6-K 1 enipr4q12_6k.htm EARNINGS RELEASE 4Q12 enipr4q12_6k.htm - Generated by SEC Publisher for SEC Filing

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, 2013

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

YE 2012

 

ENERSIS

ANNOUNCES CONSOLIDATED RESULTS

FOR THE YEAR ENDED DECEMBER 31, 2012

 

 

Highlights for the Period

 

Ø  Operating revenues remained almost flat, showing a positive variation of 0.7% reaching Ch$ 6,577,677 million, mainly related to higher energy sales in distribution, partially offset by lower energy sales in generation due to lower average energy sale price. Demand for electricity continued showing important increases in every country:

 

·        Peru                 5.9%

·        Chile                5.2%

·        Brazil               4.5%

·        Argentina          4.2%

·        Colombia          3.8%

 

Ø  Physical sales in distribution increased 3,552 GWh, or 5.1%, while in generation, physical sales increased 1,471 GWh, or 2.3%.

 

Ø  Another factor that helps to understand higher revenues is the addition of almost 360 thousand new clients, in our six distribution companies, more than offsetting the lower average sale price in generation.

 

Ø  Procurement and Services costs increased 5.0%, reaching Ch$ 3,717,125 million, due to Ch$ 92,512 million higher energy purchases costs, increased transportation cost of
Ch$ 75,858 million, and higher fuel consumption of Ch$ 39,624 million. These higher costs are heavily influenced by more than three years of sustained drought in Chile.

 

Ø  The Company’s EBITDA decreased 6.8% during 2012, reaching Ch$ 1,982,924 million.

 

Ø  Financial result was Ch$ 216,189 million loss, 8.6% lower than in 2011. This better behavior is mainly explained by higher financial revenues of Ch$ 31,096 million.

  

Ø  Net Income before taxes decreased 2.1%, reaching Ch$ 1,305,453 million. 

 

Ø  Taxes decreased by Ch$ 48,945 million, equivalent to 10.6%, due to lower tax effects over companies.

 

Ø  Net income increased 2,4%, reaching Ch$ 893,562 million.

 

Ø  Net income attributable to owners of the company increased 0,5% or Ch$ 1,879 million.

 

Ø  The diversified portfolio of Enersis Group allowed us to maintain a well balanced contribution to our EBITDA by business segment,

 

•     Distribution:                                                48%

•     Generation and Transmission:                     52%

 

 

 

 

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 PRESS RELEASE

YE 2012

 

Distribution Business

 

Consolidated figures for the distribution businesses are detailed as follows:

 

Ø  Operating revenues remained in line compared to 2011, increasing 0.3% up to Ch$ 4,460,245 million.

Ø  Procurement and service costs were Ch$ 2,883,451 million, 0.7% lower than in 2011.

Ø  EBITDA in 2012 amounted to Ch$ 959,397 million, 2.1% higher than in 2011.

Ø  Energy sales by clients’ segment for each of our distribution companies were the following:

 

 

% Physical Sales

Chile

Argentina

Peru

Brazil

Colombia

TOTAL

2012

Chilectra

Edesur

Edelnor

Ampla

Coelce

Codensa

 

 

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

Residential

26%

26%

42%

43%

37%

37%

38%

40%

34%

34%

34%

34%

35%

36%

Industrial

22%

21%

8%

8%

19%

19%

11%

9%

14%

12%

7%

7%

13%

12%

Commercial

28%

29%

26%

26%

22%

22%

18%

20%

19%

19%

16%

16%

22%

22%

Others

24%

23%

25%

24%

22%

22%

32%

31%

33%

36%

43%

43%

30%

30%

TOTAL

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

 

 

EBITDA in the Distribution business, by country, was as follows:

 

In Chile, EBITDA grew by Ch$ 12,755 million, mainly explained by:

Ø  Higher operating margin of Ch$ 14,401 million, due to 5.5% higher physical sales, as a consequence of the increase in the economic activity and lower energy losses.

 

In Argentina, EBITDA decreased by Ch$ 22,659 million, mainly explained by:

Ø  Increase of Ch$ 21,227 million in other fixed operating costs due to higher costs in inputs and services hired for grid repair.

Ø  Increase of Ch$ 9,731 million in higher personnel expenses, explained by salary increases under union agreements.

Ø  This was partially offset by higher energy sales revenues of Ch$ 41,302 million, due to a higher demand for electricity and higher average sale price.

 

In Colombia, EBITDA increased by Ch$ 64,179 million, mostly as a result of:

Ø  The lower comparison base, due to the effect of the Colombian government equity tax reform, which implied recording in 2011 the entire tax payable during the period 2011-2014, which amounted to Ch$ 28,604 million.

Ø  Higher energy sales income of Ch$ 59,751 million, an 8.8% increase, explained by a 3.9% increase in physical sales due to higher demand and higher average energy sales price, expressed in Chilean pesos.

Ø  This was partially offset by higher procurement and service costs of Ch$ 29,240 million.

 

In Peru, EBITDA increased by Ch$ 2,542 million as a result of:

Ø  Increase of Ch$ 14,596 million, or 12.3%, in operating margin, due to a 4.4% increase in  physical sales and higher average energy sales price.

Ø  This was partially offset by an increase of Ch$ 8,599 million in personnel expenses, due to the one time effect of a provision reversal registered in 2011.

 

In Brazil, EBITDA decreased by Ch$ 37,017 million as a result of:

Ø  Lower operating revenues in Coelce of Ch$ 38,450 million and in Ampla of Ch$ 13,341 million,  due to a lower average energy sale price, partially offset by an increase of 10.1% and 5.8% respectively in physical sales.

 

 

 

Pg. 2

 
 PRESS RELEASE

YE 2012

 

Ø  This was partially offset by a decrease of Ch$ 49,499 million in other variable costs.

 

 

Generation and Transmission Business

 

Ø   Operating revenues remained almost constant reaching Ch$ 2,727,263 million, a 1% increase when compared to 2011, due to greater physical sales that more than offset a lower average energy sale price.

Ø   Procurement and services costs increased by 14.6% to Ch$ 1,459,307 million as a result of increases in all of its lines, especially in energy purchases costs of Ch$ 86,625 million, fuel consumption costs of Ch$ 39,625 million and transportation expenses of Ch$ 34,857 million.

Ø   EBITDA amounted to Ch$ 1,036,719 million, 13.6% lower compared to 2011.

Ø   Consolidated electricity generation grew 3.1% to 58,694 GWh, basically explained by better performance in Colombia, Brazil and Argentina.

Ø   Consolidated physical sales increased 2.3% to 66,311 GWh, mainly because of Colombia, Argentina, Brazil and Peru.

 

EBITDA in the Generation business, by country, was as follows:

 

In Chile, EBITDA decreased by Ch$ 202,658 million, mainly due to:

Ø   Lower energy sale revenues of Ch$ 182,872 million due to a decrease in physical sales as a consequence of lower hydro availability and the end of Gasatacama contracts, as well as lower average energy sale prices as a result of reduced contracts indexing to marginal cost in Chile, coupled with the absence of RM88 revenues.

Ø   Higher fuel consumption costs of Ch$ 53,099 million, and higher transportation costs of Ch$ 31,731 million.

Ø   Higher energy purchases costs of Ch$ 11,349 million due to higher prices in the spot market.

 

In Argentina, EBITDA decreased by Ch$ 21,469 million due to:

Ø   Lower operation revenues of Ch$ 47,625 million, as a consequence of a reduction in average energy sale prices in pesos, partly explained by the non-renewal of regulatory improvements obtained in 2010, which included a higher power payment to Costanera.

Ø   Higher personnel expenses of Ch$ 3,422 million mainly due to union agreements and larger personnel staff.

Ø   This was partially offset by lower fuel consumption cost of Ch$ 27,834 million due to lower thermal generation.

 

In Colombia, EBITDA grew by Ch$ 85,355 million, mainly due to,

Ø   Increase in operating revenues of Ch$ 81,582 million due to a 8.3% increase in the average energy sale price in pesos, in line with a higher market price in Colombia, and an 7.9% increase in physical sales due to higher hydro generation.

Ø   Ch$ 43,533 million decrease in other fixed operating costs due to a lower comparison base as a consequence of the non-recurring effect of the equity tax imposed by the Colombian government, registered in the first quarter of 2011.

Ø   This was partially offset by higher procurement and services costs of Ch$ 36,205 million, mainly explained by higher energy purchases costs of Ch$ 19,705 million and greater fuel consumption costs of Ch$ 12.269 million due mainly to greater backup fuel supply requested by the authorities on the occasion of the Summit of the Americas, held in Cartagena in the first quarter of 2012.

 

 

 

Pg. 3

 
 PRESS RELEASE

YE 2012

 

In Peru, EBITDA decreased by Ch$ 1,388 million due to:

Ø   Increase of Ch$ 15,387 million in personnel expenses due to a non-recurring effect registered in June 2011, which implied to reclassify a provision that originated a one-time benefit in personnel expenses.

Ø   Higher energy purchases costs of Ch$ 14,743 million and higher fuel consumption of Ch$ 6,107 million partly due to higher thermal generation with diesel as a consequence of maintenances in gas facilities.

Ø   The latter was partially offset by a Ch$ 42,283 million grow in operating revenues mainly explained by an 15.0% increase in average sale energy price and higher physical sales of 1.5%.

 

In Brazil, EBITDA decreased by Ch$ 23,402 million due to:

Ø   Higher procurement and services costs of Ch$ 75,706 million, mainly explained by higher energy purchases costs of Ch$ 42,302 million, both, in Central Fortaleza and Cachoeira Dourada, and by higher other variable costs of Ch$ 37,613 million, explained mainly by the effect of a tax provisions reversal (PIS/COFINS) recorded over tolls in CIEN in the year 2011.

Ø   This was partially offset by higher energy sale revenues of Ch$ 40,605 million, due to higher thermal generation in Fortaleza and higher hydraulic availability in Cachoeira Dourada and the increase of Ch$ 14,556 million in other services revenues, reflecting the increase in toll charges in CIEN.

 

 

Financial Summary

 

Ø  The average nominal interest rate decreased from 9.6% to 8.6%, mainly explained by a lower inflation rate in Chile and better rate conditions in the countries where we operate.

 

Ø  Liquidity, a key consideration in our financial management, continues to be in a very solid position, as shown below on a consolidated basis for Enersis,

 

·         Cash and cash equivalents                      US$ 2,196 million

·         Committed credit lines available               US$   573 million

·         Non-committed credit lines available        US$  1,607 million

 

Ø  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 fluctuations in these variables.

 

·         Our exchange rate policy is based on cash flows and we strive to maintain a balance between US dollar indexed flows, and assets and liabilities in such currencies. In addition to this policy, we have contracted cross currency swaps for a total amount of US$ 1,470 million and forwards for US$ 28 million as of December 31, 2012.

·         In order to reduce financial results volatility due to changes in market interest rates, we seek to maintain an adequate balance in our debt structure. Thus, as of December 31, 2012, we have contracted interest rate swaps (from variable to fixed rates) for US$ 463 million.

 

 

 

Pg. 4

 
 PRESS RELEASE

YE 2012

 

Market Summary

 

Ø  During 2012, the Chilean Stock Exchange’s main index, “IPSA”,  showed a 3.0% increase. South American markets where the company operates recorded positive results: BOVESPA (Brazil): 7.4%; Merval (Argentina): 15.9%; COLCAP (Colombia): 16.6%, and ISBVL (Peru) : 13.4%.

 

Ø  In Europe, the main Stock Exchanges showed a mixed performance over the last 12 months: IBEX: -4.7%, UKX: 5.8% and FTSE 250: 22.5%. On the other hand, the U.S. market performed positively in line with its economic recovery: S&P 500: 13.4% and Dow Jones Industrial: 7.3% (all yields measured in local currency).

 

Ø  Enersis’ share price showed a small decrease in 2012, falling from Ch$182.6 in December 31, 2011 to Ch$175.8 in December 31, 2012, which represents a 3.7% decrease for the period. This change is mainly attributable to the impact of the capital increase process announced in July 25, 2012, the negative global economic scenario and the poor hydrology suffered in Chile.

 

Ø  On the other hand, Enersis’ ADR showed a positive performance during this year, passing from US$ 17.6 on December 31, 2011, to US$ 18.2 on December 31, 2012. Regarding our share price in Latibex, it rose 4,1%, from € 0.267 to € 0.278.

 

Ø  During 2012, Enersis was again among the most actively traded companies in the local market (Santiago Stock Exchange and Chilean Electronic Exchange), with a daily average trading volume of US$ 9.0 million.

 

Source: Bloomberg

 

 

 

 

Pg. 5

 
 PRESS RELEASE

YE 2012

Risk Rating Classification Information

 

Key considerations, among others, for current risk rating of Enersis, are:

·         Its well diversified asset portfolio

·         Strong credit metrics

·         Adequate debt structure

·         Solid liquidity

 

The Company’s geographic diversification in South America provides a natural hedge against different regulations and weather conditions. Most of Enersis’ operating subsidiaries are financially strong and have leading market positions in the countries where Enersis operates.

 

Among the main events of the last months, we can highlight the following:

 

Ø  On January 15, 2013, Feller Rate ratified the “AA” local rating of Enersis’ bonds, shares and commercial papers program, also confirming the stable outlook.

 

Ø  On December 19, 2012, Fitch Ratings affirmed both ratings in local and foreign currency of Enersis of "BBB+", as well as its long-term rating on the national scale at 'AA (cl)'. The outlook is "stable".

 

Ø  On October 19, 2012, Standard & Poor's confirmed the international credit risk rating for Enersis of "BBB+" with stable Outlook. This took place on the occasion of the reviews of both Enel SpA and Endesa Spain in previous days, in which both credit risk ratings were affirmed with a downgrade in both Outlook from stable to negative, due to the downgrade applied to Spain.

 

Ø  On September 26, 2012, Humphreys assigned “AA” to Enersis local bonds, “AA/Level 1+” to the commercial papers program and “First Class Level 1” to the company’s shares.

 

Ø  On June 18, 2012, Moody's affirmed the “Baa2 with stable outlook” senior unsecured rating of Enersis.

