Enel Spa · MIL:ENEL
Enel Spa — Investor Presentation (September 2016)
54 slides from Enel Spa's investor presentation, September 2016
Slide 1: Focus on Global Renewable Energies
Investor presentation Focus on Global Renewable Energies September 2016
Slide 2: Enel today
Investor presentation Enel today1 North America Italy Capacity: 2.5 GW Capacity: 27.8 GW Networks: 1.14 mn km Mexico & Central America End users: 31.6 mn Capacity: 1.0 GW Free customers: 10.5 mn Latin America Iberia Capacity: 18.6 GW Capacity: 22.8 GW Networks: 0.32 mn km Networks: 0.32 mn km End us
Slide 3: Enel today by business lines
Investor presentation Enel today by business lines1 Networks Retail Renewables Conventional generation 44% of Group EBITDA 18% of Group EBITDA 11% of Group EBITDA 27% of Group EBITDA 61.5 mn end users 55.9 mn power customers 11.1 GW installed 75.9 GW installed Total Group capacity 39.7 mn smart
Slide 4: Enel today: Global Renewable Energies
Investor presentation Enel today: Global Renewable Energies Installed capacity by geography1 Net production by technology2 24% 28% 8% 15% 11.1 GW 34.6 TWh 18% 22% 51% 28% 2% 3% 1% Latam Iberia Wind Hydro Geo Italy RoW Solar Other North America RoE 1. As of June 2016 Countries with installed capacity
Slide 5: Group integration: compelling rationale
Investor presentation Group integration: compelling rationale Upgrade medium/long-term growth prospects Group growth capex1 Generation growth capex1 Fully exploit growth opportunities: +7.7 GW in 2016-19 50% of 2016-19 group growth capex and growth EBITDA 85% of generation growth capex 85% 53
Slide 6: Key pillars
Investor presentation Key pillars 1 Operational efficiency 2 Industrial growth 3 Active portfolio management 4 Shareholder remuneration 5
Slide 7: Operational efficiency: Group opex evolution (€bn)
Investor presentation Operational efficiency: Group opex evolution (€bn) Opex evolution1 Opex by business3 -7% -18% Networks €/end user 58.5 56.8 54.2 47.9 (1.4) FY 2014 FY 2015 LTM 2019 0.5 0.2 -1% -20% 9.3 Renewables (0.3) k€/MW 8.3 76.0 78.7 75.2 61.0 FY 2014 FY 2015 LTM 2019 -11% -10% Convention
Slide 8: Operational efficiency: Global Renewable Energies production and cost optimization
Investor presentation Operational efficiency: Global Renewable Energies production and cost optimization Lost production factor O&M costs/MW1 5.0% 100 Hydro Hydro 2.2% 84 2.0% 80 4.0% 100 Geo Geo 1.9% 90 1.8% 85 5.0% 100 Wind Wind 2.7% 72 2.0% 70 3.3% 100 Solar Solar 2.0% 73 1.0% 50 Historical 2015
Slide 9: Key pillars
Investor presentation Key pillars 1 Operational efficiency 2 Industrial growth 3 Active portfolio management 4 Shareholder remuneration 8
Slide 10: Industrial growth: 2016-19 Group capex plan (€bn)
Investor presentation Industrial growth: 2016-19 Group capex plan (€bn) Total capex Growth capex by business Growth capex by geography 9% 3% 25% 40% 1% 34% 12% 1% 28.5 €bn 17 €bn 17 €bn 21% 41% 60% 53% 95% Maintenance Growth Renewables Networks Latam Italy Generation Retail Iberia RoW Other Regulate
Slide 11: Industrial growth: Group growth EBITDA (€bn)
Investor presentation Industrial growth: Group growth EBITDA (€bn) Key drivers Growth EBITDA Cumulative growth EBITDA1 11% 70% of 2017 growth EBITDA 2.6 11% already addressed 7.2 €bn 49% 1.4 Spread over WACC >200 bps 29% 0.8 0.4 Average time to EBITDA <2 years Renewables Networks 2015 2016 2017 201
