Enel

Earnings Release • Jul 21, 2016

Informazione Regolamentata n. 0116-63-2016		Data/Ora Ricezione 21 Luglio 2016 19:06:01	MTA
Societa'	:	ENEL
Identificativo Informazione Regolamentata	:	77231
Nome utilizzatore	:	ENELN05 - Giannetti
Tipologia	:	IRAG 10
Data/Ora Ricezione	:	21 Luglio 2016 19:06:01
Data/Ora Inizio Diffusione presunta	:	21 Luglio 2016 19:21:02
Oggetto	:	reports with Group's operating data	Enel begins periodic publication of quarterly
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ENEL BEGINS PERIODIC PUBLICATION OF QUARTERLY REPORTS WITH GROUP'S OPERATING DATA

• The Quarterly Bulletin, whose first issue includes second quarter 2016 operating data, will offer a review of the Group's main consolidated data with regard to installed capacity, output, distribution of electricity and sales of electricity and gas during the reference period
• The document, published ahead of the disclosure of Enel's financials for the period, is intended to strengthen Group's communication to the financial community, in line with the most advanced market practice

Rome, July 21st 2016 – Enel S.p.A. ("Enel"), has published its first "Quarterly Bulletin" ("Report"), relating to the second quarter (and the first half) of 2016 as an attachment to this press release. The Report is a quarterly document reviewing the Group's main operational data in the reference period, comprising information on installed capacity, output, distribution of electricity and sales of electricity and gas in the various geographical areas in which the Group operates. The report also summarises the main data on the Enel Group's performance and financial position for the first quarter of 2016, which have already been published. The document also contains a comparison of the operational and financial data indicated above with those for the corresponding period of last year.

The report also has a section fully dedicated to Enel's positioning in the main sustainability indexes. The ratings assigned by the leading rating agencies to the Enel Group's major listed companies are also summarised.

The document, which will be 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 regarding the financial community, in line with best practices in the most advanced markets.

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

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

Operating data

Group net production

		2Q 2016			1H 2016
Group	GWh	% Weight	∆ yoy	GWh	% Weight	∆ yoy
Hydro	17,468	28.1%	1%	32,252	25.2%	-6%
Wind	4,260	6.8%	15%	9,526	7.4%	20%
Other Renewables	1,847	3.0%	5%	3,674	2.9%	4%
Nuclear	8,840	14.2%	0%	19,087	14.9%	-3%
Coal	15,020	24.1%	-25%	32,468	25.3%	-20%
CCGT	8,753	14.1%	-5%	17,525	13.7%	-11%
Oil & Gas	6,027	9.7%	-10%	13,646	10.6%	-3%
Total	62,214	100%	-8%	128,178	100%	-8%
Italy	GWh	% Weight	∆ yoy	GWh	% Weight	∆ yoy
Hydro	5,137	34.4%	-8%	8,571	28.9%	-15%
Wind	330	2.2%	27%	765	2.6%	11%
Other Renewables	1,491	10.0%	0%	2,985	10.1%	1%
Coal	6,272	42.0%	-25%	13,817	46.7%	-22%
CCGT	1,552	10.4%	7%	3,283	11.1%	11%
Oil & Gas	142	0.9%	63%	191	0.6%	34%
Total	14,923	100%	-13%	29,611	100%	-14%
Iberia	GWh	% Weight	∆ yoy	GWh	% Weight	∆ yoy
Hydro	2,700	16.9%	15%	5,085	15.6%	7%
Wind	806	5.0%	-16%	2,015	6.2%	-7%
Other Renewables	42	0.3%	-16%	90	0.3%	-17%
Nuclear	6,382	39.9%	10%	12,843	39.3%	-1%
Coal	2,940	18.4%	-51%	6,580	20.2%	-42%
CCGT	1,532	9.6%	-10%	2,836	8.7%	-15%
Oil & Gas	1,574	9.9%	3%	3,198	9.8%	4%
Total	15,976	100%	-13%	32,648	100%
Latam	GWh	% Weight	∆ yoy	GWh	% Weight	∆ yoy
Hydro	8,882	54.8%	5%	16,946	52.3%	-1%
Wind	871	5.4%	35%	1,747	5.4%	38%
Other Renewables	159	1.0%	178%	284	0.9%	139%
Coal	759	4.7%	7%	1,902	5.9%	54%
CCGT	4,430	27.3%	-6%	9,054	27.9%	-11%
Oil & Gas	1,117	6.9%	-8%	2,490	7.7%	6%
Total	16,218	100%	3%	32,423	100%
East Europe	GWh	% Weight	∆ yoy	GWh	% Weight	∆ yoy
Hydro	484	3.8%	-33%	1,097	3.8%	-39%
Wind	340	2.7%	-17%	864	3.0%	-12%
Other Renewables	48	0.4%	-4%	76	0.3%	-13%
Nuclear	2,457	19.2%	-20%	6,244	21.9%	-8%
Coal	5,048	39.4%	-1%	10,169	35.6%	0%
CCGT	1,239	9.7%	-7%	2,352	8.2%	-29%
Oil & Gas	3,194	24.9%	-17%	7,767	27.2%	-8%
Total	12,811	100%	-12%	28,569	100%
1 Other Countries	GWh	% Weight	∆ yoy	GWh	% Weight	-13% 1% -9% ∆ yoy
Hydro	264	11.6%	-1%	553	11.2%	16%
Wind	1,914	83.7%	34%	4,135	83.9%	44%
Other Renewables Total	107 2,286	4.7% 100%	-4% 27%	239 4,926	4.8% 100%	-1% 37%

