Enel Spa · MIL:ENEL
Enel Spa — Investor Day (March 2015)
105 slides from Enel Spa's investor day presentation, Mar 19, 2015
Slide 1: Investor Day 2015-19 Strategic Plan
2015 Investor day 2015-19 Strategic Plan New foundations for growth March 19, 2015
Slide 2: Agenda
2015 Investor day Agenda Enel Group Investor Relations 2014 main developments Francesco Starace CEO FY 2014 results Alberto De Paoli CFO 2015-2019 strategic plan Francesco Starace CEO 2015-2019 key financial figures Alberto De Paoli CFO Closing remarks Francesco Starace CEO 1
Slide 3: Opening remarks
2015 Investor day Opening remarks Enel Group Investor Relations Strong player in all technologies and across many geographies New organizational structure implemented to address industry challenges Management actions to address group complexity and unlock value A new strategy to drive increased retu
Slide 4: 2014 main developments: Highlights
2014 main developments Highlights Enel Group Investor Relations New Group organization established Targeted disposals achieved Financial targets delivered Paving the way for a new strategic plan 3
Slide 5: New Group organization established
2014 main developments New Group organization established Enel Group Investor Relations Challenges Solutions implemented Structurally integrated group with Complex organization focus on synergies Multiple decision making centers for Global business lines capital allocation Latam - Iberia different s
Slide 6: New Group organization: Regions and Global Business Lines
2014 main developments New Group organization established Enel Group Investor Relations Global Business Lines Global Global Renewable Global Upstream Infrastructures Generation Energies Trading Gas & Networks Italy Customers Best practices Local stakeholders implementation Iberia Regions Reg
Slide 7: New Group organization: ownership structure
2014 main developments New Group organization established Enel Group Investor Relations Enel Enel 100% 100% Enel Iberoamérica Enel Iberoamérica 92.06% Endesa 70.14% 60.62%1 100% Enel Latinoamerica 20.3% Endesa Enersis 40.32% Enersis Unlisted companies Listed companies Structure in line with market f
Slide 8: Targeted disposals achieved
2014 main developments Targeted disposals achieved Enel Group Investor Relations 2014 Disposals (€bn) Minorities buy-out and other operations (€bn) Sale of 22% Endesa 3.1 Minorities buy-out Latam -0.6 Renewables 0.5 4.8% of Enersis1 -0.7 Other assets 0.3 Extraordinary dividend Endesa releverage -0.
Slide 9: Financial targets delivered
2014 main developments Financial targets delivered Enel Group Investor Relations Actual 2014 Targets Recurring EBITDA 15.5 €bn 15.5 €bn Net ordinary income 3 €bn 3 €bn Net debt 37.41 €bn 372 €bn Dividend per share 0.14 €/sh ≥ 0.13 €/sh Commitment met despite challenging market conditions 1. Excludin
Slide 10: Agenda
2015 Investor day Agenda Enel Group Investor Relations 2014 main developments Francesco Starace CEO FY 2014 results Alberto De Paoli CFO 2015-2019 strategic plan Francesco Starace CEO 2015-2019 key financial figures Alberto De Paoli CFO Closing remarks Francesco Starace CEO 9
Slide 11: Consolidated results (€mn)
FY 2014 results Consolidated results (€mn) Enel Group Investor Relations Revenues Recurring EBITDA1 -4% -2% 78,663 15,769 15,502 75,791 FY 2013 FY 2014 FY 2013 FY 2014 Group net ordinary income2 Net debt3 -4% -6% 3,119 39,706 2,994 37,383 FY 2013 FY 2014 FY 2013 FY 2014 1. Excluding capital gains an
Slide 12: Group recurring EBITDA (€mn)
FY 2014 results Group recurring EBITDA (€mn) Enel Group Investor Relations -1.7% +215 -34 -352 15,769 -89 +35 -42 15,502 2013 Italy1 Iberia Latam East Renewables H&S 2 2014 Europe 1. Generation&Energy Management (GEM), Market, Infrastructures and Networks 2. Holding and Services 11
Slide 13: Group recurring EBITDA analysis
FY 2014 results Group recurring EBITDA analysis (€mn) Enel Group Investor Relations By responsibility By business East Europe Latam Networks 1,204 3,091 ~47% 8% 20% Italy2 15.51 20% Iberia 15.5 6,173 40% 3,203 ~34% ~12% Renewables Generation3 12% ~7% Renewables 1,815 Retail Regulated and quasi-regul
