Investor Presentaiton

Slight improvement in market fundamentals New Industrial Plan EV endesa Electricity Demand in Spain - Mainland (% annual growth) Thermal Gap in Spain - Mainland (TWh) Demand (TWh) 245 250 255 1.8% 2.0% (€/MWh) -0.4% 2014E 2015E Spanish Pool Prices +10% 69 68 62 42 61 2013 2014E 2015E 2016E 2016E Reserve margin 53 49 44 42 Short Term 2014-2016 ■ Overcapacity Renewables slow down 2013 2014E 2015E 2016E Medium/ Long Term ■ 11 GW (coal) subject to environmental investments or early retirement ■ Need for environmental investments or new capacity Source: 2013 based on REE for RES and Thermal Gap and based on OMIE for Pool Prices. Forecasts based on internal Business Plan assumptions. 26

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