Enel S p A : Strategic Plan 2026-2028 (2026 2028 enel strategic plan)

About this update from Enel Spa

Capital Markets Day2o2s February 23 r d Milan Agenda Flavio Cattaneo, CEO The Group in the energy context The Group in the next three years Stefano De Angelis, CFO 2026-28 Strategic Plan Flavio Cattaneo, CEO Value creation and Closing remarks Flavio Cattaneo G roup's CEO Delivering top results in the industry, while reducing net debt and increasing financial flexibility Delivering on strategic path 2022 2025 2022 2025E 3.1x ND/EBITDA 2.5x 0.53 EPS Growth ¦3% 0.C3 Assets' Portfolio turnaround boosting profitability Group's EBITDA (€bn) CAGR Net income/EBITDA conversion 1 Financial Discipline achieving flexibility to support future growth Selective capital allocation reducing risks while enhancing value creation ~1G €bn +5% ~ 22.G €bn ~30% +6p.p. ~25% Avg. 2020-22 2025 Avg. 2020-22 2025E Commitments over delivered , driving sustainable growth … creating value for our shareholders Share Price Evolution 1 (€/sh) Shareholders' remuneration Total shareholder return 1 Market Cap FROM TO 61 €bn G1 €bn +80% +4G% Enel Shares Buy Back 80% ~1 66% 2023-25 ~15 €bn Apr.12 th 2023 TSR Share price Feb.19 th 2026 ~14 Dividends EuroStoxx Utilities The Group in the energy context Energy context: Acceleration of global power demand… 2024-35 AI s Data Center: +3x driven by AI uptake and digitalization Electric mobility: +4X supported by the technological development and affordability Residential s Automation: +30% on wider penetration of heating C cooling systems and robotics Industry: +30% mainly driven by industrial recovery economic and additional growth Global electricity demand ('000 TWh) X CAGR 3% 37.8 27.3 2024 2035 Source IEA, World Energy Outlook 2025, STEPS scenario; IEA, Energy and AI 2025 7 … calls for a new strategic positioning Energy demand Electricity demand peaking Value creation opportunities Base power supply evolution Time horizon Tier 1 geographies Power demand growth 100 2023 2026 2028 Investment approach driven by value-creation opportunities (i.e. power demand growth and timing) Gap between supply needs and generation availability set to boost greenfield investments ' requirements Increasing opportunities for Brownfield and Asset Rotation Ready to deploy investments in right geographies with the right timing The Group in the next 3 years Strategic pillars 1 Growth Based on balance sheet flexibility Brownfield: grids, generation C customers Greenfield projects Tier1 countries with stable environment 2 Productivity Optimizing capital allocation Balance sheet strength and flexibility Enhance productivity C efficiency Streamline internal processes and activities leveraging also on AI Boost execution effectiveness Stepping up process s activities simplification 3 Risk/Return Preserving low risk profile Assets and investments with visible and predictable returns Customer base as a natural hedge Boosting growth preserving financial discipline Improving EPS profile Financial flexibility allocation to boost growth and value creation Net Debt/EBITDA Peers Average 1 3.5x Maximum Flexibility allocation Shareholder's remuneration Brownfield & Greenfield Geographies: Europe, 2.5x flexibility ~3.0x ~30% ~15 €bn ~70% US and other Tier 1 countries Businesses: renewables, grids and customers Avg. Return: 200/300 bps according to business/technologies/geographies Maintaining a solid leverage whilst allocating financial flexibility to expand Group's asset base and improve shareholder's return Brownfield opportunities as a lever to reduce risk and maximize returns, lowering time to EBITDA 1. Based on publicly available data published by companies 11 Capital allocation set to lead the transition, securing profitability and industrial growth Total Investments (€bn) +10 €bn ~53 1 €bn ~43 1 €bn 26 +60% vs old