Slide 1: Full Year 2019 Consolidated results
Full Year 2019 Consolidated results March,19 2020
Slide 2: COVID-19: Business continuity management and risks assessment
COVID-19 Business continuity management and risks assessment Francesco Starace CEO
Slide 3: COVID-19 Business continuity management: our people
COVID-19 Business continuity management: our people Remote working trends % of employees on remote working Remote working: c.35,300 total number of people +13x 1 0 0 52% 14,700 6,300 RoW: 14,300 0 0 4% - Pre COVID19 Post COVID19 Crisis management: Global Task Force set up in February 2020, outbreak
Slide 4: COVID-19 Business continuity management: our assets
COVID-19 Business continuity management: our assets ✓ 100% remote operational management of ✓ Complete remote management of all the renewable assets, 100% remote monitoring of activities, including call centers conventional generation ✓ Customer interactions through digital channels ✓ Optimization o
Slide 5: Risk assessment: strategic deployment not affected, resilient business set up
COVID-19 Risk assessment: strategic deployment not affected, resilient business set up Macroeconomic Risks Business Risks Financial Risks GDP & Commodities: Prices: 2020 production sold Strong coverage and forward: Latin America leverage ratios set to ✓ 80% contracted and 100%, Europe >80% improve o
Slide 6: Full Year 2019 Consolidated results
Full Year 2019 Consolidated results Francesco Starace CEO
Slide 7: Key highlights of the year
Key highlights of the year Strong financial Push on Grid Free market Rating results decarbonisation digitalisation growth improvements +11% +3 GW Fitch A- EBITDA Renewables +5.9 mn +1.2 mn Moody’s Baa2/+ Smart +17% - 4.1 GW Customers MSCI AAA meters 2.0 CDP A Net Income Coal 6
Slide 8: Delivering on a fully sustainable capex plan
Delivering on a fully sustainable capex plan Capex increased by 17% yoy Capex by business and by nature Capex asset development by business 2% 5%3%2% 18% 2% 8% 28% 39% FY 2019 FY 2019 FY 2019 10 €bn 23% 10 €bn 59% 5.9 €bn 43% 68% Networks Enel X Asset development Networks Enel X Retail EGP Customers
Slide 9: Decarbonisation: Global Power Generation
Decarbonisation Global Power Generation A single business line to enhance opportunities of the energy transition Installed capacity and production evolution in 20191 (GW) Emission free share of production2 110 .0 51% emission free 57% emission free 235 86.5 84.7 213 90. 0 70. 0 127 43.1 - 4.2 GW 38.
Slide 10: Renewables capacity evolution
Decarbonisation Renewables capacity evolution Continued delivery on renewable growth with more than 3,000 MW built Renewable capacity evolution 2019 (GW) Total capacity 43.4 3.0 0.7 (1.3) 45.8 Capacity delivery: set new record with more than 3,000 MW built 0.1 - Managed (0.7) c. 2,400 MW added only
Slide 11: High level visibility on deployment goals 20-22
Decarbonisation High level visibility on deployment goals 2020-22 Renewables growth1: addressed share vs pipeline2 (GW) 2020 ~100% 35.9 GW 35.9 GW Pipeline 30. 0 Coverage ~~6.8x 7.4x by year 2021 63% Residual target 25. 0 2022 35% 16.2 Beyond 2022 20. 0 15. 0 62% addressed 14.1 19.7 2020-22 pipeline
Slide 12: Focus on coal phase out
Decarbonisation Focus on coal phase out Acceleration of decarbonisation with coal capacity down by 4.1 GW Coal production (TWh) Coal capacity (GW) Coal production on total1 Coal capacity on total1 Coal production almost halved in 2019 -42% -26% 4.1 GW of coal capacity (4 power 16.0 0 60. 00 64.4 15.
