Slide 1: 1H 2007 results
1H 2007 results July 25, 2007 Dow Jones Sustainability Indexes Member 2007/2007
Slide 2: Highlights 1H 2007 results
Highlights 1H 2007 results Solid earnings despite demanding environment - Spain and Portugal: moderate demand and lower pool prices offset by Supply, Distribution and Gas - Europe: volume recovery and development of renewable capacity - Latin America: strong growth in Distribution offsets low hydro
Slide 3: Consolidated Results
Consolidated Results EURM Change +2% -3% +3% +1% +4% 3,831 2,777 - -494 1.24x 10,054 5,532 1,255 -29% 1H 2006 3,762 2,871 -480 1.24x 9,946 5,299 1,756 1H 2007 Positive earnings despite demanding environment CONSOLIDATED RESULTS Revenues Gross margin EBITDA EBIT Net financial expenses Leverage EURM N
Slide 4: Solid results thanks to diversified portfolio
Consolidated Results Solid results thanks to diversified portfolio EBITDA: EUR3,831M Spain and Portugal Latin America Rest of Europe 52% 16% 32% EBIT: EUR2,777M Net income: EUR1,255M Spain and Portugal 70% Rest of Europe 16% 34% Rest of Europe 16% Spain and Portugal 50% 14% Latin America Latin Ameri
Slide 5: Efficiency Improvement Plan: ahead of schedule
Consolidated Results Efficiency Improvement Plan: ahead of schedule CONSOLIDATED RESULTS EBITDA improvement due to Efficiency Plan 171 96 204 695 139 385 2005 2006 2007 2008-2009 Total 2009 EURM 1H07 incremental growth: Europe: EUR19M Latin America: EUR6M Spain and Portugal: EUR71M 69% of 2009 targe
Slide 6: Growth in line with targets
Consolidated results Growth in line with targets EURM EBITDA 7,139 EURM EBITDA +8% 3,535 2,824 1H 7,440 227 227 (1) Recognition of revenues for non-mainland generation deficit for 2001-2005: EUR227M in 1H06 and for FY06. 3,831 (1) (1) 6,020 2005 2006 2007 target
Slide 7: Positive cash flow generation
Consolidated Results Positive cash flow generation EURM 1.475 123 EURM Spain and Portugal After-tax operating cash flow (1) Total net investment (2) Rest of Europe Latam Group Cash flow before dividends 2,202 1,640 562 (1) Equivalent to“Net cash flows from operating activities”; (2) Equivalent to “N
Slide 8: EUR1,736M paid out in dividends against 2006 earnings
Consolidated Results EUR1,736M paid out in dividends against 2006 earnings EUR/sh Ordinary activities + 100% capital gains Total dividend 0.37 1.64 +12% 1.27 1.1334 Interim: EUR0.50/sh (Jan 07) + Final: EUR1.14/sh (Jul 07) Dividend 2006 Disposals 2006 Ordinary activities 2006 Ordinary activities 200
Slide 9: Stable debt level
Consolidated Results Stable debt level EURM +2% By Company 56 12,548 14,351 12,719 1,674 1,719 56 1,024 66 5,618 5,207 5,874 1,640 2,202 By Company Latam Rest of Europe Spain, Portugal and other Enersis E. Italia Spain, Portugal and other EURM 19,840 20,312 20,312 17,429(1) Net debt excluding regula
Slide 10: Spain and Portugal
1H 2007 results Spain and Portugal Dow Jones Sustainability Indexes Member 2006/2007
Slide 11: Spain and Portugal: Earnings growth
Spain and Portugal Earnings growth EURM 1H 2007 Change 2,001 1,372 -190 4,832 3,039 Net income 873 2,030 1,503 -192 4,826 2,953 961 1H 2006 Like-for-like change(1) +11% +8% +20% -1% -9% -1% 0% +3% -9% +5% +11% -15% Revenues Gross margin EBITDA EBIT Net financial expenses (1) Stripping out: (a) non-r
Slide 12: Spain and Portugal: Significant EBITDA growth
Spain and Portugal Significant EBITDA growth Highlights Moderate growth in demand and lower pool prices Leadership and margin enhancement in deregulated business Lower CO2 emissions and cost Significant improvement in earnings in Distribution and Gas activities Progress on the regulatory front Gener
Slide 13: Leadership and revenue enhancement in deregulated business
