Slide 1: 1Q 2018 consolidated results
1Q 2018 consolidated results May 9, 2018
Slide 2: Highlights
1Q 2018 consolidated results Highlights Ordinary EBITDA +4% driven by renewables and retail Net income increase 10% on operating dynamics and active liability management Industrial growth ~130 €mn growth EBITDA in 1Q 2018 2018 growth EBITDA almost entirely secured Operational efficiency Opex reduced
Slide 3: Main drivers of the quarter vs. 1Q 2017
1Q 2018 consolidated results Main drivers of the quarter vs. 1Q 2017 Business performance (€mn) – EBITDA impact Macro scenario (€mn) – EBITDA impact Renewables and networks growth 130 FX (147) Retail margin improvement ~130 Thermal generation volumes ~(75) Improved resource availability ~70 Price dy
Slide 4: Industrial growth: capex
1Q 2018 consolidated results Industrial growth: capex Total capex1 (€mn) Growth capex by business line (€mn) Capex addressed by business 200 0 -5% 120 0 -10% 180 0 160 0 1,453 1,379 100 0 858 140 0 5 26 769 2018E 100% 120 0 800 -58% 11 24 100 0 858 -10% 769 600 35% 2019E 70% 800 681 -25% 509 10.2 €b
Slide 5: Operational efficiency
1Q 2018 consolidated results Operational efficiency (€mn)1 Cash cost Opex evolution1 -% 2,2 50.0 -2.6% (82) 2,2 00.0 45 39 4,00 0 2,1 50.0 (72) 3,50 0 13 2,127 3,00 0 2,476 2,465 2,1 00.0 40 2,50 0 349 393 2,072 2,0 50.0 2,00 0 1,50 0 2,127 2,072 2,0 00.0 1,00 0 1,9 50.0 500 - 1,9 00.0 1Q 2017 1Q 20
Slide 6: Group simplification & active portfolio management
1Q 2018 consolidated results Group simplification & active portfolio management Previous structure Final structure Merger of Enel Chile with EGP Chile Cash and stock PTO by Enel Chile on EGC 100.0% 60.6% 61.9% Total PTO acceptance: c.a. 84% Latin America 1.7 US$ bn cash out for the whole transaction
Slide 7: Sustainable long-term value creation
1Q 2018 consolidated results Sustainable long-term value creation Climate change and TCFD1 guidelines Management long-term remuneration Risk/opportunity deriving from non financial information 2015 Paris agreement sets a «well below 2°C» related to the climate change target by the end of century TCF
Slide 8: Enel X
1Q 2018 consolidated results Enel X Main financials (€mn) Positioning (€mn) Key highlights Gross Revenues margin Italy Completed integration of acquired entities e-Industry 116.5 29 Europe & Revenues: ~90 North Africa Revenues: ~4 e-City 49.5 25 North & Iberia Cross fertilization of existing busines
Slide 9: Financial results
1Q 2018 consolidated results Financial results
Slide 10: Financial highlights (€mn)
1Q 2018 consolidated results Financial highlights (€mn) 1Q 2018 1Q 2017 ∆ yoy Net of FX Revenues 18,946 19,366 -2% Reported EBITDA 4,037 3,914 +3% Ordinary EBITDA1 3,909 3,763 +4% +7.8% Reported EBIT 2,538 2,525 +1% Ordinary EBIT 2,410 2,374 +2% Reported Group net income 1,169 983 +19% Group net ord
Slide 11: Ordinary EBITDA evolution (€mn)
1Q 2018 consolidated results Ordinary EBITDA evolution (€mn) +4% +2% 72 22 (147) 130 (4) 400 0.0 73 3,836 3,909 0 3,909 350 0.0 3,763 300 0.0 +7% Net of FX and perimeter 250 0.0 200 0.0 1Q 2017 One-offs1 1Q 2017 Growth Efficiency Scenario & Forex Perimeter 1Q 2018 One-offs 1Q 2018 ordinary adjusted
Slide 12: Adjusted EBITDA by business (€mn)
1Q 2018 consolidated results Adjusted EBITDA by business (€mn) +2% 47 (147) 137 4 400 0 (4) Retail Retail (8) (104) 148 835 €mn 710 €mn 380 0 3,909 3,836 Renewables Renewables 360 0 1,030 €mn 932 €mn 340 0 Generation Generation 286 €mn 441 €mn 320 0 Networks Networks 1,721 €mn 1,802 €mn 300 0 1Q 201
Slide 13: Global Renewable Energies: ordinary EBITDA analysis
