Enel SpA · MIL:ENEL
Enel SpA — 9M 2015 Earnings Presentation
57 slides from Enel SpA's earnings presentation, Nov 13, 2015
Slide 1: 9M 2015 Results
9M 2015 Results November, 13th 2015
Slide 2: Highlights of the period
9M 2015 results Highlights of the period Enel Group Investor Relations Resilient EBITDA driven by Iberia (+12% YoY) and Latam (+13% YoY) Renewables: +1GW additional capacity and positive EBITDA contribution Efficiencies plan on track FFO improvement supporting higher growth capex Progress on active
Slide 3: Market context in the period
9M 2015 results Market context in the period Electricity demand Enel Group 9M14 9M15 Investor Relations 2.5% 3.2% 3.2% 1.9% 0.8% -0.9% -0.7% -3.0% Italy Spain Latam 1 East Europe2 Spot power prices €/MWh Local currencies vs euro (%)3 +5% +32% -11% -17% -56% 218.6 -3% 9M14 9M15 109.0 90.9 97.5 95.3 4
Slide 4: Operational highlights
9M 2015 results Operational highlights Enel Group Installed capacity (GW) Net production (TWh) Investor Relations -7% +1.5% 96.1 89.5 211 214 Conventional 86.5 78.9 generation +10% Load factor ~34% ~37% Renewables 9.6 10.6 FY2014 9M 2015 9M 2014 9M 2015 Electricity distributed (TWh) Number of custom
Slide 5: Financial highlights (€mn)
9M 2015 results Financial highlights (€mn) Revenues EBITDA Enel Group Investor Relations +4% +5% 11,593 12,161 54,075 55,998 9M 2014 9M 2015 9M 2014 9M 2015 Group net income Net debt +7% +5% 2,089 1,947 1 39.357 2 37,383 9M 2014 9M 2015 FY 2014 9M 2015 1. Net of assets held for sale (-620€mn mainly
Slide 6: Operational highlights - Generation
9M 2015 results Operational highlights - Generation Enel Group Investor Relations Generation capacity (GW) Group production (TWh) -7% +2% 210.5 +0.8 +6.4 -5.7 +1.7 213.7 96.1 0.0 -6.6 -1.0 +1.0 89.5 88.8 88.8 FY 2014 Nuclear Thermal Hydro1 Other 9M 2015 9M 2014 Nuclear Thermal Hydro 1 Other 9M 2015
Slide 7: Operational highlights - Distribution
9M 2015 results Operational highlights - Distribution Enel Group Investor Relations Electricity distributed (TWh) Distribution end users (mn) +2% +1% +0.9 +0.5 313.5 +1.9 +0.1 +1.9 60.7 +0.4 61.2 308.3 88.8 9M 2014 Italy Iberia Latam Eastern 9M 2015 9M 2014 Latam RoW 9M 2015 Europe 6
Slide 8: Reported and ordinary EBITDA evolution (€mn)
9M 2015 results Reported and ordinary EBITDA evolution (€mn) Enel Group Investor Relations +4% -1% 132 11,338 11,888 273 12,161 11,593 11,461 550 9M 2014 Extraordinary 9M 2014 ordinary 9M 2015 pro- Release of 9M 2015 ordinary Extraordinary 9M 2015 reported items1 forma provisions 2 items 3 reported
Slide 9: Group ordinary EBITDA (€mn)
9M 2015 results Group ordinary EBITDA (€mn) Enel Group Investor Relations +4% -1% 11,461 -87 +26 11,338 +550 11,888 +192 -276 +22 Ordinary 9M Global Global Renewables Retail Other 2 9M 2015 pro- Release of Ordinary 2014 Infrastructure & Generation forma provisions 3 9M2015 Networks & Trading 1 1. Ex
Slide 10: Group ordinary EBITDA (€mn)
