Enel — Investor Presentation 2016

Nov 22, 2016

Strategic Plan 2017-19

November 22, 2016

Agenda

Opening remarks	Francesco Starace
2017-19 Strategic Plan Key Pillars	Francesco Starace
2017-19 Strategic Plan Financials	Alberto De Paoli
Global Infrastructure & Networks	Livio Gallo
Global Renewable Energies	Francesco Venturini
Global Thermal Generation	Enrico Viale
Global Trading and Upstream gas	Claudio Machetti
Country Italy	Carlo Tamburi
Country Iberia	Jose Damian Bogas Galvez
Region Latin America	Luca D'Agnese
Closing remarks	Francesco Starace

Enel today: global and diversified operator¹

1. As of 2016E 2

2. Consolidated capacity including 25 GW of large hydro

3. Presence with operating assets

Enel today: global and diversified operator¹

Enel transformation: how are we changing

1. Excludes large hydro

2. Includes 0.7 €bn of capex related to deconsolidated renewables assets

Enel transformation: delivery on group simplification

Continuous simplification to enable management focus

(ad interim)

Enel transformation: updated organizational structure

Enel transformation: rebranding

Capital Markets Day Delivery on strategic plan

Delivery on strategic pillars so far

2

3

4

5

Progress on all strategic pillars ahead of plan

Delivery on business¹ 2014-16

1. EBITDA breakdown excludes -0.2 €bn from holding and services

2. After regulatory revision in Italy in 2016 for -300 €mn

3. Includes only Italy and Iberia 4. Includes only power and free gas customers 5. Includes nuclear in Iberia

A sustainable strategy

United Nations Sustainable Development Goals (SDGs) Enel commitments to the global SDGs

Capital Markets Day 2017-19 strategic plan Key pillars

Energy sector trend

The changing energy environment

• 1. IEA ETP 2016
• 1. BNEF central values for Wind onshore and PV
• 1. United Nations

Strategic pillars revisited

Digitalization

2017-19 digitalization capex (€bn) Key levers for digitalization

Efficiency through full digitalization of back office processes and systems

Enrich products and services

Deepen customer relationship and information processing

Enhance infrastructure performance

Driving efficiency and best in class service

Digitalization

Positioning Enel for the new digital world

Connectivity Stronger interaction between producers and customers

Creating a scalable future-proof platform

Cloud

Efficiency

Operational efficiency

Digitalization enables acceleration on operational efficiency

Industrial growth: 2017-19 capex plan

Rebalancing capex between networks and renewables

Industrial growth: networks

Networks benefitting from full digitalization effort

Industrial growth: renewables¹

Global leader in developing, building and operating renewable assets

• 1. Excludes large hydro
• 1. 2016 includes not consolidated capacity
• 1. Excludes capital gains

Industrial growth: renewables, Build, Sell and Operate model (BSO)

Decreasing risk profile and pipeline monetization

1. Excludes large hydro

2. Includes BSO additions for 3.2 GW

Customer focus

From long energy to long customers over the medium term

Customer focus

EBITDA retail (€bn)	6.0	Key drivers	Key figures
+20%	5.0	Growth of retail customer base worldwide	+16.5 mn power customers +0.4 mn gas customers
2.5	4.0 3.0 3.0	Higher focus on corporate customers in Latam	+50% increase in volumes -11% reduction in unit margin
1.91	2.11 2.0 1.0	Digitalization in customer relationship	Cost to serve -26% Decreasing churn rate to around 12%
2016	0.0 2019	Increasing value per customers	15% take up rate of new services in 2019 on over 60 mn end-users
Commodity business	Additional services

Customers as a new dimension to our strategy

Customer focus: high potential for additional value creation

New global business line to leverage on over 60 million end-users

Industrial growth: operational targets by business

1. Includes only power and free gas customers

2. Free market + PPAs

3. Includes nuclear in Iberia

Group simplification

Enel Green Power integration	restructuring: 1st Latam phase	restructuring: 2nd phase Latam
Operational synergies through large hydro integration Integrated energy management Optimization at country level	First step of restructuring completed Merger of Americas entities Efficiency plan well on track	Further simplification at country level 55% reduction in the number of companies spread over our countries of presence, currently totaling 67

Ongoing simplification to improve alignment, focus and efficiency

Active portfolio management

Continuous program: 8% of asset rotation Share buy back option introduced

Shareholder remuneration

Confidence on strategy delivery and revised plan allows improved shareholder return

Capital Markets Day 2017-19 strategic plan Key financials

Macro scenario: revised assumptions for commodities and prices

Capital Markets Day

More conservative macro scenario assumptions

EBITDA evolution

2017-19 cumulated EBITDA evolution (€bn)

Managerial actions offsetting weaker scenario

Capital Markets Day EBITDA evolution 15 €bn 90% 10% Networks, Renewables, Retail Thermal generation 17 €bn 75% 25% Regulated / quasi-regulated 17 €bn 60% Regulated quasi-regulated 75% Regulated quasi-regulated 46% 10% 16% 28% 75% Regulated quasi-regulated 2016 EBITDA 2019 EBITDA Networks Renewables Thermal generation Retail

90% from networks, renewables and retail 75% regulated and quasi regulated

Enel transformation and 2019 targets

Continuous improvement in cash generation and profitability

Digitalization

2017-19 cumulative benefits¹

Focus on assets, customers and people development

1. In real terms.

Operational efficiency

Accelerating on operational efficiency through digitalization

Operational efficiency: focus on opex

Opex evolution¹ Opex by business³

Digitalization will accelerate opex reduction

• 1. Total fixed costs in nominal terms (net of capitalizations). Impact from acquisitions is not included.
• 1. Of which CPI +0.7 €bn and forex -0.1 €bn.
• 1. In nominal terms. Adjusted for delta perimeter 4. Excludes nuclear in Iberia

Industrial growth. focus on growth EBITDA

Increased contribution from networks and retail

Industrial growth: focus on capex in execution

60% of growth capex already addressed

Industrial growth: focus on existing portfolio in renewables¹

Merchant EBITDA Regulated EBITDA

Sound and stable cash generation

1. Excludes large hydro

2. Includes annualized EBITDA contribution of COD 2016 projects

Industrial growth: renewables, Build Sell & Operate model (BSO)¹

Additional lever to accelerate value creation based on our solid performance track record

