Enel Spa · MIL:ENEL
Enel Spa — Investor Day (November 2019)
113 slides from Enel Spa's investor day presentation, November 2019
Slide 1: Capital Markets Day Strategic Plan 2020-22
Capital Markets Day Strategic Plan 2020-22
Slide 2: Agenda
Agenda Our positioning Francesco Starace Sustainability = Value. Our delivery over time CEO & General Manager Our vision Our vision in numbers Financial management & Alberto De Paoli 2020-2022 Sustainable finance Chief Financial Officer Strategic plan De-risking long term targets Earnings & targets
Slide 3: Capital Markets Day Strategic Plan 2020-22
Capital Markets Day Strategic Plan 2020-22 Francesco Starace CEO & General Manager
Slide 4: Our positioning
Our positioning
Slide 5: A sustainable and fully integrated business model delivering value
Our positioning A sustainable and fully integrated business model delivering value for shareholders EBITDA by business Total shareholder return 2015-20191 140% 9% 120% 100% 26% 80% 18% 2019E 60% 131% 17.8 €bn 40% 1% 20% 41% 56% 0% Enel FTSE MIB Euro Stoxx 46% Utilities SRI2 10.5% 1. From Jan 1st 201
Slide 6: Enel's leadership in the new energy world
Enel’s leadership in the new energy world Our positioning # End users 1st network operator1 73 mn Renewable capacity World’s largest player2 in 46 GW renewables # Customers Largest retail customer base 71 mn worldwide3 1. By number of end users. Publicly owned operators not included 5 2. By installe
Slide 7: Sustainability = Value Our delivery over time
Sustainability = Value Our delivery over time
Slide 8: A sustainable business model that has delivered growth
Sustainability=Value A sustainable business model that has delivered growth and improved visibility EBITDA dynamics (€bn) CAPEX and financial KPIs evolution Traditional model Sustainable model CAGR 2012-15: -1.7% CAGR 2015-19: +4.4% +27% ~10 €bn 12.0 0 ~8 €bn 19 ✔ 10.0 0 18 8.00 24% Other 17 ✔ 35% 1
Slide 9: Capital allocation focused on renewables
Sustainability=Value We have focused our capital allocation on renewables… Generation capex: 2015 vs 2019 Renewable and Thermal Production (TWh) -16% 300 17% 244 250 34% ~36% 205 89 ~49% 200 4.6 €bn 5.2 €bn 100 150 66% 100 83% 1551 1051 50 0 2015 2019E 2015 2019E ~70% % Development ~80% ~40% % RES C
Slide 10: Becoming the world leader in renewables
Sustainability=Value …to become the world leader in renewables 2015 2019E Installed capacity1 Installed capacity 37 GW 46 GW Built capacity Built capacity 1 GW 3 GW EBITDA/CAPEX EBITDA/CAPEX 11% 11% >1.2k plants 31 Countries 9 1. Including managed capacity by 3.4 GW
Slide 11: Grid expansion and digitalisation have driven efficiencies
Sustainability=Value Grid expansion and digitalisation have driven efficiencies and created value 2015 2019E End Users End users Bogotá Ceará 61 mn 73 mn Goiás Smart meters Smart meters Lima Rio de Janeiro Sao Paulo 38.5 mn 44.7 mn Smart meters 2.0 Smart meters 2.0 Santiago Buenos Aires 0 mn 13.1 mn
Slide 12: Focus on customers and platforms
Sustainability=Value We focused on customers and platforms to seize future opportunities Customers – key metrics New deployments Energy sold (TWh)1 2015 2019E +20% Charging 180 points3 0k 82 k 160 161 140 120 100 134 80 60 Demand 40 Response 0 GW 6.3 GW 20 - 2015 2019E Power cust. (mn)1 ~12 ~17 Batt
Slide 13: Innovation and digitalisation process
Sustainability=Value A pervasive innovation and digitalisation process drives change in our organization Platformisation process 2017-19E Total investment1 < 2015 2019 > 2020 Pre-Digital Full migration Platform operating ~4.5 strategy to cloud model €bn 2017-19E Cumulated benefit2 Fragmented IT 100%
Slide 14: Delivery on strategic pillars
Sustainability=Value Delivery on strategic pillars ✔ Industrial Growth ✔ Operational Efficiency ✔ Active Portfolio Management Impact on Group Net Income EBITDA (€bn) Cost Savings (€bn) (€bn) 18 2 0 17 1 16 17.0 17.8 1 1.5 0 0.3 15 0 1 14 13 12 1 1.1 0 0.2 1 0 11 0 10 0 0 9 8 - - 2019 2019E Plan Actu
