Endesa S.a. · BME:ELE
Endesa — Endesa Sa Madrid — FY 2024 Earnings Presentation
41 slides from Endesa's earnings presentation, Feb 27, 2025
Slide 1: 2024 Consolidated Results
2024 Consolidated Results February 27th, 2025
Slide 2: FY 2024 Consolidated results
FY 2024 Consolidated results José Bogas CEO
Slide 3: Overdelivery of FY2024 targets
Overdelivery of FY2024 targets Economic Earnings Cash performance evolution generation EBITDA Net Income FFO 5.3 €bn 1.9 €bn 3.6 €bn +40% vs PY +2.5x vs PY 2024 Dividend(1): 1.32 €/share Cash generation: Above 6% Dividend yield FFO/ND at 38% (1) 2024 Dividend per share: 1.3177 € based on 70% payout
Slide 4: Commodities market stabilization underpins a cycle turnaround
Commodities market stabilization underpins a cycle turnaround Average Iberian power pool prices Gas TTF spot prices (€/MWh) CO2 spot prices (€/t) (€/MWh)(1) 100 80 2023 Average: 83 €/t 2023 Average: 41 €/MWh 2024 Average: 65 €/t 70 90 -28% 2024 Average: 34 €/MWh 60 80 50 - 16% 70 - 22% 40 60 87 30 6
Slide 5: Regulatory update
Regulatory update Nuclear Congress urges the government to address nuclear fleet life extension businesses Liberalized Temporary energy levy (1.2%) RDL 10/2024 Extension for 2025 is rejected due to lack of parliamentary support Final order pending after conclusion of public consultation period. Auct
Slide 6: Networks: key enabler for upcoming Energy Transition challenges
Networks: key enabler for upcoming Energy Transition challenges Gross investment (€bn) RAB(1) (€bn) KPIs Resilience of our quality Flat indicators 2023 2024 11.5 11.5 Need to increase investment Distributed path in grids: 136 139 +2% To meet PNIEC challenging 31% energy (TWh) objectives 41% 2024 To
Slide 7: Reshaping our generation mix towards higher value-added assets
Reshaping our generation mix towards higher value- added assets Installed capacity(1) (GW) Production(2) (TWh) +1% -30% 86% CO2 free output 17.0 0.2 17.2 14% +25% renewable output -3% 7.7 TWh of hydro output 9.9 10.1 +2% (+51% yoy) 49 50% Flat vs. FY 2023 Hydro assets acquisition 3.3 3.3 FLAT 36% cl
Slide 8: Supply business resilient to competitive pressure
Supply business resilient to competitive pressure Customers(1) (mn) Sales(2) (TWh) -3% -4% Very competitive environment linked to 6.9 6.7 78 74 price evolution, with net 22 customer gain in Q4 22 B2B Churn rate at record high 6.6 6.4 B2C Progressing in our strategy 56 52 of focusing on highest value
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 77% +5% 83 12 55 98% 52 60 17 80% -24% 71 TWh 11 Free sales 7 -5% vs 2023 55% 54 42 +3% Output Sa
Slide 10: Gas margin run rate recovery after extraordinary negative context
Gas margin run rate recovery after the extraordinary negative context of previous year Total volumes(1) (TWh) Gas unitary margin(2) (€/MWh) Volumes hedged(3) (%) -8% 84 78 ~4 20 95% 15 75% ~-3 65 62 21% ~-5 Gas award 2023 2024 ~-8 2025 2026 2027 2023 2024 Gas margin above guidance: Portfolio Sales C
Slide 11: FY 2024 Financial results
FY 2024 Financial results Marco Palermo CFO
Slide 12: Sound results exceeding targets for 2024
Sound results exceeding targets for 2024 €bn EBITDA Net Income FFO +40% +2.5x -1.1 €bn 5.3 1.9 4.7 3.8 1.4 Q4 0.5 Q4 1.9 3.6 0.4 0.7 0.9 Q4 9M 1.4 9M 3.4 3.9 9M 1.1 2.8 2.7 9M Q4 -0.3 12 2023 2024 2023 2024 2023 2024 +2.1x +1.2 €bn Above guidance Net Ordinary Adjusted Income(1) 1.0 2.0 FFO(2) 2.9 4.
