capital markets day - enelstrategy2017.enel.com/files/presentation_en/3... · capital markets day...

Capital Markets DayGlobal Infrastructure and Networks

Livio Gallo

Capital Markets Day – Global infrastructure and networks

Integrated model fit for digitalized, low carbon world

Cash flow generation

Digital infrastructure platform

Global risk mitigation

Solid backbone of our growth

62


Positioning and key figures

Key figures

Distributed energy (TWh) 441

End-users (mn) 65

EBITDA 7.3

Opex 3.3

Maintenance capex 1.2

Growth capex 1.1

Financials (€bn)

2017

Connection capex 1.2

2017

1. 2016 market share in terms of number of end-users

Italy (85%)1

224 TWh distributed energy

31.5 mn end-users Iberia (42%) 1


12 mn end-users

Romania (36%) 1


2.8 mn end-users

Argentina (16%) 1


2.5 mn end-users

Brazil (12%) 1


9.9 mn end-users

Chile (33%) 1


1.9 mn end-users

Colombia (23%) 1


3.3 mn end-usersPeru (25%) 1


1.4 mn end-users Total capex 3.5

63


Regulatory scenario: Europe

Stable regulatory frameworks 47% of Group EBITDA

Long term stability

Stable RAB of ~ 31 €bn

over the plan

Regulatory framework

Italy

Iberia

Romania

5.6%

6.5%1

7.7%

2024

2020

2019

Totex in 2020

Return

revision in 2020

Smart meter

roll-out

Country WACC Next regulatory cycle Highlights

641. Nominal pre-tax

Capital Markets Day – Global infrastructure and networksRegulatory scenario: South America

RAB of 10 €bn growing over 30% in the plan


Argentina

Brazil Rio/Celg

Brazil Cearà

Chile

Colombia

Peru

12.5%

12.3%

12.3%

10%

13.5%

12%

2022

2018

2019

Nov 2020

2018

Nov 2018

Improved scenario

in Argentina

New Rio concession

conditions from March 17

RAB maximization


already set

New regulatory

framework

Stable scenario

Country WACC Next regulatory cycle Highlights

65

Capital Markets Day – Global infrastructure and networksDigitalization

Moving from a pipeline to a platform model

Pipeline model Platform model

Digitalized processes

Digital supply chain

Lighthouse projects

Networks automation

Remote control

IoT

Resilience

Crowdworking

Smart meter

Blockchain

Disruptive efficiency

Data driven networks

End-user experience

Improve quality, efficiency

and hosting of distributed

generation

Technologies to enable new

services

Processes convercence

Products

TechnologiesEfficiency

Excellency

Digital transformation

Smart

grids

End-user & new services

End-user

value

66

Capital Markets Day – Global infrastructure and networksDigitalization

Long-term value creation

2017E KPI

Digital data network status

Advanced network metering2

Digital process status1

50%

26%

2.9

Romania

24%

25%

2.5

South

America

84%

99%

3.1

Italy

41%

89%

2.8

Iberia Digitalizationdrivers

Italy

0.4

1.3

1.9

0.2

Iberia

0.5

0.1

0.7

0.1

Romania

0.2

0.1

0.4

0.1

South America

0.1

1.0

0.1

1.2

Disruptive Efficiency

Data DrivenNetworks

End-user Experience

Total capex

4.2% achieved

status by 2020

Degree of digitalization and capex plan 2018-20 (€bn)

671. Digital process status: max level 5

2. This KPI considers smart meters 1.0

Capital Markets Day – Global infrastructure and networksDisruptive efficiency pilot: Digitaly

Digital disruption and saving achievement

Project key figures Main achievements Applied solutions

3.1

4.1

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2017E 2020

Process digitalization Asset

28%

90%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100 %

2017E 2020

Networks monitored by smart tech End-users

• Digital agenda

• Customer storyline

• Chatbot and virtual

assistant

• Advanced sensors

• Drones

• Augmented reality

• Network images recognition

and 3D modelling

Analysed and reviewed all core processes end to end under operation and digital perspective

More than 50 initiatives identified

Expected ~120 €mn savings1 per year

681. 2018-20


Industrial growth: focus on smart meter roll out

South America - Meters (#mn)

6% completed by 2019

0.11.3

0

1

2

3

4

5

6

7

8

9

10

2017E 2020

+1


Romania - Meters (#mn)

