Endesa S.a. · BME:ELE
Endesa — Q1 2021 Earnings Presentation
33 slides from Endesa's earnings presentation, May 5, 2021
Slide 1: First Quarter Consolidated results
First Quarter Consolidated results May 5th, 2021
Slide 2: Key highlights of the period
Key highlights of the period 1,019 €mn EBITDA, Ongoing 91% CO2 emissions Sound cash 2.0136 €/share in line with improvement in free output in generation (+ 37% vs 2019) guidance despite operational mainland doubling operating challenging market efficiency cash flow AGM approved 1 2 3 4 5 conditions
Slide 3: Key ESG highlights
Key ESG highlights Environment Social Governance Our People CO2 emissions free output above 2023 target Health & safety: Vulnerable 36% women in BoD Constant effort to 2021-23 Senior management variable customers support - 40% target for 2022 - reduce retribution linked to RWs deployment accidents a
Slide 4: Market context in Q1 2021
Market context in Q1 2021 Signs of demand recovery and spike in commodity prices impact power prices Demand in Spain (mainland), TWh(1) Commodities spot prices Average pool prices, €/MWh +30% +0.6% 62.2 62.6 45.2 34.9 1Q 2020 1Q 2021 1Q 2020 1Q 2021 Endesa’s area (2) : Q1 2021 By segment (Not adjust
Slide 5: Decarbonization: Mainland generation
Global Power Generation Mainland generation Decarbonization Mainland generation Installed capacity(1), GW Production(2), TWh CO2 emissions free output, % -9% -2% 19.0 12.3 12.1 17.3 3.7 + 0.5 TWh 7.4 + 0.4 GW +14% 4.1 2019 2020 Q1 2021 Target 2023 +5% 7.7 3.3 3.3 7.2 73% 85% 91% 89% 6.9 8.3 - 2.1 GW
Slide 6: Growth in renewable generation capacity
Decarbonization Growth in renewable generation capacity Gross pipeline(1) of renewable projects, GW GENERATION STORAGE • Gross pipeline: 44.4 GW, 6.5 GW with connection points • Generation mature pipeline + In execution: • ~70% Solar • ~30% Wind 44.4 • Acquisition of 519 MW of solar PV additional pr
Slide 7: Electrification: Retail & Endesa X
Retail & Endesa X Electrification Retail & Endesa X Energy sold(1), TWh Customers, mn Electric mobility Charging points, k# -3% 2020 1Q 2021 +6% 23.9 23.2 Liberalized 5.7 5.6 3.5 3.7 5.1 5.6 Regulated 4.7 4.7 7.5 7.1 15.3 13.9 Total power customers 10.4 10.3 1Q 2020 1Q 2021 2020 1Q 2021 Free B2B Fre
Slide 8: Electrification: Energy management
Electrification Energy management Liberalized sales(1), TWh Power integrated margin(1), €/MWh Output(2) hedged -4% 19.7 19.0 Unitary revenue 68.1 67.1 7.3 6.6 Variable cost(3) 33.8 36.8 -12% 97% 12.4 12.4 Unitary integrated 62% margin 34.3 30.3 1Q 2020 1Q 2021 1Q 2020 1Q 2021 2021 2022 Energy purcha
Slide 9: Q1 2021 Financial results
Q1 2021 Financial results endesa
Slide 10: Financial highlights
Financial highlights €mn Reported Net Ordinary FFO Net Debt EBITDA Income(2) 1,019 491 583 7,496 -31% -41% 2.1x +9% Q1 2020 1,120(1) 564(3) Like-for-like -9% -13% Q1 2020 1,476 831 276 6,899(4) (1) Q1 2020 like for like EBITDA excluding +515 €mn of provision reversal from the commitments contained i
Slide 11: Like-for-like EBITDA evolution
Like-for-like EBITDA evolution €mn -457 €mn -31% 1,476 -101 €mn -166 -9% -12 -178 (1) DYoY 1,120 716 -13 0 1,019 -356 -88 550 462 -16% 93 81 81 -% 667 489 476 -3% 1Q 2020 2020 Provisions 1Q 2020 Dx Non mainland Gx Gx+Sx (2) 1Q 2021 Reported Dx Non mainland Gx Gx+Sx EBITDA affected by liberalized bus
