More annual reports from Enel Americas:
2021 ReportPeers and competitors of Enel Americas:
Centrais Electricas Brasileiras S.A.- Eletrobras Table of Contents
Letter from the Chairman of the Board
Description of Enersis
Identification of the Company
Articles of Incorporation and By-laws
Historical Overview
Corporate Purpose
Growth and Development Strategy
Investments and Divestments made during 2000
Prospects for the year 2001
Investment and Financing Policy for the year 2001
Ownership of the Company
Risk Classification
Dividend Policy for the year 2001
Board of Directors
Organizational Structure
Management of the Company
Management of Subsidiaries
Human Resources
Corporate Structure
Subsidiaries
Generation
Endesa - Chile
Distribution
Chilectra - Chile
Río Maipo - Chile
Edesur - Argentina
Edelnor - Perú
Cerj - Brazil
Coelce - Brazil
Codensa - Colombia
Other Businesses
CAM
Synapsis
Diprel
Manso de Velasco
Execution of the Annual Report Herein
2
5
9
12
14
17
18
20
24
26
28
32
34
36
38
40
42
44
46
48
50
52
54
56
58
Identification of Subsidiaries and Related Companies
Enersis’ Consolidated Financial Statements
Enersis’ Unconsolidated Financial Statements
Subsidiaries’ Financial Statements
59
63
161
205
1
Letter from the Chairman of the Board
To our Shareholders:
If one adds to the aforementioned amounts the US$562
I am pleased to submit the 2000 Annual Report on the
management and operations of the Enersis Group for
your consideration. Before starting this brief summary of
the major activities that took place in 2000, I would like
to thank all our shareholders who participated in the first
portion of our capital increase. We appreciate the trust
million invested in the capital expenditures of our
subsidiaries so as to allow for their natural growth, we
reach an aggregate amount of approximately US$1.25
billion, which is the largest investment carried out
by any Chilean industrial group during 2000, thereby
corroborating the trust that we have in our business, the
region and in the medium and long-term development
that you deposited in the Company, in its businesses
and in our management. The account below will show
prospects.
you that you made the correct decision in reinvesting in
Enersis. Suffice it to say that we turned around a loss
of US$143 million in 1999 into a US$157 million profit
in 2000.
The year just ended could be described as one of
adjustment and intense preparation by the Group in
order to allow us to meet the new challenges posed
by a global business environment characterized by
fast change. In fact, 2000 may be identified with the
explosive growth of the “.com” companies and the
subsequent outburst of investment options in
high-tech virtual corporations of whirling yet
precarious capitalization.
This large investment has been carried out on the basis
of very stable and certain growth, such as that sustained
by the demand for electricity above and beyond the
growth of the economy. In fact, during 2000, while the
GDP of the five countries in which we operate grew by
an average of 3.1%, energy sales increased by 5.1%
and energy produced by 5.7%. This example was not
a mere chance outcome last year. When reviewing
a thirty-year period in the region, we observe that
the energy demand normally grows between two and
three percentage points above the variation of economic
growth. In fact, demand for electricity grows even during
recessive cycles.
Nevertheless, Enersis, with a clear understanding of
In addition to the rather inelastic residential or personal
its core business, decided to increase its equity share
consumption, we have to take into account the
in energy distribution subsidiaries, as an unequivocal
emergence of new industries, growing commercial
indication of expected growth. During the year, the
activity and the expansion of utility services, which
following investments were carried out: US$364 million
certainly represent a new source of electricity demand
to increase our equity share in Chilectra, US$150
that has to be satisfied on a timely and reliable basis.
million in the acquisition of a 10% equity stake of
our Argentinean subsidiary Edesur, equity interest that
This growth in demand, combined with the fact that,
workers had since the company was privatized; US$132
to a large degree, there is no substitute for electricity,
million in the acquisition of an additional stake of
presents us not only with the benefits of an industry
our Brazilian subsidiary, Cerj; and US$23 million to
experiencing constant growth, but also poses important
purchase an incremental 15% equity share in our Chilean
challenges. For example, it is not possible to plan for
subsidiary, Río Maipo.
ever increasing distribution of electricity if the generation
3
3
/
2
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
capacity does not grow in tandem. In this sense, the
goes “if it is not mentioned, it is forgotten.” This is an
incentives that generation companies are given in
issue about which we are greatly concerned; namely,
order for them to meet this growing demand are of vital
neither in Chile nor in any of the countries where we
importance. Taking into account the long-term horizon
operate should there exist a threat of an energy deficit.
that is needed for power generation and the capital-
It is indispensable to have a generation capacity that is
intensive investments made in this business, the signals
suitable, reliable and stable over time.
that drive such decisions must also be long-term,
sustainable and consistent.
Of course, as in any market, this one requires some
minimum price balance between demand and supply.
An interference on behalf of one end of the chain, to
the detriment of the other, could result in regrettable
consequences, such as those recently occurred in
California, where impacts are still difficult to assess.
Such events not only directly concern the companies
involved and the related financial system, but they also
have an impact on consumers. The lessons that may
be learned from this crisis should serve to work out
the significant unsolved regulatory problem; namely, the
acceptance of market rules at the beginning of the chain,
and yet the price interference at its end.
On the other hand, we are still confident that the
region’s authorities will continue to act in accordance
with essentially technical grounds in order to have
companies always provide an ever improving quality
Alfredo Llorente
Enersis’ Chairman
of service at reasonable prices, for which economic
On the other hand, and in order to meet both the
rationality becomes an objective factor for analysis and
domestic and cross-border energy requirements in
fundamental understanding.
a practical way, electric interconnections within and
between countries have prevailed as a result of the
We are aware of the true interest to support the current
energy unbalances that are evidenced within the
and expected levels of development in each of the
region. This is a great opportunity for Enersis, and
countries where we operate. Toward that end, it is not
we will certainly not miss it. Thus, during 1999, for
only essential to expect good will; it is also critical to
example, we started our electric interconnection project
be able to count on the energy necessary to enable the
between Argentina and Brazil, of which the first of two
larger industrial, mining, commercial, public works and
lines has been fully operational since June, 2000. In
city development projects.
the meantime, the activities for the construction of
the second line, with a transportation capacity of an
I wish to stress this point because it is of the greatest
additional 1,000 MW, similar to the first one, have
importance to keep in mind an element which is,
already started so as to enable the energy exchange
because self-evident, often not articulated. As the saying
between these two countries.
3
3
/
2
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Another key element in performing our activities
I wanted to share with you what seems to me to have
is a financial situation that is well managed and
been an exceptionally good year, one that signals the
increasingly more solid. Within such context, important
return to our historic profitability levels, and which we
operations were carried out during 2000. These may
will undoubtedly improve. The task has certainly not
be summarized as follows: the Company’s equity
been easy. As most large-scale projects, we have
increased by US$520 million. Furthermore, proceeds of
encountered great obstacles along the way, but we
US$1.4 billion were received as a result of the sale of
have persevered in overcoming them for the benefit of
our subsidiaries Transelec, Esval, Aguas Cordillera and
our shareholders. Burdens of considerable magnitude
some real estate investments, within the strategic scope
become much lighter when they are addressed by a
provided for in the Genesis Project. In this manner,
first-rate team such as the one we have in Enersis.
US$1.6 billion were applied toward the prepayment of
outstanding debt, and the remaining US$300 million,
The challenge for 2001 will be to achieve similar
together with our internally generated cash, were
profitability levels, but shifting the burden instead toward
allocated to finance the US$1.25 billion acquisitions and
operating income, and continuing to advance on the
capital investments mentioned before.
growth path initiated in the second half of 2000. This is
our commitment.
Within this framework, Enersis also rescheduled debt
of over US$4.6 billion under quite favorable conditions,
thereby relieving the pressure on short-term obligations,
and strengthening the company’s capital structure.
The resulting lower leverage will have a positive impact
Sincerely yours,
on Enersis’ 2001 financial statements since the interest
expense associated with the lower debt levels will
drop substantially. In addition, the company’s financial
position is strengthened and is thereby reflected in better
coverage and liquidity ratios. These considerations are
fundamental for maintaining the Group’s investment
grade credit ratings, and as such, allow us to tap the
markets with the flexibility required for future investment
alternatives.
Alfredo Llorente
Chairman of the Board
5
5
/
4
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Description of Enersis
ARTICLES OF INCORPORATION AND BY-LAWS
HISTORICAL OVERVIEW
The company was originally organized as Compañía
On June 19, 1981, the Compañía Chilena de Electricidad
Chilena Metropolitana de Distribución Eléctrica S.A., as
S.A. was restructured in a parent company and three
recorded in public deed of June 19, 1981, executed
subsidiaries, one of which was Compañía Chilena
before Patricio Zaldívar, Notary Public in the city of
Metropolitana de Distribución Eléctrica S.A.
Santiago and amended by notary deed of July 13 the
same year.
In 1985, as result of the privatization policy enacted by the
Government of Chile, the transfer of the capital stock of
The existence of the Company was authorized and its
Compañía Chilena Metropolitana de Distribución Eléctrica
by-laws were approved pursuant to resolution N° 409-S of
S.A. to the private sector began. This process was
July 17, 1981, issued by the Superintendency of Securities
completed on August 10, 1987. Through this process,
and Insurance. The abstract of such authorization and its
private pension funds (A.F.P.), the company’s workers,
approval was recorded in the Official Commerce Register
of Santiago, on page 13,099 No 7,629 of the year 1981,
and published in the Official Gazette on July 23, 1981.
institutional investors and thousands of small investors
became stockholders of the Company.
The organizational structure was based on operating
To date, the by-laws were subsequently amended. The
activities or functions in which attainments were evaluated
existence of the company under the current name of
on a functional basis and profitability was limited by a tariff
Enersis S.A. dates back to August 1, 1988. The latest
mechanism originating from the exclusive involvement of
of such amendment is acknowledged in public deed of
the Company in the business of electricity distribution.
May 26, 1999, executed before Patricio Zaldívar. The
In 1987, the Board of Directors proposed a division of
abstract was recorded in the Official Commerce Register
the different activities of the parent company. Thus, four
of Santiago on page 12,533, No 10,005 and published in
subsidiaries were formed that made it possible to manage
the Official Gazette on June 8, 1999.
them as business units with objectives of their own,
thereby expanding the activities of the company to other
non-regulated businesses, though still related to the main
scope of business.
IDENTIFICATION OF THE COMPANY
Name
ENERSIS S.A.
Type of company
Limited Liability
Stock Company
Tax register number
94.271.000 - 3
Address
Avda. Kennedy N° 5454
Vitacura, Santiago
Telephone
(56-2) 353 4400
Fax
(56-2) 378 4768
P.O. Box
1557 Santiago
Web site
www.enersis.com
E-mail
comunicacion@e.enersis.cl
Securities register number
Nº 175
External auditors
Arthur Andersen -
Langton Clarke
Subscribed and paid-in capital
(ThCh$) 707,398,979
Chilean Stock Exchange
ticker symbol
ENERSIS
New York Stock Exchange
ticker symbol
ENI
Custodian bank
Banco de Chile
Depositary bank
Citibank N.A.
Investor relations office
in New York
Citigate Dewe Rogerson
National risk rating companies
Feller Rate - Fitch Chile
International risk rating companies
Fitch - Moody’s -
Standard & Poor’s
5
5
/
4
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
This proposal was approved by the Extraordinary
Chilectra S.A., a company engaged in electric energy
Shareholders’ Meeting held on November 25, 1987,
distribution in the Metropolitan Region and abroad.
which established its new corporate purpose.
As a result, Compañía Chilena Metropolitana de
serves the distribution needs of, and sells snergy in the
Compañía Eléctrica del Río Maipo S.A. that currently
Distribución Eléctrica S.A. became an investment
areas mentioned earlier.
company. On August 1, 1988, by virtue of the resolution
adopted by the Shareholders’ Meeting held on April12,
Synapsis S.A., a company involved in the provision of
1988, the Company changed its corporate name to
data processing and engineering services and equipment.
Enersis S.A.
Compañía Americana de Multiservicios S.A. (CAM),
Furthermore, with view to provide enhanced customer
engaged in the provision of engineering services, metering
service, as of June 1, 1989, it was approved the division
technology and market trend.
of subsidiary Distribuidora Chilectra Metropolitana S.A.
into a successor company that retained the corporate
Inmobiliaria Manso de Velasco S.A., implements real
name, and a new company incorporated under the name
estate development projects.
of Compañía Eléctrica del Río Maipo S.A., that currently
serves the electric energy distribution needs of the rural
Distribuidora de Productos Eléctricos S.A. (Diprel), the
and semiurban areas of Chile’s Metropolitan Region.
purpose of which is to act as purchasing agent, importer
and exporter, as well as trader and supplier of materials
The Extraordinary Shareholders’ Meeting held on April
for the subsidiary companies of Enersis and third parties.
27, 1994 approved changing the corporate name of
subsidiary Distribuidora Chilectra Metropolitana S.A. to
INTERNATIONAL EXPANSION
that of Chilectra S.A., effective as from June 1, 1994.
In Chile, Enersis is the majority shareholder in the following
process of expansion to other countries in the region.
Concurrently, during the year 1992, Enersis began its
subsidiaries:
Thus in July 1992, Edesur, that distributes electric
energy in the city of Buenos Aires, Federal Republic
Empresa Nacional de Electricidad S.A. (Endesa),
of Argentina was awarded to Distrilec Inversora S.A., a
a company engaged in electric energy generation
company in which Enersis participates. Subsequently, in
throughout the country and abroad.
December 1995, Enersis acquired an additional 39% of
that company, thus becoming its controlling shareholder,
as from that date.
CORPORATE PURPOSE
The purpose of the company
is to undertake both in Chile
or abroad, the exploitation,
distribution, transmission,
transformation and/or sale of
energy of whatever nature and
in any form, directly or through
other companies, as well as,
the provision of engineering
advisory services, either in Chile
or abroad, in matters related to
such purposes. Its purpose will
further be to manage company
investments in subsidiaries or
related companies whose scope
of business is similar, related
to or connected to energy of
whatever nature and in any form
or to the provision of public
utilities, or which has energy as
their main input. In order to
comply with its main purpose,
the Company will perform the
following functions:
a) Promote, organize, set up,
modify, dissolve or liquidate
companies of any nature,
whose corporate purpose is
similar or related to those of
the Company.
b) Propose to its subsidiary
companies investment,
financing and commercial
policies as well as the
accounting practices and
principles which such
companies shall abide by.
c) Supervise and coordinate
the management of its
subsidiary companies.
7
7
/
6
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Subsequently, between July 1994 and December
1995, Enersis, through the company called Inversiones
Distrilima S.A. acquired 60% of the equity interest of
Empresa de Distribución Eléctrica de Lima Norte S.A.,
Edelnor, and Edechancay.
Furthermore, during the year 1996, Enersis participated
for the first time in the Brazilian market, acquiring an
important part of the shares of Companhia de Eletricidade
do Río de Janeiro, Cerj, which distributes electric energy
in the city of Río de Janeiro, Brazil.
In 1997, Enersis successfully participated in the
process of capitalization and subsequent control of
Codensa S.A. ESP, a company that distributes electricity
in the city of Bogotá and the district of Cundinamarca,
Colombia.
At the beginning of 1998, Enersis once again participated
in the Brazilian market. This time, through a consortium,
was awarded a major percentage in the ownership
of Companhia Energética de Ceará S.A., Coelce, a
company that distributes electricity in Northern Brazil, in
the State of Ceará.
During 1999, Endesa España became the controlling
On May 11, 1999, Enersis acquired an additional 35%
stockholder of Enersis. Through a Tender Offer (OAA),
interest in the ownership of Endesa Chile, where it
in which it offered Ch$320 per share, the Spanish
already held a 25% of the capital stock. Consequently,
multinational company bought 32% of Enersis, which
Enersis attained a 60% share in the ownership of
added to the 32% it had acquired in August 1997,
the generation company and became its controlling
increased Endesa Spain’s final stake in the ownership of
shareholder, allowing Enersis to consolidate itself as the
Enersis to 64%. The transaction, ended on April 7, 1999
largest private electricity Group in Latin America.
involved an investment of US$ 1,450 million.
d) Provide its subsidiary or
related companies with the
needed financial resources
to develop their business
activities, and in addition,
furnish management services
as well as financial,
commercial, technical legal
and auditing services and, in
general, any other services
such as may appear
necessary for a more
adequate performance.
In addition to its core
business purpose and acting
always within the bounds
of the Investment and
Financing Policy approved at
the ordinary Shareholders’
General Meeting, the
company may invest in:
1.- The acquisition, exploitation,
construction, rental,
management, marketing
and disposal of any kind of
real property, either directly
or through subsidiary
companies.
2.- All types of financial assets,
including shares, bonds,
debentures, commerce
paper and in general all
manner of securities and
equity contributions to
companies.
CORPORATE PURPOSE
7
7
/
6
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
9
9
/
8
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
El Guavio Hydroelectric Power Plant, Colombia
Growth and Development Strategy
Enersis’ main objective is to maximize the economic
INVESTMENTS AND DIVESTMENTS
value of its equity, through a stable growth founded on
electric businesses rigorously evaluated and managed.
CHILE
The attainment of this objective is sustained by an
investment strategy, focused on increasing the value of
As envisaged in the Genesis Project, the subsidiary
the subsidiaries and related companies, as well as to
Endesa Chile sold, in October 23, 2000 the entire block
acquiring new companies.
of shares and the control it owned in Transelec S.A.
(Compañía Nacional de Transmisión Eléctrica) to the
On the other hand, Enersis has been defined by Endesa
canadian company Hydro Québec through a process of
España, as the vehicle through which this company
international bidding, thus anticipating to the trends of
will invest in Latin America. This further strengthens the
future regulations of the electric sector in Chile. This
development and expansion strategy that Enersis has
maintained in the region.
operation involved a payment of US$1,076 million and
meant a US$225 million profits for Endesa Chile. Both,
the price paid by this canadian company, and the implied
A key factor of this strategy involves making investments
discount rate clearly exemplify the investors’ confidence in
that significantly call for the experience, management skills
the region, particularly in Chile.
and operating capabilities of Enersis and its subsidiaries.
Such requirement makes it necessary to invest in
Moreover, Enersis sold its indirect stake in the
companies in which Enersis will have a final decision in
ownership of Esval, (Empresa de Obras Sanitarias de
their management and operation, as well as the power to
Valparaíso S.A.) through Aguas Puerto S.A., as a result of
approve or reject its investment projects.
Another development factor consists in having an
exceptional team of professional that interact actively
a transaction involving US$137 million. Likewise, Enersis
sold its stake in the ownership in Aguas Cordillera for
a total of US$189 million. Disposal of these stakes is
justified by the inability to secure an operative synergy
with the subsidiaries, providing them with assistance in
between the electric and the sanitary business given
evaluating their investment projects and are permanently
the limitations on overlapping concessions imposed by
alert to new business opportunities in their respective
Chilean laws.
business areas in the Latin American market.
The above mentioned factors enable Enersis to make
Additionally, Enersis obtained US$50 million for the
disposal of single family land lots and macrolots of
investments that contribute to the growth of profits, with
Santuario del Valle Project and industrial land lots and
an adequate weighting of risks deriving from the business
macrolots of Enea Project.
activities in which it participates.
In relation to acquisitions, Enersis successfully negotiated
In the last year, important businesses were concluded
the offers intended to increase its stake in the ownership
with the intended purpose of improving Enersis’ financial
of subsidiaries Chilectra and Río Maipo. With an
position. To this end, some assets were sold and the
investment of US$364 million, Enersis’ share control in
Company’s stake in electric energy distribution companies
the ownership of Chilectra rose from 72.6% to 98.0%.
was strengthened. Besides, an investment intended to
Likewise, Enersis acquired an additional 14.7% interest in
start a line of business of new technology was made.
the ownership of Río Maipo. This transaction involved a
payment of US$23 million, thus increasing Enersis’ control
9
9
/
8
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
in this company up to 98.4%. Consequently, Enersis
In anticipation to electric market integration trends in
increases its participation in its traditional businesses
Latin America, in June, the first power interconnection
without requiring additional management efforts in one of
(1,000 MW) between Brazil and Argentina was
the areas with the highest growth and lower risk rating
commissioned. This project was developed through CIEN
in the region.
(Compañía de Interconexión Energética) in which Enersis
participated through Endesa Chile.
Enersis also acquired from Endesa Spain a 15%
interest of Endesa Marketplace’s capital stock, currently
By the end of 2000, CIEN awarded the construction of
Opciona.com, a company involved in Business to
the second 1,000 MW-power interconnection line between
Business (B2B) type of transactions via Internet. This
Brazil and Argentina. This development further strengthen
transaction involved an investment of US$2 million.
the Group’s strategic positioning in energy interchanges in
Through its participation in this company, Enersis
South America, a marketplace in which Enersis is present
positions itself in the new technology sector, a market
in both electric energy generation and distribution.
with important development opportunities.
