Enel Spa · MIL:ENEL
Enel Spa — Investor Day (November 2017)
167 slides from Enel Spa's investor day presentation, Nov 21, 2017
Slide 1: Strategic Plan 2018-20
Capital Markets Day Strategic Plan 2018-20 Francesco Starace CEO & General Manager
Slide 2: Agenda
Capital Markets Day Agenda Opening remarks Francesco Starace 2018-20 Strategic Plan Key Pillars Francesco Starace 2018-20 Strategic Plan Financials Alberto De Paoli Global Infrastructure & Networks Livio Gallo Global Renewable energies Antonello Cammisecra Global e-Solutions Francesco Venturini Glob
Slide 3: Enel today: evolution since 2014
Capital Markets Day Enel today: evolution since 20141 #1 private network operator globally #1 renewable operator 65 mn end users and 44 mn digital meters ~40GW managed capacity2 +4.5 mn end users +6 GW +8.4 mn smart +80% meters3 additional capacity 47 GW thermal capacity 20 mn free retail customer
Slide 4: Enel today: global and diversified operator
Capital Markets Day Enel today: global and diversified operator1 North & Central America Italy Iberia Europe & North Africa 51% 23% 15% 58% 43% 0.8 €bn 6.9 €bn 3.4 €bn 0.6 €bn 5% 45% 9% 21% 4% 32% 100% 16% 1% 18% 34% Subsaharian South America Africa & Asia 2017E Group EBITDA 5% 38% 47% 4.0 €bn 100 0
Slide 5: Updated organizational structure
Investor presentation Updated organizational structure L. Gallo A. Cammisecra E. Viale C. Machetti F. Venturini Global Global Global Global Global Infrastructure Renewable Thermal Trading e-Solutions & Networks Energies Generation Italy C. Tamburi J. D. Bogas Iberia Galvez Customers Best practic
Slide 6: Integrated model fit for digitalized, low carbon world
Capital Markets Day Integrated model fit for digitalized, low carbon world Cash flow generation Digital infrastructure platform Generation growth engine Global risk mitigation Leading geographic expansion Leading the energy transition Portfolio balancing and reliability Digital platform proposition
Slide 7: Delivery on strategic plan
Capital Markets Day Delivery on strategic plan
Slide 8: Delivery on strategic plan: financial targets
Capital Markets Day Delivery on strategic plan: financial targets 2015 actual 2016 actual 2017 target CAGR ✔ target Ordinary EBITDA (€bn) 15.0 15.2 15.0 15.5 ~2% ✔ ✔ Net ordinary income (€bn) 2.9 3.2 3.6 ~11% ✔ ✔ DPS (€/sh) 0.16 0.18 0.231 ~15% ✔ ✔ Pay-out 50% 55% 65% ~14% target target FFO/Net debt
Slide 9: Delivery on strategic plan: strategic pillars 2015-17
Capital Markets Day Delivery on strategic plan: strategic pillars 2015-17 Delivery 1 ✔ 1 €bn opex savings in 2017 in real terms Operational efficiency Maintenance capex down by over 10% 2 ✔ 16 €bn growth capex in the past three years Industrial growth 800 €mn 2017 growth EBITDA1 fully secured 3 ✔ Fr
Slide 10: Delivery: business drivers
Capital Markets Day Delivery: business drivers1 Networks Retail Renewables Thermal generation4 100% regulated EBITDA 15% regulated EBITDA2 65% quasi regulated EBITDA 60% quasi regulated EBITDA (€bn) (€bn) Large hydro (€bn) (€bn) 0.7% 14.7% 1.2% -17% CAGR CAGR CAGR CAGR 6 5.00 4.0 4.1 4.50 5 7.3 4.00
Slide 11: Delivery on active portfolio management
Capital Markets Day Delivery on active portfolio management 2015-17 active portfolio management (€bn)1 2017 Use of funds (€bn)1 6.3 5.8 0.5 Minority buy-out 1.5 2.6 1.6 Acquisitions 4.8 ~3.2 0.5 Growth capex Source of funds Use of funds 2015-16 2017E 80% of 2015-2019 plan completed 1. Impact on net
Slide 12: Delivery: Mexico BSO
Capital Markets Day Delivery: Mexico BSO Key figures Description and main drivers 1.7 GW capacity 0.4 MW operating assets Sale of majority stake to financial investors1 1.3 GW under construction 2.2 €bn asset value Equity IRR 11% 0.2 €bn capital gain Long term contracts expected in 2017 Stable cash
Slide 13: Delivery: positioning in a digitalized, low carbon world
Capital Markets Day Delivery: positioning in a digitalized, low carbon world CELG-D EnerNOC Demand Energy Distribution companies in Brazil (# customers, mn) #10 countries • Behind-the-meter storage market 10.8 6 GW demand 9.1 9.7 • 3 MW/9 MWh of installed capacity in response 8.2 5k customers USA an
Slide 14: Delivery: a sustainable strategy
Capital Markets Day Delivery: a sustainable strategy Enel commitments to the global SDGs Delivery 2017E 2015-17E1 ✔ 400,000 people by 2020 ~200,000 ~500,000 3 million people by 2020, mainly in ~400,000 1.7 million Africa, Asia and Latin America ✔ 1.5 million people by 2020 ~300,000 1.5 million < 350
Slide 15: Delivery: shareholders' remuneration
Capital Markets Day Delivery: shareholders’ remuneration EPS (€/sh) DPS (€/sh) 10%CAGR 0.35 20%CAGR 0.30 0.35 0.30 0.35 0.25 0.31 0.25 0.29 0.20 0.23 1 0.20 0.15 0.18 0.15 0.16 0.10 0.10 0.05 0.05 - - 2015 2016 2017 2015 2016 2017 Minimum DPS 0.21 Strategy has delivered strong earnings and dividend
Slide 16: 2018-20 strategic plan: Key pillars
Capital Markets Day 2018-20 strategic plan Key pillars
Slide 17: Sector trends
Capital Markets Day Sector trends Urbanization rate1 (%) Primary energy mix2 (‘000 Mtoe) Urbanization trend Decarbonization 13.7 14.1 90.0 0 16.0 0 80.0 0 By 2050, 6.3 bn people will live … 14.0 0 85 14% … 70.0 0 By 2040, ~40% of generation ~40% 12.0 0 in cities 60.0 0 78 10.0 0 50.0 0 63 will come
Slide 18: Sector trends
Capital Markets Day Sector trends Small scale PV and demand response Small scale PV (GW)1 Demand response (GW)1 Distributed generation and demand response will +1,279 +264 drive the increase in number of “prosumers” 1,387 319 330 .00 1,20 1.00 280 .00 Low cost and low-carbon technologies will allow
Slide 19: Integrated model fit for digitalized, low carbon world
Capital Markets Day Integrated model fit for digitalized, low carbon world Sector trends Enel positioning: 2020 targets Generation: 48 GW renewables, 39 GW thermal Decarbonization Specific CO2 emissions < 350 gCO2/KWheq Electrification 0.6 GW storage capacity Storage & Demand Response 10.7 GW demand
Slide 20: Strategic pillars
