REG-ENDESA, S.A. 1st Quarter Results
06/05/2021 07:00
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1st Quarter Results
ENDESA, S.A.
and Subsidiaries
Consolidated Management Report
for the three-month period
ended 31 March 2021
This English-language version has been translated from the original issued in
Spanish by the entity itself and under its sole responsibility, and is not
considered official or regulated financial information. In the event of
discrepancy, the Spanish-language version prevails.
Madrid, 5 May 2021
This English-language version has been translated from the original issued in
Spanish by the entity itself and under its sole responsibility, and is not
considered official or regulated financial information. In the event of
discrepancy, the Spanish-language version prevails.
ENDESA, S.A. AND SUBSIDIARIES
CONSOLIDATED MANAGEMENT REPORT FOR
THREE MONTHS ENDED
31 MARCH 2021
Contents
1. Most significant
figures............................................................3
2. Basis of presentation of the Consolidated Financial
Statements...............................3
3. Reference
Scenario...............................................................4
3.1. Performance of the main market
indicators..........................................4
3.2. Electricity and Gas
Market......................................................4
4. Significant events in the
period.......................................................6
4.1. Consolidation
scope..........................................................6
4.2. COVID-19 health
crisis.........................................................6
5. Changes in ENDESA's operations and profit and loss in the first quarter of
2021...................8
5.1. Operating
performance........................................................8
5.2. Analysis of
results...........................................................11
6. Equity and Financial
Analysis.......................................................19
6.1. Net Invested Capital and
Financing...............................................19
6.2. Financial
Management........................................................20
6.3. Capital
Management.........................................................22
6.4. Management of Credit
Ratings..................................................23
6.5. Cash
Flows.................................................................24
6.6.
Investments.................................................................27
7. Segment
Information..............................................................28
7.1. Generation and Supply
Segment.................................................29
7.2. Distribution
Segment.........................................................30
7.3. Structure and Others
Segment..................................................31
8. Regulatory
Framework............................................................31
9. Other
Information................................................................33
9.1. Stock Market
Information.......................................................33
9.2.
Dividends..................................................................34
9.3. Main Risks and
Uncertainties....................................................35
ANNEX I: Alternative Performance Measures
(APMs).......................................36
ANNEX II: Consolidated Financial Statements for the three-month period ended
31 March 2021........39
This English-language version has been translated from the original issued in
Spanish by the entity itself and under its sole responsibility, and is not
considered official or regulated financial information. In the event of
discrepancy, the Spanish-language version prevails.
ENDESA, S.A. AND SUBSIDIARIES
CONSOLIDATED MANAGEMENT REPORT FOR THE
THREE MONTHS ENDED
31 MARCH 2021
1. Most significant figures.
Main figures SDG ((1)) Unit January - March January - March % Var.
2021
2020
Revenue €M 4,993 5,069 (1.5)
Gross operating income (EBITDA) ((2)) €M 1,019 1,476 (31.0)
Net income €M 491 844 (41.8)
Net ordinary income ((3)) €M 491 831 (40.9)
Net Financial Debt ((4)) €M 7,496 ((5)) 6,899 ((6)) 8.7
Cash flows from operating activities €M 583 276 111.2
Gross investments in property, plant and equipment and intangible assets €M 276 268 3.0
Net installed capacity MW 21,651 ((5)) 21,652 ((6)) (0.0)
Net Installed Mainland Renewable Capacity 7 MW 7,718 ((5)) 7,719 ((6)) (0.0)
Net Installed Mainland Renewable Capacity 7 % 45 ((5)) 45 ((6)) -
Additional Installed Renewable Capacity 7 MW 1 ((5)) 391 ((6)) (99.7)
Electricity Generation GWh 14,800 15,143 (2.3)
Generation of Renewable Electricity 7 GWh 4,360 3,737 16.7
Distribution and transmission networks 9 km 315,708 ((5)) 315,365 ((6)) 0.1
Energy distributed ((7)) 9 GWh 32,595 30,557 6.7
End Users ((8)) Thousands 12,311 ((5)) 12,291( (6)) 0.2
Digitalised Customers ((9)) 9 Thousands 12,421 ((5)) 12,389( (6)) 0.3
Net electricity sales ((10)) GWh 20,733 21,521 (3.7)
Number of Customers (Electricity) ((11) (12) ) Thousands 10,308 ((5)) 10,420 ((6)) (1.1)
Deregulated Market Thousands 5,627((5)) 5,690 ((6)) (1.1)
Public and Private Electricity Charging Stations 11 Units 7,514 ((5)) 7,072 ((6)) 6.3
Final headcount No. of employees 9,473 ((5)) 9,591 ((6)) (1.2)
€M = Millions of euros.
(1) Sustainable Development Goals.
(2) Gross Operating Income (EBITDA) = Income - Procurements and Services +
Self-constructed Assets - Personnel Expenses -
Other Fixed Operating Expenses.
(3) Net Ordinary Income = Net Income Attributable to the Parent - Net
Gains/(losses) on Disposals of Non-financial Assets (exceeding Euro 10
million) - Net impairment Losses on Non-financial Assets (exceeding Euro 10
million) - Initial Net Provision for Personnel Expenses for Workforce
Restructuring Plans relating to the Decarbonisation Plan and to Process
Digitalisation - Net Expenses relating to the Public Responsibility Plan for
the COVID-19 Health Crisis.
(4) Net Financial Debt = Non-current Financial Debt + Current Financial Debt
– Cash and Cash Equivalents – Financial Derivatives recognised under
Financial Assets.
(5) At 31 March 2021.
(6) At 31 December 2020.
(7) Energy supplied to customers with our without a contract, ancillary
consumption of generators and output towards other grids (transmission or
distributors).
(8) Customers of distribution companies.
(9) Smart meters activated.
(10) Sales to end customers.
(11) Supply points.
(12) Customers of supply companies.
2. Basis of presentation of the Consolidated Financial Statements.
ENDESA's Consolidated Financial Statements for the three-month period ended 31
March 2021 were prepared in accordance with the International Financial
Reporting Standards ("IFRSs") and the interpretations of the IFRS
Interpretations Committee (“IFRIC”), as adopted by the European Union at
the reporting date pursuant to Regulation (EC) 1606/2002, of 19 July 2002, of
the European Parliament and of the Council and other provisions of the
financial reporting regulatory framework applicable to ENDESA.
The accounting policies, bases of presentation and measurement bases used to
prepare ENDESA's Consolidated Financial Statements for the three-month period
ended 31 March 2021 are the same as those explained in Notes 2 and 3 to the
Consolidated Financial Statements for the year ended 31 December 2020, except
for the new International Financial Reporting Standards (IFRS) and IFRIC
interpretations published in the Official Journal of the European Union and
which were first applied by ENDESA in the Consolidated Financial Statements
for the three-month period ended 31 March 2021, and following the
going-concern principle by applying the cost method, with the exception of the
items that, in accordance with the International Financial Reporting Standards
(IFRS), are measured at fair value. Items in the Consolidated Income Statement
are classified by cost type.
At the date of approval of this Consolidated Management Report, the
modification and reform adopted by the European Union applicable to the years
beginning on 1 January 2021 were as follows:
Standards, amendments and interpretations Mandatory application:
annual periods beginning on
Amendments to IFRS 4 “Insurance Contracts” – Deferral of IFRS 9 1 January 2021
“Financial Instruments”.
Interest Rate Benchmark Reform – Phase 2 - Amendments to IFRS 9 “Financial 1 January 2021
Instruments”, IAS 39 “Financial Instruments: Recognition and
Measurement” and IFRS 7 “Financial Instruments: Disclosure Initiative”,
IFRS 4 “Insurance Contracts” and IFRS 16 “Leases”.
The application of these foregoing amendments did not have a significant
impact on the Consolidated Financial Statements for the three-month period
ended 31 March 2021.
3. Reference Scenario.
3.1. Performance of the main market indicators.
Market indicators January-March January-March % Var.
2021 2020
Arithmetic Average price on the wholesale electricity market (€/MWh) ((1)) 45.2 34.9 29.5
ICE Brent Average price ($/bbl) ((2)) 61.3 50.8 20.7
Average price of the carbon dioxide (CO(2)) emission rights(€/t) ((3)) 37.6 22.8 64.9
Average price of coal (€/MWh)( (4)) 67.3 49.0 37.3
Average price of gas (€/MWh) ((5)) 18.6 9.7 91.8
(1) Source: Operador del Mercado Ibérico de Energía – Polo Español
(OMIE).
(2) Source: ICE: Brent Crude Futures.
(3) Source: ICE: ECX Carbon Financial Futures Daily.
(4) Source: Api2 index.
(5) Source: TTF index.
Exchange and interest rates 31 March 31 March Difference
2021 2020
Average exchange rate (Euro / US Dollar) ((1) (2)) 1.2048 1.1025 0.1023
Closing exchange rate (Euro / US Dollar)( (2)) 1.1731 1.0954 0.0777
Closing exchange rate (Euro / Pound Sterling) ((2)) 0.8520 0.8867 (0.0347)
6-month Euribor (period average) ((1) (3)) (0.52) (0.35) (0.17)
(1) Corresponds to the periods January-March 2021 and 2020, respectively.
(2) Thomson Reuters.
(3) Bloomberg.
Percentage (%)
Inflation ((1)) 31 March 31 March
2021 2020
Spain 1.3 0.1
(1) Source: INE (Spanish Official Statistics Institute). Estimated annual
inflation.
3.2. Electricity and Gas Market.
Electricity.
In the first quarter of 2021, electricity demand trends were as follows:
* Cumulative mainland electricity demand rose by 0.6% year-on-year (-0.4%
adjusted for working days and temperature).
* The accumulated electricity demand in non-mainland Territories (“TNP”),
affected to a large extent by the COVID-19 healthcare crisis closed the first
quarter of 2021 with a 1.7% reduction in the Balearic Islands and a 13.2%
decrease in the Canary Islands compared with the same period of the previous
year (-3.7% and -13.3% respectively, adjusted for the effect of working days
and temperature).
The changes in electricity demand at 31 March 2021 and 2020 are as follows:
Percentage (%)
Trends in electricity demand ((1)) January - March January - March
2021
2020
Mainland ((2)) 0.6 (3.2)
Non-mainland Territories (“TNP”) ((3)) (8.3) (2.7)
(1) Source: Red Eléctrica de España, S.A. (REE). At power plant busbars.
(2) Adjusted for working days and temperature: -0.4% from January-March 2021
and -2.8% from January-March 2020.
(3) Adjusted for working days and temperature: -9.5% from January-March 2021
and -4.4% from January-March 2020.
At 31 March 2021 and 2020, the changes in mainland electricity demand in the
territory in which ENDESA distributes electricity, by Activity segments, is as
follows:
Percentage (%)
Changes in mainland electricity demand: ENDESA Area( (1)) January - March January - March
2021
2020
ENDESA ((2)) 0.4 (2.7)
Industrial (2.3) (3.9)
Services (2.2) (2.8)
Residential 5.7 (1.4)
(1) Source: Prepared internally.
(2) Adjusted for working days and temperature: +0.1% from January-March 2021
and -3.9% from January-March 2020.
The first quarter of 2021 saw higher prices, with the arithmetic average price
in the electricity wholesale market standing at Euro 45.2/MWh (+29.5%), mainly
due to increased demand and fluctuating raw material prices.
The contribution of renewable energies to total mainland production in the
first quarter of 2021 was 56.3% (59.7% in the first quarter of 2020).
At 31 March 2021, ENDESA held the following electricity market shares:
Percentage (%)
Market share (electricity) ((1)) 31 March 31 December
2021
2020
Mainland generation ((2)) 18.8 18.0
Distribution 42.0 42.9
Supply 30.6 32.4
(1) Source: Prepared internally.
(2) Includes renewable energies.
Gas.
In the first quarter of 2021, conventional gas demand rose by 1.9% year on
year, and at 31 March 2021 ENDESA had secured a market share of 15.2% in gas
sales to customers in the deregulated market.
The changes in gas demand at 31 March 2021 and 2020 are as follows:
Percentage (%)
Trend in demand for gas ((1)) January - March January - March
2021
2020
Domestic Market (2.3) (4.9)
Domestic Conventional 1.9 (1.3)
Electricity Sector (22.9) (23.6)
(1) Source: Enagás, S.A.
At 31 March 2021, ENDESA held the following gas market share:
Percentage (%)
Market share (gas) ((1)) 31 March 31 December
2021
2020
Deregulated market 15.2 14.3
(1) Source: Prepared internally.
4. Significant events in the period.
4.1. Consolidation scope
In the first quarter of 2021, the following transactions were carried out:
Companies Transaction Date Activity Stake Stake
at 31 March at 31 December
2021 (%) 2020 (%)
Control Ownership Control Ownership
Arena Power Solar 11, S.L.U. Acquisition 25 February 2021 Photovoltaic 100.00 100.00 - -
Arena Power Solar 12, S.L.U. Acquisition 25 February 2021 Photovoltaic 100.00 100.00 - -
Arena Power Solar 13, S.L.U. Acquisition 25 February 2021 Photovoltaic 100.00 100.00 - -
Savanna Power Solar 4, S.L.U. Acquisition 25 February 2021 Photovoltaic 100.00 100.00 - -
Savanna Power Solar 5, S.L.U. Acquisition 25 February 2021 Photovoltaic 100.00 100.00 - -
Savanna Power Solar 6, S.L.U. Acquisition 25 February 2021 Photovoltaic 100.00 100.00 - -
Arena Power Solar 33, S.L.U. Acquisition 15 March 2021 Photovoltaic 100.00 100.00 - -
Arena Power Solar 34, S.L.U. Acquisition 15 March 2021 Photovoltaic 100.00 100.00 - -
Arena Power Solar 35, S.L.U. Acquisition 15 March 2021 Photovoltaic 100.00 100.00 - -
Savanna Power Solar 9, S.L.U. Acquisition 15 March 2021 Photovoltaic 100.00 100.00 - -
Savanna Power Solar 10, S.L.U. Acquisition 15 March 2021 Photovoltaic 100.00 100.00 - -
Energía Eólica Galerna, S.L.U. Acquisition 26 March 2021 Wind 100.00 100.00 - -
Energía Eólica Gregal, S.L.U. Acquisition 26 March 2021 Wind 100.00 100.00 - -
Corporate acquisitions in the renewable energy business.
During the first quarter of 2021, all corporate acquisitions formalised
correspond to the renewables business.
The total transaction price was Euro 46 million, of which Euro 26 million were
still payable at 31 March 2021, subject to compliance with certain contractual
stipulations (see section 6.5 Cash Flows of this Consolidated Management
Report).
The acquisition of these companies led to an accounting entry under
“Intangible assets” in the consolidated statement of financial position of
Euro 46 million, virtually relating in full to the value of the licences for
the development of wind farms and photovoltaic plants.
The companies acquired are currently applying for permits and licences to
carry out their projects and/or are in the construction phase. Therefore,
construction work has not yet started on the renewable energies facilities,
and no ordinary revenue has been generated since the acquisition date.
ENDESA's objective with this acquisition of wind farms and photovoltaic plants
under development was to reinforce its presence in the Iberian generation
market by extending the renewable asset portfolio in its production "mix".
4.2. COVID-19 health crisis.
Given the complexity of the current situation, ENDESA is constantly monitoring
the evolution of the COVID-19 pandemic, together with the changes in
macroeconomic, financial and trade variables, as well as the regulatory
measures in force, to update the estimate of the possible effects on the
Consolidated Financial Statements, in line with the recommendations of the
European Securities and Markets Authority (ESMA) and the Spanish Securities
Market Commission (CNMV).
In accordance with the foregoing, the information relating to the main impacts
for ENDESA related to the COVID-19 health crisis are described in the
following notes to the Consolidated Financial Statements for the year ended 31
December 2020 and sections of this consolidated management report at 31 March
2021:
Matters Reference ((1)) Sections Contents
Going concern 2.1 - Impact of the health crisis on the activities performed by the Group
companies.
Impairment test 3e.5 - Stressed sensitivity analysis in view of the current uncertainty.
Demand - 3.2 Negative impact of the pandemic on electricity and gas demand over the coming
months, which may affect electricity and natural gas supply contracts or
associated coverage over the coming months.
Regulatory Framework 4 - Declaration of the State of Alarm and regulatory measures approved.
Leases 6.1.1 and 6.1.2 6.2 Effect of the health crisis on the lease arrangements signed.
Investment 6.2 6.6 Impact of the pandemic on the implementation of the investment plan.
Insurance 6.4, 7.1 and 11.3 - Effect of the pandemic on the insurance contracts arranged.
Inventories 11.2 - Effect of the economic context on the contracts with "take or pay" clauses.
Credit risk 12.1, 19.5 and 28 5.2.2 Impact of the health crisis and containment measures adopted to determine the
expected loss for impairment.
Provisions 16.1, 16.2.1 and 16.2.2 - Actuarial assumptions used.
Financial debt 17.2.2 6.2 Financial debt refinancing processes as a consequence of the health crisis.
Liquidity risk 19.4 6.2 Financial transactions formalised to reinforce the liquidity position and
ensure the continuity of business activities in the current context.
Classification of financial assets 18.1 - Modification of the business model and of the contractual characteristics of
the cash flows from financial assets, and reclassification among the
categories of such assets.
