Enel Spa · MIL:ENEL
Enel Spa — Investor Presentation (May 2023)
179 slides from Enel Spa's investor presentation, May 2023
Slide 1: May 2023
May 2023
Slide 2: Agenda
Agenda CMD 2022 The energy context The Group in the energy context 2023-25 Strategic Plan Enel’s strategic actions Sustainable profitability Investing in our integrated strategy Strategic repositioning 2023-25 Financial management Strategic Plan Plan de-risking Targets Full Year 2022 Consolidated Re
Slide 3: The energy context
The energy context ene
Slide 4: The last three years have highlighted the importance of good energy markets design
The last three years have highlighted the importance of good energy markets design 2020 2021 2022 COVID -19 Russia – Ukraine conflict Prices extreme volatility +250% YTD gas prices in EU Dependence EU energy covered of supply 70% by imported fossil fuels Climate EU coal consumption change +7% Mt yoy
Slide 5: Clean electrification is now clearly emerging as the solution to tackle three challenges
Clean electrification is now clearly emerging as the solution to tackle three challenges… Total energy Affordability -20% spending Clean by 2030 vs 2020 electrification EU fossil fuels to create Security -30% by 2030 vs 2020 import affordable, secure, EU GHG sustainable Sustainability -55% by 2030 v
Slide 6: Clean electrification at the heart of long term policy packages
…and it is at the heart of the long term policy packages of the major western economies European EU Long Term Budget ~6901 €bn Long term Next Generation EU over a 7 year Union RepowerEU period support increased in the face of short-term United Inflation ~4151 $bn energy crisis States Reduction Act O
Slide 7: The Group in the energy context
The Group in the energy context
Slide 8: The Group positioned into the right energy trends
The Group positioned into the right energy trends 7
Slide 9: A business mix built over years to capture clean electrification opportunities
A business mix built over years to capture clean electrification opportunities Accelerate decarbonisation to Wind and solar Renewable Generation achieve energy independence ~3x production 2022 vs 2015 and tackle climate change Price to our Grant clients energy and services Customers at affordable pr
Slide 10: Managerial actions supported Group's performance
Managerial actions supported Group’s performance 2020 2021 2022 EBITDA 18 €bn 19.2 €bn 19.7 €bn Loss in hydro -7% Power demand -10% Prices set in 2020 -30% production in EU Market Hydro shortage Power prices disruption BRL -24% devaluation -20% & gas disruption 2x increase & higher in Chile open pos
Slide 11: A stronger-than-the-sector financial profile was preserved
A stronger-than-the-sector financial profile was preserved ND/EBITDA evolution (€bn) 4.00 2.8x net of government ND/EBITDA 3.50 3.7 interventions below sector 3.00 3.4 3.2 3.1 3.2 average 2.50 2.7 despite 2.5 2.5 2.00 governments’ 1.50 interventions 1.00 weighting 5.4 €bn 0.50 on 2022 0.00 financial
Slide 12: Enel's strategic actions
Enel’s strategic actions ene
Slide 13: Enel 2023-2025 plan in nutshell
Enel 2023-2025 plan in nutshell Acceleration of clean Business & geographies Growth and financial electrification strategic repositioning strength ~90% sales 1,2 +9-10% covered by 21 €bn Net Income GHG free sources 2022-25 2022-25 CAGR disposal plan3 75% RES 28% FFO/ND production on total1 from 2023
Slide 14: Enel strategic actions
Enel strategic actions 1 Balance customers’ demand and supply to optimize the risk/return profile Pursue an integrated position 2 Decarbonization to ensure competitiveness, across the value sustainability and security chain to serve our customers in their 3 Reinforce, grow and digitize networks to e
Slide 15: Balancing customer demand and supply
1 2 3 4 Balancing customer demand and supply Fixed power sales1 (TWh) Fixed power sales coverage1 250.00 +7% 250.00 Affordable price offering to 200.00 200.00 customers based on ~200 fixed price contracts ~185 150.00 150.00 More effective commercial ~90% strategy granted by a higher ~70% 100.00 100.
Slide 16: Services and infrastructures will foster the switch to clean electricity
1 2 3 4 Services and infrastructures will foster the switch from fossil energy to clean electricity Repricing (€/MWh)1 Services offering Offering to customers integrating 150.00 -20% 2022 2025 commodity and services 130.00 Storage behind 110.00 the meter (MW) 75 352 Tailored strategy on B2B, B2C & B
Slide 17: Investments in renewables to target sustainability, independence and affordability
1 2 3 4 Investments in renewables to target sustainability, independence and affordability Renewables pipeline1 (GW) Additional RES Capacity2 9 GW new capacity in Europe to 3% increase sales coverage 263 18% 436 21 GW 10 GW in US and Latam backed 52% by long term PPAs 162 27% 10.9 2 GW development i
Slide 18: Zero Emissions as a business driver
1 2 3 4 Zero Emissions as a business driver 2022 2025 2030 2040 Scope 1 Generation1 (gCO2e/kWh) 229 130 72 Scope 1 & 3 Zero Integrated Power1 218 135 73 Emissions (gCO2e/kWh) CO2 Scope 3 Gas Retail1 (MtCO2e) 22.9 20.9 11.4 1.5°C SBTi certified No use of carbon removal 1.5°C SBTi certification coveri
Slide 19: Supporting the strategic reshaping of the supply chain
1 2 3 4 Supporting the strategic reshaping of the supply chain in key areas 3Sun Gigafactory Stewardship model Yearly +15x 3,000 MW by 2024 vs current 200 MW Production Modules’ +7 p.p. >30% vs current 23.5% efficiency Factory +2x 100k by 2024 vs current 50k Area (sqm) Jobs created ⁓1,000 Sicily, Ca
Slide 20: Our strategy in grids is to concentrate in countries where transition accelerates
1 2 3 4 Our strategy in grids is to concentrate in countries where the transition to a green future accelerates Enel’s Grids and the green future index ranking world map1 Focusing on quality, resiliency and digitalization of distribution grids in countries most committed to clean electrification Cli
Slide 21: Networks are key enablers of clean electrification
1 2 3 4 Networks are key enablers of clean electrification already happening New connections request to Enel grids (k) Grids to cope with increasing requests of connection from 5x 700 distributed energy 600 500 574 +xx % 400 Network hosting capacity as key value creation 300 tool in the future 200 1
Slide 22: A more concentrated focus on security, digitalization and efficiency
1 2 3 4 A more concentrated focus to better deliver security, digitalization and efficiency Avg. capex per client (€/cl) SAIDI (min) Digitalized grid customers 90.00 +21% 250.00 -35% 90.00 +17 p.p. 80.00 80.00 ~80 200.00 231 ~80% 70.00 70.00 60.00 ~66 150.00 60.00 63% 50.00 50.00 ~150 40.00 40.00 10
Slide 23: Re-shape our global presence and businesses
