Enel Spa · MIL:ENEL
Enel Spa — 9M 2020 Earnings Presentation
51 slides from Enel Spa's earnings presentation, Nov 5, 2020
Slide 1: 9M 2020 Consolidated results
9M 2020 Consolidated results November 5, 2020
Slide 2: Key highlights of the period
Key highlights of the period Strong renewables Group Financial performance Full year guidance growth simplification +1.7 GW year to date Merger of EGP EBITDA Net Income Latam into c.18.0 €bn +9% +4.1 GW Enel Americas over last 12 Net Income announced months 5.0-5.2 €bn 1
Slide 3: Currencies' weakness extended in Q3, electricity demand shows recovery signs
Currencies’ weakness extended in Q3, electricity demand shows recovery signs Currencies vs. euro1 (∆ yoy) Electricity demand (∆ yoy) Q3 2020 Q2 2020 9M Q3 2020 Q2 2020 9M -34% -35% -14% -7% ARS/EUR Italy -36% -3% -26% -13% BRL/EUR -23% Spain -6% -30% -3% -15% -9% CLP/EUR -15% Brazil -2% -14% 1% -14%
Slide 4: FX and COVID-19 impact on demand and bad debt
FX and COVID-19 impact on demand and bad debt (€bn) Net of Ordinary FX COVID-19 Bad debt COVID-19 & FX Net of FX and COVID-19, EBITDA would have increased by 8% EBITDA 13.1 0.65 0.53 14.3 COVID-19 impact mainly associated with declining volumes in Latam D&A 4.9 0.24 0.18 D&A impacted by bad debt pro
Slide 5: Continued capex deployment to fuel growth ambitions
Continued capex deployment to fuel growth ambitions Net of currency impact capex up by 7% yoy in real terms Capex by business and by nature Asset development capex by business 19% 25% 41% 46% 9M 2020 9M 2020 9M 2020 6.6 €bn 20% 6.6 €bn 3% 4.0 €bn 61% 2% 70% 2% 5% 6% Networks Enel X Asset development
Slide 6: Decarbonisation: Enel Green Power
Decarbonisation Enel Green Power Strong and continued delivery with 4.1 GW built over the last 12 months Renewable capacity evolution (GW) Emission free share of production1 45.8 47.3 900 MW added in Q3 Total capacity c. 1,700 MW built year to date 0.2 0.3 9M 2020 3.7 3.6 160 TWh Coal capacity below
Slide 7: Merger of EGP Latam assets in Enel Américas
Merger of EGP Latam assets in Enel Américas Transaction to be completed in Q2 2021 1 Maximize synergies while reducing 65% 100% operational and financial risks Removal of the 65% threshold to complete the transaction Américas Latin America Alignment of Enel Américas to September Mid-November End Dec
Slide 8: 9M 2020 Financial results
WY A 9M 2020 7 inanc ial results ene
Slide 9: Financial highlights (€mn)
Financial highlights (€mn) EBITDA1 Net Income1 FFO Net Debt 13,146 3,593 6,572 48,953 -1% vs PY +9% vs PY -18% vs PY +8% YTD H1 2020 vs - +6% -58% +12% H1 2019 9M 2019 13,268 3,295 7,995 45,1752 1. Ordinary figures 8 2. As of December 2019
Slide 10: Ordinary EBITDA flat yoy despite COVID-19 and strong FX devaluation
Ordinary EBITDA flat yoy despite COVID-19 and strong FX devaluation Net of FX&COVID19 2.3 +8% EBITDA net of FX and COVID-19 impact +8% versus previous year 1.7 5.8 9M 2020 Volumes impact in Latam 13.11 €bn Resiliency of European networks backed by Net of Net of FX&COVID19 FX&COVID19 supportive regul
Slide 11: Decarbonisation: Global Power Generation
Decarbonisation Global Power Generation Improved operating performance despite weaker FX EBITDA evolution (€mn)1 EBITDA by geography1 7,00 0 +10% Operating performance more than 5% 6,00 0 4,616 5,064 offset 315 €mn FX negative impact 33% 28% 5,00 0 9M 2020 1,677 Strong contribution from 4,00 0 1,324
Slide 12: GPG - Enel Green Power
