Slide 1: Endesa FY 2014 Results
Endesa FY 2014 Results Madrid, 25 February 2015
Slide 2: Agenda
Agenda 1. Endesa’s successful Public Offering 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 2 FY 2014 Results Madrid, 25 February 2015
Slide 3: Endesa's successful Public Offering
1. Endesa’s successful Public Offering 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 3 FY 2014 Results Madrid, 25 February 2015
Slide 4: Endesa's successful Public Offering
Endesa’s successful Public Offering 25th Nov. 2014: Successful 85% Institutional tranche: 2.2x oversubscription placement of 232 m. shares at 15% Retail tranche: 1.7x oversubscription €13.5 per share Includes full exercise of green shoe option 21.92% Public New Free Float of 29.86% (vs. former
Slide 5: Market context and regulatory update
1. Endesa’s successful Public Offering 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 5 FY 2014 Results Madrid, 25 February 2015
Slide 6: Market context in 2014
Market context in 2014 Demand Electricity wholesale prices Weighted average pool prices Spain(3) (€/MWh) Spain(1) Endesa distribution area(2) (Not adjusted) Industry +2.8% 44.1 42.0 1Q 14 24.3 +0.0% Services -1.6% -5% -0.2% 2Q 14 41.1 Residential -4.1% -1.1% 3Q 14 -1.2% 53.2 4Q 14 51.2 Adjusted for
Slide 7: Regulatory update (I)
Regulatory update (I) Latest regulatory news Following CNMC recommendations (October 2014 Report): New (3rd) draft Taxes from Law 15/2012 are recognized as variable costs (retroactively –years 2013 and RD on non- 2014- and from 2015 onwards) mainland generation Some retroactive negative measur
Slide 8: Regulatory update (II)
Regulatory update (II) Latest regulatory news Frozen access tariffs: 2015 access tariff Dx continues to be remunerated according to an implicit RAB-based framework until unitary investment and O&M values are approved (Order Interruptibility cost removed from access tariff IET/2444/2014) End
Slide 9: Regulatory update (III)
Regulatory update (III) Tariff deficit related issues €3,540 M of tariff deficit according to CNMC final settlement 2013 tariff deficit RD 1054/2014 allowed Endesa to transfer tariff deficit to a group of financial institutions securitization €1.47 bn of total proceeds for Endesa cashed-in in
Slide 10: Financial results and net debt analysis
1. Endesa’s successful Public Offering 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 10 FY 2014 Results Madrid, 25 February 2015
Slide 11: Financial results
Financial results 2014(1) 2013(1) Change €M Revenues 21,512 21,515 +0% Gross margin 5,538 5,500 +1% EBITDA 3,090 3,216 -4% EBIT(2) 1,472 1,615 -9% Net finance expenses 166 106 +57% Share of profit from associates(3) -44 57 -177% Net income 3,988 2,943 +36% From continued operations 943 1,176 -20% Fr
Slide 12: Net debt analysis
Net debt analysis Net debt evolution Net debt (1) / 0.4x(2) 1.8x EBITDA ratio 16,194 8,198 €M • Year 2013: +€435 M cashed in from settlement s 11- 14/2013; +€1,469 M from tariff deficit securitization and +€84 M cashed in from settlements 1-9/2014 (interests) 2,869 1,987 5,420(1) 4,337 1,173 Regulat
Slide 13: Business analysis
1. Endesa’s successful Public Offering 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 13 FY 2014 Results Madrid, 25 February 2015
Slide 14: Highlights
Highlights Sound EBITDA evolution in 2014 Regulated business positively impacted by latest draft RD on non mainland generation and solid performance of Dx business Resilient underlying performance in the liberalized business ex-social bonus 2% output increase due to higher thermal output [+16%] (1)
Slide 15: FY 2014 EBITDA breakdown
FY 2014 EBITDA breakdown FY 2013 FY 2014 % €M Change (%) €M % Generation & 39% 1,252 -31% 861 Generation & 28% Supply Supply 538 Non-mainland 17% generation +64% Non-mainland generation 10% 328 Distribution 51% 1,636 +3% 1,691 55% Distribution TOTAL(1) 3,216 -4% 3,090 TOTAL(1) 15 FY 2014 Results Mad
