Capital Markets

November 25th, 2020

Ready for the next decade

1

Agenda

José Bogas

CEO

Luca Passa

CFO

Endesa @2030

Endesa 2021-23

Our positioning

The next 10 years

Operative Targets Financial Targets

José Bogas

Closing remarks

2

Our positioning

José Bogas

CEO

A portfolio of strategic assets(1)

1st player in generation

1st network operator(3)

Largest retail customer base

56.2 TWh output (2) ~83% CO2 free mainland

105 TWh distributed (4)

  1. €bn RAB
  1. mn end users

~91 TWh power sales (2)

12.1 mn customers (5)

First integrated player leading energy transition in Iberia

(1)

2020E

(4)

In supplier busbars

(2)

Energy at busbars

(5)

Electricity & gas clients

4

(3)

By distributed energy

Delivery on 2020-22 Strategic Plan

Operating targets

Decarbonization

Electrification

Infrastructures & Networks

2014

RES (1)

32%

CO2 (%) (2)~50%

Coal (3) (TWh)

22.2

Target 2022

Target 2022

2020E

Target 2022

2014

2020E

2014

2020E

Old plan

Old plan

Old plan

✔

✔

Power Integrated

Smart-meters

~45%

~60%

19

~32

~30

5

>12

>12

(mn)

Margin (€/MWh)

~83%

✔

~85%

Free Power

4.5

5.7

6.6

Distributed

109

105

121

Clients (mn)

energy (TWh) (4)

1.6

0

Endesa X (k#

-

8.0

36.0

Unitary Opex

59

43

39

Charging points)

(€/end user)

  • Ahead of 2022 target old plan

Sound progress on all strategic pillars

(1)

% of mainland capacity

(3)

Mainland

5

(2)

% mainland CO2 emission free generation

(4)

In supplier busbars

Delivery on 2020-22 Strategic Plan

Financial targets

TSR, %

2014

2020E

CAGR 2014-

20E

163(3)

80

13.5€

(2)

-2

ENDESA

Net CAPEX (€bn)

0.8

EBITDA (€bn)

3.1

Net ordinary income (€bn)

0.9

Gross DPS (€/sh)

0.76

1.511%

3.9(1) ✔4%

2.0 ✔14%

~1.9 ✔16%

ESG Investors(4) 14.2%

✔

Ahead of 2020 target old plan

Repositioning through a sustainable strategy led to improved economic results

  1. Like for like EBITDA excluding +515 €mn of provision reversal from the commitments contained in the new collective agreement, -159 €mn of additional provision recorded for workforce restructuring plans and -213 €mn of initial net accrual personnel costs due to restructuring plans relating to the decarbonization process.
  2. Preferential subscription share price on November 20th, 2014 (latest IPO)

(3)

Includes dividends assumed to be re-invested (2020 share price as of Nov 20th: 24.82 €/sh). Calculated with Bloomberg data

6

(4)

Socially Responsible Investors over total Capital as of December 2019 (2019 Sustainability Report)

Endesa @2030 The next 10 years

European Green Deal sets the path for carbon neutrality by 2050

Energy and

climate objectives

to 2030

Energy and

Climate strategic

framework

Reduction of GHG

Renewables(1)

Energy

Interconnection(3)

emissions

Efficiency(2)

Before Green

>40% vs 1990

>32%

-32.5%

15%

Deal

Green Deal

55 / 60% vs 1990

~38 / 40%

~36 / 40%

15%

(pending)

2030 Energy and

-23% vs 1990 @ 2030

Climate

42%

39.5%

>15%

CO2 neutral @ 2050

Integrated National

Plan (PNIEC)

Around 240 €bn investment opportunities for the Energy Transition in Spain

  1. Renewable energy as % of the total energy consumption

(2)

Savings in primary/final energy consumption versus reference level

8

(3)

Interconnection capacity as % of peak demand

European Recovery Fund

EU Next Generation Fund: +750 €bn

increase committed in 2021-24

Spain will receive 140 €bn, 72 €bn in

grants and 68 €bn in loans

Minimum of 30% allocated to decarbonize

the economy

2021 Spanish state budget includes

27 €bn

Endesa has identified a wide range of

eligible projects

EU recovery plan

(€bn) (1)

750

1,824

Loans

360

~15%

Grants(2)

390

1,074

~20%

EU budget

Next Generation

Recovery

2021-27

EU 2021-24

Plan

Energy Transition, a unique opportunity for an economic relaunch post-COVID

(1)

Excludes Innovation and Modernization Fund resources coming from the ETS that are out of MFF and Next GEN EU

9

(2)

Includes 6 €bn of Invest EU guarantees

Leveraging on these opportunities to strengthen our leadership in 2030

2021-30 Estimated Capex plan, €bn

~25 €bn

Renewables

~40%

Networks

~40%

Others

~20%

2021-30

@ 2030

RES capacity,

>10 GW

>18

GW

7.7

2020E

2030

% RES

>60%

RAB,

+12%

€bn

11.6

~13

2020E

2030

Free Power Clients,

mn

+23%

>7

5.7

2020E2030

Sustainable and long term value creation vision

10

Power Generation

Progressing towards full decarbonization in 2050

-18%

~-80%

Scope 1(1)

vs. ~-70% in Old Plan

(gCO2eq/kWh)

