Investor presentation. September 2016

Transcription

1 Investor presentation September 2016

2 Investor presentation Agenda 1H 2016 consolidated results pag. 2 FY 2015 consolidated results : New regulatory period for electricity distribution in Italy Strategic Plan pag. 27 pag. 45 pag. 51 1H 2016 consolidated results annexes pag. 79 FY 2015 consolidated results annexes Strategic Plan annexes pag. 106 pag

3 Investor presentation 1H 2016 consolidated results Delivery on strategic plan July 28, 2016

4 1H 2016 consolidated results Opening remarks EBITDA net of forex up 10% on like-for-like basis Latam grows by 40% net of forex despite economic slowdown Outperformance of retail business offsets weak price environment in Italy and Iberia Operational efficiency delivery on track +0.6 GW of additional capacity, more than 1.5 GW tenders awarded +0.2 mn end users in Latam and +1.2 mn digital meters installed 3.7 bn 1 from asset rotation and Slovenske transaction closed EGP implementing country level optimization and Latam merger on track 1. Impact on net debt as of July

5 1H 2016 consolidated results Financial highlights ( mn) 1H H 2015 yoy Like-for-like Revenues 34,150 37,632-9% Reported EBITDA 8,053 7,961 +1% Ordinary EBITDA 1 7,929 7,688 +3% +5% (5) Reported EBIT 5,210 5,084 +2% Ordinary EBIT 5,125 4,811 +7% Reported Group net income 1,834 1,833 -% Group net ordinary income 1,742 1,604 +9% +13% (6) Capex 2 3,714 3, % Net debt 3 38,138 37,545 (4) +2% FFO 4,150 3, % 1. Excludes extraordinary items 1H 2016: +124 mn Hydro Dolomiti capital gain 1H 2015: +141 mn SE Hydropower capital gain and +132 mn 3Sun 2. Includes capex related to assets held for sale related to Slovenske Elektrarne for 249 mn in 1H 2016 and 254 mn in 1H FY 2015: net of assets held for sale (841 mn mainly for Slovenske Elektrarne). 1H 2016: net of assets held for sale (1,224 mn mainly for Slovenske Elektrarne) 4. As of December 31, Excludes +262 mn one-offs in 2015 and +117 mn in Excludes +123 mn one-offs in 2015 and +68 mn in

6 1H 2016 consolidated results Delivery on strategic pillars strategic plan targets 1H 2016 delivery Operational efficiency 2016 cash costs target: -0.9 bn Industrial growth 2016 growth EBITDA target: +0.8 bn Group simplification EGP integration and Latam restructuring Active portfolio management 6 bn capital recycling over Shareholder remuneration Minimum DPS 2016: 0.18 /sh Total savings of 0.4 bn 0.3 bn growth EBITDA in 1H growth EBITDA fully secured EGP implementing country level optimization Latam merger on track 70% plan finalized and Slovenske closed 2016 DPS at 0.18 /sh, +13% yoy 5

7 1H 2016 consolidated results Operational efficiency 1 ( mn) Maintenance capex Opex 2 Cash cost -14% -4% -7% 4,412 4,219 5,758 5,376 1,346 1,157 1H H target: 3.1 bn 2019 target: 2.8 bn 2 1H H target: 8.5 bn 2019 target: 8.3 bn 1H H target: 11.6 bn 2019 target: 11.1 bn 1. In nominal terms 2. Adjusted figure: -12 mn one-off in 2015, +31 mn in

8 1H 2016 consolidated results Operational efficiency: opex evolution Opex evolution 1,2 ( mn) Opex by business 3-4% Networks /end user -7% -18% ,412 1H 2015 (103) 15 (105) Forex & CPI 4,219 Growth Efficiency 1H 2016 Renewables k /MW Conventional generation 4 k /MW Staff % of Total Fixed Costs FY 2014 FY 2015 LTM % -20% FY 2014 FY 2015 LTM % -10% FY 2014 FY 2015 LTM p.p. -2 p.p. 24% 24% 25% 22% FY 2014 FY 2015 LTM 2019 Savings on track to meet with plan targets 1. Total fixed costs in nominal terms (net of capitalizations). Impact from acquisitions is not included 2. Adjusted figure: +12 mn one-off in 2015, -31 mn in In nominal terms figure restated for delta perimeter 7

9 1H 2016 consolidated results Industrial growth: operational achievements Networks End users +0.7 mn +3.6 mn Smart meters +3.2 mn +30 mn End users (mn) Smart meters (mn) Retail Free customers Free customer base 3 (mn) mn +4.1 mn Additions Renewables 41% Total renewables GW +9.2 GW +0.6 GW in 1H16 Additions Total Group capacity Conventional generation FY H % Total renewables GW +0.6 GW Renewables Hydro 1 Hydro 1 33% Renewables 32% 2 9% Nuclear 10% 6% Nuclear ~90 GW ~87 GW 6% CCGT Oil % 14% Oil 16% & Gas 18% CCGT & Gas 19% Coal 19% FY 2014 FY H 2016 FY 2014 FY H 2016 Coal 1. Includes EGP hydro operations 2. Includes all other renewables 3. Only Italy and Iberia 8

10 1H 2016 consolidated results Industrial growth: capex in execution growth capex In execution by geography In execution by business By year By COD 2 33% 9% 6% 17 bn 16% 8.9 bn 8.9 bn 52% In operation In execution Tenders awarded To be addressed Latam Italy 2% 6% 28% North America 39% 9% Iberia RoW East Europe 42% 1% Networks Renewables 7% 50% Generation Other % % % % % % % % 2016 EBITDA growth secured, with 70% secured in outer years 1. Excludes assets held for sale related to Slovenske Elektrarne 2. Refers to capacity in Generation and Renewables 9

11 1H 2016 consolidated results Active portfolio management ~6 bn ~6 bn Disposals already finalized 1 ( bn) Cashed-in 1,2 Additional growth capex >2 1.0 bn Slovenske Elektrarne EGP Portugal Already finalized 4.1 bn Already cashed-in 3.7 bn Minority buy-outs <2 Acquisitions >2 0.2 bn 0.6 bn EGP North America 0.4 SE Hydropower - SF Energy 0.4 Hydro Dolomiti 0.3 Other Source of funds Use of funds Total % of 5-years plan already finalized 1. Impact on net debt 2. As of July Equity consideration for 50% Enel s stake equals to 375 mn 10

12 1H 2016 consolidated results Group simplification: update on Latam restructuring Minimun 90 trading days 2Q Q Q 2016 First day of trading of new companies and share distribution in Chilean stock exchange Share distribution in New York Stock Exchange Annual Ordinary Meetings of Enersis, Endesa Chile and Chilectra EGMs to approve the merger Lauching Tender Offer for Endesa Americas End of Tender Offer 21 st Apr th Apr th - 28 th Apr 2016 End Sept days after EGMs 3 Minimun of 60 days of trading + 30 days prior to EGMs 1 Withdrawal right period (up to 30 days after the EGMs) 2 1. Exercise price of withdrawal right equal to the weighted average price of the 60 trading days preceding the 30th trading day prior to the EGM; except Chilectra that will be at book value 2. Dissenting/absent shareholders may exercise their withdrawal rights up to 30 days after the EGM and sell their shares to the Company. Capped at 7.72% of the shares in the case of Endesa Americas and 10% of the shares in the case of Enersis Americas, but only to the extent that such withdrawal right level will not lead any shareholder to exceed the maximum ownership of 65% of Enersis Americas after the merger is formalized 3. End of Tender Offer expected ~35 days after the EGMs 11

13 1H 2016 consolidated results Group simplification: Enel Green Power Spain Change in corporate structure Rationale Key figures Simplification at country level 1.7 GW installed 10 years average life 100% 70.1% Integrated energy management 180 mn EBITDA in % 100% EGPE Improving supply & generation balance Generation mix diversification 2.0 bn Enterprise Value 11.4x EV/EBITDA 1.2 mn/mw Initiation of country level optimization 12

14 1H 2016 consolidated results Acquisition and merger of Metroweb into Enel Open Fiber Corporate structure Rationale New business plan Accelerated fiber deployment 3.7 bn capex +1.2 bn 50% 50% Holdco Leverage on Metroweb industrial know-how 250 cities +26 cities 30% Enel Open Fiber + Metroweb Coverage of all largest cities One stop platform form telco operators Lower risk profile 9.5 mn homes +2 mn EBITDA of 300 mn in % EBITDA margin Accelerating Enel Open Fiber business plan 13