Slide 13: +40% EBITDA driven by strong delivery across all business lines
+40% EBITDA driven by strong delivery across all business lines €bn EBITDA by business(1) +1.5 €bn +40% Conv. Gx: 5.3 YoY 2023: -0.5 €bn gas 0.2 arbitration award 0.3 0.3 1.3 +78% 3.8 0.2 0.6 Structure&Adj.: 0.7 2023: 1.0 +19% • 1.2% levy: -208 €mn 0.8 Gx+Sx: +1.0 €bn (+45%) 2024: • 1.2% levy: -138
Slide 14: Sound grids EBITDA improvement up by 15%
Sound grids EBITDA improvement up by 15% €bn EBITDA +0.3 €bn +15% 0.1 2.0 Gross margin increase 0.2 1.7 mainly from 2020 retribution parameters update Fixed costs and Others: • Adjustment in the provision accounted in 2023 for digitalization • Reversal of provisions for contingencies 2023 Gross marg
Slide 15: Gx&Sx EBITDA up by 45%, boosted by gas business recovery
Gx&Sx EBITDA up by 45%, boosted by gas business recovery €bn EBITDA +1.0 €bn +45% 2023: -0.5 €bn gas Gas margin: arbitration award Flat Flat + Normalization after the extraordinary negative in 2023 1.0 Flat Stabilization of free power Gross margin +1.0 €bn margin: 3.3 - Thermal and Short Position 2.
Slide 16: Progressing on our cost contention plan
Progressing on our cost contention plan Fixed costs evolution (€bn) -5% 2.2 -0.1 0.1 -0.1 2.1 1.1 1.0 -13% 1.4 1.4 -2% -0.3 -0.3 (1) 2023 Personnel provisions CPI&Growth Efficiencies 2024 Personnel Costs O&M Costs Capitalized costs FY 2024 Results - Madrid, 27 February 2025 (1) Includes personnel re
Slide 17: Net Income up by a sound 2.5x yoy
Net Income up by a sound 2.5x yoy Profit & loss (€bn) 2023 2024 Δ yoy Δ% EBITDA 3.8 5.3 1.5 40.1% D&A and Provisions increase mainly due to investment effort D&A and Provisions (2.1) (2.2) (0.1) Financial results & Others (0.6) (0.5) 0.1 Improved Financial results driven by lower average gross finan
Slide 18: Outstanding cash generation
Outstanding cash generation… €bn Working capital & others –0.4 €bn(1) 5.3 -0.3 Flat -0.4 4.1 -0.5 €bn Gas -0.6 3.6 arbitration -0.4 EBITDA Provisions paid Regulatory (2) Remaining Income Taxes Net Financial FFO FFO adj.(4) working capital working capital Expenses (3) & others 2023 3.8 -0.3 1.8 0.7 -
Slide 19: Supports financial sustainability ratios
… supports financial sustainability ratios €bn Net financial debt (1) Gross financial debt (1) -11% -23% 4.4 €bn 3.3 €bn Sources of funds Uses of funds 13.7 10.4 Regulatory 0.6 9.3 3.3 working capital 10.5 3.6 1.1 0.6 1.2 2.2 0.8 9.9 10.4 8.7 9.3 2023 FFO Partnership Cash Capex(2) Dividends 2024 202
Slide 20: Financial debt maturity and credit metrics
Financial debt maturity and credit metrics Gross financial debt maturity(1) (€bn) 6.3 • Coverage of 35 months of debt maturity • Average life of financial debt: 4.1 years • 6.5 €bn of liquidity 3.1 Long-term ratings Issuer credit rating BBB Baa1 BBB+ 0.6 0.6 2025 2026 2027 2028+ FY 2024 Results - Ma
Slide 21: FY 2024 Closing remarks
FY 2024 Closing remarks José Bogas CEO
Slide 22: +32% DPS versus previous year
+32% DPS versus previous year €/share DPS proposal 2024: 1.32 €/share. Final dividend (0.82 €/sh.) to be paid 32% in July 2025 (1) 1.32 +32% increase versus 2023 ~1.2 +10% above guidance (+20% above 1.0 1.0 initial target in CMD 2024-26) Minimum Dividend policy 2025-27: DPS • 70% payout • Guaranteed
Slide 23: Closing remarks
Closing remarks Outstanding results in 2024 providing sound cash generation and supporting healthy credit metrics Ample financial capability to boost Progressing on the strategic drivers of 2025-27 plan investment in Energy Transition Investment acceleration requires a supportive regulatory scenario
Slide 24: Annexes
FY 2024 Annexes endcesa
Slide 25: P&L 2024 vs. 2023
P&L 2024 vs. 2023 €mn 2024 2023 % Var. Income 21,307 25,459 -16% Procurements and services (13,054) (16,312) -20% Income and expenses from energy derivatives (908) (3,172) -71% Gross margin 7,345 5,975 +23% Fixed operating costs and other results (2,052) (2,198) -7% EBITDA 5,293 3,777 +40% D&A (2,22
Slide 26: Endesa: 2024 P&L
