Enel SpA · MIL:ENEL
Enel SpA — 9M2012 Earnings Presentation
46 slides from Enel SpA's earnings presentation, Nov 13, 2012
Slide 1: 9M2012 Results
Enel SpA Investor Relations 9M2012 Results November 13, 2012
Slide 2: Agenda
Enel SpA Investor Relations Agenda • Opening remarks • 9M2012 Results • Annexes 1
Slide 3: Electricity demand vs. plan assumptions
Enel SpA Opening remarks Investor Relations Electricity demand1 vs. plan assumptions Electricity demand 9M2012 Electricity demand 2011-2016 CAGR 9M12 actual -2.3% Italy +1.2% Italy FY12 budget +0.4% 9M12 actual -0.7% Spain2 +1.5% Spain2 FY12 budget -0.8% 9M12 actual +1.5% Russia +1.3% Russia FY12 bu
Slide 4: Agenda
Enel SpA Investor Relations Agenda • Opening remarks • 9M2012 Results • Annexes 3
Slide 5: Financial highlights: consolidated
Enel SpA 9M2012 results Investor Relations Financial highlights: consolidated €mn 9M11 9M12 % Revenues 57,496 61,899 +7.7 EBITDA 13,284 12,761 -3.9 - recurring 1,2 12,867 12,761 -0.8 EBIT 9,014 8,200 -9.0 Group net income 3,492 2,808 -19.6 2,627 1,2 Group net ordinary income 3,234 -18.8 (3),(4) (4)
Slide 6: From EBIT to Net Income
Enel SpA 9M2012 results Investor Relations From EBIT to Net Income €mn 9M11 9M12 % EBIT 9,014 8,200 -9.0 Net financial charges (2,338) (2,326) -0.5 Interest charges 2,053 2,148 +4.6 Other 285 178 -37.5 Net income from equity investments 78 65 -16.7 using equity method EBT 6,754 5,939 -12.1 Income ta
Slide 7: Focus on forward electricity sales
Enel SpA 9M2012 results Investor Relations Focus on forward electricity sales Level of total production hedged (%) Italy Spain 100 100 100 100 ~5 ~ 20 ~ 55 ~ 95(1) ~ 80(1) ~ 45 2012 2013 2012 2013(2) Latam Slovakia 100 100 100 100 ~ 20 ~ 15 ~ 30 ~80 ~ 70 ~ 85 2012 2013 2012 2013 Unhedged Hedged 1. I
Slide 8: Group EBITDA evolution (€mn)
Enel SpA 9M2012 results Investor Relations Group EBITDA evolution (€mn) -3.9% 13,284 -631 105 +48 +206 -96 +27 -59 -18 12,761 1,183 87 1,124 5,562 5,589 Other1 1,200 EGP Iberia & Latam 1,104 International I&N 3,129 Market 3,335 G&EM 446 494 1,659 1,028 9M11 G&EM Market I&N Inter- Iberia & EGP Other
Slide 9: EBITDA evolution: G&EM Italy (€mn)
Enel SpA 9M2012 results Investor Relations EBITDA evolution: G&EM Italy (€mn) -38.0% 1,659 -162 +56 -265 -260 1,028 9M11 Generation Trading Perimeter Other 9M12 margin margin and revaluation effects 8
Slide 10: EBITDA evolution: Market Italy (€mn)
Enel SpA 9M2012 results Investor Relations EBITDA evolution: Market Italy (€mn) +10.8% +16 494 +32 446 9M11 Free Regulated 9M12 market market 9
Slide 11: EBITDA evolution: Infrastructure & Networks Italy (€mn)
Enel SpA 9M2012 results Investor Relations EBITDA evolution: Infrastructure & Networks Italy (€mn) +6.6% -79 +201 3,335 +84 3,129 9M11 Energy Connection Other 9M12 margin fees 10
Slide 12: EBITDA evolution: International (€mn)
Enel SpA 9M2012 results Investor Relations EBITDA evolution: International (€mn) -8.0% 1,200 -12 -90 -21 +27 1,104 368 395 33 12 259 169 Russia France & Belgium 540 SEE 528 Centrel 9M11 Centrel1 SEE2 France Russia 9M12 & Belgium3 1. Slovenské Elektrárne 2. Romanian, Bulgarian and Greek operations 11
Slide 13: EBITDA evolution: Endesa - Iberia (€mn)
Enel SpA 9M2012 results Investor Relations EBITDA evolution1: Endesa - Iberia2 (€mn) +0.7% +156 -202 3,214 +69 3,237 9M11 Liberalized Regulated Other 9M12 business business 1. Enel’s GAAP figures 2. Including Ireland and Marocco 12