Between April and July, 2000 an additional 240 MW
ARGENTINA
generation capacity was commissioned at the Tal Tal
Edesur acquired in US$150 million, 10% of the equity
Power Generation Station. This project located in the SIC
interet that workers had owned since the company was
(Central Interconnected System) consumes the natural
privatized. Following this transaction, Edesur reduced
gas needed from the generation subsidiary of Endesa
its capital stock by an amount similar to that of the
Chile, Gas Atacama.
acquisition. As a result, Enersis’ stake in the ownership of
BRAZIL
Edesur rose from 51.0% to 64.3%.
PERÚ
By executing an option received from Endesa Spain,
Enersis increased its stake in the ownership of Cerj
The Peruvian energy generation subsidiary of Endesa
distributor by an additional 8% involving an amount
Chile, Edegel, acquired a part of the ownership held by
of US$57 million. At the same time, Chilectra’s stake
the Peruvian State in this Peruvian electricity generation
rose by a 10.5% involving an investment of US$75
company. Following this acquisition, Edegel proceeded to
million. Through this operation, Enersis’ direct and indirect
reduce its capital.
ownership in Cerj rose to 57.4%.
Also, during the year 2000, Edegel began to operate the
42 MW Yanango and the 149 MW Chimay generation
plants.
Río de Janeiro, Brazil
1
1
1
1
/
0
1
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
PROSPECTS FOR THE YEAR 2001
Final decision to pursue potential business opportunities
CHILE
in the Brazilian marketplace will not only consider their
strategic importance but their profitability and risk factors
as well.
In the year 2001, the process of consolidation set by
efficiency improvements, as set forth in the Genesis
Moreover, construction works of the second
Project, will continue.
interconnection line between Argentina and Brazil will
Chile’s most important project will be Ralco
hydroelectric plant, develop by Endesa Chile. This
ARGENTINA
570 MW plant will increase power generation supply in
continue.
response to the consumption growth experienced by the
Edesur will continue to execute its investment program in
country during the year 2000, which made Chile attain
excess of US$500 million over a five-year period, directed
once again the growth rate levels that had plummeted
to service quality and network growth.
during the 1999 economic recession.
Two potential electricity distribution businesses are
Feasibility of new power generation projects along the
anticipated in the provinces of Córdova and Santa Fé. The
country will be assessed on the basis of demand growth
Argentinean Government has expressed its intention to
and node price estimates for the future.
develop a Federal Plan for the transportation network. The
Following the 2000 tariff revision process, Chilectra and
to the Argentine electric sector and it will reflect upon
Río Maipo will continue to invest in power distribution
Enersis’ assets in this country. As provided for the Federal
networks, with the objective of maintaining their existing
Plan, not only will investment opportunities but also its
good quality standards, and meeting the demand growth
impact upon the Group’s assets.
development of such a plant is of paramount importance
anticipated for the forthcoming years.
BRAZIL
Argentina will also proceed with the construction works of
the second interconnection line with Brazil.
On the basis of its large physical size and population of
PERÚ
170 million people, Enersis assigns Brazil a high strategic
importance in the region.
The Peruvian State has expressed its intention to continue
with the disposal of its stakes in electric companies. It is
It is envisaged that during the year 2001 Brazil will
possible that opportunities to buy the state’s stake in the
continue with the process of privatization. Consequently,
Peruvian distribution subsidiary Edelnor will arise.
monitoring of resulting opportunities will be kept up.
The area of hydroelectric generation will specifically
COLOMBIA
offer business opportunities in the states of Sao Paulo
It is expected that Codensa will maintain its performance
(CESP) and, possibly, of Paraná (COPEL). In addition,
both in reducing generation losses and improving its
medium and small-size electricity distribution companies
service quality, thus prevailing in its future management
are likely to be privatized, particularly in the Northern and
objectives an orientation to customer satisfaction and
Northeastern regions of Brazil.
profitability.
Additionally, participation in thermo electric power
In the electricity generation area, the country has once
generation projects sponsored by the Brazilian State as
again recorded positive demand growth rates. This
part of the priority program of thermo electric generation
situation suggests better prospects for energy stock
will be considered, particularly in the same areas where
exchange prices.
the distribution concessions are located.
1
1
1
1
/
0
1
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Investment and Financing Policy for the year 2001
All present members of the Board of Directors
unanimously agreed to submit to the Shareholders’
Meeting, scheduled for April 2, 2001 the following
Investment and Financing Policy for the year 2001:
1. INVESTMENTS
(a) Investment areas.
iii) Other Investments, such that the clean assets factor
for accounting purposes of Enersis, calculated on
the basis of the individual balance sheet should
not represent, as a proportion of Enersis’ assets,
a percentage not below that stipulated in the first
paragraph of article 45 bis of Decree Law N° 3,500.
(c) Controlling participation in areas of investment.
Enersis will make investments, pursuant to the
provisions in its by-laws, in the following areas:
• Equity contributions to its public utility subsidiaries
• Equity contributions for investment or creation of
subsidiary or related companies the scope of
business of which is similar, related or connected
to energy in any of its forms or nature, or the
provision of utility services that have energy as
their main input.
• Other investments in real property or in any other
kind of financial assets, negotiable commercial
instruments, securities and equity contributions to
companies.
(b) Maximum investment limits.
In order to control areas of investment and pursuant to
what is defined in the general scope of business of the
company, actions will be taken as follows:
• Propose to the Shareholders’ Meetings of
the subsidiary and related companies, the
appointment of directors that correspond to
Enersis’ participation in the ownership of such
companies, with appointees originating preferably
from the Board of Directors of the senior
management of both the Company or other
subsidiary companies.
• Propose to the subsidiary companies the
investment, financial and commercial policies, as
well as the accounting systems and criteria, which
they are to abide by.
• Supervise the management and operation of the
The maximum investment limits for each investment
subsidiary and related companies.
area will be as follows:
i)
Investment in its public utility subsidiaries as
needed to enable such subsidiaries to attain their
scope of business and perform their function as
concessionaires.
• Maintain a permanent control of the borrowing
limits and the clean assets factor for accounting
purposes, in a manner such that the investments
or equity contributions made or to be made
do not involve a variation that departs from
the parameters defining the maximum investment
ii)
Investment in other subsidiary companies, such as
limits.
the total of the proportions of the fixed assets that
correspond to the participation in each one of these
other subsidiary company should not exceed the
proportion of fixed asset that corresponds to the
participation of the public utility subsidiaries in the
parent company.
3
3
1
1
/
2
1
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
3
3
1
1
/
2
1
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Betania Hydroelectric Power Plant, Colombia
2. FINANCING
(c) Authority of management to agree with creditors
on granting collateral.
(a) Maximum leverage level.
The maximum leverage level for Enersis will be based
on granting real and personal collateral within the
on a ratio of total debt to equity plus minority interest
frame of the provisions in standing laws and the
Management has the authority to agree with creditors
equal to 1.75 of the consolidated balance sheet. The
Company’s by-laws.
above notwithstanding, such ratio may increase up
to 2.40 on a temporary basis and until the total
(d) Essential assets for the operation of the company
placement of the capital increase approved at the
Extraordinary Shareholder’ Meeting held on April 30,
The shares of common stock that represent equity
1999.
contributions made by the Company to its subsidiaries
Chilectra and Río Maipo are essential assets for the
(b) Authority of management to agree with creditors
operation of the company.
on restrictions to dividend distributions.
Restrictions to dividend distributions may be agreed
solely provided that they are previously approved
at a Shareholders’ Meeting (either Ordinary or
Extraordinary).
Ownership of the Company
The capital stock of the Company is divided into 9,380,000,000 shares of the same and only one series with no par
value.
At December 31, 2000, a total of 8,291,020,100 shares of common stock were subscribed and paid-in, with the
following breakdown:
SHAREHOLDERS
Endesa España (*)
A.F.P.
Citibank N.A.
Stockbrokers, Mutual Funds and Insurance Co´s
Foreign Investment Funds
Other Shareholders
Total
N° SHAREHOLDERS
N° SHARES
3
8
1
81
9
10,039
10,141
5,389,163,065
1,117,475,269
1,050,933,600
230,546,117
122,981,833
379,920,216
%
65.00
13.48
12.68
2.78
1.48
4.58
8,291,020,100
100.00
(*) The ownership interest of Endesa España in Enersis of 65% derives from the controlling stake that it has in the ownership of Compañía de Inversiones
Chispa Uno S.A. and Endesa Internacional S.A. plus the 35.1% direct interest in the ownership through Elesur S.A.
List of twelve largest shareholders:
As of December 31, 2000, Enersis was owned by 10,141 shareholders. The twelve largest were:
NAME
Elesur S.A.
N° SHARES
%
ACCUMULATED %
2,914,325,536
35.150386
35.150386
Compañía de Inversiones Chispa Uno S.A.
1,780,246,340
21.471982
56.622368
Citibank N.A. (Según Circ. 1.375 S.V.S.)
1,050,933,600
12.675564
69.297932
Endesa Internacional S.A.
A.F.P. Provida S.A. (Pension Fund)
A.F.P. Habitat S.A. (Pension Fund)
694,591,189
8.377632
77.675564
350,306,087
4.225126
81.900691
245,522,488
2.961306
84.861997
A.F.P. Cuprum S.A. (Pension Fund)
171,798,610
2.072105
86.934102
A.F.P. Santa María S.A. (Pension Fund)
152,474,967
1.839037
88.773139
A.F.P. Summa Bansander S.A. (Pension Fund)
133,186,721
1.606397
90.379537
The Chile Fund Inc. (Bea Pension Funds Mg. Company)
37,427,265
0.451419
90.830956
The Chile Emerging Markets (Index Common Trust Fund)
34,366,184
0.414499
91.245455
A.F.P. Planvital S.A. (Pension Fund)
31,739,610
0.382819
91.628274
Subtotal : 12 Shareholders
Others : 10,129 Shareholders
7,596,918,597
91.628274
91.628274
694,101,503
8.371726
100.000000
Total : 10,141 Shareholders
8,291,020,100
100.000000
100.000000
5
5
1
1
/
4
1
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
SUMMARY OF REMARKS AND PROPOSALS
the Santiago Stock Exchange and the Chilean Electronic
SUBMITTED BY SHAREHOLDERS
Stock Exchange, as well as in the United States, through
the New York Stock Exchange (NYSE).
Enersis received no remarks regarding the operation of
the business activities undertaken between January 1 and
Santiago Stock Exchange and Chilean Electronic
December 31, 2000, submitted by majority shareholders
Stock Exchange
or groups of shareholders, who add up to more than 10%
of the shares of common stock issued voting rights in
pursuance to the provisions in article 74 of Law No 18,046
During 2000, on the Santiago Stock Exchange 588 million
shares were trade, equivalent to Ch$121,078 million. On
and in Articles 82 and 83 of the Regulations in the Chilean
the other hand, on the Chilean Electronic Stock Exchange
Company Law.
258 million shares were traded, equivalent to Ch$53,082
STOCK EXCHANGE TRADING
million.
The graphs that follow show the number of shares and
stock of the Company closed at year-end with a price
the amounts traded, as well as the closing prices at each
of Ch$202.0 on the Santiago Stock Exchange and
year-end of the shares of Enersis, both in Chile, through
Ch$202.4 on the Electronic Stock Exchange.
In addition, it can be noted that the share of common
SHARES TRADED
(Million shares)
AMOUNTS TRADED
(Million Ch$ at December each year)
CLOSING PRICE
(Ch$ at December each year)
New York Stock Exchange ( NYSE )
In the United States, 23 million ADR’s (1 ADR = 50 shares), equivalent to US$443 million were traded. The price of the
ADR closed at US$17.6 millones.
ADR´s TRADED
(Million ADR´s)
AMOUNTS TRADED
(Million US$ at December each year)
CLOSING PRICE
(US$ at December each year)
5
5
1
1
/
4
1
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Furthermore, as the following graph shows, the stake in the ownership of Enersis by ADR holders went down from 13.9%
in December 1999 to 12.7% in December 2000.
PARTICIPATION OF ADR´s TO TOTAL NUMBER OF SHARES OF ENERSIS
RISK CLASSIFICATION
The following table details the international risk rating assigned to the Company at December 31, 2000:
Debt in Local Currency
Debt in Foreign Currency
A
A-
-
Baa1
A
A-
FITCH
MOODY’S
STANDARD & POOR’S
Furthermore, it is worth pointing out that the shares and bonds issued by the company have been rated as follows:
Shares
Bonds
FITCH CHILE
FELLER RATE
First Class Level 1
First Class Level 1
AA-
AA+
7
7
1
1
/
6
1
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Dividend Policy for the year 2001
All present members of the Board of Directors
4.- Profits generated by subsidiary companies organized
unanimously agreed to submit to the Shareholders’
Meeting, scheduled for April 2, 2001 the following
Dividend Policy they expects to enforce during 2001:
Distribute in the months of May, August and November of
the year 2001 and in the month of February 2002 a interim
dividend to be charged to the net income of the year
2001, amounting to 85% of the net income from normal
operations in the quarters ending in the months of March,
June, September and December of such fiscal year. For
purposes of the above calculation, the interim dividends
for the year 2001 already distributed on such distribution
date will be deducted from 85% of the cumulative net
income.
Dividends established in pursuance of this policy will be
applied to the income originated from normal company
operations, understanding as such the net income
obtained by the Company in fiscal year 2001, without
considering those originating from the following events:
1.- Accounting effects deriving from the valuation of
equity contributions made to subsidiary companies.
2.- Accounting effects deriving from the recognition of the
premium in equity placement by subsidiaries of their
own stock.
3.- Profits arising directly or indirectly from participation in
related companies organized in Chile or abroad.
abroad or by subsidiary companies in which the
participation of the Company, either directly or
indirectly, is less than 60% of the capital stock of
those companies, as well as profits deriving from the
disposal of assets in such companies.
5.- Accounting recognition of positive and negative
goodwill associated with the investments.
The Board of Directors shall not distribute interim
dividends based on profits that arise from the above
events and the Ordinary Shareholders’ Meeting will state
their view thereon when approving the final dividend.
The foregoing is the intention of the Board of Directors
of the Company and, consequently, its compliance will
be subject to the actual profits as well as to the results
reflected in the projections that the Company makes from
time to time, or to the existence of given conditions.
As for the final dividend policy, it is the purpose of
the Board of Directors that such dividends will be as
a minimum the interim dividends already distributed or
the minimum stated by the Chilean Law on Joint Stock
Companies, whichever of the two be higher.
The following table shows the dividends per share paid
out over the last five years.
DIVIDEND
NUMBER
57
58
59
60
61
62
63
64
65
66
67
68
69
70
DIVIDEND
TYPE
Interim
Definitive
Interim
Interim
Interim
Interim
Definitive
Interim
Interim
Interim
Interim
Definitive
Interim
Definitive
CLOSING
DATE
16.02.96
02.05.96
16.05.96
23.08.96
22.11.96
21.02.97
11.04.97
22.05.97
22.08.97
21.11.97
20.02.98
07.05.98
20.11.98
11.05.99
DUE
DATE
22.02.96
08.05.96
23.05.96
29.08.96
28.11.96
27.02.97
17.04.97
28.05.97
28.08.97
27.11.97
26.02.98
13.05.98
26.11.98
17.05.99
Ch$ PER SHARE
(Ch$ AT EACH YEAR)
1,10
4,16
1,30
1,65
2,00
1,00
4,66
1,50
2,00
2,40
0,80
4,50
1,60
4,00
Ch$ PER SHARE
(Ch$ AT DEC 2000)
1,39
5,13
1,60
2,00
2,39
1,18
5,43
1,74
2,30
2,69
0,89
4,96
1,72
4,24
DIVIDEND
ACCRUED IN
1995
1995
1996
1996
1996
1996
1996
1997
1997
1997
1997
1997
1998
1998
7
7
1
1
/
6
1
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Board of Directors
Sitting: Rafael Miranda, Alfredo Llorente and Ernesto Silva
Standing: Hernán Somerville, José Fesser, Luis Rivera and Eugenio Tironi
A Board of Directors made up by seven members, who
DIRECTORS
serve a term of three years, and may be reelected,
manages Enersis.
As of December 31, 2000, the Board of Directors of
Enersis was composed by the following members:
CHAIRMAN
Alfredo Llorente
Industrial Engineer
Escuela Técnica Superior de Ingenieros Industriales de Madrid
VICE-CHAIRMAN
Rafael Miranda
Industrial Engineer
Instituto Católico de Artes e Industrias (ICAI) de Madrid
José Fesser
Lawyer
Universidad de Sevilla
Luis Rivera
Civil Engineer (Infrastructure)
Universidad Politécnica de Madrid
Ernesto Silva
Commercial Engineer
Pontificia Universidad Católica de Chile
Hernán Somerville
Lawyer
Universidad de Chile
Eugenio Tironi
Sociologist
Escuela de Altos Estudios en Ciencias Sociales de París
SECRETARY OF THE BOARD OF DIRECTORS
Domingo Valdés
Lawyer
Universidad de Chile
9
9
1
1
/
8
1
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
REMUNERATION OF THE BOARD OF DIRECTORS
Pursuant to the provisions of article 33, Law 18,046
for the Board of Directors for the accounting period 2000.
on Joint Stock Companies, the Ordinary Shareholders’
Details on amounts paid to the board of Directors of
Meeting held on April 6, 2000, approved the remuneration
Enersis and of those who were Directors of subsidiaries
are shown below:
AT DECEMBER 31, 2000
AT DECEMBER 31, 1999
DIRECTOR
ENERSIS OTHER SUBSIDIARIES
Alfredo Llorente
Carlos Vicuña
Enrique García
Ernesto Silva
Eugenio Tironi
Felipe Montt
Héctor López
Hernán Somerville
José Guzmán
José Fesser
Juan Errázuriz
Leonidas Vial
Luis Rivera
Miguel Poduje
Rafael Miranda
Rodolfo Martín
Total
ThCh$
49,824
10,239
-
24,912
7,338
-
-
24,912
-
24,912
-
-
22,144
-
33,216
-
197,497
ThCh$
3,777
-
13,768
28,750
-
-
18,215
-
-
-
-
54,623
-
-
-
-
119,133
TOTAL
ThCh$
53,601
10,239
13,768
53,662
7,338
-
18,215
24,912
-
24,912
-
54,623
22,144
-
33,216
-
316,630
ENERSIS OTHER SUBSIDIARIES
ThCh$
56,640
18,878
-
36,584
-
-
21,236
11,801
30,706
14,163
15,353
-
14,163
15,353
18,882
34,778
288,537
ThCh$
3,753
-
-
24,689
-
7,591
16,151
-
-
233
12,236
34,630
-
-
-
-
99,284
TOTAL
ThCh$
60,393
18,878
-
61,274
-
7,591
37,387
11,801
30,706
14,396
27,589
34,630
14,163
15,353
18,882
34,778
387,821
COMMITTEE OF DIRECTORS
Activities carried out by the Committee of Directors
during the period ended at December 31, 2000
Enersis’ Committee of Directors was established through
agreement Nº 076/2000 in the Ordinary Meeting of the
Since it was established in August , 2000 and up
Company’s Board of Directors Nº 12/2000 dated August
to December 31 of same year, Enersis’ Committee of
23 of 2000. This committee was made up by the following
Directors has principally been in charge of the analysis
members: Alfredo Llorente, Hernán Sommerville, Ernesto
of the accounting criteria of Enersis’ Financial Statements
Silva and José M. Fesser.
as of September 30, 2000, of the analysis of Enersis’
Financial Statements as of September 30, 2000 and of
On January 20, 2001, Enersis’ Board of Directors,
the analysis of the Operating Income of the Financial
in Ordinary Meeting Nº 01/2001, unanimously agreed
Statements as September 30, 2000.
though the attending members to conform the Committee
of directors to the number of members provided in article
Expenses of Enersis’ Committee of Directors and its
50 bis of Law Nº 19,705, consequently reducing the
advisors during the period ended at December 31,
members number of said Committee from four to three.
2000.
As of said date, Enersis’ Committee of Directors was
made up by the following persons: Alfredo Llorente,
Since it was established in August, 2000 up to December
Hernán Sommerville and Ernesto Silva.
31 of same year, Enersis’ Committee of Directors has not
incurred in any expense nor has it required professional
advisory service for carrying out its duties.
