Enel — Investor Presentation 2016

Jul 28, 2016

July 28, 2016

Agenda

1H 2016 consolidated results Delivery on strategic plan

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 €bn¹ from asset rotation and Slovenske transaction closed EGP implementing country level optimization and Latam merger on track

Financial highlights (€mn)

	1H 2016	1H 2015	∆ yoy	Like-for-like
Revenues	34,150	37,632	-9%
Reported EBITDA	8,053	7,961	+1%
EBITDA1 Ordinary	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)
Capex2	3,714	3,092	+20%
Net debt3	38,138	37,545 (4)	+2%
FFO	4,150	3,023	+37%

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 2015

3. 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, 2015 5. Excludes +262 €mn one-offs in 2015 and +117 €mn in 2016 6. Excludes +123 €mn one-offs in 2015 and +68 €mn in 2016

Delivery on strategic pillars

	2016-19 strategic plan targets	1H 2016 delivery
1	Operational efficiency 2016 cash costs target: -0.9 €bn	Total savings of 0.4 €bn
2	Industrial growth 2016 growth EBITDA target: +0.8 €bn	0.3 €bn growth EBITDA in 1H 2016 2016 growth EBITDA fully secured
3	Group simplification EGP integration and Latam restructuring	EGP implementing country level optimization Latam merger on track
4	Active portfolio management 6 €bn capital recycling over 2015-19	70% plan finalized and Slovenske closed
5	Shareholder remuneration Minimum DPS 2016: 0.18 €/sh	2016 DPS at 0.18 €/sh, +13% yoy

Operational efficiency¹ (€mn)

1. In nominal terms

2. Adjusted figure: -12 €mn one-off in 2015, +31 €mn in 2016

Operational efficiency: opex evolution

Opex evolution1,2 (€mn) Opex by business³

	Networks		-7%		-18%
	€/end user	58.5	56.8	54.2	47.9
		FY 2014	FY 2015	LTM	2019
	Renewables		-1%		-20%
	k€/MW	76.0	78.7	75.2	61.0
		FY 2014	FY 2015	LTM	2019
	Conventional generation4 k€/MW		-11%		-10%
		43.9	39.9	38.9	39.3
		FY 2014	FY 2015	LTM	2019
	Staff		+1 p.p.		-2 p.p.
	% of Total Fixed Costs	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 2016 3. In nominal terms 4. 2014 figure restated for delta perimeter

Industrial growth: operational achievements

• 1. Includes EGP hydro operations
• 1. Includes all other renewables
• 1. Only Italy and Iberia

Industrial growth: capex in execution¹

2016 EBITDA growth secured, with 70% secured in outer years

• 1. Excludes assets held for sale related to Slovenske Elektrarne
• 1. Refers to capacity in Generation and Renewables

Active portfolio management

Disposals already finalized1	(€bn)	Cashed-in1,2
Slovenske Elektrarne3	2.0	1.6
EGP Portugal	0.5	0.5
EGP North America	0.4	0.4
SE Hydropower- SF Energy	0.4	0.4
Hydro Dolomiti	0.3	0.3
Other	0.5	0.5
Total	4.1	3.7

70% of 5-years plan already finalized

• 1. Impact on net debt
• 1. As of July 2016
• 1. Equity consideration for 50% Enel's stake equals to 375 €mn

Group simplification: update on Latam restructuring

• 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
• 11 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
• 1. End of Tender Offer expected ~35 days after the EGMs

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 2015
60% 100%	Improving supply & generation balance	2.0 €bn Enterprise Value
EGPE	Generation mix diversification	11.4x EV/EBITDA 1.2 €mn/MW

Initiation of country level optimization

Acquisition and merger of Metroweb into Enel Open Fiber

Corporate structure	Rationale	New business plan
50% 50%	Accelerated fiber deployment	3.7 €bn capex +1.2 €bn
Holdco	Leverage on Metroweb industrial know-how	250 cities +26 cities
Enel	Coverage of all largest cities One stop platform form telco operators	9.5 mn homes +2 mn
Open Fiber + 30% Metroweb	Lower risk profile	EBITDA of 300 €mn in 2021 75% EBITDA margin

Accelerating Enel Open Fiber business plan

1H 2016 consolidated results Financial results

Market context in the period (change yoy)

1. As of July 27, 2016

Operational highlights

1. Retail customers in Italy and Iberia (free power and gas market )

16

Operational highlights – Generation

Operational highlights – Distribution

Ordinary EBITDA evolution (€mn)

19 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

1. 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

Group adjusted EBITDA by business (€mn)

Global Renewable Energies: EBITDA analysis (€mn)

