Enel Spa · MIL:ENEL
Enel Spa — Investor Presentation (September 2018)
181 slides from Enel Spa's investor presentation, September 2018
Slide 1: Investor presentation 2018-20 strategic plan
Investor presentation 2018-20 strategic plan September 2018
Slide 2: Table of contents
Investor presentation Table of contents 2018-20 strategic plan - Sector trends and plan overview Page 2 2018-20 strategic plan - Key financials Page 19 2018-20 strategic plan annexes Page 42 2018-20 strategic plan annexes – ESG deep-dive Page 52 2018-20 strategic plan annexes – Business lines deep-d
Slide 3: Sector trends and plan overview
Investor presentation 2018-20 strategic plan Sector trends and plan overview
Slide 4: Sector trends (1/2)
Investor presentation Sector trends (1/2) Urbanization rate1 (%) Primary energy mix2 (‘000 Mtoe) Urbanization trend Decarbonization 13.7 14.1 90.0 0 16.0 0 80.0 0 By 2050, 6.3 bn people will live … 14.0 0 85 14% … 70.0 0 By 2040, ~40% of generation ~40% 12.0 0 in cities 60.0 0 78 10.0 0 50.0 0 63 wi
Slide 5: Sector trends (2/2)
Investor presentation Sector trends (2/2) Small scale PV and demand response Small scale PV (GW)1 Demand response (GW)1 Distributed generation and demand response will +1,279 +264 drive the increase in number of “prosumers” 1,387 319 330 .00 1,20 1.00 280 .00 Low cost and low-carbon technologies wil
Slide 6: Enel integrated model fit for digitalized, low carbon world
Investor presentation Enel integrated model fit for digitalized, low carbon world Digital infrastructure platform Distributed generation and quality of service Zero-emission generation growth engine Cash flow generation and global Driver of access to energy risk mitigation Key player in the mix tran
Slide 7: Integrated model fit for digitalized, low carbon world
Investor presentation Integrated model fit for digitalized, low carbon world Electrification, Storage, Decarbonization Urbanization Demand Response Enel 2020 targets Enel 2020 targets Enel 2020 targets NEW ~48 GW renewables (+7.8 GW) 600 MW storage capacity ~67 mn end-users ~36 GW thermal (-
Slide 8: Enel strategic pillars
Investor presentation Enel strategic pillars Digitalization Customer focus Operational efficiency Industrial growth Group simplification & active portfolio management Communities and people for a data-driven Company for more shared value Sustainable long-term value creation 7
Slide 9: Digitalization
Investor presentation Digitalization 2018-20 digitalization capex Key levers for digitalization Asset 13% 6% 5.3 €bn Customer Data People Cyber security driven Cloud 81% Platform Asset Customer People Agile Agile operating model maximizing speed and efficiency through optimal use of data 8
Slide 10: Customer focus: commodity retail
Investor presentation Customer focus: commodity retail Free customers1 (mn) Power sold in free market (TWh) Year +78% 2016 287 Total 2 Free customers growing in all countries sales 267 255 34.8 Total 244 production Liberalization in Italy: opportunity to 35 239 3.6 213 increase volumes and clients +
Slide 11: Customer focus: e-Solutions 2020 targets
Investor presentation Customer focus: e-Solutions 2020 targets e-Industries e-Mobility e-Home e-City Public infrastructure Maintenance Demand Response Smart Lighting (GW generating revenues) (Public charging and repair (Light Points) stations installed) (Customer base) ~9 k >2 mn 3 mn >10 GW >100% C
Slide 12: Operational efficiency
Investor presentation Operational efficiency Maintenance capex (€bn)1 Opex (€bn) Cash cost (€bn) 10 20 20 9 -17% 18 -2% 18 -6% 8 16 16 7 14 14 6 12 12 5 10 10 4 8 8 11.0 10.3 3 6 8.6 8.3 6 2 4 4 1 2.4 2.0 2 2 0 0 0 2017 2020 2017 2020 2017 2020 Digitalization enables greater operational efficiency 1
Slide 13: Industrial growth: 2018-20 capex plan
Investor presentation Industrial growth: 2018-20 capex plan Total gross capex (€bn) Growth capex by business line1 (€bn) Growth capex by geography1 (€bn) 24.6 14.6 14.6 25 24.1 13.8 13.8 14 0.6 0.8 14 0.7 0.7 0.5 +6% 0.8 95% 95% 12 12 3.7 20 5.3 13.8 14.6 10 10 Mature 15 8.3 1.7 markets 8 8.3 8 BS
Slide 14: Industrial growth: operational targets by business
Investor presentation Industrial growth: operational targets by business Networks Retail Renewables Thermal generation3 End users (mn) Free customer base1 (mn) Managed capacity (GW) Installed capacity(GW) Smart meters (mn) Power sold2 (TWh) Other renewables (GW) Smart meters 2.0 (mn) Large hydro (GW
Slide 15: Group simplification & active portfolio management
Investor presentation Group simplification & active portfolio management Simplification Minority reduction From 69 to 53 # companies in South America Romania Delivery Sale of minority stakes in Electrogas and Peru Bayan To below 30 # companies in South America Chile integration of renewable assets a
Slide 16: Group simplification & active portfolio management: the new plan
Investor presentation Group simplification & active portfolio management: the new plan 2017 program (€bn) 2018-20 program (€bn) 2018-20 use of funds (€bn) 6.00 3.00 5.00 ~4.7 Minority buy-out & 2.3 2.50 ~2.1 ~2.0 4.00 share buy back ~3.2 2.00 3.00 1.50 Acquisitions Acquisition focused 1.6 1.00 1.4
Slide 17: Communities and people
Investor presentation Communities and people Local communities (mn beneficiaries) Our people 20171 20202 2020 Talent attraction and retention 2x High-quality, inclusive and fair 100% of people involved Appraise performance of education 0.6 0.8 From 99% of people appraised 0.4 people we work with2 95
Slide 18: Innovation
Investor presentation Innovation Key highlights +2,300 startups scouted Moscow +100 active projects +30 startups scaled Madrid San Catania Tel Aviv 18 agreements Francisco with Venture Capital Funds 21 innovative partnerships globally Rio de Janeiro 4 Community Santiago (Blockchain, Storage, Drones,
Slide 19: Shareholder remuneration
Investor presentation Shareholder remuneration Dividend policy Minimum DPS (€/sh) +33% +17% NEW 0.3 0.28 0.25 65% 70% 0.2 50% 55% 0.21 0.18 0.15 0.1 0.16 0.05 2015 2016 2017 2018-20 2015 2016 2017 2018 DPS based on pay out 0.17 0.237 0.28 Confidence on strategy delivery and revised plan allows impro
Slide 20: Key financials
Investor Presentation 2018-20 strategic plan Key financials
Slide 21: Enel transformation and 2020 targets
Investor presentation Enel transformation and 2020 targets Profitability & cash generation Leverage Returns 0.7 90% 4.5 0 27% 29% 31% 0.4 14% 12.3% 13.1% 14% >65% 25% 27% 10.5% 10.7% 11.1% 65% 80% 4.0 0 0.3 0.6 64% >65% >65% 12% 13% 13.0% 70% 3.5 0 0.3 0.5 30% 10% 12% 12.3% 60% 3.0 0 0.2 0.4 8% 11%
Slide 22: Digitalization
Investor presentation Digitalization 2018-20 cumulative digitalization capex 2018-20 cumulative benefits1 Gross Opex EBITDA Margin Plan 2017-19 Plan 2018-20 Asset 3.9 €bn 4.3 €bn 1.0 €bn (0.3) €bn 1.3 €bn 13% 6% 5.3 €bn Customer 0.7 €bn 0.7 €bn 0.2 €bn (0.2) €bn 0.4 €bn 81% People 0.1 €bn 0.3 €bn 0.
