6-K 1 enipr4q09_6k.htm CONSOLIDATED RESULTS 4 Q 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 January, 2010

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
Year Ended 2009 
 

ENERSIS
ANNOUNCES CONSOLIDATED RESULTS
FOR YEAR ENDED DECEMBER 31st, 2009

Highlights for the Period 

SUMMARY

• For the year ended on December 31st, 2009, Enersis’ Net Income attributable to the Parent Company was Ch$660,231 million, an increase of 30% with respect to the same period in 2008.

• Despite the recent tightening environment as consequence of the global economic recession, we registered an increase of 3.4% in physical sales in generation, and 1% increase in physical sales in distribution. This confirms the stability of our business.

• Adequate commercial and operating policies applied within the Group and the efficiency achieved across our companies allowed a continuous improvement in profitability even in a difficult economic scenario.

• Our flexible investment plan has been adapted to the new market conditions, always maintaining our commitment to provide the best service quality to our clients and to keep our liquidity at optimal levels.

Consolidated figures are detailed as follows:

• Operating Costs decreased 3.6% amounting to Ch$4,525,252 million.

• EBITDA (Gross Operating Income) increased 7.2% to Ch$2,444,934.

• Operating Income grew 3.3% up to Ch$ 1,924,636 million, as a result of the better performance of the Generation and Transmission Businesses.

• The relative contribution of the two lines of business is as follows:

• Generation and Transmission     61%

• Distribution                                39%

GENERATION AND TRANSMISSION BUSINESSES

Consolidated results figures for the Generation and Transmission Businesses are detailed as follows:

• Operating Costs decreased 15.3% .

• EBITDA increased 16.2%, amounting to Ch$1,462,993 million.

• Operating Income increased 14.2% amounting to Ch$1,192,408 million, mainly explained by the performance of the operations in Chile, Colombia and Peru.

Factors that impacted these results are:

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PRESS RELEASE
Year Ended 2009 
 

• Consolidated physical sales level grew by 3.4% .

• Hydro generation showed an 5.8% overall increase.

• During 2009, WTI reached an average price of US$ 68.2/barrel, representing a 32% average annual drop.

In Chile, Contribution margin increased 17%, which is explained mainly by the following:

• Lower liquid fuel prices and purchases.
• Better purchase-production mix due to higher hydrology.
• Higher gas availability improving efficiency.

In Colombia, Contribution margin increased 16%, which is explained mainly by the following:

• Higher sales prices, partially explained by the “El niño” phenomenon.
• Higher sale volume of contracted energy.

In Peru, Contribution margin increased 29%, as a result of:

• Better purchase-production mix due to higher hydrology, and
• Lower purchase costs in the spot market.

In Argentina, Contribution margin increased 11%, as a result of:
• Better purchase-production mix due to higher hydrology.

In Brazil, Contribution margin increased 8%, as a result of:
• Lower energy purchase costs.

DISTRIBUTION BUSINESS

Consolidated figures for the Distribution Business are detailed as follows:

• Operating Revenues increased 4.1%, amounting Ch$ 4,218,450 million.

• Operating income decreased by 7.5% amounting to Ch$761,417 million, mainly explained by Chilectra’s tariffs revisions, partially offset by positive performance of Ampla, Coelce, and Edelnor.

Factors that influenced these results are the following:

• Lower sales-purchase margins, partially compensated by:

• Consolidated physical sales grew by 1.0% with respect to 2008, mainly explained by demand growth in our subsidiaries in Brazil and Peru.

• Addition of 375 thousand new clients. This is equivalent to the incorporation of a new mid size Distribution Company every year.

In Chile, Contribution margin decreased 23%, which is explained mainly by the following:

• Lower sales-purchase margins resulting from lower VAD index as a result of the November 2008 tariff setting and Subtransmission decree which apply since January 2009.

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Year Ended 2009 
 

• Higher energy losses.

In Argentina, Contribution margin decreased 2%, as a result of:

• Lower sales-puchase margin, due to different clients’ mix.

In Brazil, Contribution margin increased 11%, as a result of:

• Higher average sales prices and tolls in Ampla,
• Higher average sales prices and lower energy losses in Coelce.

In Colombia, Contribution margin increased 6%, which is explained mainly by the following:

• Higher sales-purchase margins derived from lower hydrology in the system.

In Peru, Contribution margin increased 12%, as a result of:

• Higher sales-purchase margins
• Lower energy losses

FINANCIAL SUMMARY

• Consent solicitation approval for the Yankee Bonds of Enersis and Endesa Chile, restricting the cross default and insolvency clause only to the Issuer and its Chilean subsidiaries cross default and insolvency clauses. A default in our subsidiaries outside Chile no longer affects our yankee bonds.

• The average interest rate, a major cost factor, fell from 8.7% to 7.9%, a positive development for the overall Group.

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

• Non committed credit lines: US$ 550 million available in the aggregate for Enersis and Endesa Chile in the local markets, and committed credit lines for US$ 300 million in undrawn revolving debt facilities in the international markets and US$200 in the local markets.

• Cash and cash equivalents amount to US $2,238 million.

• Coverage and Protection: In order to mitigate exchange rate and interest rate risks, Enersis has established strict internal rules to protect our cash flows and balance sheet from variations in these variables. As a complement to these policies, we have contracted not-speculative-derivative instruments.

• Exchange rate policy is based on cash flows and it strives to maintain a balance between the flows indexed to US dollars and the assets and liabilities in such currency. In addition to this policy, we have contracted Cross currency swaps for a total amount of US$ 976 million and Forwards, for US$ 118 million.

• In order to reduce volatility on financial results due to changes in market rate, we attempt to maintain an adequate balance in debt structures. Additionally, we have contracted Interest rate swaps for US$ 382 million and Collars, for a value of US$ 40 million.

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PRESS RELEASE
Year Ended 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.

Enersis Debt management and Coverage and Protection internal policies explain the most important reason behind our solid liquidity position: the very stable nature of our business.

MARKET SUMMARY

During 2009, Chile’s Stock market showed a high relative performance compared to other world stock markets and continue showing strength having high exposure to sectors commonly considered as defensive. The IPSA registered the highest annual performance over the last 16 years, outperforming other world benchmarks: Dow Jones Industrials: +18.8%, S&P 500: +23.5%, UKX: +22.1%, FTSE 250: +46.3% and IBEX: +29.8% .

Enersis shares showed high performance in both of the markets where they are traded. Enersis’ ADRs outperformed representative US stock market indexes, showing a positive return of 79.4% . Following the Chilean Stock market, Enersis Share price increased 40.2% YTD from Ch$164.7 to Ch$230.9.

In addition, during this year, Enersis continued to be among the most traded companies at the Santiago Stock Exchange, with an average trading volume of US$ 7.8 million in 2009.

Top Five Daily Average Traded Amount at SSE in 2009
 
Thousand US$  
 
SQM-B    17,608 
D&S    16,289 
ENDESA CHILE    8,468 
ENERSIS    7,840 
CAP    7,582 
 
         Source: Santiago Stock Exchange 

RISK RATING CLASSIFICATION INFORMATION

Enersis credit profile has continued to strengthen in 2009, with improvements in the liquidity position and reduction of leverage levels. The positive perspective of the operational and credit profile of Enersis has been reflected in the very recent upgrade made by Fitch Ratings to our Foreign and Local Currency Issuer Default Ratings and Enersis Yankee Bonds to “BBB+” from “BBB”. Similarly, it made an upgrade of our Domestic Ratings to AA from AA-.

The new ratings are further supported by its diversified asset portfolio, strong credit metrics, adequate debt composition and ample liquidity. Enersis' geographic diversification through Latin America provides a hedge to different regulations and weather conditions and, its operating subsidiaries are financially strong and have leading market positions.

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):

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Year Ended 2009 
 


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

Risk classification of the countries where Enersis has its operations also experienced positive changes during 2009. Moody's upgraded Peru's and Brazil’s foreign currency ratings to Investment grade level.

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PRESS RELEASE
Year Ended 2009 
 

TABLE OF CONTENTS

       Summary    1  
       Generation and Transmission Businesses    1  
       Distribution Business    2  
       Financial Summary    3  
       Market Summary    4  
       Risk Rating Classification Information    4  
     
TABLE OF CONTENTS    6  
 
GENERAL INFORMATION    8  
       SIMPLIFIED ORGANIZATIONAL STRUCTURE    9  
     
MARKET INFORMATION    10  
       EQUITY MARKET    10  
       DEBT MARKET    12  
     
CONSOLIDATED INCOME STATEMENT ANALYSIS    12  
       NET INCOME    12  
       UNDER IFRS    13  
       OPERATING INCOME    14  
       NET FINANCIAL INCOME    15  
       TAXES    15  
       CONSOLIDATED BALANCE SHEET ANALYSIS    16  
       ASSETS UNDER IFRS    16  
     
BOOK VALUE AND ECONOMIC VALUE OF ASSETS    18  
       LIABILITIES AND SHAREHOLDERS’ EQUITY UNDER IFRS    19  
       DEBT MATURITY WITH THIRD PARTIES, MILLION CH$    21  
       DEBT MATURITY WITH THIRD PARTIES, THOUSAND US$    22  
       EVOLUTION OF KEY FINANCIAL RATIOS    22  
     
CONSOLIDATED STATEMENTS OF CASH FLOWS ANALYSIS    24  
       UNDER IFRS    24  
       UNDER IFRS    25  
       CASH FLOW RECEIVED FROM FOREIGN SUBSIDIARIES BY ENERSIS, CHILECTRA AND ENDESA CHILE    26  
       CAPEX AND DEPRECIATION    27  
 
THE PRINCIPAL RISKS ASSOCIATED TO THE ACTIVITIES OF THE ENERSIS GROUP    27  
 
ARGENTINA    30  
       GENERATION    30  
       Endesa Costanera    30  
       El Chocón    30  
       DISTRIBUTION    31  
       Edesur    31  
     
BRAZIL    32  
       ENDESA BRASIL    32  
       GENERATION    32  
       Cachoeira    32  

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PRESS RELEASE
Year Ended 2009 
 


       Fortaleza (cgtf)   33  
       TRANSMISSION    33  
       CIEN    33  
       DISTRIBUTION    34  
       Ampla    34  
       Coelce    34  
     
CHILE    35  
       GENERATION    35  
       Endesa Chile    35  
       DISTRIBUTION    36  
       Chilectra    36  
     
COLOMBIA    38  
       GENERATION    38  
       Emgesa    38  
       DISTRIBUTION    38  
       Codensa    38  
     
PERU    39  
       GENERATION    39  
       Edegel    39  
       DISTRIBUTION    39  
       Edelnor    39  
       OPERATING INCOME BY SUBSIDIARY    40  
     
CONFERENCE CALL INVITATION    42  
       CONTACT INFORMATION    43  
       DISCLAIMER    43  

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PRESS RELEASE
Year Ended 2009 
 

GENERAL INFORMATION

(Santiago, Chile, Wednesday 27th, January 2010) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for year ended on December 31st, 2009. All figures are in Ch$, under International Financial Reporting Standards (IFRS). Variations refer to the period between December 31st, 2008 and December 31st, 2009.

Figures as of December 31st, 2009 are additionally translated into US$, merely as a convenience translation, using the exchange rate of US$1 = Ch$507.10 as of December 31st, 2009 for the Balance Sheet, and 2009 average exchange rate of US$1 = Ch$559.66 for the Income Statement, Cash Flow Statements, Capex and Depreciation.

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 P&L and Cash Flow Statements compared to the information as of December 31st, 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.

