ENDESA : Strategic Plan Update 2020-22

Endesa 2020-22 Strategic Plan Update

November 27, 2019

Agenda

José Bogas

Our Positioning

CEO

Luca Passa

Our vision

Strategic Plan

Strategic plan

CFO

Update: 2020-22

Key Financial Indicators

José Bogas

Closing Remarks

2

Endesa 2020-22 Strategic Plan Update

Our positioning

Our positioning

A portfolio of strategic assets(1)

1st network

operator(2)

1st player in

generation

Largest retail

customer base

Infrastructures & Networks

117 TWh distributed (3) ~12 mn Smart meters(4)

Generation

61.4 TWh output ~58% CO2 free

Customers

~99 TWh power sales 12.3 mn Customers

First integrated player leading energy transition in Iberia

(1)	2019E	(3)	Net distributed energy	4
(2)	By distributed energy	(4)	Includes LV and HV full deployment

2.5

~27

Target

2019-21 Old plan

38%

Our positioning

Delivery on 2019-21 Strategic Plan: operating targets

2018 2019E

Renewables focus (% of total capacity)

CO2 Footprint (% CO2 emission free generation)

29%

~50%

31%
58% ✔	Decarbonisation
~56%

Power Integrated Margin (€/MWh)

Sales (TWh liberalized(1))

Endesa X (mn e-home clients)

Digitalisation (€mn Digital Capex)

• Ahead of target

25.726

~82		83		90	Customer value

2.12.2

0.3

0.7(2)

1.3(3)

Digitalisation

Sound progress on all strategic pillars

1. Excluding international sales and Small Consumer Voluntary Price (SCVP)

(2)	Cumulated figure 2018-2019E	5
(3)	Cumulated figure 2018-2021

Our positioning

Delivery on 2019-21 Strategic Plan: financial targets

2014	2019E ✔	CAGR	TSR, %
2014-19E

Above target

2019: €1.8 bn

CAPEX (€bn)	0.8		1.9		+19%
EBITDA (€bn)	3.1		3.7		+4%
Net ordinary income (€bn)	0.9		1.5		+11%
Gross DPS (€/sh)	0.76		~1.4		+13%
Net ordinary income / EBITDA	29%		41%

	148(2)
	(2)
13.5€(1)	57
11

EUROEuroStoxxTOXX IbexIBEX35

UtilTIL..

11.2%

SRI Investors(3)

• In line with targets

Improved economic results driven by repositioning through a sustainable strategy

(1)	Preferential subscription share price on November 20th, 2014 (latest IPO)	(3) Socially Responsible Investors over total Capital as of December 2018	6
(2)	Includes dividends assumed to be re-invested (2019 share price as of Nov 25th: 24.62 €/sh). Calculated with Bloomberg data

Our positioning

Repositioning capital allocation on renewables

Generation capex: 2014 vs 2019E		Mainland installed capacity, GW

13%

33%

2014	2019E
0.3 €bn
1.2 €bn
	67%
87%

20x capex increase in decarbonizing our generation mix

Renewables

17.1	19.0
4.7	7.4

12.4

11.6

20142019E

	RES on mainland
28%	~40%
capacity

Conventional Generation

Reshape of our business model focusing on decarbonisation

7

Our positioning

Enabling platforms for the Energy Transition

	Infrastructure & Networks
		+25%
Net Capex
(€bn)		0.5
	0.4
	2014	2019E
Smart meters	5	~12 (1)
(mn)

Retail (Power)

	2014		2019E
Free clients
4.5		5.9
(mn)
Unitary integrated margin(2)
19		26
(€/MWh)

Endesa X

2014 2019E

Net distributed energy	111		117	E-Home clients
	1.3		2.2
(TWh)
			(mn)
Unitary Opex	59		43	Charging points(3)
	-		5
(€/end user)		(k#)

Established a leading position in infrastructures and new services

(1)	Includes LV and HV full deployment	(3) Public (1k) and private (4k) charging points	8
(2)	Includes Generation margin + Supply margin

Endesa 2020-22 Strategic Plan Update

Our vision

Our vision

Sector trends shaping our capital allocation

Decarbonisation
	Enabling		Ecosystems
	Infrastructure		& Platforms

Electrification

10

Our vision

New opportunities arising from decarbonisation

CO2 emissions and actions needed to achieve Paris' goals

GtCO2	Current trajectory

Energy efficiency

Renewables

Other solutions

2010

2020

2030

2040

1. IEA WEO 2018 SDS Scenario

Revolution of the energy paradigm towards

non-fossil sources. Electricity is the key element:

