Slide 1: Endesa 1Q 2013 results
07 | 05 | 2013 endesa 1Q 2013 results
Slide 2: Business context in 1Q 2013
consolidated results 1Q 2013 Business context in 1Q 2013 Demand Spain(1) Endesa distribution area(2) +1.3%(3,4) Latin Spain: America: demand +0.5%(3) Industry -6.6% better 5.5% +5.7% decrease in all performance of categories of Services -4.8% 2.2% Endesa clients, 1.8% 1.7% 1.4% distribution Resident
Slide 3: Operating results negatively affected by regulation in Spain & weather conditions in LatAm
consolidated results 1Q 2013 Operating results negatively affected by regulation in Spain & weather conditions in LatAm 1Q 2013 1Q 2012 Change €M Revenues 8,166 8,647 -6% Gross margin 2,552 2,708 -6% EBITDA 1,682 1,827 -8% Spain&Portugal 971 1,040 -7% Latin America 711 787 -10% EBIT(1) 1,034 1,256 -
Slide 4: Spain: regulation update
consolidated results 1Q 2013 Spain: regulation update Access tariffs frozen 2Q 2013 access tariff Last Resort Tariff: -6.6% after Cesur auction on 20th March 2013 2013 national No pass-through of additional costs arising from Law 15/2012 coal resolution A. Higher decision powers of the Central
Slide 5: Update on tariff deficit securitization process
consolidated results 1Q 2013 Update on tariff deficit securitization process Overall Endesa Tranche Covering Status amount (€ bn) amount (€ bn, %) Mainland deficit 2006 Mainland deficit 2008 1st Ex-ante mainland deficit 2009 13.1 6.8 (52%) Fully securitized Ex-ante mainland deficit 2010 Non mainland
Slide 6: Latam: regulation update
consolidated results 1Q 2013 Latam: regulation update New regulatory remuneration in Gx based on a Cost Plus scheme (26th March 2013): -Remuneration of (i) fixed costs according to availability; (ii) variable cost payments Argentina depending on size and technologies and (iii) additional remunerat
Slide 7: Successful closing of Enersis Capital Increase
consolidated results 1Q 2013 Successful closing of Enersis Capital Increase 100% subscription (1) Capital • Total capital increase: ~US$ 6,022 M (€4,562 M). increase • Asset contribution: ~US$ 3.646 (€2,766 M) results • Cash contribution: ~US$ 2.376 (€1,796 M) • Leading private electric utility in
Slide 8: Sound financial position
consolidated results 1Q 2013 Sound financial position Net debt evolution in 1Q 2013 (€M) 8,778 603 543 679 1,198(2) 112 102 191 6,864 1.0x Enersis 4,144 Tariff Def(1): -€588 M Pending Mainland securitization: €1,267 M 3,220 1.0x 3,627 regulatory assets Spain& Debt net of Portugal 4,634 3,644 1.0x 3,
Slide 9: Spain & Portugal 1Q 2013
spain&portugal 1Q 2013
Slide 10: Highlights in 1Q 2013
spain&portugal 1Q 2013 Highlights in 1Q 2013 Regulated business margin negatively affected by regulatory measures (RDL 13/2012, RDL 20/2012, Law 15/2012 and RDL 2/2013) Output generation (-24%)(1): strong demand decline jointly with lower thermal gap. 71% of total output from nuclear & hydro (vs 47%
Slide 11: 1Q 2013 extraordinary market conditions in Spain: lower demand and exceptional hydro
spain&portugal 1Q 2013 1Q 2013 extraordinary market conditions in Spain: lower demand and exceptional hydro Monthly demand evolution Exceptional hydro and wind contribution Demand adjusted for weather and working days (Mainland). Source: REE Mainland. Source: REE Wind Hydro TWh 6.1 Jan-13 Feb-13 Mar
Slide 12: Results affected by regulatory measures
spain&portugal 1Q 2013 Results affected by regulatory measures €M 1Q 2013 1Q 2012 Change Revenues 5,758 6,031 -5% Gross margin 1,476 1,584 -7% EBITDA 971 1,040 -7% EBIT(1) 505 658 -23% Net finance expenses 48 61 -21% Net attributable income 338 475 -29% Impact of Law 15/2012 partially mitigated by e
Slide 13: Regulatory measures impacting both liberalized and regulated business margins
spain&portugal 1Q 2013 Regulatory measures impacting both liberalized and regulated business margins €M 1,584 1,476 -10% -5% -7% 1Q 2012 Liberalized business Regulated business 1Q 2013 Generation mix (production/energy purchases) Lower energy sales Law 15/2012 and RDL 20/2012 in non-mainland generat
Slide 14: Mainland output and energy management optimization
spain&portugal 1Q 2013 Mainland output and energy management optimization Decrease in mainland output(1) 1Q 2013 energy management Gross electricity Gross electricity sources sales GWh 17,600 27 TWh 27 TWh 1,635 LRT Auctions(2) 7 7 LRT(2) 13,407 4,248 -24% 449 CCGT Energy purchases 1 Pool sales 2,91
Slide 15: Latin America 1Q 2013
latin america 1Q 2013
Slide 16: Highlights in 1Q 2013
latin america 1Q 2013 Highlights in 1Q 2013 Slowdown in LatAm demand in Dx (1.3%)1: Brazil overperforming; negative performance in Argentina and Colombia 24% drop in Brazilian EBITDA: temporary effect in Dx due to more expensive energy purchases Argentina: despite regulatory improvements negative EB
Slide 17: EBITDA affected by lower demand in the region and distribution in Brazil and Argentina
