Enel SpA · MIL:ENEL
Enel SpA — H1 2007 Earnings Presentation
45 slides from Enel SpA's earnings presentation, Sep 6, 2007
Slide 1: 2007 Interim Results
2007 Interim Results September 6, 2007
Slide 2: Agenda
Enel SpA Investor Relations Agenda 2007 Interim result Q&A Annexes 2
Slide 3: Financial highlights: Consolidated
Enel SpA 1H2007 Results Investor Relations Financial highlights: Consolidated €mn 1H06 1H07 % Revenues 19,065 18,857 -1.1% EBITDA 4,361 4,462 2.3% EBIT 3,565 3,134 -12.1% Group net income 1,978 1,982 0.2% (1) Net debt 11,690 25,069 114.4% 1. As of December 31, 2006 3
Slide 4: Enel's electricity sales
Enel SpA 1H2007 Results Investor Relations Enel’s electricity sales Volumes sold (TWh) +10.8% +10.8% 84.3 76.1 International 14.4 5.0 Italy 71.1 69.9 1H06 1H07 4
Slide 5: Italian electricity market overview (TWh)
Enel SpA 1H2007 Results Investor Relations Italian electricity market overview (TWh) +0.2% +0.2% 167.8 168.1 Import 20.6 25.2 Net production 98.5 100.7 Enel Net production 53.1 46.0 Pumped storage -4.4 -3.8 consumption 1H06 1H07 5
Slide 6: Enel's domestic electricity sales (TWh)
Enel SpA 1H2007 Results Investor Relations Enel’s domestic electricity sales (TWh) Electricity – Total market sales1 Free customers2 (thousand) 157.1 +0.1% +0.1% 157.3 668.0 71.2 69.9 +85.9% free 9.9 +85.9% 18.4 Enel eligible3 61.3 -16.0% 51.5 -16.0% 72.6 85.9 87.4 1H06 1H07 62.9 +1.4% +1.4% 63.8 fr
Slide 7: Enel's net production (TWh)
Enel SpA 1H2007 Results Investor Relations Enel’s net production (TWh) +1.4% +1.4% 62.9 63.8 International 9.8 17.8 Italy 53.1 46.0 1H06 1H07 7
Slide 8: Group production mix (%)
Enel SpA 1H2007 Results Investor Relations Group production mix (%) +1.4% +1.4% 62.9 TWh 63.8 TWh 10.8% 24.3% 17.4% Oil & Gas ST/OCGT 14.1% Gas CCGT 30.0% Coal 27.7% Nuclear 11.8% Other renewables 4.0% 5.6% 5.4% Hydro 24.3% 24.6% 1H06 1H07 8
Slide 9: Enel's electricity distribution (TWh)
Enel SpA 1H2007 Results Investor Relations Enel’s electricity distribution (TWh) -0.3% -0.3% 132.5 132.1 International 6.2 6.2 Italy 1 126.3 125.9 1H06 1H07 1. Net of energy dispatched in the previous years 9
Slide 10: Italian gas market overview (bcm)
Enel SpA 1H2007 Results Investor Relations Italian gas market overview (bcm) -7.6% -7.6% 1.1 46.1 Other 1.1 42.6 Thermoelectric 15.6 16.7 Industrials 10.4 9.7 Residential & Commercial 19.0 15.1 1H06 1H07 Source: Ministry of the Economic Development and Enel estimates 10
Slide 11: Enel's gas sales
Enel SpA 1H2007 Results Investor Relations Enel’s gas sales Volumes sold (bcm) Customers (thousand) -11.1% -11.1% +6.5% +6.5% 2,381 2.7 2,235 2.4 1H06 1H07 1H06 1H07 11
Slide 12: Enel's gas distribution
Enel SpA 1H2007 Results Investor Relations Enel’s gas distribution Volumes distributed (bcm) End users (thousand) -21.7% -21.7% +3.4% +3.4% 1,973 2,040 2.3 1.8 1H06 1H07 1H06 1H07 12
Slide 13: EBITDA evolution (€mn)
Enel SpA 1H2007 Results Investor Relations EBITDA evolution (€mn) +101 +101 +254 -213 4,361 -39 +53 +46 4,462 115 154 1,911 1,858 Market G&EM N&I 1,736 1,782 International 1 S&H 373 627 240 27 1H06 Market G&EM I&R International S&H 1H07 1. Including intercompany adjustments 13
