Filed by Gas Natural SDG, S.A. pursuant to
Rule 425 of the Securities Act of 1933
Subject Company: Endesa, S.A.
Commission File No.: 333-07654
This communication is not an offering document and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. The exchange offer will commence only (1) following approval of a final offer document by the SpanishComisión Nacional del Mercado de Valores (CNMV) and publication thereof and (2) on or after the date on which Gas Natural SDG, S.A. (Gas Natural) files a Registration Statement on Form F-4 with the U.S. Securities and Exchange Commission (SEC) relating to the exchange offer.
Investors in ordinary shares of Endesa, S.A. (Endesa) should not subscribe for any securities referred to herein except on the basis of the final approved and published offer document that will contain information equivalent to that of a prospectus pursuant to Directive 2003/71/EC and Regulation (EC) No. 809/2004. Investors and security holders may obtain a free copy of such final offer document (once it is approved and published) at the registered offices of Gas Natural, Endesa, the CNMV or the Spanish Stock Exchanges.
Investors in American Depositary Shares of Endesa and U.S. holders of ordinary shares of Endesa are urged to read the U.S. prospectus and tender offer statement regarding the exchange offer, when it becomes available, because it will contain important information. The U.S. prospectus and tender offer statement will be filed with the SEC as part of its Registration Statement on Form F-4. Investors and security holders may obtain a free copy of the U.S. prospectus and tender offer statement (when available) and other documents filed by Gas Natural with the SEC at the SEC’s website at www.sec.gov. A free copy of the U.S. prospectus and tender offer statement (when available) may also be obtained for free from Gas Natural.
These materials may contain forward-looking statements based on management’s current expectations or beliefs. These forward-looking statements relate to, among other things:
| • | management strategies; |
| • | synergies and cost savings; |
| • | integration of the businesses; |
| • | market position; |
| • | expected gas and electricity mix and volume increases; |
| • | planned asset disposals and capital expenditures; |
| • | net debt levels and EBITDA and earnings per share growth; |
| • | dividend policy; and |
| • | timing and benefits of the offer and the combined company. |
These forward-looking statements are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forwarding-looking statements, including, but not limited to, changes in regulation, the natural gas and electricity industries and economic conditions; the ability to integrate the businesses; obtaining any applicable governmental approvals and complying with any conditions related thereto; costs relating to the offer and the integration; litigation; and the effects of competition.
Forward-looking statements may be identified by words such as “believes,” “expects,” “anticipates,” “projects,” “intends,” “should,” “seeks,” “estimates,” “future” or similar expressions.
These statements reflect our current expectations. In light of the many risks and uncertainties surrounding these industries and the offer, you should understand that we cannot assure you that the forward-looking statements contained in these materials will be realized. You are cautioned not to put undue reliance on any forward-looking information.
This communication is not for publication, release or distribution in or into or from Australia, Canada or Japan or any other jurisdiction where it would otherwise be prohibited.
* * *
The following is an Investor Presentation by Gas Natural SDG, S.A. to its investors and investors in Endesa, S.A. relating to the offer by Gas Natural SDG for 100% of the share capital of Endesa.
Creating a leading, fully integrated global energy company
September 2005
gasNatural
Disclaimer and Important Legal Information
This communication is not an offering document and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. The exchange offer will be made only (1) following approval of a final offer document by the Spanish Comisión Nacional del Mercado de Valores (CNMV) and publication thereof and (2) on or after the date on which Gas Natural SDG, S.A. files a Registration Statement on Form F-4 with the U.S. Securities and Exchange Commission (SEC) relating to the exchange offer.
Investors in ordinary shares of Endesa, S.A. should not subscribe for any securities referred to herein except on the basis of the final approved and published offer document that will contain information equivalent to that of a prospectus pursuant to Directive 2003/71/EC and Regulation (EC) No. 809/2004. Investors and security holders may obtain a free copy of such final offer document (once it is approved and published) at the registered offices of Gas Natural, Endesa, the CNMV or the Spanish Stock Exchanges.
Investors in American Depositary Shares of Endesa and U.S. holders of ordinary shares of Endesa are urged to read the U.S. prospectus and tender offer statement regarding the exchange offer, when it becomes available, because it will contain important information. The U.S. prospectus and tender offer statement will be filed with the SEC as part of its Registration Statement on Form F-4. Investors and security holders may obtain a free copy of the U.S. prospectus and tender offer statement (when available) and other documents filed by Gas Natural with the SEC at the SEC’s website at www.sec.gov. A free copy of the U.S. prospectus and tender offer statement (when available) may also be obtained for free from Gas Natural.
