Enel Spa · MIL:ENEL
Enel Spa — Q1 2021 Earnings Presentation
48 slides from Enel Spa's earnings presentation, May 6, 2021
Slide 1: First Quarter Consolidated results
First Quarter Consolidated results May 6th, 2021
Slide 2: Key highlights of the period
Key highlights of the period Financial Operating Simplification: results performance 82.3% stake in in line recovering ENIA post with plans post COVID-19 merger and PTO completion 1
Slide 3: EBITDA results in line with expectations
EBITDA results in line with expectations Expected -12% ✓ Normalization of non recurring (356) €mn ✓ FX devaluation (74) €mn ✓ Hedged prices (110) €mn -13% ✓ Tariff indexation in Brazil 30 €mn ✓ Short position normalization (135) €mn 0.65 Unexpected items Unexpected items ✓ CO2 regularization 188 €mn
Slide 4: Stewardship model
Investments up double digit yoy Capex by business model and GBL (€bn) Ownership model +10% 2% Q1 2020 Q1 2021 Ownership model 6% 2.50 Consolidated RES 42.5 45.5 capacity (GW) 1.9 2.1 2.00 0.1 2.0 €bn Smart meter 2.0 (mn) 14.2 19.7 47% 45% Customers free market 17.3 18.2 1.50 (mn) 2% Stewardship mode
Slide 5: Global Power Generation
Global Power Generation Generation evolution1,2 NOTA Renewable capacity evolution LTM and outlook2 (GW) 66% emission free 100% 54% in execution PRODUCTION Q1 2021 56 TWh 2.9 0.1 5.6 46% 48.8 46.0 CAPACITY (GW) Q1 2020 Q1 2021 46.0 48.8 Q1 2020 Built Portfolio Q1 2021 Q2-Q4 FY 2021E 42.2 38.9 rotatio
Slide 6: Renewable growth: optimally positioned on 2021-23 target and beyond
Renewable growth: optimally positioned on 2021-23 target and beyond Renewables Pipeline (GW) Gap to 2021-23 target3 6.7 GW 2021-23 Additional Capacity target 19.5 GW ~21 Pipeline Coverage Ratio ~4x ~127 136 GW Early stage LTM Growth ~222 Converted to mature ~34 GW Abandoned ~28 GW ~61 12.6 LTM Growt
Slide 7: Infrastructure & Networks
Infrastructure & Networks Electricity distributed1 (TWh) Smart meter1 (mn) xx Smart meter 2.0 +2% +400k 130 .00 123 126 Q1 2020 Q1 2021 45.0 0 44.5 0 120 .00 44.0 0 44.4 Latam 110 .00 34 34 20.2 20.5 +1% 43.5 0 44.0 100 .00 90. 00 43.0 0 80. 00 70. 00 54.2 54.8 +1% 42.5 0 Europe 89 92 42.0 0 60. 00
Slide 8: Retail & Enel X
Retail & Enel X Retail Enel X and new infrastructures Free market Free market Q1 2020 Q1 2021 power customers (mn) energy sold (TWh)1 +2.3x Charging points2 (k) 85 195 +900k +4% +37% 19 50 44.7 46.4 Fiber deployment 8.4 11.5 45 (Households passed mn) 18 40 18.2 35 +2% +17% 18 30 25 34.2 34.9 Street
Slide 9: Enel Américas: entering a new restructuring phase
Enel Américas: entering a new restructuring phase Enel Americas’ capacity evolution (GW) PRE-TRANSACTION POST-TRANSACTION 82.3% stake in Enel Américas after EGP merger and PTO 33% 45% Total cash out 1.3 €bn 11 GW 15 GW 47% 55% 9% Higher visibility on renewables 11% operations to enhance value creati
Slide 10: Q1 2021 Financial results
Q1 2021 Financtal results CNC l
Slide 11: Financial highlights (€mn)
Financial highlights (€mn) EBITDA1 Net Income1 FFO Net Debt 4,159 1,214 2,549 45,884 -12% -5% +24% +1% Q1 2020 4,741 1,281 2,061 45,4152 1. Ordinary figures. 10 2. As of December 2020.
