Endesa S.a. · BME:ELE
Endesa — Q1 2022 Earnings Presentation
30 slides from Endesa's earnings presentation, May 10, 2022
Slide 1: First Quarter 2022 Consolidated results
First Quarter 2022 Consolidated results May 10th, 2022 5
Slide 2: 1Q 2022 Consolidated results - José Bogas, CEO
1Q 2022 Consolidated results José Bogas CEO
Slide 3: Key highlights of the period
Key highlights of the period Further EBITDA -10% and ~+50% capex AGM approved deterioration in Net Ordinary acceleration 2021 total dividend macro scenario Income -31% allocated to core 1.437 €/share and energy context businesses 7% Div. Yield 1Q 2022 Results - Madrid, 10 May 2022 3
Slide 4: Market context
Market context Record high power prices driven by gas extreme volatility Demand in Spain (mainland) (TWh)(1) Commodities spot prices Average pool prices (€/MWh) +407% -2.9% 229.4 62.6 60.8 45.2 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2022 average prices in Europe (€/MWh) Endesa’s area (2) : 1Q 2022 By se
Slide 5: Regulatory developments
Regulatory developments REPowerEU ▪ Provides guidance of temporary measures to mitigate the energy crisis impact ▪ Extension of fiscal measures to 30/06/22 ▪ Modification of RECORE framework ▪ Further reduction of system charges RDL 6/2022 ▪ Extension of gas levy till 30/06/22. New scheme ▪ Extensio
Slide 6: Lower production in Renewable Generation
Lower production in Renewable Generation Installed capacity(1) (GW) Production(2) (TWh) -2% +118% 20% 17.3 0.7 16.9 -1.1 +3% 7.7 8.4 +9% -1.2 TWh Hydro 12.5 +3% vs. 1Q2021 57% 3.3 24% 3.3 -29% 6.3 5.2 -17% 1Q 2021 RW Thermal 1Q 2022 CO2 free XX% vs. 1Q2021 64% 69% CO2 emissions capacity 80% free out
Slide 7: More than 80 GW pipeline supporting renewable acceleration
More than 80 GW pipeline supporting renewable acceleration Renewables pipeline(1) (GW) 2022-24 Additional capacity target(1) (GW) 25 2.0 4.0 2.0 81 46 0.1 8 In operation In execution Residual target 2 Gross Pipeline BESS Early stage Mature pipeline In execution (2) ~8 GW with connection points 2022
Slide 8: Outstanding increase in liberalized customers (~800k)
Outstanding increase in liberalized customers (~800k) Free power sales(1) Free power customers Charging points(2) (TWh) (mn) (k#) -3% +13% +36% 19.5 19.0 6.4 10.2 5.6 5.6 5.5 7.5 13.9 13.5 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2021 1Q 2022 B2B B2C Regulated Regulated (TWh) 3.7 3.2 -14% (mn) 4.7 4.1 -13
Slide 9: Stable integrated electricity margin despite conjunctural market context
Stable integrated electricity margin despite conjunctural market context Liberalized sales(1) (TWh) Integrated margin(2) (€/MWh) Financial KPIs 4.8 TWh -3% 5.6 TWh -% indexed indexed 1Q 2021 1Q 2022 sales sales 19.0 18.4 Unitary revenue (€/MWh) 67 141 +110% 6.6 30 30 5.9 Variable cost(3) (€/MWh) 37
Slide 10: Continued improvement in network quality
Continued improvement in network quality Distributed energy (TWh) Losses (%) TIEPI(1) (min.) -% -0.3 pp -7% 32.6 32.5 8.4 15.8 8.1 14.7 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2021 1Q 2022 Energy to grid customers(2) (TWh) 27.5 27.3 -1% (1) Tiempo de Interrupción Equivalente a la Potencia Instalada (Inst
Slide 11: 1Q 2022 Financial results - Luca Passa, CFO
1Q 2022 Financial results Luca Passa CFO
Slide 12: Financial highlights (€mn)
Financial highlights (€mn) EBITDA Net Ordinary Income FFO -10% -31% -182% 583 1,020 914 491 338 -476 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2022 Results - Madrid, 10 May 2022 12
Slide 13: EBITDA ex-one offs grows despite headwinds
EBITDA ex-one offs grows despite headwinds Gross capex by business (€mn) EBITDA by business(1) (€mn) -106 €mn -10% -11 DYoY 20% 1,020 (2) 215 -266 914 260 -44 475 +83% 8% 45% 155 Gx+Sx -62 €mn (-11%) 402 +48% vs. 129 144 -7% 1Q2021 476 432 -9% 27% -137 -206% 1Q 2021 1Q 2022 EBITDA ex- 832 914 +10% o
Slide 14: Generation+Supply: integrated business model drives EBITDA ex-one offs increase
Generation+Supply(1): integrated business model drives EBITDA ex-one offs increase Gross margin (€mn) EBITDA (€mn) • Gross margin: 898 €mn (-37 €mn) -4% -11% • CO2 sentence in 2021: -188 €mn • Gx & Sx: +151 €mn ✓ Management of commodities: 935 898 544 +160 €mn 482 ✓ Integrated margin: -21 €mn ✓ Ende
Slide 15: Networks: stable results excluding previous year resettlement
