ENDESA : 9M 2019 Results Presentation

Endesa 9M 2019 Consolidated Results

November 05, 2019

Key highlights

EBITDA increased by +4% thanks to the good performance of liberalized

business

Decarbonization

Steady evolution in the Distribution business

Smart

networks

Flat fixed costs with an outstanding investment effort

Customer

value

Net Ordinary Income (1) +3%

Efficiency

through

digitalization

Accelerating the Energy Transition

1. Reported Net Income - Net Result on Disposals of Non-Financial Assets (over €10 M) - Net Results on Impairment of Non-Financial Assets (over €10 M)

9M 2019 Results- Madrid, 05 November 2019

2

Decarbonization: Discontinuity of the mainland coal

	Context		Impairment(1) of mainland coal fleet (€bn)
	• Adverse market conditions: Increase in CO2			1.4
	prices (MSR mechanism) and decrease in gas
Economic	prices triggered the exclusion of coal plants from		Dismantling provision
merit order		0.5
rationale	• No improvement expected in the future

• Coal plants will be managed separately from the rest of the generation fleet

Strategic	• Acceleration of the decarbonization process:	0.9
Replacement with a significant increase in
rationale
renewable capacity

Mitigating social impacts

No impact on 2019 dividend

A step forward to lead the Energy Transition

9M 2019 Results- Madrid, 05 November 2019 (1) Consisting on €1,356 M impact in D&A + €21 M of inventories deterioration (gross margin) + €21 M impairment of materials (fixed costs) in coal plants = €1,398 M

3

Accelerating renewable development

Net capex(1) (€bn)

Pipeline of renewable projects(3) (GW)

By type

10%

1.3

35%55%

Asset Management

Customers

Asset Development

By business

8%

	23%
1.3
45%
	21%
	3%
Mainland Gx + others	EGPE(2)
Sx + Endesa X	Non Mainland

Dx

~12.0

~7.4

Projects with awarded	~4.6
connection points

Up to 2030

Around 80% of the development capex devoted to renewable projects

(1) Does not include: Financial investments (€37 M in 9M 2019 and €30 M in 9M 2018),IFRS 16 effect (€121 M) nor business combinations made during the year

9M 2019 Results- Madrid, 05 November 2019	(2)	Figure does not include large hydro capex. Including large hydro capex: 47%	4
(3)	2020-2030 Pipeline

Market context in 9M 2019

Demand (1)		Electricity wholesale prices		Endesa output(4) (TWh)

Endesa distribution area(2)		Average pool prices Spain (€/MWh)			-16%
		(Not adjusted)
-0.7%		Industry	-0.4%		-10%
			55.5
			+1.3%	FY2018: 57.3 €/MWh
		Services	2.7			46.6
						6.9			+8%
								3.0
	0.4%	Residential	-3.2%
		51%	18.4			3.9	-43%
						58%
							20.2	+10%
				55.4
Spain(3)				49.9	9.6
-2.0%									9.0	-7%
					17.9			10.5	-41%
-3.0%				9M 2018	9M 2019	9M 2018			9M 2019
					Mainland		Non-mainland	Nuclear
						(thermal)		(regulated)
Not adjusted	Adjusted for weather and			Hydro		EGPE(5)
	working days

Challenging market context with demand decrease, poor hydraulicity and lower coal output

	(1)	Mainland.	(4)	Energy at power plant busbars.
9M 2019 Results- Madrid, 05 November 2019	(2)	Source: Endesa's own estimates	(5)	Includes 94 GWh in non-mainland in 9M 2019 (40 MW) vs 21 GWh in 9M 2018 (40 MW)	5
(3)	Source: REE