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PRESS RELEASE
Year Ended 2009 
 

SIMPLIFIED ORGANIZATIONAL STRUCTURE


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PRESS RELEASE
Year Ended 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):


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PRESS RELEASE
Year Ended 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):



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PRESS RELEASE
Year Ended 2009 
 

DEBT MARKET

Yankee Bonds Price Evolution

The following chart shows the pricing of our two 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.

CONSOLIDATED INCOME STATEMENT ANALYSIS

NET INCOME

Enersis’ Net Income attributable to parent company for the year 2009 was Ch$660,231 million, representing a 30.1% increase over the previous year, which was Ch$507,590 million.

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PRESS RELEASE
Year Ended 2009 
 

UNDER IFRS

Table 1             
           
CONS. INCOME STATEMENT   Million Ch$    Thousand US$ 
           
  2008  2009  Var 08-09  Chg %    2009 
           
             Sales  6,080,511  6,076,108  (4,403) (0.1%)   10,856,715 
                             Energy sales  5,542,099  5,559,765  17,666  0.3%    9,934,119 
                             Other sales  44,694  53,899  9,205  20.6%    96,306 
                             Other services  493,718  462,444  (31,274) (6.3%)   826,289 
             Other operating income  479,080  373,781  (105,299) (22.0%)   667,867 
           
Revenues  6,559,591  6,449,888  (109,703) (1.7%)   11,524,582 
           
             Power purchased  (1,624,239) (1,559,449) 64,790  4.0%    (2,786,404)
             Cost of fuel consumed  (847,411) (580,238) 267,173  31.5%    (1,036,761)
             Transportation expenses  (294,860) (277,037) 17,823  6.0%    (495,006)
             Other variable procurements and services  (776,441) (789,127) (12,686) (1.6%)   (1,410,003)
           
Procurements and Services  (3,542,952) (3,205,851) 337,101  9.5%    (5,728,176)
           
Contribution Margin  3,016,640  3,244,037  227,397  7.5%    5,796,406 
           
             Work on non-current assets  32,600  33,731  1,131  3.5%    60,269 
             Employee expenses  (322,628) (370,402) (47,774) (14.8%)   (661,831)
             Other fixed operating expenses  (445,250) (462,432) (17,182) (3.9%)   (826,267)
           
Gross Operating Income (EBITDA) 2,281,361  2,444,934  163,573  7.2%    4,368,578 
           
             Depreciation and amortization  (417,710) (520,297) (102,587) (24.6%)   (929,661)
           
Operating Income  1,863,651  1,924,636  60,985  3.3%    3,438,917 
           
Net Financial Income  (419,330) (309,118) 110,212  26.3%    (552,329)
           
             Financial income  181,753  159,670  (22,083) (12.1%)   285,297 
             Financial expenses  (515,108) (482,473) 32,635  6.3%    (862,076)
             Income (Loss) for indexed assets and liabilities  (62,378) 21,781  84,159  134.9%    38,919 
             Foreign currency exchange differences, net  (23,633) (8,235) 15,398  65.2%    (14,715)
                             Gains  74,524  77,957  3,433  4.6%    139,292 
                             Losses  (98,157) (80,481) 17,676  18.0%    (143,803)
                             Effect of Derivatives in Exchange             
                             Gains (Losses) 3,944  (5,711) (9,655) -    (10,203)
Net Income from Related Comp. Cons. By the Prop.             
Eq. Method  3,261  2,236  (1,025) (31.4%)   3,995 
Net Income from other investments  36  138  102  -    246 
Net Income from sales of assets  2,503  53,311  50,808  -    95,256 
           
Net Income Before Taxes  1,450,085  1,671,065  220,980  15.2%    2,985,839 
           
             Income Tax  (415,903) (359,738) 56,165  13.5%    (642,775)
Continued Operations Result  1,034,182  1,311,328  277,146  26.8%    2,343,064 
             Gain (Loss) from discontinued operations, Net             
             from taxes  -  -  -  -    - 
Dicontinued Operations Result  1,034,182  1,311,328  277,146  26.8%    2,343,064 
           
NET INCOME  1,034,182  1,311,328  277,146  26.8%    2,343,064 
           
             Net Income Attributable to Owners of the  507,590  660,231  152,641  30.1%    1,179,693 
             Company             
           
 
             Net Income Attributable to Minority Interest  526,592  651,097  124,505  23.6%    1,163,371 
             
           
 
 
           
   Ch$ /share    US$ / ADR 
           
  2008  2009  Var 08-09  Chg %    2009 
           
Earning per share  15.5  20.2  4.7  30.1%    1.8 
           

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PRESS RELEASE
Year Ended 2009 
 

OPERATING INCOME

Operating Income for the period ending December 31, 2009 increased by Ch$60,656 million, from Ch$1,863,651 million to Ch$ 1,924,636 million as of December 2009, representing an increase of 3.3% . Likewise, the EBITDA increased by Ch$163,573 million or 7.2%, amounting to Ch$2,444,934 million; the above is mainly due to good operating policies under a complex economic scenario.

Operating Revenues and costs, broken down by business line for the years ending December 31st, 2008 and 2009 are:

Table 2                             
 
Operating Income 
by Businesses 		   Generation and Transmission    Distribution 
  Million Ch$    Chg%   Thousand US$    Million Ch$    Chg%   Thousand US$ 
                       
  2008  2009        2009    2008  2009        2009 
 
Operating Revenues    2,833,397  2,708,358    -4.4%    4,839,260    4,051,041  4,218,450    4.1%    7,537,475 
Operating Costs    (1,789,663) (1,515,949)   -15.3%    (2,708,680)   (3,227,459) (3,457,033)   7.1%    (6,176,984)
 
Operating Income    1,043,734  1,192,408    14.2%    2,130,580    823,582  761,417    -7.5%    1,360,491 
 
 
 
Operating Income 
by Businesses 		   Eliminations and Others    Consolidated 
  Million Ch$    Chg%   Thousand US$    Million Ch$    Chg%   Thousand US$ 
                       
  2008  2009        2009    2008  2009        2009 
 
Operating Revenues    (324,847)  (476,919)   46.8%    (852,153)   6,559,591  6,449,888    -1.7%    11,524,582 
Operating Costs    321,181  447,730    39.4%    799,999    (4,695,941) (4,525,252)   -3.6%    (8,085,665)
 
Operating Income    (3,665) (29,189)   696.4%    (52,154)   1,863,651  1,924,636    3.3%    3,438,917 
 

Generation and Transmission Businesses increased its operating income by Ch$148,674 million, equivalent to 14.2%, and totaling Ch$1,192,408 million. Physical sales increased 3.4% amounting to 66,728 GWh as of December 2009 (64,551 GWh, in December 2008).

Operating income for Generation and Transmission business line, by country in the following table:

Table 3 
 
Generation & 
Transmission 		       Chile        Argentina            Brazil     
  Million Ch$    Chg%    Thousand US$    Million Ch$    Chg%    Thousand US$    Million Ch$    Chg%    Thousand US$ 
                                             
  2008    2009        2009    2008    2009        2009    2008    2009        2009 
 
Operating Revenues    1,609,158    1,373,231    -14.7%    2,453,672    291,376    303,112    4.0%    541,597    322,896    318,322    -1.4%    568,774 
% of consolidated    57%    51%        51%    10%    11%        11%    11%    12%        12% 
 
Operating Costs    (1,041,422)   (733,191)   -29.6%    (1,310,056)   (248,526)   (255,376)   2.8%    (456,302)   (159,277)   (140,550)   -11.8%    (251,134)
% of consolidated    58%    48%        48%    14%    17%        17%    9%    9%        9% 
 
 
 
Operating Income    567,737    640,040    12.7%    1,143,616    42,851    47,737    11.4%    85,295    163,618    177,772    8.7%    317,640 
 
 
 
Generation & 
Transmission 		   Peru    Colombia    Consolidated 
  Million Ch$    Chg%    Thousand US$    Million Ch$    Chg%    Thousand US$    Million Ch$    Chg%    Thousand US$ 
                                             
  2008    2009        2009    2008    2009        2009    2008    2009        2009 
 
Operating Revenues    208,497    213,625    2.5%    381,702    401,470    500,964    24.8%    895,117    2,833,397    2,708,358    -4.4%    4,839,260 
% of consolidated    7%    8%        8%    14%    18%        18%                 
 
Operating Costs    (156,551)   (137,576)   -12.1%    (245,820)   (184,652)   (250,153)   35.5%    (446,970)   (1,789,663)   (1,515,949)   -15.3%    (2,708,680)
% of consolidated    9%    9%        9%    10%    17%        17%                 
 
 
 
Operating Income    51,946    76,049    46.4%    135,883    216,818    250,811    15.7%    448,147    1,043,734    1,192,408    14.2%    2,130,580 
 

Pg. 14

PRESS RELEASE
Year Ended 2009 
 

Distribution business decreased its operating income by Ch$62,165 million, equivalent to 7.5% and totaling Ch$761,417 million.

Physical sales amounted to 63,417 GWh, representing an increase of 612 GWh, equivalent to 1.0% variation. Our customers increased by 375 thousand, amounting 12,792 thousand customer base.

Operating income for Distribution line of business, detailed by country, as follows:

Table 4                                                 
 
Distribution        Chile        Argentina            Brazil     
  Million Ch$    Chg%    Thousand US$    Million Ch$    Chg%    Thousand US$    Million Ch$    Chg%    Thousand US$ 
                                             
  2008    2009        2009    2008    2009        2009    2008    2009        2009 
 
Operating Revenues    1,078,280    1,084,346    0.6%    1,937,497    333,266    324,518    -2.6%    579,844    1,724,688    1,767,754    2.5%    3,158,601 
% of consolidated    27%    26%        26%    8%    8%        8%    43%    42%        42% 
 
Operating Costs    (864,657)   (955,314)   10.5%    (1,706,944)   (287,639)   (292,642)   1.7%    (522,889)   (1,416,280)   (1,429,554)   0.9%    (2,554,309)
% of consolidated    27%    28%        28%    9%    8%        8%    44%    41%        41% 
 
 
 
Operating Income    213,623    129,032    -39.6%    230,553    45,627    31,876    -30.1%    56,955    308,408    338,200    9.7%    604,292 
 
 
 
Distribution    Peru    Colombia    Consolidated 
  Million Ch$    Chg%    Thousand US$    Million Ch$    Chg%    Thousand US$    Million Ch$    Chg%    Thousand US$ 
                                             
  2008    2009        2009    2008    2009        2009    2008    2009        2009 
 
Operating Revenues    253,652    301,472    18.9%    538,667    661,154    740,360    12.0%    1,322,866    4,051,041    4,218,450    4.1%    7,537,475 
% of consolidated    6%    7%        7%    16%    18%        18%    100%    100%        100% 
 
Operating Costs    (200,708)   (239,047)   19.1%    (427,127)   (458,174)   (540,475)   18.0%    (965,715)   (3,227,459)   (3,457,033)   7.1%    (6,176,984)
% of consolidated    6%    7%        7%    14%    16%        16%    100%    100%        100% 
 
 
 
Operating Income    52,944    62,425    17.9%    111,540    202,980    199,885    -1.5%    357,151    823,582    761,417    -7.5%    1,360,491 
 

NET FINANCIAL INCOME

The company’s net financial income as of December 31st, 2009 was negative Ch$309,118 million, representing a 26.3% improvement over the last year’s figures. This variation is mainly explained by a higher Income for Readjustment items which increased Ch$84,159 million due to changes on the Inflation Index Unit – UF (Unidades de Fomento) and its impact on Chile’s UF denominated debt. During year 2009 the UF decreased 0.3% compared to an increase of 9.0% experienced during prior year. Additionally, net interest expenses decreased Ch$10,553 million, primarily due a lower average debt and lower interest rates during the period.

