Endesa S.a. · BME:ELE
Endesa — H1 2006 Earnings Presentation
78 slides from Endesa's earnings presentation, Jul 25, 2006
Slide 1: 1H 2006 results: Endesa's greater value
25 July 2004 1H 2006 results Endesa's greater value
Slide 2: Excellent 1H 2006 results
Excellent 1H 2006 results o Sharp increases across income statement o Strong growth in all business lines o Sustained performance clearly above targets New commitments to future growth o Higher EBITDA and Net Income in 2006 and 2009 o (euro)2,900 M of higher dividends up to 2009
Slide 3: Excellent 1H 2006 results
Excellent 1H 2006 results 1H 2005 1H 2006 % chg 2,824 1,969 -536 8,256 4,220 +33% +46% -10% +20% +26% 3,762 2,871 -480 9,946 5,299 Sales Gross margin EBITDA EBIT Net financial expenses (euro)M Net income 956 1.756 +84% RESULTS SUMMARY 31.12.05 30.06.06 % chg Leverage 1.12x +0.13p1.25x
Slide 4: Strong growth in all business lines
Strong growth in all business lines RESULTS SUMMARY EBITDA: (euro)3,762M Spain and Portugal Latam Europe +33% +38% +30% +31% 54% 16% 30% EBIT: (euro)2,871M +46% Europe +39% 16% Latam +52% 32% Spain and Portugal +44% 52% 33Net income: (euro)1,756M +84% Spain and Portugal +42% 55% Europe +77% 18% Lata
Slide 5: Results beating targets
Results beating targets RESULTS SUMMARY EBITDA performance 3,762 3,196 2,824 M(euro) +33% 1H05 2H05 1H06 S= (euro)6,958M EBITDA in the last 12 months above target for full year 2006
Slide 6: Efficiency Improvement Plan ahead of schedule
Efficiency Improvement Plan ahead of schedule RESULTS SUMMARY EBITDA improvement due to Efficiency Plan (euro)M 233 525 109 292 2005 2006 2007-2009 Total 2009 Incremental growth in 1H06 o Europe: (euro)34M o Latin America: (euro)6M o Spain and Portugal: (euro)69M 181 55Nearly 100% of the incremental
Slide 7: Significant progress in asset disposal plan
Significant progress in asset disposal plan RESULTS SUMMARY Non-core asset disposal plan for 2006 M(euro) 250 59 378 28 > 685 465 Rest of Foreseeable exceed of the the year target set: o Sale of real estate assets in 2H 06 of Palma for (euro)240M 1H06 o Sales from other real estate assets: (euro)80
Slide 8: Sale of Palma de Mallorca real estate assets
RESULTS SUMMARY Sale of Palma de Mallorca Real Estate assets well in excess of planned values Assets Value M(euro) 240 130 150 Impact in Endesa: o Net cash received: (euro)213 M o High capital gains due to low book value of the real estate assets o Participation in 45% of further upside o Increased
Slide 9: Spain and Portugal 1H 2006 results
Spain and Portugal 1H 2006 results
Slide 10: Spain and Portugal: Strong growth in results
SPAIN AND PORTUGAL Strong growth in results Sales Gross margin EBITDA EBIT Net financial expenses M(euro) 1H 2005 1H 2006 % chg 1,545 1,045 -229 4,040 2,411 +31% +44% -16% +19% +22% 2,030 1,503 -192 4,826 2,953 Net income 679 +42%961
Slide 11: Spain and Portugal: Strong growth in EBITDA
SPAIN AND PORTUGAL Strong growth in EBITDA EBITDA (euro)M +31% 2,030 Historical non- mainland deficit ((euro)227M) Generation + Supply Distribution 1H05 1H06 1,545 494 1,477 1,051 553 Highlights Positive regulatory development in 1H06 and upbeat prospects Operational improvements in distribution Com
Slide 12: Positive regulatory development in 1H06
Positive regulatory development in 1H06 SPAIN AND PORTUGAL Regulatory milestones Implications Tariff Wholesale market Non- mainland o Total increase in 2006: 9.1% o Removal of 2% cap o Recognition and monetisation of the tariff deficit o Removal of the tariff in 2007-2011 o Promotion of bilateral co
