Enel SpA · MIL:ENEL
Enel SpA — H1 2012 Earnings Presentation
49 slides from Enel SpA's earnings presentation, Aug 2, 2012
Slide 1: 2012 Interim Results
Enel SpA Investor Relations 2012 Interim Results August 2, 2012
Slide 2: Agenda
Enel SpA Investor Relations Agenda • Opening remarks • 2012 Interim Results • Annexes 1
Slide 3: Electricity demand vs. plan assumptions
Enel SpA Opening remarks Investor Relations Electricity demand1 vs. plan assumptions Electricity demand 1H2012 Electricity demand 2011-2016 CAGR 1H12 actual -2.1% 2.1% Italy +1 2% +1.2% Italy FY12 budget +0.4% 1H12 actual -0.1% Spain2 +1.5% Spain2 FY12 budget b d t -0.8% 0 8% 1H12 actual +1.7% Russi
Slide 4: Spanish regulation
Enel SpA Opening remarks Investor Relations Spanish regulation FY12e EBITDA impact (€mn) ● Decrease of distribution remuneration -278 ● 10% reduction of national coal volumes -9 Measures ● 10% reduction of capacity payments -9 already approved1 ● Decrease of remuneration of extra extra-peninsular pe
Slide 5: Latam rationalization process (1/2)
Enel SpA Opening remarks Investor Relations Latam rationalization process (1/2) 92% E d Endesa Oth Other Latam shareholders 60.6% 39.4% Assets Cash ENERSIS One platform for growth 4
Slide 6: Latam rationalization process (2/2)
Enel SpA Opening remarks Investor Relations Latam rationalization process (2/2) Consolidated industrial position in Latin American countries Larger financial resources to finance growth in Latam Increased visibility and value enhancement of LatAm subsidiaries Cash to fuel growth and assets consolida
Slide 7: Agenda
Enel SpA Investor Relations Agenda • Opening remarks • 2012 Interim Results • Annexes 6
Slide 8: Financial highlights: consolidated
Enel SpA 2012 Interim results Investor Relations Financial highlights: consolidated €mn 1H11 1H12 % Revenues 38,391 40,692 +6.0 EBITDA 8,929 8,282 -7.2 - recurring1,2 8,512 8,282 -2.7 EBIT 6,072 5,341 -12.0 Group net income 2,552 1,821 -28.6 1 Group net ordinary income 2,305 1,640 -28.9 (3),(4) (4)
Slide 9: From EBIT to Net Income
Enel SpA 2012 Interim results Investor Relations From EBIT to Net Income €mn 1H11 1H12 % EBIT 6,072 5,341 -12.0 Net financial charges ( (1,410) ) (1,501) +6.5 Interest charges 1,410 1,437 +1.9 Other 0 64 n.m. Net et income co e from o equity equ ty investments est e ts using equity method 63 45 -28.
Slide 10: Focus on forward electricity sales
Enel SpA 2012 Interim results Investor Relations Focus on forward electricity sales Level of total production hedged (%) Italy Spain 100 100 100 100 ~5 ~ 30 ~ 60-65 ~ 95(1) ~ 70(1) ~ 35-40 2012 2013 2012 2013(2) Latam Slovakia 100 100 100 100 ~ 20-25 ~ 30-35 ~ 25 ~75-80 75 80 ~ 75 ~ 65-70 65 70 2012
Slide 11: Group EBITDA evolution (€mn)
Enel SpA 2012 Interim results Investor Relations Group EBITDA evolution (€mn) -7.2% 8,929 -551 48 +2 -52 -41 +33 -69 +31 8,282 876 79 807 3 611 3,611 3,644 Other1 798 EGP Iberia & Latam International 757 I&N 2,025 Market G&EM 1,973 326 328 1,245 694 1H11 G&EM Market I&N Inter- Iberia & EGP Other 1H1
Slide 12: EBITDA evolution: G&EM Italy (€mn)
Enel SpA 2012 Interim results Investor Relations EBITDA evolution: G&EM Italy (€mn) -44.3% 1,245 -151 +73 -261 -212 212 694 1H11 Generation Trading Perimeter and Other 1H12 margin margin revaluation effects 11
Slide 13: EBITDA evolution: Market Italy (€mn)
Enel SpA 2012 Interim results Investor Relations EBITDA evolution: Market Italy (€mn) +0.6% 326 - +2 328 1H11 Free Regulated 1H12 market market 12
Slide 14: EBITDA evolution: Infrastructure & Networks Italy (€mn)
Enel SpA 2012 Interim results Investor Relations EBITDA evolution: Infrastructure & Networks Italy (€mn) -2.6% +119 -35 -136 2,025 1,973 1H11 Energy Connection Other 1H12 margin fees 13
