Equity Story OPA def ING

Resultados 1S 2005
Fuerte crecimiento en todos los negocios
Endesa: stronger business, greater value
1
3rd October 2005
Gas Natural’s offer is unacceptable
§ Clearly insufficient price
§ Payment with over-valued stock
§ Value destructive
Endesa offers greater value
§ Maximum priority on shareholder returns
§ Strong organic growth
§ Management commitment reinforced
2
Endesa is worth much more than
Gas Natural’s offer
Endesa’s implied share price based on
latest comparable transactions (€/share)
37,7
28,4
Offer by Gas Natural
(€/share)
35,1
28,5
21,1
Enel/Viesgo
Sep 01
FerroatlanticaENBW/
Hidrocantábrico
Mar 01
Suez/
Electrabel
Aug 05
ACS/Union
Fenosa
Sep 05
100%
CASH
100%
CASH
80%
CASH
100%
CASH
11.0x
11.0x
13.0x
12.4x
EV/EBITDA multiple
30-sep
35%
CASH
9.4x
3
Gas Natural offer: “just paper”
(€ billion)
Little cash …
…which is paid by
Endesa itself!
22,5
65.5%
14,7
Acquisition
financing
Shares
7,8
9
34.5%
7
Cash
Disposal of
valuable
and
strategic
assets of
Endesa
4
Gas Natural shares: overvalued and illiquid
Analysts value Gas Natural below its
current market capitalisation
Gas Natural’s stock has very
little liquidity
Average target price
22.17 €/share
BNP
24,70
Fortis Bank
24,70
ABN
Average daily volume 2005
(€ million)
23,80
Chevreux
23,34
UBS
23,00
Citigroup
21,50
Goldman Sachs
21,50
Ixis Securities
193,1
21,00
CSFB
20,80
Deutsche Bank
20,80
JP Morgan
20,50
Morgan Stanley
20,50
21,8
+11%
Gas Natural
Endesa
0,00
Gas Natural
16
24,53
18
20
22
24
26
Note: Based on target prices of international analysts prior to Gas Natural’s takeover offer
28%
89%
Free Float
5
The offer premium is absolutely inadequate
Day one
Prior 4 weeks
49%
45%
27%
27%
16%
15%
Successful
hostile
tender
offers
Failed
hostile
tender
offers
GN offer for
Endesa
Successful
hostile
tender
offers
Failed
hostile
tender
offers
GN offer for
Endesa
Note: Based on hostile tender offers of more than €10 billion since January 1995 for European targets
6
La Caixa would gain control of Endesa without
paying a control premium
Shareholding structure
§ The combined entity would
have a lower free-float both in
euros and percentage terms
§ Corporate governance issues
64%
FreeFloat/Others
§ Shareholders denied a control
premium today…
6%
Caja Madrid
30%
Caixa /
Repsol
§ …while in the future the major
shareholder could sell its
stake at a premium
89%
9%
Endesa
2%
§ Risk of flowback
Endesa
+GN
7
Gas Natural: a troubled future
“For Gas Natural, completing the transaction is almost a vital necessity because
the future for the company is nothing other than a constant reduction in its market
share”.
