Endesa S.a. · BME:ELE
Endesa — Q1 2010 Earnings Presentation
34 slides from Endesa's earnings presentation, May 11, 2010
Slide 1: Endesa 2010 1Q Results
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Slide 2: The quarter in a snapshot
consolidated results 1Q 2010 The quarter in a snapshot Spain&Portugal&Others Latin America Total Endesa 44.712 28.063 31.965 GWh 1Q 2010 16.649 17.306 14.659 Hydro + 17,573 Hydro+ Nuclear 9,751 Hydro 7,822 Nuclear Production Customer Sales Production Customer Sales Production Customer Sales (% over
Slide 3: Growth at operating and net income level
consolidated results 1Q 2010 Growth at operating and net income level €M 1Q 2010 1Q 2009 Change Revenues 7,693 6,034 +27% Gross margin 2,752 2,596 +6% EBITDA 1,879 1,729 +9% Spain&Portugal&Others(1) 1,174 1,001 +17% Endesa Latin America 705 728 -3% EBIT 1,403 1,223 +15% Net finance expenses(2) 320 2
Slide 4: Demand growth with lower electricity prices
consolidated results 1Q 2010 Demand growth with lower electricity prices Demand by country: 1Q 2010 vs. 1Q 2009 10.2% 6.9% 6.6% Latin America: Spain: first 5.1% strong growth monthly 2.8% despite growth after Chile(2) Chilean 16 months Spain(1) Brazil Colombia Peru Argentina earthquake -2.8% +8.2%(3
Slide 5: Effective hedge of liberalized margins through consistent sales strategy
consolidated results 1Q 2010 Effective hedge of liberalized margins through consistent sales strategy Spain&Portugal (% estimated Latin America (% estimated output mainland output already committed) already committed) 100% 70-75% 65-70% 40-45% Apr-Dec 2011 2010 Apr-Dec 2011 2010 32% of the generat
Slide 6: Progress towards efficiency targets
consolidated results 1Q 2010 Progress towards efficiency targets €M Achieved synergies Breakdown of synergies in 1Q 2010 +24% 613 €124 M (+33%) 494 IT/systems Distribution & Others 35% 41% +33% Achieved in Achieved in 1Q 2009 93 124 1Q 2010 24% FY 2009 FY 2010 synergies synergies target Generation &
Slide 7: Main regulatory issues
consolidated results 1Q 2010 Main regulatory issues Spain Tariff deficit securitization Domestic coal Remuneration for back up technologies Renewables Distribution Latin America Chile: 2% increase in "nudo price" from May onwards Brazil: positive annual tariff review in Coelce and Ampl
Slide 8: Recent corporate transactions
consolidated results 1Q 2010 Recent corporate transactions Renewables agreement with Enel Green Power completed Transaction capital gains in 1Q 2010 (€M) Access to financial resources 1,043 Economies of scale and 881 Mark to market 40% stake in portfolio management effect "New ECyR" 730 Best p
Slide 9: Prompt response to natural disasters
consolidated results 1Q 2010 Prompt response to natural disasters • Quick and consistent response from our recovery plan: 66% of Earthquake in Chile our customers had energy restored in less than 12 hours (February 27th) • After 30 hours, 80% and 100% after 10 days • €7.2 M donation to contribute in
Slide 10: A sound financial position
consolidated results 1Q 2010 A sound financial position €M Net debt evolution in 1Q 2010 18,544 18,506 Enersis 4,191 1,097 411 291 248 689 4,397 7,019 Spain& Portugal 14,353 14,109 and rest of 11,487 group Net debt Cash CAPEX Extraordinaries(1) Chg. to working Dividends Net debt Debt net of 31/12/09
Slide 11: Spain&Portugal&Others
spain&portugal&others2010 1Q R E S U L T S
Slide 12: Spain&Portugal&Others Highlights
spain&portugal&others 1Q 2010 Highlights After 16 months of decline, demand growth during the first 4 months of the year Energy management optimization within persisting low wholesale prices (-32% to 32.5€/MWh): ● -17%(1) electricity generation to 17 TWh ● +241% energy purchases to 10 TWh(2) L
Slide 13: Double digit growth at operating and net income level
spain&portugal&others 1Q 2010 Double digit growth at operating and net income level(1) €M 1Q 2010 1Q 2009 Change Revenues 5,609 3,938 +42% Gross margin 1,760 1,606 +10% EBITDA 1,174 1,001 +17% EBIT 867 631 +37% Net finance expenses(2) 213 175 +22% Net attributable income 1,364 380 +259% Net attribut
Slide 14: Gross margin growth supported by liberalized businesses
spain&portugal&others 1Q 2010 Gross margin growth supported by liberalized businesses €M +32% 0% -51% 1,760 1,606 +10% 1Q 2009 Liberalized business Regulated business Renewables 1Q 2010 Higher activity in supply due to Distribution liberalization process since July 2009 Mining Resilient sale prices
Slide 15: Resilient liberalized revenues despite decline in wholesale prices
spain&portugal&others 1Q 2010 Resilient liberalized revenues despite decline in wholesale prices Unit price evolution Solid position in supply to (€/MWh) final customers Leader in supply: 20 TWh(2) 62 sales to liberalized final customers 55 Avg. electricity 37% lower sales to wholesale 48 revenu
Slide 16: Competitive energy costs
spain&portugal&others 1Q 2010 Competitive energy costs Ordinary regime output Fuel costs (€/MWh) (13 TWh, -17%) -18% Oil-gas (-79%) 0% 20 Coal (-57%) 18% Flexible thermal 16 output CCGTs (+19%) 7% 1Q 2009 1Q 2010 Nuclear (-5%) Energy purchase costs (€/MWh) 50% -31% 75% free of CO2 44 emissions 30 Hy
