Slide 1: FY 2018 consolidated results
FY 2018 consolidated results March 21, 2019
Slide 2: Key highlights of the period
Key highlights of the period Continued exceptional delivery on renewables development Double digit increase in end users Further decline in operating costs Portfolio rotation and further simplification to accelerate growth and optimize risk profile Significant progresses on SDGs 4, 7 and 8 Ordinary
Slide 3: Financial targets delivery
Financial targets delivery 2018 2018 target 2017 ∆ YoY ✔ Ordinary EBITDA (€bn) 16.2 16.2 15.6 +4% ✔ Net ordinary income (€bn) 4.1 4.1 3.7 +9% ✔ Dividend per share (€) 0.28 0.28 0.237 +18% ✔ Net debt (€bn) 41.1 41-42 37.4 +10% ✔ FFO/Net debt 27% 26.5% 27% -% 2
Slide 4: Industrial growth: capex
Industrial growth: capex FY 2018 Gross capex1 FY 2018 Asset development capex by business and geography 5% 5% 4% 3% 10% 23% 45% 36% 8.5 €bn 34% 4.7 €bn 4.7 €bn 61% 11% 38% 2% 23% Networks Thermal Generation Renewables Italy Africa, Asia & Oceania Enel X Retail Networks Iberia South America Renewable
Slide 5: Continued delivery on renewables growth
Continued delivery on renewables growth Renewable capacity evolution 20181 (GW) Total Additional capacity of 3 GW mainly in capacity 40.9 43.4 North & Central America 0.4 1.7 Managed (0.4) 4.2 Asset rotation to maximize portfolio 2.6 capacity returns 2.7 2 (0.1) (1.7) Production up by 20% Consolidat
Slide 6: Group's decarbonization
Group’s decarbonization Share of renewables on total installed capacity1 (GW) Emission free share of production2 110 .0 45% emission free 51% emission free 87.5 89.8 90. 0 46.4 46.6 70. 0 -% 2017 2018 257 TWh 260 TWh 50. 0 43.4 30. 0 40.9 +6% 10. 0 2017 20184 2020 2030 -10.0 FY 2017 FY 2018 CO2 spec
Slide 7: Networks
Networks End users (mn) Smart meter1 (mn) +1.2 mn smart meters installed +11% +3% +5.1 mn meters 2.0 installed in Italy 45.0 0 75.0 0 44.5 0 Smart meters 2.0 (mn) 70.0 0 72.9 44.0 0 Eletropaulo: + 7 mn customers 65.0 0 43.5 0 43.8 Turnaround underway 65.5 43.0 0 42.5 0 60.0 0 42.0 0 42.6 55.0 0 41.5
Slide 8: Enel X
Enel X Infrastructure Customer services Demand response (GW) Storage (MW) 2017 2018 5.00 Public lighting 7.50 2.5 2.5 7.00 +9% 4.50 +50% (mn points) 6.50 4.00 3.50 6.00 +63% 5.50 6.2 3.00 5.00 5.7 2.50 3.0 Charging points1 (k) 30 49 4.50 2.00 2.0 1.50 4.00 1.00 3.50 > 2x 0.50 Fiber deployment 3.00 2
Slide 9: Driving efficiencies across all businesses
Driving efficiencies across all businesses 10.0 9.5 Opex evolution1 (€bn) Opex - main drivers (€mn) 9.0 -1% Growth 50 8.5 8.6 Perimeter and One-offs2 310 8.5 8.0 CPI & Forex3 (145) 7.5 Efficiency4 (315) 7.0 FY 2017 FY 2018 1. In nominal terms, rounded figures. Adjustments: FY 2017 excludes +45 €mn o
Slide 10: Portfolio management and simplification
Portfolio management and simplification Deals executed Recent transactions EGP Brazil Sale of 540MW 1 renewable assets Portfolio Enterprise value 700 €mn rotation EGP North America Acquisition of 650 MW from US JV Equity value of 256 US$mn Enel Americas Corporate Shares swap on 5% of Enel Americas s
Slide 11: Our commitment to SDGs – Communities & people
