Enel Spa · MIL:ENEL
Enel Spa — Q1 2024 Earnings Presentation
40 slides from Enel Spa's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Consolidated results
First Quarter 2024 Consolidated results May 9th, 2024
Slide 2: First Quarter 2024 Consolidated results - CFO
First Quarter 2024 Consolidated results Stefano De Angelis CFO
Slide 3: Key highlights of the period
Key highlights of the period Business performance Cash generation Efficiencies EBITDA1 Net Income1 FFO Addressable cost baseline 6.1 €bn 2.2 €bn 4.4 €bn 300 €mn +12% vs PY +44% vs PY +0.8 €bn vs Q1 2023 Reduction vs 2022 Strong start of 2024 Improved cash Efficiency program well driven by solid deli
Slide 4: Solid operating performance across all businesses
Solid operating performance across all businesses Q1 2023 Q1 2024 Continued effort on RAB/customer1 (€/cl) 642 672 improving grids’ profitability and efficiency Opex/customer1 (€/cl) 10.7 10.4 Visible progress Renewable production2 (TWh) 33 37 towards a greener asset base RES production on total2 58
Slide 5: Strong delivery in Q1 drives double digit increase in EBITDA
Strong delivery in Q1 drives double digit increase in EBITDA Ordinary EBITDA1 (€bn) EBITDA by business3 EBITDA by geography3 +12% ROW 5.5 6.1 1.7 2.1 0.5 Q1 2024 Q1 2024 +26% 6.1 €bn 6.1 €bn vs PY 4.1 4.5 5.0 Q1 2023 Q1 2024 Networks result shows solid EBITDA expansion, net of 2023 disposals, integr
Slide 6: Grids: EBITDA up double digit net of perimeter effect
Grids EBITDA up double digit net of perimeter effect Ordinary EBITDA evolution (€bn) -5% Improved remuneration and new investments supports positive EBITDA 2.2 2.5 00 - 0.1 2.1 trajectory in Italy 2.0 00 0.3 0.1 1.5 00 Growth in Latam benefitted from tariff indexation in Argentina 1.9 1.0 00 0.5 00
Slide 7: Integrated business: renewable growth and optimized E2E management
Integrated business Renewable growth and optimized E2E management support a solid and consistent performance Ordinary EBITDA evolution (€bn) +24% Strong renewables growth driven by 0.4 4.1 4.5 00 4.0 00 0.7 2.8 TWh higher production and 3.5 00 3.3 supportive hedging strategy 3.0 00 0.1 (0.2) 2.5 00
Slide 8: Full Year 2024 guidance fully on track
Full Year 2024 guidance fully on track Full Year 2024 EBITDA guidance (€bn) Growth drivers Grids Global operating evolution in line with Q2-Q4 plan expectation expected delivery1 Investments on development and 22.1-22.82 quality upgrade in Italy fully on track Integrated business Perù (0.2) €bn ~11.
Slide 9: Delivering on a cost disciplined organization
Delivering on a cost disciplined organization Addressable cost baseline1 (€bn) Evolution vs 2022 Progress on CMD target 30% of 45% 1 €bn CMD (0.3) 300 €mn efficiencies 55% target 6.9 6.6 already 5.9 achieved Business Lines 2022 Efficiency @March 2024 CMD Target Holding costs @2026 8 1. Addressable c
Slide 10: Net Ordinary Income up by a sound 44% yoy
Net Ordinary Income up by a sound 44% yoy Profit & loss (€bn) Key Drivers Q1 2024 Q1 2023 ∆ yoy Financial expenses Cost of debt mostly stable with Gross Ordinary EBITDA 6.10 5.46 Debt reduction expected from 2Q24 +12% Financial charges down yoy impacted by D&A and Provisions (1.89) (1.86) FX hedges
Slide 11: FFO up by around 800 €mn versus Q1 2023
Improved cash generation: FFO up by around 800 €mn versus Q1 2023 Cash flow (€bn) 7.0 Continued 6.0 +0.8 €bn management 6.1 ( 0.4 ) 5.0 ( 0.2 ) (0.2) vs PY effort on cash 4.0 ( 0.7 ) generation 3.0 provides 4.4 visibility on 2.0 cash flow 1.0 - Ordinary ∆ ∆NWC & Income Financial FFO neutrality in EB
Slide 12: Pro Forma Net Debt at around 54 €bn
Pro Forma Net Debt at around 54 €bn Net debt evolution1 (€bn) 60.7 60.2 2.4 0.1 Hybrids 0.6 2.7 0.6 (4.4) 6.3 (0.2) FX impact FFO-Capex +1.7 €bn ~54 59.6 60.1 2 Dec. 31, 2023 FFO Capex APM Dividend paid Leasing Mar. 31, 2024 Deals agreed Pro Forma ND Reported to be cashed Net Debt in 1. HFS: Q1 2023
Slide 13: First Quarter 2024 Closing remarks
First Quarter 2024 Closing remarks
Slide 14: Closing remarks
Closing remarks 1 2 3 4 2024-2026 targets Strong Q1 confirmed with Consistent Announced results supported upside potential delivery on all disposals set to by a resilient to shareholder Business Plan be fully cashed in business remuneration in pillars the short term model line with CMD guidance 13
Slide 15: Annexes
First Quarter 2024 Consolidated results Annexes
Slide 16: Macroscenario
Q1 2024 consolidated results Macroscenario GDP (%) CPI (%) FX against €1 Spot Price (€/MWh) 1 Electricity Demand (TWh) Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Italy 0.35 2.32 0.97 9.53 - - 91.72 157.20 77.76 77.13 Iberia 2.21 4.07 3.23 5.00 - - 45.74 99.94 76.
