Enel SpA · MIL:ENEL
Enel SpA — 9M 2014 Earnings Presentation
49 slides from Enel SpA's earnings presentation, Nov 11, 2014
Slide 1: 9M 2014 Results
9M 2014 Results November 11, 2014
Slide 2: Agenda
Agenda • Opening remarks F. Starace • 9M 2014 Interim results L. Ferraris • Closing remarks F. Starace • Annexes Investor Relations 1 Enel S.p.A.
Slide 3: Opening remarks
Opening remarks Disposal programme on track Binding offers for Slovakia and Romania expected by the end of the year Decoupling of Iberia and Latam operations complete 5% increase of Group’s economic interest in Enersis Increasing Endesa’s free float Size: 17% of share capital with a possible increas
Slide 4: Highlights of the period
Highlights of the period Italy: strong results in all business lines Iberia: our operations remain resilient despite the impact from additional regulatory measures Latam: better performance in 3Q mitigated one-off negative items Renewables: acceleration of organic growth Investor Relations 3 Enel S.
Slide 5: Agenda
Agenda • Opening remarks F. Starace • 9M 2014 Results L. Ferraris • Closing remarks F. Starace • Annexes Investor Relations 4 Enel S.p.A.
Slide 6: Financial highlights
Financial highlights Consolidated results (€mn) 9M13 % 9M13 restated1 9M14 vs restated Revenues 59,149 57,836 54,075 -6.5 EBITDA 12,187 11,966 11,608 -3.0 - recurring2 12,187 11,966 11,476 -4.1 EBIT 7,478 7,352 7,155 -2.7 Group net income 2,335 2,335 1,957 -16.2 Group net ordinary income2 2,307 2,30
Slide 7: Financial highlights: from EBIT to net income
Financial highlights From EBIT to Net Income (€mn) 9M13 % 9M13 restated1 9M14 vs. restated EBIT 7,478 7,352 7,155 -2.7 Net financial charges (2,016) (2,010) (2,504) +24.5 Interest charges (2,064) (2,058) (2,066) +0.4 Other 48 48 (438) n.m. Net income from equity investments using equity 69 139 49 -6
Slide 8: Focus on forward electricity sales
Focus on forward electricity sales Level of total production hedged (%) Italy Spain2 100 100 100 100 ~5 ~ 30 ~ 50 ~ 95(1) Unhedged ~ 70(1) ~ 50 Hedged 2014 2015 2014 2015 Latam Slovakia 100 100 100 100 ~ 25 ~ 25 ~ 75 ~ 75 2014 2015 2014 2015 Investor Relations 7 1. Including roll-over and green cert
Slide 9: Group EBITDA evolution (€mn)
Group EBITDA evolution (€mn) -3.0% +80 +183 -45 -187 11,966 +125 -528 +7 +7 11,608 112 119 1,305 1,312 2,554 2,026 S&H EGP 2,510 2,697 Latam Iberia 778 823 International I&N 2,897 Italian operations: 3,080 Italian operations: Market 4,863 €mn 4,475 €mn G&EM 758 678 900 1,025 9M13 G&EM Market I&N Int
Slide 10: EBITDA evolution: G&EM Italy (€mn)
EBITDA evolution: G&EM Italy (€mn) +13.9% +28 1,025 +127 900 -30 9M13 Generation Gas Other2 9M14 restated1 margin margin 1. Due to the application of IFRS 11 (-64 €mn) 2. Including non recurring item of +50 €mn remeasurement of fair value of SE Hydropower Investor Relations 9 Enel S.p.A.
Slide 11: EBITDA evolution: Market Italy (€mn)
EBITDA evolution: Market Italy (€mn) +11.8% +115 -35 758 678 9M13 Free Regulated 9M14 restated market market Investor Relations 10 Enel S.p.A.
Slide 12: EBITDA evolution: Infrastructure & Networks Italy (€mn)
EBITDA evolution: Infrastructure & Networks Italy (€mn) +6.3% +304 3,080 2,897 -43 -78 9M13 Energy Connection Other 9M14 restated margin fees Investor Relations 11 Enel S.p.A.