9
9
1
1
/
8
1
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Organizational Structure
1
1
2
2
/
0
2
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
MANAGEMENT OF ENERSIS
CHIEF EXECUTIVE OFFICER
CHIEF INVESTMENTS AND RISK OFFICER
Enrique García
Civil Engineer (Infrastructure)
Escuela Técnica Superior de ICCP de Madrid
Ricardo Alvial
Public Administrator
Universidad de Chile
ADJUNCT CHIEF EXECUTIVE OFFICER
CHIEF INFORMATION SYSTEMS OFFICER
Juan Domínguez
Commercial Engineer
Universidad de Chile
BUSINESS EXECUTIVE OFFICER
Alberto López
Industrial Engineer
Universidad Politécnica de Madrid
PLANNING AND CONTROL EXECUTIVE OFFICER
Martín Madrid
Industrial Engineer
Universidad Politécnica de Madrid
CORPORATE COMMUNICATIONS DIRECTOR
Fernando Nadal
Journalist and Lawyer
Universidad Alcalá de Henares de Madrid
COMPTROLLER
José Martín
B.S. in Economic Sciences
Universidad Complutense de Madrid
ORGANIZATION AND HUMAN RESOURCES
EXECUTIVE OFFICER
Luis de la Barra
Psychologist
Pontificia Universidad Católica de Chile
LEGAL COUNSEL
Domingo Valdés
Lawyer
Universidad de Chile
INSTITUTIONAL AFFAIRS DIRECTOR
José Domínguez
Civil Engineer
Pontificia Universidad Católica de Chile
COMPTROLLER DIRECTOR
Rolf Heller
Public Accountant and Auditor
Pontificia Universidad Católica de Chile
Cristóbal Sánchez
B.S. Information Systems
Universidad Politécnica, Madrid
CHIEF PROCUREMENT OFFICER
Francisco Núñez
Civil Engineer (Infrastructure)
Universidad Politécnica de Madrid
CHIEF CORPORATE ACCOUNTING OFFICER
Fernando Isac
Economist
Universidad de Zaragoza
CHIEF FINANCIAL OFFICER
Mauricio Balbontín
Commercial Engineer
Universidad de Chile
ADJUNCT BUSINESS DIRECTOR
Ramón Vázquez
Mining Engineer
Escuela Técnica Superior de Ingenieros de Minas de Oviedo
CHIEF REGULATION OFFICER
José Kindelán
Mining Engineer
Escuela Superior de Ingenieros de Minas de Madrid
CHIEF DIVERSIFICATION OFFICER
Emilio García
Industrial Engineer
Escuela Superior de Ingenieros Industriales de Bilbao
CHIEF DEVELOPMENT OFFICER
Ignacio Blanco
Industrial Engineer and Economist
Universidad Politécnica de Barcelona and Universidad de Zaragoza
ENERGY BUSINESS DIRECTOR
Juan Vásquez
Civil Engineer (Electric)
Universidad de Chile
CHIEF ORGANIZATION OFFICER
Gonzalo Martín
B.S. in Chemistry
Universidad Complutense de Madrid
1
1
2
2
/
0
2
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
CHIEF INDUSTRIAL RELATIONS OFFICER
CHIEF EXECUTIVE OFFICER ENDESA CHILE
MANAGEMENT OF SUBSIDIARIES
Alfonso Brito
Commercial Engineer
Universidad de Chile
CHIEF HUMAN RESOURCES OFFICER
Francisco Silva
Public Administrator
Universidad de Chile
CHIEF PLANNING OFFICER
Juan Spöerer
Commercial Engineer
Pontificia Universidad Católica de Chile
MANAGERS’ REMUNERATION
The total remuneration obtained by the aforementioned
Enersis’ managers, during the year 2000, amount to
Ch$2,035 million. This amount includes the remuneration
Héctor López
B.S. in Law and Economic Sciences
ICADE de Madrid
CHIEF EXECUTIVE OFFICER
REGIONAL DISTRIBUTION BUSINESS
Marcelo Silva
Commercial Engineer
Universidad de Chile
CHIEF EXECUTIVE OFFICER CHILECTRA
Julio Valenzuela
Civil Engineer (Electric)
Pontificia Universidad Católica de Chile
CHIEF EXECUTIVE OFFICER RÍO MAIPO
Alejandro Gómez
Civil Engineer
Universidad de Chile
of the existing managers at December 31, 2000, as well
CHIEF EXECUTIVE OFFICER EDESUR
as those managers who disassociated along the period.
José Rovira
Industrial Engineer (Electric)
Universidad Técnica Industrial de Barcelona
INCENTIVE PLAN
Enersis has a yearly bonus plan for its executives for
goal achievement and individual contribution level to
the company’s results. This plan includes a definition
of bonus ranges in accordance with its executives’
hierarchical level. The bonuses that are occasionally given
to the executives consist of a given number of monthly
gross remunerations.
CHIEF EXECUTIVE OFFICER EDELNOR
José Hidalgo
Licentiate on Economic and Business Administration Sciences
Universidad Santiago de Compostela
CHIEF EXECUTIVE OFFICER CERJ
Javier Villar
Industrial Engineer
Escuela Técnica Superior de Ingenieros Industriales and
Telecomunicaciones de Bilbao
CHIEF EXECUTIVE OFFICER COELCE
Manuel Montero
Industrial Engineer
Escuela Técnica Superior de Ingenieros Industriales de Madrid
CHIEF EXECUTIVE OFFICER CODENSA
Marcelo Llévenes
Commercial Engineer
Universidad de Chile
CHIEF EXECUTIVE OFFICER ENERSIS ENERGÍA
DE COLOMBIA
Carlos Restrepo
Electric Engineer
Escuela Colombiana de Ingeniería
3
3
2
2
/
2
2
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
CHIEF EXECUTIVE OFFICER COMPAÑÍA AMERICANA
CHIEF EXECUTIVE OFFICER DIPREL
DE MULTISERVICIOS
Pantaleón Calvo
Civil Engineer
Universidad de Chile
Eduardo López
Commercial Engineer
Pontificia Universidad Católica de Valparaíso
CHIEF EXECUTIVE OFFICER INMOBILIARIA
CHIEF EXECUTIVE OFFICER SYNAPSIS
MANSO DE VELASCO
Victor Muñoz
Civil Engineer
Universidad Federico Santa María de Valparaíso
Andrés Salas
Civil Engineer
Universidad de Chile
HUMAN RESOURCES
The distribution of human resources at Enersis and its subsidiary, at December 31, 2000, was as follows:
COMPANY
EXECUTIVES
PROFESSIONALS
AND TECHNICIANS
ADMINISTRATIVE
STAFF
Enersis
Endesa Chile (1)
Chilectra (2)
Río Maipo
Edesur
Edelnor
Cerj
Codensa
Coelce
CAM (3)
Diprel (4)
Synapsis (5)
Manso de Velasco
Total
58
44
28
2
34
24
33
25
32
7
6
15
5
313
100
1,473
342
32
574
287
263
364
625
104
47
74
7
109
247
498
58
1,771
307
1,106
580
935
290
59
388
4
4,292
6,352
10,957
(1) Includes: Endesa Chile - Ingendesa - Pangue - Pehuenche - San Isidro - Central Costanera - El Chocón - Edegel - Emgesa - Betania
Cachoeira Dourada - Infraestructura 2000 - Autopista Los Libertadores - Autopista El Sol - Túnel El Melón.
(2) Includes: Empresa Eléctrica de Colina
(3) Includes: CAM Chile - CAM Argentina - CAM Colombia - CAM Perú
(4) Includes: Diprel Chile - Diprel Colombia - Diprel Perú
(5) Includes: Synapsis Chile - Synapsis Argentina - Synapsis Colombia - Synapsis Brasil - Synapsis Perú
TOTAL
267
1,764
868
92
2,379
618
1,402
969
1,592
401
112
477
16
3
3
2
2
/
2
2
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Corporate Structure
5
5
2
2
/
4
2
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
5
5
2
2
/
4
2
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Generation
7
7
2
2
/
6
2
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
More than 12,800 MW of installed
capacity in Latin America.
7
7
2
2
/
6
2
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Endesa Chile
OWNERSHIP STRUCTURE OF THE COMPANY
Enersis, is the main stockholder in Endesa Chile with 60%
this figure, 71.9% is hydraulic energy, and the rest is
thermal. Its annual generation reached 15,346 GWh and
its sales, 20,086 GWh during the year.
Endesa Chile participates in the Central Interconnected
System (SIC), the most important interconnected system
in the country, covering an area that serves approximately
93% of the national population, with an installed capacity
of 3,853 MW, which represents approximately 55% of the
of the property, and it has channeled through same the
SIC.
investment in the area of electric generation. Additionally,
the other shareholders are:
Endesa also participates on the Northern Interconnected
System (SING), through its subsidiary Celta and indirectly
through company Gas Atacama and Nopel, serving
various mining companies and featuring sales and selling
energy on the spot market. Celta’s installed capacity in this
system is 182 MW, which represents 6% of the SING.
This subsidiary has presence in Argentina, through
Central Costanera S.A., Hidroeléctrica El Chocón S.A.
and Central Termoeléctrica Buenos Aires S.A., operating
ELECTRIC BUSINESS
The main activities carried out by Endesa Chile and its
subsidiaries are related to the generation and supply of
electric energy, transportation of natural gas, engineering
and infrastructure.
Endesa Chile is the main electric energy generation
company in Chile and one of the country’s largest
companies. In Chile it operates a total of 4,035 MW,
representing 40% of the country’s installed capacity. From
IDENTIFICATION OF THE COMPANY
Corporate name
Empresa Nacional de
Electricidad S.A
Type of company
Limited Liability Stock Company
Tax register number
91,081,000-6
Address
Santa Rosa N°76
Santiago, Chile
Telephone
(56-2) 630 9000
Fax
(56-2) 635 4720
Web site
www.endesa.cl
E-mail
comunicacion@endesa.cl
Securities register number
N°114
External auditors
Deloitte & Touche
Total number of shares
8,201,754,580
9
9
2
2
/
8
2
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Subscribed and paid-in capital
(ThCh$) 979,156,712
Participation of Enersis
(direct and indirect)
60,0%
Corporate purpose
Generation, transport and
provision of electric energy,
sale of consulting and
engineering services within the
country and abroad and the
construction and explotation of
infrastructure works.
BOARD OF DIRECTORS
Chairman
Pablo Yrarrázaval
Vice-Chairman
Antonio Pareja
Directors
Jaime Bauzá
Jesús Burillo
José Hidalgo
Pedro Larrea
Andrés Regué
Antonio Tuset
Leonidas Vial
Chief Executive Officer
Héctor López
Costanera Power Plant, Argentina
a total of 3,622 MW, which represents 17% of the
In Perú, through Edegel, operating a total of 997 MW,
Argentinean Interconnected System’s total, an annual
representing 22 % of the Peruvian system, an annual
generation of 10,129 GWh and annual sales of
generation of 3,623 GWh and annual sales of 3,604 GWh.
15,549 GWh.
Finally in Colombia, through Central Hidroeléctrica
The company has presence in Brazil, through Centrais
de Betania S.A. E.S.P. and the power generation
Elétricas Cachoeira Dourada S.A., operating a total of
company Emgesa, operating a total of 3,035 MW,
658 MW, representing approximately 1% de of the
representing 25% of the installed capacity in Colombia,
installed capacity in that country, an annual generation of
an annual generation of 9,618 GWh and annual sales of
3,406 GWh and annual sales of 3,887 GWh.
13.356 GWh.
FINANCIAL INFORMATION (Thousand Ch$ as of December 2000)
9
9
2
2
/
8
2
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
The second phase, currently under development, shall
enable to duplicate the export capacity, that is, marketing
a firm power of 2,000 MW in Brazil. The characteristics
of the works to be carried out are similar to those of the
first phase and the date for its commissioning is estimated
to be May 2002.
The estimated investment for the two phases is
approximately US$650 million.
Pangue Hydroelectric Power Plant, Chile
RALCO
ELECTRIC PROJECTS
The Ralco project is located at the Alto Biobío area, about
120 km south-east of Los Angeles and 30 km upstream
from the Pangue power station. This power station, the
Among the most relevant electric projects the following
nominal power of which is 570 MW, shall permit the
ones may be pointed out;
average annual contribution of 3,100 GWh to the electric
CIEN, Interconexión Energética Argentina-Brazil
system.
This project, which was devised to export energy from
construction was 31.0%, a situation that matches the
Argentina into Brazil, is operated by CIEN (Compañía de
schedule that contemplates the commissioning to take
Interconexión Energética), a company related to Endesa
place by the end of the first half of year 2003.
At December 31, 2000 the physical progress of the works
Chile, a company where Endesa España also participates
as a partner.
CENTRAL – SIC JOINT
It contemplates two phases, the first one, already in
This project corresponds to a transmission system
service, consists in establishing an electric interconnection
enabling the interconnection between the Ralco Power
to market a firm power of 1,000 MW, with associated
energy from Argentina in Brazil. This phase started
Station and the Charrúa Substation, through a 220 kV and
140 km two-circuit line. This line is located at the Biobío
operations on June 22, 2000 and at present it is operating
region, at about 125 km east and 45 km north of the city
without any problems.
of Los Angeles.
CIEN Line Argentina-Brazil
1
1
3
3
/
0
3
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
1
1
3
3
/
0
3
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Ralco Project , Chile
TALTAL
Taltal Station and to industrial, mining and gas distribution
customers operating in the areas of Mejillones,
During April and July off year 2000, the phase one
Antofagasta and Paposo.
of the Taltal Power Station was placed into service,
corresponding to two gas-driven turbines of 120 MW
OTHER BUSINESSES
each, which are fed with natural gas conveyed from
Argentina, which is carried by Gas Atacama.
Among the other businesses we may point out company
TALTAL GAS PIPE
Ingendesa, which participated in important investment
projects, particularly in the areas of energy, infrastructure,
mining, public works and telecommunications, through
During February 2000 this gas pipe was placed into
services rendered to both companies of the Group and
service. It runs between Mejillones (First Region) and
other non-related customers.
Paposo (Second Region), with a total length of 229 km,
divided into two spans. The first one runs from Mejillones
Additionally, Tunel El Melón S.A., which operates on
and La Negra, with 88 km of length and 16 inches of
Ruta 5 Norte, Sociedad Concesionaria Autopista
diameter, and the other one runs between the towns of La
del Sol S.A. engaged in the design, construction and
Negra and Paposo, being 141 km long and its diameter
operation of the Santiago - San Antonio highway and
being 12 inches.
Proyecto Autopista Los Libertadores comprising the
expansion and improvement of the
These works are owned by Endesa Chile’s related
General San Martín highway.
company Gasoducto Atacama Compañía Ltda. and the
purpose of this gas pipe is to supply natural gas to the
Distribution
3
3
3
3
/
2
3
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
9.6 million customers
in five contries
of South America.
3
3
3
3
/
2
3
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Chilectra
During year 2000 Chilectra purchased energy from
several generation companies in the country, among
others, Endesa Chile (28.9%), Gener (26.9%),
Pehuenche (15.2%), Pangue (11.5%) and Colbún
(10.4%).
OPERATING ACTIVITY
TARIFF SETTING PROCESS
Chilectra is the largest electric energy distribution
company in the country. It serves 33 boroughts of the
Metropolitan Region over an area of 2,118 km2 within its
concession area.
Enersis, its main stockholder with 98.0%, after
purchasing in November 2000, an additional 25.4% of
the shares through a Public Tender Offer that ended in
January 2001, has appointed it as its operator in the
investments it conducts in the distribution business area.
SALE AND PURCHASES OF ENERGY
At December 31, 2000, the physical energy sales
reached 8,854 GWh, representing a 5.1% increase as
compared to the identical period of 1999. From the total
energy invoiced during year 2000, 30.6% corresponds
to residential sales, 29.0% to industrial sales, 20.3% to
commercial sales and 20.1% to other areas.
The electricity rates are set every four years. Pursuant to
the electric law, a supply tariff review took place in the year
2000, which in terms of the 1999 period considered for the
tariff setting process, represents an 18.1% decrease in the
company’s operating income.
ENERGY LOSSES
During year 2000, Chilectra continued with its process to
control losses. The investments in new projects related to
technical measures for controlling and maintaining those
already existing were kept.
This set of measures enabled to reduce the energy loss
index, reaching 5.2% at the end of the period.
COMMERCIAL ACTIVITY
The number of customers reached 1,261,544 at
December 31, 2000, which represents a 1.9% increase as
compared to 1999.
Chilectra has consolidated its position in the energy
distribution market, reaching leading efficiency levels in the
region.
Within the bounds of the campaign to introduce
the electric energy as the best solution, both on a
IDENTIFICATION OF THE COMPANY
Corporate name
Chilectra S.A
Type of company
Limited Liability
Stock Company
Tax register number
96,524,320-8
Address
Santa Rosa N°76
Santiago, Chile
Telephone
(56-2) 675 2000
Fax
(56-2) 675 2999
Web site
www.chilectra.cl
E-mail
rrpp@chilectra.cl
Securities register number
N°321
External auditors
Arthur Andersen – Langton Clarke
Total number of shares
366,045,401
Subscribed and paid-in capital
(ThCh$) 265,666,994
Vice-Chairman
José Fernández
Participation of Enersis
(direct and indirect)
98.0%
Corporate purpose
Distribution, transmission,
purchase and sale of
hydraulic, thermal, or any
other form of electric energy.
BOARD OF DIRECTORS
Chairman
Jorge Rosenblut
Directors
Enrique García
Chief Executive Officer of Enersis
Juan Domínguez
Adj. Chief Executive Officer of Enersis
Álvaro Quiralte
Hernán Errázuriz
Pedro Buttazzoni
Chief Executive Officer
Julio Valenzuela
5
5
3
3
/
4
3
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Santiago, Chile
technological and ecological basis, a sales plan of new
generate instances for recreational activities in low-income
product to satisfy the customers’ needs was implemented
sectors (lightning of sports facilities; construction of
during 2000. Among said new products are heat pumps,
community centers and gyms; implementation of fire
air conditioning and electric thermoses. The purpose is to
stations, etc).
diversify the use of electricity among our customers by
incorporating clean and safe energy where other energy
Furthermore, an agreement between the Detective Police
sources have dominated the market.
Department and Chilectra was subscribed to advertise
Chilectra has approached the community through a
side of the electric bills. Together with the
program focused on the community within its area
implementation of the Braille Bill for the blind
of concession. The purpose of this plan has been to
customers.
the pictures of lost children on the back
FINANCIAL INFORMATION (Thousand Ch$ as of December 2000)
5
5
3
3
/
4
3
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Río Maipo
OPERATING ACTIVITY
Río Maipo is the fourth largest electric energy distribution
company in Chile. Its concession area comprises the
boroughs of San José de Maipo, Puente Alto, La Pintana,
SALES AND PURCHASES OF ENERGY
At December 31, 2000, the physical sales of energy
reached 1,191 GWh, representing a 13.4% increase as
compared to the identical period during 1999. From this
total, 44.5% corresponds to residential sales, 6.3% to
the industrial sector, 40.2% to the commercial sector and
9.0% to other sectors.
During year 2000, Río Maipo purchased energy from
Gener and Chilectra. The maximum demand, 223 MW,
El Bosque, San Bernardo, Calera de Tango, Isla de Maipo,
occurred in December.
Talagante, Peñaflor, Padre Hurtado and Curacaví, serving
a population of about 1,300,000 people, in 11 boroughs
over an area of 1,500 km2.
TARIFF SETTING PROCESS
Enersis its main stockholder with 98.4% of the
ownership, after purchasing an additional 14.7% of the
shares through a Public Tender Offer in November 2000.
The electricity rates are set every four years. The
latest Tariff Setting Process occurred in year 2000 which
culminated with the issuance of Decree No 632 of the
Ministry of Economy, Development and Reconstruction.
ENERGY LOSSES
During year 2000, Río Maipo proceeded with its efforts
to reduce losses, anticipating the execution of the
investments contemplated for that year, which were
completed during the first half, and developing additional
investments during the second half. Likewise, the
effectiveness levels of the theft control were improved,
enabling to reduce the energy loss index to 5.4% at the
end of this period.
7
7
3
3
/
6
3
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
IDENTIFICATION OF THE COMPANY
Corporate name
Compañía Eléctrica
del Río Maipo S.A.
Type of company
Limited Liability
Stock Company
Tax register number
96,557,330-5
Address
Buenos Aires N°720,
San Bernardo, Chile
Telephone
(56-2) 858 5858
Fax
(56-2) 859 1859
E-mail
riomaipo@rmaipo.enersis.cl
Securities register number
N°345
External auditors
Arthur Andersen –
Langton Clarke
Total number of shares
360,613,552
Subscribed and paid-in capital
(ThCh$) 14,561,360
Participation of Enersis
(direct and indirect)
98.4%
Corporate purpose (abstract)
Operate the distribution and
sale of thermal and hydraulic
electric energy, or energy from
any other source.
BOARD OF DIRECTORS
Chairman
Alberto López
(Business Executive Officer
of Enersis)
Vice-Chairman
Pantaleón Calvo
Directors
Julio Valenzuela
Jorge Claro
Rolando Hechenleitner
Chief Executive Officer
Alejandro Gómez
COMMERCIAL ACTIVITY
ones, during year 2000 various extension works were
executed, as well as medium tension line reinforcements
At December 31, 2000, the company’s customers totaled
and distribution substations .
