Enel SpA · MIL:ENEL
Enel SpA — H1 2008 Earnings Presentation
51 slides from Enel SpA's earnings presentation, Aug 1, 2008
Slide 1: 2008 Interim Results
Enel SpA Investor Relations 2008 Interim Results August 1st, 2008
Slide 2: Agenda
Enel SpA Investor Relations Agenda • 2008 Interim Results L. Ferraris • Questions & Answers • Annexes 1
Slide 3: Financial highlights: consolidated
Enel SpA 1H2008 results Investor Relations Financial highlights: consolidated €mn 1H07 1H08 % Revenues 18,857 29,316 55.5 EBITDA 4,462 7,405 66.0 EBIT 3,134 5,285 68.6 Group net income 1,982 2,851 43.8 Net debt 55,7911,2 51,2912 -8.1 1. Figures as of 12.31.2007 2 2. Not including net debt of discont
Slide 4: From EBIT to net income
Enel SpA 1H2008 results Investor Relations From EBIT to net income €mn 1H07 1H08 % EBIT 3,134 5,285 68.6 Net financial charges (87) 1,446 Interest charges 358 1,543 - Fair value of Acciona put option - (113) - Other (445) 16 - Net income from equity investments using equity method 1 27 - EBT 3,222 3
Slide 5: Group EBITDA evolution (€mn)
Enel SpA 1H2008 results Investor Relations Group EBITDA evolution (€mn) +2,943 +2,251 +136 +38 7,405 69 580 2,436 +226 +176 4,462 +116 31 444 291 185 115 S&H International 2,008 1,782 Ib&Latam Market I&N G&EM 1,905 2,021 1H07 G&EM I&N Market Ib&Latam Intern. S&H1 1H08 1. Including the Engineering an
Slide 6: Group EBITDA by business area
Enel SpA 1H2008 results Investor Relations Group EBITDA by business area(€mn) 4,462 €mn 7,405 €mn 42% 41% 58% 59% 1H07 1H08 WELL BALANCED PORTFOLIO OF ACTIVITIES Generation & sales Networks 5
Slide 7: Forward electricity sales: focus on Italy
Enel SpA 1H2008 results Investor Relations Forward electricity sales: focus on Italy Level of total production hedged (%) ~100 % 100 % 100 % 20% 60% ~80% ~40% Non Hedged Hedged 2008 2009 2010 Latest sale campaign at a baseload price of 106.5 €/MWh 6
Slide 8: EBITDA evolution: domestic G&EM division
Enel SpA 1H2008 results Investor Relations EBITDA evolution: domestic G&EM division (€mn) +116 +165 -46 +37 -40 2,021 1,905 1H07 Generation Trading Fair value Other 1H08 margin margin 7
Slide 9: Domestic G&EM division: fuel cost evolution
Enel SpA 1H2008 results Investor Relations Domestic G&EM division: fuel cost evolution +24% 55.1 44.5 Average fuel cost (€/MWh) 1H07 1H08 +29% +19% +51% 360.7 29.7 95.0 279.3 25.0 63.1 1H07 1H08 1H07 1H08 1H07 1H08 Oil (€/ton) Gas (c€/mc)1 Coal (€/ton)1 1. Fuel costs do not include the impact of hed
Slide 10: EBITDA evolution: domestic market division
Enel SpA 1H2008 results Investor Relations EBITDA evolution: domestic market division (€mn) +176 +96 291 +80 115 1H07 Regulated Free 1H08 market market 9
Slide 11: EBITDA evolution: domestic I&N division
Enel SpA 1H2008 results Investor Relations EBITDA evolution: domestic I&N division (€mn) +226 +114 -17 2,008 +129 1,782 1.911 2.008 1.782 Non recurring 1H07 items Gas 1H08 Electricity 10
Slide 12: EBITDA evolution: international division
