Good evening to all the people connected. Welcome to the first half 2025 results presentation. Enel CEO Flavio Cattaneo will start with the highlights of the period, and our CFO, Stefano De Angelis, will present the economic and financial results. We ask those connected to the webcast to send questions only via email at investor.relations@enel.com. Before we start, let me remind you, media is listening to both the presentation and the Q&A session. Thank you, and now let me hand over to the CEO.
Thank you, Omar. Welcome, everybody. The positive trend is also confirmed in the first half. A 4% net income increase on a like-for-like basis, marking another quarter of growth, driven by our action to reduce risk and secure results. On shareholder remuneration, last week we paid the final 2024 dividend installment, equal to EUR 0.255 per share, with total dividend for last year at EUR 0.477, implying a yield of about 6% at current prices. In addition, as we have already done for Endesa and Enel Américas, today the board approved a tranche of the share buyback program at Enel's par level for EUR 1 billion to be executed starting from tomorrow until the end of December. This is another clear signal we deliver on our promises and optimize capital allocation to maximize shareholder returns. Due to our action, we have improved Enel's earnings profile.
We resolved increasingly the couple from power price volatility, ensuring a lower risk, greater visibility, and enhanced resilience. We also improved visibility on our regulated asset. Our advocacy actions are delivering results. In Italy and LATAM , we have made progress on distribution consent renewal, while in Spain, the proposed framework doesn't provide adequate support for the investment effort required by the PNIEC. We are engaging with the authorities to reach a fair and sustainable outcome. Let's now have a look at the first half result. The group performed strongly across all P&L lines. EBITDA reached EUR 11.5 billion, up EUR 100 million year-on-year, including the perimeter effect. If we take out the exogenous negative effect of exchange rate, EBITDA would have reached EUR 11.8 billion, improving the solid result already achieved last year. Net income came in at EUR 3.8 billion, up by 4% versus last year. Cash generation remained strong.
FFO net debt stood at 25 over the last 12 months. This proves once again our delivery is driven by reliable and organic growth and not one-off. The quarter evolved as expected, and we are executing our strategy and turning into stable and visible results. We are well on track to meet our full year target with net income expected at the top of the guidance range. Now let's move to our strategic priorities. We continue to improve our group risk-return profile. Over 55% of CapEx was allocated to networks, ensuring stability and long-term visibility. 80% of total investment were deployed in Europe, our core markets characterized by low risk. As shown in the slide, industrial KPIs confirm our progresses. A RAB customer reached EUR 658,658, boosting asset profitability. Renewables now account for 73% of total production. Emission-free production now stands at about 85%. Fixed sales covered by renewables reached 93%.
It's worth highlighting our commercial campaign significantly reduced churn in Italy. These results are fully aligned with the plan presented last November. Now we moved from promises to delivery and from delivery to result. As for brownfield opportunities, we made solid progress moving on the next slide. As a result of our selective and return-driven capital allocation, we acquired over 1 GW of renewables in Australia, applying the stewardship business model. We signed an asset swap deal with Gulf Pacific Power, increasing consolidated renewable capacity in the U.S. by 285 MW. In addition, we are at the final stage of negotiation for brownfield asset acquisition in the U.S. and EU and continue to scout other opportunities aligned with our strategic approach. Now move to the other two strategic pillars, efficiency and sustainability. On efficiency, cash cost optimization is on track.
We have already achieved EUR 1 billion in savings, 67% of our improved target for 2027 announced in the last Capital Market Day. This shows our commitment to efficiency without compromising on safety and quality of performance. On financial sustainability, balance sheet flexibility has been restored. Net debt to EBITDA now stands at 2.5x , and we are ready to catch long-term value creation opportunities. Now I'll lend the floor over to Stefano for a deeper dive of numbers.