Capital Markets Day Strategic pillars Digitalization Customer focus Operational efficiency Industrial growth Group simplification & active portfolio management for a data-driven Company for more shared value Attractive shareholder remuneration Sustainable long-term value creation 19
Slide 21: Digitalization
Capital Markets Day Digitalization 2018-20 digitalization capex Key levers for digitalization Asset 13% 6% 5.3 €bn Customer Data People Cyber security driven Cloud 81% Platform Asset Customer People Agile Agile operating model maximizing speed and efficiency through optimal use of data 20
Slide 22: Customer focus: commodity retail
Capital Markets Day Customer focus: commodity retail Free customers1 (mn) Power sold in free market (TWh) Year +78% 2016 287 Total 2 Free customers growing in all countries sales 267 255 34.8 Total 35 244 production Liberalization in Italy: opportunity to 3.6 213 230 increase volumes and clients +33
Slide 23: Customer focus: e-Solutions 2020 targets
Capital Markets Day Customer focus: e-Solutions 2020 targets e-Industries e-Mobility e-Home e-City Public infrastructure Maintenance Demand Response Smart Lighting (GW generating revenues) (Public charging and repair (Light Points) stations installed) (Customer base) ~9 k >2mn 3mn >10GW >100% CAGR >
Slide 24: Operational efficiency
Capital Markets Day Operational efficiency Maintenance capex (€bn)1 Opex (€bn) Cash cost (€bn) 10 20 20 9 -20% 18 -3% 18 -7% 8 16 16 7 14 14 6 12 12 5 10 10 4 8 8 11.1 10.3 3 6 8.6 8.3 6 2 4 4 2.5 1 2.0 2 2 0 0 0 2017E 2020 2017E 2020 2017E 2020 Digitalization enables acceleration on operational eff
Slide 25: Industrial growth: 2018-20 capex plan
Capital Markets Day Industrial growth: 2018-20 capex plan Total gross capex (€bn) Growth capex by business line1 (€bn) Growth capex by geography1 (€bn) 24.6 14.6 14.6 25 24.1 13.8 13.8 14 0.6 0.8 14 0.7 0.7 0.5 +6% 0.8 95% 95% 12 12 3.7 20 5.3 13.8 14.6 10 10 Mature 15 8.3 1.7 markets 8 8.3 8 BSO
Slide 26: Industrial growth: operational targets by business
Capital Markets Day Industrial growth: operational targets by business Networks Retail Renewables Thermal generation End users (mn) Free customer base1 (mn) Managed capacity (GW) Installed capacity3(GW) Smart meters (mn) Power sold2 (TWh) Other renewables (GW) Smart meters 2.0 (mn) Large hydro (GW)
Slide 27: Group simplification & active portfolio management
Capital Markets Day Group simplification & active portfolio management Simplification Minority reduction From 69 to 53 # companies in South America Romania Delivery Sale of minority stakes in Electrogas and Peru Bayan To below 30 # companies in South America Chile integration of renewable assets and
Slide 28: Group simplification & active portfolio management
Capital Markets Day Group simplification & active portfolio management Current structure Post reorganization structure Rationale ~ 9 – 12 months Integration of renewable energy platform of assets in Chile 100% 61% ~ 61% and < 65% EPS accretion and Enel Enel 100% EGP EGP Chile Chile Latam(1) reducing
Slide 29: Group simplification & active portfolio management: the new plan
Capital Markets Day Group simplification & active portfolio management: the new plan 2017 program (€bn) 2018-20 program (€bn) 2018-20 use of funds (€bn) 4.00 6.00 ~4.7 3.50 5.00 Minority buy-out & 2.6 2.3 3.00 2.50 4.00 share buy back 0.5 ~3.2 2.00 3.00 1.5 Acquisition focused 2 on networks and e-
Slide 30: Communities and people
Capital Markets Day Communities and people Local communities (mn beneficiaries) Our people 2017E 20201 2020 Talent attraction and retention 2x High-quality, inclusive and fair 100% of people involved Appraise performance of education 0.5 0.8 From 99% of people appraised 0.4 people we work with2 95%
Slide 31: Innovation
Capital Markets Day Innovation Key highlights +2,300 startups scouted Moscow +100 active projects +30 startups scaled Madrid San Catania Tel Aviv 18 agreements Francisco with Venture Capital Funds 21 innovative partnerships globally Rio de Janeiro 4 Community Santiago (Blockchain, Storage, Drons, Au
Slide 32: Shareholder remuneration
Capital Markets Day Shareholder remuneration Dividend policy Minimum DPS (€/sh) +33% +17% NEW 0.3 0.28 0.25 65% 70% 0.2 50% 55% 0.21 0.18 0.15 0.1 0.16 0.05 2015 2016 2017 2018-20 2015 2016 2017 2018 DPS based on pay out 0.17 0.23 0.28 Confidence on strategy delivery and revised plan allows improved
Slide 33: Strategic Plan 2018-20: Alberto De Paoli - CFO
Capital Markets Day Strategic Plan 2018-20 Alberto De Paoli - CFO
Slide 34: 2018-20 strategic plan: Key financials
Capital Markets Day 2018-20 strategic plan Key financials
Slide 35: Enel today: diversified and resilient operator
Capital Markets Day Enel today: diversified and resilient operator 120 % 120 % 100 % 100 % 15% regulated ~15% Customers Customers1 16% Thermal Generation ~10% Merchant generation 10% 60% quasi regulated2 80% 80% 40% merchant Renewables 60% 27% 65% quasi regulated3 60% 35% merchant 40% 40% Regul
Slide 36: Delivery: financial targets
Capital Markets Day Delivery: financial targets Funds allocation for growth and shareholders’ remuneration 2015-17 (€bn) Net financial expenses on debt (€bn) 30. 0 6.3 Cost of gross debt Net financial expenses 25. 0 26.3 7.7 -14% 20. 0 20 29% 3.3 5.1% Cash 2.0 optimization 15. 0 12% 15.7 4.8% 10. 0
Slide 37: Enel transformation and 2020 targets
Capital Markets Day Enel transformation and 2020 targets Profitability & cash generation Leverage Returns 0.7 90% 4.5 0 27% 29% 31% 0.4 14% 12.3% 13.1% 14% >65% 80% 4.0 0 25% 27% 0.3 10.5% 10.8% 11.1% 0.6 64% 65% >65% >65% 12% 13% 13.0% 70% 3.5 0 0.3 0.5 30% 10% 12% 12.3% 60% 3.0 0 0.2 0.4 8% 11% 50
Slide 38: Integrated model fit for digitalized, low carbon world
Capital Markets Day Integrated model fit for digitalized, low carbon world Networks Renewables Customers Retail 4.7 €bn1 +20.42 8.3 €bn 0.8 €bn +73% 40.0 0 34.8 47.9 +7.8 GW 5% 35.0 0 30.0 0 20.1 32% 50 45 43.5 57% 25.0 0 20.0 0 15.0 0 10.0 0 40 5.00 35 4.0 - 30 2017E 2020E 14.6 25 14.6 14.6 # of fr
Slide 39: Digitalization
