Enel Today
Evolution since 20141
Global diversified operator1
Countries of presence4
Networks
#1 private network operator globally
65 mn end users and 44 mn digital meters
+4.5 mn end users
+8.4 mn smart meters3
Renewables
#1 renewable operator
~40 GW renewable capacity2
+6 GW
+80% additional capacity
Thermal generation
~47 GW thermal capacity
Highly flexible and efficient assets
10 GW capacity closure
Retail
~20 mn free retail customers
#1 in Italy, Iberia and top 3 in Latam
+5 mn free customers
+20% electricity sold in free market
e-Solutions
+5.7 GW demand response
1. 2014-2017 delivery. As of 2017E
2. Consolidated capacity equal to 37 GW (including 25 GW of large hydro)
3. Including replacement of smart meters 2.0 in Italy equal to 1.4 mn. Enel global market share equal to 24% (BNEF 3Q17 Energy Smart technologies market Outlook)
4. Presence with operating assets
North & Central America
Italy
Iberia
Europe & North Africa
South America
Subsaharian Africa & Asia
2017 Group EBITDA
NetworksRenewablesThermal generationRetail
1. As of 2017E. Breakdown excludes -0.3 €bn from holding and services
2. Presence with operating assets
Delivery: business drivers
Networks
Retail
Renewables
Thermal
Generation
47% Group EBITDA
65 mn end-users
43.5 mn smart meters
RAB ~40 €bn
16% Group EBITDA
~15 mn power customers in free market
~5 mn gas customers in free market
27% Group EBITDA
10% Group EBITDA
Macro-economic trends
Revised assumptions for commodities and prices
Electricity demand South America (Change YoY)
Italy power price (€/MWh)
Spain power price (€/MWh)
Coal price - API2 (USD/ton)
CPI all countries (% YoY)1
FX EUR/USD
1. It includes: Italy, Spain, Russia, Romania, United States, Mexico, Argentina, Brazil, Chile, Colombia, Perù
Key principles
Strategic pillars
Digitalization
2018-20 cumulative digitalization capex2018-20 cumulative benefits1 Focus on assets, customers and people development
1. In real terms
Customer focus
Commodity retail
From long energy to long customers
1. It includes power and gas customers. South America number of customers <1mn
2. Including power sold with PPAs
Global retail
Growing volumes and efficiency driving EBITDA increase
1. Including regulated EBITDA. Romania equal to -0.05 in 2017 and +0.04 in 2020
2. Power and gas
3. Italy, Iberia and Romania
e-Solutions 2020 targets
Addressing new customer needs with innovative technologies
1. Only A&B clusters
Operational efficiency
Digitalization enables acceleration on operational efficiency
1. Net of network connections
Focus on opex
Digitalization will accelerate further opex reduction
1. Total fixed costs in nominal terms (net of capitalizations). Impact from acquisitions is not included.
2. Of which CPI +0.7 €bn and forex -0.1 €bn.
Focus on opex
Digitalization will accelerate further opex reduction
3. In real terms. Adjusted for delta perimeter
4. Excludes nuclear in Iberia
Industrial growth
2018-20 capex plan
Rebalancing capex in networks and developed countries
1. Net of connections in networks. Total growth capex includes other
2. North & Central America
focus on growth capex and growth EBITDA
Growth capex increase and re-allocation driving higher returns vs previous plan
1. Net of connections. Rounded figures
2. Old target 2017-19 equal to 4 €bn 2017-19 minus contribution from connections (300 €mn per year).
focus on growth EBITDA
Increased contribution from networks and e-solutions
1. Portion of committed capex on total yearly amount
2. Net of connections equal to an average of 300 €mn
Group simplification & active portfolio management: the new plan
Higher minority buy-outs leading to 3% earnings accretion
Shareholder remuneration
Confidence on strategy delivery and revised plan allows improved shareholder return
Enel today: diversified and resilient operator
Low volatility in earnings
1. Includes Retail and e-Solutions
2. Regulated, i.e. Iberian Island, essential plants, contracted under long term PPAs
3. Contracted under long term PPAs and incentivized
Main financial data
EBITDA and Net income evolution
EBITDA
Growth and efficiency driving performance
1. Rounded figures
Group net income
Accelerating net income accretion
Financial plan and strategy
Enel transformation and 2020 targets
Continuous improvement in cash generation, profitability and returns
2018-20 cumulated cash flow (€bn)
Stronger organic cash flow generation versus the previous plan
1. Accruals, releases, utilizations of provisions in EBITDA (i.e. personnel related and risks and charges). Inclusive of bad debt provision accruals
2. Including 3.4 €bn BSO capex
3. Including +3.2 €bn disposals and -4.7 €bn minority buyouts and acquisitions
4. Net of connections
Group targets
Contacts
Investor relations