Endesa S.a. · BME:ELE
Endesa — H1 2014 Earnings Presentation
33 slides from Endesa's earnings presentation, Jul 30, 2014
Slide 1: Endesa 1H 2014 results
30 | 07 | 2014 endesa 1H 2014 results
Slide 2: Business context in 1H 2014
consolidated results 1H 2014 Business context in 1H 2014 Demand Spain(1) Endesa distribution area(2) +4.4%(3,4) (Not adjusted) +4.7%(3) Latin Spain: shift in +2.4% +0.1% +0.1% Industry +6.9% America: demand trend Services -1.2% healthy growth supported by +5.4% +5.4% +4.3% in both Endesa industrial
Slide 3: Consolidated results 1H 2014
consolidated results 1H 2014 Results in Spain negatively impacted by new retroactive regulatory measures in non-mainland generation. Lower impact from MMC recognition in Argentina YoY & other adverse external circumstances in Latam €M 1H 2014 1H 2013(1) Change Like-for-like(2) Revenues 14,711 15,770
Slide 4: Spain: regulation update (I)
consolidated results 1H 2014 Spain: regulation update (I) Main new developments and pending chapters of the electricity sector reform Resolution on the energy price for Endesa is already reimbursing to SCVP customers the extra-amounts collected during 1&2Q SCVP tariff 1Q and 2Q above the price bas
Slide 5: Spain: regulation update (II)
consolidated results 1H 2014 Spain: regulation update (II) New Royal Decree draft on non-mainland generation One-off retroactive effects Economic impact of 1st draft RD -€97 M booked in 2013 measures retroactive 2nd draft RD -€259 M since 1.1.12 (at gross margin Additional impact in 1H’14 -€16
Slide 6: Spain: regulation update (III)
consolidated results 1H 2014 Spain: regulation update (III) Other relevant events during the period Nuclenor BoD decided to submit the application to renew Garoña’s operating Garoña nuclear power plant license Request made to extend operating life until March 2nd, 2031 (60 years of useful life)
Slide 7: LatAm: regulation update
consolidated results 1H 2014 LatAm: regulation update • The Government published guidelines for its Energy Agenda Chile • HydroAysen: Ministers Committee revoked previously approved Environmental Impact Study • Bocamina II: final Supreme Court decision expected Dx: WACC initial proposal for 4th
Slide 8: Sound financial position
consolidated results 1H 2014 Sound financial position Net debt evolution in 1H 2014 (€M) 249 534(1) 2,054 4,337 4,550(2) 0.7x 1,966 Pending 1,009 599 2,121 regulatory Enersis 2,706 assets 3,350 1.0x Net of 2014 tariff deficit financing: •-€ 237 M from mainland Mainly Debt net of •-€563 M from non-ma
Slide 9: Spain & Portugal 1H 2014
spain&portugal 1H 2014
Slide 10: Highlights in 1H 2014
spain&portugal 1H 2014 Highlights in 1H 2014 A new draft RD for non-mainland systems has lead to reassess the retroactive regulatory impact up to -€259 M of which -€97 M were booked in 4Q 2013 Margin negatively affected by RDL 9/2013 partially compensated by the liberalized business and energy manag
Slide 11: Results in Spain largely impacted by regulatory measures
spain&portugal 1H 2014 Results in Spain largely impacted by regulatory measures partially offset by management actions €M 1H 2014 1H 2013(1) Change Like-for-like(2) Revenues 10,253 10,708 -4% Gross margin 2,645 2,870 -8% EBITDA 1,694 1,810 -6% +3% EBIT(3) 965 945 +2% Net finance expenses 66 67 -1% N
Slide 12: Regulatory measures impacting liberalized and regulated business margins
spain&portugal 1H 2014 Regulatory measures impacting both liberalized and regulated business margins -8% -2% €M 2,870 +9% -11% 2,807 -6% 2,645 -21% Liberalized business Regulated business 1H 2014 1H 2013 Ex non mainland new retroactive Ex new non- Regulated business 1H 2014 measures Non mainland new
Slide 13: Mainland output and energy management optimization
spain&portugal 1H 2014 Mainland output and energy management optimization Increase in mainland output 1H 2014 energy management Gross electricity Gross electricity GWh sources sales 26,196 52 TWh 52 TWh 25,987 +1% 587 605 CCGT SCVP purchases(1) 10 10 SCVP sales(1) 5,086 5,123 Imported coal 2 Pool sa
Slide 14: Latin America 1H 2014
latin america 1H 2014
Slide 15: Highlights in 1H 2014
latin america 1H 2014 Highlights in 1H 2014 4.4%1 growth in LatAm Dx demand: Brazil and Peru outperformance -1.0% drop in Gx output: planned and unplanned outages in thermal plants, mainly in Argentina and Chile, in spite of hydro recovery Sound underlying2 evolution of Gx business due to higher sel
Slide 16: Latin America 1H 2014 results
latin america 1H 2014 EBITDA negatively affected by higher MMC recognition in Argentina last year, Fx, Bocamina II temporary shutdown and one-offs in Dx €M 1H 2014 1H 2013(1) Change Like-for-like(2) Revenues 4,458 5,062 -12% Gross margin 1,862 2,437 -24% EBITDA 1,217 1,729 -30% -21% EBIT 892 1,373 -
Slide 17: Chile: results affected by Gx outages and Fx
latin america 1H 2014 Chile: results affected by Gx planned and unplanned outages and Fx Generation output Distribution sales(1) GWh Lower thermal output due to Bocamina -10% II shutdown and CCGT’s planned and +3% unplanned outages could not be compensated by better hydro 9.109 8.166 conditions 6.
