Slide 1: Endesa 1H 2012 results
27 | 07 | 2012 endesa 1H 2012 results
Slide 2: Market context 1H 2012
consolidated results 1H 2012 Market context 1H 2012 Demand Spain(1) Endesa distribution area Latam countries where Endesa operates average growth weighted by TWh Latin Spain: +5.5% adjusted +0.8% Industry -1.8% America: solid demand 6.3% growth in all Services +0.1% 5.9% 5.9% decrease due countries
Slide 3: Stable operating results despite market conditions
consolidated results 1H 2012 Stable operating results despite market conditions €M 1H 2012 1H 2011 Change Revenues 16,696 16,194 +3% Gross margin 5,336 5,314 +0% EBITDA 3,547 3,493 +2% Spain&Portugal&Others 2,040 2,064 -1% Endesa Latin America(1) 1,507 1,429 +5% EBIT(2) 2,404 2,468 -3% Net finance e
Slide 4: On track to achieve efficiency and synergy targets with Enel
consolidated results 1H 2012 On track to achieve efficiency and synergy targets with Enel for FY 2012 Synergy plan with Enel Zenith plan with Enel Savings for Endesa Savings for Endesa €M 909 100% €M 207 100% Distribution 36% Distribution 59% Generation & energy management 32% Generation & energy Ac
Slide 5: Strengthening our financial position
consolidated results 1H 2012 Strengthening our financial position Net debt evolution in 1H 2012 (€M) 11,002 2,251 365 168 426 114 10,467 871 1.4x Enersis 3,883 Pending 4,567 regulatory 1.4x 4,896 assets Tariff Def(1): -€1,040 M Securitization(2): €675 M Spain& Portugal 7,119 &others 5,900 1.5x Debt
Slide 6: Spain: regulation facts in 1H 2012
consolidated results 1H 2012 Spain: regulation facts in 1H 2012 Full Fullyear yearimpact impact Decrease of distribution remuneration - €278 M RDL 10% reduction on national coal volumes - €9 M RDL13/2012 13/2012 10% reduction on capacity payments - €9 M Decrease of remuneration of non-mainla
Slide 7: Endesa proposals for a balanced energy reform in Spain
consolidated results 1H 2012 Endesa proposals for a balanced energy reform in Spain • A number of measures are possible that properly combined would provide a sound solution to the deficit issue: • A carbon tax (or green cent) on other CO2 emitting sectors • Application of the “reasonable return” cr
Slide 8: Latam: regulation facts in 1H 2012
consolidated results 1H 2012 Latam: regulation facts in 1H 2012 Coelce: tariff review and readjustment update: • Positive legal ruling concerning tax benefits (SUDENE) Brazil Brazil CIEN Permitted Annual Revenue (RAP) update: • Approved 5% increase for 2012-2013 period Chilectra: ongoing tarif
Slide 9: Corporate transactions
consolidated results 1H 2012 Corporate transactions Sales agreement signed with SSE subject to approval by regulatory & Endesa EndesaIreland Ireland antitrust authorities disposal disposal Transaction to be completed in 3Q 2012 Base price: €270 M subject to adjustments Acquisition Acquisitiono
Slide 10: Spain&Portugal&Others 1H 2012
spain&portugal&others 1H 2012
Slide 11: Highlights in 1H 2012
spain&portugal&others 1H 2012 Highlights in 1H 2012 Regulated business: negatively impacted by latest regulatory measures (RDL 13/2012 and RDL 20/2012) Better liberalized margin supported by higher generation output (+15%[1]) and selling prices Fixed costs cut by 4% (- €46 M) through efficiency prog
Slide 12: Stable operating results despite economic environment and latest regulatory measures
spain&portugal&others 1H 2012 Stable operating results despite economic environment and latest regulatory measures €M 1H 2012 1H 2011 Change Revenues 11,445 11,230 +2% Gross margin 3,148 3,197 -2% EBITDA 2,040 2,064 -1% EBIT(1) 1,269 1,329 -5% Net finance expenses(2) 127 164 -23% Net attributable in
Slide 13: Resilient margins
