Slide 1: Endesa 9M 2012 results
08 | 11 | 2012 endesa 9M 2012 results
Slide 2: Business context 9M 2012
consolidated results 9M 2012 Business context 9M 2012 Demand Spain(1) Endesa distribution area(2) Average growth weighted by TWh Spain: Latin demand +4.5% America: solid decrease due Industry -2.7% 5.9% 5.9% growth in all to lower Services -0.2% 4.6% countries industrial -0.1% 3.5% 3.9% -0.7% mainly
Slide 3: Stable operating results despite regulatory and economic conditions
consolidated results 9M 2012 Stable operating results despite regulatory and economic conditions 9M 2012 9M 2011 Change M Revenues 25,463 24,604 +3% Gross margin 8,182 8,157 +0% EBITDA 5,457 5,449 +0% Spain&Portugal&Others 3,073 3,124 -2% Endesa Latin America 2,384 2,325 +3% EBIT(1) 3,648 3,843 -5%
Slide 4: On track to achieve efficiency and synergy targets with Enel for FY 2012
consolidated results 9M 2012 On track to achieve efficiency and synergy targets with Enel for FY 2012 Synergy plan with Enel Zenith plan with Enel Savings for Endesa Savings for Endesa M M FY2012 target 909 100% FY2012 207 100% target Distribution 35% Distribution 59% Generation & energy Achieved in
Slide 5: Sound financial position
consolidated results 9M 2012 Sound financial position Net debt evolution in 9M 2012 ( M) 11,002 3,101 1,092 273 11,107 1.5x 827 84 1,476 Enersis 3,883 Pending 4,239 1.3x 5,852 regulatory assets Tariff Def(1): - 1,502 M Securitization(2): 675 M Spain& Portugal 7,119 &others Debt net of 6,868 1.7x 5,2
Slide 6: Spain: regulation update (I)
consolidated results 9M 2012 Spain: regulation update (I) Full year impact RDL Decrease of distribution remuneration RDL 13/2012 13/2012and and 10% reduction on national coal volumes and capacity RDL RDL payments - 396 M 20/2012 20/2012 Decrease of non-mainland generation remuneration Supreme Suprem
Slide 7: Spain: regulation update (II)
consolidated results 9M 2012 Spain: regulation update (II) Measures announced on September 14th to eliminate tariff deficit System Endesa (estimated (estimated impact) impact) 6% tax on electricity generation - 1.4 bn - 0.3 bn “Green cent” tax on coal, fuel-oil and natural gas - 1.3 bn - 0.3 bn Tax
Slide 8: Spain: regulation update (III)
consolidated results 9M 2012 Spain: regulation update (III) A number of improvements to the announced measures are needed according to our opinion Non-mainland generation: consider the new taxes as costs, to be taken into account in the calculation of its regulated return Domestic coal generation: c
Slide 9: Latam: regulation update
consolidated results 9M 2012 Latam: regulation update Regulatory changes in concessions and industry tax charges aiming to reduce the tariffs up to 20% Brazil Brazil No expected impact for Endesa’s subsidiaries: concessions to be renewed after 2020 President signed and sent to the Senate the “Electr
Slide 10: Enersis capital increase update: progress to date and tentative calendar
consolidated results 9M 2012 Enersis capital increase update: progress to date and tentative calendar 1 Independent appraisers issue their report Recent Recent 2 Independent Directors Committee issue its report on the transaction milestones milestones achieved 3 Directors individually give their opi
Slide 11: Spain&Portugal&Others 9M 2012
spain&portugal&others 9M 2012
Slide 12: Highlights in 9M 2012
spain&portugal&others 9M 2012 Highlights in 9M 2012 Regulated business: negatively impacted by latest regulatory measures partially compensated by non-recurrent items Generation (+7%)(1) with outstanding performance of imported coal (+46%) and nuclear (+14%) Better liberalized margins supported by h
Slide 13: Resilient results despite challenging business context
spain&portugal&others 9M 2012 Resilient results despite challenging business context M 9M 2012 9M 2011 Change Revenues 17,442 17,074 +2% Gross margin 4,783 4,827 -1% EBITDA 3,073 3,124 -2% EBIT(1) 1,836 1,993 -8% Net finance expenses 224 318 -30% Net attributable income(2) 1,269 1,465 -13% Impact of