• Increases efficiency in final energy consumption
• Clean energy: zero CO2 and other emissions
• Allows to increase renewable energy

Electrification as key element to achieve the Paris' goals

11

vision		Integrated National Energy and Climate Plans
Our		2021-30
		GHG emissions	Renewables	Energy
		reduction	efficiency

2030 EU targets		40% vs. 1990 level		>32% on final		32.5%(1)
				energy consumption

Interconnection

15%

Spain

Energy and

Climate

strategic

framework

Energy and Climate Integrated National Plan (PNIEC)

21% vs. 1990		42% on final
	energy use
(48% vs. 2005)				39.6%(1)		15%
	74% on power
		generation
	Draft on Climate Change and Energy Transition Law
		Fair Transition Strategy

236 €bn investments' opportunities from the Energy Transition in Spain

(1) Savings in primary energy consumption vs. reference level	12

Our vision

Accelerated coal phase out over the plan period and beyond

			Business Plan 2020-22
Coal capacity	5.3	5.1	0.2	99%	0.2	-
(GW)
	26.3
Coal production
(TWh)						COAL PHASE
						OUT
		8.1		99%
			0.1		0.1
	2015	2019E	2022		2024	0.0
		2030

Mainland coal phase out by 2022

13

Our vision

Progressing towards total decarbonisation in 2050

Total mainland capacity, GW		Total mainland output, TWh

+0.9 GW	19.0		2.8
in 2019		-4.5	17.3
Rnws	7.4
Nuke						10.2
		3.3
Thermal	4.5		Coal		3.3
		3.8		CCGT	CCGT	3.8
			2019E	Renewables	Coal	2022
			~40%		Renewable capacity	~60%

	49.5		8.4	-6.0	52.1
	9.4				17.8
	26.3
						26.5(1)
				Coal
	6.6
	7.2		CCGT	CCGT	7.8
		2019E	Renewables	Thermal	2022
		~72%		CO2 emissions free	~85%

Generation mix fully reshaped

(1) Load factors increase	14

Our vision

Renewable generation 2019-22: our main growth platform

Installed capacity, GW		Output by technology, TWh

									+38%														~2x
+0.3 GW Solar												10.2											17.8
									0.9
+0.6 GW Wind											2.2											1.6
in 2019E	7.4				1.9															3.6	3.3
Solar
	0.3									3.2			9.4
	2.3
Wind											3.2				7.6
													0.1
																	4.0
Hydro(1)	4.8									4.8			5.3							6.9
	2019E		Solar			Wind	2022		2019E	Solar	Wind	Hydro	2022

~40% increase of renewable installed capacity in 2022

(1) Includes mini-hydro	15

Our vision

Strategy in Renewables

Renewables pipeline(1) (GW)

Pipeline by technology

Indicative hedging strategy

16.1	12%
		33%	Long term
Total 4.1 GW			customers
	4.1 GW		33%
		Long term PPAs
12.0
			Rest of portfolio
2.9	88%		33%
1.2

Gross Pipeline Early stage	COD	COD
		2020-22	Beyond 2022	Solar	Wind
	4.6 GW(2) with awarded connecting			IRR-WACC spread >200bps
		points

Leveraging on our customer base to accelerate renewables development

(1)	As of October 2019	16
(2)	Incudes 0.5 GW in early stage

Our vision

Progressing towards total decarbonisation in 2050

CO	specific emissions(1), g CO /kWh
2	2
-18%
538	~ -70%
439
Scope 1(1)	<290	Full
(g CO2/kWh)		decarbonisation
	<140	@ 2050

2005	2017	2020		2030	2050
	36%		44%		~60%		~75%		~100%	Emissions free production
Scope 3(2)			16% Absolute Scope 3
(Mton CO2)			CO2 emissions reduction

Speed up in our fully decarbonisation objectives

(1)	Scope 1, direct emissions	17
(2)	Scope 3, non direct emission (gas sales and others)

Our vision

Enabling Infrastructure

Energy system evolution

		Pivotal role in the Energy Transition
	Grid Edge Transformation enabling platformization of
DSO/TSO
		the sector

