Slide 1: 9 Months Consolidated results
9 Months Consolidated results November 3rd, 2021
Slide 2: Key highlights of the period
Key highlights of the period Market context European policies Financial results Decarbonization ~61 GW(1) Global gas renewable European market pipeline toolbox setting 3.1 €bn EBITDA unbalances the guidance to despite adverse causing record >700 MW under tackle prices market context high prices cons
Slide 3: Regulatory update
Regulatory update EU toolbox Spanish measures • Measures should not distort electricity market nor question the Green Deal ▪ FNSSE proposal • Marginal and ETS system confirmed as the most efficient ▪ Draft Bill on CO2 levy • Clean energy transition is the best insurance against price shocks ▪ Fiscal
Slide 4: Regulatory update
Regulatory update Spanish 2021e electricity balance(1), TWh 257 257 Non mainland (regulated) 14 27 Regulated (indexed) • Regulated • Baseload output is not enough to Liberalized indexed renewables/cogeneration Production sold at 45 industrial cover fixed price sales (>80 TWh) spot prices 123 • Combi
Slide 5: Market context
Market context Spike in commodities impact power prices Demand in Spain (mainland), TWh(1) Commodities spot prices Average pool prices, €/MWh +3.4% +146% 101.4 +272% 78.5 176.2 182.1 31.9 9M 2020 9M 2021 FY2021e (4) 9M 2020 9M 2021 Y-o-y price increases in Europe, % Endesa’s area (2) : +103% 9M 2021
Slide 6: Market context
Market context €/MWh Impact on pool price(1) Forward prices 2022-24(3) • Electricity prices in Iberia increased by ~1.5x yoy, +146%, 9M2021 vs. 9M2020 Estimate FY2021 mainly due to gas price • Gas is expected to represent +146% ~+200% 82% of FY2021e pool price 78.5 101.4 increase -0.4 -1.1 39.3 55.4
Slide 7: Decarbonization
Decarbonization Mainland generation Decarbonization Mainland generation Installed capacity(1), GW Production(2), TWh CO2 emissions free output, % +2% -% 17.0 17.3 34.5 34.4 9.9 - 0.5 TWh 9.4 7.4 + 0.3 GW 7.7 -5% 2019 2020 9M 2021 Target 2023 +4% 3.3 3.3 19.5 19.9 73% 85% 85% 89% 6.3 6.3 5.1 5.1 9M 2
Slide 8: Decarbonization
Decarbonization Growth in renewable generation capacity Gross pipeline(1) of renewable projects, GW GENERATION STORAGE • Gross pipeline: 61.4 GW • 11.2 GW Generation mature pipeline + In execution 61.4 • Storage (BESS): 13.6 GW 50.2 13.6 8.7 0.7 1.8 Gross Pipeline Early stage Mature pipeline In exec
Slide 9: Electrification
Electrification Retail & Endesa X Electrification Retail & Endesa X Energy sold(1), TWh Customers, th. % Var. -% 2020 Q1 2021 H1 2021 9M 2021 YTD 66.4 66.3 Liberalized 5,690 5,627 5,568 5,623 -1% 9.9 9.6 14.0 13.5 Regulated 4,730 4,681 4,645 4,550 -4% 42.5 43.2 Total power customers 10,420 10,308 10
Slide 10: Electrification
Electrification Energy management Liberalized sales(1), TWh Power integrated margin(1), €/MWh Output(2) hedged 11.8 TWh -% indexed 13.5 TWh Unitary sales indexed revenue 54.8 54.8 sales 74.5 increase from higher Unitary revenue 65.2 indexed sales at higher 20.3 20.3 prices Variable cost(3) 32.0 46.3
Slide 11: 9M 2021 Financial results
9M 2021 Financial results endesa
Slide 12: Financial highlights
