REG-International Endesa Final Results <Origin Href="QuoteRef">ELE.MC</Origin> - Part 2
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Personnel expenses Other fixed operating expenses
2017((3)) 2016 % Var. % Contribution to Total 2017 ((3)) 2016 % Var. % Contribution to Total
Generation and supply 470 544 (13.6) 51.3 965 958 0.7 77.1
Non-mainland Territories generation (TNP) 84 91 (7.7) 9.2 159 160 (0.6) 12.7
Other generation and supply ((1)) 386 453 (14.8) 42.1 812 804 1.0 64.9
Adjustments - - - - (6) (6) - (0.5)
Distribution 255 321 (20.6) 27.8 394 396 (0.5) 31.5
Structure and other ((2)) 192 263 (27.0) 20.9 (108) (145) (25.5) (8.6)
TOTAL 917 1,128 (18.7) 100.0 1,251 1,209 3.5 100.0
(1) In 2017, this included personnel expenses and other fixed operating
expenses of ENEL Green Power España, S.L.U. (EGPE) for the amount of Euros 15
million and Euros 60 million respectively (Euros 7 million and Euros 22
million respectively in 2016 from the takeover date of 27 July 2016) (see
Section 2.4. Consolidation Scope in this Consolidated Management Report).
(2) Structure, services and adjustments.
(3) Adjusted the amount of Work carried out by the Group for its assets under
the headings Personnel Expenses and Other Fixed Operating Expenses for the
amount of Euros 20 million and Euros 68 million, respectively, as a result of
the acquisition of the systems and telecommunications activity (ICT) (see
section 2.5. Acquisition of the systems and telecommunications activity (ICT)
in this Consolidated Management Report).
Generation and Supply segment.
In 2017, EBITDA for this segment was Euros 1,350 million (+27.0%). The
following factors must be taken into account when looking at EBITDA for 2017:
* The 16.7% in the contribution margin.
* Provisions of Euros 5 million and Euros 74 million recognised for voluntary
departure agreements in 2017 and 2016, respectively.
* Updates of provisions for workforce restructuring and contract suspension
agreements in both years for Euros 10 million and Euros 3 million
respectively.
* The incorporation of ENEL Green Power España, S.L.U. (EGPE) for the amount of
Euros 181 million and Euros 75 million, respectively (see Section 2.4.
Consolidation Scope in this Consolidated Management Report).
Distribution segment.
In 2017, EBITDA for this segment was Euros 2,050 million (+14.7%), including:
* The positive performance of the contribution margin (+8%) due to the estimate
of income recognised for the remuneration of distribution for 2017 (see
Section 3. Regulatory Framework in this Consolidated Management Report).
* The reduction in personnel expenses in 2017 (-20.6%) due to the reduction of
the average workforce in the business unit (-8.8%), the Euros 57 million
decrease in the provisions for workforce optimisation projects and their
updates (Euros 2 million and Euros 12 million, respectively).
* The containment of other fixed operating expenses in 2017 (-0.5%) due to the
projects underway to improve quality and efficiency.
Structure and Other.
In 2017, EBITDA for the Structure and Other was Euros 142 million, including:
* The positive performance of the contribution margin, which increased by Euros
205 million due to the lower expense recognised for the Social Bonus (see
Section 3. Regulatory Framework in this Consolidated Management Report).
* The provisions recognised in 2017 and 2016 for the different workforce
optimisation plans (Euros 14 million and Euros 95 million, respectively), and
the updates made for both years (Euros 15 million and Euros 2 million,
respectively).
2.3.3. EBIT.
The table below presents the EBIT of ENDESA's business units in 2017 and
variations compared with the previous year:
Millions of Euros
EBIT ((3))
2017 2016 % Var. % Contribution to Total
Generation and supply 488 1,065 (54.2) 24.0
Non-mainland Territories generation (TNP) 285 246 15.9 14.0
Other generation and supply ((1)) 203 819 (75.2) 10.0
Adjustments - - - -
Distribution 1,453 1,131 28.5 71.5
Structure and other ((2)) 90 (231) (139.0) 4.5
TOTAL 2,031 1,965 3.4 100.0
(1) In 2017, this includes the EBIT generated by ENEL Green Power
España, S.L.U (EGPE) for the amount of Euros 74 million (Euros 16
million in 2016 from the takeover date of 27 July 2016) (see Section
2.4. Consolidation Scope in this Consolidated Management Report).
(2) Structure, Services and Adjustments.
