Capital Markets
November 25th, 2020 Ready for the next decade
1 Agenda
Our positioning José Bogas Endesa @2030 CEO The next 10 years
Operative Targets Luca Passa CFO Endesa 2021-23 Financial Targets
José Bogas Closing remarks
2 Our positioning
José Bogas CEO A portfolio of strategic assets(1)
1st player in generation 56.2 TWh output (2)
~83% CO2 free mainland
(3) 1st network operator 105 TWh distributed (4) 11.6 €bn RAB 12.3 mn end users
Largest retail customer base ~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
Target 2022 Target 2022 Target 2022 2014 2020E 2014 2020E 2014 2020E Old plan Old plan Old plan ✔ ✔ Power Integrated Smart-meters RES (1) 32% 19 ~32 ~30 5 >12 >12 ~45% ~60% Margin (€/MWh) (mn) ✔ Distributed (2) Free Power CO2 (%) ~50% ~83% ~85% 4.5 5.7 6.6 (4) 109 105 121 Clients (mn) energy (TWh)
Endesa X (k# Unitary Opex Coal (3) (TWh) 22.2 1.6 0 - 8.0 36.0 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 (2) % mainland CO2 emission free generation (4) In supplier busbars 5 Delivery on 2020-22 Strategic Plan Financial targets
TSR, % CAGR 2014- 2014 2020E
170 20E
150 163 (3) 130 Net CAPEX (€bn) 0.8 1.5 11% 110 ✔ 90 EBITDA (€bn) 3.1 3.9(1) 4% 70 80 50 ✔ Net ordinary income (€bn) 0.9 2.0 14%
30 13.5€ (2) 10 -2 ✔ Gross DPS (€/sh) 0.76 ~1.9 16% (10) ENDESA EUROSTOXX Ibex 35 UTIL.
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
Reduction of GHG Energy Renewables(1) Interconnection(3) emissions Efficiency(2)
Before Green Energy and Deal >40% vs 1990 >32% -32.5% 15% climate objectives to 2030 Green Deal (pending) 55 / 60% vs 1990 ~38 / 40% ~36 / 40% 15%
Energy and 2030 Energy and -23% vs 1990 @ 2030 Climate strategic Climate 42% 39.5% >15% Integrated National CO2 neutral @ 2050 framework 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 recovery plan
2.000 (1) (€bn) 750 1,824
EU Next Generation Fund: +750 €bn 1.800 increase committed in 2021-24 1.600 Loans 360 ~15%
1.400 Spain will receive 140 €bn, 72 €bn in Grants(2) 390
1.200 grants and 68 €bn in loans 1,074 ~20% Minimum of 30% allocated to decarbonize 1.000
the economy 800
600
2021 Spanish state budget includes 400 27 €bn 200 Endesa has identified a wide range of
00 eligible projects 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 @ 2030
RES capacity, >10 GW GW >18 ~25 €bn 7.7
2020E 2030 % RES >60% ~40% RAB,
Renewables €bn +12% 11.6 ~13
2020E 2030 ~40% Free Power Clients, Networks mn +23% >7 5.7
~20% Others 2020E 2030 2021-30
Sustainable and long term value creation vision 10
Progressing towards full decarbonization in 2050 Power Generation Power
-18% ~-80% Scope 1(1) (gCO2eq/kWh) vs. ~-70% in Old Plan FULL 538 DECARBONIZATION 439 <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) (Mton CO2) -16%
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)
Coal fully phased out before 2030 Power Generation Power
Coal capacity evolution (GW)
2020E 2023 2030
5.2 Coal production 1.8 0.1 0 4.8 (TWh)
Coal production 3.2 0.1 0 on total (%) 2.8 Coal Phase out Coal emissions 1.7 0.08 0 (mn ton CO2)
0.2 0.0 Plants (#) 3 1 0 2017 2019 2020E 2021 2027
Coal phase out brought forward from 2030
12 Developing Just Transition plans on coal sites
Andorra plan Power Generation Power
Future Employment
1.7 GW RES + BESS and 100% Reskilling synchronous capacity 80% de local employment for > 1.4 €bn Capex dismantling Timeline 2020 - 2025 4K FTE for construction
Sustainability Value & Innovation
Circular Economy Sustainable Construction & International recognition Engineering Analysing H2 project
