Slide 1: Endesa 9M 2011 results
08 | 11 | 2011 endesa 9M 2011 results
Slide 2: Market context in 9M 2011
consolidated results 9M 2011 Market context in 9M 2011 Demand Spain: +3.9%(2) Latin demand 8.4% 1.4% America: solid slowing down 6.3% 5.4% growth in the affected by Services Residential region with residential and 3.3% (1) Industry outstanding small & -0.1% 1.4% performance in medium Spain Chile, Pe
Slide 3: Operating results affected by non-recurrent effects
consolidated results 9M 2011 Operating results affected by non-recurrent effects €M 9M 2011 9M 2010 Change Like-for-like Revenues 24,604 22,972 +7% Gross margin 8,157 8,400 -3% EBITDA 5,449 5,810 -6% -1% Spain&Portugal&Others 3,124 3,337 -6% 0%(1) Endesa Latin America 2,325 2,473 -6% -1%(2) EBIT 3,8
Slide 4: Forward sales strategy
consolidated results 9M 2011 Forward sales strategy Spain & Portugal Latin America (% estimated mainland output hedged) (% estimated output hedged) 100% Contracting level in Latin America that 75-80% optimizes margin and risk exposure 70-75% 70-75% Oct-Dec 2011 2012 Oct-Dec 2011 2012 36% of the gene
Slide 5: Spain: tariff deficit securitization process advancing
consolidated results 9M 2011 Spain: tariff deficit securitization process advancing despite challenging market conditions Balance of rights committed to FADE 5th securitization tranche for securitization €bn 13.7(1) Issue date: September 26th 2011 4.7(2) Amount: €1.5 bn 7.1(1) Coupon: 4.4% (+9
Slide 6: Regulation update in Spain
consolidated results 9M 2011 Regulation update in Spain • Freeze of last resort tariff: -12% TPA component in order to compensate for the increase of the energy component 4Q 4QTariff Tariff • CNE report on 4Q tariff review proposal: “…improper use of TPA Review Review component…” • Ministerial order
Slide 7: Regulation update in Latam
consolidated results 9M 2011 Regulation update in Latam • Brazil: 3rd cycle distribution tariff review (Coelce): • Revised values were published by ANEEL: • WACC: 7.5% (real post tax) and 11.4% (real pre tax) • Gross RAB: US$1.8 bn (US$ 1.1bn net) • O&M: US$250 M per year • Factor X: 1.6% per year •
Slide 8: On track to achieve efficiency and synergy targets for FY 2011
consolidated results 9M 2011 On track to achieve efficiency and synergy targets for FY 2011 €M Endesa Synergy Plan Endesa Zenith Plan 840 137 100% 100% Distribution Distribution 33% 52% Generation & energy Achieved in Achieved in 739 management 9M 2011 127 9M 2011 38% Generation & energy management
Slide 9: A sound financial position
consolidated results 9M 2011 A sound financial position Net debt evolution in 9M 2011 (€M) 15,336 3,005 2,045 427 13,149 1.8x Enersis 4,188 171 1,836 4,205 1,625 1.3x Pending 6,817 regulatory assets Spain& Tariff Def. -€1,592 M Portugal 11,148 Securitization: €3,637 M 8,944 & others Debt net of 2.3x
Slide 10: Spain & Portugal & Others 9M 2011
spain&portugal&others 9M 2011
Slide 11: Highlights in 9M 2011
spain&portugal&others 9M 2011 Highlights in 9M 2011 Economy slowdown resulting in flat demand (1) 16% increase in output(2): lower nuclear and hydro resulted in higher thermal gap Margin normalization continues in liberalized business Increasing contribution from regulated activities Fixed costs red
Slide 12: Resilient results despite disposals & margin normalization
spain&portugal&others 9M 2011 Resilient results despite disposals & margin normalization 9M 2011 9M 2010 Change Like-for-like (3) €M Revenues 17,074 15,739 +8% Gross margin 4,827 5,040 -4% EBITDA 3,124 3,337 -6% 0% EBIT 1,993 2,294 -13% Net finance expenses(1) 318 468 -32% Net attributable income 1,
Slide 13: Gross margin impacted by energy costs & perimeter
spain&portugal&others 9M 2011 Gross margin impacted by energy costs & perimeter €M 5,040 +10% 4,817 4,827 €223 M -10% +0% 9M 2010 Perimeter 9M 2010 Liberalized business Regulated business 9M 2011 ex-perimeter Perimeter Higher production & Distribution (renewables, gas, sales to final customers Non-m
Slide 14: Lower liberalized margins despite higher generation volumes
spain&portugal&others 9M 2011 Lower liberalized margins despite higher generation volumes Market margins evolution: wholesale price Endesa mainland output(1) vs. price to final customers 58 €/MWh 60 56 €/MWh GWh 55 €/MWh 56 €/MWh +16% 45,471 3Q 2011 50 55 €/MWh 4,696 CCGT 39,156 Fuel: 0 1H 2011 2H 2
Slide 15: Margin optimization thanks to competitive generation mix and leadership in supply
spain&portugal&others 9M 2011 Margin optimization thanks to competitive generation mix and leadership in supply activity Gross electricity sources Gross electricity sales 95 TWh 95 TWh 9 Pool sales Energy purchases 34 Unit purchase 22 LRT (2) cost €50/MWh LRT Auctions (2) 15 51% 56 TWh Mainland ordi
Slide 16: Latin America 9M 2011
latin america 9M 2011
Slide 17: Highlights in 9M 2011
endesa latin america 9M 2011 Highlights in 9M 2011 Generation volumes affected by drought in Chile compensated by Peru and Argentina Chile: still impacted from drought Distribution sales: +3.8% with outstanding performance in Peru (+7.6%) and Chile (+4.9%) Argentina: higher costs due to inflation wi
