Endesa S.a. · BME:ELE
Endesa — Q1 2015 Earnings Presentation
25 slides from Endesa's earnings presentation, May 7, 2015
Slide 1: Endesa 1Q 2015 Results
Endesa 1Q 2015 Results Madrid, 7 May 2015
Slide 2: Agenda
Agenda 1. Market context and regulatory update 2. Financial results and net debt analysis 3. Business analysis 4. Final remarks 2 1Q 2015 Results Madrid, 7 May 2015
Slide 3: Market context and regulatory update
1. Market context and regulatory update 2. Financial results and net debt analysis 3. Business analysis 4. Final remarks 3 1Q 2015 Results Madrid, 7 May 2015
Slide 4: Market context in 1Q2015
Market context in 1Q2015 Demand Electricity wholesale prices Weighted average pool prices Spain(3) (€/MWh) Spain(1) Endesa distribution area(2) (Not adjusted) +2.9% Industry +1.4% 47,4 ~50 +2.3% +2.3% +94% Services +1.5% +1.0% Residential +4.7% 24,4 1Q 2014 1Q 2015 Bal 2015 Adjusted for weather and
Slide 5: Regulatory update (I)
Regulatory update (I) Latest regulatory news R E Domestic Draft Ministerial Order introduces a capacity payment for generation plants using domestic coal Coal draft consisting of a fix remuneration (72,000 €/MW), subject to: G Ministerial 1) IED investments U Order 2) coal supply contract from
Slide 6: Regulatory update (II)
Regulatory update (II) CNMC settlements €0.5 bn of provisional imbalance of regulated cost/revenues 14th CNMC Includes 2014 fuel costs final reference for non-mainland systems settlement for Coverage ratio: 97.05% Year 2014 Endesa owns 18.19% of regulatory working capital receivables Final
Slide 7: Financial results and net debt analysis
1. Market context and regulatory update 2. Financial results and net debt analysis 3. Business analysis 4. Final remarks 7 1Q 2015 Results Madrid, 7 May 2015
Slide 8: Financial results
Financial results 1Q 2015 1Q 2014(1,2) Change €M re-stated Revenues 5,451 5,455 0% Gross margin 1,460 1,402 +4% EBITDA 952 909 +5% EBIT(3) 628 516 +22% Net finance expenses(4) 77 32 +141% Share of profit from associates(5) 24 -33 n/a Net attributable income 435 418 +4% From continued operations 435
Slide 9: Net debt analysis
Net debt analysis Net debt evolution Net debt (1) / 1.8x 1.6x EBITDA ratio €M 5.420 907 Regulatory 402 21 5.137 working capital 1,173 678 Regulatory 242 working capital • Year 2014: +€21 M cashed in from settlements 10- 5.136 12/2014 (interests from 2013 tariff deficit) 4.755 4.513 4.513 Deuda Total
Slide 10: Business analysis
1. Market context and regulatory update 2. Financial results and net debt analysis 3. Business analysis 4. Final remarks 10 1Q 2015 Results Madrid, 7 May 2015
Slide 11: Highlights
Highlights Positive EBITDA and EBIT evolution (+5% and +22%) Regulated business positively impacted by the recognition in non-mainland generation of taxes from Law 15/2012 22% output increase due to higher thermal output (+113%) (1) Liberalized business margin normalization compensated by demand rec
Slide 12: 1Q 2015 EBITDA breakdown
1Q 2015 EBITDA breakdown 1Q 2014 1Q 2015 % % €M Change (%) €M Generation & Generation & 417 +8% 452 Supply Supply 46% 47% Non-mainland 7% 63 +19% 75 Non-mainland generation 8% generation 47% 429 -1% 425 45% Distribution Distribution TOTAL(1) 909 +5% 952 TOTAL(1) 12 1Q 2015 Results Madrid, 7 May 2015
