Slide 1: H1 2020 Consolidated results
H1 2020 Consolidated results July 29, 2020
Slide 2: H1 2020 Consolidated results - Francesco Starace, CEO
H1 2020 Consolidated results Francesco Starace CEO
Slide 3: Key highlights of the period
Key highlights of the period Resilient Push on Visible shareholder Group simplification performance decarbonisation remuneration 2020 Ordinary NI Accelerating coal Reached 65% in Net Income set to grow mid- phase out Enel Chile high single digit +6% Renewables DPS backed by COVID-19 Ongoing swap on
Slide 4: Market context deteriorated further over Q2
Market context deteriorated further over Q2… Currencies vs. euro1 (∆ yoy) Electricity demand (∆ yoy) Avg. spot power prices (∆ yoy) Q2 Q1 H1 Q2 Q1 H1 Q2 Q1 H1 -35% -34% Italy -14% -5% -9% Italy -51% -33% -42% ARS/EUR -34% Spain -13% -3% -8% Spain -52% -36% -44% BRL/EUR -26% -13% -20% Brazil -9% -0,5
Slide 5: Stimulus approved is set to overcome the crisis
…but stimulus approved is set to overcome the crisis and provide support for the next ten years European level Country level Unprecedented funds allocation to support a Simplification Decree green recovery Streamlined processes to support and accelerate Additional investments in power infrastruc
Slide 6: Investments confirmed and in line with previous year
Investments confirmed and in line with previous year Resilient capex program to improve visibility on mid-term targets Capex by business and by nature Asset development capex by business Capex addressed 2% 2% by year1 4% 2% 6% 20% 22% 2020E ~100% 41% H1 2020 H1 2020 H1 2020 4.1 €bn 4.1 €bn 2.5 €bn 2
Slide 7: Decarbonisation: Global Power Generation
Decarbonisation Global Power Generation Renewables capacity overtakes thermal capacity accelerating the decarbonisation path Installed capacity and production evolution1 (GW) Emission free share of production2 110 .0 56% emission free 67% emission free 105 86.2 82.9 90 90. 0 70. 0 - 6.6 GW 36.5 53 4
Slide 8: Enel Green Power: on course for new delivery record
Global Power Generation – Enel Green Power Decarbonisation On course to set a new delivery record despite COVID-19 outbreak Renewable capacity evolution1 (GW) 45.8 46.4 4.00 0.0 800 MW built year to date 3.50 (0.3) 3.00 2.50 2.00 3.7 3.5 1.50 1.00 0.8 c. 3,200 MW of new capacity - expected for FY 20
Slide 9: Extensive pipeline to support investments acceleration
Global Power Generation – Enel Green Power Decarbonisation Extensive pipeline to support investments acceleration 2020-22 Renewables growth (GW) Renewables pipeline Coverage by year 2020 ~100% 2021 83% 2022 36% Mature 16. 0 Pipeline 14. 0 14.1 0.8 12. 0 9.1 10. 0 102 GW 44 58 8.0 6.0 4.0 70% secured
Slide 10: Acceleration of de-coal process
Global Power Generation – Conventional generation Decarbonisation Acceleration of de-coal process vis-a-vis CMD targets Coal capacity evolution 2019-2022 (GW) Coal production (TWh) Coal capacity below 10 GW 2.1 GW coal shut down -18% Coal Phase out Revenues from coal 2.6% on total acceleration 10. 0
Slide 11: Networks: quality improvement and smart meter deployment
Enabling Infrastructure Networks Improvement in quality, ongoing smart meter deployment, reduction in distributed energy due to COVID-19 Electricity distributed (TWh) Smart meter 2.0 (mn)1 -8% 48% Network digitalisation +4.8 mn smart meters 2.0 installed 260 .00 16.0 0 250 .00 14.0 0 14.9 No exposur
Slide 12: Retail and Enel X: improved positioning
Electrification, Ecosystem & Platforms Retail and Enel X Improved positioning to leverage electrification trends Retail Enel X and new infrastructures Free market Free market power customers (mn) energy sold (TWh)2 H1 2019 H1 2020 +600k -9% +41% Charging points3 (k) 63 89 90 82 17 100 90 17 19 Deman
