H1 2020 results July 28, 2020 Market context was challenging over - PowerPoint PPT Presentation

Enel Russia H1 2020 results July 28, 2020

Market context was challenging over Q2 2020 Avg. spot power prices¹ Electricity demand Q2 2020 vs Q2 2019 Q2 2020 vs Q2 2019 H1 2020 vs H1 2020 vs H1 2019 H1 2019 Center Center -2% -18% -13% -2% South South -20% -6% -12% -3% Ural Ural -9% -8% -5% -7% 1st Price Zone 1st Price Zone -6% -15% -4% -11% 2 1. Day-ahead market (DAM) prices

Key highlights of the period Renewable Coal power plant Resilient Shareholder performance projects progress disposal remuneration Active Limited construction Fixed dividend Handover influence of phase amid approved for 2019 completed COVID-19 on H1 challenging FY results financial results external context 3

Company’s response to COVID -19 challenge Our business What next? Extending of remote work mode Maximum attention to health & safety conditions Smart-measuring of temperature on sites and digital channels Further improvement of of increased disinfection frequency communication and data exchange with a focus on cybersecurity Molecular testing of personnel in all sites as a matter of biweekly screening Development of office seating and protection COVID insurance coverage plan together with preventive measures for access to worksites Segregation of operation and maintenance personnel and contractors Digital app supporting social distancing and Application of a virtual remote assistant for tracing contacts of personnel technical inspection and repair activities Works on Azov and Kola sites never interrupted during COVID-19 period 4

Azov Wind Farm: construction going ahead Site works on foundations, roads and T-line - completed Delivery of main wind turbine components - ongoing https://youtu.be/NZqklTHmJdU Installation works - started 5

Reftinskaya GRES: handover completed ahead of schedule RGRES on Financial result of Enel Russia RGRES on Financial result of the Purchaser 2 bn RUB 14.7 bn RUB Up to 3 bn 4 bn RUB RUB RGRES off ER’s + Purchase of several categories balance sheet of stocks (c.2bn RUB) 20 June 08 August 01 October 01 July 2019 2019 2019 2020 Earn-out (contingent Signing Completion End of Transition component) Period • ER operated RGRES under the lease • Annual payments up to Conditions precedent • Inventory satisfaction: title; personnel maintained by ER 600mn RUB each if actual • Title transfer net output and/or DAM price • ER’s EGSM • The Purchaser applied for permits & exceed the reference values approval licenses • FAS approval 9 months 5 years 6

H1 2020 Financial results

Financial highlights (RUB mn) Net ordinary Net Debt / EBITDA² Revenue EBITDA Income Net Debt 20,873 5,557 2,798 11,866 1.0x -40.9% -36.9% -34.6% +184.5% H1 4,171 1 35,293 8,804 4,279 1.1x 2019 1. As of December 2019 8 2. Last 12 months

Effects of exit from coal generation and drop in electricity demand Net power production by technology (TWh) Power sales (TWh) -52% -53% 17.6 20.3 4.2 8.4 8.3 9.7 2.8 2.5 1.9 16.1 6.4 7.8 5.8 H1 2019 H1 2020 H1 2019 H1 2020 Free market Regulated market Oil&Gas CCGT Coal Equipment 82% 84% Utilization on net 45% 36% availability electric capacity 9

Change in technology mix together with drop in electricity prices jointly affect margins Average unitary selling price (RUB/MWh) ¹ -6% without +5% RGRES in H1 2019 Average unitary margin (RUB/MWh) 1,226 1,163 -61% -53% without RGRES in H1 2019 H1 2019 H1 2020 Average unitary cost of sales (RUB/MWh)² 204 +2% without +20% 79 RGRES in H1 2019 H1 2019 H1 2020 1,147 959 H1 2019 H1 2020 10 1. Including regulated power sales, day ahead market and balancing market sales 2. Including fuel cost and energy purchases

Change in assets perimeter results in lower revenues being compensated by cost economies … Variable costs (RUB bn) -41% Operating revenues (RUB bn) Purchased 20.9 power -41% 2.8 12.3 Fuel 35.3 1.5 18.1 2.0 10.8 9.7 H1 2019 H1 2020 Heat and other 20.9 Fixed costs (RUB bn) Capacity 1.8 7.2 -35% Electricity 23.5 Overhead 5.4 11.9 0.6 Personnel 3.5 1.9 0.4 O&M not H1 2019 H1 2020 1.3 1.4 manageable 1.0 O&M manageable 1.4 11 0.7 H1 2019 H1 2020

…which leads to expected results on EBITDA dynamics EBITDA evolution (RUB bn) -37% (5,766) 628 1,890 8,804 5,557 H1 2019 Gross margin Fixed costs Other items H1 2020 12

Net income performing better than EBITDA on lower net financial charges Δ YoY H1 2020 H1 2019 EBITDA (all - RUB mn) 5,557 8,804 -37% DD&A and impairment (1,698) (10,691) -6 times - including Impairment of PPE ¹ related - (8,417) - to Reftinskaya reclassification Reported EBIT 3,858 (1,887) - Ordinary EBIT 3,858 6,137 -37% Net financial charges (336) (755) -56% Income tax (charge) / benefit (725) 499 - Reported net income/(loss) (RUB mn) 2,798 (2,142) - Net ordinary income 2,798 4,279 -35% 13

Investments and changes in working capital caused increase of Net debt Net debt evolution (RUB mn) +185% (26) 6,711 11,866 991 4,171 (5,171) 5,190 ¹ ∆Working capital 31Dec19 Cash flow from Income tax Capex Net financial 30Jun20 operations charges and Other 14 1. Includes increase/(decrease) in taxes payable, other than income tax. Over 1Q 2020 the Company paid 4.1bn RUB of VAT accrued in 2019 for Reftinskaya sale

Debt profile and liquidity position Gross debt profile Gross debt by maturity As of 30 Jun19 As of 30 Jun20 11% 18% 23% 43% 89% 28bn RUB 92% LT Portion 22bn RUB 22% ST Portion 66% 17% 11% 8% 31 Dec19 30 Jun20 Corporate loans (RUB) Corporate loans (EUR) Project financing (RUB) Commercial papers (RUB) Total credit facilities: H1 2020 H1 2019 1% 132.2 132.2 utilized & available Weight Weight AVG cost AVG cost (RUB bn) 30/06/20 30/06/19 100% RUB 83% 8.5% 8.4% % utilised 17% 12% EUR 17% n/a 0% 1.6% 15

Contact us Channels Website Mobile App Enelrussia.ru Enel Investors Ekaterina Dubovitskaya Investor Relations Email ekaterina.dubovitskaya@enel.com Follow us Phone +7 495 539 31 31 ext. 7746 Ilya Kalinin Investor Relations Email ilya.kalinin@enel.com Phone +7 495 539 31 31 ext. 7843 16