EX-99.3 4 d485187dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED

FINANCIAL INFORMATION

The following unaudited pro forma condensed consolidated balance sheet as of September 30, 2012 and the unaudited pro forma condensed consolidated statements of income for the year ended December 31, 2011 and the nine months ended September 30, 2012 give effect to (i) the contribution by Endesa Spain to Enersis of all the shares of Cono Sur, which would hold the investments in the Portfolio Companies, in exchange for additional shares of Enersis to be issued to Endesa Spain and (2) the subscription by other shareholders for additional shares of Enersis in the Capital Increase for cash. The pro forma information is based on the historical financial statements of Enersis after giving effect to the transactions and applying the estimates, assumptions and adjustments described in the accompanying notes to the unaudited pro forma condensed consolidated financial information and present the pro forma information assuming the transaction is consummated at a value for the In-Kind Contribution of Ch$1,724,400 million (approximately US$3,640 million based on the exchange rate as of September 30, 2012, of Ch$473.77 per U.S. dollar), as approved at the Extraordinary Shareholders Meeting (“ESM”) held on December 20, 2012.

For pro forma purposes, the unaudited pro forma condensed consolidated balance sheet of Enersis as of September 30, 2012 is presented as if the transaction had occurred on September 30, 2012. The unaudited pro forma condensed consolidated statement of income of Enersis for the year ended December 31, 2011 and the unaudited pro forma condensed consolidated statement of income of Enersis for the nine months ended September 30, 2012, in each case, are presented as if the transaction had occurred on January 1, 2011.

The unaudited pro forma condensed consolidated financial information has been prepared by Enersis management for illustrative purposes and is not intended to represent the condensed consolidated financial position or condensed consolidated results of operations in future periods or what the results actually would have been had Enersis completed the proposed Capital Increase during the specified periods. The unaudited pro forma condensed consolidated financial information and accompanying notes should be read in conjunction with the following information: (1) the historical audited consolidated financial statements of Enersis for the year ended December 31, 2011 and notes thereto included in our Annual Report on Form 20-F for the year ended December 31, 2011, as amended (the “2011 Form 20-F”), (2) the historical unaudited condensed consolidated financial statements of Enersis for the nine months ended September 30, 2012, included as Exhibit 99.1 to this Report on Form 6-K, and (3) “Item 5. Operating and Financial Review and Prospects” included in the 2011 Form 20-F.

 

3-1

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2012

 

(In thousands of Chilean pesos)   Enersis Historical           Adjustments for  
Subscription  for
Shares		     Adjustments for
Consolidation of
Unconsolidated
  Subsidiaries and 
Associates		     Adjustments for
Additional Interests
in  Consolidated
Subsidiaries		     Adjustments for
Intercompany
Eliminations  from
Unconsolidated
Subsidiaries		    

 

Pro Forma
  Consolidated  

        

 

Pro Forma
  Consolidated  

               (1)     (2)     (3)     (4)                (5)
    (Th Ch$)         (Th Ch$)     (Th Ch$)     (Th Ch$)     (Th Ch$)     (Th Ch$)         (Million US$)

ASSETS

                  

CURRENT ASSETS

                  
                 

Cash and cash equivalents

     782,662,802          1,119,997,889        29,461,292        -            -            1,932,121,983        4,078

Other current financial assets

     1,476,171          -            -            -            -            1,476,171        3

Other current non-financial assets

     100,539,038          -            1,418,165        -            -            101,957,203        215

Trade and other current receivables

     837,818,682          -            55,314,037        -            -            893,132,719        1,885

Accounts receivable from related companies

     33,580,107          -            32,286,017        -            (63,051,975 )      2,814,149        6

Inventories

     99,842,426          -            820,821        -            -            100,663,247        212

Current tax assets

     135,212,150          -            19,633,951        -            -            154,846,101        327
                 

TOTAL CURRENT ASSETS    

     1,991,131,376          1,119,997,889        138,934,283        -            (63,051,975 )      3,187,011,573        6,726

NON-CURRENT ASSETS

                  
                 

Other non-current financial assets

     68,864,987          -            -            -            -            68,864,987        145

Other non-current non-financial assets

     88,600,532          -            1,023,575        -            -            89,624,107        189

Non-current receivables

     475,095,840          -            33,396,161        -            -            508,492,001        1,073

Investments accounted for using the equity

method

     12,386,913          -            (2,155,139 )      -            -            10,231,774        22