1 2 3 4 Re-shape our global presence and businesses coherently with our strategy boosting value creation 1 Optimize footprint and asset base Exit from businesses and geographies less fitting Optimize with Group’s strategy footprint and Continued stewardship model in Tier 2 Countries extract value fr
Slide 24: A simpler structure with high growth potential
1 2 3 4 A simpler structure with high growth potential RES 33 capacity RES 15 capacity 32 Customers ~80% EBITDA from 33 RAB EU and US 2025 19 RES capacity +5 p.p. RoW Group NI/Total NI 18 Customers vs. 2022 RES 8 capacity 8 RAB 28% FFO/ND 6 75 50 41 Core RES Capacity1 Customers RAB Countries (GW) (m
Slide 25: Sustainable profitability
Sustainable profitability ene
Slide 26: An investment plan that maximizes the value of our integrated model
An investment plan that maximizes the value of our integrated model Gross capex by business Investments driven by integrated Integrated margin maximization commercial strategy 40% Steady flow of investments on grids 2023-25 50% as a key enabler of the ~37 €bn electrification 10% Growing commodities
Slide 27: Enel's evolution through 2025
Enel’s evolution through 2025 2022 2025 RES Capacity1 59 GW 75 GW RES Capacity on total1 66% 79% GHG free CO2 production on total 63% 83% A compelling Fixed power sales positioning to on total2 ~75% ~80% lead and grow Fixed sales covered by further in the ~70% ~90% GHG free sources2 electrification
Slide 28: Value creation for all of our stakeholders
Value creation for all of our stakeholders Financial community Value creation spread ~350 Clients Reduction of household power price1 -20% Scope 1 Generation GHG emission Planet intensity2 -43% Cumulated GDP created by local Communities investments ~70 €bn Upskilling and reskilling programs Employee
Slide 29: Alberto De Paoli, CFO
Alberto De Paoli CFO ene
Slide 30: Investing in our integrated strategy
Investing in our integrated strategy
Slide 31: Investments concentrated in core countries
Our investments in the next three years will be concentrated in core countries 2023-25 Gross capex by business and geography commercial strategy SDGs Capex alignement 23% Integrated 37% ~221 €bn ~94% 13% 40% 2023-25 50% 27% Italy ~371 €bn Spain EU Taxonomy capex alignement Latam 17% US >80% Grids 10
Slide 32: Power Generation & Retail: Capex, EBITDA evolution and value creation
Power Generation & Retail: Capex, EBITDA evolution and value creation Cumulated capex EBITDA EBITDA evolution evolution (€bn) over 2022E-2025 (€bn) CAGR Customers 16% 18. 0 ~13% FY 2022 16. 0 14.9 Pro forma2 (0.8) 1.0 14. 0 5.8 (0.4) (0.1) 2023-25 10.5 12. 0 1.8 10.4 1.5 ~221 €bn 10. 0 1.1 8.0 2.2 6
Slide 33: Integrated commercial business: EBITDA evolution
2022E-25 Integrated commercial business: EBITDA evolution CAGR ~15% ~100% 75% Sales covered by own +7% RES production production & LT PPAs Fixed price on total 0.6 12. 0 volumes 1.1 10. 0 1.7 0.2 8.0 6.0 2.2 10.6 4.0 7.0 2.0 4.8 0.0 2022E Exogenous 2022E Increase in Services RES Sales coverage 2025
Slide 34: 19 GW renewable development in core countries
Generation capex 18 €bn 19 GW renewable development in core countries Cumulated Capex in core countries Capacity in core countries 2023-251 Capacity Additional capacity @2025 (GW) 22% ~11 GW ~17 28% 27% 32% 2023-25 2023-25 ~4 GW ~18 ~17 €bn ~19 GW 14% 25% 26% ~4 GW ~4 26% - ~26 Italy Spain US Latam
Slide 35: The integrated commercial business is set to grow at 15% CAGR
The integrated commercial business is set to grow at 15% CAGR over the plan Integrated commercial 2025 Integrated 2025 RES Cumulated business (€bn) IRR-WACC comm. business coverage3 Capex €bn €bn bps 4.8 6.7 CAGR 12.00 ~15% 3.4 5.9 >300 10.00 10.61 8.00 7.0 1.12 5.0 6.00 2.2 4.8 4.00 2.00 2.0 2.8 ~2
Slide 36: Grids: Capex, EBITDA evolution and value creation
Grids: Capex, EBITDA evolution and value creation Capex by nature EBITDA evolution over 2022E-2025 (€bn) Connections Quality & Resiliency +4% FY 2022 7.5 0.1 0.1 Pro forma1 0.2 42% 2023-25 47% 7.0 7.0 (0.1) 7.3 ~15 €bn 7.0 6.5 6.0 11% 5.5 Digitalisation 5.0 IRR-WACC SPREAD EBITDA RAB WACC & Efficien
Slide 37: Grids investments deliver RAB growth within stable regulatory frameworks
Grids investments deliver RAB growth within stable regulatory frameworks Capex by geography RAB (€bn) Regulatory frameworks 17% 60.00 +5% Securing stable and 50.00 visible returns 39 41 2023-25 40.00 8 8 ~15 €bn 30.00 33 Supporting throughout 31 market disruptions 20.00 83% 10.00 0.00 Adapting to a
Slide 38: Improvements into unitary KPIs across geographies
Improvements into unitary KPIs across geographies EBITDA evolution (€bn) Capex/ % digitalized 2025 EBITDA IRR-WACC customers customers €bn €/cl bps 7.40 +4% 4.0 93 140 FY 2022 Pro forma2 7.20 7.3 1.8 61 100 7.00 7.0 6.80 7.0 6.60 6.40 1.5 42 ~200 6.20 6.00 2022E 2025 Pro forma 37
Slide 39: Stewardship model complements our development strategy
Stewardship model complements our development strategy Stewardship Total investments model 2022 2025 1.5 €bn Third parties 2023-25 EBITDA RES Capacity1 (GW) 6.3 12.1 2x Electric buses 1.2 €bn (k) 1.8 9.8 5.4x Net equity 2023-25 contribution @2025 ~15 €bn Credit cards 1.9 4.2 2.2x (mn) 1.1 2.5-3.0 €b
Slide 40: Strategic repositioning
Strategic repositioning ene
Slide 41: Execution concentrated early in the cycle
Execution concentrated early in the cycle ✔ 2022 2023 2024 Exit from Romania ✔ Sale of Peru Gen. COUNTRIES Sale of Peru DX ✔ Exit from Russia Sale of Argentina Gen. ✔ Sale of Argentina DX Stewardship: Australia, Greece Sale of TX in Chile CRYSTALLIZATION ASSETS & VALUE Gas portfolio value US assets
Slide 42: Impacts on economics and financials
Impacts on economics and financials 2022 2023 2024 EBITDA1 -0.1 -1.3 -2.8 POST TAX (€bn) IMPACT Net Income2 ON NET (€bn) - -0.4 -0.9 DEBT Net Debt2 (€bn) -5.9 -12.2 -2.8 -21 €bn EV/EBITDA of ~8x 41 1. Yearly impact 2. Yearly impact, post tax
Slide 43: Financial management
Financial management ene
Slide 44: Visible improvement of credit metrics in 2023
Visible improvement of credit metrics in 2023 Net Debt evolution (€bn) Credit metrics ND/EBITDA FFO/ND FY 2022 63. 00 60.1 -9 €bn FY 2022 +11p.p FLAT FLAT 61. 00 59. 00 3.1 57. 00 58-62 55. 00 FY 2022 53. 00 3.0x- 15% 51. 00 3.3x 2.4x 28% 2.5x 49. 00 51-52 17% 47. 00 45. 00 1 2022E 2023 2022E 2023 2
Slide 45: An extremely low exposure to credit tensions
An extremely low exposure to credit tensions Refinancing strategy for LT maturities LT debt maturity by year1 (€bn) 2023-25 30.0 Bearing cost 4% Amount Expected 25.0 (€bn) cost 20.0 Centralized refinancing 11.7 3.5% 15.0 Countries 1.8 8.3% 10.0 19.7 5.0 10.7 6.9 Total 13.5 4.1% 0.0 2.1 2023 2024 202
Slide 46: Stable cost of debt despite rise in rates