Slide 23: Digitalization
Investor presentation Digitalization Networks Thermal generation2 Renewables2 Retail Networks automation % capacity with IoT % capacity with IoT Cost to serve reduction 65. 00 Smart meters 60. 00 120 .00 100 .00 90. 00 64% -30% 63. 00 100 .00 80. 00 50. 00 61. 00 +20mn 70. 00 95% 80. 00 59. 00 40. 0
Slide 24: Customer focus: global retail and e-Solutions
Investor presentation Customer focus: global retail and e-Solutions EBITDA (€bn) 6.0 Key drivers Key figures +13.9 mn power customers 5.0 +37% Growth of retail customer base worldwide +0.8 mn gas customers 4.0 3.3 3.0 Higher focus on corporate 33% increase in power volumes 0.4 0.3 3.0 2.4 customers
Slide 25: Customer focus: global retail
Investor presentation Customer focus: global retail Power unitary margin EBITDA retail power and gas (€bn)1 Power sold in free market (TWh) in free market (€/MWh) 3.5 +16% +33% -% 12.0 0 3 2.9 10.0 0 8.00 ~12 ~12 0.2 250 .00 2.4 6.00 2.5 -0.1 4.00 0.6 200 .00 234 2.00 0.5 > 70% - 2017 2020 2 power 1
Slide 26: Customer focus: Italian retail
Investor presentation 250 Customer focus: Italian retail 200 Enel supply and demand balance 2017 Enel power sold Enel supply and demand balance 2020 (TWh) (TWh) 150 Market liberalization (TWh) Enel free 26% 30% 85 market share (vol.) 90. 00 80. 00 1.2 0 54 63 100 70. 00 60 1.0 0 60. 00 50. 00 0.8 0
Slide 27: Customer focus: Italian retail
Investor presentation Customer focus: Italian retail Power unitary margin EBITDA (€bn)1 Power sold in free market (TWh) in free market (€/MWh) 100% 100% B2B -40% +8% +35% 25.0 0 60% B2C 100 .00 20.0 0 90.0 0 85 15.0 0 ~21 ~21 10.0 0 80.0 0 5.00 2.1 2.1 63 30 2.0 70.0 0 2.0 - 60.0 0 2017 2020 50.0 0
Slide 28: Operational efficiency: focus on opex
Investor presentation Operational efficiency: focus on opex Opex evolution (€bn)1 Opex by business3 -18% Networks -3% €/end user 51.5 42.4 2017 2020 0.1 Renewables -10% 0.4 0.3 (1.2) k€/MW 39.0 35.2 8.6 2017 2020 0.5 from 8.3 -1% digitalization Thermal Generation4 35.1 35.6 k€/MW 2017 2020 -32% Reta
Slide 29: Industrial growth: capex and growth EBITDA reconciliation
Investor presentation Industrial growth: capex and growth EBITDA reconciliation 2017-19 total capex (€bn) 30 2017-19 cumulated growth EBITDA (€bn) 6 25 24.1 24.1 5 20.9 3.2 3.2 3.2 4.0 20 4 13.8 0.9 3.1 15 12.4 12.4 10.6 3 BSO capital BSO capital gains and gains and 10 O&M fees 2 O&M fees 1.8 5 7.2
Slide 30: Industrial growth: focus on growth capex and growth EBITDA
Investor presentation Industrial growth: focus on growth capex and growth EBITDA Growth capex by business line1 (€bn) 2018-20 cumulated growth EBITDA1 (€bn) +6% 14.6 +19% 13.7 4.0 3.6 14 0.6 0.8 +33% 0.8 0.7 3.5 3.12 12 0.8 +33% 0.6 3.0 10 < 0.1 0.1 2.5 8.3 -% 1.1 -% 8 8.3 2.0 1.1 6 BSO 3.4 BSO 3.2
Slide 31: Industrial growth: focus on capex addressed
Investor presentation Industrial growth: focus on capex addressed1 2018-20 growth capex Capex addressed by business By year2 Growth EBITDA by year (€bn) 3 2018E 88% 2.5 2.3 44% 35% 2019E 54% 35% 2 1.7 14.6 €bn 8.2 €bn 61% 1.5 1.1 3.6 2020E 30% 1.8 cumulated 1 0.6 1.2 5% 16% 3% 0.5 1% 0.5 0.5 0.5 0.5
Slide 32: Macro scenario: revised assumptions for commodities and prices
Investor presentation Macro scenario: revised assumptions for commodities and prices Electricity demand South America 70. 00 Italy power price (€/MWh) Spain power price (€/MWh) 5.0 0% (change YoY) 65. 00 53.9 52.5 80. 00 52.2 51.4 3.60% 4.0 0% 3.40% 60. 00 average forward 70. 00 average forward 55.
Slide 33: What has changed
Investor presentation What has changed Macro assumptions (€bn) Managerial actions (€bn) Yearly impact on average EBITDA Yearly impact on average EBITDA Minorities buyout Higher efficiency and margins -0.1 Demand +0.1 HIGHER EARNINGS driven by higher digitalization capex ACCRETION Higher growth capex
Slide 34: EBITDA evolution
Investor presentation EBITDA evolution 25. 0 22. 0 Ordinary EBITDA (€bn) 2017-20 ordinary EBITDA evolution (€bn) 23. 0 20. 0 +19% 21. 0 (0.2) 1.2 0.6 (0.7) 1.8 19. 0 18. 0 2017 17. 0 18.2 18.2 15.6 2017 result 15.6 17.2 15. 0 15.5 16. 0 result 16.2 13. 0 14. 0 15.5 11. 0 9.0 12. 0 7.0 10. 0 5.0 2017
Slide 35: EBITDA evolution by business line and country
Investor presentation EBITDA evolution1 2017-20 EBITDA evolution by business line and country (€bn) 0.3 (0.1) 0.5 0.1 0.5 1.4 18.2 2017 result 15.6 15.5 2017 target Global Global Thermal Global Retail e-Solutions Other 2020 Infrastructure Generation Renewable & Networks & Trading Energies 1.6 (0.1)
Slide 36: Industrial growth: financial targets by business
Investor presentation Industrial growth: financial targets by business Networks Customers Renewables Thermal generation2 EBITDA CAGR1 +6% EBITDA CAGR1 +10% EBITDA CAGR1 +5% EBITDA CAGR1 +2% €bn 35. 00 10. 00 20. 00 8.0 0 €bn 30. 00 9.0 0 8.0 0 0.8 18. 00 16. 00 €bn 7.0 0 €bn 6.0 0 8.2 25. 00 7.0 0 1
Slide 37: Key financials: Group net income evolution
Investor presentation Key financials: Group net income evolution Group net ordinary income (€bn) 2017-20 group net ordinary income evolution (€bn) 7.0 6.5 9.0 +50% 8.0 6.0 0.8 (0.9) 5.5 7.0 2.7 (0.2) 0.1 (0.8) 6.0 5.4 5.0 5.0 4.8 4.5 2017 5.4 result 4.0 3.7 2017 4.0 result 3.7 4.1 4.7 3.0 3.6 3.5 3.
