Endesa S.a. · BME:ELE
Endesa — Investor Day (November 2016)
169 slides from Endesa's investor day presentation, Nov 22, 2016
Slide 1: Hecho Relevante: Enel Strategic Plan 2017-2019
D. Paolo Bondi Director General de Administración Finanzas y Control Madrid 22 de noviembre de 2016 De conformidad con lo establecido en el artículo 228 de la Ley del Mercado de Valores, Endesa, S.A. comunica el siguiente HECHO RELEVANTE Se remite la presentación que el accionista principal de Endes
Slide 2: Capital Markets Day Strategic Plan 2017-19
Capital Markets Day Strategic Plan 2017-19 November 22, 2016
Slide 3: Agenda
Capital Markets Day Agenda Opening remarks Francesco Starace 2017-19 Strategic Plan Key Pillars Francesco Starace 2017-19 Strategic Plan Financials Alberto De Paoli Global Infrastructure & Networks Livio Gallo Global Renewable Energies Francesco Venturini Global Thermal Generation Enrico Viale Globa
Slide 4: Enel today: global and diversified operator
Capital Markets Day Enel today: global and diversified operator1 40 €bn Regulated Asset Base 62 mn distribution end users 36 GW renewable capacity2 #1 in Italy, Spain, Chile, Peru Global leadership in #2 in Argentina, Colombia renewables 17.5 mn free retail customers 48 GW thermal capacity High
Slide 5: Enel today: global and diversified operator (EBITDA)
Capital Markets Day Enel today: global and diversified operator1 North & Central America Italy Iberia Europe 54% 54% 46% 19% 16% 0.8 €bn 6.6 €bn 3.5 €bn 0.6 €bn 5% 44% 23% 4% 27% 11% 100% 17% 19% 35% 2% Latin America 2016E Group EBITDA 3% 35% 46% 16% 3.6 €bn 15 €bn 24% 14% 48% Networks Renewables 28
Slide 6: Enel transformation: how are we changing
Capital Markets Day Enel transformation: how are we changing 2013 2016 More efficient 12.6 €bn Cash-cost 11.6 €bn -8% Greener 6.4 GW Renewable capacity1 10.9 GW +70% Investing for growth 2.4 €bn Growth capex 5.5 €bn2 +129% Improved cash generation 20% FFO/Net Debt 25% +5 p.p. 19% Net income/EBITDA 2
Slide 7: Enel transformation: delivery on group simplification
Capital Markets Day Enel transformation: delivery on group simplification 2H 2014 1H 2015 2H 2015 1H 2016 2H 2016 Post 2016 Iberia and Latam Latam restructuring Hydro assets in First phase of Further Separation Enel Green Power Separation Global Renewable Latam restructuring simplification integrati
Slide 8: Enel transformation: updated organizational structure
Capital Markets Day Enel transformation: updated organizational structure L. Gallo F. Venturini E. Viale C. Machetti Global Global Global Global Infrastructure Renewable Thermal Trading & & Networks Energies Generation Upstream Gas Italy C. Tamburi J. D. Bogas Iberia Galvez Customers Best practi
Slide 9: Enel transformation: rebranding
Capital Markets Day Enel transformation: rebranding 7
Slide 10: Delivery on strategic plan
Capital Markets Day Delivery on strategic plan
Slide 11: Delivery on strategic pillars so far
Capital Markets Day Delivery on strategic pillars so far 1 ✔ Operational efficiency -10% of cash costs achieved in 2016 vs 2014 2 ✔ 0.8 €bn 2016 growth EBITDA fully secured Industrial growth 90% of 2017 growth EBITDA already addressed 3 ✔ Completed simplification at holding level Group simplificati
Slide 12: Delivery on business 2014-16
Capital Markets Day Delivery on business1 2014-16 Networks Retail Renewables Thermal generation 100% regulated EBITDA 15-20% regulated EBITDA 75% regulated EBITDA 60% regulated EBITDA 6 Large hydro 2.50 4.5 4.2 7.4 5 2.00 7.0 2.5 4 1.50 1.9 3 1.8 1.9 3 1.00 1.5 6.9 2 0.50 1 0 - 2 2014 2016E 2014 201
Slide 13: A sustainable strategy
Capital Markets Day A sustainable strategy United Nations Sustainable Development Goals (SDGs) Enel commitments to the global SDGs 400,000 people by 2020 3 million of people, mainly in Africa, Asia and Latin America by 2020 1.5 million people by 20201 < 350 gCO2 /kWheq by 2020 (-25% base year 2007)
Slide 14: 2017-19 strategic plan: Key pillars
Capital Markets Day 2017-19 strategic plan Key pillars
Slide 15: Energy sector trend
Capital Markets Day Energy sector trend Final consumption by source1 (%) 0.8 Unitary capex2 (USD mn/MW) 130 % Urbanization rate3 (%) 0.7 2.4 -17% 110 % 0.6 -33% 90% 1.9 0.5 1.8 1.8 85% +11 p.p 28% 0.4 70% 78% 17% 1.8 1.4 66% 1.5 61% 63% 0.3 1.4 50% 14% 1.2 49% 16% 0.2 0.9 30% 0.1 15% 11% 10% 0.0 0.4
Slide 16: Strategic pillars revisited
Capital Markets Day Strategic pillars revisited Operational efficiency Industrial growth Customer focus Shareholder Digitalization remuneration Group simplification Active portfolio management 14
Slide 17: Digitalization
Capital Markets Day Digitalization 2017-19 digitalization capex (€bn) Key levers for digitalization Asset Efficiency through full digitalization of back office processes and systems 15% 4.7 €bn 2% Enrich products and services Customer People 83% Cyber security Cloud Deepen customer relationship and
Slide 18: Digitalization: assets, customers, people
Capital Markets Day Digitalization Asset Assets digitalization >75% end-users digitalized 70% GW digitalized Big Data & predictive maintenance 200 €mn efficiency Customer People Back office Asset Process Full digitalization of all back office Digital workflow processes and systems by 2018 increased
Slide 19: Digitalization: cyber security, cloud, platform
Capital Markets Day Digitalization Cyber security Cyber security Cloud Cloud Organization Cloud migration New dedicated unit Crash and back-up program Framework Technological update New security standard Automatic software improvement Platform Training Efficiency Higher people awareness Flexible lic
Slide 20: Operational efficiency
Capital Markets Day Operational efficiency Maintenance capex (€bn) Opex (€bn) Cash cost (€bn) 10 20 20 9 -7% 18 -9% 18 -9% 8 16 16 11.1 7 14 14 6 12 12 8.3 5 10 10 11.6 4 2.8 8 8 10.6 3 6 8.6 7.8 6 2 3.0 2.8 4 4 1 2 2 0 0 0 2016 2019 2016 2019 2016 2019 Digitalization enables acceleration on operati
Slide 21: Industrial growth: 2017-19 capex plan
Capital Markets Day Industrial growth: 2017-19 capex plan Total capex (€bn) Growth capex by business line (€bn) Growth capex by geography (€bn) 25 21.2 20.9 14 12.7 12.4 14 12.7 12.4 0.3 20 12 0.5 0.6 12 1.5 95% 0.8 95% 1.5 10 10 1.1 0.5 12.7 1.2 0.5 15 12.4 8 7.3 -29% 5.2 8 4.8 10 6 6 4.5 4 4 1.5
Slide 22: Industrial growth: networks
Capital Markets Day Industrial growth: networks 70. 0 End-users (mn) 600 Growth capex (€bn) 86. 0 Cash cost/end-user1 (k€) 550 84. 0 68. 0 5.8 €bn growth capex 500 80.4 82. 0 66. 0 450 +1.2 €bn vs. old plan 48.1 80. 0 400 46.8 44.2 64. 0 78. 0 41.6 64.0 350 3.8 €bn capex for digitalization 63.2 76.
