Slide 1: Endesa 9M 2013 results
06 | 11 | 2013 endesa 9M 2013 results
Slide 2: Business context in 9M 2013
consolidated results 9M 2013 Business context in 9M 2013 Demand Latin Spain: Spain(1) Endesa distribution area(2) +2.8%(3,4) America: (Not adjusted) demand +2.4%(3) better decrease in all Industry -2.8% +5.3% performance of categories of +4.6% +4.6% Endesa Services -5.1% +3.6% clients, distribution
Slide 3: Operating results supported by one-off gain in Latam
consolidated results 9M 2013 Operating results supported by one-off gain in Latam (Argentina Dx) that do not offset negative regulatory effects in Spain €M 9M 2013 9M 2012 Change Revenues 23,485 25,463 -8% Gross margin 7,914 8,182 -3% EBITDA 5,251 5,457 -4% Spain&Portugal 2,697 3,073 -12% Latin Amer
Slide 4: Spain: regulation update (I)
consolidated results 9M 2013 Spain: regulation update (I) 3Q LRT: +1.2% increase 3Q Last • +3% increase in energy component following CESUR auction of June 25th. Resort Tariff • Freeze in TPA +6.8% average TPA increase as established in Ministerial Order IET 1491/2013: TPA energy and capacity co
Slide 5: Spain: regulation update (II)
consolidated results 9M 2013 Spain: regulation update (II) Law 15/2013 (€2.2 bn Ministry authorized to contribute up to €2.2 bn extraordinary State contribution) Timing and amount to be decided by Gov. Commission for Economic Affairs Environmental fiscal measures Retroactivity does not apply (
Slide 6: Spain: regulation update (III)
consolidated results 9M 2013 Spain: regulation update (III) €4.1 bn of deficit rights transferred to FADE by utilities €4.0 bn increase of State guarantee FADE issuances: 2012 Ex-post tariff deficit • September 24th (1): €2.0 bn (€0.9 bn for Endesa) securitization • October 9th (2): €1.0 bn (€
Slide 7: Latam: regulation update
consolidated results 9M 2013 Latam: regulation update 20-25 Non-conventional renewable energy (NCRE) Law: • 20% of renewables by the year 2025 targets to be gradually applied for new supply contracts signed from July 2013 • Government reserves the right to organize auctions in case target is not m
Slide 8: Sound financial position
consolidated results 9M 2013 Sound financial position Net debt evolution in 9M 2013 (€M) 8,778 2,347 402 1,117(2) 1,533 399 445 152 7,051(3) 1.0x Enersis 4,144 Financing of new tariff deficit (1): -€2,213 M Pending 2,986 0.9x 5,216 regulatory Mainland tariff deficit securitization: €1,811 M Includes
Slide 9: Spain & Portugal 9M 2013
spain&portugal 9M 2013
Slide 10: Highlights in 9M 2013
spain&portugal 9M 2013 Highlights in 9M 2013 Margin negatively affected by many regulatory measures (RDL 13/2012, RDL 20/2012, Law 15/2012, RDL 2/2013 and RDL 9/2013) Output generation (-12%)(1): demand decline jointly with lower thermal gap. 65% of total output from nuclear & hydro (52% in 9M 12) S
Slide 11: Results negatively affected by regulatory measures
spain&portugal 9M 2013 Results negatively affected by regulatory measures €M 9M 2013 9M 2012 Change Revenues 16,217 17,442 -7% Gross margin 4,297 4,783 -10% EBITDA 2,697 3,073 -12% EBIT 1,451 1,836 -21% Net finance expenses(1) 89 224 -60% Net attributable income 1,036 1,269 -18% Iberia: regulatory m
Slide 12: Regulatory measures impacting liberalized and regulated business margins
spain&portugal 9M 2013 Regulatory measures impacting both liberalized and regulated business margins 4,783 €M 4,297 -11% -9% -10% 9M 2012 Liberalized business Regulated business 9M 2013 Law 15/2012 and RDL 9/2013 (capacity payments) Law 15/2012 and RDL 20/2012 in non-mainland generation National coa
Slide 13: Mainland output and energy management optimization
spain&portugal 9M 2013 Mainland output and energy management optimization Decrease in mainland output(1) 9M 2013 energy management Gross electricity Gross electricity sources sales GWh 48,732 82 TWh 82 TWh 3,109 42,707 847 CCGT LRT Auctions(2) 18 18 LRT(2) 12,269 -12% 9,285 Imported coal 5 Pool sale
Slide 14: Latin America 9M 2013
latin america 9M 2013
Slide 15: Highlights in 9M 2013
latin america 9M 2013 Highlights in 9M 2013 2.8%1 growth in LatAm Dx demand: Brazil and Chile outperform 5.7% drop in Gx output: lower hydro generation in most of the countries not compensated by increase in thermal output Positive performance of Chilean generation business despite persistent drough
Slide 16: Latin America 9M 2013 results
latin america 9M 2013 EBITDA positively affected by operative and non-operative drivers that more than offset FX €M 9M 2013 9M 2012 Change Revenues 7,268 8,021 -9% Gross margin 3,617 3,399 +6% EBITDA 2,554 2,384 +7% EBIT(1) 1,941 1,812 +7% Net finance expenses(2) 197 372 -47% Net income 1,283 918 +4
Slide 17: Chile: better results due to new installed capacity
