Enel Spa · MIL:ENEL
Enel Spa — H1 2024 Earnings Presentation
47 slides from Enel Spa's earnings presentation, Jul 25, 2024
Slide 1: First Half 2024 Consolidated results
First Half 2024 Consolidated results July 25th, 2024
Slide 2: First Half 2024 Consolidated results - CEO
First Half 2024 Consolidated results Flavio Cattaneo CEO
Slide 3: Opening remarks
Opening remarks Financial Solid operational sustainability: on M&A: 5 €bn cashed and financial Full Year 2024: track to provide in in Q2 2024 results, deleverage on track to support to a and efficiencies achieve the top shareholder Disposal Plan program well on of the range remuneration completed tr
Slide 4: Strong economics and financial performance in H1
Strong economics and financial performance in H1 Economic Earnings Cash performance evolution generation Ordinary EBITDA Ordinary Net Income FFO 11.7 €bn 4.0 €bn 5.5 €bn Ordinary EBITDA up by High double digit growth Continued focus on 9% yoy on a sound vs previous year cash generation performance a
Slide 5: Continued advocacy activity to drive value creation
Continued advocacy activity to drive value creation Positive evolution on renewables development and remuneration creates potential to exploit 20 GW mature pipeline in Italy (FER 2, FER X and suitable areas Decrees approval). More than 1 million customers added to the liberalized market starting fro
Slide 6: Capex deployment to sustain visible long-term growth
Capex deployment to sustain a visible long-term growth and enhance value creation Gross capex By business line By geography Strategic pillars H1 ‘23 H1 ‘24 ROW RAB/customer1 (€/cl) ~645 ~650 52% RES production on total2 62% 72% H1 2024 H1 2024 5.5 €bn 5.5 €bn CO2 Emission free production2 73% 84% 66
Slide 7: Accelerated deployment of the new partnership business model
Accelerated deployment of the new “partnership” business model Sale of 49% in Enel Sale of 49.99% of solar Libra Flexsys assets in Spain Strategic pillars BESS OCGT 1.9 €bn cash in from partnerships to optimize capital KPI Valuation Valuation Enterprise Value1 (€bn) 2.5 Enterprise Value1 (€bn) 1.7 a
Slide 8: Delivering on a cost disciplined organization
Delivering on a cost disciplined organization Addressable cost baseline1 Evolution vs 2022 (€bn) Reduction by nature Strategic pillars Around 50% 27% of 1 €bn efficiency 0.5 €bn target (0.5) already 6.9 73% achieved 6.4 5.9 2022 Efficiency @June 2024 CMD Target Business Lines @2026 Holding costs 7 1
Slide 9: New management's actions translated into strong financial and environmental performance
New management’s actions translated into a strong financial and environmental performance Scope 1 GHG emissions Ordinary EBITDA (€bn) FFO (€bn) intensity (gCO2eq/kWh) Strategic pillars 5.5 8x +41% -41% 0.7 H1 2022 1 H1 2024 8.3 11.7 Stewardship gains Net Debt/EBITDA (ltm) 173 0.2 7.8 Integrated 3.3x
Slide 10: First Half 2024 Consolidated results - CFO
First Half 2024 Consolidated results Stefano de Angelis CFO
Slide 11: Strong operating delivery in H1 drives increase in EBITDA
Strong operating delivery in H1 drives high single digit increase in EBITDA Ordinary EBITDA1 (€bn) EBITDA by business3 EBITDA by geography3 +9% 10.7 11.7 ROW 3.3 0.6 4.0 H1 2024 H1 2024 +13% 11.7 €bn 11.7 €bn vs PY 10.2 7.8 8.5 H1 2023 H1 2024 2023 Disposals2 1. Rounded figures. It excludes extraord
Slide 12: Positive networks' performance across all geographies
Grids Positive networks’ performance across all geographies Ordinary EBITDA evolution (€bn) (6%) EBITDA up by 4% net of perimeter 4.2 0.1 effect from disposed assets 4.0 4.5 00 0.1 - 4.0 00 0.4 3.5 00 3.0 00 Confirmed supportive regulatory framework in Italy drives EBITDA increase 2.5 00 3.8 2.0 00