Slide 13: Financial results - Alberto De Paoli, CFO
H1 2020 Financial results Alberto De Paoli CFO
Slide 14: Financial highlights
Financial highlights (€mn) EBITDA1 Net Income1 FFO Net Debt 8,794 2,405 2,052 50,411 -% +6% -58% +12% H1 2019 8,763 2,277 4,922 45,1752 1. Ordinary figures 13 2. As of December 2019
Slide 15: FX and COVID-19 impact in the first semester
FX and COVID-19 impact on demand and bad debt in the first semester (€bn) Net of Ordinary FX Demand Bad debt COVID-19 & FX COVID-19 resulted into a sharp decline in volumes affecting particularly Latam where EBITDA 8.8 0.37 0.30 9.47 offsetting mechanism are under study Bad debt provisioning increas
Slide 16: Ordinary EBITDA flat yoy despite COVID-19 and FX
Ordinary EBITDA flat yoy despite COVID-19 and strong FX devaluation Net of FX 1.6 Net of FX Resiliency of European Resiliency networks of European I&N supported supported by -3% +3% solid by regulatory frameworks Latam networks exposed to volumes 1.1 3.8 H1 2020 Net of FX 8.81 €bn Integrated margin
Slide 17: Operational efficiency
Operational efficiency Efficiencies accelerated in Q2 OPEX evolution (€mn) Efficiencies by business -7% 4,5 00.0 9% 31% 12 4,0 00.0 4,244 21% (173) (125) (29) 3,929 H1 2020 3,5 00.0 (356) 3,574 173 €mn 3,0 00.0 2,5 00.0 39% 2,0 00.0 H1 2019 Efficiency CPI & FX Develop. & Perimeter H1 2020 Spain H1 2
Slide 18: Global Power Generation
Decarbonisation Global Power Generation Performance supported by a 10% increase in unitary margins EBITDA evolution (€mn)1 EBITDA by geography1 +9% Performance driven by growth of 5% installed capacity 3,70 0 3,085 3,369 32% 29% H1 2020 3,20 0 Benefit from short position 1,073 3.4 €bn 2,70 0 811 and
Slide 19: GPG - Enel Green Power
Decarbonisation GPG - Enel Green Power Operating performance driven by new capacity deployed EBITDA evolution (€mn)1 EBITDA by geography +1% More than 100 €mn contribution 5% 2,32 0.00 from additional capacity 41% 32% 2,30 0.00 H1 2020 Opex/MW declined by 2% 2,296 2.3 €bn vs last year 2,28 0.00 2,26
Slide 20: GPG - Conventional generation and trading
Decarbonisation GPG - Conventional generation and trading Short position and efficiencies EBITDA evolution (€mn)1 EBITDA by geography 1,40 0.00 +32% Benefit from short position 1% 13% 1,20 0.00 in Spain 7% 1,073 H1 2020 1,00 0.00 c. 55 €mn efficiencies in the 800 .00 58% 1.1 €bn 811 semester mainly
Slide 21: Infrastructure and Networks
Enabling Infrastructure Infrastructure and Networks Flat yoy despite volume exposed regulation and FX in Latam EBITDA evolution (€mn) EBITDA by geography 4,50 0.00 -2% European networks protected by regulatory frameworks 29% 2% 4,00 0.00 3,921 3,849 c. 80 €mn volumes impact in Latam 1,138 781 H1 202
Slide 22: Retail
Electrification Retail Business affected by lockdowns, operations up and running EBITDA evolution (€mn)1 Free Market – Energy sold (TWh)2 -6% -4% 32.1 30.3 Free market:+500k customers in Italy Stable customer base in Spain 7.7 8.4 +9% 1,661 1,591 Italy 24.4 21.9 -10% Regulated Volumes decline affect
Slide 23: Profit & loss
Profit & loss (€mn) H1 2020 H1 2019 ∆ yoy Ordinary EBITDA 8,794 8,763 -% Net Income increase net of FX devaluation D&A (3,339) (3,210) +4% +9% vs previous year EBIT 5,455 5,553 -2% Minorities reduction supported by our Financial expenses1 (1,119) (1,241) -10% simplification effort Results from equit
Slide 24: Cash flow
Cash flow (€bn)1 ~2 €bn extraordinary 10.0 1.2 €bn to be recovered by YE 8.0 8.8 (1.0) 6.0 (0.4) 4.0 (3.5) 2.0 (0.9) ((1.0) 2.1 - (2.1) -2.0 (4.1) -4.0 Ordinary ∆ Provisions 2 Provision ∆Working Income Financial FFO Capex FCF 3 EBITDA reversal in capital taxes expenses Spain & other PY 8.8 (0.6) (1.