During the year 2009, variations in exchange rates had a negative effect in results, mainly explained by the Chilean peso appreciation relative to foreign currencies of the countries in which Enersis operates Foreign currency exchange differences improved in Ch$15,398 million from 2008’s figure.

TAXES

Income Tax decreased Ch$56,165 million. The latter is mostly explained by decreases in: Enersis Ch$60,196 million, Coelce Ch$21,477 million, Pehuenche Ch$12,538 million and San Isidro Ch$6,019. This effect was partially offset by higher income taxes in Gas Atacama Ch$16,507 million, Emgesa Ch$12,338 million, Edegel Ch$6,997 million, Cachoeira Dourada Ch$4,774 million and Pangue Ch$4,114 million.

Pg. 15

PRESS RELEASE
Year Ended 2009 
 

CONSOLIDATED BALANCE SHEET ANALYSIS

ASSETS UNDER IFRS

Table 5             
           
ASSETS    Million Ch$      Thousand US$ 
     
  2008  2009  Var 08-09  Chg %    2009 
           
 
CURRENT ASSETS             
Cash and cash equivalents  1,318,062  1,134,901  (183,161) (13.9%)   2,238,022 
Financial assets at fair value with changes             
through net income  -  1,493  1,493  0.0%    2,945 
Available-for-sale financial assets  -  -  -  -    - 
Other financial assets  -  43  43  -    84 
Trade accounts receivable and other             
receivables, net  1,313,067  1,138,647  (174,420) (13.3%)   2,245,408 
Accounts receivable from related companies  24,747  19,014  (5,732) (23.2%)   37,496 
Inventories  96,975  56,319  (40,656) (41.9%)   111,061 
Hedging instruments  -  -  -  -    - 
Prepayments  8,894  11,559  2,665  30.0%    22,795 
Current tax receivable  152,700  112,176  (40,525) (26.5%)   221,211 
Other assets  28,276  26,942  (1,333) (4.7%)   53,130 
Non-current assets (or disposal groups)            
classified as held for sale  -  70,361  70,361  -    138,751 
           
Total currrent assets  2,942,721  2,571,456  (371,265) (12.6%)   5,070,904 
           
 
OTHER ASSETS             
Available-for-sale financial assets  22,495  2,513  (19,982) (88.8%)   4,955 
Other financial assets  1,746  25,746  24,000  -    50,771 
Trade accounts receivable and other             
receivables, net  319,284  194,977  (124,306) (38.9%)   384,495 
Accounts receivable from related companies  641  -  (641) (100.0%)   - 
Investments in associates accounted for             
using the equity method  37,834  21,281  (16,552) (43.7%)   41,967 
Intangibles assets, net  2,626,894  2,947,474  320,580  12.2%    5,812,412 
Property, plant and equipment, net  7,215,792  6,864,071  (351,721) (4.9%)   13,535,932 
Investment properties  26,369  31,232  4,863  18.4%    61,589 
Deferred tax assets  511,301  454,897  (56,404) (11.0%)   897,055 
Hedging instruments  2,487  2,238  (249) (10.0%)   4,413 
Prepayments  1,203  834  (368) (30.6%)   1,645 
Other assets  72,410  93,421  21,011  29.0%    184,226 
           
Total other assets  10,838,455  10,638,685  (199,771) (1.8%)   20,979,461 
           
 
           
TOTAL ASSETS  13,781,177  13,210,140  (571,037) (4.1%)   26,050,365 
           

Total Assets decreased Ch$571,037 million, and mainly due to:

• Ch$371,265 million decrease in Current Assets, equal to 12.6%, as a result of:

• Decrease in Trade accounts receivable and other receivables for Ch$174,420 million, primarily due to a reduction in trade account receivable in Codensa Ch$94,889 million, CAM Ch$32,309 million reclassified as held for sale, Edegel Ch$ 29,440 million, Edesur Ch$ 21,144 million, Gas Atacama Ch$19,486 million, Chilectra Ch$19,350 million, Costanera Ch$6,274 million, Edelnor Ch$5,828 million and Pehuenche Ch$5,566 million. The former negative changes were partially compensated by increases in El Chocón for Ch$26,657 million and Ampla for Ch$23,517 million.

Pg. 16

PRESS RELEASE
Year Ended 2009 
 

• Decrease in Inventories by Ch$40,656 million, due to the decrease of CAM by Ch$24,600 million, which were transferred to assets held for sale, in Endesa Chile by Ch$8,962 million, Codensa Ch$5,135 million and Edelnor Ch$2,437 million.

• Decrease in Current tax receivable by Ch$40,525 million, mainly in Coelce Ch$12,401 million, Edesur Ch$8,405 million, Endesa Chile for Ch$7,998 million, Ampla in Ch$6,622 million and CAM in Ch$3,703 million.

• Ch$183,161 million decrease in cash and cash equivalent, primarily explained by decreases in times deposits in Endesa Chile for Ch$305,403 million used to pay debt and dividends and Enersis for Ch$89,200 million. This decrease in cash and cash equivalent was partially offset by increases in time deposits in Codensa for Ch$130,177 million, Cien for Ch$47,030 million, Emgesa for Ch$27,013 million and CGTF for Ch$18,367 million.

The above is partially offset by the increase in Non-current assets (or disposal groups) classified as held for sale by Ch$70,361 million (CAM).

• Decrease in Non-Current Assets in Ch$199,771 million equal to 1.8%, mainly due to:

• Decrease in Property, plants and equipment, by Ch$351,721 million as consequence of Ch$396,451 million in depreciation and impairment loss of the period and conversion effect to Chilean pesos from subsidiaries with a functional currency different to the Chilean peso, by approximately Ch$553,883 million, partially offset by additions in the period by Ch$614,264 million.

• Decrease in Trade accounts receivable and other receivables, net by Ch$124,306 million mainly due to the transfer to the short term of the Atacama Finance accounts receivables for Ch$54,801 million, in Codensa for Ch$59,903 million due to the sale of “Codensa Hogar” credit portfolio and the decrease of Foninvemen by Ch$29,850 million due to the conversion effect.

• Decrease in Deferred tax assets by Ch$56,404 million mainly due to the decrease of assets generated for deferred taxes derived from fiscal losses.

• Decrease in Available-for-sale financial assets in Ch$19,982 million due to the sale of EEB shares.

The above is partially offset by:

• Increase in Intangible Assets, net by Ch$ 320,580 million due to the increases in goodwill for Ch$140,068 million and the increase in concessions intangibles assets for Ch$173,493 million.

• Increase in other financial assets by Ch$24,000 million due to deposits in guaranty hold by Enersis as a backup of swaps.

• Increase in other assets by Ch$21,011 million due to more guaranties given in Ampla and Coelce in Brazil.

Pg. 17

PRESS RELEASE
Year Ended 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. Instead, 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. 18

PRESS RELEASE
Year Ended 2009 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY UNDER IFRS

Table 6             
           
LIABILITIES AND SHAREHOLDERS' EQUITY    Million Ch$      Thousand US$ 
     
  2008  2009  Var 08-09  Chg %    2009 
           
CURRENT LIABILITIES             
Interest-bearing loans  1,272,965  721,511  (551,454) (43.3%)   1,422,819 
Other financial liabilities  -  697  697  -    1,374 
Trade accounts payable and other payables  949,309  976,506  27,198  2.9%    1,925,668 
Accounts payable to related companies  116,022  111,956  (4,066) (3.5%)   220,777 
Provisions  109,532  100,024  (9,507) (8.7%)   197,248 
Current tax payable  201,275  185,286  (15,990) (7.9%)   365,383 
Other liabilities  32,081  29,880  (2,201) (6.9%)   58,923 
Deferred revenues  12,180  5,520  (6,661) (54.7%)   10,885 
Post-employment benefit obligations  5,147  4,915  (232) (4.5%)   9,693 
Hedging instruments  4,269  8,442  4,173  97.8%    16,647 
Liabilities (or disposal groups) classified as held for  -  50,650  50,650  -    99,882 
sale             
           
Total current liabilities  2,702,780  2,195,388  (507,393) (18.8%)   4,329,299 
           
 
NON-CURRENT LIABILITIES             
Interest-bearing loans  3,825,346  3,323,906  (501,440) (13.1%)   6,554,735 
Other financial liabilities  -  -  -  -    - 
Trade accounts payable and other payables  49,134  58,728  9,594  19.5%    115,810 
Accounts payable to related companies  8,978  3,557  (5,421) (60.4%)   7,014 
Provisions  212,960  250,287  37,327  0.0%    493,565 
Deferred tax liabilities  635,013  573,049  (61,964) (0)   1,130,052 
Other liabilities  33,824  35,050  1,226  3.6%    69,118 
Deferred revenues  4,420  3,552  (867) (19.6%)   7,005 
Post-employment benefit obligations  175,537  182,689  7,152  4.1%    360,262 
Hedging instruments  104,053  206,931  102,878  98.9%    408,068 
           
Total long-term liabilities  5,049,265  4,637,749  (411,516) (8.2%)   9,145,630 
           
 
SHAREHOLDERS´ EQUITY             
Issued share capital  2,983,642  2,983,642  -  0.0%    5,883,736 
Reserves  (1,403,037) (1,481,430) (78,393) 5.6%    (2,921,376)
Retained earnings  1,003,120  1,356,036  352,916  35.2%    2,674,099 
Net income for the period  507,590  660,231  152,641  30.1%    1,301,974 
       Total shareholders' equity attributable to             
       the Parent's company  3,091,315  3,518,480  427,165  13.8%    6,938,433 
       Minority Interest 
 2,937,816  2,858,524  (79,292) (2.7%)   5,637,003 
           
Total shareholders' equity  6,029,131  6,377,004  347,872  5.8%    12,575,436 
           
 
           
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  13,781,176  13,210,140  (571,036) (4.1%)   26,050,365 
           

Pg. 19

PRESS RELEASE
Year Ended 2009 
 

The company’s Total Liabilities decreased by Ch$571,036 million from the period ended on December 2008, largely due to the Ch$347,872 million increase in Shareholders’ Equity and the decrease in current plus non-current liabilitites in Ch$918,909 million. The detail is explained as follows:

• Decrease in Current Liabilities of Ch$507,393 million, a 18.8%, due to:

• Loans that accrue interest declining by Ch$551,454 million primarily in Endesa Chile for Ch$280,101 million, for the payment of bonds and the effect of a lower exchange rate and the decrease in the value of the UF, in Enersis for Ch$130,940 million for the payment of loans, in Emgesa for Ch$91,389 million, in Edegel for Ch$38,139 million, in Edelnor for Ch$15,325 million, Chilectra Ch$12,319 million and Edesur Ch$5,081 million; partially compensated by the increase in Gas Atacama for Ch$34,637 million for the transfer from long term debt, in Endesa Brazil Ch$6,799 million and in Codensa Ch$5,947 million.

• Decrease in Current tax payable for Ch$15,990 million which mainly corresponds to a lower Value Added Tax (“IVA”).

• Decrease in current provisions in Ch$9,507 million due to lower liabilities as a consequence of lower energy purchases provisions (Endesa Chile).

Partially offset by:

• Increase in trade accounts payable and other payables in Ch$27,198 million, primarily due to the increases in energy suppliers and dividends payable to third parties, partially compensated by a decrease in accounts payable to services suppliers.

