Slide 1: Endesa 1H 2011 results
29 | 07 | 2011 endesa 1H 2011 results
Slide 2: Market context in 1H 2011
consolidated results 1H 2011 Market context in 1H 2011 Demand evolution Spain: +3.8%(2) demand 8.6% 8.7% Latin slowing down America: solid 0.4%(1) 2.1% 5.7% affected by growth in the Residential Services residential and region with Industry 2.9% small & Spain outstanding -2.1% medium 0.3% performanc
Slide 3: Operating results affected by non-recurrent effects
consolidated results 1H 2011 Operating results affected by non-recurrent effects €M 1H 2011 1H 2010 Change Like-for-like Revenues 16,194 15,113 +7% Gross margin 5,314 5,590 -5% EBITDA 3,493 3,850 -9% -3% Spain&Portugal&Others 2,064 2,272 -9% -4%(1) Endesa Latin America 1,429 1,578 -9% -2%(2) EBIT 2,
Slide 4: Iberia: results affected by increase in energy cost and change in perimeter
consolidated results 1H 2011 Iberia: results affected by increase in energy cost and change in perimeter Liberalized margin normalization Endesa mainland output Pool prices Unit revenue GWh +18% 28,467 Forward 60 56 €/MWh 56 €/MWh 2H 2011 3,246 CCGT 55 €/MWh 24,041 Fuel: 0 53 €/MWh Fuel: 33 1,739 50
Slide 5: Latin America: results affected by non-recurrent effects
consolidated results 1H 2011 Latin America: results affected by non-recurrent effects Drought impact in Chile: €136 M Weakness in US$ vs. €... Gx output and energy purchases 1,45 (1H2011 vs. 1H 2010) 1,40 GWh 1,35 +586 Thermal 1,30 1,25 -1,536 Hydro 1,20 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 +615 Energy pur
Slide 6: Forward sales strategy
consolidated results 1H 2011 Forward sales strategy Spain & Portugal Latin America (% estimated mainland output hedged) (% estimated output hedged) 100% Contracting level in Latin America that optimizes margin 75-80% and risk exposure 65-70% 55-60% Jul-Dec 2011 2012 Jul-Dec 2011 2012 34% of the gene
Slide 7: Regulation update
consolidated results 1H 2011 Regulation update • LRT: 9.8% average increase from January 1st & 1.5% from July 1st • Access tariff: 7.6% average increase from April 1st Spain Spain • Positive outlook for capacity and availability payments • Tariff deficit securitization in progress • Nuclear power pl
Slide 8: On track to achieve efficiency and synergy programs targets for FY 2011
consolidated results 1H 2011 On track to achieve efficiency and synergy programs targets for FY 2011 €M Endesa Synergy Plan Endesa Zenith Plan 840 100% 137 100% Distribution 30% Distribution 45% Generation & energy management 40% Achieved in Generation & Achieved in 1H 2011 82 energy 1H 2011 464 man
Slide 9: Developments in capacity additions & investment projects
consolidated results 1H 2011 Developments in capacity additions & investment projects • New CCGT capacity in operation: • Tejo II (851 MW): 50%Endesa • Besos 5 (873 MW) • Almaraz nuclear repowering: 19 MW capacity increase Spain Spain • Repowering in Balearic Islands and Canary Island • Agreement to
Slide 10: A sound financial position
consolidated results 1H 2011 A sound financial position Net debt evolution in 1H 2011 (€M) 15,336 2,385 3,043 12,157 1.7x Enersis 4,188 215 1,283 136 4,385 Pending 1,045 1.3x 6,088 regulatory Tariff Def. -€857 M assets Spain& Securitization: €3,637 M Portugal 11,148 & others Historical Def: €263 M D
Slide 11: Spain&Portugal&Others 1H 2011
spain&portugal&others 1H 2011
Slide 12: Highlights in 1H 2011
spain&portugal&others 1H 2011 Highlights in 1H 2011 Demand increase slowing down (+0.4% [1]) 18% increase in output(2): higher thermal generation results in higher fuel costs Margin normalization in liberalized business Net financial results improving sharply Change in perimeter: EBITDA - €130 M (1)