Slide 25: Debt
Debt (€bn) Net debt evolution Gross debt 55 +3% 2.6 1.0 2.1 61.5 63.6 50 (0.7) 50.4 50.4 0.2 60 5.9 Cash 45 9.0 7.3 Fin. receivables 7.3 50 45.2 40 40 30 20 45.2 50.4 Net debt 35 10 30 - 1 Dec 31, 2019 IFRS 16 FCF Dividends Active portfolio FX June 30,2020 Dec 31, 2019 Jun 30, 2020 paid management C
Slide 26: Strong financial position
Strong financial position Abundant liquidity to support business continuity Liquidity position and LT debt maturites (€bn) Credit metrics 30.0 2019 2020 26.5 ND/EBITDA 25.0 (LTM) 2.7x 2.8x Cash 5.9 20.0 18.0 Bank Loans Rating Outlook 15.0 5.3 & Others Committed S&P BBB+ Stable 10.0 20.6 credit lines
Slide 27: Limited impact on 2020 targets from scenario deterioration
Limited impact on 2020 targets from scenario deterioration Shareholder remuneration - DPS (€/sh) 2020 +9% 2020E target +7% Ordinary EBITDA (€bn) 18.6 c. 18.0 0.37 0.36 0.36 0.35 Net ordinary income (€bn) 5.4 5.0-5.2 0.35 0.34 0.33 0.328 Net debt (€bn) 0.32 46.8 48-49 0.31 2019 @MIN @5.2€bn NOI guara
Slide 28: Closing remarks
Closing remarks Strategy DPS to increase by at Solid results accelerating on 2020 earnings set least +7% yoy despite a global energy to grow mid-high supported by challenging 0.35 €/sh trends supporting single digit environment Minimum DPS growth 27
Slide 29: Annexes
H1 2020 Consolidated results Annexes
Slide 30: Macroscenario
H1 2020 consolidated results Macroscenario GDP (%) CPI (%) FX against €1 Spot Price (€/MWh) Electricity Dem and (TWh) 2 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Italy (11.39) 0.33 0.02 0.90 - - 32.23 55.13 143.48 157.60 Iberia (12.88) 2.11 (0.01) 1.02 - - 29.05
Slide 31: Group consolidated net capacity by technology and geography
H1 2020 consolidated results Group consolidated net capacity: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 12,408 772 768 28 - 2,389 6,206 4,583 27,154 Iberia 4,748 2,305 - 352 3,318 2,334 2,764 5,445 21,266 Latin America 10,580 1,
Slide 32: Group consolidated net production by technology and geography
H1 2020 consolidated results Group consolidated net production: breakdown by technology and geography Solar & GWh Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 8,381 683 2,846 9 - 136 3,945 2,915 18,915 Iberia 4,714 2,424 - 259 12,672 2,042 655 4,809 27,575 Latin America 17,321 2,
Slide 33: Group total additional capacity
H1 2020 consolidated results Group total additional capacity1: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 2 - 2 - - - - 48 53 Iberia - 14 - - - - - - 14 Latin America - - - 176 - - - - 176 Argentina - - - - - - - - - Brazil - - -
Slide 34: Renewable projects in execution
H1 2020 consolidated results Renewable projects in execution: breakdown by technology and geography1 MW Wind Hydro Geothermal Solar Biomass Total Italy 46 59 7 - - 111 Iberia 118 8 - 258 - 383 Latin America 1,915 4 28 1,516 - 3,463 Rest of Europe 291 - - 6 - 297 North America 876 - - 181 - 1,057 Afr
Slide 35: EGP mature pipeline
H1 2020 consolidated results EGP mature pipeline1 By technology By geography By COD 1% 14% 9% 5% 4% 17% 28% 47% 52% 44 GW 44 GW 44 GW 19% 67% 37% Wind Italy North America 2021 Solar Iberia Rest of Europe 2022 Hydro & Others Latin America Africa, Asia & Oceania >2022 1. As of June 30st, 2020 34