Enel SpA 1H2008 results Investor Relations EBITDA evolution: international division (€mn) +136 580 +5 +6 +41 +3 7 +81 27 444 28 4 95 22 90 423 342 Centrel SEE North America Russia France & Belgium -14 1H07 Centrel SEE North France Russia 1H08 America & Belgium 11
Slide 13: Focus on Russia
Enel SpA 1H2008 results Investor Relations Focus on Russia Unit price 1 (€/MWh) +18.7% 15.9 13.4 1H07 1H08 Coal spark spread (€/MWh) Gas spark spread (€/MWh) +89.5% +45.4% 7.2 3.8 3.2 2.2 1H07 1H08 1H07 1H08 1. Unit price excluding capacity payment 12
Slide 14: EBITDA evolution: Iberia & Latam division
Enel SpA 1H2008 results Investor Relations EBITDA evolution: Iberia & Latam division (€mn) +2,251 +2,366 +8 -143 (1) +20 2,436 185 1H07 Endesa Eufer Viesgo Enel 1H08 Latam 1. Including 109 €mn of capital loss for Viesgo Group disposal 13
Slide 15: EBITDA evolution: focus on Endesa
Enel SpA 1H2008 results Investor Relations EBITDA evolution: focus on Endesa1 +263 118 3,487 154 3,224 1H07 Iberia Latam 1H08 1. 100% Endesa Results under Spanish GAAP method. 14
Slide 16: EBITDA evolution: services & holding
Enel SpA 1H2008 results Investor Relations EBITDA evolution: services & holding1 (€mn) +37 +6 64 +31 27 1H07 Import Other 1H08 1. Including intercompany adjustments 15
Slide 17: Net debt evolution (€mn)
Enel SpA 1H2008 results Investor Relations Net debt evolution (€mn) +6,014 December Cash-flow Capex Extra- Net Dividends June 31, 2007 from ordinary financial 30, 2008 operations activities charges -51.291 -55.791 Discontinued Discontinued operations -211 operations -1.725 -57,516 +5,630 -3,207(1) +
Slide 18: Focus on renewables
Enel SpA 1H2008 results Investor Relations Focus on renewables1 Capacity (MW) Production (GWh) +15.72% Other Wind Geothermal +14.79% Mini-hydro 3,269 6,999 2,825 6,097 157 51 678 151 49 2.681 678 2.628 1002 1.037 622 EBITDA evolution (€mn) 671 1476 1538 2.647 3.124 +1.15% 1H07 1H08 1H07 1H08 +39 441
Slide 19: Agenda
Enel SpA Investor Relations Agenda • Opening remarks • 2008 Interim Results • Questions & Answers • Annexes 18
Slide 20: Agenda
Enel SpA Investor Relations Agenda • Opening remarks • 2008 Interim Results • Questions & Answers • Annexes 19
Slide 21: Operational data
Enel SpA Operational annexes Investor Relations Operational data North America 0.6 GW 1.0 TWh Russia 8.2 GW 2.8 TWh 8.7 TWh Central America 0.5 GW 1.2 TWh Colombia 1.9 GW 4.0 TWh Brazil France Slovakia 2.4 TWh 0.8 GW 0.5TWh 5.6 GW 1.3 TWh Romania 11.6 TWh Peru 4.7 TWh 2.8TWh 1.1 GW Iberia1 2.9 TWh 1
Slide 22: Operational Data – Generation Mix Italy
Enel SpA Operational annexes Investor Relations Operational Data – Generation Mix Italy 46,438 (TWh) 2929 40,300 (MW) 1005 4948 14,758 13,982 3,519 12,513 14,419 12,719 5,946 Capacity (MW) Production (GWh) Other renewables Coal Oil & gas Hydro CCGT 21
Slide 23: Operational Data – Generation Mix Iberia & Latam