	1H 2016
GWh	% Weight	$\Delta$ yoy
32,252	25.2%	$-6%$
9,526	7.4%	20%
3,674	2.9%	4%
19,087	14.9%	$-3%$
32,468	25.3%	$-20%$
17,525	13.7%	$-11%$
13,646	10.6%	-3%
128,178	100%	$-8%$
GWh	% Weight	$\overline{\Delta}$ yoy
8,571	28.9%	$-15%$
765	2.6%	11%
2,985	10.1%	1%
13,817	46.7%	$-22%$
3,283	11.1%	11%
191	0.6%	34%
29,611	100%	$-14%$
GWh	% Weight	$\Delta$ yoy
5,085	15.6%	7%
2,015	6.2%	$-7%$
90	0.3%	$-17%$
12,843	39.3%	$-1%$
6,580	20.2%	$-42%$
2,836	8.7%	$-15%$
3,198	9.8%	4%
32,648	100%	$-13%$
GWh	% Weight	$\Delta$ yoy
16,946	52.3%	$-1%$
1,747	5.4%	38%
284	0.9%	139%
1,902	5.9%	54%
9,054	27.9%	$-11%$
2,490 32,423	7.7% 100%	6% 1%
GWh	% Weight	$\Delta$ yoy
1,097	3.8%	-39%
864	3.0%	$-12%$
76	0.3%	$-13%$
6,244	21.9%	-8%
10,169	35.6%	0%
2,352	8.2%	$-29%$
7,767 28,569	27.2% 100%	$-8%$ $-9%$
GWh	% Weight	$\Delta$ yoy
553	11.2%	16%
4,135 239	83.9% 4.8%	44% -1%

1. Includes USA, Canada, South Africa, India

Operating data

Group installed capacity

		1H 2016
	Italy		Iberia		Latam		East Europe		Other Countries		Total
	MW	∆ yoy	MW	∆ yoy	MW	∆ yoy	MW	∆ yoy	MW	∆ yoy	MW	∆ yoy
Hydro	12,421	15	4,763	(0)	9,985	438	1,609	-	316	-	29,095	452
Wind	728	8	1,616	(125)	1,426	260	741	-	2,262	597	6,773	740
Other Ren.	860	(82)	46	(6)	497	329	134	(0)	259	149	1,796	390
Nuclear	-	-	3,318	-	-	-	1,814	-	-	-	5,132	-
Coal	6,478	-	5,168	(138)	835	(1)	4,011	(212)	-	-	16,491	(351)
CCGT	4,535	(664)	5,445	-	4,316	64	1,215	-	-	-	15,511	(600)
Oil & Gas	2,739	(2,327)	2,417	0	2,584	(58)	4,513	1	-	1	12,253	(2,384)
Total	27,760	(3,050)	22,774	(269)	19,642	1,033	14,036	(211)	2,837	746	87,050	(1,753)

