Endesa S.a. · BME:ELE
Endesa — Endesa Sa Madrid — H1 2023 Earnings Presentation
34 slides from Endesa's earnings presentation, Jul 26, 2023
Slide 1: First Half Consolidated results
First Half Consolidated results July 26th, 2023
Slide 2: 1H 2023 Consolidated results – José Bogas, CEO
1H 2023 Consolidated results José Bogas CEO
Slide 3: Key highlights of the period
Key highlights of the period Market Financial Cash context results generation Net Ordinary EBITDA lfl FFO improvement Income Market scenario and energy context gradual 2.5 €bn 0.9 €bn 1.6 €bn normalization +27% vs PY(1) +20% vs PY(1) +1.8 €bn vs PY Working capital normalization drives FFO improvemen
Slide 4: Solid evolution of main KPIs across all businesses
Solid evolution of main KPIs across all businesses 1H 2022 1H 2023 Renewable Capacity(1) 8.5 GW 9.3 GW +0.8 GW CO2 GHG free production on total(1) 78% 81% +3 p.p. Sales covered by GHG free sources(2) 75% 76% +1 p.p. Free power customers 6.6 mn 6.9 mn +0.3 mn Charging points(3) (k) 11.1 16.6 +5.5k TI
Slide 5: Capex increase versus last year
+12% Capex increase versus last year €mn Gross Capex by business Development gross Capex 11% Capex mostly 13% 36% devoted to 40% 1,043 energy 531 +12% vs. +22% vs. transition 1H 2022 64% 1H 2022 strategic 36% pillars 1H 2023 Results - Madrid, 26 July 2023 5
Slide 6: Market context
Market context Sustained downward trend on gas and power prices in a demand decline context Gas TTF spot prices (€/MWh) CO2 spot prices (€/t) Average Iberian power pool prices (€/MWh)(1) CO2 (€/t) -57% 95 85 +4% 206 75 88 2022 Average: 83.1 €/MWh 65 2023 Average: 86.7 €/MWh 1H 2022 1H 2023 55 PVB (€
Slide 7: Sound performance of Iberian free power margin gradually returning to normal levels
Sound performance of Iberian free power margin gradually returning to normal levels Output / Sales (TWh) Free power unitary margin (1) (€/MWh) Hedged output (2) CO2-free output / Fixed price sales 76% 42 +81% 4 1 58 100% 29 10 89% -2% 36 TWh (-1%) 5 Free sales 4 32 26 20 -1% Output Sales 1H 2022 1H
Slide 8: Gas margin impacted by market context
Gas margin impacted by market context Total volumes (1) (TWh) Gas unitary margin (2) (€/MWh) Volumes hedged (3) (%) -5% -11% 51 49 (4) 0.9 90% CCGT 15 0.8 13 65% Sales 36 35 1H 2022 1H 2023 1H 2022 1H 2023 2023 2024 Customers (mn) 1.8 1.8 -% Liberalized (mn) 1.5 1.4 -7% (1) Rounded figures. (2) Tota
Slide 9: 1H 2023 Financial results – Marco Palermo, CFO
1H 2023 Financial results Marco Palermo CFO
Slide 10: Key financial highlights
Key financial highlights €mn EBITDA lfl(1) Net Ordinary Income(1) FFO +27% +20% +1.8 €bn 2,476 879 1,615 1,950 734 -169 1H 2022 1H 2023 1H 2022 1H 2023 1H 2022 1H 2023 Reported Reported Net Adjusted EBITDA 2,188 2,476 +13% Income 916 879 -4% 564 1,427 +0.9 €bn FFO(2) 10 1H 2023 Results - Madrid, 26
Slide 11: EBITDA within a context normalization
+27% EBITDA within a context normalization €mn EBITDA by business (1) +526 €mn +27% 2,476 DYoY 473 +3% 2,188 1,950 180 Sound growth -369 (3) 902 28 214 874 based on our 874 +27% integrated Gx+Sx: +867 €mn (+95%) 1,002 business 788 788 440 +69% strategy 260 260 98 333 n.a. 168 168 -140(2) -201 n.a. 1
Slide 12: Generation&Supply: strong growth mainly driven by free power margin
