Slide 1: Endesa 2005 Results: stronger business, greater value
Endesa 2005 Results Endesa: stronger business, greater value 18 January 2006
Slide 2: Endesa: stronger business, greater value
Endesa: stronger business, greater value Excellent 2005 results Outstanding prospects for 2006 Trend clearly exceeding 2009 targets Reaffirming Endesa's greater value
Slide 3: Excellent 2005 results
Excellent 2005 results €M 2004 2005 Change Sales 13,590 17,508 +30% Gross Margin 7,373 9,126 +24% EBITDA 4,521 6,020 +33% EBIT 2,846 4,244 +49% Net financial expenses -1,087 -1,257 +16% Net income (ex. asset disposals) 1,149 1,841 +60% Net income 1,253 3,182 +154% 01.01.05 31.12.05 Change Financial
Slide 4: Strong growth in all businesses
EI y 7 Strong growth in all businesses = endesa EBITDA: €6,020M EBIT: €4,244M +33% @) +49% @) Spain and Latam Spain and Portugal +31% Portugal +32% é +58% Net Income: €3,182M +154% @) Spain and Portugal Auna and +53% others N.A. 36% f Latam yo +106% 8% Europe +151% e
Slide 5: 2005 results exceed targets
EI y os 2005 results exceed targets = endesa EBITDA Net Income 2005 vs. 2004 (%) 2005 vs. 2004 (%) 2004-2009 announced a: 10-11% (CAGR) Dy >12% (CAGR) target i 2005 forecast 27% Ls 35%! - >100% (16 Nov. 05) [ e1s41m‘-€3,182m | 2 Auna disposal included 2 Without including disposals 4
Slide 6: Sustainable growth in each quarter of 2005
EI y a Sustainable growth in each quarter of 2005 = Quarterly EBITDA in 2005 (€M) 1,575 1,621 Average 05 1,486 e 1,505 . [333° = Pas Pat == @) +33% ey 7 i ~ “Average 04 1,130 Ql Q2 Q3 Q4
Slide 7: Progress in Efficiency plan above committed target
EI y a Progress in Efficiency plan above committed target = endesa 2005 EBITDA improvement due to Efficiency plan €M 56 2 181 o i Spain and Portugal Europe Latin America Total Efficiency plan Target 320 140 65 525 2004-2009 (€M) % of target achieved 38% 40% 3% 34%
Slide 8: Non-strategic asset disposals in excess of €3,000M
Non-strategic asset disposals in excess of €3,000M endesa in 2005 Disposals eM 3,184 303 122 130 | 408 a Net capital gains of €1,341 M Auna sSmartcom RealEstate Sidec + Lydec Others Total Assets Note: Does not include sale of 5.01% of AUNA (€378 M cashed in 2005) to be accounted for in Qt 2006
Slide 9: 2005 Dividend: €2.4/share
ay 2005 Dividend: €2.4/share endesa 100% i o copltal dividend gains x3.3 €/share 1.2666 2.4000 B Complementary al dividend 1.1334 0.7382 _ Interim dividend 2004 Ordinary Disposals 2005 total dividend business 2005 dividend First year dividend of €2,541M out of more than €7 bn committment Note: Divid
Slide 10: Spain and Portugal
= endesa — Spain and Portugal
Slide 11: Strong growth in results
Strong growth in results €M 2004 2005 Change Sales 6,648 8,761 +32% Gross margin 4,352 5,202 +20% EBITDA 2,472 3,266 +32% EBIT 1,432 2,264 +58% Net financial expenses -501 -602 +20% Net Income 888 1,358 +53%
Slide 12: Spain and Portugal 2005 Highlights
a = SPAIN-AND PORTUGAL : 2005 Highlights endesa — Industry trends = Strong growth in demand (+4.6%) = High pool prices (€61.7/MWh) (Endesa’s strength > = Regulatory improvements: - Total recognition of 2005 tariff deficit - Increased islands remuneration = Strong recurring growth: - Competitive mix
Slide 13: Recurring EBITDA Growth
ay endesa Recurring EBITDA Growth* (€M) + Islands deficit 2001-04 2472 Generation + Supply 1,571 901 889 Distribution r T 1 2004 2005 * Total EBITDA growth of +32% SS >7"Emn sate Strong recurring growth Very competitive mainland fuel cost Margin stability despite hydro seasonality High growth in the
Slide 14: Mainland fuel cost
e mainland fuel cost Endesa Rest of Sector (e) €/MWh €/MWh = More competitive generation portfolio than rest of sector in varying hydro conditions (2004 and 2005) = Less affected by volatility in raw materials markets 13 Note: Mainland ordinary regime fuel cost
Slide 15: Stable output despite hydro seasonality
( 2a ¥ 7 Stable output despite hydro seasonality endesa Endesa mainland generation (GWh) 82,528 -3% ©) 79,811 1 = Unusual circumstances: - Unavailability of Vandellés (2,600 GWh) - Conversion of As Pontes Group 4 (700 GWh) = Importance of coal to ensure supply = 20% growth in Renewables/CHP 14
Slide 16: Strong growth in the gas business
