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Edited Transcript of ENEL.MI earnings conference call or presentation 1-Aug-19 4:00pm GMT

Half Year 2019 Enel SpA Earnings Call

Rome Aug 8, 2019 (Thomson StreetEvents) -- Edited Transcript of Enel SpA earnings conference call or presentation Thursday, August 1, 2019 at 4:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Alberto de Paoli

Enel SpA - CFO

* Francesco Starace

Enel SpA - CEO, GM & Director

* Monica Girardi

Enel SpA - Head of Group IR

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Conference Call Participants

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* Alberto Gandolfi

Goldman Sachs Group Inc., Research Division - Head of European Utilities Research

* Anna Maria Scaglia

Morgan Stanley, Research Division - Research Analyst

* Elchin Mammadov

Bloomberg Intelligence - Utilities Analyst

* Enrico Bartoli

MainFirst Bank AG, Research Division - MD

* Harry Peter Wyburd

BofA Merrill Lynch, Research Division - VP and Junior Analyst

* Javier Fernandez Garrido

JP Morgan Chase & Co, Research Division - Head of Utilities and Senior Analyst

* Javier Suarez Hernandez

Mediobanca - Banca di credito finanziario S.p.A., Research Division - Research Analyst

* Lueder Schumacher

Societe Generale Cross Asset Research - Equity Analyst

* Meike Alina Becker

Sanford C. Bernstein & Co., LLC., Research Division - Research Analyst

* Roberto Letizia

Equita SIM S.p.A., Research Division - Analyst

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Presentation

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Monica Girardi, Enel SpA - Head of Group IR [1]

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Good evening, ladies and gentlemen. I'm Monica Girardi, Head of Group Investor Relations. Welcome to our First Half 2019 Results Presentation, which will be hosted by our CEO, Francesco Starace; and CFO, Alberto de Paoli.

In this presentation, Francesco will explain the progresses achieved on our key strategic pillars. And after that, Alberto will walk you through the operational and financial performance of the period.

Following the presentation, we will have the usual Q&A session, open to those connected both on the call and on the web. Before we start, let me remind you that media is listening to both the presentation and the Q&A session.

Let me now hand over to Francesco.

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Francesco Starace, Enel SpA - CEO, GM & Director [2]

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Thank you, Monica. Good afternoon, ladies and gentlemen. And let me start with the highlights of this 6 months. In the first half of 2019, group net income increased by a strong 20%, supported by the ongoing delivery on our strategic pillars. Ordinary EBITDA grew by 13%, driven by networks, which reflected a constructive contribution of regulatory adjustments in South America and the consolidation together with the strong results associated with it of Enel Distribuição Sao Paulo. EBITDA growth was also driven by conventional generation, which benefited from efficiencies, higher nuclear output and prices.

Development CapEx, growing by 33% drove the increasing investments, which reached EUR 4.2 billion overall. Net of perimeter and accounting principles, overall costs decreased by 2%. This was thanks to strong efficiencies across all businesses, totaling around EUR 200 million in the first 6 months of the year.

On group simplification, we completed the first share swap of Enel Américas. We announced the second one to increase our stake up to around 62%. In line with our strategic priorities on the carbonization, we act to support the target to zero emitting generation portfolio within 2050. In particular, we signed the sale of the Reftinskaya coal plant in Russia, a transaction which was also approved by the Enel Russia EGM. And we have also stipulated an agreement with the Chilean Ministry of Energy for the progressive closure of 588 megawatts of coal-fired plants, starting from end 2019 with Tarapaca Bocamina I in 2023 and Bocamina II within 2040.

We are progressing fast towards our sustainable development goals. I will detail the most remarkable achievements later in the presentation.

We move now to Slide #2 on industrial growth. As I said, overall CapEx in the first semester was equal to EUR 4.2 billion, more than 20% higher than last year. 85% of the CapEx was devoted to global renewable energies. That from now on, we will name as Enel Green Power. So the name you will follow us on renewables will be always Enel Green Power. And the other big player of this 85% of CapEx was infrastructure and networks. From a geographical perspective, CapEx was deployed mainly in Italy, South America and Iberia.

Asset development CapEx came in at EUR 2.5 billion, increasing by 33% year-on-year and representing 60% of the total investments. This amount is allocated as follows: 2/3 to Enel Green Power, mainly in North and Central America and Iberia, where a new investment cycle devoted to the carbonization is ongoing; 1/3 to networks, where digital transformation and smart meters are key enablers for new customer services. As of today, around 100% of 2019 and 2020 asset development CapEx is addressed. This provides high visibility on industrial targets for the planned period.

Focusing now on Enel Green Power growth. We go to Chart #3. Here, you see that in 2018, we added more than [3,000] megawatts of renewable capacity, reaching 43.4 gigawatts in total, including projects built and managed by third -- for third parties.

In the first semester of 2019, we built 900 megawatts, out of which, 200 have been connected to the grid. In the period, our activity focused in the opening of a relevant number of new construction sites and fine tuning new processes, key processes, to scale up our yearly target of additional capacity to the 4,000 megawatts of the year benchmark. As a consequence of this, the development renewables will be skewed towards the second half of the year.

From 2020 onwards, we expect a more linear progression of capacity throughout the quarters. As of today, we have more than 7,000 megawatts of capacity in execution, that means in different degrees of construction and execution phases, which will contribute at regimen around EUR 1 billion of EBITDA per year. This capacity represents about 2/3 of the additional capacity target in the '19, '21 period.

Moving to infrastructure and customer services on Slide #4, you can see from this chart that the KPIs on energy infrastructure and customer services show significant improvements. They demonstrate our commitment on developing high quality, reliable and resilient networks and also more sustainable cities. Our efforts on grid digitalization was focused in Italy, where the number of second-generation smart meter is now 10.1 million, almost 3x higher than last year. Group smart meters cover more than 60% of total end users worldwide.

On the development of the electricity -- of the electric mobility infrastructure, we recorded a significant increase in charging points, came in at around 63,000 or plus 70%. On the rollout of the fiber optic networks, we doubled the number of households passed, reaching more than 60 million homes. To satisfy the increasing need worldwide to balance demand and supply, the demand response aggregated capacity and our control increased to 6,000 megawatts. And finally, it is worth highlighting our effort on storage activities with an almost threefold increase. Here, we are including solution for industrial customers in battery storage on the grid.

