Enel SpA · MIL:ENEL
Enel SpA — 9M2009 Earnings Presentation
56 slides from Enel SpA's earnings presentation, Nov 4, 2009
Slide 1: 9M2009 Results
Enel SpA Investor Relations 9M2009 Results November 04, 2009
Slide 2: Agenda
Enel SpA Investor Relations Agenda • Strategic update F. Conti • 9M2009 results L. Ferraris • Annexes 1
Slide 3: Cash flow optimisation (excluding Endesa): Zenith
Enel SpA Strategic update Investor Relations Cash flow optimisation (excluding Endesa): Zenith Total pre-tax cash flow optimisation U Working capital optimisation 2009-2011 ~2,700 Other 19% 27% International best Working practice sharing capital 12% Credit management optimisation Inventory ~1,300 19
Slide 4: Cash flow optimisation: Enel-Endesa's synergy programme
Enel SpA Strategic update Investor Relations Cash flow optimisation: Enel-Endesa’s synergy programme1 > 1000 813 717 613 436 266 Already achieved 326 2008 2009 2010 2011 2012 2012 updated Synergy programme well on track 1. EBITDA and capex 3
Slide 5: Disposals: Impact on net debt
Enel SpA Strategic update Investor Relations Disposals Impact on net debt Current status Delivered: ••HV 1.2€bn • Closed on April 1, 2009 HVgrid gridin inItaly Italy ••Gas Gasdistribution distributionnetwork network 1.2€bn • Closed on September 30, 2009 (80% stake) (80% stake) ••Severenergia 0.5€bn
Slide 6: Agenda
Enel SpA Investor Relations Agenda • Strategic update F. Conti • 9M2009 results L. Ferraris • Annexes 5
Slide 7: Financial highlights: consolidated
Enel SpA 9M2009 results Investor Relations Financial highlights: consolidated €mn 9M08 9M09 9M08 % restated Revenues 45,302 45,314 45,687 +0.8 EBITDA 11,312 11,228 12,486 +11.2 - recurring1 11,098 11,014 12,121 +10.1 EBIT 8,184 7,838 8,823 +12.6 Group net income 4,982 4,813 4,711 -2.1 Net debt 49,96
Slide 8: Financial highlights: 9M2009 pro-forma EBITDA
Enel SpA 9M2009 results Investor Relations Financial highlights: 9M2009 pro-forma EBITDA +1,187 13,308 12,486 -365 9M09 Capital gain Full 9M09 reported on disposals consolidation pro-forma EBITDA of Endesa1 EBITDA 1. 100% of Endesa - Enel’s GAAP 7
Slide 9: From EBIT to net income
Enel SpA 9M2009 results Investor Relations From EBIT to net income €mn 9M08 9M08 9M09 % restated EBIT 8,184 7,838 8.823 +12.6 Net financial charges (2,277) (2,255) (1,006) -55.4 2,269 2,247 1,820 -19.0 Interest charges Fair value of Acciona’s put option (17) (17) (970) n.m. Other 25 25 156 n.m. Net
Slide 10: Group EBITDA breakdown: 9M2008 restated
Enel SpA 9M2009 results Investor Relations Group EBITDA breakdown: 9M2008 restated €mn 9M08 9M08 9M09 % restated G&EM - Italy 3,405 2,829 2,682 -5.2 Market - Italy 324 330 268 -18.8 I&N - Italy 2,884 2,802 2,833 +1.1 International 778 734 1,094 +49.0 Iberia&Latam 3,839 3,667 4,518 +23.2 Enel Green P
Slide 11: Group EBITDA: regulated/unregulated activities
Enel SpA 9M2009 results Investor Relations Group EBITDA: regulated/unregulated activities Group Production Mix 9M09 EBITDA 195.8 TWh 15.5% 38% 7% 12.2% 26.9% 55% 12.0% 30 3.8% Unregulated Regulated 29.6% EGP 2010 forward sales: 2010 forward sales: Group average >70% 9M091 Group average >70% Coal Oil
Slide 12: Focus on forward electricity sales
Enel SpA 9M2009 results Investor Relations Focus on forward electricity sales Level of total production hedged (%) Unhedged Hedged Italy Spain 100 100 100 100 ~6 ~40 ~20% ~94 ~60 2009 2010 2009 2010 Latam Slovakia 100 100 100 100 ~30-25 ~35-30 ~70-75 ~65-70 2009 2010 2009 2010 2010 forward sales : G
