Enel Spa · MIL:ENEL
Enel Spa — Q3 2023 Earnings Presentation
44 slides from Enel Spa's earnings presentation, Nov 7, 2023
Slide 1: Nine months consolidated results
Nine months Consolidated results November 7th, 2023
Slide 2: Key highlights of the period
Key highlights of the period Targets Business FFO revised performance improvement for 2023 16.4 €bn 10.6 €bn EBITDA1 21.5-22.5 €bn +29% vs PY +9.5 €bn vs PY Net Income1 6.4-6.7 €bn Strong underlying performance EBITDA performance FFO up >9x YoY driven drives guidance upgrade driven by a sound recove
Slide 3: Solid and visible operating performance across all businesses
Solid and visible operating performance across all businesses Renewable production1 (TWh) B2C electricity sales3 (TWh) RAB/customer (€/cl) +12TWh +5% +6% 110.00 35.00 31 33 650.00 100.00 30.00 600.00 90.00 25.00 16 17 550.00 80.00 20.00 70.00 104 15.00 615 650 60.00 92 10.00 500.00 50.00 5.00 15 16
Slide 4: Capex deployment to support growth in core countries
Capex deployment to support growth in core countries Gross capex by business Gross capex by geography 4% Increasing portion of 8% capex in energy 42% infrastructures with 9M 2023 9M 2023 45% 9.41 €bn 49% 27% 9.41 €bn visible returns 33% More than 60% 9% 16% investments allocated Capacity market 16%
Slide 5: Strong delivery across all businesses drives EBITDA up by 29%
Strong delivery across all businesses drives EBITDA up by 29% versus previous year Ordinary EBITDA evolution1 (€bn) EBITDA by geography +29% 2%4% 24% 16.4 9M 2023 49% 12.7 0.8 3.3 (0.4) Stewardship 6.1 16.4 €bn 5.3 21% 10.4 7.1 Italy Spain North 9M 2022 Grids Integrated Stewardship & 9M 2023 busines
Slide 6: Sound integrated business growth supported by macro normalization
Sound integrated business growth supported by the macro environment normalization Ordinary EBITDA evolution (€bn) EBITDA by geography 3% 4% +46% 22% Hydro production up by 7 TWh yoy, fully recovering after drought of 2022 9M 2023 50% 10.4 €bn Reduced market volatility drives the normalization of ele
Slide 7: Grids EBITDA up by 15% yoy thanks to supportive regulatory frameworks
Grids EBITDA up by 15% yoy thanks to supportive regulatory frameworks Ordinary EBITDA evolution (€bn) EBITDA by geography 5% +15% (225) €mn perimeter Performance in Italy supported by 29% effect higher RAB and CPI indexation 9M 2023 45% 6.1 6.1 €bn 5.3 1.7 Latam 1.6 Positive impact from tariff adjus
Slide 8: Nine months 2023 Financial results
Nine months 2023 Financial results
Slide 9: Net Ordinary Income
Net Ordinary Income Profit & loss (€bn) Financial Expenses 9M 2023 9M 20221 ∆ yoy Higher financial expenses driven by Ordinary EBITDA 16.4 12.7 +29% interest rates dynamics D&A and Provisions (5.5) (5.5) Income taxes Financial expenses2 (2.3) (1.7) Tax rate at around 29%, in line with expectations I
Slide 10: Solid cash generation with FFO reaching ~11 €bn
Solid cash generation with FFO reaching ~11 €bn 9M 9M H1 2023 Q3 2023 2023 2022 Ordinary EBITDA 10.7 5.7 16.4 12.7 Significant ∆NWC & ( 2.1 ) 0.8 (1.3) (8.3) Provisions 1 FFO expansion Income supported by ( 1.6 ) ( 0.3 ) (1.9) (1.3) Taxes EBITDA Financial performance ( 1.7 ) ( 0.9 ) (2.6) (1.9) Expe
Slide 11: Pro Forma Net Debt at around 57 €bn
Pro Forma Net Debt at around 57 €bn Net debt evolution1 (€bn) 9M 20224 9M 2023 ND/EBITDA 3.6x 2.6x Cashed-in after Sept 30th: (LTM) 2.1 €bn Romania 0.5 €bn Chile PV 1.3 63.3 60.1 2.6 Hybrids 1.0 5.1 3.2 (0.7) ~57 (10.6) 9.0 59.1 GRANTS 60.7 FFO-Capex +1.5 €bn Dec. 31, 2022 FFO Net Capex 2 APM Divide
Slide 12: Continued execution of M&A plan
Continued execution of M&A plan Net Debt 9M 2023 impact (€bn) EBITDA (€bn) Sale of Argentina generation1,2 0.1 - Exit from Romania2 2.1 0.5 ✔ Deals closed Sale of 50% stake in Australia1,2 0.1 - Sale of PV Assets in Chile 0.5 - Deals Sale of Perù distribution & supply1 3.1 0.2 announced Sale of 50%
Slide 13: Nine months 2023 2023 Guidance
Nine months 2023 2023 Guidance
Slide 14: Full Year 2023: EBITDA and Net Income targets
