Endesa S.a. · BME:ELE
Endesa — Endesa Sa Madrid — 9M 2024 Earnings Presentation
31 slides from Endesa's earnings presentation, Oct 30, 2024
Slide 1: 9 Months 2024 Consolidated Results
9 Months 2024 Consolidated Results October 30th, 2024
Slide 2: 9M 2024 Consolidated results - José Bogas, CEO
9M 2024 Consolidated results José Bogas CEO
Slide 3: Key highlights of the period
Key highlights of the period Economic Earnings Cash performance evolution generation EBITDA Net Income FFO 3.9 €bn 1.4 €bn 2.7 €bn +16% vs PY +33% vs PY -0.2 €bn vs PY Comfortable to meet Sound cash generation: FY 2024 targets FFO/ND at 44% 9M 2024 Results - Madrid, 30 October 2024 3
Slide 4: Main operational KPIs
Main operational KPIs Gross Capex by business(1) 9M 2023 9M 2024 RES Capacity (GW) 9.3 10.1 +0.8 GW CO2 GHG free production on total(2) 79% 88% +9 p.p. Fixed price power sales(3) 46% (TWh) 40 41 +3% 1.3 €bn -15% vs. 9M 2023 Free power customers (mn) 6.9 6.7 -0.2 mn 21% ~70% TIEPI(4) (min) 38 37 -1 m
Slide 5: Signs of demand recovery pointing to a trend shift
Signs of demand recovery pointing to a trend shift Gas TTF spot prices (€/MWh) CO2 spot prices (€/t) Average Iberian power pool prices (€/MWh)(1) 80 110 2023 Average: 40 €/MWh 2023 Average: 86 €/t 70 2024 Average: 31 €/MWh 100 2024 Average: 65 €/t -42% 60 90 50 80 40 - 24% 91 30 - 22% 70 52 60 20 50
Slide 6: Moving towards mix decarbonization
Moving towards mix decarbonization Installed capacity(1) (GW) Production(2) (TWh) -3% 0.8 -45% Cleaner generation mix: 17.8 17.2 12% -1.4 Flat • +36% renewable output 9.3 10.1 +9% ➢ +69% hydro output 38 (5.9 TWh) 51% • Coal free Gx mix 3.3 37% Flat vs. 9M 2023 3.3 FLAT 5.2 3.8 -27% 88% CO2 free outp
Slide 7: Progressing on the "partnership" business model
Progressing on the “partnership” business model Sale of 49.99% of solar assets in Spain 25th July 2024 Partnership model: • 2 GW solar assets from 48 PV plants in operation + 15 year PPA in buy 100% of energy at a • Maintenance of full control of a strategic asset in our integrated business • Value
Slide 8: Liberalized sales and customer evolution affected by competitive pressure
Liberalized sales and customer evolution affected by competitive pressure Customers(1) (mn) Sales(2) (TWh) -3% -5% 6.9 6.7 59 56 Very competitive 17 16 environment intensified by low prices context 6.5 6.3 B2B B2C 43 40 0.3 0.3 Commercial initiatives to 9M 2023 9M 2024 increase loyalty, 9M 2023 9M 2
Slide 9: Renewable and supply strong performance supports integrated strategy delivery
Renewable and supply strong performance supports integrated strategy delivery Output / Sales (TWh) Free power unitary margin(2) (€/MWh) Hedged inframarginal output(3) CO2-free output / Fixed price sales 80% +5% 63 9 57 54 98% 97% 46 12 -26% 54 TWh 8 Free sales FY2023 2024e 70% 4 -6% vs 9M2023 52 €/M
Slide 10: Gas margin recovers from last year negative performance
Gas margin recovers from last year negative performance Total volumes(1) (TWh) Gas unitary margin(2) (€/MWh) Volumes hedged(3) (%) -15% 63 ~2 16 53 97% 93% 10 70% 47 43 9M 2023 9M 2024 ~-4 2024 2025 2026 9M 2023 9M 2024 Portfolio FY2023 FY2023 2024e Sales CCGT vs. 2024e -2.5 €/MWh >2 €/MWh volumes 6
Slide 11: 9M 2024 Financial results - Marco Palermo, CFO
9M 2024 Financial results Marco Palermo CFO
Slide 12: Key financial highlights
Key financial highlights €bn EBITDA Net Income FFO +16% +33% -0.2 €bn 3,881 1,404 2,839 2,669 3,353 1,468 Q3 1,059 877 604 Q3 1,224 180 1,477 Q3 2,476 2,413 H1 879 800 H1 1,615 1,192 H1 12 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 +30% +0.8 €bn Net Ordinary Adjusted Income(1) 1,059 1,376 FFO(2
Slide 13: +16% EBITDA driven by strong delivery across all business lines
+16% EBITDA driven by strong delivery across all business lines €mn EBITDA by business(1) +528€mn +16% 3,881 YoY 3,353 102 1 323 996 Flat 102 996 Structure&Adj.: 9M 2023: -208 €mn 1.2% 731 +16% extraordinary levy Gx+Sx: +425 €mn (+20%) 9M 2024: -202 €mn 1.2% 629 extraordinary levy 876 +58% 553 1,36
Slide 14: Gx&Sx EBITDA boosted by gas business recovery
Gx&Sx EBITDA boosted by gas business recovery €mn EBITDA Gas margin: +425 €mn + Recovery from the extraordinary negative market +20% conditions in 9M 2023 49 48 Free power margin evolution 350 driven by: -21 - Thermal and Short Position Gross margin +377 €mn normalization… + …almost offset by strong
Slide 15: Sound grids EBITDA improvement
Sound grids EBITDA improvement €mn EBITDA +102 €mn +7% Gross margin increase mainly 63 39 from 2020 retribution parameters update Fixed costs and Others improvement from provision 1,362 1,464 reversal and efficiencies EBITDA 9M 2023 Gross margin Fixed costs & others EBITDA 9M 2024 9M 2024 Results -
