6-K 1 enipr2q09_6k.htm CONSOLIDATED RESULTS FIRST HALF 2009 Provided by MZ Technologies

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of July, 2009

Commission File Number: 001-12440

ENERSIS S.A.

(Translation of Registrant’s Name into English)

Santa Rosa 76
Santiago, Chile

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  [X]   Form 40-F  [   ]

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes    [  ]      No    [X]

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes    [  ]      No    [X]

Indicate by check mark whether by furnishing the information
ontained in this Form, the Registrant is also thereby furnishing the
information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes    [  ]      No    [X]

If °;Yes” is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A

 

PRESS RELEASE
First Half 2009
 


ENERSIS
ANNOUNCES CONSOLIDATED RESULTS
FOR FIRST SEMESTER ENDED JUNE 30th, 2009


These Financial Statements have been prepared under IFRS.
There are important changes in the accounting principles used for these financial statements,
which have been authorized by the Superintendence of Securities and Insurance
as part of the migration from Chilean Generally Accepted Accounting Principles to IFRS.


Figures as of June 2008 have been reconciled under IFRS for comparable purposes.

HIGHLIGHTS FOR THE PERIOD

SUMMARY

For the six months ended on June 30, 2009, Enersis’ Net Income was Ch$360.906 million, an increase of 46.0% with respect to the same period in 2008.

This better outcome is mainly explained by the increase in energy sales and lower purchases of fuel and other operating expenses, which implied a 15.2% higher Gross Income (before SG&A expenses).

This higher operating profitability has been achieved in the context of a medium term strategy consistently applied to shorter term specific policies. Enersis has been quickly adapting itself to an unstable, challenging and still recessive environment.

As a consequence of the strategy applied and the policies implemented, the analysis is as follows:

1.- Improve profitability:

Management has required all subsidiaries to optimize the use of funds through the correct implementation of commercial and operating policies, with the goal of confronting adequately the difficult market conditions. The results are as follows:

• Operating Revenues increased 3.5% higher, an increase of Ch$107,869 million, amounting to Ch$3,176,647 million for the six months ended June 30, 2009.

• EBITDA increased by 16.9% or Ch$175,575 million, amounting to Ch$1,213,571 million.

• As mentioned above, Operating Income rose 20.4%, or Ch$167,980 million up to Ch$ 992,575 million, basically explained by the performance of the Generation Business Segment.

2.- Maintain a solid financial position:

Enersis continues to tightly supervise and control its subsidiaries in the five countries in which it operates. In this current economic scenario, the goal is to count with enough liquidity, and with the ability to confront challenges and opportunities in the region. In this context, it is noteworthy to highlight the following indicators:

Pg. 1

PRESS RELEASE
First Half 2009 
 

• Interest Coverage increased 17.3%, to 5.5 times.

• Liquidity improved significantly: cash and cash equivalent increased 17.2%, reaching Ch$1,224,695 million as of June 2009.

3.- Provide the best service quality in Latin-America:

• An example of our constant concern to provide the best service in the different concession areas was the award received by Coelce, in Fortaleza, Brazil. On July 7th, 2009, Coelce was distinguished as the “Best Distribution Company in Brazil” by “Associação Brasileira de Distribuidoras de Energia Elétrica”.

4.- Add value to our shareholders:

• Enersis share price, for the last twelve months, increased 21.3% from Ch$162.71 to Ch$197.42 which implies a better return than the IPSA (Local Stock Exchange Index), which increased 3.0% during the same period, and other major Stock Exchange Indexes in Latam and in the world.

• Annualized ROE increased 31.0%, from 17.0% as of June 2008 to 22.3% as of June 2009.

GENERATION AND TRANSMISSION BUSINESSES

• Operating Income increased 42.1% mainly explained by the performance of the operations in Chile, and to a lower degree, in Colombia and Peru, due to the better production mix as a consequence of the favorable hydrological conditions.

• Physical sales increased by 6.5%, amounting 33,367 GWh.

DISTRIBUTION BUSINESS

• Operating Revenues grew 5.5%, equivalent to Ch$104,513 million.

• Operating Income decreased by Ch$16,719 million, or 4.3%, to Ch$369,650 million, and is explained primarily by reductions in our subsidiaries in Brazil, Colombia and Chile, partly offset by increases in Peru and Argentina.

• Consolidated physical sales were in line with the previous period, amounting to 31,148 GWh.

• There were 415,000 new clients over the last twelve months. This is equivalent to add a new mid size Distribution Company every year. They broken down as follows:

  • Brazil 4.1% or 210 thousand new clients 
  • Colombia 3.6% or   80 thousand new clients 
  • Chile 3.3% or   50 thousand new clients 
  • Peru 3.8% or   38 thousand new clients 
  • Argentina 1.6% or 37 thousand new clients 

• Energy losses decreased by 10.8% .

Pg. 2

PRESS RELEASE
First Half 2009 
 

FINANCIALS

• Liquidity, a key consideration in our financial management, continues to be in a very solid position, as evidenced below:

  • Credit Lines for US$440 million available in the aggregate for Enersis and Endesa Chile in the Chilean capital markets, and an additional US$800 million in undrawn revolving debt facilities in the international capital markets.

  • Cash and Cash Equivalents amount to the equivalent of US$1,781 million.

• Debt maturities are comfortably spread out, as can be seen in the following schedule:

 
Million US$                                TOTAL 
     
    2009    2010    2011    2012    2013    2014    Balance     
 
Chile    100    213    116    11    223    368    863    1,894 
 
Argentina    42    69    56    18    14    8    0    206 
 
Peru    29    47    67    79    50    49    81    402 
 
Brazil    68    242    217    211    69    29    27    863 
 
Colombia    95    190    95    89    42    79    292    884 
 
TOTAL    334    762    551    408    398    533    1,263    4,249 
 
* Includes accrued interest of financial debt only. 

  • Despite the difficult financial situation prevailing in the markets, the Enersis Group has refinanced debt coming due during the first semester and there are no difficulties foreseen in refinancing the upcoming debt maturities with our access to banks and capital markets.

  • The positive perspective that the financial markets have on the Chilean-sourced liquidity for Enersis and Endesa Chile, was evidenced by the overwhelming approval from the bondholders to Yankee Bond consent solicitations ended on July 24, 2009, for notes representing over US$ 1.5 billion in the aggregate.

• Coverage and Protection

Enersis continued applying a rigorous control over its liquidity for all its subsidiaries. In that respect, and in addition to strict internal rules to protect our cash flows, balance sheet, and liquidity, we currently have:

  • Cross Currency Swaps for a total amount of US$ 929 million to match currency in which cash flows are originated and their associated debt.

  • Interest Rate Swaps for US$ 212 million, in order to provide protection against variations.

  • Collars, for a value of US$ 150 million, intended to provide additional protection.

  • Forwards, for US$ 53 million, to protect against foreign exchange rate variations.

Pg. 3

PRESS RELEASE
First Half 2009 
 

The aforementioned financial tools are being permanently evaluated and adjusted to the changing macroeconomic scenario, in order to achieve the most efficient levels of protection. These instruments, however, do not replace the most important reason behind our liquidity: the very stable nature of our business.

MARKET SUMMARY

• In the chart below we show the evolution of the Enersis ADR price versus de Dow Jones Industrial Index (red), the Nasdaq Index (green) and the Standard & Poor´s 500 Index (orange), three indicators that reflect the evolution of prices in the U.S. markets.

• With respect to the stock price variations in the local market during the first semester of 2009, Enersis continued showing a positive trend following the tendency of the Chilean market. Although in a six-month horizon, the Enersis stock price has increased less than the Chilean exchange indices, over a 12-month horizon, the opposite is true, as explained above.

• In addition, during this year, Enersis and its subsidiary Endesa Chile, continued to be among the most traded companies at the Santiago Stock Exchange.

Pg. 4

PRESS RELEASE
First Half 2009 
 


 
Top Ten Traded Santiago Stock Exchange, Jan - Jun 2009
 
    Amounts in Ch$ million   
% 
 
D&S    2,269,341,098    20.90 
SQM-B    1,320,384,079    12.16 
CAP    590,218,932    5.43 
ENDESA    586,864,393    5.40 
ENERSIS    548,382,160    5.05 
CENCOSUD    415,855,305    3.83 
COPEC    345,415,035    3.18 
LA POLAR    332,489,269    3.06 
LAN    304,103,748    2.80 
GENER    302,627,848    2.79 
 
Source: Santiago Stock Exchange     

RISK RATING CLASSIFICATION INFORMATION

During this semester, we had our scheduled informative meetings with the rating agencies. In this occasion, besides to revisit the overall conditions of the Company, we illustrated them about the accounting changes derived from migrating from Chilean GAAP to IFRS.

In this way, we clarified that there were no changes at all over our fundamentals, or upon our core business. Moreover, the fact of having our financials accounted under IFRS, will ease the comparative analysis with a wider world wide benchmark, favoring the analysts work.

Also, another positive consequence is that from a pure quantitative point of view, the majority of our key indicators improve, while the quality of the information is now less biased by several adjustments done in the past to reconcile five different GAAP´s.

Notwithstanding the improvement of the key indicators, rating agencies have not yet adjusted the classification for the company. Agencies are in internal discussions with respect to the IFRS valuation methodology for Chilean companies.

During the second half, we expect rating agencies to reevaluate our rating risk classification, considering the sustained financial strength of the Company.

The current risk classifications are:

• International Ratings:

 
Enersis    S&P    Moody’s    Fitch 
 
Corporate    BBB, Stable    Baa3, Stable    BBB, Stable 
 

• Domestic Ratings (for securities issued in Chile):

 
Enersis    Feller Rate    Fitch 
 
Shares    1st Class Level 1    1st Class Level 1 
 
Bonds    AA-, Stable    AA-, Stable 
 

Pg. 5

PRESS RELEASE
First Half 2009 
 

TABLE OF CONTENTS

HIGHLIGHTS FOR THE PERIOD    1 
     Summary    1 
     Generation and Transmission Businesses    2 
     Distribution Business    2 
     Financials    2 
     Market Summary    4 
     Risk Rating Classification Information    5 
TABLE OF CONTENTS    6 
 
GENERAL INFORMATION    8 
     
     SIMPLIFIED ORGANIZATIONAL STRUCTURE    8 
     
MARKET INFORMATION    9 
     
     EQUITY MARKET    9 
     DEBT MARKET    11 
     
RISK RATING CLASSIFICATION    12 
 
CONSOLIDATED INCOME STATEMENT ANALYSIS    13 
     
     NET INCOME    13 
     UNDER IFRS    13 
     OPERATING INCOME    14 
     FINANCIAL RESULT    16 
     TAXES    16 
 
CONSOLIDATED BALANCE SHEET ANALYSIS    17 
 
     ASSETS UNDER IFRS    17 
     LIABILITIES AND SHAREHOLDERS EQUITY UNDER IFRS    18 
     DEBT MATURITY WITH THIRD PARTIES, MILLION CH$    21 
     DEBT MATURITY WITH THIRD PARTIES, THOUSAND US$    21 
     EVOLUTION OF KEY FINANCIAL RATIOS    22 
     
CONSOLIDATED STATEMENTS OF CASH FLOWS ANALYSIS    23 
     
     CASH FLOW RECEIVED FROM FOREIGN SUBSIDIARIES BY ENERSIS, CHILECTRA AND ENDESA CHILE    25 
     CAPEX AND DEPRECIATION    25 
     
THE PRINCIPAL RISKS ASSOCIATED TO THE ACTIVITIES OF THE ENERSIS GROUP    26 
 
BOOK VALUE AND ECONOMIC VALUE OF ASSETS    31 

Pg. 6

PRESS RELEASE
First Half 2009 
 

ARGENTINA    32 
     GENERATION    32 
     Endesa Costanera    32 
     Chocón    33 
     DISTRIBUTION    34 
     Edesur    34 
BRAZIL    35 
     GENERATION    35 
     Cachoeira    35 
     Endesa Fortaleza    35 
     TRANSMISSION    36 
     CIEN    36 
     DISTRIBUTION    37 
     Ampla    37 
     Coelce    38 
CHILE    39 
     GENERATION    39 
     Endesa Chile    39 
     DISTRIBUTION    40 
     Chilectra    40 
COLOMBIA    42 
     GENERATION    42 
     Emgesa    42 
     DISTRIBUTION    43 
     Codensa    43 
PERU    44 
     GENERATION    44 
     Edegel    44 
     DISTRIBUTION    45 
     Edelnor    45 
CONFERENCE CALL INVITATION    46 
     CONTACT INFORMATION    47 
     DISCLAIMER    47 

Pg. 7

PRESS RELEASE
First Half 2009 
 

GENERAL INFORMATION

(Santiago, Chile, Wednesday 29th, July 2009) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for the first half ended on June 30th, 2009. All figures are in Ch$, under International Financial Reporting Standards (IFRS). Variations of Income Statements and cash flows refer to the fiscal periods as of June 30th, 2008 and June 30th, 2009, while variations of balance sheet accounts refer to the period between December 31st, 2008 and June 30th, 2009.

Figures as of June 30th, 2009 are additionally presented in US$ and they are merely offered as a convenience translation, using the exchange rate of US$1 = Ch$531.76 (June 30, 2009).