287,132, which represents an increase of 4.7% as
compared to the same period in 1999. From that figure,
Río Maipo aims its commercial work at achieving
96.2% are residential customers, 2.1% are commercial
excellence in service quality and service to its residential
customers and the remaining 1.7% corresponds to
and industrial customers. In connection to the latter
industrial and other customers.
mentioned, and due to the successful experience of
During year 2000, Río Maipo executed various projects
continued to develop. This unit is dependent of the Large
previous years, during year 2000 the New Businesses unit
intended to guarantee an adequate service quality to
Customers Area.
customers. For this reason an specifically in order to
reduce the number of interruptions in the supply and the
The management and coordination of all the new special
duration of same, various technical works and innovations
services provided by the company to its customers has
were carried out.
been expanded with new horizons, among which are
the sale, installation and maintenance of equipment, the
Additionally, in order to process requests on new
technical inspection of industrial plants,
customers and increases in the power of the existing
measurements of harmonics, projects
and construction of works.
FINANCIAL INFORMATION (Thousand Ch$ as of December 2000)
7
7
3
3
/
6
3
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Edesur
DISTRILEC INVERSORA S.A.
OWNERSHIP STRUCTURE OF THE COMPANY
In July 1992 and as a result of an international
public bidding process, 51% of Edesur’s ownership was
awarded to Distrilec Inversora S.A.
In December 1995, Enersis Group increased its direct
and indirect interest in Edesur through the purchase of
39% of the company that was owned by the Argentinean
Government, thus becoming in the Group with the largest
stock ownership and controller.
On March 31, 2000, Edesur completed the operation
of redemption of Class “C” shares of the Participant
Ownership Program, representing 10% of the corporate
capital of the distribution company . Enersis Group
because of said redemption appoints an additional
Director in Edesur’s class ¨ B ¨.
As a consequence of such variations, the ownership
structure of Edesur and Distrilec Inversora S.A. is as
follows:
EDESUR
9
9
3
3
/
8
3
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
IDENTIFICATION OF THE COMPANY
Corporate name
Empresa Distribuidora Sur S.A.
E-mail
servicio@edesur.com.ar
Type of company
Limited Liability
Stock Company
Address
San José N°140,
Buenos Aires, Argentina
Telephone
(54-11) 4370 3700
Fax
(54-11) 4381 0708
Web site
www.edesur.com.ar
External auditors
Arthur Andersen -
Pistrelli Díaz y Asociados
Total number of shares
898,585,028
Subscribed and paid-in capital
(ThCh$) 546,108,328
Participation of Enersis
(direct and indirect)
64.3%
OPERATING ACTIVITY
Edesur’s main purpose is the distribution and
commercialization of electric energy in the southern
area of Buenos Aires, comprising two thirds of the
Federal Capital and twelve districts in the Province of
Buenos Aires, which represents a total concession area
of 3,309 km2. Chilectra has been Edesur’s exclusive
operator in accordance with the bidding condition since
1992.
SALES AND PURCHASES OF ENERGY
The physical sales of energy during the period reached
12,597 GWh and the maximum power recorded during
the year reached 2,593 MW, representing a 2.2% and
9,5% increase respectively as compared to 1999.
During the year the respective supply contracts with
Central Puerto y Central Costanera expired, and Edesur
purchased the entire demand in the Wholesale Electric
Market.
TARIFF SETTING PROCESS
Pursuant to the concession contract, in September 2002
the first review of the initial tariffs shall take place. The
Corporate purpose
Distribution and marketing of
electric energy and related
operations.
BOARD OF DIRECTORS
Chairman
Rafael Fernández
Directors
Enrique García
Chief Executive Officer of Enersis
Mariano Grondona
Rafael Arias
Tadeo Perich
Marcelo Silva
Jorge Ortúzar
Manuel Benites
Sustituting Directors
Domingo Valdés
Legal Counsel of Enersis
Alan Arntsen
Augustina Monferran
Horacio Babino
Juan Verbitsky
Santiago Direaux
Mónica Diskin
Pedro Aramburu
Chief Executive Officer
José Rovira
Buenos Aires, Argentina
tariffs were initially set for a period of ten years. One
an exact comparison between the indices of the previous
year in advance, Edesur must submit to the National
years and that of the last period.
Electricity Regulating Entity (ENRE) a proposal for the new
tariff structure. The ENRE shall analyze such proposal and
COMMERCIAL ACTIVITY
another proposal submitted by an independent consultant
to be contracted by said entity, and shall define the tariffs
The total number of customers served by Edesur as
to be applied until 2007.
ENERGY LOSSES
During year 2000, Edesur has developed all of the plans
and projects aimed at controlling energy losses. However,
during this period, the energy losses interrupted the
falling tendency reaching an annual index of 10.3%.
Among the causes of this adverse evolution is the social
situation characterized by an increase in the levels of
poverty and the high rates of unemployment.
It is also important to point out that from year 2000 the
methodology to calculate the index of energy losses has
been changed. The change consisted in considering
the energy by consumption not recorded as part of the
invoiced energy, and the estimation of the energy read
in meters was included for the structuring of the periodic
energetic balance. This methodology change prevents
at December 31, 2000 was 2,108,472. From this total,
86.3% are residential customers, 13.4% are general
customers and the remaining 0.3% corresponds to large
consumers.
In year 2000, Edesur made major investments tending
to improve the quality of service and the conditions of
safety of the installations, such as the construction of new
substations, the expansion of substations and networks,
various technological innovations, etc.
During the year 2000, the commercial activity was aimed
at consolidating its position in view of the future changes
in the Argentinean electric market, and the strengthening of
the corporate image change started during the previous
year. All the foregoing without losing sight of the traditional
variables of the business; improvement of the service
quality, control of losses and past dues and improvement
of the efficiency of the management.
FINANCIAL INFORMATION (Thousand Ch$ as of December 2000)
9
9
3
3
/
8
3
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Edelnor
OPERATING ACTIVITY
Edelnor is the concession holding company of the public
electricity service for the north part of Metropolitan Lima
and the Constitutional Province of Callao, as well as for
the provinces of Huaura, Huaral, Barranca and Oyón.
OWNERSHIP STRUCTURE OF THE COMPANY
It serves 52 districts on an exclusive basis and shares
another 5 districts with the distribution company for the
As of December 31, 2000 Edelnor’s domestic investors
south part.
had a 99,8% participation, while the foreign ones had the
remaining 0.2%.
In the Metropolitan Area, Edelnor’s concession mainly
comprises the industrial zone of Lima and some
As a consequence of said variations, the ownership
populated districts of the city. The concession area
structure of Edelnor and Inversiones Distrilima S.A. is as
awarded to Edelnor extends over an area of 2,440 km2,
follows:
EDELNOR
INVERSIONES DISTRILIMA S.A.
1,838 km2 of which correspond to the north part of Lima
and Callao.
SALE AND PURCHASES OF ENERGY
The physical sales of energy in the period reached
3,583 Gwh, which represents an increase of 4.7% as
compared to 1999. From the total of energy sold, 35.8%
corresponds to residential sales, 32.8% to industrial sales,
15.2% to commercial sales and 16.2% to sales to other
sectors. Additionally, a maximum demand of 653 MW was
recorded.
During the year 2000, Edelnor, purchased energy from
four generation companies; Electroperú (45.4%), Edegel
(39.5%), Eepsa (12.0%) and Cahua (3.0%), whereas
the remaining 0.1% corresponds to self-generation of
the isolated systems, through thermal and hydraulic
generators, supplying the rural areas of the Norte Chico
zone.
IDENTIFICATION OF THE COMPANY
Corporate name
Empresa de Distribución
Eléctrica de Lima Norte S.A.A.
Type of company
Limited Liability
Stock Company
Address
Jr. Teniente César López Nº201,
Urb. Maranga, San Miguel,
Lima, Perú
Telephone
(51-1) 561 2001
Fax
(51-1) 561 0451
Web site
www.edelnor.com.pe
E-mail
enlinea@edelnor.com.pe
External auditors
Medina, Zaldívar y Asociados -
Arthur Andersen
Total number of shares
1,131,891,016
Subscribed and paid-in capital
(ThCh$) 183,586,515
Participation of Enersis
(direct and indirect)
32.4%
Corporate purpose
Engage in the activities pertaining
to the delivery of the services
of distribution, transmission and
generation of electric energy.
BOARD OF DIRECTORS
Chairman
Reynaldo Llosa
Vice-Chairman
José Hidalgo
Directors
Alberto López
Business Executive Officer of Enersis
Jesús Beoutis
Jorge Manzur
Ben Schneider
Fernando Urbina
Sustituting Directors
Fernando Font
Marciano Izquierdo
Antonio Sebater
José Milla
José Oporto
Rocío Montero
Pablo Casado
Chief Executive Officer
José Hidalgo
1
1
4
4
/
0
4
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
COMMERCIAL ACTIVITY
Edelnor’s total number of customers represents over half
the total number in Metropolitan Lima and they consume
50.2% of the city’s energy. In year 2000 the number of
clients reached 851,783, which represents an increase of
1.7% as compared to 1999.
Edelnor, interested and concerned about the wellbeing
of its customers, prepared during the entire year 2000,
standardized questionnaires to interview clients of different
socioeconomic levels who called-in the modules of
commercial service, in order to evaluate the service being
Lima, Perú
TARIFF SETTING PROCESS
The distribution tariffs remain in force for four year periods
provided as compared to that provided by other public
and may be adjusted during this period by means of
utility companies. The analysis reveals Edelnor is still ahead
updating formulas set by the CTE (Comisión de Tarifas
of other companies as far as satisfaction, image and
Eléctricas). The last tariff setting for distribution entered
service quality is concerned, with special relevance being
into force on November 1, 1997 and shall conclude on
stressed in its good customer service infrastructure.
October 31, 2001.
ENERGY LOSSES
During the year 2000, Edelnor continued to apply its
efforts in pursuit of fulfilling the needs of its clients though
a commercial strategy aimed at solving problems in an
In order to detect the sources of energy loss at supply
efficient and timely fashion. To this end, important projects
SET level and to be able to provide the company with
were conducted, some of which are: Service Centers,
reliable information in pursuit of optimizing efforts and
Customer Phone, Edelnor at Home, etc.
resources, during the year the customers have been
subject to a direct and focalized treatment, with the
Additionally, during the year major investments were
energy loss index reaching 9.9%.
made which were intended to improve the reliability
and operation of the networks and installations. This
However, said effect has not reflected due to the new
fact, along with the enhancement of the coordination in
methodology to calculate this index, which only includes
preventive tasks, on the basis of a conscientious task
the re-invoicing during a maximum period of 12 months,
regarding the management of the number and duration
non-recorded consumption is not included (CNR) and the
of the interruptions, have enabled the
estimation of the energy in meters is done on a client-to-
company to provide an improved level of
client basis over a mobile 12-month period.
service to customers.
FINANCIAL INFORMATION (Thousand Ch$ as of December 2000)
1
1
4
4
/
0
4
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Cerj
OWNERSHIP STRUCTURE
The ownership structure of Companhia de Eletricidade do
Rio de Janeiro, Cerj, is as follows:
During the year 2000, Cerj, bought electric energy mainly
from generating companies Furnas (76.3%), Itaipu (27,0)
and the remainder was self-generated.
TARIFF SETTING PROCESS
Cerj’s distribution tariffs are adjusted as set forth in
concession agreement entered into in November, 1996. In
December of each year, ANEEL reviews management and
non-management costs, in addition to the variation of the
IGP-M index for the period, determining the adjustment
value to be applied. The last adjustment, applied on
December, 2000, included a 15.9% rise to be applied as of
December 31, 2000, plus a 1.9% increment to be applied
as of February 7, 2001.
Cerj’s tariffs will be reviewed by ANEEL in December,
2003, based on the cost structure and efficiency achieved,
procedure that is conducted every four years.
OPERATING ACTIVITY
ENERGY LOSSES
Cerj distributes electric energy in most of the State of
Rio Janeiro, Brazil, serving a population of 4.1 million
inhabitants, comprising 66 municipal districts distributed
over an area of 31,741 km2.
SALES AND PURCHASES OF ENERGY
Physical energy sales in the period amounted to
7,656 GWh. Of the total energy sold in the year 2000,
44.0% corresponded to residential sales, 20.0% to the
industrial sector, 19.0% to the commercial sector and
17.0% to other sectors. In addition, peak demand totaled
1.621 MW.
IDENTIFICATION OF THE COMPANY
Company name
CERJ-Companhia de
Eletricidade do Rio de Janeiro
Type of company
Stock Company
Address
Praça Leoni Ramos, N°01 –
São Domingos, Niteroi,
Río de Janeiro, Brasil
Telephone
(55-21) 613 7000
Fax
(55-21) 613 7153
Web site
www.cerj.com.br
E-mail
cerj@cerj.com.br
External auditors
Arthur Andersen S/C
Total number of shares
1,704,025,408,820
Subscribed and paid-in capital
(ThCh$) 137,453,941
Participation of Enersis
(direct and indirect)
57.4%
Cerj is implementing loss control investment projects in
order to reduce this index. However, during this period,
the energy losses accumulated in the 12-month period
interrupted its decreasing tendency, reaching a 19.7%
annual index.
It must be noted that, among the causes for this
unfavorable evolution, as of the year 2000, the
methodology by which this index was calculated was
changed by disregarding energy from consumptions not
recorded (CNR), within the energy invoiced, and by
incorporating energy estimates on meters for carrying out
the periodical energy balance. This methodological change
Company purpose
Generation, distribution
of electric energy.
BOARD OF DIRECTORS
Chairman
Eduardo Bernini
Directors
Emilio López
Maria João Méndez
Ramón Vázquez
Adj. Business
Director of Enersis
Enrique García
Chief Executive Officer of Enersis
Ignacio Blanco
Chief Development Officer of Enersis
Fernando Nadal
Corp. Communications Director
of Enersis
Geraldo Da Rocha
José Martínez
Sustituting Directors
Juan Madrigal
Francisco Arias
Luis Goncalves
Fernando das Neves
Vacantes (5)
Chief Executive Officer
Javier Villar
3
3
4
4
/
2
4
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Río de Janeiro, Brazil
prevents an accurate comparison between indices from
In the year 2000, Cerj made importants investments
previous years and that corresponding to the last period.
in order to improve service quality, namely: the general
COMMERCIAL ACTIVITY
restructuring of Call Center, which since April has had
50 lines for providing this service; the development and
implementation of the Customer Commercial Service
The total number of Cerj’s customers during the year
Management System (GAC), which allows the on-line
2000 amounted to 1,581,001, representing a 1.4%
access to customers’ complaints from any place in the
increase with respect to 1999. Of this total, 89.7%
State ; and the implementation of the 0800 free service
is residential customers, and the remainder 10.3% is
which takes care of both commercial
comprised of industrial, commercial customers, and
requests and emergency calls.
others.
FINANCIAL INFORMATION (Thousand Ch$ as of December 2000)
3
3
4
4
/
2
4
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Coelce
INVESTLUZ S.A.
COMPANY OWNERSHIP
As from April, 1999, Coelce is operated by the
consortium Distriluz Energía Eléctrica S.A., made up
of Endesa de España, Enersis, Chilectra and Cerj. In
September of same year, the group increased its stake in
OPERATING ACTIVITY
the company by 6% through the acquisition of the shares
in the hands of investments clubs, formed by workers
Coelce’s main objective is to distribute and commercialize
when the company was privatized.
electric energy in the city of Fortaleza, State of Ceará,
representing a total concession area of approximately
In September, 1999, Distriluz Energía Eléctrica S.A. was
147,000 km2 in 84 municipal districts.
dissolved and a new controlling company, Investluz S.A.,
was created, taking over the former company. As a result
SALES AND PURCHASES OF ENERGY
of said changes, the ownership structure of Coelce and
Investluz is as follows:
COELCE
Energy sales within the period amounted to 5,894 GWh,
representing a 3.2% increase with respect of the previous
period. Of the total energy sold in the year 2000, 33.8%
corresponded to residential sales, 29.3% to the industrial
sector, 18.3% to the commercial sector, and 18.6% to
other sectors. Peak demand for the year amounted to
1,110 MW in December, an 11.1% rise with respect to
1999.
During the year 2000, Coelce bought almost all the
energy from the generating company Chesf (99.2%).
IDENTIFICATION OF THE COMPANY
Company name
Companhia Energética do Ceará
E-mail
comunicacion@coelce.com.br
Type of Company
Limited Liability
Stock Company
Address
Av. Barão de Studart No 2917,
Aldeota, BarrIo Dionísio Torres,
Fortaleza, Ceará, Brasil
Telephone
(55-85) 216 1100
Fax
(55-85) 216 1410
Web site
www.coelce.com.br
External auditors
Arthur Andersen
Total number of shares
155,710,600,088
Subscribed and paid-in capital
(ThCh$) 214,713,537
Participation of Enersis
(direct and indirect)
26.3%
Corporate purpose
Distribute and sell electric,
thermal, hydraulic energy and
of any other nature.
BOARD OF DIRECTORS
Chairman
José Mayoral
Vice-Chairman
Javier Villar
Directors
Ricardo Gómez
Ignacio Blanco
Chief Development Officer of Enersis
José Kindelán
Chief Regulation Officer of Enersis
Francisco de la Fuente
Javier Arias
Antonio Uchoa
Mauricio Balbontín
Chief Financial Officer of Enersis
José Martínez
Laércio Peixoto
Sustituting Directors
Antonio Pires
Rogério Cruz
Priscilla Sartori
Emilio López
Antonio Gouvea
Luis Goncalves
Isabel Carvalho
Antonio Vianna
Arturo Silva
Miguel del Valle
Juarez Ferreira
Chief Executive Officer
Manuel Montero
5
5
4
4
/
4
4
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
TARIFF SETTING PROCESS
Coelce’s distribution tariffs are regulated
by the Aneel Concession Contract dated
01/98 and are adjusted every 22 of April
for the review of non-management cost
increases. The last adjustment, applied
on April 22, 2000, included a 10.2%
increase plus a 1.0% rise in the rate of
contribution for social security financing
(COFINS).
On April, 2003, Aneel will review Coelce’s
costs in order to effect the first tariff
review, which will be subsequently applied
every four years.
ENERGY LOSSES
Fortaleza, Brazil
platform. In addition to the implementation of the new
commercial system, the centralized 24-hour-a-day
customer service system covering the entire Ceará
Coelce is implementing loss control investment projects in
through a 800 phone line, was put into operation.
order to reduce this index. During the year 2000, through
Commercial coverage was expanded through the
the Standardization Project, Greater Customer Projects,
implementation of the “Points of Service” project, which
etc. The energy losses accumulated in the 12 month
made it possible to extend service to the 184 municipal
period reached, as of December 2000, a 13.3% index.
districts of the State.
COMMERCIAL ACTIVITY
Further, a Coelce program was started in neighborhoods,
through mobile offices providing the poorest communities
The total number of customers served by Coelce as of
in Fortaleza and within the State with solutions, advice
December, 2000, was 1,795,824, representing a 8,7%
and educational information. Special service facilities to
increase with respect to December, 1999.
provide attention to customers with hearing problems
As for customer service, the company’s policy was
for customers with visual disabilities were implemented.
oriented towards the modernization of the information
Finally, a virtual office where Coelce’s
systems, expansion of channels to access the company
customers may get information and
services, and globalization of the commercial service
request services on the internet, was set
as well as the delivery of energy bills written in Braille
FINANCIAL INFORMATION (Thousand Ch$ as of December 2000)
up.
5
5
4
4
/
4
4
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Codensa
OWNERSHIP STRUCTURE
On September 15, 1997, Empresa de Energía de
Bogotá S.A. E.S.P., capitalized 48.5% of its ownership,
which was acquired by the consortium Luz de Bogotá,
made up of the companies Enersis, Chilectra and Endesa
Desarrollo. Subsequently, on October 23, Codensa S.A.
E.S.P. was organized.
OPERATING ACTIVITY
SALES AND PURCHASES OF ENERGY
Physical energy sales during the period amounted to
8,776 GWh representing a 3.2% increase with respect to
1999. Of the total energy sold in the year 2000, 83.0%
of it was sold on the regulated market, 11.7% on the
non-regulated market, and 4.4% to public lightning.
The energy purchase level dropped by 13% respect
to 1999 purchases. 89.2% was purchased to serve
the regulated market and 10.8% for the non-regulated
market.
The ownership structure of Codensa and of the
consortium Luz de Bogotá S.A. is as follows:
TARIFF SETTING PROCESS
CODENSA
LUZ DE BOGOTÁ S.A.
The distribution tariffs are in effect during 5 years. The
latest distribution tariff setting came into effect in 1998.
During 2001 the policies and norms to be applied in the
next 2003-2007 period shall be defined.
The service rendering unit cost was affected during 2000
due to the regulatory changes and restrictions. Because
of the validity of the new CREG resolution as of October,
100% of the restriction will be charged to the distribution
companies.
ENERGY LOSSES
At the end of the year 2000, the company recorded an
index for energy losses of 10.5%, a figure involving three
point drop with respect to the previous year’s closing.
