Enel Spa · MIL:ENEL
Enel Spa — Investor Presentation (March 2024)
113 slides from Enel Spa's investor presentation, Mar 21, 2024
Slide 1: Investor Presentation 2024
Cre l Investor Presentation 2024
Slide 2: Agenda
Agenda CMD 2023 The Group in the energy context 2024-26 Strategic Plan 2024-26 Strategic Plan The Group in the next three years Capital allocation and EBITDA growth Efficiencies, streamlining & cash flow generation 2024-26 The financial plan Strategic Plan Net Income growth Targets Full Year 2023 co
Slide 3: The Group in the energy context
The Group in the energy context
Slide 4: A rapidly changing macro environment with hawkish monetary policies
A rapidly changing macro environment with hawkish monetary policies to address inflationary trends… Interest Rates1 Headline CPI2 (%) 2024 GDP growth3 (%) Eurozone US Changes occurred globally 5.4% 2.6 5.6% in the macro 0.1% 1.7 4.5% 1.2% 1.3 1.5 scenario... 0.0% 4.1% 1.2 0.7 0.3% 2020 2021 2022 202
Slide 5: Temporary setback in some trends in the short-term
…have caused a temporary setback in some trends in the short-term… Electricity demand Commodities’ volatility Renewables’ costs GDP growth slowdown Geo-political uncertainties have Inflationary pressures and higher has been curbing power spurred gas price volatility, which interest rates have caused
Slide 6: Not impacting the medium-term direction
…though not impacting the medium-term direction… Electricity demand Power prices Renewables’ penetration Changes in households’ energy Tightness in reserve margins Need of clean energy independence consumption behaviors will drive an will continue to weigh on power and regulatory pressure drive the
Slide 7: Triggering long-term trends emerging stronger
…triggering long-term trends emerging stronger… Need for distributed energy Need for systems flexibility Need for RES at adequate returns connections The increase of renewables in the Increased role of battery storage to Increase in LCOE calls for adequate energy mix will strengthen the tackle renew
Slide 8: Reassessment of our key business drivers
…leading to a reassessment of our key business drivers Regulated business Emission-free generation Sales to customers Increase investments in grids to Select investments based on a Maximize value of our large improve quality, resiliency and to weighted risk-reward matrix customers’ portfolio accommo
Slide 9: 2024-26 Strategic Plan
2024-26 Strategic Plan ene
Slide 10: The strategic pillars
The strategic pillars allocation Profitability, Selective capital allocation to maximize risk- Capital 1 flexibility and return profile while enhancing flexibility and A value driven resiliency resiliency of the Group sustainable business model operations Cost discipline, leaner organization and pro
Slide 11: Enel's key drivers of capital allocation
1 2 3 Enel’s key drivers of capital allocation… Geographical positioning Europe Focus on the infrastructure enabling the energy 1.8 €bn p.a. transition CAPEX OPTIMIZATION Networks Latam Investments deployed on visible and remunerative regulatory frameworks North America 13.7 Europe 11.9 Limit invest
Slide 12: Designed to minimize the impact on debt
1 2 3 …are designed to minimize the impact on debt… Gross capex: Old plan vs New Plan (€bn) 2024-26 Plan: from gross capex to net capex (€bn) (1.6) (9.6) 40.00 40. 0 37.4 35.00 35. 0 30.00 35.8 30. 0 35.8 (6.1) 25.00 25. 0 (3.5) 26.2 20.00 20. 0 Enel stake > 50%: 15.00 15. 0 lower risks and 10.00 10
Slide 13: Improving returns and their predictability
1 2 3 …improving returns and their predictability Cumulated gross capex (€bn) Grids1 2024-26 Plan vs 2021-23 Pro Forma Capital allocation Generation 1.20 4%5% 1.00 By GBL RoW 0.80 Blended regulated 0.60 Networks +4.0 0.40 ~75% ~80% return2: 7.5% in 2024-26, Europe 0.20 +80 bps vs 2021-23 30% 2024-26
Slide 14: Grids investments supported by adequate profitability
1 2 3 Grids investments to be supported by an adequate profitability Gross capex RAB1 (€bn) Key Drivers Quality, Regulatory Advocacy Resiliency & +5% Leverage on regulatory frameworks Digitalisation that grant an appropriate 50% remuneration to investments 55.00 50.00 ~43 ~45 45.00 Quality 2024-26 4
Slide 15: Renewables investments selected only if value accretive
