Slide 1: Endesa FY 2019 Consolidated Results
Endesa FY 2019 Consolidated Results February 25, 2020
Slide 2: Key highlights
Key highlights 2019 results exceeding guidance Sound performance of liberalized and steady evolution of regulated businesses Flat adjusted fixed costs despite an outstanding investment effort Net Ordinary Income(1) increases by +3% Accelerating the Energy Transition (1) Reported Net Income – Net Res
Slide 3: FY 2019 consolidated results: Delivery on the strategy
FY 2019 consolidated results Delivery on the strategy
Slide 4: Financial targets delivery
Financial targets delivery 2019 2019 target (1) 2018 Δ YoY EBITDA (€bn) 3.8 ✔ 3.7 3.6 +6% ✔ Net Ordinary Income (€bn) (2) (3) 1.6 1.5 1.5 +3% 1.475 ✔ (4) Gross DPS (€/sh.) ~1.4 1.427 +3% Net Capex (€bn) (5) 1.9 ✔ 1.8 1.3 +48% ✔ Exceeding guidance (1) Strategic Plan 2019-2021. (2) 2019: Reported Net
Slide 5: Shareholder remuneration
Shareholder remuneration Gross DPS evolution (€/share) +3% +3% 1.427 1.475 2019 Total shareholder return: 25.3%(2) 1.382 0.775 (1) 2019 proposal: 100% pay-out of Net Ordinary Income Final dividend 0.70 Interim dividend 2017 2018 2019 +3% ahead of 2018 DPS Minimum DPS 1.32 1.33 - DPS 5% above guidanc
Slide 6: Capex
Capex Accelerating renewable development Net capex(1), €bn Net capex by SDGs(3), €bn By type By business 11% 10% Decarbonisation 0.9 28% Electrification 0.1 1.9 53% 1.9 36% 40% 0.6 Enabling Infrastructure 17% 5% Ecosystems & Platforms 0.1 Asset Management Mainland Gx + Dx others Customers Non Mainla
Slide 7: Decarbonisation: Coal phase out by 2030
Decarbonisation Coal phase out by 2030 Coal capacity evolution, MW(1) Highlights Closure request of domestic coal plants (Compostilla and Teruel) in December 2018 and imported coal 5,052 4,825 plants (Litoral and As Pontes) in December 2019 Alcudia 468 241 Domestic coal 2,061 2,061 Total mainland co
Slide 8: Decarbonisation: Growth in renewable generation
Decarbonisation Growth in renewable generation Renewable net installed capacity(1), MW Gross pipeline of renewable projects, GW +13% • 76% Solar • 24% Wind 0.9 7.4 6.5 0.3 0.4 0.6 Solar 1.7 2.3 19.1 Wind 4.8 Total 5.4 GW Hydro 4.7 13.7 3.7 1.7 2018 Net additions(2) 2019 Gross pipeline Early stage(3)
Slide 9: Decarbonisation: Reshape of our generation mix
Decarbonisation Reshape of our generation mix Total mainland capacity(1), GW Total mainland output(2,3), TWh +5% -19% 61.3 18.1 19.0 12.1 49.5 7.4 +13% Renewable(4) 6.5 10.0 -17% 24.1 Nuclear 3.3 3.3 26.3 +9% Thermal 8.3 8.3 (mainland) 25.2 13.2 -48% 2018 2019 2018 2019 Target 2022 Target 2022 CO2 R
Slide 10: Electrification: Maintaining leadership in the power business
Electrification Maintaining leadership in the power business Total energy sold, TWh KPIs Power integrated margin(1), €/MWh 0% 2018 2019 Var. 2018-19 Unitary 98.7 98.5(2) revenue 67.1 67.8 14.4 13.3 Free customers 5.7 5.8 +2% 19.5 19.4 mn 41.4 40.2 Regulated customers +7% 5.0 4.8 -4% mn 64.8 65.7 Uni
Slide 11: Electrification: Gas business performance
