Endesa S.a. · BME:ELE
Endesa — H1 2022 Earnings Presentation
33 slides from Endesa's earnings presentation, Jul 27, 2022
Slide 1: First Half 2022 Consolidated results
First Half 2022 Consolidated results July 27th, 2022 5 1
Slide 2: 1H 2022 Consolidated results - José Bogas, CEO
1H 2022 Consolidated results José Bogas CEO 2
Slide 3: Key highlights of the period
Key highlights of the period Decarbonization Investment Business Energy crisis in Europe performance E.U. approach Solid investment Macro scenario with trend EBITDA lfl +4% and energy decarbonization ~930 M€ and self- (+17% reported) context and Net Ordinary deterioration sufficiency as the >70% in
Slide 4: Market context
Market context Record high power prices driven by gas extreme volatility Mainland demand in Spain (TWh)(1) Commodities spot prices Average pool prices (€/MWh) 240 GAS PVB (€/MWh) 210 +252% 2021 Average: 23.0 €/MWh 180 -1.8% 2022 Average: 93.3 €/MWh 150 120 90 206 60 +305% 120 118 30 0 59 1-Jan 16-Ja
Slide 5: Regulatory developments
Regulatory developments ▪ New guidelines for temporary measures to help curb high electricity prices ▪ New targets: Updated • Renewable targets: from 40% to 45% by 2030 REPowerEU • Energy savings target: from 9% to 13% vs 2020 package • Imports diversification and grid & interconnections reinforceme
Slide 6: Renewable production still affected by low hydro availability
Renewable production still affected by low hydro availability Installed capacity(1) (GW) Production(2) (TWh) -2% 22% 17.3 0.7 16.9 +100% -1.1 +5% 7.7 8.4 +9% 25.2 53% +11% vs. 1H2021 -1.2 TWh 3.3 Hydro 3.3 24% 6.3 5.2 -13% -17% Variation vs. 1H2021 1H 2021 RW Thermal 1H 2022 CO2 free 64% 70% CO2 emi
Slide 7: Around 80 GW pipeline supporting renewable acceleration
Around 80 GW pipeline supporting renewable acceleration Renewables pipeline(1) (GW) 2022-24 Additional capacity target(1) (GW) 0.1 18 4,0 2.0 1.9 77 47 In operation In execution Residual target 10 1.9 Gross Pipeline BESS Early stage Mature pipeline In execution (2) 2022 target (in operation ~90% ~9
Slide 8: Outstanding increase in liberalized customers through reliable and attractive commercial offers
Outstanding increase in liberalized customers through reliable and attractive commercial offers Free power sales(1) Free power customers (TWh) (mn) Endesa X KPIs +1% +18% + 1 mn 1H 2021 1H 2022 37.3 37.7 6.6 9.4 10.3 5.6 E-home contracts 2.0 2.5 +25% (mn) Charging points(2) 6.2 (k#) 8.0 11.1 +39% 5.