Slide 14: From EBITDA to Group net income
FY 2014 results From EBITDA to Group net income (€mn) Enel Group Investor Relations 15,757 -6,243 -6,427 Goodwill imp. 3,087 -3,165 -891 +850 -255 517 1 Reported D&A Impairment EBIT Net financial Income taxes Minorities Group net EBITDA expenses2 Income 1. Including accruals to bad debt provisions 2
Slide 15: From Net Income to Net Ordinary Income
FY 2014 results From Net Income to Net Ordinary Income (€mn) Enel Group Investor Relations 1 +4,062 -1,392 East 2,142 Europe -193 2,994 Generation Italy 1,460 Hydro Aysen 180 EGP 162 517 Other 118 Group net Impairment on Taxes: Capital gain Group net income net income extraordinary ordinary items in
Slide 16: Capex (€bn)
FY 2014 results Capex1 (€bn) Enel Group Investor Relations By activity2 By business By region Growth Networks 3.1 2.5 Iberia 37% Latam 46% 15% 38% 6.7 6.7 6.7 33% Generation 27% 54% 25% 2.2 Renewables Italy 14% 1.7 4% East Europe 3% 2% 2% Maintenance FY 2013 capex: Other North 3.6 • 60% Maintenance
Slide 17: Net free cash flow (€mn)
FY 2014 results Net free cash flow (€mn) Enel Group Investor Relations 15,502 - 1,974 +506 -1,396 - 2,730 9,908 - 6,701 Net Capex 6,038 3,207 -2,068 1,139 2 3 Recurring Provisions 1 Working Income Financial FFO Gross capex Free Net dividend Net free EBITDA capital taxes expenses cash paid cash cha
Slide 18: Net debt evolution (€mn)
FY 2014 results Net debt evolution (€mn) Enel Group Investor Relations -2,323(1) Dec 31, 2014 on Dec 31, Extraordinary Dec 31, Asset held continuing 2013 Net free cash flow activities FX effect 2014 for sale operations 37,383 +1,664 -1,100 38,003 +620 39,706 +1,139 Net debt/EBITDA Net debt/EBITDA ~
Slide 19: Agenda
2015 Investor day Agenda Enel Group Investor Relations 2014 main developments Francesco Starace CEO FY 2014 results Alberto De Paoli CFO 2015-2019 strategic plan Francesco Starace CEO 2015-2019 key financial figures Alberto De Paoli CFO Closing remarks Francesco Starace CEO 18
Slide 20: Enel today
2015-2019 strategic plan Enel today Enel Group Investor Relations Leading Leading retail Leading Balanced network business renewable generation operator operator portfolio 61 mn end users 56 mn power 9.6 GW installed 86 GW installed customers 37 mn smart meters Renewables 40 €bn RAB 5 mn gas Hydro1
Slide 21: Enel today: global presence
2015-2019 strategic plan Enel today1 Enel Group Investor Relations Europe Capacity: 66.5 GW Russia End users: 45.8 mn Capacity: 9.1 GW North America Capacity: 2.1 GW Mexico & Central America Capacity: 0.8GW Latin America Africa Capacity: 17.4 GW Capacity: 0.1 GW End users: 14.4 mn Countries of prese
Slide 22: Key global themes in the utility sector
2015-2019 strategic plan Key global themes in the utility sector Enel Group Investor Relations Capex driven towards infrastructure Demand growth in emerging countries expansion and upgrade Grid digital transformation Technology evolution in mature countries and new business models in customer intera
Slide 23: Key global themes: emerging countries
2015-2019 strategic plan Key global themes in the utility sector: emerging Enel Group countries Investor Relations Key growth drivers Enel positioning1 Countries of Countries of Areas under presence interest screening2 Electricity consumption per capita expected to increase by 30% by 2030 6.3 bn peo
Slide 24: Key global themes: mature countries
2015-2019 strategic plan Key global themes in the industry: mature countries Enel Group Investor Relations New business opportunities Enel positioning Large scale innovation in infrastructure (storage, electric vehicles, smart grids) Market integration through storage diffusion Active customer and n
Slide 25: Key global themes: renewables business
2015-2019 strategic plan Key global themes in the industry: renewables Enel Group business Investor Relations World renewables capacity1 (GW) Enel positioning Europe 5.8 GW in operation +190% 0.1 GW in execution 4.0 GW pipeline 1,930 North America 2.1 GW in operation 0.4 GW in execution 5.1 GW pipel
Slide 26: Key pillars