These materials may contain forward-looking statements based on management’s current expectations or beliefs. These forward-looking statements relate to, among other things: management strategies; synergies and cost savings; integration of the businesses; market position; expected gas and electricity mix and volume increases; planned asset disposals and capital expenditures; net debt levels and EBITDA and earnings per share growth; dividend policy; and timing and benefits of the offer and the combined company.
These forward-looking statements are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including, but not limited to, changes in regulation, the natural gas and electricity industries and economic conditions; the ability to integrate the businesses; obtaining any applicable governmental approvals and complying with any conditions related thereto; costs relating to the offer and the integration; litigation; and the effects of competition.
Forward-looking statements may be identified by words such as “believes,” “expects,” “anticipates,” “projects,” “intends,” “should,” “seeks,” “estimates,” “future” or similar expressions. These statements reflect our current expectations. In light of the many risks and uncertainties surrounding these industries and the offer, you should understand that we cannot assure you that the forward-looking statements contained in these materials will be realized. You are cautioned not to put undue reliance on any forward-looking information.
This communication is not for publication, release or distribution in or into or from Australia, Canada or Japan or any other jurisdiction where it would otherwise be prohibited.
2
Agenda
Transaction overview
Transaction benefits
Combined company position
Financial overview
Conclusions
3
Creating a leading, fully integrated global energy company
Transaction overview
Transaction benefits
Combined company position
Financial overview
Conclusions
A transforming transaction to accelerate profitable growth
Global leading integrated gas and power company with strong energy management capabilities
Complementary, high-quality asset positions in fast growing markets
Client-focused multinational leader with over 30 million customer accounts
5
Transaction details
The tender offer envisages two simultaneous processes in Spain and the US
Tender offer for 100% of the share capital of Endesa by Gas Natural
Offer consideration: 65.5% in shares and 34.5% cash
€7.34 in cash and 0.569 Gas Natural shares for each Endesa share
Tender offer implies a value of €21.301 for each Endesa share, or a premium of
14.8% to Endesa’s closing price the day before the offer
19.4% to Endesa’s average price over the last 6 months
The offer is conditioned on reaching a minimum 75% of Endesa and on the removal of existing limitations in the by-laws of Endesa (e.g. the 10% voting right limit)
Endesa’s shareholders will benefit from an enhanced strategic positioning while immediately receiving a premium for their shares
Note:
1 Based on Gas Natural’s share price of €24.53 as of 02 September 2005 (last closing, pre-announcement)
6
Expected transaction timetable
2005 2006
Sep Oct Nov Dec Jan Feb Mar Apr
Announcement and filing with CNMV Filings to regulator (“CNE”) and Antitrust Authority
Regulatory review
CNE, Antitrust and Government evaluations Regulatory suspension lifted
Spanish Tender Offer
CNMV approval Tender Offer period
Gas Natural EGM approves capital increase
US registration / Tender Offer
Announcement
US shareholders receive offer document Tender Offer period
7
Complementary core skills and asset positions
Gas Natural
Flexible and competitive gas sourcing on global basis
Access to equity gas, with partnership with Repsol YPF
Successful CCGT build-up strategy
Strong LNG management capabilities
Unique track record in gas distribution build-out and operation Highly customer-focused business
Endesa
Long-standing track record in operating generation assets
Early mover into high growth markets
Proactive expansion into LatAm has established Endesa as leader Successful track record in Italy, including repowering plants
Strong electricity distribution operator
A leading global integrated utility, with a unique gas position
8
Transaction fully in line with Gas Natural’s commitment to shareholders
Gas Natural’s objectives
LEADING INTERNATIONAL ENERGY GROUP ACROSS GAS VALUE CHAIN
