Slide 1: Endesa 9M 2020 Consolidated results
Endesa 9M 2020 Consolidated results November 04, 2020
Slide 2: 9M 2020 Consolidated results
9M 2020 Consolidated results José Bogas CEO
Slide 3: Key highlights of the period
Key highlights of the period EBITDA Public Responsibility Covid-19 Efficiency plans Solid results performance Plan Liberalized Gaining Net Ordinary Progressing EBITDA Business flexibility for Income in our increased by proves its future increases by commitment +8% resiliency challenges 38% (1) to so
Slide 4: Market context in 9M 2020
Market context in 9M 2020 Demand decrease and declining commodities lead to lower pool prices Demand in Spain, TWh(1) -6% 187.4 176.0 -3% -13% -3% 64.1 62.2 59.5 51.8 63.8 62.0 Q1 2019 Q1 2020 Q2 2019 Q2 2020 Q3 2019 Q3 2020 9M 2019 9M 2020 Average pool prices, €/MWh 54.9 34.9 -36% 48.7 23.2 -52% 46
Slide 5: Power operational highlights
Power operational highlights Mainland Installed capacity and production(1), GW Energy sold(2), TWh Customers, mn Production (TWh) -7% -10% 2019 9M 2020 37.5 34.5 18.3 73.7 17.0 10.0 66.4 6.8 6.6 + 0.8 GW 9.9 Liberalized 5.8 5.7 +13% 7.4 9.9 14.3 14.2 20.2 3.3 3.3 19.5 Regulated 4.8 4.8 49.4 42.3 10.
Slide 6: Decarbonization
Decarbonization Growth in renewable generation capacity Gross pipeline(1) of renewable projects, GW • 65% Solar • Gross pipeline: 25.7 GW, 6.9 GW with connection points. • 35% Wind • 65% of net pipeline is devoted to solar technology Net pipeline 6.9 GW 25.7 • Portugal auction: Awarded 99 MW (3) + ~
Slide 7: Electrification: Energy management
Electrification Energy management Liberalized sales(1), TWh Power integrated margin(1), €/MWh Output(2) hedged -11% 61.7 67.7 Unitary revenue 65.2 54.8 24.2 20.4 39.8 32.0 Variable cost(3) +19% 100% 96% 37.5 34.5 Unitary integrated margin 27.9 33.2 43% 9M 2019 9M 2020 9M 2019 9M 2020 2020 2021 2022
Slide 8: Electrification: Gas operational highlights
Electrification Gas operational highlights Volumes sold(1), TWh Key figures -12% 55.5 2019 9M 2020 Var. Wholesale business 6.8 48.8 7.7 Total customers 1.65 1.67 +1% mn Retail 48.7 41.0 Unitary margin (2) 2.3 4.0 1.7x €/MWh 9M 2019 9M 2020 Gas margin benefits from market opportunities and procuremen
Slide 9: 9M 2020 Financial results
9M 2020 Financial results Luca Passa CFO
Slide 10: Financial highlights (€mn)
Financial highlights (€mn) Net Income Net Ordinary EBITDA FFO Net Debt Income(2) 3,136 1,511 1,700 1,969 7,407 Reported +8% 9x 38% +9% +16% Like-for-like 2,993(1) +3% 9M 2019 2,898 176 1,228 1,810 6,377(3) (1) EBITDA excluding +515 €mn of provision reversal from the commitments contained in the new
Slide 11: Personnel cost provisions
Personnel cost provisions €mn Ordinary Extraordinary TOTAL -159 +515 -213 +356 +143 (1) Provision reversal from Workforce Net provision release Decarbonization plan: Net provisions effect (2) new Collective Agreement restructuring plans personnel provision 1Q 2020 3Q 2020 9M 2020 • 213 mn€ personnel
Slide 12: COVID-19 estimated impact
COVID-19 estimated impact €mn Net of Like-for-like Demand Bad debt COVID-19 3,074 9M 20 results absorb Covid-19 effects EBITDA 2,993 81 +6% Bad debt provisioning amounted to 23 mn€ mainly by D&A (1,104) 23 IFRS 9 Net In absence of COVID-19 business effects, like-for-like Ordinary 1,433 61 17 1,511 +
