OPEN POWER FOR A BRIGHTER FUTURE. WE EMPOWER SUSTAINABLE PROGRESS. REPORT AND FINANCIAL STATEMENTS OF ENEL SPA AT DECEMBER 31, 2020 OPEN POWER FOR A BRIGHTER FUTURE. OOPEN REPORT AND FINANCIAL STATEMENTS OF ENEL SPA AT DECEMBER 31, 2020 ENEL IS OPEN POWER Open Power VI to tackle some SI of the world’s ON biggest challenges. POS ITI PUR ON ING PO Open Power SE > Open access to electricity for more people. MI > Open the world of energy to new tecnology. > Open up to new uses of energy. SSI > Open up to new ways of managing energy for people. ON > Open up to new partnerships. > Make desitions in daily activities PRI and take responsability for them. > Share information, being willing to collaborate NCI and open to the contribution of others. PLES > Follow trough with commitments, pursuing OF activities with determination and passion. > Change priorities rapidly if the situation evolves. CO > Get results by aiming for excellence. NDU > Adopt and promote safe behavior and move pro-actively to improve conditions for health, CT safety and well-being. > Work for the integration of all, recognizing and leveraging individual diversity (culture, gender, age, disabilities, personality etc.). Open power > Work focusing on satisfying customers for a brighter and/or co-workers, acting affectively and rapidly. future. > Propose new solution and do not give up when faced with obstacles or failure. We empower > Recognize merit in co-workers and give sustainable feedback that can improve their contribution. progress. > Trust VA > Proactivity LU > Responsibility ES > Innovation Report and financial statements of Enel SpA at December 31, 2020 Michele Francesco Crisostomo Starace Chairman of the Chief Executive Officer Board of Directors and General Manager Letter to shareholders and other stakeholders 4 Dear shareholders and stakeholders, Our sustainable and fully integrated business model has enabled allowed us to maximize END USERS shared value with all our stakeholders, even during a year characterized by the global re- 74 cession triggered by the COVID-19 pandemic, confirming our leading role in the energy million transition. We are the largest private renewable energy operator in the world, with 49 GW of managed MANAGED capacity, and the largest private electricity distribution company globally, with 74 million RENEWABLES CAPACITY end users connected to the world’s most advanced digitalized grids. We manage the larg- est customer base in the world among private companies, with approximately 70 million 49 GW customers. Our strategy of basing all our business on digital platforms, together with industrial leader- ship, allows us to optimally seize opportunities arising from the energy transition now under way around the globe. Our solid financial and sustainability performance in recent years have enhanced investor confidence in us. This is demon- strated by the 17% increase in the Enel stock price during the year, outperforming both the sector index (EURO STOXX Utilities: +10%) and the general Italian index (FTSE-MIB: -5%). Enel’s leadership in sustainability is also confirmed worldwide by the Group’s presence in a number of important sustainability ratings, indices and rankings, including the AAA rating from MSCI and confirmation of our presence in the MSCI ESG Leaders Index, the Dow Jones World and Europe sustainability indices, the CDP Climate “A” List, the Vigeo Eiris rating in which the Group is ranked first in all sectors and the Euronext Vigeo Eiris 120 index, the ESG rating of Refinitiv and the FTSE4Good index, being the sector leader in both cases. Enel is also present in the three main indices that monitor corporate gender diversity performance: Bloomberg Gender Equality Index, Refinitiv Top 100 Diversity and Inclusion Index, and Equileap Gender Equality Top 100 ranking. In 2020 we confirmed ourselves as the leading European utility by market capitalization and the second in the world. The macroeconomic environment The global economic environment in 2020 was characterized by an unprecedented recession, caused by the COVID-19 pan- demic. The health crisis and the resulting restrictions have had a negative impact on supply and demand, leading to a con- traction in world GDP estimated at around 3.7% in 2020. The waves of the pandemic had a strong impact on the euro area, with GDP contracting by about 6.8% during the year, and on the United States, where the contraction in GDP was 3.5%. In response to the recession, the European Central Bank has pursued an expansionary monetary policy, keeping its main in- terest rates at very low levels through the Pandemic Emergency Purchase Program. For its part, the European Commission is using the Next Generation EU program to channel €750 billion, divided into loans and subsidies, to the Member States. The US government has also adopted major expansionary fiscal policies to support families and firms, and the Fed has imple- mented an unlimited public and private debt purchase program. In Latin America, economic developments were highly influenced by the