1 2 3 Renewables investments to be selected only if value accretive Gross capex Capacity evolution2 (GW) Key Drivers Maintenance @2026 vs Reduction of LCOE capex 2025 Old Continuous optimization of unitary 63 Plan3 capex and opex 13% 52 4 ~11 12% 37% 2 15 48% Risk-reward profile improvements 2024-26
Slide 16: Customers investments to maximise clients' engagement
1 2 3 Customers investments to maximise clients’ engagement and satisfaction Gross capex Commercial proposition Key Drivers Geographical rebalancing: focus on Italy, Iberia and Latam Smart City Lighting Customer centricity: single touch point for B2C and SMEs; Key account 33% manager for Top & Large
Slide 17: Solid cash generation covering investments and dividends
1 2 3 A solid cash generation able to cover investments and dividends… FCF before dividends (€bn) 2024-26 FFO allocation (€bn) 50. 0 +7.6 €bn vs 45. 0 avg. of last 40. 0 43.8 3 years 35. 0 30. 0 (26.2) 5.8 25. 0 20. 0 1.3 (1.3) 15. 0 (5.4) 10. 0 5.0 Neutral 0.0 FCF 2021 2022 2023 2024-26 FFO Net cap
Slide 18: Renewed focus on addressable cash costs
1 2 3 …supported by a renewed focus on addressable cash costs Evolution of cash cost baseline (€bn) Efficiencies for c.1 €bn over 2022-26 2026 addressable Main drivers: cash cost baseline2 ▪ Organization streamlining to increase accountability Capex 20.0 18.0 17.7 ▪ Optimized mix of insourcing (valu
Slide 19: Financial sustainability
1 2 3 Financial sustainability FFO/Net Debt Net debt/EBITDA Credit ratios improving steadily +14 pp throughout the plan 2023 28% 2023 Solid cash flow generation 2.4x Pro Forma1 Pro Forma1 with flat net debt after 3.1x investment plan and dividend 29% ~26% payments 2.4x- ~2.3x 2.5x 15% Continued de-r
Slide 20: Environmental sustainability
1 2 3 Environmental sustainability Total absolute emissions (MtCO2eq) 200 2027 -50% 180 190 -30% -68% -99% -100% 160 Exit from coal power generation 140 120 100 128 80 ~95 2040 60 Net Our 60 100% renewable power generation 40 Zero ambition 20 and sales and exit from gas retail 0 <2.5 0 1 2017 2022 2
Slide 21: The Group in the next three years
The Group in the next three years
Slide 22: A strong operating positioning in 2026
A strong operating positioning in 2026… 2023 2026 Enhancing grids’ quality Electricity distributed1 (TWh) 450 466 and resiliency amidst supportive and visible regulatory frameworks SAIDI1 (min) 169 161 A growing renewable RES Capacity2 (GW) 63 73 platform centered on flexibility and profitability CO
Slide 23: Reflected into our Plan's targets
…reflected into our Plan’s targets Ordinary EBITDA (€bn) Ordinary Net Income (€bn) Net Debt/EBITDA ~5%1 ~6%1 CAGR 23-26 CAGR 23-26 2023 2023 2.4x 2023 6.3 Pro forma 21.2 Baseline Baseline 23.6-24.3 7.1-7.3 2.4x-2.5x ~2.3x 20.0-21.0 5.8-6.1 2023E 2026 2023E 2026 2023E Pro 2026 Baseline into Baseline
Slide 24: Appealing and sustainable shareholders' remuneration
Strong commitment to maintain an appealing and sustainable shareholders’ remuneration Dividend policy Total Shareholder Return up-to 70% pay-out if cash flows neutrality is achieved ~16% 8% ~12% Dividend 7% FLOOR Yield1 ~8% 0.43 0.43 0.43 0.43 Earnings ~5% CAGR 2023 2024 2025 2026 Minimum Maximum 23
Slide 25: Capital allocation and EBITDA growth
Capital allocation and EBITDA growth
Slide 26: Capital allocation by country/business matrix
1 2 3 Capital allocation optimized based on a country/business matrix approach… Integration Grids Generation Customers stage Need to accelerate grid upgrades Fully integrated business model Fully liberalized retail market Investments supported by higher Renewables growth natural hedge Bundled commer
Slide 27: Rebalancing results: EBITDA from Europe >70%
1 2 3 …rebalancing results to maximize profitability and cash generated: EBITDA from Europe >70% Capex EBITDA (€bn) 1.2 1.0 0.8 Shift of capital 2020-22 ~45% Latam & 0.6 allocation from 37.8 €bn North America 0.4 GW expansion to ~35% risk- weighted 0.2 ~30% 0.0 2019 2023 EBITDA +17% North conversion
Slide 28: Grids: key drivers of value creation
1 2 3 Grids: key drivers of value creation Italy Spain Latam Capex recognition N+1 Capex recognition N+2 Capex recognition: beginning of the Connections: 65% upfront 35% in RAB Connections: 85% upfront 15% in RAB following cycle in Brazil & Chile. No time Yearly inflation adjustment lag in Colombia
Slide 29: Grids: EBITDA evolution