Slide 17: Group consolidated net capacity by technology and geography
Q1 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 12,995 874 776 250 - 2,052 4,160 4,607 25,714 Iberia 4,746 2,884 - 2,367 3,328 2,333 241 5,445 21,344 Rest of World 10,596 1
Slide 18: Group consolidated net production by technology and geography
Q1 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 4,060 445 1,342 29 - 15 464 2,347 8,703 Iberia 2,131 2,167 - 719 6,591 1,052 - 2,957 15,618 Rest of World 10,132 8,562 94
Slide 19: Group total additional capacity by technology and geography
Q1 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 - - 13 - - - - 14 Iberia - - - 98 - - - - 98 Rest of World - - - 298 - - - - 298 Latin America - - - 198 - - - - 198 Arge
Slide 20: Renewable projects in execution
Q1 2024 consolidated results Renewable projects in execution: breakdown by technology and geography1 Solar & MW Wind Hydro Geothermal BESS Total Other Italy - 4 - 203 1,572 1,778 Iberia 33 10 - 661 42 746 Rest of World 530 156 - 2,263 283 3,232 Latin America 194 156 - 1,021 168 1,539 North America -
Slide 21: Renewables Pipeline
Q1 2024 consolidated results Pipeline Renewables Pipeline (GW) 2024-26 Additional capacity target2 0.4 ~389 76 184 5.8 13.4 GW 7.2 123 5.8 Gross Pipeline BESS 1 Early stage Mature In execution Capacity in execution Built capacity 1. It includes BESS for around 51 GW in early stage and around 25 GW i
Slide 22: Mature pipeline
Q1 2024 consolidated results Mature pipeline1 By technology By geography By COD 3% 10% 12% 7% 1% 32% 18% 15% 22% 123 GW 123 GW 123 GW 65% 75% 39% 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 23: Enel Grids KPIs
Q1 2024 consolidated results Enel Grids KPIs1 Electricity distributed Grid customers (mn) Smart meters (mn) Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Italy 53.7 53.2 31.9 31.8 31.7 31.6 Iberia 33.4 33.3 12.6 12.5 12.4 12.3 Rest of World 33.1 35.7 26.0 28.6 1.2 2.0 Latin America 33.1 31.9 26.0
Slide 24: Enel X Global Retail: Retail KPIs
Q1 2024 consolidated results Enel X Global Retail: Retail KPIs1 Power Gas Customers (mn) 2 Volumes (TWh) Customers (mn) Volumes (bsmc) Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Italy 17.8 21.2 19.8 23.4 4.2 4.6 1.7 2.1 Iberia 10.5 10.5 19.0 19.5 1.8 1.8 1.2 1.4 Rest of World 26
Slide 25: Enel X Global Retail: Enel X
Q1 2024 consolidated results Enel X Global Retail: Enel X Enel X Public Charging points (k) Street lighting (mn) Storage (MW) Demand Response (GW) Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Italy 19.7 18.7 1.6 1.6 - - 0.6 0.9 Iberia 5.6 3.9 0.1 0.1 - - 0.1 0.2 Rest of World 0.9
Slide 26: Capex
Q1 2024 consolidated results Capex1 (€mn) Global Generation Services Enel Grids Renewable Energies Enel X Global Retail 2 Total & Trading & Other Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Italy 53 72 810 661 292 775 142 121 3 8 1,300 1,637 Iberia
Slide 27: Asset development Capex
Q1 2024 consolidated results Asset development Capex1 (€mn) Global Generation Services Enel Grids Renewable Energies Enel X Global Retail 2 Total & Trading & Other Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Italy 44 62 348 285 269 752 40 18 0 1 70
Slide 28: Revenues
