Enel Spa · MIL:ENEL
Enel Spa — H1 2021 Earnings Presentation
48 slides from Enel Spa's earnings presentation, Jul 29, 2021
Slide 1: First Half Consolidated results
First Half Consolidated results July 29th, 2021
Slide 2: Key highlights of the period
Key highlights of the period Financial results Push on renewables Simplification Shareholder return Visible Significant translation of acceleration in Earnings 0.38 €/sh RES additions accretion guaranteed operating from Latam recovery into with +3.6 GW DPS built over the restructuring +6% vs 2020 fi
Slide 3: Solid operating recovery in Q2
Solid operating recovery in Q2 Renewables Infrastructure & Customers Networks Sharp acceleration in Volumes dynamics back Uplift in volumes drives renewables additions fueling to pre COVID-19 levels operating recovery current and future growth Additional built capacity (MW) Electricity distributed (
Slide 4: Stewardship model
Delivering on a fully sustainable capex plan, with investments up by 20% yoy Capex by business model and GBL (€bn) Ownership model +20% H1 2020 H1 2021 6% 1% Ownership model 6.00 Consolidated RES 42.9 46.6 capacity (GW) 4.1 4.9 5.00 4.6 €bn Smart meter 2.0 (mn) 14.9 21.0 0.3 47% 46% Customers free m
Slide 5: Global Power Generation key highlights
Global Power Generation Capacity and production evolution2 Renewables Conventional Generation Capacity (GW) Production (TWh) Renewable capacity reached 50 GW, +2.7 GW yoy +8% yoy 56% of total capacity 110.0 130.0 118 89.5 111 Key highlights 86.2 88.9 110.0 103 90.0 Phase out of coal capacity 90.0 -2
Slide 6: Acceleration in renewables additions, 3,600 MW built in the last twelve months
Acceleration in renewables additions, 3,600 MW built in the last twelve months Renewable capacity evolution LTM and outlook1 (GW) 100% Well on track to reach c. 5,800 MW in execution additions in 2021 1.3 GW built YTD, delivery in line with historical development 3.6 ~4.5 seasonality (0.1) Limited i
Slide 7: Pipeline enhances visibility on 2021-23 target
Pipeline enhances visibility on 2021-23 target (and beyond) and ringfences returns Renewables Pipeline (GW) Mature pipeline by geo 2021-23 Additional 19.5 GW capacity target 33% ~40 Residual target2 6.3 GW 24% ~73 GW ~179 Pipeline 3.6x Coverage Ratio3 29% ~305 14% +29 GW vs PY ~73 ~12 Europe North A
Slide 8: Infrastructure & Networks
Infrastructure & Networks Electricity distributed1: quarterly evolution (TWh) Focus on Latam +6% +7% H1 2020 H1 2021 yoy 231 246 37.6 40.0 +6% 250 .00 200 .00 Q2 108 120 179 H1 2021 150 .00 +11% 246 TWh 67 7.8 8.0 +3% 100 .00 +5% Q1 yoy 6.7 7.0 +4% 50. 00 123 126 +2% +1% 0.0 0 8.1 8.2 H1 2020 H1 202
Slide 9: Retail & Enel X
Retail & Enel X Retail Enel X and new infrastructures Free market Free market H1 2020 H1 2021 power customers (mn) energy sold (TWh)1 +2x +1.1mn +10% Charging points2 (k) 106 232 +39% 19 100 90.1 Fiber deployment 8.7 12.1 90 81.8 (Households passed mn) 19 80 18.4 70 +11% 18 60 +21% 18 50 62.3 69.4 S
Slide 10: Acceleration of simplification process in Latam
Acceleration of simplification process in Latam EGP AMERICAS’ ENEL COLOMBIA’S MERGER CREATION April 1, 2021 July 27, 2021 82.3% stake in Enel Américas Merger between Emgesa, after EGP Américas Codensa, EGP Colombia merger and PTO and ESSA 2 EGM approved the creation of 15.2 GW Enel Américas Enel Col