Microgrids	Aggregator

Innovation and resilience required in a changing

environment

Engagement of customers for a more active role

Infrastructures to enable integration of new renewables and electric vehicle

18

vision		Enabling Infrastructure
Our		Continuous focus on operational efficiency

Net distributed energy, TWh

		+3%
	117	121
	1	2
	2019E	2022
Losses(1) (%)	9.5	9.2

Minutes of	64		52
interruption(2)

OPEX, €/end user

-9%

43	39
2019E	2022

Resiliency and flexibility

Service quality improvement

Deployment of smart meters and

smart grids

Better service quality reducing interruptions, losses and improving efficiency

(1)	System Operator (S.O) criteria
(2)	Own + Programmed + Transport	19

vision		Ecosystems and platforms
Our

Share of power on total energy consumption(1),%

23%

29%

2018

2030

Electric vehicles		0		5
(mn)
Transport (TWh)	7		24
Residential share
	38%		45%
of power

Endesa X: Acceleration of electrification

Charging points(2) (th.)	e-Home clients (mn)
		+7x					+27%

36	2.8
	2.2

5

2019E

2022

2019E

2022

Platforms development to support demand electrification

(1)	Source: Spanish PNIEC
(2)	Public and private charging points	20

Our vision

A fully sustainable capex plan reflected in SDGs impacts

Capital allocation by SDG 2019E-22

9%

7.7 €bn

56%

26%

SDGs impacts at 2022

		2014
~60%
	28%
RES Capacity/Mainland Capacity
~12 mn		5 mn
Smart Meters (1)
36 k
	n.a.
charging points (public and private)

~90% allocated to climate action (SDG 13)

(1) Includes LV and HV full deployment

21

Endesa 2020-22 Strategic Plan Update

Strategic plan

Plan		Key Financial Indicators
-22 Strategic
	Net Capex analysis, €bn
		By nature
2020
			+20%

By business

+1.3 €bn

By strategic pillar

	7.7
	6.4
Asset	4.8
development	3.3

6.4

0.7

2.0

7.7

0.5

3.8

Decarbonisation		5.2
Electrification		0.3

Asset	2.4
management	2.3
Customer (1)	0.7	0.6
		2018-21	2019E-22
Gross capex
7.1		8.4

1.92.0

1.81.4

2018-212019E-22

Conventional

Generation(2)Networks

Retail + Endesa X Renewables(3)

Enabling infrastructure		2.0
Ecosystems & Platforms		0.2

More than 20% increase in total capex and 45% increase in asset development

(1)	Customer capex includes Cost to Acquire new customers, Connections and Investments associated with new services.
(2)	Includes Net Capex in non mainland	23
(3) Renewables capex includes Hydro investments

2020-22 Strategic Plan

Decarbonisation

Renewables

Renewables net capex 2019E-22

EGPE(1) gross margin evolution, €bn

6%	1.3x
	0.7
3.8 €bn
0.3
94%
2019E	2022

AssetAsset

development management

Doubling renewable capex drives gross margin growth

(1) EGPE includes wind, solar and mini hydro. It excludes large hydro

24

2020-22 Strategic Plan

Electrification

Maintaining leadership in the power business

Total energy sold 2019E-22(1), TWh

							+4%
					(3)
	99.1		103.1
Regulated	13.6			12.9
		22.3
Free B2C	20.0
Free B2B	65.6			67.9
			2019E	2022
Free customers			5.9					6.6	+12%
mn
Regulated customers			4.8					4.1	-14%
mn
Churn rate (4)			9.6%				8.9%	-7%
%

Power integrated margin(2), €/MWh

Unitary revenue

~68

~69

Unitary integrated	~26	~30
margin

2019E2022

Consolidating integrated margin growth

(1)	Total liberalized sales include international sales (2.7 TWh in 2019E and 3.0 TWh in 2022), not	(3)	Rounded figures
(2)	considered in the integrated margin.	(4)	Churn rate B2C free	25
Includes Generation and Supply margin

Plan		Electrification
Strategic22-		Consolidating as the 2nd gas operator
2020				Volumes sold 2019E-22(1), TWh
						+3%
				87		89
			CCGT sales	20		24

Key figures

		2019E	2022	Var. 2019E-22
Free customers		1.4		1.6	+14%
mn
Regulated customers	0.2	0.2	+0%
mn