1. Includes large hydro. Excludes non-organic growth for 0.9 GW

Capital Markets Day

Customer focus

Larger customer base and greater efficiency driving EBITDA increase

1. Includes only Italy and Iberia

EBITDA evolution

Ordinary EBITDA (€bn)

2016-19 ordinary EBITDA evolution (€bn)

Organic initiatives driving growth

EBITDA evolution

2016-19 EBITDA evolution by business line and country (€bn)

Summary by business line

Networks		Retail		Renewables		Thermal generation
EBITDA CAGR1	+4.7%	EBITDA CAGR1	+7.2%	EBITDA CAGR1	+3.3%	EBITDA CAGR1	+2%
35.00 30.00 25.00 20.00 22.8 15.00 10.00 5.0 0 -	10.6	18.00 16.00 14.00 12.00 10.00 8.0 0 8.6 6.0 0 4.0 0 2.0 0 -	20.00 18.00 16.00 14.00 12.00 10.00 8.0 0 6.0 0 1.1 4.0 0 2.0 0 -	13.3	6.2	8.0 0 7.0 0 6.0 0 5.0 0 4.0 0 4.1 3.0 0 2.0 0 1.0 0 -	2.6
2017-19 EBITDA	2017-19 capex	2017-19 EBITDA	2017-19 capex	2017-19 EBITDA	2017-19 capex	2017-19 EBITDA	2017-19 capex
Capex plan		Capex plan		Capex plan		Capex plan
51% 20.9 €bn 20.9 €bn 5%		20.9 €bn 30%		20.9 €bn 10%
300-400	bps spread over WACC	100-150 bps spread over WACC			150 bps spread over WACC	250-300 bps spread over WACC

Key financials: Group net income evolution

Group net ordinary income (€bn) 2016-19 group net ordinary income evolution (€bn)

Financial strategy

Bond refinancing for ~12.4 €bn including green bonds program

Subsidize financing for ~1.2 €bn

Increasing financial flexibility optimizing mix of bond, loans and commercial paper

Capital structure optimization in higher growth countries

Further liability and other managerial actions

Additional reduction of financial expenses on debt for 0.3 €bn by 2019

Financial plan and strategy

Gross and net debt (€bn) Net financial expenses on debt (€bn)

2017-19 cumulated cash flow (€bn)

Stronger organic cash flow generation versus the previous plan

1. Accruals, releases, utilizations of provisions in EBITDA (i.e. personnel related and risks and charges). Inclusive of bad debt provision accruals equal to 1.8 €bn

2. Includes maintenance capex from acquisitions 3. Growth capex net of ~0.5 €bn financed by disposals 4. Net of ~0.5 €bn invested in growth capex

Group targets

	2016	2017	2018	2019	CAGR (%) 2016-19
Ordinary EBITDA (€bn)	15.0	15.5	16.2	17.2	~+5%
Net ordinary income (€bn)	3.2	3.6	4.1	4.7	~+14%
Minimum dividend per share (€)	0.18	0.21	-	-	~+22%
Pay-out ratio	55%	65%	70%	70%	+15 p.p.
FFO/Net Debt	25%	26%	27%	30%	~+5 p.p.

Global Infrastructure and Networks

Positioning and key figures

2016

Financials (€bn)	2016
EBITDA	7.0
Opex	3.1
Maintenance capex	1.7
Growth capex	1.3
Total capex	3.0

Regulatory scenario: Europe

	Italy	5.6%
2017 WACC real pre-tax	Iberia	6.5%1
	Romania	7.7%
Next regulatory cycle	Italy	2024
	Iberia	2020
	Romania	2019

Regulatory scenario: Latam

	Argentina	12.5%	Chile	10%
2017 WACC real pre-tax	Brazil Ampla	11.4%	Colombia	13.7%1
	Brazil Coelce	12.3%	Peru	12%
	Argentina	2017	Chile	2017
Next regulatory cycle	Brazil Ampla	2018	Colombia	2017
	Brazil Coelce	2019	Peru	2018
Argentina Brazil (Ampla) Colombia under review	Improved scenarios vs old plan		RAB equal growing at	to 8 €bn over 20% up to 2019

Strong improvement expected in the future regulatory framework

Infrastructure digitalization

					Italy	Iberia	Latam	Romania	Degree of digitalization
Technologies(AS-IS)	Italy	Iberia	Latam	Romania		0.4	1.1	0.2	Basic
Smart meter	100%	75%	Pilots	5%
Automated primary substations	100%	100%	95%	95%					Intermediate
Customers/Remote control	260	960	1.400	370	1.7	0.1
Work force management	100%	30%	40%	10%
SIM M2M1	650k	200k	60k	65k	0.3				Advanced
									Total capex
					2.0 €bn	0.5 €bn	1.1 €bn	0.2 €bn	2017-19 ~3.8 €bn
						% of delivery in the plan

Significant investment in digitalization in the long term

The industrial rational of network digitalization

RES Integration: Power requested to HV operator Italy Quality of service Improvement: Best case Italy

Digitalization enables sustained performance improvement ^{80 48} 128 44 0 10 20 30 00:00 04:00 08:00 12:00 16:00 20:00 24:00 -48% 29 15 Year 2010 Year 2016 SAIDI¹ -66% €/end users -40% GW 30 GW distributed generation 650 k connections to prosumers SAIDI¹ €/end users Smart metering Network automatization Work force Management Process optimization Tech convergence 2001 2005 2010 2015

Capital Markets Day Efficiency

Efficiency – quality of services

• Chile / Colombia
• Brasil (Coelce) Argentina / Brasil (Ampla)
• Romania / Peru

Italy / Iberia

Industrial growth 2017-19

Industrial growth: focus on smart meter roll out

Enel Open Fiber plan

First cities under coverage	Roll-out plan	Milestones
Milan Padova Venezia Turin Bologna	3 Metroweb cities close to completion (Milan, Bologna and Turin) Works already started in other 10 cities	20 cities open to commercialization by end 2017
Genova Firenze Perugia Bari Bari	Perugia to be completed within 1H-17 (>30% homes connected by 2016) 250 cities covered by 2022 (~9,5mn homes)	Agreement with OLOs for more than 1.5 mn customers On going discussion for further 40 cities
Napoli Cagliari Palermo Catania Metroweb cities	Participation to the first 2 tenders for C and D areas (9.0 mn homes and 2.7 €bn public funds)	~3,0 €bn capex in 2017-21 period ~300 €mn EBITDA at 2021

