Enel SpA · MIL:ENEL
Enel SpA — 9M 2013 Earnings Presentation
49 slides from Enel SpA's earnings presentation, Nov 7, 2013
Slide 1: 9M 2013 Results
9M 2013 Results November 7, 2013
Slide 2: Opening remarks: 9M2013 highlights
9M 2013 Results Opening remarks 9M2013 highlights Disposal plan and hybrid financing well on track Opex down by 3%, -5% in mature markets: full year 2013 savings target upgraded Enel SpA – Investor Relations Capex down by 15%, -28% in mature markets: ongoing capex optimization FY 2013 overall financ
Slide 3: Major achievements: focus on balance sheet
9M 2013 Results Major achievements Focus on balance sheet (€bn) Disposals ~6 Impact on Net Debt Type of asset o Artic Russia (SeverEnergia)1 ~1.3 €bn Gas upstream in Russia ~ 1.4 o Medgaz ~0.1 €bn Gas pipeline in Spain 2013-2014 Already cumulative completed target Enel SpA – Investor Relations Hybri
Slide 4: Major achievements: focus on cost savings programme
9M 2013 Results Major achievements Focus on cost savings programme1 (€mn) ~4,060 33% Growth markets Mature markets ~1,320 30% personnel costs 70% external costs 36% ~850 67% 35% Enel SpA – Investor Relations ~240 ~210 64% 5% 10% 65% 95% 90% 9M 2013 2013 target 2015 2017 2013-2017 actual (Plan 2013-2
Slide 5: Gross capex
9M 2013 Results Gross capex1 (€mn) -15.4% 4,377 101 3,701 714 41 -59.4% 831 +16.4% Other2 1,472 o Mature markets: Iberia: Enel Green Power -28.6% o Italy3: -28% 1,305 Iberia & Latam Latam: o Spain4: -29% Enel SpA – Investor Relations International +5.7% 794 Infrastructure & Networks 593 -25.3% o Org
Slide 6: Country electricity demand vs. plan assumptions
9M 2013 Results Country electricity demand1 vs. plan assumptions Electricity demand 9M2013 Focus on Latam 9M13 actual -3.7% Argentina +2.0% Italy FY13 budget -0.1% Spain2 9M13 actual -3.1% Brazil5 +3.1% FY13 budget -2.0% 9M13 actual +0.1% Chile6 Russia +4.3% FY13 budget +1.6% Enel SpA – Investor Rel
Slide 7: Financial highlights
9M 2013 Results Financial highlights Consolidated results 9M12 €mn 9M12 restated 1 9M13 % Revenues 61,899 61,899 59,149 -4.4 EBITDA 12,761 12,736 12,187 -4.3 EBIT 8,200 8,186 7,478 -8.6 Group net income 2,808 2,784 2,335 -16.1 Enel SpA – Investor Relations Group net ordinary income2 2,627 2,603 2,30
Slide 8: From EBIT to Net Income
9M 2013 Results From EBIT to Net Income 9M12 €mn 9M12 restated 1 9M13 % EBIT 8,200 8,186 7,478 -8.6 Net financial charges (2,326) (2,326) (2,016) -13.3 Interest charges (2,148) (2,148) (2,086) -2.9 Other (178) (178) 70 n.m. Net income from equity investments using equity method 65 65 69 +6.2 EBT 5,9
Slide 9: Focus on forward electricity sales
9M 2013 Results Focus on forward electricity sales Level of total production hedged (%) Italy Spain2 100 100 100 100 ~5 ~ 25 ~ 45 ~ 95(1) ~ 75(1) ~ 55 2013 2014 2013 2014 Latam Slovakia Enel SpA – Investor Relations 100 100 100 100 ~ 20 ~ 25 - 30 ~ 20 Unhedged ~ 80 ~ 70 - 75 ~ 80 Hedged 2013 2014 20
Slide 10: Group EBITDA evolution
9M 2013 Results Group EBITDA evolution (€mn) -4.3% 12,736 -64 +184 -367 -202 -309 +187 +22 12,187 87 1,124 109 1,311 Latam operations: 2,390 €mn Latam operations: 2,588 €mn 5,634 5,325 Iberian operations: S&H1 3,244 €mn EGP Iberian operations: 2,737 €mn Enel SpA – Investor Relations Iberia & Latam 1
Slide 11: EBITDA evolution: G&EM Italy
9M 2013 Results EBITDA evolution: G&EM Italy (€mn) -6.2% 1,028 -39 -108 +83 964 Enel SpA – Investor Relations 9M12 Generation Gas Other 9M13 margin margin 10
Slide 12: EBITDA evolution: Market Italy
9M 2013 Results EBITDA evolution: Market Italy (€mn) +37.2% +84 678 +100 494 Enel SpA – Investor Relations 9M12 Free Regulated 9M13 market market 11
Slide 13: EBITDA evolution: Infrastructure & Networks Italy