Spain and Portugal Leadership and revenue enhancement in deregulated business SPAIN AND PORTUGAL Sales in deregulated market acted as a hedge against the fall in pool prices Renewal and execution of new contracts in 1H07 at a price equivalent to EUR56/MWh (EUR16MWh higher than wholesale market) Gene
Slide 14: Competitive mainland fuel costs thanks to a balanced generation portfolio
Spain and Portugal Competitive mainland fuel costs thanks to a balanced generation portfolio (1) Estimates (2) Conventional thermal facilities excluding fuel-oil Mainland fuel cost in Ordinary Regime Load factor of thermal plants(2) vs. rest of the sector Even in a scenario with higher rainfall, END
Slide 15: Lower CO2 emissions and costs
Spain and Portugal Lower CO2 emissions and costs 16.05 Mainland emissions deficit Mtn CO2 Economic impact (1) Average CO2 Price EUR/tn CO2 EURM x = SPAIN AND PORTUGAL (1) Also, the updated value of 2006 CO2 emissions included in the balance sheet until April due to falling prices, had a positive imp
Slide 16: Significant improvement in earnings in Distribution and Gas activities
Spain and Portgual Significant improvement in earnings in Distribution and Gas activities Gas Business Gross Margin 1H07 1H06 Total gas sales: up 25% Gas market share: 13.3% EURM Improved remuneration Quality continues to improve: interruption time decreased 34% in the last twelve months Distributio
Slide 17: Progress on the regulatory front
Spain and Portugal Progress on the regulatory front SPAIN AND PORTUGAL Additive tariff New tariff methodology for 2007 Quarterly updates Progress during 1H07 Moving towards full liberalization and market price recognition New Renewables R.D. Enhanced pricing and shorter retroactivity vis-à-vis draft
Slide 18: Progress on the wholesale market regulatory reform
Spain and Portugal Progress on the wholesale market regulatory reform Wholesale market new scheme: Receives market price Forward energy sales: forward market, VPPs and bilateral contracts Tariff deficit less significant Iberian peninsula Generation: energy sales Distribution: energy purchases to ser
Slide 19: Spain and Portugal: Growth in line with targets
Growth in line with targets EBITDA 3,266 2005 2006 3,835 1,545 2,001 1H EURM 2007 target 4,010 1,803 +11% +11% 227 227 (1) Recognition in 2006 of revenues from non-mainland generation deficit in 2001-2005: EUR227M in 1H06 and FY 06 (1) (1)
Slide 20: Europe
1H 2007 results Europe Dow Jones Sustainability Index Member 2006/2007
Slide 21: Europe: Solid results despite unfavourable market environment
Europe 1H 2007 Change +3% -2% +48% -5% +3% 607 449 -37 1,992 782 -36% 206 1H 2006 587 459 -25 2,087 759 322 +1% Like-for-like change(1) EUROPE Solid results despite unfavourable market environment Revenues Gross margin EBITDA EBIT Net financial expense EURM Net income (1) Stripping out non recurring
Slide 22: Europe: Positive EBITDA performance
Europe Positive EBITDA performance EBITDA EURM Highlights Business recovery noted in 2Q07 Margins increased despite falling prices Progress on renewables capacity plan Energy management: extracting additional value from its European asset portfolio Progress made on contributions to Endesa Hellas 587
Slide 23: Italy: business activity under recovery
Europe Italy: business activity under recovery EUROPE Recovery of the business activity throughout 2Q07 following the drop in 1Q07 (due to temperatures and low rainfall) Increase in unit margin due to: Hedged by bilateral contracts and contracts with Acquirente Unico. Decline in CO2 prices Greater s
Slide 24: Italy: significant progress on renewables plan
Europe Italy: significant progress on renewables plan EUROPE Wind Capacity in Italy (MW) 2009 green certificates target (GWh) Procurement 1,482 847 Needs In Italy Endesa currently has 152 MW of wind capacity. The goal is to double this figure by 2009 In 2009 excess generation of green certificates w
Slide 25: Endesa France: EBITDA growth despite low prices
