Enel SpA · MIL:ENEL
Enel SpA — H1 2010 Earnings Presentation
51 slides from Enel SpA's earnings presentation, Jul 29, 2010
Slide 1: 2010 Interim Results
Enel SpA Investor Relations 2010 Interim Results July 29, 2010
Slide 2: Agenda
Enel SpA Investor Relations Agenda • 2010 Interim Results • Annexes 1
Slide 3: Actual electricity demand vs. plan assumptions
Enel SpA 1H2010 results Investor Relations Actual electricity demand vs. plan assumptions Electricity Electricitydemand demand1H2010 Electricity 1H2010 Electricitydemand demand2009-2014 2009-2014CAGR CAGR Italy 1.9% Italy 1.8% Spain1 4.2% Spain1 1.9% (3) (3) +3.7% +2.4% Russia 5.0% Russia 1.7% Slova
Slide 4: Update on disposals: impact on Group net debt
Enel SpA 1H2010 results Investor Relations Update on disposals: impact on Group net debt 0.2 10.0 1.5 0.4 0.5 1.2 3.3 1.2 HV Grid Gas dis. Upstream Portfolio Already HV grid Other non EGP Gas Maritza Other non Total Italy Italy gas Russia optimization delivered Spain strategic minority network East
Slide 5: Net debt evolution (€mn)
Enel SpA 1H2010 results Investor Relations Net debt evolution (€mn) -624 (1) December 31, Cash-flow Capex Net Taxes3 Dividends4 Extra- Net debt as of Forex June 30, 2009 from financial ordinary June 30, 2010 effect 5 2010 operations charges2 activities excl. forex effect -50,870 -51,494 -53,894 -2,6
Slide 6: Financial highlights: consolidated
Enel SpA 1H2010 results Investor Relations Financial highlights: consolidated1 €mn 1H09 1H10 % Revenues 28,457 34,802 22.3 EBITDA 7,939 8,878 11.8 EBIT 5,579 6,083 9.0 Group net income 3,524 2,425 -31.2 Group net ordinary income 2,189 2,425 10.8 (2),(3) (3) Net debt 50,870 53,894 5.9 (3) - Net debt
Slide 7: From EBIT to Net Income
Enel SpA 1H2010 results Investor Relations From EBIT to Net Income €mn 1H09 1H10 % EBIT 5,579 6,083 9.0 Net financial charges 209 1,766 n.m. 1,168 1,398 +19.7 Interest charges Fair value of Acciona’s put option (970) - n.m. Other 11 368 n.m. Net income from equity investments (21) 1 n.m. using equit
Slide 8: Focus on net financial charges (€mn)
Enel SpA 1H2010 results Investor Relations Focus on net financial charges (€mn) 1,766 56 105 368 196 230 1,179 11 1,398 1,168 Net financial Endesa’s Tariff deficit Post- Other 1H10 Net financial charges 1H09(1) perimeter effect regularization employment charges 1H10 and other and other effects 1H10
Slide 9: Focus on forward electricity sales
Enel SpA 1H2010 results Investor Relations Focus on forward electricity sales Level of total production hedged (%) Italy Spain 100 100 100 100 ~45 ~ 40 - 45 ~55 ~ 55 - 60 2010 2011 2010 2011 Latam Slovakia 100 100 100 100 ~10 ~ 25 - 30 ~ 25 - 30 ~ 70 - 75 ~ 70 - 75 ~90 2010 2011 2010 2011 Unhedged H
Slide 10: Endesa's synergy programme and targets
Enel SpA 1H2010 results Investor Relations Endesa’s synergy programme and targets >1,000 717 >700 500 +13% 613 494 +69% 310 436 313 194 266 >300 157 225 217 181 116 41 2008 2008 2009 2009 2010 1H 2010 (1) 2011 2012 target achieved target achieved target achieved target target EBITDA CAPEX 51% of 201
Slide 11: Cash flow optimization (excluding Endesa): Zenith