CLEAR STRATEGIC PRIORITIES
Gas supply with equity gas position Electricity business Gas distribution Multi-product offer in Spain
Impact of transaction
Joint leading position in key international growth markets with more than 30 million customer connections in 11 countries
Additional growth opportunities in LNG markets New Group becomes a market leader in power generation Overlapping gas and electricity in key distribution areas Enhanced multi-product opportunities in liberalised markets, especially dual fuel
Expected solid and profitable growth, with diversified EBITDA and flexible financial structure
Note: Data presented post proposed disposals
9
Creating a leading, fully integrated global energy company
Transaction overview
Transaction benefits
Combined company position
Financial overview
Conclusions
10
Key transaction benefits
Creates a leading world class integrated gas and power company, with a customer-oriented business model
Strong and balanced positions in high growth markets
Addresses regulatory concerns, making the Spanish energy sector more competitive
Significant synergy potential
11
A global leader in the energy sector
Combined market positions
No.1
Electricity and gas in Spain1
No.1
Electricity and gas in LatAm
No.3
Global LNG supply
No.3
Global customer connections2
Global utilities – ranking by customer connections2
(m)
40 30 20 10 0
33.5
Enel
32.9
E.ON
31.2
New Group
31.0
RWE
27.7
Tokyo Electric
15.2
GDF
Note:
1 By customers, post proposed disposals
2 Post proposed disposals; listed companies only, presented on consolidated basis; includes only gas and electricity customers; Source: Company estimates
12
An integrated, customer-oriented business model
Upstream
Complementarity
Integration of positions in upstream/midstream with generation, and distribution/supply Improve quality of service
Midstream
Pipelines Fleet
Power generation and gas supply
Distribution
Wholesale
/ Energy
Management
Complementarity
Trading and risk management skills Physical backing in fuels, production and wholesale
Retail
GLOBAL CUSTOMER BASE
13
Strong and balanced positions in high growth markets 1
LNG flows
Expected LNG flows Pipeline Project pipeline Regasification plant project Exploration blocks Existing regasification plant Liquefication plant project
LNG
JV with Repsol YPF gives access to LNG reserves No. 1 Atlantic trade Fleet of 12 LNG tankers
Italy
No. 4 Power generation No. 5 Gas distribution 2
LatAm 3
No. 1 Power generation No. 1 Power distribution No. 1 Gas distribution
Iberia
No. 1 Power supplier No. 1 Power distribution No. 1 Gas distribution No. 2 Power generation
Notes:
1 Data presented post proposed disposals
2 Excluding municipal utilities
3 Excluding state-owned companies Source: Company estimates
14
A leader in top growth markets
European gas
(bcm)
100 80 60 40 20 0
CAGR: 2.2%
CAGR: 6.2%
EU15 CAGR 1.2%
2005 2006 2007 2008 2009 2010
Spain
Italy
Source: European Commission, European Energy and Transport—Trends to 2030
European electricity
(TWh)
400 350 300 250 200
CAGR: 3.0%
CAGR: 3.1%
EU15 CAGR 1.9%
2005 2006 2007 2008 2009 2010
Spain
Italy
Source: European Commission, European Energy and Transport—Trends to 2030
Global LNG growth
(bcm)
800 700 600 500 400 300 200 100 0
1985 1990 1995 2002 2010E 2020E 2030E
Europe
Asia
North America
Source: Company estimates
LatAm energy investments requirements 1
(US$bn)
120 100 80 60 40 20 0
Natural gas transmission and distribution
Electricity generation²
Electricity transmission and distribution
Notes:
1 On cumulative basis; 2003-12
2 Equivalent to 90 GW of new capacity (39% Brazil, 44% Mexico, 17% Other countries) Source: EIA, Platts, Brazilian Government and Company estimates
15
Restructuring of the Spanish power sector 1
Gas Natural/Endesa generation mix
CHP/ Renewables 8%
Nuclear 20%
CCGT 15%
Fuel/Gas 9%
Coal 18%
Hydro 30%
Spanish market generation mix 2
CHP/ Renewables 10%
Nuclear 14%
CCGT 13%
Fuel /Gas 12%
Coal 20%
Hydro 31%
Proposed asset sales will strengthen gas and electricity competition in Spain
New Group’s generation mix in line with Spanish market
Combined company will provide better quality of service in both gas and electricity
Notes:
1 Pro-forma data presented post proposed disposals; mainland only; presented on equity share basis; based on 2004 installed capacity
2 Includes Endesa, Gas Natural, Iberdrola, HC, Union Fenosa, and Viesgo Source: Company estimates
