Cover
A N N U A L R E P O R T
enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
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ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
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Santiago Stock Exchange
ENERSIS
New York Stock Exchange
ENI
Madrid Stock Exchange
XENI
Brief Presentation
Enersis S.A. was incorporated, initially, with the name Compañía Metropolitana de Distribución Eléctrica S.A., and
changed its name to Enersis S.A. on August 1, 1988. Its corporate capital is ThCh$2,824,882,835, divided into
32,651,166,465 shares. Its shares are quoted on the Chilean exchanges, on the New York Stock Exchange in the
form of American Depositary Receipts (ADR) and on the Latin American Securities Exchange of the Madrid Stock
Exchange (LATIBEX). Its principal business is the exploitation, development, operation, generation, distribution,
transmission, transformation and/or sale of energy in any of its forms or nature, directly or through other companies,
plus businesses in telecommunications and engineering consultancy services, in Chile or abroad, and to invest and
manage its investments in subsidiaries and associate companies. Its total assets amounted to ThCh$13,210,140,321
as of December 31, 2009. Enersis controls and manages a group of companies that operate in the electricity
markets of five countries in Latin America (Argentina, Brazil, Chile, Colombia and Peru). In 2009, the net income
attributable to the dominant company amounted to ThCh$660,231,043 and the operating income amounted
to ThCh$1,924,636,425. At the end of 2009, it provided direct jobs to 12,470 people through its subsidiaries
companies in the region.
enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
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CHAIRMAN’S LETTER TO SHAREHOLDERS
4
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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Chairman’s letter to shareholders
Pablo Yrarrázaval Valdés
Chairman
Dear shareholder,
On behalf of the board of directors of Enersis and all the personnel of this
magnificent group, I am proud to present you with the Annual Report 2009,
a document that summarizes the principal highlights of our performance in
electricity generation, transmission and distribution in the five countries where we
are present in Latin America: Argentina, Brazil, Chile, Colombia and Peru.
As usual, and before commenting on the principal financial and operating
indicators, I should like to address myself, as chairman of the board of Enersis, to
every one of you to thank you for the confidence placed in our business, a fact
that encourages us to improve our practices day by day and face in the best way
the challenges that an increasingly-more competitive electricity sector imposes on
us.
In a year noted for the fall in economic activity in the principal global markets, I
am pleased to say that the countries in which we operate overcame these forces
admirably. The region’s economies have shown GDP growth rates of around 4.5%
in recent years. However, these contracted in 2009, with negative growth reported
in some countries. Despite this clear contraction, the impact of the crisis was
moderate compared to other zones, and the recovery we expect will be faster; this
is because the economic authorities were concerned to reduce their levels of public
debt consistent with greater stability, prudence in public policy matters and pro-
growth measures. This situation has enabled them to take anti-cyclical measures in
order to successfully confront the international economic crisis.
The results that I will provide below, as you will see, show the leadership we have
achieved: we are the largest private-sector electricity company in Latin America
by installed capacity, customers and market value. All this without forgetting our
commitment to supplying electricity in the region through friendly and efficient
alternatives from an environmental point of view, at the same time being conscious
and respecting the communities and surroundings in which we operate.
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CHAIRMAN’S LETTER TO SHAREHOLDERS
5
PRINCIPAL INDICATORS
We applied our strategy effectively and correctly during 2009, seeking to make all our
businesses more profitable, maintain a solid financial position, offer the best electricity
service in Latin America and add value to your investment as our shareholders.
The good performance and management by Enersis of its Latin American portfolio,
by having operating companies in five countries in the region and with a presence
in the generation, transmission and distribution businesses, permitted us to end the
year with a net income attributable to the dominant company of Ch$660,231 million,
a 30.1% increase over the Ch$507,590 million reported for 2008. In line with this,
EBITDA reached Ch$2,444,934 million, an increase of 7.2%, while operating income
was Ch$1,924,636 million, which represented an improvement of 3.3%.
This good performance is mainly due to the good results of the generation and transmission
businesses whose operating income was Ch$1,192,408 million, an increase of 14.2%. This was
offset by a 7.5% decrease in the operating income of the distribution businesses, ending the year
at Ch$761,417 million, largely explained by negative tariff impacts in our subsidiary Chilectra.
With respect to energy sales, the generation business showed a rise of 3.4% to 66,728 GWh,
while the distribution segment rose by 1% to end the year with 63,418 GWh. Energy losses
in this last segment were 11.0%, with remarkable reductions in Brazil, Peru and Argentina.
The positive business progress and confidence in our corporate project was in turn reflected
in the 40.2% rise in the share price of Enersis during 2009, from Ch$164.73 in December
2008 to Ch$230.91 per share at the end of last year. At the same time, the price of the
company’s ADR rose by 79.4%, from US$12.74 to US$22.86 in the same period.
DIVERSIFIED PORTFOLIO
The following are the principal highlights of the performance of Enersis in its operations in the
region:
In Argentina, our generation business produced Ch$47,736 million at the operating level, an
increase of 11.4%, with a remarkable 103.4% increase from Hidroeléctrica El Chocón, which
amounted to Ch$38,700 million of operating income. In our distribution area, the operating
income of Edesur declined by 30%, from Ch$45,627 million to Ch$31,876 million.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
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In Brazil, the operating income of the generation business showed a rise of 8.7% to
Ch$177,772 million. This reflects a 194.4% increase in the operating income of our
subsidiary Endesa Fortaleza, amounting to Ch$83,926 million, compensated by a fall of
Ch$44,153 million reported by Endesa Cachoeira, whose operating income was Ch$50,629
million. In the distribution segment, Ampla produced an operating income of Ch$187,025
million, an increase of 11% while Coelce reported operating income of Ch$151,175 million,
Ch$11,233 million more than the year before.
In Chile, the generation business produced an increase of 12.7% at the operating level,
ending the year with Ch$640,040 million. In the distribution segment, the subsidiary
Chilectra ended the period with operating income of Ch$129,032 million, a fall of 39.6%.
In Colombia, the operating income of our generation subsidiary, Emgesa, was Ch$250,811
million, 15.7% higher than that of the year before. In distribution, Codensa produced
operating income of Ch$199,884 million, 1.5% less than in 2008.
In Peru, our generation subsidiary, Edegel, reported operating income of Ch$76,049 million,
an increase of 46.4%. In distribution, Edelnor showed operating income of Ch$62.425
million, 17.9% greater than the previous year.
MORE THAN 14,800 MW AND CLOSE TO 13 MILLION CUSTOMERS
By the end of 2009, our installed capacity in the region had increased by 4% to close at
14,851 MW.
During this period, the Quintero thermal plant (257 MW), an additional 46 MW at San Isidro
II, the Canela II wind farm (60 MW) and the Quintero LNG terminal (a re-gasification plant
in which Endesa Chile holds 20% of the shares) in Chile started operations, while in Peru,
the expansion of the Santa Rosa thermal plant in Lima was inaugurated, consisting of the
installation of a new natural gas unit of 199.8 MW, with which the installed capacity of
Edegel rose to 1,667 MW.
In the distribution business, we added 375,000 new customers, equivalent to the acquisition
of a medium-sized distribution company. Our companies supplied electricity to 12.8 million
customers located in five of the principal cities in Latin America: Buenos Aires, Río de
Janeiro, Santiago, Bogotá and Lima.
OUR COMMITMENT
The Enersis Group has a unique and non duplicable portfolio of assets, having a presence
in five countries in the region and operations in the businesses of electricity generation,
transmission and distribution, a situation that enables us to diversify our cash flows by being
exposed to different hydric cycles and markets.
And despite the effects of the global financial crisis, we remain firmly committed to the
energy, economic and social development of Latin America.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
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7
Our investments during 2009 in the five countries where we operate grew over the previous
year to more than 1,400 million euros. In this context, I wish to comment on an event that
occurred in the middle of 2009 which is of great importance for our actions.
As you will know, our parent company, ENDESA, experienced through a long public share-
offering process which terminated on June 25 when the ENEL Group became the controller
of 92.06% of the share capital of ENDESA following the acquisition of the 25.01%
shareholding of ACCIONA. By having as shareholders both ENDESA and ENEL, world-level
energy leaders, we now form part of an industrial group with a clear focus in the electricity
business. This situation enables us to set out the future from a completely clear position in
view of the contribution and importance that our business in Latin America has for both
ENDESA and ENEL.
Our commitment to support the growth in electricity demand will remain unchanged for
2010. Among the projects under way in Chile is the construction of the Bocamina II (370
MW) thermal plant, which will start operating by the end of 2010. We continue to work on
the development of the HidroAysén (2,750 MW) project in Chile and the El Quimbo (400
MW) hydroelectric plant in Colombia. Under study are projects that include the Neltume
(490 MW) and Los Cóndores (150 MW) hydroelectric plants and the Punta Alcalde (740
MW) thermal plant, all in Chile, while in Peru, we are analyzing the Curibamba (188 MW)
hydroelectric plant.
Overall, we firmly maintain our plans for facing the sector’s future development. We have
the experience and financial strength to handle these challenges and take advantage of the
opportunities that present themselves.
We have drawn up our principal lines of action which include the maintenance our
leadership positions in Chile, Colombia and Peru, obtaining efficiency and operating with
the best practices, guaranteeing satisfactory safety and service security levels, as we have
always done, and acting responsibly with respect to the care and preservation of the
environment.
FOR SUSTAINABLE DEVELOPMENT
With respect to this last point, ensuring the environmental balance of our surroundings, we
are firmly convinced that for facing these challenges, we should decisively develop potential
in renewable energies in the region, especially hydroelectricity. While as a group we have
a diversified mix in the generation business, we are convinced of the inherent benefits of
developing new hydroelectric projects.
The arguments defending this position are based on the interest of the Enersis Group in
the welfare of the whole international community and with the least possible impact,
through environmentally friendly initiatives. We have contributed with concrete works for
the security supply. We have diversified the energy matrix by having hydroelectric, wind and
thermal plants, and we have an active portfolio of new generation plants. However, we
are sure that the development of hydroelectricity is and will remain important in an energy
strategy, friendly with the surroundings and respecting the environment.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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51
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8
CORPORATE SOCIAL RESPONSIBILITY
With respect to corporate social responsibility (CSR), I can state with pride that during 2009
we continued to progress with the development of a series of initiatives that fall within our
principal center of action in terms of sustainability and which are linked to actions in the
area of education.
In summary, I can mention the following projects carried out in Latin America:
In Argentina these included the El Viaje de la Energía education program and the Red
Solidaria de Voluntarios; in Brazil, the initiatives Conciencia Ampla Cultural, ECOELCE,
Conciertos Didácticos, Mulheres Integradas and Athletics Days; in Chile, we continue with
the so-called Iluminando Monumentos al Sur del Mundo (also carried out in Colombia and
Peru), the Chile bicentenary project of Four Moments of Time, the Corporate Volunteers
Program, the Energy Program for Education and the Chilectra Cup; in Colombia, we offer
the Gestión Pública Territorial Diploma and the Paseo de la Electricidad Itinerante, and in
Peru, we offer the Mathematics Program for Everyone and we continue with the Instituto
Superior Tecnológico NuevoPachacútec.
PRIZES
I also wish to share with you the series of awards that we have received during 2009, prizes
that confirm our achievements and at the same time encourage us to improve our policies
and good practices year by year.
These awards include:
•
•
•
•
•
•
•
•
•
•
•
Energy Company of the Year Latin America, by The New Economy (Enersis).
Recognition of the education program El Viaje de la Energía by the government of the
city of Buenos Aires (Edesur).
Prize in the category of Audiovisual Media Management, by ABERJE (Endesa Brasil).
Best distributor in Brazil, by Abradee (Coelce).
Top 10 Best Companies in Corporate Citizenship, by Gestão&RH Editora (Ampla).
Second place in the ranking of the Most Admired Companies in Chile, by Diario
Financiero and PricewaterhouseCoopers (Endesa Chile).
Fourth place in the 5th CSR Ranking 2009, by Fundación PROhumana, the
Confederación de la Producción y del Comercio (CPC) and Qué Pasa magazine
(Chilectra).
Best Environmental Performance and Best Corporate Governance, by ANDESCO
(Emgesa).
First place innovation projects, by ASOCODIS (Codensa).
First place in the Large Company category in the RPP Integration and Solidarity
competition, by Radio Programas del Perú (Edelnor).
6th Perú 2021 prize for Corporate Social Responsibility, by Perú 2021 and the Pontificia
Universidad Católica del Perú (Edegel).
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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CHAIRMAN’S LETTER TO SHAREHOLDERS
9
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
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TOWARDS A NEW ENERGY MODEL
In the past, we promised as the Enersis Group to work with all our means to search for
solutions that resolve difficulties in energy matters that might complicate supplies in the
countries where we operate, while maintaining the service-quality standards and leadership
position that we have in an ever-more demanding energy market.
Today, with all pride I can state that the companies comprising the Enersis Group have done
their work, and they have done it well: contributing to the generation of value for our
shareholders, the growth of our employees, and to the energy supply in the markets and
communities where we have a presence, especially in Chile, the country from which we lead
our businesses in the region.
All these actions however are part of a wider ambition, and to which all our companies are
committed, which is to deliver the best electricity service in Latin America. A basic principle
of this is that the electricity supply is an essential element for the development and welfare
of the five countries in which we are present. We are convinced that our business group
should be an important player in undertaking the investments that will be needed in the
short, medium and long term by over 50 million people to whom we provide a service in the
continent.
As chairman of Enersis, and on behalf of its board, I wish to congratulate every one of
the employees and staff of our companies because without their decided commitment
we would not have achieved each of the targets we set ourselves nor the excellent results
obtained in 2009.
We are an energy multinational, we employ more than 12,000 people, we have a real
participation in five countries, we have a diversified asset portfolio, a deeply-rooted and
permanent presence, the knowledge and skills, and a solid financial position. In all, we have
the tools necessary for making the Enersis Group, the head of ENDESA’s businesses in Latin
America, a regional and global benchmark and by so doing lead the new energy model with
our experience and position. All this through the delivery of a safe and quality service and
through the development of projects that use local, renewable and clean resources from an
environmental viewpoint.
Yours sincerely,
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Pablo Yrarrázaval Valdés
Chairman
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ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
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ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
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Highlights of 2009
In late June, our parent ENDESA
reported that the ENEL Group had
taken control of 92.06% of its share
capital, following its acquisition of the
25.01% shareholding of ACCIONA in
the company.
Enersis obtained the Energy Company
of the Year Award, Latin America, as
published by the prestigious British
magazine TheNew Economy. The
company was the only entity from
Latin America included in the ranking
called Energy and Environmental
Awards.
During January, begun the
donation, jointly with El Mercurio
and Universidad de los Andes, of
volumes to the collection of Chile in
Four Moments of Time. This activity
benefited more than 85 schools in the
whole of Chile during the year.
In April, EducaRSE was launched,
an associate project of corporate
social responsibility (CSR) promoted
by Acción RSE. The Enersis Group
participates through Encumbra tu Idea
in the Energy for Education program
and trough the Chilectra professorship.
Through the Libraries Donation
program, the Enersis Group and El
Mercurio gave 150 books to the Arturo
Prat Base and 35 volumes to the school
of Villa las Estrellas, both in the Chilean
Anarctic Territory.
In May, Enersis was recognized among
the select group of 15 Companies with
Greatest Creation of Value 2008, a
survey conducted by Capital magazine
and Santander Global Banking &
Markets in the framework of the
Fourth Annual Investors Summit.
Enersis had an outstanding
participation in the Global Capital
Markets and the U.S. Securities Laws
2009 conference: Strategies for the
Changing Regulatory Environment,
an event that brought together the
top executives of the United States
Securities and Exchange Commission
(SEC) and law firms, regulatory entities
and the most important investment
banks in the USA and Europe.
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HIGHLIGHTS OF 2009
12
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
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On July 1, Ignacio Antoñanzas, chief
executive officer of Enersis, was
appointed general director for Latin
America of ENDESA.
Enersis received the Prize of Honor
of the Chilean Safety Association for
the low accident and occupational
death rates of the Company and
its subsidiaries in Chile, and for
the high emphasis on safety as an
organizational value.
The same month, Enersis and its
subsidiary Endesa Chile were placed
in the top 3 of the Best Managed
Company ranking in the Utilities sector,
according to Euromoney.
Enersis and Endesa Chile took part in
Chile Day 2009, an event which on this
occasion, in contrast to other years,
brought together both public and
private-sector representatives.
At the end of July, Enersis and Endesa
Chile declared as successful their
request for amendments to their
Yankee bonds issues.
In August, for the fifth year running,
MBA students of George Washington
University, on their study visit to Chile,
chose Enersis in order to know the
functioning of the Latin American
electricity market in detail.
The Enersis Group obtained for
the second consecutive year the
distinction of the Best Business Group,
according to Gestión magazine
and PricewaterhouseCoopers. The
ceremony was held during August.
The subsidiary Endesa Chile started
up in September the second unit
of its Quintero thermal plant, thus
completing a capacity of 257 MW.
enersis 09
ANNUAL REPORT
ANNUAL REPORT
HIGHLIGHTS OF 2009
13
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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During October, the chairman of
Endesa, Borja Prado, visited Chile for
the first time in that position.
On October 9, Endesa Chile acquired
an additional 29.3974% in its
subsidiary Edegel, to then control
62.6% of its share capital. On October
15, Enersis acquired an additional 24%
of the share capital of the Peruvian
subsidiary Edelnor, increasing its
shareholding to 57.53%.
The Enersis Group, jointly with El
Mercurio and Universidad de los
Andes, inaugurated in November the
exhibition Chile in Four Moments of
Time in the Bellas Artes Metro Station,
as part of the series of activities
forming part of the bicentenary project
Chile in Four Moments of Time.
Edegel started up the new 199.8
MW gas turbine, thus increasing the
capacity of the Santa Rosa plant to a
total of 430 MW.
The Enersis Group had an outstanding
participation in the 11th Latibex Forum
held between November 17 and 19 in
Madrid, Spain.
Endesa Chile started up in mid
December its Canela II wind farm, with
60 MW of installed capacity.
As of december 31, Enersis’ net
income attributable to the owners of
the company was $660.231 millions.
Enersis’ stock price increased 40.2% in
2009 closing at $230.91.
enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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enersis 09
ANNUAL REPORT
ANNUAL REPORT
MAIN FINANCIAL AND OPERATIONAL INDICATORS
15
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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Main Financial and Operational Indicators
Amounts in Million Chilean Pesos
2005 (1)
2006 (1)
2007 (1)
2008 (2)
2009 (2)
As of December 31st of each year
Total Assets
Total Liabilities
Revenues
EBITDA
Net Income (3)
Liquidity Index (4)
Indebtedness Coefficient
GENERATION BUSINESS
ARGENTINA
Number of Employees
Number of Generation Units
Installed Capacity (MW)
Generated Electric Energy (GWh)
Energy Sales (GWh)
BRAZIL
Number of Employees
Number of Generation Units
Installed Capacity (MW)
Generated Electric Energy (GWh)
Energy Sales (GWh)
CHILE
Number of Employees
Number of Generation Units
Installed Capacity (MW)
Generated Electric Energy (GWh)
Energy Sales (GWh)
COLOMBIA
Number of Employees
Number of Generation Units
Installed Capacity (MW)
Generated Electric Energy (GWh)
Energy Sales (GWh)
EN PERU
Number of Employees
Number of Generation Units
Installed Capacity (MW)
Generated Electric Energy (GWh)
Energy Sales (GWh)
DISTRIBUTION BUSINESS
ARGENTINA
Energy Sales (GWh)
Number of Clients
Energy Losses
Number of Employees
Clients /Employees
BRAZIL
Energy Sales (GWh)
Number of Clients
Energy Losses
Number of Employees
Clients /Employees
CHILE
Energy Sales (GWh)
Number of Clients
Energy Losses
Number of Employees
Clients /Employees
COLOMBIA
Energy Sales (GWh)
Number of Clients
Energy Losses
Number of Employees
Clients /Employees
PERU
Energy Sales (GWh)
Number of Clients
Energy Losses
Number of Employees
Clients /Employees
10,253,592
4,857,680
3,215,797
1,181,269
68,017
0.88
0.90
11,062,409
5,322,564
3,892,064
1,490,519
285,960
1.17
0.93
11,437,767
5,792,790
4,686,676
1,680,994
188,376
1.30
1.03
13,781,177
7,752,045
6,559,591
2,544,925
507,590
1.09
1.29
13,210,140
6,833,137
6,449,888
2,444,934
660,231
1.17
1.07
2005
311
20
3,624
12,333
12,579
191
13
1,039
3,954
2,898
765
50
4,477
18,764
20,731
326
27
2,657
11,864
15,077
158
21
969
4,516
4,600
2005
14,018
2,165,101
11.4%
2,338
926
14,753
4,654,206
18.7%
2,645
1,760
11,851
1,404,224
5.5%
712
1,972
10,094
2,072,864
9.4%
926
2,239
4,530
924,729
8.6%
536
1,725
2006
316
20
3,639
13,750
13,926
196
13
980
4,489
6,867
789
50
4,477
19,973
20,923
376
28
2,779
12,564
15,327
200
24
1,426
6,662
6,767
2006
14,837
2,195,914
10.5%
2,407
912
15,438
4,859,491
18.0%
2,726
1,783
12,377
1,437,381
5.4%
708
2,030
10,755
2,138,497
8.9%
934
2,290
4,874
951,553
8.2%
548
1,736
2007
323
20
3,644
12,117
12,406
191
13
987
3,954
7,348
841
63
4,779
18,773
19,212
399
28
2,829
11,942
15,613
206
24
1,468
7,654
7,994
2007
15,833
2,227,742
10.7%
2,534
879
16,212
5,067,317
17.4%
2,682
1,889
12,923
1,483,239
5.9%
728
2,037
11,441
2,208,559
8.7%
931
2,372
5,201
986,451
8.1%
544
1,813
2008 (2)
2009 (2)
325
20
3,652
10,480
11,098
193
13
987
3,379
7,093
1,123
65
5,283
21,267
21,532
404
29
2,895
12,905
16,368
219
24
1,467
8,102
8,461
332
20
3,652
11,955
12,405
200
13
987
3,319
6,869
1,172
110
5,650
22,239
22,327
415
29
2,895
12,674
16,806
224
25
1,667
8,163
8,321
2008 (2)
2009 (2)
16,160
2,262,231
10.6%
2,590
873
16,689
5,308,306
16.4%
2,576
2,061
12,535
1,533,866
5.9%
717
2,139
11,822
2,284,855
8.1%
932
2,452
5,599
1,027,750
8.2%
571
1,800
16,026
2,305,060
10.5%
2,628
877
17,253
5,487,066
16.8%
2,533
2,166
12,585
1,579,069
6.1%
731
2,160
11,837
2,360,544
8.2%
1,017
2,321
5,716
1,060,508
8.1%
595
1,782
1) Financial statements prepared according to generally accepted accounting principles in Chile.
2) Figures in IFRS accounting. Until 2008, the annual financial statements were prepared according to generally accepted accounting principles in Chile. Since 2009, the financial
statements have been prepared in accordance with International Financial Reporting Standards (IFRS or IFRS). Starting from 2008, figures are presented under the new
accounting standards and those include the proportional consolidation of the jointly controlled companies in which Enersis has participation. Therefore, figures as of 2008 and
2009 included the percentage of power generation, energy sales and employees of these societies.
3) For the years 2008 and 2009, corresponds to the Net Income attributable to the Owners of the Company.
4) Total Liabilities/(Shareholders’ Equity attributable to the Owners of the Company plus Minority Interest).
enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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enersis 09
ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE COMPANy
17
Identification of the Company
Name
Location
Enersis S.A.
Santiago, being able to establish agencies or branches in other
parts of the country or abroad
Kind of Society
Publicly held limited liability stock company
Tax N°
Address
Telephones
Fax
P.O. Box
Web Site
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
Electronic Mail
informaciones@e.enersis.cl
Securities Registry N°
External Auditors
Nº 175
Deloitte
Suscribed and Paid Capital (M$)
2,824,882,835
Chilean Stock Exchanges Nick Name
ENERSIS
Nueva York Stock Exchanges Nick Name
Madrid Stock Exchanges Nick Name
ENI
XENI
ADR Program Custodian Bank
Banco de Chile
ADR Program Depositary Bank
Citibank N.A.
Latibex Custodian Bank
Banco Santander
Latibex Link Entity
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
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
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enersis 09
ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE COMPANy
18
01. CONSTITUTION
The company that gave rise to Enersis S.A. was formed initially with the name
Compañía Chilena Metropolitana de Distribucion Electrica S.A. by public deed
dated June 19, 1981 granted by the notary Patricio Zaldívar Mackenna in
Santiago, and was modified by public deed dated July 13 the same year before
the same notary. The company’s incorporation was authorized and its bylaws
approved by Resolution 409-S of July 17, 1981 of the Securities and Insurance
Commission (SVS). The extract of the incorporation authorization and approval
of the bylaws was registered in the Santiago Trade Registry on page 13,099 Nº
7,269 for year 1981, and were published in the Official Gazette of July 23, 1981.
The bylaws of Enersis have since undergone a number of modifications.
On August 1, 1988, the company’s name was changed to Enersis S.A. The latest
modification is that set out in public deed dated April 13, 2006, certified by the
Santiago notary Patricio Zaldívar Mackenna, whose extract was registered in the
Santiago Trade Register for 2006, page 15,343, Nº 10,611 and published in the
Official Gazette on April 22, 2006.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
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enersis 09
ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE COMPANy
19
02. CORPORATE OBJECTS
The company’s objectives are to explore, develop, operate, generate, distribute,
transmit, transform and/or sell energy in any of its forms or nature, in the
country or abroad, directly or through other companies, and telecommunications
activities and the provision of engineering consultancy within the country
and abroad. It may also invest and administer its subsidiaries and associate
companies, whether generators, transmitters, distributors or traders of electricity
or whose business is any of the following: (i) energy, in any of its forms or
nature, (ii) the supply of public utilities or whose main raw material is energy, (iii)
telecommunications and IT, and (iv) trading over internet.
In complying with its main objects, the company will carry out the following
functions: a) promote, organize, build, modify, dissolve or liquidate companies
of any nature which have similar corporate objects to its own; b) propose
investment, financing and business policies to subsidiary companies, as well as
accounting criteria and systems that these should follow; c) supervise subsidiary
company management: d) provide subsidiary or associate companies with the
necessary financing for their business development and provide management
services; financial, technical, legal and auditing advice; and in general any type of
service that appears necessary for their best performance.
In addition to its main objects and always acting within the limits established
by the Investment and Financing Policy approved by the ordinary shareholders
meeting, the Company may invest in: i) the acquisition, operation, construction,
rental, administration, intermediation, trading and disposal of all kinds of
movable and immovable assets, either directly or through subsidiary or
associate companies; ii) all kinds of financial assets, including shares, bonds
and debentures, commercial paper and in general all kinds of titles or securities
and company contributions, either directly or through subsidiary or associate
companies.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
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enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
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Ownership and Control
01. OWNERSHIP STRUCTURE
The company capital is divided into 32,651,166,465 shares of no par value and
of the same sole series.
As of December 31, 2009, all the shares were subscribed and paid, distributed in
the following manner:
Shareholders
Endesa Latinoamérica, S.A.
Pension Funds
ADR´s (Citibank N.A.)
Stock Brokers, Insurance Companies and Mutual Funds
Banco de Chile (Third parties)
Foreign Investment Funds
Other Shareholders
Total shares
Number of Shares
Participation
19,794,583,473
5,190,147,961
4,065,137,650
1,754,069,064
523,870,821
119,054,251
1,204,303,245
60.62%
15.90%
12.45%
5.37%
1.60%
0.36%
3.70%
32,651,166,465
100.00%
02. IDENTIFICATION OF THE CONTROLJERS
According to Chapter XV of Law 18,045, the direct controller of the company is
Endesa Latinoamérica S.A., a Spanish corporation that holds 60.62% of Enersis.
Endesa Latinoamérica S.A., in turn is controlled 100% by ENDESA, S.A., a
corporation located in the Kingdom of Spain and whose main shareholders
as of December 31, 2009, and according to the CNMV (Spanish National
Securities Market Commission) are: ENEL ENERGY EUROPE S.L. with a 92.063%
shareholding (ENEL ENERGY EUROPE S.L in turn is controlled 100% by ENEL
S.p.A). The free float of ENDESA S.A. as of December 31, 2009 was 7,937%.
enersis 09
ANNUAL REPORT
ANNUAL REPORT
OwNERSHIP AND CONTROL
22
03. THE TWELVE LARGEST SHAREHOLDERS OF THE COMPANY
As of December 31, 2009, Enersis had 8,002 shareholders. The twelve largest
were:
Nane
Tax No.
Number of Shares
Participation
Endesa Latinoamérica, S.A.
59,072,610-9
19,794,583,473
Citibank N.A. (according to circular Nº 1.375 of the SVS)
97,008,000-7
4,065,137,650
AFP Provida S.A.
AFP Habitat S.A.
AFP Capital S.A.
AFP Cuprum S.A.
98,000,400-7
1,606,241,032
98,000,100-8
1,329,987,549
98,000,000-1
1,197,500,900
98,001,000-7
884,826,791
Banco de Chile (on behalf of third parties)
97,004,000-5
523,870,821
Banchile Corredores de Bolsa S.A.
96,571,220-8
377,680,117
Banco Itaú (on behalf of investors)
76,645,030-K
291,557,546
Bolsa Electrónica de Chile
96,551,730-8
217,289,327
Banco Santander (on behalf of foreign investors)
97,036,000-K
203,635,787
AFP Planvital S.A.
98,001,200-K
171,591,689
60.62%
12.45%
4.92%
4.07%
3.67%
2.71%
1.60%
1.16%
0.89%
0.67%
0.62%
0.53%
Sub total 12 shareholders
Other 7,990 shareholders
TOTAL 8,002 SHAREHOLDERS
30,663,902,682
1,987,263,783
93.91%
6.09%
32,651,166,465
100.00%
04. MOST IMPORTANT CHANGES IN THE OWNERSHIP
The most important changes in the ownership of Enersis during 2009 were:
Name
Shares as of 31/12/2008
Shares as of 31/12/2009
Change in number of shares
Citibank N.A. (according to circular Nº 1.375 of the SVS)
3,563,352,750
AFP Provida S.A.
AFP Habitat S.A.
AFP Capital S.A.
AFP Cuprum S.A.
Banco de Chile (on behalf of third parties)
Banchile Corredores de Bolsa S.A.
Banco Itaú (on behalf of investors)
Bolsa Electrónica de Chile
Banco Santander (on behalf of foreign investors)
1,744,595,549
1,341,201,242
1,250,054,362
1,069,960,516
873,795,010
447,694,539
127,334,804
71,994,378
0
4,065,137,650
1,606,241,032
1,329,987,549
1,197,500,900
884,826,791
523,870,821
377,680,117
291,557,546
217,289,327
203,635,787
501,784,900
-138,354,517
-11,213,693
-52,553,462
-185,133,725
-349,924,189
-70,014,422
164,222,742
145,294,949
203,635,787
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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OwNERSHIP AND CONTROL
23
05. SUMMARY OF SHAREHOLDERS’ COMMENTS AND PROPOSALS
Enersis did not receive any comments on the progress of the business during
2009 from the majority shareholders or shareholder groups holding 10% or
more of the issued shares with voting rights, in accordance with the provisions of
Article 74 of Law 18.046 and Articles 82 and 83 of the Corporations Law.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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ADMINISTRATION AND PERSONNEL
25
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
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116
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Administration and Personnel
01. BOARD OF DIRECTORS
CHAIRMAN
VICECHAIRMAN
DIRECTOR
DIRECTOR
Pablo Yrarrázaval Valdés
Chairman of the Santiago
Stock Exchange
Tax ID No.: 5,710,967-K
Andrea Brentan
Civil Mecanic Engineer
Politecnico di Milano
And Master in Applied Sciences
New York University
Tax ID No.: C832206
Rafael Miranda Robredo
Industrial Engineer
Instituto Católico de Artes
e Industrias de Madrid
Tax ID No.: 48,070,966-7
Hernán Somerville Senn
Lawyer
Universidad de Chile
Tax ID No.: 4,132,185-7
DIRECTOR
DIRECTOR
Eugenio Tironi Barrios
Sociologist
School of Senior Studies in
in Social Sciences,
Paris, France
Tax ID No.: 5,715,860-3
Patricio Claro Grez
Civil Industrial Engineer
Universidad de Chile
Tax ID No.: 5,206,994-7
DIRECTOR
Vacancy
BOARD OF DIRECTORS SECRETARY
Domingo Valdés Prieto
Lawyer
Universidad de Chile
Tax ID No.: 6,973,465-0
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
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Enersis is managed by a 7-member board of directors each of whom remains in
office for a period of 3 years and may be reelected.
The board of directors was elected at the ordinary shareholders meeting held on
April 1, 2008. The chairman, vice-chairman and the secretary to the board were
appointed at a board meeting held on the same day.
The current vice-chairman of the board was appointed at extraordinary board
meeting No.7 held on July 28, 2009. There is currently a vacancy on the board.
DIRECTORS’ REMUNERATION
Pursuant to article 33 of the Corporations Law 18,046, the ordinary shareholders
meeting held on April 15, 2009 approved the remuneration of the board
members for 2009.
The amounts paid to the directors as of December 31, 2009 as members of
the board as such, and as members of the Directors’ Committee and Audit
Committee, and those company directors who are acting or have acted during
2009 as directors of subsidiaries, are detailed below:
As of December 31st, 2009 In million Chilean Pesos
Name
Title
Exercise Period
Enersis
Board (*)
Subsidiaries
Board
Board
Committee (*)
Auditing
Committee (*)
Pablo Yrarrázaval Valdés
Chairman
01.01.09 al 31.12.09
55,012
8,388
Andrea Brentan
Vicechairman
29.07.09 al 31.12.09
Rafael Miranda Robredo (**) Director
01.01.09 al 31.12.09
Pedro Larrea Paguaga
Director
01.01.09 al 29.07.09
Juan Eduardo Errázuriz Ossa
Director
01.01.09 al 28.10.09
Hernán Somerville Senn
Director
01.01.09 al 31.12.09
Patricio Claro Grez
Director
01.01.09 al 31.12.09
Eugenio Tironi Barrios
Director
01.01.09 al 31.12.09
35,855
16,856
23,698
28,280
28,280
28,279
9,163
9,163
3,061
3,824
3,824
Variable on
charge to 2008
Net Income
79,710
59,783
39,855
29,946
39,855
39,855
39,855
9,909
Juan Ignacio de la Mata (***)
TOTAL
216,260
26,714
10,709
338,768
Notes:
(*) Gross Amounts
(**) Rafael Miranda Robredo was Vicechairman until 29.07.09 and is Director starting on 29.07.09
(***) Juan Ignacio de la Mata was Director until 28.03.08, Variable remuneration corresponds to year 2008.
INCENTIVE PLANS
It is considered an incentive plan to pay a variable annual remuneration
equivalent to one thousandth of the net income from the current year.
BOARD CONSULTANCY FEES
The board paid no consultancy fees during 2009
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
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116
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02. DIRECTORS’ COMMITTEE
In accordance with Article 50 bis of the Corporations Law 18,046, Enersis has
a 3-member Directors’ Committee whose powers and duties are set out in
that article.
On April 1, 2008, the company’s board appointed Pablo Yrarrázaval Valdés
(related to the controller), Hernán Somerville Senn (related to the controller) and
Patricio Claro Grez (independent of the controller) as members of the Directors’
Committee. In turn, the Enersis Directors’ Committee, at its meeting of April 25,
2008 appointed Pablo Yrarrázaval Valdés as its chairman and Domingo Valdés
Prieto as its secretary.
ANNUAL ACTIVITY REPORT
The Directors’ Committee met 12 times during the year 2009. It examined and
approved the information relating to the operations referred to in article 89 of
the Corporations Law 18,046 and reported on these. In addition, specific issues
were dealt with at these meetings, as detailed below:
At its first meeting, held on January 28, 2009, the Directors’ Committee
declared that it had examined the Company’s unconsolidated and consolidated
financial statements as of December 31, 2008, their notes, statements of
income and material information, plus the reports of the external auditors and
inspectors of accounts. The Committee also took formal note of the report
prepared by the external auditors on the banking and money-broking business,
in accordance with Joint Circular No.960 of the Superintendency of Banks and
Financial Institutions and the SVS, and the internal control letter of Enersis S.A.
dated November 10, 2009 prepared by the external auditors Deloitte & Touche,
in accordance with SVS Circular 422. It agreed to propose to the ordinary
shareholders meeting that the firms Feller Rate Clasificadora de Riesgo Limitada
and Fitch Chile Clasificadora de Riesgo Limitada be appointed as the company’s
national private credit-rating agencies and the firms Fitch Ratings, Moody’s
Investors Service and Standard & Poor’s International Ratings Services as its
international credit-rating agencies for 2009. It approved a budget proposal of
the Directors’ Committee for 2009 and decided to submit this proposal to the
board and to the ordinary shareholders meeting of Enersis S.A. It also approved
the text of the report that should be presented to the ordinary shareholders
meeting about the activities of the Committee during 2008, and on the expenses
that it has incurred, including those of advisers during that year.
At its second meeting, held on February 27, 2009, the Directors’ Committee
agreed to propose to the board, in order for it in turn to propose to the ordinary
shareholders meeting, the appointment of the independent external auditing
firm Deloitte & Touche for the year 2009. It also examined the remunerations
system and compensation plans for the company’s managers and senior
executives.
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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At its third meeting, held on March 28, 2009, the Directors’ Committee agreed
that it had examined the transaction consisting of the acquisition of a certain
number of shares issued by Edelnor S.A.A. by Enersis S.A., stating that this
corresponded to fairness conditions similar to those usually prevailing in the
market. It also agreed that, before presenting a formal offer, it was advisable
to accept the proposal of the Company’s chief executive officer to have an
independent valuation report prepared by a top-class investment bank, agreeing
to request this report from Banco Santander. A preliminary report was also issued
on the respective share offer.
At its fourth meeting, held on April 29, 2009, the Directors’ Committee
examined the consolidated financial statements of the Company as of March
31, 2009, their notes, statements of income and material information. It also
examined the terms of the supply contract to be signed between Enersis S.A.,
as provider, and its subsidiary Chilectra S.A., as receiver, for the annual sum
of 1,900 million pesos, for five years, renewable annually; it declared that the
contract met fairness conditions similar to those normally prevailing in the
market, and prepared its report in accordance with Article 50 bis No.3 of Law
18,046. Lastly, the Committee examined certain financial transactions between
the subsidiary Chilectra S.A. and Corpbanca, as established by Resolution
13/2007 of the ordinary meeting of the Directors’ Committee N0.5/2007 of May
29, 2007, declaring that these met conditions of equity similar to those normally
prevailing in the market, and prepared its report in accordance with Article 50 bis
No.3 of Law 18,046.
At its fifth meeting, held on May 27, 2009, the Directors’ Committee examined
the operation consisting of the renewal of the Group’s material damages and
civil liability insurance program within the captive Compostilla Re for the period
2009-2010, since the offers received met conditions of equity similar to those
habitually prevailing in the market, issuing their respective report in accordance
with Article 50 bis No.3 of Law 18,046. The Committee examined the service
contract for the development, implementation and start-up of a computer
program for preparing in Enersis S.A. the personnel and payroll administration
corporate model, declaring that it met fairness conditions similar to those
normally prevailing in the market, and prepared its report in accordance with
Article 50 bis No.3 of Law 18,046.
