Enel Americas
Annual Report 2007

Plain-text annual report

SAN TA ROSA 76, SANTIA GO , C HILE / T EL. (5 6 2) 3 53 44 00, 378 4400 / w ww.eners i s .c l T R O P E R L A U N N A ANNUAL REPORT Santiago Stock Exchange: New York Stock Exchange: Madrid Stock Exchange: ENERSIS ENI XENI Enersis S.A. was constituted with the name of Compañía Chilena Metropolitana de Distribución Eléctrica S.A., and on august 1, 1988, the company became known as Enersis S.A. The capital of the company amount to Th.Ch$2,594,015,458, divided into 32,651,166,465 shares. Enersis shares are traded in Chilean Stock Exchanges, New York Stock Exchange in the form of American Depositary Receipts (ADR) and in the Latin American stock exchange of Madrid Stock Exchange (Latibex). The objects of the company are to explore, develop, operate, generate, distribute, transmit, transform and/ or sell energy in any of its forms or nature, in Chile or abroad, either directly or through other companies, and activities in telecommunications and the provision of engineering in Chile or abroad, and also has the object of investing and managing its investments in subsidiary and associate companies. Its total assets were Th.Ch$11,437,766,644 at December 31, 2007. Enersis control a group who operate in the electricity market on five countries in Latin America. In the year 2007 obtained a net income of Th.Ch$188,376,410 and an operating income of Th.Ch$1,255,566,693. Employees: at the end of 2007 it gave direct occupation to 12,129 people, through its subsidiaries companies over Latin America. ENERSIS MANAGEMENT INVESTOR AND SHAREHOLDER RELATIONS CHIEF INVESTMENTS AND RISKS OFFICER RICARDO ALVIAL PHONE (56-2) 353 4682 CITIBANK NY RICARDO SZLEZINGER PHONE (1-212) 816 6852 SANTANDER CENTRAL HISPANO INVESTMENT ENRIQUE ROMERO PHONE (34-91) 289 3943 CHAIRMAN PABLO YRARRAZAVAL PHONE (56-2) 353 4663 CHIEF EXECUTIVE OFFICER IGNACIO ANTOÑANZAS PHONE (56-2) 353 4510 COMMUNICATIONS OFFICER JOSE LUIS DOMINGUEZ PHONE (56-2) 353 4666 AUDITING OFFICER ANTONIO ZORRILLA PHONE (56-2) 353 4647 HUMAN RESOURCES OFFICER FRANCISCO SILVA PHONE (56-2) 353 4610 GENERAL COUNSEL DOMINGO VALDES PHONE (56-2) 353 4631 REGIONAL ACCOUNTING OFFICER FERNANDO ISAC PHONE (56-2) 353 4685 REGIONAL CHIEF FINANCIAL OFFICER ALFREDO ERGAS PHONE (56-2) 630 9130 REGIONAL PLANNING AND CONTROL OFFICER RAMIRO ALFONSIN PHONE (56-2) 353 4684 INDEX LETTER FROM THE CHAIRMAN 2007 HIGHLIGHTS IDENTIFICATION OF THE COMPANY OWNERSHIP AND CONTROL SHARE TRANSACTIONS 2008 DIVIDEND POLICY INVESTMENT AND FINANCING POLICY 2007 ADMINISTRATION AND PERSONNEL COMPANY BUSINESSES DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY OTHER BUSINESSES RISK FACTORS COMPANY ACTIVITIES SUBSIDIARIES AND RELATED COMPANIES DECLARATION OF RESPONSIBILITY CONSOLIDATED FINANCIAL STATEMENTS UNCONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS OF SUBSIDIARIES 2 8 10 14 18 22 24 28 36 40 62 70 74 82 102 104 202 229 2 enersis07 enersis07 ANNUAL REPORT LETTER FROM THE CHAIRMAN ANNUAL REPORT 3 LETTER FROM THE PRESIDENT Dear Shareholder: It is with great pleasure that I present you our Annual Report summarizing not only financial and management indicators, but also the main activities developed by Enersis during 2007. Before breaking down to details regarding the results of the previous years and the highlights of our business, I would like to extend - in my role as President of Enersis and head of the ENDESA’s businesses in Latin America- a special greeting to all of you, our shareholders, while emphasizing the leading position that we currently hold in the Chilean energy market and in the entire Latin American region. Likewise, allow me to mention our strong commitment, as a Group, to provide the best electricity services in the region. All of this with the clear objective of growing as a company and continuing to retribute, in the best manner possible, all of those who have trusted our corporate project. PERFORMANCE In relation to our business, net profit after taxes amounted to Ch$ 188,376 million. If this result is compared to the previous year in homogenous terms -namely, isolating the effect of the Chilectra and Elesur merger in 2006- Enersis’ 2007 profits increased by 13.3%. Along these lines, we should mention the 11% growth rate shown by the company’s operating results Pablo Yrarrázaval amounting to Ch$ 1,255,567 million, an indicator that reflects the good performance of our electric Chairman generation, transmission and distribution activities in Argentina, Brazil, Chile, Colombia and Peru. Our operating income, this increased by 12,8%, amounting to Ch$ 4,686,676 million. When analyzed by lines of business line, the 24.2% growth reported by the Generation and Transmission Businesses and the 3.9% increase experienced by the Distribution Business should both be pointed out. All these indicators clearly confirm the company’s and its subsidiaries healthy and solid financial position. LEADERSHIP In the Distribution Business, our companies continue to obtain significant increases in physical sales and in number of clients. For this reason, as of year-end 2007 our physical sales totaled 61,610 GWh, a figure that represents an increase of 5.7% compared to the previous year. Likewise the number of customers increased by more than 390 thousand, reflecting a rise of 3.4% and reaching almost 12 million users at the end of the fiscal year. 4 enersis07 ANNUAL REPORT However, in order to show our corporate growth, we should point The healthy position of the company and its subsidiary, Endesa out that in the Distribution Business, the energy sales during the Chile, has been acknowledged by Standard / Poor’s, the credit rating 1997-2007 period increased by 65% while the number of clients agency, who raised the rating of both companies to BBB (stable). rose by 67%. This is equivalent to incorporation of 3 Chilectra sized Today, both Enersis and Endesa Chile have been granted an distributors over a 10 year period. investment grade by the three international agencies, that is to say Furthermore, the energy production in the Generation Business Standard & Poor’s, Moody´s and Fitch. has increased 90% over the last decade, while installed capacity Likewise, the domestic agencies Feller Rate and Fitch Chile raised rose by 34 %, totaling 13,707 MW. The latter is equivalent to 5 Ralco their local classification to AA- (stable) which confirmed the operating (690 MW) sized generator start-ups during said period. and financial strengthening of the Enersis Group. At this point, let me highlight the entrance on duty of Plant San Enersis, together with its subsidiaries Endesa Chile and Chilectra, Isidro II, with 248 MW of installed capacity, as of April, 2007. Such will continue to play a major role in finding solutions to the energy said power increased to 353 MW as of January, 2007, when it started problem currently being experienced by the countries in the region. operating by combined cycle. There is no doubt that this situation will generate challenges and, Adding to the above mentioned, we have the started works for why not, new growth opportunities, which we will evaluate seriously Plant Bocamina II and approval of Thermal Plant Quintero, all of them and responsibly as we have done in each opportunity. projects driven by our subsidiary Endesa Chile. We should also mention the trust that the market and the With this financial background, and based on a unique portfolio, shareholders have in the company’s administration. Even though we can remark our leading position in the Latin American energy the share value dropped 6% during 2007, it should not be forgotten market. Our assets in the region have risen 11 % over the past 10 that the previous financial period was impacted with external instability years, totaling to date more than Ch$ 11,400 billion. which hit stock markets throughout the world, and the Chilean market STABILITY was no exception. However, it should be pointed out that, measured in dollars, the Enersis value in the last 10 years has increased by 179% measured in historical US$ dollars reaching to US$ 10,504 Based on this scenario, in a year epitomized by a significant increase million as of December 31. in fuel prices, one of the driest rain seasons in the last 50 years and a considerable increase in Argentine natural gas restrictions, the INVESTMENTS Enersis profits reflected the benefits arising from appropriate asset diversification, both in the terms of generation and in distribution. Before going into details about our main plans in investments, I Likewise, operations in the five countries stabilizes the company’s would like to emphasize the start-up, last December, of the first wind operational flows strengthens the company`s foundations, enabling farm on the Central Interconnected System (SIC) in Canela by the us to solidly face the daily challenges presented in the energy market Endesa Chile subsidiary, Endesa Eco. where we supply power to some 45 million inhabitants. ANNUAL REPORT LETTER FROM THE PRESIDENT 5 This 18 MW capacity project is only the first of many future proposals Chile is a country that has almost no fossil fuels, thus it cannot under development within the Non Conventional Renewable Energies afford not to take advantage of its natural clean, renewable and framework (ERNC). Within this scenario we can also include the start- autochthonous resources such as water, wind and geothermal up of the Palmucho Power Plant operation in the Alto Bio Bio area. energy. This 32 MW capacity unit, that uses the ecological flow from the Ralco At the Enersis Group we are convinced that Chile urgently needs an Power Plant unit, started its operation in November 2007. independent and diversified power grid that will permit self-sustaining As a corporate group we support and contribute to the development development. of this type of energy with the objective to becoming a regional Consequently with this line of development, we commit our support, benchmark and leader. This type of projects of confirms our trough Endesa Chile, for the LNG Project, which becomes fundamental commitment to the diversification of the power grid and the use of for our energy self-sufficiency. autochthonous, renewable and clean resources from an environmental viewpoint, such as water, wind and geothermal energy. COMMITMENT In order to deliver the best electrical service in the region, we at Enersis Group understand that to do this, we must perform permanent In this brief summary the takeover of our ENDESA, in October 2007, investments of the highest quality standards, in terms both of energy by a joint venture of the Spanish firm ACCIONA and the Italian firm distribution and energy generation. ENEL, following three Public Tender Offer (OPA) processes over a In the first of these fields, and aiming at satisfying the higher demand period of more than two years. in our markets demands namely customer satisfaction and improve In view of the above, I would like to extend the peace of mind operating margin and loss reduction, we will provide resources in expressed by ENDESA’s President, Mr. José Manual Entrecanales, on excess of US$ 500 million per year. his first visit to our country and to the region acting in that capacity. In the generation business the plan consists on the input of I would therefore like to repeat his words by pointing out that one of 2,200 MW of new capacity in the five countries we operate in; that is the reasons for his commitment to our grid lies in the leading position to say, 70% of the total. held by ENDESA S.A. in Latin America through Enersis. This new capacity plan over the next five years include the following: This is due to the fact that our Group has a unique asset platform San Isidro II, Los Cóndores, Bocamina II, Neltume, Choshuenco, which is the basis for improving the current world energy model and Quintero, the Ojos de Agua mini hydro unit, Piruquina and Puelo, and helps in facing diverse future challenges. Phase III of the Canela Wind Park. The concentration of fossil fuel producing regions and their social- In addition, the Aysén Project continues to advance, a venture that political instability, and the more than probable shortfall in said was implemented by Endesa Chile through its affiliate HidroAysén, resources, turns our company into a decisive component of the energy and that covers a 2,750 MW capacity installation with an approximate challenge solution. investment of US$ 2,800 million in the 11th Region. 6 enersis07 ANNUAL REPORT Enersis together with its affiliates, Endesa Chile and Chilectra The objective of this web site (www.enersis.cl/ciel) is to broaden confirm their commitment with Latin America, and in particular with and reinforce the topics related to the generation, transmission and Chile, the country from where we manage our businesses in the distribution of electric energy, emphasizing the efficient use of energy Region. We thereby face the future challenges of the energy business and the preservation of the environment; issues which are, at the same with determination, maintaining our position as a leading company time, aligned with the current education programs. in the sector. SUSTAINABILITY Finally, within its usual cultural support policy, Enersis has prepared a book called “Chile, Sustainable Energy”, that shows a country of unequalled natural beauty and with a clear energy vocation. Furthermore, in December, the Enersis Group donated a book In the field of Corporate Social Responsibility, and within a policy of called “Los Ultimos Senderos del Huemul” (The Last Tracks of the common sustainability, the companies of the Enersis Group implement Huemul) to rural schools and public libraries throughout Chile. This specific programs with the clear objetive to adjust to local realities and document, prepared by the Fundacion San Ignacio del Huinay, whose providing answers to the particular needs of the different countries partners are Endesa Chile and the Pontificia Universidad Católica de in which they operate. Valparaíso, summarizes 30 years of research by a group of Conaf and We carry out actions and activities within this framework that are Codeff professionals, conservationists and park rangers motivated in linked to the three basic CSR dimensions: economic, social and preventing the extinction of this emblematic species. environmental. In the case of Enersis, we can mention three relevant highlights: ACKNOWLEDGEMENTS The first is the program to Illuminate Monuments in the South. This is an initiative to equip religious temples in Chile, Colombia and Peru I would like to share with you the prizes we have received for Social with modern electric systems. In our country the project involved the Responsibility, awards that confirm that our actions are not only signing of an agreement with the Episcopal Conference in October focused on obtaining good and better results from a financial point of 2000 which has been renewed twice: in 2004 and at the beginning view and thereby satisfying our shareholders, but also that we develop of 2007. On the latter occasion, the Enersis Group commitment was and implement our activity – of generating, transmitting and distributing extended until 2011. electrical power - while we preserve and respect the environment as In Chile 46 religious temples and other buildings had already well as the communities that surround our installations. benefited from this project as of the end of the previous period. Amongst the acknowledgements received during 2007, the following Furthermore, these significant endeavors lead to the company being stand out: awarded the National Monuments Conservation Prize in 2005. • Diario Financiero Prize to the 50 Companies Super Sales of The second highlight is related to the CIEL Educational Portal 2006 (Electric Energy Information Center), focused to primary and middle • The prize to the 10 most important Latin American Electric energy school students throughout the country. Companies in the Decade, from Business News Americas. ANNUAL REPORT LETTER FROM THE PRESIDENT 7 • Acknowledgement of two Enersis workers for their work on the to be able to say that Enersis, within a climate of cordiality and trust, “Un Mejor Empleo para Chile “program (The Best Job for Chile) has negotiated the execution of a collective bargaining agreement sponsored by the Corporacion Simón de Cirene. with its Professional University Workers Union and the Nº1 Workers Union confirming that within our corporate action we are concerned We can add to these awards the distinctions obtained by our about addressing the professional and personal improvement of our subsidiaries Endesa Chile and Chilectra, namely: workers, ensuring their safety, health and working environment. • The CIGRÉ Prize for Corporate Social Responsibility (CSR) and To sum up, I would like to thank all the employees and executives Technological Innovation awarded to Endesa Chile. of the different companies for their performance during 2007 and for • The AmCham Prize to the Good Corporate Citizen, awarded to the strong commitment from each one with their respective company, Fundacion Pehuén, entity sponsored by Endesa Chile. the same commitment that we as a Group have with Chile and the • The prize for the 2007 Best Sustainability Report awarded to Endesa remainder of the region. Chile by Accion RSE. Ladies and Gentlemen Shareholders, I am sure that the future holds • The Avonni Pro Innovation Forum Prize, that together with the CPC a number of corporate growth opportunities. We have the foundation -Confederacion de la Produccion y del Comercio (Production and and the necessary financial stability to face the challenges and tests Trade Confederation) - and the Ministry of Economy, distinguished imposed on us by the energy sector. Chilectra as the most innovative company in the country. Once again I thank you for your trust, and I reiterate our commitment • First place, at a national level and in the Metropolitan Region, to improve, day by day, our company’s performance aimed at satisfying to Chilectra in the survey “Chile opina: ¿Somos responsables not only yourselves, our shareholders, but also our customers, socialmente?” (Chile answers: Are we sociably responsible?), collaborators, communities, and of course, our workers. implemented by Fundación PROhumana. HUMAN RESOURCES Please receive my warmest greetings, All of this has been achieved thanks to the contribution received from each one of our company workers, a team of unique human capital. For this reason, I want particularly to acknowledge the performance of thousands of Enersis Group employees and collaborators who, day by day, contribute each in their own way to this great corporate project. In a year that has not been exempt from certain labor agitation Pablo Yrarrázaval Valdés triggering strike development in industries as diverse as mining and Chairman forestry affecting both their production and their image, I am proud 8 enersis07 ANNUAL REPORT 2007 HIGHLIGHTS Municipality of Providencia. This initiative is part of program for Illuminating Monuments in the South. On september, the merger of the Colombian generating subsidiaries Emgesa and Betania took place. i n J u n e, the Business News Americas news agency – through its magazine TEN – distinguished Enersis as one of the 10 most outstanding Latin American energy companies of the decade. tOwArds the end Of July, Enersis modified its Board of Directors and the current Chief Executive Officer of ENDESA for Latin America, Mr. Pedro Larrea Paguaga, took over as the company’s new Director. in July, the International ratings agency Standard & Poor’s raised the Enersis and Endesa Chile international rating to BBB (stable), both of which were granted an investment grade. On April the first stage of the San Isidro II plant was commissioned, whereby a maximum capacity of 248 MW was added to the main electricity network in Chile. This plant’s in combined cycle went into commercial operations on January, 2008 increasing capacity to 353 MW. At the end O f A pr i l, Enersis delivered the new lighting to the Catedral Castrense Señora del Rosario church, located in the in mid september, Endesa Chile started the construction of the Bocamina II thermo-electrical plant. This unit will have an installed capacity of 350 MW and would start operating in 2010. O n s e p t e m b e r , t h e B o a r d of Directors of Endesa Chile approved the construction of the 240 MW Quintero Thermal Plant, which would start operations in 2009. in OctOber, Enersis organized the Third International Convention for Chilean ISSUERS, an event attended to by more than 200 local and international executives related to the local and international financial areas. in n Ovember, Enersis formally delivered the new lighting system for the Rancagua cathedral, which that is part of the Illuminating M o n u m e n t s i n t h e S o u t h program. O n d e c e m b e r , t h e C h i e f Executive Officer of ENDESA, José Manuel Entrecanales, met with Mrs. Michelle Bachelet, the President of the Republic of Chile. since OctOber 10, 2007 the final control of ENDESA, S.A. and Endesa Internacional S.A. was taken over by ENEL S.p.A and ACCIONA S.A. ANNUAL REPORT 2007 HIGHLIGHTS 9 in december, the Enersis Group donated to rural schools and public libraries throughout Chile a book entitled “Los Ultimos Senderos del Huemul”, (The Final Tracks of the Huemul) that summarizes 30 years of research. the cOnsulting Agency bureAu ve r i tA s ch i l e, specialists in auditing services, certified the declared gross capacity of the Endesa Chile power generating plants in L atin A mer ic a that amounted to 13,707 MW. in december, the Enersis Group, through its distributing companies, supplied electricity to almost 12 million customers in Latin America. the energy demAnd continued to grow in the countries where we operate at almost 6%, which confirms the high consumption potential in the region. OperAting revenues increased by 12.8% to 4,686,676 million, which is explained by 24.2% increased in revenues in the generation and transmission businesses, and by 3.9% in the distribution business. th e s h A r e v A l u e c l o s e d a t Ch$ 159.85 while the value of the American Depositary Share (ADS) amounted to US$ 16.03. in OctOber, the Enersis Group launched the CIEL Educational Portal (Electric Energy Information Center). d u r i n g t h A t s A m e m O n t h , Endesa Chile’s new Palmucho hydro-electric plant started its commercial operations. This plant is located at the foot of the Ralco dam in the Alto Bio Bio area, and will contribute with 32 MW to the Central Interconnected System (SIC). On d ecember 6, Endesa Chile inaugurated Canela, the first Wind Farm of the Central Interconnected System (SIC). Canela contributes a c a p a c i t y o f 18 M W t o t h e country’s main electricity system. in mid december, Enersis launched a book entitled “Chile Energia Sostenible” (Chile, Sustainable Energy), that describes the main characteristics of the environment in which we are involved. 10 enersis07 enersis07 ANNUAL REPORT COMPANY IDENTIFICATION Name Location Enersis S.A. Santiago, being able to establish agencies or branches in other parts of the country or abroad Kind of Company Publicly held limited liability stock company ANNUAL REPORT COMPANY IDENTIFICATION 11 Tax Nº Address Telephones Fax P.O. Box Web Site Electronic Mail Securities Registry Nº External Auditors 94,271,000 - 3 Santa Rosa Nº 76, Santiago, Chile (56-2) 353 4400 - (56-2) 378 4400 (56-2) 378 4788 1557, Santiago www.enersis.cl informaciones@e.enersis.cl Nº 175 Deloitte & Touche Subcribed and Paid Capital (ThCh$) 2.594.015.458 Chilean Stock Exchanges Nick Name ENERSIS New York Stock Exchange Nick Name Madrid Stock Exchange Nick Name ENI XENI ADR Program Custodian Bank ADR Program Depositary Bank Latibex Custodian Bank Latibex Link Entity Banco de Chile Citibank N. A. Banco Santander Santander Central Hispano Investment S.A. Chilean Credit Rating Agencies Feller Rate and Fitch International Credit Rating Agencies Fitch, Moody´s and Standard & Poor´s 12 enersis07 ANNUAL REPORT 01. CORPORATE BACKGROUND the same Public Notary. The company’s incorporation was authorized and its corporate by-laws were approved through Resolution Nº 409-S dated July 17, 1981 by the Securities and Insurance Commission. The company that origined to Enersis S.A. was initially formed under The exerpt of the articles of incorporation and the approved by-laws the name of Compañía Chilena Metropolitana de Distribucion Electrica were registered in the Santiago Real Estate Registrar on page 13,099 S.A. according to the public deed dated June 19, 1981 granted by the Nº 7,269 corresponding to the year 1981, and were published in the Public Notary’s Office of Patricio Zaldívar Mackenna in Santiago and it Official Gazette of July 23, 1981. To date, the Enersis corporate was modified by public deed dated July 13 of the same year, issued by by-laws have undergone a number of amendments. On August 1, ANNUAL REPORT COMPANY IDENTIFICATION 13 1988, the company’s name was changed to Enersis S.A. The latest i) The acquisition, operation, construction, rental, administration, amendment is set out in the public deed dated April 13, 2006, certified intermediation, trading and disposal of all kinds of movable and by the Santiago Public Notary Patricio Zaldívar Mackenna, and its immovable goods, either directly or through subsidiary or affiliate exerpt was registered in the Santiago Real Estate Registrar, on page companies; ii) All kinds of financial assets, including shares, bonds 15,343, Nº 10,611 of the 2006 Business Register and subsequently and debentures, tradable items and, in general, all kinds of titles or published in the Official Gazette on April 22, 2006. securities and company contributions, be this either directly or through subsidiary or affiliate companies. 02. BUSINESS PURPOSE The company’s purpose is to explore, develop, operate, generate, distribute, transmit, transform and sell energy in any of its forms or types, in the country or abroad, directly or through other companies, in addition to telecommunications activities and the provision of engineering consulting. Part of its objective is to invest and manage its subsidiaries and associate companies, generators, transmitters, distributors or traders of electric energy and whose line of business is any of the following: (i) energy, in any of its forms or types, (ii) the supply of public services or whose main raw material is energy, (iii) telecommunications and IT, and (iv) the intermediary business through the Internet. In line with this main objective, the company developed the following functions: a) promote, organize, build, modify, dissolve or liquidate companies of any nature who have a similar corporate purpose as its own; b) propose investment, financing and business policies to affiliate companies, as well as the accounting criteria and systems that these should follow; c) supervise subsidiary company management: d) supply subsidiary or associate companies with the necessary financing for their business development, and also, provide management services, financial, technical and legal assessment, auditing services to subsidiary companies and, in general, any type of service that may be necessary for their best performance. In addition to its main objective and acting under the limits established by the Investments and Financing Policy approved by the General Shareholders Meeting, the Company may invest in: 14 enersis07 ANNUAL REPORT OWNERSHIP AND CONTROL 01. PROPERTY OWNERSHIP STRUCTURE The company’s capital is divided into 32,651,166,465 no par value stock, pertaining to one same and unique series. As of December 31, 2007, the total number of shares have been fully subscribed and paid-in and ownership was distributed in the following ANNUAL REPORT OWNERSHIP AND CONTROL 15 SHAREHOLDER NUMBER OF SHARES manner: Endesa Internacional, S.A. Pension Funds ADR’s (Citibank N.A.) Stock Brokers, Insurance Companies and Mutual Funds Citibank Chile (Chapter XIV ) Foreign Investment Funds Retail Holders Total 02. HOLDING COMPANY IDENTIFICATION 19,794,583,473 5,747,547,720 2,890,139,300 2,425,193,061 471,646,933 137,341,006 1,184,714,972 32,651,166,465 % 60.62% 17.60% 8.85% 7.43% 1.44% 0.42% 3.64% 100% (ENEL ENERGY EUROPE S.r.L in turn is controlled 100% by ENEL S.p.A); ACCIONA, S.A., with a 5.01% share and FINANZAS According to what is established by Title XV of Law Nº 18,045, DOS, S.A., with a 20.0% share (FINANZAS DOS, S.A. in turn is the direct holding company is Endesa Internacional, S.A., a Spanish controlled 100% by ACCIONA, S.A.). The ENDESA, S.A. free float corporation that holds 60.62% of the Enersis group. as of December 31, 2007 was 7.937%. Endesa Internacional, S. A., in turn is controlled 100% by On March 26, 2007, ACCIONA, S.A., and ENEL ENERGY ENDESA, S.A., a corporation incorporated in the Kingdom of Spain EUROPE S.r.L., signed an agreement for the shared management and whose main shareholders as of December 31, 2007, and pursuant of ENDESA, S.A. The mentioned agreement was reported to the to that published by the CNMV (Spanish Securities and Investments CNMV as a relevant fact on the same day it was signed and it can be Board) are: ENEL ENERGY EUROPE S.r.L. with a 67.053% share viewed on the Securities Board’s web site (www.cnmv.es). 16 enersis07 ANNUAL REPORT 03. LIST OF THE 12 MAJOR COMPANY SHAREHOLDERS: As of December 31, 2007, Enersis was owned by 8,455 shareholders. The 12 major shareholders were: NAME Endesa Internacional,S.A. Citibank N.A. (in compliance with circular 1375 SVS) AFP Provida S.A.* AFP Habitat S.A.* AFP Cuprum S.A.* AFP Santa María S.A. * AFP Bansander S.A.* Banchile Corredores de Bolsa S.A. Citibank Chile Cta. de Terceros Cap. XIV Res AFP Planvital S.A.* Larraín Vial S.A. Corredora de Bolsa Santander Investment S.A. Corredores de Bolsa Subtotal 12 shareholders Other 8,443 shareholders TOTAL 8,455 shareholders * Pension Funds TAX NO. 59,072,610-9 97,008,000-7 98,000,400-7 98,000,100-8 98,001,000-7 98,000,000-1 98,000,600-K 96,571,220-8 97,008,000-7 98,001,200-K 80,537,000-9 96,683,200-2 NUMBER OF SHARES 19,794,583,473 2,890,139,300 1,790,291,654 1,513,040,675 949,141,449 648,693,522 635,653,034 522,653,676 471,646,933 210,727,386 172,599,915 168,196,303 29,767,367,320 2,883,799,145 32,651,166,465 (%) 60.62% 8.85% 5.48% 4.63% 2.91% 1.99% 1.95% 1.60% 1.44% 0.65% 0.53% 0.52% 91.17% 8.83% 100.00% ANNUAL REPORT OWNERSHIP AND CONTROL 17 04. MAJOR OWNERSHIP CHANGES During 2007, the major changes in Enersis’ property ownership were the following: NAME Citibank N.A. (Per circular 1375 SVS) AFP Provida S.A.* AFP Habitat S.A.* AFP Cuprum S.A.* AFP Santa María S.A. * AFP Bansander S.A.* Banchile Corredores de Bolsa S.A. Citibank Chile Cta. de Terceros Cap. XIV Res AFP Planvital S.A.* Larraín Vial S.A. Corredora de Bolsa Santander Investment S.A. Corredores de Bolsa Celfin Capital S.A. Corredores de Bolsa * Pension Funds TAX NO. 97,008,000-7 98,000,400-7 98,000,100-8 98,001,000-7 98,000,000-1 98,000,600-K 96,571,220-8 97,008,000-7 98,001,200-K 80,537,000-9 96,683,200-2 84,177,300-4 SHARES AT 31/12/2006 2,791,284,650 1,952,198,706 1,518,357,657 863,954,735 690,445,050 848,566,411 429,730,676 611,256,799 214,565,536 185,024,008 74,894,288 120,245,556 SHARES AT 31/12/2007 2,890,139,300 1,790,291,654 1,513,040,675 949,141,449 648,693,522 635,653,034 522,653,676 471,646,933 210,727,386 172,599,915 168,196,303 165,360,280 % CHANGE 3.54% (8.29%) (0.35%) 9.86% (6.05%) (25.09%) 21.62% (22.84%) (1.79%) (6.71%) 124.58% 37.52% 18 enersis07 ANNUAL REPORT SHARE TRANSACTIONS ANNUAL REPORT SHARE TRANSACTIONS 19 01. STOCK TRADING AT STOCK EXCHANGES The quarterly transactions of the last 3 years in stock exchanges where Enersis shares are traded, both in Chile, through the Santiago Stock Exchange (Bolsa de Comercio de Santiago), and through the Chilean Electronic Stock Exchange (Bolsa Electronica de Chile), and the Valparaiso Stock Exchange (Bolsa de Valores de Valparaíso ), as in the United States of America and Spain through the New York Stock Exchange (NYSE) and the Latin-American Securities Exchange, on the Madrid Stock Exchange (Latibex) (Bolsa de Valores Latinoamericanos de la Bolsa de Madrid (Latibex), respectively, are detailed below: SANTIAGO STOCK EXCHANGE (BOLSA DE COMERCIO DE SANTIAGO) SANTIAGO STOCK EXCHANGE UNITS AMOUNT (CH$) AVERAGE PRICE 1st Quarter 2005 1,348,339,507 129,184,082,805 2nd Quarter 2005 2,112,530,098 229,190,716,985 3rd Quarter 2005 1,840,936,792 215,658,892,589 During 2007, 10,336 million shares 4th Quarter 2005 2,212,992,708 265,485,390,022 were traded at the Santiago Stock Exchange, equivalent to Ch$ 1,881,234 million. As of December, the closing price per share was Ch$ 159.85. 1st Quarter 2006 1,963,504,194 241,782,332,100 2nd Quarter 2006 1,391,561,107 170,737,146,206 3rd Quarter 2006 1,424,604,249 185,750,114,705 4th Quarter 2006 2,935,194,633 471,034,884,328 1st Quarter 2007 2,326,545,937 403,238,785,712 2nd Quarter 2007 2,281,519,210 448,872,471,686 3rd Quarter 2007 2,623,759,573 482,941,651,473 4th Quarter 2007 3,104,262,960 546,181,448,622 CHILEAN ELECTRONIC STOCK EXCHANGE (BOLSA ELECTRÓNICA DE CHILE) CHILEAN ELECTRONIC STOCK EXCHANGE 1st Quarter 2005 2nd Quarter 2005 254,172,086 476,168,653 24,362,432,413 51,910,060,501 1,749 million shares were traded at the Chile Electronic Stock Exchange during the year, the equivalent of Ch$ 314,869 million; as of December the share closed at Ch$ 159.50. 3rd Quarter 2005 498,204,288 58,397,117,390 4th Quarter 2005 1st Quarter 2006 2nd Quarter 2006 3rd Quarter 2006 4th Quarter 2006 1st Quarter 2007 2nd Quarter 2007 3rd Quarter 2007 569,457,331 363,061,858 280,361,371 278,723,806 551,462,369 482,727,433 327,721,596 433,727,621 68,028,424,373 44,427,922,583 34,161,027,229 36,216,066,265 88,445,858,217 83,082,386,777 64,327,071,276 79,890,053,929 4th Quarter 2007 504,779,498 87,569,943,661 UNITS AMOUNT (CH$) AVERAGE PRICE 95.81 108.49 117.15 119.97 123.14 122.69 130.39 160.48 173.32 196.74 184.06 175.95 95.85 109.02 117.22 119.46 122.37 121.85 129.94 160.38 172.11 196.29 184.19 173.48 20 enersis07 ANNUAL REPORT VALPARAISO STOCK EXCHANGE (BOLSA DE VALORES DE VALPARAÍSO) On the Valparaiso Stock Exchange 42 million shares were traded, amounting to Ch$ 7,671 million; as of December, the share closed at Ch$ 161.11. VALPARAISO STOCK EXCHANGE 1st Quarter 2005 2nd Quarter 2005 3rd Quarter 2005 4th Quarter 2005 1st Quarter 2006 2nd Quarter 2006 3rd Quarter 2006 4th Quarter 2006 1st Quarter 2007 2nd Quarter 2007 3rd Quarter 2007 4th Quarter 2007 NEW YORK STOCK EXCHANGE (NYSE) NEW YORK STOCK EXCHANGE The Enersis stock started trading on the New York Stock Exchange (NYSE) on October 20, 1993. An Enersis ADS consists of 50 shares and its mnemonic name is ENI. Citibank N.A. acts as an escrow bank and the Banco de Chile as the custodian in our country. During 2007, 84 million American Depositary Receipts (ADS) were traded in the United States of America amounting to US$1,478 million. The December ADS closing price was US$ 16.03. 1st Quarter 2005 2nd Quarter 2005 3rd Quarter 2005 4th Quarter 2005 1st Quarter 2006 2nd Quarter 2006 3rd Quarter 2006 4th Quarter 2006 1st Quarter 2007 2nd Quarter 2007 3rd Quarter 2007 4th Quarter 2007 UNITS 21.367.282 12,853,040 9,405,452 21,499,005 11,090,794 7,727,889 8,279,320 16,427,067 8,364,095 9,737,577 7,417,521 16,507,087 ADS 19.729.400 24,619,700 28,894,300 27,267,100 24,652,200 20,778,900 13,510,900 20,414,300 19,608,400 19,283,100 22,964,900 21,992,500 AMOUNT (CH$) AVERAGE PRICE 2.057.215.407 1,427,487,132 1,107,429,833 2,591,673,759 1,365,417,295 938,354,614 1,049,392,923 2,582,363,519 1,446,466,587 1,914,700,194 1,362,390,508 2,947,390,529 96.28 111.06 117.74 120.55 123.11 121.42 126.75 157.20 172.94 196.63 183.67 178.55 AMOUNT (US$) AVERAGE PRICE 162.167.776 232,313,951 307,507,588 309,549,753 290,316,633 242,325,610 161,661,972 299,702,338 314,610,895 358,148,873 411,880,074 393,529,397 8.22 9.44 10.64 11.35 11.78 11.66 11.97 14.68 16.04 18.57 17.94 17.89 LATIN AMERICAN SECURITIES EXCHANGE OF THE MADRID STOCK EXCHANGE (LATIBEX) (BOLSA DE VALORES LATINOAMERICANOS DE LA BOLSA DE MADRID) The Enersis shares started trading on the Latin American Securities Exchange of the Madrid Stock Exchange (Latibex) on December 17, 2001. The company’s contracting unit is 50 shares and its mnemonic name is XENI. The Santander Central Hispano Bolsa S.A. S.V.B. acts as the linking agents and the Banco Santander is the custodian in Chile. During 2007, 1.3 million shares were traded, the equivalent of €17 million. The closing share price as of December was € 11.01. LATIBEX 1st Quarter 2005 2nd Quarter 2005 3rd Quarter 2005 4th Quarter 2005 1st Quarter 2006 2nd Quarter 2006 3rd Quarter 2006 4th Quarter 2006 1st Quarter 2007 2nd Quarter 2007 3rd Quarter 2007 4th Quarter 2007 BLOCKS 590.534 559,731 449,276 499,837 472,690 479,532 433,281 475,391 468,101 426,654 206,383 250,092 ANNUAL REPORT SHARE TRANSACTIONS 21 AMOUNT(€$) AVERAGE PRICE 3.711.369 4,172,973 3,916,131 4,829,056 4,652,963 4,411,956 4,059,131 5,367,646 5,720,875 5,826,061 2,701,883 3,023,238 6.28 7.46 8.72 9.66 9.84 9.20 9.37 11.29 12.22 13.66 13.09 12.09 02. STOCK TRADING BY BOARD MEMBERS AND OTHER SENIOR EXECUTIVES SHAREHOLDER TAX N° BUYER/ SELLER TRANSACTION DATE NUMBER OF SHARES TRADED TRANSACTION UNIT PRICE TRANSACTION TOTAL AMOUNT PURPOSE OF THE TRANSACTION RELATIONSHIP WITH THE COMPANY Ricardo Alvial Muñoz 7,330,389-3 Inversiones Santa Verónica Ltda. 79,880,230-5 Martín Serrano Spoerer 13,039,523-6 Buyer Buyer Buyer 30/07/07 16/08/07 19/12/07 21,860 500,000 31,050 183.00 160.50 159.50 4,000,380 Financial Investment Risks and Investments Director 80,250,000 Financial Investment Related to Hernán Somerville, Director 4,952,475 Financial Investment Chief of International Finance 22 enersis07 enersis07 ANNUAL REPORT 2008 DIVIDEND POLICY 01. DISTRIBUTABLE PROFIT The distributable profit for the 2007 period is indicated below: Net income for the year Amortization of negative goodwill Net income THOUSAND CH$ 188,376,410 4,421,859 183,954,551 ANNUAL REPORT 2008 DIVIDENDS POLICY 23 The following table shows dividends by share paid over recent years. DIVIDEND N° KIND OF DIVIDEND DATE OF CLOSING PAID DATE CH$ PER SHARE 71 72 73 74 75 76 Definitive 04/19/01 04/25/01 1.806391 Definitive 04/14/05 04/20/05 0.416540 Definitive 03/28/06 04/03/06 1.000000 Interim 12/19/06 12/26/06 1.110000 Definitive 05/16/07 05/23/07 4.890330 Interim 12/20/07 12/27/07 0.531190 YEAR CHARGED TO 2000 2004 2005 2006 2006 2007 02. DIVIDEND POLICY FOR THE YEAR 2008 The Board is willing to propose to the Ordinary Shareholders Meeting of Enersis, which will be celebrated within the first tour months 03. SUMMARY OF SHAREHOLDERS’ COMMENTS AND PROPOSALS of 2009, a distribution of an amount equivalent to 70% of the net No comments were received in Enersis with respect to the business income for 2008. between January 1 and December 31, 2007 from the majority In addition, the Board has the intention of distribute interim dividends shareholders or groups of shareholders representing 10% or more against net income for the year 2008 to 15% of net income as of of the issued shares with voting rights, in accordance with provisions September 30, 2008, according to the financial statements at that of clause 74 of Law 18,046 and clauses 82 and 83 of the regulations date, being payable as of December, 2008. of the Corporations Law. The definitive dividend will correspond of the amount approved by the General Ordinary Shareholders Meeting that will take place on first four months of 2009. The compliance of this program will keep conditioned, in terms of dividends, to the effective income, as well as the results of projections periodically made by the company or the existence of certain conditions. 