Decarbonisation GPG - Enel Green Power New capacity deployed more than offset negative FX impact EBITDA evolution (€mn)1 EBITDA by geography +3% More than 250 €mn from new 5% 3,60 0.00 capacity deployed 31% 3,40 0.00 42% 9M 2020 3,387 Positive impact from hedged 3,20 0.00 3,292 3.4 €bn 3,00 0.00 pri
Slide 13: GPG - Conventional generation and trading
Decarbonisation GPG - Conventional generation and trading Output down by 27%, continued benefits from short position and efficiencies EBITDA evolution (€mn)1 EBITDA by geography +27% 1% Short position in Spain and 14% 2,00 0.00 gas portfolio management 6% 1,50 0.00 1,677 9M 2020 Efficiencies concent
Slide 14: Enabling Infrastructure: Infrastructure and Networks
Enabling Infrastructure Infrastructure and Networks Protective regulation in Europe, Latam affected by FX and volumes EBITDA evolution (€mn) EBITDA by geography -6% Resilient performance in Europe 19% 8,00 0.00 7,00 0.00 6,098 5,753 28% 9M 2020 6,00 0.00 1,658 Latam affected by persisting 5,00 0.00
Slide 15: Electrification: Retail
Electrification Retail +400k customers yoy despite lockdowns EBITDA evolution (€mn)1 Free Market – Energy sold (TWh)2 -5% -4% 50.1 47.6 Free market customers +400k versus previous year 12.0 12.8 +7% 2,405 2,297 Italy 38.1 34.8 -9% Regulated Volumes sold temporary impacted markets 462 +2% 472 9M 2019
Slide 16: Operational efficiency
Operational efficiency Opex down by 7% yoy, net of one off OPEX evolution (€mn) Efficiencies by business -7% 8,0 00.0 11% 7,0 00.0 3% - 6,0 00.0 38% 6,233 (176) (215) (73) 5,771 5,0 00.0 (356) 5,415 9M 2020 4,0 00.0 176 €mn 3,0 00.0 2,0 00.0 48% 1,0 00.0 0.0 9M 2019 Efficiency CPI & FX Develop. & Pe
Slide 17: Profit & loss (€mn)
Profit & loss (€mn) 9M 2020 9M 2019 ∆ yoy Ordinary EBITDA 13,146 13,268 -1% D&A (4,935) (5,008) -1% EBIT 8,211 8,260 -1% Financial expenses1 (1,725) (1,876) -8% Results from equity investments 45 (73) n.m. EBT 6,531 6,311 +3% Income taxes (1,901) (1,766) +8% Minorities (1,037) (1,250) -17% Group net
Slide 18: Net Ordinary Income up by 9% yoy
Net Ordinary Income up by 9% yoy Net Ordinary Income 2019-20 evolution (€bn) +9% 4.0 D&A benefitting from coal impairment on 3.8 the back of our decarbonization strategy 3.6 0.3 0.2 3.6 3.4 0.1 Financial expenses reduction thanks (0.1) 3.2 3.3 to lower cost of debt 3.0 (0.1) 2.8 2.6 Minorities decre
Slide 19: Cash flow (€bn)
Cash flow (€bn)1 700 €mn COVID-19 impact recovered vs. H1 2020 14.0 12.0 13.1 ( 1.4 ) 10.0 ( 0.4 ) 8.0 ( 2.1 ) (1.0) 6.0 ( 1.7 ) 6.6 ( 6.6 ) 4.0 2.0 0.0 - Ordinary ∆ Provisions 2 Provision ∆Working Income Financial FFO Capex FCF EBITDA reversal in capital taxes expenses 3 Spain & other PY 13.3 (1.1)
Slide 20: Debt (€bn)
Debt (€bn) Net debt evolution Gross debt 55 +1% 1.1 0.4 4.6 62.2 61.5 50 45.2 - 1.7) (49.0 49.0 60 5.6 Cash Hybrids 0.6 9.0 45 7.7 Fin. receivables 7.3 50 40 40 30 20 45.2 49.0 Net debt 35 10 - 30 Dec 31, 2019 FCF Dividends APM New leasing FX1 Sep 30, Dec 31, 2019 Sep 30, 2020 paid 2020 Cost of 4.1%
Slide 21: Closing remarks
Closing remarks Signs of 9% growth in stabilisation in A new phase of Floor DPS to Net Ordinary demand and prices Group’s underpin a 7% yoy Income shows Normalisation of simplification CAGR and c.5% business mix renewables kicked off Yield resiliency capacity addition 20
Slide 22: Annexes
9M 2020 Consolidated results Annexes
Slide 23: Macroscenario
9M 2020 consolidated results Macroscenario GDP (%) CPI (%) FX against €1 Spot Price (€/MWh) Electricity Dem and (TWh) 2 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 Italy (10.66) 0.37 (0.01) 0.72 - - 35.61 53.71 225.14 241.64 Iberia (12.44) 2.05 (0.12) 0.78 - - 31.