0.3

2.1

0

1

2

3

4

5

6

7

8

9

10

2017E 2020

+2

1.6 €bn capex, more than 20mn of meters installed

Iberia - Meters (#mn)


+1

11.2 12.3

0

5

10

15

20

25

2017E 2020

Italy - Smart meter 2.0 (#mn)


1.4

17.4

0

5

10

15

20

25

30

2017E 2020

+162° wave of digital transformation

69


Key technology for network digitalization

Italy: Smart meter 2.0 ’s key features and benefits

End-users

Consumption profile Increased awareness Active demand

Energy operators

Quarter-hourly load curves Flexible rates Enabling value added

services

Network operations

Power outages advanced diagnostics

Widespread network monitoring

Network planning improvement

Metering processes

Big data analytics Local energy balances Enhanced fraud detection

Replacement of 16 million meters with new generation ones

1.3 €bn investment in the 2018-20 period

Totex regulation

70


Efficiency

Europe

South

America75.3 66.3-12.0%

66.1 57.3-13.3%

Cash cost/end users nominal (€)Cash cost evolution1 (€bn)

Europe

South

America75.3 62.8-16.6%

66.1 54.9-17.0%

Cash cost/end users real (€)

-13%

20202017 2017 2020

-17%

OpexMaintenance1

69.060.1

69.0

57.3

711. Excluding one-off

3.0

4.0

1.0

Efficiency 2020

4.5 0.2

2017

(0.7)

FX&CPI

3.3

1.2

-10%


Quality of Service and Network Losses

Minutes of interruption Network Losses (%)

98%

82%

57%

74%

90%

64%

83%89%

2017 2018 2019 2020

0

1

2

3

4

5

6

7

8

9

10

2017 2020

-5%

Europe

South America -9%

-4%

72

Italy

Chile

Romania

Peru

Spain

Brazil

Colombia

Argentina


CELG 2020 Project

Project plan (€m)

RAB 2020

Opex saving

Higher margin

Capex efficiency

~85

~40

~20

~ 560

Annual recurring potential benefits (from 2020)

Actions

• 160

initiatives

• 6 working

groups

Total capex

+21% vs 2017

Remarkable restructuring leads to more than 200% EBITDA increase

12% 9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2017 2020

Losses Network automation (nodes)

……

-

1,00 0.00

2,00 0.00

3,00 0.00

4,00 0.00

5,00 0.00

6,00 0.00

7,00 0.00

8,00 0.00

9,00 0.00

10,0 00.00

2017 2020

New MV lines (km) Minutes of interruption

-

50.0 0

100 .00

150 .00

200 .00

250 .00

2017 2020

1,910223

59 ……

-

200 .00

400 .00

600 .00

800 .00

1,00 0.00

1,20 0.00

1,40 0.00

1,60 0.00

1,80 0.00

2017 20201774

1.043

1774

-40%+277%

-3% +5,200

1.725

5,500300

73

Key perfomance indicators


Industrial growth 2018-20

Growth capex1 by technology (€bn)Growth capex1 by area (€bn)

5%

36%

54% 5%

Smart grid

Smart meter

Quality & efficiency

ICT

48%

20%

7%

25%

Italy Iberia Romania South America

4.7 €bn 4.7 €bn

67.2 mn connected end users

Cumulative growth EBITDA1 1.7 €bn

Average time to EBITDA < 1.5 years

Digitalization as key lever

Key figures

Spread over WACC ~ 400 bps

741. Excluding one-off

Financial targets

EBITDA by geograghy and capex 2017-20 (€bn)

3.5 3.6 3.7 3.7

1.9 2.0 2.1 2.1

1.62.2

2.5 2.70.20.2

0.2 0.2

3.53.9 3.8 3.6

2017 2018 2019 2020

Italy Iberia South America

Romania capex

7.37.9

8.5 8.7

19%

Capex by geography 2018-20 (€bn) Key trends

Diversified geographical footprint

Stable regulatory framework

with predictable returns

Strong efficiencies

Further growth

through committed investments

Strong and sustainable cash generating growth


44%

19%

32%

5%

Italy Iberia

South America Romania

11.3

75

capital markets day - enelstrategy2017.enel.com/files/presentation_en/3... · capital markets day...

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