Committed to a sustainable transition in the affected local areas 13
Innovation through Battery Storage & Hydrogen Power Generation Power
BESS(1) Hybridization with thermal & Green Hydrogen Projects RES Mainland projects (MW) 222 (2)
Non- Mainland projects (MW) 55 (2) Number of potentially eligible projects 22 under the EU Recovery Fund
Incorporate batteries to renewable fleet
Provides flexibility services to the system H2 Production Transform to manageable generation Industrial thermal applications Projects for all mainland plants > 25 MW
Mainland Projects Mainland Sustainable mobility
Batteries hybridization in Thermal & Renewables Groups Non mainland generation remodelling Potential Potential uses
Improve security of supply Power generation Mainland Mainland
- Increase reserve Projects
Non Offers firm capacity
Innovating with battery storage and green hydrogen projects
(1) Battery Energy Storage System 14 (2) Included in the 2021-23 Business Plan Iberian leadership in Infrastructure & Networks
End users TIEPI(1) (mn) +6% (min)
Digitalization -29% Infrastructure Infrastructure Networks &
Reliability 12.3 13.0 62 44
Efficiency 2020E 2030 2020E 2030 OPEX NIEPI(2) (#) €/customer
Key business drivers business Key -21% -31% Resiliency
1.3 43 Flexibility <34 0.9
2020E 2030 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 at the center of our strategy Customers
Power Free customers Power free unitary consumption B2C (mn) (MWh/y) >23% >22% >7 >4.5 5.7 3.7 Promote electrification of consumption through integrated offering of commodity and services
2020E 2030 2020E 2030 Create additional value through new complementary products & Demand Response Charging points services (GW) (k#) +1 GW 1 72x 575 Strategic actions Strategic Digitalization & Platformization key to enhance customer journey and efficiencies 0 8 2020E 2030 2020E 2030
Reference provider for new energy services and products 16 Platforms to manage higher complexity
Enabling innovation and extraction of additional value from existing assets
▪ Renewables managed by an Operating & Maintenance platform system
▪ Grid management platforms 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
(1) RES capacity CO2 free emissions output
(GW) (%)
Increase by ~50% our renewable
capacity by 2023 13 ,00 90 ,00%
89 ,00%
12 ,00
88 ,00% 89%
11 ,00 (2) +~50% 11.5 +600bps87 ,00%
10 ,00
Building up our pipeline to enable 86 ,00%
growth and create value 9,0 0 85 ,00%
84 ,00%
8,0 0
83 ,00%
7,0 0
Strategic actions Strategic 7.7 82 ,00% 83%
6,0 0 Ambitious targets in terms of CO2 81 ,00%
emissions reduction 5,0 0 80 ,00% 2020E 2023 2020E 2023
Investment focus on renewable to support long term sustainable growth
(1) Mainland output (2) Do not include 0.3 GW of BESS 19
Reshaping our generation mix Power Generation Power Total mainland capacity, GW Total mainland output, TWh
53.2 -1.7 -2.5 18.6 8.1 17.3 3.9 46.6 21.0 12.9 RES (1) 7.7 11.5
Nuke (2) 3.3 26.0 26.2
2.5 Coal 3.3 Thermal 1.6 Coal 3.8 CCGT CCGT 3.8 6.1 CCGT CCGT 6.0 2020E Renewables Coal 2023 2020E Renewables Thermal 2023
~45% Renewable capacity ~62% ~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
Renewables as our main growth platform Power Generation Power Installed capacity(1), GW Output by technology(1), TWh
+3.9 GW +8.1 TWh +~50% +63% 11.5 21.0 -0.6 2.8 3.0 3.5 6.5 7.7 0.9 5.9 Solar 0.5 12.9 0.6 Wind 2.4 3.3 5.1 7.8
(2) 4.7 4.8 Hydro 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
