Endesa Sa Madrid

Hello, good morning, and welcome everyone to this event where, as you can see from the agenda now on the screen, our CEO, Jose Bogas, and our CFO, Marco Palermo, will first comment on the results achieved in 2025, and then we will present the updated strategic plan for the next three years. After some closing remarks, we will open the Q&A session. Thank you, and now I would now like to turn to Mr. Bogas. Thank you.

Thank you, Mark. Good morning and welcome to everybody, everyone. Let me start with the results achieved this year, which I'm sure speak for themselves. EBITDA reached 5.8 billion euros comfortably above the upper end of our guidance, while net ordinary income reached 2.3 billion euros, exceeding target and representing an 18% increase year on year. Economic and financial performance was particularly strong, underpinned by robust cash generation and disciplined execution. We remain fully engaged to our capital allocation strategy, successfully delivering on the main strategic priorities set last year, as we will discuss later. This solid performance reflects our ability to deliver on our commitments and our continued focus on value creation for shareholders. We will propose a dividend of 1.58 euros per share at the next annual general meeting, well above our target set and 20% higher year on year. On slide number five, we would like to highlight the steady progress made in executing our capital allocation roadmap throughout 2025. Several transactions were successfully completed during the year, strengthening both our asset base and our commercial capabilities. In February 2025, we closed the acquisition of 600 MW of hydroasset, while in July we completed the acquisition of the remaining stake in Cetasa, fully consolidating its wind asset portfolio. Together with the entry of a partner into our solar asset portfolio, this transaction illustrates how we are reducing the risk profile of our generation asset. And finally, the alliance with Maso Rans, fully consolidated since February 9, 2026, enhanced our commercial offering through telecommunication solutions, reinforcing our commercial strategy and strengthening customer loyalty. Slide number six provides an overview of the progress made on capital allocation and execution of our key industrial KPIs. Over the period, we invested 3.2 billion euros, more than 50% above versus previous year's figure, 77% being allocated to grid and renewable assets. This strong effort led to an improvement in the interruption time index, while total losses remained broadly stable, largely impacted by non-manageable losses. In renewable, the integration of approximately 1.2 gigawatts of new capacity enabled us to reach 80 percent emission-free installed capacity. finally in the customer segment we progressed on a strategic shift towards higher value customers reshaping our customer mix with a clear focus on non-pair loyalty and value creation this strong operating performance turns into outstanding value creation for our shareholders and i am now on slide number seven Nothing better illustrates the success of our long-term vision and the resilience of our business model than the consistent returns delivered to our shareholders. Over the 2040 to 2025 period, Endesa has clearly outperformed the main benchmark indexes, underscoring the strength and credibility of our value proposition. As mentioned earlier, we will propose a dividend of 1.58 euros per share, excluding Treasury stock outstanding as of 31 December 2025, which would imply a dividend yield of more than 5%. Finally, our 2 billion share buyback program is currently around 30% executed, as we remain fully committed to completing this within the planned timeframe. In fact, a new tranche of 0.5 billion euros has been approved and will be completed up to July 2026. And now I will hand over to Marco, who will go into the financial results in more detail.

Thank you, Pepe, and good morning, everybody. This year's strong results were achieved in a market context characterized by demand growing for the second consecutive year, increasing 2.9% year-on-year and 2.0% on an adjusted basis. In Endesa distribution area, where adjusted demand is growing by 2.8%, consumption increased across all customer segments. This reflects not only Spain's economic recovery during the year, but also a rebound in industrial and services demand as part of a broader sector-wide increase in energy usage. This clearly marks a turning point in a trend. The sharp rise in connection requests seen in recent years is now starting to materialize, representing a unique opportunity to reindustrialize the economy and to electrify the demand. Turning now to the price scenario on slide 10, although the average bull price has remained broadly unchanged year-in-year, the intraday volatility has been extremely high, ranging from €145 per megawatt-hour in the mid-winter to zero or even negative prices in spring, coinciding with strong renewable resources and low demand. This level of volatility has become a structural feature of a system with very high renewable penetration. Spain continues to display some of the most competitive power prices in Europe. That said, it is important to note that the final energy prices were affected by post-blockout measures adopted by the TSO, which led to a significant increase in ancillary services costs. Let me now focus on the main drivers behind our financial performance. As mentioned earlier, EBITDA reached almost €5.8 billion on our slide 11, up 9% year-on-year. This strong performance was supported by, first, generation and supply BTDA increase by 11%, driven by, in conventional generation, a strong gas management margin, reflecting the positive impact of hedges executed in previous years, partially offset by lower opportunities on the short position. In renewables, EBTDA was slightly lower, reflecting lower volumes and prices, both in wind and solar, while the hydro margin increased, driven by higher volumes and the shape effect. And supply delivered sound results across both businesses, gas and power, with power performing well despite higher ancillary services costs. Turning to networks, EBITDA increased by €0.1 billion, primarily explained by previous years' resettlements. If we go to page 12 now, all these dynamics are reflected in our integrated power and gas unitary margins. The free power margin stood at €52 MWh, representing a decrease of only 5% year-on-year, despite the increase in ancillary service costs, which weighted on results. On the other hand, gas margins reached €9 per MWh, a strong improvement driven by the factors mentioned above. Moving now to slide 13, net ordinary income came in at 2.3 billion euro, significantly above the upper end of the guidance, reflecting strong operational performance and improving the net ordinary income to EBITDA conversion ratio to 41%. DNA increased by 9%, mainly reflecting higher amortization linked to increased investment level. financial results almost flat and the effective tax rate stood at around 23.5%, no longer affected by the temporary levy that impacted last year's result. Turning to the next slide, page 14 now, we delivered strong cash generation, with FFO reaching an outstanding €4.1 billion and a cash conversion ratio of 70% FFO on EBITDA, already above the level targeted for 2027. On slide 15 now, The sound cash flow generated by the operation more than covered total investments, including 1 billion euro of inorganic investments. Over the period, net financial debt increased by 0.8 billion euro up to 10.1 billion euro, reflecting dividend payments amounting to 1.5 billion euro, as well as the execution of the share buyback program that resulted in a cash outflow of around €500 million. Gross financial debt remained almost flat, with the average cost declining to 3.3%. And with this, I will now hand over to Pepe to present the strategic plan for the next three years.