Ambitious plan for reversing Italian Digital Divide

Acquisition and merger of Metroweb into Enel Open Fiber

Corporate structure Rationale

Accelerated fiber deployment

Leverage on Metroweb industrial know-how

Coverage of all largest cities One stop platform form telco operators

Lower risk profile

Accelerating Enel Open Fiber business plan

Areas of interest	Customer base (mn)	Key drivers
Brasil	Advanced Stage ~2	Leverage current Enel positioning and technical skills
USA		Partnerships to decrease execution risk
Iberia	Deep Dive ~23	Review consolidation trend in fragmented countries
Other OECD countries	Early Development ~5	Extracting value from poor performance and distressed companies

M&A opportunities subject to higher value creation versus organic growth

Financial targets

EBITDA and total capex (€bn)

Global Renewable Energies

Positioning and key figures

Key figures	2016	Old perimeter	Large hydro
Capacity1 (GW)	35.7	10.9	24.8
Production (GWh)	92.4	37.4	55.0

Key financials (€bn)	2016	Old perimeter	Large hydro
EBITDA	4.2	2.0	2.2
Opex	1.4	0.8	0.6
Maintenance capex	0.4	0.2	0.2
Growth capex1	2.8	2.7

1. Old perimeter capacity and growth capex not including USA projects managed through BSO model (Build Sell and Operate)

The outlook for renewables

Investments	Decoupling between installations and investments
Solar	Solar costs down 90% since 2009 despite market oversupply
Wind	Performance improvement coupled with repowering opportunity
Storage	Cost of lithium-ion cells have plunged from \$1,000/kWh in 2007 to \$300/kWh now
Private sector	Commercial, financial and risk management skills remain key factors to win in a fast changing market
Innovation	Pervasive and unstoppable. Leading the change is key to support marginality

Equipment value maximization

Wind turbine cost by delivery date & LCOE¹ evolution

Wind LCOE (\$/MWh) Average wind turbine cost (\$m/MW)

Solar equipment cost² by delivery date & LCOE¹ evolution

Solar LCOE (\$/MWh) Average solar equipment cost (\$m/MW)

Effective procurement strategy leveraging on Enel volumes and auctions' success

1. Normalised LCOE based on 2014 levels

2. Includes PV module, inverter, tracker, BOP, related service costs

Managing complexity

Above market equity return to shareholders

1. Indicative cost repartition of a sample project

Engineering and technological leadership

Best in class in reducing costs and increasing our competitive advantage

Operational efficiency: key performance indicators¹

Lost production factor

Digitalization and innovative solutions to achieve performance improvement and efficiency

1. O&M Cash Costs/MW at forex 2016 excluding taxes, insurance, contribution and not-recurring, Historical values refer to 2009-11 years, except solar which refer to 2013-14

Asset value maximization: in execution capacity returns

	Brazil South Africa		Mexico	Peru	USA
Technology	Wind / PV Wind		Solar PV	Wind / PV / Hydro	Wind
Capacity (MW)	1,300	800	1,000	326	1,000
Production (GWh)	3,800	3,000	2,250	1,200	4,100
Capex (USD bn)	<2	<1.1	<0.9	<0.4	<1.4
COD	2017-18	2017-18	2018	2018	2016-17
PPA duration	20	20	15	20	15-20
PPA currency1	BRL	ZAR	USD	USD	USD
Equity IRR	12-14% USD	11-13% EUR	12-14% USD	13-15% USD	10-12% USD

Leveraging on its competitive advantages, Enel outbids competition preserving returns

1. Mexico remuneration also includes Green Certificates (20 years); USA remuneration also includes NOLs (5 years) and PTCs (15 years)

Industrial growth: 2017-19 capacity additions

Leadership position supported by very strong track record

1. Excludes non-organic growth for 0.9 GW

1. Includes hydro, geothermal and biomass projects. 2013-15 and 2017-19 values are averages

Capital Markets Day

Engineering and Construction

Construction capacity¹ 2013-19 (GW)

Record built in one single year reinforces proof of leading internal capabilities

Average projects size 2013-19 (MW)

Industrial growth: focus on Build Sell and Operate model

Track record: disposals 2014-16	Enel positioning	BSO rationale
~2.3 €bn cash in	Strong and solid pipeline	Accelerating pipeline valorization
~1.4 GW of asset	On time and on budget projects delivery	Valorization of BD E&C and O&M capabilities
Average EV/MW of ~2 €mn	High level of project return	Maintain operational management of the plants
~0.3 €bn capital gain	Worldwide market reliability	Self-financed growth in strategic markets

A solid base to reduce risks and enhance returns

Industrial growth: 2017-19 capacity additions and growth capex

Financial targets

EBITDA and total capex (€bn)

Global Thermal Generation

Positioning and key figures

technology1 2016 net production by	geography1 2016 net production by	Key figures	2016
		Installed capacity (GW)	44
24% 24%	28% 21%	Net production (TWh)	142
142 TWh	142 TWh	Financials (€bn)
	24%	EBITDA	1.2
		Cash cost	2.4
Coal CCGT Oil & Gas	Italy Iberia Latam Europe	Opex	1.8
		Maintenance capex	0.6
		Growth capex	0.2
		Total capex	0.8
52%	27%

Positioning – highlights by region

Countries	Key drivers	Strategy
Italy	Flat demand	Enhancing plant flexibility
Iberia	Capacity market expected in Italy	Evaluating asset rotation opportunities
Russia	Strong competitiveness	Decommissioning plans
	Demand growth with different rates
Latam	Thermal gap impacted by renewables increase	Securing profitability through asset enhancement and long-term PPA
	Potential for additional gas capacity

Different role for thermal plants across geographies with room for further growth