 

 

Current international risk ratings are:

 

Enersis

S&P

Moody’s

Fitch

Corporate

BBB+ / Stable

Baa2 / Stable

BBB+ / Stable

 

 

Local ratings (for securities issued in Chile):

 

Enersis

Feller Rate

Fitch

Humphrey’s

Shares

1st Class Level 1

1st Class Level 1

1st Class Level 1

Bonds

AA / Stable

AA / Stable

AA / Stable

 

 

 

Pg. 6

 
 PRESS RELEASE

YE 2012

 

Table of Contents

Distribution Business

 2

Generation and Transmission Business

 3

Financial Summary

 4

Market Summary

 5

Risk Rating Classification Information

 6

Table of Contents

 7

General Information

 9

Simplified Organizational Structure

 10

Consolidated Income Statement Analysis

 11

Net Income

 11

Net Financial Income

 13

Sale of Assets

 14

Taxes

 14

Consolidated Balance Sheet Analysis

 14

Assets Under IFRS

 14

Book Value and Economic Value of Assets

 17

Book Value and Economic Value of Assets

 17

Liabilities and Shareholders’ Equity Under IFRS

 18

Debt Maturity with Third Parties, Thousand US$

 20

Debt Maturity with Third Parties, Million Ch$

 20

Evolution Of Key Financial Ratios

 21

Under IFRS

 22

Cash Flow Received From Foreign Subsidiaries by Enersis, Chilectra and Endesa Chile

 23

The Principal Risks associated to the activities of the Enersis Group

 24

Argentina

 29

Generation

 29

Endesa Costanera

 29

El Chocón

 30

Distribution

 31

Edesur

 31

Brazil

 32

Endesa Brasil

 32

Generation

 32

Cachoeira Dourada

 32

Fortaleza (cgtf) 

 33

Transmission

 34

CIEN

 34

Distribution

 34

Ampla

 35

Coelce

 36

 

 

 

Pg. 7

 
 PRESS RELEASE

YE 2012

 

 

Chile

 36

Generation

 36

Endesa Chile

 36

Distribution

 38

Chilectra

 38

Colombia

 39

Generation

 39

Emgesa

 39

Distribution

 40

Codensa

 40

Peru

 41

Generation

 41

Edegel

 41

Distribution

 42

Edelnor

 42

Market Information

 44

Equity Market

 44

Conference Call Invitation

 48

Disclaimer

 49

 

Pg. 8

 
 PRESS RELEASE

YE 2012

 

General Information

 

(Santiago, Chile, Wednesday, January 30, 2013.) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for the year ended December 31, 2012. All figures are in Chilean pesos (Ch$) and in accordance with International Financial Reporting Standards (IFRS). Variations refer to the period between December 31, 2011 and December 31, 2012.

 

Figures as of December 31, 2012 are additionally translated into US$, merely as a convenience translation, using the exchange rate of US$ 1 = Ch$ 479.96 for the Balance Sheet, and the average exchange rate for the period of US$ 1 = Ch$ 486.59 for the Income Statement, Cash Flow Statements, Capex and Depreciation values.

 

The consolidation includes the following investment vehicles and companies,

 

a)    In Chile: Endesa Chile (NYSE: EOC)¹, Chilectra, and Inmobiliaria Manso de Velasco.

b)    Others than Chile: Distrilima (Peru), Endesa Brasil²  (Brazil), Edesur (Argentina) and Codensa (Colombia).

 

¹    Endesa Chile includes

Chilean subsidiaries

Endesa Eco

Celta

Pehuenche

San Isidro, merged between San Isidro and Pangue, and

Túnel El Melón

non Chilean subsidiaries

Endesa Costanera

El Chocón

Edegel and

Emgesa) and,

jointly controlled companies

GasAtacama

Transquillota and,

HidroAysén.

 

²     Endesa Brazil includes

Endesa Fortaleza

CIEN

Cachoeira Dourada

Ampla and,

Coelce.

 

 

 

 

Pg. 9

 
 PRESS RELEASE

YE 2012

 

Simplified Organizational Structure

 

 

 

 

 

Pg. 10

 
 PRESS RELEASE

YE 2012

Consolidated Income Statement Analysis

Net Income

 

Enersis’ Net Income attributable to the owners of the controller for December 31, 2012 reached Ch$ 377,351 million, representing a 0.5% increase compared to 2011, which was Ch$ 375,471 million.

 

Under IFRS

 

Table 1

            

CONSOLIDATED INCOME STATEMENT

(Million Ch$)

  

(Thousand US$)

 

2011

2012

Var 2011-2012

Chg %

  

2012

Sales

6,254,252

6,260,309

6,057

0.1%

  

12,865,676

Energy sales

5,805,296

5,793,164

(12,132)

(0.2%)

  

11,905,637

Other sales

31,746

30,065

(1,681)

(5.3%)

  

61,788

Other services

417,210

437,080

19,870

4.8%

  

898,251

Other operating income

280,628

317,358

36,730

13.1%

  

652,208

Revenues

6,534,880

6,577,667

42,787

0.7%

  

13,517,884

             

Energy purchases

(1,762,818)

(1,855,330)

(92,512)

(5.2%)

  

(3,812,923)

Fuel consumption

(742,639)

(782,264)

(39,624)

(5.3%)

  

(1,607,644)

Transportation expenses

(393,991)

(469,849)

(75,858)

(19.3%)

  

(965,595)

Other variable costs

(638,986)

(609,683)

29,303

4.6%

  

(1,252,970)

Procurements and Services

(3,538,435)

(3,717,125)

(178,691)

(5.0%)

  

(7,639,133)

 

 

 

 

 

  

 

Contribution Margin

2,996,446

2,860,542

(135,904)

(4.5%)

  

5,878,752

             

Other work performed by entity and capitalized

50,173

48,854

(1,319)

(2.6%)

  

100,400

Employee benefits expense

(378,552)

(416,345)

(37,793)

(10.0%)

  

(855,639)

Other fixed operating expenses

(540,698)

(510,126)

30,572

5.7%

  

(1,048,369)

Gross Operating Income (EBITDA)

2,127,368

1,982,924

(144,444)

(6.8%)

  

4,075,144

Depreciation and amortization

(424,900)

(442,855)

(17,955)

(4.2%)

  

(910,119)

Reversal of impairment profit (impairment loss) recognized in profit or loss

(136,157)

(43,105)

93,052

68.3%

  

(88,586)

Operating Income

1,566,311

1,496,965

(69,346)

(4.4%)

  

3,076,439

             

Net Financial Income

(236,585)

(216,189)

20,396

8.6%

  

(444,293)

Financial income

233,613

264,709

31,096

13.3%

  

544,009

Financial costs

(465,411)

(453,447)

11,964

2.6%

  

(931,888)

Gain (Loss) for indexed assets and liabilities

(25,092)

(12,682)

12,411

49.5%

  

(26,062)

Foreign currency exchange differences, net

20,306

(14,769)

(35,075)

(172.7%)

  

(30,352)

Gains

80,873

48,761

(32,112)

(39.7%)

  

100,210

Losses

(60,567)

(63,530)

(2,963)

(4.9%)

  

(130,562)

Share of profit (loss) of associates accounted for using the equity method

8,466

9,846

1,380

16.3%

  

20,234

Net Income From Other Investments

1,038

737

(301)

(29.0%)

  

1,515

Net Income From Sale of Assets

(5,853)

14,094

19,947

340.8%

  

28,965

             

Net Income Before Taxes

1,333,377

1,305,453

(27,924)

(2.1%)

  

2,682,861

Income Tax

(460,837)

(411,891)

48,945

10.6%

  

(846,485)

NET INCOME ATTRIBUTABLE TO:

872,541

893,562

21,021

2.4%

  

1,836,376

Owners of parent

375,471

377,351

1,879

0.5%

  

775,500

Non-controlling interest

497,069

516,211

19,142

3.9%

  

1,060,876

             

Earning per share (Ch$ /share and US$ / ADR)

11.5

11.6

0.1

0.5%

  

1.2

 

 

Operating income decreased by Ch$ 69,346 million, 4.4% lower than 2011.

 

Operating revenues and costs breakdown by business line for the full year period ended December 31, 2011 and December 31, 2012 are:

 

 

 

Pg. 11

 
 PRESS RELEASE

YE 2012

 

 

 

Generation and transmission business registered an operating income of Ch$ 801,085 million, representing a Ch$ 193,288 million decrease as compared to 2011. Physical sales increased 2.3%, amounting to 66,311 GWh in 2012.

 

Table 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income by Businesses

Generation and Transmission

Distribution

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

 

2011

2012

 

 

 

2012

 

2011

2012

 

 

 

2012

 

Operating Revenues

2,700,026

2,727,263

 

1.0%

 

5,604,848

 

4,447,427

4,460,245

 

0.3%

 

9,166,331

 

Operating Costs

(1,705,652)

(1,926,178)

 

12.9%

 

(3,958,523)

 

(3,854,905)

(3,760,998)

  

(2.4%)

 

(7,729,296)

 

Operating Income

994,374

801,085

 

(19.4%)

 

1,646,325

 

592,522

699,247

 

18.0%

 

1,437,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income by Businesses

Eliminations and Others

 

Consolidated

 

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

 

2011

2012

 

 

 

2012

 

2011

2012

 

 

 

2012

 

Operating Revenues

(612,573)

(609,841)

 

(0.4%)

 

(1,253,295)

 

6,534,880

6,577,667

 

0.7%

 

13,517,884

 

Operating Costs

591,988

606,473

 

2.4%

 

1,246,374

 

(4,968,570)

(5,080,703)

  

2.3%

 

(10,441,445)

 

Operating Income

(20,585)

(3,368)

 

(83.6%)

 

(6,922)

 

1,566,311

1,496,965

 

(4.4%)

 

3,076,439

 

 

Operating income for generation and transmission business line, detailed by country is shown, in the following table:

 

Table 3

4

3

 

 

 

 

 

6

5

 

 

 

 

 

8

7

 

 

 

 

Generation & Transmission

Chile

 

Argentina

 

Brazil

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

2011

2012

 

 

 

2012

 

2011

2012

 

 

 

2012

 

2011

2012

 

 

 

2012

Operating Revenues

1,257,995

1,156,118

 

(8.1%)

 

2,375,959

 

395,296

347,671

 

(12.0%)

 

714,506

 

309,049

361,855

 

17.1%

 

743,655

% of consolidated

47%

42%

 

 

 

42%

 

15%

13%

 

 

 

13%

 

11%

13%

 

 

 

13%

Operating Costs

(859,191)

(980,366)

 

14.1%

 

(2,014,768)

 

(361,383)

(341,796)

 

(5.4%)

 

(702,430)

 

(105,556)

(181,111)

 

71.6%

 

(372,204)

% of consolidated

50%

51%

 

 

 

51%

 

21%

18%

 

 

 

18%

 

6%

9%

 

 

 

9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

398,804

175,752

 

(55.9%)

 

361,191

 

33,914

5,876

 

(82.7%)

 

12,075

 

203,493

180,744

 

(11.2%)

 

371,451

 

12

11

 

 

 

 

 

10

9

 

 

 

 

 

 

 

 

 

 

 

Generation & Transmission

Peru

 

Colombia

 

Consolidated

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

2011

2012

 

 

 

2012

 

2011

2012

 

 

 

2012

 

2011

2012

 

 

 

2012

Operating Revenues

239,841

282,124

 

17.6%

 

579,799

 

498,569

580,151

 

16.4%

 

1,192,279

 

2,700,026

2,727,263

 

1.0%

 

5,604,848

% of consolidated

9%

10%

 

 

 

10%

 

18%

21%

 

 

 

21%

 

100%

100%

 

 

 

 

Operating Costs

(135,187)

(181,072)

 

33.9%

 

(372,124)

 

(245,061)

(242,490)

 

(1.0%)

 

(498,346)

 

(1,705,652)

(1,926,178)

 

12.9%

 

(3,958,523)

% of consolidated

8%

9%

 

 

 

9%

 

14%

13%

 

 

 

13%

 

100%

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

104,655

101,053

 

(3.4%)

 

207,675

 

253,508

337,661

 

33.2%

 

693,933

 

994,374

801,085

 

(19.4%)

 

1,646,325

 

 

Distribution business showed a Ch$ 106,724 million higher operating income, totaling Ch$ 699,247 million. Physical sales amounted to 73,103 GWh, representing an increase of 3,572 GWh, or 5.1%. Our clients base increased by 359 thousand of new clients, amounting over 14 million customers.

 

Operating Income for distribution business line, detailed by country, is as follows:

 

 

 

Pg. 12

 
 PRESS RELEASE

YE 2012

 

 

Table 4

4

3

 

 

 

 

 

6

5

 

 

 

 

 

8

7

 

 

 

 

Distribution

Chile

 

Argentina

 

Brazil

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

2011

2012

 

 

 

2012

 

2011

2012

 

 

 

2012

 

2011

2012

 

 

 

2012

Operating Revenues

1,046,191

984,738

 

(5.9%)

 

2,023,754

 

279,725

321,242

 

14.8%

 

660,190

 

1,976,716

1,880,665

 

(4.9%)

 

3,864,988

% of consolidated

24%

22%

 

 

 

22%

 

6%

7%

 

 

 

7%

 

44%

42%

 

 

 

42%

Operating Costs

(926,506)

(851,364)

 

(8.1%)

 

(1,749,653)

 

(416,895)

(375,344)

 

(10.0%)

 

(771,377)

 

(1,622,070)

(1,575,943)

 

(2.8%)

 

(3,238,750)

% of consolidated

24%

23%

 

 

 

23%

 

11%

10%

 

 

 

10%

 

42%

42%

 

 

 

42%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

119,685

133,375

 

11.4%

 

274,101

 

(137,170)

(54,102)

 

(60.6%)

 

(111,187)

 

354,646

304,721

 

(14.1%)

 

626,238

 

12

11

 

 

 

 

 

10

9

 

 

 

 

 

 

 

 

 

 

 

Distribution

Peru

 

Colombia

 

Consolidated

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

 

Million Ch$

 

Chg%

 

Th. US$

2011

2012

 

 

 

2012

 

2011

2012

 

 

 

2012

 

2011

2012

 

 

 

2012

Operating Revenues

329,309

385,013

 

16.9%

 

791,248

 

815,487

888,586

 

9.0%

 

1,826,150

 

4,447,427

4,460,245

 

0.3%

 

9,166,331

% of consolidated

7%

9%

 

 

 

9%

 

18%

20%

 

 

 

20%

 

100%

100%

 

 

 

 

Operating Costs

(259,410)

(314,945)

 

21.4%

 

(647,249)

 

(630,025)

(643,402)

 

2.1%

 

(1,322,267)

 

(3,854,905)

(3,760,998)

 

(2.4%)

 

(7,729,296)

% of consolidated

7%

8%

 

 

 

8%

 

16%

17%

 

 

 

17%

 

100%

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

69,900

70,069

 

0.2%

 

143,999

 

185,462

245,184

 

32.2%

 

503,883

 

592,522

699,247

 

18.0%

 

1,437,035

 

 

Net Financial Income

 

The Company’s net financial income as of December 31, 2012 totaled a loss of Ch$ 216,189 million, 8.6% lower than in 2011. The latter is mainly explained by:

 

Higher financial expense of Ch$ 31,096 million, as a consequence of the actualization in Brazil of unamortized assets at the end of the concession in Ampla and Coelce to new replacement value depreciated by Ch$ 112,275 million, partially offset by lower actualization of accounts receivable to Celg, in Cachoeira Dourada by Ch$ 24,308 million, due to lower revenues by cash deposits of Ch$ 14.984 million, lower revenues from the pension plans assets in Brazil by Ch$ 9,967 million, lower revenues at Endesa Eco for update of the Put option in Canela of Ch$ 6,618 million and lower financial revenues in Endesa Costanera for the account receivable from CAMMESA of Ch$ 2,586 billion.