Slide 12: Industrial growth: 2016-19 Global Renewable Energies growth
Investor presentation Industrial growth: 2016-19 Global Renewable Energies growth Growth capex by geography Planned capacity additions1 (GW) 11% 0.6 7.7 3.9 30% 9 €bn 50% 1.6 1.6 9% Latam Europe 2016-19 COD Projects in Tenders Residual additions 1H 2016 execution awarded target RoW North America 80
Slide 13: Industrial growth: Global Renewable Energies capex in execution
Investor presentation Industrial growth: Global Renewable Energies capex in execution1 By geography By technology By year 3% 65% 8% 38% 2% 3% 37% 10% 6.0 €bn 6.0 €bn 6.0 €bn 10% 19% 6% 50% 49% 2016 2017 Latam Europe Wind Solar Hydro RoW North America 2018 2019 Geo Other Over 60% of 2016-19 total gro
Slide 14: Industrial growth: recently awarded renewable auctions
Investor presentation Industrial growth: recently awarded renewable auctions Mexico Peru Enel competitive advantage Technology Solar PV Wind / Solar PV / Hydro First utility scale plants Capacity 1,000 MW 326 MW Global procurement Production 2,250 GWh 1,200 GWh Multiple bids approach Capex <900 m
Slide 15: Industrial growth: installation cost evolution
Investor presentation Industrial growth: installation cost evolution 1 Wind unitary capex evolution ($m/MW) Solar unitary capex evolution ($m/MW) Chile Chile 1.9 1.8 Peru Mexico 1.3 0.9 2013 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Technological improvement drives increasing cost competitiv
Slide 16: Industrial growth: new businesses
Investor presentation Industrial growth: new businesses Storage Isolated grids Distributed generation Catania 1 - Solar PV 10MW Ollagüe Chile: 250kW micro-grid Integrated control systems 1MW/2MWh nickel chloride battery integrated with solar and wind Potenza Pietragalla - Wind 18MW Advanced developm
Slide 17: Industrial growth: Global Renewable Energies EBITDA evolution
Investor presentation Industrial growth: Global Renewable Energies EBITDA evolution 2015-19 EBITDA (€bn) Main drivers by geography Growth as a key factor in Latin America, 1.1 0.1 (0.3) North America and new countries 0.1 2.7 Efficiency mitigating costs associated 1.7 with additional capacity and st
Slide 18: Key pillars
Investor presentation Key pillars 1 Operational efficiency 2 Industrial growth 3 Active portfolio management 4 Shareholder remuneration 17
Slide 19: Group active portfolio management
Investor presentation Group active portfolio management ~6 €bn ~6 €bn Disposals already finalized1 (€bn) Cashed-in1,2 Additional Slovenske Elektrarne3 2.0 1.6 growth 1.0 €bn capex >2 EGP Portugal 0.5 0.5 Minority EGP North America 0.4 0.4 buy-outs 0.2 €bn <2 SE Hydropower - SF Energy 0.4 0.4 Alrea
Slide 20: Global Renewable Energies active portfolio management
Investor presentation Global Renewable Energies active portfolio management Expected flows (€bn) Key drivers 2.5 1.3 Tactical approach to create value 1.2 Consolidation options 0.6 2015-19 Secured Residual 2016-19 2015-19 net flow of 1.9 €bn confirmed planned transactions disposals planned disposals
Slide 21: Key pillars
Investor presentation Key pillars 1 Operational efficiency 2 Industrial growth 3 Active portfolio management 4 Shareholder remuneration 20
Slide 22: Shareholder remuneration