1 2 3 Grids: EBITDA evolution EBITDA evolution (€bn) 2023 2026 CAGR 2023-26 EBITDA/ Grids Customer (€/cl) 112 125 4.3% RAB/ 9.0 648 669 0.2 Grids Customer (€/cl) 8.5 0.4 0.2 2023 8.4 8.0 7.3 Baseline 0.2 Increased Cash Cost allocation 7.5 7.0 7.4 on Networks supports EBITDA 6.5 expansion 6.0 Key Reg
Slide 30: Renewables: key drivers of value creation
1 2 3 Renewables: key drivers of value creation Europe Latin America North America Repowering aimed at improving Risk weighted RES development Priority shifted from size to cash sourcing mix and opportunistic PPA sourcing generation on the entire asset Operational control of BESS projects Sales heav
Slide 31: New capacity: different business models
1 2 3 New capacity: different business models to enhance returns and expand optionality ENEL STAKE 100% Ownership Net debt impact New capacity1 Capex1 (€bn) IRR-WACC Full control of assets Higher and hedged returns 4.5 GW 4.5 ~300 bps Mostly in Europe >50% Partnership Net debt impact New capacity Ca
Slide 32: Pipeline size and maturity enable low-risk growth
1 2 3 Pipeline size and maturity enable a low-risk and profitable growth 2024-26 renewables growth: addressed share vs pipeline (GW) 2024-26 Mature Pipeline/ Focus on mature projects with ~10x 30. 0 Capacity to be addressed ~160 GW higher investment return and full eligibility in terms of hedging/ri
Slide 33: Integrated business: key drivers of value creation
1 2 3 Integrated business: key drivers of value creation Europe Latin America North America Increased renewables production Sales fully hedged and lock-in of Financial sustainability of to improve cost of sourcing profitability of existing portfolio renewables segment as key priority Optimized custo
Slide 34: Integrated business: key drivers (cont'd)
1 2 3 Integrated business: key drivers of value creation (cont’d) Margin drivers Spot price Fixed sales Fixed sales Total sales (€/MWh) coverage mix mix -9% +20pp >50% ~34% 140.0 80.0 130.0 70.0 Italy 2026 2026 120.0 60.0 110.0 50.0 +7 pp 34 TWh 77 TWh 100.0 ~70% vs 2023 40.0 90.0 127 115 +5 pp ~50%
Slide 35: Integrated business: EBITDA evolution
1 2 3 Integrated business: EBITDA evolution EBITDA evolution (€bn) RENEWABLES Growing EBITDA contribution driven by increasing CAGR 2023-26 weight of renewable capacity 3.5% FROM CONVENTIONAL GENERATION… Normalization of commodity market reduces 19. 0 ~3 portfolio exposure and trading opportunities.
Slide 36: Efficiencies, streamlining & cash flow generation
Efficiencies, streamlining & cash flow generation
Slide 37: Efficiency to balance increase in cost of capital
1 2 3 Efficiency as a binding attitude to balance increase in cost of capital Opex/Customer2 (€/cl) Grids 20.0 17.7 ~40 1.2 €bn cost reduction 18.0 ~35 Growth 16.0 3.8 2022 2026 1 €bn cost efficiencies or ~15% reduction on addressable cost 14.0 Opex/MW2 (€/MW) baseline 12.0 Generation Regulated Addi
Slide 38: Over-delivering on a re-engineered disposal plan
1 2 3 Over-delivering on a re-engineered disposal plan… From a deleverage based …to a value driven portfolio disposal plan... rotation Net Debt impact (€bn) 2023 M&A 14. 0 almost in line 12. 0 1.3x with old plan 12.2 ~11.5 10. 0 (3.2) 9.5 >2 assumptions, 1.3 8.0 (1.5) over-delivering 8.2 6.0 7.5 tha
Slide 39: Sound progress on M&A
1 2 3 …with sound progresses on M&A Advanced stage Closed Signed of negotiation Exit from Romania Perù generation RES Partnership Exit from Argentina (Gx) Perù distribution & supply RES Asset Rotation JV in Australia Partnership: BESS and OCGT c.400 MW PV assets in Chile Assets swap/rotation: sale o
Slide 40: The financial plan
The financial plan ene
Slide 41: Reducing cost and risk profile of gross debt
1 2 3 Reducing cost and risk profile of our gross debt… 2026 Gross debt structure Cost of debt evolution Net financial expenses on 3.0 2.7 2.6 2.5 25% debt1 (€bn) Floating ~70% 4.0% 3.8% sustainable Fixed 75% 2023 2024 2025 2026 Amount Expected Debt refinancing Latam 9.5% (€bn) cost1 USD 5.6% ~90% ~
Slide 42: Cost-effective solid liquidity position
1 2 3 …and a cost-effective solid liquidity position to minimize exposure to market volatility Liquidity available1 LT Debt maturity by year (€bn) LT Maturities/ 12% 11% 13% Gross Debt Cash 30.0 Short term flexibility thanks to M&A cash-in coupled with low 6.9 25.0 25.1 refinancing needs (H1 2024).