Slide 13: Positive regulatory outlook
Positive regulatory outlook SPAIN AND PORTUGAL Progress expected Implications Distribution Wholesale market Renewables Large customers o Existing grid: Remuneration on book value and costs standardization o Recognition of new investments o Forward contracts, capacity auctions o Exclusion of renewabl
Slide 14: Publication of 2008-2012 NAP
Publication of 2008-2012 NAP SPAIN AND PORTUGAL o Total allocation to regulated sectors:145 MtCO2/year Allocation to electricity sector: o Allocation to electricity sector: 55 MtCO2/year o Additional reserve for new players: 8 MtCO2/year Criteria for allocation to plants: o Priority given to energy
Slide 15: Provisional impact of RDL 3/2006
Provisional impact of RDL 3/2006 SPAIN AND PORTUGAL January- February M(euro) Deduction of the value of the assigned emission rights for the period -121 23,683 (1) Generation matched with distribution o 56% of distribution purchases o Provisional price: (euro)42.35/MWh o Final price adjustable durin
Slide 16: Competitive mainland fuel costs
SPAIN AND PORTUGAL Competitive mainland fuel costs Endesa Rest Sector (e) (euro)/MWh (euro)/MWh 15.815.8 22.1 20.6 +0.1% +7.3% 1H05 1H06 1H05 1H06 o ENDESA enjoys the sector's most competitive and efficient generation portfolio o Good evolution of fuel costs despite rise in market prices o Stronger
Slide 17: Customer portfolio with intrinsic value and hedge against price volatility
SPAIN AND PORTUGAL Customer portfolio with intrinsec value and as hedge against wholesale price volatility Generation revenues from sales to: Pool (bilateral with Deregulated market Distribution) 59.58 (euro)/MWh 53.03 42.35 Value of Supply: o Strategy to hedge regulatory and market risks o Long-ter
Slide 18: Spain and Portugal: performance exceeding 2006 targets
EBITDA SPAIN AND PORTUGAL First half Performance clearly exceeding 2006 targets (euro)M 3,266 3,620 1,545 2,030 +11% +31% 2005 2006 previously announced target
Slide 19: Europe 1H 2006 results
1H 2006 results —— re —— endesa
Slide 20: Europe: Results underscore strength of European business
EUROPE Results underscore strength of European business 1H 2005 1H 2006 % chg 453 331 -29 1,885 614 +30% +39% -14% +11% +24% 587 459 -25 2,087 759 Sales Gross margin EBITDA EBIT Net financial expenses (euro)M 146 (1) +121%322Net income excl. asset disposals 182 +77%322 (2)Net income (1) Does not inc
Slide 21: Europe: Strong growth in EBITDA
EUROPE Strong growth in EBITDA EBITDA (euro)M 450 (1) 587+30% 363 485 102 87 1H05 1H06 Snet Endesa Italia (1) EBITDA 1H05: (euro)453 M including Trading and Others Highlights Italy: Increasedoutput andwider margins Tax optimisation Progress made on regasification projects, renewables and new capacit
Slide 22: Italy: Increased output and higher margins
EUROPE Italy: Increased output and higher margins Output (GWh) Unit margin ((euro)/MWh) +13% 13,065 34.2 11,571 5,898 14 Wind +29% 13 5,256 CCGT 26.4 2,6052,032 3,190 2,900 1,370 1,358 Hydro Coal Fuel Gas 1H05 1H06 1H05 1H06 o New CCGTs coming on-stream (800 MW) Sales (GWh) EBITDA ((euro)M) o Increa
Slide 23: Italy: Progress in executing the Strategic Plan
EUROPE Italy: Progress in executing the Strategic Plan Access to competitivegas Growth in renewable energies Capacity Plan o Progress on the Livorno regasification project (4 bcm): -All authorisations have been obtained -25.5% share and 2 bcm regasification capacity -Work will start in 2H06 and the