9M 2015 results Group ordinary EBITDA (€mn) Enel Group Investor Relations +4% -1% 11,461 -468 +266 -208 +26 -41 11,338 +550 11,888 +302 9M 2014 Italy Iberia Latam East Renewables Other 9M 2015 pro- Release of 9M 2015 Europe 1 forma provisions 2 1. Excluding release of nuclear provision in Slokenske
Slide 11: Operational efficiency: opex (€mn)
9M 2015 results Operational efficiency: opex (€mn) Enel Group -8% Investor Relations -2% 6,579 6,675 6,570 +96 -501 6,069 3,447 3,447 3,440 Personnel costs 3,456 External costs 3,581 3,676 3,625 3,108 Capitalized costs -448 -448 -495 -495 1 1 9M 2014 One-offs 9M 2014 9M 2015 One-offs 9M 2015 Reporte
Slide 12: Operational efficiency: cash cost (€mn)
9M 2015 results Operational efficiency: cash cost (€mn) Maintenance capex1 Enel Group Investor Relations +4% +10% 1,959 2,036 Cash Cost +2% 0% 9M 2014 9M 2015 -97 -130 +198 8,635 8,606 +8% -3% -4% Opex2 -2% -1% 6,675 6,570 9M 2014 1Q15 Adj. 2Q15 Adj. 3Q15 Adj. 9M 2015 Adjusted Adjusted 9M 2014 9M 20
Slide 13: Focus on operational efficiency (€bn)
9M 2015 results Focus on operational efficiency (€bn) Enel Group Investor Relations Opex evolution1 Opex by business 58.4 -2% 57.4 -2% Networks €/client 0.06 -0.21 FY 2014 LTM 0.04 76.1 -3% 74.9 6.68 Renewables k€/MW 6.57 FY 2014 LTM 44.6 42.6 Conventional -5% k€/MW Generation FY 2014 LTM 24% -1% 23
Slide 14: From Net Income to Net Ordinary Income (€mn)
9M 2015 results From Net Income to Net Ordinary Income (€mn) Enel Group Investor Relations +781 -229 -283 EGP Romania 91 2,641 Enel Russia 417 2,358 2,089 SE 273 Reported Group Impairment on net Extraordinary Group net Release of Pro-forma Group net income 1 items 2 ordinary provisions 3 net ordinar
Slide 15: From ordinary EBITDA to Net ordinary Income (€mn)
9M 2015 results From ordinary EBITDA to Net ordinary Income(€mn) Enel Group Investor Relations 11,888 -4,248 7,640 -1,962 -1,745 -1,292 2,641 -283 2,358 Ordinary EBITDA D&A EBIT Net financial Income taxes Minorities Group net Release of Pro-forma Group expenses and ordinary Income provisions net ord
Slide 16: Debt and financial expenses
9M 2015 results Debt and financial expenses Enel Group Investor Relations Gross and Net Debt (€mn) Net Financial expenses on debt (€mn) 6.5% -7% -5% 6.0% 4.9% 4.9% 5.5% 5.0% 57,032 52,568 4.5% 13,088 8,310 2,065 1,972 4.0% 6,561 4,901 3.5% Net debt 3.0% Financial receivables 37,383 39,357 Cash 2.5%
Slide 17: Net ordinary free cash flow (€mn)
9M 2015 results Net ordinary free cash flow (€mn) Enel Group Investor Relations 11,888 - 1,388 - 2,256 -781 -2,334 5,128 -5,081 48 -2,121 -2,073 Ordinary Provisions 1 Working Income taxes Financial FFO 2 Capex Free Net dividend Net free EBITDA capital change paid expenses and cash paid cash and ot
Slide 18: Net debt evolution (€mn)
9M 2015 results Net debt evolution (€mn) Enel Group Investor Relations -1,9742 -1,8403 Sept 30, 2015 on Dec 31, Extraordinary Sept 30, Asset held continuing 2014 Net free cash flow activities 2015 Fx effect for sale 4 operations 37,383 620 1 -38,003 -39.843 -39.357 -2,073 +233 -754 +1,240 Net debt r