Enel SpA Operational annexes Investor Relations Operational Data – Generation Mix Iberia & Latam Iberia - Endesa 19,872 29,3502 Latam - Endesa 1,025 898 9 8,933 3,858 16,0391 10,223 2,636 12 987 3,009 360 10,452 3,892 1,447 2,633 9,472 5,788 3,724 2,441 4,656 2,362 4,275 2,616 Capacity (MW) Producti
Slide 24: Operational Data – Generation Mix Centrel – South Eastern Europe
Enel SpA Operational annexes Investor Relations Operational Data – Generation Mix Centrel – South Eastern Europe Slovakia 11,641 Greece 1,510 105 106 2,311 5,635 98 105 1,254 7,820 2,329 2,052 7 1 Capacity (MW) Production (GWh) Capacity (MW) Production (GWh) Bulgaria 1,974 1,974 592 592 Capacity (MW
Slide 25: Operational Data – Generation Mix Russia – North America – France
Enel SpA Operational annexes Investor Relations Operational Data – Generation Mix Russia – North America – France Russia North America 1,031 8,220 3,606 445 573 2,783 259 586 4,614 1,560 314 1,223 Capacity (MW) Production (GWh) Capacity (MW) Production (GWh) France 8 3 Capacity (MW) Production (GWh)
Slide 26: Operational Data – Electricity and gas distribution
Enel SpA Operational annexes Investor Relations Operational Data – Electricity and gas distribution Electricity (TWh) Gas (bcm) 2.1% 17.2% Volumes Distributed: 32.3% Breakdown by country 65.6% 82.8% Electricity (TWh) Gas (bcm) 2.1% 6.4% 0.4% Sales 27.4% Breakdown by country 40.4% 50.7% 72.6% Russia
Slide 27: Italian market overview: electricity and gas consumption
Enel SpA Operational annexes Investor Relations Italian market overview: electricity1 and gas consumption2 Electricity consumption (TWh) Gas consumption (bcm) -0.0% +7.8% 168.7 168.6 25.3 20.5 45.8 42.5 1 1 17.1 105.4 16.2 101.2 10.4 10.3 46 46.4 15 17.3 -3.8 -3.7 1H07 1H08 1H07 1H08 Import Other Ne
Slide 28: Italian market overview: electricity sales
Enel SpA Operational annexes Investor Relations Italian market overview: electricity sales1 Regulated market (TWh) Free market2 (TWh) Enel’s free customers3 (thousand) +11.5% -18.3% 1,858.0 96.6 +40.2% 107.7 25.8 61.3 18.4 -28.6% 50.1 +4.7% 668.0 51.5 78.2 81.9 43.1 -16.3% 9.8 7 1H07 1H08 1H07 1H08
Slide 29: Enel's gas sales
Enel SpA Operational annexes Investor Relations Enel’s gas sales Volumes sold (bcm) Customers (thousand) +87.5% +29.5% 3,084 4.5 2,381 498 1.2 2.4 2381 2586 3.3 2.4 1H07 1H08 1H07 1H08 Italy International 28
Slide 30: 1H2008 Group installed capacity: breakdown by source and location
Enel SpA Operational annexes Investor Relations 1H2008 Group installed capacity: breakdown by source and location MW Hydro RES Nuclear Coal CCGT Oil & gas TOTAL - other ST/OCGT Italy 14,419 1,005 - 4,948 5,946 13,982 40,300 Iberia 4,422 1,334 2,441 4,686 3,1342 2,633 18,650 Centrel 2,329 - 2,052 1,2
Slide 31: 1H2008 Group net production: breakdown by source and location
Enel SpA Operational annexes Investor Relations 1H2008 Group net production: breakdown by source and location TWh Hydro RES Nuclear Coal CCGT Oil & gas TOTAL - other ST/OCGT Italy 12.5 2.9 - 14.8 12.7 3.5 46.4 Iberia 3.5 1.4 9.5 9.6 4.41 2.6 31.0 Centrel 2.3 - 7.8 1.5 - - 11.6 SEE - 0.1 - 2.0 - - 2.