Slide 14: EBITDA evolution: Endesa - Latam (€mn)
Enel SpA 9M2012 results Investor Relations EBITDA evolution1: Endesa - Latam (€mn) +0.2% 2,348 -176 +122 -59 +117 2,352 9M11 Generation Distribution Other Forex 9M12 effect 1. Enel’s GAAP figures 13
Slide 15: EBITDA evolution: Enel Green Power (€mn)
Enel SpA 9M2012 results Investor Relations EBITDA evolution: Enel Green Power (€mn) -5.0% +12.2% 1,183 -181 +61 +21 -2 1,124 181 1,002 +42 7 90 9 9 69 69 356 295 295 Enel.si North America 629 629 Iberia and Latin America 671 Italy and Europe 9M11 Other 9M11 Italy and Iberia and North Enel.si 9M12 ad
Slide 16: Net debt evolution (€mn)
Enel SpA 9M2012 results Investor Relations Net debt evolution (€mn) -1,827 (1) December 31, Cash-flow Capex Net financial Taxes Dividends3 Extra- September 30, 2011 from operations charges2 ordinary 2012 activities +1(4) +1(4) -44,629 -46,456 -4,451 -1,993 +8,409 -1,679 -2,083 -30 1. Net debt change
Slide 17: Agenda
Enel SpA Investor Relations Agenda • Opening remarks • 9M2012 Results • Annexes 16
Slide 18: Production mix (TWh)
Enel SpA 9M2012 results - Financial annexes Investor Relations Production mix (TWh) -4.3% 60.0 57.4 1.4% 2.1% 22.3% 16.1% Group production mix Italy 38.6% 48.7% +2.6% 7.6% 8.2% 219.5 225.1 30.1% 24.9% 13.1% 12.0% 9M11 9M12 16.6% 14.5% +5.1% 28.8% 31.3% 13.3% 14.1% 159.5 167.7 4.1% 4.9% 17.5% 15.4% 2
Slide 19: 9M2012 Group total net installed capacity by source and location
Enel SpA 9M2012 results - Financial annexes Investor Relations 9M2012 Group total net installed capacity1: breakdown by source and location MW Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 13,652 1,473 - 6,746 5,916 12,026 39,813 Iberia 4,729 1,794 3,535 5,533 4,682(2) 4,780(3) 25
Slide 20: 9M2012 Group total net production by source and location
Enel SpA 9M2012 results - Financial annexes Investor Relations 9M2012 Group total net production1: breakdown by source and location GWh Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 14,279 4,713 - 27,975 9,218 1,184 57,369 Iberia 4,273 3,075 21,025 23,635 4,551(2) 7,395(3) 63,954
Slide 21: 9M2012 renewables net installed capacity by source and location
Enel SpA 9M2012 results - Financial annexes Investor Relations 9M2012 renewables net installed capacity: breakdown by source and location MW Hydro Geothermal Wind Other TOTAL Italy & Europe 1,532 722 1,323 113 3,690 Iberia & Latam 789 - 1,772 120 2,681 North America 313 47 830 48 1,238 TOTAL 2,634 7
Slide 22: 9M2012 renewables net production by source and location
Enel SpA 9M2012 results - Financial annexes Investor Relations 9M2012 renewables net production: breakdown by source and location GWh Hydro Geothermal Wind Other TOTAL Italy & 3,783 3,927 1,705 91 9,506 Europe Iberia & 2,736 - 2,838 355 5,929 Latam North 699 182 1,740 162 2,783 America TOTAL 7,218 4
Slide 23: Group EBITDA: regulated/unregulated activities
Enel SpA 9M2012 results - Financial annexes Investor Relations Group EBITDA: regulated/unregulated activities 9M2012 EBITDA 12,761 €mn Stability and high visibility 9% 52% 39% Forward sales and hedging procurement contracts to protect Unregulated margin Regulated EGP 22
Slide 24: Enel's long-term debt maturity profile (€mn)
Enel SpA 9M2012 results - Financial annexes Investor Relations Enel’s long-term debt maturity profile (€mn) Endesa Enel Group (excluding Endesa) 35,797 3,429 Bonds 3,067 Bank loans and others 1,151 9,009 32,368 3,226 6,015 5,115 5,783 4,218 1,152 713 2,029 460 793 4,863 2,189 233 4,402 227 <12m 4Q13
