Slide 1: 1Q 2019 consolidated results
1Q 2019 consolidated results May 8, 2019
Slide 2: Key highlights of the period
Key highlights of the period Strong delivery across all businesses Group net income +11% yoy Ordinary EBITDA reached 4.5 €bn (+14% yoy) Development capex increased by more than 50% yoy Stable opex despite growth and perimeter Reconsolidation of 650 MW renewable capacity in US Swap contract in Enel A
Slide 3: Industrial growth: capex
Industrial growth: capex Development capex increasing by more than 50% yoy 1Q 2019 Capex by business and by nature 1Q 2019 Development capex by business Capex addressed 3% 3%5% by year 1% 20% 4% 30% 2019E 92% 45% 1.9 €bn 1.9 €bn 1.2 €bn 2020E 68% (+36% yoy) 61% (+36% yoy) (+51% yoy) 18% 2021E 32% 43
Slide 4: Industrial growth: ordinary EBITDA
Industrial growth: ordinary EBITDA +14% in EBITDA supports FY targets EBITDA evolution1 (€ bn) Asset Development supported by renewables and I&N +14% Customers contribution remains stable 0.4 4.5 0.2 - 0.2 3.9 Electricity prices and margins offset lower production 1.0 1.0 Regulatory improvements mai
Slide 5: Operational efficiency (€mn)
Operational efficiency (€mn) Efficiencies driven mainly by thermal generation, networks and retail Opex evolution1 +2% 102 41 (39) (61) 2,112 2,072 (3) 1Q 2018 CPI & FX Develop. & Perimeter & Efficiency IFRS 16 1Q 2019 Customers Other 2 1. In nominal terms, rounded figures. 4 2. Including one-offs i
Slide 6: Portfolio management and simplification
Portfolio management and simplification Non-organic capital allocation to create value and support growth Purchase of 650 MW of renewable capacity in US Enel reaches 56.42% of Enel Americas’ share capital 650 MW capacity +4.6% 56.42% 900 $mn enterprise value Américas ~ 100 €mn at EBITDA level 5
Slide 7: Financial results
1Q 2019 consolidated results Financial results
Slide 8: Financial highlights (€mn)
Financial highlights (€mn) 1Q 2019 1Q 2018 ∆ YoY Reported EBITDA 4,548 4,037 +13% Ordinary EBITDA1 4,454 3,909 +14% Reported group net income 1,256 1,169 +7% Net ordinary income1 1,159 1,041 +11% FFO 2,484 1,898 +31% Net debt 45,093 41,0892 +10% 1. Excludes extraordinary items in 1Q 2018 (Rete Gas E
Slide 9: Ordinary EBITDA by business line
Ordinary EBITDA by business line Solid operating performance across businesses ∆ YoY New installed capacity, JV unwinding, higher +21% prices, lower volumes 0.9 1.8 4.51 €bn Tariffs adjustments & perimeter changes +7% 0.5 (+14% yoy) Free market unitary margins and efficiencies - offset regulated mar
Slide 10: Global Renewable Energies
Global Renewable Energies Asset development and portfolio management as key operating drivers EBITDA evolution1 (€mn) EBITDA 1Q 2019 by geography +21% 3%1% 20% 1,40 0.00 22% 1,20 0.00 North America JV unwinding 1,248 +800 MW of capacity 1,00 0.00 1.2 €bn 1,030 8% 800 .00 Higher prices (+8% yoy) 600
Slide 11: Global Infrastructure and Networks
Global Infrastructure and Networks EBITDA evolution supported by smart meters deployment, tariffs adjustments and perimeter EBITDA evolution1 (€mn) EBITDA 1Q 2019 by geography +7% 1% 1,90 0.00 24% 8.9mn 2nd gen. smart meters in Italy, +20% vs. PY 1.8 €bn 1,80 0.00 1,827 49% 1,70 0.00 1,721 26% Const
Slide 12: Retail
Retail Growth in power unitary margin and efficiencies offset lower volumes EBITDA evolution1 (€mn) EBITDA 1Q 2019 by geography 1,10 0.00 1,00 0.00 7% - Higher power margins in Italy and Iberia 15% 900 .00 851 850 0.9 €bn 800 .00 Efficencies for around 20 €mn 700 .00 600 .00 Reduction of business in