Slide 32: Production mix
Enel SpA Operational annexes Investor Relations Production mix +0,9% 46.0 (TWh) 46.4 (TWh) 15.0% 7.6% Group production mix 27.4% 24.2% Domestic 31.8% +82.6% Domestic 30.6% 6.2% 6.3% 63.8 (TWh) 116.5 (TWh) 24.0% 26.9% 10.8% 9.7% 17.4% 18.7% 1H07 1H08 30.0% 26.0% +293.8% 11.8% 14.8% 5.4% 4.2% 17.8 (TW
Slide 33: CO2 emissions vs. allowances
Enel SpA Operational annexes Investor Relations CO2 emissions vs. allowances Domestic generation CO2 emissions (mton) Allowances Deficit 1H 21,1 1,2 22,2 2007 1H -1,0 22,2 21,3 2008 32
Slide 34: Enel's electricity and gas distribution
Enel SpA Operational annexes Investor Relations Enel’s electricity and gas distribution Volumes distributed in Italy1 (TWh) Volumes distributed abroad (TWh) -0.1% +985.5% 128.5 67.3 128.6 6.2 1H07 1H08 1H07 1H08 Volumes distributed (bcm) End users (thousand) +11.2% +38.9% 2,040 2,268 1.8 2.5 0.4 1.8
Slide 35: EBIT by business area (€mn)
Enel SpA Financial annexes Investor Relations EBIT by business area (€mn) +68.6% 5,285 S&H Iberia&Latam 22 Mkt Intl 1637 I&N 3,134 149 GEM 355 127 246 1,539 1,362 1,441 1,583 -23 -19 1H07 1H08 34
Slide 36: Balance sheet
Enel SpA Financial annexes Investor Relations Balance sheet €mn 20071 1H08 % Net financial debt 55,791 51,291 -8.07 Shareholders’ equity 23,789 25,089 5.46 Net capital employed 79,580 76,380 -4.02 1. Figures as of 31.12.2007 35
Slide 37: Financial Debt evolution
Enel SpA Financial annexes Investor Relations Financial Debt evolution Millions of Euro 12.31.2005 12.31.2006 12.31.2007 06.30.2008 - Bank Loans - maturities > 12 months 2,782 3,677 28,343 28,478 - Bonds - maturities > 12 months 8,043 8,375 22,365 20,416 - Other loans - maturities > 12 months 142 14
Slide 38: Debt evolution
Enel SpA Financial annexes Investor Relations Debt evolution Average cost of debt Average residual maturity 6.2%5.9% 5.5% 7:7 7:7 5.2% 5.3% 4.7% 4.6% 5.1% 6:4 5:10 4.4%4.4%4.3% 5:4 5:2 5:3 4:1 4:9 4:4 3:11 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 IH 1998 1999 2000 2001 2002 2003 2004 2005 2
Slide 39: Debt structure
Enel SpA Financial annexes Investor Relations Debt structure • Average debt maturity: 5 years and 3 months • Average cost of debt: 5.3%3 • (Fixed+hedged)/Total long-term debt: 47% • (Fixed+hedged)/Total net debt: 50% • Rating: S&P’s = A-/A-2 Outlook negative; Moody’s = A2/P-1 Outlook negative €mn 20
Slide 40: Long-term debt maturity profile as of June 30, 2008
Enel SpA Financial annexes Investor Relations Long-term debt maturity profile as of June 30, 2008 8,081 Floating rate Fixed rate 14,351 10,684 12,061 1,127 3,232 981 1,106 140 356 1,404 1,118 <12months 2° half 2010 2011 2012 After 2009 2012 39
Slide 41: Financial debt as of June 30, 2008
Enel SpA Financial annexes Investor Relations Financial debt as of June 30, 2008 Enel Enel Finance Enel Enel Enel SpA Endesa Investment Slovenske Other Total International Produzione Distribuzione Holding BV Bond 14,726 6,075 2,324 572 194 - - 175 24,066 Bank Loans 13,583 3,909 7,711 - 110 1,020 1,7
