Slide 1: Full Year Consolidated results
Full Year Consolidated results February 24th, 2021
Slide 2: Delivery on the strategy
FY 2020 Delivery on the strategy José Bogas CEO
Slide 3: Key highlights of the period
Key highlights of the period EBITDA Covid-19 Efficiency plans Solid results Dividends performance Excellent 4.0 €bn like 2.1 €bn Net Gaining performance for like Ordinary Outstanding flexibility for in a EBITDA, Income, shareholder’s future challenging increased by increased by remuneration challeng
Slide 4: Key ESG highlights
Key ESG highlights Environment Social Governance Our People Specific emissions Just Transition below target (1) Full remote Plans Women in BoD working extended above 30% Accelerating during Covid-19 Shared Value decarbonization Creation approach 40% approved for Valuable 500 2022 Hydrogen plan adhes
Slide 5: Financial targets delivery
Financial targets delivery 2020 2020 target(1) 2019 Δ YoY ✔ EBITDA like for like (€bn) 4.0 3.9 3.8 +5% Reported EBITDA (€bn) 3.8 3.8 -2% ✔ (2,3) Net Ordinary Income (€bn) 2.1 2.0 1.6 +36% (4) ✔ Gross DPS (€/sh.) 2.014 ~1.9 1.475 +37% Gross Capex (€bn) (5) 1.6 1.7 2.0 -19% ✔ Exceeding guidance (1) Ta
Slide 6: Latest regulatory developments
Latest regulatory developments Decarbonization and Electrification Electric System Sustainability Fund EU Recovery fund implementation Remuneration scheme for new RW capacity New methodologies for grid tariffs (“peajes”) and regulated levies (“cargos”) Spanish Energy Storage Strategy (Feb 2021) Furt
Slide 7: Decarbonization: Coal phase out
Decarbonization Coal phase out by 2027 Coal capacity evolution, GW (1) -42% Closure of domestic coal plants 5.2 (Compostilla II and Teruel) in June 2020, 4.8 Non mainland 0.5 0.2 -42% in coal installed capacity Domestic coal 2.1 2.1 Coal 2.8 Phase out Just Transition Plans to mitigate social 0.2 imp
Slide 8: Decarbonization: Reshape of our generation mix
Decarbonization Reshape of our generation mix Mainland installed capacity(1), GW Mainland production(2), TWh CO2 emissions free output, % -9% -7% 19.0 49.5 17.3 46.0 10.0 + 3.3 TWh 7.4 + 0.4 GW 13.3 Target New target +33% 2019 2020 +5% 7.7 2022 2023 3.3 26.3 3.3 25.8 73% 85% 85% 89% 8.3 - 2.1 GW -25
Slide 9: Growth in renewable generation capacity
Decarbonization Growth in renewable generation capacity Gross pipeline(1) of renewable projects, GW • 65% Solar • 2020 new capacity: +0.3 GW solar and +0.1 wind • 30% Wind • 5% BESS • Gross pipeline: 41.8 GW, 6.7 GW with connection points • Spanish auction: 50 MW solar to be operative in 2023 Net pi
Slide 10: Electrification: Maintaining leadership in the power business
Electrification Maintaining leadership in the power business Energy sold(1), TWh Customers, mn Electric mobility Charging points, k# -10% 2019 2020 +42% 98.5 88.9 Liberalized 5.8 5.7 13.3 13.3 19.4 19.1 Regulated 4.8 4.7 7.1 65.7 5.0 56.6 Total power customers 10.6 10.4 2019 2020 2019 2020 Free B2B
Slide 11: Electrification: Energy management
Electrification Energy management Liberalized sales(1), TWh Power integrated margin(1), €/MWh Output(2) hedged -11% 82.3 67.9 Unitary revenue 65.4 73.3 32.7 27.2 39.6 31.5 Variable cost(3) +20% 97% 49.6 46.1 Unitary integrated margin 33.9 57% 28.3 2019 2020 2019 2020 2021 2022 Energy purchases Mainl
Slide 12: Infrastructure and Network
Infrastructure and Network Distributed energy(1), TWh Main operative KPIs -1% OPEX €/customer NIEPI(2) (#) 126.5 -2% -% 124.7 43 42 1.4 1.4 2019 2020 2019 2020 TIEPI(3) (min) % Losses(4) -23% +4 pp 2019 2020 61 7.5 7.1 RAB (€bn) 11.7 11.7 -% 47 2019 2020 2019 2020 Quality and resiliency improvements
