Slide 1: 1Q 2014 Results
1Q 2014 Results May 8, 2014 Enel
Slide 2: Opening remarks
Opening remarks Italian and Iberian operations EBITDA up by 7%, despite weak demand and negative regulatory framework in Spain Strong increase in demand in Latam, up by ca. 4% vs last year Negative forex effect of 107 €mn, mainly in Latam and Russia Opex reduction and Group’s restructuring well on t
Slide 3: Financial highlights
Financial highlights Consolidated results (€mn) 1Q13 % 1Q13 restated1 1Q14 vs restated Revenues 20,885 20,445 18,182 -11.1 EBITDA 4,077 4,014 4,036 +0.5 - recurring2 4,077 4,014 3,904 -2.7 EBIT 2,554 2,519 2,608 +3.5 Group net income 852 852 895 +5.0 Group net ordinary income2 852 852 782 -8.2 Net d
Slide 4: Financial highlights: From EBIT to Net Income
Financial highlights From EBIT to Net Income (€mn) 1Q13 % 1Q13 restated1 1Q14 vs. restated EBIT 2,554 2,519 2,608 +3.5 Net financial charges (674) (672) (801) +19.1 Interest charges (734) (734) (686) -6.5 Other 60 58 (115) n.m. Net income from equity investments using equity 29 50 4 -92.0 method EBT
Slide 5: Focus on forward electricity sales
Focus on forward electricity sales Level of total production hedged (%) Italy Spain2 100 100 100 100 ~5 ~ 50 ~ 80 ~ 95(1) Unhedged ~ 50(1) Hedged ~ 20 2014 2015 2014 2015 Latam Slovakia 100 100 100 100 ~ 25 ~ 30 ~ 60 ~ 75 ~ 70 ~ 40 2014 2015 2014 2015 Enel Group Investor Relations 1. Including roll-
Slide 6: Group EBITDA evolution (€mn)
Group EBITDA evolution (€mn) +0.5% 4,014 +106 +82 -11 -83 -157 +4 +81 4,036 24 105 477 481 Latam operations: Latam operations: 704 €mn 552 €mn 1,660 1,503 Iberian operations: Iberian operations: 956 €mn 951 €mn S&H EGP 281 364 Iberia & Latam International 947 958 I&N Italian operations: Italian oper
Slide 7: EBITDA evolution: G&EM Italy (€mn)
EBITDA evolution: G&EM Italy (€mn) +36.4% +51 397 +32 +23 291 1Q13 Generation Gas Other2 1Q14 restated1 margin margin 1. Due to the application of IFRS 11 (-13 €mn) Enel Group 2. Including non recurring item of +50 €mn remeasurement of fair value of SE Hydropower Investor Relations 6
Slide 8: EBITDA evolution: Market Italy (€mn)
EBITDA evolution: Market Italy (€mn) +34.2% +93 -11 322 240 1Q13 Free Regulated 1Q14 restated market market Enel Group Investor Relations 7
Slide 9: EBITDA evolution: Infrastructure & Networks Italy (€mn)
EBITDA evolution: Infrastructure & Networks Italy (€mn) -1.1% 958 -27 -33 +49 947 1Q13 Energy Connection Other 1Q14 restated margin fees Enel Group Investor Relations 8
Slide 10: EBITDA evolution: International (€mn)
EBITDA evolution: International (€mn) -22.8% 364 -39 -11 -15 -18 120 281 8 102 77 Russia (Enel OGK-5) France, Belgium, EIH3 66 SEE2 Slovakia 159 120 -6 -7 1Q13 Slovakia SEE2 France, Russia 1Q14 restated1 Belgium, (Enel OGK-5) EIH3 Enel Group 1. Due to the application of IFRS 11 (-24 €mn) Investor Re
Slide 11: EBITDA evolution: Endesa - Iberia (€mn)
EBITDA evolution1: Endesa - Iberia (€mn) -0.5% +54 -107 956 +48 951 1Q13 Liberalized Regulated Other 1Q14 restated2 business business Enel Group 1. Enel’s GAAP figures Investor Relations 2. Due to the application of IFRS 11 equals to (-13 €mn) 10
Slide 12: EBITDA evolution: Endesa - Latam (€mn)