Capital Markets Day Digitalization 2018-20 cumulative digitalization capex 2018-20 cumulative benefits1 Gross Opex EBITDA Margin Plan 2017-19 Plan 2018-20 Asset 3.9 €bn 4.3 €bn 1.0 €bn (0.3) €bn 1.3 €bn 13% 6% 5.3 €bn Customer 0.7 €bn 0.7 €bn 0.2 €bn (0.2) €bn 0.4 €bn 81% People 0.1 €bn 0.3 €bn 0.0
Slide 40: Digitalization
Capital Markets Day Digitalization Networks Thermal generation2 Renewables2 Retail Networks automation % capacity with IoT % capacity with IoT Cost to serve reduction 65. 00 Smart meters 60. 00 120 .00 100 .00 90. 00 64% -30% 63. 00 100 .00 80. 00 50. 00 61. 00 +20mn 70. 00 95% 80. 00 59. 00 40. 00
Slide 41: Customer focus: global retail and e-Solutions
Capital Markets Day Customer focus: global retail and e-Solutions EBITDA (€bn) 6.0 Key drivers Key figures +13.9 mn power customers 5.0 +32% Growth of retail customer base worldwide +0.8 mn gas customers 4.0 3.3 3.0 Higher focus on corporate 33% increase in power volumes 2.5 0.4 0.3 3.0 customers in
Slide 42: Customer focus: global retail
Capital Markets Day Customer focus: global retail Power unitary margin EBITDA retail power and gas (€bn)1 Power sold in free market (TWh) in free market (€/MWh) 3.5 +16% +33% -% 12.0 0 2.9 10.0 0 ~12 3 8.00 ~12 2.4 0.2 250 .00 6.00 4.00 0.1 2.5 0.6 200 .00 234 2.00 0.4 > 70% - 2017E 2020 2 power 150
Slide 43: Customer focus: Italian retail
Capital Markets Day 250 Customer focus: Italian retail 200 Enel supply and demand balance 2017 Enel power sold Enel supply and demand balance 2020 (TWh) (TWh) 150 Market liberalization (TWh) Enel free 26% 30% 85 market share (vol.) 90. 00 80. 00 1.2 0 57 60 100 70. 00 60 1.0 0 60. 00 50. 00 0.8 0 40
Slide 44: Customer focus: Italian retail
Capital Markets Day Customer focus: Italian retail Power unitary margin EBITDA (€bn)1 Power sold in free market (TWh) in free market (€/MWh) 100% 100% B2B -40% +8% +42% 25.0 0 60% B2C 100 .00 20.0 0 90.0 0 85 15.0 0 ~22 ~21 10.0 0 80.0 0 5.00 2.1 2.1 30 2.0 60 70.0 0 2.0 - 60.0 0 2017 2020 50.0 0 B2
Slide 45: Customer focus: e-Solutions
Capital Markets Day Customer focus: e-Solutions Gross margin (€bn) Cumulated 2018-20 (€bn) Key highlights +2.5x 0.4 €bn EBITDA in 2020 3.00 2.8 1.00 2.50 2.4 0.4 0.80 1.0 2.00 >10 GW demand response 0.60 1.50 2.8 0.40 0.8 1.00 +300 k private, +9 k public charging stations 0.20 0.4 0.50 - - 2017E 202
Slide 46: Operational efficiency: delivery 2014-17
Capital Markets Day Operational efficiency: delivery 2014-17 Opex (€bn) Maintenance capex (€bn) 0.2 0.1 (1.0) (0.3) 9.3 8.6 8.3 (0.2) (0.1) (0.3) (0.5) 3.6 2.5 2014 CPI & Forex Growth Efficiency 2017E Perimeter 2017 old 2014 FX Perimeter Efficiency Connections 2017E target Completed efficiency plan
Slide 47: Operational efficiency: focus on opex
Capital Markets Day Operational efficiency: focus on opex Opex evolution (€bn)1 Opex by business3 -16% Networks -3% €/end user 50.5 42.4 2017E 2020 0.1 Renewables -9% 0.4 0.3 (1.2) k€/MW 38.8 35.2 8.6 2017E 2020 0.5 from 8.3 -4% digitalization Thermal Generation4 37.1 35.6 k€/MW 2017E 2020 -34% Reta
Slide 48: Industrial growth: capex and growth EBITDA reconciliation
Capital Markets Day Industrial growth: capex and growth EBITDA reconciliation 2017-19 total capex (€bn) 30 2017-19 cumulated growth EBITDA (€bn) 6 25 24.1 24.1 5 20.9 3.2 3.2 3.2 4.0 20 4 13.8 0.9 3.1 15 12.4 12.4 10.6 3 BSO capital BSO capital gains and gains and 10 O&M fees 2 O&M fees 1.8 5 7.2 1
Slide 49: Industrial growth: focus on growth capex and growth EBITDA
Capital Markets Day Industrial growth: focus on growth capex and growth EBITDA Growth capex by business line1 (€bn) 2018-20 cumulated growth EBITDA1 (€bn) +6% 14.6 +19% 13.7 4.0 3.6 14 0.6 0.8 +33% 0.8 0.7 3.5 3.12 12 0.8 +33% 0.6 3.0 10 < 0.1 0.1 2.5 8.3 -% 1.1 -% 8 8.3 2.0 1.1 6 BSO 3.4 BSO 3.2 1.
Slide 50: Industrial growth: focus on growth EBITDA
Capital Markets Day Industrial growth: focus on growth EBITDA 2018-20 growth capex Capex addressed by business By year1 Growth EBITDA by year2 (€bn) 3 2018 70% 2.5 2.3 35% 42% 2019 45% 1.7 53% 14.6 €bn 2 6.8 €bn 1.5 1.1 3.6 56% 1.8 cumulated 2020 27% 1 1.2 12% 0.6 1% 1% 0.5 0.5 0.5 0.5 0.5 0 In exec
Slide 51: Industrial growth: renewables, Build Sell & Operate model
Capital Markets Day Industrial growth: renewables, Build Sell & Operate model (BSO) 12 10 Capacity additions 2018-20 (GW) BSO model benefits (cumulative 2018-20) Rationale 8 0.7 Capital gain 0.6 0.7 >100 k€/MW from 80 K€/MW in previous 3.8 7.8 0.3 6 0.5 plan 0.4 1.3 Mexico 0.1 4 0.3 EBITDA cumulativ
Slide 52: Macro scenario: revised assumptions
Capital Markets Day Macro scenario: revised assumptions for commodities and prices 4.5 0% Electricity demand South America 70. 00 Italy power price (€/MWh) Spain power price (€/MWh) 70. 00 4.0 0% (change YoY) 65. 00 51.3 52.4 50.3 51.4 2.84% 65. 00 3.5 0% 60. 00 60. 00 3.0 0% 2.50% average forward a
Slide 53: What has changed
Capital Markets Day What has changed Macro assumptions (€bn) Managerial actions (€bn) Yearly impact on average EBITDA Yearly impact on average EBITDA Minorities buyout Higher efficiency and margins -0.1 Demand +0.1 HIGHER EARNINGS driven by higher digitalization capex ACCRETION Higher growth capex -
Slide 54: EBITDA evolution
Capital Markets Day EBITDA evolution 25. 0 22. 0 Ordinary EBITDA (€bn) 2017-20 ordinary EBITDA evolution (€bn) 23. 0 20. 0 +19% 21. 0 (0.2) 1.2 0.6 (0.7) 1.8 19. 0 18. 0 18.2 17. 0 18.2 17.2 15. 0 15.5 16. 0 16.2 13. 0 15.5 17.2 14. 0 16.2 11. 0 15.5 9.0 12. 0 7.0 10. 0 5.0 2017E 2018 2019 2020 2017
Slide 55: EBITDA evolution
Capital Markets Day EBITDA evolution1 2017-20 EBITDA evolution by business line and country (€bn) 0.3 (0.1) 0.5 0.1 0.5 1.4 18.2 15.5 2017E Global Global Thermal Global Retail e-Solutions Other 2020 Infrastructure Generation Renewable & Networks & Trading Energies 1.6 (0.1) (0.2) 0.1 0.8 0.4 18.2 15
Slide 56: Summary by business line
Capital Markets Day Summary by business line Networks Customers Renewables Thermal generation2 EBITDA CAGR1 +6% EBITDA CAGR1 +10% EBITDA CAGR1 +5% EBITDA CAGR1 +2% €bn 35. 00 10. 00 20. 00 8.0 0 €bn 30. 00 9.0 0 8.0 0 0.8 18. 00 16. 00 €bn 7.0 0 €bn 6.0 0 8.2 25. 00 7.0 0 14. 00 5.0 0 25.1 6.0 0 12.
