Eletropaulo Investment Rationale slide image

Eletropaulo Investment Rationale

Investment Rationale Potential efficiencies Main initiatives • Leverage on global procurement Opex/client¹ benchmark (US$) enel Pension Fund 15 • Alignment in service contracts to Enel's standard procedures Opex/client 65 (excl. Pension Fund) • • Deployment of smart technologies Technical Opex: Convergence towards Enel best practices: • Faults reduction for improved preventive maintenance and investment plan Technical Staff optimization • Efficiency gain for remote control and processes • Commercial Opex starting from the baseline (2017) applying efficiency due to IT and process convergence: • Meter reading service outsourcing Meter reading process improvement • Retail Cost Optimization 1. Values as of December 2017. Original values in BRL translated into USD using an Exchange rate of 3.60 BRL/USD. Source: Internal estimates. 42 Eletropaulo Enel Ceará Eletropaulo real Opex/client evolution (US$) 80 -30% 15 53 8 Pension Fund 65 45 Opex/client (excl. Pension Fund) 2017 2021 7
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