At its sixth meeting, held on June 24, 2009, the Directors’ Committee
examined the proposed modifications to the information technology services
contracts signed with its subsidiary Synapsis Soluciones y Servicios IT Ltda.,
agreeing to declare that these met conditions of equity similar to those normally
prevailing in the market, and prepared its report in accordance with Article 50
bis No.3 of Law 18,046. The Committee examined the transaction consisting of
the acquisition of shares in Edelnor by Enersis, stating that its terms met fairness
conditions similar to those normally prevailing in the market, and prepared its
report in accordance with Article 50 bis No.3 of Law 18,046.
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At its seventh meeting, held on July 29, 2009, the Committee examined the
transactions entered into by Enersis S.A. with related parties during the month of
June 2009.
At its eighth meeting, held on August 31, 2009, the Directors’ Committee
examined the terms of the supply to be signed respectively by Enersis S.A., as
supplier, and its Synapsis, CAM, Inmobiliaria Manso de Velasco and Endesa Chile
S.A., as receivers, declaring that they met conditions of equity similar to those
normally prevailing in the market, and prepared its report in accordance with
Article 50 bis No.3 of Law 18,046. The Committee examined the transaction
whereby Enersis S.A. provides technical assistance to Compostilla Re, as its
conditions met fairness similar to those normally prevailing in the market, and
prepared its report in accordance with Article 50 bis No.3 of Law 18,046.
At its ninth meeting, held on September 30, 2009, the Directors’ Committee
examined the terms and conditions by which Endesa Latinoamérica S.A. could
accept the firm offer made by Enersis S.A. consisting of the acquisition of shares
issued by Edelnor S.A.A., proposed by Endesa Latinoamérica S.A. by letter dated
March 18, 2009, and prepared its report in accordance with Article 50 bis No.3
of Law 18,046.
At its tenth meeting, held on October 28, 2009, the Audit Committee
examined the consolidated financial statements of the Company as of September
30, 2009, their notes, statements of income and material information, indicating
its agreement with them.
At its eleventh meeting, held on November 20, 2009, the Directors’
Committee agreed to record that it had taken formal and express note of the
internal controls letter of Enersis S.A., dated November 10, 2009, prepared
by the Company’s external auditors Deloitte & Touche, with reference to SVS
Circular 980.
At its twelfth meeting, held on December 17, 2009, the Directors’ Committee
agreed to adopt a resolution of a general nature, to cover future meetings,
consisting of not tape-recording the Committee’s meetings as it believed them
to be unnecessary. The Committee examined the assignment to Enersis S.A.
by Compañía Americana de Multiservicios Limitada of the contract called
“Procurement Management Support for the Infrastructure Support and
Maintenance System” between Compañía American de Multiservicios Limitada
and Synapsis Soluciones y Servicios IT Limitada. The Committee declared that
the contract met fairness conditions similar to those normally prevailing in
the market, and prepared its report in accordance with Article 50 bis No.3 of
Law 18,046. The Committee also examined the signing of a contract called
“Procurement Management Support for the Infrastructure Support and
Maintenance System” that the Company would sign with Synapsis Soluciones y
Servicios IT Limitada, declaring that this contract met fairness conditions similar
to those normally prevailing in the market, and prepared its report in accordance
with Article 50 bis No.3 of Law 18,046.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
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In conclusion, the Directors’ Committee of Enersis S.A. has fully occupied itself
with the matters set out in article 50º bis of the Corporations Law 18,046 and
has analyzed and contributed to the better development of the operations
analyzed.
DIRECTORS’ COMMITTEE EXPENSES DURING 2009
During the year 2007, the Directors’ Committee did not make use of the
operating expense budget approved by the company’s ordinary shareholders
meeting held on April 15, 2009. The Committee has not had to hire the services
of professional consultants for the performance of their duties.
03. AUDIT COMMITTEE
The formation of the Audit Committee was approved by the Enersis board at
its meeting held on June 29, 2005. The Audit Committee is separate from
the board and the Directors’ Committee, as required by Corporations Law
18,046. The Audit Committee is a requirement of the United States of America
Sarbanes Oxley Act and the complementary regulations issued by the Securities
and Exchange Commission (SEC) and the New York Stock Exchange (NYSE),
as Enersis is an issuer of American Depositary Receipts (ADRs) which are duly
registered with the NYSE, and is also an issuer of bonds registered in the United
States of America. Its duties include the following: i) to be one of the proposers
to the ordinary shareholders meeting of the appointment of the external
auditors; ii) to be responsible for controlling the performance of the Company’s
external auditors; iii) to initially approve the external audit services and the
various services provided by the external auditors; and iv) to establish procedures
for the reception and management of complaints in the accounting, internal
control or auditing areas. The Enersis extraordinary shareholders meeting held
on March 21, 2006 reformed its bylaws to regulate the formation, integration,
performance and powers of the Audit Committee.
ACTIVITIES OF THE AUDIT COMMITTEE
On April 1, 2008, the board of directors appointed Hernán Somerville Senn,
Patricio Claro Grez and Juan Eduardo Errázuriz Ossa as members of the Audit
Committee, all of whom meet and declared meeting the level of independence
expected of members of the Audit Committee by the Sarbanes Oxley Act of the
United States of America, the Securities and Exchange Commission and the New
York Stock Exchange, as their respective provisions are applicable to Enersis.
The board also appointed Patricio Claro Grez as financial expert to the Audit
Committee.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
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116
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The Enersis Audit Committee, at its meeting of April 25, 2008, unanimously
agreed to appoint Hernan Somerville Senn as its chairman and Domingo Valdés
Prieto as its secretary. The Audit Committee met on five occasions during 2009,
when the following specific matters were discussed:
At its ordinary meeting No.1/2009, held on January 28, 2009, the Audit
Committee declared that it had examined the Company’s unconsolidated
and consolidated financial statements as of December 31, 2008, their notes,
statements of income and material information, plus the reports of the external
auditors and inspectors of accounts. The Committee also agreed to record
that it had taken formal and express note of the internal controls letters dated
November 15, 2008 and February 19, 2009, prepared by the Company’s external
auditors Deloitte & Touche, with reference to SVS Circular 980, complemented
by its Circular 422 of December 6, 2007. The Committee also took formal and
express note of the report prepared by the external auditors on the banking and
money-broking business for 2008. In accordance with the internal regulations
of the Audit Committee and the Statement on Accounting Standards No.61,
the Audit Committee revised and discussed with the external auditor, Deloitte
& Touche, the scope of its professional services, the coverage of the audit,
its independence, management judgments and accounting estimates, critical
accounting policies and sensitive areas, significant transactions analyzed,
significant changes in accounting policies, proposed audit adjustments carried
out or not, written communications such as letters of representation and
management reports, consultations and principal matters discussed during
the year, disagreements with the management, fraud considerations, state of
progress of the SOX 404 audit and convergence of Chilean accounting principles
with IFRS. Finally, the Committee favorably examined the supervision and
evaluation of the work of the Company’s external auditors during 2008.
The Audit Committee agreed to evaluate favorably the work of the Company’s
external auditors during 2009. The Committee agreed to propose to the ordinary
shareholders meeting the appointment of Deloitte & Touche as its external
auditors for 2009. The Committee approved the fees paid by the companies of
the Enersis Group during 2008 to the different external auditing firms employed,
these being Deloitte and Touche, Ernst and Young and KPMG and authorized the
estimate of fees proposed for the year 2009. The Committee also approved the
text of the report that has to be presented to the ordinary shareholders meeting
and incorporated in the Annual Report about the activities carried out by the
Committee during 2008 and the use made of the functioning expenses approved
for that period by the ordinary shareholders meeting held on April 1, 2008.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
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This Committee meeting also approved the proposed budget for the Audit
Committee for 2009 and agreed to submit the budget to the board and the
ordinary shareholders meeting of Enersis S.A. for this to finally resolve on
the matter. In accordance with the procedures relating to the Ethics Channel
and the Handling of Accusations approved according to the provisions of the
Sarbanes Oxley Act, the Committee issued its opinion on each of the accusations
presented, provided guidelines to follow in each of these and confirmed that the
chairman of the Audit Committee should determine the convenience of calling
an extraordinary meeting of the Committee in the event that the entity making
the accusation justifies it in the opinion of the chairman. In addition, and as
stated in Section 202 of the Sarbanes Oxley Act, the Audit Committee agreed to
pre-approve the contracting of external audit services and those unrelated to the
external audit to be provided by the external auditors and which were presented
to that meeting for its prior approval. The Committee also agreed the schedule
for its ordinary meetings for 2009.
At its ordinary meeting No.2/2009, held on April 28, 2009, the Audit
Committee examined the consolidated financial statements of Enersis S.A. as of
March 31, 2009, its notes, financial statements and material information. The
Committee examined the audit plan of the external auditor, Deloitte & Touche
Sociedad de Auditores y Consultores Limitada, and the methods for carrying it
out, agreeing that the Audit Committee Regulation on this matter was complied
with. The Committee issued its opinion on each of the accusations, issued
directions to follow in each case and confirmed that the chairman of the Audit
Committee should determine the need to call an extraordinary meeting should
the entity making the accusation be justified in the opinion of the chairman. In
addition, and in accordance with Section 202 of the Sarbanes Oxley Act, the
Committee agreed to approve the contracting of certain external audit services
and those unrelated to the external audit to be provided by the external auditors.
At its extraordinary meeting No.3/2009, held on May 27, 2009, the
Committee, in accordance with Section 404 of the Sarbanes Oxley Act, approved
the internal control structures and procedures of Enersis S.A. necessary for the
issuer’s financial report. The Committee also examined the draft of the Form 20-F
relating to the reconciliation to US GAAP of the Company’s financial statements,
plus the related information required by the United States Securities and
Exchange Commission (SEC).
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
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ANNUAL REPORT
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33
At its ordinary meeting No.4/2009, held on July 29, 2009, the Audit
Committee examined the consolidated financial statements of Enersis S.A. as
of June 30, 2009, its notes, financial statements and material information. The
Committee issued its opinion on each of the accusations, issued directions to
follow in each case and confirmed that the chairman of the Audit Committee
should determine the need to call an extraordinary meeting should the entity
making the accusation be justified, in the opinion of the chairman. The
Committee also agreed to approve the contracting of certain external audit
services and those unrelated to the external audit to be provided by the external
auditors, presented on that occasion for its prior approval.
At its ordinary meeting No.5/2009 held on October 28, 2009, the Audit
Committee examined the consolidated financial statements of Enersis S.A. as of
September 30, 2009, its notes, statements of income and material information.
The Committee agreed to complement the procedure for the pre-approval of
professional services provided by the external auditors of the Audit Committee,
with the urgency procedure for the pre-approval professional services provided
by the external auditors. The Committee issued its opinion on each of the
accusations, issued directions to follow in each case and confirmed that
the chairman of the Audit Committee should determine the need to call an
extraordinary meeting should the entity making the accusation justify it in the
opinion of the chairman. In addition, and in accordance with Section 202 of the
Sarbanes Oxley Act, the Committee agreed to approve the contracting of certain
external audit services and those unrelated to the external audit to be provided
by the external auditors.
AUDIT COMMITTEE EXPENSES DURING 2009
The Audit Committee did not make use of the operating expense budget in
2009 as approved by the company’s ordinary shareholders meeting held on
April 15, 2009. The Committee did not need to hire the services of professional
consultants for the performance of its duties.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
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116
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34
04. SENIOR EXECUTIVES
CHIEF HUMAN
RESOURCES OFFICER
CHIEF AUDIT
OFFICER
LEGAL COUNSEL
REGIONAL CHIEF
PLANNING &
CONTROL OFFICER
CHIEF EXECUTIVE
OFFICER
REGIONAL CHIEF
ACCOUNTING
OFFICER
CHIEF REGIONAL
FINANCE OFFICER
CHIEF
COMMUNICATIONS
OFFICER
Francisco
Silva Bafalluy
Antonio
Zorrilla Ortega
Domingo
Valdés Prieto
Ramiro
Alfonsín Balza
Ignacio
Antoñanzas Alvear
Ángel
Chocarro García
Alfredo
Ergas Segal
Juan Pablo
Larraín Medina
Public Administrator
Universidad
de Chile
Tax No.: 7,006,337-9
Mining Engineer
Universidad
Politécnica de Madrid
Tax No.: 22,551,385-6
Lawyer
Universidad de Chile
Tax No.: 6,973,465-0
B.A. in Business
Administration
Pontificia Universidad
Católica de Argentina
Tax No.: 22,357,225-1
Mining Engineer
Universidad
Politécnica de Madrid
Tax No.: 22,298,662-1
B.A. in Economics
and Business
Administration
Universidad
del Pais Vasco
Tax No.: 14,710,692-0
Commercial Engineer
Universidad de Chile
Tax No.: 9,574,296-3
Journalist
Universidad Finis
Terrae
Rut: 11,470,853-4
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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161
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35
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
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05. ORGANIZATION STRUCTURE
CHAIRMAN
Pablo Yrarrázaval Valdés
CHIEF EXECUTIVE OFFICER
Ignacio Antoñanzas Alvear
COMMUNICATIONS
OFFICER
Juan Pablo Larraín Medina
AUDITING OFFICER
Antonio Zorrilla Ortega
HUMAN RESOURCES
OFFICER
ACCOUNTING
OFFICER
CHIEF FINANCIAL
OFFICER
PLANNING AND CONTROL
OFFICER
GENERAL COUNSEL
Francisco Silva Bafalluy
Ángel Chocarro García
Alfredo Ergas Segal
Ramiro Alfonsín Balza
Domingo Valdés Prieto
REMUNERATION OF THE SENIOR EXECUTIVES AND MANAGERS
The total gross remuneration received during 2009 by the senior executives
mentioned above and the other managers of Enersis, totaled 2,015 million
pesos.
BENEFITS FOR SENIOR EXECUTIVES AND MANAGERS
The Company provides complementary health insurance and catastrophic
insurance for its senior executives and their duly-accredited family groups. The
Company also provides life insurance cover for each of its senior executives.
These benefits are granted according to the management level of each employee
at the time.
In 2009, the amount was 17 million pesos, which amount is included in the
remuneration received by the senior executives.
enersis 09
ANNUAL REPORT
ANNUAL REPORT
ADMINISTRATION AND PERSONNEL
36
INCENTIVE PLANS
Enersis has an annual bonus plan for its executives based on meeting objectives
and the level of individual contributions to the company’s results. This plan
includes a definition of ranges of bonuses according to the hierarchical level of
the executives. The bonuses paid to the executives consist of a certain number of
gross monthly remunerations.
SEVERANCE PAYMENTS
During the year 2009, there was not payment for this concept
06. DISTRIBUTION OF HUMAN RESOURCES
The distribution of the Company’s personnel, including information related to
the subsidiaries in the five countries where the Enersis Group operates in Latin
America as of December 31, 2009, was the following:
Company
Enersis
Endesa Brasil (1)
Endesa Chile (2)
Chilectra (3)
Edesur
Edelnor
Codensa (4)
Synapsis (5)
CAM (6)
Manso de Velasco (7)
Managers &
Senior Executives
Professionals &
Technicians
Workers
& Others
8
23
45
11
11
9
7
8
8
3
195
2,102
2,019
574
1,823
471
965
668
976
25
98
649
267
146
794
115
45
57
339
9
Total
301
2,774
2,331
731
2,628
595
1,017
733
1,323
37
Total general
133
9,818
2,519
12,470
Notes:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Includes: Ampla, Coelce, CIEN, Cachoeira Dourada, Fortaleza, CTM and TESA.
Includes: Ingendesa (Chile, Brazil and Peru), Pehuenche, Celta, El Chocón, Edegel, Emgesa, Costanera,
Túnel El Melón, GasAtacama, HidroAysén, Consorcio ARA-Ingendesa.
Includes: Empresa Eléctrica de Colina and Luz Andes.
Includes: Codensa and Empresa Eléctrica Cundinamarca.
Includes: Synapsis Argentina, Synapsis Brasil, Synapsis Chile, Synapsis Colombia, and Synapsis Perú.
Includes: Cam Argentina, Cam Brasil, Cam Chile, Cam Colombia, Cam Perú and Sistemas SEC.
Includes: Aguas Santiago Poniente, Const. and Proyecto Los Maitenes and Agrícola e Inmobiliaria Pastos Verdes.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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161
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ANNUAL REPORT
ADMINISTRATION AND PERSONNEL
37
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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ANNUAL REPORT
ANNUAL REPORT
SHARE TRANSACTIONS
39
Share Transactions
01. SHARE TRANSACTIONS ON THE STOCK MARKETS
The quarterly transactions of the last 3 years on the stock exchanges where
Enersis shares are traded, both in Chile, through the Santiago Stock Exchange
(Bolsa de Comercio de Santiago), and the Chilean Electronic Stock Exchange
(Bolsa Electronica de Chile), and the Valparaiso Stock Exchange (Bolsa de
Valores de Valparaíso), and 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
During 2009, 5,811 million shares were traded at the Santiago Stock Exchange,
which is equivalent to 1,096,974 million pesos. As of December, the closing
share price was 230.91 pesos.
Units
Amounts (Chilean Pesos)
Average Price
Periods
1rst Quarter 2007
2nd Quarter 2007
3rd Quarter 2007
4th Quarter 2007
2,326,545,937
2,281,519,210
2,623,759,573
3,104,262,960
403,238,785,712
448,872,471,686
482,941,651,473
546,181,448,622
Total 2007
10,336,087,680
1,881,234,357,493
1st Quarter 2008
2nd Quarter 2008
3rd Quarter 2008
4th Quarter 2008
2,629,967,374
2,353,763,372
1,810,012,396
2,815,324,441
369,032,945,308
407,183,479,315
312,772,735,787
479,160,238,375
Total 2008
9,609,067,583
1,568,149,398,785
1st Quarter 2009
2nd Quarter 2009
3st Quarter 2009
4th Quarter 2009
1,545,399,629
1,541,427,522
1,241,014,789
1,483,184,289
267,629,805,231
281,772,888,100
247,333,179,220
300,238,377,629
Total 2009
5,811,026,229
1,096,974,250,180
173.32
196.74
184.06
175.95
140.32
172.99
172.80
170.20
173.18
182.80
199.30
202.43
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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SHARE TRANSACTIONS
40
CHILEAN ELECTRONIC STOCK EXCHANGE
696 million shares were traded at the Chilean Electronic Stock Exchange during
the year, the equivalent of 133,039 million pesos. The share price closed at 226 at
December 2009.
Units
Amounts (Chilean Pesos)
Average Price
Periods
1rst Quarter 2007
2nd Quarter 2007
3rd Quarter 2007
4th Quarter 2007
482,727,433
327,721,596
433,727,621
504,779,498
83,082,386,777
64,327,071,276
79,890,053,929
87,569,943,661
Total 2007
1,748,956,148
314,869,455,643
1st Quarter 2008
2nd Quarter 2008
3rd Quarter 2008
4th Quarter 2008
528,349,339
281,269,910
222,175,773
277,018,070
76,278,908,151
48,515,676,390
38,114,037,557
46,733,014,629
Total 2008
1,308,813,092
209,641,636,727
1st Quarter 2009
2nd Quarter 2009
3st Quarter 2009
4th Quarter 2009
Total 2009
172,950,412
176,269,604
161,882,338
185,534,126
696,636,480
29,952,728,437
32,727,994,819
32,234,274,972
38,124,542,694
133,039,540,922
172.11
196.29
184.19
173.48
144.37
172.49
171.55
168.70
173.19
185.67
199.12
205.49
VALPARAISO STOCK EXCHANGE
21 million shares were traded on the Valparaiso Stock Exchange, amounting to
3,984 million pesos. The share price closed at 219.51 pesos at December 2009.
Periods
1rst Quarter 2007
2nd Quarter 2007
3rd Quarter 2007
4th Quarter 2007
Total 2007
1st Quarter 2008
2nd Quarter 2008
3rd Quarter 2008
4th Quarter 2008
Total 2008
1st Quarter 2009
2nd Quarter 2009
3st Quarter 2009
4th Quarter 2009
Total 2009
Units
Amounts (Chilean Pesos)
Average Price
8,364,095
9,737,577
7,417,521
16,507,087
42,026,280
12,601,763
20,095,015
4,196,431
13,461,949
50,355,158
5,822,432
6,662,579
2,616,447
6,038,484
21,139,942
1,446,466,587
1,914,700,194
1,362,390,508
2,947,390,529
7,670,947,818
1,826,943,424
3,470,065,340
727,400,548
2,310,726,034
8,335,135,346
1,057,600,328
1,203,183,215
523,394,087
1,200,161,606
3,984,339,236
172.94
196.63
183.67
178.55
144.98
172.68
173.34
171.65
181.64
180.59
200.04
198.75
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
348
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ANNUAL REPORT
SHARE TRANSACTIONS
41
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
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NEW YORK STOCK EXCHANGE (NYSE)
The shares of Enersis 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 the depositary bank and Banco de Chile as the custodian
in Chile.
During 2009, 96 million ADSs were traded in the United States of America
amounting to 1,644 million dollars. The December ADS closing price was 22.86
dollars.
Periods
1rst Quarter 2007
2nd Quarter 2007
3rd Quarter 2007
4th Quarter 2007
Total 2007
1st Quarter 2008
2nd Quarter 2008
3rd Quarter 2008
4th Quarter 2008
Total 2008
1st Quarter 2009
2nd Quarter 2009
3st Quarter 2009
4th Quarter 2009
Total 2009
Units
Amounts (Dólares)
Average Price
19,608,400
19,283,100
22,964,900
21,992,500
83,848,900
30,348,500
18,772,700
25,112,963
34,750,666
314,610,895
358,148,873
411,880,074
393,529,397
1,478,169,239
459,142,457
344,723,090
418,886,734
467,921,193
108,984,829
1,690,673,474
25,322,091
22,237,729
24,095,308
24,586,636
96,241,764
369,537,941
357,624,325
438,059,222
478,617,884
1,643,839,372
16.04
18.57
17.94
17.89
15.13
18.36
16.68
13.47
14.54
16.12
18.31
19.32
LATINAMERICAN SECURITIES EXCHANGE OF THE MADRID STOCK
EXCHANGE (LATIBEX)
The shares of Enersis started trading on the Latin American Securities Exchange
of the Madrid Stock Exchange (Latibex) on December 17, 2001. The company’s
dealing unit is 50 shares and its mnemonic name is XENI. Santander Central
Hispano Investment S.A. acts as the link agent and Banco Santander is the
custodian in Chile. During 2009, 563 thousand shares were traded, the equivalent
of 6.9 million euros. The closing share price as of December was 16.13 euros.
Amounts (Euros)
Average Price
Periods
1rst Quarter 2007
2nd Quarter 2007
3rd Quarter 2007
4th Quarter 2007
Total 2007
1st Quarter 2008
2nd Quarter 2008
3rd Quarter 2008
4th Quarter 2008
Total 2008
1st Quarter 2009
2nd Quarter 2009
3st Quarter 2009
4th Quarter 2009
Total 2009
Units
468,101
426,654
206,383
250,092
5,720,875
5,826,061
2,701,883
3,023,238
1,351,230
17,272,057
574,208
317,115
349,868
243,642
6,082,911
3,703,245
3,917,120
2,472,402
1,484,833
16,175,678
108,066
153,129
168,606
133,850
563,651
1,179,407
1,831,466
2,148,348
1,816,675
6,975,896
12.22
13.66
13.09
12.09
10.59
11.68
11.20
10.15
10.91
11.96
12.74
13.57
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ANNUAL REPORT
SHARE TRANSACTIONS
42
02. MARKET INFORMATION
STOCK MARKET
During 2009, the Chilean stock market performed well compared to other
exchanges in the world and continued to show its strength reflecting an
important participation of sectors usually seen as defensive, which include the
electricity sector.
In the last two years, Enersis shares have produced a good performance in the
markets where they are traded, even in the complex economic environment
characterizing the period.
SANTIAGO STOCK EXCHANGE
The graph shows the price movement of the Enersis share over the last two years
compared to the Selective Stock Price Index (IPSA) in the local market:
Variation
ENERSIS
IPSA
2008
3.1%
-22.1%
2009
40.2%
50.7%
Accumulated 2008 - 2009
44.5%
17.4%
Ch$ 230.91
(%)
160
140
120
100
80
60
Ch$159.85
7
0
-
c
e
D
8
0
-
b
e
F
8
0
-
r
a
M
8
0
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9
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9
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9
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9
0
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S
9
0
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v
o
N
9
0
-
c
e
D
Enersis
IPSA
Source: Bloomberg
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
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enersis 09
ANNUAL REPORT
ANNUAL REPORT
SHARE TRANSACTIONS
43
NEW YORK STOCK EXCHANGE (NYSE)
The graph shows the price movement of the Enersis ADR listed on the NYSE (ENI)
compared to the Dow Jones Industrial and Dow Jones Utilities indices over the
last two years:
Variation
ENI
Dow Jones Industrial
Dow Jones Utilities
2008
-20.5%
-33.8%
-30.4%
2009
79.4%
18.8%
7.3%
Accumulated 2008 - 2009
42.6%
-21.4%
-25.3%
US$22.86
US$16.03
(%)
160
140
120
100
80
60
40
7
0
-
c
e
D
8
0
-
b
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F
8
0
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8
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8
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9
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D
ENI
Dow Jones Industrial
Dow Jones Utilities
Source: Bloomberg
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
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enersis 09
ANNUAL REPORT
ANNUAL REPORT
SHARE TRANSACTIONS
44
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
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LATINAMERICAN SECURITIES EXCHANGE OF THE MADRID STOCK
EXCHANGE (LATIBEX)
The graph shows the price movement of the Enersis share (XENI) listed on the
Madrid Stock Exchange (Latibex) NYSE (ENI) compared to the IBEX index over the
last two years:
Variation
ENERSIS (XENI)
IBEX
2008
-17.3%
-51.8%
2009
77.1%
97.2%
Accumulated 2008 - 2009
46.5%
-4.9%
16.13
(%)
160
140
120
100
80
60
11.01
7
0
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c
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8
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8
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9
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D
XENI
IBEX
Source: Bloomberg
03. SHARE TRANSACTIONS CARRIED OUT BY DIRECTORS AND
SENIOR EXECUTIVES
Shareholder
Tax No.
Jorge Omar Ale Yarad
8,360,211-2
Ricardo Alvial Muñoz
7,330,389-3
Date of
Transaction in
Share-holders
Register
Number
of Shares
Traded
Trans-action
Unit Pice
(Pesos)
Total Amount
of
Transaction
(Pesos)
20/05/08
21,208
164,00
3,478,112
11/08/08
10,000
187,00
1,870,000
Purchase/
Sale
Sale
Sale
Marcos Cruz Sanhueza
10,702,983-4
Purchase
9/09/08
86,000
150,00
12,900,000
Marcos Cruz Sanhueza
10,702,983-4
Inmobiliaria Inversiones
y Asesorías Quantum Ltda.
78,094,800-0
Marcos Cruz Sanhueza
10,702,983-4
Inmobiliaria Inversiones
y Asesorías Quantum Ltda.
78,094,800-0
Sale
Sale
Sale
Sale
5/02/09
20,000
185,00
3,698,000
23/03/09
307,902
185,00
56,961,870
1/06/09
66,000
194,99
12,869,340
14/07/09
307,901
200,19
61,638,957
Object of the
Transaction
Financial
Investment
Financial
Investment
Financial
Investment
Financial
Investment
Financial
Investment
Financial
Investment
Financial
Investment
Relationship with
the Company”
GEO Aguas Santiago Poniente
Risk Mangement and IR director
Taxation Manager
Taxation Manager
Related with Eduardo López Miller
Manager Latam
Taxation Manager
Related with Eduardo López Miller
Manager Latam
enersis 09
ANNUAL REPORT
ANNUAL REPORT
SHARE TRANSACTIONS
45
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
348
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PAGE
enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
348
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PAGE
enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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Dividend Policy
In accordance with General Rule No.283, 5), the following are the company’s
dividend policies for the years 2010 and 2009.
O1. DIVIDEND POLICY 2010
GENERALITIES
Pursuant to the stipulations of the Circular N° 687 as of February 13, 1987 of the
Superintendency of Securities and Insurances, the dividend policy of the Society’s
Board is exposed to Shareholders as described below.
DIVIDEND POLICY
The board intends to distribute an interim dividend against the net income for
2010 of up to 15% of the net income to September 30, 2010, as shown in the
financial statements at that date, payable in December 2010.
The board intends to propose to the ordinary shareholders meeting to be held in
the first four months of 2011, the distribution of a final dividend of an amount
equivalent to 60% of the net income for 2010.
The final dividend will be defined by the ordinary shareholders meeting to be
held during the first four months of 2011.
Compliance with the above program will be subject, in terms of dividends, to
the net income actually produced and also the results of the projections made
periodically by the company or the existence of certain conditions, as the case
may be.
PROCEDURE FOR THE PAYMENT OF DIVIDENDS OF ENERSIS S.A.
Enersis S.A. contemplates the following methods for the payment of interim or
final dividends in order to avoid the incorrect collection of these:
1. Deposit in a bank checking account whose holder is the shareholder.
2. Deposit in a bank savings account whose holder is the shareholder.
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DIvIDEND POLICy
48
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
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3. Dispatch of nominative check or bankers draft by registered mail to the address
of the shareholder recorded in the shareholders register.
4. Delivery of check or bankers draft at the offices of DCV Registros S.A., as the
registrar of the shares of Enersis S.A. or at the bank and its branches nominated
for this purpose and which will be stated in the notice published concerning the
payment dividends.
For these purposes, checking or savings accounts may be in any part of the
country.
It should be noted that the payment method chosen by each shareholder will be
used by DCV Registros S.A. for all dividend payments unless the shareholder states
in writing their intention to change and record a new method.
For shareholders who have not recorded a payment method, dividends will be paid
according to method No.4 above.
Should checks or bankers drafts be returned by mail to DCV Registros S.A., these
will be held in its custody until withdrawn or requested by the shareholder.
In the case of deposits in bank checking accounts, Enersis S.A. may request, for
security reasons, the checking of these by the corresponding banks. If the accounts
indicated by the shareholder are objected to, whether in the checking process or
for any other reason, the dividend will be paid by the method stated in point No.4
above.
Por otra parte, la Compañía ha adoptado y continuará adoptando en el futuro
todas las medidas de seguridad necesarias que requiere el proceso de pago de
dividendos, de modo de resguardar los intereses tanto de los accionistas como de
Enersis S.A.
DIVIDEND POLICY 2009 (1)
GENERALITIES
Pursuant to the stipulations of the Circular N° 687 as of February 13, 1987 of the
Superintendency of Securities and Insurances, the dividend policy of the Society’s
Board is exposed to Shareholders as described below.
DIVIDEND POLICY
The board intends to propose to the ordinary shareholders meeting to be held
in the first four months of 2010, the distribution of a final dividend an amount
equivalent to 60% of the net income for 2009.
The board also intends to distribute an interim dividend against the net income for
2009 of up to 15% of the net income to September 30, 2009, as shown in the
financial statements at that date, payable in December 2009.
enersis 09
ANNUAL REPORT
ANNUAL REPORT
DIvIDEND POLICy
49
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
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116
125
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The final dividend will be defined by the ordinary shareholders meeting to be held
during the first four months of 2010.
Compliance with the above program will be subject, in terms of dividends, to
the net income actually produced and also the results of the projections made
periodically by the company or the existence of certain conditions, as the case may
be.
Enersis S.A. stated the following through a Material Information report, Gen. Mgt.
52/2010, delivered to the SVS on February 26, 2010:
“In accordance with articles 9 and 10.2. of Law 18,045 and General Rule No.30
of the SVS, and duly authorized, I inform you as material information that a
board meeting of Enersis S.A. held today unanimously agreed to propose to the
ordinary shareholders meeting to be held on April 22, 2010, the distribution of a
final dividend for 35.11% of the Company’s net income, i.e. Ch$ 7.10 per share,
from which the interim dividend of Ch$2.45677 per share paid in December 2009
should be deducted. Consequently the amount to be distributed to shareholders
will be Ch$4.64323 per share with respect to the Company’s final dividend.
This will represent a total distribution of Ch$231,823,281,902 against the net
income for the year 2009.
The above modifies the effect of the current dividend policy which foresaw the
distribution of a final dividend of 60% of the company’s net income.”
03. DISTRIBUTABLE EARNINGS FOR THE YEAR 2009
Distributable earnings for the year 2009 are as follows:
Net Income for the year*
Distributable Earnings
*Attributable to Owners of the Company
Million Chilean Pesos
660,231
660,231
04. DIVIDENDS DISTRIBUTED DURING THE RECENT YEARS
The following chart disclose dividends per share paid during the recent years:
N° Dividend
72
73
74
75
76
77
78
79
80
Type
Of Dividend
Definitive
Definitive
Interim
Closing
Date
14/04/05
Payment
Date
20/04/05
28/03/2006
03/04/2006
19/12/2006
26/12/2006
Definitive
16/05/2007
23/05/2007
Interim
20/12/2007
27/12/2007
Definitive
24/04/2008
30/04/2008
Interim
13/12/2008
19/12/2008
Definitive
07/05/2009
13/05/2009
Interim
11/12/2009
17/12/2009
Chilean Pesos
per Share
Charged
to Year
0.416540
1.000000
1.110000
4.890330
0.531190
3.412560
1.539310
4.560690
2.456770
2004
2005
2006
2006
2007
2007
2008
2008
2009
enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
348
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ANNUAL REPORT
INvESTMENT AND FINANCING POLICy 2009
51
Investment and Financing Policy 2009
The ordinary shareholders meeting held on April 15, 2009 approved the
Investment and Financial Policy indicated below:
01. INVESTMENTS
A) AREAS OF INVESTMENT
Enersis will invest, as authorized by its bylaws, in the following areas:
• Contributions for investment in or for the formation of subsidiary or
associate companies whose activity is aligned, related or linked to any
forms or types of energy or the supply of public utilities or whose main raw
material is energy.
Investments consistent with the acquisition, exploitation, construction,
rental, administration, trading and disposal of any class of immovable assets,
whether directly or through subsidiary companies.
•
• Other investments in all kinds of financial assets, titles or securities.
B) MAXIMUM INVESTMENT LIMITS
•
The maximum investment limits for each area shall be the following:
•
Investments in its subsidiaries in the electricity sector, the amounts needed
for the subsidiaries to meet their respective corporate objects.
Investments in other subsidiaries such that sum of the proportions of the
fixed assets corresponding to each of these other subsidiaries does not
exceed the proportion of fixed assets corresponding to the shareholdings in
the subsidiaries in the electricity sector and of Enersis.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
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INvESTMENT AND FINANCING POLICy 2009
52
C) PARTICIPATION IN THE CONTROL OF THE AREAS OF INVESTMENT
In order to control the investment areas and in accordance with Enersis’s
corporate objects, the following procedure will be pursued wherever possible:
• At the ordinary shareholders meetings of the subsidiary and associate
companies, the appointment of directors corresponding to the Enersis
shareholding in that company shall be proposed, these preferably being
from among directors or executives of the company or its subsidiaries.
Investment, financial and commercial policies will be proposed to subsidiary
companies, as well as the accounting criteria and systems they should
follow.
•
• The management of the company subsidiaries and associates will be
supervised.
• Permanent control of debt limits will be maintained, to the point that
the investments or contributions implemented or that are planned for
implementation do not represent an unusual variation from the parameters
defined by the maximum investment limits.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
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ANNUAL REPORT
INvESTMENT AND FINANCING POLICy 2009
53
02. FINANCING
A) MAXIMUM DEBT LEVEL
The maximum level of debt of Enersis is a debt to equity plus minority interest
ratio of 2.2 times, based on the consolidated balance sheet.
B) MANAGEMENT POWERS FOR AGREEING DIVIDEND RESTRICTIONS
WITH CREDITORS
Dividend restrictions may only be agreed with creditors if previously approved by
a shareholders meeting (ordinary or extraordinary).
C) MANAGEMENT POWERS FOR GRANTING SECURITY TO CREDITORS
The company’s management may agree with creditors the granting of tangible
security or guarantees in accordance with the law and the corporate bylaws.
D) ASSETS ESSENTIAL FOR THE COMPANY’S FUNCTIONING
The shares representing Enersis’s shareholding in its subsidiary Chilectra S.A. are
considered essential assets for the functioning of Enersis.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
348
PREVIOUS
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PAGE
enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
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The Company’s Businesses
Business Structure
GENERATION
Endesa Chile
Endesa Costanera
Hidroeléctrica El Chocón
Endesa Fortaleza
Endesa Cachoeira
Endesa CIEN*
Emgesa
Edegel
(*) Transmission
DISTRIBUTION
Chilectra
Edesur
Ampla
Coelce
Codensa
Edelnor
Other Businesses
CAM
Synapsis
Inmobiliaria Manso de Velasco
01. HISTORICAL SUMMARY
On June 19, 1981, Compañía Chilena de Electricidad S.A. formed a new
corporate structure which gave birth to a parent company and three subsidiaries.
One of these was Compañía Chilena Metropolitana de Distribucion Electrica S.A.
In 1985, under the Chilean government’s privatization policy, the process of
transferring the share capital of Compañía Chilena Metropolitana de Distribucion
Electrica S.A. to the private sector was begun, ending finally on August 10,
1987. In this process, the pension fund management companies (AFPs), company
employees, institutional investors and thousands of small shareholders joined
the Company. Its organizational structure was based on activities or operative
functions whose results were evaluated functionally and its profitability was
limited by a tariff structure as a result of the Company’s exclusive dedication to
the electricity distribution business.
In 1987, the company’s board proposed forming a division for each of the parent
company’s activities. Four subsidiaries were therefore created to be managed
as business units each with its own objectives, thus expanding the company’s
activities toward other non-regulated activities but linked to the main business.
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This division was approved by the extraordinary shareholders meeting of November
25, 1987 which defined its new corporate objects. Compañía Chilena Metropolitana
de Distribucion Electrica S.A. thus became an investment holding company.
On August 1, 1988, as resolved at the extraordinary shareholders meeting of April
12, 1988, one of the companies born from the division changed its name to Enersis
S.A. At the extraordinary shareholders meeting of April 11, 2002, the company’s
objects were modified, introducing telecommunications activities and the investment
and management of companies whose businesses are in telecommunications and
information technology, and internet trading businesses.
In 1988, and in order to successfully meet its development and growth, the
company was split into 5 business units which in turn gave birth to five subsidiaries.
Of these, Chilectra and Río Maipo were responsible for electricity, Manso de Velasco
concentrated on electrical engineering and construction services, plus real-estate
management, Synapsis in the area of information technology and data processing,
while Diprel focused on providing procurement and commercialization of electrical
product services.
Today, Enersis is one of the biggest private electricity groups in Latin America in
terms of consolidated assets and operating income, achieved through steady and
balanced growth in its electricity businesses, generation and distribution, as well as
other related businesses.
The development of the electricity distribution business abroad has been
implemented jointly with its subsidiary Chilectra, a company that distributes
electricity in the Metropolitan Region of Santiago, Chile.
Its investments in electricity generation in Chile and abroad have been developed
mainly through its subsidiary Empresa Nacional de Electricidad S.A. (Endesa Chile).
In addition, it is involved in businesses that complement its principal ones through
majority holdings in the following companies:
Synapsis Soluciones y Servicios IT Ltda., that provides services and equipment related
to the computer business and data processing.
Inmobiliaria Manso de Velasco Ltda., committed to the real-estate business through
the integral development of real-estate projects and the administration, rental,
purchase and sale of the property assets of Enersis and its subsidiaries in Chile.
