REG-International Endesa Final Results <Origin Href="QuoteRef">ELE.MC</Origin> - Part 5

Endesa SAAnnouncement

24/02/2017 09:05

- Part 5: For the preceding part double click  ID:nBw4GNttXd 

Information

The performance of ENDESA's share price on the Madrid stock market and major
indexes in 2016 and 2015 was as follows:
 Percentage (%)                                                                                   
                                    Share price trend with respect to the previous year           
                          2016      2015                                    
 ENDESA, S.A.((1))                  8.6                                     11.9                  
 Ibex-35                            (2.0)                                   (7.2)                 
 Eurostoxx 50                       0.7                                     4.5                   
 Eurostoxx Utilities                (7.8)                                   (5.1)                 

 (1) Considering dividends distributed in 2016, in the gross amount         
      of Euros 1.026 per share, the return for shareholders in 2016 was     
      14.2%. Considering the dividends distributed in 2015, in the gross    
      amount of Euro 0.76 per share, the return for shareholders in 2015    
      was 16.5%.                                                            

 Stock market information                                 31 December    31 December    % chg   
                                                          
              
                      
                                                          2016           2015                   
 Market capitalisation         ((Millions of Euros) (1))  21,307         19,613         8.6     
 Number of shares outstanding                             1,058,752,117  1,058,752,117  -       
 Nominal share value           ((Euros))                  1.2            1.2            -       
 Cash                          ((Thousand Euros) (2))     10,783,803     16,500,861     (34.6)  
 Madrid stock exchange         ((Shares))                                                       
 Trading volume                ((3))                      596,186,291    919,800,874    (35.2)  
 Average daily trading volume  ((4))                      2,319,791      3,592,972      (35.4)  
 P.E.R.                        ((5))                      15.1           18.1                   
 (1) Market capitalisation = Number of shares at 31 December *                                  
      Year-end price listing.                                                                   
 
                                                                                              
 (2) Cash = Sum of all share transactions concluded during the reference                        
 period.                                                                                        
 (3) Trading volume = total volume of ENDESA, S.A. shares traded                                
      during the period (Source: Madrid Stock Exchange).                                        
 
                                                                                              
 (4) Average daily trading volume = arithmetic average of ENDESA, S.A. shares                   
 traded per session during the period (Source: Madrid Stock Exchange).                          
 
                                                                                              
 (5) Price to Earnings Ratio (P.E.R.) = Closing price / Earnings per share                      

 Euros                                                                   
                                  ENDESA, S.A. share price               
                            2016          2015           % chg         
 Maximum                          20,975         20,585         1.9      
 Minimum                          15,735         15,565         1.1      
 Average in the period            18,151         18,234         (0.5)    
 Closing price                    20,125         18,525         8.6      


The year 2016 on the stock market was a year of surges and dips, with major
political encounters generating much concern on markets. One such event was
the decision of the United Kingdom in June to leave the European Union, and
the Italian referendum in December with a proposed reform of the constitution,
which was finally rejected. General elections were held in a number of
countries, including the United States in November, leading to a change in the
presidency that had not been anticipated in pre-election polls, and in Spain
in July, although no actual government was formed until November.

Markets also kept a close watch on doubts as to a possible economic recession
in China after the country took the decision to devalue its currency, and on
interest rate decisions by the world's major Central Banks. The US Federal
Reserve began to push up rates in December 2016, while the European Central
Bank (ECB) decided to maintain and extend its debt purchase programme. This
discrepancy in the monetary policies of the US and the European Union was
reflected in the quasi-parity of the US dollar (USD) against the euro.

Despite this scenario of uncertainty and political risk, most of the world's
stock exchanges finished the year in positive territory. The only exceptions
were Italy, where the MIB lost 10.2%, and Spain, where the Ibex-35 fell by
2.01%, as the result in both cases of the pressure brought to bear by
disruptions in the banking sector. The pan-European Eurostoxx 50 index closed
with a slight gain of 0.7%, behind the French exchange (CAC-40: +4.86%) and
its German counterpart (Dax: +6.87%), which were much more upbeat. However,
the keynote among stock exchanges was the positive performance by the UK,
where the FTSE 100 showed a considerable gain in the latter part of the year
following the decision in the referendum to leave the European Union. The fall
in sterling pound (GBP) turned in favour of British exporters, and the index
closed the year with a satisfactory +14.43%, following some all-time highs.

Spain's Ibex-35 (-2.01%) finished its second year running with losses, but
recovered well from the doldrums of 27 June 2016 after news of the result of
the UK referendum, when it lost almost 20%. Its highest surge came during the
last month of the year, 7.6%, its best December in the last 20 years, although
this proved insufficient to finish the year in positive territory.

The general trend in Europe's electricity sector on the Dow Jones Eurostoxx
Utilities index was also negative. The index finished the year down by 7.75%
due to assets rotation in the last six months, in expectation of higher
interest rates. The worst performers on the index were French and German
companies, amid doubts concerning the ability of their balance sheets to cope
with regulatory changes and adverse market situations. In the specific case of
the 2 major German companies, E.On AG and RWE AG, both of them carried out
restructuring processes, entailing division and the creation of 2 new
companies which brought out stock market listings during the last quarter of
the year, “Uniper SE” and “Innogy SE”, respectively.