• Non Current Liabilities decreased by Ch$411,516 million, equal to an 8.2%, mainly to:

• Decrease in Loans that accrue interest in Ch$501,440 million primarily in Endesa Chile for Ch$310,440 million, due to the effect of lower exchange rate and the UF, Codensa for Ch$111,437 million, due to the transfer of bonds to the short term and the conversion effect Enersis for Ch$80,805 million, Gas Atacama for Ch$54,675 million, Edegel for Ch$38,374 million, Costanera for Ch$24,416 million and El Chocón for Ch$7,429 million, partially compensated by the increase in debt at Emgesa for Ch$83,709 million due to loans in local currency, Group Endesa Brazil for Ch$36,986 million, Endesa ECO for Ch$9,524 million and in Edelnor for Ch$5,508 million.

• Decrease of Deferred tax liabilities for Ch$61,964 million as a consequence of the conversion effect in foreign subsidiaries for Ch$41,220 million and lower deferred taxes in Endesa Chile Ch$15,273 million, Edelnor Ch$13,711 million, Edesur Ch$ 5,149 million, San Isidro Ch$4,057 million and in Celta for Ch$2,936 million, partially compensated by increases in Edegel for Ch$9,192 millions, Codensa for Ch$6,024 million, Gas Atacama for Ch$5,703 million and Chilectra for Ch$2,793 million.

The above is partially offset by:

• Increase in Hedging instruments for Ch$102,878 million, basically due to the increase in the Mark to Market of derivatives in Enersis for Ch$105,988 million.

• Increase in provisions for Ch$37,327 million principally in Brazil due to higher legal claims and the conversion effect.

Net Shareholders’ equity increased by Ch$347,873 million with respect to December 2008. The Total shareholders' equity attributable to the Parent's company increased in Ch$427,165 million which is explained mainly by the Ch$660,231 million period result, the increase in coverage derivatives reserves for Ch$92,118 million, diminish in the reserves of conversion over investments and capital gains purchased for Ch$80,352 million, decrease derived from the register of the 2008 definitive dividend complement for Ch$29,773 million and the register of minimum dividend of the year 2009 for Ch$198,069 million.

Pg. 20

PRESS RELEASE
Year Ended 2009 
 

The minorities participation decreased in Ch$79,292 million, as a consequence of the conversion net effects, minimum dividend, coverage derivatives reserves and minorities net income.

DEBT MATURITY WITH THIRD PARTIES, MILLION CH$

Table 7                                 
 
                                TOTAL 
     
Million Ch$    2010    2011    2012    2013    2014    2015    Balance     
 
     Chile 
   181,056    111,484    21,437    213,095    378,239    2,591    880,153    1,788,056 
 
Enersis    1,960    2,072    2,191    2,317    268,811    2,591    219,552    499,494 
Chilectra    113    -    -    -    -    -    -    113 
Other (*)   875    -    -    -    -    -    -    875 
Endesa Chile (**)   178,109    109,411    19,246    210,778    109,428    -    660,601    1,287,574 
 
     Argentina    62,211    68,739    34,516    12,930    14,524    -    -    192,920 
 
Edesur    10,581    17,240    14,905    385    249    -    -    43,361 
Costanera    36,456    23,964    13,205    12,545    14,274    -    -    100,444 
Chocon    15,035    27,535    6,405    -    -    -    -    48,975 
Hidroinvest    139    -    -    -    -    -    -    139 
CTM    -    -    -    -    -    -    -    - 
Tesa    -    -    -    -    -    -    -    - 
 
     Peru 
   51,438    63,450    95,282    49,547    48,415    10,460    80,144    398,737 
 
Edelnor    14,886    33,975    29,549    25,259    25,707    10,460    24,641    164,476 
Edegel    36,552    29,475    65,733    24,289    22,709    -    55,503    234,261 
 
     Brazil 
   242,172    255,563    271,882    102,293    60,712    2,447    43,888    978,956 
 
Endesa Brasil    55,497    -    -    -    -    -    -    55,497 
Coelce    42,578    68,047    56,331    46,587    39,443    -    10,136    263,121 
Ampla    78,318    120,747    149,535    48,638    13,689    1,831    13,694    426,451 
Cachoeira    -    -    -    -    -    616    (616)   - 
Cien    60,668    60,624    59,427    -    -    -    -    180,719 
Fortaleza    5,112    6,144    6,590    7,068    7,580    -    20,674    53,168 
 
     Colombia    122,489    109,148    84,027    39,938    97,157    3,223    347,748    803,730 
 
Codensa    82,799    49,613    8,365    39,938    62,016    3,223    113,740    359,693 
Emgesa    39,690    59,535    75,662    -    35,141    -    234,009    444,037 
 
     TOTAL 
   659,366    608,383    507,144    417,803    599,047    18,721    1,351,934    4,162,398 
 
(*) Includes: Endesa Chile, Pangue, Pehuenche, San Isidro, Celta and Túnel El Melón. 

Pg. 21

PRESS RELEASE
Year Ended 2009 
 

DEBT MATURITY WITH THIRD PARTIES, THOUSAND US$

Table 7.1 
                                
 
                                TOTAL 
     
Thousand US$    2010    2011    2012    2013    2014    2015    Balance     
 
     Chile 
   357,042    219,845    42,274    420,223    745,886    5,110    1,735,660    3,526,042 
 
Enersis    3,864    4,086    4,321    4,570    530,094    5,110    432,956    985,002 
Chilectra    222    -    -    -    -    -    -    222 
Other    1,725    -    -    -    -    -    -    1,725 
Endesa Chile (*)   351,231    215,759    37,953    415,653    215,792    -    1,302,704    2,539,093 
 
     Argentina 
   122,680    135,553    68,065    25,498    28,641    -    -    380,437 
 
Edesur    20,866    33,997    29,393    760    492    -    -    85,508 
Costanera    71,890    47,257    26,040    24,738    28,149    -    -    198,075 
Chocon    29,649    54,298    12,632    -    -    -    -    96,579 
Hidroinvest    275    -    -    -    -    -    -    275 
CTM    -    -    -    -    -    -    -    - 
Tesa    -    -    -    -    -    -    -    - 
 
     Peru 
   101,436    125,124    187,896    97,707    95,475    20,627    158,044    786,308 
 
Edelnor    29,355    66,999    58,270    49,810    50,694    20,627    48,592    324,346 
Edegel    72,081    58,124    129,626    47,897    44,782    -    109,452    461,962 
 
     Brazil 
   477,562    503,969    536,151    201,721    119,725    4,825    86,547    1,930,499 
 
Endesa Brasil    109,440    -    -    -    -    -    -    109,440 
Coelce    83,964    134,188    111,084    91,870    77,781    -    19,987    518,875 
Ampla    154,442    238,112    294,882    95,913    26,995    3,611    27,005    840,961 
Cachoeira    -    -    -    -    -    1,214    (1,214)   - 
Cien    119,637    119,551    117,189    -    -    -    -    356,377 
Fortaleza    10,080    12,117    12,995    13,938    14,948    -    40,769    104,847 
 
     Colombia 
   241,548    215,240    165,700    78,758    191,593    6,355    685,759    1,584,953 
 
Codensa    163,279    97,836    16,495    78,758    122,295    6,355    224,294    709,314 
Emgesa    78,269    117,404    149,205    -    69,297    -    461,465    875,640 
 
     TOTAL 
   1,300,269    1,199,731    1,000,086    823,907    1,181,320    36,917    2,666,010    8,208,240 
 
(*) Includes: Endesa Chile, Pangue, Pehuenche, San Isidro, Celta and Túnel El Melón. 

EVOLUTION OF KEY FINANCIAL RATIOS

Table 8 
 
Indicator    Unit    2008    2009   Var 08-09    Chg % 
 
Liquidity    Times    1.09    1.17    0.08    7.3% 
Acid ratio test *    Times    1.05    1.14    0.09    8.6% 
Working capital    million Ch$    239,941    376,068    136,127    56.7% 
Working capital    th. US$    428,723    671,954    243,230    56.7% 
Leverage **    Times    1.29    1.07    (0.22)   (17.1%)
Short-term debt    %    35.0    32.0    (2.94)   (8.6%)
Long-term debt    %    65.0    68.0    2.94    4.6% 
 
* Current assets net of inventories and prepaid expenses 
** Using the ratio = Total debt / (equity + minority interest)

 
Indicator    Unit    2008    2009   Var 08-09    Chg % 
 
Financial Expenses Coverage***    Times    3.80    5.21    1.42    37.6% 
Op.Income / Op.Rev.    %    28.4    29.8    1.43    5.0% 
ROE    %    16.4    18.8    2.34    14.3% 
ROA    %    7.5    9.9    2.42    32.3% 
 
***EBITDA/Financial Costs 

Liquidity index as of December, 2009 was 1.17, an improvement of 0.08 or an equivalent of 7.3% compared to December, 2008. This situation reflects a persistent strong liquidity position, maintaining its bank borrowings and financing its investments with its cash surpluses and having a satisfactory debt maturity pattern.

Leverage ratio was 1.07, a reduction of 0.22 compared to December, 2008, mainly explained by the decrease in Total Liabilities as a consequence of the variations in the UF that affected UF-denominated

Pg. 22

PRESS RELEASE
Year Ended 2009
 

debt and the decrease in the company’s debt stock as a result of the maturity of certain debts which were repaid using internally generated cash flow. Additionally, the improvement in the Leverage ratio is the consequence of the increase in Total Shareholder’s Equity.

Financial Expenses Coverage increased 1.42 times or an equivalent 37.6%, going from 3.80 in December 2008 to 5.21 for the current period. The aforementioned is the result of a significant increase in EBITDA generation and the positive impact in financial expenses as a result of the decrease in UF over UF-denominated debt.

Operating Income over Operating Revenues profitability increased 5.0%, reaching a 29.8% in December, 2009.

The annual ROE of the Parent Company increase from 16.4% to 18.8% in December, 2009. This increase is derived from higher results from the period despite an increase in Parent Company equity.

Annual ROA increased from 7.5% as of December 2008 to 9.9% in December 2009, reflecting the improving in 2009’s results and also a decrease in Total Assets.