Enel SpA 1H2010 results Investor Relations Cash flow optimization (excluding Endesa): Zenith Total pre-tax cash flow optimisation (vs. 2008) U Working capital optimisation 2009-2011 ~2,700 International best practice sharing Working 19% 27% Credit management capital / capex ~1,300 optimisation 12% I
Slide 12: Group EBITDA evolution (€mn)
Enel SpA 1H2010 results Investor Relations Group EBITDA evolution (€mn) +11.8% +1,631 +31 -80 8,878 72 651 7,939 -648 152 +33 -171 +143 620 4,047 2,416 698 S&H1 EGP Iberia & Latam 841 2,016 International I&N Market 1,845 160 G&EM 193 1,877 1,229 1 1H09 G&EM Market I&N Inter- Iberia & EGP S&H 1H10 It
Slide 13: EBITDA evolution – G&EM Italy (€mn)
Enel SpA 1H2010 results Investor Relations EBITDA evolution – G&EM Italy (€mn) -34.6% 1,877 -33 -268 -8 -339 1,229 1H09 Generation Trading Ancillary Other 1H10 margin margin services 12
Slide 14: G&EM Italy: fuel cost evolution
Enel SpA 1H2010 results Investor Relations G&EM Italy: fuel cost evolution -6% 55.5 51.9 Average fuel cost (€/MWh) 1H09 1H10 +6% -5% -6% 357.5 34.0 92.0 86.7 338.2 32.3 1H09 1H10 1H09 1H10 1H09 1H10 Oil (€/ton) Gas (c€/mc) Coal (€/ton) 13
Slide 15: EBITDA evolution – Market Italy (€mn)
Enel SpA 1H2010 results Investor Relations EBITDA evolution – Market Italy (€mn) +20.6% +43 -10 193 160 1H09 Free Regulated 1H10 market market 14
Slide 16: EBITDA evolution: Infrastructure & Networks Italy (€mn)
Enel SpA 1H2010 results Investor Relations EBITDA evolution: Infrastructure & Networks Italy (€mn) -8.5% 2,016 +107 +13 -291 1,845 1H09 Energy Connection Other 1H10 margin fees 15
Slide 17: EBITDA evolution: International (€mn)
Enel SpA 1H2010 results Investor Relations EBITDA evolution: International (€mn) +20.5% +84 841 +56 -14 698 +17 167 83 30 44 171 115 Russia France & Belgium SEE 456 Centrel 473 1H09 Centrel SEE France Russia 1H10 & Belgium 16
Slide 18: Focus on Russia
Enel SpA 1H2010 results Investor Relations Focus on Russia1 Unitary price2 (€/MWh) Capacity payment (€/MW per month) 19.0 15.3 2,857 2,807 1H09 1H10 1H09 1H10 Dark spread (€/MWh) Spark spread (€/MWh) 7.2 3.1 1.2 0.5 1H09 1H10 1H09 1H10 1. Average exchange rate: 39.9 Rub/Eur 17 2. Average price exclu
Slide 19: EBITDA evolution: focus on Endesa (€mn)
Enel SpA 1H2010 results Investor Relations EBITDA evolution: focus on Endesa1 (€mn) +12.3% +394 +50 4,047 3,603 1,596 1,546 Latam 2,451 2,057 Iberia 1H09 Iberia Latam 1H10 1. 1H09 EBITDA 100% Endesa and according to Enel’s GAAP 18
Slide 20: Focus on Enel Green Power: EBITDA evolution (€mn)
Enel SpA 1H2010 results Investor Relations Focus on Enel Green Power EBITDA evolution (€mn) +5.0% +32 +11 651 17 620 -19 +7 1 49 125 132 601 601 608 640 Enel.Si 488 North America 469 Iberia and Latin America Italy and Europe -10 1H09 Italy and Iberia and North Enel.Si 1H10 Europe Latin America Ameri
Slide 21: Focus on Enel Green Power: Net installed capacity evolution (MW)
Enel SpA 1H2010 results Investor Relations Focus on Enel Green Power Net installed capacity evolution (MW) Ready to build1 Under construction 955 5,761 262 4,544 1,085 525 560 1H09 2H09 1H10 1H10 Under growth growth2 execution as of today 1. On average ‘ready to build’ projects require 2-3 months to
Slide 22: Enel Group liquidity analysis (€mn)
