Enel (ENEL) CMD 2024 summary

Strategic pillars and business focus

• Emphasis on profitability, flexibility, and resilience, with a renewed focus on core activities and financial sustainability for 2025-27.

• Investments prioritized in grids and countries with high visibility and favorable risk-return profiles, especially in Europe and Latam.

• Selective capital allocation in renewables, focusing on core countries and streamlining the asset portfolio.

• Customer strategy centers on bundled offers and optimizing customer relations, with investments in the most valuable geographies.

• New business model for connection assets via a dedicated NewCo to unlock further value, especially for data centers.

Strategic direction and investment plans

• Launching a new 2025-2027 strategy focused on sustainable growth, value creation, and financial solidity, with total gross capex increasing to €43 billion, up €7 billion from the previous plan.

• Investments mainly to grids (€26 billion, +40% vs. prior plan), renewables (€12 billion, adding 12 GW), and customers (€2.7 billion), with 75% of capex in Europe and 25% in Latin and North America.

• Grid investments will boost the regulated asset base to €52 billion by 2027, with grids expected to contribute about 40% of Group Ordinary EBITDA.

• Renewables focus on onshore wind, hydro, and batteries, targeting 76 GW installed capacity and a 15%+ increase in production by 2027.

• Asset rotation and partnership models used to enhance financial flexibility and returns, as seen in recent Spain transactions.

Financial guidance and targets

• Ordinary EBITDA targeted at €24.1–24.5bn and net income at €7.1–7.5bn by 2027, with a 7% and 11% CAGR (2022–27) respectively.

• Net debt/EBITDA expected to decrease to 2.4x by 2027, supporting future growth and shareholder returns.

• Dividend policy raised to a minimum of €0.46/share for 2025–27, with up to 70% payout on net ordinary income.

• Cash-flow neutrality gate removed from the dividend policy, increasing predictability and flexibility for shareholder remuneration.

• Over 90% of EBITDA for 2025–27 to be contracted or regulated, providing high visibility on future delivery.