Slide 1: Endesa 1Q 2019 Results
Endesa 1Q 2019 Results May 07, 2019
Slide 2: Key highlights
Key highlights EBITDA increased by +5% in a challenging market context both in electricity and gas Decarbonization Steady evolution in the regulated business Smart networks Continued efforts in efficiency: adjusted fixed (1) costs reduced by -5% Customer value Stable Net Ordinary Income (2) Efficien
Slide 3: Regulatory milestones
Regulatory milestones 1Q 2019 2Q 2019 3Q 2019 4Q 2019 2019 • CNMC empowerment • RW’s Canary Islands • Green Package auction • Integrated National • RW’s Balearic Islands • Regulatory remuneration Energy and Climate Plan auction for 2020-2025 period (PNIEC) • Self-Consumption R.D. • Energy Transition
Slide 4: Market context in 1Q 2019
Market context in 1Q 2019 Demand (1) Electricity wholesale prices Endesa output(4) (TWh) Endesa distribution area(2) (Not adjusted) Average pool prices Spain (€/MWh) -8% +14% -1.7% Industry +1.7% 18.5 Services +0.8% FY2018 57.3 €/MWh 17.0 1.2 -6% 2.0 1.1 1.4 -28% 0.2% Residential -7.0% 53% 6.6 57% 7
Slide 5: Power operational highlights
Power operational highlights Electricity sales(1) (TWh) Number of electricity customers (Thousands) -5% 0% 26.2 24.9 10,754 10,732 4.3 3.8 5.6 5.4 5,029 4,949 -2% 16.3 15.7 5,725 5,783 +1% 1Q 2018 1Q 2019 FY2018 1Q 2019 B2B(2) B2C SCVP Free Regulated Electricity sales affected by lower demand while
Slide 6: Electricity sales and energy management
Electricity sales and energy management Energy management (TWh) Integrated unitary margin (€/MWh) -4% 69.3 Sales(1) 21.3 Revenue 64.3 20.4 Energy purchases 5.9 6.2 40.9 Variable cost(2) 39.8 Mainland output +16% 15.4 14.2 Integrated margin 24.5 28.4 1Q 2018 1Q 2019 1Q 2018 1Q 2019 Free customers FY2
Slide 7: Gas operational highlights
Gas operational highlights Total sales (TWh) Gas unitary margin(1) (€/MWh) -10% -21% 2.1 28 26 1.7 Wholesale 3 business 3 2 3 CCGT sales 22 21 Retail 1Q 2018 1Q 2019 1Q 2018 1Q 2019 Number of gas customers +1% 1,604 1,619 FY2018-1Q2019 (k#) Gas margin affected by increased market volatility (1) Gas
Slide 8: 1Q 2019 consolidated results
1Q 2019 consolidated results Financial results
Slide 9: 1Q 2019 consolidated results
1Q 2019 consolidated results Financial highlights (€M) 1Q 2019 1Q 2018 Δyoy Revenues 5,085 5,169 -2% Gross Margin 1,453 1,415 +3% EBITDA 928 880 +5% EBIT 522 508 +3% Reported Net Income 363 372 -2% Net Ordinary Income (1) 363 372 -2% Net Capex(2) 357 149 +140% FCF (3) (191) (350) +45% (4) Net Debt 6
Slide 10: EBITDA evolution
EBITDA evolution €M +5% DYoY 928 880 20 46 -18 365 +14% 319 80 62 -23% 481 501 +4% 1Q 2018 Dx Non mainland Gx Gx + Sx 1Q 2019 Distribution Non mainland Gx Generation & Supply Improvement of EBITDA mainly due to liberalized business performance 1Q 2019 Results- Madrid, 07 May 2019 10
Slide 11: Regulated business
Regulated business €M Net capex(1) EBITDA 0% 561 563 Regulated margin: €774 M (-1%) 80 62 • Dx margin: €643 M (+2%) 40% • Non mainland margin: €131 M (2) €102 M (-11%) 60% 481 501 Fixed costs: €211 M (-3%) 1Q 2018 1Q 2019 Asset Management Asset Development Distribution Non mainland Customers Stable
Slide 12: Liberalized business
Liberalized business(1) €M Net capex(2) EBITDA By type By business +14% Liberalized margin: €679 M (+7%) 10% 11% 10% 365 • Electricity&Others margin: €613 M 319 65 (+11%) 17% 52 • Gas margin: €38 M (-30%) €255 M €255 M • Endesa X margin: €28 M (-13%) 267 300 73% 79% Fixed costs: €314 M (-1%) Asset M
Slide 13: From EBITDA to Net Ordinary Income
From EBITDA to Net Ordinary Income €M -406(1) -53 (2) +4 928 -107 -3 522 473 (3) 363 363 EBITDA Depreciation EBIT Net Financial Associates and Profit before Taxes Minorities Net attributable Net ordinary and Results Others taxes Income income amortization 11% Delta YoY +5% +9% +3% +89% -20% -2% -3%