Intangible assets other than goodwill

     1,146,093,735          -            373,463        -            -            1,146,467,198        2,420

Goodwill

     1,394,213,916          -            -            -            -            1,394,213,916        2,943

Property, plant, and equipment, net

     7,085,450,855          -            109,678,602        -            -            7,195,129,457        15,187

Investment property

     38,331,943          -            -            -            -            38,331,943        81

Deferred tax assets

     445,616,696          -            11,156,958        -            -            456,773,654        964
                 

TOTAL NON-CURRENT ASSETS    

     10,754,655,417          -            153,473,620        -            -            10,908,129,037        23,024
                 

TOTAL ASSETS    

     12,745,786,793          1,119,997,889        292,407,903        -            (63,051,975 )      14,095,140,610        29,750

See notes to the unaudited pro forma condensed consolidated financial information.

 

3-2

(In thousands of Chilean pesos)    Enersis Historical            Adjustments for  
Subscription  for
Shares		      Adjustments for
Consolidation of
Unconsolidated
  Subsidiaries and 
Associates		     Adjustments for
Additional
Interests  in
Consolidated
Subsidiaries		     Adjustments for
Intercompany
Eliminations  from
Unconsolidated
Subsidiaries		    

 

Pro Forma
  Consolidated

         

 

  Pro Forma
    Consolidated

  
                 (1)      (2)     (3)     (4)                 (5)  
     (Th Ch$)          (Th Ch$)      (Th Ch$)     (Th Ch$)     (Th Ch$)     (Th Ch$)          (Million US$)  

CURRENT LIABILITIES

                      
                     

Other current financial liabilities

      642,951,020           -             45,826,803        -            -            688,777,823           1,454   

Trade and other current payables

      977,054,887           -             54,201,775        -            -            1,031,266,662           2,177   

Accounts payable to related companies

      155,553,906           -             79,930,651        -            (63,051,975 )      172,432,582           364   

Other current provisions

      87,342,883           -             -            -            -            87,342,883           184   

Current tax liabilities

      162,109,953           -             12,775,368        -            -            174,885,321           369   

Other current non-financial liabilities

      87,405,538           -             3,405,163        -            -            90,812,801           192   
                     

TOTAL CURRENT LIABILITIES

          2,112,429,287           -             196,140,760        -            (63,051,975 )      2,245,518,072           4,740   

NON-CURRENT LIABILITIES

                      
                     

Other non-current financial liabilities

      2,847,453,200           -             32,136,430        -            -            2,879,589,630           6,078   

Other non-current payables

      12,176,248           -             -            -            -            12,176,248           26   

Other long-term provisions

      199,892,465           -             4,432,956        -            -            204,325,421           431   

Deferred tax liabilities

      547,894,417           -             9,297,058        -            -            557,191,475           1,176   

Non-current provisions for employee benefits

      246,937,212           -             -            -            -            246,937,212           521   

Other non-current non-financial liabilities

      70,382,831           -             5,077,399        -            -            75,450,230           158   
                     

TOTAL NON-CURRENT LIABILITIES

      3,924,736,373           -             50,943,843        -            -            3,975,680,216           8,390   
                     

TOTAL LIABILITIES

      6,037,165,660           -             247,084,603        -            (63,051,975 )      6,221,198,288           13,130   

EQUITY

                      

Issued capital

      2,824,882,835                    -            -            -            2,824,882,835           5,963   

   Increase in capital

      -               1,119,997,889         31,786,140        1,692,613,860          2,844,397,889           6,004   

Retained earnings

      2,343,296,922           -             -            -            -            2,343,296,922           4,946   

Share premium

      158,759,648           -             -            -            -            158,759,648           335   

Other reserves

      (1,530,810,682 )         -             17,075,025        (957,345,126 )      -            (2,471,081,783 )         (5,216 ) 

Equity Attributable to Shareholders of Enersis

      3,796,128,723           1,119,997,889         48,861,165        735,267,734        -            5,700,255,511           12,032   
                     

Non-controlling Interest

      2,912,492,410           -             (3,537,865 )      (735,267,734 )      -            2,173,686,811           4,588   
                     

TOTAL EQUITY

      6,708,621,133           1,119,997,889         45,323,300        -            -            7,873,942,322           16,620   
                     

TOTAL LIABILITIES AND EQUITY

      12,745,786,793           1,119,997,889         292,407,903        -            (63,051,975 )      14,095,140,610           29,750   

See notes to the unaudited pro forma condensed consolidated financial information.

