Endesa Stock

Endesa, S.A. engages in the electricity business in all its various industrial and commercial areas.

The company also engages in the exploitation of all types of primary energy resources and the provision of industrial services or services relating to its main area of business, particularly gas business. The company would carry out the activities constituting its corporate purpose in Spain and internationally, either directly or through investment in other companies.

The company and its subsidiaries operate in the electricity and gas business, mainly in the markets of Spain and Portugal. It also supplies electricity and gas in other European markets, and other value-added products and services (VAPS) related to its main business.

Subsidiaries

The company works primarily through the following companies:

Electricity Generation: ENDESA Generación, S.A.U.

ENDESA Generación, S.A.U. comprises holdings in Gas y Electricidad Generación, S.A.U. (100%); Unión Eléctrica de Canarias Generación, S.A.U. (100%); ENEL Green Power España, S.L.U. (EGPE) (100%); and a 50% stake in Nuclenor, S.A., which owns the Nuclear Plant at Santa María de Garoña.

As of December 31, 2016, the company’s installed capacity at ordinary regime facilities was 21,069 MW, of which, 16,495 MW corresponded to the mainland electricity system and the remaining 4,574 MW to Non-Mainland Territories of the Balearic and Canary Islands and the cities of Ceuta and Melilla. The net installed capacity for renewables was 1,675 MW.

Energy Distribution: ENDESA Red, S.A.U.

This company holds 100% interests in ENDESA Distribución Eléctrica, S.L.U., which engages in regulated electricity distribution activities; and ENDESA Ingeniería, S.L.U. (100%).

As of December 31, 2016, the company distributed electricity in 27 Spanish provinces and across 10 Autonomous Communities (Andalusia, Aragón, the Balearic Islands, the Canary Islands, Castilla y León, Catalonia, Valencia, Extremadura, Galicia and Navarra), covering a total area of 194,687 km2 with a total population of approximately 22 million. The company had approximately 12 million distribution customers, and in 2016, its network supplied a total power output of 115,602 GWh.

Energy Supply: ENDESA Energía, S.A.U.

ENDESA Energía, S.A.U.’s main business is the supply of energy and added-value products and services (VASP) to customers wishing to exercise their right to choose their supplier and take up the service on the deregulated market.

ENDESA Energía, S.A.U. also holds 100% of the equity of ENDESA Energía XXI, S.L.U., a company acting as a reference supplier for the company and ENDESA Operaciones y Servicios Comerciales, S.L.U., which provides commercial services in relation to the supply of power. ENDESA Energía, S.A.U. supplies the deregulated markets of Germany, Belgium, France, the Netherlands and Portugal.

In 2016, the company provided 93,490 GWh to 11.0 million supply points in the electricity market. The company supplied total gas of 78,129 GWh in 2016, and as of December 31, 2016, its customer portfolio in the conventional natural gas market was made up of 1.5 million supply points.

Customers

As of December 31, 2016, the company had 5,423,040 customers in the deregulated market.

Main Markets

The company generates, distributes and sells electricity mainly in Spain and Portugal, as well as supplies electricity and gas to other European markets, in particular Germany, France, Belgium, France and the Netherlands, from its platform in Spain and Portugal. The markets in which the company carries out its activities are as follows:

Market in Spain

Generation: The company carries out its electricity generation activities in the mainland system and in Non-Mainland Territories (‘TNP’ in Spanish), which include the Balearic and Canary Islands and the self-governing cities of Ceuta and Melilla. Electricity generation is a deregulated activity.

Supply of Electricity, Gas and Value-Added Services and Products (VAPS or ‘PSVA’ in Spanish): This activity consists of supplying energy on the market and VAPS to customers. The supply of energy is a deregulated activity.

Distribution of Electricity: The purpose of the electricity distribution activity is to distribute electricity to the consumption points. Electricity distribution is a regulated activity.

Market in Portugal

Generation: Electricity generation in Portugal is carried out in a competitive environment.

Supply of Electricity and Gas: This activity is deregulated in Portugal.

History

The company was incorporated under Spanish law in 1944. It was formerly known as Empresa Nacional de Electricidad, S.A. and changed its name to Endesa, S.A. in 1997.