Enel

Earnings Release • Feb 22, 2017

Informazione Regolamentata n. 0116-15-2017		Data/Ora Ricezione 22 Febbraio 2017 11:31:43	MTA
Societa'	:	ENEL
Identificativo Informazione Regolamentata	:	85335
Nome utilizzatore	:	ENELN04 - Giannetti
Tipologia	:	IRAG 10
Data/Ora Ricezione	:	22 Febbraio 2017 11:31:43
Data/Ora Inizio Diffusione presunta	:	22 Febbraio 2017 11:46:44
Oggetto	:	year Group operating data report	Enel publishes 2016 fourth quarter and full
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ENEL PUBLISHES 2016 FOURTH QUARTER AND FULL YEAR GROUP OPERATING DATA REPORT

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

Rome, February 22nd, 2017 – Enel S.p.A. ("Enel"), has published its Quarterly Bulletin ("Report"), relating to the fourth quarter and full year 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 8th, 2016 and which introduced a new geographical breakdown of the Group's activities. More specifically, the Group has shifted from a matrix of four geographical areas to one with six areas.

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

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 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's registered office, on the Enel website (www.enel.com, Investors section), and - together with this press release - through the authorised storage mechanism "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

Group GWh % Weight ∆ yoy GWh % Weight ∆ yoy Hydro 13,423 20.1% -9% 60,031 22.9% -9% Wind 4,654 7.0% -3% 18,294 7.0% 13% Other Renewables 2,042 3.1% 12% 7,649 2.9% 7% Nuclear 5,939 8.9% -39% 33,444 12.8% -16% Coal 21,356 32.1% -1% 72,343 27.6% -16% CCGT 11,538 17.3% 11% 40,303 15.4% -1% Oil & Gas 7,678 11.5% 5% 29,749 11.4% 4% Total 66,628 100% -5% 261,812 100% -8% Italy GWh % Weight ∆ yoy GWh % Weight ∆ yoy Hydro 3,522 21.4% 5% 16,052 26.4% -10% Wind 326 2.0% 37% 1,298 2.1% 16% Other Renewables 1,481 9.0% -3% 5,954 9.8% -1% Coal 7,932 48.2% -11% 28,145 46.2% -22% CCGT 3,020 18.4% 54% 8,913 14.6% 25% Oil & Gas 178 1.1% 550% 551 0.9% 40% Total 16,458 100% 3% 60,913 100% -14% Iberia GWh % Weight ∆ yoy GWh % Weight ∆ yoy Hydro 961 4.9% -19% 7,288 10.1% 7% Wind 666 3.4% -41% 3,422 4.7% -7% Other Renewables 30 0.2% -41% 167 0.2% -17% Nuclear 5,939 30.6% -1% 25,921 35.8% -1% Coal 7,834 40.3% 20% 21,336 29.5% -42% CCGT 2,339 12.0% 22% 7,425 10.3% -15% Oil & Gas 1,658 8.5% 8% 6,764 9.4% 4% Total 19,426 100% 6% 72,323 100% Latam GWh % Weight ∆ yoy GWh % Weight ∆ yoy Hydro 8,359 55.2% -9% 32,619 52.5% -1% Wind 700 4.6% 22% 2,451 3.9% 38% Other Renewables 318 2.1% 292% 827 1.3% 139% Coal 796 5.3% -3% 3,653 5.9% 54% CCGT 3,997 26.4% -11% 18,029 29.0% -11% Oil & Gas 985 6.5% -13% 4,586 7.4% 6% Total 15,154 100% -7% 62,165 100% 1 Europe & North Africa GWh % Weight ∆ yoy GWh % Weight ∆ yoy Hydro 7 0.1% -98% 1,235 2.3% -39% Wind 514 4.2% 16% 1,715 3.2% -12% Other Renewables 23 0.2% -36% 147 0.3% -13% Nuclear - 0.0% -100% 7,523 14.0% -8% Coal 4,794 38.7% -8% 19,209 35.8% 0% CCGT 2,182 17.6% 11% 5,936 11.1% -29% Oil & Gas 4,857 39.2% 5% 17,848 33.3% -8% Total 12,376 100% -24% 53,613 100% -9% 2 North & Central America GWh % Weight ∆ yoy GWh % Weight ∆ yoy Hydro 574 19.0% -18% 2,837 23.1% 16% Wind 2,358 78.1% 0% 9,007 73.4% 44% Other Renewables 86 2.9% -31% 424 3.5% -1% Total 3,018 100% -5% 12,268 100% 3 Sub Saharan Africa & Asia GWh % Weight ∆ yoy GWh % Weight ∆ yoy Wind 91 46.3% 88% 401 3.3% 44% Other Renewables 105 53.7% n.m. 129 1.1% -1% Total 196 100% 265% 530 4% 37%		4Q 2016		FY 2016
					-13%
					1%
					37%