Stable cost of debt despite rise in rates Cost of debt evolution 2022-25 6.0% 5.5% Stable cost over 5.0% the plan thanks to the structure of 6-7 years 4.5% 4.0% 3.5% 3.5% 3.4% our debt built over 3.5% 3.3% debt average years through 3.0% life1 continues 2.5% 2.0% optimization and 2022 2023 2024 2025
Slide 47: Intrinsic de-risked characteristics of our debt
Intrinsic de-risked characteristics of our debt Centralized financing Gross debt structure 2025 Gross debt and EBITDA by currency Floating Gross debt1 EBITDA 20% 25% Euro 84% 75% 2025 2025 USD 11% 10% Latam 5% 15% >80% currencies 75% Share of centralized Fixed + Hedged Other 0% 0% financing 46 1. Af
Slide 48: Our sustainable finance is at the core of our financial strategy
Our sustainable finance is at the core of our financial strategy Sustainable finance sources (€bn)1 Sustainable sources on total Total Drawn KPIs3 amount2 amount2 Bonds 30 30 +7 p.p. Loans 13 12 2022 2025 RCFs 20 - ~70% CPs 18 6 63% Total 81 48 1. 2022E. Enel, EFI, EFA, Endesa and Enel Chile 2.Nomin
Slide 49: Plan de-risking
Plan de-risking ene
Slide 50: Operational de-risking
Operational de-risking Fixed sales sourcing mix1 EBITDA currency exposure Contracted/regulated 120.00 EBITDA (€bn) EUR Latam USD 120% 110.00 Spot 100% 3% 15% 100.00 purchases 10% 24% 90.00 Thermal 80% 10% 80.00 generation 12% 29% 60% 2025 22.2-22.8 70.00 90% 2022 GHG 75% 40% 60.00 free sources 64% 5
Slide 51: Financial de-risking
Financial de-risking Liquidity position Avg. yearly LT refinancing (€bn) Liquidity/ Committed 2.2x 2023-25 LT Credit Lines -65% financing needs 36% ~30.11 10. 00 €bn 13.1 -400 Short term/ 64% Gross debt bps 2025 vs 2022E 4.5 Cash 0.0 0 2020-2022E 2023-2025 50 1. As of March 31st, 2023
Slide 52: Targets
Targets ene
Slide 53: Solid and sustainable growth
Solid and sustainable growth 2022 2023 2024 2025 CAGR EBITDA (€bn) 19.7 20.4-21.0 21.4-22.0 22.2-22.8 4-5% Net Income 5.4 6.1-6.3 6.7-6.9 7.0-7.2 9-10% (€bn) DPS 0.40 0.43 0.43 0.43 (€/sh) Minimum DPS 52
Slide 54: Closing remarks
Closing remarks ene
Slide 55: Closing remarks
Closing remarks Closing remarks Maximisation of our integrated position Focus on core countries Stakeholders value creation and Financial position strenghtening distribution Leveraging on people passions and skills 54
Slide 56: Full Year 2022 Consolidated results
Full Year 2022 Consolidated results
Slide 57: Key highlights
Key highlights 1 2022 Results hit the guidance thanks to our integrated and resilient business model Business performance and 2 Operating evolution fully in line with our strategic guidelines managerial actions secured operating and financial 3 Final phase of strategic repositioning: execution well
Slide 58: Enel's integrated business model absorbed the shocks of 2022
1 2 3 4 Enel’s Integrated business model absorbed the shocks of 2022 Ordinary EBITDA by business Ordinary EBITDA evolution (€bn) +3% (0.9) 1.5 8.3 (2.0) 2.0 (0.5) FY 2022 0.4 9.9 19.71 €bn ~1.5 €bn integrated 19.2 12.6 19.7 business 1.7 Integrated 2 FY 2021 Grids Generation Retail & Portfolio Stewar
Slide 59: Operating delivery capabilities pushed results above targets
1 2 3 4 Operating delivery capabilities pushed results above targets and supported a structural growth Ordinary EBITDA (€bn) Ordinary Net Income (€bn) +10% +13% ABOVE EBITDA and GUIDANCE ABOVE Net Income ✔ 20.0 6.0 GUIDANCE 19.5 19.7 5.5 ✔ for 2022 5.6 19.0 19.2 18.5 18.0 5.0 5.2 5.4 above the 17.5
Slide 60: Net debt within guidance despite government measures impact
1 2 3 4 Net debt within guidance in spite of 5 €bn impact from governments’ measures still to be recovered Net Debt (€bn) 9.1 €bn FFO thanks to sound recovery in 65.0 58-62 EBITDA and in working capital 62.0 Mid-point of the 60.0 55.0 60.1 ✔ CMD Guidance 50.0 58.0 5.4 €bn government measures’ impact
Slide 61: 2022 continued to show a strong operating delivery
1 2 3 4 2022 continued to show a strong operating delivery, along our strategic guidelines Progressive de-risking of generation Enabling electrification High quality grids RES capacity on total1 Free market customers (mn) SAIDI (min.) +14 pp +4.4 mn -21% 70% 22 300 21 60% 20 50% 250 19 18 40% 66% 21
Slide 62: A strong RES development de-risks our generation
1 2 3 4 A strong RES development, notwithstanding supply chain disruptions, de-risks our generation Yearly additions1 (GW) 2023-25 Additional capacity target1 1.7x 7.00 Residual target covered around 7x 6.00 by the 2023-25 mature pipeline 5.00 9.8 4.00 21 GW 11.2 3.00 5.5 GW to be added in 2023, 5.1
Slide 63: Fixed price sales protected customer base from energy shocks
1 2 3 4 Leveraging on forward hedged generation, fixed price sales protected customer base from energy shocks Free market customers (mn) Fixed sales on total (TWh) Avg. sales price (€/MWh) 350 300 20.00 250 304 19.00 +2.6 mn 200 150 18.00 18.7 100 17.00 FY 2022 50 0 149 TWh Avg. spot Avg. fixed 16.0
Slide 64: Digital networks ready to host distributed generation
1 2 3 4 Digital networks ready to host the accelerated roll out of distributed generation New connections1 (GW) Smart meters (mn) +51% 7.00 New connections requests 6.00 increased 6 times versus 2019 5.00 20.6 4.00 45.8 mn 25.2 3.00 New hosting capacity to unlock 5.6 future value for the energy syst
Slide 65: Simplification efforts embedded in our strategic vision
1 2 3 4 Simplification efforts embedded in our strategic vision… Latin America restructuring European repositioning Endesa Slovenkse Sale of 2014 restructuring Elektrarne sale Severenergia Split of Enersis into Enel 2015 Chile and Enel Americas Merger of EGP Chile 2017 into Enel Chile Launch of shar
Slide 66: Final leg of Group's repositioning
1 2 3 4 …now entering the final leg of Group’s repositioning Latin America European Footprint/asset base NET DEBT restructuring repositioning optimization IMPACT Sale of TX in Chile Exit from Russia Gas portfolio value Disposal of Goiás grid crystallization in Chile ✔ 2022 Sale of Fortaleza CCGT Gri
Slide 67: Simple and predictable shareholder remuneration
1 2 3 4 Simple and predictable shareholder remuneration Dividend per share (€/share) Solid and 1.2x 0.46 visible 0.41 improvement in 0.40 shareholder 0.36 0.38 0.31 0.358 0.328 0.26 remuneration 0.21 with TSR at 110%1 from 0.16 0.11 0.06 2015 2019 2020 2021 2022 66 1. As of March 15th,2023
Slide 68: Full Year 2022 Financial results
Full Year 2022 Financial results
Slide 69: Results unaffected by volatile environment: guidance exceeded
Results unaffected by volatile environment: guidance exceeded at EBITDA and Net Income level EBITDA1 Net Income1 Net Debt ✔ 200 00 560 0 70. 00 195 00 190 00 540 0 520 0 ✔ 60. 00 ✔ 50. 00 185 00 500 0 180 00 40. 00 175 00 170 00 19.3-19.6 19.7 480 0 5.4 30. 00 58.0-62.0 60.1 5.0-5.3 460 0 165 00 20.
