EGP’s Goals and Approach to Sustainable Development16/02/2017

te: The Millennium Development Goals Report 2015

Outline

- Presentation of EGP and Innovation (5 min)- enel commitment in the achievement of UN

Sustainable Development Goals (5 min)- EGP implementation strategy: the CSV

approach (8 min)- Ongoing sustainability initiatives at a glance

(2 min)

Enel today1

Global diversified operator

31. As of 30th June 2016 2. Presence with operating assets

= Enel presence 2

Enel Group•Capacity: 87 GW •Networks: 1.9 mn km•End users: 61.5 mn•Free customers: 23.1 mn

nd Central Americaity: 3.5 GW

Americaacity: 18.6 GW orks: 0.32 mn kmusers: 15.3 mn

Iberia• Capacity: 22.8 GW • Networks: 0.32 mn km• End users: 11.9 mn• Free customers: 12.5 m

Europe and North Afric• Capacity: 14 GW • Networks: 0.09 mn km• End users: 2.7 mn• Free customers: 0.1 mn

Italy • Capacity: 27.8 GW • Networks: 1.14 mn km• End users: 31.6 mn• Free customers: 10.5 m

Sub-Saharan Africa - A• Capacity: 0.3 GW

Enel Green PowerA Global leader

Countries with installed capacity

Countries with awarded capacity or other developments

30%

18%

38%

2%10%

2%

LatamIberiaItalySub-Saharan Africa & AsiaNorth & Central AmericaEurope & North Africa

36.4 GW

Installed capacity by geography1

21%

71%

7%

1%

Wind Hydro

Geo Solar & othe

65.8 TWh

Net production by technolog

1. As of 30th September 2016

Electricity Demand Growth 2012-2040 (BNEF)

-1.000 0 1.000 2.000 3.000 4.000 5.000 6

Coal Gas Nuclear Renewables

China

IndiaUSEU

M.EastAfrica

Changes in Power Production Mix until 2035 (TWh(IEA New Energy Oulook 2015)

The RES market is expected to grow steadily worldwide

Developing countries will contribute over 60% to global growth in electricity production until 2035

It is estimated that RES will account for around 50% of new business

Renewable role in demand growth

EGP is focused on Mature Technologies… …and investigates Innovative Solutions for the mark

Technology Focus: Proven Renewables

Wind OnshoreWe expand on our main portfolio driver

Solar PhotovoltaicWe intend to play a key role in solar market

Geothermal EnergyWe take advantage of our leadership in the sector

HydroeletricWe concentrate on hydro to give a significant contribution to the electricity demand

BiomassWe focus on converting conventional plants

Innovation: the key to compete

StorageWe work to make Renewable Energies uninterrupted

Offgrid systemsWe bring electricity even in remote areas

Hydrid SolutionsWe work to optimize the reliability of the supply and to reduce the cost of the RES electricity

Solar Home SystemWe want to offer full services to our customers

Global renewables energies technologies

Marine EnergyTest and install Wave Energy converters

Global renewable energies innovation approach

INNOVATION APPROACH

Leveraging on internal assets: Top

management commitment

Structured organization

Internal dissemination: Newsletter Structured

reports (PPM & CKS)

Innovation Day

External dissemination: Broad media

coverage Top

management events

Conferences

Open Innovation:

Solid process Differentiated

sources Yearly

Innovation Competition

Open Innovation: Differentiated sourcesAssessed ~ 920 opportunities from 2015

Reactive approach

Start-up (from Holding)

Crowdsourcing

Colleagues

Top Management

Venture Capital

Proactive approach

Peer Intelligence

Conferences

Market reports

Innovation Competition

Start-up Portal

Crowd sourcing Platform

Competition Platform

~290propos

~500propos

~130propos

Main EGP innovation projects in execution

POTENZAWind + storage

POTENZAWind + storage

OLLAGUEMinigrid: hybrid

plant with storage system

OLLAGUEMinigrid: hybrid

plant with storage system

O PABELLONcrogrid with ogen storage system

O PABELLONcrogrid with ogen storage system

LA SILLAPV plant with bifacial and smart modules

LA SILLAPV plant with bifacial and smart modules

CATANIA 1PV+storageCATANIA 1PV+storage

3SUN FACTORY 2.0high efficiency Bifacial HJT

3SUN FACTORY 2.0high efficiency Bifacial HJT

LIBELLAMini wind generator

LIBELLAMini wind generator

Hydro O&M OptimizationHydro O&M

Optimization

RETAIL SOUTH AFRCA

PV+BESS hybrid system for

residential market

RETAIL SOUTH AFRCA

PV+BESS hybrid system for

residential market

40 SOUTH:wave energy

converter

40 SOUTH:wave energy

converter

LLWATERproject (Geo + ompleted with ded power ncrement of

W (up to 3 MW )

LLWATERproject (Geo + ompleted with ded power ncrement of

W (up to 3 MW )