Thank you, Flavio, and good evening. I start the presentation with some operating highlights. The capacity deployed in the last quarters supported a growing renewable production year-on-year, despite some shortage of resources in Spain for wind and in Italy for water, and the impact from curtailment in Brazil. Having a growing concern on this topic and the sustainability of the renewables shape in the spot market, we continue to deploy greenfield-based capacity, reinforcing our leading position. On storage, that stood at 11.5 GW. Moving to the retail segment, in our domestic market, we anticipated a churn reduction, and we got it thanks to the final execution of the customer's portfolio reshaping and price normalization for B2C and small-medium business.
Last but not least, the strong investment deployed on grids boosted the value of our RAB, which has now reached more than EUR 45 billion, increasing the resiliency of our EBITDA looking forward. The solid operating delivery resulted in a solid set of financial results. I'm now moving to page II. As we have just mentioned, the year-on-year EBITDA expansion is driven by the growing investment in the network segment, coupled with fair sustainable returns. This action applies to the Italian regulatory framework, but we are confident Spain and Brazil will evolve in the same direction. About the net income, it's important to keep in mind that the closing of the disposal of Zlohevsky Elektrane, based on a call option granted to EPH in 2015, generates a negative non-cash accounting loss in 2025.
While during 2024 we have to register the pro quota of deposit in net result achieved by the company. None of these topics has cash impact and was included in our EBITDA or EBIT in our presentation. Instead, the deal generates a EUR 1.1 million net debt reduction that, for rating agencies, impacted positively the adjusted net debt. Finally, our organic, clean, and business-driven financial results translate into a coherent, solid net cash flow that reduced our net debt by EUR 2 billion, resulting in a net debt to EBITDA ratio stable at 2.5x . These results have been achieved, notwithstanding exogenous impacts. That's why on page IX, we have detailed these dynamics. Around EUR 70 million impact from currencies devaluation is mainly associated with Brazil R`` eal. I'm referring, this is important, to the 2025 FX scenario presented at the capital market day, not the year-on-year one that has a greater impact.
It is normally not adjusted by Enel in its results reported ordinarily. In this case, we are referring to the difference from the assumption that was the base of our guidance also in November when we present our business plan 2025-2027. The second impact is the disruption related to the absence of regulation about the TSO operational management of the network system security that generates unexpected negative impacts for EUR 200 million. More in detail, in Spain, as already presented, not just by Endesa, but also by Iberdrola, for example, the blackout caused an increase to the cost of sourcing related to the ancillary services, worth around EUR 150 million, that impacted the retail business. In Brazil, we faced the curtailment of generation on lack of capacity of transmission line or forecasted offer-demand and balance forecasted that are made by the TSO.
Moving into the country-based analysis, I will now jump directly to page XIV, where there is an analysis related to Italy. It is already clear that EBITDA in Italy has to be analyzed separately. Networks have been already commented. It is important to remind that the Italian regulatory framework allows us to use our financial firepower, and the return is visible and fair, also because we are allocating here 50% of our group CapEx, not the segment CapEx, but the group CapEx in these six months. Moving to retail, we had a normalized 2 Q result as guided, but the price reduction of our customer base to align the first quarter 2023 revising at the market condition is still waiting on the semester. The most relevant achievement is the churn reduction in the residential customer base that imply an extension of our customer base lifetime of approximately two years.
Finally, the commodity positions and consequently EBITDA is now moving into a new normal level of profitability and a more linear result in our books. On the following page, we see, and now it is something that we show you in all our presentation of the financial quarter results, our customers and generation business in Italy with the hedging strategy we are applying by approximately one year and a half. As already highlighted in the previous presentation, 2025 is already priced. I am referring to the B2C and small-medium business fixed price volumes of power. For 2026, we have introduced the 2026 because, as I told you again, 2025 is full priced, and this means that the renewable generation is full aid.
For 2026, we have already priced one-thir d of the total volumes expected for 2026, but it's important to keep in mind that the renewable generation is entirely covered by the expected consumption of the segment I mentioned. This means that it is entirely matched with the consumer and small business volumes based on existing contracts, power consumption with fixed price offer. This is why we explain that the power retail contracts are perpetual contracts with the fair and sustainable clause that allows us to change the price of the MW hour. In the case there is a spike in the commodities price, we can change the price. If the price goes down, we will probably have to adjust the price, but it's not something that we have to realize immediately after a change into the wholesale pool market price change.