Slide 24: France: Increased output and margins
EUROPE France: Increased output and margins Snet sales (GWh) +23% 9,857 8,044 5,396 5,606 4,251 2,648 Output Purchases 1H05 1H06 o Significant developments on the supply side: -Auchan (400 GWh in 2006) -SNCF (6,600 GWh in 2007-2011) o Significant progress in executing Industrial Plan 8,044 1H061H05
Slide 25: Europe Trading: Increase in activity
2424Physical assets Virtual assets Interconnection Switz Slovenia 228 GWh 615 GWh 761 GWh 108 GWh 111 GWh 216 GWh 299 GWh19 GWh* Holland EUROPE Trading: Increase in activity EBITDA Trading: (euro)21M Additional contributions: -Endesa Italia: (euro)17M -Snet: (euro)5M +50%
Slide 26: Europe: performance exceeding 2006 targets
EUROPE Performance clearly exceeding 2006 targets EBITDA (euro)M +17% 887 453 +30% First half 1,040 587 2005 2006 previously announced target
Slide 27: Latin America 1H 2006 results
Latin America 1H 2006 results
Slide 28: Latin America: Strong growth in results
LATIN AMERICA Strong growth in results 1H 2005 1H 2006 % chg(euro)M Sales Gross margin EBITDA EBIT Net financial expenses Net income before minorities Net income (1) 831 598 114 -241 2,331 1,194 +38% +52% +165% +9% +30% +33% 1,145 909 302 -263 3,033 1,587 304 +128%692 (1) Includes impact of (euro)10
Slide 29: Latin America: Sustained and profitable organic growth
LATIN AMERICA Sustained and profitable organic growth EBITDA (euro)M +38% 1,145 -19 and other 1H05 1H06 831 377 608 556 426 28 Distribution Transmission Generation Highlights Output (+4.6%) and sales (+5.3%) rising in all countries and stable exchange rates Improved generation margins, mainly in Chi
Slide 30: Improved generation margins, mainly in Chile
LATIN AMERICA Improved generation margins, mainly in Chile EBITDA Generation ((euro)M) Generation margin US$/MWh +43% 608 Argentina Strategic 2004-2009Plan CAGR +4.5% Brazil 426 74 79 111 107 137 29154 Colombia Peru 65 50 66Chile +31% 26.0 19.8 1H05 1H06 1H05 1H06 o Output rose +4.6% o Increased who
Slide 31: High EBITDA growth in distribution, especially in Brazil
High EBITDA growth in distribution, especially in Brazil LATIN AMERICA EBITDA Distribution ((euro)M) Distribution margin US$/MWh 35 42 111 129 81 102 118 23232 51 Argentina Brazil Chile Colombia Peru +47% 377 556 36,2 29,6 +22% CAGR +2.6%2004-2009 Strategic Plan 1H05 1H06 1H05 1H06 o Sales rose +5.3
Slide 32: Advances in Capacity Plan
Under construction Generatorin gas turbine undergoing final tests Advances in Capacity Plan Palmucho (2007) Etevensa (2006) San Isidro (2007) Second CCGT 377 MW Aysen (2010-) Endesa Eco (2006-07) LATIN AMERICA Chile Peru o Hydro Plan (Ralco ecological flow) 32 MW Renewables 24MW Hydro project 2,430
Slide 33: Advances in optimising organisational structure
LATIN AMERICA Advances in optimising organisational structure Etevensa -Edegel merger Carried out June 2006 Creation of Brazilian holding Carried out October 2005 IFC acquired stake (2.7%) in Endesa Brasil Chilectra -Elesur merger Carried out March 2006 Emgesa - Betania merger In progress Planned fo
Slide 34: IFC acquires stake in Endesa Brasil
IFC acquires stake in Endesa Brasil LATIN AMERICA Transaction conditions Endesa Brasil Structure o Subscription by IFC in a capital increase of US$50M for 2.7% of Endesa Brasil capital o Public offering planned in next three years, and exit clause for IFC at market prices otherwise o First non-Group
