2007 Results And 2008 2012 Business Plan

Enel SpAInvestor Relations

2007 Results2008-2012 Plan

“Consolidation, Growth and Financial Stability”

London, March 13, 2008

1


Agenda

• Opening remarks

• 2007 results

• 2008-2012 strategy

• 2008-2012 plan

– Domestic Market

– Domestic Generation & Energy Management

– Domestic Infrastructure & Network

– International

– Iberia & Latin America

• Questions and answers

• Annexes

2


Consolidation, growth and financial stabilityOpening remarks

• Cash-flow from operations

• Net portfolio optimization

• Capex

• Financial charges

• Dividends

2008-2012 key figures (€bn)

+63

+11/15

-37

-14

-15

Stable dividend policy of 49€c/share8/12€bn net debt reduction

Net debt/EBITDA < 3X by 2012

3


EPS CAGR2 2007-2012: 10%Net debt 2012: 45-49€bn

2009 2012

1. Ordinary income only2. On a like for like basis

Financial targets

• EBITDA

– Italy

– International

• EPS1

• 13.8€bn

– 6.9€bn

– 6.9€bn

• 62.3€c

• 16.6€bn

– 7.0€bn

– 9.6€bn

• 83.0€c

Opening remarks

4


Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan

– Domestic Market


– Domestic Infrastructure & Networks

– International



• Annexes

5


Financial highlights: consolidated

FY06 FY07 %€mn

2007 results

1. Including capital gain raising from Wind-Weather share transaction for 263 €mn2. Net of discontinued operations

Revenues

EBITDA

EBIT

Group net income

Net debt

38,513

8,019

5,8191

3,036

11,690

43,673

10,023

6,990

3,977

55,7912

13.4

25.0

20.1

31.0

-

6


From EBIT to net income

FY06 FY07 %€mn

EBIT

Net financial charges

Interest charges

Financial income

Fair value of Acciona put option

Other

EBT

Income tax

Net income (including third parties)

Group net income

EPS (€)

5,8191

651

577

-

-

74

5,168

2,067

3,101

3,036

0.49

6,990

902

1,390

(301)

(136)

(51)

6,088

2,002

4,213

3,977

0.64

20.1

38.6

-

-

-

-

17.8

(3.1)

35.9

31.0

30.6

2007 results

1. Including capital gain raising from Wind-Weather share transaction for 263 €mn

7


EBITDA evolution (€mn)

359 51

9182.380

3.418

3.726

3.157

3.541167

325

8,019 +158+384

+308

+1,462 -30810,023

1. Including intercompany adjustments

Market

FY06 Market G&EM I&N International S&H1 FY07

G&EMI&NInternationalS&H1

2007 results

+2,004

8


EBITDA evolution: domestic market division (€mn)

2007 results

FY06 Regulatedmarket

FY07Freemarket

Other &non-recurring

167

+108

+132 -82

325

+158

9


EBITDA evolution: domestic G&EM division (€mn)

2007 results

FY06 Generation margin

FY07Fair value bilateral contracts with SB

Non-recurring

3,157

+328 +103 -47 3,541

+384

10


Fuel cost evolution

306.7

Oil (€/ton)

300.8 27.5

Gas (c€/mc)

26.9 58.6

Coal (€/ton)

68.8

51.8 49.3Average fuel cost (€/MWh)

2007 results

FY06 FY07

FY06 FY07FY06 FY07 FY06 FY07

-5%

+17%-2%-2%

11


3.4183.750 3.726

EBITDA evolution: domestic I&N division (€mn)

+308

3,418

+332 +61 -85 3,726

FY06 Electricity FY07Gas Non-recurring

2007 results

12


EBITDA evolution: international division (€mn)

+1,462

235

926180

186

389

587

680

16

7107

-15

IberiaSouth-Eastern Europe (SEE)CentrelRussiaAmericasFrance & Belgium

918

+691 +6

+198

2,380

+9

+573 -15

FY06 Iberia FY07Russia AmericasSEE Centrel France& Belgium

2007 results

13


EBITDA evolution: services & holding1 (€mn)


-308

359 -240

-23-45

51

FY06 Import FY07Non-recurring

Other

2007 results

14


Wind Mini-hydro

OtherGeothermal

Focus on renewables1

1321 1530

588

857671

67847

46

2,6263,112

+18.5% +10.8%

782 40 46 868

+11.0%

Capacity (MW)

FY06 FY07

3,910 4,958

1,2441,293

5,1955,269

327308

10,676 11,828

FY06 FY07

Production (GWh)

EBITDA evolution (€mn)

FY06 FY07Italy Interna-tional

2007 results

1. Excluding large hydro and Endesa

15


Net debt evolution (€mn)

1. Including 301€mn capital expenditure of Endesa Europa2. Including net debt of acquisitions3. Continuing operations: -55,791€mn; Discontinued operations: -1,725

December31, 2006

CapexCash-flowfrom

operations

Extra-ordinaryactivities

TaxesNetfinancialcharges

Dividends December31, 2007

-11,690-5,2301

+9,130

-43,4792

-1,677-1,390

-3,180 -57,5163

+45,826

2007 results

16


2007 dividend (€c/share)

On the results of 2006 2007

49 49

2007 results

17


Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan

– Domestic Market



– International



• Annexes

18


A clear and consistent strategy

Strategy overview

• Retain market leadership in Italy in a liberalising market

• International growth through acquisitions

• Improve operational performance through investment program and efficiency

March 2006Priorities for 2006-2010

March 2007Priorities for 2007-2011

• Leadership in the domesticmarket

• International growth

• Operational excellence

• Environment and innovation

2008-2012 strategy

19


Consolidation, growth and financial stability

Strategic priorities

An

integrated

international

energy

group

An

integrated

international

energy

group

2008-2012 strategy

• Leadership in core markets• Leadership in core markets

• Vertical integration• Vertical integration

• Operational excellence• Operational excellence

• Growth in renewables and nuclear• Growth in renewables and nuclear

• Consolidation and valueenhancement of new acquisitions


20


• Investment in new capacity: CCGT generation increases 24% by 2012

• Cleaner, more balanced production mix

• Opportunity to grow gas market share

• Leadership positions in Spain and Latin America

• Close working relationship with Acciona

• Strong earnings growth potential

Endesa update

Latin America

2008-2012 strategy

Overview

Spain

• Strong demand growth in liberalising markets

• Need for new capacity

21


Russia update

2008-2012 strategy

• Upstream gas: 40% stake in SeverEnergya

• Power generation: 59.8% stake in OGK-5

• Supply: 49.5% stake in RusEnergoSbyt

• GDP growth

• Liberalisation on track

• Domestic market price increasing

Opportunity to improve existing capacity

Highly attractive market

First vertically integrated presence in the sector

• 2.2€bn investment in the period 2008-2012 in generation and upstream gas

Strong growth potential

22


23.2% 22.1%

10.0%

29.1%

14.7%22.5%

20.3% 10.9%

5.1% 5.4%8.1%

28.6%

35%

65%

Balanced activities

Group production mix2012 EBITDA Regulated and unregulated businesses

2006

CoalCCGTOil & gas

NuclearOther renewablesHydroNetworks

Generation & sales

2012

2008-2012 strategy

335.0 (TWh)131.4 (TWh)

