endesa chile IR presentation As of March 2012

Transcription

1 endesa chile IR presentation As of March 2012

2 Our company Multinational l electricity it generation company based in Chile Vast t experience, with over 68 years of history Leading position in most of the countries where it operates Efficient and diversified investment portfolio of generation assets Conservative commercial policy leading to revenue and margin stability Part of an important worldwide electricity group (Enel, Endesa S.A, Enersis) Among the most actively traded companies in Chilean stock markets 2

3 Ownership Structure 92% 17% 4% 4% 61% 15% 60% 60% ENERSIS Chilean Pension Funds ADR Holders Other Institutional Shareholders Minority Shareholders PEHUENCHE, 93% PANGUE, 95% CELTA, 100% SAN ISIDRO, 100% ENDESA ECO, 100% CANELA, 75% EMGESA, 27% EDEGEL, 62% COSTANERA, 70% EL CHOCON, 65% ENDESA BRASIL, 39% AMPLA COELCE FORTALEZA CDSA CIEN 3

4 A unique portfolio in LATAM s Generation business Colombia No. 2 2,914 MW inst. capacity 20% market share Brazil 987 MW inst. capacity 1% market share in generation Peru No. 1 1,668 MW inst. capacity 26% market share Argentina Chile No. 1 5,611 MW inst. capacity 32% market share No. 1 3,652 MW inst. capacity 12% market share Market shares based on installed capacity Figures as of March 2012 Consolidated installed capacity: Capacity including Brazil: Consolidated energy sales 2011: Consolidated energy sales 1Q2012: 13,845 MW 14,832 MW 58,012 GWh 14,433 GWh 4

5 Latest first quarter results US$ Million Million Ch$ 1Q Q 2011 Change 1Q 2012 Revenues 552, ,935 (4%) 1, Gross margin 240, ,651 (17%) 493 EBITDA 186, ,365 (7%) 382 EBIT 140, ,600 (12%) 287 Net financial expense (37,663) (29,530) 28% (77) Net income 106, ,122 (1%) 217 Net attibutable income 66,230 96,859 (32%) 135 Higher physical sales in Colombia and Argentina. Higher costs primarily as a consequence of the drought in Chile and higher fuel cost in Colombia, Chile and Peru. Good results in Colombia. Amounts are expressed in US$, using the average exchange rate for each period 5

6 EBITDA Generation Total Installed Capacity: 13,845 MW Total Generation (TTM): 53,094 GWh Argentina 26% Chile 41% Argentina 21% Chile 39% Peru 12% Peru 17% Colombia 21% EBITDA 1Q2012 TTM: US$ million Colombia 23% Argentina 4% Peru 15% Chile 45% Endesa Brasil Endesa Chile s ownership: 40% (38.9% direct) Net Attributable Income: US$ 233 million Colombia 36% 6

7 Conservative Commercial Policy Physical Sales as of March % Chile Colombia Peru 1% 8% 27% Argentina 18% 67% 53% 28% 64% 82% 20% Regulated Unregulated Spot Physical Sales as of March 2011 Chile Colombia Peru Argentina 2% 9% 18% 32% 33% 48% 66% 25% 66% 82% 19% Regulated Unregulated Spot 7

8 Strong Financial Position Million Ch$ 1Q Q 2011 Chg. Chg % US$ Million 1Q2012 Gross Debt 1,861,469 1,962,337 (100,867) (5%) 3,819 Cash & Equivalents 355, ,474 (18,318) (5%) 729 Net Debt 1,506,314 1,588,863 (82,549) (5%) 3,090 Leverage (0.01) (1%) 0.90 Financial Expenses Coverage (1.63) (29%) 4.1 Peru, 10% Debt by Country Debt by Type Others, 9% Debt by Currency UF-Ch, 10% Bank Debt, 17% Local Currency, 36% Colombia, 31% Chile, 51% Argentina, 8% Bonds, 75% US$, 54% Amounts expressed in US$, using the exchange rate as of March 31,

9 Free Cash Flow 2,248 2,098 2,014 1,962 1,070 1, (235) (305) (251) (271) (499) (564) (549) (589) (308) (353) (435) (378) (394) (523) (462) EBITDA Net Financial Result CAPEX Income Tax FCF Dividends Q2012 ttm Amounts are expressed in US$, using the average exchange rate for each period. 1 Over Twelve Trail Months 9