1Q 2018 consolidated results Global Renewable Energies: ordinary EBITDA analysis (€mn) +10.5% 115 0.0 110 0.0 35 4 (54) 17 105 0.0 96 100 0.0 1,030 950 .0 900 .0 932 850 .0 +16% (Net of forex) 800 .0 750 .0 700 .0 1Q 2017 Growth Efficiency Scenario Perimeter Forex 1Q 2018 ordinary & prices ordinary
Slide 14: Adjusted EBITDA by geography (€mn)
1Q 2018 consolidated results Adjusted EBITDA by geography (€mn) 500 0.0 +2% Italy Italy 1,815 €mn 1,947 €mn 450 0.0 Iberia Iberia 47 (147) 859 €mn 674 €mn (7) 51 1 (4) 400 0.0 (132) 185 79 Latam Latam 1,012 €mn 1,029 €mn 3,836 3,909 350 0.0 Europe & Europe & North Africa North Africa 126 €mn 144 €mn
Slide 15: Italy: ordinary EBITDA analysis by business
1Q 2018 consolidated results Italy: ordinary EBITDA analysis by business (€mn) -7% 220 0.0 Retail 200 0.0 (35) (163) 5 Retail 641 €mn 1,947 32 2 668 €mn 180 0.0 27 Renewables 1,815 Renewables 269 €mn 160 0.0 301 €mn Generation Generation 155 €mn 140 0.0 -8 €mn Networks 120 0.0 Networks 863 €mn 828 €
Slide 16: Italian retail market
1Q 2018 consolidated results Italian retail market Power unitary margin (€/MWh) -9% 25.0 0 20.0 0 Ordinary EBITDA (€mn) Free market energy sold (TWh) 15.0 0 22 20 10.0 0 +5% 25.0 0 +14% 5.00 900 .00 - 668 17.2 800 .00 641 20.0 0 1Q 2017 1Q 2018 15.1 700 .00 +10% 3.9 Cost-to-serve (€/customer) 600
Slide 17: From ordinary EBITDA to net ordinary income
1Q 2018 consolidated results From ordinary EBITDA to net ordinary income (€mn) 1,499 3,909 531 479 2,410 359 1,879 1,041 Ordinary D&A EBIT Financial EBT Income Minorities Group EBITDA expenses taxes net ordinary & other 1 income 1Q 2017 (€bn) 3.7 (1.4) 2.4 (0.6) 1.7 (0.5) (0.3) 0.9 Change YoY +4% +8
Slide 18: Cash flow (€mn)
1Q 2018 consolidated results Cash flow (€mn) (370) 4,00 0 (1,202) 3,909 (445) 3,00 0 6 2,00 0 (1,379) 1,898 1,00 0 136 (1,390) - 655 -1,000 10 (725) -2,000 Provisions1 Working 3 Ordinary Income Financial FFO Capex BSO Capex Free Dividends Active Net free EBITDA capital taxes expenses2 HFS cash pa
Slide 19: Debt and financial expenses (€mn)
1Q 2018 consolidated results Debt and financial expenses (€mn) Gross and net debt Net debt evolution +1.6% 735 (10) (169) ( 95 ) 37,871 1 51,332 52,164 37,410 7,020 4,984 6,902 9,309 37,410 37,871 FY 2017 1Q 2018 Dec 31, 2017 IFRS 9 Free cash flow Active portfolio Forex Q1 2018 continuing after divi
Slide 20: Closing remarks
1Q 2018 consolidated results Closing remarks Negative impact of currencies more than offset by business actions Increased EBITDA on the back of renewables and networks growth Continued delivery on operational efficiency FFO generation driven by growth and liability management Delivery of 2018 financ
Slide 21: Annexes
1Q 2018 consolidated results Annexes
Slide 22: Industrial growth: operational targets by business
1Q 2018 consolidated results Industrial growth: operational targets by business Total capacity (GW)1 Net production (TWh)2 46% emission free 50% emission free +4% 120 22% 24% Hydro 100 84.9 88.4 11% 10% Renewables 2.2 2.6 2017 13% 2018 80 Renewable 16% Oil & Gas 36.0 39.3 64 TWh 65 TWh 60 Managed 10
Slide 23: Market context in the period
1Q 2018 consolidated results Market context in the period (change yoy) Electricity demand Average spot power prices (€/MWh) Currencies vs. euro1,2 -4.5% -3.5% -2.5% -1.5% -0.5% 0.5 % 1.5 % 2.5 % 3.5 % 4.5 % Spot price3 -80.00% -70.00% -60.00% -50.00% -40.00% -30.00% -20.00% -10.00% 0.0 0% 10. 00% 57
Slide 24: Forward Sales Italy and Spain
