Enel Spa Unsp/Adr

Good day and thank you for standing by. Welcome to the NL Full Year 2023 Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. I would now like to hand the conference over to your first speaker today, Monica Girardi. Please go ahead.

Thank you. Good evening to all the people connected. Welcome to the full year 2023 results presentation, which will be hosted by Enel CEO, Flavio Cattaneo, and the CFO, Stefano De Angelis. Following the presentation, we will have the usual Q&A session. We ask those connected to the webcast to send questions only via email at investor.relations at enel.com. Before we start, let me remind you that media is listening to both the presentation and the Q&A. Thank you, and now let me hand over to the CEO.

Sorry, I started, but the phone closed. Thank you. Thank you. Sorry, sorry for this delay. Thank you, Monica. Welcome to everybody. Group delivery in 2023 was strong. All the targets revised upwards in November 2023 were met. Financial are up, WDGT are near, and we recorded an outstanding improvement of cash generation with FFO up more than 60%. The positive evolution of regulatory frameworks that I will delay later confirms the potential value creation of our capital allocation and provides support to the 2426 plan delivery. On the M&A side, as promised, we are close to complete the disposal plan announced with around 90% of the target already addressed. Lastly, in light of the strong results achieved, we'll propose to the next AGM a dividend per share of 43 cents. Let's now have a look at O23 delivery on the next slide. Last year, the group recorded an outstanding financial performance across all businesses. EBITDA reached $22 billion on the back of a less volatile environment that restored the full growth potential. Net income came in at $6.5 billion, increasing by a remarkable 20% versus 2022. FFO grew almost 6 million versus last year due to the EBITDA growth, the recovery in working capital, and the managerial action already implemented. Let's now have a look at the progresses of each key pillar of our strategy, starting with the capital allocation on the next slide. Our capital allocation was selective and maximized returns while minimized risk, as promised. Europe took the lion's share, absorbing 60% of our total capex, 20% more than last year. The shift into our capital allocation strategy was already visible in 2023. I want to highlight that more than 50% of our investment have been in assets with long-term stable and visible returns. Looking at the business KPIs, we delivered a sound growth in RAP in renewable capacity and repositioning into the B2C segment. Our advocacy will support investment in regulated activities in futures. As you know, we concentrate investment into stable, visible, and remunerative regulatory frameworks. End. geographies. Over the past couple of months, we recorded a notable improvement. Italy, the implementation of the ROS mechanism is progressing as planned and includes a specific remuneration for spatial project in resiliency. LATAM, we welcome constructive discussion around the regulatory frameworks and the clear rules for tariff adjustment will on one side restore business profitability and on the other allow for a recovery in asset value. In Spain, we'll continue to work to ensure the regulatory framework will be supported from investment into energy transition. In generation, we kicked off our partnership business model with a successful transaction. At the Capital Market Day, we announced three different business models, ownership, partnership, and stewardship. In the partnership business model, investments are shared with third parties to foster capacity growth and to accelerate paybacks and returns. The recent announced disposal of a 49% stake in BESS and the generation capacity project in Italy at around 1.1 billion is an example of our partnership create value for the growth. We inherited the project from the past M&A plan, but we revised the structures of the deal to maintain the control of the asset. Additionally, we close it at much better financial and contractual conditions. And more will come as we expect to create further value leveraging our portfolio rotation. Now we'll move to the second pillar of our action. Last year, we focused on capish generation benefits. FFO reached almost 15 billions on ABDA conversion closed to 70%. This result was possible due to a more effective and cost disciplined organization leading the ratio above 80% in the second half of 2023. The effort on cost reduction is visible across the board, and it's progressing better than expected. In just six months, we were able to save around $500 million compared to the 2023 budget and $200 million year-on-year, a pace of reduction in addressable cash costs in line with the target shown in November. The disposal plan is progressing at sound multiples. As you can see in this slide, is eighth slide. As you can see, we have now closed or announced around 90% of the planned M&A deals aimed at leveraging the group. The re-engineered disposal plan has been executed at strong multiples, and in some cases, even better than comparable transactions. The latest example of our over-delivery is the sale of a 90% stake in grids located in peripheral areas of Milan and Brescia, executed at rich multiples at Stefano. We'll detail later. From now on, we focus the M&A will be on portfolio optimization to unlock resources that can be deployed at higher levels. higher returns. Moving on the third pillar of our strategy, credit metrics improved strongly, even not considering in full the cash proceeds from the M&A activities. FFO on net debt increased 10 percentage points, landing at 25%, and net debt on EBITDA was well below three times, not yet included the cash in from announced disposal. The group not only achieved the target matrix, but is well on track on its leverage. On environmental sustainability, absolute emission continue to decrease versus the base year 2017, in line with our 2030 goal. Finally, Shareholder remunerations, line 10. The resiliency of our business model, the operating performance, and all the managerial action we put in place allowed us to deliver a sound result. We will therefore propose to the AGM a dividend per share of 43 cents after buying more 7% versus previous year and implying a 7% dividend yield at the current share price. Now I leave the floor to Stefano who will dive into the detail on the financial performance. Please, Stefano.