Derivatives and hedge transactions 18.3 5.2.1 Compliance with the criteria established by the regulations to apply hedges.
Fair value measurement 18.6.1 - Changes in the measurement bases used to determine the fair value.
Concentration risk 19.6 - Effect of the pandemic on the concentration risk.
Income tax 21.1 and 31 5.2.6 Recovery of deferred tax assets and impact on the effective income tax rate
due to legislative changes adopted to mitigate the effects of the health
crisis.
Public Responsibility Plan 27, 32.1 and 33.2.1 - Accrual and payment of expenses related with the COVID-19 health crisis.
COVID-19 health crisis 38 - Measures adopted by the Company and economic-financial impacts of COVID-19.
(1) Notes to the Consolidated Financial Statements for the year ended 31
December 2020.
Overall, during the first quarter of 2021, the effects of the health crisis
did not have a significant impact on EBITDA or EBIT.
5. Changes in ENDESA's operations and profit and loss in the first quarter of
2021.
5.1. Operating performance.
Operating figures SDG ((1)) Unit January-March January-March % Var.
2021 2020
Electricity Generation GWh 14,800 15,143 (2.3)
Generation of Renewable Electricity 7 GWh 4,360 3,737 16.7
Gross installed capacity MW 22,464 ((2)) 22,465( (3)) (0.0)
Net installed capacity MW 21,651 ((2)) 21,652 ((3)) (0.0)
Net Installed Mainland Renewable Capacity 7 MW 7,718 ((2)) 7,719 ((3)) (0.0)
Net Installed Mainland Renewable Capacity 7 % 45 ((2)) 45 ((3)) -
Additional Installed Renewable Capacity 7 MW 1 ((2)) 391 ((3)) (99.7)
Energy distributed ((4)) 9 GWh 32,595 30,557 6.7
Digitalised Customers ((5)) 9 Thousands 12,421 ((2)) 12,389 ((3)) 0.3
Distribution and transmission networks 9 km 315,708 ((2)) 315,365 ((3)) 0.1
End Users ((6)) Thousands 12,311 ((2)) 12,291( (3)) 0.2
List of Digitalised Customers ((7)) (%) 100.0 ((2)) 100.8 ((3)) -
Gross electricity sales ((8)) GWh 23,189 23,860 (2.8)
Net electricity sales( (9)) GWh 20,733 21,521 (3.7)
Gas sales ((10)) GWh 22,491 20,903 7.6
Number of Customers (Electricity)( (11) (12) ) Thousands 10,308 ((2)) 10,420( (3)) (1.1)
Deregulated Market Thousands 5,627 ((2)) 5,690( (3)) (1.1)
Public and Private Electricity Charging Stations 11 Units 7,514 ((2)) 7,072 ((3)) 6.3
Final headcount No. of employees 9,473 ((2)) 9,591 ((3)) (1.2)
Average headcount No. of employees 9,448 9,817( ) (3.8)
(1) Sustainable Development Goals.
(2) At 31 March 2021.
(3) At 31 December 2020.
(4) Energy supplied to customers, with or without a contract, ancillary
consumption of generators and output towards other grids (transmission or
distribution).
(5) Activated smart meters.
(6) Customers of distribution companies.
(7) Number of digitalised customers / End users (%).
(8) At power plant busbars.
(9) Sales to end customers.
(10) Excluding own generation consumption.
(11) Supply points.
(12) Customers of supply companies.
Electricity Generation.
ENDESA's electricity production during the first quarter of 2021 was 14,800
GWh, 2.3% lower than the same period of the previous year, as detailed below:
GWh
Electricity Generation ((1)) January - March January - March % Var.
2021
2020
Mainland 12,351 12,374 (0.2)
Renewable energy plants 4,360 3,737 16.7
Hydroelectric 2,356 2,249 4.8
Wind( (2)) 1,855 1,398 32.7
Photovoltaic ((3)) 149 90 65.6
Nuclear power 6,909 7,201 (4.1)
Coal 214 352 (39.2)
Combined cycle (CCGT)( ) 868 1,084 (19.9)
Non-Mainland Territories (“TNP”) 2,449 2,769 (11.6)
Fuel-gas 966 1,153 (16.2)
Combined cycle (CCGT)( ) 1,483 1,616 (8.2)
TOTAL 14,800 15,143 (2.3)
(1) At power plant busbars.
(2) The period from January-March 2021 includes 240 GWh corresponding to
Non-mainland Territories (“TNP”) (26 GWh in the period from January-March
2020).
(3) The period from January-March 2021 includes 7 GWh corresponding to
Non-mainland Territories (“TNP”) (0 GWh in the period from January-March
2020).
Non-emitting renewable and nuclear technologies accounted for 91.1% of
ENDESA's mainland generation mix in the first quarter of 2021, compared with
88.4% in the first quarter of 2020, with 90.8% for the rest of the sector (84%
in the first quarter of 2020).
Gross and net installed capacity
ENDESA's gross and net installed capacity during the first quarter of 2021 was
22,464 MW and 21,651 MW, respectively, as detailed below:
Gross installed capacity 31 March 2021 31 December 2020 % Var.
MW Percentage (%) MW Percentage (%)
Mainland 17,728 78.9 17,729 78.9 (0.0)
Renewables( (1) (2)) 7,823 34.8 7,825 34.8 (0.0)
Hydroelectric 4,791 21.3 4,793 21.3 (0.0)
Wind( (3)) 2,422 10.8 2,423 10.8 (0.0)
Photovoltaic ((4)) 610 2.7 609 2.7 0.2
Nuclear power 3,453 15.4 3,453 15.4 -
Coal 2,628 11.7 2,627 11.7 0.0
Combined cycle (CCGT)( ) 3,824 17.0 3,824 17.0 -
Non-Mainland Territories (“TNP”) 4,736 21.1 4,736 21.1 -
Coal 260 1.2 260 1.2 -
Fuel-gas 2,619 11.7 2,619 11.7 -
Combined cycle (CCGT)( ) 1,857 8.2 1,857 8.3 -
TOTAL 22,464 100.0 22,465 100.0 0.0
(1) At 31 March 2021 and 31 December 2020, additional capacity was 1 MW and
391 MW, respectively.
(2) At 31 March 2021, renewable energy mainland gross installed capacity
accounted for 44% of the total mainland gross installed capacity (44% at 31
December 2020).
(3) At 31 March 2021 and 31 December 2020, it included 40 MW relating to
Non-mainland Territories (“TNP”).
(4) At 31 March 2021 and 31 December 2020, it included 22 MW relating to
Non-mainland Territories (“TNP”).
Net installed capacity 31 March 2021 31 December 2020 % Var.
MW Percentage (%) MW Percentage (%)
Mainland 17,387 80.3 17,388 80.3 (0.0)
Renewables( (1) (2)) 7,780 35.9 7,781 35.9 (0.0)
Hydroelectric 4,748 21.9 4,749 21.9 (0.0)
Wind( (3)) 2,422 11.2 2,423 11.2 (0.0)
Photovoltaic ((4)) 610 2.8 609 2.8 0.2
Nuclear power 3,328 15.4 3,328 15.4 -
Coal 2,523 11.7 2,523 11.7 -
Combined cycle (CCGT)( ) 3,756 17.3 3,756 17.3 -
Non-Mainland Territories (“TNP”) 4,264 19.7 4,264 19.7 -
Coal 241 1.1 241 1.1 -
Fuel-gas 2,334 10.8 2,334 10.8 -
Combined cycle (CCGT)( ) 1,689 7.8 1,689 7.8 -
TOTAL 21,651 100.0 21,652 100.0 (0.0)
(1) At 31 March 2021 and 31 December 2020, additional capacity was 1 MW and
391 MW, respectively.
(2) At 31 March 2021, renewable energy mainland net installed capacity
accounted for 45% of the total mainland net installed capacity (45% at 31
December 2020).
(3) At 31 March 2021 and 31 December 2020, it included 40 MW relating to
Non-mainland Territories (“TNP”).
(4) At 31 March 2021 and 31 December 2020, it included 22 MW relating to
Non-mainland Territories (“TNP”).
Electricity and gas sales.
Electricity.
At 31 March 2021, ENDESA had 10,307,508 electricity customers, down 1.1% on 31
December 2020, as shown in the following breakdown:
Thousands
Number of customers (Electricity) ((1) (2)) 31 March 31 December % Var.
2021
2020
Regulated market 4,681 4,730 (1.0)
Mainland Spain 3,978 4,020 (1.0)
Non-mainland Territories (“TNP”) 703 710 (1.0)
Deregulated market 5,627 5,690 (1.1)
Mainland Spain 4,371 4,444 (1.6)
Non-mainland Territories (“TNP”) 834 838 (0.5)
Outside Spain 422 408 3.4
TOTAL 10,308 10,420 (1.1)
Revenue / Supply points( (3)) 1.2 1.1 -
(1) Supply points.
(2) Customers of supply companies.
(3) Relationship between revenue from annualised electricity sales and the
number of electricity supply points (Euro Thousands / Supply points).
ENDESA's gross and net sales to these customers in the first quarter of 2021
totalled 23,189 GWh and 20,733 GWh, down 2.8% and 3.7%, respectively, with
respect to the first quarter of 2020, as follows:
GWh
Gross electricity sales ((1)) January - March January - March % Var.
2021
2020
Regulated Price 3,658 3,450 6.0
Deregulated market 19,531 20,410 (4.3)
Spanish 16,799 17,643 (4.8)
Outside Spain 2,732 2,767 (1.3)
TOTAL 23,189 23,860 (2.8)
(1) At power plant busbars.
GWh
Net electricity sales ((1)) January - March January - March % Var.
2021
2020
Regulated Price 3,058 2,913 5.0
Deregulated market 17,675 18,608 (5.0)
Spanish 15,115 15,989 (5.5)
Outside Spain 2,560 2,619 (2.3)
TOTAL 20,733 21,521 (3.7)
(1) Sales to end customers.
Gas.
At 31 March 2021, ENDESA had 1,659,441 gas customers, down 0.8% on 31 December
2020, as shown in the following breakdown:
Thousands
Number of customers (gas) ((1)) 31 March 31 December % Var.
2021
2020
Regulated market 234 233 0.4
Mainland Spain 210 209 0.5
Non-mainland Territories (“TNP”) 24 24 -
Deregulated market 1,425 1,440 (1.0)
Mainland Spain 1,234 1,252 (1.4)
Non-mainland Territories (“TNP”) 71 71 -
Outside Spain 120 117 2.6
TOTAL 1,659 1,673 (0.8)
Revenue / Supply points( (2)) 1.6 1.1 -
(1) Supply points.
(2) Relationship between revenue from annualised gas sales and the number of
gas supply points (Thousands of euros / Supply points).
In the first quarter of 2021, ENDESA sold 22,491 GWh to customers in the
natural gas market, up 7.6% on the first quarter of 2020.
GWh
Gas sales January - March January - March % Var.
2021
2020
Deregulated market 12,570 12,219 2.9
Regulated market 569 538 5.8
International market 5,721 5,417 5.6
Wholesale business 3,631 2,729 33.1
TOTAL( (1)) 22,491 20,903 7.6
(1) Excluding own generation consumption.
Distribution of Energy.
Supply Quality Measures January - March January - March % Var.
2021
2020
Energy Distributed (GWh)( (1)) 32,595 30,557 6.7
Energy Losses (%)( (2)) 8.4 8.2 -
Installed Capacity Equivalent Interruption Time (Average) – ICEIT( 15.8 13.0 21.5
)(Minutes)( (3))
Duration of Interruptions in the Distribution Grid – SAIDI (Minutes) ((4)) 79.5 75.6 5.2
Number of Interruptions in the Distribution Grid – SAIFI( (4)) 1.5 1.4 7.1
(1) Energy supplied to customers, with or without contract, auxiliary
consumption of generators and outflows to other grids (transmission or
distributors).
(2) Energy inputs to the distribution grid (or energy injected to the
distribution grid) less distributed energy divided by energy inputs to the
distributor (or energy injected to the distribution grid).
(3) Spanish Regulatory Criteria. Includes Own TIEPI, Programmed and Transport
data.
(4) Source: Prepared internally. Data corresponding to the last 12 months.
Workforce.
The tables below show ENDESA's final average headcounts:
Number of employees
Final headcount % Var.
31 March 2021 31
Dec
emb
er
202
0
Male Female Total Male Female Total
Generation and supply 3,547 1,039 4,586 3,596 1,041 4,637 (1.1)
Distribution 2,480 447 2,927 2,503 440 2,943 (0.5)
Structure and others ((1)) 1,116 844 1,960 1,136 875 2,011 (2.5)
TOTAL 7,143 2,330 9,473 7,235 2,356 9,591 (1.2)
(1) Structure and Services.
Number of employees
Average headcount % Var.
January-March 2021 Jan
uar
y
-Ma
rch
202
0
Male Female Total Male Female Total
Generation and supply 3,543 1,024 4,567 4,109 1,111 5,220 (12.5)
Distribution 2,485 438 2,923 2,500 432 2,932 (0.3)
Structure and others ((1)) 1,113 845 1,958 885 780 1,665 17.6
TOTAL 7,141 2,307 9,448 7,494 2,323 9,817 (3.8)
(1) Structure and Services.
5.2. Analysis of results.
ENDESA reported net income of Euro 491 million in the first quarter of 2021, a
decrease of 41.8% compared to the Euro 844 million reported in the same period
of the previous year.
To analyse its performance, it is necessary to take into account the following
effects:
* The net income for the period from January-March 2020 included a net positive
impact of Euro 267 million due to the entry into force of the “V ENDESA
Framework Collective Bargaining Agreement” and the recognition of certain
workforce restructuring provisions relating to the “Agreement on Voluntary
Measures to Suspend or Extinguish Labour Contracts” (see section 5.2.2.
Operating expenses of this consolidated management report).
* The net income for the period January-March 2021 includes a positive net
impact of Euro 194 million corresponding to ENDESA's right to be compensated
for the reduction in its remuneration as a generating company in the amount of
the internalization of the carbon dioxide (CO(2)) emission rights assigned
free of charge under the National Emission Rights Allocation Plan (NAP), which
it is not legally obliged to bear (see Sections 5.2.1.)
Net ordinary income for the period January-March 2021 amounted to Euro 491
million, a decrease of 40.9% compared to the same period of the previous year.
The table below presents the detail of the most relevant figures in ENDESA's
Consolidated Income Statement in the first quarter of 2021 and its variation
compared with the same period in the previous year:
Millions of Euros
Most significant figures
January - March January - March % Var.
2021
2020
Revenue 4,993 5,069 (1.5)
Procurements and Services (3,461) (3,455) 0.2
Contribution Margin ((1)) 1,532 1,614 (5.1)
Self-constructed assets 41 47 (12.8)
Personnel expenses (235) 144 (263.2)
Other fixed operating expenses (319) (329) (3.0)
Gross Operating Income (EBITDA) ((2)) 1,019 1,476 (31.0)
Depreciation and amortisation, and impairment losses (404) (358) 12.8
Operating Income (EBIT) ((3)) 615 1,118 (45.0)
Net Financial Profit/(loss) ((4)) 39 (10) (490.0)
Profit before tax 653 1,106 (41.0)
Net income ((5)) 491 844 (41.8)
Net ordinary income ((6)) 491 831 (40.9)
(1) Contribution Margin = Revenue - Procurements and Services.
(2) Gross Operating Income (EBITDA) = Revenue - Procurements and Services +
Self-constructed assets - Personnel Expenses - Other Fixed Operating Expenses.
(3) Operating Income (EBIT) = Gross Operating Income (EBITDA) - Amortisation
and Impairment Losses.
(4) Net Financial Profit/(loss) = Financial Income - Financial Expense + Net
Exchange Differences.
(5) Net Income = Net Income Attributable to the Parent.
(6) Net Ordinary Income = Net Income Attributable to the Parent - Net Income
on Sales of Non-Financial Assets (exceeding Euro 10 million) - Net Impairment
Losses on Non-Financial Assets (exceeding Euro 10 million) - Initial Net
Provision for Personnel Expenses for Workforce Restructuring Plans relating to
the Decarbonisation Plan and to Process Digitalisation - Net Expenses relating
to the Public Responsibility Plan for the COVID-19 Health Crisis.
Gross operating income (EBITDA) for the first quarter of 2021 stood at Euro
1,019 million (-31.0%).
Operating income (EBIT) in the first quarter of 2021 dropped by 45% compared
to the same period in the previous year, standing at Euro 615 million.
5.2.1. Revenue.
In the first quarter of 2021, revenue stood at Euro 4,993 million, down Euro
76 million (-1.5%) on those obtained in the first quarter in 2020.
Below are details of the revenue for the first quarter of 2021 and its
variations with respect to the same period last year:
Millions of Euros
Revenue
January - March January - March Difference % Var.
2021
2020
Sales 4,658 4,580 78 1.7
Other operating income 335 489 (154) (31.5)
TOTAL 4,993 5,069 (76) (1.5)
Sales
Below are details of ENDESA's sales for the first quarter of 2021 and of their
variations with respect to the same period of the previous year:
Millions of Euros
Sales
January - March January - March Difference % Var.