FULL

538

439

DECARBONIZATION

<200

<150

<95

2005

2017

2020E

2023

2030

2050

Emissions free production

36%

44%

~70%

~75%

~80%

~100%

Previous

<140

ESG target

Scope 3(2)

-16%

(Mton CO2)

Boosting our GHG reduction target to 80% by 2030

(1)

Scope 1, direct emissions

11

(2)

Scope 3, non direct emission (gas sales and others)

Power Generation

Coal fully phased out before 2030

Coal capacity evolution (GW)

2020E 2023 2030

5.2

4.8

2.8

Coal

Phase out

0.2

0.0

2017

2019

2020E

2021

2027

Coal production (TWh)

Coal production on total (%)

Coal emissions (mn ton CO2)

Plants (#)

1.8 0.1 0

3.2 0.1 0

1.7 0.08 0

3 1 0

Coal phase out brought forward from 2030

12

Power Generation

Developing Just Transition plans on coal sites

Andorra plan

Future

1.7 GW RES + BESS and synchronous capacity

  • 1.4 €bn Capex
    Timeline 2020 - 2025

Employment

100% Reskilling

80% de local employment for dismantling

4K FTE for construction

Sustainability

Circular Economy

Sustainable Construction &

Engineering

Value & Innovation

International recognition

Analysing H2 project

Committed to a sustainable transition in the affected local areas

13

Power Generation

Innovation through Battery Storage & Hydrogen

NonProjects-Mainland Mainland Projects

BESS(1) Hybridization with thermal &

RES

222 (2)

Mainland projects (MW)

Non- Mainland projects (MW)

55 (2)

Incorporate batteries to renewable fleet

Provides flexibility services to the system

Transform to manageable generation

Projects for all mainland plants > 25 MW

Batteries hybridization in Thermal & Renewables Groups

Improve security of supply

Increase reserve

Offers firm capacity

Green Hydrogen Projects

Number of potentially eligible projects

22

under the EU Recovery Fund

H2 Production

uses

Industrial thermal applications

Potential

Sustainable mobility

Non mainland generation remodelling

Power generation

Innovating with battery storage and green hydrogen projects

(1)

Battery Energy Storage System

14

(2)

Included in the 2021-23 Business Plan

& Networks

Iberian leadership in Infrastructure & Networks

Infrastructure

Key business drivers

End users

+6%

Digitalization

(mn)

Reliability

12.3

13.0

Efficiency

2020E

2030

OPEX

Resiliency

€/customer -21%

Flexibility

43

<34

2020E

2030

TIEPI(1)

(min)

-29%

62

44

2020E

2030

NIEPI(2) (#)

-31%

1.3

0.9

2020E

2030

New platform operating model to boost quality and resiliency

(1)

Tiempo de Interrupción Equivalente a la Potencia Instalada (Installed Capacity Equivalent Interruption Time)

15

(2)

Número de Interrupciones Equivalente a la Potencia Instalada (Installed Capacity Equivalent Number of Interruptions)

Customers

Customers at the center of our strategy

Power Free customers

(mn)

>23%

>7

Promote electrification of

5.7

consumption through integrated​

actions

offering of commodity and services

Create additional value through

2020E

2030

Strategic

new complementary products &

Demand Response

services

(GW)

+1 GW

1

Digitalization & Platformization

key to enhance customer journey

and efficiencies

0

2020E

2030

Power free unitary consumption B2C

(MWh/y)

>22%

>4.5

3.7

2020E

2030

Charging points

(k#)

72x

575

8

2020E

2030

Reference provider for new energy services and products

16

Platforms to manage higher complexity

Platforms

Enabling innovation and extraction of additional value from existing assets

Renewables managed by an Operating &

Maintenance platform system

Grid management platforms

Selling smart services designed around

prosumer

Offer to clients according to a digital platform design

Focusing on a new platform-based business model

17

2021-23 Operative Targets

Luca Passa

CFO

Decarbonization

Increase by ~50% our renewable

capacity by 2023

RES capacity

CO free emissions output (1)

2

(GW)

(%)

Strategic actions

Building up our pipeline to enable

growth and create value

Ambitious targets in terms of CO2

emissions reduction

+~50%

11.5 (2)

7.7

2020E

2023

+600bps

89%

83%

2020E

2023

Investment focus on renewable to support long term sustainable growth

(1)

Mainland output

19

(2)

Do not include 0.3 GW of BESS

Power Generation

Reshaping our generation mix

Total mainland capacity, GW

17.3

3.9

-2.5

18.6

RES

7.7

11.5

(1)

Nuke

3.3

2.5

Coal

3.3

Thermal

3.8

CCGT

CCGT

3.8

2020E

Renewables

Coal

2023

~45%

Renewable capacity

~62%

Total mainland output, TWh

-1.7

53.2

46.6

8.1

12.9

21.0

26.0

26.2

(2)

1.6

Coal

6.1

CCGT

CCGT

6.0

2020E

Renewables

Thermal

2023

~83%

CO2 emissions free

~89%

Renewable generation increase more than offset coal phase out

  1. Do not include 0.3 GW of BESS

(2) Load factors increase

20

Power Generation

Renewables as our main growth platform

Installed capacity(1), GW

Output by technology(1), TWh

+~50%

+3.9 GW

+63%

+8.1 TWh

11.5

-0.6

21.0

2.8

3.0

3.5

6.5

7.7

5.9

Solar

0.9

12.9

0.5

3.3

0.6

Wind

2.4

7.8

5.1

Hydro(2)