Generation&Supply: strong growth mainly driven by free power margin Generation & Supply EBITDA lfl +867 €mn ~2x -7 -6 -57 Free power margin +937 €mn: • Higher thermal margins • Supply normalization 937 • Positive short position management 1,775 Fixed costs&others: -57 €mn, mainly Gross margin +924 €
Slide 13: Stable Networks EBITDA
Stable Networks EBITDA Networks EBITDA evolution +28 €mn +3% 874 37 902 -9 Absence of previous year’s negative resettlements EBITDA 1H 2022 Gross margin Fixed costs & others EBITDA 1H 2023 1H 2023 Results - Madrid, 26 July 2023 13
Slide 14: Net Ordinary Income up by 20% driven by strong EBITDA
Net Ordinary Income up by 20% driven by a strong EBITDA performance Profit & loss (€mn) +145 €mn +20% Amortization increase due to higher investment effort -83 288 -217 182 -51 26 Financial results impacted by cost of debt increase, higher average gross debt and provisions update 916 879 734 Tax rat
Slide 15: Sound recovery in FFO thanks to working capital management
Sound recovery in FFO thanks to working capital successful management €mn Working capital & others –0.2 €bn(1) 188 -178 -433 -244 -194 2,476 1,615 Reported Provisions paid Regulatory Rest working Income Taxes Net Financial FFO EBITDA working capital capital & others (2) Expenses (3) 1H 2022 1,950 -2
Slide 16: Credit metrics improvement
Credit metrics improvement €bn (1) (2) Net debt evolution Gross debt -3% -22% 10.9 10.6 18.5 (2) Cash collateral Regulatory 2.3 1.6 1.3 reduction working capital 2.1 6.7 14.5 FFO-Capex +0.3 €bn 3.1 -53% 0.9 0.7 8.5 8.5 10.9 10.6 2022 FFO Cash Capex (3) 1H 2023 2022 1H 2023 Net debt Cash&Others Cash
Slide 17: 1H 2023 Closing remarks – José Bogas, CEO
1H 2023 Closing remarks José Bogas CEO
Slide 18: Closing Remarks
Closing Remarks Delivering solid results based on our integrated business model…. A successful business model …translating into a sound improvement in FFO fostering leadership in energy transition Confidence to achieve 2023 guidance 1H 2023 Results - Madrid, 26 July 2023 1818
Slide 19: 1H 2023 Annexes
1H 2023 Annexes encesa
Slide 20: P&L 1H 2023 vs. 1H 2022
P&L 1H 2023 vs. 1H 2022 €mn 1H 2023 1H 2022 % Var. Income 13,121 14,851 -12% Procurements and services -8,057 -10,956 -26% Income and expenses from energy derivatives -1,506 -923 +63% Gross margin 3,558 2,972 +20% Fixed operating costs and other results -1,082 -784 +38% EBITDA 2,476 2,188 +13% D&A -
Slide 21: Endesa: 1H 2023 P&L
Endesa: 1H 2023 P&L €mn Gx+Sx Conventional Gx Renewables Retail Endesa X Dx Structure Adjustments TOTAL adjustments (1) Income 5,627 629 10,470 190 -4,964 1,261 233 -325 13,121 Procurements and services -3,039 -63 -9,584 -110 4,948 -77 -209 77 -8,057 Income and expenses from energy derivatives -1,18
Slide 22: Endesa: 1H 2022 P&L
Endesa: 1H 2022 P&L €mn Gx+Sx Conventional Gx Renewables Retail Endesa X (1) Dx Structure Adjustments TOTAL adjustments Income 6,250 501 12,861 158 -6,051 1,222 217 -307 14,851 Procurements and services -4,098 -92 -12,867 -77 6,013 -75 170 70 -10,956 Income and expenses from energy derivatives -983
Slide 23: Installed capacity and output