Slide 15: EBITDA evolution: International (€mn)
Enel SpA 2012 Interim results Investor Relations EBITDA evolution: International (€mn) -5.1% 798 +27 -104 +36 757 - 229 265 22 22 190 86 720 Russia R i France & Belgium 357 SEE 384 Centrel 1H11 Centrel1 SEE2 France Russia 1H12 & Belgium3 1. Slovenské Elektrárne 2. Romanian, Bulgarian and Greek opera
Slide 16: EBITDA evolution: Endesa - Iberia (€mn)
Enel SpA 2012 Interim results Investor Relations EBITDA evolution1: Endesa - Iberia2 (€mn) +0.4% +97 -113 113 2,152 +25 2,161 1H11 Liberalized Regulated Other 1H12 business business 1. Enel’s GAAP figures 2. Including Ireland and Marocco 15
Slide 17: EBITDA evolution: Endesa - Latam (€mn)
Enel SpA 2012 Interim results Investor Relations EBITDA evolution1: Endesa - Latam (€mn) +1.6% 1,459 -117 +88 -8 +61 1,483 1H11 Generation Distribution Other Forex 1H12 effect 1. Enel’s GAAP figures 16
Slide 18: EBITDA evolution: Enel Green Power (€mn)
Enel SpA 2012 Interim results Investor Relations EBITDA evolution: Enel Green Power (€mn) -7.9% +16.1% 876 -181 +67 +14 -5 807 181 +36 5 695 71 10 10 57 57 264 216 197 Enel.si E l i North America Iberia and Latin America 431 431 467 Italy and Europe 1H11 Other 1H11 Italy and Iberia and North Enel.si
Slide 19: Net debt evolution (€mn)
Enel SpA 2012 Interim results Investor Relations Net debt evolution (€mn) -2 943 -2,943 (1) December 31, Cash-flow Capex Net financial Taxes Dividends3 Extra- June 30, 2011 from operations charges2 ordinary 2012 activities +1(4) +10(4) -44,629 -47,572 -2,806 -1,283 +4,699 -1,607 -2,002 +65 1. Net de
Slide 20: Agenda
Enel SpA Investor Relations Agenda • Opening remarks • 2012 Interim Results • Annexes 19
Slide 21: Production mix (TWh)
Enel SpA 2012 Interim results - Operational annexes Investor Relations Production mix (TWh) -3.1% 39.3 38.1 1.3% 2.1% 21.4% 15.7% Group production mix Italy 37.9% 49.6% +3.0% 7.8% 8.3% 144.4 148.7 31.6% 24.3% 13.2% 11.8% 1H11 1H12 16.5% 14.2% +5.2% 28.4% 31.9% 13.0% 14.0% 105.1 110.6 4.3% 5.1% 17.6%
Slide 22: 1H2012 Group total net installed capacity
Enel SpA 2012 Interim results - Operational annexes Investor Relations 1H2012 Group total net installed capacity1: breakdown by source and location MW Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 13,652 1,466 - 6,746 5,916 12,021 39,801 Iberia 4,729 1,771 3,535 5,533 4,682(2) 4,7
Slide 23: 1H2012 Group total net production
Enel SpA 2012 Interim results - Operational annexes Investor Relations 1H2012 Group total net production1: breakdown by source and location GWh Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 9,264 3,174 - 18,870 5,967 0,791 38,066 Iberia 3,033 2,154 13,734 15,947 3,090(2) 4,766(3)
Slide 24: 1H2012 renewables net installed capacity
Enel SpA 2012 Interim results - Operational annexes Investor Relations 1H2012 renewables net installed capacity: breakdown by source and location MW Hydro Geothermal Wind Other TOTAL Italy & Europe 1,532 722 1,299 106 3,659 Iberia & Latam 788 - 1,749 120 2,657 North America 313 47 830 48 1 238 1,238
Slide 25: 1H2012 renewables net production
Enel SpA 2012 Interim results - Operational annexes Investor Relations 1H2012 renewables net production: breakdown by source and location GWh H d o Hydro Geothe mal Geothermal Wind Othe Other TOTAL Italy & 2,634 2,611 1,205 48 6,498 Europe Iberia & 1,836 - 1,962 238 4,036 Latam North 565 140 1 217 1
Slide 26: Group EBITDA: regulated/unregulated activities
Enel SpA 2012 Interim results - Financial annexes Investor Relations Group EBITDA: regulated/unregulated activities 1H 2012 EBITDA 8 282 €mn 8,282 Stability and high visibility 10% 50% 40% Forward sales and hedging procurement contracts to protect Unregulated margin Regulated EGP 25