Slide 12: Ordinary EBITDA
Ordinary EBITDA By business line By geography 2% Renewables and networks account 22% for 70% of the overall EBITDA 1.5 1.7 Q1 2021 Q1 2021 Resilient growth in 2% 50% 4.2 €bn1 4.2 €bn1 retail and networks operations 24% More than 75% of EBITDA 1.0 coming from Europe Italy Latin America Iberia RoW Nor
Slide 13: Global Power Generation
Global Power Generation Trading activities normalizing after a strong Q1 2020 EBITDA evolution (€mn) EBITDA by geography EGP Conventional Generation & Trading 3,00 0 -18% 70 €mn from new capacity installed 6% 2,50 0 1,496 and +2.1 TWh increase in volumes 32% 1,834 29% 2,00 0 Q1 2021 Negative impact
Slide 14: Infrastructure and Networks
Infrastructure and Networks EBITDA +2% yoy net of FX and non recurring items EBITDA evolution (€mn) EBITDA by geography -11% 2,50 0.00 European networks performance 21% 26% 1,958 1,733 +2% net of provision reversal 2,00 0.00 Latam 433 Q1 2021 Latam benefits from CPI indexation 1% 1,50 0.00 360 1.7 €
Slide 15: Retail
Retail +900k customers in free market driven by Romania and Italy EBITDA evolution (€mn) Free market – Energy sold (TWh)1 +5% -3% 16.2 17.0 Improved performance in Italy and Romania led by free market 4.5 4.7 +4% 941 912 Italy 11.7 12.3 +5% Regulated -16% Lower volumes in Spain due to markets 151 12
Slide 16: Net Ordinary Income
Net Ordinary Income Net Ordinary Income evolution (€bn) -5% Net Income up by single digit net of FX and non recurring 1.4 0.1 1.3 1.2 0.1 1.0 0.2 1.2 Average cost of debt at 3.7% 0.8 0.0 -20 bps vs. 1Q 2020 (0.6) 0.6 0.4 Minorities decrease reflects 0.2 simplification efforts 0.0 Q1 2020 EBITDA D&A
Slide 17: Cash flow (€bn)
Cash flow (€bn)1 Strong FFO result 4.8 4.3 3.8 4.2 ( 0.2 ) 3.3 2.8 ( 0.8 ) ( 0.2 ) 2.3 (0.4) 2.5 ( 2.1 ) 1.8 1.3 0.8 0.5 0.3 -0.2 2 Ordinary ∆ Provisions ∆Working Income Financial FFO Capex FCF EBITDA capital taxes expenses 3 & other PY 4.7 (0.4) (1.5) - (0.4) 2.14 (1.9) 0.24 Delta YoY -12% +47% -47
Slide 18: Gross debt and liquidity
Gross debt and liquidity Debt evolution (€bn) Available liquidity -1% 2.1 €bn dividend paid in the period 59.0 58.3 5.2 2.2 €bn hybrids issued in March 60 6.0 5.2 50 7.6 7.3 accounted as equity 20.4 €bn 40 30 15.2 20 45.4 45.9 10 1 €bn negative FX impact on debt - Dec 31, 2020 March 31, 2021 Availab
Slide 19: FY 2021 guidance confirmed
FY 2021 guidance confirmed FY 2021 Guidance (€bn) 18.7-19.3 Stewardship model: value creation 17.9 beyond expectations Ownership model: industrial growth 5.4-5.6 and operating deployment on track 0.38 €/sh fixed DPS for 2021 EBITDA FX Ownership & EBITDA Net Income FY 2020 devaluation Stewardhip FY 2
Slide 20: Closing remarks
Closing remarks Full year 2021 Value creation Full visibility AGM on guidance from on accelerated May 20th to confirmed stewardship delivery of approve the business new renewable model capacity 2020 dividend payment 19
Slide 21: First Quarter 2021 Consolidated results Annexes
First Quarter 2021 Consolidated results Annexes
Slide 22: Macroscenario
Q1 2021 consolidated results Macroscenario GDP (%) CPI (%) FX against €1 Spot Price (€/MWh) Electricity Demand (TWh) 2 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Italy (1.44) (5.80) 0.58 0.29 - - 59.31 39.60 78.63 76.97 Iberia (4.72) (4.28) 0.60 0.57 - - 44.41 35
Slide 23: Group consolidated net capacity: breakdown by technology and geography
Q1 2021 consolidated results Group consolidated net capacity: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 12,424 771 769 29 - 2,248 5,583 4,583 26,408 Iberia 4,748 2,422 - 610 3,328 2,334 2,764 5,445 21,651 Latin America 10,582 2,