Slide 36: Infrastructure & Networks KPIs
H1 2020 consolidated results Infrastructure & Networks KPIs Electricity distributed (TWh) 1 End users (m n) Sm art m eters (m n) 1 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Italy 98.7 110.9 31.4 31.5 31.3 31.4 Iberia 58.8 62.3 12.2 12.2 12.3 12.0 Latin Am erica 63.8 68.5 27.4 27.2 0.4 0.3 A rg
Slide 37: Retail KPIs
H1 2020 consolidated results Retail KPIs Power Gas 1 2 1 Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc) H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Italy 23.1 24.3 43.2 47.7 4.1 4.1 2.7 2.9 Iberia 10.5 10.7 39.0 43.1 1.7 1.6 2.6 3.1 Latin America 27.4 27.2 58.4 62.4 0
Slide 38: Baseload power price & production sold forward
H1 2020 consolidated results Baseload power price & production sold forward Baseload price 2020 2021 Italy (€/MWh) 60.2 59.8 Iberia (€/MWh) 53.2 53.5 Production sold forw ard 2020 2021 2022 price % price % price % 1 Italy (€/MWh) 56.9 100% 52.2 67% 51.2 23% Iberia (€/MWh)1 73.6 100% 72.1 92% ̴ 72.0
Slide 39: Capex
H1 2020 consolidated results Capex1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orks & Other H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Italy 55 59 803 843 80 82 135 144 27
Slide 40: Asset development Capex
H1 2020 consolidated results Asset development Capex1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orks & Other H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Italy 26 12 313 411
Slide 41: Asset management Capex
H1 2020 consolidated results Asset management Capex1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orks & Other H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Italy 28 47 223 214
Slide 42: Customers Capex
H1 2020 consolidated results Customers Capex1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orks & Other H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Italy - - 266 219 - - 135 1
Slide 43: Revenues
H1 2020 consolidated results Revenues1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orks & Other H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Italy 8,763 12,279 3,633 3,680 1,0
Slide 44: Reported EBITDA
H1 2020 consolidated results Reported EBITDA1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orks & Other H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Italy 180 176 1,873 1,824 7
Slide 45: Ordinary EBITDA
H1 2020 consolidated results Ordinary EBITDA1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orks & Other H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Italy 228 82 1,896 1,774 74
Slide 46: Reported EBIT
H1 2020 consolidated results Reported EBIT1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orks & Other H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Italy 102 46 1,169 1,308 585
Slide 47: EBITDA from Reported to Adjusted: by geography
H1 2020 consolidated results EBITDA from Reported to Adjusted: breakdown by geography (€mn) North & Africa, South Rest of H1 2020 Italy Iberia Central Asia & Other Total America Europe America Oceania Reported 3,974 2,274 1,926 255 293 21 (99) 8,645 Extraordinary items (94) (22) (27) (2) (1) - (3) (
Slide 48: EBITDA from Reported to Adjusted: by business line
