Enel Spa · MIL:ENEL
Enel Spa — Investor Presentation (August 2021)
191 slides from Enel Spa's investor presentation, August 2021
Slide 1: Investor Presentation
Investor Presentatio Nn
Slide 2: Agenda
Agenda The next 10 years Enel @2030 Our ambitions Value for all The next 3 years Our ambitions in medium-term targets Sustainable growth and value Enel @2023 Sustainable finance & financial management De-risking targets 2021-23 Targets & Closing remarks FY 2020 consolidated results H1 2021 consolida
Slide 3: Enel @2030 - The next 10 years
Enel @2030 The next 10 years
Slide 4: The energy world will be completely transformed over the next decades
The energy world will be completely transformed over the next decades… 12 10 (TW) 12.0 8 +4x 6 Global RES Capacity 4 2 0 2.7 2019 2040 60% 50% 40% 56% Share of capacity connected to +23 pp 30% 33% 20% distribution grids1 10% 0% 2019 2040 (kTWh) 33 31 29 +43% 27 33 25 23 Electrified energy consumptio
Slide 5: Platform-based business models will manage increasing complexity
…and platform-based business models will manage increasing levels of complexity... Why utility as a platform? Generation sources Consumer Services Scale & efficiency Utility Replicability of ‘plug & play’ models, as a marginal costs close to zero ‘platform’ Prosumer Value for customers Smart service
Slide 6: Driving data-flows across company structures
… while driving data-flows across company structures From the Sylos age... …to the digital platform ...enabling new operating and architechture… business models Customers Platform Business Model Business needs Creating new shared value from the relationship with ecosystems Commodity Equipment Produc
Slide 7: Enel is the leader in asset classes at center of transformation
Enel is the leader in the asset classes that are at the center of this transformation… 74 mn 49 GW RES capacity1 end users RES capacity3 End users3 Customers3 43% (GW) (mn) (mn) EBITDA 55 70 70 2020 74 50 38% 60 70 49 60 45 17.9 €bn 40 50 50 35 40 40 30 38 51 19% 25 32 30 38 31 30 37 20 20 20 Enel 2
Slide 8: Digital and platform development journey
…as well as in the digital and platform development journey Platformisation process Enel’s Platform CURRENT FUTURE >2020 Global development, E&C and asset management platforms Global development and asset 2016-19 management platforms Setting the Enel as an array Customer operation digital foundation
Slide 9: Leadership in asset classes and digital & platform create value
Leadership in asset classes and digital & platform open us new ways to create value Models to create value Activities Ownership business model Operating platforms Direct investments in growing renewables, Offer operating platform services to third networks and customers supporting long parties throu
Slide 10: Reshaping global energy sector calls for unprecedented investments
Reshaping global energy sector calls for unprecedent investments levels… Investments Yearly Average investments share 2020-40 RENEWABLES >4x 1.4 0 (USD trl) 1.2 0 1.0 0 2.5 0.8 0 0.6 0 1.2 45% 2.6 0.4 0 0.2 0 0.0 0 0.3 2 2010-2019 2020-2040 ~3x NETWORKS >2x 0.7 0 0.6 0 1.5 0.5 0 0.6 24% 0.4 0 0.3 0
Slide 11: Where Enel will keep the leadership going forward
…where Enel will keep the leadership going forward… Investments activated for the energy transition Ownership model 10 0.00 2020 2030 ~190 Ownership model 90 .00 Consolidated RES 45 ~120 capacity (GW) >150 €bn 80 .00 RAB (€bn) ~42 ~70 70 .00 60 .00 % Digitalized users 60% ~100% 50 .00 Stewardship mo
Slide 12: Ownership business model
…through its ownership business model… Capex by GBL Value creation KPIs Ownership model 2021-30 >150 €bn 5%3% EBITDA/ ~11% Capex (%) 46% 2021-30 RAB/end >150 €bn 46% user +35% Stewardship model B2C customer 2x value (€/cl/y)1 ~40 €bn Renewables Conventional generation Networks Retail Enel Third part
Slide 13: Stewardship business model catalysing third party investments
…and a structured stewardship business model that will catalyse additional third parties investments… Capex by cluster Enel’s adjusted EBITDA1 Enel’s direct investments Ownership model ~10 €bn >150 €bn 4.0 2.8 Fair Value of JVs 2021-30 2021-30 & Partnerships ~40 €bn ~17 €bn ~10 €bn Stewardship model
Slide 14: Creating long term growth
…creating long term growth… EBITDA 2020-2030 (€bn) Net Income 2020-2030 (€bn) CAGR CAGR 35 6-7% 35 5-6% 30 30 FY 2020 25 FY 2020 25 17.9 5.2 20 20 15 ~18.0 15 5.0-5.2 10 10 5 5 0 0 2020E 2030 2020E 2030 14
Slide 15: Sustainable shared value
…and sustainable shared value Decarbonization Electrification Digital & Platforms ~25% reduction of household ~3x improvement in service >200 mn saved BoE1 spending3 quality (SAIDI) 80% Scope 1 GHG emission 40% GHG emissions 85% GHG emission reduction reduction from 2017 households reduction4 from c
Slide 16: Enel @2030 - Our ambitions
Enel @2030 Our ambitions
Slide 17: Renewables Super Major with the world as footprint
Renewables Super Major with the world as geographic footprint 3x RES capacity increase 2021-30 catalyzed investments1 (GW) Triple our renewable capacity by 2030 Global market 2.5% >4% share Strategic actions Support profitability through global ~145 20 footprint and integrated position 14 0.00 12 0.
Slide 18: Ownership model in GPG: tripling capacity
Global Power Generation The ownership model in GPG: +75,000 MW in 10 years, tripling our capacity 2021-30 Owned capacity Capex & Profitability RES Capacity evolution Capacity split Gross capex1 140.0 By geography By tech Maintenance 120.0 5 EBITDA/ 100.0 Capex ~53% 80.0 ~75 46% ~75 GW ~11% 54% ~65 €
Slide 19: Stewardship model in GPG
Global Power Generation The stewardship model in GPG: catalysing capital for accelerated value creation and growth Stewardship additional capacity Capex stewardship model (GW) Value creation 30.0 25.0 Enel’s adjusted 4.3 €bn ~25 EBITDA 21-301 20.0 2021-30 ~2 ~18 ~20 €bn 15.0 ~21 Fair value of c.3.0
Slide 20: A GW pipeline growing worldwide
Global Power Generation Leveraging on A 305 GW pipeline that is growing worldwide Renewables Pipeline (GW) Mature Pipeline GENERATION STORAGE By technology By geography +2.2x ~179 24% 44% 33% ~305 ~73 GW ~73 GW 55% 14% ~73 ~141 1% 29% ~40 ~12 Gross Gross Early stage Mature BESS 2 In Europe Pipeline
Slide 21: Worldwide platform-based development
Global Power Generation Leveraging on A worldwide platform-based development1 BD global presence North & Central Europe Headcount A big platform America >240 Headcount External HC ~ 120 (#) >450 (#) ~1,000 Africa, Asia & A highly adaptive & growing platform Latin America Oceania Pipeline yearly Pipe
Slide 22: Worldwide platform-based E&C
Global Power Generation Leveraging on A worldwide platform-based E&C1 Built capacity evolution (MW) A global community Projects managed (#) 45 58 73 96 External Countries with Workers (#) ~12.3k opened Sites 14 3,106 2,841 Focus on delivery Projects Sites with Under ~96 automation 30% construction s
Slide 23: Worldwide platform-based O&M model
Global Power Generation Leveraging on A worldwide platform-based O&M model1 RES global presence North & Central A big platform Europe Headcount America 78% 75% Capacity (GW) External HC ~5k Plants3 ~1.2k (#) 9.7 3% 22.8 >360 >3.1k 21% 18% 4% Hydro A highly digital platform Solar Latin Wind Africa, A
Slide 24: Hybridization of renewables - Battery storage
Global Power Generation Leveraging on Hybridization of renewables - Battery storage BESS energy storage 2030 Cumulated capex 2021-30 Projects under Value proposition Italy development USA Actual BESS RES electricity and BESS Spain & Portugal integration provides competitive Colombia decarbonization
Slide 25: Hybridization of renewables - Green hydrogen
Global Power Generation Leveraging on Hybridization of renewables - Green hydrogen Green hydrogen capacity (MW) H2 projects under Value proposition Italy USA Spain development Competitive full decarbonization offer bundling RES electricity and green H2 supply 2,600 >2,000 Main value drivers >17x 2,1
Slide 26: Acceleration in RES capex and capacity share
Global Power Generation Acceleration in RES capex resulting in a c.80% RES share capacity and production Capacity evolution1 Production evolution2 (GW) (TWh) CO2 emissions (gCO2eq/kWh) ~400 250.0 390.0 2020 2030 340.0 200.0 >170 214 82 290.0 240.0 217 ~80% 150.0 190.0 Emission free production (%) 10
Slide 27: Accelerating exit from coal to 2027
Global Power Generation Accelerating exit from coal to 2027 from 2030 Coal capacity evolution (GW) 2017 2020 2027 18.0 Coal production Coal phase 70.5 13.2 - 16.0 16.0 (TWh) out brought 14.0 forward Coal production 12.0 11.7 28% 6% - from 2030 on total 10.0 8.9 8.0 6.0 Coal emissions 65 13.6 - (mn t
Slide 28: Boosting GHG emissions reduction target
