Enel SpA · MIL:ENEL
Enel SpA — 9M2010 Earnings Presentation
50 slides from Enel SpA's earnings presentation, Nov 9, 2010
Slide 1: 9M2010 Results
Enel SpA Investor Relations 9M2010 Results November 9, 2010
Slide 2: Agenda
Enel SpA Investor Relations Agenda • 9M2010 Results • Annexes 1
Slide 3: Current electricity demand evolution vs. plan assumptions
Enel SpA 9M2010 results Investor Relations Current electricity demand evolution vs. plan assumptions Electricity Electricitydemand demand9M2010 Electricity 9M2010 Electricitydemand demand2009-2014 2009-2014CAGR CAGR Italy 1.7% Italy 1.8% Spain1 3.4% Spain1 1.9% (3) (3) +3.7% +2.4% Russia 5.4% Russia
Slide 4: Update on disposals
Enel SpA 9M2010 results Investor Relations Update on disposals 0.6 2.6 0.8 8.4 1.5 0.5 1.2 1.2 HV Grid Gas distribution Upstream HV grid Gas network EGP minority Portfolio Total Italy Italy gas Russia Spain Spain Stake (1) Optimization and Other delivered non strategic assets 2009 2009 2009 2010 201
Slide 5: Financial highlights: consolidated
Enel SpA 9M2010 results Investor Relations Financial highlights: consolidated1 9M09 €mn 9M09 9M10 % Restated2 Revenues 45,687 45,796 52,972 15.7 EBITDA 12,486 12,595 13,265 5.3 - recurring3 12,121 12,230 13,265 8.5 EBIT 8,823 8,907 8,929 0.2 Group net income 4,711 4,758 3,449 -27.5 Group net ordinar
Slide 6: From EBIT to Net Income
Enel SpA 9M2010 results Investor Relations From EBIT to Net Income €mn 9M09 9M09 9M10 % restated EBIT 8,823 8,907 8,929 0.2 Net financial charges (1,006) (1,006) (2,640) n.m. 1,821 1,821 2,139 17.5 Interest charges Fair value of Acciona’s put option (970) (970) - n.m. Other 155 155 501 n.m. Net inco
Slide 7: Focus on net financial charges
Enel SpA 9M2010 results Investor Relations Focus on net financial charges (€mn) -13 2,640 111 248 501 1,976 318 155 2,139 1,821 Net financial Endesa’s Tariff deficit Post- Other 9M10 Net financial charges 9M09(1) perimeter effect regularization employment charges 9M10 and other and other effects 9M1
Slide 8: Focus on forward electricity sales
Enel SpA 9M2010 results Investor Relations Focus on forward electricity sales Level of total production hedged (%) Italy Spain 100 100 100 100 ~35 ~ 30 - 25 ~65 ~ 70 - 75 2010 2011 2010 2011 Latam Slovakia 100 100 100 100 ~ 25 - 20 ~ 30 - 25 ~ 75 - 80 ~ 70 – 75 2010 2011 2010 2011 Unhedged Hedged 7
Slide 9: Endesa's synergy programme and targets
Enel SpA 9M2010 results Investor Relations Endesa’s synergy programme and targets >1,000 717 >700 500 +13% 613 545 494 +69% 367 436 313 266 >300 157 225 217 181 178 41 2008 2008 2009 2009 2010 9M 2010 (1) 2011 2012 target achieved target achieved target achieved target target EBITDA CAPEX 89% of 201
Slide 10: Cash flow optimization (excluding Endesa): Zenith
Enel SpA 9M2010 results Investor Relations Cash flow optimization (excluding Endesa): Zenith Total pre-tax cash flow optimization (vs. 2008) U Working capital optimization 2009-2011 ~2,700 International best practice sharing Working 19% 27% Credit management capital / capex ~1,300 optimization 12% I
