Slide 1: Endesa FY 2016 Results
Endesa FY 2016 Results 23/02/2017
Slide 2: Agenda
1. Highlights and key financial figures 2. Endesa’s performance in 2016 market context 3. Financial results 4. Final remarks FY 2016 Results- Madrid, 23 February 2017 2
Slide 3: Agenda
1. Highlights and key financial figures 2. Endesa’s performance in 2016 market context 3. Financial results 4. Final remarks FY 2016 Results- Madrid, 23 February 2017 3
Slide 4: 2016 financial targets exceeded
2016 financial targets exceeded Strong Net Income figure (+30%) up to €1,411 M Proposal to pay €1.333 gross DPS (+30%) against 2016 Results Sound underlying(1) EBITDA evolution (+11%) supported by the liberalized business 3% like-for-like(2) drop in fixed costs (1) Net of 2015 CO2 swap transaction (
Slide 5: Key financial figures
Key financial figures €M 2016 2015 Change Like-for-like EBITDA 3,432 3,039 +13% +11%(1) Net attributable income 1,411 1,086 +30% +27%(2) Cash flow from operations 2,995 2,656 +13% FY 2016 FY 2015 Change Net financial debt(3) 4,938 4,323 +14% Like-for-like(1) EBITDA grew by 11% (1) Net of 2015 CO2
Slide 6: Agenda
1. Highlights and key financial figures 2. Endesa’s performance in 2016 market context 3. Financial results 4. Final remarks FY 2016 Results- Madrid, 23 February 2017 6
Slide 7: Market context in 2016
Market context in 2016 Demand Electricity wholesale prices Average pool prices Spain (€/MWh) Spain(1) Endesa distribution area(2) +1.4% (Not adjusted) +0.6% +0.8% Industry +0.9% Services +3.5% -21% -0.1% 50 50 Residential -0.8% 40 2015 2016 2017e (3) Adjusted for weather and working days Not adjuste
Slide 8: Endesa's performance in 2016 market context (I/II)
Endesa’s performance in 2016 market context (I/II) Energy management Output(1) (GWh) Electricity sales(1) (GWh) 7,373 18,439 (-5%) 22,891 (+7%) (-18%) 12,634 Unitary integrated (+2%) 16,297 margin: 13,367 (-7%) 1,212 100,823 69,831 (+2%) (-4%) (n/a) €21.8/MWh (+0%) (+8% vs. 2015) 33,094 45,347 (0%)
Slide 9: Endesa's performance in 2016 market context (II/II): Regulatory update
Endesa’s performance in 2016 market context (II/II) Regulatory update Latest main regulatory developments 2017 access tariffs: Access tariffs remained unchanged Access costs include additional ~€600 M renewables remuneration related to 2nd regulatory semi period Renewables: revision Capa
Slide 10: Agenda
1. Highlights and key financial figures 2. Endesa’s performance in 2016 market context 3. Financial results 4. Final remarks FY 2016 Results- Madrid, 23 February 2017 10
Slide 11: Financial results
Financial results €M 2016 2015 Change Like-for-Like Revenues 18,979 20,299 -7% Gross Margin 5,652 5,481 3% (1) EBITDA 3,432 3,039 13% 11% EBIT 1,965 1,598 23% Net Financial Results (182) (186) -2% Share of profit from associates (59) (15) 293% Income tax (298) (301) -1% (2) Net attributable income 1
Slide 12: 2016 EBITDA breakdown
2016 EBITDA breakdown 2015 2016 % €M Reported Like-for-Like €M % Change (%) Change (4) (%) 1,180 35% Generation & Supply(1) Generation & Supply(1) 37% 1,131 +4% +25% 11% 11% Non-mainland Gx(2) Non-mainland Gx(2) 339 +15% +13% 389 Distribution 52% +14% +2% 1,788 52% Distribution 1,569 75 EGPE(3) 2% E
Slide 13: Regulated business