24 enersis07 ANNUAL REPORT INVESTMENT AND FINANCING POLICY 2007 ANNUAL REPORT INVESTMENT AND FINANCING POLICY 25 The General Ordinary Shareholders Meeting held on April 24, 2007, approved the Investment and Financial Policy indicated below: 01. INVESTMENTS A) INVESTMENT AREAS B) MAXIMUM INVESTMENT LIMITS Enersis will invest, as authorized by its by-laws, in the following The maximum investment limits for each investment area are areas: the following: • Contributions for investment in or for the formation of subsidiary or • Investments in electric sector affiliates, those needed for these affiliate companies, whose activities are aligned, related or linked affiliates to fulfill their respective social obligations. to any forms or types of energy or the supply of public services or • Investments in other affiliate companies, In such a way that whose main raw material is energy. the sum of the proportions of the corresponding fixed assets of • Investments consistent with the acquisition, construction, rental, the participation of each one of these affiliate companies does administration, trading and disposal of any class of immovable not surpass the proportion of the fixed assets corresponding to goods, be this directly o through subsidiary companies. the participation of the affiliates in the electricity sector, and of • Other investments in every type of financial asset, deed or Enersis S.A. security. 26 enersis07 ANNUAL REPORT C) PARTICIPATION IN THE CONTROL OF INVESTMENT AREAS In order to control the investment areas and pursuant to that established by Enersis’ corporate purpose, the following procedure will be pursued, wherever possible: • At the General Shareholders Meetings of the subsidiary and affiliate corporations, the appointment of directors consistent with the Enersis holding in said company shall be proposed; these individuals should preferably stem from company directors or executive officers or its subsidiaries. • Investment, financial and business policies will be proposed to the subsidiary companies, as well as the accounting criteria and the systems that they should abide by. • The management of the subsidiaries and affiliates will be supervised. • Permanent control of the debt limits will be maintained, to the point that the investments or contributions implemented or that are planned for implementation do not represent a non-standard variation from the parameters defined by the maximum investment limits. ANNUAL REPORT INVESTMENT AND FINANCING POLICY 27 02. FINANCING A) MAXIMUM LEVEL OF DEBT C) ADMINISTRATION ATTRIBUTES FOR AGREEING WITH CREDITORS ON THE GRANTING OF GUARANTEES The maximum level of debt at Enersis is established by a total debt/ assets plus minority interest ratio equalite 1.75 times the consolidated The administration of the Company may agree with creditors to balance. grant real or personal pledges, in conformity with the law and social B) ADMINISTRATION ATTRIBUTES FOR AGREEING WITH CREDITORS ON DIVIDEND ALLOCATION RESTRICTIONS D) ESSENTIAL ASSETS FOR COMPANY PERFORMANCE statutes. Restrictions regarding the distribution of dividends may be agreed The shares that represent the contribution that Enersis does to to only if such restrictions have been previously approved of by the the subsidiary Chilectra S.A. are considered essential assets for General Shareholders Meeting (Common and Extraordinary). Enersis’ operation. 28 enersis07 ANNUAL REPORT ADMINISTRATION AND PERSONNEL 01. BOARD OF DIRECTORS ADMINISTRATION AND PERSONNEL ANNUAL REPORT 29 CHAIRMAN VICECHAIRMAN DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR Pablo Yrarrázaval President, of the Santiago Stock Exchange Tax No. 5,710,967-K Rafael Miranda Industrial Engineer Instituto Católico de Artes e Industrias de Madrid Tax No. 48,070,966-7 Pedro Larrea Mining Engineer Universidad Politécnica de Madrid Tax No: 48,077,275-k Juan Ignacio de la Mata Attorney at Law Universidad de Madrid Tax No. 48,101,910-9 Hernán Somerville Universidad de Chile Tax No. 4,132,185-7 Patricio Claro Industrial Civil Engineer Universidad de Chile Tax No. 5,206,994-7 Eugenio Tironi Sociologist École des Hautes Études en Sciences Sociales, Paris, France Tax No. 5,715,860-3 SECRETARY TO THE BOARD Domingo Valdés Lawyer Universidad de Chile Tax No. 6,973,465-0 Enersis is managed by a 7-member Board of Directors each of whom remains in office for a period of 3 years and can be reelected. The Board of Directors was appointed at the General Ordinary Shareholders Meeting held on March 21, 2006. The Chairman, the Vice-President and the Board Secretary were appointed at a Board of Directors Meeting held on March 29, 2006. At a Board of Directors Meeting held on July 27, 2007, Mr. Pedro Larrea Paguaga was appointed director to replace Mr. Rafael Español Navarro. Pursuant to article 32 of Corporations Law Nª 18,046, the full Board of Directors will be renewed at the next General Ordinary Shareholders Meeting. DIRECTORS’ REMUNERATION Pursuant to article 33 of the Corporations Law Nº 18,046 and the XVI Article of the Corporate By-Laws, the General Ordinary Shareholders Meeting held on April 24, 2007 approved the fees to be paid to the members of the Enersis Board of Directors for the 2007 period. 30 enersis07 ANNUAL REPORT The amounts paid out as of December 31, 2007 to the Directors of Enersis as members of the Board of Directors Committee and the Auditing Committee, and to those company directors who are acting or acted during the 2007 period as Directors in subsidiaries, are detailed below: DIRECTOR TITLE EXCERCISE PERIOD ENERSIS BOARD (*) SUBSIDIARIES BOARD BOARD COMMITTEE (*) AUDITING COMMITTEE (*) VARIABLE ON CHARGE TO 2006 PROFITS (**) AS OF DECEMBER 2007, AMOUNTS IN CHILEAN PESOS Pablo Yrarrázaval Rafael Miranda Pedro Larrea Juan Ignacio de la Mata Hernán Somerville Patricio Claro Eugenio Tironi Rafael Español Ernesto Silva TOTAL Chairman Vicechairman Director Director Director Director Director Director Director 01.01.07 to 12.31.07 01.01.07 to 12.31.07 08.01.07 to 12.31.07 01.01.07 to 12.31.07 01.01.07 to 12.31.07 01.01.07 to 12.31.07 01.01.07 to 12.31.07 01.01.07 to 07.31.07 (***) 50,481,122 36,859,172 10,484,235 25,240,561 25,240,561 25,240,561 25,240,561 14,756,327 - 213,543,100 (*) Gross Amounts (**) Includes variable remmunerations on charge to 2006 profits paid in and registered as of May, 2007 (***) Ernesto Silva Bafalluy was Director until March 21, 2006. Variable remuneration correspond to year 2006 - - - - - - - - - - 8,216,331 - - - 8,216,331 8,216,331 - - - 24,648,993 - - - 2,723,245 2,723,245 705,038 - 2,018,207 - 8,169,735 16,893,904 12,670,428 - 8,446,952 8,446,952 6,618,708 8,446,952 8,446,952 1,828,244 71,799,092 BOARD OF DIRECTORS CONSULTANCY EXPENSES Enersis Board of Directors’ Committee. Subsequently, the During the first session of the period, held on January Enersis Board of Directors’ Committee, at its third session on 24, 2007, the Board of Directors’ Committee examined the The Board of Directors incurred no consultancy expenses March 29, 2006 agreed to appoint Mr. Pablo Yrarrázaval as Company’s Individual and Consolidated Financial Statements during the 2007 period. Chairman of before mentioned committee and Mr. Domingo as of December 31, 2006, its Notes, its Income Statement 02. BOARD OF DIRECTORS’ COMMITTEE ACTIVITIES OF THE ENERSIS BOARD OF DIRECTORS’ COMMITTEE Valdés as its Secretary. and Relevant Facts, as well as the External Auditors’ and Account Inspector Reports. Furthermore, the Board of Directors’ Committee took formal notice of the report prepared by the External Auditors regarding wire transfers and money brokering, pursuant to that established by Joint Circular Nº Pursuant to article 50 bis of the Corporations Law 18,046, The Board of Directors’ Committee met 12 times during 960 of the Superintendence of Banks and Financial Institutions Enersis formed a 3-member Board of Directors’ Committee the year 2007. It examined and approved the data regarding and the Securities and Insurance Commission. In addition, the whose faculties and duties are established by the mentioned the operations stated in article 89 of the Corporations Law Nº Board Committee made a proposal to the Company’s Board article. On March 29, 2006 the Company Board of Directors 18,046 reporting on the mentioned transactions. In addition, to appoint as Independent External Auditing the firm Deloitte appointed, Mr. Pablo Yrarrázaval (associated to the controller), specific issues were dealt with in these sessions, as detailed & Touche for the 2007 period; they also agreed on a proposal Mr. Hernán Somerville (associated to the controller) and below: Mr. Patricio Claro (independent director) as members of the to the Board to appoint the firms Feller Rate Clasificadora de Riesgo Limitada and Fitch Chile Clasificadora de Riesgo ANNUAL REPORT ADMINISTRATION AND PERSONNEL 31 Limitada as private national risk classifiers, and the firms and Banco Bice and/or its subsidiaries during the course of review of background data received and in light of preserving Fitch Ratings, Moody’s Investors Service and Standard & ordinary placements of cash surplus and other normal financial the Strategic Alliance, it is reasonable to agree to the proposed Poor’s International Ratings Services as private classifiers operations executed by the Enersis Treasury Department, modification. Consequently, for the better social interest of of international risk for Enersis during the 2007 period. The taking into account the fact that the director Mr. Hernán Enersis and abiding to normal market principles of equity, the Board of Directors’ Committee also approved the text to be Somerville is also a director of Corpbanca, and that the Enersis Board of Directors’ Committee considered it proper presented to the Company’s General Ordinary Shareholders director Mr. Patricio Claro is also a director of Banco Bice. to rate as suitable the requested modification consisting of Meeting regarding the activities developed by the Committee At its sixth session on June 28, 2007, the Board Committee replacing the advance notice period foreseen in the fourth during the 2006 period, as well as the expenses incurred, declared it had reviewed operations between Enersis and clause, item one of the Strategic Alliance that is currently set including consultancy expenses during said period. It also related persons during the month of May, 2007. at three months, by a one month period. declared having reviewed the SAP software service provider At the seventh session held on July 27, 2007, the Board of At the tenth session held on October 30, 2007, the Board of and license usage agreement, to be signed by the Enersis Directors’ Committee reviewed the Individual and Consolidated Directors’ Committee reviewed the Individual and Consolidated subsidiary, Synapsis Soluciones y Servicios IT Limitada Financial Statements as of June 30, 2007 a well as the Financial Statements as of September 30, 2007, its Notes, (Synapsis) and Endesa Servicios S.L. (Endesa Servicios), external auditors’ report. and Income Statement and Relevant Facts. subsidiary of Endesa, S.A. (Enersis’ parent company) finding At the eighth session held on August 30, 2007, the Board At the eleventh session dated November 28, 2007, the it biding to normal market equity principles. of Directors’ Committee declared it had reviewed the service Board of Directors’ Committee agreed to put on record that At its second session held on February 28 2007, the provider contract and the assignment of usage license rights it had taken formal and express notice of the Enersis Letter of Board of Directors Committee declared it had reviewed the on software for the development of a equity risk information Internal Control, dated November 15, 2007, prepared by the remunerations systems and compensation plans for Company system that will help control and manage the information and Company’s External Auditors, Deloitte & Touche referred to by managers and main executives and decided that a retention the documents administered by the Investments and Risk Circular Nº 980 of the Securities and Insurance Commission. policy for key executives and for hiring young executives Management at Enersis, finding it abiding to normal market Furthermore, the Committee Chairman made reference to the should be designed and implemented. principles of equity. Furthermore, it declared having reviewed Strategic Alliance signed by Endesa S.A. (the Enersis head- In its third session dated March 28, 2007, the Committee the service provider contract and the waiver of software usage office) and Enersis, its main content material and a proposed declared it had reviewed the transfer to Enersis of 22,767 license rights that the Company will soon be signing with its modification to the automatic renewal period. Consequently, quotas currently the property of Synapsis, Soluciones y subsidiary “Synapsis Soluciones y Servicios IT Limitada” the Enersis Board of Directors’ Committee considered it proper Servicios IT Limitada in Synapsis Argentina SRL, stating (Synapsis), in order to implement at Enersis the Procurement to rate the requested modification consisting in replacing the that the transfer be carried out under similar normal market Management solution called “SAGA” as well as the supply and automatic renewal period foreseen in the fourth clause of the equity conditions. installation of the certificates required to encrypt the pertinent Strategic Alliance that is currently set at one year by a three In its fourth session on April 25, 2007, the Company’s information, finding it abiding to normal market principles of month period as appropriate for the better social interest of Individual and Consolidated Financial Statements as of March equity. Enersis and abiding to normal market principles of equity. 31, 2007, its Notes, Income Statement and Relevant Facts At the ninth session held on September 28, 2007, the Board At the twelfth session held on December 12, 2007, the were reviewed. of Directors’ Committee the Committee Chairman made Board of Directors’ Committee agreed to approve the schedule At their fifth session of the period, dated May 29, 2007, reference to the Strategic Alliance executed by Endesa S.A. of ordinary sessions for the period 2008. the Board of Directors’ Committee agreed to adopt an (the Enersis parent company) and Enersis, its main contents In conclusion, the Board of Directors’ Committee of Enersis understanding regarding the ordinary operations that the matter and a proposed modification to the advance notice has been very thorough, during the 2007 period, in its attention Company and/or its affiliates carry out with Corpbanca period. The Board of Directors’ Committee agreed that, on to the issues mentioned in article 5’º bis of the Corporations 32 enersis07 ANNUAL REPORT Law 18,046 and has analyzed and contributed to the better Extraordinary Shareholders Meeting held on March 21, 2006 report issued on January 22, 2007 regarding wire transfer and development of the operations reviewed above. reformed the latter’s by-laws with the purpose of regulating money brokering for the 2006 period in accordance with that BOARD OF DIRECTORS’ COMMITTEE EXPENSES IN 2007 the formation, integration, performance and attributes of the established by the Superintendence of Banks and Financial Auditing Committee. Institutions and the Securities and Insurance Commissions On March 29, 2006, the Company Board of Directors Joint Circular Nª 960. Furthermore, the Auditing Committee designated, as Messrs. Juan Ignacio de la Mata, Rafael agreed to put on record that it had taken formal and express During the year 2007, the Board of Directors’ Committee Español and Hernán Somerville members of the Auditing notice of the Enersis Letter of Internal Control, dated did not make use of the operating expense budget approved Committee of Enersis, all of whom comply and declared November 27, 2006, prepared by the Company’s External by the company’s General Ordinary Shareholders Meeting that they comply with the level of independence expected of Auditors, Deloitte & Touche referred to in Circular Nº 980 of held on April 24, 2007. Said Committee did not need to hire members of the Auditing Committee by the Sarbanes Oxley the Securities and Insurance Commission. On the other hand, the services of professional consultants for the performance Act of the United States of America, the Securities and and in accordance with the Procedural Rules of the Auditing of their duties. Exchange Commission and the New York Stock Exchange, Committee and the Statement on Accounting Standards 03. AUDITING COMMITTEE’S in that their respective provisions are applicable to Enersis. N° 61, the Auditing Committee reviewed and discussed Likewise, the Enersis Auditing Committee, at its session with the external auditors Deloitte & Touche the scope of Nº2/2006 dated April 26, 2006, unanimously agreed to appoint their professional services, their auditing coverage, their Mr. Juan Ignacio de la Mata as Committee Chairman and Mr. independence status, administration criteria and accounting The formation of the Auditing Committee was approved by Domingo Valdés as its Secretary. On July 27, 2007 Mr. Rafael estimates, critical accountancy policies and sensitive areas, the Enersis Board of Directors, at a session held on June 29, Español tendered his resignation to his position as Director, analyzed significant transactions, significant changes 2005. The Auditing Committee is separate from the Board of to his position as member of the Enersis Auditing Committee in accountancy policies, proposed auditing adjustments Directors and from the Board of Directors’ Committee required and to his role as Financial Expert on the latter. On the same processed or unprocessed, written communications such by Corporations Law 18,046. The Auditing Committee is date, the Company Board of Directors appointed Mr. Patricio as representation letters and reports to the administration, a requirement of the United States of America Sarbanes Claro as the new member to the Auditing Committee. In turn, requests and main issues discussed throughout the year, Oxley Act and the complementary regulation issued by the the Board of Directors appointed Mr. Hernán Sommerville as disagreements with administration, fraud considerations, Securities and Exchange Commission (SEC) and the New the new Financial Expert on the Auditing Committee. status on the SOX 404 Auditing progress and convergence York Stock Exchange (NYSE), addressing the fact that Enersis of the Chilean accounting principles with the IFRS. At the is an issuer of American Depositary Receipts (ADRs) that are ENERSIS AUDITING COMMITTEE ACTIVITIES same session, the Committee approved the fees paid by the duly registered with the NYSE, and is also an issuer of United Enersis Group during the 2006 period to the different external States of America registered bonds. Amongst its duties are The Auditing Committee held four sessions during the year auditing firms it hires, these being Deloitte & Touche, Ernst the following: i) to be one of the advocates to the general 2007, at which the specific issues expressed below were and Young and KPMG, as well as the proposed fee estimate shareholders meeting of the external auditors’ appointment; addressed: for the 2007 period. It also reviewed and favorably rated the ii) to be responsible for certifying the performance of the At its first session during the 2007 period, held on January performance of the Company’s external auditors during the Company’s external auditors; iii) prior approval of external 24, 2007, the Auditing Committee reviewed the Individual and 2006 period and proposed the Independent External Auditing auditing services and the diverse services provided by Consolidated Financial Statements as of December 31, 2006, firm Deloitte & Touche for the year 2007. Furthermore, the the external auditors; and iv) establish procedures for the its Notes, and its Income Statement and Relevant Facts, as Committee approved policies for hiring external auditing firms’ reception and management of claims in the accounting, well as the Enersis External Auditors reports. In addition, the ex-employees, reserving their right to establish special terms internal control or auditing sectors. The Enersis General Auditing Committee took formal notice of the Deloitte & Touche for the eventual hiring of certain employees or special category ANNUAL REPORT ADMINISTRATION AND PERSONNEL 33 employees, to be determined case by case. In addition and the reconciliation of the Company Financial Statements to US the contracting of determined auditing services as well as according to the approved procedure regarding the Ethics GAAP, as well as the remaining related information required by those services not related to the audit and to be provided by Channel and Claims Treatment as indicated in the Sarbanes the Securities and Exchange Commission of the United States the external auditors. Finally, the Committee accepted Mr. Oxley Law, the Committee expressed its thoughts on each of America (SEC). In addition and following the approved Rafael Español Navarro’s resignation as a member of the of the claims presented, issued instructions for each one of procedure regarding the Ethics Channel and Claims Treatment Auditing Committee as well as in his role as Financial Expert these and confirmed that it is the responsibility of the Auditing as indicated in the Sarbanes Oxley Law, the Committee to the committee. Committee Chairman to determine the appropriateness of expressed its thoughts on each of the claims presented, In the fourth session, held on October 30, 2007, the calling an extraordinary session of this organism in the event issued instructions on each one of these and confirmed that members of the Auditing Committee were informed that the that the size of the claim so justifies it in the judgment of it is the responsibility of the Auditing Committee Chairman Company Board of Directors, at their session held on July the Chairman. In addition, and in accordance with that to determine the appropriateness of calling an extraordinary 27, 2007 agreed to appoint Mr. Patricio Claro as a member established by Section 202 of the Sarbanes Oxley Law, the session of this organism in the event that the size of the claim of the Auditing Committee of Enersis, effective August 1, Auditing Committee unanimously agreed through all the so justifies it in the judgment of the Chairman. Furthermore 2007, replacing Mr. Rafael Español. Likewise, they were members present, to pre-approve the contracting of external and in compliance with that established by Section 202 of the informed that the Board of Directors, in the aforementioned auditing services as well as those services not related to Sarbanes Oxley Law, the Committee agreed to pre-approve session, appointed Mr. Hernán Somerville as Financial the external audit to be provided by the external auditors the hiring of determined auditing services as well as those Expert to the Auditing Committee. The Auditing Committee and that were presented in that session for prior approval. services not related to the audit and to be provided by the also reviewed the Individual and Consolidated Financial Likewise, the Committee prepared an Auditing Committee external auditors. Statements of Enersis as of September 30, 2007, its Notes, Expense Budget proposal for the Period 2007 and agreed to In its third session, dated July 26, 2007, the Auditing and Income Statement and Relevant Facts. Furthermore submit said Budget proposal to the Board of Directors and Committee reviewed the Individual and Consolidated and in compliance with that established by the Sarbanes the Enersis General Ordinary Shareholders Meeting, so that Financial Statements as of June 30, 2007, its Notes, and Oxley Law, the Committee agreed to pre-approve the hiring the latter can rule definitively on the issue. The Committee Income Statement and Relevant Facts and the report from of determined auditing services as well as those services also approved the text of the report that to be presented to the external auditors. In addition, the Committee reviewed not related to the audit and to be provided by the external the General Ordinary Shareholders Meeting and included in and approved the external auditor’s annual audit plan and the auditors. the Annual Report of Enersis S.A. regarding the activities means with which it will be implemented, thereby complying carried out by the Committee during the 2006 period, as with the respective requirement of the Internal Rules of the well as the expenses it had incurred, including those of their Auditing Committee. Likewise, and following the approved assessors during said period. Lastly, the Committee approved procedure regarding the Ethics Channel and Claims Treatment AUDITING COMMITTEE EXPENSES DURING YEAR 2007 the schedule of ordinary sessions for the 2007 period. as indicated in the Sarbanes Oxley Law, the Committee During the year 2007, the Auditing Committee did not In the second session, dated April 25, 2007, the Auditing expressed its thoughts on each of the claims presented, make use of the operating expense budget approved by the Committee reviewed the Individual and Consolidated Financial issued instructions on each one of these and confirmed that company’s General Ordinary Shareholders Meeting held Statements as of March 31, 2007, its Notes, and Income it is the responsibility of the Auditing Committee Chairman on April 24, 2007. Said Committee did not need to hire the Statement and Relevant Facts. In addition, and in compliance to determine the appropriateness of calling an extraordinary services of professional consultants for the performance of with Section 404 of the Sarbanes Oxley Act, the Committee session of this organism in the event that the size of the claim its duties. approved the Enersis S.A. internal control structures and so justifies it in the judgment of the Chairman. Furthermore procedures required for its financial report. The Committee and in compliance with that established by Section 202 of the also declared having reviewed a draft of Form 20-F, in terms of Sarbanes Oxley Law, the Committee agreed to pre-approve 34 enersis07 ANNUAL REPORT 04. SENIOR EXECUTIVES CHIEF EXECUTIVE OFFICER FISCAL Ignacio Antoñanzas Mining Engineer Universidad Politécnica de Madrid Tax No. 22,298,662-1 Domingo Valdés Lawyer Universidad de Chile Tax No. 6,973,465-0 REGIONAL CHIEF FINANCIAL OFFICER Alfredo Ergas B.A. in Business Universidad de Chile Tax No. 9,574,296-3 CHIEF COMMUNICATIONS OFFICER José Luis Domínguez Civil Engineer Pontificia Universidad Católica de Chile Tax No. 6,372,293-6 REGIONAL CHIEF PLANNING AND CONTROL OFFICER CHIEF AUDITING OFFICER Ramiro Alfonsín B,A, in Business Administration Pontificia Universidad Católica de Argentina Tax No. 22,357,225-1 Antonio Zorrilla Mining Engineer Universidad Politécnica de Madrid Tax No. 22,551,385-6 REGIONAL CHIEF ACCOUNTING OFFICER Fernando Isac Economist Universidad de Zaragoza Tax No. 14,733,649-7 CHIEF HUMAN RESOURCES OFFICER Francisco Silva Public Administrator Universidad de Chile Tax No. 7,006,337-9 05. STRUCTURAL ORGANIZATION (cid:35)(cid:72)(cid:65)(cid:73)(cid:82)(cid:77)(cid:65)(cid:78) (cid:48)(cid:65)(cid:66)(cid:76)(cid:79)(cid:192)(cid:57)(cid:82)(cid:65)(cid:82)(cid:82)(cid:199)(cid:90)(cid:65)(cid:86)(cid:65)(cid:76)(cid:192) (cid:35)(cid:72)(cid:73)(cid:69)(cid:70)(cid:192)(cid:35)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:192)(cid:47)(cid:70)(cid:70)(cid:73)(cid:67)(cid:69)(cid:82) (cid:42)(cid:79)(cid:83)(cid:206)(cid:192)(cid:44)(cid:85)(cid:73)(cid:83)(cid:192)(cid:36)(cid:79)(cid:77)(cid:210)(cid:78)(cid:71)(cid:85)(cid:69)(cid:90)(cid:192) (cid:35)(cid:72)(cid:73)(cid:69)(cid:70)(cid:192)(cid:33)(cid:85)(cid:68)(cid:73)(cid:84)(cid:192)(cid:47)(cid:70)(cid:70)(cid:73)(cid:67)(cid:69)(cid:82) (cid:33)(cid:78)(cid:84)(cid:79)(cid:78)(cid:73)(cid:79)(cid:192)(cid:58)(cid:79)(cid:82)(cid:82)(cid:73)(cid:76)(cid:76)(cid:65)(cid:192) (cid:35)(cid:72)(cid:73)(cid:69)(cid:70)(cid:192)(cid:37)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69)(cid:192)(cid:47)(cid:70)(cid:70)(cid:73)(cid:67)(cid:69)(cid:82) (cid:41)(cid:71)(cid:78)(cid:65)(cid:67)(cid:73)(cid:79)(cid:192)(cid:33)(cid:78)(cid:84)(cid:79)(cid:214)(cid:65)(cid:78)(cid:90)(cid:65)(cid:83)(cid:192) (cid:35)(cid:72)(cid:73)(cid:69)(cid:70)(cid:192)(cid:40)(cid:85)(cid:77)(cid:65)(cid:78)(cid:192)(cid:50)(cid:69)(cid:83)(cid:79)(cid:85)(cid:82)(cid:67)(cid:69)(cid:83)(cid:192)(cid:47)(cid:70)(cid:70)(cid:73)(cid:67)(cid:69)(cid:82) (cid:38)(cid:82)(cid:65)(cid:78)(cid:67)(cid:73)(cid:83)(cid:67)(cid:79)(cid:192)(cid:51)(cid:73)(cid:76)(cid:86)(cid:65)(cid:192) (cid:44)(cid:69)(cid:71)(cid:65)(cid:76)(cid:192)(cid:35)(cid:79)(cid:85)(cid:78)(cid:83)(cid:69)(cid:76) (cid:36)(cid:79)(cid:77)(cid:73)(cid:78)(cid:71)(cid:79)(cid:192)(cid:54)(cid:65)(cid:76)(cid:68)(cid:206)(cid:83)(cid:192) (cid:35)(cid:72)(cid:73)(cid:69)(cid:70)(cid:192)(cid:50)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:192)(cid:33)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:73)(cid:78)(cid:71)(cid:192)(cid:47)(cid:70)(cid:70)(cid:73)(cid:67)(cid:69)(cid:82) (cid:35)(cid:72)(cid:73)(cid:69)(cid:70)(cid:192)(cid:50)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:192)(cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:192)(cid:47)(cid:70)(cid:70)(cid:73)(cid:67)(cid:69)(cid:82) (cid:35)(cid:72)(cid:73)(cid:69)(cid:70)(cid:192)(cid:50)(cid:69)(cid:71)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:192)(cid:48)(cid:76)(cid:65)(cid:78)(cid:78)(cid:73)(cid:78)(cid:71)(cid:192)(cid:33)(cid:78)(cid:68)(cid:192)(cid:35)(cid:79)(cid:78)(cid:84)(cid:82)(cid:79)(cid:76)(cid:192)(cid:47)(cid:70)(cid:70)(cid:73)(cid:67)(cid:69)(cid:82) (cid:38)(cid:69)(cid:82)(cid:78)(cid:65)(cid:78)(cid:68)(cid:79)(cid:192)(cid:41)(cid:83)(cid:65)(cid:67)(cid:192) (cid:33)(cid:76)(cid:70)(cid:82)(cid:69)(cid:68)(cid:79)(cid:192)(cid:37)(cid:82)(cid:71)(cid:65)(cid:83)(cid:192) (cid:50)(cid:65)(cid:77)(cid:73)(cid:82)(cid:79)(cid:192)(cid:33)(cid:76)(cid:70)(cid:79)(cid:78)(cid:83)(cid:210)(cid:78)(cid:192) SENIOR EXECUTIVE AND MANAGEMENT FEES SENIOR EXECUTIVES AND MANAGEMENT INCENTIVE PLANS ANNUAL REPORT ADMINISTRATION AND PERSONNEL 35 SEVERANCE PAID TO SENIOR EXECUTIVES AND MANAGEMENT During the year 2007, Ch$ 192 million was paid out in severance pay. 06. HUMAN RESOURCES COMPOSITION The composition of Enersis personnel, including information related to subsidiaries in the five countries where the Group operates in Latin America as of December 31, 2007, is the following: COMPANY EXECUTIVES PROFESSIONALS AND TECHNICIANS WORKERS AND OTHERS TOTAL Enersis Endesa Brasil (1) Endesa Chile (2) Chilectra (3) Edesur Edelnor Codensa Synapsis (4) CAM (5) Inm. Manso de Velasco (6) 25 52 62 28 36 15 18 13 14 4 116 2,098 1,972 527 1,853 330 910 613 835 13 81 755 196 173 645 199 3 145 380 18 222 2,905 2,230 728 2,534 544 931 771 1,229 35 The total gross remuneration received during the 2007 TOTAL 267 9,267 2,595 12,129 period by the abovementioned senior executives and the Enersis has annual bonus plans for executives based remaining officers of Enersis that do not report directly on objectives and an individual level of contribution to the either to the President or to the Chief Executive Officer, company results. This plan includes a definition of the bonus totaled Ch$ 2,550 million. range according to levels of executive hierarchy. The bonuses ultimately granted to the executives consist of a determined number of gross monthly salaries. (1) Includes: Ampla, Coelce, CIEN, Cachoeira Dourada, Fortaleza, CTM and TESA. (2) Includes: Ingendesa, Pangue, Pehuenche, Celta, San Isidro, Endesa Costanera, El Chocón, Edegel, Emgesa, Enigesa, Endesa Argentina, Fundación Endesa Colombia, EEPSA, CEMSA, Docksud and Túnel el Melón. (3) Includes: Empresa Eléctrica de Colina and Luz Andes. (4) Includes: Synapsis Chile, Synapsis Argentina, Synapsis Colombia, Synapsis Brasil and Synapsis Perú. (5) Includes: CAM Chile, CAM Argentina, CAM Brasil, CAM Colombia and CAM Perú. (6) Includes: Soc. Agrícola de Cameros, Aguas Santiago Poniente, Const. y Proyecto Los Maitenes and Agrícola e Inmobiliaria Pastos Verdes. 36 enersis07 ANNUAL REPORT COMPANY BUSINESSES ANNUAL REPORT COMPANY BUSINESSES 37 01. HISTORICAL BACKGROUND Today, Enersis is one of the biggest private electrical groups in Latin America in terms of consolidated assets and operational incomes, achieved through steady growth and a balance in its electrical businesses, generation On June 19, 1981, the Compañía Chilena de Electricidad S.A. formed and distribution, as well as other related activity businesses. a new corporate structure, which gave rise to a parent company and three The development of the distribution of electric energy business abroad subsidiary companies. One of these was Compañía Chilena Metropolitana has been implemented jointly with its subsidiary Chilectra, a company de Distribucion Electrica S.A. In 1985, as a result of the privatization committed to the distribution of electric energy in the Metropolitan Region policy enforced by the Government of Chile, the shareholding transfer of Santiago, Chile. from the Compañía Chilena Metropolitana de Distribucion Electrica Investments in electric energy generation in the country and abroad S.A. to the private sector was initiated, a process which in fact ended on have been developed through their subsidiary Empresa Nacional de August 10, 1987. Through this process Pension Funds Administrators Electricidad S.A. (Endesa Chile). (AFPs), company workers, institutional investors and thousands of small Moreover, its presence in businesses that complement its main activities shareholders joined the corporation Its organizational structure was based through a majority holding is as follows: on activities or operating functions whose achievements were evaluated Synapsis Soluciones y Servicios IT Ltda. aimed to providing services from a performance viewpoint and its profit was conditioned by a tariff and equipment related to the computer industry and to data processing. scheme as a result of the company’s full-time commitment to the business Inmobiliaria Manso de Velasco Ltda., committed to the real estate of the distribution of electricity business, through comprehensive development of real estate projects In 1987, the company’s Board of Directors proposed forming a division and the administration, rental, purchase and sale of the real property for each one of the different activities of the parent company. Thus four assets belonging to Enersis and its subsidiaries in Chile. subsidiaries were formed, administered as business units each one with Compañía Americana de Multiservicios Ltda. (CAM), its field of action its own objectives, and thereby expanding the company’s activities towards is related to trade and other networking operations for public service other non regulated activities but linked to the main line of business. This companies, preferably in utility measuring service systems and as a division was approved by the General Extraordinary Shareholders Meeting purchaser, importer and exporter as well as trader and supplier of materials of November 25, 1987 that defined its new corporate purpose. Through for the Enersis subsidiaries and third parties. the above, the Compañía Chilena Metropolitana de Distribucion Electrica S.A. became an investment trust. On August 1, 1988, by virtue of a General Extraordinary Shareholders Meeting approval dated April 12, 1988, one of the companies that emerged from the division changed its name to Enersis S.A. At the General 02. EXPANSION AND DEVELOPMENT Extraordinary Shareholders Meeting of April 11, 2002 the corporate Enersis started its international expansion process in 1992, through purpose of the company was modified, introducing telecommunications holdings in different privatization processes in neighboring countries on activities and the investment and administration of companies whose the continent, thereby developing a significant presence in the electric business line was telecommunications and information technology as well sectors in Argentina, Peru, Colombia and Brazil. as the internet intermediary business. 38 enersis07 ANNUAL REPORT In July 1992, Distrilec Inversora S.A., a company in which On May 11, 1999, Enersis acquired an additional 35% of Additionally, refinancing operations to the value of U$S 4,018 Enersis has a holding, acquired Empresa Distribuidora Sur. S.A., Endesa Chile where it already held a 25%. With this acquisition million were carried out through diverse instruments such as new Edesur, a company that distributes electric energy in the city of it obtained practically a 60% holding in the generating company, syndicated loans, bond issues on the local and foreign markets, Buenos Aires, Argentina. Thereafter, in December 1995, Enersis becoming the parent company of that firm and consolidating one prepayment of the so-called “Jumbo II” loan and other minor acquired an additional 39% of the mentioned company, becoming of the first privately owned electrical groups in Latin America. operations. Finally, assets amounting to US$ 757 million were its majority shareholder. In the year 2000 significant operations were carried out sold that included the Canutillar generating plant and the Rio Between July 1994 and December 1995, Eneris, through which can be summarized as follows: a US$ 520 million Maipo electrical distribution plant. its company called Inversiones Distrilima S.A., acquired 60% corporate capital increase; additionally, as part of strategic In 2004, liabilities amounting to US$ 2,100 million were of the shareholding package of the Empresa de Distribucion framework established by the Genesis Plan, US$ 1,400 million refinanced through diverse instruments such as syndicated Electrica de Lima Norte S.A., Edelnor, in Peru. In addition, that was incorporated, resulting from the sale of the subsidiaries loans, bond issues on the local and foreign markets, and other same year, it acquired Edechancay, another Peruvian electricity Transelec, Esval, Aguas Cordillera and real estate divestitures. minor operations. distribution company. Throughout 2001, significant investments were made: US$ 364 In addition, the Endesa Chile subsidiary’s Ralco Plant went During 1996, Enersis ventured for the first time into the Brazilian million to increase the company’s holding in Chilectra’s capital into operation, with a 690 MW capacity contribution. market, acquiring together with other partners a significant portion stock; US$ 150 million in the acquisition of 10% of the capital In 2005, a corporate “holding” company was formed in Brazil, a of the shares of the previously called Companhia de Eletricidade stock of Edesur, in Argentina which was in the hands of company subsidiary of Enersis S.A., under the name Endesa Brasil S.A. do Río de Janeiro S.A., Cerj that distributes electric energy to employees; US$ 132 million to increase holding in the Brazilian The formation of this new company was based on all the assets the city of Rio de Janeiro and Niteroi, Brazil, and whose current company Ampla; and US$ 23 million for a 15% increase in the the Enersis Group and Endesa Internacional hold in Brazil: CIEN, name is Ampla Energia e Serviços S.A. Enersis holding in Río Maipo. Fortaleza, Cachoeira Dourada, Ampla, Investluz and Coelce. In 1997, Enersis successfully participated, through a During the year 2002, construction continued in Chile on the Furthermore, Endesa Chile started developing the feasibility consortium, in the capitalization process and subsequent takeover Ralco hydro-electric plant, located in the 8th Region and in Brazil pre-project for the implementation of the Baker and Pascua river of Codensa S.A. ESP, Codensa, a company that developed the on the Fortaleza thermo-electrical Plant in the state of Ceara. projects that represent more than 2,750 MW of new installed electricity distribution business in the city of Bogotá and in the Furthermore, commercial operation of the second phase of the capacity in Chile. In March, Endesa ECO S.A. was formed with municipality of Cundinamarca, Colombia. electrical interconnection between Argentina and Brazil, CIEN, the corporate purpose of developing renewable energy projects At the beginning of 1998, Enersis once again ventured into was initiated completing a transmission capacity of 2,100 MW in Latin America. In addition, in August construction on the San the Brazilian market; this time through a consortium that acquired between these countries. Isidro II combined cycle thermal plant (377 MW) began and in control of Companhia Energetica de Ceara S.A., Coelce, a Enersis also strengthened the financial position of Ampla October on the Palmucho Hydraulic Plant (32 MW). company that distributes electricity in Northeastern Brazil, in in Brazil through the capital conversion of US$ 100 million in In February 2006, Endesa Chile purchased, for approximately the Estado de Ceara. convertible bonds and through a capital increase of US$ 100 U$S 17 million, the TermoCartagena plant (142 MW) in Colombia During 1999, ENDESA, S.A., the Spanish corporation, became million, and it invested US$ 1.6 million to increase its holding by a that operates on fuel oil or gas and which could possibly be the majority shareholder of Enersis. Through a Takeover Bid 1.73%, in the corporate capital of Distrilima en Peru, the company converted to coal. (OAA) in which it offered Ch$ 320 per share, the multinational through which is controled the distributor Edelnor. In March, Enersis reported the Elesur and Chilectra merger corporation acquired 32% of Enersis, which, added to the 32% During 2003, Enersis implemented capital increase that to the Superintendence of Banks and Financial Institutions; in it had purchased in August 1997, placed its holding at 64%. The enabled it to expand the company’s equity by more than US$ this fusion the latter was absorbed by the former. The full force operation, completed on April 7, 1999, involved an investment 2,104 million; with this operation the ENDESA, S.A. holding in of this merger was felt as from April 1, 2006. of US$ 1,450 million. Enersis dropped to 60.62%. ANNUAL REPORT COMPANY BUSINESSES 39 In May, Endesa Chile started research on the environmental A s f r o m O c t o b e r 10 , 2 0 0 7, t h e f i n a l c o n t r o l l i n g processes as a consequence of permanent research base line of the Aysén Hydroelectric Project in the country’s shareholders of Enersis S.A. – through Endesa, S.A. and implementation. 