Financial highlights €mn EBITDA Net Income FFO Net Debt -% -3% -56% +45% +4% 3,136 2,993 3,125 1,511 1,459 1,969 10,000 6,899 862 9M 2020 9M 2020 lfl (1) 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 2020 9M 2021 Net Ordinary 1,700(2) 1,459 -14% Income (1) 9M 2020 like for like EBITDA excluding +515 €mn o
Slide 13: Like-for-like EBITDA evolution
Like-for-like EBITDA evolution €mn -11 €mn -% +132 €mn 3,136 +4% -178 19 DYoY (1) 3,125 -143 16 2,993 155 16 -39 1,371 1,406 +1% 1,390 116 132 287 +117% 1,649 1,471 1,432 -3% 9M 2020 2020 Provisions 9M 2020 Dx Non mainland Gx Gx+Sx (2) 9M 2021 Reported Non Dx Gx+Sx mainland Gx Slight EBITDA increase
Slide 14: Regulated business
Regulated business €mn Gross margin EBITDA Total margin: 2,248 €mn (+76 €mn) +3% +7% 2,172 2,248 (1) • Dx: -51 €mn, impacted by the new retributive 1,719 (1) parameters 1,603 323 450 132 287 • Non mainland: +127 €mn from market recovery and commodity hedging 1,849 1,798 1,471 1,432 Lfl fixed costs(2
Slide 15: Liberalized business
Liberalized business(1) €mn Gross margin EBITDA +2% Liberalized margin: 2,280 €mn (+55 €mn) +1% 2,280 • Electricity & Others: 2,213 €mn (+186 €mn): 2,225 1,390 1,406 281 (2) 208 (2) o Market context (~-350 €mn) (3) 119 (3) 198 o Others: CO2 regularization (+188 €mn), hydro canon (+48 €mn) and commod
Slide 16: Fixed costs evolution
Fixed costs evolution €mn -0.1% -1 €mn -31 €mn -2%(1,2) 1,404 1,434 1,403 1,403 (1) 30 (2) 0 1,261 143 (3) Personnel 659 706 -4% 681 681 costs 516 O&M costs 906 906 889 +2% 904 904 Capitalized -161 -161 -161 -182 -182 costs 9M 2020 Net 9M 2020 Other 9M 2020 9M 2021 Other 9M 2021 Reported provision l
Slide 17: Net Income evolution
Net Income evolution €mn -14% -3% -189 -73 12 -2 EBITDA +4% on a like for like basis -143 132 22 1,700 Higher financial income driven by the CO2 and 1,511 1,459 the Hydro Canon accrued interests (+84 €mn) Effective tax rate 23.9% (vs. 23.7% in 9M 2020) 9M 2020 Adjustments(1) 9M 2020 Net EBITDA lfl D
Slide 18: Cash Flow
Cash Flow €mn 0 -245 -1,732 3,125 -215 -71 862 -1,581 -719 EBITDA Net provision Provisions Working Income Taxes Financial FFO Capex (2) FCF release paid capital Expenses (1) & others PY 3,136 -143 -183 -616 -164 -61 1,969 -1,301 668 Delta YoY -0% n.a. +34% 2.8x +31% +16% -56% +22% -208% Cash flow af
Slide 19: Net financial debt analysis
Net financial debt analysis €mn Net debt evolution Gross debt 10,000 241 10,574 860 574 2,141 6,899 719 7,309 875 410 9,140 10,000 6,024 6,899 2020 FCF Dividends Others (1) 9M 2021 2020 9M 2021 Regulatory working capital(2) Net debt ex-regulatory Cash & Derivatives Net debt working capital Leverage(
Slide 20: Closing remarks
Closing remarks 3.1 €bn EBITDA On track to Continuous Main ESG despite adverse achieve 2021 dialogue to find indexes market context targets through efficient solutions acknowledge supported by non ongoing for the pool price Endesa’s recurrent effects managerial context leadership efforts 9M 2021 Res
Slide 21: 9M 2021 Annexes
9M 2021 Annexes endesa
Slide 22: Endesa: 9M 2021 P&L
Endesa: 9M 2021 P&L €mn Gx+Sx Dx Structure Adjustments TOTAL Income 16,803 1,930 397 -527 18,603 Procurements and services -14,019 -132 -37 113 -14,075 Gross margin 2,784 1,798 360 (414) 4,528 Self-constructed assets 77 92 13 0 182 Personel expenses -354 -193 -145 11 -681 Other fixed operating expen