IDENTIFICATION OF THE COMPANY
Company name
Codensa S.A. ESP
Type of Company
Public Services Company
Address
Carrera 13ª No 93-66
Bogotá, Colombia
Telephone
(571) 601 6060
Fax
(571) 601 5917
Web site
www.codensa.com.co
E-mail
yacero@codensa.com.co
External auditors
Arthur Andersen
Total number of shares
187,162,104
Subscribed and paid-in capital
(ThCh$) 882,141,517
Participation of Enersis
(direct and indirect)
22.6%
Corporate purpose
Distribution and selling electric energy,
and performance of similar, kindred,
complementary and related activities.
BOARD OF DIRECTORS
Chairman
Andrés Regué
Directors
José Kindelán
Chief Regulation Officer of Enersis
Fernando Urbina
Juan Vásquez
Adj. Business Director of Enersis
José Vargas
Carlos Sandoval
Jorge Amaya
Sustituting Directors
Marcelo Llévenes
Lucía Piedrahíta
José Inostroza
Lucio Rubio
Henry Navarro
Mario Trujillo
Jorge Pinzón
Chief Executive Officer
Marcelo Llévenes
7
7
4
4
/
6
4
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
The structure designed for the Loss Control Project, which
the customer. Two new customer service facilities opened
is based on the Technical Measure Investment Project
up, Centro Internacional and Soacha which were added to
(PIMT), Standardization Project and Greater Customer
the Regional, Center and South respectively.
Projects.
In September, 2000, the development of a new project
called “Consumption Standardization Project” was started
in order to replace 15,000 obsolete meters showing
sub-readings, as compared to those of standardized
customers, with which Codensa’s loss cut down plan was
supported.
COMMERCIAL ACTIVITY
By the end of the year 2000, the company is
selling energy to 1,802,049 customers. The number
of regulated customers rose by 55,654 and the non-
regulated customers by 43, with respect to 1999, which
is a 3.2% increase in the number of customers served
by Codensa.
Bogotá, Colombia
In accordance with the plan to become the best utility
After the goal for 1999, focusing on quality service
company and with the need of modernizing customer
improvement, was achieved, a new strategic plan
service processes, in August 2000, the Year 2000
was developed in the year 2000, centered on three
Customer Information System, a modern tool which
fundamental aspects: customer service, implementation
integrates commercial information related to customer
of new technologies, and operating efficiency.
service, invoicing, delinquency, loss control, collection
The strategic plan integrates the operating activity with
value added services to customers and financial income,
Within the implementation of the Year 2000 Customer
by optimizing all commercial resources. Customers is the
Information System, investments were made for
plan’s objective, based on efficiency and effectiveness in
the technological upgrade at the CADES providing
and management, was put into operation.
operations.
commercial services throughout the Capital District. As
a result of this project, seven CADES were incorporated
The implementation of this plan was based on
into the commercial information system, with which a
decentralization intended to have greater facilities to serve
level of service equal to that provided at the
other service facilities, was achieved.
FINANCIAL INFORMATION (Thousand Ch$ as of December 2000)
7
7
4
4
/
6
4
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Other Businesses
9
9
4
4
/
8
4
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
The coverage is extended to other
countries in Latin America
9
9
4
4
/
8
4
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
CAM
GENERAL INFORMATION
Compañía Americana de Multiservicios S.A. (CAM),
wholly owned by Enersis, is the successor in charge of
continuing the electric engineering and service activities of
Ingeniería e Inmobiliaria Manso de Velasco S.A.
It was organized in late 1999 with the purpose to
enhance and consolidate its presence in the area of
massive support services to electricity, water, gas and
telecommunications companies.
CAM has gradually consolidated its presence in the
market , with a number of work services rendered to
various public service companies that have placed it
in an outstanding level on a national basis.
On the other hand, internationally speaking, the opening
of the subsidiary companies in Colombia and Perú,
besides the already existing subsidiary in Argentina, has
enabled it to consolidate its presence in the area of
tailored associated integral service rendering to electric
distribution companies. For the year 2001, it is intended
to start this type of activities in Brazil.
MAIN ENGINEERING ACTIVITIES AND SERVICES
During the year 2000, the services platform enabling
the development of the multiple services framework was
devised. The consolidation of the network and joints
construction, besides the incorporation of the commercial
services of reading meters and delivery of bills, past
dues, cutting and replacing utility services and market
discipline, have enabled it to place itself among the main
public utility services. Thus at present, the meter-reading
services are being provided to several companies, namely
Chilectra, Chilquinta and Río Maipo and the bill delivery
service is provided to the aforementioned companies in
addition to Emos and Smartcom PCS.
As for metering, the service of quality diagnostic of the
meters installed by Chilectra, Río Maipo, Edelnor, Cerj
and Codensa was implemented, which enabled those
companies to acquire a full knowledge of the recording
being made of consumed energy and power invoiced .
In the area of engineering and major urban services,
important projects were set in place, such as the
completion of the 220 kV transmission system over
an extension of 57 km, 30 of which are located in
a high mountain area. The execution of a roadway
lighting turnkey project for the Autopista Los Libertadores.
The participation in roadway lighting engineering
IDENTIFICATION OF THE COMPANY
Corporate name
Compañía Americana de
Multiservicios S.A.
Type of company
Closed Limited Liability
Stock Company
Tax register number
96,530,650-1
Address
Tarapacá N° 934
Santiago, Chile
Telephone
(56–2) 632 5000
Fax
(56–2) 639 7608
External auditors
Arthur Andersen -
Langton Clarke
Total number of shares
29,462,263
Subscribed and paid-in capital
(ThCh$) 1,031,693
Participation of Enersis
(direct and indirect)
100%
Corporate purpose
Perform proffesional and
technical services for the
management of warehouses,
control execution of works,
measure and gauce,
start-up and maintenance
of systems, machinery and
apparatus, maintenance of
distribution and transmision
networks.
BOARD OF DIRECTORS
Chairman
Francisco Núñez
Chief Procurement Officer of Enersis
Vice-Chairman
Ernesto Silva
Director of Enersis
Directors
Víctor Jarpa
Pedro Bermejo
Chief Executive Officer
Pantaleón Calvo
1
1
5
5
/
0
5
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
and relocation of networks in the main concessions
currently under construction, along with the execution
of these works for the underground parking areas in
Providencia and Santa Lucía. As regards services for
telecommunications, four 36 and 42-meter high antennas
were erected at Chilectra’s Substations on a turnkey
basis for Smartcom PCS, and advisory services were also
provided in order to familiarize them with the formalities
and execution of joints at a national level, as well as the
support provided in the technical inspection of towers
erected by third parties.
In the area of public utility services, a massive replacement
of 90,000 water meters was carried out for Esval.
Construction works were completed involving telephone
networks, optical fiber, burying of communications
networks and multiple-pipe projects conducted on a joint
basis with Chilectra for the Municipality of Vitacura and
Providencia. Works of installation and replacement of
lighting was carried out in various boroughs of Santiago
as per the contract entered into with Chilectra. New urban
development works were carried out with nearly 19,100
electric joints, representing 65% of the market, a work that
also comprised the installation of aerial and underground
electric networks.
On an international basis, the Colombian subsidiary of
CAM was organized, after the awarding of the public
bidding process called by Codensa for the services of
laboratory, integral telemeasurement and annexed services
provided to non-regulated customers, massive installations
for new supplies and integral servicing of major customers.
Likewise, it provides the services of telemeasurement
and annexed services to non-regulated customers for the
electric trading company Enersis Energía de Colombia.
Santiago, Chile
Also, the Peruvian subsidiary of CAM was organized,
after the awarding of the laboratory services and field
services associated to major customers for Edelnor.
In Argentina, CAM’s subsidiary was awarded with the
contract of the commercial cycle for the integral servicing
of the Rivera Sur branch with 488,000 customers.
This implies providing the services of meter reading
and bill delivery, market discipline, past dues, cutting
and reconnection, installation and removal of meters,
commercial services and collection. Likewise, it was
awarded with the contract of the technical cycle for
serving the areas of Avellaneda and Quilmes. This
implies providing the services of customer complaints,
preparation of projects in LT and MT networks,
construction, maintenance and operation of aerial and
underground LT and MT networks. Both contracts are for
a three year period.
In Brazil, the subsidiary CAM Brasil Multiservicios Ltda.
was organized during December 2000. It is expected to
be in operations by the beginning of year 2001, providing
laboratory and field services.
FINANCIAL INFORMATION (Thousand Ch$ as of December 2000)
1
1
5
5
/
0
5
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Synapsis
GENERAL INFORMATION
For Synapsis, a company 100% owned by the Enersis
Group, the year 2000 was the year of its consolidation as
a supplier of integral services to public utility companies in
Latin America, especially companies of the Enersis Group,
all of the foregoing in the framework of the execution of
the Systems Master Plan as a part of the Genesis Project.
OPERATING ACTIVITY
Hard work was conducted during the year in pursuit
of said project, which implied the transfer of personnel
from subsidiary companies, negotiation of contracts for
telecommunications and control systems, participation
in bidding processes with the purpose of providing
its customers both within the Group and external, the
services of data processing, telecommunications and
control systems.
In this same context, the tasks began for the execution of
the projects defined as corporate; relevant in this context
is the organization of Synapsis Perú, the improvement
of the data processing center in Chile, the corporate
backbone, the corporate intranet consisting in setting
up a network comprising the companies of the Group
in America, joining Endesa España’s Intranet, the CDP
convergence project the purpose of which is centralizing
the operations of the CPDs for all the companies within
a country around one CPD, the project of standardized
commercial synergy, which seeks to incorporate the best
practices and the latest technologies into said product
and the Setting Up of the SIE2000A (a SAP R/3-based
solution) at a corporate level in Chile.
During the year, Synapsis was awarded several important
outsourcing services contracts and executed major
projects with state-of-the-art technology which it set up
with optimized timing and resources.
In Edelnor, Perú, the CDP outsourcing services started.
In Codensa, Colombia, it was awarded with the bidding
process involving the outsourcing of data processing
services, telecommunications and control systems. The
commercial management synergy solution setting up
was completed, and the services of processing and
maintenance of said solution began.
In Coelce, Brazil, it was awarded with the project
comprising the setting up of the distribution technical
systems, and by the end of the year, it was awarded
with the contract for the outsourcing services, which shall
commence in January of year 2001.
IDENTIFICATION OF THE COMPANY
Corporate name
Synapsis S.A.
Type of company
Closed Limited Liability
Stock Company
Tax register number
96,529,420-1
Address
Catedral N° 1284,
Santiago, Chile
Telephone
(56–2) 632 1240
Fax
(56–2) 696 5999
Web site
www.synapsis-sa.com
E-mail
synapsis@synapsis.enersis.cl
External auditors
Arthur Andersen -
Langton Clarke
Total number of shares
10,570,778
Subscribed and paid-in capital
(ThCh$) 3,943,580
Participation of Enersis
(direct and indirect)
100%
Corporate purpose
Supply and sell services and
equipment related to
computers and data processing
for public utility companies
and others, both national and
foreign.
BOARD OF DIRECTORS
Chairman
Cristóbal Sánchez
Chief Information Systems Officer
of Enersis
Directors
Emilio García
Chief Diversification Officer of Enersis
Francisco Núñez
Chief Procurement Officer of Enersis
Chief Executive Officer
Víctor Muñoz
3
3
5
5
/
2
5
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
service.
In Edenor, Argentina, it was awarded with the
The year ends with the beginning of the project
outsourcing of the data processing center.
comprising the renewal of Endesa Chile’s, Transelec’s,
In Esval, Chile, it completed the setting up of the
Emos of the project for the merger and upgrading of the
awarded solutions (Commercial Management Synergy,
commercial systems of Emos and Aguas Cordillera.
SIE2000A, Human Resources Synergy, Shares Synergy,
etc.) to support the overall management of the company
This year’s success for Synapsis lies on its technological
Chilectra’s and Río Maipo’s SCADA, the awarding by
and started the outsourcing services.
strategy, its broad knowledge of both the public utility
business and the outsourcing business and the vast
In the Depósito Central de Valores (DCV), Chile, it was
experience of the professionals that worked for Synapsis
awarded with a services contract for the processing of
and those who were transferred from the subsidiary
the shares synergy.
companies as a consequence of the execution of the
systems master plan and the services outsourcing
In Smartcom, Chile, the CPD outsourcing services were
systems, a sound policy of alliances, which caused it to
contracted, a project was started for the setting up of
be awarded with important contracts. By the end of the
SIE2000A and it was awarded with a Datawarehouse
year its main task shall be to work
project.
in pursuit of upgrading its levels of
FINANCIAL INFORMATION (Thousand Ch$ as of December 2000)
3
3
5
5
/
2
5
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Diprel
OPERATING ACTIVITY
During the year 2000, Diprel experienced a boost in
its results by approximately 58%, basically explained by
the results obtained abroad. Although the economic crisis
undergone by the country has restrained an expedite
recovery of the businesses intended for the sectors of
construction, housing and industry, as a counteraction,
important benefits have been achieved in the reduction of
costs in the purchase of materials, contracting of works
and services and in administrative expenses.
Likewise, the international business experienced
dramatic changes, from exporters to domestic operators
in Perú and Colombia, and supporting the management of
supplies of the Enersis subsidiaries in Brazil.
Always within the mission to optimize the functions of
supply, purchase and contracts in the Enersis Group,
during the year 2000 important goals were set, namely,
attaining a global reduction of at least 17% in the prices of
costs and reaching an important reduction of stocks at the
Group’s level, tasks that have been achieved by 100%.
The integral management of provision in Chile was
consolidated; it includes the management of purchases,
contracts and services, administration, management and
control of the warehouses of Chilectra, Río Maipo, CAM,
Synapsis and Colina.
In this same fashion, the creation of subsidiary companies
in Perú and Colombia was achieved. These companies
are in charge of the management of purchases and
contracts, stock and warehouse management of the
electric companies comprising the Enersis Group in such
locations.
In the area of domestic businesses, the important
participation in the Public Lighting projects is highlighted,
with relevance being in the projects carried out in the
boroughs of Santiago, Ñuñoa, La Reina, Florida and
Macul.
It is worthy to point out the company’s continuous
concern for labor accidents, an effort which translated in
the Year 2000’s Merit Award 2000 being conferred to the
company by the Asociación Chilena de Seguridad.
In order to reach higher levels of productivity, it was
necessary to dismiss 14% of the personnel, a process
that was carried out in accordance with the policies
set in place by the Group, providing economic support
IDENTIFICATION OF THE COMPANY
Corporate name
Distribuidora de Productos
Eléctricos S.A.
Type of company
Closed Limited Liability
Stock Company
Tax register number
96,543,670-7
Address
Bulnes N° 1238
Santiago, Chile
Telephone
(56-2) 688 4502
Fax
(56-2) 681 2219
Web site
www.diprel.com
E-mail
info@diprel.enersis.cl
External auditors
Arthur Andersen -
Langton Clarke
Total number of shares
4,362,440
Subscribed and paid-in capital
(ThCh$) 1,540,344
BOARD OF DIRECTORS
Chairman
Francisco Núñez
Chief Procurement Officer of Enersis
Participation of Enersis
(direct and indirect)
100%
Corporate purpose
Purchase, sale, import and
distribution of products related
to electricity.
Directors
Pantaleón Calvo
Ernesto Silva
Director of Enersis
Chief Executive Officer
Eduardo López
5
5
5
5
/
4
5
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
5
5
5
5
/
4
5
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
to alleviate the effects of the dismissals, somehow
Sales Management Department and the Purchase
guaranteeing sufficient levels of employability.
and Contracts Management Department were created,
thereby taking advantage of both units’ synergies in
The internal restructuring of the company was
everything in connection to bidding processes, contract
carried out as a consequence of the creation of
management, price negotiation and others.
Enersis’ Supply Management Department. Thus the
FINANCIAL INFORMATION (Thousand Ch$ as of December 2000)
Manso de Velasco
REAL ESTATE PROJECTS
ENEA
The project has been consolidated strengthened by
important elements, such as the formalization of urban
soil use classification of 57 additional hectares west of
Av. Américo Vespucio and the generation of important
road developments in the neighborhood that evidently the
project’s connectivity.
SANTUARIO DEL VALLE
During the year 2000, the Santuario del Valle project
It corresponds to a real property development on a
mainly consisted in the marketing of single-family
1,000 hectares area strategically located in West Santiago,
residential lots of land and macro-lots, with reported sales
borough of Pudahuel, in the vicinity of the International
in the amount of US$43 million.
Airport and integrated to important structural highways
of the Metropolitan Region. At present, Phase I is being
Insofar as macro land lots is concerned, the surface
developed; it corresponds to the concept of Industrial and
sold during 2000 rose to 150.8 hectares, a figure
Business Park, notwithstanding the sale of other areas for
that represents 88.2% of the land lots whose
housing purposes.
commercialization has concentrated on third parties’
In year 2000’s fiscal period, ENEA featured important
development.
progress in commercial terms and in the conduct of ifs
As for single-family residential lots, the accumulated sales
urban development works. Thus , ENEA was able to
amount to 473 lots, a figure representing 85.4% of the
commercialize over 30 hectares of land with associated
total available in Sectors 1 through 6 of the First Stage of
income in excess of US$10 million.
the subdivision. To this respect, it is worthy to point out
that during the third quarter of year 2000 the marketing of
68 lots corresponding to Sector 6 began.
As for the general urban development works
corresponding to the First Stage of Santuario del Valle,
they feature a progress rate that exceeds 95%.
TAPIHUE
The Tapihue project contemplates properties
corresponding to lands associated to the farms Tapihue,
Amancay – lot B – and La Petaca. Said properties,
Enea Project
IDENTIFICATION OF THE COMPANY
Corporate name
Inmobiliaria Manso de Velasco S.A.
Fax
(56–2) 378 4702
Subscribed and paid-in capital
(ThCh$) 5,848,651
BOARD OF DIRECTORS
Type of company
Closed Limited Liability
Stock Company
Tax register number
96,909,280-8
Address
Av. Kennedy No 5454,
Vitacura, Santiago
Telephone
(56–2) 378 4700
Web site
www.mvelasco.cl
E-mail
gercom@mvelasco.enersis.cl
External auditorsr
Arthur Andersen -
Langton Clarke
Total number of shares
29.462.263
Participation of Enersis
(direct and indirect)
100%
Corporate purpose
Buy, sell, parcel, subdivide,
market and commercially
operate, at any title, all types
of real property, either on its
own behalf or on behalf of third
parties, invest the company’s
funds in all kinds of assets, real
property or securities.
Chairman
Emilio García
Chief Diversification Officer of Enersis
Directors
Victor Jarpa
Jorge Alé
Diversification Manager of Enersis
Chief Executive Officer
Andrés Salas
7
7
5
5
/
6
5
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Santuario del Valle Project
as a whole, involve an area of 7,302 hectares in the
accumulated incomes in the amount of US$4.5 million
borough of Til-Til, province of Chacabuco, Metropolitan
during the year 2000.
Region, and are classified as ZDUC (Zona de Desarrollo
Urbano Condicionado) per the Santiago Metropolitan
It is worth pointing out that during the year 2000 period
Urban Development Plan.
PROPERTY LEASE
a property disinvestment process began caused by the
restructuring and new strategic and business definition
of Enersis. This way, the sale of important properties
was carried out which yielded incomes in the amount of
As part of its real estate business, Manso de Velasco
US$1.7 million.
manages a total of 47,892 m2 built, corresponding
to buildings, stores and offices, which generated
MANSO DE VELASCO
FINANCIAL INFORMATION (Thousand Ch$ as of December 2000)
7
7
5
5
/
6
5
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Execution of this Annual Report
Pursuant to General Rule N º 30 issued by the Superintendency of Securities and Insurance, the annual report herein was
approved and signed by the members of the board of Directors of the Company.
Alfredo Llorente
Chairman
Rafael Miranda
Vice-chairman
Ernesto Silva
Director
Luis Rivera
Director
Hernan Somerville
Director
José Fesser
Director
Eugenio Tironi
Director
Santiago, March 2, 2001
9
9
5
5
/
8
5
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Identification of Others Subsidiaries and Related Companies
Distrilec Inversora S.A.
Enersis de Argentina S.A.
Enersis International Limited
Corporate name
Distrilec Inversora S.A.
Type of company
Foreing Limited Liability
Stock Company
Address
San José Nº 140 (1076)
Buenos Aires - Argentina
Telephone
(54-11) 4370 3700
Fax
(54-11) 4381 0708
External auditors
Arthur Andersen/
Pistrelli Díaz y Asoc.
Corporate name
Enersis de Argentina S.A.
Type of company
Foreing Limited Liability
Stock Company
Address
Suipacha N° 1111 Piso 18,
Buenos Aires, Argentina
Telephone
(54-1) 315 9959
Fax
(54-1) 311 2317
External auditors
Arthur Andersen/
Pistrelli Díaz y Asociados
Corporate name
Enersis International Limited
Type of company
Foreing Limited Liability
Stock Company
Address
P.O. BOX 309,
Ugland House, South Church St,
Grand Cayman, Cayman Islands
Telephone
(345) 949 8066
Fax
(345) 949 8080
External auditors
Arthur Andersen
Subscribed and paid-in capital
(ThCh$) 291,130,604
Subscribed and paid-in capital
(ThCh$) 77,937
Subscribed and paid-in capital
(ThCh$) 192,744,152
Participation of Enersis
(direct and indirect)
100%
Corporate purpose
Any activity related
to energy or fuels.
