Endesa S.a. · BME:ELE
Endesa — Investor Day (May 2011)
104 slides from Endesa's investor day presentation, May 17, 2011
Slide 1: Endesa Analyst Day
endesa analyst day 17th May 2011
Slide 2: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 3: Endesa 1Q 2011 results
17 | 05 | 2011 endesa 1Q 2011 results Mr. Andrea Brentan
Slide 4: Market context in 1Q 2011
consolidated results 1Q 2011 Market context in 1Q 2011 Demand evolution 11.4% +3.4%(2) Spain: higher Latin America: 8.6% industry demand strong growth in compensated by Chile, Peru and lower domestic 4.2% Argentina, moderated and services 2.5% in Brazil and demand 1.1%(1) Colombia due to -0.4% weath
Slide 5: Results affected by perimeter change and non-recurring items
consolidated results 1Q 2011 Results affected by perimeter change and non-recurring items €M 1Q 2011 1Q 2010 Change Like-for-like Revenues 8,363 7,693 +9% Gross margin 2,735 2,752 -1% EBITDA 1,775 1,879 -6% +5% Spain&Portugal&Others 1,094 1,174 -7% -0%(1) Endesa Latin America 681 705 -3% +12%(2) EBI
Slide 6: Forward sales strategy
consolidated results 1Q 2011 Forward sales strategy Spain & Portugal Latin America (% estimated mainland output hedged) (% estimated output hedged) 100% Contracting level in Latin America that optimizes margin 75-80% 65-70% and risk exposure 45-50% Apr-Dec 2011 2012 Apr-Dec 2011 2012 32% of the gene
Slide 7: Regulation update
consolidated results 1Q 2011 Regulation update • Last resort tariff: 9.8% average increase from January 1st • Access tariff: 7.6% average increase from April 1st Spain Spain • Domestic coal Royal Decree in force since February 28th • Distribution remuneration based on investments in force since Dece
Slide 8: Securitization process well advanced
consolidated results 1Q 2011 Securitization process well advanced Total amount (€M(1)) to be transferred to Securitization transactions since securitization fund (FADE) January 2011 • Oversubscription: €2.5 bn 13,694 1ststtranche demand (+25%) 1 tranche (€2 (€2bn) bn) • Coupon: 4.8% (Mid Swap +2.9%)
Slide 9: On track to achieve synergy programs FY 2011 targets
consolidated results 1Q 2011 On track to achieve synergy programs FY 2011 targets €M Endesa Synergy Plan Endesa Zenith Plan FY 2011 840 100% FY 2011 137 100% target target Distribution 31% Distribution 43% Generation & energy management 36% Generation & energy management IT & Others 48 57% 212 33% A
Slide 10: A sound financial position
consolidated results 1Q 2011 A sound financial position Net debt evolution in 1Q 2011 (€M) 15,336 1,014 2,811 12,657 1.7x Enersis 4,188 621 226 751 4,082 1.3x Pending 6,143 regulatory Tariff Def. -€320 M assets Spain& Securitization: €3,116 M Portugal 11,148 & others Disposals €15 M Debt net of 8,57
Slide 11: Spain&Portugal&Others 1Q 2011
spain&portugal&others 1Q 2011 Mr. Paolo Bondi
Slide 12: Highlights in 1Q 2011
spain&portugal&others 1Q 2011 Highlights in 1Q 2011 10% generation output increase on a like-for-like basis (7% including renewables in 1Q 2010) 71% increase in wholesale prices resulted in higher energy purchases cost Higher thermal gap (lower contribution from hydro and nuclear) and implementation
Slide 13: Decrease in results due to disposals
spain&portugal&others 1Q 2011 Decrease in results due to disposals 1Q 2011 1Q 2010 Change Like-for-like €M Revenues 5,922 5,609 +6% Gross margin 1,642 1,760 -7% EBITDA 1,094 1,174 -7% -0%(3) EBIT 767 867 -12% Net finance expenses(1) 53 213 -75% Net attributable income 524 1,364 -62% Net attributable
Slide 14: Gross margin impacted by asset disposals
spain&portugal&others 1Q 2011 Gross margin impacted by asset disposals €M 1,760 +8% 1,642 -11% -7% 1Q 2010 Liberalized business Regulated business Perimeter 1Q 2011 Higher sales to final Distribution Perimeter (renewables, customers gas, transmission and Non-mainland systems Higher unit fuel costs E
Slide 15: Latin America 1Q 2011
latin america 1Q 2011
Slide 16: Highlights in 1Q 2011