Switching to operating efficiencies. This is Slide #5. We recorded efficiencies for more than EUR 190 million, mainly in conventional generation, networks and also in retails, thanks to an acceleration of the efficiency plan, which is now well on track to reach our target of EUR 1.2 billion cumulated OpEx savings in the '19, '21 period. The net effect between the full consolidation of Enel Distribuição Sao Paulo and the new accounting principle on operating leases had a net negative impact on costs in the first half of around EUR 100 million. If we don't consider perimeter and the IFRS 16 impact, the OpEx overall -- so the overall OpEx of the company, decreased by 2%, despite the growth of operations, so the material growth of the operations and CPI.

Moving to portfolio management and group simplification. We are looking at Slide #6. What's to be noted here is that we recently signed the sale of Reftinskaya at 3,600 gigawatt coal power plant in Russia at the price of EUR 300 million -- roughly EUR 300 million. The disposal of the asset fits perfectly with our strategy, which is focused on pursuing a more sustainable business model and our targets to fully decarbonize our generation mix by 2050. We will continue to invest in Russia, where we will deploy around 360 megawatts of renewable capacity in the next few years in order to support the energy transition in the country and reducing the overall risk profile that we have in Enel Russia.

Moving to Latin America. In the first semester of the year, we have completed the first share swap contract, which increased by 5% our stake in Enel Americas. More recently, we have announced a second swap contract to buy up to an additional 5% of the company, which should be completed in the forthcoming months. As a result of these 2 transactions, the group will reach around 62% stake in Enel Americas, which we expect to translate into more than 2% EPS accretion from the next year onwards.

Last Friday, the first preemptive right period associated with Enel Americas capital increase has ended with a record subscription rate of around 97%. The process of the -- our capital increase should be fully finalized by the end of September.

And now let me conclude with our progresses on the sustainable development goals, Chart #7. As you know, the approach we have is to fully embed the sustainable development projects -- the sustainable development goals in our projects, in our activities. We address all of our activities with a valued shared approach that encompasses all our stakeholders, including all the communities around us.

And so if we look at the communities themselves in the first quarter of 2019, we are well on track to reach our goal of SDG 4 in terms of beneficiaries of high-quality, inclusive and fair education. As to SDG 7, we have achieved an increase of 7.1 million beneficiaries, having access to affordable and clean energy. We made considerable progresses on SDG 8, relevant to development of sustainable and inclusive economic growth, reaching 2 million beneficiaries on climate change. Finally, we are progressive in our journey to a Zero Emission generation mix.

In the first half of 2019, we reached 56% of emission-free production, narrowing the gap with a 2021 target of 62%. Beyond these 4 SDGs where we took commitment in 2019 to the UN Global Compact, we reckon that our business has a direct or indirect impact on almost all of the '17 UN sustainable goal.

I will now hand over to Alberto. He will go through the details of the operating and financial performances for the first half of the year. So Alberto.

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Alberto de Paoli, Enel SpA - CFO [3]

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Thank you, Francesco. Good afternoon to you all. Let's move to the financial summary for the first half 2019. We are on Slide #9. As a recap, ordinary EBITDA was up by 15% to EUR 8.8 billion. Net of FX, ordinary EBITDA would have increased by 15%. Ordinary group net income came in at EUR 2.3 billion, 20% higher versus last year. FFO stood at EUR 4.9 billion, up 13%, mainly driven by higher EBITDA. Group net debt reached 45.4%, increasing 10% versus the end of 2018. Change is attributable to the restatement related to IFRS 16, higher investments, acquisitions completed in the period and negative FX impacts.

Moving now to ordinary EBITDA. Let's take a look on the main drivers on Slide #10. As already commented, ordinary EBITDA is up by more than EUR 1 billion, recording a 13% growth. This growth supports our full year targets and offers high visibility on the group's operating performance also in the midterm.

According to the classification that we presented during the last Capital Market Day in November, the main drivers of the performance are as follows: Asset development contributed by around EUR 200 million, driven by Enel Green Power project in the U.S. and the rollout of the second-generation smart meters in Italy. Customer contribution increased by around EUR 100 million, thanks to retail, which benefited for increased customers in the free market, improving margins and efficiencies. Asset management increased by around EUR 700 million mainly due to higher electricity prices and margins recorded in South America and in Europe, which offset the lower production. Hydro production recorded particularly low levels during the period, but we expect a normalized second half.

Positive tariffs adjustments in South America, particularly in Brazil and Argentina, changes in perimeter, mainly as a consequence of Enel Distribution Sao Paulo (sic) [Enel Distribuição São Paulo] acquisition, which weighed negatively on our asset base with -- and FX, sorry, that weighed negatively on our asset base were over EUR 160 million, basically due to the Argentina peso devaluation. Additionally, we recorded around EUR 160 million for the early termination of PPA recommended in the first quarter in Chile.

On the next slide, we focus on the main global business line drivers, and you can see here the performance of each global business line. It's worth highlighted, Enel Green Power and Networks accounted for 70% of the overall ordinary EBITDA, confirming a well-balanced risk return profile of our business model.

Going in debt in every global business line, starting from Enel Green Power. Worth to mention that the performance in Enel Green Power was negatively impacted by more than EUR 300 million in the first half, mainly due to lower hydro levels compared to standard production. And as commented by Francesco, the profile of additional capacity that for this year, and only for this year, is skewed towards the second half of the year.

Despite the above-mentioned dynamics that we expect to recover from the next year, ordinary EBITDA came in at EUR 2.3 billion or plus 6%.

Main drivers are as follows: Asset development that contributed for around EUR 140 million, mainly in the U.S., this is thanks to the full consolidation of our North American assets and the capacity commissioned last year. And as for Asset Management, we account higher prices for an impact of around EUR 200 million, mainly in Italy, Iberia and South America, lower production volumes, as already commented, with an impact of around EUR 250 million. And lastly, Enel Green Power recorded asset half of the positive one-off item associated to the early termination of the PPA in Chile.

Worth mentioning that on July 30, we announced the renegotiation of that PPA contract according to new terms, and we will supply up to 3 terawatt hours of renewable energy per year to AngloAmerican over a 10-year period starting from 2021.