15 Investor presentation 1H 2016 consolidated results Financial results July 28, 2016

16 1H 2016 consolidated results Ordinary EBITDA evolution ( mn) +3% +5% 7,688 (262) 7, (392) Retail 335 7, ,929 1H 2015 ordinary 1 2 One-offs 1H 2015 adjusted Growth Efficiency Scenario Energy margin & retail Forex 1H 2016 adjusted One-offs 1H 2016 ordinary 1. Includes: +184 mn CO2 swap transaction in Iberia generation, +48 mn in distrubution in Argentina, -16 mn bad weather extra costs in distribution In Italy; +23 mn Ecotax Almaraz and +23 mn other 2. Includes: +67 mn Ecotax in Iberia generation and +28 mn provision release and +19 mn capital gain on Compostilla RE in Iberia, +3 mn other 15

17 1H 2016 consolidated results Group adjusted EBITDA by business ( mn) +5% Retail 1,085 mn Renewables 946 mn 7, (17) 338 (86) (392) 7,812 Retail 1,421 mn Renewables 920 mn Generation 1,858 mn Generation 2,018 mn Networks 3,529 mn Networks 3,522 mn 1H 2015 adjusted Global Infrastructure & Networks Global Generation & Trading Global Renewable Energies Retail Services & holding Forex 1H 2016 adjusted 16

18 1H 2016 consolidated results Global Renewable Energies: EBITDA analysis ( mn) -3% North America 194 mn Latin America 166 mn (3) (132) (1) (9) 920 North America 234 mn Latin America 198 mn Europe mn Europe mn 1H 2015 ordinary Growth Efficiency Scenario & resource Perimeter & other 1 Forex 1H 2016 ordinary 1. Mainly related to Portugal disposal and solar assets deconsolidation. Includes +30 mn related to price adjustment on Portugugal sale 2. Includes Italy, Iberia, Rest of Europe and other countries 17

19 1H 2016 consolidated results Group adjusted EBITDA by geography ( mn) +5% Renewables 946 mn East Europe 392 mn Latam 1,397 mn 7, (21) (17) 6 (392) 7,812 Renewables 920 mn East Europe 353 mn Latam 1,636 mn Iberia 1,731 mn Iberia 1,747 mn Italy 3,016 mn Italy 3,205 mn 1H 2015 adjusted Italy Iberia Latam East Europe Global Renewable Energies Other Forex 1H 2016 adjusted 18

20 1H 2016 consolidated results EBITDA Italy by business 1 ( mn) +7% +6% Retail 694 mn 3, ,016 (45) (38) 303 (31) 3,205-3,205 Retail 997 mn Generation 421 mn Generation 383 mn Networks 1,807 mn Networks 1,778 mn 1H 2015 ordinary 2 One-offs 1H 2015 adjusted Infrastructure & Networks Generation & Trading Retail Services & holding 1H 2016 adjusted One-offs 1H 2016 ordinary 1. Excludes EBITDA from Global Renewable Energies 2. Bad weather extra costs in distribution 19

21 1H 2016 consolidated results From ordinary EBITDA to net ordinary income ( mn) (2,804) 7,929 (1,475) 5,125 3,650 (1,150) (758) 1,742 Ordinary EBITDA D&A EBIT Financial expenses & other 1 EBT Income taxes Minorities Group net ordinary income 1H 2015 ( bn) 7.7 (2.9) 4.8 (1.3) 3.5 (1.2) Change YoY +3% -3% +7% +16% +3% -3% (0.8) % Net income accretion increasing on a quarterly basis 1. Includes other financial expenses (-240 mn in 2016, +45 mn in 2015) and results from equity investments (+52 mn in 2016, +8 mn in 2015) 20

22 1H 2016 consolidated results Cash flow ( mn) 7,929 (608) (593) (1,123) (1,455) (3,714) 4,150 1,157 Maintenance 2,557 Growth 436 (2,140) (1,704) 211 (1,493) Ordinary EBITDA Provisions 1 Working capital & other Income taxes Financial expenses 2 FFO Capex Free cash flow Net dividend paid Net free cash flow 3 Extraordinary items Net free cash flow after extraordinary items 1H 2015 ( bn) 7.7 (0.6) (1.8) (0.6) (1.6) 3.0 (3.1) (0.1) (2.0) (2.1) 0.6 (1.4) Delta YoY +3% -6% -66% +77% -10% +37% +20% n.a. +8% +17% -67% -5% Continuous effort in stabilizing working capital and maximizing cash generation 1. Accruals, releases, utilizations of provisions in EBITDA (i.e. personnel related and risks and charges). It includes bad debt provision accruals equal to 340 mn 2. Funds from operations after working capital change 3. Includes Slovenske Elektrarne net free cash flow of -253 mn 21

23 1H 2016 consolidated results Net debt evolution ( mn) +593 Dec 31, 2015 continuing operations Net free cash flow Extraordinary activities Forex asset held for sale 1 June 30, 2016 continuing operations 37,545 38,138 1,704 (211) (517) (383) Net debt on track to meet year-end guidance 1. FY 2015: net debt of assets held for sale of -841 mn 1H 2016: net debt of assets held for sale -1,224 mn 22

24 1H 2016 consolidated results Debt and financial expenses ( mn) Gross and net debt Net financial expenses on debt -7% -3% 52,760 48,938 10,640 5,515 4,575 5,285 1,323 1,287 37,545 38,138 FY H H H 2016 Net debt Financial receivables Cash Liability management underpins future financial expenses reduction 23

25 1H 2016 consolidated results Forward sales 1 Italy 2016 Italy 2017 Regulated / quasi regulated Price driven Spread driven 62 TWh 10% 30% 60% 90% Price 2 Spread 3 Achieved 46 /MWh vs. plan 1 /MWh Regulated / quasi regulated Price driven Spread driven 65 TWh 10% 30% 60% 42% Price 2 Spread 3 Achieved 41 /MWh vs. plan 1 /MWh Expected production Hedged production Spain 2016 Spain 2017 Expected production Hedged production Regulated / quasi regulated Price driven Spread driven 73 TWh 25% 40% 35% 100% Price 2 Spread 3 Achieved 57 /MWh vs. plan 1 /MWh Regulated / quasi regulated Price driven Spread driven 74 TWh 25% 40% 35% 50% Price 2 Spread 3 Achieved 50 /MWh vs. plan 1 /MWh Expected production Hedged production Expected production Hedged production Includes renewable production 2. Average hedged price 3. Average on clean spark spread and clean dark spread 4. Includes only mainland production Hedged production 24

26 FY 2015 consolidated results Shareholder remuneration Dividend policy Minimum DPS 1 ( /sh) +13% CAGR +14% 50% 55% 60% 65% 65% % 55% 60% Implicit payout 1. Including the impact of EGP integration Proposed dividend payment on 2015 results of 0.16 per share Implicit payout ratio of 55% 25

27 Investor presentation Group targets 2015 Old 2016 New CAGR (%) Ordinary EBITDA ( bn) ~+4% Net ordinary income ( bn) ~+11% Minimun DPS /sh 0.18 /sh 0.18 /sh - ~+17% Pay-out 50% 2 55% 55% 60% +15 p.p FFO/Net Debt 25% 23% 25% 26% ~+4 p.p. 1. Paid on June 22 nd, Implicit payout of 55% as a consequence of newly issued shares after EGP integration 26

28 Investor presentation FY 2015 consolidated results Delivery on strategic plan March 23, 2016

29 FY 2015 consolidated results Financial targets delivered target vs. target 2014 yoy Recurring EBITDA ( bn) In line % Net ordinary income ( bn) In line 3.0-3% DPS ( /sh) In line % Net debt ( bn) Ahead % FFO/Net debt 25% 23% Ahead 26% -1 p.p. 28

30 FY 2015 consolidated results Operational efficiency 1 ( mn) Maintenance capex Opex Cash cost -7% -2% -3% 3,585 3,329 9,252 9,085 12,838 12,413 FY 2014 FY target: 3.4 bn 2016 target: 3.1 bn 2019 target: 2.8 bn FY 2014 FY target: 9.1 bn 2016 target: 8.5 bn 2019 target: 8.3 bn FY 2014 FY target: 12.5 bn 2016 target: 11.6 bn 2019 target: 11.1 bn 1. In nominal terms 29

