Endesa Makes Required Filing With the Spanish Securities and Exchange Commission -CNMV-.Business Editors NEW YORK--(BUSINESS WIRE)--March 4, 2002 Endesa (NYSE NYSE See: New York Stock Exchange :ELE ELE equine leukoencephalomalacia. ) has communicated to the Spanish Securities and Exchange Commission (CNMV CNMV Comisión Nacional del Mercado de Valores CNMV Colegiul National Mihai Viteazul (Romania) ) the following issues which relate to the impact of the economic situation in Argentina on ENDESA's financial statements: 1. The impact on the financial statements of ENDESA as of December 31st, 2001 brought by the lower Euro value of the investment in Argentinean affiliates as a result of the devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the peso in January 2002, considering an exchange rate of 1.7 pesos to the dollar, has been the following: a) On the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge : - Euro 84 million (USD 75 million) lower net income. - Euro 356 million (USD 317 million) lower conversion differences in the shareholders' equity. b) On the financial statements of the parent company: - Euro 119 million (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 106 million) lower net income since, should the peso not have been devalued, ENDESA, S.A. would have been able to revert the whole of the provision charged by ENDESA Internacional, which is the affiliate that holds stakes in Argentinean affiliates. 2. The additional effects of this devaluation on ENDESA's consolidated financial statements considering the exchange rate of 2.17 pesos to the dollar as of March 1st, 2002 would be Euro 47 million (USD 42 million) in net income and Euro 106 million (USD 94 million) in shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. . These effects will be registered, in their case, on the accounts for the year 2002. It is not possible to single out the effect of the evolution during 2002 of the exchange rate of the peso on the accounts of the parent company ENDESA, S.A., since, in the absence of direct holdings in Argentinean companies, the effect will be dependent on the consolidated results of its affiliate ENDESA Internacional which reflect the performance of the Latin American affiliates in all the countries in which ENDESA is present. 3. As of December 31st, 2001 the consolidated financial statements of ENDESA did not reflect any goodwill on acquisitions in Argentina since goodwill corresponds to the investment in the ENERSIS ENERSIS Energy Systems and Infrastructure Group. For additional information please contact Jacinto Pariente, North America Investor Relations Office 212 750 72 00. e-mail: ir@endesa.es |
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