4.7

4.8

7.3

6.6

2020E

Wind

Solar

2023

2020E

Solar

Wind

Hydro

2023

Wind & Solar growth capex 2021-2023

3.3€bn (3)

~20% increase vs 2020-2022 plan

~20% capex increase to boost renewable capacity by 3.9 GW

(1)

Rounded figures

(3) Excluding 0.5 €bn of maintenance, BESS and H2

21

(2)

Includes mini-hydro

Power Generation

Solid pipeline to support renewable growth

Renewables pipeline(1) (GW)

Net pipeline

17.6

7.3 GW

26.0

2.1

5.2

0.6

0.5

(2)

Gross

COD

BESS

In

Early stage COD

Pipeline

2024-25

2021-23

execution

Net pipeline by technology

32%

7.3 GW

68%

Solar Wind

Indicative hedging strategy

33%33%Long term customers

Long term PPAs

Rest of portfolio

33%

IRR-WACC spread ~200bps

Renewables profitability enhanced through our customers base leadership

(1)

As of 31st October 2020

22

(2)

Approved by a Screening Committee, which authorized preliminary works. Initial phase of development

Electrification

Strategic actions

Total energy sales 2020E-23(1)

B2C

(TWh)

▪

Focus on customer loyalty

through digital and analytics

capacities

+8%

▪

Maximum tailoring of value

proposal and "Customer Journey"

99

B2B

91

▪

Expansion of customization &

consulting model leveraging on

digitalization and analytics

▪ Reinforcing proximity and trust

sentiment

2020E

2023

Main KPIs

2020E

2023

Free customers

5.7

6.1

+7%

(mn)

Regulated cust.

4.8

4.5

-5%

(mn)

Churn rate

(2)

11.7

10.7

-9%

(%)

E-home contracts

1.9

2.7

+42%

(mn)

Unique energy value proposal, integrated and differential

(1)

Total sales include international sales (2.6 TWh in 2020E and 2.7 TWh in 2023), not considered in the integrated margin

23

(2)

Churn rate B2C and B2B free

Customers

Pioneer commercial initiatives

Development of new value proposals and

new channels to increase customer

attraction

'Única' product

PersonalizedSimple

SustainableClear

Available proposals

basic

plus

premium

Energy

360 Protection

Revisions Optional

Revisions &

RepairOptional

24

Customers

Demand electrification through Endesa X platform

Main operative KPIs

Strategic actions

Value creation through "beyond commodity" new

services and products

Providing efficient solutions for homes, industry and

cities to pave the way towards the energy

transformation

Reference player in electric mobility

E-home contracts, mn

+42%

1.9

2.7

2020E

2023

Charging points(2), k#

~7x

8

56

2020E

2023

Demand Response,

MW(1)

161

2020E 2023

e-bus charging points, #

~10x

115

12

2020E

2023

Innovative solutions covering all types of customers needs

(1)

MW managed

25

(2)

Public and private

Infrastructure and Network

Strategic actions

Main operative KPIs

2.6€bn Capex (+30%)

OPEX €/customer

NIEPI(1) (#)

-12%

-23%

Sound operational efficiency to meet

43

38

1.3

1.0

regulatory standards

2020E

2023

2020E

2023

Significant improvement in service quality

TIEPI(2) (min)

% Losses OS

-3%

indicators

-27%

Reduction of losses through digitalization

62

45

9.8

9.5

2020E

2023

2020E

2023

Service and quality improvement driven by investment effort

(1)

Número de Interrupciones Equivalente a la Potencia Instalada (Installed Capacity Equivalent Number of Interruptions)

26

(2)

Tiempo de Interrupción Equivalente a la Potencia Instalada (Installed Capacity Equivalent Interruption Time)

A fully sustainable business model reflected in

SDGs impact

Capital allocation by SDG 2021-23

Circular economy

Circular Inputs

Promotion of circularity in the supply chain

8%

Sharing platforms

Development of ecosystems to electrify civil society

7.9 €bn

Product as a Service

Boost to electric mobility

+25%

53%

33%

Useful life extension

Non mainland decarbonization

94%

New life cycles

Futur-e plans

94% capex allocated to climate actions

27

Endesa @2023

2021-23 Financial Targets

Strategic plan at a glance

€bn

Cumulated gross capex vs previous plan

+25%

7.9

+1.6 €bn

6.3

2020-22

2021-23

Net Income

+12%

1.7

(2)

1.9

(3)

+0.2 €bn

2020E

2023

(1)

2020E

Ebitda like for like net of provisions

(3)

Net Ordinary Income

(2)

2020E

figure like for like net of provisions

EBITDA(1)

+10%

3.9

4.3

+0.4 €bn

2020E2023

Net Income / EBITDA(1)

-

0.4x0.4x

2020E2023

29

Power Generation

Decarbonization

Renewables

Cumulated capex(1), €bn

EGPE gross margin evolution, €bn

+~30%

3.8

+100%

2020E

2023

3.0

0.8

Opex/MWh

16

12

(€/MWh)

0.4(2)

0.1

EBITDA/Capex

11%

11%

(%)

0.3

2020-22

2021-23

2020E

2023

Capex acceleration drives gross margin growth and efficiencies

(1)

Includes maintenance capex, BESS and H2.