Europe Endesa France: EBITDA growth despite low prices Revenues 17.0 EUR/MWh Unit margin France 18.1 EUR/MWh 1H07 1H06 EdF contract Forward and day ahead mkt Supply Poland 33% 35% 22% 10% 24% 33% 34% 9% 9,172 9,857 -7% (GWh) Decrease in volumes: lower demand (-6%) and prices Increase in unit margin:
Slide 26: Europe: Growth in line with targets
Europe Growth in line with targets EBITDA 887 2005 1,116 587 +3% 1H +3% 453 EURM 2007 Target 607 1,150
Slide 27: Latin America
1H 2007 results Latin America Dow Jones Sustainability Indexes Member 2006/2007
Slide 28: Continued strong growth in operating results
Latin America Continued strong growth in operating results 1H 2007 Change EURM Revenues Gross margin EBITDA EBIT Net financial expense Net income before tax and minorities Net income +7% +5% -42% +2% +7% +8% 1,223 956 176 -267 3,230 1,711 -3% 685 (1) Stripping out the following one-off items from 1H
Slide 29: Challenging Generation environment offset by strong growth in Distribution
Challenging Generation environment offset by strong growth in Distribution Highlights Sharp growth in demand in all countries Generation affected by low rainfall and gas restrictions Significant increase in Distribution sales and margins Cash returns in line with the Strategic Plan targets Upgraded
Slide 30: Latin America: Sharp growth in demand
Latin America Sharp growth in demand 4,159 3,339 5,514 6,058 9,558 9,147 1,864 2,174 8,741 9,018 29,836 +0.3% Generation Output 1H07 1H06 Argentina Brazil Chile Colombia Peru 2,582 2,398 5,562 5,193 6,449 6,088 7,960 7,596 7,887 7,274 Distribution Sales 30,440 +7% 29,736 28,549 1H07 1H06 Low rainfal
Slide 31: Stable EBITDA in generation despite low hydro production
Latin America Stable EBITDA in generation despite low hydro production Fall in hydro output (-8%) and greater use of liquid fuels due to gas restrictions High energy prices boost unitary margins LATIN AMERICA Generation EBITDA(1) +1% Generation unit margin 28.3 EURM (1) Includes EBITDA from Transmis
Slide 32: Strong EBITDA growth in Distribution, especially in Argentina and Brazil
Latin America Strong EBITDA growth in Distribution, especially in Argentina and Brazil Application of new tariffs in Argentina Better margins in Brazil due to lower sector surcharges LATIN AMERICA +8% 39.2 (1) 36.2 1H06 1H07 Distribution EBITDA Distribution unit margin (1) Does not include retroacti
Slide 33: Cash returns in line with the Strategic Plan
Latin America Cash returns in line with the Strategic Plan LATIN AMERICA 57% of the 2005-09 Strategic Plan fulfilled: USD1,600M USD184M from Enersis dividend against 2006 earnings S&P upgraded Enersis and Endesa Chile to BBB (stable) 1H07 (USD, million) Dividends and interest Capital reductions and
Slide 34: Latin America: Growth in line with targets
Latin America Growth in line with targets EBITDA 1,878 2005 2007 Target 2,280 1,223 +4% 1H +7% 831 EURM 2,188 1,145 2006
Slide 35: Conclusions
Conclusions Results in line with announced targets despite demanding environment Inherent value in diversification and vertical integration Active management of the businesses through an experienced and committed team CONCLUSIONS
Slide 36: Back Up
1H 2007 results Back Up
Slide 37: Installed capacity and output
Appendix: Endesa Installed capacity and output(1) Installed capacity Spain and Portugal 23,280 3,398 6,128 1,292 5,363 Europe Latin America Total 9,879 - 3,783 162 1,014 47,772 3,398 10,448 1,454 14,692 1,620 2,740 7,496 5,479 2,180 10,014 MW at 30/06/07 Total Hydro Nuclear Coal Renewables and CHP G
Slide 38: Progress on capacity plans
Appendix: Endesa Progress on capacity plans APPENDIX: ENDESA Spain and Portugal CCGTs: +3,200 MW Non-mainland: +850 MW Renewables: +840 MW TOTAL : +4,890 MW Europe Latin America CCGTs Italy: +800 MW Renewables Italy: +260 MW CCGTs France: +800 MW Renew. France: +200 MW TOTAL : +2,060 MW Hydro: +40 M