2015-2019 strategic plan Key pillars Enel Group Investor Relations 1 Operational efficiency 2 Industrial growth 3 Active portfolio management 4 Shareholder remuneration 25
Slide 27: Operational efficiency (€bn)
2015-2019 strategic plan Operational efficiency (€bn) Enel Group Investor Relations -7% Opex1 9.9 3 3 9.2 9.2 Cash costs Leverage on new organizational structure: integration and technology -8% sharing 13.5 2014 2016 2019 12.4 12.2 -10% Maintenance capex2 3.6 3.2 3 2014 2016 2019 3 Distribution and
Slide 28: Operational efficiency: focus on opex
2015-2019 strategic plan Operational efficiency: focus on opex1 Enel Group Investor Relations Networks • Network digitalization -12% €/end user • Centralized planning 58.5 51.7 • Workforce management using mobile devices • Leverage global procurement 2014 2019 -8% k€/MW Renewables • Economies of sca
Slide 29: Operational efficiency: focus on maintenance capex
2015-2019 strategic plan Operational efficiency: focus on maintenance Enel Group capex (€bn) Investor Relations Conventional Generation -14% 4.4 Maintenance capex1 -9% 3.8 17.32 Previous New 15.7 Networks3 -11% 11.0 Previous Plan New Plan 2014-18 2015-19 9.8 Previous New Optimizing maintenance capex
Slide 30: Key pillars
2015-2019 strategic plan Key pillars Enel Group Investor Relations 1 Operational efficiency 2 Industrial growth 3 Active portfolio management 4 Shareholder remuneration 29
Slide 31: Industrial growth: main criteria
2015-2019 strategic plan Industrial growth: main criteria Enel Group Investor Relations Decreasing business risk profile: no merchant exposure Increasing optionality based on project size and diversification Significant flexibility in total spending Average time to EBITDA less than 2 years and high
Slide 32: Industrial growth (€bn)
2015-2019 strategic plan Industrial growth (€bn) Enel Group Investor Relations Capex plan1 New Plan Maintenance Growth 34.0 46% 34.0 54% 15.7 18.3 29.7 +48% 18.3 12.4 2 Previous Plan -9% 17.3 15.7 Maintenance 17.3 58% 29.7 2 Previous plan 2014-18 New Plan 2015-19 42% Growth Maintenance Growth 12.4 +
Slide 33: Industrial growth: capex by business and geography
2015-2019 strategic plan Industrial growth (€bn) Enel Group Investor Relations Growth capex by Business1 Growth capex by Geography1 Renewables Italy Latam 18% Networks 48% 30% RoW3 49% 18.3 9% 18.3 11% Iberia 20% 7% 6% Generation 2% North Rest of Retail America Europe Spread over WACC min 200 bps Re
Slide 34: Industrial growth: EBITDA (€bn)
2015-2019 strategic plan Industrial growth: EBITDA (€bn) Enel Group Investor Relations 90% of additional EBITDA in Additional growth regulated and quasi Growth EBITDA EBITDA by business regulated activities (cumulative 2015-19) Renewables 6.7 ~ 1 €bn EBITDA growth at 2016 from projects under 47% Net
Slide 35: Industrial growth
2015-2019 Strategic Plan Industrial growth Enel Group Investor Relations Networks Retail Renewables Conventional generation +3.6 mn end users +4.5 mn new customers +7.1 GW +720 MW in Latam +11 mn smart meters in power & gas free 0.7GW under construction at 2019 market Total 2019 Capacity: 16 GW3 Tot
Slide 36: Industrial growth: networks
2015-2019 strategic plan Industrial growth: networks (€bn) Enel Group Investor Relations Stable returns over 40 €bn Growth capex1 by region Growth capex1 by project RAB Commercial losses Latam +11 mn smart meters Smart Meters installed 6% 17% Latam Strong focus on new Italy 37% 37% 26% 11% Smart Gri
Slide 37: Industrial growth: retail
2015-2019 strategic plan Industrial growth: retail Enel Group Investor Relations Focus on free market Innovation of new energy Power customers (mn) Gas customers (mn) service offerings +19% +21% Iberia 20.0 Italy 5.7 Digitalization, big data as 16.8 4.7 enabler of new home 1.7 products and services
Slide 38: Industrial growth: retail, new energy services
2015-2019 strategic plan Industrial growth: retail Enel Group Investor Relations Focus on new energy services New Energy Services New Energy services EBITDA1 (€mn) commodity related & energy efficiency solutions ‘Simple’ products CAGR LED, electric vehicles, home devices +29% ‘Complex’ products Heat
Slide 39: Industrial growth: renewables