Global Power Generation Boosting reduction target in GHG emissions, in line with 1.5° scenario -80% 500.0 00 450.0 00 400.0 00 350.0 00 414 FULL 300.0 00 250.0 00 298 DECARBONIZATION 200.0 00 Scope 11 150.0 00 214 (gCO2eq/kWh) 100.0 00 148 82 50.00 0 0.000 2017 2019 2020 2023 2030 2050 Previous SBTi
Slide 29: Global leader in networks for scale, quality and resiliency
Global leader in networks for scale, quality and resiliency RAB SAIDI Adoption of a platform operating (€bn) (min) model to guarantee management of future networks -61% Strategic actions Ensure the highest level of quality ~70% 30 0 80 at the lowest cost across all grids 70 25 0 60 ~70 259 20 0 50 M
Slide 30: Capex expansion to enhance global leadership
Infrastructure & Networks Capex expansion set to enhance global leadership position 2021-30 Cumulated capex1 Regulated Asset Base (€bn) By geography By nature ~40% ~70% 80 23% 70 60 ~70 ~60 €bn ~60 €bn 50 10% 40 30 ~42 20 ~60% 67% 10 - Europe RoW 2020 2030 Quality & Resiliency Digitalisation Average
Slide 31: Create value without increasing costs for end users
Infrastructure & Networks Create value without increasing costs for end users Value creation Quality (SAIDI) Tariff/end user1 (€/cl) RAB/end user (€/cl) Opex/end user1 (€/cl) 2020 -61% +36% -27% FLAT 800 45 259 min 160 40 750 140 ~760 35 41 2030 ~140 ~140 700 120 30 650 100 600 25 30 80 550 20 ~100
Slide 32: A single global platform
Infrastructure & Networks Leveraging on A single global platform A single platform… ..enhancing key business drivers… ..for a superior performance 2020 2030 Digitalization Smart meters coverage 60% ~100% Reliability User/Remote ~350 ~200 control point Efficiency Opex/End 41 30 user1 (€/cl) Resilienc
Slide 33: Unparalleled scale of network operations
Infrastructure & Networks Leveraging on An unparalleled scale of our network operations1 Enel current positioning in networks Europe A big platform 1st DSO External HC Grids length (#) 51.4k (mn km) 2.2 2nd DSO A highly digitalized network Latam 1st DSO Smart meters Remote control (mn) 44.3 points (
Slide 34: Highest digitalisation expertise
Infrastructure & Networks Leveraging on The highest digitalisation expertise Digitalization investments Smart meters Digitalisation KPIs (mn) 46 .50 46 .00 45 .50 45 .00 44 .50 44 .00 2020 43 .50 43 .00 42 .50 42 .00 41 .50 41 .00 40 .50 40 .00 39 .50 39 .00 38 .50 38 .00 37 .50 37 .00 36 .50 36 .00
Slide 35: Distinctive Intellectual Property value
Infrastructure & Networks Leveraging on Distinctive Intellectual Property value Market share by vendor1 Smart meter as the pivot of a digital network architecture Vendor 1 TLC for field application 20% Ultra broad-band Optical fiber 444 mn Renewables integration 19% RES dispatching, Storage Enel Dig
Slide 36: B2C - Reference energy choice
B2C – Reference energy choice, enabling electrification of the customer base Customer value1 Volume sold2 (€/Cl/y) (TWh) Increasing customer value enabling electrification through platforms Strategic actions ~2x 2.5x 10 0 15 0 Allowing electrification of 13 0 90 ~100 consumption through integrated
Slide 37: B2B - Leading energy partner
B2B - Leading energy partner of global and local businesses Commodity & Customer value1 Beyond commodity value2 (€/cl/y) (Gross Margin, €bn) Supporting B2B customers in fostering efficiency and sustainability 40 0 ~1.7x 2 +1.7x 1.9 Promote the electrification of Strategic actions 1.8 35 0 consumptio
Slide 38: B2G - Trusted partner for cities
B2G - Trusted partner to support cities in their decarbonization and sustainability path Electric buses1 Street lighting (k) (mn) Allow decarbonisation through electrification of public transport Strategic actions +1.5x 12 000 4.5 Enable services for sustainable, 4 smart and circular cities 10 000 3
Slide 39: Largest customer base
Customers Leveraging on The largest customer base with 70 mn customers1 World’s largest customer base in power market Europe A big platform Total Customers Headcount customers 42 mn (#) 70 mn (#) 9.5k Latam A highly digitalized customer base Total Digital Digital Customers interactions 1 mn customer
Slide 40: Digital platforms to handle the business
Customers Leveraging on Digital platforms to handle the business1 Operating platform for customers at Group’s level Customer segments covered by Enel X plaftorms Opex/ customer2 (€/cl) 25 .00 B2C B2B B2G 20 .00 15 .00 22.6 Zero back office 10 .00 5. 00 14.0 Offering integrated with commodity - 2020
Slide 41: Growing portfolio of integrated offering
Customers Leveraging on A growing portfolio of integrated offering B2C key offering B2B key offering B2G key offering Charging points (#) Demand Response (GW) Electric buses1 (k) 12 000 +3x 45 00 25 10 000 +23x >10 40 00 >4mn 12x 20 35 00 80 00 30 00 15 ~20 60 00 25 00 20 00 10 40 00 15 00 10 00 186
Slide 42: Enel @2030 - Value for all
Enel @2030 Value for all
Slide 43: The path to transformation
The path to transformation Decarbonization Electrification Digital & Platforms Total renewable capacity (GW) Free customers volumes (TWh) End users (mn) RES share % digitalized on total 35 0.00 10 0.00 14 0.00 30 0.00 90 .00 end users 12 0.00 ~145 25 0.00 80 .00 70 .00 >90 280 10 0.00 74 60 .00 20 0
Slide 44: Creating value for customers, society and environment
Creating value for our customers, society and the environment Customers Society and Environment SAIDI GHG Emissions scope 1 (min/y) (gCO2eq/kWh) 20 0.00 30 0.00 15 0.00 214 25 0.00 10 0.00 20 0.00 259 50 .00 82 0.0 0 15 0.00 10 0.00 2020 2030 50 .00 ~100 Circularity improvement3 0.0 0 2020 2030 10 0
Slide 45: Creating value for Enel
Creating value for Enel Decarbonization Electrification Digital & Platforms EBITDA/MWh1 (€) 2021-30 Enel’s adjusted EBITDA from stewardship model5 45 .00 +29% 40 .00 4.0 B2C customer value4 (€/cust/y) 2.8 35 .00 30 .00 40 Operating platforms 31 25 .00 >17 €bn 20 .00 15 .00 2020 2030 Business platfor
Slide 46: Creating value for shareholders
Creating value for shareholders 3Y Dividend Policy (DPS €/Share) 3Y Total Return2 Average DY CAGR20 6% Guaranteed ~5% DPS FY 2020 0.358 0.40 0.43 >13% 0.38 0.35 Earnings 0.2 0 1 8%-10% CAGR 2020 2021 2022 2023 2030 Growing dividends to 2030 3Y Total Return ~13% 46 1. Minimum guaranteed dividend 2. E
Slide 47: Enel @2023 - The next three years
Enel @2023 The next three years
Slide 48: Long term transition kicks off now
Long term transition kicks off now… Investments activated for the energy transition Ownership model 10 0.00 2020 2023 ~190 Ownership model 90 .00 Consolidated RES 45 ~60 capacity (GW) 80 .00 38 €bn RAB (€bn) ~42 48 70 .00 60 .00 48 % Digitalized users 60% 64% 50 .00 40 .00 Stewardship model ~160 Ste
Slide 49: Investments through the ownership business model
…driven by investments through the ownership business model… Capex by GBL Value creation KPIs Ownership model 2021-23 ~38 €bn 5% 7% EBITDA/ ~12% >12% Capex (%) 2021-23 RAB/end 43% ~38 €bn +11% 45% user Stewardship model B2C customer +26% value (€/cl/y)1 ~ 10 €bn Renewables Conventional generation Ne
Slide 50: Supported by the stewardship business model
…supported by the stewardship business model… Investments by cluster Enel’s adjusted EBITDA1 Enel’s direct investments Ownership model ~2 €bn Value of contracts ~ 38 €bn 0.3 from 20232 8.6 €bn 2021-23 1.4 2021-23 ~10 €bn 3.3 €bn Fair Value of 1.6 JVs & Pnships Stewardship model 4 €bn ~10 €bn ~2 €bn
Slide 51: Mid term growth and profitability
… crystallising already in the mid term growth and profitability… EBITDA (€bn) Net Income (€bn) CAGR 20-30 CAGR 20-30 35 CAGR 20-23 5-6% 12 6-7% 30 5-6% 10 CAGR 20-23 FY 2020 25 8 8-10% FY 2020 17.9 20 6 15 5.2 4 ~18 10 5 2 5-5.2 0 0 2020E 2023 2030 2020E 2023 2030 +300 bps GNI/EBITDA 51
Slide 52: On sound financial metrics
…on sound financial metrics FFO/Net Debt Net debt/EBITDA Stable Stable +400bps 27 % FY 2020 2.8 2.5x 2.7 25 % 2.6 FY 2020 2.5 23 % 2.4 25% 21 % 2.3 26% 2.2 2.7x 2.7x 19 % 22% 2.1 2 17 % 1.9 1.8 15 % 2020E 2023 2030 2020E 2023 2030 52
Slide 53: Enel @2023 - Our ambitions in medium-term targets
Enel @2023 Our ambitions in medium-term targets
Slide 54: Power Generation: the renewable super major
Power Generation The renewable super major Total RES capacity Cumulated catalyzed investments1 19.5 GW of new capacity (GW) (€bn) 2023 installed capacity halfway through 2030 targets +40% 90 .0 ~145 ~85 Unchanged profitability levels 80 .0 68 Strategic actions 50 .00 ~25 under the ownership model vs
Slide 55: Renewables ownership business model
Global Power Generation Renewables ownership business model 2021-23 Owned capacity Capex & Profitability RES Capacity evolution Capacity split Gross capex1 70.0 By geography By tech 60.0 1.1 EBITDA/ IRR-WACC 50.0 15.4 24% Capex (bps) ~58% 4.2 40.0 15.4 GW 16.8 €bn 30.0 ~61 >12% ~200 ~42% 45 11.5 20.