BATTERY EMSApproved acquisition of target company (system integrator) out of 30 investigated

BATTERY EMSApproved acquisition of target company (system integrator) out of 30 investigated

SAN LEANDROBehind the meter tech campus

Microgrid PV+Storage

SAN LEANDROBehind the meter tech campus

Microgrid PV+StorageOVE FORTction of a hybrid (geo+ Hydro) ed on the 12th

Ongoing tests omising results

OVE FORTction of a hybrid (geo+ Hydro) ed on the 12th

Ongoing tests omising results

WIND BIG DATA BOOST predictive maintenance

WIND BIG DATA BOOST predictive maintenance

SOLAR PREMAINTEN

advanced diand pred

solution throdata

SOLAR PREMAINTEN

advanced diand pred

solution throdata

Automation and robotics for Innovative

PV (e.g. Solar field cleaning and PV

assembly)

Automation and robotics for Innovative

PV (e.g. Solar field cleaning and PV

assembly)

Smart Composolar plant pro

optimizat

Smart Composolar plant pro

optimizat

ENEL INNOVATION LAB - CATANIA

ENEL INNOVATION LAB - CATANIA

On September 25, 2015, the United

Nations definitively adopted the new

Sustainable Development Goals

(SDGs) for 2030, which were officially launched the following day at the Private Sector Forum

held in New York.10

: The Millennium Development Goals Report 2015

UN Sustainable Development Goals

te: enel Sustainability Report 2015

enel’s commitment to the United Nations Sustainable Development Goals

On the occasion of the Private Sector Forum Enel announced the Group’s intention to

contribute to achieving four of the 17 goals

Priority definition and significant issues identification – The materiality matrix

The materiality matrix shows the most

important issues forthe Company and for

stakeholders.The result of this

analysis is an important tool to plan activities

and set strategic direction

Sustainability Plan 2016-2020 - Samples

EGP strategy: the Creating Shared Value approach

1. Strategy development processThe journey towards its current CSV model began in 2012. EGP hoped to have a long-term, stable presence in emerging markets, to foster a profitable business strategy, and to avoid the “compensation” attitude (where compensation doesn’t guarantee real value creation) as much as possible.

Enel applied a bottom-up approach with a series of brainstorming workshops to integrate a new and effective sustainability model within the business decision making processThis led to the launch of the Engagement and Empowerment Program—300 people from 10 countries participated in 40 workshops and defined 27 CSV tools

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The strategy

2. Development and execution of the initiativesKey pieces of the CSV strategyWhen embedding CSV into the value chain, EGP first identifies the local business issue and conducts an economic, environmental and social context analysis.The outcome is a Materiality Matrix, which combines company and stakeholder priorities to pinpoint projects EGP should invest in in alignment with site specific needs and business issuesThree levels of value chain

BD phase—in-depth context and risk analysis to select opportunities aimed at generating competitiveness in the long termE&C—mitigate environmental and social impacts during construction, adopt solutions such as sustainable construction sitesO&M—implement and amend existing projects or initiate new ones on the basis of changes and local needs over the long term

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Creating shared value across the value chain: the tools

16

BUSINESS DEVELOPMENT ENGINEERING & CONSTRUCTION OPERATION & MAINTENANCE

CSV COUNTRY ANALYSIS

SITE SUSTAINABILITY

CHECK-LIST

SEECA & STAKEHOLDER

ANALYSIS

MATERIALITY MATRIX

CSV PLAN

SUSTAINABILITY SECTION IN THE SUSTAINABILITY

MEMO

SUSTAINABILITY SECTION IN THE HAND OVER TO

E&C

STAKEHOLDER MANAGEMENT

GOVERNANCE APPROACH - ANTI-CORRUPTION KIT

CSV CLAUSES

SITE ENVIRONMENTA

L EFFICIENCY STANDARDS

SITE SUSTAINABILITY

SCORECARD

CONSTRUCTION SITE IDENTITY

INFO

ETHICS KICK-OFF MEETING

SUSTAINABILITY SECTION IN THE HAND OVER TO

O&M

PLANT SUSTAINABILITY

SCORECARD

MATERIALITY MATRIX

SUSTAINABILITY PLAN

PLANT ENVIRONMENTA

L EFFICIENCY STANDARDS

FACILITIES FOR WORKERS ON

SITE

EVAL. OF JOB/IND.

OPPORTUNITIES &SKILL DEV.

CATALOGUE FOR CSV

ACTIONS AT CONSTR. SITE

EDUCATIONALACTIVITIES FOCOMMUNITIES

EVAL. OF JOB/IND.

OPPORTUNITIES &SKILL DEV.

Sustainability in EGP (2016)89 active projects, 159 sites with CSV applications

159 SITES WITH CSAPPLICATIONS

7732

[VALORE]

89

278K

2.4M

(*

(

(*): including Lowell Bridges Transfer Project (U

PROJECTS OVERALL

O&ME&CBD

18

Thanks

24/02/2017