30

(2)

Managerial margin, including 0.1 €bn from renewables contribution to the integrated margin. EGPE includes wind, solar and mini hydro. It excludes large hydro.

Customers

Electrification

Energy management

Retail cumulated capex, €bn

+100%

0.4

0.2

2020-222021-23

Liberalized sales(1), TWh

+9%

7683

2022

5661

2020E2023

B2B B2C

Power integrated margin(2), €/MWh

~65

~66

Unitary

revenue

~32

~31

Unitary

integrated

margin

2020E

2023

Customer strategy providing a resilient integrated margin

(1) Liberalized sales considered in integrated margin. Excluded international sales (2.6 TWh in 2020E

(2) Includes Generation and Supply margin

and 2.7 TWh in 2023).

31

Customers

Endesa X

Cumulated capex, €bn

0.20.2

+~30%

2020-222021-23 E-mobility capex ~0.1 €bn

Gross margin, €bn

+100% ~0.2

25%

~0.1

5%

75%

95%

2020E2023

Mature business(2)

Growth business(1)

Evolving towards high potential growth solutions

(1)

Growth business: e-mobility and high potential growth products & services

32

(2)

Mature business: e-home,e-industry and e-City except products & services with high potential growth

Customers

Electrification

Digital new platforms enhancing interaction with clients

Operating platform for customers

Customer segments covered by Endesa X plaftorms

COST TO SERVE (1)

Opex/ customer, €/cl.

11.3

9.7

2020E

2023

B2C

B2B

B2G

Home

Flexibility

Smart cities

appliances

services

solutions

ecosystems

Digital contracts, mn

DIGITAL

5.6

6.0

INTERACTIONS

2020E

2023

E-billing, mn

CUSTOMIZED

4.2

5.3

OFFERING

2020E

2023

Electric mobility - JUICE PASS

Common customer operations management

Customer operations salesforce

(1) Power and gas. Including Social Bonus (2020E Cost to serve excluding Social Bonus: 10.4 €/customer)

33

Infrastructure & Networks

Infrastructures & Networks

Cumulated Gross Capex(1), €bn

RAB, €bn

Networks gross margin evolution, €bn

+30%

2.6

2.0

2020-22

2021-23

Net Capex,

1.5

2.2

+47%

€bn

Digital

0.8

1.3

+63%

Capex, €bn

+2%

11.8

11.6

2020E2023

-

2.52.5

0.40.4

2.12.1

2020E2023

RegulatedOther

30% capex growth driving RAB increase

(1)

Includes client contributions.

34

Efficiency program

Strategic actions

Workforce optimization related to coal phase out

Efficiency improvements from digitalization, platformization and process optimization

Opex(1) evolution, €bn

-10%

0.1

0.1

-0.4

2.4

2.0

1.8(2)

2014

2020E

CPI

Growth

Efficiency

2023

44%

33%

Opex(1)/ Gross margin

30%

Decarbonization and platformization provide further efficiencies

  1. Opex: Total fixed costs in nominal terms (net of capitalizations)

(2) Not including non-recurrent expenses

35

Key Financial Indicators

Gross capex by business, €bn

+25%

7.9

6.3

Renewables(2)

3.8

Retail +

3.0

Endesa X

0.6

Conventional

0.4

0.9

1.0

Generation(3)

Networks

2.0

2.6

2020-22

2021-23

Net Capex,

+28%

5.8

7.4

€bn

EBITDA(1) by business, €bn

+10%

3.9

0.1

0.0

0.0

4.3

0.3

0.6

0.3

1.4

Higher renewable contribution

1.4

0.2

Higher RAB in Distribution

0.2

Sales growth

2.0

Efficiencies

2.1

•

Lower RAB in non mainland

2020E

2023

Networks

Non-mainland

Mainland Gx + Retail

EGPE

25% increase in total capex supports +10% EBITDA growth

(1)

2020E Ebitda like for like net of provisions

(2)

Renewables capex includes maintenance, BESS and H2 investments

36

(3)

Includes Gross Capex in non mainland

Key Financial Indicators

Net Income, €bn

+12% 1.9

1.7 (1)

2020E2023

+12%

-0.2

1.9

0.4

1.7 (1)

2020E

EBITDA

D&A, financial

2023

& others

12% increase in Net Income supported by EBITDA growth

(1) Net of provisions (Provisions: 0.3 €bn)

37

Key Financial Indicators

Debt analysis

Source of funds allocation 2021-23, €bn

Gross debt, €bn

2.9

10.2

-7.4

0.2

7.3

0.2

9.2

10.0

-4.7

7.1

Sources

Incremental

Cash Capex

Dividends

2020E

2023

of funds (1)

debt

Net Debt

Cash & Equivalents

Old plan

9.1

1.4

-5.8

-4.7

2020-22

Cost of debt

1.8%

1.4%

Increase in net debt to boost growth, leveraging on extremely low cost of debt

(1) Includes FFO, IFRS 16 effect and Others

38

Credit metrics

FFO/EBITDA

FFO/Net Debt

Return on invested capital

76%

35%

33%

12%

11%

61%

1.8x

2.3x

2020E (1)

2023

2020E (2)

2023

2020E(1)

2023

Net debt/EBITDA

Strong investment effort for long term sustainable value creation

(1)