(3) EBIT = EBITDA - Depreciation and amortisation and impairment losses.
Generation and Supply segment.
In 2017, EBIT for the Generation and Supply segment was Euros 488 million
(-54.2%), including among others:
* The decrease of 27% in EBITDA.
* The Euros 76 million reduction in the depreciation and amortisation expense
due to the modification of estimated useful lives of hydro, wind power and
solar power facilities.
* The contribution of the full consolidation of ENEL Green Power España, S.L.U.
(EGPE) for the amount of Euros 74 million, including the effect of changing
the useful service life of the renewable plants mentioned in the previous
paragraph (Euros 16 million in 2016 since the takeover date of 27 July 2016)
(see Section 2.4. Consolidation Scope in this Consolidated Management Report).
* The Euros 59 million increase in the net impairment allowance for trade bad
debts.
Distribution segment.
EBIT for the Distribution segment in 2017 grew by Euros 322 million
year-on-year (+28.5%), mainly as a result of the 14.7% rise in EBITDA.
This performance includes a variation of Euros 43 million relating to net
impairment allowances for land arising from appraisals performed by third
parties.
Structure and Other.
EBIT for the Structure and Other totalled Euros 321 million in 2017, up by
Euros 321 million against the previous year. This performance includes:
* The Euros 348 million rise in EBITDA.
* The Euros 18 million increase (+83.3%) in the depreciation and amortisation
charge due to the inclusion of the systems and telecommunications activity
(ICT) (see Section 2.5. Acquisition of the systems and telecommunications
activity (ICT) in this Consolidated Management Report).
The breakdown of depreciation and impairment losses in ENDESA’s businesses
in 2017 and the year-on-year change are as follows:
Millions of Euros
Depreciation and amortisation, and impairment losses
2017 2016 % Var. % Contribution to Total
Generation and supply 862 785 9.8 57.1
Non-mainland Territories generation (TNP) 167 143 16.8 11.1
Other generation and supply ((1)) 695 642 8.3 46.0
Adjustments - - - -
Distribution 597 657 (9.1) 39.5
Structure and other ((2)) 52 25 108.0 3.4
TOTAL 1,511 1,467 3.0 100.0
(1) In 2017 this includes the depreciation and amortisation and
impairment losses of ENEL Green Power España, S.L.U. (EGPE) for the
amount of Euros 107 million (Euros 59 million in 2016 since the
takeover date of 27 July 2016) (see Section 2.4. Consolidation Scope
in this Consolidated Management Report).
(2) Structure, services and adjustments.
2.4. Consolidation scope.
Eléctrica de Jafre, S.A.
On 31 May 2017 ENDESA Red, S.A.U. acquired 52.54% of the share capital of
Eléctrica de Jafre, S.A., whose activity entails electricity transmission and
distribution, and the lease and reading of water and electricity meters.
ENDESA Red, S.A.U. previously held 47.46% in this company. As a result of this
transaction ENDESA went from having significant influence to full control of
Eléctrica de Jafre, S.A. thereby strengthening its distribution activity (see
Note 5.2 of the Notes to the Consolidated Financial Statements for the year
ended 31 December 2017).
The net cash outflow arising from the acquisition of Eléctrica de Jafre, S.A.
amounted to Euros 1 million, corresponding mainly to the price agreed in the
transaction.
The purchase price was finally assigned, on the basis of the fair value of the
assets acquired and the liabilities undertaken (Net Assets Acquired) from
Eléctrica de Jafre, S.A., under the following headings in the Consolidated
Financial Statements:
Millions of Euros
Fair Value
Non-current assets 4
Property, plant & equipment 4
TOTAL ASSETS 4
Non-current liabilities 1
Deferred income 1
Current liabilities 1
Trade and other payables 1
TOTAL LIABILITIES 2
Fair value of net assets acquired 2
When determining the fair value of the assets acquired and the liabilities
assumed, the expected discounted cash flows were taken into consideration in
line with the remuneration system in force at the acquisition date.
In 2017, ordinary income and profit after taxes generated by the company from
the acquisition date of 31 May 2017 were insignificant. Additionally, had the
acquisition taken place on 1 January 2017, ordinary income and profit after
taxes generated from this transaction during 2017 would have amounted to less
than Euros 1 million.
