Endesa Chile IR presentation As of December 2013
Ownership Structure 92% ENERSIS 61% 12% 3% 4% 6% 15% 60% Chilean Pension Funds Institutional Shareholders ADR Holders 60% Minority Shareholders Other Institutional Shareholders CHILE COLOMBIA PERU ARGENTINA BRAZIL PEHUENCHE, 93% CELTA, 96% EMGESA, 27% EDEGEL, 62% COSTANERA, 76% EL CHOCÓN, 65% ENDESA BRASIL, 39% AMPLA COELCE FORTALEZA CDSA CIEN 2
A unique portfolio in LATAM s Generation business COLOMBIA 2,925 MW inst. capacity Hydro: 2,481 MW Thermal : 444 MW 20% market share 2 PERU No. 1 No. 2 BRAZIL 987 MW inst. capacity Hydro: 665 MW Thermal : 322 MW 1% market share in generation 2 1,540 MW inst. capacity Hydro: 751 MW Thermal : 789 MW ARGENTINA 21% market share 2 No. 2 CHILE No. 1 3,652 MW inst. capacity Hydro: 1,328 MW 5,571 MW inst. capacity 1 Thermal: 2.324 MW Hydro: 3.456 MW Thermal : 2,028 MW 12% market share 2 NCRE: 87 MW 30% market share 2 1 Excludes the proportional assets from GasAtacama (390 MW). 2 Calculated based on installed capacity Consolidated installed capacity: Capacity including Brazil: Consolidated energy sales 2012: Consolidated energy sales 2013: 13,688 MW 14,675 MW 58,621 GWh 57,754 GWh 3
Financial Highlights 1 Ch$ million 2 2013 2012 Change MM US$ 2013 Revenues 2,027,432 2,320,385 (13%) 4,094 Costs (830,874) (1,318,480) (37%) (1,678) Contribution Margin 1,196,558 1,001,905 19% 2,416 EBITDA 978,993 808,101 21% 1,977 EBIT 782,839 612,416 28% 1,581 Net Financial Expenses (137,130) (146,995) (7%) (277) Related Company Results 119,347 135,013 (12%) 241 Taxes (204,907) (182,833) 12% (414) Net Income 563,506 419,023 34% 1,138 Attributable to shareholders of Endesa Chile 353,927 234,335 51% 715 1 Under IFRS, Endesa Chile has adopted the Chilean Peso as functional currency, comparisons between periods have been only made under Ch$. 2 Reference average exchange rate was 495.18 Ch$/US$ for 2013 and the closing rate was 524.61 Ch$/US$ as of December 31, 2013 4
EBITDA by Country Total Installed Capacity 1 : 13,688 MW Total Generation 1 : 51,417 GWh Argentina 27% Chile 41% Argentina 21% Chile 38% Peru 11% Peru 16% Colombia 21% Colombia 25% 2013 EBITDA : US$ 1,977 million Argentina 6% Peru 16% Chile 37% Endesa Brasil Endesa Chile s ownership: 39.4% (37.1% direct). Net Attributable Income 2 : US$ 191 million. Colombia 41% 1 Excludes GasAtacama (390 MW) and Endesa Brasil (987 MW). 2 Considers the total contributions of Endesa Brasil recognized by Endesa Chile using the equity method investment. 5
Balanced Commercial Policy 2013 Physical Sales Endesa Chile IR presentation YE 2013 Chile Colombia Peru Argentina 20% 7% 28% 11% 14% 73% 20% 52% 38% 51% 86% Regulated Unregulated Spot 2012 Physical Sales Chile Colombia Peru Argentina 4% 28% 5% 18% 29% 67% 19% 53% 30% 65% 82% Regulated Unregulated Spot 6
Healthy Debt Profile US$ million 2,500 2,000 1,500 1,000 500 0 70 797 345 Financial Debt Maturity 1 Total Debt: US$ 3,836 million 55 29 65 98 74 133 49 1,995 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond Bonds Banks and Other 126 Cash: US$ 617 million Commited Credit Lines: US$ 493 million Non-Commited Credit Lines: US$ 353 million Average life of debt: 7 years Debt by Country (MM US$) Debt by Type Debt by Currency 1 1 1 Peru, 283 Others, 16% UF + CLP, 12% Colombia, 1,656 Argentina, 222 Chile, 1,675 Bonds, 70% Bank Debt, 14% US$, 42% Other Local Currency, 46% 1 Includes obligations with related companies and other financial adjustments. 7