Slide 70: Integrated business capex
15 €bn investments deployed in 2022 to secure future EBITDA growth Gross capex by business and geography Integrated business 4% 21% 29% 60% of capex deployed to improve 8.6 €bn our integrated business 17% 40% FY 2022 29% Italy Focus on expanding the commodity 14.51 €bn 52% Spain and services offerin
Slide 71: EBITDA above guidance on sound business performance
EBITDA above guidance on sound business performance Ordinary EBITDA by business Own production/Fixed power sales2 RES production/Fixed power sales2 100 % 90% +8 p.p. 60% -2 p.p. 50% 80% 70% 40% 60% 50% 30% 40% 30% 78% 86% 20% 47% 45% 20% 10% 10% 0% 0% 8.3 FY 2021 FY 2022 FY 2021 FY 2022 FY 2022 9.9
Slide 72: Integrated business: geographical diversification
Integrated business: geographical diversification ensured economics protection Group Ordinary EBITDA Integrated business: Ordinary EBITDA evolution (€bn) +16% 0.4 12. 0 1.2 0.3 0.4 11. 0 10. 0 1.6 (0.3) 8.3 FY 2022 9.0 19.71 €bn 11.2 8.0 (1.5) 11.6 11.2 7.0 9.9 6.0 5.0 4.0 FY 2021 Italy Iberia Latam
Slide 73: Integrated business: focus on Italy
Integrated business: focus on Italy Ordinary EBITDA EBITDA evolution evolution (€bn) (€bn) -36% 4.5 00 4.0 00 Power Free affected by dynamics on 3.5 00 sourcing costs 3.0 00 0.9 2.5 00 2.0 00 4.2 (1.6) (0.5) Power Regulated decline driven 1.5 00 (0.3) 2.7 1.0 00 by lower contribution from 0.5 00 reg
Slide 74: Power Free: dynamics in Italy
Power Free: dynamics in Italy Fixed sales and coverage (TWh) Unitary margin dynamics (€/MWh) 160.00 Price 1.5x 140.00 120.00 ~140 Unitary margin down 70% yoy 100.00 60.00 54 -1 TWh 80.00 60.00 ~90 48 Market 40.00 impacted by 16% 50.00 20.00 purchases unexpected 0.00 21% 40.00 FY 2021 FY 2022 +14 TWh
Slide 75: Grids up by 8% yoy
Grids up by 8% yoy, supported by the positive performance in Latam Group Ordinary EBITDA Grids ordinary EBITDA evolution (€bn) +8% 8.5 0.5 0.6 8.3 8.0 7.8 FY 2022 7.5 (0.3) 7.8 7.7 (0.0) (0.1) (0.2) 19.71 €bn 7.0 11.6 6.5 6.0 0.5 5.5 5.0 FY 2021 Italy Iberia RoE Latam Delta FY 2022 Steward. FY 2022
Slide 76: Capex deployment to foster RAB growth
Capex deployment to foster RAB growth Gross capex by nature RAB (€bn) Positive regulatory frameworks Enel Dx Sao Paulo Tariff increase approved end Connections 46.00 +4% of June (c.+12%) 43 45 44.00 32% Perimeter 1.3 42.00 Enel Dx Ceara FY 2022 40.00 42 50% Tariff increase approved in 5.7 €bn 38.00
Slide 77: Net Income above guidance
Net Income above guidance, driven by growth in EBITDA and lower financial expenses Net Ordinary Income evolution (€bn) -3% Amortization increase due to 7.5 higher capex deployed and FX, bad 7.0 debt in line with historical level 6.5 (0.9) 1.4 6.0 Cost of debt at 3.3%, -20 bps yoy (0.6) 0.2 supports
Slide 78: FFO: +8 €bn in Q4
FFO: +8 €bn in Q4 driven by the expected recovery in working capital Cash flow (€bn) ∆NWC impacts evolution (€bn) 9M FY Govt & regulatory 25.0 (5.0) (2.4) 2.6 measures 20.0 19.7 ( 2.0 ) Energy market (3.7) (2.2) 1.5 15.0 ( 4.2 ) context ( 1.9 ) Capex 1.1 ( 2.4 ) (1.1) - seasonality 10.0 Other & 1.2
Slide 79: Q4 2022: Initial recovery of government measures impact
Q4 2022: Initial recovery of the impact of governments’ measures Government measures impact1 (€bn) FY 2021 9M 2022 FY 2022 Italy 2.4 5.7 4.3 -2.6 €bn System charges elimination Tariffs equalization recognition ~8.0 Coal/gas mandatory stock Spain 0.7 1.7 0.8 5.0 ~5.4 Price cap on gas 2.4 Gas mandator
Slide 80: Net Debt in line with mid-point of guidance
Net Debt at 60 €bn in line with mid-point of the guidance range Net debt evolution (€bn) ND/EBITDA 4.00 3.0x-3.3x 3.3x 3.50 3.1 1.5 3.00 ✔ 5.0 3.0x 2.50 (9.1) 14.5 2.00 Low end of (3.5) the CMD 60.1 1.50 51.7 Guidance 1.00 0.50 0.00 2 Dec. 31, FFO APM Capex Dividend FX Dec. 31, CMD Guidance FY 2022
Slide 81: Group's liquidity remained strong and stable
The Group’s liquidity remained strong and stable over the period in spite of extreme volatility Gross Debt impact from margin calls, governments Liquidity position measures and energy context (€bn) Liquidity position Cash Q1 2022 4.3 3.6 1.4 9.3 25.1 11.1 H1 2022 2.6 5.3 1.4 9.3 25.9 FY 2022 30.62 €
Slide 82: Cost of debt trending down
Cost of debt trending down thanks to proactive liability management implemented in 2021 Cost of Gross Debt Average LT Debt maturity (years) 6.0% FLAT 5.5% 8.00 5.0% -80 bps 7.00 4.5% 4.1% 6.00 6.80 6.90 4.0% 3.7% 3.5% 3.3% 5.00 3.5% 4.00 3.0% 3.00 2.5% 2.00 2.0% 1.00 FY 2019 FY 2020 FY 2021 FY 2022
Slide 83: Full Year 2022 Closing remarks
Full Year 2022 Closing remarks
Slide 84: Closing remarks
Closing remarks Strong 2022 results despite extreme volatility Strategic development Operational and financial resiliency back tested in the last three years continued despite energy crisis Focus on accretive simplification and on growth on integrated margin countries in line with strategy 83
Slide 85: First Quarter 2023 Consolidated results
First Quarter 2023 Consolidated results Francesco Starace CEO & General Manager
Slide 86: Key highlights
Key highlights Business performance FFO improvement Strategic repositioning 5.5 €bn 3.7 €bn c.11 €bn +22% vs PY +4.3 €bn vs Q1 2022 More than 50% of the 21 €bn disposal program Ordinary EBITDA Working capital bodes well for normalization drives Already closed or FY2023 target FFO improvement announc
