Enel Spa · MIL:ENEL
Enel Spa — Investor Presentation (February 2018)
157 slides from Enel Spa's investor presentation, February 2018
Slide 1: Investor presentation 2018-20 strategic plan
Investor presentation 2018-20 strategic plan February 2018
Slide 2: Table of contents
Investor presentation Table of contents 2018-20 strategic plan - Sector trends and plan overview Page 2 2018-20 strategic plan - Key financials Page 24 2018-20 strategic plan annexes - Strategic deep-dive Page 33 2018-20 strategic plan annexes – Previous plan delivery Page 47 2018-20 strategic plan
Slide 3: Sector trends and plan overview
Investor presentation 2018-20 strategic plan Sector trends and plan overview
Slide 4: Sector trends (1/2)
Investor presentation Sector trends (1/2) Urbanization rate1 (%) Primary energy mix2 (‘000 Mtoe) Urbanization trend Decarbonization 13.7 14.1 90,0 0 16,0 0 80,0 0 By 2050, 6.3 bn people will live … 14,0 0 85 14% … 70,0 0 By 2040, ~40% of generation ~40% 12,0 0 in cities 60,0 0 78 10,0 0 50,0 0 63 wi
Slide 5: Sector trends (2/2)
Investor presentation Sector trends (2/2) Small scale PV and demand response Small scale PV (GW)1 Demand response (GW)1 Distributed generation and demand response will +1,279 +264 drive the increase in number of “prosumers” 1,387 319 330 ,00 1.20 1,00 280 ,00 Low cost and low-carbon technologies wil
Slide 6: Enel integrated model fit for digitalized, low carbon world
Investor presentation Enel integrated model fit for digitalized, low carbon world Digital infrastructure platform Distributed generation and quality of service Zero-emission generation growth engine Cash flow generation and global Driver of access to energy risk mitigation Key player in the mix tran
Slide 7: Integrated model fit for digitalized, low carbon world
Investor presentation Integrated model fit for digitalized, low carbon world Electrification, Storage, Decarbonization Urbanization Demand Response Enel 2020 targets Enel 2020 targets Enel 2020 targets NEW ~48 GW renewables (+7.8 GW) 600 MW storage capacity ~67 mn end-users ~36 GW thermal (-
Slide 8: Enel strategic pillars
Investor presentation Enel strategic pillars Digitalization Customer focus Operational efficiency Industrial growth Group simplification & active portfolio management Communities and people for a data-driven Company for more shared value Sustainable long-term value creation 7
Slide 9: Digitalization (1/2)
Investor presentation Digitalization (1/2) 2018-20 digitalization capex Key levers for digitalization Asset 13% 6% 5.3 €bn Customer Data People Cyber security driven Cloud 81% Platform Asset Customer People Agile Agile operating model maximizing speed and efficiency through optimal use of data 8
Slide 10: Digitalization (2/2)
Investor presentation Digitalization (2/2) 2018-20 cumulative digitalization capex 2018-20 cumulative benefits1 Gross Opex EBITDA Margin Plan 2017-19 Plan 2018-20 Asset 3.9 €bn 4.3 €bn 1.0 €bn (0.3) €bn 1.3 €bn 13% 6% 5.3 €bn Customer 0.7 €bn 0.7 €bn 0.2 €bn (0.2) €bn 0.4 €bn 81% People 0.1 €bn 0.3
Slide 11: Customer focus: global retail and e-Solutions
Investor presentation Customer focus: global retail and e-Solutions EBITDA (€bn) 6,0 Key drivers Key figures +13.9 mn power customers 5,0 +32% Growth of retail customer base worldwide +0.8 mn gas customers 4,0 3,3 3.0 Higher focus on corporate 33% increase in power volumes 2,5 0,4 0,3 3,0 customers
Slide 12: Customer focus: commodity retail
Investor presentation Customer focus: commodity retail Free customers1 (mn) Power sold in free market (TWh) Year +78% 2016 287 Total 2 Free customers growing in all countries sales 267 255 34.8 Total 35 244 production Liberalization in Italy: opportunity to 3,6 213 230 increase volumes and clients +
Slide 13: Customer focus: e-Solutions 2020 targets
Investor presentation Customer focus: e-Solutions 2020 targets e-Industries e-Mobility e-Home e-City Public infrastructure Maintenance Demand Response Smart Lighting (GW generating revenues) (Public charging and repair (Light Points) stations installed) (Customer base) ~9 k >2 mn 3 mn >10 GW >100% C
Slide 14: Operational efficiency
Investor presentation Operational efficiency Maintenance capex (€bn)1 Opex (€bn) Cash cost (€bn) 10 20 20 9 -20% 18 -3% 18 -7% 8 16 16 7 14 14 6 12 12 5 10 10 4 8 8 11,1 10,3 3 6 8,6 8,3 6 2 4 4 2,5 1 2,0 2 2 0 0 0 2017E 2020 2017E 2020 2017E 2020 Digitalization enables greater operational efficienc
Slide 15: Operational efficiency: focus on opex
Investor presentation Operational efficiency: focus on opex Opex evolution (€bn)1 Opex by business3 -16% Networks -3% €/end user 50,5 42,4 2017E 2020 0,1 Renewables -9% 0,4 0,3 (1.2) k€/MW 38,8 35,2 8,6 2017E 2020 0.5 from 8,3 -4% digitalization Thermal Generation4 37,1 35,6 k€/MW 2017E 2020 -34% Re
Slide 16: Industrial growth: 2018-20 capex plan
Investor presentation Industrial growth: 2018-20 capex plan Total gross capex (€bn) Growth capex by business line1 (€bn) Growth capex by geography1 (€bn) 24.6 14.6 14.6 25 24.1 13,8 13.8 14 0.6 0,8 14 0,7 0,7 0,5 +6% 0,8 95% 95% 12 12 3,7 20 5,3 13,8 14,6 10 10 Mature 15 8,3 1,7 markets 8 8,3 8 BS
Slide 17: Industrial growth: focus on growth capex and growth EBITDA
Investor presentation Industrial growth: focus on growth capex and growth EBITDA Growth capex by business line1 (€bn) 2018-20 cumulated growth EBITDA1 (€bn) +6% 14.6 +19% 13,7 4,0 3.6 14 0,6 0,8 +33% 0,8 0,7 3,5 3.12 12 0,8 +33% 0,6 3,0 10 < 0.1 0,1 2,5 8,3 -% 1,1 -% 8 8,3 2,0 1,1 6 BSO 3.4 BSO 3.2
Slide 18: Industrial growth: focus on growth EBITDA
Investor presentation Industrial growth: focus on growth EBITDA 2018-20 growth capex Capex addressed by business By year1 Growth EBITDA by year2 (€bn) 3 2018 70% 2,5 2.3 35% 42% 2019 45% 1.7 53% 14.6 €bn 2 6.8 €bn 1,5 1.1 3.6 56% 1.8 cumulated 2020 27% 1 1.2 12% 0.6 1% 1% 0,5 0.5 0.5 0.5 0.5 0 In ex
Slide 19: Industrial growth: operational targets by business
Investor presentation Industrial growth: operational targets by business Networks Retail Renewables Thermal generation3 End users (mn) Free customer base1 (mn) Managed capacity (GW) Installed capacity(GW) Smart meters (mn) Power sold2 (TWh) Other renewables (GW) Smart meters 2.0 (mn) Large hydro (GW
