HIGH LEVEL DIALOGUE ON ASEAN ITALY ECONOMIC RELATIONS Second Edition Shangri-La Hotel, Singapore Wednesday, April 11 and Thursday, April 12, 2018 Enel Group

Group Overview Focus on Enel Green Power and Enel X

Gu-Yoon Chung Head of Business Development, Asia Pacific Enel Green Power Presentation Overview

 Introduction of Enel Group  Enel’s Internationalization and Business Development  Renewable Energy  A New Paradigm: Enel X

 Opportunities for Agriculture Enel Group Today’s snapshot and evolution since 2014

3 Enel’s organisation Simple and effective organization

Group CEO • Administration, Finance and Control • Human Resources and Organisation • Communications Innovation and Holding functions • Legal and Corporate Affairs Sustainability • European Affairs • Audit Global Procurement Global ICT

Global Global Global Global Infrastructure & Thermal Trading & Renewable E-Solutions Networks Generation Upstream Gas Energies Italy Global Business Lines

Iberia • Customers • Best practices implementation Europe & • Local stakeholders North Africa • Technology/Solutions • Regulation Latin America • Efficiencies in Capex & Opex • Revenues Geographies • Capital allocation North & • Cash flow Central America • EBITDA • EBITDA Sub-Saharan Africa & APAC 4 2017 financial results1

FY 2017 2016 Ordinary EBITDA breakdown

Revenues 74.6 €bn Italy Ordinary EBITDA 15.6 €bn 23% 43% Iberia 15.2 €bn€ Net ordinary income 3.7 €bn Europe and North Africa 5% Latin America Net debt 37.4 €bn 5% 24% North and Central America

1. Data as of December 31st 2017 5 Operational data Leadership along the various segments of the value chain

Key indicators1 Enel and European peers2

3 62 Infrastructure & Networks Customers 38 62 mn end users (mn) 35 41.2 mn smart meters 4 1.9 mn km grids 27 23 Retail 22 56.4 mn power customers 132 Installed 5.5 mn gas customers 83 capacity 70 (GW) 42 Renewables generation 45 35.9 GW of installed capacity5 9

1.9 Grid Length 1.3 (mn km) Thermal generation 1.0 46.8 GW of installed capacity 0.8 0.7 -

6 1. Data as of December 31st 2016; 2. Data as of December 31st 2016; 3. Retail Customer: Free + Regulated; 4. Figure refers to the European perimeter (Engie does not disclosure total number of customers); 5. It doesn’t include 1.9 GW of managed capacity Portfolio breakdown1

Production mix Installed capacity Distributed energy Customers (power + gas)

10% 13% 10% 4% 26% 20% 20%

23% 4% 261.8 82.7 GW 426.0 4% 61.9 mn TWh/year 28% 33% TWh/year 50% 52% 18% 18% 26% 11% 15% 15%

Nuclear Nuclear Italy Italy Coal Coal Iberia Iberia CCGT CCGT Oil + Gas Oil + Gas Europe & North Africa Europe & North Africa Hydro Hydro Other Renewables Other Renewables Latin America Latin America

7 1. Data as of 31st December 2016 Industrial Growth Plan 2018-2020 KPIs

8 Growth Capital Allocation 2018-2020

9 Enel Green Power Leading Company in Renewable Energy

10 Enel Green Power: sector leader Fastest growing renewable player vs. European peers

2016 GW added - net of disposals and excl. large hydro + 254 MW Hydro (Italy, Iberia, Brazil, Colombia); +970 MW Wind (Italy, Iberia, Chile, Mexico, USA, South Africa); +775 MW Solar 2,00 (Italy, Chile, Panama, USA, South Africa)

+ 584 MW Wind (UK, USA)

+ 750 MW Wind (Belgium, China, France, Portugal, South Africa, UK, USA); + 149 MW Solar PV (USA, Chile); +22 MW Other (USA, 0,92 France) 0,82

0,58 +821 MW wind (USA, Mexico, Brazil, Italy, France, Portugal)

0,29 0,34 + 211 MW Solar (Chile, France, India); +82 MW Wind (Brazil, Belgium)

ENEL Iberdrola EDF-EN EDP-R ENGIE Acciona + 246 MW Solar PV (Chile); + 96 MW Wind (USA, India)

Source: Enel Green Power Relazione finanziaria annuale 2016 (April 2017), Investor presentation 2017-19 strategic plan (March 2017) Iberdrola Renovables Results 2016 EDF energies nouvelles Bloomberg New Energy Finance EDP renováveis 2016 Results (February 28th,2017) 11 Engie Appendices FY 2016 Results (March 2nd 2017) Acciona FY 2016 January-December Results presentation (March 1st 2017) Enel Green Power Recent achievements (2015 - Present): 4,628 MW in two years!