2015-2019 strategic plan Industrial growth: renewables Enel Group Investor Relations Leverage sector growth Growth capex 1 Additional capacity trends Rest of Rest of Brazil Latam Brazil Latam Predictable cash-flows Chile Chile Mexico Mexico 6% 47% 6% 38% Diversification reduces New 22% New risk prof
Slide 40: Industrial growth: conventional generation
2015-2019 strategic plan Industrial growth: conventional generation Enel Group Investor Relations 0.7 GW additional capacity Quimbo Los Condores under PPA regime Country: Colombia Country: Chile Technology: Large hydro Technology Hydro Capacity: 400 MW Capacity: 153 MW 0.7 GW under construction in E
Slide 41: Key pillars
2015-2019 strategic plan Key pillars Enel Group Investor Relations 1 Operational efficiency 2 Industrial growth 3 Active portfolio management 4 Shareholder remuneration 40
Slide 42: Active portfolio management
2015-2019 strategic plan Active portfolio management Enel Group Investor Relations All assets under ongoing review Capital recycling to drive higher returns Providing additional resources to fuel growth Consistency with the strategic plan ~5% of total group invested capital 41
Slide 43: Active portfolio management: ~2 €bn under execution
2015-2019 strategic plan Active portfolio management Enel Group Investor Relations ~ 2 €bn under execution Latam reorganization ~ 2 €bn already identified Further growth opportunities ~ 1€bn to be identified 5 €bn total capital recycle Cash neutral over plan period Net income accretion1 of ca. 200 €
Slide 44: Key pillars
2015-2019 strategic plan Key pillars Enel Group Investor Relations 1 Operational efficiency 2 Industrial growth 3 Active portfolio management 4 Shareholder remuneration 43
Slide 45: Shareholder remuneration
2015-2019 strategic plan Shareholder remuneration Enel Group Investor Relations Dividend policy Transition phase Actual DPS Minimum DPS (€/sh) (€/sh) 0.18 0.16 0.14 60% 65% 65% 50% 55% 2015 2016 2017 2018 2019 2014 2015 2016 Accelerating returns Short-term certainty 44
Slide 46: Agenda
2015 Investor day Agenda Enel Group Investor Relations 2014 main developments Francesco Starace CEO FY 2014 results Alberto De Paoli CFO 2015-2019 strategic plan Francesco Starace CEO 2015-2019 key financial figures Alberto De Paoli CFO Closing remarks Francesco Starace CEO 45
Slide 47: 2015-2019 key financial figures: Introduction
2015-2019 key financial figures Introduction Enel Group Investor Relations 1 EBITDA and Net income evolution 2 Financial plan and strategy 3 Focus on cash flow generation 46
Slide 48: EBITDA evolution (€bn)
2015-2019 key financial figures EBITDA evolution (€bn) Enel Group Investor Relations +10% ~+1 ~-0.7 ~+2.4 ~-0.5 ~-0.7 ~17 15.5 FY 2014 Growth Efficiency Regulatory Scenario Disposals FY 2019E 47
Slide 49: EBITDA evolution by business and region
2015-2019 key financial figures EBITDA evolution (€bn) Enel Group Investor Relations 2014 2019 Italy Iberia 20% 20% 25% Latam 21% East Europe 8% ~171 4% 15.51 Renewables 12% 15% 40% 35% 47% 45% Networks Renewables ~70% Retail ~75% Regulated and 15.51 ~171 Regulated and Generation2 quasi-regulated 34
Slide 50: Net income evolution (€bn)
2015-2019 key financial figures Net income evolution (€bn) Enel Group Investor Relations > +35% ~+0.7 ~-0.3 ~-0.9 ~+2.4 ~- 0.6 ~-0.2 >4.1 3.0 Ordinary net EBITDA Financial D&A Income tax ∆ Minorities Disposals Ordinary net income 2014 expenses income 2019E 49
Slide 51: Financial plan and strategy
2015-2019 key financial figures Financial plan and strategy Enel Group Investor Relations Actions completed Further actions Further repayment of debt at maturity Repayment of 4.3 €bn debt at maturity with excess cash Liability management Further liability management actions Bond Tender/Exchange (~2.
Slide 52: Financial plan and strategy: debt and financial expenses
2015-2019 key financial figures Financial plan and strategy Enel Group Investor Relations Gross and Net Debt (€bn) Net Financial expenses on Debt (€bn) -10.3 -20%1 6.5% 6.0% 57.0 5.1% 5.4% 51.8 49.2 13.1 46.7 5.0% 5.0% 8.1 6.1 4.5 5.7 2.8 6.5 4.5 4.7 4.0% 2.6 2.5 2.3 3.0% 37.4 39.2 38.6 36.3 2.0% 1.