The consolidation includes the following investment vehicles and companies,
a) In Chile: Endesa Chile (NYSE: EOC)*, Chilectra, Synapsis, CAM, and Inmobiliaria Manso de Velasco.
b) Outside Chile: Distrilima (Peru), Endesa Brasil (Brazil)**, Edesur (Argentina) and Codensa (Colombia).

In the following pages you will find a detailed analysis of financial statements, a brief explanation for most important variations and comments on main items in the Balance Sheet, P&L, and Cash Flow Statements compared to the information as of June 30th, 2008.

* Includes Endesa Chile Chilean subsidiaries (Celta, Pangue, Pehuenche, San Isidro, Túnel El Melón), non Chilean subsidiaries (Costanera, El Chocón, Edegel and Emgesa) and jointly controlled companies or associates companies (Gas Atacama, Trasquillota and HidroAysén).

** Includes Endesa Fortaleza, CIEN, Cachoeira Dourada, Ampla and Coelce.

SIMPLIFIED ORGANIZATIONAL STRUCTURE

Pg. 8

PRESS RELEASE
First Half 2009 
 

MARKET INFORMATION

EQUITY MARKET

New York Stock Exchange (NYSE)

The chart below shows the performance of Enersis’ ADR (“ENI”) price at the NYSE, compared to the Dow Jones Industrials and the Dow Jones Utilities indexes over the last 12 months:




Santiago Stock Exchange (BCS)

The chart below shows the performance of Enersis’ Chilean stock price over the last 12 months compared to the selective Chilean selective Stock Index (IPSA):


Pg. 9

PRESS RELEASE
First Half 2009 
 


Madrid Stock Exchange (Latibex) - Spain

The chart below, shows Enersis’ share price (“XENI”) at the Latibex over the last 12 months compared to the Local Stock Index (IBEX):




Pg. 10

PRESS RELEASE
First Half 2009
 

 

DEBT MARKET

Yankee Bonds Price Evolution

The following chart shows the pricing of our Yankee Bonds over the last twelve months compared to the Ishares Iboxx Investment Grade Corporate Bond Fund Index:


(*) IShares Iboxx Corporate Investment Grade Bonds Fund is an exchange traded fund incorporated in the U.S.A. The Index measures the performance of a fixed number of investment grade corporate bonds.

Yankee Bond Consent

The positive perspective that the financial markets have on the Chilean sourced liquidity for Enersis and Endesa Chile, was evidenced by the overwhelming approval from the bondholders to Yankee Bond consent solicitations ended on July 24, 2009.

Enersis and Endesa Chile executed amendments to Sections 501 (4), (5) and (6) of their respective Yankee Bond indentures, for notes representing over US$ 1.5 billion in the aggregate. These sections of the Indenture, the clauses dealing with potential cross default, bankruptcy and insolvency proceedings, now leave Yankee Bond debt issued at the Enersis and Endesa Chile level with no potential default triggers arising from debt outside Chile.

Pg. 11

PRESS RELEASE
First Half 2009
 

RISK RATING CLASSIFICATION

Fitch: BBB / Stable
Rationale (April 15, 2009); “Relevant classification factors are: (i) Geographical diversification in Latin America, which provides natural protection against different regulatory frameworks and weather conditions. In summary, Enersis’ subsidiaries are financially strong and they count on leadership positions within their markets; (ii) Stable Cash Flows from Distribution segment: this business benefits from a healthy and organic growth in annual terms, being Chilectra the most predictable one; (iii) Volatility of business is offset: Contractual position of the Company reduces risk related to dryer hydrological conditions, meanwhile diversified generation matrix and geographical diversity provide natural protection.”

Standard & Poor’s: BBB / Stable
Rationale (December 30, 2008); “The 'BBB' ratings on Chile-based electricity provider Enersis S.A. reflects its satisfactory business risk profile resulting from the strong creditworthiness of its Chilean investments, its solid competitive position in the countries where it operates (Argentina, Brazil, Chile, Colombia, and Peru), and the favorable economic conditions and growing demand for power in the region. These factors are partly offset by the higher risk of its non-Chilean investments and the exposure of its 60%-owned subsidiary, Empresa Nacional de Electricidad S.A. (Endesa Chile; BBB/Stable/--) to droughts. In addition, the ratings reflect Enersis' intermediate financial risk profile resulting from its moderate leverage, adequate debt service coverage, manageable interest rate and foreign exchange risks, and adequate liquidity and financial flexibility.”

Moody’s: Baa3 / Stable
Rationale (December 19, 2008); “Enersis' Baa3 senior unsecured rating reflects the benefits of the group's activities in both the generation and distribution businesses, which offsets to some degree overall business risk. The rating also considers Enersis' significant exposure to the Chilean electricity market, where it benefits from stable macroeconomic conditions (A2 Foreign Currency, A1 Local Currency rating) as well as a transparent and favorable regulatory framework for its distribution and generation activities. The rating also incorporates the geographic and operational diversification of its subsidiaries' operations in four other Latin American countries, where (as in Chile) growing demand is expected amid tighter supply and improving macroeconomic and regulatory conditions.”

Feller Rate: Bonds: AA- / Stable - Shares: 1st Class Level 1
Rationale (July 7, 2009); “Ratings assigned to solvency, bonds and shares of Enersis reflect the good business’ structure of the company, which combined participations in generation and distribution with an important presence in several countries in Latin America, maintaining a higher proportion of its cash flow generation capacity in Chile. Likewise, the rating considers its current financial profile with debt coverage indicators and leverage at a consolidated level which have been strengthened over time.”

Fitch Chile: Bonds: AA- / Stable - Shares: 1st Class Level 1
Rationale (April 15, 2009); “Relevant classification factors are: (i) Geographical diversification in Latin America, which provides natural protection against different regulatory frameworks and weather conditions. In summary, Enersis’ subsidiaries are financially strong and they count on leadership positions within their markets; (ii) Stable Cash Flows from Distribution segment: this business benefits from a healthy and organic growth in annual terms, being Chilectra the most predictable one; (iii) Volatility of business is offset: Contractual position of the Company reduces risk related to dryer hydrological conditions, meanwhile diversified generation matrix and geographical diversity provide natural protection.”

Pg. 12

PRESS RELEASE
First Half 2009
 

CONSOLIDATED INCOME STATEMENT ANALYSIS
(Figures in Ch$)

NET INCOME

Enersis’ Net Income for the first half 2009 was Ch$360,906 million, representing an important 46.0% increase over the previous year, which was Ch$247,242 million.

UNDER IFRS

Table 2                   
                 
CONS. INCOME STATEMENT        Million Ch$        Thousand US$ 
                 
   2Q08   2Q09    6M 08  6M 09  Var 08-09  Chg %    6M09 
                 
         Sales  1,680,685  1,537,991    2,982,745  3,086,919  104,174  3.5%    5,805,099 
                     Sales of Energy  1,542,329  1,399,863    2,753,721  2,820,566  66,845  2.4%    5,304,208 
                     Other Sales  13,084  13,203    23,007  22,588  (419) (1.8%)   42,478 
                     Other services supply  125,272  124,925    206,017  243,766  37,749  18.3%    458,413 
         Other Operating Revenues  34,387  51,829    86,033  89,728  3,695  4.3%    168,737 
                 
Operating Revenues  1,715,072  1,589,819    3,068,778  3,176,647  107,869  3.5%    5,973,836 
                 
         Energy purchases  (465,458) (402,595)   (841,774) (834,602) 7,172  0.9%    (1,569,509)
         Fuel procurement costs  (259,440) (174,795)   (466,149) (356,328) 109,821  23.6%    (670,091)
         Transmission expenses  (66,945) (61,760)   (139,475) (139,289) 186  0.1%    (261,939)
         Other purchases and services  (130,762) (121,668)   (228,032) (241,761) (13,729) (6.0%)   (454,643)
                 
Purchases and Services  (922,605) (760,818)   (1,675,429) (1,571,980) 103,449  6.2%    (2,956,182)
                 
Gross Income  792,468  829,001    1,393,348  1,604,667  211,319  15.2%    3,017,653 
                 
         Work Performed by the entity and capitalized  9,767  6,763    15,269  14,476  (793) (5.2%)   27,223 
         Personnel expenses  (92,280) (88,623)   (163,526) (177,469) (13,943) (8.5%)   (333,739)
         Other fixed operating expenses  (109,310) (104,867)   (207,095) (228,103) (21,008) (10.1%)   (428,959)
                 
Gross Operating Income (EBITDA) 600,645  642,274    1,037,996  1,213,571  175,575  16.9%    2,282,179 
                 
         Depreciations & Amortizations  (114,282) (113,948)   (213,401) (220,996) (7,595) (3.6%)   (415,593)
                 
Operating Income  486,363  528,327    824,595  992,575  167,980  20.4%    1,866,585 
                 
Financial Result  (48,017) (71,347)   (151,875) (156,134) (4,259) (2.8%)   (293,617)
                 
         Interest Revenues  40,944  29,528    69,265  64,504  (4,761) (6.9%)   121,302 
         Interest Expenses  (135,565) (111,096)   (232,182) (217,826) 14,356  6.2%    (409,631)
         Income for Readjustment items  (12,526) 934    (20,473) 21,346  41,819  -    40,141 
         Exchange Gains (Losses) 59,130  9,288    31,515  (24,157) (55,672) (176.7%)   (45,429)
                     Positive  36,299  21,577    58,915  34,300  (24,615) (41.8%)   64,502 
                     Negative  22,831  (11,379)   (25,253) (56,797) (31,544) (124.9%)   (106,809)
                     Effect of Derivatives in Exchange                 
                     Gains (Losses) -  (911)   (2,146) (1,661) 485  22.6%    (3,123)
Share of profit of associates  59  485    1,235  1,627  392  31.7%    3,059 
Income from Other Investments  (37) 1,810    43  1,799  1,756  -    3,383 
Income from asset sales  504  187    989  203  (786) (79.5%)   381 
                 
Net Income before Taxes  438,872  459,463    674,988  840,070  165,082  24.5%    1,579,792 
                 
         Income Tax  (119,719) (77,276)   (160,811) (149,063) 11,748  7.3%    (280,320)
                 
NET INCOME  319,152  382,187    514,176  691,007  176,831  34.4%    1,299,472 
                 
         Parent Company  146,216  208,856    247,242  360,906  113,664  46.0%    678,701 
                 
         Minority Holders  172,937  173,331    266,934  330,101  63,167  23.7%    620,771 
                 
 
                 
Earning per Share (Ch$) 4.5  6.4    7.6  11.1  3.0  46.0%    0.021 
                 
Earning per Share ADR (Ch$) 223.9  319.8    378.6  552.7  174  46.0%    1.039 
                 

Pg. 13

PRESS RELEASE
First Half 2009
 

OPERATING INCOME

The operating income for the period ending June 30, 2009 increased by Ch$167,980 million, going from Ch$824,595 million at June 30, 2008 to Ch$ 992,575 million in the current year, representing an increase of 20.4% . Likewise, the EBITDA increased by Ch$175,575 million or 16.9%, amounting to Ch$1,213,571 million; the above is mainly due to the good results of the generation business for the period.

The operating revenues and costs, broken down by business line for the periods ending June 30, 2008 and 2009 are as follows:

Table 3

 
Operating Income 
by Businesses 		   Generation and Transmission    Distribution 
  Million Ch$    Thousand US$    Million Ch$    Thousand US$ 
               
  6M 08     6M 09    6M 09    6M 08    6M 09    6M 09 
 
Operating Revenues    1.366.091    1.400.992    2.634.633    1.891.141    1.995.654    3.752.923 
Operating Costs    (928.522)   (779.116)   (1.465.165)   (1.504.773)   (1.626.005)   (3.057.779)
 
Operating Income    437.569    621.876    1.169.468    386.368    369.650    695.144 
 
 
 
Operating Income 
by Businesses 		   Eliminations and Others        Consolidated     
  Million Ch$    Thousand US$    Million Ch$    Thousand US$ 
               
  6M 08     6M 09    6M 09    6M 08    6M 09    6M 09 
 
Operating Revenues    (188.454)   (220.000)   (413.720)   3.068.778    3.176.647    5.973.836 
Operating Costs    189.112    221.049    415.694    (2.244.183)   (2.184.071)   (4.107.250)
 
Operating Income    658    1.050    1.974    824.595    992.575    1.866.585 
 

Generation and Transmission Businesses showed an increase in operating income of Ch$184,307 million, equivalent to 42.1%, and totaling Ch$621,876. Physical sales of electricity generation increased by 6.5% amounting to 33,367 GWh as of June 2009 (31,321 GWh, in June 2008).

