Gas Natural SDG SA
Gas Natural SDG SA — Endesa — Merger or Acquisition (September 2005)
37 slides from Gas Natural SDG SA's merger presentation, Sep 6, 2005
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.: 333-07654 This communication is not an offering document and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitati
Slide 2: Creating a leading, fully integrated global energy company
Creating a leading, September gasNatural 2005 fully integrated global energy company
Slide 3: Disclaimer
Disclaimer will Gas information (once it Investors at strategies; levels These including, approvals Forward-looking statements looking This 2 becomes www.sec.gov. Natural be communication itand materials forward-looking made is statements in and and approved EBITDA but synergies reflect available, a
Slide 4: Agenda
Agenda overview Transaction Combined Financial 3 Conclusions company overviewposition benefits
Slide 5: Transaction overview
Creating aoverview Transaction Combined Financial Conclusionsleading, company overview benefits fully position integrated global energy company
Slide 6: A transforming transaction
A transforming Global Complementary, Client-focused 5 leading multinational integrated transaction high-quality gas toleader and accelerate assetpower positions with profitable company overin30fast million with growth growing strong customer markets energy accounts management capabilities
Slide 7: Transaction offer
Transaction Offer €7.34 Tender 14.8% 19.4% The Endesa’s 1 Note: 6 Based tender offer consideration: into offer on cash shareholders Endesa’s isoffer Gas conditioned details for implies andNatural’s 100% envisages 0.569 closing average 65.5% a value will ofGas on the share price two benefit price rea
Slide 8: Expected transaction timetable
Expected 2005 Sep Regulatory CNE, Spanish CNMV Gas US Announcement 7 registration shareholders Oct Natural 2006 Antitrust approval Tender Nov transaction review EGM Dec and /and Offer receive Tender Tender Jan approves Government filing timetable Feb Offer offer Offer with Mar capital document perio
Slide 9: Complementary Gas Natural and Endesa strengths
Complementary Gas Flexible Access Successful Unique Long-standing Endesa Early Proactive Strong A 8 leading Natural mover LNG electricity to track and expansion equity global CCGT into competitive management record track core gas, integrated high distribution build-up in record into skills with grow
Slide 10: Transaction leads to clear strategic priorities
Transaction LEADING CLEAR Gas Impact Joint Additional opportunities Expected Note: 9 Natural’s supply leading Data ofSTRATEGIC solid transaction growth presented INTERNATIONAL with fully position in objectives and liberalised equity inopportunities profitable line post inPRIORITIES gas with key prop
Slide 11: Combined company overview
Creating aoverview Transaction Combined Financial 10 Conclusionsleading, company overview benefits fully position integrated global energy company
Slide 12: Key transaction benefits
Key transaction Creates Strong Addresses Significant 11 and a leading regulatory balanced synergy benefits world potential positions concerns, class integrated inmaking high growth the gasSpanish and markets power energy company, sector with morea competitive customer-oriented business model
Slide 13: A global leader in customer connections
APost Combined Electricity No.1 No.3 Global 40 (m) New 31.2 E.ON 32.9 Enel 33.5 Tokyo 27.7 RWE 31.0 1 Note: GDF 15.2 2 12By global 30Group customers, 20 proposed Electric LNG customer utilities leader 10and market 0supply gas –indisposals; post connections2 ranking the positions in proposed Spain1 L
Slide 14: An integrated, customer-oriented business model