Slide 87: Strong and visible operating delivery across all businesses
Strong and visible operating delivery across all businesses Q1 2022 Q1 2023 RES Capacity1 54.8 GW 59.3 GW +4.5 GW RES Capacity on total1 60% 67% +7 p.p. Fixed power sales CO2 on total2 ~75% ~75% FLAT Fixed sales covered by own production1,2 ~90% ~90% FLAT Storage BTM 59 MW 76 MW +17 MW Public chargi
Slide 88: First Quarter 2023 Consolidated results
First Quarter 2023 Consolidated results Alberto De Paoli CFO
Slide 89: Capex tailored to enhance value creation in core countries
Capex tailored to enhance value creation in core countries Share of gross capex in Gross capex by business Gross capex by geography core countries 5% 4% 29% 41% 23% Q1 2023 Q1 2023 Q1 2023 3.0 €bn 51% 3.0 €bn 3.0 €bn 54% 7% 64% 14% 8% Integrated Core countries business Italy Spain North Ordinary cap
Slide 90: Ordinary EBITDA up double digit
Ordinary EBITDA up double digit Ordinary EBITDA evolution1 (€bn) +22% Integrated 0.9 (0.6) 5.5 business 4.5 0.4 (0.2) 0.5 model drives Stewardship 0.2 ~750 €mn integrated 2.2 1.7 business growth within a normalizing 2.6 3.3 environment Q1 2022 Grids Generation Retail & Portfolio Steward. Q1 2023 Ene
Slide 91: Sound growth in the integrated business
Sound growth in the integrated business Integrated business: Ordinary EBITDA evolution (€bn) 4.5 +27% Normalization of 4.0 0.1 extreme 3.5 0.7 0.1 3.0 - 3.3 conditions in Europe allows full 2.5 2.0 2.6 (0.2) 1.5 1.0 deployment of 0.5 integrated 0.0 Q1 2022 Italy Iberia Latam North RoE Q1 2023 busine
Slide 92: Integrated business: focus on Italy
Integrated business: focus on Italy Ordinary EBITDA evolution (€bn) -17% Higher sales and fully hedged sourcing costs drive-up power 2.0 00 0.1 free performance 1.8 00 1.6 00 - 1.4 00 0.6 1.2 00 1.0 00 Power regulated flat yoy on 0.8 00 (0.9) stable contribution from 0.6 00 0.4 00 1.2 1.0 regulated
Slide 93: Power Free: unitary margin back to normalization
Power Free: unitary margin back to normalization driven by integrated commercial management Unitary cost of sourcing Fixed sales and coverage (TWh) Unitary margin1 (€/MWh) (€/MWh) 12.5 11.8 ~3.5x ~1.6x 12.00 11% -1 TWh 3% Market purchases 180.00 40.00 10.00 160.00 35.00 ~170 ~38 140.00 8.00 30.00 59
Slide 94: Grids up by 29% yoy
Grids up by 29% yoy Grids: Ordinary EBITDA evolution (€bn) +29% Stable 2.5 0.3 0.1 operating 2.0 0.1 - 2.2 performance 1.5 1.7 1.0 and regulatory 0.5 recovery in Rest of Europe 0.0 Q1 2022 Italy Iberia RoE Latam Q1 2023 drives results Q1 2022 0.8 0.4 (0.1) 0.6 Q1 2023 0.9 0.4 0.2 0.7 93
Slide 95: Continued improvement in Grids quality and digitalization
Continued improvement in Grids quality and digitalization Electricity distributed1 (TWh) SAIDI (min.) Smart meter -4% -14% Smart meter 260 .00 2.0 140 .00 127 122 240 .00 120 .00 242 Latam 35 32 220 .00 Q1 2023 23.4 100 .00 200 .00 22.6 46 mn 80. 00 207 180 .00 60. 00 160 .00 Europe 92 90 40. 00 140
Slide 96: Net Ordinary Income up by 2%
Net Ordinary Income up by 2% versus previous year, driven by a strong EBITDA performance Profit & loss (€bn) Financial Expenses Q1 20221 Q1 2023 ∆ yoy Temporary increase in financial expenses Ordinary EBITDA 4.49 5.46 +22% driven by gross debt dynamics and accounting of currencies D&A (1.77) (1.86)
Slide 97: FFO up by 4.3 €bn vs previous year
FFO up by 4.3 €bn vs previous year driven by the normalization of working capital dynamics Cash flow (€bn) ∆NWC impacts evolution (€bn) Q1 FY Q1 2022 2022 2023 6.0 Govt & regulatory (0.5) (2.4) 2.2 5.0 5.5 +4.3 €bn measures ( 0.3 ) ( 0.8 ) vs PY Energy market (1.4) (2.2) 0.4 4.0 ( 0.3 ) 3.0 ( 0.5 )
Slide 98: 3.2 €bn impact from government measures still to be recovered
3.2 €bn impact from government measures still to be recovered Government measures impact1 (€bn) FY 2022 Q1 2023 Italy 4.3 2.0 -2.2 €bn System charges elimination Tariffs equalization recognition Coal/gas mandatory stock Spain 0.8 0.5 Price cap on gas ~5.4 Gas mandatory stock System charges reduction
Slide 99: Group repositioning delivering results early in 2023
Group repositioning delivering results early in 2023, as planned Latin America restructuring European repositioning Argentina generation Perú activities Exit from Romania Sale thermal generation Agreement to sell Agreement to sell all the activities: distribution, supply and Romanian operations o En
Slide 100: More than 50% of the repositioning program addressed
More than 50% of the repositioning program addressed at attractive multiples 21 €bn Disposal Program ✔ 2022 5.9 Latin America restructuring 6.8 €bn ✔ Deals closed 2023 5.0 2.8 4.4 12.2 or announced YTD c.11 €bn European repositioning 2.2 €bn 2024 0 2.8 2 4 6 8 10 12 14 Footprint/asset base optimizat
Slide 101: Pro Forma Net Debt down by around 5 €bn
Pro Forma Net Debt down by around 5 €bn vs Full Year 2022 Net debt evolution1 (€bn) Q1 2022 Q1 2023 FFO/ND 15% 23% (LTM) -2% ND/EBITDA (LTM) 3.0x 2.9x 60.1 Hybrids 1.0 58.9 2.1 (0.5) (3.7) 3.0 (4.0) (1.2) ~55 FFO – Capex 59.1 +700 €mn 1.3 €bn Romania 2.7 €bn Perú Dx4 FFO – Capex ‘Core countries’ +1.
