the enel group: sustainability, macro-energy outlook and...
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The Enel Group: Sustainability, Macro-Energy Outlook and Industrial Strategies February, 25th 2016 – Washington DC, World Bank
Outline
2
The Enel Group at a glance 1
The Economic and Energy Outlook
2 The Enel Group and Sustainability
4 The Long term view and the Group Strategy
3
Outline
3
The Enel Group at a glance 1
The Economic and Energy Outlook
2 The Enel Group and Sustainability
4 The Long term view and the Group Strategy
3
Enel today1
Global diversified player in more than 30 countries
The Enel Group
1. As of 30th September 2015; %, as of 31/12/2014
2. Among private operators
= Enel presence
GW
= Market position = Market share
= Enel Green Power presence
= Enel Green Power Capacity 4
India
• ~ 0.2 GW
Indonesia
• Trading activities
Africa
• ~ 0.01 GW
• Upstream gas activities
Romania
• Capacity: 0.5 GW
• 2.7 mn customers
Russia
• Capacity: 8.9 GW
• Presence in retail
Slovakia
• Capacity: 4.0 GW
Italy
• Capacity: 30.8 GW
(of which 3.1 GW)
• 30.8 mn customers power + gas
• Upstream gas activities
Iberia
• Capacity: 23.5 GW
(of which 2.2 GW)
• 12.4 mn customers power + gas
Argentina
• Capacity: 4.4 GW
• 2.5 mn customers
Brazil
• Capacity: 1.4 GW
(of which 0.4 GW)
• 6.6 mn customers
# %
02/03/2016
USA + Canada
• Capacity: 2.1 GW
Central America
• Capacity: 1.0 GW
Colombia
• Capacity: 3.0 GW
• 2.8 mn customers
Peru
Capacity: 1.9 GW
• 1.3 mn customers
Chile
• Capacity: 6.9 GW
(of which 0.6 GW)
• 1.8 mn customers
Uruguay
• 0.05 GW
Rest of Europe
• Presence in generation
• 0.7 GW (of which 0.3 GW)
• Presence in retail
44% of Group EBITDA
61 mn end users
38.5 mn smart meters
39 €bn RAB2
Leading network operator
12% of Group
EBITDA
56 mn power
customers
5 mn gas customers
Leading retail business
11% of Group EBITDA
10.5 GW installed
Leading renewable operator
Balanced generation portfolio
30% of Group EBITDA
79.1 GW installed
Ideally positioned to capture opportunities in all segments
1. Data as of 31th December 2015
2. As of 31st December 2014
3. Including EGP Hydro operations
5
32% 9%
6%
18%
19%
16%
Coal
Oil & Gas
Hydro3 Renewables
Nuclear
CCGT ~89.6
GW
Enel today1
Outline
6
The Enel Group at a glance 1
The Economic and Energy Outlook
2 The Enel Group and Sustainability
4 The Long term view and the Group Strategy
3
Enel’s culture
7
Vision
Values and Behaviours
Mission 2025
1. Responsibility
2. Innovation
3. Trust
4. Proactivity
Open Power to solve the world’s biggest challenges
1. Open Energy to more people We will use and extend our global reach and scale to connect more people to secure
and sustainable energy, with a special focus on Latin America and Africa
2. Open Energy to new technologies We will lead development and deployment of technologies to generate and distribute
energy more sustainably, with a special focus on renewables and smart grids
3. Open up new ways of managing energy for people We will develop more services built around people’s needs to help them use and
manage energy more efficiently, with a focus on smart meters and digitization
4. Open up energy to new uses We will develop new services that use energy to tackle global challenges, with a focus
on connectivity and e-mobility
5. Open up to more partnerships We will unite a network of collaborators in research, technology, product development,
and marketing to build new solutions together
8
Enel Sustainability
PROJECTS DASHBOARD DASHBOARD DASHBOARD
Stillwater Solar Geothermal Hybrid ProjectEnel Green Power North America (EGP-NA) implemented its first solar project in 2011. The Stillwater SolarGeothermal Hybrid Project is located in Fallon, Nevada and consists of over 89,000 polycrystallinesilicon PV panels built on 240 acres.