2021
2020
Electricity sales 3,325 3,255 70 2.2
Sales to the deregulated market 2,153 2,239 (86) (3.8)
Sales to the Spanish deregulated market 1,868 1,966 (98) (5.0)
Sales to customers in deregulated markets outside Spain 285 273 12 4.4
Sales at regulated prices 543 466 77 16.5
Wholesale market sales 337 138 199 144.2
Compensation from Non-mainland Territories (“TNP”) 259 371 (112) (30.2)
Remuneration for investment in Renewable Energies 27 35 (8) (22.9)
Other electricity sales 6 6 - -
Gas sales 665 632 33 5.2
Sales to the deregulated market 634 606 28 4.6
Sales at regulated prices 31 26 5 19.2
Regulated revenue from electricity distribution 510 524 (14) (2.7)
Other sales and services rendered 158 169 (11) (6.5)
TOTAL 4,658 4,580 78 1.7
Electricity sales to deregulated market customers.
In the first quarter of 2021, sales on the deregulated market amounted to Euro
2,153 million (-3.8%), in accordance with the following details:
* Sales on the Spanish deregulated market were Euro 1,868 million, down Euro 98
million (-5.0%) with respect to the same period of the previous year due,
mainly, to the decrease in the physical units sold.
* Revenue from sales to customers on deregulated markets outside of Spain
amounted to Euro 285 million, up Euro 12 million (+4.4%) with respect to the
same period of the previous year due, mainly, to the changes in the unitary
price.
Electricity sales at a regulated price.
These sales generated an income of Euro 543 million, up 16.5% on the first
quarter of 2020 as a result mainly of the increased price.
Sales of electricity in the wholesale market.
Revenues from sales to the wholesale market in the first quarter of 2021
amounted to Euro 337 million and include, in the amount of Euro 188 million,
the recognition by ENDESA of the right to be indemnified in the amount of the
internalization of the carbon dioxide (CO(2)) emission rights allocated free
of charge by the National Emission Rights Allocation Plan (NAP), which it has
no legal duty to bear (see Section 5.2. Analysis of results of this
Consolidated Management Report).
Gas sales.
Revenue from gas sales in the first quarter of 2021 amounted to Euro 665
million, up Euro 33 million (+5.2%) on those of the first quarter of 2020, as
follows:
* Gas sales on the deregulated market were Euro 634 million, up Euro 28 million
(+4.6%) on those of the first quarter of 2020, due mainly to the increase in
the physical units sold.
* Income from gas sales to customers at a regulated price amounted to Euro 31
million, up Euro 5 million (19.2%) on the same period in the previous year
due, mainly, to the increase in the physical units sold.
Compensation from Non-mainland Territories (“TNP”).
In the first quarter of 2021, the compensation for cost overruns from the
generation of Non-mainland Territories (“TNP”), amounted to Euro 259
million, which meant a decrease of Euro 112 million (-30.2%) on the same
period of the previous year, mainly due to the lower production in the period,
due to the decreased demand and the changes in commodity prices (see section
3.1. Changes in the main market indicators in this consolidated management
report).
Electricity distribution.
During the first quarter of 2021, ENDESA distributed 32,595 GWh on the Spanish
market, 6.7% more than in the first quarter of 2020.
Regulated revenue from the distribution activity in the first quarter of 2021
amounted to Euro 510 million, representing a reduction of Euro 14 million
(-2.7%) with respect to the same period in the previous year, due mainly, to
the new value of the financial remuneration rate applicable as from 1 January
2021.
Other operating income
The table below presents the detail of other operating income in the first
quarter of 2021 and its variation compared with the same period in the
previous year:
Millions of Euros
Other operating income
January - March January - March Difference % Var.
2021
2020
Changes in energy stock derivatives 258 409 (151) (36.9)
Grants released to income ((1)) 7 6 1 16.7
Recognition of liabilities from contracts with customers in profit or loss 41 41 0 0.0
Trading rights 10 12 (2) (16.7)
Third party compensation 2 3 (1) (33.3)
Other 17 18 (1) (5.6)
TOTAL 335 489 (154) (31.5)
(1) In the period January-March 2021, Euro 3 million were included
corresponding to Grants related to assets and Euro 4 million corresponding to
Grants related to operations (Euro 2 million and Euro 4 million, respectively,
in the period from January-March 2020).
In the first quarter of 2021, the amount of Other operating income stood at
Euro 335 million, representing a decrease of Euro 154 million (-31.5%) with
respect to the amount recognised in the first quarter of 2020, as a result
mainly of the decrease of Euro 151 million (-36.9%) in the income for the
measurement and settlement of derivatives from energy stocks due mainly to the
changes in the measurement and settlement of gas derivatives considered,
together with the decrease of Euro 103 million (-28.1%) in the expenses in
this regard, recognised under “Other Variable Procurements and Services”
in the Consolidated Income Statement (see section 5.2.2. Operating Expenses of
this Consolidated Management Report).
The derivatives and hedging transactions performed by ENDESA relate mainly to
transactions arranged to hedge foreign currency risk or commodity price risk
(electricity, fuel and carbon dioxide (CO(2)) emission rights, the purpose of
which is to eliminate or significantly reduce these risks in the underlying
hedged transactions. In the current context, ENDESA has reviewed that the
criteria established by the regulations to apply hedge accounting continue to
be complied with.
5.2.2. Operating expenses.
Operating expenses totalled Euro 4,378 million in the January-March 2021
period, 10.8% more than in the same period the previous year.
The table below presents the detail of operating expenses in the first quarter
of 2021 and its variation compared with the same period in the previous year:
Millions of Euros
Operating expenses
January - March January - March Difference % Var.
2021
2020
Procurements and services 3,461 3,455 6 0.2
Energy Purchases 1,144 1,040 104 10.0
Fuel Consumption 273 352 (79) (22.4)
Transport Expenses 1,347 1,312 35 2.7
Other Variable Procurements and Services 697 751 (54) (7.2)
Self-constructed Assets (41) (47) 6 (12.8)
Personnel expenses 235 (144) 379 (263.2)
Other Fixed Operating Expenses 319 329 (10) (3.0)
Depreciation and Amortisation and Impairment Losses 404 358 46 12.8
TOTAL 4,378 3,951 427 10.8
Procurements and services (variable costs).
The costs for procurements and services (variable costs) of the first quarter
of 2021 amounted to Euro 3,461 million with an increase of 0.2% with respect
to the same period of the preceding year.
The performance regarding these costs for the first quarter 2021 was:
* Energy Purchases rose by Euro 104 million (+10.0%) to Euro 1,144 million,
mainly as a result of the increased arithmetic average price in the wholesale
electricity market, which stood at Euro 45.2/MWh (+29.5%).
* Fuel consumption stood at Euro 273 million, with a decrease of Euro 79 million
(-22.4%) with respect to the same period last year, due to reduced thermal
production in the period (-16.0%), mainly in Non-mainland Territories
(“TNP”).
* “Other variable procurements and services” in the Consolidated Income
Statement stood at Euro 697 million, down by Euro 54 million (-7.2%) on the
same period last year, as follows:
Millions of Euros
Other Variable Procurements and Services
January - March January - March Difference % Var.
2021
2020
Changes in energy stock derivatives 264 367 (103) (28.1)
CO(2) emission rights 60 53 7 13.2
Tax on electricity production 72 68 4 5.9
Treatment of radioactive waste 57 59 (2) (3.4)
Street lighting / works licences 48 45 3 6.7
Nuclear charges and taxes 31 32 (1) (3.1)
Social Bonus 14 12 2 16.7
Catalonia Environmental Tax 29 - 29 N/A
Hydraulic Charge 15 11 4 36.4
Other 107 104 3 2.9
TOTAL 697 751 (54) (7.2)
This amount includes:
* The reduction of Euro 103 million (-28.1%) with respect to the amount
recognised in the first quarter of 2020 of the expenses relating to the
measurement and settlement of energy derivatives due mainly to the changes in
the measurement and settlement of gas derivatives which are considered jointly
with the decrease of Euro 151 million (-36.9%) in the revenue under this item
recognised in “Other operating income” in the Consolidated Income
Statement (see section 5.2.1. Revenue of this Consolidated Management Report).
* The expense of Euro 29 million in the first quarter of 2021, relating to the
tax on facilities affecting the environment in the Catalonia Autonomous
Community as a result of the publication of Law 5/2020, of 29 April 2020, of
the Catalonia Regional Government.
Fixed Operating Expenses
Below are details of the Fixed Operating Expenses in the first quarter of 2021
and of their variations with respect to the same period last year:
Millions of Euros
Fixed Operating Expenses
January - March January - March Difference % Var.
2021 ((1))
2020
Self-constructed Assets (41) (47) 6 (12.8)
Personnel Expenses 235 (144) 379 (263.2)
Other Fixed Operating Expenses 319 329 (10) (3.0)
TOTAL 513 138 375 271.7
In the first quarter of 2021, the Fixed Operating Expenses amounted to Euro
513 million, which represents an increase of Euro 375 million (+271.7%), in
comparison with the first quarter of 2020, mainly as a result of the following
aspects:
* The implementation in the period January-March 2020 of the “V ENDESA
Framework Collective Bargaining Agreement” and the recognition of certain
workforce restructuring provisions relating to the “Agreement on Voluntary
Measures to Suspend or Extinguish Labour Contracts”, had a positive effect
on the Income Statement in the amount of Euro 356 million (Euro 267 million,
net of the tax effect) (see section 5.2. Analysis of results in this
Consolidated Management Report).
* Changes in the update of provisions for the workforce restructuring plans in
force led to an impact of Euro 4 million in the Consolidated Income Statement
for January-March 2021 (Euro 43 million, positive, in the period from
January-March 2020).
* The period provision for compensation and other risks of a tax and employment
nature amounting to Euro 1 million in the first quarter of 2021 (Euro 14
million in the first quarter of 2020).
Without taking into account the effects described in the previous paragraphs,
the Fixed Operating Expenses in the first quarter of 2021 would have fallen by
Euro 15 million (-2.9%) on the same period last year in line with the
Company's fixed cost containment policy.
Depreciation and Amortisation and Impairment Losses
The table below presents the detail of Depreciation and Amortisation and
Impairment Losses at ENDESA sales in the first quarter of 2021 and its
variation compared with the same period in the previous year:
Millions of Euros
Depreciation and Amortisation and Impairment Losses
January - March January - March Difference % Var.
2021
2020
DEPRECIATION AND AMORTISATION 372 352 20 5.7
Provision for the depreciation of property, plant and equipment 317 298 19 6.4
Provision for amortisation of intangible assets 55 54 1 1.9
IMPAIRMENT LOSSES 32 6 26 433.3
Non-financial assets - (18) 18 (100.0)
Provision for impairment losses on property, plant and equipment and - (16) 16 (100.0)
investment property
Provision for impairment losses on intangible assets - (2) 2 (100.0)
Financial assets 32 24 8 33.3
Provision for impairment losses on receivables from contracts with customers 32 22 10 45.5
Provision for impairment losses on other financial assets - 2 (2) (100.0)
TOTAL 404 358 46 12.8
Depreciation and amortisation and impairment losses for the first quarter of
2021 amounted to Euro 404 million, up Euro 46 million (+12.8%) with respect to
the same period last year, as a result mainly of the rise in net impairment
losses for Euro 26 million.
In the January-March 2021 period, impairment losses amounted to Euro 32
million, an increase of Euro 26 million compared with the same period of the
previous year. This variation includes an increase of Euro 10 million
corresponding to impairment losses from customer contracts partially related
to the economic situation caused by COVID-19.
5.2.3. Net Financial Profit/(loss)
Net Financial Profit/(loss) in the first quarter of 2021 and in the first
quarter of 2020 amounted to Euro +39 million and to Euro -10 million,
respectively.
The table below presents the detail of net financial profit/(loss) in the
first quarter 2021 and its variation compared with the same period in the
previous year:
Millions of Euros
Net Financial Profit/(loss) ((1))
January - March January - March Difference % Var.
2021
2020
Net Financial Expense( (3)) 41 (8) 49 (612.5)
Financial income 83 31 52 167.7
Financial expense (42) (39) (3) 7.7
Net exchange differences (2) (2) - -
TOTAL 39 (10) 49 (490.0)
(1) Net Financial Profit/(Loss) = Financial Income - Financial Expenses + Net
Exchange Differences.
(2) Net Financial Expense = Financial Income - Financial Expense.
In the first quarter of 2021, Net Financial Expense amounted to Euro 41
million, down Euro 49 million (612.5%) on the same period last year
To analyse the variations in Net Financial Expense during the first quarter of
2021, the following effects must be taken into account:
Millions of Euros
Net Financial Expense( (1))
January - March January - March Difference % Var.
2021
2020
Net Expenses for Financial Liabilities at Amortised Cost (35) (33) (2) 6.1
Update of provisions for workforce restructuring plans, plant dismantling and 6 25 (19) (76.0)
impairment of financial assets in accordance with IFRS 9 Financial Instruments
Late-Payment Interest on Compensation on Carbon Dioxide Emission Rights 70 - 70 -
Carbon (CO(2)) for 2006
TOTAL 41 (8) 49 (612.5)
(1) Net Financial Expense = Financial Income - Financial Expense.
The net financial expense for the period January-March 2021 includes, in the
amount of Euro 70 million, late-payment interest in relation to ENDESA's right
to be compensated for the reduction in its remuneration as a generating
company in the amount of the internalization of the carbon dioxide (CO(2))
emission rights assigned free of charge under the National Emission Rights
Allocation Plan (NAP), which it is not legally obliged to bear (see Section
5.2. Analysis of results of this Consolidated Management Report).
Net expenses for financial liabilities at amortised cost amounted to Euro 35
million, up Euro 2 million (+6.1%) on those recognised in the same period last
year, due to the combination of the following effects (see section 6.2.
Financial Management of this Consolidated Management Report):
* The average cost of gross financial debt remained constant (1.7% during the
first quarter of 2021 and 2020.
* The increase in the gross average financial debt between both periods, which
rose from Euro 7,735 million in the first quarter of 2020 to Euro 8,240
million in the first quarter of 2021.
5.2.4. Gains/(losses) of Companies accounted for using the Equity Method
In the first quarters of 2021 and 2020, the net income of the companies
accounted for using the equity method amounted to Euro 5 million and Euro 4
million, respectively, as follows:
Millions of Euros
Net Gains/(losses) of Companies accounted for using the Equity Method
January - March January - March
2021
2020
Associates 1 -
Tecnatom, S.A. 1 -
Joint Ventures 4 4
Tejo Energia - Produção e Distribuição de Energia Eléctrica, S.A. 1 2
Suministradora Eléctrica de Cádiz, S.A. 1 -
Other 2 2
TOTAL 5 4
5.2.5. Gains/(losses) on disposal of assets
In the first quarters of 2021 and 2020, the loss from the sale of assets
amounted to Euro 6 million, and includes mainly the expense for factoring
transaction fees.
5.2.6. Income tax.
In the first quarter of 2021, the income tax expense amounted to Euro 159
million, down Euro 101 million (-38.8%) with respect to the amount recognised
in the first quarter of 2020, mainly as a result of the changes in gross
operating income (EBITDA) and operating income (EBIT) (see section 5.2.
Analysis of results in this Consolidated Management Report).
The effective rate in January-March 2021 stood at 24.4% (23.5% in
January-March 2020), as a result mainly of the lower materialisation of relief
for the production of tangible movable property in the Canary Islands.
At the date of approval of this Consolidated Management Report, the recovery
of deferred tax assets was not affected by the current context and the
effective rate does not register impacts due to legislative changes that
affect Income Tax.
5.2.7. Net Income
The net income attributable to the Parent in the first quarter of 2021
amounted to Euro 491 million, representing a drop of Euro 353 million with
respect to the amount obtained in the same period last year.
Net ordinary income attributable to the Parent in the first quarter of 2021
and 2020 stood at Euro 491 million and Euro 831 million, respectively, as
follows:
Millions of Euros
January - March January - March Difference % Var.
2021
2020
Net income( (1)) 491 844 (353) (41.8)
Net Impairment Losses on Net Financial Assets( (2)) - (13) 13 (100.0)
Mainland Coal-fired Thermal Power Plants, Inventories and other Materials - (13) 13 (100.0)
Net ordinary income( (3)) 491 831 (340) (40.9)
(1) Net Income = Net Income Attributable to the Parent.
(2) Exceeding Euro 10 million.
(3) Net Ordinary Income = Net Income Attributable to the Parent - Net
gains/(losses) on Disposals of Non-financial Assets (exceeding Euro 10
million) - Net Impairment Losses on Non-financial Assets (exceeding Euro 10
million) - Initial Net Provision for Personnel Expenses for Workforce
Restructuring Plans relating to the Decarbonisation Plan and to Process
Digitalisation - Net Expenses relating to the Public Responsibility Plan for
the COVID-19 Health Crisis.
Economic Indicators.
Euros
Key figures January - March January - March % Var.
2021
2020
Net ordinary earnings per share ((1)) 0.464 0.785 (40.9)
Net earnings per share( (2)) 0.464 0.797 (41.8)
Cash flow per share( (3)) 0.551 0.261 111.1
Carrying Amount per Share( (4)) 7.513( (5)) 6.909 ((6)) 8.7
(1) Net Ordinary Earnings per Share = Net Ordinary Income attributable to the
Parent / Number of Shares at the end of the Reporting Period.
