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9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
9 M2007 Results And Strategic Update On Russia
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9 M2007 Results And Strategic Update On Russia

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http://www.enel.it/azienda/it/investor_relations/presentazioni/doc/2007_05/9M2007_Results.pdf

http://www.enel.it/azienda/it/investor_relations/presentazioni/doc/2007_05/9M2007_Results.pdf

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  • 1. 9M2007 Results and strategic update on Russia November 8, 2007
  • 2. Enel SpA Investor Relations Agenda 2007 9M results Strategic update on Russia Q&A Annexes 2
  • 3. Enel SpA 9M2007 Results Investor Relations Financial highlights: Consolidated €mn 9M06 9M07 % Revenues 28,621 28,760 0.5% EBITDA 6,264 6,711 7.1% EBIT 4,885 4,751 -2.7% Group net income 2,640 2,678 1.4% (1) Net debt 11,690 24,769 111.9% 1. As of December 31, 2006 3
  • 4. Enel SpA 9M2007 Results Investor Relations EBITDA evolution (€mn) +447 +447 +256 -276 6,711 +234 6,264 +25 +208 191 166 2,861 2,653 Market G&EM N&I 2,758 2,524 International 1 S&H 617 873 304 28 9M06 Market G&EM I&R International S&H 9M07 1. Including intercompany adjustments 4
  • 5. Enel SpA 9M2007 Results Investor Relations EBITDA evolution: domestic market division (€mn) +25 +25 +122 -113 +16 191 166 9M06 Regulated Free Other & 9M07 market market non recurring 5
  • 6. Enel SpA 9M2007 Results Investor Relations EBITDA evolution: domestic G&EM division (€mn) +208 +208 +106 -92 2,861 +194 2,653 9M06 Generation Fair value Non 9M07 margin Bilateral recurring contracts with SB 6
  • 7. Enel SpA 9M2007 Results Investor Relations Fuel cost evolution -11.3% -11.3% 52.4 Average fuel cost 46.5 (€/MWh) 9M06 9M07 -7.3% -7.3% -6.9% -6.9% +12.6% +12.6% 307.1 27.36 57.9 65.2 284.6 25.47 9M06 9M07 9M06 9M07 9M06 9M07 Oil (€/ton) Oil (€/ton) Gas (c€/mc) Gas (c€/mc) Coal (€/ton) Coal (€/ton) 7
  • 8. Enel SpA 9M2007 Results Investor Relations EBITDA evolution: domestic I&N division (€mn) +234 +234 +292 +27 -85 2,758 2,524 2,816 2,758 2,524 9M06 Electricity Gas Non 9M07 recurring 8
  • 9. Enel SpA 9M2007 Results Investor Relations EBITDA evolution: international division (€mn) +256 +256 -30 +25 -19 873 +260 +7 108 12 617 -14 -4 5 83 444 184 Iberia South-Eastern Europe 143 Centrel 139 Russia America 202 France & Belgium 188 -18 9M06 Iberia South- Centrel Russia Americas France and 9M07 Eastern Belgium Europe 9
  • 10. Enel SpA 9M2007 Results Investor Relations EBITDA evolution: services & holding1 (€mn) -276 -276 304 -210 -23 -43 28 9M06 Import Non Other 9M07 recurring 1. Including intercompany adjustments 10
  • 11. Enel SpA 9M2007 Results Investor Relations Focus on renewables Capacity (MW) Production (GWh) +29.8% +29.8% +36.7% +36.7% 1,602 3,758 45 Other 230 1,234 7 21 Geothermal 2,749 919 47 622 Wind 254 537 Hydro 963 2,588 650 928 1,532 9M06 9M07 9M06 9M07 +34 +34 +20 201 167 +14 Ebitda Evolution 9M06 9M07 Domestic International 11
  • 12. Enel SpA 9M2007 Results Investor Relations Net debt evolution (€mn) -13,079 -13,079 Cash flow Net Extra-ordinary from Capex financial Taxes Dividends 30/9/2007 31/12/2006 activities operations charges -2,518 -11,690 +5,358 -12,665 1 -668 -789 -1,798 -24,769 1. Including net debt of acquisitions 12