Slide 15: Value creation and shareholders remuneration
Sustainability=Value Value creation and shareholders remuneration Value creation spread1 (bps) Shareholder return – DPS (€/sh) +250 +106% 400 0.35 0.33 350 370 ✔ 0.30 ✔ 300 0.25 0.28 250 0.20 ✔ ~0.24 ✔ 200 0.15 0.18 150 0.16 0.10 MIN 100 120 0.21 0.28 0.32 DPS 0.05 50 - - 2015 2019E 2015 2016 2017 2
Slide 16: Our vision
Our vision
Slide 17: Strategy addresses evolution of sector trends
Our vision Our strategy addresses dynamically the evolution of sector trends Decarbonisation Enabling Ecosystems Infrastructure & Platforms Electrification 16
Slide 18: Global outlook: decarbonisation through renewables and services
Our vision Global outlook: decarbonisation through new renewable capacity and services Share of renewables on global capacity1 Flexibility and storage2 Demand Response 250 (GW) 200 200 3.5x 150 31% 100 145 35% 50 2018 2040 - 57 Total capacity Total capacity 2020 2030 2040 7.2 TW 15.5 TW 65% 69% 1,40
Slide 19: Global Power Generation: new business line
decarbonisation Global Power Generation: a new global business Our vision line to accelerate decarbonisation 2019E1 Consolidated Capacity1 (GW) # sites 85 82 87 60.0 55.0 Accelerate and facilitate the decarbonisation path ~1,300 50.0 45.0 48 54 40.0 35.0 42 39 30.0 37 25.0 33 Extract synergies and m
Slide 20: Phasing out of coal production
decarbonisation Our vision Phasing out of coal production over the plan period and beyond… 120 .0 100 .0 80. 0 Coal production 60. 0 (TWh) 40. 0 92.0 64.4 20. 0 40.0 74% 0-2 16.9 10.4 0.0 2012 2018 2019E 2022 2024 2030 Coal on total 19 p.p. production 31.1% 25.7% 17.3% 6.8% 3.9% <1% (%) Coal capacit
Slide 21: Accelerated renewables deployment
decarbonisation …with an accelerated renewables deployment Our vision 2020-22 GROWTH CLUSTERS GW Target of capacity to be added (GW) Fleet decarbonisation in Italy, Spain and Chile 5.4 1.8x Development through PPA mainly in Brazil and US 5.1 16 14 12 Other developments in countries of 1.1 10 presenc
Slide 22: Further acceleration of renewable additions
decarbonisation Our vision Further acceleration of renewable additions fueled by organic development Additional capacity evolution: 2019-21 vs 2020-22 plan Renewable capacity evolution (GW) +22% +31% Total capacity 45.7 59.8 (2.2) 5.6 3.4 14.1 54.2 2.6 42.3 (1.8) 1.7 +28% 11.6 65% 14.1 Old plan BSO
Slide 23: Largest and most diversified renewables pipeline
decarbonisation Our vision The largest and most diversified pipeline of the industry is fueling future growth ambitions Renewables pipeline1 (GW) Breakdown by technology 100 .0 31.4 GW 90. 0 1% 80. 0 43% 70. 0 60. 0 58.6 31.4 GW 50. 0 90.0 56% 2.1 40. 0 3.6 30. 0 6.1 20. 0 xx 25.7 10. 0 19.6 Wind So
Slide 24: High visibility on deployment goals
decarbonisation Our vision High level visibility on deployment goals 2020-22 Renewables growth1: addressed share vs pipeline2 (GW) 30. 0 31.4 GW 2020 95% Coverage 25. 0 by year 2021 65% 11.8 2020-22 pipeline 2022 17% Beyond 2022 ~ 3.2x 20. 0 Residual target 15. 0 14.1 GW 19.6 10. 0 43% 8.0 2020-22 P
Slide 25: Path towards full decarbonisation by 2050
decarbonisation Our vision Strategy strongly supports our path towards full decarbonisation by 2050 Scope 1 & Scope 3 CO2 emissions evolution 600 .000 500 .000 -70% 400 .000 465 FULL decarbonisation 411 BY 2050 Scope 11 300 .000 (g CO2/kWh) 319 200 .000 254 100 .000 125 0.0 00 2007 2017 2019E 2020 2
Slide 26: Global outlook: electricity is winning the energy battle
Our vision Global outlook: electricity is winning the energy battle Share of electricity on total final energy consumption1 End use avg. investments needed for electrification (‘000 TWh) (USD Tn/year) +11.5 ~2x 2 1.2 0 23 34.6 2 1.0 0 + 1 bn electric cars 2 1 ~2.5x 24% 43% 0.8 0 1 + 2.8 bn air cond.