31 FY 2015 consolidated results Operational efficiency: opex evolution Opex evolution 1 ( bn) Opex by business 2-2% Networks /end user -3% -18% FY (0.3) Forex & CPI 9.1 Growth Efficiency FY 2015 Renewables k /MW Conventional Generation 3 k /MW Staff % of Total Fixed Costs FY % FY FY 2014 FY % FY 2014 FY % -20% -10% -8% 24% 24% 22% FY 2014 FY Savings in line with guidance more than offsetting inflation and growth 1. Total fixed costs in nominal terms (net of capitalizations). Adjusted figure net of personnel provisions. Impact from acquisitions is not included 2. In nominal terms figure restated for delta perimeter 30

32 FY 2015 consolidated results Industrial growth: growth EBITDA 70% of 2017 growth EBITDA already secured 70% of cumulative EBITDA already secured Spread over WACC >200 bps Average time to EBITDA <2 years Growth EBITDA ( bn) 0.4 Already covered by projects in execution 0.8 >90% % FY growth EBITDA by business 8% 12% 32% 0.4 bn 48% Networks Generation Retail Renewables High growth visibility coupled with shorter time to EBITDA 31

33 Investor presentation FY 2015 consolidated results Financial results March 23, 2016

34 FY 2015 consolidated results Financial highlights ( mn) FY 2015 FY 2014 yoy Revenues 75,658 75,791 -% EBITDA reported 15,297 15,757-3% Ordinary EBITDA 1 15,040 15,502-3% EBIT reported 7,685 3, % Ordinary EBIT 9,215 9,259 -% Group net income reported 2, % Group net ordinary income 2,887 2,994-3% Capex 2 7,762 6, % Net debt 3 37,545 37,383 -% FFO/net debt 25% 26% -1 p.p. 1. Extraordinary items FY 2014: +50 mn remeasurement SE Hydropower fair value, +82 mn Artic Russia, +123 mn LaGeo - FY 2015: +141 mn SE Hydropower capital gain, +116 mn 3Sun 2. Includes assets held for sale related to Slovenske Elektrarne for 649 mn in FY 2014: net of assets held for sale (-620 mn mainly for Slovenske Elektrarne). FY 2015: net of assets held for sale (-841 mn mainly for Slovenske Elektrarne) 33

35 FY 2015 consolidated results Ordinary EBITDA evolution ( bn) -3% (0.9) (0.1) (1.5) Total personnel (0.9) FY 2014 ordinary Growth Efficiency Scenario hydraulicity & regulatory Forex Release nuclear provisions Release employees benefit provisions Early retirement provisions Other FY 2015 ordinary 34

36 FY 2015 consolidated results Group ordinary EBITDA by business ( mn) -3% Retail 1,915 mn 15, (393) (63) (384) Retail 1,826 mn Renewables 1,815 mn Generation 4,555 mn Networks 7,374 mn Provisions ( mn) Networks (439) Generations (179) Renewables (42) Retail (105) Holding (169) Total personnel (934) Nuclear ,040 Renewables 1,710 mn Generation 4,533 mn Networks 7,241 mn FY 2014 ordinary Global Infrastructures & Networks Global Generation & Trading Renewable Energies Retail Services & holding Provisions FY 2015 ordinary Including provisions (133) (22) (105) (89) (113) 35

37 FY 2015 consolidated results Enel Green Power: EBITDA analysis ( mn) -6% 178 (27) (160) 102 (42) (21) (155) North America 276 mn 1,815 1,710 North America 352 mn Latin America 202 mn Latin America 364 mn Europe 3 1,337 mn Europe mn FY 2014 ordinary Growth Efficiency Scenario & resource Forex Personnel provisions 1 Perimeter 2 Other FY 2015 ordinary 1. Mainly related to France disposal 2. Includes 3Sun for 95 mn and the capital gain on sale of French assets for 31 mn in Includes Italy, Iberia, Rest of Europe and other countries 36

38 FY 2015 consolidated results EBITDA Italy by business ( mn) -5% 177 (339) 317 (24) (467) Retail 1,124 mn 6,293 5,957 Retail 1,336 mn Generation 1,107 mn Generation 656 mn Networks 3,935 mn Networks 3,933 mn FY 2014 ordinary Infrastructures & Networks Generation & Trading Retail Services & holding Provisions FY 2015 ordinary 37

39 FY 2015 consolidated results Group ordinary EBITDA by geography ( mn) -3% Renewables 1,815 mn East Europe 1,210 mn Latam 3,092 mn Iberia 3,203 mn Italy 6,293 mn 15, (452) (63) (47) (384) Provisions ( mn) Italy (467) Iberia (363) Latam (7) Renewables (42) Holding (55) Total personnel (934) Nuclear ,040 Renewables 1,710 mn East Europe 1,308 mn Latam 3,167 mn Iberia 3,111 mn Italy 5,957 mn FY 2014 ordinary Italy Iberia Latam East Europe Renewable Energies Services & holding Provisions FY 2015 ordinary Including provisions (336) (92) (105) (102) 38

40 FY 2015 consolidated results From ordinary EBITDA to net ordinary income ( mn) (5,825) 15,040 9,215 (2,404) 6,811 (2,280) (1,644) 2,887 Ordinary EBITDA D&A EBIT Financial expenses & other 1 EBT Income taxes 2 Minorities Group net ordinary income FY 2014 ( bn) 15.5 (6.2) 9.3 (3.0) 6.3 (2.0) Change YoY -3% -7% -% -20% +9% +14% % 3.0-3% Higher EBT due to lower D&A and financial expenses 1. Includes other financial expenses (-311 mn in 2014, +158 mn in 2015) and results from equity investments (141 mn in 2014, 52 mn in 2015) 2. Includes negative one-off for -164 mn for the adjustment on deferred taxes following the approval of 2016 Italy Budget Law and the IRAP reform 39

41 FY 2015 consolidated results From reported Group net income to Group net ordinary income ( mn) 909 (218) 182 2,887 3,069 2,196 Reported Group net income Impairment 1 Extraordinary items 2 Group net ordinary income Deferred taxes budget law Italy Pro-forma Group net ordinary income ,062 (1,585) 2,994 Delta yoy +329% -3% Stripping out one-off items net ordinary income above guidance 1. Includes 295 mn Slokenske Elektrarne, 408 mn Enel Russia and 91 mn EGP Romania, Upstream gas 115 mn 2. Includes 139 mn SE Hydropower capital gain and 79 mn 3Sun 40

42 FY 2015 consolidated results Cash flow ( mn) 15,040 (932) (427) (1,516) (2,709) (7,762) 9,456 3,329 Maintenance 4,433 Growth 1,694 (2,199) (505) 1, Ordinary EBITDA Provisions 1 Working capital & other Income taxes Financial expenses 2 3 FFO Capex Free cash flow Net dividend paid Net free cash flow 4 Extraordinary Net free items 5 cash flow after extraordinary items 2014 ( bn) 15.5 (2.0) 0.5 (1.4) (2.9) 9.7 (6.7) 3.0 (1.9) Delta YoY -3% -53% n.a. +9% -8% -3% +16% -44% +17% n.a. -24% -73% Continuous effort in improving FFO after maintenance capex 1. Accruals, releases, utilizations of provisions in EBITDA (i.e. personnel related and risks and charges). It includes bad debt provision accruals equal to 828 mn 2. Not including dividend received from third parties for 0.2 bn in 2014 and 0.1 bn in Funds from operations after working capital change 4. Includes SE that recorded a negative net free cash flow for -362 mn 5. Includes impact from disposals for 1.6 bn and acquisitions and minority buyout for 0.4 bn 41

43 FY 2015 consolidated results Net debt evolution ( mn) +162 Dec 31, 2014 on continuing operations 2014 asset held for sale Net free cash flow Forex Extraordinary activities asset held for sale 2 Dec 31, 2015 on continuing operations 37,383 37,545 (620) (505) (1,137) 1, Net debt reduction above expectations despite forex effect 1. Includes impact from disposals for 1.6 bn and acquisitions and minority buyout for 0.3 bn 2. Includes Slovenske Elektrarne for 952 mn and Compostilla -111 mn 42

44 5.1% 4.9% 4.7% 4.5% 4.3% 4.1% 3.9% 3.7% FY 2015 consolidated results Debt and financial expenses ( mn) Gross and net debt Gross debt breakdown 1 Net financial expenses on debt -7% 57,032 52,760 13,088 10,640 6,561 4,575 37,383 37, % 6.7% 2.5% 5.4% Cost of debt 5.1% 5.0% 7% 20% 8% 21% 19% 19% 54% 52% 6.3% 7.1% 2.7% 4.7% -7% 2,819 2,613 FY 2014 FY 2015 Net debt Financial receivables Cash FY 2014 FY 2015 Bonds 2 Banks and other Emerging markets Cost of gross debt 3 Hybrid bonds FY 2014 FY 2015 Accelerating reduction in interest charges in the last quarter of the year 1. Calculated on the average stock of debt 2. Excludes emerging markets and hybrid 3. Includes Latam and EGP perimeter 43

