Enel SpA · MIL:ENEL
Enel SpA — Investor Presentation (December 2007)
21 slides from Enel SpA's investor presentation, Dec 12, 2007
Slide 1: Enel: a multinational, well diversified integrated energy Group
Enel: a multinational, well diversified integrated energy Group London December 12, 2007 1
Slide 2: Agenda
Enel SpA Investor Relations Agenda The new Enel Update on new initiatives Update on Endesa Conclusions 2
Slide 3: New business mix - 2006 proforma EBITDA
Enel SpA The new Enel Investor Relations New business mix1 – 2006 proforma ebitda “The new ” 52% 48% 44% 56% 37% 63% Generation & Network Sales Business mix will remain substantially balanced between regulated and non regulated activities (1) Considering 67.05% stake of Endesa and 100% OGK-5; exclud
Slide 4: New Enel fuel mix
Enel SpA The new Enel Investor Relations New Enel fuel mix1 10.7% 21.5% 27.7% 12.7% Oil & Gas 12.2% CCGT 11.9% 24.2% Coal 29.1% Nuclear 31.9% 14.8% Other renewables 1.8% 9.5% Hydro 6.5% 3.2% 4.2% 35.9% 24.5% 17.8% “The new ” ….hydro, other renewables, nuclear... (1) Based on FY06 production. Net of
Slide 5: Agenda
Enel SpA Investor Relations Agenda The new Enel Update on new initiatives Update on Endesa Conclusions 5
Slide 6: Further initiatives: France
Enel SpA Update on new initiatives Investor Relations Further initiatives: France Agreement with EDF providing for Enel to take part in the Flamanville EPR nuclear plant and in the following five EPR projects expected in France with a 12.5% stake . Anticipated capacity growing by 600 MW in 2008 and
Slide 7: Further initiatives: Albania
Enel SpA Update on new initiatives Investor Relations Further initiatives: Albania Signed MOU to build a “state of the art” coal power plant: 1,300MW Strategic Rationale: 9 leverage on low cost output to be used in Italy 9 Support domestic Albanian market with a more balanced production mix 9 Export
Slide 8: Further initiatives: Romania
Enel SpA Update on new initiatives Investor Relations Further initiatives: Romania BRAILA: 800 MW Coal Brownfield GALATI FREE TRADE ZONE: 800 MW Coal Greenfield CERNAVODA 3&4: investors selection for Greenfield nuclear units (2x720MW). BLUE LINE: acquisition of 100% with rights to develop approx 200
Slide 9: Agenda
Enel SpA Investor Relations Agenda The new Enel Update on new initiatives Update on Endesa Conclusions 9
Slide 10: Transaction rationale
Enel SpA Update on Endesa Investor Relations Transaction rationale Strong contribution to operating and financial growth Business diversification and wider global footprint improves risks/return profile Creation of a global leader in renewable energies Strong potential for synergies, savings and cro
Slide 11: Endesa platform
Enel SpA Update on Endesa Investor Relations Endesa platform Solid operating and financial performance from a diversified portfolio Efficiencies ahead of current Business Plan Iberia: 9 Leadership in liberalized market 9 Competitive fuel cost 9 Growth in line with current Business Plan Latam 9 Stron
Slide 12: Endesa: Leading position in high growth markets
Enel SpA Update on Endesa Investor Relations Endesa: Leading position in high growth markets 48% Output Sales 43% 29% 31% 28% 24% 21% 18% 15% 17% 6% 1% Spain Chile Colombia Peru Argentina Brazil Market position #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 Demand Growth 3.5% 3.5% 6.3% 6.3% 4.5% 4.5% 6.4% 6.4% 5.1%
Slide 13: Synergies by category
Enel SpA Update on Endesa Investor Relations Synergies by category 1010 330 €mn 330 680 4% 4% 698 Savings 1 Savings 1 787 Opex & Margins 457 475 Capex 223 223 223 Total Synergies Efficiencies Additional savings at already synergies/ included efficiencies regime in the 2012 strategic plan further pos
Slide 14: Annual savings of €mn 680 by 2012
Enel SpA Update on Endesa Investor Relations Annual savings of €mn 680 by 2012 6% 1 4% % cost base 6%1 4% 2006 3% 3% 94 680 9 LatAm 216 85 101 37 3% 3% 179 123 NEEP 2.5% 2.5% 16 12% 525 12% 107 97 16 150 81 Corporate & 22 other 74 54 54 Corporate Procurement Generation Distribution Energy Total & ot
Slide 15: Synergy levers
Enel SpA Update on Endesa Investor Relations Synergy levers Corporate, general services, IT, R&D 84 €mn EBITDA Generation Synergies: 123 €mn 457 M€ Distribution 156 €mn Year 1: 29% Year 3: 81% Year 5: 100% Fuel, Energy management 94 €mn IT, R&D 66 €mn CAPEX Synergies: 223 M€ Procurements 97 €mn Year
Slide 16: Credit Facility Agreement Euro 35,000,000,000 1/2
Enel SpA Update on Endesa Investor Relations Credit Facility Agreement Euro 35,000,000,000 1/2 Date Reduction Amount Note 10/04/2007 35.0 bn€ Credit Facility Agreement 20/06/2007 5.0 bn€ 30.0 bn€ Bond issuance (Euro/GBP) 24/09/2007 2.0 bn€ 28.0 bn€ Bond issuance (USD) 10/10/2007 5.0 bn€ 23.0 bn€ PTO
Slide 17: Credit Facility Agreement Euro 35,000,000,000 2/2
Enel SpA Update on Endesa Investor Relations Credit Facility Agreement Euro 35,000,000,000 2/2 Facility A Facility B Facility C Total 1 year 3 year 5 year original amount 10 €bn 15 €bn 10 €bn 35 €bn residual amount 278.6 €mn 11.4 €bn 7.8 €bn 19.5 €bn Funding Cost for the Endesa acquisition: 5,20% 17
Slide 18: Agenda
Enel SpA Investor Relations Agenda The new Enel Update on new initiatives Update on Endesa Conclusions 18
Slide 19: Conclusions
Enel SpA Investor Relations Conclusions Upon OGK-5 completion we have achieved our major acquisition program Capital structure under review 9 For both Enel and Endesa strong commitment to maintain “A” rating Growth will be driven by: 9 Organic capex in countries where Enel is already present 9 Lever
Slide 20: Disclaimer
Enel SpA Investor Relations Disclaimer THESE SLIDES HAVE BEEN PREPARED BY THE COMPANY SOLELY FOR THE USE DURING THIS ANALYST PRESENTATION THE INFORMATION CONTAINED HEREIN HAS NOT BEEN INDEPENDENTLY VERIFIED. NONE OF THE COMPANY OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER IN NEGLIGENCE OR
Slide 21: Contact us
Enel SpA Investor Relations Contact us Investor Relations Team (investor.relations@enel.it) Luca Torchia (Head of IR) +39 06 83053437 Massimiliano Bevignani (Stock analysis and IR reporting) +39 06 83057023 Donatella Izzo (Buy-side) +39 06 83057449 Fausto Sblandi (Sell-side) +39 06 83052226 Visit ou