Slide 56: Renewables stewardship business model
Global Power Generation Renewables stewardship business model Stewardship additional capacity Capex stewardship model (GW) Value creation EBITDA 300 €mn 9.0 Cumulated 21-23 8.0 2021-23 0.5 ~8 7.0 3.3 3.8 €bn Future value of 6.0 4.1 +1.3x 5.0 contracts vs 20201 4.0 3.6 3.0 Fair value of JVs xx 900 €m
Slide 57: GW of diversified pipeline fuels growth
Global Power Generation 305 GW of highly diversified pipeline fuels future growth ambitions… Renewable pipeline1 (GW) Breakdown by growth cluster 350.0 300.0 Mature Pipeline 23% 250.0 ~73 GW ~179 200.0 ~73 GW 57% 150.0 ~305 ~5 20% ~45 100.0 50.0 ~23 ~40 ~12 0.0 Integrated presence Gross Early stage
Slide 58: High visibility on mid term development targets
Global Power Generation …with high level visibility on mid term development targets 2021-23 Renewables growth1: addressed share vs pipeline2 (GW) 2021-23 Pipeline/Residual target 25.0 ~73 GW ~4x 20.0 19.5 BY CLUSTER 50 15.0 13.2 Beyond 2023 Integrated presence 3.0x Potential integrated 10.0 presence
Slide 59: Further acceleration of decarbonisation
Global Power Generation The next three years will mark a further acceleration of power generation decarbonisation… Capacity evolution1 Production evolution2 (GW) (TWh) CO2 emissions (gCO2eq/kWh) ~400 2020 2023 250.0 390.0 2030 340.0 200.0 >170 214 148 82 290.0 265 150.0 240.0 217 ~80% RES ~100 >80%
Slide 60: Growth & profitability in Global Power Generation
Global Power Generation …as well as of growth & profitability EBITDA evolution (€bn) +13% 2020 2023 Δ EBITDA/MWh 0.3 (€/MWh)2 31 34 +10% FY 2020 9.0 1.5 7.7 8.0 6.8 4.7 7.0 (0.9) EBITDA/MW 6.0 (k€/MW)2 71 85 +20% 5.0 FY 2020 4.0 4.7 6.5 Opex/MW 3.0 2.2 2.0 (k€/MW)2,3 32.6 30.4 -7% 1.0 2.1 1.2 0.0 20
Slide 61: Infrastructure and Network: global leader
Infrastructure and Network Global leader in networks for scale, quality and resiliency RAB (€bn) Quality index - SAIDI (min) Capex deployment fuels RAB growth -12% +14% Strategic actions Profitability supported by more than 80 30 0 400 €mn efficiencies 70 25 0 60 ~70 259 50 20 0 228 Quality and effi
Slide 62: Investments lead to 14% growth in RAB
Infrastructure & Networks Sharp increase in investments leads to a 14% growth in RAB… Cumulated capex (€bn) Group RAB (€bn) (€bn) 2021-23 35 .00 Cumulated capex 30 .00 +14% 80 +37% ~60 25 .00 70 12% 60 ~70 20 .00 16.2 48 50 ~42 15 .00 11.8 4.8 15 16.2 €bn 40 23% 11 10 .00 4.0 11.4 30 7.8 20 65% 33 5
Slide 63: Progression in digitalization and quality of service
Infrastructure & Networks …and progression in digitalization and quality of service End users and digitalization process Quality and reliability End users (mn) Share of digitalized end users 2020 2023 2030 +3% 2020 100 SAIDI (min) 259 228 c.100 ~77 90 80 74 ~90 70 60% 2023 SAIFI (#) 2.9 2.5 ~2 60 28
Slide 64: Double digit growth supported by capex and efficiencies
Infrastructure & Networks Double digit growth supported by capex acceleration and efficiencies EBITDA evolution 2020 2023 Δ (€bn) RAB/end user +19% (€/cl) ~560 624 +11% 0.3 10.0 0.5 Opex/end user 9.5 41 34.5 -16% 0.4 9.5 (€/cl)1 FY 2020 9.0 8.5 0.3 7.7 8.0 EBITDA/end user 104 124 +19% 7.5 (€/cl) 7.0
Slide 65: B2C - Reference energy choice
B2C – Reference energy choice, enabling electrification of the customer base Customer value1 Volumes sold2 +10 mn free market customers on (€/cl/y) (TWh) end of regulated segment and integrated commercial offering Strategic actions +59% 19 0 Initial take up of electrification push 100 17 0 +28% 90 t
Slide 66: B2B - Leading energy partner
B2B - Leading energy partner of global and local businesses Customer value1 B2B Gross margin2 (€/cl/y) (€bn) +10% increase in customer value in first 3 years supported by integration of beyond commodity Strategic actions 1.9 +45% +27% 2 40 0 1.8 Value generation driven by 35 0 1.6 1.4 platform-based
Slide 67: B2G - Trusted partner for cities
B2G - Trusted partner to support cities in their decarbonization and sustainability path Electric buses1 Street lighting Steep acceleration for E-buses with (k) (mn) a six-fold increase of fleet deployed Strategic actions Stronger leadership on public 12 000 +6x 4.5 +21% 4 lighting with double digit
Slide 68: Increasing share of free market customer base
Customers Increasing share of free market customer base Customers Electricity sold (mn) (TWh) 45.0 42 39 250.0 205 40.0 180 35.0 5 200.0 13 Developed 19 43 30.0 +40% 150.0 markets 25.0 20.0 +48% (Europe)1 15.0 34 100.0 192 10.0 23 50.0 137 5.0 0.0 0.0 2020 2023 2020 2023 180 35 160 30 140 25 120 20
Slide 69: Expanding customer value drives EBITDA up by 36%
Customers Expanding customer value drives EBITDA up by 36% EBITDA evolution 2020 2023 Δ (€bn) B2C customer value1 (€/cl/y) 71 91 +30% +36% B2B customer 0.3 value1 (€/cl/y) 200 289 +45% 4.6 0.4 0.1 FY 2020 4.1 0.5 (0.1) 4.5 B2G Revenues +60% vs 2020 3.4 3.6 3.1 3.3 Opex/Customer -17% 2.6 2.1 (€/cl)2
Slide 70: Retail and Enel X
Customers Retail and Enel X Ownership - Retail Stewardship - Enel X Cumulated capex EBITDA evolution (€bn) Cumulated capex EBITDA evolution (€bn) 61% Digital +25% 1 74% 5 4 4 1 +2.5x 2021-23 3 2021-23 0 1.7 €bn 3 4.3 €bn 0 2 4.0 0.5 2 3.2 26% 0 39% 1 0 0.2 CTA 1 - - Enel Third parties 2020 2023 2020
Slide 71: Enel @2023 - Sustainable growth and value
Enel @2023 Sustainable growth and value
Slide 72: Capex split and EBITDA growth by GBL
Capex split and EBITDA growth by GBL Cumulated catalyzed investments 2021-23 Incremental EBITDA 2021-23 (€bn) ~90% SDG aligned1 2023 vs 20 6% 16% 8% +1.7 48 €bn -0.2 34% 36% 80%/90% EU +1.8 Taxonomy eligible1,2 Renewables +1.1 Conventional generation Networks Retail & Enel X Third parties 72 1. Of c
Slide 73: Creating value for Enel
Creating value for Enel Decarbonization Electrification Digital & Platforms EBITDA / MWh1 (€) B2C customer 2021-23 Enel’s adjusted value4 (€/cl/y) EBITDA from stewardship model5 +10% 10 0.00 35 .00 90 .00 80 .00 0.3 30 .00 34 70 .00 91 31 60 .00 50 .00 71 Operating platforms 25 .00 40 .00 30 .00 1.4
Slide 74: Sustainable finance & financial management
Enel @2023 Sustainable finance & financial management
Slide 75: A strong financial position
A strong financial position Source of funds allocation 2021-23 Net debt evolution 60.0 (€bn) (€bn) 28 .5% 25% 26% 26% 9.4 (40.0) 46.2 50.0 80.0 23 .5% 70.0 40.0 60.0 18 .5% 30.0 50.0 40.0 13 .5% 20.0 57 - 58 30.0 10.0 (15.6) 20.08.5 % 45.4 10.0 0.0 - 3.5 % Sources Incremental Gross capex1 Dividends
Slide 76: Excellent credit quality and distributed maturities
