Endesa S.a. · BME:ELE
Endesa — Corporate Update (June 2007)
31 slides from Endesa's corporate update, Jun 25, 2007
Slide 1: Renewables: Current situation and portfolio outlook
Renewables: Current situation and portfolio outlook Renewable Energies Division Valencia , 25 June 2007
Slide 2: Agenda
Agenda Context within which ENDESA is developing renewable energies ENDESA's vision, positioning, and action lines regarding renewable energies Project portfolio 1
Slide 3: EU energy policy targets make renewable energies the key to future action
EU energy policy targets make renewable energies the key to future action ... EU energy policy targets Renewable Energy 2020 targets 20% of primary energy will come from renewable energies (binding) To combat climate change Guideline proposals: Electricity: 34% of total electricity To promote consum
Slide 4: Renewables are already an established reality
.... since today they are already an established reality Significant cumulative growth Resources with future potential Gradual achievement of economies of scale Strong technological development Opportunity for industrial development and job creation 3
Slide 5: 2010 country by country EU renewable targets will be revised upwards for 2020
2010 country by country UE renewable targets will be revised upwards for 2020 EU targets for renewable energies (1) at 2010 % electricity consumption 78% 60% 50% 39% 34% 32% 31% 64% 29% 29% 25% 56% 50% 21% 22% 20% 13% 13% 27% 27% 9% 8% 10% 25% 18% 16% 7% 6% 8% 16% 14% 12% 10% 4% 6% 5% 14% 10% 7% 6%
Slide 6: Outlook for renewable targets in Spain
Outlook for renewable targets in Spain Spanish targets for renewable energies GWh 85,311 PFER (1999) at 2010 Includes PER (2005) a 2010 conventional hydro Maximum reasonable effort at 45,511 2020 39% 15,431 14,015 21,538 13,949 3,256 9,158 1,582 6,692 2,392 2,640 1,018 1,298 6,912 218 609 459 Solar
Slide 7: Agenda
Agenda Context within which ENDESA is developing renewable energies ENDESA's vision, positioning, and action lines regarding renewable energies Project portfolio 6
Slide 8: Conceptual framework of ENDESA's vision and positioning regarding renewable energies
Conceptual framework of ENDESA's vision and positioning regarding renewable energies Technologies ENDESA's Renewable Energies Vision Regulation Geographies 7
Slide 9: ENDESA's vision
ENDESA's vision Strengthening commitment to renewable energies ... ... as a profitable business ... Growth ... ... aligned with a greater effort to ensure sustainability, protect the environment, and combat climate change International expansion based on ... ... ENDESA's institutional presence, terr
Slide 10: Structural evolution of the electricity business
Structural evolution of the electricity business Regulatory framework Current Future Compensation for the Major upward revision of Economic binding RE targets .... higher direct generation incentives costs ... and their gradual technological maturity ... will require an appropriate adjustment to Inc
Slide 11: ENDESA's positioning and action lines by technology (1/4)
ENDESA's positioning and action lines by technology (1/4) Positioning Growth and self-development of ENDESA's high quality portfolio, in Wind terms of size and visibility power Solar Action lines To maximize capacity for self-development projects To accelerate and complete inorganic growth in key ge
Slide 12: ENDESA's positioning and action lines by technology (2/4)
ENDESA's positioning and action lines by technology (2/4) Positioning To promote integrated photovoltaic installations as a way to get closer Wind to the consumption points... power ... and co-leading the technological development of thermoelectric solar in preparation for its introduction in the ma
Slide 13: ENDESA's positioning and action lines by technology (3/4)
ENDESA's positioning and action lines by technology (3/4) Positioning Aims to lead development in biomass by leveraging co-firing Wind ... and biomass market development initiatives power Action lines Solar To accelerate the conversion of coal-fired plants to co-firing To ensure the transfer of best
Slide 14: ENDESA's positioning and action lines by technology (4/4)
ENDESA's positioning and action lines by technology (4/4) Positioning Wind power To make use of all existing opportunities to develop new mini-hydroelectric plants under the "Special Regime" Solar Action lines To make use of all existing opportunities to develop new mini-hydroelectric plants under t
Slide 15: Geographic positioning
Geographic positioning Geographic areas in which ENDESA currently operates Principal growth area in the short-/medium-term Spain and Focus on growth through self-development projects, maximizing today's high quality project portfolio involving all energy technologies Portugal Leveraging ENDESA's pre
Slide 16: Agenda
Agenda Context within which ENDESA is developing renewable energies ENDESA's vision, positioning, and action lines regarding renewable energies Project portfolio 15
Slide 17: ENDESA has a high quality portfolio of wind farms in Spain and Portugal