 

Lower financial revenues of Ch$ 11,964 million as a result of decreases in CIEN of Ch$ 21,972 million, due to lower average debt in the period and lower bill updates, in Ampla of Ch$ 19,387 million due to lower contingency update, in Endesa Fortaleza of Ch$ 9,617 million and in Investluz of Ch$ 7,539 million for higher costs in 2011. The latter was partially offset by increases in Coelce of Ch$ 22,071 million, for bills and litigation updates, in Edesur of Ch$ 20,521 for higher interests costs and account receivables to CAMMESA.

 

Lower adjustment units expenses of Ch$ 12,410 million due to the effect of the UF [1]  change mainly over UF denominated debt in some companies in Chile. This as a result of the 2012 period where the UF increased its value by 1.3% compared with the 2.6% increase during last year.

 

 

The latter was partially offset by:

 

Higher exchange rate expense of Ch$ 35,074 million, mainly explained by losses due to exchange rate variation in cash and cash equivalent of Ch$ 7,613 million and in debtors and other accounts receivable in US dollars of Ch$ 19,067 million and losses in other non-financial assets of Ch$ 8,989 million.

 

 

[1] Unidad de Fomento: Chilean inflation-indexed, peso-denominated monetary unit

 

 

 

Pg. 13

 
 PRESS RELEASE

YE 2012

 

 

Sale of Assets

 

Net income from sales of assets presented a positive variation of Ch$ 19,947 million, due mainly to the recognition in 2011 of the loss effects on the sale of CAM and Synapsis amounting to Ch$ 10,734 million and higher profits due to the sale of land this year in Coelce and Inmobiliaria Manso de Velasco of Ch$ 5,656 million.

 

Taxes

 

Income tax on companies presents a lower expense of Ch$ 48,946 million due mainly by decreases in Endesa Chile of Ch$ 60,964 million, Endesa Costanera of Ch$ 16,423 million, Edesur of Ch$ 15,183 million, Enersis of Ch$ 13,539 million, Cachoeira Dourada of Ch$ 10,262 billion, San Isidro of Ch$ 9,735 million, Coelce of Ch$ 8,302 billion, CIEN of Ch$ 7,213 million and Chilectra of Ch$ 6,880 million. This is partially offset by increases in Pehuenche of Ch$ 43,834 million, in Emgesa of Ch$ 16,872 million, Codensa of Ch$ 9,714 million and Edegel of Ch$ 3,526 million.

 

Consolidated Balance Sheet Analysis

 

Assets Under IFRS

 

Table 5

 

 

 

 

 

 

ASSETS

(Million Ch$)

 

(Thousand US$)

 

As of Dec 31, 2011

As of December 31, 2012

Var 2011-2012

Chg %

  

As of December 31, 2012

 

 

 

 

 

 

  

CURRENT ASSETS

 

 

 

 

 

 

Cash and cash equivalents

1,219,921

857,380

(362,541)

(29.7%)

 

1,786,357

Other current financial assets

939

194,501

193,562

20608.8%

 

405,244

Other current non-financial assets

72,466

105,920

33,453

46.2%

 

220,685

Trade and other current receivables

977,602

869,205

(108,398)

(11.1%)

 

1,810,994

Accounts receivable from related companies

35,283

33,029

(2,254)

(6.4%)

 

68,816

Inventories

77,926

83,479

5,554

7.1%

 

173,930

Current tax assets

141,828

211,005

69,177

48.8%

 

439,630

Non-current assets (or disposal groups) classified as held for sale

-

-

-

 

 

-

Total Current Assets

2,525,965

2,354,518

(171,447)

(6.8%)

 

4,905,656

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

Other non-current financial assets

37,355

439,116

401,761

1075.5%

 

914,901

Other non-current non-financial assets

109,501

87,822

(21,679)

(19.8%)

 

182,978

Trade accounts receivables and other receivables, net

443,328

202,978

(240,351)

(54.2%)

 

422,905

Investment accounted for using equity method

13,193

12,177

(1,017)

(7.7%)

 

25,370

Intangible assets other than goodwill

1,467,398

1,203,136

(264,263)

(18.0%)

 

2,506,741

Goodwill

1,476,404

1,399,877

(76,528)

(5.2%)

 

2,916,653

Property, plant and equipment, net

7,242,731

7,243,620

889

0.0%

 

15,092,133

Investment properties

38,056

46,923

8,867

23.3%

 

97,764

Deferred tax assets

379,939

327,667

(52,271)

(13.8%)

 

682,697

Total Non-Current Assets

11,207,906

10,963,315

(244,591)

(2.2%)

 

22,842,144

 

 

 

 

 

 

 

TOTAL ASSETS

13,733,871

13,317,834

(416,037)

(3.0%)

 

27,747,799

 

Total Assets decreased Ch$ 416,037 million, mainly due to:

 

Ø  Ch$ 171,447 million decrease in current assets, equivalent to 6.8%, as a result of:

 

v  Ch$ 362,541 million decrease in cash and cash equivalents mainly due to: Ch$ 193,067 million for payment of UF bonds series F and K and dividend payments in Endesa Chile, in Enersis of Ch$ 125,359 million, dividend payment of Ch$ 187,734 million, interest payments associated to dollar denominated bonds of Ch$ 23,953 million and other payments of Ch$ 13,463 million; in Coelce of Ch$ 55,615 million, in Chilectra of Ch$ 19,748 million and in Chocon of Ch$ 11,552 million. It was partially offset by increase in Emgesa of Ch$ 51,512 million, for higher fundraising.

 

 

 

Pg. 14

 
 PRESS RELEASE

YE 2012

 

 

v  Decrease in trade receivables of Ch$ 108,398 million, explained by decreases in Endesa Costanera of Ch$ 34,189 million, due to the reduction of the account receivable to CAMMESA, in CIEN of Ch$ 16,278 million, due to conversion effect and lower customer billing, in Ampla of Ch$ 15,829 million due to conversion effect offset by lower customer billing, in Pehuenche of Ch$ 12,999 million, due to lower customer billing and in Cachoeira Dourada of Ch$ 10,695 million, due to conversion effect and billing to Celg. Tha latter was partially offset by increase in Endesa Chile of Ch$ 2,258 million.

 

 

The latter was partially offset by:

 

v  Increase in other financial assets of Ch$ 193,562 million, primarily due to investments in financial assets at fair value with changes in results whose maturity is greater than 90 days, primarily in Endesa Brasil of Ch$ 83,611 million, in Codensa of Ch$25,828 million, in Emgesa of Ch$ 24,393 million, in Endesa Fortaleza of Ch$ 16,430 million, in Endesa Cachoeira of Ch$ 15,419 million, in Coelce of Ch$ 14,460 million and in Ampla of Ch$ 7,226 million.

 

v  Increase in current tax assets of Ch$ 69,177 million, mainly due to the increase in Endesa Chile of Ch$ 81,885 million, explained by largest remnant of VAT tax credit and credit for tax losses, partially offset by the decrease in Pehuenche of Ch$ 10,076 million by less PPM paid and in San Isidro of Ch$ 4,418 million for use of the remaining VAT.

 

v  Increase in other current non-financial assets of Ch$ 33,453 million, mainly due to the increase in Coelce of Ch$ 16,981 billion, by greater investment in research and development programmes, and Ampla of Ch$ 14,311 million.

 

 

Ø  Ch$ 244,591 million decrease in non-current assets equivalent to 2.2%, mainly due to:

 

v  Decrease in non-tangible assets other than goodwill of Ch$ 264,263 million, mainly explained by the effect of the reclassification to other non-current financial assets of Ch$ 120,598 million, because in the second quarter of 2012 the Brazilian electricity regulator, changed the depreciation period for the assets of the electricity distribution concessions; to the reduction of Ch$ 102,471 million due to amortization of the period and the conversion effect of Ch$ 216,860 million approximately. The above partially offset by new investments of Ch$ 178,120 million.

 

v  Decrease in non-current trade accounts receivables of Ch$ 264,263 million, due mainly to the effect of the application in Brazil of the Act N° 12,793 from January 11th, 2013, which confirmed that the VNR - new replacement value - should be used for the payment of compensation for unamortized distribution assets at the end of the concession. As a consequence, distribution companies must adjust accordingly the compensation financial asset balance to its VNR as of  31/12/2012 and the counterpart to financial result. The financial asset must be reclassified as other financial assets available for sale, whose effect of reclassification in Ampla and Coelce amounts to Ch$ 170,229 and Ch$ 99,644, respectively. Additionally in Cachoeira Dourada there’s a decrease in account receivable to Celg due to transfers to short-term of Ch$ 18,226 million and a decrease in Chocón of Ch$ 5,760 million by conversion effect, billings of the Foninvemem, offset by new deductions in subsection C.

 

 

 

Pg. 15

 
 PRESS RELEASE

YE 2012

 

 

 

v  Reduction of goodwill of Ch$ 76,528 million, corresponding mainly to the effect of conversion from local currencies to Chilean peso.

 

This was partially offset by:

 

v  Decrease in other non-current financial assets of Ch$ 401,761 million that correspond mainly to the reclassification carried out from fees receivable according to the application of the law N° 12,793 by Ch$ 269,873 million and recognition of VNR update to December 31, 2012 of Ch$ 112,275 million. In addition, an increase in hedge derivatives assets of Ch$ 20,206 million.

 

 

 

 

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 linearly depreciated by 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 goodwill value generated by consolidation represents the acquisition cost surplus on the Group’s stake in terms of the reasonable value of assets and liabilities, including the identifiable contingent liabilities of a subsidiary at the time of acquisition.  Goodwill 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.e 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.

 

Assets expressed in foreign currency are expressed 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. 16

 
 PRESS RELEASE

YE 2012

 

Liabilities and Shareholders’ Equity Under IFRS

 

 

Table 6

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

(Million Ch$)

 

 

 

 

(Thousand US$)

 

As of Dec 31, 2011

As of December 31, 2012

Var 2011-2012

Chg %

 

As of December 31, 2012

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

Other current financial liabilities

672,082

670,182

(1,900)

(0.3%)

 

1,396,329

Trade and other current payables

1,235,064

1,213,260

(21,805)

(1.8%)

 

2,527,835

Accounts payable to related companies

157,178

146,827

(10,350)

(6.6%)

 

305,916

Other short-term provisions

99,703

91,131

(8,572)

(8.6%)

 

189,871

Current tax liabilities

235,853

173,137

(62,717)

(26.6%)

 

360,732

Current provisions for employee benefits

-

-

-

 

 

-

Other current non-financial liabilities

60,653

86,575

25,922

42.7%

 

180,381

Liabilities (or disposal groups) classified as held for sale

-

-

-

 

 

-

Total Current Liabilities

2,460,534

2,381,112

(79,421)

(3.2%)

 

4,961,064

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

Other non-current financial liabilities

3,271,355

2,928,120

(343,235)

(10.5%)

 

6,100,758

Non-current payables

14,305

14,257

(47)

(0.3%)

 

29,705

Accounts payable to related companies

-

-

-

 

 

-

Other-long term provisions

202,574

177,079

(25,495)

(12.6%)

 

368,945

Deferred tax liabilities

508,438

519,026

10,588

2.1%

 

1,081,394

Non-current provisions for employee benefits

277,526

265,068

(12,458)

(4.5%)

 

552,271

Other non-current non-financial liabilities

102,985

69,403

(33,583)

(32.6%)

 

144,601

Total Non-Current Liabilities

4,377,183

3,972,953

(404,230)

(9.2%)

 

8,277,675

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Issued capital

2,824,883

2,824,883

-

0.0%

 

5,885,663

Retained earnings (losses)

2,232,969

2,421,279

188,310

8.4%

 

5,044,751

Share premium

158,760

158,760

-

0.0%

 

330,777

Other equity changes

-

-

-

 

 

-

Reserves

(1,320,883)

(1,511,123)

(190,240)

(14.4%)

 

(3,148,435)

 

 

 

-

 

 

 

Equity Attributable to Shareholders of the Company

3,895,729

3,893,799

(1,930)

(0.0%)

 

8,112,756

Equity Attributable to Minority Interest

3,000,425

3,069,970

69,545

2.3%

 

6,396,304

Total Shareholders' Equity

6,896,154

6,963,769

67,615

1.0%

 

14,509,060

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

13,733,871

13,317,834

(416,037)

(3.0%)

 

27,747,799

 

 

The Company’s total liabilities and shareholders’ equity decreased by Ch$ 416,037 million, compared to the period ended on December 31, 2011, due to Ch$ 404,230 million decrease in non-current liabilities and Ch$ 79,421 million in current liabilities. This was partially offset by a Ch$ 67,615 million increase in  shareholders’ equity.