Slide 13: Gross Capex
Gross Capex Accelerating development in renewables and networks Gross capex(1), €bn Asset development capex, €bn By business By SDG 12% 11% 1% 34% 39% 21% 1.6 1.6 0.7 39% 57% 28% 2% 7% 28% ~80% Conventional Gx(2) Dx Renewables Dx Retail + Endesa X Renewables(3) Conventional Gx Retail + Endesa X Net
Slide 14: Financial results
FY 2020 Financial results Luca Passa CFO
Slide 15: Market context in FY 2020
Market context in FY 2020 Demand decrease and declining commodities lead to lower pool prices Demand in Spain (mainland), TWh(1) Commodities spot prices Average pool prices, €/MWh -29% -5.1% 24.00 GAS PVB; +95% 22.0€MWh +137% 14.00 Covid 11.3€/MWh 4.00 47.7 249.1 236.5 34.0 2019 2020 35.00 CO2 +33%
Slide 16: Financial highlights
Financial highlights €mn Net Income Net Ordinary EBITDA FFO Net Debt Income(2) 3,783 1,394 2,132 2,951 6,899 Reported -2% 8x 36% -7% +8% 4,027(1) Like-for-like +5% 2019 3,841 171 1,562 3,181 6,377 (1) 2020 like for like EBITDA excluding +515 €mn of provision reversal from the commitments contained i
Slide 17: Personnel cost provisions
Personnel cost provisions At EBITDA level, €mn (3) Total: +356 (1) Total: -600 (2) TOTAL -159 +515 -213 -387 -244 Provision reversal from Workforce restructuring plans Decarbonization plan: Digitalization efficiencies: Net provisions effect new Collective Agreement personnel provision personnel prov
Slide 18: Impairments
Impairments Impairments, €mn Rationale 1,873 Non mainland assets 103 • Review of technical and economic parameters in 404 Order TED/776/2020 330 Coal plants and inventories 1,366 9 338 • Acceleration of decarbonization process (1) -17 2019 2020 (2) No impact on shareholder’s remuneration: 356 €mn Co
Slide 19: Covid-19 estimated impact
Covid-19 estimated impact €mn Net of Demand Bad debt Covid-19 3,783 3,903 2020 results absorb Covid-19 effects EBITDA -2% 120 +2% D&A (1,897) 50 Bad debt provisioning amounted to 50 €mn Net In absence of Covid-19 business effects, EBITDA Ordinary 2,132 90 38 2,260 +36% +45% would have increased by 2
Slide 20: Like-for-like EBITDA evolution
Like-for-like EBITDA evolution €mn -58 €mn -2% +186 €mn +5% DYoY DYoY (1) 4,027 (like-for-like) (reported) 3,841 3,783 -81 -40 307 1,475 1,782 +21% +8% 1,600 267 227 -15% 211 -21% 2,099 2,018 -4% 1,972 -6% (2) 2019 Dx Non mainland Gx Gx+Sx 2020 2020 Reported Dx Non mainland Gx Gx+Sx EBITDA improveme
Slide 21: Efficiency through digitalization
Efficiency through digitalization Efficiency compensates the increase of inflation and growth Opex(1) evolution, €mn Efficiency KPIs (3) -4.2% 2019 2020 EGPE Unitary cost 16 17 €/MWh (2) 0 -10 19 -95 244 Unitary cost 43 42 €/end user (3) (4) 2,065 2,065 2,223 Cost to Serve 1,979 11.1 11.1 €/customer
Slide 22: Regulated business
Regulated business €mn Gross margin EBITDA Regulated margin: 3,080 €mn (-104 €mn) -3% -5% • Dx: -100 €mn, affected by the new 3,184 retributive parameters 2,366 3,080 2,245 267 2,183 538 534 227 211 • Non mainland: negatively affected by regulatory revision and Covid, offset by previous years regula
Slide 23: Liberalized business
Liberalized business(1) €mn Gross margin EBITDA Liberalized margin: 2,926 €mn +7% (+204 €mn) +21% 2,926 • Electricity & Others: 2,593 €mn 2,722 (+205 €mn) 1,782 326 209 1,600 292 1,475 209 • Gas(2): 215 €mn (+0 €mn) 223 2,430 2,600 • Endesa X: 118 €mn (-1 €mn) 1,573 1,252 1,391 Like-for-like fixed c
Slide 24: Profit & loss
