Slide 1: Endesa 2015 Results
Endesa 2015 Results 23/02/2016
Slide 2: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net financial debt analysis 4. Business analysis 5. Final remarks 2015 Results Madrid, 23 February 2016 2
Slide 3: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net financial debt analysis 4. Business analysis 5. Final remarks 2015 Results Madrid, 23 February 2016 3
Slide 4: Highlights
Highlights Financial performance above targets Continued activities profit after taxes (+16%) Resilient EBITDA performance (-2%) in a challenging scenario €380 M early retirement provision booked allowing achievement of efficiency targets Recurrent fixed costs decreased by 6% €1.026 DPS(1): 35% incr
Slide 5: Key financial figures
Key financial figures €M 2015 2014 Change EBITDA 3,039 3,090 -2% Continued activities profit after taxes 1,090 943 +16% Net attributable income 1,086 3,337(1) -67% Net financial debt 4,323 5,420 -20% Strong free cash flow generation 2015 Results (1) Includes Latam business contribution and capital g
Slide 6: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net financial debt analysis 4. Business analysis 5. Final remarks 2015 Results Madrid, 23 February 2016 6
Slide 7: Market context in 2015
Market context in 2015 Demand Electricity wholesale prices Weighted average pool prices Spain(3) (€/MWh) Spain(1) Endesa distribution area(2) (Not adjusted) 3.1% Industry +2.6% +23% 52 42 Services +2.7% 1.8% 1.9% 1.6% Residential +3.8% 2014 2015 Adjusted for weather and working days Not adjusted • P
Slide 8: Regulatory update
Regulatory update 4Q 2015: regulatory news and CNMC settlements RD 1073/2015: annual update of unitary standard values no longer linked to CPI Order IET/2660/2015: unitary standard values for investment and O&M approved Distribution 2016 remuneration: Neutral final CNMC proposal still pendin
Slide 9: Latest regulatory reform supports business perspectives
Latest regulatory reform supports business perspectives Distribution and Regulatory stability: remuneration set until 2020 Transmission based on Investment Plans to be authorized by the Ministry Non-mainland Regulatory stability: remuneration set until 2020 Sustained tariff generation sufficienc
Slide 10: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net financial debt analysis 4. Business analysis 5. Final remarks 2015 Results Madrid, 23 February 2016 10
Slide 11: Financial results
Financial results P&L evolution: (-) 2014 Non-mainland Gx non-recurrent results (according to 3rd draft RD) and normalization of weather conditions (+) Other Operating Results (CO2 transaction) and lower D&A (+) Increase of Continued activities profit after taxes (+16%) (3) Provision adjustmen
Slide 12: Net financial debt analysis
Net financial debt analysis Net financial debt evolution Net debt (1) / 1.8x 1.4x EBITDA ratio €M 5,420 Regulatory working 1,173 4,323 capital 21 2,656 292 Regulatory working capital 805 774 4,247 • Year 2014: +€21 M cashed in from settlements 4,031 10-12/2014 (interests from 2013 tariff deficit) FY
Slide 13: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net financial debt analysis 4. Business analysis 5. Final remarks 2015 Results Madrid, 23 February 2016 13
Slide 14: 2015 EBITDA breakdown
2015 EBITDA breakdown 2014(1) 2015(1) % €M Change (%) €M % Generation & Supply 28% Generation & Supply 861 +31% 1,131 37% Distribution 55% 1,691 -7% 1,569 52% Distribution Non-mainland Gx 17% 538 -37% 339 Non-mainland Gx 11% 1 1 TOTAL(1,2) 3,090 -2% 3,039 TOTAL(1,2) 2015 Results (1) Figures impacted
Slide 15: Regulated business
Regulated business Gross margin evolution of non-mainland Gx and Dx €M -6% 3,260 3,065 -250 55 Non-mainland 870 620 Non-mainland generation generation Distribution 2,390 2,445 Distribution Margen 2014 Non-mainland Dx Margen 2015 2014 Non-mainland Gx Distribution 2015 Gross margin Gross margin Non-ma
Slide 16: Liberalized business