endesa latin america 1Q 2011 Highlights in 1Q 2011 Growth in distribution sales (+3.7%) with outstanding performance in Chile (+9.6%) and Peru (+7.7%) CIEN: recognition by ANEEL as a regulated asset Growth in generation volumes (+2.5%) despite drought in Chile compensated by higher hydro output in C
Slide 17: Positive results stripping out one-off in Colombia
endesa latin america 1Q 2011 Positive results stripping out one-off in Colombia €M 1Q 2011 1Q 2010 Change Revenues 2,441 2,084 +17% Gross margin 1,093 992 +10% EBITDA 681 705 -3% EBIT 551 536 +3% Net finance expenses 100 107 -7% Net income 324 355 -9% Net attributable income 145 171 -15% • Stripping
Slide 18: Distribution & Generation EBITDA in Latin America
endesa latin america 1Q 2011 Distribution & Generation EBITDA in Latin America Ebitda Generation Ebitda Distribution €M +19% stripping out net worth +6% stripping out net worth tax in Colombia tax in Colombia +1% 376 380 -6% 337 316 36 39 +8% Argentina 15 51 52 Brazil 4 -73% +2% 175 162 -7% Chile 16
Slide 19: Endesa strategic plan 2011-2015
17 | 05 | 2011 endesa strategic plan 2011-2015 Mr. Andrea Brentan
Slide 20: Spain&Portugal&Others strategic plan 2011-2015
17 | 05 | 2011 spain&portugal&others strategic plan 2011-2015
Slide 21: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 22: Main features of Spanish generation market vs. other European markets
spain&portugal&others: market context Main features of Spanish generation market vs. other European markets(1) Interconnection rate (%) (2) Contribution from renewables (%) (3) Reserve margin (%) (4) 44.0 33.2 26.0 23.1 13.7 25.8 14.2 7.3 17.8 11.1 7.2 17.0 7.1 3.2 4.4 3.3 2.9 3.0 Weight from fixed
Slide 23: Expected evolution in the generation market
spain&portugal&others: market context Expected evolution in the generation market Interconnection rate (%) (1) Contribution from renewables (%) (2) Thermal gap (%) (3) 8.8 37.6 30.5 30.6 7.5 30.1 1 2 2010 2015 2010 2015 2010 2015 1 2 1 2 Load factor (%) Reserve margin (%) Wholesale prices (€/MWh) 29
Slide 24: Spain structurally long system with well developed forward market
spain&portugal&others: market context Spain structurally “long” system with well developed forward market Total system generation/sales (mainland 2011e, gross TWh) Fundamentals of the supply strategy 100% 100% Independent • IPP and RW companies without 7% 10% generators significant presence in the s
Slide 25: Generation market: expected developments
spain&portugal&others: market context Generation market: expected developments • Output excess from renewables during off-peak hours • New pumping capacity: New − Uses the base load energy Newpumping pumping • In 2010, the System Operator under excess capacity capacity some circumstances had to rest
Slide 26: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 27: Towards tariff sustainability: expected deficit evolution 2011-2013
spain&portugal&others: regulation Towards tariff sustainability: expected deficit evolution 2011-2013 Regulated systems costs 2009 (€bn) Deficit evolution without correcting measures (€ bn) 19 13 10 16.5 12 8 6 5 5.5 4 3 2010 2011 2012 2013 6.5 2 5.5 1 FV 2.6 4.5 Others 3.9 Deficit target according
Slide 28: The CO2 challenge: Endesa positioning
spain&portugal&others: regulation The CO2 challenge: Endesa positioning Endesa mainland CO2 balance (2010-2015) Mtn Flexibility banked from Ph II: ~24 Mtn CERs Flexibility (CERs 14 Mtn, free EUAs from NAP 10Mtn) available in Ph II: + Additional CERs Flexibility Ph III: ~14 ~30 Mtn Mtn 15.7 15.7 • 20
Slide 29: European Industrial Emissions
spain&portugal&others: regulation European Industrial Emissions Capacity subject to EIED(1) (GW) • New emissions value for thermal power plants (> 50 MW) after 2016 Emissions thresholds for Europe (mg/Nm3) 37.5 GW TODAY FUTURE Currently Current plants New power plants (GIC Directive) under operation
Slide 30: Nuclear scenario post Fukushima