The operating income for the Generation and Transmission business line is expressed by country in the following table:

Table 4                                     
 
Generation & 
Transmission 		       Chile            Argentina            Brazil     
  Million Ch$    Thousand US$    Million Ch$    Thousand US$    Million Ch$    Thousand US$ 
           
  6M 08    6M 09    6M 09    6M 08    6M 09    6M 09    6M 08     6M 09    6M 09 
 
Operating Revenues    724.409    738.907    1.389.549    167.656    164.351    309.070    176.608    153.537    288.735 
% of consolidated    53%    53%    53%    12%    12%    12%    13%    11%    11% 
 
Operating Costs    (541.624)   (396.769)   (746.143)   (140.323)   (138.363)   (260.198)   (81.666)   (76.594)   (144.039)
% of consolidated    58%    51%    51%    15%    18%    18%    9%    10%    10% 
 
 
 
Operating Income    182.785    342.138    643.406    27.333    25.988    48.872    94.941    76.943    144.695 
 
 
 
Generation & 
Transmission 		       Peru            Colombia        Consolidated     
  Million Ch$    Thousand US$    Million Ch$    Thousand US$    Million Ch$    Thousand US$ 
           
  6M 08    6M 09    6M 09    6M 08    6M 09    6M 09    6M 08     6M 09    6M 09 
 
Operating Revenues    90.063    109.726    206.346    207.355    234.471    440.933    1.366.091    1.400.992    2.634.633 
% of consolidated    7%    8%    8%    15%    17%    17%             
 
Operating Costs    (66.650)   (61.697)   (116.025)   (98.258)   (105.693)   (198.760)   (928.522)   (779.116)   (1.465.165)
% of consolidated    7%    8%    8%    11%    14%    14%             
 
                                     
 
Operating Income    23.414    48.029    90.321    109.097    128.778    242.173    437.569    621.876    1.169.468 
 

Pg. 14

PRESS RELEASE
First Half 2009
 

Distribution business recorded a decrease in the operating result of Ch$16,719 million for the period, equivalent to 4.3%, totaling Ch$369,649 million as a consequence of higher operating costs. In turn, physical sales for the current period amounted to 31,148 GWh, representing an increase of 69 GWh, equivalent to 0.2% over the same period of the previous year and the number of customers increased by 415 thousand new clients, an equivalent 3.4%, exceeding the 12.6 million customer figure.

The operating income for the Distribution line of business, detailed by country, is presented in the following table:

Table 5                                     
 
        Chile            Argentina            Brazil     
Distribution    Million Ch$    Thousand US$    Million Ch$    Thousand US$    Million Ch$    Thousand US$ 
             
    6M 08    6M 09    6M 09    6M 08    6M 09    6M 09     6M 08     6M 09    6M 09 
 
Operating Revenues    501.828    579.638    1.090.036    162.778    182.538    343.271    755.478    725.445    1.364.235 
% of consolidated    27%    29%    29%    9%    9%    9%    40%    36%    36% 
 
Operating Costs    (426.239)   (505.780)   (951.143)   (139.099)   (157.865)   (296.872)   (598.192)   (585.431)   (1.100.930)
% of consolidated    28%    31%    31%    9%    10%    10%    40%    36%    36% 
 
 
 
Operating Income    75.589    73.858    138.893    23.678    24.673    46.399    157.286    140.015    263.305 
 
 
 
        Peru            Colombia            Consolidated     
Distribution    Million Ch$    Thousand US$    Million Ch$    Thousand US$    Million Ch$    Thousand US$ 
             
    6M 08    6M 09    6M 09    6M 08    6M 09    6M 09    6M 08     6M 09    6M 09 
 
Operating Revenues    125.792    153.805    289.238    345.265    354.228    666.142    1.891.141    1.995.654    3.752.923 
% of consolidated    7%    8%    8%    18%    18%    18%             
 
Operating Costs    (98.219)   (121.131)   (227.793)   (243.024)   (255.798)   (481.041)   (1.504.773)   (1.626.005)   (3.057.779)
% of consolidated    7%    7%    7%    16%    16%    16%             
 
 
 
Operating Income    27.574    32.674    61.446    102.241    98.430    185.102    386.368    369.650    695.144 
 

Summary of operating revenues, operating costs and operating income of all the Enersis’ subsidiaries, for the period ending on June 2008 and June 2009 is detailed in the following table:

Table 6               
               
    6M 08        6M 09   
               
Million Ch$  Operating  Operating  Operating    Operating  Operating  Operating 
  Revenues  Costs  Income    Revenues   Costs  Income 
             
Endesa Chile (*) 1,200,293  (856,509) 343,784    1,260,985  (714,519) 546,465 
Cachoeira (**) 94,787  (18,489) 76,298    42,622  (17,457) 25,166 
Fortaleza (***) 61,695  (48,364) 13,331    62,659  (44,115) 18,544 
Cien (**) 23,816  (15,533) 8,283    51,798  (16,017) 35,781 
Chilectra  501,828  (426,239) 75,589    579,638  (505,780) 73,858 
Edesur  162,778  (139,099) 23,678    182,538  (157,865) 24,673 
Distrilima (Edelnor) 125,792  (98,219) 27,574    153,805  (121,131) 32,674 
Ampla  450,156  (362,419) 87,737    428,004  (351,732) 76,273 
Investluz (Coelce) 305,322  (235,773) 69,549    297,441  (233,619) 63,823 
Codensa  345,265  (243,024) 102,241    354,228  (255,798) 98,430 
CAM Ltda.  76,854  (72,298) 4,556    76,411  (75,924) 487 
Inmobiliaria Manso de Velasco Ltda.  4,545  (4,748) (203)   2,064  (1,875) 189 
Synapsis Soluciones y Servicios IT Ltda.  31,808  (28,765) 3,043    35,181  (30,438) 4,743 
Enersis Holding and other investment vehicles  5,992  (14,349) (8,357)   6,274  (14,568) (8,294)
Consolidation Adjustments  (322,153) 319,645  (2,508)   (357,001) 356,765  (236)
             
Total Consolidation  3,068,778  (2,244,183) 824,595    3,176,647  (2,184,071) 992,575 
             

Pg. 15

PRESS RELEASE
First Half 2009
 

   
        6M 09     
   
Thousand US$    Operating    Operating    Operating 
    Revenues    Costs    Income 
 
Endesa Chile (*)   2,371,341    (1,343,688)   1,027,654 
Cachoeira (**)   80,153    (32,828)   47,325 
Fortaleza (***)   117,833    (82,961)   34,872 
Cien (**)   97,408    (30,120)   67,289 
Chilectra    1,090,036    (951,143)   138,893 
Edesur    343,271    (296,872)   46,399 
Distrilima (Edelnor)   289,238    (227,793)   61,446 
Ampla    804,883    (661,448)   143,435 
Investluz (Coelce)   559,352    (439,331)   120,021 
Codensa    666,142    (481,041)   185,102 
CAM Ltda.    143,695    (142,779)   917 
Inmobiliaria Manso de Velasco Ltda.    3,882    (3,527)   355 
Synapsis Soluciones y Servicios IT Ltda.    66,160    (57,240)   8,920 
Enersis Holding and other investment vehicles    11,798    (27,395)   (15,597)
Consolidation Adjustments    (671,358)   670,914    (444)
 
Total Consolidation    5,973,836    (4,107,250)   1,866,585 
 
(*) Since January 1st, 2009, includes Gas Atacama, Transqullota e HydroAysén     
(**) Consolidated by Endesa Chile until September 30th, 2005. Since October 1st, 2005 is consolidated by Enersis through Endesa Brasil. 
(***) Since October 1st, 2005, these subsidiaries are consolidated by Enersis through Endesa Brasil 

FINANCIAL RESULT

As of June 30th, 2009, the company recorded a financial result of Ch$156,134 million loss, representing a 2.8% increase with respect to the same period of the preceding year, or an equivalent Ch$4,259 million. This variation in results is due to exchange rate differences that amounted a variation of Ch$55,672 million, basically in Chile and Argentina. In Chile, due to the peso/dollar parity effect, which over the period appreciated more than 20% (a 6% devaluation in the previous period), the impact on net assets in dollars exposed to exchange rate fluctuations amounted to Ch$28,796 million (a loss of Ch$18,390 million during 2009 and a income of Ch$10,405 million as of June 2008). In Argentina, in turn, the Argentine peso devalued by approximately 10% during the current period (an approximate 4% appreciation in the same period last year), the impact on the dollar debt was Ch$21,433 million (a loss of Ch$14,519 million in 2009 and an income of Ch$6,258 million at June, 2008).

The above is partially offset by the value impact of the Inflation Index Units – UF (Unidades de Fomento) on Chile’s UF debt, due to the fact that during this semester the UF dropped in value by 2.4% compared to an increase of 3.2% during the same period last year, reflecting a variance of Ch$41,818 million in lower financial costs. The net financial expenditure declined by Ch$9,595 million mainly due to lower average debt over the current period.

TAXES

Tax expense was reduced in Ch$11,748 million as of June, 2009. The latter is mostly explained by the decreases in: Enersis by Ch$34,942 million, Costanera by Ch$9,824 million, San Isidro by Ch$6,993 million and Codensa by Ch$4,638 million. Offset, in part, by increases in: Gas Atacama of Ch$16,823 million, CIEN by Ch$11,417 million, Emgesa by Ch$6,599 million, Pangue by Ch$5,496 million and Edegel in the amount of Ch$4,491 million.

Pg. 16

PRESS RELEASE
First Half 2009
 

CONSOLIDATED BALANCE SHEET ANALYSIS

ASSETS UNDER IFRS

Table 7

             
ASSETS      Million Ch$        Thousand US$ 
             
  2007  2008  6M 09  Var 08-09  Chg %    6M 09 
             
 
CURRENT ASSETS               
Cash and Cash Equivalents  588,877  1,318,062  947,082  (370,980) (28.1%)   1,781,033 
Financial assets in reasonable value with               
change in results  -  1,324  1,103  (221) 0.0%    2,075 
Financial assets available for sale  -  -  20,059  20,059  -    37,722 
Accounts receivable, net  1,159,728  1,313,582  1,316,916  3,334  0.3%    2,476,523 
Amounts due from related companies  52,579  24,747  18,256  (6,491) (26.2%)   34,331 
Inventories  96,743  99,400  104,663  5,263  5.3%    196,823 
Assets for Hedging  -  -  -  -  -    - 
Prepaid expenses  10,916  8,973  10,278  1,305  14.5%    19,328 
Income taxes recoverable  146,791  131,788  150,557  18,769  14.2%    283,130 
Other current assets  15,847  28,876  40,238  11,362  39.3%    75,669 
             
Total currrent assets  2,071,482  2,926,752  2,609,152  (317,600) (10.9%)   4,906,635 
             
 
OTHER ASSETS               
Financial Assets available for sale  22,501  22,495  2,533  (19,962) (88.7%)   4,764 
Other Financial Assets  156,668  150,946  153,297  2,351  1.6%    288,282 
Long-term receivables  101,373  144,508  103,341  (41,167) (28.5%)   194,339 
Amounts due from related companies  505  641  575  (66) (10.3%)   1,082 
Investments in associates  11,885  37,334  19,530  (17,804) (47.7%)   36,727 
Intangibles  1,467,885  1,459,390  1,440,897  (18,492) (1.3%)   2,709,676 
Land, plant and equipment, net  7,589,675  8,579,345  8,106,562  (472,783) (5.5%)   15,244,776 
Investment Property  28,504  26,364  26,835  471  1.8%    50,465 
Deferred income taxes  541,265  512,852  477,720  (35,132) (6.9%)   898,376 
Assets for Hedging  1,036  2,487  1,266  (1,220) (49.1%)   2,381 
Prepaid expenses  1,386  1,203  3,086  1,883  156.6%    5,804 
Others assets  70,737  72,215  85,255  13,040  18.1%    160,326 
             
Total other assets  9,993,418  11,009,780  10,420,899  (588,881) (5.3%)   19,596,997 
             
 
             
TOTAL ASSETS  12,064,900  13,936,532  13,030,051  (906,481) (6.5%)   24,503,632 
             

Pg. 17

PRESS RELEASE
First Half 2009
 

The company’s Total Assets as of June 2009 decreased by Ch$906,481 million compared to the period ended on December 2008 which is mainly due to:

• A Ch$317,600 million decrease in Current Assets, equal to 10.9%, as a result of:

  • A Ch$370,980 million decrease in cash and cash equivalent mainly due to reduced balances at Endesa Chile amounting to Ch$336,340 million in terms of dividend and bonus payments, to payment of dividends at Enersis totaling Ch$79,545 million, Ch$13,597 million at Codensa, Ch$13,592 million at Costanera and Ch$9,968 million at Cachoeira Dourada, partially compensated by increases at Emgesa amounting to Ch$30,611 million, Ch$22,642 million at Endesa Brasil, Ch$22,219 million at Ampla and Ch$13,274 million at Central Fortaleza.

Partially compensated by:

  • An increase in available financial assets for sale amounting to Ch$20,059 million, due to the transfer from the long-term of EEB shares that are up for sale.

  • An increase in accounts receivable for current taxes amounting to Ch$18,769 million.

• Decrease in Non-Current Assets amounting to Ch$588,881 million representing a 5.3%, mainly due to:

  • Reduction in Properties, Plants and Equipment, reached an amount of Ch$472,783 million due to the impact of converting foreign currencies to Chilean pesos by those subsidiaries whose functional currencies differ from the Chilean peso, the latter effect totalized approximately Ch$612,000 million, added to the depreciation effect for the period amounting Ch$220,996 million partially set off by acquisitions during the period amounting to approximately Ch$353,630 million.

  • Decreased trade debtors and other receivables amounting Ch$41,167 million, mainly due to the transfer to the short term of the Atacama Finance accounts receivables amounting Ch$45,935 million.

