Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda...

150
Investor Presentation September 2019

Transcript of Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda...

Page 1: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Investor Presentation

September 2019

Page 2: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Agenda

Investor Presentation – Strategic Plan 2019-21

Enel Today

2019-2021 Our Vision & Positioning

2019-2021 Our Pillars

Capital allocation

Financial management

Risk management

Earnings & targets

Business line highlights

2015-2018 Our Delivery

FY 2018 consolidated results

2019-21 Our Plan

H1 2019 consolidated results

Page 3: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Investor PresentationStrategic Plan 2019-21

Page 4: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Enel Today

Page 5: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

We are a leader in the new energy world

1. By number of customers. Publicly owned operators not included

2. By installed capacity. Includes managed capacity for 4.2 GW

3. It includes nuclear

4. Includes customers of free and regulated power and gas markets

4

1st network operator1

World’s largest private

player2 in renewables

Largest retail customer

base worldwide1

73 mn end users

70.4 mn customers4

43.4 GW capacity2

46.4 GW capacity3

6.2 GW demand response

En

el to

da

y

Page 6: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

4.4 €bn

46%

28%

7%

18%

0.7 €bn

100%

7.1 €bn

50%

16%

32%

2%

Our business model is well diversified and provides long term visibility

5

Italy

South America

North & Central America Iberia Rest of Europe

1. As of 2018. Breakdown excludes -0.2 €bn from holding and services

Presence with operating assets or through Enel X

Africa, Asia & Oceania

2018 Group EBITDA1

16.2 €bn

En

el to

da

y

3.6 €bn

55%

10%12%

19%

4%

0.5 €bn

30%

46%2%

22%

0.1 €bn

100%

Networks Thermal generationRenewables RetailOther

44%

46%

10%

Page 7: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2015-2018

Our Delivery

Page 8: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Sustainable, profitable, digitalized and customer centric

2015 2018

Renewables focus Owned RES capacity/Total capacity % 41% 46%

Group simplification Group net income/total net income 64% 70%

Cash flow generation FFO – gross capex €bn 1.8 2.6

End Users mn 61 73

Digital impact % of digital investments on total n.a. 19%

Shareholder return DPS €/sh 0.16 0.28

New businesses Gross margin Enel X €bn n.a. 0.5

Retail customers Mn customers in the free market 17 22

CO2 Footprint Specific Co2 emissions kg/kWheq 0.409 0.356

Decarbonization

Customer

centricity

Value creation

7

Ou

r d

eliv

ery

Page 9: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Our strategy delivered growth while improving our financial strength

8

6.88.0

-

1

2

3

4

5

6

7

8

9

10

2013-15 2016-18

Average capex (€bn)

+18%

Net income (€bn)

2.9

4.1

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

2015 2018

+41%

EBITDA (€bn)

+8%

Rating1

25.0% 27.0%

-

0.05 0

0.10 0

0.15 0

0.20 0

0.25 0

0.30 0

2015 2018

FFO/Net Debt

+200bps

37.5Net Debt

(€bn) 41.1

Ou

r d

eliv

ery

BBB BBB+

1. Standard & Poor’s

15.0 16.2

-

2

4

6

8

10

12

14

16

18

20

2015 2018

Page 10: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Active Portfolio Management was balanced and accretive

9

2.3

5.2

7.7 7.5

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.0 0

Source offunds

Use offunds

1. eMotorWerks worldwide private charging points

2. Net Impact from both source of funds and use of funds

Transactions completed 2015-18 (€bn)

Minority

buy-out

Acquisitions

End users

Demand response

Charging points1

+10 mn

6.2 GW

37k

9.9 GW

348k

2018 2021

+11 mn

Impact on Group Net Income

EPS accretion

+100 €mn

2%

+300 €mn

5%

Ou

r d

eliv

ery

Households passed 5.1 mn 8.5 mn

Operating benefits from APM

Financial impacts2

Page 11: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Strong commitment to our SDGs targets

10

Ou

r d

eliv

ery

1. Cumulated figures since 2015

Access to affordable and clean energy mainly in Africa, Asia and Latin America

6.3

20181

Employment and sustainable and inclusive economic growth

1.8

Engaging local communities (mn beneficiaries)

High-quality, inclusive and fair education 1.0

Reduction of CO2 specific emissions (kg/kWheq)

0.36

Climate change 2018

3.0

20201

3.0

0.8

<0.35

2020

Page 12: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

8.2%

8.8%

7% 6.3%

Value creation

250 bps

0.160.18

0.237

0.28

-

0.05

0.10

0.15

0.20

0.25

0.30

0.35

2015 2016 2017 2018

0.28

Management actions have driven higher returns and shareholder remuneration

11

Value creation spread Shareholder return – DPS (€/sh)

EPS

+75%

0.32 0.36 0.40

0.28MIN

DPS0.21

Ou

r d

eliv

ery

1. Adjusted for IFRS15 and WIP

2015 2018

ROIC1 WACC

120 bps

Page 13: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Our Vision & Positioning

Page 14: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

13

Integrated model captures opportunities from energy transition

e-Mobility

Growth in renewable capacity Grid development & automation

Urban infrastructure

EN

ER

GY

TR

AN

SIT

ION

Ou

r vis

ion

an

d p

ositio

nin

g

Full speed renewables

towards a full

decarbonized profitable

mix

Foster digital networks as

key infrastructure in the

energy transition

Lead cities

transformation through

infrastructures and

platforms

Push mobility

electrification to capture

future value

Page 15: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Decarbonization shapes our capacity and improves margins

14

Ou

r vis

ion

an

d p

ositio

nin

g

Total installed capacity 2018-211 (GW)

43.4 42.953.9

46.4 46.5

7.0 11.6

39.5

(0.6)

-10

10

30

50

70

90

110

FY 2018 Target2018

Thermalcapacityreduction

Renewablesadditions

2021

48% 62%Emission free production3

89.4 93.4

2

CO2 specific emissions <0.35 kg/kWheq in 20204

CO2 specific emissions 0.23 kg/kWheq in 2030Decarbonization in 2050

Renewables extra margin

1. Includes managed capacity.

2. 0.6 GW additional capacity subject to portfolio rotation

3. Emission free production includes nuclear generation and production form managed capacity in 2018

4. Target certified as «Science based». CO2 specific emissions will be <0.345 kg/kWheq in 2021

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Thermal cost Solar LCOE

~20%

extra margin127

99

24

98

132

26

Thermal GenerationRenewables Nuclear

ProductionTwh

250

ProductionTwh

25689.8

51%

Page 16: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

15

Electrification and urbanization drive infrastructure investments and new services to clients

382 321

-

50.0 0

100 .00

150 .00

200 .00

250 .00

300 .00

350 .00

400 .00

2018 2021

Network automation efficiencyCustomer/RC node

-16%

2236

-

5.00

10.0 0

15.0 0

20.0 0

25.0 0

30.0 0

35.0 0

40.0 0

2018 2021

Free market customers3 (mn)

+64%

1. Public & private charging points installed (public 5.5k in 2018 and 24.1k in 2021)

2. Includes Italy for clusteres A&B and C&D

3. Power and gas customers

49 455Charging points1 (k)

6.2 9.9 Demand response (GW)

2018 2021

2.5 3.4 Public lighting

(mn points)

7375

65.0 0

67.0 0

69.0 0

71.0 0

73.0 0

75.0 0

2018 2021

End users (mn)

485 518 100 .00

200 .00

300 .00

400 .00

500 .00

600 .00

700 .00

800 .00

2018 2021

Electricity distributed (TWh)

+7% +3%

Infrastructure investments Customer needs and services

0.8 1.9Credit cards (mn)

3.0 4.0Maintenance and repair

(mn clients)

3 173 Storage (MW/yr)

2018 2021

5.1 8.5Fiber deployment

(Households passed mn)2

Ou

r vis

ion

an

d p

ositio

nin

g

Page 17: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

84%

11%

5%

Digitalization fuels economic benefits and satisfies customers needs

16

Asset Customer

2019-21 Digitalization Capex

5.4 €bn

People

PeopleAsset Customers

Key highlights

Ou

r vis

ion

an

d p

ositio

nin

g

~4 €bn for networks digitalization

Advanced automation of construction

and O&M of renewable assets

Increased flexibility and automation for

thermal generation plants

Process automation and increased

offering to customers

2.5

2019-21 EBITDA

Cumulated economic benefits (€bn)

Page 18: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Our Pillars

Page 19: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Sustainable value creation over the long term

18

Operational

Efficiency

Asset management

Customers

1.2 €bn opex

savings

Industrial

Growth

Asset development

Customers

Asset Management

27.5 €bn capex

3.2 €bn incremental

EBITDA

Simplification

Corporate

Streamlining

Human

Capital

Communities

&

People

Ou

r p

illa

rs

Page 20: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Asset development supports our growth ambitions

19

Total gross capex by business and by nature1 2019-21

28%64%

4%4%

Networks Renewables

Thermalgeneration

Enel X

Asset development by business1 2019-21

16.5 €bn16.5

4.8

6.2

Asset development

Customers

Asset management

27.5 €bn

Ou

r p

illa

rs

Industrial

Growth

40%

42%

9%

4%5%

Networks Renewables ThermalGeneration

Enel X Retail

27.5 €bn

1. Includes 1.6 €bn BSO capex

Page 21: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

6%

14%

30%

37%

4% 9%

Renewables are the driving force of growth

20

10.6 €bn

Higher investments to build

11.6 GW additional capacity

Focus on markets with integrated

presence & on developed countries

Maximization of portfolio returns

Value creation through decarbonization

& integration with retail portfolio

3%

16%

29%33%

4%

15%

~11.6 GW2

Additional capacity by geography

70% 28%Italy

Iberia

South America North & C. America

Rest of Europe Africa, Asia & Oceania

1. Includes 1.6 €bn BSO capex

2. Of which 1.8 GW related to BSO and 0.8GW related to JVs.

Ou

r p

illa

rs

Industrial

Growth

Asset development capex1 2019-21

By technology

Page 22: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

42%

29%29%

Asset development

Customers

Asset Management

44%

17%

36%

3%

Italy Iberia

South America Rest of Europe

Networks’ investments tailored to maximize asset base value

21

11.1 €bn

Ou

r p

illa

rs

Gross capex 2019-21 by nature & by geography

11.1 €bn

Industrial

Growth

Restructuring of Eletropaulo

Completion of Goias turnaround

Resiliency and flexibility in Italy and

Spain

2021 RAB ~45 €bn: ~30% South

America, ~70% Europe

Digitalization to promote efficiencies

and improve service quality

Page 23: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

39%

21%

27%

13%

Italy

Iberia

South America

North & C. America

Enel X capital allocation addresses customers’ needs

22

1.1 €bn

Ou

r p

illa

rs

1.1 €bn

59%

41%

Asset development

Customers

Industrial

Growth

Gross capex 2019-21 by nature & by geography

Smart lighting and fiber optics for cities

Electric mobility in Italy, Spain, US and

Romania

Energy efficiency solutions

Demand response and storage solutions

for C&I customers

Page 24: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Driving efficiencies across all businesses