Retail

6765

Total customers(2)	1.7	1.8	+6%
mn

2019E2022

Churn rate (%)		8.7%		8.2%

Unitary margin(3)		~3		~3
€/MWh

Lower sales in retail due to progressive electrification of demand

1. Not included Wholesale business

(2)	Rounded figures	26
(3)	Gas unitary margin does not include CCGT sales

2020-22 Strategic Plan

Electrification

Improving efficiency and digitalisation

Digital KPIs(1)

+29%

Cost to Serve(1) , €/customer

e-billing, mn

2.8 3.5 4.5

+4pp

-14%

Digital sales, % digital

6%	10%	14%

10.9 10.6

9.1

Digital contracts, mn

+6%

4.4 4.7 5.0

2018 2019E 2022

2018

2019E

2022

Digitalisation driving cost to serve reduction

1. Power and gas. Not including Social Bonus

27

2020-22 Strategic Plan

Enabling infrastructures

Investments in networks

Net Capex(1) 2019E-22, €bn

	1.9				2.0		Resiliency and flexibility in grids facing
Smart meters							the Energy Transition
				0.1
0.1
Customers
		0.1				0.8
	0.7
Asset Management					+11%	1.1 €bn (~50%) capex in digitalisation to
								2.0	promote efficiencies
							1.8
Asset Development	1.0			1.1		vs. old plan
												100% capex devoted to RAB
	2018-21			2019E-22

Double digit growth in Networks capex

(1) 2019E-2022 Gross capex 2.6€bn (includes client contributions)

28

Plan		Enabling infrastructures
Strategic22-2020		Margin evolution

Networks margin, €bn

	2.6			2.5
		-0.15	+0.03
Other	0.4
		0.4
Regulated	2.2
			2.1
	2019E	Regulated Mg	Others	2022

RAB, €bn	11.6		11.2

2020-25 New remuneration draft

Confirms 5.58% RoR (6.003% in 2020)

Remuneration of digitalisation investments,

confirming our expectations.

New incentive scheme

New regulatory framework draft in line with expectations

29

2020-22 Strategic Plan

Ecosystems and Platforms

Endesa X

Net Capex 2019E-22				Gross margin, €bn
					~0.2
36%					~20%
0.2 €bn	~0.1
64%		~10%	~80%
		~90%
				2019E	2
				2022
New business(1)	Mature business(2)

Leveraging existing businesses to support growth in e-Mobility and e-City

(1)	New business: e-city,e-mobility and e-finance	30
(2)	Mature business: e-home and e-industry

Plan		Efficiency through digitalisation
-22 Strategic
2020			2019E-22 Digitalisation Net Capex

		3%
		11%
81%	1.3 €bn	5%

Generation

Networks

Retail

Endesa X

2022 EBITDA contribution: ~150 €mn

Key highlights

Networks: ~1.1 €bn for digitalisation

• Quality Plan & remote control
• DigI&N and Digital Hub

Renewables: Advanced automation of construction and O&M

• Wind & Solar maintenance

Thermal Gx: Increased flexibility and automation

• Drones & augmented reality with Smart Glasses

Customers: Process automation and increased offering

• B2B and B2C CRM
• Channels and internal process digitalisation

Digitalisation contributes with 25% to EBITDA growth

31

2020-22 Strategic Plan

Efficiency through digitalisation

Unitary KPIs of the Efficiency Plan per area

Opex(1) evolution, €bn

			-5%
			0.1
2.4		0.1		(0.3)
	2.0				1.9(3)
2014	2019E	CPI	Growth	Efficiency	2022
44%	35%	Opex(1)/ Gross margin	30%

			2014		2019E	2022		Var. 2019E-22
Unitary cost	(2)		51		45		45	-
k€/MW
Unitary cost			59		43		39	-9%
€/end user
Cost to Serve		13		11		9	-18%
€/customer

Efficiency more than compensate the increase of inflation and growth

(1)	Opex: Total fixed costs in nominal terms (net of capitalizations)
(2)	Thermal and renewable costs combined. Includes Corporate fees	32
(3)	Not including non-recurrent expenses

Endesa 2020-22 Strategic Plan Update

Key Financial Indicators

Key Financial Indicators

Strategic plan at a glance

€bn

Cumulated net capex vs previous plan

+20%

	7.7	+1.3 €bn
6.4

2018-212019E-22

Net Ordinary Income(1)