(2) Net Earnings per Share = Net Income Attributable to the Parent / Number of
Shares at the end of the Reporting Period.
(3) Cash Flow per Share = Net Cash Flows from Operating Activities / Number of
Shares at the end of the Reporting Period.
(4) Carrying Amount per Share = Equity of the Parent / Number of Shares at the
end of the Reporting Period.
(5) At 31 March 2021.
(6) At 31 December 2020
Profitability indicators (%) January - March January - March
2021
2020
Return on equity ((1)) 18.10 31.00
Return on assets ((2)) 4.27 7.81
Economic profitability( (3)) 8.91 16.02
Return on capital employed (ROCE)( (4)) 4.45 8.11
Return on Invested Capital (ROIC)( (5)) 9.31 16.41
(1) Return on Equity = Net Ordinary Income attributable to the Parent /
Average Equity of the Parent.
(2) Return on Assets = Net Ordinary Income attributable to the Parent / Total
Average Assets.
(3) Economic Profitability = Operating Income (EBIT) / Average Property, Plant
and Equipment.
(4) Return on Capital Employed (ROCE) = Operating Income after Tax / (Average
Non-current Assets + Average Current Assets)
(5) Return on Invested Capital (ROIC) = Operating Income after Tax / (Equity
of the Parent + Net Financial Debt).
6. Equity and Financial Analysis.
6.1. Net Invested Capital and Financing.
Below are the details of the breakdown and changes in ENDESA's net invested
capital at 31 March 2021 and 31 December 2020:
Millions of Euros
31 March 31 December Difference % Var.
2021
2020
Net Non-current Assets:
Property, Plant and Equipment and Intangible Assets 22,661 22,753 (92) (0.4)
Goodwill 462 462 - -
Investments Accounted for using the Equity Method 223 217 6 2.8
Other Net Non-Current Assets/(Liabilities) (4,268) (4,350) 82 (1.9)
Total Net Non-Current Assets ((1)) 19,078 19,082 (4) (0.0)
Net Working Capital:
Trade and other receivables 3,653 3,151 502 15.9
Inventories 1,120 1,077 43 4.0
Other Net Current Assets/(Liabilities) 899 1,091 (192) (17.6)
Suppliers and other payables (5,292) (6,194) 902 (14.6)
Total Net Working Capital ((2)) 380 (875) 1,255 (143.4)
Gross Invested Capital ((3)) 19,458 18,207 1,251 6.9
Deferred Tax Assets and Liabilities and Provisions:
Provisions for Pensions and Similar Obligations (698) (701) 3 (0.4)
Other provisions (3,435) (3,480) 45 (1.3)
Deferred Tax Assets and Liabilities 277 338 (61) (18.0)
Total Deferred Tax Assets and Liabilities and Provisions (3,856) (3,843) (13) 0.3
Non-current Assets classified as Held for Sale and Discontinued Operations - - - N/A
Net Invested Capital ((4)) 15,602 14,364 1,238 8.6
Equity ((6)) 8,106 7,465 641 8.6
Net Financial Debt ((5) (7)) 7,496 6,899 597 8.7
(1) Total Net Non-Current Assets = Property, Plant and Equipment + Intangible
Assets + Goodwill + Equity Method Investments + Real Estate Investments +
Non-Current Financial Assets - Deferred Income - Other Non-Current Liabilities
- Financial Derivatives recorded in Non-Current Financial Assets.
(2) Total Net Working Capital = Trade Receivables for Sales and Services and
other Accounts Receivable + Inventories + Current Financial Assets - Financial
Derivatives recorded in Current Financial Assets + Current Corporate Income
Tax Assets - Current Corporate Income Tax Liabilities -Suppliers and other
Creditors.
(3) Gross Invested Capital = Total Net Non-Current Assets + Total Net Working
Capital.
(4) Net Invested Capital = Gross Invested Capital - Provisions for Pensions
and Similar Obligations - Other Non-Current Provisions - Current Provisions +
Deferred Tax Assets - Deferred Tax Liabilities + Net Non-Current Assets Held
for Sale and Discontinued Operations.
(5) Net Financial Debt = Non-Current Financial Debt + Current Financial Debt -
Cash and Cash Equivalents - Financial Derivatives recorded in Financial
Assets.
(6) See section 6.3. Capital Management of this Consolidated Management
Report.
(7) See section 6.2. Financial Management of this Consolidated Management
Report.
At 31 March 2021, net invested capital stood at Euro 15,602 million and its
changes in the first quarter of 2021 were as follows:
* The decrease in “Property, Plant and Equipment and Intangible Assets”
amounted to Euro 92 million (-0.4%), as a result mainly to the depreciation
and amortisation charge, amounting to Euro 372 million (see section 5.2.2.
Operating Expenses of this Consolidated Management Report), not offset by
investments in January-March 2021 amounting to Euro 276 million (see Section
6.6. Investments of this Consolidated Management Report).
* The increase in "Net Working Capital" totalling Euro 1,255 million (+143.4%),
mainly as a result of the payment of the 2020 interim dividend on 4 January
2021, in the sum of Euro 741 million (see sections 6.5. Cash flows and 9.2.
Dividends of this Consolidated Management Report).
6.2. Financial Management.
Financial Debt.
At 31 March 2021, ENDESA had net financial debt of Euro 7,496 million, an
increase of Euro 597 million (+8.7%), with respect to that existing at 31
December 2020.
The reconciliation of ENDESA's gross and net financial debt at 31 March 2021
and 31 December 2020 is as follows:
Millions of Euros
Reconciliation of Financial debt
31 March 31 December Difference % Var.
2021
2020( )
Non-current financial debt 5,908 5,937 (29) (0.5)
Current financial debt 2,069 1,372 697 50.8
Gross Financial Debt( (1)) 7,977 7,309 668 9.1
Cash and cash equivalents (474) (403) (71) 17.6
Financial derivatives recognised under financial assets (7) (7) - -
Net financial debt 7,496 6,899 597 8.7
(1) At 31 March 2021, Euro 26 million were included, corresponding to
financial derivatives recognised under Financial Liabilities (Euro 36 million
at 31 December 2020).
When assessing the variations in net financial debt, it must be borne in mind
that on 4 January 2021 ENDESA, S.A. paid shareholders an interim dividend out
of 2020 profit, for a gross amount of Euro 0.70 per share, involving a pay-out
of Euro 741 million (see sections 6.5. Cash flows and 9.2. Dividends of this
Consolidated Management Report).
Structure.
The structure of ENDESA's gross financial debt at 31 March 2021 and 31
December 2020 was as follows:
Millions of Euros
Structure of gross financial debt
31 March 31 December Difference % Var.
2021 2020
Euro 7,890 7,222 668 9.2
US dollar (USD) 87 87 - -
TOTAL 7,977 7,309 668 9.1
Fixed rate 4,742 4,716 26 0.6
Floating rate 3,235 2,593 642 24.8
TOTAL 7,977 7,309 668 9.1
Sustainable financing (%) ((1)) 49 45 - -
Average life (years) ((2)) 4.5 4.6 - -
Average cost (%) ((3)) 1.7 1.7 - -
(1) Sustainable financing (%) = Sustainable gross financial debt / Gross
financial debt.
(2) Average life of the gross financial debt (no. of years) = (Principal * no.
of days in force) / (Principal in force at the end of the Reporting Period *
no. of days in the period).
(3) Average cost of gross financial debt (%) = (Cost of gross financial debt)
/ Gross average financial debt.
At 31 March 2021, the gross financial debt at fixed interest rates accounted
for 59% while 41% was at floating rates. At this date, 99% of the Company's
gross financial debt was denominated in euros.
Maturity.
At 31 March 2021, the breakdown of the nominal value of gross financial debt
without derivatives by maturity was as follows:
Millions of Euros
Carrying amount Nominal value Maturity
31 March
2021 ((1))
Current Non-current 2021 2022 2023 2024 Subsequent years
Bonds and other marketable securities 1,855 1,837 12 1,837 - - - 12
Bank borrowings 2,223 100 2,125 67 156 190 491 1,321
Other financial debts 3,873 132 3,741 114 63 61 3,055 580
TOTAL 7,951 2,069 5,878 2,018 219 251 3,546 1,913
(1) Excludes Euro 26 million corresponding to financial derivatives.
Main financial transactions.
In the first quarter of 2021, ENDESA maintained the SDG 7 Euro Commercial
Paper (ECP) emissions programme through ENDESA, S.A., and the outstanding
balance thereof at 31 March 2021 was equal to Euro 1,837 million, and its
renewal is backed by irrevocable bank credit lines. This Programme
incorporates sustainability objectives, in line with ENDESA's Strategic Plan.
Likewise, at the date of approval of this Consolidated Management Report, the
following financial transactions were performed, all of which incorporated
sustainability goals:
Millions of Euros
Operations Counterparty Signature Date Maturity Date Amount
Loan ((1) (2)) CaixaBank, S.A., Bankia, S.A. and Kutxabank, S.A. 25 March 2021 25 March 2024 300
Line of credit ((1) (2)) CaixaBank, S.A., Bankia, S.A. and Kutxabank, S.A. 25 March 2021 25 March 2024 250
Lines of Credit ((1) (3)) Various banks 25 March 2021 25 March 2025 1,955
Line of credit ((1)) BNP Paribas 25 March 2021 25 March 2025 100
Loan ((4)) CaixaBank, S.A. 31 March 2021 15 April 2028 150
Line of credit ((1)) Deutsche Bank, S.A.E. 28 April 2021 28 April 2025 70
TOTAL 2,825
(1) Transactions described as sustainable on including the performance
indicator (KPI) in relation to ENDESA's commitment that its mainland net
installed capacity from renewable sources is 55% of the total mainland net
installed capacity at 31 December 2022.
(2) Corresponds to a financial transaction in "Club Deal" format in force
renewed at the signature date.
(3) Corresponds to the new credit lines in force renewed at the signature
date.
(4) The credit conditions of this transactions are tied for the first time at
ENDESA to the objective established in the Company's Strategic Plan to reduce
specific Scope 1 carbon dioxide (CO(2)) emissions equivalent to 150 g
CO(2)eq/kWh in 2023.
At the date of approval of this Consolidated Management Report, ENDESA has not
had to resort to refinancing processes for its financial debt as a consequence
of the health crisis caused by COVID-19.
Likewise, during the first quarter of 2021, ENDESA did not modify, renegotiate
or cancel clauses contained in those lease arrangements in which it acts as
lessee hence, consequently, modifications were not made to either the asset
for the right of use that represents the right of use of the leased asset or
the liability that represents the present value of the obligation to make
lease payments during its term.
Financial stipulations
Certain ENDESA companies' financial debt contain the usual covenants in this
type of agreement. At the date of approval of this Consolidated Management
Report, neither ENDESA, S.A. nor any of its subsidiaries were in breach of
their financial obligations or any obligations that could require early
repayment of their liabilities.
Liquidity
At 31 March 2021, ENDESA had liquidity of Euro 4,462 million (Euro 4,493
million at 31 December 2020), as detailed below:
Millions of Euros
Liquidity
31 March 31 December Difference % Var.
2021 2020
Cash and cash equivalents 474 403 71 17.6
Unconditionally available on credit lines ((1)) 3,988 4,090 (102) (2.5)
TOTAL 4,462 4,493 (31) (0.7)
Coverage of debt maturities ((number of months) (2)) 35 17 18 105.9
(1) At 31 March 2021 and 31 December 2020, Euro 1,000 million correspond to
the committed irrevocable credit line available with ENEL Finance
International, N.V. Also, at 31 March 2021 and 31 December 2020, Euro 700
million correspond to the new credit line available with ENEL Finance
International, N.V.
(2) Coverage of debt maturities (number of months) = Maturity period (number
of months) for vegetative debt that could be covered with the liquidity
available.
Treasury investments considered as "Cash and Cash Equivalents" have high
liquidity and entail no risk of changes in value, mature within three months
from their contract date and accrue interest at the market rates for such
instruments.
At 31 March 2021, ENDESA had negative working capital of Euro 1,773 million.
The undrawn amount on the Company's long-term credit lines provide assurance
that the ENDESA can obtain sufficient financial resources to continue to
operate, realise its assets and settle its liabilities for the amounts shown
in the Consolidated Statement of Financial Position.
The undrawn credit lines also secure the refinancing of current financial debt
presented under "Non-current Financial Debt " in the accompanying Consolidated
Statement of Financial Position, which amounted to Euro 34 million at 31 March
2021 (Euro 33 million at 31 December 2020).
The amount of these credit lines, together with the current assets, provides
sufficient coverage of ENDESA’s short-term payment obligations.
To this end, ENDESA has a strong financial position and unconditional lines of
credit contracted with top-tier entities available for significant amounts.
This, together with the implementation of specific plans to improve and
efficiently manage liquidity, is estimated to enable the impact of the
economic situation to be addressed (see section 4.2. COVID-19 Health Crisis of
this Consolidated Management Report).
6.3. Capital Management
In the first three months of 2021, ENDESA followed the same capital management
policy as that described in Note 14.1.12 to the Consolidated Financial
Statements for the year ended 31 December 2020.
Capital.
At 31 March 2021, ENDESA, S.A. had share capital of Euro 1,270,502,540.40,
represented by 1,058,752,117 shares with a par value of Euro 1.2 each, fully
subscribed and paid up and all admitted for trading on the Spanish Stock
Exchanges.
At 31 March 2021, the ENEL Group, through ENEL Iberia, S.L.U., held 70.1% of
ENDESA, S.A.’s share capital.
At that date no other shareholder held more than 10% of the share capital of
ENDESA, S.A.
Leverage.
ENDESA considers its consolidated leverage to be an indicator to monitor its
financial position. Details of this ratio at 31 March 2021 and 31 December
2020 are as follows:
Millions of Euros
Leverage % Var.
31 March 31 December
2021( )
2020( )
Net financial debt: 7,496 6,899 8.7
Non-current financial debt 5,908 5,937 (0.5)
Current financial debt 2,069 1,372 50.8
Cash and cash equivalents (474) (403) 17.6
Financial derivatives recognised under financial assets (7) (7) -
Equity: 8,106 7,465 8.6
Of the Parent 7,954 7,315 8.7
Of non-controlling interests 152 150 1.3
Financial (%) ((1)) 92.47 92.42 -
(1) Leverage (%) = Net financial debt /equity.
ENDESA, S.A.'s directors consider that its leverage will enable it to optimise
the cost of capital while maintaining a high solvency ratio. Therefore, in due
consideration of expectations of earnings and the investment plan, the future
dividend policy will maintain a leverage to achieve the aforementioned capital
management target.
At the date on which this Consolidated Management Report was approved, ENDESA,
S.A. had no commitments to obtain funds through its own sources of finance.
Financial indicators.
Financial indicators 31 March 31 December
2021
2020
Liquidity ratio( (1)) 0.79 0.73
Solvency ratio( (2)) 0.93 0.91
Debt Ratio( (3) )(%) 48.05 48.03
Debt coverage ratio( (4)) 2.13 1.82
Net Financial Debt( (5) )/ Fixed Assets( (6)) (%) 32.34 29.64
Net Financial Debt( (5) )/ Funds from Operations( (7)) 1.97 2.23
Funds from Operations( (7) )+ Interest Expenses( (8))) / Interest Expenses( 60.56 77.00
(8) (9))
(1) Liquidity = Current Assets / Current Liabilities.
(2) Solvency = (equity + non-current liabilities) / non-current assets.
(3) Debt = net financial debt / (equity + net financial debt) (%).
(4) Debt Hedge = Net Financial Debt / Gross Operating Income (EBITDA).
(5) Net Financial Debt = Non-current Financial Debt + Current Financial Debt
– Cash and Cash Equivalents – Financial Derivatives recognised under
Financial Assets.
(6) Fixed Assets = Property, Plant and Equipment + Investment Property +
Intangible Assets + Goodwill.
(7) Funds from Operations = Cash Flows from Operating Activities - Changes in
Current Capital - Self-constructed Assets.
(8) Interest expenses = Interest Paid (see section 6.5. of Cash Flows of this
Consolidated Management Report).
(9) It relates to the periods from January-March 2021 and January-March 2020,
respectively.
6.4. Management of Credit Ratings.
ENDESA's credit ratings are as follows:
Credit rating
31 March 2021 ((1)) 31 December 2020 ((1))
Long term Short term Outlook Date of Last Report Long term Short term Outlook
Standard & Poor’s BBB+ A-2 Stable 26 November 2020 BBB+ A-2 Stable
Moody’s Baa1 P-2 Stable 14 January 2021 Baa1 P-2 Stable
Fitch A- F2 Stable 30 April 2021 A- F2 Stable
(1) At the respective dates of approval of the Consolidated Management Report.
ENDESA's credit rating is influenced by the rating of its Parent ENEL,
according to the methods employed by rating agencies, and, on the date of
approval of this Consolidated Management Report, it has been classified as
“investment grade” by all the rating agencies.
ENDESA works to maintain its investment grade credit rating to be able to
efficiently access money markets and bank financing, and to obtain
preferential terms from its main suppliers.