Regulated business Gross margin evolution -1% €M 3,065 3,037 18 -46 Non-mainland generation(1) 620,0 638 Distribution 2,445 2,399 (1) 2015 Gross Margin Dx Non-mainland Gx 2016 Gross Margin Stable gross margin FY 2016 Results- Madrid, 23 February 2017 (1) Non-mainland generation Gross Margin figure
Slide 14: Liberalized business
Liberalized business(1) Gross margin evolution +8% €M 2,615 2,416 104 104 2016 Gas sales 2015 Gas sales 120 (78,129 GWh) (71,587 GWh) -25 260 285 8,921 8,588 2,131 2,251 19,474 14,926 49,734 48,073 (3) 2015 Electricity + VAS Gas Business EGPE 2016 Gross Margin + Other Business Gross Margin Domestic
Slide 15: Liberalized business: 2016 energy management
Liberalized business 2016 energy management Energy (TWh) Unitary values breakdown (€/MWh) Sales 83.0 84.5 Unitary revenue 63.9 59.8 Energy purchases 22.3 28.5 Unitary variable cost(1) 43.6 38.0 Mainland +8% output 60.7 56.0 Unitary margin 20.3 21.8 2015 2016 2015 2016 €38.0/MWh Production cost(2):
Slide 16: Liberalized business: Value added services
Liberalized business Value added services VAS Margin evolution 2016 VAS Margin breakdown Contribution from VAS categories (€M) €M €M Maintenance services 13 +14% Monitoring, control and energy consultancy 11 27% 31 90 €90 M Energy Efficiency Solutions and Renewables 6 79 59 Maintenance services 39 2
Slide 17: Fixed costs evolution (I/III)
Fixed costs evolution (I/III) €M -9% -3% 2,442 2,220 403 2,039 1,968 252 Personnel -3% costs 1,332 1,128 929 898 -2% O&M costs 1.187 1,209 1,212 1.212 Capitalized costs -102 -102 -117 -117 2015 2015 2016 2016 Reported Adjusted Adjusted Reported 3% decrease in like-for-like(1) fixed costs (1) Inclu
Slide 18: Fixed costs evolution (II/III)
Fixed costs evolution (II/III) Latest workforce restructuring plans(1) €M # Provision amount: €349 M 2014 People involved 473 Annual average savings ~ €45M 1.085 729 Provision amount: €380 M 2015 People involved 612 Amount Headcount Annual average savings ~ €55M 325 €M 226 110 # Corporat
Slide 19: Fixed costs evolution (III/III)
Fixed costs evolution (III/III) Monitoring cash cost and key performance indicators Cash Cost evolution KPI’s evolution and degree of fulfilment 2019 target Distribution Unitary cost (3) -8% (€/customer) 53 46 49 2016 Adjusted 1.97 2015 2016 Opex (1) Unitary cost (3) 2016 Maint. Generation (k€/MW) -
Slide 20: 2016 Capex breakdown
2016 Capex breakdown 2016 2016 Net CAPEX by business (€bn) Net CAPEX by nature (€bn) Main projects 6% 2% Smart meters and ~€0.2 bn remote control 60% 49% 0.9 (1) 0.9 (1) 40% IED Imported Coal ~€0.1 bn 37% Nuclear fleet ~€0.1 bn Maintenance 6% Distribution Mainland Generation Maintenance Growth Non-M
Slide 21: From EBITDA to Net Income
From EBITDA to Net Income €M -1,467 -182 3,432 -73 -299 1,965 1,710 1,411 EBITDA Depreciation EBIT Net Financial Associates and Profit before Taxes and Net attributable and amortization Results Others taxes 11% minorities Income 2015 3,039 -1,441 1,598 -186 -21 1,391 -305 1,086 Change (%) +13% +2% +
Slide 22: Net financial debt analysis
Net financial debt analysis Net financial debt evolution Net debt / 1.4x 1.4x EBITDA ratio €M 4,938(2) 4,323 Regulatory working 1,089 capital(3) 292 1,207 2,995 4,961 4,031 1,314 FY 2015 Cash flow Capex+Others EGPE acquisition Dividends FY 2016 -23 Regulatory working Net debt Cash flow from Capex(1)
Slide 23: Agenda
1. Highlights and key financial figures 2. Endesa’s performance in 2016 market context 3. Financial results 4. Final remarks 23
