ENDESA S A : overcomes Covid impact in 2020 with a 36% increase in net ordinary income

• The electricity company increased its EBITDA on a like-for-like basis to 4,027 million euros, up 5%
• Endesa reported net ordinary income of 2,132 million euros last year, 36% higher than in 2019, exceeding guidance
• This growth in profit will enable it to distribute a dividend 6% above the expected figure: 2.014 euros per share.
• EBITDA compared on a like-for-like basis with the previous year also rose to 4,027 million euros, 5% more than the forecast of 3,900 million euros.
• Endesa showed resilience in a challenging year like 2020 while gaining flexibility for the future thanks to efficiency measures in the thermal generation, distribution and supply businesses
• The company was also widely acclaimed for its progress in sustainability during the year: 15% of its shareholders are already linked to ESG criteria and the company maintains a prominent presence in the world's main socially responsible investment indexes
• Progress in decarbonisation with the closure in June of the Compostilla and Teruel power plants will enable the company to achieve the CO2 emission-free production target set for mainland Spain for 2022 by 2020: 85%. The new target for 2023 is to reach 89%.
• Stronger leadership in electric mobility with a network of 7,100 public and private charging stations by the end of 2020, 42% more than by year-end 2019
• Improved debt levels compared to guidance, with net debt of 6.9 billion euros. The average cost of debt was lower than the already very competitive level of 2019: down from 1.8% to 1,7%. Gross debt to EBITDA ratio rose from 1.7 to 1.8 times

Endesa today presented its results for the year 2020, showing strong performance despite the challenges posed by the impact of the pandemic. The company is already reaping the rewards of its firm commitment to sustainability, both in terms of international recognition and progress in decarbonisation. Endesa can now meet its greenhouse gas (CO₂) emission-free electricity generation targets two years ahead of schedule. Specifically, the year closed with 85% of mainland generation free of GHG emissions, a goal initially planned for 2022.

First, Endesa achieved ordinary net profit of 2,132 million euros, 36% more than in 2019. This figure is the basis for the distribution of the dividend, which will exceed guidance announced to the market, rising to 2.014 euros per share, 37% more than the previous year. This will bring Endesa's dividend yield to approximately 9%, based on the share price at 31 December. Endesa will pay out 100% of its 2020 ordinary net profit to its shareholders. Starting in 2021, it will undertake a new pathway of gradual reduction of the payout from 80% for the current year to the 70% announced for 2022 and 2023 to adapt to the significant increase in investment planned for the coming years: 7.9 billion euros between 2021 and 2023, and 25 billion euros through to 2030.

Net income attributable to the Parent, which takes into account the extraordinary impacts of the year, amounted to 1,394 million euros, including an impairment of generation assets in non-mainland territories of 253 million euros. In 2019 this figure stood at 171 million euros after being strongly influenced by the provision for the closure of the coal-fired generation business (1,105 million euros) and another related to non-mainland generation (304 million euros).

EBITDA (gross operating profit) grew 5% compared to 2019 on a like-for-like basis (excluding impacts on personnel expenses arising from the application of the 5th Framework Collective Bargaining Agreement and provisions associated with the Process Decarbonisation and Digitisation Plan). The figure came to 4.027 million euros. If these items are taken into account, this figure stands at 3,783 million euros, a decrease of 1.5% with respect to the previous year. Endesa took a 120 million euro hit to its EBITDA as a result of covid.

José Bogas, CEO of Endesa, said about 2020 performance: 'We achieved strong operational and financial performance in a year that was full of challenges at all levels due to the impact of the pandemic. We continue on our path of decarbonisation, digitalisation and electrification on the basis of robust results that will also allow us to distribute a truly outstanding dividend in the current climate. 2020 is also the year in which we have tangibly materialised our motto of leaving no one behind, neither as a result of the Energy Transition process that we believe must be fair, nor as a result of the Covid pandemic, against which we have deployed a Public Accountability Plan endowed with 25 million euros.'