I will now go into the analysis for infrastructure in network, and I'm now on Page 13. We reported an ordinary EBITDA of EUR 3.9 billion, 11% higher versus last year. Net -- or negative FX impact and EBIT inflation in Argentina, EBITDA would have increased by 13%. Asset development added EUR 95 million, mainly in Italy where, in the last 12 months, we installed around 6.3 million of second-generation smart meters, and in South America, on quality of service and lower network losses. Customers contributed with EUR 25 million related to higher connection fees in Italy and Iberia. Asset management contributed around EUR 280 million. And here, we highlight higher efficiencies that offset the negative CPI impact, a positive contribution of regulatory changes for around EUR 140 million recorded in South America, especially in Brazil, for new regulatory frameworks in Rio, Goias and Sao Paulo and in Argentina, then the positive solution of the active regulatory recognition in Argentina, lower margins due to lower volumes and previous year adjustments in Italy and Spain, negative impact of FX, a deeper inflation that was around EUR 70 million, and finally, the full consolidation of Enel Distribuição Sao Paulo that impacted for around EUR 100 million in the first half.

Worth highlighting that in the last 12 months, the performance of this asset was outstanding. EBITDA increased by 70%, thanks to efficiency in OpEx, regulatory improvements and higher volume distributed.

Now moving on Page 14 on retail. Ordinary EBITDA came in at EUR 1.6 billion or plus 4% versus last year. In particular, EBITDA associated with the free market increased by more than 4%, mainly driven by a 14 increase in the power unitary margin in Italy and Spain, where we also added 900,000 customers. Volumes declined by around 3% as a consequence of a specific commercial strategy targeting B2C clients and small and medium enterprises. And then we got around EUR 30 million efficiencies, most of which recorded in Italy. EBITDA associated with the regulated markets increased overall by EUR 10 million on different combined effects. We got a reduction for lower prices and volumes, which negatively affected Italy and Spain, an increase in cost of sourcing, coupled with a temporary declining in regulated tariff in Romania and deposit contribution from South America, mainly due to the consolidation of Enel Sao Paulo and the effect of the active regulatory Argentina.

Moving now to conventional generation on Slide 15. Ordinary EBITDA increased by 78% and came in at EUR 831 million. The remarkable performance is mainly attributable to a higher availability of nuclear resources in Iberia, coupled with higher prices and temporary suspension of the generation tax. The full contribution of Fortaleza in Brazil and the hedging strategy in South America we run during the first half and efficiencies for around EUR 90 million, thanks to an effective efficiency plan, which more than offset the negative impact from CPI.

As commented before, we accounted here the other half of the early termination of a PPA contract in Chile.

And we have gone through business drivers, now we can move to the financial management selection -- section. We are on Page 16. As you can see from the chart, group net income increased 20%, as said, and came in at EUR 2,277,000,000, thanks to the increase in ordinary EBITDA, which fully offsets the trend in D&A, taxes and minorities. In more details, D&A increased by around EUR 230 million due to higher depreciation following the implementation of the new accounting principle, and this is for EUR 110 million of difference, consolidation of Enel Distribuição Sao Paulo as a consequence of our investment activity, mainly in the U.S.

Financial expenses grew 3% -- sorry, grew EUR 35 million, driven by other financial expenses, increasing for the consolidation of Enel Distribuição Sao Paulo and the higher actualization on termination benefits and pensions fund in Iberia. Despite a higher average net debt in the period and the negative impact for the implementation of new accounting principles, net financial expenses on debt came in flat year-on-year, thanks to a 30 basis point decrease in the overall cost of debt.

Results from equity investments stood at minus EUR 85 million, mainly due to North America joint venture unwinding. Taxes increased by around EUR 130 million as a consequence of the higher earnings before taxes. Some positive impacts related to fiscal incentives and intellectual property in Italy, the recognition of deferred tax asset in Argentina and the fiscal reform in Colombia, where the nominal tax rate moved from 37% to 33%. I would remind you that during the first semester of 2018, we also booked some positive one-off item such as the recognition of deferred tax asset associated with Trisan in Italy. Net of one-offs, the normalized tax rate for this first half stands at 29%, in line with guidance. Minorities increased by 18% due to the performance recorded in South America.

Now moving on the cash flow, and I am on Slide 17. FFO stands at EUR 4.9 billion, EUR 500 million higher than last year or plus 15%, supported by ordinary EBITDA growth. In detail, FFO evolution comes from higher EBITDA after provision for around EUR 1.1 billion, a negative EUR 700 million delta net working capital versus previous year, mainly due to temporary effects associated with the increase in CO2 inventory, first half seasonal evolution of CapEx and the recognition of regulatory adjustment in Argentina. We expect to recover the EUR 1.6 billion negative impact during the next quarters, thanks to the reabsorption of seasonal and temporary items and the collection of resolution #50 in Italy.

Then we had higher taxes paid, mainly due to advanced settlement tax payment dynamics, lower financial expenses paid for around EUR 300 million, mainly due to negative one-off occurred last year and a temporary different dynamic in the payment terms of bond coupons related to the debt refinancing transactions.

Free cash flow stood at EUR 800 million, notwithstanding an increase in development CapEx by EUR 800 million, confirming the capacity of the group to fully cover investments growth with operating cash generation.

Before the closing remarks, let's take a look on net debt. I'm on Page 18. As said, our net debt stood at 45.4%. Changes are driven by positive free cash flow, already commented, and dividends paid for EUR 2.2 billion. Then we had EUR 1.1 billion associated with our active portfolio management of the period, mainly impacted by the unwinding of the North America joint venture and the equity swap closed -- the first equity swap closed in Enel Americas. And then we had EUR 400 million negative FX impact from revaluation of local currencies against the euro. This impact is almost entirely neutralized on the reimbursing value of our debt by our hedging derivatives. We are confident to reduce our net debt by year-end, thanks to improvements in FFO and considering active portfolio management opportunities.

Our gross debt increased by about EUR 1.9 billion, mainly due to the above-mentioned dynamics or our net debt evolution, partially offset by our continuous effort on cash management optimization.

And now I leave to Francesco for the closing remarks.

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Francesco Starace, Enel SpA - CEO, GM & Director [4]

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Thank you very much, Alberto. As we've seen, very good results. They were achieved during the first semester. And they were supported by good efforts by all the business lines. This confirms this integrated business model solidity that we are pursuing.

There is an acceleration of development CapEx. This has been covered fully by a very sound cash flow generation. This will be a continuing theme. It will continue to grow to fuel our growth ambitions in the medium and long term.

As of today, we enjoy a high level of visibility on our future, thanks to the delivery of operating performance, the projects that we have secured, the efficiencies that are robust and the recent changes in regulation that we just have observed.

So not only we confirm the targets of the final year, but we are also reiterating our high confidence in achieving the medium-term goals of our strategy.