Slide 13: Strong renewables growth drives up integrated business EBITDA
Integrated business Strong renewables growth drives up integrated business EBITDA Ordinary EBITDA evolution (€bn) +18% Strong EBITDA growth in renewables thanks to: 9.0 00 - 9 TWh of higher resource availability vs 1.7 7.8 8.0 00 2023 7.0 00 6.6 (0.1) (0.1) - hedging with Retail B2C more than 6.0 00
Slide 14: Net Ordinary Income up by a sound 21% yoy
Net Ordinary Income up by a sound 21% yoy Profit & loss (€bn) Key Drivers H1 2024 H1 2023 ∆ yoy Financial expenses Cost of debt almost in line with previous Ordinary EBITDA 11.68 10.74 +9% year Other financial charges normalized in D&A and Provisions (3.82) (3.64) Q2, as expected Financial expenses1
Slide 15: FFO up yoy despite negative non-recurring items
FFO up yoy despite negative non-recurring items, ample visibility on H2 delivery Cash flow (€bn) (2.8) €bn ∆WC o/w: FFO adjusted for EBITDA 10.7 11.7 o (1.2) €bn non-recurring1 working capital o (1.6) €bn Payables seasonality seasonal dynamics (2.1) (3.4) fully supports Cash (1.7) Flow visibility to
Slide 16: Pro-forma Net Debt/EBITDA at 2024 target
Pro-forma Net Debt/EBITDA at 2024 target Net debt evolution1 (€bn) o 1.2 €bn DX activities in Lombardy o 0.8 €bn Solar assets in Spain ND/EBITDA 60.2 Hybrids 0.6 2.6 57.4 ~2.4x 0.2 (5.5) 3.9 (4.0) 0.7 FX impact 2.0 FFO-Capex +1.6 €bn 59.6 56.7 2 3 Dec. 31, 2023 FFO Net Capex APM Dividend paid Leasin
Slide 17: Successful completion of the re-engineered M&A Plan
Successful completion of the re-engineered M&A Plan M&A delivery: Net Debt impact Sale of Argentina generation Sale of 50% stake in Australia 2023 Exit from Romania 2.0 Sale of PV Assets in Chile Closed Sale of 50% stake in EGP Hellas 2023-24 CMD target Sale 150 MW of solar and geo capacity ~11.5 €b
Slide 18: Full Year 2024 guidance supported by H1 delivery
Full Year 2024 guidance supported by H1 delivery Full Year 2024 Ordinary EBITDA guidance (€bn) H2 expected delivery1 22.1-22.82 Full Year 2024 ~7.5 guidance ~15.0 expected to 11.4 ~4.0 (0.3) reach the 7.6 top-end of 11.7 ~8.0 the guidance 3.9 range H1 2024 Disposals H1 2024 net Grids Integrated FY 2
Slide 19: Closing remarks
First Half 2024 Closing remarks
Slide 20: Closing remarks
Closing remarks A pragmatic and return- driven approach to Management’s execution investments, Strict focus on the new restored an organic accountability and strategic pillars to deliver business performance with advocacy result into organic, clear and solid cash flow production a more profitable, e
Slide 21: H1 2024 Annexes
H1 2024 Consolidated results Annexes
Slide 22: Update on M&A plan
Update on M&A plan Net Debt impact Amount (€bn) Year Sale of Argentina generation1 0.1 2023 Sale of 50% stake in Australia1 0.1 2023 Exit from Romania1 2.1 2023 Deals Sale of PV Assets in Chile 0.5 2023 closed Sale of 50% stake in EGP Hellas 0.3 2023 Sale 150 MW of solar and geothermal capacity 0.3
Slide 23: Macroscenario
H1 2024 consolidated results Macroscenario GDP (%) CPI (%) FX against €1 Spot Price (€/MWh) 1 Electricity Demand (TWh) H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 Italy 0.87 1.38 0.92 8.65 93.56 136.21 151.53 149.90 Iberia 2.46 2.98 3.42 3.88 37.82 89.41 146.00 14
Slide 24: Group consolidated net capacity by technology and geography