	FY 2016
GWh	% Weight	$\overline{\Delta}$ yoy
60,031	22.9%	$-9%$
18,294	7.0%	13%
7,649	2.9%	7%
33,444	12.8%	$-16%$
72,343	27.6%	$-16%$
40,303	15.4%	$-1%$
29,749	11.4%	4%
261,812	100%	$-8%$
GWh	% Weight	$\Delta$ yoy
16,052	26.4%	$-10%$
1,298	2.1%	16%
5,954	9.8%	$-1%$
28,145	46.2%	$-22%$
8,913	14.6%	25%
551	0.9%	40%
60,913	100%	$-14%$
GWh	% Weight
7,288	10.1%	$\Delta$ yoy 7%
3,422	4.7%	$-7%$
167	0.2%	$-17%$
25,921	35.8%	$-1%$
21,336	29.5%	$-42%$
7,425	10.3%	$-15%$
6,764	9.4%	4%
72,323	100%	$-13%$
GWh	% Weight	$\Delta$ yoy
32,619	52.5%	$-1%$
2,451	3.9%	38%
827	1.3%	139%
	5.9%	54%
3,653
18,029	29.0%	$-11%$
4,586	7.4%	6%
62,165	100%
GWh	% Weight	$\Delta$ yoy
1,235	2.3%	$-39%$
1,715	3.2%	$-12%$
147	0.3%	$-13%$
7,523	14.0%	$-8%$
19,209	35.8%	0%
5,936	11.1%	$-29%$
17,848	33.3%	$-8%$
53,613	100%
GWh	% Weight	$\Delta$ yoy
2,837	23.1%	16%
9,007	73.4%	44%
		-9%
424	3.5%	$-1%$
12,268	100%
GWh	% Weight	37% $\Delta$ yoy
401	3.3% 1.1%	1% 44% $-1%$

1. Includes Romania, Russia, Slovakia, Belgium, Greece, Bulgaria. Slovakia is deconsolidated since 29th July 2016.

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

3. Includes South Africa, India.

Operating data

Group installed capacity

Group installed capacity
							FY 2016
		Italy		Iberia		Latam		Europe & North Africa		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	12,423	16	4,764	-	9,590	188	19	(1,590)	630	(234)	-	-	27,425	(1,620)
Wind	728	8	1,618	1	1,092	224	741	-	2,018	(518)	335	163	6,531	(121)
Other Ren.	858	13	14	(32)	504	318	106	(28)	144	31	323	314	1,950	616
Nuclear	-	-	3,318	-	-	-	-	(1,814)	-	-	-	-	3,318	(1,814)
Coal	6,478	-	5,168	(138)	835	-	3,623	(600)	-	-	-	-	16,103	(738)
CCGT	4,535	(664)	5,445	-	4,311	71	809	(406)	-	-	-	-	15,100	(999)
Oil & Gas	2,739	(2,327)	2,417	-	2,583	(59)	4,512	-	-	-	-	-	12,251	(2,386)
Total	27,760	(2,955)	22,744	(168)	18,915	742	9,810	(4,438)	2,792	(720)	659	477	82,679	(7,062)

Group additional capacity in FY 2016

				FY 2016
MW	Italy	Iberia	Latam	Europe & North Africa	North & Central America	Sub-Saharan Africa & Asia	Total
Hydro	8	1	142	-	50	-	200
Wind	8	1	224	-	574	163	970
Other Ren.	16	-	318	-	132	314	779
Nuclear	-	-	-	-	-	-	-
Coal	-	-	-	-	-	-	-
CCGT	-	-	-	-	-	-	-
Oil & Gas	-	-	-	-	-	-	-
Total	32	2	684	-	755	477	1,949