Slide 20: Industrial growth: financial targets by business
Investor presentation Industrial growth: financial targets by business Networks Customers Renewables Thermal generation2 EBITDA CAGR1 +6% EBITDA CAGR1 +10% EBITDA CAGR1 +5% EBITDA CAGR1 +2% €bn 35,0 0 10,0 0 20,0 0 8,00 €bn 30,0 0 9,00 8,00 0,8 18,0 0 16,0 0 €bn 7,00 €bn 6,00 8,2 25,0 0 7,00 14,0 0
Slide 21: Group simplification & active portfolio management
Investor presentation Group simplification & active portfolio management Simplification Minority reduction From 69 to 53 # companies in South America Romania Delivery Sale of minority stakes in Electrogas and Peru Bayan To below 30 # companies in South America Chile integration of renewable assets a
Slide 22: Group simplification & active portfolio management
Investor presentation Group simplification & active portfolio management Current structure Post reorganization structure Rationale ~ 9 – 12 months Integration of renewable energy platform of assets in Chile 100% 61% ~ 61% and < 65% EPS accretion and Enel Enel 100% EGP EGP Chile Chile Latam(1) reduci
Slide 23: Group simplification: the new plan
Investor presentation Group simplification & active portfolio management: the new plan 2017 program (€bn) 2018-20 program (€bn) 2018-20 use of funds (€bn) 4,00 6,00 ~4.7 3,50 5,00 Minority buy-out & 2.6 2.3 3,00 2,50 4,00 share buy back 0.5 ~3.2 2,00 3,00 1.5 Acquisition focused 2 on networks and
Slide 24: Communities and people
Investor presentation Communities and people Local communities (mn beneficiaries) Our people 2017E 20201 2020 Talent attraction and retention 2x High-quality, inclusive and fair 100% of people involved Appraise performance of education 0.5 0.8 From 99% of people appraised 0.4 people we work with2 95
Slide 25: Key financials
Investor Presentation 2018-20 strategic plan Key financials
Slide 26: Enel transformation and 2020 targets
Investor presentation Enel transformation and 2020 targets Profitability & cash generation Leverage Returns 0,7 90% 4,50 27% 29% 31% 0,4 14% 12,3% 13,1% 14% >65% 80% 4,00 25% 27% 0,3 10,5% 10,8% 11,1% 0,6 64% 65% >65% >65% 12% 13% 13,0% 70% 3,50 0,3 0,5 30% 10% 12% 12,3% 60% 3,00 0,2 0,4 8% 11% 50%
Slide 27: EBITDA evolution
Investor presentation EBITDA evolution 25, 0 22, 0 Ordinary EBITDA (€bn) 2017-20 ordinary EBITDA evolution (€bn) 23, 0 20, 0 +19% 21, 0 (0.2) 1,2 0,6 (0,7) 1,8 19, 0 18, 0 18,2 17, 0 18,2 17,2 15, 0 15.5 16, 0 16,2 13, 0 15,5 17.2 14, 0 16.2 11, 0 15.5 9,0 12, 0 7,0 10, 0 5,0 2017E 2018 2019 2020 20
Slide 28: EBITDA evolution by business line and country
Investor presentation EBITDA evolution1 2017-20 EBITDA evolution by business line and country (€bn) 0,3 (0.1) 0,5 0,1 0,5 1,4 18,2 15,5 2017E Global Global Thermal Global Retail e-Solutions Other 2020 Infrastructure Generation Renewable & Networks & Trading Energies 1,6 (0,1) (0,2) 0,1 0,8 0,4 18.2
Slide 29: Key financials: Group net income evolution
Investor presentation Key financials: Group net income evolution Group net ordinary income (€bn) 2017-20 group net ordinary income evolution (€bn) 7,0 6,5 9,0 +50% 8,0 5,4 6,0 0,8 (0,9) 5,5 7,0 2.7 (0,2) 0.1 (0.8) 6,0 4,8 5,0 5,0 4.7 5,4 4,1 4,5 4,0 3,6 4,0 3,6 3,0 3,5 2,0 3,0 1,0 2,5 0,0 2,0 2017E
Slide 30: Financial plan and strategy
Investor presentation Financial plan and strategy Gross and net debt (€bn) Net financial expenses on debt (€bn) -6% -12% 4,0 5.0% 3,5 4.8% 4.7% ~52,0 5,0 % ~50.8 ~50,8 ~49,1 4.5% 3,0 4,5% ~7,4 ~5,0 ~5,4 ~5,2 4,5 % ~6,8 ~6,0 ~5,9 ~5,6 2,5 2,0 2.4 2,3 4,0 % 1,5 2,2 2,1 3,5 % ~37,8 ~39,8 ~39,5 ~38,3 1,
Slide 31: 2018-20 cumulated cash flow
Investor presentation 2018-20 cumulated cash flow (€bn) 60, 0 (3,3) 50, 0 (7,0) 51,7 (7,2) 40, 0 (6,7) 30, 0 (14,6) 34,2 20, 0 27,5 (3,3) 3,4 (12,3) 10, 0 13,0 0,7 (1.5) 0,0 Ordinary ∆ Provisions1 Income Financial FFO Maintenance FFO after Growth capex 2 Connections Proceeds form FCF Dividends Net F
Slide 32: Group financial targets
Investor presentation Group financial targets CAGR (%) 2017E 2018 2019 2020 2017-20 Ordinary EBITDA (€bn) 15.5 16.2 17.2 18.2 ~+6% Net ordinary income (€bn) 3.6 4.1 4.8 5.4 ~+15% Minimum dividend per share (€) 0.21 0.28 - - - Pay-out ratio 65% 70% 70% 70% +5 p.p. Implicit DPS (€) 0.23 0.28 0
Slide 33: Closing remarks
Investor presentation Closing remarks Continued excellent execution in strategic pillars Well positioned for digitalized, low carbon world Increased financial and non- financial targets Operating model driving long-term shared value for all our stakeholders 32
Slide 34: Strategic deep-dive
Investor presentation annexes 2018-20 strategic plan Strategic deep-dive
Slide 35: Plan pillars and backbones: cross-reference with SDGs
Investor presentation annexes – Strategic deep-dive Enel’s plan pillars and backbones: cross-reference with SDGs 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Growth across low carbon technologies & services Assets optimization Pillars and Innovation Engaging local communities Engaging the people we wor
Slide 36: Growth across low carbon technologies and services
Investor presentation annexes – Strategic deep-dive Growth across low carbon technologies and services Plan actions Related targets/commitments +0.6 GW storage capacity Electrification, storage & demand response +5 GW demand response Development of renewable capacity and +7.8 GW renewable capacity1
Slide 37: Assets optimization and innovation
Investor presentation annexes – Strategic deep-dive Assets optimization and innovation Plan actions Related targets/commitments +20.4 mn smart meters installed Large scale infrastructure innovation mostly 4.3 €bn digitalization capex in grid digitization, smart meters and charging stations Digitally
Slide 38: Engaging local communities
Investor presentation annexes – Strategic deep-dive Engaging local communities Plan actions Related targets/commitments 2x High-quality, inclusive and fair education 0.8 million people1 From 0.4 Access to affordable and clean energy mainly in Africa, Asia 3 million people1 and Latin America 2x Emplo