 

Ø  Current liabilities decreased by Ch$ 79,421 million, equivalent to 3.2%, mainly due to:

v  Decrease of current taxes liabilities of Ch$ 62,716 million mainly due to decline in Chilectra of Ch$ 20,035 million, lower tax provision and lower VAT in Coelce of Ch$ 14,373 million, due to conversion and ICMS payment, in Cachoeira Dourada of Ch$ 14,027 million due to payments of taxes, in Edegel by Ch$ 10,454 million and CIEN of Ch$ 5,624 million. Partially offset by increase in Pehuenche of Ch$ 8,027 million.

 

 

 

 

Pg. 17

 
 PRESS RELEASE

YE 2012

 

v  Decrease in trade and other current payables of Ch$ 21,805 million due mainly to reductions in dividends payable of Ch$ 43,755 million, accounts payable to fiscal institutions of Ch$ 12,268 million and social programs obligations of Ch$ 11,324 million. This is partially offset by increases in obligations with energy suppliers of Ch$ 12,655 million and increases in fuel and gas suppliers of Ch$ 8,755 million.

 

Ø  Non-Current liabilities decreased by Ch$ 404,230 million, equivalent to 9,2%, mainly explained by:

 

v  Decrease in other non-current financial liabilities (borrowings and derivatives) of Ch$ 343,235 million, mainly in Endesa Chile of Ch$ 325,934 million due to UF bonds transferred to short term and debt in dollars exchange rate effects, in Coelce of Ch$ 63,328 million due to transfer to the short-term and conversion effect, in Codensa of Ch$ 61,309 million due to conversion effects and transfer to short-term, Endesa Costanera of Ch$ 49,749 million due to transfer to short-term, Edegel by Ch$ 30,399 million due to transfer to short-term, Edesur of Ch$ 23,012 million for conversion effects and transfer to short-term, in Chocón of Ch$ 17,152 million driven by the payment of loans and reclassification to short-term, Endesa Fortaleza of Ch$ 10,139 million, due to conversion effects and transfer to short-term and Edelnor by Ch$ 4,924 million because of conversion effect. This is partially offset by increases in Emgesa of Ch$ 224,888 million for the refinancing of the short-to long-term loans and Ampla of Ch$ 23,891 million due to the new issuance of a bond and a bank loan.

 

v  Decrease in other non-current non-financial liabilities of Ch$ 33,583 million mainly due to decreases in Emgesa of Ch$ 10,460 million due to transfer to short-term of equity tax, Codensa of Ch$ 6,727 million due to transfer to short-term equity tax, in CIEN of Ch$ 4,343 million, in Cachoeira of Ch$ 2,751 million, San Isidro of Ch$ 2,569 million due to transfer of Mitsubishi installment to short-term share and Gas Atacama of Ch$ 1,925 million.

 

v  Decrease in other long-term provisions of Ch$ 25,495 million, mainly due to decrease in Ampla of Ch$ 44,330 million driven by the reverse of Enertrade provision, partially offset by a increase in Coelce of Ch$ 15,601 million explained by increase in provisions for fines and litigation.

 

 

Equity increased by Ch$ 67,615 million with respect to the same period of 2011:

 

v  The equity attributable to shareholders of the Company decreased by Ch$ 1,930 million, explained mainly by the effect of the payment of dividends for the period of Ch$ 188,298 million, partly offset by the comprehensive result of the period of Ch$ 187,170 million, which is composed of a result of the parent company of Ch$ 377,351 million, negative conversion reserves during the period of Ch$ 217,343 million, positive hedge reserves of Ch$ 27,904 million and other reserves of Ch$ 743 million.

 

v  Non-controlling interest increased by Ch$ 69,545 million, explained mainly by the effect of the comprehensive result of the period of Ch$ 373,232 million, which decomposes by an increase in the result of the parent company in Ch$ 516,211 million,  negative other comprehensive result of the period of Ch$ 142,980 million and a decrease in other equity changes of Ch$ 303,687 million.

 

 

 

Pg. 18

 
 PRESS RELEASE

YE 2012

 

 

Debt Maturity with Third Parties, Thousand US$

 

Table 7

 

 

 

 

 

 

 

(Thousand US$)

2012

2013

2014

2015

2016

Balance

TOTAL

Chile

443,422.7

751,319.4

225,783.6

472,400.0

19,232.8

963,401.0

2,875,559.5

Enersis

5,265.8

610,823.0

5,888.7

456,712.1

6,585.4

35,503.8

1,120,778.8

Chilectra

0.1

-

-

-

-

-

0.1

Endesa Chile

438,156.8

140,496.4

219,894.9

15,687.9

12,647.5

927,897.2

1,754,780.6

Argentina

286,537.1

42,192.7

7,143.6

-

-

-

335,873.4

Edesur

56,504.7

6,115.6

-

-

-

-

62,620.3

Costanera

193,727.8

12,594.1

-

-

-

-

206,321.9

Chocón

36,030.1

23,483.0

7,143.6

-

-

-

66,656.7

Hidroinvest

274.6

-

-

-

-

-

274.6

CTM

-

-

-

-

-

-

-

TESA

-

-

-

-

-

-

-

Peru

118,608.4

119,371.7

89,124.4

93,275.3

84,709.3

204,712.5

709,801.6

Edelnor

64,738.8

65,568.5

52,905.9

33,411.8

35,034.1

121,828.6

373,487.6

Edegel

53,869.6

53,803.2

36,218.5

59,863.5

49,675.2

82,883.8

336,313.9

Brazil

218,731.2

163,526.3

138,771.0

211,935.1

208,308.0

250,692.1

1,191,963.7

Endesa Brasil

-

-

-

-

-

-

-

Coelce

92,817.6

94,674.6

41,102.1

92,555.0

66,708.1

83,621.6

471,478.9

Ampla

111,605.7

53,507.3

81,212.9

111,711.2

133,302.8

163,193.5

654,533.3

Cachoeira

-

-

-

-

-

-

-

Cien

-

-

-

-

-

-

-

Fortaleza

14,307.9

15,344.4

16,456.0

7,669.0

8,297.1

3,877.0

65,951.5

Colombia

146,941.8

221,498.3

164,382.8

105,001.4

340,547.7

1,144,138.5

2,122,510.6

Codensa

146,941.8

141,384.3

-

82,002.9

221,407.8

45,243.0

636,979.8

Emgesa

-

80,114.0

164,382.8

22,998.5

119,139.9

1,098,895.5

1,485,530.7

TOTAL

1,214,241

1,297,908

625,205

882,612

652,798

2,562,944

7,235,709

 

 

Debt Maturity with Third Parties, Million Ch$

 

Table 7.1

 

 

 

 

 

 

 

(Million Ch$)

2012

2013

2014

2015

2016

Balance

TOTAL

Chile

212,825

360,603

108,367

226,733

9,231

462,394

1,380,154

Enersis

2,527

293,171

2,826

219,204

3,161

17,040

537,929

Chilectra

0

-

-

-

-

-

0

Endesa Chile

210,298

67,433

105,541

7,530

6,070

445,354

842,224

Argentina

137,526

20,251

3,429

-

-

-

161,206

Edesur

27,120

2,935

-

-

-

-

30,055

Costanera

92,982

6,045

-

-

-

-

99,026

Chocón

17,293

11,271

3,429

-

-

-

31,993

Hidroinvest

132

-

-

-

-

-

132

CTM

-

-

-

-

-

-

-

TESA

-

-

-

-

-

-

-

Peru

56,927

57,294

42,776

44,768

40,657

98,254

340,676

Edelnor

31,072

31,470

25,393

16,036

16,815

58,473

179,259

Edegel

25,855

25,823

17,383

28,732

23,842

39,781

161,417

Brazil

104,982

78,486

66,605

101,720

99,980

120,322

572,095

Endesa Brasil

-

-

-

-

-

-

-

Coelce

44,549

45,440

19,727

44,423

32,017

40,135

226,291

Ampla

53,566

25,681

38,979

53,617

63,980

78,326

314,150

Cachoeira

-

-

-

-

-

-

-

Cien

-

-

-

-

-

-

-

Fortaleza

6,867

7,365

7,898

3,681

3,982

1,861

31,654

Colombia

70,526

106,310

78,897

50,396

163,449

549,141

1,018,720

Codensa

70,526

67,859

-

39,358

106,267

21,715

305,725

Emgesa

-

38,452

78,897

11,038

57,182

527,426

712,995

TOTAL

582,787

622,944

300,074

423,618

313,317

1,230,111

3,472,851

 

 

 

Pg. 19

 
 PRESS RELEASE

YE 2012

 

 

Evolution Of Key Financial Ratios

 

Table 8

 

 

 

 

 

Indicator

Unit

As of Dec 31, 2011

As of December 31, 2012

Var 2011-2012

Chg %

Liquidity

Times

1.03

0.99

(0.04)

(3.9%)

Acid ratio test *

Times

0.99

0.95

(0.04)

(4.0%)

Working capital

Million Ch$

65,431

(26,594)

(92,025)

(140.6%)

Working capital

Thousand US$

136,327

(55,408)

(191,735)

(140.6%)

Leverage **

Times

0.99

0.91

(0.08)

(8.1%)

Short-term debt

%

36.0

37.0

1.00

2.8%

Long-term debt

%

64.0

63.0

(1.00)

(1.6%)

* (Current assets net of inventories and prepaid expenses) / Current liabilities

 

 

 

** Total debt / (equity + minority interest)

 

 

 

 

 

 

 

 

 

 

 

Table 8.1

 

 

 

 

 

Indicator

Unit

2011

2012

Var 2011-2012

Chg %

Financial expenses coverage *

Times

4.5

4.1

(0.40)

(8.9%)

Op. income / Op. rev.

%

24.0

22.8

(1.2)

(5.0%)

ROE **

%

9.8

9.7

(0.2)

(1.5%)

ROA **

%

6.5

6.6

0.1

1.2%

* EBITDA / Financial costs

 

 

 

 

 

** Annualized figures

 

 

 

 

 

 

 

The liquidity ratio as of December 31, 2012 was 0.99 times, showing a 0.04 pp decrease compared to December 31, 2011. This reflects a stable company with a solid liquidity position, fulfilling its financial liabilities, financing its investments with cash generation and a comfortable debt maturity structure.

  

The leverage ratio is 0.91 times as of December 31, 2012, reducing by 8.1% compared to December 31,  2011.

  

The financial expenses coverage shows a fall of 0.4 times, equivalent to 8.8%, moving from 4.52 times as of December 31, 2011 to 4.12 times as of December 31, 2012. This is the result of the increase in the company’s financial cost in this period and the decrease in EBITDA.

  

The profitability indicator, operating income over operating revenues, fell 5.0% to 22.8% as of December 31, 2012.

  

On the other hand, the annualized return on equity of the shareholders of the Company is 9.7%, with a fall of 1.5% compared to December 31, 2011 when it was 9.8%. This was consequence of the lower result reported for the annualized period, compensated by the increase of the equity of the owners.

  

The annualized return on assets moved from 6.5% as of December 31, 2011 to 6.6% in December 31, 2012 as a result of the decline in the company’s assets, partially offset by a lower result for the annualized present period.

 

 

 

Pg. 20

 
 PRESS RELEASE

YE 2012

 

Consolidated Statements of Cash Flows Analysis

Under IFRS

   

 

 

Table 9

            

CASH FLOW

(Million Ch$)

 

(Thousand US$)

 

2011

2012

Var 2011-2012

Chg %

  

2012

             

Collection classes provided by operating activities

            

Proceeds from sales of goods and services

7,725,639

7,496,003

(229,636)

(3.0%)

  

15,405,173

Cash receipts from royalties, fees, commissions and other revenue

86,290

92,758

6,468

7.5%

  

190,629

Receipts from contracts held for purposes of dealing or trading

-

-

-

   

-

Receipts from premiums and claims, annuities and other benefits from policies written

-

-

-

   

-

Other cash receipts from operating activities

256,467

391,975

135,508

52.8%

  

805,555

Types of payments

            

Payments to suppliers for goods and services

(3,942,239)

(3,934,574)

7,665

0.2%

  

(8,086,016)

Payments from contracts held for dealing or trading

-

-

-

   

-

Payments to and on behalf of employees

(358,459)

(409,540)

(51,080)

(14.2%)

  

(841,652)

Payments for premiums and claims, annuities and other policy benefits underwritten

(5,742)

(9,398)

(3,656)

(63.7%)

  

(19,314)

Other payments for operating activities

(1,545,841)

(1,352,330)

193,511

12.5%

  

(2,779,198)

Dividends paid

(0)

-

0

(100.0%)

  

-

Dividends received

-

0

0

   

0

Payments of interest classified as operating

-

0

       

Proceeds of interest received classified as operating

-

(0)

(0)

    

(0)

Income taxes refund (paid)

(361,092)

(457,738)

(96,646)

(26.8%)

  

(940,706)

Other inflows (outflows) of cash

(156,576)

(256,517)

(99,941)

(63.8%)

  

(527,173)

Net cash flows from (used in) operating activities

1,698,446

1,560,639

(137,808)

(8.1%)

 

3,207,297

             

Cash flows from (used in) investing activities

            

Cash flows from losing control of subsidiaries or other businesses

12,662

-

(12,662)

(100.0%)

  

-

Cash flows used for control of subsidiaries or other businesses

-

-

-

   

-

Acquisitions of associates

-

-

-

   

-

Other cash receipts from sales of equity or debt instruments of other entities

-

-

-

   

-

Other payments to acquire equity or debt instruments of other entities

-

-

-

   

-

Other proceeds from the sale of interests in joint ventures

-

-

-

   

-

Cash flows used for the purchase of non-controlling

-

-

-

   

-

Loans to related companies

(26)

-

26

(100.0%)

  

-

Proceeds from sales of property, plant and equipment

6,049

918

(5,130)

(84.8%)

  

1,887

Purchase of property, plant and equipment

(495,959)

(527,631)

(31,672)

(6.4%)

  

(1,084,343)

Proceeds from sales of intangible assets

8,966

-

(8,966)

(100.0%)

  

-

Acquisitions of intangible assets

(187,864)

(187,491)

373

0.2%

  

(385,315)

Proceeds from other long term assets.