9M 2013 Results EBITDA evolution: Infrastructure & Networks Italy (€mn) -11.2% +191 -174 3,264 -384 2,897 Enel SpA – Investor Relations 9M12 Energy Connection Other 9M13 margin fees 12
Slide 14: EBITDA evolution: International
9M 2013 Results EBITDA evolution: International (€mn) -18.3% -7.0% 1,105 -113 +83 -25 -22 1,028 -125 OGK5: 296€mn OGK5: RES1: 396 294€mn 903 100€mn 374 RES1: 12 80€mn 169 Russia Enel SpA – Investor Relations 252 France, Belgium, EIH4 SEE3 528 Centrel2 415 -13 9M12 Centrel2 SEE3 France, Russia 9M13 O
Slide 15: EBITDA evolution: Endesa - Iberia
9M 2013 Results EBITDA evolution1: Endesa - Iberia2 (€mn) -15.6% 3,244 -236 -333 +62 2,737 Enel SpA – Investor Relations 9M12 Liberalized Regulated Other 9M13 business business 1. Enel’s GAAP figures 2. Including Ireland (out of perimeter since October 2012) and Morocco 14
Slide 16: EBITDA evolution: Endesa - Latam
9M 2013 Results EBITDA evolution1: Endesa - Latam (€mn) +8.3% +359 -145 -220 +204 2,588 2,390 Enel SpA – Investor Relations 9M12 Generation Distribution Other Forex 9M13 effect 1. Enel’s GAAP figures 15
Slide 17: EBITDA evolution: Enel Green Power
9M 2013 Results EBITDA evolution: Enel Green Power (€mn) +16.6% +94 1,311 +88 +5 1,124 184 90 361 356 Enel SpA – Investor Relations North America 766 Iberia and Latin America 678 Italy and Europe 9M12 Italy and Iberia and North 9M13 Europe Latin America America 16
Slide 18: Net debt evolution
9M 2013 Results Net debt evolution (€mn) (1) -1,042 December 31, Cash flow Capex Net Taxes Dividends2 Extra- September 30, 2012 from financial ordinary 2013 operations charges activities +10(3) -13 (3) -42,948 -43,990 Enel SpA – Investor Relations +6,581 -3,701 -2,014 -1,405 -1,866 +1,363 1. Net deb
Slide 19: Closing remarks
9M 2013 Results Closing remarks Focused on strengthening the balance sheet and achieving cost savings Resilient business in mature markets, despite on-going challenges Enel SpA – Investor Relations Continued strong performance in growth markets Strong progress towards 2013-2017 Strategic Plan execut
Slide 20: Annexes
wy Ae Enel ENERGY IN TUNE WITH YOU.
Slide 21: Production mix
Enel SpA 9M 2013 Results - Operational Annexes Investor Relations Production mix (TWh) -3.7% 57.4 55.3 2.1% 0.8% 16.1% 9.7% Group production mix 44.9% Italy -4.7% 48.7% 9.1% 8.2% 224.4 213.9 35.5% 24.9% 12.0% 10.1% 9M12 9M13 14.0% 14.5% 28.6% -5.0% Enel SpA – Investor Relations 31.3% 14.4% 14.2% 167
Slide 22: Group total net installed capacity by source and location
Enel SpA 9M 2013 Results - Operational Annexes Investor Relations 9M2013 Group total net installed capacity1: breakdown by source and location MW Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 13,687 1,605 - 6,680 5,925 12,024 39,921 Iberia 4,722 1,865 3,556 5,533 5,573(2) 2,930 24
Slide 23: Group total net production by source and location
Enel SpA 9M 2013 Results - Operational Annexes Investor Relations 9M2013 Group total net production1: breakdown by source and location GWh Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 19,598 5,055 - 24,838 5,346 434 55,271 Iberia 8,087 3,373 19,959 16,657 4,070(2) 4,841 56,987 Ce
Slide 24: Enel Green Power net installed capacity
Enel SpA 9M 2013 Results - Operational Annexes Investor Relations 9M2013 Enel Green Power net installed capacity: breakdown by source and location MW Hydro Geothermal Wind Other TOTAL Italy & Europe 1,531 723 1,646 211 4,111 Iberia & Latam 775 - 2,036 87 2,898 Enel SpA – Investor Relations North Ame
Slide 25: Enel Green Power net production
Enel SpA 9M 2013 Results - Operational Annexes Investor Relations 9M2013 Enel Green Power net production: breakdown by source and location GWh Hydro Geothermal Wind Other TOTAL Italy & 5,150 3,960 2,334 177 11,621 Europe Iberia & 2,464 - 3,573 288 6,325 Latam Enel SpA – Investor Relations North 852
Slide 26: Group EBITDA: regulated/unregulated activities