Our commitment to SDGs – Communities & people 20181 20301 High-quality, inclusive and fair education 1.0 2.5 Access to affordable and clean energy 6.3 10.0 Employment and sustainable & inclusive economic growth 1.8 8.0 20181 99% people Talent Appraise performance of people we appraised attraction &
Slide 12: Shareholder remuneration
Shareholder remuneration EPS (€/sh) DPS (€/sh) +68% >2x +18% +18% 0.35 0.47 0.30 0.40 0.25 0.33 0.20 0.28 0.28 0.15 0.10 0.16 0.05 0.00 2015 2018 2019 2015 2018 2019 Min. guaranteed 0.16 0.28 0.32 DPS 11
Slide 13: Financial results
FY 2018 consolidated results Financial results
Slide 14: Financial highlights (€mn)
Financial highlights (€mn) FY 2018 FY 2017 ∆ yoy Net of FX4 Revenues 75,672 74,639 +1% Reported EBITDA 16,351 15,653 +4% Ordinary EBITDA1 16,158 15,555 +4% +7% Reported EBIT 9,900 9,792 +1% Ordinary EBIT 9,793 9,736 +1% Reported Group net income 4,789 3,779 +27% Group net ordinary income2 4,060 3,70
Slide 15: Ordinary EBITDA evolution (€bn)
Ordinary EBITDA evolution (€bn) 20.0 0 EBITDA evolution1 (€ bn) € mn 19.0 0 18.0 0 +4% Growth in renewables and networks 1,000 Efficiency 315 17.0 0 16.0 0 16.2 Perimeter and One-offs2 20 15.0 0 15.6 14.0 0 FX3 (470) 13.0 0 Scenario and margins (265) 12.0 0 FY 2017 FY 2018 1. Rounded figures. 14 2.
Slide 16: Ordinary EBITDA by business line
Ordinary EBITDA by business line ∆ YoY Performance driven by growth and +12% volume/prices 2.9 7.6 Growth and efficiencies +3% 1.1 16.21 €bn Higher margins across all markets +20% 4.5 0.1 Focus on new infrastructures and services - Networks Enel X Renewables Thermal Generation Normalization of marke
Slide 17: Global Renewable energies
Global Renewable energies EBITDA evolution1 (€ bn) EBITDA FY 2018 by geography € mn +12% Growth 715 2% 4% 5.00 16% 25% Efficiency (40) 4.50 4.5 €bn 4.5 4.00 Perimeter and One-offs2 (100) 8% 4.1 3.50 45% FX (150) 3.00 Italy Africa, Asia & Oceania 2.50 Scenario and margins 60 Iberia South America FY 2
Slide 18: Global Infrastructure and networks
Global Infrastructure and networks EBITDA evolution1 (€bn) EBITDA FY 2018 by geography € mn +3% Growth 200 2% 25% 7.80 Efficiency 140 7.6 7.6 €bn 7.30 7.4 47% Perimeter and One-offs2 440 6.80 26% 6.30 FX (220) Italy South America 5.80 Scenario and margins (365) Iberia RoE FY 2017 FY 2018 1. Rounded
Slide 19: Retail
Retail EBITDA evolution1 (€bn) Free market - main KPIs 170 .00 € mn Volumes (TWh)4 165 .00 +20% -% 4.00 160 .00 3.50 Growth and margins 340 155 .00 2.9 150 .00 3.00 152 153 2.4 145 .00 2.50 0.7 Efficiency2 200 140 .00 2.00 0.5 135 .00 130 .00 1.50 Perimeter and One-offs3 (55) 125 .00 2.2 120 .00 1.0
Slide 20: From Ordinary EBITDA to Net Ordinary Income
From Ordinary EBITDA to Net Ordinary Income (6.4) 16.2 (2.3) (1.9) 9.8 (1.6) 7.5 4.1 Ordinary D&A EBIT Financial EBT Income Minorities Group EBITDA expenses taxes net ordinary & other 1 income PY 15.6 (5.8) 9.7 (2.7) 7.1 (1.9) (1.5) 3.7 Delta YoY +4% +9% +1% -14% +6% -% +5% +9% 1. Includes other fin
Slide 21: Cash flow (€bn)
Cash flow (€bn) 18.0 16.0 1.1 14.0 16.2 (2.6) (1.9) (1.7) 12.0 11.1 10.0 8.0 6.0 (8.5) 4.0 0.7 ( ) 3.3 2.0 - 1 3 4 Ordinary ∆ Provisions ∆Working Income Financial FFO Capex Build & sell FCF EBITDA capital taxes expenses 2 & other PY 15.6 (1.7) (0.5) (1.6) (1.7) 10.1 (8.5) 0.8 2.4 Delta YoY +4% +10%
Slide 22: Debt and financial expenses (€bn)