Slide 11: H1 2021 Financial results
H1 2021 Financtal results CNC l
Slide 12: Financial highlights (€mn)
Financial highlights (€mn) EBITDA1 Net Income1 FFO Operating performance Up by 10% net of FX, Recovering from stabilization supports liability management and COVID-19 impact recovery in economic result non-recurring items +10% -5% -4% net of FX, liability mgmt. and non-recurring +31% 880 0 270 0 300
Slide 13: EBITDA by business line
Solid and visible recovery in the operating performance bodes well for full year target EBITDA by business line 8.79 (0.27) (0.33) 0.17 8.36 0.37 Q2 Evolution (€bn) (0.10) (0.12) 4.05 4.20 3.2 3.5 H1 2021 8.4 €bn1 Q1 Evolution (€bn) (0.17) (0.21) (0.20) 0.1 1.6 4.74 4.16 EBITDA H1 FX Non recurring O
Slide 14: Global Power Generation
Global Power Generation Visible recovery in Q2 driven by new renewable additions EBITDA evolution (€mn) EBITDA by geography EGP Conventional Generation & Trading 5,00 0 -6% 4,50 0 c.250 €mn from new 9% 3,159 capacity installed 4,00 0 3,369 33% 3,50 0 21% H1 2021 Normalization of trading activities 3
Slide 15: Infrastructure and Networks
Infrastructure and Networks Performance up by 2% yoy net of Latam FX and non-recurring items in Europe EBITDA evolution (€mn) EBITDA by geography 5,00 0.00 -9% Latam: 5% increase in volumes 4,50 0.00 20% 26% 3,849 3,488 and tariff indexation 4,00 0.00 Latam 3,50 0.00 781 H1 2021 718 110 €mn negative
Slide 16: Retail
Retail Up by single digit yoy, back to pre COVID levels EBITDA evolution (€mn) Free market – Energy sold (TWh)1 +10% +3% 30.3 33.3 Improved performance led by free market in Italy 8.4 8.7 +4% 1,591 1,645 Italy 21.9 24.5 +11% -30% 222 Regulated 318 Uplift in volumes in the free market markets H1 2020
Slide 17: Net Income up by 10% net of FX and non-recurring items
Net Income up by 10% net of FX and non-recurring items Net Ordinary Income evolution (€bn) 2.6 -4% 200 €mn negative impact on financial expenses from liability managment 0.1 2.4 2.4 0.1 2.2 0.2 2.3 (0.09) Around 120 €mn negative contribution from non-recurring on taxes 2.0 1.8 (0.43) 1.6 Average cos
Slide 18: Cash flow (€bn)
Cash flow (€bn)1 10.0 8.0 8.4 6.0 ( 0.7 ) 4.0 ( 2.7 ) ( 1.2 ) ( 1.1 ) 2.0 2.7 - -2.0 (2.2) -4.0 -6.0 (4.9) Ordinary ∆ Provisions 3 ∆Working Income Financial FFO Capex FCF EBITDA capital taxes expenses 4 & other PY 8.42 (1.0) (3.5) (0.9) (1.0) 2.1 (4.1) (2.1) Delta YoY +32% +22% -30% -9% +31% +18% -5
Slide 19: Debt evolution
Debt evolution Net debt evolution (€bn) Gross debt (€bn) 60 55 +5% 0.3 0.9 50 2.4 1.4 59.0 62.1 45.4 50.4 2.2 Hybrids 45 2.2 60 6.0 4.8 Cash 6.9 Fin. receivables 40 50 7.6 40 30 35 50.4 Net debt 20 45.4 30 10 25 - 1 Dec 31, FCF Dividends APM New FX June 30, Dec 31, 2020 June 30, 2021 2020 paid Leasi
Slide 20: Sustainability linked bond
Increasing the share of sustainable finance while further reducing cost of debt Share of sustainable finance Liability management program after liability management Savings on financial expenses around 100 €mn per year from 2022. Liability Crystallising the current low rate curve New issues manageme