Digital transformation: project status

Reference Model

Benefits

~11GW to be digitalized, 30% of whole thermal fleet at 2019

Efficiency

Continuous driving efficiency

1. In nominal terms, excludes nuclear

2. Net marginal assets and non recurrent items

Capacity strategy

Ongoing installed capacity optimization

1. Excludes nuclear

2. Net of italian marginal assets effects

Futur-e

www.future-e.it

Two riqualified plants: Porto Marghera and Assemini

5 Calls for projects processes in 2016 and further 3 in 2017

Two sale process in advanced stage

Internal requalification for logistics or other energy opportunities

Unique requalification program worldwide

Constant best practices adoption towards fleet performances excellence

1. 2016 average value Italy and Spain mainland

Environmental performance

New challenges @2020

Environmental footprint improvement as a driver for the industrial strategy

Financial targets

EBITDA¹ and capex² (€bn)

Investments in coal environmental improvements especially in Italy, Iberia and Chile, sustained by internal profitability

Decommissioning program in Italy impacting non recurrent spending throughout the Business Plan

Margins in Latam strongly sustained by improved regulation and investments in growth in Argentina

Investments in batteries leading an increase in margins

Value creation through efficiency and cash flow generation

• 1. Excludes 191 mn of Slovenske Elektrarne in 2016, excludes nuclear in Spain
• 1. Excludes 511 mn of Slovenske Elektrarne in 2016, excludes nuclear in Spain
• 1. Includes BD and environmental activities

Global Trading

Positioning and 2016 key figures

Price review impact (€bn)

Delivery on gas contract renegotiation

0.6 1.0 0.7 1.0 1.3 2016-19 old 2016-19 new Already negotiated To be negotiated

Improved renegotiation targets and reduced execution risk

Portfolio evolution (bcm, %)

Legacy To be contracted/spot US LNG + Tap 1

Increasing flexibility over the plan

US LNG gas portfolio

Starting from 2017 Enel will receive loads of US LNG, up to ~ 4.3 bcm in 2020

Group Energy management

Integration and optimal management of market risk as "core mission" of Global Trading Business Line

Portfolio integration, leverage on central Middle Office, transfer of best practices to optimize Risk/Return profile optimization

Recent organizational structure giving rise to efficiency

"Integrated management" of generation portfolio with retail operations at country level

Energy management integration with Enel Green Power

Improved in Iberian Gas Portfolio risk management

Upgrade of processes, skills and tools in Latam

Integration and best practice transfer in Energy Management

Capturing benefits from natural hedging along the value chain

Capital Markets Day

Group energy management

Group Energy management – profit at risk 2017

Relevant benefits from integrated risk management

• 1. Due to integrated management in Italy
• 1. Excludes other possible benefits of netting of the EGP extra-Italy perimeter
• 1. Includes retail Italy

Forward sales Italy and Spain

Italy 2017

1. Average hedged price. Wholesale price for Italy, Retail price for Spain.

2. Average on clean spark spread and clean dark spread.

3. Includes only mainland production.

Forward sales Latam

Peru

Colombia

Brazil

Financial targets

Gross Margin (€bn)

Italy

Positioning and key figures

Regulatory topics

Networks	Retail	Generation
1Q 2016	Starting January 2017	1H17 auctions / Jan-18 delivery
New regulatory period for electricity distribution in Italy approved for 2016-2024	Transitory regime "simil-tutela": new scheme to promote customers switching from regulated to free market	Capacity market: on-going consultation on the final scheme to be approved by European Union
Remuneration criteria in 4Q16	July 2018	4Q16 new regulation
2G smart meters: remuneration criteria in line with expectations	Market opening: mechanism for the opening of the market still to be defined	Ancillary services reform: first phase of ancillary services market reform with participation of renewables and other sources

Retail: Italian power market

Enel market share of around 50% on total number of free customers

Source: 2016 Enel estimate based on figures from AEEGSI, Terna

Retail: Italian gas market

Growing Enel market share of around 18% on number of customers

Retail: Enel positioning and track record

Leadership position and very strong track record

Retail: power market liberalization

Transitory period

January 2017 to July 2018

Regulated customers free to switch to free market

Free tariff plan product with a 1 year regulated price

Stable market share expected

Full liberalization

From July 2018

Regulated market customer base spread among traders

Mechanism for the opening of the market still to be defined

Additional value creation

50% share¹ on free customers 32% share¹ on free volumes

Additional opportunity from full market liberalization

Retail: Enel business evolution

Sustainable EBITDA evolution thanks to higher number of customers and volumes

• 1. 2016 equal to 100 (based on €/MWh)
• 1. Including gas business

Supply and demand balance

From long energy to long customers

106

Digitalization: operations and customer data

Internal processes	Customer data	Main targets at 2019
Accomplished results	Accomplished results
Bad debt management Digital training 100% digitalized Dunning processes	Campaign automation Forecasting based automation Basic speech analytics	-50% process lead time
Milestones by 2018	Milestones by 2018	85% of claims and written requests digitally
Real time request management towards robotization	Data insight improvement	managed
		50% digital billing
Back office - Integrated CRMT BPR end-to-end with DSO	Learning edge technologies: Artificial intelligence and BOT1

Digitalization to improve efficiency and customer profiling

1. Software application that runs automated high-frequency tasks

Digitalization: customers engagement and new services

Digitizalization to improve quality, customize interaction and introduce new services and products

Operational efficiency

New services addressing all customer needs

Increasing on current offering, developing value in new services

Financial targets

More than 60% contribution to Group cash generation

EBITDA and capex (€bn) 2017-19 Cash flow generation (€bn)

Iberia

Positioning and key figures¹

113

Total Capex 1.2

1. Including EGPE fully consolidated in 2016

2. Renewables: large hydro + EGPE

Regulatory scenario

Social tariff

Current financing considered discriminatory according to Supreme Court rules. 2014-16 contributions to be reimbursed. Wide consensus on social tariff amendment. A proposal including vulnerability criteria already sent to authorities New financing scheme to be defined for 2017 onwards

Renewables

Parameters for the 2nd regulatory semi-period to be defined

Next challenge: designing a technology neutral auction (1,000 MW before year end + 2,000 MW in 2017)

Other topics

New SCVP supply margin approved, in line with previous one Domestic coal: ~ 120 €mn of positive net impact in 2016E from 2012-14 settlements.