Debt and financial expenses (€bn) Gross and net debt Net debt evolution +9% 2.8 0.9 56.0 3.4 60 51.4 41.1 50 6.7 7.0 8.2 37.3 40 6.9 37,302 (3.3) 43,122 30 37,410 43,122 20 37.4 41.1 10 - FY 2017 FY 2018 Dec 31, 2017 FCF Dividends paid Active portfolio FX FY 2018 continuing management operations 1 N
Slide 23: Solid improvement in profitability, returns, and credit metrics
Solid improvement in profitability, returns, and credit metrics Profitability FFO/Net debt Long term credit rating +600bps +200 bps Rating Outlook 30% 30% S&P BBB+ Stable 27% 27% 25% 25% 24% 25% 25% 20% 20% Moody’s Baa2 Stable 15% 19% 15% 8.2% 8.7% 8.8% 10% 10% Fitch A- Stable 2015 2017 2018 2015 20
Slide 24: Closing remarks
Closing remarks Solid 2018 results support good prospects for future years Focus will be on organic development, efficiencies and simplification Strong commitment to SDGs to create sustainable value 2019 guidance, reiterated, underpins a yoy EPS and DPS growth of c. 18% 23
Slide 25: Annexes
FY 2018 consolidated results Annexes
Slide 26: Macroscenario
FY 2018 consolidated results Macroscenario GDP (%) CPI (%) FX against €1 Spot Price (€/MWh) Electricity Dem and (TWh) 2 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Italy 0.80 1.70 1.10 1.20 1.10 1.20 61.30 53.90 321.90 320.50 Iberia 2.50 3.00 1.70 2.00 1.10 1.20 5
Slide 27: Group total net installed capacity by technology and geography
FY 2018 consolidated results Group total net installed capacity1: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 12,411 772 763 65 - 516 6,340 6,758 27,624 Iberia 4,761 1,750 - 14 3,318 2,377 5,052 5,445 22,717 South America 10,031 1
Slide 28: Group total net production by technology and geography
FY 2018 consolidated results Group total net production1: breakdown by technology and geography Solar & GWh Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 18,395 1,289 5,667 125 - 481 20,698 6,578 53,232 Iberia 8,459 3,688 - 25 24,067 6,681 22,316 8,957 74,193 South America 36,136
Slide 29: Group total additional capacity by technology and geography
FY 2018 consolidated results Group total additional capacity1: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 10 - 1 - - - - - 11 Iberia 10 132 - - - - - - 141 South America 51 304 - 187 - - - - 542 Argentina - - - - - - - - - Brazil
Slide 30: Renewable projects in execution
FY 2018 consolidated results Renewable projects in execution: breakdown by technology and geography1,2 MW Wind Hydro Geothermal Solar Biomass Total Italy 8 34 10 - - 51 Iberia 561 7 - 339 - 907 South America 1,099 153 28 993 - 2,273 Rest of Europe 244 - - - - 244 North & Central America 897 - - 220
Slide 31: Global Renewable Energies gross pipeline
FY 2018 consolidated results Global Renewable Energies gross pipeline1 Pipeline by technology Pipeline by geography Pipeline by COD 2019 1% 2% 8% 1% 22% 5% >2021 31% 2020 20% 44% 19.8 GW 19.8 GW 19.8 GW 55% 44% 21% 6% 41% 2021 Wind Hydro Italy Rest of Europe Solar Geo Iberia North & Central America
Slide 32: Dx KPIs
FY 2018 consolidated results Dx KPIs Electricity distributed (TWh) End users (m n) Sm art m eters (m n) FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Italy 227.7 228.5 31.4 31.5 31.4 31.3 Iberia 124.7 126.4 12.2 12.1 11.6 10.9 South Am erica 117.4 90.7 26.5 19.1 0.4 0.2 A rgentina 17.5 17.7 2.5 2.