Slide 39: Engaging the people we work with
Investor presentation annexes – Strategic deep-dive Engaging the people we work with Plan actions Related targets/commitments 100% of people1 involved Appraise performance of people we work 99% of people1 appraised with1 95% of people1 interviewed (feedback) Survey corporate climate with a focus on
Slide 40: Environmental sustainability
Investor presentation annexes – Strategic deep-dive Environmental sustainability Plan actions Related targets/commitments Reduction of SO2 specific emissions -30% (vs 2010) Reduction of NOx specific emissions -30% (vs 2010) Reduction of particulates specific emissions -70% (vs 2010) Reduction of wat
Slide 41: Digitalization and related risks: cyber security framework
Investor presentation annexes – Strategic deep-dive Digitalization and related risks: cyber security framework Plan actions Related targets/commitments Single strategy approach based on business 100% of internet web applications protected risk management through advanced cyber security solutions Bus
Slide 42: Focus on corporate governance (1/3)
Investor presentation annexes – Strategic deep-dive Focus on corporate governance (1/3) Current shareholders’ structure1 2017 Annual General Meeting: Quorum Corporate Governance in a nutshell Institutional investors account for 57% on Enel’s TSO1 and 60% in the latest Enel’s AGM 48,8% 59,0% No speci
Slide 43: Focus on corporate governance (2/3)
Investor presentation annexes – Strategic deep-dive Focus on corporate governance (2/3) 78% Shareholders’ meeting Audit firm BoD composition 11% 11% Board of directors: Board of statutory Executive Non-executive 9 members1 advisors: 3 members Independent Control and risks Nomination and Corporate go
Slide 44: Focus on corporate governance (3/3)
Investor presentation annexes – Strategic deep-dive Focus on corporate governance (3/3) BoD members BoD diversity P. Grieco Non ex (Chairperson) CGSC 11% 33% F. Starace Executive 67% Age 22% Gender A. Antoniozzi Independent 67% CGSC RPC Independent 41-50 51-60 61-70 Men Women C. Calari NCC RPC 22% 4
Slide 45: Focus on remuneration policy (1/2)
Investor presentation annexes – Strategic deep-dive Focus on remuneration policy (1/2) Short-term variable remuneration1 Related targets 40%2 Entry point (50% premium) = 3.5 €bn Net Ordinary Income Target (100% premium) = 2017 Group Guidance Overperformance (120% premium) = 3.7 €bn 30%2 Entr
Slide 46: Focus on remuneration policy (2/2)
Investor presentation annexes – Strategic deep-dive Focus on remuneration policy (2/2) Long-term variable remuneration1 Related targets 60%2 Entry point (50% premium): Enel TSR >= 90% Index TSR Target (100% premium): Enel TSR >= 100% Index TSR Enel TSR vs Euro Stoxx Utilities index TSR Overper
Slide 47: Innovation
Investor presentation annexes – Strategic deep-dive Innovation Key highlights +2,300 startups scouted Moscow +100 active projects +30 startups scaled Madrid San Catania Tel Aviv 18 agreements Francisco with Venture Capital Funds 21 innovative partnerships globally Rio de Janeiro 4 Community Santiago
Slide 48: Previous plan delivery
Investor presentation annexes 2018-20 strategic plan Previous plan delivery
Slide 49: Enel today: global and diversified operator
Investor presentation annexes – Previous plan delivery Enel today: global and diversified operator1 North & Central America Italy Iberia Europe & North Africa 51% 23% 15% 58% 43% 0.8 €bn 6.9 €bn 3.4 €bn 0.6 €bn 5% 45% 9% 21% 4% 32% 100% 16% 1% 18% 34% Subsaharian South America Africa & Asia 2017E Gr
Slide 50: Enel today: diversified and resilient operator
Investor presentation annexes – Previous plan delivery Enel today: diversified operator and resilient operator 120 % 120 % 100 % 100 % 15% regulated ~15% Customers Customers1 16% Thermal Generation ~10% Merchant generation 10% 60% quasi regulated2 80% 80% 40% merchant Renewables 60% 27% 65% quas
Slide 51: Financial targets
Investor presentation annexes – Previous plan delivery Financial targets 2015 actual 2016 actual 2017 target CAGR ✔ target Ordinary EBITDA (€bn) 15.0 15.2 15.0 15.5 ~2% ✔ ✔ Net ordinary income (€bn) 2.9 3.2 3.6 ~11% ✔ ✔ DPS (€/sh) 0.16 0.18 0.231 ~15% ✔ ✔ Pay-out 50% 55% 65% ~14% target target FFO/N
Slide 52: Strategic pillars 2015-17 delivery
Investor presentation annexes – Previous plan delivery Strategic pillars 2015-17 Delivery 1 ✔ 1 €bn opex savings in 2017 in real terms Operational efficiency Maintenance capex down by over 10% 2 ✔ 16 €bn growth capex in the past three years Industrial growth 800 €mn 2017 growth EBITDA1 fully secured
Slide 53: Business drivers
Investor presentation annexes – Previous plan delivery Business drivers1 Networks Retail Renewables Thermal generation4 100% regulated EBITDA 15% regulated EBITDA2 65% quasi regulated EBITDA 60% quasi regulated EBITDA (€bn) (€bn) Large hydro (€bn) (€bn) 0.7% 14.7% 1.2% -17% CAGR CAGR CAGR CAGR 6 5,0
Slide 54: Active portfolio management
Investor presentation annexes – Previous plan delivery Active portfolio management 2015-17 active portfolio management (€bn)1 2017 Use of funds (€bn)1 6.3 5.8 0.5 Minority buy-out 1,5 2,6 1.6 Acquisitions 4.8 ~3.2 0.5 Growth capex Source of funds Use of funds 2015-16 2017E 80% of 2015-2019 plan comp
Slide 55: Build Sell and Operate model: the case in Mexico
Investor presentation annexes – Previous plan delivery Build Sell and Operate model: the case in Mexico Key figures Description and main drivers 1.7 GW capacity 0.4 MW operating assets Sale of majority stake to financial investors1 1.3 GW under construction 2.2 €bn asset value Equity IRR 11% 0.2 €bn
Slide 56: Positioning in a digitalized, low carbon world
Investor presentation annexes – Previous plan delivery Positioning in a digitalized, low carbon world CELG-D EnerNOC Demand Energy Distribution companies in Brazil (# customers, mn) #10 countries • Behind-the-meter storage market 10.8 6 GW demand 9.1 9.7 • 3 MW/9 MWh of installed capacity in respons
Slide 57: A sustainable strategy