Slide 9: Iberian free power margin on track to reach full year target
Iberian free power margin on track to reach full year target Free Power sales (1) (TWh) Free power margin (2) (€/MWh) Output hedged (5) 9.4 TWh +2% 12.2 TWh +28% indexed indexed sales sales 36.0 36.7 11.4 32 100% 13.2 (3) 88% 25 22.8 25.3 1H 2021 1H 2022 1H 2021 1H 2022 2022 2023 Energy purchases Ma
Slide 10: Continued improvement in network performance
Continued improvement in network performance Distributed energy (TWh) Losses (%) TIEPI(1) (min.) +3% -0.1 pp -8% 64.2 66.1 7.4 31.3 7.3 28.8 1H 2021 1H 2022 1H 2021 1H 2022 1H 2021 1H 2022 Energy to own customers(2) (TWh) 53.1 53.8 +1% (1) Tiempo de Interrupción Equivalente a la Potencia Instalada (
Slide 11: 1H 2022 Financial results - Luca Passa, CFO
1H 2022 Financial results Luca Passa CFO
Slide 12: Financial highlights (€mn)
Financial highlights (€mn) EBITDA lfl Net Ordinary Income Adjusted FFO(2) +4% -12% +32% 564 426 (1) (1) 733 1,878 1,950 832 734 492 -66 -169 1H 2021 1H 2022 1H 2021 1H 2022 1H 2021 1H 2022 Regulatory working capital variation Reported Reported Net EBITDA 1,878 2,188 +17% Income 832 916 +10% Reported
Slide 13: EBITDA like for like increase by 4%
EBITDA like for like increase by 4% Gross capex by business (€mn) EBITDA by business(1) (€mn) +72 €mn +4% 11% 3 (2) 2,188 DYoY 560 -410 1,950 1,878 -81 956 +141% 17% 396 42% Gx+Sx +153 €mn (+17%) 956 934 257 260 +1% +26% vs. 270 260 98 1H2021 -64% 955 874 874 -8% 31% -140 1H 2022 1H 2021 lfl 1H 2022
Slide 14: Generation+Supply: integrated business model drives EBITDA lfl increase
Generation+Supply(1): integrated business model drives EBITDA lfl increase +17% +153 €mn 18 -30 -29 278 -236 152 -188 €mn Social bonus CO2 sentence sentence +238 €mn ex non-recurrent 1,076 923 -48 €mn 2013 hydro canon Gross margin +182 €mn EBITDA lfl Non recurrent Non recurrent Liberalized Endesa X
Slide 15: Networks: results affected mainly by previous year resettlement
Networks: results affected mainly by previous year resettlement -8% -81 €mn -29 -27 -25 Gross margin -56 €mn 955 874 EBITDA 1H 2021 Previous year Others gross margin Fixed costs & others EBITDA 1H 2022 resettlement 1H 2022 Results - Madrid, 27 July 2022 15
Slide 16: Fixed costs evolution
Fixed costs evolution Fixed costs evolution, €mn KPIs Renewables 1H 2021 1H 2022 +6% Unitary cost(1) 15 19 +27% €/MWh 1,025 967 28 -40 Networks 70 499 +7% 466 Unitary cost(1) 41 45 +10% €/end user Customers 607 660 +9% Cost to Serve(2) Opex/customer, €/cl. 11.0 11.6 +5% Digital Interactions -106 -13
Slide 17: Net Ordinary Income evolution
Net Ordinary Income evolution €mn -12% -87 • Net Ordinary Income 310 -64 -44 -31 -12% -182 Including 238 €mn • EBITDA +17% from Endesa X Endesa X Way Way net effect • D&A +11% mainly from 916 832 734 higher activity • Financial results impacted by net late payment 1H 2021 Net EBITDA D&A Financial Ta
Slide 18: FFO affected by temporary current commodities scenario and regulatory working capital increase
FFO affected by temporary current commodities scenario and regulatory working capital increase €mn Working capital & others -1.8 €bn -756 €mn Non- mainland o/w -0.5 €bn temporary -219 • ~-600 €mn from energy market context • -152 €mn Social Bonus accounted in 1H22 pending to cash in 2,188 • ~+230 €m
Slide 19: Liquidity strengthened at a competitive cost of debt
Liquidity strengthened at a competitive cost of debt Net debt evolution (€mn) Financial KPIs 10,275 536 162 8,806 926 1,528 169 2021 1H 2022 Δ 795 Net debt/EBITDA 2.1x 2.2x +0.1x 8,011 8,747 Cost of debt 1.5% 1.1% -0.4 bp Sustainable debt 60% 62% +2 pp 2021 FFO Cash Capex (1) Dividends Others (2) 1H