The net gain at the date control was obtained from the measurement at fair
value of the previously held non-controlling interest of 47.46% in Eléctrica
de Jafre, S.A. was less than Euros 1 million.
Corporate transactions related to capacity awarded in renewable power
auctions.
As a result of the capacity auctions, which took place on 17 May 2017 and 26
July 2017, ENDESA, through ENEL Green Power España, S.L.U. (EGPE) was awarded
540 MW of wind capacity and 339 MW of photovoltaic capacity, respectively (see
Notes 3 and 4.5), formalised through the following corporate transactions (see
Section 3. Regulatory Framework and 4.5.: Investments in this Consolidated
Management Report):
* Formation, on 2 November 2017, of a new company called Explotaciones Eólicas
Santo Domingo de Luna, S.A. (wind technology) with a percentage stake of 51%.
* Acquisition of the following companies:
Acquisition date Technology Percentage stake at 31 December 2017
Control
Seguidores Solares Planta 2, S.L.U. 23 November 2017 Photovoltaic 100.00
Baylio Solar, S.L.U. 15 December 2017 Photovoltaic 100.00
Dehesa de los Guadalupes Solar, S.L.U. 15 December 2017 Photovoltaic 100.00
Furatena Solar 1, S.L.U. 15 December 2017 Photovoltaic 100.00
The price agreed for all these transactions was Euros 5 million, with a total
net cash outflow of Euros 1 million (see Note 5.3 to the Consolidated
Financial Statements for the year ended 31 December 2017).
ENDESA has recognised the acquisition of these companies as a business
combination, and using the acquisition method, has definitely recognised the
acquired assets and assumed liabilities (net acquired assets) of each one at
fair value on its acquisition date under the following income statement
headings:
Millions of Euros
Fair value
Non-current assets 6
Property, plant & equipment 6
TOTAL ASSETS 6
Non-current liabilities 1
Deferred tax liabilities 1
TOTAL LIABILITIES 1
Fair value of net assets acquired 5
Both the newly formed company and the acquired companies are currently
applying for permits and licences to carry out their projects. Therefore,
construction work has not yet started on the renewable energy facilities, and
no revenue has been generated since the acquisition/formation date.
Other investments.
On 30 June 2017, ENDESA sold its holdings in Aquilae Solar, S.L., Cefeidas
Desarrollo Solar, S.L., Cephei Desarrollo Solar, S.L., Desarrollo Photosolar,
S.L., Fotovoltaica Insular, S.L. and Sol de Media Noche Fotovoltaica, S.L. The
transaction generated a gross gain of Euros 4 million on the 2017 Consolidated
Income Statement (see Section 2.2.5. Gains/(losses) on disposal of assets in
this Consolidated Management Report and Note 2.5 to the Consolidated Financial
Statements for the year ended 31 December 2017).
On 18 July 2017, ENEL Green Power España, S.L.U. (EGPE) completed the
purchase of non-controlling interests in Productor Regional de Energía
Renovable, S.A. (15%) and Productor Regional de Energías Renovables III, S.A.
(17.11%) for the amount of Euros 2 million and Euros 3 million, respectively.
The transaction, which had no impact on the Consolidated Income Statement, had
an effect of Euros 3 million on Equity (see Note 2.3 to the Consolidated
Financial Statements for the year ended 31 December 2017).
On 4 August 2017, the dissolution of the Minas de Estercuel, S.A. (in
liquidation) and Minas Gargallo, S.L. (in liquidation) in which ENDESA held
stakes of 99.65% and 99.91%, respectively was registered with the Companies
Register (see Note 2.3 to the Consolidated Financial Statements for the year
ended 31 December 2017).
On 28 December 2017, ENDESA sold its 60% holding in the share capital of Nueva
Marina Real Estate, S.L The transaction generated a gross gain of Euros 9
million on the 2017 Consolidated Income Statement (see Section 2.2.5.
Gains/(losses) on disposal of assets in this Consolidated Management Report
and Note 2.3 to the Consolidated Financial Statements for the year ended 31
December 2017).
ENEL Green Power España, S.L.U. (EGPE).