Free Cash Flow (US$ million) 1 1,977 1,714 494 697 (300) (277) (538) (590) (381) (414) (244) (61) EBITDA Net Financial Income Payments for Additions of Fixed Assets Income Tax Free Cash Flow Dividends 2 2012 2013 1 Amounts translated into US$ at the average exchange rate for each period. 2 For year 2013, considers only the provisional dividend of Ch$ 3.87 per share paid on Jan 31, 2014; translated into US$ at closing exchange rate as of Dec 31, 2013 (Ch$ 524.61 per US$). * For year 2012, jointly controlled companies are included. 8
Total Sales in GWh (%) Endesa Chile IR presentation YE 2013 9 Electricity demand Evolution in LATAM Historic electricity demand growth (CAGR, last ten years) 180% 170% 5.6% 160% 4.9% 150% 4.0% 140% 3.1% 130% 2.7% 120% 110% 100% 90% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Years CHILE COLOMBIA PERU BRAZIL ARGENTINA
Electricity consumption, per capita (Kwh per year) Endesa Chile IR presentation YE 2013 18,000 Direct relation between GDP and electricity demand 16,000 FINLAND CANADA 14,000 UNITED STATES 12,000 10,000 AUSTRALIA 8,000 6,000 RUSSIA GREECE JAPAN AUSTRIA FRANCE GERMANY SPAIN ITALY UNITED KINGDOM 4,000 CHINA ARGENTINA CHILE 2,000 BRAZIL MEXICO INDIA PERU IRELAND BOLIVIA COLOMBIA 0 0 10,000 20,000 30,000 40,000 50,000 60,000 GDP per capita (current PPP, US$) Data source: The World Bank. Chile aims to be in the group of developed countries. There is no development without energy. 10
Projects Under Construction El Quimbo Hydro power plant. Located in the Huila Department. Utilizes stream coming from Magdalena River. 400 MW of installed capacity. Estimated load factor: 60%. River detour in March 2012. 11
Projects Under Construction Endesa Chile IR presentation YE 2013 Salaco Chain (optimization) Repowering the minor plants to reach 221 MW capacity. Located in the Bogotá River system. Optimization works started in January 2013. 145 MW will be added to the capacity. On November 6 th, 2013 started the commissioning of the Dario Valencia unit 2, with 50MW of installed capacity. 12
Expected Evolution for Endesa Chile s Installed Capacity 16% increase over 2013 installed capacity + 16% + 12% 120 150 188 Taltal, Chile Los Condores, Chile Curibamba, Peru 740 Pta Alcalde, Chile + 4% 490 Neltume, Chile 400 145 El Quimbo, Colombia Salaco, Colombia 13,688 2013 Under Construction On Basic Engineering 13
Market Value and Dividends 1 EBITDA (US$ Million) Dividends (Ch$ per Share) 1,503 1,671 2,033 2,248 2,098 2,014 1,661 1,977 21.3 26.8 32.5 27.2 21.6 13.8 14.3 2006 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 2 Market Value (US$ Million) 3 10,072 10,393 9,428 13,963 15,364 12,102 13,297 12,230 2006 2007 2008 2009 2010 2011 2012 2013 Source: Intern using Bloomberg 1 Amounts expressed in US$, using the average exchange rate for each period. For Years 2010 and 2011 only consider jointly controlled companies. 2 Considers the expected final dividend for period 2013, to be approved at the Annual Shareholders meeting, (with 50% dividend policy) to be held in April 2014. 3 Amounts expressed in US$, using the last exchange rate for each period. 14
Key factors Multinational electricity generation company based in Chile. Vast experience, with over 70 years of history. Efficient and diversified investment portfolio of generation assets. Balanced commercial policy leading to revenue and margin stability. Part of an important worldwide electricity group (Enel, Endesa, Enersis). Among the most actively traded companies in Chilean stock markets. 15
Endesa Chile s Investor Relations Team Susana Rey Investor Relations Director (56-2) 2630 9606 susana.rey@endesa.cl Catalina Gonzalez Head of Investor Relations (56-2) 2630 9603 cbgs@endesa.cl Guillermo Berguecio Investor Relations Executive (56-2) 2630 9506 gabb@endesa.cl Contact us at: ir@endesa.cl 16