Solid pipeline to support renewable growth Power Generation Power Renewables pipeline(1) (GW) Net pipeline by technology Indicative hedging strategy
Net pipeline 32% 33% 33% Long term 7.3 GW customers 17.6 7.3 GW 26.0 Long term PPAs 68% 2.1 Rest of portfolio 5.2 33% 0.6 0.5 (2) Gross Early stage COD COD BESS In Pipeline 2024-25 2021-23 execution Solar Wind IRR-WACC spread ~200bps
Renewables profitability enhanced through our customers base leadership
st (1) As of 31 October 2020 22 (2) Approved by a Screening Committee, which authorized preliminary works. Initial phase of development Electrification
Total energy sales 2020E-23(1) Main KPIs B2C (TWh) ▪ Focus on customer loyalty through digital and analytics 2020E 2023 Δ capacities Free customers +7% ▪ Maximum tailoring of value +8% (mn) 5.7 6.1 proposal and “Customer Journey” 99 Regulated cust. -5% (mn) 4.8 4.5 B2B 91 (2) ▪ Expansion of customization & Churn rate -9% (%) 11.7 10.7 Strategic actions Strategic consulting model leveraging on digitalization and analytics E-home contracts ▪ Reinforcing proximity and trust (mn) 1.9 2.7 +42% sentiment 2020E 2023
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
Pioneer commercial initiatives Customers
‘Única’ product Development of new value proposals and new channels to increase customer attraction Personalized Simple
Sustainable Clear
Available proposals
basic plus premium Energy
360 Protection
Revisions Optional Revisions & Optional Repair
24
Demand electrification through Endesa X platform Customers
Main operative KPIs
Demand Response, Value creation through “beyond commodity” new E-home contracts, mn MW(1) services and products +42%
Providing efficient solutions for homes, industry and 1.9 2.7 161 cities to pave the way towards the energy 2020E 2023 2020E 2023 transformation
Charging points(2), k# e-bus charging points, # Strategic actions Strategic ~7x Reference player in electric mobility ~10x 115 56 8 12 2020E 2023 2020E 2023
Innovative solutions covering all types of customers needs
(1) MW managed (2) Public and private 25 Infrastructure and Network Infrastructures and Networks
Main operative KPIs
2.6€bn Capex (+30%) OPEX €/customer NIEPI(1) (#) -12% -23%
43 Sound operational efficiency to meet 38 1.3 1.0 regulatory standards 2020E 2023 2020E 2023
(2) % Losses OS Significant improvement in service quality TIEPI (min) Strategic Strategic actions indicators -27% -3%
62 9.8 9.5 Reduction of losses through digitalization 45
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
New life cycles Futur-e plans 94%
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 EBITDA(1)
+25% +10%
+1.6 €bn +0.4 €bn 7.9 4.3 6.3 3.9
2020-22 2021-23 2020E 2023
Net Income Net Income / EBITDA(1)
+12% -
(3) +0.2 €bn 1.7 (2) 1.9 0.4x 0.4x
2020E 2023 2020E 2023
(1) 2020E Ebitda like for like net of provisions (3) Net Ordinary Income (2) 2020E figure like for like net of provisions 29 Decarbonization Renewables
Power Generation Power Cumulated capex(1), €bn EGPE gross margin evolution, €bn
+~30% +100% 3.8 2020E 2023
3.0 0.8 Opex/MWh (€/MWh) 16 12
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. (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. 30
Electrification Customers Energy management
Retail cumulated capex, €bn Liberalized sales(1), TWh Power integrated margin(2), €/MWh
+100% +9% Unitary ~65 ~66 revenue 0.4 83 76 22 0.2 20
Unitary 56 61 ~32 ~31 integrated margin
2020-22 2021-23 2020E 2023 2020E 2023
B2B B2C
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
Endesa X Customers
Cumulated capex, €bn Gross margin, €bn
