Endesa S.a. · BME:ELE
Endesa — H1 2024 Earnings Presentation
32 slides from Endesa's earnings presentation, Jul 24, 2024
Slide 1: First Half 2024 Consolidated Results
First Half 2024 Consolidated Results July 24th, 2024
Slide 2: 1H 2024 Consolidated results
1H 2024 Consolidated results José Bogas CEO
Slide 3: Key highlights of the period
Key highlights of the period Economic Earnings Cash performance evolution generation EBITDA Net Income FFO 2.4 €bn 0.8 €bn 1.2 €bn -2.5% vs PY -9% vs PY -0.4 €bn vs PY First half delivery supports Sound cash generation: FY 2024 targets FFO/ND at 40% 1H 2024 Results - Madrid, 24 July 2024 (1) See det
Slide 4: Main operational KPIs
Main operational KPIs Gross Capex by business(1) 1H 2023 1H 2024 RES Capacity (GW) 9.3 10.1 +0.8 GW CO2 GHG free production on total(2) 82% 90% +8 p.p. Fixed price power sales(3) 44% (TWh) 26 28 +6% 0.9 €bn -16% vs. 1H 2023 Free power customers (mn) 6.9 6.7 -0.2 mn 22% ~70% TIEPI(4) (min) 25 25 Flat
Slide 5: Market context
Market context Signs of demand recovery pointing to a trend shift Gas TTF spot prices (€/MWh) CO2 spot prices (€/t) Average Iberian power pool prices (€/MWh)(1) 80 110 2023 Average: 86.7 €/t 2023 Average: 44.6 €/MWh -56% 70 100 2024 Average: 63.8 €/t 2024 Average: 29.5 €/MWh 60 90 50 80 40 70 - 26%
Slide 6: Regulatory update
Regulatory update Grids must become enablers of the decarbonization process → Not adequately dimensioned to meet the new demand requirements → Rejection of 30GW(1) requests for access between 2020 and 2023 Distribution Need to boost network investments by 2030… → …Which must be adequately remunerate
Slide 7: Mainland installed capacity and production
Mainland installed capacity and production Installed capacity(1) (GW) Production(2) (TWh) -3% 0.8 -48% Cleaner generation mix: 17.8 17.2 10% • +36% renewable output -1.4 -2% ➢ +63% hydro output 9.3 10.1 +9% (4.4 TWh) 25 • Coal free Gx mix 50% 3.3 40% +1% vs. 1H 2023 3.3 FLAT 90% CO2 free output 5.2
Slide 8: Liberalized power sales and customers
Liberalized power sales and customers Customers(1) (mn) Sales(2) (TWh) -2% -3% Very competitive environment intensified 6.9 6.7 38 37 by low prices context 11 11 Commercial initiatives to 6.5 B2B B2C increase loyalty, 6.4 focusing on added value 27 26 customer portfolio 0.3 0.3 1H 2023 1H 2024 1H 20
Slide 9: Renewable and supply growth support the solid performance of our integrated strategy
Renewable and supply growth support the solid performance of our integrated strategy Output / Sales (TWh) Free power unitary margin(2) (€/MWh) Hedged inframarginal output(3) CO2-free output / Fixed price sales 81% -% 41 6 58 58 98% 94% 30 8 -27% 35 TWh 5 Free sales FY2023 2024e 2 52 €/MWh ~ 54 €/MWh
Slide 10: Gas margin on track to achieve FY guidance
Gas margin on track to achieve FY guidance Total volumes(1) (TWh) Gas unitary margin(2) (€/MWh) Volumes hedged(3) (%) -20% 45 ~2 9 36 93% 93% 6 70% ~1 35 30 1H 2023 1H 2024 1H 2023 1H 2024 2024 2025 2026 Portfolio FY2023 FY2023 2024e Sales CCGT vs. 2024e -2.5 €/MWh >2 €/MWh volumes 65 57 51 (TWh) (1
Slide 11: 1H 2024 Financial results
