Slide 1: Endesa FY 2012 results
27 | 02 | 2013 endesa FY 2012 results
Slide 2: Business context in 2012
consolidated results FY 2012 Business context in 2012 Demand Spain(1) Endesa distribution area(2) Average growth weighted by TWh Spain: Latin demand +4.5% America: solid decrease due Industry -2.7% 5.9% growth in all to lower Services -0.4% 5.2% 4.5% countries 4.2% 3.8% industrial -0.5% mainly in Pe
Slide 3: Results supported by a well diversified assets portfolio
consolidated results FY 2012 Results supported by a well diversified assets portfolio Spain&Portugal&Others Latin America Total Endesa 162,490 102,766 141,434 63,118 59,724 GWh FY 2012 78,316 Hydro + Hydro 34,985 67,302 Hydro + Nuclear Nuclear 32,317 Production Electricity Sales(1) Production Electr
Slide 4: Operating results negatively affected by regulatory, economic and weather conditions
consolidated results FY 2012 Operating results negatively affected by regulatory, economic and weather conditions 2012 2011 Change €M Revenues 33,933 32,686 +4% Gross margin 10,828 11,004 -2% EBITDA 7,005 7,265 -4% Spain&Portugal&Others 3,796 4,024 -6% Latin America 3,209 3,241 -1% EBIT 4,418 4,653
Slide 5: 2012 efficiency and synergy targets with Enel exceeded
consolidated results FY 2012 2012 efficiency and synergy targets with Enel exceeded Annual target (€M) 157 436 685 977 1,116 Synergies achieved in 2012 Outperformance 43% 13% 24% 24% 17% 1,307 1,210 259 181 848 108 (€M ) 494 1,029 1,048 740 224 494 224 2008 2009 2010 2011 2012 Synergies Zenith • Ori
Slide 6: Sound financial position
consolidated results FY 2012 Sound financial position Net debt evolution in 2012 (€M) 11,002 5,247 1,231 352 8,778 1.3x Enersis 3,883 2,052 86 6 Pending 4,144 1.4x 4,839 regulatory assets Spain& Tariff Def(2): -€1,730 M Portugal 7,119 Mainland securitization: €1,644 M &others Debt net of 1.1x 4,634
Slide 7: Spain: regulation update (I)
consolidated results FY 2012 Spain: regulation update (I) Legislation enacted in 2012 Impact on Endesa RDL 1/2012: suspends the renewable projects that were not approved for inclusion in the pre-registry RDL 13/2012: • Decrease in distribution and transmission remuneration • Other measures: capa
Slide 8: Spain: regulation update (II)
consolidated results FY 2012 Spain: regulation update (II) Legislation enacted in 2013 RDL 2/2013: €0.6 – 0.8 bn of lower revenues in regulated and renewable activities Change in the inflation index used to update revenues of regulated activities Elimination for renewables to switch remunerati
Slide 9: Spain: No expected tariff deficit in 2013
consolidated results FY 2012 Spain: No expected tariff deficit in 2013 Year 2013 €M • State contribution through €2.2 bn Tariff extraordinary financing sufficiency for 2013 • State Budget to bear 100% of non-mainland compensations • State Budget to fund €2.2 bn by means of an extraordinary financing
Slide 10: Additional comments to regulatory measures
consolidated results FY 2012 Additional comments to regulatory measures Large and discriminatory financial impact on traditional utilities. Conventional generation has received an additional burden instead of a relief to its already critical situation. National coal power plants, while perform
Slide 11: Update on tariff deficit securitization process
consolidated results FY 2012 Update on tariff deficit securitization process 1st tranche fully securitized (€13.6 bn as of November 2010) (1): Receivables transferred • €9.8 bn securitized in 2011 (€5.1 bn for Endesa; 52% share) to FADE in • €3.3 bn securitized in 2012 (€1.7 bn for Endesa; 52% sha
Slide 12: Spain: regulation conclusions
consolidated results FY 2012 Spain: regulation conclusions Tariff sufficiency for 2013 achievable State contributions are needed to guarantee the system balance Latest regulatory measures (RDL 2/2013) go in the right direction Securitization progress is key for the system sustainability 12
Slide 13: Latam: regulation update