So we thank you for your attention, and we open now the Q&A session.

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Questions and Answers

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Monica Girardi, Enel SpA - Head of Group IR [1]

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Okay. Opening Q&A session. The first question comes from the line of Harry Wyburd from Bank of America Merrill Lynch.

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Harry Peter Wyburd, BofA Merrill Lynch, Research Division - VP and Junior Analyst [2]

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Three questions from me, please. The first one is quite granular and it's on one-offs. But I just wonder if we could go through the one-offs that you expect in ordinary EBITDA for this year. And it's a bit of a fill-in-the-blanks kind of question. So we know that the Chile PPA is EUR 160 million. We know that the one-off component of the GE deal in the U.S. was EUR 100 million. Could you clarify what the gain was, if there was one, on the Brazilian asset sale. And how much of the Argentina benefit was one-off as opposed to recurring? And then is there anything else of a one-off nature in ordinary net income that we should have in mind for this year?

Second one, just on Italy retail, just a very simple question, if there's been a bit of a silence from that. And so it seems like we're heading for another delay in the full liberalization of Italian retail, but I wondered if you had any update from that?

And then the final one is big picture. I guess, we're in a world where Ofsted now has a bigger market cap than, say, ENGIE, and the market seems to be -- or at least, equity investors seem to be placing a big premium on ESG purity. Obviously, you've got a very clear road map now for coal closure, a lot of which you've already talked about in the presentation. But the question is, is there any scope to accelerate what you're doing? I mean, most of the coal will be gone by the mid-2020s. So that's still 6 years away. Can you do anything to speed this up through disposals, through bringing forward closures, with the result being that you have a lower coal footprint?

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Francesco Starace, Enel SpA - CEO, GM & Director [3]

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Thank you, Harry. Let me take question 2 and question 3, and then Alberto will do the #1. On Italy delay -- on Italy retail, so far we have no formal indication of a further delay. There are, obviously, talks around the June 2020 deadline. I think it's most likely -- and I should add that I myself had some context on this matter. I think that -- let's put it this way, it's highly unlikely that in 2020, we see the end of the system abruptly. It is most likely that we might see a partial phase out of the micro business that still remains in this segment and a subsequent delay for the retail end of the market, which would be substantially the same of a large delay because the micro business portion of this market is not large. But this is very preliminary. And I should add, it would be only happening after a substantial cleanup of the existing retail operators that are widely undisciplined and extremely unreliable. So there is the need -- and this has been acknowledged by everybody, including the regulator, that there's a need to establish some principles to, let's say, regulate what minimum criteria and operator must have to operate on this market and then throw millions of people in the market itself.

So to make a long story short, yes, there is a highly likelihood for a delay, either total or partial, and quite unlike that this becomes total free on 2020.

On the second point, which is -- on the first point, which is -- sorry, on the second -- third point, which is the ESG for purity. I think we have -- you have to wait for the Capital Market Day in November to have a clear picture on the end-of-the-coal fleet that we have in our management. There are going to be deadlines, and there are going to be more than that, clear signals on what we intend to do on that. You have to consider that the responsible way of shutting down large coal generation -- generating or, let's say, getting rid of large coal generating facilities is by a sale, in the case of Reftinskaya is just an example, or a transformation in something else. Very seldom a simple shutdown, and not only for marginal plants like, for example, we have Bocamina I and Tarapaca in Chile. But the large existing infrastructure that we have, not many, but they need to be substituted with something else in order to keep the network up, and that will be a detailed plan that you are going to see in November. It will be probably kind of a surprise for many people, it will be quite detailed.

On the first part, which is the one-offs on the EBITDA, I think, Alberto will go through that?

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Alberto de Paoli, Enel SpA - CFO [4]

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Yes. So for the overall impact expected for the year. So we have -- what we got the first half. And in the first half, what we have as a one-off is the AngloAmerican penalty, so the closing of the PPA, where we got EUR 160 million. The active regulatory in Argentina, that is EUR 227 million, then we got some -- the [Tercera Catalana], the nuclear tax for roughly EUR 30 million, and others one-off minor for roughly EUR 40 million.

When it comes to Argentina, what is one-off and what is recurring. One-off is this EUR 227 million. On the other side, the first regulatory improvement occurred in February will drive roughly EUR 60 million of growth recurrent, and a second regulatory increase is expected for September, October.

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Harry Peter Wyburd, BofA Merrill Lynch, Research Division - VP and Junior Analyst [5]

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Okay. Sorry, just to quickly clarify that. So EUR 160 million from the Chile PPA, EUR 227 million positive from Argentina, EUR 30 million from the nuclear tax and EUR 40 million, others? And then -- is there also the EUR 100 million from the GE North America game?

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Alberto de Paoli, Enel SpA - CFO [6]

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Well, so, this is coming from our BSO activity. So it's recurrent because every year, we have -- we said that we have this kind of items. So it is not, for us, a one-off. It's a normal way to do business.

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Monica Girardi, Enel SpA - Head of Group IR [7]

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Okay. Next, Alberto Gandolfi from Goldman Sachs.

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Alberto Gandolfi, Goldman Sachs Group Inc., Research Division - Head of European Utilities Research [8]

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I have 3 questions on my side, please. The first one is for Mr. Starace. If you can comment on the statements by the coming president of the EU about the New Green Deal and the ability to move the 2030 greenhouse gas emissions reduction targets to above 50%, 55% versus the current 40%. What do you think that will do to the renewable share of output in Europe? Is it going to be more than doubling from here? Yes? No? And when can you exceed your annual 4 gigawatt addition per year, just from a technical perspective. Do you have already the machine in place to go beyond that?

The second question is, considering in your balance sheet, I will not say a number, your vision and the capabilities from the development and execution perspective, I continue to be slightly surprised by seeing you not moving into offshore, and I know it's like big projects, 7-year development or so, but is there any plan through maybe a JV with an energy company or an existing player to tap into this market that most projections soon enough could be like EUR 40 billion, EUR 50 billion CapEx per year, with much higher barriers to entry, admittedly, versus onshore and solar. And I know you've been skeptical in the past for long-term cost, but the barriers to entry really seem much higher.

And the last question is on specifically Italy. Considering the margins in retail, and particularly, I mean, the decline in rates and opening up for the allowed walk in about 3 years' time. Just to make sure this does not become an Achilles' heel for you, what do you think is going to be the outlook on digitalization investments for the grid? Is this going to become a potential way to protect you against declining allowed returns?