Slide 14: EBITDA evolution: domestic market division (€mn)
Enel SpA 1H2007 Results Investor Relations EBITDA evolution: domestic market division (€mn) -39 -39 +82 -88 154 -33 115 1H06 Regulated Free 1H07 Other market market 14
Slide 15: EBITDA evolution: domestic G&EM division (€mn)
Enel SpA 1H2007 Results Investor Relations EBITDA evolution: domestic G&EM division (€mn) +53 +53 +101 -92 1,911 1,858 +44 1H06 Generation Fair value Non 1H07 margin Bilateral recurring contracts with SB 15
Slide 16: Fuel cost evolution
Enel SpA 1H2007 Results Investor Relations Fuel cost evolution -15.9% -15.9% 52.9 Average fuel cost 44.5 (€/MWh) 1H06 1H07 -8.1% -8.1% -9.3% -9.3% +7.2% +7.2% 304.0 27.51 58.9 63.1 279.4 24.95 1H06 1H07 1H06 1H07 1H06 1H07 Oil Oil(€/ton) (€/ton) Gas Gas(c€/mc) (c€/mc) Coal Coal(€/ton) (€/ton) 16
Slide 17: EBITDA evolution: domestic I&N division (€mn)
Enel SpA 1H2007 Results Investor Relations EBITDA evolution: domestic I&N division (€mn) +46 +46 +116 +15 -85 1,782 1,736 1,852 1,782 1,736 1H06 Electricity Gas Other 1H07 17
Slide 18: EBITDA evolution: international division (€mn)
Enel SpA 1H2007 Results Investor Relations EBITDA evolution: international division (€mn) +254 +254 -30 +19 -14 627 +273 +4 79 4 373 -18 -10 343 60 70 Iberia 99 South-Eastern Europe Centrel 89 Russia America 144 France & Belgium 126 -14 Iberia South- Centrel Russia Americas France and Eastern Belgiu
Slide 19: EBITDA evolution: services & holding (€mn)
Enel SpA 1H2007 Results Investor Relations EBITDA evolution: services & holding1 (€mn) -213 -213 240 -156 -23 -34 27 1H06 Import Non Other 1H07 recurring 1. Including intercompany adjustments 19
Slide 20: Net debt evolution (€mn)
Enel SpA 1H2007 Results Investor Relations Net debt evolution (€mn) -13,379 -13,379 Cash flow Extra- Net FY06 from Capex ordinary financial Taxes Dividends 1H06 operations activities charges -1,520 -11,690 +3,751 -12,715 1 -308 -789 -1,798 -25,069 1. Including net debt of acquisitions 20
Slide 21: 2007 Interim dividend (€c/share)
Enel SpA 1H2007 Results Investor Relations 2007 Interim dividend (€c/share) 20 20 Paid on 23 November 2006 22 November 2007 21
Slide 22: Agenda
Enel SpA Investor Relations Agenda 2007 Interim result Q&A Annexes 22
Slide 23: Net Production: Geographical breakdown
Enel SpA Annexes – 1H2007 Results Investor Relations Net Production : Geographical breakdown (GWh) 1H06 1H07 % Italy 53,144 46,038 -13.4 Spain 3,253 3,044 -6.4 Bulgaria 1,329 1,607 20.9 Slovakia 4,023 11,126 176.6 N America 764 721 -5.6 S America 422 1,308 210.0 Total 62,935 63,844 1.4 23
Slide 24: Net production: source breakdown
Enel SpA Annexes – 1H2007 Results Investor Relations Net production : source breakdown Oil & Gas Other (GWh) Gas CCGT Coal Nuclear Hydro ST/OCGT renewables Italy 6,911 11,121 14,075 - 2,861 11,070 Iberia 4 - 1,978 - 337 725 South-Eastern Europe - - 1,607 - - - Centrel - - 1,500 7,532 - 2,094 America
Slide 25: Domestic production mix (%)