consolidated results FY 2012 Latam: regulation update Electrical Highway: Under debate in the Congress, Government priority Renewables: Current target 10/2024 under review Chile Chilectra tariff review • Revision process ended (final decree pending). New tariffs to apply from 4th November 2012
Slide 14: Enersis capital increase update: EGM firmly supports the transaction
consolidated results FY 2012 Enersis capital increase update: EGM firmly supports the transaction 82% of total shares approved the capital increase Successful Total capital increase equivalent to USD 5,995(1) million: EGM Conosur valued at USD 3,634 million (December 20th 2012) The balance (up t
Slide 15: Spain&Portugal&Others FY 2012
spain&portugal&others FY 2012
Slide 16: Highlights in 2012
spain&portugal&others FY 2012 Highlights in 2012 Regulated business: negatively impacted by latest regulatory measures Output generation (+4%)(1) with outstanding performance of imported coal (+35%) and nuclear (+7%) Better liberalized margins supported by higher selling prices and better production
Slide 17: Results affected by challenging business context and regulatory measures
spain&portugal&others FY 2012 Results affected by challenging business context and regulatory measures €M 2012 2011 Change Revenues 23,146 22,650 +2% Gross margin 6,213 6,458 -4% EBITDA 3,796 4,024 -6% EBIT(1) 1,998 2,244 -11% Net finance expenses 256 287 -11% Net attributable income(2) 1,410 1,593
Slide 18: Positive performance of liberalised margins
spain&portugal&others FY 2012 Positive performance of liberalised margins €M 6,458 +3% 6,213 -9% -4% 2011 Liberalized business Regulated business 2012 Higher sale price to final customer Social bonus (Supreme Court ruling) Impact of RDL 13/2012 and RDL 20/2012 in Dx and Generation mix (production/en
Slide 19: Liberalized business supported by higher generation and selling prices
spain&portugal&others FY 2012 Liberalized business supported by higher generation and selling prices Market margins evolution: wholesale price Increase in mainland output(1) vs. price to end customers GWh 62,631 60,287 +4% €/MWh 70 62 €/MWh 4,251 CCGT 60 58 €/MWh 5,851 51 €/MWh 16,023 Imported coal
Slide 20: Energy management optimization
spain&portugal&others FY 2012 Energy management optimization Gross electricity sources Gross electricity sales 122 TWh(3) 122 TWh LRT Auctions (1) 27 27 LRT (1) Energy purchases 12 Pool sales Unit purchase cost €50/MWh 33 (slightly lower vs 2011) 51% 76 TWh 83 Liberalized Mainland ordinary regime in
Slide 21: Latin America FY 2012
latin america FY 2012
Slide 22: Highlights in FY 2012
latin america FY 2012 Highlights in FY 2012 Strong economic performance: distribution sales (+4.6%)(1) 37% drop in EBITDA in generation Chile due to worse mix as severe drought intensified coupled with expiration of risk transfer clauses Strong contribution from Colombian operations Enactment of Law
Slide 23: Stable results despite difficult business environment
latin america FY 2012 Stable results despite difficult business environment €M FY 2012 FY 2011 Change Revenues 10,787 10,036 +7% Gross margin 4,615 4,546 +2% EBITDA 3,209 3,241 -1% EBIT(1) 2,420 2,409 0% Net finance expenses(2) 343 353 -3% Net income 1,376 1,428 -4% Net attributable income 624 619 +
Slide 24: Chile: drought impacting generation results
latin america FY 2012 Chile: drought impacting generation results Generation output Distribution sales(1) Chile GWh GWh -3% Worse hydro conditions Start of operations of Bocamina +4% II in 4Q 20,722 20,194 11,959 12,485 Solid growth in Dx sales FY 2011 1FY 2012 FY 2011 2 FY 2012 Gx EBITDA Chil
Slide 25: Brazil: stable results despite one-off effects
latin america FY 2012 Brazil: stable results despite one-off effects Generation output Distribution sales(1) Brazil GWh GWh +7% Higher Gx supported by higher hydro output and thermal dispatch 16,798 18,000 Higher Dx volumes due to weather +25% conditions and increased client 4,155 5,177 base FY
Slide 26: Colombia: outstanding performance even stripping out net worth tax in 2011