Slide 13: Solid results affected by disposals & margin normalization
spain&portugal&others 1H 2011 Solid results affected by disposals & margin normalization 1H 2011 1H 2010 Change Like-for-like (3) €M Revenues 11,230 10,526 +7% Gross margin 3,197 3,426 -7% -2% EBITDA 2,064 2,272 -9% -4% EBIT 1,329 1,603 -17% Net finance expenses(1) 164 342 -52% Net attributable inco
Slide 14: Gross margin impacted by energy costs & perimeter
spain&portugal&others 1H 2011 Gross margin impacted by energy costs & perimeter €M 3,426 +9% 3,197 -14% €160 M -7% 1H 2010 Liberalized business Regulated business Perimeter 1H 2011 Higher production & Distribution Perimeter (renewables, sales to final customers Non-mainland systems gas, transmission
Slide 15: Competitive energy sources in current market scenario
spain&portugal&others 1H 2011 Competitive energy sources in current market scenario Liberalized business Iberia Gross electricity sources Gross electricity sales 61 TWh 61 TWh 5 Pool sales Energy purchases 23 15 LRT (2) LRT Auctions 10 51% 35 TWh Mainland ordinary regime 28 including 41 Liberalized
Slide 16: Latin America 1H 2011
latin america 1H 2011
Slide 17: Highlights in 1H 2011
endesa latin america 1H 2011 Highlights in 1H 2011 Stable generation volumes: drought in Chile compensated by wet hydro conditions in Colombia Distribution sales: +4.0% with outstanding performance in Peru (+7.9%) and Chile (+6.6%) Chile: €136 M impact from drought Argentina: higher costs due to inf
Slide 18: Operating results affected by non recurrent items
endesa latin america 1H 2011 Operating results affected by non recurrent items €M 1H 2011 1H 2010 Change Revenues 4,964 4,587 +8% Gross margin 2,117 2,164 -2% EBITDA 1,429 1,578 -9% EBIT 1,139 1,208 -6% Net finance expenses(1) 169 231 -27% Net income 695 742 -6% Net attributable income 320 312 +3% •
Slide 19: Latin America: FX impact in EBITDA
endesa latin america 1H 2011 Latin America: FX impact in EBITDA Generation business: -€ 28M Distribution business: +€17 M 105 115 110 100 105 100 95 95 90 90 85 85 80 75 80 31/12/2009 31/03/2010 30/06/2010 30/09/2010 31/12/2010 31/03/2011 30/06/2011 01/01/2010 01/04/2010 01/07/2010 01/10/2010 01/01/
Slide 20: Chile: generation margins affected by severe drought
endesa latin america 1H 2011 Chile: generation margins affected by severe drought Generation output Distribution sales GWh -9% Lower generation due to +7% severe drought (-26% hydro), partially compensated by 10.140 higher thermal generation 9.188 6.726 6.307 Growth in distribution sales after 2
Slide 21: Brazil: resilient results despite unfavourable conditions
endesa latin america 1H 2011 Brazil: resilient results despite unfavourable conditions GWh Generation output Distribution sales Lower generation (-32%) due to +2% dispatch decisions in Cachoeira and lower thermal 9.249 9.474 Good performance in Ampla -32% (+5%) compensates decrease in Coelce (-1
Slide 22: Colombia: net worth tax offsets higher margins
endesa latin america 1H 2011 Colombia: net worth tax offsets higher margins GWh Generation output Distribution sales +8% +3% Increase in generation due to 6.126 6.305 favourable hydro conditions 5.098 5.510 Increase in distribution sales 1H 2010 1H2011 1H 2010 1H 2011 Gx EBITDA Dx EBITDA €M -12%
Slide 23: Peru: higher activity and lower fixed costs