KiteGenKiteGen è il primo prototipo di generatore eolicoche sfrutta lo srotolamento di cavi collegati auna vela volante. La vela volante utilizzata neiprimi test è la stessa impiegata nel kitesurf
TrinumRealizzato dall’abruzzese Innova, è un sistemasolare a concentrazione trigenerativo, in gradocioè di svolgere contemporaneamente tre funzioni:produrre energia elettrica (1 kW), riscaldamento (3 kW) e raffreddamento
Reliable
disclosure and
storytelling to
Investor and
other Stakeholders
Focused on
business
Creating
Shared Value
measuring the
real impact
Protecting and
adding value to
the existing
business and
empowering the
new ones
9
• ACCESS TO ELECTRICITY: 3 million beneficiaries in Africa, Asia, Latin America
by 2020
• EDUCATION: 400,000 beneficiaries by 2020
• SOCIAL AND ECONOMIC DEVELOPMENT : 500,000 beneficiaries by 2020
• CLIMATE CHANGE : Carbon neutrality by 2050
Context Enel’s positioning
• United Nations’ post-2015 Sustainable Development Goals
618
465
418395 380
<350
1990 2007 2012 2013 2014 2020 2020 2050
CO2 specif ic emissions performance and target of reduction
(gCO2/kWheq.)
Carbon
Neutrality
396
28%
new
target
target
The strategic plan embeds our commitments to United Nations Sustainable Development Goals
Environment: a stable and recognized
commitment
TO
FROM
10
For the first time an Italian company in the
“Board of the United Nations Global Compact”
First company signatory
of the UN campaign
towards sustainable
capital markets
Our commitment on sustainability is recognized by
investors and internal community
11
SRI Investors in Enel’s share capital
Socially Responsible investors in free
float
8,6%
Long Term Institutional Investors
62,1%
12
Our commitment on sustainability is recognized by
investors and internal community
Group Biodiversity Policy
Continued protection of the species on the Red List of the
International Union for Conservation of Nature and Natural
Resources (IUCN) in protected areas near power plants
Other environmental targets
13
HECTARES OF
PARKLAND COVERED
BY BIODIVERSITY
PROJECTS
PROJECTS
AROUND THE
WORLD
PROJECTS 521
BENEFICIARIES 2,4 M
INVESTMENT 34,1 M
30 SEPTEMBER 2015
A growing commitment in the world creating shared
value for us and for the communities
ACCESS TO
ELECTRICITY
SOCIAL AND ECONOMIC
DEVELOPMENT OF
COMMUNITIES
SUPPORT TO LOCAL
COMMUNITIES
OPERATIONAL
EFFICIENCY
n.91
n.127
n.239
n.64
Project Focus
14
Social and Economic Development - OLLAGUE (Chile)
• Location: Candarave District -Ollague
• Category: Access to electricity
• 2015 Beneficiaries: 300
• Status: on going
• Partners: Local NGO, Barefoot College, Antofagasta
University, mine El Abra, Local Municipality
VALUES FOR ENEL
VALUES FOR THE COMMUNITY
Installation of OFFGRID solutions in
isolated areas and testing of innovative
hybrid solutions to be replicated in other
contexts of rural electrification.
Technical training of local workers who will
be entrusted with the management and
maintenance of the plant.
The installation of production capacity and technical
know-how and the definition of a replicable Hybrid
plant model.
Experience in the application of the CSV model
(Creating Shared Value) in contexts of protected
indigenous communities.
Availability of electric energy and hot water (before
only 2 hours a day). Development of entrepreneurship
through the engagement of the women in the Barefoot
College program. Creation of new job opportunities in
the renewable energy and tourism fields.
Ollagüe is a remote village on the border between
Chile and Bolivia, 3,500 meters above sea level in
the desert, 160 km from Calama. This area is
inhabited by between 50 and 100 families from the
Quechua indigenous community, whose main
activity is sheep farming. In Ollagüe Enel has built an
OFFGRID HYBRID SYSTEM. This technologic is
innovative because through a component of solar
photovoltaic (250 kW), a wind power (30 kW) with
batteries, diesel backup and electricity/water
cogeneration system it allows the community to
have clean energy for the whole day. Due to geo-
climatic specific conditions, innovative
technological choices have been adopted, such as
the use of wind turbines with vertical blades and
batteries in molten salts, that guarantee operation in
contexts of high irradiation and rarefied air.