23

8.7

0.6 0.1 (1.2)

8.1

2018 CPI &Forex

Growth Efficiency 20212

Opex evolution (€bn)1

-7%

33%

23%

36%

8%

Networks Thermalgeneration

Retail Other

Efficiency by business

1.2 €bn

Ou

r p

illa

rs

1. Total fixed costs in nominal terms (net of capitalization)

2. Of which CPI +0.9 €bn and forex -0.3 €bn

Operational

Efficiency

FY2018

8.5

Page 25: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Our commitment to SDGs and Human Capital

24

Ou

r p

illa

rs

Access to affordable and clean energy 10.0

20301

Employment and sustainable and inclusive economic growth

8.0

High-quality, inclusive and fair education 2.5

Reduction of CO2 specific emissions (kg/kWheq) 0.23

Climate change2030

Smart meters (mn)

Digitalization capex (€bn)

Charging points2 (th)

46.9

5.4

455

Innovation and infrastructure/Sustainable cities 2021

Our people

2021

Talent attraction and retention

100% of people involved

99% of people appraised

Appraise performance of

people we work with3

100% of people involved

86% of people participatingClimate corporate survey3

Enable digital skills diffusion

among people we work with100% of people involved in

digital skills training

Training

Recruiting should ensure equal

gender splitting of the

candidates (c. 50%)

Global implementation of the

diversity and inclusion policy

Diversity

1. Cumulated figures since 2015

2. Public & private charging points installed (public 5.5k in 2018E and 24.1k in 2021)

3. Eligible and reachable people having worked in the Group for at least 3 months

Engaging local communities (mn beneficiaries)Human

Capital

Page 26: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Sustainable, profitable, digitalized and customer centric O

ur

pill

ars

25

20212015 2018

Renewables focus Owned RES capacity/Total capacity % 41% 46%

Group simplification Group net income/total net income 64% 70%

Cash flow generation FFO – gross capex €bn 1.8 2.6

End Users mn 61 73

Digital impact Cumulated EBITDA 2019-21 (€bn) n.a.

New businesses Gross margin Enel X €bn n.a. 0.5

Retail customers Mn customers in the free market 17 22

CO2 Footprint Specific Co2 emissions kg/kWh 0.409 0.356

55%

71%

4.4

75

2.5

0.9

36

0.345

~1.7x

Page 27: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Improved return on invested capital supporting dividend growth

26

0.280.33

0.37 0.39

0

0.0 5

0.1

0.1 5

0.2

0.2 5

0.3

0.3 5

0.4

0.4 5

2018 2019 2020 2021

Implicit DPS at 70% pay-out (€/sh)

+39%

0.47EPS 0.53 0.55

Value creation spread

0.36 Min

DPS0.340.320.28

0.40

Ou

r p

illa

rs

2018 2021

8.8%

10.2%

6.2%

ROIC1 WACC

6.3%

1. Adjusted for IFRS15

Value creation

400 bps

CAGR

2018-21

+ 12%

+9%

Value creation

250 bps

Page 28: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Our Plan

Page 29: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

New investment cycle drives growth while debt remains stable

28

8.2 9.2

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2018-20Old Plan

2019-21

Net income (€bn)

41.1 41.8

10.0 0

15.0 0

20.0 0

25.0 0

30.0 0

35.0 0

40.0 0

45.0 0

50.0 0

2018 2021

Net Debt (€bn)

-

Average capex (€bn)

+12%

4.1

5.6

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2018 2021

+37%

EBITDA (€bn)

16.219.4

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2018 2021

+20%

Ou

r p

lan

Page 30: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Solid improvement in profitability, returns, and credit metrics

FFO/Net debtReturn on invested capitalProfitability

19%

25%27%

29% 29%

0.1 0

0.1 5

0.2 0

0.2 5

0.3 0

0.3 5

2015 2018 2019 2020 2021

Net income/EBITDA

25.0% 27.0% 27.4% 28.6%31.1%

0.0 %

5.0 %

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2015 2018 2019 2020 2021

29

Ou

r p

lan

8.2% 8.8% 9.3% 10.0% 10.2%

0.0 %

2.0 %

4.0 %

6.0 %

8.0 %

10.0%

12.0%

14.0%

2015 2018 2019 2020 2021

ROIC WACC

7%6.3% 6.3% 6.2% 6.2%

+400bps +140bps +410 bps

Page 31: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Capital Allocation

Page 32: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Increased capex plan focused on asset development and customers

31

Capex plan1 (€bn)

14.4 16.5

4.14.8

6.16.2

0

5

10

15

20

25

30

35

2018-20old plan

2019-21new plan

Asset development Customer Asset management

27.524.6

+12%

Cap

ita

l a

lloca

tio

n

16.2

2.1

1.00.1

19.4

EBITDA2018

Assetdevelopment

Customer Assetmanagement

EBITDA2021

EBITDA evolution by investment (€bn)

Asset management pre-tax cumulated

cash generation above 32€bn

+20%

1. It includes 1.6€bn BSO capex

Page 33: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Growth driven by networks and renewables

32

Cap

ita

l a

lloca

tio

n

+1.0

+1.2

+0.4

+0.5

+0.5

2018 target vs 2021

64%

28%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100 %

Asset development

16.5

Capital allocation 2019-21 (€bn)

25%

66%

9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100 %

Customers

4.8

15%

52%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100 %

Asset management

6.2

Incremental EBITDA2 (€bn)

11.6

1.3

11.1

1.1

2.5

Total by business1

1. It excludes other equal to -0.1 €mn. Thermal generation includes nuclear. Calcukated on 2018 target

2. Excluding the impact of our asset rotation programme

Page 34: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Beyond plan period, run rate capex grows from 6.7€bn to 8€bn

33

Cap

ita

l a

lloca

tio

n

Capex run-rate (€bn)

+19%

Drivers of run rate by business line

40 –43%

42-45%

7%<5%<5%

~8 €bn

Development of 3.5/4 GW per year

Resiliency, digitalization and service quality

Infrastructure investments to cope with customers’ needs

Increased flexibility and restructuring in thermal generation fleet

Retail

8

6.7

Run rate old plan Run rate new plan

Page 35: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Business Line Highlights

Page 36: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

28 28

8142

539

48

0.0

10. 0

20. 0

30. 0

40. 0

50. 0

2018 2021

Wind

Renewables: diversifying mix, improved visibility

35

Installed capacity and Production by technology1

~100

132

0

20

40

60

80

100

120

140

2018 2021

CAPACITY (GW) PRODUCTION (TWh)

1. Consolidated capacity only

2. Volumes to be sold forward in year n-1

Bu

sin

ess lin

e h

igh

ligh

ts

2019-21 Sales portfolio composition

2%

52%

17%

29%

Incentivized LT PPA contracted

Forward sales Open position

~357 TWh

> 15 36%

10-15 17%

5-10 16%

PPA duration (yrs)

< 5 31%

+23% +32%

71% of cumulated production sold forward

2

Hydro Solar Other

Page 37: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Incremental asset development capex fully allocated to renewables

1. Calculated as asset develpoment Ebitda at regime/Capex (net of BSO)

41%

24%

18%

4%8%

5%

Brazil USA Iberia

Italy Chile Other

~5 GW

EBITDA/CAPEX1 IRR spread

over WACC 13% ~200 bps

36

8.3

10.6

60%

40%

Bu

sin

ess lin

e h

igh

ligh

ts

Asset development capex evolution (€bn) Incremental renewable capacity by geography and technology

(~ 2)

~ 4

Old plan2018-20

BSO Organic New plan2019-21

3.4 BSO

1.6 BSO

Page 38: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

4.4

0.9 0.1

5.4

2018 Assetdevelopment

Assetmanagement

2021

92%

8%

Asset development

Asset management

Renewables: accelerating growth

37

Gross Capex 2019-21

11.6 €bn

Bu

sin

ess lin

e h

igh

ligh

ts

2018-21 EBITDA evolution (€bn)

+23%

Asset management pre-tax cumulated cash generation for ~12€bn

4.5

FY2018

Page 39: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Networks: 4% total RAB growth

38

1.3 2.5

4.65.5

1.7

2.02.2

2.70.9

1.310.7

14.0

-

5.00

10.0 0

15.0 0

20.0 0

2018 2021

31 31

-

5.00

10.0 0

15.0 0

20.0 0

25.0 0

30.0 0

35.0 0

40.0 0

45.0 0

2018 2021

+30%-

Bu

sin

ess lin

e h

igh

ligh

ts

1. WACC nominal pre-tax

2. Blend of Rio, Cearà, Goias and Eletropaulo

Energy distributed

(TWh) 356 368 117 149

Europe: RAB evolution (€bn) South America: RAB evolution (€bn)

BrazilArgentina Chile Colombia Peru

368 result

target

Page 40: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

42%

29%

29%

Asset development

Customers

Asset Management

Networks: profitability supported by asset turnaround and efficiencies

39

Gross Capex 2019-21

11.1 €bn

Bu

sin

ess lin

e h

igh

ligh

ts

2018-21 EBITDA evolution (€bn)

7.6

0.50.2

0.5

0.4 (0.3)

8.9

2018 Eletropaulo Connections Tariff& volumes

Efficiency FX 2021

+17%

Page 41: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Networks: Eletropaulo turnaround doubling EBITDA

40

Bu

sin

ess lin

e h

igh

ligh

ts

Eletropaulo asset turnaround (EBITDA €mn)

+2x

Eletropaulo operational KPIs

0.3

0.2

0.1

0.4

0.7

2018 6M 2018pro forma

2018pro forma

Operatingimprovement

2021

63 -30%Opex/end user (€/cust)

-2.1 +99bpsQuality index1 (%)

2018 2021

43 +9%Electricity distributed

(TWh)

RAB/end user (€/cust)

Opex/end user (€/cust)

~275

~ 36

Cearà

2021

Eletropaulo

2021

~255

~44

1. Quality on service rewards/penalties and losses reduction economic impact on gross margin

2021 Networks benchmark

Page 42: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Enel X: capturing new opportunities with customers

41

1.1 €bn

Bu

sin

ess lin

e h

igh

ligh

ts

0.1

0.1

0.1

0.1

0.2

0.5

2018 e-City e-Mobility e-Home e-Industry 2021

2018-21 EBITDA evolution1 (€bn)

Asset Development +0.2 €bn

Customers +0.3 €bn59%

41%

Asset development Customers

1. Rounded figures

Gross Capex 2019-21

Page 43: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

149198

0

50

100

150

200

250

300

350

400

2018 2021

Retail: further growth on increase in customer base and efficiency

42

2018-21 EBITDA evolution (€bn)

2.2 2.3

0.30.70.7

0.12.9

3.4

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2018 2021

South America Iberia Romania

+17%

22

36

0

10

20

30

40

50

60

2018 2021

+64%

2018-21 volumes sold2 (TWh)

1. Free market power and gas customers. Includes Italy, Spain and Romania

2. Free market. Includes Italy, Spain and Romania

Bu

sin

ess lin

es h

igh

ligh

ts

+33%

2018-21 free market customers1 (mn)