Enel SpA 1H2010 results – Financial annexes Investor Relations Enel Group liquidity analysis (€mn)1 Amount Outstanding Available 60M credit facility for Endesa acquisition 3,417 3,417 - 2009 credit facility for Endesa acquisition (2014) 2,401 2,401 - 2009 credit facility for Endesa acquisition (2016
Slide 23: Agenda
Enel SpA Investor Relations Agenda • 2010 Interim Results • Annexes 22
Slide 24: Group EBITDA: regulated/unregulated activities
Enel SpA 1H2010 results - Annexes Investor Relations Group EBITDA: regulated/unregulated activities Production mix 1H10 EBITDA 140.9 (TWh) 8,878 €mn Stability Stabilityand andhigh high visibility 14.7% visibility 13.2% 46% 10% 24.5% 44% 14.2% 4.0% 29.4% Forward Forwardsales salesand and Unregulated
Slide 25: Production mix
Enel SpA 1H2010 results – Operational annexes Investor Relations Production mix -3.3% 42.3 (TWh) 40.9 (TWh) 4.8% 2.6% 16.6% 21.7% Group production mix 32.8% 32.2% Domestic +15.1% Domestic 6.5% 7.1% 39.3% 36.4% 122.4 (TWh) 140.9 (TWh) 15.1% 14.7% 1H09 1H10 11.3% 13.2% 27.4% 24.5% +24.8% 11.7% 14.2% 4
Slide 26: 1H2010 Group total net installed capacity: breakdown by source and location
Enel SpA 1H2010 results – Operational annexes Investor Relations 1H2010 Group total net installed capacity1: breakdown by source and location MW Hydro RES Nuclear Coal CCGT Oil & gas TOTAL - other ST/OCGT Italy 14,418 1,150 - 6,836 5,946 12,056 40,406 Iberia 4,698 1,351 3,518 5,435 2,124(2) 6,475(3)
Slide 27: 1H2010 Group total net production: breakdown by source and location
Enel SpA 1H2010 results – Operational annexes Investor Relations 1H2010 Group total net production1: breakdown by source and location GWh Hydro RES Nuclear Coal CCGT Oil & gas TOTAL - other ST/OCGT Italy 14,917 2,882 - 13,198 8,869 1,076 40,942 Iberia 5,885 1,612 12,816 5,361 2,133(2) 5,463(3) 33,27
Slide 28: 1H2010 renewables net installed capacity: breakdown by source and location
Enel SpA 1H2010 results – Operational annexes Investor Relations 1H2010 renewables net installed capacity: breakdown by source and location MW Hydro Geothermal Wind Other TOTAL Italy & Europe 1,519 695 679 4 2,897 Iberia & Latam 701 - 1,270 105 2,076 North America 314 47 406 21 788 TOTAL 2,534 742 2
Slide 29: 1H2010 renewables net production: breakdown by source and location
Enel SpA 1H2010 results – Operational annexes Investor Relations 1H2010 renewables net production: breakdown by source and location GWh Hydro Geothermal Wind Other TOTAL Italy & Europe 3,530 2,512 589 - 6,631 Iberia & Latam 1,700 - 970 142 2,812 North America 543 133 620 88 1,384 TOTAL 5,773 2,645 2
Slide 30: EBITDA evolution - Services & Holding (€mn)
Enel SpA 1H2010 results – Financial annexes Investor Relations EBITDA evolution - Services & Holding1 (€mn) -52.6% 152 -32 -48 72 1H09 Import Other 1H10 1. Including Engineering and Innovation division and intercompany adjustments 29
Slide 31: EBIT by business area (€mn)
Enel SpA 1H2010 results – Financial annexes Investor Relations EBIT by business area (€mn) +9.0% 6,083 5,579 13 -86.7% 495 -2.4% 98 507 1,462 2,578 +76.3% 392 S&H 1 581 +48.2% EGP 1,596 Iberia & Latam International 1,405 -12.0% I&N G&EM 51 - Market 1,533 960 -37.4% -9 1H09 1H10 1. Including Engineer