11th Region, which will continue through 2008, and later in August Endesa Internacional S.A. – became ENEL S.p.A and With reference to the second pillar, increase investment value formed the Centrales Hidroelectricas de Aysén S.A. company. In ACCIONA, S.A. for its shareholders, an increase of more than 291% in the value June, the Edegel and Etevensa merger took place, subsidiary During November, the commercial operation of the new of the company’s market capitalization over the past five years of Endesa Internacional in Peru, and during September Endesa Palmucho hydro-electric plant located at the foot of the Central must be mentioned. This has emerged from the best and highly Chile together with ENAP, Metrogras and GNL Chile signed the Ralco dam in the Alto Bío Bío area, 8th Region, was started up; informed market perception of Enersis’ business diversification. agreement that defines the structure of the Natural Liquid Gas this plant will contribute 32MW of installed capacity to the Central In fact, our group took fitting advantage of the growth experienced Project (GNL) which is part of the strategy in light of the lack of Interconnected System (SIC). by the economies of the five countries where it operates, which the gas supply from Argentina. On December 6, Canela was inaugurated; the first Wind Farm impacts favorably on the energy demand, an essential raw Another relevant operation in 2006 was the incorporation of a on the Central Interconnected System, Canela is located in the material for development sustainability. new shareholder in Endesa Brasil, this being the IFC (International municipality of Canela in the Coquimbo Region and contributes In terms of the third pillar, availability of a better and Finance Corporation) that contributed US$ 50 million to the 18 MW to the Central Interconnected System (SIC). healthier financial structure, it should be mentioned that in July, Brazilian holding. the International Ratings Agency Standard & Poor’s raised the In October 2006, the bidding process for the energy GROWTH, RESEARCH & DEVELOPMENT international risk rating of Enersis and Endesa Chile to BBB supply covering the period 2010-2022 was closed. Chilectra (stable) where all agencies classified both companies with an contracted 49,720 GWh, sufficient energy to fulfill its contracts up Enersis’ principal objective is to maximize the economic investment grade rating. On these same lines, the national rating to the year 2009. Endesa Chile and subsidiaries were awarded value of its net worth through steady growth based on rigorously firms Feller Rate and Fitch raised their local rating to AA- (stable), approximately 6,400 GWh/year, representing 100% of its own evaluated and administered electrical business. The fulfillment also taking into account the financial improvements. bids and a 59% of total bids presented, at a price in the area of of this objective is founded on an investment strategy focused Finally, regarding the fourth pillar, investment opportunities, US$ 65 per MWh. on increasing the economic value of subsidiary and affiliate Enersis is permanently evaluating the best options for growth On April 23, 2007 Endesa Chile connected the first phase of companies as well as the acquisition of new ones. in both lines of business in current operating countries. In this the Extension Project of the San Isidro Plant, second unit to the In this context, Enersis has based its strategy on four fundament context, the company rigorously analyzes different alternatives, Economic Load Dispatch Center of the Central Interconnected pillars, namely: bearing in mind that each can contribute to the three previously System (CDEC-SIC); this will inject a maximum capacity of 248 MW net. • • Increase business profitability mentioned pillars. Increase investment value for its shareholders A key factor on this subject takes into account the placement During the year 2007, Chilectra initiated a new auction process • Strengthen its balance sheet and financial position. of investments that exact the significant experience, the for the supply of regulated customers, where a total 5,700 GWh • Take advantage of the best investment opportunities management abilities and the operating capabilities of Enersis and per year were awarded as from the year 2011, at an average price its subsidiaries. This requirement calls for making investments of US$ 73. In compliance with that established by article Nº 135 Regarding the first developmental pillar, our company, in companies where there is definitive involvement in their of DFL Nº 4, in March 2008 this process will continue with a call during 2007, continued improving the pay-back of its principal management and operation, as well as the faculty to approve to tender for 1,800 GWh per year, also as from the year 2011. subsidiaries, both in the business of generating as well as and reject investment projects. On September 1 the merger between the Colombian distributing electric energy. Thus, for example, returns on generating companies Emgesa and Betania took place. operating incomes in both lines of business, reflect significant inclines resulting from constant improvements to the productive 40 enersis07 ANNUAL REPORT DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY ANNUAL REPORT 41 01. ELECTRICITY GENERATION 03. ELECTRICITY DISTRIBUTION The business of electrical generation is carried out mainly by our Our electric energy distribution business is carried out by Chilectra subsidiary Endesa Chile. In this line of business, the Group has in Chile, Edesur in Argentina, Ampla and Coece (property of Endesa operating subsidiaries in Chile, Argentina, Brazil, Colombia and Brasil) in Brazil, Codensa in Colombia and Edelnor in Peru. For the Peru. year 2007, our main subsidiaries and distribution related companies In total, as of December 2007, the installed capacity reached sold 61,610 GWh. 13,707 MW and our consolidated electrical production amounted to As of today, Chilectra, Edesur, Edelnor, Ampla, Coece and Codensa 54,434 GWh, and energy sales reached 62,574 GWh. supply the principal cities in Latin America delivering electrical service In the electricity industry, the business segmentation between to 12 million customers. These companies face an increasing hydro- electric power and thermal generation is natural, as the variable electricity demand in the area of 6% per year, which drives constant costs of the generation of electricity are different for each production investment, both in expansion as well as in the maintenance of type. Thermal generation requires purchasing of fossil fuels while facilities. hydro-electric plants use water from rivers and dams. 67% of our consolidated generation capacity comes from hydro- electric sources and 33% from thermal sources. 02. ELECTRICITY TRANSMISSION For the Enersis Group, the business of transmitting electric energy is implemented through the interconnection line between Argentina and Brazil, CIEN, a subsidiary of Endesa Brasil. 42 enersis07 ANNUAL REPORT Argentina 01. INDUSTRY STRUCTURE The energy price consists of a value called System Marginal Price or Market Price and it represents the economic cost of generating the next KWh. All the generating companies in The Argentine Electricity Law (Nº 24,065, January 1992) the system charge their energy at a marginal price affected divides the electric sector in three parts. The generation by a factor the takes into account payment of losses and segment is organized on a competitive base of independent the transport service. Additionally, they receive payment for generating companies that sell their production on the capacity availability. Wholesale Electricity Market (Mercado Electrico Mayorista), All generating companies that belong to the National MEM or through private contracts with other members of MEM Interconnected System (SIN) common pool operate on the future markets. MEM. The distributing companies, the energy traders and The transmission of electricity in Argentina is regulated. the large scale users who have undersigned supply contracts These companies must operate, maintain and provide third with the generating companies pay a contracted price. Large parties with access to their transmission systems and they are scale users that buy directly from the generating companies, authorized to charge a toll, but they are forbidden to generate pay a toll to the distributing companies for the use of their or distribute electricity. distribution network. The distribution covers the transfer of electricity from the point The average spot price is the price paid by distributors of transmission supply to the users. The distribution companies for the electricity obtained from the common pool and it is operate as geographical monopolies, delivering the service to a fixed price that CAMMESA updates every six months and almost all users within a specific region. Consequently, the adjusts every three months, and is approved by the Ministry distributors’ tariffs respond to regulations and the companies of Energy according to supply, demand, available capacity are subject to service specifications. Although the distributing and other factors. The spot rate is the price paid to the companies can purchase -the electricity that they require in generating companies, or paid by the energy traders that sell order to meet their demand- at the MEM at seasonal prices or generating capacity, for the energy shipped under CAMMESA’s through contracts with generating companies, they all prefer to administration and for the capacity that it needs to maintain buy electricity at the MEM as they are only allowed to transfer appropriate reserves. This hourly spot price paid reflects the those seasonal prices that reflect the average spot price. generating marginal cost. The Argentine dispatch system, as well as the Chilean, is As of 2007, the Argentine National Interconnected System designed to ensure that the less expensive electricity reaches or SIN has an installed capacity of 24,406 MW, mostly thermal. the consumer. The generating companies sell their electricity The Systems annual generation reached 108,467 GWh and to the distribution companies, to the energy traders and to the sales totaled 102,950 GWh. large scale users on the competitive MEM by means of freely negotiated supply contracts or on the spot market at prices established by the Compañía Administradora del Mercado Mayorista Electrico S.A., or CAMMESA which is responsible for the MEM operation. DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY ANNUAL REPORT 43 Generation Plant Costanera Type Installed Capacity Thermal 2,324 MW Plant Arroyito Type Installed Capacity Hydro 120 MW Plant El Chocón Type Installed Capacity Hydro 1,200 MW CÓRDOBA BUENOS AIRES Distribution Edesur Energy Sales Clients Energy Losses 15,833 GWh 2,227,742 10.7% MENDOZA NEUQUÉN 44 enersis07 ANNUAL REPORT 02. ELECTRICITY GENERATION Enersis participates in the generation of electric energy in Argentina through Endesa Costanera and El Chocon of which it has, directly or indirectly a 41.8% and 39.2% ownership share holding. These companies operate five plants, two of which are hydro-electric and three are thermo-electric with a total installed capacity of 3,644 MW and represented, as of year-end 2007, a 15% of the installed capacity of electricity generation on the Argentine Interconnected System. The Group’s total electricity generation in Argentina amounted to 12,117 GWh as of 2007, an 11% of the total generated in that country. Of this total, the hydro-electric power represented a 31%, a lower percentage than in 2006 due to the fact that this was a relatively dry year. Physical energy sales amounted to 12,406 GWh in 2007. Enersis and Endesa Chile also participated in the transmission and trading of electricity in Argentina by means of their related companies, Compañía de Transmision del ENDESA COSTANERA Mercosur S.A. (“CTM”), owner of the Argentine side of the CHOCÓN Is located in the provinces of Neuquén and Rio Negro. Its installed capacity is 1,320 MW, it is a hydraulic, high head storage plant and for generation it uses water from the Limay and Collón Cura rivers. Its capacity represented close to 5% of the total installed capacity on the MEM as of December 2007. This year and due to hydrological conditions, the company’s net generation and sales dropped, 3,696 GWh and 3,956 GWh respectively. 03. ELECTRICITY DISTRIBUTION Enersis operates in the distribution of electric energy in Argentina through its subsidiary Edesur, in which it holds, directly or indirectly, a 65.4% share. Edesur has an exclusive concession for the distribution of electric energy within the concession area for a period of 95 years starting August 31, 1992. This concession transmission line interconnecting with Brazil, CIEN and Is located in the city of Buenos Aires. Its installed consists of an initial 15 year period and eight additional 10 CEMSA, a trading company that has signed contracts with capacity is 2,324 MW, it is a steam-gas thermal unit, and year periods. It is important to point out that as of February generating companies in Argentina for exporting electricity it uses natural gas, fuel oil and diesel oil as generating fuel. 5, 2007, the National Electricity Regulating Entity (Ente from that point to Brazil and Uruguay. Its capacity accounts for close to 10% of the total installed Nacional Regulador de Electricidad (ENRE) published In Argentina, other generating companies connected to capacity on the MEM as of December 2007. in the Official Bulletin its Resolution ENRE Nº 566/2007 SIN are: Piedra del Aguila, Puerto, San Nicolás, Paraná, Endesa Costanera operates a 1,138 MW steam plant announcing that the initial period would be extended by Alicura, Genelba, Pichi Picún Leufú and TermoAndes. that can run either on natural gas or fuel oil, the largest of an additional five years, effective the termination of the its kind in Argentina, as well as two combined cycle plants Integral Tariff Renegotiation (RTI) (Renegociacion Tarifaria of 327 MW and 859 MW. Integral) process. Net generation amounted to 8,421 GWh and total sales The concession contract established Edesur’s obligation amounted to 8,450 GWh, both declining in terms of the of supplying electricity upon request of the proprietors or previous year. inhabitants of properties within the concession area, of DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY ANNUAL REPORT 45 complying with certain quality standards related to the (Distribution Added Value) applied on all tariff categories distributor cost variation every six months, the ENRE electricity supplied, of complying with certain operational with the exception of Tariff 1 Residential. stipulated a 9.962% increase over own distribution costs demands in respect of maintenance of the distribution As part of the renegotiation process of the concession for the period May 2005-April 2006, to be included in assets and invoicing customers based on effective contract foreseen by Law Nº 25,561 and its complementary the February 2007 tariff, and a 9.75% for the period May measurement. ruling, on August 29, 2005 Edesur signed the Renegotiation 2006-April 2007 which has not yet been transferred to the In Argentina, other electric system distributors are: Agreement Memorandum of the above mentioned tariff, but rather it is compensated with the PUREE surplus Empresa Jujeña de Energia (EJESA), Empresa de Concession Contract, which was ratified by Presidential (Rational Use of Electric energy Program) by Resolution Distribucion de Energía de Tucumán (EDET), Empresa Decree Nº 1,959 in January 2007. Nº 1838/07 of the Ministry of Energy. Although as yet Distr ibuidora de Energía de Santiago del Estero Likewise, the ENRE, through its Resolution Nº 50/2007 of without a reply, there has also been a request made to the (EDESE), Empresa Distribuidora y Comercializadora February 2007, enforced the rates that transpired from the ENRE to apply a 7.76% increase on own distribution costs Norte (EDENOR), Empresa de Distribución de la Plata Agreement Memorandum as from February 1, 2007, and equivalent to the output of the MMC formula for the period (EDELAP). EDESUR established that the retroactive collection, corresponding May-October 2007. to the November 2005 – January 2007 period, be executed While this has meant significant progress, in this period in 55 monthly and successive installments. Edesur has still not been able to recover from its economic- It should be pointed out that, in accordance with the financial crisis caused by the devaluation and dollar deposit Edesur’s main objective is the distribution and marketing Cost Monitoring Mechanism (Mecanismo de Monitoreo de conversion into pesos of January 2002, thus, its governance of electric energy in the southern area of the city of Buenos Costos (MMC) established by the Agreement Memorandum was focused on trying to minimize the effects emerging Aires, covering two thirds of the Federal Capital and that activates the tariff re-determination process due to from the situation. twelve municipalities of the Province of Buenos Aires. Its concession area covers 3,309 km2. It delivered electric energy to 2,227,742 customers, a 1.4% more than the previous year. Of this total, 86.9% represents residential customers, 11.6% are commercial, 1.1% is industrial and 0.4% represents other clients. During year 2007, energy sales reached 15,833 GWh to end customers, which represents an increase of 6.7% in respect of 2006. This was distributed in 40.4% to the residential sector, 26.3% to the commercial sector, 10.4% to the industrial sector and 22.8% to others. The energy loss index reached 10.7% during 2007. In regards to the tariff situation, with the publication in the Official Bulletin of the Argentine Republic of the National Electricity Regulating Entity’s (ENRE) Resolution 50/2007, the first rate increase for Edesur since the 2002 devaluation came into effect. This was a 28% increase in remuneration 46 enersis07 ANNUAL REPORT Brazil 01. INDUSTRY STRUCTURE expansion within EPE (Empresa Pesquisa Energetica), a state entity in charge of planning generation and transmission activities that defines two contracting field: The electric industry in Brazil is organized under a large the free contracting setting and the regulated setting. interconnected electric system that is called National As part of the rulings on the new model, the contracting Interconnected System or the Brazilian SIN, that embraces of energy by distributors to supply their regulated customers the electrical companies in the Southern, Southeastern, must be carried out through a centralized auction Western, Central, Northeastern zones and parts of the process regions to the North of Brazil, as well as other small and The other significant change imposed on the electrical isolated systems. sector is the separation of what is called “existing energy” The SIN has an installed capacity of 100,352 MW in 2007, and “energy coming from new projects”. Operating plants mostly hydraulic. The system’s annual generation reached prior to the year 2000 are considered “existing energy” 437,560 GWh and sales totaled 367,550 GWh. plants, while those developed after the year 2000 are By virtue of Brazilian law, the generation, transmission, “energy coming from new projects” plants. distribution and supply activities are all separate. The first auction for existing generators took place in Under the current regulations, the main regulatory December 2004, and the distributors contracted energy entity of the electric industry in Brazil is the União that for a period of five to eight years and the first auction for acts through the Ministry of Mines and Energy that has future generators took place in December 2005. After this, exclusive authority over the electrical sector by way of its various auctions took place for both new and future energy; concession and regulatory powers. The regulatory policies particularly in 2007 there were two bids for new energy for the sector are implemented by the National Electric totaling 3,600 MW. energy Agency (Agencia Nacional de Energia Electrica) Moreover, the new model establishes the separation of or the ANEEL, which was established in compliance with sector activities that prevents the distribution companies Law Nº 9,427/96. from participating in generation, transmission activities as Over recent years the Brazilian electric industry has been well as in other companies. subject to changes and transformations. In March 2004, Finally, the concessions law establishes three types of federal laws Nº 10,847 and 10,848 established a new model modifications in relation to the supply of energy to end for the electrical sector in Brazil. This new model expects customers, namely: the annual tariff setting, the ordinary to offer lower rates to the customer and guarantee system tariff correction and the extraordinary tariff correction. MANAUS BELÉN BRASILIA GOIANIA RÍO DE JANEIRO SAO PAULO DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY ANNUAL REPORT 47 Generation Plant Cachoeira Dourada Type Installed Capacity Hydro 665 MW Plant Fortaleza Type Installed Capacity Thermal 322 MW Distribution Coelce Energy Sales Clients Energy Losses Ampla Energy Sales Clients Energy Losses 7,227 GWh 2,688,746 12.5% 8,985 GWh 2,378.,590 21.4% Transmission CIEN Installed Capacity Energy Sales 2,100 MW 6,232 GWh 48 enersis07 ANNUAL REPORT ENDESA BRASIL CACHOEIRA DOURADA Net generation was 66 GWh, and its sales reached 2,705 GWh, a similar figure to the previous year. Enersis operates in Brazil through Endesa Brasil. In Is located in the State of Goias, 240 km south of Goiania. October 2005, Enersis started consolidating Endesa Brasil Its installed capacity of 665 MW is run-of-the river hydro- CIEN through a direct and indirect holding of 53.6%. electric energy and it uses waters from the Paranaiba River The objective of re-organizing all assets in Brazil was to generate its energy. Its installed capacity represents It facilitates the importation and exportation of electricity to simplify the organizational structure, allowing thereby approximately 1% of the total SIN capacity. between Argentina and Brazil, in either direction. To this greater efficiency, flow transparency and stability of local Net generation totaled 3,888 GWh, year and sales totaled effect, it has two transmission lines with a total installed cash flows when administered centrally, optimizing financing 4,643 GWh, an increase of 11.2% over last year. capacity of 2,100 MW that cover a distance of approximately costs; additionally, to improve third party financing and 500 km. from Rincon Santa María in Argentina to Ita in the finally to strengthen the Group’s positioning in selecting CENTRAL FORTALEzA State of Santa Catarina in Brazil. new investment opportunities. D u r i n g 2 0 0 7, t h e C I E N e n e r g y s a l e s t o t a l e d Is located in the municipality of Caucaia, 50 km from the 6,232 GWh. capital of the State of Caera. It is a 322 MW combined cycle thermal plant that uses natural gas for generation. Its installed capacity represents less than 1% of the total SIN capacity. 02. ELECTRICITY GENERATION Enersis operates in the generation of electric energy in Brazil through Endesa Brasil and its subsidiaries Cachoeira Dourada and Endesa Fortaleza, in which it has, directly or indirectly, a 53.4% and 53.6% holding, respectively. These two plants, one hydro-electric and the other thermal, have a total installed capacity of 987 MW, accounting approximately for 1% of the SIN installed capacity. The Group’s total electricity generation in Brazil during the year reached 3,954 GWh, 1% of the total generated in that country and physical energy sales totaled 7,348 GWh. In Brazil, other generating units connected to the SIN are: CHESF, Furnas, Cemig, Electronorte, Cesp, Copel, Eletrobras, Eletropaulo. Enersis also participates in the transmission and trading of electricity by way of the interconnection line between Argentina and Brazil through CIEN. 03. ELECTRICITY DISTRIBUTION Enersis operates in energy distribution in Brazil by way of Endesa Brasil and its subsidiaries Ampla and Coelce. Enersis, directly and indirectly, has a 69.9% and a 34.9% holding in Ampla and Coelce, respectively. In Brazil, other electric system operators are: CPFL, Brasiliana de Energia, AES Elpa, Cemig, Light, Coelba and Copel. AMPLA Is an electric energy distribution company that covers 73% of the territory of the State of Rio de Janeiro, extending over an area of 32,054 km2. The area’s population totals approximately eight million inhabitants in 66 municipalities. The main municipalities are; Niteroi, São Gonçalo, Petropolis, Campos and the coastal area of Los Lagos. It delivers electric energy service to 2,378,590 customers, a 2.7% more than the previous year. Of this total, 89.7% represents residential customers, 7% are commercial, 0.2% DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY ANNUAL REPORT 49 With respect to the tariff situation, on March 13, 2007 the tariff readjustment for Amplia was established, resulting in an average decline of total customers of 4.2%. COELCE Is the electric energy distribution company of the State of Ceara, in the Northeast of Brazil, and it covers a concession zone of 148,825 km2. The company serves a population of more than seven million inhabitants The number of Coelce customers reached 2,688,746, of which total a 75.8% represents the residential segment, a 5.5% the commercial sector, 0.2% to the industrial sector and 18.6% accounts for other sectors; in respect to last year the number of customers increased by 5.7%. The energy sales totaled 7,227 GWh in December 2007, representing a 6.8% increase during the same period in 2006. Of total sales, 32.1% was sold to residential customers, 18.4% to commercial customers, 26.6% to industrial customers, and 22.5% to other clients. Total energy losses diminished significantly; thus, the index declined from 13% to 12.5% in 2007. is industrial and 3.1% are other clients. In terms of energy losses, these declined 0.5%. The In terms of the tariff situation, in 2007 Ceolce went During 2007, the company sold 8,985 GWh to its end index closed at 21.4% in December 2007, a similar figure through its second tariff revision cycle and the revision customers, which represent an increase of 3.7% in respect to the 21.9% reached in December 2006. resulted in a temporary average drop of 6.35% on tariffs. of 2006. Of the total energy sold, 44.7% corresponds to During this year, 89,176 customers connected to the residential customers, a 12.1% to industrial customers, Ampla network totaling, to date, 447,468 customers. This 21.7% to commercial customers and a 21.5% to other is in line with the company’s defined strategy to annually clients. reduce energy losses. 50 enersis07 ANNUAL REPORT Chile 01. INDUSTRY STRUCTURE 42,040 GWh and annual sales reached 39,982 GWh representing an increase of 5%. The SING system covers some 700 km in the North of the Chile’s electric sector is regulated by 3 government entities country, from Arica to Coloso. This system, with an installed that have the responsibility of applying and enforcing the Law: capacity of 3,602 MW as of 2007, is predominantly thermo- The National Energy Commission (Comision Nacional de Energia electrical. Net generation reached 13,951 GWh and energy sales CNE) that has the authority to propose tariff regulations (node amounted to 12,674 GWh, an increase of 5,4 % with respect to prices), as well as prepare indicative plans for the construction the previous year. of new generation units; the Electricity and Fuel Commission One of the basic principles of the current legislation is that the (Superintendencia de Electricidad y Combustibles - SEC), rates should represent the real costs of electricity generation, that certifies and monitors the compliance of laws, regulations transmission and distribution in relation to an efficient operation, and technical standards for the generation, transmission and so as to deliver adequate signals both to companies and to distribution of electricity, liquid fuels and gas; and lastly, the consumers, aimed at obtaining optimum development of the Ministry of Economy (Ministerio de Economia) that reviews and electric systems. approves the rates proposed by the CNE and regulates the Amongst these broad criteria is the freedom of prices within granting of concessions to electricity generating, transmitting competitive segments. Thus, the supply to end users whose and distributing companies, subject to a prior SEC report. connected capacity is less or equal to 2,000 KW are considered In light of Chile’s Electric Law, the companies involved in the regulated customers, and those whose connected capacity generation of electricity must coordinate their operations by way exceeds 2,000 kW are understood as freed customers. of the Economic Load Dispatch Centre (Centro de Despacho Prices at a generation-transportation level are called “Node Economico de Carga (CDEC), with an aim to operating the Prices” and they are defined for all the generation-transportation system at a minimum cost, preserving system safety. For this, substations from where the supply is emitted and they include the the CDEC plans and executes the system’s operation, including energy price and the peak power price. In turn, the prices at a the marginal cost calculation, rate at which the transfers of distribution level are fixed every four years and are based on the energy between generators is valued. sum of the node price, established at the connection point with From a physical point of view, the Chilean electric sector is the distribution facilities plus an added value by way of distribution divided into 4 systems: SIC (Central Interconnected System), and a one-time fee or toll by way of usage of the core transmission SING (Norte Grande Interconnected System) and two lesser system. isolated electricity systems, the Aysén system and the As a part of the new electricity regulation, the contracting of Magallanes system. energy by distributors for the supply of their regulated customers The SIC system, the major electricity system, extends along must be carried out through an open tender. Consequently, the 2,400 km joining Taltal in the North with Quellon on the island of country has faced two energy tenders over the last two years. Chiloé in the South. With an installed capacity of 9,392 MW in During 2008 the call to tenders for energy not covered by the 2007, the system is primarily hydraulic. Net generation totaled second process will continue. DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY ANNUAL REPORT 51 Distribution Chilectra Energy Sales Clients Energy Losses 12,923 GWh 1,483,240 5.9% Generation Plant Tarapacá Type Thermal Installed Capacity 182 MW Plant Atacama Type Thermal Installed Capacity 781 MW Plant Tal - Tal Thermal Type Installed Capacity 245 MW Plant Diego de Almagro Type Installed Capacity 47 MW Thermal Plant Huasco Type Installed Capacity 80 MW Thermal Plant Los Molles Type Hydro Installed Capacity 18 MW Plant San Isidro Thermal Type Installed Capacity 627 MW Plant Rapel Type Installed Capacity 377 MW Hydro Plant Sauzal Type Hydro Installed Capacity 77 MW Plant Sauzalito Type Hydro Installed Capacity 12 MW Plant Cipreses Type Installed Capacity 106 MW Hydro Plant Isla Hydro Type Installed Capacity 68 MW ANTOFAGASTA Generation Plant Canela Type Installed Capacity 18 MW Wind Farm SANTIAGO TALCA CONCEPCIÓN Plant Curillinque Type Hydro Installed Capacity 89 MW Plant Loma Alta Type Hydro Installed Capacity 40 MW Plant Pehuenche Type Installed Capacity 570 MW Hydro Plant Bocamina Type Thermal Installed Capacity 128 MW Plant Antuco Type Installed Capacity 320 MW Hydro Plant Abanico Type Installed Capacity 136 MW Hydro Plant El Toro Type Installed Capacity 450 MW Hydro Plant Ralco Type Installed Capacity 690 MW Hydro Plant Palmucho Type Hydro Installed Capacity 32 MW Plant Pangue Type Installed Capacity 467 MW Hydro 52 enersis07 ANNUAL REPORT 02. ELECTRICITY GENERATION Enersis generates electric energy in Chile by way of Endesa Chile and its subsidiaries. It is the largest electric company in the country in terms of installed capacity, in which it has, directly, a 60% shareholding. In addition, this subsidiary is also present in the business of engineering services. Endesa Chile and its subsidiaries Pehuenche, Pangue, San Isidro, Celta and Canela own and operate a total of 25 generating plants in Chile, fifteen of which are hydro- electric, nine are thermal plants run on coal, oil or natural gas and one wind farm, amounting to a total installed capacity of approximately 4,779 MW, representing 37% of the total capacity in Chile. PEHUENCHE SAN ISIDRO The total electricity generation of the Group in Chile reached 18,773 GWh in 2007, 73% of this being hydro- Is located in the 7th Region, 60 km East of Talca. Its The San Isidro plant is located in the 5th Region, 8 km electric, accounting for 34% of total country generation. installed capacity of 699 MW is hydraulic, high head from Quillota. Its 379 MW installed capacity is thermal, a The physical sales for 2007 amounted to 19,212 GWh. storage, and it uses waters from the Melado dam as well combined cycle, and it uses natural gas and fuel oil for its Endesa Chile supplies electricity to the major regulated as the waters discharged from the Loma Alta plant for its generation. distributors, the large non regulated industrial companies generation. San Isidro’s net generation was 1,956 GWh and its sales (primarily in the mining, cellulose and steel sectors) and Pehuenche’s net generation was 3,437 GWh and sales amounted to 2,872 GWh: these figures are higher than to the spot market. amounted to 3,427 GWh. those of last year. The most significant supply agreements that Endesa Chile has with regulated customers correspond to contracts with PANGUE Chilectra and CGE, the two biggest distributors in Chile, and CELTA with non regulated customers like Codelco and Inforsa. Is located in the 8th Region, 100 km East of Los Angeles. Is located in the 1st Region, 65 km South of Iquique. Its In Chile, other generation plants connected to the Its 467 MW of installed capacity is hydraulic, high head 182 MW installed capacity is thermal, vapor-gas, and it electricity system are: AES Gener, Colbún, Electroandina, storage and for its generation of electricity it uses the waters uses coal and oil for its generation. Edelnor, Norgener. from the Bio-Bio River by way of an artificial dam. Celta’s net generation was 933 GWh, and its sales Pangue’s net generation was amounted to 1,351 GWh, amounted to 1,068 GWh, these figures are higher than and sales amounted to 1,520 GWh. those of last year. DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY ANNUAL REPORT 53 CANELA CHILECTRA In 2007, Chilectra continued in its efforts to control energy losses, registering in December a level of 5.9%. Located in IV Region, 80 km north city of Los Vilos. Its Chilectra is the largest electric energy distributing Notwithstanding the above, this continues to be one of the 18 MW installed capacity is wind farm, ans it is the first wind company in Chile, in terms of energy sales. It covers 33 lowest in Latin America. The increase in the level of energy farm of SIC. Operation of wind farm Canela will displace every year between 10,660 and 23,400 CO2 tons. municipalities in the Metropolitan Region and its concession losses is explained primarily by the growth of the last 3 zone extends over 2,118 km2, including the areas covered months of 2007, due primarily to the increase in the volume 03. ELECTRICITY DISTRIBUTION by Empresa Electrica Colina Ltda. and Luz Andes Ltda. of energy theft, as a consequence of low temperatures It delivers electric energy ser vice to 1,483,240 -when compared to those of 2006- and to the increase in customers, a 3.2% more than last year. Of this total, 89.8% distribution rates. corresponds to residential customers, 7.9% are commercial, In terms of the tariff situation, at present there are 3 0.8% industrial and 1.5% other clients. relevant tariff processes under development: Enersis generates electricity in Chile through its During 2007, the company sold 12,923 GWh to its end The first one is related to the determination of the sub- subsidiary Chilectra, of which it is the 99% property customers, which represents an increase of 4.4% over transmission system’s annual rate, which will be completed owner. 2006. This distributed 26.9% to the residential sector, with the publication of a decree to be issued by the Ministry In view of tariff regulations in Chile that govern electricity 25.7% to the commercial sector, 25.6% to the industrial of Economy, Development and Reconstruction. distribution activities, the service area of Chilectra is sector and 21.8% to others. The second one corresponds to the process for defined primarily as a high density area and it includes Chilectra bought 12,668 GWh of energy during 2007 from determining Core Transmission System Rates. This all the residential, commercial, industrial and state various generating plants around the country, amongst process determines the so-called once-only fee in terms customers as well as those who pay tolls, in addition to which were: AES Gener, 32,0%; Endesa Chile, 31,7%; of core transmission costs that will be paid retroactively by the Compañía Electrica del Río Maipo S.A., amongst Colbún, 30,9% and others, 5,4%. customers as from March 13, 2004. others. The Metropolitan Region of Santiago constitutes the area of greatest population density and it has the highest concentration of industries, industrial parks and commercial facilities in Chile. In Chile, other electric distributors are: Empresa Eléctrica de Arica S.A., Empresa Eléctrica de Aysén S.A., Empresa Eléctrica EMEL S.A, Compañía Eléctrica del Río Maipo S.A., Sociedad Austral de Electricidad S.A., Empresa Eléctrica de la Frontera S.A., Compañía General de Electricidad S.A. and Luz Andes Limitada. The third one refers to the process for setting the distribution rates that will come into force as from November 1, 2008. The first step in this process is the setting of the VNR of the distributing facilities of the concession companies and it corresponds to the cost of renewing all the work sites, facilities and physical assets that are used in providing the distribution service. Furthermore, during 2007 a new supply bidding process for regulated customers was initiated, where a total of 5,700 GWh/year were awarded starting on 2011. According to the provisions of article Nº 135 of DLF Nº4, in March 2008 this process will continue with an invitation to tender 1,800 GWh/year, also starting on the year 2011. 