Compañía Americana de Multiservicios Ltda. (CAM), whose business is related to
trade and other operations in networks for public-utility companies, preferably
in utility metering service systems and as an agent in purchasing, importing and
exporting, as well as a trader and supplier of materials for Enersis subsidiaries and
third parties.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
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02. EXPANSION AND DEVELOPMENT
Enersis began its international expansion in 1992 through participating in different
privatization processes in Latin America, thus developing a significant presence in the
electricity sectors of Argentina, Brazil, Colombia and Peru.
1992
• On May 15, it acquired a 60% shareholding and control of the generator
Central Costanera, now Endesa Costanera, in Buenos Aires, Argentina.
• On July 30, it was adjudicated 51% of Empresa Distribuidora Sur S.A., Edesur,
an electricity distributor in the city of Buenos Aires, Argentina.
1993
•
In July, it bought the generator Hidroeléctrica El Chocón, located in the province
of Neuquén and Río Negro, Argentina.
1994
•
In July, Enersis acquired for 176 million dollars 60% of the share capital of
Empresa de Distribución Eléctrica de Lima Norte S.A., Edelnor, in Peru. It also
acquired Edechancay, another electricity distributor in that country, which was
later absorbed by the former.
• At the end of the year, Enersis acquired an additional 1.9% of the share capital
of Endesa Chile, increasing its shareholding to 17.2%.
1995
• On December 12, Enersis acquired an additional 39% in Edesur to give it
control of the company.
It also acquired the generator Edegel in Peru.
•
1996
• On February 15, Enersis reached a 25.28% shareholding in Endesa Chile and,
•
on April 15, Endesa Chile became a subsidiary of Enersis.
It invests in the sanitation market with the acquisition of Agua Potable Lo
Castillo S.A.
• On December 20, Enersis entered the Brazilian market with the acquisition of a
large block of shares in the previously-called Companhia de Eletricidade do Río
de Janeiro S.A., Cerj, a company that distributes electricity in the city of Río de
Janeiro and Niteroi, Brazil. Its present name is Ampla Energía e Serviços S.A.
• On December 20, it acquired a 99.9% shareholding in Central Hidroeléctrica de
Betania S.A. E.S.P, in Colombia.
1997
• On September 5, it acquired for 715 million dollars a 78.9% shareholding in
Centrais Elétricas Cachoeira Dourada, Brazil.
• On September 15, Enersis successfully took part in the capitalization of Codensa
S.A. E.S.P., acquiring a shareholding of 48.5% for 1,226 million dollars. This
company distributes electricity in the city of Bogotá and the department of
Cundinamarca, Colombia. It was also adjudicated 5.5% of Empresa Eléctrica de
Bogotá.
• On September 15, it acquired a 75% shareholding, for an amount of 951
million dollars, in Emgesa, a Colombian generator.
ENDESA S.A., a Spanish corporation, acquired 32% of Enersis.
•
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
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1998
• On April 3, Enersis again entered the Brazilian market, this time being
adjudicated 89% and control of Companhia Energética de Ceará S.A., Coelce,
for 868 million dollars. This company distributes electricity in the north-east of
the country, in the state of Ceará.
• On April 22, Enersis acquired a 100% shareholding in Aguas Cordillera,
Santiago, Chile.
• On December 28, Enersis was adjudicated 40% of the share capital of Esval, in
Chile’s 5th Region.
1999
•
ENDESA S.A., a Spanish company, became the controller of Enersis. Through a
public share offering, the multinational company acquired an additional holding
of 32% in Enersis which, together with the 32% already acquired in August
1997, gave it a total holding of 64%. This transaction, completed on April 7,
1999, involved an investment of 1,450 million dollars. As a result of the capital
increase made in 2003, this shareholding reduced to the present 60.62%
• On May 11, Enersis acquired 35% of Endesa Chile which, added to the 25%
already held, enabled it to obtain a 60% shareholding in the generator and
made it the parent company. It therefore consolidated its position as one of the
principal private-sector electricity groups in Latin America.
2000
• As part of its Genesis Plan strategy, the subsidiaries Transelec, Esval, Aguas
Cordillera and real-estate assets were sold for 1,400 million dollars.
2001
•
Large investments were made: 364 million dollars for increasing its shareholding
in Chilectra, in Chile; 150 million dollars in the acquisition of 10% of the share
capital of Edesur, in Argentina, a percentage that was held by the company’s
employees; 132 million dollars to increase its shareholding in Ampla, in Brazil;
23 million dollars to increase its shareholding by 15% in Río Maipo, in Chile,
and 1.6 million dollars to increase its shareholding by 1.7% in Distrilima, in
Peru.
2002
•
In Brazil, Central Termoeléctrica Fortaleza in the state of Ceará was adjudicated
to the Company. The commercial operation also began of the second phase of
the electricity interconnection between Argentina and Brazil, CIEN, completing
a transmission capacity of 2,100 MW between both countries.
2003
• Assets of 757 million dollars were sold, including the Canutillar generating plant
and the distributor Río Maipo in Chile.
2004
•
The Ralco hydroelectric plant began operations. This is located in Chile’s VIII
Region and contributes 690 MW of capacity.
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
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2005
• On April 18, the subsidiary Endesa Eco was formed to promote and develop
•
renewable energy projects like mini-hydroelectric, wind farm, geothermal, solar
and biomass, and to act as the depositary and trader of the emission reduction
certificates produced by these projects.
The subsidiary Endesa Brasil S.A. was formed with all the assets held in Brazil by
the Enersis Group and Endesa Internacional (now Endesa Latinoamérica): CIEN,
Fortaleza, Cachoeira Dourada, Ampla, Investluz and Coelce. It now has the IFC
(International Finance Corporation) as a shareholder, which contributed a sum
equivalent to 50 million dollars.
2006
• During February, the Termocartagena (142 MW) plant in Colombia, which
•
•
operates with fuel oil or gas, was bought for approximately 17 million dollars
In March, Enersis informed the SVS about the merger of Elesur and Chilectra by
the absorption of the latter by the former. The legal effects of this merger were
effective from April 1, 2006.
In June, Edegel and Etevensa were merged, the latter a subsidiary of Endesa
Internacional (now Endesa Latinoamérica) in Peru.
• On September 29, Endesa Chile, ENAP, Metrogas and GNL Chile signed an
agreement defining the structure of the liquefied natural gas (LNG) project in
which Endesa Chile participates with a 20% holding.
2007
•
•
•
In March, the company Centrales Hidroeléctricas de Aysén S.A. (HidroAysén)
was formed, to develop and exploit the hydroelectric project in the region of
Aysén, called the “Aysén Project”, which will imply 2,750 MW of new installed
capacity for Chile.
In April, the first phase of the San Isidro combined-cycle thermal plant, second
unit, with a capacity of 248 MW, was made available to Economic Load
Dispatch Center (CDEC-SIC).
In September, the merger was completed of the Colombian generating
companies, Emgesa and Betania.
• On October 11, ENEL S.p.A. and ACCIONA, S.A. took over control of
Enersis through ENDESA S.A. and Endesa Internacional, S.A. (now Endesa
Latinoamérica).
• During November, the Palmucho hydroelectric plant started up its commercial
operations. This plant is located at the foot of the Ralco plant dam on the Upper
Biobío in Chile’s 8th Region, and contributes 32 MW of capacity to the SIC.
• Canela was inaugurated on December 6, the first wind farm on the SIC.
Canela is located in the village of that name in the Region of Coquimbo and
contributes 18 MW to the SIC.
2008
•
In January, the second phase of the San Isidro II combined-cycle thermal plant
began its commercial operations, with an installed capacity of 353 MW.
• On March 24, the dual operation of Unit No.1 of the Tal-Tal thermal plant
•
began operations, with an installed capacity of 245 MW.
In June 27, the Ojos de Agua mini-hydroelectric plant began operations,
contributing 9 MW of installed capacity to the SIC.
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
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2009
• The companies ACCIONA, S.A. and ENEL S.p.A. announced an agreement
whereby ACCIONA, S.A. will directly and indirectly transfer to ENEL ENERGY
EUROPE S.L. a 25.01% shareholding in ENDESA, S.A. ENEL ENERGY EUROPE
S.L., controlled 100% by ENEL S.p.A., will thus hold 92.06% of the share
capital of ENDESA, S.A.
• On June 25, the agreement between ENEL S.p.A. and ACCIONA, S.A. came into
effect whereby the ENEL Group became the controller of 92.06% of the share
capital of ENDESA, S.A.
• On October 9, Endesa Chile acquired 29.3974% of its Peruvian generation
subsidiary Edegel. The shares were acquired at market price from Generalima
S.A.C., a company which in turn is a subsidiary of Endesa Latinoamérica S.A.
Endesa Chile thus now holds directly and indirectly 62.46% of the shares of
Edegel.
• On October 15, in a transaction carried out on the Lima Stock Exchange, Peru,
Enersis S.A. acquired 153,255,366 shares, representating 24% of the share capital,
of its Peruvian subsidiary Empresa de Distribución Eléctrica de Lima Norte S.A.A.
(Edelnor) at a price of 2.72 soles per share, which represented a total cost of
145,753,327 dóllars. This purchase was made from Generalima S.A.C., a Peruvian
subsidiary of Endesa Latinoamérica S.A., the direct parent of Enersis. With this
transaction, the direct and indirect shareholding of Enersis S.A. in Edelnor rose from
33.53% to 57.53%. Enersis S.A. already controlled Edelnor prior to this transaction
so Edelnor was already a subsidiary of Enersis S.A.
03. INVESTMENT PLAN
The principal objective of Enersis is to maximize the economic value of its equity
through stable growth, based on rigorously evaluated and managed electricity
businesses. Compliance with this objective is based on an investment strategy
focused on increasing the economic value of the subsidiary and associate companies,
and the acquisition of new companies.
Enersis has based its strategy on offering the best electricity service in Latin America,
making each of our operations profitable, maintaining a solid financial position,
increasing the value for our shareholders and evaluating the best growth options.
TO OFFER THE BEST ELECTRICITY SERVICE IN LATIN AMERICA
Quality of service is an important matter for the organization. We are aware that
we supply an essential service for the social and economic development of the
communities where we operate. We therefore force ourselves every day to be more
effective and to know our customers in order to offer solid solutions in line with their
needs. As a company, we have an attentive organization constantly in contact with
the market and its different players.
In practice, we have reduced the number of power cuts per year, their duration and
the reliability of the networks.
At the same time, one of our main challenges has been to contribute to the
security of electricity supplies in the five countries where we operate, accompanying
the growth in demand with a mix of generation compatible with care for the
environment.
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TO MAKE EACH OF OUR OPERATIONS PROFITABLE
During 2009, our company continued to improve the returns of the principal
subsidiaries in both the electricity generation and distribution businesses. For
example, the returns on operating revenues in both lines of business showed
important improvements, the result of the constant application of improvements to
production processes, as a result of the constant investigation carried out.
TO MAINTAIN A SOLID FINANCIAL POSITION
Maintaining healthy ratios and the natural match of currencies between cash
flows and third-party obligations, plus hedging against fluctuations in interest and
exchange rates, together with strong liquidity and access to local and international
markets, has been indispensable for having a better and healthier financial structure.
The international credit rating of Enersis, according to S&P in February 2010, was
increased to BBB+ (stable) from BBB (stable), Moody´s in 2009 maintained it at Baa3
(stable) and Fitch improved the rating from BBB (stable) to BBB+ (stable), leaving
the rating at investment grade for all international agencies. Similarly, the national
rating agency Feller Rate maintained the local rating at AA- (stable), while the Fitch
improved the rating from AA- (stable) to AA (stable).
TO INCREASE VALUE FOR OUR SHAREHOLDERS
During 2009, our share price on the local market showed a rise of 40.2% over
December 2008. In addition, the value of the company over the last five years has
grown at a weighted 20%. This is the result of the better market perception of
the diversification of the businesses managed by Enersis. In fact, our Group has
successfully capitalized on the growth shown by the economies of the five countries
where we operate.
INVESTMENT OPPORTUNITIES
Enersis is constantly evaluating the best growth options in both lines of business
and in the countries where it currently operates. The company analyzes the different
alternatives rigorously, taking into account the contribution that these could make to
the points commented on above.
A key factor in this matter is to make investments that require significantly
the experience, management skills and operating capacities of Enersis and its
subsidiaries. This requirement demands making investments in companies where a
clear influence can be exercised in their management and operation, and also the
power to approve or reject their investment projects.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
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116
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
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04. FINANCIAL ACTIVITIES
The financial activities of the Enersis Group have always been an important and priority
matter. Work has been carried out on improving the financial profile of both Enersis
and its subsidiaries, with capital and debt issues carried out on the best conditions
prevailing in the market.
The following are among the most relevant financial events in the history of Enersis:
Between 1988 and 1992, Enersis’s shares began to be traded on the local stock
exchanges and, on October 20, 1993, on the New York Stock Exchange (NYSE),
through ADSs with the ticker number ENI.
In February 1996, Enersis made a second issue of shares on both the local and
international (ADS) markets. It also issued bonds in the United States for a total amount
of 800 million dollars, with maturities in 2006, 2016 and 2026.
In February 1998, Enersis again increased its capital and issued convertible bonds
amounting to 200 million dollars.
In 2000, it made a further capital increase of 525 million dollars approximately. On
December 17 the same year, the shares of Enersis began to be traded in the Latin
American Securities Market (Latibex) of the Madrid Stock Exchange, with the ticker
number XENI.
Between June and December 2003, Enersis made a new capital increase which
strengthened the Company’s equity base by more than 2,000 million dollars.
Between November 2004 and December 2006, Enersis signed two committed and
unsecured revolving lines of credit through its old branch in the Cayman Islands. In the
same period, Endesa Chile, through its Cayman Islands branch, signed three committed
revolving lines of credit without senior collateral. These credit agreements were
structured with various banks for a total sum of 550 million dollars for Enersis and 650
million dollars for Endesa Chile, and have maturities falling between 2009 and 2011.
In June 2008, Endesa Chile signed a renewable unsecured syndicated credit
agreement for 200 million dollars and a loan agreement for 6 years for 200 million
dollars with the same banks. The latter facility was used to refinance part of the July
2008 maturities of the Yankee bonds for 400 million dollars.
In October the same year, amendments were signed for the two lines of credit of
Enersis and the three of Endesa Chile in order to significantly reduce the covenants
in those agreements. The principal changes included: an increase in the level of
materiality of cross defaults to 50 million dollars coupled with a requirement of a
payment in penalty for that same amount; a reduction in the number of financial
covenants; a more comfortable leverage covenant for Endesa Chile; a modification
of the documentation to reflect the adoption of IFRS, and other changes in
definitions and conditions that provide greater flexibility for both companies.
During 2008 there were also financial transactions, both refinancing and new issues
and hedges, by the foreign subsidiary companies for a total equivalent to 2,209
million dollars of which 125 million dollars were by Argentina, 594 million dollars by
Brazil, 793 million dollars by Colombia and 697 million dollars by Peru.
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DOMESTIC FINANCE IN 2009
During 2009, the domestic bond program for 12.5 Unidades de Fomento remained
open, which Enersis registered in the Securities Register of the SVS in February. Enersis
in November 2009 repaid on its contracted payment date the balance outstanding of
150 million dollars on Enersis’s revolving credit with BBVA as agent bank, with which
this financing was fully repaid.
The revolving credit of 200 million dollars agreed by Enersis in 2006, with The Bank
of New York as agent bank, in order to provide the Company with liquidity, expired in
December 2009 without having been used. Enersis therefore contracted two revolving
lines of credit in its place for a total equivalent to 200 million dollars, taken in equal
parts from both the international and local banking markets.
With respect to the financing of Endesa Chile, this maintained unutilized the sum of
200 million dollars of revolving credit corresponding to the undrawn portion of the
financing agreed in June 2008 with Bancomer as agent bank for 400 million dollars.
The two revolving credits of Endesa Chile, whose agent banks are Caja de Madrid and
The Bank of Tokyo Mitsubishi, which were fully drawn at the end of 2008 for a total
of 450 million dollars, remained in the same condition during 2009.
Regarding the international bonds of Endesa Chile, 149 million dollars were repaid
in February 2009 corresponding to the year of the put option of the Yankee bonds
for 220 million dollars. Later, in April, the Yankee bonds for 400 million dollars
maintained by the Company since April 1999, were repaid on their maturity date.
With respect to the revolving credit for 200 million dollars contracted by Endesa
Chile in 2006, together with the revolving facility of Enersis, arranged in order
to maintain a suitable level of liquidity for both companies, these also expired in
December 2009. Endesa Chile replaced this by several revolving credits in the local
banking market for a total equivalent to 100 million dollars, with which Enersis
and Endesa Chile remain with 200 and 300 million dollars respectively of credit
availability.
In addition, Enersis and Endesa Chile have at the close of 2009 available credit
facilities for use in the domestic market for an equivalent of 321 and 229 million
dollars respectively.
In January 2009, various commercial paper lines were registered in the Securities
Register of the SVS for Enersis and Endesa Chile, for a maximum total amount of
200 million dollars for each company; these remained unutilized at the end of 2009.
Regarding other transactions, Enersis and Chilectra received in October 2009
an approximate total of 86 million dollars from the sale of shares on the Bogotá
Securities Exchange corresponding to 2.473% of Enersis Group’s shareholding in
Empresa de Energía de Bogotá (EEB).
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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On October 9, 2009, Endesa Chile acquired on the Lima Stock Exchange a block
of shares representing 29.3974% of the capital of its energy-generating subsidiary
in Peru (Edegel). This transaction cost 375 million dollars with which the direct and
indirect shareholding of Endesa Chile in Edegel rose to 62.46% of its share capital.
Also, on October 15, 2009 Enersis acquired on the Lima Stock Exchange a block of
shares representing 24% of the capital of its energy-distribution subsidiary in Peru
(Edelnor). This transaction cost 146 million dollars with which the direct and indirect
shareholding of Enersis in Edelnor rose to 57.53% of its share capital.
Adicional a los contratos de créditos rotativos señalados y renovados en diciembre
de 2009 como una forma de asegurar la liquidez tanto en Enersis como en Endesa
Chile, ambas compañías con sus filiales en Chile terminaron con una caja disponible
de 563 millones de dólares, correspondiendo a Enersis la suma de 89 millones de
dólares y a Endesa Chile la de 474 millones de dólares.
In addition to the revolving credit facilities stated and renewed in December 2009, as
a way of assuring liquidity for both Enersis and Endesa Chile, both companies with
their subsidiaries in Chile ended the year with available cash of 563 million dollars,
with Enersis holding 89 million dollars and Endesa Chile 474 million dollars.
The consolidated financial debt of Enersis at December 2009 was 8,208 million
dollars. Of this, 4,036 million dollars corresponded to Endesa Chile consolidated
and 4,172 million dollars to Enersis and its foreign subsidiaries. This debt mainly
consisted of bank debt, and domestic and foreign bonds. The consolidated cash
position of Enersis closed at 2,226 million dollars, thus the net debt amounted to
5,983 million dollars.
With respect to financing agreements, amendments to the two syndicated loans
of Enersis and the four of Endesa Chile, contracted between 2004 and 2008, were
signed in June 2009 for an available amount of 1,600 million dollars, in order
to reflect the adoption of International Financial Reporting Standards (IFRS) and
retaining the same level of financial covenants that existed prior to the change in
accounting standard.
During July, Enersis and Endesa Chile amended the indentures covering all the
Yankee bonds series issued on the American market, which showed total principal
outstanding 1,519 million dollars. The effect of the amendments is to limit the
application of the cross-default, and bankruptcy and insolvency, clauses to just the
parent companies (Enersis and Endesa Chile) and some Chilean subsidiaries, leaving
aside all reference to the international subsidiaries of the parents.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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INTERNATIONAL FINANCE IN 2009
The effects of the global financial crisis that began in 2008 continued during the first
months of 2009, reaching its deepest level in March 2009. Despite this, the foreign
subsidiaries of the Enersis Group continued to refinance their debt at longer terms
and even improve interest rates. They have also continued to seek financing in local
currency to the extent that their operating cash flows are in those currencies and that
the markets permit it on reasonable terms.
Financial transactions were carried out in 2009, both refinancing and new
financing and hedges, in the foreign subsidiaries for a total equivalent in dollars
to approximately 1,540 million dollars, of which 208 million dollars came from
Argentina, 492 million dollars from Brazil, 633 million dollars from Colombia and 207
million dollars from Peru.
The following were among the more important financial transactions during 2009:
ARGENTINA
Costanera refinanced all its 2009 maturities of approximately 76 million dollars
with bank loans. These include the refinancing 8.6 million dollars of maturities with
Credit Suisse. Chocón signed a syndicated loan for 31 million dollars at 3 years which
enabled it to refinance its short-term debt ahead of time, redenominating a large part
in local currency, in accordance with the indexation of its flows, and to extend the
average life.
It also arranged an interest-rate swap for 2.5 years for 30 million dollars to fix the
interest rate on part of the debt. Edesur, for its part, refinanced in advance its 2010
debt maturities, for approximately 46 million dollars, which enabled it to extend the
average life of its debt and transfer all its debt into local currency, in line with the
indexation of its flows.
BRAZIL
Ampla, issued debentures for 146 million dollars at the end of the year in two series,
at 3 and 6 years, whose proceeds were used to refinance short-term maturities.
Coelce in April issued commercial paper for approximately 106 million dollars at one
year to refinance short-term debt, in anticipation of an issue of long-term bonds
(debentures). In August, it then issued debentures for 130 million dollars to repay in
advance the commercial paper. It also contracted a committed line of credit for 50
million dollars in order to provide liquidity for the company in case of need.
COLOMBIA
In the case of Codensa, the most important operation in 2009 was the sale of the
Codensa Hogar business portfolio. It received approximately 275 million dollars for
this operation. With respect to refinancing, Codensa placed commercial paper for 18
million dollars to refinance short-term maturities, and issued domestic bonds for 31
million dollars to finance the purchase of Electrificadora Cundinamarca. In generation,
Emgesa placed bonds for 309 million dollars whose proceeds were used to refinance
short-term maturities.
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PERU
Edelnor placed domestic bonds for approximately 38 million dollars at terms of
between 3 and 6 years, used to refinance debt maturities. It also contracted bank
debt for 77 million dollars. Edegel issued dollar and local-currency bonds for 34
million dollars, with terms of between 3 and 6 years, whose proceeds were used to
refinance short-term maturities. It also renegotiated bank loans during the year for
42 million dollars which enabled it to reduce the interest rate and extend the term.
HEDGING POLICY
EXCHANGE RATE
The Group’s exchange rate hedging policy is based on cash flows and its objective
is to keep a balance between flows indexed to foreign currency (US$) and the levels
of assets and liabilities in that currency. During 2009, Enersis’s financial transactions
enabled it to maintain a level of dollar liabilities matched to the expected flows in
that currency.
As part of the policy, Endesa Chile contracted forwards for 134 million dollars
to cover the exchange risk on future disbursements for the construction of the
Bocamina II plant that were in UF, transferring them to dollars which is the currency
in which the subsidiary’s revenues are denominated. It also contracted exchange
rate forwards for 332 million dollars to cover flows in different currencies of the
subsidiaries in Latin America.
INTEREST RATE
The Group’s policy consists of maintaining hedge levels, total fixed-rate debt and/
or hedge over total net debt, within a band of more or less 10% with respect to the
hedging level established in the annual budget. During 2009, interest rate swaps
were therefore contracted for 200 million dollars to fix Libor. The consolidated fixed-
rate and hedged debt to net debt was 36.2%.
International Credit Risk Classification
S&P
Moody’s
Fitch
BBB+, Stable
Baa3, Stable
BBB+, Stable
Local Credit Risk Classification
Feller Rate
Fitch
Shares
Bonds
1st Class Level 1
1st Class Level 1
AA-, Stable
AA, Stable
CREDIT RATING
On November 9, 1994, Standard and Poor’s and Duff & Phelps rated Enersis for the
first time as BBB+, i.e. an investment grade company. Later, in 1996, Moody’s rated
the company’s foreign currency long-term debt as Baa1.
Over time, most of the credit ratings have varied. All are now investment grade with
stable outlook, based on the diversified asset portfolio, the liquidity and suitable
debt service policies.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
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The credit profile of Enersis has continued to strengthen in 2009, with progress
in the liquidity position and reductions in leverage. The positive financial and
operational profile perspective of Enersis has been reflected in an improvement in
January 2010 by Fitch Ratings in our corporate rating for foreign and local currency
debt, as well as for the Yankee bonds, from BBB to BBB+. There was a similar
improvement in the domestic rating from AA- to AA. Along the same lines, the
rating agency Standard and Poor’s raised the corporate and senior debt credit rating
of Enersis in February 2010 to BBB+ from BBB, with stable outlook.
The new ratings are supported by the Company’s diversified portfolio of assets,
strong credit parameters, a satisfactory debt composition and ample liquidity.
The geographic diversification of Enersis in Latin America provides a natural
hedge against the different regulations and climatic conditions, and its operating
subsidiaries remain financially strong and have a position of leadership in their
markets.
PROPERTIES AND INSURANCE
The company owns some equipment and substations in the Santiago Metropolitan
Region. The company holds insurance against risks such as fire, lightning,
explosions, malicious acts, earthquakes, floods, alluvium and others.
REGISTERED NAMES
The corporation holds the following registered trade names: Enersis, EnersisPLC e
Internet a la velocidad de la luz Enersis PLC.
05. SUPPLIERS, CUSTOMERS AND IMPORTANT COMPETITORS
As Enersis is a company operating mainly in the area of generation and distribution,
it has opted to consider the suppliers, customers and important competitors of its
principal subsidiaries in Chile, e.g. Endesa Chile and Chilectra.
Consequently, it was established that the suppliers, customers and important
competitors for the Company are: Metro S.A., CGE Distribución, Gerdau AZA S.A.,
Colbún, AES Gener, Pacific Hydro, Ingenieria y Construcción Tecnimont S.A., Sigdo
Koppers S.A., Ingeniería y Construcción SES Chile S.A., Chilquinta S.A., Minera los
Pelambres S.A., Compañía Minera Doña Inés de Collahuasi S.A., Saesa and Emel.
There is no degree of significant dependence with respect to the different customers
and suppliers mentioned above.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
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RISk FACTORS
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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Risk Factors
Given the nature of the businesses, as well as the geographical diversification of our
investments, there are a number of risk factors that could threaten the stability of our
businesses in any of the countries where we operate.
However, our long experience in the electricity business in the region has taught us to
look for and apply all possible preventive measures aimed at avoiding or moderating
unforeseen events or the damage that outside issues could cause to our business.
Even though risk factors often appear in a combined form or have correlated effects,
for the purposes of this Annual Report only, we present the following main structure:
FLUCTUATIONS OF ECONOMIC CONDITIONS IN LATIN AMERICA
All our operations are located in Latin America, so our consolidated revenues are
sensitive to the performance of the region’s economies. If economic trends, both
regional and global, were to have a negative impact of relative importance in any of
the five countries where we operate, our financial condition and operating results could
suffer a negative impact.
The economic conditions in emerging countries have a certain degree of influence
on securities and financial markets in Latin America. It is possible that the events that
occurred in those countries could have an adverse impact on the securities and financial
markets of Chile, affecting the price of our shares to some extent.
SUBISIDIARIES’ CASH FLOWS DEPENDENCE
We do not have investments in any significant assets apart from the shares in our
affiliates. In order to repay our debts, therefore, we rely on the dividends, loans, interest
payments, capital reductions and other payments which we receive from our subsidiary
and associate companies, and from the proceeds of issues of new securities.
The capacity of our subsidiaries to pay dividends, interest, loans and provide other
distributions is subject to certain legal limits such as dividend restrictions, fiduciary
duties, contractual restrictions and exchange controls that can be imposed in any of the
five countries where our subsidiaries operate.
Historically, we have been able to access the cash flows of our Chilean subsidiaries, but
not always with those of our non-Chilean subsidiaries due to government regulations,
strategic considerations, economic conditions and credit restrictions.
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REGULATORY
All legislations that regulate the electricity sector in every country impose obligatory
regulations. However, there are interpretations, and also regulatory provisions of the
regulatory authority that are adapted to the complexity of the system and can affect
general business conditions.
HIDROLOGY
A substantial part of the Company’s business relates to hydroelectric generation, which
means that the company is dependent on hydrological conditions in the zones and countries
where it operates. The Company has designed a commercial policy for reducing the risk
related to extreme drought conditions, considering sale commitments according to the
capacity of its generating plants in a dry year, preferring its best contracts and customers and
including risk clauses in some contracts with non-regulated customers.
MARKET PRICE FLUCTUATIONS OF CERTAIN COMMODITIES
We have an economic exposure with respect to fluctuations in the market prices of certain
basic products, because of the long-term energy sales contracts we have signed. Our
generating subsidiaries have substantial obligations as sellers under long-term energy sales
contracts, with prices that vary according to the exchange rate, the electricity market,
market prices of the principal inputs such as natural, oil, coal and other energy-related
products. It is impossible to introduce indexation formulas that correlate exactly the
changes in the market prices of these commodities, the exchange rate and the market
price of electricity with our production costs. There could therefore be moments when the
price we receive under these contracts is below the spot market price. We do not enter into
commodity derivative instrument contracts in order to hedge our exposure to these price
fluctuations. However, we are constantly analyzing and checking the convenience of this
type of hedge, so we cannot state whether we would use them in the future.
DEFICIT OF NATURAL GAS
The natural gas deficit in Argentina continues to have a negative impact on some of our
Argentine generating plants that use natural gas as their fuel.
This deficit has meant that Argentina has suffered from gas supply cuts to the combined-
cycle plants, forcing them to operate with oil. This causes an increase in operating costs
which, although financed by the whole system, finally reduces the margin on our contracts
and sales on the spot market.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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51
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In Chile, cuts in gas supplies from Argentina have been replaced by oil, thus affecting
the volume of production and operating costs of the Taltal plants on the SING, and San
Isidro and San Isidro II on the SIC. However, starting in September 2009, the commercial
operation of the Quintero re-gasification terminal has enabled us to reduce the large share
of oil in the energy matrix of the SIC, impacting positively on the Company’s results by
reducing its production costs. Similarly, the Mejillones LNG project will introduce this fuel on
the SING from the first quarter of 2010.
In Peru, there has been a deficit in the transportation capacity since mid 2008 of gas from
Camisea, a situation that has led to higher supply costs for the system. There is a plan
under way to expand the gas pipelines, which will substantially increase the transportation
capacity to Lima until 2011. However, this could be insufficient for finally resolving the
deficit in view of the strong pressure exerted by the growth in internal demand for gas.
EXHANGE RATE
The Chilean peso and other currencies with which Enersis and its subsidiaries operate are
subject to volatility against the US dollar. Historically, a large part of our consolidated debt
has been contracted in US dollars and, despite an important portion of revenue being
indexed to that currency, the match might not be perfect and could generate adverse
effects through fluctuations of the local currencies against the dollar.
REFINANCING RISK
Enersis, Endesa Chile and their foreign subsidiaries often approach the domestic and
international financial markets when they have to refinance, so a financial crisis could
negatively affect them. In this scenario, the demands of creditors could be greater, both
with respect to higher rates and more restrictive agreements.
Enersis and Endesa Chile have debt that is subject to financial covenants and other
standard contractual restrictions, mainly related to the debt to EBITDA and debt to equity
ratios. In addition, a portion of the debt of Endesa Chile has cross-default clauses which
could be triggered by the default of other loans of the parent or some subsidiaries, whose
principal exceeds 50 million dollars, measured individually. Should these debts become
payable because of default under those covenants or through cross default, both Enersis
and Endesa Chile could have difficulties in compliance with these payments.
INTERVENTION BY THE AUTHORITIES
On occasions, the state authorities in Latin American countries change their monetary,
credit and tariff policies, among others, in order to influence the direction of the economy.
Changes in such policies in the past or which might occur in the future with respect
to tariffs, exchange controls, regulations and taxes could have an adverse effect on
commercial activity and the operating result of Enersis at the consolidated level.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
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ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
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Bogotá
Lima
Brasilia
Santiago
Buenos Aires
ARGENTINACHILEBRAZILPERUCOLOMBIA
z
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THE ELECTRICITy BUSINESS By COUNTRy
73
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
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The Electricity Business by Country
01. ELECTRICITY GENERATION
Electricity generation is mainly carried out through our subsidiary Endesa Chile.
In this business, the Group has subsidiaries operating in Chile, Argentina, Brazil,
Colombia and Peru.
In all, the installed capacity amounted to 14,850.96 MW as of December 2009
and the consolidated electricity production was 58,349 GWh, while energy sales
totaled 66,728 GWh.
In the electricity industry, the segmentation of the business between hydroelectric
and thermal generation is natural as the variable costs of generation are different
for each form of production. Thermal generation requires the purchase of fossil
fuels and hydroelectric generation needs water from reservoirs and rivers.
58% of our consolidated generating capacity comes from hydroelectric sources
while the 41% is thermal and 1% wind sources.
The commercial policy that the generator defines is therefore important for the
business.
02. ELECTRICITY TRANSMISSION
For the Enersis Group, the electricity transmission business consists of the
2,100 MW interconnection line between Argentina and Brazil, through CIEN, a
subsidiary of Endesa Brasil.
03. ELECTRICITY DISTRIBUTION
Our electricity distribution business is carried on through Edesur in Argentina,
Ampla and Coelce (owned by Endesa Brasil) in Brazil, Chilectra in Chile,
Codensa in Colombia and Edelnor in Peru. Our principal subsidiaries and related
distribution companies sold 63,418 GWh during 2009.
Edesur, Ampla, Coelce, Chilectra, Codensa and Edelnor serve the principal cities
of Latin America and provide an electricity service to over 12.8 million customers.
These companies face a growing demand for energy, obliging them to invest
constantly, both due to natural growth and for the maintenance of their facilities.
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Argentina
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
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Buenos AiresGenerationDistributionMendozaCórdobaNeuquén CostaneraTypeInstalled CapacityThermal 2,324 MWEdesurEnergy SalesCustomersEnergy Losses ArroyitoTypeInstalled CapacityHydro 128 MW El ChocónTypeInstalled CapacityHydro 1,200 MW 16,026 GWh2.3 million10.5%
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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Argentina
01. INDUSTRY STRUCTURE
Law 24,065 of January 1992, the Argentine Electricity Law, divides the electricity
industry into three sectors: generation, transmission and distribution.
The generation sector is organized on a competitive basis with independent producers
that sell their production on the Wholesale Electricity Market (MEM) or under private
contracts with other parties.The transmission sector comprises companies that
transport electricity from the generation points to the consumption points, on the basis
of a free-access system. The distributors can buy the energy under contracts or on
the MEM.
The Argentine electricity dispatch system includes Compañía Administradora del
Mercado Mayorista Eléctrico S.A. (CAMMESA) which is responsible for the dispatch
and which coordinates the most economic operation of the system. Ente Nacional
Regulador de Electricidad (ENRE) is responsible for controlling and ensuring compliance
with the sector’s regulations. The Secretariat of Energy (SE) is the entity responsible
for setting the policies, regulations and procedures governing the energy sector,
particularly electricity.
The generation companies sell their energy to distribution companies and other
large customers under contracts through the MEM. There are three kinds of prices
for valuing energy transactions: contractual, seasonal and spot. The seasonal prices,
calculated by CAMMESA every six months and approved by the Secretariat of Energy,
are those that have to be paid by distributors that buy on the wholesale market.
Finally, the spot price is used to value transactions between generators and/or non-
regulated customers to cover their generation deficits or surpluses compared to their
contractual commitments.
Apart from the remuneration for energy sales, the generators receive a payment for
capacity based on that made available to the system at certain times of the day and on
the base capacity calculated by CAMMESA for each annual May-April period.
Following the crisis of 2001, which led to the Economic Emergency Law in 2002 and
which, with the last extension, continued in effect until December 2009, the electricity
market had to face a series of modifications introduced by the government for ending
convertibility and avoiding tariff increases.
Among the principal measures was Resolution 240/2003, which defines a maximum
spot price and sets the operating costs coverage for the thermal plants that operate
with oil-derivative fuels; and Resolution 406/2004 which gives priority to the payments
that CAMMESA should make to generators as a function of the proceeds obtained
from the regulated tariffs paid by the distributors. These measures were originally
provisional but are still in force.
As of December 2009, the installed capacity of the MEM was 27,044 MW, of which
38.9% related to hydroelectric capacity. Peak demand in 2009 was 19,566 MW and
annual consumption reached 104,592 GWh. Demand declined by 1.3% compared
to 2008.
Other important operators in this market are Sadesa, AES, Pampa Energía, Pluspetrol
and Petrobras.
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ELECTRICITY MARKET
Following the market interventions and the difficulty in promoting investment
in infrastructure by the private sector, the Secretariat of Energy has published
a series of regulations for promoting and facilitating the installation of new
generation projects in the short term. These include:
• Res. MEYP Nº 728/2004, art. 8, which states that special treatment will be
given to infrastructure works identified as critical for the country’s economic
development, including those for the generation, transmission and
distribution of electricity.
• Res. S.E. N° 712/2004, in the first instance, and then Res. S.E. N°564/2007,
which called on MEM private creditor participants to indicate formally
their decision to take part in the creation of the fund for investments
necessary to increase the supply of electricity on the wholesale electricity
(called FONINVEMEM), by the contribution of 50% of the sales settlements
between 2005 and 2007, for a term to be defined.
With these funds, two combined-cycle thermal plants have started
operating: Central Termoeléctrica Manuel Belgrano and Central
Termoeléctrica José de San Martín, which entered the MEM operating in
open cycle in the first half of 2008, with an installed capacity of 1,125 MW.
On January 7 and February 2, 2010 respectively, the combined cycles of
Central Termoeléctrica Manuel Belgrano and Central Termoeléctrica José de
San Martín started operations, with which both plants reached a total of
1,700 MW of installed capacity.
• Res. S.E. N° 1215/2007, N° 1359/07, N° 2017/07 and N° 2018/07, which
declared new works presented as “Critical Infrastructure Works”.
• Res. S.E. N° 220/2007 (extended by Res. 200/2009) and N° 724/08, which
•
enabled CAMMESA to sign supply contracts at special prices that permit the
installation of new generation plants or the expansion or re-powering of
existing units.
Res. S.E. N° 762/2009, which creates the national program of hydroelectric
works and whose main objective is to motivate and sustain the construction
of hydroelectric plants, whose time schedule will be necessary for
completing all the works incorporated in that program.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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21
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TRANSMISSION AND DISTRIBUTION
The transmission and distribution companies have been renegotiating contracts
since 2005 and despite tariffs being adjusted partially and provisionally, the final
tariffs were still pending as of December 2008.
Although therefore the concepts that define energy prices in the Argentine
Electricity still remain current, their implementation reflects the intervention of
the authorities to reduce the remuneration of all electricity companies.
During 2006, our subsidiary Edesur entered into a renegotiation agreement
of the concession contract which concluded in 2008 when the federal
government imposed two tariff increases, one effective in July and the other in
October, 2008.
GAS MARKET
With respect to the supply of natural gas to the system:
• The Argentine government has introduced a series of measures for
increasing the domestic supply of natural gas, including promoting an
increase in domestic production, encouraging new investment in exploration
and production, promoting expansion in energy transport and distribution,
and signing agreements for the import of natural gas. With respect to the
latter, the governments of Bolivia and Argentina in October 2006 signed a
natural gas supply contract between YPFB and Enarsa until the year 2026.
