Slide 1: Investor presentation 2017-19 strategic plan June 2017
Investor presentation 2017-19 strategic plan June 2017
Slide 2: Agenda
Investor presentation Agenda Enel today Page 2 2017-19 strategic plan - Key pillars Page 8 2017-19 strategic plan - Key financials Page 26 1Q 2017 consolidated results Page 34 FY 2016 consolidated results Page 40 2017-19 strategic plan - Annexes Page 46 1Q 2017 consolidated results - Annexes Page 62
Slide 3: Enel today
Investor presentation Enel today
Slide 4: Enel today: global and diversified operator
Investor presentation Enel today: global and diversified operator1 40 €bn Regulated Asset Base 62 mn distribution end users 38 GW renewable capacity2 #1 in Italy, Spain, Chile, Peru Global leadership in #2 in Argentina, Colombia renewables 18.3 mn free retail customers 47 GW thermal capacity Hi
Slide 5: Enel today: global and diversified operator
Investor presentation Enel today: global and diversified operator1 North & Central America Italy Iberia Europe 54% 18% 50% 0.8 €bn 6.6 €bn 18% 3.6 €bn 49% 0.8 €bn 3% 5% 43% 23% 5% 29% 10% 30% 100% 15% -2% 22% Latin America 2016 Group ordinary EBITDA 39% 47% 17% 3.6 €bn 15.2 €bn 24% 46% 15% Networks
Slide 6: EBITDA risk profile
Investor presentation EBITDA risk profile 120 % 120 % 15.2 €bn 15.2 €bn 85% natural hedge of merchant generation 100 % 100 % 17 15 15% regulated Retail free market Retail % % 10 80% 10 60% contracted under long term PPAs 80% Merchant generation Thermal Generation 40% merchant and sold forward wi
Slide 7: Enel transformation: how are we changing
Investor presentation Enel transformation: how are we changing 2013 2016 More efficient 12.6 €bn Cash-cost 11.4 €bn -10% Greener 6.4 GW Renewable capacity1 11.0 GW +70% Investing for growth 2.4 €bn Growth capex 5.9 €bn2 +145% Improved cash generation 20% FFO/Net Debt 26% +6 p.p. 19% Net income/EBITD
Slide 8: A sustainable strategy
Investor presentation A sustainable strategy United Nations Sustainable Development Goals (SDGs) Enel SDGs 2016 results 2020 targets 300,000 people 400,000 people 3 mn people, 1.2 mn people mainly in Africa, Asia and Latin America 1.1 mn people 1.5 mn people1 ~395 gCO2/kWheq < 350 gCO2/kWheq2 1. Tar
Slide 9: 2017-19 strategic plan Key pillars
Investor presentation 2017-19 strategic plan Key pillars
Slide 10: Industrial strategic pillars revisited
Investor presentation Industrial strategic pillars revisited Operational efficiency Industrial growth Customer focus Shareholder Digitalization remuneration Group simplification Active portfolio management 9
Slide 11: Delivery on industrial strategic pillars
Investor presentation Delivery on industrial strategic pillars 1 ✔ -8% of cash costs in nominal terms in 2016 Operational efficiency -7% additional savings by 2019 2 ✔ 0.8 €bn 2016 growth EBITDA achieved Industrial growth 85% of 2017 growth EBITDA already addressed 3 ✔ Simplification at holding lev
Slide 12: Operational efficiency
Investor presentation Operational efficiency1 (€mn) Maintenance capex Opex Cash cost -16% -14% -15% 6,00 0.00 13,0 00.00 8.6 €bn 8.3 €bn 11.6 €bn 12,5 00.00 5,00 0.00 12,0 00.00 12,397 11.1 €bn 3.0 €bn 4,00 0.00 11,5 00.00 2.8 €bn 9,081 8,494 11,428 11,0 00.00 3,00 0.00 7,800 10,5 00.00 3,316 2,00
Slide 13: Operational efficiency: focus on opex
Investor presentation Operational efficiency: focus on opex Opex evolution1 Opex by business3 -16% Networks -9% €/end user 56.8 50.6 47.7 2015A 2016A 2019E Renewables -26% 0.6 0.1 (0.5) k€/MW (1.0) 42.1 39.6 31.1 8.6 2015A 2016A 2019E -6% 0.5 €bn from 7.8 Thermal digitalization Generation4 k€/MW 38.
Slide 14: Industrial growth: 2017-19 capex plan
Investor presentation Industrial growth: 2017-19 capex plan Total capex (€bn) Growth capex by business line (€bn) Growth capex by geography (€bn) 25 21.2 20.9 14 12.7 12.4 14 12.7 12.4 0.3 20 12 0.5 0.6 12 1.5 95% 0.8 95% 1.5 10 10 1.1 0.5 12.7 1.2 0.5 15 12.4 8 7.3 -29% 5.2 8 4.8 10 6 6 4.5 4 4 1
Slide 15: Industrial growth: Global Infrastructure & Networks (1/2)
Investor presentation Industrial growth: focus on Global Infrastructure & Networks (1/2) Growth capex by area Growth capex by technology Key figures 38% 32% + 2 mn connected end users 5.8 €bn 21% 5.8 €bn Cumulative growth EBITDA 2.2 €bn 31% 37% 36% 5% Average time to EBITDA < 2 years Smart grid & E-
Slide 16: Industrial growth: Global Infrastructure & Networks (2/2)
Investor presentation Industrial growth: focus on Global Infrastructure & Networks (2/2) Italy Spain Romania Latam 2016 WACC 5.6% 6.5%1 7.7% 10% / 13.7%2 real pre tax Argentina 2017 Approved Chile 2017 Approved 2024 Colombia 2017 Under review Next regulatory cycle TOTEX mechanism 2020 2019 Brazi
Slide 17: Industrial growth: renewables, Build, Sell and Operate model
Investor presentation Industrial growth: renewables, Build, Sell and Operate model (BSO) Gross pipeline1 by technology 35 Coverage ratio 5 Capacity additions (GW) 4.5 30 3x 4 3% 25 3.5 1% 56% 20 3 2.6 19.5 2.5 2.1 19.5 GW 15 0.4 2 1.7 40% 10 6.7 1.5 1 5 3.2 1.7 0.5 0.9 0 3.5 0 Wind Solar Hydro 2017
Slide 18: Industrial growth: focus on capex in execution
Investor presentation Industrial growth: focus on capex in execution 2017-19 growth capex In execution by business By COD1 Growth EBITDA by year (€bn) 4% 3 2.6 2017 39% 2.5 42% 46% 1.9 2018 22% 2 12.4 €bn 6.5 €bn 1.5 1.4 1.9 49% 2019 27% 1.3 53% 1 0.8 1% 2% 0.5 0.8 >2019 12% 3% 0 In operation Networ
Slide 19: Digitalization
Investor presentation Digitalization 2017-19 cumulative benefits1 2017-19 cumulative digitalization capex Margins Opex EBITDA Asset 3.9 €bn 0.9 €bn (0.2) €bn 1.1 €bn 15% 4.7 €bn 2% Customer 0.7 €bn 0.2 €bn (0.2) €bn 0.4 €bn 83% People 0.1 €bn - (0.1) €bn 0.1 €bn Asset Customers People 1.1 €bn (0.5)
Slide 20: Customer focus
Investor presentation Customer focus 70. 0 End-users and electricity distributed1 600 80. 0 Free customers and volumes 380 Key drivers 550 293 70. 0 330 68. 0 447 500 60. 0 262 280 Integrated energy management 66. 0 426 450 50. 0 230 400 230 64. 0 40. 0 213 34.0 180 32.2 64.0 350 Merchant risk mitig
Slide 21: Customer focus
Investor presentation Customer focus EBITDA retail (€bn) Key drivers Key figures 6.0 +20% +16.5 mn power customers 5.0 Growth of retail customer base worldwide +0.4 mn gas customers 4.0 3.0 Higher focus on corporate +50% increase in volumes 2.6 3.0 customers in Latam -11% reduction in unit margin 2.