Slide 13: Like-for-like EBITDA evolution
Like-for-like EBITDA evolution €mn +238 €mn +8% +95 €mn +3% DYoY DYoY (1) 2,993 (like-for-like) 3,136 (reported) 2,898 -55 -80 230 +20% +18% 1,160 1,390 1,371 212 132 -38% 116 -45% 1,526 1,471 -4% 1,649 +8% (2) 9M 2019 Dx Non mainland Gx Gx+Sx 9M 2020 9M 2020 Reported Dx Non mainland Gx Gx+Sx EBITDA
Slide 14: Regulated business
Regulated business €mn Gross margin EBITDA Regulated margin: 2,172 €mn (-175 €mn) -7% -8% • Dx: -82 €mn, affected by the new 2,347 retributive parameters 1,738 1,765 2,172 1,603 116 416 212 323 132 • Non mainland: -93 €mn business still affected by regulatory inefficiencies that do not allow full co
Slide 15: Liberalized business
Liberalized business(1) €mn Gross margin EBITDA Liberalized margin: 2,225 €mn +9% (+182 €mn) +20% 2,225 • Electricity & Others: 1,942 €mn 1,390 1,371 2,043 216 (+114 €mn) 133 1,160 133 211 • Gas(2): 197 €mn (+67 €mn) 160 1,832 2,009 • Endesa X: 86 €mn (+1 €mn) 1,257 1,238 1,000 Like-for-like fixed c
Slide 16: Profit & loss
Profit & loss €mn 9M 2020 9M 2019 Δyoy EBITDA 3,136 2,898 +8% EBITDA increase +8%, benefitting from the net effect of new collective agreement application and the new personnel provisions D&A (1,104) (2,563) -57% EBIT 2,032 335 +507% Lower D&A coming from the coal impairments booked in 2019 Net Fina
Slide 17: Cash Flow
Cash Flow €mn -143 -183 -616 -164 -61 3,136 -1,301 1,969 668 (3) EBITDA Net provision Provisions Working Income Financial FFO Capex FCF (2) release (1) paid capital Taxes Expenses Previous year 2,898 n.a. -223 -634 -177 -54 1,810 -1,425 385 Delta YoY +8% n.a. -18% -3% -7% +13% +9% -9% +74% (1) See d
Slide 18: Net financial debt analysis
Net financial debt analysis €mn Gross debt Net debt evolution 7,684 7,407 6,607 277 131 Cash & Derivatives 6,377 942 230 1,567 894 668 Net debt 7,407 6,377 6,465 5,483 (1) 2019 9M 2020 2019 FCF Dividends Others 9M 2020 Regulatory working capital(2) Net debt ex-regulatory working capital ▪ Cost of De
Slide 19: Final Remarks
Final Remarks Fully committed to Resilient integrated Adapting the Strongly committed meet full year business model & company for future to our people and targets and financial strength in challenges communities dividend Covid scenario through the pandemic disease 19 9M 2020 Results - Madrid, 04 Nov
Slide 20: 9M 2020 Consolidated results Annexes
9M 2020 Consolidated results Annexes
Slide 21: Commodities spot prices
Commodities spot prices(1) Gas PVB, €/MWh CO2, €/t (1) As of 30/10/2020 9M 2020 Results - Madrid, 04 November 2020 21
Slide 22: Installed capacity and output
Installed capacity and output Total net installed capacity, MW Total gross output(1), GWh 9M 2020 FY 2019 Var. (%) 9M 2020 9M 2019 Var. (%) Mainland 17,075 19,066 -10% 34,560 37,635 -8% Renewables 7,478 7,408 1% 9,943 6,857 45% Hydro 4,749 4,748 0% 6,042 3,981 52% Wind (2) 2,377 2,308 3% 3,481 2,832
Slide 23: Profitability and credit metrics