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

Group adjusted EBITDA by geography (€mn)

EBITDA Italy by business¹ (€mn)

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)

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

Net debt evolution (€mn)

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

Debt and financial expenses (€mn)

Liability management underpins future financial expenses reduction

27

Italy 2016 60% 90% 30% Expected production Hedged production Italy 2017 Spain 2016 Spain 2017 60% 42% 30% Expected production Hedged production 35% 40% 100% 25% Expected production Hedged production 35% 50% 40% Expected production Hedged production 46 €/MWh Spread 1 €/MWh ³ Price² Achieved 62 TWh 65 TWh 73 TWh 74 TWh Regulated / quasi regulated Price driven Spread driven Regulated / quasi regulated Price driven Spread driven Regulated / quasi regulated Price driven Spread driven Regulated / quasi regulated Price driven Spread driven 41 €/MWh Spread 1 €/MWh ³ Price² Achieved 57 €/MWh Spread 1 €/MWh ³ Price² Achieved 50 €/MWh Spread 1 €/MWh ³ Price² Achieved vs. plan vs. plan vs. plan vs. plan 4 4 10% 10%

1. Includes renewable production

Forward sales¹

1. Average hedged price

2. Average on clean spark spread and clean dark spread

3. Includes only mainland production

1H 2016 consolidated results Closing remarks

Closing remarks

1. Paid on June 22nd, 2016

2. Implicit payout of 55% as a consequence of newly issued shares after EGP integration

Investor presentation

1H 2016 consolidated results Annexes

From EBITDA to net income (€mn)

	1H 2016 reported	1H 2015 reported	∆ yoy	1H 2016 ordinary	1H 2015 ordinary	∆ yoy
EBITDA	8,053	7,961	1.2%	7,929	7,688	3.1%
D&A	2,843	2,877		2,804	2,877
EBIT	5,210	5,084	2.5%	5,125	4,811	6.5%
Net financial charges	(1,527)	(1,277)		(1,527)	(1,277)
Net income from equity investments using equity method	52	8		52	8
EBT	3,735	3,815	-2.1%	3,650	3,542	3.0%
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	1,833	0.1%	1,742	1,604	8.6%

Reported EBITDA matrix (€mn)

		Global Generation & Trading		Global Infrastructure & Networks		Renewable Energies		Retail	Services	& Other	Total3	Total3
	1H 2016	1H 2015	1H 2016	1H 2015	1H 2016	1H 2015	1H 2016	1H 2015	1H 2016	1H 2015	1H 2016	1H 2015
Italy	506	562	1,778	1,807	305	537	997	694	48	78	3,329	3,141
Iberia	501	639	950	906	117	111	419	383	(14)	41	1,856	1,969
Latam	986	774	692	707	198	166	-	-	(53)	(44)	1,625	1,437
Argentina	53	41	102	56	-	-	-	-	-	-	155	97
Brazil	91	83	185	219	-	-	-	-	(16)	(16)	260	286
Chile	390	210	112	123	-	-	-	-	(37)	(20)	465	313
Colombia	305	295	193	215	-	-	-	-	-	(8)	498	502
Peru	147	145	100	94	-	-	-	-	-	-	247	239
East Europe	228	258	103	119	23	22	21	12	1	3	353	392
Romania	(1)	-	103	119	-	-	20	16	1	3	123	138
Russia	78	95	-	-	-	-	-	-	-	-	78	95
Slovakia	156	167	-	-	-	-	1	-	-	-	157	167
Other1	(5)	(4)	-	-	-	-	-	(4)	-	-	(5)	(8)
North America	-	-	-	-	234	194	-	-	-	-	-	-
Other Countries2	-	-	-	-	1	-	-	-	-	-	-	-
Other	(13)	(7)	2	-	42	48	-	-	(19)	(49)	(30)	(56)
Total	2,208	2,226	3,525	3,539	920	1,078	1,437	1,089	(37)	29	8,053	7,961

1. Includes Belgium, Greece, France and Bulgaria

2. Includes South Africa and India

3. Total EBITDA by country excludes contribution from Global Renewable Energies

Ordinary¹EBITDA matrix (€mn)