Slide 27: Retail positioned ahead of electrification trends
Electrification Our vision Retail will position ahead of electrification trends, paving the way for further growth Power customers Power volumes sold Unitary consumption (mn) (TWh) (MWh/client) 40. 0 12 35. 0 200 .0 10 30. 0 +65% +21% 8 Developed 25. 0 20. 0 150 .0 6 -27% markets 15. 0 28.6 100 .0 1
Slide 28: New services enable decarbonisation and electrification
Ecosystems & Platforms Our vision New services enable decarbonisation and electrification of consumption Decarbonisation through new services Enabling electrification Revenues from Demand Response (GW) Storage (MW) Charging points1 (k) Electrification services (€mn) 1.6x 4.6x 8.9x 2.3x 12 500 800 60
Slide 29: Global outlook: networks as the backbone
Our vision Global outlook: networks as the backbone of a sustainable electric system Energy system evolution Average yearly investments in networks (USD bn)1 800 700 +85% 600 500 400 300 200 500 Aggregator 100 270 TSO 0 2010-2018 2019-2040 DSO DSO TSO Average investments in smart meters and grids (U
Slide 30: Infrastructure and networks development
Enabling Infrastructure Our vision Development of Infrastructure and Networks centered on digitalisation, quality and efficiency Digitalisation Quality of service Efficiency Smart meters 2.0 (mn) SAIFI1 (n) Opex/End user (€) >2x -9% -17% 35. 00 3.25 50.0 0 30. 00 3.20 45.0 0 25. 00 28.8 3.15 40.0 0
Slide 31: Towards a platform company
Our vision Towards a platform company Distribution Retail Enel X Activities Products Global Front End Asset Operator Customer Management Customers Prosumers Asset Owner Digital layer Unique database & Network Digital Twin Back End Assets Buy Standardized Suppliers & (e.g. charging Physical Cities as
Slide 32: A fully sustainable capex plan
Our vision A fully sustainable capex plan Total gross capex by business and by nature 2020-22 Asset development by business 2020-22 4% 41% 4% 6.5 7% 66% 28.7 €bn 28.7 €bn 27% 17.2 €bn 17.2 5.0 3% 44% 4% Networks Enel X Asset development Retail EGP Customers Networks Enel X Conventional generation As
Slide 33: Sustainable, profitable, digitalised and customer centric
Our vision Sustainable, profitable, digitalised and customer centric 2015 2019E 2022 Renewables focus Owned RES capacity/Total capacity1 41% 50% 60% CO2 Footprint Specific CO2 emissions g/kWh 409 319 220 Coal power plants # 19 14 7 Networks end users mn 61 73 75 Smart meters 2.0 mn - 13.1 28.8 Retai
Slide 34: Purpose driven strategy promotes sustainable value creation
Our vision Purpose driven strategy promotes sustainable value creation for shareholders Value creation spread1 (bps) Shareholder return – DPS (€/sh) +27% CAGR 0.4 5 2019-22 450 0.4 0.42 + 8.4% 440 0.3 5 0.40 0.37 400 0.33 0.3 370 350 0.2 5 0.2 300 Min DPS 0.1 5 0.32 0.35 0.37 0.40 +7.7% 0.1 250 0.0
Slide 35: Strategic Plan 2020-2022
2020-2022 Strategic Plan
Slide 36: Strategic plan at a glance
2020-22 Strategic Plan Strategic plan at a glance Cumulated organic capex1 vs previous plan (€bn) EBITDA (€bn) +11% 24 +13% 22 29 27 20 25 18 23 28.7 16 21 25.9 20.1 19 14 17.8 12 17 15 10 2019-21 2020-22 2019E 2022 Net Income (€bn) Net Debt (€bn) 7 +27% 51 +3% 6.5 49 6 47 5.5 45 5 4.5 43 4 6.1 47.3
Slide 37: Focus on profitability, value creation and balance sheet
2020-22 Strategic Plan Focus on profitability, value creation and balance sheet Profitability Return on invested capital Credit metrics +300 bps +200 bps +400 bps 0.3 5 14. 0% 35. 0% 12. 0% 30. 0% 0.3 0 30% 10. 0% 25. 0% 29% 9.6% 10.2% 25% 25% 27% 0.2 5 8.0 % 20. 0% 6.0 % 8.2% 15. 0% 0.2 0 19% 4.0 %
Slide 38: Our vision in numbers
2020-2022 Our vision in numbers
Slide 39: Organic capex up by 11%
Our vision in numbers Organic capex up by 11% to pursue strategic vision Organic capex by GBL1: 2019-21 vs 2020-22 (€bn) €bn +2.8 Decarbonisation 14.4 28.7 30. 0 25.9 Electrification 2.3 1.2 25. 0 2.4 20. 0 11.8 11.1 15. 0 Enabling Infrastructure 11.8 10. 0 10.0 12.5 1.1 5.0 Ecosystems & Platforms 0
Slide 40: Sound EBITDA growth reflecting strategic priorities