0.2 +100% ~0.2 0.2 25% +~30% ~0.1 5% 75% 95%
2020-22 2021-23 2020E 2023 E-mobility capex ~0.1 €bn
Mature business(2) Growth business(1)
Evolving towards high potential growth solutions
(1) Growth business: e-mobility and high potential growth products & services (2) Mature business: e-home, e-industry and e-City except products & services with high potential growth 32
Electrification Customers Digital new platforms enhancing interaction with clients
Operating platform for customers Customer segments covered by Endesa X plaftorms
Opex/ customer, €/cl. B2C B2B B2G
COST TO 11.3 Home SERVE (1) 9.7 Flexibility Smart cities appliances services solutions 2020E 2023 ecosystems
Digital contracts, mn
DIGITAL Electric mobility – JUICE PASS 5.6 6.0 INTERACTIONS 2020E 2023 Common customer operations management E-billing, mn CUSTOMIZED Customer operations salesforce 5.3 OFFERING 4.2 2020E 2023
(1) Power and gas. Including Social Bonus (2020E Cost to serve excluding Social Bonus: 10.4 €/customer) 33 Infrastructures & Networks
Cumulated Gross Capex(1), €bn RAB, €bn Networks gross margin evolution, €bn
Infrastructure Infrastructure Networks & +30% +2% - 2.6 11.8 2.5 2.5 2.0 11.6 0.4 0.4
2.1 2.1
2020-22 2021-23 2020E 2023 2020E 2023
Net Capex, Regulated Other 1.5 2.2 +47% €bn
Digital 0.8 1.3 +63% Capex, €bn
30% capex growth driving RAB increase
(1) Includes client contributions. 34 Efficiency program
Opex(1) evolution, €bn
-10%
Workforce optimization related to coal phase out
0.1 0.1 -0.4
2.4 Strategic actions Strategic Efficiency improvements from digitalization, 2.0 platformization and process optimization (2) 1.8
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 EBITDA(1) by business, €bn
+25% +10% 4.3 3.9 0.1 0.0 0.0 7.9 0.3 0.6 0.3 6.3 3.8 1.4 1.4 Renewables(2) • Higher renewable contribution 3.0 Retail + 0.2 • Higher RAB in Distribution 0.2 Endesa X 0.6 • Sales growth Conventional 0.4 0.9 (3) 1.0 • Efficiencies Generation 2.0 2.1 • Lower RAB in non mainland Networks 2.0 2.6
2020-22 2021-23 2020E 2023 Net Capex, 5.8 7.4 +28% €bn 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 (3) Includes Gross Capex in non mainland 36 Key Financial Indicators
Net Income, €bn
+12%
+12% 1.9 -0.2 1.9 0.4 (1) (1) 1.7 1.7
2020E 2023 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 7.1 -4.7
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% 61% 11% 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
4.7 0.1 First listed sustainable finance corporate ECP Program in Europe
4.0 Growing relevance of sustainability linked
instruments Strategic actions Strategic Expanding sustainability approach to other short term 0.6 and working capital instruments 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
Share of sustainable debt
Sustainable finance as an instrument to +18pp +14pp engage stakeholders
27% 41% Expanding initiatives across diverse ESG 45% 7.3 €bn 10.2 €bn 6.6 €bn 55% goals 59%
73% Strategic actions Strategic Potential opportunities from EU recovery plan 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
2.6 100 (2) 1.7 85 80 70 70
0.8
2014 2020 2021-23 avg. 2014 2020 2021 2022 2023
Dividend policy confirmed and in line with a more ambitious growth profile
(1) On Net Ordinary Income (2) Equivalent pay out referenced to 2014 Net Income from ongoing activities 43 Closing Remarks Financial Targets CAGR 2020E 2021 2022 2023 2020E-23 EBITDA lfl 3.9 (1) 4.0 4.1 4.3 +3% (€bn)
Net Ordinary Income (2) 2.0 1.7 1.8 1.9 (€bn) Net income lfl (3) 1.7 1.7 1.8 1.9 +4% (€bn)