Slide 13: Retail: Progressive shift towards more profitable free markets
Electrification Retail Progressive shift towards more profitable free markets Free markets Total power customers (mn) (mn) +1.2 Free market customers up by 1.2 mn driven by Italy 16.0 17.2 65.4 64.1 60. 00 16.0 17.2 End of Italian regulated tariff: 2.2 1.7 50. 00 2021 for SME, 2022 for retail 40. 00
Slide 14: Networks: grid digitalisation with meters 2.0
Enabling Infrastructure Networks Continued effort on grid digitalisation with meters 2.0 almost doubled Electricity distributed (TWh) Smart meter 2.0 (mn)1 +5.9 mn smart meters 2.0 installed +4% +82% 14.0 0 500 .00 504 12.0 0 13.1 450 .00 484 10.0 0 ~30% smart meters 2.0 on total 8.00 400 .00 6.00 7
Slide 15: Enel X: ramp up of value added services
Ecosystems and Platforms Enel X Development ramp up of our value added services New energy services Infrastructure deployment Demand Response (GW) Storage (MW) +2% +57% FY 2018 FY 2019 +63% Charging points1 (k) 49 80 6 120 6 6.3 110 100 6 6.2 6 80 Public lighting -4% 6 (mn points) 2.5 2.4 70 60 6 40
Slide 16: Shareholder remuneration
Shareholder remuneration EPS (€/sh) DPS (€/sh) +33% +32% +18% +17% 0.40 0.35 0.53 0.30 0.37 0.47 0.25 0.328 0.40 0.20 0.28 0.15 0.10 0.05 0.00 2018 2019 2020 2018 2019 2020 Min. guaranteed DPS 0.28 0.32 0.35 15
Slide 17: Full Year 2019 Financial results
Full Year 2019 Financial results Alberto De Paoli CFO
Slide 18: Financial highlights
Financial highlights (€mn) EBITDA1 Net Income1 FFO Net Debt ✔ ✔ ✔ ✔ 17,905 4,767 11,630 45,175 +11% +17% +5% +10% FY 2018 16,158 4,060 11,075 41,0892 1. Ordinary figures 17 2. As of December 31st 2018. IFRS 16 impact from January 1st, 2019
Slide 19: Ordinary EBITDA evolution
Ordinary EBITDA evolution1 Performance supported by our sustainable and integrated business model EBITDA evolution (€bn) Ordinary EBITDA by GBL +11% 1% 20.00 18% 0.0 0.1 0.8 46% 0.2 17.9 €bn 0.1 0.5 17.9 9% (11% yoy) 15.00 16.2 26% 0.6 0.9 10.00 EBITDA 2018E EGP Conventional Retail Networks Enel X S
Slide 20: Operational efficiency
Operational efficiency Efficiencies reached 300€mn in 2019 OPEX evolution (€mn) OPEX evolution (€mn) 8,9 00.0 -1% 186 8,7 00.0 22% 140 8,5 00.0 8,590 (194) 8,582 97 8,506 FY 2019 47% 0.3 €bn 8,3 00.0 (313) 8,1 00.0 31% 7,9 00.0 7,7 00.0 FY 2018 Perimeter IFRS 16 FY 2018 Efficiency CPI & FX Develop.
Slide 21: Enel Green Power
Decarbonisation Enel Green Power Robust sustained growth EBITDA evolution (€mn) EBITDA FY 2019 by geography +2% 4,80 0.00 2% 4,70 0.00 Higher prices more than offset 4,60 0.00 lower volumes 27% 4,634 48% FY 2019 4,543 4,50 0.00 4,40 0.00 Impact from large Q4 investments 4.6 €bn 4,30 0.00 not yet vis
Slide 22: Conventional generation and Global trading
Decarbonisation Conventional generation and Global trading Performance driven by higher nuclear prices and continued efficiencies EBITDA evolution (€mn) EBITDA FY 2019 by geography 2,00 0.00 +45% 11% 6% 1,80 0.00 1,60 0.00 Higher nuclear prices and volumes 1,40 0.00 1,616 FY 2019 1.6 €bn 1,20 0.00 4
Slide 23: Infrastructure and Networks
Enabling Infrastructure Infrastructure and Networks EBITDA growth driven by Enel DX Sao Paulo and efficiencies EBITDA evolution (€mn) EBITDA FY 2019 by geography 11,0 00.00 +11% 10,0 00.00 1% Enel DX Sao Paulo consolidation 25% and outstanding performance 9,00 0.00 8,00 0.00 8,228 FY 2019 47% 8.2 €b
Slide 24: Retail: Performance propelled by free market