Sound EBITDA growth reflecting strategic priorities… Our vision in numbers Cumulated EBITDA (€bn) EBITDA evolution 2019-22 (€bn) +3% +13% 0.4 (0.5) 0.7 20.00 0.4 20.1 1.3 0.1 59 57 55 53 17.8 58.0 56.1 51 49 47 45 15.00 1 2019-21 2020-22 EBITDA EGP Conventional Retail Networks Enel X Perimeter EBITD
Slide 41: Ongoing delivery and focus on efficiencies
…supported by ongoing delivery and focus on Our vision in numbers efficiencies Opex evolution (€bn) Efficiencies by business -9% 0.5 (0.1) 5% (1.2) 26% 8.5 7.7 38% 1.2 €bn 31% 2019E CPI & Growth & Efficiency 2022 Forex Perimeter 32% Net operating expenses on gross margin 28% 40
Slide 42: Profitability of generation enhanced by decarbonisation
decarbonisation Our vision in numbers Profitability of generation enhanced by decarbonisation Global Power Generation EBITDA (€bn) Main KPIs1 +23% 10.0 0 9.00 2019E 2022 2019E 2022 8.00 7.6 7.00 6.2 0.5 Total Production Gross Margin/MWh Nuke (TWh) 231 249 (k€/MWh) 41 44 6.00 0.5 5.00 Total Capacity
Slide 43: Conventional generation focuses on flexibility and efficiencies
decarbonisation Our vision in numbers Conventional generation focuses on flexibility and efficiencies Gross capex 2019-21 vs 2020-22 (€bn) 2019E-22 EBITDA evolution (€bn) -24% 100% earmarked +6% 3.0 for development beyond 2022 0.2 2.5 (0.1) 2.5 (0.4) 0.3 0.6 1.9 1.7 2.0 1.6 0.1 1.5 0.7 1.9 1.0 0.5 1
Slide 44: Renewable capex tailored to maximise economic value
decarbonisation Our vision in numbers Renewable capex tailored to maximise economic value of decarbonisation Capex EBITDA/Capex IRR-WACC spread GROWTH CLUSTERS GW (€bn) (%) (bps) Fleet decarbonisation in Italy, Spain and 5.4 5.6 12-13% >200 Chile Development through PPA mainly in Brazil 5.1 4.7 12-1
Slide 45: Renewable capex to maximise economic value
decarbonisation Our vision in numbers Renewable capex to maximise economic value of decarbonisation Renewables asset development capex 2020-22 (€bn) 2019E-22 EBITDA evolution (€bn) +28% 6% 1.3 - 39% 5.9 11.5 €bn 4.6 55% Asset development capex 11.5 2019E Asset Asset 2022 development management Asset
Slide 46: Higher share of organic capex increases EBITDA
decarbonisation Our vision in numbers Higher share of organic capex increases EBITDA evolution Asset development capex evolution (€bn) Cumulated EBITDA growth (€bn) +8% +33% 2.5 11.5 10.6 (1.6) 0.7 2.4 1.6 BSO 1.8 (0.1) 9.0 +28% Old plan BSO Organic New plan Old plan BSO fee Organic New plan 1 2019-
Slide 47: Retail EBITDA growth due to platformisation
Electrification Our vision in numbers Retail EBITDA growth due to platformisation and related activities Retail gross capex 2020-22 (€bn) 2019E-22 EBITDA evolution (€bn) +13% +13% 41% 3.6 3.6 3.2 3.2 0.1 0.4 0.3 1.2 €bn 0.6 0.8 82% Free market 68% 2.2 2.3 59% Regulated 32% 18% 2019E 2022 2019E 2022
Slide 48: Networks capex focused on quality and efficiencies
Enabling Infrastructure Our vision in numbers Networks capex focused on quality and efficiencies Networks gross capex 2020-22 (€bn) Operating performance RAB (€bn) 2019E 2022 5% 13% 27% 50.0 0 ~ 43 ~45 Opex/end user 42.9 35.61 (€/cust) 11.8 €bn 40.0 0 ~12 ~14 5% 30.0 0 SAIFI2 (n) 3.2 2.9 50% 20.0 0
Slide 49: Infrastructure and networks improve cash generation
Enabling Infrastructure Our vision in numbers Infrastructure & networks set to improve cash generation 2019E-22 EBITDA evolution (€bn) FFO-CAPEX2 (€bn) +9% +5% 8 0.4 (0.1) 0.3 7.5 - 0.1 8.9 7 8.2 6.5 7.7 7.3 6 5.5 2019E Argentina Connections Tariffs, Efficiency FX1 2022 2019-21 2020-22 Volumes & Qua
Slide 50: Enel X captures new opportunities with customers
Ecosystems & Platforms Our vision in numbers Enel X will capture new opportunities with customers Gross Capex 2020-22 2019-22 EBITDA evolution (€bn) 5x 0.3 0.5 42% 58% 1.1 €bn 0.1 0.1 Enabling businesses 2019E Enabling Scale-up 2022 businesses businesses Scale-up business 49
Slide 51: ~12% of capex to generate ~800€mn EBITDA post 2022