Slide 23: Industrial growth: renewables
Capital Markets Day Industrial growth: renewables1 4 Renewable additional capacity2 (GW) 3.5 Ordinary EBITDA evolution3 (€bn) 3.5 7x 3 +80% 3 2.5 2.5 2.0 2 1.8 1.7 1.7 2 2.1 1.5 1.5 1.1 1 1.5 1 0.9 1.0 40% 0.5 60% 40% 0.5 35% 20% 0 0.3 0 2008 2013 2014 2015 2016 2008 2013 2014 2015 2016 Mercha
Slide 24: Renewables Build, Sell and Operate model
Capital Markets Day Industrial growth: renewables, Build, Sell and Operate model (BSO) Gross pipeline1 (GW) 35 Coverage ratio 5 Capacity additions (GW) 4.5 30 3x 4 36% 1% 25 3.5 2% 20 3 2.6 21.0 2.1 21 GW 2.5 15 0.4 2 1.5 1.7 6.7 10 61% 1 1.7 5 3.2 0.5 0.9 0 3.5 0 Wind Solar 2017-19 Gross 2016 201
Slide 25: Customer focus
Capital Markets Day Customer focus 70. 0 End-users and electricity distributed 600 80. 0 Free customers and volumes 380 Key drivers 550 293 70. 0 330 68. 0 500 267 Integrated energy management 447 60. 0 280 66. 0 425 450 50. 0 230 400 230 64. 0 40. 0 213 34.0 180 32.2 64.0 350 Merchant risk mitigati
Slide 26: Customer focus: retail EBITDA
Capital Markets Day Customer focus EBITDA retail (€bn) Key drivers Key figures 6.0 +20% +16.5 mn power customers 5.0 Growth of retail customer base worldwide +0.4 mn gas customers 4.0 3.0 Higher focus on corporate +50% increase in volumes 2.5 3.0 customers in Latam -11% reduction in unit margin 2.11
Slide 27: Customer focus: additional value creation
Capital Markets Day Customer focus: high potential for additional value creation Public lighting Design, installation and management of public lighting Current offering B2B, B2C, distributed generation storage + solar PV Traditional e-home Platform Consolidation in offering heat pumps, boilers, LED
Slide 28: 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) Consolidated capacity (GW) Large hydro (GW) 55. 0 48.1 40.0 0 50. 0 45.7 60.0
Slide 29: Group simplification
Capital Markets Day Group simplification Enel Green Power integration Latam restructuring: 1st phase Latam restructuring: 2nd phase Operational synergies through First step of restructuring completed Further simplification at country level large hydro integration Merger of Americas entities 55% redu
Slide 30: Active portfolio management
Capital Markets Day Active portfolio management 2015-19 program 2017-19 program Use of funds ~8 €bn 8.00 ~7.5 €bn 6.00 Share buy back 6 €bn 2.0 €bn 7.00 5.00 ~4.5 €bn & minority buy-out previous 6.00 plan 4.00 Acquisition focused 5.00 ~3 €bn 4.00 3.00 2.0 €bn on networks and 3.00 Organic renewable
Slide 31: Shareholder remuneration
Capital Markets Day Shareholder remuneration Dividend policy Minimum DPS (€/sh) +17% +12% NEW 65% 70% 70% 0.21 50% 55% 0.18 60% 65% 65% 0.16 0.20 2015 2016 2017 2018 2019 2015 2016 2017 55% 60% Implicit payout Confidence on strategy delivery and revised plan allows improved shareholder return 29 -
Slide 32: 2017-19 strategic plan: Key financials
Capital Markets Day 2017-19 strategic plan Key financials
Slide 33: Macro scenario: commodities and prices
Capital Markets Day Macro scenario: revised assumptions for commodities and prices Gas price - TTF (€/MWh) Coal price - API2 (USD/ton) CO2 (€/ton) 20. 00 28. 00 85. 00 71.4 18. 00 16.0 21.3 21.5 21.6 68.3 13.0 64.4 16. 00 75. 00 23. 00 65. 00 14. 00 11.0 12. 00 18. 00 10. 00 55. 00 8.0 0 13. 00 16.3
Slide 34: EBITDA evolution
Capital Markets Day EBITDA evolution 2017-19 cumulated EBITDA evolution (€bn) (2.4) 0.5 1.3 49.2 49.0 (1.3) 0.7 1.0 2017-19 Scenario Active Energy Efficiency Retail Regulatory 2017-19 previous plan portfolio margin margin new plan management optimization Managerial actions offsetting weaker scenario
Slide 35: EBITDA evolution by business
Capital Markets Day EBITDA evolution 2016 EBITDA 2019 EBITDA 60% 10% Regulated 75% 90% quasi-regulated 46% 16% 15 €bn 17 €bn 17 €bn 10% 75% 28% Regulated 25% 75% Regulated quasi-regulated quasi-regulated Regulated / quasi-regulated Networks, Renewables, Retail Networks Renewables Thermal genera
Slide 36: Enel transformation and 2019 targets
Capital Markets Day Enel transformation and 2019 targets Profitability & cash generation Leverage Returns 0.7 90% 4.5 0 30% 0.4 12% 10.4 10.5 12% 12% 80% 4.0 0 25% 0.3 % % 0.6 11% 11% >60% >60% 70% 3.5 0 20% 0.3 0.5 50% 60% 3.0 0 0.2 11% 12% 11% 10% 0.4 10% 50% 2.5 0 0.2 10% 0.3 40% 2.0 0 2.5x 2.5x
Slide 37: Digitalization: cumulative benefits
Capital Markets Day Digitalization 2017-19 cumulative benefits1 2017-19 cumulative digitalization capex Margins Opex EBITDA Asset 3.9 €bn 0.9 €bn (0.2) €bn 1.1 €bn 15% 4.7 €bn 2% Customer 0.7 €bn 0.2 €bn (0.2) €bn 0.4 €bn 83% People 0.1 €bn - (0.1) €bn 0.1 €bn Asset Customers People 1.1 €bn (0.5) €b
Slide 38: Operational efficiency
Capital Markets Day Operational efficiency Maintenance capex (€bn) Opex (€bn) Cash cost (€bn) 10 20 20 9 -7% 18 -9% 18 -9% 8 16 16 11.1 7 14 14 6 12 12 8.3 5 10 10 11.6 11.2 10.8 4 2.8 8 8 10.6 3 6 8.6 8.3 8.0 7.8 6 2 3.0 2.9 2.8 2.8 4 4 1 2 2 0 0 0 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017
Slide 39: Operational efficiency: focus on opex
Capital Markets Day Operational efficiency: focus on opex Opex evolution1 Opex by business3 -4% Networks -9% €/end user 49.5 47.7 2016 2019 Renewables -21% 0.6 0.1 (0.5) k€/MW (1.0) 39.5 31.1 8.6 2016 2019 -6% 0.5 €bn from 7.8 Thermal digitalization Generation4 45.0 42.2 k€/MW 2016 2019 -17% Retail
Slide 40: Industrial growth: focus on growth EBITDA
Capital Markets Day Industrial growth. focus on growth EBITDA 2017-19 growth capex by business 2017-19 cumulated growth EBITDA Growth EBITDA by year (€bn) 37% 3 2.6 42% 6% 27% 2.5 5% 1.9 2 12.4 €bn 55% 4 €bn 1.4 3% 1.9 45% 1.5 1% 1.3 15% 1 0.8 47% 17% 0.5 0.8 0 Networks Renewables Networks Renewable
Slide 41: Industrial growth: capex in execution
Capital Markets Day Industrial growth: focus on capex in execution 2017-19 growth capex In execution by geography In execution by business By year By COD1 2% 12% 2017 53% 2017 41% 5% 26% 54% 43% 2018 31% 12.4 €bn 6.6 €bn 6.6 €bn 53% 2018 27% 10% 2019 17% 42% 45% 2% 2019 20% >2019 11% 2% 4% In execut
Slide 42: Focus on existing renewables portfolio
Capital Markets Day Industrial growth: focus on existing portfolio in renewables1 3.5 3.5 Existing portfolio EBITDA (€bn) Cash generation (€bn) Key drivers 3.0 3.0 Average unitary capex >2 €mn/MW on existing installed capacity 2.5 2.5 2.0 0.1 2.1 2.0 2.0 2.1 (0.8) 1.5 1.5 Average EBITDA/MW €0.15 1.