			+27%
			1.9		+0.4 €bn
1.5
2019E	2022

EBITDA

+16%

3.7	4.3	+0.6 €bn

2019E2022

Net Debt

+20%

7.18.5

2019E2022

(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)	34

Key Financial Indicators

Profitability and credit metrics

Profitability		Return on invested capital		Credit metrics

														+300 bps
		+400 bps						+90 bps
												37%
			44%
40%					12.1%	34%
		11.2%

1.9x2x

2019E(1)	2022	2019E(1)	2022	2019E	2022
Net Income/EBITDA		ROIC	FFO/Net Debt	Net debt/EBITDA

Focus on profitability and value creation

(1) Calculated on Net Ordinary Income	35

Key Financial Indicators

Key Financial Indicators

EBITDA analysis

EBITDA by business, €bn		EBITDA per year, €bn

+16%

		-0.1
3.7	0.3		-0.1
	0.4
1.1		Higher renewable contribution
0.2		Reference prices increase
0.3
		Sales growth

Efficiencies

2.1 • Regulatory revision

2019E

Electrification & Decarbonisation	Networks

4.3(1)

1.5

0.5

0.2

2.0

2022

Non-mainland

		4.1	4.3(1)
	3.9
3.7
	1.3	1.4	1.5
1.1
0.2	0.3	0.4	0.5
0.3	0.3	0.3	0.2
2.1	2.0	2.0	2.0
2019E	2020	2021	2022
EGPE	Gx & Sx (2)

EBITDA growth driven by liberalized business and renewables

(1)	Rounded figures	36
(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

Key Financial Indicators

Net ordinary income evolution

Net Ordinary Income, €bn

+27%

1.9

1.8

1.7

1.5

2019E 2020 2021 2022

	~-0.2	1.9
1.5	+0.6

2019E	EBITDA D&A, financial	2022
	& others

27% increase in Net Ordinary Income vs. 16% in EBITDA

37

Indicators		Key Financial Indicators
	Debt analysis
Key Financial
		Gross debt, €bn

8.8

7.40.3

Source of funds allocation 2020-22, €bn

9.5

0.3

7.1

8.5

3.7

(5.8)

		2019E	2022
	Net Debt	Cash & Equivalents
Cost of debt
	1.8%			2.1%
(%)

							(1.4)
			(4.7)
			(0.4)
FFO	Capex(1)	FCF	Dividends		IFRS 16	Chg. Net
				&Others		Debt

Increase in net debt to boost growth

(1) Net Capex = Gross Capex - assets from clients' contributions - subsidies	38

Financial Indicators

Sustainable finance

Key financing with sustainability instruments

Key

Sustainable debt 2019E, %

10%

€7.1bn

net debt

New green loans linked to renewable

investments: 635 €mn

March, 2019

EIB first Green Loan, 335 €mn

15 years

May, 2019

ICO first Green Loan, 300 €mn

Path to 100% Sustainable Debt

Debt increase by 1.4 €bn will rise the sustainable finance ratio

Sustainable criteria across all financial tools will be pursued

Promoting sustainability criteria among financial counterparties

12 years

Sustainable finance plays a key role in promoting sustainable development over the long term

39

Endesa 2020-22 Strategic Plan Update

Closing Remarks

Closing Remarks

Financial Targets

2019E		2020		2021		2022

CAGR

2019E-22

EBITDA

(€bn)

Net Ordinary Income(1)

(€bn)

Pay out(2)

(%)

Implicit DPS

(€/share)

Net Capex

(€bn)

~ 3.7		~ 3.9		~ 4.1		~ 4.3

~ 1.5		~ 1.7		~ 1.8		~ 1.9

100%		100%		80%		70%

~1.4		~1.6		~1.4		~1.3

1.9		1.6		2.0		2.2

+5%

+8%

• 2019E-22
  7.7

1. Reported Net Income - Net Result on Disposals of Non-Financial Assets (over 10 €mn) - Net Results on Impairment of Non-Financial Assets (over 10 €mn)
2. 70% pay out long term perspective

