Enel: strong results in the nine months of 2023, with ordinary EBITDA at 16.4 billion euros (+29.3%) and net ordinary income at 5.0 billion euros (+65.2%), 2023 guidance upgraded

·       Revenues: 69,534 million euros (105,522 [1] million euros in the nine months of 2022, -34.1%)

­    The change primarily reflects a decrease in the volume of power generated at declining average sale prices in an environment characterized by greater price stability than in the nine months of 2022, as well as changes in the scope of consolidation between the two periods under review

·       Ordinary EBITDA: 16,386 million euros (12,671 million euros in the nine months of 2022, +29.3%)

­    The increase is attributable to the performance of the integrated business, which reflects the normalization of margins compared with the same period of 2022, together with the improvement in Enel Grids results

·       EBITDA: 15,220 million euros (12,327¹ million euros in the nine months of 2022, +23.5%)

·       EBIT: 9,835 million euros (6,067¹ million euros in the nine months of 2022, +62.1%)

­    The increase is attributable to the positive performance of operations, a reduction in impairment losses and a decline in writedowns of receivables compared with the same period of 2022, which more than offset an increase in amortization and depreciation in the nine months of 2023

·       Group net ordinary income: 5,033 million euros (3,046 [2] e [3] million euros in the nine months of 2022, +65.2%)

­    The increase reflects the positive performance of ordinary operations and a decrease in the impact of non-controlling interests on net ordinary income, which more than offset the rise in net financial expense caused by developments in interest rates and the growth in the average debt in the period, as well as the increase in the tax liability attributable to the improvement in performance

·       Group net income: 4,253 million euros (1,758 [4] million euros in the nine months of 2022, +141.9%)

·       Net financial debt: 63,312 million euros (60,068 million euros at the end of 2022, +5.4%)

­    The change mainly reflects the impact of positive cash flow generated by operations, the sale of a number of companies no longer considered strategic and the issue of non-convertible subordinated perpetual hybrid bonds, which only partly offset the funding requirements generated by capital expenditure during the period and the payment of dividends, alongside the adverse exchange rate developments

·       Capital expenditure: 8,759 million euros (9,309 million euros in the nine months of 2022, -5.9%)

­    The change is essentially attributable to differences in the scope of assets classified as held for sale compared with the nine months of 2022; net of these effects, capital expenditure would be substantially unchanged. Capital expenditure continued to focus on the development of distribution grids and renewable capacity

·       Approval of interim dividend for 2023 of 0.215 euros per share, in payment from January 24^th, 2024, an increase of 7.5% compared with the interim dividend distributed in January 2023

­    The Enel Board of Directors confirms the interim dividend policy for 2023, as provided for in the 2023-2025 Strategic Plan

­    A total dividend of 0.43 euros per share expected for 2023

·         In light of the solid operating performance recorded in the nine months of 2023, the guidance related to 2023, provided to the financial markets during the presentation of the 2023-2025 Strategic Plan, has been upgraded.

In particular, the Group expects:

­    Ordinary EBITDA between 21.5 and 22.5 billion euros, increasing from the previous target between 20.4 and 21.0 billion euros;

­    Group net ordinary income between 6.4 and 6.7 billion euros, increasing from the previous target between 6.1 and 6.3 billion euros.

Finally, the achievement of the 2023 Net Financial Debt/EBITDA target equal to 2.4x-2.5x is confirmed when considering a pro-forma net financial debt to also take into account the financial impacts from planned and non-finalized asset disposal transactions, the financial effects of which will be produced only following the completion of the usual authorization processes by relevant Authorities.

The possible differences compared to the net financial debt target for 2023 will be, therefore, solely attributable to the different timing of finalization of asset disposals compared with the 2023-2025 Strategic Plan estimates. The update of the net financial debt target for full year 2023 will be provided during the presentation of the new Strategic Plan, which is due on November 22^nd, 2023.

[1] The figures for the nine months of 2022 have been adjusted, for comparative purposes only, to take account of the classification under the item “Profit/(Loss) from discontinued operations” of profit/(loss) connected with the assets held in Russia (which were sold in 2022), Romania and Greece, as the requirements of IFRS 5 for their classification as “discontinued operations” have been met.

[2] For a more accurate representation, the taxes relating to ordinary items of the nine months of 2022 have been adjusted to take account of the extraordinary nature of the solidarity contribution recognized during the nine months of 2022 in the total amount of 69 million euros.

[3] The figures for the nine months of 2022 have been adjusted to take account of the effects of the Amendment of IAS 12, effective from January 1^st, 2023.

[4] The figures for the nine months of 2022 have been adjusted to take account of the effects of the Amendment of IAS 12, effective from January 1^st, 2023.