Enel Spa · MIL:ENEL
Enel Spa — Q1 2013 Earnings Presentation
45 slides from Enel Spa's earnings presentation, May 7, 2013
Slide 1: 1Q 2013 Results
Enel SpA Investor Relations 1Q 2013 Results May 7, 2013
Slide 2: Electricity demand vs. plan assumptions
Enel SpA 1Q 2013 Results Investor Relations Electricity demand1 vs. plan assumptions Electricity demand 1Q2013 Electricity demand 2012-2017 CAGR 1Q13 actual -4.0% Italy +1.1% Italy FY13 budget -0.1% Spain2 1Q13 actual -4.3% Spain2 +1.1% FY13 budget -2.0% 1Q13 actual -1.7% Russia +1.4% Russia Enel Sp
Slide 3: Financial highlights
Enel SpA 1Q 2013 Results Investor Relations Financial highlights Consolidated results 1Q12 % €mn 1Q12 restated 1 1Q13 Revenues 21,193 21,193 20,885 -1.5 EBITDA 4,302 4,257 4,077 -4.2 EBIT 2,902 2,859 2,554 -10.7 Group net income 1,184 1,154 852 -26.2 Enel SpA – Investor Relations Group net ordinary
Slide 4: From EBIT to Net Income
Enel SpA 1Q 2013 Results Investor Relations From EBIT to Net Income 1Q12 €mn 1Q12 restated 1 1Q13 % EBIT 2,902 2,859 2,554 -10.7 Net financial charges (635) (635) (674) +6.1 Interest charges 747 747 734 -1.7 Other (112) (112) (60) -46.4 Net income from equity investments using equity method 26 26 29
Slide 5: Focus on forward electricity sales
Enel SpA 1Q 2013 Results Investor Relations Focus on forward electricity sales Level of total production hedged (%) Italy Spain2 100 100 100 100 ~5 ~ 50 ~ 85 ~ 95(1) ~ 50(1) ~ 15 2013 2014 2013 2014 Latam Slovakia Enel SpA – Investor Relations 100 100 100 100 ~ 25 ~ 30 ~ 80 Unhedged ~ 75 ~ 70 Hedged
Slide 6: Group EBITDA evolution
Enel SpA 1Q 2013 Results Investor Relations Group EBITDA evolution (€mn) -4.2% 4,257 -144 +64 +64 -34 -212 +99 -17 4,077 41 379 24 478 Latam operations: 787 €mn Latam operations: 1,896 715 €mn S&H1 1,684 Iberian operations: 1,109 €mn EGP Iberian operations: 969 €mn Enel SpA – Investor Relations Iber
Slide 7: EBITDA evolution: G&EM Italy
Enel SpA 1Q 2013 Results Investor Relations EBITDA evolution: G&EM Italy (€mn) -32.1% 448 -65 -30 -49 304 Enel SpA – Investor Relations 1Q12 Generation Gas Other 1Q13 margin margin 6
Slide 8: EBITDA evolution: Market Italy
Enel SpA 1Q 2013 Results Investor Relations EBITDA evolution: Market Italy (€mn) +36.4% +23 240 +41 176 Enel SpA – Investor Relations 1Q12 Free Regulated 1Q13 market market 7
Slide 9: EBITDA evolution: Infrastructure & Networks Italy
Enel SpA 1Q 2013 Results Investor Relations EBITDA evolution: Infrastructure & Networks Italy (€mn) +7.2% +64 -33 +33 958 894 Enel SpA – Investor Relations 1Q12 Energy Connection Other 1Q13 margin fees 8
Slide 10: EBITDA evolution: International
Enel SpA 1Q 2013 Results Investor Relations EBITDA evolution: International (€mn) -8.0% 423 -75 +60 -18 -1 389 146 145 27 17 8 Enel SpA – Investor Relations Russia 77 France & Belgium SEE 233 Centrel 159 1Q12 Centrel1 SEE2 France Russia 1Q13 & Belgium3 1. Slovenské Elektrárne 2. Romanian, Bulgarian
Slide 11: EBITDA evolution: Endesa - Iberia
Enel SpA 1Q 2013 Results Investor Relations EBITDA evolution1: Endesa - Iberia2 (€mn) -12.6% 1,109 -44 -95 -1 969 Enel SpA – Investor Relations 1Q12 Liberalized Regulated Other 1Q13 business business 1. Enel’s GAAP figures 2. Including Ireland and Marocco 10
Slide 12: EBITDA evolution: Endesa - Latam
Enel SpA 1Q 2013 Results Investor Relations EBITDA evolution1: Endesa - Latam (€mn) -9.1% 787 +36 -30 -46 -32 715 Enel SpA – Investor Relations 1Q12 Generation Distribution Other Forex 1Q13 effect 1. Enel’s GAAP figures 11