Slide 39: Endesa CO2 emissions in the EU
Appendix: Endesa Endesa CO2 emissions in the EU APPENDIX: ENDESA Total Spain (1) Italy France Poland 26.8 6.0 17.8 1.1 0.4 31.5 6.1 22.9 0.6 0.4 4.7 0.1 3.5 -0.5 0.0 Portugal 1.5 1.5 0.0 1H07 allocation (MTon CO2) 1H07 emissions (MTon CO2) 1H07 deficit (MTon CO2) (1) Mainland and non-mainland. Non m
Slide 40: Endesa's CDM portfolio
Appendix: Endesa Endesa's CDM portfolio: 100 Mton CO2 Mt Mt Technological breakdown (45 projects) APPENDIX: ENDESA 3.1 24.9 55.7 5.3 9.7 0.3 Africa Asia Funds* Latam 3.5 24.9 3.4 14.1 32.0 6.4 0.5 4.1 6.2 0.3 0.8 0.2 0.7 0.3 2.7 Biomass Methane capture Energy efficiency Wind HFC23 Hydro Landfill met
Slide 41: Recognised regulatory items pending collection
Appendix: Endesa Recognised regulatory items pending collection APPENDIX: ENDESA 1,442 2,883 214 1,227 Mainland deficit 2006 Historical nonmainland deficit Total EURM Deficit 2007
Slide 42: Favourable debt structure in a context of rising interest rates
Appendix: Endesa Favourable debt structure in a context of rising interest rates Debt by interest rate structure Debt by currency Debt structure Euro 74% USD 11% Chilean Peso 5% Other 10% Fixed 51% Hedged 10% Floating 39% Debt structure: - Fixed-rate or hedged: 61% (1) - Debt in currency in which ca
Slide 43: Debt structure aligned with needs and business risk
Appendix: Endesa Debt structure aligned with needs and business risk Currency risk is mitigated by denominating debt in the same currency in which cash flow is generated High percentage of interest rate hedging reduces volatility in financial expenses 100% 74% 41% 21% 11% 5% 38% 10% Endesa excl. Ene
Slide 44: ENDESA debt maturities excluding Enersis
Appendix: Endesa ENDESA debt maturities excluding Enersis Balance of debt maturities: EUR15,593M (1) EURM Bonds Promissory notes (2) Bank debt (1) This gross balance differs from the total financial debt figure as it does not include transaction expenses pending accrual or the market value of deriva
Slide 45: Enersis debt maturities
Appendix: Endesa Enersis debt maturities Balance of debt maturities: EUR5,656M (1) (1)This gross balance differs from the total financial debt figure as it does not include transaction expenses pending accrual or the market value of derivatives which do not involve any outlay of cash. APPENDIX: ENDE
Slide 46: Breakdown of EBITDA growth targets by business line: 2006-09
Appendix: Endesa Breakdown of EBITDA growth targets by business line: 2006-09 4,630 4,320 4,010 3,835 2,470 2,360 2,280 2,188 1,400 1,280 1,150 1,116 2006 2007E 2008E 2009E EBITDA EURM 7,139 7,440 7,960 8,500 Europe Latam Spain and Portugal
Slide 47: Net income target growth
Appendix: Endesa Net income target growth Ordinary income Capital gains from disposals EURM 3,075 2,620 2,830 2,969 APPENDIX: ENDESA Net income 2006 2007E 2008E 2009E 2,576 2,470 2,720 2,970
Slide 48: Generation output in Spain and Portugal
Appendix: Spain and Portugal Generation output in Spain and Portugal APPENDIX: SPAIN AND PORTUGAL 11,719 11,609 4,001 4,743 16,821 17,569 3,574 3,882 476 157 1,540 1,236 1H06 1H07 Endesa's mainland generation output Nuclear Hydro CCGT Coal Fuel +6% +1% 39,302 38,025 3% R.E Hydro and nuclear: Convent
Slide 49: Competitive mainland fuel costs
Appendix: Spain and Portugal Competitive mainland fuel costs (1) EUR32.0/MWh in 2007 and EUR28.6 in 2006 ex-ATR. (2) Net of coal premiums. Gross cost was EUR25.2/MWh in 2007 and EUR23.6/MWh in 2006. Includes imported coal consumed by national coal plants. Breakdown of impact on fuel costs Breakdown
Slide 50: Renewables and CHP technologies strongly affected by drop in pool prices
