Endesa S.a. · BME:ELE
Endesa — Q1 2012 Earnings Presentation
38 slides from Endesa's earnings presentation, May 9, 2012
Slide 1: Endesa 1Q 2012 results
09 | 05 | 2012 endesa 1Q 2012 results
Slide 2: Market context in 1Q 2012
consolidated results 1Q 2012 Market context in 1Q 2012 Demand Spain Endesa distribution area Latam countries where Endesa operates average growth weighted by TWh Latin Spain: demand Industry -0.7% +6.5% America: solid decrease +0.8% 7.7% growth in all Services -0.6% 6.6% 6.4% 6.4% countries mainly d
Slide 3: Stable operating results despite market conditions
consolidated results 1Q 2012 Stable operating results despite market conditions €M 1Q 2012 1Q 2011 Change Revenues 8,647 8,363 +3% Gross margin 2,708 2,735 -1% EBITDA 1,827 1,775 +3% Spain&Portugal&Others 1,040 1,094 -5% Endesa Latin America(1) 787 681 +16% EBIT(2) 1,256 1,318 -5% Net finance expens
Slide 4: Regulation update in Spain
consolidated results 1Q 2012 Regulation update in Spain LR LRTPA TPAevolution evolution 2011 2012 IV Q IQ II Q III Q IV Q TPA increase as quarterly decided Retroactive TPA increase to be rebilled starting from April 1st Real increase paid by 40% customer 25% Total TPA increase paid by clients: 25% (
Slide 5: Regulation update in Spain: tariff deficit securitization
consolidated results 1Q 2012 Regulation update in Spain Tariff Tariffdeficit deficitsecuritization securitization €3.3 bn securitized in 1Q 2012: Securitized Securitizedinin1Q 1Q 2012 2012 €1.7 bn for Endesa • Presently first tranche transferred to FADE in July 2010 (€13.7 bn) completely securit
Slide 6: Regulation update in Spain: measures to reduce tariff deficit
consolidated results 1Q 2012 Regulation update in Spain Measures Measuresdecided decidedon on30/03/2012 30/03/2012to toreduce reducethe thetariff tariffdeficit deficit (€M) IMPACT Distribution 689 National coal 46 Capacity payments 84 Transmission 197 CNE and IDAE 673 Others(1) 76 Total 1,765 (1) To
Slide 7: Regulation update in Spain
consolidated results 1Q 2012 Regulation update in Spain Structural Structuraland andbalanced balancedmeasures measuresneeded neededto toeliminate eliminatetariff tariffdeficit deficit Transmission 1.5 Distribution • Structural and balanced €Bn ~ 36.6 5.0 €19.2 bn measures should be focused on: (52%)
Slide 8: Latam Regulation update
consolidated results 1Q 2012 Latam Regulation update Tariff review and readjustment in Coelce: • Concluded in April 2012: 14% reduction in distribution value added mainly influenced by the reduction of WACC, for lower country risk, and economies of scale • Effects will apply retroactively from Apr
Slide 9: Latam Regulation update: Argentina
consolidated results 1Q 2012 Latam Regulation update: Argentina Generation: Asset • Hydro: 1,328 MW (Chocon) Assetportfolio portfolio • Thermal: 3,194 MW (Costanera & Docksud) Distribution: 2.3 million clients in Buenos Aires (Edesur) Total risk: 130 € M after 166 € M value adjustment in Dec.