Electrification Gas business performance Volumes sold(1), TWh Key figures -3% 2018 2019 Var. 2018-19 Free customers 102.6 99.8 1.37 1.42 +4% mn Wholesale business 12.2 12.9 CCGT sales 15.8 Regulated customers 20.0 0.23 0.23 +0% mn Retail 74.5 Total customers(1) 66.8 1.60 1.65 +3% mn 2018 2019 Churn
Slide 12: Enablers and ecosystems
Enablers and ecosystems Distributed energy(1), TWh Electric mobility Charging points(2), k# -0.4% +67% 117.0 116.6 5.0 3.0 2018 2019 2018 2019 Losses(3) (%) 10.7 10.7 Minutes of 65 61 interruption(4) RAB (€bn) 11.8 11.7 Infrastructures enabling new renewables and electric vehicle integration (1) Ene
Slide 13: Financial results
FY 2019 consolidated results Financial results
Slide 14: Market context in FY 2019
Market context in FY 2019 Demand(1) Electricity wholesale prices Commodities spot prices Endesa distribution area(2) (Not adjusted) Average pool prices Spain (€/MWh) -17% -0.6% Industry -0.5% Services +1.6% 0.1% Residential -2.8% Spain(3) 57.3 -1.7% 47.7 -2.7% 2018 2019 Adjusted for weather and Not
Slide 15: Regulatory context
Regulatory context Update EU Fair Transition EU Green Deal mechanism Europe Climate Change Climate PNIEC and Energy Emergency new Draft Transition Law Approved Declaration Draft Partially approved Non mainland RDL 17/2019 Renewables CNMC remuneration Promotion of Fair remuneration “Circulares” M.O.(
Slide 16: 2019 consolidated results: Financial highlights
2019 consolidated results Financial highlights (€mn) 2019 2018 Δyoy (1) EBITDA 3,841 3,627 +6% Net ordinary income 1,562 (2) 1,511 +3% FCF 1,267 909 +39% (3) Net debt 6,377 5,770 +11% Net capex(4) 1,887 1,274 +48% Reported net income 171 1,417 -88% (1) EBITDA includes +27 €mn of the Catalan Nuclear
Slide 17: Impairments
Impairments €bn Coal fleet and non mainland assets impairments(1) Rationale 1.9 0.1 0.4 Coal fleet: 1.5 0.5 0.1 • Adverse market conditions Dismantling provisions 0.5 • Acceleration of the decarbonisation process 1.3 Non mainland assets: 0.9 • Review of technical and economic parameters in Order TEC
Slide 18: EBITDA evolution
EBITDA evolution €mn +6% DYoY (1) 3,841 3,627 40 263 - 89 1,212 1,475 +22% 356 267 -25% 2,059 2,099 +2% (2) 2018 Dx Non mainland Gx Gx + Sx 2019 Distribution Non mainland Gx Generation & Supply EBITDA improvement mainly supported by liberalized business performance (1) EBITDA includes +27 €mn of the
Slide 19: Regulated business
Regulated business €mn Gross margin EBITDA Regulated margin: 3,184 €mn (-10 €mn) ~0% -2% • Dx margin : +63 €mn 3,194 3,184 • +57 €mn regulated distribution income 2,415 2,366 • +7 €mn Eléctrica Ceuta 611 538 356 267 • Non mainland margin: -73 €mn • -52 €mn mainly due to lower fuel compensations 2,58
Slide 20: Liberalized business
Liberalized business(1) €mn Gross margin EBITDA Liberalized margin: 2,722 €mn (+288 €mn) +12% +22% • Electricity&Others margin: 2,335 €mn 1,475 2,722 (+157 €mn) 2,434 292 1,212 223 287 • Gas margin: 269 €mn (+131 €mn) 212 • Endesa X margin: 118 €mn (+1 €mn) 2,430 1,252 2,147 1,000 Fixed costs: 1,247
Slide 21: Efficiency through digitalisation