Slide 13: EBITDA evolution: Enel Green Power
Enel SpA 1Q 2013 Results Investor Relations EBITDA evolution: Enel Green Power (€mn) +26.1% +3 -4 478 +29 +71 40 379 2 37 160 131 Enel SpA – Investor Relations Enel.si North America 280 209 Iberia and Latin America Italy and Europe -2 1Q12 Italy and Iberia and North Enel.si 1Q13 Europe Latin America
Slide 14: Net debt evolution
Enel SpA 1Q 2013 Results Investor Relations Net debt evolution (€mn) (1) -343 December 31, Cash flow Capex Net Taxes Dividends3 Extra- March 31, 2012 from financial ordinary 2013 operations charges2 activities +10(4) +9(4) -42,948 -43,291 Enel SpA – Investor Relations -134 -1,045 -697 -93 -110 +1,73
Slide 15: Annexes
Enel SpA Investor Relations Annexes
Slide 16: Production mix (TWh)
Enel SpA 1Q 2013 Results - Operational Annexes Investor Relations Production mix (TWh) -11.7% 19.7 17.4 2.7% 0.5% 10.1% 18.0% Group production mix 49.4% Italy -8.9% 54.4% 10.0% 8.0% 77.8 70.9 30.0% 16.9% 11.9% 9.7% 1Q12 1Q13 16.2% 15.7% -7.9% 33.3% Enel SpA – Investor Relations 28.0% 15.0% 14.4% 58.
Slide 17: 1Q2013 Group total net installed capacity
Enel SpA 1Q 2013 Results - Operational Annexes Investor Relations 1Q2013 Group total net installed capacity1: breakdown by source and location MW Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 13,680 1,584 - 6,746 5,916 12,026 39,952 Iberia 4,736 1,852 3,556 5,533 5,572(2) 2,882 24
Slide 18: 1Q2013 Group total net production
Enel SpA 1Q 2013 Results - Operational Annexes Investor Relations 1Q2013 Group total net production1: breakdown by source and location GWh Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 5,227 1,737 - 8,596 1,750 91 17,401 Iberia 2,759 1,363 6,785 4,235 1,543(2) 1,565 18,250 Centrel
Slide 19: 1Q2013 renewables net installed capacity
Enel SpA 1Q 2013 Results - Operational Annexes Investor Relations 1Q2013 renewables net installed capacity: breakdown by source and location MW Hydro Geothermal Wind Other TOTAL Italy & Europe 1,532 723 1,626 170 4,051 Iberia & Latam 789 - 2,022 87 2,898 Enel SpA – Investor Relations North America 3
Slide 20: 1Q2013 renewables net production
Enel SpA 1Q 2013 Results - Operational Annexes Investor Relations 1Q2013 renewables net production: breakdown by source and location GWh Hydro Geothermal Wind Other TOTAL Italy & 1,469 1,272 973 30 3,744 Europe Iberia & 929 - 1,453 98 2,480 Latam Enel SpA – Investor Relations North 265 79 754 58 1,1
Slide 21: Group EBITDA: regulated/unregulated activities
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Group EBITDA: regulated/unregulated activities 1Q 2013 EBITDA 4,077 €mn Stability and high visibility 48% 12% 40% Enel SpA – Investor Relations Forward sales and hedging procurement contracts to protect Unregulated margin Regulated EGP
Slide 22: Enel's debt maturity profile
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Enel’s debt maturity profile (€bn) Total liquidity available Debt maturity profile ~30.3 ~23.2 Short term Long term Long term committed ~14.1 credit lines1 ~8.9 ~8.3 Enel SpA – Investor Relations ~7.0 Cash and ~5.2 cash ~9.1 ~5.4 ~4.1 e
Slide 23: Enel's long-term debt maturity profile
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Enel’s long-term debt maturity profile (€mn) Endesa 30,262 Enel Group (excluding Endesa) 2,942 Bonds 1,856 Bank loans and others 1,058 27,320 8,886 7,050 1,153 Enel SpA – Investor Relations 4,148 5,184 1,267 2,914 660 704 7,733 1,401 5,