Global Infrastructure & Network

Electricity distributed (TWh)	9M 2016	FY 2016	FY 2015	1 End users (mn)	9M 2016	FY 2016	FY 2015
Italy	167.3	223.5	227.1	Italy	31.6	31.5	31.6
Iberia	82.3	109.1	107.1	Iberia	12	12.0	11.9
Latam	59.1	78.5	78.5	Latam	15.5	15.9	15.2
Europe & North Africa	11.1	14.9	14.6	Europe & North Africa	2.8	2.8	2.7
Total	319.7	426.0	427.4	Total	61.8	62.2	61.5

Retail

Energy sold (TWh)	9M 2016	FY 2016	FY 2015	Power customers (mn)	9M 2016	FY 2016	FY 2015
Italy	70.1	94.1	88.0	Italy	26.7	26.7	26.9
Iberia	70.7	93.5	92.9	Iberia	11	11.0	11.1
Latam	48.1	63.1	63.4	Latam	15.5	15.9	15.2
Europe & North Africa	9.8	12.3	15.8	Europe & North Africa	2.7	2.7	2.7
Total	198.7	263.1	260.1	Total	55.9	56.4	56.0
Gas sold (bmc)	9M 2016	FY 2016	FY 2015	Gas customers (mn)	9M 2016	FY 2016	FY 2015
Italy	3.1	4.6	4.1	Italy	3.9	4.0	3.8
Iberia	4.3	6.0	5.3	Iberia	1.5	1.5	1.5
Total	7.4	10.5	9.4	Total	5.4	5.5	5.2

1. Final End users

Financial data

Income statement & balance sheet Dividends ⁵

€ mn	9M 2016	9M 2015	∆ yoy
Revenues	51,459	55,998	-8%
Reported EBITDA*	12,010	12,161	-1%
Ordinary EBITDA*	11,896	11,888	0%
Reported EBIT*	7,689	6,308	22%
Ordinary EBIT*	7,666	7,640	0%
Rep. Group net income*	2,757	2,089	32%
Group net ord. income*	2,700	2,641	2%
EPS (€)	0.28	0.22	27%
1 FFO	6,766	5,199	30%
Total assets	152,846	2 161,179	-5%
Assets held for sale*	170	2 6,854	-98%
Shareholder's equity	53,427	2 51,751	3%
Liabilities held for sale	95	5,364 2	-98%	115
Financial net debt	36,821	2 37,545	-2%	110
FFO/Net debt*	3 30%	2 25%	+5 p.p.	105
Net debt*/Ebitda	3 2.4x	2 2.5x	-	100 95
4 Capex	5,504	5,080	8%	90
- Growth	3,682	2,036	81%	85
- Maintenance	1,822	3,044	-40%	80 75

	Dividends

	2016		2015
€/share	Amount	∆ yoy	Amount	∆ yoy
Pay-out	60%	+5 p.p.	55%	+10 p.p.
DPS	0.18	13%	0.16	14%

Valuation data⁶

	31/12/2016	31/12/2015	∆ yoy
Share Price (€)	4.188	3.892	7.6%
P/E	13.1	12.4	5.9%
EV/EBITDA	7.4	7.4	0.8%
Dividend Yield	4.3%	4.1%	4.5%

Stock performance (1/01/2016 – 15/02/2017)⁵

1-Jan 11-Jan 21-Jan 31-Jan 10-Feb 20-Feb 1-Mar 11-Mar 21-Mar 31-Mar 10-Apr 20-Apr 30-Apr 10-May 20-May 30-May 9-Jun 19-Jun 29-Jun 9-Jul 19-Jul 29-Jul 8-Aug 18-Aug 28-Aug 7-Sep 17-Sep 27-Sep 7-Oct 17-Oct 27-Oct 6-Nov 16-Nov 26-Nov 6-Dec 16-Dec 26-Dec 5-Jan 15-Jan 25-Jan 4-Feb 14-Feb

*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 November 10th , 2016 (for the third quarter 2016) and 13th November 2015 (for the third 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	-
Enel Americas	BBB	NEG	BBB	STABLE	Baa3	STABLE
Enel 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+	NEG	Baa2	NEG
Spain	BBB+	STABLE	BBB+	STABLE	Baa2	STABLE
Chile	AA-	NEG	A+	NEG	Aa3	STABLE
Brazil	BB	NEG	BB	NEG	Ba2	NEG
Argentina	B-	STABLE	W D	STABLE	B3	STABLE
Colombia	BBB	NEG	BBB	NEG	Baa2	STABLE
Russia	BB+	STABLE	BBB-	STABLE	Ba1	NEG