Slide 53: Growth plan funding (€bn)
2015-2019 key financial figures Growth plan funding (€bn) Enel Group Investor Relations 18.3 ~6 ~1.5 25% self-financing1 ~1.5 Efficiencies on maintenance capex ~2.52 Efficiencies on opex 12.4 Savings on financial ~12 expenses Growth capex Growth Additional previous capex new Investments plan plan Ad
Slide 54: Cash flow generation (€bn)
2015-2019 key financial figures Cash flow generation (€bn) Enel Group Investor Relations ~79 ~5 ~1.5 ~11 ~12 ~49.5 ~16 ~33.5 ~18 ~15.5 ~14 ~1.5 Recurring ∆ Provisions 1∆ NWC and Income Financial FFO Maintenence FFO after Growth FCF Net Net FCF EBITDA other taxes paid expenses capex 2 maint. capex 2
Slide 55: Agenda
2015 Investor day Agenda Enel Group Investor Relations 2014 main developments Francesco Starace CEO FY 2014 results Alberto De Paoli CFO 2015-2019 strategic plan Francesco Starace CEO 2015-2019 key financial figures Alberto De Paoli CFO Closing remarks Francesco Starace CEO 54
Slide 56: Closing remarks
2015 Investor day Closing remarks Enel Group Investor Relations Plan delivers Efficiency – ~5 €bn over the plan Free cash flow generation of 15.5 €bn Growth EBITDA of 2.4 €bn in 2019: +10% vs 2014 Attractive return to shareholders – Target payout 65% 55
Slide 57: Closing remarks: targets
2015 Investor day Closing remarks Enel Group Investor Relations CAGR (%) 2015 2016 2017 2015-19 Recurring EBITDA ~15.0 ~15.0 ~15.6 ~+3% Net ordinary income ~3.0 ~ 3.1 ~3.4 ~+10% Minimun DPS 0.16 €/sh 0.18 €/sh ~+17% Pay-out 50% 55% 60% +7% FFO/Net Debt 21% 24% 27% ~+9% 56
Slide 58: 2015-19 Strategic plan annexes
2015-19 Strategic plan annexes 57
Slide 59: Assumptions: Commodities
Assumptions Commodities Enel Group Investor Relations Brent $/bbl Coal $/ton 75 69 84 60 74 63 2015 2016 2017 2015 2016 2017 Gas TTF €/MWh CO2 €/ton 11 22 9 21 7 19 2015 2016 2017 2015 2016 2017 58
Slide 60: Assumptions: Macroeconomics
Assumptions Macroeconomics Enel Group Investor Relations GDP Electricity demand (yoy) FX - €/$ 4.5% 4.6% 4.1% 3.4% 1.22 3.2% 1.9% 1.3% 1.1% 0.8% 1.17 1.0% 1.2% 0.6% 1.13 1.6% 1.8% 2.5% 2.0% 1.4% 1.8% 2015 2016 2017 2015 2016 2017 2015 2016 2017 Spain Italy Latam1 Spain Italy Latam2 Power Prices ITA
Slide 61: Focus on efficiency (€bn)
Strategic plan 2015-19 Focus on efficiency (€bn) Enel Group Investor Relations Opex evolution1 Opex by business CAGR -6.4% 3.8 2.7 Conventional generation +0.7 -0.2 -1.1 2014 2019 +0.5 -1% 3.6 3.4 9.9 Networks 9.7 -0.5 2014 2019 9.2 11.5% 1.2 Renewables 0.7 2014 2019 -2.6% 4.1 3.6 Retail, services a
Slide 62: Key global themes: demand growth
2015-2019 strategic plan Key global themes in the utility sector: demand growth Enel Group Investor Relations Increasing share of electricity on total World electricity demand (TWh) world energy consumption +8,000TWh Emerging countries 33,900 Mature countries 21,400 (’15-’30) 22% 24,500 13,400 +60%
Slide 63: Italian operations: targets
Strategic plan 2015-19: focus on divisions Italian operations: targets1 Enel Group Investor Relations Capex2 (€bn) EBITDA (€bn) ~5.93 ~5.63 ~1.83 ~1.83 ~1.63 ~5.23 ~0.2 ~0.1 ~0.1 ~1.2 ~1.3 ~1.3 ~0.3 ~0.2 ~0.2 ~0.8 ~0.6 ~0.9 ~1.3 ~1.4 ~1.3 ~3.7 ~3.4 ~3.4 2015 2016 2017 2015 2016 2017 Networks Convent
Slide 64: Iberia: targets
Strategic plan 2015-19: focus on divisions Iberia: targets1 Enel Group Investor Relations Capex2 (€bn) EBITDA (€bn) ~3.13 ~3.23 ~3.13 ~1.13 ~1.8 ~1.7 ~1.8 ~1.03 ~1.13 ~0.6 ~0.7 ~0.7 ~1.3 ~1.4 ~1.4 ~0.4 ~0.5 ~0.4 2015 2016 2017 2015 2016 2017 Conventional generation and Retail Networks 1. Gross of di
Slide 65: Latam: targets
Strategic plan 2015-19: focus on divisions Latam: targets1 Enel Group Investor Relations Capex2 (€bn) EBITDA (€bn) ~4.23 ~4.33 ~3.73 ~1.7 ~1.8 ~1.6 ~2.13 ~1.83 ~1.73 ~1.1 ~1.0 ~1.0 ~2.1 ~2.5 ~2.5 ~1.0 ~0.8 ~0.7 2015 2016 2017 2015 2016 2017 Conventional generation Networks 1. Gross of disposals 2. G