10 Evolution of demand for electricity in LATAM 170% 160% 162% 161% 150% 146% Tota al Sales in GWh (%) 140% 130% 120% 110% 133% 118% 100% 90% Year CHILE COLOMBIA PERU BRAZIL ARGENTINA 10

11 Direct relation between GDP and electricity demand FINLAND CANADA per cápita (Kwh) Electric city consumption, CHINA PERU BOLIVIA COLOMBIA INDIA RUSSIA CHILE ARGENTINA BRAZIL MEXICO SPAIN ITALY GREECE JAPAN FRANCE GERMANY UNITED KINGDOM AUSTRALIA IRELAND AUSTRIA UNITED STATES Income per person (Fixed PPP $) 11

12 Competitive tariffs Final tariff to customers 1 as of December Ceará Río de Janeiro Bogotá Santiago Lima Buenos Aires Latam Average Dx Gx & Tx 1 US$/MWh. Reference values. Taxes not included. 12

13 Projects Under Construction BOCAMINA II Location: Next to the existing coal-fired plant Bocamina, in Bío-Bío region. Installed capacity: 370 MW, coal fired. Estimated investment: US$ 841 million 1Q 2012, Test on boiler burners and blowing steam pipe finished. Estimated Commercial start-up in 2H EL QUIMBO Location: Huila Department, upstream of Emgesa s Betania plant. Installed capacity: 400 MW, hydro. Estimated investment: US$ 837 million In 2009 the environmental license and building permissions were granted River detour completed on March 2012 Casa de máquinas 400 MW Presa h = 151 m Río Magdalena Vertedero Conducción Bocatoma Túnel de desviación Dique Estimated start-up: December 2014 Embalse 720 msnm 13

14 Endesa Chile IR Presentation March 2012 Projects Under Study j y Neltume, hydro Los Condores, Condores hydro power plant Installed capacity: 150 MW run-of-the-river plant Installed capacity: 490 MW Punta Alcalde, coal-steam power plant Installed capacity: 740 MW Curibamba, hydro power plant Installed capacity: 188 MW Hydroaysen, hydro power plant Installed capacity: 2,750 MW 14

15 HidroAysén One of the most efficient hydroelectric projects in the world. Renewable resources Average load factor 77% Installed capacity: 2,750 MW. Endesa Chile owns 51% and Colbún 49%. CO 2 emissions: Reduction of 16.2 million tons/year May 9, 2011: EIA was approved. Energy / FloodedSurface June 2011: Pto Montt Court of Appeals issued an injunction, leaving the resolution in state of abeyance. April 2012: The Supreme Court of Justice rescinded seven protection requirements presented tostop the construction ti of theproject. GWh / year k km The Commission is preparing the Environmental Impact Study of the Aysen Transmission System. 0 15

16 Seasonal Streaming from Hidroaysen and SIC rivers 1,400 1,200 1,000 1,400 1,200 1,000 Water Flow [m³/s] Apr-10 may jun jul ago sep oct nov dec Jan-11 feb mar Timeline MAIPO RIVER IN CABIMBAO BIOBIO RIVER IN RUCALHUE MAULE IN ARMERILLO (R.N.) CENTRAL BAKER 2 CENTRAL PASCUA Seasonal Variability Annual Variability SIC : 23% SIC : 21% SIC + Hidroaysen : 9% SIC + Hidroaysen : 12% 16

17 Hidroaysen Technical information Power Plants Zone km HVDC Land Line HVDC Submarine Line 160 km 640 km 17

18 Market Value and Dividends EBITDA (US$ Million) Dividends (Ch$xShare) Dividend Yield: 3.1% ttm ,5 26,1 16,0 22,1 11,6 2, ,35 9, , , Provisional Definitive Market Value (US$ Million) Q12 Amounts are expressed in US$, using the average exchange rate for each period 18

19 Endesa Chile s Investor Relations Team Susana Rey Investor Relations Director (56-2) susana.rey@endesa.cl Catalina Gonzalez Head of Investor Relations (56-2) cbgs@endesa.cl Juan Pablo Vicuña Investor Relations Executive (56-2) jpvp@endesa.cl Guillermo Berguecio Investor Relations Executive (56-2) gabb@endesa.cl Contact us at: ir@endesa.cl 19