On 27 July 2016, ENDESA Generación S.A.U., a company fully owned by ENDESA
S.A., acquired from ENEL Green Power International B.V. 60% of the share
capital of ENEL Green Power España, S.L.U. (EGPE), thus increasing its
previous stake in share capital from 40%.
On the date of execution of the purchase, ENDESA assumed control over ENEL
Green Power España, S.L.U. (EGPE) compared to the significant influence that
it had previously held.
At 31 December 2017, one year after the purchase of ENEL Green Power España,
S.L.U. (EGPE), the business combination has been recognised following
completion in 2017 of the measurement of its assets, liabilities and
contingent liabilities at fair value once the final conclusions concerning the
appraisal of certain compensatory assets and contingent liabilities had been
obtained (see Notes 5.4 and 17.3 to the Consolidated Financial Statements for
the year ended 31 December 2017).
Using the acquisition method, the acquired assets and assumed liabilities (net
acquired assets) of ENEL Green Power España, S.L.U. (EGPE) have been
recognised at fair value at the acquisition date under the following headings
of the Consolidated Financial Statements:
Millions of Euros
Provisional fair value Valuation adjustments in the period Definitive fair value
Non-current assets 2,328 (2) 2,326
Property, plant & equipment 1,248 - 1,248
Intangible assets 757 - 757
Investments accounted for using the equity method 34 - 34
Non-current financial assets 252 (2) 250
Deferred tax assets 37 - 37
Current assets 143 - 143
Inventories 29 - 29
Trade and other receivables 70 - 70
Current financial assets 13 - 13
Cash and cash equivalents 31 - 31
TOTAL ASSETS 2,471 (2) 2,469
NON-CONTROLLING INTERESTS 148 - 148
Non-current liabilities 445 (4) 441
Deferred income 9 - 9
Non-current provisions 55 (4) 51
Provisions for pensions and similar obligations 2 - 2
Other non-current provisions 53 (4) 49
Non-current interest-bearing loans and borrowings 141 - 141
Other non-current Liabilities 9 - 9
Deferred tax liabilities 231 - 231
Current liabilities 164 - 164
Current interest-bearing loans and borrowing 86 - 86
Trade and other payables 78 - 78
TOTAL LIABILITIES 609 (4) 605
Fair value of net assets acquired ((1)) 1,714 2 1,716
(1) The main revalued assets belong to the category of Intangible
Assets (see Note 8 to the Consolidated Financial Statements for the
year ended 31 December 2017).
The difference between the cost of the business combination and the fair value
of the assets and liabilities booked as indicated above, in due consideration
of the fair value of the previous 40% stake in ENEL Green Power España,
S.L.U. (EGPE), generated goodwill in the amount of Euros 296 million.
As a result of the takeover, the Consolidated Income Statement for 2017
includes the income and expenses of ENEL Green Power España, S.L.U. (EGPE).
The contribution of ENEL Green Power España, S.L.U. (EGPE) to net profit in
2017 was Euros 51 million (Euros 38 million in 2016), broken down as follows:
Millions of Euros
2017 2016
Revenue 280 118
Contribution margin 256 104
EBITDA ((1)) 181 75
EBIT ((2)) 74 16
Net financial profit/(loss) 2 1
Net Profit/(loss) of companies accounted for using the equity method 5 (65) ((3))
and other investments
Income tax expense (20) 87 ((4))
Non-Controlling Interests (10) (1)
TOTAL 51 38
(1) EBITDA = Income - Procurements and services + Work carried out
by the Group for its assets - Personnel expenses - Other fixed
operating expenses.
(2) EBIT = EBITDA – Depreciation and amortisation and impairment
losses.
(3) Includes mainly net profit/loss relating to the 40% stake previously-held
by ENDESA, S.A. through ENDESA Generación, S.A.U. until the date that control
was obtained (Euros 7 million), impairment recognised prior to the date that
control was obtained, bearing in mind that the recoverable value of the 40%
stake in ENEL Green Power España, S.L.U. (EGPE) was lower than its carrying
amount (Euros 72 million), and net profit at the takeover date, as a result of
the fair value measurement of the non-controlling 40% stake in ENEL Green
Power España, S.L.U. (EGPE) (Euros -4 million).
(4) Following the takeover of ENEL Green Power España, S.L.U.