H1 2024 consolidated results Group consolidated net capacity: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 12,992 874 776 333 - 2,052 4,160 4,607 25,794 Iberia 4,746 2,893 - 2,453 3,328 2,333 241 5,445 21,439 Rest of World 9,803 11
Slide 25: Group consolidated net production by technology and geography
H1 2024 consolidated results Group consolidated net production: breakdown by technology and geography Solar & GWh Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 9,884 758 2,638 109 - 34 642 3,771 17,837 Iberia 4,442 3,603 - 1,867 12,246 2,104 50 5,465 29,778 Rest of World 19,104 18
Slide 26: Group total additional capacity by technology and geography
H1 2024 consolidated results Group total additional capacity1: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 1 - - 96 - - - - 97 Iberia - 9 - 184 - - - - 193 Rest of World 1 194 - 1,001 - - - - 1,195 Latin America 1 194 - 601 - - -
Slide 27: Renewable projects in execution
H1 2024 consolidated results Renewable projects in execution: breakdown by technology and geography1 Solar & MW Wind Hydro Geothermal BESS Total Other Italy - 4 - 212 1,572 1,788 Iberia 33 10 - 661 42 746 Rest of World 530 156 - 2,529 283 3,498 Latin America 194 156 - 1,288 168 1,806 North America -
Slide 28: Renewables Pipeline
H1 2024 consolidated results Pipeline Renewables Pipeline (GW) 2024-26 Additional capacity target2 2.0 ~364 73 174 6.0 13.4 GW 111 5.4 6.0 Gross Pipeline BESS 1 Early stage Mature In execution Capacity in execution Built capacity 1. It includes BESS for around 49 GW in early stage and around 24 GW i
Slide 29: Mature pipeline
H1 2024 consolidated results Mature pipeline1 By technology By geography By COD 3% 11% 13% 3% 2% 14% 32% 16% 111 GW 24% 111 GW 111 GW 65% 34% 83% Wind Italy North America 2025 Solar Iberia Rest of Europe 2026 Hydro & Other Latin America Africa, Asia & Oceania >2026 1. It excludes BESS mature pipelin
Slide 30: Enel Grids KPIs
H1 2024 consolidated results Enel Grids KPIs1 Electricity distributed Grid customers (mn) Smart meters (mn) H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 Italy 104.7 103.1 31.9 31.8 31.8 31.7 Iberia 67.6 67.0 12.6 12.5 12.5 12.4 Rest of World 64.5 69.4 24.5 28.8 1.4 2.2 Latin America 64.5 62.1 24.
Slide 31: Enel X Global Retail: Retail KPIs
H1 2024 consolidated results Enel X Global Retail: Retail KPIs1 Power Gas Customers (mn)2 Volumes (TWh) Customers (mn) Volumes (bsmc) H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 Italy 17.1 19.6 37.2 43.7 4.1 4.6 2.1 2.5 Iberia 10.3 10.5 36.6 37.7 1.8 1.8 1.9 2.2 Rest of World 24.
Slide 32: Enel X Global Retail: Enel X
H1 2024 consolidated results Enel X Global Retail: Enel X Enel X Public Charging points (k) Street lighting (mn) Storage (MW) Demand Response (GW) H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 Italy 20.5 19.2 1.6 1.6 - - 0.6 0.9 Iberia 5.9 4.7 0.2 0.1 - - 0.1 0.2 Rest of World 1.0
Slide 33: Capex
H1 2024 consolidated results Capex1 (€mn) Global Generation Services Enel Grids Renewable Energies Enel X Global Retail 2 Total & Trading & Other H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 Italy 122 166 1,738 1,446 531 1,007 292 263 8 20 2,691 2,9
Slide 34: Asset development Capex
H1 2024 consolidated results Asset development Capex1 (€mn) Global Generation Services Enel Grids Renewable Energies Enel X Global Retail 2 Total & Trading & Other H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 Italy 102 128 812 645 475 949 78 54 4 5
Slide 35: Revenues
H1 2024 consolidated results Revenues1 (€mn) Global Generation Services Enel Grids Renewable Energies Enel X Global Retail 2 Total & Trading & Other H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 Italy 6,340 12,589 4,021 3,733 2,050 1,378 11,960 14,50