23


Upstream & midstream gas integration

Midstream

Gas supply

Upstream

Total 2008-2012 cumulated investment : 1€bn

2008-2012 strategy

Strategic lines 2007 achievements Further targets

Participating in E&P projects

Developing transport, storage, and re-gasification capacity projects

Ensuring long-term gas supply

SeverEnergya

GALSI development

Additional gas supply from Algeria

• Opportunities in identified target areas

• LNG terminal in Sicily• Storage capacity

• Gas supply for OGK-5• Additional LNG supply• Supporting international

growth

24


472

1,602

2007 2012

Strong investment plan of 6.8€bn in totalEBITDA CAGR 07-12: 12.4%

2008-2012 strategy

Renewables (MW)

504

2007 2012

Total capacity (MW)

1,707

4,752

837

47

86

1,530

857

678

2007 2012

3,112

7,382

South-EasternEurope

France

North America

Latin America

Italy

Iberia

OtherGeothermal

1,536

2,781

2007 2012

80

467

2007 2012

664

1,131

2007 2012

360

897

2007 2012

Wind Mini-hydro

25


Nuclear

2008-2012 strategy

Participation in the Cernavoda project fortwo 750MW units

TechnologyCANDU 750MW

Romania

Endesa’s nuclearpower plants 2,441MW

TechnologyWestinghouse-PWR1,000 MW

Spain1,2

EPR agreement with EDF

Anticipated nuclearcapacity

TechnologyAreva-PWR 1,600MW

France

SlovenskeElektrarne’snuclear powerPlants 2,050MW

Development of Mochovce units 3 & 4

TechnologyRussian-PWR 440MW

Slovakia2

Presence in leading technologies for nuclear generation

1. Endesa consolidated proportionally (67.05%)2. 2007 figures

26


21,206

16,038

2008-2012 strategy

Cumulated investment in innovation: 0.6€bnCumulated investment in renewables: 6.8€bn1

Investment plan (€mn)

Cumulated 2008-2012

5,047 4,9754,147

2,921

3,479 3,0502,855

2,727

4,115

3,928

2008 2009 2010 2011 2012

8,043 8,526 8,0257,002

5,648

Maintenance Growth 37,244

1. Excluding large hydro and Endesa

27


Portfolio optimization

2008-2012 strategy

A wide range of assets available for optimization

Estimated value

11/15 €bn

2008

2008

2009

2012

Expected completion

• Disposal to EON• Disposal to EON

• Non-strategic networks• Non-strategic networks

• Renewable business• Renewable business

• Potential add-on investments

• Potential add-on investments

28


• Opening remarks

• 2007 results


• 2008-2012 plan

– Domestic Market



– International



• Annexes

Agenda

29



• Leadership in the free energy market

• Group margin protection

• Excellence in customer service

• Innovation

• Leadership in the free energy market

• Group margin protection

• Excellence in customer service

• Innovation





2008-2012 plan - Domestic Market



30


154 173225

278

895440 43

4445

12481

62

337

2006 2007 2009 2012

340358 377

Enel the main driver of growth in the free market

2006-2012 electricity free market1 evolution (TWh)

Self-consumption and losses

Key market drivers

1. Source: Enel’s estimates

• Full market opening as from July 2007

• Capability to reach and manage multi-million client portfolio

• Dual Energy and renewable energy

+1.9%

Captive market

Eligible market

Free market


31


Electricity market evolution 2006-20121

Number of customers (mn)Electricity consumption (TWh)

Free marketEligible market

Self consumption and losses Captive market

1. Source: 2006 volumes = Terna; 2006 customers = AEEG; 2007-2012 volumes and customers = Enel’s estimates

154 173225

278

12489

54

-40 -43 -44 -45

81

62

297

~48% ~41%~28%

297

2006 2007 2009 2012

314 332

~16%

2.7 9.819.0

33.026.3

18.6

0.77.3

27.4~99%

2006 2007 2009 2012

~92%~73%

35.4 35.7 36.1 37.6

~50%


32


2007-2012 gas market evolution1,2 (bcm)

21.5 22.4

30.5 31.5

20.7

28.0

1.21.22.1

1. Excluding gas burnt for thermal generation2. Source: Ministry of Economic Development and Enel’s estimates

50.8

2007 2009 2012

53.2 55.1

Other uses

Residential market

Industrialmarket

Renewed interest in dual energy


33


13.6 15.3 15.3

28.6

56.9

81.8

2007 2009 2012

Gas (bcm)

2007 2009 2012

7.2

9.2

4.9

• Selection of market segment consistent with strategy in power market

• Dual energy offer sustains customer retention

Fast selective growth of customer base

Enel’s targets in 2012

Electricity free market1 (TWh)

42.2

Retail & BusinessEnergy intensive

• Strong increase in SME and residential portfolio

• Reduced sales to Single Buyer

• Excellence in service quality

Electricity regulated market (TWh)

2007 2009 2012

61

33

102

• Volume decline in line with Enel’sincrease on the free market

1. Including technical losses2. Enel’s estimates

Market share2

82.2% 61.0%

Market share2

82.2% 61.0%Market share2

20.8% 32.8%

Market share2

20.8% 32.8%Market share2

9.6% 16.6%

Market share2

9.6% 16.6%

72.2

97.1


34


Enel’s domestic targets in 2012: electricity free market1

13.6 15.38.6 7.0

15.37.0

52.219.9

40.4

9.5

22.6

0.1

Strong penetration in SME and retail segmentsTargeting 14mn customers

Gas, electric and Dual Energy customers on the free market (mn)

1. Including technical losses

14.1

8.7

4.5

42.2 (TWh)

2007 2009 2012

Residential

Micro & medium businesses (<1GWh/year)Large businesses (1-100GWh/ year)

Energy intensive (>100GWh/ year)

72.2 (TWh)

97.1 (TWh)


35


Enel forward selling 2007-20101

2007TWh

1. Including technical losses~8%; churn 5% per year; Total portfolio as of 22 February 2008;2. Salvaguardia 2007: energy traded between Enel Trade and Enel Distribuzione (August-December 2007)

0.1

19.9

13.5

8.6

7.7

49.8

2008

2.6

31.0

15.3

8.6

11.8

69.3

2009

2.5

30.2

14.7

5.8

-

53.2

2010

2.4

28.7

0.7

-

-

31.8

Business and microbusiness

Industrial

Residential

Large customers

Salvaguardia2

TOTAL SALES


36


Source: Enel’s estimates.

PV evolution (MWp)

128

4

82

18

28

13

2007

17

46

210

2009 2012

Market Share

Leadership in Photovoltaic Market

• Partnership with world leaders in PV production and supply

• Strong incentive schemes

• Large diffusion on final customers

Main drivers

34% 42%40%

PV directPV indirect

Growth in photovoltaic solar energy through Enel.Si


37


Cost-to-serve and customer satisfaction of the free energy market

3725

9

3

20

6

7

89

0

5

10

15

20

25

30

35

40

45

50

0

1

2

3

4

5

6

7

8

9

10

Strong focus on cost-to-serve reduction whilst improving customer satisfaction to

best-in-class level

Customer satisfaction (1-10)Cost to serve (€/customer)

46

3123

Personnel costsExternal costs

2007 2009 2012


38


Free energy customers (mn)Acquisition cost (€/customer)