Slide 22: Customer focus: additional value creation
Investor presentation Customer focus: high potential for additional value creation Public lighting Design, installation and management of public lighting Current offering B2B, B2C, distributed generation storage + solar PV Traditional e-home Platform Consolidation in offering heat pumps, boilers, LE
Slide 23: Operational targets by business
Investor presentation Operational targets by business Networks Retail Renewables Thermal generation End users (mn) Free customer base1 (mn) Managed capacity (GW) Installed capacity3 (GW) Smart meters (mn) Consolidated capacity (GW) Large hydro (GW) 55. 0 48.1 40.0 0 50. 0 45.7 50.0 0 41.2 45.0 0 37.
Slide 24: Group simplification: Latin America restructuring
Investor presentation Group simplification: Latin America restructuring New corporate structure 2016 key metrics2 Key highlights Enel Enel Target to reduce the number of Americas Chile companies, from 66 to <30 2.4 $bn EBITDA 1.1 $bn 51.8% (1) 60.6% 470 $mn of total efficiency2 by 2019 Enel Enel Chi
Slide 25: Active portfolio management
Investor presentation Active portfolio management Disposals1 completed in 2016 (€bn) Acquisitions completed in 2016 (€bn) 2017-19 active portfolio management program3 Slovenske Elektrarne 1.3 Open Fiber 0.4 ~4.5 €bn 5.00 Minority EGP North America2 1.2 Latam restructuring 0.2 4.50 buy-out Romania 4.
Slide 26: Shareholder remuneration
Investor presentation Shareholder remuneration Dividend policy Minimum DPS (€/sh) +17% +12% NEW 65% 70% 70% 0.21 50% 55% 0.18 60% 65% 65% 0.16 0.20 2015 2016 2017 2018 2019 2015A 2016A 2017E Confidence on strategy delivery allows improved shareholder return 25 - Previous plan
Slide 27: 2017-19 strategic plan Key financials
Investor presentation 2017-19 strategic plan Key financials
Slide 28: Enel transformation and 2019 targets
Investor presentation Enel transformation and 2019 targets Profitability & cash generation Leverage Returns 0.7 90% 4.5 0 30% 0.4 12% 10.4 10.5 12% 26% 12% % 80% 4.0 0 0.3 % 0.6 11% 11% >60% >60% 70% 3.5 0 20% 0.3 0.5 50% 60% 3.0 0 0.2 11% 12% 11% 10% 0.4 10% 50% 2.5 0 0.2 10% 0.3 40% 2.0 0 2.5x 2.5
Slide 29: EBITDA evolution
Investor presentation EBITDA evolution Ordinary EBITDA (€bn) 2016-19 ordinary EBITDA evolution (€bn) 25. 0 22. 0 23. 0 20. 0 +15% 21. 0 19. 0 1.0 (0.4) 18. 0 17. 0 1.6 17.2 16. 0 17.2 15. 0 16.2 13. 0 15.0 15.5 14. 0 15.0 11. 0 9.0 12. 0 7.0 10. 0 5.0 2016E 1 2017E 2018E 2019E 2016E Growth Efficienc
Slide 30: EBITDA evolution
Investor presentation EBITDA evolution 2016-19 EBITDA evolution by business line and country (€bn) 0.6 (0.5) 0.7 0.4 1.0 17.2 15.0 2016E1 Global Global Thermal Global Retail Active portfolio 2019E Infrastructure Generation Renewable management & Networks & Trading Energies & other 1.6 0.1 (0.4) 0.7
Slide 31: Group net income evolution
Investor presentation Key financials: Group net income evolution Group net ordinary income (€bn) 2016-19 Group net ordinary income evolution (€bn) 7.0 9.0 6.5 8.0 +47% 6.0 7.0 5.5 2.1 0.5 (0.6) 6.0 (0.1) 0.1 (0.5) 4.7 5.0 5.0 4.1 4.5 4.4 4.0 4.7 3.6 4.0 3.0 3.2 3.5 3.2 2.0 3.4 3.0 1.0 2.5 2.0 0.0 20
Slide 32: Financial plan and strategy
Investor presentation Financial plan and strategy Gross and net debt (€bn) Net financial expenses on debt (€bn) -6% -12% 5.0% 4.0 4.7% 3.5 51.4 5.0 % ~49.5 ~49.5 ~48.5 3.0 8.3 ~6.5 ~6.5 ~6.0 2.5 4.5 % 5.5 ~5.0 ~5.0 ~5.0 2.5 2.4 4.0 % 2.3 2.0 1.5 2.2 3.5 % 37.6 ~38.0 ~38.0 ~37.5 1.0 3.0 % 0.5 - 2.5 %
Slide 33: 2017-19 cumulated cash flow
Investor presentation 2017-19 cumulated cash flow (€bn) 60. 0 ~(3.5) - 50. 0 ~(7.0) ~49.0 40. 0 ~(7.0) ~(8.6) 30. 0 ~31.5 ~(11.9) 20. 0 ~22.9 ~(10.3) 10. 0 ~11.0 ~2.5 ~4.0 ~0.7 0.0 Ordinary ∆ Provisions1 ∆ NWC Income Financial FFO Maintenance FFO after Net FCF Dividends Net FCF Cash-in Minority EBIT
Slide 34: Group targets
Investor presentation Group targets CAGR (%) 2016A 2017E 2018E 2019E 2016-19 Ordinary EBITDA (€bn) 15.2 15.5 16.2 17.2 ~+4% Net ordinary income (€bn) 3.2 3.6 4.1 4.7 ~+14% Minimum dividend per share (€) 0.18 0.21 - - ~+22% Pay-out ratio 57% 65% 70% 70% +13 p.p. FFO/Net Debt 26% 26% 27% 30% ~+4
Slide 35: 1Q 2017 consolidated results
Investor presentation 1Q 2017 consolidated results
Slide 36: 1Q 2017 results: financial highlights
Investor presentation 1Q 2017 results: financial highlights (€mn) 1Q 2017 1Q 2016 ∆ yoy Adjusted Revenues 19,366 17,872 +8% Reported EBITDA 3,914 4.017 -3% Ordinary EBITDA1 3,763 3,871 -3% Stable (4) Reported EBIT 2,525 2,670 -5% Ordinary EBIT 2,374 2,524 -6% Reported Group net income 983 939 +5% Gr
Slide 37: 1Q 2017 ordinary EBITDA evolution
Investor presentation 1Q 2017 results: ordinary EBITDA evolution (€mn) -3% -% 86 (31) (136) 130 (149) (19) 84 400 0.0 (73) 3,871 3,852 3,836 350 0.0 3,763 300 0.0 +3% (Net of perimeter) 250 0.0 200 0.0 1Q 2016 One-offs 1 1Q 2016 Growth Efficiency Retail Scenario & Forex Perimeter 3 1Q 2017 One-offs
Slide 38: 1Q 2017 adjusted EBITDA by geography
Investor presentation 1Q 2017 results: adjusted EBITDA by geography (€mn) 500 0.0 Italy -% Italy 1,801 €mn 1,959 €mn 450 0.0 Iberia Iberia 843 €mn 674 €mn 162 (169) 130 (149) 41 3 (5) 16 (45) Latam 400 0.0 Latam 849 €mn 1,029 €mn 3,852 3,836 Europe & 350 0.0 Europe & North Africa North Africa 238 €m
Slide 39: 1Q 2017 Italian retail market
Investor presentation 1Q 2017 results: Italian retail market Power unitary margin (€/MWh) -21% 30.0 0 28 25.0 0 Ordinary EBITDA (€mn) Free market energy sold (TWh) 20.0 0 15.0 0 22 10.0 0 900 .00 +14% 25.0 0 +20% 5.00 - 800 .00 641 20.0 0 1Q 2016 1Q 2017 700 .00 560 15.1 600 .00 15.0 0 12.6 Cost-t
Slide 40: 1Q 2017 forward sales
Investor presentation 1Q 2017 results: forward sales1 Italy 2017 Italy 2018 59 TWh 61 TWh Regulated / Achieved Regulated / Achieved quasi regulated quasi regulated 2% 30% Price1 43 €/MWh 38% Price1 44 €/MWh Price driven Price driven 35% 100% vs. plan vs. plan 60% Spread driven 35% Spread2 +4 €
Slide 41: FY 2016 consolidated results
Investor presentation FY 2016 consolidated results
Slide 42: Financial highlights: FY 2016 results
Investor presentation Financial highlights: FY 2016 results (€mn) FY 2016 FY 2015 ∆ yoy Like-for-like Revenues 70,592 75,658 -7% Reported EBITDA 15,276 15,297 -% Ordinary EBITDA1 15,174 15,040 +1% +3% (5) Reported EBIT 8,921 7,685 +16% Ordinary EBIT2 9,435 9,215 +2% Reported Group net income 2,570 2
Slide 43: Ordinary EBITDA evolution: FY 2016 results
Investor presentation Ordinary EBITDA evolution: FY 2016 results (€mn) +1% +3% 170 00.0 704 (725) 160 00.0 529 (133) (383) (264) 478 (72) 150 00.0 15,040 15,246 15,174 140 00.0 14,776 130 00.0 +6% (Net of forex) 120 00.0 110 00.0 100 00.0 FY 2015 One-offs 1 FY 2015 Growth Efficiency Retail Scenario
Slide 44: Adjusted EBITDA by geography: FY 2016
Investor presentation Adjusted EBITDA by geography: FY 2016 results (€mn) 170 00.0 Italy +3% Italy 6,755 €mn 165 00.0 6,688 €mn Iberia 8 12 (133) Iberia 160 00.0 17 256 (383) 3,494 €mn 713 3,536 €mn 155 00.0 Latam Latam 3,249 €mn 150 00.0 (61) 41 15,246 3,605 €mn Europe & Europe & North Africa 145 0
Slide 45: Italian retail market: FY 2016 results