Government formation

Pending regulatory topics to be addressed

Regulatory framework stability and financial balanced electricity sector

Retail: Spanish power market description¹

Customers (mn) Energy sold (TWh)

Leadership position in the spanish liberalized market both on customer base and energy sold

Retail: Spanish market description¹ :Gas

First non incumbent player in Spain

Retail: customer base and unitary margin evolution

Gas market Power market^{1 2}

1. Volumes include Spain, Portugal and other international sales. Market share is referred to liberalized demand in Spain

2. Volumes include Spain, Portugal and other international sales (excluding gas consumption in thermal power plants and diversions). Market share is referred to Spain (excluding gas consumption in thermal power plants and diversions)

3. Includes electricity, gas and VAS business line

EBITDA evolution³ (€bn)

1. Including Corporate and Structure costs

Digitalization: new services

• Monitoring&Assesment Equip. (power)
• Equip. (gas) Energy efficiency
• Maintenance RW

Financial targets

EBITDA and capex (€bn) 1

2017-19 Cash flow generation (€bn)

Strong cash flow generation will support future growth

Latin America

Positioning and key figures¹

Key figures	2016
Installed capacity (GW)	19
2 RAB (€bn)	8.4
Distributed energy (TWh)	80
End users (mn)	15.6

Key financials (€bn)	2016
EBITDA	3.6
Opex	1.5
Maintenance capex	0.8
Growth capex	2.2

1. 2016 expected

2. Expected 2 €bn in Argentina by 2017

Positioning and key figures¹

2016 Net production by technology

2016 Net production by country

Chile

• Colombia
• Peru

2016 End users by country

2016 Energy sold by country

Latam restructuring

A more lean, agile and simplify structure

Latam restructuring: efficiencies¹

€mn	20162	2019 OLD	2019 NEW	NEW vs OLD
OPEX	115	279	296	+6%
SG&A	24	47	69	+47%
Cash Pooling	4	14	14	-
Tax	45	45	45	-
Total	188	385	424	10%

Improving efficiency 2019 target

• 1. Not including renewables
• 1. Exchange rate €/USD 2016: 1.11

Regulatory scenario

	Chile	Peru	Argentina	Brazil	Colombia
2016 WACC real pre tax	10.0%	12.0%	12.5%. Future WACC pending to be defined	Ampla 11.4% Coelce 12.3%	13.7%1 . Future WACC pending to be defined
Regulatory cycle	4 years	4 years	5 years	5 years Ampla 4 years Coelce	5 years
Next regulatory cycle	2017	2018	2017	2018 Ampla: (under discussion) 2019 Coelce	2017
RAB 2016	1.8 € bn	0.9 € bn	To be defined before December 2016	2.0 € bn	1.7 € bn
	Stable regulatory framework			Regulatory review	ongoing

Argentina Brazil (Ampla) Temporary tariff based on historical opex and capex from February 2016 3rd cycle until 2019 (WACC 11.4%) Bad debt recognition updated every 5 years Recognized losses: based on Aneel model Recognized RAB remuneration: Expected RAB 2017 ~ 2 €bn, WACC 12.5% Recognized Opex at 2016 level Depreciation: 2.7% yearly 4 th cycle starting from 2018 (WACC 12.3%) Recognition of bad debt updated yearly Recognized losses: new target from 2017 + 0.40 €bn + 0.14 €bn RAB calculation: revenue cap model updated with investments New opex as a % of new assets and historical recognized opex WACC: Pending to be defined RAB calculation: price cap model RAB updated every 5 years Opex connected to quality indicators WACC: 13.7% Colombia - 0.05 €bn + 0.5 €bn Current regulation New proposed framework 2017-19 EBITDA¹ impact Total 1. Cumulative 127

Capital Markets Day

Regulatory scenario: focus on Brazil, Argentina and Colombia

Regulatory scenario: capex and RAB evolution

EBITDA and capex: focus on networks (€bn)

Retail: positioning & market liberalization

2016 Total free market sales (TWh) Enel 2016 Free energy sold (TWh)

High potential from further market liberalization: increase in EBITDA reaching ~ 260 €mn in 2019

Industrial growth 2017-2019

Growth capex concentrated in renewables and networks

Main industrial KPIs

Financial targets

EBITDA and capex (€bn) 2017-19 Cash flow generation (€bn)

Growth and efficiencies driving a strong EBITDA and solid cash flow generation

Capital Markets Day 2017-19 strategic plan Closing remarks

Closing remarks

The strategy has delivered so far solid results and a sustainable performance

We are moving to the next level with the addition to our key pillars of digitalization and customer focus dimensions

Our vision and strategy is shared by the whole management team

It will allow us to deliver long term shared value for all our stakeholders

With this strategic plan we are increasing our financial targets and dividend policy

ESG strategic pillars

Engaging the local communities

Related SDGs			Industrial actions	Related targets/commitments
			Access to affordable, sustainable and modern energy	3 mn people, mainly in Africa, Asia and Latin America by 2020
			Employment and sustained, inclusive and sustainable economic growth	20201 1.5 mn people by
			High-quality, inclusive and fair education	0.4 mn people by 2020

Engaging the people we work with

Related SDGs		Industrial actions	Related targets/commitments
		Appraise performance of all employees having worked for at least 3 months in the Group	2020: 100% of eligible employees involved 2020: 99% of TP1 appraised 2020: 94% of TP1 interviewed (feedback)
		Survey corporate climate with a focus on safety	2020: 100% of eligible employees involved 2020: 84% of target population participating
		Global implementation of the diversity and inclusion policy	Recruiting should ensure equal gender splitting of the candidates accessing selection (c. 50% by 2020)
		Ongoing improvement of supply chain safety standards through checking on-site	120 planned Extra Checking on Site (ECoS) by 2020
		Promote a 'safe travels' culture	2020: 100% of countries of presence covered