(EGPE), there was a reversal of deferred tax liabilities in the
amount of Euros 81 million booked by ENDESA as a result of gains not
distributed by ENEL Green Power España, S.L.U. (EGPE) that were
generated after control of the company was lost in 2010, and which
met the requirements for recognition.
In 2017 and 2016 the main figures for ENEL Green Power España, S.L.U. (EGPE)
are as follows:
Main figures of ENEL Green Power España, S.L.U. (EGPE)
2017 2016
Electricity generation (GWh) 3,441 1,212 ((1))
Gross installed capacity (MW) ((2)) 1,675 1,675
Net Installed capacity (MW) ((2)) 1,675 1,675
Electricity sales (GWh) 3,441 1,212 ((1))
(1) From the takeover date of 27 July 2016.
(2) At 31 December.
2.5. Acquisition of the systems and telecommunications activity (ICT).
On 29 December 2016, ENDESA, S.A., acting through its fully owned subsidiary
ENDESA Medios y Sistemas, S.L.U., and ENEL Iberia, S.L.U. entered into an
Assignment Contract for the IT and Telecommunications Activity so that the
latter may acquire the ICT activities within the ENDESA sphere (see Note 5.1
to the Consolidated Financial Statements for the year ended 31 December 2017).
The operation entailed the transfer of materials, human resources and
contracts with third parties affected in the implementation of these
activities.
The effective date of the transaction was 1 January 2017 and entailed a
reorganisation of systems and telecommunications support activities at ENDESA
to make them more flexible in order to adapt to ENDESA’s corporate scope,
simplifying internal procedures and administrative management.
The price stipulated for purchasing this activity was Euros 246 million, which
was paid on the date when the contract was formalised. The transaction was
recognised through the acquisition method, with definitive allocation to the
following items in the Consolidated Financial Statements:
Millions of Euros
Fair value
Non-current assets 95
Property, plant & equipment 64
Intangible assets 30
Non-current financial assets 1
TOTAL ASSETS 95
Non-Current liabilities 8
Non-current provisions 8
Current liabilities 2
Trade and other payables 2
TOTAL LIABILITIES 10
Fair value of net assets acquired 85
The difference between the cost of the business combination and the fair value
of the recognised assets and liabilities indicated above gave rise a goodwill
of Euros 161 million from the expected synergies to be obtained in the
operation based on aspects such as the prospects of greater autonomy for
ENDESA in the future management of ICT activities, simplification and
improvement of operations and management and a reduction in expected costs.
The fair value of the acquired assets and assumed liabilities was determined
by discounting the free cash flows on the basis of the business plan and the
trend of the systems and telecommunications (ICT) sector.
In 2017, the systems and telecommunications activity (ICT) contributed Euros
30 million to EBITDA and Euros 12 million to EBIT.
2.6. Statistical Appendix
Key figures.
GWh
Electricity generation ((1)) 2017 2016 % Var.
Mainland 62,164 55,985 11.0
Nuclear 26,448 25,921 2.0
Coal 22,303 19,033 17.2
Hydroelectric 5,004 7,173 (30.2)
Combined cycle (CCGT) 8,409 3,858 118.0
Non-mainland Territories generation (TNP) 13,043 12,634 3.2
Renewables and cogeneration 3,441 1,212 ((2)) 183.9
TOTAL 78,648 69,831 12.6
(1) At busbar cost.
(2) Corresponding to energy generated by ENEL Green Power España, S.L.U.
(EGPE) since the date of the takeover, 27 July 2016 (see Section 2.4.
Consolidation Scope in this Consolidated Management Report).
MW
Gross installed capacity 31 December 2017 31 December 2016 % Var.
Hydroelectric 4,752 4,765 (0.3)
Conventional thermal 8,130 8,130 -
Nuclear 3,443 3,443 -
Combined cycle (CCGT) 5,678 5,678 -
Renewables and cogeneration 1,675 1,675 -
TOTAL 23,678 23,691 (0.1)
MW
Net installed capacity 31 December 2017 31 December 2016 % Var.
Hydroelectric 4,709 4,721 (0.3)
Conventional thermal 7,585 7,585 -
Nuclear 3,318 3,318 -
Combined cycle (CCGT) 5,445 5,445 -
Renewables and cogeneration 1,675 1,675 -
TOTAL 22,732 22,744 (0.1)
GWh
Other gross electricity sales ((1)) 2017 2016 % Var.