Page 44: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Financial Management

Page 45: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Stable debt throughout the plan

44

41.1

0.3 (27.5)

(13.9)

0.0

5.0

10. 0

15. 0

20. 0

25. 0

30. 0

35. 0

40. 0

45. 0

50. 0

Sourcesof funds

IncrementalDebt

Gross capex Dividends

Source of funds allocation 2019-21 (€bn)

Fin

an

cia

l ma

na

ge

me

nt

41.1 ~41.8 ~42.2 ~41.8

2018 2019 2020 2021

Net debt evolution (€bn)

-%

1H 20191

45.4

1. Includes 1.4€bn of IFRS 16 impact.

Page 46: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Improving credit metrics

45

Long term credit rating

Standard & Poors

Moody’s

Fitch

BBB+

Baa2

A-

Stable

Positive

Stable

Rating Outlook

Fin

an

cia

l ma

na

ge

me

nt

Credit metrics

Net debt/EBITDA FFO/Net debt

2.5x 2.5x 2.4x 2.3x 2.2x

25.0%27.0% 27.4% 28.6%

31.1%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

-

0.5 0

1.0 0

1.5 0

2.0 0

2.5 0

3.0 0

3.5 0

4.0 0

4.5 0

2015 2018 2019 2020 2021

Page 47: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Continued reduction in cost of debt

46

Bond refinancing

including green bonds1

Bank loans and other

financing

Hybrid refinancing

Financial strategy for 2019-21 (€bn)

6.2

2.8

1.8

2.62.3 2.3 2.2 2.2

5.0%

4.6% 4.6%4.4% 4.4%

2.5 0%

3.0 0%

3.5 0%

4.0 0%

4.5 0%

5.0 0%

0

0.5

1

1.5

2

2.5

3

3.5

4

2015 2018 2019 2020 2021

Net financial expenses on debt (€bn)

-4%

Cost of gross debtNet financial expenses

4.5%

Total 13.6 4.8%

Amount

Emerging markets 2.8

4.2%

2.3%

6.4%

Current total

cost

7.6%

3%

2.5%

4.9%

7.4%

Expected

cost2

4.1%

Fin

an

cia

l ma

na

ge

me

nt

1. 1 €bn Green bond already issued in January 2019

2. Enel estimates on current cost associated with financial instruments

FY 2018

Page 48: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Risk Management

Page 49: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Operating risk: low EBITDA exposure to merchantrisk

72%

28%

0%

20%

40%

60%

80%

100 %

120 %

2019-21 EBITDA

48

Ris

k m

an

ag

em

en

t

Regulated &

contracted

Merchant

55.3

Regulated EBITDA by business 2019-21

~ 64%Regulated, contracted under long term

PPA, incentivized

~ 100%Regulated

~ 46%Regulated

~ 20%Regulated

~ 23%Regulated

EBITDA 2019-21 (€bn)

Retail portfolio hedge

Page 50: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Operating risk: natural margin hedge from retail portfolio

49

Ris

k m

an

ag

em

en

t

100%84%

0%

20%

40%

60%

80%

100 %

120 %

140 %

160 %

2019 2020

-

10.0

20.0

30.0

40.0

50.0

60.0

GenerationGross margin

A Retailportfolio

Renewables+ Nuke

87%

Coal & Gas

13%

Natural hedging with

retail portfolio

Hedging of CDS-CSS

based on

scenario/market

Integrated margin – Generation GM vs retail GM Hedging position on price driven production

Pool price

indexed

Small and

medium

customers

Large

customers

+13%Ren & Nuke

hedged price vs

2018

+19%

=Retail margin vs

2018=

Page 51: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Operating risk: low regulatory risk over the plan period

50

Ris

k m

an

ag

em

en

t

1. WACC nominal pre-tax

2. Blend of Rio, Cearà, Goias and Eletropaulo

Highly visible frameworks

Argentina

Brazil2

Chile

Colombia

Peru

Italy

Iberia1

Romania

2019 2020 2021 20222018

2019-21 BP

South

America

2019-21 BP

Stable and mature regulations

WACC WACC

5.9%

5.58%

5.7%

12.3%

11.8% - 11.4%

10%

12.5%

12%

Europe 2019 2020 20222018 2021

Page 52: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Operating risk: renewables growth alreadysignificantly addressed

51

Ris

k m

an

ag

em

en

t

1. It includes managed capacity

2. As of June 2019

3. Includes 2019-2021 CODs only

11.6

9.3

2.30.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Target additionalcapacity

Addressed Residual target

2019-21 Additional capacity addressed1 (GW)

80% addressed

Pipeline by geography and technology2 (GW)

16%

2%

43%

22%

16%

Italy and Iberia Rest of Europe

South America North & C. America

Asia/Australia

45%

54%29.1 GW

Total pipeline / residual target

~ 6x

~ 13x

Short term pipeline3 / residual target

2019

2020

2021

Coverage

by yr

100%

89%

57%

Page 53: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Currency risk: low exposure to volatile currencies

63%

5%32%

Europe North America

South America

2019-21 EBITDA by currency

55.3 €bn

2019-21 EBITDA by geography

63%

11%26%

EUR

USD

South America

55.3 €bn

52

Ris

k m

an

ag

em

en

t

FX sensitivity1 – Avg. yearly impact 2019-21 (€mn)

1. Sensitivity based on +/-10% USD/LOC (EUR/USD @Plan). Rounded figures

(180) 225

(35) 40

(6) 6

(100) 125

(20) 25

BRL

ARS

CLP

COP

PEN

(30) 35

(6) 8

- -

(12) 15

(2) ~3

Group NIEBITDA

(340) 420 TOTAL (50) 60

(1.8%) 2.3% % on yearly

value(<1.0%) 1.1%

Page 54: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

22%

78%

Floating Fixed + Hedged

55.1 €bn

57%

30%

6%

7%

EUR USD GBP Other

Financial risk: gross debt hedges softening FX swings and rates movements

53

Ris

k m

an

ag

em

en

t

86%

7%

7%

EUR USD GBP Other

55.1 €bn55.1 €bn

Gross debt by currency at 2021 After swap Interest rate composition

Page 55: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Financial risk: limited re-financing needs; strong available liquidity

15.0

5.8

Available committed credit lines

Cash

20.8 €bn

2019-21 Liquidity available1

1.54.0 3.7

9.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2019 2020 2021 Total

Debt maturity by year1 (€bn)

153%

1. As of June 30th, 2019.

2.4% 6.8% 6.3%

Maturities/Gross Debt

Ris

k m

an

ag

em

en

t

Refinancing on

average gross debtTotal liquidity / Maturities

54

New plan Last 3 yrs

8.2% 16.0%

Page 56: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Earnings & Targets

Page 57: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Strategy driving 37% increase in earnings vs 20% increase in EBITDA

56

5.65.4

4.8

4.1

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

2021202020192018

Group net ordinary income (€bn) 2018-21 Group net ordinary income evolution (€bn)

4.1

3.2 (0.4) 0.1(0.9)

(0.5)

5.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2018 EBITDA D&A Financialcharges

Taxes Minorities 2021

+37%

Ea

rnin

gs a

nd

ta

rge

ts

Page 58: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Visible value creation for our shareholders

5757

Net ordinary income (€bn)

Ordinary EBITDA (€bn)

4.1

16.2

2018

4.8

17.4

2019

~+11%

~+6%

CAGR (%)

2018-21

Implicit DPS (€/sh) 0.28 0.33 ~+12%

5.4

18.5

2020

0.37

5.6

19.4

2021

0.39

Pay-out ratio 70% 70% -70% 70%

Minimum dividend per share (€) 0.28 0.32 ~+9%0.34 0.36

Earnings growth

Value creation

Ea

rnin

gs a

nd

ta

rge

ts

Three years minimum dividend per share

Page 59: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

FY 2018 consolidated results

Financial results

Page 60: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Key highlights of the period

59

Continued exceptional delivery on renewables developmentDouble digit increase in end users

Further decline in operating costs

Portfolio rotation and further simplification to accelerate growth and optimize risk profile

Significant progresses on SDGs 4, 7 and 8

Ordinary EBITDA up by 4%Group Net income up by 9%

Page 61: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Financial targets delivery

60

Net ordinary income (€bn)

Dividend per share (€)

Ordinary EBITDA (€bn)

Net debt (€bn)

FFO/Net debt

3.7

0.237

15.6

2017

37.4

27%

4.1

16.2

2018

41.1

27%

0.28

4.1

16.2

2018 target

41-42

26.5%

0.28

+9%

+4%

∆ YoY

+10%

- %

+18%

Page 62: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Industrial growth: capex

61

FY 2018 Gross capex1 FY 2018 Asset development capex by business and geography

1. FY 2018 figure includes 378 €mn related to BSO Mexico

23%

11%

23%

36%

4%3%

Italy

Iberia

North & CA

South America

RoE

Africa, Asia & Oceania

45%

2%

38%

10%5%

4.7 €bn8.5 €bn

Retail

Thermal Generation

Enel X

Networks

Renewables

61%34%

5%

4.7 €bn

Networks

Renewables

Other

Page 63: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2.6

0.4

(0.4)

1.74.2

38.3

2.7 (0.1)(1.7)

39.2

FY 2017 Additional capacity

Disposal Buildand sell

FY 2018

Continued delivery on renewables growth

621. Rounded figures

2. Including acquisitions for 0.2 GW

Renewable capacity evolution 20181 (GW)

Additional capacity of 3 GW mainly in

North & Central America

Asset rotation to maximize portfolio

returns

68% of 2019-21 total production

already sold forward

Production up by 20%

+3GW TotalConsolidated

capacity

Managed capacity

43.440.9Total

capacity

2

90.4 108.4Total production (TWh)

Page 64: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Group’s decarbonization

63

Share of renewables on total installed capacity1 (GW)

1. Includes managed capacity for 2.6 GW in FY2017 and 4.2 GW in FY 2018.

2. Emission free production includes nuclear generation and production from managed capacity

3. Target certified as «Science based». CO2 specific emissions will be <0.345 kg/kWheq in 2021

4. Calculated including managed capacity

45% emission free

Emission free share of production2

2017

257 TWh

51% emission free

2018

260 TWh

40.9 43.4

46.646.4

87.5 89.8

-10.0

10.0

30.0

50.0

70.0

90.0

110 .0

FY 2017 FY 2018

+6%

-%

Thermal GenerationRenewables

CO2 specific emissions(kg/kWheq)

~0.36

20184

0.23

2030

<0.35

2020

~0.40

2017

Page 65: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Networks

64

+1.2 mn smart meters installed

+5.1 mn meters 2.0 installed in Italy

Eletropaulo: + 7 mn customers

Turnaround underway

Promising regulatory outlook

Goias restructuring

65.5

72.9

45.0 0

50.0 0

55.0 0

60.0 0

65.0 0

70.0 0

75.0 0

FY 2017 FY 2018

+11%

End users (mn) Smart meter1 (mn)