BOARD OF DIRECTORS
Chairman
José Palomo
Vice-Chairman
Juan Domínguez
Adj. Chief Executive Officer
of Enersis
Director
Leopoldo López
Participation of Enersis
(direct and indirect)
50.7%
Participation of Enersis
(direct and indirect)
100%
Corporate purpose
Participate on its own behalf or
on behalf of third parties in the sold
of shares of Edesur and Edenor.
Corporate purpose
Primarily finacial, performing
any type of financial or
investment activity.
BOARD OF DIRECTORS
BOARD OF DIRECTORS
Chairman
Enrique García
Chief Executive Officer of Enersis
Chairman
Enrique García
Chief Executive Officer of Enersis
Vice-Chairman
Rafael Fernández
Directors
Manuel Benites
Mariano Grondona
Jorge Ortúzar
Marcelo Silva
Horacio Babino
Carlos Cuirolo
Tadeo Perich
Juan Verbitsky
Sustituting Directors
Santiago Daireaux
Domingo Valdés
Legal Counsel of Enersis
Agustina Monferrán
Mónica Diskin
Jorge Casagrande
Darío Lamanna
Mario Lagrosa
Antonello Tramonti
Jorge Barros
Pedro Aramburu
Vice-Chairman
Juan Domínguez
Adj. Chief Executive Officer
of Enersis
Directors
Domindo Valdés
Legal Counsel of Enersis
Mariano Grondona
Alan Arntsen
Betina Di Croce
María Justo
Sustituting Directors
Martín Madrid
Planinng & Control Executive
Officer of Enersis
Fernando Nadal
Corp. Comunications Director
of Enersis
Manuel Benites
Alberto López
Business Executive Officer
of Enersis
Vacantes (3)
9
9
5
5
/
8
5
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Enersis Investment S.A.
Electric Investment S.A.
Corporate name
Enersis Investment S.A.
Type of company
Foreing Limited Liability
Stock Company
Corporate name
Electric Investment S.A.
Type of company
Foreing Limited Liability
Stock Company
Address
Av. Samuel Lewis y Calle Nº 53,
Edificio Omega, Mezzanine,
Panamá, República de Panamá
Address
Av. Samuel Lewis y Calle Nº 53,
Edificio Omega, Mezzanine,
Panamá, República de Panamá
Telephone
(507) 263 5333
Fax
(507) 263 6983
External auditors
Arthur Andersen
Telephone
(507) 263 5333
Fax
(507) 263 6983
External auditors
Arthur Andersen
Subscribed and paid-in capital
(ThCh$) 291,883,141
Subscribed and paid-in capital
(ThCh$) 16,579,077
Participation of Enersis
(direct and indirect)
100%
Corporate purpose
Any activity related
to energy or fuels.
Participation of Enersis
(direct and indirect)
100%
Corporate purpose
Any activity related
to energy or fuels.
BOARD OF DIRECTORS
BOARD OF DIRECTORS
Chairman
Enrique García
Chief Executive Officer of Enersis
Chairman
Enrique García
Chief Executive Officer of Enersis
Vice-Chairman
Juan Domínguez
Adj. Chief Executive Officer
of Enersis
Directors
Domindo Valdés
Legal Counsel of Enersis
Vice-Chairman
Juan Domínguez
Adj. Chief Executive Officer
of Enersis
Directors
Domindo Valdés Prieto
Legal Counsel of Enersis
Sustituting Directors
Alberto López
Business Executive Officer
of Enersis
Martín Madrid
Planinng & Control Executive
Officer of Enersis
Fernando Nadal
Corp. Comunications Director
of Enersis
1
1
6
6
/
0
6
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Empresa Eléctrica de Panamá S.A.
Interocean Development Inc.
Corporate name
Empresa Eléctrica de Panamá S.A.
Corporate name
Interocean Development Inc.
Type of company
Foreing Limited Liability
Stock Company
Type of company
Foreing Limited Liability
Stock Company
Address
Av. Samuel Lewis y Calle Nº 53,
Edificio Omega, Mezzanine,
Panamá, República de Panamá
Address
Av. Samuel Lewis y Calle Nº53,
Edificio Omega, Mezzanine,
Panamá, República de Panamá
Telephone
(507) 263 5333
Fax
(507) 263 6983
External auditors
Arthur Andersen
Telephone
(507) 263 5333
Fax
(507) 263 6983
External auditors
Arthur Andersen
Subscribed and paid-in capital
(ThCh$) 131,338,995
Subscribed and paid-in capital
(ThCh$) 123,450,168
Participation of Enersis
(direct and indirect)
99.6%
Corporate purpose
Any activity related
to energy or fuels.
Participation of Enersis
(direct and indirect)
100%
Corporate purpose
Any activity related
to energy or fuels.
BOARD OF DIRECTORS
BOARD OF DIRECTORS
Chairman
Enrique García
Chief Executive Officer of Enersis
Chairman
Enrique García
Chief Executive Officer of Enersis
Vice-Chairman
Juan Domínguez
Adj. Chief Executive Officer
of Enersis
Directors
Domindo Valdés
Legal Counsel of Enersis
Vice-Chairman
Juan Domínguez
Adj. Chief Executive Officer
of Enersis
Directors
Domindo Valdés
Legal Counsel of Enersis
Sustituting Directors
Alberto López
Business Executive Officer of Enersis
Martín Madrid
Planinng & Control Executive
Officer of Enersis
Fernando Nadal
Corp. Comunications Director
of Enersis
Sustituting Directors
Alberto López
Business Executive Officer of Enersis
Martín Madrid
Planinng & Control Executive
Officer of Enersis
Fernando Nadal
Corp. Comunications Director
of Enersis
1
1
6
6
/
0
6
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Inversiones Distrilima S.A.
Corporate name
Inversiones Distrilima S.A.
Type of company
Foreing Limited Liability
Stock Company
Luz de Bogotá S.A.
Corporate name
Luz de Bogotá S.A.
Type of company
Foreing Limited Liability
Stock Company
Address
Tnte. César López Rojas Nº 201,
Urbanización Maranga, San Miguel,
Lima, Perú
Address
Carrera 7 Nº 71-52, Piso 15 Of. 1502,
Bogotá, Colombia
Investluz S.A.
Corporate name
Investluz S.A.
Type of company
Foreing Limited Liability
Stock Company
Address
Av. Barao de Studart No 2917,
Aldeota, Cep 60.127-900,
Fortaleza, Ceará, Brasil
Telephone
(085) 216 1123
Fax
(085) 216 1423
External auditors
Arthur Andersen
Telephone
(51-1) 561 1604
Fax
(51-1) 561 0174
External auditors
Arthur Andersen
Telephone
(571) 312 2473
Fax
(571) 312 2573
External auditors
Arthur Andersen
Subscribed and paid-in capital
(ThCh$) 176,010,181
Participation of Enersis
(direct and indirect)
44.2%
Corporate purpose
Any activity related
to energy or fuels.
BOARD OF DIRECTORS
Chairman
Andrés Regué
Directors
José Kindelán
Chief Regulation Officer
of Enersis
Fernando Urbina
Juan Vázquez
Energy Business Director
of Enersis
Sustituting Directors
Marcelo Llévenes
Lucía Piedrahíta
José Inostroza
Lucio Rubio
Subscribed and paid-in capital
(ThCh$) 499,531,166
Subscribed and paid-in capital
(ThCh$) 106,415,219
Participation of Enersis
(direct and indirect)
46.5%
Corporate purpose
Participate in the capital
stock of Coelce or in other
companies in Brazil and abroad
either as partner or stockholder.
MANAGERS COMMITTEE
(Without Board of Directors)
Chairman Director
Manuel Montero
Vice-Chairman Financial Director
Juan Garade
Executive Officer Director
Lucía de Souza
Participation of Enersis
(direct and indirect)
53.9%
Corporate purpose
Make investments in other
companies, in special those
related to the distribution and
generation of electric energy.
BOARD OF DIRECTORS
Chairman
José Kindelán
Chief Regulation Officer
of Enersis
Directors
Ricardo Alvial
Chief Inv. & Risk Officer
of Enersis
José Hidalgo
Alberto López
Business Executive Officer
of Enersis
Fernando Urbina
José Chueca
Reynaldo Llosa
Sustituting Directors
José Alonso
Narciso López
Marciano Izquierdo
Pablo Casado
Walter Piazza
Fernando Fort
Vacante (1)
2
6
/
2
6
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Enersis S.A. and Subsidiaries Audited Financial Statements
Audited Consolidated Financial Statements for the years ended December 31, 1999 and 2000.
INDEX
Accounts Inspector’s Report
Report of Independent Accountants
Consolidated Balance Sheets
as of December 31, 1999 and 2000
Consolidated Statements of Income
for the years ended December 31, 1999 and 2000
Consolidated Statements of Changes in Shareholders’ Equity
for the years ended December 31, 1999 and 2000
Consolidated Statements of Cash Flows
for the years ended December 31, 1999 and 2000
Notes to the Consolidated Financial Statements
Consolidated Management Analysis
Consolidated Relevant Facts
64
65
66
68
69
70
72
132
142
Application of Constant Chilean Pesos
The consolidated financial statements included herein have been restated
for general price-level changes and expressed in constant Chilean pesos of
December 31, 2000 purchasing power.
3
6
,
s Report
Accounts Inspector
Pursuant to the provisions in law No. 18,046 on Limited Liability Stock Companies and in compliance with the
mandate granted by the Ordinary Shareholders’ Meeting held on April 06, 2000, we have examined the Consolidated
Financial Statements of Enersis S.A. for period between January 1 and December 31, 2000.
Our assignment was focused on verifying, on a selecyive basis, the coincidence of the figures presented in the
Financial Statements with the official records of the Company and its subsidiaries and to such and end we compared
the figures presented in the ledger with the grouping and classificaton worksheets. To subsequently ascertain if
these amounts which are the balances of accounts of the same nature match with those included in the Financial
Statements, a revision which entailed no objections.
Marcela Araya
Accounts Inspector
Marco Acevedo
Accounts Inspector
Santiago, January 19, 2001
5
5
6
6
/
4
6
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Report of Independent Accountants
(Translation of a report originally issued in Spanish – See Note 2 to the consolidated financial statements)
To the Shareholders of Enersis S.A.:
We have audited the accompanying consolidated balance sheets of Enersis S.A. and Subsidiaries (the “Company”) as
of December 31, 1999 and 2000, and the related consolidated statements of income, shareholders’ equity and cash
flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these financial statements based on our audits. We did not audit the financial
statements of the subsidiary Endesa – Chile S.A., whose total assets and revenues constitute 30 percent and 18 percent,
respectively, of the related consolidated totals but were furnished with the report of other accountants of their audit
of those statements.
We conducted our audits in accordance with generally accepted auditing standards in the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audits and
the report of other auditors provide a reasonable basis for our opinion.
In our opinion, based on our audits and the report of other auditors, the financial statements referred to above present
fairly, in all material respects, the financial position of Enersis S.A. and Subsidiaries as of December 31, 1999 and 2000,
and the results of its operations and its cash flows for the years then ended in conformity with generally accepted
accounting principles in Chile.
Accounting practices used by the Company in preparing the accompanying consolidated financial statements conform
with generally accepted accounting principles in Chile, but do not conform with accounting principles generally accepted
in the United States. A reconciliation of consolidated net income and shareholders’ equity under accounting principles
generally accepted in Chile to the corresponding amounts that would be reported in accordance with United States
generally accepted accounting principles, except for the omissions, as allowed pursuant to Item 17 of SEC Form 20-F,
of adjustments necessary to eliminate the effect of price-level changes and the translation of non-Chilean operations
described in Notes 2 (c), is set forth in Note 31 to these financial statements.
Cristián Bastián E.
ARTHUR ANDERSEN – LANGTON CLARKE
Santiago (Chile)
January 30, 2001
(except for Notes 2 (a), 2 (c) and 31 for which the dates are February 23, 2001)
5
5
6
6
/
4
6
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Audited Consolidated Balance Sheets
Translation of financial statements originally issued in Spanish – See Note 2
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of December 31, 2000,
and thousands of US dollars)
ASSETS
Current Assets:
Cash
Time deposits
Marketable securities
Accounts receivable, net of allowance for doubtful
accounts of ThCh$64,441,520 and ThCh$106,106,731
as of December 31, 1999 and 2000, respectively
Notes receivable
Other accounts receivable
Amounts due from related companies
Inventories
Income taxes recoverable
Deferred income taxes
Prepaid expenses and other
Other current assets
1999
ThCh$
As of December 31,
2000
ThCh$
29,553,523
166,381,748
7,871,972
26,436,064
75,049,856
11,593,312
426,854,949
12,652,066
83,994,657
34,781,217
109,190,547
34,684,869
4,031,679
7,792,749
190,731,952
460,608,356
9,222,100
58,413,820
18,912,917
70,937,392
-
47,499,632
9,182,229
130,148,804
2000
ThUS$
46,084
130,829
20,210
802,943
16,076
101,828
32,969
123,660
57,749
82,802
16,007
226,878
Total current assets
1,108,521,928
918,004,482
1,600,287
Property, plant and equipment, net
8,865,136,367
8,423,166,129
14,683,459
Other Assets:
Investments in related companies
Investments in other companies
Long-term receivables
Goodwill, net
Negative goodwill, net
Amounts due from related companies
Intangibles
Accumulated amortization
Other assets
Total other assets
TOTAL ASSETS
162,497,486
123,339,346
82,412,492
1,240,521,104
(185,389,017)
86,032,954
56,939,246
(6,842,453)
113,484,638
148,690,335
127,319,553
44,726,193
1,264,102,774
(189,910,076)
139,607,534
56,610,640
(13,999,891)
140,144,865
259,200
221,946
77,968
2,203,613
(331,056)
243,367
98,685
(24,405)
244,304
1,672,995,796
1,717,291,927
2,993,623
11,646,654,091
11,058,462,538
19,277,369
The accompanying notes are integral part of these consolidated financial statements.
7
7
6
6
/
6
6
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Due to banks and financial institutions current portion
Current portion of due to banks and financial
institutions long -term
Current portion of bonds payable
Current portion of notes payable
Dividends payable
Accounts payable
Notes payable
Miscellaneous payables
Amounts payable to related companies
Accrued expenses
Withholdings
Income taxes payable
Deferred income
Deferred income taxes
Other current liabilities
1999
ThCh$
As of December 31,
2000
ThCh$
2000
ThUS$
178,133,709
461,954,163
805,289
270,055,123
155,476,072
30,523,051
8,232,603
197,227,302
15,601,845
86,435,639
36,434,304
69,141,333
58,482,211
-
8,531,057
7,820,291
210,385,898
207,048,806
100,867,367
28,405,069
5,569,099
240,776,424
13,841,141
29,928,840
31,081,343
69,239,716
63,607,642
44,669,097
10,354,000
18,722,155
161,178,593
360,932
175,834
49,516
9,708
419,727
24,128
52,173
54,182
120,700
110,882
77,868
18,049
32,637
280,970
Total current liabilities
1,332,480,438
1,487,243,455
2,592,597
Long-term Liabilities:
Due to banks and financial institutions
Bonds payable
Notes payables
Accounts payable
Amounts payable to related companies
Accrued expenses
Other long-term liabilities
2,465,216,323
1,676,474,846
261,231,618
48,985,304
1,165,953,887
128,934,586
64,091,452
1,812,844,436
1,648,857,553
221,616,694
27,280,956
1,019,144,155
119,080,880
108,639,266
3,160,193
2,874,327
386,327
47,557
1,776,596
207,585
189,382
Total long-term liabilities
5,810,888,016
4,957,463,940
8,641,966
Minority interest
3,771,786,095
3,513,154,913
6,124,213
Commitments and Contingencies
Shareholders’ Equity:
Paid-in capital, no par value
Additional paid-in capital – share premium
Other reserves
Retained earnings
Net income (loss) for the year
417,359,942
25,321,471
24,390,158
346,260,160
(81,832,189)
707,398,979
31,423,970
7,266,721
264,427,970
90,082,590
1,233,154
54,779
12,668
460,957
157,034
Total shareholders’ equity
731,499,542
1,100,600,230
1,918,592
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
11,646,654,091
11,058,462,538
19,277,369
7
7
6
6
/
6
6
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Audited Consolidated Statements of Income
(Translation of financial statements originally issued in Spanish – See Note 2
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of December 31, 2000,
and thousands of US dollars)
Operating Income:
Sales
Cost of sales
Gross profit
Administrative and selling expenses
1999
ThCh$
Years ended December 31,
2000
ThCh$
2000
ThUS$
2,377,629,141
(1,671,970,549)
705,658,592
(256,244,645)
2,589,957,068
(1,754,706,541)
835,250,527
(314,736,350)
4,514,873
(3,058,845)
1,456,028
(548,656)
Operating income
449,413,947
520,514,177
907,372
Non-operating Income and Expense:
Interest income
Equity participation in income of related companies
Other non-operating income
Equity participation in losses of related companies
Amortization of goodwill
Interest expense
Other non-operating expenses
Price-level restatement, net
108,928,518
1,931,390
329,674,186
(310,726)
(54,902,126)
(465,783,351)
(193,192,052)
(145,403,667)
69,836,856
4,282,246
444,670,257
(4,249,486)
(67,531,576)
(470,882,090)
(111,917,062)
(23,740,790)
121,741
7,465
775,160
(7,408)
(117,723)
(820,853)
(195,096)
(41,385)
Non-operating expense, net
(419,057,828)
(159,531,645)
(278,099)
Income before income taxes, minority interest
and amortization of negative goodwill
Less: Income taxes
Income before minority interest and amortization
of negative goodwill
Minority interest
30,356,119
(89,252,431)
360,982,532
(137,790,160)
629,273
(240,199)
(58,896,312)
(59,034,607)
223,192,372
(173,269,639)
389,074
(302,048)
Income before amortization of negative goodwill
Amortization of negative goodwill
(117,930,919)
36,098,730
49,922,733
40,159,857
87,026
70,008
NET INCOME (LOSS) FOR THE YEAR
(81,832,189)
90,082,590
157,034
The accompanying notes are integral part of these consolidated financial statements.
9
9
6
6
/
8
6
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Audited Consolidated Statements of Changes in Shareholders’ Equity
(Expressed in thousands of historical Chilean pesos, except as stated)
Number
of shares
Paid-in
capital
(in thousands)
ThCh$
Additional
paid-in
capital
ThCh$
Other
reserves
ThCh$
Retained
earnings
ThCh$
Net income
(loss) for
the Year
ThCh$
Total
ThCh$
6,800,000
388,522,988 23,571,916
22,570,979
259,203,984
90,093,175
783,963,042
-
-
-
-
-
-
-
-
-
-
-
-
(27,200,000)
90,093,175
(90,093,175)
-
10,101,598
612,870
586,845
8,619,326
-
-
-
-
-
-
(2,633,340)
2,770,796
-
-
-
-
-
-
-
-
(27,200,000)
19,920,639
(2,633,340)
2,770,796
(78,158,729)
(78,158,729)
As of January 1, 1999
Transfer of prior year
income to retained earnings
Dividends
Price-level restatement of capital
Changes in equity of affiliates
Cumulative translation adjustment
Net loss for the year
As of December 31, 1999
6,800,000
398,624,586 24,184,786
23,295,280
330,716,485
(78,158,729)
698,662,408
As of December 31, 1999 (1)
6,800,000
417,359,942 25,321,471
24,390,158
346,260,160
(81,832,189)
731,499,542
As of January 1, 2000
6,800,000
398,624,586 24,184,786
23,295,280
330,716,485
(78,158,729)
698,662,408
Transfer of prior year income
to loss to retained earnings
Price-level restatement of capital
Changes in equity of affiliates
Cumulative translation adjustment
-
-
-
-
Issuance of shares
Net income for the year
1,491,020
286,758,950
6,035,445
-
-
-
-
-
-
-
-
(78,158,729)
78,158,729
-
22,015,443
1,203,739
1,094,879
11,870,214
-
-
-
-
(18,382,462)
1,259,024
-
-
-
-
36,184,275
(18,382,462)
1,259,024
292,794,395
90,082,590
90,082,590
-
-
-
-
As of December 31, 2000
8,291,020
707,398,979 31,423,970
7,266,721
264,427,970
90,082,590 1,100,600,230
(1) Restated in thousands of constant Chilean pesos as of December 31, 2000.