Isidre Fainé, CEO La Caixa, ElConfidencial.com, 14 Sep 2005
Spain has among the highest gas
tariffs within the European Union
Gas Natural’s market share has declined
by more than 20% in the last 3 years
Residential gas tariffs in Spain vs. EU 2005
(€c/kWh)
10.3
10.2
9.6
9.0
Gas Natural’s market
share evolution (% of total volume)
83%
8.8
7.6
Spain
Germany Holland France Ireland
Source: Eurostat, Gas Natural
UK
61%
2001
2004
8
Endesa is already a global leader
Creating a leading, fully integrated
global energy company
September 2005
…and loss of leadership in electricity
Gas Natural brings no fundamental
increase in size …
Global installed capacity 2004 (GW)
EV (€ billion)
EDF
83
E.On
RWE
E.On
78
63
Enel
Endesa + GN
54
Suez
49
Endesa
48
33
Iberdrola
GDF
31
Scottish Power
20
EDP
19
125
EDF
>85
+12%
54
Endesa
46
Enel
46
Suez
45
RWE
44
Endesa+GN
37
Iberdrola
25
15
Scottish Power
EDP
12
10
Union Fenosa
Union Fenosa
17
Centrica
16
Centrica
Gas Natural
14
Gas Natural
(21%)
3
1
9
Endesa’s international business would shrink
Creating a leading, fully integrated
global energy company
September 2005
Gas Natural substitutes Italy and France with Puerto Rico and Mexico
Geographic presence
EBITDA 2004
X
Latam
Europe
+2 p.p
-8 p.p
Spain and +6 p.p
Portugal
Endesa
Endesa + GN
Endesa
New presence provided by
Gas Natural
10
Gas Natural brings no value to Endesa’s gas
procurement business
Creating a leading, fully integrated
global energy company
September 2005
Upstream and
midstream gas
§ Gas Natural with no gas reserves and in a captive JV with Repsol
provides no advantages
Gas sourcing
§ Endesa already enjoys significant purchasing power due to scale
§ Competitive, diversified and flexible portfolio of contracts
§ Optimised gas sourcing by origin, destination and use
Diversified sourcing portfolio
Competitive sourcing
Geographical split of sourcing contracts signed (98-05)
Gas sourcing price*
100%
100%
Qatar
Trinidad
Repsol
Nigeria
Algeria
Nigeria
Algeria
Eni
Qatar
Gas Natural
Gas Natural
Endesa
103*
*
100
Gas
Natural
Endesa
* Average price of sourcing contracts signed between 1998-2005 with destination Spain (Base 100)
** Estimated price for Gas natural
11
Gas Natural adds no value to Endesa’s distribution
and commercialisation activities
Creating a leading, fully integrated
global energy company
September 2005
Gas distribution
Electricity
distribution
§ No synergies in joint
network operations
- Different skills (wires vs.
pipes)
- No overlap in equipment
suppliers
- Already sufficient scale in
service providers
Gas
commercialisation
Electricity
commercialisation
§ Minimal synergy contribution
from additional customers as
Endesa is already significantly
above critical mass:
22 million customers, 11 million
in Spain
§ Endesa already offers its
customers dual-fuel
12
New entity would lose Spanish market leadership
to main competitor
Electricity generation in Spain 2004
(Market share)
Others
34%
36%
Iberdrola
26%
35%
Endesa
38%
31%
#1
Pre-transaction
#2
Post-transaction
Electricity distribution in Spain 2004
(Market share)
Others
20%
20%
Iberdrola
38%
40%
Endesa
42%
#1
Pre-transaction
40%
#2
Post-transaction
13
Generation / supply balance severely damaged
Net position 2004
Pre-transaction:
Endesa balanced,
Iberdrola short
1%
Post-transaction:
Endesa + GN short,
Iberdrola balanced
0%
-22%
-27%
Iberdrola
Endesa
Iberdrola
Endesa + GN
Moreover, the combined group would suffer from Gas
Natural’s declining market share
14
Destruction of Endesa’s European platform
Pre-transaction: only Iberian utility
with relevant position in Europe
Installed capacity in Europe 2004
(MW)
Installed capacity in Europe 2004
(MW)
9.334
Endesa
Iberdrola
Gas Natural
Iberdrola
0
3.670
5.574
EBITDA Europe (1) 2004 (€ million)
640
Endesa
Gas Natural
Endesa +
GN
0
EBITDA Europe (1) 2004 (€ million)
Iberdrola
Post-transaction:
Break-up
Endesa +
GN
308
0
24
(1) Includes 100% consolidated EBITDA FY 2004 of SNET
Iberdrola
356
15
The transaction adds no value in Latam
Latam EBITDA 2004 by country (€ million)
Chile
462
Colombia
425
Brazil
347
Argentina
204
Peru
66
Puerto Rico
53
Endesa
75
36
0
202
Mexico
61
Gas Natural
Note: Spanish GAAP figures for comparison purposes
§ Limited geographic
overlap
§ No synergies
§ Very limited additional