42.6

43.8

40.0 0

40.5 0

41.0 0

41.5 0

42.0 0

42.5 0

43.0 0

43.5 0

44.0 0

44.5 0

45.0 0

FY 2017 FY 2018

+3%

1.76.8

Smart meters 2.0 (mn)

1. FY 2017 restated

4% 15%Smart meters 2.0

on total

Page 66: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Enel X

65

Accelerated infrastructure deployment Global leadership in demand response

2017 2018

2.5 2.5 Public lighting

(mn points)

2.4 5.1Fiber deployment

(Households passed mn)2

30 49Charging points1 (k) 5.7

6.2

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

7.50

FY 2017 FY 2018

Customer servicesInfrastructure

2.0

3.0

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

FY 2017 FY 2018

+50%+9%

Demand response (GW) Storage (MW)

1. Public & private charging points installed (public 1.8 k in 2017 and 5.5 k in 2018)

2. Italy only, clusters A&B and C&D

+63%

> 2x

0 22BESS

(MW) 0 45

Page 67: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

8.68.5

7.0

7.5

8.0

8.5

9.0

9.5

10.0

FY 2017 FY 2018

Driving efficiencies across all businesses

661. In nominal terms, rounded figures. Adjustments: FY 2017 excludes +45 €mn one-offs, FY 2018 excludes +94 €mn one-offs

2. Includes net delta Perimeter of +264 €mn

3. Including hyperinflation in Argentina for 56 €mn

4. Includes impact of IFRS 15 for -163 €mn

-1%

Perimeter and One-offs2 310

Growth 50

Opex - main drivers (€mn)Opex evolution1 (€bn)

Efficiency4 (315)

CPI & Forex3 (145)

Page 68: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Portfolio management and simplification

67

Portfolio

rotation

Corporate

streamlining

Deals executed Recent transactions

Sale of 540MW1 renewable assets

Enterprise value 700 €mn

EGP Brazil

Shares swap on 5% of Enel Americas

capital

Enel Americas

Acquisition of 650 MW from US JV

Equity value of 256 US$mn

EGP North America

1. Accounted as held for sale

Page 69: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Appraise performance of people we

work with2

Climate corporate survey2

Our commitment to SDGs – Communities & people

High-quality, inclusive and fair education 1.0 2.5

20181 20301

1. Cumulated data and targets from 2015

2. Eligible and reachable people having worked in the Group for at least 3 months

Access to affordable and clean energy 6.3 10.0

Employment and sustainable &inclusive economic growth 1.8 8.0

99% people

appraised

Our people

20181

Talent

attraction &

retention 86% people

participating

Global implementation of diversity and

inclusion policy

Enable digital skills diffusion among

our people

39% women in

recruit. processesDiversity &

Training 35% people

involved

68

Page 70: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Shareholder remuneration

0.28

0.400.47

2015 2018 2019

EPS (€/sh) DPS (€/sh)

0.16

0.280.33

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

2015 2018 2019

Min. guaranteed

DPS

69

0.28 0.32

+68% >2x

0.16

+18%+18%

Page 71: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Financial highlights (€mn)

70

Reported EBITDA

Ordinary EBITDA1

Revenues

Reported EBIT

Reported Group net income

Group net ordinary income2

Net debt

Ordinary EBIT

FFO

Capex3

∆ yoy

+1%

+4%

+4%

+1%

+27%

+9%

+10%

+1%

+9%

-%

16,351

16,158

75,672

FY 2018

9,900

4,789

4,060

41,089

9,793

11,075

8,530

Net of FX4

+7%

+10%

15,653

15,555

74,639

FY 2017

9,792

3,779

3,709

37,410

9,736

10,126

8,499

1. Excluding extraordinary items for 98 €mn in FY 2017 and for 193 €mn in FY 2018. Includes

hyperinflation in Argentina for 62 €mn

2. Including one off for +161 €mn in FY 2017 and +308 €mn in FY 2018

3. Including 775 €mn for capex related to HFS in FY 2017 and 378 €mn in FY 2018 related to

BSO Mexico

4. Includes hyperinflation in Argentina

Page 72: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Ordinary EBITDA evolution (€bn)

711. Rounded figures.

2. FY 2017 includes one off for +298 €mn and FY 2018 for +80 €mn. Net delta Perimeter is equal to +238 €mn

3. Includes hyperinflation in Argentina for 62 €mn

15.6

16.2

12.0 0

13.0 0

14.0 0

15.0 0

16.0 0

17.0 0

18.0 0

19.0 0

20.0 0

FY 2017 FY 2018

Growth in renewables and networks 1,000

Perimeter and One-offs2 20

Efficiency 315

FX3 (470)

Scenario and margins (265)

+4%

EBITDA evolution1 (€ bn)€ mn

Page 73: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Ordinary EBITDA by business line

721. Rounded figures

7.6

0.14.5

1.1

2.9

Networks Enel X

Renewables ThermalGeneration

Retail

16.21 €bn

Performance driven by growth and

volume/prices

Growth and efficiencies

Normalization of market environment and

thermal gap

Focus on new infrastructures and services

Higher margins across all markets

+12%

+3%

(40%)

-

+20%

∆ YoY

Page 74: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Global Renewable energies

73

4.1

4.5

2.50

3.00

3.50

4.00

4.50

5.00

FY 2017 FY 2018

+12%

EBITDA evolution1 (€ bn)

1. Rounded figures

2. FY 2017 includes one offs for +100 €mn, FY 2018 includes one offs for – 7€mn. Net delta Perimeter is equal to +6 €mn

Growth 715

Perimeter and One-offs2 (100)

Efficiency (40)

FX (150)

Scenario and margins 60

EBITDA FY 2018 by geography

25%

8%

45%

16%2% 4%

4.5 €bn

Italy

Iberia

North & CA

South America

RoE

Africa, Asia & Oceania

€ mn

Page 75: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

7.47.6

5.80

6.30

6.80

7.30

7.80

FY 2017 FY 2018

Global Infrastructure and networks

741. Rounded figures.

2. FY 2017 includes one offs for -135 €mn, FY 2018 includes one offs for +124 €mn. Net delta Perimeter is equal to +181 €mn

+3%

EBITDA evolution1 (€bn)

Growth 200

Perimeter and One-offs2 440

Efficiency 140

FX (220)

Scenario and margins (365)

EBITDA FY 2018 by geography

47%

26%

25%

2%

7.6 €bn

Italy

Iberia

South America

RoE

€ mn

Page 76: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2.0 2.2

0.50.7

2.4

2.9

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

FY 2017 FY 2018

Retail

751. Rounded figures.

2. Includes impact of IFRS 15 for 163 €mn

3. FY 2018 includes one offs for – 4€mn. Net delta Perimeter is equal to -52 €mn

4. Net of energy losses

+20%

EBITDA evolution1 (€bn)

Growth and margins 340

Perimeter and One-offs3 (55)

Efficiency2 200

FX -

Free market - main KPIs

€ mn

Italy Iberia

152 153

120 .00

125 .00

130 .00

135 .00

140 .00

145 .00

150 .00

155 .00

160 .00

165 .00

170 .00

FY 2017 FY 2018

Volumes (TWh)4

13.1 14.1Unitary margin

(€/MWh)

14.5 16Customers

(mn)

-%

Page 77: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

From Ordinary EBITDA to Net Ordinary Income

76

3.7(1.5)PY (1.9)(2.7)15.6 9.7(5.8) 7.1

1. Includes other financial expenses (-439 €mn for FY 2017, -102 €mn for FY 2018) and results from equity investments (+118 €mn for FY 2017, +81 €mn for FY 2018)

16.2

(6.4)

9.8

(2.3)

7.5

(1.9)

(1.6)

4.1

OrdinaryEBITDA

D&A EBIT Financialexpenses& other

EBT Incometaxes

Minorities Groupnet ordinary

income1

+9%+5%Delta YoY -%-14%+4% +1%+9% +6%

Page 78: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Cash flow (€bn)

771. Accruals, releases, utilizations of provisions in EBITDA (i.e. personnel related and risks and charges)

2. Includes dividends received from equity investments

3. Funds from operations

2.4(8.5)10.1(1.7)(1.6)15.6 (0.5)(1.7)

( )

PY

16.2(1.9)

1.1

(1.7)

(2.6)

11.1

(8.5)

0.7

3.3 -

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

OrdinaryEBITDA

∆ Provisions ∆Workingcapital& other

Incometaxes

Financialexpenses

FFO Capex Build & sell FCF1

2

3 4

4. EGP Brazilian assets classified in HFS for 362 €mn and capex related to BSO

Mexico for 378 €mn

+37%-%+9%+54%+9%+4% n.m.+10%Delta YoY

0.8

-%

Page 79: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Debt and financial expenses (€bn)

78

+9%

Gross and net debt Net debt evolution

Financial expenses on debt: 2.3 €bn (-70 €mn vs. PY) Cost of gross debt: 4.5% (-20 bps vs. December 2017)

37,410 43,12237,302 43,122

37.4 41.1

6.98.27.06.7

51.456.0

-

10

20

30

40

50

60

FY 2017 FY 2018

Net debt Financial receivables Cash

37.3(3.3)

3.42.8 0.9

41.1

Dec 31, 2017continuingoperations

FCF Dividends paid Active portfoliomanagement

FX FY 2018

1

1. Net debt FY 2017 restated at 01/01/2018 to account for IFRS 9 for -111€mn

Page 80: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Solid improvement in profitability, returns, and credit metrics

FFO/Net debtProfitability

19%

24% 25%

10%

15%

20%

25%

30%

2015 2017 2018

Net income/EBITDA

79

+600bps +200 bps

Long term credit rating

S&P

Moody’s

Fitch

BBB+

Baa2

A-

Stable

Stable

Stable

Rating Outlook

25%27% 27%

10%

15%

20%

25%

30%

2015 2017 2018

FFO/Net debt

8.2% 8.8%8.7%

ROIC

Page 81: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Closing remarks

80

Solid 2018 results support good prospects for future years

Focus will be on organic development, efficiencies and simplification

Strong commitment to SDGs to create sustainable value

2019 guidance, reiterated, underpins a yoy EPS and DPS growth of c. 18%

Page 82: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

H1 2019 consolidated results

Financial results

Page 83: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Key highlights of the period

82

Efficiencies accelerated reaching c.200 €mn in the semester

Exit from coal in Russia signed and approved by EGM Second swap on Enel Americas shares announced, AUCAP in progress

Ordinary Group net income +20% yoy

Ordinary EBITDA reached 8.8 €bn (+13% yoy)Development capex increased by more than 30% yoy

SDGSustainable Dev.