Slide 66: East Europe operations: targets
Strategic plan 2015-19: focus on divisions East Europe operations: targets1, 2 Enel Group Investor Relations Capex3 (€bn) EBITDA (€bn) ~0.6 ~0.6 ~0.5 ~0.3 ~0.3 ~0.3 2015 2016 2017 2015 2016 2017 1. Net of assets held for sale 2. Gross of disposals 3. Gross Capex 65
Slide 67: Renewables: targets
Strategic plan 2015-19: focus on divisions Renewables: targets1 Enel Group Investor Relations Capex2 (€bn) EBITDA (€bn) ~2.1 ~2.1 ~2.1 ~2.0 ~1.9 ~1.8 2015 2016 2017 2015 2016 2017 1. Net of disposals 2. Gross Capex 66
Slide 68: Capex plan (€bn)
Strategic plan 2015-19 Capex plan (€bn) Enel Group Investor Relations 34.0 2.6 7.8 6.7 7.0 6.4 0.8 6.4 6.4 0.7 0.6 0.4 0.4 0.4 31.4 6.0 7.0 6.4 6.0 6.0 6.0 2014 2015 2016 2017 2018 2019 2015-19 Contributions Net capex By business By country Italy 40% 45% Networks Latam 17% Iberia 28% Renewables 34.0
Slide 69: New CO2 reduction Target
Strategic plan 2015-19 New CO2 reduction Target Enel Group Investor Relations CO2 specific emissions performance and target of reduction (gCO2/kWheq.) 618 -32% -35% -15% 465 418 396 396 395 <380 Carbon Neutrality 1990 2007 2012 2013 2014 2020 2050 68
Slide 70: FY 2014 results annexes
FY 2014 results annexes Enel
Slide 71: From EBITDA to Net Income (€mn)
FY 2014 results From EBITDA to Net Income(€mn) Enel Group Investor Relations FY13 FY13 FY14 FY14 Reported % vs Ordinary2 % vs Reported Ordinary2 Restated1 Restated1 EBITDA 15,757 16,691 -5.6 15,502 15,769 -1.7 D&A (12,670) (6,951) (6,243) (5,973) EBIT 3,087 9,740 -68.3 9,259 9,796 -5.5 Net financial
Slide 72: Focus on taxes (€mn)
FY 2014 results Focus on taxes (€mn) Enel Group Investor Relations 2,222 +1,465 2,007 +747 +77 -366 -243 +1,392 -850 Income Taxes Tax credit on Impairment Ordinary Deferred Deferred Deferred Other Pro-forma 2014 extraordinary impact and taxes Taxes taxes - tax taxes - tax taxes 2014 items capital ga
Slide 73: Group reported EBITDA evolution (€mn)
FY 2014 results Group reported EBITDA evolution (€mn) Enel Group Investor Relations -5.6% 16,691 +79 +215 -29 -89 +8 -352 +158 -924 15,757 1,022 98 1,780 1,938 3,443 3,091 3,195 S&H 3,203 EGP 1,293 Latam 1,204 Iberia 4,008 I&N International I&N 3,979 6,223 5,958 Italian operations 866 Market Market
Slide 74: EBITDA evolution G&EM Italy
FY 2014 results: EBITDA evolution G&EM Italy (€mn) Enel Group Investor Relations +7.3% -19 1,163 +170 1,084 -72 FY13 Generation Gas Other2 FY14 restated1 margin margin 1. Due to the application of IFRS 11 2. Including non recurring item of +50 €mn remeasurement of fair value of SE Hydropower 73
Slide 75: EBITDA evolution Market Italy
FY 2014 results: EBITDA evolution Market Italy (€mn) Enel Group Investor Relations +24.8% +239 -24 1,081 866 FY13 Free Regulated FY14 restated market market 74
Slide 76: EBITDA evolution Infrastructure & Networks Italy
FY 2014 results: EBITDA evolution Infrastructure & Networks Italy (€mn) Enel Group Investor Relations -0.7% 4,008 -235 -103 +309 3,979 FY13 Energy Connection Other FY14 restated margin fees 75
Slide 77: EBITDA evolution International
FY 2014 results: EBITDA evolution International (€mn) Enel Group Investor Relations -6.9% -12.3% +80 1,373 -171 1,293 +10 +33 -41 1,204 399 358 289 Enel Russia +10 France, Belgium, EIH4 299 SEE3 Slovakia 708 537 -23 FY13 Other FY13 Slovakia SEE3 France, Enel Russia FY14 restated1 items2 restated1 Be
Slide 78: EBITDA evolution Iberia
FY 2014 results: EBITDA evolution Iberia1 (€mn) Enel Group Investor Relations +0.3% -95 +212 -109 3,195 3,203 FY13 Liberalized Regulated Other FY14 restated2 business business 1. Enel GAAP 77 2. Due to the application of IFRS 11