In terms of Spanish electricity companies, which finished the year with an
overall loss of around 5%, ENDESA was perceived as one of the year's main
defensive shares, and led the sector with a gain of 8.64%. From the point of
view of investors, the main attraction of ENDESA lies in its proportional
return for shareholders in its dividend policy (see Section 13.2. Dividend
Policy in this Consolidated Management Report). Another much prized aspect of
the 2017-2019 Strategic Plan presented on 23 November was the new investment
cycle on which the company embarked (see Section 6. Outlook in this
Consolidated Management Report).

In this regard, the positive market performance of 8.64% notched up by ENDESA
in 2016 must be considered alongside a dividend yield of 5.54%, with a gross
dividend of Euros 1.026 per share in respect of 2015 earnings, bringing the
total return on the share, calculated as the sum of the stock market return
and the dividend yield, to 14.18% in 2016.

ENDESA's listing finished the year at Euros 20.125 per share, very close to
the maximum for the year of Euros 20.975 on 27 December 2016. The minimum,
Euros 15.735 per share, was recorded on 11 February 2016, driven down along
with the rest of the Ibex-35 by fears of a Chinese recession.

13.2. Dividend policy.

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 is also a guarantee of sustainability
for the business project undertaken.

As a result of this economic-financial strategy, unless any exceptional
circumstances arise, which will be duly announced, at a meeting on 22 November
2016 the Board of Directors of ENDESA, S.A. approved the following shareholder
remuneration policy for 2016-2019:

      
 *2016: the ordinary dividend per share distributed against the year will be the
equivalent of 100% of net income attributable to the Parent set out in the
Consolidated Financial Statements, provided that this amount is higher than
the result of applying a minimum 5% increase to the ordinary dividend paid
with a charge to the previous year.
      
 *2017-2019: the ordinary dividend per share to be distributed in respect of
these years will be the equivalent of 100% of ordinary net income attributable
to the Parent set out in the Consolidated Financial Statements of the Group
headed by the company. Specifically for the financial year 2017, the ordinary
gross dividend will be at least Euros 1.32 per share.
    
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 notified.

However, 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.

In respect of 2016, at a meeting on 22 November 2016 ENDESA's Board of
Directors agreed to pay its shareholders a gross interim dividend against 2016
income of Euro 0.70 per share, which gave rise to a pay-out of Euros 741
million on 2 January 2017.

The proposed distribution of profit in 2016 to be presented at the General
Shareholders' Meeting by ENDESA's Board of Directors will be a total gross
dividend of Euros 1.333 per share (see Section 16. Proposed Distribution of
Profit in this Consolidated Management Report). Taking into account the
interim dividend referred to in the preceding paragraph, the complementary
dividend in respect of 2016 will be a gross amount of Euro 0.633 per share.

Details of ENDESA, S.A.'s per-share dividends in 2016 and 2015 are as follows:
                                     2016               2015               % chg    
 Share capital ((1))                 1,270.50           1,270.50           -        
 Number of shares                    1,058,752,117      1,058,752,117      -        
 Consolidated net profit ((1))       1,411              1,086              29.9     
 Individual net profit ((1))         1,419              1,135              25.0     
 Earnings per share ((2)(3)(4))      1,333              1,026              29.9     
 Gross dividend per share ((2))      1,333 ((5))        1,026 ((6))        29.9     
 Consolidated pay-out ((%)(7))       100.0              100.0              -        
 Individual pay-out ((%)(8))         99.4               95.7               -        


(1) Millions of Euros.

(2) Data in Euros.

(3) Corresponding to the Consolidated Financial Statements.

(4) Earnings per share = profit for the year by parent / Nº shares.

(5) Gross interim dividend of Euro 0.7 per share paid on 2 January 2017, plus
an additional gross dividend of Euro 0.633 per share pending approval by the
ENDESA, S.A. General Shareholders' Meeting. (see Section 16 Proposed
Distribution of Profit in this Consolidated Management Report).

(6) Gross interim dividend of Euro 0.4 per share paid on 4 January 2016, plus
an additional gross dividend of Euro 0.686 per share paid on 1 July 2016.

(7) Consolidated pay-out = (gross dividend per share * Nº shares) / profit
for the year by Parent.

(8) Individual pay-out = (gross dividend per share * Nº shares) / profit for
the year by ENDESA, S.A.

14. Information on the Average Payment Period to Suppliers

Information regarding the average payment period to suppliers in 2016 is
provided in Note 22.1 of the Notes to the Consolidated Financial Statements
for the year ended on 31 December 2016.

15. Proposed distribution of net income.

The profit for 2016 of ENDESA, S.A., the Parent, amounted to Euros
1,418,945,712.93 euros.

The Company’s Board of Directors will propose to the shareholders at the
General Shareholders' Meeting that this amount be used to make a dividend
payment of Euros 1.333 gross per share with the rest taken to retained
earnings.
                              Proposed Distribution of Profit  
                              Euros                            
 To dividends          ((1))  1,411,316,571.96                 
 To retained earnings         7,629,140.97                     
 TOTAL                        1,418,945,712.93                 
 (1) Maximum amount to be distributed based on Euros 1.333 gross per  
      share for all shares.                                    


You will find additional information on our 2016 Results on our website

www.endesa.com
(http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.endesa.com&esheet=51515725&newsitemid=20170224005218&lan=en-US&anchor=www.endesa.com&index=1&md5=3a92fa2d886f09977fa8dd70eb4cacc8)

(1) Gross operating profit (EBITDA) = Income - Supplies and Services + Work
carried out by the Group for its assets – Personnel Expenses – Other fixed
operating expenses.



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