Slide 13: Global Thermal Generation and Trading
Global Thermal Generation and Trading Higher output & prices support the recurring performance EBITDA evolution1 (€mn) EBITDA 1Q 2019 by geography 700 .00 +79% Improved results on nuclear generation on 14% 8% higher output and better prices 600 .00 500 .00 0.5 €bn 31% 511 Fortaleza fully operational
Slide 14: Profit & loss (€mn)
Profit & loss (€mn) 1Q 2019 1Q 2018 ∆ yoy Ordinary EBITDA 4,454 3,909 +14% Higher D&A mainly driven by the new accounting D&A (1,567) (1,499) +5% principle IFRS 16 EBIT 2,887 2,410 +20% Financial expenses1 (647) (568) Higher fin. exp. mainly related to Enel Dx Sao Paulo +14% Results from equity inve
Slide 15: Cash flow (€bn)
Cash flow (€bn) Evolution of FCF supported by EBITDA dynamics 5.0 4.5 4.0 4.5 3.5 (0.3) 3.0 (1.1) 2.5 (0.2) (0.4) 2.5 2.0 1.5 (1.9) 1.0 0.5 ( ) 0.6 - 3 Ordinary ∆ Provisions 1 ∆Working Income Financial FFO Capex FCF EBITDA capital taxes expenses 2 & other PY 3.9 (0.4) (1.2) 0.0 (0.4) 1.9 (1.4)4 0.5
Slide 16: Debt (€bn)
Debt (€bn) Increase due to IFRS 16, FX and Active Portfolio Management Gross debt Net debt evolution +10% 50 48 61.6 46 0.8 0.7 60 56.0 44 42.5 1.8 45.1 8.5 6.7 42 IFRS 16 1.4 50 8.0 ( 0.6 ) 8.2 40 40 37,302 43,122 43,122 38 30 37,410 41.1 36 20 41.1 45.1 34 10 32 30 - FY 2018 1Q 2019 Jan 1, 2019 FC
Slide 17: Closing remarks
Closing remarks Delivery on strategic pillars well on track Free Cash Flow generation to remain robust SDG Sustainab le Dev. Goals Strong operating performance in the quarter supports FY targets 16
Slide 18: Annexes
1Q 2019 consolidated results Annexes
Slide 19: Macroscenario
1Q 2019 consolidated results Macroscenario GDP (%) CPI (%) FX against €1 Spot Price (€/MWh) Electricity Dem and (TWh) 2 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Italy (0.40) 1.40 1.00 0.80 - - 59.40 54.30 80.40 81.10 Iberia 2.20 2.90 1.30 1.20 - - 54.90 48.30 7
Slide 20: Group total net installed capacity
1Q 2019 consolidated results Group total net installed capacity1: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 12,419 772 763 30 - 2,739 6,340 4,535 27,598 Iberia 4,763 1,750 - 14 3,318 2,377 5,052 5,480 22,754 South America 10,031
Slide 21: Group total net production
1Q 2019 consolidated results Group total net production1: breakdown by technology and geography Solar & GWh Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 3,037 442 1,405 14 - 92 3,812 2,166 10,967 Iberia 1,483 1,108 - 6 7,084 1,449 4,059 1,843 17,032 South America 8,879 1,311 54 7
Slide 22: Group total additional capacity
1Q 2019 consolidated results Group total additional capacity1: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 8 - 1 - - - - - 9 Iberia 2 - - - - - - 35 37 South America - - - - - - - - - Argentina - - - - - - - - - Brazil - - - - - -
Slide 23: Renewable projects in execution
1Q 2019 consolidated results Renewable projects in execution: breakdown by technology and geography1,2 MW Wind Hydro Geothermal Solar Biomass Total Italy 8 27 9 - - 44 Iberia 654 7 - 339 - 1,000 South America 1,305 153 28 993 - 2,480 Rest of Europe 244 - - - - 244 North & Central America 1,244 - - 7
Slide 24: Global Renewable Energies gross pipeline