  • Decrease in assets due to deferred taxes amounting Ch$35,132 million resulting, from reduced tax losses amounting Ch$27,146 million and the impact of the conversion to Chilean pesos of foreign subsidiaries amounting to Ch$9,500 million.

Pg. 18

PRESS RELEASE
First Half 2009
 

LIABILITIES AND SHAREHOLDERS EQUITY UNDER IFRS

Table 8               
             
LIABILITIES AND SHAREHOLDER´S EQUITY      Million Ch$        Thousand US$ 
             
  2007  2008  6M 09  Var 08-09  Chg %    6M 09 
             
 
CURRENT LIABILITIES               
Loans that acrue interests  719,737  1,244,976  840,376  (404,600) (32.5%)   1,580,367 
Other financial liabilities  -  -  553  553  -    1,041 
Sundry Creditors and other Accounts payable  796,251  986,103  910,455  (75,649) (7.7%)   1,712,153 
Accounts payable to related companies  69,458  115,993  130,709  14,716  12.7%    245,804 
Provisions  78,638  107,398  87,319  (20,079) (18.7%)   164,207 
Income taxes payable  102,642  178,700  168,550  (10,150) (5.7%)   316,966 
Other current liabilities  20,612  30,315  23,082  (7,233) (23.9%)   43,407 
Defererd liabilities  14,223  12,180  19,426  7,246  59.5%    36,532 
Employee Benefits  4,497  5,353  4,923  (430) (8.0%)   9,258 
Liabilities from Hedge  10,854  4,269  5,258  990  23.2%    9,888 
Accumulated Liabilities (or acrued), total  -  -  -  -  -    - 
             
Total current liabilities  1,816,911  2,685,287  2,190,651  (494,636) (18.4%)   4,119,624 
             
 
NON-CURRENT LIABILITIES               
Loans that acrue interests  3,366,743  3,821,828  3,337,549  (484,279) (12.7%)   6,276,419 
Other non-current financial liabilities  -  -  11,021  11,021  -    20,725 
Sundry Creditors and other Accounts payable  45,119  51,221  67,486  16,265  31.8%    126,911 
Accounts payable to related companies  8,162  8,978  5,401  (3,577) (39.8%)   10,156 
Provisions  200,023  212,383  227,432  15,049  0.0%    427,696 
Deferred income taxes  589,750  637,376  566,831  (70,545) (0)   1,065,952 
Other long-term liabilities  30,898  33,984  39,076  5,092  15.0%    73,484 
Defererd liabilities  144,366  178,973  182,457  3,485  1.9%    343,120 
Employee Benefits  143,944  173,319  176,926  3,607  2.1%    332,718 
Liabilities from Hedge  213,419  104,053  197,733  93,680  90.0%    371,847 
             
Total long-term liabilities  4,742,425  5,222,114  4,811,911  (410,203) (7.9%)   9,049,028 
             
 
SHAREHOLDERS´ EQUITY               
Paid-in capital  2,594,015  2,824,883  2,824,883  -  0.0%    5,312,327 
Shares owned by the parent's company  -  -  -  -  -    - 
Other reserves  (564,985) (1,244,278) (1,307,706) (63,429) 5.1%    (2,459,204)
Retained earnings  502,274  1,003,120  1,357,427  354,308  35.3%    2,552,707 
Net income for the period  369,827  507,590  360,906  (146,684) (28.9%)   678,701 
     Total shareholder's equity atributable to  2,901,131  3,091,315  3,235,510  144,195  4.7%    6,084,530 
     the Parent's comp.               
     Minority Interest  2,604,433  2,937,816  2,791,979  (145,837) (5.0%)   5,250,450 
             
Total shareholder´s equity  5,505,564  6,029,131  6,027,489  1,642  (0.0%)   11,334,980 
             
 
             
TOTAL LIABILITIES AND SHAREHOLDER´S  12,064,900  13,936,532  13,030,051  (906,481) (6.5%)   24,503,632 
EQUITY               
             

Pg. 19

PRESS RELEASE
First Half 2009
 

The company’s Total Liabilities decreased by Ch$906,481 million from the period ended on December 2008, which was largely due to the following:

• Decrease in Current Liabilities of Ch$494,636 million, equal to 18.4%, due to:

  • Accruing loans declining by Ch$404,600 million mainly at Endesa Chile amounting to Ch$407,459 million due to bonus payments, a drop in the exchange rate and the UF; by Ch$42,578 million at Edegel in loans and bonus payments amounting to Ch$34,239 million and the conversion impact; by Ch$21,751 million at Emgesa due to the conversion impact; by Ch$22,310 million at Enersis in loan payments amounting to Ch$15,626 million and the exchange rate and UF impact; at Codensa by Ch$11,109 million in loan payments and transfers from the long term and at Chilectra Ch$12,423 million. Partially compensated by the increase in Ampla by Ch$41,367 million due to a bond issuance and Cien by Ch$27,452 million.

  • Reduction in Trade Creditors totaling Ch$75,649 million mainly at Endesa for Ch$25,622 million, Edesur Ch$18,749 million, Endesa Eco Ch$14,255 million, Costanera Ch$13,793 million and San Isidro Ch$9,780 million; the above is partially offset by an increase in accounts payable at Cien amounting to Ch$29,823 million, Codensa for Ch$26,327 million and Emgesa for Ch$25,460 million.

  • Decrease in current Provisions by Ch$20,079 million due to lower provisions for contingencies and lawsuits totaling Ch$13,771 million and a reduction in the employee benefit liability for Ch$4,246 million.

• Non Current Liabilities decreased by Ch$410,203 million, equal to a 7.9%, mainly to:

  • Accruing loans declined by Ch$484,279 million mainly at Endesa Chile amounting to Ch$138,549 million derived from a drop in the exchange rate and the UF; at Codensa for Ch$86,654 million because of the transfer of bonds to the short term and the conversion effect; at Grupo Endesa Brasil Ch$84,060 million due to the transfer to the short term and the conversion impact; at Enersis Ch$65,466 million derived from exchange rate and UF impact; at Edegel Ch$27,191 million due to exchange rate and conversion effect; at Costanera Ch$23,964 million due to transfer to the short term, loan payment and conversion effect and at El Chocon by Ch$13,009 million due to the conversion effect.

  • Decrease in liabilities due to deferred taxes by Ch$70,545 million derived basically from the conversion impact in foreign subsidiaries amounting to Ch$46,156 million and a reduction in deferred taxes at Codensa amounting to Ch$9,365 million; at Endesa Ch$6,868 million; at Pangue Ch$6,117 million; at San Isidro Ch$3,513 million and at Celta Ch$2,604 million.

  • Increase in Hedging Liabilities amounting to Ch$93,680 million resulting from increased Mark-to-Market derivatives at Enersis totaling Ch$95,388 million.

Net Shareholders’ equity declined by Ch$1,642 million with respect to December 2008. The Parent Company equity increased by Ch$144,195 million which is explained mainly by the Ch$360,906 million period result, the increase in Hedge Reserves amounting to Ch$72,526 million, partially compensated by the decline in conversion reserve on acquired investments and goodwill amounting to Ch$140,389 million and a reduction due to the recording of the minimum dividend totaling Ch$138,045 million. The minority interest declined by Ch$145,837 as a result of the net effects on conversion, minimum dividend, derivatives’ hedge reserves and the minority shares’ results.

Pg. 20

PRESS RELEASE
First Half 2009 
 

DEBT MATURITY WITH THIRD PARTIES, MILLION CH$

Table 9

 
                                TOTAL 
     
Million Ch$    2009    2010    2011    2012    2013    2014    Balance     
 
Chile    99,535    213,432    116,211    11,070    222,663    368,040    862,729    1,893,681 
 
Enersis    90,099    19,329    1,957    2,069    2,188    253,843    209,805    579,290 
Chilectra    551    -    -    -    -    -    -    551 
Other (*)   6,069    2,436    42    120    -    -    -    8,667 
Endesa Chile (**)   2,816    191,667    114,212    8,881    220,475    114,197    652,923    1,305,172 
 
Argentina    41,824    69,118    55,922    17,893    13,562    7,575    -    205,894 
 
Edesur    1,798    26,321    13,051    5,096    407    264    -    46,936 
Costanera    26,778    26,512    20,714    12,798    13,155    7,312    -    107,269 
Chocon    13,248    16,285    22,157    -    -    -    -    51,689 
 
Peru    28,739    46,738    67,185    78,811    50,321    49,325    81,011    402,130 
 
Edelnor    5,555    17,912    26,211    22,996    25,778    26,308    35,822    160,582 
Edegel    23,184    28,826    40,974    55,815    24,543    23,018    45,189    241,547 
 
Brazil    68,469    242,194    217,159    210,624    68,525    29,234    27,109    863,315 
 
Coelce    8,135    106,293    39,102    37,969    27,938    21,274    6,515    247,226 
Ampla    56,371    72,538    114,285    109,690    33,617    486    2,025    389,012 
Cien    1,283    57,714    57,714    56,466    -    -    -    173,176 
Fortaleza    2,680    5,649    6,059    6,498    6,970    7,475    18,569    53,900 
 
Colombia    95,071    190,443    94,996    89,383    42,484    79,016    292,129    883,524 
 
Codensa    10,555    88,077    52,776    8,898    42,484    65,970    124,419    393,179 
Emgesa    84,516    102,366    42,221    80,485    -    13,046    167,711    490,345 
 
TOTAL    333,639    761,926    551,472    407,781    397,556    533,191    1,262,978    4,248,543 
 
(*) Includes: CAM 
(**) Includes: Endesa Chile, Pangue, Pehuenche, San Isidro, Celta and Túnel El Melón. 

DEBT MATURITY WITH THIRD PARTIES, THOUSAND US$

Table 9.1

 
                                TOTAL 
     
Thousand US$    2009    2010    2011    2012    2013    2014    Balance     
 
Chile    187,181    401,370    218,540    20,818    418,729    692,116    1,622,402    3,561,156 
 
Enersis    169,435    36,348    3,680    3,891    4,115    477,364    394,549    1,089,382 
Chilectra    1,036    -    -    -    -    -    -    1,036 
Other (*)   11,414    4,582    79    225    -    -    -    16,299 
Endesa Chile (**)   5,297    360,440    214,781    16,702    414,614    214,753    1,227,853    2,454,439 
 
Argentina    78,653    129,980    105,163    33,649    25,504    14,246    -    387,194 
 
Edesur    3,382    49,498    24,542    9,582    765    496    -    88,266 
Costanera    50,357    49,857    38,954    24,066    24,738    13,750    -    201,724 
Chocon    24,914    30,624    41,667    -    -    -    -    97,205 
 
Peru    54,045    87,893    126,344    148,207    94,631    92,759    152,345    756,224 
 
Edelnor    10,446    33,685    49,291    43,245    48,477    49,473    67,366    301,982 
Edegel    43,599    54,208    77,053    104,962    46,154    43,286    84,979    454,241 
 
Brazil    128,759    455,457    408,378    396,088    128,864    54,977    50,981    1,623,505 
 
Coelce    15,299    199,889    73,533    71,402    52,539    40,006    12,253    464,921 
Ampla    106,009    136,411    214,918    206,278    63,218    913    3,808    731,555 
Cien    2,413    108,533    108,533    106,188    -    -    -    325,667 
Fortaleza    5,039    10,624    11,394    12,220    13,107    14,057    34,920    101,362 
 
Colombia    178,786    358,138    178,645    168,090    79,894    148,593    549,363    1,661,509 
 
Codensa    19,849    165,634    99,247    16,733    79,894    124,059    233,975    739,392 
Emgesa    158,937    192,504    79,398    151,356    -    24,534    315,388    922,117 
 
TOTAL    627,425    1,432,837    1,037,070    766,852    747,622    1,002,691    2,375,091    7,989,588 
 
(*) Includes: CAM 
(**) Includes: Endesa Chile, Pangue, Pehuenche, San Isidro, Celta and Túnel El Melón. 

Pg. 21

PRESS RELEASE
First Half 2009 
 

EVOLUTION OF KEY FINANCIAL RATIOS

Table 10 

           
Indicator 
 Unit  2008 6M09  Var 08 - 09  Chg % 
           
Liquidity  Times  1.1  1.2  0.1  9.2% 
Acid ratio test *  Times  1.0  1.1  0.1  8.6% 
Working capital  million Ch$  241,465  418,501  177,036  73.3% 
Working capital  th. US$  454,087  787,011  332,924  73.3% 
Leverage **  Times  1.3  1.2  (0.1) (11.5%)
Short-term debt  %  0.3  0.3  (0.0) (8.8%)
Long-term debt  %  0.7  0.7  0.0  4.5% 
           
* Current assets net of inventories and pre-paid expenses       
** Using the ratio = Total debt / (equity + minority interest)      

           
 Indicator  Unit  6M08  6M 09  Var 08-09  Chg % 
           
Financial Expense Coverage***  Times  4.7  5.5  0.8  17.3% 
Op.Income / Op.Rev.  %  26.9  31.2  4.4  16.3% 
ROE  %  17.0  22.3  5.3  31.0% 
ROA  %  9.6  10.6  1.0  10.2% 
           
***EBITDA/Financial Costs           

Liquidity index as of June, 2009 was 1.2, an improvement of 0.1 or an equivalent of 9.2% compared to December, 2008. This shows a company that continually presents a strong liquidity position, reducing its bank borrowings and financing its investments with its cash surpluses and having a satisfactory debt maturity pattern.

