The Endesa acquisition: a story of value creation

London December 12, 2007

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Agenda Transaction rationale Synergies Conclusions 2 .

Transaction rationale Strong contribution to operating and financial growth Business diversification and wider global footprint improves risks/return profile Creation of a global leader in renewable energies Strong potential for synergies. savings and cross-transfer of best practices EPS accretion from year one A story of value creation 3 .

Endesa platform 1/2 Opportunity to leverage on Endesa’s leading positions in complementary markets to Acciona and Enel Very promising prospects based on sound fundamentals: solid economic growth strong electricity demand growth (>3%) strong presence in the mid stream gas activities limited capacity reserve margin expected increasing wholesale prices balanced generation mix 4 .

Endesa platform 2/2 Solid operating and financial performance from a diversified portfolio Efficiencies ahead of current Business Plan Iberia: Leadership in liberalized market Competitive fuel cost Growth in line with current Business Plan Latam Strong operating growth based on sound demand fundamentals Regulatory improvements Performance in line with current Business Plan Strong cash flow generation and financial capacity to accelerate growth 5 .

Endesa: Strong cash flow generation thanks to diversification A balanced capacity mix… …to serve 21.6 GW Nuclear 9% Renew.6 million customers 37. Data as of Sept-07 6 . 4% Peru 5% Hydro 37% Colombia 10% Argentina 10% Fuel-oil 19% Spain 46% CCGT 14% Brasil 23% Coal 17% Chile 6% Note: Excluding assets to be divested.

5% 3.1% 5.3% 6.5% 2006 Figures 6.3% 4.1% 5.5% 4.4% 5.Endesa: Leading position in high growth markets 48% 43% 31% 24% 15% Output Sales 29% 28% 21% 18% 17% 6% 1% Spain Market position Demand Growth 2006-12 (Cagr) Chile #1 #1 Colombia #1 #1 Peru #1 #1 Argentina #1 #1 Brazil #1 #1 3.0% 5.4% 6.5% 6.0% 7 .

Agenda Transaction rationale Synergies Conclusions 8 .

Synergies by category 1010 330 330 787 Opex & Margins Capex €mn 680 457 4% 4% Savings 11 Savings 698 475 223 Total savings Efficiencies already included in the strategic plan 223 Additional synergies/ efficiencies 2012 223 Synergies at regime further possible upside under investigation (1) Over 2006 total cost base. excluding Europe 9 .

Annual savings of €mn 680 by 2012 6%11 6% 3% 3% 4% 4% % cost base 2006 94 9 85 680 101 LatAm 216 3% 3% 37 179 2.5% 12% 12% 123 16 107 NEEP 525 97 16 81 150 22 74 54 Corporate & other 54 Distribution Energy mgmt. Total Corporate & Procurement Generation other (1) It only refers to fuel procurement 10 .5% 2.

general services. R&D CAPEX Synergies: 223 M€ Year 3: 64% Year 5: 100% 66 €mn Procurements 97 €mn Distribution 60 €mn 11 . Energy management 123 €mn 156 €mn 94 €mn IT.Synergy levers Corporate. IT. R&D EBITDA Synergies: 457 M€ Year 1: 29% Year 3: 81% Year 5: 100% 84 €mn Generation Distribution Fuel.

Maintenance) Further integration of operations and applications Corporate.Potential upside under analysis 1 Potential upsides not in current synergies Centralization of services procurement (vg. IT. Growth of trading activities in Europe Joint upstream projects development Other Optimization of Engineering and EPC activities (1) Pending to be quantified. R&D: Procurement Further potential from enlargement of procurement base Generation O&M optimization Distribution Performance improvement and best practice sharing in LatAm Energy mgmt. To be disclosed within Endesa’s new strategic plan 12 .

Agenda Transaction rationale Synergies Conclusions 13 .

Conclusions Synergy Plan approved Detailed implementation of Synergy Plan initiated Potential upside to Synergy Plan under analysis Asset disposal process on execution phase Renewable energies combination with Acciona Energía initiated New Endesa Business Plan by 1Q 2008 Endesa’s current financial capacity further enhanced post asset disposal to accelerate growth 14 .

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