Slide 19: Closing remarks
9M 2015 results Closing remarks Enel Group Investor Relations Latam restructuring: EGMs to be held on the 18th of December Resilient EBITDA Accelerating on efficiency programme Increasing FFO and Net income Well on track to deliver debt target 2015 targets confirmed 18
Slide 20: Financial and operational annexes
Financial and operational annexes
Slide 21: Market context in the period
9M 2015 results Market context in the period Enel Group Investor Relations Brent $/bbl Coal $/ton CO2 €/ton 76 7.5 7 107 59 63 6.0 56 60 9M14 9M15 FY15E 9M14 9M15 FY15E 9M14 9M15 FY15E Average FX USD/€ Average FX CLP/€ Average FX BRL/€ 1.36 761 3.5 1.12 1.13 718 3.1 3.03 714 9M14 9M15 FY15E 9M14 9M1
Slide 22: Forward sales
9M 2015 results Forward sales Enel Group Investor Relations Italy Spain Latam 100% 100% 95% 85% 60% 40% 2015 2016 2015 2016 2015 2016 54 48 60 56 70 67 Hedged Average price €/MWh Unhedged 21
Slide 23: Operational efficiency: focus on maintenance capex (€mn)
9M 2015 results Operational efficiency: focus on maintenance capex (€mn) Enel Group Investor Relations Conventional Generation +27% +4% Maintenance capex 578 +10% 556 +4% 1,959 2,036 9M 2014 9M 2015 Networks +5% +4% 1,159 1,208 9M 2014 9M 2015 1H2015 (% change YoY) 9M 2014 9M 2015 Significant improv
Slide 24: Capex (€mn)
9M 2015 results Capex1 (€mn) Enel Group Investor Relations By activity By business By region Growth Networks 3.044 1.808 Iberia 36% 47% Latam 12% 60% 5.081 5.081 5.081 40% Generation2 28% 33% 22% 1.415 Renewables Italy 11%East Europe2 1.700 4% 4% Maintenance 2% 1% Other North Retail Other America 2.
Slide 25: Gross debt maturity profile and structure (€bln)
Financial annexes: 9M 2015 Gross debt maturity profile and structure (€bln) Enel Group Investor Relations Debt maturity Interest rate composition Floating Maturity 21% < 2017 23% 77% 79% Fixed + Maturity > 2017 Hedged Currency composition1 Third party debt composition Other Enel Latam 2% East Europe
Slide 26: Group ordinary EBITDA analysis (€mn)
9M 2015 results Group ordinary EBITDA analysis (€mn) Enel Group Investor Relations By responsibility By business East Europe Latam Networks 1,125 2,292 45% 9% 19% Italy2 11,8881 23% Iberia 11,8881 4,417 37% 2,797 32% 11% Renewables 11% Generation 12% Renewables 1,338 Retail4 Regulated and quasi-regu
Slide 27: From EBITDA to Net Income (€mn)
9M 2015 results From EBITDA to Net Income(€mn) Enel Group Investor Relations 9M14 9M14 9M15 9M15 Reported Reported % vs Ordinary2 % vs Ordinary2 Restated1 Restated1 EBITDA 12,161 11,593 +4.9 11,888 11,461 +3.7 D&A (5,853) (4,453) (4,248) (4,407) EBIT 6,308 7,140 -11.7 7,640 7,054 +8.3 Net financial
Slide 28: EBITDA Global Infrastructure & Networks (€mn)
9M 2015 results EBITDA Global Infrastructure & Networks (€mn) Enel Group Investor Relations -2% 5,408 -321 +195 +14 5,321 +25 Italy Italy 3,047€mn 2,726 €mn Iberia Iberia 1,337€mn 1,362 €mn Latam Latam 838€mn 1,033 €mn East Europe East Europe 186 €mn 200 €mn 9M14 Italy Iberia Latam East Europe 9M15