Reference supply 15,263 16,297 (6.3)
Deregulated market 91,487 87,343 4.7
TOTAL 106,750 103,640 3.0
(1) At busbar cost.
GWh
Other net electricity sales ((1)) 2017 2016 % Var.
Reference supply 12,919 13,815 (6.5)
Deregulated market 83,594 79,675 4.9
TOTAL 96,513 93,490 3.2
(1) Sales to end customers.
Thousands
Number of customers (electricity) ((1)) 31 December 2017 31 December 2016 % Var.
Regulated market 5,255 5,593 (6.0)
Mainland Spain 4,416 4,692 (5.9)
Non-mainland Territories generation (TNP) 839 901 (6.9)
Deregulated market 5,593 5,423 3.1
Mainland Spain 4,601 4,505 2.1
Non-mainland Territories generation (TNP) 787 744 5.8
Outside Spain 205 174 17.8
TOTAL 10,848 11,016 (1.5)
(1) Supply points.
Percentage (%)
Electricity demand trend ((1)) 2017 2016
Mainland ((2)) 1.1 0.6
Non-mainland Territories generation (TNP) ((3)) 2.6 1.0
(1) Source: Red Eléctrica de España, S.A. (REE).
(2) Adjusted for working days and temperature: +1.6% in 2017 and
-0.1% in 2016.
(3) Adjusted for working days and temperature: +3.4% in 2017 and
+0.8% in 2016.
GWh
Energy distributed ((1)) 2017 2016 % Var.
Spain and Portugal 117,961 115,602 2.0
(1) At busbar cost.
km
Distribution and transmission networks 31 December 2017 31 December 2016 % Var.
Spain and Portugal 317,782 316,562 0.4
Percentage (%)
Energy losses ((1)) 2017 2016
Spain and Portugal 10.6 11.0
(1) Source: In-house.
Minutes
Installed Capacity Equivalent Interruption Time (ICEIT) 2017 2016
Spain and Portugal (average) ((1) (2)) 62 45
(1) Corresponds to Spain.
(2) According to the calculation procedure set down by Royal Decree
1995/2000, of 1 December.
Percentage (%)
Market share (Electricity) ((1)) 31 December 2017 31 December 2016
Ordinary mainland generation 38.3 35.1
Renewable generation ((2)) 3.6 3.5
Distribution 44.1 43.7
Deregulated market 35.4 35.3
(1) Source: Endesa data.
(2) Excluding hydroelectric.
GWh
Gas sales 2017 2016 % Var.
Deregulated market 46,578 48,270 (3.5)
Regulated market 1,372 1,464 (6.3)
International market 24,523 19,474 25.9
Wholesale business 7,361 8,921 (17.5)
TOTAL ((1)) 79,834 78,129 2.2
(1) Excluding own generation consumption.
Thousands
Customers (Gas) ((1)) 2017 2016 % Var.
Regulated market 246 262 (6.1)
Mainland Spain 219 233 (6.0)
Non-mainland Territories generation (TNP) 27 29 (6.9)
Deregulated market 1,314 1,276 3.0
Mainland Spain 1,205 1,167 3.3
Non-mainland Territories generation (TNP) 63 86 (26.7)
Outside Spain 46 23 100.0
TOTAL 1,560 1,538 1.4
(1) Supply points.
Percentage (%)
Gas demand trend ((1)) 2017 2016
Domestic market 9.1 3.3
Domestic conventional 5.1 2.1
Electricity sector 26.7 (2.6)
(1) Source: Enagás, S.A.
Percentage (%)
Market share (Gas) ((1)) 2017 2016
Deregulated market 16.1 16.9
(1) Source: Endesa data.
Financial Data.
Millions of Euros
Consolidated Income Statement ((5))
2017 2016 % Var.
Sales 19,556 18,313 6.8
Contribution margin ((1)) 5,488 5,652 (2.9)
EBITDA ((2)) 3,542 3,432 3.2
EBIT ((3)) 2,031 1,965 3.4
Net Income ((4)) 1,463 1,411 3.7
(1) Contribution margin = Income - Procurements and services.
(2) EBITDA = Income - Procurements and Services + Work carried out
by the Group for its assets - Personnel expenses - Other fixed
operating expenses.