Investor presentation annexes – Previous plan delivery A sustainable strategy Enel commitments to the global SDGs Delivery 2017E 2015-17E1 ✔ 400,000 people by 2020 ~200,000 ~500,000 3 million people by 2020, mainly in ~400,000 1.7 million Africa, Asia and Latin America ✔ 1.5 million people by 2020 ~
Slide 58: Shareholders remuneration
Investor presentation annexes – Previous plan delivery Shareholders remuneration EPS (€/sh) DPS (€/sh) 10%CAGR 0,35 20%CAGR 0,30 0,35 0,30 0,35 0,25 0,31 0,25 0,29 0,20 0,23 1 0,20 0,15 0,18 0,15 0,16 0,10 0,10 0,05 0,05 - - 2015 2016 2017 2015 2016 2017 Minimum DPS 0.21 Strategy has delivered stron
Slide 59: Financial deep-dive
Investor presentation annexes 2018-20 strategic plan Financial deep-dive
Slide 60: Assumptions: Commodities, prices, macroeconomics and FX
Investor presentation annexes – Financial deep-dive Assumptions: Commodities, prices, macroeconomics and FX 2017 2018 2019 2020 Scenario New Plan Old Plan New Plan Old Plan New Plan Old Plan New Plan Old Plan Brent $/bbl 53 48 57 52 60 55 65 - Coal $/ton 83 50 68 52 65 53 62 - Gas TTF €/MWh 17 14 16
Slide 61: Macro scenario: revised assumptions for commodities and prices
Investor presentation annexes – Financial deep-dive Macro scenario: revised assumptions for commodities and prices 4,5 0% Electricity demand South America 70, 00 Italy power price (€/MWh) Spain power price (€/MWh) 70, 00 4,0 0% (change YoY) 65, 00 51.3 52.4 50.3 51.4 2,84% 65, 00 3,5 0% 60, 00 60, 0
Slide 62: What has changed
Investor presentation annexes – Financial deep-dive What has changed Macro assumptions (€bn) Managerial actions (€bn) Yearly impact on average EBITDA Yearly impact on average EBITDA Minorities buyout Higher efficiency and margins -0.1 Demand +0.1 HIGHER EARNINGS driven by higher digitalization capex
Slide 63: EBITDA targets by Country and Global Business Line
Investor presentation annexes – Financial deep-dive EBITDA1 targets by Country and Global Business Line2 (€bn) 2017 2018 2019 2020 Italy 6.9 7.0 7.4 7.8 Global Thermal Generation 0.1 0.1 0.1 0.3 Global I&N 3.5 3.5 3.7 3.7 Global Renewable Energies 1.1 1.2 1.2 1.3 Retail 2.0 2.0 2.1 2.1 e-Solutions 0
Slide 64: EBITDA targets new vs old perimeter
Investor presentation annexes – Financial deep-dive EBITDA1 targets new vs old perimeter (€bn) Global Renewables Energies 2017 2018 2019 2020 Global Global Global Global Large Large Large Large EGP2 Renew able EGP2 Renew able EGP2 Renew able EGP2 Renew able Hydro Hydro Hydro Hydro Energies Energies
Slide 65: Capex plan 2017-20
Investor presentation annexes – Financial deep-dive Capex1,2 plan 2017-20 (€bn) 2017 2018 2019 2020 Growth Maintenance Connections Growth Maintenance Connections Growth Maintenance Connections Growth Maintenance Connections Italy 0.6 0.9 0.4 1.2 0.8 0.4 1.1 0.8 0.5 0.9 0.7 0.5 Global Thermal Generat
Slide 66: Industrial growth: main drivers and projects
Investor presentation annexes – Financial deep-dive Industrial growth: main drivers and projects Infrastructure Renewable Thermal generation e-Solutions & Networks Energies 2.3 €bn capex 0.3 €bn capex 0.1 €bn capex +0.3 €bn capex Italy +16 mn digital meters 2.0 COD > 2020 Storage >+0.1 €bn EBITDA St
Slide 67: Digitalization
Investor presentation annexes – Financial deep-dive Digitalization Networks Thermal generation2 Renewables2 Retail Networks automation % capacity with IoT % capacity with IoT Cost to serve reduction 65,0 0 Smart meters 60,0 0 120 ,00 100 ,00 90,0 0 64% -30% 63,0 0 100 ,00 80,0 0 50,0 0 61,0 0 +20mn
Slide 68: Customer focus: global retail
Investor presentation annexes – Financial deep-dive Customer focus: global retail Power unitary margin EBITDA retail power and gas (€bn)1 Power sold in free market (TWh) in free market (€/MWh) 3,5 +16% +33% -% 12,0 0 3 2.9 10,0 0 8,00 ~12 ~12 2.4 0,2 250 ,00 6,00 4,00 0,1 2,5 0,6 200 ,00 234 2,00 0,
Slide 69: Retail: Italian power market
Investor presentation annexes – Financial deep-dive Retail: Italian power market Customers (mn) Energy sold (TWh) 350 ,0 50, 0 Enel Enel 300 ,0 226,6 market share1 282,6 40, 0 15,1 market share1 36,8 250 ,0 23% 3,9 55% 7.3 30, 0 200 ,0 10.1 199,4 21.8 42% 217,7 150 ,0 20, 0 3.7 29,5 100 ,0 56,0 27,2
Slide 70: Customer focus: Italian retail
Investor presentation annexes – Financial deep-dive 250 Customer focus: Italian retail 200 Enel supply and demand balance 2017 Enel power sold Enel supply and demand balance 2020 (TWh) (TWh) 150 Market liberalization (TWh) Enel free 26% 30% 85 market share (vol.) 90, 00 80, 00 1,2 0 57 60 100 70, 00
Slide 71: Customer focus: Italian retail
Investor presentation annexes – Financial deep-dive Customer focus: Italian retail Power unitary margin EBITDA (€bn)1 Power sold in free market (TWh) in free market (€/MWh) 100% 100% B2B -40% +8% +42% 25,0 0 60% B2C 100 ,00 20,0 0 90,0 0 85 15,0 0 ~22 ~21 10,0 0 80,0 0 5,00 2,1 2,1 30 2.0 60 70,0 0
Slide 72: Customer focus: retail in Iberia
Investor presentation annexes – Financial deep-dive Customer focus: retail in Iberia Power unitary margin EBITDA (€bn) Free power market (TWh) in free market (€/MWh) +7% +55% 10,0 0 9,00 8,00 7,00 ~8 6,00 5,00 4,00 ~7 ~6 3,00 2,00 +8% 1,00 - 0,6 2017 2020 100 ,00 89 96 0,5 80,0 0 19,7 22,2 Cost-to-s
Slide 73: Customer focus: retail in South America
Investor presentation annexes – Financial deep-dive Customer focus: retail in South America EBITDA (€bn) 2017 Total free market sales (TWh) Enel Free energy sold (TWh) 2017 2020 +50% Argentina 97% 3% 136 0.2 3% 5.0 0,20 Brazil 56% 23% 21% 572 3.8 9.7 0,18 5% 0,16 0,14 Chile 45% 8% 47% 74 6.8 13.9 0,
Slide 74: Group net income by currency
Investor presentation annexes – Financial deep-dive Group net income by currency 2017 2020 73% 72% 3.6 €bn 5.4 €bn 7% 11% 3% 8% 2% 8% 7% 5% 2% 2% EUR USD BRL EUR USD BRL CLP COP Other CLP COP Other 73
Slide 75: Financial strategy
Investor presentation annexes – Financial deep-dive Financial strategy 2017 actions completed (€bn) Financial strategy for 2018-20 (€bn) 7 Yankee bonds issuance Bond refinancing 5.7 including green bonds program 1.25 Green bond issuance 2.7 Hybrid refinancing 0.5 EIB financing for Open Meter 9.4 Ren
Slide 76: 2018-20 financial strategy