The involvement of the local community as part
of the project, from the analysis and engineering
phases to the plant management has been carried
out through a public and private partnership that
brought closer municipalities and local communities
with academia (University of Antofagasta and Chile)
and international partners such as the Barefoot
College. This management model makes the
community responsible of the plant rendering Ollagüe
an example of a smart village.
CHILE
BUSINESS ISSUE
PROJECT
15
VALUE FOR ENEL
VALUE FOR THE COMMUNITY
Defend existing business and open
new job opportunities favouring the
social and economic development of
the communities in the countries where
we operate.
Stakeholders’ loyalty and opening of new business
opportunities.
Improvement of cultivation techniques, marketing of
products and increase of the disposible income,
reduction of emigration.
PERU
BUSINESS ISSUE
PROJECT
Social and Economic Development – CAFE’ CURIBAMBA (Peru)
• Location: Junín
• Category: Social – Economic Development of
communities
• 2015 Beneficiaries: 165
• Status: Da 2012 - al 2020 on going
• Partners: Bisetti Cafè Distribution
Render a local product an opportunity of social
inclusion and a boost to the economic development
of rural communities.
The Cafè Curibamba project was born in 2012 and
it has been presented at Expo in the occasion of the
World Day dedicated to Coffee in the Enel pavilion.
Edegel company is working on the design of a 200
MW Hydroelectric Plant, in the basins of the rivers
Coman, Uchubamba and Tulumayo. As part of this
project the project has been promoted with the goal
of engaging local communities with whom to share
a path towards sustainable growth.
Results:
• More than 150 families in a rural region of Peru
have grown out of poverty;
• Training;
• 35 hectares of land reborn with new crops and
coffee production enhanced and re-launched thanks
to a well known brand worldwide;
• Infrastructural Development;
• Construction of solar driers;
Partnership with Bisetti roasting, that is in charge
of the selection and distribution of the Curibamba
Cafè.
The quality of the coffee has increased from a scale
of 63 to 83 today.
16
VALUE FOR ENEL
VALUE FOR THE COMMUNITY
Construction of a new hydroelectric
plant. Open new opportunities through
social economic development, higher
the living standards and disposable
income.
Construction of the plant without delays, try an
innovative design and site management, IFC
certification on development methodology
Involving local labor in the construction and
maintenance of the plant. Technical and vocational
training, increase in disposable income
BRAZIL
BUSINESS ISSUE
PROJECT
Social and Economic Development - APIACAS (Brazil)
• Location: Alta Floresta (Mato Grosso, Brazil)
• Category: Social and economic development of
communities
• 2015 Beneficiaries: 0
• Status: From June 2014 - to June 2016
• Partners: FGV PROJECTOS (FONDACAO GETULIO
VARGAS)
Enel Green Power has started working on the
construction of the new hydroelectric complex of
Apiacás in the state of Mato Grosso. Apiacás will
consist of three plants in cascade, called Salto
Apiacás”, “Cabeza de Boi” e “Fazenda”, for a
total installed capacity of 102 MW, with 7 turbines
of approximately 14.5 MW each. Once in
operation, the hydroelectric complex will be able to
generate up to about 490 GWh per year, thus
meeting the great demand for new electricity in
the country, which is estimated to grow at an
average annual rate of 4% until 2020. In order to
reduce domestic consumption at the construction
site, a photovoltaic thin "stand-alone" film will
be installed, ie. not connected to the network,
with an additional installed capacity of 1.2 MW.
The development project of the construction site
of Apiacás is an example of Sustainable
Construction Site. The communities contribute to
the design and construction works and with this
project, IFC (International Finance Corporation of
the World Bank) is assessing the tools of CSV as
an example of sustainability assessment.
17
Access to Electricity - BAREFOOT COLLEGE
The partnership with the Indian NGO Barefoot
College is an example of sustaining and
creating development in a concrete and
measurable way since 2012. The project
involved 39 illiterate women coming from
isolated and poor villages without access to
electricity in Peru, Chile, Guatemala, Mexico,
Colombia, El Salvador, Brazil, Ecuador,
Panama. These women have spent six months
in the North of India, at the Barefoot College, to
learn how to install and maintain small
photovoltaic systems. Following the trip to India
they return to their homes as solar technicians
and lead their activity using photovoltaic kits
provided by Enel Green Power, and bring light,
development and work to the areas. Since
2012, the project involved 41 communities in
cooperation with 10 local NGOs, impacting
more than 19thousand people who beneficiated
from the electrification promoted by the project.