Networks: stable results excluding previous year resettlement Gross margin (€mn) EBITDA (€mn) • Gross margin: 558 €mn (-39 €mn) -7% -9% • Previous year resettlement: 597 -32 €mn 558 476 432 • Fixed costs and others: 126 €mn (5 €mn increase) 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2022 Results - Madrid, 1
Slide 16: Net Ordinary Income evolution
Net Ordinary Income evolution €mn -31% • Net Ordinary Income -31%, net of one offs +14% -106 -21 -22 • EBITDA -10% -54 50 • D&A +5% 491 338 • Lower financial results driven by the last year CO2 sentence interests (-70 €mn) 1Q 2021 Net EBITDA D&A Financial Taxes Minorities 1Q 2022 Net Ordinary Income
Slide 17: FFO affected by temporary current commodities scenario and regulatory working capital increase
FFO affected by temporary current commodities scenario and regulatory working capital increase €mn Temporary -0.8 €bn: ▪ -0.6 €bn from energy market context ▪ -0.2 €bn higher regulatory working capital -73 914 -476 2 -1,310 -9 EBITDA Provisions paid Working capital Income Taxes Financial Expenses FF
Slide 18: Cost of debt at historical minimum level
Cost of debt at historical minimum level Net debt evolution (€mn) Financial KPIs 10,334 529 10 8,806 533 963 476 Δ 795 2021 1Q 2022 Net debt/EBITDA 2.1x 2.5x +0.4x 9,371 8,011 Cost of debt 1.5% 1.0% -0.5 bp Sustainable debt 60% 65% +5 pp 2021 FFO Cash Capex (1) Dividends Others (2) 1Q 2022 Regulator
Slide 19: Closing Remarks
Closing Remarks Leveraging on integrated FY 2022 business Committed to ~90% 2022 guidance model in an our customers renewables confirmed extremely in a high pool target already volatile price context in execution energy scenario 19 19
Slide 20: 1Q 2022 Annexes
1Q 2022 Annexes encesa
Slide 21: Endesa: 1Q 2022 P&L
Endesa: 1Q 2022 P&L €mn Conventional Gx Renewables Retail Endesa X Dx Structure Adjustments TOTAL Income 2,689 284 6,400 89 593 96 -2,555 7,596 Procurements and services -1,598 -53 -6,719 -41 -35 0 2,431 -6,015 Income and expenses from energy derivatives -407 -14 296 0 0 0 0 -125 Gross margin 684 21
Slide 22: Endesa: 1Q 2021 P&L
Endesa: 1Q 2021 P&L €mn Conventional Gx Renewables Retail Endesa X Dx Structure Adjustments TOTAL Income 1,276 266 3,341 59 641 105 -914 4,774 Procurements and services -842 -53 -3,000 -30 -44 -11 774 -3,206 Income and expenses from energy derivatives 28 0 -66 0 0 0 2 -36 Gross margin 462 213 275 29
Slide 23: Fixed costs evolution
Fixed costs evolution €mn +32 €mn +6% 545 545 513 513 0 0 243 243 235 235 +3% Personnel costs 355 355 O&M costs 319 319 +11% Capitalized -41 -41 -53 -53 costs 1Q 2021 Other 1Q 2021 1Q 2022 Other 1Q 2022 Reported adjustment Adjusted Adjusted adjustment Reported 1Q 2022 Results - Madrid, 10 May 2022 2
Slide 24: Installed capacity and output
Installed capacity and output Total net installed capacity (MW) Total gross output(1) (GWh) 1Q 2022 2021 Var. (%) 1Q 2022 1Q 2021 Var. (%) Mainland 16,933 16,877 +0% 12,533 12,351 +1% Renewables (2) 8,445 8,389 +1% 2,980 4,360 -32% Hydro 4,746 4,746 -0% 1,137 2,356 -52% Wind 2,602 2,546 +2% 1,551 1,
Slide 25: Gas operational highlights
Gas operational highlights Volumes sold(1) (TWh) Key figures 2021 1Q 2022 Δ -9% Total customers (mn) 1.7 1.7 -% 22.5 20.5 1Q 2021 1Q 2022 Δ Total Gas margin (€mn) 11 72 +6x Total unitary margin (€/MWh) 0.5 3.5 +7x Of which: Margin Retail (€mn) 59 -26 -145% 1Q 2021 1Q 2022 Retail unitary margin (€/MW
Slide 26: Financial debt maturity calendar
Financial debt maturity calendar €bn Gross balance of maturities(1) 4.4 4.3 0.4 0.1 3.1 3.1 0.7 ▪ Average life of debt: 4.0 years 3.8 1.2 ▪ Fixed rate 40% of Gross Debt 0.5 2.4 1.2 1.0 0.1 ▪ 99% in Euros 0.4 0.2 2022 2023 2024 2025 2026+ ECP’s and other marketable securities (2) Bank Debt Other debt
Slide 27: Glossary of terms (I/II)
Glossary of terms (I/II) Reference note of Consolidated Item Calculation Management Report Average cost of debt (%) Cost of gross financial debt / gross average financial debt: (31 €mn x (360/90)) / 12,616 €mn = 1.0% 6.2 (Principal x number of days of term) / (Principal in force at the end of the pe
Slide 28: Glossary of terms (II/II)
Glossary of terms (II/II) Reference note of Consolidated Item Calculation Management Report Gross tangible (312 €mn) and intangible (92 €mn) Capex - rights of use (1 €mn) + Others (-1 €mn) = 402 Gross Capex (€mn) n/a €mn Long and short term financial debt (8,823 €mn + 4,661 €mn) - Cash and cash equi
Slide 29: 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 30: 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 30