Slide 43: Net Income growth
Net Income growth ene
Slide 44: Net Ordinary Income
Net Ordinary Income Group net ordinary income evolution (€bn) CAGR1 ~6% Sound EBITDA 10. 0 growth ~3 0.3 2023 9.0 6.3 drives earnings Baseline 8.0 7.0 (0.7) (0.6) evolution, 6.0 (0.6) 7.1-7.3 5.0 5.8-6.1 2023-2026 Net income CAGR 4.0 3.0 2.0 1.0 ~6% 0.0 2023E EBITDA D&A Financial Taxes Minorities 20
Slide 45: Targets
Targets ene
Slide 46: Plan's targets: focus on 2024
Plan’s targets: focus on 2024 Ordinary EBITDA (€bn) Ordinary Net Income (€bn) Net Debt/EBITDA Pro-forma Net debt (€bn) +101% +131% ~53.5 2023 2023 23.6-24.3 2023 7.1-7.3 2.4x 21.2 Baseline 6.3 Pro-forma Baseline 22.1-22.8 6.6-6.8 2.4x- 20.0-21.0 5.8-6.1 ~2.4 2.5x ~2.3x 2023 2024 2026 2023 2024 2026
Slide 47: Closing remarks
Closing remarks ene
Slide 48: Enel will continue to innovate
A glimpse on the future This gravity-powered battery could be the future of energy storage The Architect’s Newspaper Enel will Space-based solar power is a possible alternative energy source continue to The New York Times innovate, Only genuinely clean hydrogen can help solve the climate crisis moni
Slide 49: Full Year 2023 Consolidated results
FullFull YearYear 2023 2023 ConsolidatedConsolidated results results March 21st, 2024 March 21st, 2024
Slide 50: Full Year 2023 Consolidated results
Full Year 2023 Consolidated results Flavio Cattaneo CEO
Slide 51: Opening remarks
Opening remarks Strong YoY delivery with Evolution of Disposal Plan almost Shareholder financials up by regulatory completed (>90%) at better multiples return: double digit and frameworks 0.43 €/sh outstanding FFO points to upside M&A to maximize portfolio returns DPS for 2023 improvement on plan de
Slide 52: Strong 2023 financial delivery
Strong 2023 financial delivery bodes well for future targets EBITDA1,2 (€bn) Net Income1 (€bn) FFO (€bn) +12% +63% +21% +3 €bn vs 2021 peak +2.3 +1.1 22.0 6.5 +5.7 19.7 14.8 5.4 9.1 2022 2023 2022 2023 2022 2023 1. Ordinary figures. 2. It excludes extraordinary items in FY 2022 (235 €mn: Energy tran
Slide 53: Selective capital allocation drives operating growth
Selective capital allocation drives operating growth and safeguards profitability Strategic pillars Gross capex (€bn) By geography By GBL Profitability, -4% -4% >50% capex 1 flexibility and resiliency 16.0 14.2 13.6 16.0 14.2 13.6 on “regulated” 14.0 14.0 12.0 12.0 assets, 10.0 8.0 10.0 8.0 51% incr
Slide 54: Positive outcomes from advocacy activity in grids
Positive outcomes from our advocacy activity to support investments in grids Grids ROSS implementation confirm a supportive framework in line with plan’s ambitions Ad hoc remuneration (ARERA 617/2023) defined for special projects focused on grids’ upgrades (resiliency, hosting capacity): up to 13% o
Slide 55: Partnership business model: capital light strategy
Partnership business model: a staple of our capital light strategy Strategic pillars BUSINESS MODELS ENEL STAKE First initiative under the partnership 100% Ownership business model Profitability, Full control of assets 1 flexibility and resiliency Higher and hedged returns Mostly in Europe Sale of 4
Slide 56: Delivering on a cost disciplined organization
Delivering on a cost disciplined organization Strategic pillars Cash generation Cash cost reduction FFO (€bn) Addressable cost base1 (€bn) Profitability, +63% -200 €mn 1 flexibility and resiliency 16.00 7.00 6.80 14.00 12.00 14.8 6.60 6.9 6.40 6.7 47% 10.00 6.20 53% 200 €mn 8.00 6.00 Efficiency and