plan 26 26 16 Further investments in grids to increase resilience and lead the transition Focus on Tier 1 countries to reduce risk and enhance value Renewables Grids Europe 50% 2026-28 ~20 €bn Other Tier 1 50% Latam 24% 2026-28 26 €bn Europe 76% Old Plan 2025-27 Grids New Plan 2026-28 Renewables Customers Business KPIs RAB Growth (€bn) RES capacity (GW) 2 Clients (mn) 3 47 58 68 >80 23 ~26 2025E 2028 2025 2028 2025 2028 Reducing risk and increasing visibility Cumulated EBITDA Grids EBITDA Regulated/ Contracted FULLY regulated FFO by Currency 1 EUR & USD 2026-28 74 €bn >G0% Regulated generation Contracted generation Customers covered by regulatory schemes Production covered by forward sales and PPAs with an avg. duration of 8 years Regulated customers and volumes already priced/ contracted Other 19% 2026-28 ~47-4G €bn 81% Regulated and contracted EBITDA offers ample visibility on future delivery Progressing on productivity and effectiveness, leveraging also on AI AI applications (#) 2028 2025E 2022 Evolution of addressable cash-cost baseline 1 (€bn) ~1 €bn -25% Vs 2022 >5 ~ 6 ~7 29% 350 +15p.p. 44% 71% 56% x 250 AI Gen AI Process Coverage 20% 80% 2024 2025 2028 20% 40% 100% 2023 efficiency plan executed 1 year in advance 0.7 €bn additional efficiencies to be addressed by 2028 Boosting AI initiatives: 100% Cloud Applications, digitalized process C leading market solutions 1. Addressable cash-costs exclude new generation asset development, grids reguated totex and perimeter effect. In real terms Data Centers to catch new business opportunities Business model Key opportunities Retaining control of the value pools Data Centers power availability, customer relationship and optionality on capacity Provide value-added solutions to Data centers operators leveraging on Enel's global scale and know-how Cash-positive profile since day 1 Reduced exposure to market volatility Reduced capital intensity Long-term relationship with the client through commodity supply 8 Sites ready to use, some of which already in advanced stages Electric infrastructure: connection and PPA Current pipeline already enables 2 TWh additional generation @2030 Full potential @2050: >30 TWh potential energy supply to DC Customers: an enriched offering portfolio to boost customers' value Enriched offering portfolio Bundled offers (#) Churn (%) +10% -10% TLC services Power s Gas 2025E 2028 2025E 2028 Avg. Lifetime (y) 4.5 5 Electric Mobility LENE a new fully digital company to innovate customer's service and engagement Enhance customer's loyalty through tailored and bundled offers to boost customers' value 2025-28 targets EPS (€/sh) CAGR 25-28 1 ~ +6% ~0.6G 0.66 0.72-0.74 CAGR ~ +7% 2 0.80-0.82 2025 baseline 2026 2028 Energy Decree Impact 2025 adjustment does not include IRAP step-up impact because the impact will expire in 2027 1. Calculated on 2025 expected data 2. Calculated on 2025 baseline Stefano De Angelis G roup's CFO 2026-28 Strategic Plan 2025 results and headwinds proved the resiliency of our reshaped Assets' Portfolio and the visibility granted by a secured Business Model 2025 scenario was affected by significant and unprecedent headwinds Increasing Curtailment in LatAm Negative FX Impacts (USA, Brasil) 2X Ancillaries Services' Bill (Spain) to keep Energy System security Low Hydro Resources in Italy and Chile 27% NI/EBITDA CAGR +G% 5.4 Net Income (€bn) 7 +9% 30% Net Income CAGR (3Y) 6.8 Mid Point ~30% +0.2 CMD Guidance 1 +0.2 €bn Overperformance vs Net Income Guidance 1 2022 2025E 1. Mid Point 2025 Guidance (6.7-6.9 €bn) Assets' Portfolio turnaround delivered unique Growth and Cash Generation Improved Credit Metrics 2023-25 ROIC growth drivers CMD 2022 CMD 2026 Net debt (€bn) -3 €bn 60 57 2022 2025 Record high MsA multiples executing 2022 Disposal Plan First mover on selective capital allocation approach ( +7 €bn Capex in