Endesa S.a. · BME:ELE
Endesa — Endesa Sa Madrid — Q1 2023 Earnings Presentation
32 slides from Endesa's earnings presentation, May 9, 2023
Slide 1: First Quarter Consolidated results
First Quarter Consolidated results May 9th, 2023
Slide 2: 1Q 2023 Financial results – José Bogas, CEO
1Q 2023 Financial results José Bogas CEO
Slide 3: Key highlights of the period
Key highlights of the period Power prices context eases thanks to lower gas references Sound results still Renewable production increases allowing for sourcing benefitted from cost reduction 2022 inertial drivers Results improvement driven by our integrated business model resiliency AGM approved 202
Slide 4: Market context
Market context 1Q marked by relevant downward power prices trend and continuous demand contraction Gas TTF spot prices (€/MWh) CO2 spot prices (€/t) Average Iberian power pool prices (€/MWh)(1) -58% 229 96 1Q 2022 1Q 2023 PVB (€/MWh) 98 52 -47% Mainland power demand in Spain (TWh)(2) Endesa’s mainla
Slide 5: Mainland installed capacity and production
Mainland installed capacity and production Installed capacity(1) (GW) Production(2) (TWh) +5% ▪ Towards a greener generation mix: 83% -8% -4% 17.8 17% CO2 free output 16.9 0.9 0.0 8.4 9.3 +10% 13 ▪ +32% Renewables production: hydro, 53% +4% vs. 1Q 2022 wind & solar 3.3 3.3 FLAT 30% 5.2 5.2 +32% 1Q 2
Slide 6: Supply: Liberalized power sales and customers
Supply: Liberalized power sales and customers Liberalized power customers(1) Liberalized power sales(2) (TWh) (mn) +7% +3% ▪ Liberalized customer base 6.8 19.0 19.5 6.4 consolidation 5.5 6.2 ▪ +13% B2C sales, mainly as a 6.0 6.5 consequence of customer 13.5 13.3 increase 0.4 0.3 ▪ +51% charging poin
Slide 7: Sound performance of Iberian free power margin
Sound performance of Iberian free power margin Output / Sales (TWh) Free power unitary margin (1) (€/MWh) Hedged output (2) CO2-free output / Fixed price sales 77% 22 +2x 3 1 65 100% 16 5 87% 3 -16% 19 TWh (+2%) Free sales 2 30 14 11 +9% Output Sales 1Q 2022 1Q 2023 2023 2024 SCVP (regulated) Non ma
Slide 8: Gas margin improvement driven by market context
Gas margin improvement driven by market context Total volumes (1) (TWh) Gas unitary margin (2) (€/MWh) Volumes hedged (3) (%) FLAT +6x 27 27 6 87% CCGT(4) 7 5 Retail 22 35% demand 21 (4) 1 1Q 2022 1Q 2023 1Q 2022 1Q 2023 2023 2024 Customers (mn) 1.7 1.8 +6% Liberalized (mn) 1.5 1.4 -7% (1) Rounded f
Slide 9: Networks: operational parameters
Networks: operational parameters Distributed energy (TWh) TIEPI (1) (min.) -12% FLAT 14.7 33 12.9 33 ▪ Continued improvement in service quality 1Q 2022 1Q 2023 ▪ Record in high fraud levels drove a slight losses increase Losses (%) 1Q 2022 1Q 2023 +0.1 pp ▪ Networks investments key 8.1 8.2 enabler f
Slide 10: 1Q 2023 Financial results – Marco Palermo, CFO
1Q 2023 Financial results Marco Palermo CFO
Slide 11: Key financial highlights
Key financial highlights €mn EBITDA Net Ordinary Income(1) Adjusted FFO(2) +60% +76% n.a. 208 305 168 1,462 594 -97 914 338 -476 1Q 2022 1Q 2023 1Q 2022 1Q 2023 -308 1Q 2022 1Q 2023 Regulatory working capital variation 1Q 2023 capex: 409 €mn (+2%) Reported FFO -476 -97 +80% 11 1Q 2023 Results - Madr
Slide 12: +60% EBITDA supported by our integrated business
+60% EBITDA supported by our integrated business €mn EBITDA by business (1) +548 €mn +60% EBITDA growth driven by good 1,462 DYoY performance of Conventional Gx and 284 Renewables business… 451 +4% 75 -204 914 374 …as well as Supply margin 19 432 852 +78% normalization Gx+Sx: +733 €mn (+151%) 478 21
Slide 13: Generation&Supply EBITDA: strong growth to normalize along the year
Generation&Supply(1) EBITDA: strong growth to normalize along the year +733 €mn +151% Free power margin +672 €mn: -51 -12 131 • Higher thermal margins -7 • Supply normalization • Positive short position management 672 1,218 Gas business improvement +131 €mn 485 Gross margin +745 €mn Others: -51 €mn,
Slide 14: Stable Networks EBITDA
Stable Networks EBITDA €mn +19 €mn +4% 35 451 432 -16 Margin increase mainly from the absence of last year negative resettlements 16 €mn fixed cost increase EBITDA 1Q 2022 Gross margin Fixed costs & others EBITDA 1Q 2023 1Q 2023 Results - Madrid, 9 May 2023 14
Slide 15: +76% Net Ordinary Income
+76% Net Ordinary Income €mn +76% -47 -103 Amortization increase due to -160 larger capex deployed 548 18 Financial results impacted by 594 higher average gross debt at higher cost and provisions update 338 Effective tax rate ~31% affected by 1Q 2022 EBITDA D&A Financial Taxes Minorities 1Q 2023 ext