Slide 29: EBITDA Global Generation & Trading (€mn)
9M 2015 results EBITDA Global Generation & Trading (€mn) Enel Group Investor Relations +27% +330 3,956 +706 +76 3,123 -279 Italy 747 €mn Italy 1,026 €mn Iberia Iberia 280 €mn 986 €mn Latam Latam 1,236 €mn 1,312 €mn East Europe East Europe 581 €mn 911 €mn 9M14 Italy Iberia Latam East Europe 9M15 28
Slide 30: EBITDA Renewables (€mn)
9M 2015 results EBITDA Renewables (€mn) Enel Group Investor Relations +12% +64 1,470 -54 +148 1,312 257 193 126 274 North America Latin America 993 Europe 939 9M14 Europe Latin North America 9M15 America 29
Slide 31: EBITDA Italy (€mn)
9M 2015 results EBITDA Italy (€mn) Enel Group Investor Relations -8% 4,935 -279 -321 +180 +43 4,558 Generation Generation 1,026 €mn 747 €mn Networks Networks 3,047 €mn 2,726 €mn Retail Retail 791 €mn 971 €mn Other Other 71 €mn 114 €mn 9M14 Generation & Networks Retail Services 9M15 Trading 30
Slide 32: EBITDA Latam (€mn)
9M 2015 results EBITDA Latam (€mn) Enel Group +13% Investor Relations +195 -5 2,292 2,026 +76 Peru Peru 359 €mn 312 €mn Colombia 767 €mn Colombia 858 €mn Chile Chile 606 €mn 444 €mn Brazil 386 €mn Brazil 466 €mn Argentina 174 €mn Argentina -54 €mn 9M14 Generation & Networks Other 9M15 Trading 31
Slide 33: EBITDA Iberia (€mn)
9M 2015 results EBITDA Iberia(€mn) Enel Group +12% Investor Relations +706 +25 -457 +28 2,797 2,495 Generation Generation 986 €mn 280 €mn Distribution Distribution 1,337 €mn 1,362 €mn Retail Retail 426 €mn 883 €mn Other -5 €mn Other 23 €mn 9M14 Generation & Networks Retail Other 9M15 Trading 32
Slide 34: EBITDA East Europe (€mn)
9M 2015 results EBITDA East Europe (€mn) Enel Group Investor Relations +44% 783 1,125 +490 +18 Russia -160 119 €mn -6 Russia Romania 279 €mn 221 €mn Romania 227 €mn Slovakia 789 €mn Slovakia 299 €mn Other Other -22 €mn -4 €mn 9M14 Russia Romania Slovakia Other 9M15 33
Slide 35: EBITDA matrix (€mn)
9M 2015 results EBITDA matrix (€mn) Global Generation & Global Infrastructure & Enel Group Renewables Retail Services & Other Investor TOTRelations Trading Networks 9M15 9M14 9M15 9M14 9M15 9M14 9M15 9M14 9M15 9M14 9M15 Italy 747 1,026 2,726 3,047 - - 971 791 114 71 4,558 Iberia 986 280 1,362 1,337
Slide 36: Debt Structure by Instrument
Financial annexes: 9M 2015 Debt Structure by Instrument Enel Group Third Parties view Investor Relations Eastern Debt by instrument Enel Spa EFI Italy Iberia Latam Renewables Europe & Total Other Bonds 17.55 19.17 - 0.11 3.21 - 0.35 40.39 Bank Loans - - 3.43 0.92 0.34 2.67 0.32 7.68 Tax Partnership
Slide 37: Debt maturity coverage
Financial annexes: 9M 2015 Debt maturity coverage Enel Group Investor Relations ~27.2 ~21.8 Available committed ~13.5 credit lines ~8.1 ~7.0 ~2.7 ~0.6 ~4.7 ~5.0 Cash ~8.3 Short term Long term ~5.4 3Q 2015 < 3Q 2016 3Q 2016 2017 2018 2019 After 2019 36