Slide 25: Enel's debt maturity profile (€bn)
Enel SpA 9M2012 results - Financial annexes Investor Relations Enel’s debt maturity profile (€bn) Total liquidity available Debt maturity profile ~38.2(5) ~21.4 Bonds1 ~2.4 Long term committed ~11.9 credit lines2 ~9.4 ~9.0 ~5.2 (4) ~6.0 ~5.1 Cash and ~7.1 cash equivalents3 Short term ~4.2 ~0.5 Long
Slide 26: Enel Group liquidity analysis (€mn)
Enel SpA 9M2012 results - Financial annexes Investor Relations Enel Group liquidity analysis (€mn) Amount Outstanding Available Committed credit lines 23,718 9,285 14,433(1) Cash and cash equivalents - (7,143) 7,143 Total 23,718 2,142 21,576 Uncommitted lines 1,646 34 1,612 Commercial paper 9,309 4,
Slide 27: Debt structure
Enel SpA 9M2012 results - Financial annexes Investor Relations Debt structure1 • Average debt maturity: 6 years and 9 months • Average cost of gross debt2: 4.9% • (Fixed+hedged)/Total gross long-term debt: 70% • (Fixed+hedged)/Total net debt: 84% • Rating: Standard&Poor’s = BBB+/A-2 Negative Outlook
Slide 28: Enel's group financial debt evolution
Enel SpA 9M2012 results - Financial annexes Investor Relations Enel’s group financial debt evolution1 Enel Group (excluding Endesa) Endesa Group - Total €mn 12.31.2011 09.30.2012 12.31.2011 09.30.2012 09.30.2012 Bank loans – maturities > 12m 8,333 11,918 1,585 3,970 15,888 Bonds – maturities > 12m 3
Slide 29: Enel's group financial debt by subsidiary
Enel SpA 9M2012 results - Financial annexes Investor Relations Enel’s group financial debt by subsidiary1 €mn Enel SpA Endesa EFI2 EIH2 Slovenské EP2 ED2 Other Total Bonds 17,209 5,455 19,193 298 - - - 224 42,379 Bank loans 1,314 4,294 4,247 - 900 582 3,186 2,106 16,629 Preference shares - 180 - - -
Slide 30: Enel's group financial debt
Enel SpA 9M2012 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) 5.9% 6.1% 6:9 5.5% 4.9% 4.9% 6:8 4.6% 6:7 2010 2011 9M12 2010 2011 9M12 2010 2011 9M12 Net financial debt (€bn) Fixe
Slide 31: Enel's long-term debt maturity profile (€mn)
Enel SpA 9M2012 results - Financial annexes Investor Relations Enel’s long-term debt maturity profile (€mn) Enel Group (excluding Endesa) €mn <12m 4Q13 2014 2015 2016 After 2016 Bank loans 417 146 2,678 617 1,194 7,283 Bonds 1,699 43 2,133 3,722 4,515 24,812 Other 73 38 52 63 74 273 Total 2,189 227
Slide 32: Enel Group liquidity analysis excluding Endesa (€mn)
Enel SpA 9M2012 results - Financial annexes Investor Relations Enel Group liquidity analysis excluding Endesa (€mn)1 Amount Outstanding Available 2009 credit facility for Endesa acquisition (2014) 1,359 1,359 - 2009 credit facility for Endesa acquisition (2016) 617 617 - Other committed credit lines
Slide 33: Endesa liquidity analysis (€mn)
Enel SpA 9M2012 results - Financial annexes Investor Relations Endesa liquidity analysis (€mn)1 Amount Outstanding Available Total committed credit lines 3,964 2,399 1,565 Other short-term bank debt – uncommitted lines 1,450 4 1,446 Total credit lines 5,414 2,403 3,011 Commercial paper issued by the
Slide 34: Capex by business area (€mn)
Enel SpA 9M2012 results - Financial annexes Investor Relations Capex by business area (€mn)1 -6.2% 4,665 30 4,377 101 1,033 714 1,425 1,472 Other2 979 794 EGP Iberia & Latam International I&N 934 1,011 Market 40 53 G&EM 224 232 9M11 9M12 1. Continuing operations, gross of connection fees 2. Includin
Slide 35: Balance sheet