Slide 57: M&A: from deleverage to structural value creation
M&A: from deleverage to structural value creation Strategic pillars M&A delivery: Net Debt impact Profitability, €bn Completion of 1 flexibility and resiliency M&A Plan Closed 3.4 allows strategic shift ~11.5 €bn Signed 7.0 Efficiency and to maximize 2 effectiveness investments Advanced ~1.0 and por
Slide 58: Improved credit ratios and environmental trajectory
Improved credit ratios and confirmed environmental trajectory Strategic pillars Financial sustainability Environmental sustainability FFO/Net Debt Net Debt/EBITDA Total absolute emissions (MtCO2eq) Profitability, 1 flexibility and resiliency +10 pp -50% 200 180 160 190 Efficiency and 2 effectiveness
Slide 59: Shareholder remuneration
Shareholder remuneration Dividend per share (€/share) Visible 0.215 €/sh Interim DPS paid shareholder in Jan ‘24 up-to 70% pay-out remuneration with upside 0.43 potential FLOOR 0.43 0.43 0.43 linked to cash flow 2023 2024 2025 2026 neutrality 58
Slide 60: Economic and financial results
Full Year 2023 Economic and financial results Stefano De Angelis CFO
Slide 61: H2 and YTD execution backing CMD ambitions
H2 and YTD execution backing CMD ambitions Profitability, flexibility Efficiency & Financial sustainability and resiliency Effectiveness c. 700 MW approved at 300+ New spending review and New 1.75 €bn SLB issued at bps spread over WACC in Q4 approval process set in H2 (200 3.66% avg. coupon vs 4% co
Slide 62: EBITDA up double digit
EBITDA up double digit driven by a strong underlying performance Ordinary EBITDA evolution (€bn) EBITDA by geography2 FY 2022 FY 2023 +12% 24. 000 22.0 22. 000 34% 33% 19.7 38% 20. 000 0.3 2.8 49% 0.5 19.7 €bn 22.0 €bn 18. 000 (0.3) 16. 000 14. 000 19.2 18% 67% +15% 28% 0.8 12. 000 0.5 Europe 10. 00
Slide 63: EBITDA baseline into 2024
EBITDA baseline into 2024 in line with CMD ambitions Ordinary EBITDA evolution (€bn) Ordinary Net Income evolution (€bn) 22.0 21.23 6.5 0.5 0.2 6.3 (0.5) (0.8) (0.2) (0.3) 14.2 7.3 Ordinary Grids1 Integrated Gas Baseline into Ordinary Grids1 Integrated Gas Baseline into EBITDA business2 arbitration
Slide 64: Grids: +5% RAB increase
Grids: +5% RAB increase supporting 2024-26 ambitions Ordinary EBITDA evolution (€bn) RAB2 (€bn) -5% +2.1 50.00 44.4 2024-26 capex 45.00 42.3 8.3 3.6 €bn 9.0 00 0.3 0.1 7.9 40.00 8.0 00 0.3 10.9 11.8 35.00 7.0 00 (0.5) 30.00 6.0 00 8.0 25.00 5.0 00 20.00 31.4 32.6 STABLE 2024-26 capex 0.5 4.0 00 15.0
Slide 65: Integrated business: double digit growth
Integrated business: double digit growth yoy Ordinary EBITDA evolution (€bn) 100% of RES production backed by fixed sales to B2C and SMEs, maximizing unitary +24% integrated margin 17. 000 Pre-hedging securing forward generation 15. 000 14.4 margins from backward trend (>90% of 2024-2025 production)
Slide 66: Net Ordinary Income up by more than 20%
Strong earnings performance: Net Ordinary Income up by more than 20% versus PY Profit & loss (€bn) Key Drivers FY 2023 FY 2022 ∆ yoy Financial expenses Financial charges strongly Ordinary EBITDA 22.0 19.7 +12% affected by negative interest rates environment and short- term exposure D&A and Provision
Slide 67: FFO at around 15 €bn
Cash generation accelerated in H2 2023: FFO at around 15 €bn FY FY H1 2023 H2 2023 2023 2022 Ordinary Ordinary EBITDA 10.7 EBITDA 11.3 22.0 19.7 Significant FFO improvement ∆ Provisions1 ∆ (Provisions 0.1 ) ( 1.2 ) (1.3) (2.0) thanks to better economic result and ∆NWC & Other ∆NWC ( 2.0 ) & Other 2.