9
9
6
6
/
8
6
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Audited Statement of Consolidated Cash Flows
(Translation of financial statements originally issued in Spanish – See Note 2
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of December 31, 2000,
and thousands of US dollars)
Cash flows from operating activities:
Net income (loss) for the year
Gain (losses) from sales of assets:
Gain on sales of property, plant and equipment
Gain on sale of investments
Charges (credits) to income which
do not represent cash flows:
Depreciation
Amortization of intangibles
Write-offs and accrued expenses
Equity participation in income of related companies
Equity participation in losses of related companies
Amortization of goodwill
Amortization of negative goodwill
Price-level restatement
Other credits to income which do not represent cash flows
Other charges to income which do not represent cash flows
Changes in assets which affect cash flows:
Decrease (increase) in trade receivables
Decrease in inventory
Decrease (increase) in other assets
Changes in liabilities which affect cash flows:
Increase in accounts payable associated with
operating results
Increase in interest payable
Increase (decrease) in income tax payable
Increase in other accounts payable associated with
non-operating results
Net increase (decrease) in value added tax and other
similar taxes payable
Income attributable to minority interest
1999
ThCh$
Years ended December 31,
2000
ThCh$
2000
ThUS$
(81,832,189)
90,082,590
157,034
5,130,193
-
(59,228,834)
(195,971,285)
(103,249)
(341,622)
350,368,395
29,322,948
69,490,062
(1,931,390)
310,726
54,902,126
(36,098,730)
145,403,667
(172,832,518)
35,520,039
377,258,837
32,085,813
88,649,669
(4,282,246)
4,249,486
67,531,576
(40,159,857)
23,740,790
(46,684,910)
106,729,116
657,646
55,933
154,536
(7,465)
7,408
117,723
(70,008)
41,385
(81,382)
186,053
33,416,561
36,268,652
(143,116,747)
(103,014,395)
21,758,068
(50,288,516)
(179,577)
37,929
(87,664)
(41,670,579)
200,246,681
16,452,583
(2,582,870)
94,122,598
10,804,371
(4,503)
164,077
18,834
128,790,287
(79,220,249)
(138,099)
(104,606,789)
59,034,607
(1,574,103)
173,269,639
(2,744)
302,048
Net cash flows provided by operating activities
582,568,585
507,275,288
884,294
Continue
1
1
7
7
/
0
7
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Audited Statement of Consolidated Cash Flows
(Translation of financial statements originally issued in Spanish – See Note 2
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of December 31, 2000,
and thousands of US dollars)
Cash flows from financing activities:
Issuance of shares
Proceeds from the issuance of debt
Proceeds from bond issuances
Other loans from related parties
Proceeds from other loans obtained from
related companies
Other sources of financing
Dividends paid
Payment of debt
Payment of bonds
Payment of loans obtained from related companies
Payment of expenses from bond issuances
Payment of other loans from related companies
Other disbursements for financing
1999
ThCh$
Years ended December 31,
2000
ThCh$
2000
ThUS$
-
3,037,056,805
374,326,557
27,546,745
295,993,584
1,506,890,805
49,474,264
-
1,088,353,987
143,816,846
(29,143,355)
(3,177,565,896)
-
(83,061,575)
(115,064,427)
-
(503,046,047)
-
42,246,795
(141,545,504)
(1,999,634,645)
(198,096,865)
(78,941,069)
-
(69,713,083)
(173,476,321)
515,983
2,626,847
86,245
-
-
73,646
(246,745)
(3,485,810)
(345,327)
(137,612)
-
(121,525)
(302,408)
Net cash provided by (used in) financing activities
763,219,640
(766,802,039)
(1,336,707)
Cash flows from investing activities:
Proceeds from sales of property, plant and equipment
Sale of investment in related companies
Proceeds from sales of other investments
Proceeds from loans obtained from related parties
Other loans received from related companies
Other receipts from investments
Additions to property, plant and equipment
Long-term investments
Investment in financial instruments
Payment of capitalized interest
Other loans granted to related companies
Other investment disbursements
4,784,878
-
42,814,996
-
-
2,094,029
(376,417,124)
(1,210,857,679)
(42,810,409)
(2,935,133)
(50,811,969)
(41,528,200)
132,051,800
488,628,855
-
3,630,809
15,402
202,197,389
(323,005,759)
(304,288,269)
(1,789,138)
-
-
(31,124,976)
230,196
851,789
-
6.329
27
352,475
(563,071)
(530,442)
(3,119)
-
-
(54,258)
Net cash provided by (used) in investing activities
(1,675,666,611)
166,316,113
289,926
Positive (negative) net cash flow for the year
(329,878,386)
(93,210,638)
162,487
Effect of price-level restatement on cash
and cash equivalents
(49,216,926)
3,875,434
6,756
Net increase (decrease) in cash and cash equivalents
(379,095,312)
(89,335,204)
(155,731)
Cash and cash equivalents beginning of year
582,139,576
202,370,624
352,777
CASH AND CASH EQUIVALENTS END OF YEAR
203,044,264
113,035,420
197,046
1
1
7
7
/
0
7
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Notes to the Audited Consolidated Financial Statements
(Translation of financial statements originally issued in Spanish – See Note 2
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of December 31, 2000,
and thousands of US dollars)
NOTE 1 DESCRIPTION OF BUSINESS:
Enersis S.A. (the “Company”) is registered in the Securities Register under No. 0175 and is regulated by the
Chilean Superintendency of Securities and Insurance (the “SVS”). The Company issued publicly-registered
American Depositary Receipts in 1993 and 1996. Enersis S.A. is a reporting company under the United States
Securities and Exchange Act of 1934.
The Company’s subsidiaries, Chilectra S.A., Compañía Eléctrica del Río Maipo S.A. (Río Maipo S.A.), Empresa
Nacional de Electricidad S.A. (Endesa S.A.) and Aguas Cordillera S.A. are registered in the Securities Register
under No.’s 0321, 0345, 0114 and 0369, respectively.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
(a) General:
The consolidated financial statements of the Company have been prepared in accordance with generally
accepted accounting principles in Chile and the regulations established by the SVS (collectively “Chilean
GAAP”), and the specific corporate regulations of Law No. 18.046, related to the formation, registration and
liquidation of Chilean corporations, among others. Certain accounting practices applied by the Company
that conform with generally accepted accounting principles in Chile do not conform with generally accepted
accounting principles in the United States (“US GAAP”). Certain amounts in the prior years’ financial
statements have been reclassified to conform to the current year’s presentation.
The preparation of financial statements in conformity with Chilean GAAP, along with the reconciliation to
US GAAP, requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the financial
statements, and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
The accompanying financial statements reflect the consolidated results of operations of Enersis S.A. and its
subsidiaries. All significant intercompany transactions have been eliminated in consolidation. Investments
in companies in the development stage are accounted for using the equity method, except that income or
losses are included directly in equity instead of being reflected in the Company’s consolidated statement of
income. The Company consolidates the financial statements of companies in which it controls over 50%
of the voting shares, which are the following:
3
3
7
7
/
2
7
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Company Name
Chilectra S.A.
Compañía Eléctrica del Río Maipo S.A.
Synapsis S.A.
Inmobiliaria Manso de Velasco S.A.
Distribuidora de Productos Eléctricos S.A.
Endesa Chile S.A. (1)
Enersis de Argentina S.A.
Enersis International Ltd.
Inversiones Distrilima S.A.
Empresa Distribuidora Sur S.A. (Edesur)
Empresa Eléctrica de Panamá S.A.
Enersis Investment S.A.
Electric Corporation Inc.
Panaguide Corporation Inc.
Interocean Developments Inc.
Enersis de Buenos Aires S.A.
Aguas Cordillera S.A.
Aguas Puerto S.A.
Luz de Bogotá S.A. (2)
Cerj (2)
Investluz (2)
Compañía Americana de Multiservicios S.A.
Electric investment
(1) Includes certain majority owned companies not presented herein.
Percentage participation as of December 31,
1999
Total
72.56
83.74
99.99
100.00
100.00
59.98
100.00
100.00
47.87
50.99
94.78
100.00
100.00
100.00
100.00
99.98
100.00
72.00
39.70
37.41
36.79
100.00
-
Direct
95.91
98.38
99.99
99.99
99.93
59.98
99.99
100.00
14.79
16.02
80.09
100.00
-
-
100.00
-
-
-
-
7.99
-
99.99
100.00
2000
Indirect
2.05
0.01
0.01
0.00
0.06
-
0.00
-
39.14
48.27
19.51
-
-
-
-
-
-
-
44.21
49.39
46.50
0.00
-
Total
97.97
98.40
99.99
100.00
100.00
59.98
100.00
100.00
53.93
64.29
99.61
100.00
-
-
100.00
-
-
-
44.21
57.38
46.50
100.00
100.00
(2) The Company obtained shareholder agreements dated June 25, 1999, from Endesa Internacional, the majority shareholder of these
companies, giving the Company the right to elect a majority of the Board of Directors. The Superintendency of Securities and Insurance
were notified on June 28, 1999.
(b) Periods covered:
These financial statements reflect the Company’s financial positions as of December 31, 1999 and 2000, and
the results of its operations, the changes in its shareholders’ equity and its cash flows for the years ended
December 31, 1999 and 2000.
(c) Constant currency restatement:
The cumulative inflation rate in Chile as measured by the Chilean Consumer Price Index (“CPI”) for the three-year
period ended December 31, 2000 was approximately 12.04%.
Chilean GAAP requires that the financial statements be restated to reflect the full effects of loss in the purchasing
power of the Chilean peso on the financial position and results of operations of reporting entities. The method
described below is based on a model that enables calculation of net inflation gains or losses caused by monetary
assets and liabilities exposed to changes in the purchasing power of local currency. The model prescribes that
the historical cost of all non-monetary accounts be restated for general price-level changes between the date of
origin of each item and the year-end.
The financial statements of the Company have been price-level restated in order to reflect the effects of the
changes in the purchasing power of the Chilean currency during each year. All non-monetary assets and liabilities,
all equity accounts and income statement accounts have been restated to reflect the changes in the CPI from the
date they were acquired or incurred to year-end (see also Note 4).
3
3
7
7
/
2
7
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
The purchasing power gain or loss included in net income reflects the effects of Chilean inflation on the monetary
assets and liabilities held by the Company.
The restatements were calculated using the official consumer price index of the National Institute of Statistics and
based on the “prior month rule,” in which the inflation adjustments are based on the CPI at the close of the month
preceding the close of the respective period or transaction. This index is considered by the business community,
the accounting profession and the Chilean government to be the index that most closely complies with the technical
requirement to reflect the variation in the general level of prices in Chile, and consequently it is widely used for
financial reporting purposes.
The values of the Chilean consumer price indices used to reflect the effects of the changes in the purchasing power of
the Chilean peso (“price-level restatement”) are as follows:
November 30, 1999
November 30, 2000
Change over
Previous
November 30,
2.6%
4.7%
Index
102.04
106.82
By way of comparison, the actual values of the Chilean consumer price indices as of the balance sheet dates
are as follows:
December 31, 1999
December 31, 2000
Change over
previous
December 31,
2.3%
4.5%
Index
102.31
106.94
The above-mentioned price-level restatements do not purport to represent appraisal or replacement values and are
only intended to restate all non-monetary financial statement components in terms of local currency of a single
purchasing power and to include in net income or loss for each year the gain or loss in purchasing power arising from
the holding of monetary assets and liabilities exposed to the effects of inflation.
Index-linked assets and liabilities
Assets and liabilities that are denominated in index-linked units of account are stated at the year-end values of the
respective units of account. The principal index-linked unit used in Chile is the Unidad de Fomento (“UF”), which is
adjusted daily to reflect the changes in Chile’s CPI. Certain of the Company’s investments are linked to the UF. As the
Company’s indexed liabilities exceed its indexed assets, the increase in the index results in a net loss on indexation.
Values for the UF are as follows (historical Chilean pesos per UF):
December 31, 1999
December 31, 2000
Comparative financial statements
Ch$
15,066.96
15,769.92
For comparative purposes, the historical December 31, 1999 and 2000 consolidated financial statements and their
accompanying notes have been presented in constant Chilean pesos as of December 31, 2000. Amounts previously
presented in constant Chilean pesos as of each balance sheet date have been adjusted by the percentage changes
in the CPI to December 31, 2000, as follows:
Year
1999
Change in Index
4.7% (1)
(1) Equivalent to the amounts for 1999 multiplied by the change in the CPI for 2000.
5
5
7
7
/
4
7
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
This updating does not change the prior periods’ statements or information in any way except to update the amounts
to constant Chilean pesos of similar purchasing power.
Convenience translation to U.S. dollars
The financial statements are stated in Chilean pesos. The translations of Chilean pesos into US dollars are included
solely for the convenience of the reader, using the observed exchange rate reported by the Chilean Central Bank
as of December 31, 2000 of Ch$ 573.65 to US$ 1.00. The convenience translations should not be construed as
representations that the Chilean peso amounts have been, could have been, or could in the future be, converted into
US dollars at this or any other rate of exchange.
(d) Assets and liabilities in foreign currencies:
Assets and liabilities denominated in foreign currencies are detailed in Note 18. These amounts have been stated
at the observed exchange rates reported by the Central Bank of Chile as of each year-end as follows:
United States dollar (Observed)
British pound sterling
Argentine peso
Colombian peso
New Peruvian sol
Brazilian real
Italian lira
Japanese yen
Euro
German Marc
Pool Unit (IBRD)
Unidad de Fomento (UF)
IBRD unit of account (BID)
(e) Time deposits:
Symbol used
1999
Ch$
2000
Ch$
US$
£
$ Arg
$ Col
Soles
Rs
Lira
¥
€
DM
UP
UF
UC
530.07
855.92
530.07
0.28
151.04
295.80
0.28
5.17
-
272.47
7,135,091.92
15,066.96
819.34
573.65
856.58
573.65
0.26
162.69
294.33
0.28
5.01
538.84
275.50
7,230,629.88
15,769.92
850.92
Time deposits are presented at cost plus accrued interest and UF indexation adjustments, as applicable.
(f) Marketable securities:
Marketable securities consist of short-term highly liquid Chilean Government debt securities valued at cost plus
accrued interest, which approximates market value.
(g) Investments in related companies:
Investments in related companies are included in “Other assets” using the equity method. This valuation method
recognizes in income the Company’s equity in the net income or loss of each investee on the accrual basis
(Note 10).
Investments in foreign affiliates are recorded in accordance with Technical Bulletin No.64 of the Chilean
Association of Accountants (Technical Bulletin No. 51 in 1997).
(h) Allowance for doubtful accounts:
Accounts receivable are classified as current or long-term, depending on their collections terms. Current and
long-term accounts receivable are presented net of an allowance for doubtful accounts of ThCh$64,441,520 and
ThCh$106,106,731 as of December 31, 1999 and 2000, respectively.
5
5
7
7
/
4
7
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
(i)
Inventories:
Inventory of materials in transit and operation and maintenance materials, are valued at the lower of price-level
restated cost or net realizable value. The cost of real estate projects under development, included in inventory,
include the cost of land, demolition, urbanizing, payments to contractors and other direct costs.
The costs and revenues of construction in progress are accounted for under the completed contract method in
accordance with Technical Bulletin No. 39 of the Chilean Association of Accountants and are included in current
assets as their completion is expected in the short-term.
(j) Property, plant and equipment:
Property, plant and equipment are shown at contributed amounts or cost, as appropriate, plus price-level
restatement.
In 1986, an increase based upon a technical appraisal of property, plant and equipment was recorded in the
manner authorized by the SVS in Circulars No.’s 550 and 566 dated October 15 and December 16, 1985,
respectively, and Communication No. 4790, dated December 11, 1985.
Property, plant and equipment received in leasing which qualify as capital leases, are accounted as acquisitions,
recording the total of the lease obligation and interest on an accrual basis.
Depreciation expense is calculated on the revalued balances using the straight-line method over the estimated
useful lives of the assets.
(k) Power installations financed by third parties:
As established by D.F.L. 1 of the Ministry of Mines dated September 13, 1982, power installations financed
by third parties are treated as reimbursable contributions. As such, the installations constructed using this
mechanism form part of the Company’s plant and equipment.
Such installations made prior to D.F.L. 1 are deducted from Plant and equipment and their depreciation is charged
to Power installations financed by third parties.
(l)
Intangibles, other than goodwill:
Intangibles, other than goodwill, correspond mainly to easements, parent company contributions, and rights for
the use of telephone lines and are amortized over 20 to 40 years in accordance with Technical Bulletin No.55
of the Chilean Association of Accountants.
(m) Severance indemnity:
The severance indemnity that the Company is obliged to pay to its employees under collective bargaining
agreements is stated at the present value of the benefit under the vested cost method, discounted at 9.5% and
assuming an average employment span which varies based upon years of service with the Company.
(n) Operating income:
Energy supplied and unbilled at each year-end is valued at the selling price using the current rates and has
been included in revenue from operations. The amount is presented in current assets as trade receivables. The
corresponding cost is included in cost of operations.
7
7
7
7
/
6
7
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
(o) Deferred income taxes:
In accordance with circular No. 986 issued in 1991 by the SVS and Technical Bulletin No.41 issued by the Chilean
Association of Accountants, the Company records the effects of deferred taxes resulting from significant timing
differences that will not be fully offset when they reverse by similar new differences.
In accordance with circular No. 1466 issued on January 27, 2000 by the SVS, deferred taxes are presented
in accordance with BT’s No.’s 60 and 68 of the Chilean Association of Accountants, which became effective
as of January 1, 2000.
(p) Accrued vacation expense:
In accordance with Technical Bulletin No.47 issued by the Chilean Association of Accountants, employee vacation
expenses are recorded on the accrual basis.
(q) Reverse repurchase agreements:
Reverse repurchase agreements are included in “Other current assets” and are stated at cost plus interest and
indexation accrued at year end, in conformity with the related contracts.
(r) Cash equivalents:
The consolidated statement of cash flows have been prepared in accordance with the indirect method.
Investments considered as cash equivalents, as indicated in point 6.2 of Technical Bulletin No. 50 issued by the
Chilean Association of Accountants, include time deposits, investments in fixed income securities classified as
marketable securities, repurchase agreements classified as other current assets, and other balances classified as
other accounts receivable with maturities less than 90 days.
For classification purposes, cash flows from operations include collections from clients and payments to suppliers,
payroll and taxes.
(s) Forward foreign exchange contracts:
As of December 31, 2000, the company has forward contracts with various financial institutions, which are
recorded according to Technical Bulletin No. 57 of the Chilean Association of Accountants.
(t) Goodwill and negative goodwill:
Goodwill and negative goodwill are determined according to Circular No. 368 of the SVS. Amortization
is determined using the straight-line method, considering the nature and characteristic of each investment,
foreseeable life of the business and investment return, and does not exceed 20 years.
(u) Pension and post-retirement beneftis:
Pension and post-retirement benefits are recorded in accordance with the respective Collective Bargaining
Contracts of the employees based on the actuarially determined projected benefit obligation.
(v) Bonds:
Bonds payable are recorded at the face value of the bonds. The difference between the face value and the
placement value, equal to the premium or discount, is deferred and amortized over the term of the bonds.
(w) Reclassifications:
Certain amounts in the prior years’ financial statements have been reclassified in order to conform with the current
year’s method of presentation.
7
7
7
7
/
6
7
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
NOTE 3 CHANGE IN ACCOUNTING PRINCIPLES:
(a) Deferred taxes:
In accordance with Technical Bulletin’s No. 60 and 68 issued by the Chilean Association of Accountants and
Circular No. 1,466 issued by the SVS, the Company has recorded the tax effects of temporary differences on a
prospective basis beginning January 1, 2000.
The effect of accounting for deferred taxes according to criteria mentioned in the Technical Bulletins, resulted
in the recognition in assets and liabilities complementary accounts amounting to ThCh$5,362,147 and
ThCh$20,840,742, respectively, which are presented in the balance sheet as current and non-current, depending
on the amortization period that management has determined. The amortization of the accumulated balances
at the beginning of the period of the complementary assets and liabilities resulted in a net credit to income
of ThCh$13,172.
In addition, the credit to earnings for new temporary differences generated during the period amounted to
ThCh$3,950,449 (See Note 17.), which has been recorded in the Statement of Income under the item “Income
taxes”.
(b) Concession contracts:
As of January 1, 2000, the subsidiaries “Autopista del Sol S.A.” and “Autopista Los Libertadores S.A.”, adopted
Technical Bulletin No. 67 of the Chilean Association of Accountants, which defines the accounting treatment
of concession contracts.
The main effects of the application of these rules are related with determining the cost of the complementary
works under the depreciation method, and the recognition of revenues from fares and services.
