Slide 1: Endesa 1H 2013 results
31 | 07 | 2013 endesa 1H 2013 results
Slide 2: Business context in 1H 2013
consolidated results 1H 2013 Business context in 1H 2013 Demand Spain(1) Endesa distribution area(2) +2.4%(3,4) Latin Spain: (Not adjusted) America: demand +1.5%(3) Industry -4.0% better decrease in all +5.7% performance of -6.2% +4.8% categories of Services Endesa +3.8% clients, +3.1% +2.7% distrib
Slide 3: Operating results supported by one-off gain in Latam (Argentina Dx)
consolidated results 1H 2013 Operating results supported by one-off gain in Latam (Argentina Dx) that offset negative regulatory effects in Spain €M 1H 2013 1H 2012 Change Revenues 15,892 16,696 -5% Gross margin 5,375 5,336 +1% EBITDA 3,583 3,547 +1% Spain&Portugal 1,833 2,040 -10% Latin America 1,7
Slide 4: Spain: regulation update (I)
consolidated results 1H 2013 Spain: regulation update (I) Wide, complex and still not finalized regulatory changes that make it difficult to precisely asses their economic impact Status • RDL 9/2013 In force • Draft of Electricity Sector New Project of Law Draft • 7 RD drafts (Tx, Dx, net balance,
Slide 5: Spain: regulation update (II)
consolidated results 1H 2013 Spain: regulation update (II) Rest of 2013 & 2014 From 2015 on Implicit RAB Explicit RAB: physical units (real with Remuneration: efficiency factor), standard investment and • 2013: State 10 yr bond +1% O&M costs • 2014: State 10 yr bond +2% (ca. Distributors to
Slide 6: Spain: regulation update (III)
consolidated results 1H 2013 Spain: regulation update (III) 2012 & 2013 From 2014 on Retroactive measures: Remuneration: State 10 Yr bond + 2% (ca. • Decrease of fuel reference price 6.5%) on net assets • Cut in logistic costs Update of generation efficiency standards • No capacity payment for
Slide 7: Spain: regulation update (IV)
consolidated results 1H 2013 Spain: regulation update (IV) Current preliminary estimate according to present understanding and available information: Expected annual Expected annual €M impact FY 2013 impact FY 2014 • Distribution(1) ~117 ~189 Measures announced in • Capacity payments ~18 ~38 July
Slide 8: Spain: regulation update (V)
consolidated results 1H 2013 Spain: regulation update (V) Announced measures bring, we believe, substantial improvements to the system: • Mandatory mechanisms to control future deficits • More fair percentages to finance future tariff deficits below caps starting 2014 • Increased State guarantee i
Slide 9: Latam: regulation update (I)
consolidated results 1H 2013 Latam: regulation update (I) Dx: MMC recognition from May 2007 to February 2013: • €301 M positive impact on EBITDA • Resolution SE Nº 250/13 (7th May 2013) authorized Edesur to recognize the accrued MMC (inflation index) as revenue and to compensate this credit with:
Slide 10: Latam: regulation update (II)
consolidated results 1H 2013 Latam: regulation update (II) Peru Edelnor tariff review progress according to schedule. New tariffs to be published in Nov. 2013 Dx: Regulator (CREG) issued a resolution defining the criteria for the next tariff review (2014-2018): Colombia • WACC to be updated acco
Slide 11: Sound financial position
consolidated results 1H 2013 Sound financial position Net debt evolution in 1H 2013 (€M) 8,778 1,520 1,045 339 950(2) 49 384 361 6,988(3) 1.0x Enersis 4,144 Financing of new tariff deficit (1): -€1,472 M Pending Includes € 818 M from Non- Mainland tariff deficit securitization: €1,811 M 3,419 1.0x 4
Slide 12: Spain&Portugal 1H 2013
spain&portugal 1H 2013
Slide 13: Highlights in 1H 2013
spain&portugal 1H 2013 Highlights in 1H 2013 Margin negatively affected by regulatory measures (RDL 13/2012, RDL 20/2012, Law 15/2012 and RDL 2/2013) Output generation (-21%)(1): strong demand decline jointly with lower thermal gap. 73% of total output from nuclear & hydro (vs 51% in 1H 12) Signific
Slide 14: Results affected by regulatory measures
spain&portugal 1H 2013 Results affected by regulatory measures €M 1H 2013 1H 2012 Change Revenues 10,757 11,445 -6% Gross margin 2,900 3,148 -8% EBITDA 1,833 2,040 -10% EBIT (1) 955 1,269 -25% Net finance expenses(2) 65 127 -49% Net attributable income 723 893 -19% Iberia: regulatory measures impact
Slide 15: Regulatory measures impacting both liberalized and regulated business margins
spain&portugal 1H 2013 Regulatory measures impacting both liberalized and regulated business margins €M 3,148 2,900 -13% -4% -8% 1H 2012 Liberalized business Regulated business 1H 2013 Generation mix (production/energy purchases) Lower energy sales Law 15/2012 and RDL 20/2012 in non-mainland generat
Slide 16: Mainland output and energy management optimization
spain&portugal 1H 2013 Mainland output and energy management optimization Decrease in mainland output(1) 1H 2013 energy management Gross electricity Gross electricity sources sales GWh 32,761 53 TWh 53 TWh 2,164 26,020 LRT Auctions(2) 12 12 LRT(2) 8,261 587 CCGT 2 -21% Energy purchases Pool sales 5,
Slide 17: Latin America 1H 2013
latin america 1H 2013
Slide 18: Highlights in 1H 2013
latin america 1H 2013 Highlights in 1H 2013 2.4%1 growth in LatAm Dx demand: Brazil and Chile outperform; flat trend in Argentina 4.9% drop in Gx output: lower hydro generation in all countries exceeds the increase in thermal output Argentina: important (but incomplete) regulatory improvements in Dx
