endesachileirpresentation AS OF SEPTEMBER 30th, 2010

Transcription

1 endesachileirpresentation AS OF SEPTEMBER 30th, 2010

2 whoisendesachile? A unique portfolio in Latam s Generation business Colombia N 1 2,914 MW inst. capacity 21% market share Brazil 987 MW inst. capacity 1% market share in generation Peru N 1 1,668 MW inst. capacity 26% market share Chile N 1 5,611 MW inst. capacity 36% market share Argentina N 1 3,652 MW inst. capacity 13% market share Market shares based on installed capacity Figures as of September 2010 Consolidated installed capacity: Capacity including Brazil: Consolidated energy sales 2009: Consolidated energy sales 9M10: 13,846 MW 14,833 MW 59,859 GWh 42,156 GWh 2

3 whoisendesachile? Positive evolution of institutional and regulatory frameworks High Medium/High Constitution and Public Services Electricity Employers regulation Associations Independent regulatory body Contracts compliance Controversy settlement (judges) Foreign investment legislation Global Valuation Source: Internal, supported by external consultancy 3

4 whoisendesachile? A unique portfolio in Latam s Generation business The biggest thermal plant in Latin America and interconnection Argentina - Brazil Costanera 2,324 MW Buenos Aires Argentina Cien (Interconnection Argentina - Brazil) 1,000 Km 2,100 MW Rio Grande do Sul - Argentina 4

5 whoisendesachile? A unique portfolio in Latam s Generation business The largest hydro plants in Argentina and Colombia El Chocón 1,328 MW installed capacity Neuquén and Río Negro Argentina Guavio 1,213 MW installed capacity Cundinamarca Colombia Ralco 690 MW installed capacity VIII Region of Bío-Bio Chile 5

6 whoisendesachile? A unique portfolio in Latam s Generation business The first wind farm in Chile and the first regasification plant in the Pacific Area GNL Quintero Regasification capacity: 9.5 Mm 3 /d (3.48 bcm/y) 2 storage tanks 160,000 m 3 V Region Chile Canela wind farm Canela I and II MW installed capacity IV Region Chile 6

7 whoisendesachile? We are Ownership part of Enel structure Group 92% 61% Chilean Pension Funds ADR Holders Other Inst. Shareholders Minority Shareholders 60% 16% 4% 16% 4% Pehuenche 92% San Isidro 100% Emgesa 27% Edegel 62% Costanera 70% Endesa Brasil 39% Pangue 95% Celta 100% Endesa Eco 100% Canela 75% El Chocón 65% Ampla Coelce Fortaleza CDSA CIEN Figures as of September 2010 endesachileirpresentation 7

8 whoisendesachile? We are part of Enel Group Installed Capacity (GW) Net Generation (TWh) Sales to Final Consumers (TWh) North America 0.7 GW 1.9 TWh Russia 8.2 GW 40.7 TWh 17.4 TWh Central America 0.6 GW 2.5 TWh Colombia 2.9 GW 12.9 TWh 7.3 TWh Peru 1.6 GW 8.8 TWh 5.2 TWh Chile 5.4 GW 21.6 TWh 6.5 TWh Brazil 1.1 GW 3.9 TWh 14.5 TWh Argentina 4.5 GW 14.4 TWh 13.4 TWh France Iberia 22.5 GW 85.5 TWh 109 TWh Morocco 0.1 GW 1.0 TWh Italy 40.3 GW 96.3 TWh TWh Slovakia 5.7 GW 22.5 TWh Romania Greece 9.9 TWh 0.1 GW 0.2 TWh Bulgaria 0.6 GW 3.7 TWh 0.9 TWh 95 GW Installed Capacity 62 Million Clients Presence in 23 countries 82,000 employees 8