16
Planned asset disposals and agreement with Iberdrola
Generation in Spain
Certain generation assets
Gas distribution
= 1.25 million customer accounts
Electricity distribution
Certain distribution assets
International
Endesa’s interest in SNET Certain Italian assets of Endesa
Divestitures in Spain to comply with regulatory and antitrust requirements
International divestitures of activities with no strategic fit
Agreement with Iberdrola expected to allow fast disposal
Source: Company estimates
17
Significant synergy potential
Corporate
€85m
Corporate services Administrative structure/ overhead
Commercial
€175m
Economies of scale in customer service Billing Commercial Marketing
Information technology
€90m
Optimisation of operations Maintenance costs System overlap
Distribution
Purchasing
Third-party services
Current estimate of potential annual cost savings = €350m by 2008
Estimated potential annual savings from increased efficiencies of = €75m will be re-invested in improved quality of service
Additional savings of €30m in LatAm have been estimated on a preliminary basis, but have not been included Potential revenue synergies have not been included
18
Creating a leading, fully integrated global energy company
Transaction overview
Transaction benefits
Combined company position
Financial overview
Conclusions
19
A global leader in energy
Italy: Power generation
= 3,800MW
Italy: Gas distribution and supply
Poland: Power generation
330 MW
Turkey: Power generation
40 MW
0.3 million gas customers
Portugal
0.2 million gas customers 245MW
Puerto Rico
271MW LNG plant
LatAm: Gas/power distribution and supply
4.6 million customers
10.9 million electricity customers
LatAm: Power generation
14,353MW
2,000MW interconnection capacity
Gas Natural Endesa
Spain: Gas/power distribution and supply
= 3.7 million gas customers
= 0.4 million gas customers
= 10.8 million electricity customers 0.3 million electricity customers
Spain: Power generation
1,914MW
= 20,100MW
Gas contracts/LNG (excl. LatAm)
Contracted gas
25.0Bcm 3.5Bcm
Contracted LNG fleet
Existing ships (702,000m3) In construction (138,000m3)
Morocco: Power generation
128MW
Basic infrastructure
Maghreb pipeline Medgaz
Algeria
Gas exploration projects Integrated LNG project
Note: Capacity presented on attributable capacity basis; customers accounted for on a consolidated basis; information presented before proposed asset disposals Source: Annual reports and Company estimates
20
Gas: benefits from increased scale, flexibility and diversity
Better positioned to pursue equity gas opportunities
Partnership with Repsol YPF
Integrated project in Algeria (Gassi Touil)
Exploration block (Gassi Chergui) Well diversified and flexible procurement position including 15% targeted equity gas
Optimisation of procurement portfolio
Stronger market position vis-à-vis suppliers Gas
Additional 3-5 bcm/yr expected to be contracted by Endesa by 2009 1
Gas Natural supply to Endesa (3 bcm) becomes flexible supply
Enhanced LNG position
Better trading/arbitrage potential, including flexibility in natural gas Opportunity in Italian market for LNG regas terminal Optimise use of LNG fleet capacity Potential for additional supply flexibility
Greater diversification and flexibility of demand
Note:
1 Endesa presentation 8 July 2005
21
Gas procurement position
Estimated incremental contracted volumes
(bcm pa)
20 15 10 5 0
6.5
(3.0)
3—5
> 6.5
> 13
Endesa 2005
Gas Natural supply to Endesa
Endesa incremental volume 2009E
Gas Natural incremental volume 2009E
Total
Note: In addition to Gas Natural’s volumes as of 2005; excludes LatAm; Data presented post proposed disposals Source: Company estimates
Estimated supply sources
Norway 8%
Libya 3%
Trinidad & Tobago 15%
Nigeria 20%
Algeria 37%
Qatar 18%
Note: As of 2008; Data presented post proposed disposals Source: Company estimates
Expected Endesa European short position of 3—5 bcm per year from 2008/09
Gas Natural supply to Endesa (3 bcm) becomes flexible supply
New Group expected to have a well diversified and flexible procurement position including 15% targeted equity gas
22
Power in Spain: benefits from optimal portfolio
Optimisation of generation and fuel position
Commodity mix
(coal / gas / CO2 / hydro)
Twin 800 MW CCGT plants sharing site with Endesa (San Roque, Besos)
Balance between production and consumption
