Slide 1: Presentation Press Dossier, Lisbon
Lisbon, June 20 th , 2006 PRESENTATION Press Dossier
Slide 2: ENDESA: A World Leader
EWM endesa Portugal Po ENDESA: A World Leader
Slide 3: Endesa is a global gas and electricity company
Endesa is a global gas and electricity company Operating in 15 countries Installed capacity of 46 GW 185 TWh produced 203 TWh sold 23 million customers in the electricity market 21 gas bcms under medium term portfolio More than €55,000M assets Data as of end 2005
Slide 4: Endesa: a large and diversified business base
Endesa: a large and diversified business base Spain and Portugal Europe Latin America Capacity 2005 (MW ) 22,416 9,397 14,095 GWh 2005 93.625 100.868 33.749 47.221 57.890 55.246 Production Sales EBITDA 2005 (€ bn) Assets (2.005) (€ bn) 3,266 887 1,878 30,204 6,837 17,136 Geographically diversified O
Slide 5: Diversified and balanced asset portfolio by business line and regions
Endesa has a diversified and balanced asset portfolio by business line and regions EBITDA 2004* EBITDA 2005** EBITDA 1Q06 €4,521M €6,020M €1,947M *Other business -€8M **Other business -€11M **Other business -€4M 34% 12% 55% 31% 54% 15% 30% 17% 53%
Slide 6: First Quarter Results 2006
First Quarter Results 2006 EBITDA: €1,947 M Latin America +31% Spain and Portugal +26% Europe +38% 30% 53% 17% Latin America +42% Spain and Portugal +39% Europe +49% 31% 52% 17% EBIT: €1,491 M Net Profit: €1,052 M +42% +88% Auna N.A. Latin America +171% Europe +4% Spain and Portugal +49% 16% 19% 54%
Slide 7: Investment Plan 2005-2009
Investment Plan total: €14,600 M Investment Plan 2005-2009 €bn 2005 2005-09 Latin America 17% Europe 12% Spain and Portugal 71% Spain and Portugal 2.5 10.3 New capacity 0.9 4.6 Maintenance capex 1.6 5.7 Rest of Europe 0.4 1.8 New capacity 0.4 1.4 Maintenance capex 0.0 0.4 Latin America 0.5 2.5 New c
Slide 8: Latin America
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Slide 9: Largest private electricity company in Latin America
Largest private electricity company in Latin America Colombia Peru Brazil Argentina Chile # 1 in Latin America 14,100 MW installed 58 TWh produced 55 TWh sold 11 million customers in the electricity market 5.5 bcms of gas under medium term portfolio Data as of end 2005
Slide 10: Latin America: diversified and balanced asset portfolio
Endesa Portugal Diversified and balanced asset portfolio 1.878M €1.878M (+23%) (+23%) EBITDA 2005 EBITDA 2005 (*) (*) Chile Chile 557M €557M€ Colombia Colombia 468M €468M€ Brasil Brazil 512M €512M€ Per Perúu 228M €228M€ Argentina Argentina 170M €170M€ (*) Includes €57M in adjustments • The largest p
Slide 11: Latin America Results 2005
endesa Portugal Results 2005 Latin America 2004 2005 Variation tion €M Sales Gross margin EBITDA EBIT Financial expenses Net income 1,522 1,054 127 -453 4,297 2,180 +23% +32% +106% +19% +20% +24% 1,878 1,376 262 -540 5,149 2,698 431 +65% 710 Net income before adjustments 11
Slide 12: Latin America 1Q 2006 results
endesa Portugal Latin America 1Q 2005 1Q 2006 Variation tion €M Sales EBITDA EBIT Net income (1) 432 324 72 -121 1,139 591 +36% +42% +171% +16% +34% +35% 588 461 195 -140 1,531 800 192 +106% 396 Gross margin Financial expenses Net income before adjustments 12 (1) Includes an impact of €101M for the
Slide 13: Europe
Europe jeBnyog esepue figs 13
Slide 14: Endesa: a strong position in Europe
Endesa: a strong position in Europe Italy Italy Poland Poland Trading Trading Morocco Morocco France France 9,400 MW installed 9,400 MW installed 34 34 TWh TWh produced produced 47 47 TWh TWh sold sold 6 gas 6 gas bcms bcms under under medium term medium term portfolio portfolio 330 MW 330 MW Dolna
