More Customers, Zero Emissions and Financial Improvements

The development of a customer portfolio, a commercial activity that represents another €900 million in the 2024-2026 plan, expects to have 7.5 million open market customers by the end of the period. "We will develop our business strategy by encouraging and helping our customers prioritise the electrification of their energy uses."

There is still a commitment to being a Zero Emissions company by 2040, with the goal of emission-free electricity production reaching 93% in Mainland Spain by 2026. With regard to gas, in addition to the recovery of margins after an unusual business year in 2023, "we expect the customer portfolio to remain at 1.8 million, of which 1.4 million are on the deregulated market. We also foresee a decrease in the use of gas to produce electricity in combined cycle plants, derived from the advance of renewable production, "said the CEO.

With regard to financial developments, the Chief Executive Officer reminded us that the goal for 2026 is to achieve a leverage ratio (net financial debt compared to gross profit, or EBITDA) of 1.4 times compared to 2.1 times by 2025 as per the previous plan. "This puts us in a position of opportunity to undertake greater investments, if the right business and regulatory circumstances are met," Mr Bogas reiterated. Net debt at the end of the plan will be between 10 and 20% lower than in 2023, somewhere between €8,000 and 9,000 million.

"In short, a plan based on the profitability and flexibility of investments, cash generation and both environmental and financial sustainability."

Review of 2023 and expansion of the Board of Directors

The Chief Executive Officer of the energy company provided an overview of the main figures for the 2023 business year corresponding to business and financial developments, and again reminded us of the unusual circumstances encountered both with regard to the market situation for gas, as well as to regulatory changes and unfavourable arbitration decisions.

With regard to investments, he especially mentioned the fact that "the total invested in 2023 amounted to €2,304 million, consistent with the previous year, a period in which Endesa recorded an all-time record for investment. Of these, 72% has been allocated to the distribution grid and renewables."

With regard to the Board of Directors, Mr Bogas extended his gratitude both to the staff and also "to the entire Board of Directors. To Flavio Cattaneo and the new directors. I would like to make a very special mention for Alicia Koplowitz, who has now completed her time as a Director of Endesa. I thank her for her support and work over the years. I would also like to welcome the new members of the Board of Directors who, should you approve, will become part of the governing body of our company starting today: Michela Mossini, Elisabetta Colacchia and Guillermo Alonso. With their inclusion, the board will now consist of 14 members," he summarised.

Anniversary: 80 Years of Leadership

The director ended his remarks with a very special mention for the anniversary that Endesa will be celebrating this coming November. He put it against the backdrop of the challenging characteristics that define the current situation to give even more significance to these eight decades of history. "We live in a turbulent and volatile environment. A situation in which everything changes quickly and that is why those companies that do not adapt to change and the new needs will not survive."

"This is not the case with Endesa," he said. "This company began its activity as a public company, and now after 80 years, it can be asserted that it is still a key company with regard to economic activity in Spain and Portugal and it is one of the most important assets of the Enel Group." How has this been achieved? "There are no special formulae, there is only work, the ability to adapt to change and strong resistance and resilience when circumstances demand and the problems intensify."

He ended his speech with this statement, expressing strong confidence in the company's current status and the direction it will take in the future. "We are Endesa, a key player in the Energy Transition, a company that gives its shareholders added value, that generates employment, that contributes to calm and constructive dialogue so that public-private collaboration is a reality, a company that knows how to run long distances and compete. Congratulations to the entire Endesa family for these 80 years and there should be no doubt that we are aiming to last at least another 80".

Corporate Governance

Endesa's Non-Executive Chairman, Juan Sánchez-Calero, explained during his speech to shareholders that in 2023 the Board of Directors approved the Implementation of Endesa's Internal Whistleblower Protection System. "To this end, we have adopted Endesa's Whistleblower Protection Policy and Endesa's Reported Incidents Management Procedure and adapted the Regulations of the Board of Directors, the Audit and Compliance Committee and the Supervision Committee for the Criminal Risk Prevention and Anti-Bribery Model," he said.

The chairman also detailed the reasons behind the incorporation of the three new directors to the governing body of the company, approved today.

The aim of these new directors is to achieve the following objectives:

  • To fill the vacancy of Alicia Koplowitz, to whom I would like to convey my recognition and gratitude for her invaluable contribution and involvement during her tenure as an independent director.
  • To consolidate compliance with the regulations that require the presence of at least forty percent of the gender that is less represented.
  • To balance the percentage of representation of the controlling shareholder who, despite owning 70% of Endesa's share capital, had so far appointed only 33% of the members of the Board of Directors.
  • To continue with a greater number of independent directors than proprietary directors appointed at the request of the majority shareholder, in accordance with internal corporate regulations and the Corporate Governance Policy, which have been designed to ensure the reconciliation of the interests of all the shareholders, with special attention being paid to minority shareholders. If the proposed resolutions are adopted, the structure of the board will be distributed as follows: 50% independent directors, 42.9% proprietary directors representing Enel, and 7.1% executives.

About Endesa

Endesa is a leading electricity company in Spain and the second largest in Portugal. In addition, it is the second largest gas operator in the Spanish market. It undertakes end-to-end business including the generation, distribution and retailing of electricity. It also offers electric mobility services, where it is one of the main operators of charging stations in Spain, and other value-added services aimed at the electrification of energy uses in homes, companies, industries and public administrations. Endesa is firmly committed to the United Nations SDGs and strongly supports the development of renewable energies through Enel Green Power España, the digitalisation of grids through e-distribución and Corporate Social Responsibility. The Endesa Foundation is also active in CSR. Our team totals around 9,000 employees. Endesa is part of Enel, Europe's largest electricity group.

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Endesa SA published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 12:13:08 UTC.