Slide 19: EBITDA positively affected by non-operative and operative drivers
latin america 1H 2013 EBITDA positively affected by non-operative and operative drivers that more than offset FX and fixed costs negative performance €M 1H 2013 1H 2012 Change Revenues 5,135 5,251 -2% Gross margin 2,475 2,188 +13% EBITDA 1,750 1,507 +16% EBIT 1,387 1,135 +22% Net finance expenses(1)
Slide 20: Chile: better results due to new installed capacity
latin america 1H 2013 Chile: better results due to new installed capacity Generation output Distribution sales (1) -3% Poor hydro conditions partially GWh compensated by higher thermal +4% output (Bocamina II) Demand increase supported by construction activity and by residential & commercial seg
Slide 21: Brazil: EBITDA impacted by drought
latin america 1H 2013 Brazil: EBITDA impacted by drought Generation output Distribution sales (1) +5% GWh Worse hydro conditions due to drought partially offset by higher thermal dispatch from Fortaleza -7% Higher Dx volumes due to weather conditions 1H 2012 1H 2013 1H 2012 1H 2013 Gx EBITDA Dx
Slide 22: Colombia: well-balanced asset portfolio
latin america 1H 2013 Colombia: well-balanced asset portfolio Generation output Distribution sales (1) -0.5% Output in line with 1H 2012. GWh Decrease in hydro generation +1% almost entirely compensated by thermal dispatch Slight demand increase, lower than in the country 1H 2012 1H 2013 1H 2012
Slide 23: Peru: slight decrease in results
latin america 1H 2013 Peru: slight decrease in results Generation output Distribution sales (1) -10% GWh Output decrease due to lower +2% thermal dispatch and planned and not planned outages Demand affected by slowdown in manufacture activity in Lima area 1H 2012 1H 2013 1H 2012 1H 2013 Gx EBITD
Slide 24: Argentina: EBITDA impacted by MMC recognition in Dx
latin america 1H 2013 Argentina: EBITDA impacted by MMC recognition in Dx Generation output Distribution sales (1) -8% -1% GWh Generation decrease due to outages in thermal plants and lower hydro dispatch due to poor hydrology Flat demand 1H 2012 1H 2013 1H 2012 1H 2013 Gx EBITDA Dx EBITDA €M
Slide 25: Final remarks 1H 2013
final remarks 1H 2013
Slide 26: Final remarks
final remarks 1H 2013 Final remarks Difficult regulatory environment Present formulation of recent regulatory measures negatively impacts Spain both our regulated and liberalized business leading to a remuneration of regulated activities below a reasonable return level Further investment and cost re
Slide 27: Appendices 1H 2013
appendices 1H 2013
Slide 28: Installed capacity and output
appendices 1H 2013 Installed capacity and output(1) Latin MW at 30/06/13 Spain& Portugal America Total Total 23,300 16,161 39,277 Hydro 4,755 8,670 13,425 Nuclear 3,686 - 3,686 Installed Coal 5,804 872 6,676 capacity Natural gas 5,798 3,958 9,757 Oil-gas 3,256 2,574 5,829 CHP/Renewables na 87 87 Lat
Slide 29: Latin America: generation and distribution figures
appendices 1H 2013 Latin America: generation and distribution figures Generation Output Distribution Sales (1) GWh GWh 30,386 +2.4% 28,905 29,372 30,087 7,390 7,116 -1% -4.9% 6,825 -8% Argentina 7,152 2,371 2,216 -7% Brazil 8,841 9,266 +5% 9,554 9,305 -3% Chile 6,173 6,408 +4% 6,396 Colombia 6,366 -
Slide 30: Latin America: EBITDA break down by country and business nature
appendices 1H 2013 Latin America: Ebitda break down by country and business nature Ebitda Generation(1) Ebitda Distribution €M €M 994 741 699 +6% Argentina +27% 31 +35% 781 23 237 110 -9% 121 Brazil 167 +9% 355 153 314 -12% Chile 134 138 +3% 278 314 +13% Colombia 245 233 -5% 124 119 -4% Peru 74 72 -
Slide 31: Endesa (excl. Enersis): financial debt maturity calendar
appendices 1H 2013 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 30 June 2013: €3,929 M(1) Bonds Bank debt and others ECPs and domestic commercial paper (2) 1,639 Endesa's liquidity excl. Enersis 1,164 covers 40 1,271 600 months of 943 291 235 de
Slide 32: Enersis: financial debt maturity calendar
appendices 1H 2013 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 30 June 2013: €5,054 M(1) Bonds Bank debt and others 2,396 353 Enersis has sufficient liquidity to 937 cover 732 2,043 472 517 25 months 390 297 109 101 of debt 435 547 416 maturities 363 Jul-Dec
Slide 33: Financial policy and net debt structure
appendices 1H 2013 Financial policy and net debt structure Structure of Endesa's net debt ex-Enersis Enersis net debt structure €M €M 3,569 3,569 3,419 3,419 Floating 31% Other 47% Floating 77% Euro 100% Fixed 69% US$ 53% Fixed 23% By interest rate By currency By interest rate By currency Average co
Slide 34: Well on track on forward sales strategy
appendices 1H 2013 Well on track on forward sales strategy Spain & Portugal Latin America (% estimated mainland output hedged) (% estimated output hedged) 100% Contracting level in Latin America that 75-80% 70-75% optimizes margin and risk exposure 40% 2013 2014 2013 2014 35% of the generation sold
Slide 35: Disclaimer
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
Slide 36: Consolidated results 1H 2013
consolidated results 1H 2013 36