54 enersis07 ANNUAL REPORT Colombia 01. INDUSTRY STRUCTURE The only electricity interconnected system in Colombia is the National Interconnected System or the Colombian SIN, formed by generating plants, the interconnection network, Colombia’s Electric Law establishes certain principles regional and inter-regional transmission lines and the users’ for the electricity industry that are implemented by way of electrical loads. resolutions published by the Electricity and Gas Regulating The SIN has an installed capacity of 13,406 MW as Commission (Comision de Regulacion de Electricidad y of the year 2007, mostly hydraulic. The system’s annual Gas, the CREG) as well as other regulating bodies that generation reached 53,624 GWh and the sales totaled govern the sector. 72,661 GWh. Prior to the approval of the Electricity Law in Colombia, The generation sector is organized on a competitive base, the Colombian electric sector relied on great vertical where the generating companies sell their production on integration. Colombia’s Electric Law -separately- the spot electricity market in a common energy pool known standardized the generation, transmission, trading and as the Energy Exchange at the spot price or by means of distribution (“the Activities”). By virtue of this law, any private long term contracts signed with some members of national or international company can participate in any of the market and with non regulated users at freely negotiated the Activities. Nonetheless, new companies must limit their prices. participation exclusively to one of these Activities. Trading The buying and selling of electricity is carried out by can be combined with generation or distribution. Those way of bilateral transactions that can take place between companies that come vertically integrated at the time the generators, distributors, traders and non regulated Electricity Law of Colombia went into effect can continue customers. However, the CREG has been working since participating in all the Activities that they participated in 2004 on a proposal that will modify the contracting set- before the law was enforced, but they must keep separate up on the Colombian market to take it to an Electronic accounting records for each Activity. Contracts System. The Ministry of Mines and Energy is the body that defines The Colombian electricity market is less regulated than the government policies for the energy sector. However, markets in other countries where we operate. Companies the other organizations that have an important role in the have complete freedom to offer their electricity at the price electric industry are: the Public and Residential Services determined by market conditions, rather than being obliged Commission (Superintendencia de Servicios Publicos by some centralized operating entity to generate electricity y Domiciliarios (SSPD), the CREG and the Energy and according to the minimum system marginal costs. Mining Planning Unit (Unidad de Planeacion Minera y Energetica). Generation Plant La Tinta Type Installed Capacity Hydro 20 MW Plant Paraiso Type Installed Capacity Hydro 277 MW Plant Limonar Type Installed Capacity Plant Tequendama Type Installed Capacity Plant La Junca Type Installed Capacity Plant Charquito Type Installed Capacity Hydro 18 MW Hydro 20 MW Hydro 20 MW Hydro 20 MW Plant La Guaca Type Installed Capacity Hydro 325 MW BARRANQUILLA MEDELLÍN BOGOTÁ CALI NEIVA DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY ANNUAL REPORT 55 Distribution Codensa Energy Sales Clients Energy Losses 11,441 GWh 2,208,559 8.7% Generation Plant Cartagena Type Installed Capacity Thermal 142 MW Plant El Guavio Type Installed Capacity Hydro 1,213 MW Plant Termozipa Type Installed Capacity Thermal 236 MW Plant Betania Type Installed Capacity Hydro 541 MW 56 enersis07 ANNUAL REPORT 02. ELECTRICITY GENERATION Enersis participates in the generation of electric energy in Colombia by way of Endesa Chile and its subsidiary Emgesa, in which it has, indirectly, a 17.4% shareholding. In Colombia, other generating companies connected to the electricity system are: Empresa Publica de Medellín, Isagen, Corelca, EPSA, Chivor. EMGESA On September 1, 2007, the merger between the Colombian companies Emgesa S.A. E.S.P. and Central Hidroeléctrica de Betania S.A. E.S.P. took place; the latter was the surviving company, and it changed its name to Emgesa S.A. E.S.P. It is the largest electricity generating company in Colombia, located in the outskirts of the city of Bogotá. It consists of eleven plants with a total capacity of 2,829 MW amongst which is El Guavio with 1,213 MW which is the largest hydro-electrical plant in Colombia. Of the existing eleven plants, nine are hydro-electric and two are thermal and they represent 21% of the total installed capacity of the country’s electrical generation. Net generation amounted to 11,942 GWh in 2007; where 96% is hydro-electrical, representing a 22% of the country’s total general; while physical sales amounted to 15,613 GWh in 2007. DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY ANNUAL REPORT 57 03. ELECTRICITY DISTRIBUTION Codensa acquired 7,957 GWh, being 38% of its energy In relation to the tariff situation, during 2007 the relevant in 2007 from Emgesa and a 62% from other suppliers. aspects for setting tariffs for the period 2008 were defined. In terms of energy losses, they dropped from 8.9% to In this respect, the Ministry of Mines and Energy issued Enersis distributes electric energy in Colombia through its 8.7% in 2007. Efforts for controlling these losses has been decrees 387 and 388 through which the trading and subsidiary Codensa, of which it has, directly and indirectly, focused on incorporating new technology and techniques distribution policies that frame the future tariff revision were a 23.0% shareholding. for loss identification, as well as strengthening the customer/ established. In addition, the revision process of distribution Since 2001, Codensa has only provided services to company relationship based on technical knowledge and rates was formally initiated and the new tariff formula that regulated customers. More than 9.5 million inhabitants, the transparency of our actions. will be in force over the next five years was made official. around 20.7% of the Colombia population, reside in this distributor’s service area. In Colombia, other electric distributors are: Empresa de Energía Cundinamarca, EEPP Medellín, Electrificadora de la Costa Atlántica and Electrificadora del Caribe. CODENSA It distributes and trades electric energy in Bogotá and in 96 municipalities in the Departments of Cundinamarca, Boyacá and Tolima, in an operating area covering 14,087 km2. It delivers electric energy ser vices to 2,208,559 customers, a 3.3% more than the previous year. Of the total, 88.4% are residential customers, 9.7% are commercial, 1.7% is industrial and 0.2% is other clients. During 2007, energy sales to end customers reached 11,441 GWh, representing an increase of 6.4% over 2006. This was distributed by 35.1% to the residential sector, 15.4% to the commercial sector, 6.1% to the industrial and 43.4% to other sectors. 58 enersis07 ANNUAL REPORT Peru 01. INDUSTRY STRUCTURE The SEIN has an installed capacity of 5,152 MW as of year 2007. The system’s annual generation reached The regulatory framework of the Peruvian electric 27,255 GWh and sales totaled 24,615 GWh. industry is similar to the Chilean one. In Peru, the Ministry Starting in October 1997, technical standards were of Energy and Mines defines the policies of the energy established for the comparison of quality and service sector and regulates issues related to the environment, in conditions delivered by the electricity companies. As of addition to the granting, the supervision, the license terms October 1999, those companies that do not comply with and expiration, the permits and concessions for generation the minimum standards of quality are subject to fines and activity amongst others. However, the other bodies that surcharges applied by the OSINERG, in addition to the hold a significant role in the electric industry are: Energy compensatory mechanisms for those customers whose Investment Supervisory Agency (Organismo Supervisor service does not meet standards. de la Inversion en Energia (OSINERG) and the System The Deputy Management of Tariff Regulation (Gerencia Economic Operations Committee (Comite de Operacion Adjunta de Regulacion Tarifaria ) is the OSINERG executive Economica del Sistema (COES). body responsible for proposing to the Advisory Board of Some of the more significant features of the regulatory this Agency the electric energy tariffs and the transport framework that are applied to the electrical sector in Peru tariffs for liquid hydrocarbons by ducts, the transport tariffs are: vertical disintegration or the separation of its three main of natural gas by ducts and natural gas distribution by duct activities: generation, transmission and distribution; energy network in compliance with the criteria established in the offer price freedom on competitive markets and a price Electrical Concessions Law and the norms applicable on regulated system based on the principle of efficiency and the hydrocarbons sub-sector. the private operation of interconnected electricity systems The dispatch methodology and price setting at a subject to principles of efficiency and service quality. generation level in Peru are practically identical to the Peru’s electric sector is comprised of one main dispatch methodology and price setting in Chile. At a i n t e r c o n n e c t e d sy s t e m: t h e N a t i o n a l El e c t r i c a l transmission level, the lines are divided into two systems, Interconnected System, or the SEIN, as well as numerous primary and secondary systems and the distribution tariffs isolated regional and smaller systems that supply electricity for electric energy are set on a basis of voltage levels. to the rural areas. DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY ANNUAL REPORT 59 Distribution Edelnor Energy Sales Clients Energy Losses 5,201 GWh 986,461 8.1% Generation Plant Moyopampa Type Installed Capacity Plant Callahuanca Type Installed Capacity Plant Huinco Type Installed Capacity Plant Matucana Type Installed Capacity Hydro 65 MW Hydro 80 MW Hydro 247 MW Hydro 129 MW Plant Huampani Type Installed Capacity Hydro 30 MW Plant Santa Rosa Type Installed Capacity Plant Ventanilla Type Installed Capacity Thermal 231 MW Thermal 493 MW Plant Yanango Type Installed Capacity Hydro 43 MW Plant Chimay Type Installed Capacity Hydro 151 MW CHICLAYO TRUJILLO LIMA CUZCO AREQUIPA 60 enersis07 ANNUAL REPORT 02. ELECTRICITY GENERATION Enersis generates electricity in Peru through Endesa Chile and its subsidiary Edegel, in which it has, indirectly a 19.8% shareholding. Peru’s increased demand is attributable, mainly, to the greater electrical demand from the mining sector whose electrical demand growth responds to the increased production of copper and gold that, in turn, responds to a rise in prices of these metals on international markets. In Peru, other generating companies connected to the electric system are: Electroperú and Egenor. EDEGEL Is located in the outskirts of the city of Lima and it consists of nine plants with a total capacity of 1,468 MW that accounts for 28% of the Peruvian system capacity. Only two are thermal plants that use natural gas as generating fuel. Edegel’s net generation amounted to 7,654 GWh, and its physical sales totaled 7,994 GWh, a 14.9% and an 18.1% increase over the previous year respectively. DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY ANNUAL REPORT 61 03. ELECTRICITY DISTRIBUTION Enersis generates electricity in Peru through its subsidiary Edelnor, in which it has, directly and indirectly, a 33.5% of its shareholding. Edelnor is the public electricity service concession company for the northern zone of Metropolitan Lima and the constitutional Province of Callao, as well as for the Huaura, Huaral, Barranca and Oyón Provinces. It serves 52 districts on an exclusive basis and it shares 5 additional districts with the distributing company in the southern zone. In the metropolitan area the Edelnor concession covers primarily the industrial zone of Lima and some of the more populous city districts. In Peru, other electric distributors are: Luz del Sur, Electro Sur, Electrocentro, ENOSA, ENSA, Hidrandina. EDELNOR The concession zone awarded to Edelnor totals 2,440 km2, of which 1,838 km2 corresponds to the northern part of Lima and Callao. Edelnor delivers electric energy service to 986,461 customers, of which 93.9% are residential, 4.1% commercial, were residential sales, 21.9% were industrial, 19.7% were are set every four years, the last one having been in 2005, 0.1% industrial and 1.9% other clients. The increase in commercial and a 21.6% was sold to other sectors. thus an adjustment is not expected till the price settings number of users was 3.7% over year 2006. Edelnor’s energy purchases amounted to 5,259 GWh, of 2009. Physical energy sales for the period 2007 totaled recording an increase of 3.2% over the year 2006. The On May 27, 2007 the Supreme Decree Nº 027-2007-EM 5,201 GWh that represented an increase of 6.7% over principal suppliers were Electroperú (50.6%), Edegel approved the Transmission Regulation. By virtue of the 2006. The increase in sales for 2007 was explained by (21.3%), Egenor (14.0%) and Cahua (6.5%). new regulation, the existing facilities as of July 2006 will higher consumption on the part of regulated customers In the case of the energy loss indicator as of December be called the Secondary Transmission System and will be primarily from the residential, trade and transpor t, 2007, this registered at 8.1%, a quite similar index to the compensated by the toll in force as of May 2009. storage and communications sectors and manufacture previous year. of rubber products sector. Of total energy sold, a 36.8% With respect to the tariff situation, the distribution rates 62 enersis07 ANNUAL REPORT OTHER BUSINESSES ANNUAL REPORT OTHER BUSINESS 63 01. CAM measurement equipment, as well as the Machine to Machine prize obtained in the United States for its solution in Telemetry technology for large Chilectra customers. In addition, awards were received in Peru The Compañía Americana de Multiservicios Ltda. (CAM), in which for architectural illumination (International Illumination Design Awards Enersis has, directly and indirectly, a 100% shareholding, focuses given by the Illuminating Engineering Society of North America) and its activities on electrical solutions and related business under three in Brazil the Banas Excellence in Metrology prize (Banas Excelencia lines of action: Measurement and Certification, Trade and Logistics en Metrologia) was awarded. and Electrical Facility Works. In another field, the Company included Human Resources Strategic Its parent company in Chile and its subsidiaries in Argentina, Brazil, Planning projects such as Talent Management, Competency-based Colombia and Peru have consolidated its presence in the region, Management and Compensations Management. successfully expanding their customer portfolio in the electrical, health, gas, industrial, mining and telecommunications sectors. CAM was granted ISO 9001:2000 certification at all its subsidiaries, hereby complying with its corporate purpose of generating a culture focused on quality and based on the commitment of achieving 02. MANSO DE VELASCO organizational efficiency and continuous improvement. Inmobiliaria Manso de Velasco Ltda. where Enersis has, directly During 2007, CAM launched its 3x2 strategic plan that expects, and indirectly, a 100% shareholding, centers its activities on the in three years, to duplicate the value of the company, a goal that development of significant real estate projects and in offering will contribute greater value and income to the Enersis Group. In assessment to companies within the Group at a Latin American level view of this, it has developed an ambitious business plan focused on everything related to the acquisition, sale and development of real on expanding its holding in the markets where it operates, with non estate assets. During the year 2007 significant progress was made related clients, in addition to strengthening the relationship and the in the urbanization and the marketing of the ENEA project targeted quality of the service delivered to companies within the Group. at the industrial sector, as well as in the marketing of properties in The growth process has been strengthened by the optimization of the Santiago commune. the services offered and the constant quest for new businesses and In addition to the above initiatives the Tapihue Project can be markets. Amongst the services and products that have been boosted, mentioned, that addresses the real estate on the lands within the system and measurement equipment innovations, energy efficiency Tapihue, Amancay – Lot B – and La Petaca tenements. assessment and services, architectural and ornamental lighting and Within its real estate business, Manso de Velasco, furthermore, electrical projects for industrial clients can be mentioned. administers a total of 23,972 m2 of floor space, in terms of office Likewise, business with international manufacturers and distributors buildings and commercial business premises, of which the majority has been improved, achieving significant trade agreements and are rented to related companies and third parties. strategic alliances both at a country as well as at a regional level. During 2007, properties located at San Antonio 580, Santo Domingo Amongst its main achievements is the acknowledgement of 1141 and offices on Huerfanos 770 were offered on the market, for a innovative work on becoming a finalist for the Avonni prize in Chile total sales value of Ch$2,402 million. in the corporate category, for its contribution to the innovation of 64 enersis07 ANNUAL REPORT 03. SYNAPSIS During 2007 important prizes in the area of TeleManagement were achieved, amongst which those awarded by the magazine M2M stand out, such as the Value Chain Awards and the Wharton Infosys Synapsis Soluciones y Servicios IT Ltda. is a professional service Business Transformation Awards, received for TeleManagement company of Information Technology (IT), where Enersis has, directly contribution to the effective clients transformation. and indirectly, a 100% shareholding. At the same time, Synpasis attained significant financial success, Further to 20 years’ experience in the market, it has positioned itself new contracts and service renewals and adapted its organization as the Latin American leader in the field of IT solutions, primarily for structure to the new challenges of the 2008-2012 five-year period. the service, energy, telecommunications and government markets. Thus, during 2007 allocations to the value of US$ 55 million were Located in Santiago de Chile, it has offices in the principal cities obtained, US$ 16 million with related companies and US$ 39 million of the region: Buenos Aires in Argentina, Rio de Janeiro, Fortaleza with third parties, thereby consolidating the Synapsis position as an and a sales office in Sao Paulo, Brazil; Bogotá, Colombia and Lima, IT services benchmark in Latin America. ensuring thereby coverage over the most part of Latin America. The most signification areas of action at Synapsis are outsourcing and infrastructure, data centers, contact centers and mass printing services, remote applications service provider (ASP), and assessment and implementation of technology solutions to support business processes; products integration, information systems services and technologies, implementation and maintenance; information technology solution construction and development for high availability and complex business processes. In recent years the company has increased its presence on the information technology market. Synapsis manages 6 integrated and strategically positioned Data Centers, with a team of more than 1,500 highly qualified professionals providing guaranteed high availability services. Synapsis is oriented towards the optimization of corporate management and process efficiency by way of ISO 9001-2000 certification, ITIL certification, PMP certification and CMMI 3 certification, focusing on information systems, telecommunications systems, TeleManagement and control systems. 04. DIRECT AND INDIRECT ECONOMIC HOLDINGS (*) ARGENTINA Costanera El Chocón Edesur CTM TESA CEMSA CAM Argentina Synapsis Argentina Gasoducto Atacama Argentina CHILE Endesa Chile Celta Endesa Eco San Isidro Pangue Pehuenche Canela HidroAysén Chilectra Transquillota CAM Inmobiliaria Manso Velasco Synapsis Ingendesa Túnel El Melón Gasoducto Atacama Chile Gasoducto Tal Tal Electrogas GNL Chile GNL Quintero Business Gx Gx Dx Tx Tx Tx Ox Ox Ox Business Gx Gx Gx Gx Gx Gx Gx Gx Dx Tx Ox Ox Ox Ox Ox Ox Ox Ox Ox Ox Ownership 41.8% 39.2% 65.4% 53.6% 53.6% 27.0% 100.0% 100.0% 30.0% Ownership 60.0% 60.0% 60.0% 60.0% 57.0% 55.6% 45.0% 30.6% 99.1% 30.0% 100.0% 100.0% 100.0% 60.0% 60.0% 30.0% 30.0% 25.5% 20.0% 12.0% ANNUAL REPORT OTHER BUSINESS 65 BRASIL Endesa Brasil Fortaleza Cachoeira Dourada Ampla Coelce CIEN CAM Brasil Synapsis Brasil Ingendesa Brasil COLOMBIA Emgesa Codensa CAM Colombia Synapsis Colombia PERÚ Edegel Edelnor CAM Perú Synapsis Perú Business Gx, Dx, Tx Gx Gx Dx Dx Tx Ox Ox Ox Business Gx Dx Ox Ox Business Gx Dx Ox Ox Ownership 53.6% 53.6% 53.4% 69.9% 34.9% 53.6% 100.0% 100.0% 60.0% Ownership 16.1% 21.7% 100.0% 100.0% Ownership 19.8% 33.5% 100.0% 100.0% Gx: Generation Tx: Transmission / Trading Dx: Distribution Ox: Pipelines, others (*) It considers operating companies of the group 66 enersis07 ANNUAL REPORT 05. PERIMETER OF ENERSIS CORPORATE HOLDINGS (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192) (cid:45)(cid:65)(cid:82)(cid:75)(cid:69)(cid:84)(cid:192)(cid:48)(cid:76)(cid:65)(cid:67)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:17)(cid:16)(cid:16)(cid:192)(cid:5) (cid:37)(cid:78)(cid:69)(cid:82)(cid:83)(cid:73)(cid:83)(cid:192)(cid:33)(cid:71)(cid:69)(cid:78)(cid:67)(cid:73)(cid:65) (cid:41)(cid:83)(cid:76)(cid:65)(cid:83)(cid:192)(cid:35)(cid:65)(cid:89)(cid:77)(cid:199)(cid:78) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:17)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:25)(cid:25)(cid:23)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:78)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:79)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:35)(cid:33)(cid:45) (cid:16)(cid:14)(cid:16)(cid:16)(cid:25)(cid:5) (cid:41)(cid:78)(cid:77)(cid:79)(cid:66)(cid:73)(cid:76)(cid:73)(cid:65)(cid:82)(cid:73)(cid:65)(cid:192) (cid:45)(cid:65)(cid:78)(cid:83)(cid:79)(cid:192)(cid:68)(cid:69)(cid:192)(cid:54)(cid:69)(cid:76)(cid:65)(cid:83)(cid:67)(cid:79)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:51)(cid:89)(cid:78)(cid:65)(cid:80)(cid:83)(cid:73)(cid:83)(cid:192)(cid:51)(cid:79)(cid:76)(cid:85)(cid:67)(cid:73)(cid:79)(cid:78)(cid:69)(cid:83) (cid:89)(cid:192)(cid:51)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:79)(cid:83)(cid:192)(cid:41)(cid:52)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:16)(cid:19)(cid:192)(cid:5) (cid:16)(cid:14)(cid:16)(cid:17)(cid:192)(cid:5) (cid:192)(cid:18)(cid:22)(cid:14)(cid:18)(cid:5) (cid:192)(cid:192)(cid:192)(cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:25)(cid:24)(cid:5) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:18)(cid:5) (cid:25)(cid:20)(cid:14)(cid:25)(cid:16)(cid:5) (cid:18)(cid:14)(cid:20)(cid:5) (cid:25)(cid:20)(cid:14)(cid:25)(cid:25)(cid:25)(cid:25)(cid:192)(cid:5) (cid:43)(cid:79)(cid:78)(cid:69)(cid:67)(cid:84)(cid:65)(cid:192) (cid:35)(cid:72)(cid:73)(cid:76)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:51)(cid:89)(cid:78)(cid:65)(cid:80)(cid:83)(cid:73)(cid:83)(cid:192) (cid:48)(cid:69)(cid:82)(cid:220)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:51)(cid:89)(cid:78)(cid:65)(cid:80)(cid:83)(cid:73)(cid:83)(cid:192) (cid:35)(cid:79)(cid:76)(cid:79)(cid:77)(cid:66)(cid:73)(cid:65)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:192)(cid:18)(cid:14)(cid:21)(cid:5) (cid:51)(cid:89)(cid:78)(cid:65)(cid:80)(cid:83)(cid:73)(cid:83)(cid:192) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:192)(cid:192)(cid:192)(cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:16)(cid:23)(cid:5) (cid:192)(cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:25)(cid:25)(cid:19)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:78)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:79)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:48)(cid:69)(cid:82)(cid:220) (cid:192)(cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:25)(cid:25)(cid:19)(cid:24)(cid:5) (cid:192)(cid:192)(cid:192)(cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:16)(cid:22)(cid:18)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:78)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:79)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:35)(cid:79)(cid:76)(cid:79)(cid:77)(cid:66)(cid:73)(cid:65) (cid:192)(cid:192)(cid:21)(cid:23)(cid:14)(cid:21)(cid:16)(cid:5) (cid:51)(cid:79)(cid:67)(cid:14)(cid:192)(cid:33)(cid:71)(cid:82)(cid:210)(cid:67)(cid:79)(cid:76)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:35)(cid:65)(cid:77)(cid:69)(cid:82)(cid:79)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:192)(cid:192)(cid:18)(cid:21)(cid:14)(cid:24)(cid:18)(cid:5) (cid:33)(cid:71)(cid:85)(cid:65)(cid:83)(cid:192)(cid:51)(cid:65)(cid:78)(cid:84)(cid:73)(cid:65)(cid:71)(cid:79)(cid:192) (cid:48)(cid:79)(cid:78)(cid:73)(cid:69)(cid:78)(cid:84)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:20)(cid:14)(cid:25)(cid:25)(cid:24)(cid:24)(cid:192)(cid:5) (cid:192)(cid:192)(cid:21)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:192)(cid:192)(cid:192)(cid:25)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:78)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:79)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65) (cid:16)(cid:14)(cid:16)(cid:16)(cid:17)(cid:18)(cid:5) (cid:192)(cid:192)(cid:21)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:192)(cid:20)(cid:25)(cid:14)(cid:16)(cid:16)(cid:5) (cid:51)(cid:73)(cid:83)(cid:84)(cid:69)(cid:77)(cid:65)(cid:83) (cid:51)(cid:37)(cid:35)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:192)(cid:192)(cid:21)(cid:19)(cid:14)(cid:16)(cid:22)(cid:5) (cid:33)(cid:71)(cid:82)(cid:210)(cid:67)(cid:79)(cid:76)(cid:65)(cid:192)(cid:69)(cid:192) (cid:41)(cid:78)(cid:77)(cid:79)(cid:66)(cid:73)(cid:76)(cid:73)(cid:65)(cid:82)(cid:73)(cid:65)(cid:192)(cid:48)(cid:65)(cid:83)(cid:84)(cid:79)(cid:83)(cid:192) (cid:54)(cid:69)(cid:82)(cid:68)(cid:69)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:35)(cid:79)(cid:78)(cid:83)(cid:84)(cid:14)(cid:192)(cid:89)(cid:192)(cid:48)(cid:82)(cid:79)(cid:89)(cid:69)(cid:67)(cid:84)(cid:79)(cid:83)(cid:192) (cid:44)(cid:79)(cid:83)(cid:192)(cid:45)(cid:65)(cid:73)(cid:84)(cid:69)(cid:78)(cid:69)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:25)(cid:24)(cid:21)(cid:192)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:78)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:79)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76)(cid:192) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:17)(cid:23)(cid:5) (cid:16)(cid:14)(cid:16)(cid:21)(cid:192)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:21)(cid:192)(cid:5) (cid:51)(cid:89)(cid:78)(cid:65)(cid:80)(cid:83)(cid:73)(cid:83)(cid:192) (cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:16)(cid:14)(cid:17)(cid:5) (cid:16)(cid:14)(cid:17)(cid:5) (cid:192)(cid:21)(cid:14)(cid:16)(cid:16)(cid:16)(cid:17)(cid:192)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:24)(cid:18)(cid:20)(cid:19)(cid:192)(cid:5) (cid:35)(cid:72)(cid:73)(cid:76)(cid:69)(cid:67)(cid:84)(cid:82)(cid:65) (cid:192)(cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:85)(cid:68)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:16)(cid:16)(cid:17)(cid:23)(cid:21)(cid:23)(cid:192)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:16)(cid:5) (cid:44)(cid:85)(cid:90)(cid:192)(cid:33)(cid:78)(cid:68)(cid:69)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:17)(cid:16)(cid:5) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:18)(cid:5) (cid:37)(cid:77)(cid:80)(cid:82)(cid:69)(cid:83)(cid:65)(cid:192)(cid:37)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:35)(cid:79)(cid:76)(cid:73)(cid:78)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:25)(cid:24)(cid:5) (cid:35)(cid:72)(cid:73)(cid:76)(cid:69) (cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65) (cid:41)(cid:83)(cid:76)(cid:65)(cid:83)(cid:192)(cid:35)(cid:65)(cid:89)(cid:77)(cid:199)(cid:78) (cid:35)(cid:79)(cid:76)(cid:79)(cid:77)(cid:66)(cid:73)(cid:65) (cid:37)(cid:83)(cid:80)(cid:65)(cid:214)(cid:65) (cid:48)(cid:69)(cid:82)(cid:220) (cid:16)(cid:14)(cid:16)(cid:17)(cid:18)(cid:22)(cid:22)(cid:22)(cid:192)(cid:5) (cid:25)(cid:25)(cid:14)(cid:16)(cid:23)(cid:23)(cid:24)(cid:21)(cid:22)(cid:22)(cid:5) (cid:17)(cid:16)(cid:16)(cid:192)(cid:5) (cid:25)(cid:20)(cid:14)(cid:21)(cid:16)(cid:192)(cid:5) (cid:35)(cid:72)(cid:73)(cid:76)(cid:69)(cid:67)(cid:84)(cid:82)(cid:65)(cid:192)(cid:33)(cid:71)(cid:69)(cid:78)(cid:67)(cid:73)(cid:65) (cid:41)(cid:83)(cid:76)(cid:65)(cid:83)(cid:192)(cid:35)(cid:65)(cid:89)(cid:77)(cid:199)(cid:78) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78)(cid:69)(cid:83)(cid:192) (cid:35)(cid:79)(cid:68)(cid:69)(cid:78)(cid:83)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:14)(cid:18)(cid:16)(cid:192)(cid:192)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:79)(cid:82)(cid:65) (cid:35)(cid:79)(cid:68)(cid:69)(cid:78)(cid:83)(cid:65)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14)(cid:192)(cid:53) (cid:17)(cid:16)(cid:16)(cid:192)(cid:5) (cid:37)(cid:68)(cid:69)(cid:76)(cid:78)(cid:79)(cid:82)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:22)(cid:16)(cid:14)(cid:16)(cid:16)(cid:5) (cid:37)(cid:77)(cid:80)(cid:82)(cid:69)(cid:83)(cid:65)(cid:192)(cid:68)(cid:69)(cid:192)(cid:37)(cid:78)(cid:69)(cid:82)(cid:71)(cid:210)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:34)(cid:79)(cid:71)(cid:79)(cid:84)(cid:199)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:20)(cid:14)(cid:18)(cid:17)(cid:5) (cid:21)(cid:17)(cid:14)(cid:21)(cid:17)(cid:5) (cid:16)(cid:14)(cid:21)(cid:17)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78)(cid:69)(cid:83)(cid:192) (cid:36)(cid:73)(cid:83)(cid:84)(cid:82)(cid:73)(cid:76)(cid:73)(cid:77)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:21)(cid:14)(cid:25)(cid:19)(cid:5) (cid:35)(cid:79)(cid:68)(cid:69)(cid:78)(cid:83)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:14)(cid:16)(cid:22)(cid:5) (cid:17)(cid:14)(cid:20)(cid:17)(cid:5) (cid:25)(cid:14)(cid:19)(cid:21)(cid:5) (cid:17)(cid:18)(cid:14)(cid:20)(cid:23)(cid:192)(cid:5) (cid:18)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:17)(cid:18)(cid:14)(cid:23)(cid:20)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:48)(cid:69)(cid:82)(cid:85)(cid:65)(cid:78)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:37)(cid:76)(cid:69)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:73)(cid:68)(cid:65)(cid:68)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:16)(cid:14)(cid:25)(cid:16)(cid:5) (cid:16)(cid:14)(cid:17)(cid:16)(cid:5) (cid:44)(cid:85)(cid:90)(cid:192)(cid:68)(cid:69)(cid:192)(cid:50)(cid:210)(cid:79)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:20)(cid:19)(cid:14)(cid:18)(cid:20)(cid:20)(cid:17)(cid:25)(cid:19)(cid:5) (cid:21)(cid:22)(cid:14)(cid:23)(cid:21)(cid:21)(cid:24)(cid:16)(cid:23)(cid:5) (cid:192)(cid:21)(cid:25)(cid:14)(cid:25)(cid:24)(cid:5) (cid:16)(cid:14)(cid:22)(cid:19)(cid:25)(cid:21)(cid:5) (cid:18)(cid:22)(cid:14)(cid:21)(cid:21)(cid:21)(cid:5) (cid:19)(cid:14)(cid:22)(cid:18)(cid:5) (cid:36)(cid:73)(cid:83)(cid:84)(cid:82)(cid:73)(cid:76)(cid:69)(cid:67)(cid:192) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:79)(cid:82)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:24)(cid:25)(cid:5) (cid:17)(cid:25)(cid:14)(cid:23)(cid:25)(cid:5) (cid:17)(cid:22)(cid:14)(cid:16)(cid:18)(cid:5) (cid:17)(cid:22)(cid:12)(cid:16)(cid:18)(cid:5) (cid:18)(cid:16)(cid:14)(cid:24)(cid:20)(cid:5) (cid:21)(cid:22)(cid:14)(cid:19)(cid:22)(cid:5) (cid:37)(cid:68)(cid:69)(cid:83)(cid:85)(cid:82)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:16)(cid:5) (cid:51)(cid:65)(cid:67)(cid:77)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:17)(cid:14)(cid:23)(cid:16)(cid:21)(cid:16)(cid:21)(cid:19)(cid:5) (cid:24)(cid:14)(cid:24)(cid:20)(cid:19)(cid:18)(cid:23)(cid:20)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:8)(cid:40)(cid:79)(cid:76)(cid:68)(cid:67)(cid:79)(cid:9) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:16)(cid:18)(cid:20)(cid:5) (cid:20)(cid:14)(cid:22)(cid:21)(cid:18)(cid:24)(cid:16)(cid:16)(cid:5) (cid:19)(cid:14)(cid:20)(cid:25)(cid:20)(cid:18)(cid:22)(cid:19)(cid:5) (cid:18)(cid:14)(cid:19)(cid:22)(cid:25)(cid:18)(cid:16)(cid:18)(cid:5) (cid:17)(cid:16)(cid:14)(cid:19)(cid:20)(cid:20)(cid:22)(cid:16)(cid:22)(cid:5) (cid:17)(cid:19)(cid:14)(cid:22)(cid:23)(cid:25)(cid:23)(cid:24)(cid:25)(cid:5) (cid:18)(cid:17)(cid:14)(cid:16)(cid:18)(cid:18)(cid:20)(cid:17)(cid:20)(cid:5) (cid:33)(cid:77)(cid:80)(cid:76)(cid:65) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:73)(cid:77)(cid:69)(cid:78)(cid:84)(cid:79)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:20)(cid:22)(cid:14)(cid:24)(cid:24)(cid:22)(cid:18)(cid:24)(cid:19)(cid:5) (cid:17)(cid:19)(cid:14)(cid:22)(cid:23)(cid:25)(cid:23)(cid:24)(cid:25)(cid:5) (cid:17)(cid:16)(cid:14)(cid:19)(cid:20)(cid:20)(cid:22)(cid:16)(cid:22)(cid:5) (cid:20)(cid:22)(cid:14)(cid:24)(cid:24)(cid:22)(cid:5) (cid:33)(cid:77)(cid:80)(cid:76)(cid:65)(cid:192)(cid:37)(cid:78)(cid:69)(cid:82)(cid:71)(cid:73)(cid:65)(cid:192) (cid:69)(cid:192)(cid:51)(cid:69)(cid:82)(cid:86)(cid:73)(cid:205)(cid:79)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:18)(cid:17)(cid:14)(cid:16)(cid:18)(cid:18)(cid:5) (cid:19)(cid:22)(cid:14)(cid:20)(cid:19)(cid:16)(cid:22)(cid:19)(cid:19)(cid:5) (cid:22)(cid:19)(cid:14)(cid:21)(cid:22)(cid:25)(cid:19)(cid:22)(cid:23)(cid:5) (cid:18)(cid:14)(cid:18)(cid:23)(cid:19)(cid:20)(cid:20)(cid:24)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:76)(cid:85)(cid:90)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:35)(cid:79)(cid:69)(cid:76)(cid:67)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:16)(cid:16)(cid:5) (cid:35)(cid:41)(cid:37)(cid:46)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:16)(cid:16)(cid:5) (cid:35)(cid:14)(cid:39)(cid:14)(cid:52)(cid:14) (cid:38)(cid:79)(cid:82)(cid:84)(cid:65)(cid:76)(cid:69)(cid:90)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:25)(cid:14)(cid:22)(cid:16)(cid:21)(cid:24)(cid:24)(cid:16)(cid:5) (cid:35)(cid:65)(cid:67)(cid:72)(cid:79)(cid:69)(cid:73)(cid:82)(cid:65) (cid:36)(cid:79)(cid:85)(cid:82)(cid:65)(cid:68)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:22)(cid:14)(cid:21)(cid:25)(cid:20)(cid:16)(cid:16)(cid:23)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192) (cid:45)(cid:65)(cid:82)(cid:75)(cid:69)(cid:84)(cid:192)(cid:48)(cid:76)(cid:65)(cid:67)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:17)(cid:16)(cid:16)(cid:192)(cid:5) (cid:37)(cid:78)(cid:69)(cid:82)(cid:83)(cid:73)(cid:83)(cid:192)(cid:33)(cid:71)(cid:69)(cid:78)(cid:67)(cid:73)(cid:65) (cid:41)(cid:83)(cid:76)(cid:65)(cid:83)(cid:192)(cid:35)(cid:65)(cid:89)(cid:77)(cid:199)(cid:78) ANNUAL REPORT OTHER BUSINESS 67 (cid:192)(cid:21)(cid:25)(cid:14)(cid:25)(cid:24)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:17)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:25)(cid:25)(cid:23)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:78)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:79)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:35)(cid:33)(cid:45) (cid:16)(cid:14)(cid:16)(cid:16)(cid:25)(cid:5) (cid:41)(cid:78)(cid:77)(cid:79)(cid:66)(cid:73)(cid:76)(cid:73)(cid:65)(cid:82)(cid:73)(cid:65)(cid:192) (cid:45)(cid:65)(cid:78)(cid:83)(cid:79)(cid:192)(cid:68)(cid:69)(cid:192)(cid:54)(cid:69)(cid:76)(cid:65)(cid:83)(cid:67)(cid:79)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:51)(cid:89)(cid:78)(cid:65)(cid:80)(cid:83)(cid:73)(cid:83)(cid:192)(cid:51)(cid:79)(cid:76)(cid:85)(cid:67)(cid:73)(cid:79)(cid:78)(cid:69)(cid:83) (cid:89)(cid:192)(cid:51)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:79)(cid:83)(cid:192)(cid:41)(cid:52)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:16)(cid:19)(cid:192)(cid:5) (cid:16)(cid:14)(cid:16)(cid:17)(cid:192)(cid:5) (cid:192)(cid:18)(cid:22)(cid:14)(cid:18)(cid:5) (cid:192)(cid:192)(cid:192)(cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:25)(cid:24)(cid:5) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:18)(cid:5) (cid:25)(cid:20)(cid:14)(cid:25)(cid:16)(cid:5) (cid:18)(cid:14)(cid:20)(cid:5) (cid:25)(cid:20)(cid:14)(cid:25)(cid:25)(cid:25)(cid:25)(cid:192)(cid:5) (cid:43)(cid:79)(cid:78)(cid:69)(cid:67)(cid:84)(cid:65)(cid:192) (cid:35)(cid:72)(cid:73)(cid:76)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:51)(cid:89)(cid:78)(cid:65)(cid:80)(cid:83)(cid:73)(cid:83)(cid:192) (cid:48)(cid:69)(cid:82)(cid:220)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:51)(cid:89)(cid:78)(cid:65)(cid:80)(cid:83)(cid:73)(cid:83)(cid:192) (cid:35)(cid:79)(cid:76)(cid:79)(cid:77)(cid:66)(cid:73)(cid:65)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:192)(cid:18)(cid:14)(cid:21)(cid:5) (cid:51)(cid:89)(cid:78)(cid:65)(cid:80)(cid:83)(cid:73)(cid:83)(cid:192) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:192)(cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:25)(cid:25)(cid:19)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:78)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:79)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:192)(cid:192)(cid:21)(cid:23)(cid:14)(cid:21)(cid:16)(cid:5) (cid:51)(cid:79)(cid:67)(cid:14)(cid:192)(cid:33)(cid:71)(cid:82)(cid:210)(cid:67)(cid:79)(cid:76)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:35)(cid:65)(cid:77)(cid:69)(cid:82)(cid:79)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:192)(cid:192)(cid:192)(cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:16)(cid:23)(cid:5) (cid:48)(cid:69)(cid:82)(cid:220) (cid:192)(cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:25)(cid:25)(cid:19)(cid:24)(cid:5) (cid:192)(cid:192)(cid:192)(cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:16)(cid:22)(cid:18)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:78)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:79)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:35)(cid:79)(cid:76)(cid:79)(cid:77)(cid:66)(cid:73)(cid:65) (cid:192)(cid:192)(cid:18)(cid:21)(cid:14)(cid:24)(cid:18)(cid:5) (cid:33)(cid:71)(cid:85)(cid:65)(cid:83)(cid:192)(cid:51)(cid:65)(cid:78)(cid:84)(cid:73)(cid:65)(cid:71)(cid:79)(cid:192) (cid:48)(cid:79)(cid:78)(cid:73)(cid:69)(cid:78)(cid:84)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:20)(cid:14)(cid:25)(cid:25)(cid:24)(cid:24)(cid:192)(cid:5) (cid:192)(cid:192)(cid:21)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:16)(cid:14)(cid:16)(cid:16)(cid:17)(cid:18)(cid:5) (cid:192)(cid:192)(cid:21)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:192)(cid:192)(cid:21)(cid:19)(cid:14)(cid:16)(cid:22)(cid:5) (cid:33)(cid:71)(cid:82)(cid:210)(cid:67)(cid:79)(cid:76)(cid:65)(cid:192)(cid:69)(cid:192) (cid:41)(cid:78)(cid:77)(cid:79)(cid:66)(cid:73)(cid:76)(cid:73)(cid:65)(cid:82)(cid:73)(cid:65)(cid:192)(cid:48)(cid:65)(cid:83)(cid:84)(cid:79)(cid:83)(cid:192) (cid:54)(cid:69)(cid:82)(cid:68)(cid:69)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:35)(cid:79)(cid:78)(cid:83)(cid:84)(cid:14)(cid:192)(cid:89)(cid:192)(cid:48)(cid:82)(cid:79)(cid:89)(cid:69)(cid:67)(cid:84)(cid:79)(cid:83)(cid:192) (cid:44)(cid:79)(cid:83)(cid:192)(cid:45)(cid:65)(cid:73)(cid:84)(cid:69)(cid:78)(cid:69)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:192)(cid:192)(cid:192)(cid:25)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:78)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:79)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65) (cid:192)(cid:20)(cid:25)(cid:14)(cid:16)(cid:16)(cid:5) (cid:51)(cid:73)(cid:83)(cid:84)(cid:69)(cid:77)(cid:65)(cid:83) (cid:51)(cid:37)(cid:35)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:25)(cid:24)(cid:21)(cid:192)(cid:5) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:17)(cid:23)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:78)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:45)(cid:85)(cid:76)(cid:84)(cid:73)(cid:83)(cid:69)(cid:82)(cid:86)(cid:73)(cid:67)(cid:73)(cid:79)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76)(cid:192) (cid:16)(cid:14)(cid:16)(cid:21)(cid:192)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:21)(cid:192)(cid:5) (cid:51)(cid:89)(cid:78)(cid:65)(cid:80)(cid:83)(cid:73)(cid:83)(cid:192) (cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:16)(cid:14)(cid:17)(cid:5) (cid:16)(cid:14)(cid:17)(cid:5) (cid:192)(cid:21)(cid:14)(cid:16)(cid:16)(cid:16)(cid:17)(cid:192)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:24)(cid:18)(cid:20)(cid:19)(cid:192)(cid:5) (cid:35)(cid:72)(cid:73)(cid:76)(cid:69)(cid:67)(cid:84)(cid:82)(cid:65) (cid:192)(cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:85)(cid:68)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:16)(cid:16)(cid:17)(cid:23)(cid:21)(cid:23)(cid:192)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:16)(cid:5) (cid:44)(cid:85)(cid:90)(cid:192)(cid:33)(cid:78)(cid:68)(cid:69)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:17)(cid:16)(cid:5) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:18)(cid:5) (cid:37)(cid:77)(cid:80)(cid:82)(cid:69)(cid:83)(cid:65)(cid:192)(cid:37)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:35)(cid:79)(cid:76)(cid:73)(cid:78)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:25)(cid:24)(cid:5) (cid:35)(cid:72)(cid:73)(cid:76)(cid:69) (cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65) (cid:41)(cid:83)(cid:76)(cid:65)(cid:83)(cid:192)(cid:35)(cid:65)(cid:89)(cid:77)(cid:199)(cid:78) (cid:35)(cid:79)(cid:76)(cid:79)(cid:77)(cid:66)(cid:73)(cid:65) (cid:37)(cid:83)(cid:80)(cid:65)(cid:214)(cid:65) (cid:48)(cid:69)(cid:82)(cid:220) (cid:16)(cid:14)(cid:16)(cid:17)(cid:18)(cid:22)(cid:22)(cid:22)(cid:192)(cid:5) (cid:25)(cid:25)(cid:14)(cid:16)(cid:23)(cid:23)(cid:24)(cid:21)(cid:22)(cid:22)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78)(cid:69)(cid:83)(cid:192) (cid:35)(cid:79)(cid:68)(cid:69)(cid:78)(cid:83)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:14)(cid:18)(cid:16)(cid:192)(cid:192)(cid:5) (cid:17)(cid:16)(cid:16)(cid:192)(cid:5) (cid:25)(cid:20)(cid:14)(cid:21)(cid:16)(cid:192)(cid:5) (cid:35)(cid:72)(cid:73)(cid:76)(cid:69)(cid:67)(cid:84)(cid:82)(cid:65)(cid:192)(cid:33)(cid:71)(cid:69)(cid:78)(cid:67)(cid:73)(cid:65) (cid:41)(cid:83)(cid:76)(cid:65)(cid:83)(cid:192)(cid:35)(cid:65)(cid:89)(cid:77)(cid:199)(cid:78) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:79)(cid:82)(cid:65) (cid:35)(cid:79)(cid:68)(cid:69)(cid:78)(cid:83)(cid:65)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14)(cid:192)(cid:53) (cid:17)(cid:16)(cid:16)(cid:192)(cid:5) (cid:37)(cid:68)(cid:69)(cid:76)(cid:78)(cid:79)(cid:82)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:22)(cid:16)(cid:14)(cid:16)(cid:16)(cid:5) (cid:37)(cid:77)(cid:80)(cid:82)(cid:69)(cid:83)(cid:65)(cid:192)(cid:68)(cid:69)(cid:192)(cid:37)(cid:78)(cid:69)(cid:82)(cid:71)(cid:210)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:34)(cid:79)(cid:71)(cid:79)(cid:84)(cid:199)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:20)(cid:14)(cid:18)(cid:17)(cid:5) (cid:21)(cid:17)(cid:14)(cid:21)(cid:17)(cid:5) (cid:16)(cid:14)(cid:21)(cid:17)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78)(cid:69)(cid:83)(cid:192) (cid:36)(cid:73)(cid:83)(cid:84)(cid:82)(cid:73)(cid:76)(cid:73)(cid:77)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:21)(cid:14)(cid:25)(cid:19)(cid:5) (cid:35)(cid:79)(cid:68)(cid:69)(cid:78)(cid:83)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:14)(cid:16)(cid:22)(cid:5) (cid:17)(cid:14)(cid:20)(cid:17)(cid:5) (cid:25)(cid:14)(cid:19)(cid:21)(cid:5) (cid:17)(cid:18)(cid:14)(cid:20)(cid:23)(cid:192)(cid:5) (cid:18)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:17)(cid:18)(cid:14)(cid:23)(cid:20)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:48)(cid:69)(cid:82)(cid:85)(cid:65)(cid:78)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:37)(cid:76)(cid:69)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:73)(cid:68)(cid:65)(cid:68)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:16)(cid:14)(cid:25)(cid:16)(cid:5) (cid:16)(cid:14)(cid:17)(cid:16)(cid:5) (cid:44)(cid:85)(cid:90)(cid:192)(cid:68)(cid:69)(cid:192)(cid:50)(cid:210)(cid:79)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:20)(cid:19)(cid:14)(cid:18)(cid:20)(cid:20)(cid:17)(cid:25)(cid:19)(cid:5) (cid:21)(cid:22)(cid:14)(cid:23)(cid:21)(cid:21)(cid:24)(cid:16)(cid:23)(cid:5) (cid:16)(cid:14)(cid:22)(cid:19)(cid:25)(cid:21)(cid:5) (cid:18)(cid:22)(cid:14)(cid:21)(cid:21)(cid:21)(cid:5) (cid:19)(cid:14)(cid:22)(cid:18)(cid:5) (cid:36)(cid:73)(cid:83)(cid:84)(cid:82)(cid:73)(cid:76)(cid:69)(cid:67)(cid:192) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:79)(cid:82)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:24)(cid:25)(cid:5) (cid:17)(cid:25)(cid:14)(cid:23)(cid:25)(cid:5) (cid:21)(cid:22)(cid:14)(cid:19)(cid:22)(cid:5) (cid:17)(cid:22)(cid:14)(cid:16)(cid:18)(cid:5) (cid:17)(cid:22)(cid:12)(cid:16)(cid:18)(cid:5) (cid:37)(cid:68)(cid:69)(cid:83)(cid:85)(cid:82)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:18)(cid:16)(cid:14)(cid:24)(cid:20)(cid:5) (cid:21)(cid:16)(cid:5) (cid:51)(cid:65)(cid:67)(cid:77)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:17)(cid:14)(cid:23)(cid:16)(cid:21)(cid:16)(cid:21)(cid:19)(cid:5) (cid:24)(cid:14)(cid:24)(cid:20)(cid:19)(cid:18)(cid:23)(cid:20)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:8)(cid:40)(cid:79)(cid:76)(cid:68)(cid:67)(cid:79)(cid:9) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:16)(cid:18)(cid:20)(cid:5) (cid:20)(cid:14)(cid:22)(cid:21)(cid:18)(cid:24)(cid:16)(cid:16)(cid:5) (cid:19)(cid:14)(cid:20)(cid:25)(cid:20)(cid:18)(cid:22)(cid:19)(cid:5) (cid:18)(cid:14)(cid:19)(cid:22)(cid:25)(cid:18)(cid:16)(cid:18)(cid:5) (cid:17)(cid:16)(cid:14)(cid:19)(cid:20)(cid:20)(cid:22)(cid:16)(cid:22)(cid:5) (cid:17)(cid:19)(cid:14)(cid:22)(cid:23)(cid:25)(cid:23)(cid:24)(cid:25)(cid:5) (cid:18)(cid:17)(cid:14)(cid:16)(cid:18)(cid:18)(cid:20)(cid:17)(cid:20)(cid:5) (cid:33)(cid:77)(cid:80)(cid:76)(cid:65) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:73)(cid:77)(cid:69)(cid:78)(cid:84)(cid:79)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:20)(cid:22)(cid:14)(cid:24)(cid:24)(cid:22)(cid:18)(cid:24)(cid:19)(cid:5) (cid:17)(cid:19)(cid:14)(cid:22)(cid:23)(cid:25)(cid:23)(cid:24)(cid:25)(cid:5) (cid:17)(cid:16)(cid:14)(cid:19)(cid:20)(cid:20)(cid:22)(cid:16)(cid:22)(cid:5) (cid:20)(cid:22)(cid:14)(cid:24)(cid:24)(cid:22)(cid:5) (cid:33)(cid:77)(cid:80)(cid:76)(cid:65)(cid:192)(cid:37)(cid:78)(cid:69)(cid:82)(cid:71)(cid:73)(cid:65)(cid:192) (cid:69)(cid:192)(cid:51)(cid:69)(cid:82)(cid:86)(cid:73)(cid:205)(cid:79)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:18)(cid:17)(cid:14)(cid:16)(cid:18)(cid:18)(cid:5) (cid:19)(cid:22)(cid:14)(cid:20)(cid:19)(cid:16)(cid:22)(cid:19)(cid:19)(cid:5) (cid:22)(cid:19)(cid:14)(cid:21)(cid:22)(cid:25)(cid:19)(cid:22)(cid:23)(cid:5) (cid:18)(cid:14)(cid:18)(cid:23)(cid:19)(cid:20)(cid:20)(cid:24)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:76)(cid:85)(cid:90)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:35)(cid:79)(cid:69)(cid:76)(cid:67)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:16)(cid:16)(cid:5) (cid:35)(cid:41)(cid:37)(cid:46)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:16)(cid:16)(cid:5) (cid:35)(cid:14)(cid:39)(cid:14)(cid:52)(cid:14) (cid:38)(cid:79)(cid:82)(cid:84)(cid:65)(cid:76)(cid:69)(cid:90)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:25)(cid:14)(cid:22)(cid:16)(cid:21)(cid:24)(cid:24)(cid:16)(cid:5) (cid:35)(cid:65)(cid:67)(cid:72)(cid:79)(cid:69)(cid:73)(cid:82)(cid:65) (cid:36)(cid:79)(cid:85)(cid:82)(cid:65)(cid:68)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:22)(cid:14)(cid:21)(cid:25)(cid:20)(cid:16)(cid:16)(cid:23)(cid:5) 68 enersis07 ANNUAL REPORT 06. PERIMETER OF ENDESA CHILE CORPORATE HOLDINGS (cid:21)(cid:25)(cid:14)(cid:25)(cid:24)(cid:5) (cid:20)(cid:17)(cid:14)(cid:25)(cid:20)(cid:17)(cid:17)(cid:5) (cid:40)(cid:73)(cid:68)(cid:82)(cid:79)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:192)(cid:192)(cid:21)(cid:20)(cid:14)(cid:17)(cid:21)(cid:19)(cid:21)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:25)(cid:14)(cid:22)(cid:21)(cid:23)(cid:19)(cid:22)(cid:22)(cid:5) (cid:16)(cid:14)(cid:19)(cid:20)(cid:18)(cid:22)(cid:19)(cid:20)(cid:5) (cid:21)(cid:25)(cid:14)(cid:16)(cid:16)(cid:5) (cid:18)(cid:14)(cid:20)(cid:24)(cid:16)(cid:19)(cid:5) (cid:40)(cid:73)(cid:68)(cid:82)(cid:79)(cid:69)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65)(cid:192) (cid:37)(cid:76)(cid:192)(cid:35)(cid:72)(cid:79)(cid:67)(cid:215)(cid:78)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:22)(cid:14)(cid:17)(cid:25)(cid:19)(cid:24)(cid:5) (cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:69)(cid:82)(cid:78)(cid:192)(cid:35)(cid:79)(cid:78)(cid:69)(cid:192)(cid:48)(cid:79)(cid:87)(cid:69)(cid:82)(cid:192) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:18)(cid:14)(cid:16)(cid:5) (cid:192)(cid:25)(cid:24)(cid:5) (cid:192)(cid:21)(cid:14)(cid:21)(cid:5) (cid:35)(cid:79)(cid:77)(cid:14)(cid:192)(cid:68)(cid:69)(cid:192)(cid:37)(cid:78)(cid:69)(cid:82)(cid:71)(cid:210)(cid:65)(cid:192) (cid:68)(cid:69)(cid:76)(cid:192)(cid:45)(cid:69)(cid:82)(cid:67)(cid:79)(cid:83)(cid:85)(cid:82)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:8)(cid:35)(cid:37)(cid:45)(cid:51)(cid:33)(cid:9) (cid:192)(cid:21)(cid:17)(cid:14)(cid:25)(cid:19)(cid:18)(cid:21)(cid:19)(cid:25)(cid:5) (cid:192)(cid:192)(cid:20)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192) (cid:35)(cid:79)(cid:83)(cid:84)(cid:65)(cid:78)(cid:69)(cid:82)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:18)(cid:14)(cid:19)(cid:19)(cid:18)(cid:21)(cid:21)(cid:19)(cid:19)(cid:5) (cid:36)(cid:73)(cid:83)(cid:84)(cid:82)(cid:73)(cid:76)(cid:69)(cid:67)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:24)(cid:24)(cid:23)(cid:20)(cid:22)(cid:22)(cid:5) (cid:25)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76) (cid:48)(cid:65)(cid:82)(cid:84)(cid:73)(cid:67)(cid:73)(cid:80)(cid:65)(cid:67)(cid:79)(cid:69)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:192)(cid:17)(cid:14)(cid:16)(cid:16)(cid:5) (cid:41)(cid:78)(cid:71)(cid:69)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192) (cid:36)(cid:79)(cid:192)(cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:192)(cid:192)(cid:25)(cid:25)(cid:14)(cid:16)(cid:16)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:33)(cid:71)(cid:69)(cid:78)(cid:67)(cid:73)(cid:65) (cid:41)(cid:83)(cid:76)(cid:65)(cid:83)(cid:192)(cid:35)(cid:65)(cid:89)(cid:77)(cid:199)(cid:78) (cid:17)(cid:16)(cid:16)(cid:5) (cid:18)(cid:19)(cid:14)(cid:20)(cid:21)(cid:19)(cid:17)(cid:5) (cid:37)(cid:77)(cid:71)(cid:69)(cid:83)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:192)(cid:192)(cid:17)(cid:14)(cid:20)(cid:20)(cid:24)(cid:20)(cid:25)(cid:24)(cid:5) (cid:17)(cid:21)(cid:14)(cid:19)(cid:21)(cid:5) (cid:17)(cid:21)(cid:14)(cid:19)(cid:21)(cid:5) (cid:52)(cid:69)(cid:82)(cid:77)(cid:79)(cid:69)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65)(cid:192) (cid:45)(cid:65)(cid:78)(cid:85)(cid:69)(cid:76)(cid:192) (cid:34)(cid:69)(cid:76)(cid:71)(cid:82)(cid:65)(cid:78)(cid:79)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:52)(cid:69)(cid:82)(cid:77)(cid:79)(cid:69)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65)(cid:192) (cid:42)(cid:79)(cid:83)(cid:206)(cid:192)(cid:68)(cid:69)(cid:192) (cid:51)(cid:65)(cid:78)(cid:192)(cid:45)(cid:65)(cid:82)(cid:84)(cid:210)(cid:78)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:14)(cid:21)(cid:16)(cid:21)(cid:21)(cid:5) (cid:21)(cid:14)(cid:21)(cid:16)(cid:21)(cid:21)(cid:5) (cid:37)(cid:78)(cid:73)(cid:71)(cid:69)(cid:83)(cid:65) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:16)(cid:17)(cid:18)(cid:17)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:37)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65)(cid:192) (cid:35)(cid:79)(cid:78)(cid:79)(cid:192)(cid:51)(cid:85)(cid:82)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:192)(cid:192)(cid:23)(cid:23)(cid:14)(cid:22)(cid:23)(cid:23)(cid:22)(cid:17)(cid:23)(cid:19)(cid:5) (cid:192)(cid:192)(cid:18)(cid:18)(cid:14)(cid:19)(cid:18)(cid:18)(cid:19)(cid:23)(cid:16)(cid:22)(cid:5) (cid:21)(cid:25)(cid:14)(cid:22)(cid:19)(cid:16)(cid:25)(cid:24)(cid:5) (cid:19)(cid:22)(cid:14)(cid:18)(cid:22)(cid:24)(cid:20)(cid:21)(cid:25)(cid:5) (cid:39)(cid:69)(cid:78)(cid:69)(cid:82)(cid:65)(cid:78)(cid:68)(cid:69)(cid:83)(cid:192) (cid:48)(cid:69)(cid:82)(cid:220)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:21)(cid:14)(cid:20)(cid:20)(cid:18)(cid:21)(cid:18)(cid:23)(cid:5)(cid:192) (cid:37)(cid:68)(cid:69)(cid:71)(cid:69)(cid:76)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:192)(cid:192)(cid:192)(cid:192)(cid:20)(cid:14)(cid:17)(cid:24)(cid:20)(cid:20)(cid:22)(cid:21)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:20)(cid:22)(cid:14)(cid:24)(cid:24)(cid:22)(cid:18)(cid:24)(cid:19)(cid:5) (cid:33)(cid:77)(cid:80)(cid:76)(cid:65) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:73)(cid:77)(cid:69)(cid:78)(cid:84)(cid:79)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:19)(cid:22)(cid:14)(cid:20)(cid:19)(cid:16)(cid:22)(cid:19)(cid:19)(cid:5) (cid:33)(cid:77)(cid:80)(cid:76)(cid:65)(cid:192)(cid:192)(cid:37)(cid:78)(cid:69)(cid:82)(cid:71)(cid:73)(cid:65) (cid:69)(cid:192)(cid:51)(cid:69)(cid:82)(cid:86)(cid:73)(cid:205)(cid:79)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:22)(cid:19)(cid:14)(cid:21)(cid:22)(cid:25)(cid:19)(cid:22)(cid:23)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:76)(cid:85)(cid:90)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:20)(cid:22)(cid:14)(cid:24)(cid:24)(cid:22)(cid:18)(cid:24)(cid:19)(cid:5) (cid:21)(cid:22)(cid:14)(cid:21)(cid:25)(cid:20)(cid:16)(cid:16)(cid:23)(cid:5) (cid:35)(cid:41)(cid:37)(cid:46)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:192)(cid:18)(cid:14)(cid:18)(cid:23)(cid:19)(cid:20)(cid:20)(cid:24)(cid:5) (cid:35)(cid:79)(cid:69)(cid:76)(cid:67)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:16)(cid:16)(cid:5) (cid:192)(cid:192)(cid:16)(cid:14)(cid:16)(cid:17)(cid:5) (cid:52)(cid:82)(cid:65)(cid:78)(cid:83)(cid:80)(cid:79)(cid:82)(cid:84)(cid:65)(cid:68)(cid:79)(cid:82)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:37)(cid:78)(cid:69)(cid:82)(cid:71)(cid:210)(cid:65)(cid:192)(cid:68)(cid:69)(cid:76)(cid:192) (cid:45)(cid:69)(cid:82)(cid:67)(cid:79)(cid:83)(cid:85)(cid:82)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14)(cid:8)(cid:52)(cid:37)(cid:51)(cid:33)(cid:9) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:5) (cid:35)(cid:210)(cid:65)(cid:14)(cid:192)(cid:68)(cid:69)(cid:192)(cid:52)(cid:82)(cid:65)(cid:78)(cid:83)(cid:77)(cid:73)(cid:83)(cid:73)(cid:215)(cid:78)(cid:192) (cid:68)(cid:69)(cid:76)(cid:192)(cid:45)(cid:69)(cid:82)(cid:67)(cid:79)(cid:83)(cid:85)(cid:82)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14)(cid:192) (cid:8)(cid:35)(cid:52)(cid:45)(cid:9) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:5) (cid:17)(cid:16)(cid:16)(cid:5) (cid:35)(cid:14)(cid:39)(cid:14)(cid:52)(cid:14)(cid:192) (cid:38)(cid:79)(cid:82)(cid:84)(cid:65)(cid:76)(cid:69)(cid:90)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:25)(cid:14)(cid:22)(cid:16)(cid:21)(cid:24)(cid:24)(cid:16)(cid:5) (cid:35)(cid:65)(cid:67)(cid:72)(cid:79)(cid:69)(cid:73)(cid:82)(cid:65) (cid:36)(cid:79)(cid:85)(cid:82)(cid:65)(cid:68)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:35)(cid:72)(cid:73)(cid:76)(cid:69) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65) (cid:48)(cid:69)(cid:82)(cid:220) (cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76) (cid:35)(cid:79)(cid:76)(cid:79)(cid:77)(cid:66)(cid:73)(cid:65) (cid:41)(cid:83)(cid:76)(cid:65)(cid:83)(cid:192)(cid:35)(cid:65)(cid:89)(cid:77)(cid:199)(cid:78) (cid:48)(cid:65)(cid:78)(cid:65)(cid:77)(cid:199) (cid:25)(cid:25)(cid:14)(cid:21)(cid:17)(cid:5) (cid:37)(cid:78)(cid:73)(cid:71)(cid:69)(cid:83)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:20)(cid:25)(cid:5) (cid:25)(cid:18)(cid:14)(cid:22)(cid:21)(cid:5) (cid:48)(cid:69)(cid:72)(cid:85)(cid:69)(cid:78)(cid:67)(cid:72)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:20)(cid:14)(cid:25)(cid:23)(cid:21)(cid:17)(cid:25)(cid:5) (cid:48)(cid:65)(cid:78)(cid:71)(cid:85)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:16)(cid:17)(cid:19)(cid:24)(cid:18)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:17)(cid:17)(cid:5) (cid:52)(cid:220)(cid:78)(cid:69)(cid:76)(cid:192) (cid:37)(cid:76)(cid:192)(cid:45)(cid:69)(cid:76)(cid:215)(cid:78)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:16)(cid:16)(cid:24)(cid:24)(cid:22)(cid:5) (cid:25)(cid:24)(cid:14)(cid:23)(cid:21)(cid:5) (cid:41)(cid:78)(cid:71)(cid:69)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:14)(cid:18)(cid:21)(cid:5) (cid:19)(cid:19)(cid:14)(cid:19)(cid:19)(cid:5) (cid:39)(cid:46)(cid:44)(cid:192)(cid:35)(cid:72)(cid:73)(cid:76)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:18)(cid:16)(cid:5) (cid:39)(cid:46)(cid:44)(cid:192)(cid:49)(cid:85)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:79)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:16)(cid:16)(cid:5) (cid:35)(cid:210)(cid:65)(cid:14)(cid:192)(cid:37)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65) (cid:51)(cid:65)(cid:78)(cid:192)(cid:41)(cid:83)(cid:73)(cid:68)(cid:82)(cid:79)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:25)(cid:14)(cid:25)(cid:20)(cid:18)(cid:24)(cid:16)(cid:18)(cid:5) (cid:35)(cid:210)(cid:65)(cid:14)(cid:192)(cid:37)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65) (cid:52)(cid:65)(cid:82)(cid:65)(cid:80)(cid:65)(cid:67)(cid:199)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:16)(cid:21)(cid:23)(cid:17)(cid:25)(cid:24)(cid:5) (cid:20)(cid:18)(cid:14)(cid:21)(cid:16)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78)(cid:69)(cid:83)(cid:192) (cid:37)(cid:76)(cid:69)(cid:67)(cid:84)(cid:82)(cid:79)(cid:71)(cid:65)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:35)(cid:69)(cid:78)(cid:84)(cid:82)(cid:65)(cid:76)(cid:192)(cid:37)(cid:215)(cid:76)(cid:73)(cid:67)(cid:65) (cid:35)(cid:65)(cid:78)(cid:69)(cid:76)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:23)(cid:21)(cid:5) (cid:16)(cid:14)(cid:16)(cid:17)(cid:5) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:16)(cid:21)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:37)(cid:67)(cid:79)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:16)(cid:14)(cid:25)(cid:25)(cid:25)(cid:25)(cid:21)(cid:5) (cid:35)(cid:69)(cid:78)(cid:84)(cid:82)(cid:65)(cid:76)(cid:69)(cid:83)(cid:192) (cid:40)(cid:73)(cid:68)(cid:82)(cid:79)(cid:69)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65)(cid:83)(cid:192) (cid:68)(cid:69)(cid:192)(cid:33)(cid:89)(cid:83)(cid:206)(cid:78)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:16)(cid:14)(cid:16)(cid:16)(cid:5) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:82)(cid:67)(cid:73)(cid:79)(cid:192)(cid:192)(cid:41)(cid:78)(cid:71)(cid:69)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65) (cid:45)(cid:73)(cid:78)(cid:77)(cid:69)(cid:84)(cid:65)(cid:76)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:21)(cid:16)(cid:14)(cid:16)(cid:16)(cid:5) (cid:41)(cid:78)(cid:71)(cid:69)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:13)(cid:33)(cid:82)(cid:65)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:82)(cid:67)(cid:73)(cid:79)(cid:192) (cid:21)(cid:16)(cid:14)(cid:16)(cid:16)(cid:5) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:82)(cid:67)(cid:73)(cid:79)(cid:192) (cid:33)(cid:82)(cid:65)(cid:13)(cid:41)(cid:78)(cid:71)(cid:69)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:19)(cid:19)(cid:14)(cid:19)(cid:19)(cid:5) (cid:21)(cid:16)(cid:14)(cid:16)(cid:16)(cid:5) (cid:16)(cid:14)(cid:16)(cid:18)(cid:17)(cid:18)(cid:21)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:21)(cid:5) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:82)(cid:67)(cid:73)(cid:79)(cid:192) (cid:33)(cid:82)(cid:65)(cid:13)(cid:41)(cid:78)(cid:71)(cid:69)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192) (cid:51)(cid:69)(cid:78)(cid:69)(cid:82)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:52)(cid:82)(cid:65)(cid:78)(cid:83)(cid:81)(cid:85)(cid:73)(cid:76)(cid:76)(cid:79)(cid:84)(cid:65)(cid:192) (cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:37)(cid:76)(cid:69)(cid:67)(cid:84)(cid:82)(cid:79)(cid:71)(cid:65)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:17)(cid:5) (cid:48)(cid:82)(cid:79)(cid:71)(cid:65)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78)(cid:69)(cid:83) (cid:39)(cid:65)(cid:83)(cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65) (cid:40)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78)(cid:69)(cid:83) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:46)(cid:79)(cid:82)(cid:84)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:16)(cid:14)(cid:16)(cid:16)(cid:5) (cid:39)(cid:65)(cid:83)(cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65) (cid:39)(cid:69)(cid:78)(cid:69)(cid:82)(cid:65)(cid:67)(cid:73)(cid:215)(cid:78)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:16)(cid:16)(cid:5) (cid:37)(cid:78)(cid:69)(cid:82)(cid:71)(cid:69)(cid:88)(cid:192)(cid:35)(cid:79)(cid:14) (cid:16)(cid:14)(cid:16)(cid:17)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:5) (cid:16)(cid:14)(cid:16)(cid:21)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:16)(cid:5) (cid:192)(cid:16)(cid:14)(cid:16)(cid:21)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:16)(cid:5) (cid:192)(cid:16)(cid:14)(cid:16)(cid:19)(cid:5) (cid:21)(cid:23)(cid:14)(cid:18)(cid:19)(cid:5) (cid:39)(cid:65)(cid:83)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:79)(cid:192)(cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65)(cid:192) (cid:35)(cid:72)(cid:73)(cid:76)(cid:69)(cid:192)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:17)(cid:18)(cid:18)(cid:22)(cid:5) (cid:25)(cid:25)(cid:14)(cid:24)(cid:23)(cid:23)(cid:5) (cid:39)(cid:65)(cid:83)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:79) (cid:52)(cid:65)(cid:76)(cid:84)(cid:65)(cid:76)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:39)(cid:65)(cid:83)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:79)(cid:192)(cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:20)(cid:18)(cid:14)(cid:23)(cid:17)(cid:5) (cid:17)(cid:16)(cid:16)(cid:5) (cid:39)(cid:65)(cid:83)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:79)(cid:192)(cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:51)(cid:85)(cid:67)(cid:85)(cid:82)(cid:83)(cid:65)(cid:76)(cid:192)(cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65) (cid:25)(cid:25)(cid:14)(cid:25)(cid:16)(cid:5) (cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65)(cid:192)(cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:192)(cid:35)(cid:79)(cid:14) (cid:16)(cid:14)(cid:17)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:23)(cid:23)(cid:16)(cid:22)(cid:5) (cid:16)(cid:14)(cid:16)(cid:16)(cid:17)(cid:17)(cid:20)(cid:23)(cid:5) (cid:39)(cid:65)(cid:83)(cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:25)(cid:14)(cid:25)(cid:24)(cid:5) (cid:20)(cid:17)(cid:14)(cid:25)(cid:20)(cid:17)(cid:17)(cid:5) (cid:40)(cid:73)(cid:68)(cid:82)(cid:79)(cid:73)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:192)(cid:192)(cid:21)(cid:20)(cid:14)(cid:17)(cid:21)(cid:19)(cid:21)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:25)(cid:14)(cid:22)(cid:21)(cid:23)(cid:19)(cid:22)(cid:22)(cid:5) (cid:16)(cid:14)(cid:19)(cid:20)(cid:18)(cid:22)(cid:19)(cid:20)(cid:5) (cid:21)(cid:25)(cid:14)(cid:16)(cid:16)(cid:5) (cid:18)(cid:14)(cid:20)(cid:24)(cid:16)(cid:19)(cid:5) (cid:40)(cid:73)(cid:68)(cid:82)(cid:79)(cid:69)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65)(cid:192) (cid:37)(cid:76)(cid:192)(cid:35)(cid:72)(cid:79)(cid:67)(cid:215)(cid:78)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:22)(cid:14)(cid:17)(cid:25)(cid:19)(cid:24)(cid:5) (cid:51)(cid:79)(cid:85)(cid:84)(cid:72)(cid:69)(cid:82)(cid:78)(cid:192)(cid:35)(cid:79)(cid:78)(cid:69)(cid:192)(cid:48)(cid:79)(cid:87)(cid:69)(cid:82)(cid:192) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:18)(cid:14)(cid:16)(cid:5) (cid:192)(cid:25)(cid:24)(cid:5) (cid:192)(cid:21)(cid:14)(cid:21)(cid:5) (cid:35)(cid:79)(cid:77)(cid:14)(cid:192)(cid:68)(cid:69)(cid:192)(cid:37)(cid:78)(cid:69)(cid:82)(cid:71)(cid:210)(cid:65)(cid:192) (cid:68)(cid:69)(cid:76)(cid:192)(cid:45)(cid:69)(cid:82)(cid:67)(cid:79)(cid:83)(cid:85)(cid:82)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:8)(cid:35)(cid:37)(cid:45)(cid:51)(cid:33)(cid:9) (cid:192)(cid:21)(cid:17)(cid:14)(cid:25)(cid:19)(cid:18)(cid:21)(cid:19)(cid:25)(cid:5) (cid:192)(cid:192)(cid:20)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192) (cid:35)(cid:79)(cid:83)(cid:84)(cid:65)(cid:78)(cid:69)(cid:82)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:18)(cid:14)(cid:19)(cid:19)(cid:18)(cid:21)(cid:21)(cid:19)(cid:19)(cid:5) (cid:17)(cid:21)(cid:14)(cid:19)(cid:21)(cid:5) (cid:21)(cid:14)(cid:21)(cid:16)(cid:21)(cid:21)(cid:5) (cid:25)(cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76) (cid:48)(cid:65)(cid:82)(cid:84)(cid:73)(cid:67)(cid:73)(cid:80)(cid:65)(cid:67)(cid:79)(cid:69)(cid:83)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:21)(cid:14)(cid:16)(cid:16)(cid:5) (cid:17)(cid:21)(cid:14)(cid:19)(cid:21)(cid:5) (cid:21)(cid:14)(cid:21)(cid:16)(cid:21)(cid:21)(cid:5) (cid:52)(cid:69)(cid:82)(cid:77)(cid:79)(cid:69)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65)(cid:192) (cid:45)(cid:65)(cid:78)(cid:85)(cid:69)(cid:76)(cid:192) (cid:34)(cid:69)(cid:76)(cid:71)(cid:82)(cid:65)(cid:78)(cid:79)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:52)(cid:69)(cid:82)(cid:77)(cid:79)(cid:69)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65)(cid:192) (cid:42)(cid:79)(cid:83)(cid:206)(cid:192)(cid:68)(cid:69)(cid:192) (cid:51)(cid:65)(cid:78)(cid:192)(cid:45)(cid:65)(cid:82)(cid:84)(cid:210)(cid:78)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:37)(cid:78)(cid:73)(cid:71)(cid:69)(cid:83)(cid:65) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:16)(cid:17)(cid:18)(cid:17)(cid:5) (cid:35)(cid:79)(cid:77)(cid:80)(cid:65)(cid:214)(cid:210)(cid:65)(cid:192)(cid:37)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65)(cid:192) (cid:35)(cid:79)(cid:78)(cid:79)(cid:192)(cid:51)(cid:85)(cid:82)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:192)(cid:192)(cid:23)(cid:23)(cid:14)(cid:22)(cid:23)(cid:23)(cid:22)(cid:17)(cid:23)(cid:19)(cid:5) (cid:192)(cid:192)(cid:18)(cid:18)(cid:14)(cid:19)(cid:18)(cid:18)(cid:19)(cid:23)(cid:16)(cid:22)(cid:5) (cid:36)(cid:73)(cid:83)(cid:84)(cid:82)(cid:73)(cid:76)(cid:69)(cid:67)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:24)(cid:24)(cid:23)(cid:20)(cid:22)(cid:22)(cid:5) (cid:192)(cid:17)(cid:14)(cid:16)(cid:16)(cid:5) (cid:41)(cid:78)(cid:71)(cid:69)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192) (cid:36)(cid:79)(cid:192)(cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:192)(cid:192)(cid:25)(cid:25)(cid:14)(cid:16)(cid:16)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:33)(cid:71)(cid:69)(cid:78)(cid:67)(cid:73)(cid:65) (cid:41)(cid:83)(cid:76)(cid:65)(cid:83)(cid:192)(cid:35)(cid:65)(cid:89)(cid:77)(cid:199)(cid:78) (cid:17)(cid:16)(cid:16)(cid:5) (cid:21)(cid:25)(cid:14)(cid:22)(cid:19)(cid:16)(cid:25)(cid:24)(cid:5) (cid:19)(cid:22)(cid:14)(cid:18)(cid:22)(cid:24)(cid:20)(cid:21)(cid:25)(cid:5) (cid:192)(cid:192)(cid:192)(cid:192)(cid:20)(cid:14)(cid:17)(cid:24)(cid:20)(cid:20)(cid:22)(cid:21)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:20)(cid:22)(cid:14)(cid:24)(cid:24)(cid:22)(cid:18)(cid:24)(cid:19)(cid:5) (cid:18)(cid:19)(cid:14)(cid:20)(cid:21)(cid:19)(cid:17)(cid:5) (cid:37)(cid:77)(cid:71)(cid:69)(cid:83)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:192)(cid:192)(cid:17)(cid:14)(cid:20)(cid:20)(cid:24)(cid:20)(cid:25)(cid:24)(cid:5) (cid:39)(cid:69)(cid:78)(cid:69)(cid:82)(cid:65)(cid:78)(cid:68)(cid:69)(cid:83)(cid:192) (cid:48)(cid:69)(cid:82)(cid:220)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:21)(cid:14)(cid:20)(cid:20)(cid:18)(cid:21)(cid:18)(cid:23)(cid:5)(cid:192) (cid:37)(cid:68)(cid:69)(cid:71)(cid:69)(cid:76)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:33)(cid:77)(cid:80)(cid:76)(cid:65) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:73)(cid:77)(cid:69)(cid:78)(cid:84)(cid:79)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:19)(cid:22)(cid:14)(cid:20)(cid:19)(cid:16)(cid:22)(cid:19)(cid:19)(cid:5) (cid:33)(cid:77)(cid:80)(cid:76)(cid:65)(cid:192)(cid:192)(cid:37)(cid:78)(cid:69)(cid:82)(cid:71)(cid:73)(cid:65) (cid:69)(cid:192)(cid:51)(cid:69)(cid:82)(cid:86)(cid:73)(cid:205)(cid:79)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:22)(cid:19)(cid:14)(cid:21)(cid:22)(cid:25)(cid:19)(cid:22)(cid:23)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:83)(cid:84)(cid:76)(cid:85)(cid:90)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:20)(cid:22)(cid:14)(cid:24)(cid:24)(cid:22)(cid:18)(cid:24)(cid:19)(cid:5) (cid:21)(cid:22)(cid:14)(cid:21)(cid:25)(cid:20)(cid:16)(cid:16)(cid:23)(cid:5) (cid:35)(cid:41)(cid:37)(cid:46)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:192)(cid:18)(cid:14)(cid:18)(cid:23)(cid:19)(cid:20)(cid:20)(cid:24)(cid:5) (cid:35)(cid:79)(cid:69)(cid:76)(cid:67)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:16)(cid:16)(cid:5) (cid:192)(cid:192)(cid:16)(cid:14)(cid:16)(cid:17)(cid:5) (cid:52)(cid:82)(cid:65)(cid:78)(cid:83)(cid:80)(cid:79)(cid:82)(cid:84)(cid:65)(cid:68)(cid:79)(cid:82)(cid:65)(cid:192) (cid:68)(cid:69)(cid:192)(cid:37)(cid:78)(cid:69)(cid:82)(cid:71)(cid:210)(cid:65)(cid:192)(cid:68)(cid:69)(cid:76)(cid:192) (cid:45)(cid:69)(cid:82)(cid:67)(cid:79)(cid:83)(cid:85)(cid:82)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14)(cid:8)(cid:52)(cid:37)(cid:51)(cid:33)(cid:9) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:5) (cid:35)(cid:210)(cid:65)(cid:14)(cid:192)(cid:68)(cid:69)(cid:192)(cid:52)(cid:82)(cid:65)(cid:78)(cid:83)(cid:77)(cid:73)(cid:83)(cid:73)(cid:215)(cid:78)(cid:192) (cid:68)(cid:69)(cid:76)(cid:192)(cid:45)(cid:69)(cid:82)(cid:67)(cid:79)(cid:83)(cid:85)(cid:82)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14)(cid:192) (cid:8)(cid:35)(cid:52)(cid:45)(cid:9) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:5) (cid:17)(cid:16)(cid:16)(cid:5) (cid:35)(cid:14)(cid:39)(cid:14)(cid:52)(cid:14)(cid:192) (cid:38)(cid:79)(cid:82)(cid:84)(cid:65)(cid:76)(cid:69)(cid:90)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:25)(cid:14)(cid:22)(cid:16)(cid:21)(cid:24)(cid:24)(cid:16)(cid:5) (cid:35)(cid:65)(cid:67)(cid:72)(cid:79)(cid:69)(cid:73)(cid:82)(cid:65) (cid:36)(cid:79)(cid:85)(cid:82)(cid:65)(cid:68)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) ANNUAL REPORT OTHER BUSINESS 69 (cid:35)(cid:72)(cid:73)(cid:76)(cid:69) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65) (cid:48)(cid:69)(cid:82)(cid:220) (cid:34)(cid:82)(cid:65)(cid:83)(cid:73)(cid:76) (cid:35)(cid:79)(cid:76)(cid:79)(cid:77)(cid:66)(cid:73)(cid:65) (cid:41)(cid:83)(cid:76)(cid:65)(cid:83)(cid:192)(cid:35)(cid:65)(cid:89)(cid:77)(cid:199)(cid:78) (cid:48)(cid:65)(cid:78)(cid:65)(cid:77)(cid:199) (cid:25)(cid:25)(cid:14)(cid:21)(cid:17)(cid:5) (cid:37)(cid:78)(cid:73)(cid:71)(cid:69)(cid:83)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:20)(cid:25)(cid:5) (cid:25)(cid:18)(cid:14)(cid:22)(cid:21)(cid:5) (cid:48)(cid:69)(cid:72)(cid:85)(cid:69)(cid:78)(cid:67)(cid:72)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:20)(cid:14)(cid:25)(cid:23)(cid:21)(cid:17)(cid:25)(cid:5) (cid:48)(cid:65)(cid:78)(cid:71)(cid:85)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:16)(cid:17)(cid:19)(cid:24)(cid:18)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:17)(cid:17)(cid:5) (cid:52)(cid:220)(cid:78)(cid:69)(cid:76)(cid:192) (cid:37)(cid:76)(cid:192)(cid:45)(cid:69)(cid:76)(cid:215)(cid:78)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:16)(cid:16)(cid:24)(cid:24)(cid:22)(cid:5) (cid:25)(cid:24)(cid:14)(cid:23)(cid:21)(cid:5) (cid:41)(cid:78)(cid:71)(cid:69)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:14)(cid:18)(cid:21)(cid:5) (cid:19)(cid:19)(cid:14)(cid:19)(cid:19)(cid:5) (cid:39)(cid:46)(cid:44)(cid:192)(cid:35)(cid:72)(cid:73)(cid:76)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:18)(cid:16)(cid:5) (cid:39)(cid:46)(cid:44)(cid:192)(cid:49)(cid:85)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:79)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:16)(cid:16)(cid:5) (cid:35)(cid:210)(cid:65)(cid:14)(cid:192)(cid:37)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65) (cid:51)(cid:65)(cid:78)(cid:192)(cid:41)(cid:83)(cid:73)(cid:68)(cid:82)(cid:79)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:25)(cid:25)(cid:14)(cid:25)(cid:20)(cid:18)(cid:24)(cid:16)(cid:18)(cid:5) (cid:35)(cid:210)(cid:65)(cid:14)(cid:192)(cid:37)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65) (cid:52)(cid:65)(cid:82)(cid:65)(cid:80)(cid:65)(cid:67)(cid:199)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:16)(cid:21)(cid:23)(cid:17)(cid:25)(cid:24)(cid:5) (cid:20)(cid:18)(cid:14)(cid:21)(cid:16)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78)(cid:69)(cid:83)(cid:192) (cid:37)(cid:76)(cid:69)(cid:67)(cid:84)(cid:82)(cid:79)(cid:71)(cid:65)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:35)(cid:69)(cid:78)(cid:84)(cid:82)(cid:65)(cid:76)(cid:192)(cid:37)(cid:215)(cid:76)(cid:73)(cid:67)(cid:65) (cid:35)(cid:65)(cid:78)(cid:69)(cid:76)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:23)(cid:21)(cid:5) (cid:16)(cid:14)(cid:16)(cid:17)(cid:5) (cid:16)(cid:14)(cid:16)(cid:16)(cid:16)(cid:16)(cid:21)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:5) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:37)(cid:67)(cid:79)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:16)(cid:14)(cid:25)(cid:25)(cid:25)(cid:25)(cid:21)(cid:5) (cid:35)(cid:69)(cid:78)(cid:84)(cid:82)(cid:65)(cid:76)(cid:69)(cid:83)(cid:192) (cid:40)(cid:73)(cid:68)(cid:82)(cid:79)(cid:69)(cid:76)(cid:206)(cid:67)(cid:84)(cid:82)(cid:73)(cid:67)(cid:65)(cid:83)(cid:192) (cid:68)(cid:69)(cid:192)(cid:33)(cid:89)(cid:83)(cid:206)(cid:78)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:16)(cid:14)(cid:16)(cid:16)(cid:5) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:82)(cid:67)(cid:73)(cid:79)(cid:192)(cid:192)(cid:41)(cid:78)(cid:71)(cid:69)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65) (cid:45)(cid:73)(cid:78)(cid:77)(cid:69)(cid:84)(cid:65)(cid:76)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:21)(cid:16)(cid:14)(cid:16)(cid:16)(cid:5) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:82)(cid:67)(cid:73)(cid:79)(cid:192) (cid:41)(cid:78)(cid:71)(cid:69)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:13)(cid:33)(cid:82)(cid:65)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:21)(cid:16)(cid:14)(cid:16)(cid:16)(cid:5) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:82)(cid:67)(cid:73)(cid:79)(cid:192) (cid:33)(cid:82)(cid:65)(cid:13)(cid:41)(cid:78)(cid:71)(cid:69)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:19)(cid:19)(cid:14)(cid:19)(cid:19)(cid:5) (cid:21)(cid:16)(cid:14)(cid:16)(cid:16)(cid:5) (cid:16)(cid:14)(cid:16)(cid:18)(cid:17)(cid:18)(cid:21)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:21)(cid:5) (cid:35)(cid:79)(cid:78)(cid:83)(cid:79)(cid:82)(cid:67)(cid:73)(cid:79)(cid:192) (cid:33)(cid:82)(cid:65)(cid:13)(cid:41)(cid:78)(cid:71)(cid:69)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192) (cid:51)(cid:69)(cid:78)(cid:69)(cid:82)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:52)(cid:82)(cid:65)(cid:78)(cid:83)(cid:81)(cid:85)(cid:73)(cid:76)(cid:76)(cid:79)(cid:84)(cid:65)(cid:192) (cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:37)(cid:76)(cid:69)(cid:67)(cid:84)(cid:82)(cid:79)(cid:71)(cid:65)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:17)(cid:5) (cid:48)(cid:82)(cid:79)(cid:71)(cid:65)(cid:83)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:16)(cid:17)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78)(cid:69)(cid:83) (cid:39)(cid:65)(cid:83)(cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65) (cid:40)(cid:79)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:192)(cid:44)(cid:84)(cid:68)(cid:65)(cid:14) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:5) (cid:41)(cid:78)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:79)(cid:78)(cid:69)(cid:83) (cid:37)(cid:78)(cid:68)(cid:69)(cid:83)(cid:65)(cid:192)(cid:46)(cid:79)(cid:82)(cid:84)(cid:69)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:21)(cid:16)(cid:14)(cid:16)(cid:16)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:16)(cid:5) (cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65)(cid:192)(cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:69)(cid:192)(cid:35)(cid:79)(cid:14) (cid:16)(cid:14)(cid:17)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:25)(cid:23)(cid:23)(cid:16)(cid:22)(cid:5) (cid:16)(cid:14)(cid:16)(cid:16)(cid:17)(cid:17)(cid:20)(cid:23)(cid:5) (cid:39)(cid:65)(cid:83)(cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:16)(cid:21)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:16)(cid:5) (cid:192)(cid:16)(cid:14)(cid:16)(cid:21)(cid:5) (cid:25)(cid:25)(cid:14)(cid:25)(cid:16)(cid:5) (cid:192)(cid:16)(cid:14)(cid:16)(cid:19)(cid:5) (cid:21)(cid:23)(cid:14)(cid:18)(cid:19)(cid:5) (cid:39)(cid:65)(cid:83)(cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65) (cid:39)(cid:69)(cid:78)(cid:69)(cid:82)(cid:65)(cid:67)(cid:73)(cid:215)(cid:78)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:17)(cid:16)(cid:16)(cid:5) (cid:37)(cid:78)(cid:69)(cid:82)(cid:71)(cid:69)(cid:88)(cid:192)(cid:35)(cid:79)(cid:14) (cid:39)(cid:65)(cid:83)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:79)(cid:192)(cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65)(cid:192) (cid:35)(cid:72)(cid:73)(cid:76)(cid:69)(cid:192)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:16)(cid:14)(cid:17)(cid:18)(cid:18)(cid:22)(cid:5) (cid:25)(cid:25)(cid:14)(cid:24)(cid:23)(cid:23)(cid:5) (cid:39)(cid:65)(cid:83)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:79) (cid:52)(cid:65)(cid:76)(cid:84)(cid:65)(cid:76)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:39)(cid:65)(cid:83)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:79)(cid:192)(cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:20)(cid:18)(cid:14)(cid:23)(cid:17)(cid:5) (cid:17)(cid:16)(cid:16)(cid:5) (cid:39)(cid:65)(cid:83)(cid:79)(cid:68)(cid:85)(cid:67)(cid:84)(cid:79)(cid:192)(cid:33)(cid:84)(cid:65)(cid:67)(cid:65)(cid:77)(cid:65) (cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65)(cid:192)(cid:51)(cid:14)(cid:33)(cid:14) (cid:51)(cid:85)(cid:67)(cid:85)(cid:82)(cid:83)(cid:65)(cid:76)(cid:192)(cid:33)(cid:82)(cid:71)(cid:69)(cid:78)(cid:84)(cid:73)(cid:78)(cid:65) 70 enersis07 ANNUAL REPORT RISK FACTORS ANNUAL REPORT RISK FACTORS 71 Enersis is an investment corporation whose assets correspond Operating / Commercial Risks mostly to investments placed in their subsidiaries. In order to face our An important part of the business of some of our subsidiary financial obligations, we rely on dividends, loans, interest payments, companies relies on the hydraulic conditions of the area in which they capital reductions and other payments that we receive from our operate and, thus, eventual drought conditions can have a negative subsidiaries, as well as the issuance of our own capital stock and impact on Enersis’ profit. Almost 63% of our consolidated generation our borrowing power. in Latin America is hydraulic, thus adverse hydrological conditions can In response to the nature of the business, as well as to the have a negative impact on the business and its operating results. geographical diversity of our investments, there are a number of risk During drought periods, the electricity supplied by thermal plants factors that could, ultimately, challenge the stability of our businesses is dispatched with greater frequency; this includes the electricity in any of the countries in which we operate. supplied by those generators that use natural gas, fuel oil or coal Our extensive experience in the electricity business in the region as fuel. Operating expenses increase during these periods and, has trained us, however, to look for and apply all possible preventive depending on the scope of the contracted commitments and with measures aimed at avoiding or moderating the unforeseen or the a view to complying with these contracts the need may arise to buy damage that exogenous issues could cause our business. electricity from third parties. The cost of this electricity purchase on Even though risk factors often appear in a combined form or have the spot market may exceed the agreed price, triggering losses. For correlated effects, for purposes of this Annual Report only we present this reason, our generating companies have developed a prudent the following main structure: commercial policy that consists basically in contracting approximately 70% of the capacity, thereby reducing exposure to abrupt variations in the spot market during periods of water scarcity. Should any of the regulating bodies impose a rationing policy resulting from extremely adverse hydrological conditions in the operating countries, the commercial and financial conditions as well as the operating results could be affected. The above, however, is permanently monitored by the commercial area of each company with a view to avoiding the negative effects brought on by these circumstances. 