  • 13. Enel SpA Investor Relations Agenda 2007 9M result Strategic update on Russia Q&A Annexes 13
  • 14. Enel SpA Investor Relations Enel has built Russia’s first vertically integrated position in the energy sector Upstream gas Power generation Supply o 40% of a JV with ENI 37.15% of OGK5 49.5% of RusEnergoSbyt • At full production 40%-50% of • Public offer filed • 35TWh expected to be sold in 2007 OGK-5 demand • 8,700 MW capacity, with • Strong regional reach with 25 offices and balanced mix (50% gas 7 branches and 50% coal) • 40 TWh expected to be generated in 2007, with 100% exposure to West Russia and Urals Early mover advantage and reduced risks in a huge, liberalizing market 14
  • 15. Enel SpA Investor Relations Enel’s experience and track record in Russia Power generation Three year contract with RAO UES: On time completion of 450 MW unit 2 and Russia’s longest heat pipeline Generation EBITDA growth from 5 €Mn (2004) to 30 €Mn (2007F) St. Petersburg Thermal efficiency increase 450 MW CCGT O&M costs alignment to international benchmarks (10% reduction and 12 €Mn capex and O&M savings) 30% HR reduction Supply First mover in independent electricity supplies in Russia RusEnergoSbyt Direct experience in the supply sector through Rusenergosbyt A proven track record of bringing innovation and creating value 15
  • 16. Enel SpA Investor Relations Strategic rationale Upstream gas Developing a robust presence Entry in a key strategic sector in the entire value chain Participating in a worldwide High profitability major project Generation hedging Partnership with E&P leading companies Security of supply Value of gas reserves in a Competitive Supply tight domestic market 16
  • 17. Enel SpA Investor Relations Acquisition overview Upstream gas Acquisition (2007, April 4th) of undeveloped upstream gas assets by a JV ENI - Enel (60%-40%) Enel Investment Holding Enel Investment Holding Eni International Eni International B.V. B.V. B.V. B.V. Gazprom Call Option Agreement: 40% 60% Gazprom option to acquire a 51% interest within 2 years from ENI Russia BV1 acquisition ENI Russia BV1 100% Gazprom to (49% Post Gazprom entry) transport the natural gas to final 51% call option users in Russia and/or OOO OOO EniNefteGaz 2 EniNefteGaz 2 off-take the entire production Enel’s acquisition cash Purchased Assets : Purchased Assets : consideration (after Gazprom call 1. Artikgaz (100%) Artikgaz (100%) 1. option exercise): USD 417 million 2. 2. Urengoil (100%) Urengoil (100%) 3. 3. Neftegaztechnologia Neftegaztechnologia (100%) (100%) 1 Renamed Arctic Russia BV 17 2 To be renamed
  • 18. Enel SpA Investor Relations Asset overview Upstream gas Acquired companies holding hydrocarbon licences for the exploration and production of oil and gas Fields located in West Siberia Urengoy Area Next to the giant fields being developed by Gazprom Connected with the “unified” national transportation system Overall hydrocarbons resources: 5 billion BOE 18
  • 19. Enel SpA Investor Relations Strategic rationale Power generation Russia is one of the most attractive power markets to invest in OGK-5 owns some of the most competitive assets in this market A clear path to full independent control by 1Q 2008 is available OGK-5 will benefit from Enel’s vertical integration 19