1H 2024 Financial results Marco Palermo CFO
Slide 12: Key financial highlights
Key financial highlights €mn EBITDA Net Income FFO -2.5% -9% -0.4 €bn 2,476 2,413 879 1,615 800 1,014 285 1,192 1,334 Q2 508 Q2 1,712 Q2 1,025 1,462 594 1,079 Q1 292 Q1 167 Q1 12 -97 1H 2023 1H 2024 1H 2023 1H 2024 1H 2023 1H 2024 -12% Net Ordinary Income(1) 879 772 1H 2024 Results - Madrid, 24 July
Slide 13: EBITDA stabilization driven by strong delivery in Q2
EBITDA stabilization driven by strong delivery in Q2 in line with expectations €mn EBITDA by business(1) -63 €mn -2.5% 2,476 2,413 YoY -358 53 6 644 198 -36% 1,002 38 Structure&Adj.: 1H 2023: -208 €mn 1.2% 478 +9% extraordinary levy 440 1H 2024: -202 €mn 1.2% Gx+Sx: -122 €mn (-7%) extraordinary lev
Slide 14: Generation & Supply EBITDA
Generation & Supply EBITDA €mn EBITDA -122 €mn -7% Free power margin evolution driven by : -73 20 - Thermal and Short Position -89 20 normalization… + …partially offset by strong renewable resources and Gross margin -142 €mn supply margin expansion 1,775 1,653 Other margin: - Positive MtM booked in
Slide 15: Grids EBITDA
Grids EBITDA €mn EBITDA +53 €mn +6% 43 Gross margin aligned to 10 previous year Fixed cost and Others decreased from provision 955 reversal and efficiencies 902 EBITDA 1H 2023 Gross margin Fixed costs & others EBITDA 1H 2024 1H 2024 Results - Madrid, 24 July 2024 15
Slide 16: Fixed costs evolution
Fixed costs evolution Fixed costs(1) evolution (€mn) Unitary costs(2) -2% 1H 2023 1H 2024 Unitary cost Grids 43 43 Flat 1,084 €/grid cust. 1,061 43 -66 Generation(3) 520 498 -4% Unitary cost €/MWh 18 13 -29% Customers 711 688 -3% Cost to Serve €/customer 10 10 Flat -147 -125 Structure 1H 2023 CPI&Gr
Slide 17: Below EBITDA evolution
Below EBITDA evolution Profit & loss (€mn) 1H 2023 1H 2024 Δ yoy Δ% EBITDA 2,476 2,413 (63) -2.5% D&A and Provisions increase due to investment effort and bad debt D&A and Provisions (955) (1,030) (75) adjustments Financial results & Others (260) (246) 14 Stable Financial results driven by lower ave
Slide 18: Improved cash generation: FFO up versus Q1 2024
Improved cash generation: FFO up by around 1 €bn versus Q1 2024 €mn Working capital & others -0.7 €bn(1) -141 -118 1,722 -607 530 -530 €mn -124 Gas award 2,413 Gas award -231 1,192 1 €bn cash generation in Q2 EBITDA Provisions paid Regulatory Remaining Income Taxes Net Financial FFO working capital
Slide 19: Financial debt evolution
Financial debt evolution €bn Net financial debt (1) Gross financial debt (1) +4% -1% 13.7 13.6 10.4 10.8 Regulatory 0.5 0.7 3.3 2.8 working capital 0.6 1.2 1.0 9.9 10.1 10.4 10.8 FY2023 FFO Cash Capex(2) Dividends 1H 2024 FY 2023 1H 2024 Net financial debt Cash&Others Net financial 2.8x 2.9x debt /
Slide 20: 1H 2024 Closing remarks
1H 2024 Closing remarks José Bogas CEO
Slide 21: Well on track to meet full year guidance
Well on track to meet full year guidance €bn EBITDA evolution 4.9-5.2 2H2024: ~2.6 / 2.8 €bn 0.2 3.8 0.2 Extraordinary levy 1.5 1.3 Gas 0.5 award 1.1 1.0 0.9 0.4 Q1 2023 Q1 2024 Q2 2023 Q2 2024 Q3 2023 Q3 2024e Q4 2023 Q4 2024e FY 2023 FY 2024e 1H 2024 Results - Madrid, 24 July 2024 21