geographic presence
16
Exaggerated synergies
(€ million)
Cost area
Commercial
Announced
synergies
by Gas Natural
175
Information
Technology
90
Corporate
85
Distribution
75
Latam
Total
30
350
105
Estimated
achievable
synergies
Rationale
35-55
§ Endesa’s cost base: €188 million
§ Call centres already surpass economies of scale
§ Joint billing of regulated costumers not allowed in
Spain
10-30
§ Endesa’s software costs are already variable
(outsourcing)
§ Maximum synergy potential: 10% of combined
cash cost (based on benchmarks)
30-40
§ Endesa’s cost base: €81 million
§ Maximum synergy potential: 25% of combined
costs (based on benchmarks)
§ 2 headquarters
0-5
§ No overlap of suppliers
§ Already sufficient scale
§ Different skills (wires vs. pipes)
5-10
§ Different geographical presence
§ Minority shareholders
80 - 140
Endesa + GN will only be 12% larger but
yet smaller both in the electricity and gas
businesses
17
Gas Natural’s plan destroys value
(€ million)
Estimated
achievable
synergies
80-140
Negative
integration
synergies
Negative
synergies
from asset
disposals
Negative
synergies
from
regulatory
risk
Negative
total
estimated
synergies
>200
§ Non-optimal organization (120)
§ Integration of collective labour
agreements (60)
§ Overhead costs of disposed
assets (25)
§ Hostile transaction
§ Pre-agreed asset disposals
at very low multiples
§ Sale of Endesa Europe
§ In contradiction with:
– Spanish and European
precedents
– Conclusions of White Book
– EU market liberalisation
directive
§ Transaction structure may be
modified substantially
In addition, integration costs are estimated at more than
€600 million versus €100 million assumed by Gas Natural
Note: all figures in € million
18
Gas Natural has no experience in managing,
acquiring and integrating large companies
Acquisition track record (€ million - enterprise value)
Endesa bid
2002
2003
Nettis Gas
Plus + Sinia
XXI
Smedigas
2004
272
3Q2005
NA
2Q2005
140
Dersa
1Q2005
3Q2004
2Q2004
70
4Q2004
100
1Q2004
NA
3Q2003
2Q2003
1Q2003
4Q2002
130
3Q2002
2Q2002
156
1Q2002
Grupo
CEG Brancato
Ecoeléctrica
4Q2003
Iberdrola assets in
Brazil and Colombia
47,450
2005
19
Gas Natural destroys value for Endesa shareholders
Spain and
Portugal
§ Leadership given to main competitor with
generation-supply balance severely
HANDS OVER
LEADERSHIP
damaged
Europe
Latam
§ Loss of strategic growth platform in
Italy and France
§ No additional contribution nor synergy
DISINTEGRATION
NO VALUE ADDED
potential
§ Higher integration costs than synergies
Combined
entity
§ Strategic assets sold cheaply to main
competitor
VALUE
DESTRUCTION
§ Regulatory and execution risk
§ Inexperienced management team
20
Gas Natural’s offer is unacceptable
§ Clearly insufficient price
§ Payment with over-valued stock
§ Value destructive
Endesa offers greater value
§ Maximum priority on shareholder returns
§ Strong organic growth
§ Management commitment reinforced
21
Endesa is committed to dividends in excess of
€7 billion over the next 5 years
Dividends from ordinary
business
+
Dividends from disposals
>12% growth per year
100% pay-out of capital
gains
Net income growth
>12% per year
Auna ~ €1/share
Leverage always < 1.4x
Additional non-strategic
disposals
22
Note: Dividend policy to be approved at General Shareholders’ Meeting
The disposal of non-strategic assets will generate
future additional dividends
Assets sold in 2005
(excluding Auna)
(€ million)
Smartcom
Real estate
assets
REAL ESTATE ASSETS
408
+
§
113
§
+
Sidec
Assets in excess of €1 billon to be disposed
104
Endesa’s total real estate assets in Spain > 43
million m2
Identified 13 estates of 3 million m2 valued** by
Jones Lang Lasalle in ~ €750 million (once
urban permits obtained)
+
5.33% E. Italia
159
+
Other *
128
Total
912
OTHER NON-STRATEGIC ASSETS
§
§
§
3% REE
10% EUSKALTEL
50% ALTEK (Turkey)
Market
valuation in
excess of
€200 million
Capital gains ~225
* Nueva Nuinsa, Lydec and Mundivía
** Valuation has been confirmed by IREA
23
Strong organic EBITDA growth
Investment Plan
2005-2009 (€ billion)
7,500
Total: 14.6
Latam
2.5
Europe
1.8
CAGR 2004-2009 (%)
EBITDA (€ million)
4,521
Total
10-11%
2,225
Latam
7-9%
1,050
Europe
13-15%
4,200
Spain and
Portugal
*
1,522
535
Spain & Portugal
10.3
2,472
2004
Note: All figures reported in IFRS