~12% of 2020-2022 capex to generate ~ 800€mn Our vision in numbers EBITDA post 2022 2020-2022 Investments (€bn) Yearly EBITDA impact post 2022 (€mn) 30. 0 3.5 25. 0 ~2.4 Decarbonisation ~650 20. 0 28.7 ~1.1 ~150 15. 0 Enabling infrastructure 25.2 10. 0 5.0 Total yearly EBITDA 0.0 ~800 Gross Capex Ca
Slide 52: Financial management & Sustainable finance
2020-2022 Financial management & Sustainable finance
Slide 53: Debt evolution reflecting capital allocation
Financial management Debt evolution reflecting capital allocation dynamics Net debt evolution (€bn) Source of funds allocation 2020-22 (€bn) 50. 0 1.4 (28.7) +1.4 45. 0 40. 0 49.0 35. 0 42.1 47.0 30. 0 45.0 25. 0 43.0 20. 0 (14.7) 41.0 ~46.8 ~47.3 ~47.3 ~45.9 15. 0 39.0 10. 0 37.0 5.0 35.0 0.0 2019E
Slide 54: Improving credit metrics
Financial management Improving credit metrics Credit metrics Long term credit rating Rating Outlook 29% 4.5 0 35% 26% 27% 4.0 0 25% 25% 30% 3.5 0 25% Standard & Poors BBB+ Stable 3.0 0 20% 2.5 0 15% 2.5x 2.6x 2.5x 2.4x Moody’s Baa2 Positive 2.3x 2.0 0 10% 1.5 0 5% 1.0 0 0% Fitch A- Stable 0.5 0 -5%
Slide 55: Continued reduction in cost of debt
Financial management Continued reduction in cost of debt Financial strategy for 2020-22 (€bn) Cost of debt evolution (2019-22) Expected Current total 4.6% Amount 4.7% cost1 cost 4.5% 4.5% 4.4% 4.4% Bond refinancing 5.5 1.7% 3.7% (40) 4.3% bps (40) bps (50) (70) Bank loans and other bps 4.1 0.9% 2.8%
Slide 56: Our journey to Sustainable Finance
Our journey to Sustainable Finance… Financial management Path to SDG bonds Our SDG bonds Cost of issuance discount Size Maturity KPI USD 55%3 Issue 1.5 $bn 2024 20%2 Res. Capacity 10%1 SDG Bonds 55%3 Green 2.0 €bn 2024/27 - Res. Capacity Bonds EUR Plain Vanilla Focus on Issue 125 Bonds sustainable 0
Slide 57: Sustainable finance to support cost of debt reduction
…will support cost of debt reduction throughout the Financial management period Sustainable Finance evolution (2019-2030) Expected impact on cost of debt 120 .0 100 .0 -15 bps -5 bps -15 bps 80. 0 22% 23% 60. 0 43% 2019E 2022 2030 40. 0 57% 77% 78% 20. 0 0.0 Brown Kd SDG Kd 1 notch 2 notch Sustainab
Slide 58: De-risking long term targets
De-risking long term targets
Slide 59: EBITDA centered on sustainable businesses
De-risking our long term targets 2020-22 EBITDA centered on sustainable businesses and benefitting from improved risk profile Cumulated EBITDA evolution (€bn) Cumulated EBITDA 2020-22 60. 00 0.8 2.2 58 (0.9) (0.5) 0.4 80% 55. 00 56 58 €bn 20% 50. 00 EBITDA Argentina Coal Efficiencies Contracted Free
Slide 60: Renewables contribution to growth secured
Operating deployment: renewables’ contribution to De-risking our long term targets growth secured across the board Development secured 2020-22 Production secured Variance in renewable production 120 .0 2020-2022 Additional Capacity 14.1 60% 2020-22 (GW) 100 .0 Gap to target (GW) 6 2020-22 80. 0 ~45%
Slide 61: Over 90% of generation margin covered by sales
De-risking our long term targets Operating deployment: over 90% of generation energy margin covered by sales to customer base Integrated margin1 – energy margin vs retail margin Hedging position on price driven production Ren & Nuke 160 % Production1 60.0 hedged price vs Pool price +21% +19% (%) 201
Slide 62: Currency exposure: low bottom line impact
De-risking our long term targets Currency exposure: a low bottom line impact from volatile currencies 2020-22 EBITDA by currency Cumulated impact 2020-221 (€bn) EBITDA Group NI 11% BRL (0.69) 0.84 (0.21) 0.24 ARS (0.12) 0.15 (0.03) 0.06 58 €bn 28% 61% CLP (0.06) 0.09 (0.00) 0.00 Other (0.39) 0.48 (0
Slide 63: Excellent credit quality and well distributed maturities
De-risking our long term targets Excellent credit quality and well distributed maturities Net Debt/EBITDA of top European Utilities1 Liquidity and debt maturity by year (€bn) 25 20 3.5x 3.5 3.0x 15 2.6x 2.3x 3 2.5 10 21.9 6.7% 6.2% 9.6% 2 1.5 13.8 5 1 0.5 4.1 3.8 5.9 0 0 2019 2022 Available 2020 202
Slide 64: Earnings & Targets
2020-2022 Earnings & Targets
Slide 65: Sustainable strategy delivers earnings growth of 27%