Group additional capacity in 1H 2016

	1H 2016
MW	Italy	Iberia	Latam	East Europe	Other Countries	Total
Hydro	3	-	40	-	-	43
Wind	8	-	112	-	-	120
Other Ren.	15	-	298	-	149	461
Nuclear	-	-	-	-	-	-
Coal	-	-	-	-	-	-
CCGT	-	-	-	-	-	-
Oil & Gas	-	-	-	-	-	-
Total	26	-	450	-	149	625

Global Infrastructure & Network

Electricity distributed (TWh)	1H 2016	1H 2015	∆yoy	End users (mn)	1H 2016	1H 2015
Italy	109.8	110.2	-0.3%	Italy	31.6
Iberia	52.7	51.0	3.5%	Iberia	11.9
Latam	39.7	39.0	1.6%	Latam	15.3
East Europe	7.3	7.2	1.1%	East Europe	2.7
Total	209.5	207.4	1.0%	Total	61.5

Retail

Energy sold (TWh)	1H 2016	1H 2015	∆yoy
Italy	45.9	42.2	8.7%
Iberia	45.7	45.7	0.0%
Latam	33.9	31.8	6.5%
East Europe	7.0	8.0	-11.6%
Total	132.5	127.7	3.8%
Gas sold (bmc)	1H 2016	1H 2015	∆yoy

Gas sold (bmc)	1H 2016	1H 2015	∆yoy
Italy	2.6	2.5	7.1%
Iberia	3.1	2.8	11.8%
Total	5.7	5.2	9.6%

Power customers (mn)	1H 2016	1H 2015	∆yoy
Italy	26.8	27.1	-1.2%
Iberia	11.0	11.1	-1.0%
Latam	15.4	15.0	2.6%
East Europe	2.7	2.7	0.8%
Total	55.9	55.9	-0.1%
Gas customers (mn)	1H 2016	1H 2015	∆yoy

Italy	3.9	3.6	6.7%
Iberia	1.5	1.2	25.0%
Total	5.4	4.8	11.3%

Income statement & balance sheet Dividends ⁵

€ mn	1Q 2016	1Q 2015	∆ yoy
Revenues	17,872	19,970	-11%
Reported EBITDA*	4,017	4,023	0%
Ordinary EBITDA*	3,871	4,023	-4%
Reported EBIT*	2,670	2,625	2%
Ordinary EBIT*	2,524	2,625	-4%
Rep. Group net income*	939	810	16%
Group net ord. Income*	795	810	-2%
EPS (in €)	0.10	0.09	11%
1 FFO	1,539	710	117%
Total assets	158,053	2 169,565	-7%
Assets held for sale*	6,824	2 6,830	0%
Shareholder's equity	52,192	2 53,498	-2%
Liabilities held for sale	5,641	2 5,469	3%
Financial net debt	36,644	2 37,545	-2%
3 FFO/Net debt*	28%	25%	+3 p.p.
3 Net debt*/Ebitda	2.5x	2.5x	-
4 Capex	1,650	1,340	23%
- Growth	1,142	714	60%
- Maintenance	508	626	-19%

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

Valuation data ⁶

	30/06/2016	30/06/2015	∆ yoy
Share Price (€)	3.980	4.064	-2.1%
P/E	12.9	12.6	2.4%
EV/EBITDA	7.5	7.1	4.8%
Dividend Yield	4.5%	3.9%	14.9%

Stock performance YTD (1/01 – 20/07) ⁵

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

2. As of December 2015

3. 2015 data as of December; 2016 data are LTM

4. Includes assets held for sale related to Slovenske Elektrarne

5. 2015 ex-dividends date: 22.06.16; 2014 ex-dividends date: 23.06.15

6. Bloomberg / broker consensus

*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.