Excellent credit quality and well distributed maturities Net Debt/EBITDA of top European Utilities1 Liquidity and debt maturity by year (€bn) Maturities/Gross Debt 30 3.1% 8.3% 8.5% 25 3.5 3.4x 20 3 2.5x 2.7x 15 2.5 2 10 20.2 13.5 1.5 1 5 0.5 5.6 5.9 0 0 2.0 2020 20232023 Available 2021 2022 2023 20
Slide 77: A growing share of sustainable finance
A growing share of sustainable finance Sustainable Finance evolution Expected impact on cost of debt +15pp >20pp 120.0 -15/-20 bps 100.0 30% 80.0 33% 60.0 2020 52% 2023 48% 2030 40.0 67% >70% 20.0 0.0 Conventional Sustainability Sustainable Bond Bond benefit Kd Sustainable sources Traditional source
Slide 78: Synergy between private and public sources
The synergy between private and public sources Sustainability-Linked Private Sources Public Sources Commercial Bonds Loans and RCFs1 Loans1 Papers Size 11.1 €bneq 8.4 €bn2eq 14.1 €bn2 0.8 €bneq KPIs Pricing adj. 55% @2021 RES Capacity/Total Capacity 125 gCO2eq/kWh 60% @2022 RES Capacity/Total Capaci
Slide 79: EU recovery plan to drive European investments
EU recovery plan to drive an increase in European investments EU recovery plan1 Enel capex in Europe (€bn) (€bn) 2000.0 750 Just transition 1800.0 Flexible generation +52% Loans 1,824 Circularity & innovation 1600.0 360 Grants2 1400.0 390 1200.0 24.2 Digitization 1000.0 1,074 60% Resilience ~40% to
Slide 80: Further reduction in cost of debt
Further reduction in cost of debt Financial strategy for 2021-23 Cost of debt evolution 2020-23 Amount Expected Current 32% 48% (€bn) cost1 total cost Centralized new 4.1 % 4.0% 6.5 0.9% 3.9% funding 3.9 % 3.8% 3.7% 3.7 % Bond refinancing 8.3 0.9% 3.8% 3.7% 3.6% 3.5 % 3.4% 3.3 % Bank loans 4.7 1.3%
Slide 81: Enel @2023 - De-risking targets
Enel @2023 De-risking targets
Slide 82: 2021-2023 targets maintain a low risk profile
2021-2023 targets will maintain a low risk profile Decreasing risk perception Business model highly visible and stabilized Enel Beta – 2015-20201 Cumulated EBITDA 2021-23 REN development secured Renewables Production secured 1.2 1.14 Additional Capacity 58% 19.5 1.1 -25% 2021-23 (GW) 80% ~400 TWh 1
Slide 83: Power production volumes and margins locked in
Power production volumes and margins locked in thanks to long customer position in Europe… Integrated margin – Generation GM vs retail GM Hedging position on price driven production 160% 60.0 Delta Pool price Integrated140% STABLE STABLE 50.0 Hedging of margins indexed margin hedged Coal & Gas based
Slide 84: PPAs offering long term visibility in RoW
…with Power Purchase Agreements offering long term visibility in RoW Growth of PPA portfolio PPAs key features (TWh) By Off-taker rating By Duration +20% 5% 17% 24% 28% 22 0 26% ~230 ~230 TWh ~230 TWh 17 0 191 12 0 30% 18% 70 52% 49% 58% 20 AAA to A- BB+ to BB- >15 yrs 5-10 yrs 2020-22 2021-23 BBB+
Slide 85: 2021-23 Targets
2021-23 Targets
Slide 86: 2021-2023 Financial Targets
2021-2023 Financial Targets Earnings growth 2020 2021 2022 2023 CAGR2020 Ordinary EBITDA (€bn) 17.9 18.7-19.3 19.7-20.3 20.7-21.3 +5% / +6% Net ordinary income (€bn) 5.2 5.4-5.6 5.9-6.1 6.5-6.7 8% / 9% CAGR2020 Value creation Guaranteed DPS (€/sh) 0.358 0.38 0.40 0.43 +6% Implied Dividend Yield1 (%)
Slide 87: Closing remarks
Closing remarks
Slide 88: Closing remarks
Closing remarks Global Unparalleled Maximized Sustainable Renewable Networks Customers Value super major worldwide value for all Best in class Total Return 88
Slide 89: Full Year Consolidated results
Full Year Consolidated results
Slide 90: Full Year 2020 Consolidated results
Full Year 2020 Consolidated results Francesco Starace CEO
Slide 91: Key highlights of the year
Key highlights of the year Results & shareholders Push on Group Credit rating remuneration decarbonisation simplification improvements 5.2 €bn +3.1 GW Merger of EGP Net Income New record on Latam into at top of the Moody’s renewable Enel Americas range upgrade to Baa1 built capacity effective as of
Slide 92: Operational and financial performance amidst COVID-19
A remarkable operational and financial performance amidst COVID-19 pandemic Operational delivery… …coupled with outstanding financial performance Continued growth 2020 Total Shareholder Return3 in renewables +3.1 GW Net income Digitalized end 22% 5.2 €bn users1 +500k DY 5% 14% DPS Increasing Share c
Slide 93: Enhancing green leadership position
Enhancing green leadership position entering the new decade 55 Unmatched and proven …to deliver the RES track record… super major 50 RES 45 40 49 Capacity 35 30 38 32 (GW)1 25 20 RES built capacity (GW) RES capacity (GW) Enel 2nd 3rd 3x 14 0.00 8.0 0 ~7 12 0.00 7.0 0 70 74 10 0.00 60 6.0 0 End users
Slide 94: Scale, quality and resiliency of networks
Fostering scale, quality and resiliency of the backbone of the energy transition 55 50 Value creation without increasing costs for end users RES 45 40 49 Capacity 35 End users (mn) Quality (SAIDI) 30 38 32 (GW)1 25 -12% 20 2019 Enel 2nd 3rd 10 0 90 ~90 80 294 min 70 74 74 70 60 60 74 50 61 2020 End
Slide 95: Positioning to benefit from growth of customers' value
Positioning optimally to benefit from growth of customers’ value 55 Highly urbanized customer base enhances value 50 creation from electrification RES 45 40 49 Capacity 35 38 Total customers B2C Customer value2 (€/Cl/y) 30 32 (GW)1 25 20 Enel 2nd 3rd Europe 42 mn +2x 150 130 70 60 74 110 End users 5
Slide 96: Fully sustainable capex plan, capex up 7% yoy
Delivering on a fully sustainable capex plan, net of currency impact capex up by 7% yoy Capex by business model and GBL Ownership model FY 2019 FY 2020 5%4% Ownership model 10.2 Consolidated RES 42.1 45.0 Stewardship1 10 .00 0.7 capacity (GW) 9.5 €bn Smart meter 2.0 (mn) 13.1 18.2 8.0 0 50% Customer
Slide 97: Global Power Generation key highlights
Global Power Generation Production evolution1 Renewables (TWh) Conventional Generation (TWh) xx Production on total 300.0 Production from renewables Capacity 239.4 217.0 Capacity overtakes conventional sources on total2 250.0 on total2 on greener installed base Key highlights 200.0 -22% Conventional
Slide 98: Record 3,100 MW built in 2020
Set new additional capacity record with 3,100 MW built in 2020 notwithstanding COVID-19 Renewable capacity evolution (GW) Emission free share of production1 45.8 Total capacity 48.6 57% emission free 65% emission free 0.2 0.3 FY 2019 FY 2020 3.7 3.6 239 TWh 217 TWh 2.9 - +3,100 MW 45.0 42.1 Emission
Slide 99: Further acceleration on coal exit
Further acceleration on coal exit to boost GHG emission reduction Coal production (TWh) Coal capacity (GW) xx% Coal production on total1 xx% Coal capacity on total1 -65% -24% Coal production down by 65% yoy 13.00 38.00 12.00 33.00 37.6 2.8 GW of coal capacity 11.00 11.7 28.00 10.00 shut down in 2020