1Q 2018 consolidated results Forward Sales Italy and Spain Italy 2018 Italy 2019 55 TWh 61 TWh Achieved Achieved 5% 20% 5% 10% Price1 45 €/MWh 35% Price1 49 €/MWh 40% vs. Plan vs. Plan 90% 55% 40% Spread2 +2 €/MWh Spread2 ~ 0 €/MWh 20% Expected Hedged Expected Hedged production production prod
Slide 25: Forward sales South America
Q1 2018 consolidated results Forward sales South America Chile Colombia 100% 95% 90% 100% 90% 80% 2018 2019 2020 2018 2019 2020 79 81 87 60 63 68 Peru Brazil 100% 100% 100% 100% 100% 100% 2018 2019 2020 2018 2019 2020 51 53 54 63 63 64 Hedged Production Unhedged Production - Average Price (USD/MWh)
Slide 26: From EBITDA to net income (€mn)
1Q 2018 consolidated results From EBITDA to net income (€mn) 1 2018 reported 2017 reported ∆ yoy 2018 ordinary 2017 ordinary ∆ yoy EBITDA 4,037 3,914 3.1% 3,909 3,763 3.9% D&A 1,499 1,389 1,499 1,389 EBIT 2,538 2,525 0.5% 2,410 2,374 1.5% Net financial charges (566) (664) (568) (664) Net income from
Slide 27: Reported EBITDA matrix (€mn)
1Q 2018 consolidated results Reported EBITDA matrix (€mn) Global Generation Global Infrastructures Services Reported EBITDA & Trading & Netw orNs Renew able Energies Retail e-Solutions & Other Total Total 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Italy (8) 155 956 863 301
Slide 28: Ordinary EBITDA matrix (€mn)
1Q 2018 consolidated results Ordinary1 EBITDA matrix (€mn) Global Generation Global Infrastructures Renew able Services Ordinary EBITDA & Trading & Netw orNs Energies Retail e-Solutions & Other Total Total 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Italy (8) 155 828 863 30
Slide 29: EBITDA from Reported to Adjusted: breakdown by geography
1Q 2018 consolidated results EBITDA from Reported to Adjusted: breakdown by geography (€mn) Europe North & South Sub-Saharan 1Q 2018 Italy Iberia & North Central Other Total America Africa & Asia Africa America Reported 1,943 859 1,012 126 121 13 (37) 4,037 Extraordinary items (128) - - - - - - (128
Slide 30: EBITDA from Reported to Adjusted: breakdown by business line
1Q 2018 consolidated results EBITDA from Reported to Adjusted: breakdown by business line (€mn) Global Thermal Global Global Services 1Q 2018 Generation Infrastructure Renewable Retail Enel X Total & Holding & Trading & Networks Energies Reported 286 1,849 1,030 835 11 26 4,037 Extraordinary items (
Slide 31: Operational efficiency: opex (€mn)
1Q 2018 consolidated results Operational efficiency: opex (€mn) -5% -3% 2,187 (60) 2,127 2,072 2,072 2,10 0 2,10 0 0 1,118 1,058 1,60 0 1,60 0 898 898 Personnel -15% 1,10 0 1,10 0 600 1,224 1,224 -4% 600 1,174 1,174 External costs 100 100 (4 00) (4 00) 1 1Q 2017 One-offs 1Q 2017 1Q 2018 One-offs 1Q
Slide 32: Forward sales South America
1Q 2018 consolidated results Forward sales South America Chile Colombia 100% 95% 90% 100% 90% 80% 2018 2019 2020 2018 2019 2020 79 81 87 60 63 68 Peru Brazil 100% 100% 100% 100% 100% 100% 2018 2019 2020 2018 2019 2020 51 53 54 63 63 64 Hedged Production Unhedged Production - Average Price (USD/MWh)
Slide 33: Gross debt structure
1Q 2018 consolidated results Gross debt1 structure Long term debt by currency After swap Interest rate composition Long term credit ratings Rating Outlook 50% 28% Standard & Poors BBB+ Stable 81% 49.5 €bn 49.5 €bn 52.9 €bn 2% Moody’s Baa2 Stable 10% 4% 2% 72% 28% 4% 5% Fitch BBB+ Stable 3% 6% 2% 3%
Slide 34: Debt structure by instrument (€bn)
1Q 2018 consolidated results Debt structure by instrument (€bn) Sub-Saharan Central South North & Central Europe & North Debt by instrument Enel Spa EFI Italy Iberia Africa, Asia & Total Others America America Africa Australia Bonds 9.20 22.65 - - 0.04 3.66 - 0.14 - 35.69 Bank Loans 1.03 - - 4.33 1.