Investor presentation annexes – Financial deep-dive 2018-20 financial strategy Gross debt breakdown Cost of gross debt 2017 2020 Hybrid bonds 6.4% 3.7% 4.8% 4.5% 8% 9% 14% 15% Emerging markets2 8.5% 8.9% 21% 20% Banks and other 1.6% 2.0% 56% 54% Bonds1 4.9% 4.1% 1% 2% Tax Partnership 10.0% 8.0% 2017
Slide 77: Business lines deep-dive
Investor presentation annexes 2018-20 strategic plan Business lines deep-dive
Slide 78: Global infrastructure & networks
Investor presentation annexes 2018-20 strategic plan Global infrastructure & networks
Slide 79: Integrated model fit for digitalized, low carbon world
Investor presentation - Global infrastructure and networks Integrated model fit for digitalized, low carbon world Digital infrastructure platform Distributed generation and quality of service Cash flow generation and global risk mitigation Solid backbone of our growth 78
Slide 80: Positioning and key figures
Investor presentation - Global infrastructure and networks Positioning and key figures Italy (85%)1 224 TWh distributed energy Key figures 2017 Argentina (16%) 1 31.5 mn end-users Iberia (42%) 1 18 TWh distributed energy Distributed energy (TWh) 441 110 TWh distributed energy 2.5 mn end-users 12 mn
Slide 81: Regulatory scenario: Europe
Investor presentation - Global infrastructure and networks Regulatory scenario: Europe Country WACC Next regulatory cycle Highlights Italy 5.6% 2024 Totex in 2020 Regulatory framework Iberia 6.5%1 2020 Return revision in 2020 Smart meter Romania 7.7% 2019 roll-out Stable RAB of ~ 31 €bn Stable regul
Slide 82: Regulatory scenario: South America
Investor presentation - Global infrastructure and networks Regulatory scenario: South America Country WACC Next regulatory cycle Highlights Improved scenario Argentina 12.5% 2022 in Argentina New Rio concession Brazil Rio/Celg 12.3% 2018 conditions from March 17 Brazil Cearà 12.3% 2019 RAB maximizat
Slide 83: Digitalization
Investor presentation - Global infrastructure and networks Digitalization Pipeline model Platform model Processes convercence Digitalized processes Efficiency Products Disruptive efficiency Digital supply chain Excellency Technologies Lighthouse projects Networks automation Improve quality, efficien
Slide 84: Digitalization
Investor presentation - Global infrastructure and networks Digitalization Degree of digitalization and capex plan 2018-20 (€bn) South Italy Iberia Romania Italy Iberia Romania South America Digitalization 2017E KPI America drivers Disruptive Digital process status1 3.1 2.8 2.9 2.5 0.2 0.1 0.1 0.1 Ef
Slide 85: Disruptive efficiency pilot: Digitaly
Investor presentation - Global infrastructure and networks Disruptive efficiency pilot: Digitaly Project key figures Main achievements Applied solutions Process digitalization Asset 4,00 Analysed and reviewed all core processes 3,50 3,00 4,1 • Advanced sensors end to end under operation and digital
Slide 86: Industrial growth: focus on smart meter roll out
Investor presentation - Global infrastructure and networks Industrial growth: focus on smart meter roll out Italy - Smart meter 2.0 (#mn) Iberia - Meters (#mn) 25 30 2° wave of digital transformation 25 +16 20 +1 20 15 15 55% completed by 2020 17,4 100% completed by 2018 12,3 10 10 11,2 5 5 1,4 0 0
Slide 87: Italy: Smart meter 2.0's key features and benefits
Investor presentation - Global infrastructure and networks Italy: Smart meter 2.0 ’s key features and benefits End-users Energy operators Replacement of 16 million meters with Quarter-hourly load curves Consumption profile new generation ones Flexible rates Increased awareness Enabling val
Slide 88: Efficiency
Investor presentation - Global infrastructure and networks Efficiency Cash cost evolution1 (€bn) Cash cost/end users nominal (€) Cash cost/end users real (€) -10% -13% -17% 4.5 0.2 (0.7) 4.0 69.0 69,0 1.2 60.1 57,3 1.0 3.3 3.0 2017 FX&CPI Efficiency 2020 2017 2020 2017 2020 Europe 66.1 -13.3% 57.3 E
Slide 89: Quality of Service and Network Losses
Investor presentation - Global infrastructure and networks Quality of Service and Network Losses Minutes of interruption Network Losses (%) 10 9 -5% 98% Italy 8 Chile 90% 7 89% Romania 6 83% Peru 82% 5 74% Spain 4 Brazil 3 64% Colombia 2 57% Argentina 1 0 2017 2018 2019 2020 2017 2020 Europe -4% Sou
Slide 90: CELG 2020 Project
Investor presentation - Global infrastructure and networks CELG 2020 Project Key perfomance indicators Project plan (€m) New MV lines (km) Minutes of interruption Total capex ~ 560 +277% -40% 250 ,00 200 ,00 1.80 0,00 1.60 0,00 RAB 2020 +21% vs 2017 1.40 0,00 150 ,00 223 1.20 0,00 1,910 … 1.725 1.00
Slide 91: Industrial growth 2018-20
Investor presentation - Global infrastructure and networks Industrial growth 2018-20 Growth capex1 by area (€bn) Growth capex1 by technology (€bn) Key figures 48% 67.2 mn connected end users 54% 5% 5% 4.7 €bn 4.7 €bn Cumulative growth EBITDA1 1.7 €bn 25% 20% 36% 7% Smart grid Average time to EBITDA
Slide 92: Financial targets
Investor presentation - Global infrastructure and networks Financial targets EBITDA by geograghy and capex 2017-20 (€bn) Capex by geography 2018-20 (€bn) Key trends 19% 8.7 Diversified geographical footprint 8.5 32% 7.9 0,2 0,2 7.3 0,2 0,2 2,5 2,7 5% 2,2 Stable regulatory framework 1,6 19% 11.3 with
Slide 93: Global renewable energies
Investor presentation annexes 2018-20 strategic plan Global renewable energies
Slide 94: Integrated model fit for digitalized, low carbon world
Investor presentation - Global renewable energies Integrated model fit for digitalized, low carbon world Zero-emission generation growth engine Driver of access to energy Growth engine for the utility of the future 93
Slide 95: Presence and key figures
Investor presentation - Global renewable energies Presence and key figures Key figures 2017 Managed Capacity (GW) 37.1 40.5 Production (TWh) 85.1 92 Key financials (€bn) 2017 EBITDA 4.1 Opex 1.4 Maintenance capex 0.3 Countries of presence Countries with advanced stage of development Growth capex 3.4
Slide 96: 2017 key relevant events