Slide 17: Latin America
latin america2010 1Q R E S U L T S
Slide 18: Endesa Latin America Highlights
endesa latin america 1Q 2010 Highlights Sharp growth in distribution volumes (+5.2%) despite Chilean earthquake Drop in generation volumes (-8.9%) mainly due to lower hydro output in Colombia (-43%) Lower generation margin due to lower hydro output (-9%) and lower prices in Chile (average "nud
Slide 19: Stable results despite earthquake in Chile
endesa latin america 1Q 2010 Stable results despite earthquake in Chile €M 1Q 2010 1Q 2009 Change Revenues 2,084 2,096 -1% Gross margin 992 990 +0% EBITDA 705 728 -3% EBIT 536 592 -9% Net finance expenses(1) 107 74 +45% Net income 355 345 +3% Net attributable income(2) 171 129 +33% €113 M of attri
Slide 20: Lower electricity output and increase in distribution sales
endesa latin america 1Q 2010 Lower electricity output and increase in distribution sales Generation Output Distribution Sales GWh -8.9% GWh +5.2% 16,096 16,649 15,824 14,659 4,482 4,313 +6% Argentina 4,075 4,121 -8% 613 951 +55% Brazil 4,774 +10% 4,346 5,405 5,190 -4% Chile 3,046 -1% 3,078 3,240 Col
Slide 21: Generation EBITDA decrease due to lower activity and margins
endesa latin america 1Q 2010 Generation EBITDA decrease due to lower activity and lower margins EBITDA Generation €M Lower unit margin 459 -18% performance in Chile (-25%) Argentina 39 due to lower output affected 27 376 Brazil by the earthquake and lower 36 -8% prices 51 +89% Chile 249 Lower un
Slide 22: Strong growth in distribution EBITDA
endesa latin america 1Q 2010 Strong growth in distribution EBITDA EBITDA Distribution €M Brazil: sharp increase in +29% demand in Coelce (+16%) and 337 15 -25% Ampla (+8%) 262 Chile: lower demand and Argentina 20 higher fixed costs due to the 175 +79% earthquake Brazil 98 Higher demand and pos
Slide 23: Conclusions
conclusions2010 1Q R E S U L T S
Slide 24: Consistently delivering excellent results
conclusions 1Q 2010 Consistently delivering excellent results Demand indicators improving Solid results continue growing thanks to: - Sales and energy management strategy - Efficiency plan on track - Balanced business portfolio - Active portfolio optimization Strong financial position Key re
Slide 25: Appendices
appendices2010 1Q R E S U L T S
Slide 26: Installed capacity and output
appendices 1Q 2010 Installed capacity and output(1) Spain& Endesa Latin MW at 31/03/10 Total Portugal&Others America Total 22,988 15,853 38,842 Hydro 4,729 8,645 13,374 Nuclear 3,666 - 3,666 Installed Coal 5,804 538 6,342 capacity Natural gas 2,197 3,966 6,163 Oil-gas 6,564 2,618 9,182 CHP/Renewable
Slide 27: Endesa (excl. Enersis): financial debt maturity calendar
appendices 1Q 2010 Endesa (excl. Enersis): financial debt maturity calendar Gross balance of maturities outstanding at 31 March 2010: €14,192 M(1) Bonds Bank debt and others ECPs and domestic commercial paper (2) 3,887 3,145 Endesa's liquidity 2,632 2,595 397 excl. Enersis 1,885 1,933 3,490 2,296 co
Slide 28: Enersis: financial debt maturity calendar
appendices 1Q 2010 Enersis: financial debt maturity calendar Gross balance of maturities outstanding at 31 March 2010: €5,725M(1) 2,932 Bonds Bank debt and others 334 Enersis has sufficient liquidity to cover 27 months 2,598 514 864 of debt maturities 742 673 365 515 520 169 149 349 222 504 Apr-dec
Slide 29: Financial policy and debt structure
appendices 1Q 2010 Financial policy and debt structure Structure of Endesa's debt ex-Enersis Enersis debt structure €M €M 14,109 14,109 4,397 4,397 US$ 1% Other 43% Floating 53% Floating 52% Chilean Peso Hedged 11% 23% (1) Euro 99% US$ 34% Fixed 36% Fixed 48% By interest rate By currency By interest
Slide 30: Highlights by country
appendices 1Q 2010 Highlights by country EBITDA 1Q 2010 (vs. 1Q 2009) Lower average prices due to lower spot and nudo prices Lower electricity demand affected by 27th February earthquake (-8.3% in Gen: €167 M (-33%) March) Bocamina I coal plant, affected by earthquake, will not be operative ti
Slide 31: Highlights by country
appendices 1Q 2010 Highlights by country EBITDA 1Q 2010 (vs. 1Q 2009) Gen: €75 M (-21%) Endesa 1Q10 hydro production 43% lower than previous year Less efficient production mix due to higher thermal production Dist: €76 M (+15%) Significant increase in physical sales Dx business Colombia Total
Slide 32: Major direct holdings in Latin America other than Enersis
appendices 1Q 2010 Endesa has major direct holdings in companies other than Enersis in Latin America €M % direct Proportionate stake 1Q 2010 EBITDA 60.6% Codensa: 26.7% 19 Emgesa: 21.6% 16 Direct holdings Endesa Brasil: 28.5% 65 Edesur: 6.2% 1 60% DockSud: 40% 3 Edelnor: 18% 5 Piura: 48% 3 Generatio
Slide 33: Disclaimer
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
Slide 34: Endesa 2010 1Q Results
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