Slide 100: Renewable pipeline up 1.5x
Renewable pipeline up 1.5x enhances visibility on delivery Renewables Pipeline (GW) 2021-23 Additional GENERATION STORAGE capacity 2021-23 Pipeline/Residual target +1.5x ~120 3.5x 10.5 19.5 BY CLUSTER ~206 GW 9.0 Integrated presence 2.4x 141 ~60 Potential integrated ~15 presence 9.0x 10.5 2 Other co
Slide 101: Infrastructure & Networks key highlights
Infrastructure & Networks SAIDI (min.) Smart meter1 (mn) xx Smart meter 2.0 -12% +500k Double digit decrease in SAIDI during COVID-19 year 45.00 300.00 Key highlights 44.50 290.00 294 44.3 44.00 Grid digitalization: 280.00 43.50 43.8 60% of end users with smart meter 270.00 43.00 42.50 260.00 42.00
Slide 102: Retail & Enel X
Retail & Enel X Retail Enel X and new infrastructures Free market Free market FY 2019 FY 2020 power customers (mn) energy sold (TWh)1 +2.3x Charging points2 (k) 82 186 +200k -7% +41% 184.0 Fiber deployment 7.9 11.1 18 200 180 170.7 (Households passed mn) 17 160 17 17.4 140 -10% 17 17.2 120 +17% 17 1
Slide 103: Merger of EGP Latam assets in Enel Américas
Merger of EGP Latam assets in Enel Américas 1 65% 100% Merger effective as of April 1st 2021 Américas Latin America Enel shareholding post transaction2 >75% September End December PTO launched April 2020 2020 March 15th, 2021 2021 PTO launched on 10% of pre- merger share capital @140 CLP/sh BOD laun
Slide 104: Guaranteed DPS and Total Shareholders Return
Total Shareholders Return at 22% DPS (€/Share) 2020 Total Shareholder Return1 +20% Dividend yield Guaranteed DPS 5% +9% 0.43 0.40 22% 0.38 0.358 0.328 0.3 0 17% 2019 2020 2021 2022 2023 Share price increase 2020 DPS above guaranteed 0.35 €/sh Guaranteed DPS double digit growth by 2023 104 1. From Ja
Slide 105: Full Year 2020 Financial results
Full Year 2020 Financial results Alberto De Paoli CFO
Slide 106: Financial highlights (€mn)
Financial highlights (€mn) EBITDA1 Net Income1 FFO Net Debt 17,940 5,197 11,525 45,415 - +9% -1% +1% FY 2019 17,905 4,767 11,630 45,175 1. Ordinary figures 106
Slide 107: Currencies' weakness and electricity demand
Currencies’ weakness over 2020, electricity demand starts recover in H2 Currencies vs. euro1 (∆ yoy) Electricity demand (∆ yoy) FY 2020 H1 2020 H2 2020 FY -9% Italy -5% ARS/EUR -34% -2% -8% Spain -5% BRL/EUR -24% -3% -5% Brazil -1% CLP/EUR -13% 2% 2% COP/EUR Chile +1% -13% -% -2% PEN/EUR -6% Colombi
Slide 108: FX and COVID-19 impact on demand and bad debt
FX and COVID-19 impact on demand and bad debt (€bn) Net of Ordinary FX COVID-19 Bad debt COVID-19 & FX Net of FX and COVID-19, EBITDA would have increased by 9% EBITDA 17.9 1.0 0.73 19.6 COVID-19 impact mainly associated with declining volumes in Latam D&A (6.7) 0.37 (0.29) (6.6) D&A impacted by bad
Slide 109: Ordinary EBITDA in line despite COVID-19 and FX
Ordinary EBITDA in line vs PY despite COVID-19 and FX devaluation impact EBITDA FY 2020 By business model By business line EBITDA net of FX and COVID-19 0.3 +9% versus previous year 4.7 7.7 Generation performance boosted by 17.9 €bn1 17.9 €bn1 renewables development 2.2 17.6 0.2 3.2 Around 350 €mn F
Slide 110: Global Power Generation
Global Power Generation Performance driven by growth in renewables, efficiencies and short position EBITDA evolution (€mn)1 EBITDA by geography1 EGP Conventional Generation & Trading 10,000 +12% 9,000 Positive contribution of 5% 6,203 6,951 new RES capacity 8,000 33% 27% 7,000 FY 2020 Benefits from
Slide 111: GPG - Enel Green Power
GPG - Enel Green Power Continued delivery on renewable growth drives EGP result in 2020 EBITDA evolution (€mn)1 EBITDA by geography1 +2% 500 €mn positive contribution from 4% 5,200.0 0 new capacity developed 29% 42% 4,700.0 0 FY 2020 4,721 Benefit from higher volumes 4,618 4.7 €bn (+6 TWh yoy) 4,200
Slide 112: GPG - Conventional generation and trading
GPG - Conventional generation and trading Production down by 22% yoy, benefits from trading activities and efficiencies EBITDA evolution (€mn)1 EBITDA by geography1 +41% 3,000.0 0 Gas portfolio management 1% 15% and short position 5% 2,500.0 0 2,230 FY 2020 Efficiencies for around 150 €mn 2,000.0 0
Slide 113: Infrastructure and Networks
Infrastructure and Networks EBITDA up by 3% net of currency devaluation and COVID-19 impact EBITDA evolution (€mn)1 EBITDA by geography1 -6% Quality and efficiency programme 10,000 .00 21% 8,228 7,714 drive growth in European networks 27% 8,000.0 0 Latam 2,259 FY 2020 1,598 Demand contraction impact
Slide 114: Retail
Retail Increase in customer base in spite of COVID-19 EBITDA evolution (€mn)1 Free market – Energy sold (TWh)2 -3% -4% 66.2 64.2 Free market customer base increase driven by +300k customers in Italy 16.1 17.2 +7% 3,334 3,197 Italy 50.1 47.0 -6% Regulated 600 Volumes contraction in Spain, markets 6%
Slide 115: Profit & loss (€mn)
Profit & loss (€mn) FY 2020 FY 2019 ∆ yoy Ordinary EBITDA 17,940 17,905 -% D&A (6,656) (6,809) -2% EBIT 11,284 11,096 +2% Financial expenses1 (2,197) (2,413) -9% Results from equity investments 134 (88) n.m. EBT 9,221 8,595 +7% Income taxes (2,541) (1,960) +30% Minorities (1,483) (1,868) -21% Group
Slide 116: Net Ordinary Income up by 9%
Net Ordinary Income up by 9% driven by focus on minorities and financial charges Net Ordinary Income evolution (€bn) +9% Net income increase net of 0.2 FX impact +14% yoy 5.5 0.2 0.4 0.0 0.2 5.2 5.0 4.5 4.8 (0.6) Financial expenses reduction 4.0 thanks to lower cost of debt 3.5 3.0 Minorities decrea
Slide 117: Cash flow (€bn)
Cash flow (€bn)1 20.0 18.0 16.0 17.9 ( 2.1 ) 14.0 ( 0.4 ) ( 0.4 ) 12.0 (1.6) 10.0 ( 2.0 ) 11.5 ( 10.2 ) 8.0 6.0 4.0 2.0 1.3 - Ordinary ∆ Provisions 2 Provision ∆Working Income Financial FFO Capex FCF EBITDA reversal in capital taxes expenses 3 Spain & other PY 17.9 (1.8) (0.0) (1.8) (2.7) 11.6 (10.0
Slide 118: Debt (€bn)
Debt (€bn) Net debt evolution Gross debt 50 -4% 48 1.0 0.5 45.2 4.7 61.5 46 59.0 Hybrids 44 2.4 (2.3 45.4) 45.4 60 42 9.0 6.0 Cash 50 7.3 7.6 Fin. receivables 40 (1.3) 40 Hybrids 38 30 45.4 Net debt 36 20 45.2 34 10 32 - 30 1 Dec 31, FCF Dividends APM New FX Dec 31, Dec 31, 2019 Dec 31, 2020 2019 pa
Slide 119: Liquidity position and credit metrics
Liquidity position and credit metrics Strong financial position with ample liquidity available Liquidity position and LT debt maturities (€bn) 1 Credit metrics 19 .0 2019 2020 17 .0 NET DEBT 2.5x 2.5x 2021-23 Maturities 14.9 €bn /EBITDA 15 .0 13.2 6.0 13 .0 1.9 FFO/NET 11 .0 DEBT 26% 25% 24.6 €bn 9.