Slide 38: Balance sheet
9M 2015 Balance sheet Enel Group Investor Relations FY14 €mn 9M15 % restated Net financial debt 39,357 37,383 5.3% Shareholders’ equity 51,275 51,145 0.3% Net capital employed 90,632 88,528 2.4% 37
Slide 39: Italy
9M 2015 Italy Enel Group Investor Relations Generation & Trading Infrastructure & Network Retail Other and Ellision TOTAL 9M14 9M14 9M14 9M14 9M14 €mn 9M15 % 9M15 % 9M15 % 9M15 % 9M15 % restated restated restated restated restated Revenues 16,843 15,237 10.5% 5,323 5,392 -1.3% 11,174 11,496 -2.8% -
Slide 40: Iberia
9M 2015 Iberia Enel Group Investor Relations Generation & Trading Infrastructure & Network Retail Other TOTAL 9M14 9M14 9M14 9M14 9M14 €mn 9M15 % 9M15 % 9M15 % 9M15 % 9M15 % restated restated restated restated restated Revenues 4,835 4,071 18.8% 1,953 1,908 2.4% 11,807 11,728 0.7% - 3,403 - 2,602 30
Slide 41: Latam
9M 2015 Latam Enel Group Investor Relations 9M14 €mn 9M15 % restated Revenues 7,974 6,885 15.8% EBITDA 2,292 2,026 13.1% EBIT 1,580 1,338 18.1% Capex 1,289 911 41.5% Headcount¹ 12,297 12,301 0.0% 1. Data refers to FY2014 40
Slide 42: Focus on Latam: Chile
9M 2015 - Focus on Latam Chile Enel Group Investor Relations Generation & Trading Infrastructure & Network Other TOTAL 9M14 9M14 9M14 9M14 €mn 9M15 % 9M15 % 9M15 % 9M15 % restated restated restated restated Revenues 1,553 1,202 29.2% 871 784 11.1% 52 21 147.6% 2,476 2,007 23.4% EBITDA 448 319 40.4%
Slide 43: Focus on Latam: Brazil
9M 2015 - Focus on Latam Brazil Enel Group Investor Relations Generation & Trading Infrastructure & Network Other TOTAL 9M14 9M14 9M14 9M14 €mn 9M15 % 9M15 % 9M15 % 9M15 % restated restated restated restated Revenues 265 378 -29.9% 1,920 1,678 14.4% -3 -3 0% 2,182 2,053 6.3% EBITDA 112 133 -15.8% 29
Slide 44: Focus on Latam: Colombia
9M 2015 - Focus on Latam Colombia Enel Group Investor Relations Generation & Trading Infrastructure & Network Other TOTAL 9M14 9M14 9M14 9M14 €mn 9M15 % 9M15 % 9M15 % 9M15 % restated restated restated restated Revenues 709 747 -5.1% 850 867 -2.0% 0 0 n.s. 1,559 1,614 -3.4% EBITDA 457 522 -12.5% 310
Slide 45: Focus on Latam: Peru
9M 2015 - Focus on Latam Peru Enel Group Investor Relations Generation & Trading Infrastructure & Network Other TOTAL 9M14 9M14 9M14 9M14 €mn 9M15 % 9M15 % 9M15 % 9M15 % restated restated restated restated Revenues 444 386 15.0% 476 380 25.3% -2 1 n.s. 918 767 19.7% EBITDA 218 198 10.1% 141 114 23.7
Slide 46: Focus on Latam: Argentina
9M 2015 - Focus on Latam Argentina Enel Group Investor Relations Generation & Trading Infrastructure & Network Other TOTAL 9M14 9M14 9M14 9M14 €mn 9M15 % 9M15 % 9M15 % 9M15 % restated restated restated restated Revenues 206 157 31.2% 631 285 n.s 2 2 0% 839 444 89% EBITDA 77 64 20.3% 97 -117 n.s 0 -1
Slide 47: Renewables
9M 2015 Renewables Enel Group Investor Relations 9M14 €mn 9M15 % restated Revenues 2,258 2,016 12.0% EBITDA 1,470 1,312 12.0% EBIT 751 885 -15.1% Capex 1,700 1,060 60.4% Headcount¹ 4,262 3,609 18.1% 1. Data refers to FY2014 46