9 Total Installed Capacity: 13,846 MW operationalaspects Figures by country as of September 2010 Total Generation: 38,484 GWh Peru 12% Peru 16% Colombia 21% Chile 41% Chile 40% Colombia 22% Argentina 26% Total Ebitda 12M: US$ 2,057 million Argentina 22% Peru 11% Colombia 28% Argentina 6% Chile 55% Affiliate Company: Endesa Brasil Endesa Chile ownership: 38.9% Equity Gains (Dec. 2009): MMUS$ 872 Endesa Chile s stake: MMUS$ 495 9

10 operationalaspects Greater predictability and stability in prices US$/MWh Marginal hourly cost Range of Demand Supply Peak Turbine US$/MWh Diesel-Fuel US$/MWh LNG Combined Cycle US$/MWh Biomass 60 US$/MWh Hydro Coal US$/MWh Wind Power 8 US$/MWh MW Hydro, Wind Coal, LNG Diesel-Fuel 5,500 MW 4,500 MW 4,500 MW The regulator audits all the fuel contracts The regulator measures the efficiency of the plants The companies report their technical availability 10

11 operationalaspects Integrated risk management capability Risk variables affecting margins Target output and sales in future years Rainfall Growth in demand Fuel prices Exchange rates Inflation Extreme hydro volatility 100% Spot Hydro Risk limit Real margin 0.9x expected margin Thermal 75% Regulated and free contracts Our aim is to ensure with a 95% of reliability a margin at least 90% of budget even in the following scenarios: Lower rainfall than historical levels Increases in fuel prices Lower growth in demand Relative Frequency Target output 5% Results MaR 95% Target sales MMUS$ 11

12 operationalaspects Summary of consolidated results Var. % US$ Million FY09 9M M10 9M10/9M09 (a) Revenues 4,322 3,281 3, % Operating income 1,817 1,447 1,223 (15.5%) Operating margin 42% 44% 34% (22.0) Ebitda 2,246 1,703 1,514 (11.1%) Net income (b) 1, (24.0%) Physical sales (GWh) 59,859 44,688 42,156 (5.7%) Main drivers: higher costs of energy purchases and lower energy sales price in Chile and higher fuel costs in Argentina a) Throughout this presentation, variations may not coincide due to figures rounding b) Attributable to Endesa Chile s shareholders c) Figures are translated into US dollars using the average exchange rate for the nine months period of each year, corresponding to Ch$ / dollar for January-September 2009 Ch$ / dollar for January-September

13 financialaspects Comfortable debt maturity Financial Debt (US$ million) Balance TOTAL Chile ,136 2,116 Argentina Peru Colombia Total ,679 3,848 Financial Debt by Country Colombia 26% Peru 12% Argentina 8% Chile 54% Figures as of September

14 + Revision Date: Jan Date: Dec BBB+ Baa3 Date: Feb BBB+ financialaspects Credit Risk Agencies recognition Date: Mar Date: Jan AA AA BBB Ba1 BBB AA- AA- International market Chilean market Ratings based upon: Well diversified and efficient assets Leading market share in the four countries where we operate Transparent and favorable regulatory framework in Chile Solid financials, good cash flow generation and prudent financial management Conservative commercial policy 14

15 financialaspects Dividends: sustained growth to shareholders Dividends (US$ m) CAGR = 46% Payout ratio 50% 50% 60% 40% 434 1, Total 35.11% Market Cap (US$ m) (1) 8,322 CAGR = 12% 10,072 10,393 9,428 13,954 14, Sep-10 Values calculated in dollars at the end of each period. (1) Source: Bloomberg 15

16 whereareweheadingto? Direct relation between GDP and electricity demand Real GDP vs. Electricity Demand Per capita Electricity demand per capita (Gwh) Peru Chile Argentina Brazil Mexico Colombia Finland Sweden United States France Spain Russia Germany Slovakia Italy Denmark Portugal United Kingdom Greece GDP per capita (Thousand US$)

17 whereareweheadingto? Impact of the earthquake BOCAMINA II BOCAMINA I CHIMNEY ADMINISTRATION BUILDING PUMPING ROOM 17

