The new plan introduces digitisation and customer focus to the strategic pillars presented last year. Francesco Starace: "we are solid and ready to seize new opportunities".
Renewing the energy sector by applying digital innovations to all aspects of production, distribution and sales, in order to provide customers with excellence and cutting-edge services. In short this is the Enel Group 2017- 2019 Strategic Plan, presented yesterday in London to the financial community at Capital Markets Day.
"At the beginning of 2015 we presented our transformation strategy, and during the same time last year, we updated it in order to accelerate the process of achieving its goals. Since then we have exceeded the targets we set for our company and can now carry on implementing our strategy, one year ahead of schedule. Thanks to the thrust of the sustainable business model that we created and that is paying off, Enel now has a more focused, efficient and profitable organisation," said the CEO and general manager Francesco Starace.
Since last year’s presentation, the Group achieved in advance the results provided for by each of the basic pillars of the strategy:
- Operational efficiency, with a cash cost reduction of 10% in nominal terms compared to 2014
- Industrial growth,on track to achieve 2016 growth EBITDA target and already addressed 90% of 2017 growth EBITDA.
- Active portfolio management, thanks to disposals for 4 billion euros in less than two years
- Shareholder remuneration, confirming the company’s commitment to ensuring an attractive and growing dividend
Having achieved in advance of the strategic plan, the Group was able to confirm and even slightly improve guidance in terms of ordinary EBITDA for 2016, despite a more challenging context than the one foreseen in the previous plan.
These results were made possible, said Starace, "by the thrust of the sustainable business model that we have created and which is paying off: Enel is now equipped with a more focused, efficient and profitable organisation. Today we add digitisation and customer care as drivers to create additional value through the fundamental principles of that strategy."
"Enel is a geographically and technologically diversified company, capable of opening up to new opportunities," the CEO said, describing the Group’s new identity and global vision. "In the last year we changed our logo, aligning the company's image to changes made internally, to represent the role we want to play as energy industry pioneers: a modern company that is flexible and projected into the future." With this in mind, Enel is continuing its global Group rebranding and renaming plan, aimed at increasing consistency, focus on business and the efficiency of the subsidiaries.
The 2017-2019 Strategic Plan update is a 4.7 billion euro investment for the digitisation of the Group's assets, operations and processes and enhanced connectivity to generate value through efficiency and growth.
In addition, in the field of services, there will be a growth of electronic billing and internet of things platforms. Digitisation will improve customer services as we focus firmly on innovative services and opportunities created by the rise of electric mobility. In order to achieve the target, the market divisions in the various Countries are homogenising their IT platforms worldwide and are digitising their backup procedures, improving operational efficiency and user profiling, thus delivering offers and services tailored to the real needs of customers.
Alongside digitisation, the 2017-2019 Strategic Plan includes the United Nations Sustainable Development Goals (SDGs), regarding which we have made specific commitments in the field of access to education and clean energy, the dignity of work, the creation of value for the communities and fighting climate change. Regarding the latter, the Strategic Plan update foresees the overtaking of renewable generation; by 2019 the Group’s renewable capacity will be 45.7 GW, while the thermal one will be limited to 36.5 GW. Today 46% of Enel’s generation is zero emissions, and this figure will rise to 56% in 2019.