What we have to manage is the churn of the customers. That's why the lifetime increase is so relevant, because the area of that part of the 2026 that is churn and acquisition means that they have approximately 7% less customers per year, and the customers move into the match, the one with perpetual contract. What I have to manage, coming back to the point, is the churn and the acquisition. The churn clearly is a customer I lost, and I have to maintain the best customers in terms of value with the retention activities. At the same time, I have to acquire new customers. If the price of the market price moves up and down, this will be reflected into the new contracts. This 18% today may have a different pricing in the acquisition phase. I can adjust if I use a promotional price for six months.
I can adjust after one year if the market moves in some direction again, up and down. Sorry to be long, but I think this is quite important to understand the retail business. In the next page, I completely change the topic, and I move to the group net income. This came at EUR 3.8 billion. I will focus just on some specific topics. One that is not mentioned in the blocks, let's say, is the bad debt that has a positive direction, let's say, especially in Italy. We have, I'm sure, also the same movement in Spain, and these are the retail-driven bad debt. When you see bad debt, this also refers to the South American regulation framework regarding the final customer that is served by the network operators.
In this sense, it's always more important to analyze bad debt separately from customers that I have a relation also on price condition and a customer that I have a generation. On price condition that are based on a regulated bid or something like this. The bad debt is just related to the financial condition of the customers. In this sense, clearly, Rio de Janeiro has a performance that is not aligned with São Paulo and so on. This is a point that will be very important into the renegotiation of the concession terms. Another important point is the financial expenses that are down by around EUR 150 million at profit and loss level on the back of, clearly, a change related to the gross debt reduction. Debt account for EUR 9 billion.
When you see the EUR 2 billion reduction in net debt, you have to consider that there is a reduction of EUR 9 billion in gross debt. We have reduced the liquidity and the other, let me say, accounting figures that are related and are accounted as liquidity. Also, because with the reduction of the euro interest rates, I have a spread that is negative when I maintain too much liquidity on my accounts. Let me say, until 2023, this was not so evident. Now it's so evident, we are acting in this way, and we have registered the positive impact on the net income and also you would see also in the cash flow. We have presented also the reported net income. Here, it's important to highlight that around EUR 400 million difference is based mostly on the Slovenské Elektrárne accounting loss that we have to register also.
If it's not completely affecting our cash and our FFO, our net debt. Moving into the FFO, Group's cash generation continued to be strong with an FFO standing at EUR 6.7 billion, once adjusted for the impact of payable change related to CapEx. Cash generated in H1 more than covered the deployment of organic CapEx as well as the acquisition of the hydro assets in Spain, with an FFO minus CapEx being positive for EUR 700 million. The main non-operating accounting items that impacted the debt are the following. Hybrids were positive for around EUR 1 billion, as in general, we issued a new hybrid bond for EUR 2 billion, and in February, we had to repay the EUR 900 million bonds that were already refinanced in 2024. Non-operating cash items related to the Globe Bank in Italy. This was, let's say, a negative accounting pause for 2023 results. The cash impact is.
Registered in this semester, and this was already registered in the first quarter because the payment, if I'm not wrong, happened in February. This refers to the global bank of the 2022, 2023 crisis of the energy market. We have the Eletrop aulo pension fund repayment in Brazil. Another important topic is the payment of the cash out related to the capital gain that was registered in our companies in LATAM for the sale of the Peru, especially the generation business. The tax is paid like in Italy, for example, on the following years, and these have an impact of EUR 0.5 billion in the net cash flow of this first half. It's not relevant after we have commented this impact, but in this half, we have also EUR 200 million related to the first program of buyback from Endesa because, if you remember, this started during the second quarter.
