Enel: 13 billion euro investments (+27.5%) in 2021 to accelerate the energy transition, dividend at 0.38 euro per share (+6.1%)

Main consolidated economic and financial data

·       Revenues: 88,006 million euros (66,004[1] million euros in 2020, +33.3%)

-         The positive change is attributable to all Business Lines, mainly due to the higher volumes of electricity produced and sold. The change also reflects the gain realized from the sale of the stake held in Open Fiber S.p.A. These effects were partially offset by the negative trend of exchange rates, mainly in Latin America

·       Ordinary EBITDA: 19,210 million euros (18,027[2] million euros in 2020, +6.6%)

-         The increase is mainly attributable to Enel Green Power, for its operational growth due to higher production and the commissioning of new renewable plants; to Infrastructure and Networks, thanks to the increasing margin in Latin America alongside better performances associated with improved service quality and network digitalization in Europe; as well as to the aforementioned gain realized on the sale of Open Fiber S.p.A. These effects more than offset the lower margins of Thermal Generation and Trading connected to the price effect on hedging activities, certain tariff adjustments in Italy and Spain, as well as unfavorable exchange rate trends mainly in Latin America

·       EBITDA: 17,567 million euros (16,903² million euros in 2020, +3.9%)

·       EBIT: 7,680 million euros (8,455² million euros in 2020, -9.2%)

-         the change mainly reflects higher depreciation and amortization recorded for the investments made and the value adjustments recorded during the year compared to the previous year, the effects of which were only partially offset by the trend in operations

·       Group net ordinary income: 5,593 million euros (5,197 million euros in 2020, +7.6%)

-         the increase is attributable to the positive performance of ordinary operations and the lower impact of non-controlling interests, which more than offset the higher taxes recorded mainly due to the tax reforms in Argentina and Colombia

·       Group net income: 3,189 million euros (2,610 million euros in 2020, +22.2%)

·       Net financial debt: 51,952 million euros (45,415 million euros in 2020, +14.4%)

-         the rise is mainly due to capital expenditure for the period, the acquisition of an additional stake in Enel Américas and the adverse exchange rate effect. The positive cash flow generated by operations, the issuance of a non-convertible subordinated perpetual hybrid bond and the sale of the stake held in Open Fiber S.p.A., partially offset the financial needs associated with the abovementioned events

·       Capital expenditure: 12,997 million euros (10,197 million euros in 2020, +27.5%)

-         the increase is mainly attributable to growth in capital expenditure in Infrastructure and Networks, Enel Green Power, End-User Markets and Enel X

·       The total dividend proposed for the entire financial year 2021 is 0.38 euros per share (of which 0.19 euros per share was already paid as an interim payment in January 2022), a 6.1% increase on the total dividend of 0.358 euros per share recognized for the full 2020 financial year

2021 results and objectives of the Group’s strategic plan

Strategic objectives for 2021 achieved

·       Ordinary EBITDA at the higher end of the Group’s guidance up by 7% compared to the 2020 result;

·       Progress in the decarbonization process, with new renewable capacity built in 2021 exceeding 5.1 GW, including for the first time 220 MW of batteries, coupled with the progressive replacement of conventional generation plants with a reduction of 2 GW of coal-fired capacity;

·       Progress on the Group’s simplification process through the increase of Enel’s stake, up to 82.3%, in the share capital of Enel Américas;

·       Proposed total dividend for 2021 is 0.38 euros per share, 6.1% higher than the dividend paid in 2020.

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Francesco Starace, Enel Group CEO, stated: “Enel's results for 2021 once again demonstrate the resilience and sustainability of our business model even in an increasingly complex scenario, characterized on the one hand by signs of post-pandemic recovery and on the other by the negative impacts of increasing fossil fuel prices. It is now clear that utilities have a key role in managing the rapid changes in the energy sector, and this is the direction in which our strategy is heading, focusing on decarbonization and electrification. In this way, we can seize opportunities along the entire value chain and at the same time contribute to energy independence in the countries where we operate. It is therefore key to accelerate investment in renewables, which provide a stable, secure and competitive source of energy and, together with the digitalization of networks and electrification of consumption, represent the solution to combat climate change. The validity of our strategy allows us to maintain our commitment to distribute a growing dividend to shareholders, based on a simple and transparent policy.”

[1] The 2020 figure has been adjusted, for comparative purposes only, to take into account the effects of the differing classification resulting from the measurement at fair value, at the end of the period, of outstanding contracts for the purchase and sale of commodities settled by physical delivery; this different classification did not have any effect on EBIT.

Moreover, for comparative purposes only, a reclassification from financial income to revenues was made, for an amount of 87 million euros, of the component recognized in the income statement related to the remeasurement at fair value of financial assets related to service in concession of distribution activities in Brazil falling within the scope of IFRIC 12. This last classification had an effect of the same amount on EBIT.

[2] For comparative purposes only, the figure for 2020 has been adjusted due to the different classification mentioned above concerning the application of IFRIC 12 in Brazil.