Pg. 23

PRESS RELEASE
Year Ended 2009
 

CONSOLIDATED STATEMENTS OF CASH FLOWS ANALYSIS

UNDER IFRS

Table 9 
           
CASH FLOW           Million Ch$      Thousand US$ 
     
  2008  2009  Var 08-09  Chg %         2009 
           
CASH FLOWS PROVIDED BY (USED IN) OPERATIONS             
           
Net income (loss) for the year  1,034,182  1,311,328  277,146  26.8%    2,343,064 
           
Adjustments to Reconcile to Operating Income  831,008  638,507  (192,501) (23.2%)   1,140,876 
Adjustments to Reconcile to Operating Income  -  -  -  -    - 
Financial expenses  577,487  460,691  (116,796) (20.2%)   823,158 
Financial income  (181,753) (159,670) 22,083  12.1%    (285,297)
Dividend income  (36) (138) (102) -    (246)
Income tax  415,903  359,738  (56,165) (13.5%)   642,775 
Share of the (profit) loss of associates accounted for using the equity method,  (3,261) (2,236) 1,025  31.4%    (3,995)
net of cash distributions received             
Other (Increases) decreases to Reconcile to Operating Income  22,669  (19,878) (42,547) (187.7%)   (35,518)
Operating Income  1,865,190  1,949,834  84,644  4.5%    3,483,940 
Non monetary adjustments:        -    - 
Depreciation  330,545  346,588  16,043  4.9%    619,278 
Amortization of intangibles  87,165  107,782  20,617  23.7%    192,584 
(Reversal of) Impairment losses  -  65,927  65,927  -    117,798 
Unrealized foreign currency exchange differences, net  -  -  -  -    - 
Change in the value of Investment Property  -  -  -  -    - 
Non realized Gain (loss) on the fair value of hedging instruments  -  -  -  -    - 
(Gain) loss on sale of non-current assets not held for sale  (1,539) (25,198) (23,659) -    (45,023)
Gain (loss) on the sale of other assets and financial liabilities  -  -  -  -    - 
Participation in (profits) loss of investments  -  -  -  -    - 
Increase in provisions  34,290  104,172  69,882  -    186,133 
Reversal of unused provisions  (29,414) (49,448) (20,034) (68.1%)   (88,354)
Used provisions  (27,282) (38,287) (11,005) (40.3%)   (68,411)
(Increase) decrease in deferred tax Assets  (1,805) (6,786) (4,981) (276.0%)   (12,125)
Increase (decrease) in deferred tax Liabilities  (3,008) (3,092) (84) (2.8%)   (5,524)
Other non-monetary adjustments  8,924  7,679  (1,245) (14.0%)   13,720 
Total Non monetary adjustments:  397,876  509,337  111,461  28.0%    910,077 
Increase (Decrease) in Working Capital in:             
Increase (decrease) in non current assets and Disposal Groups             
available for sale  -  (92,277) (92,277) -    (164,879)
Inventories  8,249  31,683  23,434  -    56,610 
Trade accounts receivable and other receivables, net  (168,320) 112,512  280,832  166.8%    201,036 
Prepayments  (18,692) (4,620) 14,072  75.3%    (8,254)
Other assets  40,485  140,620  100,135  247.3%    251,259 
Trade accounts payable and other payables  (55,137) (218,629) (163,492) -    (390,644)
Deferred revenues  1,493  (4,037) (5,530) -    (7,214)
Accruals  (7,954) (13,316) (5,362) (67.4%)   (23,794)
Taxes Payable  (81,059) (134,097) (53,038) (65.4%)   (239,604)
Post-employment benefit obligations  19,622  10,385  (9,237) (47.1%)   18,557 
Other liabilities  (10,250) (15,480) (5,230) (51.0%)   (27,659)
Increase (Decrease) in Working Capital  (271,561) (187,256) 84,305  31.0%    (334,586)
Cash Flows provided by (used in) Other Operating Activities             
Proceeds from Dividends classified as operational  -  -  -  -    - 
Payments of dividends classified as operating  -  -  -  -    - 
Proceeds from interest received classified as operating  -  -  -  -    - 
Payments of interest classified as operating  -  -  -  -    - 
Proceeds from refunded income tax  3,980  195  (3,785) (95.1%)   348 
Payments of income tax  (83,099) (233,884) (150,785) (181.5%)   (417,901)
Other inflows (outflows) from other operating activities  (1,189) 103  1,292  108.7%    185 
Net cash flows provided by (used in) operating activities  (80,307) (233,586) (153,279) (190.9%)   (417,368)
           
NET CASH FLOW FROM OPERATING ACTIVITIES  1,911,197  2,038,330  127,133  6.7%    3,642,063 
           

Pg. 24

PRESS RELEASE
Year Ended 2009
 

UNDER IFRS

Cont. Table 9 
           
NET CASH FLOW FROM OPERATING ACTIVITIES  1,911,197  2,038,330  127,133  6.7%    3,642,063 
           
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES            - 
           
Proceeds from sales of property, plant and equipment  14,139  7,559  (6,580) (46.5%)   13,507 
Proceeds from sales of intangible assets  -  5,292  5,292  -    9,456 
Proceeds from sales of other financial assets  7,731  190,167  182,436  -    339,788 
Proceeds from the sale of other assets  -  -  -  -    - 
Other cash flows provided by (used in) investing activities  86,576  9,848  (76,728) (88.6%)   17,596 
Proceeds from dividends classified for investing purposes  5,826  2,676  (3,150) (54.1%)   4,781 
Proceeds from interest received classified for investing purposes  11,043  4,346  (6,697) (60.6%)   7,766 
Purchase of property, plant and equipment  (496,751) (526,522) (29,771) (6.0%)   (940,783)
Acquisitions of investment properties  (50) (13) 37  74.9%    (23)
Acquisitions of intangible assets  (284,741) (209,940) 74,801  26.3%    (375,118)
Acquisitions of subsidiaries, net of cash acquired  -  -  -  -    - 
Acquisitions of associates  -  -  -  -    - 
Acquisitions of joint ventures, net of cash acquired  -  (19,912) (19,912) -    (35,579)
Loans to related companies  (27,299) (8,615) 18,684  68.4%    (15,393)
Other investment disbursements  (23,576) (322,154) (298,578) -    (575,620)
           
NET CASH FLOW FROM INVESTING ACTIVITIES  (707,101) (867,267) (160,166) (22.7%)   (1,549,621)
           
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES            - 
           
Loans obtained  1,091,907  578,126  (513,781) (47.1%)   1,032,988 
Proceeds from issuance of other financial liabilities  332,344  248,314  (84,030) (25.3%)   443,685 
Proceeds from loans from related companies  412  -  (412) (100.0%)   - 
Revenue from other financing sources  470  8  (462) (98.2%)   15 
Payments of loans  (893,390) (807,136) 86,254  9.7%    (1,442,181)
Repayment of other financial liabilities  (329,637) (476,216) (146,579) (44.5%)   (850,896)
Repayments of liabilities for financial leases  (6,996) (3,172) 3,824  54.7%    (5,667)
Payments of loans to related parties  (14,160) (16,987) (2,827) (20.0%)   (30,351)
Payments of interest classified for financing purposes  (230,037) (252,737) (22,700) (9.9%)   (451,587)
Dividends paid to minority interest  (311,148) (356,030) (44,882) (14.4%)   (636,150)
Dividends paid to shareholders of the company  (149,062) (222,577) (73,515) (49.3%)   (397,698)
Other cash flows provided by (used in) financing activities  -  -  -  -    - 
           
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES  (509,297) (1,308,406) (799,109) (156.9%)   (2,337,844)
           
Net Increase (Decrease) in Cash and Cash Equivalents  694,799  (137,343) (832,142) (119.8%)   (245,403)
           
Effects of foreign exchange rate variations on cash and cash equivalents  34,386  (45,818) (80,204) -    (81,867)
           
Effect of changes in scope of consolidation on cash and cash equivalents  -  -  -  -    - 
           
Beginning balance of cash and cash equivalents, statement of cash flows  588,877  1,318,062  729,185  123.8%    2,355,097 
           
Ending Balance of Cash and Cash Equivalents, Statement of Cash Flows  1,318,062  1,134,901  (183,161) (13.9%)   2,027,827 
           

The company generated a negative cash flow of Ch$137,343 million for the period, which can be broken down as follows:

Operating activities generated a positive net cash flow of Ch$2,038,330 million that represents an increase of 6.7% regarding last year’s. This cash flow is composed primarily with net income of the period for Ch$1,311,328 million, adjustments to reconcile to operating income for Ch$638,507 million, non monetary adjustments for Ch$ 509,337 million mainly for fixed asset amortization and depreciation for Ch$520,297 million, provisions for Ch$104,172 million, partially compensated by the reversal of provisions for Ch$87,736 million.

In addition, variations in working capital show a Ch$187,256 million decrease for and the utilization of flows in other operating activities for Ch$233,586 million, being tax paid the principal amount for Ch$233,884.

Investment activities generated a net negative cash flow of Ch$867,267 million, which compared whith the same period of the preceding year represents a decrease of 22.7% or Ch$160,166 million. This flow corresponds primarily to the incorporation of fixed assets for Ch$526,522 million, intangibles purchases

Pg. 25

PRESS RELEASE
Year Ended 2009
 

for Ch$209,940 million mainly attributable to Edegel and Edelnor, investments in related companies for Ch$310,384 million (Edegel, Edelnor and Cundinamarca), other disposal in investments for Ch$31,682 million. The former is partially compensated by proceeds for sale of financial assets by Ch$190,167 million (Codensa Hogar and Empresa Eléctrica de Bogotá) and fixed assets and intangible sales for Ch$12,852 million.

Financing activities originated a negative cash flow of Ch$ 1,275,788 million, due to repayments of loans for Ch$ 807,136 million, dividends paid for Ch$578,607 million, interests paid for Ch$220,119 million and other financial payments for Ch$476,216 million. The aforementioned was partially compensated for Loans obtained for Ch$578,126 million and Proceeds from issuance of bonds for Ch$248,314 million.

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

Table 10                                     
 
    Interest Received    Dividends Received       Others 
    Millions Ch$    Thousand US$    Millions Ch$    Thousand US$    Millions Ch$    Thousand US$ 
             
    2008    2009    2009    2008    2009    2009    2008     2009    2009 
 
Argentina    1,072    812    1,452    187    4,719    8,432    -       -    - 
Peru    -    -    -    13,825    24,670    44,080    -       -    - 
Brazil    14,610    6,640    11,864    57,105    175,916    314,324    -       -    - 
Colombia    -    -    -    59,588    54,512    97,401    -    47,914    85,612 
Chile    -    -        -    -        -       -     
 
Total    15,683    7,452    13,316    130,706    259,817    464,238    -    47,914    85,612 
 



 
    Total Cash Received 
    Millions Ch$    Thousand US$ 
     
    2008    2009    2009 
 
Argentina   1,259    5,532    9,884 
Peru   
13,825 
24,670 
44,080 
Brazil   
71,715 
182,556 
326,188 
Colombia   
59,588 
102,426 
183,014 
Chile   
- 
- 
- 
 
Total   
146,388 
315,183 
563,166 
 
Source: Internal Financial Report     

Pg. 26

PRESS RELEASE
Year Ended 2009
 

CAPEX AND DEPRECIATION

Table 11                   
 
  Payments for Additions of Fixed assets      Depreciation 
               
  Million Ch$    Thousand US$    Million Ch$    Thousand US$ 
Million Ch$  2008  2009           2009     2008   2009    2009 
 
Endesa Chile  254,225  314,067    561,171    182,631  192,773    344,444 
Cachoeira  1,938  2,922    5,221    6,903  7,218    12,898 
Endesa Fortaleza  1,357  3,653    6,527    7,735  7,646    13,661 
Cien  1,263  -    -    17,033  18,060    32,269 
Chilectra S.A.  61,805  43,846    78,343    17,284  20,276    36,229 
Edesur S.A.  71,127  46,997    83,974    16,430  16,006    28,600 
Edelnor S.A.  34,569  37,708    67,377    18,667  19,696    35,192 
Ampla (*) 127,334  107,203    191,548    46,053  55,496    99,160 
Coelce (*) 148,251  93,291    166,691    34,271  40,991    73,243 
Codensa S.A.  58,166  68,834    122,991    51,745  55,084    98,424 
Cam Ltda.  2,931  3,004    5,368    2,029  1,742    3,113 
Inmobiliaria Manso de Velasco Ltda.  2,197  705    1,259    253  253    452 
Synapsis Soluciones y Servicios Ltda.  5,491  3,906    6,979    3,126  2,851    5,095 
Holding Enersis y sociedades de Inversión  1,681  880    (1,147)   1,090  1,169    2,088 
 
Total  772,335  727,015    1,296,303    405,248  439,260    784,867 
 
 
(*) Includes concessions intangible assets.                   