4.5

14.1

8.729

32

50

0

2

4

6

8

10

12

14

16

0

5

10

15

20

25

30

35

40

45

50

Acquisition costs in the free energy market

Efficient use of acquisition channels

2007 2009 2012


39


Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan

– Domestic Market



– International



• Annexes

40



• Investment plan and operational excellence

• Sustained profits

• Innovation

• Investment plan and operational excellence

• Sustained profits

• Innovation





2008-2012 plan - Domestic Generation and Energy Management



41


Repowering

48%

20%18%

14%

CCGT Oil & Gas ST/OCGTRenewables Coal

2.3

3.08.3

0.8

1.1

2.33.0

0.4

Market scenario

Italian energy mix1 (2007) Additional CCGT capacity (GW)

Greenfield

3.1

4.1

3.4 10.6

Source: Enel’s estimates

Dominant role of CCGT technologyPower prices driven by gas/oil prices

2007 2008 2009-2010 (under

construction)

Target


42


Development of the generation mix

• Oil & gas ST/OCGT: ancillaryservices market, price spikes, export opportunities

• CCGT conversion program completed: mid merit technology

• Torre Nord 1st unit in operation in 2008: increase in base loadproduction

• Increasing renewable energydevelopment

24.0% 29.0% 30.0%

30.0%

50.0%9.0%

24.0%

20.0%

45.0%

17.0%

22.0%

CCGTOil & gasCoal

Renewables

Re-powering program on track

CCGT conversion

Clean coal conversion\ Renewables development

2002 2007 Target

<1%


43


Torre Nord development

1st unit in operation in 2008, 2nd and 3rd in 20092 GW @ 45% thermal efficiency

1st unit DeSOx completion 1st dome coal handling system completion


44


Growth in renewables (€mn)

Investments (€bn) Additional installed capacity (GW)

2.7

0.6

1.0

0.6

2007-2011Plan

1.6

3.3

2008-2012Plan

MaintenanceGrowth

2007-2011Plan

0.4

1.4

2008-2012Plan

Positive regulatory frameworkWide portfolio of projects with high return on investment

~1.4 GW of new installed capacity by 2012


45


Innovation

• Enhanced efficiency power plants

• Carbon capture and storagetechnologies

• >400€mn investment in 5 years forpilot and demonstration projects

Building the long term fossil fuel power plant

sustainability

Innovation for renewables

• Advanced photovoltaic solutions

• Concentrated thermodynamic solar

• Geothermal

• 150€mn investment in 5 years forinnovative projects

Zero emission plants by 2020 is not a dream, but a realistic objective


46


CO2

Variable costs1 (€/MWh)

36

65

17

8

CO2 costsVariable costs

53

73

Enel’s balance 2008-2012 (mton CO2e)

40÷45

1. Based on forward Brent = 86.5 $/bbl; API2 = 100.3$/ton; CO2 = 22€/ton; €/$ = 1.44

Clean coal strongly competitive even withvery high CO2 prices

2008÷2012 CO2 position already hedged


ShortageClean coal CCGTExpected emissions Allocations

47


CO2 Emissions Trading Scheme: 2008-2012

• Among top carbon market players

• Competitive sourcing; mark tomarket portfolio >500€mn

• Robust portfolio (75% of expectedCERs without anyapproval/implementation risk)

• Day-by-day portfolio management to minimize carbon exposure

• Post 2012: Enel’s generation fleethedged vs CO2 prices

CERs – Existing projects portfolio (Mton)

56

19 75 ~35

~40

Registered & implemented

To be registered& implemented

Expected Directuse for compliance

Traded onsecondarymarket


48


Coal and shipping sourcing strategy

Coverage of sourcing needs (%)

~100

70

Coal Shipping

80

50

Coal sourcing diversification

Indonesia

South Africa

Colombia

Russia

USA

Total portfolio – Mark to market > €1 bn

Major portion of mid term needs securedGeographical diversification of coal sources Flexible and competitive shipping sourcing


2008 2009 2008 2009

49


Power sales & trading

Trading deals in European power markets(TWh)

Sales coverage (%)

~80

2006 2007 2008

~140

~300

Increasing business opportunities

2008 2009

>50

100

Strong protection of generation margins


50


Targets

2008-2012 Enel additional installed capacity (GW)

Renewables

Coal 1.9

1.4

Maintenance Growth

2008-2012 total capex = 6€bn

80%

20%

• Thermal production

• Thermal variable cost

• Renewables production


51


• Opening remarks

• 2007 results


• 2008-2012 plan

– Domestic Market



– International



• Annexes

Agenda

52



• Cost leadership


• Growth in gas distribution

• Innovation

• Cost leadership


• Growth in gas distribution

• Innovation







2008-2012 plan - Domestic Infrastructure & Networks

53


2012

Market share1 80% 80%Market share1 80% 80%

Electricity distributed (TWh)

1. Net of network losses, including self-generation2. Not including gas for generation units

Gas distributed (bcm)

2007-2012 CAGR+2.0%

32 million end-users connected by 2012

3.7 3.54.1

5.0

2007-2012 CAGR+7.4%

2.9 million end-users connected by 2012

Market share2 11% 16%Market share2 11% 16%

Evolution of Enel electricity and gas distribution

2006 2007 2009


255 256

268

282

2006 2007 2009 2012

54


Cost leadership and operational excellence


Opex (€/customer)

Quality of service(min interruption/year)

2002

20042003

20052006

2001 (128 min ; 80 €/customer)80

60

30

2007 (49 min ; 50 €/customer)40

80130

930€mn yearly opex savings vs 2001

55


Network commercial operations


Switching to the free marketEnd users on the free market (thousands)

Commercial quality of service

June 2007 Dec 2007

1,180

1,870

3.8

3.9

2006 2007

# of customer request (mn)Quality index (%)

98.2 98.3

Market liberalization supports steady improvement of commercial quality index

+58%

56


2008-2012 electricity tariff revenues (€mn)


4,3404,180

680510

4,850 4,860

2007 2008

32%24%

44%

Regulated commercialactivitiesDistribution andmetering

DepreciationReturn on RABOpex

2004-2007 2008-2012

~20€bn

7.0%

3.5%

~22€bn

7.0%

2.2%3

1.4%4

RAB1

X-factor

WACC2

1.Beginning of period, including commercial activities2.Real pre-tax3.Applied only to opex and resulting from the weighted average of 1.9% (distribution) and 5.0% (metering)

57


Ongoing operational excellence projects


Work force management

• 5,300 equipped vehiclesin 2008

• Field activityoptimization

• Paperless operations

Work force management

• 5,300 equipped vehiclesin 2008

• Field activityoptimization

• Paperless operations

Power and gas integration

• Staff and activityintegration

• Synergies in IT systems

• Increase in insourcing

Power and gas integration

• Staff and activityintegration

• Synergies in IT systems

• Increase in insourcing

Pegaso “Lean Six Sigma”

• Continuous improvement

• Waste and variabilityreduction

• Focus on value-addedactivities

Pegaso “Lean Six Sigma”

• Continuous improvement

• Waste and variabilityreduction

• Focus on value-addedactivities

Additional 200€mn opex savings from 2009 vs 2006

58


4944 42 41

Quality of service


430€mn quality premia in 2008-2012

183

80

140

50

2007 2009 2011 2012

Min. interruption/customerQuality premia

59


Growth in gas distribution


End-users (thousands)

2,032

2007 2009 2012

2,270

2,920

+7.5%

• Drivers for growth:

– network extension

– bid for new concessions

• More than 4,000 concessions expiringin 2009 in the Italian market

Increase of margins through business development, cost reduction and power and gas synergies