EBITDA evolution1: Endesa - Latam (€mn) -21.6% +37 -56 704 -54 -79 552 1Q13 Generation Distribution Other Forex effect 1Q14 restated2 Enel Group 1. Enel’s GAAP figure Investor Relations 2. Due to the application of IFRS 11 equals to (-11 €mn) 11
Slide 13: EBITDA evolution: Enel Green Power (€mn)
EBITDA evolution: Enel Green Power (€mn) +0.8% 477 +5 -26 +25 481 40 65 158 132 North America Iberia and Latin America 279 284 Italy and Europe 1Q13 Italy and Iberia and North 1Q14 restated1 Europe Latin America America Enel Group Investor Relations 1. Due to the application of IFRS 11 (-1 €mn) 12
Slide 14: Net debt evolution (€mn)
Net debt evolution (€mn) -1.833(1) December 31, Cash flow Capex Net financial Taxes Dividends3 Extra- March 31, 2013 from operations charges ordinary 2014 (restated2) activities +10(4) +1(4) -39,706 -41,539 +455 -1,083 -769 -100 -296 -49 1. Net debt change calculated on continuing operations Enel Gr
Slide 15: Operational and financial annexes
Operational and financial annexes
Slide 16: Production mix (TWh)
Production mix (TWh) +4.1% 17.2 17.9 0.5% 0.7% 10.2% 7.1% Group production mix 49.0% Italy -3.0% 50.1% 9.9% 10.1% 70.1 68.0 33.3% 29.1% 9.8% 11.4% 1Q13 1Q14 15.4% 12.2% restated 25.7% -5.3% 28.0% 15.8% 15.2% 52.9 50.1 8.3% 6.8% 15.2% 12.8% 24.8% 26.6% 17.1% 13.9% 1Q13 1Q14 Other Countries 20.9% 17.5
Slide 17: 1Q2014 Group total net installed capacity: breakdown by source and location
1Q2014 Group total net installed capacity1: breakdown by source and location MW Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 12,690 1,586 - 6,552 5,199 10,767 36,794 Iberia 4,722 1,777 3,318 5,306 5,445 2,925 23,493 Centrel 2,329 27 1,814 806 - - 4,976 SEE 19 1,025(2) - - 406(3)
Slide 18: 1Q2014 Group total net production: breakdown by source and location
1Q2014 Group total net production1: breakdown by source and location GWh Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 5,954 1,764 - 8,758 1,273 123 17,872 Iberia 2,887 1,472 6,883 2,856 1,169 1,495 16,762 Centrel 871 21 3,832 478 - - 5,202 SEE 17 623(2) - - 221(3) - 861 Americas
Slide 19: 1Q2014 Enel Green Power net installed capacity: breakdown by source and location
1Q2014 Enel Green Power net installed capacity: breakdown by source and location MW Hydro Geothermal Wind Other TOTAL Italy & Europe 1,531 723 1,639 208 4,101 Iberia & Latam 775 - 2,262 36 3,073 North America 317 72 1,265 29 1,683 TOTAL 2,623 795 5,166 273 8,857 Enel Group Investor Relations 18
Slide 20: 1Q2014 Enel Green Power net production: breakdown by source and location
1Q2014 Enel Green Power net production: breakdown by source and location GWh Hydro Geothermal Wind Other TOTAL Italy & Europe 1,816 1,340 1,000 43 4,199 Iberia & Latam 778 - 1,727 33 2,538 North America 240 1119 1,315 10 1,684 TOTAL 2,834 1,459 4,042 86 8,421 Enel Group Investor Relations 19
Slide 21: Group EBITDA: regulated/unregulated activities
Group EBITDA: regulated/unregulated activities 1Q 2014 EBITDA recurring Stability and high visibility 3,904 €mn 44% 12% 44% Forward sales and hedging procurement Unregulated contracts to protect Regulated margin Enel Green Power Enel Group Investor Relations 20
Slide 22: Enel's long-term debt maturity profile (€mn)
Enel’s long-term debt maturity profile (€mn) Endesa Enel Group (excluding Endesa) 28,433 2,604 Bonds 4,644 Bank loans and others 2,053 25,829 7,610 6,697 6,208 472 2,647 4,918 805 1,035 739 7,138 5,892 489 5,173 4,179 2,158 <12m 2Q15-4Q15 2016 2017 2018 After 2018 6 years and 9 months Average cost o