Earnings and targets Sustainable strategy delivers earnings growth of 27% Group net ordinary income (€bn) Steady operational growth driving net income +27% performance 7.0 6.1 6.5 5.8 Sustainable finance and managerial actions 6.0 5.4 5.6 5.5 granting adequate and cheap funding 4.8 5.0 4.5 4.0 3.5 A
Slide 66: Visible value creation for our shareholders
Earnings and targets Visible value creation for our shareholders 2019-22 Earnings growth 2019E 2020 2021 2022 CAGR Ordinary EBITDA (€bn) 17.8 18.6 19.4 20.1 +4.1% Net ordinary income (€bn) 4.8 5.4 5.8 6.1 +8.3% 2019-22 Value creation CAGR Pay-out ratio 70% 70% 70% 70% - Implicit DPS (€/sh) 0.33 0.37
Slide 67: Closing remarks
Closing remarks
Slide 68: Closing remarks
Closing remarks Accelerating decarbonisation through renewables growth and coal phase out Future proofing operations ahead of electrification of consumption Solid balance sheet with ample liquidity Sustainable value creation for all stakeholders Significant growth opportunities beyond the plan 67
Slide 69: Annexes
2020-2022 Annexes
Slide 70: Agenda
Agenda Page Macro scenario 71 Conventional generation 74 EGP 77 Financial annexes Infrastructure & Networks 81 Retail 85 Enel Group 89 2020 – 2022 Sustainability Plan 97 Focus on People Centricity 99 ESG annexes Focus on Corporate Governance 102 Focus on Innovation & Cybersecurity 108 69
Slide 71: Financial annexes
2020-2022 Financial annexes
Slide 72: Macro scenario
2020-2022 Macro scenario
Slide 73: GDP, CPI, FX
Macro scenario GDP, CPI, FX GDP (%) CPI (%) FX against €1 2020 2021 2022 2020 2021 2022 2020 2021 2022 Italy 0.5 0.6 0.7 1.3 1.5 1.7 n. m. n. m. n. m. Iberia 2.0 1.7 1.5 1.7 1.8 1.9 n. m. n. m. n. m. Latin Am erica A rgentina (1.3) 1.4 1.8 48.6 34.8 22.9 77.8 95.2 115.2 B razil 2.6 2.6 2.5 4.1 3.9 3
Slide 74: Commodities' prices
Commodities’ prices Macro scenario 2019E 2020 2021 2022 Gas TTF (€/MWh) 18.2 19.2 19.5 19.7 Gas Henry Hub ($/m m btu) 2.9 3.1 3.1 3.1 Gas PSV (€/MWh) 20.8 20.9 21.1 21.3 Oil Brent ($/bbl) 68.0 65.0 65.0 66.0 Coal API2 ($/ton) 73.0 75.0 76.0 78.0 CO2 (€/ton) 23.5 23.5 24.0 24.5 73
Slide 75: Conventional generation
2020-2022 Conventional generation
Slide 76: Installed capacity (GW)
Installed capacity1 (GW) Conventional generation By technology By geography 8% 9% 32% 34% 35% 12% 15% 2019 2022 41% 2019 2022 29% 32% 36.5 GW 42.7 GW 42.7 GW 36.5 GW 18% 21% 38% 30% 28% 18% Nuke CCGT Coal Oil & Gas Italy Latin America Iberia Rest of Europe Nuke CCGT Coal Oil & Gas Total 2019E 2020 2
Slide 77: Production (TWh)
Production1 (TWh) Conventional generation By technology By geography 20% 25% 18% 24% 20% 18% 2019 22% 2022 25% 2019 2022 131.7 TWh 30% 106.0 TWh 131.7 TWh 40% 106.0 TWh 37% 15% 43% 16% 17% 30% Nuke CCGT Coal Oil & Gas Italy Latin America Iberia Rest of Europe Nuke CCGT Coal Oil & Gas Total 2019E 202
Slide 78: EGP
2020-2022 EGP
Slide 79: Consolidated capacity (GW)
EGP Consolidated capacity1 (GW) By technology By geography 2% 2% 13% 15% 7% 27% 2% 16% 52% 2% 33% 3% 2019 66% 2022 2019 2022 42.3 GW 1% 54.2 GW 42.3 GW 54.2 GW 25% 32% 34% 19% 31% 18% Italy Latin America North America Hydro Wind Solar & Other Geothermal Iberia Rest of Europe Africa, Asia & Oceania H
Slide 80: Consolidated production (TWh)
EGP Consolidated production1 (TWh) By technology By geography 4% 14% 2% 19% 2% 18% 45% 24% 6% 12% 2% 2019 63% 5% 2022 2019 2% 2022 12% 99.7 TWh 143.3 TWh 99.7 TWh 9% 143.3 TWh 27% 38% 49% 47% Italy Latin America North America Hydro Wind Solar & Other Geothermal Iberia Rest of Europe Africa, Asia & O
Slide 81: Consolidated additional capacity and pipeline (GW)
EGP Consolidated additional capacity and pipeline1 (GW) Consolidated additional capacity by technology COD 2020-2022 Pipeline by geography 1% Wind 2020-22 Solar COD 49% 11.62 GW 50% 2020 2021 2022 Total Hydro Italy - 0.9 0.4 1.3 Iberia - 1.0 1.9 2.9 Latin America - 0.4 4.6 5.0 Rest of Europe 0.0 0.0
Slide 82: Infrastructure & Networks
2020-2022 Infrastructure & Networks
Slide 83: Electricity distributed, End users, Smart meters