Slide 13: Group EBITDA evolution (€mn)
Enel SpA 9M2009 results Investor Relations Group EBITDA evolution (€mn) +11.2% +851 +100 +125 12,486 207 11,228 -147 -62 +31 +360 884 82 784 4,518 3,667 734 1,094 S&H1 EGP 2,802 Iberia & Latam International 2,833 I&N 330 Market 268 G&EM 2,829 2,682 9M08 G&EM Market I&N Inter- Iberia & EGP S&H1 9M09
Slide 14: EBITDA evolution - G&EM Italy (€mn)
Enel SpA 9M2009 results Investor Relations EBITDA evolution - G&EM Italy (€mn) -5.2% +147 -201 2,829 +133 -323 +97 2,682 9M08 Generation Gas Ancillary Trento Other 9M09 margin sales services capital gain recorded in 3Q2008 13
Slide 15: G&EM – Italy: fuel cost evolution
Enel SpA 9M2009 results Investor Relations G&EM – Italy: fuel cost evolution -13.0% 60.6 53.0 Average fuel cost (€/MWh) 9M08 9M09 -11.0% -14.0% -6.0% 384.8 32.3 30.4 100.4 89.6 331.8 9M08 9M09 9M08 9M09 9M08 9M09 Oil (€/ton) Gas (c€/mc) Coal (€/ton) 14
Slide 16: EBITDA evolution - Market Italy (€mn)
Enel SpA 9M2009 results Investor Relations EBITDA evolution - Market Italy (€mn) -18.8% 330 -54 -8 268 9M08 Free Regulated 9M09 market market 15
Slide 17: EBITDA evolution - I&N Italy (€mn)
Enel SpA 9M2009 results Investor Relations EBITDA evolution - I&N Italy (€mn) +1.1% +74 -46 +3 2,833 2,802 9M08 Energy Connection Other 9M09 margin fees 16
Slide 18: EBITDA evolution - International (€mn)
Enel SpA 9M2009 results Investor Relations EBITDA evolution - International (€mn) +49.0% +161 1,094 +19 196 +159 +22 57 734 173 35 38 151 Russia1 France & Belgium 670 SEE 511 Centrel 9M08 Centrel SEE France Russia1 9M09 & Belgium 1. Including 68€mn capital gain on the sale of Severenergia 17
Slide 19: Focus on Russia
Enel SpA 9M2009 results Investor Relations Focus on Russia2 Unit price1 (€/MWh) Capacity payment (€/MW per month) 2,500 2,230 14.2 13.6 9M08 9M09 9M08 9M09 Dark spread (€/MWh) Spark spread (€/MWh) 3.6 3.6 0.6 0.7 9M08 9M09 9M08 9M09 1. Average price excluding capacity payment 18 2. Average 2009 exch
Slide 20: EBITDA evolution: focus on Endesa
Enel SpA 9M2009 results Investor Relations EBITDA evolution: focus on Endesa1 +3.1% 5,521 -68 +207 +34 5,694 42 8 2,186 2,393 Other Latam 3,327 Iberia 3,259 9M08 Iberia Latam Other 9M09 1. Endesa 100% - Enel’s GAAP figures 19
Slide 21: EBITDA evolution: focus on Enel Green Power (€mn)
Enel SpA 9M2009 results Investor Relations EBITDA evolution: focus on Enel Green Power (€mn) +12.8% +102 +3 -6 +1 884 784 671 569 883 International Italy 215 213 9M08 Italy Americas Spain Other 9M09 20
Slide 22: Net debt evolution (€mn)
Enel SpA 9M2009 results Investor Relations Net debt evolution (€mn) -4,1041 December Cash-flow from Capex2 Net financial Taxes Dividends Extraordinary September 31, 2008 operations charges3 activities 30, 2009 -49,967 -49,992 -52,144 -54,071 Discontinued operations Discontinued -795 -4,264 -1,820 +8
Slide 23: Enel's long-term debt maturity profile (€mn)
Enel SpA 9M2009 results Investor Relations Enel’s long-term debt maturity profile (€mn) Endesa Enel Group (excluding Endesa) Actual 9M09 9M09 adjusted1 35,981 33,775 5,562 5,562 12,327 30,419 28,213 11,074 4,710 2,638 4,887 3,504 2,638 4,887 4,710 3,504 802 802 7,617 1,632 1,632 1,846 493 3,386 1,84
Slide 24: Agenda
Enel SpA Investor Relations Agenda • Strategic update F. Conti • 9M2009 results L. Ferraris • Annexes 23
Slide 25: Production mix
