Enel S p A : , in first quarter 2021 investments up 8.8% and yearly targets confirmed

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ENEL, IN FIRST QUARTER 2021 INVESTMENTS UP 8.8% AND YEARLY TARGETS CONFIRMED

• Revenues: 17,107 million euros (19,985 million euros in the first quarter of 2020, -14.4%)
• • the change is mainly attributable to Thermal Generation and Trading activities in Italy and Spain, due to lower trading activities, to Infrastructure and Networks activities, mainly in Latin America due to adverse exchange rate effects, and to End-User Markets due to decreasing volumes of electricity sold in Spain
• Ordinary EBITDA: 4,159 million euros (4,741 million euros in the first quarter of 2020, -12.3%)
• • decrease mainly due to the impacts recognized in Spain in the first quarter of 2020, following the change in the energy discount benefit, mainly in Thermal Generation and Trading and Infrastructure and Networks, as well as due to the adverse exchange rate effects in Latin America
• EBITDA: 4,091 million euros (4,708 million euros in the first quarter of 2020, -13.1%)
• EBIT: 2,525 million euros (3,109 million euros in the first quarter of 2020, -18.8%)
• • the change mainly reflects the operating performance, partially offset by lower depreciation and amortization recorded in the first quarter of 2021 as a result of write-downs of certain coal-fired plants carried out during 2019 and 2020 as part of the decarbonization process
• Group net ordinary income: 1,214 million euros (1,281 million euros in the first quarter of 2020, - 5.2%)
• • the change in ordinary operating income was partially offset by lower net financial expenses and by a reduction in non-controlling interests
• Group net income: 1,176 million euros (1,247 million euros in the first quarter of 2020, -5.7%)
• Net financial debt: 45,884 million euros (45,415 million euros at the end of 2020, +1.0%)
• • increasing mainly due to the investments carried out during the period and adverse exchange rate effects, partly offset by positive cash flow generated by operations
• Capital expenditure: 2,035 million euros (1,870 million euros in the first quarter of 2020, +8.8%)
• • the increase is mainly attributable to growth in capital expenditure in Enel Green Power, in Infrastructure and Networks and in End-User Markets

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Enel SpA - Registered Office: 00198 Rome - Italy - Viale Regina Margherita 137 - Companies Register of Rome and Tax I.D. 00811720580 - R.E.A. 756032 - VAT Code 15844561009 - Stock Capital Euro 10,166,679,946 fully paid-in.

Francesco Starace, Enel Group CEO, commented: "In the first quarter of 2021, we significantly increased our investments, mainly in renewables and grids, in order to further accelerate the Group's decarbonization process and seize the opportunities that will emerge from the economic recovery. These investments will allow us to accelerate growth, in a context of ever increasing decarbonization, projecting us towards a new record in renewable capacity construction at year-end. In light of the financial and operating results achieved in the first quarter, we confirm our growth targets for 2021 in terms of ordinary EBITDA and net ordinary income, as announced in November last year during the presentation of the Strategic Plan."

Rome, May 6th, 2021 - The Board of Directors of Enel S.p.A. ("Enel" or the "Company"), chaired by Michele Crisostomo, examined and approved the interim report at March 31st, 2021.

Consolidated economic and financial data for the first quarter of 2021

REVENUES

The following table reports revenues by Business Line:

Revenues (MILLIONS OF EUROS)	Q1 2021	Q1 2020	Change
Thermal Generation and Trading	5,705	8,574	-33.5%
Enel Green Power	1,955	1,819	7.5%
Infrastructure and Networks	4,616	4,962	-7.0%
End-User Markets	8,256	8,361	-1.3%
Enel X	291	223	30.5%
Services	408	395	3.3%
Other, eliminations and	(4,124)	(4,349)	5.2%
adjustments
TOTAL	17,107	19,985	-14.4%

The following table shows detailed information from Thermal Generation and Trading solely relating to revenues from thermal and nuclear generation:

Revenues (MILLIONS OF EUROS)	Q1 2021	Q1 2020	Change
Revenues from thermal generation	1,928	1,986	-2.9%
of which: coal-fired generation	385	451	-14.6%
Revenues from nuclear generation	463	363	27.6%

	Revenues from thermal generation as a percentage of total revenues	11.3%		9.9%
	of which: revenues from	coal-fired generation as a	2.3%		2.3%
	percentage of total revenues

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Percentage of revenues from nuclear generation as a percentage of

total revenues

2.7% 1.8%

• Revenues in the first quarter of 2021 amounted to 17,107 million euros, a decline of 2,878 million euros (-14.4%) compared with the same period in 2020. The change is mainly due to: (i) lower revenues from Thermal Generation and Trading in Italy and Spain due to lower trading activities on commodities from contracts with physical delivery, as a result of the effect of the reduction of traded volumes and prices applied; (ii) lower revenues from Infrastructure and Networks, especially in Latin America due to the adverse exchange rate developments; (iii) lower revenues in the End-UserMarkets mainly due to the reduction in volumes of energy sold in Spain caused by effects linked to weather conditions.
  Within Thermal Generation and Trading, revenues in the first quarter of 2021 from thermal generation alone amounted to 1,928 million euros, a decrease of 58 million euros (-2.9%) compared to the same period in 2020. The change is primarily attributable to the results from commodity and energy management activities. Revenues attributable to coal-fired generation activities in the first quarter of 2021 stand at 2.3% of total revenues, in line with the same period in 2020.
• Revenues in the first quarter of 2021 and in the corresponding period of 2020, do not include non-ordinary items.