Aiming at operating efficiency and innovation

Related	SDGs		Industrial actions	Related targets/commitments
			Large scale infrastructure innovation: storage, electric vehicles, grid digitization and smart meters	+18 mn smart meters rolled out by 2019
			Open fiber: ultrabroadband deployment in Italy	250 Italian municipalities by 2019 9.5 mn homes
			Foster innovation through global partnerships and 'high potential' startups	Selection of 40 new innovative start-ups by 20201
			Promote actions in line with UN 'Making cities resilient 'campaign	400 cities by 20201

Decarbonizing the energy mix

Related SDGs	Industrial actions	Related targets/commitments
	Development of renewable capacity	+~8 GW of additional renewable capacity by 20191
	Reduction of thermal capacity	-19 GW by 2019
	Specific CO emissions reduction 2	< 350 gCO2 /KWheq by 2020 (-25% base year 2007)
	Environmental retrofitting of selected plants	~500 €mn of investment by 2020

Mitigation of other environmental impacts

Related SDGs	Industrial actions	Related targets/commitments
	Reduction of SO specific emissions 2	-30% by 2020 (vs 2010)
	Reduction of NO specific emissions x	-30% by 2020 (vs 2010)
	Reduction of particulates specific emissions	-70% by 2020 (vs 2010)
	Reduction of water specific consumption	-30% by 2020 (vs 2010)
	Reduction of waste produced	-20% by 2020 (vs 2015)

Digitalization and related risks: Cyber Security framework

Related SDGs

Assumptions: Commodities, prices, macroeconomics and FX

Scenario	2016		2017		2018		2019
	New Plan	Old Plan	New Plan	Old Plan	New Plan	Old Plan	New Plan	Old Plan
Brent \$/bbl	45	63	48	66	52	70	55	74
Coal \$/ton	56	60	50	64	52	68	53	71
Gas TTF €/MWh	13	21	14	21	15	22	16	22
CO2 €/ton	5	9	7	11	9	13	10	16
Italy €/MWh	39	50	41	52	43	53	45	54
Spain €/MWh	34	49	43	52	46	55	50	58
Chile \$/MWh	57	79	60	44	37	44	30	36
Colombia CLP/MWh	89	48	51	46	51	46	49	46
Italy GDP (%)	0.7	1.1	0.9	1.2	1.0	1.1	1.0	1.0
Italy electricity demand (% Change YoY)	(1.5)	0.7	0.8	0.9	0.7	0.9	0.7	0.8
Spain GDP (%)	2.6	2.5	2.1	2.1	1.9	1.9	1.8	1.8
Spain electricity demand (% Change YoY)	0.8	1.8	1.2	1.7	1.2	1.5	1.2	1.5
Latam GDP1 (%)	(1.6)	1.2	1.1	2.3	2.1	3.3	2.5	3.4
Latam electricity demand2 (% Change YoY)	3.2	2.9	3.2	3.6	3.4	4.0	3.6	3.9
EUR/USD	1.1	1.1	1.1	1.1	1.1	1.2	1.1	1.2
EUR/BRL	3.9	4.2	4.1	4.4	4.2	4.5	4.3	4.7
EUR/COP	3,360	3,375	3,268	3,456	3,535	3,575	3,678	3,582
EUR/CLP	747	740	734	759	718	787	704	809

1. Argentina, Brazil, Chile (CIS), Colombia, Peru. Average growth weighted by Enel's production

EBITDA targets by Country and Global Business Line (€bn)

	2016	2017	2018	2019
Italy	6.6	6.8	7.1	7.5
Global Thermal Generation	0.1	(0.1)	(0.1)	0.1
Global I&N	3.6	3.5	3.6	3.8
Global Renewables Energies	1.1	1.2	1.4	1.3
Retail	1.8	2.0	2.1	2.1
Service & Other	0.1	0.1	0.1	0.1
Iberia	3.5	3.4	3.6	3.8
Global Thermal Generation	0.7	0.8	0.7	0.8
Global I&N	1.9	1.9	2.0	2.0
Global Renewables Energies	0.4	0.3	0.3	0.4
Retail	0.6	0.5	0.6	0.6
Service & Other	0.0	(0.1)	-	(0.1)
Latam	3.6	4.2	4.7	5.1
Global Thermal Generation	0.5	0.5	0.6	0.7
Global I&N	1.3	1.6	1.8	2.1
Global Renewables Energies	1.7	1.9	2.1	2.2
Retail	0.1	0.2	0.2	0.3
Service & Other	(0.1)	-	-	(0.1)
Europe & Noth Africa	0.6	0.4	0.3	0.3
North & Central America	0.8	0.6	0.5	0.4
Sub-Saharan Africa & Asia	0.0	0.1	0.1	0.1
Other	(0.1)	-	-	-
Total	15.0	15.5	16.2	17.2

EBITDA targets new vs old perimeter (€bn)

						Global Renewables Energies
		2016		2017			2018				2019
	EGP1	Large Hydro	Global Renewable Energies	EGP1	Large Hydro	Global Renewable Energies	EGP1	Large Hydro	Global Renewable Energies	EGP1	Large Hydro	Global Renewable Energies
Italy	0.6	0.5	1.1	0.5	0.7	1.2	0.7	0.8	1.4	0.7	0.7	1.3
Iberia	0.2	0.2	0.4	0.2	0.1	0.3	0.2	0.2	0.3	0.2	0.2	0.4
Latam	0.3	1.5	1.7	0.4	1.5	1.9	0.6	1.5	2.1	0.6	1.6	2.2
Europe & Noth Africa	0.1	-	0.1	0.1	-	0.1	0.1	-	0.1	0.1	-	0.1
North & Central America	0.8	-	0.8	0.6	-	0.6	0.5	-	0.5	0.4	-	0.4
Sub-Saharan Africa & Asia	0.0	-	0.0	0.1	-	0.1	0.1	-	0.1	0.1	-	0.1
Other	-	-	-	-	-	-	(0.0)	-	(0.0)	(0.1)	0.1	-
Total	2.0	2.2	4.2	1.9	2.3	4.2	2.0	2.4	4.5	2.1	2.5	4.6