60


Innovation

Smart Grids

• Integration and management of renewables

• Local energy dispatching

• Self-fixing grids

Co-funded EU FrameworkProgram 7 project

Electronic metering for electricity and gas

• Exploitation of remote management of gas meters

• Development of a multi-metering infrastructure

210 mn remote readings>10 mn operations in 2008


61


Targets


50

80

Electric network opex

2009 2012 2006 2007

EUaverage

UKaverage

55 50 50 48

6.7 5.9 5.7 5.4

51%24%

9%

16%

Gas - MandatoryElectricity - MandatoryElectricity – Quality of serviceElectricity – Connections1

2008-2012 total capex = 6.8€bn

1.Average customer contribution: 90%

€/MWh€/customer

Delivery of strong EBITDA results over the period 2008-12

62


• Opening remarks

• 2007 results


• 2008-2012 plan

– Domestic Market



– International



• Annexes

Agenda

63



International

• Consolidation of international presence

– organic growth

– efficiency and integration

• Development of new initiatives

• Innovation

• Consolidation of international presence

– organic growth

– efficiency and integration

• Development of new initiatives

• Innovation







64


Enel’s current positioning ex Endesa

International

Inst. cap. 8.7GWNet prod. 36TWhSales 35TWhGas production 28bcm/y(from 2016)

Russia

BulgariaInst. cap. 660MWNet prod. 3.5TWh

RomaniaDistr. network 53,227kmEE distributed 7.3TWhCustomers 1.4mnMarket share ~11%(supply)Market share ~15%(distribution)

Greece447MW CCGT under development

Inst. Cap. 80MWNet prod. 53GWh

South-Eastern Europe

SlovakiaInst. cap. 5.6GWNet prod. 21.5TWh

Centrel

EPR nuclear project

Wholesalesupplierof electricity 1.8TWh

Renewables 500MW(pipeline)

France & Belgium

Figures as of 2007

Focus on renewables

Inst. Cap. 472MWNet prod. 1.2TWh

North America

65


1.0

Market outlookElectricity demand growth (TWh) Increasing dark spread

International - Russia

CAGR: 2.5%

2008 2009 2010 2011 20122007

1,200

1,100

1,000

900

2.5

2.0

1.5

Gas

2008 2009 2010 20112007

Coal

Fu

el

pri

ce in

dex

• Huge market with dramatic growth potential

• Undergoing liberalization and privatization processin line with expected schedule

• Opportunity to improve existing capacity

• Coal assets in gas-fired regions will benefitmost from deregulation

66


Early mover advantage and reduced risksin a huge, liberalizing market

40% of a JV with ENI20% from 2009 (Gazprom call option)

• 8.7 GW gross capacity, with balanced mix (50% gas and 50% coal)

• 36 TWh generated in 2007, with 100% exposure to Western Russia and Urals

• EBITDA: 99 €mn

• Headcount (#): 4,287

59.8% of OGK-5 49.5% of RusEnergoSbyt

Enel the first vertically integrated energy operator1

o

• At full production, 40%-50% of OGK-5 demand

• Gas reserves: 700 bcm

• Full production: 28bcm/y (2016)

• Partnership with E&P leading companies in a world wide project

• Value of gas reserves in a tight domestic market

• A unique opportunity to participate in the supply sector

• 35TWh sold in 2007

• Strong regional reach with 25 offices and 7 branches

• Customers (#): 249,000

• Headcount (#): ~900

RusEnergoSbytSupply

OGK-5Power generation

SeverEnergyaUpstream gas


1.RES figures refer to 100%

67


1. Figures as of 2007

Overview of OGK-5 assets1

• Installed capacity 2.4GW

• Fuel gas

• Production 8.2TWh

Konakovskaya GRES

Tver Region

Enel owns 59.8% of OGK-5

OGK-5 assets include the largest Russian coal plant

2008-2012Additional capacity: 723 MW

CAPEX: 1.5 €bnProduction: from 38 to 51 TWh


• Fuel gas


Sredneuralskaya GRES

Sverdlovsk Region


• Fuel coal


Reftinskaya GRES

Sverdlovsk Region


• Fuel gas


Nevinnomysskaya GRES

Stavropol Region

Moscow ●


68


CAGR: 1.6%

2008 2009 2010 2011 20122007

28

27

26

25

Market outlook

South EasternEurope

5.6 TWh

1.2 TWh

5.1 TWh

16.3 TWh

Germany

Poland

Slovakia

NordelSystem

Russia

CzechRepublic

Hungary

Interconnection flows Market fundamentals

• Demand growth rate: 1.6% CAGR 2007-2012

• Market prices converging to German ones, Europe’s largestand most liquid market

• High interconnection capacity

• Very low reserve margin after shut-down of old plants; needfor additional capacity

Slovenské Elektrárne

Strategic targets

• Expansion of nuclear capacity

• Hedging generation through long-term selling contracts

• Strengthening our leadership: organic growth and efficiency plan

• Capacity (GW)

• Production (TWh)

5.6

21.5

• EBITDA 2007 (€mn)

• Headcount (#)

• 2008-2012 CAPEX (€bn)

580

6,408

1.9Slovakia - Electricity demand growth (TWh)

29

30

International - Centrel

Figures as of 2007

69


Market outlook

GreeceAlbania1

5.6 TWhItaly

RomaniaSlovenia

Bosnia & Herzegovina

Croazia

SerbiaKosovo

MontenegroBulgaria

Macedonia

Centrel5,6 TWh

• Liberalization, GDP and electricity demand growth

• Progressive entry into the EU perimeter

• Strong need for investments in new capacity (10GW) and interconnections

Market fundamentals

Romania• Integration of Muntenia Sud

• Hedging of retail position through generation assets(coal and nuclear) and replicate Enel’s verticallyintegrated business model

• Renewables: 175 MW of wind (Blue Line)in 2010

Strategic targets

• Growth in renewables (Romania, Greece)

• One import coal or lignite power plant plus one CCGT

Greece - CAGR: 2.6%

2008 2009 2010 2011 20122007

60

50

40

30

Electricity demand growth (TWh)

Romania - CAGR: 2.1%

Bulgaria - CAGR: 1.8%

International – South Eastern Europe

Figures as of 2007

70


500

Market outlook

• Appealing market fundamentals

• Developed and increasingly liquid pools

• High level of interconnection with rest of Europe

• Clear regulatory framework

Market fundamentals

Enel France1

• Sales (TWh)

• Anticipated capacity (MW)

1.8

200

France

Belgium

• CCGT and coal power plants

• Renewables: Enel Erelis (504 MW pipeline of wind generation projects)

• EPR Nuclear participation: Flamanville 3

• Partnership with Duferco for a thermal plant(CCGT - 410MW)

Strategic targets

CAGR: 1.6%

2008 2009 2010 2011 20122007

490

480

470

460

France - Electricity demand growth (TWh)

510

520

International – France and Belgium

Figures as of 2007

71


Market outlook

• Appealing market fundamentals

• Clear regulatory framework

• Wind market growing at double digit annual rates

Market fundamentals

Enel North America (Renewables)• Capacity (MW)

• Production (TWh)

• EBITDA (€mn)

• Headcount (#)

472

1.2

30

224

• 1,130 MW of additional generation capacity, of which:

– 59MW geothermal

– 1,071MW wind

Strategic targets21

314

130

7

BiomassGeothermalWind Mini-hydro

Net installed capacity (MW)