NOTE 4 PRICE-LEVEL RESTATEMENT:
The charge to income for price-level restatement as of each year-end is as follows:
Credits (charges) to income for the restatement of:
Shareholders’ equity
Property, plant and equipment
Other assets
Current and long-term liabilities
Minority interest
Foreign exchange
Indexation
Net charges for price-level restatement
of balance sheet accounts
Price-level restatement of the income
statement accounts
As of December 31,
1999
ThCh$
2000
ThCh$
(20,856,909)
68,172,528
59,368,143
(18,284,063)
(20,098,487)
(194,941,336)
(18,027,018)
(36,184,275)
96,682,710
83,246,359
(17,719,403)
(24,983,688)
(62,867,911)
(59,342,192)
(144,667,142)
(21,168,400)
(736,525)
(2,572,390)
Net charge to income
(145,403,667)
(23,740,790)
9
9
7
7
/
8
7
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
NOTE 5 TIME DEPOSITS:
Time deposits as of each year-end are as follows:
Financial Institution
ABN Amro Bank
American Express
Ahorromás
Banco Alfa
Banco Bilbao Vizcaya
Banco Bozano
Banco Bozano Simonsen
Banco Bradesco
Banco CCF-Brasil-Commodities
Banco Colpatria
Banco Continental
Banco Cooperativo
Banco Crédito del Perú
Banco de Bogotá
Banco de Chile – Nueva York
Banco do Estado do Ceará
Banco Galicia
Banco Galicia
Banco Ganadero
Banco HSBC-Bamerindus
Banco Itau – Brasil
Banco Liberal – Perú
Banco Provincia de Buenos Aires
Annual
Rate
%
12.50%
-
-
1.28%
6.70%
-
-
15.00%
1.28%
12.51%
-
-
6.50%
13.00%
-
14.52%
11.00%
-
12.24%
12.00%
1.28%
1.28%
-
Scheduled
Maturity
Jan 02, 2001
-
-
Jan 01, 2001
Jan 26, 2001
-
-
Jan 01, 2001
Jan 01, 2001
Jan 02, 2001
-
-
April 14, 2001
Jan 02, 2001
-
Jan 01, 2001
Jan 01, 2001
-
Jan 06, 2001
Jan 01, 2001
Jan 01, 2001
Jan 01, 2001
-
As of December 31,
2000
ThCh$
1999
ThCh$
-
12,255,167
385,041
-
48,617,314
869,399
1,000,451
1,918,060
1,294,071
3,827,793
4,003,634
16,820
-
93,523
490,523
1,597,661
1,698,636
3,917,154
-
2,963,305
635,935
283
5,100,293
2,004,654
-
-
598,756
2,391,547
-
-
1,316,594
664,274
3,872,919
-
-
20,072
344,977
-
956,292
2,190,195
-
16,131,019
2,770,835
2,818
308,534
-
9
9
7
7
/
8
7
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
Financial Institution
Banco Popular
Banco Río de la Plata
Banco Río de la Plata
Banco Río de la Plata
Banco Río de la Plata
Banco Safra
Banco Santander
Banco Santander
Banco Santander
Banco Santiago
Banco Sudameris
Banco Terraquemada
Bancosur – Perú
Bank Boston
Bank Boston
Bank Boston
Bank Boston
Bank Boston
Caja de Ahorro Pesos
Caja de Ahorro Dolares
Caja de Ahorro Pesos
Chase Manhattan Bank
Citibank N.A.
Citibank N.A
Citibank N.A
Citibank N.A
Citiliquid Reserves-NY
Corfivalle
Fiduciaria Banco de Bogotá
Fiduciaria BanColombia
Fiduciaria de Crédito
Fiduciaria Santander
Fiduciaria Santander
Fiduciaria Cititrust
Fiducolombia
Fiducredito
Fiduganadero
Fiduoccidente
ING Barings
Plazo fijo Banco Roberts
Las Villas
Liberal Perú
Standard chareted- soles
Unibanco
Wiese-Perú
Total
Annual
Rate
%
-
11.00%
8.69%
12.25%
-
-
6.00%
-
-
-
12.93%
12.29%
-
0.37%
16.36%
1.17%
1.17%
1.28%
13.38%
3.00%
3.00%
1.28%
12.30%
6.70%
5.65%
12.73%
6.65%
12.89%
13.11%
14.81%
13.29%
12.22%
9.11%
11.16%
11.00%
11.23%
12,57%
12.68%
-
13.61%
13.00%
-
-
-
9.25%
Scheduled
Maturity
-
Jan 01, 2001
Jan 02, 2001
Jan 29, 2001
-
-
Jan 01, 2001
-
-
-
Mar 07, 2001
Jan 02, 2001
-
Jan 02, 2001
Jan 01, 2001
Aug 27, 2001
Jan 30, 2001
Jan 01, 2001
Jan 01, 2001
Jan 31, 2001
Jan 31, 2001
Jan 01, 2001
Jan 01, 2001
Jan 01, 2001
Jan 01, 2001
Jan 29, 2001
Jan 01, 2001
Jan 02, 2001
Jan 02, 2000
Jan 02, 2001
Jan 02, 2001
Jan 02, 2001
Jan 31, 2001
Jan 02, 2001
Jan 31, 2001
Jan 01, 2001
Jan 02, 2001
Jan 02, 2001
-
Jan 11, 2001
Jan 02, 2001
-
-
-
Jan 01, 2001
As of December 31,
2000
ThCh$
1999
ThCh$
612,215
203,958
231,373
1,078,814
6,871,258
155,096
2,214,240
3,377,451
2,093,780
263,084
3,536,776
-
5,550,431
1,418,673
178,681
3,760,105
-
-
-
-
-
1,542,162
4,087,352
105,470
1,948,641
6,537,156
-
1,227,015
11,727,932
1,947,706
829,328
1,249,726
5,383,457
1,818,908
213,430
-
-
-
768,887
-
799,702
933,174
425
283,215
2,747,064
-
1,026,834
30,271
5,265,378
-
-
456,451
-
-
-
5,635,704
681,942
-
449,945
668,729
1,893,001
69,861
1,739,156
3,194
750
1,553
650,519
9,187,591
74,672
192,717
5,765,359
3,237,096
2,704,080
430
437
839
219
80,311
1,013
574
89,476
127
3,958
1,264,586
155,689
-
-
-
143,908
166,381,748
75,049,856
1
1
8
8
/
0
8
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
NOTE 6 MARKETABLE SECURITIES:
Marketable securities as of each year-end are as follows:
Financial Institution
Security
Empresa Eléctrica de Melipilla S.A.
Cía de Teléfonos de Chile S.A.
C.G.E. S.A.
Chilectra S.A.
Citicorp Chile de Fondos Mutuos S.A.
National Treasury
Banco Nazionale de Paris
Banco Roberts
Banco Nazionale del Lavoro
Bank Boston
Banco Santander
Stocks
Stocks
Stocks
Stocks
Mutual Funds
Treasury Documents
Mutual Funds
Mutual Funds
Mutual Funds
Mutual Funds
Mutual Funds
Total
NOTE 7
INVENTORIES:
As of December 31,
2000
ThCh$
1999
ThCh$
1,864
1,157
306
63,692
492,166
-
2,843,765
2,892,869
-
-
1,576,153
1,830
307
1,159
1,276
-
116,497
-
1,293,296
4,123,799
5,460,497
594,651
7,871,972
11,593,312
Inventories include the following items and are presented net of a provision for obsolescence amounting to
ThCh$6,800,619 and ThCh$6,254,607 as of December 31, 1999 and 2000, respectively:
Real estate under development
Materials in transit
Operation and maintenance materials
Computer equipment
Other
As of December 31,
1999
ThCh$
50,620,684
3,926,072
52,955,012
89,356
1,599,423
2000
ThCh$
30,321,108
2,674,537
29,309,364
150,816
8,481,567
Total
109,190,547
70,937,392
1
1
8
8
/
0
8
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
NOTE 8 PROPERTY, PLANT AND EQUIPMENT:
The composition of property, plant and equipment as of each year-end is as follows:
Land
Buildings and infrastructure
Distribution and transmission lines and public lighting
Less: third party contributions
Sub-total
As of December 31,
1999
ThCh$
2000
ThCh$
143,465,160
132,077,115
5,300,248,691
2,803,267,125
(51,066,132)
8,052,449,684
4,247,607,736
3,789,721,641
(68,350,232)
7,968,979,145
Machinery and equipment
2,690,954,853
2,629,787,825
Work in progress
Construction materials
Equipment in transit
Sub-total
Technical appraisal
403,380,126
275,599,035
12,221,624
311,400,668
80,697,481
18,879,207
691,200,785
410,977,356
590,712,007
872,189,698
Total property, plant and equipment
12,168,782,489
12,014,011,139
Less: accumulated depreciation
(3,303,646,122)
(3,590,845,010)
Total property, plant and equipment, net
8,865,136,367
8,423,166,129
The depreciation charged to income amounted to ThCh$350,368,395 and ThCh$377,258,837 for the years ended
December 31, 1999 and 2000, respectively.
NOTE 9 OTHER CURRENT ASSETS:
Other current assets as of each year-end are as follows:
Forward contracts (1)
Guarantees and indemnities
Deferred expenses
Post-retirement benefits
Deposits for commitments and guarantees
Suppliers fines and payments
Investment projects
Other
Reverse repurchase agreements (2)
As of December 31,
1999
ThCh$
2000
ThCh$
161,412,692
3,031,840
8,236,524
626,725
2,038,583
5,018,714
-
6,066,258
4,300,616
112,435,400
1,012,488
6,270,753
834,009
2,762,680
94,752
2,871,528
3,867,194
-
Total
190,731,952
130,148,804
3
3
8
8
/
2
8
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
(1) As of December 31, 2000, the nominal values of forward contracts are the following:
Rights
US$196,000,000
Obligations
UF 6,978,258
(2) The details of reverse repurchase agreements as of December 31, 1999 and 2000 are as follows:
Issuer
Financial
Instrument
Agreement
Date
Maturity
Date
Market Value
at Purchase
Date
ThCh$
Banco Central
Banco Central
Banco Central
Banco Central
Banco BBVA
Banco del Estado
Banco Santander
Banco Santander
Banco Santiago
Total
P.R.B.C.
P.C.D.
P.C.D
P.T.F.
P.D.B.C.
P.R.C.
P.R.C.
L.H.
P.C.D
Dec. 1999
Dec. 1999
Dec. 1999
Dec. 1999
Dec. 1999
Dec. 1999
Dec. 1999
Dec. 1999
Dec. 1999
Jan. 2000
Jan. 2000
Jan. 2000
Jan. 2000
Jan. 2000
Jan. 2000
Jan. 2000
Jan. 2000
Jan. 2000
572,713
489
2,763
87,100
1,968,046
39,786
17,335
767,976
839,903
4,296,111
4,300,616
Balance
ThCh$
573,645
489
2,767
87,170
1,968,833
39,823
17,393
770,509
839,987
Currency
or Index
Ch$
Ch$
Ch$
Ch$
Ch$
Ch$
Ch$
Ch$
Ch$
NOTE 10 INVESTMENT IN RELATED COMPANIES:
a. Investments as of each year-end are as follows:
Related Companies
Administradora Proyecto atacama
Atacama Finance Co.
Autopista Los Libertadores S.A. (1)
Cemsa
Cia. De Interconexion Energetica S.A.
Compañia Electrica Tal Tal Ltda.
Consorcio Ing. B y R Ingendesa Ltda.
Distrilec Inversora S.A.
Electrogas S.A.
Energex Co.
Gasoducto Atacama Ltda.
Gasoducto Cuenca Norteste ltda.
Inversiones electricas Quillota S.A.
Inversiones Electrogas S.A.
Nopel Ltda.
Sacme
Endesa market place
Transquillota Ltda.
Percentage
owned
Number
of Shares
%
50.00
50.00
-
45.00
45.00
-
50.00
51.50
0.02
50.00
50.00
50.00
50.00
42.50
50.00
50.00
15.00
50.00
500
5,000
-
6,305,400
128,270,527
-
-
256,270,191
85
5,000
-
-
608,676
425
-
12,000
210
-
Related
Equity
ThCh$
(274)
4,141,534
-
8,753,998
106,783,107
-
8,478
312,716,472
8,868,644
(12,006)
33,841,645
55,433,540
14,913,550
13,301,162
67,736,868
133,406
5,241,390
4,374,836
Carrying value of investment
Equity in net earnings (losses)
1999
ThCh$
2000
ThCh$
1999
ThCh$
2000
ThCh$
-
1,536,523
23,635,451
3,632,281
47,912,917
44,212
10,367
(1,828)
1,728
3,975
12,827,122
24,972,668
7,796,493
4,209,426
33,819,763
-
-
2,096,388
(137)
2,070,767
-
3,939,298
48,052,398
-
4,239
(28,237)
1,885
(6,003)
16,920,823
27,716,770
7,456,775
5,652,994
33,868,434
66,703
786,208
2,187,418
(127)
99,135
-
89,240
-
-
33,091
(1,828)
5
(21,235)
(60,948)
(226,588)
1,129,773
85,729
403,209
-
-
91,208
(138)
85,513
-
184,848
(1,472,056)
-
3,348
(28,237)
158
(11,141)
2,781,023
270,767
580,007
282,727
(2,443,882)
2,826
(294,032)
91,029
Total
162,497,486
148,690,335
1,620,664
32,760
(1) Development stage subsidiary, which began operations September 1, 2000, and was subsequently consolidated.
3
3
8
8
/
2
8
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
b. In accordance with current standards, recognition has been given to the excess of the equity in the net assets
acquired over the purchase price (negative goodwill) in the purchase of shares as of December 31, 1999 and
2000 as follows:
Company
Synapsis S.A.
Edelnor S.A.
Central Hidroelectrica Betania S.A.
Cía Eléctrica Cachoeira Dourada
Edegel S.A.
Empresa de Energía de Bogotá S.A.
Cerj S.A.
Coelce
CAM Argentina S.A. (ex Elenet)
Initial Balance Reserve Period activity
ThCh$
ThCh$
ThCh$
176,673
5,130,747
-
-
-
-
-
101,757,599 3,422,589
29,890,521 1,005,359
-
37,106,190 3,352,937 34,399,516
-
2,012,722
-
(62,314)
3,661,261
-
8,155,178
62,314
-
(1,359)
-
-
As of
Amortization December 31,
for the period
ThCh$
2000
ThCh$
(14,422)
(993,185)
(28,798,639)
(1,670,048)
(8,065,490)
(203,403)
-
(414,670)
-
162,251
4,137,562
76,381,549
29,225,832
66,793,153
3,457,858
2,011,363
7,740,508
-
Total
185,940,483 7,779,526 36,349,924
(40,159,857) 189,910,076
c. Following current standards, recognition has been given to the excess of the purchase price over the equity in the
net assets acquired (goodwill) in the purchase of shares as of December 31, 2000 as follows:
Company
Initial Balance Reserve
ThCh$
ThCh$
Period activity
ThCh$
As of
Amortization December 31,
for the period
ThCh$
2000
ThCh$
Endesa S.A.
Chilectra S.A.
Río Maipo S.A.
Esval S.A.
Inversiones Distrilima S.A.
Distrilec Inversora S.A.
Edesur S.A.
Emgesa S.A.
C. Eléctrica Cachoeira Dorada
Cerj S.A.
Luz de Bogotá
Codensa S.A.
Central Costanera S.A.
Edegel S.A.
Hidroinvest S.A.
Investluz S.A.
Coelce
Lajas Holding Inc.
Aguas Cordillera S.A.
Emp. Eléctrica de Colina S.A.
Gas Atacama
Hidroeléctrica El Chocón S.A.
750,065,817
12,368,062
372,501
18,590,323
17,378
10,078,631
8,376,979
23,005,313
60,440,371
95,665,531
5,909,834
25,453,818
21,038,689
-
1,182,030
948,386
191,528,717
2,178,799
12,116,689
2,920,995
-
5,854,138
-
-
-
-
585
338,992
281,758
-
2,032,895
3,217,684
198,775
-
917,335
-
51,539
31,899
-
18,969
-
-
-
255,254
-
96,821,740
9,974,801
(18,590,323)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(12,116,689)
-
86,135
-
(33,557)
-
(1,198)
(561,948)
(544,004)
(1,290,017)
(3,470,737)
(5,786,094)
(342,539)
(1,427,304)
(1,391,075)
-
(66,084)
(52,988)
(40,453,024) 709,612,793
(979,356) 108,210,446
10,313,745
-
16,765
9,855,675
8,114,733
21,715,296
59,002,529
93,097,121
5,766,070
24,026,514
20,564,949
-
1,167,485
927,297
(10,352,904) 181,175,813
2,075,819
-
2,746,607
81,641
5,631,476
(121,949
-
(174,388)
(4,494)
(477,916)
Total
1,248,113,001
7,345,685
76,175,664
(67,531,576) 1,264,102,774
Income and losses recognized by Enersis S.A. according to the participation in the related companies as of
December 31, 2000, amount to ThCh$1,931,390 and ThCh$4,282,246, and ThCh$310,726 and ThCh$4,249,486,
in 1999 and 2000, respectively.
5
5
8
8
/
4
8
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
d. The investments made by Enersis during the period ended as of December 31, 2000, amounted to US$524
million. Of this amount, US$390 million was used to the purchase the remaining shares of Chilectra and Rio
Maipo in Chile and in the United States, and US$132 million was used to buy an additional 14% of “Companhia
de Electricidades do Rio de Janeiro (Cerj), which are described as follows:
Acquisitions
Additional shares in Chilectra S.A.
Additional shares in Río Maipo S.A.
Additional shares in Cerj S.A.
Endesa Market Place
Percentage
26.0%
15.0%
18.5%
15.0%
Amount
ThUS$
367
23
132
2
e. In accordance with current standards, the Company has credited income for ThCh$8,420,986 and
ThCh$2,342,385 for the year ended December 31, 1999 and 2000, respectively, for the premium obtained on
the placement of shares by the subsidiaries Chilectra S.A. which are reported in “Other non-operating income” as
adjustments to investments in related companies.
f. As of 1998, under Technical Bulletin No. 64 of the Chilean Association of Accountants, the foreign exchange
gains and losses of liabilities related to net investments in a foreign countries, and that are denominated in the
functional currency of those foreign investments, must be included in the cumulative translation adjustment in
shareholders’ equity, and, in this way, acted as a hedge of the exchange risk affecting the investments. As of
December 31, 2000 the amounts are as follows:
Company
Country of origin
Edesur S.A.
Edelnor S.A.
Cerj S.A.
Endesa Colombia (Emgesa-Betania)
Endesa Argentina (Costanera)
Compañía Eléctrica Cono Sur S.A.
Luz de Bogotá S.A.
Investluz
Argentina
Peru
Brasil
Colombia
Argentina
Panamá
Colombia
Brasil
Investment
ThCh$
383,609,363
93,146,812
365,313,205
338,788,787
261,967,909
774,614,301
250,319,173
123,652,023
Reporting
Currency
US$
US$
US$
US$
US$
US$
US$
US$
Liability
ThCh$
330,032,678
18,573,131
194,861,629
149,926,313
161,006,703
878,346,580
185,556,052
78,168,658
Total
2,591,411,573
1,996,471,744
5
5
8
8
/
4
8
S
E
G
A
P
0
0
0
2
S
I
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
NOTE 11 INTANGIBLES:
Intangibles as of December 31, 2000 is as follows:
Description
Easements
Water rights
Rights to telephone lines
Parent company contributions
Mineral rights
Trademarks
Contracts rights
Other
Initial
Balance
ThCh$
32,614,778
15,464,
875,940
1,376,813
177,452
9,101
5,750,531
13,894,858
Period
Activity
ThCh$
(25,894,839)
13,568,493
(9,873)
-
-
-
(5,540,912)
13,614,289
Amortization
for the
period
ThCh$
As of
December 31,
2000
ThCh$
(378,433)
(240,162)
-
(114,734)
-
(3,540)
(147,967)
(6,956,510)
6,341,506
13,343,795
866,067
1,262,079
177,452
5,561
61,652
20,552,637
Total
54,714,937
(4,262,842)
(7,841,436)
42,610,749
NOTE 12 OTHER ASSETS:
Other assets as of each year-end are as follows:
Description
Bond discount
Deferred expenses
Deferred income taxes (Note 17)
Deferred loan commissions
Concession rights
Pension and post-retirement benefits
Deposit guarantees
Others
As of December 31,
1999
ThCh$
11,912,521
38,535,452
1,582,489
7,630,217
15,839,092
7,769,961
10,832,936
19,381,970
2000
ThCh$
11,464,258
41,396,166
37,372,661
13,651,642
906,884
4,427,769
18,009,474
12,916,011
Total
113,484,638
140,144,865
7
7
8
8
/
6
8
S
E
G
A
P
I
0
0
0
2
S
S
R
E
N
E
T
R
O
P
E
R
L
A
U
N
N
A
NOTE 13 DUE TO BANKS AND FINANCIAL INSTITUTIONS:
a. Short-term:
Financial Institution
American Express
Atlantic Security
Banco BBV Bhif
Banco Bandeirantes
Banco Bayernische Landes
Banco BBVA Argentarilia
Banco Bogotá
Banco Bice
Banco Beal
Banco Bradesco
Banco Colombia
Banco do Brasil
Banco Itau
Banco Medio Credito
Banco Nationale de Continue reading text version or see original annual report in PDF
format above