1Q 2019 consolidated results Global Renewable Energies gross pipeline1 Pipeline by technology Pipeline by geography Pipeline by COD 1% 1% 4% 1% 17% 8% 17% 2% 25.5 GW 47% 25.5 GW 48% 25.5 GW 51% 24% 44% 34% Wind Hydro Italy Rest of Europe 2019 2020 Solar Geo Iberia North & Central America 2021 >2021
Slide 25: Dx KPIs
1Q 2019 consolidated results Dx KPIs Electricity distributed (TWh) End users (m n) Sm art m eters (m n) 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Italy 57.3 57.2 31.4 31.4 31.3 31.3 Iberia 31.4 31.7 12.2 12.1 11.4 11.1 South Am erica 34.6 23.2 26.4 19.1 0.3 0.2 A rgentina 4.2 4.6 2.5 2.5 - - B
Slide 26: Retail KPIs
1Q 2019 consolidated results Retail KPIs Power Gas Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc) 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Italy 24.7 25.9 26.1 27.2 4.2 4.1 2.2 2.2 Iberia 10.7 10.8 22.2 23.5 1.6 1.6 1.8 1.9 South America 25.8 18.3 26.8 18.8 0.0 - 0
Slide 27: Italian power market
1Q 2019 consolidated results Italian power market Customers (mn) Energy sold (TWh) Enel Enel Enel Enel market share1 13,0 market share2 28,9 market share1 17,2 market share2 28,2 2.1 40% 4.5 52% 13.1 10,9 16.3 15,9 2.4 11,1 4,1 24,4 3.2 13,5 11,9 7,8 Regulated 84% Free 49% Total Regulated Free Total
Slide 28: Spanish power market
1Q 2019 consolidated results Spanish power market Customers (mn) Energy sold (TWh) Enel Enel 18.5 market share1 29.8 59.1 market share1 68.0 0.9 32% 1.2 17.6 42.8 32% 43.3 30% 11.3 28.6 0.3 16.3 31% 11.0 8.9 24.6 0.5 8.3 Regulated 44% Free 30% Total Regulated 43% Free 31% Total Business Residential
Slide 29: Baseload power price & production sold forward
1Q 2019 consolidated results Baseload power price & production sold forward Baseload price 2019 2020 Italy (€/MWh) 56.9 56.2 Iberia (€/MWh) 56.5 55.0 Production sold forw ard 2019 2020 2021 price % price % price % 1 Italy (€/MWh) 53.1 90% 57.8 30% - 0% 1 Iberia (€/MWh) 72.8 95% 78.1 45% - 0% Brazil
Slide 30: Capex (€mn)
1Q 2019 consolidated results Capex1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Italy 23 10 410 310
Slide 31: Asset development Capex (€mn)
1Q 2019 consolidated results Asset developement Capex1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018
Slide 32: Asset management Capex (€mn)
1Q 2019 consolidated results Asset management Capex1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 It
Slide 33: Customers Capex (€mn)
1Q 2019 consolidated results Customers Capex1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Italy - -
Slide 34: Revenues (€mn)
1Q 2019 consolidated results Revenues1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Italy 5,929 5,07
Slide 35: Reported EBITDA (€mn)
1Q 2019 consolidated results Reported EBITDA1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Italy 134
Slide 36: Ordinary EBITDA (€mn)
1Q 2019 consolidated results Ordinary EBITDA1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Italy 40
Slide 37: Reported EBIT (€mn)
1Q 2019 consolidated results Reported EBIT1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Italy 71 (6
Slide 38: EBITDA from Reported to Adjusted: by geography
1Q 2019 consolidated results EBITDA from Reported to Adjusted: breakdown by geography (€mn) North & Africa, South Rest of 1Q 2019 Italy Iberia Central Asia & Other Total America Europe America Oceania Reported 2,016 908 1,321 106 240 16 (59) 4,548 Extraordinary items 94 - - - - - - 94 Ordinary 1,922
Slide 39: EBITDA from Reported to Adjusted: by business line
