Enel presents the 2017-2019 Strategic Plan in London, focusing on digital innovation and customer care. Starace: “Growth opportunities for Italy resulting from regulated market liberalisation and e-mobility development”
Electric grids and much more. Digitisation will be Enel’s key instrument in its management of both traditional and renewable energy infrastructures, in the optimisation of its maintenance processes, its product and service diversification in the market, and in increasing the quality of its services to customers.
Customer care and digitisation are the fundamental principles of development in the Group’s 2017-2019 Strategic Plan. The plan – which outlines the company’s reorganization starting from 2014 – was presented to the London financial community on Tuesday, November 22, by Enel CEO Francesco Starace with CFO Alberto De Paoli and the team of directors from the Global Business Line (Livio Gallo, Infrastructure and Networks; Francesco Venturini, Renewables; Enrico Viale, Generation, and Claudio Machetti, Trading), and the Country divisions (Carlo Tamburi, Italy; José Damián Bogas Gálvez, Iberia; Luca D'Agnese, Latin America).
Over the course of 2016, Starace highlighted, the power company has reached and exceeded the main objectives set by the Strategic Plan a year ago, in terms of the four key pillars that had been outlined: operational efficiency, with a cash cost reduction of 10% in nominal terms compared to 2014; industrial growth, with an EBITDA growth target for 2016 that is heading towards its achievement, while 90% of the 2017 target has already been achieved; active portfolio management, thanks to disposals for EUR 4 billion in less than two years (reaching its 2019 asset rotation objective of 6 billion before the set date); shareholder remuneration, confirming the commitment of ensuring an attractive and growing dividend (with an increased pay-out of 60% rather than 40%, and a dividend per share increased by approximately 30% compared to 2014).
These results were obtained through an “increasingly focused, efficient and profitable organisation,” Starace explained, one that “allows us to renew our approach. Today we add digitisation and customer care as drivers to create additional value through the fundamental principles of that strategy. A combination of these actions will support our earnings growth and cash generation, leading us to foresee an increased dividend and the possibility of a share buyback programme, while maintaining our strong growth trajectory”.
A 4.7 billion Euro global investment has been allocated for the digitisation of the Group’s networks and for production assets over the next three years, without neglecting key areas such as cyber-security.
For Italy – which is the most advanced country in terms of Enel’s smart grids and smart meters throughout the world – the integration of digitisation into its growth strategy allows us to offer value-added services, such as consumption monitoring and management through applications and digital devices, flexible rates and innovative services, starting from electric mobility – a sector in which the company embraces an open approach to development.
The installation of our state of the art smart meters is the central aspect of our digitisation process, since it offers a tool that creates a new relationship with end users. Digital platforms – highlighted Italy Director Carlo Tamburi – will offer the chance to improve the quality of interaction with customers and to introduce innovative services aimed at increasing energy efficiency and raising energy consumption awareness.
Our digital approach to the market will be key to dealing with the new market assets resulting from the elimination of market restrictions, set for 2019 and which will affect about 23 million users.