Slide 23: Enel Group liquidity analysis (€mn)
Enel Group liquidity analysis (€mn) Amount Outstanding Available (1) Committed credit lines 16,209 1,489 14,720 Cash and cash equivalents - (8,523) 8,523 Total 16,209 (7,034) 23,243 Uncommitted lines 803 85 718 Commercial paper 9,290 2,253 7,037 Total liquidity 26,302 (4,696) 30,998 Enel Group Inves
Slide 24: Debt structure
Debt structure1 • Average debt maturity: 6 years and 9 months • Average cost of gross debt2: 5.0% • (Fixed+hedged)/Total gross long-term debt: 82% • Rating: Standard&Poor’s = BBB/A-2 Stable Outlook Moody’s = Baa2/P-2 Negative Outlook Fitch3 = BBB+/F2 Stable December 31, March 31, €mn % 2013 2014 Lon
Slide 25: Enel's group financial debt evolution
Enel’s group financial debt evolution1 Enel Group (excluding Endesa) Endesa Group - Total €mn 12.31.2013 03.31.2014 12.31.2013 03.31.2014 03.31.2014 Bank loans – maturities > 12m 6,340 6,646 1,533 1,208 7,854 Bonds – maturities > 12m 37,924 37,253 3,559 3,190 40,443 Preference shares > 12m - - - - -
Slide 26: Enel's group financial debt by subsidiary
Enel’s group financial debt by subsidiary1 €mn Enel SpA Endesa EFI2 EIH2 Slovenské EP2 ED2 Other Total Bonds 20,419 3,484 20,814 298 - - - 72 45,087 Bank loans - 1,542 - - 1,393 474 3,270 2,964 9,643 Other loans (5) (2,615) - - (830) (285) (948) 71 (4,612) Commercial paper - 656 1,597 - - - - (1) 2,
Slide 27: Enel's group financial debt
Enel’s group financial debt Average cost of net debt Average cost of gross debt Average residual maturity (years:months) 6.2% 6.6% 6.1% 6:11 6:11 6:9 4.8% 4.9% 5.0% 2012 2013 1Q 2014 2012 2013 1Q 2014 2012 2013 1Q 2014 Net financial debt (€bn) Fixed + Hedged Fixed + Hedged /Total net debt /Total gro
Slide 28: Enel's long-term debt maturity profile (€mn)
Enel’s long-term debt maturity profile (€mn) Enel Group (excluding Endesa) €mn <12m 2Q15-4Q15 2016 2017 2018 After 2018 Bank loans 1,455 676 571 494 969 3,936 Bonds 4,350 1,433 4,535 3,625 6,100 21,560 Other 87 49 67 60 69 333 Total 5,892 2,158 5,173 4,179 7,138 25,829 Endesa €mn <12m 2Q15-4Q15 2016
Slide 29: Enel Group liquidity analysis excluding Endesa (€mn)
Enel Group liquidity analysis excluding Endesa (€mn)1 Amount Outstanding Available Revolving Credit Facility (2015)2 9,440 - 9,440 (3) Other committed credit lines 2,955 1,368 1,587 Total committed credit lines 12,395 1,368 11,027 Other short-term bank debt - uncommitted lines 224 85 150 Total credi
Slide 30: Endesa liquidity analysis (€mn)
Endesa liquidity analysis (€mn)1 Amount Outstanding Available Total committed credit lines 3,814 121 3,693 Other short-term bank debt – uncommitted lines 568 - 568 Total credit lines 4,382 121 4,261 Commercial paper issued by the Endesa Group 3,290 656 2,634 Total credit lines + CP 7,672 777 6,895 C
Slide 31: Capex by business area (€mn)
Capex by business area (€mn)1 +4.2% 1,039 1,083 9 6 -33.3% 259 314 +21.2% Other2 Enel Green Power 320 332 +3.8% Iberia & Latam International 179 Infrastructure & +13.4% 203 Networks Market 223 -8.5% Generation & 204 Energy 3 Management 1 -66.7% 46 23 -50.0% 1Q13 1Q14 restated Enel Group 1. Continuin
Slide 32: EBITDA evolution - Other (€mn)