SPAIN AND PORTUGAL ay endesa Zz Strong growth in the gas business 2004-2005 Growth (%) Distribution 8,197 GWh Liberalised market +58% @) 18,558 GWh Generation consumption 22,222 GWh Procurement +58% @ 3.6 bem = Very strong growth in all businesses = Endesa achieved a 12% market share in consumption,
Slide 17: 60x5 Efficiency plan exceeds 2005 targets
SPAIN AND PORTUGAL 60x5 Efficiency plan exceeds 2005 targets endesa Fixed Costs (€M) Fixed Costs (€M) Quarterly evolution 2005 vs. 2004 Total year 2005 vs. 2004 +0,8%0 2,075 [extraordinary 13% Ee 1 nr igeiaaeaeaes | provisions! -4% . [| Excluding 10% extraordinary provisions! 1Q05 2Q05 3Q05 4Q05 200
Slide 18: Progress in Capacity plan
¥ P endesa rogress in Capacity plan As Pontes conversion to imported coal Group 4 came into operation in 2005 Completion of the conversion expected by 2008 2006: Commissioning of Colén CCGT plant (400 MW) Progress in the construction of 2007: Commissioning of As Pontes CCGT plant (800 MW) 2008: Besd
Slide 19: Favourable tariff regulation for 2006
EQ 2 ¥ 7 Favourable tariff re n for 2006 endesa January 2006 June 2006 = 4.48% nominal increase = Additional increase of 1.5%-2% = Total effect of 6% (lower nuclear expected 2006 tariff moratorium and others) = Income increase higher than 10% (includes increase in demand) = Full tariff deficit recog
Slide 20: Outstanding prospects for 2006
EM 2 ¥ = Outstanding prospects for 2006 EBITDA (€M) = 2004-2009 CAGR 10- o-- -» 4,200 = Efficiency improvements: €200M accumulated in 2006 <i 3,620 3,266 DB = Capacity plan: - CCGT: 400 MW - Renewables: 395 MW - Islands: 580 MW = Atypical production constraints disappear (Vandellés) = Regulatory imp
Slide 21: Europe
2005 Results i as ae =" endesa —ae Europe
Slide 22: Excellent results underscore strength of European business
Excellent results underscore strength of European business €M 2004 2005 Change Sales 2,557 3,598 +41% Gross margin 830 1,223 +47% EBITDA 535 887 +66% EBIT 370 618 +67% Net financial expenses -63 -63 +0% Net income (ex. asset disposals)1 169 257 +52% Net Income 169 425 +151% 1 Also excludes €107M ref
Slide 23: Europe 2005 Highlights
endesa 2005 Highlights Italy = Increase in installed capacity and generation = Unit margin increase due to efficiency improvement and production mix cr ~\ France + Roll-out of Efficiency plan * Increased unit margin due to market risk management * Disposal of non-strategic assets (Sidec) Morocco = C
Slide 24: Endesa Italia EBITDA and Net Income
EBITDA (€M) +36% 694 | i 2004 2005 = Endesa Italia: Str Net Income (€M) 2004 2005 = Generation, sales and margin increase = Recognition of €169M of stranded costs (€33M accounted in 2005) = Recognition of €20M of stranded costs of Nigerian gas +43% increase excluding €134M aang ng increase in EBITDA
Slide 25: Italy: Increase in installed capacity and output
EI y 4 Italy: Increase in installed capacity and output = endesa Output (GWh) +12% 55.563 20,865 —-O" 30% 50% aoe? Capacity “o +4% ped J Energy sales (GWh) \" 115% @) Coal Sales margin 31% (€/MWh) } Fuel Gas +6% A) 2004 2005 = Completion of Ostiglia and Tavazzano repowering (2,400 MW CCGT on stream)
Slide 26: Italy: sustaining margins despite declining prices
EI y 4 Italy: sustaining margins despite declinig prices = endesa ~ ( Efficiency plan = €16M of the efficiency plan already achieved in 2005 = we ™ Growth in renewables = Wind projects portfolio of 700 MW - 20 MW operating L - 316 MW committed (136 MW will be operating by mid-2006) y /.NG regasifica
Slide 27: France: growth based on operating improvements
EI y ~ France: growth based on operating improvements = endesa EBITDA (€M) = Market risk management (EdF contracts) +21% . 179 and unit margin improvement (+7%) [yy = Implementation of Efficiency plan 148 - Reduction of O&M costs: -23% - Reduction of fixed costs: -€26M - Reduction of Employee/MW rat
Slide 28: Poland: final proceedings for Dolna Odra
EI y J Poland: final proceedings for Dolna Odra = endesa f° process: > = Agreement achieved with Polish Government * Brussels authorisation obtained = Pending agreement with labour unions \X (— Targets: a dss = Return > 12 % = Double EBITDA by 2009 = Accreative from outset 2?