Slide 120: Accelerating towards next decade goals
Accelerating towards next decade goals... Earnings at top of A solid operating People first: the range roll out supporting proactive measure confirming an long term Top quartile 2020 to protect people outstanding positioning to Total Shareholder and ensure growth in spite of capture energy Return bu
Slide 121: First Half Consolidated results
First Half Consolidated results July 29th, 2021
Slide 122: Key highlights of the period
Key highlights of the period Financial results Push on renewables Simplification Shareholder return Visible Significant translation of acceleration in Earnings 0.38 €/sh RES additions accretion guaranteed operating from Latam recovery into with +3.6 GW DPS built over the restructuring +6% vs 2020 fi
Slide 123: Solid operating recovery in Q2
Solid operating recovery in Q2 Renewables Infrastructure & Customers Networks Sharp acceleration in Volumes dynamics back Uplift in volumes drives renewables additions fueling to pre COVID-19 levels operating recovery current and future growth Additional built capacity (MW) Electricity distributed (
Slide 124: Fully sustainable capex plan, investments up 20%
Delivering on a fully sustainable capex plan, with investments up by 20% yoy Capex by business model and GBL (€bn) Ownership model +20% H1 2020 H1 2021 6% 1% Ownership model 6.0 0 Consolidated RES 42.9 46.6 capacity (GW) 4.1 4.9 5.0 0 4.6 €bn Smart meter 2.0 (mn) 14.9 21.0 0.3 47% 46% Customers free
Slide 125: Global Power Generation key highlights
Global Power Generation Capacity and production evolution2 Renewables Conventional Generation Capacity (GW) Production (TWh) Renewable capacity reached 50 GW, +2.7 GW yoy +8% yoy 56% of total capacity 11 0.0 13 0.0 118 89.5 88.9 111 Key highlights 90 .0 86.2 11 0.0 103 Phase out of coal capacity 90
Slide 126: 3,600 MW built in the last twelve months
Acceleration in renewables additions, 3,600 MW built in the last twelve months Renewable capacity evolution LTM and outlook 1 (GW) 100% Well on track to reach c. 5,800 MW in execution additions in 2021 1.3 GW built YTD, delivery in line with historical development 3.6 ~4.5 seasonality (0.1) Limited
Slide 127: Pipeline enhances visibility on 2021-23 target
Pipeline enhances visibility on 2021-23 target (and beyond) and ringfences returns Renewables Pipeline (GW) Mature pipeline by geo 2021-23 Additional 19.5 GW capacity target 33% ~40 Residual target2 6.3 GW 24% ~73 GW ~179 Pipeline 3.6x Coverage Ratio3 29% ~305 14% +29 GW vs PY ~73 ~12 Europe North A
Slide 128: Infrastructure & Networks
Infrastructure & Networks Electricity distributed1: quarterly evolution (TWh) Focus on Latam +6% +7% H1 2020 H1 2021 yoy 231 246 37.6 40.0 +6% 250.00 200.00 Q2 108 120 179 H1 2021 +11% 67 7.8 8.0 +3% 150.00 246 TWh 100.00 +5% Q1 yoy 6.7 7.0 +4% 50.00 123 126 +2% +1% 0.00 8.1 8.2 H1 2020 H1 2021 Euro
Slide 129: Retail & Enel X
Retail & Enel X Retail Enel X and new infrastructures Free market Free market H1 2020 H1 2021 power customers (mn) energy sold (TWh)1 +2x Charging points2 (k) 106 232 +1.1mn +10% +39% Fiber deployment 8.7 12.1 19 100 90.1 90 81.8 (Households passed mn) 19 80 18.4 70 +11% 18 60 +21% 18 50 62.3 69.4 S
Slide 130: Acceleration of simplification process in Latam
Acceleration of simplification process in Latam EGP AMERICAS’ ENEL COLOMBIA’S MERGER CREATION April 1, 2021 July 27, 2021 82.3% stake in Enel Américas Merger between Emgesa, after EGP Américas Codensa, EGP Colombia merger and PTO and ESSA 2 EGM approved the creation of 15.2 GW Enel Américas Enel Col
Slide 131: H1 2021 Financial results
HT 2021 Financial results ny Cl
Slide 132: Financial highlights (€mn)
Financial highlights (€mn) EBITDA1 Net Income1 FFO Operating performance Up by 10% net of FX, Recovering from stabilization supports liability management and COVID-19 impact recovery in economic result non-recurring items +10% -5% -4% net of FX, liability mgmt. and non-recurring +31% 8800 2700 3000.
Slide 133: Solid recovery in operating performance
Solid and visible recovery in the operating performance bodes well for full year target EBITDA by business line 8.79 (0.27) (0.33) 0.17 8.36 0.37 Q2 Evolution (€bn) (0.10) (0.12) 4.05 4.20 3.2 3.5 H1 2021 8.4 €bn1 Q1 Evolution (€bn) (0.17) (0.21) (0.20) 0.1 1.6 4.74 4.16 EBITDA H1 FX Non recurring O
Slide 134: Global Power Generation
Global Power Generation Visible recovery in Q2 driven by new renewable additions EBITDA evolution (€mn) EBITDA by geography EGP Conventional Generation & Trading 5,000 -6% 4,500 c.250 €mn from new 9% 3,369 3,159 capacity installed 4,000 33% 3,500 21% H1 2021 Normalization of trading activities 3.2 €
Slide 135: Infrastructure and Networks
Infrastructure and Networks Performance up by 2% yoy net of Latam FX and non-recurring items in Europe EBITDA evolution (€mn) EBITDA by geography 5,000.0 0 -9% Latam: 5% increase in volumes 4,500.0 0 20% 26% 3,849 3,488 and tariff indexation 4,000.0 0 Latam3,500.0 0 781 H1 2021 718 110 €mn negative
Slide 136: Retail
Retail Up by single digit yoy, back to pre COVID levels EBITDA evolution (€mn) Free market – Energy sold (TWh)1 +10% +3% 30.3 33.3 Improved performance led by free market in Italy 8.4 8.7 +4% 1,591 1,645 Italy 21.9 24.5 +11% -30% 222 Regulated 318 Uplift in volumes in the free market markets H1 2020
Slide 137: Net Income up by 10% net of FX and non-recurring items
Net Income up by 10% net of FX and non-recurring items Net Ordinary Income evolution (€bn) 2.6 -4% 200 €mn negative impact on financial expenses from liability managment 0.1 2.4 2.4 0.1 2.2 0.2 2.3 (0.09) Around 120 €mn negative contribution from non-recurring on taxes 2.0 1.8 (0.43) 1.6 Average cos