Slide 43: Renewables Build Sell & Operate model
Capital Markets Day Industrial growth: renewables, Build Sell & Operate model (BSO)1 0.9 12 0.8 10 Capacity additions 2017-19 (GW) BSO model benefits Rationale 0.7 Average unitary capex 1.4 €mn/MW 0.6 8 0.5 6 3.2 6.7 0.4 Average increase of 4 0.3 200 bps on project return 3.5 0.2 2 0.1 Net income a
Slide 44: Customer focus: retail margin and cost to serve
Capital Markets Day Customer focus Free customers & power unitary margin Cost to serve (€/customer) EBITDA retail (€bn) 80. 0 120 70. 0 70. 0 6.0 70. 0 100% 60. 0 Italy 60. 0 Iberia +20% 100 5.0 60. 0 75% 50. 0 50. 0 80 4.0 50. 0 40. 0 -13% 40. 0 -7% 2.9 3.0 40. 0 34.0 60 3.0 2.5 2.7 32.2 30. 0 30.
Slide 45: EBITDA evolution
Capital Markets Day EBITDA evolution Ordinary EBITDA (€bn) 2016-19 ordinary EBITDA evolution (€bn) 25. 0 22. 0 23. 0 20. 0 +15% 21. 0 19. 0 1.0 (0.4) 18. 0 17. 0 1.6 17.2 16. 0 17.2 15. 0 16.2 13. 0 15.0 15.5 14. 0 15.0 11. 0 9.0 12. 0 7.0 10. 0 5.0 2016 2017 2018 2019 2016 Growth Efficiency Active
Slide 46: EBITDA evolution by business line and country
Capital Markets Day EBITDA evolution 2016-19 EBITDA evolution by business line and country (€bn) 0.6 (0.5) 0.7 0.4 1.0 17.2 15.0 2016 Global Global Thermal Global Retail Active portfolio 2019 Infrastructure Generation Renewable management & Networks & Trading Energies & other 1.6 0.1 (0.4) 0.7 0.2 1
Slide 47: Summary by business line
Capital Markets Day Summary by business line Networks Retail Renewables Thermal generation EBITDA CAGR1 +4.7% EBITDA CAGR1 +7.2% EBITDA CAGR1 +3.3% EBITDA CAGR1 +2% 35. 00 18. 00 20. 00 8.0 0 18. 00 16. 00 7.0 0 30. 00 16. 00 14. 00 6.0 0 25. 00 14. 00 12. 00 5.0 0 12. 00 20. 00 13.3 10. 00 15. 00 2
Slide 48: Group net income evolution
Capital Markets Day Key financials: Group net income evolution Group net ordinary income (€bn) 2016-19 group net ordinary income evolution (€bn) 7.0 9.0 6.5 8.0 +47% 6.0 7.0 5.5 2.1 0.5 (0.6) 6.0 (0.1) 0.1 (0.5) 4.7 5.0 5.0 4.1 4.5 4.4 4.0 4.7 3.6 4.0 3.0 3.2 3.5 3.2 2.0 3.4 3.0 1.0 2.5 2.0 0.0 2016
Slide 49: Financial strategy
Capital Markets Day Financial strategy 2015-16 actions completed Financial strategy for 2017-19 Bonds repayment for ~8 €bn Bond refinancing for ~12.4 €bn including green bonds program Liability management for ~3.5 €bn Subsidize financing for ~1.2 €bn Emerging market funding for ~2.4 €bn Increasing f
Slide 50: Financial plan and strategy
Capital Markets Day Financial plan and strategy Gross and net debt (€bn) Net financial expenses on debt (€bn) -1% -12% 5.0% 4.0 4.7% 3.5 5.0 % ~49.2 ~49.5 ~49.5 ~48.5 3.0 ~6.5 ~6.5 4.5 % ~7.0 ~6.0 2.5 ~5.0 ~5.0 ~5.0 ~5.0 2.5 2.4 4.0 % 2.3 2.0 1.5 2.2 3.5 % ~37.2 ~38.0 ~38.0 ~37.5 1.0 3.0 % 0.5 - 2.5
Slide 51: 2017-19 cumulated cash flow
Capital Markets Day 2017-19 cumulated cash flow (€bn) 60. 0 ~(3.5) - 50. 0 ~(7.0) ~49.0 40. 0 ~(7.0) ~(8.6) 30. 0 ~31.5 ~(11.9) 20. 0 ~22.9 ~(10.3) 10. 0 ~11.0 ~2.5 ~4.0 ~0.7 0.0 Ordinary ∆ Provisions1 ∆ NWC Income Financial FFO Maintenance FFO after Net FCF Dividends Net FCF Cash-in Minority EBITDA
Slide 52: Group targets
Capital Markets Day Group targets CAGR (%) 2016 2017 2018 2019 2016-19 Ordinary EBITDA (€bn) 15.0 15.5 16.2 17.2 ~+5% Net ordinary income (€bn) 3.2 3.6 4.1 4.7 ~+14% Minimum dividend per share (€) 0.18 0.21 - - ~+22% Pay-out ratio 55% 65% 70% 70% +15 p.p. FFO/Net Debt 25% 26% 27% 30% ~+5 p.p
Slide 53: Global Infrastructure and Networks
Capital Markets Day Global Infrastructure and Networks
Slide 54: Networks: positioning and key figures
Capital Markets Day Positioning and key figures Italy (85%)1 224 TWh distributed energy Key figures 2016 Argentina (18%) 1 31.5 mn end-users Iberia (42%) 1 19 TWh distributed energy Distributed energy (TWh) 425 2.5 mn end-users 106 TWh distributed energy 12 mn end-users End users (mn) 62 Brazil (8%)
Slide 55: Regulatory scenario: Europe
Capital Markets Day Regulatory scenario: Europe Italy 5.6% 2017 WACC Iberia 6.5%1 real pre-tax Romania 7.7% Italy 2024 Next regulatory cycle Iberia 2020 Romania 2019 Regulatory frameworks 40% of Group EBITDA RAB ~ 32 €bn already set safe and stable stable over the plan Long term stability 53 1. Nomi
Slide 56: Regulatory scenario: Latam
Capital Markets Day Regulatory scenario: Latam Argentina 12.5% Chile 10% 2017 WACC Brazil Ampla 11.4% Colombia 13.7%1 real pre-tax Brazil Coelce 12.3% Peru 12% Argentina 2017 Chile 2017 Next regulatory cycle Brazil Ampla 2018 Colombia 2017 Brazil Coelce 2019 Peru 2018 Argentina Brazil (Ampla) RAB eq
Slide 57: Infrastructure digitalization
Capital Markets Day Infrastructure digitalization Italy Iberia Latam Romania Degree of digitalization Technologies(AS-IS) Italy Iberia Latam Romania 0.4 1.1 0.2 Basic Smart meter 100% 75% Pilots 5% Automated primary 100% 100% 95% 95% substations 1.7 0.1 Intermediate Customers/Remote control 260 960
Slide 58: The industrial rationale of network digitalization
Capital Markets Day The industrial rational of network digitalization RES Integration: Power requested to HV operator Italy Quality of service Improvement: Best case Italy GW 30 GW 650 k connections 140 .3 128 distributed generation 29 to prosumers Smart metering SAIDI1 -66% 30 120 .3 €/end users -4
Slide 59: Efficiency
Capital Markets Day Efficiency Cash cost evolution (€bn) Cash cost/end users nominal (€) Cash cost/end users real (€) 8.0 0 120 120 7.0 0 -1% 100 -4% 100 -12% 6.0 0 5.0 0 4.7 0.4 (0.5) 4.7 80 80 76.1 72.9 76.1 4.0 0 1.7 1.6 60 60 67.2 3.0 0 40 40 2.0 0 3.1 3.1 20 20 1.0 0 - 0 0 2016 CPI & Efficiency
Slide 60: Efficiency – quality of services
Capital Markets Day Efficiency – quality of services Minutes of interruption % Losses Europe % Losses Latam 10 9 -4% -15% 100.0% 8 7 95% 10 6 9.8 85% 5 9.6 4 84% 9.4 3 9.2 2 67% 9 1 62% 0 8.8 2016 FCT 2016 2017 2017 2018 2018 2019 2019 2016 2019 2016 2019 Italy / Iberia Chile / Colombia Brasil (Coel
Slide 61: Industrial growth 2017-19
Capital Markets Day Industrial growth 2017-19 Growth capex by area Growth capex by technology Key figures 38% 32% + 2 mn connected end users 5.8 €bn 21% 5.8 €bn Cumulative growth EBITDA 2.2 €bn 31% 37% 36% 5% Average time to EBITDA < 2 years Smart grid & E-mobility Italy Iberia Romania Latam Connect
Slide 62: Focus on smart meter roll out
Capital Markets Day Industrial growth: focus on smart meter roll out Italy n. 2G meters (mn) 25.0 +12.0 Latam n. meters (mn) 4.0 +1.7 3.5 20.0 3.0 2.5 15.0 2.0 10.0 1.5 38% completed by 2019 5.0 0.1 12.1 18% completed by 2019 1.0 0.5 0.1 1.8 - - 2016 2019 2016 2019 +3.2 +1.2 Iberia n. meters (mn) 20
Slide 63: Enel Open Fiber plan