Slide 79: EBITDA evolution Latam
FY 2014 results: EBITDA evolution Latam1 (€mn) Enel Group Investor Relations -10.2% 3,443(2) -266 +28 +15 +68 +102 -294 Peru 3,091(3) 424 €mn Peru Colombia 432 €mn 1,071 €mn Colombia 1,097 €mn Chile 805 €mn Chile 759 €mn Brazil 841 €mn Brazil 787 €mn Argentina 313 €mn Argentina 32 €mn FY13 Argentina
Slide 80: EBITDA evolution Renewables
FY 2014 results: EBITDA evolution Renewables (€mn) Enel Group Investor Relations +8.9% +2.0% +123 +1,938 1,780 +6 +30 1,815 -1 246 276 203 202 North America Latin America 1,331 Europe 1,337 FY13 Europe Latin North FY14 Non FY14 restated1 America America Recurring recurring2 1. Due to the application
Slide 81: EBITDA evolution Other
FY 2014 results: EBITDA evolution Other1 (€mn) Enel Group Investor Relations n.s. +1,022 -42 -882 +98 FY13 Services Other FY14 1. Including Services & Holding, Engineering & Research, upstream gas and nuclear activities 80
Slide 82: Forward sales
FY 2014 results Forward sales Enel Group Investor Relations Italy Spain Latam 95% 75% 75% 65% 35% 5% 2015 2016 2015 2016 2015 2016 55.2 47.4 57.6 56.2 70.1 72.3 Hedged Average price €/MWh Unhedged 81
Slide 83: From Gross Debt to Net Debt (€mn)
Financial annexes: FY 2014 From Gross Debt to Net Debt (€mn) Enel Group Investor Relations 57,032 6,561 Short-term debt 8,377 -1,174 13,088 Tariff deficit 37,383 Long-term debt 48,655 Gross Debt 2014 Financial receivables Cash and cash equivalent Net Financial Position -10,611 FY13 58,047 (o.w. TD -
Slide 84: Gross debt maturity profile and structure
Financial annexes: FY 2014 Gross debt maturity profile and structure (FY 2014) Enel Group Investor Relations Debt maturity Interest rate composition Floating Maturity < 2017 23% 30% 70% 77% Fixed + Maturity Hedged > 2017 Currency composition1 Third party debt composition Other 2% East Europe 35% Ene
Slide 85: Debt Structure by Instrument 2014
Financial annexes: FY 2014 Debt Structure by Instrument 2014 Enel Group Investor Relations Third Parties view Eastern Debt by instrument Enel Spa EFI Italy Iberia Latam Renewables Europe Total & Other Bonds 19.65 19.91 - 0.15 3.82 - 0.27 43.80 Bank Loans - - 3.66 0.50 0.39 2.90 0.40 7.85 Tax Partner
Slide 86: Debt maturity coverage
Financial annexes Debt maturity coverage Enel Group Investor Relations ~26.5 ~25.8 Long term committed credit lines1 ~13.4 ~8.4 ~4.9 ~7.2 ~4.9 ~3.3 ~5.8 Short term Cash ~13.1 Long term ~5.1 FY 2014 < 12m 2016 2017 2018 2019 After 2019 1. Lines with maturities after December 2015 (including 9.4 €bn r
Slide 87: Balance sheet
FY 2014 Balance sheet Enel Group Investor Relations FY13 €mn restated FY14 % Net financial debt 39,706 37,383 -5.9 Shareholders’ equity 52,832 51,145 -3.2 Net capital employed 92,538 88,528 -4.3 86
Slide 88: Generation & Energy Management - Italy
FY 2014 Generation & Energy Management - Italy Enel Group Investor Relations FY13 €mn FY14 % restated Revenues 22,798 22,606 -0.8 EBITDA 1,084 1,163 +7.3 EBIT 493 (1,539) n.s. Capex 313 285 -8.9 Headcount 5,621 5,314 -5.5 87
Slide 89: Market - Italy
FY 2014 Market - Italy Enel Group Investor Relations FY13 €mn FY14 % restated Revenues 16,921 15,226 -10.0 EBITDA 866 1,081 +24.8 EBIT 362 455 +25.7 Capex 99 111 +12.1 Headcount 3,687 3,633 -1.5 88
Slide 90: Infrastructure & Network - Italy
FY 2014 Infrastructure & Network - Italy Enel Group Investor Relations FY13 €mn FY14 % restated Revenues 7,698 7,366 -4.3 EBITDA 4,008 3,979 -0.7 EBIT 3,028 2,943 -2.8 Capex 1,046 996 -4,8 Headcount 17,689 17,398 -1.6 89
Slide 91: International
FY 2014 International Enel Group Investor Relations FY13 €mn FY14 % restated Revenues 6,296 5,278 -16.2 EBITDA 1,293 1,204 -6.9 EBIT (23) (2,682) n.s. Capex 924 936 +1.3 Headcount 11,439 10,403 -9.1 90