spain&portugal&others: regulation Nuclear scenario post Fukushima Agreement to carry out "stress tests" for all European nuclear power plants before end 2011 • EC will define the stress test content based on European Regulators criteria. The Nuclear Stress Stresstest test Industry(1) and the Europea
Slide 31: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 32: Operational excellence project in nuclear
spain&portugal&others: operating excellence and synergies programs Operational excellence project in nuclear Availability(1): Endesa vs. USA, World and Spain (%) 93 Endesa plan towards nuclear operational excellence 88 Availability % Status 83 • Increased selected 9 Refueling 78 investments Project
Slide 33: Operating excellence project in distribution
spain&portugal&others: operating excellence and synergies programs Operating excellence project in distribution 5 Project pillars Status 1. Restructuring and reorganization (Proyecto Uno) • Progress in line with plan – Functional reorganization 2. Cash-cost optimization • Ahead of the plan – Opex&Ca
Slide 34: Spain&Portugal: operating excellence in supply
spain&portugal&others: operating excellence and synergies programs Spain&Portugal: operating excellence in supply • Maintain total market share ~40% (~36% in the liberalized market) • Profitable customers loyalty Commercial Commercial • Cost capture proportional to customer value plan planfor for el
Slide 35: Spain: 2012 synergies and Zenith targets
spain&portugal&others: operating excellence and synergies programs Spain: 2012 synergies and Zenith targets 100% Concept Main Maininitiatives initiatives • Cost reduction in metering activities due to the implementations of digital 38% Distribution meters • Reduction of physical losses • Organizatio
Slide 36: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 37: Strategic priorities for Spain&Portugal (2011-2015)
spain&portugal&others: strategic priorities Strategic priorities for Spain&Portugal (2011-2015) Regulation • Regulation management Synergies • Synergies Plan: efficiencies, Zenith, internal efficiencies and BPS • Improvement projects: Operational excellence 1. Security 3. Distribution 2. Nuclear 4.
Slide 38: Business analysis Spain&Portugal&Others
17 | 05 | 2011 business analysis spain&portugal&others Mr. José D. Bogas
Slide 39: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 40: Mainland demand & renewables output evolution
spain&portugal&others: market context Mainland demand & renewables output evolution Mainland demand (%) Mainland demand (TWh) ΔGDP -0.3 0.3 1.2 1.8 2.2 TWh +8.5% CAGR: 1.7% CAGR: +1.6% 290 280 270 +2.5% +22 282 260 +3.3% 260 250 240 230 2010 2011 2012 2013 2014 2015 2010 2015 Mainland special regime
Slide 41: Mainland capacity evolution
spain&portugal&others: liberalized business Mainland capacity evolution MW 18,105 (1.095) 17,325 (270) 400 3.124 400 (234) 19 (nuclear) 3.724 1.095 2.872 2.872 2.423 2.153 3.666 3.452 4.725 5.125 2010 Out In 2015 Hydro Nuclear Domestic coal Imported coal Oil-Gas CCGTs • Market share above 30% in the
Slide 42: Pumped storage opportunities
spain&portugal&others: liberalized business Pumped storage opportunities Rational Rationalfor fornew newpumping pumping capacity capacity Pumping Pumpingadvantages advantages • Use excess energy from renewables during • Benefit from prices volatility of the base load hours hourly curve • Competitive
Slide 43: Spain mainland generation mix evolution 2011-2015
spain&portugal&others: liberalized business Spain mainland generation mix evolution 2011-2015 Mainland generation mix (TWh) (2011-15 average) 55-65 175-185 • In 2011-15 no new ordinary regime power plants are expected apart from pumped Coal + CCGT 38% storage 50% • Higher exposure to hydro and nucle
Slide 44: Short position evolution
spain&portugal&others: liberalized business Short position evolution Sales (TWh) to liberalized market(1) 81 • Optimization of energy purchases & 75 own production Energy Energy 26-16 purchases • Continuous monitoring of value at purchases 31-23 32-20% 41-31% risk • Valuable position of own thermal