Electrification Retail Performance propelled by free market EBITDA evolution (€mn) Energy sold1 (TWh) +7% +3% Higher margins in Iberia and Latin 3,079 3,287 America 400 .00 350 .00 327 336 599 546 300 .00 c.9% cost to serve reduction 172 250 .00 163 mainly in Italy 200 .00 150 .00 2,533 2,688 100 .0
Slide 25: Profit & loss
Profit & loss (€mn) FY 2019 FY 2018 ∆ yoy Ordinary EBITDA 17,905 16,158 +11% Higher D&A mainly due to IFRS16, consolidation of Enel DX Sao Paulo and higher investments D&A (6,809) (6,365) +7% EBIT 11,096 9,793 +13% Lower cost of debt by around 40bps Financial expenses1 (2,413) (2,370) +2% Results fr
Slide 26: Cash flow
Cash flow (€bn) Solid FFO generation supports increasing capex 12.0 17.9 (1.8) (0.0) 10.0 8.0 (1.8) 6.0 (2.7) 4.0 11.6 (10.0) 2.0 - 1.7 1 3 Ordinary ∆ Provisions ∆Working Income Financial FFO Capex FCF EBITDA capital taxes expenses 2 & other PY 16.2 (1.9) 1.1 (1.7) (2.6) 11.1 (8.5)4 2.5 Delta YoY +1
Slide 27: Debt
Debt (€bn) Cost of debt declined by 40 bps, Net Debt impacted by FX and IFRS16 Gross debt Net debt evolution 50 +7% 48 46 4.0 1.1 61.5 57.4 44 42.5 45.2 60 9.0 (0.6) 6.7 42 1.4 50 7.3 IFRS 16 8.2 40 IFRS 16 40 1.4 (1.7) 38 30 41.1 36 20 41.1 45.2 34 10 32 30 - 1 2 Jan 1, 2019 Dec 31 2019 Jan 1, 2019
Slide 28: Closing remarks
Closing remarks More than 50% of NO evidence of Ample liquidity 2019 strong our people significant available and financial results as working remotely impacts thanks to strong balance a consequence of a a resilient and sheet to face strong operational No disruptions on diversified volatile scenarios
Slide 29: Annexes
Full Year 2019 Consolidated results Annexes
Slide 30: Macroscenario
FY 2019 consolidated results Macroscenario GDP (%) CPI (%) FX against €1 Spot Price (€/MWh) Electricity Dem and (TWh) 2 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Italy 0.19 0.65 0.61 1.14 - - 52.31 61.28 319.60 321.43 Iberia 1.95 2.35 0.70 1.67 - - 47.49 57.29 2
Slide 31: Group total net installed capacity
FY 2019 consolidated results Group total net installed capacity1: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 12,406 772 766 28 - 2,739 6,206 4,535 27,452 Iberia 4,748 2,291 - 353 3,318 2,334 4,825 5,480 23,348 Latin America 10,57
Slide 32: Group total net production
FY 2019 consolidated results Group total net production1: breakdown by technology and geography Solar & GWh Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 17,246 1,357 5,669 36 - 256 12,757 9,591 46,912 Iberia 5,861 4,127 - 102 26,279 5,703 7,643 11,687 61,402 Latin America 39,191
Slide 33: Group total additional capacity
FY 2019 consolidated results Group total additional capacity1: breakdown by technology and geography Solar & MW Hydro Wind Geothermal Nuke Oil & Gas Coal CCGT TOTAL Other Italy 18 - 3 - - - - - 21 Iberia 29 541 - 339 - - - - 909 Latin America 4 29 - 314 - - - - 347 Argentina - - - - - - - - - Brazil
Slide 34: Renewable projects in execution
FY 2019 consolidated results Renewable projects in execution: breakdown by technology and geography1 MW Wind Hydro Geothermal Solar Biomass Total Italy - 53 7 - - 60 Iberia 108 7 - 149 - 264 Latin America 1,771 154 28 1,101 - 3,054 Rest of Europe 291 - - - - 291 North America 978 - - 210 - 1,187 Afr
Slide 35: EGP gross pipeline
FY 2019 consolidated results EGP gross pipeline1 Pipeline by technology Pipeline by geography Pipeline by COD 1% 16% 7% 13% 13% 4% 46% 45% 35.9 GW 35.9 GW 35.9 GW 53% 22% 42% 38% Wind Italy North America 2021 Solar Iberia Rest of Europe 2022 Hydro & Others Latin America Africa, Asia & Oceania >2022
Slide 36: Infrastructure & Networks KPIs