6.5. Cash flows.
At 31 March 2021 and 31 December 2020, cash and cash equivalents were as
follows (see section 6.2. Financial Management of this Consolidated Management
Report):
Millions of Euros
Cash and cash equivalents
31 March 31 December Difference % Var.
2021( )
2020
Cash in hand and at banks 474 403 71 17.6
Cash equivalents - - - -
TOTAL 474 403 71 17.6
ENDESA's net cash flows in the first quarters of 2021 and 2020, classified by
operating, investing and financing activities, were as follows:
Millions of Euros
Statement of cash flows
January - March January - March Difference % Var.
2021
2020
Net Cash Flows from Operating Activities 583 276 307 111.2
Net Cash Flows from Investing Activities (445) (508) 63 (12.4)
Net cash flows from financing activities (67) 200 (267) (133.5)
In the first quarter of 2021, net cash flows generated by operating activities
(Euro 583 million) helped to cover the net payments arising from investing
activities (Euro 445 million) and financing activities (Euro 67 million).
Net cash flows from operating activities
In the first quarter of 2021, net cash flows from operating activities
amounted to Euro +583 million (Euro +276 million in the first quarter of
2020), as follows:
Millions of Euros
January - March January - March Difference % Var.
2021
2020
Profit before tax and non-controlling interests 653 1,106 (453) (41.0)
Adjustments for: 422 (82) 504 (614.6)
Depreciation and amortisation, and impairment losses 404 358 46 12.8
Other adjustments (net) 18 (440) 458 (104.1)
Changes in current capital: (411) (759) 348 (45.8)
Trade and other receivables (203) (57) (146) 256.1
Inventories (177) (219) 42 (19.2)
Current financial assets 27 (166) 193 (116.3)
Trade payables and other current liabilities (58) (317) 259 (81.7)
Other cash flows from operating activities: (81) 11 (92) (836.4)
Interest received 5 4 1 25.0
Dividends received 1 1 - -
Interest paid( (1)) (16) (13) (3) 23.1
Income tax paid (2) 74 (76) (102.7)
Other receipts from and payments for operating activities( (2)) (69) (55) (14) 25.5
NET CASH FLOWS FROM OPERATING ACTIVITIES 583 276 307 111.2
(1) Includes interest paid on financial debts for rights of use amounting to
Euro 8 million and Euro 8 million, respectively.
(2) Corresponding to payments of provisions.
The variations in the different items determining the net cash flows from
operating activities include:
* The higher cash flow from the net amount of gross income before taxes and
controlling interests and the depreciation and amortisation and other
adjustments of income (Euro 51 million).
* Changes in current capital between both periods amounting to Euro 348 million,
mainly as a result of the decrease in trade payables of Euro 259 million, of
the negative performance of trade and other receivables (Euro 146 million) and
the lower payments for inventories (Euro 42 million), the positive changes in
receivables for offsetting extra-costs of Non-mainland Territories generation
(“TNP”) (Euro 80 million) and the positive variations in receivables for
the tariff deficit (Euro 104 million).
* The variation in income tax between both periods amounting to Euro 76 million.
In the first quarter of 2021, ENDESA has also continued with its active
management policy for working assets and working liabilities, focusing, among
other aspects, on the improvement of processes, the factoring of receivables
and agreements extending payment periods with suppliers.
At 31 March 2021, 31 December 2020 and 31 March 2020, working capital
comprised the following items:
Millions of Euros
Sections Working capital
January - March 31 December 31 March
2021
2020
2020
Current Assets( (1)) 6,346 5,831 6,629
Inventories 1,120 1,077 1,245
Trade and other receivables 4,099 3,577 3,962
Current financial assets 1,127 1,177 1,422
Compensation for extra-costs of non-mainland territories generation 676 602 716
(“TNP”)
Collection rights for financing of the shortfall of regulated activities 176 277 392
Remuneration of the distribution activity 225 246 190
Other 50 52 124
Current Liabilities ((2)) 6,524 7,183 6,760
Current provisions 558 477 634
Trade payables and other current liabilities 5,966 6,706 6,126
Dividend of the Parent 6.2 and 9.2 - 741 -
Other 5,966 5,965 6,126
(1) Excludes cash and cash equivalents and derivatives recognised as financial
assets corresponding to financial debt.
(2) Excludes "Current Financial Debt " and Liability Financial Derivatives
corresponding to financial debt.
Net cash flows from investing activities.
In the first quarter of 2021, net cash flows used in investing activities
totalled Euro +445 million (Euro +508 million in the first quarter of 2020)
and include, among other aspects:
* Net cash flows used in the acquisition of property, plant and equipment and
intangible assets:
Millions of Euros
Sections January - March January - March
2021
2020
Acquisitions of property, plant and equipment and intangible assets (392) (409)
Acquisitions of Property, Plant and Equipment( (1)) 6.6 (217) (187)
Acquisitions of intangible assets 6.6 (55) (36)
Facilities transferred from customers 15 5
Suppliers of property, plant and equipment (135) (191)
Proceeds from sale of property, plant and equipment and intangible assets 2 1
Grants and other deferred income 18 15
TOTAL (372) (393)
(1) From January-March 2021, additions for rights of use amounting to Euro 4
million are not included (Euro 45 million from January-March 2020).
* Net cash payments for investments and/or receipts from disposals of holdings
in Group companies:
Millions of Euros
Sections January - March January - March
2021
2020
Investments in Group companies (20) -
Companies acquired by ENEL Green Power España, S.L.U. (EGPE) 4.1 (20) -
TOTAL (20) -
Net cash flows from financing activities.
In the first quarter of 2021, cash flows from financing activities amounted to
Euro -67 million (+Euro 200 million in the first quarter of 2020), mainly
including the following aspects:
* Cash flows from equity instruments:
Millions of Euros
January - March January - March
2021
2020
Return of Contribution of ENDESA Soluciones, S.L. 4 -
Return of Contribution to Non-Controlling Interests of Bosa del Ebro, S.L. (1) -
TOTAL 3 -
* Drawdowns of Non-current Financial Debt:
Millions of Euros
January - March January - March
2021
2020
Drawdowns from credit lines 32 350
TOTAL 32 350
* Repayments of the following non-current Financial Debt:
Millions of Euros
January - March January - March
2021
2020
Other (3) (2)
TOTAL (3) (2)
* Drawdowns and Repayments of Current Financial Debt:
Millions of Euros
Sections January - March January - March
2021
2020
Drawdowns
Issues of Euro Commercial Paper (ECP) 6.2 2,416 2,518
Other 24 46
Amortisation and Depreciation
Redemptions of Euro Commercial Paper (ECP) 6.2 (1,740) (1,924)
Payments for Rights of Use Agreements (17) (18)
Repayment of European Investment Bank (EIB) Green Loan (33) -
Other (5) (24)
TOTAL 645 598
* Dividends Paid:
Millions of Euros
Sections January - March January - March
2021
2020
Dividends of the Parent Paid 6.2 and 9.2 (741) (741)
Dividends paid to Non-controlling Interests ((1)) (3) (5)
TOTAL (744) (746)
(1) Corresponding to companies of ENEL Green Power España, S.L.U. (EGPE).
6.6. Investments.
In the first quarter of 2021, ENDESA made gross investments of Euro 283
million. Of this amount, Euro 276 million related to Property, Plant and
Equipment and Intangible Assets and the remaining Euro 7 million to Financial
Investments, as follows:
Millions of Euros
Investments( (1))
January - March January - March % Var.
2021
2020
Generation and supply 91 138 (34.1)
Non-mainland Territories generation (“TNP”) 6 14 (57.1)
Other generation and supply 85 124 (31.5)
Distribution 128 92 39.1
Structure and Others( (2)) 2 2 -
TOTAL PP&E( (3) (4)) 221 232 (4.7)
Generation and supply 40 26 53.8
Non-mainland Territories generation (“TNP”) - - N/A
Other generation and supply 40 26 53.8
Distribution 14 6 133.3
Structure and Others( (2)) 1 4 (75.0)
TOTAL INTANGIBLE ASSETS( (4)) 55 36 52.8
FINANCIAL INVESTMENTS 7 3 133.3
TOTAL GROSS INVESTMENTS 283 271 4.4
Grants related to Assets and Transferred Facilities (33) (20) 65.0
Generation and supply - - N/A
Distribution (33) (20) 65.0
TOTAL NET INVESTMENTS ((5)) 250 251 (0.4)
(1) Does not include corporate acquisitions made during the year (see section
4.1. Consolidation Scope of this Consolidated Management Report).
(2) Structure, Services and Adjustments.
(3) From January-March 2021, additions for rights of use amounting to Euro 4
million are included (Euro 45 million from January-March 2020).
(4) The period from January-March 2021 includes investments for products,
services and technologies low in carbon amounting to Euro 262 million (Euro
254 million from January-March 2020).
(5) Net Investments = Gross Investments - Grants related to Assets and
Transferred Facilities.
Investment in Property, Plants and Equipment.
In the first quarter of 2021, gross investment in generation includes
investments for the construction of electricity generation facilities from
renewable sources, for Euro 41 million (Euro 47 million in the first quarter
of 2020).
Likewise, in the period from January-March 2021, gross supply investments
mainly related to the development of the activities related to new products
and services for Euro 4 million (Euro 5 million in the period from
January-March 2020).
Gross distribution investments related to grid extensions and investments
aimed at optimising its functioning for greater efficiency and service
quality.
As of 31 March 2021, the COVID-19 health crisis has not caused significant
impacts in relation to the start-up dates of the projects foreseen in the
investment plan.
Investment in Intangible Assets.
Gross investments in intangible assets in the first quarter of 2021 correspond
to IT applications and ongoing investments in ICT activities in the sum of
Euro 31 million and to the capitalisation of incremental costs incurred from
the obtainment of customer contracts for Euro 24 million (Euro 17 million and
Euro 19 million, respectively, in the first quarter of 2020).
Financial investments.
Gross investments in the first quarter of 2021 include, primarily, various
financial loans.
7. Segment Information.
In carrying out its business activities, ENDESA’s organisation prioritises
its core business of electricity and gas generation, distribution, and sale as
well as related services. Therefore, the financial information analysed by the
Executive Committee of the Company Management for the purposes of taking its
decisions is the Segment information, which includes:
* Generation and Supply;
* Distribution;
* Structure, mainly including the balances and transactions of holding companies
and financing and service provision companies; and
* Consolidation Adjustments and Eliminations, including the inter-segment
consolidation eliminations and adjustments.
The corporate organisation of ENDESA essentially matches these Segments.
Therefore, the allocation established in the Segment reporting presented below
is based on the financial information of the companies making up each Segment.
The table below presents the detail of the most relevant figures of the
Consolidated Income Statement among ENDESA's business areas in the first
quarters of 2021 and 2020:
Millions of Euros
January-March 2021
Generation and Supply Distribution Structure and Others( (1)) Total
Non-mainland Territories generation (“TNP”) Other Generation and Supply Adjustments Total
Revenue 406 4,139 (147) 4,398 641 (46) 4,993
Sales 405 3,858 (148) 4,115 579 (36) 4,658
Other operating income 1 281 1 283 62 (10) 335
Procurements and Services (278) (3,312) 146 (3,444) (44) 27 (3,461)
Contribution Margin( (2)) 128 827 (1) 954 597 (19) 1,532
Self-constructed assets 1 15 - 16 25 - 41
Personnel expenses (22) (103) - (125) (67) (43) (235)
Other fixed operating expenses (26) (265) 1 (290) (79) 50 (319)
Gross Operating Income (EBITDA)( (3)) 81 474 ((8)) - 555 476 (12) 1,019
Depreciation and amortisation, and impairment losses (31) (196) - (227) (162) (15) (404)
Operating Income (EBIT)( (4)) 50 278 - 328 314 (27) 615
Net Financial Profit/(loss)( (5)) (3) 54 - 51 (15) 3 39
Profit before tax 47 329 - 376 300 (23) 653
Net income( (6)) 36 247 - 283 227 (19) 491
Net ordinary income( (7)) 36 247 - 283 227 (19) 491
(1) Structure, Services and Adjustments.
(2) Contribution Margin = Revenue - Procurements and Services.
(3) Gross Operating Income (EBITDA) = Revenue - Procurements and Services +
Self-constructed assets - Personnel Expenses
Other Fixed Operating Expenses.
(4) Operating Income (EBIT) = Gross Operating Income (EBITDA) - Amortisation
and Impairment Losses.
(5) Net Financial Profit/(loss) = Financial Income - Financial Expense + Net
Exchange Differences..
(6) Net Income = Net Income Attributable to the Parent.
(7) Net Ordinary Income = Net Income Attributable to the Parent - Net Income
on Sales of Non-Financial Assets (exceeding Euro 10 million - Net Impairment
Losses on Non-Financial Assets (exceeding Euro 10 million) - Initial Net
Provision for Personnel Expenses for Workforce Restructuring Plans relating to
the Decarbonisation Plan and to Process Digitalisation - Net Expenses relating
to the Public Responsibility Plan for the COVID-19 Health Crisis.
(8) Includes Gross Operating Income (EBITDA) of ENEL Green Power España,
S.L.U. (EGPE) amounting to Euro 67 million.
Millions of Euros
January-March 2020
Generation and supply Distribution Structure and Others( (1)) Total
Non-mainland Territories generation (“TNP”) Other Generation and Supply Adjustments Total
Revenue 496 4,113 (150) 4,459 656 (46) 5,069
Sales 495 3,679 (151) 4,023 592 (35) 4,580
Other operating income 1 434 1 436 64 (11) 489
Procurements and Services (345) (3,247) 149 (3,443) (43) 31 (3,455)
Contribution Margin( (2)) 151 866 (1) 1,016 613 (15) 1,614
Self-constructed assets - 15 - 15 29 3 47
Personnel expenses (8) 80 - 72 118 (46) 144
Other fixed operating expenses (50) (255) 1 (304) (93) 68 (329)
Gross Operating Income (EBITDA)( (3)) 93 706 ((8)) - 799 667 10 1,476
Depreciation and amortisation and impairment losses (28) (157) - (185) (159) (14) (358)
Operating Income (EBIT)( (4)) 65 549 - 614 508 (4) 1,118
Net Financial Profit/(loss)( (5)) (4) (9) - (13) (6) 9 (10)
Profit before tax 61 538 - 599 502 5 1,106
Net income( (6)) 52 412 - 464 379 1 844
Net ordinary income( (7)) 52 399 - 451 379 1 831
(1) Structure, Services and Adjustments.
(2) Contribution Margin = Revenue - Procurements and Services.
(3) Gross Operating Income (EBITDA) = Revenue - Procurements and Services +
Self-constructed assets - Personnel Expenses
Other Fixed Operating Expenses.
(4) Operating Income (EBIT) = Gross Operating Income (EBITDA) - Amortisation
and Impairment Losses.
(5) Net Financial Profit/(loss) = Financial Income - Financial Expense + Net
Exchange Differences..
(6) Net Income = Net Income Attributable to the Parent.
(7) Net Ordinary Income = Net Income Attributable to the Parent - Net Income
on Sales of Non-Financial Assets (exceeding Euro 10 million - Net Impairment
Losses on Non-Financial Assets (exceeding Euro 10 million) - Initial Net
Provision for Personnel Expenses for Workforce Restructuring Plans relating to
the Decarbonisation Plan and to Process Digitalisation - Net Expenses relating
to the Public Responsibility Plan for the COVID-19 Health Crisis.
(8) Includes Gross Operating Income (EBITDA) of ENEL Green Power España,
S.L.U. (EGPE) amounting to Euro 51 million.
7.1. Generation and Supply Segment.
The main figures of the Segment in the period January-March 2021 and of their
variations with respect to the same period of the previous year are as
follows:
Millions of Euros
Generation and Supply Segment
January - March January - March Difference % Var.
2021
2020
Contribution margin 954 1,016 (62) (6.1)
Gross Operating Income EBITDA 555 799 (244) (30.5)
Operating Income (EBIT) 328 614 (286) (46.6)
Contribution Margin.
In the first quarter of 2021, the contribution margin in the Generation and
Supply segment totalled Euro 954 million, down Euro 62 million year on year
(-6.1%), with a cumulative arithmetic price of Euro 45.2/MWh; +29.5%) on the
wholesale electricity market and of commodities price, which has been
partially offset by the registration of the right to compensation for the
reduction in remuneration as a generating company in the amount of the
internalization of carbon dioxide (CO(2)) emission rights allocated free of
charge by the National Allocation Plan for Emission Rights (NAP), which it has
no legal duty to bear.
Gross Operating Income EBITDA.
Gross Operating Income (EBITDA) for the Generation and Supply Segment amounted
to Euro 555 million (-30.5%) in the first quarter of 2021. The following
factors must be taken into account when analysing the changes for the first
quarter of 2021:
* The 6.1% reduction in the contribution margin.
* The updates of the provisions for current workforce restructuring plans for
Euro 4 million (negative) in the first quarter of 2021 and Euro 16 million
(positive) in the first quarter of 2020).
* The implementation in the period January-March 2020 of the “V ENDESA
Framework Collective Bargaining Agreement” and the recognition of a
restructuring provision relating to the “Agreement on Voluntary Measures to
Suspend or Extinguish Labour Contracts”, generating a positive impact in the
Income Statement of Euro 186 million.
Operating Income (EBIT)
In the first quarter of 2021, Operating Income (EBIT) for the Generation and
Supply segment was Euro 328 million, down Euro 286 million, mainly as a result
of:
* The decrease of 30.5% in Gross Operating Income (EBITDA).