Profitability and credit metrics Profitability(1) Return on invested capital Credit metrics +1,200 bps +100 bps -500 bps 54% 11.7% 12.7% 50% 45% 42% 1.7x 1.8x 9M 2019 9M 2020 2019 9M 2020 2019 9M 2020 Net Income/EBITDA ROIC(2) FFO(3)/Net Debt Net debt/EBITDA (1) Calculated on Net Ordinary Income 9M
Slide 24: Fixed costs evolution
Fixed costs evolution €mn -231 €mn -15.5% -34 €mn -2.3%(1,2,3) 1,492 1,468 1,434 (1) - 24 143 (2) (3) 1,261 30 Personnel costs 759 756 -7% 706 516 O&M costs 898 877 +1% 889 609 Capitalized -165 -165 costs -161 -161 9M 2019 Other 9M 2019 9M 2020 Net provision Other 9M 2020 Reported adjustment Adjuste
Slide 25: Financial debt maturity calendar
Financial debt maturity calendar €bn Gross balance of maturities(1) 5.1 ▪ Average life of debt: 4.6 years 3.6 ▪ Coverage of 18 months of debt maturities 1.5 0.0 0.0 ▪ Liquidity additional strengthening by 0.6 1,285 €mn through 4 operations 1.5 0.2 0.1 0.0 0.2 1.4 0.0 0.5 0.0 0.1 0.1 0.2 0.1 0.0 2020
Slide 26: Headcount
Headcount 2019 9M 2020 9,952 1,687 9,688 7,573 1,724 893 2,969 7,311 918 2,956 2,527 2,516 2,379 5,296 2,377 4,153 794 5,008 442 3,877 806 440 1,143 1,131 Male Female Total Male Female Total Generation & Supply Distribution Structure & others 9M 2020 Results - Madrid, 04 November 2020 26
Slide 27: Spanish power market
Spanish power market 9M 2020 Customers(1), mn Energy sold(2), TWh 18.6 29.6 151.8 172.6 38.8 30% 34% 58.7 17.7 28.6 11.0 112.9 0.9 24% 114.0 32% 11.0 20.9 19.8 0.0 0.9 1.0 Regulated 44% Free 29% Total Regulated 47% Free 32% Total Residential Business XX% Endesa market share 27 (1) Customers: CNMC “I
Slide 28: Endesa: 9M 2020 P&L
Endesa: 9M 2020 P&L €mn Gx+Sx Dx Structure Adjustments TOTAL Income 11,125 1,971 393 -530 12,959 Procurements and services -8,524 -122 -32 116 -8,562 Gross margin 2,601 1,849 361 (414) 4,397 Self-constructed assets 52 94 15 0 161 Personel expenses -365 -7 -154 10 -516 Other fixed operating expenses
Slide 29: Endesa: 9M 2019 P&L
Endesa: 9M 2019 P&L €mn Gx+Sx Dx Structure Adjustments TOTAL Income 12,905 2,057 434 -591 14,805 Procurements and services -10,392 -126 -28 131 -10,415 Gross margin 2,513 1,931 406 (460) 4,390 Self-constructed assets 50 102 13 0 165 Personel expenses -404 -211 -157 13 -759 Other fixed operating expe
Slide 30: Glossary of terms (I/II)
Glossary of terms (I/II) Reference note (#) of Consolidated Item Calculation Management Report Average cost of debt (%) Cost of gross financial debt / gross average financial debt: (104 €mn x (360/270)) / 8,044 €mn = 1.7% 4.1 (Principal x number of days of term) / (Principal in force at the end of t
Slide 31: Glossary of terms (II/II)
Glossary of terms (II/II) Reference note (#) of Consolidated Item Calculation Management Report Gross tangible (1,024 €mn) and intangible (134 €mn) Capex - IFRS 16 effect (141 €mn) - assets from Net Capex (€mn) 4.3 clients’ contributions and subsidies (97 €mn) = 920 €mn Long and short term financial
Slide 32: 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 other fact
Slide 33: IR Team
IR Team Contact us Mar Martinez Head of Investor Relations Investor Relations team Contacts Isabel Permuy Javier Hernandez Email: ir@endesa.es Francesc Trilla Juan Carlos Jimenez Phone: + 34 91 213 15 03 Sonia Herranz + 34 91 213 90 49 Paloma de Miguel Website: www.endesa.com 33