20 EXHIBITS 20

21 Highlights g in 1Q 2012 Growth of 7% in electricity demand in the region Growth of 2% in physical sales on a consolidated basis Growth of 9% in operating costs, primarily as a consequence ce of higher transmission costs in Chile Better gross margins in generation in Colombia and Peru Growth of 4% in related company results, primarily due to Endesa Brasil and GNL Quintero Dry conditions still affecting Chile. 21

22 Analysis by country Colombia Installed Capacity: 2,914 MW Market Share: 20% Guavio: 1,213 MW Betania: 541 MW Río Bogotá: 716 MW Cartagena: 208 MW Termozipa: 236 MW EMGESA 85% Hydro 2,471 MW 15% Thermal 444 MW Cartagena Bogotá Million US$ 1Q Q 2011 Change Revenues % EBITDA % EBITDA Margin 64.4% 31.6% 104% Physical Sales 3,737 3,631 3% 22

23 Analysis by country Chile Installed Capacity: 5,611 MW Market Share: 32% ENDESA CHILE Tarapaca Los Molles: 18 MW Rapel-Sauzal: Maule: Laja: 466 MW 884 MW 940 MW 62% Hydro 3,465 MW D. Almagro Taltal Huasco Ralco-Pangue: aco a 1,157 MW Los Molles Tarapaca-G.Atacama: 572 MW D. Almagro Taltal: 269 MW Huasco: 64 MW San Isidro 1 and 2: 778 MW Bocamina: 128 MW TG Quintero: 257 MW 37% Thermal 2,068 MW Canela: 18 MW 1% Wind 78 MW Canela II: 60 MW San Isidro Bocamina Santiago Cachapoal Laja Maule Bio Bio Million US$ 1Q Q 2011 Change Revenues (12%) EBITDA (52%) EBITDA Margin 19.6% 35.7% (45%) Physical Sales 5,191 5,169 0% 23

24 Analysis by country Peru Installed Capacity: 1,668 MW Market Share: 26% EDEGEL Cuenca Río Rímac: 552 MW Yanango: 43 MW Chimay: 151 MW 45% Hydro 747 MW Ventanilla: 493 MW Santa Rosa: 429 MW 55% Thermal 922 MW Million US$ 1Q Q 2011 Change Revenues % Lima: Edegel (Gx) EBITDA % EBITDA Margin ag 52.8% 54.0% (2%) Physical Sales 2,439 2,391 2% 24

25 Analysis by country Argentina Installed Capacity: 3,652 MW Market Share: 12% El Chocon: 1,328 MW EL CHOCON Hydro 1,328 MW Million US$ 1Q Q 2011 Change Revenues (1%) EBITDA (1%) EBITDA Margin 53.4% 53.4% 0% Physical Sales % CIEN Line (2x1.050 MW) Interconnection with Brazil Costanera: 2,324 MW COSTANERA Thermal 2,324 MW El Chocon Costanera Million US$ 1Q Q 2011 Change Revenues (19%) EBITDA (99%) EBITDA Margin 03% 0.3% 15.6% (98%) Physical Sales 2,392 2,306 4% 25

26 Analysis by country -Brazil Cachoeira: 665 MW Installed Capacity: 987 MW Market Share: 1% CACHOEIRA Hydro 665 MW Million US$ 1Q Q 2011 Change Revenues % EBITDA (0%) Fortaleza Cachoeira Rio de Janeiro EBITDA Margin 64.7% 73.3% (12%) Physical Sales 1, % FORTALEZA CIEN: Transmission Brazil-Argentina Interconnection Fortaleza: 322 MW Thermal 322 MW Two 500 Km lines Total interconnection capacity: 2,100 MW Million US$ 1Q Q 2011 Change Revenues (24%) EBITDA % EBITDA Margin 39.4% 30% 31% Million $ 1Q Q 2011 Change Revenues % EBITDA 27 (2) (1520%) EBITDA Margin 68.6% -69.5% (199%) Physical Sales % 26