Slide 11: Group EBITDA evolution
Enel SpA 9M2010 results Investor Relations Group EBITDA evolution (€mn) +5.3% +1,428 +82 -102 13,265 12,595 -829 105 207 966 +13 -17 +95 884 4,602 6,030 1,109 S&H1 EGP Iberia & Latam 1,204 International 2,843 I&N Market 2,826 268 G&EM 281 2,682 1,853 1 9M09 G&EM Market I&N Inter- Iberia & EGP S&H 9M
Slide 12: EBITDA evolution – G&EM Italy
Enel SpA 9M2010 results Investor Relations EBITDA evolution – G&EM Italy (€mn) -30.9% 2,682 -177 -229 -32 -202 -189 1,853 9M09 Generation Trading Ancillary Delta Other 9M10 margin margin services Fair value 11
Slide 13: G&EM Italy: fuel cost evolution
Enel SpA 9M2010 results Investor Relations G&EM Italy: fuel cost evolution -1% 53.0 52.5 Average fuel cost (€/MWh) 9M09 9M10 +9% +7% -1% 361.8 30.4 32.6 89.6 88.5 331.8 9M09 9M10 9M09 9M10 9M09 9M10 Oil (€/ton) Gas (c€/mc) Coal (€/ton) 12
Slide 14: EBITDA evolution – Market Italy
Enel SpA 9M2010 results Investor Relations EBITDA evolution – Market Italy (€mn) +4.9% +46 -33 268 281 9M09 Free Regulated 9M10 market market 13
Slide 15: EBITDA evolution – Infrastructure & Networks Italy
Enel SpA 9M2010 results Investor Relations EBITDA evolution – Infrastructure & Networks Italy (€mn) -0.6% +241 -14 -244 2,843 2,826 9M09 Energy Connection Other 9M10 margin fees 14
Slide 16: EBITDA evolution – International
Enel SpA 9M2010 results Investor Relations EBITDA evolution – International (€mn) +8.6% +79 1,204 -47 +81 -18 1,109 275 196 55 37 188 269 Russia France & Belgium SEE 670 Centrel 623 9M09 Centrel SEE France Russia 9M10 & Belgium 15
Slide 17: Focus on Russia
Enel SpA 9M2010 results Investor Relations Focus on Russia1 Unitary price2 (€/MWh) Capacity payment (€/MW per month) 19.9 15.8 2,789 2,764 9M09 9M10 9M09 9M10 Dark spread (€/MWh) Spark spread (€/MWh) 8.4 2.1 4.2 0.9 9M09 9M10 9M09 9M10 1. Average exchange rate: 39.8 Rub/Eur 16 2. Average price exclu
Slide 18: EBITDA evolution – focus on Endesa
Enel SpA 9M2010 results Investor Relations EBITDA evolution – focus on Endesa1 (€mn) +4.2% 5,789 +169 +71 6,030 2,398 2,469 Latam 3,392 Iberia 3,561 9M09 Iberia Latam 9M10 1. 1H09 EBITDA 100% Endesa and according to Enel’s GAAP 17
Slide 19: EBITDA evolution – Enel Green Power
Enel SpA 9M2010 results Investor Relations EBITDA evolution – Enel Green Power (€mn) +9.3% +32 966 884 +34 13 -36 +52 63 29 174 226 919 951 867 867 Enel.si 700 North America 664 Iberia and Latin America Italy and Europe -19 9M09 Italy and Iberia and North Enel.si 9M10 Europe Latin America America 18
Slide 20: Net debt evolution
Enel SpA 9M2010 results Investor Relations Net debt evolution (€mn) (1) +1,070 December 31, Cash-flow Capex Net Taxes3 Dividends4 Extra- Net debt as of Forex Sept. 30, 2009 from financial ordinary Sept. 30, 2010 effect 5 2010 operations charges2 activities excl. forex effect -50,870 -49,800 -50,903
Slide 21: Agenda
Enel SpA Investor Relations Agenda • 9M2010 Interim Results • Annexes 20
Slide 22: Group EBITDA: regulated/unregulated activities