We have the first EUR 200 million that was created, not in our Capital Market Day projections. The net debt related to the comparison between the end of year 2024 and first half of 2025 decreased EUR 400 million. The EUR 2 billion was the comparison in the last 12 months net cash flow value. It's worth to highlight also, you see that we are starting to comment brownfield acquisition. The first one relevant, you remember, was signed also last year when we presented at the Capital Market Day. This is a strategy that was already implemented as direction in our Capital Market Day business plan, as we have already stated, this will be part of the opportunity that we have thanks to the flexible financial profile. The optionality that this flexibility gave to us.
We didn't mention in the presentation, but it's worth to highlight that we have just signed an agreement to acquire 150 MW of a wind asset in Greece to further expand our renewables footprint in Europe. The estimated enterprise value of this asset is approximately EUR 200 million. Let's finalize the presentation with the full-year guidance. Saying that, as I laid at the beginning of the presentation, this year we faced FX and regulation-driven headwinds that resulted in negative dynamics we have been able to offset thanks to resilient and risk-averse business model. We expect these negatives to be fully compensated by the operating performance driven by the delivery of a growing EBITDA by the Greek segments across all the geographies. This means that the results achieved so far and the visibility we have for the second part of the year provide confidence in confirming our guidance.
I hand over to the CEO for some closing remarks.
Thank you, Stefano. The results are strong and consistent. They confirm once again the successful execution of our strategic plan. We are at the final stage of negotiation for brownfield asset acquisition in the EU and the U.S. While we continue to scout the market for value-accretive opportunities in line with our strategic priorities, the business outlook remains positive. We confirm our targets and we are moving toward the top end of the net ordinary income guidance range. Value creation is our guiding star. Organic growth, solid dividend policy, and the new share buyback program will drive robust long-term returns for our shareholders. Thank you for your attention. Now let's move to the Q&A session.
We thank our CEO. Let's now open the Q&A session. We received a lot of questions for the call. We have summarized by topic. Let's start with the most strategic question that will be answered by our CEO. The first one, can you update us on regulatory changes across countries, specifically distribution and hydro concession renewal in Italy, distribution concession in Brazil?
Okay. We're well on track with all advocacy initiatives. In Italy, the budget law already defines the main element of the concession extensions. As for the technicalities, we await the authority resolution. On the either or, there is no urgency. Our concession will expire in 2029, but it should be taken into account the concession of other operators expired in 2010. After 15 years, the auction has yet to be held. In Brazil, the renewal process has already started, and GM and EL published a positive technical note for renewal of Enel Rio. The others are expected by year-end.
Thank you. Second question. You launched the first tranche of the buyback program for Enel S.p.A. What's the expected timing of execution? Do you plan to proceed with the remaining amount?
Regards to Enel S.p.A., execution starts tomorrow morning. Spain moved faster than Italy due to the shorter authorization procedure. All programs are now fully operational with a total firepower of almost EUR 6 billion, including, obviously, Enel Américas. As for the remaining amount, let's first focus on executing this initial tranche.
Thank you. You often mentioned brownfield acquisition opportunities. What kind of assets are you targeting in terms of technology, geography, and size?
As I mentioned before, we are in the final negotiation stage for selected brownfield deals and continuing to scout the market. As usual, we don't disclose details to avoid jeopardizing ongoing talks. Our M&A strategy remains unchanged. No large deals, only low-risk technologies and countries, only the EU and U.S.
Thank you. Are you considering further asset rotation or disposal?
The disposal plan has already been completed. At least there is not an exceptional price. It is not. We don't schedule any disposal.
Thanks. Let's move to questions for the CFO, Stefano. Q1 EBITDA numbers are stronger than Q2. What should we expect for the remaining quarters?
Okay. Let me give you answer the question also even more generally. As you know, we continue to underline the secured attribute of our operational planning and associated financial targets. This approach implies also that we are committed to a baseline, but focused on catching all the additionalities available in efficiency, brownfield asset, new business like the connection asset, or the data center we described in the Capital Market Day. This approach allows us to offset the headwinds faced in Q2 2025 and to execute a significant portion of the announced share buyback programs. Set this tone, Enel Business Portfolio has progressively recovered the weight of networks in the group EBITDA. In the second quarter, we are landing on a 40% share. I am moving to the guidance. If we confirm the guidance, it means that we are projecting the same approximate EBITDA of the first quarter, EUR 11.5 billion.