International – North America

472

Figures as of 2007

72


Cash generation through strong financial performances

Financial targets (€mn)

633 763

306454

380

1,219

580

18616

226

109

15

2007 2009 2012

7971,427

2,662

EBITDA (€mn)SE EuropeCentrel

Russia Other

563147

569

305

661

276

132174

3

320

438

280

2007 2009 2012

589

2,231

1,048

Capex (€mn)

5,295 5,373

898 1,699

8,2208,943

970

2,516

5,633

661472

2007 2009 2012

6,766

15,383

18,531

Capacity (MW)

2008-2012: 8.2€bn

International

73


Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan

– Domestic Market



– International



• Annexes

74



Iberia & Latin America

• Solid relationship with Acciona to capture strong potential growth of Endesa

• Reinforce leadership positions in Spain and Latin America

• Integration sales/generation and cooperation Enel/Endesain fuel sourcing

• Implement enhanced synergy plan including establishment of best practices

• Strong focus on renewables

• Solid relationship with Acciona to capture strong potential growth of Endesa

• Reinforce leadership positions in Spain and Latin America

• Integration sales/generation and cooperation Enel/Endesain fuel sourcing

• Implement enhanced synergy plan including establishment of best practices

• Strong focus on renewables




• Growth in renewables and nuclear

• Growth in renewables and nuclear



75


Strong market fundamentals

Iberia & Latin America – Spain and Portugal

236 252 284

15 15 1619

260

• Towards full market liberalization

• Increase in renewable and CCGT capacity

• Decrease in gas/oil and coal

CAGR

5.1%

Energy demand growth (TWh)PeninsularExtra peninsular

2007 2008 2009 2012

CAGR: 3.8%

251 267 276 303

3.8%

Mainland peak demand growth (MW) and reserve margin trend

2007 2008 2009 2012

CAGR: 3.6%

44.9

48.149.6

53.5

1.15Reserve margin 1.111.101.12

42.9

57.959.4

62.0

60.0

High case

Low case

Pool price evolution1 (€/MWh)

1. Capacity payment not included

2007 2008 2009 2012

Market main features

76


Regulatory framework in evolution


CO2 decree

Electricaldistribution

remunerationmodel

Full market liberalization

Main features Implications

• 100% of customers are eligible• Gradual cancellation of regulated tariff:

– June 2008: HV clients– January 2009: MV clients– January 2011: LV clients > 15KW

• ‘Last resort’ model with recognition of real cost of energy

Remain the leading player in the liberalized market

Key issues

• Law proposal will be debated in the Spanigh Parliament• Still to be translated into norms

Common industry position

• Presently: individual remuneration for each distributor with (i) specific efficiency factor and (ii) recognition of specific demand increase

• RAB model regulation approved• Time schedule and process established to implement the

digital metering system nationwide

Positive framework for:• new investments• losses reduction• quality improvement

Capacitypaymentscheme

• Availability• New capacity• Investment in desulphurization

Remuneration needs to increase in order to properly support new capacity

77


Leading and balanced position in generation and sales


• Strong present position:

– 41% total sales market share

– 52.6% liberalized market share

• An efficient sales organisation

• Dual fuel offering

• An increasing portfolio of valueadded services

Endesa total retail sales1 (TWh)

4284 94

8146 49

Free marketRegulated market/last resort

2007 2009 2012

+16.0%

123 130 143

Note: figures relating to 100% of Endesa1. Including peninsular, islands, Portugal and Andorra2. Including pensinsular, islands, Portugal and Andorra. 2007 net of asset disposal

Endesa generation output2 (TWh)

2007 2009 2012

85 93106

+25.0%

78


Investment plan: capacity addition

Generation mix evolution mainland1 (MW)2008-12 capacity: +4,838 MW

6.0%

26.0%

26.0%

21.0% 19.0%

31.0% 29.0%

30.0%

12.0%

Coal

CCGT

Oil & gas

Nuclear

Hydro

64%74%

Pen

insu

lar

Isla

nd

s

3,2001

400

1,238

Towards a wider, cleaner, balanced and flexible generation platform to competitively support

and hedge the sales positionNote: figures relating to 100% of Endesa1. Including Portugal. 2007 net of asset disposal

2007 2012


79


Strong position in CO2 emission rights


2008-2012 emissions and rights1 (mton CO2)

213

127

33

0

5386

Deficit to be covered by

Emission rights assigned

Emissions Rights CDMs2 Market purchase

Projects for 91mtons of CO2 with ERPA contract signed or LoIand price defined

Note: figures relating to 100% of Endesa1. The information included in the slide hereof refers to Endesa’s total generation assets, i.e. including the non-mainland

systems2. CDMs can be used up to 42% of assigned rights (i.e., 53mtons CO2)

80


Leading position in distribution and synergy plan

• After relevant investments in recent years, capex in distribution will focus on

– keeping quality at current levels, better than the Spanish market average

– anticipating market growth: 2008-2012 CAGR = 3.9%

• Execution of the synergy plan


02:25

02:10

01:51

02:02

01:5501:45

02:4402:54

01:37

Spain

Endesa

Distribution – Interruption time (h:mm/year)

2004 2005 2006 2007

Not including transmission

Investments (€mn/year)

Average2004-2007

-22.0%

~900

Average2008-2012

<700

Note: figures relating to 100% of Endesa

• Implementation of the digital metering system

– 13mn meters

– full digital coverage by2015

81


Gas market

• Leveraging on

– strong market growth (4.8%)

– good present position

– existing effective sales organisation

– Dual fuel offering

– ability to source gas competitively

• Opportunities to increase transmission and distribution gas businesses through

– concessions

– administrative authorizations


Total sales (TWh)

31.644.0

49.9

0.10.7

2.3

+47.0%

2007

33.9

44.750.0

2009 2012

Free marketRegulated market

14% 18% 20%Endesa share on total Spanish gas market

Strengthening its current no. 2 position Note: figures relating to 100% of Endesa

82


Targets


2008-2012 capex: 10.3€bn

7DistributionGeneration

Other

36%

7%

57%

EBITDA (€mn)

20071

3,619

4,226

5,038

2009 2012

CAGR: 6.8%

1. Net of asset disposal

Investing for growth

83


Chile, Colombia & Peru – market outlook

Iberia & Latin America – Latam

Chile

Peru

Colombia38.6

81.0

Monomicregulatedprice ($/MWh)

41.6

33.1

2007

2004

2002

36.3

34.5

36.3

2007

2004

2002

29.7

23.6

2007

2004

2002

2007-2012DemandGrowth(CAGR)

6.5%

4.4%

6.2%

2012reservemargin

18%

16.3%

6.4%

CountryRisk (S&Prating)

A+

BB+

BB+

Regulatoryframework

Advanced and stable

Advanced and stable

Advanced and stable

• Favourable country outlook

• Advanced and stableregulatory framework

• Strong demand growth

• Need for new capacity

84


Colombia

Generation• A total of 199MW to be added

Distribution• Sales growth: +6.0% (07-12 CAGR)• Cash cost/MWh reduction: -26%

Colombia



Chile

Generation• A total of 1,480MW to be added


Chile

Generation• A total of 1,480MW to be added


Colombia


Distribution• Sales growth: +6.4% (07-12 CAGR)• Losses reduction: 1.3% (07-12)• Cash cost/MWh reduction: -16%

Colombia


Distribution• Sales growth: +6.4% (07-12 CAGR)• Losses reduction: 1.3% (07-12)• Cash cost/MWh reduction: -16%