						Global Thermal Generation
		2016 2017					2018			2019
	Global Thermal Generation	Large Hydro	Global Generation2	Global Thermal Generation	Large Hydro	Global Generation2	Global Thermal Generation	Large Hydro	Global Generation2	Global Thermal Generation	Large Hydro	Global Generation2
Italy	0.1	0.5	0.6	(0.1)	0.7	0.6	(0.1)	0.8	0.7	0.1	0.7	0.8
Iberia	0.7	0.2	0.9	0.8	0.1	0.9	0.7	0.2	0.9	0.8	0.2	1.0
Latam	0.5	1.5	2.0	0.5	1.5	2.0	0.6	1.5	2.1	0.7	1.6	2.3
Europe & Noth Africa	0.3	-	0.3	0.1	-	0.1	-	-	-	-	-	-
North & Central America	-	-	-	-	-	-	-	-	-	-	-	-
Sub-Saharan Africa & Asia	-	-	-	-	-	-	-	-	-	-	-	-
Other	-	-	-	-	-	-	-	-	-	-	0.1	0.1
Total	1.5	2.2	3.7	1.3	2.3	3.6	1.2	2.4	3.6	1.6	2.5	4.1

1. Renewables old organizational structure

2. Global Generation old organizational structure

Capex plan 2016-19 (€bn)

		2016		2017		2018	2019
	Growth	Maintenance	Growth	Maintenance	Growth	Maintenance	Growth	Maintenance
Italy	0.6	1.3	0.8	1.2	1.1	1.2	0.9	1.2
Global Thermal Generation	0.0	0.1	0.0	0.1	0.0	0.1	0.0	0.1
Global I&N	0.4	0.9	0.6	0.9	0.9	0.8	0.7	0.8
Global Renewables Energies	0.2	0.2	0.1	0.2	0.1	0.2	0.1	0.2
Retail	0.0	0.1	0.1	0.1	0.1	0.1	0.0	0.1
Service & Other	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Iberia	0.6	0.6	0.6	0.7	0.9	0.7	0.8	0.7
Global Thermal Generation	0.1	0.3	0.1	0.3	0.1	0.3	0.2	0.3
Global I&N	0.4	0.3	0.4	0.3	0.4	0.2	0.3	0.2
Global Renewables Energies	0.0	0.1	-	0.1	0.3	0.1	0.2	0.1
Retail	0.0	0.0	0.1	0.0	0.1	0.0	0.1	0.0
Latam	2.2	0.8	2.3	0.7	1.2	0.8	1.3	0.7
Global Thermal Generation	0.1	0.3	0.2	0.2	0.1	0.2	0.0	0.2
Global I&N	0.5	0.4	0.6	0.5	0.7	0.5	0.7	0.5
Global Renewables Energies	1.6	0.1	1.4	0.1	0.4	0.1	0.5	0.1
Retail	-	-	0.1	-	0.1	-	0.1	-
Service & Other	0.0	0.0	-	-	-	0.0	-	-
Europe & Noth Africa	0.3	0.2	0.2	0.1	0.2	0.1	0.2	0.1
North & Central America	1.5	0.1	0.3	0.0	0.2	0.0	0.0	0.0
Sub-Saharan Africa & Asia	0.3	0.0	0.4	0.0	0.4	0.0	0.7	0.0
Other	-	-	0.0	0.0	0.0	0.1	0.0	0.1
Total	5.5	3.0	4.5	2.9	4.0	2.8	4.0	2.8
Total Capex		8.5		7.4		6.8		6.8

Annexes 9M 2016 results

Financial highlights (€mn)

	9M 2016	9M 2015	∆ yoy	Like-for-like
Revenues	51,459	55,998	-8%
Reported EBITDA	12,010	12,161	-1%
EBITDA1 Ordinary	11,896	11,888	+0%	+4% (5)
Reported EBIT	7,689	6,308	+22%
Ordinary EBIT	7,666	7,640	+0%
Reported Group net income	2,757	2,089	+32%
Group net ordinary income	2,700	2,641	+2%	+10% (6)
Capex2	5,504	5,080	+9%
Net debt3	36,821	37,545 (4)	-2%
FFO	6,766	5,199	+30%

• 1. Excludes extraordinary items 9M 2016: +124 €mn Hydro Dolomiti capital gain , -18 €mn depreciation Curibamba (Peru); +171 €mn capital gain Quintero (Chile), -163 €mn depreciation El Puelo (Chile). 9M 2015: +141 €mn SE Hydropower capital gain and +132 €mn 3Sun
• 1. Includes capex related to assets held for sale related to Slovenské Elektrárne for 283 €mn and Upstream gas for 5 €mn in 9M 2016 and 401 €mn in 9M 2015
• 1. FY 2015: net of assets held for sale (841 €mn mainly for Slovenské Elektrárne). 9M 2016: net of assets held for sale (4 €mn)
• 1. As of December 31, 2015 5. Excludes +823 €mn one-offs in 2015 and +399 €mn in 2016 6. Excludes +441 €mn one-offs in 2015 and +274 €mn in 2016

Ordinary EBITDA evolution (€mn)

• 1. Includes: +176 €mn CO2 swap transaction in Iberia generation, +48 €mn in distrubution in Argentina, -24 €mn bad weather extra costs in distribution In Italy; +23 €mn Ecotax Almaraz, +550 €mn release of provision in Slovenske Electrarne and +50 €mn other
• 1. Includes delta perimeter for 46 €mn due to Slovenske Electrarne deconsolidation

^3. Includes: Gas price review in Italy +311 €mn, +78 €mn Ecotax in Iberia generation, +28 €mn provision release and +19 €mn capital gain on Compostilla RE in Iberia, -37 €mn other

Group adjusted EBITDA by business (€mn)

1. Of which 1,351 €mn EGP old perimeter

Group adjusted EBITDA by geography (€mn)

1. Of which EGP old perimeter: 571 €mn Italy, 181 €mn Iberia, 96 €mn Latam, 99 €mn Europe & North Afr., 435 €mn North Am. & Central Am., -7 €mn Africa Subsah..

2. Of which EGP old perimeter: 470 €mn Italy, 157 €mn Iberia, 189 €mn Latam, 95 €mn Europe & North Afr., 470 €mn North Am. & Central Am., 7 €mn Africa Subsah..