Endesa: 2024 P&L €mn Gx+Sx Conventional Gx Renewables Retail Endesa X Dx Structure Adjustments TOTAL adjustments (1) Income 7,984 1,420 16,096 349 (6,983) 2,602 399 (560) 21,307 Procurements and services (6,206) (171) (13,454) (187) 6,963 (146) 9 138 (13,054) Income and expenses from energy derivati
Slide 27: Endesa: 2023 P&L
Endesa: 2023 P&L €mn Gx+Sx Conventional Gx Renewables Retail Endesa X Dx Structure Adjustments TOTAL adjustments (1) Income 11,339 1,216 20,343 382 (10,101) 2,466 501 (687) 25,459 Procurements and services (7,400) (164) (18,377) (217) 10,064 (166) (209) 157 (16,312) Income and expenses from energy d
Slide 28: Installed capacity and output
Installed capacity and output Total net installed capacity (MW) Total output (1) (GWh) 2024 2023 Var. (%) 2024 2023 Var. (%) Mainland 17,216 16,984 +1% 48,769 48,896 -0% Renewables(2) 10,131 9,899 +2% 17,792 14,212 +25% Hydro 4,746 4,746 0% 7,660 5,083 +51% Wind 2,893 2,884 +0% 6,374 6,392 -0% Solar
Slide 29: ESG annexes
eEndesa ESG annexes
Slide 30: Sustainability Plan 2025-2027
Sustainability Plan 2025-2027 We continue on the path of sustainable STAKEHOLDER development by confirming our commitments to GROUPS ENVIRONMENTAL the fight against climate change and the NATURE conservation of biodiversity. We take into account stakeholder needs and AMBITION priorities to ensure th
Slide 31: Environmental
Environmental We keep our decarbonisation strategy aligned with the 1.5°C scenario and set targets as a long-term climate strategy. Shift in generation mix towards higher value-added assets increasing capacity by 32% in 2027 vs. 2024. Total absolute emissions (MtCO2eq) PLAN 2025-27 PLAN 2024-26 TARG
Slide 32: Environmental
Environmental Appropriate environmental management to improve Public commitments to biodiversity and ecosystem protection air quality through the reduction of pollutant by minimising the impact of Endesa's sites emissions, the responsible use of water resources and the minimisation of waste producti
Slide 33: Environmental
Environmental Increased investment in networks to meet the ambitious Electrification of uses and commitment to efficient targets of the PNIEC and as a key element for the energy energy consumption for customers. transition, integrating new renewable capacity and meeting new demand needs. PLAN 2025-2
Slide 34: Social
Social Diversity and training as key elements in our people Improving quality, accessibility and the inclusion of strategy sensitive groups PLAN 2024-26 PLAN 2025-27 PLAN 2024-26 PLAN 2025-27 TARGET TARGET TARGET TARGET 2025 2027 2024 2026 2025 2027 2024 2026 Women in managerial Customer satisfactio
Slide 35: Social
Social Creating shared value in the communities where we Extending the commitment to sustainability to our operate and in the business through projects for socio- suppliers and contractors throughout the entire economic growth, education and energy access. procurement process. PLAN 2025-27 PLAN 2024
Slide 36: Governance
Governance Promotion of best practices in good governance, diversity and ethics training for employees. Implementation of the actions defined in the action plan associated with human rights due diligence. PLAN 2025-27 PLAN 2024-26 PLAN 2025-27 PLAN 2024-26 TARGET TARGET TARGET TARGET 2025 -2027 2024
Slide 37: Growth accelerators
Growth accelerators Management and mitigation of cyber risks to conduct the business securely and effectively. Commitment to the digitalization of assets, customers and our people. High level of sustainable funding to achieve the ambitious targets. PLAN 2025-27 PLAN 2024-26 PLAN 2025-27 PLAN 2024-26
Slide 38: Key ESG ratings scores
Key ESG ratings scores The most complete in the 3 ESG The most relevant for The most relevant in governance 2nd most relevant for investors, with focus issues dimensions investors on ESG controversy analysis 86 84 AAA BBB AAA 16.4 14.7 B B C 2023 2024 2023 2024 2023 2024 2023 2024 Ranking: 9/264 Ele
Slide 39: 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 40: 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 41: IR Team
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