GoalsSDGs targets on track

Page 84: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Industrial growth: capexDevelopment capex increasing by more than 30% yoy

83

H1 2019 Capex by business and by nature

41%

44%

7%

3%5%

4.2 €bn

(+23% yoy)

H1 2019 Asset Development capex by business

2019E ~100%

2020E ~100%

2021E ~ 50%

Capex addressed

by year

29%

68%

1%2%

2.5 €bn

(+33% yoy)60%

18%

22%

Asset development

Customers

Asset management

4.2 €bn

(+23% yoy)

Retail

Conventional generation

Networks

Enel X

EGP

Page 85: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

39.2 39.442.3

4.2 3.7

0.72.2

3.7

FY 2018 H1 2019 COD3Q 19

COD4Q 19

FY 2019E

Steady increase in EGP growth

841. Rounded figures,

2. Potential disposals not included

Renewable capacity evolution in 20191 (GW)

Consolidated capacity

Managed capacity

46.0Total

capacity43.4 43.1

48%48%

-% Managed & consolidated Renewable capacity on total

50%

2.9 GW

2,900 MW COD in H2, of which

700 MW already built

7,300 MW capacity

in execution

c. 85% of 2019-20 additional capacity

target in execution

2

2

Page 86: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Group’s infrastructure and services

230.7246.7

150 .00

170 .00

190 .00

210 .00

230 .00

250 .00

H1 2018 H1 2019

Electricity distributed (TWh)

+7%

13.814.7

10.0 0

10.5 0

11.0 0

11.5 0

12.0 0

12.5 0

13.0 0

13.5 0

14.0 0

14.5 0

15.0 0

H1 2018 H1 2019

Free market power customers3 (mn)

+0.9

1. Public & private charging points installed (public 2.1 k in H1 2018 and 8.5 k in H1 2019); 2. Including Italy for clusters A&B and C&D; 3. Including only Italy and Iberia figures; 4. Including BESS

(Renewables and Conventional) and customer storage

72.7 73.0

70.0 0

70.5 0

71.0 0

71.5 0

72.0 0

72.5 0

73.0 0

73.5 0

H1 2018 H1 2019

End users (mn)

3.8

10.1

-

2.00

4.00

6.00

8.00

10.0 0

H1 2018 H1 2019

Smart meters 2.0 (mn)

>2.5x +0.3

Infrastructure Customer services

H1 2018 H1 2019

2.5 2.4 Public lighting

(mn points)

37 63Charging points1 (k) +70%

3.1 6.0Fiber deployment

(Households passed mn)2 c. 2x

85

43.8 43.9Total smart

meters (mn)

5.7 6.0Demand response (GW)

28.4 80.6 Storage (MW)4

H1 2018 H1 2019

+5%

c. 3x

Page 87: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

4,216

206

(106) 4,316

(192)

36 84

4,244

H1 2018 Perimeter &Other

IFRS 16 H1 2018pro forma

Efficiency CPI & FX Develop. &Customers

H1 2019

861. Rounded figures

+1%

Opex evolution1 (€mn)

Operational efficiencyEfficiencies accelerated reaching c.200 €mn in the semester

-2%

Page 88: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

87

1. Net capacity

2. Approved by Enel Russia EGM on July 22, 2019

Portfolio management and simplificationAcceleration of decarbonisation strategy and minorities buyout

c. 300 €mn sale price

c. (75) €mn Recurring EBITDA

Exit from Coal in Russia2

3.6 GW1 coal capacity reduction

5% increase in ENIA shares

via first share swap

Second share swap

transaction announced

Expected increase in Enel’sstake up to c.62%

Enel Russia Reftinskaya sale process Enel Americas simplification process

AUCAP in progress

Page 89: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Progress on SDGs

881. Cumulated data and targets from 2015 (mn beneficiaries)

2. Including generation from nuclear and renewable managed capacity

Access to affordable and clean energy 7.1 10.0

Employment and sustainable and inclusive economic growth

2.0 8.0

High-quality, inclusive and fair education 1.1 2.5

Emission free production2 56% 62%

Engaging local communities (mn beneficiaries)1 H1 2019 2030

Climate change H1 2019 2021

SDGSustainable Dev.

Goals

Page 90: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Financial highlights (€mn)

Reported EBITDA 7,8578,907 +13%

Net debt 41,089345,391 + 10%

FFO 4,3614,922 + 13%

H1 2018H1 2019 ∆ YoY

Ordinary Group net income2 1,892 2,277 + 20%

Ordinary EBITDA1 7,729 8,763 + 13%

Reported Group net income 2,0202,215 + 10%

1. Excludes extraordinary items in H1 2018 ( +128 €mn Rete Gas Earn Out) and H1 2019 ( +94 €mn Disposals of Mercure plant, +50 €mn second tranche Rete Gas Earn Out)

2. Excludes extraordinary items in H1 2018 ( +128 €mn Rete Gas Earn-Out) and H1 2019 ( +97 €mn Disposals Mercure plant, +49 €mn Rete Gas Earn-Out; -154 €mn Impairments

coal plants Bocamina 1 and Tarapaca; -54 €mn Impairment RGRES)

3. As of December 31st 2018. IFRS 16 impact from January 1, 2019

89

Page 91: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Ordinary EBITDA evolution1 (€bn)+13% increase in EBITDA in line with FY targets

901. Rounded figures

Asset development driven by EGP and I&N

Increased customers number and improving margins

Efficiencies driven by conventional generation and I&N

Positive regulatory changes in South America

Price recovery more than compensating lower volumes

Positive perimeter from consolidation of Enel Dx Sao Paulo

Fx devaluation mainly in Argentina

+13%

5.8 6.5

1.9

0.2 0.10.7

2.0

0.2

H1 2018 Assetdevelopment

Customers Assetmanagement

H1 2019

7.7

8.8

Page 92: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Ordinary EBITDA by business linePerformance supported by our integrated business model

911. Rounded figures. Including c.230 €mn regulatory adjustments in Argentina, c.160 €mn from PPA contract early termination, c.60 €mn earn out settlement Enel X

3.9

2.3

0.8

1.6

0.1

Networks EGP ConventionalGeneration

Retail Enel X

8.81 €bn

(+13% yoy)

Higher prices and asset rotation +6%

Efficiencies,

Constructive regulatory changes & perimeter +11%

Higher efficiencies and improving margins

on conventional Generation+78%

Better free market margins and efficiencies +4%

∆ YoY

Page 93: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Enel Green PowerAsset development more than offset negative scenario

92

2,152

2,281

1,80 0.00

1,90 0.00

2,00 0.00

2,10 0.00

2,20 0.00

2,30 0.00

2,40 0.00

H1 2018 H1 2019

+6%

EBITDA evolution (€mn) EBITDA H1 2019 by geography

2.3 €bn

Italy

Iberia

N&C America

South America

RoE

Africa, Asia & Oceania

Volumes -3.1 TWh yoy

due to lower resources

Prices +7% yoy

PPA early termination c.80 €mn

Positive effect from North America

JV unwinding

26%

8%

46%

16%3%

1%

Page 94: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

3,523

3,921

2,50 0.00

2,70 0.00

2,90 0.00

3,10 0.00

3,30 0.00

3,50 0.00

3,70 0.00

3,90 0.00

4,10 0.00

4,30 0.00

4,50 0.00

H1 2018 H1 2019

Infrastructure and NetworksEfficiencies, regulatory items and perimeter drive solid EBITDA growth

93

+11%

EBITDA evolution (€mn) EBITDA H1 2019 by geography

45%

25%

29%1%

3.9 €bn

Italy

Iberia

South America

RoE

Efficiencies for c.80 €mn

Constructive regulatory changes

in Argentina and Brazil

More than 60% of

end users fully digitalised

Consolidation and outstanding

performance of Enel DX Sao Paulo

Page 95: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Free market: Higher margins and + 900k

new customers (Italy and Spain)

Regulated market: weak performance due

to a combination of lower prices and

declining volumes

Efficiencies for c.30 €mn

1,136 1,167

351 324

149

H1 2018 H1 2019

RetailImproving customers portfolio mix supports power margins

94

+4%

EBITDA evolution (€mn) Free market

1,5721,634

31.6 30.1

38.1 37.5

H1 2018 H1 2019

-3.1%

69.7 67.6

Energy

sold (TWh)

8.2 8.9

5.6 5.8

H1 2018 H1 2019

+0.9

13.8 14.7

Power

customers (mn)

IberiaItaly South America

Page 96: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

468

831

100 .00

200 .00

300 .00

400 .00

500 .00

600 .00

700 .00

800 .00

900 .00

1,00 0.00

H1 2018 H1 2019

Conventional generation and Global tradingPerformance supported by efficiencies, higher output and prices

95

+78%

EBITDA evolution (€mn) EBITDA H1 2019 by geography

10%

37%40%

13%

0.8 €bn

Italy

Iberia

South America

RoE

c.90mn of efficiencies primarly

in Italy and Spain

Improved results on nuclear generation

(+1.4 TWh yoy; EBITDA +190 €mn yoy)

PPA early termination c.80 €mn

Page 97: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Profit & loss (€mn)

96

D&A

EBIT

Ordinary EBITDA

Financial expenses1

Income taxes

Minorities

EBT

Group net ordinary income

∆ yoy

+13%

+8%

+17%

+3%

+13%

+18%

+18%

+20%

(3,210)

5,553

8,763

H1 2019

(1,241)

(1,118)

(832)

4,227

2,277

(2,982)

4,747

7,729

H1 2018

(1,207)

(991)

(703)

3,586

1,892

1. Includes other financial expenses (-34 € mn for H1 2018, -77 € mn for H1 2019)

Results from equity investments n.m.(85) 46

Higher D&A mainly due to IFRS16 and

consolidation of Enel DX Sao Paulo

Cost of debt declining by 30 bps

Higher Financial expenses due to delta perimeter

Higher taxes, despite a lower tax rate, driven by higher

EBT

Equity investments negatively impacted

by North America JV unwinding

Higher minorities due to increasing

contribution of South America activities

Page 98: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

8.8 ( 0.6 )

( 1.6 )( 0.6 )

( 1.1 )

4.9 ( 4.2 )

0.8 -

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

OrdinaryEBITDA

∆ Provisions ∆Workingcapital& other

Incometaxes

Financialexpenses

FFO Capex FCF

Cash flow (€bn)23% increase in capex covered by FFO generation1

97

1. Rounded figures

2. Accruals, releases, utilizations of provisions in EBITDA (i.e. personnel related and risks and charges), accruals of bad debt

3. Includes dividends received from equity investments

4. Funds from operations

5. Gross of BSO capex HFS

1.0(3.4)54.4(1.4)(0.5)7.7 (0.9)(0.7)

( )

PY

2

3

4

-22%+23%+13%-21%+28%+13% +83%-13%Delta YoY

Page 99: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Debt (€bn)Cost of gross debt declined 30bps vs. PY, Net Debt increase due to IFRS16 and Active Portfolio Management

98

+3%

Gross debt Net debt evolution

Financial expenses on debt: 1.17 €bn (in line with PY) Cost of gross debt: 4.4% (-30 bps vs. 2018)

37,410 43,12237,302 43,122

41.1

1.4( 0.8 )

2.2 1.1 0.4

45.4

30

32

34

36

38

40

42

44

46

48

50

Jan 1, 2019 FCF Dividends paid Active portfoliomanagement

FX H1 2019

IFRS 16

42.5

41.1 45.4

8.2 8.16.7 5.8

57.4 59.3

-

10

20

30

40

50

60

Jan 1, 2019 H1 2019

Net debt Financial receivables Cash

1. Includes foreign exchange derivatives realized in the period

1

1.4IFRS 16

Page 100: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

SDGSustainable Dev.