Slide 27: Enel's long-term debt maturity profile (€mn)
Enel SpA 2012 Interim results - Financial annexes Investor Relations Enel’s Enel s long long-term term debt maturity profile (€mn) Endesa E d Enel Group (excluding Endesa) 34,615 3,419 Bonds 3,844 Bank loans and others 1,154 7 954 7,954 31,196 7,156 5,931 720 2,259 4,998 1,164 2 827 2,827 5,695 6,43
Slide 28: Enel's debt maturity profile (€bn)
Enel SpA 2012 Interim results - Financial annexes Investor Relations Enel’s Enel s debt maturity profile (€bn) Total liquidity available Debt maturity profile ~34.6 ~20.2 Long term committed ~10.9 credit lines1 Bilateral revolving lines signed ~10.8 in July 2012 ~0.5 ~7.2 ~8.0 58 ~5.8 (3) ~9.7 ~5.9
Slide 29: Enel Group liquidity analysis (€mn)
Enel SpA 2012 Interim results - Financial annexes Investor Relations Enel Group liquidity analysis (€mn) Amount Outstanding Available Committed credit lines 23,550 10,276 13,274(1) Cash and cash equivalents - (8,845) 8,845 Total 23,550 1,431 22,119 Uncommitted lines 1 767 1,767 125 1,642 Commercial
Slide 30: Debt structure
Enel SpA 2012 Interim results - Financial annexes Investor Relations Debt structure1 • Average debt maturity: 6 years and 8 months • Average cost of gross debt2: 4.9% • (Fixed+hedged)/Total gross long-term debt: 68% • (Fixed+hedged)/Total net debt: 83% • Rating: Standard&Poor’s = BBB+/A-2 Stable Out
Slide 31: Enel's group financial debt evolution
Enel SpA 2012 Interim results - Financial annexes Investor Relations Enel’s Enel s group financial debt evolution1 Enel Group p((excluding g Endesa) ) Endesa Group p - Total €mn 12.31.2011 06.30.2012 12.31.2011 06.30.2012 06.30.2012 Bank loans – maturities > 12m 8,333 13,545 1,585 3,046 16,591 Bonds
Slide 32: Enel's group financial debt by subsidiary
Enel SpA 2012 Interim results - Financial annexes Investor Relations Enel’s Enel s group financial debt by subsidiary1 €mn Enel SpA Endesa EFI2 EIH2 Slovenské EP2 ED2 Other Total Bonds 17,223 6,591 18,336 297 - - - 216 42,663 Bank loans 3,312 3,418 4,244 - 844 605 2,908 2,023 17,354 Preference share
Slide 33: Enel's group financial debt
Enel SpA 2012 Interim results - Financial annexes Investor Relations Enel’s Enel s group financial debt Average cost of net debt Average cost of gross debt Average residual maturity (years:months) 5.9% 6.1% 5.5% 4.9% 4.9% 6.8 6.8 4.6% 6.7 2010 2011 1H12 2010 2011 1H12 2010 2011 1H12 Net financial de
Slide 34: Enel's long-term debt maturity profile (€mn)
Enel SpA 2012 Interim results - Financial annexes Investor Relations Enel’s Enel s long long-term term debt maturity profile (€mn) Enel Group (excluding Endesa) €mn <12m 2H13 2014 2015 2016 After 2016 Bank loans 391 263 2,566 2,660 1,126 6,930 Bonds 1,716 43 2,155 3,721 4,511 23,926 Other 64 37 46 5
Slide 35: Enel Group liquidity analysis excluding Endesa (€mn)
Enel SpA 2012 Interim results - Financial annexes Investor Relations Enel Group liquidity analysis excluding Endesa (€mn)1 Amount Outstanding Available 2009 credit facility for Endesa acquisition (2014) 1,359 1,359 - 2009 credit facility for Endesa acquisition (2016) 617 617 - Other committed credit
Slide 36: Endesa liquidity analysis (€mn)
Enel SpA 2012 Interim results - Financial annexes Investor Relations Endesa liquidity analysis (€mn)1 Amount Outstanding Available Total committed credit lines , 4,065 1,445 , 2,620 , Other short-term bank debt – uncommitted lines 1,488 9 1,479 Total credit lines 5,553 1,454 4,099 Commercial paper i
Slide 37: Capex by business area (€mn)