Slide 38: Financial strategy
Investor presentation Financial strategy 2017 actions completed (€bn) Financial strategy for 2018-20 (€bn) 7 Yankee bonds issuance Bond refinancing 5.7 including green bonds program 1.25 Green bond issuance 2.7 Hybrid refinancing 0.5 EIB financing for Open Meter 9.4 Renegotiation of credit line 1.5
Slide 39: Financial plan and strategy
Investor presentation Financial plan and strategy Gross and net debt (€bn) Net financial expenses on debt (€bn) -4% -9% 4.0 5.0% 3.5 4.7% 4.7% 5.0 % ~51.3 ~50.8 ~50.8 ~49.1 3.0 4.5% 4.5% ~7.0 ~5.0 ~5.4 ~5.2 4.5 % ~6.9 ~6.0 ~5.9 ~5.6 2.5 4.0 % 2.3 2.3 2.0 1.5 2.2 2.1 3.5 % ~37.4 ~39.8 ~39.5 ~38.3 1.0
Slide 40: 2018-20 cumulated cash flow
Investor presentation 2018-20 cumulated cash flow (€bn) 60. 0 (3.3) 50. 0 (7.0) 51.7 (7.2) 40. 0 (6.7) 30. 0 (14.6) 34.2 20. 0 27.5 (3.3) 3.4 (12.3) 10. 0 13.0 0.7 (1.5) 0.0 Ordinary ∆ Provisions1 Income Financial FFO Maintenance FFO after Growth capex 2 Connections Proceeds form FCF Dividends Net F
Slide 41: Group financial targets
Investor presentation Group financial targets CAGR (%) 2017 2018 2019 2020 2017-20 Ordinary EBITDA (€bn) 15.6 16.2 17.2 18.2 ~+5% Net ordinary income (€bn) 3.7 4.1 4.8 5.4 ~+13% Minimum dividend per share (€) 0.21 0.28 - - - Pay-out ratio 65% 70% 70% 70% +5 p.p. Implicit DPS (€) 0.237 0.28 0.3
Slide 42: Closing remarks
Investor presentation Closing remarks Continued excellent execution in strategic pillars Well positioned for digitalized, low carbon world Increased financial and non- financial targets Operating model driving long-term shared value for all our stakeholders 41
Slide 43: Annexes
Investor presentation annexes 2018-20 strategic plan
Slide 44: Assumptions: commodities, prices, macroeconomics and FX
Investor presentation annexes Assumptions: Commodities, prices, macroeconomics and FX 2017 2018 2019 2020 Scenario New Plan Actual New Plan Old Plan New Plan Old Plan New Plan Old Plan Brent $/bbl 53 55 57 52 60 55 65 - Coal $/ton 83 84 68 52 65 53 62 - Gas TTF €/MWh 17 17 16 15 16 16 17 - CO2 €/ton
Slide 45: EBITDA targets by country and global business line
Investor presentation annexes EBITDA1 targets by Country and Global Business Line2 (€bn) 2017 2018 2019 2020 Italy 6.9 7.0 7.4 7.8 Global Thermal Generation 0.2 0.1 0.1 0.3 Global I&N 3.5 3.5 3.7 3.7 Global Renewable Energies 1.1 1.2 1.2 1.3 Retail 2.0 2.0 2.1 2.1 e-Solutions 0.0 0.0 0.1 0.1 Service
Slide 46: Capex plan 2017-20
Investor presentation annexes Capex1,2 plan 2017-20 (€bn) 2017 2018 2019 2020 Growth Maintenance Growth Maintenance Growth Maintenance Growth Maintenance Italy 0.6 1.2 1.2 0.8 1.1 0.8 0.9 0.7 Global Thermal Generation 0.0 0.1 0.0 0.1 0.0 0.1 0.0 0.0 Global I&N 0.5 0.8 0.8 0.5 0.7 0.5 0.7 0.4 Global
Slide 47: Industrial growth: main drivers and projects
Investor presentation annexes Industrial growth: main drivers and projects Infrastructure Renewable Thermal generation e-Solutions & Networks Energies 2.3 €bn capex 0.3 €bn capex 0.1 €bn capex +0.3 €bn capex Italy +16 mn digital meters 2.0 COD > 2020 Storage >+0.1 €bn EBITDA Stable RAB 0.9 €bn capex
Slide 48: Retail: Italian power market
Investor presentation annexes Retail: Italian power market Customers (mn) Energy sold (TWh) 350 .0 50. 0 Enel Enel 300 .0 226.6 market share1 282.6 40. 0 15.1 market share1 36.8 250 .0 23% 3.9 55% 7.3 30. 0 200 .0 10.1 199.4 21.8 42% 217.7 150 .0 20. 0 3.7 29.5 100 .0 56.0 27.2 18.3 49% 10. 0 50. 0
Slide 49: Customer focus: retail in Iberia
Investor presentation annexes Customer focus: retail in Iberia Power unitary margin EBITDA (€bn) Free power market (TWh) in free market (€/MWh) +3% +20% 10.0 0 9.00 8.00 7.00 ~8 6.00 5.00 4.00 ~7 ~6 3.00 2.00 +5% 1.00 - 0.6 2017 2020 100 .00 91 96 0.5 80.0 0 18.5 22.2 Cost-to-serve (€/customer) 0.47
Slide 50: Customer focus: retail in South America
Investor presentation annexes Customer focus: retail in South America EBITDA (€bn) 2017 Total free market sales (TWh) Enel Free energy sold (TWh) 2017 2020 +50% Argentina 97% 3% 136 4.2 5.0 0.20 Brazil 56% 23% 21% 572 0.0 9.7 0.18 0.16 0.14 Chile 45% 8% 47% 74 1.7 13.9 0.12 0.15 0.10 0.13 0.08 0.10
Slide 51: Group net income by currency
Investor presentation annexes Group net income by currency 2017 2020 73% 72% 3.7 €bn 5.4 €bn 7% 11% 3% 8% 2% 8% 7% 5% 2% 2% EUR USD BRL EUR USD BRL CLP COP Other CLP COP Other 50
Slide 52: 2018-20 financial strategy
Investor presentation annexes 2018-20 financial strategy Gross debt breakdown Cost of gross debt 2017 2020 Hybrid bonds ~ 6.4% 3.7% 51.3 49.1 9% 9% 14% 15% Emerging markets2 ~ 8.5% 8.9% 20% 20% Banks and other ~ 1.6% 2.0% 57% 54% Bonds1 ~ 4.9% 4.1% 2% Tax Partnership ~ 10.0% 8.0% 2017 2020 Tax Partn
Slide 53: ESG deep-dive
Investor presentation annexes 2018-20 strategic plan ESG deep-dive
Slide 54: Enel's plan pillars and backbones: cross-reference with SDGs
Investor presentation annexes – ESG deep-dive Enel’s plan pillars and backbones: cross-reference with SDGs 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Growth across low carbon technologies & services Assets optimization Pillars and Innovation Engaging local communities Engaging the people we work with
Slide 55: Growth across low carbon technologies and services
Investor presentation annexes – ESG deep-dive Growth across low carbon technologies and services Plan actions Related targets/commitments +0.6 GW storage capacity Electrification, storage & demand response +5 GW demand response Development of renewable capacity and +7.8 GW renewable capacity1 reduct
Slide 56: Assets optimization and innovation
Investor presentation annexes – ESG deep-dive Assets optimization and innovation Plan actions Related targets/commitments +20.4 mn smart meters installed Large scale infrastructure innovation mostly 4.3 €bn digitalization capex in grid digitization, smart meters and charging stations Digitally integ
Slide 57: Engaging local communities
Investor presentation annexes – ESG deep-dive Engaging local communities Plan actions Related targets/commitments 2x High-quality, inclusive and fair education 0.8 million people1 From 0.4 Access to affordable and clean energy mainly in Africa, Asia 3 million people1 and Latin America 2x Employment
Slide 58: Engaging the people we work with
Investor presentation annexes – ESG deep-dive Engaging the people we work with Plan actions Related targets/commitments 100% of people1 involved Appraise performance of people we work 99% of people1 appraised with1 95% of people1 interviewed (feedback) Survey corporate climate with a focus on 100% o
Slide 59: Environmental sustainability
Investor presentation annexes – ESG deep-dive Environmental sustainability Plan actions Related targets/commitments Reduction of SO2 specific emissions -30% (vs 2010) Reduction of NOx specific emissions -30% (vs 2010) Reduction of particulates specific emissions -70% (vs 2010) Reduction of water spe
Slide 60: Digitalization and related risks: cyber security framework
Investor presentation annexes – ESG deep-dive Digitalization and related risks: cyber security framework Plan actions Related targets/commitments Single strategy approach based on business 100% of internet web applications protected risk management through advanced cyber security solutions Business
Slide 61: Focus on corporate governance (1/3)
Investor presentation annexes – ESG deep-dive Focus on corporate governance (1/3) Current shareholders’ structure1 2017 Annual General Meeting: Quorum Corporate Governance in a nutshell Institutional investors account for 57% on Enel’s TSO1 and 60% in the latest Enel’s AGM 48.8% 59.0% No special pow
Slide 62: Focus on corporate governance (2/3)
Investor presentation annexes – ESG deep-dive Focus on corporate governance (2/3) 78% Shareholders’ meeting Audit firm BoD composition 11% 11% Board of directors: Board of statutory Executive Non-executive 9 members1 advisors: 3 members Independent Control and risks Nomination and Corporate governan
Slide 63: Focus on corporate governance (3/3)
Investor presentation annexes – ESG deep-dive Focus on corporate governance (3/3) BoD members BoD diversity P. Grieco Non ex (Chairperson) CGSC 11% 33% F. Starace Executive 67% Age 22% Gender A. Antoniozzi Independent 67% CGSC RPC Independent 41-50 51-60 61-70 Men Women C. Calari NCC RPC 22% 4 Indep
Slide 64: Focus on remuneration policy (1/2)
Investor presentation annexes – ESG deep-dive Focus on remuneration policy (1/2) Short-term variable remuneration1 Related targets 40%2 Entry point (50% premium) = 3.5 €bn Net Ordinary Income Target (100% premium) = 2017 Group Guidance Overperformance (120% premium) = 3.7 €bn 30%2 Entry poin