Capital Markets Day Enel Open Fiber plan First cities under coverage Roll-out plan Milestones 3 Metroweb cities close to completion Milan (Milan, Bologna and Turin) 20 cities open to commercialization Padova by end 2017 Turin Venezia Works already started in other 10 cities Bologna Genova Firenze Pe
Slide 64: Acquisition and merger of Metroweb into Enel Open Fiber
Capital Markets Day Acquisition and merger of Metroweb into Enel Open Fiber Corporate structure Rationale Accelerated fiber deployment 50% 50% Leverage on Metroweb Holdco industrial know-how Coverage of all largest cities One stop platform form telco operators Enel Open Fiber 30% + Metroweb Lower r
Slide 65: M&A
Capital Markets Day M&A Areas of interest Customer base (mn) Key drivers Brasil Leverage current Enel positioning and technical skills Advanced Stage ~2 USA Partnerships to decrease execution risk Deep Dive ~23 Iberia Review consolidation trend in fragmented countries Other OECD Early Development ~5
Slide 66: Networks financial targets
Capital Markets Day Financial targets EBITDA and total capex (€bn) Italy, Iberia: distribution tariff reduction, partially offset by growth projects and cost reduction +14% 2017 – 0.3 €bn Latam: regulation improvement in Argentina (RTI) and Ampla Crash program in Brazil Romania: distribution tariff
Slide 67: Global Renewable Energies
Capital Markets Day Global Renewable Energies
Slide 68: Renewables: positioning and key figures
Capital Markets Day Positioning and key figures Old Large Key figures 2016 perimeter hydro Capacity1 (GW) 35.7 10.9 24.8 Production (GWh) 92.4 37.4 55.0 Old Large Key financials (€bn) 2016 perimeter hydro EBITDA 4.2 2.0 2.2 Opex 1.4 0.8 0.6 Maintenance capex 0.4 0.2 0.2 Countries of presence Countri
Slide 69: The outlook for renewables
Capital Markets Day The outlook for renewables Investments Decoupling between installations and investments Solar Solar costs down 90% since 2009 despite market oversupply Performance improvement coupled Wind with repowering opportunity Cost of lithium-ion cells have plunged from Storage $1,000/kWh
Slide 70: Equipment value maximization
Capital Markets Day Equipment value maximization 1.2 Wind turbine cost by delivery date & LCOE1 evolution 60. 0 Solar equipment cost2 by delivery date & LCOE1 evolution 65 1.2 60 1.01 55. 0 1.1 1.03 50. 0 1.0 55 1.0 50 0.93 45. 0 0.8 0.71 46 43 -30% -10% 48 41 1 45 0.9 40. 0 39 1 37 0.6 40 35. 0 0.8
Slide 71: Managing complexity
Capital Markets Day Managing complexity Project cost composition1 1.2 Key levers for cost optimization 3-5% Innovation and strategic partnerships Development 1.0 100% through flexible co-development agreements 0.8 44-47% Design-to-value to increase reliability, Capex 0.6 production and minimize cost
Slide 72: Engineering and technological leadership
Capital Markets Day Engineering and technological leadership Wind LCOE1 evolution Solar LCOE1 evolution 120 .0% 120 .0% 110 .0% 110 .0% 100 .0% 100 .0% 90. 0% 100% 15% 90. 0% 100% 14% 1 1 80. 0% 10% 80. 0% 15% 75% 70. 0% 70. 0% 60. 0% 60. 0% 71% 50. 0% 50. 0% 40. 0% 40. 0% 2014 Market Enel 2019 2014
Slide 73: Operational efficiency: key performance indicators
Capital Markets Day Operational efficiency: key performance indicators1 80. 0 Hydro cash cost (k€/MW) 0.0 9 80. 0 Wind cash cost (k€/MW) 0.0 9 100 .0 Solar cash cost (k€/MW) 0.0 9 180 .0 Geothermal cash cost (k€/MW) 0.0 8 75. 0 90. 0 0.0 7 0.0 7 0.0 7 0.0 6 160 .0 70. 0 5.0% 70. 0 5.0% 80. 0 4.0% 0.
Slide 74: Asset value maximization: in execution capacity returns
Capital Markets Day Asset value maximization: in execution capacity returns Brazil South Africa Mexico Peru USA Technology Wind / PV Wind Solar PV Wind / PV / Hydro Wind Capacity (MW) 1,300 800 1,000 326 1,000 Production (GWh) 3,800 3,000 2,250 1,200 4,100 Capex (USD bn) <2 <1.1 <0.9 <0.4 <
Slide 75: Industrial growth: 2017-19 capacity additions
Capital Markets Day Industrial growth: 2017-19 capacity additions 8.0 8.0 7.0 7.0 Pipeline by geography Consolidated capacity additions1 (GW) BSO capacity additions (GW) 6.0 6.0 23% 5% 5.0 5.0 6% 4.0 4.0 0.5 15% 0.2 21 GW 3.0 3.5 3.0 1.8 3.2 3% 2.0 2.8 2.0 48% 1.0 1.0 1.4 0.0 0.0 Italy Iberia Latam
Slide 76: Engineering and Construction
Capital Markets Day Engineering and Construction Construction capacity1 2013-19 (GW) Average projects size 2013-19 (MW) 2.5x 10x 200 .0 2x 2.3 2.1 190 1 165 150 .0 1 38% 46% 100 .0 0.9 100 70 80 62% 54% 50. 0 100% 20 0.0 2013-15 2016 2017-19 2013-15 2016 2017-19 Consolidated BSO Wind Solar
Slide 77: Focus on Build Sell and Operate model
Capital Markets Day Industrial growth: focus on Build Sell and Operate model Track record: disposals 2014-16 Enel positioning BSO rationale ~2.3 €bn cash in Strong and solid pipeline Accelerating pipeline valorization Valorization of BD E&C ~1.4 GW of asset On time and on budget projects delivery an
Slide 78: 2017-19 capacity additions and growth capex
Capital Markets Day Industrial growth: 2017-19 capacity additions and growth capex Capacity additions1 by technology Growth capex by technology Growth capex by geography 35% 21% 23% 6% 8% 5% 2% 15% 6% 3.5 GW 5.2 €bn 11% 5.2 €bn 3% 60% 57% 48% Italy Iberia Wind Solar Hydro Geo Wind Solar Hydro Geo La
Slide 79: Renewables financial targets
Capital Markets Day Financial targets EBITDA and total capex (€bn) Europe: price increase partially offset green certificates expiration in Italy Latam: growth in Brazil and Chile +10% 2017 – 4.2 €bn North & Central America: assets deconsolidation - BSO Africa & Asia: strong growth due to installed
Slide 80: Global Thermal Generation
Capital Markets Day Global Thermal Generation
Slide 81: Thermal generation: positioning and key figures
Capital Markets Day Positioning and key figures 2016 net production by technology1 2016 net production by geography1 Key figures 2016 Installed capacity (GW) 44 24% 28% 24% 21% Net production (TWh) 142 142 TWh 142 TWh Financials (€bn) 24% 27% EBITDA 1.2 52% Cash cost 2.4 Coal CCGT Oil & Gas Italy Ib
Slide 82: Positioning – highlights by region
Capital Markets Day Positioning – highlights by region Countries Key drivers Strategy Italy Flat demand Enhancing plant flexibility Iberia Capacity market expected in Italy Evaluating asset rotation opportunities Strong competitiveness Decommissioning plans Russia Demand growth with different rates
Slide 83: Digital transformation: project status
Capital Markets Day Digital transformation: project status Reference Model Benefits IoT Industrial Energy O&M Environment IoT industrial Services Logistics Logistics Safety Safety Security Security Efficiency & and Energy Optimization Environment services E_Mobility O&M efficiency Injuries reduction
Slide 84: Efficiency