Slide 68: Pro Forma Net Debt at around 53.5 €bn
Pro Forma Net Debt at around 53.5 €bn Net debt evolution1 (€bn) 0.3 €bn US solar & geothermal cashed-in after Dec. 31st,2023 60.7 0.3 60.2 Hybrids 1.0 0.3 (3.5) 5.3 6.3 (14.8) 13.2 GRANTS ~53.5 FFO-Capex +1.6 €bn 59.9 59.7 2 Dec. 31, 2022 FFO Net Capex3 APM Dividend paid FX & other Dec. 31, 2023 Dea
Slide 69: Closing remarks
Full Year 2023 Closing remarks
Slide 70: Closing remarks
Closing remarks 1 2 3 4 Focus on financial Strong Close to 2024-26 sustainability to operating and complete guidance fully drive upside in financial M&A plan confirmed shareholder delivery remuneration 69
Slide 71: 2024-26 selected figures
ere 2024-26 selected figures
Slide 72: Macroscenario
Macroscenario ene
Slide 73: GDP, CPI and FX
GDP, CPI and FX 1 GDP (% ) CPI (% ) FX against € 2024 2025 2026 2024 2025 2026 2024 2025 2026 Italy 0.8 0.9 0.8 2.5 2.0 2.0 n.m n.m n.m Iberia 1.5 1.9 1.9 2.7 1.9 1.9 n.m n.m n.m Latin America Brazil 1.5 2.5 2.3 4.2 3.9 3.8 5.6 5.8 5.8 Chile 1.8 2.4 2.5 3.8 2.8 2.5 918.0 942.0 959.0 Colombia 1.8 2.7
Slide 74: Commodities' prices
Commodities’ prices 2024 2025 2026 Power price - Italy (€/MWh) 145.0 131.0 115.0 Power price - Spain (€/MWh) 106.0 88.0 74.0 Gas TTF (€/MWh) 50.3 44.0 34.9 Gas Henry Hub ($/mmbtu) 3.7 4.0 4.3 Gas PSV (€/MWh) 49.7 43.9 35.6 Oil Brent ($/bbl) 84.0 81.0 75.0 Coal API2 ($/ton) 118.5 112.8 102.4 CO2 (€/t
Slide 75: Renewables
Renewables ene
Slide 76: Renewable share and additional capacity
Renewable share and additional capacity RES share capacity1 2024-26 Renewables additional capacity By business model By technology By geography 0.8 0.7 16% 18% 74% 53% 31% 26% 0.6 0.5 68% 0.4 13.4 GW 13.4 GW 13.4 GW 26% 58% 29% 0.3 0.2 2% 0.1 19% 22% 0 2023 2026 Ownership Italy Latin America Partner
Slide 77: Pipeline
Pipeline Renewables Pipeline (GW) 2024-26 Additional capacity target2 ~437 83 218 6.3 13.4 GW 7.1 130 6.3 Gross Pipeline BESS 1 Early stage Mature In execution Capacity in execution Residual target 1. It includes BESS for around 54 GW in early stage and around 29 GW in mature pipeline 76 2. It inclu
Slide 78: Mature pipeline
Mature pipeline1 By technology By geography By COD 3% 10% 11% 1% 11% 5% 31% 15% 130 GW 22% 130 GW 130 GW 66% 38% 88% Wind Italy North America 2024 Solar Iberia Rest of Europe 2025 Hydro & Other Latin America Africa, Asia & Oceania >2025 77 1, It excludes BESS mature pipeline
Slide 79: Grids
Grids ene
Slide 80: Grids: current regulatory framework
Grids: current regulatory framework1 Italy Iberia Brazil Chile Colombia WACC real 6.0% 5.6%3 11.2% 7.0%4 12.1% pre tax 2024 Next Regulatory 20282 2026 2027 2024 2025 Period 5 (Rio) Regulatory Period 4+4 6 4 (São 4 5 Length (years) Paulo/Ceara) Metering Owned by Owned by Owned by Owned by Owned by Ow
Slide 81: Customers
Customers ene
Slide 82: Power & Gas: customers and volumes
Power & Gas: customers and volumes1 Italy Iberia2 Customer (mn) Volumes (TWh) Customer (mn) Volumes (TWh) 20 18.6 87.2 12 10.5 10.8 100 77.7 82.6 100 18 90 12.8 76.5 10 3.2 8.3 6.9 16 80 14 80 12.0 8 3.6 70 7.5 Power 12 60 60 10 6 50 70.2 74.3 8 40 6 11.7 40 75.2 4 6.9 7.6 30 4 20 20 2 2 10 0 0 0 0
Slide 83: Italian power market
Italian power market1 Customers (mn) Energy sold (TWh) Enel Enel market share market share 29.1 37.3 257.2 274.1 7.1 7.1 29% 208.1 208.9 27% 22.0 30.2 44% 16.9 8.2 0.8 49.1 65.2 44% 16.1 Regulated Free Total 2 Regulated Free Total 3 Enel Enel 84% 40% 78% 31% market share market share Business Reside
Slide 84: Spanish power market
Spanish power market Customers (mn) Energy sold (TWh) Enel Enel market share1 market share2 21.4 30.1 224.3 244.7 0.9 0.9 24% 151.1 152.1 20.5 31% 29.2 29% 8.7 0.0 8.7 20.4 73.2 92.6 30% 1.0 19.4 Regulated Free Total Regulated Free Total Enel Enel market share 43% 29% market share 44% 31% Business R