Slide 65: Focus on remuneration policy (2/2)
Investor presentation annexes – ESG deep-dive Focus on remuneration policy (2/2) Long-term variable remuneration1 Related targets 60%2 Entry point (50% premium): Enel TSR >= 90% Index TSR Target (100% premium): Enel TSR >= 100% Index TSR Enel TSR vs Euro Stoxx Utilities index TSR Overperforman
Slide 66: Business lines deep-dive
Investor presentation annexes 2018-20 strategic plan Business lines deep-dive
Slide 67: Global infrastructure & networks
Investor presentation annexes 2018-20 strategic plan Global infrastructure & networks
Slide 68: Integrated model fit for digitalized, low carbon world
Investor presentation - Global infrastructure and networks Integrated model fit for digitalized, low carbon world Digital infrastructure platform Distributed generation and quality of service Cash flow generation and global risk mitigation Solid backbone of our growth 67
Slide 69: Positioning and key figures
Investor presentation - Global infrastructure and networks Positioning and key figures Italy (85%)1 224 TWh distributed energy Key figures 2017 Argentina (16%) 1 31.5 mn end-users Iberia (42%) 1 18 TWh distributed energy Distributed energy (TWh) 441 110 TWh distributed energy 2.5 mn end-users 12 mn
Slide 70: Regulatory scenario: Europe
Investor presentation - Global infrastructure and networks Regulatory scenario: Europe Country WACC Next regulatory cycle Highlights Italy 5.6% 2024 Totex in 2020 Regulatory framework Iberia 6.5%1 2020 Return revision in 2020 Smart meter Romania 7.7% 2019 roll-out Stable RAB of ~ 31 €bn Stable regul
Slide 71: Regulatory scenario: South America
Investor presentation - Global infrastructure and networks Regulatory scenario: South America Country WACC Next regulatory cycle Highlights Improved scenario Argentina 12.5% 2022 in Argentina New Rio concession Brazil Rio/Celg 12.3% 2018 conditions from March 17 Brazil Cearà 12.3% 2019 RAB maximizat
Slide 72: Digitalization
Investor presentation - Global infrastructure and networks Digitalization Pipeline model Platform model Processes convercence Digitalized processes Efficiency Products Disruptive efficiency Digital supply chain Excellency Technologies Lighthouse projects Networks automation Improve quality, efficien
Slide 73: Digitalization
Investor presentation - Global infrastructure and networks Digitalization Degree of digitalization and capex plan 2018-20 (€bn) South Italy Iberia Romania Italy Iberia Romania South America Digitalization 2017E KPI America drivers Disruptive Digital process status1 3.1 2.8 2.9 2.5 0.2 0.1 0.1 0.1 Ef
Slide 74: Disruptive efficiency pilot: Digitaly
Investor presentation - Global infrastructure and networks Disruptive efficiency pilot: Digitaly Project key figures Main achievements Applied solutions Process digitalization Asset 4.00 Analysed and reviewed all core processes 3.50 3.00 4.1 • Advanced sensors end to end under operation and digital
Slide 75: Industrial growth: focus on smart meter roll out
Investor presentation - Global infrastructure and networks Industrial growth: focus on smart meter roll out Italy - Smart meter 2.0 (#mn) Iberia - Meters (#mn) 25 30 2° wave of digital transformation 25 +16 20 +1 20 15 15 55% completed by 2020 17.4 100% completed by 2018 12.3 10 10 11.2 5 5 1.4 0 0
Slide 76: Italy: Smart meter 2.0's key features and benefits
Investor presentation - Global infrastructure and networks Italy: Smart meter 2.0 ’s key features and benefits End-users Energy operators Replacement of 16 million meters with Quarter-hourly load curves Consumption profile new generation ones Flexible rates Increased awareness Enabling val
Slide 77: Efficiency
Investor presentation - Global infrastructure and networks Efficiency Cash cost evolution1 (€bn) Cash cost/end users nominal (€) Cash cost/end users real (€) -10% -13% -17% 4.5 0.2 (0.7) 4.0 69.0 69.0 1.2 60.1 57.3 1.0 3.3 3.0 2017 FX&CPI Efficiency 2020 2017 2020 2017 2020 Europe 66.1 -13.3% 57.3 E
Slide 78: Quality of Service and Network Losses
Investor presentation - Global infrastructure and networks Quality of Service and Network Losses Minutes of interruption Network Losses (%) 10 9 -5% 98% Italy 8 Chile 90% 7 89% Romania 6 83% Peru 82% 5 74% Spain 4 Brazil 3 64% Colombia 2 57% Argentina 1 0 2017 2018 2019 2020 2017 2020 Europe -4% Sou
Slide 79: CELG 2020 Project
Investor presentation - Global infrastructure and networks CELG 2020 Project Key perfomance indicators Project plan (€m) New MV lines (km) Minutes of interruption Total capex ~ 560 +277% -40% 250 .00 200 .00 1,80 0.00 1,60 0.00 RAB 2020 +21% vs 2017 1,40 0.00 150 .00 223 1,20 0.00 1,910 … 1.725 1,00
Slide 80: Industrial growth 2018-20
Investor presentation - Global infrastructure and networks Industrial growth 2018-20 Growth capex1 by area (€bn) Growth capex1 by technology (€bn) Key figures 48% 67.2 mn connected end users 54% 5% 5% 4.7 €bn 4.7 €bn Cumulative growth EBITDA1 1.7 €bn 25% 20% 36% 7% Smart grid Average time to EBITDA
Slide 81: Financial targets
Investor presentation - Global infrastructure and networks Financial targets EBITDA by geograghy and capex 2017-20 (€bn) Capex by geography 2018-20 (€bn) Key trends 19% 8.7 Diversified geographical footprint 8.5 32% 7.9 0.2 0.2 7.3 0.2 0.2 2.5 2.7 5% 2.2 Stable regulatory framework 1.6 19% 11.3 with
Slide 82: Global renewable energies
Investor presentation annexes 2018-20 strategic plan Global renewable energies
Slide 83: Integrated model fit for digitalized, low carbon world
Investor presentation - Global renewable energies Integrated model fit for digitalized, low carbon world Zero-emission generation growth engine Driver of access to energy Growth engine for the utility of the future 82
Slide 84: Presence and key figures
Investor presentation - Global renewable energies Presence and key figures Key figures 2017 Managed Capacity (GW) 37.1 40.5 Production (TWh) 85.1 92 Key financials (€bn) 2017 EBITDA 4.1 Opex 1.4 Maintenance capex 0.3 Countries of presence Countries with advanced stage of development Growth capex 3.4
Slide 85: 2017 key relevant events
Investor presentation - Global renewable energies 2017 key relevant events: a very competitive battleground March April May June July Sept. Oct. Nov. Nov. – Dec. Awarded Chile USA Cimarron Entry in to Entry into Starting up Chile Tender in Spain Tender in Spain BSO Mexico DISCO tender USA wind COD B
Slide 86: Diversified regulatory framework
Investor presentation - Global renewable energies Diversified regulatory framework Renewable auctions • High competition and number of participants • Price driven • All operators • Regulatory and local content risk • Commodity PPA with customers C&I1 • High competition and low number of participants
Slide 87: Portfolio composition
Investor presentation - Global renewable energies Portfolio composition 2017 sales portfolio composition 2017 sales: focus on PPA Residual duration Offtaker Segmentation 63% 50% 6% 1% 11% ~85 TWh ~51 TWh ~51 TWh 2% 10% 93% 29% 35% Utilities & DisCos Incentivized >15 years 10-15 years Industrials Con
Slide 88: Additional capacity
Investor presentation - Global renewable energies Additional capacity Evolution per year1 (GW) 4.0 Main achievements 3.5 3.0 Leadership in construction and plant commissioning 2.5 2.0 2.6 Increase in average size of plants 1.5 2.0 1.0 Construction across 5 continents 0.5 0.9 1.0 0.3 Implementation o
Slide 89: Digitalization strategy along plant lifecycle
Investor presentation - Global renewable energies Digitalization strategy along plant lifecycle Predictive maintenance through big data1 Digitalized and automated construction 75% 85% 55% ~40% 2 Historical 2017 2020 2018 2019 2020 Predictive Corrective Maintenance and lost production saving Reductio
Slide 90: Engineering and technological leadership
Investor presentation - Global renewable energies Engineering and technological leadership Wind LCOE1 evolution Solar LCOE1 evolution 120 .0% 120 .0% 110 .0% 110 .0% 100 .0% 100 .0% 100% 11% 100% 90. 0% 90. 0% 22% 1 8% 1 80. 0% 80. 0% 82% 70. 0% 70. 0% 12% 60. 0% 60. 0% 66% 50. 0% 50. 0% 40. 0% 40.
Slide 91: Operational efficiency: key performance indicators
Investor presentation - Global renewable energies Operational efficiency: key performance indicators1 Hydro2 cash cost (k€/MW) Wind cash cost (k€/MW) Solar cash cost (k€/MW) Geothermal cash cost (k€/MW) 0.0 9 80. 0 0.0 9 100 .0 0.0 9 180 .0 0.0 8 80. 0 90. 0 70. 0 0.0 7 0.0 7 0.0 7 0.0 6 160 .0 60.