And can you also comment on digitalization. What could be your cost-cutting opportunity in retail from here? So what does it take for you to have the cost structure of a new entrant with the scale of Enel and 30 million clients in Italy. So how long? And what's the scale?

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Francesco Starace, Enel SpA - CEO, GM & Director [9]

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Okay. So let me answer in the order in which you asked the questions. You might recall that when we were in the last final phases of the cleaning -- of the exiting commission directive drafting, as Euro Electric and also as Enel, we have stated several times that we thought there was space for a more ambitious decarbonization target at European level.

So we think well of the comments of -- also on the line. Obviously, these are her position and this is not necessarily going to be reflected into a new directive right off the bat. So we have to leave with the directive we have.

Is it feasible? Yes, we think it is. And it is probably feasible, more because of a combination of renewable penetration into electrical systems and electricity penetration in other sectors of the economic activity in Europe which, by the way, is already happening.

So if we take into account these 2 phenomena, we meet this requirement, not without -- not with a big effort. So it's something within reach, maybe more unconsciously than consciously. And I think it's not a big surprise that Mme. von der Leyen took the opportunity to put her signature on something that might, at the end, be feasible.

So we think well about that. Then there is a sub-question here, saying, "Okay, you're preparing already for a 4,000 megawatt a year threshold, can you accelerate and do more than that?" We have proven that this is something we are good at. And you also know that our trade market that we take a step at a time, and we don't believe of giant steps in this industry. This is a step-by-step industry development.

So once we are at the 4,000 megawatt threshold, which I think it will be probably end of -- I mean a year from now, roughly, you will hear us talking most likely of something more than that. We've been doing this over and over, and there is no magic around 4,000. It's just a question of that it is the next deadline. In so far opportunities, pipeline depth, capability to execute, we don't see a major problem going forward for the next years because the footprint of available space is increasing and not shrinking.

In offshore, I have not changed my mind because of the optionality we enjoy in our pipeline and because we don't expect this industry to become as competitive within the win industry with onshore in a very quick -- in a very short time. So we don't have an issue of space, where to grow, like many other players have. We don't have an issue of lacking opportunities to invest like many others have. We don't have a dedicated focus, which I respect, on one single technology like others have. We think we will be most likely interested in offshore when offshore will become a non-risky and not so capital-intensive industry as it is today. Don't forget that some of the offshore plants that are still under construction are pinned by -- underpinned by incentives. And we hate this. We think it's intrinsically still a very risky bet.

On Italy retail margins and, in general, about the potential for competitive advantage on digital infrastructure. Yes, there is an OpEx reduction on the retail back end, so on how -- what is the cost to serve customers. If we go deep into the digital transformation, you can comfortably say that we have still a 20% margin improvement if we tap into that OpEx reduction through a digital transformation. You will see much more detail on this and the other big impact that digital will have on the network business during the Capital Market Day.

Let me tell you, we are just at the beginning of the digital transformation curve, and it will be quite surprising where this journey will lead us going forward.

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Monica Girardi, Enel SpA - Head of Group IR [10]

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Next, Javier Suarez from Mediobanca.

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Javier Suarez Hernandez, Mediobanca - Banca di credito finanziario S.p.A., Research Division - Research Analyst [11]

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Three questions on my side as well. The first one is on the cash flow statement on Slide #17 and on the working capital spend, if you can elaborate on the reasons why during the second half of the year, that number should suffer a contraction and to what level? I was interested to see where are you pointing to by the year-end that EUR 1.6 billion be by the end of the year? And the managerial actions that can be taken to make that reduction and to what specific item the reduction is related to? That would be the first question.

The second question is on the cost cutting. The EUR 200 million that you have delivered during the first half of the -- the first semester of the year, what -- do you think that, that is replicable during the second half of the year? I just wanted to see how do you see your operational efficiency pointing to by the year-end.

And the third question is much more on the strategical thing. I don't want to jump into the -- your strategical update in November. But I was just curious to hear from you your current view on the strategical optionality that the company has. And do you believe that it is right for the company to, for example, press the accelerator on CapEx? Or looking at the M&A optionality, are these stale or going into the asset rotation or implementing or accelerating on the share buyback or acquisition of minor recurring interest? So on that different strategical options that you have as a consequence of your strong balance sheet, what is the one that is your top priority at this stage?

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Francesco Starace, Enel SpA - CEO, GM & Director [12]

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Okay. Javier, let me take this third question, which is basically like a teaser of Capital Market Day, that's what it's like, a preview. What can I tell you is that the signals we have are the following. We think we will have a Capital Market Day really hinged upon very strong organic growth going forward fueled by cash flows, which are very robust, and will get even more robust because of the other large underlying theme which is deep -- when I say deep, I mean really a new dimension, deep digital transformation of the company now that we have put everything on the cloud. You will see us accelerating this trend, leaving a big gap between what we do on digital and what the industry, as an average, is doing because we now have the time and the possibility to really accelerate there.

So as a consequence, we think the first reply would be there will be more organic growth. The second, there will be another push in consolidation of minorities. And the best use of CapEx that we see at this point is doing that because we see money into assets that maybe are not that clear to many others, so we need to accelerate there.

Thirdly, as you know, we are going to be active on midsized, small-sized M&A potential opportunities, namely on grids. The evergreen question of the buyback will be also addressed. We continue to remain skeptical about strategic, life-changing, dimensional M&A activity in the next few years, no matter what the low cost of capital will be because they seem to be extremely problematic from all -- from a dimensional standpoint in Europe, extremely dilutive from across Atlantic's dimensional standpoint. And nothing else is available anyway, so I don't think this makes sense for us to consider.

Now on number one and number two, I will leave it to Alberto.

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Alberto de Paoli, Enel SpA - CFO [13]

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For number one, on the cash flow, only to -- so the minus EUR 1.6 billion impact is negative on cash flow, so recovering is positive for the cash flow in the second half. So we are saying that the negative impact on cash flow, EUR 1.6 billion, will become 0 at the end of the year. And this recovery is because I said this negative impact is related to temporary effects mainly related to the CO2 inventory increase and a different CapEx dynamics that is skewed towards the second half. This is the two.

The third is that we will cash in the Resolution 50 in Italy because it's due in the second half. And last, because in the second half of the year, each year, we have some EUR 500 million, EUR 600 million of crawling actions that we run in the second half instead of the first half.