Enel SpA 9M 2013 Results - Financial Annexes Investor Relations Group EBITDA: regulated/unregulated activities 9M 2013 EBITDA Stability and high 12,187 €mn visibility 11% 51% 38% Enel SpA – Investor Relations Forward sales and hedging procurement Unregulated contracts to protect Regulated margin Ene
Slide 27: Enel's debt maturity profile
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Enel’s debt maturity profile (€bn) Total liquidity available Debt maturity profile ~33.5 ~23.1 Short term Long term Long term committed ~14.9 credit lines1 ~8.9 ~9.3 Enel SpA – Investor Relations ~6.3 Cash and ~5.2 cash ~8.2 ~5.1 ~1.3 e
Slide 28: Enel's long-term debt maturity profile
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Enel’s long-term debt maturity profile (€mn) Endesa Enel Group (excluding Endesa) 33,547 3,047 Bonds 1,839 Bank loans and others 2,095 30,500 8,937 6,256 Enel SpA – Investor Relations 1,223 5,230 1,088 3,934 695 1,255 1,266 7,714 4,535
Slide 29: Enel Group liquidity analysis
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Enel Group liquidity analysis (€mn) Amount Outstanding Available Committed credit lines 20,476 5,152 15,324 (1) Cash and cash equivalents - (8,152) 8,152 Total 20,476 (3,000) 23,476 Uncommitted lines 854 68 786 Commercial paper 9,296 5,
Slide 30: Debt structure
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Debt structure1 • Average debt maturity: 6 years and 8 months • Average cost of gross debt2: 4.8% • (Fixed+hedged)/Total gross long-term debt: 76% • (Fixed+hedged)/Total net debt: 96% • Rating: Standard&Poor’s = BBB/A-2 Stable Outlook M
Slide 31: Enel's group financial debt evolution
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Enel’s group financial debt evolution1 Enel Group (excluding Endesa) Endesa Group - Total €mn 12.31.2012 09.30.2013 12.31.2012 09.30.2013 09.30.2013 Bank loans – maturities > 12m 10,864 9,454 2,418 1,911 11,365 Bonds – maturities > 12m
Slide 32: Enel's group financial debt by subsidiary
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Enel’s group financial debt by subsidiary1 €mn Enel SpA Endesa EFI2 EIH2 Slovenské EP2 ED2 Other Total Bonds 18,869 4,170 20,900 298 - - - 94 44,331 Bank loans - 2,324 3,520 - 1,189 510 3,088 2,563 13,194 Preference shares - - - - - - -
Slide 33: Enel's group financial debt
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Enel’s group financial debt Average cost of net debt Average cost of gross debt Average residual maturity (years:months) 6.1% 6.2% 6:11 5.9% 6:8 4.9% 4.8% 4.8% 6:7 2011 2012 9M2013 2011 2012 9M2013 2011 2012 9M2013 Net financial debt (€
Slide 34: Enel's long-term debt maturity profile
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Enel’s long-term debt maturity profile (€mn) Enel Group (excluding Endesa) €mn <12m 4Q14 2015 2016 2017 After 2017 Bank loans 1,416 212 738 569 3,984 3,951 Bonds 1,169 956 3,726 4,529 3,646 26,135 Other 94 21 71 70 84 414 Total 2,679 1,
Slide 35: Enel Group liquidity analysis excluding Endesa
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Enel Group liquidity analysis excluding Endesa (€mn)1 Amount Outstanding Available Term loan (2017) 3,200 3,200 - Revolving Credit Facility (2015)2 10,000 - 10,000 Other committed credit lines 3,461(3) 1,794 1,667 Total committed credit
Slide 36: Endesa liquidity analysis
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Endesa liquidity analysis (€mn)1 Amount Outstanding Available Total committed credit lines 3,815 158 3,657 Other short-term bank debt – uncommitted lines 622 - 622 Total credit lines 4,437 158 4,279 Commercial paper issued by the Endesa
Slide 37: EBITDA evolution - Other