Slide 12: Regulated business
Regulated business €mn Gross margin EBITDA Regulated margin: 725 €mn (-39 €mn) -5% -2% • Dx: -16 €mn, impacted by the new retributive 764 parameters 570 725 557 151 81 81 128 • Non mainland: -23 €mn negatively affected by demand drop and positive regularizations in Q1 2020 613 597 489 476 Like-for-l
Slide 13: Liberalized business
Liberalized business(1) €mn Gross margin EBITDA -5% Liberalized margin: 807 €mn (-43 €mn) -16% 850 • Electricity & Others: 766 €mn (+26 €mn). 550 807 82 Including +188 €mn of CO2 regularization 51 103 462 • Gas(2): 11 €mn (-64 €mn), negatively 67 affected by MtM -61 €mn 768 • Endesa X: 30 €mn (-5 €m
Slide 14: Fixed costs evolution
Fixed costs evolution €mn +4% +19 €mn -15 €mn -3%(1,2,3) 523 508 513 494 29 (2) 5 (3) 212 241 -5% 230 235 (1) 138 356 O&M costs 329 329 329 -3% 319 319 -47 -47 -41 -41 Personnel -144 costs Capitalized -47 costs Q1 2020 Net provision Q1 2020 Other Q1 2020 Q1 2021 Other Q1 2021 Reported release lfl ad
Slide 15: Profit & loss
Profit & loss €mn 1Q 2021 1Q 2020 Δyoy EBITDA 1,019 1,476 -31% EBITDA -31% -9% in like for like basis D&A (404) (358) +13% EBIT 615 1,118 -45% Higher D&A mainly coming from provisions reverse in 2020, higher asset amortization and slightly additional bad debt Net Financial Results 39 (10) -490% Resu
Slide 16: Cash Flow
Cash Flow €mn -69 -354 -2 -11 1,019 -425 583 158 EBITDA Provisions Working Income Financial FFO Capex (2) FCF paid capital Taxes Expenses & others (1) PY 1,476 -55 -1,210 74 -9 276 -508 -232 Delta YoY -31% +25% -71% n.a. +22% +111% -16% 168% Sound cash flow generation (1) Net working capital + Net p
Slide 17: Net financial debt analysis
Net financial debt analysis €mn Net debt evolution Gross debt 7,496 6,899 11 7,977 158 744 848 7,309 481 875 410 6,024 6,648 7,496 6,899 2020 FCF Dividends Others(1) 1Q 2021 2020 1Q 2021 Regulatory working capital(2) Net debt ex-regulatory Cash & Derivatives Net debt working capital Leverage(3) (tim
Slide 18: Leading innovation in Sustainable Finance
Sustainable Finance Leading innovation in Sustainable Finance Sustainability-linked transactions Share of Sustainable Finance 100% Endesa’s bank liquidity 3 year extension of Club Deal facilities SDG-linked Bank Facilities (550 €mn) 8.0 €bn Gross Financial Key topics 4 year Bank Credit Lines Debt (2
Slide 19: Closing remarks
Closing remarks 2021 Guidance Progressing in Remarkable Leader in AGM approved confirmed decarbonization cash generation innovative DPS 2.0136 and during the sustainable €/share Q1 exceptional electrification, period financial outstanding 9% conditions to as well as in products dividend yield normal
Slide 20: Q1 2021 Annexes
Q1 2021 Annexes endesa
Slide 21: Endesa: Q1 2021 P&L
Endesa: Q1 2021 P&L €mn Gx+Sx Dx Structure Adjustments TOTAL Income 4,398 641 105 -151 4,993 Procurements and services -3,444 -44 -11 38 -3,461 Gross margin 954 597 94 (113) 1,532 Self-constructed assets 16 25 0 0 41 Personel expenses -125 -67 -47 4 -235 Other fixed operating expenses -290 -79 -57 1
Slide 22: Endesa: Q1 2020 P&L
Endesa: Q1 2020 P&L €mn Gx+Sx Dx Structure Adjustments TOTAL Income 4,459 656 135 -181 5,069 Procurements and services -3,443 -43 -9 40 -3,455 Gross margin 1,016 613 126 (141) 1,614 Self-constructed assets 15 29 3 0 47 Personel expenses 72 118 -47 1 144 Other fixed operating expenses -304 -93 -72 14