Investor presentation Shareholder remuneration Dividend policy Minimum DPS (€/sh) +13% CAGR +14% 0.18 65% 65% 0.16 55% 60% 0.14 50% 2015 2016 2017 2018 2019 2014 2015 2016 45% 55% 60% Implicit payout Dividend payment of 0.16 € per share on 2015 results Implicit payout ratio of 55% 21
Slide 23: Closing remarks
Investor presentation Closing remarks
Slide 24: Group planned evolution
Investor presentation Group planned evolution 2015-19 Group installed capacity evolution 2015-19 Group EBITDA evolution 32% 33% 1% 12% 12% 43% 9% 11% 18% 47% 90 GW 6% 14% 83 GW 15 €bn 17 €bn 16% 16% 4% 18% 30% 13% 19% 18% 28% Hydro Renewables Nuclear CCGT Coal Oil & Gas Networks Generation Renew
Slide 25: Global Renewable Energies targets
Investor presentation Global Renewable Energies targets Planned additional capacity Total capex EBITDA (€bn) 16% 11% 2.7 2.3 42% 2.0 7.7 GW 28% 9.7 €bn 47% 31% 11% 14% 2016 2017 2019 Latam Europe Latam Europe RoW North America RoW North America 24
Slide 26: Group targets
Investor presentation Group targets CAGR (%) 2015 Old 2016 New 2016 2017 2015-19 Ordinary EBITDA (€bn) 15.0 14.7 15.0 15.5 ~+4% Net ordinary income (€bn) 2.9 3.1 3.2 3.4 ~+11% Minimun DPS 0.161 €/sh 0.18 €/sh 0.18 €/sh - ~+17% Pay-out 50%2 55% 55% 60% +15 p.p FFO/Net Debt 25% 23% 25% 26% ~+4 p
Slide 27: Appendix
Investor presentation Appendix
Slide 28: Global Renewable Energies: EBITDA evolution and net production
Investor presentation - Appendix Global Renewable Energies: EBITDA evolution and net production EBITDA1 (€bn) Net production as of FY15 Net production including large hydro2 75 85 64 36% 65 52 38% 45 33.8 TWh 89.3 TWh 1.7 1.7 25 1.3 62% 5 64% (1 5 ) 1.0 1.1 0.8 (3 5 ) (5 5 ) 0 2010 2012 2015 Merchan
Slide 29: Forward sales
Investor presentation - Appendix Forward sales1 Italy 2016 Italy 2017 62 TWh 65 TWh Regulated / Achieved Regulated / Achieved quasi regulated 10% quasi regulated 10% 30% Price2 46 €/MWh 30% Price2 41 €/MWh Price driven Price driven 90% vs. plan vs. plan Spread driven 60% Spread driven 60% Spre
Slide 30: Global Renewable Energies gross pipeline
Investor presentation - Appendix Global Renewable Energies gross pipeline1 Pipeline by technology Pipeline by geography Pipeline by COD 3% 16% 27% 1% 62% 19.6 GW 15% 19.6 GW 19.6 GW 51% 21% 34% 52% 18% Wind Solar Latam Europe 2017 2018 >2018 Hydro Geo RoW North America 1. As of June2016 29
Slide 31: Upcoming renewables tenders
Investor presentation - Appendix Upcoming renewables tenders October-16 November-16 December-16 Brazil Wind Italy Panama Colombia Ethiopia Brazil Solar Greece Namibia Ethiopia India Geothermal Italy Italy Hydro Italy Biomass Italy 30
Slide 32: Global Renewable Energies contracts portfolio
Investor presentation - Appendix Global Renewable Energies contracts portfolio1 By geography By credit rating By remaining contract duration 20% AA 4% 45% 4% 7% 37% 7% 4% BBB 21% 27% 16% 63% 89% 5% 18% 5% A 28% AA+ AA AA- Latam North America 0-10 yrs 10-15 yrs >15 yrs A+ A A- BBB+ BBB BBB- 1. Based
Slide 33: Annexes
Investor presentation Annexes
Slide 34: 1H 2016 Group ordinary EBITDA evolution (€mn)
Investor presentation - Annexes 1H 2016 Group ordinary EBITDA evolution (€mn) +3% +5% 437 (392) 117 (262) 236 105 7,812 7,929 7,688 Retail 7,426 335 1 2 1H 2015 One-offs 1H 2015 Growth Efficiency Scenario Forex 1H 2016 One-offs 1H 2016 ordinary adjusted Energy adjusted ordinary margin & retail 1. In