Slide 36: Reported EBITDA
H1 2024 consolidated results Reported EBITDA1 (€mn) Global Generation 2 Services Enel Grids Renewable Energies Enel X Global Retail Total & Trading & Other H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 Italy 1,083 737 1,940 1,859 1,291 146 1,648 2,11
Slide 37: Ordinary EBITDA
H1 2024 consolidated results Ordinary EBITDA1 (€mn) Global Generation 2 Services Enel Grids Renewable Energies Enel X Global Retail Total & Trading & Other H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 Italy 1,083 737 1,940 1,859 1,291 146 1,648 2,11
Slide 38: Reported EBIT
H1 2024 consolidated results Reported EBIT1 (€mn) Global Generation 2 Services Enel Grids Renewable Energies Enel X Global Retail 2 Total & Trading & Other H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 Italy 983 664 1,233 1,184 1,125 (15) 1,139 1,673
Slide 39: From EBITDA to net income
H1 2024 consolidated results From EBITDA to net income1 (€mn) H1 2024 H1 2023 H1 2024 H1 2023 ∆ yoy ∆ yoy reported reported ordinary ordinary EBITDA 12,862 9,676 32.9% 11,681 10,739 8.8% D&A (3,874) (3,551) (3,819) (3,644) EBIT 8,988 6,125 46.7% 7,862 7,095 10.8% Net financial charges (1,585) (1,621
Slide 40: D&A reported
H1 2024 consolidated results D&A reported (€mn) H1 2024 H1 2023 ∆ yoy Generation and Trading 406 384 5.7% Enel Green Power 838 764 9.7% Grids 1,509 1,454 3.8% Enel X Global Retail 1 1,022 833 22.7% Others and adjustments 99 116 -14.7% Total 3,874 3,551 9.1% 1. Enel X Global Retail includes Enel X Wa
Slide 41: Long-term debt structure
H1 2024 consolidated results Long-term debt1 structure By currency Interest rate Long term By currency After swap composition credit ratings 49% Rating Outlook 83% 17% S&P BBB Stable 72.2 €bn 2% 72.2 €bn 72.2 €bn Moody’s Baa1 Stable 7% 1% 4% 1% 83% 2% 2% 10% Fitch BBB+ Stable 1% 38% EUR USD BRL Floa
Slide 42: Debt structure by instrument
H1 2024 consolidated results Debt structure by instrument (€bn) EGP SpA Africa, Asia Rest of the Latin North Debt by instrument Enel Spa EFI and Central Italy Iberia Europe and Total World America America Others Oceania Bonds 2.33 44.30 - - 0.01 5.13 3.53 1.60 - - 51.77 Bank Loans 1.32 - 0.20 4.12 5
Slide 43: Debt maturity coverage split by typology
H1 2024 consolidated results Debt maturity coverage split by typology (€bn) Available liquidity 34.7 Bank Loans and Others 8.3 Bonds 10.4 30.2 €bn 19.8 26.4 8.8 8.7 7.4 6.7 5.3 3.3 2.1 2.1 2.8 1.2 5.3 5.5 6.6 4.1 3.9 Available committed credit lines1 2024 2025 2026 2027 2028 After 2028 Cash 1. Of wh
Slide 44: Balance sheet
H1 2024 consolidated results Balance sheet (€mn) H1 2024 FY 2023 Δ Net financial debt 57,406 60,163 -4.6% Shareholders' equity 48,521 45,109 7.6% Net capital employed 105,927 105,272 0.6% 43
Slide 45: Headcount
H1 2024 consolidated results Headcount 1 H1 2024 FY 2023 ∆ yoy Generation and Trading 5,379 5,725 -6.1% Enel Green Power 8,483 8,891 -4.6% Distribution 30,963 30,946 0.1% 1 Enel X Global Retail 8,362 8,926 -6.3% Others and adjustments 6,931 6,567 5.5% Total 60,118 61,055 -1.5% 1. Enel X Global Retai
Slide 46: Disclaimer
H1 2024 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 47: Contact us
Contact us Contacts Email investor.relations@enel.com Phone +39 06 8305 7975 Investor Relations App Monica Girardi iOS Android Head of Group Investor Relations Investor Relations team Federico Baroncelli Serena Carioti Gaia Cherubini Federica Dori Fabrizio Ragnacci Channels Danielle Ribeiro da Encar