Calculated on Net Income and EBITDA net of provisions

39

(2)

Calculated on EBITDA net of provisions

Sustainable finance

An ambitious approach to sustainable finance instruments

2020 Sustainability linked transactions, €bn

Strategic actions

First listed sustainable finance corporate ECP Program in Europe

Growing relevance of sustainability linked instruments

Expanding sustainability approach to other short term and working capital instruments

0.1

4.7

4.0

0.6

Club Deal

SDG7 Euro

Retail Customers

2020 total

Bank Facilities

Commercial Paper

Factoring

transactions

Strategy alignment and active role in promoting sustainability

40

Sustainable finance

Growing weight of sustainable debt

Sustainable finance as an instrument to

engage stakeholders

actions

Expanding initiatives across diverse ESG

Strategic

goals

Potential opportunities from EU recovery

plan

Share of sustainable debt

+18pp +14pp

27%

41%

6.6 €bn

7.3 €bn

45%

10.2 €bn

55%

59%

73%

2019

2020E

2023

Sustainable sources

Traditional sources

Sustainable finance representing ~60% of total gross debt by 2023

41

Closing remarks

José Bogas

CEO

Creating value for our shareholders

Gross Capex

Pay out(1)

(€bn)

>3x

2.6

1.7

0.8

2014

2020

2021-23 avg.

(%)

100

85(2)

80

70

70

2014 2020 2021 2022 2023

Dividend policy confirmed and in line with a more ambitious growth profile

(1)

On Net Ordinary Income

43

(2)

Equivalent pay out referenced to 2014 Net Income from ongoing activities

Closing Remarks

Financial Targets

EBITDA lfl

(€bn)

Net Ordinary Income (2)

(€bn)

Net income lfl (3)

(€bn)

Pay out

(%)

Implicit DPS

(€/share)

Implicit Dividend Yield(5)

Gross Capex (€bn)

2020E

2021

2022

2023

3.9 (1)

4.0

4.1

4.3

2.0

1.7

1.8

1.9

1.7

1.7

1.8

1.9

100%

80%

70%

70%

~1.9 (4)

~1.3

~1.2

~1.3

7.8%

5.4%

5.0%

5.4%

2.0

3.0

2.9

CAGR

2020E-23

+3%

+4%

  • 2021-23
    7.9

(1)

2020E like for like EBITDA excluding +515 €mn of provision reversal from the commitments contained in the new collective agreement, -159 €mn of additional provision recorded for workforce restructuring plans and -213 €mn

of initial net accrual personnel costs due to restructuring plans relating to the decarbonization process.

(2)

Reported Net Income - Net Results on Impairment of Non-Financial Assets over 10 €mn - Initial net accrual of personnel costs due to restructuring plans relating to the decarbonization process - Net Costs corresponding to the

Public Responsibility Plan for the Health Crisis COVID-19.

(3)

Estimated Reported Net Income adjusted by net provisions effect (107 €mn)

(4)

2020E implicit DPS corresponding to a Net Ordinary income of 2.0 €bn: ~1.9 €/share

44

(5)

Share price as of 18/11/20: 24.23€

Closing Remarks

Annual targets achieved since 2014

2030 vision focused on decarbonization, enabling infrastructures,

electrification and customer centricity

Digital platform development for a unique energy value proposal

Sound investment acceleration into the Energy Transition

Sustainability and circular strategy delivering long term value creation

45

Appendix

Key Financial Indicators

Commodity overview and update to latest market consensus

2021-23 plan

Brent price, $/bbl

CO2 price, €/ton

2020-22 plan

65

65

66

30.0

31.0

32.0

25.0

55

59

23.5

24.0

24.5

48

39

2020E

2021

2022

2023

2020E

2021

2022

2023

TTF, €/MWh

16

19

20

17

14

16

9

2020E

2021

2022

2023

PVB, €/MWh

20.620.820.9

17.7

14.716.2

9.5

2020E

2021

2022

2023

47

Key Financial Indicators

Power market overview and update to latest market consensus

Mainland Spain demand(1), TWh

Average daily market price(2), €/MWh

2021-23 plan

2020-22 plan

258

53.2

53.5

53.3

253

256

254

258

47.2

48.4

49.2

248

32.6

238

2020E

2021

2022

2023

2020E

2021

2022

2023

Spain GDP growth, %

Thermal gap, TWh

7.7%

3.9%

2.0%

1.7%

1.9%

48

1.5%

38

38

34

33

31

32

-9.9%

2020E

2021

2022

2023

2020E

2021

2022

2023

  1. In bus bars

(2) Arithmetic power prices

48

Key Financial Indicators

Net Income per year, €bn

1.7

(1)

1.7

1.8

1.9

2020E 2021 2022 2023

EBITDA per year(1), €bn

3.9

4.0

4.1

4.3

0.6

0.4

0.3

0.4

1.4

1.3

1.3

1.4

0.3

0.3

0.2

0.2

2.0

2.0

2.0

2.1

2020E

2021

2022

2023

Networks

Non-mainland

EGPE

Gx & Sx (2)

(1)

2020E like for like EBITDA and Net Income. Rounded figures

49

(2)

Gx & Sx EBITDA figure includes Generation and Supply business, Corporate Structure, Services and Adjustments and does not include Non-mainland generation