Slide 102: More than 12 €bn reabsorption of exogenous factors vs peak
More than 12 €bn reabsorption of exogenous factors vs peak Gross Debt impact from margin calls, governments Liquidity position measures and energy context (€bn) Liquidity position Cash 9M 2022 9.0 8.0 3.7 20.7 24.7 10.5 Q1 2023 30.11 €bn FY 2022 6.8 5.4 2.2 14.4 30.61 19.6 Q1 2023 3.0 3.4 1.8 8.2 30
Slide 103: 2023 guidance confirmed
2023 guidance confirmed Ordinary EBITDA (€bn) 20.4 – 21.0 Our sustainable Net Ordinary and integrated 6.1 – 6.3 Income (€bn) business model continues to Net Debt (€bn) 51 – 52 deliver strong results FFO/ND 28%
Slide 104: Annexes
2023-25 Annexes ene
Slide 105: Financial Annexes
2023-25 Financial Annexes ene
Slide 106: Macroscenario
2023-25 Macroscenario ene
Slide 107: GDP, CPI and FX
GDP, CPI and FX GDP (%) CPI (%) FX against €1 2023 2024 2025 2023 2024 2025 2023 2024 2025 Italy 0.2 1.6 1.1 6.0 2.2 1.6 n.m n.m n.m Iberia 1.5 2.9 2.0 4.4 1.9 1.8 n.m n.m n.m Latin America Argentina (1.5) 1.2 0.5 83.3 59.0 48.3 309.0 414.0 478.0 Brazil 0.3 2.9 2.7 6.6 3.8 3.6 5.3 5.7 5.8 Chile (1.1
Slide 108: Commodities' prices
Commodities’ prices 2023 2024 2025 Power price - Italy (€/MWh) 256.5 244.8 168.5 Power price - Spain (€/MWh) 177.0 154.0 117.0 Gas TTF (€/MWh) 110.0 110.0 66.0 Gas Henry Hub ($/mmbtu) 5.7 5.0 4.3 Gas PSV (€/MWh) 110.0 110.0 66.8 Oil Brent ($/bbl) 93.0 80.0 70.0 Coal API2 ($/ton) 270.0 215.0 170.0 CO
Slide 109: Enel Green Power
2023-25 Enel Green Power ene
Slide 110: Consolidated capacity
Consolidated capacity1 By technology2 By geography2 64% share of RES 76% share of RES 10% 16% 21% 16% 11% 2% 16% 1% 1% 31% 29% 4% 19% 8% 4% 2022 1% 2025 2022 2025 84.6 GW 79.9 GW 84.6 GW 79.9 GW 8% 29% 24% 21% 4% 33% 34% 26% 31% Hydro Wind Solar & Other Geothermal Italy Latin America Iberia Nuke CCG
Slide 111: Consolidated production
Consolidated production1 By technology2 By geography2 50% share of RES 70% share of RES 5% 3% 15% 11% 10%1% 24% 17% 21% 4% 21% 19% 3% 2% 6% 2022 2025 13% 2022 2025 228 TWh 6% 204 TWh 228 TWh 204 TWh 24% 33% 30% 9% 29% 23% 32% 11% 28% Hydro Wind Solar & Other Geothermal Italy Latin America Iberia Nuk
Slide 112: RES Additional Capacity (MW)
RES Additional Capacity1 (MW) Hydro Wind Geothermal Solar & Other Total 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025 Italy 4 14 17 - 86 196 - - - 104 400 957 108 499 1,170 Iberia 11 9 3 135 639 593 - - - 959 887 1,170 1,105 1,535 1,766 Latin America 1 153 - 156 325 - -
Slide 113: COD 2023-25 Mature Pipeline (GW)
COD 2023-25 Mature Pipeline1 (GW) By geography By technology COD COD 2023 2024 2025 Total 2023 2024 2025 Total Italy 0.0 0.5 3.3 3.8 Wind 0.0 1.3 11.8 13.1 Iberia 0.0 2.9 5.1 7.9 Latin America 0.0 1.7 11.1 12.8 Solar 0.0 5.2 28.5 33.7 Rest of Europe - 0.7 5.3 6.0 Hydro 0.0 0.1 0.0 0.1 North America
Slide 114: Sales Portfolio & PPAs key features
Sales Portfolio & PPAs key features1 RES Portfolio Composition PPAs by Off-taker rating PPAs by Duration 6% 17% 20% 27% 28% 40% 2023-25 2023-25 2023-25 413 TWh 237 TWh 237 TWh 26% 57% 18% 39% 22% Covered by PPAs (>=3 years) AAA to A- BB+ to BB- >10 years 3-5 years Forward sales & PPAs < 3 years BBB+
Slide 115: Grids
2023-25 Grids ene
Slide 116: Electricity distributed, Grid customers, Smart meters
Electricity distributed, Grid customers, Smart meters1 Electricity distributed (TWh) End users (mn) Smart meters (mn) 2022 2025 2022 2025 2022 2025 Italy 220 232 31.7 31.8 31.6 32.8 Iberia 132 143 12.5 12.7 12.3 13.1 Latin America 140 87 25.4 18.2 0.7 2.4 Rest of Europe 16 - 3.1 - 1.3 - Total 508 46
Slide 117: Current regulatory framework
Current regulatory framework1 Italy Iberia Brazil Chile Colombia WACC real 5.2% 5.6%3 12.3% 7.0%4 12.1% pre tax 2022 Next Regulatory 20242 2026 2023 2024 2025 Period Regulatory Period 5 (Rio) 4+4 6 4 (São Paulo) 4 5 Length (years) Metering Owned by Owned by Owned by Owned by Owned by Ownership DSO D
Slide 118: Enel X Global Retail
2023-25 Enel X Global Retail ene
Slide 119: Power & Gas customers and volumes
Power & Gas customers and volumes1 Power Gas Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc) 2022 2025 2022 2025 2022 2025 2022 2025 Italy 21.4 17.5 97.2 89.1 4.6 4.4 4.7 4.0 Free Market 11.9 12.9 78.3 76.9 4.6 4.4 4.7 4.0 Regulated 9.5 4.5 18.9 12.1 - - - - 2 Iberia 10.5 10.4 79.0 84.8 1
Slide 120: Enel X Retail KPIs
Enel X Retail KPIs Street lighting (mn) Electric buses (#) Storage (MW) Demand Response (GW) 2022 2025 2022 2025 2022 2025 2022 2025 Italy 1.6 1.8 154 1,292 - 11 0.6 1.4 Iberia 0.1 0.1 294 1,270 - - 0.2 0.2 Latin America 1.3 1.3 4,326 7,444 1 - 0.1 0.2 Rest of Europe - - 72 536 - 14 1.2 2.0 North Am
Slide 121: Italian and Spanish Power Market – Forecast 2022
Italian and Spanish Power Market – Forecast 2022 Italy Spain Customers (mn) Enel Customers (mln) 2 3 Regulated Free Total market share** Regulated Free Total Enel Market Share %*** Business 1,5 5,6 7,1 38% Business 0,0 0,9 0,9 22% Residential 9,8 20,1 30,0 49% Residential 10,5 18,4 28,9 33% Total 11
Slide 122: Enel Group in 2030
Enel Group in 2030 ene
Slide 123: Enel Group in 2030
Enel Group in 2030 RES capacity on total¹ ~85% Gas sold2 ~3 bcm Charging Points3 >4 mn Demand Response >20 GW SAIDI ~100 min Digitalized grid customers 100% 1. It excludes BESS 122 2. It contemplates the impact of M&A plan currently under analysis 3. It includes public, private and interoperability
Slide 124: Enel Group financials
2023-25 Enel Group financials
Slide 125: Gross Capex (€bn)
Gross Capex1 (€bn) Cumulated gross capex by GBL Cumulated gross capex by geography Italy Grids 23% Iberia 39% Retail Latin America Conventional generation 48% 37.4 €bn 45% 37.4 €bn Rest of Europe Enel X 15% North America 1% 4% Renewables 6% 5% 13% 1% Other Enel Green Power Enel X Global Retail Conve
Slide 126: Asset Development Capex (€bn)
Asset Development Capex1 (€bn) Cumulated gross capex by GBL Cumulated gross capex by geography Italy Grids 23% Iberia 29% Conventional generation Latin America Enel X 45% 23.3 €bn 23.3 €bn Rest of Europe 12% 1% Renewables 64% North America 4% Other 20% Africa, Asia & Oceania 2% Enel Green Power Enel
Slide 127: Group Ordinary EBITDA (€bn)
Group Ordinary EBITDA1 (€bn) By GBL2 By geography2 22.2 - 22.8 22.2 - 22.8 19.7 19.7 1.3 6.3 0.1 0.1 4.3 3.8 0.9 0.6 0.6 2.5 6.0 5.4 6.1 6.0 5.2 1.1 11.4 8.3 7.3 6.5 2022 2025 2022 2025 Grids Enel X3 Italy Latin America Rest of Europe Global Retail Renewables Iberia North America Africa, Asia & Ocea
Slide 128: Enel Green Power Ordinary EBITDA
Enel Green Power Ordinary EBITDA1 Ordinary EBITDA (€bn) Renewables - By geography 14% 22% 18% 2% 12 20222 2025 9.9 23% 3.8 €bn 56% 6.3 €bn 10 18% 8.8 42% 5% 8 2.5 6.2 Conventional Generation - By geography 6 1% 4 12% 6.3 40% 2022 45% 2025 2 4.0 6.1 €bn 2.5 €bn 42% 59% 0 2022 2025 1% Renewables Conve
Slide 129: Grids Ordinary EBITDA
Grids Ordinary EBITDA1 Ordinary EBITDA (€bn) EBITDA - By geography 9 21% 24% 8 8.3 2022 2025 7 7.3 47% 56% 6 8.3 €bn 7.3 €bn 5 4 32% 20% 3 2 1 Italy Iberia Latin America 0 20222 2025 Rest of Europe Other 1. Rounded figures 128 2. It includes 0.8 €bn of perimeter and 0.5 €bn of stewardship