Slide 13: EBITDA evolution: International (€mn)
EBITDA evolution: International (€mn) -5.5% -17.9% +125 948 -116 823 -29 -9 -16 778 295 279 252 Enel Russia France, Belgium, EIH4 SEE3 223 Slovakia 415 299 -14 -23 9M13 Other 9M13 Slovakia SEE3 France, Enel Russia 9M14 restated1 items2 restated1 Belgium, adjusted EIH4 1. Due to the application of IF
Slide 14: EBITDA evolution: Iberia (€mn)
EBITDA evolution: Iberia1 (€mn) -6.9% +100 -396 2,697 +109 2,510 Of which, new retroactive measures on non mainland generation: -162 €mn 9M13 Liberalized Regulated Other 9M14 restated2 business business 1. Excluding Enel Green Power 2. Due to the application of IFRS 11 (-40 €mn) Investor Relations 1
Slide 15: EBITDA evolution: Latam (€mn)
EBITDA evolution: Latam1 (€mn) -20.7% 2,554(2) -327 Peru -127 +111 +35 -194 302 €mn -32 2,026(3) Peru Colombia 312 €mn 813 €mn Colombia Chile 858 €mn 565 €mn Chile Brazil 450 €mn 644 €mn Argentina Brazil 242 €mn 466 €mn Argentina -54 €mn 9M13 Argentina Brazil Chile Colombia Peru Forex 9M14 restated4
Slide 16: EBITDA evolution: Enel Green Power (€mn)
EBITDA evolution: Enel Green Power (€mn) +0.5% 1,305 +8 -9 +8 1,312 185 193 136 127 North America 984 Latin America 992 Europe 9M13 Europe Latin North 9M14 restated1 America America Investor Relations 15 1. Due to the application of IFRS 11 (-6 €mn) Enel S.p.A.
Slide 17: Net debt evolution (€mn)
Net debt evolution (€mn) +4,872 (1) December 31, Cash flow Capex Net financial Taxes Dividends3 Extra- Sep. 30, ‘14 Forex September 30, 2013 From charges ordinary ex- fx effect effect 2014 (restated2) operations activities +10(4) +2(4) -39,706 -43,275 -44,578 -4,012 +6,239 -2,249 -814 -1,901 -832 -1
Slide 18: Agenda
Agenda • Opening remarks F. Starace • 9M 2014 Results L. Ferraris • Closing remarks F. Starace • Annexes Investor Relations 17 Enel S.p.A.
Slide 19: Closing remarks
Closing remarks Consistent execution of key managerial actions Ongoing plans to enhance the Group’s economic interest in Latam Enhanced focus on efficiencies and maintenance capex Acceleration of growth in renewables FY2014 EBITDA and ordinary net income confirmed Investor Relations 18 Enel S.p.A.
Slide 20: Operational and financial annexes
Operational and financial annexes
Slide 21: Production mix (TWh)
Production mix (TWh) +0.2% 54.0 54.1 0.8% 0.4% 9.9% 8.2% Group production mix 46.0% 47.8% Italy - 9.3% 9.6% 210.6 210.5 34.0% 34.0% 10.3% 10.5% 9M13 9M14 13.7% 12.9% restated 28.6% -0.1% 28.6% 13.9% 14.6% 156.6 156.4 7.1% 6.4% 13.6% 14.0% 26.4% 27.0% 15.0% 14.5% 9M13 9M14 Other Countries 22.6% 21.9%
Slide 22: 9M 2014 Group total net installed capacity: breakdown by source and location
9M 2014 Group total net installed capacity1: breakdown by source and location Hydro Other Nuclear Coal CCGT Oil & gas TOTAL MW ren. ST/OCGT Italy 12,690 1,624 - 6,486 5,199 10,767 36,766 Iberia 4,723 1,777 3,318 5,306 5,445 2,905 23,474 Centrel 2,329 28 1,814 797 - - 4,968 SEE 19 1,043(2) - - 406(3)
Slide 23: 9M 2014 Group total net production: breakdown by source and location
9M 2014 Group total net production1: breakdown by source and location Hydro Other Nuclear Coal CCGT Oil & gas TOTAL GWh ren. ST/OCGT Italy 18,410 5,194 - 25,861 4,454 215 54,134 Iberia 7,228 3,161 18,576 17,604 3,706 4,679 54,954 Centrel 3,189 32 10,772 1,265 - - 15,258 SEE 29 1,541(2) - - 432(3) -
Slide 24: 9M 2014 Enel Green Power net installed capacity
9M 2014 Enel Green Power net installed capacity: breakdown by source and location MW Hydro Geothermal Wind Other TOTAL Europe 1,574 723 3,398 281 5,976 Latam 732 - 651 32 1,415 North America 318 72 1,664 29 2,083 Other countries (South Africa) - - - 10 10 TOTAL 2,624 795 5,713 352 9,484 Investor Rel
Slide 25: 9M 2014 Enel Green Power net production
9M 2014 Enel Green Power net production: breakdown by source and location GWh Hydro Geothermal Wind Other TOTAL Europe 5,737 4,135 5,432 322 15,626 Latam 2,270 - 764 11 3,045 North America 683 292 3,840 37 4,852 Other countries (South Africa) - - - 3 3 TOTAL 8,690 4,427 10,036 373 23,526 Investor Re
Slide 26: Group EBITDA: regulated/unregulated activities
Group EBITDA: regulated/unregulated activities 9M 2014 EBITDA recurring Stability and high visibility 11,476 €mn 11% 48% 41% Forward sales and hedging procurement Unregulated contracts to protect Regulated margin Enel Green Power Investor Relations 25 Enel S.p.A.