The other question is if cost-cutting efficiencies is repeatable, yes, absolutely. Yes, the EUR 200 million of cost cutting are recurring, are not one-off measures. So we are now seeking for -- to reach EUR 400 million on the overall target of the year.

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Monica Girardi, Enel SpA - Head of Group IR [14]

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Okay. Next question comes from the line of Enrico Bartoli from MainFirst.

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Enrico Bartoli, MainFirst Bank AG, Research Division - MD [15]

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The first one is regarding renewables. So you confirmed that this year, you expect to add this 4 gigawatts on your capacity. If you can give us some granularity on the countries where we see most of the growth over the next 2 quarters and if you can also give us some hint of when you see the growth also, in this case, in terms of area or countries in 2020?

And second question is related to LatAm. You confirm the target for the full year on the overall EBITDA, I guess that you are confirming also the EUR 5.3 billion EBITDA target from South America. I was wondering if you can elaborate a bit on the drivers of the growth in the second half -- in the first half. So there were some, let's say, one-offs, that can be the PPA in Chile or the regulatory symbol in Argentina. If you think that the growth that we could see over the next 2 quarters will be more organic than what we had in the first half.

And the last one is on, let's say, the impact on your cost of debt possibly from the new scenario in terms of interest rates, the recent drop that we saw in the past few weeks, if we can see some benefits on your cost of debt in the second half of the year in 2020. And if you can elaborate on, let's say, the potential that you have in terms of optimization of your cost of debt in the current federal scenario?

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Francesco Starace, Enel SpA - CEO, GM & Director [16]

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I will let Alberto answer, but there was a misunderstanding. I said 4,000 in 2020, not in 2019. 2019, we have the 3,000. Don't forget this is a record, too. So we have 3,000 in 2020, most likely and 4,000 in -- sorry, 3,000 in 2019 and 4,000 in 2020. So where are these 2019 3,000 going to be? Alberto, I think you...

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Alberto de Paoli, Enel SpA - CFO [17]

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Okay. So the vast majority of the development will come from the development of Spain, so which means we are restarting the development of megawatts. So we will have the vast majority in Spain, United States and in Mexico. Then we have some plants that will come online in Brazil. These are for this year. Then so in the Capital Market Day, we can look at how we will develop 4,000 megawatts and where. So it's clear that we are now regaining effort in developing renewable energy in the countries in which we are present as a consolidated basis. So we'd re-present with other business, our main countries.

On LatAm, yes, we confirm the overall targets in LatAm. When it comes to growth, well, yes, we don't see any major impact in -- we don't see any one-off variation in the second half. But we have the full deployment of everything we have run in the first half. I've said all the regulatory changes got in the first half that will -- we got in the first half in different months. That will contribute for 6 months so will be higher. And the normalization of hydraulicity is the second. And on the other side, we will have a huge increase in the renewable capacity with the increase in production associated.

On the other side, we will go out of the EUR 200 million of cost reduction because of the action we have done in the first half. When it comes from the impact on the cost of debt, I said we already reduced 30 basis points this year. And we have now the big amount of debt to be refinanced. But as said, so we will not leave any opportunities to reduce debt if -- so we are entering in a year in which interest costs will be the same or even lower than this year. So we will expect some benefits on this situation on our overall cost of debt.

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Monica Girardi, Enel SpA - Head of Group IR [18]

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Okay. We go to next, Anna Maria Scaglia from Morgan Stanley.

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Anna Maria Scaglia, Morgan Stanley, Research Division - Research Analyst [19]

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Just very 2 quick questions. The first one is regarding Enel Goiás and the news that we've seen over the last few weeks, if you can comment on that? And if there is really any risk on the concession or actually is -- you don't see that?

And the second one is regarding your guidance for the full year because on the basis of those results, the guidance seems -- much has been clearly derisked. On the other side, you are expecting a normalization of idle condition. I'm trying to understand if you are conservative on the guidance and if all idles not normalizing, there is a risk or otherwise you are fully confident this will stop?

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Alberto de Paoli, Enel SpA - CFO [20]

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So Anna Maria, let me tell you this, just a few numbers, because you should know that we bought this company, this Goiás distributor in 2017, end of 2016, 2017. The run rate of investment in 2016 that was employed in the infrastructure there was EUR 90 million the year 2016. In the subsequent 2 years, so '17, '18, we basically doubled this investment because we went from EUR 90 to EUR 221 million and to EUR 190 million the following year. And in this year, we will probably end up at EUR 180 million. So the amount of investment we put year-on-year on the infrastructure that we have acquired is twice what the investment used to be. Why that? Because the infrastructure needed it, okay? We consequently managed to reduce the system average interruption duration index and the system average interruption frequency reported index that are the 2 KPIs that are used to measure the quality of a network in -- year-on-year in a big way.

So we have today, these 2 indexes, way below the regulatory targets and with an improvement that are in the range of the 30% or 40%, and depending on which index you're looking vis-a-vis the regulatory targets.

To the point that the regulator in Brazil for the second year in a row awarded Goiás distributor the national price for the performance as a distributor. Now that said, what the government -- what the Governor said remained words by the Governor and no actions were followed. I should also note that the license is not the governor's right to remove but the regulator, and we have no indication whatsoever that it has ever been considered. So that's not a concern we have. We are fully committed to continue improving Goiás, as we do all over the world and very happy about the performance of the first 2 years of managing this company.

I should add on the full year guidance that we are, as you know, we are very confident, I should add, on this guidance. However, we have now 3 years of extreme variation in meteorological conditions, an experience that we still have to fully, all of us, get accustomed to. You might recall, the first quarter was semi-disastrous in terms of hydro conditions across the geographies. The second quarter, first 2 months, too, the last months of the second quarter was incredibly wet months in some parts, which made the second quarter recover an hydraulicity in at least in Italy and not elsewhere. So we need to put some caution in this variation of hydro conditions across the world, which leaves us to give you this final guidance exactly as we have originally said because we actually need to really get accustomed to this wild climate that is all around us. That's the only reason why we did not basically -- we were not so -- a little bit more bullish on the EBITDA. But that's it. It's just we don't know what climate is throwing at us month after month after month.

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Monica Girardi, Enel SpA - Head of Group IR [21]

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Okay. We go to next. The next comes from the line of Meike Becker from Bernstein.