Enel SpA 9M2009 results - Operational annexes Investor Relations Production mix -12.9% 73.1 (TWh) 63.7 (TWh) 9.7% 5.7% Group production mix 18.3% 26.6% Domestic 32.5% +4.7% Domestic 30.6% 6.4% 5.9% 187.0 (TWh) 195.8 (TWh) 37.1% 27.2% 12.6% 15.5% 9M08 9M09 17.8% 12.2% +16.0% 26.5% 26.9% 13.3% 12.0% 3
Slide 26: 9M2009 group installed capacity: breakdown by source and location
Enel SpA 9M2009 results - Operational annexes Investor Relations 9M2009 group installed capacity: breakdown by source and location MW Hydro RES Nuclear Coal CCGT Oil & gas TOTAL - other ST/OCGT Italy 14,431 1,090 - 6,212 5,946 12,698 40,377 Iberia 4,794 1,232 3,641 5,804 2,1971 6,4932 24,161 Centrel
Slide 27: 9M2009 group net production: breakdown by source and location
Enel SpA 9M2009 results - Operational annexes Investor Relations 9M2009 group net production: breakdown by source and location GWh Hydro RES Nuclear Coal CCGT Oil & gas TOTAL - other ST/OCGT Italy 23,660 4,052 - 20,695 11,704 3,616 63,727 Iberia 5,343 2,095 13,868 12,523 4,7781 7,3932 46,000 Centrel
Slide 28: Enel Green Power Capacity & Production
Enel SpA 9M2009 results Investor Relations Enel Green Power Capacity & Production1 France Enel Green Power MW (+n.m.) Total MW (+11.2%) 9M08 9M09 9M08 9M09 8 28 4,225 4,697 NorthAmerica TWh (+n.m.) Total TWh (+11.6%) 9M08 9M09 MW (+37.5%) 9M08 9H09 Romania-Bulgaria 12.9 14.4 0.005 0.025 9M08 9M09 MW
Slide 29: Generation mix - Italy
Enel SpA 9M2009 results - Operational annexes Investor Relations Generation mix - Italy 63,727 3,616 11,704 40,377 20,695 12,698 5,946 4,052 6,212 1,090 23,660 14,431 Capacity (MW) Production (GWh) Other renewables Coal Oil & gas1 Hydro CCGT 1. Including turbogas 28
Slide 30: Generation mix - Centrel & South Eastern Europe
Enel SpA 9M2009 results - Operational annexes Investor Relations Generation mix - Centrel & South Eastern Europe Slovakia Greece 14,957 1.948 209 5,295 9.553 148 1.250 1.712 3 2.329 4 3.453 Capacity (MW) Production (GWh) Capacity (MW) Production (GWh) Bulgaria 2,415 2,413 777 Other renewables Coal 7
Slide 31: Generation mix – Russia, North America & France
Enel SpA 9M2009 results - Operational annexes Investor Relations Generation mix – Russia, North America & France Russia 27,245 North America 1,709 13,605 963 788 8,198 13,640 474 4,575 746 3,623 314 Capacity (MW) Production (GWh) Capacity (MW) Production (GWh) France 28 25 Other renewables Coal Oil
Slide 32: Electricity and gas
Enel SpA 9M2009 results - Operational annexes Investor Relations Electricity and gas Electricity (TWh) Gas (bcm) 1.1% 6.7% 3.5% Sales: 39.7% Breakdown by country 42.3% 46.4% 60.3% Electricity (TWh) Gas (bcm) 3.4% 7.7% Distribution: 34.0% Breakdown by country 62.6% 92.3%1 Italy Iberia e Latam SEE Rus
Slide 33: Italian electricity sales market
Enel SpA 9M2009 results - Operational annexes Investor Relations Italian electricity sales market1 Regulated market2 (TWh) Free market3 (TWh) Enel’s free customers4 (thousand) -5.9% 167.3 +2.4% 157.4 -10.9% 41.3 2,695.1 -8.7% 42.3 1,966.4 73.1 -11.5% 65.1 126.0 115.1 62.7 55.5 -7.7% 10.4 9.6 9M08 9M
Slide 34: Enel's electricity and gas distribution
Enel SpA 9M2009 results - Operational annexes Investor Relations Enel’s electricity and gas distribution Volumes distributed in Italy1 (TWh) Volumes distributed abroad (TWh) +6.5% -7.2% 195.0 180.9 108.2 101.6 9M08 9M09 9M08 9M09 Volumes distributed (bcm)2 Gas end users (thousand)2 +7.9% -3.7% 2,279
Slide 35: Enel's gas sales