* The increase in impairment losses of Euro 33 million compared to the same
period of the previous year. This variation includes, among other items,
impairment losses from contracts with customers partially related to the
economic situation caused by COVID-19.
7.2. Distribution Segment.
The main figures of the Distribution Segment in the period January-March 2021
and of their variations with respect to the same period of the previous year
are as follows:
Millions of Euros
Distribution Segment
January - March January - March Difference % Var.
2021
2020
Contribution Margin 597 613 (16) (2.6)
Gross Operating Income EBITDA 476 667 (191) (28.6)
Operating Income (EBIT) 314 508 (194) (38.2)
Contribution Margin.
The contribution margin of the Distribution Segment in the first quarter of
2021 increased to Euro 597 million, which represents a decrease of Euro 16
million (-2.6%) year on year; this can mainly be attributed to the drop in
regulated income from the distribution activity, totalling Euro 14 million
(-2.7%), mainly as a result of the new financial remuneration rate value
applicable as of 1 January 2021.
Gross Operating Income EBITDA.
Gross Operating Income (EBITDA) for the Distribution Segment amounted to Euro
476 million (-28.6%) in the first quarter of 2021. The following factors must
be taken into account when analysing the changes for the first quarter of 2021
with respect to the same period last year:
* The negative performance of the contribution margin (-2.6%).
* The updates of the provisions for current workforce restructuring plans for
Euro 2 million (negative) in the first quarter of 2021 and Euro 7 million
(positive) in the first quarter of 2020).
* The implementation in the period January-March 2020 of the “V ENDESA
Framework Collective Bargaining Agreement” and the recognition of a
provision for workforce restructuring relating to the “Agreement on
Voluntary Measures to Suspend or Extinguish Labour Contracts”, generating a
positive impact in the Income Statement of Euro 178 million.
Operating Income (EBIT)
Operating Income (EBIT) for the Distribution Segment in the first quarter of
2021 dropped by Euro 194 million year on year (-38.2%), mainly as a result of
the 28.6% decrease in Gross Operating Income (EBITDA).
7.3. Structure and Others Segment.
The main figures of the Structure and Others Segment in the period
January-March 2021 and of their variations with respect to the same period of
the previous year are as follows:
Millions of Euros
Structure and Others Segment
January - March January - March Difference % Var.
2021
2020
Contribution margin (19) (15) (4) 26.7
Gross Operating Income EBITDA (12) 10 (22) (220.0)
Operating Income (EBIT) (27) (4) (23) 575.0
Contribution Margin.
The contribution margin of the Structure and Other Segment in the first
quarter of 2021 amounted to Euros 19 million, negative, in line with the
amount for the same period of the 2020 financial year.
Gross Operating Income EBITDA.
Gross Operating Income (EBITDA) in the first quarter of 2021 in the Structure
and Others Segment was down by Euro 22 million year-on-year, mainly as a
result of:
* The updates of the provisions for current workforce restructuring plans for
Euro +2 million in the first quarter of 2021 and Euro +20 million in the first
quarter of 2020).
* The implementation in the period January-March 2020 of the “V ENDESA
Framework Collective Bargaining Agreement” and the recognition of a
provision for workforce restructuring costs relating to the “Agreement on
Voluntary Measures to Suspend or Extinguish Labour Contracts”, generating a
negative impact in the Income Statement of Euro 8 million.
Operating Income (EBIT)
Operating Income (EBIT) in the first quarter of 2021 in the Structure and
Others Segment was down by Euro 23 million year-on-year, mainly as a result of
Gross Operating Income (EBITDA):
8. Regulatory Framework.
From a regulatory perspective, the main highlights during the period were as
follows:
2021 electricity tariff
On 29 December 2020, Order TEC/1271/2020 was published in the Official State
Gazette, of 22 December 2020, which sets out various costs of the Electricity
System for the 2021 financial year, and extends electricity access tariffs
until the entry into force of tariffs set by the Spanish Markets and
Competition Commission (“CNMC”).
2021 natural gas tariff
Circular 6/2020, of 22 July 2020, of the Spanish Markets and Competition
Commission (“CNMC”) approved the methodology to calculate transmission
tariffs, local grids and natural gas regasification and, among other aspects,
established that this Commission should set the values of tariffs to access
regasification facilities and, where appropriate, the billing terms of the
distribution toll for transmission and distribution tariffs, applicable from 1
October 2020.
On 29 December 2020, the Resolution, of 21 December, of the
Directorate-General for Energy Policy and Mines, was published, which
establishes the Natural Gas Last Resort Tariff (LRT) to be applied from 1
January 2021, resulting in an average increase of 4.6% and 6.3%, depending on
whether Last Resort Tariff 1 (LRT1) or Last Resort Tariff 2 (LRT2),
respectively, applies, due to the increase in the cost of raw materials.
Energy Efficiency.
On 25 March 2021, Order TED/275/2021, of 18 March 2021, establishing the
contribution to the Energy Efficiency National Fund for 2021, was published in
the Official State Gazette, and the percentage for ENDESA amounted to Euro
27.7 million.
Strategic energy and climate framework.
On 31 March 2021, the Resolution of 25 March 2021 was published in the
Official State Gazette, in conjunction with the Directorate-General for Energy
Policy and Mines and the Spanish Climate Change Office, publishing the
Agreement of the Council of Ministers of 16 March 2021, adopting the final
version of the National Integrated Energy and Climate Plan (PNIEC) 2021-2030,
once the consultations and preliminary proceedings have been completed and
approved by the European Commission.
Likewise, on 8 Abril 2021, the Congress's Ecological Transition and
Demographic Challenge Commission approved the Draft Law on Climate Change and
Energy Transition, which will now be transferred to the Senate to continue its
parliamentary procedure.
Royal Decree 148/2021, establishing the methodology to calculate Electricity
System charges.
On 18 March 2021, Royal Decree 148/2021, of 9 March 2021, was published in the
Official State Gazette, establishing the calculation methodology for
Electricity System charges.
This Royal Decree complements the transmission and electricity distribution
tariffs, which are set by the Spanish Markets and Competition Commission
(CNMC).
The methodology approved will apply jointly to the new transmission and
distribution tolls of the Spanish Markets and Competition Commission (CNMC)
and not before 1 January 2021.
Energy Storage Strategy.
On 9 February 2021, the Council of Ministers approved the Energy Storage
Strategy, an element considered to be crucial for the transition towards an
economy neutral in emissions and the effective integration of renewable
energies in the system.
The Strategy quantifies the storage needs in line with that envisaged in the
National Integrated Energy and Climate Plan (PNIEC) 2021-2030 and the climate
neutrality target before 2050, from the 8.3 GW currently available to around
20 GW in 2030 and 30 GW in 2050. Furthermore, all the technologies forming
energy storage are classified according to the applicable method and system,
the actions for their effective deployment are identified, together with the
regulatory challenges for the participation of storage on electricity markets,
taking into account the market access procedures and their role in the price
structure and signs, and likewise the economic challenges represented by them
are analysed, in conjunction with the need for industrial policies that
encourage their financing.
9. Other Information.
9.1. Stock market information
The changes in the listed price of ENDESA, S.A. and the major benchmark
indexes in the periods from January-March 2021 and 2020 were as follows:
Percentage (%)
Share price performance ((1)) January-March January-March
2021 2020
ENDESA, S.A. 0.9 (18.2)
Ibex-35 6.3 (28.9)
EuroStoxx 50 10.3 (25.6)
EuroStoxx Utilities (0.3) (13.7)
(1) Source: Madrid Stock Exchange.
Stock market information 31 March 31 December % Var.
2021 2020
Market capitalisation( (1)) Millions of Euros 23,885 23,663 0.9
Number of shares 1,058,752,117 1,058,752,117 -
Nominal share value Euros 1.2 1.2 -
Cash ((2)) Millions of Euros 2,213 9,696 (77.2)
Continuous market Shares
Trading volume( (3)) 100,992,599 430,957,400 (76.6)
Average daily trading volume( (4)) 1,603,057 1,676,877 (4.4)
Price to Earnings Ratio (P.E.R.) Ordinary( (5)) 17.26 11.10 -
Price to earnings ratio (PER)( (6)) 17.26 16.97 -
Price / Carrying amount( (7)) 3.00 3.23 -
(1) Market Cap = Number of Shares at the end of the Reporting Period * Price
at the end of the Reporting Period.
(2) Cash = Sum of all the transactions performed on the shares during the
reference period (Source: Madrid Stock Exchange).
(3) Trading Volume = Total volume of stock in ENDESA, S.A. traded in the
period (Source:
(4) Average Daily Trading Volume = Arithmetic mean of stock in ENDESA, S.A.
traded per session during the period (Source: Madrid Stock Exchange).
(5) Price to Earnings Ratio (P.E.R.) Ordinary = Price at the end of the
Reporting Period / Net Ordinary Earnings per Share.
(6) Price to Earnings Ratio (P.E.R.) = Price at the end of the Reporting
Period / Net Earnings per Share.
(7) Price / Carrying Amount = Market Cap / Equity of the Parent.
Euros
ENDESA share price ((1)) January-March 2020 % Var.
2021
Maximum 22.850 26.120 (12.5)
Minimum 20.320 15.500 31.1
Period average 21.781 22.677 (4.0)
Period close 22.560 22.350 0.9
(1) Source: Madrid Stock Exchange.
Despite the fact that the signs of economic recovery are not clear, the
optimism boosted by the vaccination campaign against COVID-19 and the
stimulation of Governments and Central Banks enabled the main stock market
indexes to end the first quarter of 2021 positively. The Spanish IBEX-35 was
not an exception, rising by 6.27%, to 8,580 points.
Of the 35 securities on the IBEX-35, 28 of them ended the quarter with gains,
including ENDESA, with a rise of 0.94% to close at Euro 22.56 per share.
The fluctuations in ENDESA's shares compare favourably with the fall of 0.26%
suffered by the European sectoral index Eurostoxx Utilities in the same
period.
ENDESA's securities marked their quarterly low on 3 March at Euro 20.32 per
share, leading to a fall of 9.1%. From that level, they managed to recover
ground in recent weeks until reaching their maximum on 30 March of Euro 22.85,
up 2.2% on the level at which they began the year.
At the end of the quarter, the market cap was Euro 23,885 million, placing
ENDESA as the security with the eighth highest capitalisation on the IBEX-35.
9.2. Dividends
The Board of Directors of ENDESA, S.A. operates an economic-financial strategy
to generate a significant amount of cash to maintain Company debt levels and
maximise shareholder remuneration. This also guarantees the sustainability of
its business project.
As a result of this economic-financial strategy, unless any exceptional
circumstances arise, which will be duly announced, at the meeting on 25
November 2020 the Board of Directors of ENDESA, S.A. approved the following
shareholder remuneration policy for 2020-2023:
* For 2020: The ordinary dividend per share to be distributed with a charge to
the year will be 100% of net ordinary profit attributed to the Parent in the
Consolidated Financial Statements of the Group headed by this company.
* For 2021, the ENDESA, S.A. Board of Directors will seek that the ordinary
dividend per share agreed to be distributed with a charge to that year be
equal to 80% of the net ordinary profit attributed to the Parent Company in
the Group's Consolidated Financial Statements.
* For 2022 and 2023, the Board of Directors of ENDESA, S.A. will endeavour to
ensure that the ordinary dividend per share to be agreed to be distributed
with a charge to the year is 70% of the net ordinary profit attributed to the
Parent in the Group's Consolidated Financial Statements.
The intention of the Board of Directors of ENDESA, S.A. is that the ordinary
dividend will be paid solely in cash in two instalments (January and July) on
a given date to be determined in each case, which will be duly disclosed.
Notwithstanding the foregoing, ENDESA's capacity to pay out dividends to its
shareholders depends on numerous factors, including the generation of profit
and the availability of unrestricted reserves, and, therefore, the Company
cannot ensure that dividends will be paid out in future years or the amount of
such dividends if paid.
Approval was given at ENDESA, S.A.'s General Shareholders' Meeting of 30 April
2021 to pay shareholders a total dividend charged against 2020 profit for a
gross amount of Euro 2,0136 per share (Euro 2,132 million in total).
Including the interim dividend of Euro 0.70 gross per share (Euro 741
million), paid on 4 January 2021 (see sections 6.2. Financial Management and
6.5. Cash Flow of this Consolidated Management Report), the final dividend
paid against 2020 profit amounts to Euro 1,3136 gross per share (Euro 1,391
million) and will be paid on 1 July 2021.
In accordance with the foregoing, details of ENDESA, S.A.'s dividends per
share in 2020 and 2019 are as follows:
2020 2019 % Var.
Share capital Millions of Euros 1,270.5 1,270.5 -
Number of shares 1,058,752,117 1,058,752,117 -
Consolidated net ordinary income Millions of Euros 2,132 1,562 36.5
Consolidated net income Millions of Euros 1,394 171 715.2
Individual net income Millions of Euros 2,330 1,642 41.9
Net Ordinary earnings per share ((1)) Euros 2.0136 1.475 36.5
Net earnings per share( (2)) Euros 1.317 0.162 715.2
Gross dividend per share Euros 2.0136 ((3)) 1.475( (4)) -
Consolidated Ordinary Pay-out( (5)) % 100.0 100.0 -
Consolidated Pay-out( (6)) % 152.9 913.3 -
Individual Pay-out( (7)) % 91.5 95.1 -
(1) Net Ordinary Earnings per Share (Euros) = Net Ordinary Income of the
Parent / Number of Shares at Year-end
(2) Net Earnings per Share (Euros) = Profit/(loss) of the Parent / Number of
Shares at Year-end.
(3) Interim Dividend equal to Euro 0.7 gross per share paid on 4 January 2021
plus the final dividend equal to Euro 1,3136 gross per share approved by
ENDESA, S.A.'s General Shareholders' Meeting, which will be paid on 1 July
2021.
(4) Interim dividend of Euro 0.7 gross per share, paid out on 2 January 2020,
plus the final dividend of Euro 0,775 gross per share
paid on 1 July 2020.
(5) Consolidated Ordinary Pay-out (%) = (Gross Dividend per Share * Number of
Shares at Year-end) / Net Ordinary Income of the Parent.
(6) Consolidated Pay-out (%) = (Gross Dividend per Share * Number of Shares at
Year-end) / Profit/(loss) of the Parent.
(7) Pay-Out Individual (%) = (Gross Dividend per Share * Number of Shares at
Year-end) / Profit/(loss) of ENDESA, S.A.
9.3. Main Risks and Uncertainties.
During the first quarter of 2021, ENDESA followed the same general risk
management policy described in its Consolidated Financial Statements for the
year ended 31 December 2020.
In this context, the classification and measurement of financial instruments,
and the hedge transactions are the same as those described in these
Consolidated Financial Statements.
The information regarding the main risks and uncertainties associated with
ENDESA's activity is described in section 7 of the Consolidated Management
Report for the year ended 31 December 2020.
ANNEX I
Alternative Performance Measures (APMs)
This English-language version has been translated from the original issued in
Spanish by the entity itself and under its sole responsibility, and is not
considered official or regulated financial information. In the event of
discrepancy, the Spanish-language version prevails.
Alternative Performance Measures (APMs) Unit Definition Reconciliation of Alternative Performance Measures (APMs) Relevance of use
January – March 2021 January – March 2020
Gross Operating Income (EBITDA)( ) €M Income - Procurements and Services + Self-constructed assets - Personnel Euro 1,019 M= Euro 4,993 M - Euro 3,461 M Euro 1,476 M= Euro 5,069 M - Euro 3,455 M + Euro 47 M - Euro 144 M - Euro 329 Measure of operating return excluding interest, taxes, provisions and
Expenses - Other Fixed Operating Expenses.
+ Euro 41 M - Euro 235 M - Euro 319 M M amortisation
Operating Income (EBIT)( ) €M EBITDA - Depreciation and amortisation, and impairment losses. Euro 615 M = Euro 1,019 M - Euro 404 M Euro 1,118 M = Euro 1,476 M - Euro 358 M Measure of operating return excluding interest and taxes
Net Ordinary Income €M Net Ordinary Income = Net Income Attributable to the Parent - Net Income on Euro 491 M= Euro 491 M - Euro 0 M + Euro 0 M - Euro 0 M - Euro 0 M Euro 831 M= Euro 844 M - Euro 0 M + Euro 13 M - Euro 0 M - Euro 0 M Measure of profit for the period stripping out extraordinary items in excess
Sales of Non-Financial Assets (exceeding Euro 10 million - Net Impairment of Euro 10 million.
Losses on Non-Financial Assets (exceeding Euro 10 million) - Initial Net
Provision for Personnel Expenses for Workforce Restructuring Plans relating to
the Decarbonisation Plan and to Process Digitalisation - Net Expenses relating
to the Public Responsibility Plan for the COVID-19 Health Crisis.