pandemic and the consequent responses of the individual countries, which varied considerably and in some cases exacerbated existing structural problems. The Chilean economy was among the most resilient thanks to its considerable openness, with exports driven by the Chinese recovery (GDP -6.1%), while in Brazil economic activity in 2020 was supported by a broad fiscal stimulus program in support of families (GDP -4.4%). During 2020, the oil market was characterized by sharp volatility, with oil prices collapsing during the 1st Quarter due to weak demand, followed by a sharp rise in the 2nd Half of the year thanks to the reopening of the main world economies. The gas market also experienced by strong volatility during 2020. During the 1st Half of the year, the benchmarks of all the main European hubs contracted by almost 50% compared with the same period of 2019, while prices in the last quarter re- turned to the average levels seen in 2019. The price of CO2 displayed excellent resilience. Recent statements by the European Commission about the central role of the ETS in achieving decarbonization and climate neutrality goals have supported the market, leaving prices on a gradually rising path towards long-term equilibrium. Report and financial statements of Enel SpA at December 31, 2020 Performance Performance achieved in 2020, which was also the fruit of our business model, based on the central role of digitalization and platforms, key tools in dealing with the pandemic emergency, underscored the resilience of the Group from both an opera- tional and financial point of view. Despite the economic crisis, the Group continued its growth path by continuing to generate value. The 2020 financial year closed with ordinary EBITDA of €17.9 billion, in line with last year’s results. Ordinary net income, on which the dividend is calculated, reached €5.2 billion, up 9% compared with the previous year. The dividend for 2020 amounts to about €0.36 per share, up 8% compared with 2019. The FFO/net debt ratio, an indicator of financial strength, reached 25% at the end of the year. Net debt is equal to €45.4 billion, lower than the forecasts previously provided to the market. Main developments As in previous years, Enel reached a new record for renewable generation capacity in 2020, adding 3,106 MW of new re- newables capacity globally, while at the same time increasing our pipeline of future renewables projects, reaching 180 GW worldwide at the end of the year. The consolidated installed renewables capacity reached 45 GW, again exceeding thermal generation capacity, which fell to about 36 GW (-3.3 GW compared with 2019). Furthermore, 2020 was the first year in which consolidated renewables gener- ation also surpassed thermal output, with 105.4 TWh. This is an important step in the Group’s journey towards a cleaner and more sustainable energy mix and an acceleration of the decarbonization process, which was also underscored by the rapid decline in specific CO2 emissions, which reached 214 gCO2eq/kWh, a decrease of 28% compared with 2019. Thanks to our investments in grids and the simultaneous focus on the digitization of systems and processes, we continued to improve the quality of the service offered to our customers, reducing the average per-customer duration of outages by 12% compared with the previous year, registering a global SAIDI of 258.9 minutes. Furthermore, with the Grid Blue Sky project, we are completely overhauling the operating model of the distribution grids. The goal is to create a single global operating platform by 2022, which will enable the efficient integrated management of our grids in all the geographical areas in which we operate, supporting the sustainable development of the asset portfolio in order to maximize value. The benefits associated with the project are manifold. These include increasing the value of our services for customers, the rapid implementation of innovative solutions, an increase in the efficiency of our processes and the creation of shared value in the communities in which we operate. During 2020, the development of public and private charging infrastructure for electric vehicles continued and, thanks in part to interoperability agreements, we have exceeded 185,000 charging points worldwide. The Group has also supported the electrification of public transport thanks to the supply of charging stations for electric buses, with Enel X closing 2020 with over 900 electric buses managed globally. We were once again the leader in terms of the number of lighting points operated, at 2.8 million worldwide. We also confirmed our ability to assist industrial customers in using energy more efficiently, bringing active demand management capacity to 6.0 GW and total battery capacity installed at those customers or directly connected distribution and transmission grids to 123 MW. With regard to the digital transformation, the decision to migrate 100% of applications to the cloud has enabled Enel to guarantee the continuity of supply of essential services even during the pandemic.