Slide 35: Cash returns in line with Strategic Plan targets
LATIN AMERICA Cash returns in line with the Strategic Plan targets US$ Million 2005 1H06 Total Dividends and interest 86 57 143 Capital 195 50 245 reductions Asset disposals 27 27 Total 308 107 415 o 42% of Strategic Plan's targets met (US$1,000M) o Initiating capital reduction in Colombia for US$14
Slide 36: Latin America: performance exceeding 2006 targets
LATIN AMERICA Performance clearly exceeding 2006 targets EBITDA (euro)M +10% 1,878 2,065 1,145 +38% First half 831 2005 2006 previously announced target
Slide 37: Financial analysis 1H 2006 results
Financial analysis 1H 2006 results
Slide 38: Positive cash flow in all businesses
FINANCIAL ANALYSIS Positive cash flow in all businesses (euro)M Change in CF + 20% -2% +25% vs. 1H05 678 340 1,257 374 85 1,017 Cash Flow Capex Cash Flow Capex Cash Flow Capex Spain and Portugal Europe Latin America
Slide 39: Debt stability
Debt stability FINANCIAL ANALYSIS (euro)M By By+3.8 % Business Company 22852918,281 18,983 18,983 1,286 6,109 434 2,275 2,654 1,540 5,583 Enersis Latam 993 4,675 E. Italia Europe Spain, Portugal Spain and and rest Portugal and Others 10,886 11,860 13,315 Net debt at Cash Flow Investments + Dividends
Slide 40: Recognised regulatory receivables of more than €3,400M
Recognised regulatory receivables of more than (euro)3,400M FINANCIAL ANALYSIS (euro)M 3,469 102 1,092 572 1,703 (1) Mainland Mainland Non-mainland CTCs Italy Total deficit 2005 (1) deficit 1H06 deficit 2001- 2006 o Net debt of regulatory items: (euro)15,514M o RD approved allowing securitisation of
Slide 41: Favourable debt structure in a rising interest rates environment
FINANCIAL ANALYSIS Favourable debt structure in a rising interest rates environment Debt structure o Structure of debt: (euro)18,983M (euro)18,983M -Fixed rate or hedged debt: 79% -Debt denominated in currency in which cash flow is generated Variable 21% US$ 13% Ch. Peso 6% Other 6% o Average cost o
Slide 42: Conclusions: Performance clearly exceeding 2006 targets
CONCLUSIONS Performance clearly exceeding 2006 targets EBITDA +12% (euro)M 6,020 +33% 6,725 3,762 2,824 First half 2006 previously 2005 announced target
Slide 43: Excellent 1H 2006 results
Excellent 1H 2006 results o Sharp increases across income statement o Strong growth in all business lines o Sustained performance clearly above targets New commitments to future growth o Higher EBITDA and Net Income in 2006 and 2009 o (euro)2,900 M of higher dividends up to 2009
Slide 44: New commitments to future growth
New commitments to future growth Performance clearly exceeding targets o EBITDA and net income growth above targets o Dividends of over (euro)4,200M (60% of previous target) in first two years of the plan Positive performance of the environment o Regulatory advances in Spain, good outlook o Forecast
Slide 45: Committed to higher results throughout the period
NEW COMMITMENTS Committed to higher results throughout the period EBITDA 8,330 6,930(1) 6,020 6,725 M(euro) 7,500 2005 New 2006 New 2009 Target Target Higher EBITDA target in 2006 and 2009 (1) Based on a final price in Spain of 54.5 (euro)/MWh according to RDL 3/2006 (-350 M(euro) with provisional p
Slide 46: Committed to higher results in all businesses
NEW COMMITMENTS Committed to higher results in all businesses EBITDA 8,330 M(euro) 6,930(1) 6,020 4.590 887 1.370 3,266 3,750 1,100 2.370 Latin America Europe Spain and Port. 2,080 1,878 2005 New 2006 New 2009 Target Target Higher EBITDA target in all businesses (1) Based on a final price in Spain o