Slide 42: Domestic Market
Enel SpA Financial annexes Investor Relations Domestic Market €mn 1H07 1H08 % Revenues 10,620 11,139 4.9 EBITDA 115 291 153.0 EBIT (23) 149 - Capex 17 22 29.4 Headcount 4,7721 4,585 -3.9 1. As of December 31, 2007 41
Slide 43: Domestic Generation & Energy Management
Enel SpA Financial annexes Investor Relations Domestic Generation & Energy Management €mn 1H07 1H08 % Revenues 7,710 10,865 40.9 EBITDA 1,905 2,021 6.1 EBIT 1,441 1,583 9.9 Capex 489 527 7.8 Headcount 8,4321 8,206 -2.7 1. As of December 31, 2007 42
Slide 44: Domestic Infrastructure & Network
Enel SpA Financial annexes Investor Relations Domestic Infrastructure & Network €mn 1H07 1H08 % Revenues 2,741 3,302 20.5 Power 2,572 3,148 22.4 Gas 169 154 -8.9 EBITDA 1,782 2,008 12.7 Power 1,683 1,926 14.4 Gas 99 82 -17.7 EBIT 1,362 1,539 13 Power 1,308 1,504 15 Gas 54 35 -35.2 Capex 665 672 -1.1
Slide 45: Iberia & Latam
Enel SpA Financial annexes Investor Relations Iberia & Latam €mn 1H07 1H08 % Revenues 614 8,361 - EBITDA 185 2,436 - EBIT 127 1,637 - Capex 170 949 - Headcount 20,2261 18,254 -9.7 1. Figure as of December 31, 2007 44
Slide 46: International activities
Enel SpA Financial annexes Investor Relations International activities €mn 1H07 1H08 % Revenues 1,442 2,020 40.1 EBITDA 444 580 30.6 EBIT 246 355 44.3 Capex 143 390 172.7 Headcount 11,5281 17,446 51.3 1. Figure as of December 31, 2007 45
Slide 47: Services & Holding
Enel SpA Financial annexes Investor Relations Services & Holding €mn 1H07 1H08 % Revenues 1,376 1,431 3.9 Holding 449 337 -24.9 Services & other 546 554 1.5 Engineering & Innovation 381 540 41.7 EBITDA1 31 69 122.6 Holding (65) (21) - Services & other 62 81 30.65 Engineering & Innovation 4 5 25 EBIT
Slide 48: Services & Holding - Continued
Enel SpA Financial annexes Investor Relations Services & Holding - Continued €mn 1H07 1H08 % Capex 36 33 -8.31 Holding 11 5 -54.5 Services & other 25 28 12.0 Headcount 5,8321 6,173 +5.8 Holding 728 714 -1.9 Services & other 5,104 5,459 7.0 Engeneering & Innovation 881 952 8.06 1. Figure as of Decemb
Slide 49: Capex by business area (€mn)
Enel SpA Financial annexes Investor Relations Capex by business area (€mn) +70.6% 2,593 -8.3% S&H 33 22 Market +29.4% Iberia & Latam International I&N 949 +458.2% G&EM 1,520 17 36 170 390 +172.7% 143 672 +1,0% 665 489 527 +7.8% 2006 2007 48
Slide 50: Disclaimer
Enel SpA Investor Relations Disclaimer THESE SLIDES HAVE BEEN PREPARED BY THE COMPANY SOLELY FOR THE USE DURING THE CONFERENCE CALL OF ENEL 1H2008 RESULTS. THE INFORMATION CONTAINED HEREIN HAS NOT BEEN INDEPENDENTLY VERIFIED. NONE OF THE COMPANY OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER
Slide 51: Contact us
Enel SpA Investor Relations Contact us Investor Relations Team (investor.relations@enel.it) • Luca Torchia (Head of IR) +39 06 83053437 • Pedro Cañamero +39 06 83055292 • Elisabetta Ghezzi +39 06 83052708 • Donatella Izzo +39 06 83057449 • Federica Todaro +39 06 83059502 • Angela Tretola +39 06 8305