  • 20. Enel SpA Investor Relations Russia, the fourth largest power market in the world Power generation Over 1,000 TWh of demand growing at 2.5 – 4.2% per year 40 GW new capacity required by 2010 Urals IES Center IES South IES 13 48 56 44 52 12 40 48 36 11 44 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Capacity demand, GW Capacity supply including decommissioning, GW High new-build costs of over 1,000 $/kW increase the value of existing and infra-marginal assets Source: RAO UES 20
  • 21. Enel SpA Investor Relations Russia: non households electricity market scenario Power generation 5-10% 10-15% Deregulated market 15-20% (marginal price) 25-30% 30-35% 50-55% Regulated market 60-65% (tariff) 80-85% 100% 01/01/07 01/07/07 01/01/08 01/07/08 01/01/09 01/07/09 01/01/10 01/07/10 01/01/11 Liberalization process initiated by government on track and expected to be achieved by 2011 Source: RAO UES 21
  • 22. Enel SpA Investor Relations Marginal nodal pricing is used Power generation European Russia Siberia Far East & Urals 76% of demand (~750TWh) 21% of demand (~ 205 TWh) Isolated regions Gas-dominated Hydro and coal dominated 3% of demand (~30 TWh) Highest growth rates (4-6%) Growth 2-3% No liberalization expected Hydro Price/MWh Price/MWh Nuke Coal Gas Fuel Oil 8 32 69 GW 140 11 19 GW 27 35 Indicative Merit order curve Indicative Merit order curve European Russia and Urals are the most attractive regions 22
  • 23. Enel SpA Investor Relations Expected upsides from deregulation Power generation Russian government guidelines: gas prices to reach European net back by 2011 Coal prices to increase with inflation Fuel price index Increasing dark spread 2.5 gas 2 coal 1.5 1 2007 2008 2009 2010 2011 Coal assets in gas-fired regions will benefit most from deregulation 23
  • 24. Enel SpA Power generation Investor Relations OGK-5 owns some of the most competitive assets in Russia Location Capacity Generation Capacity factor Fuel mix 1 Exposure to Transaction multiple 2 2006 European Russia & (MW) (TWh) ( %) Urals Coal 9,531 13% 47.2 57% 100% - Gas 87% OGK-1 Coal 26% 8,695 48.1 63% 100% 500 Gas OGK-2 74% Coal Gas 8,497 30.6 41% 62% 38% 70% 610 OGK-3 Coa l 17% 8,630 51.0 68% 83% 750 Gas OGK-4 83% Coal 8,672 40.4 53% Gas 51% 49% 100% 668 OGK-5 Coal 9,052 32.9 41% 48% 85% - Ga s 52% OGK-6 1. Referred to production Source: Companies data; RAO UESR; Business news 2. EV/Inst Cap (USD/MW) Largest coal and European exposure 24
  • 25. Enel SpA Power generation Investor Relations OGK-5 allows a clear path to control: Key events Stake Purchase Enel’s OGK-5 price stake 6.6.2007 RAO UES sale of an OGK-5 stake 25.03% 1.12 €bn 25.03% 6.22.2007 Enel purchase of OGK-5 shares 4.96% 0.21 €bn 29.99% August 2007 FAS approval to reach 100% September 2007 Spin off from RAO UES completed 10.24.2007 Enel purchase of OGK-5 shares 7.15% 0.30 € bn 37.15% 10.29.2007 Mandatory Public Offer Filing to FSFR Up to 74%* No Shareholder Agreement required unlike other OGKs, allowing maximum management independence and flexibility 4 Enel representatives appointed to OGK-5 Board in August plus others to OGK-5 management committes Integration process under way with 30 Enel experts mobilized locally OGK-5 ownership structure Russian Federation Russian Federation RAO UES 26.34% 26.34% 75% 37.15% Up to 73.66% Others Others 25% 36.51% Before 6.6.2007 At present Post Public Offer * assuming Russian federation will not adhere to the public tender offer Exchange rates referred to transaction date 25