Key Financial Indicators

Comparison of old plan vs. updated plan

EBITDA, €bn

+ Supply Margin

+ Supply Margin

+ Fixed costs

+ Fixed costs

- OTC references

- OTC references

- Catalan tax

- Catalan tax

- Gas Margin

- Gas Margin

3.9

3.9

4.1

4.0

4.3

4.1

4.3

2020E

2021

2022

2023

Plan 2020-22

Plan 2021-23

50

Key Financial Indicators

Gross(1) Capex analysis

Gross Capex by business, €bn

7.9

6.3

3.8

Renewables(2)

3.0

Networks

3.0

2.9

2.6

2.0

2.0

1.7

1.5

Gx(3)

0.6

0.8

0.8

0.9

0.9

1.0

Supply

0.4

0.3

0.3

0.6

0.4

0.2

0.2

0.2

2021

2022

2023

TOTAL

Old Plan

  1. Includes client contributions
  2. Rounded figures
  3. Renewables capex includes maintenance, BESS and H2 investments
  4. Includes Capex in non mainland
  5. Customer capex includes Cost to Acquire new customers, Connections and Investments associated with new services.

Gross Capex by nature(2), €bn

7.9

6.3

5.2

Asset

development3.8

Asset

1.6

1.7

management

Customer (5)

0.9

1.0

2020-22

2021-23

51

Key Financial Indicators

Net(1) Capex analysis

Net Capex by business(2), €bn

7.4

5.8

3.8

Renewables(3)

3.0

2.8

2.8

2.2

Networks

1.8

1.7

1.5

1.5

Gx(4)

0.6

0.9

0.7

0.7

0.8

1.0

Supply

0.4

0.3

0.3

0.6

0.3

0.2

0.2

0.2

2021

2022

2023

TOTAL

Old Plan

  1. Not including client contributions
  2. Rounded figures
  3. Renewables capex includes maintenance, BESS and H2 investments
  4. Includes Capex in non mainland
  5. Customer capex includes Cost to Acquire new customers, Connections and Investments associated with new services.

Net Capex by nature(2), €bn

7.4

5.8

Asset

5.2

3.8

development

Asset

1.7

management

1.6

Customer (5)

0.6

0.4

2020-22

2021-23

52

Net capacity and output evolution

Total capacity(1, 2), GW

Total output(1), TWh

21.5

20.9

22.6

60

63

19.6

56

57

7.7

11.5

13

14

16

21

9.8

8.4

3.3

26

26

27

26

Coal

2.5

3.3

3.3

3.3

(1)

CCGT

3.8

3.8

3.8

3.8

CCGT

Coal

2

1

7

7

6

CCGT

CCGT

6

4.3

4.1

4.0

4.0

10

10

11

10

2020E

2021

2022

2023

2020E

2021

2022

2023

~36%

Renewable capacity

~52%

~69%

CO2 emissions free

~75%

RES

Nuke

Thermal

Non mainland

(1)

Rounded figures

53

(2)

BESS capacity not included (0.3 GW)

Key Financial Indicators

Financial debt maturity calendar

Gross balance of maturities(1)

€bn

7.3

3.8

3.3

1.3

3.1

1.8

2.3

0.5

0.1

0.1

0.5

0.3

1.4

1.2

0.1

1.2

0.4

0.2

0.1

0.2

2021

2022

2023

2024

2025+

TOTAL

ECP's and other marketable securities(2)

Bank Debt

Other debts

  • Average life of debt: 4.1 years
  • Coverage of 15 months of debt maturities

(1)

Outstanding 2020E. Rounded figures.

(2)

Notes issued are backed by long-term credit lines and are renewed on a regular basis. Accounting criteria maturities.

54

Gas business

Volumes sold 2020E-23(1), TWh

Key figures(2)

+3%

8082

CCGT sales

21

20

Retail

59

62

2020E2023

Free customers (mn)

Regulated cust. (mn)

Total customers (mn)

Churn rate (3)

(%)

2020E2023

1.4

1.6

+14%

0.2 0.2 -

1.7

1.8

+6%

10.9%

10.4%

-0.5 PP

(1)

Not included Wholesale business

(3) Churn rate B2C and B2B free

(2)

Rounded figures

55

2020E Spanish power market

Customers

Energy sold

Business

Residential

Total

(1)2

Endesa Market Share

Customers (mn)

Regulated

Free

Total

0.3

0.8

1.1

10.8

17.6

28.4

11.0

18.4

29.4

43%

29%

Endesa

market share

(1)2

34%

34%

Business

Residential

Total

Endesa Market Share

(1)2

Energy sold (TWh)

Regulated

Free

Total

1.4

151.1

152.5

26.1

54.7

80.8

27.5

205.8

233.3

47%

33%

Endesa

market share

(1)2

30%

32%

Internal estimate based on Forecast 2020 Regulated; % calculated on Total Regulated Market Internal estimate based on Forecast 2020 Free; % calculated on Total Free Market.

