Enel SpA · MIL:ENEL
Enel SpA — 9M 2011 Earnings Presentation
46 slides from Enel SpA's earnings presentation, Nov 9, 2011
Slide 1: 9M2011 Results
Enel SpA Investor Relations 9M2011 Results November 9, 2011
Slide 2: Index
Enel SpA Investor Relations Index • 9M2011 Results • Annexes 1
Slide 3: 9M11 electricity demand vs. Plan assumptions
Enel SpA 9M2011 results Investor Relations 9M11 electricity demand vs. Plan assumptions Electricity demand1 9M2011 Electricity demand 2010-2015 CAGR Italy +1.7% Italy +1.5% Spain2 Spain2 +1.7% -1.0% (4) (4) Russia +2.6% +1.9% Russia +1.4% +2.3% Slovakia +0.8% Slovakia +1.9% Latam3,4 +5.6% Latam3,4 +
Slide 4: Financial highlights: consolidated
Enel SpA 9M2011 results Investor Relations Financial highlights: consolidated €mn 9M10 9M11 % Revenues 52 972 52,972 57 496 57,496 +8 5 +8.5 EBITDA 13,265 13,284 +0.1 - recurring g 1 13,265 , 12,867 , -3.0 EBIT 8,929 9,014 +1.0 Group net income 3,449 3,492 +1.2 Group net ordinary income 3,449 3,234
Slide 5: From EBIT to Net Income
Enel SpA 9M2011 results Investor Relations From EBIT to Net Income €mn 9M10 9M11 % EBIT 8,929 9,014 +1.0 Net financial charges (2,640) (2,338) -11.4 Interest charges 2,139 2,053 -4.0 Other 501 285 -43.1 Net et income co e from o equity equ ty investments est e ts using equity method 6 78 n.m. EBT 6,
Slide 6: Focus on forward electricity sales
Enel SpA 9M2011 results Investor Relations Focus on forward electricity sales Level of total production hedged (%) Italy Spain 100 100 100 100 ~ 20 ~ 30-25 ~ 80(1) ~ 70-75 2011(1) 2012 2011 2012(2) Latam Slovakia 100 100 100 100 ~ 25-20 ~ 30-25 ~ 75-80 ~ 70-75 2011 2012 2011 2012 Unhedged Hedged 1.
Slide 7: Group EBITDA evolution (€mn)
Enel SpA 9M2011 results Investor Relations Group EBITDA evolution (€mn) +0.1% 13,265 -216 +165 +303 -4 -468 +217 +22 13,284 105 127 966 1,183 6,030 5,562 S&H1 EGP Iberia & Latam 1,200 1,204 International I&N Market 2,826 3,129 G&EM 281 446 1,853 1,637 1 9M10 G&EM Market M k t I&N Inter- I t Iberia I
Slide 8: EBITDA evolution: G&EM Italy (€mn)
Enel SpA 9M2011 results Investor Relations EBITDA evolution: G&EM Italy (€mn) -11.6% 1,853 -255 +169 1,637 -69 -61 9M10 Generation Trading Ancillary Other 9M11 margin margin services 7
Slide 9: EBITDA evolution: Market Italy (€mn)
Enel SpA 9M2011 results Investor Relations EBITDA evolution: Market Italy (€mn) +58.9% +8 8 446 +157 281 9M10 Free Regulated g 9M11 market market 8
Slide 10: EBITDA evolution: Infrastructure & Networks Italy (€mn)
Enel SpA 9M2011 results Investor Relations EBITDA evolution: Infrastructure & Networks Italy (€mn) +10.7% +198 +132 3,129 2,826 -27 9M10 Energy Connection Other 9M11 margin fees 9
Slide 11: EBITDA evolution: International (€mn)
Enel SpA 9M2011 results Investor Relations EBITDA evolution: International (€mn) -0.3% 1,204 , -84 +93 1,200 , -7 -6 275 368 39 33 266 259 Russia France & Belgium SEE 624 Centrel 540 9M10 Centrel1 SEE2 France Russia 9M11 & Belgium3 1. Slovenské Elektrárne 2. Romanian, Bulgarian and Greek operations
Slide 12: Focus on Russia
Enel SpA 9M2011 results Investor Relations Focus on Russia1 Unitary price2 (€/MWh) Capacity payment3 (€/MW per month) 23.2 2,964 19.6 2,717 9M10 9M11 9M10 9M11 Dark spread (€/MWh) Spark spread (€/MWh) 10.4 8.2 3.1 2.0 9M10 9M11 9M10 9M11 1. Average 9M11 exchange rate: 40.5 Rub/Eur 2. Average price e
Slide 13: EBITDA evolution: Endesa - Iberia (€mn)
Enel SpA 9M2011 results Investor Relations EBITDA evolution1: Endesa - Iberia (€mn) -9.8% 3,561 -282 +115 -180 3,214 9M10 Generation Distribution Other 9M11 & supply 1. Enel’s GAAP figures 12