This project in cooperation with the Barefoot
College is narrated through a documentary
"Bring the Sun Home“.
• Location: Peru, Ecuador, Colombia, Mexico,
El Salvador, Guatemala, Brazil, Chile, Panama,
Kenya
• Category: Access to electricity
• Beneficiaries: 19.680
• Status: 2012 - on going
• Partners: Local NGO, UN Women, UNDP, National
and Regional Govs, Rural Electrification Offices,
Barefoot College
PROJECT
Need of installing off-grid solutions in
isolated areas in countries where we
operate. Technical training and job
opportunities for women who need to install
and maintain the equipment.
Electrification of isolated areas that have no access to
the network promoting good relations with the territory
and a sustainable development model.
Availability of electricity.
Creation of new occupations and socio-economic
development, predominantly female and
employment development. Energy cost savings.
BUSINESS ISSUE
VALUE FOR ENEL
VALUE FOR THE COMMUNITY
18
19
Creating shared value :
Our way to change the world
Outline
20
The Enel Group at a glance 1
The Economic and Energy Outlook
2 The Enel Group and Sustainability
4 The Long term view and the Group Strategy
3
Monetary policies divergences and Emerging Markets capital flights
21
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
US FED
EU ECB
0
20
40
60
80
100
120
140
160
180
200
220
Effects on capital flows... US & ECB policy rates ...and financial markets
Mexico
India
Colombia
Chile
Brazil
South Africa
Perù
80
100
120
140
160
180
GDP & Real domestic demand
EU output
gap?
Stock
exchange
performances.
Jan 2008=100
Source: Enel elaborations on Bloomberg and Reuters data
’08 ’09 ’10 ’11 ’12 ’13 ’14 ‘15
GDP US
GDP EU
US Internal Demand
EU Internal Demand
’08 ’09 ’10 ’11 ’12 ’13 ’14 ‘15
’08 ’09 ’10 ’11 ’12 ’13 ’14 ‘15
Spillover effects of the US rate hiking remain uncertain
’08 ’09 ’10 ’11 ’12 ’13 ’14 ‘15
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
2.600
2.800
3.000
3.200
3.400
’15 ’14 ’13 ’12 ‘10
09 ’08
’07 ‘11 ’16
Bank loans
Bonds
(Bln of USD)
(Jan 2008=100)
e
22
Four main (long and short term) issues have contributed to
the low commodity prices level
OPEC Strategy: resilience to
cut production
Huge investments in
energy E&P and new
technologies
The effect of the Chinese
slow-down
The strong dollar in the
foreing exchange markets
3.000
4.000
5.000
6.000
7.000
8.000
01/01/2015 01/01/2016 01/07/2015
-44%
0
20
40
60
80
100
120
140
160
180
200
2000 2005 2010 2015
Bln of US$ in oil investm E&P
brent ($/bbl) OPEC members are likely to
continue producing more than
their share as they push to
compensate for low prices by
increasing output.