* Includes -€8 million of other businesses
10-12%
Target 2009
24
EBITDA growth reinforced by efficiency plan
launched in 1H2005
Margin improvement in 2009 vs. 2004 (€ million)
In 2007, 70% of
the targets
achieved
65
320
140
50
70
15
70
525
285
Improvement
in contribution
margin
240
Improvement
in fixed costs
165
155
Spain and Portugal
Europe
Latam
Note: In addition, corporate procurement optimisation plan under implementation
Total
25
Spain: growth through a unique and valuable asset
portfolio
EBITDA 2004-2009 (€ million)
+10-12%
CAGR
250
320
1,158
4,200
2,472
2004
Activity
increase
Operating
Regulatory
efficiency
review
improvements
2009
26
Spain: growth in demand and installed capacity
New installed capacity (MW)
12,400
5,000
+4,000
GWh
Impact of increased activity on
EBITDA 09 vs. 04 (€ million)
§ Higher production under ordinary
regime (20,000 GWh)
480
§ Higher production under special
regime (4,000 GWh)
310
§ Increase in market margins
440
6,150
3,000
Islands
+4,000
GWh
3,750
Renewables &
cogeneration
1,200
CCGT
1,200
2004
4,400
+16,000
GWh
§ Impact on regulated distribution
210
margin driven by increase in
demand (CAGR=4%) and inflation
§ Reduced production in less
efficient plants
(282)
Target 2009
TOTAL
1,158
27
Spain: efficiency plan based on specific
initiatives already in progress
60x5 Plan already in
place
§ Launched in March
2005
§ Identified 60
initiatives
generated by a
‘bottom-up’
approach
§ Each initiative
already has an
implementation
plan, a calendar
and a project
manager
§ EBITDA impact of
~€200 million in
2006
Efficiency plan breakdown in 2009
Key initiatives
(€ million)
Distribution
Generation
80
65
§ Project ‘Meta’ for quality
improvements
§ Project ‘Micro’ for efficiency
improvements
§ Review of supplier terms
30 110
90
155
Commercialisation 10 45 55
Cost improvement
§ Project ‘Lean’ for cost reductions
and availability improvements
§ Improved fuel specifications
management
§ Optimisation of wholesale market
policies
§ Development of valueadded services
§ Optimisation of client
portfolio
TOTAL: 320
Operating improvements with impact on
contribution margins
28
Spain: conservative regulatory assumptions
EBITDA impact
2009 vs. 2004
(€ million)
Distribution
Return on network expansion investments vs. current
revenue model based on demand growth and efficiency
factor (impact on Endesa proportional to its market
share in distribution)
+300
Generation
on the
islands
Payment of fuel costs and returns on realised
investments, as per Royal Decree 1747/2003 and
further Ministerial Orders
+150
Revenue cap
No revenue recognition >€36/MWh in hydro and nuclear
-200
+250
This scenario assumes the elimination of the current CTC
mechanism and a tariff increase of only 3% per year
Regulatory scenarios of other market participants would provide an
improvement of €500 million by 2009
29
Europe: a strong growth platform
EBITDA 2004-2009 (€ million)
+13-15%
CAGR
195
320
1,050
535
2004
Italy
(1) Includes €105 million due to SNET’s consolidation
France
(1)
2009
30
Europe: operational improvements and growth
opportunities
Market entry
Efficiency
improvements
Organic
growth
ITALIY
R
FRANCE
R
POLAND
§ Attractive market due to size, growth potential and location
§ Market knowledge due to Endesa’s current presence
§ Endesa able to achieve significant efficiency improvements
§ Project IRR ~ 12%
31
Italy: growth is driven by new
generation capacity
Installed capacity (MW)
+1,755 MW
+31%
7,475
Renewables
6,590
5,720
CCGTs
Radical
change in
mix
Hydro
Coal
Fuel Gas
2001
2005
2009
32
Italy: unit margins maintained in a market with
declining prices
Renewables plan
covers green
certificate needs
§ Increase of 425MW in 2005-2009
Margin improvement
due to change in mix
and access to more
competitive gas
§ Re-gasification plant of Livorno (25%): 2bcm
off-take in 2007
Improved operating
efficiencies of €95
million in 2009
§ Fixed costs decrease from €6.1/MWh
(2004) to €5.2/MWh (2007)
§ Net position of green certificates from –80%
to +8%
§ Re-gasification plant of Monfalcone
(shareholding under negotiation): total plant
capacity of 8bcm
§ Improved plant performance
§ Structure downsizing
§ Optimisation of energy management and
Italy-France arbitrage
33
France: continued efficiency gains and