Pay out 100% 80% 70% 70% (%)
Implicit DPS ~1.9(4) ~1.3 ~1.2 ~1.3 (€/share)
(5) Implicit Dividend Yield 7.8% 5.4% 5.0% 5.4%
S 2021-23 Gross Capex 2.0 3.0 2.9 7.9 (€bn)
(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 (5) Share price as of 18/11/20: 24.23€ 44 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
Brent price, $/bbl CO2 price, €/ton 2021-23 plan 2020-22 plan 65 65 66 30.0 31.0 32.0 25.0
55 59 48 23.5 24.0 24.5 39
2020E 2021 2022 2023 2020E 2021 2022 2023
TTF, €/MWh PVB, €/MWh
19 20 20.6 20.8 20.9 16 17 17.7
16 14 14.7 16.2 9 9.5
2020E 2021 2022 2023 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
53.2 53.5 53.3 258 253 256 258 47.2 48.4 49.2 254 248 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 EBITDA per year(1), €bn
4.3 3.9 4.0 4.1 0.6 0.3 0.4 0.4 1.9 (1) 1.8 1.7 1.7 1.4 1.3 1.3 1.4
0.2 0.3 0.3 0.2
2.0 2.0 2.0 2.1
2020E 2021 2022 2023 2020E 2021 2022 2023
Networks Non-mainland EGPE Gx & Sx (2)
(1) 2020E like for like EBITDA and Net Income. Rounded figures (2) Gx & Sx EBITDA figure includes Generation and Supply business, Corporate Structure, Services and Adjustments and does not include Non-mainland generation 49 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
4.3 4.3 3.9 3.9 4.1 4.0 4.1
2020E 2021 2022 2023
Plan 2020-22 Plan 2021-23
50 Key Financial Indicators Gross(1) Capex analysis
Gross Capex by business, €bn Gross Capex by nature(2), €bn
7.9 7.9
6.3 6.3 3.8 5.2 Renewables(2) 3.0 Asset development 3.8
Networks 3.0 2.9 2.6 2.0 2.0 Gx(3) 1.7 1.5 Asset 1.7 0.6 management 1.6 0.8 0.8 0.9 0.9 1.0 Supply 0.4 0.3 0.3 Customer (5) 0.9 1.0 0.2 0.2 0.2 0.6 0.4 2021 2022 2023 TOTAL Old Plan 2020-22 2021-23
(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. 51 Key Financial Indicators Net(1) Capex analysis
Net Capex by business(2), €bn Net Capex by nature(2), €bn
7.4 7.4
5.8 5.8 3.8 5.2 3.0 Asset Renewables(3) development 3.8 2.8 2.8 Networks 2.2 1.8 1.7 1.5 1.5 Asset 0.6 Gx(4) management 1.6 1.7 0.7 0.7 0.8 0.9 1.0 Supply 0.4 0.3 Customer (5) 0.2 0.2 0.3 0.2 0.6 0.3 0.4 0.6 2021 2022 2023 TOTAL Old Plan 2020-22 2021-23
(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. 52 Net capacity and output evolution
Total capacity(1, 2), GW Total output(1), TWh
22.6 63 21.5 20.9 60 19.6 56 57 21 7.7 13 14 16 11.5 8.4 9.8 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 CCGT 6 7 7 6 CCGT 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 ▪ Average life of debt: 4.1 years 3.3 ▪ Coverage of 15 months of debt maturities 1.8 2.3 1.3 3.1 0.5 0.1 0.1 0.5 0.3 1.2 0.1 1.4 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
(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% 2020E 2023 Δ
Free customers 82 +14% 80 (mn) 1.4 1.6 CCGT sales 21 20 Regulated cust. - (mn) 0.2 0.2
Retail 59 62 Total customers +6% (mn) 1.7 1.8
(3) 2020E 2023 Churn rate -0.5 PP (%) 10.9% 10.4%
(1) Not included Wholesale business (3) Churn rate B2C and B2B free (2) Rounded figures 55 2020E Spanish power market
Customers Energy sold
Customers (mn) EndesaEnel Energy sold (TWh) EndesaEnel Regulated Free Total market share(1)2 Regulated Free Total market share(1)2 Business 0.3 0.8 1.1 34% Business 1.4 151.1 152.5 30% Residential 10.8 17.6 28.4 34% Residential 26.1 54.7 80.8 32% Total 11.0 18.4 29.4 Total 27.5 205.8 233.3 (1) EndesaEnel Market Share 2 43% 29% EndesaEnel Market Share (1)2 47% 33%
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 36% women involved 50% women involved in processes(1) in recruiting processes recruiting processes