Enel SpA 9M2009 results - Operational annexes Investor Relations Enel’s gas sales Volumes sold (bcm) Customers (thousand) +18.4% 3,781 5.8 5.8 3,194 1,066 1.8 2.3 579 4.0 2,615 2,715 3.5 9M08 9M09 9M08 9M09 Italy International 34
Slide 36: EBITDA evolution - Services & Holding (€mn)
Enel SpA 9M2009 results – Financial annexes Investor Relations EBITDA evolution - Services & Holding1 (€mn) +n.m. +124 207 82 +1 9M08 Import Other 9M09 1. Including Engineering and Innovation division 35
Slide 37: EBIT by business area (€mn)
Enel SpA 9M2009 results – Financial annexes Investor Relations EBIT by business area (€mn) +12.6% 8,823 n.a. 7,838 127 715 +10.5% 647 S&H1 EGP 2,915 +28.9% Iberia & Latam 2,262 International I&N Market 400 651 +62.8% G&EM 2,165 2,203 +1.8% 130 50 -61.5% 2,237 2,162 -3.4% -3 9M08 9M09 1. Including En
Slide 38: Balance sheet
Enel SpA 9M2009 results – Financial annexes Investor Relations Balance sheet €mn December 31, September 30, 2008 2009 % Net financial debt 49,967 54,071 +8.2 Shareholders’ equity 26,295 42,170 +60.4 Net capital employed 76,262 96,241 +26.2 37
Slide 39: Debt structure
Enel SpA 9M2009 results – Financial annexes Investor Relations Debt structure • Average debt maturity: 6 years and 7 month • Average cost of debt1: 4.6% • (Fixed+hedged)/Total long-term debt: 72% • (Fixed+hedged)/Total net debt: 68% • Rating: S&P’s = A-/A-2 Stable outlook; Moody’s = A2/P-1 Negative
Slide 40: Enel's group financial debt evolution as of September 30, 2009
Enel SpA 9M2009 results – Financial annexes Investor Relations Enel’s group financial debt evolution as of September 30, 2009 Enel Group (excluding Endesa) Endesa1 Group - Total €mn 12.31.2008 09.30.2009 12.31.2008 09.30.2009 09.30.2009 Bank loans – maturities > 12m 25,867 16,294 3,525 8,063 24,357
Slide 41: Enel's group financial debt by subsidiary as of September 30, 2009
Enel SpA 9M2009 results – Financial annexes Investor Relations Enel’s group financial debt by subsidiary as of September 30, 2009 €mn Enel SpA Endesa EFI EIH Slovenské EP ED Other Total Bonds 13,598 6,412 8,928 522 194 - - 149 29,803 Bank loans 7,465 8,668 4,771 - 106 719 2,025 1,521 25,275 Preferre
Slide 42: Enel's group financial debt
Enel SpA 9M2009 results – Financial annexes Investor Relations Enel’s group financial debt Average cost of debt Average residual maturity 5.2% 5.5% 4.7% 5.1% 7:7 7:7 4.4% 4.4% 4.3% 4.6% 4.6% 6:4 6:7 5:10 5:2 4:11 4:9 4:4 1 1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2001 2002 2003 2004 2005 2006
Slide 43: Enel's long-term debt maturity profile (€mn)
Enel SpA 9M2009 results – Financial annexes Investor Relations Enel’s long-term debt maturity profile (€mn) Enel Group (excluding Endesa) €mn <12m IIIQ2010 2011 2012 2013 After 2013 Bank loans 313 113 352 6,517 342 8,970 Bonds 453 165 1,126 1,070 1,504 19,073 Other 26 31 23 30 26 170 Total 792 309 1
Slide 44: Enel Group liquidity analysis excluding Endesa (€mn)
Enel SpA 9M2009 results – Financial annexes Investor Relations Enel Group liquidity analysis excluding Endesa (€mn) September 30, 2009 Amount Outstanding Available 60M credit facility for Endesa acquisition 6,154 6,154 - 2009 credit facility for Endesa acquisition (2014) 4,324 4,324 - 2009 credit fa
Slide 45: Endesa liquidity analysis (€mn)
Enel SpA 9M2009 results – Financial annexes Investor Relations Endesa liquidity analysis (€mn) September 30, 2009 Amount Outstanding Available Total committed credit lines 9,823 2,929 6,894 Other short-term bank debt – uncommitted lines 1,237 353 884 Total credit lines 11,060 3,282 7,778 Commercial