• A total of 1,938 MW to be added

• Efficiency and losses reduction programs in distribution

• Considering potential distribution company acquisition

Leadership in the Andean area in generation and distribution


Note: figures relating to 100% of EndesaEfficiency improvement data refer to the 2007-2012 period

85


Country fundamentals

Monomic regulated 2007-2012 2012Price ($/MWh) demand growth reserve

(CAGR) margin

Country risk Regulatory(S&P rating) framework

• Largest market in the region• Strong demand growth• Improving country outlook and regulation

framework



(CAGR) margin


• Largest market in the region• Strong demand growth• Improving country outlook and regulation

framework

New capacity addition and increase in distribution efficiency


Brazil – Market fundamentals and strategy


Endesa plan highlights

Generation• A total of 200MW of hydro capacity

to be added• Consider potential acquisition

opportunities in hydro

Distribution• Sales growth: +5.6% (07-12 CAGR)• Losses reduction: -2.9% (Ampla)• Cash cost/MWh reduction:

– Ampla: -29%– Coelce: -12%


Generation• A total of 200MW of hydro capacity

to be added• Consider potential acquisition

opportunities in hydro

Distribution• Sales growth: +5.6% (07-12 CAGR)• Losses reduction: -2.9% (Ampla)• Cash cost/MWh reduction:

– Ampla: -29%– Coelce: -12%

44.5

37.5

23.7

2007

2004

2002

5.6%1%

BB+ Stable

86




(CAGR) margin


• Economic recovery• Regulatory framework still partially uncertain



(CAGR) margin


• Economic recovery• Regulatory framework still partially uncertain


Argentina – Market fundamentals and strategy


16.1

12.9

9.8

2007

2004

2002

5.0%15%

B+Evolution

under discussion


Distribution• Sales growth: +5.0% (07-12 CAGR)• Losses reduction: -0.6%• Cash cost/MWh increase: +24% vs

2007


Distribution• Sales growth: +5.0% (07-12 CAGR)• Losses reduction: -0.6%• Cash cost/MWh increase: +24% vs

2007

Improving regulatory framework ….opportunities for growth

87


Targets


2008-2012 capex: 6.5€bn

7

DistributionGeneration

Other

36%

7%

53%

EBITDA (€mn)

2007

2,5412,825

3,474

2009 2012

CAGR: 6.5%

Investing for growth

11Peru11%

Chile36%

Colombia19%

Brazil26%

Argentina8%

A total of 2,138MW to be added

88


Best practice sharing and economy of scale savings (€mn)


223

230198

175

404132

282 430

1012

331

7 3116

EfficiencProgramsincludedin the previous strategic plan1

Synergiespresented inLondon on12.12. 20072

Furthersynergies

Total yearlysavings @ 2012 included in thecurrent strategic plan

330

68054 1,064

150 155

97

123

54

216

9454

525

Allocationby business

Allocationby geographicalarea

734 734Furthersynergies

Energymngmt

Distribution

Generation

Procurement

Corporate& other

Corporate& other

Iberia

Latin America

Defined synergies: structured implementation undergoingAdditional synergies: over 30 projects in progress, mainly

in Latin America

Note: figures relating to 100% of Endesa1. Savings net of Europe till 20112. Synergies and efficiencies in 2012 identified through the new shareholder structure. Gross of implementation costs

CapexOpex

Margin increase

89


10.3

6.5

1.00.62.5

3.5

Overall investments

Organic complementary (Greece, Morocco and other markets)



18.4€bn

6€bnM&A

Iberia organic

Latin America organic

RenewablesMiscellaneous

20.9€bn

A new wave of investment

24.4

• Strong financial potential

• Organic growth: 18.4€bn

• Complementary organic growth: 2.5€bn

• Business development: 3.5€bn

• Flexibility

Investment plan 2008-2012 (€mn)

90


TargetsTargets

Ordinary income after taxes andminority interests

6,200

9,491 3,461

2,061


2007 homog 2012

EBITDA (€mn)

CAGR: 8.9%

2007 homog 2012

Double digit income growth

CAGR: 10.9%


91


Enel Union Fenosa RenovablesEnel Union Fenosa Renovables

• Favourable regulatory conditions• Strengthened development organization• Good development record 2007• Good turbine supply platform


Installed capacity more than doubles by 2012

76%24%

Installed capacity (MW) CAPEX: 1,888 €mn

2007 2009 2012

722 1,114

1,794

CAGR: 20%

EBITDA (€mn)

2007 2009 2012

89

202 322

OtherWind

CAGR: 29.3%

92


Enel Latin AmericaEnel Latin America

• Geothermal development in Central America and Chile• Hydro development in Costa Rica, Guatemala and Chile• Wind development in Brasil and Mexico


33%

28%

39%

Installed capacity (MW) CAPEX: 1,085 €mn

2007 2009 2012

664 669

1,131

CAGR: 11.2%

EBITDA (€mn)

2007 2009 2012

119 161

264

WindHydro

CAGR: 17.3% Geothermal

Growth in geothermal, hydro & wind

93


Endesa1

Financial targets (€mn)

5,1466,364

162

264

4,157

119

102

161

44

2007 2009 2012

4,320

5,410

6,789

EBITDA (€mn)

Enel Latin AmericaEUFER2

Capex (€mn)


1. Based on proportional consolidation (67.05% stake). FY07 proforma2. Based on proportional consolidation (50% stake)

Endesa1

2008-2012

18,393

Enel Latin AmericaEUFER2

16,363

1,085

945

94


Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan

– Domestic Market



– International



• Annexes

95


Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan

– Domestic Market



– International



• Annexes

96


Brent ($/bbl)

72.583 75

Coal2 ($/ton)

88.5103

82

1. Consensus figures2. CIF ARA (Rotterdam)

Fuel price scenario1

Strategic annexes - Generation

2007 2009 Long-term(2012)

2007 2009 Long-term(2012)

97


Italian market overview: electricity1 and gas consumption2

Operational annexes

103.9 94.2

207.3

45.9

-7.6-8.7

197.3

45.0

+0.7%

339.8337.5

20072006

Net production: otherImport

Pumped storage consumptionNet production: Enel

Electricity production (TWh)

30.2 28

20.7

34.1

20.6

31.5

2.12.2

+0.5%

84.984.5

20072006

Gas consumption (bcm)

IndustrialThermoelectricOther

Residential & commercial1. Source: Terna electricity statistical data and Enel’s estimates2. Source: Ministry of Economic development and Enel’s estimates

98


EnelOther

42.5

132.1 133.2

120.4 102.5

22.3 39.9

42.7

20072006 20072006

-14.9%

-0.5%

+78.9%

+0.8%

145.0163.1 154.4

Italian market overview: electricity sales1

Operational annexes

Total sales (TWh)

-11.1%

Eligible market2 (TWh) Free market (TWh)

+12.1%

173.1

318.1317.5

20072006

+0.2%

1. Excluding losses on the grid. Other operators’ data are Enel’s estimates2. Including self-consumption and sales to protected customers3. Including dual energy customers

Enel’s free customers3 (thousand)

297.5

1,226.1

20072006

99


200712006

17.2

Enel’s international electricity sales

Operational annexes

Volumes sold (TWh)