Leverage ratio was 1.2, reflecting a reduction of 0.1 with respect to December, 2008, due to lower indebtedness during 2009.

Financial Expense Coverage increased 0.8 times or an equivalent 17.3%, going from 4.7 in June 2008 to 5.5 for the current period. The above is the result of a significant EBITDA increase achieved by the company over the current period and to the containment of debt service costs, mainly due to a positive UF effect.

Operating Income over Operating Revenues profitability increased 16.3%, reaching a 31.2% in June, 2009.

The annual ROE amounted to 22.3% in June, 2009 with an increase of 31.0% over June, 2008 when it reached 17.0% . This increase is derived from higher period results despite an increase in Parent Company equity.

Annual ROA went from 9.6% in June, 2008 to 10.6% in June 2009, situation which also reflects the improved current period result, together with a decline in assets, mainly in terms of conversion effects from the functional currency to the Chilean peso.

Pg. 22

PRESS RELEASE
First Half 2009 
 

CONSOLIDATED STATEMENTS OF CASH FLOWS ANALYSIS

UNDER IFRS

 

Table 11

           
CASH FLOW  Million Ch$    Thousand US$ 
           
  6M 08  6M 09  Var 08-09  Chg %    6M09 
           
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES             
           
Net income (loss) for the year  514,176  691,007  176,831  34.4%    1,299,472 
           
 
Adjustments to reconcile with the gain (loss) of the operations, total  342,923  277,613  (65,310) (19.0%)   522,065 
 
Net cash from operating activities before non monetary adjustment  857,099  968,621  111,522  13.0%    1,821,537 
 
Non monetary adjustments:        -    - 
Depreciation  207,509  214,646  7,137  3.4%    403,653 
Amortization of intangibles  5,893  6,349  456  7.8%    11,940 
(Reversal of) Impairment losses  -  -  -  -    - 
Foreign Exchange losses  (31,515) 24,157  55,672  176.7%    45,429 
Change in the value of Investment Property  -  -  -  -    - 
Non realized Gain (loss) on the fair value of hedging instruments  -  -  -  -    - 
Gain (loss) for decrease in the non current assets account not available for             
sale  989  203  (786) (79.5%)   381 
Gain (loss) on the sale of other assets and financial liabilities  844  -  (844) (100.0%)   - 
Participation in Gain (loss) of Investments  (597) -  597  100.0%    - 
Provisions  21,039  38,631  17,592  83.6%    72,648 
Reversal of not used provision  7,112  6,053  (1,059) (14.9%)   11,383 
Provisions used  8,045  11,846  3,801  47.2%    22,277 
Increase (decrease) on assets for deferred taxes  20,551  (10,003) (30,554) (148.7%)   (18,811)
Increase (decrease) on liabilities for deferred taxes  4,940  (8,439) (13,379) -    (15,870)
Other non monetary adjustments  (17,394) (8,902) 8,492  48.8%    (16,741)
Total Non monetary adjustments:  153,528  258,344  104,816  68.3%    485,829 
Increase (decrease) in non current assets and Disposal Groups             
available for sale  1,710  -  (1,710) (100.0%)   - 
Increase (decrease) in inventory  (17,460) (91) 17,369  99.5%    (171)
Increase (decrease) in sundry debtors and other accounts receivable  94,329  12,240  (82,089) (87.0%)   23,018 
Increase (decrease) in prepaid expenses  3,577  1,935  (1,642) (45.9%)   3,638 
Decrease (increase) in other assets  (84,389) (41,887) 42,502  50.4%    (78,770)
Increase (decrease) in sundry creditors and other accounts payable  63,608  (205,962) (269,570) -    (387,321)
Increase (decrease) on deferred income  12,612  2,273  (10,339) (82.0%)   4,275 
Increase (decrease) on acruances  (3,212) (3,570) (358) (11.1%)   (6,713)
Decreased (increase) in income tax payable  (165,860) (187,144) (21,284) (12.8%)   (351,934)
Decreased (increase) in employee benefits  543  4,838  4,295  -    9,099 
Decreased (increase) in other disbursements  (68,107) (18,422) 49,685  73.0%    (34,643)
Changes in working capital  (158,183) (380,183) (222,000) (140.3%)   (714,952)
Proceeds from Dividends classified as operational  -  255  255  -    480 
Payments of Dividends classified as operational  3,014  12,269  9,255  -    23,073 
Interest received  -  574  574  -    1,079 
Interest paid  (162) 32,249  32,411  -    60,645 
Income taxes received  -  792  792  -    1,490 
Income taxes paid  10,330  36,493  26,163  -    68,627 
Other gains (losses) from other operating activities  -  (225) (225) -    (423)
Cash generated by the operating activities  (13,182) (79,615) (66,433) -    (149,720)
   
NET CASH FLOW FROM OPERATING ACTIVITIES  839,261  767,167  (72,095) (8.6%)   1,442,695 
   

Pg. 23

PRESS RELEASE
First Half 2009 
 

UNDER IFRS

Cont. Table 11                     
   
NET CASH FLOW FROM OPERATING ACTIVITIES    839,261    767,167    (72,095)   (8.6%)   1,442,695 
   
CASH FLOWS PROVIDED BY INVESTING ACTIVITIES                    - 
   
Proceeds from the sale of plant and equipment    (1,978)   5,139    7,117    -    9,664 
Proceeds from the sale of intangible assets    -    756    756    -    1,422 
Proceeds from the sale of investment property    7,555    -    (7,555)   (100.0%)   - 
Proceeds from the sale of investment in associates    -    -    -    -    - 
Other cash flows from investment activities    (4,328)   3,861    8,189    189.2%    7,262 
Dividends received    2,296    4,572    2,276    99.1%    8,598 
Interest received    638    1,878    1,240    194.3%    3,533 
Acquisition of property, plant and equipment    352,745    339,876    (12,869)   (3.6%)   639,152 
Payments for the acquisition of property, plant and equipment    -    92    92    -    173 
Acquisition of pintangible assets    3,207    1,493    (1,714)   (53.4%)   2,808 
Payments for the acquisition of associates    -    24,975    24,975    -    46,967 
Provided loans to related companies    26,226    7,299    (18,927)   (72.2%)   13,726 
Provided loans to non related companies    -    -    -    -    - 
Other cash flows from investing activities    1,847    23,111    21,264    -    43,462 
   
NET CASH FLOW FROM INVESTING ACTIVITIES    (379,875)   (380,639)   (765)   (0.2%)   (715,810)
   
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES                    - 
   
Proceeds from loans    438,734    368,770    (69,964)   (15.9%)   693,490 
Proceeds from the issue of other financial liabilities    10,682    38,107    27,425    -    71,662 
Proceeds from other financial sources    19,537    21,310    1,773    9.1%    40,074 
Repayment/ drawing of borrowings    459,506    373,659    (85,847)   (18.7%)   702,684 
Repayment of finance lease liabilities    3,682    2,684    (998)   (27.1%)   5,047 
Loans repayments to related companies    1,292    1,428    136    10.5%    2,685 
Interest paid classified as financial    96,310    111,187    14,877    15.4%    209,093 
Dividends paid    268,289    245,840    (22,449)   (8.4%)   462,314 
Other cash flows from financing activities    (21,569)   (361,619)   (340,050)   -    (680,042)
   
NET CASH FLOW FROM FINANCING ACTIVITIES    (381,696)   (668,230)   (286,535)   (75.1%)   (1,256,638)
   
Net increase (decrease) in cash and cash equivalents    77,690    (281,702)   (359,392)   -    (529,753)
   
Effects of exchange rate fluctuations on cash held    35,830    (89,278)   (125,108)   -    (167,892)
   
Effects of consolidation adjustments on cash held    -    -    -    -    - 
   
Cash and cash equivalents at begining of period    588,877    1,318,062    729,185    123.8%    2,478,678 
   
Cash and cash equivalents at end of period    702,398    947,082    244,684    34.8%    1,781,033 
   

The company generated a negative cash flow of Ch$281,702 million for the period, which can be broken down as follows:

Operating activities generated a positive net cash flow of Ch$767,167 million that represents a drop of 8.6% with respect to the same period of the previous year. This cash flow consists mainly of the income for the period.

Investment activities generated a net negative cash flow of Ch$380,639 million, that compared to the same period of the preceding year represents a 0.2% inferior cash flow or Ch$ 764 million. Basically, these payments represent the incorporation of fixed assets amounting to Ch$339,876 million, investments in related companies for Ch$24,975 million and other investment disbursements for Ch$30,410 million; the above was partially offset by the revenue from investments amounting to Ch$16,207 million.

Financing activities originated a negative cash flow of Ch$668,230 million, from loan repayments totaling Ch$373,659 million, dividend payments of Ch$245,840 million, interest payments of Ch$111,187 million, and other debt service payments totaling Ch$365,731 million. The above is offset in part by the acquisition of loans for Ch$368,770 million and bond positions for Ch$38,107 million as well as other financing sources amounting to Ch$21,310 million.

Pg. 24

PRESS RELEASE
First Half 2009 
 

CASH FLOW RECEIVED FROM FOREIGN SUBSIDIARIES BY ENERSIS, CHILECTRA AND ENDESA CHILE

Table 13 

 
    Interest Received    Dividends Received        Total Cash Received 
    Millions Ch$    Thousand US$     Millions Ch$    Thousand US$    Millions Ch$    Thousand US$ 
             
    6M 08    6M 09    6M 09    6M 08    6M 09    6M 09    6M 08   6M 09   6M 09 
 
Argentina     565    460    865    178    -    -    743    460    865 
Peru     -    -    -    7,783    7,196    13,533    7,783    7,196    13,533 
Brazil     -    6,309    11,864    28,724    16,282    30,619    28,724    22,591    42,483 
Colombia     -    -    -    29,058    12,731    23,942    29,058    12,731    23,942 
Chile     -    -        -    -        -    -    - 
 
Total     565    6,769    12,729    65,743    36,209    68,093    66,308    42,978    80,823 
 
Source: Internal Financial Report                             

CAPEX AND DEPRECIATION

Table 14

 
  Payments for Additions of Fixed assets    Depreciation 
       
                       
  Million Ch$    Thousand US$    Million Ch$    Thousand US$ 
Million Ch$  6M 08    6M 09    6M 09    6M 08    6M 09    6M 09 
 
Endesa Chile  115,471    169,230    318,245    91,284    96,976    182,368 
Cachoeira (*) -    -    -    4,000    3,308    6,222 
Endesa Fortaleza (**) 359    -    -    4,030    3,655    6,873 
Cien (**) -    379    713    7,815    9,441    17,755 
Chilectra S.A.  28,084    15,602    29,341    9,125    9,815    18,458 
Edesur S.A.  47,802    27,358    51,447    8,867    8,800    16,549 
Edelnor S.A.  14,101    19,942    37,501    9,861    10,017    18,838 
Ampla  59,614    38,110    71,667    24,169    23,494    44,181 
Coelce  62,241    44,040    82,820    17,751    19,269    36,237 
Codensa S.A.  19,902    22,460    42,237    27,584    26,873    50,537 
Cam Ltda.  1,199    1,296    2,437    925    916    1,723 
Inmobiliaria Manso de Velasco Ltda.  1,133    461    867    104    131    246 
Synapsis Soluciones y Servicios Ltda.  2,115    931    1,751    1,514    1,389    2,612 
Holding Enersis y sociedades de Inversión  724    66    (1,148)   479    561    1,056 
 
Total  352,745    339,875    637,877    207,509    214,646    403,653 
 
 
(*) Consolidated by Enersis through Endesa Brasil since October 1st , 2005.             

Pg. 25

PRESS RELEASE
First Half 2009 
 

THE PRINCIPAL RISKS ASSOCIATED TO THE ACTIVITIES OF THE ENERSIS GROUP

The Group’s activities are subject to a broad range of governmental standards, and any modification of such standards may affect the Group’s activities, economic situation and operating results.

The Group’s operating subsidiaries are subject to a broad range of rules regarding tariffs and other issues that govern their activities, both in Chile and other countries in which we operate. As a result, the introduction of new laws and regulations, such as amendments to current laws and standards, could impact our activities, economic situation and operating results.

On occasion, these new laws and standards modify aspects of the regulations that can affect existing rights which, in such event, could have adverse effects on future Group accounts.

The Group’s activities are subject to broad environmental regulations that. Eventual modifications to these issues could affect activities, the economic situation and operating results.

Enersis and its operating subsidiaries are subject to environmental standards that, among others, require that environmental impact studies be carried out regarding future projects, together with the acquisition of licenses, permits and other mandatory approvals as well as compliance with all the requirements provided for in such licenses, permits and standards. As with any other regulated company, Enersis cannot guarantee:

  • That the public authorities will approve such environmental impact studies;
  • That public opposition will not lead to delays and modifications of any submitted project;
  • That the laws and standards will not be amended or interpreted in such a way that could increase compliance expense or that operation, plants and plans of the companies in which the Group participates are affected.

The Group’s commercial policies have been planned so that eventual impacts arising from changes in hydrological conditions are reduced.