Slide 10: On track to achieve efficiency and synergy targets for FY 2012
consolidated results 1Q 2012 On track to achieve efficiency and synergy targets for FY 2012 Synergy plan Zenith plan €M €M 909 100% 207 100% Distribution Distribution 32% 58% Generation & energy management 34% Generation & energy IT & Others management Achieved in 247 34% Achieved in 50 42% 1Q 2012
Slide 11: Strengthening our financial position
consolidated results 1Q 2012 Strengthening our financial position Net debt evolution in 1Q 2012 (€M) 11,002 1,277 593 9,607 6 1 1.3x Enersis 3,883 404 78 3,927 Pending Tariff Def(1): -€82 M 1.2x 4,184 regulatory assets Securitization(2): €675 M Spain& Portugal 7,119 &others 5,680 1.4x Debt net of 5,
Slide 12: Spain&Portugal&Others 1Q 2012
spain&portugal&others 1Q 2012
Slide 13: Highlights in 1Q 2012
spain&portugal&others 1Q 2012 Highlights in 1Q 2012 Weak electricity demand(1) based on current economic environment Higher generation output (+20%)(2) with lower hydro (-55%) compensated by higher thermal output (+41%) Liberalized business: higher generation output and selling prices mitigate highe
Slide 14: Stable operating results despite economic environment and new regulatory measures
spain&portugal&others 1Q 2012 Stable operating results despite economic environment and new regulatory measures €M 1Q 2012 1Q 2011 Change Revenues 6,031 5,922 +2% Gross margin 1,584 1,642 -4% EBITDA 1,040 1,094 -5% EBIT(1) 658 767 -14% Net finance expenses 61 53 +15% Net attributable income 475 524
Slide 15: Resilient margins
spain&portugal&others 1Q 2012 Resilient margins €M 1,642 1,584 -1% -6% -4% 1Q 2011 Liberalized business Regulated business 1Q 2012 Higher sale prices to final customer Social bonus (Supreme Court ruling) Distribution (Impact of RDL 13/2012) Domestic coal vs. 1Q 2011 (only March) Higher energy cost M
Slide 16: Higher generation output reduces energy purchases needs
spain&portugal&others 1Q 2012 Higher generation output reduces energy purchases needs Market margins evolution: wholesale price Strong increase in mainland output(1) vs. price to final customers GWh +20% 62 €/MWh 17,600 60 57 €/MWh 1,635 CCGT 14,653 50 53 €/MWh 1,774 47 €/MWh 7,682 Coal 40 4,814 30
Slide 17: Margin optimization thanks to competitive generation mix and leadership in supply
spain&portugal&others 1Q 2012 Margin optimization thanks to competitive generation mix and leadership in supply activity Gross electricity sources Gross electricity sales 33 TWh 33 TWh Energy purchases 7 4 Pool sales Unit purchase cost €54/MWh 8 LRT (2) LRT Auctions (2) 8 51% Mainland ordinary regim
Slide 18: Latin America 1Q 2012
latin america 1Q 2012
Slide 19: Highlights in 1Q 2012
endesa latin america 1Q 2012 Highlights in 1Q 2012 Strong increase in distribution sales (+6%) with outstanding performance in Chile (+7%), Brazil (+6%)(1) & Peru (+6%) Increase in generation output (+4%) with strong hydro recovery in Brazil and Colombia Generation in Chile: still affected by dry co
Slide 20: Solid operating results supported by balanced & diversified portfolio
endesa latin america 1Q 2012 Solid operating results supported by balanced & diversified portfolio €M 1Q 2012 1Q 2011 Change Revenues 2,616 2,441 +7% Gross margin 1,124 1,093 +3% EBITDA 787 681 +16% EBIT(1) 598 551 +9% Net finance expenses 126 100 +26% Net income 328 324 +1% Net attributable income
Slide 21: Chile: margins affected by negative one-offs in generation
endesa latin america 1Q 2012 Chile: margins affected by negative one-offs in generation & higher distribution sales Generation output Distribution sales GWh 0% Stable generation with higher +7% hydro output (+7%) but still 4,874 4,875 below average 3,564 Outstanding growth in 3,338 distribution
Slide 22: Brazil: good results supported by regulated activities
endesa latin america 1Q 2012 Brazil: good results supported by regulated activities Generation output Distribution sales GWh +6% Higher generation (+75%) due to higher hydro in Cachoeira and higher dispatch in Fortaleza 4,842 5,155 +75% Extraordinary demand in Coelce (+12%). Ampla (+2%) 976 557
Slide 23: Colombia: outstanding performance stripping out last year net worth tax