Slide 14: Positive performance of liberalised margins
spain&portugal&others 9M 2012 Positive performance of liberalised margins M 4,827 +6% 4,783 -6% -1% 9M 2011 Liberalized business Regulated business 9M 2012 Higher sale price to final customer Impact of RDL 13/2012 and RDL 20/2012 in Dx and Social bonus (Supreme Court ruling) non-mainland generation
Slide 15: Liberalized business supported by higher generation and selling prices
spain&portugal&others 9M 2012 Liberalized business supported by higher generation and selling prices Market margins evolution: wholesale price Strong increase in mainland output(1) vs. price to end customers GWh /MWh 70 48,732 62 /MWh +7% 45,471 60 58 /MWh 3,109 CCGT 4,696 50 /MWh 50 /MWh 50 12,269
Slide 16: Energy management optimization
spain&portugal&others 9M 2012 Energy management optimization Gross electricity sources Gross electricity sales 93 TWh 93 TWh LRT Auctions (1) 20 20 LRT (1) Energy purchases 10 Pool sales Unit purchase cost 50/MWh 24 (stable vs 9M2011) 51% 59 TWh 63 Liberalized Mainland ordinary regime including 49 n
Slide 17: Focus on core business and portfolio optimization
spain&portugal&others 9M 2012 Focus on core business and portfolio optimization Endesa EndesaIreland Ireland Closing of Endesa Ireland sale on 9th October 2012 disposal disposal Price: 286 M (equity) + 75 M (intercompany loan) Acquisition Acquisitionof ofgas gas Closing of acquisition of 224 thousan
Slide 18: Latin America 9M 2012
latin america 9M 2012
Slide 19: Highlights in 9M 2012
endesa latin america 9M 2012 Highlights in 9M 2012 Resilient to global economic slowdown: distribution sales (+4.6%)(1) Increase in generation output (+5%) explained by Brazil (+48%), Colombia (+19%) and Chile (+5%) Generation in Chile: 3rd year of consecutive drought Brazil: no expected impact from
Slide 20: Solid operating results despite difficult business environment
endesa latin america 9M 2012 Solid operating results despite difficult business environment M 9M 2012 9M 2011 Change Revenues 8,021 7,530 +7% Gross margin 3,399 3,330 +2% EBITDA 2,384 2,325 +3% EBIT(1) 1,812 1,850 -2% Net finance expenses(2) 372 258 +44% Net income 918 1,153 -20% Net attributable in
Slide 21: Chile: Severe drought impacting generation results
endesa latin america 9M 2012 Chile: Severe drought impacting generation results Generation output Distribution sales +5% GWh Generation output increased, +5% although hydro still below average 14,499 15,296 10,223 10,775 Solid growth in distribution sales 9M 2011 9M 2012 9M 2011 9M 2012 Gx EBITDA Dx
Slide 22: Brazil: better results despite Coelce tariff revision and CIEN one off in 2011
endesa latin america 9M 2012 Brazil: better results despite Coelce tariff revision and CIEN one off in 2011 Generation output Distribution sales GWh +7% Higher generation (+48%) supported by higher hydro output (+35%) and thermal dispatch 14,192 15,209 +48% Higher distribution volumes due to 3,544 w
Slide 23: Colombia: outstanding performance even stripping out net worth tax in 2011
endesa latin america 9M 2012 Colombia: outstanding performance even stripping out net worth tax in 2011 Generation output Distribution sales GWh +19% +3% Strong increase in generation due to better hydro conditions 10,249 9,568 9,882 Higher sales due to increase in 8,616 demand 9M 2011 9M 2012 9M 20
Slide 24: Peru: stable results
endesa latin america 9M 2012 Peru: stable results Generation output Distribution sales -4% GWh Stable hydro output and lower +5% thermal generation 7,307 6,981 Higher sales supported by 4,895 5,142 economic growth 9M 2011 9M 2012 9M 2011 9M 2012 Gx EBITDA Dx EBITDA M +1% Gx: higher selling prices an
Slide 25: Argentina: worsening situation due to unsustainable conditions