Slide 138: Cash flow (€bn)
Cash flow (€bn)1 10.0 8.0 8.4 6.0 ( 0.7 ) 4.0 ( 2.7 ) ( 1.2 ) ( 1.1 ) 2.0 2.7 - -2.0 (2.2) -4.0 -6.0 (4.9) Ordinary ∆ Provisions 3 ∆Working Income Financial FFO Capex FCF EBITDA capital taxes expenses 4 & other PY 8.42 (1.0) (3.5) (0.9) (1.0) 2.1 (4.1) (2.1) Delta YoY +32% +22% -30% -9% +31% +18% -5
Slide 139: Debt evolution
Debt evolution Net debt evolution (€bn) Gross debt (€bn) 60 55 +5% 0.3 0.9 50 2.4 1.4 59.0 62.1 45.4 50.4 2.2 60 4.8 Cash 2.2 45 Hybrids 6.0 6.9 Fin. receivables 40 50 7.6 40 30 35 50.4 Net debt 20 45.4 30 10 25 - 1 Dec 31, FCF Dividends APM New FX June 30, Dec 31, 2020 June 30, 2021 2020 paid Leasi
Slide 140: Increasing share of sustainable finance
Increasing the share of sustainable finance while further reducing cost of debt Share of sustainable finance Liability management program after liability management Savings on financial expenses around 100 €mn per year from 2022. Liability Crystallising the current low rate curve New issues manageme
Slide 141: Closing remarks
Closing remarks Solid Focus on Full speed on DPS + EPS operating ongoing renewables growth recovery and simplification development underpins a delivery in Latam to backed by support the unlock value growing 2021TSR >10% achievement pipeline of FY targets 141
Slide 142: Annexes
2021-2023 Annexes
Slide 143: Agenda
Agenda Macro scenario Global Power Generation Infrastructure & Networks Financial annexes Retail Enel Group Targets sensitivity 2021 – 2023 Sustainability Plan ESG annexes Focus on Corporate Governance Contact us
Slide 144: Financial annexes
2021-2023 Financial annexes
Slide 145: Macro scenario
2021-2023 Macro scenario
Slide 146: GDP, CPI, FX
GDP, CPI, FX GDP (%) CPI (%) FX against €1 2021 2022 2023 2021 2022 2023 2021 2022 2023 Italy 5.1 2.8 1.4 1.0 1.0 1.2 n. m. n. m. n. m. Iberia 7.7 3.9 1.9 1.1 1.3 1.4 n. m. n. m. n. m. Latin Am erica A rgentina 4.0 2.3 2.0 34.6 24.8 18.1 109.5 120.4 131.1 B razil 4.8 2.5 2.4 2.2 3.2 3.5 4.8 4.6 4.6
Slide 147: Commodities' prices
Commodities’ prices 2021 2022 2023 Gas TTF (€/MWh) 14.0 15.5 17.0 Gas Henry Hub ($/m m btu) 2.4 2.6 2.7 Gas PSV (€/MWh) 15.8 17.2 18.6 Oil Brent ($/bbl) 48.0 55.0 59.0 Coal API2 ($/ton) 57.0 61.0 63.0 CO2 (€/ton) 30.0 31.0 32.0 147
Slide 148: Global Power Generation
2021-2023 Global Power Generation
Slide 149: Consolidated capacity & production
Global Power Generation Consolidated capacity & production1 By technology2 By geography3 18% 17% 8%1% 11%1% 5% 13% 8% 1% 14% 14% 31% 26% 9% Capacity Capacity 15% 2020 20234 1% 2020 20234 4% 84 GW 10% 1% >90 GW 84 GW >90 GW 26% 4% 20% 29% 30% 24% 33% 26% 3% 21% 15% 8%1% 13%1% 16% 8% 21% 3% 9% 11% 1%
Slide 150: RES additional capacity
Global Power Generation RES additional capacity1 (MW) Hydro Wind Geothermal Solar & Other Total 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 Italy 19 - - 129 - 360 6 15 - 17 532 445 171 548 805 Iberia 4 6 - 34 396 450 - - - 705 1,024 1,250 743 1,426 1,700 Latin America
Slide 151: COD 2021-2023 pipeline
Global Power Generation COD 2021-2023 pipeline1 (GW) By geography By technology COD COD 2021 2022 2023 Total 2021 2022 2023 Total Italy 0.0 0.4 1.7 2.1 Iberia 0.0 0.0 2.6 2.6 Wind 0.0 0.7 5.5 6.2 Latin America 0.0 0.0 5.0 5.0 Solar & Other 0.0 1.7 14.8 16.5 Rest of Europe 0.0 0.1 1.4 1.5 Hydro 0.0 0
Slide 152: Infrastructure & Networks
2021-2023 Infrastructure & Networks
Slide 153: Electricity distributed, End users, Smart meters
Infrastructure & Networks Electricity distributed, End users, Smart meters1 Electricity distributed (TWh) End users (mn) Smart meters (mn) 485 512 74 77 44 49 10 0 60 90 16 1 52 0 50 15 80 3 1 3.5 145 3 131 42 0 70 40 30 12 13 28 60 32 0 131 50 30 125 12 13 40 22 0 20 30 31 32 214 219 12 0 20 10 31
Slide 154: Networks regulation: high visibility across the business plan
Infrastructure & Networks Networks regulation: high visibility across the full business plan South America Europe 2020 2021 2022 2023 2024 WACC 2020 2021 2022 2023 2024 WACC Italy 5.9% Brazil3 12.3% 5.6% Colombia 11.64% Iberia1 Chile 7.5% Romania2 6.4% Argentina 12.46% 2021-23 BP Peru1 12% 2021-23 B
Slide 155: Current regulatory framework in Europe
Infrastructure & Networks Current regulatory framework in Europe1 Italy Iberia Romania WACC real pre tax 6.4%4 5.9% 5.6%2 2020 Next Regulatory 20243 2026 2024 Period Regulatory Period 4+4 6 5 Length (years) Metering Owned by Owned by Owned by Ownership DSO DSO DSO Smart meter Yes No Yes inclusion in
Slide 156: Current regulatory framework in Latin America
Infrastructure & Networks Current regulatory framework in Latin America1 Argentina Brazil Chile Colombia Peru WACC real pre tax 7.5%2 12.46% 12.3% 11.64% 12.0% 2,6 2020 Next Regulatory 2022 2023 Nov 2020 2024 2022 Period Regulatory Period 5 (Rio, Goias) 5 4 5 4 Length (years) 4 (Ceará, São Paulo) Me
Slide 157: Retail
2021-2023 Retail
Slide 158: Power & gas customers and volumes
Customers Power & gas customers and volumes1 Power Gas Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc) 2020 2023 2020 2023 2020 2023 2020 2023 Italy 22.6 18.7 90.2 94.9 4.1 4.5 4.4 4.2 Free Market 9.5 18.7 59.9 94.9 4.1 4.5 4.4 4.2 Regulated 13.1 - 30.3 - - - - - 2 Iberia 10.4 10.6 80.8 9
Slide 159: Italian and Spanish power market
Customers Italian and Spanish power market Italy Spain Customers (mn) Enel Customers (mn) Enel Regulated Free Total Market Share % 2 Regulated Free Total Market Share % 3 Business 2.2 5.0 7.2 37% Business - 0.9 0.9 23% Residential 13.0 16.7 29.7 46% Residential 10.9 17.7 28.7 29% Total 15.2 21.7 36.