18 whereareweheadingto? Projects under study Los Condores, hydro power plant Installed capacity: 150 MW Neltume, hydroelectric run-of-the-river plant Installed capacity: 490 MW Piruquina, mini-hydro run-of-the-river plant Installed capacity: 7,6 MW Choshuenco, hydro power plant Installed capacity: 128 MW Punta Alcalde, coalsteam power plant Installed capacity: 740 MW 18

19 thankyou

20 whereareweheadingto? Exhibits 20

21 » Hydrology risk» Electricity demand growth» Portfolio of generation assets» Evolution of fuel prices» Exchange rate risk Physical sales as of September 2010 Commercialpolicy Conservative management Minimize margin variation Chile Colombia Peru Argentina 7% 12% 19% 27% 33% 60% 56% 23% 81% 17% 65% Regulated Unregulated Spot 21

22 whereareweheadingto? Important contribution to growing demand Colombia: Cartagena +142 MW Peru: Ventanilla +457 MW Chile: San Isidro II (1 st stage) +248 MW Palmucho +32 MW Canela I +18 MW Chile: San Isidro II (2 nd stage) +105 MW Ojos de Agua +9 MW Colombia: Cartagena: +66 MW Chile: San Isidro II +46 MW Quintero +257 MW Canela II: +60 MW Peru: Santa Rosa +200 MW 567 1, Amounts are in MW Total 1.8 GW of new installed capacity in the past 5 years Close collaboration with authorities to develop new capacity Committed to Energy Efficiency policies and promotion of NCRE 22

23 whereareweheadingto? Projects completed in 2009 Quintero, thermal power plant, Chile Installed capacity: 257 MW 2 gas turbines (dual) open cycle Start-up: Sept Canela II, wind farm, Chile Installed capacity: 60 MW 40 wind generators Start-up: Dec 2009 Santa Rosa, thermal power plant, Peru Installed capacity: 200 MW Gas turbine in open cycle Start-up: Sept GNL, regasification plant, Chile Endesa Chile s participation: 20% LNG supplier and partner: BG Group Start-up: Sept Fast-track commercial operation: Oct Total Capacity: 9.6 million m3/day 23

24 whereareweheadingto? Projects under construction Bocamina II, coal-steam, Chile Installed capacity: 370 MW Fuel type: imported coal Estimated start-up: by the end of 2011 El Quimbo, hydro power plant Installed capacity: 400 MW 24

25 whereareweheadingto? Projects under study Aysen Hydroelectric Project, Chile Installed capacity: 2,750 MW Endesa Chile s participation: 51% Takes advantage of water: natural resource, renewable and clean CO2 emissions: Reduction of 16.2 million tons/year 1st half 2009: first set of answers to EIA was completed January 2010: additional observations were received October 28, 2010: Answers to the second set of questions of the EIA were submitted 25

26 liquidityleaders The most liquid shares in local Stock Exchange 2009 Recurrent Operations Santiago Stock Exchange Company Traded Vol. Million US$ 1 D&S 4,481 2 Endesa Chile 2,334 3 Enersis 2,160 4 CAP 2,091 5 Cencosud 1,920 IPSA * Leaders Year 2010 Index breakdown Company Index Weight 1 COPEC 11.6% 2 Enersis 7.4% 3 Endesa Chile 7.2% 4 Lan Airlines 6.9% 5 Cencosud 6.1% US$ 10 million trading time NYSE: 2 days Santiago: 1 day Average Yearly Float Rotation: 0.8 (**) (*) IPSA: Selected Shares Price Index (Chile) (**) Takes into account the three Stock Exchange markets where we are listed 26