Slide 35: Debt maturity coverage split by typology (€bn)
1Q 2018 consolidated results Debt maturity coverage split by typology (€bn) 27.2 4.5 19.1 Available committed credit lines1 14.1 22.7 7.3 5.3 4.7 Short Term 3.5 4.4 Cash 2.7 3.3 0.8 Bank Loans and Others 1.4 1.9 5.0 1.7 3.9 Bonds 2.4 2.6 2.5 1.6 1Q 2018 2018 2019 2020 2021 2022 After 2022 1. Of whic
Slide 36: Balance sheet (€mn)
1Q 2018 consolidated results Balance sheet (€mn) 1Q 2018 FY 2017 ∆ Net financial debt 37,871 37,410 +1.2% Shareholder’s equity 48,832 52,161 -6.3% Net capital employed 86,703 89,571 -3.8% 35
Slide 37: Balance sheet structure (€mn)
1Q 2018 consolidated results Balance sheet structure (€mn) Net fixed assets 98,987 120 ,000 1,622 (4,065) 100 ,000 6,344 (8,560) 341 91,021 80,0 00 86,703 60,0 00 48,832 40,0 00 37,871 20,0 00 - Assets WIP Equity NWC Provisions Net Assets Net capital Equity Net debt investments HFS employed Net debt
Slide 38: Italy reported figures (€mn)
1Q 2018 consolidated results Italy reported figures (€mn) Revenues EBITDA EBIT 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy Thermal Generation and Trading 5,071 5,275 -4% (8) 155 -105% (64) 97 -166% Infrastructure & Networks 1,987 1,863 7% 956 863 11% 690 601 15% Renewables 493 471 5%
Slide 39: Iberia reported figures (€mn)
1Q 2018 consolidated results Iberia reported figures (€mn) Revenues EBITDA EBIT 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy Thermal Generation and Trading 1,491 1,297 15% 119 89 34% (29) (59) -51% Infrastructure & Networks 655 624 5% 456 446 2% 275 276 0% Renewables 172 153 12% 76 51
Slide 40: South America reported figures (€mn)
1Q 2018 consolidated results South America reported figures (€mn) Revenues EBITDA EBIT 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy Thermal Generation and Trading 662 802 -17% 119 278 -57% 66 216 -69% Infrastructure & Networks 2,171 2,228 -3% 417 374 11% 247 194 27% Renewables 673 681
Slide 41: Argentina reported figures (€mn)
1Q 2018 consolidated results Argentina reported figures (€mn) Revenues EBITDA EBIT 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy Thermal Generation and Trading 53 38 39% 33 15 n.m. 23 2 n.m. Infrastructure & Networks 364 316 15% 74 43 72% 63 32 97% Renewables 15 12 25% 11 8 38% 11 7 57
Slide 42: Brazil reported figures (€mn)
1Q 2018 consolidated results Brazil reported figures (€mn) Revenues EBITDA EBIT 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy Thermal Generation and Trading 134 61 120% 24 33 -27% 21 31 -32% Infrastructure & Networks 893 887 1% 151 100 51% 47 (12) n.m. Renewables 96 127 -24% 97 64 52%
Slide 43: Chile reported figures (€mn)
1Q 2018 consolidated results Chile reported figures (€mn) Revenues EBITDA EBIT 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy Thermal Generation and Trading 389 555 -30% 22 184 -88% (5) 152 -103% Infrastructure & Networks 400 458 -13% 60 59 2% 46 45 2% Renewables 255 272 -6% 206 205 0%
Slide 44: Colombia reported figures (€mn)
1Q 2018 consolidated results Colombia reported figures (€mn) Revenues EBITDA EBIT 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy Thermal Generation and Trading 20 29 -31% 7 9 -22% 4 4 0% Infrastructure & Networks 322 354 -9% 87 119 -27% 61 93 -34% Renewables 230 226 2% 135 143 -6% 121 1
Slide 45: Peru reported figures (€mn)
1Q 2018 consolidated results Peru reported figures (€mn) Revenues EBITDA EBIT 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy Thermal Generation and Trading 66 119 -45% 33 37 -11% 23 27 -15% Infrastructure & Networks 192 213 -10% 45 53 -15% 30 36 -17% Renewables 74 42 76% 32 32 0% 26 25
Slide 46: Europe & North Africa reported figures (€mn)
1Q 2018 consolidated results Europe & North Africa reported figures (€mn) Revenues EBITDA EBIT 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy Romania 298 304 -2% 45 43 5% 11 8 38% Russia 266 314 -15% 67 90 -26% 52 75 -31% Other 38 24 58% 14 11 27% 10 8 25% Total 602 642 -6% 126 144 -13%
