Slide 1: Endesa 1H 2015 Results
Endesa 1H 2015 Results Madrid, 28 July 2015
Slide 2: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 2 1H 2015 Results Madrid, 28 July 2015
Slide 3: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 3 1H 2015 Results Madrid, 28 July 2015
Slide 4: Highlights
Highlights 13% production increase due to higher thermal output (+46%) (1) Positive EBITDA growth (+16%) and Net income evolution (+17%) Regulated business positive evolution driven by non-mainland generation Liberalized business margin outperforming expectations Decrease in both reported fixed cost
Slide 5: Key financial figures
Key financial figures €M 1H 2015 1H 2014 Change EBITDA 1,934 1,663 +16% Net attributable 870 743 +17% income €M 1H 2015 FY 2014 Change Net debt 4,992 5,420 -8% Strong cash flow generation 1H 2015 Results 5 Madrid, 28 July 2015
Slide 6: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 6 1H 2015 Results Madrid, 28 July 2015
Slide 7: Market context in 1H2015
Market context in 1H2015 Demand Electricity wholesale prices Weighted average pool prices Spain(3) (€/MWh) Spain(1) Endesa distribution area(2) (Not adjusted) +3.1% +52% 52.3 48 Industry +2.1% +1.9% +1.1% Services +2.3% 32 +0.5% Residential +4.6% 1H 2014 1H 2015 Bal 2015 Adjusted for weather and wor
Slide 8: Regulatory update
Regulatory update Latest regulatory news (I) New draft Ministerial Order with standard unitary values for investment and O&M Distribution Allegation period still open From first assessment neutral impact Domestic coal: 3rd Draft Ministerial Order to support IED investments sent to CNMC P
Slide 9: Regulatory update
Regulatory update Latest regulatory news (II) and CNMC settlements Decrease in customers’ capacity payments: €250 M annual reduction of system revenues Equivalent to 2.1% average reduction in the electricity bill in 2015 … RDL 9/2015 …and 0.9% average reduction on annual basis in 2016 No i
Slide 10: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 10 1H 2015 Results Madrid, 28 July 2015
Slide 11: Financial results
Financial results €M • P&L positive evolution: (+) Other Operating Results (CO2 transaction), €162 M provision booked in 1H 2014 in non-mainland Gx, fixed costs containment and lower D&A (-) Normalization of weather conditions, higher financial expenses • Strong increase of Net attributable Inco
Slide 12: Net debt analysis
Net debt analysis Net debt evolution Net debt (1) / 1.8x 1.5x(2) EBITDA ratio €M 5,420 Regulatory 4,992 working capital 1,173 21 Regulatory 1,194 402 672 working capital 385 • Year 2014: +€21 M cashed in from settlements 10- 4,611 4,992 12/2014 (interests from 2013 tariff deficit) 4,226 4,226 FY 2 0
Slide 13: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 13 1H 2015 Results Madrid, 28 July 2015
Slide 14: 1H 2015 EBITDA breakdown
1H 2015 EBITDA breakdown 1H 2014 1H 2015 %(1) % €M Change (%) €M Generation & +8% Generation & 49% 834 902 47% Supply Supply Distribution 51% 867 +1% 875 45% Distribution Non-mainland 157 8% generation Non-mainland 1 generation -38 1 TOTAL(2) 1,663 +16% 1,934 TOTAL(2) 14 1H 2015 Results (1) Percenta
Slide 15: Regulated business
Regulated business Gross margin evolution of non-mainland Gx and Dx +17% 1,512 €M 18 Non- 1,289 205 306 mainland Non- generation 101 mainland generation 1,494 1,289 1,206 Distribution 1,188 Distribution Margen 1H 2014 Non-mainland Dx Margen 1H 2015 1H 2014 Non-mainland Gx Distribution 1H 2015 Gross
Slide 16: Liberalized business
Liberalized business Gross margin evolution +3% €M 1,356 40 1,396 1H 2014 1H 2015 Gross margin(1) Gross margin(1) Higher fuel costs (higher thermal gap) Higher underlying selling price Gas Business CO2 swap transaction Higher Law 15/2012 taxes • Strong integrated position results driving l
Slide 17: Fixed costs evolution
Fixed costs evolution -1% €M -4% 982 997 974 15 (1) 954 (2) 20 Personnel 439 474 -8% Costs 436 458 1050 1004 -2% O&M Costs 611 582 568 566 Capitalized costs -68 -59 -50 -50 1H 2014 1H 2014 1H 2015 1H 2015 Reported Adjusted Adjusted Reported • Flat reported fixed costs • Adjusted by non-recurrent ite
Slide 18: Liberalized business
Liberalized business Energy management Mainland output 1H 2015 energy management Electricity sources Electricity sales GWh 49.5 TWh 49.5 TWh +13% 29,471 26,196 1,457 CCGT 605 SCVP purchases(1) 9 9 SCVP sales(1) 7,064 Imported coal 5,123 Energy purchases Unit purchase cost 11 2,431 3,357 Domestic coa
Slide 19: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 19 1H 2015 Results Madrid, 28 July 2015
Slide 20: Final remarks
Final remarks 1H 2015 Results 20 Madrid, 28 July 2015
Slide 21: Appendix
Appendix Endesa 1H 2015 Results 1H 2015 Results Madrid, 28 July 2015
Slide 22: Installed capacity and output
Installed capacity and output(1) GW at 30/06/15 GWh 1H 2015 (and chg. vs. 30/06/14) Installed capacity(2) (and chg. vs. 1H 2014) Output(3) Total 21.2 -2% 35,332 +10.5% Hydro 4.7 +1% 4,680 -14% Nuclear 3.3 0% 12,913 +3% Coal 5.3 0% 11,331 +31% Natural gas 5.4 0% 3,334 +41% Oil-gas 2.4 -17% 3,075 +4%
Slide 23: Endesa: financial debt maturity calendar
Endesa: financial debt maturity calendar Gross balance of maturities outstanding at 30 June 2015: €5,937 M(1) Bonds Bank debt and others ECPs and domestic commercial paper (2) 3,602 1,046 3,570 Endesa's liquidity covers 35 569 months of 1,046 debt 477 261 maturities 80 118 166 82 50 35 77 15 15 36 1
Slide 24: Gross debt structure
Gross debt structure as of June 30th 2015 Structure of Endesa's gross debt €M 5,658 5,658 Floating 37% Euro 100% Fixed 63% US$ 40% By interest rate By currency Average cost of debt 3.0% 1H 2015 Results 24 Madrid, 28 July 2015
Slide 25: This document is the property of ENDESA
“This document is the property of ENDESA and therefore must not be disseminated or published without ENDESA's prior written consent. The content of this document is provided for information purposes only and therefore has no contractual substance and should not be used as part of or construed as a l
Slide 26: Disclaimer
Disclaimer This document contains certain "forward-looking" statements regarding anticipated financial and operating results and statistics and other future events. These statements are not guarantees of future performance and they are subject to material risks, uncertainties, changes and other fact
Slide 27: Endesa Mobile
Endesa Mobile Get full information of the company on Endesa Mobile, the Endesa App for iPhone, iPad and Android devices. Download from Download from App Store Google Play 1H 2015 Results 27 Madrid, 28 July 2015