Slide 92: Asset value maximization: sample of projects in execution
Investor presentation - Global renewable energies Asset value maximization: sample of projects in execution Spain Chile USA1 Australia Russia Technology Wind/Solar Solar/Wind/Geo Wind Solar/Wind Wind Capacity (MW) 900 240 320 320 300 Capex (USD bn) 0.9 0.3 0.4 0.4 0.4 COD 2019 2023-24 2018
Slide 93: BSO and equity partnership
Investor presentation - Global renewable energies BSO and equity partnership 2017 Track record Towards the future Mexico – 2017 track record Worldwide dedicated team 20/80 with CDPQ & CKD 0.4 GW in operation 1.3 GW under construction Negotiation ongoing in new countries US – 2017 ongoing transaction
Slide 94: Industrial growth: 2018-20 capacity additions and growth capex
Investor presentation - Global renewable energies Industrial growth: 2018-20 capacity additions and growth capex Growth capex by geography Growth capex by technology Capacity additions1 by technology 34% 4% 15% 5% 2% 1% 10% 7% 63% 8.3 €bn 8.3 €bn 7.8 GW 6% 14% 72% 4% 63% Italy Iberia South America E
Slide 95: Industrial growth: pipeline and capacity additions
Investor presentation - Global renewable energies Industrial growth: pipeline and capacity additions 14 Capacity additions 2018-201 (GW) Pipeline by geography Pipeline by technology 12 10 ~60% already addressed 8 7.8 11% 1% 3% 36% 9% 1% 49% 6 3.3 3.8 4.5 21 GW 21 GW 4 0.9 1.3 1.4 2 3.2 4.0 36% 2.2
Slide 96: Financial targets
Investor presentation - Global renewable energies Financial targets EBITDA by geograghy and capex 2017-20 (€bn) Capex by geography 2018-20 Key trends +12% EBITDA influenced by asset rotation strategy 4.4 4.6 59% 4.1 4.2 0.1 0.1 0.1 3.7 0.1 0.6 3.6 0.5 Europe growth based on new 0.6 0.1 3.2 0.8 0.1 2
Slide 97: Global e-Solutions
Investor presentation annexes 2018-20 strategic plan Global e-Solutions
Slide 98: Integrated model fit for digitalized, low carbon world
Investor presentation - Global e-Solutions Integrated model fit for digitalized, low carbon world Leading the energy transition Digital platform proposition Customer empowerment Focusing on new customers’ needs through an asset light approach 97
Slide 99: Positioning and key figures
Investor presentation - Global e-Solutions Positioning and key figures Positioning1 (€mn) Key figures 2017 2017 Italy Europe & Revenues: ~300 North Africa Demand Maintenance Customer GW sold 5.7 1.1 Revenues: ~10 Response and repair4 base (#mn) Iberia Demand Side MW Customer North & 3 Repair5 1.3 Ce
Slide 100: Customer driven organization
Investor presentation - Global e-Solutions Customer driven organization Global e-Solutions e-Industries e-Mobility e-Home e-City (B2B) (B2C-B2B-B2G) (B2C) (B2G) Italy Global product lines Solutions and commercial Iberia Customers development Local stakeholders Geographies Marketing and posit
Slide 101: Our portfolio of solutions in the Global Product Lines
Investor presentation - Global e-Solutions Our portfolio of solutions in the 4 Global Product Lines e-Industries e-Mobility e-Home e-City Consulting and auditing Installation, maintenance Public charging network Smart lighting service and repair services Distributed generation Automated home Fiber o
Slide 102: Gross margin
Investor presentation - Global e-Solutions Gross margin Gross margin by technology (€mn) Gross margin by geography (€mn) 2017 2020 600 .00 e-Industries 450 .00 400 .00 e-Home 500 .00 350 .00 400 .00 300 .00 300 .00 448 250 .00 200 .00 200 .00 150 .00 261 100 .00 28% 22% 100 .00 183 50. 00 98 27% - -
Slide 103: KPI figures
Investor presentation - Global e-Solutions KPI figures 2017 2020 2017 2020 Demand GW sold 5.7 10.7 1.9x Maintenance Customer base 1.1 2,1 1.9x Response and repair1 (#mn) Demand Side Customer base MW installed/year 3 224 75x Repair2 1.3 2.4 1.9x Management (#mn) Credit cards Credit cards (#mn) 0.9 1.
Slide 104: e-Industries business model focused on flexibility services
Investor presentation - Global e-Solutions e-Industries business model focused on flexibility services Revenue streams Enabled by 2 platforms e-Industries Energy as a service Demand response EnerNOC Demand response + storage Demand side management / capacity Demand Energy peak shaving Resiliency and
Slide 105: Focus on the Demand response business
Investor presentation - Global e-Solutions Focus on the Demand response business1 Commercial & industrial Grid operator / utility clients customers e-Industries Flexibility Enel digital Load management platform Payment Payment 14,000 C&I sites 5,700 MW sold Gross margin: 80 €mn 10 countries (~80% in
Slide 106: e-Mobility business model
Investor presentation - Global e-Solutions e-Mobility business model Revenue streams Enabled by 3 technological layers 1 e-Mobility Energy Connected charging stations Charging stations 2 Installation services and O&M Smart charging Our smart software license to other charging station producers 3 V1G
Slide 107: Italy: public charging installations plan
Investor presentation - Global e-Solutions Italy: public charging installations plan Enel public charging installation plan (# cumulated) Enel products portfolio e-Mobility Enel 90% market share of total market 14,000 3,000 10,500 2,000 7,000 5,000 1,000 11,000 2,700 500 8,500 200 6,000 4,500 2,500
Slide 108: e-Home business model
Investor presentation - Global e-Solutions e-Home business model Revenue streams Enabled by 3 factors Distributed generation e-Home (PV, storage, etc) Enel customer base Maintenance and repair Network of partners Home 2 Grid Flexibility Aggregation platform Financial services Create a new home ecosy
Slide 109: Iberia and Colombia: business cases
Investor presentation - Global e-Solutions Iberia and Colombia: business cases1 Enel home services in Iberia Enel business in Colombia: Credito Facil Codensa Maintenance and repair of appliances Partnership with Colpatria bank providing credit cards to e-Home Typically periodic interventions our com
Slide 110: e-City business model
Investor presentation - Global e-Solutions e-City business model Revenue streams Enabled by 3 competitive levers e-City Energy as a service Enel capillarity presence in cities Public lighting Demand response Enel distribution networks Demand side management Flexibility Enel digital platform Wholesal
Slide 111: Italy: Open Fiber plan
Investor presentation - Global e-Solutions Italy: Open Fiber plan Total plan A&B clusters roadmap C&D clusters plan 12 FTTH future proof technology 10 Users (mn) 5 lots Wave 1 271 cities 8 6 regions 9.5 mn households ~1.4 €bn funds available 3.9 €bn capex plan 6 7.0 4.6 mn households 5-6 years time
Slide 112: Flexible distributed energy system
Investor presentation - Global e-Solutions Flexible distributed energy system Energy as a service value chain Advise Supply Optimize Flexibility Demand response Connected charging stations Demand side Smart charging management Vehicle 2 Grid Aggregation platform Home 2 Grid Best positioned to serve
Slide 113: Industrial growth 2018-20
Investor presentation - Global e-Solutions Industrial growth 2018-20 2018-20 growth capex by product line and by geography Key growth capex figures 2018-20 EBITDA by geography Energy efficiency and distributed generation projects and flexibility 43% 41% 32% services platform development 24% 0.8 €bn
Slide 114: Customer focus: e-Solutions