  • 26. Enel SpA Power generation Investor Relations OGK-5 asset overview Tver Region Sverdlovsk Region Konakovskaya GRES Sredneuralskaya GRES Installed capacity 2,400 MW Installed capacity 1,182 MW Main fuel gas Main fuel gas Share in OGK-5 electricity sales 21% Share in OGK-5 electricity sales 16% Load factor 40% Load factor 64% Sales volume 2006 8.1 TWh Sales volume 2006 6.1 TWh Moscow ● Sverdlovsk Region Stavropol Region Reftinskaya GRES Nevinnomysskaya GRES Installed capacity 3,800 MW Installed capacity 1,290 MW Main fuel coal Main fuel gas Share in OGK-5 electricity sales 47% Share in OGK-5 electricity sales 16% Load factor 57% Load factor 57% Sales volume 2006 6 TWh Sales volume 2006 18 TWh The largest coal-fired plant in Russia 4 power plants, 8700 MW, 40 TWh production 26
  • 27. Enel SpA Power generation Investor Relations OGK-5 investment plan Increasing capacity and efficiency Reducing environmental impact Nevinnomysskaya GRES 2.37 €bn Investment Plan (2007-2012) CCGT • 670 €mn New capacity Fuel Gas • 495 €mn Safety and Environmental Installed capacity 400 MW Capex Commissioning 2010 • 1.2 €bn Stay in business/life Fuel supplier Gazprom extension Capex: 0.30 €bn Moscow ● Approved: EPC contract under finalization Sredneuralskaya GRES CCGT Existing power plants Fuel Gas Installed capacity 410 MW Commissioning 2010 Fuel supplier Itera Capex: 0.37 €bn Up to 9500 MW total installed capacity by 2010 27
  • 28. Enel SpA Investor Relations OGK-5 fuel supplies Power generation OGK-5 gas suppliers (2006) GAS 4% • Total gas consumption: ~6.5 bcm (2006) 34% • Five year take-or-pay contract with Gazprom (2008- 2012) 62% • Diversified portfolio of gas suppliers • At full gas production up to 50% of OGK-5 demand will be hedged by own equity gas OGK-5 gas suppliers (at regime) Others 50% 50% Half of OGK-5 gas demand could be supplied from Enel reserves 28
  • 29. Enel SpA Investor Relations RusenErgoSbyt A first mover in independent electricity trading Supply 49.5% held by Enel since 2006 in partnership with ESN Significant growth since Enel entry: from 22.7 TWh (2006) to 35 TWh (2007F) 33 regions served in 2007, growing to 47 in 2008 260,000 households served (2006) 25 local offices, 7 branches ~860 employees (750 in local branches) Regions supplied in 2007 Regions to be supplied from 2008 A unique opportunity to participate in the supply sector 29
  • 30. Enel SpA Investor Relations Conclusions Russia is one of the most attractive power markets worldwide Current status of liberalization makes investing in Russia similar to investing in Western Europe at the end of the 1990’s OGK-5 is best positioned to take advantage of the new framework Enel integrated position and previous experience in Russia will create additional value for OGK-5 Russia expected to boost Enel profitability 30
  • 31. Enel SpA Investor Relations Agenda 2007 9M result Strategic update on Russia Q&A Annexes 31
  • 32. Enel SpA Annexes – 9M2007 Results Investor Relations Enel’s electricity sales Volumes sold (TWh) +8.8% +8.8% 127.3 117.0 20.8 International 10.0 Italy 107.0 106.5 9M06 9M07 32
  • 33. Enel SpA Annexes – 9M2007 Results Investor Relations Italian electricity market overview (TWh) +0.2% +0.2% 252.2 252.6 Import 31.4 35.7 Net production 147.2 152.5 Enel Net production 80.1 69.9 Pumped storage -6.5 -5.5 consumption 9M06 9M07 33