Slide 16: Regulated business
Regulated business Gross margin evolution of non-mainland Gx and Dx +9% +243 +24 3,260 €M 2,993 Non-mainland 870 627 generation 2,390 2,366 Distribution MC Regulado 2 0 1 3 Delta Non Main lan d Delta Dx MC Regulado 2 0 1 4 2013 Gross margin Non-mainland Gx Distribution 2014 Gross margin Latest dra
Slide 17: Liberalized business
Liberalized business Gross margin evolution €M 2,507 -229 2,278 -9% 2013 Gross margin(1) 2014 Gross margin(1) Social Bonus (positive in 2013 and Gas business negative in 2014) Lower hydro and nuclear output VAS • Resilient underlying performance in the liberalized business ex-social bonus ef
Slide 18: Fixed costs evolution
Fixed costs evolution -4% €M +7% 164 2,448 253(1) 2,284 2,195 Personnel 1.245 1.030 992 Personnel Costs Costs O&M Costs 1.356 1.316 1.316 O&M Costs WCFA(2) -102 -113 -113 WCFA(2) FY 20132013 Dif f FY 20142014 Ajus t es FY 2014 Tot alAjus t ado Reported Adjusted • Sound evolution of recurrent fixed c
Slide 19: Liberalized business: Energy management
Liberalized business Energy management Mainland output 2014 energy management Electricity sources Electricity sales GWh 57,502 110 TWh 110 TWh 56,104 +2.5% 1,786 CCGT 1,605 SCVP purchases(1) 19 19 SCVP sales(1) 12,919 Imported coal 9 Pool sales 12,918 Energy purchases (Domestic Unit purchase cost 33
Slide 20: Final remarks
1. Endesa’s successful Public Offering 2. Market context and regulatory update 3. Financial results and net debt analysis 4. Business analysis 5. Final remarks 20 FY 2014 Results Madrid, 25 February 2015
Slide 21: Final remarks
Final remarks 2014 Shareholder remuneration Gross amount Related item Payment date (€/share) 7.795 Enersis’ divestment 29 October 2014 2014 Extraordinary Dividends 6.0 Optimizing capital structure 29 October 2014 2014 Ordinary 0.38 2014 Results 2 January 2015 Dividends 0.38 2014 Results July 2015 €1
Slide 22: Final remarks
Final remarks FY 2014 Results 22 Madrid, 25 February 2015
Slide 23: Appendix
Appendix Endesa FY 2014 Results FY 2014 Results Madrid, 25 February 2015
Slide 24: Installed capacity and output
Installed capacity and output(1) GW at 31/12/14 GWh FY2014 (and chg. vs. 2013) Installed capacity(2) (and chg. vs. 2013) Output(3) Total 21.7 +1% 69,681 +1.8% Hydro 4.7 +1% 8,778 -8% Nuclear 3.3 0% 24,762 -4% Coal 5.3 0% 24,365 +14% Natural gas 5.4 0% 5,539 +2% Oil-gas 2.9 0% 6,237 -4% (1) Includes
Slide 25: Endesa: financial debt maturity calendar
Endesa: financial debt maturity calendar Gross balance of maturities outstanding at 31 December 2014: €6,068 M(1) Bonds Bank debt and others ECPs and domestic commercial paper (2) 5,150 Endesa's liquidity covers 39 months of 470 debt 199 292 maturities 235 277 117 81 39 36 15 36 47 2015 2016 2017 20
Slide 26: Gross debt structure
Gross debt structure as of December 31st 2014 Structure of Endesa's net debt €M 6,084 6,084 Floating 17% Euro 100% Fixed 83% US$ 40% By interest rate By currency Average cost of debt 3.0% FY 2014 Results Data as of 31 December 2014 26 Madrid, 25 February 2015
Slide 27: Document property notice
“This document is the property of ENDESA and therefore must not be disseminated or published without ENDESA's prior written consent. The content of this document is provided for information purposes only and therefore has no contractual substance and should not be used as part of or construed as a l
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
Slide 29: Endesa Mobile
Endesa Mobile Get full information of the company on Endesa Mobile, the Endesa App for iPhone, iPad and Android devices. Download from Download from App Store Google Play FY 2014 Results 29 Madrid, 25 February 2015