Investor presentation Italian retail market: FY 2016 results Power unitary margin (€/MWh) -% 30.0 0 25.0 0 Adjusted EBITDA1 (€bn) Free market energy sold (TWh) 20.0 0 27 27 15.0 0 10.0 0 +36% 80.0 0 +24% 5.00 - 2.50 70.0 0 1.9 2015A 2016A 51.6 60.0 0 2.00 1.4 50.0 0 41.6 12.4 Cost-to-serve (€/cust
Slide 46: Cash flow: FY 2016 results
Investor presentation Cash flow (€mn): FY 2016 results (1,512) 15,5 00 719 (1,959) 13,5 00 15,174 (2,576) 11,5 00 (8,842) Maint. 9,50 0 9,846 7,50 0 2,934 5,50 0 Growth 3,50 0 5,909 750 1,754 (2,506) 1,50 0 1,494 742 -500 -2,500 Ordinary Provisions1 Working Income Financial FFO 3 Capex BSO Free D
Slide 47: 2017-19 strategic plan Annexes
Investor presentation 2017-19 strategic plan Annexes
Slide 48: Enel transformation: updated organizational structure
Investor presentation - strategic plan annexes Enel transformation: updated organizational structure Global Global Global Global Infrastructure Renewable Thermal Trading & & Networks Energies Generation Upstream Gas Italy Iberia Customers Best practices implementation Europe & North Africa Loc
Slide 49: Assumptions: Commodities, prices, macroeconomics and FX
Investor presentation - strategic plan annexes Assumptions: Commodities, prices, macroeconomics and FX 2016 2017 2018 2019 Scenario New Plan Old Plan New Plan Old Plan New Plan Old Plan New Plan Old Plan Brent $/bbl 45 63 48 66 52 70 55 74 Coal $/ton 56 60 50 64 52 68 53 71 Gas TTF €/MWh 13 21 14 21
Slide 50: Macro scenario: revised assumptions for commodities and prices
Investor presentation - strategic plan annexes Macro scenario: revised assumptions for commodities and prices Gas price - TTF (€/MWh) Coal price - API2 (USD/ton) CO2 (€/ton) 20. 00 28. 00 85. 00 71.4 18. 00 16.0 21.3 21.5 21.6 68.3 13.0 64.4 16. 00 75. 00 23. 00 65. 00 14. 00 11.0 12. 00 18. 00 10.
Slide 51: Industrial growth: focus on growth EBITDA
Investor presentation - strategic plan annexes Industrial growth: focus on growth EBITDA 2017-19 growth capex by business 2017-19 cumulated growth EBITDA Growth EBITDA by year (€bn) 37% 3 2.6 42% 6% 27% 2.5 5% 1.9 2 12.4 €bn 55% 4 €bn 1.4 3% 1.9 45% 1.5 1% 1.3 15% 1 0.8 47% 17% 0.5 0.8 0 Networks Re
Slide 52: Summary by business line
Investor presentation - strategic plan annexes Summary by business line Networks Retail Renewables Thermal generation EBITDA CAGR1 +4.7% EBITDA CAGR1 +7.2% EBITDA CAGR1 +3.3% EBITDA CAGR1 +2% 35. 00 18. 00 20. 00 8.0 0 18. 00 16. 00 7.0 0 30. 00 16. 00 14. 00 6.0 0 25. 00 14. 00 12. 00 5.0 0 12. 00
Slide 53: EBITDA targets by Country and Global Business Line
Investor presentation - strategic plan annexes EBITDA targets by Country and Global Business Line (€bn) 2016 2017 2018 2019 Italy 6.6 6.8 7.1 7.5 Global Thermal Generation (0.1) (0.1) (0.1) 0.1 Global I&N 3.6 3.5 3.6 3.8 Global Renewable Energies 1.0 1.2 1.4 1.3 Retail 1.9 2.0 2.1 2.1 Service & Othe
Slide 54: EBITDA targets new vs old perimeter
Investor presentation - strategic plan annexes EBITDA targets new vs old perimeter (€bn) Global Renewables Energies 2016 2017 2018 2019 Global Global Global Global Large Large Large Large EGP1 Renew able EGP1 Renew able EGP1 Renew able EGP1 Renew able Hydro Hydro Hydro Hydro Energies Energies Energi
Slide 55: Capex plan 2016-19
Investor presentation - strategic plan annexes Capex plan 2016-19 (€bn) 2016 2017 2018 2019 Growth Maintenance Growth Maintenance Growth Maintenance Growth Maintenance Italy 0.5 1.3 0.8 1.2 1.1 1.2 0.9 1.2 Global Thermal Generation 0.0 0.1 0.0 0.1 0.0 0.1 0.0 0.1 Global I&N 0.4 0.9 0.6 0.9 0.9 0.8 0
Slide 56: ESG strategic pillars
Investor presentation - ESG annexes ESG strategic pillars Engaging the local communities Customer focus Digitalization Engaging the people we work with Aiming at operating efficiency and innovation Decarbonizing the energy mix 55
Slide 57: Engaging the local communities
Investor presentation - ESG annexes Engaging the local communities Related SDGs Industrial actions Related targets/commitments Access to affordable, sustainable and 3 mn people, mainly in Africa, Asia and modern energy Latin America by 2020 Employment and sustained, inclusive and 1.5 mn people by 20
Slide 58: Engaging the people we work with
Investor presentation - ESG annexes Engaging the people we work with Related SDGs Industrial actions Related targets/commitments Appraise performance of all employees 2020: 100% of eligible employees involved having worked for at least 3 months in the 2020: 99% of TP1 appraised Group 2020: 94% of TP
Slide 59: Aiming at operating efficiency and innovation
Investor presentation - ESG annexes Aiming at operating efficiency and innovation Related SDGs Industrial actions Related targets/commitments Large scale infrastructure innovation: storage, electric vehicles, grid digitization +18 mn smart meters rolled out by 2019 and smart meters Open fiber: ultra
Slide 60: Decarbonizing the energy mix
Investor presentation - ESG annexes Decarbonizing the energy mix Related SDGs Industrial actions Related targets/commitments +~8 GW of additional renewable capacity Development of renewable capacity by 20191 Reduction of thermal capacity -16 GW by 2019 < 350 gCO2 /KWheq by 2020 Specific CO2 emissio
Slide 61: Mitigation of other environmental impacts
Investor presentation - ESG annexes Mitigation of other environmental impacts Related SDGs Industrial actions Related targets/commitments Reduction of SO2 specific emissions -30% by 2020 (vs 2010) Reduction of NOx specific emissions -30% by 2020 (vs 2010) Reduction of particulates specific -70% by 2
Slide 62: Digitalization and related risks: cyber security framework
Investor presentation - ESG annexes Digitalization and related risks: cyber security framework Framework highlights Cyber security related targets/commitments Asset 100% of internet web applications Single strategy approach based on protected through advanced cybersecurity business risk management C
Slide 63: 1Q 2017 consolidated results Annexes
Investor presentation 1Q 2017 consolidated results Annexes
Slide 64: Operational efficiency: focus on opex
Investor presentation - 1Q 2017 results Operational efficiency: focus on opex Opex evolution1 Opex by business3 +1% 3,5 00.0 Networks +2% €/end user 50.6 50.9 LTM 3,0 00.0 FY 2016 Renewables -1% 2,5 00.0 128 25 (24) (86) k€/MW 2,0 00.0 39.6 39.3 2,084 2,127 LTM FY 2016 1,5 00.0 -% Thermal Generation
Slide 65: Industrial growth: operational targets by business
Investor presentation - 1Q 2017 results Industrial growth: operational targets by business Networks Retail Renewables Thermal generation End users (mn) Free customer base1 (mn) Managed capacity (GW) Installed capacity3 (GW) Smart meters (mn) Consolidated capacity (GW) Large hydro (GW) 70.0 0 +3.9 +1
Slide 66: Industrial growth: capex
Investor presentation - 1Q 2017 results Industrial growth: capex Total capex1 (€mn) Growth capex by business line (€mn) -12% -13% 200 0 1,650 140 0 180 0 160 0 1,453 120 0 1,142 140 0 6 125 997 120 0 100 0 -82% 22 6 1,142 800 100 0 -13% 997 800 600 783 -13% 684 600 400 400 508 -10% 456 200 +25% 285
Slide 67: Renewables, Build, Sell and Operate model
Investor presentation Industrial growth: renewables, Build, Sell and Operate model (BSO) 18. 0 8 7 16. 0 Consolidated capacity1 (GW) BSO in 2016 2017-19 BSO capacity additions (GW) 6 14. 0 Impact on net debt 5 -450 €mn JV deconsolidation 2.0 (1.6) 12. 0 -750 €mn BSO disposals 4 11.0 1.0 3.2 10.6 10.