41

306

264

643.2%

  

628

Purchase of other long-term assets

(2,183)

(2,860)

(676)

(31.0%)

  

(5,877)

Other inflows (outflows) of cash

-

-

-

   

-

Prepayments and third party loans

-

-

-

   

-

Proceeds from prepayments reimbursed and third party loans

-

-

-

   

-

Payments arising from futures contracts, forwards, options and swap

-

0

0

   

0

Cash receipts from futures contracts, forwards, options and swap

-

0

0

   

0

Proceeds from related

-

-

-

   

-

Dividends received

4,025

7,540

3,514

87.3%

  

15,495

Proceeds of interest received classified as operating

19,612

56,688

37,076

189.0%

  

116,500

Income taxes refund (paid)

-

-

-

   

-

Other inflows (outflows) of cash

10,707

(195,751)

(206,458)

(1928.2%)

  

(402,292)

Net cash flows from (used in) investing activities

(623,970)

(848,281)

(224,311)

(35.9%)

 

(1,743,318)

Proceeds from shares issue

-

-

-

   

-

Proceeds from issuance of other equity instruments

-

-

-

   

-

Payments to acquire or redeem the shares of the entity

-

(0)

(0)

    

(0)

Payments for other equity interests

-

-

-

   

-

Total loan amounts from

646,273

508,818

(137,455)

(21.3%)

  

1,045,681

Proceeds from term loans

525,078

400,798

(124,280)

(23.7%)

  

823,686

Proceeds from short-term loans

121,195

108,020

(13,175)

(10.9%)

  

221,994

Repayments of borrowings

9,129

-

(9,129)

(100%)

  

-

Payments of loans

(629,404)

(651,209)

(21,805)

(3.5%)

  

(1,338,312)

Payments of finance lease liabilities

(11,479)

(25,492)

(14,013)

(122.1%)

  

(52,389)

Repayment of loans to related companies

-

-

-

   

-

Proceeds from government grants

-

-

-

   

-

Dividends paid

(648,107)

(547,082)

101,025

15.6%

  

(1,124,318)

Payments of interest classified as operating

(248,097)

(254,328)

(6,231)

(2.5%)

  

(522,673)

Income taxes refund (paid)

-

(0)

(0)

    

(0)

Other inflows (outflows) of cash

(9,744)

(42,791)

(33,047)

(339.2%)

  

(87,941)

Net cash flows from (used in) financing activities

(891,430)

(1,012,084)

(120,654)

(13.5%)

 

(2,079,952)

             

Net increase (decrease) in cash and cash equivalents, before the effect of changes in the exchange rate

183,047

(299,726)

(482,773)

(263.7%)

 

(615,973)

             

Effect of exchange rate changes on cash and cash equivalents

75,519

(62,815)

(138,334)

(183.2%)

  

(129,092)

             

Increase (decrease) in cash and cash equivalents

258,566

(362,541)

(621,107)

(240.2%)

 

(745,065)

             

Cash and cash equivalents at beginning of period

961,355

1,219,921

258,566

26.9%

  

2,507,082

             

Cash and cash equivalents at end of period

1,219,921

857,380

(362,541)

(29.7%)

  

1,762,017

 

 

 

Pg. 21

 
 PRESS RELEASE

YE 2012

 

The company generated a negative net cash flow during the period of Ch$ 299,726 million, compounded by the following:

  

Operating activities for this period generated a net positive flow of Ch$ 1,560,639 million, a fall of 8.1% compared to 2011. This flow is mainly composed of cash receipts from sales and royalties of Ch$ 7,588,761 million and other operating flows of Ch$ 391,975 million, offset by payments to suppliers of Ch$ 3,934,574 million, payment to employees of Ch$ 409,540 million and other operation payments of Ch$ 2,075,984 million.

 

Investment activities generated a negative net cash flow of Ch$ 848,281 million, a decrease in cash of 35.9% or Ch$ 224,311 million compared to 2011. These disbursements relate mainly to the acquisition of properties, plant and equipment of Ch$ 526,712 million,  the incorporation of intangible assets (IFRIC 12 in Brazil) of Ch$ 187,491 million, and other  investment disbursements of Ch$ 198,305 million, partially compensated by interests received of Ch$ 56,687 million and other investment amounts of Ch$ 7,540 million.

  

Financing activities generated a net negative cash flow of Ch$ 1,012,084 million, mainly for loan payments of Ch$ 676,701 million, payment of dividends of Ch$ 547,082 million, interest payments of Ch$ 254,328 and other financing disbursements of Ch$ 42,791 million. This was partially offset by loan drawings of Ch$ 508,818 million.

 

Cash Flow Received From Foreign Subsidiaries by Enersis, Chilectra and Endesa Chile

 

Table 10

 

 

 

 

 

 

 

 

 

 

Cash Flow

Interest Received

Dividends Received

Capital Reductions

Others

Total Cash Received

(Thousand US$)

 

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

Argentina

1,503.3

-

-

-

-

-

101.8

-

1,605.1

-

Peru

-

-

77,896.4

55,514.8

-

-

-

-

77,896.4

55,514.8

Brazil

-

-

345,810.2

19,000.2

-

-

-

-

345,810.2

19,000.2

Colombia

-

-

27,664.4

126,373.0

-

-

-

-

27,664.4

126,373.0

Others

-

-

-

-

-

-

-

-

-

-

Total

1,503.3

-

451,371.1

200,888.0

-

-

101.8

-

452,976.2

200,888.0

 

Source: Internal Financial Report

 

 

 

Pg. 22

 
 PRESS RELEASE

YE 2012

 

Table 11

 

 

 

 

 

 

 

 

 

 

Payments for Additions of Fixed Assets

 

Depreciation

 

 

 

 

 

 

 

 

 

 

 

Million Ch$

 

Thousand US$

 

Million Ch$

 

Thousand US$

 

2011

2012

 

2012

 

2011

2012

 

2012

Endesa Chile

264,883

261,759

 

537,946

 

170,051

186,803

 

383,902

Cachoeira

686

8,209

 

16,870

 

7,280

6,318

 

12,984

Endesa Fortaleza

7,530

4,028

 

8,278

 

8,051

6,472

 

13,301

Cien

310

3,220

 

6,617

 

11,122

13,568

 

27,884

Chilectra S.A.

19,947

47,435

 

97,485

 

21,777

21,650

 

44,493

Edesur

82,014

85,540

 

175,795

 

13,244

13,709

 

28,174

Edelnor

37,704

48,450

 

99,570

 

20,002

22,458

 

46,154

Ampla (*)

131,519

112,415

 

231,026

 

56,424

57,535

 

118,241

Coelce (*)

51,309

74,774

 

153,669

 

41,649

34,675

 

71,261

Codensa

77,456

67,251

 

138,209

 

59,957

63,168

 

129,818

Cam Ltda.(**)

46

-

 

-

 

294

-

 

-

Inmobiliaria Manso de Velasco Ltda.

2,311

274

 

563

 

259

245

 

504

Synapsis (***)

488

-

 

-

 

478

-

 

-

Enersis holding and investment companies

991

1,463

 

3,007

 

1,208

1,292

 

2,655

Total

677,194

714,818

 

1,469,036

 

411,796

427,893

 

879,371

(*) 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 regulations may affect the Group’s activities, economic situation and operating results.

 

The Group’s distribution activity is subject to a wide 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 is subject to existing hydrological and weather conditions in the 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.

 

Group’s activities are subject to certain environmental regulation which Enersis fulfills constantly. Modifications applied on such regulations may affect the operations, economic condition or the results of these operations.

 

Enersis and its operating subsidiaries are subject to environmental regulations which, among other things, require the company to conduct environmental impact studies for future projects, obtaining permits, licenses and other authorizations and the fulfillment of all requirements of those licenses, permits and norms. As any other regulated company, Enersis cannot guarantee:

 

·        The approval from regulators of environmental impact studies.

·        That public opposition may not cause delays or modifications to any proposed project and

 

 

 

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YE 2012

 

·        That laws or regulations may not change or be interpreted in a manner that could adversely affect the operations or the plans for companies in which Enersis or its subsidiaries hold investments.

 

The group’s commercial activity has been planned to moderate possible impacts resulting from changes in hydrological conditions.

 

Enersis group’s operations include hydroelectric generation and therefore depend on the hydrological conditions at any time in the broad geographical zones where its hydroelectric generation installations are located. If hydrological conditions produce droughts or other conditions that negatively affect hydroelectric generation, the results could be adversely affected. Enersis has therefore defined as an essential part of its commercial policy not to contract 100% of its total capacity. The electricity business is also affected by atmospheric conditions like average temperatures which govern consumption. The different weather conditions can produce differences in the margin obtained by the business.

 

Financial situation and the results from operations could be adversely affected if risk exposure weren’t efficiently managed in regards to interest rates, prices of commodities, and exchange rates.

 

Interest Rate Risk

 

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

 

In compliance with our current interest rate hedging policy, the portion of fixed and/or hedged debt to the total net debt was 61% as of December 31, 2012 on a consolidated basis.

 

Depending on the Group’s estimates and debt structure objectives, hedging transactions take place hiring derivatives that mitigate these risks. Instruments currently used to accomplish the policy, are interest rate swaps.

 

The structure of Enersis’ financial debt sort by fixed, protected and variable interest rate, and after derivatives, is as follows:

 

Net Position:

 

Dec. 31 2012

Dec. 31 2011

%

%

Fixed Interest Rate

61%

62%

Variable Interest Rate

39%

38%

Total

100%

100%

 

 

Exchange Rate Risk

 

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

  • Foreign currency debts raised by Group’s companies.
  • Payments to be made on international markets for the acquisition of projects related materials.
  • Group companies’ incomes directly linked to the evolution of the dollar, and
  • Incoming cash flows from our subsidiaries abroad exposed to exchange rate fluctuations.

 

 

 

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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 dollar indexed flows and the asset and liability levels in such currency.  Cross currency swaps and exchange rate forwards are the instruments currently used in compliance with this policy. Likewise, the policy looks to refinance debts in each company’s functional currency.

   

Commodities Risk

 

Enersis is exposed to price fluctuation risk on some commodities, basically through

  • Fuel purchases for the electricity generation and also,
  • Energy transactions in the local markets.

 

In order to reduce risks in extreme drought conditions, the company has designed a trading policy that defines sales commitment levels consistent with its generating plants’ firm energy in a dry year, including risk mitigation clauses in some unregulated clients’ contracts.

 

In view of the operative conditions by the electricity generation market in Chile has experienced, like extreme drought and rising oil prices, the company has decided to hire a derivative to place a cap on the Brent price for consumption. As of December 31, 2012 there are no outstanding coverage instruments and instruments taken in the past have been specific and for no considerable monetary amounts. Market and operative conditions will be constantly analyzed to adjust the volume hedged or take new hedges for the following months.

 

Liquidity Risk

 

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

 

As of December 31, 2012, the Enersis Group held liquidity in the amount of Ch$ 857,380 million in Cash and Cash Equivalent and Ch$ 240,683 million in committed long term credit lines. As of December 31st, 2011, the Enersis Group held liquidity in the amount of Ch$ 1,219,921 million in Cash and Cash Equivalent and Ch$ 238,832 million in committed long term credit lines.

 

Credit Risk

 

Credit risk in accounts receivable, originating from trading activities, has been historically very limited given that the short term collection conditions with customers 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 requirements are defined.

 

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

 

 

 

 

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In turn, in our electricity distribution business, the energy supply cut-off is a power held by our companies in case of default by our customers, applied in accordance with the applicable regulation in each country, enabling the credit risk evaluation and control process, which is also limited.

 

Surplus cash flow investments are placed in prime national and foreign financial entities (with an investment grade equivalent risk rating) with limits established for each entity.

 

In the selection of banks for investment, the Group considers those that hold two investment grade classifications, according to the three main international rating agencies (Moody’s, S&P and Fitch Ratings).

 

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 with highly solvent entities; about 80% of operations are conducted with entities that hold an A- or higher rating.

 

Risk Measurement

 

The Enersis Group measures the Value at Risk (VaR) of its debt and financial derivatives positions in order to guarantee 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% of confidence. 

 

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, taking into account the different currencies our companies operate under, and
  • The exchange rates of the different currencies involved in the calculation.

 

The calculation of VaR is based on generating possible future scenarios (at one day) of market values (both spot and term) for the risk variables, using Bootstrapping methodology. The number of scenarios generated ensures compliance with the simulation convergence criteria. A matrix of volatilities and correlations between the various risk variables calculated based on the historical values of the logarithmic price return, has been applied to simulate the future price scenario.

 

Once the price scenarios have been obtained, the fair value of the portfolio is calculated using such scenarios, obtaining a distribution of possible values at one day. The one-day 95% confidence VaR number is calculated as the 5% percentile of the potential increases in the fair value of the portfolio in one day.

 

The various debt positions and financial derivatives included in the calculation have been valued consistently using the financial capital calculation methodology reported to Management.

 

 

 

 

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YE 2012

 

Taking in consideration the above mentioned hypotheses, the breakdown for VaR in every mentioned type of positions is the following:

 

Financial Positions

Dec. 31

2012

Dec. 31

2011

Th Ch$

Th Ch$

Interest Rate

16,015,372

41,560,004

Exchange Rate

2,344,016

3,602,591

Correlation

(638,396)

(310,050)

Total

17,720,992

44,852,545

 

 

 

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, and in the case of Enersis, its subsidiaries Endesa Chile and Chilectra, with an individual principal amount outstanding in excess of US$ 50 million (or its equivalent in other currencies), and with a missed payment also in excess of US$ 50 million, 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 debt of the companies mentioned above, 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.

 

Similarly, nonpayment – after any given applicable grace period - of the debts of Enersis and Endesa Chile or any of their Chilean subsidiaries, in single indebtedness in default with a principal in excess of US$ 30 million, could potentially give rise to a cross default of Enersis and Endesa Chile Yankee bonds. 

 

Finally, in the case of local bonds of Enersis and Endesa Chile, prepayment is triggered only as a result of a default of the Issuer.

 

There are no clauses in the credit agreements by which changes in the corporate or debt classification of these companies from risk rating agencies could trigger prepayments. Nevertheless, a modification in the Feller Rate and Fitch Ratings Chile local debt risk classification could trigger a change in the applicable margin to determine the interest rate, in the local committed credit lines executed in 2009.