Enel SpA 9M2012 results - Financial annexes Investor Relations Balance sheet €mn FY11 9M12 % Net financial debt 44,629 46,456 +4.1 Shareholders’ equity 54,440 55,853 +2.6 Net capital employed 99,069 102,309 +3.3 34
Slide 36: Generation & Energy Management - Italy
Enel SpA 9M2012 results - Financial annexes Investor Relations Generation & Energy Management - Italy €mn 9M11 9M12 % Revenues 15,345 17,222 +12.2 EBITDA 1,659 1,028 -38.0 EBIT 1,219 561 -54.0 Capex 224 232 +3.6 (1) Headcount 6,277 6,177 -1.6 1. As of December 31st, 2011 35
Slide 37: Market - Italy
Enel SpA 9M2012 results - Financial annexes Investor Relations Market - Italy €mn 9M11 9M12 % Revenues 12,932 13,860 +7.2 EBITDA 446 494 +10.8 EBIT 220 161 -26.8 Capex 40 53 +32.5 (1) Headcount 3,745 3,718 -0.7 1. As of December 31st, 2011 36
Slide 38: Infrastructure & Network - Italy
Enel SpA 9M2012 results - Financial annexes Investor Relations Infrastructure & Network - Italy €mn 9M11 9M12 % Revenues 5,415 6,082 +12.3 EBITDA 3,129 3,335 +6.6 EBIT 2,442 2,556 +4.7 Capex 934 1,011 +8.2 (1) Headcount 18,951 18,819 -0.7 1. As of December 31st, 2011 37
Slide 39: International
Enel SpA 9M2012 results - Financial annexes Investor Relations International €mn 9M11 9M12 % Revenues 5,650 6,324 +11.9 EBITDA 1,200 1,104 -8.0 EBIT 771 825 +7.0 Capex 979 794 -18.9 (1) Headcount 13,779 13,199 -4.2 1. As of December 31st, 2011 38
Slide 40: Iberia & Latam
Enel SpA 9M2012 results - Financial annexes Investor Relations Iberia & Latam €mn 9M11 9M12 % Revenues 24,029 25,140 +4.6 EBITDA 5,562 5,589 +0.5 EBIT 3,450 3,334 -3.4 Capex 1,425 1,472 +3.3 (1) Headcount 22,877 23,087 +0.9 1. As of December 31st, 2011 39
Slide 41: Enel Green Power
Enel SpA 9M2012 results - Financial annexes Investor Relations Enel Green Power €mn 9M11 9M12 % Revenues 1,859 1,924 +3.5 EBITDA 1,183 1,124 -5.0 EBIT 889 764 -14.1 Capex 1,033 714 -30.9 (1) Headcount 3,229 3,432 +6.3 1. As of December 31st, 2011 40
Slide 42: Other
Enel SpA 9M2012 results - Financial annexes Investor Relations Other1 €mn 9M11 9M12 % Revenues2 1,577 1,380 -12.5 Holding 514 232 -54.9 Services 878 1,013 +15.4 Engineering & Innovation 292 239 -18.2 Upstream 1 1 - EBITDA3 105 87 -17.1 Holding (42) (40) -4.8 Services 160 143 -10.6 Engineering & Inno
Slide 43: Other - Continued
Enel SpA 9M2012 results - Financial annexes Investor Relations Other1 - Continued €mn 9M11 9M12 % EBIT2 23 (1) n.m. Holding (49) (47) -4.1 Services & other 88 65 -26.1 Engineering & Innovation (3) (1) -66.7 Upstream (13) (17) +30.8 Capex 30 101 >100 Holding 3 2 -33.3 Services & other 25 32 +28.0 Eng
Slide 44: EBIT by business area (€mn)
Enel SpA 9M2012 results - Financial annexes Investor Relations EBIT by business area (€mn) -9.0% 9,014 23 889 8,200 764 -14.1% Other1 3,450 EGP -3.4% 3,334 Iberia & Latam International 771 825 +7.0% I&N Market 2,442 G&EM 2,556 +4.7% 220 161 -26.8% 1,219 -54.0% 561 -1 n.m. 9M11 9M12 1. Including Serv
Slide 45: Disclaimer
Enel SpA Investor Relations Disclaimer This presentation may contain certain statements that are neither reported financial results nor other historical information (“forward-looking statements”). These forward-looking statements are based on Enel S.p.A.’s current expectations and projections about
Slide 46: 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 (Equity IR) +39 06 8305 5292 • Elisabetta Ghezzi (Fixed income IR) +39 06 8305 2708 • Matteo Cavadini (Staff) +39 06 8305 2326 • Marco Donati (St