  • 34. Enel SpA Annexes – 9M2007 Results Investor Relations Enel’s domestic electricity sales (TWh) Electricity – Total market sales1 Free customers2 (thousand) 236.0 +0.2% +0.2% 236.4 827.0 107.0 106.5 free 15.2 +87.5% 28.5 +87.5% Enel eligible3 91.8 -15.0% -15.0% 78.0 120.5 129.0 129.9 9M06 9M07 free 98.3 +1.6% +1.6% 99.9 Other eligible3 30.7 -2.3% -2.3% 30.0 9M06 9M07 1. Excluding losses on the grid. Data relating to other operators are Enel’s estimates 2. Including Dual Energy 3. Sales to the eligible market including self-consumption 34
  • 35. Enel SpA Annexes – 9M2007 Results Investor Relations Enel’s net production (TWh) -2.7% -2.7% 98.6 95.9 International 18.5 26.0 Italy 80.1 69.9 9M06 9M07 35
  • 36. Enel SpA Annexes – 9M2007 Results Investor Relations Group production mix (%) -2.7% -2.7% 98.6 TWh 95.9 TWh 11.8% 22.2% 17.4% Oil & Gas 14.6% ST/OCGT Gas CCGT 29.8% Coal 27.7% Nuclear 11.1% Other renewables 6.4% 5.1% 5.3% Hydro 24.0% 24.6% 9M06 9M07 36
  • 37. Enel SpA Annexes – 9M2007 Results Investor Relations Enel’s electricity distribution (TWh) +0.6% +0.6% 199.9 201.0 International 9.3 9.4 Italy 1 190.6 191.6 9M06 9M07 1. Net of energy dispatched in the previous years 37
  • 38. Enel SpA Annexes – 9M2007 Results Investor Relations Italian gas market overview (bcm) -5.0% -5.0% 1.7 61.6 58.5 1.7 Other Thermoelectric 23.5 24.9 Industrials 15.2 13.9 Residential & Commercial 21.2 18.0 9M06 9M07 Source: Ministry of the Economic Development and Enel estimates 38
  • 39. Enel SpA Annexes – 9M2007 Results Investor Relations Enel’s gas sales Volumes sold (bcm) Customers (thousand) -9.4% -9.4% +6.3% +6.3% 3.2 2,434 2.9 2,289 9M06 9M07 9M06 9M07 39
  • 40. Enel SpA Annexes – 9M2007 Results Investor Relations Enel’s gas distribution Volumes distributed (bcm) End users (thousand) -15.4% -15.4% +0.2% +0.2% 2,001 2,005 2.6 2.2 9M06 9M07 9M06 9M07 40
  • 41. Enel SpA Annexes – 9M2007 Results Investor Relations Net Production : Geographical breakdown (GWh) 9M06 9M07 % Italy 80,132 69,862 -12.8 Spain 4,825 4,627 -4.1 Bulgaria 2,188 2,492 13.9 Slovakia 9,627 15,991 66.1 N America 1,020 922 -9.6 S America 826 1,996 141.6 Total 98,618 95,890 -2.8 41
  • 42. Enel SpA Annexes – 9M2007 Results Investor Relations Net production : source breakdown Oil & Gas Other (GWh) Gas CCGT Coal Nuclear Hydro ST/OCGT renewables Italy 11,310 16,680 20,616 - 4,241 17,015 Iberia 2 - 3,136 - 485 1,004 South-Eastern Europe - - 2,492 - - - Centrel - - 2,319 10,681 - 2,991 Americas - - - - 345 2,573 Total 11,312 16,680 28,563 10,681 5,071 23,583 42
  • 43. Enel SpA Annexes – 9M2007 Results Investor Relations Domestic net production mix (%) -12.7% -12.7% 80.1 TWh 69.9 TWh 16.2% 27.0% Oil & Gas 23.9% ST/OCGT 17.9% Gas CCGT Coal 29.5% Other renewables 25.7% Hydro 5.2% 6.1% 24.2% 24.3% 9M06 9M07 43
  • 44. Enel SpA Annexes – 9M2007 Results Investor Relations International net production mix (%) +40.5% +40.5% 18.5 TWh 26.0 TWh 1.2% 30.5% 36.5% Oil & Gas ST/OCGT Coal Nuclear 41.0% Other renewables 34.1% Hydro 4.9% 3.2% 23.3% 25.3% 9M06 9M07 44
  • 45. Enel SpA Annexes – 9M2007 Results Investor Relations Domestic G&EM division: CO2 emissions vs. allowances CO2 Emissions (Mt) Allowances Deficit 9M06 31.2 7.6 38.8 9M07 31.6 2.0 33.6 45
  • 46. Enel SpA Annexes – 9M2007 Results Investor Relations International sales (TWh) +108% +108% 20.8 10.0 9M06 9M07 46
