Endesa S.a. · BME:ELE

Endesa — Q1 2014 Earnings Presentation

36 slides from Endesa's earnings presentation, May 7, 2014

  1. Slide 1: Endesa 1Q 2014 results

    07 | 05 | 2014 endesa 1Q 2014 results

  2. Slide 2: Business context in 1Q 2014

    consolidated results 1Q 2014 Business context in 1Q 2014 Demand Spain: residential Spain(1) Endesa distribution area(2) +4.6%(3,4) clients (Not adjusted) Latin +6.6%(3) demand +2.2% Industry +8.3% +7.9% America: decrease Services -2.9% healthy growth partially +6.2% +4.9% in both Endesa mitigated by

  3. Slide 3: Latin America: EBITDA negatively impacted by translation currency exchange rates

    consolidated results 1Q 2014 Latin America: EBITDA in Euro negatively impacted by translation currency exchange rates GENERATION DOLLARIZED BUSINESS • Important depreciation of local currencies exchange against euro and dollar • Impact in Chile, Colombia and Peru partially neutralized thanks to doll

  4. Slide 4: Consolidated results 1Q 2014

    consolidated results 1Q 2014 Level of margins in Spain maintained in spite of strong negative regulatory impact. Extremely adverse external circumstances in Latam €M 1Q 2014 1Q 2013(1) Change Revenues 7,523 8,109 -7% Gross margin 2,266 2,518 -10% EBITDA 1,499 1,658 -10% Spain&Portugal 953 958 -1% La

  5. Slide 5: Exceptional effects incorporated in 1Q 2014

    consolidated results 1Q 2014 Exceptional effects incorporated in 1Q 2014 Spain&Portugal (€M) Latam (€M) ~156 ~45 ~117 711 11 700 ~79 971 13 ~89 ~ 75 958 953 ~78 ~ 116 546 ~38 Chg. in Change in accounting One accounting -off Recurrent principles One-off Recurrent principles EBITDA IFRIC 11(1) EBITDA

  6. Slide 6: Spain: regulation update

    consolidated results 1Q 2014 Spain: regulation update  New mechanism based on pool price SCVP(1) new mechanism  By July 1st, 2014 invoices to use the average price calculated by Red Eléctrica for 3 categories of clients (RD 216/2014)  No date fixed for invoicing based on digital meters measuremen

  7. Slide 7: LatAm: regulation update

    consolidated results 1Q 2014 LatAm: regulation update  Gx:  New Government energy policy to be based on 6 pillars: strengthening of the state role, reorganization of land-use, renewables, energy efficiency, increase sector competition, boost interconnection projects  Fiscal reform Bill being disc

  8. Slide 8: LatAm: purchase of additional 1.14% of Edegel from Inkia

    consolidated results 1Q 2014 LatAm: purchase of additional 21.14%(1) of Edegel from Inkia Company description Ownership structure pre-agreement Enersis Southern  Leading generation company in Peru Cone Power 60% Endesa Chile Edegel with 1,668 MWs(2) of installed capacity Perú (Inkia) 61% 39% Genera

  9. Slide 9: LatAm: purchase of additional 50% of GasAtacama

    consolidated results 1Q 2014 LatAm: purchase of additional 50% of GasAtacama GasAtacama  781MW CCGT operating in the SING assets  1,163 km long gas pipeline in northern Chile and gas interconnection with Argentina  Increase economic interest Rationale  Exclusive control and consolidation  Strea

  10. Slide 10: Other relevant events during the period

    consolidated results 1Q 2014 Other relevant events during the period  2 bcm LNG contract with supply starting in 2018 delivered at Cheniere’s New gas Corpus Christi facility supply  20 year contract (with possible extension to 30) linked to H.Hub index contract with Cheniere  Flexibility in desti

  11. Slide 11: Sound financial position

    consolidated results 1Q 2014 Sound financial position Net debt evolution in 1Q 2014 (€M) 1,704 181 720(2) 4,337 1,446 4,395(3) 0.7x 508 169(1) Enersis 2,706 2,456 0.7x 2,348 Pending regulatory assets Includes Includes +€453 M cashed in from settlement +€985 M from 2013 non- 11/2013 (mainly from reve