Iran and Iraq resurgence is a
major development
USA shale oil is showing a great
resilience– Total production from
9,5M bpd in Jul’15 to 9,1M in
Dec’15 (<5%)
Russian oil output (10,7M bpd)
hits post-Soviet record high in
Dec 2015
1 2 3 4
High prices
followed by huge
E&P investments
Source: Enel elaboration on Bloomberg, EIA, OPEC
Earlier than expected Iranian exports and mild winter weather represent further low price factors
(300 Composite Shangai Index)
20
30
40
50
60
70
80
90
100
110
10,5
10,0
11,5
11,0
13,5
13,0
12,5
12,0
2011 2013 2012 2014 2015
DXY Inverted(lhs)
WTI $/bbl (rhs)
45
50
48
48
46
46
Aluminium
Steel
Coal
Nickel
Copper
Zinc
(China’s % of global commodity demand)
The above mentioned factors have produced relevant effects both on Latam countries…
23
Impact on growth of 1% point decline
in Brazil’s growth
MSCI Latam index1
50
100
150
200
’15 ’14 ’13 ’12 ’11 ’10 ’09 ’08 ’07
1. The MSCI Latin America Index captures large and mid cap representation across 5 Emerging Markets (EM) countries in Latin America
Latam area shows the weakest growth rates among the emerging markets
2. World Bank source is GEP 2015
Source: Enel elaboration on BIS, IMF, Bloomberg and Reuters data
Impact on growth of 1% point decline
in China’s growth
Reuters commodity Index
MS Latam Index
(Jan 2008=100)
2 2
60
75
90
105 -25%
CLP/USD
Copper
0
40
80
-41%
BRL/USD
Iron ore
100
80
60
-33%
ZAR/USD
Platinum
80
100-18%
PEN/USD
Gold
Chile
Brazil South Africa
Peru Colombia
Russia
Source: Enel elaboration on Bloomberg and Reuters
24
-8
-6
-4
-2
0
2
4
6
8
10
12
14
IDR PEN ZAR CLP NGN RUB COP MXN TWD BRL
Oil
Bulk commodities
Base metals
Precious metals
Commodity downdraft
hitting differently
Big exposure
to metals Big exposure to
oil prices
Limited
exposure
100
80
60
40
-54%
RUB/USD
Brent
100
80
60
40
-38%
COP/USD
Brent
…and other emerging markets commodity producers
’14 ’15 ‘16
’14 ’15 ‘16 ’14 ’15 ‘16
High dependence on commodity increases the emerging markets FX volatility
’14 ’15 ‘16
’14 ’15 ‘16 ’14 ’15 ‘16
(% net exports of GDP) (Jan
’14=!00)
-39%
-69% -40%
-20% -61%
-65%
Behind the commodity cycle, many emerging markets show structural gridlocks
25
Industrial Production Growth YoY Growth of Total Factor Productivity
-6
-4
-2
0
2
4
2014 2013 2010 2007
Peru Colombia Chile Brazil
-4
-2
0
2
4
6
2014 2013 2010 2007
Russia India South Africa Turkey
-5
0
5
10
15
2013 2010 2007 2014
-5
0
5
10
15
20
2014 2013 2010 2007
Chile Colombia Peru Brazil
India South Africa Russia Turkey
Structural adjustments necessary to move from export-led growth models
Source: Enel elaborations on Global Insight, Bloomberg, OECD and Reuters data
54
7
9
Peru Colombia Chile Brazil Argentina*
30
CPI above central banks targets
4,5% (+/-1%)
3% (+/-1%)
3% (+/-1%) 2%
(+/-1%)
20%-
25%
*Argentina: according to the Finance Minister Prat-Gray, inflation target is at a range between 20% and 25%.
(%yoy) (%yoy) (%yoy)
Source: EIA and Reuters. Bloomberg New Energy Finance, Jan 2016,
Note: For green investment graph, figures include corporate and government R&D, investments in Smart Technologies as well as investments in all renewable technologies excluding large hydro.
26
Clean energy investments do not seem to be affected by the commodity collapse
329316
272297
318
274
207206
175
128
62
-50
0
50
100
150
200
250
300
350
0
50
100
150
15 14 13 12 11 10 09 08 07 06 05
88
04
Clean energy investments - lhs
Brent (spot price) - rhs 0,9%
RoW
Opec
Non OECD
OECD
World
Oil
Supply
93,2
31,1
36,3
25,8
World
Oil
Demand
92,4
46,7
45,7
Opec
Non OECD
+2%
RoW
OECD
World Oil
Supply
95,6
31,7
37,4
26,5
World Oil
Demand
93,8
47,5
46,3
2014 2015 Oil prices and clean energy investments (bn $US)