While the contracted volumes for the first years are low, of around 7.7
MMm3/d, to make them compatible with existing carrying infrastructure,
Bolivia in 2007 and 2008 showed difficulties in complying with its supplies
to Argentina, while Brazil was increasing its contractual demand, as
occurred in the second half of 2008, when average imports of gas from
Bolivia were around 2.0 MMm3/d. For the following years, the contract
between Bolivia and Argentina contemplates larger volumes until reaching
27.7 MMm3/d from 2010.
In May 2008, Enarsa began to bring liquefied natural gas (LNG) in re-
gasificaion ships from Trinidad y Tobago to Bahía Blanca, which has meant
average imports of about 4 MMm3/d. LNG imports continued during 2009,
reaching a volume of around 770 MMm3 in the winter season.
•
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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• CAMMESA supplied liquid fuel to the MEM thermal plants in order to
alleviate the gas supply restrictions o that significantly affected the plants
during the winter.
• Regarding supplies for the plants in Argentina, it is important to note that
following the coming into effect of Resolution S.E. 599/2007, whereby the
proposed agreement between natural-gas producers and the government
was ratified, tending to meet Argentine domestic demand during the period
2007-2011, negotiations began with various producers in order to contract
supplies for Central Costanera through monthly supply agreements.
In July 2009, the gas producers signed an agreement with the Ministry
of Planning which granted a tariff revision that, in the case of gas for
the electricity sector, implied a rise of around 30% between July and
December 2009.
•
EXPORT AND IMPORT OF ELECTRICITY
In order to give priority to the domestic market supply, the Secretariat of Energy
adopted additional measures that limited electricity exports. Resolution SE Nº
949/2004 established measures allowing participants to export and import
energy under restricted conditions. These restrictions prevented generators from
meeting their export commitments.
INCENTIVES PROGRAM
In order to provide incentives for the installation of new capacity on the SIN,
Resolution SE Nº 1.281/2006 created the Energy Plus Service which consists of
the offer of new electricity capacity for meeting the growth in demand over
the “Base Demand”, which is the electricity demand in 2005. The Energy Plus
Service, which began on November 1, 2006, is provided by electricity generators
that install new capacity or that offer already-existing generating capacity but
which was not connected to the SIN in Argentina. Every large consumer having
a greater demand than its base demand may contract the excess with the
Energy Plus Service. The price of the contracts must be approved by the relevant
authorities. Demand that cannot be covered by a Energy Plus Service may
request CAMMESA to arrange a tender to satisfy this demand.
REGULATION FOR THE PROMOTION OF ELECTRICITY
INFRASTRUCTURE PROJECTS
Law 26,095 and Decree 1,216/2006 imposed charges that should be paid by
the end users of electricity and natural gas in order to finance new infrastructure
projects, to complete new investments in the electricity sector, and to expand
natural gas and electricity transportation capacity. The federal state has also
adopted some regulations for promoting their rational and efficient use.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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ENVIRONMENTAL REGULATION
Electricity installations are subject to federal and local laws and regulations,
including Law 24,051 or the Hazardous Waste Elimination Law and its
complementary regulations. Certain reporting and monitoring obligation, and
emission standards, are imposed on the electricity sector. Breaches of these
requirements enable the government to impose fines like the suspension of
operations which, in the area of public utilities, can result in the cancellation of
concessions.
02. ELECTRICITY GENERATION
Enersis participates in electricity generation in Argentina through Endesa
Costanera and El Chocón in which it has direct and indirect shareholdings of
41.8% and 39.2% respectively
These companies have a combined total of five plants, totalling 3,652 MW. This
capacity in 2009 represented 14% of the installed capacity on the Argentine SIN.
The electricity generation of the Enersis Group reached 11,955 GWh, 11% of
the total generated in that country, with hydroelectric generation accounting for
32%. Physical energy sales were 12,405 GWh, 12% of the total sold.
Endesa Costanera and El Chocón have holdings of 5.51% and 15.35%
respectively in companies that operate two combined-cycle plants, initiatives
coordinated by the Fund for Necessary Investments that Permit Increasing
Electricity Supplies on the Wholesale Electricity Market (FONINVEMEN).
During 2009, the Manuel Belgrano and José de San Martín thermal plants
operated intensively in open cycle , with both natural gas and gas-oil in
the winter.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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In January 7, 2010 CAMMESA authorized the commercial start-up of the steam
turbine of Central Termoeléctrica Manuel Belgrano, with the combined cycle fully
operating. It is expected that the commercial start-up of the combined cycle of
Central Termoeléctrica José de San Martín will be within a few weeks.
It should be recalled that following their commercial start-up in combined cycle,
the companies, including El Chocón and Endesa Costanera, should begin to
recover their credits from the project’s cash flows, through their production sales
contracts to the MEM, administered by CAMMESA, for ten years.
Other generators connected to the Argentine SIN are AES Alicura, Capex,
Petrobras and Pluspetrol.
ENDESA COSTANERA
Located in the city of Buenos Aires, its installed capacity of 1,138 MW is steam-
gas thermal and uses natural gas or fuel oil. It is the largest facility of its kind in
Argentina. It also operates two combined-cycle plants of 859 MW and 327 MW
each, with a total installed capacity of 2,324 MW.
Net generation in 2009 was 8,172 GWh and total sales 8,284 GWh.
The year 2009 was noted for an improvement in hydrological conditions and
reduced demand on the Sistema Interconectado Nacional (the national grid)
which led to a fall in sales prices. There was also a greater availability of natural
gas which implies that there was reduced consumption of liquid fuels, which
thus reduced generating costs.
On the regulatory side, the MEM continued to be intervened by the authority in
the pricing of the hourly energy sale price and payment for that produced by the
generators. Due to these measures, the Company received only partial payment
of its monthly credits.
In financial terms, the company has had to make great management efforts, like
the refinancing of short-term debts and obtaining new loans to ensure the funds
necessary for the satisfactory operating of the plant.
Regarding investments made for maintaining the plant facilities, these continued
to progress as planned during 2009, the amount invested being 148 million
Argentine pesos, in the framework of the company’s commitment to continue
providing a reliable, timely and safe service.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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EL CHOCÓN
Located in the provinces of Neuquén and Río Negro, it operates one artificial-
reservoir hydroelectric plant of 1,200 MW and another of 128 MW that use the
waters of the Limay and Collón Curá rivers, with a total installed capacity of
1,328 MW.
The hydrology year that started on April 1, 2009 was classified as a “medium
year”. During 2009 rainfall readings compared to monthly historical averages
in the river Limay basin, plus Collón Cura, varied between higher levels in
February, April, May, August, October and November and lower levels during
January, March, June, July, September and December. The maximum levels of
accumulated snow in the high range were around average historical levels.
Under these hydrological conditions, the company increased its net generation
and sales compared to 2008, reaching 3,783 GWh and 4,122 GWh respectively.
During 2009, the company concentrated on diversifying its customer portfolio
through commercialization in alternative markets to the spot, giving priority to
profitable long-term relations with customers of proven strength.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
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03. ELECTRICITY DISTRIBUTION
Enersis participates in electricity distribution in Argentina through its subsidiary
Edesur in which it has a 65.4% direct and indirect shareholding.
The market share of our Argentine subsidiary, in terms of physical sales, is
approximately 19%.
Other distributors in the Argentine electricity system are Empresa Jujeña de
Energía (EJESA), Empresa de Distribución de Energía de Tucumán (EDET),
Empresa Distribuidora de Energía de Santiago del Estero (EDESE), Empresa
Distribuidora y Comercializadora Norte (EDENOR) and Empresa de Distribución
de la Plata (EDELAP).
EDESUR
The principal objective of Edesur is to distribute and commercialize electricity
in the southern part of the city of Buenos Aires, comprising two-thirds of the
Federal Capital region and twelve districts of the province of Buenos Aires. Its
concession area covers 3,309 km2 and lasts for 95 years from August 31, 1992.
This period includes an initial one of 15 years and eight additional ones
of 10 years each. On February 5, 2007, the electricity regulatory authority
(ENRE) resolved to extend the initial period by a further five years as from the
completion of the Integral Tariff (RTI) process.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
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The concession establishes the obligation of Edesur to supply electricity at the
request of the owners or inhabitants of properties within its concession area,
meet certain quality standards referring the electricity supplied, comply with
operational requirements with respect to the maintenance of the distribution
assets and bill customers on the basis of effective metering.
In 2009, Edesur provided an electricity service to 2,305,060 customers, 1.9%
more than the year before. Of the total, 87.1% are residential customers, 11.5%
commercial, 1.0% industrial and 0.4% other users.
Energy sales amounted to 16,026 GWh, representing a decline of 0.8% from
2008. This was distributed 41.2% to the residential sector, 26.3% to the
commercial sector, 8.2% to industry and 24.3% to others.
Energy losses were 10.5% in 2009.
During 2009, the return of government subsidies was permitted to the seasonal
energy price; these had been removed in November 2008 by Resolution 1169/08,
which set an increase in the seasonal price of energy from approximately 49
to 58 Argentine pesos and applied this to the tariff for residential, commercial
and industrial users of large consumption (over 1,000 kWh per two-month
period). During June-July, there was a considerable increase in consumption due
to low temperatures compared to the previous period. This led to an increase
in customers in the large-consumption category of over 1,000 kWh over the
previous period and an increase in fines applicable under the Rational Use of
Electricity Program (PUREE). These factors generated the increases in billings
compared to the previous period, which exceeded 300% in some cases, and
the increases in complaints that led to the “tarifazo”. During August, the
authority decided to suspend the application of the resolution mentioned above,
authorizing the full reintroduction of subsidies during the period June-July and by
70% in the August-September period.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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Brasil
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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21
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39
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BelénManausSao PauloRío de JaneiroGoianaBrasiliaGeneration Cachoeira DouradaTypeInstalled CapacityHydro 665 MW FortalezaTypeInstalled CapacityThermal 322 MWDistributionCoelceEnergy SalesCustomersEnergy Losses 7,860 GWh3.0 million11.6%AmplaEnergy SalesCustomersEnergy Losses 9,394 GWh2.5 million21.2%CIENInstalled Capacity 2,100 MWTransmission
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Brazil
01. STRUCTURE OF THE INDUSTRY
The Brazilian electricity industry is organized in one large interconnected
electricity system called the National Interconnected System (SIN) that covers
most of the regions, plus other smaller and more isolated systems.
Generation, transmission, distribution and supply businesses are separated by
law. Non-regulated customers in Brazil are currently those that (1) require at least
3,000 kW and choose to contract their electricity supply directly with generators
or wholesale suppliers, or (2) require at least 500 kW (and less than 3,000 kW)
and choose to contract their electricity supply directly with generators or traders,
according to the specifications established in Law 9.427/96.
The principal regulatory entity is União Federal, acting through the Ministry
of Mining and Energy (MME) which has exclusive authority over the electricity
sector through its concessionary and regulatory powers.
The sector’s regulatory policies are implemented by the National Electric
Energy Agency (ANEEL), whose principal responsibilities include: supervising
electricity sale, generation, transmission, commercialization and distribution
activity concessions, and approving electricity tariffs; promulgating electricity
sector regulations; implementing and regulating the exploitation of electrical
resources, including the use of hydroelectricity; promoting the tender process
for new concessions; resolving administrative conflicts between electricity sector
participants; and setting of tariffs.
Other regulatory authorities include: the Brazilian Electricity System Operator
(ONS), comprising the generation, transmission and distribution companies
and independent consumers, responsible for the coordination and control of
generation and transmission operations on the Brazilian SIN; the Chamber of
Electricity Trading (CCEE), a company in which the participants are grouped into
four categories: generation, distribution, trading and consumers, and whose
main purpose is to carry out wholesale and trading transactions in electricity on
the Brazilian SIN; and the Brazilian Council of Energy Policies (CNPE), responsible
for developing a national electricity policy.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
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DEREGULATION AND PRIVATIZATION
The Concessions Law (No.8,987) and the Energy Sector Law (No.9,074), both
promulgated in 1995, were designed to inject competition and attract private
capital into the electricity sector. Since then, various federal or state government
assets were privatized.
INDEPENDENT PRODUCERS AND OWN-ENERGY PRODUCERS
The Energy Sector Law also introduced the concept of independent producers
(IPP) to open the electricity sector to private investment. The IPPs are individual
participants or participants acting in consortia, who receive a concession, permit
or authorization from the Brazilian government to produce electricity for sale
for their own account. The Concessions Law also provides that, once awarded a
concession, the IPPs, independent producers, suppliers and consumers will have
access to the distribution and transmission systems of other concession-holders,
provided they are reimbursed for their costs, as determined by ANEEL.
Law 9,648/98 created an energy wholesale market formed by the generators
and distributors. Under this model, the purchase and sale of electricity was
negotiated freely.
By Law 10,433/ 2002, the structure of the energy wholesale market was
changed, to be closely regulated and monitored by ANEEL. As a result, ANEEL is
now responsible for establishing the regulations of the energy wholesale market.
Law 10,848/04 seeks to maintain the concept of public service for the
production and distribution of electricity to customers of each concession area,
restructure the planning system, create transparency in the tendering of public
projects to mitigate systemic risks, maintain the operations of the Brazilian
energy system centralized and coordinated, grant the use and universal access
to electricity services throughout the whole of Brazil, and modify the tendering
process of public-utility concessions.
ELECTRICITY SECTOR STRUCTURE
The model set by the laws seeks to offer the best tariffs for the customer and
to guarantee the expansion of the system, with Empresa de Pesquisa Energética
(EPE), a state entity responsible for the planning of generation and transmission
activities. This model has defined an environment of regulated and non-regulated
contracts.
For non-regulated contracts, the conditions for purchasing energy are negotiable
between suppliers and customers. In regulated contracts, where the distribution
companies operate, the purchase of energy should be carried out according to
the bidding process coordinated by ANEEL.
According to the model, 100% of the energy demand of the distributors should
be met under long-term contracts in anticipation of the expiry of the current
contracts in the regulated environment.
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
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Another change imposed on the electricity sector is the separation of the bidding
process for previously-existing energy and energy from a new project. Plants
in existence prior to 2000 are considered to be previously-existing energy and
those developed after 2000 are considered to be energy from a new project. The
government believes that the previously-existing energy plants are capable of
providing energy at more competitive prices and therefore new project energy
plants should receive priority in energy bidding processes. Under the new regime,
this priority will be shown with more favorable contractual conditions.
DISTRIBUTION
The Concessions Law establishes three types of tariff reviews for end consumers;
these are the annual tariff adjustment, ordinary tariff reviews and extraordinary
tariff reviews.
The fixing of distributors’ prices is intended to maintain the operative margins of
the concession-holder constant, permitting tariff increases due to costs outside
the control of the management and permitting the concession-holder to retain
any increase in efficiency achieved over certain periods of time. The tariffs of end
users are also adjusted according to changes in costs incurred in the purchase of
electricity.
The ordinary tariff review takes into account the whole tariff structure of the
company, including the costs of providing services, the costs of buying energy
and the return for the investor. Under their concession contracts, this process is
carried out every four years for Coelce and every five years for Ampla. The asset
base consists of the market value of replacement depreciated over the useful life
from an accounting viewpoint and the rate of return on the distribution asset
is based on the weighted average cost of capital (WACC) model. The costs of
operation and maintenance reflected in the tariff are calculated based on the
model that considers the particular characteristics of the distributor’s concession
area.
The law guarantees an economic and financial balance for a company in the case
of a substantial change in its operating costs. Should the cost components over
which the management exercises no influence, like energy purchases and taxes,
increase significantly within a period of two annual adjustments, the concession-
holder may submit a formal request to ANEEL for these costs to be charged to
end customers.
RECOGNITION OF THE INVESTMENT FOR REDUCING ELECTRICITY
LOSSES
In response to requests by Ampla, ANEEL determined that the efficiency and
effectiveness of the projects that are intended to combat electricity theft and
reduce electricity losses, will be considered in the tariff reviews after being
audited.
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CONCESSIONS
Companies or consortia that intend to build or operate hydroelectric generation
facilities of over 30 MW, or transmission networks in Brazil, should employ a
bidding process. Concessions granted to a holder give it the right to generate,
transmit or distribute electricity, as the case may be, in a specific zone for a given
period of time.
The period of time is limited to 35 years in the case of new generating
concessions and 30 years in the case of new transmission or distribution
concessions. Existing concessions may be renewed at the discretion of the
Brazilian government, for a period equal to the initial one.
ENVIRONMENTAL REGULATIONS
The Brazilian constitution permits the federal government and state governments
to promulgate laws to protect the environment and issue regulations under
such laws. While the federal government has the power to pass environmental
regulations, the state governments have the power to promulgate stricter
environmental regulations. Most environmental regulations in Brazil are not
therefore issued at the federal level but at the state or local level.
ELECTRICITY SALES
In the regulated environment, the distribution companies buy electricity in
tenders regulated by ANEEL and organized by CCEE. Distributors have to buy
electricity in public tenders.
There are two kinds of regulated tenders in which the distributors buy electricity:
one on which existing contracts can be renewed and the other in which new
contracts are signed. The government also has the right to call special tenders
for renewable energy (biomass, mini hydro, solar and wind). ANEEL and CCEE
arrange tenders annually.
Non-regulated contracts include the sale of electricity between generation
concession-holders, independent producers, self producers, sellers of electricity,
importers of electricity, and special and non-regulated customers. The ACL also
includes existing bilateral contracts between generators and distributors until
their expiry when new contracts should be signed under the conditions of the
new legislation.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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ENERGY TENDERS
The sale of electricity in the regulated environment occurs through new
electricity, existing electricity and adjustments tenders. The contracting system is
multilateral, with generators signing contracts with all the distributors subject to
the tender.
AGREED SPOT PRICE
The agreed price for the differences is used to value the purchase and sale of
electricity on the short-term market. According to the new industry model law,
the CCEE is responsible for setting the electricity price on the spot market.
FINES APPLICABLE TO PARTICIPANTS IN THE ELECTRICITY INDUSTRY
Sellers are responsible for the payments to the buyers should they be incapable
of meeting their supply obligations. The ANEEL sets the fines applicable to
electricity participants on the basis of the nature and materiality of the breach
(including warnings, fines, temporary suspension of the right to take part in
tenders for new concessions, licenses or authorizations, and confiscation). For
each breach, fines can be taxes of up to 2.0% of the revenues from the sale of
electricity and services (net of taxes) for the 12-month period immediately prior
to the notification.
The ANEEL may also impose restrictions on the terms and conditions of the
agreements between related companies and, in extreme circumstances,
terminate such agreements.
INCENTIVES FOR DEVELOPING ALTERNATIVE ENERGY SOURCES
Law 10,438/2002 created certain incentive programs for the use of alternative
sources of electricity generation. Proinfa assures the purchase of electricity
generated by Electrobras for a period of 20 years, and the financial support
of BNDES. Other programs include up to a 50% discount on distribution and
transmission tariffs and a special exception for consumers with electricity
consumption volumes of between 500 kW and 3MW (special consumers) that
decide to migrate to ACL, should such consumers buy electricity from generation
companies that use alternative electricity sources.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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INDUSTRY CHARGES
The Energy Industry Law requires the holders of a concession using hydro
resources to pay a charge of 6.0% to 6.75%, depending on the size of the
generating plant, on the amount of electricity produced.
The charge for the electricity service inspection is an annual one of approximately
0.5% of the annual net income obtained by the company, which varies
according to the type of service and in proportion to the concession, permit or
authorization.
Regarding the subsidy for the fuel cost of thermal plants connected to the
SIN which use Brazilian coal, CDE relies on the CCC (fossil-fuel consumption
account). The CDE is financed by all electricity consumers and was created to
support a) the development of electricity production throughout the country, b)
the production of electricity with alternative sources (wind, mineral coal, gas and
biomass), and c) social objectives, such as the availability of electricity throughout
the country, reduction in the cost of electricity for low-income residents and the
preservation of the coal industry in the south of Brazil.
For existing thermal plants using Brazilian-produced coal, the law requires that
the CDE be used to subsidize up to 100% of the cost of coal. According to the
applicable legislation, plants should make minimum purchases of coal in order
to guarantee a certain level of production of Brazilian coal, in order to obtain the
subsidy. However, self-producing consumers do not pay the CDE charge, which is
a significant advantage for this type of project.
Until December 2003, all electricity-industry participants, whether distributors,
generators or traders, that negotiated contracts with end consumers, contributed
to the CCC, a subsidy to cover the cost of fuel used by thermal plants located in
isolated systems, for a period of 20 years, in order to promote the generation of
electricity on those regions.
CONTRIBUTIONS TO RESEARCH AND DEVELOPMENT
The companies that have concessions, permits or authorizations for the
distribution, generation and transmission of electricity must invest every year at
least 1% of their net sales in research and development in the energy industry.
Mini-hydro, solar, wind and biomass generating plants are exempt from this duty.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
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25
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ENDESA BRASIL
Enersis participates in Brazil through Endesa Brasil. Enersis began to consolidate
Endesa Brasil in October 2005, with a direct and indirect shareholding of 54.3%.
The objective of the reorganization of all the assets in Brazil was to simplify the
organizational structure, thus permitting greater efficiency, transparency in the
flows and stability of local cash flows, and thus reducing financing costs; in
addition, to improve financing by third parties and lastly to strengthen the Enersis
Group’s positioning in considering new investment opportunities.
02. ELECTRICITY GENERATION
Enersis participates in electricity generation through Endesa Brasil and its
subsidiaries Cachoeira Dourada and Endesa Fortaleza, with a direct and indirect
shareholding of 54.1% and 54.3% respectively.
These two companies, one hydroelectric and the other thermal, had a total
installed capacity of 987 MW, almost 1% of the total capacity available at the
Brazilian NIS.
Electricity generation of the Enersis Group in Brazil reached 3.319 MW, which
represents 1% of the generated electricity in the country. Hydro generated
energy represents an 85% of the electricity generation of the Enersis Group in
Brazil. Physical sales reached 6.869 GWh, which represents 2% of the system’s
total sales.
Other generators connected to the Brazilian NIS are CHESF, Furnas, Cemig,
ELectronorte, Cesp, Copel, Eletrobras and Eletropaulo.
CACHOEIRA DOURADA
Located in the state of Goias, 240 km. south of Goiania. It has ten units with
with a total of 665 MW of installed capacity. It is apass-through hydroelectric
plant that uses the waters of the Paranaiba river.
Net generation of Cachoeira in 2009 was 2,820 GWh, while sales were 3,862
GWh, both below the level of the previous year.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
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Our subsidiary Cachoeira Dourada showed a reduced operating income
compared to 2008 due to low sales volumes and reduced sale prices in the
market, the product of a decline in fuel costs and better hydrology.
During 2009, the renovation of the generating unit No.4 was completed and its
environmental license renewed for another 10 years.
Prospects for 2010 include planned investments, mainly in the maintenance and
improvements of generating units Nos. 2 and 4.
CENTRAL FORTALEZA
Located in the district of Caucaia, 50 km. from the state capital of Ceará, this
is a combined-cycle thermal plant of 322 MW that uses natural gas and has
the capacity to generate a third of the electricity needs of Ceará, which has a
population of 8.2 million.
Built on a site of 70 thousand square meters, it forms part of the infrastructure
of the Pecém Industrial and Port Complex in the municipality of Caucaia, and is
a member of the federal government’s Thermal Electricity Priority Program (PPT).
The location is strategic for promoting regional growth and making viable the
installation of other industries. Its principal customers are Compañía Energética
de Ceará - Coelce, distributor throughout the state, and Petrobras.
Generation in 2009 was 499 GWh, far greater than the 71 GWh generated in
2008, while its sales totaled 3,007 GWh, 12% higher than in the previous year.
The reduced results of this plant were due to the reduced energy trading margin,
reflecting the high spot prices at which it had to buy.
This improvement in activity and results is mainly due to higher revenues as
a result of an increase in physical sales of 317 GWh, a higher average sale
price and reduced energy-purchase and fuel costs in the period. The supply of
liquefied natural gas by Petrobras was restored during 2009.
The company’s plans for 2010 are to invest in maintenance and improvements.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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03. ELECTRICITY TRANSMISSION
The Enersis Group also participates in the transmission and trading of electricity
in Brazil through the interconnection line between Argentina and Brazil, CIEN, in
which it has a 54.3% holding.
CIEN
Compañía de Interconexión Energética S.A. (CIEN) is a Brazilian energy-
transmission company. It is formed by two frequency conversion stations, Garabi
I and Garabi II, which convert in the two directions the frequencies of Brazil (60
Hertz) and Argentina (50 Hertz), and transmission lines installed in each country.
On the Argentine side, these lines are managed by two subsidiaries: Compañía
de Transmisión del Mercosur S.A. (CTM) and Transportadora de Energía S.A.
(TESA). Endesa Cien has 99.99% shareholdings in each.
The complete interconnection system consists of two transmission lines with a
total length of 1,000 kilometers and the Garabi conversion station.
Compañía de Transmisión del Mercosur S.A. (CTM) is the owner of the Argentine
side of the transmission line and CEMSA is the trading company which has
signed contracts with generators in Argentina for the export of electricity from
there to Brazil and Uruguay.
In 2009, as in 2008, CIEN acted as exporter/importer of energy from Brazil
to Argentina and exporter for Uruguay. This business generated revenues for
making its lines available (transport).
With respect to the company’s prospects for 2010, it will progress in its search
for re-defining its business to a permanent remuneration system. ANEEL began a
study in early 2009 to re-define the company’s business model.
CIEN will make investment during 2010 in environmental matters and in
maintenance.
It is expected to progress positively during 2010 in terms of obtaining a fixed
remuneration for the company’s service.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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04. ELECTRICITY DISTRIBUTION
Enersis participates in distribution through Endesa Brasil and its subsidiaries
Ampla and Coelce. Enersis directly and indirectly has 70.2% and 35.2%
shareholdings in these companies, respectively.
The market share of our subsidiaries in Brazil, in terms of physical sales, was
approximately 5%.
Other distributors in the Brazilian electricity system are CPFL, Brasiliana de
Energía, AES Elpa, Cemig, Light, Coelba and Copel.
AMPLA
Ampla is an electricity distribution company that covers 70% of the state of Rio
de Janeiro, corresponding to an area of 32,613 sq.km.. The population of the
area is around eight million living in 66 districts, the principal ones being Niteroi,
São Gonçalo, Petrópolis, Campos and Cabo Frio.
It provides an electricity service to 2,521,597 customers, 2% more than the
previous year. Of these, 89.9% are residential, 6.7% commercial, 0.2% industrial
and 3.2% other customers.
During 2009, the company sold 9,394 GWh to its end customers, representing a
3% increase over 2008. Of this, 38.1% was sold to residential customers, 19.4%
to commercial, 11.4% to industrial and 31.1% to other customers.
Ampla’s loss indicator in 2009 was affected by unmanageable external factors
like the prohibition on billing new customers with electronic meters and the
contraction of the industrial market, which caused a 1 percentage point increase
over 2008, closing the year with losses of 21.2%. The company continues
to introduce technological improvements and remote solutions in order to
combat energy theft. Almost 50 thousand new customers were connected to
the electronic billing system in 2009, making 551 thousand customers to date
connected to the Red Ampla (248 thousand with electronic billing). This is in line
with strategy defined by the company to reduce energy losses annually.
Regarding the tariff situation, the second tariff review was approved on March
15, 2009 with the publication of Resolution 782 of March 10, 2009, whose
average impact felt by the customer was +0.82%.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
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COELCE
This is the electricity distribution company of the state of Ceará, in north-east
Brazil, and covers a concession zone of 148,825 km2. The company serves a
population of more than seven million people.
The customers of Coelce number 2,965,469, of which 74.9% are residential,
5.2% commercial, 0.2% industrial and 19.7% other sectors.The number of
customers rose by 4.4%.
Energy sales in 2009 were 7,860 GWh, 3.8% higher than in 2008. Of this total,
33.0% were to residential customers, 19.3% to commercial, 17.3% to industrial
and 30.3% to other customers.
Total energy losses showed a small improvement, reducing from 11.7%
to 11.6%.
Regarding tariffs, the annual tariff adjustment was made in 2009 with an
increase for Coelce of 11.3%, effective from April.
For 2010, it is planned to continue with the Light for Everyone Program between
the federal government, Coelce and the state government, and also continue
with the Ecoelce project, an initiative that offers to exchange waste (which is
then recycled) for discounts on electricity charges.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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39
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Chile
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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AntofagastaTalcaLinaresConcepciónGenerationGeneration TarapacáTypeInstalled CapacityThermal 182 MW AtacamaTypeInstalled CapacityThermal 781 MW Tal - TalTypeInstalled CapacityThermal 245 MW Diego de AlmagroTypeInstalled CapacityThermal 47 MW HuascoTypeInstalled CapacityThermal 80 MW Los MollesTypeInstalled CapacityHydro 18 MW San Isidro and San Isidro 2 TypeInstalled CapacityThermal 778 MW RapelTypeInstalled CapacityHydro 377 MW SauzalTypeInstalled CapacityHydro 77 MW SauzalitoTypeInstalled CapacityHydro 12 MW CipresesTypeInstalled CapacityHydro 106 MW IslaTypeInstalled CapacityHydro 70 MW QuinteroTipo Potencia InstaladaThermal 257 MW QuinteroTypeInstalled CapacityThermal 257 MWParque Canela and Canela IITypeInstalled CapacityEolic 78 MW CurillinqueTypeInstalled CapacityHydro 89 MW Loma AltaTypeInstalled CapacityHydro 40 MW PehuencheTypeInstalled CapacityHydro 570 MW Ojos de AguaTypeInstalled CapacityMini hídrica 9 MW BocaminaTypeInstalled CapacityThermal 128 MW AntucoTypeInstalled CapacityHydro 320 MW AbanicoTypeInstalled CapacityHydro 136 MW El ToroTypeInstalled CapacityHydro 450 MW RalcoTypeInstalled CapacityHydro 690 MW PalmuchoTypeInstalled CapacityHydro 34 MW PangueTypeInstalled CapacityHydro 467 MWDistributionChilectraEnergy SalesCustomersEnergy Losses12,585 GWh1.6 millions6.1%Santiago
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Chile
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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21
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01. INDUSTRY STRUCTURE
The Chilean electricity sector is regulated by the General Electricity Services Law,
contained in Ministry of Mining Decree Law No.1 of 1982, and its regulations,
explicit in Supreme Decree 327 of 1998 whose amendments are restated in DFL
4/20,018 of May 12, 2006.
Three government entities are responsible for the application and compliance
with the law: the National Energy Commission (CNE), which has the authority
to propose the regulated tariffs (node prices) and to prepare indicative plans for
the construction of new generating units; the Superintendency of Electricity and
Fuels (SEC), which regulates and checks compliance with the laws, regulations
and technical standards for electricity generation, transmission and distribution,
liquid fuels and gas; and the Ministry of the Economy which revises and approves
the tariffs proposed by the CNE and regulates the granting of concessions to
electricity generating, transmission and distribution companies, following a
report from the SEC. The law establishes a panel of experts whose main function
is to resolve disputes between electricity companies.
According to the Chilean electricity law, generating companies on an electricity
grid have to coordinate their operations through the Economic Load Dispatch
Center (CDEC) in order to operate the electricity grid at minimum cost while
preserving service security. The CDEC therefore plans and carries out the grid’s
operation, including the calculation of the hourly marginal cost, the price of
energy transfers between generators.
The generating decisions of each company are therefore subject to CDEC’s
operating plan. Each company in turn may freely decide whether to sell its
energy to regulated or non-regulated customers. Any surplus or deficit between
customer sales and production is sold to or bought from other generators at
marginal cost.
A generating company may have the following kinds of customers:
Regulated customers: residential, commercial, small and medium industrial
customers, with a connected capacity of no more than 2,000 KW, and which are
located in the concession area of a distributor company.
These consumers are charged at the transfer price between generator and
distributor companies, corresponding to the result of tenders that these carry
out in accordance with current regulations. With effect from 2010, the prices
resulting from the tender processes carried out during the period 2006-2009 will
be applied, despite the fact that for 2009 the node price continued to be applied
as the maximum amount that generators could charge distributors and which
are calculated every six months (April and October), based on a report prepared
by the CNE on the basis of projections of the marginal costs of the electricity grid
expected for the following 48 months, in the case of the SIC, and 24 months in
that of the SING.
Non-regulated customers: that part of demand with a connected capacity of
more than 2,000 kW, mainly industrial and mining companies.
These consumers can negotiate freely their electricity supply prices with
generators and/or distributors. Customers of between 500 kW and 2,000 kW
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capacity have the option to contract energy at prices that can be agreed with
their suppliers, or continue to be submitted to regulated prices.
The spot market involves energy and capacity transactions between generating
companies, resulting from the coordination made by the CDEC to achieve the
economic operation of the grid, and the surpluses (deficits) of their production
with respect to their commercial commitments, are transferred by sales to
(purchases from) other generator members of the CDEC. In the case of energy,
transfers are valued at marginal cost; for capacity, the corresponding node price,
as set semi-annually by the authority.
In Chile, the capacity to be remunerated for each generator depends on a
calculation made centrally by the CDEC on an annual basis, from which the firm
capacity of each plant is obtained, a value that is independent from its dispatch.
As from 2010, with the promulgation of Law 20,018, distributor companies
should constantly have the supply to cover their demand, for which they should
carry out long-term public tenders. During the period 2006-2009, various
distributor companies carried out tenders and closed supply contracts for a total
of approximately 25,000 GWh/year, contracts that have a minimum term of
ten years and which cover around 86% of expected regulated demand for the
year 2011.
The principal regulatory projects considered in 2009 were:
a) On April 3, 2009, Law 20,339 was published in the Official Gazette. This
incorporates liquefied natural gas (LNG) fuel in the Oil Derivative Fuels Price
Stabilization Fund (FEPCO), in order to balance the relative prices of LNG,
LPG and diesel oil. A tax or credit is established for LNG, whose amount
per cubic meter will be equal to the tax/credit for the same period that is
applied to the cheapest fuel in energy units, between LPG and diesel oil. The
corresponding regulation is awaiting publication.
b) On June 19, 2009, the President of the Republic decreed the creation of the
Inter-Ministerial Committee on Hydric Policy. The purpose of this committee
is to prepare a proposal containing the outlines of a national policy on
long-term hydric resources, that promotes the efficient and sustainable use
of these, and the preservation of the environment. It should also consider
outlines for adapting the legal framework to the present national and
international hydrological situation.
c) The government stated in September 2009 that it will submit a bill so that
companies that connect new generation units to the grid with a capacity
of over 200 MW (whether the SIC or the SING) pay a specific tax to the
municipality of 270 UTM/MW, to be paid in 10 annual installments and
which may be deducted from taxes.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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d) On October 16, 2009, the Official Gazette published the New Safety and
Quality of Service Technical Standard which came into effect on December
16, 2009. This standard raises the requirements of the data control and
acquisition system and sets standards of unavailability or generating units.
e) On November 25, 2009, the President of the Republic promulgated Law
20,402 which created the Ministry of Energy. This new ministry will group
together the National Energy Commission (CNE), the Superintendency of
Electricity and Fuels (SEC) and the Chilean Nuclear Energy Commission.
The President was also authorized to create the Chilean Energy Efficiency
Agency.
f) On November 11, 2009, the Official Gazette published Ministry of Finance
Decree 1.197 which adapts the customs regulations and authorizes the
export of LNG to other countries in the region. The decree establishes that
residential gas has the same treatment as other merchandise in transit,
which means that exports to third countries are duty free.
g) On December 1, 2009, the Official Gazette published Resolution 1278/09
which sets the rules for the proper implementation of Law 20,257, referring
to the generation of electricity from non-conventional renewable energy
(NCRE) sources.
From a physical point of view, the Chilean electricity sector is divided into four
grids: SING (the northern grid), SIC (the central grid) and two minor isolated
grids, Aysén and Magallanes.
The SING covers 700 km. in the north of the country, from Arica to Coloso. This
system, with an installed capacity of 3,688 MW as of December 2009, is 99.7%
thermal. The gross maximum demand on the SING in 2009 was 1,900 GWh and
energy sales were 13,656 GWh, representing a 3.3% increase over 2008.
The SIC, the principal electricity grid, is 2,400 km long, from Taltal in the north
to Quellón, on the island of Chiloé, in the south. It has an installed capacity of
11,408 MW as of December 2009, of which 45.9% is hydroelectric, 53.4%
thermal and 0.7% wind. Gross maximum demand on the SIC in 2009 was 6,145
GWh and sales were 39,401 GWh, representing a decline of 0.5% from 2008.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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SALES TO OTHER GENERATORS
Each CDEC determines annually the firm capacity for each generating plant. The
generator may sell capacity up to the amount of its firm capacity. Firm capacity
is the maximum capacity that a generator can provide to the grid at certain peak
hours, taking into account statistical data on the time that the plant is out of
service due, for example, to maintenance.
A generator may need to buy or sell energy or capacity on the spot market at
any time, depending on its contractual obligations with respect to the volume of
electricity it will have to dispatch, and its firm capacity.
TRANSMISSION
As transmission assets are constructed under concessions conceded by the
state, the Electricity Law states that a transmission company should operate by
permitting open access for users, which should contribute to its operating and
maintenance costs and, when necessary, the costs of expanding the system.
Transmission companies recover their investment in transmission assets through
tolls or charges which are collected from generating and distribution companies
in a proportion of 80% generators and 20% distributors. Transmission company
tolls are set every four years by Ministry of Economy decree.
TARIFF FOR DISTRIBUTION TO END CUSTOMERS
The tariff charged by distributor companies to their end customers is determined
on the basis of the sum of the cost of electricity incurred by the distributor, a
transmission charge and the value added of the distribution network (VAD),
which enables distributors to recover their operative costs. The tariff for
generating capacity and distribution sold to customers includes a factor reflecting
the simultaneous contribution of each customer to the capacity demanded at
peak hours of the grid as a whole. The transmission charge reflects the cost of
transmitting and transforming electricity.
VAD TARIFF
The VAD is based on a company model, and includes the distribution
administration and selling expenses, the costs of maintenance and exploitation of
distribution assets, the cost of energy and energy losses, and an expected return
on the investment, before taxes, of 10% annually in real terms on the basis of
the replacement cost of the assets used in distribution.
The CNE selects a company for this purpose to which it applies efficiency
guidelines that result in a costs structure for the model company for each
Typical Distribution Area. The tariff is not based on the actual costs incurred
by any distributor but on the investment, operation, maintenance and general
administrative standards and general efficiency of operations for the model
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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company used as a benchmark. The VAD is fixed every four years. The return on
the investment of a particular distributor depends on its relative performance to
the standards chosen by the CNE for the model company.
CONCESSIONS
The law permits generation without a concession, but generating companies
may request one to facilitate access to third-party properties. Property owners
have the right to receive a compensation that may be agreed between the
parties or, if there is none, through an administrative process that can be
appealed against in the Chilean courts.
FINES AND COMPENSATIONS
If a rationing decree is promulgated in response to prolonged periods of shortage
of electricity, heavy fines may be imposed on generating companies which
breach the decree. A prolonged drought is not considered to be force majeure.
If generators cannot meet their contractual obligations for supplying electricity
during the period of a rationing decree and the grid has no available energy for
making purchases, the generators should compensate the cost of the fault to the
customer, as defined by the authorities in each tariff setting. The cost of the fault
corresponds to the average cost incurred by end users in obtaining 1 kWh by
their own means.
Distributors can be asked to compensate end customers if there were energy cuts
that exceed authorized standards. The value of these compensation payments
shall be equal to double the energy not supplied to the cost of the fault.
02. ELECTRICITY GENERATION
Enersis participates in electricity generation through Endesa Chile and its
subsidiaries, the largest electricity company in the country in terms of installed
capacity, in which it has a direct 60% shareholding.