latin america FY 2012 Colombia: outstanding performance even stripping out net worth tax in 2011 Generation output Distribution (1) Colombia GWh sales +10% GWh Strong increase in generation +2% due to better hydro conditions and thermal dispatch 12,090 13,294 8,041 8,193 Higher sales due to incr
Slide 27: Peru: solid results
latin america FY 2012 Peru: solid results Generation output Distribution sales(1) Peru GWh GWh -6% Lower Gx due to planned +5% outages in thermal facilities (maintenance) 9,840 9,231 6,017 6,288 Higher sales supported by economic growth FY 2011 1FY 2012 FY 2011 2 FY 2012 Gx EBITDA Peru EBITDA Dx
Slide 28: Argentina: poor results… but good signals from authorities
latin america FY 2012 Argentina: poor results… …but good signals coming from authorities Generation output Distribution (1) Argentina GWh sales GWh -5% +3% Thermal output decreases due to planned outages. Partially compensated by hydro dispatch 15,960 15,222 14,280 14,758 Solid distribution volu
Slide 29: Final remarks FY 2012
final remarks FY 2012
Slide 30: Final remarks
final remarks FY 2012 Final remarks Dividend policy: adapting to adverse environment Stable operating results in Spain & Portugal despite negative impact from regulatory measures and weak market conditions Spain Challenging outlook for 2013 Stable operating results in Latin America despite hydro con
Slide 31: Appendices FY 2012
appendices FY 2012
Slide 32: Installed capacity and output
appendices FY 2012 Installed capacity and output(1) Spain& Latin MW at 31/12/12 Portugal&Others America Total Total 23,245 16,158 39,403 Hydro 4,716 8,666 13,382 Nuclear 3,686 - 3,686 Installed Coal 5,804 872 6,676 capacity Natural gas 4,878 3,958 8,836 Oil-gas 4,161 2,575 6,736 CHP/Renewables na 87
Slide 33: Latin America: generation and distribution figures
appendices FY 2012 Latin America: generation and distribution figures Generation Output Distribution Sales(1) GWh GWh +0.6% +4.6% 62,767 63,118 59,724 57,095 15,960 15,222 -5% 14,758 +3% Argentina 14,280 4,155 5,177 +25% Brazil 18,000 +7% 16,798 20,722 20,194 -3% Chile 11,959 12,485 +4% 12,090 13,29
Slide 34: Latin America: EBITDA break down by country and business nature
appendices FY 2012 Latin America: Ebitda break down by country and business nature Ebitda Generation(1) Ebitda Distribution €M €M 1,748 118 1,613 Argentina -58% 1,544 224 49 +10%(3) -8%(2) 256 +14% 1,402 Brazil -1% 678 457 -37% 728 684 Chile 272 +17% 602 233 433 +39% Colombia 503 +36% 371 245 249 +2
Slide 35: Endesa (excl. Enersis): financial debt maturity calendar
appendices FY 2012 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 31 December 2012: €5,201 M(1) Bonds (2) Bank debt and others ECPs and domestic commercial paper (3) Endesa's 1,689 1,604 1,379 liquidity 359 excl. Enersis 434 covers 46 1,242 1,255
Slide 36: Enersis: financial debt maturity calendar
appendices FY 2012 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 31 December 2012: €5,197 M(1) Bonds Bank debt and others 2,438 296 Enersis has sufficient liquidity to 920 850 2,142 cover 386 287 472 517 18 months 96 90 of debt 534 563 376 427 maturities 2013 2
Slide 37: Financial policy and net debt structure
appendices FY 2012 Financial policy and net debt structure Structure of Endesa's net debt ex-Enersis Enersis net debt structure €M €M 4,634 4,634 4,144 4,144 US$ 2% Floating 46% Floating 45% Other 48% Euro 98% Chilean Peso 12%(1) Fixed 54% Fixed 55% US$ 40% By interest rate By currency By interest r
Slide 38: Well on track on forward sales strategy
appendices FY 2012 Well on track on forward sales strategy Spain & Portugal Latin America (% estimated mainland output hedged) (% estimated output hedged) 100% Contracting level in Latin America that 70-75% optimizes margin 65-70% and risk exposure 10% 2013 2014 2013 2014 33% of the generation sold
Slide 39: 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 40: consolidated results FY 2012
consolidated results FY 2012 40