31 01 2013 endesa chile YE 2012 results
Highlights of 2012 Lower hydro generation in Chile, mainly explained by a third consecutive year of a severe drought. 6% growth of installed capacity in Chile, related to Bocamina II start up. 14% decrease in consolidated EBITDA explained by our operations in Chile, Argentina and Peru. 29% increase in Colombian EBITDA, mainly related to higher hydro generation and spot prices. Non-recurring accounting effects in Colombia and Peru. Indemnity insurance related to Bocamina II. 2
Results affected by the drought in Chile and high fuel costs Indicator 2011 MM ch$ 2012 MM ch$ Change 2012 MM US$* Revenues 2,404,490 2,369,386 (1%) Operational Expenses (1,217,260) (1,328,703) 9% Contribution margin 1,187,230 1,040,684 (12%) EBITDA 973,890 833,850 (14%) EBIT 787,971 632,209 (20%) Net finance expenses (114,829) (135,294) Net income before taxes 791,719 604,513 18% (24%) Net income 581,155 419,043 (28%) Net attributable income 446,874 234,335 (48%) 4,869 (2,731) EBITDA Margin 40.5% 35.2% (13%) - Profit Margin 24.2% 17.7% (27%) - E.P.S. 54.5 28.6 (51%) 2 P/E 3 14.1 27.2 106% - 2,139 1,714 1,299 (278) 1,242 861 482 1 Amounts expressed in US$, using the average exchange rate for the period (Ch$486.59 per US$). 2 Net of Foreign currency exchange differences 3 Closing share price for each year 3
EBITDA by Country Total Installed Capacity: 14,185 MW Total Generation : 53,517 GWh Argentina 26% Chile 42% Argentina 21% Chile 38% Peru 12% Peru 16% Colombia 20% EBITDA 2012: US$ 1,714 million Colombia 25% Peru 17% Argentina 3% Chile 35% Endesa Brasil Endesa Chile s ownership: 40% (38.9% direct). Net Attributable Income 1 : US$ 221 million. Colombia 45% 1 Considers the total contributions of Endesa Brasil recognized by Endesa Chile as an equity method investment. 4
Prudent Commercial Policy Physical Sales as 2012 Chile Colombia Peru 4% 5% Argentina 18% 30% 28% 66% 53% 30% 65% 82% 19% Regulated Free Clients Spot Physical Sales as 2011 Chile Colombia Peru Argentina 8% 9% 19% 30% 31% 61% 51% 27% 64% 81% 19% Regulated Free Clients Spot 5
Strong Financial Position Indicator 2011 MM Ch$ 2012 MM Ch$ Change % Change 2012 MM US$ Gross Debt 1,808,969 1,958,068 (149,098.28) (8%) 4,080 Cash 1 421,282 301,914 119,367.82 40% 629 Net Debt 1,387,687 1,656,153 (268,466.10) (16%) 3,451 Leverage 0.91 0.89 Financial Expenses Coverage 6.52 5.18 (0.01) (1.63) (1%) (31%) 0.89 5.18 Debt by Country Debt by Type Debt by Currency Peru, 8% Others, 13% UF, 10% Colombia, 36% Chile, 49% Bank Debt, 15% Local Currency, 41% Argentina, 7% Bonds, 72% US$, 49% Amounts expressed in US$, using the close exchange rate for the period (Ch$ 479.96 per US$) 1 For year 2012 considers Cash and cash equivalents and Other current financial assets. 6
Healthy Debt Profile and Credit Risk Ratings Financial Debt US$ Millions 2013 2014 2015 2016 2017 Balance TOTAL Chile 668 140 220 16 13 928 1,985 Argentina 230 36 7 - - - 273 Perú 54 54 36 60 50 83 336 Colombia - 80 164 23 119 1,099 1,486 TOTAL 952 310 428 99 181 2,110 4,080 Credit Risk Ratings Since: Jan. 2010 Apr. 2011 Feb. 2010 BBB+ Baa2 BBB+ Affirmed: Dec. 2012 Jun. 2012 Oct. 2012 7
Free Cash Flow (US$ million) 2.248 2.098 2.014 1.714 1.070 1.012 776 494 (305) (235)(251) (300) (564) (499)(551)(538) (308)(353) (435)(381) (51) (394) (523)(462) EBITDA Net Financial Result CAPEX Income Tax FCF Dividends 2009 2010 2011 2012 1 Payments for additions of fixed assets. 2 For year 2012 considers only the interim dividend paid on January 24 th, 2013. Amounts are expressed in US$, using the average exchange rate for each period. 8
Argentina Installed Capacity: 3,652 MW Market Share: 12% Total Generation: 11,289 GWh El Chocón: 1,328 MW EL CHOCÓN Hydro 1,328 MW Million US$ 2011 2012 Change Revenues 99 101 2% EBITDA 55 56 3% EBITDA Margin 54.9% 55.8% 2% Physical Sales (GWh) 2,888 3,197 11% CIEN Line (2x1,050 MW) Interconnection with Brazil Costanera: 2,324 MW COSTANERA Thermal 2,324 MW El Chocón Costanera Million US$ 2011 2012 Change Revenues 702 607 (14%) EBITDA 41-4 (110%) EBITDA Margin 5.8% (1%) (112%) Physical Sales (GWh) 8,493 8,655 2% 9
Peru Installed Capacity: 1,657 MW Market Share: 24% Total Generation: 8,740 GWh EDEGEL Cuenca Río Rímac: 552 MW Yanango: 43 MW Chimay: 151 MW 45% Hydro 746 MW Ventanilla: 485 MW Santa Rosa: 426 MW 55% Thermal 911 MW Million US$ 2011 2012 Change Revenues 493 580 18% Lima: Edegel (Gx) EBITDA 290 287 (1%) EBITDA Margin 58.9% 49.6% (16%) Physical Sales (GWh) 9,450 9,587 1% 10