H1 2020 consolidated results EBITDA from Reported to Adjusted: breakdown by business line (€mn) Conventional Generation & Infrastructure Services H1 2020 EGP Retail Enel X Total Global & Networks & Holding Trading Reported 1,001 3,816 2,291 1,582 23 (68) 8,645 Extraordinary items (73) (32) (4) (9) (
Slide 49: From EBITDA to net income
H1 2020 consolidated results From EBITDA to net income1 (€mn) H1 2020 H1 2019 H1 2020 H1 2019 ∆ yoy ∆ yoy reported reported ordinary ordinary EBITDA 8,645 8,907 -2.9% 8,794 8,763 0.4% D&A 4,102 3,694 3,339 3,210 EBIT 4,543 5,213 -12.9% 5,455 5,553 -1.8% Net financial charges (1,119) (1,241) (1,119)
Slide 50: D&A reported
H1 2020 consolidated results D&A reported (€mn) 1 0 H1 2020 H1 2019 ∆ yoy Generation and Trading 1,185 1,107 7% Enel Green Pow er 626 601 4% Distribution 1,470 1,321 11% Retail 653 490 33% Enel X 71 80 -11% Others and adjustm ents 97 95 2% Total 4,102 3,694 11% 49
Slide 51: Gross debt structure
H1 2020 consolidated results Gross debt1 structure Long term debt by currency After swap Interest rate composition Long term credit ratings Rating Outlook 47% 82% Standard & Poors BBB+ Stable 24% 57.2 €bn 3% 57.2 €bn 64.4 €bn Moody’s Baa2 Positive 7% 2% 3% 1% 76% 2% 5% 37% Fitch A- Stable 1% 3% 7% E
Slide 52: Debt structure by instrument
H1 2020 consolidated results Debt structure by instrument (€bn) EFA - EGP SpA Latin Africa, Asia Debt by instrument Enel Spa EFI and Italy Iberia North America Europe Total America and Oceania Central Others Bonds 8.09 30.00 - - 0.02 5.06 - 0.06 - 43.23 Bank Loans 0.40 - 0.79 3.88 2.19 1.95 0.23 0.2
Slide 53: Debt maturity coverage split by typology
H1 2020 consolidated results Debt maturity coverage split by typology (€bn) 30.8 26.5 7.0 Available committed credit lines1 20.6 8.6 23.8 6.8 7.6 7.2 6.2 0.9 Cash Short Term 3.6 1.6 1.0 5.9 Bank Loans and Others 0.8 5.8 6.7 Bonds 1.9 4.6 0.6 1.7 H1 2020 2020 2021 2022 2023 2024 After 2024 1. Of whic
Slide 54: Balance sheet
H1 2020 consolidated results Balance sheet (€mn) H1 2020 FY 2019 Δ Net financial debt 50,411 45,175 11.6% Shareholders' equity 43,368 46,938 -7.6% Net capital employed 93,779 92,113 1.8% 53
Slide 55: Balance sheet structure
H1 2020 consolidated results Balance sheet structure (€bn) Net fixed assets 107.1 10.4 1.7 0.0 (5.1) 95.0 (8.2) 93.8 43.4 50.4 Assets WIP (tangible Equity NWC Provisions Assets held Net capital Equity Net Debt & intangible) Investment for sale employed Net debt / Net capital employed 54% 54
Slide 56: Headcount
H1 2020 consolidated results Headcount 1 0 H1 2020 H1 2019 ∆ yoy Generation and Trading 8,541 9,432 -9% Enel Green Pow er 7,996 7,957 0% Distribution 34,485 34,822 -1% Retail 6,373 6,336 1% Enel X 2,901 2,808 3% Others and adjustm ents 6,529 6,898 -5% Total 66,825 68,253 -2% 55
Slide 57: Disclaimer
H1 2020 consolidated results Disclaimer This presentation contains certain forward-looking statements that reflect the Company’s management’s current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements ar
Slide 58: Contact us
H1 2020 consolidated results Contact us Contacts Email investor.relations@enel.com Phone +39 06 8305 7975 Download App Monica Girardi iOS Android Head of Group Investor Relations Investor Relations team Mobile App Federico Baroncelli Enel Investors Francisco Basauri Serena Carioti Federica Dori Fede