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 September 2016
4. 1. Includes assets held for sale related to Slovenske Elektrarne
5. 1. 2016 ex-dividend date 23.01.2017 for the interim dividend (0.09 €/sh), next ex-dividend date 24.07.2017
6. 1. Bloomberg / brokers consensus

Rating⁶

Focus on Italy

GWh	FY 2016	FY 2015	∆ yoy
Hydro	42,323	46,451	-8.9%
Thermo	187,461	182,861	2.5%
- Biomass	18,065	17,930	0.8%
Geothermal	5,865	5,824	0.7%
Wind	17,455	14,705	18.7%
PV	22,545	22,587	-0.2%
Total net production	275,649	272,428	1.2%
Import	43,181	50,848	-15.1%
Export	6,155	4,470	37.7%
Net import	37,026	46,378	-20.2%
Pumped storage	2,424	1,909	27.0%
Electricity demand	310,251	316,897	-2.1%
Pool Price (€/MWh)	2
			Delta	2015 2016

Italy energy balance¹ Enel Italian retail business

Energy Sold (TWh)	9M 2016	FY 2016	FY 2015
Regulated Market	34.4	45.8	49.4
Free Market	35.7	48.3	38.7
Total	70.1	94.1	88.0
Power customers (mn)	9M 2016	FY 2016	FY 2015
Regulated Market	19.8	19.6	20.6
Free Market	6.9	7.1	6.4

Pool Price (€/MWh) 2

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

ESG: Enel ranking¹

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

February 14, 2016 - ENEL CLOSES ACQUISITION OF BRAZILIAN DISTRIBUTION COMPANY CELG

February 9, 2016 - ENEL PRESENTS PRELIMINARY CONSOLIDATED RESULTS FOR 2016. ORDINARY EBITDA INCREASES THANKS TO IMPROVED MARGINS IN LATIN AMERICA AND IN RETAIL MARKETS IN ITALY AND SPAIN

January 23, 2016 - 2017 CALENDAR OF CORPORATE EVENTS

January 9, 2016 - ENEL GROUP LAUNCHES ITS FIRST GREEN BOND TOTALLING 1,250 MILLION EUROS ON EUROPEAN MARKET

December 23, 2016 - ENEL CONFIRMED WINNER IN TENDER FOR PRIVATISATION OF BRAZILIAN DISTRIBUTION COMPANY CELG

December 20, 2016 - OPEN FIBER COMPLETES ACQUISITION OF METROWEB

December 15, 2016 - ENEL GROUP AND GE ENERGY FINANCIAL SERVICES TURN U.S. PARTNERSHIP EGPNA REP INTO JOINT VENTURE

November 30, 2016 - ENEL PRESENTS BEST OFFER IN TENDER FOR PRIVATISATION OF BRAZILIAN DISTRIBUTION COMPANY CELG

November 22, 2016 - ENEL GROUP PRESENTS 2017-2019 ENHANCED STRATEGIC PLAN, FOCUSED ON DIGITISATION AND CUSTOMERS

November 21, 2016 - ENEL GROUP AND GE ENERGY FINANCIAL SERVICES SIGN LETTER AGREEMENT TO TURN U.S. PARTNERSHIP EGPNA REP INTO JOINT VENTURE

November 16, 2016 - ENEL: MERGER OF ENDESA AMERICAS AND CHILECTRA AMERICAS INTO ENERSIS AMERICAS TO TAKE EFFECT AS OF DECEMBER 1ST, 2016

November 10, 2016 - ENEL GROUP'S NET INCOME UP 32% IN 9M 2016, INTERIM DIVIDEND POLICY LAUNCHED

October 31, 2016 - MERGER BETWEEN ENDESA AMERICAS AND CHILECTRA AMERICAS INTO ENERSIS AMERICAS NEARING CONCLUSION

October 25, 2016 - ENEL PUBLISHES 2016 THIRD QUARTER AND NINE MONTHS GROUP OPERATING DATA REPORT

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.