Slide 130: Enel X Global Retail Ordinary EBITDA
Enel X Global Retail Ordinary EBITDA1 Ordinary EBITDA (€bn) Global Retail - By geography 24% 29% 36% 2022 3 7.0 6.6 2025 0.6 1.1 €bn 6.0 €bn 5% 6.0 71% 5.0 35% 4.0 Enel X & Enel X Way - By geography 3.0 6.0 12% 37% 9% 1.7 15% 2022 2.0 0.6 2025 1.0 55% 0.6 €bn 17% 0.6 €bn 1.1 9% 22% 7% 0.0 2022 2 202
Slide 131: Ordinary EBITDA by GBLs (€bn)
Ordinary EBITDA by GBLs1 (€bn) Italy Iberia ~11.4 1% 2% 5.2 ~5.4 25% 31% 33% 6.5 7% 1% 2% 37% 27% 33% 7% 49% 18% 57% 35% 2% 1% 20% 12% 2022 2025 2022 2025 Renewables Grids Global Retail Conventional Enel X and Enel X Way generation Power Generation2 Other 130 1. Rounded figures. 2. It includes Renew
Slide 132: Ordinary EBITDA by GBLs (€bn)
Ordinary EBITDA by GBLs1 (€bn) Latin America² North America Africa, Asia & Oceania2 ~1.3 ~0.1 6.0 5% 40% ~4.3 0.1 2% 41% 32% 7% 12% 7% 0.9 2% 3% 95% 100% 59% 39% 58% ⁓100% 2022 2025 2022 2025 2022 2025 Renewables Grids Global Retail Conventional Enel X and Enel X Way generation 1. Rounded figures. 1
Slide 133: Sensitivities
Sensitivities ene
Slide 134: Currencies
Currencies 2023-25 EBITDA & Net Income impact (€bn) Cumulated EBITDA NET EBITDA NET INCOME EBITDA by currency INCOME 0.60 0.20 2.00 Euro 1.80 0.05 0.02 +10% 72% 10% revaluation 1.60 local currencies 1.40 1.20 vs EUR 1.00 0.80 1.83 0.47 0.25 0.60 2023-25 0.64 0.40 0.20 0.71 0.17 64.8 €bn 0.00 0.00 -0
Slide 135: ESG Annexes
2023-25 ESG Annexes ene
Slide 136: Sustainability strategy
Sustainability strategy ene
Slide 137: Our strategy for sustainable progress
Our strategy for sustainable progress Long-term climate strategy We create long-term value with and for …promoting the protection of natural capital and biodiversity… 2 1 all our stakeholders, helping them to grow and meet challenges… Just Transition for Enel’s People Biodiversity Inclusion & Unique
Slide 138: Long-term climate strategy
Long-term climate strategy ene
Slide 139: Long-term climate strategy: partnering with all our stakeholders
Long-term climate strategy: partnering with all our stakeholders in the fight against climate change Financial Enel capex plan fully aligned with 2040 Net Zero targets Community & Partners Sustainability-linked instrumetns to finance Enel decarbonization strategy Exit from coal generation by 2027 &
Slide 140: People
People ene
Slide 141: Just Transition for Enel People
Just Transition for Enel People Professional orientation and training for the development of our people and their skills, even more in situations impacted by the energy transition, is key to requalifying and Human enhancing existing potential which translates into: Rights Policy Internal redeploymen
Slide 142: Inclusion & uniqueness
Inclusion & uniqueness Inclusion of people’s multiple and unique talents is an essential factor in Enel’s approach to create long term value for all stakeholders Purpose Human Rights Policy Enel puts in place an organic set of actions aimed at: Global Diversity & Inclusion Policy allowing expression
Slide 143: Wellbeing & Welfare
Wellbeing & Welfare Development and dissemination of a robust well-being culture, promoting personal and organizational well-being, is an enabler of the engagement and innovative Human potential of people and critical to business performance Rights Policy Purpose and Actions Promote a high level of
Slide 144: Sustainability and Innovation in the Procurement Process
Sustainability and Innovation in the Procurement Process - Suppliers and Contractors Health & Safety + Innovation by vendors Partnerships Human Rights Policy Environment Circular Economy Procurement involves suppliers Human Rights & Social with suppliers in some innovation challenges Code of Ethics
Slide 145: Sustainability initiatives with local and global communities
Sustainability initiatives with local and global communities Key pillar of our strategy is to establish solid, long-lasting relationships with local communities, integrating socio-economic factors within business processes Value created for communities An approach along the entire value chain: busin
Slide 146: Nature
Nature ene
Slide 147: Environmental Sustainability - Biodiversity
Environmental Sustainability - Biodiversity The Biodiversity Policy was updated in 2023, and Enel's roadmap on biodiversity conservation is in line with the Kunming-Montreal global biodiversity framework. The Policy foresees the application of the Mitigation Hierarchy Principle in all project phases
Slide 148: Environmental Sustainability - Biodiversity
Environmental Sustainability - Biodiversity Main Initiatives and Enel’s participation Biodiversity Policy Supporter from 2020 Updated in 2023 Global coalition that includes business and conservation organizations calling for governments to adopt policies to reverse nature loss in this decade. Enel w
Slide 149: Environmental Sustainability - Biodiversity
Environmental Sustainability - Biodiversity Enel is committed to apply the Mitigation Hierarchy principle to avoid and prevent negative impacts respecting the No Net Loss principle when building new infrastructures Biodiversity Policy Updated in 2023 The Mitigation Hierarchy + Biodiversity Examples
Slide 150: Environmental Sustainability - Water
Environmental Sustainability - Water Enel applies an integrated approach for optimal management of use of water resources and their protection Environmental key Water quality Downstream of internal recoveries and reuses, wastewater discharged from the plants performance is returned to the surface wa
Slide 151: Environmental Sustainability - Pollutants and Waste
Environmental Sustainability - Pollutants and Waste Enel commitment to improving the air quality in areas where the Group Air quality operates is testified by the constant reduction of the main atmospheric Environmental key pollutants associated with thermal production performance indicators Policy
Slide 152: Environmental Sustainability – Avoided emissions
Environmental Sustainability – Avoided emissions 100 .000 90. 000 80. 000 70. 000 60. 000 50. 000 Avoided emissions1 40. 000 78.5 77.1 74.8 81.6 +14% 71.3 72.8 (mil t) 30. 000 vs 2017 20. 000 10. 000 0.0 00 2017 2018 2019 2020 2021 2022 GHG free producton2 116 133 136 141 144 150 +29% (TWh) vs 2017
Slide 153: Human Rights Policy and Health & Safety
Human Rights Policy and Health & Safety
Slide 154: Human Rights: Enel's public commitment
Human Rights: Enel’s public commitment based on the voluntary international reference standards 2021 update Key updates Added description of Enel’s commitment to respecting human rights along the value chain, and specifically: i) mission; ii) contribution to the United Nations Sustainable Developmen
Slide 155: Health & Safety
Health & Safety Health & Safety Management system is based on hazard identification, on qualitative and quantitative risk analysis. Certification of the whole Group according to ISO 45001 and relative implementation Human Rights Policy Data driven Data-driven approach based on digital tools, dashboa