An Integration Upstream Pipelines Midstream /Power Wholesale Distribution Trading Complementarity Management GLOBAL Retail 13 Energy integrated, generation and Fleet CUSTOMER ofrisk positions customer-oriented management and gas inBASE supply upstream/midstream skills business Physical model backing
Slide 15: Strong positions in key markets
Strong Expected JV LNG Italy LatAm No. Iberia 1 Notes: 2 3 14Data Excluding with 14 flows Power presented and 3Repsol LNG balanced municipal state-owned generation supplier flows YPF postpositions gives Pipeline No. proposed utilities No. companies 1access Power 5 Power 1 Gas Project indisposals hig
Slide 16: A European energy leader in growth markets
AEquivalent 100 European 400 (TWh) CAGR: EU15 2005 Italy Spain Global 800 (bcm) 1985 North Asia Europe Source: LatAm 120 (US$bn) Natural Electricity 1 Notes: 2 15On leader 80 350 700 100 cumulative 2006 1990 America CAGR LNG 60 energy gas European Company 2.2% 6.2% 3.0% 3.1% 300 600 80 inelectricity
Slide 17: Restructuring Spanish power and gas markets
Restructuring Gas Fuel/Gas Spanish CHP/ Nuclear CCGT Fuel Coal Hydro Proposed New Combined 1 Notes: 2 16Pro-forma Includes Natural/Endesa /Gas Group’s 18% 20% Renewables 30% 31% 15% 13% 20% 14% market 9% asset 12% Endesa, company data generation ofsales generation the presented 8% 10% Gas generation
Slide 18: Planned asset disposals
Planned Generation Gas = Electricity Certain Endesa’s Divestitures International Agreement Source: 171.25 distribution million generation distribution Company asset interest distribution inin with divestitures disposals Spain customer Spain Iberdrola inestimates assets SNET assets to and comply acco
Slide 19: Significant synergy potential
Significant €85m Corporate Economies €175m Commercial Information Optimisation €90m Third-party Purchasing Distribution Current Estimated Additional 18 estimate services potential savings synergy of services technology of scale operations ofAdministrative of potential annual in €30m customer savings
Slide 20: Combined company positions
Creating aoverview Transaction Combined Financial 19 Conclusionsleading, company overview benefits fully position integrated global energy company
Slide 21: A global gas and power leader
A 20,100MW Italy: Poland: 330 Turkey: 40 0.3 0.2 Portugal Puerto 271MW 4.6 10.9 LatAm: 2,000MW 14,353MW Spain: = 1,914MW 25.0Bcm Contracted Existing Morocco: Basic 128MW Maghreb Gas Algeria Note: 20 estimates 3,800MW 3.7 0.4 10.8 global MW million MW Natural contracts/LNG exploration million million
Slide 22: Gas: integrated position and partnership
Gas: Partnership Integrated Exploration Optimisation Stronger Additional Gas Enhanced Better Greater 1 Note: 21Endesa Natural benefits positioned trading/arbitrage diversification market presentation LNG project 3-5 with block supply of from bcm/yr position procurement position Repsol to in (Gassi i
Slide 23: Gas procurement and diversification
(bcm 20 3—5 (3.0) 6.5 > Endesa Total Estimated Norway Libya Trinidad Nigeria Algeria Qatar Note: Expected Gas New 226.5 1315Natural procurement Group pa) As 18% In 10 3% 2005 incremental 20% 37% 8% addition & 5of Endesa incremental supply 0Tobago 2008; expected incremental supply to European positio
Slide 24: Power: optimisation and CCGT position
Power Optimisation Commodity (coal Twin Balance Endesa Gas + Spanish A In Note: 23Cartagena leader line Natural /800 Data gas in with ismarket between in Spain: MW short /presented CCGT regulatory CO2 mix contributes (1,200 ofCCGT in leader generation benefits /production generation with hydro) MW)
Slide 25: Evolution of combined CCGT capacity
Evolution Combined (MW 9,000 2004 5,200 3,200 2,000 3,600 1,600 800 1,200 Gas Endesa Note: 24 Natural 2005E installed) Data 8,000 sites of entity presented 7,000 sites 2009E CCGT will 6,000 portfolio post become 5,000 proposed a4,000 market disposals 3,000 leader 2,000 Source: in gas-fired 1,000Comp