Slide 23: Endesa: 9M 2020 P&L
Endesa: 9M 2020 P&L €mn Gx+Sx Dx Structure Adjustments TOTAL Income 11,125 1,971 393 -530 12,959 Procurements and services -8,524 -122 -32 116 -8,562 Gross margin 2,601 1,849 361 (414) 4,397 Self-constructed assets 52 94 15 0 161 Personel expenses -365 -7 -154 10 -516 Other fixed operating expenses
Slide 24: Profitability and credit metrics
Profitability and credit metrics Profitability Return on invested capital Credit metrics -7 pp -3.1 pp -25 pp 54% 15.4% 43% 47% 12.3% 2.7x 1.7x lfl2.4x 18% 9M 2020 9M 2021 2020 9M 2021 2020 9M 2021 Net Ordinary ROIC(1) FFO(2)/Net Debt Net debt/EBITDA Income/EBITDA (1) Calculated on a like-for-like b
Slide 25: Installed capacity and output
Installed capacity and output Total net installed capacity, MW Total gross output(1), GWh 9M 2021 2020 Var. (%) 9M 2021 9M 2020 Var. (%) Mainland 17,397 17,388 +0% 34,494 34,560 -0% Renewables (2) 7,790 7,781 +0% 9,523 9,943 -4% Hydro 4,743 4,749 -0% 4,864 6,042 -19% Wind 2,422 2,423 -0% 3,853 3,481
Slide 26: Gas operational highlights
Gas operational highlights Volumes sold(1), TWh Key figures 20% 58.3 2020 9M 2021 D Wholesale business 48.8 14.8 7.7 Total customers 1.7 1.7 -0% (mn) Retail 41.0 43.5 Unitary margin (2) 4.0 1.1 -72% (€/MWh) (2) Unitary margin exMtM 9M 2020 9M 2021 3.7 -0.8 -122% (€/MWh) (1) Rounded figures 9M 2021 R
Slide 27: Financial debt maturity calendar
Financial debt maturity calendar €bn Gross balance of maturities(1) ▪ Average life of debt: 4.2 years 3.6 3.1 ▪ Coverage of 20 months of debt maturities 0.5 0.0 2.3 ▪ Fixed rate 49% of Gross Debt 3.1 0.7 1.4 2.6 0.1 0.1 ▪ 98% in Euros 1.6 1.1 0.3 0.5 ▪ Liquidity 4,629 €mn: 568 €mn in cash and 0.2 0.
Slide 28: Final headcount
Final headcount 2020 9M 2021 9,591 (1) 2,011 9,266 7,235 1,623 1,136 6,923 2,943 856 2,829 2,503 2,363 2,356 2,343 875 4,637 4,814 3,596 3,704 767 440 466 1,041 1,110 Male Female Total Male Female Total Generation & Supply Distribution Structure & others 9M 2021 Results - Madrid, 3 November 2021 (1)
Slide 29: Glossary of terms (I/II)
Glossary of terms (I/II) Reference note of Consolidated Item Calculation Management Report Cost of gross financial debt / gross average financial debt: (99 €mn x (360/270) + 4 €mn) / 8,911 €mn Average cost of debt (%) 6.2 = 1.5% (Principal x number of days of term) / (Principal in force at the end o
Slide 30: Glossary of terms (II/II)
Glossary of terms (II/II) Reference note of Consolidated Item Calculation Management Report Gross Capex (€mn) Gross tangible (1,182 €mn) and intangible (212 €mn) Capex - rights of use (164 €mn) = 1,230 €mn 6.6 Long and short term financial debt (6,187 €mn + 4,387 €mn) - Cash and cash equivalents (56
Slide 31: 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 32: IR Team
IR Team Contact us Mar Martinez Head of Investor Relations Investor Relations team Contacts Isabel Permuy Javier Hernandez Email: ir@endesa.es Francesc Trilla Juan Carlos Jimenez Phone: + 34 91 213 15 03 Sonia Herranz + 34 91 213 90 49 Paloma de Miguel Website: www.endesa.com 32