spain&portugal&others 1H 2012 Resilient margins €M +7% 3,197 3,148 -8% -2% 1H 2011 Liberalized business Regulated business 1H 2012 Higher sale price to final customer Social bonus (Supreme Court ruling) Impact of RDL 13/2012 and RDL 20/2012 Generation mix (production/energy purchases) Higher energy
Slide 14: Liberalized business supported by higher generation output and selling prices
spain&portugal&others 1H 2012 Liberalized business supported by higher generation output and selling prices Market margins evolution: wholesale price Strong increase in mainland output(1) vs. price to end customers +15% 32,761 €/MWh GWh 2,164 CCGT 62 €/MWh 28,467 60 56 €/MWh 3,246 8,261 Imported coa
Slide 15: Energy management optimization
spain&portugal&others 1H 2012 Energy management optimization Gross electricity sources Gross electricity sales 62 TWh 62 TWh LRT Auctions (2) 14 14 LRT (2) Energy purchases 7 Pool sales Unit purchase cost €51/MWh 15 51% 39 TWh 41 Liberalized Mainland ordinary regime including 33 non-mainland Unit fu
Slide 16: Latin America 1H 2012
latin america 1H 2012
Slide 17: Highlights in 1H 2012
endesa latin america 1H 2012 Highlights in 1H 2012 Solid increase in distribution sales (+5%) with outstanding performance in Brazil (+7%)(1), Chile (+6%) & Peru (+5%) Increase in generation output (+2%) with better hydro in Brazil, Colombia and Chile (still below average) CIEN EBITDA: €42 M in 1H 2
Slide 18: Solid operating results supported by balanced & diversified portfolio
endesa latin america 1H 2012 Solid operating results supported by balanced & diversified portfolio €M 1H 2012 1H 2011 Change Revenues 5,251 4,964 +6% Gross margin 2,188 2,117 +3% EBITDA 1,507 1,429 +5% EBIT(1) 1,135 1,139 0% Net finance expenses(2) 251 169 +49% Net income 572 695 -18% Net attributab
Slide 19: Chile: higher generation and higher distribution volumes
endesa latin america 1H2012 Chile: higher generation and higher distribution volumes Generation output Distribution sales GWh +4% Generation output increased +6% thanks to higher hydro output (+16%) 9,554 9,188 Solid growth in distribution 6,726 7,121 sales 1H 2011 1H 2012 1H 2011 1H 2012 Gx EBI
Slide 20: Brazil: positive results supported by higher generation and distribution activity
endesa latin america 1H 2012 Brazil: positive results supported by higher generation and distribution activity Generation output Distribution sales +7% GWh Higher generation (+75%) supported by better hydro output and higher thermal dispatch 9,474 10,139 +75% Weather conditions supported higher
Slide 21: Colombia: outstanding performance even stripping out net worth tax in 2011
endesa latin america 1H 2012 Colombia: outstanding performance even stripping out net worth tax in 2011 Generation output Distribution sales +16% +3% GWh Strong increase in generation due to better hydro conditions 6,396 6,305 6,523 Solid growth in distribution 5,510 sales 1H 2011 1H 2012 1H 201
Slide 22: Peru: stable results
endesa latin america 1H 2012 Peru: stable results Generation output Distribution sales -6% GWh +5% Stable hydro output and lower thermal generation 4,984 4,675 Strong economic growth led 3,276 3,448 to 5% increase in demand 1H 2011 1H 2012 1H 2011 1H 2012 Gx EBITDA Dx EBITDA €M -5% Gx: higher
Slide 23: Argentina: worsening situation due to unsustainable regulatory conditions
endesa latin america 1H 2012 Argentina: worsening situation due to unsustainable regulatory conditions Generation output Distribution sales GWh -15% +2% Despite better hydro, thermal output decreases due to planned outages and 8,717 8,539 8,672 lower dispatch 7,390 Slowdown in distribution sales
Slide 24: Latam restructuring to consolidate an investment platform (I)