Goals

Closing remarks

99

Performance supported by operating growth and efficiencies

Acceleration in development capex sustained by growing cash flow generation

High visibility on medium term results thanks todelivery, efficiencies, regulation and assets under construction

FY targets confirmed

Page 101: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Financial annexes

Page 102: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Agenda

101

Macro scenario

Thermal generation

Renewables

Infrastructure & Networks

Retail

Enel Group

Page 103: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Macro scenario

Page 104: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

GDP, CPI, FX

103103

Ma

cro

sce

na

rio

1. Year end

2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021

Italy 0.8 1.2 1.1 1.0 1.1 1.5 1.6 1.7 n.m. n. m. n. m. n. m.

Iberia 2.5 2.3 2.0 1.8 1.7 1.7 1.7 1.7 n.m. n. m. n. m. n. m.

South America

Argentina (2.4) 3.1 3.1 3.0 33.8 20.0 17.0 14.0 43.2 36.2 38.6 40.4

Brazil 1.1 2.8 3.0 2.8 3.7 4.0 4.2 4.2 4.5 4.3 4.4 4.5

Chile 4.0 3.2 3.2 3.2 2.7 3.0 3.0 3.1 796.1 744 746 747

Colombia 2.7 2.9 3.1 3.1 2.7 3.4 3.4 3.4 3,725.0 3,657 3,767 3,859

Peru 4.0 4.0 4.1 4.1 4.0 2.5 2.6 2.5 3.9 4.0 3.9 3.9

Europe and North Africa

Romania 4.3 4.0 3.3 2.9 4.3 3.4 2.8 2.4 4.7 4.9 4.9 5.0

Russia 1.6 1.9 1.7 1.7 1.6 4.2 4.3 4.2 80.0 74.1 75.6 76.9

North & Central America

USA 2.9 2.3 2.1 1.9 2.9 2.2 2.3 2.3 1.1 1.2 1.2 1.2

M exico 2.0 2.5 2.6 2.5 2.0 3.7 3.4 3.3 22.5 22.7 22.9 23.2

GDP (%) CPI (%) FX against €1

Page 105: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Commodities’ prices

104104

Ma

cro

sce

na

rio

2018 2019 2020 2021

Gas TTF €/MWh      22.8 19.7 18.9 18.5

Gas Henry Hub $/mmbtu        3.1 3.0 3.1 3.2

Oil Brent $/bbl      71.5 69.0 67.5 63.5

Coal API2 $/ton      91.9 77.0 75.0 74.0

CO2 €/ton      15.9 16.0 17.5 18.0

Page 106: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Thermal generation

Page 107: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Final installed Capacity (GW)

106106

Th

erm

al g

en

era

tio

n

2018 2021 2018 2021 2018 2021 2018 2021

Italy - - 7.3 6.9 6.3 5.5 13.6 12.6

Iberia 3.3 3.3 7.8 7.7 5.5 3.0 16.2 14.1

South America - - 6.9 6.9 0.8 0.8 7.7 7.6

Europe and North Africa - - 5.3 5.2 3.6 - 8.9 5.3

North & Central America - - - - - - - -

Africa, Asia & Oceania - - - - - - - -

Total 3.3 3.3 27.3 26.8 15.8 9.3 46.4 39.5

Nuke CCGT and Oil&Gas Coal Total

Page 108: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Installed Capacity (GW)

107107

Th

erm

al g

en

era

tio

n

15.89.3

27.3

26.8

3.3

3.3

2018 2021

39.4

46.4

Nuke

CCGT and Oil&Gas

Coal

-15%

Page 109: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Renewables

Page 110: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Final Consolidated capacity (GW)

109109

Ren

ew

ab

les

2018 2021 2018 2021 2018 2021 2018 2021 2018 2021

Italy 12.4 12.4 0.8 1.0 0.8 0.8 0.1 0.1 14.0 14.3

Iberia 4.8 4.8 1.7 2.6 - - 0.0 1.1 6.5 8.4

South America 10.0 10.2 1.6 3.1 0.0 0.1 1.6 2.6 13.3 15.9

Europe and North Africa 0.0 - 0.7 1.1 - - 0.1 0.1 0.9 1.3

North & Central America 0.6 0.6 2.9 5.8 - 0.1 0.3 0.5 3.8 7.0

Africa, Asia & Oceania - - 0.4 0.7 - - 0.3 0.8 0.7 1.4

Total 27.8 28.1 8.2 14.2 0.8 0.9 2.4 5.2 39.2 48.4

TotalHydro Wind Geothermal Solar & Other

Page 111: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Consolidated capacity (GW)

110110

Ren

ew

ab

les

5.2

8.2

14.2

27.8

28.1

0.82.4

2018

0.9

2021

39.2

48.4

Solar & OtherWindHydro Geothermal

+25%

Page 112: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Infrastructure & Networks

Page 113: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Electricity distributed, End users, Smart meters

112112

Infr

astr

uctu

re &

Ne

two

rks

2018 2021 2018 2021 2018 2021

Italy 227.7 233.0 31.4 31.6 31.4 31.6

Iberia 124.7 119.0 12.2 12.4 11.6 12.3

South America 117.4 149.2 26.5 27.7 0.4 2.2

Europe and North Africa 15.6 16.4 2.9 3.0 0.5 0.9

Total 485.4 517.6 72.9 74.7 43.8 46.9

Electricity distributed (TWh) End users (mn) Smart meters (mn)

Page 114: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Retail

Page 115: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Power & gas customers and volumes1

114114

Reta

il

1. Net of “Salvaguardia”

2018 2021 2018 2021 2018 2021 2018 2021

Italy 25.2 18.4 102.3 92.3 4.1 4.8 4.8 5.1

Iberia 10.8 10.9 89.6 105.7 1.6 1.9 6.4 6.3

South America 25.8 28.2 91.1 184.1 0.0 0.0 0.0 0.7

Europe and North Africa 3.0 4.1 10.4 13.3 0.0 0.3 0.0 0.4

Total 64.7 61.6 293.4 395.3 5.7 7.0 11.2 12.4

Customers (mn) Volumes (TWh) Customers (mn) Volumes (bsmc)

Power Gas

Page 116: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Italian power market 2018

Regulated

29,6

16,7

12,9

19,6

Free Total

17,3 36,9

2,9

4,37,3

Customers (mn) Energy sold (TWh)

Business

Residential

85% 49%

40%

53%

Total

51,3

Regulated Free

34,8

31,5

206,3

66,2

237,8 289,1

16,6

222,9

86% 28%

25%

47%

Enel

market share2

Enel

market share2

1 Enel estimate based on closing 2018; % calculated on Total Italian Regulated Market

2 Enel estimate based on closing 2018; % calculated on Total Italian Free Market (not including Last Resort - “Salvaguardia”)

Enel

market share1

Enel

market share1

Reta

il

Page 117: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Spanish power market 2018

116

Reta

il

1. Internal estimates for Business and Residential Enel market share

Customers (mn) Energy sold (TWh)

Enel

market share1

31%43%

2.230.6

90.7

176.2

Regulated Free

60.1

178.4

Total

32.8

236.3 269.1

31%

32%

B2B B2C

30%44%

32%

30%

11.0

28.6

17.6

1.2

0.3

Regulated

0.9

29.8

Free Total

11.3

18.5

Business Residential

Enel

market share1

Page 118: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Enel Group

Page 119: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

14.6 14.4

6.7 6.1

3.3 4.1

2018 - 2020 Old view 2018 - 2020 New view

Old Plan Capex reconciliation (€bn)

118118

En

el G

rou

p

Growth

Maintenance

Connections

Asset development

Asset management

Customers

24.624.6

Retail, Enel X (e-Home, e-Industries), Network

connections

Investments for recurring asset maintenance

Growth investments in renewables and networks

(quality programs & smart metering)

Enel X (e-Cities, e-Mobility)

Page 120: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Gross Capex (€bn)

119119

En

el G

rou

p

2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021

Italy 0.2 0.2 0.1 0.1 1.7 1.7 1.7 1.5 0.3 0.3 0.3 0.4 0.2 0.3 0.3 0.3 0.1 0.1 0.2 0.2 0.1 0.1 0.1 0.1 2.5 2.5 2.6 2.5

Iberia 0.3 0.4 0.5 0.5 0.7 0.7 0.6 0.6 0.2 0.7 0.5 0.5 0.1 0.1 0.1 0.1 0.0 0.1 0.1 0.1 0.0 - - - 1.4 2.0 1.7 1.8

South America 0.3 0.2 0.2 0.2 1.3 1.3 1.4 1.2 0.6 1.1 1.3 1.1 0.0 - - - 0.0 0.1 0.1 0.1 0.0 - - - 2.2 2.8 3.0 2.6

Europe and North Africa 0.1 0.0 - - 0.2 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.0 - - - 0.0 - - - 0.0 - - - 0.4 0.4 0.3 0.2

North & Central America 0.0 0.0 - 0.1 - - - - 1.7 1.7 1.2 1.1 - - - - 0.0 0.1 - 0.1 - - - - 1.7 1.8 1.2 1.2

Africa, Asia & Oceania - 0.0 - - - - - - 0.1 0.2 0.4 0.4 - - - - - - - - - - - - 0.1 0.2 0.4 0.4

Other 0.0 0.0 - - 0.0 - - - 0.0 - - - - - - - 0.0 - - - 0.0 - (0.2) (0.1) 0.1 0.1 (0.3) (0.2)

Total 0.8 0.8 0.8 0.8 3.8 3.8 3.8 3.5 3.2 4.2 3.8 3.5 0.4 0.5 0.4 0.4 0.2 0.4 0.4 0.4 0.1 0.1 (0.1) - 8.5 9.8 9.1 8.6

Total Capex 2019 - 2021

Total

27.5 (0.1)1.1

Enel XServices

& Other

Global Generation

& Trading

Global Infrastructures

& NetworNs

Renewable

EnergiesRetail

11.6 1.311.12.5

Page 121: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Asset development capex (€bn)

120120

En

el G

rou

p

2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021

Italy 0.0 - - - 0.8 0.8 0.8 0.7 0.1 0.1 0.2 0.3 - - - - 0.0 0.1 0.1 0.2 0.0 - - - 1.1 1.1 1.2 1.2

Iberia 0.0 - 0.1 0.2 0.3 0.3 0.2 0.3 0.2 0.7 0.5 0.4 - - - - 0.0 - - - 0.0 - - - 0.5 1.0 0.8 0.9

South America 0.1 - - - 0.4 0.5 0.6 0.4 0.5 1.0 1.2 1.0 - - - - 0.0 0.1 0.1 0.1 0.0 - - - 1.1 1.6 1.9 1.4

Europe and North Africa 0.0 0.0 - - 0.1 - - - 0.1 0.2 0.1 0.1 - - - - 0.0 - - - - - - - 0.2 0.3 0.2 0.1

North & Central America 0.0 0.0 - 0.1 - - - - 1.7 1.7 1.2 1.1 - - - - 0.0 - - - - - - - 1.7 1.7 1.2 1.2