Efficiency through digitalisation Opex(1) evolution, €bn -0.5% 2018 2019 Target 2022 Var. 2018-19 Unitary cost (2) 46 44 45 -4% k€/MW 16 40 -65 Unitary cost 43 43 39 - €/end user Cost to Serve 11.3 10.6 9.1 -6% 1,991 (3) 1,982 (4) €/customer e-billing 2.8 3.8 4.5 36% mn Digital Sales 5.7% 10.0% 14%
Slide 22: From EBITDA to Net Ordinary Income
From EBITDA to Net Ordinary Income €mn 2019 2018 Δyoy EBITDA (1) 3,841 3,627 +6% EBITDA increase +6% D&A (2) (3,453) (1,708) +102% EBIT 388 1,919 -80% Higher D&A affected by impairments, IFRS16 impact and Financial expenses (184) (139) +32% digitalization capex Results from equity investments & Othe
Slide 23: Cash Flow
Cash Flow €mn -277 +166 -440 -109 (1) -1,914 3,841 3,181 1,267 (2) (3) (4) EBITDA Provisions paid Working capital Income Taxes Financial FFO Capex FCF (5) & Other Expenses 11% Previous year 3,627 -246 -522 -326 -113 2,420 -1,511 909 Delta YoY +6% +13% n.a. +35% -4% +31% +27% +39% Historical record c
Slide 24: Net financial debt analysis
Net financial debt analysis €mn Gross debt Net debt evolution 80 6,377 6,607 5,770 274 6,021 894 230 - 1,267 1,520 Cash & Derivatives 251 810 recognized as financial assets 5,770 6,377 5,483 Net debt 4,960 4,777 2018 2019 2018 IFRS 16 FCF Dividends Others 2019 Regulatory working capital(1) ▪ Cost of
Slide 25: Delivering and exceeding 2019 targets
Delivering and exceeding 2019 targets CAGR 2019 2020 2021 2022 2019-2022 EBITDA (€bn) 3.8 3.9 4.1 4.3 +4% Net ordinary income (€bn) 1.6 1.7 1.8 1.9 +7% (1) Implicit Gross DPS (€/sh.) 1.475 ~1.6 ~1.4 ~1.3 Net Capex (€bn) 1.9 1.6 2.0 2.2 Pay out (%) 100% 80% 70% Exceeding guidance 2019 good ground for
Slide 26: Final Remarks
Final Remarks Delivery on financial targets above guidance Progressing on renewables deployment and decarbonization process Outstanding TSR (1) of 25.3% in 2019 2020 financial targets reiterated FY 2019 Results- Madrid, 25 February 2020 (1) (Share price end of period – share price beginning of perio
Slide 27: Annexes
FY 2019 consolidated results Annexes
Slide 28: Installed capacity and output
Installed capacity and output Total output(1), GWh Total output, GWh -17% GWh 2019 74,193 (and chg. vs. 2018) Total Output (1) Total 61,402 -17% 12,737 61,402 Hydro 5,861 -30% 5,293 Nuclear 26,279 9% 11,820 Coal 7,643 -66% 14,951 7,566 CCGT 11,687 30% 4,973 4,115 Oil-gas 5,703 -15% 1,532 3,833 4,229
Slide 29: Profitability and credit metrics
Profitability and credit metrics Profitability(1) Return on invested capital Credit metrics +40 bps +800 bps -100 bps ,500 0 60% 14% ,450 00 50% ,400 0 12% 42% 41% 50% ,350 00 10% 11.3% 11.7% 40% ,300 0 08% 42% ,250 00 30% ,200 0 06% ,150 00 20% 1.6x 1.7x 04% ,100 0 10% 02% ,050 00 - 00% 00% 2018 20
Slide 30: Financial debt maturity calendar
Financial debt maturity calendar €mn Gross balance of maturities outstanding at 31 December 2019: 6,580 €mn(1) ECP’s and other marketable securities (2) Bank Debt Other debts 4,887 3,465 Endesa's liquidity covers 26 months of debt maturities 93 954 78 65 328 242 1,410 796 91 169 74 52 0 254 190 12 2
Slide 31: Fixed costs evolution
Fixed costs evolution €mn + 64 €mn +3% -9 €mn -0.5%(1)(2) 83 (2) 2,065 2,001 10(1) 1,991 1,982 947 943 979 1,022 Personnel +4% costs O&M costs 1,324 1,318 1,298 1,338 -2% Capitalized costs -270 -270 -295 -295 2018 2018 2019 2019 Reported Adjusted Adjusted Reported (1) FY 2018 Fixed costs adjusted by
