Enel Group pledges 4.7 billion euro investment to digitise Enel’s asset base, operations and processes and enhance connectivity, and targeting 1.6 billion euro cumulative incremental EBITDA contribution between 2017 and 2019. Enel will put emphasis on enhancing customer operations to protect and grow Enel’s most important asset, its portfolio of over 60 million end-users, targeting a 3 billion euro EBITDA contribution in 2019.
“Our business has outperformed on the targets we had set, so we are now in a position to take our strategy to the next level a year early”, said Francesco Starace, CEO and General Manager of Enel.
Since the presentation of last year’s plan, the Group has delivered on each of its key pillars ahead of schedule:
Operational Efficiency – reduced cash costs by 10% in nominal terms since 2014.
Industrial Growth – on track to achieve 2016 growth EBITDA target and already addressed 90% of 2017 growth EBITDA.
Active Portfolio Management – 4 billion euros of disposals finalised in less than 2 years, ahead of scheduled target to achieve 6 billion euros of capital recycling by 2019.
Shareholder remuneration – committed to an attractive and growing dividend. Pay-out ratio increased to 60% from 40% and dividend per share increased by about 30% vs 2014.
This progress against the strategic plan has allowed the Group to maintain and even slightly improve ordinary EBITDA guidance for 2016, notwithstanding a more challenging environment than that envisaged in the previous plan.