Slide 24: Group consolidated net capacity: breakdown by technology and geography
9M 2020 consolidated results Group consolidated net capacity: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 12,408 772 769 28 - 2,389 6,206 4,583 27,156 Iberia 4,749 2,377 - 352 3,318 2,334 2,764 5,445 21,339 Latin America 10,580 1,
Slide 25: Group consolidated net production: breakdown by technology and geography
9M 2020 consolidated results Group consolidated net production: breakdown by technology and geography Solar & GWh Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 12,527 893 4,232 16 - 224 6,110 6,669 30,671 Iberia 6,042 3,481 - 420 19,523 3,184 1,031 8,470 42,150 Latin America 27,86
Slide 26: Group total additional capacity: breakdown by technology and geography
9M 2020 consolidated results Group total additional capacity1: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 2 - 4 - - - - 48 54 Iberia 2 86 - - - - - - 88 Latin America - 320 - 298 - - - - 618 Argentina - - - - - - - - - Brazil - 3
Slide 27: Renewable projects in execution: breakdown by technology and geography
9M 2020 consolidated results Renewable projects in execution: breakdown by technology and geography1 MW Wind Hydro Geothermal Solar Biomass Total Italy 46 62 5 - - 113 Iberia 45 6 - 375 - 427 Latin America 1,800 4 28 1,388 - 3,220 Rest of Europe 291 - - 6 - 297 North America 717 - - 465 - 1,182 Afri
Slide 28: EGP mature pipeline
9M 2020 consolidated results EGP mature pipeline By technology By geography By COD 1% 10% 2% 15% 23% 6% 14% 47% 51 GW 52% 51 GW 51 GW 18% 37% 75% Wind Italy North America 2021 Solar Iberia Rest of Europe 2022 Hydro & Others Latin America Africa, Asia & Oceania >2022 27
Slide 29: Infrastructure & Networks KPIs
9M 2020 consolidated results Infrastructure & Networks KPIs Electricity distributed (TWh) 1 End users (m n) Sm art m eters (m n) 1 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 Italy 155.9 169.6 31.5 31.5 31.4 31.4 Iberia 93.2 95.5 12.3 12.2 12.3 12.1 Latin Am erica 96.8 102.7 27.6 27.1 0.4 0.4 A
Slide 30: Retail KPIs
9M 2020 consolidated results Retail KPIs Power Gas 1 2 1 Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc) 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 Italy 22.9 24.0 67.3 74.1 4.1 4.1 3.1 3.4 Iberia 10.5 10.7 60.6 67.0 1.7 1.6 3.5 4.2 Latin America 27.6 27.1 87.5 93.7 0
Slide 31: Baseload power price & production sold forward
9M 2020 consolidated results Baseload power price & production sold forward Baseload price 2020 2021 Italy (€/MWh) 60.2 59.8 Iberia (€/MWh) 53.2 53.5 Production sold forw ard 2020 2021 2022 price % price % price % Italy (€/MWh)1 56.9 100% 51.7 85% 51.7 26% Iberia (€/MWh)1 73.9 100% 71.6 96% ~ 72.0 4
Slide 32: Capex (€mn)
9M 2020 consolidated results Capex1 (€mn) Conventional Generation & Global Infrastructure Services EGP Retail Enel X Total Trading & Netw orks & Other 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 Italy 90 85 1,291 1,256 138 134 220 2
Slide 33: Asset development Capex (€mn)
9M 2020 consolidated results Asset development Capex1 (€mn) Conventional Generation & Global Infrastructure Services EGP Retail Enel X Total Trading & Netw orks & Other 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 Italy 44 16 563 590
Slide 34: Asset management Capex (€mn)
9M 2020 consolidated results Asset management Capex1 (€mn) Conventional Generation & Global Infrastructure Services EGP Retail Enel X Total Trading & Netw orks & Other 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 Italy 46 68 327 323
Slide 35: Customers Capex (€mn)
9M 2020 consolidated results Customers Capex1 (€mn) Conventional Generation & Global Infrastructure Services EGP Retail Enel X Total Trading & Netw orks & Other 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 Italy - - 401 344 - - 220 2
Slide 36: Revenues (€mn)
9M 2020 consolidated results Revenues1 (€mn) Conventional Generation & Global Infrastructure Services EGP Retail Enel X Total Trading & Netw orks & Other 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 Italy 11,066 17,027 5,515 5,736 1,
Slide 37: Reported EBITDA (€mn)
9M 2020 consolidated results Reported EBITDA1 (€mn) Conventional Generation & Global Infrastructure Services EGP Retail Enel X Total Trading & Netw orks & Other 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 Italy 292 73 2,922 2,970 1,