FY 2019 consolidated results Infrastructure & Networks KPIs Electricity distributed (TWh) End users (m n) Sm art m eters (m n) FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Italy 224.6 226.5 31.5 31.4 31.4 31.4 Iberia 126.5 124.9 12.2 12.2 12.2 11.6 Latin Am erica 137.3 117.4 26.7 26.5 0.4 0.4 A r
Slide 37: Retail KPIs
FY 2019 consolidated results Retail KPIs Power Gas 1 Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc) FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Italy 23.7 25.2 97.5 104.3 4.2 4.1 4.7 4.8 Iberia 10.6 10.8 89.4 89.6 1.6 1.6 5.7 6.4 Latin America 26.7 26.5 105.0 91.1 0.0
Slide 38: Italian power market
FY 2019 consolidated results Italian power market Customers (mn) Energy sold (TWh) Enel Enel Enel Enel market share1 market share2 market share1 market share2 40% 36.8 18.5 239.3 286.2 4.5 7.2 53% 24% 18.3 14.0 205.3 220.1 2.8 29.5 47% 15.5 46.8 34.1 14.8 66.1 32.0 Regulated 79% Free 50% Total Regul
Slide 39: Spanish power market
FY 2019 consolidated results Spanish power market Customers (mn) Energy sold (TWh) Enel Enel market share1 market share1 18.3 29.4 226.6 253.9 30% 55.3 32% 81.2 17.4 28.5 171.4 11.2 0.9 33% 172.7 31% 11.2 27.3 26.0 0.0 0.9 1.3 43% 30% Regulated 48% Free 34% Total Regulated Free Total Business Reside
Slide 40: Baseload power price & production sold forward
FY 2019 consolidated results Baseload power price & production sold forward Baseload price 2019 2020 Italy (€/MWh) 56.9 56.2 Iberia (€/MWh) 56.5 55.0 Production sold forw ard 2019 2020 2021 2022 price % price % price % price % 1 Italy (€/MWh) 54.5 100% 58.8 80% 57.8 20% - - 1 Iberia (€/MWh) 67.8 100
Slide 41: Capex
FY 2019 consolidated results Capex1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orNs & Other FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Italy 189 172 1,753 1,685 240 255 324
Slide 42: Asset development Capex
FY 2019 consolidated results Asset development Capex1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orNs & Other FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Italy 49 31 851 824
Slide 43: Asset management Capex
FY 2019 consolidated results Asset management Capex1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orNs & Other FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Italy 139 141 424 45
Slide 44: Customers Capex
FY 2019 consolidated results Customers Capex1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orNs & Other FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Italy - - 479 409 - - 324 2
Slide 45: Revenues
FY 2019 consolidated results Revenues1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orNs & Other FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Italy 23,688 18,954 7,647 7,672 1,
Slide 46: Reported EBITDA
FY 2019 consolidated results Reported EBITDA1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orNs & Other FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Italy (14) 22 3,906 3,679 1
Slide 47: Ordinary EBITDA
FY 2019 consolidated results Ordinary EBITDA1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orNs & Other FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Italy 97 22 3,856 3,551 1,2
Slide 48: Reported EBIT
FY 2019 consolidated results Reported EBIT1 (€mn) Conventional Generation & Infrastructure Services EGP Retail Enel X Total Global Trading & Netw orNs & Other FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 Italy (1,908) (248) 2,647 2,5
Slide 49: EBITDA from Reported to Adjusted: by geography
FY 2019 consolidated results EBITDA from Reported to Adjusted: breakdown by geography (€mn) North & Africa, South Rest of FY 2019 Italy Iberia Central Asia & Other Total America Europe America Oceania Reported 7,628 3,792 5,303 448 799 61 (327) 17,704 Extraordinary items (61) (103) - (37) - - - (201