latin america 9M 2013 Chile: better results due to new installed capacity, LNG supply flexibility and demand increase Generation output Distribution sales(1) GWh -4% Poor hydro conditions partially +5% compensated by higher thermal 14.610 output (Bocamina II) 15.296 9.744 Demand increase support
Slide 18: Brazil: EBITDA impacted by drought
latin america 9M 2013 Brazil: EBITDA impacted by drought Generation output Distribution sales(1) GWh +5% Higher thermal dispatch from Fortaleza more than offset worsening hydro conditions due to 13.824 drought 13.212 +2% Higher Dx volumes due to weather 3.544 3.631 conditions 9M 2012 9M 1 2013 9
Slide 19: Colombia: well-balanced asset portfolio
latin america 9M 2013 Colombia: well-balanced asset portfolio Generation output Distribution sales(1) GWh -7% Decrease in hydro generation not fully compensated by thermal +1% dispatch 10.249 9.573 Slight demand increase, lower than 6.157 in the country that enjoys higher 6.100 growth rates out
Slide 20: Peru: slight decrease in results
latin america 9M 2013 Peru: slight decrease in results Generation output Distribution sales(1) GWh -10% +2% Output decrease due to lower thermal dispatch, planned and not planned outages 6.981 6.290 4.716 4.823 Demand affected by slowdown in manufacture activity in Lima area 9M 2012 9M 1 2013 9M
Slide 21: Argentina: EBITDA impacted by MMC recognition in Dx
latin america 9M 2013 Argentina: EBITDA impacted by MMC recognition in Dx Generation output Distribution sales(1) GWh -6% 0% Generation decrease due to planned outages in thermal plants 11.715 10.957 11.053 and lower hydro dispatch due to 11.104 poor hydrology Flat demand 9M 2012 9M 1 2013 9M 20
Slide 22: Final remarks 9M 2013
final remarks 9M 2013
Slide 23: Final remarks
final remarks 9M 2013 Final remarks Managerial actions in place to counter balance the difficult regulatory environment Spain & Portugal CAPEX & OPEX plans to be further reviewed Despite drought and significant FX negative impact, overall good operational performance Latin America Setting the founda
Slide 24: Appendices 9M 2013
appendices 9M 2013
Slide 25: Installed capacity and output
appendices 9M 2013 Installed capacity and output(1) Latin MW at 30/09/13 Spain& Portugal America Total Total 23,300 16,354 39,654 Hydro 4,755 8,681 13,436 Nuclear 3,686 - 3,686 Installed Coal 5,804 872 6,676 capacity Natural gas 5,798 3,963 9,762 Oil-gas 3,256 2,760 6,016 CHP/Renewables na 78 78 Lat
Slide 26: Latin America: generation and distribution figures
appendices 9M 2013 Latin America: generation and distribution figures Generation Output Distribution Sales(1) GWh GWh 47,785 +2.8% 45,061 45,652 44,397 11,715 -5.7% 10,957 -6% Argentina 11,104 0.5% 11,053 3,544 3,631 +2% Brazil 13,824 +5% 13,212 15,296 14,610 -4% Chile 9,316 9,744 +5% 10,249 Colombi
Slide 27: Latin America: EBITDA breakdown by country and business nature
appendices 9M 2013 Latin America: Ebitda break down by country and business nature Ebitda Generation(1) Ebitda Distribution €M €M 1,252 1,288 +7% +10% 1,174 54 +35% Argentina 1,169 40 186 164 -10% 183 Brazil 507 390 +27% 438 -14% 307 Chile 209 203 -3% 457 466 +2% Colombia 377 354 -6% 187 178 -5% Per
Slide 28: Endesa (excl. Enersis): financial debt maturity calendar
appendices 9M 2013 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 30 September 2013: €4,395 M(1) Bonds Bank debt and others ECPs and domestic commercial paper (2) Endesa's 1,633 1,451 liquidity excl. Enersis covers 37 1,262 1,267 642 months of 432
Slide 29: Enersis: financial debt maturity calendar
appendices 9M 2013 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 30 September 2013: €4,819 M(1) Bonds Bank debt and others 2,634 402 Enersis has sufficient liquidity to 900 2,232 cover 409 461 521 39 months 303 118 of debt 128 226 491 403 maturities 77 333 Sep-
Slide 30: Financial policy and net debt structure
appendices 9M 2013 Financial policy and net debt structure Structure of Endesa's net debt ex-Enersis Enersis net debt structure €M €M 4,065 4,065 2,986 2,986 Floating 34% Other 52% Floating 80% Euro 100% Fixed 66% US$ 48% Fixed 20% By interest rate By currency By interest rate By currency Average co
Slide 31: Well on track on forward sales strategy
appendices 9M 2013 Well on track on forward sales strategy Spain & Portugal Latin America (% estimated mainland output hedged) (% estimated output hedged) 100% 75-80% Contracting level in 70-75% Latin America that optimizes margin and risk exposure 55% 2013 2014 2013 2014 32% of the generation sold
Slide 32: Disclaimer
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
Slide 33: Consolidated results 9M 2013
consolidated results 9M 2013 33