(3) Operating profit (EBIT) = Gross operating profit (EBITDA) -
Depreciation and amortisation and impairment losses.
(4) Net profit: Profit/(loss) of the Parent.
(5) See the Consolidated Income Statements for 2017 and 2016.
Euros
Vauation Key figures 2017 2016 % Var.
Earnings per share ((1)) 1.38 1.33 3.7
Cash Flow per share ((2)) 2.30 2.83 (18.6)
Book value of equity per share ((3)) 8.59 ((4)) 8.46 ((5)) 1.6
(1) Net profit per share = profit for the year by parent / Nº shares.
(2) Cash flow per share = Net cash flows from operating activities /
Nº of shares.
(3) Carrying amount per share = Equity of parent / Nº of shares.
(4) At 31 December 2017
(5) At 31 December 2016
Millions of Euros
Consolidated statement of financial position ((2))
31 December 2017 31 December 2016 % Var.
Total assets 31,037 30,960 0.2
Equity 9,233 9,088 1.6
Net financial debt ((1)) 4,985 4,938 1.0
(1) Net financial debt = Non-current financial liabilities + Current
financial liabilities – Cash and cash equivalents – Financial
derivatives recognised under assets.
(2) See Statements of Financial Position at 31 December 2017 and
2016.
Profitability indicators (%) 31 December 2017 31 December 2016
Return on equity ((1)) 16.21 15.69
Return on assets ((2)) 4.72 4.69
Economic profitability ((3)) 9.31 9.20
Return on capital employed (ROCE) ((4)) 5.08 5.39
(1) Return on equity = Profit for the year by parent / Average
equity of the Parent
(2) Return on assets = Profit for the year by parent / Average total
assets.
(3) Economic profitability = Operating profit (EBIT) / Average
property, plant and equipment.
(4) Return on capital employed = Operating profit after tax /
(Average non-current assets + average current assets).
Financial indicators 31 December 2017 31 December 2016
Liquidity ratio ((1)) 0.73 0.72
Solvency ratio ((2)) 0.92 0.92
Debt ratio ((3)) 35.06 35.21
Debt hedge ratio ((4)) 1.41 1.44
(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 coverage = Net financial debt / Gross operating profit
(EBITDA).
Workforce.
Number of employees
Period-end headcount % Var.
31 December 2017 ((1)) 31
Dec
emb
er
201
6
Men Women Total Men Women Total
Generation and supply 4,083 1,024 5,107 4,140 989 5,129 (0.4)
Distribution 2,491 429 2,920 2,707 467 3,174 (8.0)
Structure and other ((2)) 884 795 1,679 679 712 1,391 20.7
TOTAL EMPLOYEES 7,458 2,248 9,706 7,526 2,168 9,694 0.1
(1) Includes the final workforce from the ICT business of ENDESA
Medios y Sistemas, S.L.U. (319 employees) (see section 2.5.
Acquisition of the systems and telecommunications activity (ICT) of
this Consolidated Management Report).
(2) Structure and services.
Number of employees
Average headcount
2017 ((1)) 201 %
6 V
((2 a
)) r
.
Men Women Total Men Women Total
Generation and supply 4,102 998 5,100 4,127 983 5,110 (0.2)
Distribution 2,582 441 3,023 2,841 474 3,315 (8.8)
Structure and other ((3)) 917 816 1,733 691 703 1,394 24.3
TOTAL 7,601 2,255 9,856 7,659 2,160 9,819 0.4
(1) Includes the average workforce from the ICT business of ENDESA
Medios y Sistemas, S.L.U. (329 employees), ENEL Green Power, S.L.U.
(EGPE) (174 employees) and Eléctrica del Ebro, S.A. (20 employees)
(see section 2.4. Consolidation scope and 2.5. Acquisition of the
systems and telecommunications activity (ICT) of this Consolidated
Management Report).
(2) Includes the average workforce of ENEL Green Power España, S.L.U. (EGPE)
(86 employees) and Eléctrica del Ebro, S.A. (8 employees) since their
respective takeover dates (see section 2.4. Consolidation scope of this
Consolidated Management Report).
(3) Structure and services.
Dividend.
2017 2016 % Var.
