Endesa S.a. · BME:ELE

Endesa — 9M 2016 Earnings Presentation

26 slides from Endesa's earnings presentation, Nov 8, 2016

1. Slide 1: Endesa 9M 2016 Results

   Endesa 9M 2016 Results 08/11/2016

2. Slide 2: Agenda

   1. Highlights and key financial figures 2. Endesa’s performance in 9M 2016 market context 3. Financial results 4. Final remarks 9M 2016 Results- Madrid, 8 November 2016 2

3. Slide 3: Agenda

   1. Highlights and key financial figures 2. Endesa’s performance in 9M 2016 market context 3. Financial results 4. Final remarks 9M 2016 Results- Madrid, 8 November 2016 3

4. Slide 4: 9M 2016 highlights

   EGPE fully consolidated since end-July 2016 Sound underlying(1) EBITDA evolution supported by successful energy management strategy and cost containment Strong Net Income figure (+22% like-for-like) Solid cash flow generation 9M 2016 Results- Madrid, 8 November 2016 (1) Net of 9M15 CO2 swap transact

5. Slide 5: Key financial figures

   Key financial figures €M 9M 2016 9M 2015 Change Like-for-like EBITDA 2,869 2,752 +4% +11%(1) Net attributable income 1,305 1,206 +8% +22%(2) Cash flow from operations 2,554 1,693 +51% 9M 2016 FY 2015 Change Net financial debt(3) 4,964 4,323 +15%  Like-for-like(1) EBITDA grew by 11% (1) Excluding +€

6. Slide 6: Agenda

   1. Highlights and key financial figures 2. Endesa’s performance in 9M 2016 market context 3. Financial results 4. Final remarks 9M 2016 Results- Madrid, 8 November 2016 6

7. Slide 7: Market context in 9M 2016

   Market context in 9M 2016 Demand Electricity wholesale prices Average pool prices Spain (€/MWh) Spain(1) Endesa distribution area(2) (Not adjusted) +0.7% +0.8% Industry +0.6% +0.1% Services +3.3% -32% -0.1% 50 Residential -2.1% 34 9M 2015 9M 2016 Adjusted for weather and working days Not adjusted 

8. Slide 8: Endesa's performance in 9M 2016 market context (I/II)

   Endesa’s performance in 9M 2016 market context (I/II) Energy management Output (GWh) Electricity sales(1) (GWh) 5.465 13.768 (-6%) 14.245 (+7%) (-32%) 9.449 (+1%) Unitary integrated 12.319 (-8%) margin(2): 10.171 50,406 506 (+3%) 76,004 (-10%) (n/a) €23.2/MWh (+1%) (+10% vs. 9M 2015) 34.281 26.206 (

9. Slide 9: Endesa's performance in 9M 2016 market context (II/II)

   Endesa’s performance in 9M 2016 market context (II/II) Regulatory update Latest regulatory developments  Social tariff:  Supreme Court rules against the current financing scheme in force since 2014  Legal proceedings still to be completed  Domestic coal:  €70 M of positive impact in 9M2016 from

10. Slide 10: Agenda

    1. Highlights and key financial figures 2. Endesa’s performance in 9M 2016 market context 3. Financial results 4. Final remarks 9M 2016 Results- Madrid, 8 November 2016 10

11. Slide 11: Financial results

    Financial results €M 9M 2016 9M 2015 Change Like-for-Like Revenues 14,107 15,412 -8% Gross Margin 4,338 4,210 3% (1) EBITDA 2,869 2,752 4% 11% EBIT 1,811 1,735 4% Net Financial Results (158) (142) 11% Share of profit from associates (35) 1 n/a Income tax (296) (379) -22% (2) Net attributable income

12. Slide 12: 9M 2016 EBITDA breakdown

    9M 2016 EBITDA breakdown 9M 2015 9M 2016 % €M Change (%) €M % 1,136 40% Generation & Supply(1) Generation & Supply(1) 41% 1,116 +2% Non-mainland Gx(2) 309 11% Non-mainland Gx(2) 11% 313 -1% 1,400 49% Distribution Distribution 48% 1,323 +6% 24 1% Renewables EBITDA 9M 2015 EBITDA 9M 2016 TOTAL 2,752 +

13. Slide 13: Regulated business

    Regulated business Gross margin evolution €M +1.3% (2) 2,320 2,350 Regulated renewables 33 28 -31 28 Non-mainland generation(1) 513 482 Distribution 1,807 1,840 9M 2015 Gross Dx Non-mainland Gx Regulated 9M 2016 Gross Margin renewables Margin  Stable gross margin (1) Non-mainland generation Gross M