Slide 24: Group consolidated net production: breakdown by technology and geography
Q1 2021 consolidated results Group consolidated net production: breakdown by technology and geography Solar & GWh Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 4,233 407 1,355 15 - 84 2,164 2,281 10,538 Iberia 2,356 1,854 - 149 6,909 967 213 2,352 14,800 Latin America 8,693 1,663
Slide 25: Group total additional capacity: breakdown by technology and geography
Q1 2021 consolidated results Group total additional capacity1: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 11 - - - - - - - 11 Iberia - - - 1 - - - - 1 Latin America - 143 - 75 - - 1 - 219 Argentina - - - - - - - - - Brazil - 143
Slide 26: Renewable projects in execution: breakdown by technology and geography
Q1 2021 consolidated results Renewable projects in execution: breakdown by technology and geography1 Solar & MW Wind Hydro Geothermal Total Other Italy 171 59 4 1 235 Iberia 439 18 - 1,873 2,330 Latin America 2,293 156 28 2,988 5,466 Rest of Europe 201 - - 6 207 North America 953 - - 1,445 2,398 Afr
Slide 27: EGP mature pipeline
Q1 2021 consolidated results EGP mature pipeline By technology By geography By COD 1% 14% 10% 7% 9% 12% 46% ~61 GW ~61 GW ~61 GW 37% 53% 57% 20% 35% Wind Italy North America 2022 Solar Iberia Rest of Europe 2023 Hydro & Others Latin America Africa, Asia & Oceania >2023 26
Slide 28: Infrastructure & Networks KPIs
Q1 2021 consolidated results Infrastructure & Networks KPIs Electricity distributed (TWh) 1 End users (mn) Smart meters (mn)1 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Italy 54.8 54.2 31.4 31.4 30.7 30.8 Iberia 32.6 30.5 12.3 12.2 12.4 12.2 Latin America 34.0 34.2 27.8 27.4 0.4 0.4 Argentina 4
Slide 29: Retail KPIs
Q1 2021 consolidated results Retail KPIs Power Gas 1 Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc) Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Italy 22.4 23.4 23.9 23.4 4.1 4.2 2.0 2.1 Iberia 10.3 10.6 20.7 21.5 1.7 1.7 1.6 1.6 Latin America 27.8 27.4 31.9 30.4 0.0 0
Slide 30: Enel X KPIs
Q1 2021 consolidated results Enel X KPIs Charging Points1 (k) Street lighting (mn) Electric buses (#) Storage (MW) Demand Response (GW) Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Italy 29.5 18.2 1.6 1.6 - - 12 13 0.5 0.3 Iberia 7.5 5.1 0.1 0.1 - - 20 20 - - Latin
Slide 31: Baseload power price & production sold forward
Q1 2021 consolidated results Baseload power price & production sold forward Baseload price 2021 2022 2023 Italy (€/MWh) 52.3 53.9 55.3 Iberia (€/MWh) 47.2 48.4 49.2 Production sold forward 2021 2022 2023 price % price % price % 1 51.9 89% 54.0 58% - - Italy (€/MWh) 1 70.7 97% 74.2 62% - - Iberia (€/
Slide 32: Capex (€mn)
Q1 2021 consolidated results Capex1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Networks & Other Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Italy 36 25 481 486 72 35 74 72 13 13
Slide 33: Asset development Capex (€mn)
Q1 2021 consolidated results Asset development Capex1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Networks & Other Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Italy 24 11 234 171
Slide 34: Revenues (€mn)
Q1 2021 consolidated results Revenues1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Networks & Other Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Italy 3,896 6,669 1,746 1,755 566 5
Slide 35: Reported EBITDA (€mn)
Q1 2021 consolidated results Reported EBITDA1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Networks & Other Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Italy 109 130 876 857 329 35