I am telling you that this target will cover the negative effects scenario in the first half regulatory headwinds. I also tell you that networks will confirm the 40% share in the second half of the year. This means that I am pointing to EUR 4.5, EUR 4.6 billion for networks' EBITDA in the second part of the year. In terms of geographic contribution, we will see a slightly growing share of LATAM versus Europe. This will also be driven by the greater RAB in CapEx that we are planning to perform in the domestic market. That will benefit the full year 2025 RAB expansion in Italy. Moving to the integrated margin, we have a more mixed evolution. Retail business in Italy will confer the floor that I set in the first quarter when I was talking about the first half expected performance.
This average EBITDA per quarter is a baseline, as I was saying before, and we are working clearly to improve these results. This EUR 700 million EBITDA per quarter retail in Italy is the baseline concept I've described before. Staying in Italy, generation, both renewable and conventional, will confirm the result observed in the first half. While wholesale and commodity trading will balance the first half seasonality, traditional highest results in the second part of the year. Moving to Spain, we expect a stronger second half, as already shown in 2024. The top of range EBITDA guided by Endesa implies EUR 1.9, EUR 2 billion EBITDA for the second half of 2025. The rest of the world is expected to have a more linear execution with micro continuing to affect the growth potential.
As I said before, we are projecting a higher exchange rate scenario for the remaining part of the year when we compare to the Capital Market Day, more in line with the first half trend. Finally, in the U.S., we have a positive underlying evolution of the business. This is what we expect in the second half compared to the first part of the year. Keep in mind that when we compare year-on-year, the second half performance has a non-linear higher tax incentive that was booked in the second half 2024. Wow.
Thank you, Stefano. Next question. Net income guidance has been confirmed, but H1 results point to a higher landing point for the full year. Are there some negative items to be expected in the second part of 2025?
I will try to make the same exercise that we made for the EBITDA, but the difference is that, as you see in the presentation, we are seeing the net income moving towards the upper end of the guidance. This is also because don't forget that when you have an Enel business represented by the FX, when you arrive to the EBITDA, you have just a positive number in front of you that is discounted by the FX impact. When I move to the net income, I have also the depreciation, the impact on the net financial expenses. I recover some part of the negative impact in the EBITDA to positive impacts that I have in the other part of the balance sheet that reflects into the P&L. That's why we have also this plus one, plus four year-on-year change.
Coming back to the question, if we go through the P&L, what we can expect, the DNA will, let me say, organically grow in the second part, but slightly grow because this is the, let me say, activation of the new asset where we were investing in the precedent quarters. Let me say, if we have EUR 8.8 billion in the second half of the year, this is, let me say, organically the trend of depreciation that we can expect. In the financial charges, we, again, may land into a range of EUR 2.8- EUR 2.9. In this, let me say differently, in what is financial expenses on debt, it will be flat. Some minor increase in the fourth quarter for the share buyback impact. When we move into the financial charges, here we have also the impact of other, let me say, also accounting values and figures.
Again, if you want to stay into a secured number, EUR 2.8- EUR 2.9 is the good number for the second half. Tax rate, you may consider the 29%. For the minorities, you have two different impacts. You have, as I was saying before, guiding the EBITDA. We expect a slight recovery also in terms of weight into the P&L of the group of the LATAM. You know that in LATAM, we have the highest minority in terms of geography. This will impact, let me say, negatively on the minorities. If in the first half we have EUR 700 million, we may expect to stay into the EUR 800, maximum EUR 900 million. Higher the minorities means that higher is the results from LATAM. Let me say it's not necessarily a negative impact. Keep in mind that we will also benefit from the Endesa share buyback effects.
It means that we will exclude from the minorities the part of the net income of Endesa that today is in the 30% of the minorities share. This is not, let me say, an irrelevant number. This will more than cover the negative impact in terms of financial cost to sustain the buyback for Endesa.