		Global Generation & Trading		Global Infrastructure & Networks		Renewable Energies		Retail	Services	& Other	Total4	Total4
	1H 2016	1H 2015	1H 2016	1H 2015	1H 2016	1H 2015	1H 2016	1H 2015	1H 2016	1H 2015	1H 2016	1H 2015
Italy	382	421	1,778	1,807	305	405	997	694	48	78	3,205	3,000
Iberia	501	639	950	906	117	111	419	383	(14)	41	1,856	1,969
Latam	986	774	692	707	198	166	-	-	(53)	(44)	1,625	1,437
Argentina	53	41	102	56	-	-	-	-	-	-	155	97
Brazil	91	83	185	219	-	-	-	-	(16)	(16)	260	286
Chile	390	210	112	123	-	-	-	-	(37)	(20)	465	313
Colombia	305	295	193	215	-	-	-	-	-	(8)	498	502
Peru	147	145	100	94	-	-	-	-	-	-	247	239
East Europe	228	258	103	119	23	22	21	12	1	3	353	392
Romania	(1)	-	103	119	-	-	20	16	1	3	123	138
Russia	78	95	-	-	-	-	-	-	-	-	78	95
Slovakia	156	167	-	-	-	-	1	-	-	-	157	167
Other2	(5)	(4)	-	-	-	-	-	(4)	-	-	(5)	(8)
North America	-	-	-	-	234	194	-	-	-	-	-	-
Other Countries3	-	-	-	-	1	-	-	-	-	-	-	-
Other	(13)	(7)	2	-	42	48	-	-	(19)	(49)	(30)	(56)
Total	2,084	2,085	3,525	3,539	920	946	1,437	1,089	(37)	29	7,929	7,688

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

EBITDA from Reported to Adjusted: breakdown by geography

1H 2016	Italy	Iberia	Latam	East Europe	Global Renewable Energies	Other	Total
Reported	3,329	1,856	1,625	353	920	(30)	8,053
Extraordinary items	124	-	-	-	-	-	124
Ordinary	3,205	1,856	1,625	353	920	(30)	7,929
One-offs		109	(11)	-	-	1 9	117
Adjusted	3,205	1,747	1,636	353	920	(49)	7,812

1H 2015	Italy	Iberia	Latam	East Europe	Global Renewable Energies	Other	Total
Reported	3,141	1,969	1,437	392	1,078	(56)	7,961
Extraordinary items	141	-	-	-	132	-	273
Ordinary	3,000	1,969	1,437	392	946	(56)	7,688
One-offs	(16)	238	4 0				262
Adjusted	3,016	1,731	1,397	392	946	(56)	7,426

EBITDA from Reported to Adjusted: breakdown by business line

1H 2016	Global Generation & Trading	Global Infrastructure & Networks	Global Renewable Energies	Retail	Services & Holding	Total
Reported	2,216	3,525	920	1,437	(45)	8,053
Extraordinary items	124	-	-	-	-	124
Ordinary	2,092	3,525	920	1,437	(45)	7,929
One-offs	7 4	3		1 6	2 4	117
Adjusted	2,018	3,522	920	1,421	(69)	7,812

1H 2015	Global Generation & Trading	Global Infrastructure & Networks	Global Renewable Energies	Retail	Services & Holding	Total
Reported	2,232	3,539	1,078	1,089	2 3	7,961
Extraordinary items	141	-	132	-	-	273
Ordinary	2,091	3,539	946	1,089	2 3	7,688
One-offs	233	1 0		4	1 5	262
Adjusted	1,858	3,529	946	1,085	8	7,426

Operational efficiency: opex (€mn)

Forward sales

Peru

Colombia

Brazil

Capex¹

Capex by business¹ (€mn)

• 1. 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 40 1H2015
• 1. Includes upstream gas and other

Gross debt structure

Debt structure by instrument (€bn)

Debt by instrument	Enel Spa	EFI	Italy	Iberia	Latam	Renewables	East Europe & Other	Total
Bonds	13.45	18.74	-	0.10	3.50	-	0.44	36.23
Bank Loans	-	-	3.16	0.65	1.02	3.30	0.32	8.45
Tax Partnership	-	-	-	-	-	1.06	-	1.06
Other Loans	-	-	-	0.53	0.22	0.33	-	1.08
Other short term debt	1.26	0.04	0.07	0.16	0.09	0.02	-	1.64
Commercial Paper	-	0.37	-	0.11	-	-	-	0.48
Gross debt	14.71	19.15	3.23	1.55	4.83	4.71	0.76	48.94
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	12.60	19.09	1.26	0.14	2.09	4.01	(1.05)	38.14
Net Debt – Intercompany	1.48	(19.85)	8.06	2.98	(0.14)	3.08	4.39	-
Net Debt – Group View	14.08	(0.76)	9.32	3.12	1.95	7.09	3.34	38.14

Debt maturity coverage split by typology (€bn)