Full Year 2023: EBITDA and Net Income targets FY 2023E Ordinary EBITDA (€bn) FY 2023E Ordinary Net Income (€bn) From 20.4 - 21.0 to 21.5 - 22.5 From 6.1 - 6.3 to 6.4 – 6.7 16.4 5-6 21.5-22.5 5.0 ~1.5 6.4-6.7 Q3 5.6 Q3 1.8 Q2 5.3 Q2 1.8 Q1 5.5 Q1 1.5 9M 2023 Q4 2023 FY 2023 9M 2023 Q4 2023 FY 2023 Ne
Slide 15: Nine months 2023 Closing remarks
Nine months 2023 Closing remarks
Slide 16: Closing remarks
Closing remarks Strong operating evolution provides full visibility for future targets 2024-26 Strategic Plan Solid cash flow generation to be presented supports credit metrics on November 22nd, 2023 Sound progresses in the disposals plan 15
Slide 17: Annexes
Nine months 2023 Consolidated results Annexes
Slide 18: EBITDA and Net Income: impact of disposals
EBITDA and Net Income: impact of disposals Ordinary EBITDA1 (€bn) Ordinary Net Income1 (€bn) 21.5-22.5 (0.6) 6.4-6.7 (0.4) (0.3) (0.1) New Deals Deals Deals in Baseline into New Deals Deals Deals in Baseline FY 2023 cashed-in agreed to advanced 2024 FY 2023 cashed-in ageed to advanced into Guidance
Slide 19: Full Year 2023: Net Debt
Full Year 2023: Net Debt FY2023E Net Debt (€bn) 2.1 €bn Romania 0.5 €bn Chile PV FY2023 Pro Forma Net Debt 63.3 set to decline (2.6) 60-61 (3.2) vs. 9M 2023 confirming a pro- forma ND/EBITDA ratio at 2.4x-2.5x 9M 2023 Deals cashed-in Deals agreed to Deals in FY 2023 Gross of after Sept 30th cash-in
Slide 20: Macroscenario
9M 2023 consolidated results Macroscenario GDP (%) CPI (%) FX against €1 Spot Price (€/MWh) Electricity Demand (TWh) 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 Italy 0.87 4.70 7.70 7.46 - - 128.33 324.23 232.68 240.99 Iberia 2.50 6.46 3.46 8.96 - - 91.13 187.60 2
Slide 21: Group consolidated net capacity by technology and geography
9M 2023 consolidated results Group consolidated net capacity: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 12,997 861 776 54 - 2,354 4,720 4,607 26,369 Iberia 4,746 2,882 - 1,665 3,328 2,333 1,644 5,445 22,044 Latin America 10,545
Slide 22: Group consolidated net production by technology and geography
9M 2023 consolidated results Group consolidated net production: breakdown by technology and geography Solar & GWh Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 11,521 966 3,953 72 - 95 8,408 8,362 33,375 Iberia 3,488 4,388 - 2,283 19,357 3,382 718 12,366 45,982 Latin America 30,02
Slide 23: Group total additional capacity by technology and geography
9M 2023 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 - 101 - 11 117 Iberia - - - - - - - - - Latin America 3 771 - 580 - 34 - 54 1,442 Argentina - - - - - - - 54 54 Bra
Slide 24: Renewable projects in execution
9M 2023 consolidated results Renewable projects in execution: breakdown by technology and geography1 Solar & MW Wind Hydro Geothermal BESS Total Other Italy 29 7 - 384 1,734 2,154 Iberia 9 10 - 2,095 - 2,114 Latin America 524 158 - 1,323 203 2,208 Rest of Europe - - - 84 - 84 North America - - - 1,6
Slide 25: Renewables Pipeline
9M 2023 consolidated results Pipeline Renewables Pipeline (GW) 2023-25 Additional capacity target2 1.7 477 88 247 10.0 21 GW 9.3 132 ~10 Gross Pipeline BESS 1 Early stage Mature In execution Capacity in execution Built capacity 1. It includes BESS for around 61 GW in early stage and around 27 GW in
Slide 26: Mature pipeline
9M 2023 consolidated results Mature pipeline1 By technology By geography By COD 3% 12% 11% 2% 18% 31% 4% 13% 132 GW 132 GW 132 GW 23% 66% 37% 81% Wind Italy North America 2024 Solar Iberia Rest of Europe 2025 Hydro & Others Latin America Africa, Asia & Oceania >2025 1. It excludes BESS mature pipeli
Slide 27: Enel Grids KPIs
9M 2023 consolidated results Enel Grids KPIs1 Electricity distributed2 Grid customers (mn) Smart meters2(mn) 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 Italy 160.2 169.0 31.8 31.7 31.7 31.6 Iberia 103.9 102.0 12.5 12.4 12.4 12.3 Latin America 93.6 104.5 25.8 28.7 1.0 0.6 Argentina 13.9 13.1 2.6
Slide 28: Retail KPIs
9M 2023 consolidated results Retail KPIs1 Power Gas Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc) 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 Italy 19.2 21.5 66.6 74.3 4.5 4.5 2.9 3.3 Iberia 10.5 10.6 59.5 60.1 1.8 1.8 2.8 3.7 Latin America 25.8 28.7 96.4 100.5 0.0 0
Slide 29: Enel X