41

Closing Remarks

First-class integrated player in Iberia

Outstanding delivery track record

Decarbonisation and electrification driving ample opportunities

Strategy aimed at sustainable growth path

Long term value creation for all stakeholders

42

Endesa 2020-22 Strategic Plan Update

Appendix

Key Financial Indicators

Commodity overview and update to latest market consensus

Brent price, $/bbl

2020-22 plan

2019-21 plan

69.0 67.5

65.0 66.0

68.0 65.0 63.5

2019E 2020 2021 2022

Coal API2, $/ton

77.0 75.0 76.0 78.0

73.0 75.0 74.0

2019E 2020 2021 2022

CO2 price, €/ton

23.5 23.5 24.0 24.5

16.0 17.5 18.0

2019E 2020 2021 2022

PVB, €/MWh

21.4 20.6 20.8 20.9

20.6	20.5	20.0
2019E	2020	2021	2022

44

Key Financial Indicators

Power market overview and update to latest market consensus

Mainland Spain demand(1), TWh

2019-22 plan

2018-21 plan

		266
259	263
	256	258
	253
250

2019E 2020 2021 2022

Spain GDP growth, %

2.3%

2.0%

2.2%		1.8%
	2.0%		1.5%
		1.7%
2019E	2020	2021	2022

Average daily market price(2), €/MWh

56.5 55.0 55.4

50.2 53.2 53.5 53.3

2019E 2020 2021 2022

Thermal gap, TWh

63

523940

343331

2019E 2020 2021 2022

1. In bus bars

(2) Arithmetic power prices

45

Key Financial Indicators

Net(1) Capex analysis

Net Capex, €bn

				2.2
	1.9		2.0
Renewables(2)		1.6
0.8		1.0	1.4
		0.6
Networks	0.5	0.5	0.5
		0.5
Gx(3)
0.4	0.4	0.4
	0.2
Supply	0.2	0.1	0.1
0.1
	2019E	2020	2021	2022

1. Exclude client contributions
2. Renewables capex includes Hydro investments

(3) Includes Net Capex in non mainland

46

Key Financial Indicators

Gross(1) Capex analysis

Gross Capex(2), €bn

2.4

		2.1		2.1
		1.8
Renewables(3)
0.8		1.0	1.4
		0.6
Networks	0.6	0.7
		0.7
			0.7
Gx(4)
0.4	0.4	0.4
		0.2
Supply
0.2	0.1	0.1
0.1
		2019E	2020	2021	2022

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

Gross Capex by nature, €bn

			8.4
		7.1
Asset	3.3	4.9
development
Asset	2.4	2.3
management
Customer (5)	1.4	1.2
		2018-21	2019E-22

47

Key Financial Indicators

Comparison of old plan vs. updated plan

EBITDA, €bn

		+ OTC references				+ Supply margin
		+ Supply margin				+ Higher renewables
		+ Fixed costs				+ Fixed costs
		- Thermal generation				-	Non mainland margin
		- Non mainland margin				-	OTC references & lower thermal Gx
								4.3
		3.8	3.9	4.0		4.1
3.7	3.7

2019E	2020	2021	2022
	Plan 2019-21	Plan 2020-22

48

Endesa 2020-22

Strategic Plan Update

Environmental, Social and Governance annexes

Endesa 2020-22 Strategic Plan Update

Sustainability Plan

Sustainability Plan

Sustainable business model driving change through

innovation

2020-22 Sustainability Plan

Endesa public committment to the United Nations

Endesa 2020-22 Strategic Plan Update

Focus on People Centricity

Focus on People Centricity

Engaging people we work with

Plan actions		2019E		2020-22 targets

		•	8,566 people involved
Open Feedback Evaluation					• 100% of people involved
		•	100% of eligible people

		•	100% of people involved		•	100% of people involved
Climate survey(1)		•	83% of people participating		•	87% of people participating

Gender - % of women in selection		29% women involved		45% women involved in
processes(2)		in recruiting processes		recruiting processes

Promotion of digital skills' dissemination		40% of people involved in digital
		100% of people involved in digital
among all employees		skills training3		skills training(3)

1. Eligible and reachable people having worked in the Group for at least 3 months / 2. It excludes the selection processes involving the blue collars / 3. % accumulated with the training given since 2018

53

Focus on People Centricity

Engaging local communities

Plan actions

2019E(1)

2020-22 targets

High-quality, inclusive and fair education		0.17 mn beneficiaries		0.7 mn beneficiaries in 20301

Access to affordable and clean energy		1.6 mn beneficiaries		4.8 mn beneficiaries in 20301

Employment and sustainable		0.5 mn beneficiaries		1.7 mn beneficiaries in 20301
and inclusive economic growth

1. Cumulated figures since 2015

54

Endesa 2020-22

Strategic Plan Update

Focus on Corporate Governance

Focus on Corporate Governance

Corporate governance structure

Composition		BoD and Commitees

Shareholder's meeting		Audit firm

36% BoD's 55%

composition

Board of Directors

(11 members)

9%

Executive

Proprietary

Independent

Audit and Compliance		Appointments and
Committee		remuneration Committee

56

Governance

Board of Directors composition

Corporate

Board of Directors

J. Sánchez-Calero

Chairman

on

.