Chile Installed Capacity 1 : 5,961 MW Market Share: 33% Total Generation: 20,194 GWh ENDESA CHILE Tarapaca Los Molles: 18 MW Rapel-Sauzal: 466 MW Maule: 875 MW Laja: 940 MW Ralco-Pangue: 1,157 MW Tarapaca-G.Atacama: 572 MW D. Almagro Taltal: 269 MW Huasco: 64 MW San Isidro 1 and 2: 778 MW Bocamina: 128 MW 58% Hydro 3,456 MW 41% Thermal 2,418 MW D. Almagro Taltal Huasco San Isidro Bocamina Los Molles Santiago Cachapoal Maule Laja Bio Bio Bocamina II: 350 MW TG Quintero: 257 MW Canela: Canela II: Ojos de Agua: 18 MW 60 MW 9MW 1% NCRE 87 MW Million US$ 2011 2012 Change Revenues 2,624 2,391 (9%) EBITDA 1,019 602 (41%) EBITDA Margin 38.8% 25.2% (35%) Physical Sales (GWh) 22,070 21,277 (4%) 11
Colombia Installed Capacity: 2,914 MW Market Share: 20% Total Generation: 13,294 GWh EMGESA Guavio: 1,213 MW Betania: 541 MW Río Bogotá: 716 MW 85% Hydro 2,470 MW Cartagena Cartagena: 208 MW Termozipa: 236 MW 15% Thermal 444 MW Bogotá Million US$ 2011 2012 Change Revenues 1,025 1,192 16% EBITDA 598 773 29% EBITDA Margin 58.3% 64.8% 11% Physical Sales (GWh) 15,112 16,304 8% 12
Brazil Installed Capacity: 987 MW Market Share: 1% Total Generation: 5,177 GWh CACHOEIRA Cachoeira: 665 MW Hydro 665 MW Fortaleza Million US$ 2011 2012 Change Revenues 260 319 23% EBITDA 193 229 19% EBITDA Margin 74.0% 71.9% (3%) Cachoeira Rio de Janeiro Physical Sales (GWh) 3,986 4,344 9% 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$ 2011 2012 Change Revenues 266 286 7% EBITDA 118 99 (16%) EBITDA Margin 44.3% 34.8% (21%) Million US$ 2011 2012 Change Revenues 123 149 21% EBITDA 174 105 (40%) EBITDA Margin 141.6% 70.3% (50%) Physical Sales (GWh) 2,842 2,947 4% 1 Includes CIEN, CTM and TESA 13
Expected Evolution for Endesa Chile Installed Capacity Percentage increase over installed capacity, year 2011 (13.845 MW) 18% 490 740 188 6% 150 88 145 145 3% 400 400 350 350 350 13,845 13.845 13.845 13.845 2011 2012 Under Construction On Basic Engineering Year 2011 Bocamina II Quimbo Salaco Renaico Los Condores Curibamba Punta Alcalde Neltume 14
Conclusions 1.- Severe drought affecting Chile 2.- Diversified portfolio 3.- Non-recurrent accounting effects 4.- Situation with BG 15
EXHIBITS 16
New Plant Start-Up Increasing Capacity Endesa Chile consolidated results YE 2012 Bocamina II Thermal, coal fired power plant Located in Coronel, Bío-Bío region 350 MW of installed capacity Estimated load factor: 65% Capex: US$ 841 MM Investment On October 29 th, 2012, Bocamina II started its commercial operations with the formal approval from the authority. Approx 510 GWh 1 generated during year 2012. 1 IEstimated generation including tests. 17
Projects Under Construction El Quimbo Hydro power plant. Located in Huila Department Utilizes stream coming from Magdalena river 400 MW of installed capacity Estimated load factor: 60% River detour in March 2012 Capex: US$ 837 MM Investment Estimated start-up: December 2014 18
Projects Under Construction Endesa Chile consolidated results YE 2012 Salaco Chain (optimization) Repowering the minor plants to reach a 260 MW power. Located in the Bogota River system. Optimization works started on January 2013. 145 MW will be added to the current capacity. Estimated start-up: 4 th quarter 2013 (first unit). 19
Projects Under Study Neltume Hydro power plant, run of the river Located in Panguipulli, in Los Ríos region (SIC). 490 MW of installed capacity. Los Cóndores Hydro power plant Located in San Clemente, in Maule region 150 MW of installed capacity EIS approved. 20
Projects Under Study Punta Alcalde Thermal, Coal-steam power plant Located in Huasco, in Atacama region (SIC) 740 MW of installed capacity EIS approved by the Ministers Committee on Dec 03 th 2012 Curibamba Hydro power plant Located in Junín Department, utilizes streams coming from Comas and Uchubamba rivers 188 MW of installed capacity EIS approved. 21
Projects Under Study Renaico Wind farm Located in Araucanía region (SIC) 88 MW of installed capacity EID approved for the generation plants. 22
Projects Under Study Hidroaysén Hydro power plant located in Aysén region 2,750 MW of installed capacity EIS approved for the generation plants (5) One of the most efficient hydroelectric projects in the world, using renewable resources Average load factor: 77% Endesa Chile owns 51% and Colbún 49%. CO2 emissions: Reduction of 16.2 million tons/year Energy / Flooded Surface 350 300 312 GWh / year-km2 250 200 150 100 144 134 81 81 75 69 65 54 54 53 45 41 50 29 23 12 12 7 0 23
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