Slide 14: EBITDA evolution: Endesa - Latam (€mn)
Enel SpA 9M2011 results Investor Relations EBITDA evolution1: Endesa - Latam (€mn) -4.9% 2,469 +4 +39 -102 -62 2,348 9M10 Generation Distribution Other Forex 9M11 effect 1. Enel’s GAAP figures 13
Slide 15: EBITDA evolution: Enel Green Power (€mn)
Enel SpA 9M2011 results Investor Relations EBITDA evolution: Enel Green Power (€mn) +22.5% +165 1,183 +69 +22 -5 165 966 -34 8 13 85 63 226 295 Enel.si North America 664 Iberia and Latin America 630 Italy and Europe 9M10 Italy and Iberia and North Enel.si Other 9M11 Europe Latin America America 14
Slide 16: Net debt evolution (€mn)
Enel SpA 9M2011 results Investor Relations Net debt evolution (€mn) -2 843 -2,843 (1) December 31, Cash-flow Capex Net financial Taxes Dividends3 Extra- September 30, 2010 from operations charges2 ordinary 2011 activities4 -44,924 -47,767 -4,757 -2,330 -636 (5) +8,115 -1,195 -2,496 +431 -25 (5) 1. N
Slide 17: Index
Enel SpA Investor Relations Index • 9M2011 Results • Annexes 16
Slide 18: Production mix (TWh)
Enel SpA 9M2011 results - Operational annexes Investor Relations Production mix (TWh) -2.6% 61.6 60.0 3.1% 1.4% 21.6% 22.3% Group production mix 33.7% 38.6% Italy +1.2% 6.8% 7.6% 216.9 219.5 34.8% 30.1% 15 7% 15.7% 13 1% 13.1% 9M10 9M11 12.9% 16.6% +2.7% 25.3% 28.8% 14.0% 13.3% 155.3 159.5 3.8% 4.1%
Slide 19: 9M2011 Group total net installed capacity: breakdown by source and location
Enel SpA 9M2011 results - Operational annexes Investor Relations 9M2011 Group total net installed capacity1: breakdown by source and location MW Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 13,756 1,360 - 6,804 5,964 12,022 39,906 Iberia 4,685 1,650 3,526 5,472 4,748(2) 4,939(3)
Slide 20: 9M2011 Group total net production: breakdown by source and location
Enel SpA 9M2011 results - Operational annexes Investor Relations 9M2011 Group total net production1: breakdown by source and location GWh Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 18,041 4,544 - 23,204 13,394 863 60,046 Iberia 5,392 2,547 18,480 19,751 6,316(2) 7,441(3) 59,927
Slide 21: 9M2011 renewables net installed capacity: breakdown by source and location
Enel SpA 9M2011 results - Operational annexes Investor Relations 9M2011 renewables net installed capacity: breakdown by source and location MW Hydro Geothermal Wind Other TOTAL Italy & Europe 1,525 728 1,022 53 3,328 Iberia & Latam 701 - 1,554 121 2,376 North America 313 47 405 21 786 TOTAL 2,539 77
Slide 22: 9M2011 renewables net production: breakdown by source and location
Enel SpA 9M2011 results - Operational annexes Investor Relations 9M2011 renewables net production: breakdown by source and location GWh H d o Hydro Geothe mal Geothermal Wind Othe Other TOTAL Italy & 4,555 3,970 1,029 13 9,567 Europe Iberia & 2,545 - 2,238 351 5,134 Latam North 804 187 987 132 2 110
Slide 23: Group EBITDA: regulated/unregulated activities
Enel SpA 9M2011 results - Financial annexes Investor Relations Group EBITDA: regulated/unregulated activities 9M11 EBITDA 13,284 €mn Stability and high visibility 49% 9% 42% Forward sales and hedging procurement contracts to protect Unregulated margin Regulated EGP 22
Slide 24: Enel's long-term debt maturity profile (€mn)
Enel SpA 9M2011 results - Financial annexes Investor Relations Enel’s Enel s long long-term term debt maturity profile (€mn) Endesa Enel Group (excluding Endesa) 30,747 4Q2011 9M2012 3,627 Bonds 453 2,133 Bank loans and others 387 7 776 7,776 27,120 10,749 5,341 5,412 3,950 4,604 661 1,079 641 5,408
Slide 25: Enel Group liquidity analysis (€mn)
