Endesa S.a. · BME:ELE
Endesa — Q1 2006 Earnings Presentation
29 slides from Endesa's earnings presentation, May 9, 2006
Slide 1: Filed by Gas Natural SDG pursuant to Rule 425
Filed by Gas Natural SDG, S.A. pursuant to Rule 425 of the Securities Act of 1933 Subject Company: Endesa, S.A. Commission File No.: 005-80961 In connection with the offer by Gas Natural SDG, S.A. (Gas Natural) to acquire 100% of the share capital of Endesa, S.A. (Endesa), Gas Natural has filed with
Slide 2: Forward-looking statements
• net debt levels and EBITDA and earnings per share growth; • dividend policy; and • timing and benefits of the offer and the combined company. These forward-looking statements are subject to a number of factors and uncertainties that could cause actual results to differ materially from those descri
Slide 3: First Quarter 2006 Results (1Q 06)
* * * * * First Quarter 2006 Results (1Q 06) 9 May 2006
Slide 4: Disclaimer and Important Legal Information
Disclaimer and Important Legal Information In connection with the offer by Gas Natural SDG, S.A. (Gas Natural) to acquire 100% of the share capital of Endesa, S.A. (Endesa), Gas Natural has filed with the United States Securities and Exchange Commission (SEC) a registration statement on Form F-4 (Fi
Slide 5: Agenda
GAS NATURAL – 1Q 06 Results Agenda 1. Highlights 2. Analysis of 1Q 06 Results 3. Conclusions 4. Update on offer for Endesa 2
Slide 6: Highlights
Highlights
Slide 7: Delivering on the outlook provided for 2006
Delivering on the outlook provided for 2006 EBITDA grows by 29% to €508 million Progress in the upstream business, through the preliminary agreement for the development of a new 10 bcm integrated LNG project in Nigeria and the acquisition of Petroleum Oil & Gas España S.A. New conditions in the gas
Slide 8: 1Q 06 results snapshot
1Q 06 results snapshot Strong financial performance, in line with 2004-2008 Strategic Plan (€ million) 1Q 06 1Q 05 Change (%) Net Sales 3,107.1 2,045.4 51.9 EBITDA 507.9 392.9 29.3 Operating Income 358.2 276.4 29.6 Net Income 276.7 238.0 16.3 Average no. of Shares (million) 447.8 447.8 - EBITDA per
Slide 9: Solid capital structure
1Q 06 results snapshot Solid capital structure¹ Debt facilities 3 Financial ratios as of March 31, 2006 31/03/06 31/03/05 (€ million) Drawn Undrawn EBITDA/Net Interest 7.5x 8.2x Commercial Banks 2,204 1,501 Institutional Banks 637 - Net Debt/EBITDA 2.1x 1.9x Capital Markets 855 2,175 2 Leverage 36.3
Slide 10: Analysis of 1Q 06 Results
Analysis of 1Q 06 Results
Slide 11: EBITDA breakdown
EBITDA breakdown Change (€ million) 1Q 06 1Q 05 (€m) (%) Distribution 330.9 292.3 38.6 13.2 Spain 217.6 210.7 6.9 3.3 LatAm 92.5 64.8 27.7 42.7 Italy 20.8 16.8 4.0 23.8 Electricity 89.1 34.9 54.2 155.3 Spain 71.0 22.1 48.9 221.3 Puerto Rico 18.1 12.8 5.3 41.4 Gas Supply 79.7 57.4 22.3 38.9 Up + Mids
Slide 12: Investments breakdown
Investments breakdown Investments (Tangible & Intangible) By Activity (€ million) 1Q 06 1Q 05 Distribution 96.5 79.9 Gas Spain 57.0 46.7 Other Distribution Supply LatAm 24.6 24.4 4% 13% 40% Italy 14.9 8.8 Electricity 104.5 163.0 Spain 100.4 160.7 Puerto Rico 4.1 2.3 Gas Supply 30.0 6.5 Electricity U
Slide 13: Distribution in Spain
1Q 06 results analysis by activity Distribution in Spain Operating figures EBITDA (€ million) 5,196 +6.6% 4,875 +4.6% +3.3% 77,762 74,372 +9.3% 59,496 54,432 210.7 217.6 (8.4%) 19,940 18,266 1Q 05 1Q 06 1Q 05 1Q 06 Tariff Sales (GWh) TPA Sales (GWh) Connections (thousands) 5.2 million gas customer c
Slide 14: Distribution in LatAm
1Q 06 results analysis by activity Distribution in LatAm Operating figures 1Q 06 EBITDA contribution 43,224 and growth by country +9.2% (Total €92.5 million) 39,580 56,977 +4.4% 54,601 Argentina Mexico €5.7m €24.6m (+67.6%) (+22.4%) +5.2% 4,801 4,563 Colombia Brazil 1Q 05 1Q 06 €24.0m €38.2m Connect
Slide 15: Distribution in Italy
1Q 06 results analysis by activity Distribution in Italy Operating figures EBITDA (€ million) 1,463 +10.2% 1,327 3,820 +7.2% 3,563 +23.8% 20.8 16.8 +13.1% 291 257 1Q 05 1Q 06 1Q 05 1Q 06 Connections (thousands) Distribution network (km) Gas activity sales (GWh) 291,000 connections (+13%) and 3,820 O