ORDINARY EBITDA and EBITDA

The following table reports ordinary EBITDA by Business Line:

Ordinary EBITDA (MILLIONS OF EUROS)	Q1 2021	Q1 2020	Change
Thermal Generation and Trading	442	695	-36.4%
Enel Green Power	1,054	1,139	-7.5%
Infrastructure and Networks	1,733	1,958	-11.5%
End-User Markets	912	941	-3.1%
Enel X	41	8	-
Services	20	29	-31.0%
Other, eliminations and adjustments	(43)	(29)	-48.3%
TOTAL	4,159	4,741	-12.3%

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The following table reports EBITDA by Business Line:

EBITDA (MILLIONS OF EUROS)	Q1 2021	Q1 2020	Change
Thermal Generation and Trading	425	692	-38.6%
Enel Green Power	1,052	1,138	-7.6%
Infrastructure and Networks	1,694	1,945	-12.9%
End-User Markets	908	933	-2.7%
Enel X	41	7	-
Services	15	23	-34.8%
Other, eliminations and	(44)	(30)	-46.7%
adjustments
TOTAL	4,091	4,708	-13.1%

The following tables show the non-ordinary items leading first quarter 2021 and first quarter 2020 ordinary EBITDA to EBITDA for the same periods:

Millions of euros					Q1 2021
	Thermal			Infrastructure				Other,
	Enel Green		End-User			eliminations
	Generation		and	Enel X	Services	Total
	Power		Markets	and
	and Trading		Networks
						adjustments
Ordinary EBITDA	442	1,054	1,733	912	41	20	(43)	4,159
Restructuring plans
for energy	(2)	-	(32)	(4)	-	(3)	(1)	(42)
transition and
digitalization
Other impairments	(13)	-	-	-	-	-	-	(13)
Costs related to	(2)	(2)	(7)	-	-	(2)	-	(13)
COVID-19
EBITDA	425	1,052	1,694	908	41	15	(44)	4,091
Millions of euros					Q1 2020
	Thermal		Infrastructure				Other,
	Enel Green	End-User			eliminations
	Generation		and	Enel X	Services	Total
	Power		Markets	and
	and Trading		Networks
						adjustments
Ordinary	695	1,139	1,958	941	8	29	(29)	4,741
EBITDA
Costs related to	(3)	(1)	(13)	(8)	(1)	(6)	(1)	(33)
Covid-19
EBITDA	692	1,138	1,945	933	7	23	(30)	4,708
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Ordinary EBITDA in the first quarter of 2021 amounted to 4,159 million euros, a decrease of 582 million euros (-12.3%) compared with the same period in 2020.The change is mainly attributable to:

• the decrease in Thermal Generation and Trading activities, amounting to 253 million euros (i) mainly in Spain, due to the positive effect recognized in the first quarter of 2020 and associated to the change in the energy discount benefit, as a result of the "5th Endesa Collective Bargaining Agreement", net of the provision for indemnities related to the voluntary early termination of the employment relationship and the reduction in the margin of commodity trading activities; these effects were partially offset by the indemnification of CO2 emission rights assigned for free by the National Plan of Emissions Rights Allocations (PNA, Plan Nacional de Asignación de Derechos de Emisión); (ii) for the reduction in the margin in Italy caused by commodity price trends; and (iii) due to the adverse exchange rate developments in Latin America;
• the negative change in Infrastructure and Networks, amounting to 225 million euros, mainly as a result of: (i) the aforementioned negative impact in Spain deriving from the modification, in the first quarter of 2020, of the energy discount benefit, net of provisions for voluntary termination incentive plans recognized in the same period; (ii) the decrease in margin in Latin America due to adverse exchange rate developments. These negative impacts more than offset the increase in margins in Spain, due to greater volumes of energy transported and in Italy, mainly due to the increase in revenues from electricity transport following the adjustment of tariffs for 2021;
• the decrease in Enel Green Power, amounting to 85 million euros, mainly as a result of: (i) the reduction in the operating margin in Latin America due to the higher energy purchases on the market as a result of the lower volumes of energy produced; (ii) adverse exchange rate developments mainly in Latin America; (iii) the lower margin in North America, mainly due to the adverse weather conditions in Texas that resulted in a net negative adjustment, for the first quarter of 2021, of energy sales contracts. These negative effects more than offset better margins resulting from the increase in production from renewable sources, primarily in Italy and Spain;
• the reduction in the End-UserMarkets margin, amounting to 29 million euros, mainly associated with the decrease in Spain of energy sold and prices and the effect recorded during the first quarter of 2020, of the aforementioned "5th Collective Bargaining Agreement" of Endesa. These effects more than offset the increase of the margin in Italy in the free market, substantially due to higher energy sales.

Finally, Enel X reported a positive change of 33 million euros, especially in Italy and North America, reflecting an increase in revenues due, respectively, to commercial initiatives and demand-response activities.

EBIT

The following table reports EBIT by Business Line:

EBIT (MILLIONS OF EUROS)	Q1 2021	Q2 2020	Change
Thermal Generation and Trading	202	475	-57.5%
Enel Green Power	742	826	-10.2%
Infrastructure and Networks	1,039	1,263	-17.7%
End-User Markets	623	627	-0.6%
Enel X	1	(26)	-

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