Slide 32: Balance sheet
Enel SpA 1H2010 results – Financial annexes Investor Relations Balance sheet €mn December 31, 2009 June 30,2010 % Net financial debt 50,870 53,894 5.9 Shareholders’ equity 45,933 49,929 8.7 Net capital employed 96,803 103,823 7.3 31
Slide 33: Debt structure
Enel SpA 1H2010 results – Financial annexes Investor Relations Debt structure1 • Average debt maturity: 6 years and 9 months • Average cost of debt2: 5.3% • (Fixed+hedged)/Total long-term debt: 90% • (Fixed+hedged)/Total net debt: 82% • Rating: S&P’s = A-/A-2 Stable outlook; Moody’s = A2/P-1 Negativ
Slide 34: Enel's group financial debt evolution
Enel SpA 1H2010 results – Financial annexes Investor Relations Enel’s group financial debt evolution1 Enel Group (excluding Endesa) Endesa Group - Total €mn 12.31.2009 06.30.2010 12.31.2009 06.30.2010 06.30.2010 Bank loans – maturities > 12m 14,227 10,926 7,405 6,728 17,654 Bonds – maturities > 12m
Slide 35: Enel's group financial debt by subsidiary
Enel SpA 1H2010 results – Financial annexes Investor Relations Enel’s group financial debt by subsidiary1 €mn Enel SpA Endesa EFI2 EIH2 Slovenské EP2 ED2 Other Total Bonds 16,291 6,838 13,546 522 194 - - 269 37,660 Bank loans 4,154 7,150 2,656 - 54 696 2,311 1,351 18,372 Preference shares - 1,469 -
Slide 36: Enel's group financial debt
Enel SpA 1H2010 results – Financial annexes Investor Relations Enel’s group financial debt Average cost of debt Average residual maturity 5.5% 5.0% 5.3% 7:7 7:7 7:1 4.7% 5.1% 6:9 4.4% 6:4 4.4% 4.3% 4.6% 5:10 5:2 4:11 4:4 (1) (1) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2003 2004 2005 2006 2
Slide 37: Enel's long-term debt maturity profile (€mn)
Enel SpA 1H2010 results – Financial annexes Investor Relations Enel’s long-term debt maturity profile (€mn)1 Endesa Enel Group excluding Endesa 32,198 3,587 11,105 28,611 6,122 5,279 5,964 2,858 1,146 1,432 3,260 1,295 4,983 4,818 1,563 1,049 2,019 383 < 12 Month II H 2011 2012 2013 2014 After 2014
Slide 38: Enel's long-term debt maturity profile
Enel SpA 1H2010 results – Financial annexes Investor Relations Enel’s long-term debt maturity profile1 Enel Group (excluding Endesa) €mn <12m 2011 2012 2013 2014 After 2014 Bank loans 296 193 3,783 359 2,737 3,854 Bonds 1,240 167 1,179 1,640 2,057 24,539 Other 27 23 21 20 24 218 Total 1,563 383 4,98
Slide 39: Enel Group liquidity analysis excluding Endesa (€mn)
Enel SpA 1H2010 results – Financial annexes Investor Relations Enel Group liquidity analysis excluding Endesa (€mn)1 Amount Outstanding Available 60M credit facility for Endesa acquisition 3,417 3,417 - 2009 credit facility for Endesa acquisition (2014) 2,401 2,401 - 2009 credit facility for Endesa
Slide 40: Endesa liquidity analysis (€mn)
Enel SpA 1H2010 results – Financial annexes Investor Relations Endesa liquidity analysis (€mn) Amount Outstanding Available Total committed credit lines 9,061 3,567 5,494 Other short-term bank debt – uncommitted lines 1,742 454 1,288 Total credit lines 10,803 4,021 6,782 Commercial paper issued by t
Slide 41: Generation & Energy Management - Italy