Slide 18: Brazil: EBITDA affected by drought effects in Dx
latin america 1H 2014 Brazil: EBITDA affected by drought effects in Dx, worse energy mix in Gx and FX impact Generation output Distribution sales(1) GWh +7% Higher hydro volumes from Cachoeira 9.905 Higher Dx volumes due to weather 9.266 +12% conditions in Ampla concession area 2.216 2.473 1 2 1
Slide 19: Colombia: good operating performance in local currency
latin america 1H 2014 Colombia: good operating performance in local currency Generation output Distribution sales(1) GWh -4% Output decrease due to worse +2% hydro conditions 6.366 6.113 Urban areas demand increase lower 4.029 3.932 than in the country 1H 2013 11H 2014 1H 2013 21H 2014 Gx EBITDA
Slide 20: Peru: remarkable operating results
latin america 1H 2014 Peru: remarkable operating results Generation output Distribution sales(1) GWh +7% +4% Higher thermal dispatch more than compensate lower hydro output 4.193 4.503 Demand increase in our concession 3.235 3.363 area lower than in the country 1H 2013 11H 2014 2 2014 1H 2013 1H
Slide 21: Argentina: EBITDA impacted by MMC recognition and heat wave
latin america 1H 2014 Argentina: EBITDA negatively impacted by higher MMC recognition in 2013 and heat wave effects in Dx. Gx benefiting from new framework Generation output Distribution sales(1) GWh +5% +4% Hydro output increase due better reservoir levels 7.391 7.116 6.825 7.155 Edesur outperf
Slide 22: Final remarks 1H 2014
final remarks 1H 2014
Slide 23: Final remarks
final remarks 1H 2014 Final remarks Results largely impacted by regulatory measures Spain & Effective cost reduction and energy management actions mitigated regulatory effects Portugal Improved outlook concerning demand and prices and regulatory stability Operating margins heavily impacted b
Slide 24: Appendices 1H 2014
appendices 1H 2014
Slide 25: Net installed capacity and output
appendices 1H 2014 Net installed capacity and output(1) Latin MW at 30/06/14 Spain&Portugal America Total Total 21,653 16,469 38,122 Hydro 4,679 8,762 13,441 Nuclear - Installed 3,318 3,318 net Coal 5,306 836 6,142 capacity Natural gas 5,445 4,254 9,699 Oil-gas 2,905 2,530 5,435 CHP/Renewables na 87
Slide 26: Latin America: generation and distribution figures
appendices 1H 2014 Latin America: generation and distribution figures Generation Output Distribution Sales(1) GWh GWh +4.4% 31,283 28,709 28,410 29,957 6,825 -1.0% 7,391 +4% 7,155 +5% 7,116 Argentina 2,216 +12% 2,473 Brazil 9,905 +7% 9,266 9,109 8,166 -10% Chile 6,408 6,595 +3% 6,366 6,113 -4% Colom
Slide 27: Latin America: EBITDA breakdown by country and business
appendices 1H 2014 Latin America: Ebitda break down by country and business nature Ebitda Generation(1) Ebitda Distribution €M €M 724 990 680 Argentina 31 41 237 110 +32% -6% 103 Brazil -6% 529 150 90 314 -47% -40% Chile 181 -42% 138 120 -13% 314 314 0% Colombia 229 208 -9% 132 +11% 72 74 +3% 119 Pe
Slide 28: Endesa (excl. Enersis): financial debt maturity calendar
appendices 1H 2014 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 30 June 2014: €2,374 M(1) Bonds Bank debt and others ECPs and domestic commercial paper (2) Endesa's liquidity 756 excl. Enersis 515 508 covers 28 600 months of 295 352 266 debt 444
Slide 29: Enersis: financial debt maturity calendar
appendices 1H 2014 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 30 June 2014: €4,956 M(1) Bonds Bank debt and others 2,591 272 Enersis has sufficient liquidity to 2,319 cover 557 533 521 462 35 months 292 130 161 of debt 225 157 239 53 332 403 360 305 maturiti
Slide 30: Financial policy and net debt structure
appendices 1H 2014 Financial policy and net debt structure Structure of Endesa's net debt ex-Enersis Enersis net debt structure €M €M 3,350 3,350 1,200 1,200 Floating 41% Floating 54% Other 64% Euro 100% Fixed 59% Fixed 46% US$ 36% By interest rate By currency By interest rate By currency Average co
Slide 31: 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 32: Consolidated results 1H 2014
consolidated results 1H 2014 32
Slide 33: Endesa Mobile
consolidated results 1H 2014 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 33