Slide 57: Key financials: Group net income evolution
Capital Markets Day Key financials: Group net income evolution Group net ordinary income (€bn) 2017-20 group net ordinary income evolution (€bn) 7.0 6.5 9.0 +50% 8.0 5.4 6.0 0.8 (0.9) 5.5 7.0 2.7 (0.2) 0.1 (0.8) 6.0 4.8 5.0 5.0 4.7 5.4 4.1 4.5 4.0 3.6 4.0 3.6 3.0 3.5 2.0 3.0 1.0 2.5 0.0 2.0 2017E EB
Slide 58: Financial strategy
Capital Markets Day Financial strategy 2017 actions completed (€bn) Financial strategy for 2018-20 (€bn) 7 Yankee bonds issuance Bond refinancing 5.7 including green bonds program 1.25 Green bond issuance 2.7 Hybrid refinancing 0.5 EIB financing for Open Meter 9.4 Renegotiation of credit line 1.5 Li
Slide 59: Financial plan and strategy
Capital Markets Day Financial plan and strategy Gross and net debt (€bn) Net financial expenses on debt (€bn) -6% -12% 4.0 5.0% 3.5 4.8% 4.7% ~52.0 5.0 % ~50.8 ~50.8 ~49.1 4.5% 3.0 4.5% ~7.4 ~5.0 ~5.4 ~5.2 4.5 % ~6.8 ~6.0 ~5.9 ~5.6 2.5 2.0 2.4 2.3 4.0 % 1.5 2.2 2.1 3.5 % ~37.8 ~39.8 ~39.5 ~38.3 1.0
Slide 60: 2018-20 cumulated cash flow
Capital Markets Day 2018-20 cumulated cash flow (€bn) 60. 0 (3.3) 50. 0 (7.0) 51.7 (7.2) 40. 0 (6.7) 30. 0 (14.6) 34.2 20. 0 27.5 (3.3) 3.4 (12.3) 10. 0 13.0 0.7 (1.5) 0.0 Ordinary ∆ Provisions1 Income Financial FFO Maintenance FFO after Growth capex 2 Connections Proceeds form FCF Dividends Net FCF
Slide 61: Group targets
Capital Markets Day Group targets CAGR (%) 2017E 2018 2019 2020 2017-20 Ordinary EBITDA (€bn) 15.5 16.2 17.2 18.2 ~+6% Net ordinary income (€bn) 3.6 4.1 4.8 5.4 ~+15% Minimum dividend per share (€) 0.21 0.28 - - - Pay-out ratio 65% 70% 70% 70% +5 p.p. Implicit DPS (€) 0.23 0.28 0.33 0.37 ~+1
Slide 62: Global Infrastructure and Networks
Capital Markets Day Global Infrastructure and Networks Livio Gallo
Slide 63: Integrated model fit for digitalized, low carbon world
Capital Markets Day – Global infrastructure and networks Integrated model fit for digitalized, low carbon world Cash flow generation Digital infrastructure platform Global risk mitigation Solid backbone of our growth 62
Slide 64: Positioning and key figures
Capital Markets Day – Global infrastructure and networks Positioning and key figures Italy (85%)1 224 TWh distributed energy Key figures 2017 Argentina (16%) 1 31.5 mn end-users Iberia (42%) 1 18 TWh distributed energy Distributed energy (TWh) 441 110 TWh distributed energy 2.5 mn end-users 12 mn en
Slide 65: Regulatory scenario: Europe
Capital Markets Day – Global infrastructure and networks Regulatory scenario: Europe Country WACC Next regulatory cycle Highlights Italy 5.6% 2024 Totex in 2020 Regulatory framework Iberia 6.5%1 2020 Return revision in 2020 Smart meter Romania 7.7% 2019 roll-out Stable RAB of ~ 31 €bn Stable regulat
Slide 66: Regulatory scenario: South America
Capital Markets Day – Global infrastructure and networks Regulatory scenario: South America Country WACC Next regulatory cycle Highlights Improved scenario Argentina 12.5% 2022 in Argentina New Rio concession Brazil Rio/Celg 12.3% 2018 conditions from March 17 Brazil Cearà 12.3% 2019 RAB maximizatio
Slide 67: Digitalization
Capital Markets Day – Global infrastructure and networks Digitalization Pipeline model Platform model Processes convercence Digitalized processes Efficiency Products Disruptive efficiency Digital supply chain Excellency Technologies Lighthouse projects Networks automation Improve quality, efficiency
Slide 68: Digitalization
Capital Markets Day – Global infrastructure and networks Digitalization Degree of digitalization and capex plan 2018-20 (€bn) South Italy Iberia Romania Italy Iberia Romania South America Digitalization 2017E KPI America drivers Disruptive Digital process status1 3.1 2.8 2.9 2.5 0.2 0.1 0.1 0.1 Effi
Slide 69: Disruptive efficiency pilot: Digitaly
Capital Markets Day – Global infrastructure and networks Disruptive efficiency pilot: Digitaly Project key figures Main achievements Applied solutions Process digitalization Asset 4.00 Analysed and reviewed all core processes 3.50 3.00 4.1 • Advanced sensors end to end under operation and digital pe
Slide 70: Industrial growth: focus on smart meter roll out
Capital Markets Day – Global infrastructure and networks Industrial growth: focus on smart meter roll out Italy - Smart meter 2.0 (#mn) Iberia - Meters (#mn) 25 30 2° wave of digital transformation 25 +16 20 +1 20 15 15 55% completed by 2020 17.4 100% completed by 2018 12.3 10 10 11.2 5 5 1.4 0 0 20
Slide 71: Italy: Smart meter 2.0's key features and benefits
Capital Markets Day – Global infrastructure and networks Italy: Smart meter 2.0 ’s key features and benefits End-users Energy operators Replacement of 16 million meters with Quarter-hourly load curves Consumption profile new generation ones Flexible rates Increased awareness Enabling value
Slide 72: Efficiency
Capital Markets Day – Global infrastructure and networks Efficiency Cash cost evolution1 (€bn) Cash cost/end users nominal (€) Cash cost/end users real (€) -10% -13% -17% 4.5 0.2 (0.7) 4.0 69.0 69.0 1.2 60.1 57.3 1.0 3.3 3.0 2017 FX&CPI Efficiency 2020 2017 2020 2017 2020 Europe 66.1 -13.3% 57.3 Eur
Slide 73: Quality of Service and Network Losses
Capital Markets Day – Global infrastructure and networks Quality of Service and Network Losses Minutes of interruption Network Losses (%) 10 9 -5% 98% Italy 8 Chile 90% 7 89% Romania 6 83% Peru 82% 5 74% Spain 4 Brazil 3 64% Colombia 2 57% Argentina 1 0 2017 2018 2019 2020 2017 2020 Europe -4% South
Slide 74: CELG 2020 Project
Capital Markets Day – Global infrastructure and networks CELG 2020 Project Key perfomance indicators Project plan (€m) New MV lines (km) Minutes of interruption Total capex ~ 560 +277% -40% 250 .00 200 .00 1,80 0.00 1,60 0.00 RAB 2020 +21% vs 2017 1,40 0.00 150 .00 223 1,20 0.00 1,910 … 1.725 1,00 0
Slide 75: Industrial growth 2018-20
Capital Markets Day – Global infrastructure and networks Industrial growth 2018-20 Growth capex1 by area (€bn) Growth capex1 by technology (€bn) Key figures 48% 67.2 mn connected end users 54% 5% 5% 4.7 €bn 4.7 €bn Cumulative growth EBITDA1 1.7 €bn 25% 20% 36% 7% Smart grid Average time to EBITDA <
Slide 76: Financial targets
Capital Markets Day – Global infrastructure and networks Financial targets EBITDA by geograghy and capex 2017-20 (€bn) Capex by geography 2018-20 (€bn) Key trends 19% 8.7 Diversified geographical footprint 8.5 32% 7.9 0.2 0.2 7.3 0.2 0.2 2.5 2.7 5% 2.2 Stable regulatory framework 1.6 19% 11.3 with p
Slide 77: Global Renewable Energies