increased capacity
Continuous efficiency improvements
§ 55 MW of wind energy
under development
(Employees/MW)
0.59
-24%
0.45
Capacity growth
– Leahocourt
-18%
– Infinivent
0.37
§ Additional development
opportunities
– 2,000MW of CCGTs
in current locations
2001
2004
2009
§ €45 million impact in 2009
– Fixed costs reduction
– 200MW of
renewables
– EPR
– Optimisation of energy management
34
Latam: increasing contribution to net income,
cash flow and value
EBITDA 2004-2009 (€ million)
+7-9%
CAGR
65
340
323
2,250
1,522
2004
Increase in
activity
Improved
unit
margins
Note: All figures in € using forward exchange rates in each local currency
Improved
operating
efficiency
2009
35
Latam: increased volumes driven by new capacity
and demand growth
New capacity construction in Chile and
Peru (MW)
Activity increase
Generation
San Isidro II
54.8
Etevensa
Palmucho
San Isidro II
CAGR
3.5%
(TWh)
65.3
6
166
2004
Etevensa
2009
589
356
Distribution sales
(TWh)
61
2006
66.6
CAGR
5.0%
52.3
2007
2008
2009
Total
2004
2009
36
Latam: margin improvement based on efficient
asset management
Improvement in unit margins
Distribution
§ Tariff established at Codensa and
Chilectra
§ Annual readjustment in Ampla’s and
Coelce’s tariff
§ Revised tariff at Edesur agreed for
2006
Generation
§ Thin reserve margins in the region
§ Readaptation of prices in Argentina
(FONINVEMEN)
§ Increased node pricing in Chile
+ 2.3%
CAGR
+4.3%
CAGR
Improved operating efficiency of €65 million
§ Reduced losses: “Red Ampla” (€35 million)
§ Improved availability (€15 million)
§ Improved fixed costs in distribution and generation (€15 million)
37
Latam: continued increase in cash generation
Recent past
(2000-2004)
Future commitments
(2005-2009)
Cash flow to Spain: US$1,422 million
(US$ million)
250
Significant unrealised capital gains
US$ million
5,700
Rest of
portfolio
300
1,200
4,300
1,200
Enersis
1,000
750
4,200
Market value *
3,100
Dividends
Capital
reduction
Total
§ Possible additional cash increase of
US$1 billion
– IPO secondary tranche of
Endesa Brazil: US$150 million
– Change in structure of
shareholdings: US$800 million
Book value
* Market value of stake in Enersis + book value of remaining portfolio (more than US$300 million in estimated
additional value)
38
A reinforced commitment to specific targets
§ EBITDA: 10-11% annual growth
§ Net income: >12% annual growth
§ Dividend growth:
- Annual growth >12% in dividends
- Distribution of 100% of capital gains
§ Leverage: <1.4x
39
New alignment of compensation to stock
performance by the Board and Senior Management
§ 100% of variable compensation from 2005 to 2009
linked to share price performance*
§ Initial reference price €22.27/share (30 Sept 05
closing price)
§ No bonus if share price drops to €18.56/share (2 Sept
05 closing price)*
§ Reinvestment of 50% of bonus in Endesa shares
§ Bonus represents 40-70% of fixed compensation for
senior management
Note: Approved by the Board’s Executive Committee; subject to General Shareholders ’ Meeting ratification and no change of control
* Total return to shareholders versus Eurostoxx Utilities Index
40
Endesa’s business is clearly superior to that of
Gas Natural
Industrial
project
Value
Endesa + GN
Endesa
#2 in Spanish electricity sector
#1 in Spanish electricity sector
#5 in Italian electricity sector
#3 in Italian electricity sector
No presence in France
#3 in French electricity sector
#1 in Latam
#1 in Latam
Market capitalization of €26 billion
Market capitalization of €24 billion
Strategic assets given away to main
competitor
Maintaining unique assets in Spanish and
European portfolio
Value destruction from negative synergies
and integration costs
Risks
Strong track record in realising
efficiencies continues with new plan
Inexperienced management team
Experienced and committed management
team
Significant execution and regulatory risks
Consolidated growth plan
41
Endesa: stronger business, higher value
Endesa
Gas Natural
STRATEGIC PLAN
GIVING AWAY ASSETS TO MAIN
COMPETITOR
+
EFFICIENCY IMPROVEMENTS
+
+
NEGATIVE SYNERGIES AND HIGH
INTEGRATION COSTS
NON-STRATEGIC ASSET
DISPOSALS
+
+
RETURNS TO SHAREHOLDERS
REGULATORY RISK
+
+
FINANCIAL COMMITMENT OF
SENIOR MANAGEMENT
INEXPERIENCED MANAGEMENT TEAM
=
=
THE VALUE IN ENDESA
BELONGS TO SHAREHOLDERS...
