Enel, ordinary EBITDA at 19.7 billion euros and net ordinary income at 5.4 billion euros, exceeding Group guidance. Net debt in line with guidance and dividend up by 5.3% at 0.40 euros per share

Main consolidated economic and financial data

·       Revenues: 140,517 million euros (85,719[1] million euros in 2021, +63.9%)

-         The positive change is mainly attributable to higher volumes of energy produced, traded and sold in a context of rising average prices, as well as to favorable exchange rate developments

·       Ordinary EBITDA: 19,683 million euros (19,210 million euros in 2021, +2.5%), exceeding Group guidance communicated to financial markets of 19.0-19.6 billion euros

-      The increase is attributable to the positive performance of the integrated business, as a result of the combination of the Thermal Generation and Trading, Enel Green Power, End-User Markets and Enel X businesses, together with the positive performance of Enel Grids. It is also worth highlighting the favorable exchange rate developments

·       EBITDA: 19,918[2] million euros (17,233¹ million euros in 2021, +15.6%)

·       EBIT: 11,193 million euros (7,551¹ million euros in 2021, +48.2%)

-         The change mainly reflects the positive performance of operations and lower value adjustments recorded during the year compared to 2021, only partially offset by higher depreciation and amortization

·       Group net ordinary income: 5,391 million euros (5,593 million euros in 2021, -3.6%), exceeding Group guidance disclosed to financial markets of 5.0-5.3 billion euros

-         The improvement in business performance, partially offset by the increase in depreciation for the year, the more efficient financial management associated with the liability management activities of last year, and the lower tax charges on Group ordinary results partially offset the effects of the higher incidence of non-controlling interests due to the compression of results in Italy following the year’s peculiar energy scenario

·       Group net income: 1,682 million euros (3,189 million euros in 2021, -47.3%)

·      Net financial debt: 60,068 million euros (51,693[3] million euros in 2021, +16.2%)

-         In line with guidance. The increase is mainly due to investments in the period whose requirements were partially offset by the positive cash flow generated by operations, which was impacted by the effect on net working capital from a number of government measures, and by the positive effects of asset portfolio management

·       Capital expenditure: 14,347 million euros (12,997 million euros in 2021, +10.4%)

-         The increase is attributable to growth in capital expenditure in Enel Green Power, Enel Grids, End-User Markets and Enel X

·       The total dividend proposed for the entire financial year 2022 is 0.40 euros per share (of which 0.20 euros per share was already paid as an interim payment in January 2023), a 5.3% increase on the total dividend of 0.38 euros per share recognized for the full financial year 2021

2022 results and objectives of the Group’s strategic plan

Strategic objectives for 2022 achieved

·         Group ordinary EBITDA and net ordinary income exceeded Group guidance set in the 2023-2025 Strategic Plan presented to financial markets in November 2022;

·         Progress in the decarbonization process, with new renewable capacity built in 2022 exceeding 5.2 GW, including 387 MW of batteries;

·         Integrated business management which, despite the unfavorable market environment, guaranteed a result higher than expected;

·         Progress in the process of streamlining the business portfolio and geographical areas, through 5.9 billion euros of asset valorization;

·         Total dividend proposed for financial year 2022 of 0.40 euros per share, 5.3% higher than the dividend distributed in 2021.

*****

“Enel's excellent 2022 results underscore the Group's ability to create value for its stakeholders, notwithstanding the highly challenging scenario that has characterized the last three years,” commented Enel CEO and General Manager Francesco Starace. “Thanks to the resilience of our integrated business model, our solid operating performance, the managerial actions implemented during the year, and above all the tireless work of all our colleagues, we have been able to exceed the guidance announced to the markets. Based on these results, we are offering our shareholders a dividend of 0.40 euros per share, an increase on last year.

In the coming months, we will continue to grow in renewables and digitize distribution networks, helping to decarbonize the generation mix and enhance energy independence in the geographies where we operate, improving service quality, enabling the electrification of end uses and protecting our customers from the volatility of energy markets. We will focus investments mainly in Italy and in the other core countries, in order to accelerate the Group’s sustainable growth pathway, further reducing its risk profile.”

[1] The figures for the financial year 2021 have been adjusted, for comparative purposes only, to take into account the classification under “Net income from discontinued operations” of the results relating to assets held in Russia (sold during the fourth quarter of 2022), Romania and Greece, given that the requirements of IFRS 5 for their classification as “discontinued operations” have been met.

[2] The press release on the Group's 2022 preliminary consolidated results, published on February 9^th, 2023, reported an EBITDA of 18.8 billion euros. The difference compared to the current amount is attributable to a more accurate representation of the result of discontinued operations in the specific figure of the income statement. The reclassification had no impact on Group net income.

[3] In order to improve the reporting of net financial debt, so as to take account of exchange risk hedging, in its determination the Group has decided to include the fair value of the cash flow hedge and fair value hedge derivatives used to hedge the exchange rate risk on loans. Accordingly, in order to improve the comparability of figures, it was necessary to recalculate net financial debt at December 31^st, 2021.