Contribution margin( ) €M Revenue - Procurements and services Euro 1,532 M = Euro 4,993 M - Euro 3,461 M Euro 1,614 M = Euro 5,069 M - Euro 3,455 M Measure of operating returns considering direct variable production costs
Procurements and services( ) €M Energy Purchases + Fuel Consumption + Transport Expenses + Other Variable Euro 3,461 M = Euro 1,144 M + Euro 273 M + Euro 1,347 M + Euro 697 M Euro 3,455 M = Euro 1,040 M + Euro 352 M + Euro 1,312 M + Euro 751 M Goods and services for production
Procurements and Services
Net Financial Profit/(loss)( ) €M Financial Income - Financial Expense + Net Exchange Differences Euro 39 M = Euro 83 M - Euro 42 M - Euro 2 M Euro (10) M= Euro 31 M - Euro 39 M - Euro 2 M Measure of financial cost
Net Financial Expense €M Financial income - Financial expense Euro 41 M = Euro 83 M - Euro 42 M Euro (8) M = Euro 31 M - Euro 39 M Measure of financial cost
Net Investments €M Gross Investments - Grants related to Assets and Transferred Facilities Euro 250 M = Euro 283 M - Euro 33 M Euro 251 M = Euro 271 M - Euro 20 M Measure of investing activity
Return on equity % Net Ordinary Income attributable to the Parent / ((Equity of the Parent (n) + 18.10% = (Euro ((491-194) * 12 months / 3 months) M + Euro 194 M) ((1) )/ Euro 31.00% = (Euro ((831 – 267) * 12 months / 3 months) M + Euro 267 M)( )/ Euro Measure of the capacity to generate profits on shareholder investments
Equity of the Parent (n-1)) / 2)) ((7,954 + 7,315) / 2) M ((8,591 + 7,688) / 2) M
Return on assets % Net Ordinary Income of the Parent / Total Assets (n) + Total Assets (n-1) / 2) 4.27% = (Euro ((491-194) * 12 months / 3 months) M + Euro 194 M) ((1) )/ Euro 7.81% = (Euro ((831 – 267) * 12 months / 3 months) M + Euro 267 M)( )/ Euro Measure of business profitability
((32,627 + 32,062) / 2) M ((32,607 + 31,981) / 2) M
Economic profitability % Operating Income (EBIT) / ((PP&E (n) + PP&E (n-1)) / 2) 8.91% = (Euro ((615-188) * 12 months / 3 months) M + Euro 188 M) ((2) )/Euro 16.02% = (Euro ((1,118 - 356) * 12 months / 3 months) M + Euro 356 M) / Euro Measure of the capacity to generate income from invested assets or capital
((21,216 + 21,354) / 2) M ((21,166 + 21,329) / 2) M
Return on capital employed (ROCE) % Operating Income after Tax / ((Non-current Assets (n) + Non-current Assets 4.45% = (Euro ((465.3 - 141) * 12 months / 3 months) M + Euro 141 M) ((3)) / 8.11% = (Euro ((855.2 - 267) * 12 months / 3 months) M + Euro 267 M) / Euro Measure of the return on capital employed
(n-1)) / 2) + ((Current Assets (n) + Current Assets (n-1)) / 2) Euro ((25,804 + 25,828) / 2 + (6,820 + 6,234) / 2)) M ((25,787 + 25,881) / 2 + (6,820 + 6,100) / 2)) M
Return on Invested Capital (ROIC) % Operating Income after Tax / (Equity of the Parent + Net Financial Debt) 9.31% = Euro (((465.3-141) * 12 months / 3 months) M + Euro 141 M) ((3) )/ 16.41% = Euro (((855.2 - 267) * 12 months / 3 months) M + Euro 267 M) / (Euro Measure of the return on invested capital
(Euro 7,954 M +Euro 7,496 M) 8,591 M +Euro 7,376 M)
Funds from Operations €M Cash Flows from Operating Activities - Changes in Current Capital - Euro 953 M = Euro 583 M + Euro 411 M - Euro 41 M Euro 988 M = Euro 276 M + Euro 759 M - Euro 47 M Measure of the cash generated by the company's business available to make
Self-constructed Assets investments, repay debt and distribute dividends to shareholders
Interest Expenses €M Interest paid Euro 16 M Euro 13 M Measure of interest paid
Net ordinary earnings per share € Net Ordinary Income of the Parent / Number of Shares at the end of the Euro 0,464 = Euro 491 M / 1,058,752,117 shares Euro 0,785 = Euro 831 M / 1,058,752,117 shares Measure of the portion of net ordinary income corresponding to each share
Reporting Period outstanding
Net Earnings per Share( ) € Net Income of the Parent / Number of Shares at the end of the Reporting Period Euro 0,464 = Euro 491 M / 1,058,752,117 shares Euro 0,797 = Euro 844 M / 1,058,752,117 shares Measure of the portion of net income corresponding to each share outstanding
Cash Flow per Share( ) € Net Cash Flow of the Operating Activities / Shares at the close of the period Euro 0,551 = Euro 583 M / 1,058,752,117 shares Euro 0,261 = Euro 276 M / 1,058,752,117 shares Measure of the portion of funds corresponding to each share outstanding
M€ = millions of euros; € = euros.
n = 31 March of the year being calculated.
n-1 = 31 December of the year before the year being calculated.
(1) Annualised income, discounting the effects, net of the tax effect,
amounting to Euro 194 million, described in section 5.2. Analysis of results
in this Consolidated Management Report).
(2) Annualised income, discounting the effects, amounting to Euro 188 million,
described in section 5.2.1. Revenue of this Consolidated Management Report
(3) Annualised income, discounting the effects, net of the tax effect,
amounting to Euro 141 million, described in section 5.2.1. Revenue of this
Consolidated Management Report
Alternative Performance Measures (APMs) Unit Definition Reconciliation of Alternative Performance Measures (APMs) Relevance of use
31 March 2021 31 March 2020
Net financial debt( ) €M Non-current Financial Debt + Current Financial Debt – Cash and Cash Euro 7,496 M= Euro 5,908 M + Euro 2,069 M - Euro 474 M - Euro 7 M Euro 6,899 M = Euro 5,937 M + Euro 1,372 M - Euro 403 M - Euro 7 M Short and long-term financial debt, less cash and financial investment cash
Equivalents – Financial Derivatives recognised under Financial Assets equivalents
Sustainable Financing % Sustainable Gross Financial Debt / Gross Financial Debt 49% = Euro 3,907 M / Euro 7,977 M 45% = Euro 3.264 M / Euro 7,309 M Measure of the weight of gross financial debt with sustainability clauses over
total gross financial debt.
Leverage( ) % Net financial debt / Equity 92.47% = Euro 7,496 M / Euro 8,106 M 92.42% = Euro 6,899 M / Euro 7,465 M Measure of the weighting of external funds in the financing of business
activities
Debt Ratio( ) % Net financial debt / (Equity + Net financial debt) 48.05 = Euro 7,496 M / 48.03% = Euro 6,899 M / Measure of the weighting of external funds in the financing of business
activities
(Euro 8,106 M + Euro 7,496 M) (Euro 7,465 M + Euro 6,899 M)
Average Life of Gross Financial Debt Number of Years (Principal * Number of Valid Days) / (Valid Principal at the end of the 4.5 years = 36,047 / 7,947 4.6 years = 33,484 / 7,268 Measure of the duration of financial debt to maturity
Reporting Period * Number of Days in the Period)
Average Cost of Gross Financial Debt % (Cost of Gross Financial Debt) / Gross Average Financial Debt 1.7% = Euro ((33 * 12 months / 3 months) + Euro 4 M) M / Euro 8,240 M 1.7% = Euro 139 M / Euro 8,104 M Measure of the effective rate of financial debt
Debt Coverage Ratio Number of Months Maturity period (no. of months) for vegetative debt that could be covered with 35 months 17 months Measure of the capacity to meet debt maturities
the liquidity available
Liquidity Ratio( ) N/A Current assets / Current liabilities. 0.79 = Euro 6,820 M / Euro 8,593 M 0.73 = Euro 6,234 M / Euro 8,555 M Measure of the capacity to meet short term commitments
Solvency Ratio N/A (Equity + Non-Current liabilities) / Non-current assets 0.93 = (Euro 8,106 M + Euro 15,928 M) / Euro 25,807 M 0.91 = (Euro 7,465 M + Euro 16,042 M) / Euro 25,828 M Measure of the capacity to meet obligations
Debt Coverage Ratio N/A Net financial debt / EBITDA 2.13 = Euro 7,496 M / ( Euro ((1,019 - 188) * 12 months / 3 months) M + Euro 1.82 = Euro 6,899 M / Euro 3,783 M Measure of the amount of available cash flow to meet payments of principal on
188 M)( (1) ) financial debt
Fixed assets €M Property, Plant and Equipment + Investment Property + Intangible Assets + Euro 23,180 M = Euro 21,216 M + Euro 57 M + Euro 1,445 M + Euro 462 M Euro 23,273 M = Euro 21,354 M + Euro 58 M + Euro 1,399 M + Euro 462 M Tangible or intangible assets of the Company, not convertible into liquid
Goodwill assets at short term, necessary for the functioning of the Company and not
earmarked for sale
Total Net Non-Current Assets €M Property, Plant and Equipment + Intangible Assets +Goodwill +Investments Euro 19,078 M = Euro 21,216 M + Euro 1,445 M + Euro 462 M + Euro 223 M + Euro 19,082 M = Euro 21,354 M Measurement of non-current assets excluding deferred tax assets less the value
Accounted for by the Equity Method +Real Estate Investments +Non-Current 57 M + Euro 1,046 M - Euro 4,509 M
+ Euro 1,399 M + Euro 462 M of deferred income and other non-current liabilities.
Financial Assets -Deferred Income -Other Non-Current Liabilities -Financial
- Euro 855 M - Euro 7 M
+ Euro 217 M + Euro 58 M
Derivatives recorded under Non-Current Financial Assets
+ Euro 947 M - Euro 4,517 M
- Euro 831 M - Euro 7 M
Total Net Working Capital €M Trade and other receivables + Inventories + Current Financial Assets - Euro 380 M = Euro 3,653 M + Euro 1,120 M + Euro 1,127 M - Euro 0 M + Euro 446 Euro (875) M = Euro 3,151 M + Euro 1,077 M + Euro 1,177 M - Euro 0 M + Euro Measurement of current assets excluding cash and cash equivalent financial
Financial Derivatives recorded in Current Financial Assets + Current Corporate M - Euro 674 M - Euro 5,292 M 426 M - Euro 512 M - Euro 6,194 M investments less value of suppliers and other creditors and current corporate
Income Tax Assets - Current Corporate Income Tax Liabilities -Suppliers and income tax liabilities
other Creditors
Gross Invested Capital €M Total Net Non-Current Assets + Total Net Current Assets + Total Net Working Euro 19,458 M = Euro 19,078 M + Euro 380 M Euro 18,207 M = Euro 19,082 M Total net non-current assets plus total net working capital
Capital
+ (875) M
Net Invested Capital €M Gross Invested Capital - Provisions for Pensions and Similar Obligations - Euro 15,602 M = Euro 19,458 M - Euro 698 M - Euro 2,877 M - Euro 558 M + Euro Euro 14,364 M = Euro 18,207 M - Euro 701 M - Euro 3,003 M - Euro 477 M Measure of gross invested capital less provisions and deferred tax assets and
Other Non-Current Provisions - Current Provisions + Deferred Tax Assets - 1,358 M
+ Euro 1,391 M - Euro 1,053 M + Euro 0 M liabilities
Deferred Tax Liabilities + Net Non-Current Assets Held for Sale and from
- Euro 1,081 M + Euro 0 M
Discontinued Operations
Carrying Amount per Share € Equity of the Parent / Number of shares at the end of the reporting period Euro 7,513 = Euro 7,954 M / 1,058,752,117 shares Euro 6,909 = Euro 7,315 M / 1,058,752,117 shares Measure of the portion of own funds corresponding to each share outstanding
Market capitalisation €M Number of Shares at the end of the Reporting Period * Price at the end of the Euro 23,885 M = 1,058,752,117 shares * Euro 22,560 Euro 23,663 M = 1,058,752,117 shares * Euro 22,350 Measure of the Company's market value according to the share price
Reporting Period
Price to Earnings Ratio (P.E.R.) Ordinary N/A Price at the end of the Reporting Period / Net Ordinary Earnings per Share 17.26 = Euro 22,560 / (((0,464 – 0,183) * 12 months / 3 months) + 0,183) 11.10 = 22,350 € / 2,0136 € Measure indicating the number of times net ordinary earnings per share can be
((2)) divided into the market price of the shares
Price to Earnings Ratio (P.E.R.) N/A Share price at the end of the reporting period / Net earnings per share 17.26 = Euro 22,560 / (((0,464 – 0,183) * 12 months / 3 months) + 0,183) 16.97 = 22,350 € / 1,317 € Measure indicating the number of times net earnings per share can be divided
((2)) into the market price of the shares
Price / Carrying amount N/A Market capitalisation / Equity of the Parent 3.00 = Euro 23,885 M / Euro 7,954 M 3.23 = Euro 23,663 M / Euro 7,315 M Measure comparing the Company's market value according to the share price with
the carrying amount.
2020 2019
Consolidated ordinary Pay-out % (Gross Dividend per Share * Number of Shares at the end of the Reporting 100.0% = (Euro 2,0136 * 1,058,752,117 shares) / Euro 2,132 M 100.0% = (Euro 1,475 * 1,058,752,117 shares) / Euro 1,562 M Measure of the part of ordinary income obtained used to remunerate
Period) / Net Ordinary Income of the Parent. shareholders through the payment of dividends (consolidated Group)
Consolidated Pay-Out % Gross Dividend per Share * Number of Shares at the end of the Reporting 152.9% = (Euro 2,0136 * 1,058,752,117 shares) / Euro 1,394 M 913.3% = (Euro 1,475 * 1,058,752,117 shares) / Euro 171 M Measure of the part of profits obtained used to remunerate shareholders
Period) / Profit for the Year of the Parent through the payment of dividends (consolidated Group)
Individual Pay-Out % (Gross Dividend per Share * Number of Shares at the end of the Reporting 91.5% = (Euro 2,0136 * 1,058,752,117 shares) / Euro 2,330 M 95.1% = (Euro 1,475 * 1,058,752,117 shares) / Euro 1,642 M Measure of the part of profits obtained used to remunerate shareholders
Period / Profit for the Year of the ENDESA, S.A. through the payment of dividends (individual company)
M€ = millions of euros; € = euros.
(1) Annualised income, discounting the effects, amounting to Euro 188 million,
described in section 5.2.1. Revenue of this Consolidated Management Report
(2) Annualised income, discounting the effects, net of the tax effect,
amounting to Euro 194 million, described in section 5.2. Analysis of results
in this Consolidated Management Report).
ANNEX II
Consolidated Financial Statements
for the three-month period ended
31 March 2021
This English-language version has been translated from the original issued in
Spanish by the entity itself and under its sole responsibility, and is not
considered official or regulated financial information. In the event of
discrepancy, the Spanish-language version prevails.
ENDESA, S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AT 31 MARCH 2021 AND 31 DECEMBER 2020
Millions of Euros
31 March 31 December
2021 ((1))
2020 ((2))
ASSETS
NON-CURRENT ASSETS 25,807 25,828
Property, plant and equipment 21,216 21,354
Investment property 57 58
Intangible Assets 1,445 1,399
Goodwill 462 462
Investments accounted for using the equity method 223 217
Non-current financial assets 1,046 947
Deferred tax assets 1,358 1,391
CURRENT ASSETS 6,820 6,234
Inventories 1,120 1,077
Trade and other receivables 4,099 3,577
Trade and other receivables 3,653 3,151
Current income tax assets 446 426
Current financial assets 1,127 1,177
Cash and cash equivalents 474 403
Non-current assets held for sale and discontinued operations - -
TOTAL ASSETS 32,627 32,062
EQUITY AND LIABILITIES
EQUITY 8,106 7,465
Of the Parent 7,954 7,315
Share capital 1,271 1,271
Share premium and reserves 6,120 5,467
(Treasury Shares) (2) (2)
Profit for the Period attributed to the Parent 491 1,394
Interim dividend - (741)
Valuation adjustments 74 (74)
Of Non-controlling Interests 152 150
NON-CURRENT LIABILITIES 15,928 16,042
Deferred income 4,509 4,517
Non-current provisions 3,575 3,704
Provisions for Pensions and Similar Obligations 698 701
Other non-current provisions 2,877 3,003
Non-current financial debt 5,908 5,937
Other non-current liabilities 855 831
Deferred tax liabilities 1,081 1,053
CURRENT LIABILITIES 8,593 8,555
Current financial debt 2,069 1,372
Current provisions 558 477
Provisions for Pensions and Similar Obligations - -
Other current provisions 558 477
Trade payables and other current liabilities 5,966 6,706
Suppliers and other payables 5,292 6,194
Current income tax liabilities 674 512
Liabilities associated with non-current assets classified as held for sale and - -
discontinued operations
TOTAL EQUITY AND LIABILITIES 32,627 32,062
(1) Unaudited.
(2) Audited.