Rating⁶

		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	BBB	POS	Baa2	STABLE
Ampla (Brazil)	BB+	NEG	-	-	-	-
Cochòn (Argentina)	-	-	-	-	Caa1	STABLE
Emgesa (Colombia)	BBB	STABLE	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	W D	STABLE	B3	STABLE
Colombia	BBB	NEG	BBB	STABLE	Baa2	STABLE

Focus on Italy: Operating data

Country energy balance¹ Figures: retail

GWh	1H 2016	1H 2015	∆ yoy
Hydro	21,505	23,601	-8.9%
Thermo	83,823	83,808	0.0%
- Biomass	8,865	8,722	1.6%
Geothermal	2,953	2,874	2.7%
Wind	10,138	8,900	13.9%
PV	11,269	12,970	-13.1%
Total net production	129,688	132,153	-1.9%
Import	25,702	25,391	1.2%
Export	3,145	2,450	28.4%
Net import	22,557	22,941	-1.7%
Pumped storage	1,240	944	31.4%
Electricity demand	151,005	154,150	-2.0%

Energy Sold (TWh)	1H 2016	1H 2015	∆ yoy
Regulated Market	22.6	23.9	-5.5%
Free Market	23.3	18.3	27.3%
Total	45.9	42.2	8.7%
Power customers (mn)	1H 2016	1H 2015	∆ yoy
Regulated Market	20.1	21.0	-4.4%
Free Market	6.7	6.1	9.8%

Pool Price (€/MWh) 2

Power supply: breakdown by sources1,3

1. Source: Terna 2. Source: GME

2. Net of own consumption and pumped storage. Renewables includes Biomass. Source TERNA.

Quarterly bulletin 1H 2016

ESG: Enel ranking¹

SIGNIFICANT EVENTS: https://www.enel.com/it-it/investors/agenda/2016

July 28th, 2016: half-year financial report at June 30th, 2016 November 10th, 2016: interim financial report at September 30th, 2016

PRESS RELEASES² :

https://www.enel.com/en-gb/Pages/media/press/index.aspx?curPage=0&source=investors

7/1/16 - EXTENSION OF EXCLUSIVE NEGOTIATIONS FOR THE BUSINESS INTEGRATION OF ENEL OPEN FIBER AND METROWEB

6/9/16 - ENEL'S BOARD OF STATUTORY AUDITORS VERIFIES INDEPENDENCE REQUIREMENTS OF ITS MEMBERS

6/9/16 - ENEL'S BOARD OF DIRECTORS ACKNOWLEDGES EXCLUSIVE RIGHTS TO NEGOTIATE BUSINESS INTEGRATION BETWEEN METROWEB AND ENEL OPEN FIBER

5/26/16 - FINAL RESULTS OF OFFER TO EXCHANGE ENEL FINANCE INTERNATIONAL'S OUTSTANDING BONDS WITH NEWLY ISSUED ONES

5/26/16 - ENEL SHAREHOLDERS' MEETING APPROVES 2015 FINANCIAL STATEMENTS AND APPOINTS NEW BOARD OF STATUTORY AUDITORS

5/9/16 - ENEL GROUP'S NET INCOME UP AND NET FINANCIAL DEBT DOWN IN FIRST QUARTER OF 2016

5/2/16 - ENEL: SLATES OF CANDIDATES FOR RENEWAL OF BOARD OF STATUTORY AUDITORS HAVE BEEN FILED

4/28/16 - ENEL BRINGS FORWARD APPROVAL OF FIRST QUARTER 2016 RESULTS

4/20/16 - ENEL PUBLISHES THE EXPLANATORY REPORT ON THE SOLE ITEM TO BE DISCUSSED IN EXTRAORDINARY SESSION OF SHAREHOLDERS' MEETING

4/15/16 - ENEL PUBLISHES DOCUMENTATION CONCERNING ITEMS TO BE DISCUSSED IN ORDINARY SESSION OF SHAREHOLDERS' MEETING

4/14/16 - ENEL: AMENDED SHAREHOLDERS' MEETING AGENDA

4/8/16 Renewables - ENEL STARTS CONSTRUCTION IN THE UNITED STATES OF ITS LARGEST WIND FARM

3/30/16 Renewables - ENEL GREEN POWER CONFIRMS RENEWABLES LEADERSHIP IN MEXICO FOLLOWING SUCCESSFUL TENDER OUTCOME

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.