Enel SpA 1H2010 results – Financial annexes Investor Relations Generation & Energy Management - Italy €mn 1H09 1H10 % Revenues 9,294 8,236 -11.4 EBITDA 1,877 1,229 -34.5 EBIT 1,533 960 -37.4 Capex 376 293 -22.1 (1) Headcount 6,703 6,637 -1.0 1. As of December 31, 2009 40
Slide 42: Market - Italy
Enel SpA 1H2010 results – Financial annexes Investor Relations Market - Italy €mn 1H09 1H10 % Revenues 10,613 9,148 -13.8 EBITDA 160 193 +20.6 EBIT -9 51 - Capex 26 16 -38.5 (1) Headcount 3,962 3,943 -0.5 1. As of December 31, 2009 41
Slide 43: Infrastructure & Network - Italy
Enel SpA 1H2010 results – Financial annexes Investor Relations Infrastructure & Network - Italy €mn 1H09 1H10 % Revenues 3,471 3,414 -1.6 EBITDA 2,016 1,845 -8.5 EBIT 1,596 1,405 -23.5 Capex 520 509 -2.1 (1) Headcount 19,700 19,626 -0.4 1. As of December 31, 2009 42
Slide 44: International
Enel SpA 1H2010 results – Financial annexes Investor Relations International €mn 1H09 1H10 % Revenues 2,649 3,111 +17.4 EBITDA 698 841 +20.5 EBIT 392 581 +48.2 Capex 417 559 +34.1 (1) Headcount 15,752 15,457 -1.9 1. As of December 31, 2009 43
Slide 45: Iberia & Latam
Enel SpA 1H2010 results – Financial annexes Investor Relations Iberia & Latam €mn 1H09 1H10 % Revenues 7,149 14,843 +107.6 EBITDA 2,416 4,047 +64.3 EBIT 1,462 2,578 +76.3 Capex 894 875 -2.2 (1) Headcount 26,305 25,490 -3.1 1. As of December 31, 2009 44
Slide 46: Enel Green Power
Enel SpA 1H2010 results – Financial annexes Investor Relations Enel Green Power €mn 1H09 1H10 % Revenues 863 974 +12.9 EBITDA 620 651 +5.0 EBIT 507 495 -2.4 Capex 326 339 +4.0 (1) Headcount 2,685 2,907 +8.3 1. As of December 31, 2009 45
Slide 47: Services & Holding
Enel SpA 1H2010 results – Financial annexes Investor Relations Services & Holding €mn 1H09 1H10 % Revenues 1,322 1,175 -11.1 Holding 356 323 -9.3 Services 509 524 2.9 Engineering & Innovation 457 328 -28.2 Other & elisions - - - EBITDA 152 72 -52.6 Holding 54 (3) -105.6 Services 89 73 -18.0 Engineer
Slide 48: Services & Holding - Continued
Enel SpA 1H2010 results – Financial annexes Investor Relations Services & Holding - Continued €mn 1H09 1H10 % EBIT 98 13 -86.7 Holding 50 (6) -112.0 Services 40 19 -52.5 Engineering & Innovation 12 5 -58.3 Other & elisions (4) (5) 25.0 Capex 31 38 +12.9 Holding - - - Services & other 31 34 +9.7 Enge
Slide 49: Focus on capex by business area (€mn)
Enel SpA 1H2010 results – Financial annexes Investor Relations Focus on capex by business area (€mn)1 +1.5% 2,590 2,629 31 38 326 339 894 875 417 559 S&H EGP 520 Iberia & Latam 509 International 26 I&N 16 Market 376 293 G&EM 1H09 1H10 1. Continuing operations only 48
Slide 50: Disclaimer
Enel SpA Investor Relations Disclaimer This presentation may contain certain statements that are neither reported financial results nor other historical information (“forward-looking statements”). These forward-looking statements are based on Enel S.p.A.’s current expectations and projections about
Slide 51: Contact us
Enel SpA Investor Relations Contact us Investor Relations Team (investor.relations@enel.com) • Luca Torchia (Head of IR) +39 06 83053437 • Pedro Cañamero (Equity IR) +39 06 83055292 • Donatella Izzo (Fixed income IR) +39 06 83057449 Visit our website at: www.enel.com (Investor Relations) 50