Slide 85: Financials
Financials ene
Slide 86: Net capex 26.2 €bn
2024-26 Cumulated Gross Capex1 By GBL By geography 53% Grids 49% Italy Retail Iberia 35.83 €bn Conventional generation 35.83 €bn 25% Latin America Enel X2 Rest of Europe 34% 3% Renewables North America 5% 7% 5% 19% Net capex 26.2 €bn 85 1. Rounded figures; 2. It includes Enel X Way. 3. Other is not
Slide 87: Group Ordinary EBITDA: focus on grids
Group Ordinary EBITDA1: focus on grids By GBL2 (€bn) Focus on grids 23.6 - 24.3 Latin America 21.2 20.0-21.0 Italy 26% 14.2 15.5 14.0 51% 2026 8.4 €bn 7.4 8.4 23% 7.3 2023 Baseline 2023E baseline 2026 Iberia into 2024 into 2024 86 1. Rounded figures. 2. Other is not included in the breakdown
Slide 88: Group Ordinary EBITDA: focus on integrated business
Group Ordinary EBITDA1: focus on integrated business By GBL2 (€bn) Focus on integrated business 23.6 - 24.3 RoW 21.2 20.0-21.0 29% 14.2 15.5 14.0 2026 15.5 €bn 71% 7.3 7.4 8.4 Europe 2023 Baseline 2023E baseline 2026 into 2024 into 2024 87 1. Rounded figures. 2. Other is not included in the breakdow
Slide 89: FY 2023 Consolidated results Annexes
FY 2023 Consolidated results Annexes
Slide 90: Update on M&A plan
Update on M&A plan Net Debt impact Amount (€bn) Year Sale of Argentina generation1 0.1 2023 Exit from Romania1 2.1 2023 Deals Sale of 50% stake in Australia1 0.1 2023 closed Sale of PV Assets in Chile 0.5 2023 Sale of 50% stake in EGP Hellas 0.3 2023 Sale 150 MW of solar and geothermal capacity 0.3
Slide 91: Macroscenario
FY 2023 consolidated results Macroscenario GDP (%) CPI (%) FX against €1 Spot Price (€/MWh) 1 Electricity Demand (TWh) FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 Italy 0.72 3.89 6.03 8.72 - - 127.24 304.02 306.09 315.01 Iberia 2.50 5.77 3.43 8.34 - - 87.43 167.66
Slide 92: Group consolidated net capacity
FY 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 12,998 874 776 237 - 2,378 4,160 4,607 26,030 Iberia 4,746 2,884 - 2,269 3,328 2,333 241 5,445 21,247 Rest of World 10,596 1
Slide 93: Group consolidated net production
FY 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 15,270 1,430 5,310 88 - 200 9,368 10,935 42,601 Iberia 5,083 6,392 - 2,737 24,865 4,505 742 15,939 60,264 Rest of World 4
Slide 94: Group total additional capacity
FY 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 1 13 - 186 - 130 - 11 341 Iberia - 1 - 605 - - - - 607 Rest of World 3 1,138 - 2,085 - 34 - 54 3,313 Latin America 3 1,102
Slide 95: Renewable projects in execution
FY 2023 consolidated results Renewable projects in execution: breakdown by technology and geography1 Solar & MW Wind Hydro Geothermal BESS Total Other Italy - 3.9 - 223 1,572 1,798 Iberia 9 10 - 1,441 5 1,465 Rest of World 630 156 - 1,996 283 3,065 Latin America 194 156 - 755 168 1,273 North America
Slide 96: Enel Grids KPIs
FY 2023 consolidated results Enel Grids KPIs1 Electricity distributed 2 Grid customers (mn) Smart meters (mn) FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 Italy 214.1 220.4 31.8 31.7 31.7 31.6 Iberia 136.4 131.7 12.5 12.5 12.4 12.3 Rest of World 138.8 155.5 25.9 28.5 1.1 2.0 Latin America 126.2 1
Slide 97: Retail KPIs
FY 2023 consolidated results Enel X Global Retail: Retail KPIs1 Power Gas Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc) FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 Italy 18.6 21.4 87.2 97.2 4.3 4.6 4.1 4.7 Iberia 10.5 10.5 77.7 79.0 1.8 1.8 3.8 4.9 Rest of World 25.9
Slide 98: Enel X KPIs
FY 2023 consolidated results Enel X Global Retail: Enel X Enel X Public Charging points (k) Street lighting (mn) Storage (MW) Demand Response (GW) FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 Italy 19.1 18.3 1.6 1.6 - - 0.8 0.6 Iberia 5.5 3.7 0.1 0.1 - - 0.2 0.2 Rest of World 0.7
Slide 99: Capex