Investor presentation - Global e-Solutions Customer focus: e-Solutions Gross margin (€bn) Cumulated 2018-20 (€bn) Key highlights +2.5x 0.4 €bn EBITDA in 2020 3.00 2.8 1.00 2.50 2.4 0.4 0.80 1.0 2.00 >10 GW demand response 0.60 1.50 2.8 0.40 0.8 1.00 +300 k private, +9 k public charging stations 0.20
Slide 115: Global thermal generation
Investor presentation annexes 2018-20 strategic plan Global thermal generation
Slide 116: Integrated model fit for digitalized, low carbon world
Investor presentation - Global thermal generation Integrated model fit for digitalized, low carbon world Key player in the mix transition to a “low carbon” scenario Portfolio balancing and predictability Asset optimization through digitalization Maximizing value creation in residual asset life 115
Slide 117: Positioning and key figures
Investor presentation - Global thermal generation Positioning and key figures 2017 net production by technology1 2017 net production by geography1 Key figures 2017 Installed capacity1 (GW) 43 29% 27% 20% Net production (TWh) 144 19% 144 TWh 144 TWh Financials2 (€bn) 23% 29% EBITDA 1.5 53% Italy Cash
Slide 118: Digital transformation: project status
Investor presentation - Global thermal generation Digital transformation: project status Digitally integrated smart plant – reference model Processes digital re-design Additive Mobile Predictive Wearables manufacturing application maintenance Overhaul Overhaul Daily Maintenance Planning Management E
Slide 119: Efficiency
Investor presentation - Global thermal generation Efficiency Cash cost evolution1 (€bn) Maintenance1 (€bn) Opex1 (€bn) 3.5 0 -19% -40% -13% 3.0 0 2.5 0 2.1 0.1 (0.5) 2.0 0 1.6 0.5 1.7 1.4 1.5 0 0.3 0.5 1.0 0 3.25 3.00 1.6 1.4 0.5 0 0.3 - 2017 CPI & Efficiency 2020 2017 2020 2017 2020 Forex Maintenan
Slide 120: Capacity strategy
Investor presentation - Global thermal generation Capacity strategy Key levers Installed capacity1 (GW) EBITDA per MW 2 (k€/MW) Spending allocation based -24% +40% on plant profitability 120 .0 100 .0 Portfolio optimization, leveraging 47.0 43.2 80. 0 on strategic positioning 35.9 60. 0 16.1 12.3 11
Slide 121: Capacity strategy: focus on coal
Investor presentation - Global thermal generation Capacity strategy: focus on coal 2018-20 environmental capex Capacity covered by environmental upgrade1 Coal fleet evolution (GW) 20. 00 -41% (3.8) 30% 11% 15. 00 (2.8) 5% 0.5 €bn 60% 10. 00 6.1 GW 15.9 29% 5.0 0 9.3 65% - Italy Iberia South America
Slide 122: Environmental performance
Investor presentation - Global thermal generation Environmental performance New challenges @2020 Thermal Gen. Worldwide deployment of CO2 -5% best environmental practices Base year 2007 Emissions’ levels improvement through - 30% environmental investments NOx Base year 2010 SO2 - 30% Phasing out of
Slide 123: Energy storage development: utility scale BESS
Investor presentation - Global thermal generation Energy storage development: utility scale BESS1 UK Tynemouth BESS 25MW/12.5 MWh UK US COD: February 2018 ~400 MW 75 MW Progress in construction: ~60% Italy ~60 MW Iberia ~120 MW Spain Litoral TGx + BESS South America ~50 MW BESS 20MW/11.6 MWh Austral
Slide 124: Financial targets
Investor presentation - Global thermal generation Financial targets1 EBITDA2 by geograghy and capex 2017-20 (€bn) Capex by geography 2018-20 (€bn) Key trends -7% Resilience to worsening scenario 1.5 1.4 1.4 32% 0.3 0.2 0.2 8% 1.2 0.2 3% Decommissioning program in 0.5 0.5 0.6 1.9 12% Italy reduces sp
Slide 125: Global trading
Investor presentation annexes 2018-20 strategic plan Global trading
Slide 126: Integrated model fit for digitalized, low carbon world
Investor presentation - Global trading Integrated model fit for digitalized, low carbon world Global portfolio optimization Integrated margin management Diversified global portfolio evolution leading to integrated margin optimization 125
Slide 127: Positioning and 2017 key figures
Investor presentation - Global trading Positioning and 2017 key figures Net production by technology Net power sales by destination Key figures 2017 22% 19% Net power sales (TWh) 319 6% 10% 11% 13% Net production (TWh) 250 11% 250 TWh 319 TWh 37% 18% Power purchased (TWh) 64 28% 25% Coal purchased (
Slide 128: Role of energy management
Investor presentation - Global trading Role of energy management Energy management vs competitive landscape(€/MWh) Retail competitiveness Digitalization as a strategic enabler of continuous improvement and more sophisticated approaches Power & commodity responsiveness Centralization and integration
Slide 129: The group's resilience to the volatility of commodity prices
Investor presentation - Global trading The group's resilience to the volatility of commodity prices Global exposure year 2018 Commodity price volatility generates significant margin variation January 2017 October 2017 200 Power (TWh) 105 60 100 Coal (Mton) -26 -8 0 -12 €mn Hedging activity -100 Gas
Slide 130: Delivery on gas contract renegotiation
Investor presentation - Global trading Delivery on gas contract renegotiation Portfolio evolution (bcm, %) Price review impact (€bn) 29 30 32 0.86 0.91 3% 9% 13% 15% 17% 20% 65% 81% 84% 74% 64% 35% 19% 2018 2019 2020 2017-19 Old 2017-20 New Legacy1 To be contracted/spot US LNG + Tap Already negotiat
Slide 131: US LNG gas portfolio
Investor presentation - Global trading US LNG gas portfolio Portfolio evolution (bcm) LNG (€c/cm) 4.4 0.6 40 2.6 30 3.0 1.7 20 0.7 10 0.7 0.9 0.9 0 1 2 2017 2019 2020 Sabine Pass Corpus Christi Other HH JKM High price volatility enhances value of US LNG optionality 1. Henry Hub natural gas spot pric
Slide 132: Financial targets
Investor presentation - Global trading Financial targets Gross Margin (€bn) Key drivers +12% Generation: enhanced results mainly due to renewables growth 13.9 13.0 12.3 12.3 Gas: increasing gross margin thanks to price review and portfolio optimization actions Power Retail: positive trend in power r
Slide 133: Previous plan delivery
Investor presentation annexes 2018-20 strategic plan Previous plan delivery
Slide 134: Enel today: global and diversified operator
Investor presentation annexes – Previous plan delivery Enel today: global and diversified operator1 North & Central America Italy Iberia Europe & North Africa2 51% 25% 13% 59% 0.8 €bn 6.9 €bn 3.6 €bn 46% 0.5 €bn 5% 44% 6% 23% 3% 30% 22% 29% 100% 16% 3% Subsaharian South America Africa & Asia 2017 Gr
Slide 135: Enel today: diversified and resilient operator
Investor presentation annexes – Previous plan delivery Enel today: diversified operator and resilient operator 120 % 120 % 100 % 100 % 15% regulated ~15% Customers Customers1 15% Thermal Generation ~10% Merchant generation 12% 60% quasi regulated2 80% 80% 40% merchant Renewables 60% 26% 65% quas
Slide 136: Financial targets
Investor presentation annexes – Previous plan delivery Financial targets 2015 actual 2016 actual 2017 actual CAGR ✔ target target Ordinary EBITDA (€bn) 15.0 15.2 15.0 15.6 ~2% 15.5 ✔ ✔ target Net ordinary income (€bn) 2.9 3.2 3.7 3.6 ~13% ✔ ✔ target1 DPS (€/sh) 0.16 0.18 0.237 0.21 ~22% ✔ ✔ Pay-out
Slide 137: Strategic pillars 2015-17 Delivery
Investor presentation annexes – Previous plan delivery Strategic pillars 2015-17 Delivery 1 ✔ 1 €bn opex savings in 2017 in real terms Operational efficiency Maintenance capex down by over 10% 2 ✔ 16 €bn growth capex in the past three years Industrial growth 500 €mn growth EBITDA achieved1 3 ✔ From
Slide 138: Business drivers