Slide 47: Spain and Portugal: increased margins, improved efficiency and regulation
Spain and Portugal: increased margins, improved efficiency and regulation NEW COMMITMENTS EBITDA 2009 (euro)M 140 4.590 170 80 4.200 Ordinary mainland regime: +(euro)150 M Renewables/CHP: +(euro)20 M Reduction of fixed costs: +(euro)50 M Margin improvement: +(euro)30 M Non-mainland generation: +(eur
Slide 48: Europe: increased margins and efficiency improvements
Europe: increased margins and efficiency improvements NEW COMMITMENTS EBITDA 2009 (euro)M 100 1.370 1.050 20 20180 Higher unit margin: +(euro)120 M Improved efficiency: +(euro)60M Higher peak price: +(euro)20 M Previous 2009 Increase in Increase in Trading & Sales Poland New 2009 Target target margi
Slide 49: Latin America: operational improvements
Latin America: operational improvements NEW COMMITMENTS EBITDA 2009 (euro)M 2.250 2.370 -130 250 Generation margin: +130 M(euro) Distribution margin: +107 M(euro) Increased activity: +7 M(euro) Improved efficiency: +6 M(euro) Previous 2009 target Operating New macroeconomic New 2009 Target Improveme
Slide 50: Committed to higher Net Income throughout the period
Committed to higher Net Income throughout the period NEW COMMITMENTS 2,900(1) 3,182(1) 2,400 2,200 3,000(1) (euro)M 2005 2006 Target 2009 Target Higher Net Income target in 2006 and 2009 (1) Net income from asset sales: (euro)1,341 M in 2005, ~ (euro)480 M in 2006, ~ (euro)120 M in 2009
Slide 51: Committed to higher dividends throughout the period
Dividend from ordinary activities CAGR > 12% Dividends from disposals 100% pay-out of capital gains ~(euro)7,600M in dividends from ordinary activities in 20052009 ~(euro)2,300M in capital gains from disposal of non-core assets + Committed to higher dividends throughout the period NEW COMMITMENTS Ad
Slide 52: Reinforced commitments to shareholders throughout the period
Reinforced commitments to shareholders throughout the period NEW COMMITMENTS Commitment New previously commitment announced 2006 EBITDA target (euro)6,725M (euro)6,930M 2006 Net Income target (euro)2,400M (euro)2,900M 2009 EBITDA target (euro)7,500M (euro)8,330M 2009 Net Income target (euro)2,200M (
Slide 53: Endesa's greater value
Endesa's greater value NEW COMMITMENTS EBITDA ((euro)M) Consensus below new 2006 targets . .and growth targets for 2009 8,330 6,930 6,571 Endesa IBES +6% 6,020 2005 2006 2009
Slide 54: Conclusions
Conclusions CONCLUSIONS o Excellent 1HO6 results o Strong growth in all business lines Endesa's o Commitment to higher results in 2006-greater value 2009 o (euro)9,900M to be paid in dividends in 2005-2009
Slide 55: Back Up
Back Up
Slide 56: Generation business in Spain and Portugal
Generation business in Spain and Portugal SPAIN AND PORTUGAL Endesa's mainland generation business (GWh) 11,60911,218 4,0014,444 16,82118,279 3,8823,581 4761,508 1,008 1,236 Nuclear Hydro CCGT Coal Renewable/CHP Fuel -0.3% -8% 38,02540,038 -5% 1H05 1H06
Slide 57: Provisional impact of RDL 3/2006
SPAIN AND PORTUGAL Provisional impact of RDL 3/2006 PURCHASESSALES 22,60611,74510,30323,757 1,708 10,303 11,745 Distribution purchases on the with own with mkt Supplier to mkt 830Ordinary generation regime Market Bilateral agreements Bilateral with supplier type agreement with distributor Bilateral
Slide 58: Competitive mainland fuel costs