Grids) Groups' streamline: Country C Business Investments > Sourcing < Cost of Debt 37 53 (€bn) 15% 46% 27% FFO/Net Debt FFO/EBITDA NI/EBITDA 26% 65% ~30% Portfolio rationalization Efficiency Plan (-1 €bn) executed ahead of schedule Shift to AI and native Cloud SaaS solutions, - 30% running cost on ICT (-0.4 €bn) ROIC 1 2025 vs 22 < D&A > Returns +2 p.p. Efficiencies were successfully re-invested in Assets with secured and risk-weighted Returns Solid and resilient Business Portfolio and sound Balance Sheet trigger Financial Flexibility use to tap Growth Acceleration and sustain a further expansion in Shareholders Remuneration 1. Based on ordinary results 2025 results set an improved foundation to build future growth EPS evolution (€/sh) Additional Shareholder Remuneration 0.80-0.82 2025E 0.6G Organic Step-up 0.67 CAGR +~6% 0.70 0.72 0.65 CMD 2025-27: CAGR +3% Re-levered additional Growth (including SBB) Organic step-up already secured in 2025 Old Plan 2025-27 Up 3.5 €bn 1.0 €bn Share buy-back EPS Old Plan to Share Buy Back Program Enel SpA 1 ~ 6 €bn already executed in 2025 1.0 €bn additional tranche execution approved by the BoD at Group Level 2 2024 2025E 2026 2027 2028 In a context where visibility makes the difference, we built a sustainable route to deliver a solid EPS Growth Play the incoming Multiverse of different Energy Transition landscapes 10 €bn Growth acceleration 1. SBB program approved by 2025 AGM 2. up to 3.5 €bn at Enel SpA level + up to 2 €bn at Endesa and 0.4 €bn at Enel Americas level 22 The Industrial Plan leverage on our diversified Portfolio with Growth Acceleration focused on most attractive Tier-1 frameworks Integrated business Grids EBITDA (€bn) Investments Investments EBITDA (€bn) Investments (€bn) Investments (€bn) Intensity Intensity 2025 2028 vs 25 2025 Cum 3Y Baseline 1 Growth acceleration 2025 2028 vs 25 2025 Cum 3Y Baseline Growth acceleration 11.2 >+1 ~3 >23 6.4 +0.5/0.7 5.3 >20 2.8 +~0.5 ~4% CAGR ~1 ~3 2.5 + ~0.5 ~4% CAGR 1.7 >6 Total 14.1 +1.8/2.0 ~4 €bln >26 Total 8.G +1.0/1.2 €bln 7.0 >26 Europe: amid permitting constraints and ahead of full visibility on future shape of the Regulatory Framework, focus is on Regulated Auctions (i.e. FER-X, MACSE) , Hybridization , Repowering and Brownfield. US data driven growth calls for a unique momentum . >90 % secured EBITDA as mandatory . Tier 1 Countries: Europe includes Italy, Iberia and other countries. Italy : long-term visibility sets Capex at maximum effort Spain will ramp-up progressively and will continue to expand Capex beyond 2028 LATAM : we continue to pursue a mutually fair framework balancing sustainability of the relevant investments' need with just and visible returns . Grids RAB expansion enhance visibility on regulated earnings evolution Total Investments 1 Latam 24% Focus Italy 2026-28 Investments by nature Investments break-down (€bn) Grants 2026-28 26 €bn 55% (EU Funds) Recurring 2 10% Capex net of grants ~13 Grants ~2 21% RAB (€bn) Returns 2025E 2028 47 58 +22% 29% Connections 15 €bn Rab-in 24% Networks' Upgrade 38% Connections Remunerated Cash Cost Rab-in >10 In line with old plan 13% EBITDA/Development capex 7% Blended regulated return 2 over 2026-28 RAB (€bn) 2025E 2028 23 30 +7 €bn vs +c €bn old plan 1. Split does not include "Other" 2. Asset maintenance and recurring network development Renewables Tier-1 markets are already calling for higher capital allocation in Renewables Key operational 1 New capacity (GW) Total investments Capital allocation Maintenance capex Other 4% ~G GW Greenfield focused on (i) Regulated schemes (ii) Long-Term 10% 4% 18% PPA's and (iii) Residentials short positions. IRR-WACC > 300 bps 3.8 PV Generation >G0% secured and full profiled 2026-28 ~20 €bn 50% 15% Brownfield brings No- Construction Risk , full visibility on M/Long-Term Cash Flow and PsL ~6 GW High Flexibility