72 enersis07 ANNUAL REPORT In Argentina, the low price that the regulating bodies imposed on The way we value the company’s foreign investments, pursuant natural gas has directly affected production and investments in the to Chilean general accountancy principles, forces the conversion of deposits of this hydrocarbon, which at the same time has an impact non-monetary assets and liabilities of our non Chilean subsidiaries on the short and medium term availability of this fuel in Chile. The and affiliate companies into dollars, at a historical exchange rate. Due shortage of natural gas can oblige the generators of electricity to to this accounting treatment in the countries where our subsidiaries resort to the use of the more expensive fuel oil, which substantially exist and we have investments, it is possible not to include the effect increases the cost of production. of devaluation on non momentary assets in the financial report, since Strong electricity demand in the central region of Chile, together devaluations of local currency against the dollar or the Chilean peso with a low level of investments in the electric sector, exposes this are not reflected. Precisely, as a way of moderating the impact of sector of Chile in particular to the adverse effects of the Argentine local currency appreciations or devaluations against the U.S. dollar, natural gas crisis. it is proposed, in principal, to designate the debt of these subsidiaries in their respective local currency. Economic / Financial Risks Finally, Enersis has debts subject to financial guarantees and other The capability of the subsidiaries to pay dividends, interests and standard contractual restrictions that are related to ratios of maximum loans or make other distributions is subject to certain legal limits, such indebtedness to cash flow, to indebtedness-EBITDA, to debt-assets as contractual restrictions and the exchange rate controls that can be and to cash flow indices related to financial expenditure. A significant enforced in any of the five countries where the subsidiaries operate, part of the Enersis indebtedness is the cross-default provisions that, in and depends, also, on the final results. general, could lead to advance payment when other debts exceeding The profits of the Enersis subsidiaries and affiliates rely, in turn, on US$ 30 million are unfulfilled. In the case that creditors demand the macroeconomic conditions of the country in which they operate. immediate commitment acceleration, a significant part of our borrowing The product growth rate and the variation of the intensive aggregate would be payable. economic activity in electricity consumption both impact the energy The above, however, has been off-set by Enersis’ current financial demand and therefore the level of sales. Likewise, inflation, exchange strength, which has enabled it to contract unrestricted lines of credit rates and the evolution of interest rates are all important elements in for its business. determining the financial results of these companies. Towards this Lastly, the administration’s constant concern, in terms of having end, even when the diversification of the flows in five countries, in two a strong balance sheet and a solid financial state, has been clearly lines of business, constitutes a natural safeguard, The Enersis group ratified by the Risk Rating Agencies who, unanimously, raised the uses financial products destined to moderate the eventual impact of Enersis rating or rating expectancy. dramatic changes in exchange rates and interest rates. ANNUAL REPORT RISK FACTORS 73 Political / Regulatory Risks Considering that a large part of the generation and distribution business consists of regulated activities, these are exposed to the enforcement of regulatory and tariff changes by authorities in the different countries in which our subsidiary and affiliate companies operate. These actions could, in fact, impact the company’s profits. Additionally, operating subsidiaries are subject to regulations in the environmental aspect. In this respect, the constant concern and commitment of the Enersis Group on this issue should be pointed out. In fact, each project must present an environmental impact study as essential background for its global evaluation. Following this, they are submitted to the authorities with a view to offering due satisfaction of the institutional and legal requirements that each country insists on. Likewise, in response to the mandatory supply in the concession areas, each time that electric energy is considered a basic raw material, our activities can be subject to regulatory fines resulting from any violation of the current regulations in force, including energy failures or problems of quality. Some of the Latin American economies where Enersis has investments have been characterized by occasional and drastic interventions by government authorities. For example, the Argentine authorities have implemented a series of control measures and changes that have negatively affected operating results and could well continue to impact them negatively. Even though the above mentioned risks are difficult to anticipate, Enersis permanently monitors the judicial and legal situation and the sectorial regulations with the purpose of evaluating tendencies that in these areas could be unfavorable to the group’s businesses in the region. 74 enersis07 ANNUAL REPORT COMPANY ACTIVITIES F 01. FINANCIAL ACTIVITIES NATIONAL FINANCES ANNUAL REPORT COMPANY ACTIVITIES 75 In addition, on June 15, 2007, Amendment Nº 3 of the above mentioned financing was signed, through which the final maturity term was extended by one year, that is to say, until November 10, 2009 and the Enersis Consolidated Leverage clause was modified from 75% to 100%. On July 3, 1007, Standard and Poor’s announced the improvement of As of December 2007, the Enersis Group registered a total financial the Enersis Group Risk Rating from BBB- to BBB with a stability vision, debt of US$ 8,272 million. Of this amount, US$ 4,076 million was mainly due to the positive performance of the Enersis operations in incurred by Consolidated Endesa Chile and US$ 4,196 by Enersis Chile, as well as the appropriate debt service hedging. Furthermore, and its foreign subsidiaries. This debt is primarily divided between the company’s liquidity impacted, offering high financial flexibility. This bank debt and local and internal bonds. TOTAL DEBT Enersis Individual Endesa Chile Individual Otther Generation Companies Otther Distribution Companies Other businesses Total (MMUS$) ENERSIS INDIVIDUAL Banks International Bonds Local Bonds Total (MMUS$) ENDESA CHILE INDIVIDUAL Banks International Bonds Local Bonds Total (MMUS$) Chile Dic / 07 1,299 2,542 2,008 2,407 16 8,272 350 877 72 1,299 292 1,875 375 2,542 new rating responds also to the region’s optimistic scenario including electricity tariff growth, a strong increase in electricity demands and a lower degree of regulatory uncertainty. With respect to the two lines of revolving credit for US$ 200 million each, negotiated at the end of 2006 by Enersis and Endesa respectively, this continued to be fully available during the 2007 period thereby up- keeping the liquidity of both companies. Additionally, both Enersis and Endesa had credit lines available on the domestic market for an equivalent US$ 525.3 million at the closure of the 2007 period. As of December 2007, the Enersis consolidated financial debt rose with respect to the 2006 year-end closing, due mainly to local currency appreciations in Brazil and Colombia, and to greater cash flow needs due to a more aggressive investment plan. With respect to financial activities, at a national level, of Endesa Chile, hereinafter “Endesa”, the early redemption, executed on April 16, 2007, of the totality of the G Series local bond should be pointed out, amounting to UF 4 million (approximately US$ 139 million) and that would have reached maturity in October 2010, with a coupon rate of 4.8%. So as to finance the operation, Endesa Chile issued the K Series bond, dated April 19, in the amount of UF 4 million, 20 year With respect to Enersis financial activities, in January and May maturity, bullet type amortization and a 3.8% nominal rate. The cutoff 2007, two transfers of the revolving credit were made through the rate was 3.78%. agent bank BBVA, totaling US$ 35 million, reflecting as of December At the 2007 year-end closing, Endesa drew on their revolving credit to 31, 2007 a balance drawn of US$ 350 million of a total of US$ 550 the amount of US$ 116 million. Thus, the Company maintains US$ 216 million available in revolving credit. million drawn from a total of US$ 650 available. 76 enersis07 ANNUAL REPORT INTERNATIONAL FINANCES Brazil HEDGE POLICY Ampla, obtained new bank financing for US$ 135 million During 2007, the Enersis Group foreign subsidiaries over a 3 year term and refinanced US$ 40 million debt, Exchange Rate have continued to re-finance their debt in order to improve increasing the term from 2 to 5 years and lowering the rate The Group’s exchange rate hedge policy is based on price and term conditions taking advantage of the better by15 base points. Additionally, in December it achieved cash flows and its objective is the balance up-keep between macroeconomic and industry environments. Likewise, the bank financing for the bonds that mature in March 2008 the flows indexed in foreign currency (US$) and the levels foreign subsidiaries have continued to seek local currency on a 5 and 6 year term totaling US$ 163 million. Fortaleza, of assets and liabilities in that currency. This is how, during and longer term financing, in as much as their operating in turn negotiated a swap for a US$ 25 million notional 2007, Enersis, in consolidated terms, negotiated exchange flows are in said currency and the markets’ reasonable value operation that transformed part of the dollar debt rate swaps for approximately US$ 80 million, which enabled terms permit it. into Reales, enabling adjustment of its operating income it to maintain a level of liability adjusted to the expected Thus, in 2007 financial operations, both refinancing and indexing. During the year Coelce took bank loans for US$ flows in said currency. new issues and hedging, were implemented in foreign 71 million and negotiated swaps to cover the rate risk and Additionally, this policy establishes maximum levels subsidiary companies to an total equivalent in dollars of the exchange rate risk of these debts in an approximate of accounting mismatch for Enersis and Endesa Chile approximately US$ 1,978 million, of which US$ 150 million amount of US$ 60 million. are from Argentina, US$ 494 million from Brazil, US$ 968 million from Colombia and US$ 366 million from Peru. Colombia consolidated, making it thus necessary to occasionally contract short term hedging. During 2007 the company contracted forwards for approximately US$ 26 million. By In particular, we can highlight the following financial In terms of generation, Emgesa contracted a short virtue of the actions followed during the year, the levels of operations executed this year: term bank loan for US$ 57 million and refinanced the debt accounting mismatch of the Group have been maintained through local bond issues of approximately US$ 77 million within what is established by company policies. Argentina on a 10 year term. In turn, Codensa took short term bank Edesur prepaid debts totaling US$ 65 million through financing for approximately US$ 511 million and refinanced Interest Rate funds obtained from the placement of local bonds to the the short term debt with local bond issues for approximately The Group’s policy consists of maintaining hedge levels, approximate amount of US$ 50 million on a 5 year term, as US$ 323 million over 3 and 10 year terms. total fixed debt plus protected, at around 70%. During well as a medium term bank loan for US$ 15 million. Thus, the debt’s half life was increased and the rate conditions Peru 2007, the Group’s companies have refinanced part of their originally fixed rate debts to floating rate debts that has improved. In addition, in November an interest rate swap Edelnor placed local bonds totaling US$ 50 million on generated a rise in the variable rate debt levels. With an for US$ 15 million was negotiated so as to set the medium terms of 5 to 8 years, using debt maturities as refinancing. aim to complying with the policy, interest rate swaps were term loan rate. Costanera, in turn, refinanced maturities In addition, it took short term financing for US$ 195 million, negotiated for US$ 20 million, achieving a consolidated rate for US$ 70 million through medium term bank loans and including renewals and new debt, taking advantage of the of fixed debt plus protected debt of 68.3% as of December supplier financing on a 5 year term. rate convenience of these terms. Edegel issued bonds in 2007. dollars and local currency for approximately US$ 71 million, resources that were used to refinance maturities and prepay RISK CLASSIFICATION debts, thus improving the contractual conditions and the rate. In addition, short and medium term bank debts for The Enersis risk perception has been declining over approximately US$ 50 million were negotiated. recent years. This has been endorsed by the national ANNUAL REPORT COMPANY ACTIVITIES 77 and international risk classifying agencies that during 2007 Towards the end of 2007, a working environment survey OTHER ACTIVITIES raised the company’s risk index. was carried out in all the ENDESA Group companies, the In July, Standard & Poor’s improved the Enersis and results of which will be available during the first quarter During the year Enersis carried out various activities Endesa Chile international risk index to BBB (stable), and of 2008, and that will make it possible to measure the focused on the wellbeing and the satisfaction of its workers both companies were classified as investment grade by all perception of each worker in terms of environment, labor and their family environment. Some of the main activities three international agencies. Likewise, in the same month, relations and working conditions so as to later establish included: the national risk indexing agencies Feller Rate y Fitch actions lines in those areas that require improvement. 98% • First internal photography contest. improved their local classification to AA- (stable) reflecting of workers at Enersis took part in the survey. • Dance workshops, sports schools, physical conditioning the company’s operational and financial strengthening. TRAINING PROPERTIES AND INSURANCE programs and painting workshops. • Recreation Programs and summer camps for workers’ children held during summer and winter holidays. The company owns some equipment and substations development of professional and personal skills for each c h i l d r e n at te n di n g J u n i o r, M i d d l e a n d H i g h e r located in the Metropolitan Region. The company holds one of its worker groups. Amongst these training activities, Schooling. insurance against risks such as fire, lightning, explosions, negotiation workshops for leaders and professionals, • Training activities for spouses and children of company malicious acts, earthquakes, floods, alluvium and others. certification programs for auditors (Certified Internal officials, focused on information technology and digital Enersis implemented training activities focused on the • Prizes awarded for academic excellence to workers’ BRANDS Auditor, awarded by the Institute of Internal Auditors of the awareness. United States) and training programs on subjects such as • Family oriented events such as the Children’s Christmas information technology, languages, financial and general Party and Paint Christmas. The drawings chosen from The corporation holds the following registered brand economics, amongst others, can be mentioned. the latter activity will be used on the front of the corporate names: Enersis, Chispazos, Dixsa, EnersisPLC e Internet The training programs developed during 2007 totaled Christmas card. a la velocidad de la luz Enersis PLC. 17,757 training hours, that implied an average 80 hours per 02. HUMAN RESOURCES worker, distributed in the following manner: 7% executives’ training, 42% training for professionals and 51% in training for administrative personnel. HUMAN RESOURCE DEVELOPMENT LABOR RELATIONS In 2006, a process of validation and measurement During 2007 Enersis collectively negotiated with its two of generic and technical competences of all company workers’ unions. The collective bargaining agreement with personnel was carried out, aimed at determining the gaps the Sindicato de Trabajadores Profesionales Universitarios that existed between personal skills and those required for (Professional University Workers Union) was signed in July each post. In line with the above, during 2007 training and and the collective bargaining agreement with the Sindicato development policies focused on achieving this goal were de Trabajadores Nº 1 (Nº 1 Workers’ Union) was signed in developed and implemented. December, both for a duration of four years. 78 enersis07 ANNUAL REPORT 03. SOCIAL RESPONSIBILITY Globe program, initiative aimed of modernizing the lighting EDUCATION of religious temples and civil works, contributing thereby to the conservation and preservation of cultural heritage. CIEL Educational Portal Over the past seven years, 46 work sites have benefited At the beginning of October, the Enersis Group launched Within a policy of common sustainability, the Enersis in Chile, highlighting in 2007 the new ornamental lighting the CIEL Educational Portal (Electric energy Information Group companies constantly develop Social Responsibility of the Basilica de la Merced, of the Fundacion Las Rosas Center) website -www.enersis.cl/ciel- that was developed programs aimed at adjusting to the local realities and Church and the Iglesia Catedral Castrense Nuevas Señora according to the current education programs by a group of responding to the needs of the different environments in del Rosario cathedral, all located in the Metropolitan Region; professors and company experts. which they operate. we can add to this the Iglesia Catedral de Rancagua Hereby, junior and middle school students can have Enersis and its subsidiaries Endesa Chile and Chilectra cathedral and the Zúñiga Church in the 6th Region, the access to material related to the generation, transmission are aware that besides playing a significant economic role Parroquia Santa Cruz parish church on Easter Island and and distribution of electric energy that, as it is aligned in generating, transmitting and distributing electric energy, the Parroquia Chitita parish church in Arica. with the programs of education, becomes a vital tool that they also play an essential role in the social system in which At the same time, and endorsing this commitment, at strengthens the content material the students view in they are involved. the beginning of 2007 the Enersis Group renewed for the class. For this reason, we assume a corporate citizens’ role, second time, the agreement signed with the Episcopal Through this CIEL Educational Portal, we wish to offer and together with ensuring stability, continuity and growth of Conference to continue with this initiative. Thereby, the a small but significant contribution to the education of our our operations, we are concerned with creating instruments company and its subsidiaries extended the program until children, pillars of Chilean development, without obviously and developing actions focused on the conservation of the year 2011. the environment and, at the same time, responding to the expectations of shareholders, employees, customers and Monumental Lighting omitting messages related to the care of the environment, Non Conventional Renewal Energies (ERNC) and advice on the efficient use of electric energy and accident the community in general. Through the edition of the book called Monumental prevention. The Enersis Group complies with its responsibilities in the Lighting, Enersis summarized some of the work developed three basic sustainability dimensions: economical, social through the Illuminating Monuments in the Southern Globe and environmental. program in Chile, Peru and Colombia, a compilation of the During 2007 the following actions and ventures were principal milestones of the 2004-2006 period. implemented: CULTURAL HERITAGE The historical research of the 48 buildings that appear in this book was written and implemented by Professor Miguel Laborde from the Architectural School at the Pontificia Universidad Católica de Chile (Catholic University of Chile). Illuminating Monuments In The Southern Globe As an annex, the document included a CD with all the Enersis and its subsidiaries Endesa Chile and Chilectra, photographs of the temples and monuments illuminated as well as the Endesa Foundation since 2000 have been under this initiative in Spain, Chile, Colombia, Peru and developing the Illuminating Monuments in the Southern the Dominican Republic. ANNUAL REPORT COMPANY ACTIVITIES 79 “Los Ultimos Senderos del Huemul”, a book prepared by SPONSORSHIPS the Fundacion San Ignacio del Huinay – whose partners are Endesa Chile and the Pontificia Universidad Católica Business Future of the Americas 2007 de Valparaíso – is the first book on huemules in Chile. The international conference Business Future of the Through this type of actions, the Enersis Group Americas 2007, an event organized by AmCham Chile, contributes clearly and decisively in the protection and gathered more than 300 celebrities from the political, conservation of the huemul. Chile Sustainable Energy economic and corporate sectors of the region. The seminar was sponsored by Enersis and with the participation of Ignacio Antoñanzas, the company’s Chief Executive Officer Through this book (“Chile Energia Sostenible”) of who, within the framework of the panel called “Energy: incalculable photographic value, Enersis has portrayed Global challenges and regional opportunities” referred to main features of the environment in which we operate, the tendencies being experienced by the energy sector. summarizing through images –and from a Sustainable Energy perspective and concept- part of the invaluable VIII Cycle Of Regional Development beauty of our country. For the fourth consecutive year, Enersis sponsored the Each chapter portrays some aspect of its geography, Regional Conventions organized by the Diario Financiero flora, fauna and the traditions of Chile, without forgetting that look to enhance the political, economic and social The Huemul’s Last Tracks the activities and actions carried out in each one of the debate in terms of the current issues that in some way are The company donated to all rural schools and public “Sustainability” environments. libraries throughout Chile the book The Huemul’s Last Tracks (“Los Ultimos Senderos de Huemul”), that SOCIETY summarizes 30 years of research by a group of CONAF and CODEFF scholars, conservationists and park rangers motivated in preventing the extinction of this emblematic Contributions to Foundations and Public Non-Profit Organizations species. As a relevant society actor, Enersis, through sponsorships linked to actions that are still pending in our country that would help it reach the level of a developed nation. During 2007, a total of 10 lectures were given in the principal cities throughout the country with an average 200 people at each session including opinion leaders, business men, politicians and academics. Specifically, the books were handed out to the rural and donations, supports a number of organizations and Diario Estrategia Seminars and Round Tables establishments in the surrounding protected areas where foundations that develop local public NON-PROFIT The company sponsored the conferences organized by the huemul dwells. Furthermore, junior and middle activities. During 2007, the following organizations were the Diario Estrategia newspapers and the Banco Central, school students throughout the country can download the sponsored: Hogar de Cristo, Fundación Las Rosas, whose purpose was to create awareness throughout Chile document - aimed at creating awareness and educating Fundación Paz Ciudadana, Fundacion Miguel Kast and of the financial reports prepared by said entity. There were in terms of respect for this animal – free of charge by way Fundación Tiempos Nuevos. 3 seminars in total, together with two Round Tables. of a digital file that is available on the web sites of public libraries, rural schools, the Conaf and the WCS (Wildlife Conservation Society). 80 enersis07 ANNUAL REPORT RSE Seminar For University Graduates Enersis sponsored, for the fourth consecutive year, the Corporate Social Responsibility seminar organized by Accion RSE that is targeted to high level students. On this new occasion, the title of the event was “Join! … We create the Future Together”, while its main theme was related to “associativity” as a CSR tool. “Is Chile an Associative Country? Stakeholders View, Chilean Corporate Cases of Associativity and CSR”. 8º Biarritz Forum / Vii International CSR Congress / CSR Expo In Santiago de Chile, under the slogan “Social Cohesion and Corporate Social Responsibility” the VII International III Ibero- American Corporate Rally Municipalilty of Vitacura Corporate Social Responsibility Congress was held, event An outstanding contribution was offered by Pedro Larrea, Throughout 20 07, the c ompany sponsored the that took place under the 8º Biarritz Forum umbrella. This Chief Executive Officer of ENDESA for Latin America and development of cultural activities organized by the event was sponsored by Enersis and the speaker Pedro Rodolfo Martín Villa, President of the Endesa Foundation, Municipality of Vitacura, which are held every month. Larrea, Chief Executive Officer for Latin America of Endesa, in the III Ibero-America Corporate Rally held in Santiago sat on the panel entitled “The Challenge of the New de Chile under the framework of the XVII Ibero-America Radio Beethoven Corporation: Profit through more Inclusive Business”. Summit, and whose main axis was “Social Cohesion and The company sponsored the broadcasting of Cultural Economic Growth”. The event, organized by the Production Panorama; a Radio Beethoven radio station program. Preparation of Sustainability Reports Guide and Commerce Confederation (Confederacion de la Enersis sponsored the Practical Guide to the Preparation Producción y del Comercio CPC) and the Ibero-American SEMINARS of Sustainability Reports, publication developed by Accion General Secretariat was sponsored by Enersis. RSE, a Chilean organization formed in 2000 aimed at promoting good practices in matters of Social Responsibility. The document updates the guide launched in August 2002, as it adds new standards and principles, including the G3 version of the Global Reporting Initiative amongst others. Third International Convention For Chilean Emitters For the third year running Enersis organized the International Convention of Chilean ISSUERS. The event gathered a select group of analysts and executives from the financial markets, who clarified issues referring to key considerations for improving the Capital Market, its current tendencies and its main risks at a local level. ANNUAL REPORT COMPANY ACTIVITIES 81 2007 Cigré Prize for CSR and Technological Innovation The International Counsel of Large Electrical Networks – CIGRË (El Consejo Internacional de Grandes Redes Electricas) distinguished Endesa Chile for its commitment in its relationship, support and transparency with the communities in which it operates, as well as for its prominent management in the environmental and economic areas. 2007 Best Sustainability Report Prize Endesa Chile received this distinction in the first version of the 2007 Best Sustainability Report Prize given by Accion RSE. First ENDESA Innovation Circles Conference 2006 50 Super Sales With a clear objective to strengthen co-operation bonds The Diario Financiero newspaper distinguished Enersis, AMCHAM Prize to the Best Corporate Citizen with company suppliers, the Enersis Group held the First Endesa Chile and Chilectra as part of the 50 Super Sales The Pehuén Foundation, entity sponsored by Endesa ENDESA Innovation Circles Conference (CIDE) in Santiago Corporations for 2006. On this occasion, the companies Chile, received this award for its Middle and Senior School de Chile that showed the best commercial management during 2006 Promotional Education Program for Pehuenche youths of This pioneer initiative in Latin America is part of the were distinguished, taking into account not only their profits six communities in the Alto Bío Bío area. ENDESA Group’s Innovation Model and it enables taking but also their recorded increase in income. a leap in the direction of co-operative work with their most 2007 Avonni Prize critical suppliers. PRIzES A Better Job for Chile (Un Mejor Empleo Para Chile) / Simón de Cirene Corporation The Pro Innovation Forum, together with the CPC (Production and Commerce Confederation) and the Ministry The Enersis workers, Alberto Gómez and Martín of Economy distinguished Chilectra as the most innovative Zabala participated prominently in the program “A better company in the country. During 20 07, Enersis was acknowledged for its job for Chile” of the Simón de Cirene Corporation, being performance in various fields, receiving the following distinguished for their assessment to the small business PROhumana CSR Ranking distinctions: owner María Flor Castillo, who managed to stabilize her Chilectra ranked first place on a national level and in Hall of Fame / Energía Latin America’s Best At the same time, our subsidiaries Endesa Chile socially responsible?”, research carried out by Fundación The news agency Business News Americas – through and Chilectra received, amongst others, the following PROhumana. sales throughout the year. the Metropolitan Region in the survey “Chile asks: Are we its publication TEN – distinguished Enersis as one of the acknowledgements: 10 most prominent Latin American energy corporations in the decade. 82 enersis07 ANNUAL REPORT SUBSIDIARIES AND RELATED COMPANIES SUBSIDIARIES AND ASSOCIATE COMPANIES ANNUAL REPORT 83 AGRICOLA DE CAMEROS Tax N° 78,970,360-4 Name Sociedad Agrícola de Cameros Limitada Address Américo Vespucio 0100, Pudahuel, Santiago Kind of Company Limited Partnership Tax N° 77,047,280-6 Address Camino Polpaico a Til-Til, S/N Til-Til. Telephone (56 2) 601 0601 Fax (56 2) 601 0519 External Auditors Deloitte & Touche Telephone (56 2) 378 4700 Fax (56 2) 378 4702 External Auditors Deloitte & Touche Subscribed and paid capital (M$) 5,738,046 Holding of Enersis (direct and indirect) 57.5% Corporate Purpose The society’s objective is the exploitation of a farmland. Administration Complete with the presence of 3 representatives together. Executive Officer Hugo Ayala AGRICOLA E INMOBILIARIA PASTOS VERDES Subscribed and paid capital (M$) 37,029,390 Holding of Enersis (direct and indirect) 55% Corporate Purpose The society’s objectives are the exploitation of farmland and the development of all types of real estate activities, including the urbanization, commercialization, and transfer of lands in any legal way possible. Administration Complete with the presence of 3 representatives together. Executive Officer Bernardo Küpfer AGUAS SANTIAGO PONIENTE Name Aguas Santiago Poniente S.A. Kind of Company Private Company, Held under Public Company normative Name Agrícola e Inmobiliaria Pastos Verdes Limitada Tax N° 96,773,290-7 Kind of Company Limited Partnership Address Américo Vespucio Nº 0100, Pudahuel, Santiago Telephone (56 2) 601 0601 Fax (56 2) 601 0519 External Auditors Deloitte & Touche Shares 3,996,874 Telephone (55 21) 2613 7000 Fax (55 21) 2613 7123 P.O. Box 24,210-205 Web site www.ampla.com Subscribed and paid capital (M$) 6,061,635 E-mail lbettencourt@ampla.com Holding of Enersis (direct and indirect) 55% External Auditors Deloitte & Touche Corporate Purpose To exclusively establish, construct, and exploit public services that are aimed at producing and distributing drinking water; to collect, treat, and dispose of sewage water, and to carry out the other duties that the D.F.L. Nr. 382 of 1998 expressly authorizes and its modifications. Board President Víctor Manuel Jarpa Directors Cristóbal Sánchez Andrés Salas Luis Felipe Edwards José Manuel Guzmán Executive Officer Jorge Alé AMPLA ENERGIA Name Ampla Energia e Serviços S.A. Kind of Company Publicly Held Limited Liability Stock Company Address Praça Leoni Ramos, N°01 – São Domingos, Niteroi, Rio de Janeiro, Brasil Total N° of shares 3,922,515,918,446 Subscribed and paid capital (Br. Real) 998,230,386.65 Holding of Enersis (direct and indirect) 69.88% Investments as proportion of Enersis assets 1.6% Corporate Purpose (excerpt) To study, plan, project, construct, and explore the production, transmission, conversion, distribution, and marketing systems of electrical energy, as well as to provide correlative services that have been or could be granted; to carry out research in the field of energy and to participate as a share holder in other energy sector companies. Administration Board President Mario Fernando de Melo Vice President Antonio Basílio Pires Board Nelson Ribas Eduardo dos Santos Machado Luiz Felipe Lampreia Cristián Herrera Martín Serrano Spoerer 84 enersis07 ANNUAL REPORT (Enersis Chief Financial Officer International) Gonzalo Carbó Alternate Directors José Alves de Mello Franco Marcos da Silva Crespo Principal Directors Director President Cristián Eduardo Fierro Montes Regulation Director José Alves de Mello Franco Commercial Director Luciano Alberto Galasso Samaria Human Resources Director Carlos Ewandro Naegale Moreira Energy Losses Director Claudio Rivera Moya Administratie-Financial Director Luiz Carlos Laurens Ortins de Bettencourt Legal Director Déborah Meirelles Rosa Brasil Technical Director Albino Motta da Cruz Government Relationships and Environmental Director André Moragas da Costa AMPLA INVESTIMENTOS Subscribed and paid capital (Br. Real) 120,000,000 Holding of Enersis (direct and indirect) 69.88% Investments as proportion of Enersis assets 0.14% Corporate Purpose To study, plan, project, construct, and explore the production, transmission, conversion, distribution, and marketing systems of electrical energy, as well as to lend correlative services that have been or could be granted; to lend services of any kind and to participate as a share holder in other energy sector companies. Board President Mário Fernando de Melo Santos Vice President Antonio Basílio Pires e Abuquerque Board Gonzalo Carbó Cristián Herrera Fernández Marcelo Llévenes Rebolledo Martín Serrano Spoerer Nelson Ribas Visconti Luiz Felipe Lampreia Name Ampla Investimentos e Serviços S.A. ARA - INGENDESA Kind of Entity: Open Corporation Address: Praça Leoni Ramos, N°01 – parte São Domingos,Niterói, Rio de Janeiro, Brasil Telephone (55 21) 2613 7071 Fax (55 21) 2613 7153 External Auditors Deloitte & Touche Name Consorcio Ara - Ingendesa Ltda. Kind of Company Limited Partnership Tax N° 77,625,850-4 Address Santa Rosa 76 Piso 10, Santiago, Chile Corporate Purpose The provision of engineering services that comprise the project ion, planning, and implementation of engineering projects and studies, consultancy services, granting of assistance and technical information, and the administration, inspection, and development of plans and construction. Apart from that, whether it be at its own or at others´ expense, to provide all types of construction, to set up and to start, for itself or third parties, all types of establishments, be they industrial or not, and the marketing for ourselves or third parties the goods and services that are produced. In general, to develop activities that are related directly or indirectly to the above mentioned operations, all phases of commercialization, including the buying and selling of furniture, exporting and importing, and any business that partners have agreed upon that relate to the activities pointed out. Paid Capital (M$) 1,000 Holding of Enersis (direct and indirect) 29.99% Representatives Rodrigo Alcaíno Mardones Alejandro Santolaya de Pablo Alternate Representatives Fernando Orellana Welch Julio Montero Montegu Elías Arce Cyr Cristián Araneda Valdivieso ARA INGENDESA SENER Name Consorcio Ara - Ingendesa - Sener Ltda. Kind of Company Sociedad de Responsabilidad Limitada Tax N° 76,738,990-6 Address Santa Rosa 76 piso 10, Santiago, Chile Corporate Purpose The provision of engineering services that comprise the projection, planning, and implementation of engineering projects and studies, consultancy services, granting of assistance and technical information, and the administration, inspection, and development of plans and construction. Apart from that, whether it be at its own or at others´ expense, to provide all types of construction, to set up and to start, for itself or third parties, all types of establishments, be they industrial or not, and the marketing for ourselves or third parties the goods and services that are produced. In general, to develop activities that are related directly or indirectly to the above mentioned operations, all phases of commercialization, including the buying and selling of furniture, exporting and importing, and any business that partners have agreed upon that relate to the activities pointed out. In addition to the above mentioned, it will be special purpose of the company the adjudication and implementation of the Fiscal Inspection Counsel above Santiago Justice Center Concession. Paid Capital (M$) 1,000 Holding of Enersis (direct and indirect) 19.99% Representatives Rodrigo Alcaíno Mardones Alejandro Santolaya de Pablo Alternate Representatives Cristián Araneda Valdivieso Elías Arce Cyr Julio Montero Montegú Fernando Orellana Welch ATACAMA FINANCE Name Atacama Finance Co. Kind of Company Exent Company Address Caledonian House P.O. Box 265 G, George Town, Grand Cayman, Cayman Islands. Corporate Purpose The company’s main objective includes debt financing in the financial market through credit agreements and the issuing of coupons and other documents or through loans to other companies, particularly those that are involved with the Atacama Project. Paid Capital (M$) 3,130,407 Holding of Enersis (direct and indirect) 29.99% Board Manuel Irarrázaval Aldunate Daniel Bortnik Ricardo Rodríguez Horacio Reyser CACHOEIRA DOURADA Name Centrais