ENDESA has a high quality portfolio of wind farms in Spain and Portugal 1 Sizeable 2 Geographically diversified Spain 3 With a high level of maturity 4 With a conservative implementation rate Portugal 5 Good size and guaranteed implementation Europe 6 Acquired portfolio under development in France,
Slide 18: Size of ENDESA's portfolio in Spain compared to our main competitors
1 Size of ENDESA's portfolio in Spain compared to our main competitors Size of ENDESA's portfolio in Spain vs. main competitors (MW) 7,500 5,500 5,000 3,200 2,100 Company Company Company Company 1 2 3 4 Source: Public information from third companies 17
Slide 19: Appropriately diversified to ensure development according to each Region's maturity
2 Appropriately diversified to ensure development according to each Region's maturity ... Company 1 Company 3 CAT Rest Rest CAT 6% 5% 5% AND 7% ARA GAL 32% CYL Rest 6% 9% 16% ARA CYL 44% AND 12% 24% 9% AST CAT GAL 11% 6% 16% CLM CLM 23% 15% GAL 6% Company 2 Company 4 MUR GAL Rest CAT 2% CLM 5% 10% 9
Slide 20: Focused on the Regions with the best growth outlooks
2... and focused on the Regions with the best growth outlooks ... Wind power targets & progress to date, by Regions (MW) Castilla y Leon 2,120 580 4,000 6,700 Galicia 2,603 797 2,900 6,300 Castilla La Mancha 2,309 291 1,850 4,450 Andalucia 610 1,590 1,800 4,000 Aragon 1,539 861 1,600 4,000 Cataluna
Slide 21: Great wind power potential: ENDESA's portfolio by Regions
2 ... and with great wind power potential ENDESA's portfolio by Regions (MW) 433 875 575 796 1971 82 699 396 1181 Average wind speed (m/s) >7.5 494 6.5-7.5 4.5-5.5 5.5-6.5 ‹4.5 Source: Risoe National Lab 20
Slide 22: Wind power portfolio viability in Spain is based on three dimensions
3 ENDESA's wind power portfolio viability in Spain is based on three dimensions Technical viability The project is feasible from an engineering point of view Includes: civil work, turbines installation, physical access to evacuation point Economic viability The project is attractive from a financial
Slide 23: 7,500 MW with economic and technical viability and without environmental obstacles
3 7,500 MW with economic and technical viability and without environmental obstacles... Wind farm portfolio in Spain Grid connection rights 3,180 (42%) 1,580 (21%) 2,050 2,400 Governmental Environmental (27%) (32%) authorization Impact Statement Royal Decree 661/07 makes access and connection rights
Slide 24: 2009 target clearly achievable
4 ...and with 2009 target clearly achievable Portfolio implementation according to growth plans announced to the market (%) 74% 34% 30% 11% 15% Company 4 Company 3 Company 2 Company 1 Implementation target 2009 2010 2009 2009 2008 2006 to ... 23
Slide 25: In Portugal ENDESA's portfolio represents 38% of the government's target for 2010
5 In Portugal ENDESA's portfolio represents 38% of the government's target for 2010 In Portugal, the regulatory framework ensures the Total portfolio 1440 implementation of the entire portfolio, with guaranteed evacuation capacity anywhere in the Portfolio country corresponding 240 to Finerge ENDESA
Slide 26: Available wind power portfolio in France, Italy and Greece is nearly 1,000 MW
6 Available wind power portfolio to date in France, Italy and Greece is nearly 1,000 MW Purchase agreement with Gamesa for 242MW... ... and other developments and acquisitions... 10MW of ... will provide ENDESA with a operational wind guaranteed growth of 290MW power and 18MW between 2007 and 2009,.
Slide 27: Latin America: consolidate the portfolio anticipating regulation maturity
7 Latin America: aim to consolidate the portfolio anticipating the regulation maturity To help the different Governments to mature their respective regulatory frameworks Development/research of projects: -Brazil -Mexico -Chile -Peru - -Argentina Ensuring future developments by seeking out the most v
Slide 28: In other technologies, ENDESA also has a high quality portfolio
In other technologies, ENDESA also has a high quality portfolio ›100 MW for the installation of photovoltaic solar at facilities with their own land (power plants, landfills) and Solar high quality solar resources Agreement with Isofoton: (i) guaranteed supply of 100+250 MW solar panels; (ii) partic
Slide 29: Conclusions
Conclusions Extensive current political commitments on renewable energies translate into very demanding targets ... ... which will generate significant growth in renewable energies given the technological progress being made Endesa's vision for its renewable energy business is shaped by its commitme
Slide 30: Legal Information
Legal Information This document was made available to shareholders of Endesa, S.A.. In relation with the announced joint offer by ENEL SpA and Acciona, S.A., Endesa shareholders are urged to read the report of Endesa's board of directors when it is filed by the Company with the Comision Nacional del
Slide 31: Signatures
Renewables: Current situation and portfolio outlook Renewable Energies Division Valencia , 25 June 2007 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.