SPAIN AND PORTUGAL Competitive mainland fuel costs Breakdown of mainland unit fuel Breakdown of impact on fuel cost costs 1H05 1H06 27.2 32.3 (2) 18.9% 22.4 22.0 -1.8% 19.0 19.8 4.2% 49.1 76.4 55.7% % chg. 15.8 0.1%15.8 24.7 25.4 3.2% (euro)M +37 -73 (euro)/MWh 616 CCGT Domestic coal (1) 580 Increas
Slide 59: Competitive ordinary regime mainland fuel costs
SPAIN AND PORTUGAL Competitive ordinary regime mainland fuel costs Fuel costs -quarterly performance ((euro)/MWh) 23 21 19 17 15 13 11 9 7 Rest of sector (e) (excl Endesa) Iberdrola (e) Endesa 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 o Most competitive and efficient generation portfolio in
Slide 60: Emission cost management
Emission cost management SPAIN AND PORTUGAL Key player in the CO2 Key player in development of market CDM projects 78,1 35,0 25.8 37.8 7.9 17.3 7.5 4.6 23.0 46.6 8.2 Funds Asia Latam Others 30,4 62,0 8,2 Total : 178.7 Mt 30,0 25,0 20,0 15,0 10,0 5,0 0,0 CO2 prices Endesa purchases LOI signed ERPA si
Slide 61: Unlocking the value of its customer portfolio
SPAIN AND PORTUGAL Unlocking the value of its customer portfolio Average sales price Increase in sales on the increase ((euro)/MWh) deregulated market (GWh) 18,88617,535 72.4 64.4 +12% +8% 1H05 1H06 1H05 1H06 o Value of customer portfolio as a hedge against wholesale price volatility o Renewal and s
Slide 62: Underlying wholesale power prices
Underlying wholesale power prices SPAIN AND PORTUGAL Generation revenues from sales to: Pool (bilateral with Deregulated market Distribution) (euro)/MWh 51.0 33.8 44.5 RDL 3/2006 Underlying price Renewals from sales in the liberalized market o The difference in prices between the energy sold under t
Slide 63: Significant Progress in Capacity Plan
SPAIN AND PORTUGAL Significant Progress in Capacity Plan Capacity plan 2006 MW New 2005 2006 CCGT 1,191 3,946 1,349 (1) +400 400 MW 1H06 Non mainland +520 246 MW 1H06 Renewables +400 114 MW 1H06 Total 22,808 +1,320 MW 760 MW 1H06 A further 1,320 MW slated to come on- stream in 2006 28% increase in r
Slide 64: Growth in renewables/CHP
Growth in renewables/CHP SPAIN AND PORTUGAL Power (MW) (1) Output (GWh) (1) +15% +5% 2,272 533 1,358 3,1841,974 3,026 508 1,123 Cogen Wind 140 202 240 140 Mini Hydro Others 1,125 1,373 1,294 1,251 261 302 299 305 1H05 1H06 1H05 1H06 Sales ((euro)M) EBIT ((euro)M) +52% +53% 88 141 42 64 1H05 1H06 1H0
Slide 65: Spain: EBITDA growth 2004-2009
SPAIN AND PORTUGAL Spain: EBITDA growth 2004-2009 Improved Increased activity and margins +(euro)1,328M EBITDA growth operating04-09: efficiency: (euro)2,118M +(euro)400M Distribution: +(euro)300M Cost improvement: +(euro)195M Improved contribution margin: +(euro)205M Island generation: +(euro)210M
Slide 66: Higher contribution margins in ordinary mainland regime
Ordinary mainland regime: Higher contribution margins in ordinary mainland regime +(euro)748M SPAIN AND PORTUGAL Spain: EBITDA growth 2004-2009 2004 2009 %. Output GWh 80,756 82,756 2,000 Gross unit margin (euro)/MWh 21.3 29.8 8.5 -Market revenues 34.8 51.0 16.2 -Variable costs (incl. CO2) 13.5 21.2
Slide 67: Main assumptions used to calculate EBITDA growth are conservative
SPAIN AND PORTUGAL The main assumptions used to calculate EBITDA growth are "conservative" Activity growth assumptions o Increase in mainland ordinary regime output of only 2,000 GWh with 3,200 MW of new capacity installed: 16,000 GWh* increase in CCGT 14,000 GWh* reduction in coal and fuel- gas o I
Slide 68: Gross margin increase in ordinary mainland generation