Investor presentation - Global renewable energies 2017 key relevant events: a very competitive battleground March April May June July Sept. Oct. Nov. Nov. – Dec. Awarded Chile USA Cimarron Entry in to Entry into Starting up Chile Tender in Spain Tender in Spain BSO Mexico DISCO tender USA wind COD B
Slide 97: Diversified regulatory framework
Investor presentation - Global renewable energies Diversified regulatory framework Renewable auctions • High competition and number of participants • Price driven • All operators • Regulatory and local content risk • Commodity PPA with customers C&I1 • High competition and low number of participants
Slide 98: Portfolio composition
Investor presentation - Global renewable energies Portfolio composition 2017 sales portfolio composition 2017 sales: focus on PPA Residual duration Offtaker Segmentation 63% 50% 6% 1% 11% ~85 TWh ~51 TWh ~51 TWh 2% 10% 93% 29% 35% Utilities & DisCos Incentivized >15 years 10-15 years Industrials Con
Slide 99: Additional capacity
Investor presentation - Global renewable energies Additional capacity Evolution per year1 (GW) 4,0 Main achievements 3,5 3,0 Leadership in construction and plant commissioning 2,5 2,0 2,6 Increase in average size of plants 1,5 2,0 1,0 Construction across 5 continents 0,5 0,9 1,0 0,3 Implementation o
Slide 100: Digitalization strategy along plant lifecycle
Investor presentation - Global renewable energies Digitalization strategy along plant lifecycle Predictive maintenance through big data1 Digitalized and automated construction 75% 85% 55% ~40% 2 Historical 2017 2020 2018 2019 2020 Predictive Corrective Maintenance and lost production saving Reductio
Slide 101: Engineering and technological leadership
Investor presentation - Global renewable energies Engineering and technological leadership Wind LCOE1 evolution Solar LCOE1 evolution 120 ,0% 120 ,0% 110 ,0% 110 ,0% 100 ,0% 100 ,0% 100% 11% 100% 90, 0% 90, 0% 22% 1 8% 1 80, 0% 80, 0% 82% 70, 0% 70, 0% 12% 60, 0% 60, 0% 66% 50, 0% 50, 0% 40, 0% 40,
Slide 102: Operational efficiency: key performance indicators
Investor presentation - Global renewable energies Operational efficiency: key performance indicators1 Hydro2 cash cost (k€/MW) Wind cash cost (k€/MW) Solar cash cost (k€/MW) Geothermal cash cost (k€/MW) 0,0 9 80, 0 0,0 9 100 ,0 0,0 9 180 ,0 0,0 8 80, 0 90, 0 70, 0 0,0 7 0,0 7 0,0 7 0,0 6 160 ,0 60,
Slide 103: Asset value maximization: sample of projects in execution
Investor presentation - Global renewable energies Asset value maximization: sample of projects in execution Spain Chile USA1 Australia Russia Technology Wind/Solar Solar/Wind/Geo Wind Solar/Wind Wind Capacity (MW) 900 240 320 320 300 Capex (USD bn) 0.9 0.3 0.4 0.4 0.4 COD 2019 2023-24 2018
Slide 104: BSO and equity partnership
Investor presentation - Global renewable energies BSO and equity partnership 2017 Track record Towards the future Mexico – 2017 track record Worldwide dedicated team 20/80 with CDPQ & CKD 0.4 GW in operation 1.3 GW under construction Negotiation ongoing in new countries US – 2017 ongoing transaction
Slide 105: Industrial growth: 2018-20 capacity additions and growth capex
Investor presentation - Global renewable energies Industrial growth: 2018-20 capacity additions and growth capex Growth capex by geography Growth capex by technology Capacity additions1 by technology 34% 4% 15% 5% 2% 1% 10% 7% 63% 8.3 €bn 8.3 €bn 7.8 GW 6% 14% 72% 4% 63% Italy Iberia South America E
Slide 106: Industrial growth: pipeline and capacity additions
Investor presentation - Global renewable energies Industrial growth: pipeline and capacity additions 14 Capacity additions 2018-201 (GW) Pipeline by geography Pipeline by technology 12 10 ~60% already addressed 8 7,8 11% 1% 3% 36% 9% 1% 49% 6 3,3 3,8 4,5 21 GW 21 GW 4 0,9 1,3 1,4 2 3,2 4,0 36% 2,2
Slide 107: Financial targets
Investor presentation - Global renewable energies Financial targets EBITDA by geograghy and capex 2017-20 (€bn) Capex by geography 2018-20 Key trends +12% EBITDA influenced by asset rotation strategy 4.4 4.6 59% 4.1 4.2 0,1 0,1 0,1 3,7 0,1 0,6 3,6 0,5 Europe growth based on new 0,6 0,1 3,2 0,8 0,1 2
Slide 108: Global e-Solutions
Investor presentation annexes 2018-20 strategic plan Global e-Solutions
Slide 109: Integrated model fit for digitalized, low carbon world
Investor presentation - Global e-Solutions Integrated model fit for digitalized, low carbon world Leading the energy transition Digital platform proposition Customer empowerment Focusing on new customers’ needs through an asset light approach 108
Slide 110: Positioning and key figures
Investor presentation - Global e-Solutions Positioning and key figures Positioning1 (€mn) Key figures 2017 2017 Italy Europe & Revenues: ~300 North Africa Demand Maintenance Customer GW sold 5.7 1.1 Revenues: ~10 Response and repair4 base (#mn) Iberia Demand Side MW Customer North & 3 Repair5 1.3 Ce
Slide 111: Customer driven organization
Investor presentation - Global e-Solutions Customer driven organization Global e-Solutions e-Industries e-Mobility e-Home e-City (B2B) (B2C-B2B-B2G) (B2C) (B2G) Italy Global product lines Solutions and commercial Iberia Customers development Local stakeholders Geographies Marketing and posit
Slide 112: Our portfolio of solutions in the Global Product Lines
Investor presentation - Global e-Solutions Our portfolio of solutions in the 4 Global Product Lines e-Industries e-Mobility e-Home e-City Consulting and auditing Installation, maintenance Public charging network Smart lighting service and repair services Distributed generation Automated home Fiber o
Slide 113: Gross margin
Investor presentation - Global e-Solutions Gross margin Gross margin by technology (€mn) Gross margin by geography (€mn) 2017 2020 600 ,00 e-Industries 450 ,00 400 ,00 e-Home 500 ,00 350 ,00 400 ,00 300 ,00 300 ,00 448 250 ,00 200 ,00 200 ,00 150 ,00 261 100 ,00 28% 22% 100 ,00 183 50,0 0 98 27% - -
Slide 114: KPI figures
Investor presentation - Global e-Solutions KPI figures 2017 2020 2017 2020 Demand GW sold 5.7 10.7 1.9x Maintenance Customer base 1.1 2,1 1.9x Response and repair1 (#mn) Demand Side Customer base MW installed/year 3 224 75x Repair2 1.3 2.4 1.9x Management (#mn) Credit cards Credit cards (#mn) 0.9 1.