Focus

J. Bogas

CEO

P. Grieco

Proprietary Director

F. Starace

Vice Chairman

A. de Paoli

Audit & Compliance C.

Appointments & Remuneration C.

A. Cammisecra

Proprietary Director

M. Roca

Audit & Compliance C.

Appointments & Remuneration C.

A. Echevarría

Audit & Compliance C.

Appointments & Remuneration C.

H. Revoredo

Audit & Compliance C.

Appointments & Remuneration C.

I. Garralda

Audit & Compliance C.

Appointments & Remuneration C.

F. de Lacerda

Audit & Compliance C.

Appointments & Remuneration C.

Proprietary

Executive

Independent

Board of Directors' diversity

By gender

By tenure

18%

18%

27%

	82%		55%
Male	Female	1-3 years	4-6 years	Over 6 years

57

Focus on Corporate Governance

Short-term variable remuneration(1)

2019 Objective

RangeWeight

Net ordinary income		Maximum 120%		25%

FFO		Maximum 120%		15%

Fixed costs		Maximum 120%		20%

Decarbonisation		Maximum 120%		20%

Safety in the workplace		Maximum 120%		20%

1. 2019 executive director variable remuneration

Type of target

Economic

Financial

Economic

Business

ESG

Macro objective

Profitability

Cash and debt

management

Efficiency

Environmental

Safety

58

Corporate Governance

Long-term variable remuneration(1)

Objective

Entry (50%)

Target (100%)

Over I (150%)

Over II (180%)

Type of target

Focus on

TSR(2)

50%(3)

ROACE(4)

40%(3)

CO2 emissions reduction (gCO2 /KWh)

10%(3)

Endesa's TSR	Endesa's TSR	Endesa's TSR	Endesa's TSR
from 90 % to	from 100 % to	from 110 % to
> 115% of
100% of	110% of	115% of
TSR
TSR	TSR	TSR

-3% Target	Target	+1.5% Target	+3% Target

+3% Target	Target	-3% Target	<=-5% Target

MarketPerformance

FinancialProfitability

ESGEnvironmental

1. Executive director Long Term Incentive Plan (LTI) 2019 2021. 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. In case of negative absolute TSR of Endesa, the incentive (if any) is reduced on the basis of a regressive scale of the same negative percentage of the absolute TSR of Endesa share, multiplied for a constant value equal to 1.5
3. (%) Weight in the variable remuneration
4. Cumulative for the period 2019 2021

59

Endesa 2020-22

Strategic Plan Update

Focus on Innovation & Cybersecurity

Innovation & Cybersecurity

Innovation & Cyber security

Innovation

Plan actions

2020-22 targets

Cibersecurity

Plan actions	2020-22 targets

Focus on

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

Promoting innovation culture

5 innovation events per year

Coverage of web applications exposed to internet with advanced cyber security application solutions

Disseminating the information security culture and changing people's behavior in order to reduce risks

100% of internet web applications protected through advanced cyber security solutions

15 cyber security knowledge sharing events per year

61

Glossary of terms (I/II)

Item	Definition
Average cost of debt (%)	Cost of gross financial debt / gross average financial debt
Average life of debt (number of years)	(Principal x number of days of term) / (Principal in force at the end of the period x number of days of the period)
Cash flow from operations (€mn)	Net cash provided by operating activities
Debt maturities coverage (months)	Maturity period (months) for vegetative debt that could be covered with the liquidity available
EBITDA (€mn)	Revenues - Purchases and Services + Work performed by the entity and capitalized - Personnel expenses	- Other fixed
operating expenses
EBIT (€mn)	EBITDA - Depreciation and amortization
Fixed costs (Opex) (€mn)	Personnel expenses + Other fixed operating expenses - Work performed by the entity and capitalized
Gross margin (€mn)	Revenues - Purchases and Services
Leverage (times)	Net financial debt / EBITDA
Net Capex (€mn)	Gross tangible and intangible Capex - assets from clients' contributions and subsidies
Funds from Operations (FFO, €mn)	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

62

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

63

Disclaimer

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.

64

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: [e-mail]

Phone: + 34 91 213 15 03

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

65