Slide 18: Operating results affected by non recurrent items and drought
endesa latin america 9M 2011 Operating results affected by non recurrent items and drought €M 9M 2011 9M 2010 Change Like-for-like Revenues 7,530 7,233 +4% Gross margin 3,330 3,360 -1% EBITDA 2,325 2,473 -6% -1%(1) EBIT 1,850 1,902 -3% Net finance expenses(2) 258 356 -28% Net income 1,153 1,168 -1%
Slide 19: Chile: generation margins affected by drought
endesa latin america 9M 2011 Chile: generation margins affected by drought Generation output Distribution sales GWh -6% Lower generation due to +5% drought (-14% hydro), partially compensated by 15,431 higher thermal generation 14,499 10,223 9,749 Growth in distribution sales after 2010 earthqua
Slide 20: Brazil: positive results despite unfavourable conditions
endesa latin america 9M 2011 Brazil: positive results despite unfavourable conditions GWh Generation output Distribution sales Lower generation (-34%) due to +2% lower hydro in Cachoeira and lower dispatch in Fortaleza 13,864 14,192 Good performance in Ampla -34% (+4%) compensates Coelce (+0%) 3
Slide 21: Colombia: net worth tax offsets higher margins
endesa latin america 9M 2011 Colombia: net worth tax offsets higher margins GWh Generation output Distribution sales +1% +3% Increase in generation due to wet hydro conditions 9,277 9,568 8,519 8,616 Increase in distribution sales 9M 2010 9M 2011 9M 2010 9M 2011 Gx EBITDA Dx EBITDA Gx: €M -8%
Slide 22: Peru: higher activity and lower fixed costs
endesa latin america 9M 2011 Peru: higher activity and lower fixed costs Generation output Distribution sales GWh +9% Higher generation due to better hydro conditions, grid +8% restrictions in the north and higher availability 6,703 7,307 4,550 4,895 Strong economic growth led to 8% increase in
Slide 23: Argentina: solid operations but pending tariff review
endesa latin america 9M 2011 Argentina: solid operations but pending tariff review Generation output Distribution sales GWh +5% +3% Strong output increase (decrease in hydro offset by thermal production) 11.956 12.518 12.623 13.064 Slight increase in demand due to mild temperatures 9M 2010 9M 20
Slide 24: Conclusions 9M 2011
conclusions 9M 2011
Slide 25: Final remarks
consolidated results 9M 2011 Final remarks Deficit securitization process advances despite market conditions Need to continue working towards a sustainable regulatory framework in Spain Resilient results in Iberia despite loss in perimeter and liberalized margins normalization Latin America strong 3
Slide 26: Appendices 9M 2011
appendices 9M 2011
Slide 27: Installed capacity and output
appendices 9M 2011 Installed capacity and output(1) Spain& Endesa Latin MW at 30/09/11 Portugal&Others America Total Total 24,267 15,832 40,099 Hydro 4,716 8,666 13,382 Nuclear 3,681 - 3,681 Installed Coal 5,804 522 6,326 capacity Natural gas 4,857 3,966 8,823 Oil-gas 5,209 2,592 7,801 CHP/Renewable
Slide 28: Latin America: generation and distribution figures
appendices 9M 2011 Latin America: generation and distribution figures Generation Output Distribution Sales GWh +3.8% -1.9% 51,942 50,063 46,220 45,335 GWh 13.064 Argentina 12.623 11.956 12.518 +3% +5% 3.611 2.395 Brazil 14.192 -34% 13.864 +2% 15.431 14.499 Chile -6% 10.223 9.749 +5% Colombia 8.519 8
Slide 29: Gx & Dx EBITDA affected by Chilean drought, Colombian net-worth tax and Fx
appendices 9M 2011 Gx & Dx EBITDA affected by Chilean drought, Colombian net-worth tax and Fx Ebitda Generation Ebitda Distribution €M -5% stripping out net worth +0% stripping out net worth tax in Colombia tax in Colombia 1,352 -9% -4% 1,226 1,089 95 1,048 165 99 +4% Argentina 37 168 +2% Brazil 513
Slide 30: Endesa (excl. Enersis): financial debt maturity calendar
appendices 9M 2011 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 30 September 2011: €9,217 M(1) Bonds (2) Bank debt and others ECPs and domestic commercial paper (3) 4,664 Endesa's Endesa's liquidity liquidityexcl. excl. 3,389 Enersis Enersis 1,6
Slide 31: Enersis: financial debt maturity calendar
appendices 9M 2011 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 30 September 2011: €5,491 M(1) Bonds Bank debt and others 2,743 290 Enersis Enersishas has sufficient sufficient liquidity liquidityto to cover cover 933 2,453 24 months 762 752 24 months 301 283
Slide 32: Financial policy and debt structure
appendices 9M 2011 Financial policy and debt structure Structure of Endesa's debt ex-Enersis Enersis debt structure €M €M 8,944 8,944 4,205 4,205 US$ 1% Floating 42% Floating 40% Other 47% Hedged 3% Euro 99% Chilean Peso 17%(1) Fixed 55% Fixed 60% US$ 36% By interest rate By currency By interest rat
Slide 33: Endesa has major direct holdings in companies other than Enersis in Latin America
appendices 9M 2011 Endesa has major direct holdings in companies other than Enersis in Latin America Proportionate Proportionate €M % direct 9M 2011 30.09.2011 stake EBITDA Net debt 60.6% Codensa 26.7% 67 90 Emgesa 21.6% 65 151 Direct holdings Endesa Brasil 28.5% 215 178 Edesur 6.2% -1 1 60% DockSud
Slide 34: 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 35: Consolidated results 9M 2011
consolidated results 9M 2011 35