1. Of which 13.5 €bn of long term committed credit lines with maturities beyond June 2017

Group total net installed capacity: breakdown by technology and geography

MW	Hydro1	Wind	Geothermal	Solar & Other	Nuclear	Coal	CCGT	Oil&Gas ST/OCGT	Total
Italy	12,421	728	761	99	-	6,478	4,535	2,739	27,760
Iberia	4,763	1,616	-	46	3,318	5,168	5,445	2,417	22,774
Latam	9,985	1,426	-	497	-	835	4,316	2,584	19,642
East Europe	1,609	741	-	134	1,814	4,011	1,215	4,513	14,036
Romania	-	498	-	36	-	-	-	-	534
Russia	-	-	-	-	-	3,623	809	4,513	8,945
Slovakia	1,590	-	-	28	1,814	388	-	-	3,820
Other2	19	242	-	71	-	-	406	-	738
North America	316	2,090	71	29	-	-	-	-	2,506
Other Countries3	-	172	-	158	-	-	-	-	331
Total	29,095	6,773	832	964	5,132	16,491	15,511	12,253	87,050

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) 44

2. Includes Belgium, Greece and Bulgaria

3. Includes South Africa and India

Group total net production: breakdown by technology and geography

GWh	Hydro1	Wind	Geothermal	Solar & Other	Nuclear	Coal	CCGT	Oil&Gas ST/OCGT	Total
Italy	8,571	765	2,935	50	-	13,817	3,283	191	29,611
Iberia	5,085	2,015	-	90	12,843	6,580	2,836	3,198	32,648
Latam	16,946	1,747	-	284	-	1,902	9,054	2,490	32,423
East Europe	1,097	864	-	76	6,244	10,169	2,352	7,767	28,569
Romania	-	601	-	22	-	-	-	-	623
Russia	-	-	-	-	-	9,341	2,000	7,767	19,108
Slovakia	1,071	-	-	4	6,244	827	-	-	8,146
Other2	27	263	-	50	-	-	352	-	692
North America	553	3,973	208	22	-	-	-	-	4,756
Other Countries3	-	161	-	9	-	-	-	-	171
Total	32,252	9,526	3,143	531	19,087	32,468	17,525	13,646	128,178

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) 45

2. Includes Belgium, Greece and Bulgaria

3. Includes South Africa and India

Group total additional capacity: breakdown by technology and geography

MW	Hydro1	Wind	Geothermal	Solar & Other	Nuclear	Coal	CCGT	Oil&Gas ST/OCGT	Total
Italy	3	8	-	15	-	-	-	-	26
Iberia	-	-	-	-	-	-	-	-	-
Latam	40	112	-	298	-	-	-	-	450
East Europe	-	-	-	-	-	-	-	-	-
Romania	-	-	-	-	-	-	-	-	-
Russia	-	-	-	-	-	-	-	-	-
Slovakia	-	-	-	-	-	-	-	-	-
Other2	-	-	-	-	-	-	-	-	-
North America	-	-	-	-	-	-	-	-	-
Other Countries3	-	-	-	149	-	-	-	-	149
Total	43	120	-	462	-	-	-	-	625

1. Includes Belgium, Greece and Bulgaria

2. Includes South Africa and India

EGP projects in execution: breakdown by technology and geography (MW)

MW	Wind	Hydro	Geothermal	Solar	Biomass	Total
Italy	-	8	2	-	32	42
Iberia	-	-	-	-	-	-
Latam	783	152	38	869	-	1,842
East Europe1	154	-	-	-	-	154
North America	658	-	-	150	-	808
Other Countries2	904	-	-	165	-	1,069
Total	2,499	160	40	1,184	32	3,915

EGP projects under construction: breakdown by technology and geography (MW)

MW	Wind	Hydro	Geothermal	Solar	Biomass	Total
Italy	-	8	-	-	1	9
Iberia	-	-	-	-	-	-
Latam	611	152	38	766	-	1,567
East Europe1	-	-	-	-	-	-
North America	658	-	-	150	-	808
Other Countries2	199	-	-	165	-	364
Total	1,468	160	38	1,081	1	2,748

1. Includes Belgium, Greece and Bulgaria 48

EGP projects ready to build : breakdown by technology and geography (MW)

MW	Wind	Hydro	Geothermal	Solar	Biomass	Total
Italy	-	-	2	-	31	33
Iberia	-	-	-	-	-	-
Latam	172	-	-	103	-	275
East Europe1	154	-	-	-	-	154
North America	-	-	-	-	-	-
Other Countries2	705	-	-	-	-	705
Total	1,031	-	2	103	31	1,167

Global Renewable Energies gross pipeline¹

Global Renewable Energies contracts portfolio¹

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.

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