Slide 47: Other countries reported figures (€mn)
1Q 2018 consolidated results Other countries reported figures (€mn) Revenues EBITDA EBIT 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy 1Q 2018 1Q 2017 yoy North & Central America 234 177 32% 121 113 7% 59 62 -5% North America 132 85 55% 43 47 -9% 2 21 -90% Mexico 41 38 8% 30 27 11% 19 13 46% Panama 42 38
Slide 48: Capex by country (€mn)
1Q 2018 consolidated results Capex by country1 (€mn) -5% 1,379 1,453 S&H 8 - n.m. 19 2 380 North & Central America 398 +5% Other South America Subsaharian Africa & Asia -43% North & Central America 321 566 South America Iberia +25% Iberia 181 Europe & North Africa Europe & North Africa 50 144 -+20%
Slide 49: Capex matrix (€mn)
1Q 2018 consolidated results Capex matrix1 (€mn) Global Generation Global Infrastructures Renew able Services Retail Enel X Total Total & Trading & Netw orNs Energies & Other 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Italy 10 7 310 257 37 32 45 16 3 - 4 3 408 314 Iberia 2
Slide 50: Group total net installed capacity by technology and geography
1Q 2018 consolidated results Group total net installed capacity1: breakdown by technology and geography Solar & Oil&Gas MW Hydro Wind Geothermal Nuke Coal CCGT TOTAL Other ST/OCGT Italy 12,401 772 761 80 - 6,340 4,535 2,739 27,628 Iberia 4,758 1,618 - 14 3,318 5,168 5,445 2,377 22,698 South America
Slide 51: Group total net production by technology and geography
1Q 2018 consolidated results Group total net production1: breakdown by technology and geography Solar & Oil&Gas GWh Hydro Wind Geothermal Nuke Coal CCGT TOTAL Other ST/OCGT Italy 3,783 464 1,421 35 - 5,583 1,705 117 13,108 Iberia 2,047 1,170 - 4 6,650 5,273 1,724 1,645 18,512 South America 8,465 1,0
Slide 52: Group total additional capacity by technology and geography
1Q 2018 consolidated results Group total additional capacity1: breakdown by technology and geography Solar & Oil&Gas MW Hydro Wind Geothermal Nuke Coal CCGT TOTAL Other ST/OCGT Italy 0 - - - - - - - 0 Iberia 6 - - - - - - - 6 South America 10 304 - 103 - - - - 417 Argentina - - - - - - - - - Brazil
Slide 53: Renewable projects in execution
1Q 2018 consolidated results Renewable projects in execution: breakdown by technology and geography1,2 MW Wind Hydro Geothermal Solar Biomass Total Italy 8 30 7 - 54 98 Iberia - 5 - - - 5 South America - 21 - 86 - 107 Europe & North Africa 154 - - - - 154 North & Central America 1,094 - - 360 - 1,45
Slide 54: Renewable projects under construction
1Q 2018 consolidated results Renewable projects under construction : breakdown by technology and geography1,2 MW Wind Hydro Geothermal Solar Biomass Total Italy 8 13 - - 54 75 Iberia - - - - - - South America 21 - 86 - 107 Europe & North Africa 154 - - - - 154 North & Central America 909 - - 360 - 1
Slide 55: Renewable projects ready to build
1Q 2018 consolidated results Renewable projects ready to build : breakdown by technology and geography1,2 MW Wind Hydro Geothermal Solar Biomass Total Italy - 17 7 - - 23 Iberia - 5 - - - 5 South America - - - - - - Europe & North Africa - - - - - North & Central America 185 185 Sub-Saharan Africa &
Slide 56: Global Renewable Energies gross pipeline
1Q 2018 consolidated results Global Renewable Energies gross pipeline1 Pipeline by technology Pipeline by geography Pipeline by COD 1% 1% 12% 4% 7% 25% 1% 49% 21.9 GW 21.9 GW 42% 40% 21.9 GW 31% 28% 49% 10% Italy Wind Solar Hydro Iberia 2018 2019 South America Geo Other Europe & North Africa 2020 >2
Slide 57: Disclaimer
1Q 2018 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 58: Contact us
1Q 2018 consolidated results Contact us Monica Girardi Head of Group Investor Relations Investor Relations team Serena Carioti Alessia Di Ninno Federica Dori Donatella Izzo Fabrizio Ragnacci Email Federica Todaro investor.relations@enel.com Emanuele Toppi Phone +39 06 8305 7975 Follow us Web site ww