Installed capacity and output Total net installed capacity (MW) Total gross output(1) (GWh) 1H 2023 2022 Var. (%) 1H 2023 1H 2022 Var. (%) Mainland 17,781 17,781 +0% 24,211 25,251 -4% Renewables (2) 9,293 9,293 +0% 7,291 6,215 17% Hydro 4,746 4,746 +0% 2,627 2,480 6% Wind 2,882 2,882 +0% 3,307 2,831
Slide 24: Fixed costs evolution
Fixed costs evolution €mn +6% 1,084 1,025 520 +4% 499 660 711 +8% -134 -147 1H 2022 1H 2023 Personnel Costs O&M Costs Capitalized costs 1H 2023 Results - Madrid, 26 July 2023 24
Slide 25: Debt maturity
Debt maturity Debt maturity by year(1) (€bn) 8.6 4.6 0.7 0.7 2023 2024 2025 2026+ Debt average life (years) 3.8 Liquidity position (€bn) 8.5 Sustainable Gross Debt 64% 1H 2023 Results - Madrid, 26 July 2023 (1) Rounded figures. ECP maturities are shown in 2025/26 as corresponding back up credit line
Slide 26: Mainland installed capacity and production
Mainland installed capacity and production Installed capacity(1) (GW) Production(2) (TWh) +5% -20% 17.0 17.8 18% 0.9 0.0 -7% 8.5 9.3 +9% 24 51% -4% vs. 1H 2022 3.3 3.3 FLAT 30% 5.2 5.2 +17% 1H 2022 1H 2023 CO2 free CO2 emissions free capacity 70% 71% 81% output Renewable Nuclear Thermal Gx Variation
Slide 27: 70 GW pipeline supporting further renewable acceleration
70 GW pipeline supporting further renewable acceleration Renewables pipeline(1) (GW) Mature & In execution pipeline by COD(3) (GW) ~18% 6 ~2.5x 2023-25 ~61% 16 GW targets 50 11 70 ~19% ~3% 2023-25 >2025 18 2.1 ~50% of 2023-25 target additions already in (2) Gross Pipeline Early stage Mature In execu
Slide 28: Liberalized power sales and customers
Liberalized power sales and customers Liberalized power customers(1) Liberalized power sales(2) (TWh) (mn) +5% -% 6.6 6.9 37.7 37.8 10.3 10.7 6.2 6.5 27.4 27.1 0.4 0.3 1H 2022 1H 2023 1H 2022 1H 2023 Regulated (mn) 3.9 3.7 -5% Regulated (TWh) 5.2 4.3 -17% TOTAL (mn) 10.5 10.5 -% TOTAL (TWh) 42.9 42.
Slide 29: Networks: operational parameters
Networks: operational parameters Distributed energy (TWh) TIEPI (1) (min.) Losses (%) FLAT -14% -0.4 pp 66 67 28.8 24.9 7.3 6.9 1H 2022 1H 2023 1H 2022 1H 2023 1H 2022 1H 2023 Energy to own customers(2) (TWh) 54 52 -4% RAB (€bn) 11.4 11.4 -% (1) Tiempo de Interrupción Equivalente a la Potencia Insta
Slide 30: Spanish power market
Spanish power market 1H 2023 Customers (mn) Energy sold (TWh) Endesa Endesa market share(1) market share(2) 20.5 29.9 106.7 116.7 Residential 31.4 Business 30% 40.9 19.6 29% 29.0 75.3 9.4 30% 75.8 0.9 9.4 23% 10.1 0.9 9.5 0.0 0.6 Regulated 43% Free 28% Total Regulated 43% Free 30% Total 30 (1) Custo
Slide 31: Glossary of terms (I/II)
Glossary of terms (I/II) Reference note of Consolidated Item Calculation Management Report Cost of gross financial debt / gross average financial debt: (239 €mn x (12 months / 6 months)) / 16,128 Average cost of debt (%) 9 €mn = 3.0% (Principal x number of days of term) / (Principal in force at the
Slide 32: Glossary of terms (II/II)
Glossary of terms (II/II) Reference note of Consolidated Item Calculation Management Report Gross tangible (909 €mn) and intangible (195 €mn) Capex - rights of use (59 €mn) + Others (-2 €mn) = Gross Capex (€mn) n/a 1,043 €mn Long and short term financial debt (13,151 €mn + 1,314 €mn) - Cash and cash
Slide 33: 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 34: 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 34