Slide 35: 1H 2016 Group adjusted EBITDA by business (€mn)
Investor presentation - Annexes 1H 2016 Group adjusted EBITDA by business (€mn) +5% 338 (86) (392) Retail 368 (17) Retail 1,085 €mn 175 1,421 €mn 7,812 Renewables Renewables 7,426 946 €mn 920 €mn Generation Generation 1,858 €mn 2,018 €mn Networks Networks 3,529 €mn 3,522 €mn 1H 2015 Global Global Gl
Slide 36: 1H 2016 Global Renewable Energies: EBITDA analysis (€mn)
Investor presentation - Annexes 1H 2016 Global Renewable Energies: EBITDA analysis (€mn) -3% 119 (3) (132) North America (1) (9) North America 194 €mn 234 €mn 946 920 Latin America Latin America 166 €mn 198 €mn Europe2 Europe2 586 €mn 488 €mn 1H 2015 Growth Efficiency Scenario Perimeter 1 Forex 1H 2
Slide 37: 1H 2016 reported EBITDA matrix (€mn)
Investor presentation - Annexes 1H 2016 reported EBITDA matrix (€mn) Global Generation Global Infrastructure Renew able Services Retail Total3 Total3 & Trading & Netw orks Energies & Other 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 Italy 506 562 1
Slide 38: 1H 2016 ordinary EBITDA matrix (€mn)
Investor presentation - Annexes 1H 2016 ordinary1 EBITDA matrix (€mn) Global Generation Global Infrastructure Renew able Services Retail Total4 Total4 & Trading & Netw orks Energies & Other 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 Italy 382 421
Slide 39: 1H 2016 Group net installed capacity by technology and geography
Investor presentation - Annexes 1H 2016 Group net installed capacity: breakdown by technology and geography Solar Oil&Gas MW Hydro1 Wind Geothermal Nuclear Coal CCGT Total & Other ST/OCGT Italy 12,421 728 761 99 - 6,478 4,535 2,739 27,760 Iberia 4,763 1,616 - 46 3,318 5,168 5,445 2,417 22,774 Latam
Slide 40: 1H 2016 Group net production by technology and geography
Investor presentation - Annexes 1H 2016 Group net production: breakdown by technology and geography Solar Oil&Gas GWh Hydro1 Wind Geothermal Nuclear Coal CCGT Total & Other ST/OCGT Italy 8,571 765 2,935 50 - 13,817 3,283 191 29,611 Iberia 5,085 2,015 - 90 12,843 6,580 2,836 3,198 32,648 Latam 16,946
Slide 41: 1H 2016 Group additional capacity by technology and geography
Investor presentation - Annexes 1H 2016 Group additional capacity: breakdown by technology and geography Solar Oil&Gas MW Hydro1 Wind Geothermal Nuclear Coal CCGT Total & Other ST/OCGT Italy 3 8 - 15 - - - - 26 Iberia - - - - - - - - - Latam 40 112 - 298 - - - - 450 East Europe - - - - - - - - - Rom
Slide 42: 1H 2016 renewable projects in execution (MW)
Investor presentation - Annexes 1H 2016 renewable projects in execution (MW) MW Wind Hydro Geothermal Solar Biomass Total Italy - 8 2 - 32 42 Iberia - - - - - - Latam 783 152 38 869 - 1,842 East Europe 1 154 - - - - 154 North America 658 - - 150 - 808 Other Countries2 904 - - 165 - 1,069 Total 2,499
Slide 43: 1H 2016 renewable projects under construction (MW)
Investor presentation - Annexes 1H 2016 renewable projects under construction (MW) MW Wind Hydro Geothermal Solar Biomass Total Italy - 8 - - 1 9 Iberia - - - - - - Latam 611 152 38 766 - 1,567 East Europe 1 - - - - - - North America 658 - - 150 - 808 Other Countries2 199 - - 165 - 364 Total 1,468 1
Slide 44: 1H 2016 renewable projects ready to build (MW)