Liberalized business Gross margin evolution +6% €M 2,278 138 2,416 Margen 2014 Dif f Margen 2015 2014 2015 Gross margin(1) Gross margin(1) Higher volumes and underlying Higher fuel costs (higher thermal gap) and selling price and better ancillary higher energy purchase cost services Higher gen
Slide 17: Liberalized business
Liberalized business Energy management Mainland output (GWh) 2015 energy management Electricity sources Electricity sales 60,686 57,502 +6% 101TWh 101 TWh 3,477 1,786 SCVP purchases(1) 18 18 SCVP sales(1) 12,919 15,293 Energy purchases Unit purchase cost 22 9,257 8,984 €51/MWh Mainland 83 Liberalize
Slide 18: 2014 and 2015 workforce restructuring plans
2014 and 2015 workforce restructuring plans Details Action plan Amount and headcount breakdown by business line Generation Virtual mothballing in CCGTs €M 91 Coal plants cost reduction Provision amount: €349 M Management optimization of power plants in Balearic Islands 116 156 2014 People
Slide 19: Fixed costs evolution (I/II)
Fixed costs evolution (I/II) -0.2% €M 2,448 -6% 2,442 (1) 278 2,170 2,039 403 (2) Personnel Costs 1,245 1,332 967 -4% 929 O&M Costs 1,316 1,316 -8% 1,212 1,212 Capitalized costs -113 -113 -102 -102 2014 2014 2015 2015 Reported Adjusted Adjusted Reported Reported fixed costs flat Adjusted by non-recu
Slide 20: Fixed costs evolution (II/II)
Fixed costs evolution (II/II) Monitoring cash cost and key performance indicators Cash cost (€bn) Committed KPI’s 2019 target Generation k€/MW 51 -2% 49 49 0.3 0.4 2014 2015 0.6 0.6 0.6 Distribution €/customer 59 -10% 53 FY 2014 49 adjusted ~€2.8bn 2014 2015 2.2 2.0 2.0 €/customer Supply 12 0% 12 11
Slide 21: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net financial debt analysis 4. Business analysis 5. Final remarks 2015 Results Madrid, 23 February 2016 21
Slide 22: Corporate social responsibility
2015 Results Madrid, 23 February 2016 Corporate social responsibility Endesa is committed with all stakeholders Outstanding position in most relevant SRI indexes (DJSI, CDP, Euronext Vigeo, ECPI…) Emission free production >45% 100% Energy certified by ISO 14001 Total Tax Contribution ~ €4bn
Slide 23: Shareholder remuneration
Shareholder remuneration Ordinary DPS evolution 2016(2) 1.026(1) €/Share Maximum amount per share 0.76 between (1) • 100% Pay-out 0.626 • Minimum annual growth of 5% on the ordinary DPS paid against 0.38 2015 year’s profit 2017-2019(2) 0.38 0.40 100% Pay-out of ordinary net Payment date 1 Jan 20
Slide 24: Final remarks
Final remarks Exceeding financial targets Resilient results supported by efficiencies and successful energy management strategy ~ 65% of total EBITDA coming from regulated business High cash flow generation allows net financial debt reduction … …and supports our attractive dividend policy 2015 Resul
Slide 25: Appendix
Appendix Endesa 2015 Results 25
Slide 26: Installed capacity and output
Installed capacity and output(1) GW at 31/12/15 GWh 2015 (and chg. vs. 31/12/14) Installed capacity (2) (and chg. vs. 2014) Output (3) Total 21.2 -2% 73,061 +4.9% Hydro 4.7 0% 7,176 -18% Nuclear 3.3 0% 25,756 +4% Coal 5.3 0% 26,139 +7% Natural gas 5.4 0% 7,495 +35% Oil-gas 2.4 -17% 6,495 +4% (1) Inc
Slide 27: Endesa: financial debt maturity calendar
Endesa: financial debt maturity calendar Gross balance of maturities outstanding at 31 December 2015: €4,669 M(1) Bonds Bank debt and others ECPs and domestic commercial paper (2) 3,875 Endesa's liquidity 3,843 covers 29 months 525 of debt maturities 117 119 66 84 393 83 66 69 15 32 15 2.016 36 2.01
Slide 28: Gross financial debt structure
Gross financial debt structure as of December 31st 2015 Structure of Endesa's gross debt €M 4,680 4,680 Floating 24% Euro 100% Fixed 76% Average cost of debt 2.7% 2015 Results Madrid, 23 February 2016 28
Slide 29: 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 30: Endesa Corporate
Endesa Corporate Get full information of the company on Endesa Corporate, the Endesa App for iPhone, iPad and Android devices. Download from App Download from Google Store Play 2015 Results Madrid, 23 February 2016 30