Capital Markets Day Global Renewable Energies Antonio Cammisecra
Slide 78: Integrated model fit for digitalized, low carbon world
Capital Markets Day – Global renewable energies Integrated model fit for digitalized, low carbon world Generation growth engine Leading geographic expansion Growth engine for the utility of the future 77
Slide 79: Presence and key figures
Capital Markets Day – Global renewable energies Presence and key figures Key figures 2017 Managed Capacity (GW) 37.1 40.5 Production (TWh) 85.1 92 Key financials (€bn) 2017 EBITDA 4.1 Opex 1.4 Maintenance capex 0.3 Countries of presence Countries with advanced stage of development Growth capex 3.4 C
Slide 80: 2017 key relevant events
Capital Markets Day – Global renewable energies 2017 key relevant events: a very competitive battleground March April May June July Sept. Oct. Nov. Nov. – Dec. Awarded Chile USA Cimarron Entry in to Entry into Starting up Chile Tender in Spain Tender in Spain BSO Mexico DISCO tender USA wind COD Ben
Slide 81: Diversified regulatory framework
Capital Markets Day – Global renewable energies Diversified regulatory framework Renewable auctions • High competition and number of participants • Price driven • All operators • Regulatory and local content risk • Commodity PPA with customers C&I1 • High competition and low number of participants •
Slide 82: Portfolio composition
Capital Markets Day – Global renewable energies Portfolio composition 2017 sales portfolio composition 2017 sales: focus on PPA Residual duration Offtaker Segmentation 63% 50% 6% 1% 11% ~85 TWh ~51 TWh ~51 TWh 2% 10% 93% 29% 35% Utilities & DisCos Incentivized >15 years 10-15 years Industrials Contr
Slide 83: Additional capacity
Capital Markets Day – Global renewable energies Additional capacity Evolution per year1 (GW) 4.0 Main achievements 3.5 3.0 Leadership in construction and plant commissioning 2.5 2.0 2.6 Increase in average size of plants 1.5 2.0 1.0 Construction across 5 continents 0.5 0.9 1.0 0.3 Implementation of
Slide 84: Digitalization strategy along plant lifecycle
Capital Markets Day – Global renewable energies Digitalization strategy along plant lifecycle Predictive maintenance through big data1 Digitalized and automated construction 75% 85% 55% ~40% 2 Historical 2017 2020 2018 2019 2020 Predictive Corrective Maintenance and lost production saving Reduction
Slide 85: Engineering and technological leadership
Capital Markets Day – Global renewable energies Engineering and technological leadership Wind LCOE1 evolution Solar LCOE1 evolution 120 .0% 120 .0% 110 .0% 110 .0% 100 .0% 100 .0% 100% 11% 100% 90. 0% 90. 0% 22% 1 8% 1 80. 0% 80. 0% 82% 70. 0% 70. 0% 12% 60. 0% 60. 0% 66% 50. 0% 50. 0% 40. 0% 40. 0%
Slide 86: Operational efficiency: key performance indicators
Capital Markets Day – Global renewable energies Operational efficiency: key performance indicators1 Hydro2 cash cost (k€/MW) Wind cash cost (k€/MW) Solar cash cost (k€/MW) Geothermal cash cost (k€/MW) 0.0 9 80. 0 0.0 9 100 .0 0.0 9 180 .0 0.0 8 80. 0 90. 0 70. 0 0.0 7 0.0 7 0.0 7 0.0 6 160 .0 60. 0
Slide 87: Asset value maximization: sample of projects in execution
Capital Markets Day – Global renewable energies Asset value maximization: sample of projects in execution Spain Chile USA1 Australia Russia Technology Wind/Solar Solar/Wind/Geo Wind Solar/Wind Wind Capacity (MW) 900 240 320 320 300 Capex (USD bn) 0.9 0.3 0.4 0.4 0.4 COD 2019 2023-24 2018 2
Slide 88: BSO and equity partnership
Capital Markets Day – Global renewable energies BSO and equity partnership 2017 Track record Towards the future Mexico – 2017 track record Worldwide dedicated team 20/80 with CDPQ & CKD 0.4 GW in operation 1.3 GW under construction Negotiation ongoing in new countries US – 2017 ongoing transaction 2
Slide 89: Industrial growth: 2018-20 capacity additions and growth capex
Capital Markets Day – Global renewable energies Industrial growth: 2018-20 capacity additions and growth capex Growth capex by geography Growth capex by technology Capacity additions1 by technology 34% 4% 15% 5% 2% 1% 10% 7% 63% 8.3 €bn 8.3 €bn 7.8 GW 6% 14% 72% 4% 63% Italy Iberia South America Eur
Slide 90: Industrial growth: pipeline and capacity additions
Capital Markets Day – Global renewable energies Industrial growth: pipeline and capacity additions 14 Capacity additions 2018-201 (GW) Pipeline by geography Pipeline by technology 12 10 ~60% already addressed 8 7.8 11% 1% 3% 36% 9% 1% 49% 6 3.3 3.8 4.5 21 GW 21 GW 4 0.9 1.3 1.4 2 3.2 4.0 36% 2.2 7
Slide 91: Financial targets
Capital Markets Day – Global renewable energies Financial targets EBITDA by geograghy and capex 2017-20 (€bn) Capex by geography 2018-20 Key trends +12% EBITDA influenced by asset rotation strategy 4.4 4.6 59% 4.1 4.2 0.1 0.1 0.1 3.7 0.1 0.6 3.6 0.5 Europe growth based on new 0.6 0.1 3.2 0.8 0.1 2.9
Slide 92: Global e-Solutions
Capital Markets Day Global e-Solutions Francesco Venturini
Slide 93: New brand
Capital Markets Day – Global e-Solutions New brand Our vision Our name A name that builds on the trust Create the new and scale of Enel and signals power economy distinctiveness and a new vision A new brand for a distinctive positioning on the market 92
Slide 94: Integrated model fit for digitalized, low carbon world
Capital Markets Day – Global e-Solutions Integrated model fit for digitalized, low carbon world Leadership in energy transition Digital platform proposition Customer empowerment Focusing on new customers’ needs through an asset light approach 93
Slide 95: Positioning and key figures
Capital Markets Day – Global e-Solutions Positioning and key figures Positioning1 (€mn) Key figures 2017 2017 Italy Europe & Revenues: ~300 North Africa Demand Maintenance Customer Revenues: ~10 GW sold 5.7 1.1 Response and repair4 base (#mn) Iberia Demand Side MW Customer North & 3 Repair5 1.3 Cent
Slide 96: Customer driven organization
Capital Markets Day – Global e-Solutions Customer driven organization Global e-Solutions e-Industries e-Mobility e-Home e-City (B2B) (B2C-B2B-B2G) (B2C) (B2G) Italy Global product lines Solutions and commercial Iberia Customers development Local stakeholders Geographies Marketing and positio
Slide 97: Our portfolio of solutions in the Global Product Lines
Capital Markets Day – Global e-Solutions Our portfolio of solutions in the 4 Global Product Lines e-Industries e-Mobility e-Home e-City Consulting and auditing Installation, maintenance Public charging network Smart lighting service and repair services Distributed generation Automated home Fiber opt