Slide 68: Global Renewable Energies: ordinary EBITDA analysis
Investor presentation - 1Q 2017 results Global Renewable Energies: ordinary EBITDA analysis (€mn) -10% 120 0.0 65 11 (183) 1,044 100 0.0 62 (67) 932 800 .0 EGP 462 EGP 600 .0 433 400 .0 Large -4% Large Hydro (Net of perimeter) Hydro 200 .0 582 499 0.0 1Q 2016 Growth Efficiency Scenario Forex Perimet
Slide 69: Italy: ordinary EBITDA analysis by business
Investor presentation - 1Q 2017 results Italy: ordinary EBITDA analysis by business (€mn) +8% 220 0.0 210 0.0 Retail 200 0.0 81 (1) (2) Retail 560 €mn 106 641 €mn 1,959 190 0.0 Renewables (26) Renewables 180 0.0 281 €mn 170 0.0 1,801 280 €mn Generation 160 0.0 Generation 50 €mn 150 0.0 156 €mn 140 0
Slide 70: From ordinary EBITDA to net ordinary income
Investor presentation - 1Q 2017 results From ordinary EBITDA to net ordinary income (€mn) (1,389) 3,763 (625) 2,374 (554) 1,749 (252) 943 Ordinary D&A EBIT Financial EBT Income Minorities Group EBITDA expenses taxes net ordinary & other 1 income 1Q 2016 (€bn) 3.9 (1.3) 2.5 (0.8) 1.7 (0.5) (0.4) 0.8
Slide 71: Cash flow
Investor presentation - 1Q 2017 results Cash flow (€mn) 4,00 0 (284) (1,049) 3,00 0 3,763 (35) (655) 2,00 0 (1,453) 1,00 0 1,740 Growth 997 287 (1,289) - (757) -1,000 (1,759) -2,000 Ordinary Provisions1 Working Income Financial FFO 3 Capex Free Dividends Active Net free EBITDA capital taxes expen
Slide 72: Net debt evolution
Investor presentation - 1Q 2017 results Net debt evolution (€mn) +1,727 Dec 31, 2016 Mar 31, 2017 continuing Free cash flow Active portfolio continuing operations after dividends management Forex operations 37,553 39,282 1,002 757 (30) Net debt evolution affected by acquisitions and interim dividend
Slide 73: Debt and financial expenses
Investor presentation - 1Q 2017 results Debt and financial expenses (€mn) Gross and net debt Net financial expenses on debt -2% -8% 51,388 50,455 8,326 5,647 5,509 5,526 37,553 39,282 651 598 FY 2016 1Q 2017 1Q 2016 1Q 2017 Net debt Financial receivables Cash Financial expenses reduction in line wit
Slide 74: From EBITDA to net income
Investor presentation - 1Q 2017 results From EBITDA to net income (€mn) 1 1Q 2017 1Q 2016 1Q 2017 1Q 2016 ∆ yoy ∆ yoy reported reported ordinary ordinary EBITDA 3,914 4,017 -2.6% 3,763 3,871 -2.8% D&A 1,389 1,347 1,389 1,347 EBIT 2,525 2,670 -5.4% 2,374 2,524 -5.9% Net financial charges (664) (852)
Slide 75: Reported EBITDA matrix
Investor presentation - 1Q 2017 results Reported EBITDA matrix (€mn) Global Generation Global Infrastructures Renew able Services Retail Total Total & Trading & Netw orks Energies & Other 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 Italy 156 196 86
Slide 76: Reported EBITDA matrix: new vs old perimeter
Investor presentation - 1Q 2017 results Reported EBITDA matrix (€mn): new vs old perimeter Global Thermal Generation & Trading Global Renewable Energies 1Q 2017 1Q 2016 1Q 2017 1Q 2016 Global Global Global Global Global Global Therm al Therm al Renew able EGP Renew able EGP Generation Generation Gen
Slide 77: Ordinary EBITDA matrix
Investor presentation - 1Q 2017 results Ordinary1 EBITDA matrix (€mn) Global Therm al Global Infrastructures Global Renew able Services Retail Total Total Generation & Trading & Netw orks Energies & Other 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016
Slide 78: Ordinary EBITDA matrix: new vs old perimeter
Investor presentation - 1Q 2017 results Ordinary EBITDA matrix (€mn): new vs old perimeter Global Thermal Generation & Trading Global Renewable Energies 1Q 2017 1Q 2016 1Q 2017 1Q 2016 Global Global Global Global Global Global Therm al Therm al Renew able EGP Renew able EGP Generation Generation Gen
Slide 79: EBITDA from Reported to Adjusted: by geography
Investor presentation - 1Q 2017 results EBITDA from Reported to Adjusted: breakdown by geography (€mn) Europe North & Sub-Saharan 1Q 2017 Italy Iberia Latam & North Central Other Total Africa & Asia Africa America Reported 1,959 694 1,087 144 113 12 (95) 3,914 Extraordinary items - - (151) - - - - (
Slide 80: EBITDA from Reported to Adjusted: by business line
Investor presentation - 1Q 2017 results EBITDA from Reported to Adjusted: breakdown by business line (€mn) Global Thermal Global Global Services 1Q 2017 Generation Infrastructure Renewable Retail Total & Holding & Trading & Networks Energies Reported 615 1,709 932 710 (52) 3,914 Extraordinary items
Slide 81: Operational efficiency: opex
Investor presentation - 1Q 2017 results Operational efficiency: opex (€mn) +5% +2% 2,084 0 2,084 2,127 60 2,187 2,30 0 2,30 0.00 1,80 0 1,80 0.00 1,058 1,118 1,097 1,097 Personnel -4% 1,30 0 1,30 0.00 +8% 800 800 .00 External costs 1,132 1,132 1,224 1,224 300 300 .00 Capitalized costs (2 00) (145) (
Slide 82: Forward sales Latam
Investor presentation - 1Q 2017 results Forward sales Latam Chile Colombia 100% 100% 85% 100% 90% 75% 2017 2018 2020 2017 2018 2020 75 77 84 59 61 74 Peru Brazil 100% 100% 100% 100% 100% 80% 2017 2018 2020 2017 2018 2020 49 50 54 52 58 68 Hedged production Unhedged production - Average price (USD/MW
Slide 83: Gross debt structure
Investor presentation - 1Q 2017 results Gross debt1 structure Long term debt by currency After swap Interest rate composition Long term credit ratings Rating Outlook 57% 24% Standard & Poors BBB Positive 83% 48.4 €bn 2% 48.4 €bn 51.2 €bn Moody’s Baa2 Stable 10% 4% 1% 76% 4% 4% 6% Fitch BBB+ Stable 2
Slide 84: Debt structure by instrument