27 Customers Installed Capacity, Output MW as of 1Q 2012 Chile Brazil Peru Colombia Argentina Total Total 5, ,668 2,914 3,652 11,180 Hydro 3, ,471 1,328 7,338 Installed Capacity Nuclear Coal Oil-Gas 1, ,324 2,912 CHP / Renewables GWh as of 1Q 2012 chg. Vs. 1Q 2011 Chile Brazil Peru Colombia Argentina Total Total 4,875 0% 975 (11%) 2,273 (3%) 3,073 12% 1,088 (62%) 12,285 (8%) Output Hydro 2,715 7% % 1,327 (3%) 2,945 13% 544 2% 8,423 11% Nuclear % Coal 477 (4%) (20%) (6%) Oil-Gas 1,634 (9%) (3%) 65 36% 2,352 2% 5,081 (1%) CHP / Renewables 49 12% % 27

28 Healthy Debt Profile Financial Debt US$ Million Balance TOTAL Chile ,961.9 Argentina Perú Colombia , TOTAL , ,818.9 Credit Risk Ratings Since: Jan Apr Feb BBB+ Baa2 BBB+ BBB Baa3 BBB Affirmed: Jan 2012 May

29 Principal Financial Ratios Net debt/ebitda EBITDA/Net financial expenses 2,0 1,5 1,5 1,5 1,6 5,6 7,4 8,9 8,0 7, Q12 TTM Q12 TTM 1 Endesa Chile 1Q12 1Q11 Net Debt/ EBITDA ROE (%) 16.4% 23.2% ROA (%) 9.10% 10.7% 1 EBITDA and Net Financial Expenses are over Twelve Trail Months 29

30 Integrated risk management capability Risk variables affecting margins Output and sales targets for future years Rainfall Growth in demand Fuel prices Exchange rates Inflation Extreme hydro volatility Hydro 100% Spot Risk limit Real margin 0.9x expected margin Thermal 75% Regulated and unregulated contracts Our goal is to ensure a 95% reliability with a margin of at least 90% of budget even in the following scenarios: Lower rainfall than historical levels Increases in fuel prices Higher growth in demand ive Frequency Relati Target output 5% Results MaR 95% Target sales MMUS$ 30

31 1 Percentage over Twelve Trail Months Amounts are expressed in US$, using the average exchange rate for each period. Endesa Chile IR Presentation March Effective Commercial Policy in long term Consolidated EBITDA (Quarterly) vs. Chilean SIC Hydrology 2, ,0 22% 26% % 32% US $ Milli on 1,5 1,0 25% 26% 28% 26% 27% 23% 27% 26% 24% 27% 28% Average Volu ume, Hm 3 0,5 0,0 26% 24% 19% 26% 27% 24% 24% 21% 19% 25% 28% 30% 24% 21% 27% 27% 23% 23% 27% 26% 20% 21% 21% 22% 23% 29% 24% 26% 22% 19% ttm Q EBITDA 2Q EBITDA 3Q EBITDA 4Q EBITDA SIC Reservoir Levels (Avg Vol, hm3)

32 Relevant Stock Presence USA Stock Market NYSE (US$) Price 1Q 2012 TTM (Avg) 50.4 Max 1Q 2012 TTM 57.6 Min 1Q 2012 TTM 40.5 Daily Avg Trans Vol (million ADR) 0.13 Avg Daily Trans (US$ million traded) 6.33 Spain Stock Market LATIBEX ( ) Price 1Q 2012 TTM (Avg) 36.3 Max 1Q 2012 TTM 41.3 Min 1Q 2012 TTM 30.4 Daily Avg Trans Vol (million shares) 0.01 Avg Daily Trans ( million traded) 0.6 Chilean Stock Market BOLSA DE SANTIAGO (CLP) Price 1Q2012 TTM (Avg) Max 1Q Min 1Q Daily Avg Trans Vol (million shares) 5.08 Avg Daily Trans (CLP million traded) 4,

33 Corporate Governance Excellence LATIN AMERICA S INVESTOR RELATIONS AWARDS LIRA 2011 Best Communication of Corporate Governance: 1st Place Best Communication of Financial Results: 1st Place Best Investor Relations Officer: 3rd Place Best Investor Relations Department: 3rd Place 33

34 Disclaimer This presentation contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Endesa Chile and its management with respect to, among other things: (1) Endesa Chile business plans; (2) Endesa Chile cost-reduction ti plans; (3) trends affecting Endesa Chile financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Endesa Chile or its subsidiaries. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forwardlooking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Endesa Chile Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Endesa while undertakes no obligation to release publicly the result of any revisions to these forward-looking statements. 34

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