Slide 92: Iberia
FY 2014 Iberia Enel Group Investor Relations FY13 €mn FY14 % restated Revenues 21,123 20,900 -1.1 EBITDA 3,195 3,203 +0.3 EBIT 1,382 1,240 -10.3 Capex 845 993 +17.5 Headcount 10,933 10,500 -4.0 91
Slide 93: Latam
FY 2014 Latam Enel Group Investor Relations FY13 €mn FY14 % restated Revenues 9,551 9,647 +1.0 EBITDA 3,443 3,091 -10.2 EBIT 2,385 1,549 -35,1 Capex 1,315 1,609 +22.4 Headcount 11,608 12,301 +6.0 92
Slide 94: Renewables
FY 2014 Renewables Enel Group Investor Relations FY13 €mn FY14 % restated Revenues 2,769 2,921 +5.5 EBITDA 1,780 1,938 +8.9 EBIT 1,205 1,124 -6.7 Capex 1,294 1,658 +28.1 Headcount 3,469 3,609 +4.0 93
Slide 95: Other
FY 2014 Other1 Enel Group Investor Relations FY13 €mn FY14 % restated Revenues2 2,885 2,013 -30.2 Holding 276 246 -10.9 Services 1,447 1,434 -0.9 Engineering & Research 313 347 +10.9 Upstream 967 84 -91.3 EBITDA3 1,022 98 -90.4 Holding (65) (80) -23.1 Services 137 105 -22.8 Engineering & Research 14
Slide 96: Other - Continued
FY 2014 Other1 - Continued Enel Group Investor Relations FY13 €mn FY14 % restated EBIT2 908 (3) -100.3 Holding (74) (92) -24.3 Services & other 37 21 -41.7 Engineering & Research 9 8 -11.1 Upstream 936 60 -93.6 Capex 84 113 +34.5 Holding 13 11 -15.4 Services & other 60 88 +46.7 Engineering & Researc
Slide 97: Capex by business area (€mn)
FY 2014 Capex by business area (€mn)1 Enel Group Investor Relations +13.2% 6,701 5,920 113 +34.5% 84 S&H 2 1,658 +28.1% EGP 1,294 Latam 1,609 +22.4% Iberia 1,315 International I&N 845 993 +17.5% Market 924 936 +1.3% GEM 1,046 996 -4.8% 99 111 +12.1% 313 285 -8.9% FY13 FY14 1. Continuing operations,
Slide 98: Operational annexes
Operational annexes Enel
Slide 99: Production mix (TWh)
Operational annexes Production mix (TWh) +0.8% Enel Group Investor Relations 71.2 71.8 0.7% 0.4% 10.1% 8.6% Group production mix 47.3% 49.2% Italy +0.5% 9.4% 9.7% 281.8 283.1 32.5% 32.1% 10.4% 10.5% 14.0% 13.2% FY13 FY14 restated 28.8% 29.0% +0.3% 14.4% 13.8% 6.6% 7.3% 210.6 211.3 26.2% 13.7% 13.9%
Slide 100: Group total net installed capacity
FY2014 Group total net installed capacity1 Breakdown by source and location Enel Group Investor Relations MW Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 12,698 1,662 - 6,486 5,199 10,778 36,823 Iberia 4,764 1,793 3,318 5,306 5,445 2,923 23,549 Centrel 2,329 28 1,814 797 - - 4,96
Slide 101: Group total net production
FY2014 Group total net production1 Breakdown by source and location Enel Group Investor Relations GWh Hydro Other Nuclear Coal CCGT Oil & gas TOTAL ren. ST/OCGT Italy 23,058 6,928 - 35,362 6,198 278 71,824 Iberia 8,899 4,238 24,762 24,365 5,538 6,238 74,040 Centrel 4,225 52 14,420 1,853 - - 20,550 S
Slide 102: Enel Green Power net installed capacity
FY2014 Enel Green Power net installed capacity: Breakdown by source and location Enel Group Investor Relations MW Hydro Geothermal Wind Other TOTAL Europe 1,574 761 3,202 298 5,835 Latam 732 - 829 137 1,698 North America 318 72 1,665 28 2,083 Other countries (South Africa) - - - 10 10 TOTAL 2,624 83
Slide 103: Enel Green Power net production
FY2014 Enel Green Power net production Breakdown by source and location Enel Group Investor Relations GWh Hydro Geothermal Wind Other TOTAL Europe 7,352 5,547 7,349 414 20,662 Latam 3,187 - 1,238 29 4,454 North America 913 407 5,309 45 6,674 Other countries - - - 8 8 (South Africa) TOTAL 11,452 5,95
Slide 104: Contact us
Contact us Enel Group Investor Relations Investor Relations Team (investor.relations@enel.com) Tel. +39 06 8305 7975 Visit our website at: www.enel.com (Investor Relations) 103
Slide 105: Disclaimer
Disclaimer Enel Group Investor Relations 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 a