 

 

 

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YE 2012

 

Argentina

  Generation

 

In Argentina, the operating income for the period amounted to Ch$ 5,876 million, representing an 82.7% drop when compared to 2011. This is primarily explained by lower operating income of Ch$ 47,625 million, due to a 12.8% reduction in energy sales revenues. The foregoing was partially offset by a Ch$ 34,227 million reduction in procurement and service costs, mainly explained by a decrease of 9.8% in fuel consumption.

 

EBITDA from operations in Argentina amounted to Ch$ 29,093 million; namely, 42.5% lower compared to that recorded in 2011. 

 

Endesa Costanera

 

Endesa Costanera’s operating income decreased by Ch$ 28,568 million, showing a negative result of Ch$ 22,088 million in 2012. This is explained by a 13.7% reduction in operating revenues, due to lower energy sales revenues of Ch$ 49,706 million and by a 16.1% reduction in the average energy sale price. This was partially offset by a Ch$ 30,673 million reduction in procurement and service  costs, mainly due to a 9.8% reduction in fuel consumption and a reduction of Ch$ 3,053 million in transportation costs. Physical sales reached 8,655 GWh, 1.9% higher than in 2011.

 

The net effect of translating the financial statements from Argentine pesos to Chilean pesos in both periods led to a 8.6% decrease in Chilean pesos in 2012, when compared to 2011.

 

 

Table 12

 

 

 

 

 

 

Endesa Costanera

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

341,824

295,140

(46,684)

(13.7%)

 

606,547

Procurement and Services

(298,842)

(268,169)

30,673

10.3%

 

(551,119)

Contribution Margin

42,982

26,971

(16,012)

(37.3%)

 

55,428

Other Costs

(23,247)

(28,952)

(5,705)

(24.5%)

 

(59,500)

Gross Operating Income (EBITDA)

19,735

(1,981)

(21,717)

(110.0%)

 

(4,072)

Depreciation and Amortization

(13,256)

(20,107)

(6,851)

(51.7%)

 

(41,322)

Operating Income

6,480

(22,088)

(28,568)

(440.9%)

 

(45,394)

Figures may differ from those accounted under Argentine GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 12.1

 

 

 

 

 

 

Endesa Costanera

2011

2012

Var 2011-2012

Chg%

 

 

GWh Produced

8,397

8,488

91

1.1%

 

 

GWh Sold

8,493

8,655

161

1.9%

 

 

Market Share

7.3%

7.1%

(0.2) pp.

 

 

 

 

 

 

 

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YE 2012

 

El Chocón

 

El Chocón’s operating income reached Ch$ 24,865 million, reflecting a 4.7% increase when compared to 2011. This result is mainly explained by a 19.9% decrease in energy purchases costs. Physical sales increased 10.7%, resulting from increased hydro generation in the period.

 

The net effect of translating the financial statements from Argentine pesos to Chilean pesos in both periods led to a 8.6% decrease in Chilean pesos in 2012, when compared to 2011.

 

Table 13

 

 

 

 

 

 

El Chocón

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

48,341

49,193

852

1.8%

 

101,097

Procurement and Services

(16,876)

(14,147)

2,729

16.2%

 

(29,074)

Contribution Margin

31,466

35,046

3,580

11.4%

 

72,024

Other Costs

(4,903)

(7,595)

(2,693)

(54.9%)

 

(15,609)

Gross Operating Income (EBITDA)

26,563

27,451

888

3.3%

 

56,415

Depreciation and Amortization

(2,821)

(2,586)

234

8.3%

 

(5,315)

Operating Income

23,742

24,865

1,122

4.7%

 

51,100

Figures may differ from those accounted under Argentine GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 13.1

 

 

 

 

 

 

El Chocón

2011

2012

Var 2011-2012

Chg%

 

 

GWh Produced

2,404

2,801

397

16.5%

 

 

GWh Sold

2,888

3,197

309

10.7%

 

 

Market Share

2.5%

2.6%

0.2 pp.

 

 

 

 

 

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YE 2012

Distribution               

Edesur

 

Our distribution subsidiary Edesur, showed a 60.6% drop in operating income, showing for this period losses of Ch$ 54,102 million. The negative evolution of the company results are the consequence of increased operating costs derived from the country’s inflation rate, without the corresponding tariff increases because of the delay in fulfilling certain clauses of the Minutes of Agreement executed with the National Government of Argentina, especially the semi-annual recognition of tariff adjustments incorporated into the Cost Monitoring Mechanism (MMC, in its Spanish acronym) and the implementation of an Integral Tariff Review (RTI, in its Spanish acronym) as provided in such Minutes, all of which is heavily impacting Edesur’s financial balance.

 

 

Operating revenues increased by Ch$ 41,517 million, 14,8% higher compared to last year. This is mainly explained by the increase in energy sales revenues by Ch$ 41,302 million. The latter was offset by a Ch$ 34,825 million increase in energy purchases and a Ch$21,227 increase in other operation fixed costs.

 

Physical sales increased by 2.9% reaching 17,738 GWh. The energy losses in this period were 10.6% and the number of clients remained in 2.4 million.

 

The net effect of translating the financial statements from Argentine pesos to Chilean pesos in both periods led to a 8.6% decrease in Chilean pesos in 2012, when compared to 2011.

 

 

Table 14

 

 

 

 

 

 

Edesur

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

279,725

321,242

41,517

14.8%

 

660,190

Procurement and Services

(141,880)

(175,422)

(33,542)

(23.6%)

 

(360,513)

Contribution Margin

137,845

145,820

7,975

5.8%

 

299,677

Other Costs

(153,578)

(184,213)

(30,634)

(19.9%)

 

(378,579)

Gross Operating Income (EBITDA)

(15,733)

(38,393)

(22,659)

(144.0%)

 

(78,901)

Depreciation and Amortization

(121,437)

(15,710)

105,727

87.1%

 

(32,286)

Operating Income

(137,170)

(54,102)

83,067

60.6%

 

(111,187)

Figures may differ from those accounted under Argentine GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 14.1

 

 

 

 

 

 

Edesur

2011

2012

Var 2011-2012

Chg%

  

 

Customers (Th)

2,389

2,389

0

0.0%

 

 

GWh Sold

17,233

17,738

505

2.9%

 

 

Clients/Employee

838

810

(28)

(3.4%)

 

 

Energy Losses %

10.5%

10.6%

0.1%

 

 

 

 

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 PRESS RELEASE

YE 2012

 

Brazil

Endesa Brasil

Operating Income amounted to Ch$ 480,773 million, 13.4% lower than the Ch$ 555,424 million reported in 2011.

 

Table 15

 

 

 

 

 

 

Endesa Brasil

(Million Ch$)

 

 

(Thousand US$)

 

2011

2012

Var 2011-2012

Chg %

 

2012

Sales

1,973,427

1,968,532

(4,896)

(0.2%)

 

4,045,565

Other operating income

194,395

164,219

(30,176)

(15.5%)

 

337,489

Total Revenues

2,167,822

2,132,750

(35,072)

(1.6%)

 

4,383,054

Procurements and Services

(1,227,078)

(1,261,579)

(34,501)

(2.8%)

 

(2,592,694)

Contribution Margin

940,745

871,171

(69,573)

(7.4%)

 

1,790,360

Other Costs

(253,335)

(246,233)

7,102

2.8%

 

(506,038)

Gross Operating Income (EBITDA)

687,409

624,938

(62,471)

(9.1%)

 

1,284,322

Depreciation and Amortization

(125,087)

(119,521)

5,565

4.4%

 

(245,630)

Reversal of impairment profit (loss) recognized in profit or loss

(6,899)

(24,644)

(17,745)

(257.2%)

 

(50,646)

Operating Income

555,424

480,773

(74,651)

(13.4%)

 

988,046

Net Financial Income

(39,338)

25,137

64,475

163.9%

 

51,659

Financial income

171,883

212,631

40,747

23.7%

 

436,981

Financial expenses

(225,561)

(187,474)

38,088

16.9%

 

(385,281)

Income (Loss) for indexed assets and liabilities

-

-

-

 

 

-

Foreign currency exchange differences, net

14,340

(20)

(14,360)

(100.1%)

 

(41)

Gains

17,950

5,780

(12,170)

(67.8%)

 

11,879

Losses

(3,610)

(5,800)

(2,191)

(60.7%)

 

(11,920)

Net Income from Related Comp. Cons. by the Prop. Eq. Method

-

(0)

(0)

 

 

(0)

Net Income from Other Investments

-

(0)

(0)

 

 

(0)

Net Income from Sales of Assets

-

1,983

1,983

 

 

4,076

Net Income before Taxes

516,086

507,893

(8,193)

(1.6%)

 

1,043,780

Income Tax

(128,503)

(129,497)

(994)

(0.8%)

 

(266,132)

NET INCOME

387,583

378,396

(9,187)

(2.4%)

 

777,648

Net Income Attributable to Owners of the Company

285,159

265,750

(19,409)

(6.8%)

 

546,148

Net Income Attributable to Minority Interest

102,424

112,646

10,222

10.0%

 

231,501

 

Generation

 

In Brazil, the operating income of our subsidiaries amounted to Ch$ 180,744 million, 11.2% lower than in 2011, when operating results amounted to Ch$ 203,493 million.

 

Cachoeira Dourada

 

The operating income of Cachoeira Dourada was Ch$ 105,124 million, 16.4% higher than for 2011 period. This is mainly explained by 22.5% of higher energy sales revenues, reaching Ch$ 155,195 million and 4,345 GWh sold, and higher average sale price of 12.4%. This was partially offset by an increase in energy purchases costs of Ch$ 10,788 million.

 

The effect of converting these financial statements from Brazilian reals to Chilean pesos in both periods was to generate a 13.9% reduction in Chilean pesos in December 2012 when compared to December 2011.

 

 

 

Pg. 31

 
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YE 2012

 

 

Table 16

 

 

 

 

 

 

Cachoeira

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

126,646

155,195

28,549

22.5%

 

318,944

Procurement and Services

(26,356)

(37,918)

(11,562)

(43.9%)

 

(77,926)

Contribution Margin

100,290

117,277

16,987

16.9%

 

241,018

Other Costs

(6,512)

(5,764)

748

11.5%

 

(11,846)

Gross Operating Income (EBITDA)

93,778

111,513

17,735

18.9%

 

229,173

Depreciation and Amortization

(3,497)

(6,389)

(2,892)

(82.7%)

 

(13,131)

Operating Income

90,281

105,124

14,842

16.4%

 

216,041

Figures may differ from those accounted under Brazilian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 16.1

 

 

 

 

 

 

Cachoeira

2011

2012

Var 2011-2012

Chg%

 

 

GWh Produced

3,121

3,722

601

19.3%

 

 

GWh Sold

3,986

4,344

358

9.0%

 

 

Market Share

0.9%

1.0%

0.0 pp.

 

 

 

 

 

Fortaleza (cgtf)

 

The operating income of Endesa Fortaleza (CGTF) amounted to Ch$ 41,872 million, evidencing a 14.9% decrease as compared to the previous year. This is mainly explained by an increase in energy purchases costs of 97.7%, due to a 135.7% increase in average energy purchase price. This was  partially offset by an increase in operating revenues of Ch$ 9,700 million, due to Ch$ 12,056 million increase in energy sales revenues.

 

Physical sales of the period reached 2,947 GWh, 3.7% more than last year.

 

The effect of converting these financial statements from Brazilian reals to Chilean pesos in both periods was to generate a 13.9% reduction in Chilean pesos in December 2012 when compared to December 2011.

 

Table 17

 

 

 

 

 

 

Fortaleza

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

129,485

139,186

9,700

7.5%

 

286,043

Procurement and Services

(65,271)

(81,777)

(16,506)

(25.3%)

 

(168,062)

Contribution Margin

64,215

57,408

(6,806)

(10.6%)

 

117,981

Other Costs

(6,906)

(9,013)

(2,106)

(30.5%)

 

(18,522)

Gross Operating Income (EBITDA)

57,308

48,396

(8,912)

(15.6%)

 

99,459

Depreciation and Amortization

(8,122)

(6,524)

1,598

19.7%

 

(13,408)

Operating Income

49,186

41,872

(7,315)

(14.9%)

 

86,052

Figures may differ from those accounted under Brazilian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 17.1

 

 

 

 

 

 

Fortaleza

2011

2012

Var 2011-2012

Chg%

 

 

GWh Produced

1,033

1,454

421

40.7%

 

 

GWh Sold

2,842

2,947

105

3.7%

 

 

Market Share

0.7%

0.7%

(0.0) pp.

 

 

 

 

 

Pg. 32

 
 PRESS RELEASE

YE 2012

 

 

 

Transmission

CIEN

 

Our transmission subsidiary, CIEN, showed a decrease in operating income of Ch$ 31,841 million, reaching Ch$ 36,940 million. This is explained because 2011 results were positively impacted by a provision reversal for accounts receivable considered not recoverable for Ch$20.936 million and another one, amounting to Ch$27.827 million, corresponding to sales tax that does not apply in 2012.

 

Operating revenues increased by Ch$ 12,605 million, due to the fully registration of toll charges during this year (RAP – Permitted Annual Remuneration) of Ch$ 72,523 million, whereas 2011 figures only include this item since the end of April.

 

The effect of converting these financial statements from Brazilian reals to Chilean pesos in both periods was to generate a 13.9% reduction in Chilean pesos in December 2012 when compared to December 2011.

 

 

Table 18

 

 

 

 

 

 

Cien (*)

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

59,918

72,523

12,605

21.0%

 

149,043

Procurement and Services

34,182

(12,289)

(46,471)

(136.0%)

 

(25,256)

Contribution Margin

94,100

60,234

(33,866)

(36.0%)

 

123,787

Other Costs

(9,252)

(9,226)

26

0.3%

 

(18,960)

Gross Operating Income (EBITDA)

84,849

51,008

(33,841)

(39.9%)

 

104,827

Depreciation and Amortization

(11,181)

(14,068)

(2,887)

(25.8%)

 

(28,911)

Reversal of impairment profit (loss) recognized in profit or loss

(4,887)

-

4,887

(100.0%)

 

-

Operating Income

68,781

36,940

(31,841)

(46.3%)

 

75,916

Figures may differ from those accounted under Brazilian GAAP.