Enel SpA Annexes – 1H2007 Results Investor Relations Domestic production mix (%) -13.4% -13.4% 53.1 TWh 46.0 TWh 15.0% 28.6% Oil & Gas 24.2% ST/OCGT 16.7% Gas CCGT Coal 30.6% Other renewables 25.6% Hydro 5.2% 6.2% 23.9% 24.0% 1H06 1H07 25
Slide 26: International production mix (%)
Enel SpA Annexes – 1H2007 Results Investor Relations International production mix (%) +81.6% +81.6% 9.8 TWh 17.8 TWh 1.0% 28.6% 39.2% Oil & Gas ST/OCGT Coal Nuclear 42.3% 25.8% Other renewables Hydro 7.3% 3.3% 26.7% 25.8% 1H06 1H07 26
Slide 27: Domestic G&EM division: CO2 emissions vs. allowances
Enel SpA Annexes – 1H2007 Results Investor Relations Domestic G&EM division: CO2 emissions vs. allowances CO2 Emissions (Mt) Allowances Deficit 1H06 22.7 3.9 26.5 1H07 21.0 1.2 22.2 27
Slide 28: International sales (TWh)
Enel SpA Annexes – 1H2007 Results Investor Relations International sales (TWh) +188% +188% 14.4 5.0 1H06 1H07 28
Slide 29: Domestic electricity distribution (TWh)
Enel SpA Annexes – 1H2007 Results Investor Relations Domestic electricity distribution (TWh) -0.3% -0.3% 126.3 125.9 1H06 1H07 Net of energy dispatched in the previous years 29
Slide 30: Income statement
Enel SpA Annexes – 1H2007 Results Investor Relations Income statement € mn 1H06 1H07 % Operating revenues 19,065 18,857 -1.1% Operating costs 14,340 14,365 0.2% EBITDA 4,361 4,462 2.3% % of revenues 22.9% 23.7% EBIT 3,565 3,134 -12.1% % of revenues 18.7% 16.6% 30
Slide 31: From EBIT to EPS
Enel SpA Annexes – 1H2007 Results Investor Relations From EBIT to EPS € mn 1H06 1H07 % EBIT 3,565 3,134 -12.1% Net financial charge - 289 88 EBT 3,276 3,222 -1.6% Net income (including third parties) 2,027 2,048 1.0% Group net income 1,978 1,982 0.2% EPS (€) 0.32 0.32 31
Slide 32: Balance sheet
Enel SpA Annexes – 1H2007 Results Investor Relations Balance sheet € mn FY06 1H07 % Net financial debt 11,690 25,069 114.4% Shareholders' equity 19,025 19,713 3.6% Net capital employed 30,715 44,782 45.8% 32
Slide 33: Debt structure
Enel SpA Annexes – 1H2007 Results Investor Relations Debt structure Average debt maturity: 6 years and 9 months Average cost of debt: 4.8% (Fixed+hedged)/Total long-term debt: 76% (Fixed+hedged)/Total net debt: 57% Rating: S&P’s = A/A-1 C.W. negative; Moody’s = A1/P-1 C.W. negative € mn FY06 1H07 %
Slide 34: Debt evolution
Enel SpA Annexes – 1H2007 Results Investor Relations Debt evolution Average cost of debt Average residual maturity 6.2% 5.9% 7:7 7:7 5.5% 5.2% 4.8% 6:4 4.7% 4.6% 4.4% 4.4% 4.3% 5:4 5:2 6:9 4:1 4:9 4:4 3:11 1 1 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1998 1999 2000 2001 2002 2003 2004 2005
Slide 35: Financial debt evolution
Enel SpA Annexes – 1H2007 Results Investor Relations Financial debt evolution €m 12.31.2005 06.30.2006 12.31.2006 06.30.2007 Bank loans – maturities > 12 months 2,782 2,975 3,677 6,428 Bonds – maturities > 12 months 8,043 8,293 8,375 13,399 Other loans – maturities > months 142 219 142 119 Long-term
Slide 36: EBIT by business area (€mn)