45 FY 2015 consolidated results Merchant exposure: focus on Italy & Iberia ( mn) 2015 Group EBITDA 2015 EBITDA Italy & Iberia 2015 net production Italy & Iberia 12% 16% 36% 15 bn 9.9 bn 146 TWh 43% 88% 84% 21% Merchant exposure Merchant exposure 1 1 Non merchant exposure Non merchant exposure Price driven 2 Spread driven Regulated / Quasi-regulated 3 Merchant exposure mitigated ad different levels 1. Includes EBITDA renewables not covered by incentives 2. Includes Oil & Gas, Coal and CCGT 3. Includes Iberian Islands and green certificates 44

46 Investor presentation : New regulatory period for electricity distribution in Italy January 21, 2016

47 New regulatory period for electricity distribution in Italy Summary of the regulatory decisions Resolutions Longer regulatory periods Published 654/ Tariff general framework 583/ WACC 646/ Quality of service and output based regulation To be published Final allowed revenues Smart meters regulation Main changes Key confirmations Pillars for the future New WACC methodology Regulatory lag reduction Gradual approach to the extension of asset life Allowed opex No exposure to energy volumes Quality of service New framework for innovative investments Smart meters regulation draft Totex regulation starting from

48 New regulatory period for electricity distribution in Italy Main changes: longer regulatory periods Previous regulation ( ) New regulation ( ) Tariff regulatory period: 8 years Tariff/WACC regulatory period: 4 years WACC mid term review only for risk free rate Tariff mid term review Start of TOTEX regulation WACC regulatory period: 6 years WACC mid term review already defined for all main parameters Greater stability thanks to longer regulatory periods 47

49 New regulatory period for electricity distribution in Italy Main changes: new WACC methodology (2/2) Real risk-free rate % Update rules ( ) October September 2018 high rating Countries risk free rate 0.5% floor Country risk premium 1% Based on Italy-Germany 10 year bond spreads change in 2018 vs Equity risk premium β unlevered Debt spread Gearing = D/(D+E) Tax shield Tax rate 5.5% % % 34.4% Based on the new Risk Free Rate and on a fixed 6% Total Market Return Potential update in 2019 within tariff regulatory period No interim update Alignment to European benchmark - cap 0.5 To be updated at the end of 2018 To be updated at the end of 2018 Inflation rate 1.5% European Central Bank forecast at the end of 2018 F Factor 0.5% Resulting from the update of Tax rate, Tax shield and Inflation WACC real pre-tax 5.6% 48

50 New regulatory period for electricity distribution in Italy Key confirmations: allowed opex Previous regulation New regulation Distribution 2.8% 1.9% Metering Weighted average 7.1% 3.1% X-factor set to return to consumers the 2 nd and 3 rd regulatory period extraefficiencies (by 2015 and 2019 respectively) 1% 1.8% X-factor set to return to consumers the 3 rd and 4 th regulatory period extraefficiencies (both by 2019) X-factors set only to return previous periods extra-efficiencies by

51 New regulatory period for electricity distribution in Italy Estimated revenues and RAB Allowed revenues 1 ( bn) 2016 revenues breakdown -5% 4.81 Depreciation 37% bn 25% RAB Opex 38% Estimated Tariff RAB 2 21 bn Estimated 2016 revenues in line with November plan assumptions Enel estimates based on criteria foreseen by the resolution and on tariffs applied to customers; final allowed revenues will be published in April - July 2. Including estimated NPV of depreciation of electromechanical meters as per Resolution n. 654

52 Investor presentation Strategic Plan November 18, 2015

53 Opening remarks Enel today 1 North America Capacity: 2.5 GW Mexico & Central America Capacity: 1.0 GW Latin America Capacity: 18.6 GW Networks: 0.32 mn km End users: 15.3 mn Africa Capacity: 0.2 GW India Capacity: 0.2 GW Enel Group Capacity: 87.1 GW Networks: 1.87 mn km End users: 61.5 mn Free customers: 23.1 mn Italy Capacity: 27.8 GW Networks: 1.14 mn km End users: 31.6 mn Free customers: 10.5 mn Iberia Capacity: 22.8 GW Networks: 0.32 mn km End users: 11.9 mn Free customers: 12.5 mn East Europe Capacity: 14.0 GW Networks: 0.09 mn km End users: 2.7 mn Free customers: 0.1 mn 1. Data as of June 30, Presence with operating assets Global diversified operator Countries of presence 2 52

54 Strategic update Key pillars: revised targets Operational efficiency Industrial growth Group simplification Active portfolio management Shareholder remuneration 53

55 Strategic update Operational efficiency: opex evolution ( bn) Opex evolution 1 Opex by business 3 Networks /end user % 47.9 March 15 Plan (1.4) (0.3) 8.3 Renewables k /MW % % -8% March 15 Plan -1.1 bn Conventional Generation 4 k /MW % % 2014 CPI & FX 2 Growth Efficiency Disposals 2019 Staff % of Total Fixed Costs 24% -8% 22% % Additional savings and strong acceleration in trajectory 1. Total fixed costs in nominal terms (net of capitalizations). Adjusted figure net of accruals. Impact from acquisitions is not included 2. Of which CPI +0.6 bn and FX -0.4 bn 3. In nominal terms figure restated for delta perimeter 54

56 Strategic update Operational efficiency: focus on opex ( bn) 2019 efficiency target Headcounts (n. 000) -14% Procurement 10% IT 10% Personnel 25% 1.4 bn Other external costs 25% 30% Technical optimisation A next level efficiency plan 55

57 Strategic update Key pillars: revised targets Operational efficiency Industrial growth Group simplification Active portfolio management Shareholder remuneration 56

58 Strategic update Industrial growth: capex plan ( bn) Total capex Growth capex by business Growth capex by geography % % % % 17% 32% 49% -36% +29% +30% % 1% 9% 34% 53% 95% % 12% 1% 12% 21% 19% 25% 20% 48% 41% March'15 Plan Growth Maintenance Plan update March'15 Plan Plan update Renewables 1 Networks Generation Retail Other Regulated and quasi-regulated March'15 Plan Latam Italy East Europe 2 RoW Iberia Plan update Inclusive of 1.3 bn optional growth capex in renewables 2. Mainly North America and new countries (Asia and Africa) Increasing and rebalancing growth capex 57

59 Strategic update Industrial growth: growth EBITDA ( bn) Key drivers Growth EBITDA Cumulative growth EBITDA % of 2017 growth EBITDA already addressed Spread over WACC >200 bps Average time to EBITDA <2 years Networks 29% 7.2 bn 11% Generation 11% Retail Renewables 49% 6.7 bn March 15 Plan 1. Growth from 1.3 bn of optional capex 2. Cumulative Upgrading growth thanks to shorter time to EBITDA 58

60 Strategic update Industrial growth: operational targets upgrade 1 Additional growth vs March 15 Networks +21 mn 2 nd generation digital meters Retail +2.5 mn customers TWh sold 2 Renewables +2.1 GW additons Conventional generation -0.1 GW additons +3.6 mn end users +30 mn smart meters End users (mn) Smart meters (mn) mn new customers in power & gas free market Free Customer base (mn) GW 3 additions +0.6 GW additions in Latam 0.4GW under construction at 2019 Total 2019 Capacity: 17 GW 5 38% Total renewables Hydro 4 Oil & Gas Renewables 31% 7% 5% Nuclear 22% ~96 GW 18% Total Group capacity Total 2019 Capacity: 66 GW % CCGT Coal 52% Total renewables Hydro 3 Oil & Gas 14% Coal 33% ~83 GW 4 13% 18% 18% 4% Renewables Nuclear CCGT Incremental data refers to period 2. In Italy 3. Including 0.9 GW additional capacity from optional capex 4. Including EGP Hydro operations 5. Net of disposals

61 Strategic update Key pillars: revised targets Operational efficiency Industrial growth Group simplification Active portfolio management Shareholder remuneration 60