27 financialaspects Strong financial position Net Debt Evolution Debt by Type (Million US$) 5000 Others, 505 Banks, 643 US$ millon ,719 3,612 3,833 3,239 3,292 3,638 Local Bonds, 1,851 Yankee Bonds, Sep-10 Total gross debt: US$3,916 million Debt by Currency As of September 2010: US$ 210 million of cash and cash equivalents on a consolidated basis Liquidity position enhanced with US$ 756 million of committed Revolving Credit Lines, both locally and abroad and US$ 231 million of uncommitted short term credit lines in the Chilean capital market Local currency 31% US$ 55% Endesa Chile ring-fenced its Yankee Bonds and Local Bonds ; cross default clauses only referenced to Endesa Chile and its Chilean subsidiaries UF-Ch$ 14% Figures as of September

28 financialaspects Recurrent growth of Endesa Chile s financials EBITDA (US$ million) Net Income (US$ million) CAGR 06-9M10 : + 13% CAGR 06-9M10 : + 24% 1,279 1,540 2,042 2,246 2, , Sep-10 12M Sep-10 12M (*) Last 12 months data as of September

29 financialaspects Strong financial ratios 3 Net debt/ebitda 2, x 2.5x 1,5 1 0,5 0 Endesa Chile s investment grade status restored 1.6x 1.5x 1.8x Sep-10 (12M) EBITDA/Net financial expenses x 5.0x Endesa Chile s investment grade status restored 6.5x 7.7x 7.3x Sep-10 (12M) 29

30 EnergyCostUS$/MWh whataboutbrazil? Catalysts Highly dependent on hydro energy sources Lack of investment in new capacity Price volatility Main Changes (2003) New Model for the electricity sector, tenders up to 15 years (thermal) and 30 years (hydro) Eager to grow: Attractive returns required Match with our Latam portfolio s profitability 140 Our Assets and Medium Term Forecast Marginal Cost Brazil US$/MWh MgC 62, Hydraulic 665 MW GWh Gas 322 MW GWh Net Installed Capacity (MW) 30

31 whataboutbrazil? CIEN: From a commercial scheme to a regulatory solution We are about to initiate regulatory negotiations to determine stable remuneration for the Argentina - Brazil interconnection (CIEN) Approval of Law 16/2009 Will allow the company to request remuneration similar to that of Brazil's basic grid Aspects to define with ANEEL in 2010 and 2011 Asset base, regulated rate, O&M, etc Capacity 2,100 MW 1,000 km : Commercial scheme subject to Argentina's energy situation : Regulated remuneration according to use and requirements 31

32 whoisendesachile? General highlights Vast experience, with over 65 years of history Multinational electricity generation company, based in Chile Leading market position in most of the countries where it operates es Large and efficient investment portfolio of generation assets within South America Excellent reputation and high level of technical standards Committed with regulatory authorities, the environment and Corporate Governance best practices Part of an important worldwide electricity group (Enel, Endesa,, S.A., Enersis) 32

33 Disclaimer This presentation contains statements that constitute or may constitute statements about the future, as established in the United States Private Securities Litigation Reform Act of Such statements appear frequently in this presentation with statements referring to our intentions, beliefs and expectations, which include, but are not limited to, any statement with respect to: (1) our investment program, (2) trends that affect our financial condition or operating income, and (3) the effects of changes in the regulatory framework for the electricity industry in one or more of the countries in which we operate. As such statements are subject to risks and inaccuracies, the effective results may differ significantly with respect to those expressed or implied in such statements with a view to the future. Such statements should not be unduly relied upon as they only refer to the position on the date on which they were prepared. We assume no obligation to publicly report on changes that might be applied to the statements with a view to the future. endesachileirpresentation 33

34 Endesa Chile s Investor Relations Team Susana Rey Investor Relations Director (56-2) susana.rey@endesa.cl Denisse Labarca Head of Investor Relations (56-2) denisse.labarca@endesa.cl Irene Aguilo Investor Relations Executive (56-2) iaguilo@endesa. cl M. Teresa Fuentealba Investor Relations Executive (56-2) mtfd@endesa.cl Gloria Mora Investor Relations Assistant (56-2) gaml@endesa.cl Contact us at: ir@endesa.cl 34