Investor presentation - 1Q 2017 results Debt structure by instrument (€bn) North & Central Latin Europe & Sub-Saharan Debt by instrument Enel Spa EFI Italy Iberia Central Total Others America North Africa Africa & Asia America Bonds 13.36 19.55 - - 0.06 4.04 - 0.17 - 37.18 Bank Loans 0.05 - - 4.59 1
Slide 85: Debt maturity coverage split by typology
Investor presentation - 1Q 2017 results Debt maturity coverage split by typology (€bn) 25.2 19.7 5.1 Available 14.1 committed credit lines1 20.1 6.9 6.9 1.3 5.5 Short Term2 2.8 Cash 5.6 1.2 3.5 Bank Loans and 0.9 2.5 Others 5.6 1.1 3.2 4.3 0.9 Bonds 2.4 1.6 1Q 2017 2017 2018 2019 2020 2021 After 202
Slide 86: Group total net installed capacity
Investor presentation - 1Q 2017 results Group total net installed capacity: breakdown by technology and geography Solar & Oil&Gas MW Hydro1 Wind Geothermal Nuke Coal CCGT TOTAL Other ST/OCGT Italy 12,415 718 761 97 - 6,478 4,535 2,739 27,742 Iberia 4,764 1,618 - 14 3,318 5,168 5,445 2,417 22,744 Lat
Slide 87: Group total net production
Investor presentation - 1Q 2017 results Group total net production: breakdown by technology and geography Solar & Oil&Gas GWh Hydro1 Wind Geothermal Nuke Coal CCGT TOTAL Other ST/OCGT Italy 3,367 352 1,451 30 - 6,826 1,967 224 14,218 Iberia 1,512 960 - 5 7,184 5,723 1,992 1,603 18,980 Latam 8,581 65
Slide 88: Group total additional capacity
Investor presentation - 1Q 2017 results Group total additional capacity: breakdown by technology and geography Solar & Oil&Gas MW Hydro1 Wind Geothermal Nuke Coal CCGT TOTAL Other ST/OCGT Italy - - - 1 - - - - 1 Iberia - - - - - - - - - Latam - - - - - - - - - Argentina - - - - - - - - - Brazil - -
Slide 89: Renewable projects in execution
Investor presentation - 1Q 2017 results Renewable projects in execution: breakdown by technology and geography1,2 MW Wind Hydro Geothermal Solar Biomass Total Italy - 24 4 - 0 29 Iberia - 6 - - - 6 Latam 568 174 41 987 - 1,770 Europe & North Africa 154 - - - - 154 North & Central America 1,095 - - 1
Slide 90: Renewable projects under construction
Investor presentation - 1Q 2017 results Renewable projects under construction : breakdown by technology and geography1,2 MW Wind Hydro Geothermal Solar Biomass Total Italy 4 0 4 Iberia - Latam 568 170 41 987 1,766 Europe & North Africa - North & Central America 796 1,024 1,820 Sub-Saharan Africa & A
Slide 91: Renewable projects ready to build
Investor presentation - 1Q 2017 results Renewable projects ready to build : breakdown by technology and geography1,2 MW Wind Hydro Geothermal Solar Biomass Total Italy - 20 4 - - 25 Iberia 6 6 Latam 4 4 Europe & North Africa 154 154 North & Central America 299 299 Sub-Saharan Africa & Asia 705 34 73
Slide 92: Global Renewable Energies gross pipeline
Investor presentation - 1Q 2017 results Global Renewable Energies gross pipeline1 Pipeline by technology Pipeline by geography Pipeline by COD 1% 2% 11% 3% 1% 55% 64% 3% 31% 17.8 GW 17.8 GW 17.8 GW 38% 42% 33% 16% Italy Wind Solar Hydro Iberia Latam 2017 2018 >2018 Geo Other Europe & North Africa No
Slide 93: FY 2016 consolidated results Annexes
Investor presentation FY 2016 consolidated results Annexes
Slide 94: Industrial growth: operational targets by business
Investor presentation - FY 2016 results annexes Industrial growth: operational targets by business Networks Retail Renewables Thermal generation End users (mn) Free customer base1 (mn) Managed capacity (GW) Installed capacity3 (GW) Smart meters (mn) Consolidated capacity (GW) Large hydro (GW) +0.7 +
Slide 95: Operational efficiency: focus on opex
Investor presentation - FY 2016 results annexes Operational efficiency: focus on opex Opex evolution1 Opex by business3 -11% 10, 000.0 Networks -6% €/end user 56.8 50.6 9,5 00.0 2015A 2016A (10) 30 (78) Renewables -6% (529) 9,0 00.0 k€/MW 9,081 42.1 39.6 8,5 00.0 2015A 2016A 8,494 -8% Thermal Genera
Slide 96: Industrial growth: capex
Investor presentation - FY 2016 results annexes Industrial growth: capex Total capex (€mn) Growth capex by business line (€mn) +14% +33% 8,842 100 00 700 0 900 0 5,909 7,762 600 0 70 800 0 466 700 0 500 0 4,433 600 0 +33% 5,909 46 -38% 4,433 400 0 752 3,961 500 0 300 0 400 0 +47% 300 0 200 0 2,698 -
Slide 97: CELG-D acquisition
Investor presentation - FY 2016 results annexes CELG-D acquisition Key figures Opex/customer (USD/customer) SAIDI (hours of interruption)1 Valuation multiple (EV/RAB) 3.00 3 million customers 84 Regulatory 45 43.2 2.50 120 .00 reference 2.4x 2.2x 2.00 100 .00 113 30 13 TWh electricity 80.0 0 1.50
Slide 98: Global Renewable Energies: ordinary EBITDA analysis
Investor presentation - FY 2016 results annexes Global Renewable Energies: ordinary EBITDA analysis (€mn) -% -1% 500 0.0 365 80 (457) 450 0.0 3,995 92 (113) 22 4,009 25 400 0.0 350 0.0 4,020 3,987 EGP EGP 1,705 300 0.0 250 0.0 2,015 200 0.0 150 0.0 Large Large 100 0.0 Hydro Hydro 500 .0 2,290 1,994
Slide 99: Italy: ordinary EBITDA analysis by business
Investor presentation - FY 2016 results annexes Italy: ordinary EBITDA analysis by business (€mn) -2% -1% 750 0.0 508 (275) Retal 700 0.0 Retail 1,336 €mn 96 (98) (186) (16) (133) 1,932 €mn Renewables 6,755 6,688 Renewables 650 0.0 6,659 1,315 €mn 6,555 1,040 €mn Generation 600 0.0 Generation 43 €mn
Slide 100: From ordinary EBITDA to net ordinary income
Investor presentation - FY 2016 results annexes From ordinary EBITDA to net ordinary income (€mn) (5,739) 15,174 (2,702) 9,435 (2,135) (1,355) 6,733 3,243 Ordinary D&A EBIT Financial EBT Income Minorities Group EBITDA expenses taxes net ordinary & other 1 income FY 2015 (€bn) 15.0 (5.8) 9.2 (2.4) 6.