consolidated results 1H 2012 Latam restructuring to consolidate an investment platform (I) Transfer of Endesa’s direct holdings in Latam to Enersis Enersis EnersisCapital Capital Valuation supported by an independent appraisal: US$4,862 M Increase Increase Equivalent cash contribution by Eners
Slide 25: Latam restructuring to consolidate an investment platform (II)
consolidated results 1H 2012 Latam restructuring to consolidate an investment platform (II) Significant Significantdirect direct Endesa holdings Endesa holdings centralized centralizedinin Enersis Enersis Total EBITDA 2011: €573 M 3 M clients / ca. 2,000 MW Enersis BoD to call for the EGM to set t
Slide 26: Final remarks 1H 2012
final remarks 1H 2012
Slide 27: Final remarks
final remarks 1H 2012 Final remarks Solid results in Latin America compensate negative regulatory in Spain Effective delivery from efficiency and synergies programmes with Enel Consolidation possibility of the investment platform in Latam Further structural, balanced, and non-discriminatory measures
Slide 28: Appendices 1H 2012
appendices 1H 2012
Slide 29: Installed capacity and output
appendices 1H 2012 Installed capacity and output(1) Spain& Endesa Latin MW at 30/06/12 Portugal&Others America Total Total 24,285 15,820 40,105 Hydro 4,716 8,666 13,382 Nuclear 3,681 - 3,681 Installed Coal 5,805 522 6,327 capacity Natural gas 4,857 3,968 8,825 Oil-gas 5,226 2,577 7,803 CHP/Renewable
Slide 30: Latin America: generation and distribution figures
appendices 1H 2012 Latin America: generation and distribution figures Generation Output Distribution Sales GWh GWh +2.1% 30,386 +4.6% 35,903 29,751 34,320 7,390 -15% Argentina 8,672 8,718 8,539 +2% 2.371 +75% 1.352 Brazil 10,139 +7% 9,474 9,187 9,554 +4% Chile 6,726 7,121 +6% 5,510 6,396 +16% Colomb
Slide 31: Latin America: Ebitda break down by country and business nature
appendices 1H 2012 Latin America: Ebitda break down by country and business nature Ebitda Generation Ebitda Distribution +11%(2) 781 €M 734 €M 699 702 69 23 -67% 355 0% 108 -5%(1) 121 +12% Argentina 355 153 -39% Brazil 252 134 +13% Chile 278 119 +60% 174 Colombia 245 +57% 156 131 124 Peru -5% 73 74
Slide 32: Endesa (excl. Enersis): financial debt maturity calendar
appendices 1H 2012 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 30 June 2012: €7,050 M(1) Bonds (2) Bank debt and others ECPs and domestic commercial paper (3) 2,956 Endesa's Endesa's 2,411 liquidity liquidityexcl. excl. Enersis Enersis 1,013 co
Slide 33: Enersis: financial debt maturity calendar
appendices 1H 2012 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 30 June 2012: €5,475 M(1) Bonds Bank debt and others 2,816 417 Enersis Enersishas has sufficient sufficient liquidity liquidityto to 898 2,399 cover cover 807 18 months 18 months 447 313 507 253 o
Slide 34: Financial policy and net debt structure
appendices 1H 2012 Financial policy and net debt structure Structure of Endesa's net debt ex-Enersis Enersis net debt structure €M €M 5,900 5,900 US$ 1% 4,567 4,567 Floating 44% Floating 48% Other 47% Euro 99% Chilean Peso 15%(1) Fixed 56% Fixed 52% US$ 38% By interest rate By currency By interest r
Slide 35: Well on track on forward sales strategy
appendices 1H 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 65-70% and risk exposure 35-40% 2012 2013 2012 2013 31% of the generation so
Slide 36: Endesa has major direct holdings in companies other than Enersis in Latin America
appendices 1H 2012 Endesa has major direct holdings in companies other than Enersis in Latin America Proportionate Proportionate €M % direct 1H 2012 30.06.2012 stake EBITDA Net debt 60.6% Codensa 26.7% 64 118 Emgesa 21.6% 60 180 Direct holdings Endesa Brasil 28.5% 146 -27 Ampla(1) 7.7% 15 40 60% Ede
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 1H 2012
consolidated results 1H 2012 38