THE PRINCIPAL RISKS ASSOCIATED TO THE ACTIVITIES OF THE ENERSIS GROUP

Commercial and Regulatory Risk

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

The Group’s distribution activity is subject to a broad range of rules regarding tariffs and other issues that govern their activities in each of the countries where it operates and which could modify distribution subsidiaries operating results.

The Group’s generation activity requires environmental impact studies, acquisition of licenses, permits and other mandatory approvals as well as to be in compliance with all the requirements provided for in such licenses, permits and standards.

The Group’s generation activity is subject to existing hydrological and atmospheric conditions in the broad geographic zones in which the Group’s hydroelectric generating plants are located. Commercial policies have been planned in order to moderate the possible impact of changes in these variables.

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.

Consistent with current interest rate hedging policy, the portion of fixed and/or hedged debt rate to the total gross debt was 36.0% as of December 2009 on a consolidated basis.

Pg. 27

PRESS RELEASE
Year Ended 2009
 

Depending on the Group’s forecasts and debt structure objectives, hedging transactions take place through contracted derivatives that mitigate these risks.

Exchange Rate Risk

The exchange rate risk is 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 and Cash flows from subsidiary companies to headquarters in Chile are exposed to exchange rate fluctuations.

In order to mitigate exchange rate risks, Enersis’ exchange rate hedging policy is based on cash flows and it strives to maintain a balance between the flows indexed to 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.

Commodities Risk

Enersis is exposed to the price fluctuation risk on some commodities, basically of fuel purchases for the electricity generation and also of energy transactions in the local markets.

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 Risk

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.

As of December, 2009, the Enersis Group held liquidity in the amount of Ch$ 1,134,900 million in cash and cash equivalent and Ch$235,550 million in available credit lines. As of December, 2008, the Enersis Group held liquidity in the amount of Ch$ 1,318,062 million in cash and cash equivalent and Ch$127,290 million in available credit lines.

Credit Risk

Credit risk in accounts receivable, originating from trading activities, is historically very limited given that the short term collection conditions to customer doesn’t allow 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
Year Ended 2009
 

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 and 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 and the exchange rates of the different currencies involved in the calculation.

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 US$ 50 million dollars (or its equivalent in other currencies), and with a missed payment also in excess of US$ 50 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 US$ 50 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 US$ 30 million dollars, could potentially give rise to a cross default of Enersis and Endesa Chile Yankee bonds.

There are no clauses in the credit agreements by which changes in the corporate or debt classification of these companies from risk classification agencies could trigger prepayments. Nevertheless, a modification in the Standard & Poor’s (S&P) debt risk classification in foreign currency could trigger a change in the margin applicable to determine the interest rate, in the credit loans issued in 2004 and 2006.

Pg. 29

PRESS RELEASE
Year Ended 2009
 

ARGENTINA

GENERATION

ENDESA COSTANERA

Operating income amounted to Ch$ 4,380 million, 76% below the level of the same period of 2008. The above is explained by lower physical sales, an increase in Procurements and Services costs due to higher fuel consumption and negative conversion effect from local currency to Chilean pesos, which reduced 7.9% the year 2009 results compared to last year’s figure.

Table 12             
 
Endesa Costanera  Million Ch$    Thousand US$ 
     
  2008  2009  Var 08-09  Chg %    2009 
 
Total Revenues  240,087  231,422  (8,666) (3.6%)   413,501 
Procurements and Services  (188,737) (190,815) (2,078) (1.1%)   (340,946)
Contribution Margin  51,350  40,606  (10,744) (20.9%)   72,555 
Other Costs  (15,690) (17,368) (1,678) (10.7%)   (31,032)
           
Gross Operating Income (EBITDA) 35,661  23,239  (12,422) (34.8%)   41,522 
           
Depreciation and Amortization  (17,236) (18,859) (1,623) (9.4%)   (33,696)
           
Operating Income  18,425  4,380  (14,045) (76.2%)   7,826 
           
Figures may differ from those accounted under Argentine GAAP.         

Table 16

 
Endesa Costanera  2008  2009  Var 08-09  Chg % 
 
GWh Produced  8,540  8,172  (368) (4.3%)
GWh Sold  8,543  8,284  (260) (3.0%)
Market Share  8.1%  7.9%  (0.1%) - 
 

EL CHOCÓN

Showed higher reservoir water levels accumulated in the early months of the year, thus providing greater hydroelectric generation. With this, El Chocón improved its operating income to Ch$ 38,700 million as of December 2009, with physical sales increasing by 61.4% compared to the same period of 2008. Negative conversion effect from local currency to Chilean pesos reduced 7.9% the year 2009 results compared to last year’s figure.

Table 13 
           
El Chocón    Million Ch$        Thousand US$ 
     
  2008  2009  Var 08-09  Chg %    2009 
           
Total Revenues       44,141             65,298  21,158  47.9%    116,674 
Procurements and Services  (17,503) (17,724) (221) (1.3%)   (31,669)
Contribution Margin       26,638             47,574  20,936  78.6%    85,005 
Other Costs         (4,158)              (5,191) (1,033) (24.8%)   (9,275)
           
Gross Operating Income (EBITDA)      22,480             42,383  19,904  88.5%    75,730 
           
Depreciation and Amortization         (3,449)              (3,683) (234) (6.8%)   (6,581)
           
Operating Income       19,031             38,700  19,670  103.4%    69,149 
           
Figures may differ from those accounted under Argentine GAAP.         

Pg. 30

PRESS RELEASE
Year Ended 2009
 

Table 14

 
El Chocón  2008  2009  Var 08-09  Chg % 
         
GWh Produced  1,940  3,783  1,843  95.0% 
GWh Sold  2,554  4,122  1,567  61.4% 
Market Share  2.4%  3.9%  1.5%  - 
         

DISTRIBUTION

EDESUR

Operating income decreased mainly due to decrease in physical sales and higher employee expenses and other fixed operating expenses, situation related with higher inflation costs, partially compensated by payments from regulator through the MMC and PUREE. Negative conversion effect from local currency to Chilean pesos reduced 7.9% the year 2009 results compared to last year’s figure.

Table 15             
     
Edesur  Million Ch$    Thousand US$ 
     
  2008  2009  Var 08-09  Chg %    2009 
   
Total Revenues  333,266  324,518  (8,749) (2.6%)   579,844 
Procurements and Services  (159,169) (153,917) 5,252  3.3%    (275,016)
Contribution Margin  174,098  170,601  (3,497) (2.0%)   304,828 
Other Costs  (111,437) (122,210) (10,772) (9.7%)   (218,362)
 
Gross Operating Income (EBITDA) 62,660  48,391  (14,269) (22.8%)   86,465 
 
Depreciation and Amortization       (17,033)          (16,516) 517  3.0%                 (29,510)
           
Operating Income  45,627  31,876  (13,751) (30.1%)   56,955 
           
Figures may differ from those accounted under Argentine GAAP.         

Table 16

 
Edesur  2008  2009  Var 08-09  Chg % 
 
Customers (Th) 2,262  2,305  43  1.9% 
GWh Sold  16,160  16,026  (134) (0.8%)
Clients/Employee  873  877  4  0.4% 
Energy Losses %  10.6%  10.5%  (0.2%) (1.6%)
 

Pg. 31

PRESS RELEASE
Year Ended 2009
 

BRAZIL

ENDESA BRASIL

Table 17             
   
Endesa Brasil  Million Ch$    Thousand US$ 
     
  2008     2009  Var 08-09  Chg %    2009 
   
Total Revenues  1,939,140  1,958,614  19,474  1.0%    3,862,383 
Procurements and Services  (1,119,726) (1,057,983) 61,743  (5.5%)   (2,086,341)
Contribution Margin  819,414  900,631  81,217  9.9%    1,776,042 
Other Costs  (238,083) (255,151) (17,068) 7.2%    (503,156)
           
Gross Operating Income (EBITDA) 581,331  645,480  64,149  11.0%    1,272,886 
           
Depreciation and Amortization  (114,465) (131,888) (17,423) 15.2%    (260,084)
   
Operating Income  466,866  513,592  46,726  10.0%    1,012,802 
           
Net Financial Income  (113,816) (59,969) 53,848  (47.3%)   (118,258)
   Financial income  118,860  100,509  (18,351) (15.4%)   198,203 
   Financial expenses  (198,955) (185,208) 13,747  (6.9%)   (365,229)
   Income (Loss) for indexed assets and liabilities  -  -  -  -    - 
   Foreign currency exchange differences, net  (33,722) 24,730  58,452  (173.3%)   48,768 
             Gains  59,906  46,431  (13,475) (22.5%)   91,561 
             Losses  (93,627) (21,700) 71,927  (76.8%)   (42,793)
Net Income from Related Comp. Cons. By the  -  -  -  -    - 
Prop. Eq. Method             
Net Income from Other Investments  -  -  -  -    - 
Net Income from asset sales  401  276  (125) (31.1%)   544 
   
Net Income before Taxes  353,450  453,899  100,449  28.4%    895,088 
           
               Income Tax  (66,187) (106,585) (40,398) 61.0%    (210,185)
Continued Operations Result  287,263  347,314  60,051  20.9%    684,903 
               Gain (Loss) from discontinued operations,  -  -  -  -    - 
               Net from taxes             
Dicontinued Operations Result  287,263  347,314  60,051  20.9%    684,903 
           
NET INCOME  287,263  347,314  60,051  20.9%    684,903 
           
   Net Income Attributable to Owners of the             
   Company  194,650  237,684  43,033  22.1%    468,711 
           
   Net Income Attributable to Minority Interest             
  92,613  109,631  17,018  18.4%    216,192 
           

GENERATION

CACHOEIRA

Operating Income decreased due to lower market sales prices mainly explained by better hydrological conditions in Brazil compared to higher prices in 2008. Negative conversion effect from local currency to Chilean pesos reduced 6.5% the year 2009 results compared to last year’s figure.

Table 18             
   
Cachoeira  Million Ch$    Thousand US$ 
     
  2008  2009  Var 08-09  Chg %    2009 
           
Total Revenues  147,105               88,300  (58,805) (40.0%)                    157,773 
Procurements and Services  (39,270) (23,600) 15,670  39.9%                     (42,168)
Contribution Margin  107,835               64,700  (43,135) (40.0%)                    115,605 
Other Costs  (6,103)              (6,820) (718) (11.8%)                    (12,187)
           
Gross Operating Income (EBITDA) 101,732               57,880  (43,853) (43.1%)                    103,419 
           
Depreciation and Amortization  (6,951)              (7,250) (300) (4.3%)                    (12,955)
           
Operating Income  94,782               50,629  (44,153) (46.6%)   90,464 
           
Figures may differ from those accounted under Brazilian GAAP.         

Pg. 32

PRESS RELEASE
Year Ended 2009
 

Table 19

 
Cachoeira  2008  2009  Var 08-09  Chg % 
 
GWh Produced  3,308  2,820  (488) (14.8%)
GWh Sold  4,403  3,862  (541) (12.3%)
Market Share  1.1%  1.0%  (0.1%) - 
         

FORTALEZA (CGTF)

Operating Income increased mainly due to lower energy purchased costs, as a consequence of lower market prices. Negative conversion effect from local currency to Chilean pesos reduced 6.5% the year 2009 results compared to last year’s figure.