Enel SpA 9M2010 results - Annexes Investor Relations Group EBITDA: regulated/unregulated activities Production mix 9M10 EBITDA 216.9 (TWh) 13,265 €mn Stability Stabilityand andhigh high visibility 15.7% visibility 12.9% 9% 47% 25.3% 44% 14.0% 3.8% Forward 28.3% Forwardsales salesand and Unregulated
Slide 23: Production mix
Enel SpA 9M2010 results – Operational annexes Investor Relations Production mix -3.3% 63.7 (TWh) 61.6 (TWh) 5.7% 3.1% 18.3% 21.6% Group production mix Domestic 32.5% 33.7% +10.8% Domestic 6.4% 6.8% 37.1% 34.8% 195.8 (TWh) 216.9 (TWh) 15.5% 15.7% 9M09 9M10 12.2% 12.9% 26.9% +17.6% 25.3% 12.0% 14.0% 3
Slide 24: 9M2010 Group total net installed capacity
Enel SpA 9M2010 results – Operational annexes Investor Relations 9M2010 Group total net installed capacity1: breakdown by source and location MW Hydro RES Nuclear Coal CCGT Oil & gas TOTAL - other ST/OCGT Italy 14,418 1,160 - 6,836 5,946 12,056 40,416 Iberia 4,697 1,421 3,512 5,460 2,135(2) 6,331(3)
Slide 25: 9M2010 Group total net production
Enel SpA 9M2010 results – Operational annexes Investor Relations 9M2010 Group total net production1: breakdown by source and location GWh Hydro RES Nuclear Coal CCGT Oil & gas TOTAL - other ST/OCGT Italy 21,418 4,209 - 20,730 13,306 1,928 61,591 Iberia 7,720 2,272 20,278 11,054 3,535(2) 8,545(3) 53,
Slide 26: 9M2010 renewables net installed capacity
Enel SpA 9M2010 results – Operational annexes Investor Relations 9M2010 renewables net installed capacity: breakdown by source and location MW Hydro Geothermal Wind Other TOTAL Italy & Europe 1,523 695 729 4 2,951 Iberia & Latam 701 - 1,337 107 2,145 North America 314 47 406 21 788 TOTAL 2,538 742 2
Slide 27: 9M2010 renewables net production
Enel SpA 9M2010 results – Operational annexes Investor Relations 9M2010 renewables net production: breakdown by source and location GWh Hydro Geothermal Wind Other TOTAL Italy & Europe 4,885 3,721 814 1 9,421 Iberia & Latam 2,680 - 1,508 265 4,453 North America 676 178 926 134 1,914 TOTAL 8,241 3,89
Slide 28: EBITDA evolution - Services & Holding
Enel SpA 9M2010 results – Financial annexes Investor Relations EBITDA evolution - Services & Holding1 (€mn) -49.3% 207 -16 -86 105 9M09 Import Other 9M10 1. Including Engineering and Innovation division and intercompany adjustments 27
Slide 29: EBIT by business area
Enel SpA 9M2010 results – Financial annexes Investor Relations EBIT by business area (€mn) +0.2% 8,907 8,929 127 20 -84.3% 715 719 +0.6% 2,974 3,748 +26.0% 666 S&H1 762 +14.4% EGP Iberia & Latam 2,213 International 2,153 -2.7% I&N 50 G&EM 82 +64.0% Market 2,162 1,445 -33.2% 9M09 9M10 1. Including En
Slide 30: Balance sheet
Enel SpA 9M2010 results – Financial annexes Investor Relations Balance sheet €mn December 31, September 30, 2009 2010 % Net financial debt 50,870 50,903 0.1 Shareholders’ equity 45,933 48,967 6.6 Net capital employed 96,803 99,870 3.2 29
Slide 31: Debt structure
Enel SpA 9M2010 results – Financial annexes Investor Relations Debt structure1 • Average debt maturity: 6 years and 6 months • Average cost of debt2: 5.4% • (Fixed+hedged)/Total long-term debt: 91% • (Fixed+hedged)/Total net debt: 82% • Rating: S&P’s = A-/A-2 Stable outlook; Moody’s = A2/P-1 Negativ