Investor presentation annexes – Previous plan delivery Business drivers1 Networks Retail Renewables Thermal generation4 100% regulated EBITDA 15% regulated EBITDA2 65% quasi regulated EBITDA 60% quasi regulated EBITDA (€bn) (€bn) Large hydro (€bn) (€bn) 1.4% 12.4% 1.2% -7% CAGR CAGR CAGR CAGR 6 5.00
Slide 139: Active portfolio management
Investor presentation annexes – Previous plan delivery Active portfolio management 2015-17 active portfolio management (€bn)1 Disposals1 completed in 2017 (€bn) Acquisitions completed in 2017 (€bn) 6.8 JV in North America 0.3 Enel Distribuçao Goiás 0.9 HFS 1.4 5.3 EnerNOC 0.6 Electrogas Chile 0.2 e-
Slide 140: Build Sell and Operate model: the case in Mexico
Investor presentation annexes – Previous plan delivery Build Sell and Operate model: the case in Mexico Key figures Description and main drivers 1.7 GW capacity 0.4 MW operating assets Sale of majority stake to financial investors1 1.3 GW under construction 2.2 €bn asset value Equity IRR 11% 0.2 €bn
Slide 141: Positioning in a digitalized, low carbon world
Investor presentation annexes – Previous plan delivery Positioning in a digitalized, low carbon world CELG-D EnerNOC Demand Energy Distribution companies in Brazil (# customers, mn) #10 countries • Behind-the-meter storage market 10.8 6 GW demand 9.1 9.7 • 3 MW/9 MWh of installed capacity in respons
Slide 142: A sustainable strategy
Investor presentation annexes – Previous plan delivery A sustainable strategy Enel commitments to the global SDGs Delivery 2017 2015-171 ✔ 800,000 people by 2020 ~300,000 ~600,000 3 million people by 2020, mainly in ~500,000 1.7 million Africa, Asia and Latin America ✔ 3 million people by 2020 ~400,
Slide 143: Shareholders remuneration
Investor presentation annexes – Previous plan delivery Shareholders remuneration EPS (€/sh) DPS (€/sh) 11%CAGR 0.35 22%CAGR 0.30 0.35 0.30 0.36 0.25 0.31 1 0.25 0.29 0.20 0.237 0.20 0.15 0.18 0.15 0.16 0.10 0.10 0.05 0.05 - - 2015 2016 2017 2015 2016 2017 Minimum DPS 0.21 Strategy has delivered stro
Slide 144: 1H 2018 consolidated results
Investor presentation annexes Financial annexes 1H 2018 consolidated results
Slide 145: Financial highlights
1H 2018 consolidated results Financial highlights (€mn) 1H 2018 1H 2017 ∆ yoy Net of FX Revenues 36,027 36,315 -1% Reported EBITDA 7,857 7,678 +2% Ordinary EBITDA1 7,729 7,532 +3% +6% Reported EBIT 4,875 4,854 -% Ordinary EBIT 4,747 4,708 +1% Reported Group net income 2,020 1,847 +9% Group net ordin
Slide 146: Market context in the period
1H 2018 consolidated results Market context in the period Country electricity demand1 Average spot power prices (€/MWh) Currencies vs. euro5 -4.5% -3.5% -2.5% -1.5% -0.5% 0.5 % 1.5 % 2.5 % 3.5 % 4.5 % Spot price4 -15.0% -10.0% -5.0% 0.0 % 5.0 % 10. 0% 15. 0% 20. 0% 25. 0% 30. 0% 51.2 Italy 0.8% Ital
Slide 147: Ordinary EBITDA evolution
1H 2018 consolidated results Ordinary EBITDA evolution (€mn) +3% 815 0.0 74 (282) 61 317 22 795 0.0 (22) 775 0.0 27 755 0.0 7,751 7,729 735 0.0 7,532 7,559 715 0.0 +6% 695 0.0 net of FX and perimeter 675 0.0 1 3 1H 2017 One-offs 1H 2017 Growth Efficiency 2 Scenario & Forex Perimeter 1H 2018 One-offs
Slide 148: Adjusted EBITDA by business
1H 2018 consolidated results Adjusted EBITDA by business (€mn) +3% 850 0 830 0 Retail 19 Retail 180 2 (282) 1,369 €mn 1,510 €mn 810 0 790 0 434 22 Renewables 770 0 6 (191) Renewables 1,809 €mn 7,751 2,152 €mn 750 0 7,559 Generation 730 0 Generation 728 €mn 710 0 468 €mn Networks Networks 690 0 3,731
Slide 149: Global Renewable Energies: ordinary EBITDA analysis
1H 2018 consolidated results Global Renewable Energies: ordinary EBITDA analysis (€mn) 19% 250 0.0 206 (96) 6 229 (1) 200 0.0 2,152 150 0.0 1,809 100 0.0 +24% net of FX and perimeter 500 .0 0.0 1H 2017 Growth Efficiency Scenario Forex Perimeter 1H 2018 ordinary & resources ordinary 148
Slide 150: Adjusted EBITDA by geography
1H 2018 consolidated results Adjusted EBITDA by geography (€mn) 850 0.0 -3% Italy Italy 3.667 €mn 0 (16) (282) 3.573 €mn 239 125 Iberia 800 0.0 (2) Iberia 1,544 €mn 22 1,754 €mn 209 South America (103) South America 1,991 €mn 750 0.0 7,751 2,036 €mn 7,559 Europe & Europe & North Africa North Africa
Slide 151: Italy: ordinary EBITDA analysis by business
1H 2018 consolidated results Italy: ordinary EBITDA analysis by business (€mn) -3% 370 0.0 (71) Retail Retail 3,667 (182) 1,117 €mn 360 0.0 26 1,136 €mn 107 7 Renewables 3,573 Renewables 563 €mn 350 0.0 670 €mn 19 Generation 340 0.0 Generation 150 €mn -32 €mn Networks 330 0.0 Networks 1,798 €mn 1,72
Slide 152: Italian retail market
1H 2018 consolidated results Italian retail market Power unitary margin in free market (€/MWh)1 -9% 25.0 0 20.0 0 Ordinary EBITDA (€mn) Free market energy sold (TWh) 15.0 0 ~22 ~20 10.0 0 +2% +13% 5.00 - 1,20 0.00 1,117 1,136 40.0 0 33.6 1H 2017 1H 2018 1,00 0.00 35.0 0 29.8 30.0 0 7.1 800 .00 25.0
Slide 153: From ordinary EBITDA to net ordinary income
1H 2018 consolidated results From ordinary EBITDA to net ordinary income (€mn) (2,982) 7,729 (1,161) (991) 4,747 (703) 3,586 1,892 Ordinary D&A EBIT Financial EBT Income Minorities Group EBITDA expenses taxes net ordinary & other 1 income 1H 2017 (€bn) 7.5 (2.8) 4.7 (1.3) 3.4 (1.0) (0.6) 1.8 Change
Slide 154: Cash flow
1H 2018 consolidated results Cash flow (€mn) 10,0 00 8,00 0 (659) (871) 7,729 (461) (1,377) 6,00 0 (3,395) 4,00 0 4,361 2,00 0 281 (1,768) - 1,247 -2,000 (3,219) (3,740) -4,000 Provisions1 Working 3 Ordinary Income Financial FFO Capex BSO Capex Free Dividends Active Net free EBITDA capital taxes
Slide 155: Forward Sales Italy and Spain
1H 2018 consolidated results Forward Sales Italy and Spain Italy 2018 Italy 2019 55 TWh 61 TWh Achieved Achieved 5% 20% 5% 10% Price1 46 €/MWh 35% Price1 53 €/MWh 40% 90% 55% 40% 50% Expected Hedged Expected Hedged production production production production Spain 2018 Spain 2019 75 TWh 75 TWh A
Slide 156: Forward sales South America
1H 2018 consolidated results Forward sales South America Chile Colombia 100% 95% 90% 100% 100% 90% 2018 2019 2020 2018 2019 2020 79 81 87 60 63 68 Peru Brazil 100% 100% 100% 100% 100% 100% 2018 2019 2020 2018 2019 2020 51 53 55 63 65 66 Hedged Production Unhedged Production - Average Price (USD/MWh)
Slide 157: Reported EBITDA matrix
1H 2018 consolidated results Reported EBITDA matrix (€mn) Global Generation Global Infrastructures Services Renew able Energies Retail e-Solutions Total Total & Trading & Netw orks & Other 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Italy (32) 150 1,855 1,798 670 563 1,136
Slide 158: Ordinary EBITDA matrix
1H 2018 consolidated results Ordinary1 EBITDA matrix (€mn) Global Generation Global Infrastructures Renew able Services Retail e-Solutions Total Total & Trading & Netw orks Energies & Other 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Italy (32) 150 1,727 1,798 670 563 1,136
Slide 159: Gross debt structure
1H 2018 consolidated results Gross debt1 structure Long term debt by currency After swap Interest rate composition Long term credit ratings Rating Outlook 47% 77% 27% Standard & Poors BBB+ Stable 51.6 €bn 51.6 €bn 56.5 €bn 2% Moody’s Baa2 Stable 10% 3% 2% 73% 29% 3% Fitch BBB+ Stable 3% 9% 2% 7% 6%
Slide 160: Debt structure by instrument
1H 2018 consolidated results Debt structure by instrument (€bn) Sub-Saharan Central South North & Central Europe & North Debt by instrument Enel Spa EFI Italy Iberia Africa, Asia & Total Others America America Africa Australia Bonds 9.07 22.53 - - 0.04 6.41 - 0.07 - 38.12 Bank Loans 1.05 - - 4.32 1.