Slide 24: Enel Group liquidity analysis
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Enel Group liquidity analysis (€mn) Amount Outstanding Available Committed credit lines 22,154 5,822 16,332 (1) Cash and cash equivalents - (9,122) 9,122 Total 22,154 (3,300) 25,454 Uncommitted lines 1,024 64 960 Commercial paper 9,312
Slide 25: Debt structure
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Debt structure1 • Average debt maturity: 6 years and 9 months • Average cost of gross debt2: 5.0% • (Fixed+hedged)/Total gross long-term debt: 75% • (Fixed+hedged)/Total net debt: 95% • Rating: Standard&Poor’s = BBB+/A-2 Negative Outloo
Slide 26: Enel's group financial debt evolution
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Enel’s group financial debt evolution1 Enel Group (excluding Endesa) Endesa Group - Total €mn 12.31.2012 03.31.2013 12.31.2012 03.31.2013 03.31.2013 Bank loans – maturities > 12m 10,864 10,863 2,418 2,221 13,084 Bonds – maturities > 12m
Slide 27: Enel's group financial debt by subsidiary
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Enel’s group financial debt by subsidiary1 €mn Enel SpA Endesa EFI2 EIH2 Slovenské EP2 ED2 Other Total Bonds 17,035 4,756 20,831 297 - - - 218 43,137 Bank loans 393 2,514 3,730 - 1,122 546 3,177 2,404 13,886 Preference shares - - - - -
Slide 28: Enel's group financial debt
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Enel’s group financial debt Average cost of net debt Average cost of gross debt Average residual maturity (years:months) 6.1% 6.5% 6:11 5.9% 6:9 4.9% 4.8% 5.0% 6:7 2011 2012 1Q2013 2011 2012 1Q2013 2011 2012 1Q2013 Net financial debt (€
Slide 29: Enel's long-term debt maturity profile
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Enel’s long-term debt maturity profile (€mn) Enel Group (excluding Endesa) €mn <12m 2Q14-4Q14 2015 2016 2017 After 2017 Bank loans 509 1,296 694 1,169 3,968 3,736 Bonds 930 2,144 3,723 4,522 3,704 23,358 Other 74 48 63 92 61 226 Total 1
Slide 30: Enel Group liquidity analysis excluding Endesa
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Enel Group liquidity analysis excluding Endesa (€mn)1 Amount Outstanding Available Term loan (2017) 3,200 3,200 - 2009 credit facility for Endesa acquisition (2016) 617 617 - Revolving Credit Facility (2015)2 10,000 - 10,000 Other commi
Slide 31: Endesa liquidity analysis
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Endesa liquidity analysis (€mn)1 Amount Outstanding Available Total committed credit lines 3,786 261 3,525 Other short-term bank debt – uncommitted lines 833 1 832 Total credit lines 4,619 262 4,357 Commercial paper issued by the Endesa
Slide 32: EBITDA evolution - Other
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations EBITDA evolution - Other1 (€mn) -41.5% 41 -30 +13 24 Enel SpA – Investor Relations 1Q12 Services Other 1Q13 1. Including Services & Holding, Engineering & Innovation, upstream gas and nuclear activities 31
Slide 33: Capex by business area
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Capex by business area (€mn)1 -20.5% 1,314 75 275 1,045 9 261 356 323 Enel SpA – Investor Relations Other2 262 EGP Iberia & Latam 179 International I&N 309 223 Market 3 3 G&EM 34 47 1Q12 1Q13 1. Continuing operations, gross of connectio
Slide 34: Balance sheet