Slide 27: Enel's long-term debt maturity profile (€mn)
Enel’s long-term debt maturity profile (€mn) Endesa Enel Group (excluding Endesa) 30,957 3,486 Bonds 4,977 Bank loans and others 1,302 27,471 7,833 6,279 6,135 5,156 534 746 772 477 653 7,299 5,533 96 5,363 4,503 381 <12m(1) 4Q15 2016(2) 2017(3) 2018(4) After 2018 6 years and 6 months Average cost o
Slide 28: Enel Group liquidity analysis (€mn)
Enel Group liquidity analysis (€mn) Amount Outstanding Available (1) Committed credit lines 15,358 541 14,818 Cash and cash equivalents - (7,757) 7,757 Total 15,358 (7,216) 22,575 Uncommitted lines 939 186 753 Commercial paper 9,318 3,866 5,452 Total liquidity 25,615 (3,165) 28,780 1. Of which ca. 1
Slide 29: Debt structure
Debt structure1 • Average debt maturity: 6 years and 6 months • Average cost of gross debt2: 4.9% • (Fixed+hedged)/Total gross long-term debt: 80% • Rating: Standard&Poor’s = BBB/A-2 Stable Outlook Moody’s = Baa2/P-2 Negative Outlook Fitch = BBB+/F2 Stable December 31, September 30, €mn % 2013 2014
Slide 30: Enel's group financial debt evolution
Enel’s group financial debt evolution1 Enel Group (excluding Endesa) Endesa Group - Total €mn 12.31.2013 09.30.2014 12.31.2013 09.30.2014 09.30.2014 Bank loans – maturities > 12m 6,340 7,389 1,533 775 8,164 Bonds – maturities > 12m 37,924 36,861 3,559 3,776 40,637 Preference shares > 12m - - - - - O
Slide 31: Enel's group financial debt by subsidiary
Enel’s group financial debt by subsidiary1 €mn Enel SpA Endesa EFI2 EIH2 Slovenské EP2 ED2 Other Total Bonds 19,681 4,149 21,501 298 - - - (15) 45,614 Bank loans - 972 - - 1,444 437 3,137 3,192 9,182 Other loans (3) (2,691) - - (862) (298) (921) 236 (4,539) Commercial paper - 1,027 2,836 - - - - (1)
Slide 32: Enel's group financial debt
Enel’s group financial debt Average cost of net debt Average cost of gross debt Average residual maturity (years:months) 6.1% 6.2% 6.4% 6:11 6:11 4.8% 4.9% 4.9% 6:6 2012 2013 9M 2014 2012 2013 9M 2014 2012 2013 9M 2014 Net financial debt (€bn) Fixed + Hedged Fixed + Hedged /Total net debt /Total gro
Slide 33: Enel's long-term debt maturity profile (€mn)
Enel’s long-term debt maturity profile (€mn) Enel Group (excluding Endesa) €mn <12m 4Q15 2016 2017 2018 After 2018 Bank loans 821 198 731 682 1,080 4,697 Bonds 4,604 157 4,542 3,730 6,115 22,317 Other 108 26 90 91 104 457 Total 5,533 381 5,363 4,503 7,299 27,471 Endesa €mn <12m 4Q15 2016 2017 2018 A
Slide 34: Enel Group liquidity analysis excluding Endesa (€mn)
Enel Group liquidity analysis excluding Endesa (€mn)1 Amount Outstanding Available Revolving Credit Facility (2015)2 9,440 - 9,440 Other committed credit lines 2,029 510 1,519 Total committed credit lines 11,469 510 10,959 Other short-term bank debt - uncommitted lines 300 186 114 Total credit lines
Slide 35: Endesa liquidity analysis (€mn)
Endesa liquidity analysis (€mn)1 Amount Outstanding Available Total committed credit lines 3,889 31 3,859 Other short-term bank debt – uncommitted lines 639 0 639 Total credit lines 4,528 31 4,497 Commercial paper issued by the Endesa Group 3,318 1,026 2,292 Total credit lines + CP 7,846 1,057 6,789
Slide 36: Capex by business area (€mn)
Capex by business area (€mn)1 +9.1% 4,012 3,679 35 -14.6% 41 1,060 +28.8% Other2 823 Enel Green Power Iberia & Latam 1,294 1,424 +10.0% International Infrastructure & 593 598 +0.8% Networks Market 723 696 -3.7% Generation & Energy 50 69 Management +38.0% 155 130 -16.1% 9M13 9M14 restated 1. Continui
Slide 37: EBITDA evolution - Other (€mn)
EBITDA evolution - Other1 (€mn) +6.3% 112 -51 +58 119 9M13 Services Other 9M14 restated 1. Including Services & Holding, Engineering & Research, upstream gas and nuclear activities Investor Relations 36 Enel S.p.A.