Endesa Chile and its subsidiaries possess and operate a total of twenty-nine
generating plants, sixteen of them hydroelectric, eleven thermal and two wind
farms, with a total installed capacity of 5,650 MW, representing 37% of Chile’s
total capacity.
Electricity generation by the Enersis Group was 22,239 GWh in 2009, 67% being
hydroelectric. This represented 39% of the total produced. Physical energy sales
amounted to 22,327 GWh, 42% of the total sold.
Other generators connected to the electricity grid are AES Gener, Colbún,
Electroandina, Edelnor and Norgener.
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ENDESA CHILE
Endesa Chile supplies electricity to the principal distributors, large non-regulated
industrial companies (mainly in the mining, woodpulp and steel-making sectors)
and on the spot market.
The most important supply contracts of Endesa Chile with regulated customers
refer to its contracts with Chilectra and CGE, the two largest distributors in Chile.
In the long-term supply tender processes held in January and July 2009,
Endesa Chile signed supply contracts with the distributors Chilquinta and CGE
Distribución for a total of 3,060 GWh/year, divided into blocks of 660 GWh/year,
2.000 GWh/year and 400 GWh/year. The terms of these blocks extend to 12 and
15 years, from 2010.
Endesa Chile has continued with its policy of proximity and improvement in
commercial relations with its customers, organizing a series of activities to
strengthen these. Within the framework of the Customer Integral Service Plan,
the Canela wind farm was visited in 2009. The same month, three seminars
were given with customers in the regions of Concepción, Copiapó and La
Serena. In September, the “5th Seminar with Customers of Endesa Chile and
subsidiaries” was organized, designed to provide a general vision of the impact
of implementing projects related to energy efficiency in the production processes
of our users.
The annual program of visits to their commercial offices or production facilities
was also followed.
PEHUENCHE
Operates in Chile’s 7th Region and possesses 3 reservoir hydroelectric plants with
a total installed capacity of 699 MW. Curillinque is fed indirectly from the Maule
and La Invernada lakes; Loma Alta also uses the waters of the Colorado river,
and Pehuenche is fed by the above sources plus the Melado reservoir and some
minor contributories.
Enersis holds, directly and indirectly, 56% of the share capital of the company.
Net generation was 3,613 GWh, while sales were 3,596 GWh.
PANGUE
Located in Chile’s 8th Region, 100 km to the east of Los Angeles, its installed
capacity of 467 MW is hydroelectric, with an reservoir that is fed by the waters
of the Bío-Bío river. Enersis has a 57% shareholding. The net generation of
Pangue was 2,113 GWh and sales were 2,187 GWh.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
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73
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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21
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SAN ISIDRO AND SAN ISIDRO 2
Both located in Chile’s 5th Region, 8 km from Quillota. It is a combined-cycle
plant with dual technology which enables it to use natural gas and fuel oil for
generation. Their installed capacity of 778 MW (San Isidro I of 379 MW and San
Isidro II of 399 MW).
Enersis has a 60% shareholding.
Both the net generation and sales of San Isidro were 1,616 GWh during 2009.
CELTA
Its two plants are located in Chile’s 1st Region, 65 km south from Iquique.
Its installed capacity of 182 MW is steam-gas thermal, using coal and oil for
generation.
Enersis has a 60% shareholding.
The net generation of Celta was 981 GWh and sales were 1,074 GWh.
CANELA AND CANELA II
Located in the 4th Region, 80 km to the north of the town of Los Vilos. It has an
installed capacity of 78 MW and was the first wind farm on the SIC. Enersis has a
45% shareholding.
It is estimated that the operation of the Canela wind farm substitutes annually
the emission of approximately 110.9 thousand tons of CO2 annually.
PROJECTS CARRIED OUT
QUINTERO THERMAL PLANT
This project contemplated the construction and commercial start-up of a thermal
plant in open cycle of 257 MW capacity, in the town of Quintero, in the 5th
Region of Valparaiso.
The first unit of 129 MW of gross capacity was declared in commercial operation
on July 23, 2009 and the second unit, of 128 MW gross capacity, on September
4, 2009. The plant operates in open cycle with diesel oil and, from December,
also with liquefied natural gas.
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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CANELA II wIND FARM
This project contemplated the construction and commercial start-up of a thermal
plant in open cycle of 257 MW capacity, in the town of Quintero, in the 5th
Region of Valparaiso.
The first unit of 129 MW of gross capacity was declared in commercial operation
on July 23, 2009 and the second unit, of 128 MW gross capacity, on September
4, 2009. The plant operates in open cycle with diesel oil and, from December,
also with liquefied natural gas.
PROJECTS UNDER CONSTRUCTION
BOCAMINA PLANT EXPANSION
This project consists of the construction of coal-fired thermal plant of 370 MW
alongside the present Bocamina plant in the town of Coronel, 8th Region of
Biobío, using pulverized bituminous coal as fuel.
Start-up is expected for the end of 2010.
PROJECTS UNDER STUDY
LOS CÓNDORES HyDROELECTRIC PLANT
This project makes use of the 765-meter drop in altitude between the Laguna
del Maule and the confluence of the Maule river and Las Luces ravine. The
hydroelectric plant will have an installed capacity of 150 MW through a
pressured tunneled supply line approximately 12 km in length.
Opportunities were detected for improving the project during the tender process
begun in 2008. On-site complementary studies were therefore carried out in
2009 and a feasibility study started for the development of the supply tunnel
using TBM methodology (tunneling machine).
NELTUME HyDROELECTRIC PLANT
The project contemplates the construction of a pass-through hydroelectric plant
of 490 MW, to take advantage of the 402-meter altitude difference between
the lakes Pirehueico and Neltume, with intake on the river Fuy. Located in 14th
Region of Los Ríos, it would be connected to the SIC through a link between the
Neltume plant, Pullinque substation and the SIC.
The environmental impact assessment (EIA) was completed during 2009,
following which the feasibility study begun in previous years was adapted.
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PUNTA ALCALDE THERMAL PLANT
The Punta Alcalde project foresees the construction of thermal plant of two
steam-coal units, with a total installed capacity of 740 MW, located in the Third
Region, in the town of Huasco, on a site acquired for this purpose.
This plant would be connected to the Maitencillo trunk substation by a 220 kV
transmission system. The project was submitted to the environmental impact
system in 2009 and the basic engineering studies were progressed.
CHOSHUENCO HyDROELECTRIC PLANT
The Choshuenco project consists of a pass-through hydroelectric plant of
128 MW, with combined adduction (channel and tunnel), which would use
the Llanquihue river waters between Panguipulli and Neltume lakes, being in
hydraulic series with hydroelectric Neltume, and also using the transmission link
provided for the latter.
In 2009, he left the feasibility study and environmental Choshuenco the initial
study Neltume-Choshuenco complex, so as to prioritize Neltume project.
PIRUQUINA HyDROELECTRIC PLANT
The project consists of a pass-through hydroelectric plant of 7.6 MW in the
Chiloe big island. It will be build on the river Carihueico, and will use a flow of
32 m3/s.
In February 2009, the Environmental Impact Study was presented to the Regional
Environmental Commission (COREMA) of the Los Lagos Region, which was
approved in November. During the year 2009 began the development of the
bases for the bidding process.
ASSOCIATE COMPANY PROJECTS
GNL QUINTERO
As part of its strategy to ensure reliable and varied energy sources, Endesa Chile
is participating in the government-inspired initiative that seeks to increase the
diversification of the energy matrix through this Liquefied Natural Gas project
(LNG).
The re-gasification terminal in Quintero is owned and operated by GNL Quintero
S.A., in which Endesa Chile has a 20% shareholding together with Enap,
Metrogas and British Gas, the latter being the fuel supplier.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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In a first stage, the terminal contemplated the installation of an unloading pier,
a small LNG storage tank of 10,000 m3 capacity and a re-gasification system,
works that were completed in early July 2009. It is expected that by August
2010, the two LNG storage tanks will be operating, each with a capacity of
160,000 m3. This will then enable the terminal’s definitive commercial operation
and its maximum guaranteed capacity will increase to 9.6 MMm3/day (currently
4.8 MMm3/day), of which 3.2 MMm3/day will be available to Endesa Chile for
electricity generation, in accordance with the LNG supply volumes contracted.
HIDROAySÉN
HidroAysén, a company in which Endesa Chile has 51% of the capital and
Colbún S.A. the remaining 49%, consists of a building and operation project of
five hydroelectric plants in the Baker and Pascua, in the Region of Aysén in the
extreme south of Chile, to reach a total of 2,750 MW which would be connected
to the Central Interconnected System (SIC).
During the first half of 2009, the management of HidroAysén was focused on
the preparation of its Addendum No.1, with responses to the 2,698 comments
issued by the competent public services for the assessment of the environmental
impact study (EIA), through its Consolidated Report of Request of Rectifications
and/or Clarifications, ICSARA.
Once the work of preparation of the responses to the comments received in
ICSARA No.1 was completed, and due to contingencies that occurred in the
Region of Aysén, HidroAysén believed it wise to request an extension of the term
for the presentation of its Addendum No.1 until October 20, 2009.
On December 29, 2009, the Aysén regional environmental authority (CONAMA)
extended the term of 120 days for the environmental evaluation of the EIA
of the Aysén hydroelectric project for another 60 days. On January 18, 2010,
HidroAysén received ICSARA No.2, with a total of 1,114 comments by the public
services with environmental competence in that region. On January 22, 2010,
HidroAysén proceeded to request Conama to suspend the term until June 30,
2010 to respond to ICSARA No.2.
03. ELECTRICITY DISTRIBUTION
Enersis participates in electricity distribution in Chile through its subsidiary
Chilectra in which it directly holds 99.1% of the share capital.
According to Chile’s tariff regulations covering the activities of electricity
distributors, the service area of Chilectra is defined as one of high density and
includes all the residential, commercial, industrial, state customers and those
that pay tolls. The Santiago Metropolitan Region is the most densely-populated
area in Chile and has the largest concentration of industries, industrial parks and
commercial installations.
Oher distributors in the Chilean electricity system are Empresa Eléctrica de Arica,
Chilquinta Energía, CGE Distribución, Sociedad Austral de Electricidad, Empresa
Eléctrica de la Frontera and Luz Andes Limitada.
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CHILECTRA
Chilectra is the largest electricity distribution company in Chile in terms of
energy sales. It covers 33 districts of the Metropolitan Region and its concession
zone covers an area of 2,000 km2, including those of its subsidiaries, Empresa
Eléctrica Colina Ltda. and Luz Andes Ltda.
It provided an electricity service to 1,579,069 customers, 2.9% more than the
year before. Of the total, 89.9% corresponds to residential customers, 7.7%
commercial, 0.7% industrial and 1.7% other customers.
During 2009, the company sold 12,585 GWh to its end customers, representing
a 0.4% increase over 2008, a low figure when compared with the historic
average growth (around 3%), which is explained by reduced economic activity.
Chilectra bought 11,797 GWh of energy during 2009 from various generators
which included Endesa Chile, AES Gener, Colbún and others.
Chilectra recorded energy losses of 6.1%, one of the lowest in Latin America.
On January 9, 2009, Decree 320 of the Ministry of the Economy was published
in the Official Gazette, setting the sub-transmission tariffs which came into effect
on January 14, 2009 and which will remain in force until 2010. The effects for
Chilectra are estimated to be a fall in revenues before taxes of 52,000 million
pesos annually if market conditions remain constant.
On December 4, 2009, Decree 197 was published in the Official Gazette,
setting prices for services not consisting of energy supplies, bur associated with
electricity distribution. Chilectra reported that the impact of this new decree is
estimated to be 3,000 million Chilean pesos of reduced revenue before taxes
from 2010 onward.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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Colombia
Generation
Barranquilla
Medellín
Bogotá
Cali
Neiva
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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La TintaTypeInstalled CapacityHydro 20 MW ParaísoTypeInstalled CapacityHydro 277 MW LimonarTypeInstalled CapacityHydro 18 MW TequendamaTypeInstalled CapacityHydro 20 MW La JuncaTypeInstalled CapacityHydro 20 MW CharquitoTypeInstalled CapacityHydro 20 MW La GuacaTypeInstalled CapacityHydro 325 MW CartagenaTypeInstalled CapacityThermal 208 MW El GuavioTypeInstalled CapacityHydro 1,213 MW TermozipaTypeInstalled CapacityThermal 236 MW BetaniaTypeInstalled CapacityHydro 541 MWDistributionCodensaEnergy SalesCustomersEnergy Losses11,837 GWh2.4 million8.2%
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Colombia
01. INDUSTRY STRUCTURE
The legal bodies governing the electricity sector are set out in Laws 142 and
143 of 1994, the Colombian Electricity Law. Law 142 sets the legal framework
for the provision of the residential public utilities, including electricity, while
Law 143 (the Electricity Law) sets out the framework for the generation,
commercialization, transmission and distribution of electricity.
The generation sector is organized on a competitive basis in which companies
sell their production on the energy exchange at spot prices or through
freely-negotiated contracts with other exchange participants and with non-
regulated customers, which are those with power demand of over 100 kW or
whose average monthly consumption is above 55 MWh. In December 2009,
Consultation Resolution CREG 179-2009 was issued which would gradually
reduce the limits for contracting energy on the competitive market: to 65 kW or
35 MWh from January 1, 2011, to 37 kW or 20 MWh from January 1, 2012, and
to 19 kW or 10 MWh from January 1, 2013. This resolution is for consultation
over a period of two months.
Purchases and sales of electricity may be carried out between generators,
distributors, traders and non-regulated customers. However, the CREG has been
working since 2004 on a proposal to modify contracting procedures, to become
an electronic contracting system called Regulated Organized Market (MOR).
In 2008 and 2009, the CREG published various consultation documents and
resolutions related to the matter. The definitive regulatory agenda of the CREG
for 2010 plans the definitive resolution for the first half of 2010.
Generators have received a charge for reliability since December 1, 2006, where
the amount remunerated for the capacity of each plant depends on an individual
optimization model related to the real available capacity of each plant. The
price was initially defined by the authority at US$13.05 per MWh, with annual
indexation until November 2012. From December 2012, assignments of energy
and prices will be defined through tenders. The first tender was made in May
2008 to determine the Firm Energy Obligations for the period from December
2012 to November 2013. The closing price was US$ 13.998 per MWh and the
assignment period will be 20 years from December 1, 2012. No firm energy
tenders were arranged during 2009.
The National Dispatch Center (CND) receives daily offers of availability and price
from the generators participating on the exchange. Based on these offers, the
CND determines the real dispatch, incorporating the non-qualifying generation
required for security reasons and/or limitations on the transmission networks.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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The over-costs of non-qualifying generation are paid by consumers at a price
that is independent from the offers made by the plants involved. On the other
hand, the Commercial Exchange System Administrator (ASIC) evaluates an ideal
economic dispatch of the units and determines the exchange price, which is
equal to the price offered by the most expensive unit required to supply demand
at every hour. Between February and December 2009, information on the offers
declared by the participants, the generation dispatches of all the generating
plants and the nominations of natural gas were defined confidentially for a
period of three months, by Resolutions CREG 006-2009 and CREG 015-2009.
In October 2009, the restriction was raised on dispatch information (Resolution
CREG 127-09) and on gas nominations, and in December 2009, the restriction
on information on offers was raised.
The commercialization business established by the regulations permits
participants that buy energy on the exchange to re-sell it to end users. Prices
with non-regulated customers are agreed freely between the parties.
Commercialization with regulated customers is subject to maximum charge rules
as established by the CREG for each seller. The unit cost for providing the service
to the regulated end user is calculated by taking into account the charges for
high-tension transmission, distribution, commercialization and generation.
The Energy Exchange facilitates the sale of surplus energy that is not committed
under any contract. The hourly spot price on the Energy Exchange for all the
dispatching units is established based on the offer price of the dispatching
unit with the highest price for that period. Every day, the CND receives price
offers from all the generating companies participating on the Energy Exchange.
These offers indicate the daily prices and the capacity available per tour for
the following day. On the basis of this information, the CND, in line with the
principle known as “optimum dispatch” (which assumes an infinite transmission
capacity throughout the grid), classifies the generating companies according to
their offer price, beginning with the lowest offer, and establishes the order, by
hour, in which each generator will dispatch the following day to meet expected
demand. The ranking system by price seeks that national demand, plus the
energy exported to other countries, be satisfied by the generating companies
with the lowest available cost in the country. The CND also makes planned
dispatches which take into account network restrictions and all the other
conditions necessary for meeting expected demand for energy the following day,
reliably and efficient in terms of cost.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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21
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If a generator delivers less energy than that assigned by the optimum dispatch,
it is charged the average between market price and its offer prices. Generators
that deliver in excess receive a credit for the difference. The net value of these
restrictions is assigned proportionately to all the sellers on the Colombian grid,
according to their energy demands. Some generators have begun legal actions,
arguing that the recognized prices do not cover the costs associated with these
restrictions.
TRANSMISSION
The transmission companies that operate voltage networks of least 220 kV make
up the National Transmission System (STN). These are obliged to grant access
to third parties to the transmission system under equal conditions and they are
authorized to charge a tariff for the transmission services. The transmission tariff
includes a connection charge that assures the cost of operating the installations
and a charge for use that applies only to traders.
CREG guarantees a fixed annual profit to transmission companies. The profit is
determined by the new cost of replacement of the networks and equipment and
the resultant value of the tender processes for new projects for the expansion
of the STN. This value is assigned between the STN traders in proportion to their
demand for energy.
DISTRIBUTION
Distribution is defined as the operation of local networks of less than 220
kV. Any user can have access to the distribution networks provided the user
pays the connection charge. The CREG establishes distribution prices that
should enable distribution companies to recover their costs, including those of
operations, maintenance and capital operating efficiently. The CREG fixes the
distribution charges for each company on the basis of replacement cost of the
existing distribution assets, the cost of capital, and the costs of operating and
maintenance that vary depending on the voltage.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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21
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TRADING
The retail distribution market is divided into regulated and non-regulated
customers. Customers in the non-regulated market can freely contract electricity
supplies from a generator or distributor acting as traders, or from a trader as
such. The non-regulated market consists of customers with a peak demand of
more than 0.1 MW or a minimum monthly consumption of 55 MWh, which
currently represents approximately 32% of the market.
Trading is the re-sale to end users of electricity bought in the wholesale market.
It may be carried out by generators, distributors or independent agents who
meet certain requirements. The parties freely agree transaction prices with non-
regulated users.
Trading with regulated users is subject to a “regulated regime” in which each
trader sets the tariffs, using a combination of the general cost formulas given by
the CREG and individual trading costs approved by the CREG for each trader. As
the CREG approves the limits on costs, the trader in the regulated market may
set lower tariffs for economic reasons.
In May 2009, the creation of an energy derivatives market in Colombia was
announced, which is being promoted by the Colombian Stock Exchange and XM
Compañía de Expertos en Mercados S.A. E.S.P.
This initiative is called Derivex S.A. and is currently being constituted. Agents,
generators and traders may participate in this market, plus investors who are
not necessarily linked to the electricity sector. It is expected that transactions will
begin during 2010.
In 2009, hydrological contributions to the grid were lower than historic averages
due to the presence of the El Niño phenomenon, which has contrary effects to
those in Chile and Peru. This led the Ministry of Mines and Energy and the CREG
to issue various resolutions that partially and/or temporarily modify the operation
of the electricity dispatch, in order to prevent a possible deficit between
December 2009 and May 2010.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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In October 2009, various resolutions of the Ministry of Energy (MME 18 1654,
18 1686 and 18 1739) decreed a programmed rationing of gas, obliging the
dispatch of Caribbean thermal plants and coal-fired plants inland, penalizing
declarations of availability not dispatched and subjecting exports of electricity to
the availability of generating resources.
Resolution CREG No.137 has applied since November 2009, which temporarily
modifies the functioning of the Energy Wholesale Market while the programmed
rationing of gas continues.
The interconnection with Ecuador has been operating since 2003, permitting
spot transactions between the two countries through the Jamondino and
Panamericana links. In November 2007, the export capacity was increased with
the entry of the Betania-Altamira 230 kV, Betania-Jamondino 230 kV, Altamira-
Mocoa 230 kV and Jamondino-Pomasqui III and IV 230kV circuits, and in
November 2008, the reinforcement of the Colombia–Ecuador interconnection
started commercial operations with the Jamondino–Pomasqui 230 kV 3 and
4 circuits. During 2009, energy exchanges with Ecuador were 1,077 GWh of
energy exported and 21 GWh of energy imported. In November and December,
Resolutions CREG 160, 149 and 148 were issued,
adopting new standards applicable to Short-Term International Electricity
Connections (TIE) between Colombia and Ecuador, in accordance with the
Transitory Regime adopted by Decision CAN 720. This regulation replaces for
two years that of the Andean Community Commission, which has covered the
interconnection with Ecuador from its start-up in 2003.
Installed capacity in Colombia as of December 2009 was 13,544 MW, of which
66.5% was hydroelectric and the rest thermal and co-generation. Peak demand
in 2009 was 9,290 MW and total energy demand on the SIN reached 54,679
GWh, 1.5% higher than the previous year.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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21
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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02. ELECTRICITY GENERATION
Enersis participates in electricity generation in Colombia through Endesa Chile
and its subsidiary Emgesa, in which it has an indirect shareholding of 16.1%.
This company has an installed capacity that represented in 2009 21% of the
country’s total generating capacity.
The electricity generation of the Enersis Group in Colombia was 23% of the
total generated in that market. Its physical energy sales represented 21% of the
total sold.
Other generators connected to the Colombian electricity grid are Empresa
Pública de Medellín, Isagen, Corelca, EPSA and Chivor.
EMGESA
On September 1, 2007 the Colombian companies Emgesa S.A. E.S.P. and Central
Hidroeléctrica de Betania S.A. E.S.P. were merged by the latter’s absorption by
the former, which then changed its name to Emgesa S.A. E.S.P.
It is the largest electricity generating company in Colombia, located close to the
city of Bogotá. It has eleven plants with a total capacity of 2,895 MW, among
which is included the 1,213 MW El Guavio plant, the largest hydroelectric plant
in Colombia. Of the eleven plants, nine are hydroelectric and two thermal.
Net generation was 12,674 GWh, 1.8% less than the previous year, and total
sales were 16,806 GWh, an increase of 2.7% over last year.
The year 2009 was characterized by large revenues, the result of higher spot
sales prices caused by the reduced hydrology associated with the El Niño
phenomenon in the last months, a situation that is expected to continue during
the first quarter of 2010.
PROJECTS UNDER STUDY
CENTRAL HIDROELÉCTRICA EL QUIMBO
Among its investment projects is the El Quimbo hydroelectric plant, at a reservoir
to be located in the department of Huila, on the river Magdalena, upstream from
the Betania plant, 40 km. from the city of Neiva. Its installed capacity will be 400
MW and it will operate with two generating units.
Cabe mencionar que este proyecto se adjudicó una OEF de 1.750 GWh/año por
20 años a partir de diciembre de 2014, a un precio inicial de 13,045 US$/MWh.
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03. ELECTRICITY DISTRIBUTION
Enersis participates in electricity distribution through its subsidiary Codensa, in
which it directly and indirectly holds 21.7% of the share capital.
Codensa’s market share, in terms of physical sales, was approximately 24%.
Other distributors participating in the Colombian electricity system are EEPP
Medellín, Electrificadora de la Costa Atlántica and Electrificadora del Caribe.
CODENSA
Distributes and sells electricity in Bogotá and in 96 districts of the departments of
Cundinamarca, Boyacá and Tolima, comprising an area of 14,087 km2.
Since 2001, Codensa has only provided services to regulated customers. It
provides electricity services to 2,360,544 customers, 3.3% more than in 2008.
Of the total, 88.4% are residential, 9.8% commercial, 1.7% industrial and 0.2%
other customers.
During 2009, energy sales were 11,837 GWh to its end customers, representing
an increase of 0.1% over 2008. These were distributed 36.1% to residential,
16.1% commercial, 6.3% industrial and 41.4% to other sectors.
Energy losses rose from 8.1% in 2008 to 8.2%. Loss management has been
focused on the incorporation of new technologies and techniques for identifying
losses and also on the strengthening of a customer/company relationship based
on technical knowledge and the transparency of our actions.
As part of the tariff-revision process carried out every five years, CREG
Resolution 093 of August 2008 published the rate of return that applies to the
remuneration for the electricity distribution business, which was fixed as 13.0%
for sub-transmission assets and 13.9% for medium and low tension assets.
In October 2009, the CREG issued its Resolution 100 setting the distribution
charges of Codensa for the period 2009-2013. This resolution defined a
reduction in the distribution value added (VAD) of 4.2%.
Lastly, in the framework of the sale process of state distribution companies, EEB
(Empresa Eléctrica de Bogotá) and Codensa, formed a public vehicle called DECA
(Distribuidora de Energía de Cundinamarca), with EEB holding 51% of the capital
and Codensa the remaining 49%. The government awarded DECA an 82%
shareholding in Electrificadora de Cundinamarca.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
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Peru
Generation
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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Trujillo
Lima
Cuzco
Arequipa
Chiclayo MoyopampaTypeInstalled CapacityHydro 65 MW CallahuancaTypeInstalled CapacityHydro 80 MW HuincoTypeInstalled CapacityHydro 247 MW MatucanaTypeInstalled CapacityHydro 129 MW HuampaniTypeInstalled CapacityHydro 30 MW Santa RosaTypeInstalled CapacityThermal 430 MW VentanillaTypeInstalled CapacityThermal 493 MW YanangoTypeInstalled CapacityHydro 43 MW ChimayTypeInstalled CapacityHydro 151 MWDistributionEdelnorEnergy SalesCustomersEnergy Losses5,716 GWh1.1 million8.1%
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01. INDUSTRY STRUCTURE
The principal Peruvian electricity industry regulations are: the Electricity
Concessions Law (Decree Law 25,844) and its regulations; the Law for Ensuring
the Efficient Development of Electricity Generation (Law 28,832); the Technical
Regulations on the Quality of Electricity Supplies (Supreme Decree 020-97EM);
the Regulations for the Import and Export of Electricity (Supreme Decree 049-
2005); the Antitrust Law for the Electricity Sector (Law 26,876); Law 26,734
which created the regime for supervising Investments in Energy, plus the
Complementary Law 27,699 of the Energy and Mining Investment Supervisor
Organism (OSINERGMIN), the Peruvian electricity regulatory authority, and the
regulations covering the resolution of disputes arising within this institution.
Some of the characteristics of the regulatory framework are: the separation of
the three principal activities: generation, transmission and distribution; freedom
of prices for the supply of energy in competitive markets and a regulated price
system based on the principle of efficiency together with a regime of tenders;
and the private operation of the interconnected electricity grids subject to the
principles of efficiency and quality of service.
There is just one interconnected grid, the SEIN, and various isolated and very
small regional systems that supply electricity in specific areas.
The Ministry of Energy and Mines (MINEM) defines the policies for the energy
sector and regulates matters related to the environment. It is also responsible
for the granting, supervision, expiry and termination of licenses, permits and
concessions for generation, transmission and distribution
The Joint Management of Tariff Regulations is the executive organ of the
Energy and Mining Investment Supervisor Organism (OSINERGMIN), responsible
for proposing electricity tariffs to the management council of that entity, in
accordance with the criteria set out in the law. The System Economic Operation
Committee (COES) coordinates and operates the electricity grid. Non-regulated
customers are those that require capacity of over 1,000 KW.
The service provided by the electricity companies should meet the technical
standards, otherwise they will be subject to fines imposed by OSINERGMIN.
Generators’ remuneration for capacity has two components: 70%, called
Guaranteed Revenue, which is assigned to every plant pro rata to its firm
remunerable capacity, and the remaining 30%, called Additional Revenue, which
is distributed as a function of actual monthly dispatch. Additional Revenue will
be reducing over time to reach 20% in July 2010 and its elimination from July
2011. With this, 100% of capacity revenue will be guaranteed.
Peru
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
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DISPATCH AND PRICES
Customers with a monthly demand of less than 1 MW are considered as
regulated customers and their energy supply is defined as a public service.
However, according to Supreme Decree No 022-2009 EM, regulated customers
whose monthly demand is between 0.2 MW and 2.5 MW may opt to be non-
regulated users.
Law 28,832 authorized access to the spot market to generating and distribution
companies, together with end users with a contracted capacity of more than
10 MW.
TRANSMISSION
The transmission lines are divided into two systems, the principal and the
secondary. All the generators have access to the lines of the principal system,
which enables them to carry electricity to all users. The secondary one is of lines
connecting the generating plant to the grid or a substation with a distribution
company or end customer. Law 28,832, promulgated in 2006, also defined the
guaranteed lines and complementary services applicable to projects begun after
the promulgation of the law. The guaranteed lines are the result of a public
tender and the complementary lines are built freely and exploited with private
projects. All generating companies have access to the lines of the principal and
guaranteed system and enable electricity to be supplied to all consumers. The
transmission concession-holder receives a fixed annual remuneration plus income
from the connection tariffs and tolls based on a charge per kW. All generating
companies have access to the lines of the secondary system but are used only
to serve certain users which have to pay in relation to their use they make of
the system.
GENERATION AND DISTRIBUTION
The Efficient Development Law provides for a structure of tenders for the
acquisition of energy by distributors, establishing a mechanism that determines
prices over the term of a contract. The approval of this mechanism is important
for the generators because it sets a mechanism for determining the price over
the term of a contract which is not set by regulator.
Sales to distributors for on-sale to their regulated customers should be made
at the bar prices (analogous to the node prices in Chile) set by OSINERGMIN to
the fixed prices as defined in the public tenders. Bar prices are fixed annually,
and are the maximum prices for purchases of electricity by distributors that can
be transferred to regulated customers, except in the case of contracts signed
as a result of a public tender, in which case the prices to be transferred to the
regulated customers will be those defined in the tender.
Electricity tariffs for regulated customers include the prices for the energy and
capacity of the generation and transmission (bar prices), and the VAD
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
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(Distribution Value Added) that considers a regulated return on the capital
invested, fixed operating and maintenance costs and a standard percentage for
energy distribution losses.
The most important regulations published during 2009 include:
• Resolution OSINERGMIN No 01-2009, published on January 9, containing
the procedure for the compensation of additional variable costs and of
withdrawals without contract (RSC), indicating the recognition of the
variable costs of the units that do not operate in ideal operating conditions,
and those that operate to meet the demand of RSC. Generators that
assume the RSC will not be at risk, as they will charge at the marginal
cost and be recognized in the COES valuations also at marginal cost,
and the possible economic balances (minimum) and the additional cost
payable to the units that operate to meet the demand of the RSCs, will
be compensated in the COES through a charge to be included in the
connection toll of the principal transmission system.
• Resolution OSINERGMIN No 02-2009, published on January 9, containing
the procedure for the compensation for additional generation, indicating
that generators will collect monthly the amounts corresponding to the
unit charge for additional generation, above the base of their supply
contracts, including the assignment of the RSCs and the contributions from
the other participants in the Short-Term Market (amount collected). The
COES will then transfer the amount collected for the additional generation
to Electroperú which, by provision of the MEM, provides the additional
generation.
• On February 19, the MEM promulgated Emergency Decree 023 that
gives priority to the assignment of volumes of natural gas to the new sale
contracts, in the following order:
1. Natural gas distribution concession-holders for the public service.
2. Dual combined-cycle thermal plants entering into operation before
December 31, 2011.
3. Dual open-cycle thermal plants entering into operation before
December 31, 2011.
4. Other customers.
• On April 15, RM No 175-2009-MEM/DM approved the discount factor to be
applied to hydroelectric projects in tenders for electricity supplies, setting a
factor of 0.85.
• On July 4, OSINERGMIN approved the procedure for determining the
incentive for the contracting of firm service and efficiency in the use of
natural gas. These are intended as regulations corresponding to article
5 and the Fourth Transitory Provision of Legislative Decree No 1041,
which established measures for motivating the contracting of natural gas
transportation in the Firm Service mode on the Principal Network, for
electricity generating companies, through compensation that recognizes
the fixed payments made by generators with respect to firm natural gas
transportation contracts on the Principal Network, for the natural-gas
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transportation capacity paid but not used in the generation of electricity;
and to increase efficiency in the use of natural gas via high-yielding thermal
electricity plants.
• On August 27, it was reported that the Camisea consortium, headed by the
Argentine oil company Pluspetrol, will sign an addendum to its contracts
for blocks 88 and 56 of Camisea to reduce the level of export volumes.
Under the new terms, the production of block 88 will be reserved exclusively
for the domestic market between 2010 and 2015. The consortium may
therefore sign new supply contracts for 4.2 MM3/d from block 88 in the
next months. The consortium was also committed to carry out an aggressive
exploration plan of US$ 200 million in block 88 in order to find new
reserves.
• Pluspetrol invited those interested in obtaining natural gas from Camisea
block 88 to present bids under a tender for total available gas of 2.1
MMm3/d. The tender bases were published on November 23, 2009 and
it is expected that the tender process will be completed in February 2010.
The start of deliveries would be from July 2012, and last for a period of 10
years. This tender will be focused on supplying gas to new projects.
• On November 2, the MEM published a supreme decree that eliminates
exclusivity in the granting of temporary concessions for carrying out studies
for generation, substation and transmission line projects. These concessions
may be awarded to more than one group. In the case of temporary
concession already awarded, preference will be given to the developer
that requests a definitive concession. The modification to the electricity
concessions law states that the due performance guarantee for carrying out
the works will be 1% of the project’s budget, with a ceiling of around 1.78
million soles (US$ 0.6 million).
• On November 13, Emergency Decree No 109-2009 was published, which
authorizes that the electricity generator with the largest generating capacity
in which the state has a majority holding, to sign electricity export contracts
in order to meet temporary requirements during the term of this decree
(until April 30, 2010).
It also includes provisions related to the market, export sales prices,
compensation for connection tolls, contracted capacity and the adaptation or
environmental management instruments. The Peruvian grid has exported energy
to Ecuador since November 16, although in very limited quantities.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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51
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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02. ELECTRICITY GENERATION
Enersis participates in electricity generation in Peru through Endesa Chile and its
subsidiary Edegel, in which it directly and indirectly holds 37% of the share capital.
The company had an installed capacity of 1,667 MW which represents 27% of the
country’s total installed capacity.
The electricity generation of the Enersis Group was 27% of the total generated in
Peru, while its physical sales were 31% of the total sold.
Other generators connected to Peruvian electricity system are Electroperú
and Egenor.
EDEGEL
This company is located in the sorroundings of Lima city. It has nine plants with a
total capacity of 1,667 MW. Only two units are thermal plants that use natural gas as
their generating fuel.
The net generation of Edegel was 8,163 GWh, 0.8% more than in 2008, and its
physical sales were 8,321 GWh, a decline of 1.7% from the previous year.
On October 9, 2009, Endesa Chile acquired 29% of Edegel at market price from
Generalima S.A.C., a company which is in turn a subsidiary of Endesa Latinoamérica.
With this, Endesa Chile became the direct and indirect holder of 62% of the shares
of Edegel.
PROJECTS CARRIED OUT
SANTA ROSA
This project contemplated the expansion of the Santa Rosa thermal plant by the
construction and start-up of a gas turbine in open cycle of 189 MW gross capacity,
operating with natural gas from Camisea.
On August 1, 2009, the thermal unit successfully completed its synchronization with
the Peruvian grid and entered commercial operations on September 2, four months
ahead of schedule, with 193.18 MW of gross capacity.
On November 28, was recognized an increase in power of 6.65 MW, therefore,
installed capacity of the new unit reached 199.83 MW.
Moreover, on April 30, 2009 was recognized a power increase of 0.61 MW in the
TG7 of Santa Rosa thermal plant, reaching a total of 200.44 MW.
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PROJECTS UNDER STUDY
Studies were made during 2009 to identify suitable locations for the installation of
combined-cycle thermal plants of up to 400 MW.
CURIBAMBA
The feasibility study was completed in 2009 for the Curibamba hydroelectric project,
which would have an installed capacity of 188 MW and be located in the department
of Junín, using the waters of the rivers Comas and Uchubamba in the basin of the
river Tulumayo.
RENEwABLES
En el campo de las energías renovables, se ha continuado la labor de creación de
una cartera de proyectos eólicos, habiéndose alcanzado 1.000 MW en concesiones
temporales, iniciándose la campaña de medición de cara a evaluar el potencial de
dichas áreas.
03. ELECTRICITY DISTRIBUTION
Enersis participates in electricity distribution in Peru through its subsidiary Edelnor in
which it directly and indirectly holds 58% of the share capital.
The market share of our subsidiary, in terms of physical sales, was around 20%.
Other distributors that participate in the Peruvian electricity system are Luz del Sur,
Electro Sur, Electrocentro, ENOSA, Hidrandina and ENSA.
EDELNOR
The concession zone granted to Edelnor covers a total area of 2,440 km2, of which
1,838 km2 relate to northern Lima and Callao.
Edelnor is the electricity public-utility concession-holding company for the northern
part of the Lima metropolitan area and the province of Callao, plus the provinces of
Huaura, Huaral, Barranca and Oyón. It serves 52 districts exclusively and shares with
the southern zone distribution company in another 5 districts. In the metropolitan
area, Edelnor’s concession consists mainly of the industrial part of Lima and some
populous districts of the city.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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Edelnor provides electricity services to 1,060,508 customers, a 3.2% increase over
2008. Of these, 93.8% are residential, 3.9% commercial, 0.1% industrial and 2.3%
other customers.
Physical energy sales in 2009 were 5,716 GWh, representing a 2.1% increase over
2008. The sales growth is explained by the higher consumption by the residential and
commercial sectors.
Edelnor’s energy purchases amounted to 5,790 GWh, an increase of 2.5% over
previous year.
Energy losses at December 2009 were 8.1%, a slight decrease from the rate of 8.2%
obtained in 2008.
Regarding tariffs, these are set every four years, the last being in November 2009,
resulting in a reduction in the Distribution Value Added of 1.1%, while the charge for
sub-transmission rose by 6.5%.
On October 15, Enersis S.A. acquired 153,255,366 shares, representing 24% of
the capital, of its subsidiary Empresa de Distribución Eléctrica de Lima Norte S.A.A.
(Edelnor). The purchase was made from Generalima S.A.C., a Peruvian subsidiary
of Endesa Latinoamérica S.A., the direct parent of Enersis. With this, the direct and
indirect shareholding of Enersis S.A. in Edelnor rose from 33.53% to 57.53%.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
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Other Businesses
CAM
Enersis, directly and indirectly, holds 100% of Compañía Americana de
Multiservicios Ltda. (CAM). Its business is to provide electrical and related-
business solutions in three lines of action: metering and certification,
commercialization and logistics, and electrical works.
The parent company in Chile and its subsidiaries in Argentina, Brazil,
Colombia and Peru, have consolidated a regional presence, expanding their
customer portfolio in the electrical, sanitation, gas, industrial, mining and
telecommunications sectors.
CAM obtained its ISO 9001:2000 certification for all its subsidiaries, thus
complying with the corporate objective of cultivating a culture oriented to
quality, based on the commitment to achieve organizational efficiency and
continuous improvement.
During 2009, Cam reoriented its objectives in order to give priority to actions and
resources providing it with short-term returns for achieving liquidity and facing
the new global economic scenario.
In this area, notable was the implementation of large electrification projects
for Distriluz in Peru, of control and automation for hospitals in Chile, and of
metering concentrated in Colombia. Important metering sales contracts were
also signed with the Bolivian company Integra S.A. and the Brazilian companies
CEMIG and AES Eletropaulo; the supply of electrical materials to Meta Petroleum
Corp in Colombia; and services for the modernization of five hydroelectric plants
for Endesa Chile.