 

 

 

 

 

 

 

Pg. 33

 
 PRESS RELEASE

YE 2012

 

Distribution

 

In Brazil, the operating income of our distribution subsidiaries amounted to Ch$ 304,721 million, which is 14.1% lower than that obtained in the previous year.

 

Ampla

 

Ampla’s operating income amounted to Ch$ 173,716 million, which compared to previous year,  represents a 0.0% variation.  Operating revenues decreased by Ch$43,032 million, mainly due to lower energy sales revenues of Ch$ 20,330 million and lower other revenues of Ch$ 13,341 million. This was offset by Ch$ 50,813 million reduction in procurement and services costs, explained by Ch$ 49,959 lower energy purchases costs.

 

Physical sales grew by 5.8%, reaching 10,816 GWh. Energy losses dropped by 0.1 p.p., going from 19.7% to 19.6%.  The number of Ampla’s clients increased by 69 thousand, thus exceeding 2.7 million clients.

 

The effect of converting these financial statements from Brazilian reals to Chilean pesos in both periods was to generate a 13.9% reduction in Chilean pesos in December 2012 when compared to December 2011.

 

Table 19

 

 

 

 

 

 

Ampla

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

1,117,269

1,074,237

(43,032)

(3.9%)

 

2,207,685

Procurement and Services

(759,227)

(708,414)

50,813

6.7%

 

(1,455,874)

Contribution Margin

358,043

365,823

7,781

2.2%

 

751,810

Other Costs

(125,512)

(115,336)

10,176

8.1%

 

(237,029)

Gross Operating Income (EBITDA)

232,531

250,487

17,956

7.7%

 

514,781

Depreciation and Amortization

(56,424)

(57,535)

(1,111)

(2.0%)

 

(118,241)

Reversal of impairment profit (loss) recognized in profit or loss

(2,449)

(19,236)

(16,787)

(685.3%)

 

(39,533)

Operating Income

173,657

173,716

59

0.0%

 

357,008

Figures may differ from those accounted under Brazilian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 19.1

 

 

 

 

 

 

Ampla

2011

2012

Var 2011-2012

Chg%

 

 

Customers (Th)

2,644

2,712

69

2.6%

 

 

GWh Sold

10,223

10,816

593

5.8%

 

 

Clients/Employee

2,227

2,383

156

7.0%

 

 

Energy Losses %

19.7%

19.6%

(0.0) pp.

 

 

 

 

 

Pg. 34

 
 PRESS RELEASE

YE 2012

 

Coelce

 

Coelce’s operating income decreased by 27.6% reaching Ch$ 131,005 million. This  performance is mostly due to a Ch$ 53,019 million decrease in  operating revenues, mainly due to lower energy sales revenues of Ch$ 38,450 million explained by a 14.9% reduction in average energy sale price. This was partially offset by a Ch$ 12,531 reduction in other procurement and services costs and an increase of 10.1% in physical sales.

 

Physical sales amounted to 9,877 GWh.  Energy losses increased by 0.7 p.p. up to 12.6%.  Coelce’s number of clients expanded by 114 thousand, reaching more than 3.3 million clients.

 

The effect of converting these financial statements from Brazilian reals to Chilean pesos in both periods was to generate a 13.9% reduction in Chilean pesos in December 2012 when compared to December 2011.

 

 

Table 20

 

 

 

 

 

 

Coelce

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

859,446

806,427

(53,019)

(6.2%)

 

1,657,304

Procurement and Services

(537,909)

(539,169)

(1,261)

(0.2%)

 

(1,108,057)

Contribution Margin

321,538

267,258

(54,280)

(16.9%)

 

549,247

Other Costs

(95,477)

(96,170)

(693)

(0.7%)

 

(197,641)

Gross Operating Income (EBITDA)

226,061

171,088

(54,973)

(24.3%)

 

351,606

Depreciation and Amortization

(45,073)

(40,083)

4,989

11.1%

 

(82,375)

Operating Income

180,988

131,005

(49,983)

(27.6%)

 

269,231

Figures may differ from those accounted under Brazilian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 20.1

 

 

 

 

 

 

Coelce

2011

2012

Var 2011-2012

Chg%

 

 

Customers (Th)

3,224

3,338

114

3.5%

 

 

GWh Sold

8,970

9,878

908

10.1%

 

 

Clients/Employee

2,463

2,683

220

8.9%

 

 

Energy Losses %

11.9%

12.6%

0.7 pp.

 

 

 

 

 

Pg. 35

 
 PRESS RELEASE

YE 2012

 

Chile


 

Generation

Endesa Chile

 

Consolidated Income Statement of Endesa Chile

 

Table 21

 

 

 

 

 

 

Endesa Chile

(Million Ch$)

 

 

(Thousand US$)

 

2011

2012

Var 2011-2012

Chg %

 

2012

Sales

2,387,451

2,301,821

(85,630)

(3.6%)

 

4,730,515

Other operating income

17,039

67,565

50,526

296.5%

 

138,854

Total Revenues

2,404,490

2,369,386

(35,104)

(1.5%)

 

4,869,369

Procurements and Services

(1,217,260)

(1,328,703)

(111,443)

(9.2%)

 

(2,730,641)

Contribution Margin

1,187,230

1,040,684

(146,547)

(12.3%)

 

2,138,728

Other Costs

(213,340)

(206,834)

6,506

3.0%

 

(425,068)

Gross Operating Income (EBITDA)

973,890

833,850

(140,041)

(14.4%)

 

1,713,659

Depreciation and Amortization

(176,447)

(190,523)

(14,076)

(8.0%)

 

(391,547)

Reversal of impairment profit (loss) recognized in profit or loss

(9,473)

(11,117)

(1,645)

(17.4%)

 

(22,847)

Operating Income

787,971

632,209

(155,761)

(19.8%)

 

1,299,265

Net Financial Income

(121,295)

(146,034)

(24,738)

(20.4%)

 

(300,116)

Financial income

28,039

14,922

(13,117)

(46.8%)

 

30,667

Financial expenses

(137,535)

(149,225)

(11,690)

(8.5%)

 

(306,675)

Income (Loss) for indexed assets and liabilities

(5,333)

(991)

4,342

81.4%

 

(2,037)

Foreign currency exchange differences, net

(6,467)

(10,740)

(4,273)

(66.1%)

 

(22,072)

Gains

21,212

16,346

(4,867)

(22.9%)

 

33,593

Losses

(27,679)

(27,086)

593

2.1%

 

(55,664)

Net Income from Related Comp. Cons. by the Prop. Eq. Method

123,033

116,945

(6,088)

(4.9%)

 

240,336

Net Income from Other Investments

1,038

657

(381)

(36.7%)

 

1,351

Net Income from Sales of Assets

973

735

(237)

(24.4%)

 

1,511

Net Income before Taxes

791,719

604,513

(187,206)

(23.6%)

 

1,242,346

Income Tax

(210,565)

(185,470)

25,094

11.9%

 

(381,163)

NET INCOME

581,155

419,043

(162,112)

(27.9%)

 

861,182

Net Income Attributable to Owners of the Company

446,874

234,335

(212,539)

(47.6%)

 

481,587

Net Income Attributable to Minority Interest

134,281

184,708

50,427

37.6%

 

379,596

*Includes generation subsidiaries in Chile, Argentina, Colombia and Peru.

 

Chilean Operations

 

Lower revenues of Ch$ 101,877 million during 2012 were primarily due to a 11.9% reduction in average energy sales price as a result of reduced contracts indexing to marginal cost in Chile, coupled with the absence of RM88 revenues (Ch$ 68,340 million in 2011). Additionally, physical energy sales decreased by 3.6% as a result of Gasatacama contracts end and reduced water availability.

 

In addition, there were higher fuel costs of Ch$ 53,099 million due primarily to increased LNG generation, coupled with higher transportation costs of Ch$ 31,731 million explained by higher toll costs related to the drought in the central-south zone of the country. Energy purchases costs increased by Ch$ 11,349 million due to higher energy purchase prices in the spot market.

 

Since this, operating income decreased by 55.9%, totaling Ch$ 175,752 million, while EBITDA of the business in Chile reached Ch$ 284,301 million in 2012, representing a decrease of 41.6% compared to the previous year.

 

 

 

 

Pg. 36

 
 PRESS RELEASE

YE 2012

 

 

Table 22

 

 

 

 

 

 

Chilean Electricity Business

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

1,257,995

1,156,118

(101,877)

(8.1%)

 

2,375,959

Procurement and Services

(679,799)

(764,220)

(84,422)

(12.4%)

 

(1,570,563)

Contribution Margin

578,197

391,898

(186,299)

(32.2%)

 

805,396

Other Costs

(91,237)

(107,596)

(16,359)

(17.9%)

 

(221,123)

Gross Operating Income (EBITDA)

486,959

284,301

(202,658)

(41.6%)

 

584,273

Depreciation and Amortization

(88,155)

(108,549)

(20,394)

(23.1%)

 

(223,082)

Operating Income

398,804

175,752

(223,052)

(55.9%)

 

361,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 22.1

 

 

 

 

 

 

Chilean Electricity Business

2011

2012

Var 2011-2012

Chg%

 

 

GWh Produced

20,722

20,194

(527)

(2.5%)

 

 

GWh Sold

22,070

21,277

(793)

(3.6%)

 

 

Market Share

38.0%

34.8%

(3.2) pp.

 

 

 

 

 

 

 

Pg. 37

 
 PRESS RELEASE

YE 2012

 

Distribution

Chilectra

 

In Chile, our subsidiary Chilectra showed an operating income of Ch$ 133,375 million, which represents an increase of 11.4% when compared to 2011.  This better performance is mainly due to a better margin in energy sales of Ch$ 14,401 million, due to a reduction of Ch$ 85,415 million in energy purchases cost.. The above was partially offset by a decrease in operating revenues of Ch$ 61,453 million, a 5.9% less than in 2011, which is explained by a 8.2% decrease in energy sales revenues.

 

Energy losses were 5.5%, the same as in 2011. Physical energy sales increased by 5.6%, reaching 14,445 GWh.

 

The number of clients expanded by 21 thousand clients, reaching more than 1.65 million during the present period.

 

 

Table 23

 

 

 

 

 

 

Chilectra

(Million Ch$)

 

 

(Thousand US$)

 

2011

2012

Var 2011-2012

Chg %

 

2012

Sales

1,035,360

974,543

(60,817)

(5.9%)

 

2,002,801

Other operating income

10,831

10,195

(635)

(5.9%)

 

20,953

Total Revenues

1,046,191

984,738

(61,453)

(5.9%)

 

2,023,754

Procurements and Services

(803,854)

(728,001)

75,854

9.4%

 

(1,496,128)

Contribution Margin

242,337

256,738

14,401

5.9%

 

527,626

Other Costs

(87,869)

(89,515)

(1,646)

(1.9%)

 

(183,965)

Gross Operating Income (EBITDA)

154,468

167,222

12,755

8.3%

 

343,662

Depreciation and Amortization

(25,533)

(27,216)

(1,683)

(6.6%)

 

(55,932)

Reversal of impairment profit (loss) recognized in profit or loss

(9,250)

(6,631)

2,619

28.3%

 

(13,628)

Operating Income

119,685

133,375

13,690

11.4%

 

274,101

Net Financial Income

10,648

9,224

(1,424)

(13.4%)

 

18,956

Financial income

15,874

10,291

(5,583)

(35.2%)

 

21,150

Financial expenses

(4,383)

(2,281)

2,102

48.0%

 

(4,688)

Income (Loss) for indexed assets and liabilities

42

1,205

1,163

2764.4%

 

2,476

Foreign currency exchange differences, net

(885)

9

893

101.0%

 

18

Gains

798

746

(53)

(6.6%)

 

1,532

Losses

(1,683)

(737)

946

56.2%

 

(1,514)

Net Income from Related Comp. Cons. by the Prop. Eq. Method

14,077

58,069

43,991

312.5%

 

119,338

Net Income from Other Investments

-

-

-

 

 

-

Net Income from Sales of Assets

(4)

(173)

(169)

(3924.9%)

 

(356)

Net Income before Taxes

144,406

200,494

56,088

38.8%

 

412,039

Income Tax

(33,615)

(24,733)

8,882

26.4%

 

(50,829)

NET INCOME

110,791

175,761

64,970

58.6%

 

361,210

Net Income Attributable to Owners of the Company

110,791

175,761

64,970

58.6%

 

361,209

Net Income Attributable to Minority Interest

-

-

-

-

 

-

Table 23.1

 

 

 

 

    

Chilectra

2011

2012

Var 2011-2012

Chg%

    

Customers (Th)

1,638

1,659

21

1.3%

    

GWh Sold

13,697

14,445

748

5.5%

    

Clients/Employee

2,301

2,261

(40)

(1.7%)

    

Energy Losses %

5.5%

5.4%

(0.1) pp.

 

    

 

 

Pg. 38

 
 PRESS RELEASE

YE 2012

 

Colombia

 

Generation

 

Emgesa 

 

The operating income of our generation subsidiary in Colombia amounted to Ch$ 337,661 million in this period, increasing by Ch$ 84,153 million or by the equivalent of 29.4% compared to 2011. The main effect comes from the impact of the one-time effect of the Equity Tax, which entailed registering –on January 1, 2011- the total amount payable under this concept during the entire 2011-2014 periods.

 

Operating revenues also showed a good performance, reaching Ch$ 580,151 million, a 16.4% increase compared to 2011, mainly explained by a 16.8% increase in energy sales revenues. This was partially offset by a Ch$ 36,205 million increase in procurement and services costs, 26.8% higher than 2011, mainly due to higher energy purchases of Ch$ 19,705 million and higher fuel consumption of Ch$ 12,269 million, representing a 66.8% and 51.2% increase respectively compared to last year.

 

Physical energy sales grew by 7.9% reaching 16,304 GWh and EBITDA in Emgesa grew by 29.4% in the period, reaching Ch$ 376,127 million.

 

The net effect of translating the financial statements from Colombian pesos to Chilean pesos in both periods was positive, resulting in a 3.4% increase in Chilean pesos in 2012, when compared to 2011.