Slide 32: Headcount
Headcount Year end employees 2018 2019 9,763 9,952 1,630 1,687 7,484 7,573 867 893 2,969 2,978 2,535 2,527 2,279 2,379 5,296 5,155 4,082 763 4,153 794 443 442 1,073 1,143 Male Female Total Male Female Total Generation & Supply Distribution Structure & others FY 2019 Results- Madrid, 25 February 2020
Slide 33: Spanish power market
Spanish power market FY 2019 Customers(1), mn Energy sold(2), TWh 18.3 29.4 226.6 253.9 55.3 30% 32% 81.2 17.4 28.5 11.2 171.4 0.9 33% 172.7 31% 11.2 27.3 26.0 0.0 0.9 1.3 43% 30% Regulated 48% Free 34% Total Regulated Free Total Residential Business XX% Endesa market share 33 (1) Customers: CNMC “I
Slide 34: Engaging people we work with
Engaging people we work with Plan actions 2019 2020-22 targets • 8,443 people involved Open Feedback Evaluation 100% of people involved • 84% of eligible people • 100% of people involved • 100% of people involved Climate survey(1) • 83% of people participating • 87% of people participating(2) Gender
Slide 35: Engaging local communities
Engaging local communities Plan actions 2019(1) 2015-2030 targets(1) High-quality, inclusive and fair education 0.19 mn beneficiaries 0.7 mn beneficiaries in 2030 Access to affordable and clean energy 1.6 mn beneficiaries 4.8 mn beneficiaries in 2030 Employment and sustainable 1.7 mn beneficiaries i
Slide 36: Focus on Innovation & Cybersecurity
Focus on Innovation & Cybersecurity Innovation Cybersecurity 2020-22 2020-22 2019 2019 Targets Targets Coverage of web applications People involved in promotional 399 1,000 exposed to internet with advanced innovation actions (workshops, trainings, 100% 100% cyber security application solutions intr
Slide 37: Endesa: FY 2019 P&L
Endesa: FY 2019 P&L €mn Gx+Sx Dx Structure Adjustments TOTAL Income 17,537 2,828 638 -845 20,158 Procurements and services -14,204 -182 -44 178 -14,252 Gross margin 3,333 2,646 594 (667) 5,906 Self-constructed assets 96 175 24 0 295 Personel expenses -542 -280 -215 15 -1,022 Other fixed operating ex
Slide 38: Endesa: FY 2018 P&L
Endesa: FY 2018 P&L €mn Gx+Sx Dx Structure Adjustments TOTAL Income 17,621 2,784 614 -824 20,195 Procurements and services -14,464 -201 -81 179 -14,567 Gross margin 3,157 2,583 533 (645) 5,628 Self-constructed assets 83 167 20 0 270 Personel expenses -520 -263 -180 16 -947 Other fixed operating expe
Slide 39: 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: (135 €mn) / 7,448 €mn = 1.8% 4.1 (Principal x number of days of term) / (Principal in force at the end of the period x
Slide 40: Glossary of terms (II/II)
Glossary of terms (II/II) Reference note (#) of Consolidated Item Calculation Management Report Gross tangible (1,925 €mn) and intangible (234 €mn) Capex - assets from clients’ contributions and Net Capex (€mn) 4.5 subsidies (133 €mn) - first-time right-of-use recognition (138 €mn) = 1,887 €mn Long
Slide 41: 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 42: 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 42