Slide 50: EBITDA from Reported to Adjusted: by business line
FY 2019 consolidated results EBITDA from Reported to Adjusted: breakdown by business line (€mn) Conventional Generation & Infrastructure Services FY 2019 EGP Retail Enel X Total Global & NetworNs & Holding Trading Reported 1,395 8,278 4,604 3,287 158 (18) 17,704 Extraordinary items (221) 50 (30) - -
Slide 51: From EBITDA to net income
FY 2019 consolidated results From EBITDA to net income1 (€mn) FY 2019 FY 2018 FY 2019 FY 2018 1 ∆ yoy ∆ yoy reported reported ordinary ordinary EBITDA 17,704 16,351 8.3% 17,905 16,158 10.8% D&A (10,826) (6,451) (6,809) (6,365) EBIT 6,878 9,900 -30.5% 11,096 9,793 13.3% Net financial charges (2,444)
Slide 52: D&A reported
FY 2019 consolidated results D&A reported (€mn) 1 0 FY 2019 FY 2018 ∆ yoy Generation and Trading 4,889 1,235 296% Enel Green Pow er 1,328 1,103 20% Distribution 3,001 2,752 9% Retail 1,124 1,121 0% Enel X 256 105 144% Others and adjustm ents 228 135 69% Total 10,826 6,451 68% 51
Slide 53: Gross debt structure
FY 2019 consolidated results Gross debt1 structure Long term debt by currency After swap Interest rate composition Long term credit ratings Rating Outlook 48% 82% Standard & Poors BBB+ Stable 20% 58.5 €bn 58.5 €bn 62.4 €bn 8% 2% Moody’s Baa2 Positive 2% 80% 1% 2% 35% 6% 2% Fitch A- Stable 1% 7% 4% E
Slide 54: Debt structure by instrument
FY 2019 consolidated results Debt structure by instrument (€bn) EFA and Europe and Euro- Latin Africa, Asia Debt by instrument Enel Spa EFI Central Italy Iberia North America Mediterranean Total America and Oceania Others Affairs Bonds 8.61 30.74 - - 0.02 5.76 - 0.07 - 45.20 Bank Loans 0.55 - - 4.23
Slide 55: Debt maturity coverage split by typology
FY 2019 consolidated results Debt maturity coverage split by typology (€bn) 29.7 24.7 5.7 Available committed credit lines1 15.7 24.0 7.4 6.9 7.7 6.2 0.9 Cash 4.0 3.6 1.5 1.0 9.0 Short Term 1.5 1.7 5.9 6.8 Bank Loans and Others 4.7 Bonds 1.9 1.9 FY 2019 2020 2021 2022 2023 2024 After 2024 54 1. Of w
Slide 56: Balance sheet
FY 2019 consolidated results Balance sheet (€mn) FY 2019 FY 2018 Δyoy Net financial debt 45,175 41,089 9.9% Shareholders' equity 46,938 47,852 -1.9% Net capital employed 92,113 88,940 3.6% 55
Slide 57: Balance sheet structure
FY 2019 consolidated results Balance sheet structure (€bn) Net fixed assets 109.9 9.3 1.7 0.1 (8.4) 98.9 (9.5) 92.1 46.9 45.2 Assets WIP (tangible Equity NWC Provisions Assets held Net capital Equity Net Debt & intangible) Investment for sale employed Net debt / Net capital employed 49% 56
Slide 58: Headcount
FY 2019 consolidated results Headcount 1 0 FY 2019 FY 2018 ∆ yoy Generation and Trading 9,432 10,286 -8% Enel Green Pow er 7,957 7,478 6% Distribution 34,822 35,740 -3% Retail 6,336 6,492 -2% Enel X 2,808 2,733 3% Others and adjustm ents 6,898 6,543 5% Total 68,253 69,272 -1% 57
Slide 59: Disclaimer
FY 2019 consolidated results Disclaimer This presentation contains certain forward-looking statements that reflect the Company’s management’s current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements ar
Slide 60: Contact us
Full Year 2019 consolidated results Contact us Contacts Email investor.relations@enel.com Phone +39 06 8305 7975 Monica Girardi Channels Head of Group Investor Relations Website Mobile App Investor Relations team Enel.com Enel Investors Federico Baroncelli Francisco Basauri Serena Carioti Federica D