Slide 48: East Europe
9M 2015 East Europe Enel Group Investor Relations Slovakia Russia Romania Other TOTAL 9M14 9M14 9M14 9M14 9M14 €mn 9M15 % 9M15 % 9M15 % 9M15 % 9M15 % restated restated restated restated restated Revenues 1,770 1,822 -2.9% 788 1,162 -32.2% 750 756 -0.8% 233 192 21.4% 3,541 3,932 -9.9% EBITDA 789 299
Slide 49: Other
9M 2015 Other Enel Group Investor Relations Hoding Upstream TOTAL 9M14 9M14 9M14 €mn 9M15 % 9M15 % 9M15 % restated restated restated Revenues 419 451 -7.1% 5 81 -93.8% 424 532 -20.3% EBITDA -74 -26 n.s. -7 68 n.s. -81 42 n.s. EBIT -94 -47 100.0% -7 67 n.s. -101 20 n.s. Capex 7 8 -12.5% 17 7 n.s. 24
Slide 50: Capex by business area (€mn)
9M 2015 Capex by business area (€mn)1 Enel Group +16,7% Investor Relations 4,680 24 +60.0% 4,012 15 1,700 +60.4% S&H 1,060 Renewables Latam 911 1,289 +41.5% Iberia 513 East Europe +12.1% 575 Italy 598 135 -77.4% 915 957 +4.6% 9M14 9M15 1. Continuing operations, gross of contributions 49
Slide 51: Production mix (TWh)
9M 2015 results: operational annexes Production mix (TWh) -3.0% 54.1 52.5 Enel Group 0.4% 0.7% Investor Relations 8.2% 9.9% Group production mix 47.8% 51.5% Italy +1.5% 9.6% 10.2% 34.0% 27,7% 210.5 213.7 10.5% 10.0% 12.9% 14.1% 9M14 9M15 28.5% 30.0% +3.1% 14.0% 14.1% 7.1% 7.8% 156.4 161.2 27.0% 24.0
Slide 52: Group total net installed capacity
9M 2015 Group total net installed capacity1 Breakdown by source and location Enel Group Investor Relations Large Hydro Hydro Other Nuclear Coal CCGT Oil&Gas TOTAL MW EGP renewables ST/OCGT Italy 10,892 1,513 1,667 - 6,478 5,199 5,066 30,815 Iberia 4,721 43 2,240 3,318 5,305 5,445 2,417 23,489 Latam
Slide 53: Group total net production
9M 2015 Group total net production1 Breakdown by source and location Enel Group Investor Relations Large Hydro Hydro Other Nuclear Coal CCGT Oil&Gas TOTAL GWh EGP renewables ST/OCGT Italy 9,783 4,778 5,343 - 27,058 5,190 367 52,519 Iberia 6,009 57 3,131 19,760 19,596 5,572 4,954 59,079 Latam 25,054
Slide 54: Enel Green Power net installed capacity
9M 2015 Enel Green Power net installed capacity: Breakdown by source and location Enel Group Investor Relations Hydro Geothermal Wind Other TOTAL MW Italy 1,513 761 720 144 3,138 Iberia 43 - 2,187 52 2,282 Latam 732 - 1,142 179 2,053 Romania - - 498 36 534 North America 316 72 1,665 29 2,082 Rest of
Slide 55: Enel Green Power net production
9M 2015 Enel Green Power net production Breakdown by source and location Enel Group Investor Relations Hydro Geothermal Wind Other TOTAL GWh Italy 4,778 4,321 880 135 10,114 Iberia 57 - 2,967 164 3,188 Latam 2,805 - 2,014 191 5,010 Romania - - 974 37 1,011 North America 634 284 4,113 37 5,068 Rest o
Slide 56: Contact us
Contact us Enel Group Investor Relations Team (investor.relations@enel.com)Investor Relations Tel. +39 06 8305 7975 Visit our website at: www.enel.com (Investor Relations) 55
Slide 57: 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