The Enersis Group’s operations include hydroelectric generation and therefore depend at all times on the existing hydrological conditions in the broad geographic zones in which the Group’s hydroelectric generating plants are located. If hydrological conditions produce drought or other conditions that negatively influence, the results of these hydroelectric generation activities, results could be adversely impacted. Thus Enersis has decided, as part of its commercial policy, not to commit its total capacity. Moreover, the electricity business has been impacted by atmospheric conditions that could condition consumption. Depending on the weather conditions, differences in the business margins can occur.

The financial situation and operating results can be impacted adversely if exposure to risks such as interest rates, the price of commodities and the exchange rate are not managed efficiently.

Pg. 26

PRESS RELEASE
First Half 2009 
 

Interest Rate Risk

Interest rate variations modify the reasonable value of those assets and liabilities that accrue a fixed interest rate, as well as the future flow of assets and liabilities pegged to a variable interest rate.

The purpose of interest rate exposure management is to achieve an adequate balance in debt structures, thereby minimizing debt costs with reduced volatility on financial results.

Consistent with current interest rate hedging policy, the portion of fixed and/or secured debt rate over the total net debt was 40% as of June 30th, 2009.

Depending on the Group’s forecasts and debt structure objectives, hedging transactions take place through contracted derivatives that mitigate these risks. The instruments currently used to comply with this policy are collars, that ensure the Libor rate within a specific band, or simply interest rate swaps that from variable to fixed rates.

The Enersis Group’s financial debt structure according to fixed, secured or variable rate, after contracted derivatives, is the following:

Net position:

  12/31/2008  06/30/2009 
Fixed interest rate  46%  36% 
Protected interest rate  3%  3% 
Variable interest rate  51%  61% 
Total  100%  100% 

Exchange rate risks:

The exchange rate risks are mainly related to the following transactions:

  • Foreign currency debts contracted by Group’s companies.
  • Payments made on international markets for the acquisition of projects related materials.
  • Group companies incomes directly linked to the evolution of the dollar.
  • Cash flows from subsidiary companies to headquarters in Chile are exposed to exchange rate fluctuations.

In order to mitigate exchange rate risks, the Enersis Group’s exchange rate hedging policy is based on cash flows and it strives to maintain a balance between the flows indexed to United States dollar and the asset and liability levels in such currency.

Currency swaps and exchange rate forwards are the instruments currently used in compliance with this policy. Likewise, the policy strives to refinance debts in each company’s functional currency.

Pg. 27

PRESS RELEASE
First Half 2009 
 

Commodities Risks:

The Enersis Group is exposed to price fluctuation risks on some commodities, basically through:

  • Fuel purchases for the electrical power generating process.
  • Energy buying-selling transactions on local markets.

The company does not execute commodity derivates transactions aimed to managing fuel fluctuations.

With the objective of reducing risks in extreme drought situations, the company has designed a trading policy that defines sales commitment levels consistent with its generating plants’ sound energy capacity in a dry year and includes risk mitigation clauses in some contracts with non regulated clients.

Liquidity Risks:

In engaging committed long term borrowing facilities and short term financial investments the Group maintains a consistent liquidity policy, for the adequate amounts required to support projected needs for the period, contingent with the situation and the expectations of the debt and equity markets.

The aforementioned projected needs include net financial debt maturities that are after including financial derivatives. For further detail on the characteristics and conditions of these financial derivatives, see note 17 to the Consolidated Financial Statements.

As of June 30, 2009, the Enersis Group held liquidity in the amount of Ch$ 947,082 million in cash and cash equivalent and Ch$106,352 million in available credit lines. As of December 31, 2008, the Group’s liquidity totaling was Ch$1,318,062 million in cash and cash equivalent, and Ch$ 127,290 million in available credit lines.

Credit Risks

Given the current economic climate, the Group has been carefully following the credit risk standing.

  • Trade Accounts Receivable:

Credit risk in accounts receivable, originating from trading activities, is historically very limited given that the short collection term conditions to customer doesn’t allows them to individually accumulate significant amounts. Additionally, in the case of the so called “unregulated clients” of our electricity generation and distribution business, a formal procedure is applied to control the credit risk, using a systematic evaluation of our counterparties, index definition and credit risk factors by virtue of which the contracts are approved or additional guarantee demands are defined.

Furthermore, in our electricity generating business line, in the event of non-payment, some countries allow power supply cut-offs, and in almost all contracts such lack of payment is established as cause for contract termination. To this end, credit risks are constantly monitored and the maximum amounts exposed to payment risks are measured, which, as has been said, are limited.

In turn, in our electricity distribution business line, the energy supply cut-off is, in all cases, a power held by our companies when faced with default by our customers, applied in accordance with the regulation in force in each country, enabling the credit risk evaluation and control process, which in fact is also limited.

Pg. 28

PRESS RELEASE
First Half 2009 
 
  • Financial Assets:

Surplus cash flow investments are placed in prime national and foreign financial entities (with an investment grade equivalent risk rating) with established limits set for each entity (not more than 30% per entity).

In the selection of banks for investment, consideration is given to those that hold two investment grade classifications, considering the three main international risk agencies (Moody’s, S&P and Fitch).

Positions are backed up by treasury bonds from the country of operations and instruments issued by the most reputable banks, favoring, wherever possible, the first ones.

Derivatives are engaged through highly solvent entities such that about 90% of operations are carried out with entities that hold an A or higher rating.

Risk Measurement

The Enersis Group measures the Value at Risk of its debt and financial derivatives positions with a view to guaranteeing that the risk taken by the company remains consistent with the risk exposure defined by Management, thus restricting the volatility of its financial results.

The positions portfolio used in the calculations of the current Value at Risk is comprised of:

  • Debt
  • Financial Derivatives

The calculated Value at Risk represents the possible value loss of the aforementioned positions portfolio over one day time horizon with 95% probability. To this end the volatility of the risk variables that affect the value of the positions portfolio has been studied, including:

  • The U.S. dollar Libor interest rate.
  • The usual banking local indexes for debts, and taking into account the different currencies our companies operate under.
  • The exchange rates of the different currencies involved in the calculation.

The Value at Risk calculation, using the Montecarlo methods, is based on generating possible future scenarios (on a one-day time horizon) of the risk variables of the market values (both spot and timed). The number of scenarios generated ensures observance of the simulation’s convergence criteria. In the simulated scenarios of future prices the volatilities matrix and the correlations between the different risk variables calculated on historic price logarithmic returns are applied.

Once the price scenarios have been generated, the portfolio’s reasonable value is calculated for each one of the scenarios, generating an allotment of possible one-day values. The one-day Risk Value, calculated with a 95% of confidence, is rated as a 5% percentile of the possible increases of the portfolio’s reasonable value for one day.

The valuation of the diverse debt and financial derivative positions in the calculation has been consistent with the economic equity calculation method reported to Management.

Pg. 29

PRESS RELEASE
First Half 2009 
 

In view of the aforementioned hypothesis, the Value at Risk of the positions mentioned above, broken down by type of position, is detailed in the following table:

  31/12/2008  30/06/2009 
Financial positions:  Th Ch$  Th Ch$ 
   Interest rates  19,684,705  25,314,568 
   Exchange rates  4,093,964  3,994,034 
   Correlations  (4,547,152) (3,994,034)
Total  19,231,517  25,314,568 

Value at Risk positions have evolved during the 1st semester of 2009, as a function of the expiration/initiation of operations throughout the period.

Other Risks

A portion of Enersis and Endesa Chile’s debt is subject to cross default provisions. If certain defaults in debt of certain specific subsidiaries are not remedied within specified grace periods, a cross default could affect Endesa Chile and Enersis, and under certain scenarios, debts at the holding company level could be accelerated.

Nonpayment – after any applicable grace period – of the debts of Enersis and Endesa Chile, or their so-called Relevant Subsidiaries, with an individual principal amount outstanding in excess of fifty million dollars (or its equivalent in other currencies), and with a missed payment also in excess of fifty million dollars, could give rise to a cross default of several bank revolving debt facilities at the Endesa Chile and Enersis levels. Furthermore, some of these debt facilities are also subject to cross acceleration provisions in the event of a default in other Relevant Subsidiary debt, for reasons other than payment default, for events such as bankruptcy, insolvency proceedings, and materially adverse governmental or legal actions, in all cases for amounts in excess of fifty million dollars.

Similarly, nonpayment – after any given applicable grace period - of the debts of these companies or any of their Chilean subsidiaries, in single indebtedness in default with a principal in excess of thirty million dollars, could potentially give rise to a cross default of Enersis and Endesa Chile Yankee bonds. After an amendment to the Yankee Bond Indentures executed on July 24, 2009, no subsidiary outside Chile can trigger the cross default and bankruptcy/insolvency clauses of the Yankee Indentures.

Pg. 30

PRESS RELEASE
First Half 2009 
 

BOOK VALUE AND ECONOMIC VALUE OF ASSETS

Regarding the more important assets, the following should be mentioned:

Properties, Plants and Equipment are valued at their purchase cost, net of the corresponding accumulated depreciation and impairment loss they have been subject to. Properties, Plants and Equipment, net of their residual value, if applicable, are depreciated by linearly distributing the cost of their different elements along the estimated years of useful life, which is the period that the companies expect to use them. The useful life is reviewed regularly.

The capital gain (lower investments or goodwill value) generated by consolidation represents the acquisition cost surplus on the Group’s share in terms of the reasonable value of assets and liabilities, including the identifiable contingent liabilities of a Subsidiary at the time of acquisition. Capital gain is not amortized, rather at the closing of each accounting period an assessment is made of whether any impairment has occurred during the period that could reduce its recoverable value to an amount below the registered net cost, proceeding in this event to make a timely impairment adjustment (See Note 3.d to the Consolidated Financial Statements).

Throughout the fiscal year and in particular at the date of closing, an assessment is made as to any indication of possible loss due to the impairment of any asset. In the event of any such indication, an estimate of the recoverable sum of said asset is made to determine, if applicable, the depreciated amount. If this involves identifiable assets that do not originate independent cash flows, the recoverability of the Cash Generating Unit that the asset belongs to is estimated, understanding as such the smaller Group of identifiable assets that generate independent cash incomes. As a result of this assessment, it has been determined that there is no impairment associated to businesses acquired, with the exception of the investment of our joint subsidiary Gas Atacama Holding Ltda., whose proof of depreciation determined that during 2007 the value recovered from said investment was in fact lower than its book value, thereby making provision for such.

Assets expressed in foreign currency are submitted at the prevalent exchange rate at the closing of the period.

Notes and accounts receivable from related companies are classified according to their short and long term maturities. These operations are adjusted according to prevalent market equity conditions.

In summary, assets are valued according to the International Financial Reporting Standards, whose criteria are expressed in Note 3 of the Consolidated Financial Statements.

Pg. 31

PRESS RELEASE
First Half 2009 
 

ARGENTINA

GENERATION

ENDESA COSTANERA

Operating Income amounted to Ch$6,722 million, a drop of 60.2% versus the same period of the preceding year. While physical sales increased by 8.9% over the first semester, the drop in average prices led to a 9.2% decrease in operating revenues. In comparing both periods, operating costs declined 5%, mainly explained by lower fuel consumption due to increased gas availability.

Table 15                   
                   
Endesa Costanera  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  143,323    130,155    (13,168)   (9.2%)   244,762 
Operating Costs  (110,160)   (104,224)   5,937    5.4%    (195,998)
Gross Profit  33,163    25,931    (7,232)   (21.8%)   48,765 
Other Costs  (7,419)   (9,268)   (1,849)   (24.9%)   (17,430)
                   
Gross Operating Income (EBITDA) 25,744    16,663    (9,081)   (35.3%)   31,335 
                   
Depreciation and Amortization  (8,846)   (9,941)   (1,095)   (12.4%)   (18,694)
                   
Operating Income  16,898    6,722    (10,176)   (60.2%)   12,641 
                   
Figures may differ from those accounted under Argentine GAAP. 

Additional Information

Table 16

 
Endesa Costanera    6M 08    6M 09    Var 08-09    Chg % 
 
GWh Produced    4,639    5,028    389    8.4% 
GWh Sold    4,639    5,052    413    8.9% 
Market Share    8.8%    9.7%    -    10.7% 
 


Pg. 32

PRESS RELEASE
First Half 2009 
 

EL CHOCÓN

Chocón showed improved dam levels at the onset of this year, thereby providing improved water availability. This led to an increase in operating income that totaled Ch$16,727 million as of June, 2009, resulting from a 64.1% growth in physical sales compared to the first semester of the previous year.

Table 17                   
                   
El Chocón  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  20,708    30,720    10,012    48.4%    57,771 
Operating Costs   (9,713)   (9,705)   8    0.1%    (18,251)
Gross Profit  10,994    21,015    10,021    91.1%    39,521 
Other Costs   (1,999)   (2,467)   (468)   (23.4%)   (4,639)
                   
Gross Operating Income (EBITDA) 8,996    18,549    9,553    106.2%    34,881 
                   
Depreciation and Amortization   (1,759)   (1,821)   (62)   (3.5%)   (3,425)
                   
Operating Income  7,237    16,727    9,491    131.1%    31,457 
                   
Figures may differ from those accounted under Argentine GAAP. 