62 Strategic update EGP integration: compelling rationale Upgrade medium/long-term growth prospects Fully exploit global growth opportunities: +9.2 GW in >50% of total group growth capex and growth EBITDA 85% of generation growth capex Synergies Mitigating merchant risk within the Group Improved energy management capability Vertical integration with networks: smart grids and micro grids Enhanced retail offering Gaining further flexibility Increased flexibility in asset rotation within the Group Higher optionality with good quality pipeline of small-mid size projects Shorter time to EBITDA < 2 years Other businesses 47% Conventional generation Group growth capex % 17.0 bn 10.7 bn 53% 85% Renewables Generation growth capex Renewables Driving structural change of generation portfolio 61

63 Strategic update Latam restructuring Pure Chilean group Country-based model in Latam Latam investment vehicle Objectives Enersis Chile 60.6% 99.1% 60.0% >50.0% Enersis Americas Simplify corporate structure Align strategic interests Chilectra Endesa Chile Dx Gx Gx Dx EBITDA bn pro-forma figures ARG BRA COL PE Gx Dx Gx Dx EBITDA bn Gx Dx Set a new industrial strategy and management focus 62

64 Strategic update Latam restructuring Efficiencies Opex & SG&A reduction Cash management Tax optimisation Industrial growth Chile 1.4 bn total capex % dedicated to growth + = Americas 3.8 bn total capex % dedicated to growth Dividend policy Chile Base case payout to increase gradually from 50% to 70% Americas 50% payout Yearly savings by 2019 of mn Shorter time to EBITDA increased flexibility & optionality Flexibility on use of free cash flow Proposed dividend policy subject to completion of reorganisation 63

65 Strategic update Key pillars: revised targets Operational efficiency Industrial growth Group simplification Active portfolio management Shareholder remuneration 64

66 Strategic update Active portfolio management Strategic fit Decreasing business risk profile Capital recycling to drive higher returns Optimising economic interests across portfolio Flexibility Crystallising value through disposals Providing additional resources to fund growth Acceleration to support strategic repositioning 65

67 Strategic update Key pillars Operational efficiency Industrial growth Group simplification Active portfolio management Shareholder remuneration 66

68 Strategic update Shareholder remuneration policy confirmed Dividend policy Transition phase Minimum DPS ( /sh) 50% 55% 60% 65% 65% Accelerating returns Short-term certainty Including the impact of EGP integration

69 Investor presentation Strategic Plan Key financials November 18, 2015

70 Key financials Operational efficiency ( bn) Maintenance capex mn savings in 2019 vs Opex 2 ~1 bn savings in 2019 vs % -16% % -7% Cash costs -14% -10% March '15 Plan Additional savings and strong acceleration in trajectory 1. Net of perimeter effect 2. Total fixed costs in nominal terms (net of capitalizations). Adjusted figure net of accruals. Impact from acquisitions is not included 69

71 Key financials EBITDA evolution: retail ( bn) +31% Main business drivers (0.5) 2.1 Free customers Volumes sold >15% in power and gas +20% in power and +30% in gas Cost to serve ~5% reduction 2015 Customer base Efficiency New services Unitary margin 2019 New Services +0.3 bn in B2C and B2B segments 70

72 Key financials EGP integration EBITDA at regime NPV Growth Acceleration of growth with +1.3 bn of optional capex and +0.9 GW installed in mn 0.25 bn Increasing flexibility in active portfolio management bn Increasing synergies with networks, conventional generation and retail 30 mn 0.4 bn Integration Optimising Group financial resources Lowering merchant exposure To be implemented post Integration Net present value >0.8 bn 71

73 Key financials Latam restructuring ( bn) EBITDA evolution Main drivers 3.1 (0.6) Efficiency Opex savings of ~0.3 bn Industrial growth Increased flexibility and optionality Shorter time to EBITDA Free cash flow Flexibility on usage 2015 Scenario & regulatory Energy margin & retail Efficiency Growth

74 Key financials EBITDA evolution ( bn) +15% +3% +12% 15.0 (1.5) (0.2) Scenario & regulatory Active portfolio mgmt Energy margin & retail Efficiency Growth 2017 Scenario & regulatory Efficiency Growth Active portfolio mgmt Of which -0.4 from disposals and +0.2 from acquisitions 2. Of which +0.2 from acquisitions Further acceleration on efficiency and growth 73

75 Key financials EBITDA evolution ( bn) EBITDA by geography 1 EBITDA by business % 21% 21% 23% 46% 43% 38% 15 8% 11% 36% 17 16% 2% 31% 15 11% 11% 28% 17 16% 12% 1% 70% Regulated and quasi-regulated 75% Italy Iberia Latam East Europe Renewables S&H Networks Renewables Generation 2 S&H Retail Regulated and quasi-regulated 1. Including Holding and Services 2. Including retail in Iberia Decreasing business risk profile 74

76 Key financials Group net income evolution ( bn) +45% +13% +29% (0.2) (0.5) (0.4) (0.2) (0.1) (0.2) Group net income 2015 EBITDA Financial expenses D&A Income tax Minorities EGP Integration Group net income 2017 EBITDA Financial expenses D&A Income tax Minorities Group net income

77 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Key financials Financial plan and strategy Gross and net debt ( bn) ~(9.5) Net financial expenses on debt ( bn) -18% , % 4.9% Net debt/ EBITDA 2.4x 2.5x 2.6x 2.1x Net debt Financial receivables Cash Net financial exp. Cost of gross debt 76

78 Key financials Breakdown of gross debt cost evolution Gross debt breakdown Cost of gross debt ~7% ~20% ~19% ~7% ~27% ~20% Hybrid bonds Emerging markets 2 6.3% 6.5% 6.7% 7.9% ~54% ~46% Banks and other Bonds 1 2.5% 2.6% 5.4% 3.9% Average cost of debt 5.1% 4.9% Bonds 1 Banks and other Emerging markets 2 Hybrid bonds Financial strategy more than offsetting higher increasing emerging markets cost 1. It exclude emerging markets and hybrid 2. It includes Latam and EGP perimeters 77

79 Key financials Cash flow generation: cumulative ( bn) 64 (4) - (9) (10) 41 (12) 29 (14.5) 14.5 (12) (3.5) Recurring EBITDA Provisions 1 NWC and other Income taxes paid Financial expenses paid FFO Maintenence FFO after capex 2 maint. Capex Net growth capex 3 FCF Net dividends paid Net FCF Cash-in from disposals 3 Net cash available Acquisitions Active portfolio management and free cash flow funding additional growth 1. Accruals, releases, utilizations of provisions in EBITDA (i.e. personnel related and risks and charges). Inclusive of bad debt provision accruals equal to 2.3 bn 2. Including maintenance capex from acquisitions 3. Net of funds from active portfolio management worth ~2.5 bn 78

80 Investor presentation 1H 2016 consolidated results Annexes

81 1H 2016 consolidated results Market context in the period (change yoy) Electricity demand Average spot power prices ( /MWh) Currencies vs. euro 1 Italy -2.0% Italy Spot price % USD/EUR -% Spain Chile Colombia Brazil Argentina Peru -0.1% -3.1% 3.5% 4.1% 3.7% 9.9% Spain Chile Colombia Brazil Peru % -52% +74% -81% +18% CLP/EUR COP/EUR BRL/EUR ARS/EUR PEN/EUR -39% -10% -20% -20% -7% Russia 0.1% Russia % RUB/EUR -17% 1. Based on the average exchange rate 2. As of July 27,

82 1H 2016 consolidated results Operational highlights Installed capacity (GW) -3% Net production (TWh) -8% Renewables Conventional generation FY H % 34% Load factor 1H H 2016 Electricity distributed (TWh) +1% Number of customers 1 (mn) +5% # of end users (mn) H H Retail customers in Italy and Iberia (free power and gas market ) H H

83 1H 2016 consolidated results Operational highlights Generation Installed capacity (GW) Net production (TWh) -3% -8% (0.6) (10.5) (3.3) (2.0) FY 2015 Nuclear Thermal Hydro Other Renewables 1H H 2015 Nuclear Thermal Hydro Other Renewables 1H

84 1H 2016 consolidated results Operational highlights Distribution Electricity distributed (TWh) End users (mn) +1% +1% (0.4) H 2015 Italy Iberia Latam East Europe 1H H 2015 Latam Rest of World 1H