The Argentine subsidiary signed an important agreement with the National
Institute of Technology (INTI) in order for its laboratory to form part of the
Argentine Calibration and Metering Services (SAC), and by which it will have
a documented and implemented system of quality and the adequate technical
competence for granting test certificates, in compliance with Regulation
IEC 17025.
New strategic alliances and commercial agreements were arranged with a series
of companies, like Siemens, Mundo Color Internacional (MCI) and Industrias
Derivadas del Aluminio S.L. (INDAL).
In Chile, it obtained the certification of its Large Works and Logistics areas
with respect to operating excellence under the standards ISO 14.001:2004
(environmental management system) and OHSAS 18.001:2007 (safety and
occupational health management system). Also important were the improvement
of the Administration Fund function and the fixed-cost reduction plan..
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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MANSO DE VELASCO
Inmobiliaria Manso de Velasco Ltda., a company in which Enersis directly
and indirectly has a 100% shareholding, focuses its business on real-estate
development projects and on advising Group companies in Latin America in
everything related the purchase, sale and development of real-estate.
During 2009, progress was made on the urbanization and commercialization
of the ENEA project for the industrial sector, and the selling of properties in the
municipality of Santiago in Chile. The project has a complete infrastructure which
has expanded in the last year with new equipment and green areas which offer
better service conditions to the sector and its users.
Included in the ENEA project is the company Aguas Santiago Poniente S.A.,
which provides sanitation services related to this real-estate development.
In addition, there is the Tapihue Project which contemplates plots corresponding
to land associated with the Tapihue, Amancay (Plot B) and La Petaca farms.
The business of Manso de Velasco also includes the administration of 24,030 m2
of construction corresponding to office buildings which are mainly rented to
related companies and other parties.
SYNAPSIS
Synapsis Soluciones y Servicios IT Ltda. is an information technology (IT)
professional services company in which Enersis directly and indirectly has a
100% holding.
With more than 21 years’ experience in the market, it has positioned itself as a
Latin American leader in the field of IT solutions, mainly in the services, energy,
telecommunications and public administration markets.
Located in Santiago, Chile, it has offices in the principal cities in the region:
Buenos Aires, Argentina; Rio de Janeiro, Fortaleza and a commercial office in Sao
Paulo, Brazil; Bogotá, Colombia, and Lima in Peru, plus a commercial office in
Panama City, thus providing coverage of a large part of the Latin America.
The most important areas of Synapsis’s business relate to outsourcing and
infrastructure services, data centers, remote services applications (ASP), SAP
solutions and services for public utilities, government and other industries,
Software Factory (SWF), IT solutions for utilities and other energy companies plus
the oil industry and government, and technical, automation, remote control and
AMI systems for the industries mentioned.
During recent years, the company has increased its presence in the IT market.
It manages six integrated and strategically positioned data centers, with a
highly-qualified professional team and providing guaranteed high-availability
services. It also has high security standards, obtaining in 2009 the ISO/IEC
20.000-1 certification for IT services management and ISO/IEC 27.001, related to
information security management.
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An important outsourcing services contract with ECOPETROL was renewed and,
in Colombia, the outsourcing contract was renewed with the health provider,
Nueva E.P.S.
New business was also won during the year with customers like Colinversiones
(Colombia), ChileCompra (Chile), Lipigas (Chile), Abastible (Chile), Peugeot-
Citröen (Argentina), Unimed (Brazil), Essalud (Peru) and the Superintendency of
Tax Administration (Peru), among others.
Among the important projects and services in production are the operation
of computer infrastructure for ESSBIO (Chile), and the SAP-ISU solution, ERP
implementation and use in pilot mode of the SAP-ISU for DPEC (Argentina). Also
the movement of servers for Ecopetrol (Colombia) to a new data center, new
internet access services for ChileCompra, various applications, developments
and improvements to the technological systems of the IPS system in line with
the social-security reforms in Chile, and the entry in production of the invoicing
solution for the Transportadora de Gas Internacional (Colombia), the project for
the federal administration of public revenues, in Argentina, and IP telephonic
plants implemented for Essalud, in Peru, plus a call center system for the
government’s Superintendency of Tax Administration.
Synapsis continued to work in obtaining key certifications and accreditations for
its business. As well as the ISO certifications with respect to information security
already mentioned, the company renewed its ISO certifications 9001:2008
(Brazil, Chile, Colombia and Peru) and accredited its software development
projects Management Process under the standards set by Capability Maturity
Model Integrated (CMMI), achieving the accreditations CMMI Level 3 in Brazil,
CMMI Level 2 in Chile and Peru, plus Level C of the accreditation of Brazilian
Software Processes Improvement. The company also attained the SOA Business
Process de Microsoft (MS) competence, important progress with respect to the
program for gold members of MS.
Among the alliances agreed by the company in 2009 are the IBM name
agreement covering the whole of Latin America, the SAP Channel category
obtained in Argentina and the accreditation of the Silver Partner of Zimbra
covering Peru for the provision of messaging solutions and collaboration based
on the internationally best-known open-code technology.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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DIRECT AND INDIRECT PARTICIPATIONS (*)
ARGENTINA
Costanera
El Chocón
Edesur
CTM
TESA
CEMSA
CAM Argentina
Synapsis Argentina
Gasoducto Atacama Argentina
CHILE
Endesa Chile
Celta
Endesa Eco
Pangue
Pehuenche
Canela
HidroAysén
GasAtacama
Chilectra
Transquillota
CAM
Inmobiliaria Manso Velasco
Synapsis
Ingendesa
Túnel El Melón
GasAtacama Chile
Gasoducto Tal Tal
Electrogas
GNL Chile
GNL Quintero
Business
Participation
Gx
Gx
Dx
Tx
Tx
Tx
Ox
Ox
Ox
41.85%
39.21%
65.39%
54.30%
54.30%
26.99%
100.00%
100.00%
29.99%
Business
Participation
Gx
Gx
Gx
Gx
Gx
Gx
Gx
Gx
Dx
Tx
Ox
Ox
Ox
Ox
Ox
Ox
Ox
Ox
Ox
Ox
59.98%
59.98%
59.98%
56.97%
55.57%
44.99%
30.59%
29.99%
99.09%
29.99%
100.00%
100.00%
100.00%
59.98%
59.98%
29.99%
29.99%
25.49%
19.99%
12.00%
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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BRAZIL
Endesa Brasil
Fortaleza
Cachoeira Dourada
Ampla
Coelce
CIEN
CAM Brasil
Synapsis Brasil
Ingendesa Brasil
COLOMBIA
Emgesa
Codensa
Cundinamarca
CAM Colombia
Synapsis Colombia
PERU
Edegel
Chinango
Edelnor
CAM Perú
Synapsis Perú
Notes:
Gx: Generation.
Dx: Distribution.
Tx: Transmission/Trading.
Ox: Others.
(*) Considered as Enersis Group operating companies.
Business
Participation
Gx, Dx, Tx
Gx
Gx
Dx
Dx
Tx
Ox
Ox
Ox
54.30%
54.30%
54.09%
70.22%
35.25%
54.30%
100.00%
100.00%
59.98%
Business
Participation
Gx
Dx
Dx
Ox
Ox
16.12%
21.73%
8.77%
100.00%
100.00%
Business
Participation
Gx
Gx
Dx
Ox
Ox
37.46%
29.97%
57.53%
100.00%
100.00%
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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PERIMETER OF CORPORATE PARTICIPATIONS OF ENERSIS
Endesa
Market Place S.A.
15.00%
99.991%
Compañía Americana
de Multiservicios Ltda.
CAM
99.99997%
99.99%
Inmobiliaria
Manso de Velasco Ltda.
Synapsis Soluciones
y Servicios IT Ltda.
0.01 %
0.009%
0.00003 %
99.99993%
0.00007%
CAM
Perú Ltda.
0.000062%
57.50%
Soc. Agrícola
de Cameros Ltda.
99.999938%
CAM
Colombia Ltda.
25.82%
Aguas Santiago
Poniente S.A.
26.2%
Konecta
Chile S.A.
99.9998%
0.0002%
94.90%
2.4%
Synapsis
Perú Ltda.
Synapsis
Colombia Ltda.
0.2%
53.06%
2.5%
99.998243 %
Chilectra
Inversud S.A.
0.001757 %
95.00%
CAM
Argentina Ltda.
4.9988 %
55.00%
0.0012%
Agrícola e
Inmobiliaria Pastos
Verdes Ltda.
49.00%
Sistemas
SEC S.A.
55.00%
Const. y Proyectos
Los Maitenes S.A.
94.9999 %
Synapsis
Argentina Ltda.
99.90%
Luz Andes S.A.
0.10%
5.0001 %
0.0002%
99.9998%
Empresa Eléctrica
de Colina S.A.
99.99985 %
CAM Brasil
Multiservicios Ltda.
0.00017%
0.05 %
99.95 %
Synapsis
Brasil Ltda.
Argentina
Brazil
Chile
Colombia
Peru
España
0.012666 %
59.98%
99.0778566%
Sociedad
Portuaria Central
Cartagena S.A.
4.90 %
Inversora
Condensa S.A.S.
100 %
Codensa S.A.
9.35%
12.47 %
27.1941%
Distrilec
Inversora S.A.
0.8875%
23.4184%
5.20 %
Inversiones
Codensa S.A.
94.50 %
48.997%
Deca S.A.
82.34%
EEC S.A.
56.3577%
16.0248%
Edesur S.A.
20.8477%
50%
Sacme S.A.
Edelnor S.A.
51.684%
Inversiones
Distrilima S.A.
29.025%
Compañía Peruana
de Electricidad S.A.
24.00%
34.9895%
15.3819%
0.10%
50.90%
22.060295%
Endesa Brasil S.A.
4.657017%
4.347304%
Endesa Brasil
Comercio e Serviços S.A.
99.99%
99.95%
Eólica Fazenda Nova
10.344606%
13.679789%
13.679789%
10.344606%
21.022414%
Ampla
Investimentos
e Serviços S.A.
46.886283%
46.886%
Ampla Energia
e Serviços S.A.
21.022%
36.430633%
63.569367%
2.273448%
Investluz S.A.
Coelce S.A.
100%
CIEN S.A.
100%
99.605880%
C.G.T.
Fortaleza S.A.
Cachoeira
Dourada S.A.
56.594007%
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PÁGINA
SIGUIENTE
PERIMETER OF CORPORATE PARTICIPATIONS OF ENDESA CHILE
99.51%
Enigesa S.A.
0.49%
92.65%
Pehuenche S.A.
94.97519%
Pangue S.A.
0.01382%
Central Eólica
Canela S.A.
75%
99.99%
Endesa Eco S.A.
0.01%
50.99995%
Centrales
Hidroeléctricas
de Aysén S.A.
0.00005%
99.00%
0.51%
Aysén
Transmisión S.A.
99.9911%
Túnel
El Melón S.A.
0.00886%
50.00%
Consorcio Ingendesa
Minmetal Ltda.
98.75%
Ingendesa S.A.
1.25%
33.33%
GNL Chile S.A.
20%
GNL Quintero S.A.
100%
Cía. Eléctrica
San Isidro S.A.
99.942802%
Cía. Eléctrica
Tarapacá S.A.
0.057198%
50.00%
Sociedad Consorcio
Ingendesa-Ara Ltda.
50.00%
Consorcio
Ara-Ingendesa Ltda.
33.33%
Consorcio
Ara-Ingendesa
Sener Ltda.
50.00%
Transmisora Eléctrica
de Quillota Ltda.
0.02125%
99.95%
Electrogas S.A.
Argentina
Brazil
Chile
Colombia
Peru
Islas Caymán
100%
42.50%
Inversiones
Electrogas S.A.
99.9%
Progas S.A.
0.1%
Energex Co.
99.99%
Inversiones
Endesa Norte S.A.
0.01%
0.05%
99.90%
GasAtacama
Chile S.A.
99.877%
0.1226%
Gasoducto
Taltal S.A.
Inversiones
GasAtacama
Holding Limitada
50.00%
99.997706%
0.001147%
GasAtacama S.A.
99.90%
0.1%
Atacama Finance Co.
57.23%
0.03%
Gasoducto Atacama
Argentina S.A.
42.71%
100%
Gasoducto Atacama
Argentina S.A.
Sucursal Argentina
41.9411%
Hidroinvest S.A.
54.1535%
2.4803%
15.35%
15.35%
59.00%
Hidroeléctrica
El Chocón S.A.
6.1938%
Termoeléctrica
Manuel
Belgrano S.A.
Termoeléctrica
José de
San Martín S.A.
5.5055%
5.5055%
Endesa Cemsa S.A.
(CEMSA)
45.00%
59.98%
Endesa
Argentina S.A.
99.657366%
0.342634%
Southern Cone Power
Argentina S.A.
2.0%
98%
51.932539%
5.5%
Endesa
Costanera S.A.
12.3325533%
Distrilec Inversora S.A.
0.887466%
Ingendesa
Do Brasil Ltda.
1.00%
99.00%
Chinango S.A.C.
60.99845%
80%
36.268461%
26.873987%
Generandes
Perú S.A.
54.19961%
Edegel S.A.A.
4.184465%
Endesa Brasil S.A.
46.886283%
Ampla Investimentos
e Serviços S.A.
Emgesa S.A.
Ampla S.A.
46.886283%
63.569367%
Investluz S.A.
Sociedad Portuaria
Central Cartagena
S.A.
56.594007%
4.90%
36.430633%
94.95%
CIEN S.A.
2.273448%
Coelce S.A.
100%
Inversora Codensa
S.A.S.
0.0000018%
Transportadora
de Energía
(TESA)
99.999982%
Cía. de Transmisión
del Mercosur S.A.
(CTM)
99.99%
100%
C.G.T.
Fortaleza S.A.
99.605880%
Cachoeira
Dourada S.A.
99.99%
Endesa Brasil
Comercio e Serviços S.A.
99.95%
Eólica Fazenda Nova
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enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
348
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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Sustainability
01. SUSTAINABILITY POLICY
In Enersis, we assume our role as a corporate citizen from the perspective that
our actions affect and are affected by a series of socio-economic and cultural
relations in the surroundings in which we operate. We therefore promote a
balanced development of our businesses, stimulating economic growth and
promoting the social development of the communities, while contributing to the
preservation and care of the environment.
Our actions are supported by three basic pillars in sustainable development: to
contribute to economic development, to social progress and to the ecological
balance of our surroundings.
These criteria form part of the central actions for ensuring the profitability and
leadership of our companies over the long term and are firmly entrenched in our
corporate values.
PRINCIPLES FOR SUSTAINABLE DEVELOPMENT
The Sustainability policy of the Enersis Group is enshrined in the Seven
Commitments for Sustainable Development, guidelines made public by our
parent, ENDESA, in 2003. These principles are aligned with the company’s
corporate vision, mission and values and are the criteria that guide the balanced
compliance of our responsibilities in the economic, social and environmental
spheres.
Good Governance
Commitment with good governance
and ethical behavior
Innovation
Commitment with efficiency
Community
and the Environment
Commitment with
environmental protection
Environmental
Dimension
Economic
Dimension
Our People
Commitment with the personal
and professional health, safety
and development of our personnel
Social
Dimension
Results Orientation
Commitment with the creation
of value and profitability
Our Environment
Commitment with the development
of the companies
in which we operate
Customer Orientation
Commitment with
quality of service
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FOCUS ON EDUCATION
As a business group, we believe that Latin America should venture with a long-
term view, in the education of our children and young people, the pillars of the
region’s future growth. We have therefore adopted as an action focus of our
sustainability policy, the support, promotion and development of activities in the
area of education.
We are firmly convinced that to achieve greater development and social equity,
both the public administration and private-sector companies should concentrate
a large part of their efforts on improving the quality of education, a fundamental
tool for facing the challenges that society imposes on us every day.
We have therefore assumed as the Enersis Group the challenge of contributing
to the improvement of education through concrete actions that impact and
contribute to some degree in improving the quality of life of the 45 million
people to whom we provide service.
02. ACTIONS 2009
This section summarizes the activities of our companies in Latin America; actions
with a clear focus on programs linked to education, whose intent is to contribute
to economic development, social progress and the environmental balance in
each of the countries where we operate.
ARGENTINA
The Energy Journey
Edesur, convinced of the responsible attitude of the consumer and the
development of the community is achieved through education, has directed its
resources to this kind of action. The principal actions of 2009 include the El Viaje
de la Energía (the energy journey) education program, a project that benefited
794 primary and secondary schools with teaching material covering the most
important aspects of electricity.
Solidarity Volunteers Network
Endesa Costanera, jointly with the Red Solidaria de Voluntarios (solidarity
volunteers network) supported the Fundación Progresar, an entity dedicated to
strengthening the reading habits of children at social risk.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
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135
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
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BRAZIL
Ampla Cultural Consciousness
This project, developed by Ampla, benefited a total of 35,000 people in 2009
from the districts of the company’s concession area, especially Angra and
Itaboraí. This initiative provided access to culture with performances of music,
dance, theatre and art exhibitions.
ECOELCE
Coelce has followed this program since 2007, for motivating the practice
of the selective recycling of waste in exchange for discounts on energy bills.
During 2009, the program attracted 100,000 new customers to reach a total
of 217,000, with 7,530 tons of recycled waste and 850,000 reales in bonuses
distributed to the lowest-income customers (who form part of the program).
ECOELCE received the United Nations Prize in 2008 as one of the 10 Best
Sustainability Programs on the Planet.
Didactic Concerts
By this action, Endesa Cachoeira seeks to train young talent, some of whom are
at social risk, in the technique and practice of various instruments that comprise
a symphony orchestra.
The project is developed for the Orquesta Jovem Sinfônica de Goiás (Goiás
Young People Symphony Orchestra) and has the support of the government of
the state of Goiás.
Mulheres Integradas
A training course for poor women from the town of Garruchos. The initiative of
Endesa CIEN enabled the training of 40 people in the making and decoration
of fabrics, and later to promote the creation of a commercial activity that would
generate income for the whole collective. The project was carried out with Senai,
a professional formation organization in Brazil.
Athletics Day
This event, organized by Endesa Fortaleza, enabled the formation of teachers
of public primary and secondary schools in the Caucaia council in areas related
to physical education, so as to apply these specific techniques and training
programs to pupils of the schools talking part in this initiative.
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
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CHILE
Corporate Volunteers
The Enersis Group Corporate Volunteers are directed to cover the specific
needs of the communities in the area of education. This has been open to all
employees of the Group’s electricity generating and distribution companies
since 2009. Some companies also organize their own volunteer initiatives, as
is the case of Endesa Chile. The program groups together two main projects:
Encumbra tu Idea and Development Activities. During 2009, the first of
these had the participation of 23 volunteers and benefited 145 children from
kindergarten to the last year of primary school at the Miravalle School, located in
the district of Peñalolén, while 80 volunteers collaborated in the second, making
five involvements at the same school.
Bicentenary Project “Chile in Four Moments”
Within the bicentenary project “Chile in Four Moments”, the Enersis Group,
together with El Mercurio newspaper and Universidad de los Andes, developed
a series of activities in order to involve more Chileans in this important project, a
document informing the public about aspects of daily life in the 18th, 19th and
20th Centuries, published since 2008 and until 2010 through El Mercurio on a
free basis. In 2009, we reached more than 300,000 readers with each volume,
donated these to over 85 schools throughout Chile and were seen by more than
500 thousand people in exhibitions held in the metro-train network in Santiago.
Energy for Education Program
The Energy for Education Program is a response to the commitment with the
development of the local communities in the areas of Endesa Chile’s plants. At
the end of 2009, the schools network, located in 16 villages between the regions
of Tarapacá and Los Ríos, comprised a total of 41 educational establishments
with 7,000 pupils from socially-vulnerable sectors.
The objective is to collaborate in the generation of more opportunities for
children and young people in order to seek ways to improve the quality of school
education.
Copa Chilectra 2009
The Chilectra Cup was organized for the eighth consecutive year. This is a
feminine and masculine baby-football tournament in which over 45,000 children
took part of up to 14 years of age. In this way, the company wishes to encourage
the practice of sport in order to combat sedentarism, alcoholism and drug
addiction. The tournament, which Chilectra organizes jointly with Fundación Iván
Zamorano, Unicef and Conace, using the network of multi-purpose fields that
form part of the lighting program of the distributor, which totaled 154 sports
areas by the end of 2009.
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
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COLOMBIA
Public Territory Management Diploma
As part of the municipal institutional strengthening program, Emgesa
is developing jointly with the Pontificia Universidad Javeriana the Public
Territory Management Diploma, an initiative having the support of public
employees, councilors and social leaders of the municipalities of San Antonio
del Tequendama, El Colegio, Sibaté, Tocancipá, Hobo, Yaguará, Gigante and
Campoalegre.
Roving Electricity Walk
The Roving Electricity Walk continued to operate in 37 districts of Cundinamarca,
with the participation of 47,982 children. The playful-educational space
presented by Codensa comprises 10 interactive modules through which all the
participants have the opportunity to learn in an entertaining way. The processes
of generation, transmission, distribution and trading of electricity are explained
and messages are shared regarding the conscious, safe and productive use of
energy, prevention of accidents and care for the electricity infrastructure.
PERU
Mathematics Program for Everyone
Since 2005, Edegel has participated as sponsor of the Mathematics for Everyone
program, an initiative that benefits the districts of Chosica (Lima), Ventanilla
(Callao) and San Ramón (Junín). The program seeks to improve the learning of
mathematics of schoolchildren through a novel methodology. At the same time,
teacher training workshops, learning routes and training videos are arranged.
Under this initiative, 5,413 books have been donated and 108 teachers trained
from 12 educational institutions close to the company’s plants.
Nuevo Pachacútec Superior Technological Institute
The Pachacútec Institute is an education program that Edelnor has been running
jointly with the Bishopric of Callao since 2004, which opens the window of
opportunities to young people from poor homes to enter the labor market
directly they complete their studies, thus generating a better quality of life for
them and their families.
This educational project has been consolidated in the education of young people
through the Electricity Technical-Professional Career in which some 100 students
already participate.
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03. AWARDS
During 2009, Enersis and its companies in Latin America were recognized for
their actions in various areas, including the following notable awards:
Recognition
Company
Country
Awarded by
Energy Company of the Year Latin America
Enersis
“Honor Prize in Safety and Ocupational Health" Enersis
Chile
Chile
The New Economy
Chilean Safety Association (ACHS)
Top 3 in ranking Best Managed
Company - Utilities
Enersis
and Endesa Chile
Chile
Euromoney
Best Anual Report - Group
Enersis, Endesa Chile
and Chilectra
Chile
"Gestión Magazine and
PricewaterhouseCoopers”
Promotion of Youth Employement Award del
Empleo Juvenil
Edesur
Argentina
Sixth Edition of Responsabilidad Social
Comunicativa
Recognition of the education program El Viaje
de la Energía
Prize in the category of Audiovisual Media
Management
Edesur
Argentina
Government of the city of Buenos Aires
Endesa Brasil
Brazil
ABERJE
Top 10 Best Companies in Corporate Citizenship Ampla
Brazil
Gestão&RH Editora
Best Distribution Company in Brazil
Coelce
Brazil
Asociação Brasileira de Distribuidores de
Energía Eléctrica (Abradee)
Top 20 in Ranking Model Company in Social
and Environmental Practices
Coelce
Brazil
"Guía de EXAME DE SUSTENTABILIDAD”
Second place in the ranking of the Most
Admired Companies in Chile
Endesa Chile
Chile
Diario Financiero and
PricewaterhouseCoopers
Ten Best Companies for Parents who Work
Endesa Chile
Corporate Governance Best Company - Utilities
Endesa Chile
Chile
Chile
Fundación Chile Unido and Ya Magazine
MZ Consult
Bicentenial Award
Central Pangue
Chile
Bicentenial Commision
Top 10 in V Ranking RSE 2009
Chilectra
and Endesa Chile
Chile
PROhumana Foundation, CPC and Qué
Pasa Magazine
Top 10 in Ranking EVA
Chilectra
Chile
Econsult and Qué Pasa Magazine
Best Anual Report - Utilities
Chilectra
Chile
"Gestión Magazine and
PricewaterhouseCoopers”
Best Environmental Performance and Best
Corporate Governance
Emgesa
Colombia
ANDESCO
Environmental Award
First Place Inovative Proyect
Emgesa
Codensa
Colombia
AEDME
Colombia
ASOCODIS
First place in the Large Company category in the
RPP Integration and Solidarity competition
Edelnor
Peru
Radio Programas del Perú
6th Perú 2021 prize for Corporate Social
Responsibility
Edegel
Peru
Perú 2021 and the Pontificia Universidad
Católica del Perú
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
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04. HUMAN RESOURCES
WORKING ENVIRONMENT
The working environment and commitment 2009 survey was carried out in
December, in which 89.37% of the company’s personnel participated.
The purpose of the survey was to know the perception of all the people working
for Enersis, on certain important aspects of work, their environment and the
company in general.
This will permit and contribute to enriching the vision and perspective of the
employees with respect to the company and then design corrective actions and
work on the areas for improvement identified.
TRAINING
Training was oriented to the development of the professional and technical skills
necessary for achieving and maintaining the required levels of efficiency.
Apart from training in matters like computer technology, languages, human
resources and managerial formation, training this year placed a special emphasis
on occupational health and safety (27% of training hours) and on economic-
financial matters linked to the International Financial Reporting Standards,
designed specifically for the company (17.5% of training hours).
The leaders development program was also carried out for all the company’s
heads. Training programs totaled 18,499 hours of training which implied
an average of 62 hours per employee, distributed as follows: 11.5% for
management, 76.2% for professionals and 12.4% for technicians and
administrative staff.
OTHER ACTIVITIES
Enersis arranged during the year various activities oriented to the welfare and
satisfaction of its personnel and their family groups. Some of these were:
• Summer and winter recreational programs.
• Celebration of theme days.
• Christmas party for the children.
• End of year party for the employees.
• Sports activities and workshops.
• Talks to employees on the renewal and improvement of the benefits
comprising the Integral Health Plan.
• Recognition of working experience.
enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
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73
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84
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
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Identification of the Subsidiary
and Associate Companies
AGRÍCOLA DE CAMEROS
Name
Sociedad Agrícola
de Cameros Limitada
Kind of company
Limited partnership
Tax No.
77.047.280-6
Address
Camino Polpaico a Til-Til,
S/N Til-Til
Telephone
(56 2) 378 4700
Subscribed and paid capital (ThCh$)
5,738,046
Corporate Purpose
The exploitation of agricultural land.
Business
Real estate.
Principal executive
Hugo Ayala Espinoza
Enersis stake
(direct and indirect)
57.50% - Unchanged.
AGRÍCOLA E INMOBILIARIA
PASTOS VERDES
Name
Agrícola e Inmobiliaria
Pastos Verdes Limitada
Kind of company
Limited partnership
Tax No.
78.970.360-4
Address
Américo Vespucio 100,
Pudahuel, Santiago, Chile
Telephone
(56 2) 601 0601
Subscribed and paid capital (ThCh$)
37,029,390
Corporate Purpose
The exploitation of agricultural
land and all kind of real estate
activities, including the urbanization,
commercialization and disposal of
land in any legal form.
Business
Real estate.
Principal executive
Bernardo Küpfer Matte
Enersis stake
(direct and indirect)
55.00% - Unchanged.
AGUAS SANTIAGO PONIENTE
Name
Aguas Santiago Poniente S.A.
Kind of company
Private company, subject to the
regulations for publicly-held
companies
Tax No.
96.773.290-7
Address
Américo Vespucio 100,
Pudahuel, Santiago, Chile
Telephone
(56 2) 601 0601
Subscribed and paid capital (ThCh$)
6,601,121
Corporate Purpose
Exclusively to establish, construct
and exploit public utilities for water
production and distribution; sewage
collection, treatment and disposal,
and other functions expressly
authorized by Law 382 of 1988 and
its amendments.
Business
Water and related services.
Board of directors
Víctor M. Jarpa Riveros
Cristóbal Sánchez Romero
Andrés Salas Estrades
Luis F. Edwards Mery
José M. Guzmán Nieto
Principal executive
Jorge Alé Yarad
Enersis stake
(direct and indirect)
55.00% - Unchanged.
AMPLA ENERGÍA
Name
Ampla Energia e Serviços S.A.
Kind of company
Publicly-held company
Address
Praça Leoni Ramos, N° 01 – São
Domingos, Niteroi, Río de Janeiro,
Brazil
Telephone
(55 21) 2613 7000
distribution and sale systems, and
provide related services that have
been or may be conceded; carry out
research in the energy sector and
participate as a shareholder in other
companies in the energy sector.
Business
Distribution of electricity.
Board of directors
Mario F. de Melo Santos
Antonio B. Pires e Albuquerque
Nelson Ribas Visconti
Eduardo dos Santos Machado
Cristóbal Sánchez Romero
José Alves de Mello Franco
Ramiro Alfonsín Balza
(Chief Regional Planning and Control
Officer, Enersis)
Ramón Castañeda Ponce
Luiz Felipe Lampreia
Principal executives
Marcelo Llévenes Rebolledo
José Alves de Mello Franco
Luciano A. Galasso Samaria
Carlos E. Naegele Moreira
Claudio Rivera Moya
Luiz Carlos Bettencout
Déborah M. Rosa Brasil
Albino Motta da Cruz
André Moragas da Costa
Aurelio R. Bustilho de Oliveira
Enersis stake
(direct and indirect)
70.22% - (+0.34% variation)
Proportion of Enersis’s assets
1.85%
Subscribed and paid capital (ThCh$)
279,961,754
AMPLA INVESTIMENTOS
Corporate Purpose
Study, plan, project, construct
and explore electricity production,
transmission, transformation,
Name
Ampla Investimentos e
Serviços S.A.
enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
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information, inspection and
development of projects and works.
AYSÉN TRANSMISIÓN
Type of company
Publicly-held company
Address
Praça Leoni Ramos, N° 01 – parte
São Domingos, Niterói, Río de
Janeiro, Brazil
Address
Santa Rosa 76, piso 10,
Santiago, Chile
Telephone
(562) 630 9000
Telephone
(55 21) 2613 7071
Corporate Purpose
Study, plan, project, construct
and explore electricity production,
transmission, transformation,
distribution and sale systems,
and provide related services that
have been or may be conceded;
provide services of any kind
to concessionaires, permits or
authorizations of electricity services
and their customers and participate
as shareholder in other energy sector
companies.
Business
Investments.
Board of directors
Mário F. de Melo Santos
Antonio B. Pires e Albuquerque
Ramiro Alfonsín Balza
(Chief Regional Planning and Control
Officer, Enersis)
Cristóbal Sánchez Romero
Marcelo Llévenes Rebolledo
Rafael López Rueda
Nelson Ribas Visconti
Luiz Felipe Lampreia
José Alves de Mello Franco
Principal executives
Marcelo Llévenes Rebolledo
Luiz Carlos Bettencourt
José Alves de Mello Franco
Subscribe and paid capital (ThCh$)
1.000
Corporate Purpose
Engineering services supply,
including the projection, planning
and implementation of engineering
studies and projects, advice
and consultancy, assistance and
technical supply and management
information, inspection and
development of projects and works.
Business
Engineering services.
Representatives
Rodrigo Alcaíno Mardones
Alejandro Santolaya de Pablo
Deputy representatives
Julio Montero Montegú
Elías Arce Cyr
Cristián Araneda Valdivieso
(There is currently a vacancy)
Enersis stake
(direct and indirect)
29.99%- Unchanged.
ARA INGENDESA SENER
Name
Consorcio Ara - Ingendesa -
Sener Ltda.
Type of company
Limited partnership
Subscribed and paid capital (ThCh$)
33,662,736
Tax No.
76.738.990-6
Business
Engineering services.
Representatives
Rodrigo Alcaíno Mardones
Alejandro Santolaya de Pablo
Ernesto Ferrandiz Doménech
Deputy representatives
Cristián Araneda Valdivieso
Elías Arce Cyr
Julio Montero Montegú
Joaquín Botella Malagón
Angel Ares Montes
(There is currently a vacancy)
Enersis stake
(direct and indirect)
19.99% - Unchanged.
ATACAMA FINANCE
Name
Atacama Finance Co.
Type of company
Exempt company
Address
Caledonian House P.O. Box 265
G, George Town, Grand Cayman,
Cayman Islands
Telephone
(562) 630 9000
Subscribed and paid capital (ThCh$)
3,194,730
Corporate Purpose
Money borrowing in the financial
market through loans or bonds or
other instruments issuance, and
cash loans to other companies,
particularly those related to the
Atacama project.
Enersis stake
(direct and indirect)
70.22% - (+0.34% variation)
Address
Santa Rosa 76, piso 10,
Santiago, Chile
Business
Financial services.
Proportion of Enersis’s assets
0.17%
Telephone
(562) 630 9000
ARA - INGENDESA
Name
Consorcio Ara - Ingendesa Ltda.
Type of company
Limited partnership
Tax No.
77.625.850-4
Subscribed and paid capital (ThCh$)
1,000
Corporate Purpose
Engineering services supply,
including the projection, planning
and implementation of engineering
studies and projects, advice
and consultancy, assistance and
technical supply and management
Board of directors
Daniel Bortnik
Ricardo Rodríguez
Horacio Reyser
(There is currently a vacancy in the
Board)
Enersis stake
(direct and indirect)
29.99% - unchanged
Name
Aysén Transmisión S.A.
Type of company
Private company
Tax No.
76.041.891-9
Address
Miraflores 383, Of. 1302,
Santiago, Chile
Telephone
(562) 713 5000
Paid capital (ThCh$)
37,187,499
Corporate Purpose
Develop, and alternatively or
additionally manage, the electricity
transmission systems required by the
hydroelectric generation project that
Hidroaysén is planning to build in the
11th Region of Aysén, Chile.
Business
Electricity transmission
(project).
Board of directors
Antonio Albarrán Ruiz-Clavijo
Joaquín Galindo Vélez
Juan Benabarre Benaiges
Bernardo Larraín Matte
Luis Felipe Gazitúa Achondo
Rodrigo Alcaíno Mardones
Deputy directors
Carlos Martín Vergara
Sebastián Fernández Cox
Claudio Iglesis Guillard
Eduardo Morel Montes
Juan Eduardo Vásquez
Cristián Morales Jaureguiberry
Principal executives
Tulio Carillo Tomic
Enersis stake
(direct and indirect)
30.59% (unchanged).
CACHOEIRA DOURADA
Name
Centrais Elétricas Cachoeira
Dourada S.A.- CDSA
Type of company
Private company
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Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
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Address
Rodovia GO 206, Km 0, Cachoeira
Dourada Goiania, Goiás, Brazil
Subscribed and paid capital (ThCh$)
2,572,038
Telephone
(55 62) 3434 9000
Subscribed and paid capital (ThCh$)
81,071,089
Corporate Purpose
Studies, projections, construction,
installation, operation and
exploration of electricity generating
plants, plus the related commercial
activity. Promote or participate in
other companies constituted to
produce electricity, in or outside the
state of Goiás, by the subscription of
any number of shares or quotas.
Business
Electricity generation.
Board of directors
Guilherme Gomes Lencastre
José Renato Ferreira
Marcelo Llévenes Rebolledo
Principal executives
Guilherme Gomes Lencastre
Manuel Herrera Vargas
José Ignacio Pires Medeiros
Carlos Ewandro Moreira
Eugenio Cabanes Durán
Luiz Carlos Bettencourt
José Alves de Mello Franco
Ana Claudia Gonçalves Rebello
Aurélio Ricardo de Oliveira
Nelson Ribas Visconti
Enersis stake
(direct and indirect)
54.09% - (+0.73% variation)
Corporate Purpose
Provide for its own or third party’s
account and/or associated with
other parties, in Chile or abroad,
services in general, real estate and
construction of real estate, import,
export and products distribution of
any kind.
Business
General services.
Representatives
Cristóbal Sánchez Romero
Klaus Winkler Speringer
Deputy representatives
Gonzalo Mardones Pantoja
Eduardo López Miller
Principal executives
Klaus Winkler Speringer
Gonzalo Mardones Pantoja
Alfredo Herrera Carrasco
Tomás Casanegra Rivera
Ricardo Camezzana Leo
Carlos A. Zarruk Gómez
Pablo Calderón Pacheco
Alejandro Cabrera Croqueville
Commercial relations
Civil works management
services and supply of financial
administration, management,
corporate and general services.
Trading current account.
Enersis stake
(direct and indirect)
100% - Unchanged.
Proportion of Enersis’s assets
0.00%
Corporate Purpose
Orofessional and technical services
supply to national and international,
public and private companies
and organisms, advice, technical
assistance, assembly, process
control, start-up and maintenance
of systems, machinery and
apparatus, maintenance of transport
and distribution networks, all
related to the production, transport
and distribution of electricity.
Business
General services.
Principal executive
Pablo Calderón Pacheco
Enersis stake
(direct and indirect)
100% - Unchanged.
CAM BRASIL
Name
Cam Brasil Multiserviços Ltda.
Type of company
Limited partnership
Address
Avda. José Mendonça de Campos,
680 São Gonçalo – RJ, Brazil
Telephone
(55 21) 2702 8000
Address
Avda. Carrera 68 N° 5-21,
Bogotá, Colombia
Telephone
(57 1) 417 3000
Subscribed and paid capital (ThCh$)
398,546
Corporate Purpose
Provide for its own or third party’s
account and/or associated with
other parties, in Colombia or abroad,
the following activities: a) Services:
professional and technical services
supply to national and international,
public and private companies and
organisms; b) Construction and real
estate, through the construction and
renovation of all kind of properties
and projects implementation; c)
Import and export of all kind of
materials; d) Trading, through the
purchase, sale, barter, fractioning,
consignment and distribution of
all kind of materials; e) Industrial,
through the production, assembly or
manufacture in any of their stages
of all kind of materials or machinery;
f) Design, creation, exploitation and
sale of services and information
and communication technology
(hardware and/or software); g)
Investments through participation in
other companies.
Subscribed and paid capital (ThCh$)
3,927,319
Corporate Purpose
Electricity engineering services
supply, construction of networks
and large works, retail services in
utilities.
Business
General services.
Principal executives
Carlos Alberto Zarruk Gómez
Enersis stake
(direct and indirect)
100% - Unchanged.
CAM
CAM ARGENTINA
Name
Compañía Americana de
Multiservicios Ltda.
Name
Compañía Americana de
Multiservicios (CAM) S.R.L.
Type of company
Limited partnership
Type of company
Limited partnership
Tax No.
96.543.670-7
Address
Tarapacá 934, Santiago, Chile
Telephone
(56 2) 389 7300
Address
Avda. Vélez Sarsfield 1160,
Capital Federal, Argentina
Telephone
(54 11) 4302 2951/58
Subscribed and paid capital (ThCh$)
151,793
Business
General services.
Principal executive
Tomás Casanegra Rivera
Enersis stake
(direct and indirect)
100% - Unchanged.
CAM COLOMBIA
Name
Compañía Americana de
Multiservicios Ltda. Colombia
Type of company
Limited partnership
CAM PERÚ
Name
Compañía Americana de
Multiservicios del Perú S.R.L.