Russia EGP awarded 291 MW Germany Wind tender Drilling exploration at new Spain USA EGP awarded 540 MW geothermal site (26 MW) Biggest EGP wind farm (400 Wind and 339 MW PV MW) under construction India In 2015 BLP acquisition. Competitive participation in recent 750 MW PV auction Mexico Morocco In 2016 1,000 MW PV awarded Indonesia EGP awarded 850 in a tender + 200 MW Wind EGP awarded concession to MW Wind tender explore and develop 55 MW geothermal Zambia Peru In 2016 Awarded 326 MW awarded in 3 technologies: 34 MW of PV PV, wind and hydro Brazil Australia Largest EGP solar plant (292 Acquired 275 MW of PV, the MW) under construction largest solar plant in the continent

12 Operational presence Advanced development Growth Enel Green Power Accelerating Growth

13 Enel Green Power Asia Pacific

Timeline of growth

2015: acquisition of BLP in India, marking entry in APAC. Capacity in operation of 172 MW wind.

2016: awarded concession to explore geothermal in Sumatra, Indonesia. Capacity of 55 MW.

2017: closing of Bungala solar project in Australia. Capacity of 275 MWp. 2018: won first tender in India, wind project in Gujarat. Capacity of 285 MW.

Countries with operations or construction 2018 and beyond: goal to expand capacity in India, Indonesia, Australia, and enter 14 Countries with development Vietnam and South Korea. Hydro Wind Solar Geo Biomass What are the next big things for the sector? Disruptive innovation will accelerate the transition towards a low carbon economy

From commodity to Storage Digitalization System Integration service

Utilities could own no networks Digitalization is creating New actors such as local E-cars are driving storage price or generation assets in the future opportunities for smaller players dispatchers and aggregators are tumbling at utility scale resulting in increasing emerging in the energy sector competition in the sector Margins are shrinking and utilities are looking for new sources of revenues + monitoring

new sectors to survive 23 Supply meet Demand? Demand meet Supply! The Case for Demand Response

16 Impact of “Grid edge technologies” The Case for Demand-side Services Electricity system built to cope with peak demand, and thus the have an average system utilization rate of 54-55% (in the US)

Daily load (GW)

Reduces Flattens peak Flattens demand valleys (if cars demand peaks and valleys charged at right times) Electric vehicles

Demand response

Reduces Distributed storage overall demand

Energy efficiency

Grid edge technologies could support peak demand reduction (through overall reduction and shifting/flattening) – a 10% decrease in peak demand equates to ~$80B of value in the US alone

Presented at World Economic Forum (January 2017 Davos Annual Meeting Session), Grid Edge Transformation Initiative (Presented by Francesco Starace, CEO of ENEL, and Jean-Pascal Tricoire, CEO of Schneider Electric)

Note: Average US asset utilization rate of 54-55% is from the EIA showing values for 2015 for coal and natural gas fired combined cycle plants; peak demand in the US is ~710,000 MWh (in late July 2016); EIA estimates $1,110 per kW for combined cycle natural gas plants installed in recent years; value creation is equivalent to savings from cost avoidance of building traditional peaking plants, savings on energy costs (~$40/MWh), and savings from avoided transmission costs; Source: EIA; Bain analysis Electric Vehicle Charging Infrastructure Deploying all charging technologies

Charging stations Vehicles

Electric Quick charging engine 3.7 kW AC - 22 kW AC Battery Quick charging Electric Vehicle 22 kW AC - 22 kW AC (BEV)

Fast charging 43 kW AC - 50 kW DC

Plug-in ICE Hybrid Electric Vehicle Ultra Fast charging (PHEV) 150 kW DC – 350 kW DC Electric engine

We have built a deployment plan for rollout of charging stations in Italy and our captive markets EV Battery Monetization

Aggregating Capacity… …to unlock flexibility …and provide services

EV Batteries Aggregation Platform Desired Target Load Curve 60

50 EVSE back-end Grid Regulation services 40 . Primary Frequency Regulation 30 kW . Demand Response V1G 20 Smart V2G Charging 10 Customer Assets Optimization 0 . Demand Charge Management 1 3 5 7 9 11 13 15 17 19 21 23 Hours / Minutes / Seconds . Grid Connection optimization

Customer Preferences . Renewables Plant integration

Aggregation capabilities will be key to monetize through unidirectional and bidirectional services while EV not used (90% of lifetime) V2G pilot project in Denmark and UK In pictures