Slide 32: Enel's group financial debt evolution
Enel SpA 9M2010 results – Financial annexes Investor Relations Enel’s group financial debt evolution1 Enel Group (excluding Endesa) Endesa Group - Total €mn 12.31.2009 09.30.2010 12.31.2009 09.30.2010 09.30.2010 Bank loans – maturities > 12m 14,227 10,729 7,405 6,462 17,191 Bonds – maturities > 12m
Slide 33: Enel's group financial debt by subsidiary
Enel SpA 9M2010 results – Financial annexes Investor Relations Enel’s group financial debt by subsidiary1 €mn Enel SpA Endesa EFI2 EIH2 Slovenské EP2 ED2 Other Total Bonds 16,215 6,618 12,756 422 194 - - 244 36,449 Bank loans 4,158 6,899 2,658 - 123 673 2,288 1,137 17,936 Preference shares - 1,472 -
Slide 34: Enel's group financial debt
Enel SpA 9M2010 results – Financial annexes Investor Relations Enel’s group financial debt Average cost of debt Average residual maturity 5.5% 5.0% 5.4% 7:7 7:7 7:1 4.7% 5.1% 6:6 4.4% 6:4 4.4% 4.3% 4.6% 5:10 5:2 4:11 4:4 (1) (1) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2003 2004 2005 2006 2
Slide 35: Enel's long-term debt maturity profile (€mn)
Enel SpA 9M2010 results – Financial annexes Investor Relations Enel’s long-term debt maturity profile (€mn)1 Endesa Enel Group excluding Endesa 31,256 3,519 10,742 27,737 5,866 5,299 5,830 2,909 1,119 855 3,224 1,317 4,876 4,711 1,592 680 2,075 175 < 12 Month IV Q 2011 2012 2013 2014 After 2014 6 ye
Slide 36: Enel's long-term debt maturity profile
Enel SpA 9M2010 results – Financial annexes Investor Relations Enel’s long-term debt maturity profile1 Enel Group (excluding Endesa) €mn <12m 4Q2011 2012 2013 2014 After 2014 Bank loans 308 123 3,778 387 2,731 3,709 Bonds 1,258 37 1,072 1,653 1,954 23,859 Other 26 15 26 35 26 169 Total 1,592 175 4,8
Slide 37: Enel Group liquidity analysis
Enel SpA 9M2010 results – Financial annexes Investor Relations Enel Group liquidity analysis (€mn)1 Amount Outstanding Available 60M credit facility for Endesa acquisition 3,417 3,417 - 2009 credit facility for Endesa acquisition (2014) 2,401 2,401 - 2009 credit facility for Endesa acquisition (2016
Slide 38: Enel Group liquidity analysis excluding Endesa
Enel SpA 9M2010 results – Financial annexes Investor Relations Enel Group liquidity analysis excluding Endesa (€mn)1 Amount Outstanding Available 60M credit facility for Endesa acquisition 3,417 3,417 - 2009 credit facility for Endesa acquisition (2014) 2,401 2,401 - 2009 credit facility for Endesa
Slide 39: Endesa liquidity analysis
Enel SpA 9M2010 results – Financial annexes Investor Relations Endesa liquidity analysis (€mn) Amount Outstanding Available Total committed credit lines 9,010 3,357 5,653 Other short-term bank debt – uncommitted lines 1,607 410 1,197 Total credit lines 10,617 3,767 6,850 Commercial paper issued by t
Slide 40: Generation & Energy Management - Italy
Enel SpA 9M2010 results – Financial annexes Investor Relations Generation & Energy Management - Italy €mn 9M09 9M10 % Revenues 13,640 12,417 -9.0 EBITDA 2,682 1,853 -30.9 EBIT 2,162 1,445 -33.2 Capex 503 411 -18.3 (1) Headcount 6,703 6,644 -0.9 1. As of December 31, 2009 39