Slide 13: Regulated business
Regulated business Gross margin evolution of non-mainland Gx and Dx +5% 19 756 718 19 €M 149 130 Non-mainland generation 718,1 737,4 588 607 Distribution MC Regulado 1Q 2014 Delta Non Mainland Delta Dx MC Regulado 1Q 2015 1Q 2014 Non-mainland Gx Distribution 1Q 2015 Gross margin Gross margin Lates
Slide 14: Liberalized business
Liberalized business Gross margin evolution +3% €M 704 684 20 1Q 2014 1Q 2015 Gross margin(1) Gross margin(1) Higher volumes and Higher fuel costs (higher thermal underlying selling price gap) CO2 swap transaction Higher energy purchase cost Gas Business Higher Law 15/2012 taxes • Other
Slide 15: Fixed costs evolution
Fixed costs evolution +3% €M 0% 493 31 (1) 524 526 18 (2) 508 -2.5% Personnel 220 242 236 218 Costs -397 526 Headcount (3) 532 O&M Costs 306 306 314 314 Capitalized costs -33 -24 -24 -24 1Q 20141Q2014 Repor t ed Adj 1Q 2014 1Q2014 Adjus t ed 1Q 2015 1Q2015 Repor t ed Adj 1Q 2015 1Q2015 Adjus t ed Re
Slide 16: Liberalized business: energy management
Liberalized business Energy management Mainland output 1Q 2015 energy management Electricity sources Electricity sales GWh 15,090 26 TWh 26 TWh +22% 772 CCGT 12,354 SCVP purchases(1) 6 6 SCVP sales(1) 3.529 279 Imported coal Energy purchases 5 1.985 1.330 Unit purchase cost 377 National coal €52/MWh
Slide 17: Final remarks
1. Market context and regulatory update 2. Financial results and net debt analysis 3. Business analysis 4. Final remarks 17 1Q 2015 Results Madrid, 7 May 2015
Slide 18: Final remarks
Final remarks 1Q 2015 Results 18 Madrid, 7 May 2015
Slide 19: Appendix
Appendix Endesa 1Q 2015 Results 1Q 2015 Results Madrid, 7 May 2015
Slide 20: Installed capacity and output
Installed capacity and output(1) GW at 31/03/15 GWh 1Q 2015 (and chg. vs. 31/03/14) Installed capacity(2) (and chg. vs. 1Q 2014) Output(3) Total 21.7 +0% 18,019 +18.3% Hydro 4.7 +1% 2,356 -17% Nuclear 3.3 0% 7,103 +3% Coal 5.3 0% 5,385 +89% Natural gas 5.4 0% 1,626 +39% Oil-gas 2.9 0% 1,548 +4% (1)
Slide 21: Endesa: financial debt maturity calendar
Endesa: financial debt maturity calendar Gross balance of maturities outstanding at 31 March 2015: €5,937 M(1) Bonds Bank debt and others ECPs and domestic commercial paper (2) 5,101 Endesa's liquidity covers 50 months of debt 368 256 maturities 162 80 117 168 161 81 46 49 34 38 15 36 15 32 Apr’ 15-
Slide 22: Gross debt structure
Gross debt structure as of March 31st 2015 Structure of Endesa's gross debt €M 5,953 5,953 Floating 15% Euro 100% Fixed 85% US$ 40% By interest rate By currency Average cost of debt 3.1% 1Q 2015 Results Data as of 31 March 2015 22 Madrid, 7 May 2015
Slide 23: This document is the property of ENDESA
“This document is the property of ENDESA and therefore must not be disseminated or published without ENDESA's prior written consent. The content of this document is provided for information purposes only and therefore has no contractual substance and should not be used as part of or construed as a l
Slide 24: 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 25: Endesa Mobile
Endesa Mobile Get full information of the company on Endesa Mobile, the Endesa App for iPhone, iPad and Android devices. Download from Download from App Store Google Play 1Q 2015 Results 25 Madrid, 7 May 2015