Slide 45: Revenues and costs of energy 2011-2015
spain&portugal&others: liberalized business Revenues and costs of energy 2011-2015 2011e 2015e €/MWh 58-62 67-72 Others 3% 1% Coal RD 12% 4% Others 5% 99% 35% Energy Underlying 85% 35% purchases 26% 31% Fuel + CO2 Revenues Costs Revenues Costs • 2011: domestic coal RD, NAP • 2015: resilient unit mar
Slide 46: Gas: current position and strategy
spain&portugal&others: liberalized business Gas: current position and strategy • Consolidate our 2nd position player in Spain: Gas − Maintain position in Large Consumers of around 15% of market share Gassupply supply plan plan − Moderate growth in retail clients in Spain • Large consumers portfolio
Slide 47: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 48: Current distribution remuneration methodology
spain&portugal&others: regulated businesses Current distribution remuneration methodology Investment Investmentexecution execution • Full application of the new methodology (effective from Verification 1 New December 2009) of investment Planning of New 5 carried out investment methodology methodolog
Slide 49: Introduction of domestic coal Royal Decree (1221/2010)
spain&portugal&others: regulated businesses Introduction of domestic coal Royal Decree (1221/2010) TWh(1) First month of operation: cost for the system 3.99 Imported coal €28.9 M (1.35€/MWh) -61% Limited impact on market price 1.54 Until end of April, 82% of the displaced production was import
Slide 50: Non mainland systems: brief description and assumptions
spain&portugal&others: regulated businesses Non mainland systems: brief description and assumptions Growing demand (TWh) 17.2 • Although this market and activity are 15.0 liberalized, Endesa continues as the CAGR 10.3 only market operator Canary +2.3% Islands 9.0 • Mid to long term forecasts indicat
Slide 51: Ministerial Orders for SEIE generation have created a stable regulatory framework
spain&portugal&others: regulated businesses The Ministerial Orders for SEIE generation have created a stable regulatory framework • Coverage of: • Depreciation (25 years for fossil fuel, 65 years for hydro) Investment Investment • Financial remuneration: 10Y govt. bonds + 3% applied on net values •
Slide 52: Best practice sharing with Enel
spain&portugal&others: operating excellence and synergies programs Best practice sharing with Enel Costs and efficiency improvements, predictable maintenance Coal and coal maintenance Large overhauls, predictable maintenance, inventories Generation Generation CCGT management and equipment maintena
Slide 53: Latin America strategic plan 2011-2015
17 | 05 | 2011 latin america strategic plan 2011-2015 Mr. Andrea Brentan
Slide 54: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 55: Market context in Latin America
latin america: market context Market context in Latin America GDP 2011e GDP 2012e 7.5% 5.9% 6.0% Expected 5.8% Expected 4.9% 4.5% 4.6% 4.5% 4.6% 4.7% 4.2% GDP GDP 4.1% (1) 2.4% 2.6% growth growth(1) Chile Brazil Colombia Peru Argentina Latam (2) Advanced economies Chile Brazil Colombia Peru Argentin
Slide 56: Market structure overview
latin america: market context Market structure overview Markets with audited costs benefit from higher level of transparency The regulatory Technical calculation of capacity payment framework for avoids discrimination among technologies Generation Generation generation fosters stable functioning of
Slide 57: Generation: capacity payments
latin america: market context Generation: capacity payments Capacity Payment • Set by the regulator • It corresponds to an efficient investment cost of a gas US$/MWh US$/MW/y turbine (O&M included) Argentina Argentina 4(1) 35,000 Peru Example Turbine PG7241FA – 171 MWUS$ 49M Chile Chile 16 112,000 O
Slide 58: Strong organic growth: Endesa generation project pipeline