Slide 101: Net debt evolution
Investor presentation - FY 2016 results annexes Net debt evolution (€mn) -833 Dec 31, 2015 Dec 31, 2016 continuing Free cash flow Active portfolio continuing operations after dividends management Forex operations 37,545 37,553 1 (91) 841 752 (1,494) Net debt unchanged vs. previous year 1. Net debt r
Slide 102: Debt and financial expenses
Investor presentation - FY 2016 results annexes Debt and financial expenses (€mn) Gross and net debt Net financial expenses on debt -3% -3% 52,760 51,388 10,640 8,326 5,509 2,613 4,575 2,524 37,545 37,553 FY 2015 FY 2016 FY 2015 FY 2016 Net debt Financial receivables Cash Financial expenses reductio
Slide 103: From EBITDA to net income
Investor presentation - FY 2016 results annexes From EBITDA to net income (€mn) 1 FY 2016 FY 2015 FY 2016 FY 2015 ∆ yoy ∆ yoy reported reported ordinary ordinary EBITDA 15,276 15,297 -0.1% 15,174 15,040 0.9% D&A 6,355 7,612 5,739 5,825 EBIT 8,921 7,685 16.1% 9,435 9,215 2.4% Net financial charges (2
Slide 104: Ordinary EBITDA matrix
Investor presentation - FY 2016 results annexes Ordinary1 EBITDA matrix (€mn) Global Therm al Global Infrastructures Global Renew able Services Retail Total Total Generation & Trading & Netw orks Energies & Other FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015 FY 2016
Slide 105: Ordinary EBITDA matrix: new vs old perimeter
Investor presentation - FY 2016 results annexes Ordinary EBITDA matrix (€mn): new vs old perimeter Global Thermal Generation & Trading Global Renewable Energies FY 2016 FY 2015 FY 2016 FY 2015 Global Global Global Global Global Global Therm al Therm al Renew able EGP Renew able EGP Generation Genera
Slide 106: Operational efficiency: opex
Investor presentation - FY 2016 results annexes Operational efficiency: opex (€mn) -9% -6% 9,572 (491) 9,081 8,494 261 8,755 9,40 0 9,40 0.00 3,665 7,40 0 4,603 7,40 0.00 4,393 4,372 Personnel -5% 5,40 0 5,40 0.00 3,40 0 6,541 -7% 3,40 0.00 External costs 5,112 4,752 4,992 1,40 0 1,40 0.00 Capitaliz
Slide 107: Group total net production
Investor presentation - FY 2016 results annexes Group total net production: breakdown by technology and geography Solar & Oil&Gas GWh Hydro1 Wind Geothermal Nuke Coal CCGT TOTAL Other ST/OCGT Italy 16,052 1,298 5,832 122 - 28,145 8,913 551 60,913 Iberia 7,288 3,422 - 167 25,921 21,336 7,425 6,764 72
Slide 108: Regulatory update: Argentina, Brazil and Colombia
Investor presentation: FY 2016 results annexes Regulatory update: focus on Argentina, Brazil and Colombia 2017-19 Previous regulation Proposed framework Approved EBITDA1 impact Expected RAB 2017 ~2 €bn RAB 2.3 €bn WACC 12.5% Potential Temporary tariff based on historical opex Argentina +0.
Slide 109: Argentina regulatory update
Investor presentation - FY 2016 results annexes Argentina regulatory update New regulatory framework VAD (Valor Agregado de Distribución) Enel’s commitments Price cap model Recognition of USD 914 mn 0.9 USD bn capex over 2017-19 Determined in real terms and adjusted WACC 12.46% real pre-tax Improvi
Slide 110: Open Fiber
Investor presentation - FY 2016 results annexes Open Fiber Open Fiber business plan: A&B areas Infratel auctions: C&D areas Padova Milano2 Venezia Merger with Metroweb Open Fiber awarded all available Torino2 Bologna2 effective since April 2016 lots in the first tender Genova Firenze Perugia 3.9 €bn
Slide 111: Appendix: Focus on global business lines and countries
Investor presentation Appendix Focus on global business lines and countries
Slide 112: Global Infrastructure and Networks
Investor presentation Global Infrastructure and Networks
Slide 113: Positioning and key figures
Investor presentation Positioning and key figures Italy (85%)1 224 TWh distributed energy Key figures 2016A Argentina (18%) 1 31.5 mn end-users Iberia (42%) 1 19 TWh distributed energy Distributed energy (TWh) 426 2.5 mn end-users 106 TWh distributed energy 12 mn end-users End users (mn) 62.2 Brazil
Slide 114: Regulatory scenario: Europe
Investor presentation Regulatory scenario: Europe Italy 5.6% 2017 WACC Iberia 6.5%1 real pre-tax Romania 7.7% Italy 2024 Next regulatory cycle Iberia 2020 Romania 2019 Regulatory frameworks 40% of Group EBITDA RAB ~ 32 €bn already set safe and stable stable over the plan Long term stability 113 1. N
Slide 115: Regulatory scenario: Latam
Investor presentation Regulatory scenario: Latam Argentina 12.5% Chile 10% 2017 WACC Brazil Ampla 11.4% Colombia 13.7%1 real pre-tax Brazil Coelce 12.3% Peru 12% Argentina 2017 Chile 2017 Next regulatory cycle Brazil Ampla 2018 Colombia 2017 Brazil Coelce 2019 Peru 2018 Argentina/Brazil (Ampla) appr
Slide 116: Infrastructure digitalization
Investor presentation Infrastructure digitalization Italy Iberia Latam Romania Degree of digitalization Technologies(AS-IS) Italy Iberia Latam Romania 0.4 1.1 0.2 Basic Smart meter 100% 75% Pilots 5% Automated primary 100% 100% 95% 95% substations 1.7 0.1 Intermediate Customers/Remote control 260 96
Slide 117: The industrial rational of network digitalization
Investor presentation The industrial rational of network digitalization RES Integration: Power requested to HV operator Italy Quality of service Improvement: Best case Italy GW 30 GW 650 k connections 140 .3 128 distributed generation 29 to prosumers Smart metering SAIDI1 -66% 30 120 .3 €/end users
Slide 118: Efficiency
Investor presentation Efficiency Cash cost evolution (€bn) Cash cost/end users nominal (€) Cash cost/end users real (€) 8.0 0 120 120 7.0 0 -1% 100 -4% 100 -12% 6.0 0 0.4 (0.5) 80 80 5.0 0 4.7 4.7 76.1 72.9 76.1 4.0 0 1.7 1.6 60 60 67.2 3.0 0 40 40 2.0 0 3.1 3.1 20 20 1.0 0 - 0 0 2016E CPI & Efficie
Slide 119: Efficiency – quality of services
Investor presentation Efficiency – quality of services Minutes of interruption % Losses Europe % Losses Latam 10 10 9 -4% 9 -15% 100.0% 8 8 7 7 95% 6 6 85% 5 5 4 4 84% 3 3 2 2 67% 1 1 62% 0 0 2016 FCT 2016E 2017 2017E 2018 2018E 2019 2019E 2016E 2019E 2016E 2019E Italy / Iberia Chile / Colombia Bras
Slide 120: Financial targets
Investor presentation Financial targets EBITDA and total capex (€bn) Italy, Iberia: distribution tariff reduction, partially offset by growth projects and cost reduction +13% 2017 – 0.3 €bn Latam: regulation improvement in Argentina (RTI) and Ampla Crash program in Brazil Romania: distribution tarif
Slide 121: Global Renewable Energies
Investor presentation Global Renewable Energies
Slide 122: Positioning and key figures
Investor presentation Positioning and key figures Old Large Key figures 2016A perimeter hydro Capacity1 (GW) 35.9 11.0 24.9 Production (GWh) 86.0 36.1 49.9 Old Large Key financials (€bn) 2016 perimeter hydro EBITDA 4.0 2.0 2.0 Opex 1.4 0.8 0.6 Maintenance capex 0.3 0.2 0.1 Countries of presence Coun