Slide 156: Growth Accelerators
Growth Accelerators ene
Slide 157: Circular economy
Circular economy Enel’s vision of the circular economy stands on five pillars that define the related context and methods of application The 5 pillars Circular Production and use model based on renewable inputs or Inputs previous life cycles (reuse and recycling) Life Approach to the design and mana
Slide 158: Circular economy – Focus Wind
Circular economy – Focus Wind Inputs Material Useful Life New Life Cycle Main materials used: 25 years average lifetime Current recyclability of WTGs Steel Expected volume at end of life ~ 80% (steel, alumiunium, copper Concrete considering the installed capacity¹: already fully recycled) Fiberglass
Slide 159: Circular economy – Focus Solar
Circular economy – Focus Solar Inputs Material Useful Life New Life Cycle Main materials used: 25 years average lifetime Current recyclability ~ 80% (steel, Aluminium No significant volume at the end alumiunium, copper, glass already Glass of life expected before 2040 fully recycled) Copper consider
Slide 160: Circular economy – Focus BESS
Circular economy – Focus BESS Inputs Material Useful Life New Life Cycle Main materials used: 15 years average lifetime Current recyclability ~ 50% (steel, Lithium Copper No significant volume at the end copper fully recycled) Graphite of life expected before 2040 Estimated recyclability at 2025 Iro
Slide 161: Cyber security
Cyber security The Policy, adopted in 2017, addresses the principles and operational processes that support a Cyber Security global strategy of cyber risk analysis, prevention and management. Such Framework is fully Cyber Security Framework applicable to the complexity of regular Information Technol
Slide 162: Innovation
Innovation 7 Hub 3 Hub & Lab 3 Labs dedicated to startups Innovation Hubs/Labs1 14.300+ Startups scouted 580+ engaged in projects Barcelona 125+ scaled-up 10 Hubs involved Crowdsourcing2 Partnerships3 210+ Challenges 1.200+ Sustainability Partnerships 2022 2023-25 13.000+ Proposals 40+ Innovation Pa
Slide 163: Innovation projects samples
Innovation projects samples Gravitational Biometric voice Storage X-Lab Skybot storage system recognition Modular living labs to develop, Development of a robotic New long duration storage Use of voice biometrics as an test and validate BESS platform remotely controlled by technology using heavy loa
Slide 164: Focus on...
Focus on... ene
Slide 165: Advocacy for Climate
Advocacy for Climate Direct Enel is committed to ensuring that its advocacy activities Indirect are conducted in line with the Paris Agreement advocacy advocacy Enel’s positioning on key climate related issues is reflected by its Enel discloses the list of all the main associations it direct advocac
Slide 166: Consolidated position in main ESG Ratings
Consolidated position in main ESG Ratings focused on covering most material issues for the Energy sector The most comprehensive ESG The widest used by investors Special focus on transparency SUSTAINALYTICS Focused on ESG Risk and nuclear assessment2 88 90 AAA AAA BBB 4.7 4.9 33.4 22.8 21 BBB Highest
Slide 167: Climate Action 100+ Net Zero Company Benchmark
Climate Action 100+ Net Zero Company Benchmark Enel is the first and only company to fully align disclosures with Climate Action 100+ Net Zero Company Benchmark1 166 .0 1 17 21 14 17 32 146 .0 37 126 .0 57 53 81 106 .0 68 69 86. 0 101 98 144 66. 0 69 109 38 92 46. 0 26. 0 74 69 40 33 29 41 6.0 13 14
Slide 168: Corporate Governance
Corporate Governance ene
Slide 169: Corporate Governance Structure
Corporate Governance Structure BoD’s composition 89% Shareholders’ meeting Audit firm 9 members1 11% Board of Statutory Board of Directors Auditors (3 members) Independent Executive Nomination and Control and Risk Related Parties Corporate Governance and Compensation Committee Committee Committee Su
Slide 170: Board nomination and election
Board nomination and election BoD’s Members Slate voting system Enel’s Board of Directors consists of three to nine The appointment of the entire Board of Directors members who are appointed by the ordinary shareholders’ takes place according to a slate voting system, meeting for a term of up to thr
Slide 171: Board composition
Board composition Board of Directors Board of Directors’ diversity Michele Crisostomo Chair Gender Age Tenure (C) Corp. Governance & Sust. C. Female Male CEO and 22% 22% Francesco Starace General Manager 44% 56% (C) Control & Risk C. 45% 11% Cesare Calari 67% Nomination & Compensation C. 33% Costanz
Slide 172: CEO Remuneration
CEO Remuneration Overall structure Compensation accrued in 2022 equal to: 3,291,599 € (-28% vs 2021) The CEO remuneration was Market Cap: between the median and third quartile2 Enel’s position subject to a benchmark vs the Peer Revenues: between the third quartile and the ninth decile2 analysis perf
Slide 173: CEO's short-term variable remuneration
CEO’s short-term variable remuneration1 Macro objective Objective Weight2 Entry Target Over Type of target (50%) (100%) (150%) Ordinary consolidated Profitability 40% 6.07 €bn 6.20 €bn 6.26 €bn Economic net income Cash and debt FFO/Consolidated 30% 28.0% 28.9% 29.2% Financial management net financia
Slide 174: Long-term variable remuneration
Long-term variable remuneration1 150% of the base amount is assigned in Enel shares2 Macro objective Objective Weight3 Target Over I Over II Type of target (130%)4 (150%) (280%)4 Enel’s TSR Enel’s TSR Enel’s TSR Performance TSR5 45% = 100% of = 110% of ≥ 115% of Market Index’s TSR Index’s TSR Index’
Slide 175: CEO remuneration
CEO remuneration Termination agreements Pro rata temporis rule Severance payment In case of misalignment between the It was confirmed a severance payment equal to 2 years of fixed performance period of the 2022 LTI plan and compensation payable only in the event of: the term of office of CEO/GM, due
Slide 176: 2023 Remuneration Policy
2023 Remuneration Policy Main changes vs 2022 Group Opex objective remooved MBO FFO/Consolidated net financial debt objective weight increased to 30% (from 20%) to further objectives1 emphasize the importance of maintaining a solid financial structure GHG emissions reduction objective weight increas
Slide 177: Enel Group's listed companies
Enel Group’s listed companies (as of March 31st, 2023) 64.9% 82.3% 70.1% Chile Américas1 93.5% 99.1% 100% 100% Enel Gx Chile Enel Dx Chile Enel Brasil Enel Perú 92.6% 74.1% 99.7% 83.2% 83.6% 96.5% Pehuenche Enel Dx Ceará Enel Dx Rio Enel Dx Perú2 Enel Gx Perú Enel Gx Piura Unlisted companies 1. Also
Slide 178: Disclaimer
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 on Enel S.p.A.’s curr
Slide 179: Contact us
Contact us Contacts Email investor.relations@enel.com Phone +39 06 8305 7975 Investor Relations App Monica Girardi iOS Android Head of Group Investor Relations Investor Relations team Federico Baroncelli Serena Carioti Gaia Cherubini Federica Dori Fabrizio Ragnacci Channels Danielle Ribeiro da Encar