ELEQ: International Endesa: 9M 2013 Endesa's Financial Results

  ELEQ: International Endesa: 9M 2013 Endesa's Financial Results

UK Regulatory Announcement

NEW YORK

                                 ENDESA, S.A.
                               and Subsidiaries

                        Consolidated Management Report
                              for the nine-month
                        period ended 30 September 2013

                           Madrid, 6 November 2013

                             Consolidated results

ENDESA reported net income of Euros 1,551 million in the nine-month period
ended 30 September 2013

ENDESA reported net income of Euros 1,551 million in the first nine months of
2013, 6.7% less than in the same period the previous year, mainly due to a
Euros 233 million reduction in net income at the Spain and Portugal business
following the introduction on 1 January 2013 of the energy sustainability tax
measures stipulated in Law 15/2012, of 27 December, which triggered an
increase in costs of Euros 490 million. Another cause of this overall
reduction are the urgent measures contained in Royal Decree Law 2/2013, of 1
February and in Royal Decree Law 9/2013, of 12 July, which caused net income
in the business unit to decline Euros 81 million, in addition to the
approximately Euros 400 million arising from the regulatory measures
introduced in 2012.

These new measures, which began to be implemented from January 2013 had, a
negative impact on net income for the nine-month period of Euros 415 million

It is important to stress that these impacts do not include those that may
arise, on 2013, from the implementation of the various regulatory measures
that are currently pending approval as explained later in the analysis of the
regulatory aspects of the business in Spain and Portugal.

The poor performance of net income in the business in Spain and Portugal was
partially offset by the Euros 122 million increase in net income at the
business in Latin America. This was largely due to the effects of Resolution
250/2013 approved on 7 May 2013 by Argentina's Energy Secretary, which
recognised the payment to Empresa Distribuidora Sur, S.A. of Euros 333 million
as compensation for the cost fluctuations which had not been passed on to the
end user between 2007 and February 2013 in relation to the amounts to be
applied under the Cost Monitoring Mechanism (MMC) adjustment, which impacted
net income to the sum of Euros 94 million.

The table below shows the breakdown of ENDESA's net income between its two
business and the year-on-year change:

ENDESA net income, January-September 2013
                    Millions  % change  % of total net
                   of Euros  3Q12      income
Spain and Portugal  1,036     (18.4)    66.8
Latin America       515       31.0      33.2
TOTAL               1,551     (6.7)     100.0

                 For additional information please refer to: 
                  http://www.endesa.com/en/accionistas/home

Contact:

International Endesa
 
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