Slide 36: Ordinary EBITDA (€mn)
Q1 2021 consolidated results Ordinary EBITDA1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Networks & Other Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Italy 110 133 897 867 330 36
Slide 37: Reported EBIT (€mn)
Q1 2021 consolidated results Reported EBIT1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Networks & Other Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Italy 67 86 589 578 261 285 53
Slide 38: From EBITDA to net income (€mn)
Q1 2021 consolidated results From EBITDA to net income1 (€mn) Q1 2021 Q1 2020 Q1 2021 Q1 2020 ∆ yoy ∆ yoy reported reported ordinary ordinary EBITDA 4,091 4,708 -13.1% 4,159 4,741 -12.3% D&A (1,566) (1,599) (1,561) (1,607) EBIT 2,525 3,109 -18.8% 2,598 3,134 -17.1% Net financial charges (421) (618)
Slide 39: D&A reported (€mn)
Q1 2021 consolidated results D&A reported (€mn) 1 0 Q1 2021 Q1 2020 ∆ yoy Generation and Trading 223 217 3% Enel Green Power 310 312 -1% Distribution 655 682 -4% Retail 285 306 -7% Enel X 41 33 24% Others and adjustments 52 49 6% Total 1,566 1,599 -2% 38
Slide 40: Gross debt structure
Q1 2021 consolidated results Gross debt1 structure Long term debt by currency After swap Interest rate composition 48% 20% 83% 54.2 €bn 2% 54.2 €bn 59.0 €bn 8% 2% 1% 5% 2% 80% 2% 3% 36% 7% 1% EUR USD BRL EUR USD BRL CLP Floating Fixed + Hedged CLP COP Other COP Other GBP 1. In nominal terms 39
Slide 41: Debt evolution and credit ratings
Q1 2021 consolidated results Debt evolution and credit ratings Net debt evolution (€bn) Long term credit ratings 60 55 50 2.1 0.1 Rating Outlook 1.0 45 45.4 (0.5) (2.2) 44.9 45.9 S&P BBB+ Stable 40 35 Moody’s Baa1 Stable 30 25 Fitch A- Stable 20 Dec 31, FCF Dividends APM Hybrids FX 1 March 31, 2020
Slide 42: Debt structure by instrument (€bn)
Q1 2021 consolidated results Debt structure by instrument (€bn) EGP SpA Africa, Enel and Latin North Debt by instrument EFI Italy Iberia Europe Asia and Total Spa Central America America Oceania Others Bonds 5.63 30.15 - - 0.02 4.58 - 0.06 - 40.44 Bank Loans 1.39 - 0.36 3.73 2.19 1.58 0.42 0.26 0.33
Slide 43: Debt maturity coverage split by typology (€bn)
Q1 2021 consolidated results Debt maturity coverage split by typology (€bn) Available liquidity 5.2 25.3 6.9 20.4 €bn 15.2 7.3 7.8 18.4 5.8 6.0 6.1 1.4 Short Term 4.7 1.3 1.1 1.0 Bank Loans and Others 4.5 4.9 6.4 5.1 Available committed 1.4 Bonds 1.2 credit lines1 2021 2022 2023 2024 2025 After 2025
Slide 44: Balance sheet (€mn)
Q1 2021 consolidated results Balance sheet (€mn) Q1 2021 FY 2020 Δ Net financial debt 45,884 45,415 1.0% Shareholders' equity 44,708 42,357 5.6% Net capital employed 90,592 87,772 3.2% 43
Slide 45: Balance sheet structure (€bn)
Q1 2021 consolidated results Balance sheet structure (€bn) Net fixed assets 106 9.8 0.8 0.6 (6.9) 95.4 (9.1) 90.6 44.7 45.9 Assets WIP (tangible Equity NWC Provisions Assets held Net capital Equity Net Debt & intangible) Investment for sale employed Net debt / Net capital employed 51% 44
Slide 46: Headcount
Q1 2021 consolidated results Headcount 0 Q1 2021 FY 2020 ∆ 1 Generation and Trading 8,080 8,142 -1% Enel Green Power 8,432 8,298 2% Distribution 34,006 34,332 -1% Retail 6,197 6,324 -2% Enel X 3,082 2,989 3% Others and adjustments 6,641 6,632 0% Total 66,438 66,717 0% 45
Slide 47: Disclaimer
Q1 2021 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 48: Contact us
Q1 2021 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 Federica Dori Matteo Marengon Federica Pozzi Channel