Profit & loss €mn 2020 2019 Δyoy EBITDA 3,783 3,841 -2% D&A (1,897) (3,453) -45% Lower D&A coming from the impairments booked in 2019 2020 new impairment in non mainland: 338 €mn EBIT 1,886 388 +386% Net Financial Results (134) (184) -27% Lower financial expenses driven by the financial provisions u
Slide 25: Cash Flow
Cash Flow €mn -258 -227 -229 -118 -1,730 3,783 2,951 1,221 EBITDA Provisions Working Income Financial FFO Capex (2) FCF paid capital Taxes Expenses & others (1) Previous year 3,841 -277 166 -440 -109 3,181 -1,914 1,267 Delta YoY -2% -7% n.a. -48% +8% -7% -10% -4% Resilient cash flow generation durin
Slide 26: Net financial debt analysis
Net financial debt analysis €mn Gross debt Net debt evolution 7,309 6,899 6,607 410 6,377 171 Cash & Derivatives 230 875 894 1,221 1,572 Net debt 6,377 6,899 6,024 5,483 (1) 2019 2020 2019 FCF Dividends Others 2020 Regulatory working capital(2) Net debt ex-regulatory working capital ▪ Cost of Debt 1
Slide 27: 2020: a further boost to Sustainable Finance
Sustainable Finance 2020: a further boost to Sustainable Finance 2020 Sustainabilty-linked Share of Sustainable Finance transactions, €bn 2020 First-of-a-kind transactions 5.8 (SDG7 ECP Programme / Reverse 0.3 Factoring) 0.6 2020 Highlights 0.2 Diversification of financial 7.3 €bn 45% instruments 55
Slide 28: Final Remarks
FY 2020 Final Remarks José Bogas CEO
Slide 29: Shareholder remuneration
Shareholder remuneration Gross DPS evolution (€/share) +37% 100% pay-out of 2020 Net Ordinary Income 2.014 +3% +3% 1.475 DPS proposal 2020: 2.014 €/share, +37% 1.382 1.427 1.314 (1) ahead of 2019… …+6% above guidance (1.9 €/sh.) Final dividend 0.700 Interim dividend Final dividend of 1.3136 €/share
Slide 30: Delivering and exceeding 2020 targets
Delivering and exceeding 2020 targets CAGR 2020- 2020 2021 2022 2023 23 (1) EBITDA 3.8 4.0 4.1 4.3 +4% (€bn) Net Ordinary Income (2) ✔ 2.1 1.7 1.8 1.9 (€bn) Net income 1.4 (€bn) Pay out 100% 80% 70% 70% (%) Implicit DPS (3) ✔ ~2.0 ~1.3 ~1.2 ~1.3 (€/share) (4) Implicit Dividend Yield 8.9% 5.8% 5.4% 5
Slide 31: Final Remarks
Final Remarks Delivery on financial Resilient integrated Adapting the Outstanding targets above business model company for future dividend yield in a guidance with sound financial challenges challenging context strength 31 FY 2020 Results - Madrid, 24 February 2021
Slide 32: Annexes
FY 2020 Annexes endesa
Slide 33: Endesa: 2020 P&L
Endesa: 2020 P&L €mn Gx+Sx Dx Structure Adjustments TOTAL Income 15,215 2,720 563 -919 17,579 Procurements and services -11,686 -174 -44 331 -11,573 Gross margin 3,529 2,546 519 (588) 6,006 Self-constructed assets 107 148 20 0 275 Personel expenses -566 -302 -296 17 -1,147 Other fixed operating expe
Slide 34: Endesa: 2019 P&L
Endesa: 2019 P&L €mn Gx+Sx Dx Structure Adjustments TOTAL Income 17,537 2,828 638 -845 20,158 Procurements and services -14,204 -182 -44 178 -14,252 Gross margin 3,333 2,646 594 (667) 5,906 Self-constructed assets 96 175 24 0 295 Personel expenses -542 -280 -215 15 -1,022 Other fixed operating expen
Slide 35: EBITDA and Net Income bridges
EBITDA and Net Income bridges €mn EBITDA bridge, €mn Net Income bridge, €mn 13 600 253 -356 22 450 3,783 4,027 2,132 1,394 Reported H1 2020 H2 2020 EBITDA Reported H2 2020 Public Non Impairment Net Ordinary EBITDA personnel personnel like for like Net Income personnel Responsibility mainland on coal
Slide 36: Profitability and credit metrics
Profitability and credit metrics Profitability Return on invested capital Credit metrics +15.0 pp +3.7 pp -7.0 pp 56% 15.4% 50% 43% 41% 11.7% 1.7x 1.8x 2019 2020 2019 2020 2019 2020 Net Ordinary ROIC(1) FFO(2)/Net Debt Net debt/EBITDA Income/EBITDA (1) Calculated on a like-for-like basis FY 2020 Res