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Meike Alina Becker, Sanford C. Bernstein & Co., LLC., Research Division - Research Analyst [22]

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I have one left at this point. It's with regard to renewables in Italy. What do you think needs to happen for Italy to achieve its renewables target? Specifically, the ambitious-looking solar target when we consider that project sizes might actually be very small to constrain regarding demand.

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Francesco Starace, Enel SpA - CEO, GM & Director [23]

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Basically, the 30,000 additional megawatts that seem to be necessary to make Italy achieve the goal seems a lot. But if you look at the fact that it's a time period of about 10 years and the 26-and-odd-thousand megawatt that Italy has installed in the past was basically achieved in a time period which was between 4 and 5 years. So from a physical standpoint, yes, it can be done. From a space-constrained standpoint, we're talking about roughly 90,000 hectares, which seems a lot of space. But when you look at it, it's not impossible.

You're right, this is not going to be made of a few small -- large plants, but a lot smallish plants which, by the way, is the way in which most things happen in Italy. So it's totally in tune with what the country spirit is. Actually, we see a likelihood of this target to likely be exceeded than met. And we see maybe a little bit more difficulty in achieving the wind target where the constraint on landscape and space might be playing a bigger role. So what needs to be happening is basically the first auctions to take place, the first price is to stun everybody. And the second auction to take place, the prices to go a little lower. And then the market will pick it up from there. And this is what happens all over the world. I think it might happen in Italy in the next 2 to 3 years.

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Monica Girardi, Enel SpA - Head of Group IR [24]

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Okay. Next question comes from the line of Roberto Letizia from Equita.

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Roberto Letizia, Equita SIM S.p.A., Research Division - Analyst [25]

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I would like to come back to the very first questions on the possible acceleration in the coal or generally, the thermal plant phaseout. I think we don't need to wait the Capital Market Day to understand that you are accelerating on that point. I have a residual question on that, would it be possible that considering the current load profile of selected plants and the level of current CO2 prices in the market that lets some plants to be closed earlier would actually end up to be EPS accretive, considering the appearing -- or the depreciation of probably nonproducing assets, and if the answer is yes, would it be that material what you can benefit on the net income with this respect? And the second very quickly, can you please comment at the bidding of very low prices for the solar in Portugal and the market mentioning around EUR 14 per megawatt hours. Can you comment on that? And give us a picture of is this going to be the future of the prices for those type of tenders?

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Francesco Starace, Enel SpA - CEO, GM & Director [26]

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Let me answer the first -- the second question and Alberto will answer the first. On -- we've seen these prices. We've seen also some of the players that won on those prices that notably were people that were complaining about prices twice the amounts of these prices being low. So it's nice to see the world changing ideas on the same subject so quickly. But this is what technology brings to the table, and it exactly connects me to the previous question of Meike's, this is going to happen. God knows what the numbers would be elsewhere. Scale is an effect, and solar radiation is another.

But this technology is very competitive. There's evidence of that around the world. So I don't want to predict what the prices would be, for example, in France or in Italy next time, but they -- a lot of people will say they're low. We stopped judging other people pricing and look only at what we can achieve. And I think this Portugal tender is another additional proof of the trend that is starting to become quite common around the world. I'm not surprised at all. On the comp stuff, maybe Alberto.

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Alberto de Paoli, Enel SpA - CFO [27]

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Well, first of all, possible selection of plants. So it's not a mystery that every year, we do an assessment on all our assets to understand what is the best way to manage a plant. So to run the plant, to shut down the plant, to sell the plant or every asset. So right now, we have already run more than EUR 8 billion of asset rotation. So we sold EUR 8 billion, and we bought EUR 8 billion. So asset rotation is everything -- something that we do every time to increase the value in our results. So the answer is clearly yes.

Now this -- in this scenario, things are moving faster. Coal is going up and down, and CO2 prices is increasing, increasing, increases. Levelized cost of energy is going down and down, down. And it is not a mystery that shutting down a coal plant in Chile is something that has been already in our strategy because we have already announced that under the PPAs we have for the -- for others, 10 years; for us, it's better to shut down coal plant and to develop new solar and wind plants because the levelized cost of energy is lower than the variable cost of coal. So the answer is, yes.

On the other side, I would say, if you look at what we have already done in Chile because we have depreciated the asset for roughly EUR 370 million, this will give already next year an impact in EPS accretion. And because of the reduction of the value of the asset and the development of renewables that we have run, so the time in which we will shut down the coal plant, we will not have any impact in terms of EBITDA and EPS because they're shut down and now we are gaining before on the impact on higher EPS coming from this. So the answer also in this case is yes.

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Monica Girardi, Enel SpA - Head of Group IR [28]

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Okay. Next question comes from the line of Javier Garrido from JP Morgan.

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Javier Fernandez Garrido, JP Morgan Chase & Co, Research Division - Head of Utilities and Senior Analyst [29]

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I think just 2 questions left from me. Firstly, if you can update us on the strategy for Open Fiber and where do you think you may find a compromise in your conversations with Telecom Italia?

And second question is on the debt. I mean you are buying another 5% stake in Enel Americas. And there are sort of moving parts, if you could update us on where you see net debt by year-end.

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Francesco Starace, Enel SpA - CEO, GM & Director [30]

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On Open Fiber, as you know, we have an NDA with TIM. So what I can tell you is just what I can tell you without getting out of this NDA obligations. But basically, it's quite known that there is a logic in some synergies between the fiber and the fiber. So between the fiber that we have, which is increasingly a bigger player than most people thought, and the fiber that TIM has. And now TIM is studying how best to put these synergies to work.

We have been very clear that we have no hurry, we have no rush, we have no burning house. And actually, we also don't want to get into the antitrust loops that an integrated combination might come up with. So we welcome all solutions that don't require large interface or interaction with antitrust authorities in Italy or in Brussels and don't require large regulatory changes that are very unlikely to happen in a decent amount of time. Other than that, anything that speeds up and makes more efficient the cabling of the national system is welcome. And I think it is something that might create value for all the shareholders, that includes us and, of course, our co-shareholders. And I think there's many ways of achieving this goal, and I'm sure that in the next months, some of these ways will become more clear, but I cannot add much more than this at this point.

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Alberto de Paoli, Enel SpA - CFO [31]

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On your second question, I think that you see the second 5% increase because the first one is already included in the debt we have presented before. When it comes to second, remember that we are under some limitation in the acquisition of shares. And all in all, we don't think that we are going to close the second program within the year. So the impact of the second branch is probably -- will come after. When it comes to debt for full year, I would say, first, that we have already almost closed the capital increase because we had a 97% of underwriting, and it is already cashed in, so you don't see in June because we are finishing this in July. And this will go to 0, the 1.1 impact on the first half.

