Slide 1: Endesa 9M 2014 Results
Endesa 9M 2014 Results Madrid, 31 October 2014
Slide 2: 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 3: Agenda
Agenda 1. Completion of Endesa’s corporate re-organization process 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 9M 2014 Results 3 Madrid, 31 October 2014
Slide 4: Completion of Endesa's corporate re-organization process
1. Completion of Endesa’s corporate re-organization process 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 9M 2014 Results 4 Madrid, 31 October 2014
Slide 5: Completion of Endesa's corporate re-organization process
Completion of Endesa’s corporate re-organization process Structure until 23rd October From 23rd October 2014 - New 2014 structure Enel Enel 100% 100% 100% Enel Energy Enel Energy Endesa Europe Europe Latam 92.06% 92.06% 20.30% Endesa 40.32% Endesa Enersis 100% Endesa Latam 20.30% New perimeter 40.32
Slide 6: Completion of Endesa's corporate re-organization process
Completion of Endesa’s corporate re-organization process Main decisions approved at Decisions taken by Endesa’s BoD Endesa’s EGM held on 21st held on 7th October October • Payment of an interim extraordinary • Sale of 20.3% Enersis’ stake and dividend amounting to €6,353 M to 100% Endesa Latinoameri
Slide 7: Market context and regulatory update
1. Completion of Endesa’s corporate re-organization process 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 9M 2014 Results 7 Madrid, 31 October 2014
Slide 8: Market context in 9M 2014
Market context in 9M 2014 Demand Electricity wholesale prices Weighted average pool prices Spain(3) (€/MWh) Spain(1) Endesa distribution area(2) (Not adjusted) Industry +2.4% 41.0 +0.3% +0.1% 39.1 -1.4% 1Q 14 24.3 Services -5% Residential -3.6% -0.9% 2Q 14 41.1 -1.0% 3Q 14 53.2 Adjusted for weather
Slide 9: Regulatory update (I)
Regulatory update (I) Pending chapters of the electricity regulatory reform Topic Latest news Open questions / next steps Government to approve physical units Distribution CNMC released proposal with and unitary investment and O&M R (explicit RAB unitary investment and O&M standard values E mech
Slide 10: Regulatory update (II)
Regulatory update (II) Tariff deficit related issues Draft released in August pointing to a reasonable mechanism Draft RD on 2013 Access tariffs will recognize 8Y Gvment. Bonds + spread of interest rate tariff deficit To be recovered in 15 years time securitization Companies to carry out the
Slide 11: Financial results and net debt analysis
1. Completion of Endesa’s corporate re-organization process 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 9M 2014 Results 11 Madrid, 31 October 2014
Slide 12: Financial results
Financial results 9M 2014(1) 9M 2013(1) Change Like-for-like(2) €M Revenues 15,542 16,234 -4% Gross margin 3,965 4,252 -7% EBITDA 2,484 2,654 -6% 0% EBIT(3) 1,317 1,427 -8% Net finance expenses 114 92 +24% Share of profit from associates(4) -65 39 -267% Net income 1,742 2,319 -25% From continued ope
Slide 13: Pro-forma Income Statement for 9M 2014
Pro-forma Income Statement for 9M 2014 Impacts Reported 9M 2014 €m Spain & Portugal Pro Forma LatAm Extr. Change 9M 2014 Endesa restructuring dividend Revenues 15,542 15,542 - EBITDA 2,484 2,486 +2 D&A (1,167) (1,167) - EBIT 1,317 1,319 +2 Net financial (114) (228) (114) expenses Net incom
Slide 14: Net debt analysis (I)
Net debt analysis (I) Net debt adjusted by reorganization process 6,353 7,646 2013 TD (€1.4 bn) 2,502 €M 4,725 3,432 Debt net of 5,144 regulatory assets 1,293 Total net Discontinued Spain and Extraordinary Net debt 30/09/14 debt operations net Portugal net dividend paid adjusted by 30/09/14 debt deb
Slide 15: Net debt analysis (II)
Net debt analysis (II) New perimeter net debt evolution Net debt(1)/ 0.4x 0.4x 2.5x EBITDA(2) ratio • 2013: +€577 M cashed in from settlement 11-14/2013 6,353 7,646 and +€1,282 M from non-mainland compensation Mainly made up of the • 2014: +€53 M cashed in from settlements 1-6/2014, - following item
Slide 16: Business analysis
1. Completion of Endesa’s corporate re-organization process 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 9M 2014 Results 16 Madrid, 31 October 2014
Slide 17: Highlights