Slide 46: Generation & Energy Management - Italy
Enel SpA 9M2009 results – Financial annexes Investor Relations Generation & Energy Management - Italy €mn 9M08 9M08 9M09 % restated Revenues 17,262 16,532 13,640 -17.5 EBITDA 3,405 2,829 2,682 -5.2 EBIT 2,735 2,237 2,162 -3.4 Capex 815 606 503 -17.0 Headcount 6,8291 6,8291 6,678 -2.2 1. Reported fig
Slide 47: Market - Italy
Enel SpA 9M2009 results – Financial annexes Investor Relations Market - Italy €mn 9M08 9M08 9M09 % restated Revenues 16,658 16,556 15,406 -6.9 EBITDA 324 330 268 -18.8 EBIT 123 130 50 -61.5 Capex 27 27 43 +59.3 Headcount 4,1701 4,1701 4,006 -3.9 1. Figure as of December 31, 2008 46
Slide 48: Infrastructure & Network - Italy
Enel SpA 9M2009 results – Financial annexes Investor Relations Infrastructure & Network - Italy €mn 9M08 9M08 9M091 % restated Revenues 4,912 4,722 5,069 +7.3 EBITDA 2,884 2,802 2,833 +1.1 EBIT 2,176 2,165 2,203 +1.8 Capex 1,032 958 762 -20.5 Headcount 20,3941,2 20,3941,2 19,865 -2.6 1. Excluding as
Slide 49: International
Enel SpA 9M2009 results – Financial annexes Investor Relations International €mn 9M08 9M08 9M09 % restated Revenues 3,280 3,198 4,047 +26.5 EBITDA 778 734 1,094 +49.0 EBIT 422 400 651 +62.8 Capex 652 396 671 +69.4 Headcount 16,8651 16,8651 16,107 -4.4 1. Figure as of December 31, 2008 48
Slide 50: Iberia & Latam
Enel SpA 9M2009 results – Financial annexes Investor Relations Iberia & Latam €mn 9M08 9M08 9M09 % restated Revenues 12,417 12,136 14,388 +18.6 EBITDA 3,839 3,667 4,518 +23.2 EBIT 2,731 2,262 2,915 +28.9 Capex 1,550 1,454 1,515 +4.2 Headcount 17,8271 17,8271 26,526 +48.8 1. Figure as of December 31,
Slide 51: Enel Green Power
Enel SpA 9M2009 results – Financial annexes Investor Relations Enel Green Power €mn 9M08 9M08 9M09 % restated Revenues - 1,305 1,259 -3.5 EBITDA - 784 884 +12.8 EBIT - 647 715 +10.5 Capex - 562 564 +0.4 Headcount - 2,4321 2,686 +10.4 1. Figure as of December 31, 2008 50
Slide 52: Services & Holding
Enel SpA 9M2009 results – Financial annexes Investor Relations Services & Holding €mn 9M08 9M08 9M09 % restated Revenues 2,130 2,130 1,948 -8.5 Holding 509 509 514 +1.0 Services & other 843 843 779 -7.6 Engineering & Innovation 778 778 655 -15.8 EBITDA 82 82 207 n.m. Holding (36) (36) 56 n.m. Servic
Slide 53: Services & Holding - Continued
Enel SpA 9M2009 results – Financial annexes Investor Relations Services & Holding - Continued 9M08 €mn 9M08 9M09 % restated Capex 53 53 51 -3.8 Holding 6 6 1 -83.3 Services & other 47 47 49 +4.3 Engeneering & Innovation - - 1 n.m. Headcount 6,1751 6,1751 6,152 -0.4 Holding 749 749 722 -3.6 Services
Slide 54: Focus on capex by business area (€mn)
Enel SpA 9M2009 results – Financial annexes Investor Relations Focus on capex by business area(€mn)1 +1.3% D&A 4,056 4,109 3,393 53 51 77 169 562 564 1,529 1,454 1,515 396 426 671 958 630 762 27 41 43 606 503 519 S&H 9M08 9M09 9M09 EGP Iberia & Latam International I&N Market G&EM 53 1. Continuing op
Slide 55: Disclaimer
Enel SpA Investor Relations Disclaimer This presentation contains 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 fut
Slide 56: 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 +39 06 83055292 • Donatella Izzo +39 06 83057449 • Federica Todaro +39 06 83059502 • Angela Tretola +39 06 83052062 Visit our website at: www.enel