latin america 1Q 2013 EBITDA affected by lower demand in the region and distribution business in Brazil and Argentina €M 1Q 2013 1Q 2012 Change Revenues 2,408 2,616 -8% Gross margin 1,076 1,124 -4% EBITDA 711 787 -10% EBIT 529 598 -12% Net finance expenses 97 126 -23% Net income 299 328 -9% Net attr
Slide 18: Chile: better results due to new installed capacity
latin america 1Q 2013 Chile: better results due to new installed capacity Generation output Distribution sales(1) Chile GWh GWh +0% Worse hydro conditions offset by thermal (Bocamina II) +2% Stable demand supported by 4,875 4,895 residential & commercial 3,108 3,160 customers 1Q 2012 11Q 2013 1Q
Slide 19: Brazil: EBITDA impacted by temporary effects
latin america 1Q 2013 Brazil: EBITDA impacted by temporary effects Generation output Distribution sales(1) Brazil GWh GWh +6% Output increase supported by thermal dispatch, offsetting lower hydro generation due to drought 4,517 4,774 Higher Dx volumes due to weather +28% conditions 976 1,246 1Q
Slide 20: Colombia: well-balanced asset portfolio
latin america 1Q 2013 Colombia: well-balanced asset portfolio Generation output Distribution (1) Colombia GWh sales Output in line with 1Q 2012. -2% Decrease in hydro generation GWh partially offset by thermal -1% dispatch 3,073 3,018 2,014 1,996 Lower demand due to slowdown in construction acti
Slide 21: Peru: stable results
latin america 1Q 2013 Peru: stable results Generation output Distribution sales(1) Peru GWh -7% GWh Lower thermal and hydro +2% dispatch 2,378 2,220 Performance due to lower 1,596 1,625 consumption of deregulated customers 1Q 2012 11Q 2013 1Q 2012 21Q 2013 Peru EBITDA Gx EBITDA Dx EBITDA €M -5%
Slide 22: Argentina: slowdown in market dynamics
latin america 1Q 2013 Argentina: slowdown in market dynamics Generation output Distribution (1) Argentina GWh sales -9% GWh -3% Generation decrease due to outages in thermal plants and lower hydro dispatch due to poor 4,333 3,949 3,728 3,603 hydrology Lower demand in distribution 1Q 2012 11Q 201
Slide 23: Final remarks 1Q 2013
final remarks 1Q 2013
Slide 24: Final remarks
final remarks 1Q 2013 Final remarks Complex operational and regulatory context Negative impact from regulation Spain Exceptional market context in 1Q, cannot be extrapolated for FY2013 Challenging hydro conditions Latin America Successful closing of Enersis capital increase 24
Slide 25: Appendices 1Q 2013
appendices 1Q 2013
Slide 26: Installed capacity and output
appendices 1Q 2013 Installed capacity and output(1) Latin MW at 31/03/13 Spain& Portugal America Total Total 23,252 16,157 39,409 Hydro 4,755 8,666 13,421 Nuclear 3,686 - 3,686 Installed Coal 5,804 872 6,676 capacity Natural gas 4,878 3,958 8,836 Oil-gas 4,129 2,574 6,702 CHP/Renewables na 87 87 Lat
Slide 27: Latin America: generation and distribution figures
appendices 1Q 2013 Latin America: generation and distribution figures Generation Output Distribution Sales(1) GWh GWh -2.0% +1.3% 15,635 15,328 14,963 15,158 4,333 -9% 3,949 3,728 3,603 -3% Argentina 976 1,246 +28% Brazil 4,517 4,774 +6% 4,875 4,895 +0% Chile 3,108 3,160 +2% 3,073 -2% Colombia 3,018
Slide 28: Latin America: EBITDA break down by country and business nature
appendices 1Q 2013 Latin America: Ebitda break down by country and business nature Ebitda Generation(1) Ebitda Distribution €M €M 419 Argentina +4% 371 356 -19% 329 13 16 -21% 50 -7% Brazil 203 54 142 -30% 95 +13% 84 Chile 67 67 +0% 136 150 +10% Colombia 122 114 -7% 66 63 -5% 35 36 +3% Peru -8 -30 1
Slide 29: Endesa (excl. Enersis): financial debt maturity calendar
appendices 1Q 2013 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 31 March 2013: €3,840 M(1) Bonds Bank debt and others ECPs and domestic commercial paper (2) Endesa's 1,561 liquidity excl. Enersis 1,014 covers 43 741 1,196 months of 700 debt 289
Slide 30: Enersis: financial debt maturity calendar
appendices 1Q 2013 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 31 March 2013: €5,424 M(1) Bonds Bank debt and others 2,542 343 Enersis has sufficient liquidity to 876 976 2,199 cover 401 490 540 38 months 397 105 99 of debt 479 575 441 maturities 385 Apr-Dec
Slide 31: Financial policy and net debt structure
appendices 1Q 2013 Financial policy and net debt structure Structure of Endesa's net debt ex-Enersis Enersis net debt structure €M €M 3,644 3,644 3,220 3,220 Floating 23% Other 43% Floating 77% Euro 100% Fixed 77% US$ 57% Fixed 23% By interest rate By currency By interest rate By currency Average co
Slide 32: Well on track on forward sales strategy
appendices 1Q 2013 Well on track on forward sales strategy Spain & Portugal Latin America (% estimated mainland output hedged) (% estimated output hedged) 100% Contracting level in Latin America that 70-75% optimizes margin 65-70% and risk exposure 15% 2013 2014 2013 2014 35% of the generation sold
Slide 33: Disclaimer
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
Slide 34: Consolidated results 1Q 2013
consolidated results 1Q 2013 34