FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of January, 2006
Commission File Number: 333-07654
ENDESA, S.A.
(Translation of Registrant's Name into English)
Ribera del Loira, 60
28042 Madrid, Spain
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F | X | Form 40-F |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
| Yes | No | X |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
| Yes | No | X |
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
| Yes | No | X |
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
| Endesa 2005 Results Endesa: stronger business, greater value 18 January 2006 |
| Endesa: stronger business, greater value Excellent 2005 results Outstanding prospects for 2006 Trend clearly exceeding 2009 targets Reaffirming Endesa's greater value |
| Excellent 2005 results €M 2004 2005 Change Sales 13,590 17,508 +30% Gross Margin 7,373 9,126 +24% EBITDA 4,521 6,020 +33% EBIT 2,846 4,244 +49% Net financial expenses -1,087 -1,257 +16% Net income (ex. asset disposals) 1,149 1,841 +60% Net income 1,253 3,182 +154% 01.01.05 31.12.05 Change Financial leverage 1.5x 1.1x -0.4p |
| Strong growth in results €M 2004 2005 Change Sales 6,648 8,761 +32% Gross margin 4,352 5,202 +20% EBITDA 2,472 3,266 +32% EBIT 1,432 2,264 +58% Net financial expenses -501 -602 +20% Net Income 888 1,358 +53% |
| Excellent results underscore strength of European business €M 2004 2005 Change Sales 2,557 3,598 +41% Gross margin 830 1,223 +47% EBITDA 535 887 +66% EBIT 370 618 +67% Net financial expenses -63 -63 +0% Net income (ex. asset disposals)1 169 257 +52% Net Income 169 425 +151% 1 Also excludes €107M reflecting the future fiscal benefit due to the 2005 balance sheet revaluation, which is included in Net Income (mandatory as per IFRS). Note: Snet consolidation starting September 2004 (full consolidation would have increased EBITDA by €106M) |
| Strong growth in results €M 2004 2005 Change Sales 4,297 5,149 +20% Gross margin 2,180 2,698 +24% EBITDA 1,522 1,878 +23% EBIT 1,054 1,376 +31% Net financial expenses -453 -540 +19%1 Net Income before minorities 431 710 +65% Net Income 127 262 +106% |
Cash returns to Spain in line with targets 2004 2005 US$ M US$ M Strategic plan 2004-2009 Dividends and interests received 46 86 750 Capital reductions 221 195(1) 250 Disposals 8 27(2) Total 275 308(3) 1,000 1 Includes income from Elesur of USD41M 2 Sale of CEPM for USD 24 M and EEB share buyback for USD3M 3 Does not include income from tax shield of USD 104 M in 2005 |
| Conclusion: excellent 2005 results Annual Commitment to 2009 2005 Achieved EBITDA growth: +10-11% +33% ü Net Income growth: >12% 60-154% ü Growth in dividend from ordinary activities: >=12% 54% ü Dividend from disposals: 100% capital gains 1,341 M€ ü Financial Leverage: <1,4x 1.1x ü First year divident of €2,541M out of more than €7 bn committment |
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.This presentation contains certain “forward-looking statements” regarding anticipated financial and operating results and statistics and other future events. These statements are not guarantees of future performance and are subject to material risks, uncertainties, changes and other factors which may be beyond Endesa’s control or may be difficult to predict. Forward‑looking statements include, but are not limited to, information regarding: estimated future earnings; anticipated increases in wind and CCGTs generation and market share; expected increases in demand for gas and gas sourcing; management strategy and goals; estimated cost reductions; tariffs and pricing structure; estimated capital expenditures and other investments; expected asset disposals; estimated increases in capacity and output and changes in capacity mix; repowering of capacity and macroeconomic conditions. For example, the EBITDA and dividends targets for 2004 to 2009 included in this presentation are forward-looking statements and are based on certain assumptions which may or may not prove correct. The principal assumptions underlying these forecasts and targets relate to regulatory environment, exchange rates, divestments, increases in production and installed capacity in the various markets where Endesa operates, increases in demand in these markets, allocation of production among different technologies increased costs associated with higher activity levels not exceeding certain levels, the market price of electricity not falling below certain levels, the cost of CCGT and the availability and cost of gas, fuel, coal and emission rights necessary to operate our business at desired levels. 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 exchange rates; natural disasters; the impact of more stringent environmental regulations and the inherent environmental risks relating to our business operations; the potential liabilities relating to our nuclear facilities. Transaction or Commercial Factors: any delays in or failure to obtain necessary regulatory, antitrust and other approvals for our proposed acquisitions or asset disposals, or any conditions imposed in connection with such approvals; 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, repowering or enhancement of 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 completion of power plants or substations, or natural disasters, accidents 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; changes in Spanish, European and foreign laws, regulations 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 fuel and gas prices; acquisitions or restructurings; 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. Further information about the reasons why actual results and developments may differ materially from the expectations disclosed or implied by our forward-looking statements can be found under “Risk Factors” in our annual report on Form 20-F for the year ended December 31, 2004. No assurance can be given that the forward-looking statements in this document will be realized. Except as may be required by applicable law, neither Endesa nor any of its affiliates intends to update these forward-looking statements. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ENDESA, S.A. | |
| Dated: January 18th, 2006 | By: /s/ Álvaro Pérez de Lema |
| Name: Álvaro Pérez de Lema | |
| Title: Manager of North America Investor Relations |