Slide 98: Gross margin
Capital Markets Day – Global e-Solutions Gross margin Gross margin by technology (€mn) Gross margin by geography (€mn) 2017 2020 600 .00 e-Industries 450 .00 400 .00 e-Home 500 .00 350 .00 400 .00 300 .00 300 .00 448 250 .00 200 .00 200 .00 150 .00 261 100 .00 28% 22% 100 .00 183 50. 00 98 27% - - 2
Slide 99: KPI figures
Capital Markets Day – Global e-Solutions KPI figures 2017 2020 2017 2020 Demand GW sold 5.7 10.7 1.9x Maintenance Customer base 1.1 2,1 1.9x Response and repair1 (#mn) Demand Side Customer base MW installed/year 3 224 75x Repair2 1.3 2.4 1.9x Management (#mn) Credit cards Credit cards (#mn) 0.9 1.9
Slide 100: e-Industries business model focused on flexibility services
Capital Markets Day – Global e-Solutions e-Industries business model focused on flexibility services Revenue streams Enabled by 2 platforms e-Industries Energy as a service Demand response EnerNOC Demand response + storage Demand side management / capacity Demand Energy peak shaving Resiliency and m
Slide 101: Focus on the Demand response business
Capital Markets Day – Global e-Solutions Focus on the Demand response business1 Commercial & industrial Grid operator / utility clients customers e-Industries Flexibility Enel digital Load management platform Payment Payment 14,000 C&I sites 5,700 MW sold Gross margin: 80 €mn 10 countries (~80% in U
Slide 102: e-Mobility business model
Capital Markets Day – Global e-Solutions e-Mobility business model Revenue streams Enabled by 3 technological layers 1 e-Mobility Energy Connected charging stations Charging stations 2 Installation services and O&M Smart charging Our smart software license to other charging station producers 3 V1G –
Slide 103: Italy: public charging installations plan
Capital Markets Day – Global e-Solutions Italy: public charging installations plan Enel public charging installation plan (# cumulated) Enel products portfolio e-Mobility Enel 90% market share of total market 14,000 3,000 10,500 2,000 7,000 5,000 1,000 11,000 2,700 500 8,500 200 6,000 4,500 2,500 20
Slide 104: e-Home business model
Capital Markets Day – Global e-Solutions e-Home business model Revenue streams Enabled by 3 factors Distributed generation e-Home (PV, storage, etc) Enel customer base Maintenance and repair Network of partners Home 2 Grid Flexibility Aggregation platform Financial services Create a new home ecosyst
Slide 105: Iberia and Colombia: business cases
Capital Markets Day – Global e-Solutions Iberia and Colombia: business cases1 Enel home services in Iberia Enel business in Colombia: Credito Facil Codensa Maintenance and repair of appliances Partnership with Colpatria bank providing credit cards to e-Home Typically periodic interventions our commo
Slide 106: e-City business model
Capital Markets Day – Global e-Solutions e-City business model Revenue streams Enabled by 3 competitive levers e-City Energy as a service Enel capillarity presence in cities Public lighting Demand response Enel distribution networks Demand side management Flexibility Enel digital platform Wholesale
Slide 107: Italy: Open Fiber plan
Capital Markets Day – Global e-Solutions Italy: Open Fiber plan Total plan A&B clusters roadmap C&D clusters plan 12 FTTH future proof technology 10 Users (mn) 5 lots Wave 1 271 cities 8 6 regions 9.5 mn households ~1.4 €bn funds available 3.9 €bn capex plan 6 7.0 4.6 mn households 5-6 years time to
Slide 108: Flexible distributed energy system
Capital Markets Day – Global e-Solutions Flexible distributed energy system Energy as a service value chain Advise Supply Optimize Flexibility Demand response Connected charging stations Demand side Smart charging management Vehicle 2 Grid Aggregation platform Home 2 Grid Best positioned to serve ne
Slide 109: Industrial growth 2018-20
Capital Markets Day – Global e-Solutions Industrial growth 2018-20 2018-20 growth capex by product line and by geography Key growth capex figures 2018-20 EBITDA by geography Energy efficiency and distributed generation projects and flexibility 43% 41% 32% services platform development 24% 0.8 €bn 5%
Slide 110: Global Thermal Generation
Capital Markets Day Global Thermal Generation Enrico Viale
Slide 111: Integrated model fit for digitalized, low carbon world
Capital Markets Day – Global thermal generation Integrated model fit for digitalized, low carbon world Portfolio balancing and reliability Efficiency through digitalization Maximizing value creation in residual asset life 110
Slide 112: Positioning and key figures
Capital Markets Day – Global thermal generation Positioning and key figures 2017 net production by technology1 2017 net production by geography1 Key figures 2017 Installed capacity1 (GW) 43 29% 27% 20% Net production (TWh) 144 19% 144 TWh 144 TWh Financials2 (€bn) 23% 29% EBITDA 1.5 53% Italy Cash c
Slide 113: Digital transformation: project status
Capital Markets Day – Global thermal generation Digital transformation: project status Digitally integrated smart plant – reference model Processes digital re-design Additive Mobile Predictive Wearables manufacturing application maintenance Overhaul Overhaul Daily Maintenance Planning Management Exe
Slide 114: Efficiency
Capital Markets Day – Global thermal generation Efficiency Cash cost evolution1 (€bn) Maintenance1 (€bn) Opex1 (€bn) 3.5 0 -19% -40% -13% 3.0 0 2.5 0 2.1 0.1 (0.5) 2.0 0 1.6 0.5 1.7 1.4 1.5 0 0.3 0.5 1.0 0 3.25 3.00 1.6 1.4 0.5 0 0.3 - 2017 CPI & Efficiency 2020 2017 2020 2017 2020 Forex Maintenance
Slide 115: Capacity strategy
Capital Markets Day – Global thermal generation Capacity strategy Key levers Installed capacity1 (GW) EBITDA per MW 2 (k€/MW) Spending allocation based -24% +40% on plant profitability 120 .0 100 .0 Portfolio optimization, leveraging 47.0 43.2 80. 0 on strategic positioning 35.9 60. 0 16.1 12.3 11.6
Slide 116: Capacity strategy: focus on coal
Capital Markets Day – Global thermal generation Capacity strategy: focus on coal 2018-20 environmental capex Capacity covered by environmental upgrade1 Coal fleet evolution (GW) 20. 00 -41% (3.8) 30% 11% 15. 00 (2.8) 5% 0.5 €bn 60% 10. 00 6.1 GW 15.9 29% 5.0 0 9.3 65% - Italy Iberia South America It
Slide 117: Environmental performance
Capital Markets Day – Global thermal generation Environmental performance New challenges @2020 Thermal Gen. Worldwide deployment of CO2 -5% best environmental practices Base year 2007 Emissions’ levels improvement through - 30% environmental investments NOx Base year 2010 SO2 - 30% Phasing out of 6.