Africa, Asia & Oceania - 0.0 - - - - - - 0.1 0.2 0.4 0.4 - - - - - - - - - - - - 0.1 0.2 0.4 0.4

Other (0.0) 0.0 - - - - - - 0.0 - - - - - - - 0.0 - - - 0.0 - (0.2) - 0.0 0.1 (0.2) (0.1)

Total 0.1 0.1 0.2 0.3 1.6 1.6 1.7 1.3 2.9 3.9 3.5 3.2 - - - - 0.1 0.2 0.2 0.2 0.1 - (0.1) - 4.7 5.9 5.5 5.1

Total Capex 2019 - 2021

TotalEnel XServices

& Other

(0.1) 16.5

Retail Global Generation

& Trading

Global Infrastructures

& NetworNs

Renewable

Energies

0.6 4.6 10.6 - 0.7

Page 122: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Asset management capex (€bn)

121121

En

el G

rou

p

2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021

Italy 0.1 0.1 0.1 0.1 0.5 0.4 0.4 0.4 0.1 0.1 0.1 0.1 - - - - - - - - 0.0 - - - 0.7 0.7 0.7 0.6

Iberia 0.3 0.4 0.4 0.3 0.2 0.2 0.2 0.2 0.0 0.1 0.1 0.1 - - - - - - - - 0.0 - - - 0.6 0.6 0.6 0.5

South America 0.2 0.2 0.1 0.1 0.4 0.4 0.4 0.4 0.1 0.1 0.1 0.1 - - - - - - - - 0.0 - - - 0.7 0.7 0.6 0.6

Europe and North Africa 0.1 0.0 - - 0.0 - - - 0.0 - - - - - - - - - - - 0.0 - - - 0.1 0.1 0.1 0.1

North & Central America 0.0 0.0 - - - - - - 0.0 - - - - - - - - - - - - - - - 0.0 0.0 0.0 0.0

Africa, Asia & Oceania - 0.0 - - - - - - 0.0 - - - - - - - - - - - - - - - 0.0 0.0 0.0 0.0

Other 0.0 0.0 - - 0.0 - - - 0.0 - - - - - - - - - - - 0.0 - - - 0.1 0.1 0.0 0.0

Total 0.7 0.7 0.6 0.5 1.1 1.1 1.0 1.0 0.3 0.3 0.3 0.3 - - - - - - - - 0.1 0.1 0.0 0.0 2.3 2.3 2.0 1.9

Total Capex 2019 - 2021

TotalServices

& Other

Global Generation

& Trading

Global Infrastructures

& NetworNs

Renewable

EnergiesRetail Enel X

1.9 3.2 0.9 - - 0.2 6.2

Page 123: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Customers capex (€bn)

122122

En

el G

rou

p

2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021

Italy - - - - 0.4 0.4 0.4 0.4 - - - - 0.2 0.3 0.3 0.3 0.0 - - - - - - - 0.7 0.7 0.7 0.7

Iberia - - - - 0.2 0.2 0.2 0.2 - - - - 0.1 0.1 0.1 0.1 0.0 0.1 0.1 0.1 - - - - 0.3 0.4 0.3 0.4

South America - - - - 0.4 0.4 0.4 0.4 - - - - 0.0 - - - 0.0 - - - - - - - 0.4 0.5 0.5 0.5

Europe and North Africa - - - - 0.1 - - - - - - - 0.0 - - - 0.0 - - - - - - - 0.1 0.1 0.1 0.1

North & Central America - - - - - - - - - - - - - - - - 0.0 0.1 - - - - - - 0.0 0.1 - -

Africa, Asia & Oceania - - - - - - - - - - - - - - - - 0.0 - - - - - - - - - - -

Other - - - - - - - - - - - - - - - - 0.0 - - - - - (0.1) (0.1) 0.0 - (0.1) (0.1)

Total - - - 1.0 1.1 1.1 1.1 - - - - 0.4 0.5 0.4 0.4 0.1 0.2 0.1 0.2 - - (0.1) (0.1) 1.5 1.7 1.6 1.6

Total Capex 2019 - 2021 - 3.3 - 1.3 0.5 (0.1) 4.8

Services

& Other Total

Global Generation

& Trading

Global Infrastructures

& NetworNs

Renewable

EnergiesRetail Enel X

Page 124: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Ordinary EBITDA

123123

En

el G

rou

p

2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021

Italy 0.0 0.1 0.2 0.2 3.6 3.7 3.7 3.6 1.2 1.2 1.3 1.4 2.2 2.2 2.3 2.3 0.0 - 0.1 0.2 0.1 0.1 0.1 0.1 7.1 7.5 7.7 7.6

Iberia 0.4 0.6 0.6 0.7 2.0 2.0 1.9 1.9 0.4 0.4 0.5 0.5 0.7 0.5 0.6 0.7 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 3.6 3.6 3.7 3.9

South America 0.5 0.5 0.6 0.6 1.9 2.5 2.9 3.2 2.0 2.0 2.2 2.4 - 0.3 0.3 0.3 0.1 0.1 0.1 0.1 (0.1) (0.1) (0.1) (0.1) 4.4 5.3 6.0 6.7

Europe and North Africa 0.2 0.1 0.2 0.1 0.2 0.1 0.2 0.2 0.1 0.1 0.2 0.2 0.0 0.1 0.1 0.1 0.0 - - - 0.0 - - - 0.5 0.4 0.6 0.6

North & Central America (0.0) - - - - - - - 0.7 0.8 0.8 0.8 - - - - 0.0 - - 0.1 (0.0) - - - 0.7 0.7 0.9 1.0

Africa, Asia & Oceania - - - - - - - - 0.1 0.1 0.1 0.2 - - - - (0.0) - - - - - - - 0.1 0.1 0.1 0.2

Other (0.0) - - 0.1 (0.0) - - - 0.1 (0.1) (0.1) (0.1) - - - - (0.0) - - - (0.2) (0.1) (0.5) (0.5) (0.2) (0.2) (0.5) (0.5)

Total 1.1 1.4 1.6 1.6 7.6 8.3 8.7 8.9 4.5 4.5 5.0 5.4 2.9 3.1 3.3 3.4 0.1 0.1 0.3 0.5 (0.1) - (0.4) (0.4) 16.2 17.4 18.5 19.4

Total EBITDA 2019 - 2021 4.7

Global Generation

& Trading

Global Infrastructures

& NetworNs

Renewable

EnergiesRetail

9.7 25.8 15.0 55.3

TotalEnel X

0.9 (0.8)

Services

& Other

Page 125: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Baseload power price & production sold forward

1241241. Average hedged price; wholesale price for Italy, retail price for Spain.

En

el G

rou

p

2018 2019 2020 2021

Italy (€/MWh) 61.3 56.9 56.2 55.1

Iberia (€/MWh) 57.3 56.5 55.0 55.4

Baseload price

price % price % price % price %

Italy (€/MWh)1 46.0 100% 53.0 90% 58.7 25% - 0%

Iberia (€/MWh)1 67.5 100% 73.4 85% 78.1 40% - 0%

Brazil (USD/MWh) 60.2 100% 60.4 100% 61.9 100% 60.6 100%

Chile (USD/MWh) 79.0 100% 79.3 100% 84.4 100% 84.2 100%

Colombia (USD/MWh) 61.5 100% 65.9 100% 69.9 90% 74.0 60%

Peru (USD/MWh) 49.1 100% 51.8 100% 52.6 100% 55.0 100%

2018 2019 2020 2021

Production sold forward

Page 126: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

1251. Italy, Spain. Chile

2. Rest of the World

Portfolio evolution (bcm, %) Price review impact (€bn, %)

20212019

8%

46%34%

26%41%

19%

20%

32%

14%

2020

19%

24%

15%

1

2018-20 Old

26%

74%

2018-21 New

33%

67%

Already negotiated To be negotiatedLegacy - Oil linked To be contracted/spot

Legacy - Other US LNG + TAP2

Delivery on gas contract renegotiation

En

el G

rou

p

0.8 0.530 31 31

Page 127: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

2019-2021

Environmental Social and

Governance annexes

Page 128: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Agenda

127

Our 2018 ESG delivery

Our 2019-21 ESG targets

Our ESG pillars and backbones

Our commitment to Sustainable Development Goals

Growth across low carbon technologies and services

Operational improvement for a better service

Engaging local communities

Engaging the people we work with

Digitalization and cyber security

Innovation boost

Our Corporate governance

Page 129: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Our 2018 ESG delivery

Page 130: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Our commitment to low carbon growth

129

ES

G d

eliv

ery

Plan actions – 2018-2020

Electrification, storage & demand response

Implementation of environmental

international best practices to selected coal

plants

Development of renewable capacity and

reduction of thermal capacity

43.4 GW renewable capacity1

46.4 GW thermal capacity

2018

Reduction of CO2 specific emissions

82 €mn of investments for environmental

retrofit

0.356 kg/kWheq (-23% vs 2007) 2

6.2 GW demand response

3.0 MW/yr storage

1. Includes managed capacity for 4.2 GW

2. Includes managed production. Considering only consolidated production, CO2 specific emissions are equal to 0.369 kg/kWheq

Page 131: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Assets optimization and innovation

130

ES

G d

eliv

ery

Plan actions – 2018-2020

Foster global partnerships and ‘high

potential’ startups to reap new

technologies and ways to ‘service’ energy

Large scale infrastructure innovation

mostly in grid digitization, smart meters

and charging points

2018

• 49k charging points1

• 43.8 mn smart meters2

• 15 projects with startups in deployment

in the business

• 2 new Innovation Hubs (Catania, Pisa)

1. Public and private charging points installed

2. Includes replacement of smart meters

Page 132: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Engaging local communities

131

ES

G d

eliv

ery

Plan actions – 2018-2020

Access to affordable and clean energy,

mainly in Africa, Asia and Latin America

High-quality, inclusive and fair education

20181

1.0 mn beneficiaries

3.3 mn beneficiaries2

1. Cumulated figures since 2015

2. In the whole Group perimeter, 6.3 mn beneficiaries were reached

Employment and sustainable and

inclusive economic growth1.8 mn beneficiaries

Page 133: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Engaging people we work with

132

ES

G d

eliv

ery

Plan actions – 2018-2020

Climate corporate survey1

Appraise performance of people we work

with1

2018

• 100% of people involved

• 99% of people appraised

• 100% of people involved

• 86% of people participating

1. Eligible and reachable people having worked in the Group for at least 3 months

Global implementation of the diversity and

inclusion policy39% women involved in recruiting

processes

Enable digital skills diffusion among people

we work with35% of people involved in digital skills

training

Page 134: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Digitalization and cyber security