Slide 22: Closing Remarks
Closing Remarks 1 2 3 4 Effective Unique regulatory management of the Focus on opportunity to Results on track to volatile market optimizing support achieve FY 2024 context thanks to customer portfolio Spanish Energy guidance our integrated added value Transition targets strategy 1H 2024 Results - M
Slide 23: 1H 2024 Annexes
1H 2024 Annexes endcesa
Slide 24: P&L 1H 2024 vs. 1H 2023
P&L 1H 2024 vs. 1H 2023 €mn 1H 2024 1H 2023 % Var. Income 10,416 13,121 -21% Procurements and services (6,289) (8,057) -22% Income and expenses from energy derivatives (690) (1,506) -54% Gross margin 3,437 3,558 -3% Fixed operating costs and other results (1,024) (1,082) -5% EBITDA 2,413 2,476 -3% D
Slide 25: Endesa: 1H 2024 P&L
Endesa: 1H 2024 P&L €mn Gx+Sx Conventional Gx Renewables Retail Endesa X Dx Structure Adjustments TOTAL adjustments (1) Income 3,394 661 7,608 165 (2,598) 1,267 198 (279) 10,416 Procurements and services (2,937) (60) (5,571) (89) 2,573 (73) (203) 71 (6,289) Income and expenses from energy derivative
Slide 26: Endesa: 1H 2023 P&L
Endesa: 1H 2023 P&L €mn Gx+Sx Conventional Gx Renewables Retail Endesa X Dx Structure Adjustments TOTAL adjustments (1) Income 5,627 629 10,470 190 (4,964) 1,261 233 (325) 13,121 Procurements and services (3,039) (63) (9,584) (110) 4,948 (77) (209) 77 (8,057) Income and expenses from energy derivati
Slide 27: Financial debt maturities and credit metrics
Financial debt maturities and credit metrics Gross financial debt maturity(1) (€bn) Financial debt KPIs 8.6 1H 2024 Coverage of financial debt 34 maturities (months) 3.5 Average life of financial debt 4.0 (years) 3.9 Liquidity (€bn) 8.4 3.0 5.1 Sustainable financing(2) (%) 68% 0.6 0.5 0.9 2024 2025
Slide 28: Installed capacity and output
Installed capacity and output Total net installed capacity (MW) Total output (1) (GWh) 1H 2024 2023 Var. (%) 1H 2024 1H 2023 Var. (%) Mainland 17,177 16,984 +1% 24,504 24,211 +1% Renewables (2) 10,092 9,899 +2% 9,912 7,291 +36% Hydro 4,746 4,746 0% 4,442 2,627 +69% Wind 2,893 2,884 +0% 3,603 3,307 +
Slide 29: Grids: operational parameters
Grids: operational parameters Distributed energy (TWh) TIEPI(1) (min.) Losses(2) (%) +1% +2% -0.4 p.p. 67 68 24.9 25.4 9.3 8.9 1H 2023 1H 2024 1H 2023 1H 2024 1H 2023 1H 2024 Energy to own customers(2) (TWh) 52 51 -2% (1) Tiempo de Interrupción Equivalente a la Potencia Instalada (Installed Capacity
Slide 30: 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 31: Disclaimer: Alternative Performance Measures
Disclaimer Alternative Performance Measures This presentation includes certain alternative performance measures (“APMs”) for the purposes of Commission Delegated Regulation (EU) 2019/979, of March 14, 2019 and as defined in the Guidelines on Alternative Performance Measures issued by the European Se
Slide 32: IR Team
IR Team Contact us Mar Martinez Head of Investor Relations Investor Relations team Contacts Isabel Permuy Javier Hernandez Email: ir@Endesa.es Francesc Trilla Juan Carlos Jimenez Phone: + 34 91 213 15 03 Sonia Herranz + 34 91 213 90 49 Paloma de Miguel Website: www.Endesa.com 32