Slide 33: Retail KPIs
FY 2018 consolidated results Retail KPIs Power Gas Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc) FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Italy 25.2 26.1 104.3 103.2 4.1 4.0 4.8 4.8 Iberia 10.8 10.8 89.6 96.5 1.6 1.6 6.4 6.9 South America 25.8 18.2 91.1 74.7 0.0 -
Slide 34: Italian power market 2018
FY 2018 consolidated results Italian power market 2018 Customers (mn) Energy sold (TWh) Enel Enel Enel Enel market share1 17,3 market share2 36,9 market share1 237,8 market share2 289,1 4,3 40% 7,3 53% 12,9 25% 206,3 222,9 19,6 2,9 29,6 16,7 51,3 31,5 47% 16,6 66,2 34,8 Regulated Free Total Regulate
Slide 35: Spanish power market 2018
FY 2018 consolidated results Spanish power market 2018 Customers (mn) Energy sold (TWh) Enel Enel 18.5 market share1 29.8 236.3 market share1 269.1 0.9 1.2 32% 17.6 176.2 32% 178.4 30% 11.3 28.6 0.3 60.1 31% 11.0 32.8 90.7 2.2 30.6 Regulated 44% Free 30% Total Regulated 43% Free 31% Total Business R
Slide 36: Baseload power price & production sold forward
FY 2018 consolidated results Baseload power price & production sold forward Baseload price 2018 2019 Italy (€/MWh) 61.3 56.9 Iberia (€/MWh) 57.3 56.5 Production sold forw ard 2018 2019 2020 2021 price % price % price % price % 1 Italy (€/MWh) 46.0 100% 53.0 90% 58.7 25% - 0% 1 Iberia (€/MWh) 67.5 10
Slide 37: Gross Capex (€mn)
FY 2018 consolidated results Gross Capex1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Italy 172 115
Slide 38: Asset development Capex (€mn)
FY 2018 consolidated results Asset developement Capex1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017
Slide 39: Asset management Capex (€mn)
FY 2018 consolidated results Asset management Capex1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 It
Slide 40: Customers Capex (€mn)
FY 2018 consolidated results Customers Capex1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Italy - -
Slide 41: Revenues (€mn)
FY 2018 consolidated results Revenues1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Italy 19,044 19,
Slide 42: Reported EBITDA (€mn)
FY 2018 consolidated results Reported EBITDA1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Italy 22
Slide 43: Ordinary EBITDA (€mn)
FY 2018 consolidated results Ordinary EBITDA1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Italy 22
Slide 44: Reported EBIT (€mn)
FY 2018 consolidated results Reported EBIT1 (€mn) Global Generation Global Infrastructures Global Renew able Services Retail Enel X Total & Trading & Netw orNs Energies & Other FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Italy (247)
Slide 45: EBITDA from Reported to Adjusted: by geography
FY 2018 consolidated results EBITDA from Reported to Adjusted: breakdown by geography (€mn) North & Africa, South Rest of FY 2018 Italy Iberia Central Asia & Other Total America Europe America Oceania Reported 7,304 3,558 4,370 516 708 54 (159) 16,351 Extraordinary items 193 - - - - - - 193 Ordinary
Slide 46: EBITDA from Reported to Adjusted: by business line