Capital Markets Day Efficiency Maintenance capex1(€bn) Opex1 (€bn) Cash cost1 (€bn) 1.0 4.0 0.9 -33% 3.50 -27% 3.5 -29% 0.8 3.00 3.0 0.7 2.50 2.5 0.6 0.6 2.4 2.00 0.5 2.0 0.5 1.50 1.8 2.0 2.0 0.5 0.4 1.7 1.5 0.3 0.4 1.6 1.5 0.2 1.00 1.3 1.0 0.50 0.5 0.1 - - - 2016 2017 2018 2019 2016 2017 2018 2019
Slide 85: Capacity strategy
Capital Markets Day Capacity strategy 120 Key levers Installed capacity1 (GW) EBITDA per MW 2 (k€/MW) 100 Spending allocation based -39% +36% 80 on plant profitability 53.4 60 Asset rotation opportunities, 43.9 leveraging on strategic positioning 21.0 32.7 12.4 40 ~45 7.2 ~34 16.2 15.4 ~33 14.1 20 E
Slide 86: Futur-e
Capital Markets Day Futur-e 23 13GW Power Plants total power to be involved decommissioned Two riqualified plants: Porto Marghera and Assemini 11 GW already shut-down 5 Calls for projects processes in 2016 and further 3 in 2017 Two sale process in advanced stage Internal requalification for logistic
Slide 87: Operational performance
Capital Markets Day Operational performance Availability CCGT start up time1 CCGT minimum load2 (%) (min) (% nominal load) +5% 240 .00 100 % 220 .00 88% 89% 90% 200 .00 220 86% 80% 180 .00 60% 160 .00 140 .00 40% 48% 120 .00 100 .00 27% 20% <20% 80. 00 100 0% 60. 00 2016 2017 2018 2019 2016 2017-19
Slide 88: Environmental performance
Capital Markets Day Environmental performance New challenges @2020 Thermal Gen. Best technologies assessment worldwide for CO2 -5% environmental performances improvement Base year 2007 Constant emissions’ levels reduction through - 30% investments in Italy, Spain, Chile, Colombia NOx Base year 2010
Slide 89: Thermal generation financial targets
Capital Markets Day Financial targets EBITDA1 and capex2 (€bn) Investments in coal environmental improvements +8% especially in Italy, Iberia and Chile, sustained by internal profitability 1.4 1.3 1.3 1.2 Decommissioning program in Italy impacting non 1.2 1.1 recurrent spending throughout the Busine
Slide 90: Global Trading
Capital Markets Day Global Trading
Slide 91: Trading: positioning and 2016 key figures
Capital Markets Day Positioning and 2016 key figures Net production by technology Net power sales by destination Key figures 2016 24% 19% Net power sales (TWh) 321 10% 9% 12% 12% Net production (TWh) 267 11% 321 TWh 267 TWh 35% 14% Power purchased (TWh) 54 29% 25% Coal purchased (Mt) 36 Hydro Nuclea
Slide 92: Delivery on gas contract renegotiation
Capital Markets Day Delivery on gas contract renegotiation Price review impact (€bn) Portfolio evolution (bcm, %) 3.0 2.5 25 26 26 100 % 3% 5% 14% 18% 2.0 80% 22% 1.3 1.5 60% 37% 1.0 0.7 1.0 40% 83% 1.0 73% 0.5 20% 45% 0.6 0.0 0% 2016-19 old 2016-19 new 2017 2019 2021 Already negotiated To be negoti
Slide 93: US LNG gas portfolio
Capital Markets Day US LNG gas portfolio Portfolio evolution (bcm) Typical long term LNG contracts exposure 4.3 5.0 4.5 4.0 0.5 1 Commodity Flexibility 3.5 No “take or pay” 3.0 2.5 2.9 obligation 2.0 1.4 2 Shipping 1.5 0.7 1.0 0.5 0.5 0.7 0.9 0.9 0.0 3 Liquefaction No flexibility 2017 2019 2021 Sabi
Slide 94: Group Energy management
Capital Markets Day Group Energy management Integration and optimal management of “Integrated management” of generation market risk as “core mission” of Global portfolio with retail operations at country level Trading Business Line Energy management integration with Enel Portfolio integration, lever
Slide 95: Group energy management: gross margin
Capital Markets Day Group energy management Gross margin breakdown Gross margin €bn 13.0 12.8 2016 74% 2% 24% 12.6 12.4 ~12.6 ~12.6 12.2 12.0 2015 77% 1% 22% 11.8 ~12.1 11.6 11.4 2014 82% 2% 16% 11.2 11.0 2014 2015 2016 Generation Trading Retail 1 Capturing benefits from natural hedging along the va
Slide 96: Group Energy management – profit at risk 2017
Capital Markets Day Group Energy management – profit at risk 2017 New additional Not yet included other perimeter possible benefits of ~65% netting of the EGP extra-Italy perimeter ~35% Aggregated profit at Netting Consoilidated PAR Aggregated PAR Netting 1 Consolidated PAR 2 risk (PAR) new perimete
Slide 97: Forward sales Italy and Spain
Capital Markets Day Forward sales Italy and Spain Italy 2016 Italy 2017 62 TWh 59 TWh Regulated / Achieved Regulated / Achieved quasi regulated 10% quasi regulated 5% 30% Price1 46 €/MWh 35% Price1 42 €/MWh Price driven Price driven 100% vs. plan vs. plan 60% 60% 60% Spread driven Spread2 ~0 €
Slide 98: Forward sales Latam
Capital Markets Day Forward sales Latam Chile Colombia 100% 100% 100% 90% 90% 75% 2016 2017 2019 2016 2017 2019 79 76 80 54 58 64 Peru Brazil 100% 100% 100% 100% 100% 85% 2016 2017 2019 2016 2017 2019 55 53 53 54 53 65 Hedged production Unhedged production - Average price (USD/MWh) 96
Slide 99: Trading financial targets
Capital Markets Day Financial targets Gross Margin (€bn) +4% Generation: Stable overall results, with absolute results in reduction due to asset rotation 2017 – 12.1 €bn Power Retail: Positive trend in power retail activities in all regions 12.6 13.1 Gas: Reduction of gas margin due to one-off benef
Slide 100: Italy
Capital Markets Day Italy CNet
Slide 101: Italy: positioning and key figures
Capital Markets Day Positioning and key figures 2016 EBITDA 2016 number of customers Key figures 2016 Total Free Distributed energy (TWh) 224 customers customers 2% RAB (€bn) 20 26% End users (mn) 31.6 17% 17% 2% 6.6 €bn 36% Customers (mn) 30.4 64% 30.4 mn 10.9 mn 83% Net production1 (TWh) 62.2 53%
Slide 102: Regulatory topics
Capital Markets Day Regulatory topics Networks Retail Generation 1Q 2016 Starting January 2017 1H17 auctions / Jan-18 delivery Transitory regime “simil-tutela”: Capacity market: new scheme to promote on-going consultation on the New regulatory period for customers switching from final scheme to be a
Slide 103: Retail: Italian power market
Capital Markets Day Retail: Italian power market Customers (mn) Energy sold (TWh) 350 .0 50. 0 300 .0 223.4 282.5 40. 0 13.7 36.7 250 .0 3.6 7.3 30. 0 199.7 1 200 .0 23.0 10.1 1 219.9 3.7 150 .0 20. 0 29.4 100 .0 59.1 10. 0 19.3 23,7 50. 0 20.2 38.9 62.6 0.0 0.0 Regulated Free Total Regulated Free T
Slide 104: Retail: Italian gas market
Capital Markets Day Retail: Italian gas market Customers (mn) Gas sold (bcm) 25. 00 50. 00 45. 00 20. 00 1.4 40. 00 19.7 35. 00 15. 00 30. 00 27.9 1 25. 00 1 10. 00 21.1 20. 00 43.7 15. 00 5.0 0 10. 00 15.8 5.0 0 .00 .00 Residential Business Total Residential Business Total Growing Enel market share
Slide 105: Retail: Enel positioning and track record
Capital Markets Day Retail: Enel positioning and track record 70. 0% 04 03 12% 58. 0 Enel power customers (mn) 04 EBITDA evolution (€bn) 16% EBIT evolution (€bn) 10% 60. 0% 03 50.9% 08% 49.3% 48. 0 8.6% 5.7% 03 11% 50. 0% 02 06% 03 4.1% 38. 0 40. 0% 06% 04% 30.8 30.7 30.8 30.4 02 1.8 02 1.7% 02% 30.