Slide 118: Energy storage development: utility scale BESS
Capital Markets Day – Global thermal generation Energy storage development: utility scale BESS1 UK Tynemouth BESS 25MW/12.5 MWh UK US COD: February 2018 ~400 MW 75 MW Progress in construction: ~60% Italy ~60 MW Iberia ~120 MW Spain Litoral TGx + BESS South America ~50 MW BESS 20MW/11.6 MWh Australia
Slide 119: Financial targets
Capital Markets Day – Global thermal generation Financial targets1 EBITDA2 by geograghy and capex 2017-20 (€bn) Capex by geography 2018-20 (€bn) Key trends -7% Resilience to worsening scenario 1.5 1.4 1.4 32% 0.3 0.2 0.2 8% 1.2 0.2 3% Decommissioning program in 0.5 0.5 0.6 1.9 12% Italy reduces spen
Slide 120: Global Trading
Capital Markets Day Global Trading Claudio Machetti
Slide 121: Integrated model fit for digitalized, low carbon world
Capital Markets Day – Global trading Integrated model fit for digitalized, low carbon world Global portfolio optimization Integrated margin management Diversified global portfolio evolution leading to integrated margin optimization 120
Slide 122: Positioning and 2017 key figures
Capital Markets Day – Global trading Positioning and 2017 key figures Net production by technology Net power sales by destination Key figures 2017 23% 19% Net power sales (TWh) 319 6% 10% 10% 13% Net production (TWh) 255 11% 255 TWh 319 TWh 37% 17% Power purchased (TWh) 64 29% 25% Coal purchased (Mt
Slide 123: Role of energy management
Capital Markets Day – Global trading Role of energy management Energy management vs competitive landscape(€/MWh) Retail competitiveness Digitalization as a strategic enabler of continuous improvement and more sophisticated approaches Power & commodity responsiveness Centralization and integration of
Slide 124: The group's resilience to the volatility of commodity prices
Capital Markets Day – Global trading The group's resilience to the volatility of commodity prices Global exposure year 2018 Commodity price volatility generates significant margin variation January 2017 October 2017 200 Power (TWh) 105 60 100 Coal (Mton) -26 -8 0 -12 €mn Hedging activity -100 Gas (B
Slide 125: Forward sales Italy and Spain
Capital Markets Day – Global trading Forward sales Italy and Spain Italy 2017 Italy 2018 57 TWh 55 TWh Achieved 5% Achieved 25% 20% Price1 43 €/MWh Price1 43 €/MWh 35% 40% 100% 40% 40% 55% Expected Hedged Expected Hedged production production production production Spain 2017 Spain 2018 77 TWh 75
Slide 126: Forward sales South America
Capital Markets Day – Global trading Forward sales South America Chile Colombia 100% 100% 90% 100% 100% 70% 2017 2018 2020 2017 2018 2020 79 80 87 57 60 69 Peru Brazil 100% 100% 100% 100% 100% 90% 2017 2018 2020 2017 2018 2020 52 51 54 67 65 74 Hedged production Unhedged production - Average price (
Slide 127: Delivery on gas contract renegotiation
Capital Markets Day – Global trading Delivery on gas contract renegotiation Portfolio evolution (bcm, %) Price review impact (€bn) 29 30 32 0.86 0.91 3% 9% 13% 15% 17% 20% 65% 81% 84% 74% 64% 35% 19% 2018 2019 2020 2017-19 Old 2017-20 New Legacy1 To be contracted/spot US LNG + Tap Already negotiated
Slide 128: US LNG gas portfolio
Capital Markets Day – Global trading US LNG gas portfolio Portfolio evolution (bcm) LNG (€c/cm) 4.4 0.6 40 2.6 30 3.0 1.7 20 0.7 10 0.7 0.9 0.9 0 1 2 2017 2019 2020 Sabine Pass Corpus Christi Other HH JKM High price volatility enhances value of US LNG optionality 1. Henry Hub natural gas spot price
Slide 129: Financial targets
Capital Markets Day – Global trading Financial targets Gross Margin (€bn) Key drivers +12% Generation: enhanced results mainly due to renewables growth 13.9 13.0 12.3 12.3 Gas: increasing gross margin thanks to price review and portfolio optimization actions Power Retail: positive trend in power ret
Slide 130: Closing remarks
Capital Markets Day Closing remarks Delivered on all targets Continued excellent execution in strategic pillars Well positioned for digitalized, low carbon world Operating model driving long term shared value for all our stakeholders Increasing our financial targets, with dividend floor reflecting c
Slide 131: Annexes
Capital Markets Day Annexes CNet
Slide 132: 2018-20 strategic plan: Key financials Annexes
Capital Markets Day 2018-20 strategic plan Key financials Annexes
Slide 133: Assumptions: Commodities, prices, macroeconomics and FX
Capital Markets Day - annexes Assumptions: Commodities, prices, macroeconomics and FX 2017 2018 2019 2020 Scenario New Plan Old Plan New Plan Old Plan New Plan Old Plan New Plan Old Plan Brent $/bbl 53 48 57 52 60 55 65 - Coal $/ton 83 50 68 52 65 53 62 - Gas TTF €/MWh 17 14 16 15 16 16 17 - CO2 €/t
Slide 134: EBITDA targets by Country and Global Business Line
Capital Markets Day - annexes EBITDA1 targets by Country and Global Business Line2 (€bn) 2017 2018 2019 2020 Italy 6.9 7.0 7.4 7.8 Global Thermal Generation 0.1 0.1 0.1 0.3 Global I&N 3.5 3.5 3.7 3.7 Global Renewable Energies 1.1 1.2 1.2 1.3 Retail 2.0 2.0 2.1 2.1 e-Solutions 0.0 0.0 0.1 0.1 Service
Slide 135: EBITDA targets new vs old perimeter
Capital Markets Day - annexes EBITDA1 targets new vs old perimeter (€bn) Global Renewables Energies 2017 2018 2019 2020 Global Global Global Global Large Large Large Large EGP2 Renew able EGP2 Renew able EGP2 Renew able EGP2 Renew able Hydro Hydro Hydro Hydro Energies Energies Energies Energies Ital
Slide 136: Capex plan 2017-20
Capital Markets Day - annexes Capex1,2 plan 2017-20 (€bn) 2017 2018 2019 2020 Growth Maintenance Connections Growth Maintenance Connections Growth Maintenance Connections Growth Maintenance Connections Italy 0.6 0.9 0.4 1.2 0.8 0.4 1.1 0.8 0.5 0.9 0.7 0.5 Global Thermal Generation 0.1 0.1 - 0.0 0.1
Slide 137: Industrial growth: main drivers and projects
Capital Markets Day - annexes Industrial growth: main drivers and projects Infrastructure Renewable Thermal generation e-Solutions & Networks Energies 2.3 €bn capex 0.3 €bn capex 0.1 €bn capex +0.3 €bn capex Italy +16 mn digital meters 2.0 COD > 2020 Storage >+0.1 €bn EBITDA Stable RAB 0.9 €bn capex
Slide 138: Customer focus: retail in Iberia
Capital Markets Day - annexes Customer focus: retail in Iberia Power unitary margin EBITDA (€bn) Free power market (TWh) in free market (€/MWh) +7% +55% 10.0 0 9.00 8.00 7.00 ~8 6.00 5.00 4.00 ~7 ~6 3.00 2.00 +8% 1.00 - 0.6 2017 2020 100 .00 89 96 0.5 80.0 0 19.7 22.2 Cost-to-serve (€/customer) 0.4
Slide 139: Customer focus: retail in South America
Capital Markets Day - annexes Customer focus: retail in South America EBITDA (€bn) 2017 Total free market sales (TWh) Enel Free energy sold (TWh) 2017 2020 +50% Argentina 97% 3% 136 0.2 3% 5.0 0.20 Brazil 56% 23% 21% 572 3.8 9.7 0.18 5% 0.16 0.14 Chile 45% 8% 47% 74 6.8 13.9 0.12 0.15 19% 0.10 0.13
Slide 140: Group net income by currency
Capital Markets Day - annexes Group net income by currency 2017 2020 73% 72% 3.6 €bn 5.4 €bn 7% 11% 3% 8% 2% 8% 7% 5% 2% 2% EUR USD BRL EUR USD BRL CLP COP Other CLP COP Other 139
Slide 141: Retail: Italian power market
Capital Markets Day - annexes Retail: Italian power market Customers (mn) Energy sold (TWh) 350 .0 50. 0 Enel Enel 300 .0 226.6 market share1 282.6 40. 0 15.1 market share1 36.8 250 .0 23% 3.9 55% 7.3 30. 0 200 .0 10.1 199.4 21.8 42% 217.7 150 .0 20. 0 3.7 29.5 100 .0 56.0 27.2 18.3 49% 10. 0 50. 0
Slide 142: 2018-20 strategic plan: Key ESG Annexes
Capital Markets Day 2018-20 strategic plan Key ESG Annexes
Slide 143: ESG strategic pillars
Capital Markets Day - ESG annexes ESG strategic pillars Digitalization Customer focus Growth across low carbon technologies and services Assets optimization and innovation Engaging local communities Engaging the people we work with for a data-driven Company for more shared value Sustainable long-ter