Thank you, Stefano. Do you see power demand inflecting? What could be the impact on your business?
Starting from the American continent, let's say, where we see the, let me say, the more positive trends both in the north part, namely in the U.S., in Canada, we have a positive trend. All the discussion about the data centers is clear in your mind. When we move to Brazil, that is the biggest country in South America, you see also the impact of the demographic dynamics. This helps the demand to grow. We clearly see a growing demand in the Americas. When we move to Europe, in Spain, accordingly also with the GDP, today showed that Spain is one of the, let me say, best performing in Europe. Also, the energy demand is growing 3%- 3.7%. Depending on the month, you know that there are adjustments for the temperature, let me say, but it's clearly a positive dynamic.
When we move to Italy, we have, let me say, a flattish situation, not inflation, but a flattish. The problem is that it's not what we were forecasting in the last 10 years. We were also expecting the electrification of the consumption, etc., etc. Differently, we have, let me say, a flattish trend. It seems that it's very difficult to find a way to increase, probably in Italy especially, an elasticity. If the price will normalize in the forecasting quarters may be expected as an impact. Net net, we do not see any inflection, let me say. We see a growing trend in Spain. We see a flat Italian consumption, more influenced by the temperature. For example, in July, we made the record month for Italy, but this was related also in June to the highest temperature recorded for the month of June.
Let me say it's still flat with impact that are more related to situation, specific situation, weather, and something like this. Not a worry. We are not worried for this. Let me say it's an option that today we are not betting on a growing Italian market in terms of power demand from residential customers that will grow 10% for the, let me say, electronic vehicles. We are very, as always, very prudent in this. We want to have a target that is influenced more by our managerial action than from something that is exogenous.
Thank you. WACC reset for Italy is expected by the end of this year. Which is the level of WACC expected at the moment? Are changes in the parameters of the formula triggering a decrease?
Technically speaking, the period 2022-2027 is divided into two sub-periods: 2022-2024 and 2025-2027. Mid-term review already materialized at the end of 2024, resulting in the present 5.6%. That was slightly below our projection, but again, you see that the baseline approach worked because we have not any significant change when we refer to the guidance, to the target we have on network. Also, because we have some positive impact. If the work is changed, it means that you have also additional profitability that may come from the OpEx, from the other variables that enter into the dynamic of the EBITDA. At the same time, for example, if you have, as it happened, you have the inflation adjustment that may more than compensate this slightly change in the work.
Coming back to the question, to be precise, an update of the work within the sub-period, Mayor Cori, noted that there is a sort of trigger event, a variation of 30 basis points or more. Today, we do not see this in the figure that are based on the European sovereign bonds and the other variables. We are clearly full on track to observe if there is any change. Also, because if we perceive that there is the potential change in the work, we immediately move to find something that may compensate any negative impact, as always.
Thank you, Stefano. Could you please provide an update on hydro production expected in Italy for the second part of the year?
In 2025, the water availability indicator in central and southern Italy was closer to the historical average, resulting in a better level of reservoir compared to the previous year. This is mainly associated with the explicit request from Sardinia and central Italy to optimize water consumption in spring on the back of an expectation of a dry summer. To the point that this is not a fully regulated asset, but we are not in the condition to manage the water just for economic or financial target. It's, let me say, a resource that is managed jointly and looking at the sustainability, also environmental sustainability, and also the other variables that is correct that enter into the use of the water.
Thank you, Stefano. EBITDA in Italy is down year-on-year. Could you please go deeper on the dynamics?
In Italy, the negative results that we have, let's say, commented in the last four quarters, I got. The two main negative dynamics. I would say, also famous reposition of the customer base. As we always state, we have to change completely the tariffs for the customer base because we found, let me say, an out-of-market standard situation. We were losing a lot of customers. We have to adjust. This was not just adjusting the price. The warranty strategy was, let me say, turned around. This is something that has been completed. It was just time that we need. Now the base is reshaped and repriced, and this is based on a mutually fair economic condition and also distinctive competitive attributes. We want to move to a beyond commodity multi-service platform concept, not just a competition based on promotion, on pricing.