20 Electricity sector is in transition From the old model…

Generation Transmission Distribution Retail Customer

A simple and linear model 21 Electricity sector is in transition …to a new energy market paradigm Actively manage the grid

Distribution

Engage with Link supply to Transmission Retail load customers

Bulk Become an active Focus on Customer partcipant baseload Generation New market Customer Distributed paradigm New Offer new becomes generation entrants products and producers services

Customers Demand Customers go or Micro grids become active response remain off-grid consumers

Storage

Storage used to 22 manage grids A new brand: Enel x

Our vision Our name

Create the new A name that builds on the trust and scale of Enel and signals power economy distinctiveness and a new vision

A new brand for a distinctive positioning on the market 23 A new Global Business Line Our portfolio of solutions in the 4 Global Product Lines

e-Industries e-Mobility e-Home e-City

Consulting and auditing Installation, maintenance Public charging network Smart lighting service and repair services

Distributed generation Automated home Fiber optic wholesale Private charging wall-box on/off site management network

Maintenance and other Distributed generation & Energy efficiency Financial services services energy services

Demand response and Vehicle 1 Grid Demand response and Home 2 Grid demand side management Vehicle 2 Grid demand side management

24 Addressing new customer needs with innovative technologies KPI target for 2020 Enel X

25 Megatrends affecting agricultural industry foster new opportunities for Utilities

Use of alternative sources of energy, Innovating including wind, solar, hydroelectricity, to zero and biomass for agriculture Smart agriculture market is expected to grow from $ 5,2 bln in 2016 to $11,2 bln by 2022, at a Electrification of consumption is CAGR of 13% between 2017 and uptaking many sectors, including 2022 Electrification agriculture. Electric vehicles for construction, agriculture and mining will be Enel can seize the opportunity to a $81 billion market in 2027 develop the first agricultural smart district, deploying its smart Increased connectivity, sensors, energy and smart tech capabilities machinery and control systems that aim Smart is the at increasing efficiency in agriculture, new green including machine-to-machine, human- machine interfaces, industrial robots and self-guided vehicles

26 Enel is the innovation partner of Bonifiche Ferraresi

WHO IS BONIFICHE FERRARESI ENEL’S ROLE

BF is the largest agricultural company in Italy (5.500 hectares of cultivated land) Enel signed an agreement to become Investment plan of € 32 mln to transform the Company in an agricultural pole Bonifiche Ferraresi’s of excellence at a European level for size, production capacity and quality offered Innovation Partner and support the company to set Leader in the use of innovative farming techniques, such as bioenergy and up the first agricultural precision agriculture smart district in Europe

27 Enel offers a turn key solution, including both breakthrough and other energy efficiency innovations

Vehicle 2 Grid

First Gridscale Storage Innovation Hub Installation by Tesla

Building automation Energy management Connectivity PV Drones Cogeneration

E-Mobility

28 Completed In progress Agricultural Smart District project with Bonifiche Ferraresi: the purpose and timeline

PURPOSE OF THE PARTNERSHIP Launch with Bonifiche Ferraresi (BF) the first agricultural smart district in Europe: . Flagship case of energy innovative technologies (investment by BF) . Develop a best in class use case in Italy to position Enel as leader in smart energy management and smart tech innovation, to deploy further initiatives abroad

OUTCOMES TIMELINE

June ‘16 October ‘16 December ‘16 Feb-March ’17 Apr-Nov ‘17 Dec’17 – today Agreement and Presentation of Projects Presentation Delivery, Evaluation of $10 launch of project concept approval by and signing of Installation and Mln opportunity working groups and feasibility BF’s board of Enel’s offerings Commissioning to electrify smart study directors agriculture

29 Enel’s smart kit is based on 5 tech pillars and has a value of 1 mln€

Leveraging on innovative projects to attract corporate customers on new services Projects under development at Bonifiche Ferraresi’s site

PV Storage V2G Smart E-mobility Innovation add ons Stables and rice mills 100 kW/190 kWh 1 charger + 1 eNV200 20 e-bikes + 5 EV (2 Mkt analysis for drones for covered with 700 kW PV integrated with PV Simulated comm. oper. Twizy, 1 Leaf, 2 precision agriculture covering BF consumption until regulation is ready eNV200), including 3 chargers Scouting in Tel Aviv - 10 startups identified, 1 to launch a pilot project

Other installations in pipeline to be approved by BF (phase 2)  Cogeneration  Local Connectivity  Electric Drones  En. Mngt. Platform  Building automation Biogas, CHP plants for devices, sensors and people for O&M inspections for local site energy Energy efficiency upgrades (Athonet) management

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