Enel

Earnings Release • Oct 25, 2016

Informazione Regolamentata n. 0116-92-2016		Data/Ora Ricezione 25 Ottobre 2016 07:42:34	MTA
Societa'	:	ENEL
Identificativo Informazione Regolamentata	:	80541
Nome utilizzatore	:	ENELN05 - Giannetti
Tipologia	:	IRAG 10
Data/Ora Ricezione	:	25 Ottobre 2016 07:42:34
Data/Ora Inizio Diffusione presunta	:	25 Ottobre 2016 07:57:35
Oggetto	:	months Group operating data report	Enel publishes 2016 third quarter and nine
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ENEL PUBLISHES 2016 THIRD QUARTER AND NINE MONTHS GROUP OPERATING DATA REPORT

• The document, published ahead of the disclosure of Enel's financials for the period, is intended to strengthen the Group's communication to the financial community, in line with the most advanced market practice

Rome, October 25th, 2016 – Enel S.p.A. ("Enel"), has published its Quarterly Bulletin ("Report"), relating to the third quarter and first nine months of 2016 2016.

The Group's operating data included in the Report is presented according to the amendments to the organisational structure that were adopted on April 8 breakdown of the Group's activities. More specifically, geographical areas to one with six areas. ure th, 2016 and which introduced a new geographical the Group has shifted from a matrix of four

The updated structure retains the Europe" Area has been changed to "Europe and North Africa" Central America" and "Sub-Saharan Africa and Asia" have also been created. he areas "Italy", "Iberia" and "Latin America", while Africa". Two new geographical areas "North and while the former "Eastern

The Report, which is published in advance of the approval by the Enel Board of Directors and the disclosure of the performance and financial data contained in Enel's periodic financial reports, is aimed at further strengthening Enel's transparency towards the fin the most advanced markets. Saharan ort, financial community, in line with best practices in

The Report attached to this press release is available to the public at Enel's registered office, on the Enel website (www.enel.com, Investors authorised storage mechanism "NIS , section), and - together with this press release -Storage" (). ancial - through the

All Enel press releases are also available in App at Apple Store and Google Play. in smartphone and tablet versions. You can download the Enel Corporate

1

Quarterly bulletin 9M ²⁰¹⁶ Operating data

Group net production

		3Q 2016			9M 2016
Group	GWh	% Weight	∆ yoy	GWh	% Weight	∆ yoy
Hydro	14,356	21.4%	-15%	46,608	23.9%	-9%
Wind	4,114	6.1%	19%	13,640	7.0%	19%
Other Renewables	1,933	2.9%	8%	5,607	2.9%	6%
Nuclear	8,419	12.6%	-19%	27,506	14.1%	-9%
Coal	18,519	27.6%	-22%	50,987	26.1%	-21%
CCGT
	11,241	16.8%	8%	28,766	14.7%	-5%
Oil & Gas	8,424	12.6%	15%	22,071	11.3%	3%
Total	67,006	100%	-10%	195,184	100%	-9%
Italy	GWh	% Weight	∆ yoy	GWh	% Weight	∆ yoy
Hydro	3,959	26.7%	-11%	12,530	28.2%	-14%
Wind	208	1.4%	10%	973	2.2%	11%
Other Renewables	1,488	10.0%	-1%	4,473	10.1%	0%
Coal	6,396	43.1%	-32%	20,213	45.5%	-25%
CCGT	2,610	17.6%	17%	5,893	13.3%	14%
Oil & Gas	182	1.2%	-19%	373	0.8%	2%
Total	14,843	100%	-18%	44,455	100%	-15%
Iberia	GWh	% Weight	∆ yoy	GWh	% Weight	∆ yoy
Hydro	1,242	6.1%	-7%	6,326	12.0%	4%
Wind	741	3.7%	-8%	2,757	5.2%	-7%
Other Renewables	47	0.2%	-14%	137	0.3%	-16%
Nuclear	7,140	35.3%	4%	19,983	37.8%	1%
Coal	6,921	34.2%	-16%	13,501	25.5%	-31%
CCGT	2,250	11.1%	1%	5,086	9.6%	-9%
Oil & Gas	1,908	9.4%	2%	5,106	9.7%	3%
Total	20,249	100%	-6%	52,897	100%	-10%
Latam	GWh	% Weight	∆ yoy	GWh	% Weight	∆ yoy
Hydro	8,301	51.0%	-17%	24,260	51.6%	-6%
Wind	702	4.3%	32%	1,751	3.7%	38%
Other Renewables	235	1.4%	240%	510	1.1%	172%
Coal	956	5.9%	13%	2,857	6.1%	37%
CCGT	4,979	30.6%	19%	14,033	29.8%	-2%
Oil & Gas	1,110	6.8%	6%	3,601	7.7%	6%
Total	16,283	100%	-2%	47,011	100%	0%
1 Europe & North Africa	GWh	% Weight	∆ yoy	GWh	% Weight	∆ yoy
Hydro	131	1.0%	-53%	1,228	3.0%	-40%
Wind	336	2.7%	-11%	1,201	2.9%	-11%
Other Renewables	49	0.4%	-24%	124	0.3%	-18%
Nuclear
	1,279	10.1%	-64%	7,523	18.2%	-27%
Coal	4,246	33.5%	-20%	14,415	35.0%	-7%
CCGT	1,402	11.1%	-23%	3,754	9.1%	-27%
Oil & Gas	5,224	41.2%	25%	12,991	31.5%	3%
Total	12,668	100%	-19%	41,237	100%	-13%
2 North & Central America	GWh	% Weight	∆ yoy	GWh	% Weight	∆ yoy
Hydro
	723	25.8%	-22%	2,263	24.5%	-18%
Wind	1,978	70.7%	28%	6,650	71.9%	34%
Other Renewables	98	3.5%	5%	338	3.7%	4%
1 Total	2,799	100%	9%	9,250	100%
3
Sub-saharan Africa & Asia	GWh	% Weight	∆ yoy	GWh	% Weight	∆ yoy
Wind	149	90.8%	n.d.	310	92.8%	n.d.
Other Renewables	15	9.2%	259%	24	7.2%	15% 87%
Total	164	100%	3795%	335	100%	2487%