Slide 21: Closing remarks
Closing remarks Solid Focus on Full speed on DPS + EPS operating ongoing renewables growth recovery and simplification development underpins a delivery in Latam to backed by support the unlock value growing 2021TSR >10% achievement pipeline of FY targets 20
Slide 22: First Half 2021 Consolidated results Annexes
First Half 2021 Consolidated results Annexes
Slide 23: Macroscenario
H1 2021 consolidated results Macroscenario GDP (%) CPI (%) FX against €1 Spot Price (€/MWh) Electricity Demand (TWh) 2 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Italy 16.15 (18.13) 1.35 (0.38) - - 66.96 32.21 154.81 143.50 Iberia 19.94 (21.60) 2.47 (0.29) - - 58
Slide 24: Group consolidated net capacity by technology and geography
H1 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 12,432 786 772 29 - 2,237 5,594 4,583 26,433 Iberia 4,747 2,422 - 625 3,328 2,334 2,764 5,445 21,666 Latin America 10,585 2,
Slide 25: Group consolidated net production by technology and geography
H1 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 9,226 703 2,725 32 - 193 4,015 4,840 21,734 Iberia 3,704 2,983 - 495 12,815 1,752 430 5,414 27,592 Latin America 17,123 4
Slide 26: Group total additional capacity by technology and geography
H1 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 16 14 3 - - - - - 33 Iberia - - - 15 - - - - 15 Latin America - 273 28 219 - - 1 - 522 Argentina - - - - - - - - - Brazil -
Slide 27: Renewable projects in execution
H1 2021 consolidated results Renewable projects in execution: breakdown by technology and geography1 Solar & MW Wind Hydro Geothermal Total Other Italy 106 46 4 23 179 Iberia 439 20 - 2,044 2,503 Latin America 2,185 156 - 2,901 5,242 Rest of Europe 201 - - - 201 North America 1,105 - - 1,010 2,115 A
Slide 28: EGP mature pipeline
H1 2021 consolidated results EGP mature pipeline By technology By geography By COD 1% 10% 3% 14% 8% 28% 11% 44% ~73 GW ~73 GW ~73 GW 55% 33% 69% 24% Wind Italy North America 2022 Solar Iberia Rest of Europe 2023 Hydro & Others Latin America Africa, Asia & Oceania >2023 27
Slide 29: Infrastructure & Networks KPIs
H1 2021 consolidated results Infrastructure & Networks KPIs Electricity distributed (TWh) 1 End users (mn) Smart meters (mn)1 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Italy 106.4 101.0 31.5 31.4 30.8 30.8 Iberia 64.2 58.8 12.3 12.2 12.5 12.3 Latin America 67.3 63.9 27.9 27.4 0.4 0.4 Argentina
Slide 30: Retail KPIs
H1 2021 consolidated results Retail KPIs Power Gas 1 Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc) H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Italy 22.2 23.1 45.5 43.2 4.1 4.1 2.5 2.7 Iberia 10.2 10.5 39.4 39.0 1.7 1.7 2.8 2.6 Latin America 27.9 27.4 62.9 58.4 0.0 0
Slide 31: Enel X KPIs
H1 2021 consolidated results Enel X KPIs Charging Points1 (k) Street lighting (mn) Electric buses (#) Storage (MW) Demand Response (GW) H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Italy 32.3 19.6 1.6 1.6 - - 32 12 0.8 0.5 Iberia 8.0 5.7 0.1 0.1 31 7 21 20 - - Lati
Slide 32: Baseload power price & production sold forward
H1 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 92% 60.7 99% 65.0 20% Italy (€/MWh) Iberia (€/MWh)1 70.7 100% 73.