Slide 106: Retail: power market liberalization
Capital Markets Day Retail: power market liberalization Pre liberalization Transitory period Full liberalization Until end 2016 January 2017 to July 2018 From July 2018 2 separated brands for Regulated customers free Regulated market customer base regulated and free market to switch to free market s
Slide 107: Retail: Enel business evolution
Capital Markets Day 250 Retail: Enel business evolution 200 04 Energy sold (TWh) – Unitary Margin index1 04 Commodity business EBITDA2 (€bn) 150 Market liberalization +6% 03 100 75 03 100 02 02 1.8 1.9 1.9 1.9 94 50 01 82 52 56 01 0 00 2016 2017 2018 2019 2016 2017 2018 2019 Free power customers (mn
Slide 108: Supply and demand balance
Capital Markets Day Supply and demand balance 2016 (TWh) 2019 (TWh) 70. 00 62 100 .00 94 90. 00 Regulated 10% 52 60. 00 64 80. 00 50. 00 70. 00 40% 30% Regulated 1% Business Price driven 60. 00 40. 00 57% Price driven 50. 00 39% 30. 00 Business 40. 00 60% 30. 00 60% Mass Market 20. 00 Spread dri
Slide 109: Digitalization: operations and customer data
Capital Markets Day Digitalization: operations and customer data Internal processes Customer data Main targets at 2019 Accomplished results Accomplished results -50% process lead time Bad debt management Campaign automation Digital training 100% digitalized Forecasting based automation Dunning proce
Slide 110: Digitalization: customers engagement and new services
Capital Markets Day Digitalization: customers engagement and new services Customer relantionship Development of new product and services Main targets at 2019 5.0 Achievements Achievements 4.5 Digital platform members Contacts: new website and co-browsing 4.0 3.5 (mn customers) Sales and post sales:
Slide 111: Operational efficiency
Capital Markets Day Operational efficiency 35. 0 33. 0 Cost to serve (€/customer) Cost to acquire -3% 31. 0 140 29. 0 120 100 -13% 27. 0 80 25. 0 Sales 60 113 110 40 23. 0 (€/activated customer) 20 0 21. 0 2016 2019 19. 0 23 17. 0 20 20. 0 15. 0 18. 0 16. 0 -18% 14. 0 2016 2019 12. 0 Marketing 10. 0
Slide 112: New services addressing all customer needs
Capital Markets Day New services addressing all customer needs 400 Additional services EBITDA (€mn) Current offering Key drivers 350 300 >5x Solid growth on existing platform Public Lighting 250 Traditional VAS Consolidation and development on: 200 170 distributed generation, energy appliances 150
Slide 113: Italy financial targets
Capital Markets Day Financial targets EBITDA and capex (€bn) 2017-19 Cash flow generation (€bn) +14% 14 8.0 7.0 7.5 12 13.3 3.7 6.8 7.1 6.0 6.6 10 5.0 8 9.6 2.7 4.0 3.0 6 6.9 4 2.0 2.0 2.3 2.1 1.0 1.9 2 0.0 0 2016 2017 2018 2019 FFO Maintenance FFO after Net growth Total EBITDA Capex capex maintenen
Slide 114: Iberia
Capital Markets Day Iberia CNet
Slide 115: Iberia: positioning and key figures
Capital Markets Day Positioning and key figures1 2016E EBITDA 2016E Power and gas customers Key figures 2016 Capacity (GW) 22.8 19% 16% 47% RAB (€bn) 11.2 11% 18% 11.1 mn 1.5 mn 3.5 €bn Customers (mn) 12.6 Power Gas 53% 82% Net production (TWh) 73 54% Financials (€bn) EBITDA 3.5 Networks Renewables2
Slide 116: Regulatory scenario
Capital Markets Day Regulatory scenario Social tariff Renewables Current financing considered discriminatory according to Supreme Court rules. Parameters for the 2nd regulatory semi-period to be 2014-16 contributions to be reimbursed. defined Wide consensus on social tariff amendment. A proposal Nex
Slide 117: Retail: Spanish power market description
Capital Markets Day Retail: Spanish power market description1 Customers (mn) Energy sold (TWh) 28.6 223 262 30. 0 15.3 250 .00 25. 0 1.3 1.8 200 .00 20. 0 14.0 169 169 150 .00 15. 0 13.3 26.8 0.5 100 .00 10. 0 39 54 5.0 12.8 50. 00 93 39 .00 0.0 Regulated Free Total Regulated Free Total Residential
Slide 118: Retail: Spanish gas market description
Capital Markets Day Retail: Spanish market description1 :Gas 10. 00 Customers (mn) Gas sold (bcm) 9.0 0 22.4 8.0 0 0.1 7.7 18.7 7.0 0 7.6 6.0 0 1 5.0 0 1 4.0 0 3.0 0 2.0 0 1.0 0 .00 3.7 Residential Business Total Residential Business Total First non incumbent player in Spain 1. 2016 figures on conve
Slide 119: Retail: customer base and unitary margin evolution
Capital Markets Day Retail: customer base and unitary margin evolution Power market1 Gas market2 EBITDA evolution3 (€bn) 120 .00 +6% 90% 100 .000 +13% 90% 1.20 00 +14% 80% 80% 110 .00 90.0 00 1.00 00 70% 70% 107 109 100 .00 103 105 60% 80.0 00 60% 0.80 00 90.0 0 50% 70.0 00 78 79 50% 0.60 00 40% 73
Slide 120: Digitalization as a driver for efficiency and VAS
Capital Markets Day Digitalization as a driver for efficiency, quality of service and VAS Key drivers Leverage Cost to serve (€/customer)1 Accelarate use of electronic bill (e-factura) to 16 -7% achieve digital engagement and reduce postal 15 service cost 14 14.7 3.7 mn digital customers in 2019
Slide 121: Digitalization: new services
Capital Markets Day Digitalization: new services 2016 VAS Margin breakdown Key drivers VAS Margin €mn Maximize current business +122% 7% (~2.7 million VAS contracts portfolio in ~ 60 €mn 66% 2016) 200 27% ~200 Portfolio evolution and development of 150 new VAS 100 Maintenance Alliance Equipment ~90
Slide 122: Iberia financial targets
Capital Markets Day Financial targets EBITDA and capex (€bn)1 2017-19 Cash flow generation (€bn) +9% 4.0 3.5 3.8 8.0 2.0 3.0 3.5 3.4 3.6 2.5 6.0 2.2 2.0 3.8 1.5 1.0 1.5 1.4 0.5 1.2 1.3 0.0 2016 2017 2018 2019 FFO Maintenance FFO after Net FCF capex maint. growth EBITDA Capex capex capex Strong cash
Slide 123: Latin America
Capital Markets Day Latin America
Slide 124: Latam: positioning and key figures
Capital Markets Day Positioning and key figures1 2016 EBITDA by technology 2016 EBITDA by country Key figures 2016 Installed capacity (GW) 19 3% 14% 14% 7% RAB (€bn)2 8.4 17% 35% Distributed energy (TWh) 80 3.6 €bn 28% 3.6 €bn End users (mn) 15.6 48% 35% Key financials (€bn) 2016 EBITDA 3.6 Argentin
Slide 125: Latam: production and end users by country
Capital Markets Day Positioning and key figures1 2016 Net production by technology 2016 End users by country 7% Hydro 9% 16% Argentina Renewables 19% Brazil 28% 67.4 TWh 51% Oil & Gas 15.6 mn Chile CCGT 12% Colombia 8% 44% 6% Coal Peru 2016 Energy sold by country 2016 Net production by country 13% A
Slide 126: Latam restructuring