Electricity distributed, End users, Smart meters1 Infrastructure & Networks Electricity distributed (TWh) End users (mn) Smart meters (mn) 2019E 2020 2021 2022 2019E 2020 2021 2022 2019E 2020 2021 2022 Italy 226.1 226.5 226.8 227.1 31.5 31.5 31.5 31.6 31.4 31.4 31.4 31.6 Iberia 125.4 127.0 128.4 129
Slide 84: Current regulatory framework in Europe
Infrastructure & Networks Current regulatory framework in Europe1 Italy Iberia Romania WACC real pre tax 6.9% 5.9% 6.5% 2019 Next Regulatory 20242 2020 2024 Period Regulatory Period 4+4 6 5 Length (years) Metering Owned by Owned by Owned by Ownership DSO DSO DSO Smart meter Yes No Yes inclusion in R
Slide 85: Current regulatory framework in Latin America
Infrastructure & Networks Current regulatory framework in Latin America1 Argentina Brazil Chile Colombia Peru WACC real pre tax 10.0%2 12.5% 12.3% 11.79% 12.0%2 2019 Next Regulatory 2022 2023 Nov 2020 2020 2022 Period Regulatory Period 5 (Rio, Goias) 5 4 5 4 Length (years) 4 (Ceará, São Paulo) Meter
Slide 86: Retail
2020-2022 Retail
Slide 87: Power & gas customers and volumes
Power & gas customers and volumes1 Retail Power Gas Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc) 2019E 2022 2019E 2022 2019E 2022 2019E 2022 Italy 23.9 18.5 106.8 92.6 4.1 4.4 4.9 4.7 Free Market 9.3 18.5 67.3 92.6 4.1 4.4 4.9 4.7 Regulated Market 14.6 - 39.5 - - - - - Iberia 10.6 10.7
Slide 88: Power unitary margin and opex per client
Retail Power unitary margin and opex per client Power unitary margin Opex per client (€/MWh) 1 (€/cl) 2019E 2022 2019E 2022 Italy 21.2 20.2 27.1 22.9 Iberia 9.3 9.8 36.8 30.5 Latin America 3.2 3.0 14.3 12.5 Rest of Europe 6.4 10.4 13.3 11.3 1. Includes only power free market 87
Slide 89: Italian power market – forecast 2019
Italian power market – forecast 2019 Retail Customers (mn) Energy sold (TWh) 18.5 36.8 241.9 289.0 4.5 7.2 14.0 207.8 222.8 .18.3 2.8 29.5 15.5 47.0 34.0 15.0 66.1 32.0 Regulated Free Total Regulated Free Total Enel Enel ~80%1 ~50%2 ~84%1 ~27%2 market share market share Business ~41%2 Business ~24%2
Slide 90: Enel Group
2020-2022 Enel Group
Slide 91: Gross Capex (€bn)
Gross Capex1 (€bn) Enel Group Cumulated gross capex by GBL2 Cumulated gross capex by geography3 10%1% 4% 41% Networks 3% Italy 4% Retail 32% Iberia 7% Conventional generation Latin America 28.7 €bn 28.7 €bn Enel X 32% Rest of Europe EGP North America 44% 22% Africa, Asia & Oceania Global Generation
Slide 92: Asset development capex (€bn)
Asset development capex1 (€bn) Enel Group Cumulated asset development capex by GBL2 Cumulated asset development capex by geography3 27% Networks 15% 1% Italy 3% 29% 4% Retail 3% Iberia Conventional generation Latin America 17.2 €bn 17.2 €bn Enel X Rest of Europe EGP 32% North America 20% 66% Africa,
Slide 93: Asset management capex (€bn)
Asset management capex1 (€bn) Enel Group Cumulated asset management capex by GBL2 Cumulated asset management capex by geography3 2% Networks 3% Italy 30% Iberia 20% Retail 64% 36% Latin America 6.5 €bn Conventional generation 6.5 €bn Rest of Europe EGP North America 16% 29% Africa, Asia & Oceania Gl
Slide 94: Customers capex (€bn)
Customers capex1 (€bn) Enel Group Cumulated customers capex by GBL2 Cumulated customers capex by geography3 2% 5% Networks 1% Italy 12% Iberia 43% 5.0 €bn 64% Retail 31% 5.0 €bn Latin America Rest of Europe 24% Enel X North America 18% Africa, Asia & Oceania Global Generation Conventional Generation
Slide 95: Ordinary EBITDA
Ordinary EBITDA1 Enel Group By GBL2 By geography3 20.1 17.8 20.1 17.8 3% 4% Italy 43% Networks 3% 4% Iberia 33% 46% Retail 30% Latin America Conventional generation 21% 17% 21% Rest of Europe 18% 8% Enel X North America 1% 9% 2% EGP 39% 29% 42% Africa, Asia & Oceania 26% 2019E 2022 2019E 2022 Global
Slide 96: Baseload power price & production sold forward
Enel Group Baseload power price & production sold forward Baseload price 2019E 2020 2021 2022 Italy (€/MWh) 56.0 60.2 59.8 58.8 Iberia (€/MWh) 50.2 53.2 53.5 53.3 Production sold forw ard 2019E 2020 2021 2022 price % price % price % price % Italy (€/MWh)1 53.6 100% 59.0 70% 57.2 10% - - Iberia (€/MW