Slide 16: Net Income up by a sound +33% year on year
Net Income up by a sound +33% year on year Profit & loss (€mn) 9M 2023 9M 2024 Δ yoy Δ% EBITDA 3,353 3,881 528 15.7% D&A and Provisions increase mainly D&A and Provisions (1,450) (1,581) (131) due to investment effort Financial results & Others (397) (377) 20 Stable Financial results driven by highe
Slide 17: Outstanding cash generation
Outstanding cash generation… €mn Working capital & others –0.6 €bn(1) -197 -49 3,199 -503 2,669 -183 -530 €mn -280 Gas 3,881 arbitration 3,199 1.5 €bn cash 2,669 generation in Q3 EBITDA Provisions paid Regulatory (2) Remaining Income Taxes Net Financial FFO FFO adj.(4) working capital working capita
Slide 18: Supports financial sustainability criteria
… supports financial sustainability criteria €bn Net financial debt (1) Gross financial debt (1) Flat -2% 13.7 13.4 10.4 10.4 Regulatory 0.6 0.6 3.3 3.0 working capital 1.1 2.7 1.5 Financial sustainability 9.9 9.8 10.4 10.4 FY2023 FFO Cash Capex Dividends 9M 2024 FY 2023 9M 2024 & Others (2) & Other
Slide 19: 9M 2024 Closing remarks - José Bogas, CEO
9M 2024 Closing remarks José Bogas CEO
Slide 20: Closing Remarks
Closing Remarks Our integrated strategy Sound cash generation Results well on track to as a driver of supporting healthy achieve FY 2024 outstanding results in credit metrics guidance 9M 2024 2025-27 Strategic Plan to be presented on November 19th, 2024 9M 2024 Results - Madrid, 30 October 2024 2020
Slide 21: 9M 2024 Annexes
9M 2024 Annexes endcesa
Slide 22: P&L 9M 2024 vs. 9M 2023
P&L 9M 2024 vs. 9M 2023 €mn 9M 2024 9M 2023 % Var. Income 15,765 19,211 -18% Procurements and services (9,616) (11,938) -19% Income and expenses from energy derivatives (800) (2,375) -66% Gross margin 5,349 4,898 +9% Fixed operating costs and other results (1,468) (1,545) -5% EBITDA 3,881 3,353 +16%
Slide 23: Endesa: 9M 2024 P&L
Endesa: 9M 2024 P&L €mn Gx+Sx Conventional Gx Renewables Retail Endesa X Dx Structure Adjustments TOTAL adjustments (1) Income 5,471 992 11,699 246 (4,470) 1,946 302 (421) 15,765 Procurements and services (4,437) (101) (9,177) (129) 4,437 (109) (203) 103 (9,616) Income and expenses from energy deriv
Slide 24: Endesa: 9M 2023 P&L
Endesa: 9M 2023 P&L €mn Gx+Sx Conventional Gx Renewables Retail Endesa X (1) Dx Structure Adjustments TOTAL adjustments Income 8,435 892 15,492 281 (7,644) 1,890 348 (483) 19,211 Procurements and services (4,927) (91) (14,167) (160) 7,618 (116) (209) 114 (11,938) Income and expenses from energy deri
Slide 25: Fixed costs evolution
Fixed costs evolution Fixed costs(1) evolution (€mn) -3% 1,556 1,507 756 726 -4% 1,010 971 -4% -210 -190 9M 2023 9M 2024 Personnel Costs O&M Costs Capitalized costs 9M 2024 Results - Madrid, 30 October 2024 (1) Fixed costs : Total fixed costs in nominal terms (net of capitalizations). Rounded figure
Slide 26: Financial debt maturities and credit metrics
Financial debt maturities and credit metrics Gross financial debt maturity(1) (€bn) Financial debt KPIs 8.7 9M 2024 Coverage of financial debt 31 maturities (months) 3.5 Average life of financial debt 3.7 (years) 3.6 Liquidity (€bn) 8.9 5.1 3.0 0.6 0.5 0.6 2024 2025 2026 2027+ Bank Debts & Others In
Slide 27: Installed capacity and output
Installed capacity and output Total net installed capacity (MW) Total output (1) (GWh) 9M 2024 2023 Var. (%) 9M 2024 9M 2023 Var. (%) Mainland 17,177 16,984 +1% 37,588 37,496 +0% Renewables(2) 10,092 9,899 +2% 13,861 10,159 +36% Hydro 4,746 4,746 0% 5,891 3,488 +69% Wind 2,893 2,884 +0% 4,712 4,388
Slide 28: Grids: operational parameters
Grids: operational parameters Distributed energy (TWh) TIEPI(1) (min.) Losses(2) (%) +2% -3% flat 104 106 38.2 37.0 9.5 9.5 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 Energy to own customers(2) (TWh) 81 80 -1% (1) Tiempo de Interrupción Equivalente a la Potencia Instalada (Installed Capacity Eq
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: Disclaimer - Alternative Performance Measures
Disclaimer Alternative Performance Measures This presentation includes certain alternative performance measures (“APMs”) for the purposes of Commission Delegated Regulation (EU) 2019/979, of March 14, 2019 and as defined in the Guidelines on Alternative Performance Measures issued by the European Se
Slide 31: IR Team - Contact us
IR Team Imagen que contiene captura de pantalla Contact us Descripción generada con confianza muy alta 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 Herran