Capital Markets Day Latam restructuring Yesterday Today Further simplification at country level Current n. of companies in Chile (23) and Americas (43) for a total number of 66 60.6% 60.6% 51.8% Enel Enel Target to reduce below 30 Chile Americas 99.1% 60.0% the number of companies Endesa Chilectra E
Slide 127: Latam restructuring: efficiencies
Capital Markets Day Latam restructuring: efficiencies1 €mn 20162 2019 OLD 2019 NEW NEW vs OLD OPEX 115 279 296 +6% SG&A 24 47 69 +47% Cash Pooling 4 14 14 - Tax 45 45 45 - Total 188 385 424 10% Improving efficiency 2019 target 1. Not including renewables 125 2. Exchange rate €/USD 2016: 1.11
Slide 128: Regulatory scenario
Capital Markets Day Regulatory scenario Chile Peru Argentina Brazil Colombia 12.5%. Future 13.7%1. Future 2016 WACC Ampla 11.4% 10.0% 12.0% WACC pending to WACC pending to real pre tax Coelce 12.3% be defined be defined 5 years Ampla Regulatory cycle 4 years 4 years 5 years 5 years 4 years Coelce 20
Slide 129: Regulatory scenario: focus on Brazil, Argentina and Colombia
Capital Markets Day Regulatory scenario: focus on Brazil, Argentina and Colombia 2017-19 Current regulation New proposed framework EBITDA1 impact Recognized RAB remuneration: Expected Temporary tariff based on historical opex and RAB 2017 ~ 2 €bn, WACC 12.5% Argentina + 0.40 €bn capex from Febru
Slide 130: Regulatory scenario: capex and RAB evolution
Capital Markets Day Regulatory scenario: capex and RAB evolution WACC RAB (€bn) EBITDA and capex: focus on networks (€bn) +23% +62% 10.3 10. 0 8.4 2.4 2.5 8.0 12.5%1 2.01 2.0 2.5 2.1 11.4%2 1.8 6.0 2.0 1.5 1.6 12.0% 1.3 0.9 4.0 1.3 1.0 1.1 1.2 1.2 13.7%3 1.7 2.1 0.9 2.0 0.5 10.0% 1.8 1.9 0.0 0.0 201
Slide 131: Retail: positioning & market liberalization
Capital Markets Day Retail: positioning & market liberalization 2016 Total free market sales (TWh) Enel 2016 Free energy sold (TWh) From (2016) market share To (2019) (% of Total) 0.2 5% 2.7 Argentina 3% 4 128 132 2.3 2% 10.4 Brazil 23% 121 416 537 5.6 17% 7.2 Chile 50% 34 34 68 3.8 18% 4.5 Colombia
Slide 132: Industrial growth 2017-2019
Capital Markets Day Industrial growth 2017-2019 Total capex Growth capex by business Growth capex by country 4% 14% 13% 32% 11% 43% 7.0 €bn 4.8 €bn 4.8 €bn 48% 36% 68% 26% 5% Networks Renewables Argentina Brazil Chile Maintenance Growth Thermal generation Retail Colombia Peru Growth capex concentrat
Slide 133: Main industrial KPIs
Capital Markets Day Main industrial KPIs Networks Retail Renewables Thermal generation End users (mn) Free clients power & gas (‘000) Installed capacity renewables (GW) Installed capacity (GW) Smart meters (mn) Installed capacity large hydro capacity (GW) +1% +9% +125% +16% 12.9 9 14 11.1 8 12 1.8 1
Slide 134: Latam financial targets
Capital Markets Day Financial targets EBITDA and capex (€bn) 2017-19 Cash flow generation (€bn) +42% 5.1 4.7 8.8 2.2 4.2 3.6 6.5 3.0 3.0 4.8 2.0 2.0 1.8 2016 2017 2018 2019 FFO Maintenance FFO after Net growth FCF capex maint. capex capex EBITDA Capex Growth and efficiencies driving a strong EBITDA
Slide 135: 2017-19 strategic plan: Closing remarks
Capital Markets Day 2017-19 strategic plan Closing remarks
Slide 136: Closing remarks
Capital Markets Day Closing remarks The strategy has delivered so far solid results and a sustainable performance We are moving to the next level with the addition to our key pillars of digitalization and customer focus dimensions Our vision and strategy is shared by the whole management team It wil
Slide 137: Annexes
Capital Markets Day Annexes CNet
Slide 138: ESG strategic pillars
Capital Markets Day - ESG annexes ESG strategic pillars Engaging the local communities Customer focus Digitalization Engaging the people we work with Aiming at operating efficiency and innovation Decarbonizing the energy mix 136
Slide 139: Engaging the local communities
Capital Markets Day - ESG annexes Engaging the local communities Related SDGs Industrial actions Related targets/commitments Access to affordable, sustainable and 3 mn people, mainly in Africa, Asia and modern energy Latin America by 2020 Employment and sustained, inclusive and 1.5 mn people by 2020
Slide 140: Engaging the people we work with
Capital Markets Day - ESG annexes Engaging the people we work with Related SDGs Industrial actions Related targets/commitments Appraise performance of all employees 2020: 100% of eligible employees involved having worked for at least 3 months in the 2020: 99% of TP1 appraised Group 2020: 94% of TP1
Slide 141: Aiming at operating efficiency and innovation
Capital Markets Day - ESG annexes Aiming at operating efficiency and innovation Related SDGs Industrial actions Related targets/commitments Large scale infrastructure innovation: storage, electric vehicles, grid digitization +18 mn smart meters rolled out by 2019 and smart meters Open fiber: ultrabr
Slide 142: Decarbonizing the energy mix
Capital Markets Day - ESG annexes Decarbonizing the energy mix Related SDGs Industrial actions Related targets/commitments +~8 GW of additional renewable capacity Development of renewable capacity by 20191 Reduction of thermal capacity -19 GW by 2019 < 350 gCO2 /KWheq by 2020 Specific CO2 emissions
Slide 143: Mitigation of other environmental impacts
Capital Markets Day - ESG annexes Mitigation of other environmental impacts Related SDGs Industrial actions Related targets/commitments Reduction of SO2 specific emissions -30% by 2020 (vs 2010) Reduction of NOx specific emissions -30% by 2020 (vs 2010) Reduction of particulates specific -70% by 202
Slide 144: Cyber Security framework
Capital Markets Day - ESG annexes Digitalization and related risks: Cyber Security framework Framework highlights Cybersecurity related targets/commitments Asset 100% of internet web applications Single strategy approach based on protected through advanced cybersecurity business risk management Cust
Slide 145: Assumptions: commodities, prices, macroeconomics and FX
Capital Markets Day - annexes Assumptions: Commodities, prices, macroeconomics and FX 2016 2017 2018 2019 Scenario New Plan Old Plan New Plan Old Plan New Plan Old Plan New Plan Old Plan Brent $/bbl 45 63 48 66 52 70 55 74 Coal $/ton 56 60 50 64 52 68 53 71 Gas TTF €/MWh 13 21 14 21 15 22 16 22 CO2
Slide 146: EBITDA targets by Country and Global Business Line
Capital Markets Day - annexes EBITDA targets by Country and Global Business Line (€bn) 2016 2017 2018 2019 Italy 6.6 6.8 7.1 7.5 Global Thermal Generation 0.1 (0.1) (0.1) 0.1 Global I&N 3.6 3.5 3.6 3.8 Global Renewables Energies 1.1 1.2 1.4 1.3 Retail 1.8 2.0 2.1 2.1 Service & Other 0.1 0.1 0.1 0.1
Slide 147: EBITDA targets new vs old perimeter