Slide 20: Steady growth in sustainable finance in a challenging context
Steady growth in sustainable finance in a challenging context 1H 2022 Sustainability-linked instruments Sustainable Finance (€bn)(1) Amount KPIs Pricing (€bn) adj. • Ongoing scouting in all the 62% Loans 2.3 range of financial products RCFs (2) 1.0 14.3 €bn • SDG7 ECP Program limit gross debt increa
Slide 21: Closing Remarks
Closing Remarks Leveraging on integrated Remarkable On track to business increase in ~90% 2022 FY2022 model in an liberalized renewables guidance extremely customer target already volatile base in execution energy scenario 1H 2022 Results - Madrid, 27 July 2022 21
Slide 22: 1H 2022 Annexes
1H 2022 Annexes encesa
Slide 23: Endesa: 1H 2022 P&L
Endesa: 1H 2022 P&L €mn Conventional Gx Renewables Retail Endesa X Dx Structure Adjustments TOTAL Income 6,250 501 12,861 158 1,222 217 -6,358 14,851 Procurements and services -4,098 -92 -12,867 -77 -75 170 6,083 -10,956 Income and expenses from energy derivatives -983 -24 83 0 0 1 0 -923 Gross marg
Slide 24: Endesa: 1H 2021 P&L
Endesa: 1H 2021 P&L €mn Conventional Gx Renewables Retail Endesa X Dx Structure Adjustments TOTAL Income 2,629 419 6,262 123 1,288 248 -1,937 9,032 Procurements and services -1,832 -61 -5,795 -60 -85 -24 1,592 -6,265 Income and expenses from energy derivatives -30 0 60 0 0 0 49 79 Gross margin 767 3
Slide 25: Installed capacity and output
Installed capacity and output Total net installed capacity (MW) Total gross output(1) (GWh) 1H 2022 2021 Var. (%) 1H 2022 1H 2021 Var. (%) Mainland 16,996 16,877 +1% 25,251 22,809 +11% Renewables (2) 8,508 8,389 +1% 6,215 7,182 -13% Hydro 4,746 4,746 -0% 2,480 3,703 -33% Wind 2,602 2,546 +2% 2,831 2
Slide 26: Gas operational highlights
Gas operational highlights Volumes sold(1) (TWh) Key figures 1H 2021 1H 2022 Δ -12% Total customers (mn) 1.7 1.8 +6% 40.7 35.9 Total Gas margin (€mn) 29 -42 -242% Total unitary margin (€/MWh) (2) 0.7 -1.2 -261% Of which: Margin Retail (€mn) 95 -34 -136% 1H 2021 1H 2022 Retail unitary margin (€/MWh)
Slide 27: Financial debt maturity calendar
Financial debt maturity calendar €bn Gross balance of maturities(1) 4.9 4.1 2.2 2.8 ▪ Average life of debt: 4.0 years 0.0 0.1 3.1 1.7 ▪ Fixed rate 49% of Gross Debt 2.7 0.1 2.7 0.3 0.5 1.6 ▪ 99% in Euros 1.0 0.1 0.3 0.1 0.5 2022 2023 2024 2025 2026 2027+ ECP’s and other marketable securities (2) Ban
Slide 28: Final headcount
Final headcount 2021 1H 2022 9,258 9,215 (1) 1,393 1,413 6,894 6,812 712 729 5,037 5,065 3,824 3,821 2,364 2,403 681 684 2,358 1,213 2,828 2,262 1,244 2,737 470 475 Male Female Total Male Female Total Distribution Generation & Supply Structure & others 1H 2022 Results - Madrid, 27 July 2022 (1) Fina
Slide 29: ESG
Key ESG highlights ESG Environment Governance • Scope 1 emissions: 203 gCO2e/kWh Social • Women participation in Board of Directors: • Mainland RES capacity vs mainland total 42.0% capacity(1) : 70% • Women in hiring: 34.6% • Complaints for non-compliance with the Code of • Emissions CO2 (mainland)
Slide 30: 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: (71 €mn x (360/180)) / 13,523 €mn = 1.1% 12.2 (Principal x number of days of term) / (Principal in force at the end of the
Slide 31: Glossary of terms (II/II)
Glossary of terms (II/II) Reference note of Consolidated Item Calculation Management Report Gross tangible (720 €mn) and intangible (235 €mn) Capex - rights of use (20 €mn) + Others (-1 €mn) = Gross Capex (€mn) n/a 934 €mn Long and short term financial debt (9,910 €mn + 4,406 €mn) - Cash and cash eq
Slide 32: 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 33: 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 33