Investor presentation - Annexes 1H 2016 renewable projects ready to build (MW) MW Wind Hydro Geothermal Solar Biomass Total Italy - - 2 - 31 33 Iberia - - - - - - Latam 172 - - 103 - 275 East Europe 1 154 - - - - 154 North America - - - - - - Other Countries2 705 - - - - 705 Total 1,031 - 2 103 31 1
Slide 45: FY 2015 Group ordinary EBITDA by business (€mn)
Investor presentation - Annexes FY 2015 Group ordinary EBITDA by business (€mn) -3% 306 (393) Retail (63) 16 56 (384) Retail 1,915 €mn 15,502 1,826 €mn Renewables Provisions (€mn) 15,040 Renewables 1,815 €mn Networks (439) 1,710 €mn Generations (179) Generation Renewables (42) Generation Retail (105
Slide 46: FY 2015 Group ordinary EBITDA by geography (€mn)
Investor presentation - Annexes FY 2015 Group ordinary EBITDA by geography (€mn) -3% Renewables Renewables 1,815 €mn 271 82 (452) 1,710 €mn 131 (63) (47) (384) East Europe East Europe 1,210 €mn 15,502 1,308 €mn Provisions (€mn) 15,040 Latam Latam 3,092 €mn Italy (467) 3,167 €mn Iberia (363) Iberia L
Slide 47: FY 2015 Global Renewable Energies: EBITDA analysis (€mn)
Investor presentation - Annexes FY 2015 Global Renewable Energies: EBITDA analysis (€mn) -6% 178 (27) (160) 102 (42) (21) (155) North America 1,815 North America 276 €mn 1,710 352 €mn Latin America Latin America 202 €mn 364 €mn Europe3 Europe3 1,337 €mn 994 €mn FY 2014 Growth Efficiency Scenario For
Slide 48: FY 2015 EBITDA reported matrix (€mn)
Investor presentation - Annexes FY 2015 EBITDA reported matrix (€mn) Global Generation Global Infrastructures Renew able Services Retail Total & Trading & Netw orks Energies & Other FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 Italy 797 1,157 3,933 3,935 -
Slide 49: FY 2015 Group total net production by technology and geography
Investor presentation - Annexes FY 2015 Group total net production: breakdown by technology and geography Other Oil&Gas GWh Large Hydro Hydro EGP Nuclear Coal CCGT Total renewables ST/OCGT Italy 11,939 5,974 7,110 - 35,954 7,147 394 68,518 Iberia 7,175 75 4,309 25,756 26,139 7,495 6,495 77,444 Latam
Slide 50: Commitments to United Nations Sustainable Development Goals
Investor presentation - Annexes Commitments to United Nations Sustainable Development Goals Context Enel’s positioning Access to Electricity: 3 million beneficiaries in Africa, Asia, Latam by 2020 United Nations’ post-2015 Education: 400,000 beneficiaries by 2020 Sustainable Development Goals
Slide 51: Formula E
Investor presentation - Annexes Formula E Strong partnership Formula E is partnering with Enel to promote the advancement of the championship’s power technology infrastructure. Formula E will showcase to a global audience the technologies typical of the future smart city, delivered at the core of so
Slide 52: Vehicle-to-Grid
Investor presentation - Annexes Vehicle-to-Grid Strong industrial partnership between Enel and Nissan Joint business development action and scouting activities Launch of the first vehicle-to-grid trial in the UK connecting 100 V2G units Innovative two-way charger and management system Creating the f
Slide 53: 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 base
Slide 54: Contact us
Investor presentation Contact us Luca Passa Head of Group Investor Relations Elisabetta Ghezzi Investor Relations Holding Donatella Izzo Investor Relations Sustainability and Other Countries Email Marco Donati investor.relations@enel.com Investor Relations Reporting and Corporate Governance Phone +3