85 1H 2016 consolidated results From EBITDA to net income ( mn) 1H H H H 2015 yoy reported reported ordinary ordinary yoy EBITDA 8,053 7, % 7,929 7, % D&A 2,843 2,877 2,804 2,877 EBIT 5,210 5, % 5,125 4, % Net financial charges (1,527) (1,277) (1,527) (1,277) Net income from equity investments using equity method EBT 3,735 3, % 3,650 3, % Income tax (1,143) (1,186) (1,150) (1,184) Net income 2,592 2,629 2,500 2,358 Minorities (758) (796) (758) (754) Group net income 1,834 1, % 1,742 1, % 1 84

86 1H 2016 consolidated results Reported EBITDA matrix ( mn) Global Generation & Trading Global Infrastructure & Netw orks Renew able Energies Total 3 Total 3 1H H H H H H H H H H H H 2015 Italy ,778 1, ,329 3,141 Iberia (14) 41 1,856 1,969 Latam (53) (44) 1,625 1,437 Argentina Brazil (16) (16) Chile (37) (20) Colombia (8) Peru East Europe Romania (1) Russia Slovakia Other 1 (5) (4) (4) - - (5) (8) North America Other Countries Other (13) (7) (19) (49) (30) (56) Total 2,208 2,226 3,525 3, ,078 1,437 1,089 (37) 29 8,053 7,961 Retail Services & Other 1. Includes Belgium, Greece, France and Bulgaria 2. Includes South Africa and India 3. Total EBITDA by country excludes contribution from Global Renewable Energies 85

87 1H 2016 consolidated results Ordinary 1 EBITDA matrix ( mn) Global Generation & Trading Global Infrastructure & Netw orks Renew able Energies Total 4 Total 4 1H H H H H H H H H H H H 2015 Italy ,778 1, ,205 3,000 Iberia (14) 41 1,856 1,969 Latam (53) (44) 1,625 1,437 Argentina Brazil (16) (16) Chile (37) (20) Colombia (8) Peru East Europe Romania (1) Russia Slovakia Other 2 (5) (4) (4) - - (5) (8) North America Other Countries Other (13) (7) (19) (49) (30) (56) Total 2,084 2,085 3,525 3, ,437 1,089 (37) 29 7,929 7,688 Retail Services & Other 1. Excludes extraordinary items 1H 2016: +124 mn Hydro Dolomiti capital gain 1H 2015: +141 mn SE Hydropower capital gain and +132 mn 3Sun 2. Includes Belgium, Greece, France and Bulgaria 3. Includes South Africa and India 4. Total EBITDA by country excludes contribution from Global Renewable Energies 86

88 1H 2016 consolidated results EBITDA from Reported to Adjusted: breakdown by geography 1H 2016 Italy Iberia Latam East Europe Global Renewable Energies Other Reported 3,329 1,856 1, (30) 8,053 Extraordinary items Ordinary 3,205 1,856 1, (30) 7,929 One-offs 109 (11) Adjusted 3,205 1,747 1, (49) 7,812 Total 1H 2015 Italy Iberia Latam East Europe Global Renewable Energies Other Reported 3,141 1,969 1, ,078 (56) 7,961 Extraordinary items Ordinary 3,000 1,969 1, (56) 7,688 One-offs (16) Adjusted 3,016 1,731 1, (56) 7,426 Total 87

89 1H 2016 consolidated results EBITDA from Reported to Adjusted: breakdown by business line 1H 2016 Global Generation & Trading Global Infrastructure & Networks Global Renewable Energies Retail Services & Holding Reported 2,216 3, ,437 (45) 8,053 Extraordinary items Ordinary 2,092 3, ,437 (45) 7,929 One-offs Adjusted 2,018 3, ,421 (69) 7,812 Total 1H 2015 Global Generation & Trading Global Infrastructure & Networks Global Renewable Energies Retail Services & Holding Reported 2,232 3,539 1,078 1, ,961 Extraordinary items Ordinary 2,091 3, , ,688 One-offs Adjusted 1,858 3, , ,426 Total 88

90 1H 2016 consolidated results Operational efficiency: opex ( mn) -5% -4% 4,424 (12) 4,412 4,219 (31) 4,188 Personnel 2,334 2,327-4% 2,229 2,230 External costs 2,399 2,394-4% 2,297 2,265 Capitalized costs (309) (309) 1H One-offs 1H 2015 Reported Adjusted (307) (307) 1H One-offs 1H 2016 Adjusted Reported 1. Includes delta provisions 89

91 1H 2016 consolidated results Forward sales Chile Colombia 100% 100% 100% 90% 90% 75% Peru Brazil % 100% 100% 100% 100% 80% Hedged production Unhedged production - Average price ( /MWh) 90

92 1H 2016 consolidated results Capex 1 By activity By business By geography 31% 3.7 bn 47% 1% 3.7 bn 33% 16% 9% 6% 3.7 bn 38% 69% 1% 18% 20% 11% Networks Generation Latam Iberia Maintenance Growth Retail Other Renewables Italy East Europe North America Other 1. Gross of contribution. Includes assets held for sale in Generation and East Europe (includes assets held for sale related to Slovenske Elektrarne for 249 mn) 91

93 1H 2016 consolidated results Capex by business 1 ( mn) +20% Services&Holding Renewables 2 3, , ,742 S&H 2 +6% Renewables +79% Latam -26% Latam Iberia East Europe Italy Iberia +11% East Europe -2% Italy +4% 1H H Gross of contribution. Includes capex related to assets held for sale in Generation and East Europe equal to 249 mn in 1H2016 and 254 mn in 1H Includes upstream gas and other 92

94 1H 2016 consolidated results Gross debt structure Long term debt by currency Long term debt by currency after swap Gross debt interest rate composition 58% 83% 21% 11% 3% 4% 1% 47.6 bn 2% 21% 2% 4% 1% 3% 7% 47.6 bn 79% EUR USD BRL CLP EUR USD BRL Floating Fixed + Hedged COP Other GBP CLP COP Other 93

95 1H 2016 consolidated results Debt structure by instrument ( bn) Debt by instrument Enel Spa EFI Italy Iberia Latam Renewables East Europe & Other Bonds Bank Loans Tax Partnership Other Loans Other short term debt Commercial Paper Gross debt Financial Receivables (0.01) - (1.05) (0.51) (0.93) (0.17) (0.48) (3.15) Tariff Deficit (0.18) (0.18) Other short term financial receivables (1.02) (0.01) (0.70) (0.05) (0.05) (0.09) - (1.92) Cash & Cash Equivalents (1.08) (0.05) (0.22) (0.67) (1.76) (0.44) (1.33) (5.55) Net Debt Third Parties (1.05) Net Debt Intercompany 1.48 (19.85) (0.14) Net Debt Group View (0.76) Total 94

96 1H 2016 consolidated results Debt maturity coverage split by typology ( bn) Available committed credit lines Cash 5.5 1H 2016 Short term 2 Bank Loans and Others Bonds < 2H H After Of which 13.5 bn of long term committed credit lines with maturities beyond June Includes commercial paper 95

97 1H 2016 consolidated results Group total net installed capacity: breakdown by technology and geography MW Hydro 1 Wind Geothermal Solar & Other Nuclear Coal CCGT Oil&Gas ST/OCGT Italy 12, ,478 4,535 2,739 27,760 Iberia 4,763 1, ,318 5,168 5,445 2,417 22,774 Latam 9,985 1, ,316 2,584 19,642 East Europe 1, ,814 4,011 1,215 4,513 14,036 Romania Russia , ,513 8,945 Slovakia 1, , ,820 Other North America 316 2, ,506 Other Countries Total 29,095 6, ,132 16,491 15,511 12,253 87,050 Total 1. Includes 2,667 MW of EGP (1,517 MW in Italy, 43 MW in Iberia, 772 MW in Latam, 19 MW in East Europe, 316 MW in North America) 2. Includes Belgium, Greece and Bulgaria 3. Includes South Africa and India 96

98 1H 2016 consolidated results Group total net production: breakdown by technology and geography GWh Hydro 1 Wind Geothermal Solar & Other Nuclear Coal CCGT Oil&Gas ST/OCGT Italy 8, , ,817 3, ,611 Iberia 5,085 2, ,843 6,580 2,836 3,198 32,648 Latam 16,946 1, ,902 9,054 2,490 32,423 East Europe 1, ,244 10,169 2,352 7,767 28,569 Romania Russia ,341 2,000 7,767 19,108 Slovakia 1, , ,146 Other North America 553 3, ,756 Other Countries Total 32,252 9,526 3, ,087 32,468 17,525 13, ,178 Total 1. Includes 5,085 GWh of EGP (2,968 GWh in Italy, 93 GWh in Iberia, 1,444 GWh in Latam, 27 GWh in East Europe, 553 GWh in North America) 2. Includes Belgium, Greece and Bulgaria 3. Includes South Africa and India 97