Appendix: Spain and Portugal Renewables and CHP technologies strongly affected by drop in pool prices (1) Accounting output (corresponding to booked sales) EBITDA (EURM) -5% 94 1H07 1H06 89 Sale price renewable/ CHP 95.8 EUR/MWh 84.7 EUR/MWh -12% Output(1) 1,236 GWh 1,540 GWh +25%
Slide 51: Renewables/CHP: operating indicators
Appendix: Spain and Portugal Renewables/CHP: operating indicators MW Total CHP Wind Mini-hydro Other Net 1,459 971 196 46 246 Accounting 1,110 867 187 22 34 Gross 2,272 1,358 240 140 533 1H 2006 Net 1,592 1,139 196 46 211 Accounting 1,292 1,044 187 22 39 Gross 2,387 1,554 240 140 452 1H 2007 Install
Slide 52: Integrated management of asset portfolio
Appendix: Europe Integrated management of asset portfolio Trading EBITDA: EUR21M Additional contributions: - Endesa Italia: EUR15M - Endesa France: EUR8M 16 GWh 776 GWh 18 GWh 25 GWh 5 GWh 20 GWh 7 GWh Physical assets Virtual assets Interconnection 100 GWh 15 GWh NORD POOL DAM APX EEX Powernext GME
Slide 53: Renewables in Europe: wind projects
Appendix: Europe Renewables in Europe: wind projects APPENDIX: EUROPE Operational capacity Capacity under construction (1) (1) Only includes capacity under construction and not under development 1Q10 Total Italy Total France 1Q08 2Q08 190 54 58 64 10 MW 1Q08 2 Monte Cute expansion Piano di Corda Ser
Slide 54: Endesa Hellas: strategic alliance with Mytilineos Group
Appendix: Europe Endesa Hellas: strategic alliance with Mytilineos Group Assets (MW): Date of operation: Leveraging know-how and track record in Italy and France EUR485M + Success premium + Price adjustment Total EUR600M IRR 10% 49.99% Also, CCGT and coal option Renewables CCGT CHP 400 150 412 511 5
Slide 55: Latin America: Highlights by country
Appendix: Latin America Highlights by country APPENDIX: LATIN AMERICA 1H07 EBITDA (EURM) Dist: EUR83M (+63%) Gen: EUR73M (+9%) Brazil Highlights Argentina Better margins in Distribution in Brazil due to lower sector surcharges Tariff revisions at Coelce (provisional VAD down 7%) Annual tariff revisi
Slide 56: Latin America: Highlights by country
Appendix: Latin America Highlights by country APPENDIX: LATIN AMERICA 1H07 EBITDA (EURM) Highlights Colombia Higher revenues in Distribution on the back of higher demand (+7%) Fall in output (9%) due to lower rainfall and increased maintenance work (Guavio hydro plant) Increase in capacity at Guavio
Slide 57: Direct stakes held by Endesa Internacional
Appendix: Latin America Direct stakes held by Endesa Internacional APPENDIX: LATIN AMERICA Direct 60,6% 60% Generation business Operating companies Distribution business Codensa: 27% 129 133 403 Emgesa: 25% 90 105 228 EEB: 5% N/A N/A N/A E. Brasil: 28% 304 373 878 Edesur: 6% 51 83 46 DockSud: 40% 18
Slide 58: Enersis and Endesa Chile, trading at record levels
Appendix: Latin America Enersis and Endesa Chile, trading at record levels Stock market performance over last 5 years The stocks' performance underscores the track record of and favourable outlook of the Latin American subsidiaries +528% +281% Endesa Chile (ADR) Enersis (ADR) Market cap (US$M) 12,59
Slide 59: Significant unrealised capital gains in Latin America
Appendix: Latin America Significant unrealised capital gains in Latin America APPENDIX: LATIN AMERICA * Market value of Endesa’s stake in Enersis and book value for rest of portfolio (plus an estimated EUR600M in additional market value) Enersis Other stakes EURM 7,400 4,000 5,800 3,000 1,000 1,000
Slide 60: Legal Information
Legal Information This document was made available to shareholders of Endesa, S.A.. In relation with the announced joint offer by ENEL SpA and Acciona, S.A., Endesa shareholders are urged to read the report of Endesa’s board of directors when it is filed by the Company with the Comisión Nacional del
Slide 61: 1H 2007 results
1H 2007 results July 25, 2007 Dow Jones Sustainability Index Member 2006/2007 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ENDESA, S.A. Dated: July