Enel SpA 2012 Interim results - Financial annexes Investor Relations Capex by business area (€mn)1 -3.0% 3.0% 2,846 2,762 16 91 624 457 875 933 Other2 515 573 EGP Iberia & Latam International I&N 666 579 Market 20 G&EM 12 109 138 1H11 1H12 1. Continuing operations, gross of connection fees 2. Includ
Slide 38: Balance sheet
Enel SpA 2012 Interim results - Financial annexes Investor Relations Balance sheet €mn FY11 1H12 % Net financial debt 44 629 44,629 47 572 47,572 +6 6 +6.6 Shareholders’ equity 54,440 54,631 +0.4 Net capital p employed p y 99,069 , 102,203 , +3.2 37
Slide 39: Generation & Energy Management - Italy
Enel SpA 2012 Interim results - Financial annexes Investor Relations Generation & Energy Management - Italy €mn 1H11 1H12 % Revenues 10,221 11,304 +10.6 EBITDA 1,245 694 -44.3 EBIT 956 385 -59.7 59 7 Capex 109 138 +26.6 (1) Headcount 6 277 6,277 6 181 6,181 -1 5 -1.5 1. As of December 31st, 2011 38
Slide 40: Market - Italy
Enel SpA 2012 Interim results - Financial annexes Investor Relations Market - Italy €mn 1H11 1H12 % Revenues 8,803 9,408 +6.9 EBITDA 326 328 +0.6 EBIT 180 126 -30.0 30 0 Capex 12 20 +66.7 (1) Headcount 3 745 3,745 3 711 3,711 -0 9 -0.9 1. As of December 31st, 2011 39
Slide 41: Infrastructure & Network - Italy
Enel SpA 2012 Interim results - Financial annexes Investor Relations Infrastructure & Network - Italy €mn 1H11 1H12 % Revenues 3,594 3,784 +5.3 EBITDA 2,025 1,973 -2.6 EBIT 1 567 1,567 1 502 1,502 -4.1 41 Capex 579 666 +15.0 (1) Headcount 18 951 18,951 18 846 18,846 -0 6 -0.6 1. As of December 31st,
Slide 42: International
Enel SpA 2012 Interim results - Financial annexes Investor Relations International €mn 1H11 1H12 % Revenues 3,819 4,273 +11.9 EBITDA 798 757 -5.1 EBIT 496 595 +20 0 +20.0 Capex 573 515 -10.1 (1) Headcount 13 779 13,779 13 395 13,395 -2 8 -2.8 1. As of December 31st, 2011 41
Slide 43: Iberia & Latam
Enel SpA 2012 Interim results - Financial annexes Investor Relations Iberia & Latam €mn 1H11 1H12 % Revenues 15,844 16,495 +4.1 EBITDA 3,611 3,644 +0.9 EBIT 2 197 2,197 2 145 2,145 -2.4 24 Capex 933 875 -6.2 (1) Headcount 22 877 22,877 23 047 23,047 +0 7 +0.7 1. As of December 31st, 2011 42
Slide 44: Enel Green Power
Enel SpA 2012 Interim results - Financial annexes Investor Relations Enel Green Power €mn 1H11 1H12 % Revenues 1,329 1,332 +0.2 EBITDA 876 807 -7.9 EBIT 684 570 -16.7 16 7 Capex 624 457 -26.8 (1) Headcount 3 229 3,229 3 379 3,379 +4 6 +4.6 1. As of December 31st, 2011 43
Slide 45: Other
Enel SpA 2012 Interim results - Financial annexes Investor Relations Other1 €mn 1H11 1H12 % Revenues2 1,007 , 930 -7.6 Holding 340 156 -54.1 Services 529 678 +28.2 Engineering & Innovation 201 166 -17.4 17 4 Upstream 1 1 - EBITDA3 48 79 +64.6 Holding (28) (18) +35.7 Services 94 103 +9.6 Engineering
Slide 46: Other - Continued
Enel SpA 2012 Interim results - Financial annexes Investor Relations Other1 - Continued € €mn 1H11 1H12 % EBIT2 (8) 18 n.m. H ldi Holding (33) (23) +30 3 +30.3 Services & other 45 49 +8.9 Engineering & Innovation (3) 1 +133.3 Upstream (8) (9) +12.5 Capex 16 91 +468.8 Holding 2 2 - Services & other 1
Slide 47: EBIT by business area (€mn)
Enel SpA 2012 Interim results - Financial annexes Investor Relations EBIT by business area (€mn) -12.0% 6,072 684 5,341 18 n.m. 570 -16.7% Other1 Oth 2,197 EGP -2.4% 2,145 Iberia & Latam International 496 I&N 595 +20.0% Market 1,567 G&EM 1,502 -4.1% 180 126 -30.0% 956 -59.7% 385 -8 1H11 1H12 1. Incl
Slide 48: 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 49: Contact us
Enel SpA Investor Relations Contact us Investor Relations Team (investor.relations@enel.com) (investor relations@enel com) • Luca Torchia (Head of IR) +39 06 8305 3437 • Pedro Cañamero (Equity IR) +39 06 8305 5292 • Elisabetta Ghezzi (Fixed income IR) +39 06 8305 2708 • Matteo Cavadini (Staff) +39 0