Slide 38: Ordinary EBITDA (€mn)
9M 2020 consolidated results Ordinary EBITDA1 (€mn) Conventional Generation & Global Infrastructure Services EGP Retail Enel X Total Trading & Netw orks & Other 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 Italy 383 140 2,951 2,920 1
Slide 39: Reported EBIT (€mn)
9M 2020 consolidated results Reported EBIT1 (€mn) Conventional Generation & Global Infrastructure Services EGP Retail Enel X Total Trading & Netw orks & Other 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 Italy 161 (2,054) 1,827 1,973
Slide 40: EBITDA from Reported to Adjusted: breakdown by geography (€mn)
9M 2020 consolidated results EBITDA from Reported to Adjusted: breakdown by geography (€mn) Europe North & South Africa, Asia & Others and 9M 2020 Italy Iberia & North Central Total America Oceania adjustments Africa America Reported 5,966 3,085 2,886 391 441 36 (100) 12,705 Extraordinary items (152
Slide 41: EBITDA from Reported to Adjusted: breakdown by business line (€mn)
9M 2020 consolidated results EBITDA from Reported to Adjusted: breakdown by business line (€mn) Global Global Global Thermal Services 9M 2020 Infrastructure Renewable Retail Enel X Total Generation & Holding & Networks Energies & Trading Reported 1,341 5,714 3,376 2,287 68 (81) 12,705 Extraordinary
Slide 42: From EBITDA to net income (€mn)
9M 2020 consolidated results From EBITDA to net income1 (€mn) 9M 2020 9M 2019 9M 2020 9M 2019 ∆ yoy ∆ yoy reported reported ordinary ordinary EBITDA 12,705 13,209 -3.8% 13,146 13,268 -0.9% D&A (5,730) (9,010) (4,935) (5,008) EBIT 6,975 4,199 66.1% 8,211 8,260 -0.6% Net financial charges (1,725) (1,9
Slide 43: D&A reported (€mn)
9M 2020 consolidated results D&A reported (€mn) 1 0 9M 2020 9M 2019 ∆ yoy Generation and Trading 1,375 4,912 -72% Enel Green Pow er 968 916 6% Distribution 2,219 2,187 1% Retail 923 736 25% Enel X 106 111 -5% Others and adjustm ents 139 145 -4% Total 5,730 9,010 -36% 42
Slide 44: Gross debt structure
9M 2020 consolidated results Gross debt1 structure Long term debt by currency After swap Interest rate composition Long term credit ratings 49% Rating Outlook 82% 25% Standard & Poors BBB+ Stable 55.3 €bn 3% 55.3 €bn 63.0 €bn Moody’s Baa2 Positive 6% 2% 3% 1% 75% 2% 5% Fitch A- Stable 1% 36% 3% 7% E
Slide 45: Debt structure by instrument (€bn)
9M 2020 consolidated results Debt structure by instrument (€bn) EGP SpA and Latin Africa, Asia Debt by instrument Enel Spa EFI Italy Iberia North America Europe Total Central America and Oceania Others Bonds 7.34 29.40 - - 0.02 4.83 - 0.05 - 41.64 Bank Loans 0.40 - 0.39 3.87 2.23 1.83 0.51 0.20 0.68
Slide 46: Debt maturity coverage split by typology (€bn)
9M 2020 consolidated results Debt maturity coverage split by typology (€bn) 30.3 25.4 7.0 Available committed credit lines1 19.8 8.4 23.3 7.6 6.7 7.7 6.0 1.0 1.0 Cash Short Term 3.2 1.5 5.7 6.6 5.6 Bank Loans and Others 0.6 1.8 4.5 Bonds 0.1 1.4 9M 2020 2020 2021 2022 2023 2024 After 2024 45 1. Of w
Slide 47: Balance sheet (€mn)
9M 2020 consolidated results Balance sheet (€mn) 9M 2020 FY 2019 Δ Net financial debt 48,953 45,175 8.4% Shareholders' equity 43,414 46,938 -7.5% Net capital employed 92,367 92,113 0.3% 46
Slide 48: Balance sheet structure (€bn)
9M 2020 consolidated results Balance sheet structure (€bn) Net fixed assets 104.9 10.2 1.7 0.0 (4.5) 93.0 (8.1) 92.4 43.4 49.0 Assets WIP (tangible Equity NWC Provisions Assets held Net capital Equity Net Debt & intangible) Investment for sale employed Net debt / Net capital employed 54% 47
Slide 49: Headcount
9M 2020 consolidated results Headcount 1 0 9M 2020 9M 2019 ∆ yoy Generation and Trading 8,272 9,432 -12% Enel Green Pow er 8,168 7,957 3% Distribution 34,455 34,822 -1% Retail 6,288 6,336 -1% Enel X 2,971 2,808 6% Others and adjustm ents 6,581 6,898 -5% Total 66,735 68,253 -2% 48
Slide 50: Disclaimer
9M 2020 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 51: Contact us
9M 2020 consolidated results Contact us Contacts Email investor.relations@enel.com Phone +39 06 8305 7975 Download App Monica Girardi iOS Android Head of Group Investor Relations Investor Relations team Mobile App Federico Baroncelli Enel Investors Serena Carioti Federica Dori Federica Pozzi Fabrizi