ENDESA, S.A. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
FOR THE PERIODS JANUARY – MARCH 2021 AND 2020
Millions of Euros
January - March January - March
2021 ((1))
2020 ((1))
REVENUE 4,993 5,069
Sales 4,658 4,580
Other operating income 335 489
PROCUREMENTS AND SERVICES (3,461) (3,455)
Energy Purchases (1,144) (1,040)
Fuel Consumption (273) (352)
Transport Expenses (1,347) (1,312)
Other Variable Procurements and Services (697) (751)
CONTRIBUTION MARGIN 1,532 1,614
Self-constructed assets 41 47
Personnel expenses (235) 144
Other fixed operating expenses (319) (329)
GROSS OPERATING INCOME 1,019 1,476
Depreciation and Amortisation and Impairment Losses (404) (358)
PROFIT FROM OPERATIONS 615 1,118
FINANCIAL PROFIT/(LOSS) 39 (10)
Financial Income 83 31
Financial Expense (42) (39)
Net Exchange Differences (2) (2)
Gains/(losses) of Companies Accounted for using the Equity Method 5 4
Gains/(losses) from other investments - -
Gains/(losses) on disposal of assets (6) (6)
PROFIT BEFORE TAX 653 1,106
Income tax (159) (260)
PROFIT AFTER TAX FOR THE PERIOD FROM CONTINUING OPERATIONS 494 846
PROFIT AFTER TAX FOR THE PERIOD FROM DISCONTINUED OPERATIONS - -
PROFIT FOR THE PERIOD 494 846
Parent company 491 844
Non-controlling interests 3 2
BASIC NET EARNINGS PER SHARE FOR CONTINUING OPERATIONS (Euros) 0.46 0.80
DILUTED NET EARNINGS PER SHARE FOR CONTINUING OPERATIONS (Euros) 0.46 0.80
BASIC NET EARNINGS PER SHARE FOR DISCONTINUED OPERATIONS (Euros) - -
DILUTED NET EARNINGS PER SHARE FOR DISCONTINUED OPERATIONS (Euros) - -
BASIC NET EARNINGS PER SHARE (Euros) 0.46 0.80
DILUTED NET EARNINGS PER SHARE (Euros) 0.46 0.80
(1) Unaudited data.
ENDESA, S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS JANUARY – MARCH 2021 AND 2020
Millions of Euros
January - March January - March
2021 ((1))
2020 ((1))
Profit before tax and non-controlling interests 653 1,106
Adjustments for: 422 (82)
Depreciation and amortisation, and impairment losses 404 358
Other adjustments (net) 18 (440)
Changes in current capital: (411) (759)
Trade and other receivables (203) (57)
Inventories (177) (219)
Current financial assets 27 (166)
Trade payables and other current liabilities (58) (317)
Other cash flows from operating activities: (81) 11
Interest received 5 4
Dividends received 1 1
Interest paid (16) (13)
Income tax paid (2) 74
Other receipts from and payments for operating activities (69) (55)
NET CASH FLOWS FROM OPERATING ACTIVITIES 583 276
Acquisitions of Property, Plant and Equipment and Intangible Assets (392) (409)
Proceeds from sale of property, plant and equipment and intangible assets 2 1
Investments in Group companies (20) -
Proceeds from sale of Investments in Group companies - -
Purchase of other investments (59) (116)
Proceeds from sale of other investments 6 1
Cash flows from changes in the consolidation scope - -
Grants and other deferred income 18 15
NET CASH FLOWS FROM INVESTING ACTIVITIES (445) (508)
Cash Flows from Equity Instruments 3 -
Drawdowns of Non-current financial debt 32 350
Repayment of non-current financial debt (3) (2)
Net cash flows used in current financial debt 645 598
Dividends of the Parent Paid (741) (741)
Dividends paid to Non-controlling Interests (3) (5)
NET CASH FLOWS FROM FINANCING ACTIVITIES (67) 200
TOTAL NET CASH FLOWS 71 (32)
Effect of exchange rate fluctuations on cash and cash equivalents - -
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 71 (32)
CASH AND CASH EQUIVALENTS AT 1 JANUARY 403 223
Cash in hand and at banks 403 223
Cash equivalents - -
CASH AND CASH EQUIVALENTS AT 31 MARCH 474 191
Cash in hand and at banks 474 191
Cash equivalents - -
(1) Unaudited data.
ENDESA, S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME FOR THE
FOR THE PERIODS JANUARY – MARCH 2021 AND 2020
Millions of Euros
January - March January - March
2021 ((1))
2020 ((1))
Of the Parent Of non-controlling interests Total Of the Parent Of non-controlling interests Total
PROFIT FOR THE PERIOD 491 3 494 844 2 846
OTHER COMPREHENSIVE INCOME:
INCOME AND EXPENSES RECOGNISED DIRECTLY IN EQUITY 123 - 123 (7) - (7)
Items that can be Reclassified to Profit or Loss: 123 - 123 (17) - (17)
Cash flow hedges 160 - 160 (19) - (19)
Translation differences - - - (1) - (1)
Companies accounted for using the Equity Method 4 - 4 (1) - (1)
Other Income and Expense recognised directly in Equity - - - - - -
Tax Effect (41) - (41) 4 - 4
Items that cannot be reclassified to profit or loss: - - - 10 - 10
From revaluation/(reversal of revaluation) of property, plant and equipment - - - - - -
and intangible assets
From measurement of financial instruments - - - - - -
Financial Assets at Fair Value - - - - - -
Other income/(Expenses) - - - - - -
Actuarial gains and losses and other adjustments - - - 13 - 13
Tax effect - - - (3) - (3)
AMOUNTS TRANSFERRED TO INCOME STATEMENT AND/OR INVESTMENTS 25 - 25 66 - 66
Cash flow hedges 33 - 33 87 - 87
Translation differences - - - - - -
Companies accounted for using the equity method - - - - - -
Other income and expense recognised directly in equity - - - - - -
Tax Effect (8) - (8) (21) - (21)
TOTAL COMPREHENSIVE INCOME 639 3 642 903 2 905
(1) Unaudited data.
ENDESA, S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR
THE PERIOD JANUARY – MARCH 2021
Millions of Euros
Equity attributable to the Parent ((1)) Non-controlling Interests Total Equity
Capital and reserves V
a
l
u
a
t
i
o
n
a
d
j
u
s
t
m
e
n
t
s
Capital Share premium, reserves and interim dividend Treasury shares Profit/(loss) for the period Other equity instruments
Balance at 1 January 2021 1,271 4,726 (2) 1,394 - (74) 150 7,465
Adjustments due to changes in accounting policies - - - - - - - -
Corrections of errors - - - - - - - -
Adjusted balance at 1 January 1,271 4,726 (2) 1,394 - (74) 150 7,465
Total comprehensive income - - - 491 - 148 3 642
Transactions with shareholders or owners - - - - - - (1) (1)
Capital Increases/(reductions) - - - - - - (1) (1)
Conversion of liabilities into equity - - - - - - - -
Dividends paid - - - - - - - -
Transactions with Own Equity Instruments (net) - - - - - - - -
Increases/(reductions) due to Business Combinations - - - - - - - -
Other transactions with Shareholders or Owners - - - - - - - -
Other Changes in Equity - 1,394 - (1,394) - - - -
Share-based Payments - - - - - - - -
Transfers between Equity Items - 1,394 - (1,394) - - - -
Other Changes - - - - - - - -
End Balance at 31 March 2021 1,271 6,120 (2) 491 - 74 152 8,106
(1) Unaudited.
ENDESA, S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR
THE PERIOD JANUARY – MARCH 2020
Millions of Euros
Equity attributable to the Parent ((1)) Non-controlling Interests Total equity
Capital and reserves V
a
l
u
a
t
i
o
n
a
d
j
u
s
t
m
e
n
t
s
Capital Share premium, reserves and interim dividend Treasury shares Profit/(loss) for the period Other equity instruments
Balance at 1 January 2020 1,271 6,187 - 171 59 149 7,837
Adjustments due to changes in accounting policies - - - - - - - -
Corrections of errors - - - - - - - -
Adjusted balance at 1 January 1,271 6,187 - 171 - 59 149 7,837
Total comprehensive income - 10 844 - 49 2 905
Transactions with shareholders or owners - - - - - - - -
Capital Increases/(reductions) - - - - - - - -
Conversion of liabilities into equity - - - - - - - -
Dividends paid - - - - - - - -
Transactions with Own Equity Instruments (net) - - - - - - - -
Increases/(reductions) due to Business Combinations - - - - - - - -
Other transactions with Shareholders or Owners - - - - - - - -
Other Changes in Equity - 171 - (171) - - - -
Share-based Payments - - - - - -
Transfers between Equity Items - 171 - (171) - - - -
Other changes - - - - - -
End Balance at 31 March 2020 1,271 6,368 844 108 151 8,742
(1) Unaudited.
ENDESA, S.A. AND SUBSIDIARIES
BREAKDOWN CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AT 31 MARCH 2021
Millions of Euros
31 March 2021 ((1))
Generation and Supply Distribution Structure Consolidated adjustments and eliminations Total
ASSETS
Non-current assets 12,982 13,398 29,711 (30,284) 25,807
Property, plant and equipment 9,086 11,953 177 - 21,216
Investment property - 52 5 - 57
Intangible assets 1,143 187 115 - 1,445
Goodwill 361 97 4 - 462
Investments accounted for using the equity method 198 21 4 - 223
Non-current financial assets 1,287 788 29,260 (30,289) 1,046
Deferred tax assets 907 300 146 5 1,358
Current assets 5,629 1,090 985 (884) 6,820
Inventories 987 133 - - 1,120
Trade and other receivables 3,755 558 657 (871) 4,099
Current financial assets 718 398 24 (13) 1,127
Cash and cash equivalents 169 1 304 - 474
Non-current assets held for sale and discontinued operations - - - - -
TOTAL ASSETS 18,611 14,488 30,696 (31,168) 32,627
EQUITY AND LIABILITIES
Equity 6,011 2,738 18,218 (18,861) 8,106
Of the Parent 5,867 2,730 18,218 (18,861) 7,954
Of Non-controlling Interests 144 8 - - 152
Non-Current liabilities 8,058 9,300 9,970 (11,400) 15,928
Deferred income 46 4,554 - (91) 4,509
Non-current provisions 2,294 907 318 56 3,575
Non-current financial debt 4,623 3,087 9,559 (11,361) 5,908
Other non-current liabilities 376 478 32 (31) 855
Deferred tax liabilities 719 274 61 27 1,081
Current Liabilities 4,542 2,450 2,508 (907) 8,593
Current financial debt 158 8 1,948 (45) 2,069
Current Provisions 407 92 59 - 558
Trade payables and other current liabilities 3,977 2,350 501 (862) 5,966
Liabilities Associated with Non-current Assets Classified as held for Sale and - - - - -
Discontinued Operations
TOTAL EQUITY AND LIABILITIES 18,611 14,488 30,696 (31,168) 32,627
(1) Unaudited data.
ENDESA, S.A. AND SUBSIDIARIES
BREAKDOWN CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AT 31 DECEMBER 2020
Millions of Euros
31 December 2020 ((1))
Generation and Supply Distribution Structure Consolidated adjustments and eliminations Total
ASSETS
Non-current assets 13,046 13,420 29,814 (30,452) 25,828
Property, plant and equipment 9,191 11,983 180 - 21,354
Investment property - 52 6 - 58
Intangible assets 1,092 183 124 - 1,399
Goodwill 361 97 4 - 462
Investments accounted for using the equity method 194 20 3 - 217
Non-current financial assets 1,285 777 29,341 (30,456) 947
Deferred tax assets 923 308 156 4 1,391
Current assets 4,859 1,353 1,236 (1,214) 6,234
Inventories 957 120 - - 1,077
Trade and other receivables 3,089 717 973 (1,202) 3,577
Current financial assets 652 515 22 (12) 1,177
Cash and cash equivalents 161 1 241 - 403
Non-current assets held for sale and discontinued operations - - - - -
TOTAL ASSETS 17,905 14,773 31,050 (31,666) 32,062
EQUITY AND LIABILITIES
Equity 5,542 2,512 18,224 (18,813) 7,465
Of the Parent 5,400 2,504 18,224 (18,813) 7,315
Of Non-controlling Interests 142 8 - - 150
Non-Current liabilities 7,913 9,600 10,143 (11,614) 16,042
Deferred income 43 4,564 - (90) 4,517
Non-current provisions 2,375 933 341 55 3,704
Non-current financial debt 4,459 3,348 9,657 (11,527) 5,937
Other non-current liabilities 353 476 80 (78) 831
Deferred tax liabilities 683 279 65 26 1,053
Current liabilities 4,450 2,661 2,683 (1,239) 8,555
Current financial debt 129 8 1,277 (42) 1,372
Current provisions 343 83 51 - 477
Trade payables and other current liabilities 3,978 2,570 1,355 (1,197) 6,706
Liabilities Associated with Non-current Assets Classified as held for Sale and - - - - -
Discontinued Operations
TOTAL EQUITY AND LIABILITIES 17,905 14,773 31,050 (31,666) 32,062
(1) Audited.
ENDESA, S.A. AND SUBSIDIARIES
BREAKDOWN CONSOLIDATED INCOME STATEMENTS FOR
THE PERIOD JANUARY – MARCH 2021
Millions of Euros
January-March 2021 ((1))
Generation and Supply Distribution Structure Consolidated adjustments and eliminations Total
REVENUE 4,398 641 105 (151) 4,993
Sales 4,115 579 105 (141) 4,658
Other operating income 283 62 - (10) 335
PROCUREMENTS AND SERVICES (3,444) (44) (11) 38 (3,461)
Energy Purchases (1,142) (2) - - (1,144)
Fuel Consumption (273) - - - (273)
Transport Expenses (1,344) (3) - - (1,347)
Other Variable Procurements and Services (685) (39) (11) 38 (697)
CONTRIBUTION MARGIN 954 597 94 (113) 1,532
Self-constructed assets 16 25 - - 41
Personnel expenses (125) (67) (47) 4 (235)
Other fixed operating expenses (290) (79) (57) 107 (319)
GROSS OPERATING INCOME/(LOSS) 555 476 (10) (2) 1,019
Depreciation and Amortisation and Impairment Losses (227) (162) (15) - (404)
OPERATING INCOME/(LOSS) 328 314 (25) (2) 615
FINANCIAL PROFIT/LOSS 51 (15) 3 - 39
Financial income 77 2 219 (215) 83
Financial expense (25) (17) (215) 215 (42)
Net Exchange Differences (1) - (1) - (2)
Gains/(losses) of Companies Accounted for using the Equity Method 4 1 - - 5
Gains/(losses) from other investments - - - - -
Gains/(losses) on disposal of assets (7) - 1 - (6)
PROFIT/(LOSS) BEFORE TAX 376 300 (21) (2) 653
Income tax (90) (73) 4 - (159)
PROFIT/(LOSS) AFTER TAX FOR THE PERIOD FROM CONTINUING OPERATIONS 286 227 (17) (2) 494
PROFIT/(LOSS) AFTER TAX FOR THE PERIOD FROM DISCONTINUED OPERATIONS - - - - -
PROFIT/(LOSS) FOR THE PERIOD 286 227 (17) (2) 494
Parent company 283 227 (17) (2) 491
Non-controlling interests 3 - - - 3
(1) Unaudited data.
ENDESA, S.A. AND SUBSIDIARIES
BREAKDOWN CONSOLIDATED INCOME STATEMENTS FOR
THE PERIOD JANUARY – MARCH 2020
Millions of Euros
January-March 2020 ((1))
Generation and Supply Distribution Structure Consolidated adjustments and eliminations Total
REVENUE 4,459 656 135 (181) 5,069
Sales 4,023 592 130 (165) 4,580
Other operating income 436 64 5 (16) 489
PROCUREMENTS AND SERVICES (3,343) (43) (9) 40 3,455
Energy Purchases (1,038) (2) - - (1,040)
Fuel Consumption (352) - - - (352)
Transport Expenses (1,309) (3) - - (1,312)
Other Variable Procurements and Services (744) (38) (9) 40 (751)
CONTRIBUTION MARGIN 1,016 613 126 (141) 1,614
Self-constructed assets 15 29 3 - 47
Personnel expenses 72 118 (47) 1 144
Other fixed operating expenses ((5)) (304) (93) (72) 140 (329)
GROSS OPERATING INCOME/(LOSS) 799 667 10 - 1,476
Depreciation and Amortisation and Impairment Losses (185) (159) (14) - (358)
OPERATING INCOME/(LOSS) 614 508 (4) - 1,118
FINANCIAL PROFIT/LOSS (13) (6) 9 - (10)
Financial income 17 10 179 (175) 31
Financial expense (27) (16) (171) 175 (39)
Net Exchange Differences (3) - 1 - (2)
Gains/(losses) of Companies Accounted for using the Equity Method 4 - - - 4
Gains/(losses) from other investments - - - - -
Gains/(losses) on disposal of assets (6) - - - (6)
PROFIT/(LOSS) BEFORE TAX 599 502 5 - 1,106
Income tax (133) (123) (4) - (260)
PROFIT/(LOSS) AFTER TAX FOR THE PERIOD FROM CONTINUING OPERATIONS 466 379 1 - 846
PROFIT/(LOSS) AFTER TAX FOR THE PERIOD FROM DISCONTINUED OPERATIONS - - - - -
PROFIT/(LOSS) FOR THE PERIOD 466 379 1 - 846
Parent company 464 379 1 - 844
Non-controlling interests 2 - - - 2
(1) Unaudited data.
You will find additional information on our 1Q 2021 Results on our website
www.endesa.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.endesa.com&esheet=52424222&newsitemid=20210505005975&lan=en-US&anchor=www.endesa.com&index=1&md5=db2870ed791dcdc5cb0d98dd1de89a9e)
View source version on businesswire.com:
https://www.businesswire.com/news/home/20210505005975/en/
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