SPAIN AND PORTUGAL Gross margin increase in ordinary mainland generation Output, fuel costs and CO2 Gross margin performance 2004 Unit gross margin: (euro)21.3/MWh -Mkt revenue: (euro)34.8/MWh -Variable cost: -(euro)13.5/MWh Output: 80,756 GWh Gross margin: (euro)1,720M Output Fuel Cost (GWh) ((euro
Slide 69: Italy: Capacity Plan 2006-2009
EUROPE Italy: Capacity Plan 2006-2009 MW 425 174 134 30 87 Renewable capacity plan 2006 2007 2008 2009 Total MW 1.100 400 400 300 CCGT capacity plan 2006 2007 2008 2009 Total
Slide 70: High growth in output and sales
High growth in output and sales LATIN AMERICA Generation (GWh) Distribution (GWh) +4.6% (1) (2) 29,736 +5.3% (3) 9,018 28,549 28,416 8,667 27,101 7,274 Argentina 4,914 5,193 5,809 6,088 7,217 7,596 6,921 +5% +4% 3,192 3,339 5,944 6,058 8,437 9,147 2,176 2,174 Brazil 0% +5% Chile +8% +5% Colombia +2%
Slide 71: Capacity Plan: The Aysen project
LATIN AMERICA Capacity Plan: The Aysen project LAT 2,000 km Santiago Ralco Aysen Plant MW (*) Operational El Salto 25 2013 Baker 1 650 2013 Pascua 2 900 2015 Baker 2 350 2018 Pascua 1 430 2017 TOTAL 2,355 o Strategic partner: Colbun (Matte group) o Investment: ~ US$1,500M Transmission ~ US$2,000M Pr
Slide 72: SIEPAC: Energy Integration in Central America
SIEPAC: Energy Integration in Central America LATIN AMERICA Guatemala Honduras NicaraguaEl Salvador Costa Rica Panama o Construction and maintenance of regional transmission system interconnecting the electricity networks of the six countries, known as SIEPAC. EPR is responsible for completing the p
Slide 73: Structure of the sale of Palma de Mallorca real estate assets
RESULTS SUMMARY Structure of the sale of Palma de Mallorca Real Estate assets Phase 1: Endesa receives (euro)240M Endesa (Spain and Portugal) Palma SA Neinver 100%Assets (euro)240 M Bank Mortgage credit 180 M(euro) Phase 2: Endesa invests (euro)27M Neinver 55% 45% Palma SA BOLONIA (euro)27M Transact
Slide 74: Debt structure aligned with needs and business risk
FINANCIAL ANALYSIS Debt structure aligned with needs and business risk Currency hedging Interest rate hedging Currencies Debt (euro)M Interest rates Debt (euro)M 14,308 4,675 18,983 14.308 4.675 18.983 100% 75% 50% 13% 25% 6%25% 6% Euro US$ Chilean Peso Other 62% 90% 69% 13% 10% 25% 8% 21%2% Fixed H
Slide 75: Endesa debt maturities excluding Enersis
FINANCIAL ANALYIS ENDESA debt maturities excluding Enersis Balance of debt maturities: (euro)14,718 M (1) 7,227 (euro)M Bonds Banking debt Notes (2) 3,261 1,201 1,460 2,152 873 1,824 328 802 93 403 110670 10 792 313 600 4,308 2,919 90 2H06 2007 2008 2009 2010 2011 + ENDESA's liquidity excluding Ener
Slide 76: Enersis debt maturities
FINANCIAL ANALYSIS Enersis debt maturities Balance of debt maturities: (euro)5,460M (1) 2,256 Bonds Banking debt (euro)M 857 839 686 571 286 447 375 228 655 184 465 1,791 272 458 103 223 224 2H06 2007 2008 2009 2010 2011 + Enersis' liquidity is (euro)1,227 M ((euro)780 M in cash and (euro) 447M in u
Slide 77: Important information
Important information Investors are urged to read Endesa's Solicitation/Recommendation Statement on Schedule 14D-9 when it is filed with the U.S. Securities and Exchange Commission (the "SEC"), as it will contain important information. The Solicitation/Recommendation Statement and other public filin
Slide 78: 1H 2006 results Endesa's greater value
1H 2006 results Endesa's greater value 25 July 2006 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 25, 2006 By: /s/ Álvaro Pé