Corporate Presentation March 2016 - Home Enel · Endesa Chile Investor Presentation 1Q 2016 USE:...

1Q 2016

Endesa Chile IR Presentation

Endesa Chile Investor Presentation 1Q 2016

USE: Public, Investor Relations 2

PEHUENCHE, 93%

CELTA, 96%

GASATACAMA, 98%

•COSTANERA, 76% •EL CHOCÓN, 65%

•EDEGEL, 62% •EMGESA, 27%

• ENEL BRASIL, 37% AMPLA, 17%

COELCE, 22% FORTALEZA, 37% CDSA, 37% CIEN, 37%

61%

60%

COLOMBIA PERU ARGENTINA BRAZIL1

CHILE

Committed Shareholders ITALY

CHILE

1 Recognized as equity method investments.

•GNL Quintero, 20% •Transquillota ,48% •Electrogas, 43% •GNL Chile, 33%

CHILE1

60% 16%

4%

6%

14% Enersis S.A.

Chilean Pension Funds

ADRs (Citibank N.A.)

Retail

Institutional Investors

Organization structure

Endesa Chile (before Spin-off)


USE: Public, Investor Relations

12/18/2015: ESMs approved the spin-off.

03/01/2016: Spin-off of Enersis, Endesa Chile and Chilectra becomes effective.

2H16: ESMs call to vote merger.

Enersis

Chilectra Endesa

99% 60%

Enel SpA

Enel

Iberoamérica

100%

Enersis

Chile

Chilectra

Chile

Endesa

Chile

60% 99%

61%

Enersis

Américas

Enel SpA

Enel

Iberoamérica

100%

Chilectra

Américas

Endesa

Américas

60% 99%

Enersis

Chile

61%

Enel SpA

Enel

Iberoamérica

100%

Chilectra

Chile

Endesa

Chile

60% 99%

>50%

Chilectra

Américas

Endesa

Américas

Enersis

Américas

ARG BR PE COL

These companies are

expected to merge in

2H16.

Str

uc

ture

as o

f D

ece

mb

er

201

5

Spin - off

61% 61%

As of March 1st,

Endesa Chile and

Endesa Americas

spin-off became

effective.

ARG BR PE COL CHI

Reorganization highlights

Spin-off of Latam assets to Endesa Américas

3



PEHUENCHE, 93%

CELTA, 96%

GASATACAMA, 98%

61%

60%

CHILE

ITALY

CHILE

1 Recognized as equity method investments.

GNL Quintero, 20%

Transquillota ,48%

Electrogas, 43%

GNL Chile, 33%

CHILE1

Organization structure

4

Committed Shareholders

Endesa Chile (after Spin-off)

60% 16%

4%

6%

14% Enersis S.A.

Chilean Pension Funds

ADRs (Citibank N.A.)

Retail

Institutional Investors

http://latam.endesa.com/v2/intranetN2/portada.asp



One of the largest electricity generation companies in Chile. • Proven track record with more than 70 years of experience

Well diversified portfolio of generation assets, including all types of technologies.

• Hydrological assets predominating in the Chilean Central Interconnected System SIC.

• Competitive thermal assets to reduce hydrological risks.

Conservative commercial policy to cope with hydrological risks.

Best investment grade in the region. Stable ratings by credit risk agencies (BBB+)

5

Key investment considerations

Attractive business in Chile

Stable regulatory framework to develop reliable long term business.

More than doubled its installed capacity in the last 20 years.



1:Calculated based on total sales of the country. 6

Well diversified generation assets

Energy sales 1Q16 : 6,025 GWh

Energy sales 1Q15 : 5,716 GWh

Market Share 1 : 35%

55%

10%

34%

1%

HYDRO

COAL

OIL-GAS

NCRE

55% of Endesa Chile’s installed capacity

corresponds to hydro resources

Installed Capacity 6,351 MW

2: Non Conventional Renewable Energy.

Hydro : 3,456 MW

Oil-gas : 2,173 MW

Coal : 636 MW

NCRE 2 : 87 MW

D. Almagro–Taltal

Bocamina LajaMaule

Bio Bío

Tarapaca

Huasco

San Isidro

Los Molles

CachapoalSantiago

Most relevant player in hydro



201 261

311 46

60 54

3

34 25

1Q 2014 1Q 2015 1Q 2016

80%

15%

5%

1 Compared with FY14

Balanced commercial policy

Leading to revenue stability

Physical sales: 6,025 GWh

Spot Unregulated

Customers

7

Regulated

Customers Spot Unregulated

Customers

355

250

Historical revenues by type of customer (Billion Ch$)

390

Chile – Contracted energy with Regulated Customers (GWh)