1. Includes Romania, Russia, Slovakia, Belgium, Greece, France, Bulgaria.

2. Includes Mexico, Panama, USA, Canada, Guatemala, Costa Rica.

3. Includes South Africa, India.

Group installed capacity

Group installed capacity
							9M 2016
		Italy		Iberia		Latam	North Africa	Europe &		North & Central America		Sub-saharan Africa & Asia	Total
	M W	∆ yoy	M W	∆ yoy	M W	∆ yoy	M W	∆ yoy	M W	∆ yoy	M W	∆ yoy	M W	∆ yoy
Hydro	12,424	17	4,763	(0)	9,510	108	19	(1,590)	864	-	-	-	27,580	(1,466)
Wind	728	8	1,616	-	980	112	741	-	2,536	(0)	260	88	6,861	208
Other Ren.	860	15	46	-	504	306	106	(28)	125	13	323	314	1,966	619
Nuclear	-	-	3,318	-	-	-	-	(1,814)	-	-	-	-	3,318	(1,814)
Coal	6,478	-	5,168	(138)	835	-	3,623	(600)	-	-	-	-	16,103	(738)
CCGT	4,509	(690)	5,445	-	4,316	76	1,215	-	-	-	-	-	15,485	(614)
Oil & Gas	2,765	(2,301)	2,417	0	2,584	(58)	4,514	2	-	-	-	-	12,280	(2,357)
Total	27,763	(2,952)	22,774	(138)	18,729	543	10,218	(4,030)	3,525	12	584	402	83,592	(6,162)

Group additional capacity in 9M 2016

				9M 2016
MW	Italy	Iberia	Latam	Europe & North Africa	North & Central America	Sub-saharan Africa & Asia	Total
Hydro	6	-	112	-	-	-	118
Wind	8	-	112	-	-	88	208
Other Ren.	15	-	318	-	13	314	659
Nuclear	-	-	-	-	-	-	-
Coal	-	-	-	-	-	-	-
CCGT	-	-	-	-	-	-	-
Oil & Gas	-	-	-	-	-	-	-
Total	29	-	542	-	13	402	985

Global Infrastructure & Network

Electricity distributed (TWh)	9M 2016	9M 2015	∆yoy	End users (mn)	9M 2016	9M 2015	∆yoy
Italy	167.3	171.0	-2.1%	Italy	31.6	31.6	-0.1%
Iberia	82.3	81.5	0.9%	Iberia	12.0	11.9	0.3%
Latam	59.1	58.8	0.4%	Latam	15.5	15.1	2.5%
Europe & North Africa	11.1	11.0	1.0%	Europe & North Africa	2.8	2.7	1.3%
Total	319.7	322.3	-0.8%	Total	61.8	61.4	0.7%