  12. Slide 12: Spain&Portugal 1Q 2014

    spain&portugal 1Q 2014

  13. Slide 13: Highlights in 1Q 2014

    spain&portugal 1Q 2014 Highlights in 1Q 2014 Margin negatively affected by RDL 9/2013 in both regulated and liberalized businesses partially compensated by exceptional market conditions Output generation (-8%)(1): lower demand and lower thermal gap. 79% of total output from nuclear & hydro (71% in 1

  14. Slide 14: Results negatively affected by regulatory measures partially offset by management actions

    spain&portugal 1Q 2014 Results negatively affected by regulatory measures partially offset by management actions €M 1Q 2014 1Q 2013(1) Change Revenues 5,443 5,732 -5% Gross margin 1,402 1,460 -4% EBITDA 953 958 -1% EBIT(2) 560 498 +12% Net finance expenses 32 49 -35% Net attributable income 350 338

  15. Slide 15: Mainland output and energy management optimization

    spain&portugal 1Q 2014 Mainland output and energy management optimization Decrease in mainland output 1Q 2014 energy management Gross electricity Gross electricity GWh sources sales 13,385 26 TWh 26 TWh 12,354 449 279 CCGT SCVP purchases(1) 6 6 SCVP sales(1) 2,920 -8% 1,985 0.4 Pool sales Imported c

  16. Slide 16: Latin America 1Q 2014

    latin america 1Q 2014

  17. Slide 17: Highlights in 1Q 2014

    latin america 1Q 2014 Highlights in 1Q 2014 4.6%1 growth in LatAm Dx demand: Brazil and Peru outperformance -8.5% drop in Gx output: planned and unplanned outages in thermal plants (Argentina and Chile) in spite of slight hydro recovery Argentina Dx EBITDA: affected by heat wave effects Fx impact: -

  18. Slide 18: EBITDA negatively affected by Fx, worse energy mix and one-offs in Dx

    latin america 1Q 2014 EBITDA negatively affected by Fx, worse energy mix (lower Gx output in Chile) and one-offs in Dx (Argentina) €M 1Q 2014 1Q 2013(1) Change Revenues 2,080 2,377 -12% Gross margin 864 1,058 -18% EBITDA 546 700 -22% EBIT 388 522 -26% Net finance expenses 42 97 -57% Net income 218 2

  19. Slide 19: Chile: results affected by Gx outages, drought and Fx

    latin america 1Q 2014 Chile: results affected by Gx planned and unplanned outages, drought and Fx Generation output Distribution sales(1) GWh -16%  Lower thermal output due to Bocamina II shutdown and CCGT’s planned outages not compensated +4% by marginally higher hydro 4.820 3.272 conditions 4.062

  20. Slide 20: Brazil: EBITDA affected by drought effects in Dx, Coelce tariff revision and FX

    latin america 1Q 2014 Brazil: EBITDA affected by drought effects in Dx, Coelce 3rd tariff revision effects and FX impact partially offset by better Gx results Generation output Distribution sales(1) GWh +8%  Higher hydro volumes from Cachoeira 5.150  Higher Dx volumes due to weather +11% 4.774 con

  21. Slide 21: Colombia: good operating performance more than compensated by Fx

    latin america 1Q 2014 Colombia: good operating performance more than compensated by Fx Generation output Distribution sales(1) GWh -1%  Increase in hydro generation does not compensate decrease in +3% thermal dispatch 3.018 2.974  Urban areas demand increase lower 1.986 1.931 than in the country 1

  22. Slide 22: Peru: stable results

    latin america 1Q 2014 Peru: stable results Generation output Distribution sales(1) GWh -3%  Hydro output decrease due to Chimay unavailability, partially +4% offset by higher thermal dispatch 2.220  Higher volumes due to seasonal 2.159 1.625 1.695 effect and better performance of industrial and co