Slide 24: Sustainability
Sustainability Monitoring Endesa’s contribution to UN Sustainable Development Goals Energy mix decarbonization by 2050 Digitalization + VAS Electricity access to all vulnerable customers 2016 target achieved YE 2016 2019 Target ~34% 43% ~47% YE 2016 Grid Automatization CO2 Mt Smart Meters (M) ~9.2
Slide 25: Shareholder remuneration
Shareholder remuneration Gross DPS evolution 1.333(1) €/Share 1.026 (1) 0.633 0.626 0.70 0.40 Payment date 1 2016 Jan Jul2 2016 Jan 32017 4 Jul 2017 100% pay-out of 2016 Results 2016 gross DPS: €1.333(1) (100% pay-out), an increase of 30% vs. 2015 FY 2016 Results- Madrid, 23 February 2017 (1) Subj
Slide 26: Delivering and exceeding 2016 targets
Delivering and exceeding 2016 targets 2016 2016 target reported CAGR (€bn) (€bn) 2017e (€bn) 2018e (€bn) 2019e (€bn) 2016-2019 EBITDA ~ 3.2 3,4 3.4 3.5 3.7 ~ +3% Net Income ~ 1.3 1,4 1.4 1.5 1.7 ~ +6% DPS ~ 1.26 1.333 1.37 1.42 1.57 ~ +6% (€/share)(1) Minimum DPS for 2017 1.32 Cumulative 3.2 billion
Slide 27: High cash flow generation supports Endesa's growth
Exceeding financial targets Outstanding Net income increase (+30%) Adjusted EBITDA(1) increases by +11% thanks to the liberalized business º 3% like-for-like(2) fixed costs reduction EGPE consolidation provides solid growth platform High cash flow generation supports Endesa’s growth strategy and att
Slide 28: Appendix
Appendix Endesa FY2016 Results 28
Slide 29: Installed capacity and output
Installed capacity and output Mainland output(1) (GWh) Total output (GWh) GWh FY 2016 60,686 (and chg. vs. FY 2015 Total Output (2) 3.477 55,985 Total 69,831 -4% -8% 3.858 Hydro 7,173 0% 15.294 12.240 Nuclear 25,921 1% Coal 21,336 -18% 8.983 6.793 Natural gas 7,425 -1% Oil-gas 6,764 4% Renewables 1.
Slide 30: Endesa: financial debt maturity calendar
Endesa: financial debt maturity calendar Gross balance of maturities outstanding at 31 December 2016: €5,367 M(1) Bonds Bank debt and others ECPs (2) 3,924 Endesa's 3,892 liquidity covers 1,159 17 months of 68 101 87 debt maturities 932 68 86 87 32 191 36 15 2.017 2.018 2.019 2.020 RE ST O 2017 2018
Slide 31: Gross financial debt structure
Gross financial debt structure as of December 31st 2016 Structure of Endesa's gross debt €M 5,367 5,367 Floating 32% Euro 100% Fixed 68% By interest rate By currency Average cost of debt 2.5% FY 2016 Results- Madrid, 23 February 2017 31
Slide 32: Glossary of terms (I/II)
Glossary of terms (I/II) Average cost of debt (%): (cost of financial debt) / gross average financial debt Average life of debt: (principal x number of days of term) / (principal in force at 31 December x 365 days) Cash flow from operations: Net cash provided by operating activities Debt mat
Slide 33: Glossary of terms (II/II)
Glossary of terms (II/II) Net financial results: Financial Revenues - Financial Expenses + Foreign Exchanges Regulatory working capital: part of the working capital that is specifically related to the balances of CNMC settlements Revenues: Sales + Other operating revenues Unitary revenue: Re
Slide 34: 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 35: Endesa Corporate
Endesa Corporate Get full information of the company on Endesa Corporate, the Endesa App for iPhone, iPad and Android devices. Download from App Download from Google Store Play 35