 

3-3

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2011

 

     Enersis Historical          

  Adjustments for  
Subscription for

Shares

     

Adjustments for
Consolidation of
Unconsolidated
 Subsidiaries and 

Associates

      Adjustments for
Additional interests
in  Consolidated
Subsidiaries		      Adjustments for
Intercompany
Eliminations  from
Unconsolidated
Subsidiaries		     

 

  Pro Forma
  Consolidated

         

 

Pro Forma
  Consolidated  

  
                  (1)      (2)      (3)      (4)                  (5)  
(In thousands of Chilean pesos]    (Th Ch$)           (Th Ch$)      (Th Ch$)      (Th Ch$]      (Th Ch$)      (Th Ch$)          (Million US$)  
                         

Sales

      6,254,252,089            -             223,231,472         -         (13,769,806)         6,463,713,755           13,643   

Other operating income

      280,628,255            -             3,087,073         -         (66,250)         283,649,078           599   

Total Revenues

      6,534,880,344            -             226,318,545         -         (13,836,056)         6,747,362,833           14,242   
                         

Raw materials and consumable used

      (3,538,434,729)            -             (150,189,789)         -         13,614,133         (3,675,010,385)           (7,757)   

Contribution Margin

      2,996,445,615            -             76,128,756         -         (221,923)         3,072,352,448           6,485   
                         

Other work performed by the entity and

capitalized

      50,173,112            -             -         -         -             50,173,112           106   

Employee benefits expenses

      (378,552,126)            -             (6,797,728)         -         -             (385,349,854)           (813)   

Depreciation and amortization expense

      (424,900,036)            -             (7,538,774)         -         -             (432,438,810)           (913)   

Reversal of impairment loss (Impairment loss)

recognized in the year’s profit or loss

      (136,157,459)            -             220,508         -         -             (135,936,951)           (287)   

Other expenses

      (540,698,397)            -             (12,262,078)         -         221,923         (552,738,552)           (1,167)   

Operating Income

      1,566,310,709            -             49,750,684         -         -             1,616,061,393           3,411   
                         

Other gains (losses)

      (4,814,294)            -             22,574         -         -             (4,791,720)           (10)   

Financial Income

      233,612,869            -             2,607,359         -         -             236,220,228           499   

Financial costs

      (465,411,363)            -             (5,774,587)         -         -             (471,185,950)           (995)   

Share of profit (loss) of associates accounted for

using the equity method

      8,465,904            -             (249,673)         -         -             8,216,231           17   

Share of profit (loss) of associates accounted for

using the equity

      -            -             113,218         -         -             113,218           -       

Foreign currency exchange differences

      20,305,690            -             (6,331,397)         -         -             13,974,293           29   

Profit (loss) from indexed assets and liabilities

      (25,092,203)            -             -         -         -             (25,092,203)           (53)   
                         

Net income before tax

      1,333,377,312            -             40,138,178         -         -             1,373,515,490           2,898   

Income tax

      (460,836,692)            -             (13,702,209)         -         -             (474,538,901)           (1,002)   

Net Income from continuing operations

      872,540,620            -             26,435,969         -         -             898,976,589           1,896   

Net income from discontinued operations

      -            -             -         -         -             -           -       

NET INCOME

      872,540,620            -             26,435,969         -         -             898,976,589           1,896   

 

Net Income attributable to

                          

Shareholders of Enersis

      375,471,254            -             18,817,057         141,276,053         -             535,564,364           1,130   

Non-controlling interests

      497,069,366            -             7,618,912         (141,276,053)         -             363,412,225           767   

NET INCOME

      872,540,620            -             26,435,969         -         -             898,976,589           1,897   
                         

Basic earnings per share (6)

                          
                         

Basic earnings per share

      11.50            -             102.41         14.44         -             10.91        

See notes to the unaudited pro forma condensed consolidated financial information.