Slide 29: Energy management: €46M EBITDA and additional savings
EI y 3 Energy management: €46M EBITDA and = endesa additional savings ‘id Management of interconnections - Assigned 35% of total auctioned capacity in the France-Italy interconnection in 2005 (RTE) - Other interconnections: Italy- EBITDA Endesa Trading: €46M Slovenia X pS i . Supply to customers: “A
Slide 30: Europe: Outstanding prospects for 2006
E! ‘ = Outstanding prospects for 2006 = endesa EBITDA (€M) 2004-2009 CAGR 13-15% ae a 417% , 1,040 887 @) Poland = Poland included: €80m +66%," = Growth in renewables: 100 MW = Efficiency plan: Achieving 2009 target by 2007 ~ 2004 2005 2006 2009 Estimate Trend clearly exceeding 2009 targets 29
Slide 31: Latin America
2005 Results : ae a endesa — Latin America
Slide 32: Strong growth in results
Strong growth in results €M 2004 2005 Change Sales 4,297 5,149 +20% Gross margin 2,180 2,698 +24% EBITDA 1,522 1,878 +23% EBIT 1,054 1,376 +31% Net financial expenses -453 -540 +19%1 Net Income before minorities 431 710 +65% Net Income 127 262 +106%
Slide 33: Latin America 2005 Highlights
YY, ——— = : 2005 Highlights endesa — Favourable environment * Widespread growth in production (+5.1%) and sales (+5.6%) * General recovery in currency values Earnings growth = EBITDA increases across businesses and countries = Unit margins improved: - Capturing regulatory improvements - Improving en
Slide 34: Improvement in unit margins
LATIN AMERICA ay endesa Improvement in unit margins Generation margin USD/MWh VAD distribution USD/MWh 2004-2009 +4.5% CAGR +2.6% CAGR Strategic plan 30.3 —~ 0, +28.9%.. 49.9% aay /o 19.2 | Oy “ 23.5 ; ® 2004 2005 2004 2005 * Capturing regulatory improvements: - Increase in node prices in Chile; tar
Slide 35: Progress in key subsidiary restructurings
LATIN AMERICA Progress in key subsidiary restructurings Endesa Brasil Before Current Endesa Chilectra Endesa | Enersi cnee Ns 100% 5% lio7%|as7edeaed sized || bsow [asord _oa5% ampist |] EPRercesoman © @CDSA 15.6% 37.6% = 4.6 million customers 10.4% 26.4% _| |p = 997 MW of installed capacity Investl
Slide 36: Cash returns to Spain in line with targets
Cash returns to Spain in line with targets 2004 2005 US$ M US$ M Strategic plan 2004-2009 Dividends and interests received 46 86 750 Capital reductions 221 195(1) 250 Disposals 8 27(2) Total 275 308(3) 1,000 1 Includes income from Elesur of USD41M 2 Sale of CEPM for USD 24 M and EEB share buyback fo
Slide 37: Latin America: Outstanding prospects for 2006
FE wa EATIN AMERICA ‘ — Outstanding prospects for 2006 endesa EBITDA (€M) 2004-2009 CAGR 1 oe 10% _2,065 = Demand growth +23%,. 2 F 7 ee = Price evolution 1,522 @ = Generation-Distribution tariffs in Argentina = New capacity in Peru (61 MW) 2004 2005 2006 2009 Estimate Trend clearly exceeding 2009 t
Slide 38: Financial Analysis
2005 Results ae ae a endesa =— Financial Analysis
Slide 39: Positive Cash Flow in all businesses
[ wa FINANCIAL ANALYSIS: ‘ = Positive Cash Flow in all businesses endesa Cash Flow Capex Cash Flow Capex Cash Flow Capex fi D4 i Spain and Portugal Europe Latin America Free Cash Flow before dividends: € 2.644M Total financial investments of €298M 38
Slide 40: Debt reduction despite financing of tariff deficit