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Balance sheet €mn FY12 1Q13 % Net financial debt 42,948 43,291 +0.8 Shareholders’ equity 52,078 55,429 +6.4 Net capital employed 95,026 98,720 +3.9 Enel SpA – Investor Relations 33
Slide 35: Generation & Energy Management - Italy
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Generation & Energy Management - Italy €mn 1Q12 1Q13 % Revenues 6,035 6,500 +7.7 EBITDA 448 304 -32.1 EBIT 296 201 -32.1 Capex 34 47 +38.2 Enel SpA – Investor Relations Headcount 6,043 (1) 6,029 -0.2 1. As of December 31st, 2012 34
Slide 36: Market - Italy
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Market - Italy €mn 1Q12 1Q13 % Revenues 5,325 4,933 -7.4 EBITDA 176 240 +36.4 EBIT 94 81 -13.8 Capex 3 3 - Enel SpA – Investor Relations Headcount 3,674 (1) 3,689 +0.4 1. As of December 31st, 2012 35
Slide 37: Infrastructure & Network - Italy
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Infrastructure & Network - Italy €mn 1Q12 1Q13 % Revenues 1,806 1,853 +2.6 EBITDA 894 958 +7.2 EBIT 666 718 +7.8 Capex 309 223 -27.8 Enel SpA – Investor Relations Headcount 18,632 (1) 18,637 - 1. As of December 31st, 2012 36
Slide 38: International
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations International €mn 1Q12 1Q13 % Revenues 2,300 2,038 -11.4 EBITDA 423 389 -8.0 EBIT 335 255 -23.9 Capex 262 179 -31.7 Enel SpA – Investor Relations Headcount 12,652 (1) 12,646 - 1. As of December 31st, 2012 37
Slide 39: Iberia & Latam
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Iberia & Latam €mn 1Q12 1Q13 % Revenues 8,491 8,025 -5.5 EBITDA 1,896 1,684 -11.2 EBIT 1,187 956 -19.5 Capex 356 323 -9.3 Enel SpA – Investor Relations Headcount 22,807 (1) 22,844 +0.2 1. As of December 31st, 2012 38
Slide 40: Enel Green Power
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Enel Green Power €mn 1Q12 1Q13 % Revenues 605 718 +18.7 EBITDA 379 478 +26.1 EBIT 266 348 +30.8 Capex 275 261 -5.1 Enel SpA – Investor Relations Headcount 3,512 (1) 3,603 +2.6 1. As of December 31st, 2012 39
Slide 41: Other
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Other1 €mn 1Q12 1Q13 % Revenues2 461 431 -6.5 Holding 73 72 -1.4 Services 335 324 -3.3 Engineering & Innovation 83 64 -22.9 Upstream 1 0 - Enel SpA – Investor Relations EBITDA3 41 24 -41.5 Holding (7) 9 n.m. Services 54 24 -55.6 Enginee
Slide 42: Other - Continued
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations Other1 - Continued €mn 1Q12 1Q13 % EBIT2 15 (5) n.m. Holding (9) 7 n.m. Services & other 32 (2) n.m. Engineering & Innovation (3) (4) +33.3 Upstream (5) (6) +20.0 Capex 75 9 -88.0 Holding 0 0 - Enel SpA – Investor Relations Services & o
Slide 43: EBIT by business area
Enel SpA 1Q 2013 Results - Financial annexes Investor Relations EBIT by business area (€mn) -10.7% 2,859 15 266 2,554 348 +30.8% 1,187 Other1 EGP 956 -19.5% Iberia & Latam Enel SpA – Investor Relations International 335 255 -23.9% I&N Market 666 G&EM 718 +7.8% 94 81 -13.8% 296 -32.1% 201 -5 n.m. 1Q1
Slide 44: Disclaimer
Enel SpA Investor Relations Disclaimer This presentation contains certain forward-looking statements that reflect the Company’s management’s current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are
Slide 45: Contact us
Enel SpA Investor Relations Contact us Investor Relations Team (investor.relations@enel.com) • Luca Torchia (Head of IR) +39 06 8305 3437 • Pedro Cañamero (IR Coordination) +39 06 8305 5292 • Elisabetta Ghezzi (Outbound communication) +39 06 8305 2708 • Marco Donati (Inbound communication) +39 06 83