 

Table 24

 

 

 

 

 

 

Emgesa

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

498,569

580,151

81,582

16.4%

 

1,192,279

Procurement and Services

(134,978)

(171,183)

(36,205)

(26.8%)

 

(351,801)

Contribution Margin

363,591

408,968

45,377

12.5%

 

840,478

Other Costs

(72,819)

(32,841)

39,977

54.9%

 

(67,493)

Gross Operating Income (EBITDA)

290,773

376,127

85,355

29.4%

 

772,986

Depreciation and Amortization

(37,264)

(38,466)

(1,202)

(3.2%)

 

(79,053)

Operating Income

253,508

337,661

84,153

33.2%

 

693,933

Figures may differ from those accounted under Colombian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 24.1

 

 

 

 

 

 

Emgesa

2011

2012

Var 2011-2012

Chg%

 

 

GWh Produced

12,090

13,294

1,204

10.0%

 

 

GWh Sold

15,112

16,304

1,193

7.9%

 

 

Market Share

18.8%

19.2%

0.4 pp.

 

 

 

 

 

Pg. 39

 
 PRESS RELEASE

YE 2012

 

Distribution

 

Codensa

 

In Colombia, Codensa’s operating income during this period was Ch$ 245,180 million, an increase of Ch$ 59,718 million, equivalent to 25.7%. The main effect arose from the impact of the reform on Equity Taxes, which entailed registering –on January 1, 2011- the total amount payable under this concept during the entire 2011-2014 period. Additionally, during the period operating revenues increased 9.0%, reaching Ch$ 888,586 million, explained by Ch$ 59,751 million higher energy sales revenues, a 8.8% increase compared to 2011.

 

The latter was partially offset by higher procurement and service costs, mainly explained by a Ch$ 23,113 million increase in energy purchases costs, equivalent to 6.8%.

 

Physical sales grew by 3.9%, reaching 13,364 GWh in the period. Energy losses dropped by 0.6 p.p. to 7.5% and the number of clients increased by 96 thousand, exceeding 2.7 million.

  

The net effect of translating the financial statements from Colombian pesos to Chilean pesos in both periods was positive, resulting in a 3.4% increase in Chilean pesos in 2012, when compared to 2011.

 

Table 25

 

 

 

 

 

 

Codensa

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

815,487

888,586

73,100

9.0%

 

1,826,150

Procurement and Services

(451,192)

(480,431)

(29,240)

(6.5%)

 

(987,343)

Contribution Margin

364,295

408,155

43,860

12.0%

 

838,807

Other Costs

(114,377)

(94,062)

20,314

17.8%

 

(193,309)

Gross Operating Income (EBITDA)

249,918

314,093

64,174

25.7%

 

645,498

Depreciation and Amortization

(64,456)

(68,913)

(4,457)

(6.9%)

 

(141,624)

Operating Income

185,462

245,180

59,718

32.2%

 

503,874

Figures may differ from those accounted under Colombian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 25.1

 

 

 

 

 

 

Codensa

2011

2012

Var 2011-2012

Chg%

  

 

Customers (Th)

2,617

2,713

96

3.7%

 

 

GWh Sold

12,857

13,364

507

3.9%

 

 

Clients/Employee

2,377

2,407

30

1.3%

 

 

Energy Losses %

8.1%

7.5%

(0.6) pp.

 

 

 

 

Pg. 40

 
 PRESS RELEASE

YE 2012

 

Peru

 

Generation

Edegel

 

In Peru, the operating income of our generation subsidiary amounted to Ch$ 101,053 million in this period, a 3.4% decrease when compared to that registered in 2011. This lower result is explained mainly by an increase in payroll expenses of Ch$15,387 million, due to a provision reversion made on June 2011 which caused a positive result of Ch$ 2,657 million in payroll expenses in 2011 period, compared to the negative result of Ch$ 12,729 million in this period. The provision reversion was due to the transition to IFRS.

 

Operating revenues showed a 17.6% growth compared to 2011, mainly due to a Ch$ 39,630 million increase in energy sales. This was partially offset by higher energy purchases of Ch$ 14,743 million and higher fuel consumption of Ch$ 6,107 million, which represents 106.7% and 12.4% increases respectively.

 

Physical sales grew by 1.5% reaching 9,587 GWh. EBITDA of the business in Edegel amounted to Ch$ 139,991 million in this period, representing a decrease of 1.0% when comparing it to last year.

 

The net effect of translating the financial statements from Peruvian sol to Chilean peso in both periods resulted in a 5.0% increase in Chilean pesos in 2012, when compared to 2011.

 

Table 26

 

 

 

 

 

 

Edegel

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

239,841

282,124

42,283

17.6%

 

579,799

Procurement and Services

(86,884)

(111,095)

(24,211)

(27.9%)

 

(228,313)

Contribution Margin

152,957

171,029

18,072

11.8%

 

351,486

Other Costs

(11,578)

(31,038)

(19,460)

(168.1%)

 

(63,787)

Gross Operating Income (EBITDA)

141,379

139,991

(1,388)

(1.0%)

 

287,699

Depreciation and Amortization

(36,724)

(38,939)

(2,214)

(6.0%)

 

(80,024)

Operating Income

104,655

101,053

(3,602)

(3.4%)

 

207,675

Figures may differ from those accounted under Peruvian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 26.1

 

 

 

 

 

 

Edegel

2011

2012

Var 2011-2012

Chg%

 

 

GWh Produced

9,153

8,740

(413)

(4.5%)

 

 

GWh Sold

9,450

9,587

138

1.5%

 

 

Market Share

29.7%

28.5%

(1.2) pp.

 

 

 

 

 

 

Pg. 41

 
 PRESS RELEASE

YE 2012

 

Distribution

Edelnor

 

Our subsidiary Edelnor showed an operating income of Ch$ 70,069 million, 0.2% lower than in 2011. Just as in the case of Edegel, this is mainly explained by an increase in payroll expenses, due to a provision reversion made on June 2011, making payroll expenses to pass from Ch$ 9,745 million in  2011, to Ch$ 18,344 million in this period, which is an increase of 88.2%.

 

 

Operating revenues showed a 16.9% growth compared to 2011, mainly due to a Ch$ 51,231 million increase in energy sales. This was partially offset by higher energy purchases of Ch$ 40,015 million.

 

Energy losses remained the same as in 2011, reaching 8.2% in the current year. The number of clients expanded by 59 thousand, exceeding 1.2 million clients.

 

The net effect of translating the financial statements from Peruvian sol to Chilean peso in both periods resulted in a 5.0% increase in Chilean pesos in 2012, when compared to 2011.

.

Table 27

 

 

 

 

 

 

Edelnor

Million Ch$

 

 

Thousand US$

 

2011

2012

Var 2011-2012

Chg%

 

2012

Operating Revenues

329,309

385,013

55,704

16.9%

 

791,248

Procurement and Services

(210,905)

(252,013)

(41,109)

(19.5%)

 

(517,918)

Contribution Margin

118,404

133,000

14,596

12.3%

 

273,331

Other Costs

(26,052)

(38,105)

(12,053)

(46.3%)

 

(78,311)

Gross Operating Income (EBITDA)

92,352

94,895

2,542

2.8%

 

195,020

Depreciation and Amortization

(22,453)

(24,826)

(2,373)

(10.6%)

 

(51,020)

Operating Income

69,900

70,069

169

0.2%

 

143,999

Figures may differ from those accounted under Peruvian GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

Table 27.1

 

 

 

 

 

 

Edelnor

2011

2012

Var 2011-2012

Chg%

  

 

Customers (Th)

1,144

1,203

59

5.2%

 

 

GWh Sold

6,572

6,863

291

4.4%

 

 

Clients/Employee

2,080

1,982

(98)

(4.7%)

 

 

Energy Losses %

8.2%

8.2%

0.0 pp.

 

 

 

 

 

Pg. 42

 
 PRESS RELEASE

YE 2012

 

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 period ended in December 31, 2011 and December 31, 2012, detailed as follows:

 

Table 28

 

 

 

 

 

 

  

Table 28.1

 

 

 

 

2011

2012

    

2012

Million Ch$

Operating Revenues

Operating Costs

Operating Income

Operating Revenues

Operating Costs

Operating Income

  

Thousand US$

Operating Revenues

Operating Costs

Operating Income

Endesa Chile (*)

2,404,490

(1,616,520)

787,970

2,369,386

(1,737,177)

632,209

 

Endesa Chile (*)

4,869,368

(3,570,104)

1,299,264

Cachoeira (**)

126,646

(36,365)

90,281

155,195

(50,071)

105,124

 

Cachoeira (**)

318,944

(102,902)

216,042

Fortaleza (***)

129,485

(80,299)

49,186

139,186

(97,314)

41,872

 

Fortaleza (***)

286,044

(199,992)

86,052

Cien (**)

59,918

8,863

68,781

72,523

(35,583)

36,940

 

Cien (**)

149,043

(73,127)

75,916

Chilectra

1,046,191

(926,506)

119,685

984,738

(851,363)

133,375

 

Chilectra

2,023,753

(1,749,652)

274,101

Edesur

279,725

(416,895)

(137,170)

321,242

(375,344)

(54,102)

  

Edesur

660,190

(771,376)

(111,186)

Distrilima (Edelnor)

329,309

(259,409)

69,900

385,013

(314,944)

70,069

 

Distrilima (Edelnor)

791,247

(647,247)

144,000

Ampla

1,117,269

(943,612)

173,657

1,074,237

(900,521)

173,716

 

Ampla

2,207,684

(1,850,677)

357,007

Coelce

859,446

(678,458)

180,988

806,427

(675,422)

131,005

 

Investluz (Coelce)

1,657,303

(1,388,072)

269,231

Codensa

815,487

(630,025)

185,462

888,586

(643,402)

245,184

 

Codensa

1,826,149

(1,322,267)

503,882

CAM Ltda.

15,739

(17,179)

(1,440)

-

-

-

 

CAM Ltda.

-

-

-

Inmobiliaria Manso de Velasco Ltda.

8,099  

(2,396)

5,703

17,039

(3,952)

13,087

 

Inmobiliaria Manso de Velasco Ltda.

35,017  

(8,122)

26,895

Synapsis Soluciones y Servicios IT Ltda.

6,693

(6,556)

137

-

-

-

 

Synapsis Soluciones y Servicios IT Ltda.

-

-

-

ICT

6,120

(5,159)

961

6,205

(5,887)

318

 

ICT

12,752

(12,098)

654

Enersis Holding and other investment vehicles

39,260

(58,717)

(19,457)

39,906

(63,886)

(23,980)

  

Enersis Holding and other investment vehicles

82,012

(131,293)

(49,282)

Consolidation Adjustments

(708,997)

700,664

(8,333)

(682,016)

674,164

(7,852)

  

Consolidation Adjustments

(1,401,624)

1,385,487

(16,137)

Total Consolidation

6,534,880

(4,968,569)

1,566,311

6,577,667

(5,080,702)

1,496,965

 

Total Consolidation

13,517,884

(10,441,444)

3,076,440

 

(*) Since January 1st, 2009, includes Gas Atacama, Transquillota and 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. 43

 
 PRESS RELEASE

YE 2012

 

Market Information

 

Equity Market

New York Stock Exchange (NYSE)

 

The charts below show the performance of Enersis’ ADS (“ENI”) price at the NYSE, compared to the Dow Jones Industrials and the Dow Jones Utilities indexes over the last 12 months, as well as the trading volume, both in the NYSE.

 

Source: Bloomberg

 

 

 

Pg. 44

 
 PRESS RELEASE

YE 2012

 

Santiago Stock Exchange (BCS)

 

The charts below show the performance of Enersis’ Chilean stock price over the last 12 months compared to the Chilean Selective Stock Index (IPSA), as well as the daily average aggregate trading volume in the Santiago and Chilean Electronic Stock Exchanges:

 

Source: Bloomberg

 

 

 

Pg. 45

 
 PRESS RELEASE

YE 2012

 

Madrid Stock Exchange (Latibex) - Spain

 

The charts below show Enersis’ share price (“XENI”) at the Latibex over the last 12 months compared to the local stock index (IBEX), as well as the daily average trading volume in the Latibex.

 

 

 

 

 

Source: Bloomberg Debt Market

 

 

 

Pg. 46

 
 PRESS RELEASE

YE 2012

 

 

Yankee Bonds Price Evolution

 

The following chart shows the pricing of two of our Yankee Bonds over the last 12 months compared to the Ishares Iboxx Investment Grade Corporate Bond Fund Index:

 

Source: Bloomberg

 

(*) Ishares Iboxx Investment Grade Corporate Bond Fund Index 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.

 

 

  

 

 

 

Pg. 47

 
 PRESS RELEASE

YE 2012

 

Ownership of the Company as of December 31, 2012

 

TOTAL SHAREHOLDERS: 7,339

 

 

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 31st, 2013, at 10:00 am ET (12:00 pm Local Chile Time). There will be a question and answer session following management's comments. Representing Enersis will be Mr. Eduardo Escaffi, Chief Financial Officer and the Investor Relations Team.

 

To participate, please dial +1 (617) 213 4852 or +1 (888) 680 0860 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 87263244.

 

 

To access the phone replay, please dial +1 (617) 801 6888 (International)  or +1 (888) 286 8010 (toll free USA) Passcode ID: 97166483.

 

You can also access to the conference call replay through our Investor Relations website at http://www.enersis.cl.

 

 

 

Pg. 48

 
 PRESS RELEASE

YE 2012

 

Contact Information

 

For further information, please contact us:

 

Ricardo Alvial

Investments and Risks Director

mlmr@enersis.cl

(56-2) 2353 4682

Denisse Labarca

Head of Investor Relations 

denisse.labarca@enersis.cl

(56-2) 2353 4576

Melissa Vargas

Investor Relations Associate

emvb@enersis.cl

(56-2) 2353 4555

Javier Hernández

Investor Relations Associate

jaha@enersis.cl

(56-2) 2353 4492

 

 

Jorge Velis

Investor Relations Associate

jgve@enersis.cl

(56-2) 2353 4552

Carmen Poblete

Shares Department Representative

cpt@enersis.cl

(56-2) 2353 4447

 

Maria Luz Muñoz

Investor Relations Assistant

mlmr@enersis.cl

(56-2) 2353 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. 49

 

 

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 Alvear  
  -------------------------------------------------- 
   
  Title: Chief Executive Officer 

Date: January 30, 2013