Slide 123: Equipment value maximization
Investor presentation Equipment value maximization 1.2 Wind turbine cost by delivery date & LCOE1 evolution 60. 0 Solar equipment cost2 by delivery date & LCOE1 evolution 65 1.2 60 1.01 55. 0 1.1 1.03 50. 0 1.0 55 1.0 50 0.93 45. 0 0.8 0.71 46 43 -30% -10% 48 41 1 45 0.9 40. 0 39 1 37 0.6 40 35. 0 0
Slide 124: Engineering and technological leadership
Investor presentation Engineering and technological leadership Wind LCOE1 evolution Solar LCOE1 evolution 120 .0% 120 .0% 110 .0% 110 .0% 100 .0% 100 .0% 90. 0% 100% 15% 90. 0% 100% 14% 1 1 80. 0% 10% 80. 0% 15% 75% 70. 0% 70. 0% 60. 0% 60. 0% 71% 50. 0% 50. 0% 40. 0% 40. 0% 2014 Market Enel 2019 20
Slide 125: Operational efficiency: key performance indicators
Investor presentation Operational efficiency: key performance indicators1 80. 0 Hydro cash cost (k€/MW) 0.0 9 80. 0 Wind cash cost (k€/MW) 0.0 9 100 .0 Solar cash cost (k€/MW) 0.0 9 180 .0 Geothermal cash cost (k€/MW) 0.0 8 75. 0 90. 0 0.0 7 0.0 7 0.0 7 0.0 6 160 .0 70. 0 5.0% 70. 0 5.0% 80. 0 4.0%
Slide 126: Asset value maximization: in execution capacity returns
Investor presentation Asset value maximization: in execution capacity returns Brazil South Africa Mexico Peru USA Technology Wind / PV Wind Solar PV Wind / PV / Hydro Wind Capacity (MW) 1,300 800 1,000 326 1,000 Production (GWh) 3,800 3,000 2,250 1,200 4,100 Capex (USD bn) <2 <1.1 <0.9 <0.4
Slide 127: Engineering and Construction
Investor presentation Engineering and Construction Construction capacity1 2013-19 (GW) Average projects size 2013-19 (MW) 2.5x 10x 200 .0 2x 2.3 2.1 190 1 165 150 .0 1 38% 46% 100 .0 0.9 100 70 80 62% 54% 50. 0 100% 20 0.0 2013-15A 2016A 2017-19E 2013-15 2016 2017-19 Consolidated BSO Wind S
Slide 128: Industrial growth: 2017-19 capacity additions and growth capex
Investor presentation Industrial growth: 2017-19 capacity additions and growth capex Capacity additions1 by technology Growth capex by technology Growth capex by geography 35% 21% 23% 6% 8% 5% 2% 15% 6% 3.5 GW 5.2 €bn 11% 5.2 €bn 3% 60% 57% 48% Italy Iberia Wind Solar Hydro Geo Wind Solar Hydro Geo
Slide 129: Financial targets
Investor presentation Financial targets EBITDA and total capex (€bn) Europe: price increase partially offset green certificates expiration in Italy Latam: growth in Brazil and Chile +15% 2017 – 4.2 €bn North & Central America: assets deconsolidation - BSO Africa & Asia: strong growth due to installe
Slide 130: Global Thermal Generation
Investor presentation Global Thermal Generation
Slide 131: Positioning and key figures
Investor presentation Positioning and key figures1 2016A net production by technology 2016A net production by geography Key figures 2016A Installed capacity (GW) 43.5 30% 28% 21% Net production (TWh) 142 19% 142 TWh 142 TWh Financials (€bn) 26% 25% EBITDA2 1.2 51% Cash cost 2.5 Coal CCGT Oil & Gas I
Slide 132: Capacity strategy
Investor presentation Capacity strategy 120 Key levers Installed capacity1 (GW) EBITDA per MW 2 (k€/MW) 100 Spending allocation based -39% +36% 80 on plant profitability 53.4 60 Asset rotation opportunities, 43.5 leveraging on strategic positioning 21.0 32.7 40 12.3 ~45 7.2 ~34 16.2 15.1 ~33 14.1 20
Slide 133: Operational performance
Investor presentation Operational performance Availability CCGT start up time1 CCGT minimum load2 (%) (min) (% nominal load) +5% 240 .00 100 % 220 .00 88% 89% 90% 200 .00 220 86% 80% 180 .00 60% 160 .00 140 .00 40% 48% 120 .00 100 .00 27% 20% <20% 80. 00 100 0% 60. 00 2016E 2017E 2018E 2019E 2016E 2
Slide 134: Environmental performance
Investor presentation Environmental performance New challenges @2020 Thermal Gen. Best technologies assessment worldwide for CO2 -5% environmental performances improvement Base year 2007 Constant emissions’ levels reduction through - 30% investments in Italy, Spain, Chile, Colombia NOx Base year 201
Slide 135: Financial targets
Investor presentation Financial targets EBITDA1 and capex2 (€bn) Investments in coal environmental improvements +8% especially in Italy, Iberia and Chile, sustained by internal profitability 1.4 1.3 1.3 1.2 Decommissioning program in Italy impacting non 1.2 1.1 recurrent spending throughout the Busi
Slide 136: Global Trading
Investor presentation Global Trading
Slide 137: Delivery on gas contract renegotiation
Investor presentation Delivery on gas contract renegotiation Price review impact (€bn) Portfolio evolution (bcm, %) 3.0 2.5 25 26 26 100 % 3% 5% 14% 18% 2.0 80% 22% 1.3 1.5 60% 37% 1.0 0.7 1.0 40% 83% 1.0 73% 0.5 20% 45% 0.6 0.0 0% 2016-19 old 2016-19 new 2017E 2019E 2021E Already negotiated To be n
Slide 138: US LNG gas portfolio
Investor presentation US LNG gas portfolio Portfolio evolution (bcm) Typical long term LNG contracts exposure 4.3 5.0 4.5 4.0 0.5 1 Commodity Flexibility 3.5 No “take or pay” 3.0 2.5 2.9 obligation 2.0 1.4 2 Shipping 1.5 0.7 1.0 0.5 0.5 0.7 0.9 0.9 0.0 3 Liquefaction No flexibility 2017 2019 2021 Sa
Slide 139: Group energy management
Investor presentation Group energy management Gross margin breakdown Gross margin €bn 13.0 12.8 2016E 74% 2% 24% 12.6 12.4 ~12.6 ~12.6 12.2 12.0 2015A 77% 1% 22% 11.8 ~12.1 11.6 11.4 2014A 82% 2% 16% 11.2 11.0 2014A 2015A 2016E Generation Trading Retail 1 Capturing benefits from natural hedging alon
Slide 140: Italy
Investor presentation Italy
Slide 141: Positioning and key figures
Investor presentation Positioning and key figures 2016 EBITDA 2016 number of customers Key figures 2016A Total Free Distributed energy (TWh) 224 customers customers RAB (€bn) 20 -2% 28% End users (mn) 31.5 15% 15% 2% 40% 6.6 €bn 30.7 mn 11.1 mn Customers (mn) 30.7 60% 85% Net production1 (TWh) 60.9
Slide 142: Retail: Italian power market
Investor presentation Retail: Italian power market Customers (mn) Energy sold (TWh) 350 .0 50. 0 300 .0 223.4 282.5 40. 0 13.7 36.7 250 .0 3.6 7.3 30. 0 199.7 1 200 .0 23.0 10.1 1 219.9 3.7 150 .0 20. 0 29.4 100 .0 59.1 10. 0 19.3 23,7 50. 0 20.2 38.9 62.6 0.0 0.0 Regulated Free Total Regulated Free
Slide 143: Retail: Enel positioning and track record
Investor presentation Retail: Enel positioning and track record 70. 0% 4.0 3.0 12. 0% 58. 0 Enel power customers (mn) 3.5 EBITDA evolution (€bn) 16. 0% EBIT evolution (€bn) 10. 0% 60. 0% 2.5 51.0% 8.0 % 49.3% 48. 0 8.6% 5.7% 3.0 11. 0% 50. 0% 2.0 6.0 % 2.5 4.1% 38. 0 40. 0% 1.9 6.0 % 4.0 % 30.8 30.7
Slide 144: Retail: Enel business evolution