+22.8%

53.9

1. Includes proportional consolidation of Endesa in 4Q07

10.8%International sales on Enel’s total sales 27.5%

100


Enel’s gas salesEnel’s gas sales

Operational annexes

2006 2007

4.5 4.9

1. Net of energy dispatched in previous years

Volumes sold (bcm)

+8.9%

2006 2007

2,331 2,462

+5.6%

Customers (thousand)

101


2007 Group installed capacity: breakdown by source and location

MW Hydro

14,401

4,419

2,329

-

6,742

27,891

Nuclear

-

2,441

2,050

-

-

4,491

Coal

4,959

4,687

1,254

581

377

11,858

Oil & gas ST/OCGT

14,084

2,491

-

-

1,388

17,963

Iberia

Centrel

Italy

SEE

Americas

TOTAL

Operational annexes - Generation

Renewables- other

990

1,302

-

91

194

2,577

CCGT

5,962

2,235

-

-

2,547

10,743

102


2007 Group net production1: breakdown by source and location

TWh Hydro

21.2

1.9

4.2

-

9.7

37.0

Nuclear

-

4.1

14.1

-

-

18.2

Coal

28.6

9.8

3.1

3.5

0.4

45.4

Oil & gas ST/OCGT

15.6

1.4

-

-

1.3

18.3

Iberia

Centrel

Italy

SEE

Americas

TOTAL


Renewables- other

5.7

0.9

-

0.1

0.5

7.2

CCGT

23.1

1.9

-

-

2.6

27.6

FY07

94.2

19.9

21.5

3.6

14.4

153.5

FY06

103.9

6.1

15.6

3.1

2.7

131.4

1. 2007 figures include 24.4TWh produced by Endesa and exclude volumes from assets to be disposed of

103


Production mix

Group production mix

CoalCCGTOil & gas

NuclearOther renewablesHydro


23.2% 24.1%

11.8%

29.5%

14.7%18.0%

20.3% 11.9%

5.1% 4.7%8.1%

28.6%

2006 2007

153.5 (TWh)131.4 (TWh)

+16.8%

23.6% 22.5%

30.3%

18.7%24.6%

25.5% 16.6%

6.0%5.4%

26.8%

2006 2007

94.2 (TWh)103.9 (TWh)

-9.3%

21.8% 26.7%

30.6%

28.2%

7.6%

2.5%4.3%

38.9%

34.1%

4.4%0.9%

2006 2007

59.3 (TWh)27.5 (TWh)

+115.6%

DomesticDomestic

International1International1

1. 2007 figures include 24.4TWh produced by Endesa and exclude volumes from assets to be disposed of

104


CO2 emissions vs. allowancesCO2 emissions vs. allowances

40.8

41.0 10.5

6.0

CO2 emissions (mton)

46.8

DeficitAllowances

2006

2007

51.6

Operational annexes – Domestic Generation & Energy Management

105


Enel’s electricity and gas distributionEnel’s electricity and gas distribution

Operational annexes

1. Net of energy dispatched in previous years

2006 2007

255.0 255.8

Volumes distributed in Italy1 (TWh)

+0.3%

2006 2007

12.643.3

+243.7%

Volumes distributed abroad (TWh)

2006 2007

3.7 3.5

Volumes distributed (bcm)

-5.4%

2006 2007

2,023 2,032

+0.4%

End users (thousand)

106


Income statement

Financial annexes

2006 2007 %€mn

Operating revenues

Operating costs

EBITDA

% of revenues

EBIT

% of revenues

38,513

30,494

8,019

20.8%

5,8191

15.1%

43,673

33,650

10,023

23.0%

6,990

16.0%

13.4

10.3

25.0

20.1

107


EBIT by business area (€mn)EBIT by business area (€mn)

Financial annexes

2,205 2,600

2,589 2,833

519

1,494

512

-46

109

-6

Market

G&EMI&NInternational

S&H1

+9.4%

+187.9%

+17.9%

+20.1%

2006 2007


5,819

6,990

108


Balance sheetBalance sheet

Financial annexes

2006 2007 %€mn

Net financial debt

Shareholders’ equity

Net capital employed

11,690

19,025

30,715

55,791

23,789

79,580

377.3

25.0

159.1

109


Debt structureDebt structure

1. Including current maturities of long-term debt2. Including factoring and other current receivables

• Average debt maturity: 5 years and 10 months

• Average cost of debt: 5.1%

• (Fixed+hedged)/Total long-term debt: 51%

• (Fixed+hedged)/Total net debt: 47%

• Rating: S&P’s = A-/A-2 C.W. negative; Moody’s = A2/P-1 C.W. negative

Financial annexes

2006 2007 %€mn

Long-term debt

Short-term debt1

Cash2

Net debt

11,104

1,409

-823

11,690

50,816

8,014

-3,039

55,791

357.6

468.8

269.3

377.3

110


Financial debt evolution

12.31.2005€m

Bank loans – maturities > 12 monthsBonds – maturities > 12 monthsOther loans – maturities > monthsLong-term financial credits – maturities > 12 months

Total net long-term financial debt - Maturities > 12 months

Bank loans – maturities < 12 monthsBonds – maturities < 12 monthsOther loans – maturities < 12 monthsLong-term financial credits – maturities < 12 monthsTotal net long-term financial debt - Maturities < 12 months

Other short-term bank debtCommercial paperOther short-term financial debtShort-term debt

Factoring receivablesOther short-term financial receivablesCash at banks and marketable securitiesTotal net short-term debt (including current maturities)

Net financial debt

Net equityDebt/Equity ratioAverage cost of debt

Bank loans – maturities > 12 monthsBonds – maturities > 12 monthsOther loans – maturities > monthsLong-term financial credits – maturities > 12 months

Total net long-term financial debt - Maturities > 12 months

Bank loans – maturities < 12 monthsBonds – maturities < 12 monthsOther loans – maturities < 12 monthsLong-term financial credits – maturities < 12 monthsTotal net long-term financial debt - Maturities < 12 months

Other short-term bank debtCommercial paperOther short-term financial debtShort-term debt

Factoring receivablesOther short-term financial receivablesCash at banks and marketable securitiesTotal net short-term debt (including current maturities)

Net financial debt

Net equityDebt/Equity ratioAverage cost of debt

12.31.2006 09.30.2007 12.31.2007

2,7828,043

142-63

10,904

39948749-3

932

970275116

1,361

-374-3

-5081,408

12,312

19,4160.63

4.3%

2,7828,043

142-63

10,904

39948749-3

932

970275116

1,361

-374-3

-5081,408

12,312

19,4160.63

4.3%

28,34322,3651,447

-1,339

50,816

4612,033

235-1,4021,327

1,2803,893

1125,285

-205-97

-1,3354,975

55,791

23,7892.35

5.1%

28,34322,3651,447

-1,339

50,816

4612,033

235-1,4021,327

1,2803,893

1125,285

-205-97

-1,3354,975

55,791

23,7892.35

5.1%

3,6778,375

142-1,090

11,104

2335931

-30293

54253113

1,086

-211-10

-572586

11,690

19,0250.61

4.6%

3,6778,375

142-1,090

11,104

2335931

-30293

54253113

1,086

-211-10

-572586

11,690

19,0250.61

4.6%

5,80715,780

101-148

21,540

2586325

-995-649

2,4173,374

1115,902

-195-13

-1,8163,229

24,769

18,9761.31

4.9%

5,80715,780

101-148

21,540

2586325

-995-649

2,4173,374

1115,902

-195-13

-1,8163,229

24,769

18,9761.31

4.9%

Financial annexes

111


Financial debt by subsidiary

Financial annexes

EnelSpA Slovenské EP3€mn

Bonds

Loans

Other LT debt

Commercial paper

Other

Total

14,758

12,190

(965)