(1) Portugal is not included

56

Environmental, Social and Governance annexes

Sustainability Plan

Sustainable business model, driving change

through growth accelerators

2021 - 2023

Sustainability Plan

* Growth accellerators include innovation, digital supports, circular economy and sustainable finance

Focus on People Centricity

People we work with

Plan actions

2020E

2021-23 targets

Gender - % of women in selection processes(1)

Climate survey(2)

Performance appraisal(2)

36% women involved in recruiting processes

  • 100% of people involved
  • 86% of people participating
  • 8,567 people involved
  • 100% of eligible people

50% women involved in recruiting processes

  • 100% of people involved
  • 87% of people participating

100% of people involved

Reskilling and upskilling - Promote and plan reskilling and upskilling programs for Endesa people in order to support

the energy transition

(1) It excludes the selection processes involving the blue collars

(2) Eligible and reachable people having worked in the Group for at least 3 months during 2020

61

Local and global communities

Plan actions

2020E(1)

2030 targets(1)

High-quality, inclusive and fair education

0.3 mn beneficiaries

0.7 mn beneficiaries in 2030

Access to affordable and clean energy

1.9 mn beneficiaries

4.8 mn beneficiaries in 2030

Employment and sustainable

0.6 mn beneficiaries

1.9 mn beneficiaries in 2030

and inclusive economic growth

(1) Cumulated figures since 2015

62

Focus on Corporate Governance

Corporate governance structure

Composition

8%

31% BoD's composition

62%

Executive Proprietary Independent

BoD and Commitees

Shareholder's meeting

Audit firm

Board of Directors

(13 members)

Audit and Compliance

Appointments and

Sustainability and

Committee

remuneration Committee

Governance Committee

64

Board of Directors composition

Board of Directors

Board of Directors' diversity

J. Sánchez-Calero

J. Bogas

P. Grieco

F. Starace

A. de Paoli

A. Cammisecra

M. Roca

A. Echevarría

I. Garralda F. de Lacerda

P. González

E. Bieto

A. Koplowitz

Chairman

Sustainability & Governance C.

Proprietary

.

CEO

Executive

Sustainability & Governance C.

Independent

Vice Chairman

Audit & Compliance C.

Appointments & Remuneration C.

Audit & Compliance C.

Sustainability & Governance C.

Appointments & Remuneration C.

Appointments & Remuneration C.

Audit & Compliance C.

Audit & Compliance C.

Appointments & Remuneration C.

Audit & Compliance C.

Appointments & Remuneration C.

Sustainability & Governance C.

By gender

By tenure

15%

31%

46%

69%

38%

Male

Female

< 4 years

Over 6 years

4-6 years

Equality gender policies reaching 30% women

already in 2020

65

Short-term variable remuneration(1)

2020 Objective

RangeWeight

Net ordinary income

Maximum 120%

25%

FFO

Maximum 120%

15%

Fixed costs

Maximum 120%

20%

Decarbonization & Digitalization

Maximum 120%

20%

Safety in the workplace

Maximum 120%

20%

(1) 2020 executive director variable remuneration

Type of target

Economic

Financial

Economic

Business

ESG

Macro objective

Profitability

Cash and debt management

Efficiency

Environmental

Safety

66

Long-term variable remuneration(1)

Objective

(0%)

Entry (100%)

Over I (150%)

Over II (180%)

Type of target

TSR(2)

50%(3)

ROACE(4)

40%(3)

CO2 emissions reduction (gCO2 /KWh) (4)

10%(3)

Endesa's TSR

Endesa's TSR

Endesa's TSR

Endesa's TSR

<100% of

from 100 % to

from 110 % to

> 115% of

TSR

110% of

115% of

TSR

TSR

TSR

≤49,3%

49,3%

50%

≥50,7%

≥171,5

171,5

166,4

≤162,9

MarketPerformance

FinancialProfitability

ESGEnvironmental

  1. Executive director Long Term Incentive Plan (LTI) 2020 2022. 30 % payment (if any) in the 4th year. 70% payment (if any) in the 5th year (deferred payment)
  2. Average TSR Endesa compared to average TSR EUROSTOXX Utilities Index EMU.
  3. (%) Weight in the variable remuneration
  4. The target has been defined for a thermal gap of 31 TWh in 2022, as foreseen in the BIP 2020-2022. In the event that the thermal gap varies, it will be adjusted using the following formula: E(Ht)= (1,6 x Ht) + 122

67

Focus on Innovation & Cybersecurity

Innovation & Cybersecurity

Innovation

Plan actions

2021-23 targets

Cybersecurity(1)

Plan actions

2021-23 targets

Promoting innovation culture

1000 people involved in promotional innovation actions (workshops, trainings, intrapreneurship)

3 projects approved Make it Happen!

Execution of cyber exercises involving industrial plants/sites

Disseminating the IT security culture and changing people's behaviour

in order to reduce risks

36 cyberexercises executed on industrial plants/sites

15 cyber security knowledge sharing events held each year

(1) Group targets

69

Glossary of terms (I/II)

Item

Average cost of debt (%)

Average life of debt (number of years)

Cash flow from operations (€mn)

Debt maturities coverage (months)

EBITDA (€mn)

EBIT (€mn)

Fixed costs (Opex) (€mn)

Gross margin (€mn)

Leverage (times)

Net Capex (€mn)

Funds from Operations (FFO, €mn)

Definition

Cost of gross financial debt / gross average financial debt

(Principal x number of days of term) / (Principal in force at the end of the period x number of days of the period)

Net cash provided by operating activities

Maturity period (months) for vegetative debt that could be covered with the liquidity available

Revenues - Purchases and Services + Work performed by the entity and capitalized - Personnel expenses - Other fixed operating expenses