Q1 2024 consolidated results Revenues1 (€mn) Global Generation Services Enel Grids Renewable Energies Enel X Global Retail 2 Total & Trading & Other Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Italy 3,473 7,861 1,993 1,835 1,053 790 6,916 8,259 (4,
Slide 29: Reported EBITDA
Q1 2024 consolidated results Reported EBITDA1 (€mn) Global Generation Services Enel Grids Renewable Energies Enel X Global Retail 2 Total & Trading & Other Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Italy 652 158 983 912 523 (19) 1,025 830 21 16 3
Slide 30: Ordinary EBITDA
Q1 2024 consolidated results Ordinary EBITDA1 (€mn) Global Generation Services Enel Grids Renewable Energies Enel X Global Retail 2 Total & Trading & Other Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Italy 652 158 983 912 523 (19) 1,025 830 21 16 3
Slide 31: Reported EBIT
Q1 2024 consolidated results Reported EBIT1 (€mn) Global Generation Services Enel Grids Renewable Energies Enel X Global Retail 2 2 Total & Trading & Other Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Italy 609 123 631 572 442 (97) 766 575 4 (1) 2,4
Slide 32: From EBITDA to net income
Q1 2024 consolidated results From EBITDA to net income1 (€mn) Q1 2024 Q1 2023 Q1 2024 Q1 2023 ∆ yoy ∆ yoy reported reported ordinary ordinary EBITDA 5,892 4,765 23.7% 6,094 5,463 11.6% D&A (1,891) (1,814) (1,891) (1,861) EBIT 4,001 2,951 35.6% 4,203 3,602 16.7% Net financial charges (734) (865) (734
Slide 33: D&A reported
Q1 2024 consolidated results D&A reported (€mn) Q1 2024 Q1 2023 ∆ yoy Generation and Trading 192 197 -2.5% Enel Green Power 414 372 11.3% Grids 762 736 3.5% Enel X Global Retail 1 471 450 4.7% Others and adjustments 52 59 -11.9% Total 1,891 1,814 4.2% 1. Enel X Global Retail includes Enel X Way 32
Slide 34: Long-term debt structure
Q1 2024 consolidated results Long-term debt1 structure By currency Interest rate Long term By currency After swap composition credit ratings 52% Rating Outlook 82% 17% S&P BBB Stable 73.0 €bn 3% 73.0 €bn 73.0 €bn Moody’s Baa1 Negative 6% 1% 4% 3% 3% 83% 1% 10% Fitch BBB+ Stable 35% EUR USD BRL Float
Slide 35: Debt structure by instrument
Q1 2024 consolidated results Debt structure by instrument (€bn) 34
Slide 36: Debt maturity coverage split by typology
Q1 2024 consolidated results Debt maturity coverage split by typology (€bn) Available liquidity 32.2 Bank Loans and Others 7.7 Bonds 6.8 26.7 €bn 19.9 8.6 8.8 24.5 8.8 7.3 6.6 2.0 3.3 2.2 2.0 2.7 6.6 5.3 5.5 6.6 3.9 Available committed credit lines1 2024 2025 2026 2027 2028 After 2028 Cash 1. Of whi
Slide 37: Balance sheet
Q1 2024 consolidated results Balance sheet (€mn) Q1 2024 FY 2023 Δ Net financial debt 60,696 60,163 0.9% Shareholders' equity 48,185 45,109 6.8% Net capital employed 108,881 105,272 3.4% 36
Slide 38: Headcount
Q1 2024 consolidated results Headcount 1 Q1 2024 FY 2023 ∆ yoy Generation and Trading 5,609 5,725 -2.0% Enel Green Power 8,841 8,891 -0.6% Distribution 30,817 30,946 -0.4% 1 Enel X Global Retail 8,781 8,926 -1.6% Others and adjustments 6,857 6,567 4.4% Total 60,905 61,055 -0.2% 1. Enel X Global Reta
Slide 39: Disclaimer
Q1 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 40: 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