133

ES

G d

eliv

ery

Plan actions – 2018-2020

• Single strategy approach based on

business risk management

• Business lines involved in key

processes: risk assessment, response

and recovery criteria definition and

prioritization of actions

• Integrated information systems (IT),

industrial systems (OT) and Internet of

Things (IoT) assessment and

management

• ‘Cyber security by design’ to define and

spread secure system development

standards

2018

89% of internet web applications protected

through advanced cyber security solutions

Enel’s CERT1 acknowledgement in

deployment in 8 countries2 of presence

and affiliation with international

organizations3

1. Computer Emergency Response Team

2. Italy, Spain, Romania, Argentina, Brazil, Peru, Colombia, Chile

3. First and Trust introducer

15 cyber security knowledge sharing

events held

Page 135: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Our 2019-21 ESG targets

Page 136: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Our ESG pillars and backbones to capture opportunities from energy transition

EN

ER

GY

TR

AN

SIT

ION

Growth across low carbon technologies and services

Operational improvement for a better service

Engaging local communities

Engaging the people we work with

Access to affordable andclean energy(mn beneficiaries)

High-quality, inclusiveand fair education (mn beneficiaries)

Employment and sustainable and inclusive economic growth (mn beneficiaries)

Smart meters1 (mn)

Digitalization capex (€bn)

Charging points2 (k)

Reduction of CO2 specific emissions (kg/kWheq)

Occupational

health & safety

Sound

governance

Environmental

sustainability

Sustainable

supply chain

Econ. &

financial value

creation

2.5

2015-2030

SUSTAINABLE

LONG TERM

VALUE

CREATION

10.0

2015-2030

8.0

2015-2030

0.23

2030

46.9

5.4

455

2021

1. Includes replacement of smart meters

2. Public and private charging stations

ES

G t

arg

ets

Page 137: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Our commitment to Sustainable Development GoalsOur targets are set across the board of the 17 UN SDGs

Pil

lars

Growth across low carbon

technologies & services

Operational improvement for a better

service

Engaging local communities

Engaging the people we work with

Bac

kb

on

es

Occupational Health & Safety

Sound governance

Environmental sustainability

Sustainable supply chain

Economic and financial

value creation

1 2 3 4 5 6 7 8 9 10 11 12 13 1514 16 17

Public commitment with United Nations136

Cro

ss

bo

os

ts

Digitalization and innovation

ES

G t

arg

ets

Page 138: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Growth across low carbon technologies and services

137

Plan actions

Development of renewable capacity and

reduction of thermal capacity in 2019-21

Electrification, storage & demand response

Related targets/commitments

1. Includes managed capacity

2. CO2 specific emissions will be <0.345 kg/kWheq in 2021

Implementation of environmental

international best practices to selected coal

plants

340 €mn of investments for environmental

retrofit in 2019-21

Reduction of CO2 specific emissions 0.23 kg/kWheq in 20302

9.9 GW demand response

173 MW/yr storage

ES

G t

arg

ets

Innovation

boost

+11.6 GW renewable capacity1

-7GW thermal capacity

New products and services and new power production technologies – Electric mobility; home

and business solutions; marine energy; data valorization; integrated storage solutions

Page 139: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Operational improvement for a better service

138

Plan actions

Large scale infrastructure innovation

mostly in grid digitization, smart meters

and charging stations

Related targets/commitments

46.9 mn smart meters1

1. Includes replacement of smart meters

2. Public and private charging stations

3. Engineering and Construction

4. Operation and Maintenance

5.4 €bn digitalization capex in 2019-21

455k charging stations2

ES

G t

arg

ets

Innovation

boost

E&C3 and O&M4 automation and IoT applied to O&M – Generation assets flexibility and

digitalization; networks efficiency; PV panels manufacturing automation; trading automation

Customer centricity – New products and services co-creation and sales increase leveraging on

cross countries synergies

Page 140: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Engaging local communities

139

Plan actions

Access to affordable and clean energy

High-quality, inclusive and fair education

Related targets/commitments1

2.5 mn beneficiaries in 20301

10.0 mn beneficiaries in 20301

1. Cumulated figures since 2015

Employment and sustainable and

inclusive economic growth8.0 mn beneficiaries in 20301

ES

G t

arg

ets

Page 141: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Engaging people we work with

140

Plan actions

Climate corporate survey1

Appraise performance of people we work

with1

Related targets/commitments

• 100% of people involved

• 99% of people appraised

• 100% of people involved

• 86% of people participating

1. Eligible and reachable people having worked in the Group for at least 3 months

Global implementation of the diversity and

inclusion policyRecruiting should ensure equal gender

splitting of the candidates (c. 50%)

Enable digital skills diffusion among people

we work with100% of people involved in digital skills

training

ES

G t

arg

ets

Page 142: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Cross boostsDigitalization and cyber security

141

Plan actions

• Single strategy approach based on

business risk management

• Business lines involved in key

processes: risk assessment, response

and recovery criteria definition and

prioritization of actions

• Integrated information systems (IT),

industrial systems (OT) and Internet of

Things (IoT) assessment and

management

• ‘Cyber security by design’ to define and

spread secure system development

standards

Related targets/commitments

100% of internet web applications

protected through advanced cyber security

solutions

15 cyber security knowledge sharing

events per year

ES

G t

arg

ets

Page 143: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Cross boostsInnovation

142

Plan actions

Bosting Group’s innovation through a tools

portfolio composed by innovation hub

network, crowdsourcing platforms,

intelligence, internal innovation

communities active on forefront topics,

internal entrepreneurship, innovation with

startups and larger companies, suppliers,

universities and research centers

Related targets/commitments

Implementation in the business of 60

projects with startups in 2019-21

Opening of a new Innovation Hub

in 2019-21

ES

G t

arg

ets

Innovation

boost

Page 144: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Our Corporate governance

Page 145: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Control and Risks Committee

Corporate governance structure

144

Corp

ora

te g

ove

rna

nce

1. Chairperson can be considered independent in accordance with TUF criteria

2. Out of which 3 directors drawn from minority slates

Shareholders’ meeting Audit firm

Board of Directors1

(9 members2)

Board of StatutoryAuditors (3 members)

Nomination and

Compensation Committee

Related Parties Committee Corporate Governance and

Sustainability Committee

11%11%

78%

Executive

Non - executive

Independent

BoD’s

composition

Page 146: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Board composition

145

11%

22%67%

46-56 57-66 67-70

Age

diversity

BoD’s members

Non ex (Chairperson)

CGSC

Executive (CEO and

General Manager)

Independent

CGSC RPC

Independent

NCC RPC

Independent

NCC RPC

Independent

CRC NCC

Independent

CRC NCC

Independent

CRC RPC

Independent

CRC CGSC

P. Grieco

F. Starace

A. Antoniozzi

C. Calari

A. Bianchi

P. Girdinio

A. Pera

A. Svelto

A. Taraborrelli

BoD’s Diversity1

3

2

5

5

1

4

Energy

Engineering

Expertise in international environments

Strategy and Finance

Cyber Security

Legal

Skill

diversity

22%

67%

11%

1-3 years 4-6 years

over 6 years

Office

seniority

diversity

67%

33%

Male Female

Gender

diversity

1. Data as of 22 March 2018

Corp

ora

te g

ove

rna

nce

Page 147: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Short-term variable remuneration1

146

1. Management by objectives (MBO) 2018

2. (%) Weight in the variable remuneration

3. FI: Work-related accident Frequency Index

4. FA: Number of Fatal Accidents during 2018, except for road events

Type of target

Economic

Financial

Economic

ESG

Macro objective

Profitability

Cash and debt

management

Efficiency

Safety

Objective

3.9 €bn

26%

11.5 €bn

FI3 2018 =1.17

&

FA4 <=9

4.1 €bn

27%

11.4 €bn

FI3 2018=1.15

&

FA4 <=9

4.2 €bn

28%

11.3 €bn

FI3 2018=1.11

&

FA4 <=9

Ordinary

consolidated net

income

FFO/Consolidated

net financial debt

Consolidated

cash cost

Safety in the

workplace

40%2

30%2

20%2

10%2

Entry level (50%) Target (100%) Over (120%)

Corp

ora

te g

ove

rna

nce

Page 148: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Long-term variable remuneration1

147

Type of target Macro objectiveObjective

Entry (50%) Target (100%) Over I (150%)

1. Long-Term Incentive Plan (LTI) 2018-2020. 30% payment (if any) in the 4th year. 70% payment (if any) in the 5th year (deferred payment)

2. Average TSR Enel compared to average TSR EUROSTOXX Utilities Index-EMU. In case of negative absolute TSR of Enel, the incentive (if any) is reduced – on the basis of

a regressive scale – of the same negative percentage of the absolute TSR of Enel share, multiplied for a constant value equal to 1.53. (%) Weight in the variable remuneration

4. Cumulative for the period 2018-2020

5. For the CEO/General manager. 180% for the other beneficiaries of the LTI Plan 2018-2020

6. In 2020

Over II (280%)5

Market Performance

Enel’s TSR

from 90% to

100% of

TSR Index

Enel’s TSR

from 100%

to 110% of

TSR Index

Enel’s TSR

from 110%

to 115% of

TSR Index

TSR2

50%3

Enel’s TSR

> 115% of

TSR Index

Financial ProfitabilityROACE4

40%3

36.4% 37.5% 38.0% >38.6%

ESG EnvironmentalCO2 emissions

reduction10%3

≤ 380

gCO2/KWheq6

≤ 350

gCO2/KWheq6

≤ 340

gCO2/KWheq6

≤ 330

gCO2/KWheq6

Corp

ora

te g

ove

rna

nce

Page 149: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

This presentation contains certain forward-looking statements that reflect the Company’s management’s current views with

respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking

statements are based on Enel S.p.A.’s current expectations and projections about future events. Because these forward-looking

statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed

in or implied by these statements due to any number of different factors, many of which are beyond the ability of Enel S.p.A. to

control or estimate precisely, including changes in the regulatory environment, future market developments, fluctuations in the

price and availability of fuel and other risks. You are cautioned not to place undue reliance on the forward-looking statements

contained herein, which are made only as of the date of this presentation. Enel S.p.A. does not undertake any obligation to

publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of

this presentation. The information contained in this presentation does not purport to be comprehensive and has not been

independently verified by any independent third party.

This presentation does not constitute a recommendation regarding the securities of the Company. This presentation does not

contain an offer to sell or a solicitation of any offer to buy any securities issued by Enel S.p.A. or any of its subsidiaries.

Pursuant to art. 154-bis, paragraph 2, of the Italian Unified Financial Act of February 24, 1998, the executive in charge of

preparing the corporate accounting documents at Enel, Alberto De Paoli, declares that the accounting information contained

herein correspond to document results, books and accounting records.

Disclaimer

148

Page 150: Investor presentation - September 2019 - Enel · Investor Presentation September 2019. Agenda Investor Presentation –Strategic Plan 2019-21 Enel Today 2019-2021 Our Vision & Positioning

Contact us

Contacts

Email [email protected]

Phone +39 06 8305 7975

Monica GirardiHead of Group Investor Relations

Investor Relations teamFederico Baroncelli

Francisco Basauri

Serena Carioti

Alessia Di Ninno

Federica Dori

Fabrizio Ragnacci

Federica Todaro

Noemi Tomassi

Emanuele Toppi 149

Follow us

Website

Enel.com

Mobile App

Enel Investors

Channels