latin america: market context Strong organic growth: Endesa generation project pipeline 1,403 MW Chile Environmental 1,403 MW permits approved 1,868 MW Peru Chile 188 MW Brazil Environmental 300 MW 740 MW Chile permits processing 640 MW Brazil Chile 912 MW 496 MW 8,841 MW Peru Chile Colombia Chile C
Slide 59: Distribution: attractive profitability
latin america: market context Distribution: attractive profitability Real pre-tax in Nominal after US 10Y bond yield local currency tax in US$ + EMBI country (1) Chile Chile 10% 11% 4.4% 10% 11% 4.4% Colombia Colombia 14% 14% 13% 13% 5.1% 5.1% Peru Peru 12% 12% 4.6% 12% 12% 4.6% Brazil Brazil 15% 15
Slide 60: Strong organic growth: Endesa customers portfolio
latin america: market context Strong organic growth: Endesa customers portfolio Energy distributed by country (TWh) Number of TWh Number of Chile Brazil Colombia Peru Argentina CAGR TWh customers(1)(1) CAGR increase customers 2010-2015 increase increase 2010-2015 2010-2015 increase 83.8 2010-2015 20
Slide 61: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 62: Operating excellence in distribution: losses reduction
latin america: operating excellence and synergies programs Operating excellence in distribution: losses reduction 2010 2015 target 16.8% 16.4% 10.5% 10.0% 8.2% 8.3% 8.2% 7.2% 5.8% 5.3% Chile Brazil Colombia Peru Argentina Continues effort to further reduce losses in all countries 62
Slide 63: Latin America: best practice transfer for I+D+i projects
latin america: operating excellence and synergies programs Latin America: best practice transfer for I+D+i projects Best Bestpractice practice Opportunities Opportunities • Brazil and Chile as priority countries. Digital Digital • Enel experience and technology • Working group to focus on: business
Slide 64: Latin America: 2012 synergies and Zenith targets
latin america: operating excellence and synergies programs Latin America: 2012 synergies and Zenith targets 100% Concept Main Maininitiatives initiatives • Losses reduction (10.4 % on average in 2012) 55% Distribution 2012 target • Operational efficiency improvement: operational and maintenance cost
Slide 65: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 66: Proven experience in managing utilities in Latin America
latin america: historical presence Proven experience in managing utilities in Latin America Key milestones in the region Endesa Brasil-IFC Piura 2011 CIEN & Additional Fortaleza 2011 stake Ampla Take over & Chilectra. 2003 Enersis - Endesa Chile 2000 32% Enersis Coelce 1999 Emgesa Dock-Sud Etevensa
Slide 67: Shareholding structure
latin america: historical presence Shareholding structure Endesa Improvements already done and others underway Spain EndesaLatin LatinAmerica America 60,62% 59.98% • Reduction of companies (from 150 after Endesa’s Enersis* 99.08% take over to ~80 nowadays) Chile E.Chile* Chilectra* • Piura tender of
Slide 68: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 69: Strategic guidelines
latin america: strategic priorities Strategic guidelines Operational Corporate Generation Distribution excellence strategy • Growing demand • Stable regulatory • Synergies project • Study aiming at and increasing framework and returns defining options to • Zenith project competition: above WACC: imp
Slide 70: Businesses analysis Latin America
17 | 05 | 2011 businesses analysis latin america Ignacio Antoñanzas
Slide 71: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 72: Focus on projects under construction
latin america: liberalized businesses Focus on projects under construction Bocamina II, coal, Chile Talara, OCGT dual fuel, Peru • Location: next to the existing Bocamina I • Location: close to coal-fired plant Malacas power station 132MW (Piura) • Installed capacity: 370 MW • Installed capacity: 19
Slide 73: Focus on high success probability projects
latin america: liberalized businesses Focus on high success probability projects Los Condores, hydro, Chile Neltume, hydro, Chile Curibamba, hydro, Peru • Installed capacity: 150 MW • Estimated FID(1): 2Q2012 • Investment: € ~500 million Project • Average annual output: 600 area GWh, load factor: 46