Slide 115: e-Industries business model focused on flexibility services
Investor presentation - Global e-Solutions e-Industries business model focused on flexibility services Revenue streams Enabled by 2 platforms e-Industries Energy as a service Demand response EnerNOC Demand response + storage Demand side management / capacity Demand Energy peak shaving Resiliency and
Slide 116: Focus on the Demand response business
Investor presentation - Global e-Solutions Focus on the Demand response business1 Commercial & industrial Grid operator / utility clients customers e-Industries Flexibility Enel digital Load management platform Payment Payment 14,000 C&I sites 5,700 MW sold Gross margin: 80 €mn 10 countries (~80% in
Slide 117: e-Mobility business model
Investor presentation - Global e-Solutions e-Mobility business model Revenue streams Enabled by 3 technological layers 1 e-Mobility Energy Connected charging stations Charging stations 2 Installation services and O&M Smart charging Our smart software license to other charging station producers 3 V1G
Slide 118: Italy: public charging installations plan
Investor presentation - Global e-Solutions Italy: public charging installations plan Enel public charging installation plan (# cumulated) Enel products portfolio e-Mobility Enel 90% market share of total market 14,000 3.000 10,500 2.000 7,000 5,000 1.000 11.000 2,700 500 8.500 200 6.000 4.500 2.500
Slide 119: e-Home business model
Investor presentation - Global e-Solutions e-Home business model Revenue streams Enabled by 3 factors Distributed generation e-Home (PV, storage, etc) Enel customer base Maintenance and repair Network of partners Home 2 Grid Flexibility Aggregation platform Financial services Create a new home ecosy
Slide 120: Iberia and Colombia: business cases
Investor presentation - Global e-Solutions Iberia and Colombia: business cases1 Enel home services in Iberia Enel business in Colombia: Credito Facil Codensa Maintenance and repair of appliances Partnership with Colpatria bank providing credit cards to e-Home Typically periodic interventions our com
Slide 121: e-City business model
Investor presentation - Global e-Solutions e-City business model Revenue streams Enabled by 3 competitive levers e-City Energy as a service Enel capillarity presence in cities Public lighting Demand response Enel distribution networks Demand side management Flexibility Enel digital platform Wholesal
Slide 122: Italy: Open Fiber plan
Investor presentation - Global e-Solutions Italy: Open Fiber plan Total plan A&B clusters roadmap C&D clusters plan 12 FTTH future proof technology 10 Users (mn) 5 lots Wave 1 271 cities 8 6 regions 9.5 mn households ~1.4 €bn funds available 3.9 €bn capex plan 6 7,0 4.6 mn households 5-6 years time
Slide 123: Flexible distributed energy system
Investor presentation - Global e-Solutions Flexible distributed energy system Energy as a service value chain Advise Supply Optimize Flexibility Demand response Connected charging stations Demand side Smart charging management Vehicle 2 Grid Aggregation platform Home 2 Grid Best positioned to serve
Slide 124: Industrial growth 2018-20
Investor presentation - Global e-Solutions Industrial growth 2018-20 2018-20 growth capex by product line and by geography Key growth capex figures 2018-20 EBITDA by geography Energy efficiency and distributed generation projects and flexibility 43% 41% 32% services platform development 24% 0.8 €bn
Slide 125: Customer focus: e-Solutions
Investor presentation - Global e-Solutions Customer focus: e-Solutions Gross margin (€bn) Cumulated 2018-20 (€bn) Key highlights +2.5x 0.4 €bn EBITDA in 2020 3,00 2.8 1,00 2,50 2,4 0.4 0,80 1,0 2,00 >10 GW demand response 0,60 1,50 2,8 0,40 0.8 1,00 +300 k private, +9 k public charging stations 0,20
Slide 126: Global thermal generation
Investor presentation annexes 2018-20 strategic plan Global thermal generation
Slide 127: Integrated model fit for digitalized, low carbon world
Investor presentation - Global thermal generation Integrated model fit for digitalized, low carbon world Key player in the mix transition to a “low carbon” scenario Portfolio balancing and predictability Asset optimization through digitalization Maximizing value creation in residual asset life 126
Slide 128: Positioning and key figures
Investor presentation - Global thermal generation Positioning and key figures 2017 net production by technology1 2017 net production by geography1 Key figures 2017 Installed capacity1 (GW) 43 29% 27% 20% Net production (TWh) 144 19% 144 TWh 144 TWh Financials2 (€bn) 23% 29% EBITDA 1.5 53% Italy Cash
Slide 129: Digital transformation: project status
Investor presentation - Global thermal generation Digital transformation: project status Digitally integrated smart plant – reference model Processes digital re-design Additive Mobile Predictive Wearables manufacturing application maintenance Overhaul Overhaul Daily Maintenance Planning Management E
Slide 130: Efficiency
Investor presentation - Global thermal generation Efficiency Cash cost evolution1 (€bn) Maintenance1 (€bn) Opex1 (€bn) 3,50 -19% -40% -13% 3,00 2,50 2.1 0,1 (0,5) 2,00 1,6 0,5 1.7 1,4 1,50 0,3 0,5 1,00 3.25 3.00 1,6 1,4 0,50 0,3 - 2017 CPI & Efficiency 2020 2017 2020 2017 2020 Forex Maintenance Opex
Slide 131: Capacity strategy
Investor presentation - Global thermal generation Capacity strategy Key levers Installed capacity1 (GW) EBITDA per MW 2 (k€/MW) Spending allocation based -24% +40% on plant profitability 120 ,0 100 ,0 Portfolio optimization, leveraging 47,0 43.2 80,0 on strategic positioning 35,9 60,0 16,1 12,3 11,6
Slide 132: Capacity strategy: focus on coal
Investor presentation - Global thermal generation Capacity strategy: focus on coal 2018-20 environmental capex Capacity covered by environmental upgrade1 Coal fleet evolution (GW) 20,0 0 -41% (3,8) 30% 11% 15,0 0 (2,8) 5% 0.5 €bn 60% 10,0 0 6.1 GW 15,9 29% 5,00 9,3 65% - Italy Iberia South America I
Slide 133: Environmental performance
Investor presentation - Global thermal generation Environmental performance New challenges @2020 Thermal Gen. Worldwide deployment of CO2 -5% best environmental practices Base year 2007 Emissions’ levels improvement through - 30% environmental investments NOx Base year 2010 SO2 - 30% Phasing out of
Slide 134: Energy storage development: utility scale BESS
Investor presentation - Global thermal generation Energy storage development: utility scale BESS1 UK Tynemouth BESS 25MW/12.5 MWh UK US COD: February 2018 ~400 MW 75 MW Progress in construction: ~60% Italy ~60 MW Iberia ~120 MW Spain Litoral TGx + BESS South America ~50 MW BESS 20MW/11.6 MWh Austral
Slide 135: Financial targets
Investor presentation - Global thermal generation Financial targets1 EBITDA2 by geograghy and capex 2017-20 (€bn) Capex by geography 2018-20 (€bn) Key trends -7% Resilience to worsening scenario 1.5 1.4 1.4 32% 0,3 0,2 0,2 8% 1.2 0,2 3% Decommissioning program in 0,5 0,5 0,6 1.9 12% Italy reduces sp