Slide 144: Enel's plan pillars and backbones: cross-reference with SDGs
Capital Markets Day - ESG annexes Enel’s plan pillars and backbones: cross-reference with SDGs 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Growth across low carbon technologies & services Assets optimization Pillars and Innovation Engaging local communities Engaging the people we work with Enablers Cu
Slide 145: Growth across low carbon technologies and services
Capital Markets Day - ESG annexes Growth across low carbon technologies and services Plan actions Related targets/commitments +0.6 GW storage capacity Electrification, storage & demand response +5 GW demand response Development of renewable capacity and +7.8 GW renewable capacity1 reduction of therm
Slide 146: Assets optimization and innovation
Capital Markets Day - ESG annexes Assets optimization and innovation Plan actions Related targets/commitments +20.4 mn smart meters installed Large scale infrastructure innovation mostly in grid digitization, smart meters and charging 5.3 €bn digitalization capex stations +300k charging stations Dig
Slide 147: Engaging local communities
Capital Markets Day - ESG annexes Engaging local communities Plan actions Related targets/commitments 2x High-quality, inclusive and fair education 0.8 million people1 From 0.4 Access to affordable and clean energy mainly in Africa, Asia 3 million people1 and Latin America 2x Employment and sustaina
Slide 148: Engaging the people we work with
Capital Markets Day - ESG annexes Engaging the people we work with Plan actions Related targets/commitments 100% of people1 involved Appraise performance of people we work with1 99% of people1 appraised 95% of people1 interviewed (feedback) Survey corporate climate with a focus on 100% of people1 in
Slide 149: Environmental sustainability
Capital Markets Day - ESG annexes Environmental sustainability Plan actions Related targets/commitments Reduction of SO2 specific emissions -30% (vs 2010) Reduction of NOx specific emissions -30% (vs 2010) Reduction of particulates specific emissions -70% (vs 2010) Reduction of water specific consum
Slide 150: Digitalization and related risks: cyber security framework
Capital Markets Day - ESG annexes Digitalization and related risks: cyber security framework Plan actions Related targets/commitments Single strategy approach based on business 100% of internet web applications protected risk management through advanced cyber security solutions Business lines involv
Slide 151: Shareholders structure
Capital Markets Day - ESG annexes Shareholders structure Current shareholder’s 2017 Annual General Meeting: Quorum Corporate Governance in a nutshell structure1 Institutional investors account for 57% on Enel’s TSO and 60% in the latest Enel’s AGM 48.8% 59.0% No special power to Italian Government:
Slide 152: Focus on corporate governance structure
Capital Markets Day - ESG annexes Focus on corporate governance structure 78% Shareholders’ meeting Audit firm BoD’s composition 11% 11% Board of Statutory Executive Non - executive Board of directors 9 advisors 3 members members 1 Independent Nomination and Corporate governance and Control and risk
Slide 153: Board composition
Capital Markets Day - ESG annexes Board composition BoD’s members BoD’s Diversity1 P. Grieco Non ex (Chairperson) CGSC 11% 33% F. Starace Age Gender Executive 67% diversity 22% diversity A. Antoniozzi Independent 67% CGSC RPC Independent 41-50 51-60 61-70 Men Women C. Calari NCC RPC 22% 4 Independen
Slide 154: Focus on remuneration policy: short-term variable remuneration
Capital Markets Day - ESG annexes Focus on remuneration policy: short-term variable remuneration Short-term variable remuneration1 Related targets Strategic Pillars involved 40%2 • Entry point (50% premium) = 3.5 €bn Industrial growth Net Ordinary Income • Target (100% premium) = 2017 Group Guidance
Slide 155: Focus on remuneration policy: long-term variable remuneration
Capital Markets Day - ESG annexes Focus on remuneration policy: long-term variable remuneration Long-term variable remuneration1 Related targets Strategic Pillars involved 60%2 • Entry point (50% premium): Enel TSR >= 90% Index TSR Enel TSR vs Euro Stoxx Utilities index • Target (100% premium): Enel
Slide 156: 9M 2017 results Annexes
Capital Markets Day 2018-20 strategic plan 9M 2017 results Annexes
Slide 157: 9M 2017 consolidated results: Financial highlights
9M 2017 consolidated results Financial highlights (€mn) 9M 2017 9M 2016 ∆ yoy Adjusted Revenues 54,188 51,459 +5% Reported EBITDA 11,450 12,010 -5% Ordinary EBITDA1 11,306 11,896 -5% -3%4 Reported EBIT 7,217 7,689 -7% Ordinary EBIT 7,073 7,666 -8% Reported Group net income 2,621 2,757 -5% Group net
Slide 158: Ordinary EBITDA evolution
9M 2017 consolidated results Ordinary EBITDA evolution (€mn) -5% -3% (399) 333 142 (247) (481) 120 00.0 129 (178) 111 110 00.0 11,896 11,497 11,195 11,306 100 00.0 900 0.0 -200 weak resource 800 0.0 -130 gas MtM 700 0.0 600 0.0 -1% 500 0.0 (Net of perimeter) 400 0.0 300 0.0 1 2 3 9M 2016 One-offs 9M
Slide 159: Adjusted EBITDA by business
9M 2017 consolidated results Adjusted EBITDA by business (€mn) -3% (96) (6) 120 00 71 (165) (57) 129 (178) Retail 115 00 Retail 1,983 €mn 110 00 11,497 1,819 €mn 11,195 Renewables 105 00 -200 weak resource Renewables 2,898 €mn 100 00 -130 gas MtM 2,704 €mn Generation 950 0 Generation 1,350 €mn 1,208
Slide 160: Adjusted EBITDA by geography
9M 2017 consolidated results Adjusted EBITDA by geography (€mn) -3% 120 00.0 Italy 215 (479) Italy 5,035 €mn 115 00.0 133 (41) 2 40 (123) 129 (178) 5,238 €mn Iberia 11,497 Iberia 2,828 €mn 110 00.0 11,195 2,349 €mn South America South America 2,670 €mn 3,056 €mn 105 00.0 Europe & 100 00.0 Europe & N
Slide 161: Ordinary EBITDA matrix
9M 2017 consolidated results Ordinary1 EBITDA matrix (€mn) Global Generation Global Infrastructures Renew able Services Retail Total Total & Trading & Netw orks Energies & Other 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 Italy 178 405 2,649 2,670
Slide 162: Ordinary EBITDA matrix: new vs old perimeter
9M 2017 consolidated results Ordinary EBITDA matrix (€mn): new vs old perimeter Global Thermal Generation & Trading Global Renewable Energies 9M 2017 9M 2016 9M 2017 9M 2016 Global Global Global Global Global Global Therm al Therm al Renew able EGP Renew able EGP Generation Generation Generation Gen
Slide 163: Gross debt structure
9M 2017 consolidated results Gross debt1 structure Long term debt by currency After swap Interest rate Long term credit ratings composition Rating Outlook 56% 27% Standard & Poors BBB Positive 84% 47.6 €bn 2% 47.6 €bn 51.6 €bn Moody’s Baa2 Stable 10% 4% 1% 73% 4% 5% 4% 23% Fitch BBB+ Stable 4% 1%2%
Slide 164: Debt structure by instrument
9M 2017 consolidated results Debt structure by instrument (€bn) Central South North & Central Europe & North Sub-Saharan Debt by instrument Enel Spa EFI Italy Iberia Total Others America America Africa Africa & Asia Bonds 12.25 19.73 - - 0.06 3.59 - 0.15 - 35.78 Bank Loans 1.04 - - 4.51 0.95 2.26 0.
Slide 165: Debt maturity coverage split by typology
9M 2017 consolidated results Debt maturity coverage split by typology (€bn) 28.5 18.5 4.8 Available committed credit 13.3 lines1 9.9 23.7 Short Term2 3.9 Bank Loans and 3.8 4.2 1.4 2.9 Cash Others 5.2 Bonds 1.5 1.2 1.9 4.6 1.4 0.5 2.6 2.3 1.5 1.0 9M 2017 < 9M 2018 9M 2018 2019 2020 2021 After 2021 1
Slide 166: Disclaimer
Capital Markets Day 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 o
Slide 167: Contact us
Capital Markets Day Contact us Luca Passa Head of Group Investor Relations Elisabetta Ghezzi Investor Relations Holding Donatella Izzo Investor Relations Sustainability and Other Countries Email Marco Donati [email protected] Investor Relations Reporting and Corporate Governance Phone +39