Acciona Sa · BME:ANA
Acciona Sa — Merger or Acquisition (December 2007)
14 slides from Acciona Sa's merger presentation, Dec 12, 2007
Slide 1: The Endesa acquisition: a story of value creation
The Endesa acquisition: a story of value creation London December 12, 2007 1
Slide 2: Agenda
Agenda Transaction rationale Synergies Conclusions 2
Slide 3: Transaction rationale
Transaction rationale Strong contribution to operating and financial growth Business diversification and wider global footprint improves risks/return profile Creation of a global leader in renewable energies Strong potential for synergies, savings and cross-transfer of best practices EPS accretion f
Slide 4: Endesa platform 1/2
Endesa platform 1/2 Opportunity to leverage on Endesa’s leading positions in complementary markets to Acciona and Enel Very promising prospects based on sound fundamentals: 9 solid economic growth 9 strong electricity demand growth (>3%) 9 strong presence in the mid stream gas activities 9 limited c
Slide 5: Endesa platform 2/2
Endesa platform 2/2 Solid operating and financial performance from a diversified portfolio Efficiencies ahead of current Business Plan Iberia: 9 Leadership in liberalized market 9 Competitive fuel cost 9 Growth in line with current Business Plan Latam 9 Strong operating growth based on sound demand
Slide 6: Endesa: Strong cash flow generation thanks to diversification
Endesa: Strong cash flow generation thanks to diversification A balanced capacity mix… …to serve 21.6 million customers 37.6 GW Renew. 4% Argentina Nuclear 10% 9% Peru 5% Hydro Colombia 37% Fuel-oil 10% Spain 19% 46% Brasil CCGT 23% 14% Coal Chile 17% 6% Note: Excluding assets to be divested. Data a
Slide 7: Endesa: Leading position in high growth markets
Endesa: Leading position in high growth markets 48% Output Sales 43% 29% 31% 28% 24% 21% 18% 15% 17% 6% 1% Spain Chile Colombia Peru Argentina Brazil Market position #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 Demand Growth 2006-12 3.5% 3.5% 6.3% 6.3% 4.5% 4.5% 6.4% 6.4% 5.1% 5.1% 5.0% 5.0% (Cagr) 2006 Figures 7
Slide 8: Agenda
Agenda Transaction rationale Synergies Conclusions 8
Slide 9: Synergies by category
Synergies by category 1010 330 €mn 330 680 4% 4% 698 Savings 1 Savings 1 787 Opex & Margins 457 475 Capex 223 223 223 Total Synergies Efficiencies Additional savings at already synergies/ included efficiencies regime in the 2012 strategic plan further possible upside under investigation (1) Over 200
Slide 10: Annual savings of €mn 680 by 2012
Annual savings of €mn 680 by 2012 6% 1 4% % cost base 6%1 4% 2006 3% 3% 94 680 9 LatAm 216 85 101 37 3% 3% 179 123 NEEP 2.5% 2.5% 16 12% 525 12% 107 97 16 150 81 Corporate & 22 other 74 54 54 Corporate & Procurement Generation Distribution Energy Total other mgmt. (1) It only refers to fuel procurem
Slide 11: Synergy levers
Synergy levers Corporate, general services, IT, R&D 84 €mn EBITDA Generation Synergies: 123 €mn 457 M€ Distribution 156 €mn Year 1: 29% Year 3: 81% Year 5: 100% Fuel, Energy management 94 €mn IT, R&D 66 €mn CAPEX Synergies: 223 M€ Procurements 97 €mn Year 3: 64% Year 5: 100% Distribution 60 €mn 11
Slide 12: Potential upside under analysis
Potential upside under analysis 1 Potential upsides not in current synergies Centralization of services procurement (vg. Maintenance) Corporate, IT, R&D: Further integration of operations and applications Procurement Further potential from enlargement of procurement base Generation O&M optimization
Slide 13: Agenda
Agenda Transaction rationale Synergies Conclusions 13
Slide 14: Conclusions
Conclusions Synergy Plan approved Detailed implementation of Synergy Plan initiated Potential upside to Synergy Plan under analysis Asset disposal process on execution phase Renewable energies combination with Acciona Energía initiated New Endesa Business Plan by 1Q 2008 Endesa’s current financial c