Type of company
Limited partnership
Address
Jr. Teniente César López Rojas 201,
piso 3, Maranga, San Miguel, Lima,
Peru
Telephone
(51 1) 561 1604
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144
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
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116
125
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energy, identify and develop clean
development mechanism (CDM)
projects and act as depository
and trader in emission reduction
certificates originated from
these projects. The generation,
transport, distribution, supply and
sale of electricity, for which it may
acquire and exploit the respective
concessions and grants.
loading and unloading of inputs
and other products in the Punta de
Patache area, located to the south
of Iquique in Chile’s 1st Region. It
also includes the construction of the
transmission line with its substations
between the plant and the Doña
Inés de Collahuasi copper mine
and reinforcement of the Northern
Electricity Grid.
Business
Wind energy generation.
Business
Energy generation.
Fernando Antognazza
Deputy directors
Roberto José Fagan
Arturo Pappalardo
Pedro Cruz Viné
Principal executive
Juan Carlos Blanco
Enersis stake
(direct and indirect)
26.99% - Unchanged.
Subscribed and paid capital (ThCh$)
829,256
Corporate Purpose
Carry out for its own or third party’s
account professional and technical
services in the management and
purchase of materials or equipment
for services including those related
to electricity, water, gas and
communications; the administration
of warehouses and materials,
control and performing of works,
metering and calibration, advice,
technical assistance, assembly,
process control, start up and
maintenance of systems, machinery
and apparatus, maintenance of
transport and distribution networks;
all related to the production,
transport and distribution of water,
gas, telecommunications and energy
in any of its forms. Construction
and real estate: construction and
renovation of all kind of properties
and the carrying out of all kind of
property management and project
execution, direction and carrying out
of engineering and/or architectural
works in general.
Business
General services.
Principal executive
Ramón Gonzalo Cubillos Garay
Enersis stake
(direct and indirect)
100% - Unchanged.
CANELA
Board of directors
Juan Benabarre Benaiges
Claudio Iglesis Guillard
Rodrigo Alcaíno Mardones
Sebastián Fernández Cox
Cristóbal García-Huidobro Ramírez
Deputy directors
Aníbal Bascuñan Bascuñan
Alan Fisher Hill
Julio Montero Montegú
Claudio Betti Pruzo
Juan Cristóbal Pavéz Recart
Principal executive
Wilfredo Jara Tirapegui
Enersis stake
(direct and indirect)
44.99% - Unchanged.
CELTA
Name
Compañía Eléctrica Tarapacá S.A.
Type of company
Private company
Name
Central Eólica Canela S.A.
Tax No.
96.770.940-9
Type of company
Private company
Tax No.
76.003.204-3
Address
Santa Rosa 76, piso 12,
Santiago, Chile
Telephone
(562) 630 9000
Subscribed and paid capital (ThCh$)
12,284,743
Corporate Purpose
Promote and develop renewable
energy projects, mainly wind
Address
Santa Rosa 76, Santiago, Chile
Telephone
(562) 630 9000
Subscribed and paid capital (ThCh$)
103,099,643
Corporate Purpose
Mainly the production, transport,
distribution and supply of electricity,
in Chile and internationally, for
which it may obtain, acquire and
exploit the respective concessions
and grants. Its priority purpose
until its conclusion is to construct
a thermal generating plant and
moorings or port facilities for the
Board of directors
Alejandro García Chacón
Alan Fischer Hill
Liones Roa Burgos
Principal executive
Eduardo Soto Trincado
Enersis stake
(direct and indirect)
59.98%- Unchanged.
CEMSA
Name
Endesa Cemsa S.A.
Type of company
Corporation
CENTRALES HIDROELÉCTRICAS
DE AYSÉN S.A.
Name
Centrales Hidroeléctricas
de Aysén S.A.
Type of company
Private company
Tax No.
76.652.400-1
Address
Miraflores 383, Of. 1302,
Santiago, Chile
Telephone
(562) 713 5000
Address
Pasaje Ing. E. Butty 220, piso 16,
Buenos Aires, Argentina.
Telephone
(5411) 4875 0600
Subscribed and paid capital (ThCh$)
1,869,732
Corporate Purpose
For its own and/or for the account
and on behalf of third parties and/
or associated with other parties,
the wholesale purchase and sale
of electricity power and energy
produced and/or consumed by
third parties, including but not
limited to the import and export of
electricity power and energy and
the commercialization of royalties,
and the supply and/or performing
of services related to the above
activity, all in accordance with
prevailing regulations.
Subscribed and paid capital (ThCh$)
72,916,665
Corporate Purpose
The development, financing,
ownership and exploitation of a
hydroelectric project, the “Aysén
Project”, in the 11th Region of Aysén,
which contemplates an estimated
capacity of 2,355 MW distributed
between five hydroelectric plants.
The following activities form part
of its purposes: a) the production
and transport of electricity; b) the
supply and sale of electricity to its
shareholders; c) the administration,
operation and maintenance of
hydraulic works, electrical systems
and hydroelectric generating plants;
d) services supply related to its
purposes. The above activities may
be carried out for its own or third
party’s account. The company may
obtain, acquire and exploit the
required concessions and permits for
this purpose.
Business
Energy trading.
Business
Energy generation (project).
Board of directors
José María Hidalgo Martín-Mateos
José Venegas Maluenda
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ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARy AND ASSOCIATE COMPANIES
145
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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Board of directors
Antonio Albarrán Ruiz-Clavijo
Joaquín Galindo Vásquez
Juan Benabarre Benaiges
Rodrigo Alcaíno Mardones
Bernardo Larraín Matte
Luis Felipe Gazitúa Achondo
Deputy directors
Carlos Martín Vergara
Claudio Iglesis Guillard
Eduardo Morel Montes
Juan Eduardo Vásquez
Sebastián Fernández Cox
Cristián Morales Jaureguiberry
Principal executive
Hernán Salazar Zencovich
Enersis stake
(direct and indirect)
30.59% - Unchanged
.
CHILECTRA
Name
Chilectra S.A.
Type of company
Publicly-held company
Tax No.
96.800.570-7
Address
Santa Rosa 76, piso 8,
Santiago, Chile
Telephone
(56 2) 675 2000
Principal ejecutives
Cristián Fierro Montes
Gonzalo Vial Vial
Cristóbal Sánchez Romero
Guillermo Pérez del Río
Andreas Gebhardt Strobel
Enrique Fernández Pérez
Ramón Castañeda Ponce
Christián Mosqueira Vargas
Jean Paul Zalaquet Falaha
Gonzalo Labbé Reyes
Commercial relations
Structured loans; rentals of
transmission and substation lines;
risk-prevention services supply; legal
and professional advice in business
administration and engineering,
financial management in general,
corporate and others.
Enersis stake
(direct and indirect)
99.09% - Unchanged.
Proportion Enersis’s assets
12.67%
CHILECTRA INVERSUD
Name
Chilectra Inversud S.A.
Tax No.
99.573.910-0
Type of company
Private company
Subscribed and paid capital (ThCh$)
368,494,984
Address
Santa Rosa 76, piso 8, Santiago,
Chile
Corporate Purpose
Exploit in Chile or abroad the
distribution and sale of hydraulic,
thermal, heat or any kind of
electricity, and the distribution,
transport and sale of fuels of any
kind, supplying this energy or fuel to
most consumers directly or through
other companies.
Business
Energy distribution.
Board of directors
Massimo Tambosco
Macarena Lama Carmona
Pedro Buttazzoni Álvarez
Álvaro Pérez de Lema de la Matta
Marcelo Llévenes Rebolledo
(There is currently a vacancy in the
Board)
Telephone
(56 2) 675 2000
Subscribed and paid capital (ThCh$)
390,008,060
Corporate Purpose
Exploit abroad, for its own or
through third parties, the distribution
and sale of electricity. It may make
investments in foreign companies
and make all kind of investments
in all kind of financial instruments
like bonds, debentures, debt titles,
credits, negotiable securities or other
financial or commercial documents,
all with to the objective of obtaining
their natural and civil returns. It may
constitute, amend, dissolve and
liquidate foreign companies and
develop all other activities that are
complementary and/or related to the
above business.
Business
Investments.
Board of directors
Cristóbal Sánchez Romero
Ramón Castañeda Ponce
Francisco Miqueles Ruz
Address
Avda. España 3301,
Buenos Aires, Argentina
Paid capital (ThCh$)
47,114,465
Corporate Purpose
Production of electricity and its block
commercialization.
Principal executives
Francisco Miqueles Ruz
Business
Energy generation.
Enersis stake
(direct and indirect)
99.09% - Unchanged.
CHINANGO S.A.C.
Name
Chinango S.A.C.
Type of company
Corporation
Address
Avda. Víctor Andrés Belaúnde
147, edificio real 4, piso 7, Centro
Empresarial Camino Real, San Isidro,
Lima, Peru
Paid capital (ThCh$)
45,086,557
Corporate Purpose
The main purpose of the society is
the power generation, marketing and
transmission, being able to perform
all acts and hold all contracts that
the Peruvian law allows for such
purposes.
Business
Generation, commercialization and
transmission of energy.
Representative
Julio Cabello Young
Enersis stake
(direct and indirect)
29,97% (New company)
Board of directors
José Miguel Granged Bruñen
Carlos Martín Vergara
Miguel Ortiz Fuentes
Julio Valbuena Sánchez
Alex Daniel Horacio Valdez
Orlando Díaz
(There are currently two vacancies in
the Board)
Deputy directors
Fernando Antognazza
Francisco Domingo Monteleone
José María Hidalgo Martín-Mateos
Juan Carlos Blanco
Héctor Osvaldo Mendiberri
Juan Carlos Nayar
Gustavo Brockerhof
(There are currently two vacancies in
the Board)
Principal executive
Fernando Claudio Antognazza
Enersis stake
(direct and indirect)
39.21% - Unchanged.
CIEN
Name
Compañía de Interconexión
Energética S.A.
Type of company
Corporation
Address
Praça Leoni Ramos, N° 1, piso 6,
Bloco 2, São Domingos, Niterói, Río
de Janeiro, Brazil
CHOCÓN
Telephone
(55 21) 3607 9500
Name
Hidroeléctrica El Chocón S.A.
Paid capital (ThCh$)
79,948,998
Type of company
Corporation
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Subscribed and paid capital (ThCh$)
3,934,010
Telephone
(55 85) 3453-4082
Address
Jr. Teniente César López Rojas 201,
Maranga, San Miguel, Lima, Peru
Subscribed and paid capital (ThCh$)
267,899,274
Telephone
(511) 561 1604
Corporate Purpose
The distribution of electricity and
related services in the state of Ceará.
Subscribed and paid capital (ThCh$)
11,443,726
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
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Corporate Purpose
The company has as purpose
the production, industrialization,
distribution and commercialization of
electric power, including the import
and export activities. In view of
achieving the purposes mentioned
above, the company will promote
the study, planning and construction
of facilities for production systems,
transmission, conversion and
distribution of electricity by capturing
the necessary investment to the
development of the activities and by
providing services.
Beyond the purposes referred to,
the company will promote the
implementation of associated
products, as well as inherent,
ancillary or complementary activities
to services and jobs that cometh to
provide. To carry out the activities
necessary to achieve its goals, the
company may participate in other
societies.
Business
Energy transmission.
Board of directors
Marcelo Andrés Llévenes Rebolledo
José Augustín Venegas Maluenda
Guillermo Gomes Lencastre
Principal executives
Guilherme Gomes Lencastre
Aurelio Ricardo Bustillo de Oliveira
Luiz Carlos Ortins de Bettencourt
José Ignácio Pires Medeiros
Manuel Rigoberto Herrera Vargas
Carlos Ewandro Naegale Moreira
Ana Claudia Gonçalves Rebello
José Alves de Mello Franco
Eugenio Cabanes Durán
Marcelo Smicht
Enersis stake
(direct and indirect)
54.30% (+0.73% variation)
CODENSA
Name
Codensa S.A. E.S.P.
Type of company
Corporation
Address
Carrera 13 A 93-66, Bogotá,
Colombia
Telephone
(57 1) 601 6060
Corporate Purpose
Distribution and sale of electricity
and the performing of all linked,
complementary and related activities
to the distribution and sale of
electricity, carrying out of works,
designs and consultancy in electrical
engineering and the sale of products
to the benefit of its customers.
Business
Energy distribution.
Board of directors
José Antonio Vargas Lleras
Andrés Regué Godall
Orlando Cabrales Martínez
Lucio Rubio Díaz
Mónica De Greiff Lindo
Juan Carlos Ortega Lopez
Carlos Bello Vargas
Deputy directors
Luis Felipe Larumbe
Roberto Ospina Pulido
Antonio Sedán Murra
Cristián Herrera Fernández
Henry Navarro Sánchez
Héctor Zambrano Rodríguez
Consuelo Beltrán Yazmit
Secretario del Directorio
Andrés Caldas Rico
Principal executives
Cristián Herrera Fernández
Andrés Caldas Rico
Jaime A. Vargas Barrera
María Celina Restrepo
Margarita Olano Olano
Luis Larumbe Aragón
Roberto Ospina Pulido
Omar Serrano Rueda
Rafael Carbonell Blanco
Alba Urrea Gómez
Enersis stake
(direct and indirect)
21.73% ( unchanged).
Proportion of Enersis’s assets
2.32%
COELCE
Name
Companhia Energética do Ceará
Type of company
Foreign publicly-held company
Business
Energy distribution.
Board of directors
Mario Fdo. de Melo Santos
Marcelo Llévenes Rebolledo
Cristóbal Sánchez Romero
Gonzalo Vial Vial
José Alves de Mello Franco
Aurélio Bustilho de Oliveira
Jorge Parente Frota Júnior
Fernando de Moura Avelino
Cristián Fierro Montes
Roberto de Pádua Macieira
Francisco Honório Pinheiro Alvez
Alternative Directors
Antonio Basilio Pires e Albuquerque
Luciano A. Galasso Samaria
Nelson Ribas Visconti
Teobaldo José Cavalcanti Leal
José Alencar Araripe Júnior
Vladia Viana Regis
José Renato Ferreira Barreto
José Nunes de Almeida Neto
Juarez Ferreira de Paula
José Távora Batista
Luiz Carlos Bettencourt
Principal executives
Abel Alves Rochinha
José Nunes de Almeida Neto
Olga Jovanna Carranza Salazar
José Távora Batista
Aurélio Bustilho de Oliveira
José Renato Ferreira Barreto
Luiz Carlos Bettencourt
José Alves de Mello Franco
Silvia Cunha Saraiva Pereira
Enersis stake
(direct and indirect)
35.25% (+0.35% variation).
COMPAÑÍA PERUANA
DE ELECTRICIDAD
Name
Compañía Peruana de
Electricidad S.A.C.
Address
Rua Padre Valdevino, 150 - Centro,
Fortaleza, Ceará, Brazil
Type of company
Private company
Corporate Purpose
Make investments in general,
especially those related to the
distribution and generation of
electricity.
Business
Energy distribution.
Principal executive
Ignacio Blanco Fernández
Enersis stake
(direct and indirect)
50.54% - Unchanged.
Proportion of Enersis’s assets
0.00%
CONSTRUCCIONES Y PROYECTOS
LOS MAITENES
Name
Construcciones y Proyectos
Los Maitenes S.A.
Type of company
Private company
Tax No.
96.764.840-K
Address
Américo Vespucio 100,
Pudahuel, Santiago, Chile
Telephone
(56 2) 601 0601
Subscribed and paid capital (ThCh$)
4,712,875
Corporate Purpose
a) The construction for its own or
third parties’ account, on its own
or other land, urbanized or not, of
all kind of civil works, installations,
buildings, housing, offices and
others; b) the sale or disposal in
any form of such building works;
c) the study and development of
projects for such buildings, including
engineering, architecture, financing,
commercialization, etc. For this, it
may act for its own or third party’s
account, either directly or forming
enersis 09
ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARy AND ASSOCIATE COMPANIES
147
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
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part of associations, communities,
companies and legal entities of any
kind, in which it may also assume the
management.
Business
Real estate.
Board of directors
Cristóbal Sánchez Romero
Victor Jarpa Riveros
Andrés Salas Estrades
Luis Felipe Edwards Mery
José Manuel Guzmán Nieto
Principal executive
Bernardo Küpfer Matte
Enersis stake
(direct and indirect)
55.00% - Unchanged.
COSTANERA
Name
Endesa Costanera S.A.
Type of company
Corporation
Address
Avda. España 3301,
Buenos Aires, Argentina
Telephone
(5411) 4307 3040
Paid capital (ThCh$)
27,031,045
Corporate Purpose
The production of electricity and its
block sale.
Business
Energy generation.
Board of directors
José María Hidalgo Martín- Mateos
Máximo Bomchil
Julio Valbuena Sánchez
César F. Amuchástegui
Eduardo J. Romero
Simón Dasensich
Carlos Martín Vergara
Fernando C. Antognazza
Alternative Directors
Roberto Fagan
Damián Camacho
Francisco Monteleone
Miguel Ortiz Fuentes
Bernardo Iriberi
Alfredo Mauricio Vítolo
(There are currently two vacancies in
the Board)
Principal executives
José Miguel Granged Bruñen
Fernando Carlos Luis Boggini
Rodolfo Silvio Bettinsoli
Jorge Burlando
Sergio Schmois
Francisco Monteleone
Enersis stake
(direct and indirect)
54.30% (+0.74% variation).
Address
San José 140 (C1076AAD)
Buenos Aires, Argentina
DISTRIBUIDORA ELÉCTRICA DE
CUNDINAMARCA
Telephone
(54 11) 4370 3700
Enersis stake
(direct and indirect)
41.85% - Unchanged.
Name
Distribuidora Eléctrica de
Cundinamarca S.A. E.S.P.
CTM
Name
Compañía de Transmisión del
Mercosur S.A.
Type of company
Corporation
Address
Bartolomé Mitre 797, piso 13,
Buenos Aires, Argentina
Subscribed and paid capital (ThCh$)
2,236,873
Corporate Purpose
Provide high-tension electricity
transmission services both in
relation to national and international
electricity systems, in accordance
with current legislation, for which
it may participate in national or
international tenders, become a
public-utility electricity concession-
holder in local or international
high tension transport systems and
carry out all activities necessary
for meeting its purposes, including
expressly but not limited to
becoming party to contracts for
the construction, operation and
maintenance for the start and/or
expansion of electricity transmission
lines, participate in the financing of
projects related directly or indirectly
with those enterprises as lender and/
or borrower and/or guarantor in
favor of third parties.
Business
Energy transmission.
Board of directors
José María Hidalgo Martín-Mateos
Guilherme Lencastre
Arturo Miguel Pappalardo
Deputy directors
Juan Carlos Blanco
Roberto José Fagan
José Venegas Maluenda
Principal executive
Arturo Miguel Pappalardo
Type of society
Private company
Tax No.
900.265.917-0
Address
Carrera 9 N° 73-44 Piso 5
Subscribed and paid capital (ThCh$)
48.457.902
Corporate Purpose
The company’s main purpose is the
distribution and commercialization
of energy, and the execution of
all linked, complementary and
related activities to distribution
and commercialization of energy,
public works, designs and electrical
engineering consulting, and the
commercialization of products for
the benefit of its customers.
Business
Distribution and commercialization
of electric energy
Board of directors
Jorege Armando Pinzon Barragan
Cristian Herrera Fernández
Mario Acevedo Trujillo
Deputy directors
Ernesto Moreno Restrepo
Roberto Ospina Pulido
Jaime Herrera Rodriguez
Principal executives
Henry Navarro Sánchez
Mario Trujillo Hernández
Enersis stake
(direct and indirect)
10.65% (New company)
DISTRILEC INVERSORA
Name
Distrilec Inversora S.A.
Type of company
Foreign private company
Subscribed and paid capital (ThCh$)
67,457,527
Corporate Purpose
Exclusively to invest in companies
constituted or to be constituted
whose main activity is the
distribution of electricity or that
directly or indirectly participate
in companies with that principal
business through all kind of financial
and investment activities, except
those in the laws of financial entities,
the purchase and sale of public and
private debt paper, bonds, shares,
negotiable instruments and the
granting of loans, and the placement
of its funds in bank deposits of any
kind.
Business
Investments.
Board of directors
Claudio Fontes Nunes
Rafael López Rueda
Ramiro Alfonsín Balza
(Chief Regional Planning and Control
Officer, Enersis)
Daniel Casal
Santiago Daireaux
Fermín Demonte
María Inés Justo
Gabriel Marchione
Rigoberto Mejía Aravena
Gonzalo Vial Vial
(There is currently a vacancy in the
Board)
Alternative Directors
Pedro Eugenio Aramburu
Manuel María Benites
Mónica Diskin
Roberto José Fagan
Martín Mandarano
Jean Yatim Morillas
Enrique Rosello
Jorge Vugdelija
(There are currently two vacancies in
the Board)
Principal executive
José María Hidalgo Martín-Mateos
Enersis stake
(direct and indirect)
50.93% - Unchanged.
Proportion of Enersis’s assets
2.31%
enersis 09
ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARy AND ASSOCIATE COMPANIES
148
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
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161
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EDEGEL
Name
Edegel S.A.A.
Address
Jr. Teniente Cesar López Rojas 201
Urb. Maranga, San Miguel, Lima,
Peru
Type of company
Publicly-held company
Telephone
(51 1) 561 2001
Address
Avda. Víctor Andrés Belaúnde
147, edificio real 4, piso 7, Centro
Empresarial Camino Real, San Isidro,
Lima, Peru
Subscribed and paid capital (ThCh$)
88,232,785
Corporate Purpose
Electricity distribution, transmission
and generation services supply.
Paid capital (ThCh$)
374,326,011
Corporate Purpose
Mainly, and in general, electricity
generation activities, also the civil,
industrial, commercial and any other
act or operation relating or leading
to the principal purposes.
Business
Energy generation.
Board of directors
Juan Benabarre Benaiges
Giora Almogy
Reynaldo Llosa Barber
Francisco García Calderón
Ignacio Blanco Fernández
Alberto Triulzi Mora
(There is currently a vacancy in the
Board)
Alternative Directors
Julián Cabello Yong
Arrate Gorostidi Aguirresarobe
Roberto Cornejo Spickernagel
Teobaldo José Cavalcante Leal
Milagros Noriega Cerna
Rosa M. Flores-Aráoz Cedrón
(There is currently a vacancy in the
Board)
Principal executives
Carlos Luna Cabrera
Christian Schroder Romero
Milagros Noriega Cerna
Julián Cabello Yong
Rosa M. Flores-Aráoz Cedrón
Enersis stake
(direct and indirect)
37.46% (+17.63% variation)
EDELNOR
Name
Empresa de Distribución
Eléctrica de Lima Norte S.A.A.
Type of company
Foreign publicly-held company
Business
Energy distribution
Board of directors
Reynaldo Llosa Baber
Ignacio Blanco Fernández
Ramiro Alfonsín Balza
(Chief Regional Planning and Control
Officer, Enersis)
Juris Agüero Carocca
Rafael López Rueda
Alfredo Ferrero Diez Canseco
Fernando Fort Marie
Gonzalo Carbó De Haya
Principal executives
Ignacio Blanco Fernández
Carlos Solís Pino
Walter Sciutto Brattoli
Rocío Pachas Soto
Teobaldo Leal Cavalcante
Luis Salem Hone
Pamela Gutiérrez Damiani
Alfonso Valle Cisneros
Enersis stake
(direct and indirect)
57.54% (+24% variation)
Propotion of Enersis’ assets
2.85%
EDESUR
Name
Empresa Distribuidora Sur S.A.
Type of company
Foreign corporation
Address
San José 140 (1076),
Capital Federal, Argentina
Telephone
(54 11) 4370 3700
Corporate Purpose
Distribution and commercialization
of electricity and related operations.
Telephone
(562) 321 7737
Business
Energy distribution.
Board of directors
Rafael López Rueda
Claudio Fontes Nunes
Ramiro Alfonsín Balza
(Chief Regional Planning and Control
Officer, Enersis)
Rafael Arias Salgado
Miguel Beruto
Juan Pablo Larraín Medina
(Enersis’ Communication Manager)
Rigoberto Mejía Aravena
Marcelo Silva Iribarne
Gonzalo Vial Vial
Alternative Directors
Santiago Daireaux
Manuel Benites
Roberto Fagan
Daniel Casal
Pablo Martín Lepiane
Alan Arntsen
Pedro Eugenio Aramburu
María Inés Justo
(There is currently a vacancy in the
Board)
Principal executives
José María Hidalgo Martín-Mateos
Silvia Migone Díaz
Héctor Ruiz Moreno
Sandro Rollan
Osvaldo Rolando
Daniel Alasia
Juan Garade
Juan Verbitsky
José María Gottig
Daniel Martini
Jorge Lukaszczuk
Enersis stake
(direct and indirect)
65.39% - Unchanged
Proportion of Enersis’s assets
2.95%
ELECTROGAS
Name
Electrogas S.A.
Type of company
Private company
Tax No.
96.806.130-5
Corporate Purpose
Transport services supply for natural
gas and other fuels, for its own or
third party’s account, for which it
may construct, operate and maintain
gas, oil and multi-use pipelines and
complementary installations.
Business
Gas transportation.
Subscribed and paid capital (ThCh$)
10,784,067
Board of directors
Claudio Iglesis Guillard
Juan Eduardo Vásquez Moya
Pedro Gatica Kerr
Enrique Donoso Moscoso
Rosa Herrera Martínez
Deputy directors
Jorge Bernardo Larraín Matte
Ricardo Santibáñez Zamora
Juan Pablo Salinas Barrera
Cristián Morales Jaureguiberry
Juan Oliva Vásquez
Principal executive
Carlos Andreani Luco
Enersis stake
(direct and indirect)
25.49% - Unchanged.
EMGESA
Name
Emgesa S.A. E.S.P.
Type of company
Public utility
Address
Carrera 11 82-76, piso 4, Santa
Fe de Bogotá, D.C. Colombia
Paid capital (ThCh$)
259,460,190
Corporate Purpose
The generation and sale of electricity
and the performing of all similar,
connected, complementary and
related activities.
Business
Energy generation.
Board of directors
José A. Vargas LLeras
Mónica De Greiff
Lucio Rubio Díaz
Subscribed and paid capital (ThCh$)
135,477,598
Address
Evaristo Lillo 78, piso 4, Of. 41,
Santiago, Chile
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ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARy AND ASSOCIATE COMPANIES
149
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
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Luisa Fernanda Lafourie
Sebastián Fernández Cox
Juan Ricardo Ortega
José Iván Velásquez
Deputy directors
Fernando Gutiérrez Medina
Gustavo Gómez Cerón
Henry Navarro Sánchez
Manuel Jiménez Castillo
José Venegas Maluenda
María Camila Uribe
Andrés López Valderrama
Principal executives
Lucio Rubio Díaz
Andrés Caldas Rico
Luis Fermín Larumbe
Roberto Ospina Pulido
Rafael Carbonell Blanco
Omar Serrano
Gustavo Gómez Cerón
Fernando Gutiérrez Medina
María Celina Restrepo
Enersis stake
(direct and indirect)
16.12%- Unchanged
EMPRESA DE ENERGÍA DE
CUNDINAMARCA
Name
Empresa de Energía de
Cundinamarca S.A.
Type of Society
Private company
Tax N°
860.007.638-0
Board of directors
Mario Trujillo Hernández
Jorge Armando Pinzón Barragan
Ernesto Moreno Restrepo
Andrés Gonzáles Días
Paulo Jairo Orozco Días
David Felipe Acosta Correa
Manuel Enrique Agamez Hernández
Deputy directors
Fabiola Leal Castro
Juan Manuel Bernal Crespo
Heliodoro Mayorga Moncada
Carlos Hernán Valdivieso Laverde
Davis Feferbaum Gutfraind
Javier Blanco Fernández
Ricardo Lozano Forero
Principal executives
David Felipe Acosta Correa
Carlos Mario Restrepo Molina
Javier Blanco Fernández
Fernando Alonso Rivera Martínez
Alberto Duque Ramirez
Olga Cecilia Perez Rodriguez
Enersis stake
(direct and indirect)
8,77% (New company)
EMPRESA ELÉCTRICA
DE COLINA
Name
Empresa Eléctrica de Colina Ltda.
Type of company
Limited partnership
Tax No.
96.783.910-8
ENDESA ARGENTINA
Name
Endesa Argentina S.A.
Type of company
Corporation
Address
Suipacha 268, piso 12,
Buenos Aires, Argentina
Telephone
(5411) 4307 3040
Corporate Purpose
Investments in companies for
the production, transport and
distribution of electricity and its sale,
and financial activities except for
those reserved by the law of banks.
Business
Investments.
Subscribed and paid capital (ThCh$)
81,188,759
Board of directors
José Miguel Granged Bruñen
Néstor José Belgrano
Francisco Martín Gutiérrez
Deputy directors
María Inés Corrá
Marcelo A. Den Toom
Hugo Pedro Lafalce
Enersis stake
(direct and indirect)
59.98% - Unchanged.
Address
Carrera 11 N° 93-52 Bogotá,
Colombia.
Address
Chacabuco 31, Colina,
Santiago, Chile
EN- BRASIL COMÉRCIO E
SERVIÇOS S.A.
Name
En- Brasil Comércio e Serviços S.A.
Telephone
(571) 7051800
Telephone
(56 2) 844 4280
Type of Society
Private company
Subscribed and paid capital (ThCh$)
9,304,652
Subscribed and paid capital (ThCh$)
82,222
Corporate Purpose
The company’s purpose is the
generation, transmission, distribution
and commercialization of electricity
and the implementation of all linked,
complementary and related activities
to distribution and commercialization
of energy, public works, design and
electrical engineering consulting,
and products and services
commercialization that benefit its
customers.
Corporate Purpose
Distribution and sale of electricity
and home, sports, entertainment and
computer electrical appliances.
Business
Energy distribution.
Principal executive
Leonel Martínez Garrido
Enersis stake
(direct and indirect)
99.09% - Unchanged
Address
Praça Leoni Ramos nº 01 – parte, São
Domingos, Niterói, Rio de Janeiro,
Brazil.
Telephone
(55 21) 2613 7000
Paid capital (R$)
10.000
Corporate Purpose
or wholesale transactions of various
products, and to provide general
services for the electric sector and
others.
Business
Investments
Principal executives
Ricardo da Silva Correa
Leonardo de Paula Freitas Guimaraes
Enersis stake
(direct and indirect)
54.30% (New company)
ENDESA BRASIL
Name
Endesa Brasil S.A.
Type of company
Corporation
Adddress
Praça Leoni Ramos, 1 – 7
andar – bl. 02 - Parte, Niterói,
Río de Janeiro, Brazil
Telephone
(5521) 3607 9500
Subscribed and paid capital (ThCh$)
225,099,641
Corporate Purpose
a) Participation in the capital
of other companies that act or
become constituted to act directly
or indirectly in any segment of
the electricity sector, including
companies that provide services to
companies in that sector, in Brazil or
elsewhere, as partner or shareholder,
within the legally permitted limits
and, where necessary, subject
to obtaining the necessary
governmental approvals; b)
transmission, distribution, generation
or selling of electricity and related
activities; and c) participation,
individually or through joint ventures,
consortia or other similar forms of
association, in tenders, projects and
enterprises for the supply of services
and activities mentioned above.
Business
Investments.
The company aims to participate in
the capital of other companies in
Brazil or abroad, trade in general,
even imports and exports, by retail
Board of directors
Mario Fernando de Melo Santos
José María Calvo-Sotelo Martín
Ignacio Antoñanzas Alvear
(Chief Executive Officer of Enersis)
enersis 09
ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARy AND ASSOCIATE COMPANIES
150
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
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Antonio B. Carvalho e Albuquerque
Rafael López Rueda
Rafael Mateo Alcalá
Principal executives
Marcelo Llévenes Rebolledo
Luiz Carlos Bettencourt
Aurelio De Oliveira
Eugenio Cabanes
Antonio Pires e Albuquerque
Carlos Ewandro Naegele Moreira
José Alves de Mello Franco
Enrique de las Morenas
Carlos Martín Vergara
Eduardo Escaffi Johnson
Pietro Corsi Misle
Luis Larumbe Aragón
José Venegas Maluenda
Sebastián Fernández Cox
Juan Benabarre Benaiges
Claudio Iglesis Guillard
Commercial relations
Trading current accounts,
accounting, trading desk and
treasury services supply.
Enersis stake
(direct and indirect)
54.30% (+0.73% variation).
Enersis stake
(direct and indirect)
59.98% - Unchanged.
Proportion of Enersis’s assets
6.43%
Proportion of Enersis’s assets
57.11%
ENDESA CHILE
ENDESA ECO
Name
Empresa Nacional de
Electricidad S.A.
Type of company
Publicly-held company
Tax No.
91.081.000-6
Name
Endesa Eco S.A.
Type of company
Private company
Tax No.
76.313.310-9
Address
Santa Rosa 76, Santiago, Chile
Address
Santa Rosa 76, piso 12,
Santiago, Chile
Telephone
(56 2) 630 9000
Telephone
(56 2) 630 9000
Subscribed and paid capital (ThCh$)
1,537,722,642
Subscribed and paid capital (ThCh$)
681,845
Corporate Purpose
Generation and supply of electricity,
sale of consultancy and engineering
services in Chile and elsewhere and
the construction and exploitation of
infrastructure works.
Business
Energy generation
Board of directors
Jorge Rosenblut
Paolo Bondi
Luis de Guindos Jurado
José María Calvo-Sotelo
Francesco Buresti
Borja Prado Eulate
Jaime Estévez Valencia
Leonidas Vial Echeverría
Gerardo Jofré Miranda
Principal executives
Joaquín Galindo Vélez
Renato Fernández Baeza
Corporate Purpose
Promote and develop renewable
energy projects like mini
hydroelectric, wind, geothermal,
solar, biomass and others; identify
and develop clean development
mechanism (CDM) projects and act
as depositary and trader of emission
reduction certificates generated by
these projects.
Business
Energy generation.
Board of directors
Juan Benabarre Benaiges
Renato Fernández Baeza
(There is currently a vacancy in the
Board)
Principal executive
Wilfredo Jara Tirapegui
Enersis stake
(direct and indirect)
59.98% - Unchanged.
ENDESA FORTALEZA
Name
CGTF - Central Geradora
Termeléctrica Fortaleza S.A.
Type of company
Private company
Address
Rodovia 422, Km 1 s/n, Complexo
Industrial e Portuário de Pecém
Caucaia – Ceará, Brazil
Telephone
(55 85) 3464-4100
Subscribed and paid capital (ThCh$)
42,639,466
Corporate Purpose
a) Study, project, construct and
explore systems of production,
transmission, distribution and
commercialization of electricity
under concessions, permits or
authorizations under any title, and
other activities related to services
supply of any kind related to the
above activities; b) the acquisition,
obtaining and exploration of any
right, concession or privilege related
to the above activities and the
carrying out of all the other acts and
business necessary for achieving
its purposes; and c) participation in
the capital of other companies as
shareholder or partner, whatever
their purposes.
Business
Energy generation.
Board of directors
Guilherme Gomes Lencastre
Marcelo Andrés Llévenes Rebolledo
Luciano Galasso
Principal executives
Manuel Herrera Vargas
Raimundo Câmara Filho
Luiz Carlos Bettencourt
José Ignácio Pires Medeiros
Aurélio Bustilho de Oliveira
José Alves de Mello Franco
Eugenio Cabanes
Ana Claudia Gonçalves Rebello
ENDESA MARKET PLACE
Name
Endesa Market Place
(in liquidation)
Type of company
Foreign corporation
Address
Ribera de Loira, 60 CP 28042,
Madrid, Spain
Telephone
(3491) 213 1000
Subscribed and paid capital (euros)
6,743,800
Corporate Purpose
B2B and new technologies.
Liquidator
Ramón Cabezas Navas
Enersis stake
(direct and indirect)
15% - Unchanged.
Proportion of Enersis’ assets
0.04%
ENERGEX
Name
Energex Co.
Type of company
Exempt company
Address
Caledonian House P.O. Box 265
G, George Town, Grand Cayman,
Cayman Islands
Subscribed and paid capital (ThCh$)
5,071
Corporate Purpose
Any business or activity according to
the laws of the Cayman Islands. In
the case of businesses or activities
in the financial area, those reserved
for banks are excepted. It is also
forbidden to do business with firms
or persons domiciled in the Cayman
Islands.
Business
Investments.
Enersis stake
(direct and indirect)
54.30% (+0.73% variation).
Board of directors
Daniel Bortnik Ventura
Ricardo Rodríguez
enersis 09
ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARy AND ASSOCIATE COMPANIES
151
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
348
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Horacio Reyser
(There is currently a vacancy in the
Board).
Enersis stake
(direct and indirect)
29.99% - Unchanged.
ENIGESA
Name
Endesa Inversiones Generales S.A.
Type of company
Private company
Tax No.
96.526.450-7
Address
Santa Rosa 76, Santiago, Chile
Telephone
(56 2) 630 9000
Paid capital (ThCh$)
3,055,838
Corporate Purpose
The acquisition, sale, administration
and exploitation, for its own or third
party’s account, of all kind of real
estate, movable assets, securities and
other commercial paper; carry out
studies and consultancy; provide all
kind of services; participate in all kind
of investments and especially those
related to the electricity business;
participate in all kind of companies
and carry out all operations, acts
and contracts related to the above
purposes.
Business
Real estate.
Board of directors
Eduardo Escaffi Johnson
Pietro Corsi Misle
(There is currently a vacancy in the
Board).
Principal executive
Pietro Corsi Misle
Commercial relations
Rental of properties.
Enersis stake
(direct and indirect)
59.96% - Unchanged.
management of the companies
Gasoducto Atacama Chile Limitada,
Gasoducto Atacama Argentina
Limitada, GasAtacama Generación
Limitada and other companies
agreed to by the shareholders; b)
investment of its own or third party’s
resources, in all kind of assets,
corporeal or incorporeal, securities,
shares and commercial paper.
Business
Investments.
Board of directors
Joaquín Galindo Vélez
Raúl Sotomayor Valenzuela
Gonzalo Dulanto Letelier
(There is currently a vacancy in the
Board)
Deputy directors
Juan Benabarre Benaiges
Claudio Iglesis Guillard
Pedro Pablo Errázuriz
Domínguez
Eduardo Ojea Quintana
Principal executive
Rudolf Araneda Kauert
Enersis stake
(direct and indirect)
29.99% - Unchange.
GASATACAMA CHILE
Name
GasAtacama Chile S.A.
Type of company
Private company
Tax No.
78.932.860-9
and exploitation in any way of
the concessions referred to in the
General Electrical Services Law,
maritime concessions and water-
usage rights of any kind; e) the
transport of natural gas, through
its own means or together with
other parties within Chile or other
countries, including the construction,
location and exploitation of gas
pipelines and other activities related
directly or indirectly to it; f) invest
in all kind of assets, corporeal or
incorporeal, movable or fixed; g) the
organization and constitution of all
kind of companies whose purposes
are related or linked to energy in any
of its forms or that have electricity as
their principal input, or correspond
to any of the activities mentioned
above.
Business
Electricity generation and
transportation of gas.
Board of directors
Joaquín Galindo Vélez
Raúl Sotomayor Valenzuela
Gonzalo Dulanto Letelier
(There is currently a vacancy in the
Board).
Alternative directors
Juan Benabarre Benaiges
Claudio Iglesis Guillard
Pedro Pablo Errázuriz Domínguez
Eduardo Ojea Quintana
Principal executive
Rudolf Araneda Kauert
Enersis stake
(direct and indirect)
29.99% - Unchanged.
Address
Isidora Goyenechea 3365, piso 8, Las
Condes, Santiago, Chile
GASODUCTO ATACAMA
ARGENTINA
EÓLICA FAZENDA NOVA
Name
Eólica Fazenda Nova o Geraçãoa e
Comercialização de Energia S.A.