99 1H 2016 consolidated results Group total additional capacity: breakdown by technology and geography MW Hydro 1 Wind Geothermal Solar & Other Nuclear Coal CCGT Oil&Gas ST/OCGT Italy Iberia Latam East Europe Romania Russia Slovakia Other North America Other Countries Total Total 1. Hydro EGP 2. Includes Belgium, Greece and Bulgaria 3. Includes South Africa and India 98

100 1H 2016 consolidated results EGP projects in execution: breakdown by technology and geography (MW) MW Wind Hydro Geothermal Solar Biomass Total Italy Iberia Latam ,842 East Europe North America Other Countries ,069 Total 2, , , Includes Belgium, Greece and Bulgaria 2. Includes South Africa and India 99

101 1H 2016 consolidated results EGP projects under construction : breakdown by technology and geography (MW) MW Wind Hydro Geothermal Solar Biomass Total Italy Iberia Latam ,567 East Europe North America Other Countries Total 1, , , Includes Belgium, Greece and Bulgaria 2. Includes South Africa and India 100

102 1H 2016 consolidated results EGP projects ready to build : breakdown by technology and geography (MW) MW Wind Hydro Geothermal Solar Biomass Total Italy Iberia Latam East Europe North America Other Countries Total 1, , Includes Belgium, Greece and Bulgaria 2. Includes South Africa and India 101

103 1H 2016 consolidated results Global Renewable Energies gross pipeline 1 Pipeline by technology Pipeline by geography Pipeline by COD 3% 1% 34% 16% 27% 19.6 GW 62% 15% 19.6 GW 51% 19.6 GW 52% 18% 21% Wind Hydro Solar Geo Latam RoW Europe North America > As of June 30,

104 1H 2016 consolidated results Global Renewable Energies contracts portfolio 1 By geography By credit rating By remaining contract duration 37% 63% BBB 27% 4% 4% 7% 16% 20% 21% AA 45% 89% 7% 4% 5% 5% 18% A 28% Latam North America AA+ AA AA- A+ A A yrs yrs >15 yrs BBB+ BBB BBB- 1. Based on power revenues as of June 30,

105 1H 2016 consolidated results Industrial growth: recently awarded renewable auctions Mexico Peru Enel competitive advantage Technology Solar PV Wind / Solar PV / Hydro First utility scale plants Capacity 1,000 MW 326 MW Global procurement Production 2,250 GWh 1,200 GWh Multiple bids approach Capex <900 mn USD <400 mn USD Low operating risks COD Deep market knowledge Remuneration 15 yrs USD PPA + 20 yrs GCs 20 yrs USD PPA Synergies with existing assets Returns 12-14% equity IRR 13-15% equity IRR Leveraging on its competitive advantages, Enel outbids competition preserving returns 104

106 1H 2016 consolidated results Industrial growth: installation cost evolution 1 Wind unitary capex evolution ($m/mw) Solar unitary capex evolution ($m/mw) Chile 1.9 Chile 1.8 Peru 1.3 Mexico Technological improvement drives increasing cost competitiveness 1. By commercial operation year 105

107 Investor presentation FY 2015 consolidated results Annexes

108 FY 2015 consolidated results Operational highlights Installed capacity (GW) Net production (TWh) -7% -% Renewables 1 Conventional generation FY 2014 FY % 36% Load factor FY 2014 FY 2015 Electricity distributed (TWh) Number of customers 2 (mn) +2% +1% # of end users (mn) FY 2014 FY net of Portugal 2. Retail customers only (gas and free power market) FY 2014 FY

109 FY 2015 consolidated results From EBITDA to net income ( mn) reported yoy ordinary reported 1 ordinary 1 restated restated yoy EBITDA 15,297 15, % 15,040 15, % D&A (7,612) (12,670) (5,825) (6,243) EBIT 7,685 3,087 n.s. 9,215 9, % Net financial charges (2,456) (3,130) (2,456) (3,130) Net income from equity investments using equity method 52 (35) EBT 5,281 (78) n.s. 6,811 6, % Income tax (1,909) 850 (2,280) (2,007) Net income 3, ,531 4,264 Minorities (1,176) (255) (1,644) (1,270) Group net income 2, n.s. 2,887 2, % restated due to the application of IFRS21 108

110 FY 2015 consolidated results EBITDA reported matrix ( mn) Global Generation & Trading Global Infrastructures & Netw orks Renew able Energies FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 Italy 797 1,157 3,933 3, ,336 1, ,098 Iberia 1, ,643 1, (46) (135) 3,111 Latam 1,843 1,702 1,398 1, (74) (32) 3,167 Argentina (51) Brazil (29) (13) 491 Chile (45) (19) 938 Colombia Peru East Europe 1, (4) 6 1,308 Romania (1) Russia Slovakia (1) (2) Other (7) (24) (7) 3 (8) Renew ables ,826 1, ,826 Other (42) (178) (41) (213) Total 4,674 4,605 7,241 7,374 1,826 1,938 1,826 1,915 (270) (75) 15,297 Retail Services & Other Total 109

111 FY 2015 consolidated results Operational efficiency: opex ( mn) +5% -2% 9, ,252 9,085 (496) 9,581 Personnel 4,550 4,618 -% 4,610 3,665 External costs 5,237 9,787 5,283-3% 5,153 9,267 6,594 Capitalized costs FY 2014 reported 1 One-offs FY 2014 adjusted FY 2015 adjusted 1 One-offs FY 2015 reported Opex savings more than offsetting growth and inflation effects 1. Includes delta provisions 110

112 FY 2015 consolidated results Capex 1 By activity By business By geography 43% 2% 12% 7.8 bn 32% 7.8 bn 36% 8% 7.8 bn 43% 24% 57% 2% 28% 13% Maintenance Growth Networks Retail Other Generation Renewable Energy Latam Italy East Europe Iberia Row 1. Gross of contribution. Includes assets held for sale in Generation and East Europe (includes assets held for sale related to Slovenske Elektrarne for 649 mn) 111

113 FY 2015 consolidated results Production mix (TWh) % % 0.6% 8.6% 10.4% Group production mix -% % 26,1% 10.5% 10.1% FY 2014 FY % 14.3% Italy 49.2% 52.5% 9.7% 10.4% 29.0% 30.2% 13.8% 14.0% 7.2% 8.2% % % 23.2% 13.9% 13.1% 14.8% 15.5% FY 2014 FY 2015 Other renewables Hydro Coal Nuclear Oil & Gas CCGT Other countries 22.1% 23.1% 18.5% 18.5% 6.4% 7.5% 24.3% 22.3% FY 2014 FY

114 FY 2015 consolidated results Group total net production: breakdown by technology and geography GWh Large Hydro Hydro EGP Other renewables Nuclear Coal CCGT Oil&Gas ST/OCGT Italy 11,939 5,974 7,110-35,954 7, ,518 Iberia 7, ,309 25,756 26,139 7,495 6,495 77,444 Latam 34,012 3,504 3,345-2,904 18,824 4,523 67,112 East Europe 2,385-1,372 14,081 20,680 5,925 17,269 61,712 Slovakia 2, ,081 1, ,292 Russia ,896 5,925 17,269 42,090 Romania - - 1, ,330 North America , ,368 1 Rest of Europe ,151-1,789 2 Other Countries Total 55,511 10,427 23,335 39,837 85,677 40,542 28, ,010 Total 1. Includes Greece, Belgium and Bulgaria 2. Includes South Africa and India 113

115 FY 2015 consolidated results EGP net production: breakdown by technology and geography GWh Hydro Geothermal Wind Other Total Italy 5,974 5,809 1, ,076 Iberia 75-4, ,383 Latam 3,504-2, ,710 Romania - - 1, ,330 North America , ,368 Rest of Europe Other Countries Total 10,427 6,205 16, , Includes Greece, Belgium and Bulgaria 2. Includes South Africa and India 114

116 Investor presentation Strategic Plan annexes

117 Strategic update annexes Commitments to United Nations Sustainable Development Goals Context Enel s positioning United Nations post-2015 Sustainable Development Goals Access to Electricity: 3 million beneficiaries in Africa, Asia, Latam by 2020 Education: 400,000 beneficiaries by 2020 Social and economic development: 500,000 beneficiaries by 2020 Climate change: carbon neutrality by 2050 CO 2 specific emissions performance and target of reduction (gco 2 /KWh eq) <350 Carbon neutality target 2020 new target