-

998

26,982

193

345

17

-

(58)

496

-

1,057

-

-

-

1,057

Endesa

6,313

4,886

(68)

1,543

(693)

11,983

EFI1

2,481

7,709

-

2,350

112

12,652

EIH2

571

-

-

-

(3)

569

ED4

-

1,851

-

-

(12)

1,838

Other

82

767

(44)

-

(589)

215

Total

24,398

28,804

(1,059)

3,893

(245)

55,791

1. Enel Finance International2. Enel Investment Holding3. Enel Produzione4. Enel Distribuzione

112


Long-term debt maturity profile as of December 31, 2007

Financial annexes

1,535 1,698 338 1,211 1,197

12,787

1,195 1,181

12,913

1,335

11,827

7,667

Fixed rateFloating rate

2008 2009 2010 2011 2012 After2012

113


1998 1999 2000 2001 2002 2003 2004 2005 2006 20071998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Average cost of debt6.2%

4.7%4.3%

5.9%5.5%

5.2%4.6%

5.1%4.4% 4.4%

Average residual maturity

5:4

7:7

4:13:11

4:9

7:7

5:10

5:2

6:4

Net financial debt (€bn)

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

12.7

24.5

12.313.4

21.9

11.7

55.8

24.2 24.5

Fixed + Hedged/Total debt

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

53%44%

81%

61%54%

42%

80%

47%

60%53%

Financial debt statistical evolution

Financial annexes

4:4

12.1

114


Domestic MarketDomestic Market

Financial annexes

2006 2007 %€mn

Revenues

EBITDA

EBIT

Capex

Headcount

21,360

167

(6)

56

5,176

22,271

325

109

59

4,772

4.3

94.6

-

5.4

-7.8

115


Domestic Generation & Energy ManagementDomestic Generation & Energy Management

Financial annexes

2006 2007 %€mn

Revenues

EBITDA

EBIT

Capex

Headcount

15,657

3,157

2,205

897

9,573

18,207

3,541

2,600

1,167

9,306

16.3

12.2

17.9

30.1

-2.8

116


Domestic Infrastructure & NetworkDomestic Infrastructure & Network

Financial annexes

2006 2007 %€mn

Revenues

Power

Gas

EBITDA

Power

Gas

EBIT

Power

Gas

Capex

Headcount

5,707

5,421

286

3,418

3,297

121

2,589

2,558

31

1,459

24,701

5,762

5,437

325

3,726

3,544

182

2,833

2,743

90

1,587

22,710

1.0

0.3

13.6

9.0

7.5

50.4

9.4

7.2

190.3

8.8

-8.1

117


International activitiesInternational activities

Financial annexes

2006 2007 %€mn

Revenues

EBITDA

EBIT

Capex

Headcount

3,068

918

519

467

13,861

7,654

2,380

1,494

1,983

31,754

149.5

159.3

187.9

324.6

129.1

118


Services & HoldingServices & Holding

1. Excluding intercompany adjustments equal to -20€mn in 2007 and +3€mn in 2006, respectively

Financial annexes

2006 2007 %€mn

Revenues

Holding

Services & other

EBITDA1

Holding

Services & other

EBIT

Holding

Services & other

2,339

1,178

1,161

359

177

179

512

423

86

2,097

950

1,147

51

(59)

130

(46)

(75)

49

-10.3

-19.4

-1.2

-85.8

-133.3

-27.4

-109.0

-117.7

-43.0

119


Services & Holding - ContinuedServices & Holding - Continued

Financial annexes

2006 2007 %€mn

Capex

Holding

Services & other

Headcount

Holding

Services & other

84

13

71

5,237

657

4,585

133

19

114

4,958

735

4,223

58.3

46.2

60.6

-5.3

11.9

-7.9

120


Capex by business area (€mn)Capex by business area (€mn)

Financial annexes

897 1,167

1,4591,587

467

1,983

56

59133

84

+58.3%

2006 2007

Market

G&EMI&NInternational

S&H

+20.1%

2,963

4,929

+66.4%

+324.6%

+8.8%

+30.1%

121


2007 non-recurring items analysis

1. Recognition of lower charges in respect of fees for public land usage pursuant to law 266/05 paid in previous years

Financial annexes

2007€mn

Energy adjustment

Reimbursement for higher charges paid in previous years1

Total

70

45

115

122


Disclaimer

THESE SLIDES HAVE BEEN PREPARED BY THE COMPANY SOLELY FOR THE USE DURING INVESTORS’MEETINGS.

THE INFORMATION CONTAINED HEREIN HAS NOT BEEN INDEPENDENTLY VERIFIED. NONE OF THE COMPANY OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER IN NEGLIGENCE OR OTHERWISE FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THESE SLIDES OR THEIR CONTENTS OR OTHERWISE ARISING IN CONNECTION WITH THESE SLIDES OR ANY MATERIAL DISCUSSED DURING THE ABOVE MEETINGS.

THIS DOCUMENT IS BEING FURNISHED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER PERSON.

THE INFORMATION CONTAINED HEREIN AND OTHER MATERIAL DISCUSSED DURING INVESTORS’MEETINGS MAY INCLUDE FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT THE COMPANY’S BELIEFS AND EXPECTATIONS. THESE STATEMENTS ARE BASED ON CURRENT PLANS, ESTIMATES, PROJECTIONS AND PROJECTS, AND THEREFORE YOU SHOULD NOT PLACE UNDUE RELIANCE ON THEM.

FORWARD LOOKING STATEMENTS INVOLVE INHERENT RISKS AND UNCERTAINTIES. WE CAUTION YOU THAT A NUMBER OF IMPORTANT FACTORS COULD CAUSE ACTUAL RESUTLS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD-LOOKING STATEMENT. SUCH FACTORS INCLUDE, BUT ARE NOT LIMITED TO: TRENDS IN ENEL’S CORE ENERGY BUSINESS, ITS ABILITY TO IMPLEMENT COST-CUTTING PLANS, CHANGES IN THE REGULATORY ENVIRONMENT AND FUTURE CAPITAL EXPENDITURE.

PURSUANT TO ARTICLE, 154-BIS, PARAGRAPH 2, OF THE UNIFIED FINANCIAL ACT OFFEBRUARY 24, 1998, THE EXECUTIVE IN CHARGE OF PREPARING THE CORPORATE ACCOUNTING DOCUMENTS AT ENEL, LUIGI FERRARIS, DECLARES THAT THE ACCOUNTING INFORMATIONCONTAINED HEREIN CORRESPOND TO DOCUMENT RESULTS, BOOKS AND ACCOUNTING RECORDS.

123


Contact us

Investor Relations Team ([email protected])

Visit our website at:

www.enel.it (Investor Relations)

Visit our website at:

www.enel.it (Investor Relations)

• Luca Torchia (Head of IR)

• Elisabetta Ghezzi

• Donatella Izzo

• Fausto Sblandi

+39 06 83053437

+39 06 83052708

+39 06 83057449

+39 06 83052226

+39 06 83053437

+39 06 83052708

+39 06 83057449

+39 06 83052226

2007 Results And 2008 2012 Business Plan

Business

Transcript of 2007 Results And 2008 2012 Business Plan