Investor presentation 250 Retail: Enel business evolution 200 4.0 Energy sold (TWh) – Unitary Margin index1 3.5 Commodity business EBITDA2 (€bn) 150 Market liberalization +6% 3.0 100 75 2.5 100 2.0 1.5 1.8 1.9 1.9 1.9 94 50 1.0 82 52 56 0.5 0 0.0 2016A 2017E 2018E 2019E 2016A 2017E 2018E 2019E Free
Slide 145: Supply and demand balance
Investor presentation Supply and demand balance 2016E (TWh) 2019E (TWh) 70. 00 62 100 .00 94 90. 00 Regulated 10% 52 60. 00 64 80. 00 50. 00 70. 00 40% 30% Regulated 1% Business Price driven 60. 00 40. 00 57% Price driven 50. 00 39% 30. 00 Business 40. 00 60% 30. 00 60% Mass Market 20. 00 Spread
Slide 146: Digitalization: operations and customer data
Investor presentation Digitalization: operations and customer data Internal processes Customer data Main targets at 2019 Accomplished results Accomplished results -50% process lead time Bad debt management Campaign automation Digital training 100% digitalized Forecasting based automation Dunning pro
Slide 147: Digitalization: customers engagement and new services
Investor presentation Digitalization: customers engagement and new services Customer relantionship Development of new product and services Main targets at 2019 5.0 Achievements Achievements 4.5 Digital platform members Contacts: new website and co-browsing 4.0 3.5 (mn customers) Sales and post sales
Slide 148: Operational efficiency
Investor presentation Operational efficiency 35. 0 33. 0 Cost to serve (€/customer) Cost to acquire -3% 31. 0 140 29. 0 120 100 -12% 27. 0 80 25. 0 Sales 60 113 110 40 23. 0 (€/activated customer) 20 0 21. 0 19. 0 2016E 2019E 17. 0 20 18 20. 0 15. 0 18. 0 16. 0 -18% 14. 0 2016E 2019E 12. 0 Marketing
Slide 149: Financial targets
Investor presentation Financial targets EBITDA and capex (€bn) 2017-19E Cash flow generation (€bn) +14% 14 8.0 7.0 7.5 12 13.3 3.7 6.8 7.1 6.0 6.6 10 5.0 8 9.6 2.7 4.0 3.0 6 6.9 4 2.0 2.0 2.3 2.1 1.0 1.9 2 0.0 0 2016A 2017E 2018E 2019E FFO Maintenance FFO after Net growth Total EBITDA Capex capex ma
Slide 150: Iberia
Investor presentation Iberia
Slide 151: Positioning and key figures
Investor presentation Positioning and key figures1 2016A EBITDA 2016A Power and gas customers Key figures 2016A Capacity (GW) 22.7 22% 18% 49% RAB (€bn) 11.2 18% 10% 11.0 mn 1.5 mn 3.6 €bn Customers (mn) 12.5 Power Gas 51% 82% Net production (TWh) 72.3 50% Financials (€bn) EBITDA 3.6 Networks Renewa
Slide 152: Retail: customer base and unitary margin evolution
Investor presentation Retail: customer base and unitary margin evolution Power market1 Gas market2 EBITDA evolution3 (€bn) 120 .00 +6% 90% 100 .00 +13% 90% 1.20 00 +14% 80% 80% 110 .00 90.0 0 1.00 00 70% 70% 107 109 100 .00 103 105 60% 80.0 0 60% 0.80 00 90.0 0 50% 70.0 0 78 79 50% 0.60 00 40% 73 40
Slide 153: Digitalization as a driver for efficiency, quality of service and VAS
Investor presentation Digitalization as a driver for efficiency, quality of service and VAS Key drivers Leverage Cost to serve (€/customer)1 Accelarate use of electronic bill (e-factura) to 16 -7% achieve digital engagement and reduce postal 15 service cost 14 3.7 mn digital customers in 2019 (fr
Slide 154: Financial targets
Investor presentation Financial targets EBITDA and capex (€bn)1 2017-19E Cash flow generation (€bn) +6% 4.0 3.5 3.8 8.0 2.0 3.0 3.6 3.4 3.6 2.5 6.0 2.2 2.0 3.8 1.5 1.0 1.5 1.4 0.5 1.2 1.3 0.0 2016A 2017E 2018E 2019E FFO Maintenance FFO after Net FCF capex maint. growth EBITDA Capex capex capex Stron
Slide 155: Latin America
Investor presentation Latin America
Slide 156: Positioning and key figures
Investor presentation Positioning and key figures1 2016A EBITDA by business 2016A EBITDA by country Key figures 2016A Installed capacity (GW) 18.9 12% 8% 16% RAB (€bn)2 8.4 18% 39% Distributed energy (TWh) 78.5 3.6 €bn 27% 3.6 €bn End users (mn) 15.9 46% 35% Key financials (€bn) 2016 EBITDA 3.6 Arge
Slide 157: Positioning and key figures
Investor presentation Positioning and key figures 2016A Net production by technology 2016A End users by country 6% Hydro 9% 16% Argentina Renewables 19% Brazil 29% 62.2 TWh 53% Oil & Gas 15.9 mn Chile CCGT 12% Colombia 7% 44% 5% Coal Peru 2016A Net production by country 2016A Distributed energy by c
Slide 158: Latam restructuring: efficiencies
Investor presentation Latam restructuring: efficiencies1 €mn 20162 2019 OLD 2019 NEW NEW vs OLD OPEX 115 279 296 +6% SG&A 24 47 69 +47% Cash Pooling 4 14 14 - Tax 45 45 45 - Total 188 385 424 10% Improving efficiency 2019 target 1. Not including renewables 157 2. Exchange rate €/USD 2016: 1.11
Slide 159: Regulatory scenario
Investor presentation Regulatory scenario Chile Peru Argentina Brazil Colombia 13.7%1. Future 2016 WACC Ampla 11.4% 10.0% 12.0% 12.5%. WACC pending to real pre tax Coelce 12.3% be defined 5 years Ampla Regulatory cycle 4 years 4 years 5 years 5 years 4 years Coelce 2018 Ampla Next regulatory cycle 2
Slide 160: Regulatory scenario: capex and RAB evolution
Investor presentation Regulatory scenario: capex and RAB evolution WACC RAB (€bn) EBITDA and capex: focus on networks (€bn) +23% +50% 10.3 10. 0 8.4 2.4 2.5 8.0 12.5%1 2.01 2.0 2.5 2.1 11.4%2 1.8 6.0 2.0 1.5 1.6 12.0% 1.3 1.4 0.9 4.0 1.0 1.2 1.2 1.1 13.7%3 1.7 2.1 0.9 2.0 0.5 10.0% 1.8 1.9 0.0 0.0 2
Slide 161: Retail: positioning & market liberalization
Investor presentation Retail: positioning & market liberalization 2016 Total free market sales (TWh) Enel 2016 Free energy sold (TWh) From (2016) market share To (2019) (% of Total) 0.2 5% 2.7 Argentina 3% 4 128 132 2.3 2% 10.4 Brazil 23% 121 416 537 5.6 17% 7.2 Chile 50% 34 34 68 3.8 18% 4.5 Colomb
Slide 162: Industrial growth 2017-2019
Investor presentation Industrial growth 2017-2019 Total capex Growth capex by business Growth capex by country 4% 14% 13% 32% 11% 43% 7.0 €bn 4.8 €bn 4.8 €bn 48% 36% 68% 26% 5% Networks Renewables Argentina Brazil Chile Maintenance Growth Thermal generation Retail Colombia Peru Growth capex concentr
Slide 163: Financial targets
Investor presentation Financial targets EBITDA and capex (€bn) 2017-19E Cash flow generation (€bn) +42% 5.1 8.8 4.7 2.2 4.2 3.6 6.5 3.0 3.0 4.8 2.0 2.0 1.8 2016 A 2017 E 2018E 2019E FFO Maintenance FFO after Net growth FCF capex maint. capex capex EBITDA Capex Growth and efficiencies driving a stron
Slide 164: Disclaimer
Investor presentation 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
Slide 165: Contact us
Investor presentation Contact us Luca Passa Head of Group Investor Relations Elisabetta Ghezzi Investor Relations Holding Donatella Izzo Investor Relations Sustainability and Other Countries Email Marco Donati investor.relations@enel.com Investor Relations Reporting and Corporate Governance Phone +3