Slide 74: Focus on high success probability projects: Aysen
latin america: liberalized businesses Focus on high success probability projects: Aysen Aysén, hydro, Chile • Installed capacity: 2,750 MW (5 hydro plants) • Output: 18,430 GWh/year (load factor 77%) The The • Ownership: 51% & 49% Colbun project project • 57% of output corresponds to Endesa in excha
Slide 75: Projects map in Latin America
latin america: liberalized businesses Projects map in Latin America Projects in Peru Projects in Colombia Name Technology MW Name Technology MW Curibamba Hydro 188 El Quimbo Hydro 400 Hydro 940 Thermal (CCGT) 300 Hydro 1,301 Pipeline Pipeline Windfarm 98 Minihydro 156 Minihydro 107 Total 1,857 Total
Slide 76: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 77: Distribution: Strong organic growth
latin america: regulated businesses Distribution: Strong organic growth Clients growth (thousands) Organic growth 15,170 • Growth as result of urban development 216 99 in areas where we operate 467 213 13,273 902 Increase in electricity demand +14% program • Sale of products to stimulate increase of
Slide 78: Distribution: business profitability
latin america: regulated businesses Distribution: business profitability RAB 2010 (US$ Bn) Regulated revenue(2) 2010 (US$/MWh) Ampla 67% 2.9 Ampla 67 Coelce 60% 1.8 Coelce 66 Codensa 2.9 Edelnor 1.1 Codensa 49 Chilectra 2.0 Edelnor 35 Edesur 2.0(1) Chilectra 27 EEC 0.3 Edesur 17 Gross RAB 2010 Net R
Slide 79: Distribution: tariff reviews calendar
latin america: regulated businesses Distribution: tariff reviews calendar 2011 2012 2013 2014 2015 Chilectra Distribution Subtransmition Edelnor Codensa Coelce Ampla Cien Estimated Edesur Tariff review process: clear roadmap ahead 79
Slide 80: Brazil: expected impact of 3rd cycle distribution tariff review
latin america: regulated businesses Brazil: state of the art and expected impact of 3rd cycle distribution tariff review Coelce: Coelce:revision revisionapplying applyingfrom fromApril April2011 2011- -Ampla: Ampla:tariff tariffreview reviewscheduled scheduledinin2014 2014 The ANEEL published on Apr
Slide 81: CIEN: recognition as a regulated asset
latin america: regulated businesses CIEN: recognition as a regulated asset In April 19 CIEN signed the operational contracts with ONS. Process concluded. Gross Gross RAB RAB (US$ (US$ bn) bn) 1.06 • Fixed by Aneel (vs. book value of €186 M at 31st Dec 2010) Period Period (years) (years) 2020 & 2022
Slide 82: Argentina: regulation update
latin america: regulated businesses Argentina: regulation update Generation: Transitional agreement for 2011 between Government and generation companies (Dec 2010): • Hydro: 3 3 Capacity Capacity payment payment Higher capacity • CCGT: 3 6.9 (US$/MWhph) (US$/MWhph) remuneration • Steam turbine: 3 8.
Slide 83: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 84: Chile
latin america: analysis by country Chile Country demand (TWh) Dry reserve margin 54 • Demand: 5% CAGR over 2010-2015 36% Electricity Electricity 42 • Addition of 2.200 MW over 2010-15, of which demand demand 23% 1,500 MW are from coal power plants and 700 recovery recovery MW are hydro plants (SIC)
Slide 85: Portfolio projects situation in Chile
latin america: analysis by country Portfolio projects situation in Chile HidroAysén Gx 1,403 MW 1.403 MW Environmental 6,219 MW permits Los Cóndores approved 150 MW VC Pta. Alcalde 1 y 2 740 MW Neltume 1,380 MW 490 MW Environmental permits processing Renaico VC Celta 2 88 MW Piruquina 250 MW 8 MW Ca
Slide 86: Brazil
latin america: analysis by country Brazil Country demand (TWh) Dry reserve margin 652 • 4.5% CAGR over 2010-2015. 521 Electricity Electricity • Strong need of new capacity: 28.000 MW over 3% 2011-2015 demand demand 2% • Reserve margin very sensitive to hydro 2010 2015 conditions • Significant organi
Slide 87: Portfolio projects situation in Brazil