EXHIBITS 17
Highlights for 2013 51% growth in Net Income attributable to Endesa Chile s shareholders. 37% decrease in procurement and service costs, mainly in Chile. 19% increase in consolidated Operating Margin, mainly due to operating improvements in Chile, Argentina and Colombia. 21% increase in consolidated EBITDA. 7% increase in thermal generation, due to the commissioning of Bocamina II. 18
Argentina Installed Capacity: 3,652 MW Market Share * : 12% Total Generation: 10,840 GWh EL CHOCÓN El Chocón: 1,328 MW Hydro 1,328 MW Million US$ 2013 2012 Change Revenues 74 99 (25%) EBITDA 33 55 (40%) EBITDA Margin 45% 56% (20%) Total electricity sales 3,392 3,197 6% Costanera: 2,324 MW COSTANERA Thermal 2,324 MW El Chocón Costanera Million US$ 2013 2012 Change 2 Revenues 192 596 (68%) EBITDA 80 (4) - EBITDA Margin 42% (1%) - Total electricity sales 8,962 8,655 4% Based on installed capacity 1 Includes the One Time effect of US$394 MM in to the accounting of the new regulation for generators in Argentina 19
Chile Installed Capacity 1 : 5,571 MW Market Share * : 30% Total Generation 1 : 19,438 GWh ENDESA CHILE Tarapaca Los Molles: 18 MW Rapel-Sauzal: Maule: Laja: 466 MW 875 MW 940 MW 62% Hydro 3,456 MW D. Almagro Taltal Huasco Ralco-Pangue: 1,157 MW Tarapaca 182 MW D. Almagro Taltal: 269 MW Huasco: 64 MW San Isidro 1 and 2: 778 MW Bocamina 1 and 2 478 MW 36% Thermal 2,028 MW San Isidro Bocamina Los Molles Santiago Cachapoal Maule Laja Bio Bio TG Quintero: 257 MW Canela: Canela II: Ojos de Agua: 18 MW 60 MW 9MW 2% NCRE 2 87 MW Million US$ 2013 2012 Change Revenues 1,965 2,251 (13%) EBITDA 736 539 37% EBITDA Margin 37% 24% 56% Total electricity sales 20,406 20,878 (2%) 1 Excludes the proportional assets from GasAtacama (390 MW). 2 Non Conventional Renewable Energy. Based on installed capacity 20
Colombia Installed Capacity: 2,925 MW Market Share * : 20% Total Generation: 12,748 GWh EMGESA Guavio: 1,213 MW Betania: 541 MW Río Bogotá: 727 MW 85% Hydro 2,481 MW Cartagena Cartagena: 208 MW Termozipa: 236 MW 15% Thermal 444 MW Million US$ 2013 2012 Change Revenues 1,291 1,172 10% Termozipa Betania Cadena Vieja / Cadena Nueva Bogotá El Guavio EBITDA 811 760 7% EBITDA Margin 63% 65% (3%) Total electricity sales 16,090 16,304 (1%) * Based on installed capacity 21
Peru Installed Capacity: 1,540 MW Market Share * : 20% Total Generation: 8,391 GWh EDEGEL Cuenca Río Rímac: 556 MW Yanango: 43 MW Chimay: 151 MW 49% Hydro 750 MW Ventanilla: 485 MW Santa Rosa: 304 MW 51% Thermal 789 MW Million US$ 2013 2012 Change Revenues 573 570 1% Thermal units Hydro units Lima EBITDA 318 282 13% EBITDA Margin 55% 50% 12% Total electricity sales 8,903 9,587 (7%) * Based on installed capacity 22
Brazil Installed Capacity: 987 MW Market Share * : 1% Total Generation: 4,992 GWh Cachoeira: 665 MW CACHOEIRA Hydro 665 MW Million US$ 2013 2012 Change Revenues 237 313 (24%) EBITDA 178 225 (21%) EBITDA Margin 75% 72% 5% Total electricity sales 3,564 4,344 (18%) CIEN Fortaleza Cachoeira Rio de Janeiro Fortaleza: 322 MW FORTALEZA Thermal 322 MW CIEN 1 : Transmission Brazil-Argentina Interconnection Two 500 Km lines Total interconnection capacity: 2,100 MW Million US$ 2013 2012 Change Revenues 341 281 21% EBITDA 111 98 14% EBITDA Margin 33% 35% (6%) Million US$ 2013 2012 Change Revenues 137 146 (7%) EBITDA 93 103 (10%) EBITDA Margin 68% 70% (3%) Total electricity sales 3,262 2,947 11% 1 Includes CIEN, CTM and TESA * Based on installed capacity 23