14. Slide 14: Liberalized business

    Liberalized business (1) Gross margin evolution +5% 1,988 €M 55 8 Merchant renewables 1,890 145 8 177 Gas business Gas business 232 Sales (56,313 GWh) Sales (53,275 GWh) 6,175 7,188 1,803 1,658 13,833 11,084 36,305 35,003 9M 2015 Electricity Gas Business Merchant RW 9M 2016 Gross Gross Margin Busine

15. Slide 15: Liberalized business: 9M 2016 energy management

    Liberalized business 9M 2016 energy management Energy (TWh) Unitary values breakdown (€/MWh) Sales 62.1 63.7 Unitary revenue 64.2 59.4 Energy 15.6 23.2 purchases Unitary variable cost(1) 43.1 36.2 Mainland +10% 46.5 output 40.5 Unitary margin 21.1 23.2 9M 2015 9M 2016 9M 2015 9M 2016 €36/MWh (-16% v

16. Slide 16: Fixed costs evolution

    Fixed costs evolution +1% €M -3% 1,487 1,439 1,469 1,458 29 -30 Personnel -7% 669 690 689 718 costs +1% O&M costs 845 845 850 859 Capitalized costs -76 -76 -80 -80 9M 2015 9M 2015 9M 2016 9M 2016 Reported Adjusted Adjusted Reported  3% decrease in like-for-like fixed costs  New workforce restructu

17. Slide 17: From EBITDA to Net Income

    From EBITDA to Net Income €M -1,058 -158 -51 2,869 -296 1,811 1,602 1,305 EBITDA D&A EBIT Net Financial Associates and PBT Taxes Net attributable Results Others 11% Income 9M 2015 2,752 -1,017 1,735 -142 -5 1,588 -379 1,206 Change (%) +4% +4% +4% +11% +920% +1% -22% +8% 9M 2016 Results- Madrid, 8 No

18. Slide 18: Net financial debt analysis

    Net financial debt analysis Net financial debt evolution Net debt / 1.4x 1.6x(1) EBITDA ratio €M €214 M of cash 4,964(2) Regulatory working 4,323 equivalent as of 30th 169 capital(3) September Regulatory working 1.087 capital(3) 292 (4) 188 2.554 1.207 4,795 4,031 713 FY 2015 Cash flow Cape x+ Othe

19. Slide 19: Agenda

    1. Highlights and key financial figures 2. Endesa’s performance in 9M 2016 market context 3. Financial results 4. Final remarks 9M 2016 Results- Madrid, 8 November 2016 19

20. Slide 20: Final remarks

    Stable results in the regulated business Increasing results in the liberalized business supported by successful energy management strategy º 3% like-for-like fixed costs reduction Renewables business fully consolidated since end July 2016 As of 9M 16, Endesa is close to meet FY 2016 financial guidan

21. Slide 21: Appendix

    Appendix Endesa 9M 2016 Results 21

22. Slide 22: Installed capacity and output

    Installed capacity and output Mainland output(1) (GWh) Total output (GWh) GWh 9M2016 46,564 (and chg. vs. 9M 2015 Total Output (2) 2,778 40,451 Total 50,406 -10% Hydro 6,223 4% 11,508 2,445 -13% Nuclear 19,983 1% 8,790 Coal 13,502 -31% 6,510 3,010 Natural gas 5,086 -9% Oil-gas 5,106 3% Renewables 50

23. Slide 23: Endesa: financial debt maturity calendar

    Endesa: financial debt maturity calendar Gross balance of maturities outstanding at 30 September 2016: €5,639 M(1) Bonds Bank debt and others ECPs (2) 3,974 Endesa's liquidity 3,942 covers 20 months 1,334 of debt maturities 135 61 94 1,210 99 79 36 61 4Q 2016 134 2.017 2.018 2.019 15 32 RE ST O Octo

24. Slide 24: Gross financial debt structure

    Gross financial debt structure as of September 30th 2016 Structure of Endesa's gross debt €M 5,639 5,639 Floating 35% Euro 100% Fixed 65% By interest rate By currency  Average cost of debt 2.6% 9M 2016 Results- Madrid, 8 November 2016 24

25. Slide 25: 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

26. Slide 26: Endesa Corporate

    Endesa Corporate Get full information of the company on Endesa Corporate, the Endesa App for iPhone, iPad and Android devices. Download from App Download from Google Store Play 26

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