Additional Information

Table 18

 
El Chocón    6M 08    6M 09    Var 08-09    Chg % 
 
GWh Produced    701    1,533    833    118.8% 
GWh Sold    1,067    1,750    684    64.1% 
Market Share    2.0%    3.4%    -    66.7% 
 


Pg. 33

PRESS RELEASE
First Half 2009 
 

DISTRIBUTION

EDESUR

Our subsidiary Edesur showed an increase in operating income of Ch$995 million, going from Ch$23,678 million as of June, 2008 to Ch$24,673 million for the current period. This is mainly due to an increase in average sales prices, partially offset by an increase in energy purchases, an increase in operating and maintenance expense, as well as personnel costs. Physical sales dropped 1.0%, totaling 7,970 GWh for the period ending June, 2009. Energy losses declined to a 10.5% (as of June 2008, these were at 10.8%) and the number of customers increased in 37 thousand, totaling 2.3 million.

Table 19                   
                   
Edesur  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  162.778    182.538    19.760    12,1%    343.271 
Operating Costs  (81.078)   (87.188)   (6.110)   (7,5%)   (163.962)
Gross Profit  81.700    95.350    13.650    16,7%    179.310 
Other Costs  (49.155)   (61.877)   (12.722)   (25,9%)   (116.362)
                   
Gross Operating Income (EBITDA) 32.545    33.473    928    2,9%    62.948 
                   
Depreciation and Amortization  (8.867)   (8.800)   67    0,8%    (16.549)
                   
Operating Income  23.678    24.673    995    4,2%    46.399 
                   
Figures may differ from those accounted under Argentine GAAP. 

Additional Information

Table 20

 
Edesur    6M 08    6M 09    Var 08-09    Chg % 
 
Customers (Th)   2,244    2,281    37    1.7% 
GWh Sold    8,047    7,970    (77)   (1.0%)
Clients/Employee    851    861    10    1.2% 
Energy Losses %    10.8%    10.5%    (0.3%)   (2.5%)
 


Pg. 34

PRESS RELEASE
First Half 2009 
 


BRAZIL

GENERATION

CACHOEIRA

Operating Income from our subsidiary Cachoeira decreased Ch$51,132 million going from Ch$76,298 million in the first semester of 2008 to Ch$25,166 million at June 30, 2009. This drop is an outcome of the drop in market sales prices, which at the preceding year had been very high, as well as lower energy sales which in this semester totaled 1,712 GWh (2,134 GWh in June 2008). The conversion effect on these financial statements from the Brazilian Real to the Chilean Peso, in both periods, produced a drop, in pesos, of 13.8% as of June 2009, versus June 2008.

Table 21                   
                   
Cachoeira  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  94,787    42,622    (52,165)   (55.0%)   80,153 
Operating Costs  (11,247)   (10,587)   661    5.9%    (19,909)
Gross Profit  83,540    32,036    (51,504)   (61.7%)   60,244 
Other Costs  (3,212)    (3,548)   (336)   (10.5%)   (6,672)
                   
Gross Operating Income (EBITDA) 80,328    28,488    (51,840)   (64.5%)   53,573 
                   
Depreciation and Amortization  (4,030)    (3,322)   708    17.6%    (6,248)
                   
Operating Income  76,298    25,166    (51,132)   (67.0%)   47,325 
                   
Figures may differ from those accounted under Brazilian GAAP. 

Additional Information

Table 22

 
Cachoeira    6M 08    6M 09    Var 08-09    Chg % 
 
GWh Produced    1,532    1,325    (207)   (13.5%)
GWh Sold    2,134    1,712    (421)   (19.8%)
Market Share    1.0%    0.9%    -    (8.3%)
 

FORTALEZA (CGTF)

Operating Income amounted Ch$18,544 million, indicating an increase of Ch$5,213 million over the year 2008 when the operating income totaled Ch$13.331 million. This increase is mainly due to lower energy purchasing costs for the period, resulting from the drop in market purchase prices with respect to the same period of the preceding year, and partially offset by the increase in purchase quantities that ranged from 1,272 GWh the previous year to a current 1,558 GWh. Physical sales totaled 1,651 GWh as of June, 2009 (1,338 GWh for 2008). The conversion effect on these financial statements from the Brazilian Real to the Chilean Peso, in both periods, produced a drop, in pesos, of 13.8% as of June 2009, versus June 2008.

Pg. 35

PRESS RELEASE
First Half 2009 
 


Table 23                   
                   
Fortaleza  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  61,695    62,659    964    1.6%    117,833 
Operating Costs  (40,303)   (35,519)   4,784    11.9%    (66,795)
Gross Profit  21,392    27,140    5,748    26.9%    51,038 
Other Costs  (4,030)    (4,941)   (911)   (22.6%)   (9,292)
                   
Gross Operating Income (EBITDA) 17,361    22,199    4,837    27.9%    41,745 
                   
Depreciation and Amortization  (4,030)    (3,655)   376    9.3%    (6,873)
                   
Operating Income  13,331    18,544    5,213    39.1%    34,872 
                   
Figures may differ from those accounted under Brazilian GAAP. 

Additional Information

Table 24

 
Fortaleza    6M 08    6M 09    Var 08-09    Chg % 
 
GWh Produced    81    95    14    17,5% 
GWh Sold    1.338    1.651    313    23,4% 
Market Share    0,7%    0,9%    -    28,7% 
 

TRANSMISSION

CIEN

Operating Income as of June 2009 totaled Ch$35,781 million, which is Ch$27,498 million over the June, 2008 figure which was recorded at Ch$8,283 million. During the 2009 period, the company exported energy to Uruguay and Argentina, initiating this activity in the month of February unlike the preceding year when exports to Argentina only started in April. The conversion effect on these financial statements from the Brazilian Real to the Chilean Peso, in both periods, produces a drop, in pesos, of 13.8% as of June 2009, versus June 2008.

Table 25                   
                   
Cien  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  23,816    51,798    27,982    117.5%    97,408 
Operating Costs  (2,538)   (1,212)   1,326    52.2%     (2,280)
Gross Profit  21,278    50,586    29,308    137.7%    95,129 
Other Costs  (5,145)   (5,340)   (194)   (3.8%)   (10,041)
                   
Gross Operating Income (EBITDA) 16,132    45,246    29,114    180.5%    85,088 
                   
Depreciation and Amortization  (7,849)   (9,465)   (1,616)   (20.6%)   (17,799)
                   
Operating Income  8,283    35,781    27,498    332.0%    67,289 
                   
Figures may differ from those accounted under Brazilian GAAP. 

Pg. 36

PRESS RELEASE
First Half 2009 
 

Additional Information

DISTRIBUTION

AMPLA

Operating Income amounted to Ch$76,273 million which, compared to the same period of the preceding year, represents a drop of 13.1% or Ch$11,464 million. This result is due mainly to a lower energy purchase-sales margin resulting from a lower average sales price, partially offset by a 1.4% increase in physical sales amounting 4,660 GWh over the current period. Energy losses remained stable at 20.6% . The number of Ampla customers increased by 64 thousand, totaling 2.5 million. The conversion effect on these financial statements from the Brazilian Real to the Chilean Peso, in both periods, produced a drop, in pesos, of 13.8% as of June 2009, versus June 2008.

Table 26                   
                   
Ampla  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  450.156    428.004    (22.152)   (4,9%)   804.883 
Operating Costs  (277.162)   (258.920)   18.242    6,6%    (486.911)
Gross Profit  172.994    169.084    (3.910)   (2,3%)   317.971 
Other Costs  (60.765)   (68.298)   (7.533)   (12,4%)   (128.437)
                   
Gross Operating Income (EBITDA) 112.229    100.787    (11.442)   (10,2%)   189.534 
                   
Depreciation and Amortization  (24.492)   (24.514)   (22)   (0,1%)   (46.100)
                   
Operating Income  87.737    76.273    (11.464)   (13,1%)   143.435 
                   
Figures may differ from those accounted under Brazilian GAAP. 

Additional Information

Table 27

 
Ampla    6M 08    6M 09    Var 08-09    Chg % 
 
Customers (Th)   2,430    2,493    64    2.6% 
GWh Sold    4,597    4,660    62    1.4% 
Clients/Employee    1,783    1,953    170    9.5% 
Energy Losses %    20.6%    20.6%    0.0%    0.2% 
 

Pg. 37

PRESS RELEASE
First Half 2009 
 

COELCE

Operating Income decreased by Ch$5,726 million, amounting to Ch$63,823 million for the current period. This cut in operating income is mainly due to a lower energy purchase-sales margin during the current period and greater toll costs, partially offset by an increase in physical sales of 3.6%, amounting to 3,695 GWh, and a drop in energy losses that went from 12.0% in June, 2008 to 11.6% in June, 2009. The number of customers totaled 2.9 million, representing an increase of 146 thousand in terms of the same period of 2008, or 5.3% . The conversion effect on these financial statements from the Brazilian Real to the Chilean Peso, in both periods, produced a drop, in pesos, of 13.8% as of June 2009, versus June 2008.

Table 28                   
                   
Coelce  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  305.322    297.441    (7.881)   (2,6%)   559.352 
Operating Costs  (173.204)   (170.341)   2.863    1,7%    (320.334)
Gross Profit  132.118    127.100    (5.018)   (3,8%)   239.018 
Other Costs  (44.041)   (43.507)   533    1,2%     (81.817)
                   
Gross Operating Income (EBITDA) 88.078    83.593    (4.485)   (5,1%)   157.200 
                   
Depreciation and Amortization  (18.529)   (19.770)   (1.242)   (6,7%)    (37.179)
                   
Operating Income  69.549    63.823    (5.726)   (8,2%)   120.021 
                   
Figures may differ from those accounted under Brazilian GAAP. 

Additional Information

Table 29

 
Coelce    6M 08    6M 09    Var 08-09    Chg % 
 
Customers (Th)   2,756    2,903    146    5.3% 
GWh Sold    3,567    3,695    128    3.6% 
Clients/Employee    2,179    2,262    83    3.8% 
Energy Losses %    12.0%    11.6%    (0.4%)   (3.0%)
 


Pg. 38

PRESS RELEASE
First Half 2009 
 


CHILE

GENERATION

ENDESA CHILE

Consolidated Income Statement of Endesa Chile

Table 30 
                   
Endesa Chile  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  1,200,293    1,260,985    60,692    5.1%    2,371,341 
Operating Costs  (687,937)   (530,212)   157,725    22.9%    (997,089)
Gross Profit  512,356    730,772    218,417    42.6%    1,374,252 
Other Costs  (75,226)   (85,632)   (10,406)   (13.8%)   (161,035)
                   
Gross Operating Income (EBITDA) 437,130    645,140    208,011    47.6%    1,213,217 
                   
Depreciations and Amortizations  (93,346)   (98,675)   (5,330)   (5.7%)   (185,563)
                   
Operating Income  343,784    546,465    202,681    59.0%    1,027,654 
                   
Financial Result  (62,964)   (98,750)   (35,786)   (56.8%)   (185,704)
             Interest Income  14,838    17,100    2,262    15.2%    32,157 
             Interest Expenses  (95,630)   (99,145)   (3,515)   (3.7%)   (186,446)
             Income for Readjustment Items  (5,053)   9,657    14,710    291.1%    18,160 
             Exchange gains (losses) 22,881    (26,362)   (49,244)   (215.2%)   (49,576)
                           Positive  28,046    12,762    (15,284)   (54.5%)   24,000 
                           Negative  (5,165)   (39,125)   (33,960)   (657.5%)   (73,576)
Net Income from financial Items  (97,178)   (97,178)   -    0.0%    (183)
Share of profit of associates  49,878    43,697    (6,181)   (12.4%)   82,175 
Income from Other Investments  43    -    (43)   (100.0%)   - 
Income from asset sales  (205)   (16)   190    92.4%    (29)
                   
Net Income before Taxes  330,536    491,397    160,860    48.7%    924,095 
                   
             Income Tax  (68,189)   (83,111)   (14,922)   (21.9%)   (156,294)
                   
Net Income before gains (losses) from discounted                   
operations, net from taxes  262,348    408,286    145,938    55.6%    767,801 
                   
                   
                   
NET INCOME  262,348    408,286    145,938    55.6%    767,801 
                   
             Parent Company  201,503    331,237    129,735    64.4%    622,908 
                   
             Minority Holders  60,845    77,048    16,203    26.6%    144,893 
                   
*Includes generation subsidiaries in Chile, Argentina, Colombia and Peru. 

Chilean Operations

The operating income in Chile amounted Ch$342,138 million, increasing an 87.2% over the Ch$182,785 million figure recorded in the same period of 2008. This growth is mainly explained by the 32.0% drop in operating costs, resulting from lower energy purchases, that amount to Ch$48,942, as well as by lower fuel consumption, in the order of Ch$108,443, product of improved hydrology throughout the period that lead to less petroleum based thermal generation at lower prices than the previous period. Operating Revenues increased by 2.0% due to higher sales volume, particularly with regard to the energy sold on the spot market that increased by 57%. Production rise 5.3% versus the same period of the preceding year, amounting to 10,375 GWh over the first semester of 2009. The EBITDA of the business in Chile, or its gross operating income, totaled Ch$390,904 million as of June, 2009 compared to Ch$227,186 million at June 2008.