Slide 41: Market - Italy
Enel SpA 9M2010 results – Financial annexes Investor Relations Market - Italy €mn 9M09 9M10 % Revenues 15,406 13,649 -11.4 EBITDA 268 281 +4.9 EBIT 50 82 +64 Capex 43 27 -37.2 (1) Headcount 3,962 3,949 -0.3 1. As of December 31, 2009 40
Slide 42: Infrastructure & Network - Italy
Enel SpA 9M2010 results – Financial annexes Investor Relations Infrastructure & Network - Italy €mn 9M09 9M10 % Revenues 5,079 5,168 +1.8 EBITDA 2,843 2,826 -0.6 EBIT 2,213 2,153 -2.7 Capex 762 784 +2.9 (1) Headcount 19,700 19,704 - 1. As of December 31, 2009 41
Slide 43: International
Enel SpA 9M2010 results – Financial annexes Investor Relations International €mn 9M09 9M10 % Revenues 4,062 4,754 +17.0 EBITDA 1,109 1,204 +8.6 EBIT 666 762 +14.4 Capex 671 779 +16.1 (1) Headcount 15,752 15,350 -2.6 1. As of December 31, 2009 42
Slide 44: Iberia & Latam
Enel SpA 9M2010 results – Financial annexes Investor Relations Iberia & Latam €mn 9M09 9M10 % Revenues 14,472 22,646 +56.5 EBITDA 4,602 6,030 +31.0 EBIT 2,974 3,748 +26.0 Capex 1,515 1,386 -8.5 (1) Headcount 26,305 25,057 -4.7 1. As of December 31, 2009 43
Slide 45: Enel Green Power
Enel SpA 9M2010 results – Financial annexes Investor Relations Enel Green Power €mn 9M09 9M10 % Revenues 1,259 1,517 +20.5 EBITDA 884 966 +9.3 EBIT 715 719 +0.6 Capex 564 593 +5.1 (1) Headcount 2,685 2,957 +10.1 1. As of December 31, 2009 44
Slide 46: Services & Holding
Enel SpA 9M2010 results – Financial annexes Investor Relations Services & Holding €mn 9M09 9M10 % Revenues 1,948 1,723 -11.6 Holding 514 484 -5.8 Services 779 786 0.9 Engineering & Innovation 655 453 -30.8 Other & elisions - - - EBITDA 207 105 -49.3 Holding 56 (16) - Services 142 117 -17.6 Engineeri
Slide 47: Services & Holding - Continued
Enel SpA 9M2010 results – Financial annexes Investor Relations Services & Holding - Continued €mn 9M09 9M10 % EBIT 127 20 -84.3 Holding 50 (21) - Services 70 40 -42.9 Engineering & Innovation 11 11 - Other & elisions (4) (10) - Capex 51 45 -11.8 Holding 1 2 - Services & other 49 41 -16.3 Engeneering
Slide 48: Focus on capex by business area
Enel SpA 9M2010 results – Financial annexes Investor Relations Focus on capex by business area (€mn)1 -2.0% 4,109 4,025 51 45 564 593 1,515 1,386 671 779 S&H EGP Iberia & Latam 762 784 International 43 I&N 27 Market 503 411 G&EM 9M09 9M10 1. Continuing operations only 47
Slide 49: Disclaimer
Enel SpA Investor Relations Disclaimer This presentation may contain certain statements that are neither reported financial results nor other historical information (“forward-looking statements”). These forward-looking statements are based on Enel S.p.A.’s current expectations and projections about
Slide 50: Contact us
Enel SpA Investor Relations Contact us Investor Relations Team (investor.relations@enel.com) • Luca Torchia (Head of IR) +39 06 83053437 • Pedro Cañamero (Equity IR) +39 06 83055292 Visit our website at: www.enel.com (Investor Relations) 49