Enel SpA · MIL:ENEL
Enel SpA — Q1 2006 Earnings Presentation
28 slides from Enel SpA's earnings presentation, May 11, 2006
Slide 1: 1Q2006 Consolidated Results
1Q2006 Consolidated Results Rome, 11 May 2006 0
Slide 2: Agenda
Agenda f Update on international activities Fulvio Conti f 1Q2006 Results Luigi Ferraris f Questions & Answers f Annexes 1
Slide 3: Agenda
Agenda f Update on international activities Fulvio Conti f 1Q2006 Results Luigi Ferraris f Questions & Answers f Annexes 2
Slide 4: Update on international activities: Enhancing our position in the Centrel area
International activities Update Slovenske Elektrarne f Acquisition finalised on April 28, 2006 f Cash consideration: 840€mn (66% of the equity) Muntenia Sud f Binding offer submitted on May 9, 2006 f Customers: 1.1mn f Serving the Bucharest metropolitan area Enhancing our position in the Centrel are
Slide 5: Agenda
Agenda f Update on international activities Fulvio Conti f 1Q2006 Results Luigi Ferraris f Questions & Answers f Annexes 4
Slide 6: Operational data: Italian generation market
1Q2006 Results Operational data: Italian generation market Generation & import (TWh) 1Q2005 1Q2006 % Total demand 83.2 85.6 2.9% (1) Total net production 71.9 80.4 11.8% Enel net production 28.2 28.6 1.6% Others net production 43.7 51.8 18.5% Total import 13.9 7.4 -46.7% Source: Terna (1) Including
Slide 7: Operational data: Italian electricity market
1Q2006 Results Operational data: Italian electricity market Electricity sales(1) (TWh) 1Q2005 1Q2006 % Total market sales 77.8 80.1 2.9% Enel sales 38.5 37.5 -2.7% Others sales 39.3 42.6 8.4% Electricity distribution (TWh) 1Q2005 1Q2006 % Enel 63.0 64.6 2.5% (1) Net of losses on the grid 6
Slide 8: Operational data: Enel's gas activities
1Q2006 Results Operational data: Enel’s gas activities Gas sales(1) 1Q2005 1Q2006 % Enel sales (bcm) 2.2 2.1 -3.7% Enel gas customers (thousands) 1,997 2,205 10.4% Gas distribution (bcm) 1Q2005 1Q2006 % Enel 1.8 1.8 0.1% (1) Excluding thermal generation 7
Slide 9: Operational data: Enel's international activities
1Q2006 Results Operational data: Enel’s international activities Generation (GWh) 1Q2005 1Q2006 % Net production 3,603 3,362 -6.7% Distribution and sales (GWh) 1Q2005 1Q2006 % Electricity sales 1,250 2,540 103.2% Electricity distribution 1,281 3,233 152.4% 8
Slide 10: Highlights: Stable and sound growth
1Q2006 Results Highlights €mn 1Q2005(1) 1Q2006 % Revenues 8,409 10,074 19.8% Ebitda 2,017 2,107 4.5% Group net income 768 842 9.6% Net debt 12,312 10,544 -14.4% Stable and sound growth (1) Revenues and EBITDA are restated. Net debt as of December 31, 2005 9
Slide 11: Financial data: EBITDA evolution (€mn)
1Q2006 Results Financial data: EBITDA evolution (€mn) +45 2,107 2,017 +9 -4 -30 +70 Gen. & Energy 920 911 Mgmt Infrastr. & 846 Network 850 Market 51 81 International 106 176 Services & 69 114 Holding(1) 1Q2005 Gen. & Infrastr. Market International Services & 1Q2006 Energy & Network Holding(1) Mgmt I
Slide 12: Financial data: Net debt evolution (€mn)
1Q2006 Results Financial data: Net debt evolution (€mn) Down 1,768mn December Cash flow Capex Extra- Net March 31, 31, 2005 from ordinary financial 2006 operations activities charges -500 +372 -131 -10,544 -12,312 +2,027 11
Slide 13: Agenda
Agenda f Update on international activities Fulvio Conti f 1Q2006 Results Luigi Ferraris f Questions & Answers f Annexes 12
Slide 14: Agenda
Agenda f Update on international activities Fulvio Conti f 1Q2006 Results Luigi Ferraris f Questions & Answers f Annexes 13
Slide 15: Income statement
Annexes Income statement (€mn) 1Q2005(1) 1Q2006 % Operating revenues 8,409 10,074 19.8% Operating costs 6,392 7,967 24.6% EBITDA 2,017 2,107 4.5% % of revenues 24% 21% EBIT 1,488 1,583 6.4% % of revenues 18% 16% (1) Restated 14
Slide 16: From EBIT to EPS