Type of Society
Private company
Address
Rua Felipe Camarão, nº 507, sala
104, Ciudad de Natal, Rio Grande do
Norte, Brazil
Telephone
(5521) 3607 9500
Paid capital (R$)
1,839,000
Corporate Purpose
(i) Generation, transmission,
distribution and commercialization
of energy, (ii) Participation in other
companies as a partner, shareholder,
or quota holders and (iii) Import
machinery and equipment for
generation, transmission, distribution
and commercialization of wind
energy.
Management
Marcelo Llévenes Rebolledo
Guilherme Gomes Lencastre
Enrique de las Morenas
Principal executives
Marcelo Llévenes Rebolledo
Enersis stake
(direct and indirect)
54.28% (new company)
GASATACAMA
Name
GasAtacama S.A.
Type of company
Private company
Tax No.
96.830.980-3
Telephone
(562) 366 3800
Paid capital (ThCh$)
93,826,272
Address
Isidora Goyenechea 3365, piso 8,
Santiago, Chile
Telephone
(562) 366 3800
Paid capital (ThCh$)
84,563,743
Corporate Purpose
a) The administration and
Corporate Purpose
a) Exploit the generation,
transmission, purchase, distribution
and sale of electric or any other
nature energy; b) the purchase,
extraction, exploitation, processing,
distribution, commercialization
and sale of solids, liquids and gas
fuels; c) the sale and engineering
services supply; d) the obtaining,
purchase, transfer, rental, charging
Name
Gasoducto Atacama Argentina S.A.
Type of company
Private company
Tax No.
78.952.420-3
Address
Isidora Goyenechea 3365, piso 8, Las
Condes, Santiago, Chile
Telephone
(562) 366 3800
Paid capital (ThCh$)
105,564,591
enersis 09
ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARy AND ASSOCIATE COMPANIES
152
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
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Corporate Purpose
The transport of natural gas, through
its own means or together with
other parties within Chile or other
countries, including the construction,
location and exploitation of gas
pipelines and other activities related
directly or indirectly to it
Business
Gas transportation.
Board of directors
Pedro De la Sotta Sánchez
Luis Vergara Aguilar
Rafael Zamorano Chaparro
Principal executives
Rudolf Araneda Kauert
Enersis stake
(direct and indirect)
29.99% - Unchanged.
GASODUCTO TALTAL
GASODUCTO TALTAL
Name
Gasoducto Taltal S.A.
Type of company
Private company
Tax No.
77.032.280-4
Address
Santa Rosa 76, Santiago, Chile
Telephone
(562) 630 9000
Corporate Purpose
The transport, commercialization
and distribution of natural gas,
through its own means or together
with other parties within Chile,
especially in the towns of Mejillones
and Paposo in the 2nd Region,
including the construction, location
and exploitation of gas pipelines and
other activities related directly or
indirectly to it
Business
Gas transportation.
Paid capital (ThCh$)
11,914,172
Board of directors
Rudolf Araneda Kauert
Pedro De la Sotta Sánchez
Rafael Zamorano Chaparro
Luis Vergara Aguilar
Deputy directors
Luis Cerda Ahumada
Alejandro Sáez Carreño
Gustavo Venegas Castro
Verónica Cortez Silva
Principal executive
Rudolf Araneda
Enersis stake
(direct and indirect)
29.99% - Unchanged.
GENERANDES PERÚ
Name
Generandes Perú S.A.
Type of company
Corporation
Address
Avda. Víctor Andrés Belaúnde 147,
Torre Real, piso 7, San Isidro, Lima,
Peru
Telephone
(511) 215 6300
Paid capital (ThCh$)
164,297,758
Corporate Purpose
Activities related to electricity
generation, directly and/or through
companies constituted for this
purpose.
Business
Investments.
Board of directors
Javier García Burgos Benfield
Juan Benabarre Benaiges
José Chueca Romero
Ignacio Blanco Fernández
Giora Almogy
Alberto Triulzi Mora
(There is currently a vacancy in the
Board)
Deputy directors
Julián Cabello Yong
José María Hidalgo Martín-Mateos
Milagros Noriega Cerna
Roberto Cornejo Spickernagel
Guillermo Lozada Pozo
Rosa María Flores-Aráoz Cedrón
Carlos Rosas Cedillo
Juan Carlos Camogliano Pazos
Principal executives
Carlos Luna Cabrera
Milagros Noriega Cerna
Enersis stake
(direct and indirect)
36.59% (unchanged).
GNL CHILE
Name
GNL Chile S.A.
Type of company
Private company
Tax No.
76.418.940-K
Address
Avda. Apoquindo 3.500, piso 6, Las
Condes, Santiago, Chile
Telephone
(562) 499 0920
Paid capital (ThCh$)
1,534,485
Corporate Purpose
a)Contract the services of the
liquefied natural gas (LNG) re-
gasification company GNL Quintero
S.A. and use all the LNG storage,
processing and re-gasification
capacity of its re-gasification
terminal, including its expansions if
any and any other matter stated in
the contract that the Company signs
for the use of the re-gasification
terminal; b) import LNG under
the Delivered ex Ship (DES) mode
from LNG suppliers under purchase
agreements; c) the sale and delivery
of natural gas under contracts signed
by the company with its customers;
d) administer and coordinate the
programming and nominations
of LNG loads, and the delivery of
natural gas among the different
customers; e) comply with all its
obligations and demand compliance
with all its rights under the contracts
mentioned and coordinate all the
activities covered by them, and in
general carry out any type of act
or contract that may be necessary,
useful or convenient for meeting its
purposes.
Business
Sale of LNG.
Board of directors
Rodrigo Azócar Hidalgo
Eduardo Morandé Montt
Deputy directors
Gonzalo Palacios Vásquez
Rosa Herrera Martinez
José Venegas Maluenda
(There is currently a vacancy in the
Board).
Principal executive
Eric Ahumada Gómez
Enersis stake
(direct and indirect)
19.99% - Unchanged.
GNL QUINTERO
Name
GNL Quintero S.A.
Type of company
Private company
Tax No.
76.788.080-4
Address
Rosario Norte 530,oficina 1303, Las
Condes, Santiago, Chile
Telephone
(562) 499 0900
Paid capital (ThChM$)
99,331,942
Corporate Purpose
Development, financing, design and
engineering, supply, construction,
start-up, test, completion,
acquisition, operation and
maintainance of the liquefied natural
gas (LNG) re-gasification terminal
and any other activity leading or
related to this purpose, including
but not limited to the direction and
management of all the commercial
agreements necessary for the
reception of LNG (or delivery to
customers), LNG re-gasification,
distribution of LNG re-gasified to the
respective distribution point and the
sale of storage services and capacity,
processing and re-gasification of
the Re-gasification terminal and its
expansions, if any.
Business
LNG re-gasification.
Board of directors
William Jude Way
Eduardo Morandé Montt
Elizabeth Grace Spomer
Rodrigo Azócar Hidalgo
(There is currently a vacancy in the
Board).
Deputy directors
Claudio Iglesis Guillard
Diego Hollweck
Francisco Gazmuri Schleyer
Rosa Herrera Martinez
Patricio Silva Barroilhet
Principal executive
Antonio Bacigalupo Gittins
enersis 09
ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARy AND ASSOCIATE COMPANIES
153
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
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Enersis stake
(direct and indirect)
12% - Unchanged.
HIDROINVEST
Name
Hidroinvest S.A.
Type of company
Corporation
Address
Avda. España 3301,
Buenos Aires, Argentina
Telephone
(5411) 4307 3040
Paid capital (ThCh$)
33,021,025
Corporate Purpose
Acquire and maintain a majority
shareholding in Hidroeléctrica El
Chocón S.A.
Business
Investments.
Board of directors
José Miguel Granged Bruñen
Miguel Ortiz Fuentes
Fernando Claudio Antognazza
Julio Valbuena Sánchez
Carlos Martín Vergara
Francisco Domingo Monteleone
Roberto José Fagan
(There is currently a vacancy in the
Board)
Deputy directors
Daniel Garrido
José María Hidalgo Martín-Mateos
Juan Carlos Blanco
Jorge Burlando Bonino
Rodrigo Quesada
Rodolfo Bettinsoli
Fernando Boggini
(There is currently a vacancy in the
Board)
Enersis stake
(direct and indirect)
57.64% - Unchanged.
INGENDESA
Name
Empresa de Ingeniería Ingendesa S.A.
Type of company
Private company
Tax No.
96.588.800-4
Address
Santa Rosa 76, Santiago, Chile
Telephone
(562) 630 9000
Paid capital (ThCh$)
2,600,176
Corporate Purpose
Engineering services supply,
inspection of works, inspection
and reception of materials and
equipment, laboratory, appraisals,
management of companies in
different fields, environmental
advice, including the developing
environmental impact studies and in
general consultancy services in every
specialty, in Chile and abroad.
Business
Engineering services.
Board of directors
Juan Benabarre Benaiges
Rafael de Cea Chicano
Aníbal Bascuñán Bascuñán
Enersis stake
(direct and indirect)
59.98% - Unchanged.
INGENDESA - ARA
Name
Sociedad Consorcio
Ingendesa - Ara Ltda.
Type of company
Limited partnership
Tax No.
76.197.570-6
Address
Santa Rosa 76, piso 10,
Santiago, Chile
Telephone
(562) 630 9000
Paid capital (ThCh$)
1,000
Corporate Purpose
Provision of engineering services,
being able to perform all kinds of
works, assemble and launch, for
itself or others, all establishments,
industrial or not, providing to himself
or others the goods or services
produced. It will also be a special
object of the company the award
and execution of the Advisory
Agreement to the Concession
Contract Tax Inspectorate Justice
Center of Santiago..
INGENDESA MINMETAL
Name
Consorcio Ingendesa–Minmetal Ltda.
Business
Engineering services.
Type of company
Limited partnership
Representatives
Rodrigo Alcaíno Mardones
Alejandro Santolaya de Pablo
Alternative representatives
Cristian Araneda Valdivieso
Elías Arce Cyr
Julio Montero Montegú
(There is currently a vacancy in the
Board).
Tax No.
77.573.910-k
Address
Santa Rosa 76, Santiago, Chile
Telephone
(562) 630 9000
Enersis stake
(direct and indirect)
29.99% - Unchanged.
INGENDESA BRASIL
Name
Ingendesa do Brasil Ltda.
Address
Avda. Rio Branco 115, pavimento 10,
sala 1005, Centro, Río de Janeiro,
Brazil
Telephone
(5521) 2232 9039
Paid capital (ThCh$)
133,845
Corporate Purpose
Services of engineering, studies,
projects, technical consultancy,
administration, inspection and
supervision of works supply,
inspection and reception of
materials and equipment,
laboratory, appraisals, commercial
representation of local and foreign
engineering companies, and other
services that the legal powers permit
in the practice of the professions of
engineering, architecture, agronomy,
geology and meteorology in all their
specialties.
Business
Engineering services.
Corporate Purpose
The object includes the provision
of engineering services, being able
to run by itself or third parties,
all kinds of works, assemble and
launch, for themself or others, all
establishments, industrial or not,
providing for themself or others
the goods and services produced. It
will also be a special object of the
company the award and execution of
construction and engineering works
that make up the contract called LD
14.1 technical and administrative
advice to the Tax Inspectorate of
Construction Contract Project LD
-4.1 Laja - Diguillín.
Business
Engineering services.
Paid capital (ThCh$)
2,000
Representatives
Rodrigo Muñoz Pereira
Rodrigo Alcaíno Mardones
Deputy representatives
Osvaldo Dinner Reich
Carlos Freire Canto
(There is currency a vacancy)
Enersis stake
(direct and indirect)
29.99% - Unchanged.
INMOBILIARIA
MANSO DE VELASCO
Name
Inmobiliaria Manso de
Velasco Ltda.
Representative
Sergio Campos Ribeiro
Type of company
Limited partnership
Enersis stake
(direct and indirect)
59.98% - Unchanged.
Tax No.
79.913.810-7
Principal executive
Rodrigo Alcaíno Mardones
Type of company
Limited partnership
enersis 09
ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARy AND ASSOCIATE COMPANIES
154
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
348
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Address
Miraflores 383, piso 29,
Santiago, Chile
Telephone
(562) 378 4700
Corporate Purpose
Acquisition, disposal,
commercialization and exploitation
of real estate and investment
companies.
Business
Real estate.
Subscribed and paid capital (ThCh$)
25,916,800
Representatives
Cristóbal Sanchez Romero
Andrés Salas Estrades
Principal executives
Andrés Salas Estrades
Alfonso Salgado Menchaca
Bernardo Küpfer Matte
Hugo Ayala Espinoza
Business
Investments.
Juan Pablo Salinas
Cristian Morales Jaureguiberry
Juan Oliva Vásquez
Board of directors
Ignacio Blanco Fernández
Reynaldo Llosa Barber
Rafael López Rueda
Ramiro Alfonsín Balza
(Chief Regional Planning and Control
Officer of Enersis)
Gonzalo Carbó de Haya
Deputy directors
Manuel Muñoz Laguna
Ricardo Camezzana Leo
Fernando Fort Marie
Walter Néstor Sciutto Brattoli
Zoila Patricia Mascaró Díaz
Principal executives
Carlos Andreani Luco
Enersis stake
(direct and indirect)
25.49% - Unchanged.
INVERSIONES
ENDESA NORTE
Name
Inversiones Endesa Norte S.A.
Principal executive
Ignacio Blanco Fernández
Type of company
Private company
Enersis stake
(direct and indirect)
57.54% (+1.64% variation).
Proportion of Enersis’s assets
0.52%
Tax No.
96.887.060-2
Address
Santa Rosa 76, Santiago, Chile
Telephone
(562) 630 9000
Type of company
Limited partnership
Tax No.
76.014.570-K
Address
Isidora Goyenechea 3365, piso 8,
Santiago, Chile
Telephone
(562) 366 3800
Corporate Purpose
a) The direct or indirect participation
through any kind of association
in companies whose purposes are
one or more of the following: i)
the transport of natural gas in any
of its forms; ii) The generation,
transmission, purchase, distribution
and sale of energy, and iii) financing
of the activities stated in i) and ii)
above managed by third parties. b)
The perception and investment of
the assets invested in. The purposes
include all lucrative activities related
to the above and other businesses
that the partners agree.
Commercial relations
Rental of properties, trading desk,
accounting, tax and other services
supply. Trading current account.
INVERSIONES ELECTROGAS
Name
Inversiones Electrogas S.A.
Enersis stake
100% - Unchanged.
Type of company
Private company
Proportion of Enersis’s assets
0.22%
Tax No.
96.889.570-2
INVERSIONES DISTRILIMA
Name
Inversiones Distrilima S.A.
Type of company
Foreign corporation
Address
Jr. Teniente César López Rojas 201,
Maranga, San Miguel, Lima, Peru.
Telephone
(511) 561 1604
Address
Evaristo Lillo 78, piso 4, Of. 41,
Santiago, Chile
Telephone
(562) 321 7737
Corporate Purpose
To buy, sell, invest and hold shares in
the private company Electrogas S.A.
Business
Investments.
Paid capital (ThCh$)
13,196,432
Subscribed and paid capital (ThCh$)
32,841,625
Corporate Purpose
Make investments in other
companies, most preferably in
exploitation of natural resources,
and especially those related to
the distribution, tramission and
generation of electricity.
Board of directors
Claudio Iglesis Guillard
Juan Eduardo Vásquez Moya
Pedro Gatica Kerr
Enrique Donoso Moscoso
Rosa Herrera Martínez
Deputy directors
Jorge B. Larraín Matte
Ricardo Santibáñez Zamora
Corporate Purpose
Make investments in energy projects
in the north of Chile related to the
companies of the GasAtacama
project.
Business
Investments.
Paid capital (ThCh$)
169,127,583
Business
Investments.
Paid capital (ThCh$)
92,571,642
Board of directors
Daniel Bortnik Ventura
(There are currently two vacancies in
the Board).
Deputy directors
Claudio Iglesis Guillard
Juan Benabarre Benaiges
Raúl Arteaga Errázuriz
Principal executives
Juan Benabarre Benaiges
Enersis stake
(direct and indirect)
59.98% - Unchanged
Board of directors
Joaquín Galindo Vélez
Raúl Sotomayor Valenzuela
Gonzalo Dulanto Letelier
(There is currently a vacancy in the
Board).
Deputy directors
Juan Benabarre Benaiges
Claudio Iglesis Guillard
Pedro Pablo Errázuriz Domínguez
Eduardo Ojea Quintana
Principal executive
Rudolf Araneda Kauert
Enersis stake
(direct and indirect)
29.99% - Unchanged.
INVERSORA
CODENSA S.A.S.
INVERSIONES
GASATACAMA HOLDING
Name
Inversora Codensa S.A.S.
Name
Inversiones Gasatacama
Holding Limitada
Type of company
Stock simplified company
enersis 09
ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARy AND ASSOCIATE COMPANIES
155
Address
Carrera 11 N°82-76, Piso 4, Bogotá,
Colombia
Participación de Enersis
(directa e indirecta)
61,10% (+1,59% de variación)
Paid capital (ThCh$)
1,224
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
306
348
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Telephone
(571) 601 6060
Capital (Colombian $)
5,000,000
Corporate Purpose
Investment in residential energy
public utility services, especially the
acquisition of shares in any company
in that business or that in turn invests
in that business according to the
definition set by Law 142 of 1994.
Business
Investments.
Legal representative
Cristian Herrera Fernández
Enersis stake
(direct and indirect)
21.73% - Unchanged
INVESTLUZ
Razón social
Investluz S.A.
Tipo de sociedad
Sociedad Anónima Extranjera
Dirección
Rua Padre Valdevino, N° 150-Parte,
Fortaleza, Ceará, Brasil
Teléfono
(5585) 3216 1350
Capital suscrito y pagado (M$)
267.899.274
Objeto social
Participar del capital social de la
Companhia Energetica do Ceará y
en otras sociedades, en Brasil y en
el exterior, en calidad de socio o
accionista.
Actividades que desarrolla
Sociedad de inversiones.
Directorio
Sociedad sin Directorio
Comité de Gerentes
Abel Alves Rochinha
Luiz Carlos Bettencourt
Silvia Cunha Saraiva Pereira
José Renato Ferreira Barreto
Olga Jovanna Carranza Salazar
KONECTA CHILE
Name
Konecta Chile S.A.
Type of company
Private company
Tax No.
76.583.350-7
Address
Miraflores 383, piso 26,
Santiago, Chile
Telephone
(56 2) 447 8687
Paid capital (ThCh$)
300
Corporate Purpose
Contact center, outsourcing,
organization of events, IT services,
collections, movable assets trading,
investments.
Business
Call center.
Board of directors
José Ignacio González Alemán
Miguel Fernández Robledo
Rafael Miguel Barroso Aceña
Leonardo Covalschi Buono
Juan Seco Sousa
Principal executive
Patricio Martínez Sola
Enersis stake
(direct and indirect)
26.20% - Unchanged.
LUZ ANDES
Name
Luz Andes Limitada
Type of company
Limited partnership
Tax No.
96.800.460-3
Address
Santa Rosa 76, piso 5,
Santiago, Chile
Telephone
(56 2) 634 6310
Corporate Purpose
Distribution and sale of electricity
and sale of home, sports,
entertainment and computers
electrical appliances.
Type of company
Private company
Tax No.
96.504.980-0
Address
Santa Rosa 76, Santiago, Chile
Business
Distribution of electricity.
Telephone
(562) 630 9000
Principal executive
Claudio Inzunza Díaz
Enersis stake
(direct and indirect)
99.09% - Unchanged.
Corporate Purpose
The generation, transport,
distribution and supply of electricity
for which it may acquire and use the
respective concessions and grants.
PANGUE
Name
Empresa Eléctrica Pangue S.A.
Type of company
Private company
Tax No.
96.589.170-6
Address
Santa Rosa 76, Santiago, Chile
Telephone
(562) 630 9000
Corporate Purpose
The production, transport,
distribution and supply of electricity
from the Pangue plant in the valley
of the Biobío river.
Business
Electricity generation.
Paid capital (ThCh$)
91,041,497
Board of directors
Claudio Iglesis Guillard
Alan Fischer Hill
Alejandro García Chacón
Principal executive
Lionel Roa Burgos
Enersis stake
(direct and indirect)
56.97% - Unchanged.
PEHUENCHE
Name
Empresa Eléctrica Pehuenche S.A.
Business
Electricity generation.
Paid capital (ThCh$)
218,818,329
Board of directors
Claudio Iglesis Guillard
Alan Fischer Hill
Pedro Gatica Kerr
Enrique Lozán Jiménez
Osvaldo Muñoz Díaz
Alejandro García Chacón
Daniel Bortnik Ventura
Principal executive
Lucio Castro Márquez
Enersis stake
(direct and indirect)
55.57% - Unchanged.
PROGAS
Name
Progas S.A.
Type of company
Private company
Tax No.
77.625.850-4
Address
Isidora Goyenechea 3356, 8 piso,
Santiago, Chile
Corporate Purpose
Develop the following businesses
in the 1st, 2nd and 3rd Regions
of Chile: a) the acquisition,
production, storage, transport,
distribution, transformation
and commercialization of
natural gas; b) the acquisition,
production, storage, transport,
distribution, transformation and
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ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARy AND ASSOCIATE COMPANIES
156
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
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commercialization services in the
Capital Federal and Greater Buenos
Aires, all in accordance with the
international public tender for the
sale of Class A shares in Edenor
S.A. and Edesur S.A. and applicable
regulations.
Business
Conduction, supervision and control
of the operation of part of the
Argentine electricity system.
Board of directors
Alejandro García Chacón
Alan Fischer Hill
Claudio Iglesis Guillard
Pedro Gatica Kerr
Ricardo Santibáñez Zamorano
Deputy directors
Rodrigo Naranjo Martorell
Carlo Carvallo Artiga
Osvaldo Muñoz Díaz
Claudio Betti Pruzo
Enrique Lozán Jiménez
commercialization of other oil
derivatives and fuels in general; c)
the supply of services, manufacture,
commercialization of equipment and
materials, and carrying out works
related to the above purposes or
those necessary for their execution
and development; and d) any other
activity necessary or leading to
compliance with the above purposes.
Paid capital (ThCh$)
965
Board of directors
Rudolf Araneda Kauert
Luis Cerda Ahumada
Pedro De La Sotta Sánchez
Principal executive
Alejandro Sáez Carreño
Enersis stake
(direct and indirect)
29.99% - Unchanged.
SACME
Name
Sacme S.A.
Type of company
Private company
Address
Avda. España 3251, Ciudad
Autónoma de Buenos Aires,
Argentina
Board of directors
Ricardo Héctor Sericano
Osvaldo Ernesto Rolando
Leandro Ostuni
Eduardo Maggi
Deputy directors
Abel Cresta
Leonardo Félix Druker
José Luis Marinelly
Pedro Rosenfeld
Representatives
Héctor Ruiz Moreno
Clemente Alonso Hidalgo
Jaime Javier Barba
Deputy representatives
Juan Antonio Garade
Gabriela Leoncini
Daniel Peraudo
Principal executive
Francisco Cerar
Enersis stake
(direct and indirect)
32.69% - Unchanged.
Telephone
(5411) 4361 5107
SAN ISIDRO
Subscribed and paid capital
(Argentine $)
12,000
Name
Compañía Eléctrica San Isidro S.A.
Corporate Purpose
Conduct, supervise and control
the operation of the electricity
generation, transmission and sub-
transmission system of the Capital
Federal and Greater Buenos Aires,
and the interconnections with the
Argentine Interconnection System
(SADI). Represent the companies
Distribuidora Edenor S.A. and Edesur
S.A. in the operating management
before the Compañía Administradora
del Mercado Mayorista Eléctrico
(CAMMESA) (the wholesale market
administrator). In general, take all
kind of actions for satisfactorily
carrying out its management, as
being constituted for this purpose
by the concessionaire companies
of the electricity distribution and
Type of company
Private company
Tax No.
96.783.220-0
Address
Santa Rosa 76, Santiago, Chile
Telephone
(56 2) 630 9000
Corporate Purpose
The generation, transport,
distribution and supply of electricity.
Business
Electricity generation
Paid capital (ThCh$)
39,005,904
Principal executives
Jaime Pino Cox
Sergio Zúñiga Rojo
Enersis stake
(direct and indirect)
49% - Unchanged.
SOCIEDAD PORTUARIA CENTRAL
CARTAGENA S.A.
Name
Sociedad Portuaria Central
Cartagena S.A.
Type of Society
Corporation
Adderss
Carrera 13 A Nº 93-.66, piso 2
Bogotá, D.C. Colombia.
Paid capital ($ Colombianos)
5,800,000
Corporate Purpose
The company’s purpose is the
investment, construction and
maintenance of ports, port
management, the load and
unloading service supply, storage
in ports and other services
directly related to port activities,
development and operation of a
multipurpose port.
Board of Directors
Fernando Gutiérrez Medina
Luis Fermín Larumbe
Roberto Ospina Pulido
Deputy directors
Gustavo Gómez Cerón
Juan Manuel Pardo
Luis Fernando Salamanca
Principal executives
Fernando Gutiérrez Medina
Enersis stake
(direct and indirect)
16.37% (New company)
SOUTHERM CONE POWER
ARGENTINA
Name
Southern Cone Power Argentina S.A.
Principal executive
Claudio Iglesis Guillard
Enersis stake
(direct and indirect)
59.98% - Unchanged.
SISTEMAS SEC
Name
Sistema SEC S.A.
Type of company
Private company
Tax No.
99.584.600-4
Address
Miraflores 383, piso 10, Of. 1004,
Santiago, Chile
Corporate Purpose
The company’s purpose is the
engineering, supply, installation and
maintenance of signaling, electrical
and communications systems for
all types of works and services,
especially transport lines, and the
planning, design, engineering,
management, construction,
installation, rehabilitation,
implementation, operation,
preservation and maintenance of
all, industrial, infrastructure, civil or
engineering types of works, in Chile
or abroad.
Business
Develop and maintain signaling,
electrification and communications
systems.
Paid capital (ThCh$)
2,083,830
Type of company
Corporation
Board of directors
Cristóbal Sanchez Romero
Ángel Aguilar Bueno
Klaus Winkler Speringer
Jaime Godoy Cifuentes
Francisco Fernández Ávila de Inza
Address
Avda. España 3301, Buenos Aires,
Argentina
Telephone
(54 11) 4307 3040
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ANNUAL REPORT
ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARy AND ASSOCIATE COMPANIES
157
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
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Subscribed and paid capital (ThCh$)
3,135,978
Corporate Purpose
For its own or third party’s account,
usual purchase and sale of electricity
in the wholesale market produced by
other parties and to be consumed by
others. It may also hold participations
in companies dedicated to electricity
generation.
Board of directors
José Miguel Granged Bruñen
Roberto José Fagan
Fernando Claudio Antognazza
Deputy director
Juan Carlos Blanco
Enersis stake
(direct and indirect)
59.98%
SYNAPSIS
Name
Synapsis Soluciones y Servicios IT
Limitada
Type of company
Limited partnership
Tax No.
96.529.420-1
Address
Miraflores 383, piso 27, Santiago
Telephone
(562) 397 6600
Subscribed and paid capital (ThCh$)
3,943,580
Corporate Purpose
Supply and sell services and
equipment related to computation
and data processing for public
utilities and other Chilean and
foreign companies. Sell and supply in
Chile and abroad services, equipment
and training related to computation
and data processing. Invest in
companies whose purposes are
similar, related or linked to energy or
computers in all their forms or the
supply of public utilities or whose
principal input is electricity.
Deputy representatives
Eduardo López Miller
Raúl Mella Varas
Principal executives
Leonardo Covalschi Buono
Raúl Mella Varas
Jorge Orozco Ospina
Antonio Bravo Narváez
Jesús Vallejo Gómez
Aldo Monje Roma
Rocio Niño Guerra
Aldo Cortes Díaz
Luis Campos Rivas
Comercial relations
Trading current account, financial
management services, data
center and support services
supply. Maintenance of systems,
micro IT and electronic mail.
Telecommunications and tax
consultancy. Services supply.
Enersis stake
(direct and indirect)
100% - Unchanged
Proportion of Enersis’s assets
0.20%
SYNAPSIS ARGENTINA
Name
Synapsis Argentina S.R.L.
Type of company
Limited partnership
Address
Azopardo 1335, e/ Juan de Garay
y Cochabamba, Cod. Postal 1064,
Capital Federal, Buenos Aires,
Argentina
Telephone
(5411) 4021 8300
Subscribed and paid capital (ThCh$)
175,466
Corporate Purpose
Mainly supply of services
related to computation, data
processing and other IT services in
telecommunications and control,
as well as training in the activities
related to the services provided,
among others.
Business
IT services.
Business
IT services.
Representatives
Cristóbal Sánchez Romero
Leonardo Covalschi Buono
Principal executives
Cristóbal Sanchez Romero
Leonardo Covalschi Buono
Fernando Mayorano
Mariano F. Grondona
Enersis stake
(direct and indirect)
100% - Unchanged
Proportion of Enersis’s assets
0.01%
SYNAPSIS BRASIL
Name
Synapsis Brasil Limitada
Type of company
Limited partnership
Address
Avda. das Américas 3434, Bloco 2,
Sala 403, Barra da Tijuca, Río Janeiro,
Brazil - Cep: 22640-102
Telephone
(5521) 3431 3850
Subscribed and paid capital (ThCh$)
1,122,091
Corporate Purpose
Supply of consultancy services and
technical assistance related to the
IT sector and data processing for
Brazilian and foreign companies;
the development of software and
systems; the sale of computer
and data processing equipment;
the manufacture, purchase, sale,
import, export, representation,
consignment and distribution of all
types of assets, mobile and fixed,
connected to purposes stated
above and participations in other
civil or commercial, national or
foreign, companies that operate
in the sectors of IT, electricity or
the management and/or operation
of public utilities in electricity,
telecommunications, water for
domestic or industrial use and
sewage, as shareholder or partner;
and participations in joint ventures,
consortia and partnerships.
Business
IT services.
Board of directors
Chairman
Carlos Alberto Acero
Principal executives
Carlos Alberto Acero
Jacqueline Gómez Da Silva
Marcia Caporazzo Almeida
José Roberto Galdino
Alexandre Maiotto
Enrique Scarnati
Cleber Rocha
Enersis stake
(direct and indirect)
100% - Unchanged
SYNAPSIS COLOMBIA
Name
Synapsis Colombia Limitada
Type of company
Limited partnership
Address
Carrera 14 85-68, piso 5, Edificio
Torres Bogotá, D.C.
Telephone
(571) 607 6000
Subscribed and paid capital (ThCh$)
58,691
Corporate Purpose
Supply and sell services and
equipment related to computation
and data processing for public utility
and other national and foreign
companies.
Business
IT services.
Representatives
Leonardo Covalschi Buono
Edgar Enrique Martínez Niño
Robin Barquin Pardo
Ana Patricia Delgado Meza
Principal executives
Robin Barquín Pardo
Edgar Martínez Niño
Sonia Rodríguez García
Eduardo Ruiz Alonso
Patricia Delgado Meza
Norberto Duarte
Enersis stake
(direct and indirect)
100% - Unchanged.
Proportion of Enersis’s assets
0.00%
SYNAPSIS PERÚ
Name
Synapsis del Perú S.R.L.
Type of company
Limited partnership
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158
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
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Address
Jr. Teniente César López Rojas 201,
piso 10, Maranga, San Miguel, Lima,
Peru
Telephone
(511) 561 0386
Subscribed and paid capital (ThCh$)
165,851
Corporate Purpose
Provide services related to
computation, data processing and
other IT services and control, and
training in the activities related to the
services provided.
Business
IT services.
Principal executives
Luis Sifuentes Castillo
Jessenia Quevedo Fudino
Pedro Luna Delgado
Carlos Castillo Prada
Rafael Dávil Cainero
Ismael Ayala Falcón
Enersis stake
(direct and indirect)
100% - Unchanged.
Business
Electricity generation.
Business
Electricity generation.
Board of directors
Bernardo Velar de Irigoyen
José Miguel Granged Bruñen
Fernando Claudio Antognazza
Milton Gustavo Tomás Pérez
Jorge Aníbal Rauber
Fermín Oscar Demonte
Horacio Jorge Turri
Guillermo Luis Fiad
José María Vásquez
Deputy directors
Adrián Salvatore
Roberto José Fagan
Omar Ramiro Algacibiur
Sergio Raúl Sánchez
Juan Carlos Blanco
Rigoberto Orlando Mejía Aravena
Patricio Testotelli
Brian Henderson
Leonardo Pablo Kast
Principal executives
Alberto Garmendia Rodriguez
Armando Federico Duvo
Claudio Majul
Marcelo Walter Holmgren
Enersis stake
(direct and indirect)
8.32%- Unchanged.
.
Board of directors
José Miguel Granged Bruñen
Fernando Claudio Antognazza
Horacio Jorge Turri
Milton Gustavo Tomás Pérez
Jorge Aníbal Rauber
Guillermo Luis Fiad
Adrian Salvatore
Rigoberto Orlando Mejía Aravena
José María Vásquez
Deputy directors
Bernardo Velar de Irigoyen
Roberto José Fagan
Sergio Raúl Sánchez
Leonardo Pablo Kast
Juan Carlos Blanco
Patricio Testorelli
Omar Ramiro Algacibiur
Brian Henderson
(There is currently a vacancy in the
Board).
Principal executives
Miguel Ortiz Fuentes
Gustavo Manifesto
Óscar Zapiola
Daniel Garrido
Enersis stake
(direct and indirect)
8.32% - Unchanged.
TERMOELÉCTRICA JOSÉ DE SAN
MARTÍN
TERMOELÉCTRICA MANUEL
BELGRANO
TESA
Name
Termoeléctrica José de San
Martín S.A.
Type of company
Corporation
Address
Hipólito Bouchard 547, piso 27,
Buenos Aires, Argentina
Telephone
(511) 561 0386
Subscribed and paid capital (ThCh$)
73,430
Corporate Purpose
The production of electricity
and its block commercialization,
particularly the management of the
equipment, construction, operation
and maintenance of a thermal plant
in accordance with the “Definitive
agreement for the management
and operation of the projects for
the re-adaptation of the MEM in the
terms of Resolution SE 1427/2004”,
approved by Resolution SE
1193/2005 (“the Agreement”).
Name
Termoeléctrica Manuel
Belgrano S.A.
Type of company
Corporation
Address
Suipacha 268, piso 12, Buenos Aires,
Argentina
Telephone
(511) 561 0386
Subscribed and paid capital (ThCh$)
73,430
Corporate Purpose
The production of electricity
and its block commercialization,
particularly the management of the
equipment, construction, operation
and maintenance of a thermal plant
in accordance with the “Definitive
agreement for the management
and operation of the projects for
the re-adaptation of the MEM in the
terms of Resolution SE 1427/2004”,
approved by Resolution SE
1193/2005 (“the Agreement”).
Name
Transportadora de Energía S.A.
Type of company
Corporation
Address
Bartolomé Mitre 797, piso 13, Of. 79,
Buenos Aires, Argentina
Telephone
(5411) 4394 1161
Paid capital (ThCh$)
8,759,405
Corporate Purpose
Supply of electricity transport
services in high tension in relation
to national and international
electricity systems, according
to current legislation, for which
it may take part in national or
international tenders, become
a public-utility concessionaire in
local or international high-tension
electricity transmission, and perform
all activities necessary for these
purposes. Are excluded all those
activities covered by the Financial
Institutions Act and any other that
requires the assistance of public
savings.
Business
Energy transmission.
Board of directors
José María Hidalgo Martín-Mateos
Guilherme Lencastre
Arturo Miguel Pappalardo
Deputy directors
Juan Carlos Blanco
Roberto José Fagan
José Venegas Maluenda
Principal executive
Arturo Pappalardo
Enersis stake
(direct and indirect)
54.30% (0.73% variation).
TRANSQUILLOTA
Name
Transmisora Eléctrica de
Quillota Ltda.
Type of company
Limited partnership
Tax No.
77.017.930-0
Address
Santa Rosa 76, Santiago, Chile
Telephone
(562) 630 9000
Paid capital (ThCh$)
2,202,223
Corporate Purpose
The transport, distribution and
supply of electricity for its own or
third party’s account.
Business
Electricity transmission.
Representatives
Gabriel Carvajal Menególlez
Ricardo Santibáñez Zamorano
Juan Eduardo Vásquez Moya
Enrique Donoso Moscoso
Deputy representatives
Alfonso Bahamondes Morales
Enrique Sánchez Novoa
Ricardo Sáez Sánchez
Carlos Ferruz Bunster
Enersis stake
(direct and indirect)
29.99% - Unchanged.
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TÚNEL EL MELÓN
Name
Sociedad Concesionaria
Túnel El Melón S.A.
Type of company
Private company
Tax No.
96.671.360-7
Address
Santa Rosa 76, Santiago, Chile
Telephone
(562) 630 9000
Paid capital (ThCh$)
46,709,460
Corporate Purpose
Execution, construction and
exploitation of the public works
called Túnerl El Melón and
complementary services supply,
authorized by the Ministry of Public
Works.
Business
Infrastructure.
Board of directors
Jorge Alé Yarad
Renato Fernández Baeza
(There is currently a vacancy in the
Board).
Principal executive
Maximiliano Ruiz Ortiz
Enersis stake
(direct and indirect)
59.98% - Unchanged.
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
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Notes:
1. There are no acts or contracts
entered into by Enersis S.A. with
subsidiaries or affiliates that
significantly influence the operations
of Enersis S.A.
2. Enersis has no direct investment
in the subsidiaries and affiliates
which do not include the heading
Proportion of Enersis’s assets.
3. Enersis has no commercial
relations with the subsidiaries and
affiliates which do not include the
heading Commercial relations.
enersis 09
ANNUAL REPORT
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
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enersis 09
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DECLARATION OF RESPONSIBILITy
161
Declaration of Responsibility
The directors and chief executive officer of Enersis, the signatories to this declaration, swear to accept responsibility for the
accuracy of all the information contained in this document, in compliance with general rule No.30 of the Superintendency of
Securities and Insurance.
CHAIRMAN
VICECHAIRMAN
DIRECTOR
DIRECTOR
Pablo Yrarrázaval Valdés
Tax ID No: 5,710,967-K
Andrea Brentan
Tax ID No: C832206
Rafael Miranda Robredo
Tax ID No: 48,070,966-7
Hernán Somerville Senn
Tax ID No: 4,132,185-7
DIRECTOR
DIRECTOR
Eugenio Tironi Barrios
Tax ID No: 5,715,860-3
Patricio Claro Grez
Tax ID No: 5,206,994-7
DIRECTOR
Vacante
CHIEF EXECUTIVE OFFICER
Ignacio Antoñanzas Alvear
Tax ID No: 22,298,662-1
Contents
Cover
Brief Presentation
Chairman’s letter to shareholders
Highlights of 2009
Main Financial and Operational Indicators
Identification of the Company
Ownership and Control
Administration and Personnel
Share Transactions
Dividend Policy
Investment and Financing Policy 2009
The Company’s Businesses
Risk Factors
The Electricity Business by Country
Argentina
Brazil
Chile
Colombia
Peru
Other Businesses
Sustainability
Identification of the Subsidiary
and Associate Companies
Declaration of Responsibility
Consolidated Financial Statements
Enersis Announces Consolidated Results
Summarized Financial Statements
by Subsidiary
1
2
4
11
15
17
21
25
39
47
51
55
69
73
74
84
96
108
116
125
133
141
161
163
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