Enel SpA Annexes – 1H2007 Results Investor Relations EBIT by business area (€mn) -431mn -12.1% 3,565 3,134 1,421 gem 1,446 +1.8% in intl sh 1,334 mkt 1,362 +2.1% 251 454 371 +47.8% 105 -22 1H06 1H07 -23 36
Slide 37: Domestic Market division details
Enel SpA Annexes – 1H2007 Results Investor Relations Domestic Market division details € mn 1H06 1H07 % Revenues 10,776 10,617 -1.5% EBITDA 154 115 -25.3% EBIT 105 -23 -121.9% Capex 14 17 21.4% Headcount 5,176 1 5,026 -2.9% 1. As of December 31, 2006 37
Slide 38: Domestic Generation & Energy Management division details
Enel SpA Annexes – 1H2007 Results Investor Relations Domestic Generation & Energy Management division details € mn 1H06 1H07 % Revenues 7,905 7,824 -1.0% EBITDA 1,858 1,911 2.9% EBIT 1,421 1,446 1.8% Capex 316 489 54.7% Headcount 9,573 1 9,483 -0.9% 1. As of December 31, 2006 38
Slide 39: Domestic Infrastructure & Network division details
Enel SpA Annexes – 1H2007 Results Investor Relations Domestic Infrastructure & Network division details € mn 1H06 1H07 % Revenues 2,767 2,744 -0.8% Power 2,603 2,575 -1.1% Gas 164 169 3.0% EBITDA 1,736 1,782 2.6% Power 1,652 1,683 1.9% Gas 84 99 17.9% EBIT 1,334 1,362 2.1% Power 1,287 1,308 1.6% Gas
Slide 40: International activities details
Enel SpA Annexes – 1H2007 Results Investor Relations International activities details € mn 1H06 1H07 % Revenues 1,264 2,056 62.7% EBITDA 373 627 68.1% EBIT 251 371 47.8% Capex 130 313 140.8% 1 Headcount 13,861 13,683 1 -1.3% 1. As of December 31, 2006 40
Slide 41: Services & Holding details
Enel SpA Annexes – 1H2007 Results Investor Relations Services & Holding details € mn 1H06 1H07 % Revenues 1,092 995 -8.9% Holding 582 449 -22.9% Services and other 510 546 7.1% EBITDA 1 231 32 -86.1% Holding 134 -65 -148.5% Services and other 97 97 0.0% 1 EBIT 445 -17 -103.8% Holding 390 -73 -118.7%
Slide 42: Services & Holding details - Continued
Enel SpA Annexes – 1H2007 Results Investor Relations Services & Holding details - Continued € mn 1H06 1H07 % Capex 29 36 24.1% Holding 2 11 450.0% Services and other 27 25 -7.4% Headcount 5,237 1 5,141 -1.8% Holding 652 701 7.5% Services and other 4,585 4,440 -3.2% 1. As of December 31, 2006 42
Slide 43: Capex by business area (€mn)
Enel SpA Annexes – 1H2007 Results Investor Relations Capex by business area (€mn) +383mn +33.7% 1,520 17 +21.4% Market G&M I&N 489 +54.7% 14 1,137 International Services & Holding 316 665 +2.6% 648 313 +140.8% 130 +24.1% 29 36 1H06 1H07 43
Slide 44: Disclaimer
Enel SpA Investor Relations Disclaimer THESE SLIDES HAVE BEEN PREPARED BY THE COMPANY SOLELY FOR THE USE DURING THE CONFERENCE CALL ON ENEL’S 2007 INTERIM RESULTS. THE INFORMATION CONTAINED HEREIN HAS NOT BEEN INDEPENDENTLY VERIFIED. NONE OF THE COMPANY OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WH
Slide 45: Contact us
Enel SpA Investor Relations Contact us Investor Relations Team (investor.relations@enel.it) Luca Torchia (Head of IR) +39 06 83053437 Massimiliano Bevignani (Stock analysis and IR reporting) +39 06 83057023 Donatella Izzo (Buy-side) +39 06 83057449 Fausto Sblandi (Sell-side) +39 06 83052226 Visit ou