Enel, the road to 2030 in the 2022–2024 Strategic Plan: powering investments towards zero emissions with focus on the electrification of customer energy demand

  • The Enel Group Plan focuses on four strategic lines:

(i)            allocating capital to support a decarbonized electricity supply;

(ii)           enabling electrification of customer energy demand;

(iii)          leveraging full value chain’s value creation;

(iv)          bringing forward Sustainable Net Zero.

  • The Group expects to mobilize total investments of 210 billion euros between 2021 and 2030, of which 170 billion euros directly invested by the Enel Group (+6% on the previous Plan) and 40 billion euros catalyzed through third parties.
  • Between 2020 and 2030, Group Ordinary EBITDA is expected to increase at a 5%-6% Compounded Annual Growth Rate (“CAGR”) while Group Net Ordinary Income is expected to increase at a 6%-7% CAGR.
  • The Group brings forward its Net Zero commitment by 10 years, from 2050 to 2040, both for direct and indirect emissions.
  • The value created by the Group for customers is expected to bring an up to 40% reduction in their energy spending, alongside an up to 80% reduction of their CO2 footprint[1] by 2030.
  • In 2024, Group Ordinary EBITDA is expected to reach 21.0-21.6 billion euros, compared to 18.7-19.3 billion euros estimated in 2021. Group Net Ordinary Income is expected to increase to 6.7-6.9 billion euros in 2024, compared to 5.4-5.6 billion euros estimated in 2021.
  • Enel’s dividend policy for the period remains simple, predictable and attractive. Shareholders are expected to receive a fixed Dividend Per Share (“DPS”) that is planned to increase by 13%, up to 0.43 euros/share, between 2021 and 2024.
  • The planned growth in earnings, coupled with the underlying Dividend Yield[2], is expected to translate into a 2022-2024 Total Return of around 13%.

 

Financial Targets

 

 

 

 

 Earnings growth

2021E

2022

2023

2024

Ordinary EBITDA (€bn)

18.7-19.3

19.0-19.6

20.0-20.6

21.0-21.6

Net ordinary income (€bn)

5.4-5.6

5.6-5.8

6.1-6.3

6.7-6.9

Value creation

 

 

 

 

Fixed DPS (€/share)

0.38

0.40

0.43

0.43

Implied Dividend Yield2

5.4%

5.7%

6.1%

6.1%

 

Francesco Starace, CEO and General Manager of Enel said: “This year’s Plan, with 170 billion euros of direct investments by 2030, is a pivotal one. Its implementation is enabling us to step up from the previous Decade of Renewable Energy Discovery, to the current Decade of Electrification. We are accelerating growth across the business, bringing value to our customers who are at the core of the Group’s Strategy, a value which translates into a projected reduction in their energy spending, while increasing their electricity demand by 2030. Furthermore, we are bringing forward the Group’s full decarbonization target by ten years, reaching Net Zero by 2040. We will continue to grow in renewables, leveraging on what is already the world’s leading private renewable asset base. The Infrastructure and Networks as well as the newly-launched Global Customers business line will allow us to seize the incredible opportunities that electrification has to offer. The pioneering work carried out by all Enel colleagues and the advanced digital transformation of the Group will allow us to address the evolution of customer needs during this decade.”

 

[1] Reduction in energy spending and CO2 footprint calculated versus 2020 based on Enel’s portfolio of clients in Italy and Spain.

[2] Calculated on the basis of an Enel share price of 7 euros.

CMD 2021 Press release

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