Slide 161: Debt maturity coverage split by typology
1H 2018 consolidated results Debt maturity coverage split by typology (€bn) 30.6 5.1 20.7 Available committed credit lines1 14.3 25.5 7.1 Short Term 5.1 4.9 4.4 Cash 4.8 3.4 1.9 0.9 6.4 Bank Loans and Others 2.0 1.6 4.0 1.1 3.2 2.4 Bonds 1.2 1.8 1H 2018 2018 2019 2020 2021 2022 After 2022 1. Of whic
Slide 162: Group total net installed capacity by technology and geography
1H 2018 consolidated results Group total net installed capacity1: breakdown by technology and geography Solar & Oil&Gas MW Hydro Wind Geothermal Nuke Coal CCGT TOTAL Other ST/OCGT Italy 12,401 772 762 80 - 6,340 4,535 2,739 27,630 Iberia 4,761 1,750 - 14 3,318 5,168 5,445 2,377 22,832 South America
Slide 163: Group total net production by technology and geography
1H 2018 consolidated results Group total net production1: breakdown by technology and geography Solar & Oil&Gas GWh Hydro Wind Geothermal Nuke Coal CCGT TOTAL Other ST/OCGT Italy 10,183 741 2,836 69 - 9,878 2,714 223 26,644 Iberia 5,289 2,020 - 13 11,769 9,080 3,466 3,231 34,868 South America 16,437
Slide 164: Group total additional capacity by technology and geography
1H 2018 consolidated results Group total additional capacity1: breakdown by technology and geography Solar & Oil&Gas MW Hydro Wind Geothermal Nuke Coal CCGT TOTAL Other ST/OCGT Italy 0 - 1 - - - - - 2 Iberia 9 132 - - - - - - 141 South America 51 304 - 103 - - - - 459 Argentina - - - - - - - - - Bra
Slide 165: FY 2017 consolidated results
Investor presentation annexes Financial annexes FY 2017 consolidated results
Slide 166: Financial highlights
FY 2017 consolidated results Financial highlights (€mn) FY 2017 FY 2016 ∆ YoY Like-for-like Revenues 74,639 70,592 +5.7% Reported EBITDA 15,653 15,276 +2.5% Ordinary EBITDA1 15,555 15,174 +2.5% +0% (5) Reported EBIT 9,792 8,921 +9.8% Ordinary EBIT2 9,736 9,435 +3.2% Reported Group net income 3,779 2
Slide 167: Market context in the period
FY 2017 consolidated results Market context in the period (change YoY) Electricity demand1 Average spot power prices (€/MWh) Currencies vs. euro2 -4.5% -3.5% -2.5% -1.5% -0.5% 0.5 % 1.5 % 2.5 % 3.5 % 4.5 % Spot price3 -20.0% -15.0% -10.0% -5.0% 0.0 % 5.0 % 10. 0% 15. 0% 20. 0% 42.8 Italy 2.0% Italy
Slide 168: Ordinary EBITDA evolution
FY 2017 consolidated results Ordinary EBITDA evolution (€mn) +2.5% +-% 207 170 00.0 (724) 694 59 (225) 160 00.0 (72) 298 150 00.0 15,555 15,174 15,246 15,257 140 00.0 +1.5% 130 00.0 120 00.0 (Net of perimeter) 110 00.0 100 00.0 FY 2016 One-offs 1 FY 2016 Growth Efficiency Scenario & Forex Perimeter
Slide 169: Adjusted EBITDA by business
FY 2017 consolidated results Adjusted EBITDA by business (€mn) -% 160 00 152 (270) 235 93 (33) (225) 59 Retail 155 00 Retail 2,706 €mn 2,440 €mn 150 00 15,246 15,257 Renewables 145 00 Renewables 3,987 €mn 140 00 3,956 €mn Generation 135 00 Generation 1,591 €mn 1,524 €mn 130 00 Networks 125 00 Networ
Slide 170: Global Renewable Energies: ordinary EBITDA analysis
FY 2017 consolidated results Global Renewable Energies: ordinary EBITDA analysis (€mn) +1% -% 500 0.0 497 72 (417) 15 (197) 100 450 0.0 (22) 400 0.0 350 0.0 4,009 3,987 3,956 4,056 300 0.0 250 0.0 +4% 200 0.0 (Net perimeter) 150 0.0 100 0.0 500 .0 0.0 FY 2016 One-offs FY 2016 Growth Efficiency Scena
Slide 171: Adjusted EBITDA by geography
FY 2017 consolidated results Adjusted EBITDA by geography (€mn) 17,0 00 -% Italy1 Italy 6,669 €mn 16,5 00 6,867 €mn Iberia 16,0 00 Iberia 3,536 €mn 189 (246) 378 (70) 30 43 (147) 3,290 €mn (225) 15,5 00 South America 59 South America 3,605 €mn 15,0 00 4,187 €mn 15,246 15,257 Europe & 14,5 00 Europe
Slide 172: Italy: ordinary EBITDA analysis by business
FY 2017 consolidated results Italy: ordinary EBITDA analysis by business (€mn) +5.7% +2.9% 700 0.0 166 75 23 (5) (4) (60) 680 0.0 Retail 175 6,867 6,863 Retail 1,932 €mn 2,007 €mn 660 0.0 6,669 640 0.0 Renewables 6,494 Renewables 1,031 €mn 1,054 €mn 620 0.0 600 0.0 Generation 580 0.0 Generation -194
Slide 173: Italian retail market
FY 2017 consolidated results Italian retail market Power unitary margin (€/MWh) 100% 100% B2C -35% Adjusted EBITDA1 (€bn) Free market energy sold (TWh) 30.0 00 25.0 00 65% B2B 20.0 00 27 15.0 00 21 +4% +22% 10.0 00 80.0 00 5.00 0 2.50 70.0 00 63.1 - 1.9 2.0 2016 2017 2.00 60.0 00 51.6 13.8 1.50 50
Slide 174: From ordinary EBITDA to net ordinary income
FY 2017 consolidated results From ordinary EBITDA to net ordinary income (€mn) (5,819) 15,555 (2,661) 9,736 (1,855) (1,511) 7,075 3,709 Ordinary D&A EBIT Financial EBT Income Minorities Group EBITDA expenses taxes net ordinary & other 1 income FY 2016 (€bn) 15.2 (5.7) 9.4 (2.7) 6.7 (2.1) (1.4) 3.2 C
Slide 175: Cash flow
FY 2017 consolidated results Cash flow (€mn) (1,689) (489) 14,5 00 15,555 (1,579) 12,5 00 (1,672) 10,5 00 (8,499) Growth. 8,50 0 10,126 4,922 BSO 775 6,50 0 Maint 4,50 0 2,363 Connections 775 (2,873) 2,50 0 2,402 1,214 500 -1,500 (1,382) -3,500 (1,500) 589 Ordinary Provisions Working 1 3 Income
Slide 176: Net debt evolution
FY 2017 consolidated results Net debt evolution (€mn) -143 Dec 31, 2016 Dec 31, 2017 continuing Free cash flow Active portfolio continuing operations after dividends management Forex operations 37,553 37,410 1 1,364 3 471 (1,525) 911 2 Net debt below guidance 1. Free Cash Flow after dividends net of
Slide 177: Debt and financial expenses
FY 2017 consolidated results Debt and financial expenses (€mn) Gross and net debt Net financial expenses on debt -% -7% 51,388 51,332 8,326 7,020 5,509 6,902 2.4 2,524 37,553 37,410 2,340 FY 2016 FY 2017 FY 2016 FY 2017 Net debt Financial receivables Cash Financial expenses reduction and net debt ah
Slide 178: Reported EBITDA matrix
FY 2017 consolidated results Reported EBITDA matrix (€mn) Global Generation Global Infrastructures Renew able Services Retail Total Total & Trading & Netw orks Energies & Other FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 Italy 239 (70) 3,467 3,620
Slide 179: Ordinary EBITDA matrix
FY 2017 consolidated results Ordinary1 EBITDA matrix (€mn) Global Generation Global Infrastructures Renew able Services Retail Total Total & Trading & Netw orks Energies & Other FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 Italy 239 (194) 3,467 3,62
Slide 180: 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 181: Contact us
Investor presentation Contact us Monica Girardi Head of Group Investor Relations Investor Relations team Francisco Basauri Serena Carioti Alessia Di Ninno Federica Dori Fabrizio Ragnacci Email Federica Todaro investor.relations@enel.com Emanuele Toppi Phone +39 06 8305 7975 Follow us Web site www.en