Retail

Energy sold (TWh)	9M 2016	9M 2015	∆yoy	Power customers (mn)	9M 2016	9M 2015	∆yoy
Italy	70.1	65.9	6.4%	Italy	26.7	27.0	-1.2%
Iberia	70.7	69.8	1.2%	Iberia	11.0	11.1	-0.8%
Latam	48.1	47.5	1.3%	Latam	15.5	14.9	3.7%
Europe & North Africa	9.8	11.8	-16.8%	Europe & North Africa	2.7	2.7	0.7%
Total	198.7	195.1	1.9%	Total	55.9	55.8	0.3%
Gas sold (bmc)	9M 2016	9M 2015	∆yoy	Gas customers (mn)	9M 2016	9M 2015	∆yoy
Italy	3.1	2.8	10.0%	Italy	3.9	3.7	5.3%
Iberia	4.3	3.9	11.8%	Iberia	1.5	1.2	25.5%
Total	7.4	6.7	11.1%	Total	5.4	4.9	10.3%

Income statement & balance sheet Dividends ⁵

€ mn	1H 2016	1H 2015	∆ yoy
Revenues	34,150	37,623	-9%
Reported EBITDA*	8,053	7,961	1%
Ordinary EBITDA*	7,929	7,688	3%
Reported EBIT*	5,210	5,084	2%
Ordinary EBIT*	5,125	4,811	7%
Rep. Group net income*	1,834	1,833	0%
Group net ord. Income*	1,742	1,604	9%
EPS (in €)	0.19	0.19	0%
1 FFO	4,150	3,023	37%
Total assets	156,852	161,179	2 -3%
Assets held for sale*	6,835	6,854	2 0%
Shareholder's equity	52,651	51,751	2 2%
Liabilities held for sale	5,625	5,364	2 5%
Financial net debt	38,138	37,545	2 2%
FFO/Net debt*	3 28%	25%	2 +3 p.p.
Net debt*/Ebitda	3 2.5x	2.5x	2 -
4 Capex	3,714	3,092	20%
- Growth	2,558	1,746	47%
- Maintenance	1,156	1,346	-14%

	2015		2014
€/share	Amount	∆ yoy	Amount	∆ yoy
Pay-out	55%	-	45%	-
DPS	0.16	14%	0.14	8%

Valuation data ⁶

	30/09/2016	30/09/2015	∆ yoy
Share Price (€)	3.968	3.988	-0.5%
P/E	12.7	12.3	3.4%
EV/EBITDA	7.5	7.2	3.9%
Dividend Yield	4.5%	4.0%	13.1%

Stock performance YTD (1/01 – 21/10) ⁵

1. FFO: funds from operations after ∆ WC and provisions

2. As of 31st December 2015

3. 1. FFO and EBITDA are LTM, net debt as of 30th June 2016
4. 1. Includes assets held for sale related to Slovenske Elektrarne
5. 1. 2015 ex-dividends date: 22.06.16; 2014 ex-dividends date: 23.06.15

6. Bloomberg / broker consensus

Rating⁶

*Alternative performance indicators not envisaged in the IFRS-EU accounting standards are intended to facilitate the assessment of the Group's performance and financial position. Please refer to the press releases dated May 9, 2016 (for the first quarter 2016) and 8 May 2015 (for the first quarter 2015) for the definition of these indicators.

		S&P	Fitch			Moody's
	Rating	Outlook	Rating	Outlook	Rating	Outlook
Enel	BBB	STABLE	BBB+	STABLE	Baa2	STABLE
Endesa	BBB	STABLE	BBB+	STABLE	W R	-
Enersis Americas	BBB	NEG	BBB	STABLE	Baa3	STABLE
Enersis Chile	BBB+	STABLE	-	-	-	-
Ampla (Brazil)	BB	NEG	-	-	-	-
Cochòn (Argentina)	-	-	-	-	B3	STABLE
Emgesa (Colombia)	BBB	NEG	BBB	STABLE	-	-
Enel Russia	-	-	BB+	STABLE	Ba3	NEG
Italy	BBB-u	STABLE	BBB+	STABLE	Baa2	STABLE
Spain	BBB+	STABLE	BBB+	STABLE	Baa2	STABLE
Chile	AA-	STABLE	A+	STABLE	Aa3	STABLE
Brazil	BB	NEG	BB	NEG	Ba2	NEG
Argentina	B-	STABLE	B	STABLE	B3	STABLE
Colombia	BBB	NEG	BBB	NEG	Baa2	STABLE
Russia	BB+	STABLE	BBB-	NEG	Ba1	NEG