latin america: analysis by country Portfolio projects situation in Brazil Environmental 2,803 MW permits approved Eólicos 2 Eólicos 1 200 MW 100 MW 300 MW Environmental permits processing Paraíba do Sul 182 MW 2,503 MW UTE Noreste Pre submitting 350 MW Jamanxim Environmental 881 MW permits Carreiro
Slide 88: Colombia
latin america: analysis by country Colombia Country demand (TWh) Dry reserve margin 69 • Demand: 3.9% CAGR over 2010-2015 57 13% • Expected addition of 3,450 MW over 2011-2015 Electricity Electricity 7% (Mainly Hydro) demand demand) ) • Strong dependence of hydro conditions 2010 2015 • Porce IV 400
Slide 89: Portfolio projects situation in Colombia
latin america: analysis by country Portfolio projects situation in Colombia Environmental 1,457 MW permits approved Environmental permits processing Guaicaramo 467 MW 1,457 MW Sumapaz 156 MW Pre submitting Environmental Oporapas Campohermoso permits 271 MW 178 MW Chapasía 385 MW Hydro Promotion Conc
Slide 90: Peru
latin america: analysis by country Peru Country demand (TWh) Dry reserve margin 41 29 • Demand: 7.1% CAGR over 2010-2015. Electricity Electricity 37% 41% • Expected addition of 3,250 MW over 2011-2015 demand demand 2010 2015 • Current regulation on price settlement will be kept until 2013 once the p
Slide 91: Portfolio projects situation in Peru
latin america: analysis by country Portfolio projects situation in Peru Environmental 1,633 MW permits approved Curibamba 188 MW 188 MW Environmental permits processing Yacila 48 MW 1,445 MW CC-GT Moyopampa Chimbote 40 MW Pre submitting Río Marañón 300 MW Environmental 900 MW permits Río Santa Yanac
Slide 92: Argentina
latin america: analysis by country Argentina Country demand (TWh) Dry reserve margin 137 • Demand: 3.5% CAGR over 2010-2015. 35% • Expected addition of 5,000 MW over 2011-2015 Electricity Electricity (Mainly State promoted) 115 demand demand 17% • Energy imports from Brazil to face seasonal energy p
Slide 93: Final remarks
17 | 05 | 2011 final remarks Mr. Andrea Brentan
Slide 94: Index
endesa 1Q results & analyst day Index Page 1. 1Q 2011 Results 3 2. Strategic Plan 2011-2015 2.1. Spain&Portugal&Others strategic plan 2011-15 19 Market context Regulation Operating excellence and synergy programs Strategic priorities 2.2. Business in Spain 38 Liberalized business Regulat
Slide 95: Overall targets: Capex programme
final remarks Overall targets Capex programme (€ bn) ~10.3 62% 38% 64% 47% Maintenance Growth 53% 36% 66% 34% Maintenance Latam Growth Spain&Portugal&Others Conservative and flexible investment profile adaptable to market conditions 95
Slide 96: Overall targets: Diversification of cash flow sources
final remarks Overall targets EBITDA by geography (€bn) EBITDA by business profile (%) 7,7 7,8 100% 100% 41% 40% 4,0 4,1 59% 60% 3,7 3,7 2013 2015 2013 2015 Latam Liberalized Spain&Portugal&Others Regulated Diversification of cash flow sources 96
Slide 97: Appendices
appendices
Slide 98: Installed capacity and output
appendices 1Q 2011 Installed capacity and output(1) Spain& Endesa Latin MW at 31/03/11 Portugal&Others America Total Total 24,773 15,835 40,608 Hydro 4,716 8,666 13,382 Nuclear 3,682 - 3,682 Installed 5,804 522 6,326 capacity Coal Natural gas 4,851 3,966 8,817 Oil-gas 5,720 2,594 8,315 CHP/Renewable
Slide 99: Endesa (excl. Enersis): financial debt maturity calendar
appendices 1Q 2011 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 31 March 2011: €10,042 M(1) Bonds (2) Bank debt and others ECPs and domestic commercial paper (3) 3,093 2,629 Endesa's Endesa's 2,082 415 liquidity liquidityexcl. excl. 1,818 1,885
Slide 100: Enersis: financial debt maturity calendar
appendices 1Q 2011 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 31 March 2011: €5,503 M(1) Bonds Bank debt and others 2,460 200 Enersis Enersishas has sufficient sufficient liquidity liquidityto to cover cover 920 2,260 28 months 661 760 702 28 months 251 of o
Slide 101: Financial policy and debt structure
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