Slide 15: Europe EBITDA 2005 by country
Endesa Portugal 887M €887M€ (+38%) (+38%) Italia Italy 694M €694M€ EBITDA 2005 EBITDA 2005 France 179M €179M€ 14M €14M€ • Our position in Europe is coveted by our Our position in Europe is coveted by our competitors competitors • Unmatched assets portfolio: Unmatched assets portfolio: ⑀⍂⑀⍂ Italy: th
Slide 16: Europe Results 2005
Endesa Portugal 2004 2005 Variation tion 535 370 -63 2,557 830 +66% +67% +0% +41% +47% 887 618 -63 3,598 1,223 Sales Gross margin EBITDA EBIT Financial expenses €M 169 +52% 257 Net income without disposals 169 +151% 425 Net income 16
Slide 17: Europe 2006 First Quarter Results
2006 First Quarter Results Europe Endesa Portugal 1Q 2005 1Q 2006 Variation tion 234 173 -15 1,000 317 +38% +49% -27% +17% +28% 322 257 -11 1,165 407 Sales Gross margin EBITDA EBIT Financial expenses €M 78 (1) +51% 118 Net income without disposals 114 +4% 118 Net income 17 (1). Does not include more
Slide 18: Spain and Portugal
Spain and Portugal endesa Portugal 18
Slide 19: Spain and Portugal: one of the three main businesses of ENDESA
Spain and Portugal: one of the three main businesses of ENDESA ENDESA endesa Portugal Spain and Portugal Europe Latin America ⑀⏇ENDESA has structured its activities into three large business lines: Spain and Portugal, Europe and Latin America ⑀⏇Each of these three business lines have management auto
Slide 20: Aims for the Electricity business in Spain and Portugal
Endesa Portugal Plan for capacity development Plan for the supply of Gas Plan for commercial development Aims for the Electricity business in Spain and Portugal Putting the development of MIBEL into perspective, Endesa is Putting the development of MIBEL into perspective, Endesa is organised for a c
Slide 21: MIBEL is a reality and also an opportunity
MIBEL is a reality… • Important steps have been taken to create MIBEL • There is a calendar designed by governments of both countries with concrete dates for its implementation • MIBEL will be a step towards the creation of a single European electricity market ...and also an opportunity • Spain and
Slide 22: The new domestic market of reference will be MIBEL
endesa Portugal The new domestic market of reference will be MIBEL • Reduction in electricity prices due to Reduction in electricity prices due to greater competition. This will also greater competition. This will also imply an increase in competiviness of imply an increase in competiviness of the c
Slide 23: Endesa: Spain and Portugal
Endesa: Spain and Portugal 22,400 MW installed 22,400 MW installed 101 101 TWh TWh sold sold 12 million customers in 12 million customers in the electricity market the electricity market 9.5 gas 9.5 gas bcms bcms under under medium term portfolio medium term portfolio Spain and Portugal Investments
Slide 24: Spain and Portugal Results 2005
endesa Portugal 2004 2005 Variation tion 2,472 1,432 -501 6,648 4,352 +32% +58% +20% +32% +20% 3,266 2,264 -602 8,761 5,202 Sales Gross margin EBITDA EBIT Financial expenses €M 888 +53% 1,358 Net income 24 Endesa Portugal
Slide 25: Spain and Portugal 1Q 2006 results
Sales Gross margin EBITDA EBIT Financial expenses €M 1Q 2005 1Q 2006 Variation tion 824 558 -113 2,048 1,247 +26% +39% -28% +26% +22% 1,037 773 -81 2,578 1,527 Net income 380 +49% 568 Spain and Portugal 25 Endesa Portugal
Slide 26: Solid business mix and market shares in Spain