Slide 97: Environmental, Social and Governance annexes
2020-2022 Environmental, Social and Governance annexes
Slide 98: Sustainability Plan
2020-2022 Sustainability Plan
Slide 99: Sustainable business model, driving change through innovation
Sustainable business model, driving change through 2020-2022 Sustainability Plan innovation Enel public committment to United Nations (7.1, 4, 8, 13) 98 2
Slide 100: Focus on People Centricity
2020-2022 Focus on People Centricity
Slide 101: Engaging People we work with
Engaging People we work with Focus on People Centricity Plan actions 2019E 2020-2022 targets Gender - % of women in selection 42% women involved 50% women involved in processes1 in recruiting processes recruiting processes Promotion of digital skills’ dissemination 40% of people involved in digital
Slide 102: Engaging local Communities
Engaging local Communities Focus on People Centricity Plan actions 2019E 2020-2022 targets High-quality, inclusive and fair education 1.2 mn beneficiaries 2.5 mn beneficiaries in 20301 Access to affordable and clean energy 7.8 mn beneficiaries 10.0 mn beneficiaries in 20301 Employment and sustainabl
Slide 103: Focus on Corporate Governance
2020-2022 Focus on Corporate Governance
Slide 104: Corporate governance structure
Focus on Corporate Governance Corporate governance structure 78% Shareholders’ meeting Audit firm BoD’s composition 11% 11% Board of Statutory Board of Directors1 Auditors (3 members) Non executive Executive (9 members2) Indipendent Nomination and Control and Risks Related Parties Committee Corporat
Slide 105: Board composition
Focus on Corporate Governance Board composition Board of Directors Board of Directors’ diversity1 Chairperson P. Grieco 11% 33% (C) Corp. Governance & Sust. C. CEO and Age Gender F. Starace 67% 22% General Manager diversity diversity Corp. Governance & Sust. C 67% A. Antoniozzi Related Parties C. 57
Slide 106: Short-term variable remuneration
Focus on Corporate Governance Short-term variable remuneration1 Macro objective Objective Type of target Weight2 Entry (50%) Target (100%) Over (120%) Ordinary consolidated Profitability 40% 4.66 €bn 4.75 €bn 4.80 €bn Economic net income Cash and debt FFO/Consolidated net 30% 26.5% 27.3% 27.6% Finan
Slide 107: Long-term variable remuneration
Focus on Corporate Governance Long-term variable remuneration1 Macro objective Objective Type of target Weight4 Target (100%) Over I (150%) Over II (280%)5 Enel’s TSR Enel’s TSR Enel’s TSR from 100% from 110% Performance TSR2 50% to 110% of to 115% of > 115% of Market TSR Index TSR Index TSR Index P
Slide 108: Enel group's listed companies
Enel group’s listed companies1 Focus on Corporate Governance 70.1% 61.9% 57.3% 56.4% Chile Américas2 Russia 93.5% 99.1% 99.9% 100% 100% Enel Gx Chile Enel Dx Chile Enel Argentina Enel Brasil Enel Perú 92.6% 75.7% 83.2% 83.6% Pehuenche Enel Gx Costanera 95.9% Enel Dx Perú Enel Gx Perú Enel Dx São Pau
Slide 109: Focus on Innovation & Cybersecurity
2020-2022 Focus on Innovation & Cybersecurity
Slide 110: Innovation
Focus on Innovation & Cybersecurity Innovation Plan actions 2020-2022 targets 10 innovation hubs ~80 partnerships 5 innovation labs Implementation in the business of 60 projects with startups Promoting global Crowdsourcing 12 innovation partnership and upporting high-potential >400.000 solver commun
Slide 111: Cyber security
Focus on Innovation & Cybersecurity Cyber security Plan actions 2020-2022 targets 2.1mn Risky emails blocked1 (#) every day Coverage of web 100% of internet web applications exposed to applications protected internet with advanced Connections to dangerous 325K through advanced cyber security website
Slide 112: 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 113: Contact us
Contact us Contacts Email [email protected] Phone +39 06 8305 7975 Monica Girardi Channels Head of Group Investor Relations Website Mobile App Investor Relations team Enel.com Enel Investors Federico Baroncelli Francisco Basauri Serena Carioti Federica Dori Follow us Federica Pozzi Fabrizi