FY 2018 consolidated results EBITDA from Reported to Adjusted: breakdown by business line (€mn) Global Global Global Thermal Services FY 2018 Infrastructure Renewable Retail Enel X Total Generation & Holding & Networks Energies & Trading Reported 1,117 7,697 4,608 2,921 124 (116) 16,351 Extraordinar
Slide 47: From EBITDA to net income (€mn)
FY 2018 consolidated results From EBITDA to net income1 (€mn) FY 2018 FY 2017 FY 2018 FY 2017 ∆ yoy ∆ yoy reported reported ordinary ordinary 1 EBITDA 16,351 15,653 4.5% 16,158 15,555 3.9% D&A 6,451 5,861 6,365 5,819 EBIT 9,900 9,792 1.1% 9,793 9,736 0.6% Net financial charges (2,048) (2,692) (2,370
Slide 48: D&A reported (€mn)
FY 2018 consolidated results D&A reported (€mn) 1 FY 2018 FY 2017 ∆ yoy Italy 2,806.0 2,393.0 17% Iberia 1,834.0 1,731.0 6% South Am erica 1,394.0 1,234.0 13% North and Central Am erica 254.0 206.0 23% Europe 96.0 237.0 -60% Other 67.0 60.0 12% Total 6,451.0 5,861.0 10% 47
Slide 49: Gross debt structure
FY 2018 consolidated results Gross debt1 structure Long term debt by currency After swap Interest rate composition Long term credit ratings Rating Outlook 45% 81% 23% Standard & Poors BBB+ Stable 53.3 €bn 2% 53.3 €bn 56.9 €bn Moody’s Baa2 Stable 9% 3% 1% 77% 35% 3% 6% Fitch A- Stable 3% 1% 7% 4% EUR
Slide 50: Debt structure by instrument (€bn)
FY 2018 consolidated results Debt structure by instrument (€bn) North & Central South Rest of Africa, Asia Enel Spa EFI Italy Iberia Central Total Others America Europe & Oceania America Bonds 9.01 25.59 0 0 0.03 5.34 0 0 0 39.97 Bank Loans 1.05 0 0 4.36 1.54 2.91 0.11 0.32 0.36 10.65 Tax Partnershi
Slide 51: Debt maturity coverage split by typology (€bn)
FY 2018 consolidated results Debt maturity coverage split by typology (€bn) 29.1 21.2 4.6 Available committed credit lines1 14.5 24.5 7.0 6.5 5.5 Cash 3.6 4.3 0.9 Short Term 3.6 0.9 6.7 2.1 Bank Loans and Others 2.1 1.8 4.6 5.6 Bonds 1.3 2.2 1.8 FY 2018 2019 2020 2021 2022 2023 After 2023 1. Of whic
Slide 52: Balance sheet (€mn)
FY 2018 consolidated results Balance sheet (€mn) FY 2018 FY 2017 Δ Net financial debt 41,089 37,410 9.8% Shareholders' equity 47,852 52,161 -8.3% Net capital employed 88,940 89,571 -0.7% 51
Slide 53: Balance sheet structure (€mn)
FY 2018 consolidated results Balance sheet structure (€mn) Net fixed assets 106,456 7,077 2,099 97,280 -7,771 281 88,940 47,852 -10,025 41,089 Assets WIP (tangible Equity NWC Provisions Assets held Net capital Equity Net Debt & intangible) Investment for sale employed Net debt / Net capital employed
Slide 54: Headcount
FY 2018 consolidated results Headcount 1 FY 2018 FY 2017 ∆ yoy Italy 28,134 28,684 -2% Iberia 9,763 9,711 1% South Am erica 20,858 13,903 50% Rest of Europe 5,684 5,733 -1% North & Central Am erica 2,232 2,050 9% Africa, Asia & Oceania 241 198 22% Others 2,360 2,621 -10% Total 69,272 62,900 10% 53
Slide 55: Disclaimer
FY 2018 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 56: Contact us
FY 2018 consolidated results Contact us Contacts Email investor.relations@enel.com Phone +39 06 8305 7975 Monica Girardi Channels Head of Group Investor Relations Website Mobile App Investor Relations team Enel.com Enel Investors Federico Baroncelli Francisco Basauri Serena Carioti Alessia Di Ninno