Slide 37: Gas operational highlights
Gas operational highlights Volumes sold(1), TWh Key figures -12% 79.8 2019 2020 D Wholesale business 12.9 70.0 11.7 Total customers 1.65 1.67 +1% (mn) Retail 66.8 58.3 Unitary margin (2) 2.7 3.1 +14% (€/MWh) 2019 2020 (1) Rounded figures FY 2020 Results - Madrid, 24 February 2021 (2) Compared 2020 v
Slide 38: Net Capex
Net Capex Accelerating renewable development Net capex(1), €bn Asset development capex, €bn By business By SDG 13% 12% 1% 33% 35% 23% 1.5 1.5 33% 0.7 56% 30% 2% 7% 30% ~80% Conventional Gx(2) Dx Renewables Dx Retail + Endesa X Renewables(3) Conventional Gx Retail + Endesa X (1) Does not include: Fin
Slide 39: Financial debt maturity calendar
Financial debt maturity calendar €bn Gross balance of maturities(1) 3.2 1.6 ▪ Average life of debt: 4.6 years 1.4 0.5 0.1 0.1 ▪ Coverage of 17 months of debt maturities 3.1 0.6 ▪ Liquidity additional strengthening by 1.2 0.1 1.1 0.3 0.3 1,285 €mn through 4 operations 0.5 0.1 0.1 0.2 0.2 0.2 2021 202
Slide 40: Installed capacity and output
Installed capacity and output Total net installed capacity, MW Total gross output(1), GWh 2020 2019 Var. (%) 2020 2019 Var. (%) Mainland 17,388 19,066 -9% 46,142 49,582 -7% Renewables (2) 7,781 7,408 5% 13,415 10,090 33% Hydro 4,749 4,748 0% 7,681 5,861 31% Wind 2,423 2,308 5% 5,235 4,127 27% Solar
Slide 41: Headcount
Headcount 2019 2020 9,952 1,687 9,591 7,573 2,011 893 2,969 7,235 1,136 2,527 2,943 2,503 2,379 5,296 2,356 4,153 794 875 4,637 442 3,596 440 1,143 1,041 Male Female Total Male Female Total Generation & Supply Distribution Structure & others FY 2020 Results - Madrid, 24 February 2021 41
Slide 42: Spanish power market
Spanish power market FY 2020 Customers(1), mn Energy sold(2), TWh 18.6 29.6 207.1 235.2 53.6 29% 33% 80.4 17.7 28.7 11.0 153.5 0.9 23% 154.8 31% 10.9 28.1 26.8 0.0 0.9 1.4 Regulated 44% Free 29% Total Regulated 47% Free 32% Total Residential Business XX% Endesa market share 42 (1) Customers: CNMC “I
Slide 43: People we work with
People we work with Plan actions 2020 2021-23 targets Gender - % of women in selection 36% women involved 50% women involved in processes(1) in recruiting processes recruiting processes • 100% of people involved • 100% of people involved Climate survey(2) • 67% of people participating • 80% of peopl
Slide 44: Local and global communities
Local and global communities Plan actions 2020(1) 2030 targets(1) High-quality, inclusive and fair education 0.3 mn beneficiaries 0.8 mn beneficiaries in 2030 Access to affordable and clean energy 1.9 mn beneficiaries 4.1 mn beneficiaries in 2030 Employment and sustainable 1.9 mn beneficiaries in 20
Slide 45: Glossary of terms (I/II)
Glossary of terms (I/II) Reference note (#) of Consolidated Item Calculation Management Report Average cost of debt (%) Cost of gross financial debt / gross average financial debt: (139 €mn) / 8,104 €mn = 1.7% 4.1 (Principal x number of days of term) / (Principal in force at the end of the period x
Slide 46: Glossary of terms (II/II)
Glossary of terms (II/II) Reference note (#) of Consolidated Item Calculation Management Report Gross Capex (€mn) Gross tangible (1,589 €mn) and intangible (234 €mn) Capex - rights of use (182 €mn) = 1,641 €mn 4.3 Long and short term financial debt (5,937 €mn + 1,372 €mn) - Cash and cash equivalents
Slide 47: 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 48: 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 48