Share capital (Millions of Euros) 1,270.50 1,270.50 -
Number of shares 1,058,752,117 1,058,752,117 -
Consolidated net profit (Millions of Euros) 1,463 1,411 3.7
Individual net profit (Millions of Euros) 1,491 1,419 5.1
Earnings per share (Euros (1)) 1,382 1,333 3.7
Gross dividend per share (Euros) 1,382 ((2)) 1,333 ((3)) 3.7
Consolidated pay-out ((%) (4)) 100.0 100.0 -
Individual pay-out ((%) (5)) 98.1 99.4 -
(1) Earnings per Share (Euros) = Parent company period result /
Shares.
(2) Gross interim dividend of Euro 0.7 per share paid on 2 January
2018, plus an additional gross dividend of Euro 0,682 per share
pending approval by the ENDESA, S.A. General Shareholders' Meeting.
(3) Gross interim dividend of Euro 0.7 per share paid on 2 January
2017, plus an additional gross dividend of Euro 0,633 paid 3 July
2017.
(4) Consolidated pay-out (%) = (Gross dividend per share * Shares) /
Parent company period result.
(5) Individual pay-out (%) = (Gross dividend per share * Shares) /
Period result of ENDESA, S.A.
Stock Market Information.
The performance of ENDESA's share price on the Madrid stock market and major
indexes in 2017 and 2016 is as follows:
Percentage (%)
Share price performance ((1)) 2017 2016
ENDESA, S.A. (11.3) 8.6
IBEX-35 7.4 (2.0)
Euro Stoxx 50 6.5 0.7
Euro Stoxx Utilities 15.7 (7.8)
(1) Considering dividends distributed in 2017, in the gross amount
of Euros 1,333 per share, the return for shareholders in 2017 was
-4.7%. Considering the dividends distributed in 2016, in the gross
amount of Euro 1,026 per share, the return for shareholders in 2016
was 14.2%.
Stock Market Data 31 December 2017 31 December 2016 % Var.
Market cap (Millions of Euros (1)) 18,904 21,307 (11.3)
Number of outstanding shares 1,058,752,117 1,058,752,117 -
Nominal share value (Euros) 1.2 1.2 -
Cash (Millions of Euros (2)) 10,866 10,784 0.8
Continuous market (Shares)
Trading volume ((3)) 536,793,866 596,186,291 (10.0)
Average daily trading volume ((4)) 2,105,074 2,319,791 (9.3)
Price to Earnings Ratio (P.E.R.) ((5)) 12.92 15.10 -
Price / Carrying amount ((6)) 2.08 2.38 -
(1) Market Cap = Number of Shares at the Close of the Period *
Listing Price at the Close of the Period.
(2) Cash = Sum of all the operations made over the value in the
reference period (Source: Madrid Stock Exchange).
(3) Trading volume = Total volume of stock in ENDESA, S.A. traded in
the period (Fuente: Madrid Stock Exchange).
(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 (PER) = Share price at the close of the
period / Earnings per share.
(6) Price / Carrying amount = Market capitalisation / Equity of the
Parent.
Euros
ENDESA share price((1)) 2017 2016 % Var.
High 22,760 20,975 8.5
Low 17,855 15,735 13.5
Average in the period 20,234 18,151 11.5
Closing price 17,855 20,125 (11.3)
(1) Source: Madrid Stock Exchange.
3. Regulatory Framework.
Information on Spain's regulatory framework is set out in Note 4 to the
Consolidated Financial Statements for the year ended 31 December 2017.
There follows the main changes in the Spanish regulatory framework that either
were approved in 2017 or had a major effect on the Consolidated Financial
Statements for that year.
Remuneration of the distribution activity.
On 28 November 2015, the Official State Gazette published Royal Decree
1073/2015, of 27 November 2015, which modifies certain provisions in the Royal
Decrees on the remuneration of electricity networks (Royal Decree 1047/2013,
of 27 December 2013, for transmission, and Royal Decree 1048/2013, of 27
December 2013, for distribution). Among other aspects, Royal Decree 1073/2015,
of 27 November, eliminates the yearly update of unitary values based on the
CPI, in accordance with Law 2/2015, of 30 March 2015, on de-indexing the
economy.
On 12 December 2015, Ministerial Order IET/2660/2015, of 11 December 2015, was
published, establishing the types of installations and unitary value to be
used in calculating distribution remuneration. This Order set the beginning of
the first
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