Enel SpA 9M 2013 Results - Financial annexes Investor Relations EBITDA evolution - Other1 (€mn) +25.3% +39 109 87 -17 Enel SpA – Investor Relations 9M12 Services Other 9M13 1. Including Services & Holding, Engineering & Innovation, upstream gas and nuclear activities 36
Slide 38: Balance sheet
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Balance sheet €mn FY12 9M13 % Net financial debt 42,948 43,990 +2.4 Shareholders’ equity 52,087 53,017 +1.8 Net capital employed 95,035 97,007 +2.1 Enel SpA – Investor Relations 37
Slide 39: Generation & Energy Management - Italy
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Generation & Energy Management - Italy €mn 9M12 9M13 % Revenues 17,222 17,605 +2.2 EBITDA 1,028 964 -6.2 EBIT 561 579 +3.2 Capex 232 158 -31.9 Enel SpA – Investor Relations Headcount 6,043 (1) 5,753 -4.8 1. As of December 31st, 2012 38
Slide 40: Market - Italy
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Market - Italy €mn 9M12 9M13 % Revenues 13,860 12,687 -8.5 EBITDA 494 678 +37.2 EBIT 161 272 +68.9 Capex 53 50 -5.7 Enel SpA – Investor Relations Headcount 3,674 (1) 3,722 +1.3 1. As of December 31st, 2012 39
Slide 41: Infrastructure & Network - Italy
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Infrastructure & Network - Italy €mn 9M12 9M13 % Revenues 6,082 5,597 -8.0 EBITDA 3,264 2,897 -11.2 EBIT 2,496 2,173 -12.9 Capex 1,011 723 -28.5 Enel SpA – Investor Relations Headcount 18,632 (1) 18,413 -1.2 1. As of December 31st, 2012
Slide 42: International
Enel SpA 9M 2013 Results - Financial annexes Investor Relations International €mn 9M12 9M13 % Revenues 6,324 5,682 -10.2 EBITDA 1,105 903 -18.3 EBIT 826 471 -43.0 Capex 794 593 -25.3 Enel SpA – Investor Relations Headcount 12,652 (1) 12,300 -2.8 1. As of December 31st, 2012 41
Slide 43: Iberia & Latam
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Iberia & Latam €mn 9M12 9M13 % Revenues 25,140 23,280 -7.4 EBITDA 5,634 5,325 -5.5 EBIT 3,379 3,105 -8.1 Capex 1,472 1,305 -11.3 Enel SpA – Investor Relations Headcount 22,807 (1) 22,977 +0.7 1. As of December 31st, 2012 42
Slide 44: Enel Green Power
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Enel Green Power €mn 9M12 9M13 % Revenues 1,924 2,093 +8.8 EBITDA 1,124 1,311 +16.6 EBIT 764 848 +11.0 Capex 714 831 +16.4 Enel SpA – Investor Relations Headcount 3,512 (1) 3,557 +1.3 1. As of December 31st, 2012 43
Slide 45: Other
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Other1 €mn 9M12 9M13 % Revenues2 1,380 1,371 -0.7 Holding 232 215 -7.3 Services 1,013 1,027 +1.4 Engineering & Innovation 239 218 -8.8 Upstream 1 1 - Enel SpA – Investor Relations EBITDA3 87 109 +25.3 Holding (40) (12) +70.0 Services 14
Slide 46: Other - Continued
Enel SpA 9M 2013 Results - Financial annexes Investor Relations Other1 - Continued €mn 9M12 9M13 % EBIT2 (1) 30 n.m. Holding (47) (19) +59.6 Services & other 64 56 -12.5 Engineering & Innovation (1) 6 n.m. Upstream (17) (13) +23.5 Capex 101 41 -59.4 Holding 2 1 -50.0 Enel SpA – Investor Relations Se
Slide 47: EBIT by business area
Enel SpA 9M 2013 Results - Financial annexes Investor Relations EBIT by business area (€mn) -8.6% 8,186 7,478 764 n.m. 30 848 +11.0% Other1 3,379 EGP 3,105 -8.1% Iberia & Latam Enel SpA – Investor Relations International 826 I&N 471 -43.0% Market G&EM 2,496 2,173 -12.9% 161 272 +68.9% 561 579 +3.2%
Slide 48: Disclaimer
Enel SpA Investor Relations Disclaimer This presentation contains certain forward-looking statements that reflect the Company’s management’s current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are
Slide 49: Contact us
Enel SpA Investor Relations Contact us Investor Relations Team (investor.relations@enel.com) • Luca Torchia +39 06 8305 3437 (Head of IR) • Elisabetta Ghezzi +39 06 8305 2708 (IR Coordination and Outbound communication) • Marco Donati +39 06 8305 9252 (Inbound communication) • Matteo Cavadini +39 06