FY 2023 consolidated results Capex1 (€mn) Global Generation 2 Services Enel Grids Renewable Energies Enel X Global Retail Total & Trading & Other FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 Italy 393 408 3,084 2,714 1,982 821 565 582 74 115 6,098 4
Slide 100: Asset development Capex
FY 2023 consolidated results Asset development Capex1 (€mn) Global Generation 2 Services Enel Grids Renewable Energies Enel X Global Retail Total & Trading & Other FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 Italy 300 316 1,471 1,318 1,780 632 138
Slide 101: Revenues
FY 2023 consolidated results Revenues1 (€mn) Global Generation 2 Services Enel Grids Renewable Energies Enel X Global Retail Total & Trading & Other FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 Italy 26,178 55,389 7,610 6,963 3,248 2,149 28,717 33,3
Slide 102: Reported EBITDA
FY 2023 consolidated results Reported EBITDA1 (€mn) Global Generation 2 Services Enel Grids Renewable Energies Enel X Global Retail Total & Trading & Other FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 Italy 2,552 2,578 3,566 3,676 555 (564) 4,039 52
Slide 103: Ordinary EBITDA
FY 2023 consolidated results Ordinary EBITDA1 (€mn) Global Generation 2 Services Enel Grids Renewable Energies Enel X Global Retail Total & Trading & Other FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 Italy 2,718 2,735 3,589 3,707 555 (562) 4,039 53
Slide 104: Reported EBIT
FY 2023 consolidated results Reported EBIT1 (€mn) Global Generation 2 Services Enel Grids Renewable Energies Enel X Global Retail 2 Total & Trading & Other FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 Italy 2,351 2,424 2,116 2,326 200 (885) 2,987 (6
Slide 105: From EBITDA to net income
FY 2023 consolidated results From EBITDA to net income1 (€mn) FY 2023 FY 2022 FY 2023 FY 2022 ∆ yoy ∆ yoy reported reported ordinary ordinary EBITDA 20,255 19,918 1.7% 21,969 19,683 11.6% D&A (9,423) (8,725) (7,927) (7,554) EBIT 10,832 11,193 -3.2% 14,042 12,129 15.8% Net financial charges (3,375) (
Slide 106: D&A reported
FY 2023 consolidated results D&A reported1 (€mn) FY 2023 FY 2022 ∆ yoy Generation and Trading 887 1,312 -32.4% Enel Green Power 3,136 1,507 108.1% Grids 3,035 3,782 -19.8% 2 Enel X Global Retail 2,116 1,895 11.7% Others and adjustments 249 229 8.7% Total 9,423 8,725 8.0% 1. FY 2022 restated figure 1
Slide 107: Long-term debt structure
FY 2023 consolidated results Long-term debt1 structure By currency Interest rate Long term By currency After swap composition credit ratings 51% Rating Outlook 82% 18% S&P BBB Stable 70.9 €bn 3% 70.9 €bn 70.9 €bn Moody’s Baa1 Negative 7% 1% 4% 3% 3% 82% 1% 10% Fitch BBB+ Stable 35% EUR USD BRL Float
Slide 108: Debt structure by instrument
FY 2023 consolidated results Debt structure by instrument (€bn) 107
Slide 109: Debt maturity coverage split by typology
FY 2023 consolidated results Debt maturity coverage split by typology (€bn) Available liquidity 30.8 Bank Loans and Others Bonds 7.6 6.9 26.8 €bn 19.9 9.1 8.7 8.6 23.2 7.3 2.3 3.2 2.1 5.7 2.1 6.8 2.6 5.2 5.5 6.5 3.1 Available committed credit lines1 2024 2025 2026 2027 2028 After 2028 Cash 1. Of whi
Slide 110: Balance sheet
FY 2023 consolidated results Balance sheet (€mn) FY 2023 FY 2022 Δ Net financial debt 1 60,163 60,663 -0.8% Shareholders' equity 45,109 42,080 7.2% 1 Net capital employed 105,272 102,743 2.5% 1. FY 2022 restated figures 109
Slide 111: Headcount
FY 2023 consolidated results Headcount 1 FY 2023 FY 2022 ∆ yoy Generation and Trading 5,725 6,447 -11.2% Enel Green Power 8,891 9,397 -5.4% Distribution 30,946 30,262 2.3% 1 Enel X Global Retail 8,926 8,293 7.6% Others and adjustments 6,567 10,725 -38.8% Total 61,055 65,124 -6.2% 1. Enel X Global Re
Slide 112: Disclaimer
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 are based on Enel S.p.A.’s curr
Slide 113: 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