1Q 2019 consolidated results EBITDA from Reported to Adjusted: breakdown by business line (€mn) Global Global Global Thermal Services 1Q 2019 Infrastructure Renewable Retail Enel X Total Generation & Holding & Networks Energies & Trading Reported 605 1,827 1,248 850 3 14 4,548 Extraordinary items 94
Slide 40: From EBITDA to net income (€mn)
1Q 2019 consolidated results From EBITDA to net income1 (€mn) 1Q 2019 1Q 2018 1Q 2019 1Q 2018 ∆ yoy ∆ yoy reported reported ordinary ordinary 1 EBITDA 4,548 4,037 12.7% 4,454 3,909 13.9% D&A 1,567 1,499 1,567 1,499 EBIT 2,981 2,538 17.5% 2,887 2,410 19.8% Net financial charges (647) (566) (647) (568
Slide 41: D&A reported (€mn)
1Q 2019 consolidated results D&A reported (€mn) 1 1Q 2019 1Q 2018 ∆ yoy Italy 553.0 635.0 -13% Iberia 460.0 425.0 8% South Am erica 405.0 304.0 33% North and Central Am erica 80.0 62.0 29% Europe 52.0 53.0 -2% Other 17.0 20.0 -15% Total 1,567.0 1,499.0 5% 40
Slide 42: Gross debt structure
1Q 2019 consolidated results Gross debt1 structure Long term debt by currency After swap Interest rate composition Long term credit ratings Rating Outlook 46% 80% 24% Standard & Poors BBB+ Stable 56.2 €bn 56.2 €bn 62.4 €bn 9% 3% Moody’s Baa2 Stable 3% 1% 76% 3% 34% 6% Fitch A- Stable 3% 1% 7% 4% EUR
Slide 43: Debt structure by instrument (€bn)
1Q 2019 consolidated results Debt structure by instrument (€bn) EFA and North & Europe and Euro- South Africa, Asia Debt by instrument Enel Spa EFI Central Italy Iberia Central Mediterranean Total America and Oceania Others America Affaits Bonds 9.00 26.94 - - 0.04 5.62 - - - 41.60 Bank Loans 1.05 -
Slide 44: Debt maturity coverage split by typology (€bn)
1Q 2019 consolidated results Debt maturity coverage split by typology (€bn) 31.6 23.6 5.7 Available 15.1 committed credit lines1 25.9 9.1 6.8 6.3 4.6 5.8 1.0 Cash 3.7 1.1 8.5 Short Term 2.3 1.9 5.8 Bank Loans and Others 1.7 4.7 Bonds 1.1 2.3 1.8 2019 2020 2021 2022 2023 After 2023 1Q 2019 1. Of whic
Slide 45: Balance sheet (€mn)
1Q 2019 consolidated results Balance sheet (€mn) 1Q 2019 FY 2018 Δ Net financial debt 45,093 41,089 9.7% Shareholders' equity 50,115 47,852 4.7% Net capital employed 95,208 88,940 7.0% 44
Slide 46: Balance sheet structure (€bn)
1Q 2019 consolidated results Balance sheet structure (€bn) Net fixed assets 110.5 8.0 2.1 100.4 -5.5 0.2 95.2 50.1 -10.0 45.1 Assets WIP (tangible Equity NWC Provisions Assets held Net capital Equity Net Debt & intangible) Investment for sale employed Net debt / Net capital employed 47% 45
Slide 47: Headcount
1Q 2019 consolidated results Headcount 1 1Q 2019 1Q 2018 ∆ yoy Italy 27,947 28,134 -1% Iberia 9,824 9,763 1% South Am erica 20,499 20,858 -2% Rest of Europe 5,876 5,684 3% North & Central Am erica 1,880 2,232 -16% Africa, Asia & Oceania 495 241 105% Others 2,386 2,360 1% Total 68,907 69,272 -1% 46
Slide 48: Disclaimer
1Q 2019 consolidated results Disclaimer This presentation contains certain forward-looking statements that reflect the Company’s management’s current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements ar
Slide 49: Contact us
1Q 2019 consolidated results Contact us Contacts Email investor.relations@enel.com Phone +39 06 8305 7975 Monica Girardi Channels Head of Group Investor Relations Website Mobile App Investor Relations team Enel.com Enel Investors Federico Baroncelli Francisco Basauri Serena Carioti Alessia Di Ninno