As already commented, if you want, we already expected this dynamic. I also guided the target of the EBITDA for retail in Italy for the second quarter, just to show we were under control of the situation. Now we restart from this level of EBITDA that was set as minimum average quarter result of EUR 700 million. Differently, on the generation, we faced, let me say, something that is typical of the business. There was a decrease of resources in the hydro generation that normally happen. May be better or not. We have some decrease of the resources in the hydro generation. However, having services, customers, and users maintaining an affordable and fair pricing.
The negative impact on the gas, we'll say, hedging, will continue to, let me say, have a negative impact on the year-on-year comparison because this is also part of a different approach on something that is not in the core business of generating and selling energy to our customers. We are reducing the weight on, let me say, wholesale trading on commodity. Finalizing, these negatives have been partially offset by the strong performance of grid, and thanks to the, keep in mind, the higher investment deployed and the efficiencies used to compensate these expected temporary negative impacts on especially the retail and all that is not part of the core business of the utility Enel S.p.A.
Thank you, Stefano. Enel recently approved a positive tariff adjustment. Could you please elaborate?
Yes, it was, let me say, this is regarding adjustment for the existing Brazilian regulatory frameworks. It was not a surprise. It was approved for São Paulo, where we have an increase by almost 14%. Keep in mind that in Brazil,
the Selic, that is, let me say, the base interest rate, is 15%. We are not happy, but that's why I say we were expecting this adjustment. This will take effect from July 4th. It will be visible and it's part of the recovery from Latin America grids EBITDA that I was commenting before. I can also share the detail, but this is a 13.3% increase within the low voltage network. It's approximately 16% in the high voltage. These are details that, if you want, the IR department can share with you.
Thank you. In the half, the impact of currency devaluation was EUR 280 million year-on-year. What should we expect for the rest of the year and compared to the plan assumption?
As we discussed before, the EUR 280 million is, let me say, organic, partially organic, because it's clear that we plan our long-term target financial targets, having in mind that for the Latin American economies, you have to keep in mind and put in your figure that there is a devaluation. What happened this year is that we have also, let me say, something that may not be necessarily structural because we have the appreciation. In three months, the strong appreciation of the euro against the U.S. dollar. The U.S. dollar is the currency that drives the South American currencies. We had, let me say, a not structural impact related to a dynamic of the euro that was just against U.S. dollar. It was not because of South America. Part of this spike should be recovered when we look at the full year compared to the capital market day.
We had, let me say, a more positive scenario for the Latin American currencies. Now that we have restated our guidance, we have updated this scenario. We have a scenario that is in line with the projection that the forecast that you have today, also in our books for the start of the year.
Thank you. Do you expect to record any impact from the blackout occurring in Spain?
For now, we have a negative impact for the cost of the auxiliary services. This is part of the—I don't know if the investors and analysts know that this cost in Italy, for example, is booked by Terna. In Spain, this cost is booked by the company that's in the cost of sourcing. That's why we expect in the second part of the year to not have this impact because sooner or later, either this trend disappears or we have to consider this structural cost of the service, and we have to increase the tariffs. As is normally in each segment, in each sector where you sell something, you have to consider the cost of the service or the product. Moving back to the blackout, normally the blackout is something that you should understand what happened from the DSO.
In Spain, we have this situation that is not clear exactly what happened. Endesa was never mentioned as a potential operator that had any relation with the blackout. We could have the action from the customers of Endesa, and we didn't receive anything significant, let me say. We didn't have any—the question is for impacts in the books. We have not reason to put today a figure as a potential liability related to the blackout because we do not have, let me say, the complaint about this. We do not have any evidence that Endesa could have a responsibility in the blackout.
Thank you. There are no more questions. The Q&A session is over. We covered all the main topics. If something is missing, the IR team is available for follow-ups after the call. Thank you to everybody.
Thank you. Bye.