...AND GAS NATURAL WOULD
DESTROY IT
42
IMPORTANT LEGAL INFORMATION
Investors are urged to read Endesa’s Solicitation/Recommendation Statement on Schedule 14D -9 when it is filed with the U.S. Securities and Exchange
Commission (the “SEC”), as it will contain important information. The Solicitation/Recommendation Statement and other public filings made from time to time by
Endesa with the SEC are available without charge from the SEC’s website at www.sec. gov and at Endesa's principal executive offices in Madrid, Spain.
Statements in this presentation other than factual or historical information are “forward -looking statements” within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements regarding Endesa’s anticipated financial and operating results and statistics are not guarantees of
future performance and are subject to material risks, uncertaint ies, changes and other factors which may be beyond Endesa’s control or may be difficult to predict.
Forward -looking statements could include, but are not limited to, statements regarding: (1) estimated future earnings; (2) anticipated increases in wind and
CCGTs generation and market share; (3) expected increases in demand f or gas and gas sourcing; (4) management strategy and goals; (5) estimated cost
reductions and increased efficiency; (6) anticipated development s affecting tariffs, pricing structures and other regulatory mat ters; (7) anticipated growth in Italy,
France and elsewhere in Europe; (8) estimated capital expenditures and other investments; (9) expected asset disposals; (10) est imated increases in capacity and
output and changes in capacity mix; (11) repowering of capacity; and (12) macroeconomic conditions. For all of these-forward looking statements, Endesa claims
the protection of the safe harbor for forward -looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Endesa disclaims any
obligation to revise or update any forward -looking statements in this presentation.
The following important factors, in addition to those discussed elsewhere in this presentation, could cause actual financial and operating results and statistics to
differ materially from those expressed in our forward-looking statements:
Economic and Industry Conditions: materially adverse changes in economic or industry conditions generally or in our markets; the effect of existing regulations
and regulatory changes; tariff reductions; the impact of any fluctuations in interest rates; the impact of fluctuations in excha nge rates; natural disasters; the
impact of more stringent environmental regulations and the inherent environmental risks relating to our business operations; and the potential liabilities relating
to our nuclear facilities.
Transaction or Commercial Factors: any delays in or failure to o btain necessary regulatory, antitrust and other approvals for our proposed acquisitions or asset
disposals, or any conditions imposed in connection with such app rovals; our ability to integrate acquired businesses successfully; the challenges inherent in
diverting management's focus and resources from other strategic opportunities and from operational matters during the process of integrating acquired
businesses; the outcome of any negotiations with partners and governments; any delays in or failure to obtain necessary regulatory approvals (including
environmental) to construct new facilities or repower or enhance our existing facilities; shortages or changes in the price of equipment, materials or labor;
opposition of political and ethnic groups; adverse changes in the political and regulatory environment in the countries where we and our related companies
operate; adverse weather conditions, which may delay the complet ion of power plants or substations, or natural disasters, accide nts or other unforeseen events;
and the inability to obtain financing at rates that are satisfactory to us.
Political/Governmental Factors: political conditions in Latin America and changes in Spanish, European and foreign laws, regulat ions and taxes.
Operating Factors: technical difficulties; changes in operating conditions and costs; the ability to implement cost reduction plans; the ability to maintain a stable
supply of coal, fuel and gas and the impact of fluctuations on f uel and gas prices; acquisitions or restructurings; and the ability to implement an international and
diversification strategy successfully.
Competitive Factors: the actions of competitors; changes in competition and pricing environments; the entry of new competitors in our markets.
43
Resultados 1S 2005
Fuerte crecimiento en todos los negocios
Endesa: stronger business, higher value
44
3rd October 2005