Ordinary¹EBITDA matrix (€mn)

		Global Thermal Generation & Trading		Global Infrastructures & Networks		Global Renewable Energies		Retail	Services	& Other	Total	Total
	9M 2016	9M 2015	9M 2016	9M 2015	9M 2016	9M 2015	9M 2016	9M 2015	9M 2016	9M 2015	9M 2016	9M 2016
Italy	400	135	2,670	2,726	797	1,047	1,373	971	81	114	5,321	4,993
Iberia	668	730	1,393	1,362	308	347	592	477	9	62	2,970	2,978
Latam	393	224	1,042	1,035	1,263	1,182	-	-	(76)	(53)	2,622	2,388
Argentina	61	48	123	97	19	27	-	-	-	-	203	172
Brazil	55	35	292	300	144	113	-	-	(25)	(24)	466	424
Chile	179	2	186	187	568	509	-	-	(16)	1	917	699
Colombia	30	32	296	310	421	424	-	-	-	-	747	766
Peru	68	107	145	141	105	110	-	-	-	-	318	358
Other2	-	-	-	-	6	(1)	-	-	(35)	(30)	(29)	(31)
Europe & North Africa	309	913	173	200	95	98	31	17	1	2	609	1,230
Romania	4	-	173	200	55	60	33	19	1	2	266	281
Russia	126	119	-	-	-	-	-	-	-	-	126	119
Slovakia	191	790	-	-	-	-	-	(1)	-	-	191	789
Other3	(12)	4	-	-	40	38	(2)	(1)	-	-	26	41
North & Central America4	-	-	-	-	470	435	-	-	-	-	470	435
Sub-Saharan Africa & Asia5	-	-	-	-	7	(7)	-	-	-	-	7	(7)
Other	(26)	(12)	-	-	(37)	(36)	-	-	(40)	(81)	(103)	(129)
Total	1,744	1,990	5,278	5,323	2,903	3,066	1,996	1,465	(25)	44	11,896	11,888

1. Excludes extraordinary items 9M 2016: +124 €mn Hydro Dolomiti capital gain , -18 €mn depreciation Curibamba (Peru); +171 €mn capital gain Quintero (Chile), -163 €mn depreciation El Puelo (Chile). 9M 2015: +141 €mn SE Hydropower capital gain and +132 €mn 3Sun

2. Includes Uruguay and other

3. Includes Belgium, Greece, France, Bulgaria

4. Includes Mexico, USA, Panama, Canada, Guatemala, Costa Rica 5. Includes South Africa, India

152

Ordinary EBITDA matrix (€mn): new vs old perimeter

		Global Thermal Generation & Trading			Global Renewable Energies
		9M2016		9M 2015		9M 2016		9M 2015
	New perimeter	Old perimeter	New perimeter	Old perimeter	New perimeter	Old perimeter	New perimeter	Old perimeter
Italy	400	727	135	611	797	470	1,047	571
Iberia	668	819	730	896	308	157	347	181
Latin America	393	1,467	224	1,310	1,263	189	1,182	96
Argentina	61	80	48	75	19	0	27	0
Brazil	55	136	35	112	144	63	113	36
Chile	179	624	2	448	568	123	509	63
Colombia	30	453	32	457	421	(2)	424	(1)
Peru	68	174	107	219	105	(1)	110	(2)
Other1	-	-	-	-	6	6	(1)	(1)
Europe & North Africa	309	309	913	913	95	95	98	98
Romania	4	4	-	-	55	55	60	60
Russia	126	126	119	119	-	-	-	-
Slovakia	191	191	790	790	-	-	-	-
Other2	(12)	(12)	4	4	40	40	38	38
North & Central America3	-	-	-	-	470	470	435	435
Sub-Saharan Africa & Asia4	-	-	-	-	7	7	(7)	(7)
Other	(26)	(26)	(12)	(12)	(37)	(37)	(36)	(36)
Total	1,744	3,296	1,990	3,718	2,903	1,351	3,066	1,338

1. Includes Uruguay and other

2. Includes Belgium, Greece, France, Bulgaria

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

4. Includes South Africa, India

Gross debt ¹structure

Debt structure by instrument (€bn)

Debt by instrument	Enel Spa	EFI	Central Others	Italy	Iberia	Latam	North & Central America	Europe & North Africa	Sub-Saharan Africa & Asia	Total
Bonds	13.34	17.54	0.30	-	0.10	3.64	-	0.14	-	35.06
Bank Loans	0.05	-	0.67	3.95	0.71	1.92	0.42	0.32	0.20	8.24
Tax Partnership	-	-	-	-	-	-	-	-	-	-
Other Loans	-	-	-	0.12	0.53	0.21	1.10	-	0.17	2.13
Other short term debt	0.89	-	-	0.12	0.17	0.09	-	-	-	1.27
Commercial Paper	-	1.09	-	-	1.21	-	-	-	-	2.30
Gross debt	14.28	18.63	0.97	4.19	2.72	5.86	1.52	0.46	0.37	49.00
Financial Receivables	(0.01)	-	(0.49)	(1.40)	(0.53)	(0.89)	-	-	-	(3.32)
Tariff Deficit	-	-	-	-	(0.27)	-	-	-	-	(0.27)
Other short term financial receivables	(1.39)	(0.01)	-	(0.61)	(0.06)	(0.03)	(0.07)	-	-	(2.17)
Cash and cash equivalents	(1.25)	(0.21)	(0.06)	(0.27)	(0.66)	(2.46)	(0.07)	(1.39)	(0.05)	(6.42)
Net Debt – Third Parties	11.63	18.41	0.42	1.91	1.20	2.48	1.38	(0.93)	0.32	36.82
Net Debt – Intercompany	2.32	(18.88)	2.57	8.37	3.00	1.16	1.04	0.21	0.21	-
Net Debt – Group View	13.95	(0.47)	2.99	10.28	4.20	3.64	2.42	(0.72)	0.53	36.82

Debt maturity coverage split by typology (€bn)

1. Of which 14.1 €bn of long term committed credit lines with maturities beyond September 2017

2. Includes commercial paper

Capital Markets Day 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 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.

Contact us

Email investor.relations@enel.com

Phone +39 06 8305 7975

Web site www.enel.com Luca Passa Head of Group Investor Relations

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