Endesa is short in generation
Gas
Gas Natural contributes with 1,600 MW of CCGT
+ Cartagena (1,200 MW) CCGT project expected on line in 1Q 2006 Further build-out of CCGT will maintain balanced position
Spanish market leader
A leader in CCGT with competitive gas supply Combined position in renewables creates platform for further expansion in Spanish market
In line with regulatory targets (Plan de Energías Renovables 2005 -2010)
Note: Data presented post proposed disposals
23
Evolution of CCGT portfolio
Combined entity will become a market leader in gas-fired generation with expected CCGT capacity of 8,400MW by 2009
(MW installed)
9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
1,200
800
800
1,200
1,600
3,600
2,000
3,200
5,200
2004 2005E 2009E
Gas Natural sites
Endesa sites
Note: Data presented post proposed disposals Source: Company estimates
24
Evolution of renewables portfolio
Strong renewables platform for expansion
(MW installed)
4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0
= 2 .3x
1,753
46 195 218 279
992
23
46 197 221
643
1,288
134
67 207
228
874
1,694
164
67 230
228
932
2,013
194
4,106
96 233 228
932
2,423
194
2005E 2006E 2007E 2008E 2009E
Endesa Wind Gas Natural Cogen
Gas Natural Wind Endesa Small Hydro
Endesa Cogen Endesa Other
Note: Data presented post proposed disposals Source: Company estimates
25
Regulated businesses: strong commitment to invest 1
Electricity distribution
Endesa Union Fenosa
Iberdrola
Viesgo
Edp / HC
Source: Unesa, Company estimates
Gas distribution
Endesa
Gas Natural
Edp / HC / NaturCorp
Significant capex needs in regulated gas provide for high growth potential in stable regulatory environment; customer connections are expected to grow from 5.0m as of H1 2005 to 6.5m at end 2009
Strong focus on efficiency and quality of service in electricity and gas distribution
Proposed transfer to final customers of benefits from optimisation of procurement costs and operating and financial synergies, through reinvestment in quality of service improvements
Note:
1 Before proposed disposals
26
Italy: well placed to increase market share
Favourably positioned for electricity and gas convergence growth
Tavazzano
1,760 MW
Monfalcone
976 MW
Monfalcone
Ostiglia
1,460 MW
Terni
530 MW
Livorno
Florinas
20 MW
Cotronei
369 MW
Fiume Santo
960 MW
Taranto
Catanzaro
115 MW
Trapani
170 MW
Brancato, Nettis, Smedigas
0.3m gas customers
Fossil-fuel plants Hydroelectric plants Wind-powered facilities
Planned LNG regasification facility
Note: Installed capacity presented on a consolidated basis, before proposed disposals Source: Company estimates
Endesa proactive mover into liberalising generation market through acquisition of Enel genco Repowering and greenfield CCGT projects pursued with the aim of increasing output Gas Natural has established a portfolio of gas customers through targeted acquisitions, with the objective to achieve 700,000 customers by 2009 Both Gas Natural and Endesa are planning LNG regas facilities
New Group should be favourably placed to take advantage of gas and power opportunities across the value chain
27
LatAm: leading positions in key growth markets
Mexico
1.1m gas customers
Puerto Rico
271MW regasification plant
Dominican Republic
29MW
Colombia
1.5m gas customers 2m electricity customers 2,609MW
Peru
0.9m electricity customers 1,436MW
Chile
1.4m electricity customers 4,477MW
Gas Natural Endesa
Brazil
0.7m gas customers 4.4m electricity customers 1,039MW
2,000MW interconnection capacity
Argentina
1.3m gas customers 2.1m electricity customers 4,492MW
Combined LatAm business with leadership positions in gas and power in key growth markets New Group will distribute power or gas in Buenos Aires, Bogotá, Santiago de Chile, Lima, Rio de Janeiro, São Paulo, Monterrey, and Mexico DF
Well placed to benefit from increases in demand, prices for generation and distribution volumes and tariffs Continued commitment to invest for organic growth in selected target markets
Enhanced opportunities from combined Gas Natural and Endesa positions and skills
Note: Customers accounted for on a consolidated basis, capacity presented on an attributable capacity basis; map only shows selected assets Source: Company estimates
28
Creating a leading, fully integrated global energy company
Transaction overview
Transaction benefits
Combined company position
Financial overview
Conclusions
29