We have other cash in, in the second half. Today, so we got the announcement that we have a green light for the final closing on the rates. That opens up the way to be paid for the first tranche. And we are working because the second tranche will come at the end of the year, so getting the vast majority of the value of the transaction. We are busy in putting this -- minus EUR 1.6 million to 0 in the working capital. I think that -- so we see the debt at the level we said before of around EUR 44 billion. I would stress one important point on this because we are in a big acceleration, if we see opportunities to grow organically higher in renewable, we'll do. This is not something that will change the debt profile but could change the debt profile year-on-year because we can -- we have some -- we could have some acceleration within the year.

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Monica Girardi, Enel SpA - Head of Group IR [32]

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Okay. Next question comes from the line of Elchin Mammadov from Bloomberg.

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Elchin Mammadov, Bloomberg Intelligence - Utilities Analyst [33]

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I only have one question left. The rest have been answered. It's about Enel Americas. I mean you mentioned that the second shift will take a bit over time, but eventually, it will increase your stake to 62%. Now there's been some speculation that Enel Americas might be delisted. How should we think about it? I mean your interest in Endesa is about 70%. Is that the natural ceiling we should be thinking about? Or do you think you're going to go over that for Enel Americas in the long term?

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Francesco Starace, Enel SpA - CEO, GM & Director [34]

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I think that we have, as you know, in Enel Americas as for Enel Chile Limited, which is 65% under the statutes of the company, and I'll recall you that these companies are the direct result of the split of Enersis where this limitation started to surface. So we don't see us going below this -- beyond this 65% threshold because it will require a change in the bylaws of the company. It would be very, very difficult to do. And I think, by the way, not particularly, it might be very complex to achieve in a limited -- in a short amount of time. I think we take a step at a time. I think we will go to -- close to the 65% threshold in progressive tranches, and then we will pause and interact with our shareholders there to see what is their intention in Americas. And they might perhaps want to differentiate their presence in the 4 countries that are below Enel Americas or just be happy to stay like that, and we will respect that attitude anyway.

So for the time being, we have no view of delisting this company or no view of forcing people out. We want to have a constructive relationship with them as we have proved so far. But we want to have more accrual, let's say, of the economic results of Enel Americas where growth is happening, and we want to push that to the maximum limit we can achieve, which is today, 65%. Yes, that's basically the answer.

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Monica Girardi, Enel SpA - Head of Group IR [35]

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The last question from the call -- for the call comes from Lueder Schumacher from Soc Gen.

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Lueder Schumacher, Societe Generale Cross Asset Research - Equity Analyst [36]

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Yes, just one question from my side. It's just on your renewables growth. You don't want to go offshore. You don't like subsidies. You don't make merchant renewables. I just wonder how much profitable renewable growth is there for you? How long do you think you can ever expand the amount of renewable capacity you put in the ground every year? It's truly very impressive. How long can this growth continue? If you can just give us a quick overview of your view on that.

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Francesco Starace, Enel SpA - CEO, GM & Director [37]

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It's true, we are not active in the offshore. It's true we don't like incentives. But even if we like them, they're disappearing. So there's very little we can do about that. It's not true we don't like merchant. Actually, you will see us doing merchant renewables in those geographies where we have a retail customer base, which means basically substituting a double merchant exposure, which is the thermal generating plant, so they have an exposure on the commodity cycle and exposure downstream with a single merchant exposure, which is renewables. So that is something we are pushing in Europe basically because that's what happens today. We see the footprint of renewable energy increasing very rapidly and not shrinking. So we are literally sucked into the space and not pushed. We're not trying to push somebody out.

Just to give you a figure. This year, we will complete 3,000 megawatts. This will be another world record for a single company. But the question is, how big are we in the world added capacity of renewables. And if you look at the overall renewable energy installation that is likely to be the 2019 year, it's something that will be somehow short of 200,000 megawatts, it's going to be like 180,000 -- between 180,000 and 190,000. So we being the #1 are still very small in this huge space. That gives you an idea of how fragmented and how large the potential synergies you can have in this space.

To make a long story short, we see on a 5- to 10-year time frame no limitation in the potential acceleration of growth, even excluding what we still consider a niche, which is the offshore market. So there is no worry at all. Actually, we have always kept a 3:1 ratio between the pipeline and the investments we carry out. So you can imagine that what is the dimension of our pipeline today, it exceeds at 26,000 megawatts on an actionable pipeline. On top of which, we have a 24,000 megawatt, say, long-term pipeline. So it's a total portfolio of investment opportunities of roughly 60,000 megawatts, the one we're managing right now. So we have a very clear view what potential we have in front of us.

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Monica Girardi, Enel SpA - Head of Group IR [38]

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Okay. We have a number of questions coming from the web. Some of them are coming from Oscar Nájar from Santander, guidance for 2019, which I think we have addressed. The situation in Goiás, I think we also addressed. And then we have Antonella Bianchessi asking some questions on the guidance as well. And the only one left is on the retail market opening in Italy. Antonella is asking if we would rule out gradual auction of customers, how we think the market can be open and what are the -- currently the ideas under discussion?

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Francesco Starace, Enel SpA - CEO, GM & Director [39]

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I think Antonella, the auctioning of customers is impossible. The customers cannot be auctioned. They have a right not to be auctioned, and the customer associations have been very adamant on that. You cannot dispose of customers without them consenting. And that's completely a misrepresentation of what everything can -- or what processes are going to be discussed. There's no auctioning of customers at all. There could be, like I said before, a soft landing, which means basically carving out the PMIs that are still in the regulated market and telling them, look, guys, it's the end, you have to go out on the free market. So you will get a letter at the end of the period saying this is it and you're free to go, whatever. But that is going to take out probably less than 1/3 of the volume because most of the people there are retail. And I think on retail, there is going to be some thinking about what gradual ways of slowly eroding this remaining end of the game, not -- certainly not something that I see happening in 2020. That's -- I think it will take more thinking and more negotiation between politicians and with the customer associations. So for us, the most likely outcome is decrease on the volume because of PMIs going out. But long drawn, end of the tariff, in the next years.

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Monica Girardi, Enel SpA - Head of Group IR [40]

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Okay. I think we can close the call here. As always, the Investor Relations team is at your disposal if you need any help, and we really wish you a fantastic summer. Thank you.