Slide 16: FFO affected by regulatory working capital and cash flow seasonality
FFO affected by regulatory working increase capital and cash flow seasonality €mn Working capital & others -1.4 €bn(1) -187 €mn Non- -85 mainland -305 1,462 208 305 Reg. WK 1 -97 -1,106 -64 Reported Provisions paid Regulatory (2) Rest working Income Taxes Net Financial Adjusted FFO EBITDA working ca
Slide 17: Healthy leverage ratio and solid credit metrics
Healthy leverage ratio and solid credit metrics €bn (1) (2) Net debt evolution Gross debt +6% -9% 11.6 18.5 10.9 0.6 16.9(2) 0.1 Regulatory 2.3 2.6 working capital 6.7 4.2 -37% 0.9 1.0 8.5 9.0 10.9 11.6 2022 FFO Cash Capex (3) 1Q 2023 2022 1Q 2023 Net debt Cash&Others Cash collateral Net Debt / 2.0x
Slide 18: Ensured financial position for a revised context
Ensured financial position for a revised context Debt maturity by year(1) (€bn) 1Q23: New long term financial 6.0 transactions executed for 1,250 €mn 5.4 0.4 4.5 5.4 5.6 AGM: 3,000 €mn long term 4.1 1.1 facilities with Enel approved 1.1 0.4 2023 2024 2025 2026+ Debt ex ECP ECP’s Underway: bank long
Slide 19: 1Q 2023 Closing remarks – José Bogas, CEO
1Q 2023 Closing remarks José Bogas CEO
Slide 20: Closing Remarks
Closing Remarks Sound results backed on our integrated business model… … with thermal and gas business expected to normalize along the year FY 2023 guidance confirmed ~100% 2023 renewables target already in execution Remarkable 9% dividend yield 1Q 2023 Results - Madrid, 9 May 2023 2020
Slide 21: 1Q 2023 Annexes
1Q 2023 Annexes encesa
Slide 22: P&L 1Q 2023 vs. 1Q 2022
P&L 1Q 2023 vs. 1Q 2022 €mn 1Q 2023 1Q 2022 % Var. Income 7,504 7,596 -1% Procurements and services -4,738 -6,015 -21% Income and expenses from energy derivatives -741 -125 +493% Gross margin 2,025 1,456 +39% Fixed operating costs and other results -563 -542 +4% EBITDA 1,462 914 +60% D&A -472 -425 +
Slide 23: Endesa: 1Q 2023 P&L
Endesa: 1Q 2023 P&L €mn Gx+Sx (1) Conventional Gx Renewables Retail Endesa X Dx Structure Adjustments TOTAL adjustments Income 3,446 323 6,149 95 -3,094 633 109 -157 7,504 Procurements and services -1,728 -31 -5,802 -54 3,086 -40 -209 40 -4,738 Income and expenses from energy derivatives -661 2 -82
Slide 24: Endesa: 1Q 2022 P&L
Endesa: 1Q 2022 P&L €mn Gx+Sx Conventional Gx Renewables Retail Endesa X (1) Dx Structure Adjustments TOTAL adjustments Income 2,689 284 6,400 89 -2,418 593 96 -137 7,596 Procurements and services -1,598 -53 -6,719 -41 2,396 -35 0 35 -6,015 Income and expenses from energy derivatives -407 -14 296 0
Slide 25: Fixed costs evolution
Fixed costs evolution €mn +3% 564 545 255 +5% 243 355 368 +4% -53 -59 1Q 2022 1Q 2023 Personnel Costs O&M Costs Capitalized costs 1Q 2023 Results - Madrid, 9 May 2023 25
Slide 26: Installed capacity and output
Installed capacity and output Total net installed capacity (MW) Total gross output(1) (GWh) 1Q 2023 2022 Var. (%) 1Q 2023 1Q 2022 Var. (%) Mainland 17,781 17,781 +0% 13,015 12,533 +4% Renewables (2) 9,293 9,293 +0% 3,940 2,980 32% Hydro 4,746 4,746 +0% 1,506 1,137 32% Wind 2,882 2,882 +0% 1,944 1,55
Slide 27: Around 81 GW pipeline supporting further renewable acceleration
Around 81 GW pipeline supporting further renewable acceleration Renewables pipeline(1) (GW) Mature & In execution pipeline by COD(3) (GW) ~15% 7 ~2x 2023-25 ~59% 16 GW targets 62 9 81 ~20% ~6% 2023-25 >2025 18 1.5 ~30% of 2023-25 target additions already in (2) Gross Pipeline Early stage Mature In e
Slide 28: Spanish power market
Spanish power market 1Q 2023 Customers (mn) Energy sold (TWh) Endesa Endesa market share(1) market share(2) 19.8 29.9 55.4 61.1 Residential Business 18.7 30% 24.1 18.9 28% 28.9 10.1 36.7 30% 0.9 37.0 10.0 22% 5.7 0.9 5.4 0.0 0.3 Regulated 44% Free 27% Total Regulated 46% Free 30% Total 28 (1) Custom
Slide 29: Glossary of terms (I/II)
Glossary of terms (I/II) Reference note of Consolidated Item Calculation Management Report Cost of gross financial debt / gross average financial debt: (115 €mn x (12 months / 3 months)) / 16,795 Average cost of debt (%) 7 €mn = 2.8% (Principal x number of days of term) / (Principal in force at the
Slide 30: Glossary of terms (II/II)
Glossary of terms (II/II) Reference note of Consolidated Item Calculation Management Report Gross tangible (318 €mn) and intangible (92 €mn) Capex - rights of use (1 €mn) + Others (0 €mn) = 409 Gross Capex (€mn) n/a €mn Long and short term financial debt (10,924 €mn + 5,957 €mn) - Cash and cash equi
Slide 31: 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 32: IR Team Contact us
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 32