  23. Slide 23: Argentina: EBITDA negatively impacted by extraordinary heat wave

    latin america 1Q 2014 Argentina: EBITDA negatively impacted by effects from extraordinary heat wave. Pending MMC recognition in Dx Generation output Distribution sales(1) GWh -14% +2%  Slight hydro recovery not able to offset thermal output decrease due 3.692 3.949 3.379 3.603 to unplanned outages

  24. Slide 24: Final remarks 1Q 2014

    final remarks 1Q 2014

  25. Slide 25: Final remarks

    final remarks 1Q 2014 Final remarks Solid results with margins in line with 1Q 2013 in spite of negative regulatory impact and with low demand and prices Spain & Portugal Results due to effective managerial actions and high hydro production Operating margins negatively impacted by local currencies t

  26. Slide 26: Appendices 1Q 2014

    appendices 1Q 2014

  27. Slide 27: Net installed capacity and output

    appendices 1Q 2014 Net installed capacity and output(1) Latin MW at 31/03/14 Spain&Portugal America Total Total 21,673 15,645 37,318 Hydro 4,679 8,696 13,375 Nuclear - Installed 3,318 3,318 net Coal 5,306 836 6,142 capacity Natural gas 5,445 3,486 8,931 Oil-gas 2,925 2,540 5,465 CHP/Renewables na 87

  28. Slide 28: Latin America: generation and distribution figures

    appendices 1Q 2014 Latin America: generation and distribution figures Generation Output Distribution Sales(1) GWh GWh +4.6% 15,795 15,253 15,093 13,957 3,692 +2% 3,949 -8.5% 3,603 -14% Argentina 3,379 1,246 +11% 1,383 Brazil 5,150 4,775 +8% 4,820 4,062 -16% Chile 3,160 3,272 +4% Colombia 3,018 2,974

  29. Slide 29: Latin America: EBITDA break down by country and business nature

    appendices 1Q 2014 Latin America: Ebitda break down by country and business nature Ebitda Generation(1) Ebitda Distribution €M €M 364 325 Argentina 13 325 214 50 142 19 +46% -11% -34% -29% Brazil 101 72 +44% 88 67 -27% -53% 49 41 Chile -5% 110 105 150 130 -13% Colombia 36 37 +3% -30 63 63 -78 -160%

  30. Slide 30: Endesa (excl. Enersis): financial debt maturity calendar

    appendices 1Q 2014 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 31 March 2014: €2,753 M(1) Bonds Bank debt and others ECPs and domestic commercial paper (2) Endesa's 890 699 liquidity 656 excl. Enersis 96 covers 31 646 months of 511 200 242 603

  31. Slide 31: Enersis: financial debt maturity calendar

    appendices 1Q 2014 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 31 March 2014: €4,388 M(1) Bonds Bank debt and others 1,891 Enersis has 225 sufficient liquidity to cover 487 552 517 498 443 1,666 39 months 230 124 156 153 of debt 390 97 322 393 342 290 maturit

  32. Slide 32: Financial policy and net debt structure

    appendices 1Q 2014 Financial policy and net debt structure Structure of Endesa's net debt ex-Enersis Enersis net debt structure €M €M 2,456 2,456 1,939 1,939 Floating 33% Other 54% Floating 71% Euro 101% Fixed 67% US$ 46% Fixed 29% USD -1% By interest rate By currency By interest rate By currency Av

  33. Slide 33: Well on track on forward sales strategy

    appendices 1Q 2014 Well on track on forward sales strategy Spain & Portugal Latin America (% estimated mainland output hedged) (% estimated output hedged) 100% ~75% Contracting level in 71% Latin America that optimizes margin and risk exposure 19% 2014 2015 2014 2015 54% of the generation sold via C

  34. 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

  35. Slide 35: Consolidated results 1Q 2014

    consolidated results 1Q 2014 35

  36. Slide 36: Endesa Mobile

    consolidated results 1Q 2014 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 36

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