Physical Sales 1Q16 GWh Change1

REGULATED 4,850 11%

UNREGULATED 882 -18%

SPOT 293 5%

TOTAL 6,025 5%

6,873 7,110 7,180 6,745 7,129 6,795 5,114

7,350 6,883 6,469 5,694 5,597 5,589

4,670

1,673 1,762 1,806 1,775 1,795 1,775

1,811

2,541 2,374 2,309 2,146 824 872

812

2016 2017 2018 2019 2020 2021 2022

Chilectra CGE Chilquinta Saesa

18,437 18,130 17,765

16,361 15,344 15,030

12,407

Regulated

Customers



Ch$ million1 1Q 2016 1Q 2015 Change3 MM US$ 2 1Q 2016

Revenues 415,283 369,804 12% 592

Costs (230,478) (268,740) -14% (329)

Contribution Margin 184,805 101,064 83% 263

EBITDA 157,461 69,530 126% 224

EBIT 125,041 40,144 211% 178

Net Financial Expenses 934 (28,121) -103% 1

Related Company Results 2,452 1,175 109% 3

Taxes (13,436) (5,067) 165% (19)

Net Income 194,646 86,924 124% 277

Attributable to shareholders of Endesa Chile 152,568 39,105 290% 218

1 Under IFRS, Endesa Chile has adopted the Chilean Peso as functional currency, comparisons between periods have been only made using Ch$.

2 Referential average exchange rate was 701,43 Ch$/US$ as of March 31, 2016.

3 When comparing 1Q2016 with 1Q2015

Financial Highlights

Improving results in Chile

8



8 8 8 87

43

1,098

3 3 3

153

3 14 0

100

200

300 400

500

600

700 800

900

1,000

1,100 1,200

< 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond

Bonds Banks and Other

Debt by Type1 Debt by Currency1

1 Includes arrangements and other consolidation adjustments.

Total Debt: US$ 1,431 MM

Financial Debt Maturity1 as of March 2016

Healthy debt maturity profile

9

• Cash: US$ 180 MM

• Committed Credit Lines: US$ 360MM

• Non-Committed Credit Lines: US$ 168 MM

• Average life of debt: 11.7 year

• International Credit Rating: BBB+

Solid financial ratios and investment grade category (BBB+)

US$ 93%

UF + CLP 7%

Others 12%

Bonds 88%



(73)

(44)

183

(99)

213 172

0

50

100

150

200

250

300

350

400

450

Cash and equivalents March-15

Funds from operations Capex Financing activities & Exchange rate effects

Dividend payment Cash and equivalents March-16

1. Referential average exchange rate was 701.43 Ch$/US$ as of March 31, 20156

2. Dividend payment considers cash outflows to Enersis and all minorities’ shareholders.

3. Funds from assets disposal includes sale of Tunel El Melon.

Consolidated Cash Flow Generation (US$million)1

Including discontinued operations

10



Direct relation between GDP and electricity demand

ARGENTINA

AUSTRALIA

AUSTRIA

BOLIVIA

BRAZIL

CANADA

CHILECHINA

COLOMBIA

FINLAND

FRANCE GERMANY

GREECE

INDIA IRELAND

ITALY

JAPAN

MEXICO

PERU

RUSSIA

SPAIN UNITED KINGDOM

UNITED STATES

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

0 10,000 20,000 30,000 40,000 50,000 60,000

Elec

tric

ity c

onsu

mpt

ion,

per

cap

ita (

Kw

h pe

r ye

ar)

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.

Markets with high potential for growth

11

Annual growth of 3.4% in electricity demand in Chile*

* Average for 2005-2015 period.



87% 72%

76% 62% 55% 55%

13%

28%

24%

37% 44%

44%

1%

1% 1%

1995 2000 2005 2010 2016 Under construction

• A well diversified generation matrix incorporating all types of generation technologies (Coal, LNG and NCRE), providing a better position

to cope with the hydrologic risk

• 2% increase in installed capacity through projects under construction.

Los Cóndores 150 MW

GasAtacama 781 MW*

* Capacity added in 2014.

Historical evolution of Endesa Chile’s installed capacity

Endesa Chile has more than doubled its capacity in the last 20 years

2,513

4,035 4,477

5,611

6,351 6,501

12



• Hydro power plant, run of the river.

• Located in San Clemente, in Maule region, Chile.

• 150 MW of installed capacity.

• Estimated generation of 600 GWh/year.

• Estimated load factor: 46%.

• Total CAPEX of US$ 662 million.

• 29% progress as of March, 2016.