Slide 14: Cash Flow
Cash Flow €M -82 -544 928 36 -3 335 -526 0 -191 11% (2) (3) (4) EBITDA Provisions paid Working capital Income Taxes Financial CFO Cash Capex FCF & Other(1) Expenses Delta YoY +5% +28% -39% -70% -77% 13x +41% +45% (1) Net working capital + Regulatory NWC + non cash items (2) CFO: Net Cash Flows from
Slide 15: Net financial debt analysis
Net financial debt analysis €M Net debt evolution Gross and net debt 7,139 9 6,897 6,177 242 Cash & Derivatives 5,956 191 741 881 407 5,770 186 recognized as financial assets 810 Net debt 6,897 5,770 5,956 6,016 4,960 2018 1Q 2019 2019 Gross debt structure FY 2018 IFRS 16 2018 Adjusted FCF Dividends
Slide 16: Final Remarks
Final Remarks EBITDA evolution supported by our liberalized business Decarbonization Smart Strong investment effort to lead the Energy Transition networks Customer value Overdelivery on efficiency in a new investment cycle Efficiency through digitalization Progressing to meet 2019 guidance 1Q 2019 R
Slide 17: Appendix
1Q 2019 consolidated results Appendix
Slide 18: Installed capacity and output
Installed capacity and output Total output(1) (GWh) Total output (GWh) -8% GWh 1Q 2019 18,512 (and chg. vs. 1Q 2018) Total Output (1) 17,032 Total 3,085 17,032 -8% 2,869 Hydro 1,450 -28% 874 Nuclear 7,084 7% 956 3,360 Coal 4,059 -23% 3,019 Natural gas 1,844 7% 1,323 508 Oil-gas 1,449 -12% 1,214 1,14
Slide 19: Gross margin evolution
Gross margin evolution €M +3% 1,453 DYoY 1,415 13 42 - 17 637 679 +7% 148 131 -11% 630 643 +2% 1Q 2018 Dx Non mainland Gx Gx + Sx 1Q 2019 Distribution Non mainland Gx Generation & Supply 1Q 2019 Results- Madrid, 07 May 2019 19
Slide 20: Fixed costs evolution
Fixed costs evolution €M -€10 M -2% -€30 M -5%(1)(2) 535 14 (1) 549 (2) Personnel 519 6 525 costs 213 227 +8% 245 258 O&M costs 354 354 -12% 312 305 Capitalized -32 -32 -38 -38 costs 1Q 2018 1Q 2018 1Q 2019 1Q 2019 Reported Adjusted Adjusted Reported (1) 1Q 2018 Fixed costs adjusted by: Provisions f
Slide 21: Endesa: financial debt maturity calendar
Endesa: financial debt maturity calendar €M Gross balance of maturities outstanding at 31 March 2019: €7,120 M(1) Bonds and other marketable securities (2) Bank Debt Other debts 4,772 3,449 Endesa's liquidity 49 1,821 covers 35 months 52 of debt maturities 1,720 72 57 129 60 151 50 247 1,311 0 91 19
Slide 22: Endesa: 1Q 2019 P&L
Endesa: 1Q 2019 P&L Gx+Sx Dx Structure Adjustments TOTAL Income 4,454 686 133 -188 5,085 Procurements and services -3,630 -43 -4 45 -3,632 Gross margin 824 643 129 -143 1,453 Self-constructed assets 7 29 2 0 38 Personnel expenses -133 -75 -52 2 -258 Other fixed operating expenses -279 -96 -69 139 -3
Slide 23: Endesa: 1Q 2018 P&L
Endesa: 1Q 2018 P&L Gx+Sx Dx Structure Adjustments TOTAL Income 4,538 681 128 -178 5,169 Procurements and services -3,723 -51 -23 43 -3,754 Gross margin 815 630 105 -135 1,415 Self-constructed assets 5 25 2 0 32 Personnel expenses -121 -64 -40 12 -213 Other fixed operating expenses -293 -110 -80 129
Slide 24: Glossary of terms (I/II)
Glossary of terms (I/II) Reference note (#) of Consolidated Item Calculation Management Report Cost of gross financial debt / gross average financial debt: (€33 M x (360/90) + €1 M) / €7,438 M = Average cost of debt (%) 4.1 1.8% (Principal x number of days of term) / (Principal in force at the end o
Slide 25: Glossary of terms (II/II)
Glossary of terms (II/II) Reference note (#) of Consolidated Item Calculation Management Report Gross tangible (€347 M) and intangible (€29 M) Capex - assets from clients’ contributions and Net Capex (€M) 4.3 subsidies (€19 M) = €357 M Long and short term financial debt (€5,283 M + €1,856 M) - Cash
Slide 26: 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