Iran and Iraq renewed production will add pressure at the current market over-supply
46,6
26,0
RoW
95,2
World Oil
Demand
World Oil
Supply
Non OECD
Opec
95,9
OECD
48,6
0,8%
39,2
30,7
2016e
27
The electricity demand decoupling according to the
economic development stage
Germany UK USA
Source: Enel elaborations on Local TSO, Enerdata, IMF, World Bank
1. EU panle: Italy, Spain, France and Germany. 2. Latam panel: Argentina, Brazil, Chile, Colombia and Peru
Brazil Chile Kenya
85
90
95
100
105
110
2014 2013 2012 2011 2010
-8%
+6%
85
90
95
100
105
110
2014 2013 2012 2011 2010
+8%
-9%
95
100
105
110
2010 2011 2012 2013 2014
+8%
-1%
90
100
110
120
2014 2013 2012 2011 2010
+9% +14%
90
100
110
120
2014 2013 2012 2011 2010
+19% +20%
90
100
110
120
130
140
2010 2011 2012 2013 2014
+33% +39%
2010=100
EU electricty demand1
Latam electricty demand2
Historical values Forecasts
O
E
C
D
N
O
N
O
E
C
D
GDP pc Electricity Consumption pc
(TWh)
(TWh)
Outline
28
The Enel Group at a glance 1
The Economic and Energy Outlook
2 The Enel Group and Sustainability
4 The Long term view and the Group Strategy
3
29
Enel GDP assumptions for selected emerging markets
of business interest
4,0
3,7
3,3
3,5
3,3
3,0
18 17 16
3,5
3,2
3,6
3,2
2,8
18 17
3,0
16
7,67,5
7,5
7,97,9
7,8
18 17 16
2,7
2,5
2,3
1,61,6
1,4
18 17 16
4,84,5
4,24,5
3,3
18
4,6
17 16
4,2
3,7
3,22,9
2,4
18
3,1
17 16
3,8
3,2
2,2
3,0
1,9
0,7
18 17 16
2,8
0,2 1,5
1,4
-2,5
18 17 16
Colombia Mexico India South Africa
Argentina Brazil Chile Peru
(% yoy)
CPI
World Bank Enel
Source Enel elaboration on IMF and Oxford Economics data. World Bank estimates from the GE 2016P
30
239 21 10
63 41
2015
43 28
1995
1.764
1.200
294
2035
3.593
2.200
731
558
2.000
525
417
3.013
> 0,5 Mln
> 1 Mln
1> x >5 Mln
5 > x >10 Mln
> 10Mln
Increasing energy demand will represent the main key
growth factor in emerging and developing countries
Source Enel elaboration on BoAML, Enerdata, WEO 2015, McKinsey
(TWh)
4.400
4.600
2.700
5.200
2.200
1.900
2.000
900
1.400
400
9.600
2035
1.900
Other Asia 3.000
Africa 2.300
Latam
2015
1.000
1.000
India 2.900 700
OECD Europe 3.100 400
OECD Americas 6.000
China
10
6
8
47
23
Energy
Efficiency
Total T&D E&P fossil
fuels,
transport
and
refining
Power
generation
(Tln of $US)
Population and urbanization growth Electricity demand increase
Scarce electrification access and an increasing middle class will sustain energy demand
The required investments
31
1995 today 2035
Generation
Transmission &
Distribution
Retail
Traditional model Current context
An evolving competitive landscape through the whole
supply chain
Future landscape
+
+
+
The market functioning...
...and its actors
32
7,9
96%
2002
4% 7,6
2005
95%
5%
2012
58%
42%
16,7
62%
38%
2015
15
17
64%
36%
2019
Historical EBITDA
Abroad
Italy
EBITDA composition and evolution (€bn)
Wider geographical diversification and decreasing business risk profile
Regulated and quasi-regulated
11%
31%
46%
11%
15
12%
28%
43%
16%
1%
17
2015 EBITDA
38%
21% 21%
8%
11%
15
36%
21% 23%
2%
16% 17
Networks
Renewables
Retail
Generation2
Regulated and quasi-regulated
S&H
Latam
East Europe
Italy
Iberia
Renewables S&H
1. Including Holding and Services
2. Including retail in Iberia
Source: Enel Capital Markets Day – London, November 18th 2015
by geography by geography
by business by business
75% 70%
2019 EBITDA 1 1
9%
14%
77%
49%
22%
26%
3%
33
Total capex1
60%
’16-’19
28,5
40%
Maintenance
Growth
Capex composition and evolution (€bn)
Growth capex by area4
26%
9%
54%
11%
7.7 €bn
Rest of
World
Europe Latam
North
America
Renewables Networks Conventional
generation
East Europe
Latam
Iberia
Italy
5.8 €bn
Latam
Iberia
Italy
1.6 €bn 17 €bn2