Table 20             
   
Fortaleza  Million Ch$    Thousand US$ 
     
  2008  2009  Var 08-09  Chg %    2009 
           
Total Revenues  110,163  138,595  28,432  25.8%                 247,640 
Procurements and Services  (65,587) (38,643) 26,944  41.1%                   (69,047)
Contribution Margin  44,576  99,952  55,376  124.2%                 178,592 
Other Costs  (8,010) (8,351) (340) (4.2%)                  (14,921)
           
Gross Operating Income (EBITDA) 36,566  91,601  55,035  150.5%                 163,671 
           
Depreciation and Amortization  (8,056) (7,675) 381  4.7%                   (13,714)
           
Operating Income  28,510  83,926  55,416  194.4%                 149,957 
           
Figures may differ from those accounted under Brazilian GAAP.         

Table 21

 
Fortaleza  2008  2009  Var 08-09  Chg % 
 
GWh Produced  71  499  429  604.6% 
GWh Sold  2,690  3,007  317  11.8% 
Market Share  0.7%  0.8%  0.1%  - 
         

TRANSMISSION

CIEN

Operating Income increased mainly due to contracts signed to export energy to Uruguay and Argentina, initiating this activity in February, while in 2008, commercialization activities started on April. The latter was partially affected by negative conversion effect from local currency to Chilean pesos.

Table 22             
   
Cien    Million Ch$        Thousand US$ 
     
  2008  2009  Var 08-09  Chg %    2009 
   
Total Revenues       72,777  97,961  25,185  34.6%                 175,036 
Procurements and Services  (290) (20,025) (19,735) -                   (35,780)
Contribution Margin       72,487  77,936  5,450  7.5%                 139,256 
Other Costs         (9,665) (11,842) (2,177) (22.5%)                  (21,159)
           
Gross Operating Income (EBITDA)      62,821  66,095  3,273  5.2%                 118,097 
           
Depreciation and Amortization  (17,099) (18,102) (1,002) (5.9%)                  (32,344)
           
Operating Income       45,722  47,993  2,271  5.0%    85,753 
           
Figures may differ from those accounted under Brazilian GAAP.         

Pg. 33

PRESS RELEASE
Year Ended 2009
 

DISTRIBUTION

AMPLA

Operating Income increased mainly due to increasing demand and the higher average sales prices and tolls, partially compensated by the increase in the energy purchase costs, higher energy losses and a negative conversion effect due to Real depreciation relative to the Chilean peso.

Tariff Review for the period 2009-2014 was held on March 2009 and the ANEEL set an adjustment of 0.82% to the final tariffs. Additionally, the annual revision designed to protect the company versus uncontrollable costs increases and inflation, set an adjustment of 10.95% in the final tariffs.

Table 23             
           
Ampla  Million Ch$    Thousand US$ 
     
  2008     2009  Var 08-09  Chg %           2009 
           
Total Revenues  964,909  1,001,031           36,122  3.7%    1,788,629 
Procurements and Services  (624,626) (619,675) 4,951  0.8%    (1,107,227)
Contribution Margin  340,283  381,356           41,073  12.1%    681,402 
Other Costs  (124,999) (137,765) (12,766) (10.2%)   (246,157)
           
Gross Operating Income (EBITDA) 215,283  243,591           28,308  13.1%    435,245 
           
Depreciation and Amortization       (46,817) (56,566)            (9,749) (20.8%)   (101,072)
           
Operating Income  168,466  187,025           18,559  11.0%    334,174 
           
Figures may differ from those accounted under Brazilian GAAP.         

Table 24

 
Ampla  2008  2009  Var 08-09  Chg % 
 
Customers (Th) 2,466  2,522  55  2.2% 
GWh Sold  9,119  9,394  275  3.0% 
Clients/Employee  1,900  2,042  142  7.5% 
Energy Losses %  20.2%  21.2%  1.0%  5.1% 
         

COELCE

Operating Income increased mainly due to higher energy average sales prices, higher physical sales and lower energy losses. The latter was partially offset by the negative conversion effect from local currency to Chilean pesos.

Tariff Review for the period 2007-2011 was held on March 2009 and the ANEEL set an adjustment of 11.25% to the final tariffs. Additionally, the annual revision designed to protect the company versus uncontrollable costs increases and inflation, set an adjustment of 11.95% in the final tariffs.

Table 25             
           
Coelce  Million Ch$    Thousand US$ 
     
  2008  2009  Var 08-09  Chg %     2009 
           
Total Revenues     759,779           766,723  6,944  0.9%    1,369,972 
Procurements and Services  (505,546) (490,036)          15,509  3.1%    (875,591)
Contribution Margin     254,234           276,687           22,453  8.8%    494,381 
Other Costs       (78,931)          (83,481)            (4,551) (5.8%)   (149,163)
           
Gross Operating Income (EBITDA)    175,303           193,206           17,903  10.2%    345,218 
           
Depreciation and Amortization       (35,361)          (42,031)            (6,670) (18.9%)   (75,100)
           
Operating Income     139,942           151,175           11,233  8.0%    270,118 
           
Figures may differ from those accounted under Brazilian GAAP.         

Pg. 34

PRESS RELEASE
Year Ended 2009
 

Table 26

 
Coelce  2008  2009  Var 08-09  Chg % 
 
Customers (Th) 2,842  2,965  124  4.4% 
GWh Sold  7,571  7,860  289  3.8% 
Clients/Employee  2,224  2,285  61  2.7% 
Energy Losses %  11.7%  11.6%  (0.1%) (1.3%)
         

CHILE

GENERATION

ENDESA CHILE

Consolidated Income Statement of Endesa Chile

Table 27             
           
Endesa Chile  Million Ch$    Thousand US$ 
     
  2008     2009  Var 08-09  Chg %    2009 
           
Total Revenues  2,536,388  2,418,919  (117,469) (4.6%)   4,322,095 
Procurements and Services  (1,304,453) (976,146) 328,307  25.2%    (1,744,166)
Contribution Margin  1,231,935  1,442,773  210,838  17.1%    2,577,930 
Other Costs  (171,167) (185,701) (14,534) (8.5%)   (331,809)
   
Gross Operating Income (EBITDA) 1,060,768  1,257,072  196,304  18.5%    2,246,121 
           
Depreciations and Amortizations  (186,605) (240,142) (53,537) (28.7%)   (429,082)
   
Operating Income  874,164  1,016,931  142,767  16.3%    1,817,039 
           
Net Financial Income  (188,895) (170,794) 18,101  9.6%    (305,173)
               Financial income  34,323  25,316  (9,007) (26.2%)   45,234 
               Financial expenses  (198,440) (188,368) 10,071  5.1%    (336,574)
               Income (Loss) for indexed assets and liabilities  (18,950) 9,275  28,226  148.9%    16,573 
               Foreign currency exchange differences, net  (5,828) (17,017) (11,189) (192.0%)   (30,406)
                   Gains  42,223  31,785  (10,437) (24.7%)   56,794 
                   Losses  (48,052) (48,803) (751) (1.6%)   (87,200)
Net Income from Related Comp. Cons. By the Prop. Eq.  82,132  98,458  16,326  19.9%    175,923 
Method             
Net Income from Other Investments  1,016  (90) (1,107) (108.9%)   (161)
Net Income from asset sales  (708) 65  773  109.2%    116 
   
Net Income before Taxes  767,708  944,569  176,860  23.0%    1,687,744 
           
               Income Tax  (210,178) (172,468) 37,709  17.9%    (308,164)
Continued Operations Result  557,531  772,100  214,570  38.5%    1,379,579 
               Gain (Loss) from discontinued operations, Net from  -  -  -  -    - 
               taxes             
Dicontinued Operations Result  557,531  772,100  214,570  38.5%    1,379,579 
   
NET INCOME  557,531  772,100  214,570  38.5%    1,379,579 
           
               Net Income Attributable to Owners of the             
               Company  433,177  627,053  193,876  44.8%    1,120,411 
           
               Net Income Attributable to             
               Minority Interest  124,354  145,047  20,693  16.6%    259,168 
           
*Includes generation subsidiaries in Chile, Argentina, Colombia and Peru.       

Chilean Operations

The Operating Income in Chile reached an important increase due to a drop in operating costs. This growth is mainly explained by the decrease in liquid fuel prices, improved hydrological conditions which result in lower fuel consumption and less energy purchases, a decrease in toll costs and higher availability of gas.

Pg. 35

PRESS RELEASE
Year Ended 2009
 

 

Table 28             
           
Chilean Operations  Million Ch$    Thousand US$ 
     
  2008       2009  Var 08-09  Chg %    2009 
           
Total Revenues  1,609,158  1,373,231  (235,927) (14.7%)   2,453,672 
Procurements and Services  (871,056) (511,522) 359,534  41.3%    (913,981)
Contribution Margin  738,102  861,709  123,607  16.7%    1,539,691 
Other Costs  (74,405)            (81,484) (7,079) (9.5%)   (145,595)
           
Gross Operating Income (EBITDA) 663,697  780,225  116,528  17.6%    1,394,096 
           
Depreciation and Amortization  (95,960) (140,185)          (44,225) (46.1%)   (250,481)
           
Operating Income  567,737  640,040  72,304  12.7%    1,143,616 
           

Table 29

 
Chilean Companies  2008  2009  Var 08-09  Chg % 
 
GWh Produced  21,267  22,239  972  4.6% 
GWh Sold  21,532  22,327  795  3.7% 
Market Share  40.8%  42.1%  1.3%  - 
         

DISTRIBUTION

CHILECTRA

Operating Income decreased due to lower energy purchase-sales margin resulting from lower VAD index as a result of the November 2008 tariff setting and Subtransmission decree which applied since January 2009.

Pg. 36

PRESS RELEASE
Year Ended 2009
 

 

Table 30             
           
Chilectra  Million Ch$    Thousand US$ 
     
  2008     2009  Var 08-09  Chg %     2009 
           
Sales  1,023,839  1,061,071  37,232  3.6%    1,895,909 
                 Other operating income  54,442  23,275  (31,166) (57.2%)   41,588 
Total Revenues  1,078,280  1,084,346  6,066  0.6%    1,937,497 
Procurements and Services  (762,601) (840,654) (78,054) (10.2%)   (1,502,071)
Contribution Margin  315,680  243,692  (71,988) (22.8%)   435,426 
Other Costs  (82,927) (91,544) (8,617) (10.4%)   (163,569)
           
Gross Operating Income (EBITDA) 232,753  152,148  (80,605) (34.6%)   271,857 
           
Depreciation and Amortization  (19,130) (23,116) (3,986) (20.8%)   (41,304)
           
Operating Income  213,623  129,032  (84,591) (39.6%)   230,553 
           
Net Financial Income  (24,721) 2,907  27,628  111.8%    5,194 
   Financial income  15,332  14,892  (440) (2.9%)   26,609 
   Financial expenses  (23,194) (17,385) 5,810  25.0%    (31,063)
   Income (Loss) for indexed assets and liabilities  (3,049) 458  3,507  115.0%    819 
   Foreign currency exchange differences, net  (13,810) 4,941  18,752  135.8%    8,829 
          Gains  55  8,283  8,228  15030.2%    14,800 
          Losses  (13,865) (3,342) 10,523  75.9%    (5,971)
Net Income from Related Comp. Cons. By the  74,875  82,757  7,882      147,869 
Prop. Eq. Method        10.5%     
Net Income from Other Investments  -  83  83  -    148 
Net Income from assets sales  (303) 12,051  12,354  4072.9%    21,532 
           
Net Income before Taxes  263,473  226,829  (36,644) (13.9%)   405,295 
           
   Income Tax  (37,443) (21,064) 16,379  43.7%    (37,638)
Continued Operations Result  226,030  205,765  (20,265) (9.0%)   405,767 
   Gain (Loss) from discontinued operations, Net  -  -  -  -    - 
   from taxes             
Dicontinued Operations Result  226,030  205,765  (20,265) (9.0%)   405,767 
           
NET INCOME  226,030  205,765  (20,265) (9.0%)   367,658 
           
   Net Income Attributable to Owners  236,700  203,309  (33,390) (14.1%)   363,270 
   of the Company             
           
   Net Income Attributable to  (10,670) 2,455  13,125  123.0%    4,387 
   Minority Interest             
           

Table 31

 
Chilectra  2008  2009  Var 08-09  Chg % 
 
Customers (Th) 1,534  1,579  45  2.9% 
GWh Sold  12,535  12,585  49  0.4% 
Clients/Employee  2,139  2,160  21  1.0% 
Energy Losses %  5.9%  6.1%  0.2%  2.8% 
         

Pg. 37

PRESS RELEASE
Year Ended 2009
 

COLOMBIA

GENERATION

EMGESA

Operating income of our generation business in Colombia reached Ch$ 250,811 million through December 2009, 15.7% higher than the same period in 2008. This improvement is mainly explained by an increase of average prices measured in local currency given lower hydrology conditions during the period as well as an increase of physical sales of 2.7% over 2008. This situation led to a weaker production mix, thus a 43% growth of procurements and services, in which energy purchases increased as well as fuel consumption for thermal generation. EBITDA, or gross operating income, increased 16.1% in the period, reaching Ch$ 287,328 million through December 2009.

