Mar Martínez, Endesa's Director of Investor Relations, outlines the 2022 - 2024 Strategic Plan

"Our long-term vision is to move towards a decarbonised and more electrified economy and one that's more focussed on customer value"

To achieve this, we've undertaken to make Endesa a 100% renewable company by 2040, ten years ahead of schedule. The fact that we have been able to bring forward our deadline for becoming a totally emission-free company by ten years, as announced at the presentation of our Strategic Plan, in line with our parent company Enel, is based on a solid portfolio of renewable projects for a total of 80 gigawatts. 

To leverage the opportunities arising from both the Spanish Integrated National Energy and Climate Plan and the European Union's new Fit for 55 strategy, Endesa estimates it will make investments of €31,000 million between 2021 and 2030, an increase of 22% compared to the predictions for 2030 published last year. Of this amount, 40% will go to increasing the generation of renewables with the construction of an additional 16 GW, thereby expanding the current installed capacity threefold; while another 40% will be spent on improving the distribution network, thanks to which we expect the regulated asset base to grow by 13% in the next ten years. 

In the short term, for the next three years, Endesa has announced ongoing progress in its planned volume of investment, with the allocation of €7.5 billion to our growth on the Spanish mainland between 2022 and 2024.

Almost 90% of this investment is directly related to the UN Sustainable Development Goals, and 80% is aligned with the European Union's taxonomy criteria, thus confirming our firm commitment to the goals of the 2030 agenda and our growing contribution to sustainability, the environment and the fight against climate change

Approximately 80% of the investment plan will be dedicated to renewable generation and distribution.  Specifically, €3,100 million will be allocated mainly to developing 4 GW of additional renewable capacity. All this means that 63% of the company's generating capacity on the mainland will come from renewable sources by the end of 2024, up from 54% today.  

In the second major category of investments - those destined to the distribution network - about €3,000 million will clearly be earmarked for the modernisation and development of new infrastructures as a key factor for the decarbonisation and electrification of the economy. This is why around 50% of this investment will go to digitalisation with a view to improving network reliability and service quality.

All this will be combined with greater investment in the electrification of demand, for which the amount allocated to the marketing business has increased by 25%. In these three years we expect sales to rise by 2%, mainly in the deregulated market, a segment where we expect a 4% growth in our customer base.

With regard to the main financial objectives, the company's gross profit (EBITDA) will increase by €700 million from €4,000 million to €4,700 million in the final year of this plan.

This increase will be supported by both the renewables business, which will provide growth of €300 million, and by the marketing business together with Endesa X, which will contribute a similar figure.

In this context, Endesa has confirmed a pay-out policy of 80% in 2021 and 70% for the period 2022-2023, extending that same pay-out one more year until 2024.

We will thus maintain a dividend policy adapted to our growth profile, while continuing to offer an attractive dividend yield of over 6% over the next three years.

This plan represents an important milestone for Endesa's strategy, bringing forward to 2040 the complete decarbonisation of the generation mix, as well as the total electrification of the customer base. This transformation will make us leaders in the fight against climate change by applying the criteria of sustainability and circularity throughout our business activity.

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