endesa latin america 1Q 2012 Colombia: outstanding performance stripping out last year net worth tax negative effect GWh Generation output Distribution sales +5% +12% Increase in generation due to better hydro conditions 2,743 3,073 3,113 3,262 Higher distribution sales 1Q 2011 1Q 2012 1Q 2011 1
Slide 24: Peru: higher sale prices in generation and higher activity in distribution
endesa latin america 1Q 2012 Peru: higher sale prices in generation and higher activity in distribution Generation output Distribution sales -5% GWh Stable hydro output and +6% lower thermal generation (Ventanilla) 2,493 2,378 1,632 1,735 Strong economic growth led to 6% increase in demand 1Q 20
Slide 25: Argentina: unsustainable regulatory conditions
endesa latin america 1Q 2012 Argentina: unsustainable regulatory conditions Generation output Distribution sales GWh +4% -1% Output in line with 1Q 2011 4,364 4,333 4,345 4,536 Increase in distribution sales 1Q 2011 1Q 2012 1Q 2011 1Q 2012 €M Gx EBITDA Dx EBITDA Gx: pending capacity -59% payme
Slide 26: Conclusions 1Q 2012
conclusions 1Q 2012
Slide 27: Final remarks
consolidated results 1Q 2012 Final remarks Focus on regulatory matters remains a priority Structural, balanced, transparent, non discriminatory, technically sound measures needed in Spain to eliminate tariff deficit Solid operating results in Iberia considering weak demand and regulatory measures St
Slide 28: Appendices 1Q 2012
appendices 1Q 2012
Slide 29: Installed capacity and output
appendices 1Q 2012 Installed capacity and output(1) Spain& Endesa Latin MW at 31/03/12 Portugal&Others America Total Total 24,262 15,817 40,079 Hydro 4,716 8,666 13,382 Nuclear 3,681 - 3,681 Installed Coal 5,804 522 6,326 capacity Natural gas 4,856 4,395 9,251 Oil-gas 5,204 2,148 7,352 CHP/Renewable
Slide 30: Latin America: generation and distribution figures
appendices 1Q 2012 Latin America: generation and distribution figures Generation Output Distribution Sales GWh GWh +4.0% 15,635 +5.7% 18,252 15,031 17,270 4,333 -1% Argentina 4,536 4,345 +4% 4,364 976 +75% Brazil 557 5,155 +6% 4,842 4,875 Chile 4,874 +0% 3,338 3,564 +7% 3,073 Colombia 2,473 +12% 3,1
Slide 31: Chile: 1Q12 Gx affected by non-recurrent items. Colombia: 1Q11 net-worth tax
appendices 1Q 2012 Chile: 1Q12 Gx affected by non-recurrent items. Colombia: 1Q11 net-worth tax Ebitda Generation Ebitda Distribution €M 380 419 356 39 +33%(2) 16 -59% 52 -6%(1) 316 54 +4% 203 +25% 4 Argentina 84 -52% 176 Brazil 162 67 +10% Chile 136 +147% 61 55 Colombia 122 +118% 56 58 66 +14% Peru
Slide 32: Endesa (excl. Enersis): financial debt maturity calendar
appendices 1Q 2012 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 31 March 2012: €7,131 M(1) Bonds (2) Bank debt and others ECPs and domestic commercial paper (3) 3,882 Endesa's Endesa's 1,779 liquidity liquidityexcl. excl. Enersis Enersis 828 1,5
Slide 33: Enersis: financial debt maturity calendar
appendices 1Q 2012 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 31 March 2012: €5,338 M(1) Bonds Bank debt and others 2,398 284 Enersis Enersishas has sufficient sufficient liquidity liquidityto to cover cover 858 850 2,114 25 months 25 months 765 296 467 of o
Slide 34: Financial policy and net debt structure
appendices 1Q 2012 Financial policy and net debt structure Structure of Endesa's net debt ex-Enersis Enersis net debt structure €M €M 5,680 5,680 Floating 11% US$ 1% 3,927 3,927 Hedged 3% Floating 43% Other 50% Euro 99% Fixed 86% Chilean Peso 8%(1) Fixed 57% US$ 42% By interest rate By currency By i
Slide 35: Well on track on forward sales strategy
appendices 1Q 2012 Well on track on forward sales strategy Spain & Portugal Latin America (% estimated mainland output hedged) (% estimated output hedged) 100% Contracting level in 75-80% Latin America that optimizes margin and risk exposure 60-65% 30-35% 2012 2013 2012 2013 34% of the generation so
Slide 36: Major direct holdings in companies other than Enersis in Latin America
appendices 1Q 2012 Endesa has major direct holdings in companies other than Enersis in Latin America Proportionate Proportionate €M % direct 1Q 2012 31.03.2012 stake EBITDA Net debt 60.6% Codensa 26.7% 32 71 Emgesa 21.6% 29 150 Direct holdings Endesa Brasil 28.5% 78 -11 Ampla(1) 7.7% 8 41 60% Edesur
Slide 37: 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 38: Consolidated results 1Q 2012
consolidated results 1Q 2012 38