EBITDA - Depreciation and amortization

Personnel expenses + Other fixed operating expenses - Work performed by the entity and capitalized

Revenues - Purchases and Services

Net financial debt / EBITDA

Gross tangible and intangible Capex - assets from clients' contributions and subsidies

The higher profit before tax and non-controlling interests net of depreciation and amortisation and other adjustments + Change in Net Working Capital + Variation in the payment of the Income Tax

70

Glossary of terms (II/II)

Item

Definition

Net financial debt (€mn)

Long and short term financial debt - Cash and cash equivalents - Derivatives recognized as financial assets

Net financial results (€mn)

Financial Revenues - Financial Expenses - Foreign Exchanges

Revenues (€mn)

Sales + Other operating revenues

Electric Integrated Margin (€mn)

Contribution margin Gx+Sx - Margin SENP - Margin SCVP - Margin gas - Margin Endesa X - Others

Unitary electric integrated margin (€/MWh)

Electric Integrated Margin / Electric sales in the liberalized market in Spain and Portugal

Gas retail unitary margin (€/MWh)

Gas margin from retail sales / Gas Retail sales

Endesa X Gross Margin (€mn)

Gross margin generated by the added value products and services commercialized by the Endesa X unit

71

Disclaimer

In accordance with the provisions of Article 226 of the Spanish Securities Market Act, this document includes Insider Information.

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 other factors that may be beyond ENDESA's control or may be difficult to predict.

Forward-looking statements include, but are not limited to, information regarding: estimated future earnings; anticipated increases in generation and market share; management strategy and goals; estimated cost reductions; tariffs and pricing structure; estimated capital expenditures and other investments; estimated increases in capacity and output and changes in capacity mix; repowering of capacity and macroeconomic conditions. The main assumptions on which these expectations and targets are based are related to the regulatory setting, exchange rates, increases in production and installed capacity in markets where ENDESA operates, increases in demand in these markets, assigning of production amongst different technologies, and the availability and cost of the gas, coal, fuel oil and emission rights necessary to run our business at the desired levels.

In these statements we avail ourselves of the protection provided by the Private Securities Litigation Reform Act of 1995 of the United States of America with respect to forward-looking statements.

The following important factors, in addition to those discussed elsewhere in this document, could cause actual financial and operating results and statistics to differ materially from those expressed in our forward-looking statements:

Economic and industry conditions: significant adverse changes in the conditions of the industry, the general economy or our markets; the effect of the prevailing regulations or changes in them; tariff reductions; the impact of interest rate fluctuations; the impact of exchange rate fluctuations; the impact of energy commodities price fluctuations; natural disasters; the impact of more restrictive environmental regulations and the environmental risks inherent to our activity; potential liabilities relating to our nuclear facilities.

Transaction or commercial factors: any delays in or failure to obtain necessary regulatory, antitrust and other approvals for our proposed acquisitions or asset disposals, or any conditions imposed in connection with such approvals; our ability to integrate acquired businesses successfully; the challenges inherent in diverting management's focus and resources from other strategic opportunities and from operational matters during the process of integrating acquired businesses; the outcome of any negotiations with partners and governments. Delays in or impossibility of obtaining the pertinent permits and rezoning orders in relation to real estate assets. Delays in or impossibility of obtaining regulatory authorisation, including that related to the environment, for the construction of new facilities, repowering or improvement of existing facilities or its closure or decommissioning; shortage of or changes in the price of equipment, material or labour; opposition of political or ethnic groups; adverse changes of a political or regulatory nature in the countries where we or our companies operate; adverse weather conditions, natural disasters, accidents or other unforeseen events, defaults quantifiable of monetary obligations by the counterparties to which the Company has effectively granted net credit and the impossibility of obtaining financing at what we consider satisfactory interest rates.

Regulatory, environmental and political/governmental factors: political conditions in Spain and Europe generally; changes in Spanish, European and foreign laws, regulations and taxes.

Operating factors: technical problems; changes in operating conditions and costs; capacity to execute cost-reduction plans; capacity to maintain a stable supply of coal, fuel and gas; acquisitions or restructuring; capacity to successfully execute a strategy of internationalisation and diversification.

Competitive factors: the actions of competitors; changes in competition and pricing environments; the entry of new competitors in our markets.

Further details on the factors that may cause actual results and other developments to differ significantly from the expectations implied or explicitly contained in this document are given in the Risk Factors section of the current ENDESA regulated information filed with the Comisión Nacional del Mercado de Valores (the Spanish securities regulator or the "CNMV" for its initials in Spanish).

No assurance can be given that the forward-looking statements in this document will be realised. Except as may be required by applicable law, neither Endesa nor any of its affiliates intends to update these forward-looking statements.

This presentation does not constitute a recommendation regarding the securities of Endesa, S.A.. This presentation does not contain an offer to sell or a solicitation of any offer to buy any securities issued by Endesa, S.A. or any of its subsidiaries or affiliates.

72

IR Team

Contact us

Mar Martinez

Head of Investor Relations

Investor Relations team

Isabel Permuy

Javier Hernandez

Francesc Trilla

Juan Carlos Jimenez

Sonia Herranz

Paloma de Miguel

Contacts

Email: ir@endesa.es

Phone: + 34 91 213 15 03

  • 34 91 213 90 49 Website:www.endesa.com

73

73

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Endesa SA published this content on 25 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 November 2020 12:04:02 UTC