Capital Markets Day - annexes EBITDA targets new vs old perimeter (€bn) Global Renewables Energies 2016 2017 2018 2019 Global Global Global Global Large Large Large Large EGP1 Renew able EGP1 Renew able EGP1 Renew able EGP1 Renew able Hydro Hydro Hydro Hydro Energies Energies Energies Energies Italy
Slide 148: Capex plan 2016-19
Capital Markets Day - annexes Capex plan 2016-19 (€bn) 2016 2017 2018 2019 Growth Maintenance Growth Maintenance Growth Maintenance Growth Maintenance Italy 0.6 1.3 0.8 1.2 1.1 1.2 0.9 1.2 Global Thermal Generation 0.0 0.1 0.0 0.1 0.0 0.1 0.0 0.1 Global I&N 0.4 0.9 0.6 0.9 0.9 0.8 0.7 0.8 Global Ren
Slide 149: Annexes: 9M 2016 results
Capital Markets Day Annexes 9M 2016 results
Slide 150: 9M 2016 consolidated results: financial highlights
9M 2016 consolidated results Financial highlights (€mn) 9M 2016 9M 2015 ∆ yoy Like-for-like Revenues 51,459 55,998 -8% Reported EBITDA 12,010 12,161 -1% Ordinary EBITDA1 11,896 11,888 +0% +4% (5) Reported EBIT 7,689 6,308 +22% Ordinary EBIT 7,666 7,640 +0% Reported Group net income 2,757 2,089 +32%
Slide 151: Ordinary EBITDA evolution
9M 2016 consolidated results Ordinary EBITDA evolution (€mn) +0% +4% 545 (293) (823) (410) 399 350 240 11,888 11,896 11,497 11,065 +8% (Net of FX) 9M 2015 One-offs 1 9M 2015 Growth Efficiency Retail Scenario & Forex 9M 2016 One-offs 3 9M 2016 ordinary adjusted margin Energy adjusted ordinary 2 margi
Slide 152: Group adjusted EBITDA by business
9M 2016 consolidated results Group adjusted EBITDA by business (€mn) +4% 545 (27) (410) 165 178 (19) Retail 11,497 Retail 1,438 €mn 11,065 1,983 €mn Old perimeter: Renewables1 +30 €mn Renewables2 3,066 €mn 2,903 €mn Generation Generation 1,251 €mn 1,345 €mn Networks Networks 5,321 €mn 5,302 €mn 9M 2
Slide 153: Group adjusted EBITDA by geography
9M 2016 consolidated results Group adjusted EBITDA by geography (€mn) +4% Italy1 Italy2 5,017 €mn 718 (50) 37 13 9 (410) 5,035 €mn Iberia1 Iberia2 2,730 €mn 18 97 2,828 €mn Latam1 11,497 Latam2 2,338 €mn 11,065 2,670 €mn Eur. & N.Afr.1 Eur. & N.Afr.2 680 €mn 609 €mn N.&Cen. Am.1 N.&Cen. Am.2 435 €mn
Slide 154: Ordinary EBITDA matrix
9M 2016 consolidated results Ordinary1 EBITDA matrix (€mn) Global Therm al Global Infrastructures Global Renew able Services Retail Total Total Generation & Trading & Netw orks Energies & Other 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 9M 2016 Italy 400
Slide 155: Ordinary EBITDA matrix: new vs old perimeter
9M 2016 consolidated results Ordinary EBITDA matrix (€mn): new vs old perimeter Global Thermal Generation & Trading Global Renewable Energies 9M2016 9M 2015 9M 2016 9M 2015 New Old New Old New Old New Old perim eter perim eter perim eter perim eter perim eter perim eter perim eter perim eter Italy 4
Slide 156: Gross debt structure
9M 2016 consolidated results Gross debt 1 structure Long term debt by currency Long term debt by currency after swap Interest rate composition 57% 82% 24% 46.2 €bn 2% 46.2 €bn 11% 4% 2% 76% 4% 21% 3% 7% 4% 1% 2% EUR USD BRL CLP EUR USD BRL Floating Fixed + Hedged COP Other GBP CLP COP Other 1. In no
Slide 157: Debt structure by instrument
9M 2016 consolidated results Debt structure by instrument (€bn) North & Central Europe & Sub-Saharan Debt by instrument Enel Spa EFI Italy Iberia Latam Central Total Others North Africa Africa & Asia America Bonds 13.34 17.54 0.30 - 0.10 3.64 - 0.14 - 35.06 Bank Loans 0.05 - 0.67 3.95 0.71 1.92 0.42
Slide 158: Debt maturity coverage split by typology
9M 2016 consolidated results Debt maturity coverage split by typology (€bn) 24.6 20.6 5.3 Available committed credit lines1 14.2 8.3 19.3 6.8 Short term 2 3.6 5.3 1.3 1.1 3.6 Cash Bank Loans and 1.1 0.4 6.4 Others 5.5 1.2 3.6 0.1 4.2 Bonds 2.4 0.3 1H 2016 < 3Q 2017 3Q 2017 2018 2019 2020 After 2020
Slide 159: 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 160: 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
Slide 161: Iberia Noviembre 2016
Capital Markets Day Iberia 22 Noviembre 2016
Slide 162: Posicionamiento y magnitudes principales
Capital Markets Day Posicionamiento y magnitudes principales 2016E EBITDA Clientes de electricidad y gas 2016E Magnitudes principales 2016 Potencia instalada (GW) 22,8 27% 16% RAB Dx (bn €) 11,2 47% 18% Clientes (millones) 12,6 2% 11,1 millones 1,5 millones 3,4 bn€ Electricidad Gas Producción neta (
Slide 163: Regulación
Capital Markets Day Regulación Bono social Renovables Sentencia Tribunal Supremo contra esquema financiación actual por considerarlo discriminatorio Pendiente de definición los parámetros del segundo semiperiodo Cantidades 2014-16 han de devolverse regulatorio Amplio consenso en la necesidad de modi
Slide 164: Comercialización: descripción del mercado eléctrico español
Capital Markets Day Comercialización: descripción del mercado eléctrico español1 Clientes (millones) Ventas de energía (TWh. b.c.) 35,00 300,00 30,00 15,3 28,5 223 262 1,3 1,7 250,00 25,00 200,00 20,00 14,0 169 169 150,00 15,00 13,3 0,5 26,8 100,00 10,00 12,8 39 54 93 50,00 5,00 39 ,00 ,00 Regulado
Slide 165: Comercialización: mercado español de gas
Capital Markets Day Comercialización: descripción del mercado español1: Gas 10,00 Clientes (millones) Ventas de gas(bcm) 9,00 25,00 8,00 0,1 7,7 22,4 7,00 20,00 6,00 1 15,00 1 18,7 5,00 4,00 7,6 10,00 3,00 2,00 5,00 1,00 ,00 3,7 ,00 Residencial Empresas Total Residencial Empresas Total Primer operad
Slide 166: Comercialización: clientes y evolución margen unitario
Capital Markets Day Comercialización: clientes y evolución margen unitario Mercado eléctrico1 Mercado gasista2 Evolución Ebitda3 (€bn) 130,000 +6% 90% +13% 1,2000 +14% 80% 120,000 90,000 90% 1,000 109 70% 79 85,000 80% 110,000 105 107 78 103 80,000 60% ,8000 70% 100,000 50% 75,000 70 73 60% 70,000 ,
Slide 167: Digitalización como palanca de eficiencias, calidad de servicio y SVA
Capital Markets Day Digitalización como palanca de eficiencias, calidad de servicio y SVA Palancas de eficiencia e incremento del margen Objetivos Coste de servicio (€/cliente)1 16 -7% Acelerar uso de factura eléctrica (e-factura) 15 para la involucración digital y reducir el coste 14 del servicio p
Slide 168: Digitalización: nuevos servicios
Capital Markets Day Digitalización: nuevos servicios Desglose margen SVA 2016 Aspectos clave Margen SVA (M€) 7% Evolución de la cartera y desarrollo +133% 66% nuevos SVA 27%~ 60 M€ (2,7 millones contratos SVA en 2016) 27% 200 Evolución de la cartera y desarrollo ~200 150 Mantenimiento Alianzas Equip
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