Slide 1: Endesa 9M 2017 Results
Endesa 9M 2017 Results 07/11/2017
Slide 2: Agenda
1. Highlights and key financial figures 2. Endesa’s performance in 9M 2017 market context 3. Financial results 4. Final remarks 9M 2017 Results- Madrid, 7 Nov 2017 2
Slide 3: Agenda
1. Highlights and key financial figures 2. Endesa’s performance in 9M 2017 market context 3. Financial results 4. Final remarks 9M 2017 Results- Madrid, 7 Nov 2017 3
Slide 4: Highlights: stable regulated business, 3Q results in line
Stable contribution from the regulated business 3Q results in line with expectations 2015-2016 social bonus positive execution sentence EGPE awarded with 879 MWs in the 2017 RW capacity auctions Fixed costs reduction -3% (1) (1) Includes workforce restructuring plans and contract suspension agreemen
Slide 5: Key financial figures
Key financial figures €M 9M 2017 9M 2016 Change Like-for-like (1) EBITDA 2,548 2,869 -11% -15% Net attributable income (2) 1,085 1,305 -17% -18% Cash flow from operations (CFO) 1,375 2,554 -46% 30.09.2017 31.12.2016 Change Net financial debt 5,753 4,938 +17% 3Q 17 results in line with expectations
Slide 6: Agenda
1. Highlights and key financial figures 2. Endesa’s performance in 9M 2017market context 3. Financial results 4. Final remarks 9M 2017 Results- Madrid, 7 Nov 2017 6
Slide 7: Market context in 9M 2017
Market context in 9M 2017 Demand Electricity wholesale prices Average pool prices Spain (€/MWh) Spain(1) Endesa distribution area(2) +48% (Not adjusted) 2.0% 1.7% Industry +3,1% 50.3 1.0% 0.5% Services +1.0% 34.0 Residential +1.4% 9M 2016 9M 2017 Thermal Gap(3) 37.1 TWh 52,2 TWh Adjusted for weather
Slide 8: Energy management
Endesa’s performance in 9M 2017 market context Energy management Output(1) (GWh) Electricity sales(1) (GWh) +3% +16% 58,241 76,004 77,907 50,406 2,533 11,489 12,319 506 9,821 Unitary integrated 5,465 6,075 9,449 margin: 13,768 14,016 14,245 +52% 21,722 €20.4/MWh 10,171 10,433 (-12% vs. 9M 2016) Hydr
Slide 9: Renewables auctions
Endesa’s performance in 9M 2017 market context Renewables auctions 2017 RW auctions: 8,037MW awarded: May 2017 Auction July 2017 Auction Wind: 4,108 MW PV: 3,910 MW 3,000 MW, mostly wind 5,037 MW, mostly PV (3,909 MW) Capacity to come on stream before Dec. 2019 Endesa: 540 MW of
Slide 10: Agenda
1. Highlights and key financial figures 2. Endesa’s performance in 9M 2017market context 3. Financial results 4. Final remarks 9M 2017 Results- Madrid, 7 Nov 2017 10
Slide 11: Financial results
Financial results €M 9M 2017 9M 2016 Change Like-f-like Revenues 14,824 14,107 5% Gross Margin 4,006 4,338 -8% (1) EBITDA 2,548 2,869 -11% -15% EBIT 1,476 1,811 -18% Net Financial Results (94) (158) 41% Share of profit from associates 18 (35) 151% Income tax (302) (296) 2% (2) Net attributable incom
Slide 12: 9M 2017 EBITDA breakdown
9M 2017 EBITDA breakdown 9M 2016 9M 2017 % €M Change (%) €M % EGPE: 24 EGPE: 124 Generation & Supply(1) 31% Generation & Supply(1) 40% 1,160 -31% 800 Non-mainland Gx Non-mainland Gx 14% 11% 309 +17% 360 Distribution Distribution 49% 1,400 -1% 1,388 55% TOTAL 2,869 -11% 2,548 TOTAL 9M 2017 Results- M
Slide 13: Regulated business
Regulated business Gross margin evolution +1% €M 2,322 56 2,348 Non-mainland generation(1) -30 482 538 Distribution 1,840 1,810 (1) 9M 2016 Dx Non-mainland Gx 9M 2017 Stable regulated gross margin with non-mainland Gx benefitting from previous years’ positive settlements 9M 2017 Results- Madrid, 7
Slide 14: Liberalized business
Liberalized business(1) Gross margin evolution -18% €M 2,016 1,658 -138 - 90 -130 Electricity + Gas (underlying)(2) Gas (MtM&Others) 9M 2016 Others 9M 2017 Lower integrated unitary margin in the liberalized electricity business EGPE contribution (+€152 M) Gas business 2015-2016 Social Bonus
Slide 15: Liberalized business: 9M 2017 energy management