Pg. 39


PRESS RELEASE
First Half 2009 
 

Table 31                   
                   
Chilean Operations  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  724,409    738,907    14,498    2.0%    1,389,549 
Operating Costs  (465,906)   (316,987)   148,919    32.0%    (596,109)
Gross Profit  258,503    421,920    163,416    63.2%    793,440 
Other Costs  (31,318)   (31,015)   302    1.0%    (58,326)
   
Gross Operating Income (EBITDA) 227,186    390,904    163,718    72.1%    735,114 
   
Depreciation and Amortization  (44,401)   (48,767)   (4,366)   (9.8%)   (91,708)
   
Operating Income  182,785    342,138    159,353    87.2%    643,406 
   

Additional Information

Table 32

 
Chilean Companies    6M 08    6M 09    Var 08-09    Chg % 
 
GWh Produced    9,850    10,375    525    5.3% 
GWh Sold    10,068    10,515    448    4.4% 
Market Share    38.2%    39.9%    -    4.5% 
 

DISTRIBUTION

CHILECTRA

Our Chilean subsidiary, Chilectra, showed an operating income of Ch$73,858 million representing a decrease of Ch$1,731 million, or a 2.3%, compared to the same period of the previous year. This was mainly due to a 1.2% drop in physical energy sales amounting to 6,175 GWh as of June, 2009 and a lower VAD index as a result of the November 2008 tariff setting.

Pg. 40

PRESS RELEASE
First Half 2009 
 


Table 33                   
                   
Chilectra  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  501,828    579,638    77,810    15.5%    1,090,036 
Operating Costs  (377,726)   (453,064)   (75,338)   (19.9%)   (852,008)
Gross Profit  124,102    126,574    2,471    2.0%    238,028 
Other Costs  (38,808)   (41,554)   (2,747)   (7.1%)   (78,145)
                   
Gross Operating Income (EBITDA) 85,295    85,019    (276)   (0.3%)   159,882 
                   
Depreciation and Amortization  (9,706)   (11,162)   (1,456)   (15.0%)   (20,990)
                   
Operating Income  75,589    73,858    (1,731)   (2.3%)   138,893 
                   
Financial Result  (5,013)   (4,299)   713    14.2%    (8,085)
   Interest Income  5,131    4,667    (464)   (9.0%)   8,776 
   Interest Expense  (9,587)   (9,082)   506    5.3%    (17,078)
   Income for Readjustment items  (2,339)   (583)   1,756    75.1%    (1,096)
   Exchange gains (losses) 1,783    698    (1,084)   (60.8%)   1,314 
       Positive 
 11,656    1,502    (10,155)   (87.1%)   2,824 
       Negative 
 (9,873)   (803)   9,070    91.9%    (1,510)
Share of profit of associates  41,358    37,586    (3,773)   (9.1%)   70,682 
Income from Other Investments  -    759    759    -    1,426 
Income from assets sales  -    (330)   (330)   -    (620)
                   
Net Income before Taxes  111,934    107,573    (4,362)   (3.9%)   202,296 
                   
   Income Tax  (8,360)   (7,409)   951    11.4%    (13,933)
                   
Net Income before gains (losses) from  103,574    100,164    (3,411)   (3.3%)   188,363 
discounted operations, net from taxes                   
                   
 
                   
NET INCOME  103,574    100,164    (3,411)   (3.3%)   188,363 
                   
   Parent Company  100,748    98,890    (1,858)   (1.8%)   185,967 
                   
   Minority Holders  2,827    1,274    (1,553)   (54.9%)   2,396 
                   

Additional Information

Table 34

 
Chilectra    6M 08    6M 09    Var 08-09    Chg % 
 
Customers (Th)   1,509    1,559    50    3.3% 
GWh Sold    6,249    6,175    (75)   (1.2%)
Clients/Employee    2,056    2,141    85    4.1% 
Energy Losses %    6.2%    5.9%    (0.3%)   (4.1%)
 


Pg. 41

PRESS RELEASE
First Half 2009 
 

COLOMBIA

GENERATION

EMGESA

Operating Income amounted to Ch$128,778 million as of June, 2009, an 18.0% higher than the same period in 2008. This growth in income is accounted for mainly by a 13.1% increase in operating revenues for the first semester of 2009 due to a 6.3% rise in physical sales volume as well as higher average sales prices. These higher average prices during the first semester of 2009 are a product of diminished hydrology in the current period versus the preceding year. Operating Expenditures increased by 7.6% mainly due to greater energy purchasing and a higher level of fuel consumption. Emgesa’s EBITDA, or gross operating income, increased by 14.7% as of June 2009, amounting to Ch$146,504 million. The conversion effect on these financial statements from the Colombian Peso to the Chilean Peso, in both periods, produced a drop, in pesos, of 11.7% as of June 2009, versus June 2008.

Table 35                   
                   
Emgesa  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  207,355    234,471    27,116    13.1%    440,933 
Operating Costs   (65,749)   (72,061)   (6,313)   (9.6%)   (135,515)
Gross Profit  141,606    162,409    20,803    14.7%    305,418 
Other Costs   (13,876)   (15,905)   (2,029)   (14.6%)   (29,911)
                   
Gross Operating Income (EBITDA) 127,730    146,504    18,774    14.7%    275,507 
                   
Depreciation and Amortization   (18,633)   (17,726)   907    4.9%    (33,335)
                   
Operating Income  109,097    128,778    19,681    18.0%    242,173 
                   
* Please notice that these figures could differ from those accounted under Colombian GAAP. 

Additional Information

Table 36

 
Emgesa    6M 08    6M 09    Var 08-09    Chg % 
 
GWh Produced    6,004    6,634    629    10.5% 
GWh Sold    7,891    8,391    500    6.3% 
Market Share    21.7%    21.2%    -    (2.7%)
 


Pg. 42

PRESS RELEASE
First Half 2009 
 

DISTRIBUTION

CODENSA

Operating Income amounted to Ch$98,430 million as of June, 2009, representing a decline of Ch$3,811 million or a 3.7% decrease compared to the same period of the previous year. This decline is mainly due to a lower energy purchase-sales margin for the period and also to a 0.5% decrease in energy sales, amounting to 5,812 GWh and a 1.5% increase in energy losses that went from 8.1% as of June, 2008 to 8.2% at the end of the current period. The number of customers increased by 80 thousand, totaling 2.3 million as of June, 2009. The conversion effect on these financial statements from the Colombian Peso to the Chilean Peso, in both periods, produced a drop, in pesos, of 11.7% as of June 2009, versus June 2008.

Table 37                   
                   
Codensa  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  345.265    354.228    8.963    2,6%    666.142 
Operating Costs  (170.977)   (183.895)   (12.918)   (7,6%)   (345.823)
Gross Profit  174.288    170.333    (3.955)   (2,3%)   320.319 
Other Costs   (43.345)   (43.994)   (649)   (1,5%)    (82.733)
                   
Gross Operating Income (EBITDA) 130.943    126.339    (4.604)   (3,5%)   237.586 
                   
Depreciation and Amortization  (28.702)   (27.909)   793    2,8%     (52.485)
                   
Operating Income  102.241    98.430    (3.811)   (3,7%)   185.102 
                   
* Please notice that these figures could differ from those accounted under Colombian GAAP. 

Additional Information

Table 38

 
Codensa    6M 08    6M 09    Var 08-09    Chg % 
 
Customers (Th)   2,245    2,325    80    3.6% 
GWh Sold    5,842    5,812    (30)   (0.5%)
Clients/Employee    2,373    2,473    100    4.2% 
Energy Losses %    8.1%    8.2%    0.1%    1.5% 
 


Pg. 43

PRESS RELEASE
First Half 2009 
 

PERU

GENERATION

EDEGEL

Operating Income increases was recorded at Ch$48.029 million, representing an increase of Ch$24,615 million over June 2008, the equivalent of 105.1% . The aforementioned is explained by an increase of 2.4% in energy sales resulting from a higher hydraulic delivery due to increased hydrological levels, while the average prices during the first semester of 2009 remained stable compared with same period of 2008. In turn, operating costs reflected a drop of 25.2% as of June 2009, as a result of lower fuel consumption due to increased hydraulic production. Edegel’s EBITDA amounted to Ch$67,023 million accumulated as of June 2009 compared to an accumulated figure of Ch$41,468 for the period ending June, 2008.

Table 39                   
                   
Edegel  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  90,063    109,726    19,663    21.8%    206,346 
Operating Costs  (36,401)   (27,233)   9,168    25.2%    (51,213)
Gross Profit  53,662    82,493    28,831    53.7%    155,132 
Other Costs  (12,194)   (15,471)   (3,276)   (26.9%)   (29,093)
                   
Gross Operating Income (EBITDA) 41,468    67,023    25,555    61.6%    126,039 
                   
Depreciation and Amortization  (18,054)   (18,993)   (939)   (5.2%)   (35,718)
                   
Operating Income  23,414    48,029    24,615    105.1%    90,321 
                   
* Please notice that these figures could differ from those accounted under Peruvian GAAP. 

Additional Information

Table 40

 
Edegel    6M 08    6M 09    Var 08-09    Chg % 
 
GWh Produced    4,119    4,301    182    4.4% 
GWh Sold    4,194    4,295    101    2.4% 
Market Share    31.5%    32.1%    -    1.8% 
 


Pg. 44

PRESS RELEASE
First Half 2009 
 

DISTRIBUTION

EDELNOR

Our subsidiary Edelnor showed an operating income of Ch$32,674 million, Ch$5,100 million higher than the figure for the same period of the preceding year when it amounted to Ch$27,574 million. This is mainly due to greater energy demand and greater purchase-sales margins. The increase in demand, especially the growth in sales to regulated customers, contributed to improve unit sales margin. Physical sales energy increased by 2.1% amounting to 2,836 GWh, for the period. The number of customers grew by 38 thousand clients, totaling 1 million. Energy losses reached to 8.1% versus the 8.2% for the same period of the previous year.

Table 41                   
                   
Edelnor  Million Ch$    Thousand US$ 
     
  6M 08    6M 09    Var 08-09    Chg %    6M 09 
                   
Operating Revenues  125.792    153.805    28.013    22,3%    289.238 
Operating Costs  (72.629)   (94.182)   (21.552)   (29,7%)   (177.113)
Gross Profit  53.163    59.624    6.460    12,2%    112.125 
Other Costs  (15.130)   (16.493)   (1.363)   (9,0%)   (31.017)
                   
Gross Operating Income (EBITDA) 38.033    43.130    5.097    13,4%    81.108 
                   
Depreciation and Amortization  (10.459)   (10.456)   3    0,0%    (19.663)
                   
Operating Income  27.574    32.674    5.100    18,5%    61.446 
                   
* Please notice that these figures could differ from those accounted under Peruvian GAAP. 

Additional Information

Table 42

 
Edelnor    6M 08    6M 09    Var 08-09    Chg % 
 
Customers (Th)   1,006    1,044    38    3.8% 
GWh Sold    2,777    2,836    59    2.1% 
Clients/Employee    1,787    1,703    (84)   (4.7%)
Energy Losses %    8.2%    8.1%    (0.1%)   (1.2%)
 


Pg. 45

PRESS RELEASE
First Half 2009 
 


CONFERENCE CALL INVITATION

Enersis is pleased to invite you to participate in a Conference Call with the management to review the results for the period, on Thursday, July 30th, 2009, 12:00 noon Eastern Time (12:00 noon Chilean Time). There will be a question and answer session following management's comments. Representing ENERSIS will be Mr. Alfredo Ergas, Chief Financial Officer, Mr. Ricardo Alvial, Investment & Risks Director and Ms. Susana Rey, Head of Investor Relations.

To participate, please dial +1 (617) 213-4864 or +1 (888) 713-4211 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 51767592

To access the phone replay, please dial +1 (617) 801-6888 or +1 (888) 286-8010 (toll free USA) Passcode ID: 99811022.

For this Conference Call you can access before to the pre-registration site at https://www.theconferencingservice.com/prereg/key.process?key=PTA4XCUT9 and make your registration quicker. If not, please connect approximately 15 minutes prior to the scheduled start time. You can also access to the live conference call and its replay through our website at http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=83615&eventID=2319356.

Pg. 46

PRESS RELEASE
First Half 2009 
 

CONTACT INFORMATION

For further information, please contact us:

Susana Rey
Head of Investor Relations
srm@e.enersis.cl
56 (2) 353 4554
 
 
Carmen Poblete    Denisse Labarca    Bárbara López    Cristián Del Sante 
Shares Department    Investor Relations    Investor Relations    Investor Relations 
Representative    Representative    Representative    Representative 
cpt@e.enersis.cl    dla@e.enersis.cl    bllf@e.enersis.cl    cdb@e.enersis.cl 
56 (2) 353 4447    56 (2) 353 4492    56 (2) 353 4552    56 (2) 353 4555 
 
 
María Luz Muñoz
Investor Relations
Assistant
mlmr@e.enersis.cl
56 (2) 353 4682

DISCLAIMER

This Press Release 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 Enersis and its management with respect to, among other things: (1) Enersis’ business plans; (2) Enersis’ cost-reduction plans; (3) trends affecting Enersis’ 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 Enersis’ 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 Enersis’ 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. Enersis undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.

Pg. 47

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  ENERSIS S.A. 
   
  By: /s/ Ignacio Antoñanzas 
  -------------------------------------------------- 
   
  Title: Chief Executive Officer 

Date: July 30, 2009