in exploiting deals to play the growth acceleration thanks to the shorter time-to-COD ~15 GW total additions +2.6 TWh production from repowering ~30% ~+8 €bn vs. Piano 25-27 Total production 2 (TWh) 147 ~1G0 43 55 30 20 Predictable Attractive Returns 10-12% EBITDA /Development capex >200 bps average spread IRR-WACC Adj. G0-100% EBITDA Secured by >10Y PPA ~+5 €bn vs. old plan ~+2 €bn vs. old plan 2025 2028 1. It includes deconsolidated capacity 2. It includes deconsolidated and BESS production 3. Europe includes Italy, Iberia and Germany Europe 3 North Am. Latam ROW 7.0 4.3 >75% wind and programmable technologies Brownfield acquisition step-up will support Growth Acceleration and faster cash and economic conversion Acquisition 100% hydro asset ¦0.C GW Acquisition of over 1 GW of RES portfolio through its JV Potentia Energy Acquisition of c2.5% of CETASA +100MW Swap Agreement between EGP NA and Gulf Pacific Power 285 MW of additional consolidated capacity Acquisition of 51 MW of operating Wind assets Acquisition of four operational wind farms ¦150.2 MW throug its JV Principia Acquisition of Energía Colectiva: >350k customers 2025 1Q Feb 2c th H1 Apr 3 rd 9M Jul 31 st Oct 1 st FY Dec 15 th 2026 Jan 2S th 1Q Feb S th ¦3 GW Additional Capacity ~ 3 €bn of assets acquisition ~850 MW solar and wind capacity PPA Expiration ~1 $bn Net Debt impact >120 €mn EBITDA per year at regime Contracted NPV US in the last 15 months 1 Power Price scenario has been adjusted to the Energy Decree provisions reflecting a smooth ETS impact on Power Prices going forward Integrated Energy Management B2C s SMB FIXED Offer >G0% of the Renewable Generation Renewables' Generation hedged with Fixed B2C and SMB 6Y Customer Base avg lifetime Price review after 12 months Opportunistic Pre-hedging to extract additional value from the portfolio G5% G0% New B2C Clients (CB Rotation, churn driven) Existing B2C Clients (Re-Pricing optionality) Existing B2C with 2/3Y Fixed Price Industrial Plan Scenario Power Price Italy (€/MWh) 2026E 2027-28E Forward 2027-2028 102 33 up to -15€ change in 2027-2028 delivery date 87 78 Forward 2026-2028 (historical Forward price) Cal. 26 Cal. 27 106 Cal. 28 G7 86 G5 110 GG 86 78 2024 2025 91 February (before Energy DL) 2026 Energy Decree impacts (preliminary assessments) Impacts on Net income (€bn) ~0.4 €bn/y ETS Effective from 01.01.2027 1 < 0.1 €bn/y Step-up in Net Debt from YE202c ~ 0.2 €bn/y Effective in 202c-27 ~ 0.6 €bn/y ~ (0.1) €bn/y ~0.3 IRAP ~0.2 0.3/0.4 €bn/y Gas Trasmission C Spread PSV-TTF ETS Offset System Charge Early payment (cost of Debt) Tax Rate IRAP +2p.p. Cumulated Managerial Mitigation Net Impact (2027 max impact, IRAP step-up expires in 2027) EBITDA Net debt (cumulated) Max impact @2028 0.4 0.8 0.8 0.4 202c-28 0.8 2.0 (0.2) 1.8 EPS bridge to target: scenario headwinds factorized and visibility on growth drivers support our ambitions EPS evolution (€ cents) Market Scenario de-risked assuming ETS system revision +6 +2 +3 +1/-1 80-82 6G 0.6G 1 (3) +1 (2) +3/4 +3 Greenfield Brownfield MACSE , FER-X (Italy) awarded capacity Capacity Market with BESS Repowering Spain/Italy ¦3TWh included ) US (Safe Harbored, near FID, +0,4GW Wind, COD-2028) BESS Chile under construction, Spain and USA (COD 2027-8) M&A/BD process set and ramping-up US Portfolio's Rotation from Utilities and Funds is massive and expanding . EU Assets' secured Brown portfolio including actionable pipeline RTB is a model under assessment. EPS Energy decree GAS and Power Share BB Networks Additional Productiovity Integrated EPS 2025E impact Scenario on Commodity, Wholesale and EU Retail Market (1€Bn Fee Scenario) Capacity Brown C Greenfield Business Transformation Project Market LatAm (w/o Growth) Including FX 2028 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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