Slide 33: Capex (€mn)
H1 2021 consolidated results Capex1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Networks & Other H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Italy 97 55 1,088 803 160 80 187 135 4
Slide 34: Asset development Capex (€mn)
H1 2021 consolidated results Asset development Capex1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Networks & Other H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Italy 66 26 568 313
Slide 35: Revenues (€mn)
H1 2021 consolidated results Revenues1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Networks & Other H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Italy 3,674 8,763 3,551 3,633 1,173
Slide 36: Reported EBITDA (€mn)
H1 2021 consolidated results Reported EBITDA1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Networks & Other H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Italy 292 180 1,498 1,873 65
Slide 37: Ordinary EBITDA (€mn)
H1 2021 consolidated results Ordinary EBITDA1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Networks & Other H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Italy 357 228 1,806 1,896 66
Slide 38: Reported EBIT (€mn)
H1 2021 consolidated results Reported EBIT1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Networks & Other H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Italy 196 102 924 1,169 514 58
Slide 39: From EBITDA to net income (€mn)
H1 2021 consolidated results From EBITDA to net income1 (€mn) H1 2021 H1 2020 H1 2021 H1 2020 ∆ yoy ∆ yoy reported reported ordinary ordinary EBITDA 7,719 8,645 -10.7% 8,360 8,794 -4.9% D&A (3,348) (4,102) (3,162) (3,339) EBIT 4,371 4,543 -3.8% 5,198 5,455 -4.7% Net financial charges (1,061) (1,119)
Slide 40: D&A reported (€mn)
H1 2021 consolidated results D&A reported (€mn) 1 0 H1 2021 H1 2020 ∆ yoy Generation and Trading 471 1,185 -60% Enel Green Power 790 626 26% Distribution 1,299 1,470 -12% Retail 587 653 -10% Enel X 95 71 34% Others and adjustments 106 97 9% Total 3,348 4,102 -18% 39
Slide 41: Gross debt structure
H1 2021 consolidated results Gross debt1 structure Long term debt by currency After swap Interest rate composition Long term credit ratings Rating Outlook 50% 21% S&P BBB+ Stable 83% 56.9 €bn 2% 56.9 €bn 62.7 €bn Moody’s Baa1 Stable 7% 2% 2% 1% 5% 7% 79% Fitch A- Stable 2% 4% 34% 1% EUR USD BRL CLP
Slide 42: Debt structure by instrument (€bn)
H1 2021 consolidated results Debt structure by instrument (€bn) EGP SpA and Latin North Africa, Asia Debt by instrument Enel Spa EFI Italy Iberia Europe Total Central America America and Oceania Others Bonds 5.55 32.21 - - 0.02 4.80 - 0.06 - 42.64 Bank Loans 1.39 - 0.34 3.60 2.54 1.88 0.42 0.28 0.36
Slide 43: Debt maturity coverage split by typology (€bn)
H1 2021 consolidated results Debt maturity coverage split by typology (€bn) Available liquidity 29.2 4.8 8.0 20.2 €bn 15.4 7.8 7.7 21.2 5.6 5.9 5.9 1.3 Short Term 5.8 1.2 1.1 1.2 Bank Loans and Others 4.4 4.8 6.4 4.7 Available committed Bonds 0.9 1.1 credit lines1 2021 2022 2023 2024 2025 After 2025
Slide 44: Balance sheet (€mn)
H1 2021 consolidated results Balance sheet (€mn) H1 2021 FY 2020 Δ Net financial debt 50,418 45,415 11.0% Shareholders' equity 44,414 42,357 4.9% Net capital employed 94,832 87,772 8.0% 43
Slide 45: Balance sheet structure (€bn)
H1 2021 consolidated results Balance sheet structure (€bn) Net fixed assets 109 10.9 0.8 0.6 (5.0) 97.1 (9.6) 94.8 44.4 50.4 Assets WIP (tangible Equity NWC Provisions Assets held Net capital Equity Net Debt & intangible) Investment for sale employed Net debt / 53% Net capital employed 44
Slide 46: Headcount
H1 2021 consolidated results Headcount 1 0 H1 2021 FY 2020 ∆ Generation and Trading 8,057 8,142 -1% Enel Green Power 8,606 8,298 4% Distribution 33,225 34,332 -3% Retail 6,192 6,324 -2% Enel X 3,160 2,989 6% Others and adjustments 6,683 6,632 1% Total 65,923 66,717 -1% 45
Slide 47: Disclaimer
H1 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
H1 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