Highlights Flat EBITDA excluding retroactive measures on non-mainland generation Regulated business impacted by RDL 9/2013 and by draft RD on non mainland generation Normalization of the liberalized business performance in 3Q 2014 after extraordinary hydro and wind conditions in 1H Thermal output in
Slide 18: 9M 2014 EBITDA breakdown
9M 2014 EBITDA breakdown 9M 2014 9M 2013 % €M Change (%) €M % Generation & 45% 1,113 +14% 976 37% Generation & Supply Supply Non-mainland 2%(1) 56(1) -84% 348 Non-mainland generation 13% generation Distribution 53% 1,315 -1% 1,330 50% Distribution TOTAL(2) 2,484 -6% 2,654 TOTAL(2) 18 9M 2014 Results
Slide 19: Regulated business
Regulated business Gross margin evolution of Dx and non-mainland Gx -14% -7% €M 2,361 -132 -40 2,189 -162 2,027 550 418 Non-mainland 256 generation 1,811 1,771 1,771 Distribution Non-mainland Gx 9M 2013 (mainly Distribution 9M 2014 Retroactive measures 9M 2014 from 2nd draft RD) (RDL 9/2013) Gross m
Slide 20: Liberalized business
Liberalized business Gross margin evolution +2% €M 1,891 1,938 9M 2013 9M 2014 Margin(1) Margin(1) Energy purchase cost Lower underlying selling price Gas business Social Bonus and Domestic Coal • Normalization of the liberalized business performance in 3Q 2014 after extraordinary hydro and
Slide 21: Fixed costs evolution
Fixed costs evolution By cost type By business line €M -6% 1,671 -6% €M 1,671 1,565 1,565 756 920 Distribution 728 O&M Costs 870 and non- mainland 915 837 Personnel 751 Costs 695 Liberalized(1) 9M 2013 9M 2014 9M 2013 9M 2014 • Managerial actions focused on cost efficiencies to compensate regulatory
Slide 22: Liberalized business
Liberalized business Energy management Mainland output 9M 2014 energy management Electricity sources Electricity sales GWh 42,653 42,570 82 TWh 82 TWh 847 1,020 CCGT 9,285 -0.2% 9,563 SCVP purchases(1) 14 14 SCVP sales(1) Imported coal Energy purchases 6 Pool sales (Domestic 4,646 25 6,270 National
Slide 23: Final remarks
1. Completion of Endesa’s corporate re-organization process 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 9M 2014 Results 23 Madrid, 31 October 2014
Slide 24: Final remarks
Final remarks • Efficient capital structure post releveraging and dividend distribution (€ 6/share (1)) • Attractive dividend policy 9M 2014 Results (1) Distributed on 29th October 2014 24 Madrid, 31 October 2014
Slide 25: Appendix
Appendix Endesa 9M 2014 Results 9M 2014 Results Madrid, 31 October 2014
Slide 26: Net installed capacity and output
Net installed capacity and output(1) Latin Spain&Portugal America Total GW at 30/09/14 Total 21.7 0% 16.5 +4.7% 38.1 +2% Hydro 4.7 0% 8.8 +1% 13.4 +1% Installed Nuclear 3.3 0% - - 3.3 0% net Coal 5.3 0% 0.8 0% 6.1 0% capacity Natural gas 5.4 0% 4.2 +22% 9.7 +8% Oil-gas 2.9 -1% 2.5 -5% 5.4 -3% CHP/Re
Slide 27: Endesa (excl. Enersis): financial debt maturity calendar
Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 30 September 2014: €2,406 M(1) Bonds Bank debt and others ECPs and domestic commercial paper (2) Endesa's 880 liquidity 649 excl. Enersis covers 25 828 415 months of 310 199 117 602 debt 295 81 maturi
Slide 28: Net debt structure
Net debt structure as of September 30th 2014 Structure of Endesa's net debt new perimeter €M 1,293 1,293 Floating 57% Euro 100% Fixed 43% US$ 40% By interest rate By currency Average cost of debt 3.0% 9M 2014 Results Data as of 30 September 2014 28 Madrid, 31 October 2014
Slide 29: Pro-forma Balance Sheet as of September 30, 2014
Pro-forma Balance Sheet as of September 30, 2014 A Consolidated B Pro-Forma Adjustment for Pro-Forma C D:A+B+C Pro-Forma Consolidated Statement of financial Adjustment for Statement of financial Divestment of position at September Dividend position at September 30, ENDESA’s Latam 30,2014 Distributio
Slide 30: Pro-forma Income Statement for 9M 2014
Pro-forma Income Statement for 9M 2014 A B C D: A+B+C Consolidated Income Pro-Forma Pro-Forma Statement for Pro-Forma Adjustment for Consolidated Income the nine-month Adjustment for Divestment of Statement for the nine- period Ended Dividend ENDESA’s Latam month period Ended Sept. 30, 2014 Distribu
Slide 31: “This document is the property of ENDESA and therefore must not be disseminated or
“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 32: 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 9M 2014 Results 32 Madrid, 31 October 2014