Projects Under Study Endesa Chile IR presentation YE 2013 Los Cóndores Hydro power plant, run of the river. Located in San Clemente, in Maule region. 150 MW of installed capacity. Estimated load factor: 46% EIS 1 approved. Curibamba Hydro power plant, run of the river. Located in Junín Department, utilizes streams coming from Comas and Uchubamba Rivers. 188 MW of installed capacity. EIS 1 approved. 1 Environmental Impact Study. 24
Projects Under Study Endesa Chile IR presentation YE 2013 Punta Alcalde Thermal, coal-steam power plant. Located in Huasco, in Atacama region (SIC). 740 MW of installed capacity. Estimated load factor: 83% On Jan 17, 2014, the Supreme Court of Chile reaffirmed the approval of the EIS 1, in line with the ruling of the Ministers Committee on Dec 3, 2012. Taltal (Conversion) Closed will upgrade the existing LNG power plant. Conversion to Combined Cycle. Located in the Antofagasta region (SIC). 120 MW will be added to the current 245 MW capacity. EIS 2 submitted for approval in Dec 2013 1 Environmental Impact Study. 2 Environmental Impact Statement. 25
Projects Under Study Endesa Chile IR presentation YE 2013 Neltume Hydro power plant, run of the river. Located in Panguipulli, in Los Ríos Region (SIC). 490 MW of installed capacity. EIS 1 under review. HidroAysén Hydro power plants located in Aysén Region. Endesa Chile owns 51% and Colbún 49%. 2,750 MW of installed capacity Average load factor: 77%. EIS 1 approved the generation plants (5). 1 Environmental Impact Study. 26
Installed Capacity and Energy Generation MW CHILE COLOMBIA PERU ARGENTINA TOTAL Installed Capacity (MW) Total HYDRO NUCLEAR COAL OIL-GAS CHP / RENEWABLES 5,571 2,925 1,540 3,652 13,688 3,456 2,482 750 1,328 8,016 0 0 0 0 0 660 236 0 0 896 1,368 208 790 2,324 4,690 87 0 0 0 87 Gwh / Change 2 CHILE COLOMBIA PERU ARGENTINA TOTAL TOTAL 19,438 1.3% 12,748 (3.8%) 8,391 (2.1%) 10,840 (3.3%) 51,417 (1.5%) Net Generation (GWh) HYDRO 9,851 (8.8%) 11,784 (6.8%) 4,474 1.0% 2,317 (17.3%) 28,426 (7.3%) NUCLEAR - - - - - - - - - - COAL 3,601 59.7% 873 119.1% - - - - 4,474 68.6% OIL-GAS 5,804 (2.2%) 91 (55.2%) 3,917 (5.4%) 8,523 1.4% 18,334 (1.9%) CHP / RENEWABLES 183 (10.3%) - - - - - - 183 (10.3%) 1 Compared with 2012 27
Strong Financial Position Ch$ million 2013 2012 Variation Change MM US$ 1 2013 Gross Debt 1,894,496 1,932,107 (37,611) (2%) 3,611 Cash 323,807 235,678 88,130 37% 617 Net Debt 1,570,689 1,696,429 (125,740) (7%) 2,994 Leverage 2 (x) 0.88 0.88 - - - Financial Coverage 3 (x) 6.30 5.00 1.30 26% - Credit Risk Ratings Since: Jan. 2010 Apr. 2011 Feb. 2010 BBB+ Baa2 BBB+ Affirmed: Aug. 2013 Sept. 2013 Aug. 2013 1 Amounts translated into US$ at closing exchange rate as of December 31, 2013 (Ch$ 524.61 per US$). 2 Total debt / (equity + minority interest). 3 EBITDA / (Financial expenses + Income (Loss) for indexed assets and liabilities + Foreign currency exchange differences, net). 28
Balanced Debt Maturity in each country Financial Debt Maturity 1 US$ million 2014 2015 2016 2017 2018 Balance TOTAL Chile 540 219 15 12 12 877 1,675 Argentina 197 16 9 - - - 222 Peru 56 36 60 50 35 46 283 Colombia 74 130 11 109 134 1,199 1,656 TOTAL 867 401 94 171 182 2,122 3,836 1 Includes obligations with related companies and other financial adjustments. 29
Principal Financial Ratios Net debt 1 /EBITDA EBITDA/Net financial expenses 2.0 2.1 7.4 8.9 8.0 7.1 1.5 1.5 1.5 1.5 5.6 5.4 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Endesa Chile 2013 2012 Financial Expense Coverage 2 6.3 5.0 ROE (%) 13.6% 9.2% ROA (%) 8.5% 6.5% 1 Includes obligations with related companies and other financial adjustments. 2 EBITDA / (Financial expenses + Income (Loss) for indexed assets and liabilities + Foreign currency exchange differences, net) 30
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