Elétricas Cachoeira Dourada S.A. Kind of Company Closed Capital Publicly Held Liability Stock Company Address Rodovia GO 206, Km 0, Cachoeira Dourada Goiania, Goiás, Brasil Corporate Purpose The company’s corporate purpose is the carrying out of studies, planning, construction, installation, operation, and exploitation of central generators of electrical energy and the business related to these activities. Subscribed and Paid Capital (M$) 2,572,038 Kind of Company Limited Partnership Paid Capital (Br. Real) 289,339,835.85 Holding of Enersis (direct and indirect) 100% Holding of Enersis (direct and indirect) 53.36% Board President Francisco Javier Bugallo Sánchez Board Aurelio de Oliveira Guilherme Gomes Lencastre Principal Directors Executive Officer Francisco Bugallo Sánchez Commercial and Trading Manager Manuel Herrera Vargas Technical Officer José Ignacio Pires Madeiros CAM Name Compañía Americana de Multiservicios Ltda. Kind of Company Limited Partnership. Tax N° 96,543,670-7 Address Tarapacá N° 934, Santiago. Telephone (56 2) 389 7300 Fax (56 2) 389 7342 Web site www.camchile.cl E-mail cam@cam.enersis.cl External Auditors Deloitte & Touche Soc. de Auditores y Consultores Ltda. Investments as proportion of Enersis assets 1.20% Corporate Purpose (excerpt) The company’s corporate purpose is to carry out on its own or through third parties and/or third-party associates, in the country as well as abroad, services in general, real estate services and immovable asset construction, the importation, exportation, and distribution of all types of products. Representatives and Senior Executives Representatives Klaus Winkler Speringer Cristóbal Sánchez Romero Alternate Representatives Gonzalo Mardones Pantoja Eduardo López Miller Principal Directors Executive Officer Klaus Winkler Speringer Chief Operations Officer Gonzalo Mardones Pantoja Executive Officer CAM Brasil Tomás Casanegra Rivera Executive Officer CAM Perú Ricardo Camezzana Leo Executive Officer CAM Colombia Carlos A. Zarruk Gómez Executive Officer CAM Argentina Pablo Calderón Pacheco Chief Planning and Media Officer Pedro Carrizo Polanco Chief New Business Development and Technology Officer Alejandro Cabrera Croqueville CAM ARGENTINA Name Compañía Americana de Multiservicios (CAM) S.R.L. SUBSIDIARIES AND ASSOCIATE COMPANIES ANNUAL REPORT 85 Telephone (55 21) 2702 8001 Fax (55 21) 2702 8000 P.O. Box 24,450-700 External Auditors Deloitte Touche Tohmatsu. Subscribed and Paid Capital (R$) 14,327,826 Holding of Enersis (direct and indirect) 100% Corporate Purpose The offering of electrical engineering services, network and big job construction, and utility large-scale commercial services. Principal Directors General Director Tomás Casanegra Rivera CAM COLOMBIA Name Compañía Americana de Multiservicios Limitada Colombia Kind of Company Limited Partnership Subscribed and Paid Social Capital (Col. $) 1,615,500,000 Holding of Enersis (direct and indirect) 100% Corporate Purpose To carry out on its own, or through third parties and/or through third- party associates, in the country as well as abroad, the following activities: Services: the offering of professional and technical services to national and international businesses and organizations, public and private; construction and real estate services through the construction and refurbishment of all types of furniture, and project execution; The importation and exportation of all types of material; and marketing through the purchasing, sales exchange, dividing of, consignment, and distribution of all types of material. Principal Directors Executive Officer Carlos Alberto Zarruk Gómez CAM PERÚ Name Compañía Americana de Multiservicios del Perú S.R.L. Address AV. Carrera 68 No. 5-21, Bogotá, Colombia Kind of Company Limited Partnership Address Av. Vélez Sarsfield 1160, Capital Federal, Argentina Telephone (54 11) 4302 2951/58 Fax (54 11) 4302 2951/58 Total N° of Shares (quotes) 1,000,000 Subscribed and Paid Capital (M$) 496,890 Holding of Enersis (direct and indirect) 100% Corporate Purpose (excerpt) The company’s corporate purpose is to present professional and technical services to companies and national and international organizations, public and private, and to provide advice, technical assistance, staging, process control, systems set up and maintenance, machinery and equipment, transpor t and distribution network maintenance, and everything related to production, transport, and distribution of electric energy, among other objectives. Principal Directors Titular Manager Pablo Calderón Pacheco CAM BRASIL Name Cam Brasil Multiserviços Limitada Kind of Company Limited Partnership Address Av José Mendonça de Campos, 680 São Gonçalo – RJ, Brasil Telephone (57 1) 417 3000 Fax (57 1) 565 1012 External Auditors Deloitte & Touche Ltda. Total N° of Shares 1,615,500 Address Jr. Teniente César López Rojas 201, Piso 3, Maranga, San Miguel, Lima, Perú Telephone (51 1) 561 1604 Fax (51 1) 452 3007 86 enersis07 ANNUAL REPORT External Auditors Gris y Hernández y Asociados S.AC. – Deloitte & Touche. Total N° of Shares 5,220,000 Subscribed and Paid Capital (Per. New Sun) 5,220,000 Holding of Enersis (direct and indirect) 100% Corporate Purpose The company’s corporate purpose is to carry out on its own or through third-party professional and technical services the management and purchasing of materials or equipment for electrical, water, gas, or communication services, among others. Principal Directors Executive Officer Ricardo Mario Camezzana Leo CANELA Name Central Eólica Canela S.A. Kind of Company Sociedad Anónima Cerrada Tax N° 76.003.204-3 Address Santa Rosa 76, piso 12, Santiago, Chile Corporate Purpose The purpose of this company is to promote and develop plans that have to do with renewable energy, especially eolian energy; to identify and develop Mecanismo de Desarrollo Limpio (Clean Growth Mechanism) projects and act as receiver and promoter of the emission reduction certificates that are obtained in said projects. Either, the company will have as purpose to generate, transport, distribute, supply and trade electric energy, being allowed to purchase and enjoy the respective concessions and royalties. Subscribed and Paid Capital (M$) 11,280,756 known as Punta de Patache, south of Iquique, in the I Region. Likewise, the objective includes the transmission line construction with its substations between the main station and the Doña Inés de Collahuasi copper mine; as well as the reinforcing of the interconnected system of Norte Grande. Holding of Enersis (direct and indirect) 44.98% Paid Capital (M$) 94,673,684 Board Manuel Irarrázaval Aldunate Rodrigo Alcaíno Mardones Juan Benabarre Benaiges Renato Fernández Baeza Cristóbal García-Huidobro Ramírez Principal Directors Executive Officer Wilfredo Jara Tirapegui Holding of Enersis (direct and indirect) 59.98% Board President Alejandro García Chacón Board Alan Fischer Hill Liones Roa Burgos Executive Officer Eduardo Soto Trincado CELTA Name Compañía Eléctrica Tarapacá S.A. CEMSA Kind of Company Private Company Tax N° 96,770,940-9 Address Santa Rosa 76, Santiago, Chile Corporate Purpose The company’s main corporate purpose is the production, transport, distribution, and supply of electric energy, nationally as well as internationally, and as such, to obtain, acquire, and enjoy its respective favors and concessions. Additionally, another objective with the intention of seeing it through to completion, is the construction of a thermoelectric station, the construction and operation of a whar for maritime installations, for the loading and unloading of supplies and other products in the area Name Comercializadora de Energía del Mercosur S.A. Kind of Company Public Company Address Pasaje Ing. E. Butty 220, Piso 16, Buenos Aires, Argentina Corporate Purpose The company’s main corporate purpose is the wholesale buying and selling of electric energy produced by third parties and to be consumed by third par ties, including the impor tation and exportation of electric energy and the commercialization of royalties, as well as the provision and/or carrying out of related services of the above mentioned goals, in accordance with existing regulations. The company could carry out, as such, all subsidiary and complementary activities that are linked with its corporate purpose, having full legal power to acquire rights and to enter into obligations and exercise any activity that is not prohibited by law or this statute. five hydroelectric plants, which is denominated “Aysén Project”. In order to fulfill its objective, its line of business comprises the following activities: Paid Capital (M$) 7,020,284 Holding of Enersis (direct and indirect) 26.99% Board President José María Hidalgo Martín-Mateos Vice President José Venegas Maluenda Fernando Claudio Antognazza Alternate Directors Arturo Pappalardo Roberto José Fagan Pedro Cruz Viné Principal Directors Executive Officer Juan Carlos Blanco CENTRALES HIDROELECTRICAS DE AYSEN S.A. Name Centrales Hidroeléctricas de Aysén S.A. Kind of Company Private Company Tax N° 76,652,400-1 Address Miraflores 383, oficina 1302, Santiago, Chile Corporate Purpose The company’s main corporate purpose is the development, financing, ownership and exploitation of an hydroelectric project located on Eleventh Region of Aysén, which comprises an estimated capacity of 2,355 MW distributed within a) electricity production and transportation; b) supplying and commercialization of electricity towards its shareholders; c) administration, operation ans maintenance of hydraulic works, electrical systems and hydroelectric generation plants d) delivery of services related with its corporate purpose. The aforementioned activities could be carried out by it own or by third parties’ own. In order to compliance its purpose, the company could obtain, buy and make use of the concessions and permissions that required. Paid Capital (M$) 34,916,205 Holding of Enersis (direct and indirect) 30.59% Board President Antonio Albarrán Ruiz-Clavijo Principal Directors Rafael Mateo Alcalá Juan Benabarre Benaiges Rodrigo Alcaíno Mardones Bernardo Larraín Matte Luis Felipe Gazitúa Achondo Alternate Directors Jaime Fuenzalida Alessandri Carlos Martín Vergara Claudio Iglesis Guillard Eduardo Morel Montes Carlos Urenda Aldunate Vacante Executive Officer Hernán Salazar Zencovich CHILECTRA Name Chilectra S.A. SUBSIDIARIES AND ASSOCIATE COMPANIES ANNUAL REPORT 87 Kind of Company Publicly Held Limited Liability Stock Company Tax N° 96,800,570-7 Address Santa Rosa N°76, Piso 8, Santiago, Chile Telephone (56 2) 675 2000 Fax (56 2) 675 2999 P.O. Box 1557 Santiago Web site www.chilectra.cl E-mail comunicacion@chilectra.cl Secutiries Register Inscription N°0931 External Auditors KPMG Auditores Consultores Ltda. Total N° of Shares 1,150,742,161 Board President Jorge Rosenblut Vice President José M. Fernández Board Pedro Buttazzoni Joaquín Pérez de Ayala Antonio Cámara Hernán F. Errázuriz Marcelo Llévenes Principal Directors Executive Officer Rafael López Comunications Manager Juan Pablo Larraín Legal Counsel Gonzalo Vial Distribution and Services Regional Manager Cristóbal Sánchez Innovation and Human Resources Manager Cristián Herrera Energy and Regulation Manager Guillermo Pérez del Río Chief Commercial Officer Andreas Gebhardt Networks Manager Enrique Fernández Economic and Planning Manager Vacant Subscribed and paid capital (M$) 337,859,212 CHILECTRA INVERSUD Holding of Enersis (direct and indirect) 99.09% Name Chilectra Inversud S.A. Investments as proportion of Enersis assets 22.04% Corporate Purpose (excerpt) To exploit in the country and abroad, the distribution and sale of energy, be it electric, hydraulic, thermal, caloric, or of any other form, as well as the distribution, transport, and sale of all kinds of fuel, supplying said energy or fuels to the greater consuming public directly or through other companies. Tax N° 99,573,910-0 Kind of Company Private Company Address Santa Rosa 76, piso 8°, Santiago Telephone (562) 675 2000 Fax (562) 675 2000 External Auditors KPMG Auditores Consultores Ltda. Total N° of Shares 89,200 Paid Capital (US$) 892,012,110 Address: Av. España 3301, Buenos Aires; Argentina Corporate Purpose The company’s objective is the production and commercialization of electric energy. Holding of Enersis (direct and indirect) 99.09% Paid Capital (M$) 168,057,142 Corporate Purpose To exploit the business of sales and distribution of electric energy abroad, either on its own or through third parties. Likewise, the company could invest in foreign companies, as well as invest in all types of commercial tools such as in payments, vouchers, bonds, credit, negotiable furnishing values, and other financial or commercial documents, all with the vision of receiving its earned and unearned income. As for the preceding, the company could form, modify, dissolve, and liquidate foreign companies, while being able to also develop all the other activities that would be complementary and/or related to previous transfers. Board President Cristóbal Sánchez Vice President Vacant Director José Eduardo Rojas Principal Directors Executive Officer José Eduardo Rojas CHOCON Name Hidroeléctrica El Chocón S.A. Kind of Company: Publicly Held Limited Liability Stock Company Holding of Enersis (direct and indirect) 39.21% Board President Rafael Mateo Vice President José Miguel Granged Board Carlos Martin Miguel Ortiz Julio Valbuena Eduardo Adrián José Luis Mazzone Orlando Adalberto Diaz Alternate Directors Fernando Antognazza Francisco Domingo Monteleone José María Hidalgo José Luís Sierra Luís A.Acuña Manuel Irarrázaval Juan Carlos Blanco Gustavo Brockerhof Principal Executives Executive Officer Fernando Claudio Antognazza CIEN Name Compañía de Interconexión Energética S.A. Kind of Company Public Company Address Praia de Flamengo, 200 -12º andar-parte, Río de Janeiro, R.J. 22,210,030 - Brasil Corporate Purpose The company’s corporate purpose is electrical energy’s production, industrialization, distribution, and commercialization performance, including the area of imports and exports. Paid Capital (Br. Real) 285,044,682 Holding of Enersis (direct and indirect) 53.57% Board President Marcelo Llévenes Vice President Francisco Javier Bugallo Director José Venegas Principal Directors Chief Executive Officer Francisco Javier Bugallo CODENSA Name Codensa S.A. E.S.P. Kind of Company Public Company Address Carrera 13 A N° 93-66, Bogotá, Colombia Telephone (57 1) 601 6060 Fax (57 1) 601 5917 Web site www.codensa.com.co E-mail tservice@codensa.com.co External Auditors Deloitte & Touche Ltda. 88 enersis07 ANNUAL REPORT Total N° of Shares subscribed and paid 132,093,274 Subscribed and Paid Capital (Col $) 13,209,327,400 Holding of Enersis (direct and indirect) 21.73% Investments as proportion of Enersis assets 1.58% Corporate Purpose (excerpt) The distribution and commercialization of electric energy, as well as the implementation of all activities that are common, similar, complementary, and related to energy distribution and commercialization, job execution, electrical engineering design and consultancy, and product marketing benefiting its clients. Board President José Antonio Vargas Board Andrés Regué José Antonio Vargas Orlando Cabrales Lucio Rubio Astrid Martínez Pedro Rodríguez Carlos Bello Alternate Directors David Felipe Acosta Roberto Ospina Antonio Sedán José Inostroza Henry Navarro Héctor Zambrano Luis Rueda Board Assistant Alvaro Camacho Principal Directors Chief Executive Officer José Inostroza Chief Commercial Officer David Acosta Chief Communications Officer María Alexandra Velez H Chief Distribution Officer Margarita Olano Chief Financial and Administration Officer Luis Larumbe Legal Manager Alvaro Camacho Chief Planning and Control Officer Roberto Ospina Chief Human Resources Officer Carlos Alberto Niño Chief Regulation Officer Omar Serrano Chief Auditing Officer Alba Urrea COELCE Name Companhia Energética do Ceará Kind of Company Foreign Publicly Held Liability Stock Company Address Av. Barão de Studart, 2917/83, Bairro Dionísio Torres, Fortaleza, Ceará, Brasil Telephone (55 85) 3216 1350 Fax (55 85) 3216 1247 Web site www.coelce.com.br E-mail investor@coelce.com.br External Auditors Deloitte & Touche Total N° of shares 77,855,299 Subscribed and paid capital (Br. Real) 433,057,722.64 Holding of Enersis (direct and indirect) 34.90% Corporate Purpose (excerpt) To explore the distribution of electric energy and similar services in the state of Ceará. Board President Mario Fernando de Melo Vice President Marcelo Llévenes Board Luis Gastão Bittencourt José Alves de Mello Fernando de Moura Jorge Parente Frota Cristóbal Sánchez Gonzalo Vial Cristián Fierro Maria Eliza de Castro Aguinaldo Nogueira Alternate Directors Luciano Alberto Galasso José Nunes de Almeida Antonio Basilio Pires José Távora Juarez Ferreira Nelson Ribas José Caminha Alencar Teobaldo José Cavalcante Luiz Carlos Bettencourt José Renato Ferreira Vládia Viana Principal Directors Director President Abel Alves Vice President Institutional and Comunicational Projects Director José Nunes de Almeida Commercial Director Vice President Olga Carranza Technical Director Vice President José Távora Strategic Planning and Control Director Vice President Abel Pérez Organization and Human Resources Director Vice President José Ferreira Financial and Investor Relations Director Vice President Teobaldo Cavalcante CONO SUR COMPAÑIA PERUANA DE ELECTRICIDAD Name Compañía Peruana de Electricidad S.A.C. Kind of Company Private Company Address Jr. Teniente César López Rojas 201, Maranga, San Miguel, Lima, Perú Telephone (51 1) 561 1604 Fax (51 1) 452 3007 P.O. Box 32, Lima, Perú External Auditors Gris y Hernández y Asociados S.AC. – Deloitte & Touche. Total N° of Shares 83,538,403 Subscribed and Paid Capital (Per. New Sun) 83,538,403 Holding of Enersis (direct and indirect) 50.54% Corporate Purpose The company’s objective is to make investments in general, especially those involving the distribution and production of electric energy. Board Private Company without Directors Principal Directors Executive Officer Ignacio Blanco Name Compañía Eléctrica Cono Sur S.A. Kind of Company Public Company Address Edificio Omega. Av. Samuel Lewis y Calle 53, Apartado Postal 4493, Panamá 5, República de Panamá. Corporate Purpose a) The construction of all types of civil works, installations, buildings, housing, offices, etc., on its own or by third parties, on company or thirdparty land that is developed or not. b) The sale or disposal of such works and structures by any means necessary. c) The study and development of plans for such structures, including the engineering, architecture, financing, commercialization, etc. In the development of the company’s actions, the company could always act on its own or through third parties, be it directly or in participation with partnerships, communities, companies, and legal representatives of any kind, of which the company could even take on the administration. Paid Capital (M$) 1,247,877,896 Holding of Enersis (direct and indirect) 59.98% Board President Manuel Irarrázaval Principal Director Alfredo Ergas (Chief Regional Finance Officer) Carlos Martin Daniel Bortnik SUBSIDIARIES AND ASSOCIATE COMPANIES ANNUAL REPORT 89 CONSTRUCCIONES Y PROYECTOS LOS MAITENES Name Construcciones y Proyectos Los Maitenes S.A. Kind of Company Private Company Tax N° 96,764,840-K Address Américo Vespucio Nº 0100, Pudahuel, Santiago Telephone (56 2) 601 0601 Fax (56 2) 601 0519 External Auditors Deloitte & Touche Total N° of Shares 295,100 Subscribed and paid capital (M$) 4,327,709 Holding of Enersis (direct and indirect) 55% Corporate Purpose a) The construction of all types of civil works, installations, buildings, housing, offices, etc., on its own or by third parties, on company or third party land that is developed or not. b) The sale or disposal of such works and structures by any emans necessary. c) The study and development of plans for such structures, including the engineering, architecture, financing, commercialization, etc. In the development of the company’s actions, the company could always act on its own or through third parties, be it directly or in participation with partnerships, communities, companies, and legal representatives of any kind, of which the company could even take on the administration. Board President Cristóbal Sánchez Board Victor Manuel Jarpa Andrés Salas Luis Felipe Edwards José Manuel Guzmán Principal Directors Chief Executive Officer Bernardo Küpfer COSTANERA Name Endesa Costanera S.A. Kind of Company Public Company Carlos Martin Alternate Directors Francisco Monteleone Fernando C. Antognazza Jorge Burlando Roberto Fagan Sergio Schmois Bernardo Iriberri Rodrigo Quesada Alfredo Mauricio Vítolo Vacant Principal Directors Chief Executive Officer José Miguel Granged Chief Administration and Finance Officer Fernando Carlos Boggini Chief Human Resources Officer Rodolfo Bettinsoli Chief Planning and Control Officer Jorge Burlando Chief Comercial Officer Sergio Schmois Chief Production Officer Francisco Monteleone Address Av. España 3301, Buenos Aires, Argentina. CTM Corporate Purpose The company’s objective is the production and commercialization of electric energy en masse. Paid Capital (M$) 80,496,677 Holding of Enersis (direct and indirect) 41,85% Board President Rafael Mateo Vice President Máximo Bomchil Board Julio Valbuena César F. Amuchástegui José María Hidalgo Miguel Ortiz Manuel Irarrázaval Eduardo J. Romero Name Compañía de Transmisión del Mercosur S.A. Kind of Company Public Company Address Bartolomé Mitre 797, Piso 13, Buenos Aires, Argentina. Corporate Purpose To provide high-tension electrical energy transport services, whether they be involving national or international electrical systems, in accordance with existing legislation, to which end the company could participate in national or international bids, turning it into a public service licensee in transporting national or international high-tension electrical energy and carrying out any and all duly related activities. Paid Capital (Ar. $) 14,176,000 Holding of Enersis (direct and indirect) 53.56% Board President José María Hidalgo Francisco Javier Bugallo Arturo Plácido Pappalardo Alternate Directors José Agustín Venegas Juan Carlos Blanco Roberto José Fagan Principal Directors Chief Executive Officer Francisco Javier Bugallo DISTRILEC INVERSORA Name Distrilec Inversora S.A. Kind of Company Foreign Private Company Address San José N° 140 (C1076AAD) Buenos Aires, Argentina Telephone (54 11) 4370 3700 Fax (54 11) 4381 0708 External Auditors Deloitte & Co. Sr. L. Subscribed and Paid Capital (Ar $) 497,612,021 Holding of Enersis (direct and indirect) 50.93% Investments as proportion Of Enersis’ Assets 1.80% Corporate Purpose (excerpt) The company’s sole objective is investing capital in established companies or ones that will be established, whose main purpose is electrical energy distribution or who participate directly or indirectly in companies that do so through carrying out all types of financial and investment activity, except for those provided by laws dealing with finance companies, the buying and selling of public and private documents, bonds, shares, negotiable obligations, granting of loans, and the deposit of its funds in any type of bank account. Board President Rafael López Vice President João Bezerra Board Daniel Casal Fermín Demonte Mariano Florencio Grondona Rigoberto Mejía Gabriel Marchione Ramiro Alfonsin (Chief Regional Planning and Controlling Officer) Gonzalo Vial Alternate Directors Pedro Eugenio Aramburu Manuel María Benites Santiago Daireaux Esteban Diez Mónica Diskin Roberto José Fagan Martín Mandarano Enrique Rosello Jorge Vugdelija Principal Directors Chief Executive Officer José María Hidalgo Martín-Mateos EDEGEL Name Edegel S.A.A. Kind of Company Public Company 90 enersis07 ANNUAL REPORT Address Av. Víctor Andrés Belaúnde N° 147, edificio real 4, piso 7, Centro Empresarial Camino Real, San Isidro, Lima, Perú. Corporate Purpose The company’s main objective is to dedicate itself, in general, to its own activities of creating electrical energy. The company could likewise carry out civil, industrial, and commercial activities and operations, and of any other kind that are related and conducive to its main corporate purpose. Paid Capital (M$) 421,624,209 Holding of Enersis (direct and indirect) 19.83% Board President Rafael Mateo Alcalá Vice President Fritz Du Bois Freund Juan Benabarre Benaiges Giora Almogy Reinaldo Llosa Barber Ricardo Harten Costa Alfonso Bustamante Canny Alternate Directors Julián Cabello Yong Arrate Gorostidi Aguirresarobe Francisco García Calderón Portugal Roberto Cornejo Spickernagel Alberto Triulzi Mora Jaime Zavala Costa Milagros Noriega Principal Executive Officer Carlos Alberto Luna Christian Schroder Romero Milagros Noriega Cerna Julián Cabello Yong Rosa María Flores-Aráoz EDELNOR Name Empresa de Distribución Eléctrica de Lima Norte S.A.A. Kind of Company Foreign Publicly Held Liability Stock Company Address Jr. Teniente Cesar López Rojas 201 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 Gris, Hernández y Asociados, S.C.- Deloitte & Touche Total N° of Shares 638,563,900 Subscribed and Paid Capital (Per. New Sun) 638,563,900 Holding of Enersis (direct and indirect) 33.54% Corporate Purpose (excerpt) To dedicate itself to its own activities of providing electrical energy distribution, transmission, and creation services. Board President Reynaldo Llosa Baber Vice President Ignacio Blanco Fernández Directors Ramiro Alfonsin Róger Espinosa Reyes Rafael López Rueda Vacant Guillermo Jesús Morales Valentín Ricardo Vega Llona Principal Directors Executive Officer Ignacio Blanco Fernández Chief Commercial Officer Carlos Solís Pino Chief Organization and Human Resources Manager Rocío Pachas Soto Chief Technical Officer Walter Sciutto Brattoli Chief Administration and Control Officer Vacant Chief Legal and Regulation Officer Luis Salem Hone Chief Communication Officer Pamela Gutierrez Chief Energy and Regulation Management Officer Alfonso Valle Cisneros EDESUR Name Empresa Distribuidora Sur S.A. Kind of Company Foreign Publicly Held Liability Stock Company Address San José 140 (1076), Capital Federal, Argentina Telephone (54 11) 4370 3700 Fax (54 11) 4381 0708 Web site www.edesur.com.ar E-mail emailservicio@edesur.com.ar External Auditors Deloitte & Co. S.R.L. Total N° of Shares 898,585,028 Subscribed and Paid Capital (Ar. $) 898,585,028 Holding of Enersis (direct and indirect) 65.39% Investments as proportion of Enersis assets 1.88% Corporate Purpose (excerpt) The distribution and commercialization of electric energy and related operations. Sustainable Development Officer José María Gottig Chief Communication Officer Daniel Martini Chief Internal Auditing Officer Jorge Lukaszczuk Legal Director Álvaro Estivariz Human Resources Director Héctor Ruiz Moreno Commercial Director Sandro Rollan Distribution Director Daniel Colombo Services Director Daniel Alasia Planning and Economic Control Director Juan Garade Administration and Finance Director Juan Verbitsky Board President Joao Becerra de Souza Vicepresident Rafael López Rueda Directors Rafael Arias Salgado Miguel Beruto Juan Pablo Larraín Medina Rigoberto Mejía Aravena Marcelo Silva Iribarne Gonzalo Vial Vial Jorge Volpe Alternate Directors Pedro Aramburu Alan Arntsen Manuel Benites Santiago Daireaux Roberto Fagan Daniel Casal Mariano Grondona Pablo Lepiane Principal Directors Executive Officer José María Hidalgo Martín-Mateos Chief Environmental Quality and ELECTROGAS Name Electrogas S.A. Kind of Company Private Company Tax N° 96,806,130-5 Address Evaristo Lillo Nº 78, piso 4, oficina Nº41, Santiago, Chile. Corporate Purpose The company’s objective is to provide natural gas and other fuel transport services on its own and through third parties, whereby it could construct, operate, and maintain gas pipelines, oil pipelines, poly-pipelines, and complementary installations. Paid Capital (M$) 10,566,940 SUBSIDIARIES AND ASSOCIATE COMPANIES ANNUAL REPORT 91 Holding of Enersis (direct and indirect) 25.49% Board President Felipe Aldunate Hederra Vice President Claudio Iglesis Guillard Pedro Gatica Kerr Enrique Donoso Rosa Herrera Martínez Alternate Directors Enzo Quezada Zapata Sergio Arévalo Jaime Fuenzalida Alessandri Jorge Bernardo Larraín Matte Ricardo Santibañez Principal Directors Executive Officer Carlos Andreani Luco EMGESA Name Emgesa S.A. E.S.P. Kind of Company Public Service Publicly Held Limited Liability Stock Company. Address Carrera 11 Nº 82-76, Piso 4 Santa Fe de Bogotá, D.C. Colombia. Corporate Purpose The company’s objective is the creation and commercialization of electric energy, as well as the carrying out of all activities that are related, similar, connected, complementary, and involved with the production of energy. Paid Capital (M$) 723,671,093 Holding of Enersis (direct and indirect) 16.12% Board President José Vargas Astrid Martínez Ortiz Rafael Errazuriz Luisa Fernanda Lafourie Lucio Rubio Díaz Enrique Borda Villegas Camilo Sandoval Sotelo Alternate Directors Renato Fernández Baeza Gustavo Gomez Henry Navarro Sánchez David Yanovich Martha Veleño Quintero Manuel Jiménez Castillo Principal Directors Executive Officer Lucio Rubio Díaz Andrés Caldas Rico Juan Manuel Pardo Javier Blanco Gustavo Gomez Fernando Gutiérrez Medina María Celina Restrepo Corporate Purpose The exploitation, production, transport, distribution, and buying and selling of energy and electric equipment, as well as the implementation of electrical installations. Principal Directors Executive Officer Leonel Martínez Garrido ENDESA ARGENTINA Name Endesa Argentina S.A. Kind of Company Public Company EMPRESA ELECTRICA DE COLINA Name Empresa Eléctrica de Colina Limitada Kind of Company Limited Partnership Tax N° 96.783.910-8 Address Suipacha 268, piso 12, Buenos Aires, Argentina. Corporate Purpose The company’s corporate purpose is to invest in businesses focused on the production, transport, distribution, and commercialization of electric energy, as well as to carry out financial transactions, with the exception of those reserved by law exclusively for banks. Address Chacabuco N°31, Colina, Santiago, Chile Paid Capital (M$) 104,677,212 Telephone (562) 844-4280 Fax: (562) 844-4490 External Auditors KPMG Auditores Consultores Ltda. Paid Capital (M$) 88,222 Holding of Enersis (direct and indirect) 99.09% Holding of Enersis (direct and indirect) 59.98% Board President José Miguel Granged Bruñen Vice President Néstor José Belgrano Director Francisco Martín Gutiérrez Alternate Directors José María Hidalgo Martín-Mateos Patricio Alberto Martín Marcelo A. Den Toom ENDESA BRASIL Name Endesa Brasil S.A. Kind of Company Public Company Address Praia do Flamengo, 200 – 16º andar –Rio de Janeiro, Brasil Telephone (55 21) 3607 9500 Fax (55 21) 3607 9555 Corporate Purpose The company’s corporate purpose is: (i) Participation in the share capital of other companies and corporations that act or will be set up to act directly or indirectly in any electrical segment sector, including service-providing companies to acting companies in such a sector, in Brazil or abroad, as a member, or stock holder, like as in legally permitted limits and, when the case is warranted, subject to the securing of mandatory regulation approval. (ii) The participation, individually or through a joint venture, company, consortium, or other similar forms of association, in bids, plans, and initiatives to carry out the services mentioned in the preceding article. External Auditors Deloitte Touche Tohmatsu Independent Auditors Total N° of Shares 170,877,378 Ordinary voting shares Subscribed and paid capital (Br. Real) 916,878,914 Holding of Enersis (direct and indirect) 53.57% Investments as proportion of Enersis assets 5.11% Board President Mario Fernando de Melo Santos Board Ignacio Antoñanzas Alvear (Enersis Chief Executive Officer) José María Calvo-Sotelo Ibañez Martín Antonio Basilio Pires de Carvalho e Albuquerque Rafael Mateo Alcalá Rafael López Rueda Principal Directors Executive Officer Marcelo Llévenes Rebolledo Vice-CEO Francisco Bugallo CFO and Investor Relations Luis Carlos Lorens Ortins Planning and Control Aurelio De Oliveira Institutional Relationships Eugenio Cabanes Legal Antonio Basilio Pires e Albuquerque Regulation Officer Jose Alves de Mello Human Resources Officer Carlos Naegale ENDESA BRASIL PARTICIPAçOES LIMITADA Name Endesa Brasil Participacoes Limitada Kind of Company Limited Partnership Address Praia do Flamengo 200, 12º andar, Rio de Janeiro, Brasil External Auditors Ernst & Young 92 enersis07 ANNUAL REPORT Subscribed and Paid Capital (Th.$) $ 387,568 E-mail comunicacion@endesa.cl Holding of Enersis (direct and indirect) 59.98% Secutiries Register Inscription N°114 Corporate Purpose The corporate purpose is comprised in other companies, as in being a member, share holder or quotist; the offering of services, including the management of owned and third- party goods related to the electric sector; and the detection and study of new markets and investment alternatives, particularly in the electric sector. Attorneys Francisco Javier Bugallo Sánchez Guilherme Gomes Lencastre Aurelio Ricardo Bustillo de Oliveira Manuel Rigoberto Herrera Vargas ENDESA CHILE Name Empresa Nacional de Electricidad S.A. Kind of Company Publicly Held Limited Liability Stock Company Tax N° 91.081.000-6 Address Santa Rosa N°76, Santiago, Chile Telephone (56 2) 630 9000 Fax (56 2) 635 4720 P.O. Box 1392, Santiago Web site www.endesa.cl External Auditors Ernst & Young Serv. Prof. de Auditoría Ltda. Total N° of Shares 8,201,754,580 Subscribed and paid capital (Th$) 1,222,877,948 Holding of Enersis (direct and indirect) 59.98% Investments as proportion of Enersis assets 43.62% Corporate Purpose (excerpt) The production and supply of electric energy, the sale of consultancy and engineering services in the country and abroad and the construction and exploitation of infrastructure construction. Board President Mario Valcarce Durán Vice President Carlos Torres Vila Directors Raimundo Valenzuela José María Calvo-Sotelo Rafael Español Navarro Enrique García José María Fernández Olano Jaime Estévez Valencia Leonidas Vial Echeverría Principal Directors Executive Officer Rafael Mateo Alcalá Chief Communications Officer Renato Fernández Baeza Legal Counsel Carlos Martín Vergara Chief Administration and Finance Officer Manuel Irarrázaval Aldunate Chief Human Resources Officer Juan Carlos Mundaca Álvarez Chief Planning and Control Officer Julio Valbuena Sánchez Chief Trading and Commercialization Officer José Venegas Maluenda Chief Energy Planning Officer Sebastián Fernández Cox Started on duty January 5, 2008 Chief Production and Transportation Officer Juan Benabarre Benaiges Chief Endesa Chile Generation Officer Claudio Iglesis Guillard ENDESA ECO Name Endesa Eco S.A. Kind of Company Private Company Tax N° 76.313.310-9 Address Santa Rosa 76 piso 12, Santiago, Chile External Auditors Ernst & Young Corporate Purpose The objective of this company is to promote and develop plans that have to do with renewable energy, such as with minihydro, eolian, geothermic, solar, biomass, and others; to identify and develop Mecanismo de Desarrollo Limpio (Clean Growth Mechanism) projects and act as receiver and promoter of the emission reduction certificates that are obtained in said projects. Paid Capital (M$) 626,121 Holding of Enersis (direct and indirect) 59.98% Board Juan Benabarre Benaiges Manuel Irarrázaval Aldunate Renato Fernández Baeza Principal Directors Executive Officer Wilfredo Jara Tirapegui ENDESA FORTALEZA Name CGTF -Central Geradora Termeléctrica Fortaleza S.A. Kind of Company Closed Capital Publicly Held Liability Stock Company Address Rodovia 422, Km 1 s/nº, Complexo Industrial e Portuário de Pecém Caucaia – Ceará, Brasil P.O. Box 61600-000 Telephone (55 85) 3464-4100 Fax (55 85) 3464-4197 E-mail arebello@endesabr.com.br External Auditors Ernst & Young Auditores Independentes S/S Corporate Purpose (excerpt) (i) To study, project, construct, and explore production, transmission, distribution, and commercialization systems of electrical energy that are awarded, permitted, or authorized by any legal title, such as the exercising of other activities associated with the offering of any services related to the above mentioned activities. (ii) The acquisition, obtaining, and exploration of any rights, concessions, and privileges related to the activities mentioned above, as well as the practice of all other business and activities necessary to attain its objective; and (iii) The participation in the share capital of other companies and corporations, as a share holder, member, or participant, whatever its objectives are. Total N° of Shares 151,935,778 Subscribed and paid capital (Th$) 32,113,007 Holding of Enersis (direct and indirect) 53.57% Board President Francisco Bugallo Sánchez Director Vice President Marcelo Llévenes Rebolledo Director Guilherme Gomes Lencastre Principal Directors Executive Officer Manuel Herrera Vargas Chief Human Resources and Administrative Officer Raimundo Câmara Filho Chief Financial Officer Guilherme Gomes Lencastre Chief Technical Officer José Pires Medeiros Chief Planning, Control and Accounting Officer Aurélio Bustillo de Oliveira SUBSIDIARIES AND ASSOCIATE COMPANIES ANNUAL REPORT 93 ENDESA MARKET PLACE Name Endesa Market Place en Liquidación S.A. Kind of Company Foreign Publicly Held Liability Stock Company Address Ribera de Loira, 60 CEP 28042, España Corporate Purpose The company’s objective is to carry out all business or activity in accordance with Cayman Islands legislation. In the case of business and activities referring to finances, the exceptions would be those that the law reserves for banks. It is also prohibited to do business with firms or people residing on Cayman Islands. Paid Capital (Th$) 4,969 Holding of Enersis (direct and indirect) 29.99% Telephone (34 91) 213 1000 Fax (34 91) 213 4199 External Auditors Deloitte, S.L. Subscribed and Paid Capital (euros) 6,743,800 Holding of Enersis (direct and indirect) 15.00% Corporate Purpose (excerpt) B2B and new technologies. Liquidator Ramón Cabezas Navas Principal Directors Liquidator Ramón Cabezas Navas ENERGEX Name Energex Co. Kind of Company Exent Company Address Caledonian House P.O. Box 265 G, George Town, Grand Cayman, Cayman Islands. Board Manuel Irarrázaval Daniel Bortnik Ricardo Rodriguez Horacio Reyser ENIGESA Name Endesa Inversiones Generales S.A. Kind of Company Private Company Tax N° 96,526,450-7 Address Santa Rosa 76, Santiago, Chile Corporate Purpose The company’s objective is the acquisition, sale, management, and exploitation, on its own account or through third parties, all types of furniture goods, properties, furniture values, and other business items; to carry out studies and consultancy; to offer all types of services; to participate in all types of investment and especially those related to the energy business; to participate in all types of companies and to carry out all operations, actions, and contracts that relate to the above mentioned objectives. Paid Capital (M$) 2,806,095 Holding of Enersis (direct and indirect) 59.96% Board Manuel Irarrázaval Aldunate Juan Carlos Mundaca Álvarez Jaime Montero Valenzuela Principal Directors Executive Officer Juan Carlos Mundaca Álvarez Board Manuel Irarrázaval Raúl Sotomayor Gonzalo Dulanto Alternate Directors Juan Benabarre Benaiges Claudio Iglesis Guillard Pedro Pablo Errázuriz Eduardo Ojeda Principal Directors Executive Officer Rudolf Araneda Kauert GASATACAMA Name Gasatacama S.A. Kind of Company Private Company Tax N° 96,830,980-3 Address Isidora Goyenechea 3365, Piso 8, Santiago, Chile Corporate Purpose a) The administration and management of the Gasoducto Atacama Chile Limitada corporations, Gasoducto Atacama Argentina Limitada, Gasatacama Generación Limitada, and the other companies that the members agree on; b) The investment of its resources, on its own account or through third parties, in all types of furniture goods or properties, physical or nonphysical, securities, stocks and business items. Paid Capital (Th$) 144,835,528 Holding of Enersis (direct and indirect) 29.99% Board President Rafael Mateo Alcalá GASATACAMA GENERACIÓN Name Gasatacama Generación S.A. Kind of Company Private Company Tax N° 78,932,860-9 Address