Slide 23: Profitability and credit metrics
Profitability and credit metrics Profitability Return on invested capital Credit metrics -8.0 pp -3.4 pp - 56% 15.4% 43% 43% 48% 12.0% 2.3x 1.7x lfl1.9x 1Q 2020 1Q 2021 2020 1Q 2021 2020 1Q 2021 Net Ordinary ROIC(1) FFO(2)/Net Debt Net debt/EBITDA Income/EBITDA (1) Calculated on a like-for-like basi
Slide 24: Infrastructure and Network
Infrastructure and Network Distributed energy(1), TWh Main operative KPIs +7% % Losses(2) TIEPI(3) (min) 32.6 30.6 +0.2 pp +22% 8.2 8.4 13 16 1Q 2020 1Q 2021 1Q 2020 1Q 2021 1Q 2020 1Q 2021 (1) Energy supplied to customers, with or without contract, auxiliary consumption of generators and (3) Tiempo
Slide 25: Gas operational highlights
Gas operational highlights Volumes sold(1), TWh Key figures 8% 22.5 2020 1Q 2021 D 20.9 Wholesale business 3.6 2.7 Total customers 1.67 1.66 -1% (mn) Retail 18.2 18.9 Unitary margin (2) 3.6 0.5 -86% (€/MWh) (2) Unitary margin exMtM 1Q 2020 1Q 2021 2.2 1.9 -14% (€/MWh) (1) Rounded figures Q1 2021 Res
Slide 26: Financial debt maturity calendar
Financial debt maturity calendar €bn Gross balance of maturities(1) ▪ Average life of debt: 4.5 years 3.5 2.1 ▪ Coverage of 35 months of debt maturities 1.9 0.1 0.1 3.1 0.6 ▪ Fixed rate 59% of Gross Debt 1.8 ▪ 99% in Euros 1.3 0.2 0.3 0.5 ▪ Liquidity 4,462 €mn: 474 €mn in cash and 0.2 0.1 0.2 0.1 3,
Slide 27: Installed capacity and output
Installed capacity and output Total net installed capacity, MW Total gross output(1), GWh 1Q 2021 2020 Var. (%) 1Q 2021 1Q 2020 Var. (%) Mainland 17.387 17.388 -0% 12.351 12.374 -0% Renewables (2) 7.780 7.781 -0% 4.360 3.737 17% Hydro 4.748 4.749 -0% 2.356 2.249 5% Wind 2.422 2.423 -0% 1.855 1.398 3
Slide 28: Headcount
Headcount 2020 Q1 2021 9,591 2,011 9,473 7,235 1,960 1,136 7,143 2,943 1,116 2,927 2,503 2,480 2,356 2,330 4,637 4,586 3,596 875 3,547 844 440 447 1,041 1,039 Male Female Total Male Female Total Generation & Supply Distribution Structure & others Q1 2021 Results - Madrid, 05 May 2021 28
Slide 29: Market shares
Market shares Q1 2021 Power supply Mainland Generation, Distribution and Gas supply Customers (mn) (1) Endesa Mainland Generation(3) Regulated Free Total Market Share 1Q 2021 FY2020 Business 0.0 0.9 0.9 23% Endesa market share (4) 18.8% 18.0% Residential 10.9 17.7 28.7 29% Total 11.0 18.6 29.6 Endes
Slide 30: 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: (33 €mn x (360/90) + 4 €mn) / 8,240 €mn = Average cost of debt (%) 6.2 1.7% (Principal x number of days of term) / (Principal in force at the end of
Slide 31: Glossary of terms (II/II)
Glossary of terms (II/II) Reference note of Consolidated Item Calculation Management Report Gross Capex (€mn) Gross tangible (221 €mn) and intangible (55 €mn) Capex - rights of use (4 €mn) = 272 €mn 6.6 Long and short term financial debt (5,908 €mn + 2,069 €mn) - Cash and cash equivalents (474 €mn)
Slide 32: 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 33: IR Team
IR Team Contact us Mar Martinez Head of Investor Relations Investor Relations team Contacts Isabel Permuy Javier Hernandez Email: ir@endesa.es Francesc Trilla Juan Carlos Jimenez Phone: + 34 91 213 15 03 Sonia Herranz + 34 91 213 90 49 Paloma de Miguel Website: www.endesa.com 33