Slide 26: Evolution of renewables capacity
Evolution Strong (MW 4,500 = 1,753 46 23 992 134 1,288 643 67 164 1,694 874 96 4,106 2,013 228 2005E 194 2,423 932 Gas Endesa Note: 252233 195 197 207 230 .3x Natural installed) Data 4,000 2006E renewables 218 221 228 Wind Cogen ofpresented 279 3,500 Wind renewables Gas 2007E Endesa Natural Endesa 3
Slide 27: Regulated electricity and gas distribution
Regulated Electricity Viesgo Iberdrola Source: Gas Endesa Edp Significant Strong Proposed 1 Note: 26Before distribution Natural / HC focus Union Unesa, proposed transfer /businesses: distribution NaturCorp capex onFenosa Company efficiency needs todisposals final strong incustomers estimates regulat
Slide 28: Italy: favourably positioned
Italy: Favourably 1,760 Tavazzano 976 1,460 Ostiglia Monfalcone 530 Terni 20 Florinas Livorno 369 Cotronei Fiume 960 115 Catanzaro Taranto 170 Trapani Brancato, 0.3m Fossil-fuel Planned Note: Endesa established New 27 MW MWGroup gas well Installed MW Santo proactive LNG customers Nettis, placed plan
Slide 29: LatAm: enhanced leading positions
LatAm: 1.1m Mexico Puerto 271MW Dominican 1.5m Colombia 29MW 0.9m Peru 1.4m Chile Gas 0.7m Brazil 2,000MW 1.3m Argentina Combined Janeiro, Well Enhanced Note: 28 Natural placed electricity gas Customers Rico leading São regasification customers opportunities interconnection LatAm Republic to Endesa
Slide 30: Financial position
Creating aoverview Transaction Combined Financial 29 Conclusionsleading, company overview benefits fully position integrated global energy company
Slide 31: Capital expenditure plan
Capital Plan Gas Other Pro Up LatAm Endesa Europe Distribution Generation Company Source: Heavy Exploiting Continue Leverage Build 30 +forma Natural to Midstream an 1%emphasis invest 14% 18% 11% 12% expenditure integrated gas on estimates energy 27% 34% 41% 28% 29% access power = €17bn on 18% 8%need
Slide 32: Diversification of EBITDA
Diversification Endesa—€4.9bn Other New Up Gas Elec. Generation Europe LatAm 1 Notes: Spanish 2 3 31EBITDA Gas Pro-forma +distribution Natural—€1.4bn Group Supply Distribution Midstream 2% Natural 21% 33% 32% 11% 7% GAAP 2004A. 4% 33% 28% pro-forma 2009E 2% and of9% 53% 18% 5% 2EBITDA1 19% 16% Endes
Slide 33: Financial position and net debt
Financial Net 3 0 5 10 15 20 25 30 35 (€bn) = 30.6 7.8 19.8 Gas Endesa Acquisition Combined Debt Source: 2007E Planned An The Objective Ability Agreement 32.022.0 agreement debt agreement Natural reduction to H1 Company asset structure invest of entity 2005 with debt H1 “A” disposals has with (dispo
Slide 34: Dividends, earnings and EPS
Dividends Earnings EPS Shareholders Expected 2.7 (€) 2006E New Positive 1 Notes: 2 3 €1.66 33New Before Company 2.3 accretion Group (2006) 2007E Group 1.9 impact extraordinary significant earnings dividend EPS 1.5 estimates Gas and expected will 2008E from impact evolution3 expected Natural €1.80 ha
Slide 35: Conclusions
Creating aoverview Transaction Combined Financial 34 Conclusionsleading, company overview benefits fully position integrated global energy company
Slide 36: Strategic positioning and benefits
Positioning Strategic Gas Full Benefits Enhanced Regulated Efficiency Supply Strong International Source: 35 & integration Power customer energy Company from priorities commodity business improvement asmarket increased management leading along focus estimates leadership gas mix integrated Multi scal
Slide 37: Creating a leader and value
Creating Leader ... Value Expected Attractive … 36 and together enhanced with creation our in aan aEPS solid key dividend proven fully improved with cash growth and for financial integrated expected flow track shareholders CEPS policy gas markets generation record position, position accretion synerg