Annexes From EBIT to EPS (€mn) 1Q2005(1) 1Q2006 % EBIT 1,488 1,583 6.4% Net financial charges -189 -131 -30.7% EBT 1,299 1,452 11.8% Net income continuing operations 765 875 14.4% Net income discontinued operations 34 - Net income (including third parties) 799 875 9.5% Group net income 768 842 9.6%
Slide 17: Balance sheet
Annexes Balance sheet (€mn) 31.12.2005 31.03.2006 % Net financial debt 12,312 10,544 -14.4% Shareholders' equity 19,416 20,348 4.8% Net capital employed 31,728 30,892 -2.6% 16
Slide 18: EBIT by business area (€mn)
Annexes EBIT by business area (€mn) +95mn 1,583 +6.4% 1,488 Gen. & Energy 687 +6.7% Mgmt 644 Infrastr. & Network 652 -2.7% 670 Market 26 -58.1% 62 International 127 +92.4% 66 Services & 46 91 +97.8% Holding(1) 1Q2005 1Q2006 (1) Including intercompany adjustments 17
Slide 19: Generation & Energy Management
Annexes Generation & Energy Management (€mn) 1Q2005(1) 1Q2006 % Revenues 3,597 4,360 21.2% EBITDA 911 920 1.0% EBIT 644 687 6.7% Capex 130 151 16.2% Net capital employed 12,669 12,354 -2.5% Headcount 9,000 9,697 7.7% (1) Net capital employed and headcount figures as of December 31, 2005 18
Slide 20: Infrastructure & Network
Annexes Infrastructure & Network (€mn) 1Q2005(1) 1Q2006 % Revenues 1,369 1,375 0.4% Power 1,241 1,261 1.6% Gas 128 114 -10.9% EBITDA 850 846 -0.5% Power 763 775 1.6% Gas 87 71 -18.4% EBIT 670 652 -2.7% Power 602 599 -0.5% Gas 68 53 -22.1% Capex 309 288 -6.8% Net capital employed 11,809 10,178 -13.8%
Slide 21: Market
Annexes Market (€mn) 1Q2005(1) 1Q2006 % Revenues 4,945 5,637 14.0% Power 4,300 4,888 13.7% Gas 645 749 16.1% EBITDA 81 51 -37.0% Power 18 10 -44.5% Gas 63 41 -34.9% EBIT 62 26 -58.1% Power 1 (11) Gas 61 37 -39.3% Capex 6 9 50.0% Net capital employed 1,000 409 -59.1% Headcount 5,994 5,866 -2.1% (1) N
Slide 22: International activities
Annexes International activities (€mn) 1Q2005(1) 1Q2006 % Revenues 362 607 67.7% EBITDA 106 176 66.0% EBIT 66 127 92.4% Capex 39 37 -5.1% Net capital employed 3,587 3,571 -0.4% Headcount 5,024 5,051 0.5% (1) Net capital employed and headcount figures as of December 31, 2005 21
Slide 23: Services & Holding
Annexes Services & Holding (€mn) 1Q2005 1Q2006 % Revenues 565 543 -3.9% Holding 270 307 13.7% Services and other 295 236 -20.0% (1) EBITDA 80 108 35.0% Holding 35 68 94.3% Services and other 45 40 -11.2% (1) EBIT 57 85 49.1% Holding 33 65 97.0% Services and other 24 20 -16.7% (1) Gross of intercompa
Slide 24: Services & Holding - Continued
Annexes Services & Holding - Continued (€mn) 1Q2005(1) 1Q2006 % (2) Capex 18 15 -16.7% (2) Net capital employed 629 841 33.7% Headcount 6,091 5,272 -13.4% Holding 569 603 6.0% (3) Services and other 5,422 4,669 -13.9% (1) Net capital employed and headcount figures as of December 31, 2005 (2) Service
Slide 25: Capex by business area (€mn)
Annexes Capex by business area (€mn) -2mn 502 500 -0.4% Gen. & 130 Energy 151 +16.2% Mgmt Infrastr. & 309 288 -6.8% Network Market 6 9 +50.0% International 39 37 -5.1% Services 18 15 -16.7% 1Q2005 1Q2006 24
Slide 26: Debt structure
Annexes Debt structure f Average debt maturity: 7 years and 11 months f Average cost of debt: 4.5% f (Fixed+hedged)/Total long-term debt: 89% f (Fixed+hedged)/Total net debt: 95% f Rating: − S&P’s = A+/A-1 negative; Moody’s = Aa3/P-1 stable (€mn) 31.12.2005 31.03.2006 % Long-term 10,904 10,870 -0.3%
Slide 27: Disclaimer
DISCLAIMER THESE SLIDES HAVE BEEN PREPARED BY THE COMPANY SOLELY FOR THE USE AT THE ANALYST CONFERENCE CALL ON ENEL’S 1Q06 CONSOLIDATED RESULTS. THE INFORMATION CONTAINED HEREIN HAS NOT BEEN INDEPENDENTLY VERIFIED. NONE OF THE COMPANY OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER IN NEGLIGE
Slide 28: Contact us
Contact us Investor Relations Team: Luca Torchia: +39 06 8305 3437 Massimiliano Bevignani: +39 8305 7023 Donatella Izzo: +39 06 83057449 Fausto Sblandi: +39 06 83052226 Federica Todaro: +39 06 8305 9502 investor.relations@enel.it Visit our website at: www.enel.it (Investor Relations) 27