In addition, Negative conversion effect from local currency to Chilean pesos reduced 5.6% the year 2009 results compared to last year’s figure.

Table 32             
           
Emgesa  Million Ch$    Thousand US$ 
     
  2008  2009  Var 08-09  Chg %    2009 
           
Total Revenues     401,470           500,964           99,494  24.8%                 895,117 
Procurements and Services  (128,688) (184,067) (55,379) (43.0%)   (328,890)
Contribution Margin     272,782           316,897           44,115  16.2%                 566,228 
Other Costs     (25,403)          (29,569)            (4,166) (16.4%)                (52,834)
           
Gross Operating Income (EBITDA)    247,378           287,328           39,949  16.1%                 513,393 
           
Depreciation and Amortization     (30,560)          (36,516)            (5,956) (19.5%)                (65,247)
           
Operating Income     216,818           250,811           33,993  15.7%                 448,147 
           
* Please notice that these figures could differ from those accounted under Colombian GAAP. 

Table 33

 
Emgesa  2008  2009  Var 08-09  Chg % 
 
GWh Produced  12,905  12,674  (232) (1.8%)
GWh Sold  16,368  16,806  438  2.7% 
Market Share  21.9%  20.5%  (1.4%) - 
         

DISTRIBUTION

CODENSA

Operating Income decrease is mainly explained by the negative conversion effect from local currency to Chilean pesos and the increase in operating expenses, partially compensated by higher purchase-sales margins.

Table 34             
           
Codensa  Million Ch$    Thousand US$ 
     
  2008  2009  Var 08-09  Chg %           2009 
           
Total Revenues     661,154           740,360           79,206  12.0%    1,322,866 
Procurements and Services  (334,349) (393,206) (58,857) (17.6%)   (702,576)
Contribution Margin     326,805           347,154           20,349  6.2%    620,290 
Other Costs       (70,101)          (88,302) (18,201) (26.0%)   (157,777)
           
Gross Operating Income (EBITDA)    256,704           258,852  2,147  0.8%    462,513 
           
Depreciation and Amortization       (53,725)          (58,967)            (5,243) (9.8%)   (105,362)
           
Operating Income     202,980           199,885             (3,095) (1.5%)   357,151 
           
* Please notice that these figures could differ from those accounted under Colombian GAAP. 

Pg. 38

PRESS RELEASE
Year Ended 2009
 

Table 35

 
Codensa  2008  2009  Var 08-09  Chg % 
 
Customers (Th) 2,285  2,361  76  3.3% 
GWh Sold  11,822  11,837  15  0.1% 
Clients/Employee  2,452  2,321  (130) (5.3%)
Energy Losses %  8.1%  8.2%  0.1%  1.6% 
         

PERU

GENERATION


EDEGEL

Operating income was Ch$ 76,049 million, an increase of Ch$ 24,276 million over December 2008. This is mainly explained by a better production mix given the positive hydrology conditions during the year. This situation allowed procurements and services costs to reduce by 26.9% compared to 2008, with lower fuel consumption and costs of energy purchases.

Table 36             
           
Edegel  Million Ch$    Thousand US$ 
     
  2008  2009  Var 08-09  Chg %    2009 
           
Total Revenues     208,497           213,625  5,128  2.5%                 381,702 
Procurements and Services  (98,453)            (72,014)          26,439  26.9%    (128,673)
Contribution Margin     110,044           141,611           31,567  28.7%                 253,029 
Other Costs  (22,038)            (27,350)            (5,312) (24.1%)                (48,868)
           
Gross Operating Income (EBITDA) 88,006           114,262           26,256  29.8%                 204,161 
           
Depreciation and Amortization  (36,233)            (38,213)            (1,980) (5.5%)                (68,278)
           
Operating Income  51,772  76,049           24,276  46.9%                 135,883 
           
* Please notice that these figures could differ from those accounted under Peruvian GAAP. 

Table 37

 
Edegel  2008  2009  Var 08-09  Chg % 
 
GWh Produced  8,102  8,163  61  0.8% 
GWh Sold  8,461  8,321  (140) (1.7%)
Market Share  31.6%  30.7%  (0.9%) - 
         

DISTRIBUTION

EDELNOR

Operating Income increased due to higher purchase-sales margins, an increase in physical sales and a reduction on energy losses.

Pg. 39

PRESS RELEASE
Year Ended 2009
 

Table 38                   
                   
Edelnor  Million Ch$        Thousand US$ 
     
  2008    2009    Var 08-09    Chg %    2009 
                   
Total Revenues  253,652    301,472    47,820    18.9%    538,667 
Procurements and Services  (149,816)   (185,707)   (35,890)   (24.0%)   (331,818)
Contribution Margin  103,836    115,766    11,930    11.5%    206,849 
Other Costs  (31,090)   (32,831)   (1,742)   (5.6%)   (58,663)
                   
Gross Operating Income (EBITDA) 72,746    82,934    10,188    14.0%    148,186 
                   
Depreciation and Amortization  (19,802)   (20,509)   (707)   (3.6%)   (36,646)
                   
Operating Income  52,944    62,425    9,481    17.9%    111,540 
                   
* Please notice that these figures could differ from those accounted under Peruvian GAAP. 

Table 39

 
Edelnor    2008    2009    Var 08-09    Chg % 
 
Customers (Th)   1,028    1,061    33    3.2% 
GWh Sold    5,599    5,716    117    2.1% 
Clients/Employee    1,800    1,782    (18)   (1.0%)
Energy Losses %    8.2%    8.1%    (0.1%)   (1.2%)
 

OPERATING INCOME BY SUBSIDIARY

Summary of operating revenues, operating costs (including procurements, services and other costs) and operating income of all Enersis’ subsidiaries, for the years ended in December 2008 and December 2009, detailed as follows:

Table 40

             
      2008        2009   
             
Million Ch$    Operating  Operating  Operating    Operating  Operating  Operating 
    Revenues  Costs   Income    Revenues  Costs   Income 
             
Endesa Chile (*)   2,536,388  (1,662,225) 874,164    2,418,919  (1,401,989) 1,016,931 
Cachoeira (**)   147,105  (52,323) 94,782    88,300  (37,671) 50,629 
Fortaleza (***)   110,163  (81,653) 28,510    138,595  (54,669) 83,926 
Cien (**)   72,777  (27,055) 45,722    97,961  (49,969) 47,993 
Chilectra    1,078,280  (864,657) 213,623    1,084,346  (955,314) 129,032 
Edesur    333,266  (287,639) 45,627    324,518  (292,642) 31,876 
Distrilima (Edelnor)   253,652  (200,708) 52,944    301,472  (239,047) 62,425 
Ampla    964,909  (796,443) 168,466    1,001,031  (814,006) 187,025 
Investluz (Coelce)   759,779  (619,837) 139,942    766,723  (615,548) 151,175 
Codensa    661,154  (458,174) 202,980    740,360  (540,475) 199,885 
CAM Ltda.    180,696  (174,306) 6,390    155,736  (153,447) 2,289 
Inmobiliaria Manso de Velasco Ltda.    14,712  (12,145) 2,568    10,464  (4,103) 6,361 
Synapsis Soluciones y Servicios IT Ltda.    69,804  (60,680) 9,124    74,312  (66,520) 7,792 
Enersis Holding and other investment vehicles    13,292  (40,906) (27,613)   14,987  (34,931) (19,943)
Consolidation Adjustments    (636,386)      642,810  6,424    (767,837) 735,079  (32,758)
             
Total Consolidation    6,559,591  (4,695,941) 1,863,651    6,449,888  (4,525,252) 1,924,636 
             

Pg. 40

PRESS RELEASE
Year Ended 2009
 

       
      2009   
       
Thousand US$    Operating  Operating  Operating 
    Revenues  Costs  Income 
       
Endesa Chile (*)   4,322,095  (2,505,056) 1,817,039 
Cachoeira (**)   157,773  (67,309) 90,464 
Fortaleza (***)   247,640  (97,682) 149,957 
Cien (**)   175,036  (89,284) 85,753 
Chilectra    1,937,497  (1,706,944) 230,553 
Edesur    579,844  (522,889) 56,955 
Distrilima (Edelnor)   538,667  (427,127) 111,540 
Ampla    1,788,629  (1,454,456) 334,174 
Investluz (Coelce)   1,369,972  (1,099,854) 270,118 
Codensa    1,322,866  (965,715) 357,151 
CAM Ltda.    278,268  (274,178) 4,090 
Inmobiliaria Manso de Velasco Ltda.    18,697  (7,332) 11,365 
Synapsis Soluciones y Servicios IT Ltda.    132,780  (118,857) 13,923 
Enersis Holding and other investment vehicles    26,779  (62,414) (35,635)
Consolidation Adjustments    (1,371,962) 1,313,431  (58,531)
       
Total Consolidation    11,524,582  (8,085,665) 3,438,917 
       
(*) 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 

Pg. 41

PRESS RELEASE
Year Ended 2009
 

OWNERSHIP OF THE COMPANY AS OF DECEMBER 31ST, 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, January 28th, 2010, 9:30 a.m. Eastern Time (11:30 a.m. Chilean Time). There will be a question and answer session following management's comments. Representing Enersis will be Mr. Alfredo Ergas, Chief Financial Officer and Mr. Ricardo Alvial, Risk Management & I.R. Director.

To participate, please dial +1 (617) 213-4850 or +1 (888) 679-8038 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 35689692

To access the phone replay, please dial +1 (617) 801-6888 or +1 (888) 286-8010 (toll free USA) Passcode ID: 47884403.

For this Conference Call you can access previously to the pre-registration site at https://www.theconferencingservice.com/prereg/key.process?key=RBGDFXNE3 and make your registration quicker. If not, please connect approximately 15 minutes prior to the scheduled start time. You can also access to the conference call replay through our website at http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=83615&eventID=2679201.

Pg. 42

PRESS RELEASE
Year Ended 2009
 

CONTACT INFORMATION

For further information, please contact us:

Ricardo Alvial
Risk Management and IR Director
ram@e.enersis.cl
56 (2) 353 4682
 
 
Carmen Poblete    Denisse Labarca    Bárbara López    Cristián Del Sante 
Shares Department    Investor Relations    Investor Relations    Investor Relations 
Associate    Associate    Associate    Associate 
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. 43

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: January 28, 2010