endesa latin america 9M 2012 Argentina: worsening situation due to unsustainable conditions Generation output Distribution sales GWh -6% +2% Thermal output decreases due to planned outages and lower dispatch 12,518 13,064 13,308 11,715 Slowdown in distribution volumes 9M 2011 9M 2012 9M 2011 9M 2012
Slide 26: Final remarks 9M 2012
final remarks 9M 2012
Slide 27: Final remarks
final remarks 9M 2012 Final remarks Stable operating results in Spain & Portugal despite negative impact from regulatory measures and weak market conditions Spain A number of improvements to the announced regulatory measures are needed Solid operating results in Latin America Latin America Progress
Slide 28: Appendices 9M 2012
appendices 9M 2012
Slide 29: Installed capacity and output
appendices 9M 2012 Installed capacity and output(1) Spain& Endesa Latin MW at 30/09/12 Portugal&Others America Total Total 24,306 15,810 40,116 Hydro 4,716 8,666 13,382 Nuclear 3,681 - 3,681 Installed Coal 5,805 522 6,327 capacity Natural gas 4,878 3,960 8,838 Oil-gas 5,226 2,575 7,801 CHP/Renewable
Slide 30: Latin America: generation and distribution figures
appendices 9M 2012 Latin America: generation and distribution figures Generation Output Distribution Sales GWh GWh +5.4% 47,785 +4.6% 54,315 51,942 45,335 -6% 11,715 Argentina 13,308 +2% 12,518 13,064 3.544 +48% 2.395 Brazil 15,209 +7% 14,192 15,296 +5% 14,499 Chile 10,223 10,775 +5% +19% Colombia 8
Slide 31: Latin America: Ebitda break down by country and business nature
appendices 9M 2012 Latin America: Ebitda break down by country and business nature Ebitda Generation(1) Ebitda Distribution M M 1,226 1,169 1,174 +12%(3) 99 40 -60% Argentina 1,048 168 -4%(2) 183 +9% 507 -1% Brazil 307 -35% 511 472 Chile 209 +14% 184 457 +52% 301 Colombia 377 +44% 261 186 187 +1% Pe
Slide 32: Endesa (excl. Enersis): financial debt maturity calendar
appendices 9M 2012 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 30 September 2012: 7,317 M(1) Bonds (2) Bank debt and others ECPs and domestic commercial paper (3) 4,825 Endesa' Endesa' ss liquidity liquidityexcl. excl. 4,350 Enersis Enersis cov
Slide 33: Enersis: financial debt maturity calendar
appendices 9M 2012 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 30 September 2012: 5,194 M(1) Bonds Bank debt and others 2,769 399 Enersis Enersishas has sufficient sufficient liquidity liquidityto to cover cover 879 2,370 807 15 months 15 months 494 245 266 3
Slide 34: Financial policy and net debt structure
appendices 9M 2012 Financial policy and net debt structure Structure of Endesa's net debt ex-Enersis Enersis net debt structure M 6,868 6,868 M US$ 1% 4,239 4,239 Floating 61% Floating 46% Other 44% Euro 99% Chilean Peso 15%(1) Fixed 54% Fixed 39% US$ 41% Average cost of debt 3.8% 8.5% • Net debt st
Slide 35: Well on track on forward sales strategy
appendices 9M 2012 Well on track on forward sales strategy Spain & Portugal Latin America (% estimated mainland output hedged) (% estimated output hedged) 100% Contracting level in 75-80% Latin America that optimizes margin 65-70% and risk exposure 45-50% 2012 2013 2012 2013 32% of the generation so
Slide 36: Endesa has major direct holdings in companies other than Enersis in Latin America
appendices 9M 2012 Endesa has major direct holdings in companies other than Enersis in Latin America Proportionate Proportionate M % direct 9M 2012 30.09.2012 stake EBITDA Net debt 60.6% Codensa 26.7% 98 84 Emgesa 21.6% 99 175 Direct holdings Endesa Brasil 28.5% 213 -30 Ampla(1) 7.7% 22 38 60% Edesu
Slide 37: Disclaimer
disclaimer Disclaimer ! "#$ % & ' (() ' * ' ' ' ' * ' ' *' * * ! "# * (() + , " - . # /001 2 " # * & & ' ' ' ' * ' ' ' & 3 ' 3 ' 4 3 ' ! 5 ! * ' 3 ' ' ' , 6 & - # ' " * 7 & ' ' * ' ' 3 ' * ( & ' ' % * * . % ! "# " . " ( 8 9 : ; " <( 9:= " > * 3 37
Slide 38: Consolidated results 9M 2012
consolidated results 9M 2012 38