118 Strategic update annexes Assumptions: commodities and prices Commodities March plan Plan update Forward 1 Power prices Brent $/bbl Coal $/ton Italy /MWh Spain /MWh Gas TTF /MWh CO2 /ton Chile $/MWh Colombia COP/KWh Forward value is the IVQ 15 average quote 9 Nov)

119 Strategic update annexes Assumptions: macroeconomics and FX GDP 1 2 Electricity demand (yoy) 3.1% 0.60% -1.20% 2.5% 1.20% 2.1% 1.10% 1.20% Spain Italy Latam 2.40% 2.9% 3.00% 3.00% 3.60% 1.8% 1.40% 0.70% Spain Italy Latam 1.7% 0.90% FX - EUR/USD FX - EUR/BRL FX - EUR/COP ,382 3, , ,456 3, , ,825 2, , March plan Plan update Forward 3 1. Argentina, Brazil, Chile (CIS), Colombia, Peru.GDP weighted by real levels 2. Argentina, Brazil, Chile (CIS), Colombia, Peru. Average growth weighted by Enel s production Forward value is the IVQ 15 average quote 9 Nov) 118

120 Strategic update annexes Italy: targets Capex ( bn) EBITDA ( bn) ~5.8 1 ~5.7 1 ~5.8 1 ~1.6 1 ~0.1 ~0.3 ~1.7 1 ~0.2 ~0.2 ~2.0 1 ~0.2 ~0.1 ~1.2 ~0.7 ~1.4 ~0.7 ~1.4 ~0.8 ~1.1 ~1.3 ~1.7 ~3.8 ~3.5 ~ Networks Conventional generation Retail 1. Including Services 119

121 Strategic update annexes Iberia: targets Capex ( bn) EBITDA ( bn) ~3.1 1 ~3.2 1 ~3.2 1 ~1.0 1 ~1.2 1 ~ Including Services 120

122 Strategic update annexes Latam: targets 1 Capex ( bn) EBITDA ( bn) ~1,9 1 ~0,9 ~1.6 1 ~0.9 ~1.3 1 ~0.7 ~0,9 ~0.7 ~ ~3.1 1 ~1.4 ~3.3 1 ~3.7 1 ~1.4 ~1.5 ~1.8 ~2.0 ~ Including Services Conventional generation Networks 121

123 Strategic update annexes East Europe: targets 1 Capex ( bn) EBITDA ( bn) ~0.4 ~0.4 ~0.4 ~0.2 ~0.2 ~ Net of assets held for sale (Slovenske Elektrarne) 122

124 Strategic update annexes Global Renewable Energies: targets 1 Capex ( bn) EBITDA ( bn) ~2.4 ~2.6 ~2.6 ~1.7 2 ~2.0 ~ Net of disposals 2. Net of 3Sun consolidation effect 123

125 Strategic update annexes Cash flow generation: focus by country ( bn) Italy cumulative Iberia cumulative Operating cash flow Maintanance capex FFO after maintenance capex Growth capex Free cash flow Operating cash flow Maintanance capex FFO after maintenance capex Growth capex Free cash flow 124

126 Strategic update annexes Cash flow generation: focus by country ( bn) Latam cumulative East Europe cumulative Operating cash flow Maintanance capex FFO after maintenance capex Growth capex Free cash flow Operating cash flow Maintanance capex FFO after maintenance capex Growth capex Free cash flow 1. Cash Flow generation from current available assets (not including Acquisition Plan) 125

127 Strategic update annexes Cash flow generation: focus by country ( bn) Global Renewable Energies cumulative ~1.3 optional capex -3.8 Operating cash flow Maintanance capex FFO after maintenance capex Growth capex Free cash flow 126

128 Strategic update annexes Global Renewable Energies: operational efficiency Opex 1 (K /MW) Key levers -20% Strong economies of scale Largest share of new capacity added in technologies with lower unit cost Maintenance contracts optimization Operating excellence as a key competitive advantage Nominal values includes economies of scale from growth associated to 1.3 bn optional capex

129 Strategic update annexes Global Renewable Energies: capex in execution 1 By geography By technology By year 3% 68% 42% 8% 1% 11% 44% 4% 5.6 bn 5.6 bn 5.6 bn 23% 5% 46% 45% Latam Europe Wind Solar Hydro RoW North America Geo Other 1. Relates to projects in executions and tenders awarded. As of March 31, 2016 Over 60% of total growth capex in execution 90% within two years 128

130 Strategic update annexes Global Renewable Energies: targets Planned additional capacity 1 Total capex 1 EBITDA ( bn) North America Rest of World 31% 16% 7.7 GW North America Rest of World 28% 11% 9.7 bn Europe 11% 42% Latin America Europe 14% 47% Latin America 2015E Including contribution from 1.3 bn optional growth capex. Total capex also includes maintenance of 700 mn

131 Strategic update annexes Global Infrastructure & Networks: operational efficiency ( bn) Cash Cost 1 (K /end user) Opex 1 (K /end user) Maintenance capex 1 (K /end user) -19% -18% -21% % Europe Latam % % % % % % In nominal terms March 15 Plan 130

132 Strategic update annexes Global Infrastructure & Networks: industrial growth +1.3 bn growth capex in mn smart meters 1 Strong focus on new technologies in Europe Average time to EBITDA < 2 years Growth capex by geography East Europe 3% Iberia Italy 26% 5.8 bn 49% Latam 22% Quality & Efficiency Growth capex by project Smart Grid 22% 6% 30% Connection & Tx Smart Meters 5.8 bn 41% Growth EBITDA in of 1.9 bn Spread over WACC bps 2 1. Of which 21 mn of 2nd generation smart meters in Italy 2. Regulated WACC 131

133 Strategic update annexes Global Infrastructure & Networks: Italy 2 nd generation smart meters TRADER ESCO AGGREGATORS Key data Main benefits CENTRAL SYSTEM Capex: 1.8 bn Service quality: >10 mn TELECOM GRID (GPRS/3G/LTE) CONCENTRATOR 2 nd generation smart meter: 21mn Operational excellence: >50 mn 169 MHz PLC METER PLC Growth EBITDA: 0.3 bn Network losses reduction: >110 mn The most advanced remote metering management system 132

134 Strategic update annexes Global Generation: operational efficiency (1/2) Key levers Installed capacity (GW) EBITDA per MW ( m/mw) 1 Decommissioning or disposal for low profitability assets Best practices alignment Leverage on Global Procurement -23% +28% Net of capacity closure in Italy Oil&Gas CCGT Coal Hydro Nuke 133

135 Strategic update annexes Global Generation: operational efficiency (2/2) Cash Cost 1 (k /MW) Opex 1 (k /MW) Maintenance Capex (k /MW) -14% % % -7% % -21% March 15 Plan % of lean organization and company structure 1. In nominal terms figure restated for delta perimeter -2% of O&M best practices and alignment to benchmark -11% of personnel cost optimization 134

136 Strategic update annexes Global Trading: general overview Power sales (TWh) Coal purchased (Mt) Gas managed (bcm) 36% 23% % 23% 32% 40 36% 28% 4% 24% 43% 29 23% 10% Italy Iberia East Europe Latam Geographically and technologically diversified portfolio 135

137 Strategic update annexes Global Trading: managerial actions on gross margin 1 Global gas portfolio reshape and restructuring 50-55% Power wholesale trading optimisation Fuel purchase and logistic optimisation Innovative hedging contracts & commercial activity in developing markets 30-35% 5-10% 5-10% Cumulative contribution on gross margin equal to bn 100% Significant support to gross margin growth 136

138 Strategic update annexes Global Trading: global gas portfolio reshape and restructuring Key market references Gas managed /MWh 35 $/bbl % 29 bcm 39% 5 0 Jul/13 Jan/14 Jul/14 BRENT ICE ($/bbl) DX PSV ( /MWh) SX Jan/15 TTF ( /MWh) SX Jul/ Long Term expiring > % Spot Long Term expiring Effective management of price reviews 137

139 Investor presentation Disclaimer This presentation contains certain forward-looking statements that reflect the Company s management s current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forwardlooking 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. 138

140 Investor presentation Contact us Luca Passa Head of Group Investor Relations Elisabetta Ghezzi Investor Relations Holding Phone Web site Donatella Izzo Investor Relations Sustainability and Other Countries Marco Donati Investor Relations Reporting and Corporate Governance Follow us 139