9M 2023 consolidated results Enel X Enel X Public Charging points (k) Street lighting (mn) Storage (MW) Demand Response (GW) 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 Italy 19.7 16.9 1.6 1.5 - - 0.9 0.6 Iberia 5.0 3.3 0.1 0.1 - - 0.2 - South America 0.8 0.4 1.3 1.2 0.5 0.5 0.0
Slide 30: Capex
9M 2023 consolidated results Capex1 (€mn) Global Generation Services Enel Grids Renewable Energies Retail Enel X Total & Trading & Other 2 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 Italy 257 237 2,113 1,791 1,326 515 268 382 98 65
Slide 31: Asset development Capex
9M 2023 consolidated results Asset development Capex1 (€mn) Global Generation Services Enel Grids Renewable Energies Retail Enel X Total & Trading & Other 2 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 Italy 200 188 936 906 1,229 420
Slide 32: Revenues
9M 2023 consolidated results Revenues1 (€mn) Global Generation Services Enel Grids Renewable Energies Retail Enel X Total & Trading & Other 2 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 Italy 18,401 42,084 5,586 5,203 1,944 1,623 20
Slide 33: Reported EBITDA
9M 2023 consolidated results Reported EBITDA1 (€mn) Global Generation Services Enel Grids Renewable Energies Retail Enel X Total & Trading & Other 2 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 Italy 1,728 2,249 2,734 2,629 311 (511)
Slide 34: Ordinary EBITDA
9M 2023 consolidated results Ordinary EBITDA1 (€mn) Global Generation Services Enel Grids Renewable Energies Retail Enel X Total & Trading & Other 2 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 Italy 1,728 2,263 2,734 2,651 311 (509)
Slide 35: Reported EBIT
9M 2023 consolidated results Reported EBIT1 (€mn) Global Generation Services Enel Grids Renewable Energies Retail Enel X Total & Trading & Other 2 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 Italy 1,619 2,147 1,717 1,644 63 (752) 2,
Slide 36: From EBITDA to net income
9M 2023 consolidated results From EBITDA to net income1 (€mn) 9M 2023 9M 2022 9M 2023 9M 2022 ∆ yoy ∆ yoy reported reported ordinary ordinary EBITDA 15,220 12,327 23.5% 16,386 12,671 29.3% D&A (5,385) (6,260) (5,527) (5,456) EBIT 9,835 6,067 62.1% 10,859 7,215 50.5% Net financial charges (2,496) (1,
Slide 37: D&A reported
9M 2023 consolidated results D&A reported1 (€mn) 9M 2023 9M 2022 ∆ yoy Generation and Trading 548 702 -21.9% Enel Green Power 1,221 1,088 12.2% Grids 2,187 3,006 -27.2% Retail 1,082 1,098 -1.5% Enel X 144 162 -11.1% Others and adjustments 203 204 -0.5% Total 5,385 6,260 -14.0% 1. 9M 2022 restated fi
Slide 38: Long-term debt structure
9M 2023 consolidated results Long-term debt1 structure By currency Interest rate Long term By currency After swap composition credit ratings 50% Rating Outlook 82% 18% S&P BBB+ Negative 71.2 €bn 2% 71.2 €bn 71.2 €bn Moody’s Baa1 Negative 7% 1% 1% 5% 2% 82% Fitch BBB+ Stable 1% 3% 36% 10% EUR USD BRL
Slide 39: Debt structure by instrument
9M 2023 consolidated results Debt structure by instrument (€bn) 1. Fair Value of the Cross Currency Swaps stipulated to hedge the financing with third parties in foreign currency 38
Slide 40: Debt maturity coverage split by typology
9M 2023 consolidated results Debt maturity coverage split by typology (€bn) Available liquidity1 35.5 Bank Loans and Others 8.7 3.8 Bonds 23.1 €bn 26.8 10.0 8.7 8.6 19.3 7.3 3.2 2.0 3.1 2.0 0.4 6.8 5.6 6.6 0.2 5.3 Available committed 0.2 credit lines2 2023 2024 2025 2026 2027 After 2027 Cash 1. Liqu
Slide 41: Balance sheet
9M 2023 consolidated results Balance sheet (€mn) 9M 2023 FY 2022 Δ Net financial debt 63,312 60,068 5.4% Shareholders' equity 48,548 42,082 15.4% Net capital employed 111,860 102,150 9.5% 40
Slide 42: Headcount
9M 2023 consolidated results Headcount 1 9M 2023 FY 2022 ∆ yoy Generation and Trading 5,951 6,447 -7.7% Enel Green Power 9,086 9,397 -3.3% Distribution 31,036 30,262 2.6% Retail 5,388 5,418 -0.6% Enel X 2,915 2,875 1.4% Others and adjustments 10,836 10,725 1.0% Total 65,212 65,124 0.1% 41
Slide 43: Disclaimer
9M 2023 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 44: Contact us
9M 2023 consolidated results 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 Chann