Slide 136: Global trading
Investor presentation annexes 2018-20 strategic plan Global trading
Slide 137: Integrated model fit for digitalized, low carbon world
Investor presentation - Global trading Integrated model fit for digitalized, low carbon world Global portfolio optimization Integrated margin management Diversified global portfolio evolution leading to integrated margin optimization 136
Slide 138: Positioning and 2017 key figures
Investor presentation - Global trading Positioning and 2017 key figures Net production by technology Net power sales by destination Key figures 2017 23% 19% Net power sales (TWh) 319 6% 10% 10% 13% Net production (TWh) 255 11% 255 TWh 319 TWh 37% 17% Power purchased (TWh) 64 29% 25% Coal purchased (
Slide 139: Role of energy management
Investor presentation - Global trading Role of energy management Energy management vs competitive landscape(€/MWh) Retail competitiveness Digitalization as a strategic enabler of continuous improvement and more sophisticated approaches Power & commodity responsiveness Centralization and integration
Slide 140: The group's resilience to the volatility of commodity prices
Investor presentation - Global trading The group's resilience to the volatility of commodity prices Global exposure year 2018 Commodity price volatility generates significant margin variation January 2017 October 2017 200 Power (TWh) 105 60 100 Coal (Mton) -26 -8 0 -12 €mn Hedging activity -100 Gas
Slide 141: Forward sales Italy and Spain
Investor presentation - Global trading Forward sales Italy and Spain Italy 2017 Italy 2018 57 TWh 55 TWh Achieved 5% Achieved 25% 20% Price1 43 €/MWh Price1 43 €/MWh 35% 40% 100% 40% 40% 55% Expected Hedged Expected Hedged production production production production Spain 2017 Spain 2018 77 TWh
Slide 142: Forward sales South America
Investor presentation - Global trading Forward sales South America Chile Colombia 100% 100% 90% 100% 100% 70% 2017 2018 2020 2017 2018 2020 79 80 87 57 60 69 Peru Brazil 100% 100% 100% 100% 100% 90% 2017 2018 2020 2017 2018 2020 52 51 54 67 65 74 Hedged production Unhedged production - Average price
Slide 143: Delivery on gas contract renegotiation
Investor presentation - Global trading Delivery on gas contract renegotiation Portfolio evolution (bcm, %) Price review impact (€bn) 29 30 32 0.86 0.91 3% 9% 13% 15% 17% 20% 65% 81% 84% 74% 64% 35% 19% 2018 2019 2020 2017-19 Old 2017-20 New Legacy1 To be contracted/spot US LNG + Tap Already negotiat
Slide 144: US LNG gas portfolio
Investor presentation - Global trading US LNG gas portfolio Portfolio evolution (bcm) LNG (€c/cm) 4.4 0,6 40 2.6 30 3,0 1,7 20 0.7 10 0,7 0,9 0,9 0 1 2 2017 2019 2020 Sabine Pass Corpus Christi Other HH JKM High price volatility enhances value of US LNG optionality 1. Henry Hub natural gas spot pric
Slide 145: Financial targets
Investor presentation - Global trading Financial targets Gross Margin (€bn) Key drivers +12% Generation: enhanced results mainly due to renewables growth 13,9 13,0 12,3 12,3 Gas: increasing gross margin thanks to price review and portfolio optimization actions Power Retail: positive trend in power r
Slide 146: 9M 2017 consolidated results
Investor presentation annexes 2018-20 strategic plan 9M 2017 consolidated results
Slide 147: Financial highlights
9M 2017 consolidated results Financial highlights (€mn) 9M 2017 9M 2016 ∆ yoy Adjusted Revenues 54,188 51,459 +5% Reported EBITDA 11,450 12,010 -5% Ordinary EBITDA1 11,306 11,896 -5% -3%4 Reported EBIT 7,217 7,689 -7% Ordinary EBIT 7,073 7,666 -8% Reported Group net income 2,621 2,757 -5% Group net
Slide 148: Ordinary EBITDA evolution
9M 2017 consolidated results Ordinary EBITDA evolution (€mn) -5% -3% (399) 333 142 (247) (481) 120 00,0 129 (178) 111 110 00,0 11.896 11.497 11.195 11.306 100 00,0 900 0,0 -200 weak resource 800 0,0 -130 gas MtM 700 0,0 600 0,0 -1% 500 0,0 (Net of perimeter) 400 0,0 300 0,0 1 2 3 9M 2016 One-offs 9M
Slide 149: Adjusted EBITDA by business
9M 2017 consolidated results Adjusted EBITDA by business (€mn) -3% (96) (6) 120 00 71 (165) (57) 129 (178) Retail 115 00 Retail 1,983 €mn 110 00 11.497 1,819 €mn 11.195 Renewables 105 00 -200 weak resource Renewables 2,898 €mn 100 00 -130 gas MtM 2,704 €mn Generation 950 0 Generation 1,350 €mn 1,208
Slide 150: Adjusted EBITDA by geography
9M 2017 consolidated results Adjusted EBITDA by geography (€mn) -3% 120 00,0 Italy 215 (479) Italy 5,035 €mn 115 00,0 133 (41) 2 40 (123) 129 (178) 5,238 €mn Iberia 11.497 Iberia 2,828 €mn 110 00,0 11.195 2,349 €mn South America South America 2,670 €mn 3,056 €mn 105 00,0 Europe & 100 00,0 Europe & N
Slide 151: Ordinary EBITDA matrix
9M 2017 consolidated results Ordinary1 EBITDA matrix (€mn) Global Generation Global Infrastructures Renew able Services Retail Total Total & Trading & Netw orks Energies & Other 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 Italy 178 405 2,649 2,670
Slide 152: Ordinary EBITDA matrix: new vs old perimeter
9M 2017 consolidated results Ordinary EBITDA matrix (€mn): new vs old perimeter Global Thermal Generation & Trading Global Renewable Energies 9M 2017 9M 2016 9M 2017 9M 2016 Global Global Global Global Global Global Therm al Therm al Renew able EGP Renew able EGP Generation Generation Generation Gen
Slide 153: Gross debt structure
9M 2017 consolidated results Gross debt1 structure Long term debt by currency After swap Interest rate Long term credit ratings composition Rating Outlook 56% 27% Standard & Poors BBB Positive 84% 47.6 €bn 2% 47.6 €bn 51.6 €bn Moody’s Baa2 Stable 10% 4% 1% 73% 4% 5% 4% 23% Fitch BBB+ Stable 4% 1%2%
Slide 154: Debt structure by instrument
9M 2017 consolidated results Debt structure by instrument (€bn) Central South North & Central Europe & North Sub-Saharan Debt by instrument Enel Spa EFI Italy Iberia Total Others America America Africa Africa & Asia Bonds 12.25 19.73 - - 0.06 3.59 - 0.15 - 35.78 Bank Loans 1.04 - - 4.51 0.95 2.26 0.
Slide 155: Debt maturity coverage split by typology
Investor presentation Debt maturity coverage split by typology (€bn)1 < 3Q 2018 3Q 2018 2019 2020 2021 >2021 Total 72% Short term2 3.9 - - - - - 3.9 18.5 €bn Bank loans 1.4 0.5 1.2 1.9 1.4 4.8 11.2 and other 28% Bonds 4.6 1.0 2.6 2.3 1.5 23.7 35.7 3 Available committed credit lines Cash Total 9.9 1.
Slide 156: Disclaimer
Investor presentation Disclaimer This presentation contains certain forward-looking statements that reflect the Company’s management’s current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are based
Slide 157: Contact us
Investor presentation Contact us Luca Passa Head of Group Investor Relations Investor Relations team Serena Carioti Alessia Di Ninno Marco Donati Federica Dori Donatella Izzo Email Fabrizio Ragnacci investor.relations@enel.com Federica Todaro Emanuele Toppi Phone +39 06 8305 7975 Follow us Web site