1. Including Optional Capex 2. 3% of Retail and 1% of Other
3. Mainly North America and new countries (Asia and Africa) 4. Optional capex not included
Source: Enel Capital Markets Day – London, November 18th 2015
Renewables and networks investments as key-growth strategy
3
34
Industrial growth: operational targets upgrade1
Networks
End users (mn)
Retail Conventional generation
Renewables
Free Customer base (mn)
Total 2019 Capacity: 66 GW5 Total 2019 Capacity: 17 GW5
Smart meters (mn)
37
46
61 65
21,5 26,2
2014 2019 2014 2019
+2.1 GW additons
+2.5 mn customers
+22.6 TWh sold2
+21 mn 2nd generation
digital meters -0.1 GW additons
33%
18%
4%
18% 13%
14%
Coal
Oil & Gas
Hydro3 Renewables
Nuclear
CCGT
~83 GW4
31% 7%
5%
17%
18%
22%
Coal
Oil & Gas
Hydro4
Renewables
Nuclear
CCGT ~96 GW
2014 2019
52% Total renewables 38% Total renewables
Total Group capacity
1. Incremental data refers to 2015-19 period
2. In Italy
3. Including 0.9 GW additional capacity from optional capex
4. Including EGP Hydro operations
5. Net of disposals
+3.6 mn end users
+30 mn smart meters +4.7 mn new customers in power & gas free market
+9.2 GW3 additions +0.6 GW additions in Latam 0.4GW under construction at 2019
Source: Enel Capital Markets Day – London, November 18th 2015
Enel Business Development
USA
• Conv. Gen.
• Renewables
Colombia
• Conv. Gen.
• Renewables
• Networks
Peru
• Conv. Gen.
• Renewables
• Networks
Chile
• Conv. Gen.
• Renewables
• Networks
Zambia
• Renewables
Namibia
• Scout. Renewables
Botswana
• Scout. Renewables
South Africa
• Conv. Gen.
• Renewables
Kenya
• Renewables
Tanzania
• Scouting Conv.
Gen. &
Renewables
Uganda
• Scouting
Renewables
Brazil
• Conv. Gen.
• Renewables
• Networks
Uruguay
• Renewables
Egypt
• Renewables
• Conv. Gen
Tunisia
• Scouting
Renewables
Morocco
• Conv. Gen.
• Renewables
• Networks
UAE
• Scouting
Renewables
Oman
• Scouting Conv.
Gen.
Saudi Arabia
• Scout. Con. Gen.
• Networks
RUSSIA
• Conv. Gen.
AUSTRALIA
• Scout. Conv. Gen.
• Scout. Renewables
INDIA.
• Renewables
• Networks
VIETNAM
• Scout. Renewables
INDONESIA
• Conv. Gen.
• Scout. Renewables
MYANMAR
• Scout. Conv. Gen.
Italy
• Conv. Gen.
• Renewables
• Networks
Spain
• Conv. Gen.
• Renewables
• Networks
Turkey
• Renewables
• Networks
Sweden
• Scouting
Renewables
Finland
• Scouting
Renewables &
Networks
Germany
• Renewables
Luxemburg
• Scouting
Networks
As of February 2016
Country of presence
Business Development activities ongoing
Mexico
• Conv. Gen.
• Renewables
Guatemala
• Renewables
• Networks
Panama
• Renewabless
Global economic scenario evolution and industrial takeaways
36
Non-Oecd energy demand will
keep growing
Oecd the IT will lead the energy
transition
Lower and lower dependence
on fossil fuels
From 40% of coal, gas and oil
of energy mix in 2014
to 23% in 2019
Current volatility
as new normality
An increasing optionality based on
project size and diversification Average size of 150MW
across 7 countries
66% of the growth capex are
among Latam and other
emerging countries
Although in evolution, LatAm still
characterized by commodity
dependence
ELECTRICITY
DEMAND
ECONOMICS
COMMODITY
Deep revision of conventional
generation pipeline
Shorter time to EBITDA and
lower capex in conventional
generation power plants
New sustainable targets towards
a carbon neutrality ENVIRONMENT
Renewables & networks
Smart investments at
high IT content
Strategic
considerations
Industrial
actions Macro
context
Back up
02/03/2016 Presentation footer 10PT grey. Please add the relevant country to the footer. 37
Contact us
Andrea Valcalda ([email protected])
Visit our website at:
www.enel.com
Claudio Dicembrino ([email protected])
Linda Lucinio ([email protected])