 

3-4

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012

 

     Enersis Historical            Adjustments for  
Subscription  for
Shares		      Adjustments for
Consolidation of
Unconsolidated
  Subsidiaries and 
Associates		    

Adjustments for
Additional interests

in Consolidated
Subsidiaries

     Adjustments for
Intercompany
Eliminations  from
Unconsolidated
Subsidiaries		    

 

Pro Forma
  Consolidated

         

 

  Pro Forma
    Consolidated

  
                 (1)      (2)     (3)     (4)                 (5)  
(In thousands of Chilean pesos)    (Th Ch$)                 (Th Ch$)     (Th Ch$)     (Th Ch$)     (Th Ch$)          (Million US$)  
                     

Sales

      4,713,328,305           -             136,495,954        -            (7,639,867 )      4,842,184,392           10,221   

Other operating Income

      132,982,245           -             76,992        -            (219,286 )      182,839,951           386   

Total Revenues

      4,896,310,550           -             136,572,946        -            (7,859,153 )      5,025,024,343           10,607   
                     

Raw materials and consumables used

      (2,775,881,439 )         -             (105,564,285 )      -            7,337,525        (2,874,108,199 )         (6,066 ) 

Contribution Margin

      2,120,429,111           -             31,008,661        -            (521,628 )      2,150,916,144           4,541   
                     

Other work performed by the entry and capitalized

      36,027,420           -             484,551        -            -            36,511,971           77   

Employee benefits expenses

      (302,481,117 )         -             (5,853,763 )      -            -            (308,334,880 )         (651 ) 

Depreciation and amortization expense

      (331,391,644 )         -             (5,215,688 )      -            -            (336,607,332 )         (710 ) 

Reversal of impairment loss (Impairment loss)

recognized in the year’s profit or loss

      (22,722,131 )         -             32,396        -            -            (22,689,735 )         (48 ) 

Other expenses

      (372,851,904 )         -             (7,691,801 )      -            521,628        (380,022,077 )         (802 ) 

Operating Income

      1,127,009,735           -             12,764,356        -            -            1,139,774,091           2,407   
                     

Other gains (losses)

      4,199,142           -             47,693        -            -            4,246,835           9   

Financial income

      122,016,539           -             1,492,168        -            -            123,508,707           261   

Financial Costs

      (338,726,474 )         -             (5,560,005 )      -            -            (344,286,479 )         (727 ) 

Share of profit (loss) of associates accounted for

using the equity method

     7,754,143           -             (26,041 )      -            -            7,728,102           16   

Share of profit (loss) or associates accounted for

using the equity method

     -           -             76,642        -            -            76,642           -       

Foreign currency exchange differences

      (14,017,076 )         -             (7,362,124 )      -            -            (21,379,200 )         (45 ) 

Profit (loss) from indexed assets and liabilities

      (6,876,024 )         -             -            -            -            (6,876,024 )         (15 ) 
                     

Net income before tax

      901,359,985           -             1,432,689        -            -            902,792,674           1,906   

Income tax

      (266,950,568 )         -             (687,861 )      -            -            (267,538,429 )         (565 ) 

Net Income from continuing operations

      634,409,417           -             744,828        -            -            635,154,245           1,341   

Net income from discontinued operations

                 -             -            -            -            -               -       

NET INCOME

      634,409,417           -             744,828        -            -            635,154,245           1,341   

Net income attributable to

                            

Shareholders of Enersis

      264,557,423           -             5,013,520        119,362,189        -            388,933,132           821   

Non-controlling interests

      359,851,994           -             (4,268,692 )      (119,362,189 )      -            246,221,113           520   

NET INCOME

      634,409,417           -             744,828        -            -            635,154,245           1,341   
                     

Basic earnings per share (6)

                      
                     

Basic earnings per share

      8.10           -             27.29        12.20        -            7.92        

See notes to the unaudited pro forma condensed consolidated financial information.

 

3-5

Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements

A.     Basis of Presentation

Contribution of Portfolio Companies’ Share Interests

In the preparation of the unaudited pro forma condensed consolidated balance sheet as of September 30, 2012, it was assumed that the total amount of the Capital Increase would be the amount of Ch$2,844,398 million as approved by shareholders at the ESM of the Company held on December 20, 2012. It is assumed that each of the shareholders contributes to the Capital Increase in proportion to its ownership interest in the Company, and that the share participation that Endesa Spain would contribute in the Capital Increase would be valued at approximately US$3.640 million, which at the exchange rate as of September 30, 2012 (Ch$473.77 per U.S. dollar) equals Ch$1,724,400 million.

For purposes of allocating the above-mentioned value of the In-Kind Contribution in connection with the accounting treatment for non-monetary contributions described below to each of the Portfolio Companies involved in Endesa Spain’s In-Kind Contribution, the average of the weights allocated by each of the three appraisers to each of the Portfolio Companies involved in the valuations was used.

Cash contribution

For the preparation of the unaudited pro forma condensed consolidated balance sheet as of September 30, 2012, it was assumed that the shareholders other than Endesa Spain had subscribed for the shares that would correspond to them in cash (approximately US$2,364 million, or Ch$1,119,998 million), based on the assumed value of the In-Kind Contribution described under “Contribution of Portfolio Companies’ Share Interests” above.