Slide 16: Electricity
1Q 06 results analysis by activity Electricity Electricity production (GWh) Electricity EBITDA (€ million) +112.4% 4,521 CO2 emission 2,129 rights +155.3% ~9 +130.0% 3,968 18.1 34.9 +41.4% 89.1 1,725 26 (0.9%) 39 +221.3% 71.0 46 185 12.8 332 329 22.1 1Q 05 1Q 06 1Q 05 1Q 06 Wind Cogeneration Spain P
Slide 17: Adapting the electricity portfolio to new market conditions
1Q 06 results analysis by activity Adapting the electricity portfolio to new market conditions Spanish electricity prices Electricity industrial portfolio (TWh/y) 85 4.7 75 4.4 3.9 65 55 1.7 45 1.1 35 01/01/06 31/01/06 28/02/06 31/03/06 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 Pool price (weekly average) Incre
Slide 18: Spanish electricity regulatory update
1Q 06 results analysis by activity Spanish electricity regulatory update New sector legislation passed in Measures adopted have had February 2006 limited impact on GAS NATURAL in 1Q 06 Sales by vertically integrated generators to regulated market Discount of cost of CO2 capped at €42.35/MWh emission
Slide 19: Up + Midstream
1Q 06 results analysis by activity Up + Midstream Up + Midstream Petroleum Oil & Gas España S.A. Greater contribution of EMPL and Improves GAS NATURAL maritime transport to EBITDA know-how in the E&P business New LNG tanker time-charter signed Unique opportunity to acquire will start operations in 2
Slide 20: Adapting the gas portfolio to new market conditions
1Q 06 results analysis by activity Adapting the gas portfolio to new market conditions Gas industrial portfolio GAS NATURAL average tariff discounts (wholesale) (TWh/y) (%) 107.7 10.8 10.7 103.7 100.3 9.7 94.3 95.5 8.9 2.7 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 Contract renewals
Slide 21: Review of the Plan for Electricity and Gas Sectors 2002-2011
1Q 06 results analysis by activity Review of the Plan for Electricity and Gas Sectors for 2002-2011 Installed CCGT capacity in Spain (GW) Peak gas demand in Spain (GWh/day) New Plan: New Plan: 29.6 +28% +93% 2,900 +184% +21% 23.2 2,390 1,503 10.4 2005 2011E 2005 2011E Government Plan Revised Governm
Slide 22: Multiproduct Offer in Spain
1Q 06 results analysis by activity Multiproduct Offer in Spain Commercial network: 884 points of sale (own, franchised and associated) GAS NATURAL continues to enjoy the benefits of a strong and well-established brand all over Spain 1.5 million eligible residential 1.5 million maintenance 1 gas cust
Slide 23: Conclusions
Conclusions
Slide 24: Conclusions
Conclusions We continue to deliver above the targets set in our 2004-2008 Strategic Plan Double-digit growth in EBITDA and Net Income based on cash generation Positive trends shown in 2005 materializing in 2006, boosting growth and profitability Solid and growing distribution business Consolidation
Slide 25: Update on offer for Endesa
Update on offer for Endesa
Slide 26: Key recent events
Key recent events 6 March GAS NATURAL’s offer acceptance period begins in Spain and US 21 March Madrid Court for Business Matters Number 3 grants an injunction to Endesa in connection with its lawsuit regarding the agreement between GAS NATURAL and Iberdrola 24 March E.ON formally requests CNE´s aut
Slide 27: Impact of the injunctions
Impact of the injunctions The processing of GAS NATURAL´s offer and the performance of the agreement with Iberdrola will be suspended while the Court reaches a decision on the merits of the Endesa lawsuit The suspension of GAS NATURAL’s offer will not stop Madrid the CNMV’s processing of E.ON’s offe
Slide 28: Creating a leading, fully integrated, global energy group
Creating a leading, fully integrated, global energy group Global integrated energy leader in high-growth markets More flexible and competitive gas procurement More balanced and competitive generation portfolio Combined management of clients and networks Sizeable synergies Attractive business mix and
Slide 29: Thank you
Thank you INVESTOR RELATIONS DEPARTMENT Av. Portal de l’Àngel, 20 08002 BARCELONA (Spain) telf. 34 934 025 891 fax 34 934 025 896 e-mail: relinversor@gasnatural.com website: www.gasnatural.com