Capital expenditure plan 2006–2009
Plan to invest = €17bn in organic growth until 2009
Gas Natural
Other 1%
LatAm 14%
Europe 11%
Up + Midstream 18%
Generation 27%
Distribution 29%
Pro forma
LatAm 18%
Europe 12%
Up + Midstream 8%
Generation 34%
Distribution 28%
Endesa
LatAm 18%
Europe 12%
Distribution 29%
Generation 41%
Source:
Company estimates
Heavy emphasis on quality of service in regulated business
Exploiting energy needs in Spain while optimising asset portfolio
Continue gas power integration and management in Europe and LatAm
Leverage on access to equity gas and world LNG trade
Build an integrated gas and electricity position in Italy
30
Diversification of EBITDA1
Gas Natural—€1.4bn 2
Generation 4%
Up + Midstream 18% Europe 2%
LatAm 21%
Other 2%
Gas distribution 53%
Endesa—€4.9bn 2
Generation 33%
Elec. Distribution 19%
LatAm 33%
Europe 11%
Elec. Supply 2%
Other 2%
New Group pro-forma 2009E 3
Up + Midstream 5% Other 3%
Gas distribution 9%
Elec. Distribution 16%
Generation 28%
Europe 7%
LatAm 32%
Notes:
1 EBITDA 2004A. EBITDA is not a measure under Spanish GAAP or IFRS. Please refer to the audited financial statements of Gas Natural and Endesa for historical information in accordance with Spanish GAAP
2 Gas Natural and Endesa’s 2004 EBITDA calculated using Spanish GAAP figures
3 Pro-forma 2009E Gas Natural/Endesa’s EBITDA calculated using IFRS figures Source: Company estimates
31
Financial structure
Net debt
(€bn)
35
30
25
20
15
10
5
0
3.0
19.8
7.8
30.6
= 22.0
Gas Natural H1 2005
Endesa H1 2005
Acquisition debt
Combined entity pro-forma H1 2005
Debt reduction (disposals and net cash flow)
2007E
Source: Company estimates
Planned asset disposals 2006-07
An agreement has been signed with Iberdrola for most of the disposals
The agreement with Iberdrola provides confidence to reduce the execution risk of disposal plan
Objective of “A” rating
Ability to invest in core regulated and non-regulated activities unaffected by transaction
Agreement with Iberdrola expected to result in fast disposal
32
Expected earnings and dividends accretion1,2
Earnings
Dividends
Expected EPS impact
Expected significant
EPS accretion from year one
Shareholders expected to benefit from dividends accretion due to
Expected earnings accretion3
Expected dividend growth in line with net income growth Maintain dividend payout target of 52-55% by 2008
Expected EPS evolution3
(€)
2.7 2.3 1.9 1.5
2006E 2007E 2008E 2009E
New Group Gas Natural
Positive impact expected for shareholders of New Group
Notes:
1 New Group will have the discretion to change its dividend policy at any time, and shareholders may not receive the amounts indicated above
2 Before extraordinary items
3 Company estimates based on IBES EPS projections of €1.66 (2006) and €1.62 (2007), and a long-term growth rate of 7.2% used for 2008 and 2009 for Endesa. Based on IBES EPS projections of €1.66 (2006) and €1.80 (2007), and a long-term growth rate of 5.0% used for 2008 and 2009 for Gas Natural; after planned disposals
33
Creating a leading, fully integrated global energy company
Transaction overview
Transaction benefits
Combined company position
Financial overview
Conclusions
34
Positioning as leading integrated gas and electricity company
Strategic priorities
Gas & Power
Full integration along gas chain
Benefits from increased scale, flexibility and diversity in the gas chain Benefits from optimal generation portfolio Increased opportunities to optimise between gas and electricity
Enhanced commodity mix (gas / coal / CO2 / hydro)
Regulated business
Efficiency improvement / focus on quality of service Investment in growth areas
Supply
Strong customer focus Multi product offering
Strong energy management capabilities
International market leadership in key growth markets with presence in 11 countries
Source: Company estimates
35
Value creation for shareholders
Creating a fully integrated energy company…
Leader in key growth markets in Europe and LatAm …
… with an improved gas position and more balanced generation portfolio …
… together with expected synergies from the combination …
... and our proven track record of profitable growth
… enhanced cash flow generation through a clear and focused management vision
Value creation for shareholders
Expected EPS and CEPS accretion
Attractive dividend policy
… with a solid financial position, to pursue growth opportunities in global markets
36