Enel SpA 9M2011 results - Financial annexes Investor Relations Enel Group liquidity analysis (€mn) Amount Outstanding Available Committed credit lines 25,795 11,069 14,726(1) Cash and cash equivalents - (4,266) 4,266 Total 25,795 6,803 18,992 Uncommitted lines 3 494 3,494 1 893 1,893 1,601 Commercia
Slide 26: Debt structure
Enel SpA 9M2011 results - Financial annexes Investor Relations Debt structure1 • Average debt maturity: 6 years and 4 months • Average cost of gross debt2: 4.9% • (Fixed+hedged)/Total gross long-term debt: 76% • (Fixed+hedged)/Total net debt: 86% • Rating: S&P’s = A-/A-2 Negative outlook; Moody’s =
Slide 27: Enel's group financial debt evolution
Enel SpA 9M2011 results - Financial annexes Investor Relations Enel’s Enel s group financial debt evolution1 Enel Group p((excluding g Endesa) ) Endesa Group p - Total €mn 12.31.2010 09.30.2011 12.31.2010 09.30.2011 09.30.2011 Bank loans – maturities > 12m 10,778 7,606 4,806 1,710 9,316 Bonds – matu
Slide 28: Enel's group financial debt by subsidiary
Enel SpA 9M2011 results - Financial annexes Investor Relations Enel’s Enel s group financial debt by subsidiary1 €mn Enel SpA Endesa EFI2 EIH2 Slovenské EP2 ED2 Other Total Bonds 15,341 6,465 15,068 297 - - - 222 37,393 Bank loans 4,361 5,373 2,509 - 818 627 2,152 1,437 17,277 Preference shares - 17
Slide 29: Enel's group financial debt
Enel SpA 9M2011 results - Financial annexes Investor Relations Enel’s Enel s group financial debt Average cost of net debt Average cost of gross debt Average residual maturity (years:months) 5.8% 7:1 5.5% 6:8 4.9% 5.0% 4.6% 4.6% 6:4 (1) (1) (1) 2009 2010 2011 2009 2010 2011 2009 2010 2011 Net financ
Slide 30: Enel's long-term debt maturity profile (€mn)
Enel SpA 9M2011 results - Financial annexes Investor Relations Enel’s Enel s long long-term term debt maturity profile (€mn) Enel Group (excluding Endesa) €mn <12m 4Q2012 2013 2014 2015 After 2015 Bank loans 4,298 254 406 2,219 1,451 3,276 Bonds 1,071 41 1,658 2,081 2,471 23,606 Other 39 6 36 33 41
Slide 31: Enel Group liquidity analysis excluding Endesa (€mn)
Enel SpA 9M2011 results - Financial annexes Investor Relations Enel Group liquidity analysis excluding Endesa (€mn)1 Amount Outstanding Available 60M credit facility for Endesa acquisition 1,933 1,933 - 2009 credit facility for Endesa acquisition (2014) 1,359 1,359 - 2009 credit facility for Endesa
Slide 32: Endesa liquidity analysis (€mn)
Enel SpA 9M2011 results - Financial annexes Investor Relations Endesa liquidity analysis (€mn)1 Amount Outstanding Available Total committed credit lines 7,192 , 2,858 , 4,334 , Other short-term bank debt – uncommitted lines 1,330 6 1,324 Total credit lines 8,522 2,864 5,658 Commercial paper issued
Slide 33: EBITDA evolution - Services & Holding (€mn)
Enel SpA 9M2011 results - Financial annexes Investor Relations EBITDA evolution - Services & Holding1 (€mn) +22 +21 127 +1 105 9M10 Import Other 9M11 1. Including Engineering and Innovation division and intercompany adjustments 32
Slide 34: Capex by business area (€mn)
Enel SpA 9M2011 results - Financial annexes Investor Relations Capex by business area (€mn)1 +15.9% 4,665 30 4 025 4,025 1,033 45 593 1,425 1,386 S&H 779 979 EGP Iberia & Latam International 784 I&N 934 Market 27 40 G&EM 411 224 9M10 9M11 1. Continuing operations, gross of connection fees. 33
Slide 35: Balance sheet
Enel SpA 9M2011 results - Financial annexes Investor Relations Balance sheet €mn FY10 9M11 % Net financial debt 44 924 44,924 47 767 47,767 +6 3 +6.3 Shareholders’ equity 53,866 53,320 -1.0 Net capital p employed p y 98,790 , 101,087 , +2.3 34