endesa latin america 1H 2011 Peru: higher activity and lower fixed costs Generation output Distribution sales Higher generation due to GWh +14% better hydro conditions, grid +8% restrictions in the north and higher availability 4.984 4.390 Strong economic growth 3.036 3.276 lead to 8% increase i
Slide 24: Argentina: demand growth
endesa latin america 1H 2011 Argentina: demand growth Generation output Distribution sales GWh +9% +3% Strong output increase (decrease in hydro offset by thermal production) 8.008 8.717 8.279 8.539 Slight increase in demand due to mild temperatures 1H 2010 1H 2011 1H 2010 1H 2011 €M Gx EBITDA D
Slide 25: Conclusions 1H 2011
conclusions 1H 2011
Slide 26: Final remarks
consolidated results 1H 2011 Final remarks Solid results considering the challenging environment and non-recurrent items both in Iberia and Latin America Tariff increase in Spain goes in the right direction but additional effort will be required Exceptional negative financial market slowed down defi
Slide 27: Appendices 1H 2011
appendices 1H 2011
Slide 28: Installed capacity and output
appendices 1H 2011 Installed capacity and output(1) Spain& Endesa Latin MW at 30/06/11 Portugal&Others America Total Total 24,184 15,832 40,016 Hydro 4,716 8,666 13,382 Nuclear 3,681 - 3,681 Installed Coal 5,804 522 6,326 capacity Natural gas 4,632 3,966 8,598 Oil-gas 5,351 2,592 7,943 CHP/Renewable
Slide 29: Operational growth in generation and distribution
appendices 1H 2011 Operational growth in generation and distribution Generation Output Distribution Sales +4.0% +0.5% 34,320 GWh GWh 32,997 29,611 29,751 8.539 +3% 8.279 8.008 8.717 +9% Argentina 1.975 1.352 -32% Brazil +2% 9.474 9.249 10.140 9.188 -9% Chile 6.307 6.726 +7% Colombia 5.098 5.510 +8%
Slide 30: Gx & Dx EBITDA affected by Chilean drought, Colombian worth tax and Fx
appendices 1H 2011 Gx & Dx EBITDA affected by Chilean drought, Colombian worth tax and Fx Ebitda Generation Ebitda Distribution €M -5% stripping out net worth +3% stripping out net worth tax in Colombia tax in Colombia 849 -14% 726 -3% 702 28 n.a -1 63 734 Argentina 103 69 +10% -4% Brazil 371 355 10
Slide 31: Endesa (excl. Enersis): financial debt maturity calendar
appendices 1H 2011 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 30 June 2011: €8,124 M(1) Bonds (2) Bank debt and others ECPs and domestic commercial paper (3) 3,104 Endesa's Endesa's 2,033 liquidity liquidityexcl. excl. 1,829 1,543 Enersis Ener
Slide 32: Enersis: financial debt maturity calendar
appendices 1H 2011 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 30 June 2011: €5,481 M(1) Bonds Bank debt and others 2,570 Enersis Enersishas has 517 sufficient sufficient liquidity liquidityto to cover cover 892 2,053 22 months 542 767 710 22 months 257 of of
Slide 33: Financial policy and debt structure
appendices 1H 2011 Financial policy and debt structure Structure of Endesa's debt ex-Enersis Enersis debt structure €M €M 7,772 7,772 4,385 4,385 US$ 1% Floating 33% Floating 47% Other 46% Hedged 4% Euro 99% Chilean Peso Fixed 63% 23%(1) Fixed 53% US$ 31% By interest rate By currency By interest rat
Slide 34: Endesa has major direct holdings in companies other than Enersis in Latin America
appendices 1H 2011 Endesa has major direct holdings in companies other than Enersis in Latin America Proportionate Proportionate €M % direct 1H 2011 31.06.2011 stake EBITDA Net debt 60.6% Codensa 26.7% 47 102 Emgesa 21.6% 43 161 Direct holdings Endesa Brasil 28.5% 135 175 Edesur 6.2% 2 -0.4 60% Dock
Slide 35: 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
Slide 36: Consolidated results 1H 2011
consolidated results 1H 2011 36