Slide 160: Enel Group
2021-2023 Enel Group
Slide 161: Gross Capex (€bn)
Gross Capex1 (€bn) Cumulated gross capex by GBL2 Cumulated gross capex by geography3 3% 10% 42% Networks 8% Italy 4% Retail 36% Iberia 7% ~39.0 €bn Conventional generation ~39.0 €bn Latin America Enel X 26% Rest of Europe EGP North America 44% 20% Africa, Asia & Oceania Global Power Generation Conve
Slide 162: Asset development capex (€bn)
Asset development capex1 (€bn) Cumulated development capex by GBL2 Cumulated development by geography3 2% 33% 13% Networks Italy 5% 35% Retail 10% Iberia ~26.4 €bn Conventional generation ~26.4 €bn Latin America Enel X Rest of Europe EGP 22% North America 60% 20% Africa, Asia & Oceania Global Power
Slide 163: Group Ordinary EBITDA
Group Ordinary EBITDA1 By GBL2 By geography3 (€bn) (€bn) 17.9 20.7 - 21.3 17.9 20.7 - 21.3 1% 6% 3% 3% 4% 44% 33% 43% 23% 18% 24% 19% 18% 6% 12% 3% 1% 45% 38% 26% 30% 2020 2023 2020 2023 Networks Enel X Italy Latin America North America Retail EGP Iberia Rest of Europe Africa, Asia & Oceania Convent
Slide 164: Global Power Generation Ordinary EBITDA
Global Power Generation Global Power Generation Ordinary EBITDA1 Ordinary EBITDA EGP - By geography2 (€bn) 1% 1% 16% 18% 20% 29% 9 3% 2020 5% 2023 6.9 7.7 8 4.7 €bn 6.5 €bn 12% 7 1.2 9% 42% 44% 2.2 6 5 4 Conventional Generation and Trading - By geography2 3 6.5 4.7 5% 8% 2 15% 22% 25% 1 2020 31% 202
Slide 165: Infrastructure & Networks Ordinary EBITDA
Infrastructure & Networks Infrastructure & Networks Ordinary EBITDA1 Ordinary EBITDA EBITDA by geography2 (€bn) 12 000 2% 2% 10 000 21% 9.5 36% 42% 80 00 2020 2023 50% 60 00 7.7 7.7 €bn 9.5 €bn 40 00 27% 20 00 20% 0 2020 2023 Italy Latin America Iberia Rest of Europe 1. Rounded figures 165 2. Other
Slide 166: Customers Ordinary EBITDA
Customers Customers Ordinary EBITDA1 Ordinary EBITDA Retail - By geography2 (€bn) 6%3% 11% 3% 17% 2020 2023 4.5 23% 3.2 €bn 4.0 €bn 5 4.5 0.5 63% 4 3.4 74% 3.5 3 0.2 2.5 Enel X - By geography2 2 4.0 3.2 5% 7%6% 1.5 1 22% 0.5 8% 32% 0 2020 2023 47% 0.2 €bn 0.5 €bn 2020 2023 25% 33% 14% Retail Enel X
Slide 167: EBITDA by GBL (€bn)
EBITDA by GBL (€bn)1 Italy Iberia Rest of Europe 8.2 ~8.2 4.4 ~4.2 0.5 ~0.7 23% 48% 49% 48% 47% 14% 27% 14% 12% 14% 5% 29% 30% 23% 23% 6% 4% 29% 11% 2% 44% 1% 2% 32% 17% 16% 1% 18% 10% 2020 2023 2020 2023 2020 2023 Networks Conventional generation EGP Retail Enel X 1. Rounded figures 167 2. Other is
Slide 168: EBITDA by GBL (€bn)
EBITDA by GBL (€bn)1 Latam North America Africa, Asia & Oceania 4.1 ~7.1 0.8 ~1.2 0.1 ~0.1 47% 2% 32% 2% 41% 6% 5% 98% 5% 2% 2% 8% 100% 68% 98% 39% 45% 2020 2023 2020 2023 2020 2023 Networks Conventional generation EGP Retail Enel X 1. Rounded figures 168 2. Other is not included in the breakdown
Slide 169: Baseload power price & production sold forward
Baseload power price & production sold forward Baseload price 2021 2022 2023 Italy (€/MWh) 52.3 53.9 55.3 Iberia (€/MWh) 47.2 48.4 49.2 Production sold forward 2021 2022 2023 price % price % price % 1 51.9 92% 60.7 99% 65.0 20% Italy (€/MWh) Iberia (€/MWh)1 70.7 100% 73.8 74% ~74 ~20% Brazil (USD/MW
Slide 170: Targets sensitivity
2021-2023 Targets sensitivity
Slide 171: Risks and opportunities: commodities and volumes
Risks and opportunities: commodities and volumes Cum. 2021-23 EBITDA impact (%) Mitigation factors 1 COMMODITY 0.8 Increasing renewable production +10% 0.6 0.4 0.9 0.2 across commodities 0 -0.2 -10% -0.4 -0.6 -0.8 -0.8 -1 Forward hedging strategy 0.8 Long customer position and forward sales +1% 0.6
Slide 172: Risks and opportunities: currencies
Risks and opportunities: currencies 2021-23 EBITDA & Net Income impact (+/-10% USD/LOC FX1) (€bn) Net 2021-23 Cumulated Ebitda Income EBITDA by currency BRL 0.9 0.3 2021-23 Cum. +10% 2 EBITDA impact ARS 0.1 0.0 11% 1.5 1.9 1 CLP 0.2 - 3.2% (2.5%) 0.5 0.5 60 €bn 0 cum 21-23 Other 0.7 0.1 64% 25% 0 Cu
Slide 173: Environmental, Social and Governance annexes
2021-2023 Environmental, Social and Governance annexes
Slide 174: Sustainability Plan
2021-2023 Sustainability Plan
Slide 175: Sustainable business model, driving change through growth accelerators
Sustainable business model, driving change through growth accelerators 2021 – 2023 Sustainability Plan 1 1. Growth accelerators include innovation, digital supports, circular economy and sustainable finance
Slide 176: People we work with
People we work with Plan actions 2020E1 2021-23 targets Gender - % of women in selection 44% women involved in 50% women involved in processes1 recruiting processes recruiting processes • 100% of people involved • 100% of people involved Climate survey2 • 86% of people participating • 87% of people
Slide 177: Local and global communities
Local and global communities Plan actions 2020E1 2030 targets2 High-quality, inclusive and fair education ~ 2.1 mn beneficiaries 5.0 mn beneficiaries in 20302 Access to affordable and clean energy ~ 9.6 mn beneficiaries 20.0 mn beneficiaries in 20302 Employment and sustainable 8.0 mn beneficiaries i
Slide 178: Environmental sustainability
Environmental sustainability Plan actions 2020E 2030 targets -54% vs 2017 Reduction of specific Nox emissions1 -70% in 2030 (vs 2017) (0,36 g/kWheq) -87% vs 2017 Reduction of specific SO2 emissions1 -90% in 2030 (vs 2017) (0,11 g/kWheq) -95% vs 2017 Reduction of specific dust emissions1 -97% in 2030
Slide 179: Innovation
Innovation 2020E Plan actions 2021-23 targets New geographies opened for scouting 2 in addition to active Innovation hubs 10 • Enhance the reach of our Launch of 350 Proof of New lab 1 innovation ecosystem to Concept to test innovative to a total of labs 22 find the best solutions solutions worldwid
Slide 180: Cyber security
Cyber security 2020E Plan actions 2021-23 targets Risky emails blocked (#) 1.8M every day Execution of 36 cyberexercises Cyberexercises involving industrial cyberexercises involving executed on industrial plants/sites (#) 14 industrial plants/sites plants/sites Internet domain detected for suspect i
Slide 181: Focus on Corporate Governance
Focus on Corporate Governance
Slide 182: Corporate governance structure
Corporate governance structure 89% Shareholders’ meeting Audit firm BoD’s composition 11% Board of Statutory Board of Directors Auditors (3 members) Independent Executive (9 members1) Nomination and Control and Risk Related Parties Committee Corporate Governance and Compensation Committee Committee
Slide 183: Board nomination and election
Board nomination and election BoD’s ✓ Enel’s Board of Directors consists of three to nine members who are appointed by the Members ordinary shareholders’ meeting for a term of up to three financial years ✓ The appointment of the entire Board of Directors takes place according to a slate voting syste
Slide 184: Board composition
Board composition Board of Directors Board of Directors’s diversity Chair 33% Michele Crisostomo (C) Corp. Governance & Sust. C. 44% CEO and Age Gender Francesco Starace diversity 22% diversity General Manager 45% 56% (C) Control & Risk C. Cesare Calari Nomination & Compensation C. 49-53 54-57 58-67
Slide 185: CEO remuneration: Overall structure
CEO remuneration Overall structure ✓ Market Cap: between the third quartile and the ninth decile 2 Enel position vs ✓ Revenues: between the third quartile and the ninth decile2 the Peer Group1 ✓ Employees: between the median and third quartile2 Compensation at target level Compensation at maximum le
Slide 186: CEO's short-term variable remuneration
CEO’s short-term variable remuneration1 Macro objective Objective Type of target Weight2 Entry (50%) Target (100%) Over (150%) Ordinary consolidated Profitability 35% 5.41 €bn 5.46 €bn 5.57 €bn Economic net income Efficiency Group Opex 20% 7.97 €bn 7.89 €bn 7.81 €bn Economic Cash and debt FFO/Consol
Slide 187: Long-term variable remuneration
Long-term variable remuneration1 100% of the base amount is assigned in Enel shares 2 Macro Objective Type of target objective Weight3 Target (130%)4 Over I (150%) Over II (280%)4 Enel’s TSR Enel’s TSR Enel’s TSR Performance TSR5 50% = 100% of = 110% of ≥ 115% of Market Index’s TSR Index’s TSR Index
Slide 188: CEO remuneration: Termination agreements
CEO remuneration Termination agreements ✓ In case of misalignment between the performance period of the 2021 LTI plan and the Pro rata term of office of CEO/GM, due to the expiry of its mandate without renewal, a “pro rata temporis rule temporis” rule for compensation was confirmed1 ✓ It was confirm
Slide 189: Enel Group's listed companies
Enel Group’s listed companies (as of April 30, 2021) 70.1% 64.9% 82.3% 56.4% Chile Américas1 Russia 93.5% 99.1% 99.1% 99.9% 100% 100% Enel Gx Chile Enel Dx Chile Enel Tx Chile Enel Argentina Enel Brasil Enel Perú 96.5% 92.6% 75.7% Enel Gx Piura 83.2% 83.6% Pehuenche Enel Gx Costanera Enel Dx Perú En
Slide 190: 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 191: Investor Relations team
Investor Relations team Contact us Contacts Email investor.relations@enel.com Phone +39 06 8305 7975 Investor Relations App Monica Girardi iOS Android Head of Group Investor Relations Investor Relations team Federico Baroncelli Serena Carioti Federica Dori Matteo Marengon Federica Pozzi Channels Fab