Isidora Goyenechea 3365, Piso 8, Santiago, Chile. Corporate Purpose a) To exploit the production, transmission, purchasing, distribution, and sales of electric energy or of any other type. b) The purchasing, extraction, exploitation, processing, distribution, commercialization, and sale of solid, liquid, and gas fuels. c) The sale and offering of engineering services; d) The securing, transfer, purchasing, renting, obligation, and exploitation, by any means, of the concessions that the general law of electrical services, maritime concessions, and water (of any source) exploitation rights refers to. e) To invest in all types of goods, physical or non-physical, furniture or properties; f) The organization and setting-up of any type of company, whose objectives are related or involved with energy in any of its forms or that mainly supply electric energy or that have to do with any of the activities defined above. Paid Capital (Th$) 60,072,828 Holding of Enersis (direct and indirect) 29.99% Board President Rafael Mateo Alcalá Board Manuel Irarrázaval Raúl Sotomayor Gonzalo Dulanto Alternate Directors Juan Benabarre Benaiges Claudio Iglesis Guillard Pedro Pablo Errázuriz Eduardo Ojeda Principal Directors Executive Officer Rudolf Araneda Kauert GASODUCTO ATACAMA ARGENTINA Name Gasoducto Atacama Argentina S.A. Kind of Company Private Company Tax N° 78,952,429-3 Address Isidora Goyenechea 3365, Piso 8, Las Condes, Santiago, Chile. Corporate Purpose The company’s objective is the transport of natural gas on its own account, through outside sources or in conjunction with third parties within Chilean territory or in other countries, including the construction, emplacement, and exploitation of gas pipelines and other activities related directly or indirectly to said objective. This company established an agency in Argentina under the name; “Gasoducto Cuenca Noroeste 94 enersis07 ANNUAL REPORT Limitada Sucursal Argentina”, whose purpose is the implementation of the gas pipeline between the locality of Cornejo in the Salta Province and the Argentine-Chilean border near the Jama Pass in the 2nd. Region. Paid Capital (Th$) 103,439,144 Holding of Enersis (direct and indirect) 29.99% Board Pedro de la Sotta Luis Vergara Rafael Zamorano Executive Officer Rudolf Araneda Kauert GASODUCTO ATACAMA CHILE Name Gasoducto Atacama Chile S.A. Kind of Company Private Company Tax N° 78,882,820-9 Address Isidora Goyenechea 3365, Piso 8, Las Condes, Santiago, Chile. Corporate Purpose The company’s objective is the transport of natural gas on its own, or in conjunction with third parties within Chilean territory or in other countries, including the construction and emplacement of gas pipelines and other activities related directly or indirectly with said objective. Paid Capital (Th$) 31,864,337 Board President Rafael Mateo Alcalá Manuel Irarrázaval Raúl Sotomayor Gonzalo Dulanto Alternate Directors Juan Benabarre Benaiges Claudio Iglesis Guillard Pedro Pablo Errázuriz Eduardo Ojeda Principal Board Executive Officer Rudolf Araneda Kauert GASODUCTO TALTAL Name Gasoducto Taltal S.A. Kind of Company Private Company Tax N° 77,032,280-4 Address Santa Rosa 76, Santiago, Chile Corporate Purpose The company’s objective is to transport, commercialize, and distribute natural gas on its own, through outside sources, or in conjunction with third parties, within Chilean territory, especially between the localities of Mejillones and Paposo in the 2nd. Region , including the construction, emplacement, and exploitation of gas pipelines and other activities related directly or indirectly with said objective. Paid Capital (Th$) 11,674,291 Holding of Enersis (direct and indirect) 29.99% Holding of Enersis (direct and indirect) 29.99% Board Rudolf Araneda Kauert Pedro de La Sotta Sánchez Rafael Zamorano Chaparro Luis Vergara Alternate Board Luis Cerda Ahumada Alejandro Sáez Carreño Gustavo Venegas Castro Verónica Cortéz Principal Board Executive Officer Rudolf Araneda GENERANDES PERÚ Name Generandes Perú S.A. Kind of Company Public Company Address Av. Víctor Andrés Belaúnde N°147, Torre Real, Piso 7, San Isidro, Lima, Perú. Corporate Purpose The company’s objective is to carry out activities related to the production of electric energy, directly and/or through companies set up for this purpose. Paid Capital (Th$) 211,203,411 Holding of Enersis (direct and indirect) 35.77% Board President Rafael Mateo Alcalá Vice President Javier García Burgos Benfield Juan Benabarre Benaiges Mario Valcarce Durán José Chueca Romero Ignacio Blanco Fernández Giora Almogy Alberto Triulzi Mora Alternate Board Jullian Cabello Yong Juan Antonio Rozas Mori José María Hidalgo Martin Mateos Fritz Du Bois Freund Miguel Alberto López Milagros Noriega Cerna Roberto Cornejo Spickernagel Guillermo Lozada Pozo Principal Board Executive Officer Carlos Luna Cabrera Milagros Noriega Cerna Chief Finance Officer GNL CHILE Name GNL Chile S.A. Kind of Company Private Company Tax N° 76,418,940-K Address Isidora Goyenechea 3477, piso 19, Las Condes, Santiago Corporate Purpose The company will have as its sole objective the provision of management, administration, logistical, and coordination services as a contractor or agent of the group of companies that promotes a plan to secure the supply of liquid natural gas, its re-gasification, and delivery in Chile’s central area. Paid Capital (Th$) $12,107 Holding of Enersis (direct and indirect) 19.99% Board President Enrique Dávila Alveal Rafael Mateo Alcalá Eduardo Morandé Montt Alternate Board Sergio Arévalo Claudio Iglesis Guillard Gonzalo Palacios Vásquez Principal Board Executive Officer Antonio Bacigalupo Gittins GNL QUINTERO Name GNL Quintero S.A. Kind of Company Private Company Tax N° 76,788,080-4 Address Avenida Apoquindo 3.500, piso 6, Las Condes, Santiago, Chile Corporate Purpose Development, financing, designing and engineer, supply, construction, starting. tests, conclusion, purchase, operation and maintenance of a liquefied gas regasification terminal (“GNL”) and its expansions (if any) and any other activity conducing or relative to said purpose including, but not limited to, managing and direction of all the commercial agreements required to the LNG reception (or delivery to customers), LNG regasification, distribution of regasificated LNG to the respective distribution point and sale of services, storage capacity, processing and regasification of Regasification Terminal and its expansions, if any. The Company will have the faculty of Realize any kind of act or contract That may be necessary, useful or convenient in complying with said purpose. Paid Capital (Th$) 8,685,870 Holding of Enersis (direct and indirect) 12.00% SUBSIDIARIES AND ASSOCIATE COMPANIES ANNUAL REPORT 95 Board Ricky Lynn Waddell Carlos Quintana Enrique Dávila Alveal Rafael Mateo Alcalá Eduardo Morandé Montt Alternate Board Graham Cockroft Elizabeth Grace Spomer Sergio Arévalo Espinoza Claudio Iglesis Guillard Francisco Gazmuri Schleyer Principal Executives Chief Executive Officer Antonio Bacigalupo Gittins HIDROINVEST Name Hidroinvest S.A. Kind of Company Public Company Address Av. España 3301, Buenos Aires; Argentina. Corporate Purpose The company’s objective is to acquire and maintain a principal share in Hidroeléctrica El Chocón S.A. Paid Capital (Th$) 25,924,853 Holding of Enersis (direct and indirect) 57.64% Board President Rafael Mateo Alcalá Vice President José Miguel Granged Board Miguel Ortiz Fuentes Fernando Claudio Antognazza Julio Valbuena Sánchez Carlos Martín José Domingo Montelcone Roberto José Fagan Alternate Board Daniel Garrido José María Hidalgo Martín-Mateos Juan Carlos Blanco Manuel Irarrázaval Jorge Burlando Rodrigo Quezada Vacant Vacant INGENDESA Name Empresa de Ingeniería Ingendesa S.A. Kind of Company Private Company Tax N° 96,588,800-4 Address Santa Rosa 76, Santiago, Chile Corporate Purpose The company’s objective is the provision of engineering services, job inspection, receiving and inspection of equipment and materials, a laboratory, industrial studies, business management in different fields, environment consultancy, including the carrying out of environmental impact studies, and consulting services in general in every field, in the country as well as abroad, be it directly, associated with or through third parties, by which the company could form, or incorporate itself with other companies, corporations, foundations, or consortiums of any kind. Paid Capital (Th$) 2,188,692 Holding of Enersis (direct and indirect) 59.98% Board President Juan Benabarre Benaiges Rafael de Cea Chicano Aníbal Bascuñán Bascuñán Principal Board Executive Officer Rodrigo Alcaíno Mardones Holding of Enersis (direct and indirect) 29.99% Representatives Rodrigo Alcaíno Mardones Alejandro Santolaya de Pablo Alternate Representatives Cristian Araneda Valdivieso Elías Arce Cyr Julio Montero Montegu Fernando Orellana Welch INGENDESA BRASIL Name Ingendesa do Brasil Ltda. Kind of Company Limited Partnership. Address Av. Rio Branco 115, pavimento 10, sala 1005, Centro, Río de Janeiro, Brasil. Corporate Purpose The corporate purpose comprises the provision of engineering services, studies, plans, technical consultancy, administration, work control and supervision, inspection and receiving of materials and equipment, skills and laboratory services, as well as other services that legal authorities permit in practice regarding engineering, architecture, agronomy, geology, and meteorology, in all of its specializations, in the country and abroad, directly or indirectly, whereby the company could participate in companies or consortiums of any kind. Paid Capital (Th$) 139,179 Holding of Enersis (direct and indirect) 59.98% INGENDESA MINMETAL Name Consorcio Ingendesa–Minmetal Ltda. Kind of Company Limited Partnership Tax N° 77,573,910-k Address Santa Rosa N° 76, Santiago, Chile Corporate Purpose The corporate purpose comprises the provision of engineering services which include the projection, planning and carrying out of engineering plans and studies, consultancy services, the granting of technical information and assistance, and the administration, inspection, and development of works and projects. The company could also carry out on its own account, or through outside sources, all types of works, set up and initiate all types of establishments on its own account or through third parties, industrial or non-industrial, commercializing for itself or third parties the goods and/ or services produced. In general, the company could develop all the activities related directly or indirectly with the operations mentioned, all types of commercial activity, including the buying and selling of furniture, imports and exports, and all other business that members agree on that relate to the activities already mentioned. Apart from what has already been stated, a special objective of the company is the awarding and carrying out of the construction and engineering jobs that constitute the contract named LD-14.1 Technical and Administrative Consultancy regarding the Fiscal Inspection of the Construction Contract LD-4.1 of the Laja Project – Diguillín. Attorney General Director Sergio Campos Ribeiro Paid Capital (Th$) 2,000 INGENDESA - ARA Name Sociedad Consorcio Ingendesa - Ara Ltda. Kind of Company Limited Partnership Tax N° 76,197,570-6 Address Santa Rosa 76 Piso 10, Santiago, Chile Corporate Purpose The provision of engineering services which comprise the projection, planning and carrying out of engineering plans and studies, consultancy offices, granting of technical information and assistance, and work and design development. Additionally, the company offers on its own account, or through outside sources, all types of works, the setting up and initiating of all types of establishments for itself or third parties, industrial or non-industrial, commercializing for itself or third parties the goods and services produced. In general, to develop activities related directly or indirectly with the operations mentioned, all types of commercial activity, including the buying and selling of furniture, exports and imports, and all business that the members agree on and that are related to the activities indicated. Besides what has been mentioned, a special objective of the company is the awarding and carrying out of the Fiscal Inspection Consultancy Contract and the Concession Contract Justice Center of Santiago. Paid Capital (Th$) 1,000 96 enersis07 ANNUAL REPORT Holding of Enersis (direct and indirect) 29.99% Investments as proportion of Enersis assets 1.11% public energy utility company, or any other company which in turn, invest in public energy utility companies. Subscribed and Paid Capital (Per. New Sun) 334,150,505 Address Apoquindo 3076, Oficina 402, Las Condes, Santiago, Chile Representatives Rodrigo Muñoz Pereira Rodrigo Alcaíno Mardones Alternate Representatives Fernando Orellana Welch Osvaldo Dinner Reich Carlos Freire Canto INMOBILIARIA MANSO DE VELASCO Name Inmobiliaria Manso de Velasco Limitada. Kind of Company Limited Partnership. Tax N° 79,913,810-7 Attorneys Join Together Cristóbal Sánchez Andrés Salas Principal Executive Officer Andrés Salas Legal Asessor Alfonso Salgado Chief Real Estate Development Officer Gustavo Cardemil Chief ENEA Project Officer Bernardo Küpfer INVERSIONES CODENSA S.A Name Inversiones Codensa S.A. Address Santa Rosa N° 76, Piso 9, Santiago- Chile. Kind of Company Public Company Board Lucio Rubio Andrés Caldas Mario Trujillo Alternate Directors Margarita Olano Álvaro Francisco Camacho Fabiola Leal Procedural Representative José Alejandro Inostroza First Aletrnate Procedural Representative Roberto Ospina Second Alternate Procedural Representative Luis Fermín Larumbe INVERSIONES DISTRILIMA Name Inversiones Distrilima S.A. Telephone (56 2) 378 4700 Fax (56 2) 378 4702 E-mail rch@mvelasco.enersis.cl External Auditors Deloitte & Touche Corporate Purpose (excerpt) The acquisition, transfer, commercialization, and exploitation of real estate and an investment company. Subscribed and paid capital (Th$) 25,916,800 Holding of Enersis (direct and indirect) 100% Address Carrera 13 A N° 93-66, Bogotá, Colombia Kind of Company Foreign Publicly Held Liability Stock Company Telephone (57 1) 601 6060 Fax (57 1) 601 5917 External Auditors Deloitte & Touche Ltda. Subscribed and paid shares 1,000 Subscribed and paid capital (Col$) 10.000.000 Holding of Enersis (direct and indirect) 21.67% Address Jr. Teniente César López Rojas Nº 201, Maranga, San Miguel, Lima, Perú Telephone (51 1) 561 1604 Fax (51 1) 452 3007 P.O. Box 32, Lima, Perú External Auditors Gris y Hernández y Asociados S.A.C. – Deloitte & Touche Corporate Purpose (excerpt) Investment in energy utility activities, especially in shares purchases of any Total N° of Shares 334,150,505 Holding of Enersis (direct and indirect) 55.90 % Investments as proportion on Enersis assets 0.52% Corporate Purpose (excerpt) The company’s objective is to make investments in general, especially those that are involving the distribution and production of electric energy. Board President Ignacio Blanco Vice President Reynaldo Llosa Board Rafael López Ramiro Alfonsin (Chief Planning and Audit Officer) Vacant Alternate Directors Manuel Munoz Ricardo Camezzana Fernando Fort Walter Néstor Sciutto Zoila Patricia Mascaró Principal Directors Executive Officer Ignacio Blanco INVERSIONES ELECTROGAS Name Inversiones Electrogas S.A. Kind of Company Private Company Tax N° 96,889,570-2 Corporate Purpose The company’s objective is to buy, sell, invest in and keep stocks in the Electrogas S.A. closed public corporation. Paid Capital (Th$) 12,117,936 Holding of Enersis (direct and indirect) 25.49% Board President Felipe Aldunate Vice President Claudio Iglesis Directors Pedro Gatica Enrique Donoso Rosa Herrera Alternate Directors Enzo Quezada Sergio Arévalo Jaime Fuenzalida Jorge Bernardo Larraín Ricardo Santibáñez Principal Directors Executive Officer Carlos Andreani INVERSIONES ENDESA NORTE Name Inversiones Endesa Norte S.A. Kind of Company Private Company Tax N° 96,887,060-2 Address Santa Rosa 76, Santiago, Chile SUBSIDIARIES AND ASSOCIATE COMPANIES ANNUAL REPORT 97 Corporate Purpose The company’s objective is to make investments in energy projects in the north of Chile that are connected with Gasoducto Atacama Compañía Ltda., Gasoducto Cuenca Noroeste Ltda., and Noroeste Pacífico Generación de Energía Ltda.; as well as in Administradora Proyecto Atacama S.A. Paid Capital (Th$) 85,006,099 all of its forms; ii) The production, transmission, purchasing, distribution, and sale of energy; iii) The financing of the activities indicated in i) and ii) a precedent developed by related third parties; B) The receipt and investment of the goods that are invested. The corporate purpose comprises all lucrative activities related to the ones already mentioned and other business that the members agree upon. Holding of Enersis (direct and indirect) 59.98% Paid Capital (Th$) 165,722,352 Board President Rafael Mateo Directors Manuel Irarrázaval Daniel Bortnick Alternate Directors Claudio Iglesis Juan Benabarre Vacant Principal Directors Chief Executive Officer Juan Benabarre INVERSIONES GASATACAMA HOLDING Name Inversiones Gasatacama Holding Limitada Kind of Company Limited Partnership Tax N° 76,014,570-K Address Santiago, Chile Holding of Enersis (direct and indirect) 29.99% Board Directors Rafael Mateo Manuel Irarrazaval Raúl Sotomayor Gonzalo Dulanto Alternate Directors Juan Benabarre Claudio Iglesis Pedro Pablo Errázuriz Eduardo Ojea Principal Directors Chief Executive Officer Rudolf Araneda INVERSORA CODENSA LTDA. U Name Inversora Codensa Ltda. U Kind of Company Limited Unipersonal Partnership Address Carrera 13 A N° 93-66, Bogotá, Colombia Corporate Purpose A) The direct or indirect participation through any type of association in companies whose objectives include one or more of the following activities: i) The transport of natural gas in Phone (57 1) 601 6060 Fax (57 1) 601 5917 External Auditors This partnership does not have auditors, since there is not legal requirement for it. Total Quotes 5,000 Subscribed and paid capital (Col. $) 5,000,000 Holding of Enersis (direct and indirect) 21.73% Corporate Purpose Investment in energy utility activities, especially in shares purchases of any public energy utility company, or any other company which in turn, invest in public energy utility companies. Procedural Representative José Alejandro Inostroza First Alternate Procedural Representative Roberto Ospina Second Alternate Procedural Representative Luis Fermín Larumbe INVESTLUZ Name Investluz S.A. Kind of Company Foreign Publicly Held Liability Stock Company Address Av. Barão de Studart N° 2917, Bairro Dionísio Torres Fortaleza, Ceará, Brasil. Telephone (55 85) 3216 1350 Fax (55 85) 3216 1247 External Auditors Deloitte & Touche Tohmatsu Total N° of Shares 100,461,895,427 Subscribed and paid capital (Br. Real) 954,618,954 Holding of Enersis (direct and indirect) 59.51% Corporate Purpose Contact Center, Outsorcing, events organization, informatic services, collections, personal assets trading, and investments. Corporate Purpose (excerpt) To participate in the share capital of the Companhia Energetica do Ceará and othercompanies in Brazil and abroad as a member or stock holder. Board Non Directors Society administrated by an executives Committee which President is Abel Alves. In addition, said Committee its comprised by: Teobaldo Cavalcante Silvia Pereira José Renato Ferreira Luciano Alberto Galasso KONECTA CHILE Name Konecta Chile S.A. Kind of Company Private Company Tax N° Address Miraflores 383, Piso 26, Santiago, Chile Phone (56 2) 447 8687 Fax (56 2) 4478688 Web Site www.grupokonecta.com E-mail Agarcia@agslink.com.br Total N° of Subscribed and Paid Shares 1,000 Paid Capital (Th$) 1,000 Board President José Ignacio González Directors Jesús Vidal Rafael Miguel Barroso Leonardo Covalschi María Agustina Letelier Juan Seco Principal Directors Chief Executive Officer Alejandra García LUZ ANDES Name Luz Andes Limitada Kind of Company Limited Partnership Tax N° 96,800,460-3 Address Santa Rosa 76 Piso 5, Santiago, Chile Telephone (562) 634 6310 Fax (562) 634 6370 External Auditors KPMG Auditores Consultores Ltda. Paid Capital (pesos) 1,224,348 Holding of Enersis (direct and indirect) 99.09% Corporate Purpose The distribution and sale of electric energy. The exploitation, production, transport, distribution, and buying 98 enersis07 ANNUAL REPORT and selling of energy and electrical equipment, and the implementation of electrical installations. (if permitted), to participate in other electric-sector companies as a member or stock holder. Principal Directors Chief Executive Officer Claudio Inzunza Board President Marcelo Llévenes LUZ DE RIO Name Luz de Río Limitada Kind of Company Limited Partnership Directors Financial Director Abel Alves Institutional Relationships Director Eugenio Cabanes Legal Director Ana Cláudia Gonçalves Address Praça Leoni Ramos, nº 01, bloco 1, Planta 7 (parte) Niterói, Rio de Janeiro PANGUE Name Empresa Eléctrica Pangue S.A. Telephone (55 21) 2613 7071 Fax (55 21) 2613 7153 P.O. Box 24,210-205 E-mail lbettencourt@ampla.com Not applicable Securities Register Inscription External Auditors Not Audited Total Number of Quotes: 755,000 Subscribed and paid capital (Br. Real) 755,000 Holding of Enersis (direct and indirect) 99.48% Corporate Purpose (excerpt) To develop activities related to the electric sector, above all the importation, transmission, production, distribution, commercialization, and exploration of electric energy, and, Kind of Company Private Company Tax N° 96,589,170-6. Address Santa Rosa 76, Santiago, Chile. Corporate Purpose The company’s corporate purpose is to exploit the production, transport, distribution, and supply of electric energy of the Pangue head office of the Biobío river basin. Paid Capital (Th$) 83,601,007 Holding of Enersis (direct and indirect) 56.97% Board President Claudio Iglesis Vice President Alan Fischer Director Alejandro García Principal Directors Chief Executive Officer Lionel Roa PEHUENCHE Name Empresa Eléctrica Pehuenche S.A. Kind of Company Publicly Held Limited Liability Stock Company Tax N° 96,504,980-0 Address Santa Rosa 76, Santiago, Chile Corporate Purpose The company’s objective is the production, transport, distribution, and supply of electric energy, by which the company could acquire and enjoy the respective favors and concessions. Paid Capital (Th$) 183,947,677 Holding of Enersis (direct and indirect) 55.57% Board President Claudio Iglesis Vice President Alan Fischer Directors Pedro Gatica Enrique Lozán Osvaldo Muñoz Alejandro García Daniel Bortnik Chief Executive Officer Lucio Castro Márquez PROGAS Name Progas S.A. Kind of Company Limited Partnership Tax N° 77,625,850-4 Address Isidora Goyenechea 3356, 8° Piso, Santiago, Chile Corporate Purpose To develop the following lines of business in the first, second and third regions of the country: a) The acquisition, production, storage, transport, distribution, transformation, and commercialization of natural gas; b) The acquisition, production, storage, transport, distribution, transformation, and commercialization of other oil derivatives and other fuels in general; c) The provision of services, fabrication, commercialization of equipment and materials and the implementation of jobs related to the aforementioned objectives or that are necessary for their implementation and development. d) All other necessary activities or activities that are conducive to the performance of the aforementioned objectives. Paid Capital (Th$) 946 Holding of Enersis (direct and indirect) 29.99% Board Rudolf Araneda Luis Cerda Pedro de La Sotta Principal Directors Chief Executive Officer Alejandro Sáez SACME Name Sacme S.A. Kind of Company Private Company Address Avda. España 3251 – Ciudad Autónoma de Buenos Aires, Argentina Telephone (54 11) 4361 5107 Fax (54 11) 4307 0701 External Auditors Estudio Alonso Hidalgo & Asociados Total N° of Shares 12,000 Subscribed and Paid Capital (Arg. $) 12,000 Holding of Enersis (direct and indirect) 32.69% Corporate Purpose (excerpt) To carry out the management, supervision, and control of the production, transmission, and subtransmission system of electric energy for the Federal Capital and Greater Buenos Aires and the interconnections with the Argentine Interconection System (AIS). To represent Edenor S.A. and Edesur S.A. companies in the operational management before the Wholesale Electricity Market Administration Company (CAMMESA). In general, to carry out all types of activities that allow its management to adequately develop, in virtue of the fulfilment distribution and commercialization services of electric energy for the concessionary companies in the Capital Federal and Greater Buenos Aires, all in accordance with what is stipulated in the Public International Tender for the sale of class A stocks from Edenor S.A. and Edesur S.A. and its applied regulations. Board President Mario Nicolás Covacich Vice President Daniel Héctor Colombo Directors Eduardo Maggi Leandro Ostuni Executive Officer Osvaldo Ernesto Rolando Address Miraflores 383, Of. 1004, piso 10, Santiago, Chile. Address Av. España 3301, Buenos Aires, Argentina Telephone (54 11) 4307 3040 Fax (54 11) 4307 1547 External Auditors Deloitte Total N° of Shares 19,874,798 SUBSIDIARIES AND ASSOCIATE COMPANIES ANNUAL REPORT 99 Fax (56 2) 397 6601 Web site www.synapsis-it.com E-mail Synapsis@synapsis-it.com External Auditors Deloitte & Touche Soc. de Auditores y Consultores Ltda. Aldo Monje Roma Human Resources Chile Dario Marambio Molina SAP Solutions Chile Rocio Niño Guerra Businesses Applications Chile Luis Campos Rivas Technica and Autom. Systems Chile Aldo Cortes Díaz Outsourcing Chile Juan Miquel Durán Subscribed and paid capital (Th$) 3,943,580 SYNAPSIS ARGENTINA Subscribed and Paid Capital (Ar. $) 19,874,798 Holding of Enersis (direct and indirect) 100% Holding of Enersis (direct and indirect) 59.98% Corporate Purpose (excerpt) To dedicate habitually, on its own charge or In the name of third parties, to wholesale purchase and sales of energy produced by third parties and to be consumed by third parties. Also, the company could hold participations on electricity generation companies. To comply its purposes, the company has full legal capacity, being able to purchase rights, incurrence of liabilities and exercise all the actions that are not forbidden by the laws or this statute. SYNAPSIS Name Synapsis Soluciones y Servicios IT Limitada Kind of Company Limited Partnership Tax N° 96,529,420-1 Address Miraflores 383 Piso 27, Santiago Telephone (56 2) 397 6600 Investments as proportion in Enersis assets 0.32% Corporate Purpose (excerpt) The supply and commercialization of services and equipment related to the computing, data processing, telecommunications systems, and control systems for public service and other national and international companies. Attorneys and Principal Directors Join Together Attorneys: Cristóbal Sánchez Leonardo Covalschi Alternate Eduardo López Raúl Mella Principal Directors Executive Officer Leonardo Covalschi Administration, Finance and Human Resources Raúl Mella Communication and Marketing Jorge Orozco Outsourcing Antonio Bravo Applications Fernando Mayorano General Manager Chile María Agustina Letelier Reyes Fiance and Administration Chile Name Synapsis Argentina S.R.L. Kind of Company Limited Partnership Address Azopardo 1335, e/ Juan de Garay y Cochabamba, Cod. Postal 1064, Capital Federal, Buenos Aires, Argentina Telephone (54 11) 4021 8300 Fax (54 11) 4021 8300 Securities Register Inscription Subscribed at General Justice Inspection, dated November 10, 1992, under N°10842, Book 112, Section A of Public Companies. The transformation into a limited partnership was registered at the General Justice Inspection, dated September 3, 202, under N°4839, Book 116, of SRL. External Auditors Deloitte & Co SRL Total N° of Shares (quotas) 466,129 Subscribed and Paid Capital (Arg. $) 466,129 Holding of Enersis (direct and indirect) 100% SAN ISIDRO Name Compañía Eléctrica San Isidro S.A. Kind of Company Private Company Tax N° 96,783,220-0. Address Santa Rosa 76, Santiago, Chile. Corporate Purpose The company’s corporate purpose is the production, transport, distribution, and supply of electric energy. Paid Capital (Th$) 35,818,094 Holding of Enersis (direct and indirect) 59.98% Board President Alejandro García Vice President Alan Fischer Directors Claudio Iglesis Pedro Gatica Ricardo Santibáñez Alternate Directors Rodrigo Naranjo Carlo Carvallo Osvaldo Muñoz Claudio Betti Enrique Lozán Principal Directors Executive Officer Claudio Iglesis SISTEMAS SEC Name Sistema SEC S.A. Kind of Company Private Company Tax N° 99,584,600-4. Corporate Purpose To develop the engineering, supply, setting up, testing, installation and maintenance of signalling, electrification, and communication systems, for the areas of Alameda – Chillán. Hualqui – Talcahuano, and Concepción – Lomas Coloradas, which implies the development of all activities and provision of all services that are the objectives of the Provision of Signalling, Electrification, and Communication Systems Contract, in the process of a public bidding which was awarded by the Empresa de Ferrocarriles del Estado (State Railroad Company), as well as the activities and services permitted by said contract. Paid Capital (Th$) 2,110,431 Holding of Enersis (direct and indirect) 49.00% Board President Cristóbal Sanchez Directors Ángel Aguilar Klaus Winkler Jaime Godoy Francisco Fernández Principal Directors Chief Executive Officer Jaime Pino Chief Technical Officer Sergio Zúñiga Chief Production Officer Gerardo Zecca SOUTHERN CONE POWER ARGENTINA Name Southern Cone Power Argentina S.A. Kind of Company Public Company Subscribed and Paid Capital (Col. $) 238,446,000 Securities Register Inscription Does not participate in stock market 100 enersis07 ANNUAL REPORT Corporate Purpose (excerpt) The company’s principal objective is to provide services related to computing, data processing, and other telecommunications and control computing services, as well as to provide training in related activities with services provided, among others. Principal Directors Cristóbal Sánchez Leonardo Covalschi Executive Officer Fernando Mayorano Alternate Executive Officer Mariano Grondona SYNAPSIS BRASIL Name Synapsis Brasil Limitada Kind of Company Limited Partnership Address Av. das Américas 3434, Bloco 2, Sala 403, Barra da Tijuca, Rio Janeiro, Brasil - Cep: 22640-102 Telephone (55 21) 3431-3850 Fax (55 21) 3431-3851 sales, importation, exportation, representation, consignment, and distribution of all types of goods, mobile or nonmobile, connected with the object described in the topics mentioned; and the participation in other companies, civil or commercial, national or foreign, that operate in the computing, electric energy, or, that still operate in the administration and/ or public service operations of electric energy, telecommunications, water for domestic or industrial and sanitary sewage use, as a share holder, quotist, or member; consortiums and companies in participation accounts. Board President Carlos Alberto Acero Principal Directors Carlos Alberto Acero (Chief Executive Officer Brazil) Administration and Finance Brazil Jacqueline Gómez Chief Human Resources Officer Marcia Caporazzo Trading Brazil José Roberto Galdino Business Application Brazil Alexandre Maiotto Outsourcing Brazil Marcelo Picchi SYNAPSIS COLOMBIA Holding of Enersis (direct and indirect) 100% Corporate Purpose To supply and commercialize services and equipment related to computing and data processing for public service and other national or international companies. Administration President Leonardo Covalschi Alternate President Edgar Enrique Martínez Procedural Representative Robin Barquin Alternate Procedural Representative Ana Patricia Delgado Chief Executive Officer Colombia Robin Barquin Administration and Finance Colombia Edgar Enrique Martínez Human Resources Colombia Sonia Rodríguez Trading Colombia Jesús Vallejo Sales Colombia Miguel Melo Business Applications Colombia Patricia Delgado Outsourcing Colombia Eduardo Ruiz External Auditors Deloitte Touche Tohmatsu Name Synapsis Colombia Limitada Subscribed and paid capital (Br. Real) 4,241,890 Kind of Company Limited Partnership SYNAPSIS PERU Name Synapsis del Peru S.R.L Holding of Enersis (direct and indirect) 100% Corporate Purpose The providing of consultancy services and technical assistance related to the computing and data processing sector for Brazilian or foreign companies; computing programs and systems development; the commercialization of computing equipment and data processing; the fabrication, purchasing, Address Carrera 11 No. 82-76 Piso 6° Bogotá, D.C. Kind of Company Limited Partnership Telephone (57-1) 607 6000 Fax (57 1) 636 4606 External Auditors Deloitte Colombia Ltda. Address Jr. Teniente César López Rojas 201, Piso 10, Maranga, San Miguel, Lima, Perú Telephone (05 11) 561 0386 Fax (05 11) 517 1232 External Auditors Gris y Hernández y Asociados S.AC. – Deloitte & Touche. Total N° of Shares 609,200 Subscribed and Paid Capital (Per. New Sun) 609,200 Holding of Enersis (direct and indirect) 100% Corporate Purpose The company’s objective is to provide services related to computing, data processing, and other telecommunications and control computing systems, as well as provide training in related activities with services provided, among others. Principal Directors Executive Officer Peru Claudio Escudero Human Resources and Administration Peru Jessenia Quevedo Business Applications Peru Eduardo Bedoya Sales Peru Mario Nieto Ousourcing Peru Pedro Luna Quality and Process Control Carlos Castillo New Businesses José Silva TERMOELECTRICA JOSE DE SAN MARTIN Name Termoelectrica Jose de San Martin S.A. Kind of Company Public Company Address Suipacha 1111 – Piso 18° - Buenos Aires, Argentina Corporate Purpose The company’s objective is the production of electric energy and its mass commercialization y, particularly, the managing of the equipment purchasing, construction, operation, and maintenance of a thermal plant en compliance with the “Definite agreement for the management and project operation for the readjustment of the MEM in the framework of resolution SE Nº 1427/2004”, approved by resolution SE Nº 1193/2005 (the “Agreement”). For these purposes the company could carry out all complementary and subsidiary activities that involve its corporate purpose, having full legal capacity to acquire rights and to enter into obligations and exercise any activity that is not prohibited by law or these statutes. Subscribed and paid capital (M$) 79,287 Holding of Enersis (direct and indirect) 8.32% Board President Horacio Jorge Directors José Miguel Granged Fernando Claudio Antognazza Milton Gustavo Tomás Pérez Jorge Aníbal Rauber Gustavo Mariani Guillermo Luis Fiad Fermín Oscar Demonte Vacant Alternate Directors José María Vázquez Leonardo Marinaro Francisco D. Monteleone Roberto José Fagan Iván Diego Duronto Omar Ramiro Algacibiur Sergio Raúl Sánchez Benjamín Roberto Guzman Vacant SUBSIDIARIES AND ASSOCIATE COMPANIES ANNUAL REPORT 101 TRANSQUILLOTA TUNEL EL MELON Name Transmisora Eléctrica de Quillota Ltda. Name Sociedad Concesionaria Tunel El Melon S.A. Kind of Company Limited Partnership Tax N° 77,017,930-0 Kind of Company Private Company Tax N° 96,671,360-7 Address Santa Rosa 76, Santiago, Chile. Address Santa Rosa 76, Santiago, Chile Corporate Purpose The company’s corporate purpose is the transport, distribution, and supply of electric energy on its own account or through third parties. Paid Capital (Th$) 4,829,713 Corporate Purpose The implementation, construction, and exploitation of the public work named the Melón Tunnel and the providing of complementary services that the ministry of public works authorizes. Holding of Enersis (direct and indirect) 29.99% Paid Capital (Th$) 42,892,066 Attorneys Felipe Aldunate Gabriel Carvajal Eduardo Morel Ricardo Santibáñez Alternate Attorneys Alfonso Bahamondes Carl Weber Enrique Sánchez Ricardo Sáez Holding of Enersis (direct and indirect) 59.98% Board President Manuel Irarrazaval Directors Jorge Ale Renato Fernández Principal Directors Executive Officer Maximiliano Ruiz Principal Directors Executive Officer Florencio Alberto Olmos Technical Officer Armando Federico Duvo Chief Administration and Finance Officer Daniel Gustavo Isse Chief Commercial Officer Marcelo Walter Holmgren TERMOELECTRICA MANUEL BELGRANO Name Termoelectrica Manuel Belgrano S.A. Kind of Company Public Company Address Suipacha 268 – Piso 12° - Buenos Aires Corporate Purpose The company’s objective is the production of electric energy and its mass commercialization and, particularly, the managing of the equipment purchasing, construction, operation, and maintenance of a thermal plant in compliance with the “Definite agreement for the management and project operation for the readjustment of the MEM in the framework of resolution SE Nr. 1427/2004”, approved by resolution SE Nr. 1193/2005 (the “Agreement”). For these purposes the company could carry out all complementary and subsidiary activities that involve its corporate purpose, having full legal capacity to acquire rights and to enter into obligations and exercise any activity that is not prohibited by law or these statutes. Subscribed and paid capital (Th$) 79,287 Holding of Enersis (direct and indirect) 8.32% Board President José Miguel Granged Vice President Fernando Antognazza Directors Gustavo Mariani Horacio Jorge T. Turri Rubén Turienzo Milton Gustavo Tomás Pérez Jorge Aníbal Rauber Guillermo Luis Fiad Fermín Demonte Alternate Directors José María Vázquez Leonardo Marinaro Francisco D. Monteleone Roberto José Fagan Iván Diego Duronto Sergio Raúl Sánchez Benjamín Roberto Guzmán Ramiro Omar Algacibiur Vacant Principal Directors Executive Officer Miguel Ortiz Chief Technical Officer Gustavo Manifesto Chief Administration and Finance Officer Oscar Zapiola Chief Commercial Officer Daniel Garrido TESA Name Transportadora de Energía S.A. Kind of Company Public Company Address Bartolomé Mitre N° 797, Piso 13, Oficina 79, Buenos Aires, República Argentina. Corporate Purpose The corporate purpose includes providing hightension electric energy transport services, involving national as well as international xlectrical systems, in accordance with existing legislation, to which end the company could participate in national and international bids, and become a public service licensee for the transport of high-tension national or international electric energy, and carry out activities necessary for the performance of its goals, expressly including but not limiting to forming part of construction, operation, and maintenance contracts for the commencement and/or extension of electric energy transport lines, to participate in financing projects directly or indirectly related with said undertakings as a borrower and/or moneylender and/or guarantor and/ or endorser, to which purpose the company could grant guarantees favoring third parties. Expressly excluded are those activities included in the financial entity law and any others that require public savings tendering. Paid Capital (Th$) 5,925,118 Holding of Enersis (direct and indirect) 53.57% Board President José María Hidalgo Vice President Francisco Javier Bugallo Directors Arturo Pappalardo Alternate Directors José Agustín Venegas Juan Carlos Blanco Roberto José Fagan Principal Directors Executive Officer Francisco Javier Bugallo 102 enersis07 ANNUAL REPORT DECLARATION OF RESPONSIBILITY The directors of Enersis and the Chief Executive Officer signatories to this declaration swear to the truth of all information contained in this annual report, in accordance with general rule No 30 of the Superintendency of Securities and Insurance. ANNUAL REPORT DECLARATION OF RESPONSIBILITY 103 CHAIRMAN VICE-CHAIRMAN DIRECTOR DIRECTOR Pablo Yrarrázaval Tax No: 5.710.967-K Rafael Miranda Tax No: 48.070.966-7 Pedro Larrea Tax No: 48.077.257-K Juan Ignacio de la Mata Tax No: 48.101.910-9 DIRECTOR DIRECTOR DIRECTOR CHIEF EXECUTIVE OFFICER Hernán Somerville Tax No: 4.132.185-7 Patricio Claro Tax No: 5.206.994-7 Eugenio Tironi Tax No: 5.715.860-3 Ignacio Antoñanzas Tax No: 22.298.662-1 

Continue reading text version or see original annual report in PDF format above