Investor Presentation • Nov 22, 2021
Investor Presentation
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PLENITUDE FITS INTO ENI'S STRATEGY AND INDUSTRY BACKDROP
A UNIQUE PROPOSITION
A STRONG RENEWABLES PIPELINE TO FUEL THE GROWTH
A LEADING RETAIL BUSINESS WITH MULTIPLE GROWTH LEVERS
AN INTEGRATED E-MOBILITY STRATEGY
A SOLID FINANCIAL FRAMEWORK
ANNEX
PLENITUDE FITS INTO ENI'S STRATEGY AND INDUSTRY BACKDROP
A UNIQUE PROPOSITION
A STRONG RENEWABLES PIPELINE TO FUEL THE GROWTH
A LEADING RETAIL BUSINESS WITH MULTIPLE GROWTH LEVERS
AN INTEGRATED E-MOBILITY STRATEGY
A SOLID FINANCIAL FRAMEWORK
ANNEX
1Stated Policies Scenario (STEPS), reflects current policy settings based on a sector-by-sector assessment of the specific policies that are in place, as well as those that have been announced by Governments around the world. 2 Announced Pledges Scenario (APS), assumes that all climate commitments made by Governments around the world, including Nationally Determined Contributions (NDCs) and longer term net zero targets, will be met in full and on time. 3Net Zero Emissions by 2050 Scenario (NZE), sets out a narrow but achievable pathway for the global energy sector to achieve net zero CO2 emissions by 2050.
2 Includes battery electric vehicles, plug-in hybrid electric vehicles and fuel cell electric vehicles. Sales numbers include passenger vehicles, trucks, buses and two/three-wheelers.
3 Announced Pledges Scenario (APS), assumes that all climate commitments made by Governments around the world, including Nationally Determined Contributions (NDCs) and longer term net zero targets, will be met in full and on time.
4 Net Zero Emissions by 2050 Scenario (NZE), sets out a narrow but achievable pathway for the global energy sector to achieve net zero CO2 emissions by 2050.
PLENITUDE FITS INTO ENI'S STRATEGY AND INDUSTRY BACKDROP
A UNIQUE PROPOSITION
A STRONG RENEWABLES PIPELINE TO FUEL THE GROWTH
A LEADING RETAIL BUSINESS WITH MULTIPLE GROWTH LEVERS
AN INTEGRATED E-MOBILITY STRATEGY
A SOLID FINANCIAL FRAMEWORK
ANNEX
Combining generation and supply of green energy
TARGETING NET ZERO BY 2040 & BOOSTING STAKEHOLDER VALUE
Well developed organization Reference shareholder
Note: as of 2021E.
Refers to operating installed capacity and under construction assets. Includes 100% of the consolidated companies and the pro-quota of the non-consolidated companies. Charging points. Includes Greece, Slovenia, Kazakhstan and Australia. Includes storage and other technologies.
1 Includes 100% of the consolidated companies and the pro-quota of the non-consolidated companies.
2 Pro forma for neutralization extra-ordinary effects from derivatives due to market scenario for EUR 0.16 BLN. 9
1 Includes 100% of the consolidated companies and the pro-quota of the non-consolidated companies.
2 Pro forma for neutralization extra-ordinary effects from derivatives due to market scenario for EUR 0.16 BLN.
CASH ALLOCATION TO ACCELERATE GROWTH INVESTMENTS AND ALLOW SHAREHOLDER DISTRIBUTION
OUR TRACK RECORD AND OUR PEOPLE TO DELIVER ON OUR TARGETS ENI ACTING AS A REFERENCE SHAREHOLDER, CONTINUING TO SUPPORT PLENITUDE GROWTH
TARGETING NET ZERO SCOPE 1-2-3 BY 2040
SDG'S AT THE FOUNDATION OF PLENITUDE STAKEHOLDER VALUE CREATION
Stefano Goberti CEO
Alessandro Della Zoppa Head of Renewables
Mauro Fanfoni Head of International Markets and Business Development
Giorgia Molajoni Head of Sustainability, Identity and Digitalization
Pasquale Cuzzola Head of Italian Retail Market
Available during Q&A session
A UNIQUE PROPOSITION
A STRONG RENEWABLES PIPELINE TO FUEL THE GROWTH
A LEADING RETAIL BUSINESS WITH MULTIPLE GROWTH LEVERS
AN INTEGRATED E-MOBILITY STRATEGY
A SOLID FINANCIAL FRAMEWORK
ANNEX
Renewable targets
1 Includes Greece, Australia, Kazakhstan and others. 2Includes Italy, France, Spain and other.
| Other1 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021E renewable installed capacity | 494 MW | 129 MW | 108 MW | 265 MW | -- | 165 MW | |||
| % of 2021E renewable capacity | c.40% | c.10% | c.10% | c.25% | -- | c.15% | |||
| % of 2025E renewable capacity | c.20% | c.30% | c.10% | c.20% | c.10% | c.10% | |||
| a eri h crit wt o gr c gi e at Str |
2 | Government support for the renewable industry |
✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| 3 | Attractive renewable country |
✓ | ✓ | ✓ | ✓ | ✓ | |||
| 3 | Market peculiarities | Markets with established Eni presence and strong growth dynamics |
Large market with strong growth dynamics |
Offshore wind champion |
|||||
| 4 | Strong partnerships | ✓ | ✓ | ✓ | ✓ | ||||
| 5 | Existing presence of Eni | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
1 Includes Greece, Australia, Kazakhstan and others.
1 The IRENA 1.5°C Scenario has been developed as a part of the World Energy Transition Outlook and constitutes a pathway for the world to achieve the Paris Agreement goals – including limiting global temperature rise to 1.5°C above preindustrial levels - and halt the pace of climate change by transforming the global energy landscape.