EBITDA evolution - Other1 (€mn) >100% +78 105 24 +3 1Q13 Services Other 1Q14 restated Enel Group Investor Relations 1. Including Services & Holding, Engineering & Research, upstream gas and nuclear activities 31
Slide 33: Balance sheet
Balance sheet FY13 €mn restated 1Q14 % Net financial debt 39,706 41,539 +4.6 Shareholders’ equity 52,832 52,746 -0.2 Net capital employed 92,538 94,285 +1.9 Enel Group Investor Relations 32
Slide 34: Generation & Energy Management - Italy
Generation & Energy Management - Italy 1Q13 €mn 1Q14 % restated Revenues 6,480 4,972 -23.3 EBITDA 291 397 +36.4 EBIT 195 282 +44.6 Capex 46 23 -50.0 (1) Headcount 5,621 5,526 -1.7 Enel Group Investor Relations 1. As of December 31st, 2013 33
Slide 35: Market - Italy
Market - Italy 1Q13 €mn 1Q14 % restated Revenues 4,933 4,392 -11.0 EBITDA 240 322 +34.2 EBIT 81 168 >100 Capex 3 1 -66.7 (1) Headcount 3,687 3,664 -0.6 Enel Group Investor Relations 1. As of December 31st, 2013 34
Slide 36: Infrastructure & Network - Italy
Infrastructure & Network - Italy 1Q13 €mn 1Q14 % restated Revenues 1,853 1,850 -0.2 EBITDA 958 947 -1.1 EBIT 718 702 -2.2 Capex 223 204 -8.5 (1) Headcount 17,689 18,484 +4.5 Enel Group Investor Relations 1. As of December 31st, 2013 35
Slide 37: International
International 1Q13 €mn 1Q14 % restated Revenues 1,660 1,367 -17.7 EBITDA 364 281 -0.2 EBIT 231 193 -0.2 Capex 179 203 +13.4 (1) Headcount 11,439 11,245 -1.7 Enel Group Investor Relations 1. As of December 31st, 2013 36
Slide 38: Iberia & Latam
Iberia & Latam 1Q13 €mn 1Q14 % restated Revenues 7,968 7,241 -9.1 EBITDA 1,660 1,503 -9.5 EBIT 942 835 -11.4 Capex 320 332 +3.8 (1) Headcount 22,541 22,449 -0.4 Enel Group Investor Relations 1. As of December 31st, 2013 37
Slide 39: Enel Green Power
Enel Green Power 1Q13 €mn 1Q14 % restated Revenues 704 702 -0.3 EBITDA 477 481 +0.8 EBIT 357 346 -3.1 Capex 259 314 +21.2 (1) Headcount 3,472 3,520 +1.4 Enel Group Investor Relations 1. As of December 31st, 2013 38
Slide 40: Other (1/2)
Other1 (1/2) 1Q13 €mn 1Q14 % restated Revenues2 431 517 +20.0 Holding 72 65 -9.7 Services 324 320 -1.2 Engineering & Research 63 76 +20.6 Upstream 0 82 >100 EBITDA3 24 105 >100 Holding 9 2 -77.8 Services 24 27 +12.5 Engineering & Research (3) (1) +66.7 Upstream (6) 77 n.m. 1. Including Services & Ho
Slide 41: Other (2/2)
Other1 (2/2) 1Q13 €mn 1Q14 % restated EBIT2 (5) 82 n.m. Holding 7 1 -85.7 Services & other (2) 6 n.m. Engineering & Research (4) (2) +50.0 Upstream (6) 77 n.m. Capex 9 6 -33.3 Holding 1 0 -100 Services & other 6 3 -50.0 Engineering & Research 0 1 >100 Upstream 2 2 - (3) Headcount 5,896 5,827 -1.2 Ho
Slide 42: EBIT by business area (€mn)
EBIT by business area (€mn) +3.5% 2,519 2,608 82 n.m. 357 346 -3.1% Other1 835 -11.4% 942 EGP Iberia & Latam 193 -16.5% International 231 I&N Market 702 -2.2% G&EM 718 168 >100 81 282 +44.6% 195 -5 1Q13 1Q14 restated Enel Group Investor Relations 1. Including Services & Holding, Engineering & Resear
Slide 43: 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 44: Contact us
Contact us Investor Relations Team (investor.relations@enel.com) • Luca Torchia +39 06 8305 3437 Head of IR • Elisabetta Ghezzi +39 06 8305 2708 IR Coordination and Outbound communication • Marco Donati +39 06 8305 9252 Inbound communication • Matteo Cavadini +39 06 8305 2326 Staff • Federica Dori +