Slide 38: Balance sheet
Balance sheet FY13 €mn restated 9M14 % Net financial debt 39,706 44,578 +12.3 Shareholders’ equity 52,832 52,843 - Net capital employed 92,538 97,421 +5.3 Investor Relations 37 Enel S.p.A.
Slide 39: Generation & Energy Management - Italy
Generation & Energy Management - Italy 9M13 €mn 9M14 % restated Revenues 17,527 15,111 -13.8 EBITDA 900 1,025 +13.9 EBIT 538 626 +16.4 Capex 155 130 -16.1 (1) Headcount 5,621 5,530 -1.6 1. As of December 31st, 2013 Investor Relations 38 Enel S.p.A.
Slide 40: Market - Italy
Market - Italy 9M13 €mn 9M14 % restated Revenues 12,687 11,382 -10.3 EBITDA 678 758 +11.8 EBIT 272 338 +24.3 Capex 50 69 +38.0 (1) Headcount 3,687 3,676 -0.3 1. As of December 31st, 2013 Investor Relations 39 Enel S.p.A.
Slide 41: Infrastructure & Network - Italy
Infrastructure & Network - Italy 9M13 €mn 9M14 % restated Revenues 5,597 5,526 -1.3 EBITDA 2,897 3,080 +6.3 EBIT 2,173 2,335 +7.5 Capex 723 696 -3.7 (1) Headcount 17,689 18,955 +7.2 1. As of December 31st, 2013 Investor Relations 40 Enel S.p.A.
Slide 42: International
International 9M13 €mn 9M14 % restated Revenues 4,615 3,918 -15.1 EBITDA 823 778 -5.5 EBIT 395 479 +21.3 Capex 593 598 +0.8 (1) Headcount 11,439 10,882 -4.9 1. As of December 31st, 2013 Investor Relations 41 Enel S.p.A.
Slide 43: Iberia & Latam
Iberia & Latam 9M13 €mn 9M14 % restated Revenues 23,097 21,959 -4.9 EBITDA 5,251 4,536 -13.6 EBIT 3,061 2,442 -20.2 Capex 1,294 1,424 +10.0 (1) Headcount 22,541 22,902 +1.6 1. As of December 31st, 2013 Investor Relations 42 Enel S.p.A.
Slide 44: Enel Green Power
Enel Green Power 9M13 €mn 9M14 % restated Revenues 2,049 2,016 -1.6 EBITDA 1,305 1,312 +0.5 EBIT 881 885 +0.5 Capex 823 1,060 +28.8 (1) Headcount 3,469 3,616 +4.2 1. As of December 31st, 2013 Investor Relations 43 Enel S.p.A.
Slide 45: Other (1/2)
Other1 (1/2) 9M13 €mn 9M14 % restated Revenues2 1,371 1,456 +6.2 Holding 215 199 -7.4 Services 1,027 1,021 -0.6 Engineering & Research 218 234 +7.3 Upstream 1 81 >100 EBITDA3 112 119 +6.3 Holding (12) (32) >100 Services 128 77 -39.8 Engineering & Research 9 6 -33.3 Upstream (13) 68 n.m. 1. Including
Slide 46: Other (2/2)
Other1 (2/2) 9M13 €mn 9M14 % restated EBIT2 32 50 +56.3 Holding (19) (38) -100 Services & other 59 18 -69.5 Engineering & Research 5 3 -40.0 Upstream (13) 67 n.m. Capex 41 35 -14.6 Holding 1 2 +100 Services & other 29 25 -13.8 Engineering & Research 2 1 -50.0 Upstream 9 7 -22.2 (3) Headcount 5,896 5
Slide 47: EBIT by business area (€mn)
EBIT by business area (€mn) -2.7% 7,352 7,155 32 50 +56.3% 881 885 +0.5% 3,061 2,442 -20.2% Other1 EGP Iberia & Latam 479 +21.3% International 395 I&N Market +7.5% 2,173 2,335 G&EM 338 +24.3% 272 538 626 +16.4% 9M13 9M14 restated 1. Including Services & Holding, Engineering & Research, upstream gas
Slide 48: Disclaimer
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 based on Enel S.p.A.’s curr
Slide 49: Contact us
Contact us Investor Relations Team (investor.relations@enel.com) • Luca Torchia +39 06 8305 3437 Head of IR • Elisabetta Ghezzi +39 06 8305 2708 IR Coordination and Outbound communication • Marco Donati +39 06 8305 9252 Inbound communication • Matteo Cavadini +39 06 8305 2326 Staff • Federica Dori +