1High visibility and medium maturity pipeline contains projects that have already secured land rights, demonstrated feasibility and have connection rights and/or permitting process already completed or in an advanced stage.
2The majority of projects in this category have land already secured or about to be secured and the feasibility confirmed.
3 Includes storage and other technologies. 4
Includes Greece, Australia and Kazakhstan.
1 Includes 100% of the consolidated companies and the pro-quota of the non-consolidated companies.
2Includes storage and other technologies.
3Includes Greece, Australia, Kazakhstan and others.
PLENITUDE FITS INTO ENI'S STRATEGY AND INDUSTRY BACKDROP
A UNIQUE PROPOSITION
A STRONG RENEWABLES PIPELINE TO FUEL THE GROWTH
A LEADING RETAIL BUSINESS WITH MULTIPLE GROWTH LEVERS
AN INTEGRATED E-MOBILITY STRATEGY
A SOLID FINANCIAL FRAMEWORK
ANNEX
▪ Long-term partnerships with key equipment and device manufacturers (heating, cooling, etc.)
▪ Near-industry partnerships to build bundled offers (broadband, insurance)
▪ Acquisitions to incorporate knowhow and enter new markets (solar PV, energy efficiency)
| Growth levers | |||||
|---|---|---|---|---|---|
| 1 | International expansion | ||||
| 2 | Green power offer to gas customers | ||||
| 3 | Green power market share capture | ||||
| 4 | Energy efficiency offering | ||||
| 5 | Distributed generation market | ||||
| 6 | Customer-side energy management |
1Includes Greece, Slovenia and others.
2 Pro forma for neutralization extra-ordinary effects from derivatives due to market scenario for EUR 0.16 BLN.
PLENITUDE FITS INTO ENI'S STRATEGY AND INDUSTRY BACKDROP
A UNIQUE PROPOSITION
A STRONG RENEWABLES PIPELINE TO FUEL THE GROWTH
A LEADING RETAIL BUSINESS WITH MULTIPLE GROWTH LEVERS
AN INTEGRATED E-MOBILITY STRATEGY
A SOLID FINANCIAL FRAMEWORK
ANNEX
▪ Retailers, car manufactures, fleets and car sharing, financial institutions and infrastructure players
| Engineering Procurement Construction |
Charging Station Owner |
Charge Point Operator |
Mobility Service Provider |
Scope | Revenue stream | |
|---|---|---|---|---|---|---|
| Business models | ||||||
| Full ownership and operatorship |
PREFERRED MODEL | ▪ Focus on normal, fast and ultra fast charging stations in Italy and Europe |
▪ Recharge services |
|||
| Construction and operatorship |
✖ | ▪ Mainly tailored to B2B customers |
▪One-off sale ▪ Recurrent fees |
|||
| Operatorship | ✖ | ✖ | ▪ Fully-scalable model leveraging proprietary digital platforms |
▪ Recurrent fees |
||
| Mobility Services |
✖ | ✖ | ✖ | ▪ Interoperability with third-party and seamless mobility across Europe |
▪ Pay-per-use ▪ Subscriptions |
E-mobility for Retail & Renewables
Price inelastic offtake of power
Higher number, lower cost to acquire and increased loyalty of retail customers
Perfect natural hedging of own renewables
Multiple touch-points to push retail customers to own charging stations
▪ Increase in public charging stations utilization
▪ Increase of sales of private charging stations to B2B customers
1 Defined as operating cash flow minus capex.
PLENITUDE FITS INTO ENI'S STRATEGY AND INDUSTRY BACKDROP
A UNIQUE PROPOSITION
A STRONG RENEWABLES PIPELINE TO FUEL THE GROWTH
A LEADING RETAIL BUSINESS WITH MULTIPLE GROWTH LEVERS
AN INTEGRATED E-MOBILITY STRATEGY
A SOLID FINANCIAL FRAMEWORK
ANNEX
Ambitious but credible renewables growth targets supported by positive cash flow from retail with strict return thresholds and targets
Net debt zero as of 1st January 2022
Investment grade capital structure targeting Net debt/EBITDA of 3-4x
Dividend policy will allow distribution of capital to investors while retaining flexibility to invest in growth projects
Embedded hedging from integration coupled with active energy management
1 Includes 100% of the consolidated companies and the pro-quota of the non-consolidated companies. 2 Pro forma for neutralization extra-ordinary effects from derivatives due to market scenario for EUR 0.16 BLN.
13 years capex repayment period for each charging station assuming it runs for 1.5h every day.
Combining generation and supply of green energy
TARGETING NET ZERO BY 2040 & BOOSTING STAKEHOLDER VALUE
Established industrial footprint Well developed organization Reference shareholder
PLENITUDE FITS INTO ENI'S STRATEGY AND INDUSTRY BACKDROP
A UNIQUE PROPOSITION
A STRONG RENEWABLES PIPELINE TO FUEL THE GROWTH
A LEADING RETAIL BUSINESS WITH MULTIPLE GROWTH LEVERS
AN INTEGRATED E-MOBILITY STRATEGY
A SOLID FINANCIAL FRAMEWORK
ANNEX – RENEWABLES
Key statistics
1Average price January-October 2021. 2 Does not include REC and capacity payment.
ANNEX – RETAIL
Alessandro Della Zoppa Head of Renewables
Mauro Fanfoni Head of International Markets and Business Development
Nicola Giorgi CFO
Giorgia Molajoni Head of Sustainability, Identity and Digitalization
Pasquale Cuzzola Head of Italian Retail Market
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