• 100% of people involved • 100% of people involved Climate survey(2) • 86% of people participating • 87% of people participating
• 8,567 people involved (2) Performance appraisal 100% of people involved • 100% of eligible people
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 BoD and Commitees
8% Audit firm Shareholder’s meeting
31% BoD’s composition 62% Board of Directors (13 members)
Executive Proprietary Independent
Audit and Compliance Appointments and Sustainability and Committee remuneration Committee Governance Committee
64 Board of Directors composition
Board of Directors Board of Directors’ diversity
Chairman J. Sánchez-Calero Sustainability & Governance C. Proprietary . J. Bogas CEO Executive By gender By tenure P. Grieco Sustainability & Governance C. Independent F. Starace Vice Chairman 15% 31% A. de Paoli Audit & Compliance C. 46% A. Cammisecra Appointments & Remuneration C.
Audit & Compliance C. 69% 38% M. Roca Sustainability & Governance C.
A. Echevarría Appointments & Remuneration C. < 4 years Over 6 years I. Garralda Appointments & Remuneration C. Male Female 4-6 years
F. de Lacerda Audit & Compliance C.
Audit & Compliance C. P. González Appointments & Remuneration C. Equality gender policies reaching 30% women Audit & Compliance C. already in 2020 E. Bieto Appointments & Remuneration C.
A. Koplowitz Sustainability & Governance C. 65 Short-term variable remuneration(1) 2020 Objective Type of target Macro objective
Range Weight
Net ordinary income Maximum 120% 25% Economic Profitability
Cash and debt FFO Financial Maximum 120% 15% management
Fixed costs Maximum 120% 20% Economic Efficiency
Decarbonization & Digitalization Maximum 120% 20% Business Environmental
Safety in the workplace Maximum 120% 20% ESG Safety
(1) 2020 executive director variable remuneration 66 Long-term variable remuneration(1)
Objective Type of target
(0%) Entry (100%) Over I (150%) Over II (180%)
Endesa’s TSR Endesa’s TSR Endesa’s TSR Endesa’s TSR <100% of from 100 % to from 110 % to TSR(2) > 115% of Market Performance TSR 115% of 110% of TSR TSR TSR 50%(3)
ROACE(4) ≤49,3% 49,3% 50% ≥50,7% Financial Profitability
40%(3)
CO2 emissions reduction (gCO2 ≥171,5 171,5 166,4 ≤162,9 ESG Environmental /KWh) (4)
10%(3)
(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 Cybersecurity(1)
Plan actions 2021-23 targets Plan actions 2021-23 targets
1000 people involved in promotional innovation Execution of cyber 36 cyberexercises actions (workshops, exercises involving executed on trainings, industrial plants/sites industrial plants/sites intrapreneurship) Promoting innovation culture Disseminating the IT security culture and 15 cyber security 3 projects approved Make it changing people’s knowledge sharing Happen! behaviour events held each year in order to reduce risks
(1) Group targets 69 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
Revenues – Purchases and Services + Work performed by the entity and capitalized – Personnel expenses – Other fixed EBITDA (€mn) 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 The higher profit before tax and non-controlling interests net of depreciation and amortisation and other adjustments + Funds from Operations (FFO, €mn) 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 Contacts Isabel Permuy Javier Hernandez Email: [email protected] Francesc Trilla Juan Carlos Jimenez Phone: + 34 91 213 15 03 Sonia Herranz + 34 91 213 90 49 Paloma de Miguel Website: www.endesa.com
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