Focus on Italy: Operating data

Country energy balance¹ Retail – Enel figures

GWh	9M 2016	9M 2015	∆ yoy
Hydro	33,746	35,996	-6.3%
Thermo	130,301	133,177	-2.2%
- Biomass	13,412	13,201	1.6%
Geothermal	4,409	4,318	2.1%
Wind	13,132	11,598	13.2%
PV	19,022	21,145	-10.0%
Total net production	200,610	206,234	-2.7%
Import	36,227	36,579	-1.0%
Export	4,701	3,677	27.8%
Net import	31,526	32,902	-4.2%
Pumped storage	1,655	1,306	26.7%
Electricity demand	230,481	237,830	-3.1%

Energy Sold (TWh)	9M 2016	9M 2015	∆ yoy
Regulated Market	34.4	37.3	-7.6%
Free Market	35.7	28.7	24.5%
Total	70.1	65.9	6.4%
Power customers (mn)	9M 2016	9M 2015	∆ yoy
Regulated Market Free Market	19.8 6.9	20.8 6.2	-4.5% 9.9%

Pool Price (€/MWh) 2

Power supply: breakdown by sources1,3

• 1. Source: Terna
• 1. Source: GME
• 1. Net of own consumption and pumped storage. Renewables includes Biomass. Source TERNA.

ESG: Enel ranking¹

SIGNIFICANT EVENTS: https://www.enel.com/en/investors/a201608-investor-agenda-2016-index.html

November 10th, 2016: interim financial report at September 30th, 2016 November 22th, 2016: Capital Markets Day

PRESS RELEASES ²: https://www.enel.com/en/media/press-releases.economico.html

October 17, 2016 - ENEL STARTS CONSTRUCTION OF NEW 300 MW WIND PROJECT IN THE UNITED STATES

October 10, 2016 - ENEL SIGNS AGREEMENT FOR THE ACQUISITION OF METROWEB

September 29, 2016 - MERGER OF ENDESA AMERICAS AND CHILECTRA AMERICAS INTO ENERSIS AMERICAS APPROVED BY SHAREHOLDERS OF THE THREE ENEL SUBSIDIARIES

September 27, 2016 - ENEL STARTS CONSTRUCTION OF NEW 172 MW WIND FARM CLUSTER IN BRAZIL

September 16, 2016 - ENEL SIGNS TAX EQUITY AGREEMENT FOR 400 MW CIMARRON BEND WIND PROJECT IN THE USA

September 13, 2016 - ENEL'S SUBSIDIARY ENERSIS AMERICAS LAUNCHES PUBLIC TENDER OFFER FOR ENDESA AMERICAS FREE FLOAT

September 10, 2016 - ENEL WILL PRESENT UPDATED STRATEGIC PLAN ON NOVEMBER 22nd, 2016

September 01, 2016 - PRICE SET FOR PUBLIC TENDER OFFER THAT ENEL SUBSIDIARY ENERSIS AMERICAS WILL LAUNCH FOR ENDESA AMERICAS FREE FLOAT

August 11, 2016 - ENEL RECRUITS 375 YOUNG PEOPLE AT E-DISTRIBUZIONE IN ITALY

August 06, 2016 - ENEL GROUP LAUNCHES FINAL PHASE OF CORPORATE RESTRUCTURING IN LATIN AMERICA

July 28, 2016 - ENEL CLOSES DISPOSAL TO EPH OF 50% OF STAKE IN SLOVENSKÉ ELEKTRÁRNE

July 28, 2016 - ENEL ACCELERATES ON BROADBAND WITH METROWEB ACQUISITION

July 28, 2016 - ENEL 1H 2016 ORDINARY EBITDA UP 3.1% AND NET ORDINARY INCOME UP 8.6%, DRIVEN BY POSITIVE ITALY AND LATAM PERFORMANCE

Disclaimer

This document 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.