Slide 36: Generation & Energy Management - Italy
Enel SpA 9M2011 results - Financial annexes Investor Relations Generation & Energy Management - Italy €mn 9M10 9M11 % Revenues 12,417 15,346 +23.6 EBITDA 1,853 1,637 -11.7 EBIT 1 445 1,445 1 197 1,197 -17.2 17 2 Capex 411 224 -45.5 (1) Headcount 6 601 6,601 6 453 6,453 -2 2 -2.2 1. As of December 31
Slide 37: Market - Italy
Enel SpA 9M2011 results - Financial annexes Investor Relations Market - Italy €mn 9M10 9M11 % Revenues 13,649 12,932 -5.3 EBITDA 281 446 +58.7 EBIT 82 220 +168 3 +168.3 Capex 27 40 +48.1 (1) Headcount 3 823 3,823 3 787 3,787 -0 9 -0.9 1. As of December 31st, 2010 36
Slide 38: Infrastructure & Network - Italy
Enel SpA 9M2011 results - Financial annexes Investor Relations Infrastructure & Network - Italy €mn 9M10 9M11 % Revenues 5,168 5,415 +4.8 EBITDA 2,826 3,129 +10.7 EBIT 2 153 2,153 2 442 2,442 +13 4 +13.4 Capex 784 934 +19.1 (1) Headcount 19 152 19,152 19 104 19,104 -0 3 -0.3 1. As of December 31st,
Slide 39: International
Enel SpA 9M2011 results - Financial annexes Investor Relations International €mn 9M10 9M11 % Revenues 4,754 5,650 +18.8 EBITDA 1,204 1,200 -0.3 EBIT 762 771 +1 2 +1.2 Capex 779 979 +25.7 (1) Headcount 14 876 14,876 14 206 14,206 -4 5 -4.5 1. As of December 31st, 2010 38
Slide 40: Iberia & Latam
Enel SpA 9M2011 results - Financial annexes Investor Relations Iberia & Latam €mn 9M10 9M11 % Revenues 22,646 24,029 +6.1 EBITDA 6,030 5,562 -7.8 EBIT 3 748 3,748 3 450 3,450 -8.0 80 Capex 1,386 1,425 +2.8 (1) Headcount 24 731 24,731 23 004 23,004 -7 0 -7.0 1. As of December 31st, 2010 39
Slide 41: Enel Green Power
Enel SpA 9M2011 results - Financial annexes Investor Relations Enel Green Power €mn 9M10 9M11 % Revenues 1,517 1,859 +22.5 EBITDA 966 1,183 +22.5 EBIT 719 889 +23 6 +23.6 Capex 593 1,033 +74.2 (1) Headcount 2 955 2,955 3 167 3,167 +7 2 +7.2 1. As of December 31st, 2010 40
Slide 42: Services & Holding
Enel SpA 9M2011 results - Financial annexes Investor Relations Services & Holding1 €mn 9M10 9M11 % Revenues 1,723 1,684 -2.3 Holding 484 514 +6.2 Services 786 878 +11 7 +11.7 Engineering & Innovation 453 292 -35.5 EBITDA2 105 127 +21.0 Holding (16) (42) - Services 117 160 +36.8 Engineering & Innovat
Slide 43: Services & Holding - Continued
Enel SpA 9M2011 results - Financial annexes Investor Relations Services & Holding1 - Continued € €mn 9M10 9M11 % EBIT2 20 45 +125.0 Holding (21) (49) - Services 40 88 +120.0 Engineering & Innovation 11 5 -54.5 Capex 45 30 -33.3 Holding 2 3 +50.0 Services & other 41 25 -39.0 Engineering & Innovation
Slide 44: EBIT by business area (€mn)
Enel SpA 9M2011 results - Financial annexes Investor Relations EBIT by business area (€mn) +1.0% 8,929 9,014 20 45 +125.0% 719 889 +23.6% 23 6% 3,748 3 450 3,450 -8.0% 8 0% EGP 762 771 +1.2% Iberia & Latam International I&N Market 2,153 2,442 +13.4% G&EM S&H1 82 +168.3% 220 1,445 1,197 -17.2% 9M10 9
Slide 45: Disclaimer
Enel SpA Investor Relations Disclaimer This presentation may contain certain statements that are neither reported financial results nor other historical information (“forward-looking statements”). These forward-looking statements are based on Enel S.p.A.’s current expectations and projections about
Slide 46: Contact us
Enel SpA Investor Relations Contact us Investor Relations Team (investor.relations@enel.com) • Luca Torchia (Head of IR) +39 06 83053437 • Pedro Cañamero (Equity IR) +39 06 83055292 • Elisabetta Ghezzi (Fixed income IR) +39 06 83052708 Visit our website at: www.enel.com (Investor Relations) 45