Liberalized business 9M 2017 energy management Energy (TWh) Unitary values breakdown (€/MWh) Sales 63.7 66.4 Unitary revenue 59.4 60.1 Energy 18.0 purchases 23.2 Unitary variable cost(1) 36.2 39.7 EGPE: 2.5 Mainland 48.4 output 40.5 17.8 ex -12% EGPE Unitary margin 23.2 20.4 9M 2016 9M 2017 9M 2016
Slide 16: Fixed costs evolution
Fixed costs evolution -1% €M -3% (1) 1,469 1,447 1,458 22 1,408 50 690 677 673 Personnel 675 ~0% costs +4% 933 O&M costs 859 850 881 Capitalized costs -80 -80 -148 -148 9M 2016 9M 2016 9M 2017 9M 2017 Reported Adjusted Adjusted Reported 3% adjusted fixed costs reduction driven by efficiency measur
Slide 17: From EBITDA to Net Income
From EBITDA to Net Income €M 1,072 94 12 2,548 302 7 1,476 1,394 1,085 EBITDA Depreciation EBIT Net Financial Associates and Profit before Taxes Minorities Net attributable and Results Others taxes Income amortization 11% 9M 2016 2,869 -1,058 1,811 -158 -51 1,602 -296 -1 1,305 Change (%) -11% +1% -1
Slide 18: Net financial debt analysis
Net financial debt analysis Net financial debt evolution Net debt / (2) 1.4x 1.8x EBITDA ratio 5,753 €M 588 Regulatory working 4,938 capital(3) 1,411 1,375 779 4,961 5,165 -23 FY 2016 Cash flow Capex(1)(€730 M€) Dividends 9M 2017 Regulatory working + Others capital(3) Net debt increase due to norm
Slide 19: Agenda
1. Highlights and key financial figures 2. Endesa’s performance in 1Q 2017 market context 3. Financial results 4. Final remarks 19
Slide 20: Final remarks: 2017 gross DPS floor of €1.32
Stable and visible contribution from the regulated business Liberalized business positively impacted by social bonus execution sentence EGPE key strategic contribution supports business development (879MW awarded) º Fixed costs reduction as a result of the already implemented efficiency plans On tra
Slide 21: Appendix
Appendix Endesa 9M 2017Results 21
Slide 22: Installed capacity and output
Installed capacity and output Mainland output(1) (GWh) Total output (GWh) GWh 9M 2017 (and chg. vs. 9M 2016) (1) Total Output +18% 48,332 Total 58,241 16% 40,916 2,445 Hydro 4,198 -33% 465 5,852 2,445 Nuclear 19,967 0% 8,790 10,683 Coal 17,918 33% 3,010 Natural gas 8,326 64% 5,187 Oil-gas 5,299 4% R
Slide 23: Financial debt maturity calendar
Endesa: financial debt maturity calendar Gross balance of maturities outstanding at 30 September 2017: €6,175 M(1) Loans and borrowings Other borrowings Bonds and other marketable securities (2) 4,215 39 744 Endesa's 1,638 liquidity covers 3,432 29 months of 1,200 debt maturities 6 89 104 129 432 4Q
Slide 24: Gross financial debt structure
Gross financial debt structure as of September 30th 2017 Structure of Endesa's gross debt €M 6,188 6,188 Floating 41% Euro 100% Fixed 59% By interest rate By currency Average cost of debt 2.2% 9M 2017 Results- Madrid, 7 Nov 2017 24
Slide 25: Approval of new Social Tariff mechanism
Approval of new Social Tariff mechanism Main features (1) Large families Pensioners Vulnerable customer (3 types) according to income levels Beneficiaries • Vulnerable customer • Severe vulnerable customer • Customer at risk of social exclusion 25% to 40% bonus on tariff (100% at risk of exc
Slide 26: Glossary of terms (I/II)
Glossary of terms (I/II) Reference note (#) of Consolidated Item Calculation Management Report (Cost of gross financial debt) / gross average financial debt: €99 M x (365/273) / €6,088 M = Average cost of debt (%) 4.1 2.2% (Principal x number of days of term) / (Principal in force at the end of the
Slide 27: Glossary of terms (II/II)
Glossary of terms (II/II) Reference note (#) of Consolidated Item Calculation Management Report Long and short term financial debt (€4,481M + €1,707M) - Cash and cash equivalents (€427M) Net financial debt (€M) 4.1 – Derivatives recognized as financial assets (€8M) = €5,753 M Net financial results (
Slide 28: 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