Price of the shares

The unaudited pro forma condensed consolidated financial statements were prepared using the per share subscription price approved by shareholders at the ESM held on December 20, 2012 of Ch$173.

Earnings per share

To determine the pro forma basic earnings per share information in the unaudited pro forma condensed consolidated statement of income for the year ended December 31, 2011 and the nine months ended September 30, 2012, the contribution of the Portfolio Companies’ shares has been considered as an increase in the number of shares issued. In accordance with SEC rules on pro forma information, the increase in the number of shares issued due to the cash contribution has not been taken into account in the earnings per share calculation shown on the unaudited pro forma condensed consolidated statements of income.

Accounting treatment for non-monetary contributions:

 

  a) Contributions of interests in companies currently controlled, directly or indirectly, by Enersis

These contributions were recorded in accordance with the provisions of the International Accounting Standard No. 27 (2008) “Consolidated Financial Statements”, which provides that an increase in the participation in companies which the Company already controls shall be deemed as an equity transaction. This means that the book value of assets and liabilities that are already recorded will not be modified, even if the reasonable value of the transaction differs from them. The acquired non-controlled ownership interests consider the proportion that they represent in the equity of such subsidiary according to the book value consolidated in the Company’s financial statements.

 

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The difference between the book value and the economic value of the non-controlled ownership interests considered, is directly reflected in Other Reserves in Equity Attributable to Shareholders of Enersis.

 

  b) Contribution of participation in companies currently either controlled by or with a significant influence from Endesa Spain, which Enersis currently does not control or participate in.

For accounting purposes, these contributions are deemed to be a transaction between entities controlled by the same company, given that these contributions are made by Endesa Spain, which is the parent company of Enersis. Enersis applies the “pooling of interest” method to record this type of transaction, which requires it to maintain the book value of the assets and liabilities contributed to the consolidation and to reflect any difference in Other Reserves in Equity Attributable to Shareholders of Enersis.

The difference between the book value of the net assets that are incorporated to the consolidation arising from this contribution, and the value of the consideration transferred that corresponds to the shares that will be issued in exchange to the economic value considered, is directly reflected in Other Reserves in Equity Attributable to Shareholders of Enersis.

 

  B. Pro Forma Adjustments

 

  (1) Adjustments for Subscription for Shares: Reflects the amount of the Capital Increase of US$2,364 million, or Ch$1,119,998 million, that the shareholders can subscribe for in cash (at the exchange rate as of September 30, 2012).

 

  (2) Adjustments for Consolidation of Unconsolidated Subsidiaries and Associates: Reflects the contribution of US$67 million, or Ch$31,786 million, that would be made by Endesa Spain in the form of the ownership interests in companies which Enersis currently does not control or consolidate. The ownership interests after the contribution are the following: Empresa Eléctrica Cabo Blanco S.A.C. (80%), Generalima SAC S.A. (100%), Inversora Dock Sud S.A. (57.14%), Endesa Cemsa S.A. (55%) and Yacylec S.A. (22.22%).

 

  (3) Adjustments for Additional Interests in Consolidated Subsidiaries: Reflects the contribution of US$3,573 million, or Ch$1,692,614 million, that would be made by Endesa Spain in the form of the ownership interests in companies which Enersis currently controls and consolidates. The ownership interests after the contribution are the following: Endesa Brasil S.A. (28.48%), Ampla Energía e Serviços S.A. (7.7%), Ampla Investimentos e Serviços S.A. (7.7%), Emgesa S.A. ESP (21.6%), Codensa S.A. ESP (26.7%), Compañía Eléctrica San Isidro S.A. (4.4%), Inversiones Distrilima S.A.C. (34.83%) and Empresa Distribuidora Sur S.A. (6.2%).

 

  (4) Adjustments for Intercompany Eliminations from Unconsolidated Subsidiaries: Reflects the eliminations for intercompany transactions between the Portfolio Companies that are being consolidated into Enersis’ consolidated financial statements as a result of the In-Kind Contribution and the companies that were historically part of Enersis’ consolidated group.

 

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Pro Forma Consolidated: For the conversion of amounts in the unaudited pro forma condensed consolidated financial statements to U.S. dollars, the closing exchange rate on September 30, 2012 of Ch$473.77 per U.S. dollar was used.

 

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