• Solid business mix in any regulatory scenario • Competitive and stable generation average fuel cost, under any regulatory scenario, commodity price variation or hydro condition • A capacity plan of 6,300 MW in 2004-2009, which optimises the value of the current portfolio • The most active player i
Slide 27: Endesa in Portugal: an attractive market
endesa portugal 6% of total capacity installed 12% of output on the ordinary regime 10% of output in renewables and CHP regime 37% of energy supplied under the liberalized market Endesa in Portugal: an attractive market Conventional generation TEJO ENERGIA (38.9%) 600MW coal 4.7 TWh PPA for the ener
Slide 28: Endesa in Portugal - Generation
Endesa in Portugal - Generation Endesa portugal Abrantes Abrantes • Tejo Energia shareholder, candidate company for two 400 MW units in Pego - Abrantes • 2009 to start operations Sines Sines • Candidate in partnership with EDP for the installation of two 400 MW units • 2011 to start operations Obtai
Slide 29: Endesa in Portugal - Renewables & CHP
Endesa in Portugal - Renewables & CHP FINERGE FINERGE • Company 100% Endesa, 4th largest wind energy player in Portugal • 107 MW in operation • 96.8 MW under construction • 385.9 MW in development TP TP • Joint Venture with Sonae (50-50%) • One of the main players of CHP • 56 MW in operation • 14 MW
Slide 30: Endesa in Portugal - Supply
endesa Portugal Endesa in Portugal - Supply SODESA SODESA • JV with Sonae (50%-50%) • 22% market share of the Portuguese liberalized market • 2,223 GWh sold • 2,705 customers Supply: patnership with Sonae (Sodesa) • Entering the Low Voltage market segment in September 2006 • 4,000 GWh of energy supp
Slide 31: Main operational data as of December 31st, 2005
Main operational data as of December 31st, 2005 233 135 2,191 1,820 362 2,705 2,223 396 Endesa’s stake 107 2,705 2,705 - - - Supply (no. of customers) 2,223 2,223 - - - Supply (GWh) 454 - 270 184 - ⑀⍽ Renewables & CHP 4,702 - - - 4,702 ⑀⍽ Ordinary regime 5,156 - 270 184 4,702 Electricity production
Slide 32: Main financial data of Portuguese companies
87.8 - 7.9 3.7 76.2 290.7 3.2 24.5 35.5 227.5 494.4 - 67.4 16.8 410.1 206.8 - 11.5 9.9 185.4 777.8 - 127 34.2 616.5 TOTAL Sodesa Finerge TP-S. Térmica Portuguesa Tejo Cash Flow from Operations Sales Liabilities Equity Assets (1) Sodesa not considered €M 15.4(1) 132.3 235.4 88.6 384.5 Endesa’s stake
Slide 33: Endesa's revenues in Portugal
Endesa’s revenues in Portugal In 2005 In 2005 ENDESA ENDESA’s revenues surpassed revenues surpassed €300M 300M Revenues from Endesa Energia, S.A. (€M) 100% 139.3 107.2 Endesa Energía S.A. 547.9 50.5 All Portuguese Companies + Endesa Energía Total revenues from by the Endesa Group in Portugal (€M) 50
Slide 34: Targets 2005-2009
2005-2009 • New capacity in ordinary regime: • New capacity in renewables: • Supply: • Investment: + 800 MW + 500 MW 4000 GWh in 2010 €1,000 M Endesa Portugal
Slide 35: Endesa in Portugal
ENDESA IN PORTUGAL • Demonstrated commitment with the development of the electricity liberalized market • Support to the creation of MIBEL • Active Portuguese partnerships • Contribution to the security of supply 35 Endesa Portugal
Slide 36: Important Legal Information
Important Legal Information •Investors are urged to read Endesa’s Solicitation/Recommendation Statements on Schedules 14D-9 filed and/or to be filed with the U.S. Securities and Exchange Commission (the “SEC”), as they will contain important information. The Solicitation/Recommendation Statements an