Slide 1: Endesa 9M 2015 Results
Endesa 9M 2015 Results Madrid, 11 November 2015
Slide 2: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 9M 2015 Results Madrid, 11 November 2015 2
Slide 3: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 9M 2015 Results Madrid, 11 November 2015 3
Slide 4: Highlights
Highlights EBITDA (+11%) and Net income from continued operations (+63%) positive evolution Regulated business positive evolution driven by non-mainland generation Liberalized business margin (-2%) outperforming expectations 9% production increase due to higher thermal output (+23%) (1) Decrease in
Slide 5: Key financial figures
Key financial figures €M 9M 2015 9M 2014 Change EBITDA 2,752 2,469 +11% Net income from continued operations 1,209 743 +63% Net attributable income 1,206 1,208(1) 0% 9M 2015 FY 2014 Change €M Net debt 5,095 5,420 -6% Strong free cash flow generation 9M 2015 Results (1) Positively affected by €228 M
Slide 6: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 9M 2015 Results Madrid, 11 November 2015 6
Slide 7: Market context in 9M 2015
Market context in 9M 2015 Demand Electricity wholesale prices Weighted average pool prices Spain(3) (€/MWh) Spain(1) Endesa distribution area(2) (Not adjusted) +3.9% 52 51 +32% Industry +2.4% +2.5% 39 +1.8% Services +2.9% +1.1% Residential +6.1% 9M 2014 9M 2015 2015 e Adjusted for weather and workin
Slide 8: Regulatory update
Regulatory update Latest regulatory news (I) CNMC non-binding report assessing Industry Ministry proposal on standard values for investment and O&M available Distribution Ministerial Order expected by year end Endesa estimates neutral impact Domestic coal: CNMC released a report on the 3rd
Slide 9: Regulatory update
Regulatory update Latest regulatory news (II) and CNMC settlements Started on 1st October 2015 SCVP tariff 50% of Endesa’s customers already have their smart meters installed and hourly billing connected. We are on track with the deadline of 2018 M.O. 2182/2015 Social bonus tariff represents 2
Slide 10: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 9M 2015 Results Madrid, 11 November 2015 10
Slide 11: Financial results
Financial results €M • P&L positive evolution: (+) Other Operating Results (CO2 transaction), €162 M provision booked in 2Q ‘14 & recognition in 2015 of Law 15/2012 taxes in non-mainland Gx, fixed costs reduction and lower D&A (-) Normalization of weather conditions and exceptionally good result
Slide 12: Net debt analysis
Net debt analysis Net debt evolution Net debt (1) / 1.8x 1.5x(2) EBITDA ratio €M 5,420 Regulatory 5,095 working capital 21 1,173 676 Regulatory 1,693 805 working capital 584 • Year 2014: +€21 M cashed in from settlements 10- 5.075 12/2014 (interests from 2013 tariff deficit) 4.311 3.727 3.727 FY 201
Slide 13: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 9M 2015 Results Madrid, 11 November 2015 13
Slide 14: 9M 2015 EBITDA breakdown
9M 2015 EBITDA breakdown 9M 2014 9M 2015 % €M Change (%) €M % Generation & 45% 1,101 +1% 1,116 41% Generation & Supply Supply Distribution 53% 1,314 +1% 1,323 48% Distribution Non-mainland Gx 2% 54 313 11% Non-mainland Gx +480% 1 1 TOTAL(1) 2,469 +11% 2,752 TOTAL(1) 9M 2015 Results (1) Corporate Str
Slide 15: Regulated business
Regulated business Gross margin evolution of non-mainland Gx and Dx +14% 2,320 €M 36 2,027 257 Non- 513 mainland Non- 256 generation mainland generation 2,284 Distribution 2,027 Distribution 1,771 1,807 Margen 9M 2014 Non-mainland Dx Margen 9M 2015 9M 2014 Non-mainland Gx Distribution 9M 2015 Gross
Slide 16: Liberalized business
Liberalized business Gross margin evolution 1,938 -2% 1,890 €M -48 9M 2014 9M 2015 Gross margin(1) Gross margin(1) Higher fuel costs (higher thermal gap) and higher energy purchase cost Higher underlying selling price and better net position in ancillary services Gas Business CO2 swap transa
Slide 17: Fixed costs evolution
Fixed costs evolution -3% €M -7% 1,496 1,533 1,458 37 (1) 1,432 26 (2) Personnel 695 730 689 Costs -9% 663 1580 1508 O&M Costs -5% 885 885 845 845 Capitalized costs -84 -82 -76 -76 9M 2014 9M 2014 9M 2015 9M 2015 Reported Adjusted Adjusted Reported • 3% decrease in reported fixed costs • Adjusted by
Slide 18: Liberalized business
Liberalized business Energy management Mainland output (GWh) 9M 2015 energy management Electricity sources Electricity sales 46,564 75.5 TWh 75.5 TWh +9% 42,570 2,778 CCGT 1,020 SCVP purchases(1) 13 13 SCVP sales(1) 11,508 Imported coal 9,563 Energy purchases 16 Unit purchase cost 6,270 6,510 Domest
Slide 19: Agenda
Agenda 1. Highlights and key financial figures 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 9M 2015 Results Madrid, 11 November 2015
Slide 20: Final remarks
Final remarks 9M 2015 Results Madrid, 11 November 2015 20
Slide 21: Appendix
Appendix Endesa 9M 2015 Results 9M 2015 Results Madrid, 11 November 2015
Slide 22: Installed capacity and output
Installed capacity and output(1) GW at 30/09/15 GWh 9M 2015 (and chg. vs. 30/09/14) Installed capacity(2) (and chg. vs. 9M 2014) Output(3) Total 21.2 -2% 55,890 +8.1% Hydro 4.7 +1% 6,009 -16% Nuclear 3.3 0% 19,760 +6% Coal 5.3 0% 19,596 +11% Natural gas 5.4 0% 5,571 +50% Oil-gas 2.4 -17% 4,954 +6% (
Slide 23: Endesa: financial debt maturity calendar
Endesa: financial debt maturity calendar Gross balance of maturities outstanding at 30 September 2015: €5,323 M(1) Bonds Bank debt and others ECPs and domestic commercial paper (2) 3,874 3,842 Endesa's liquidity 783 covers 32 months of debt 257 783 maturities 202 80 124 83 145 162 68 88 57 15 36 15
Slide 24: Gross debt structure
Gross debt structure as of September 30th 2015 Structure of Endesa's gross debt €M 5,336 5,336 Floating 34% Euro 100% Fixed 66% US$ 40% By interest rate By currency Average cost of debt 2.8% 9M 2015 Results Madrid, 11 November 2015 24
Slide 25: This document is the property of ENDESA and therefore must not be disseminated
“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 26: 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 27: 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 2015 Results Madrid, 11 November 2015 27