| | FINANGCIAL-ANALYSIS: ‘ f ~ Debt reduction despite financing of tariff deficit By By cM 2,2 % Company Business 18008 -+ 18,281 18,281 cnersis an 209 oom 1,184 . . 970 5,207 Latin # 6,109 a Lis ue America E. Italia [emery] me 5) Europe Spain, Portugal 13,324 12,259 and other 10,886 Spain and Portu
Slide 41: Stable cost of debt
. = Stable cost of debt inar endesa Key aspects Stable average cost of debt Average life: 5.4 years Net debt/EBITDA: 3.1x Fixed-hedged/Total debt=89% Endesa’s liquidity in: - Spain: €6,338M - Enersis: €863M ing interest rate environment Cost of debt -* Endesa ex-Enersis -@ Total cost wt Enersis 9.37
Slide 42: Conclusion: excellent 2005 results
Conclusion: excellent 2005 results Annual Commitment to 2009 2005 Achieved EBITDA growth: +10-11% +33% ü Net Income growth: >12% 60-154% ü Growth in dividend from ordinary activities: >=12% 54% ü Dividend from disposals: 100% capital gains 1,341 M€ ü Financial Leverage: <1,4x 1.1x ü First year divid
Slide 43: EBITDA: Outstanding prospects for 2006
EI y a EBITDA: Outstanding prospects for 2006 = endesa 2004-2009 CAGR: 10-11% 7,500 2004 2005 2006 2009 Estimate Trend clearly exceeding 2009 targets 42
Slide 44: Net Income: Outstanding prospects for 2006
EI y J Net Income: Outstanding prospects for 2006 = endesa 3,182 2,400 B 2,200 1,253 2004 2005 2006 2009 Estimate Trend clearly exceeding 2009 targets 43
Slide 45: Endesa: greater value
EI y = Endesa: greater value = endesa EBITDA Endesa (M€) + and on 2006 growth prospects Consensus outdated on 2005 results ... 410% L--# +6% aS 7" BES 5,467 4,521 2004 2005 2006 44
Slide 46: Endesa is already a global leader
Endesa is already a global leader: -#1 in Spain -#3 in Italy and France -#1 in Latin America °o Excellent 2005 results and 2006 prospects °o Trend clearly exceeding 2009 targets °o Committed management team ° Maximum priority on shareholder returns Endesa: stronger business, greater value 45
Slide 47: 2005 Results
2005 Results —— ae —— endesa
Slide 48: Diversified portfolio provides steady growth
ESC iw ‘ = Diversified portfolio provides steady growth endesa operating indicators Generation (TWh) Sales (TWh) +5% A) +12% A) 185.3 175.8 203.3 Latin . : 57.9 America 18a-2 : | Latin 55 i : 15.1% © 55.2 America eee 523 | 45.6% @ 25,0. 33.8 Europe Europe +34.7%@) 47.2 +46.8% iy Spain & Spain & 95.7
Slide 49: Thermal production diminishes impact of hydro output fall
SPAIN-AND-PORTUGAL Thermal production diminishes impact endesa of hydro output fall Endesa mainland ordinary Rest of industry ordinary regime regime generation (GWh) electricity generation (GWh) +7.7% @) 126,039 -3.8% ©) 117,064 6,047 3,962 Unit fuel costs €/MWh (*) 13.0 16.4 14.5 (e) 21.4 (e) * Unu
Slide 50: Endesa vs. Rest of industry: generation profile
Ln . id » Endesa vs. Rest of ustry. Generation profile endesa provides lower variable costs Rest of industry (e) Endesa (€21.4/MWh) 65 €16.4/MWh *] Year 2005 (16.8/ Bwh) oil / Gas Oil / Gas CCGT Domestic Coal CcCGT Imported Coal Unitary fuel cost 2005 (€/MWh) \ Domestic Coal Imported Coal Hydro Nucl
Slide 51: Highly competitive mainland fuel costs