Los Cóndores

Projects under construction

13

To support growth of the country



BBB+ Baa2 BBB+

Since:

Affirmed:

Jan. 2010 Apr. 2011 Feb. 2010

Jun. 2015 Dec. 2015 Nov. 2015

AA (cl) AA

Jan. 2010 Apr. 2010

Jun. 2015 Dec. 2015

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

Credit Risk Agencies Recognition

Attractive ratings since 2010

http://www2.standardandpoors.com/portal/site/sp/en/us/page.siteselection/home.jsp

http://www.fitchratings.com/corporate/index.cfm

http://www.fitchratings.com/corporate/index.cfm



Contact us at:

[email protected]

Susana Rey Head of Investor Relations

Enersis Chile (56) 22630 9606

[email protected]

Catalina Gonzalez Head of Investor Relations

Endesa Chile (56) 22630 9603

[email protected]

Guillermo Berguecio Investor Relations Analyst

Endesa Chile (56) 22630 9506

[email protected]

Francisco Basauri Investor Relations Analyst

Endesa Chile (56) 22630 9585

[email protected]

Endesa Chile’s Investor Relations Team

15



EXHIBITS

16



1943 1987 1994 1999 2004 2005 2015

• December 1943, Endesa

Chile is incorporated as a

Stock Company and an

affiliate of the Corporación

de Fomento de la

Producción (CORFO)

• July 1994, Endesa Chile’s stock

begins to trade on the New York

Stock Exchange

•September 2004, Ralco hydroelectric

plant started operations adding 690 MW

of installed capacity to Endesa Chile

•As of December 2015, Endesa Chile and its

subsidiaries 192 electricity units with an installed

capacity of 15,147 MW

• In 1987,the process of privatization begins,

and was completed in 1989 through a series of

public offerings

• May 1999, Enersis S.A. becomes the

majority owner of Endesa Chile • In 2005, the Company incorporates

Endesa Brasil S.A.

17

Endesa Chile’s corporate history

•As of December

2015, ESM held on

December 18, 2015,

approves the first

stage of the

Reorganization

Proposal (Enersis,

Endesa Chile and

Chilectra Spin-Off).



• Chilean EBITDA amounted to 224 million dollars in 1Q16, increasing 126%

• Net income attributable to shareholders rose 290% to 218 million dollars

• Total energy sales rose by 5% in 1Q16

• Improved generation mix (+ 150 GWh hydro generation, + 497 GWh coal generation)

• Credit Rating Agencies have reaffirmed Endesa Chile in BBB+ (stable)

• New companies were constituted on March 1st , 2016

Highlights 1Q16

18



ENDESA CHILE

Million US$ 1Q16 1Q15 Chg %

Revenues 592 533 12%

EBITDA 224 99 126%

EBITDA MARGIN 38% 19% 49.6%

Physical Sales (GWh) 6,025 5,716 5%

1Q16 Results

19



1 : Compared with 1Q15

Installed capacity and energy generation

20

Los Molles: 18 MW

Rapel-Sauzal: 466 MW

Maule: 875 MW

Laja: 940 MW

Ralco-Pangue: 1,157 MW

54% Hydro

3,456 MW

44% Thermal

2,808 MW

GasAtacama 780 MW

Tarapaca 182 MW

D. Almagro–Taltal: 268 MW

Huasco: 64 MW

San Isidro 1 and 2: 778 MW

Bocamina 1 and 2: 478 MW

TG Quintero: 257 MW

2% NCRE1

87 MW

Canela: 18 MW

Canela II: 60 MW

Ojos de Agua: 9 MW

Installed Capacity: 6,351 MW

Market Share*: 31%

Total Generation: 4,573 GWh

Net Generation 1Q16 Gwh Change1

HYDRO 2,460 7%

COAL 738 206%

OIL-GAS 1,336 (21%)

NCRE 39 (2%)

Total 4,573 7%

Historical energy generation by type of technology

* Based on installed capacity

0

1000

2000

3000

4000

5000

6000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2012 2013 2014 2015 2016

CHP / Renewables Oil-Gas Coal Hydro



1Amounts translated into US$ using the exchange rate as of March (Ch$ 669.8 per US$).

*Financial ratio as of March 2016.

Strong financial position

21

(Million Ch$) March 2016 Dec 2015 Chg. Chg % MM US$ 20161

Gross Debt 997.332 945.119 52.213 5% 1.404

Cash 120.384 37.425 82.959 69% 170

Net Debt 876.948 907.694 (30.746) (4%) 1.235

Leverage 1.22x 1.05x 0.17x 16%

Financial Expenses

Coverage (289)X 4.51x - (102%)

ROE (%) 11.8% 14.7% (2.9x) (19.7%)

ROA (%)

7.4% 8.7% (1.3x) (14.9%)



This presentation contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 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 forward-looking 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 Chile undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.

22

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