ty ea s A Highly competitive mainland fuel costs endesa Breakdown of mainland unit fuel Breakdown of fuel cost costs increases (€M) €/MWh 2004 2005 Change Nuclear 3.5 3.5 1.7% 66 1,242 “ i 156 30.42 15.7% “~ 1,020 Higher Domestic coal () Increase in ‘Etmal a raw Imported coal iaterial prices Thermal
Slide 52: New pricing environment generates tariff deficits
SPAIN-AND-PORTUGAL New pricing enviroment generates tariff endesa deficits GWh/month €/MWh Tariff Deficit Tariff Deficit 2002 2005 25,000 + 80 70 20,000 Deficit 80 generated 15.000 28 = ile 40 £36.0 Expected 10.000 a /MWh scenari lob 5000 i No Deficit § 10 generated 5 inl lini ltt PLLI HHH HAPS Har
Slide 53: Exceptionally high emission rights deficit due to low rainfall
SPAIN AND PORTUGAL EI y Exceptionally high emission rights deficit due to low endesa rainfall Balance of emission rights in 2005 Economic impact = Impact aggravated by adverse hydro Mton CO, conditions = CCGTs have consumed 105% of their annual allocated emission rights and coal plants consumed 125%
Slide 54: Growth in Renewables/CHP
ay endesa ; Capacity (MW)! +8% 1,974 _.@) me Bele? = 533 Cogen “ za {207 | Mini Hydro Other 2004 2005 Sales (€M) +106%, ED) 3 7) 2004 2005 1 100% of the projects in which Endesa participates Growth in Renewables/CHP SPAIN AND PORTUGAL Production (GWh)! +11% 5,970 5373 @)” 2,353 EBIT (€M) +192% | Oo
Slide 55: High growth in production and sales
E_ aaa ee 7 High growth in production and sales endesa Generation (GWh) Distribution (GWh) +5.6% eels @-e224* 52,314 ~ 57,890 i 55,106 ——@y~ 5” , 14,018 aaa 16.154 [ea w Argentina 13,322 884 4.889 4.213 “18% Brazil 13,769 14,753 +7% 16.797 18.764 +12% Chile : 11,317 a Colombia 11.881 11.864 | 9,656
Slide 56: Higher trading levels of ENI and EOC and improved credit rating
| | TIN AMERICA s = Higher trading levels of ENI and EOC and endesa improved credit rating Price performance ADRs (%) Yo — EOC ENI Performance 180 ADRs ENI Eoc 170 A Pere 160 Att et 2004 15.6% 55.9% ie Ful % cum.jJune 05 22.7% 36.5% om AA = cum. Sept.05 34.4% © 63.4% 130 An ae * cum. Dici. 29.1% 67.
Slide 57: Debt structure aligned with business needs and risk
a = FINANCIAL-ANALYSIS Debt structure aligned with business needs endesa and risk Currency hedging Interest rate hedging Debt Currency Pi Interest Rates Debt €M 1074 1207- 19;281 13,074 5,207 18,281 Other Fiveti Chilean Peso cating is baller MO foc Euro Fixed Endesa ex- G.Enersis TOTAL Endesa ex- G.
Slide 58: Endesa Spain debt maturities
FINANCIAL ANALYSIS: ay Endesa Spain debt maturities ies outstanding as of 31 December 2005: €15,049M! €M 4,996 TB Bonds MB Bank debt Notes @) 2,600 10 2010 2011 + credit lines, €1,500M from the new syndicated loan) and covers debt maturities falling * ENDESA’s liquidity in Spain stands at €6,338M (€
Slide 59: Enersis debt maturity
FINANCTAE ANALYSIS: endesa Enersis debt maturity Gross balance of maturi ies outstanding as of 31 December 2005: €5,784M! 2,186 217 €M ll Bonds Bank Debt 761 726 859 149 443 126 348 243 461 278 635 FEE) — 710 228 C—O fers 233 1806 2806 2007 2008 2009 2010 2011 + Enersis has liquidity of C863M to cov
Slide 60: Important legal information
Important legal 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
Slide 61: Signatures
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: January 18th, 2006 By: /s/ Álvaro Pérez de Lema Name: Álvaro Pérez de Lema Title: M