  • 47. Enel SpA Annexes – 9M2007 Results Investor Relations Domestic electricity distribution (TWh) +0.5% +0.5% 190.6 191.6 9M06 9M07 Net of energy dispatched in the previous years 47
  • 48. Enel SpA Annexes – 9M2007 Results Investor Relations Income statement € mn 9M06 9M07 % Operating revenues 28,621 28,760 0.5% Operating costs 21,813 22,049 1.1% EBITDA 6,264 6,711 7.1% % of revenues 21.9% 23.3% EBIT 4,885 4,751 -2.7% % of revenues 17.1% 16.5% 48
  • 49. Enel SpA Annexes – 9M2007 Results Investor Relations From EBIT to EPS € mn 9M06 9M07 % EBIT 4,885 4,751 -2.7% Net financial charge - 491 - 324 EBT 4,394 4,427 0.8% Net income (including third parties) 2,720 2,753 1.2% Group net income 2,640 2,678 1.4% EPS (€) 0.43 0.43 49
  • 50. Enel SpA Annexes – 9M2007 Results Investor Relations Balance sheet € mn FY06 9M07 % Net financial debt 11,690 24,769 111.9% Shareholders' equity 19,025 18,976 -0.3% Net capital employed 30,715 43,745 42.4% 50
  • 51. Enel SpA Annexes – 9M2007 Results Investor Relations Debt structure Average debt maturity: 7 years and 8 months Average cost of debt: 4.9% (Fixed+hedged)/Total long-term debt: 81% (Fixed+hedged)/Total net debt: 68% Rating: S&P’s = A/A-1 C.W. negative; Moody’s = A1/P-1 C.W. negative € mn FY06 9M07 % Long-term 11,104 21,540 94.0% Short-term1 1,409 6,248 343.4% Cash2 -823 -3,019 266.8% Net debt 11,690 24,769 111.9% 1 Including current maturities of long-term debt 2 Including factoring and other current receivables 51
  • 52. Enel SpA Annexes – 9M2007 Results Investor Relations Debt evolution Average cost of debt Average residual maturity 6.2% 5.9% 7:8 7:7 7:7 5.5% 5.2% 4.9% 6:4 4.7% 4.6% 4.4% 4.4% 4.3% 5:4 5:2 4:1 4:9 4:4 3:11 1 1 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Net financial debt (€bn) Fixed + Hedged/Total debt 24.5 24.2 24.5 24.8 81% 80% 21.9 68% 61% 60% 53% 54% 53% 12.7 13.4 42% 44% 12.1 12.3 11.7 1 1 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1. As of September 30, 2007 52
  • 53. Enel SpA Annexes – 9M2007 Results Investor Relations Financial debt evolution €m 12.31.2005 06.30.2006 12.31.2006 09.30.2007 Bank loans – maturities > 12 months 2,782 2,975 3,677 5,807 Bonds – maturities > 12 months 8,043 8,293 8,375 15,780 Other loans – maturities > months 142 219 142 101 Long-term financial credits – maturities > 12 months -63 -201 -1,090 -148 Total net long-term financial debt - Maturities > 12 months 10,904 11,286 11,104 21,540 Bank loans – maturities < 12 months 399 340 233 258 Bonds – maturities < 12 months 487 487 59 63 Other loans – maturities < 12 months 49 33 31 25 Long-term financial credits – maturities < 12 months -3 0 -30 -995 Total net long-term financial debt - Maturities < 12 months 932 860 293 -649 Other short-term bank debt 970 1,442 542 2,417 Commercial paper 275 1,194 531 3,374 Other short-term financial debt 116 40 13 111 Short-term debt 1,361 2,676 1,086 5,902 Factoring receivables -374 -212 -211 -195 Other short-term financial receivables -3 -12 -10 -13 Cash at banks and marketable securities -508 -521 -572 -1,816 Total net short-term debt (including current maturities) 1,408 2,791 586 3,229 Net financial debt 12,312 14,077 11,690 24,769 Net equity 19,416 18,995 19,025 18,976 Debt/Equity ratio 0.63 0.74 0.61 1.31 Average cost of debt 4.3% 4.5% 4.6% 4.9% 53
  • 54. Enel SpA Annexes – 9M2007 Results Investor Relations EBIT by business area (€mn) -134mn 4,885 4,751 -2.7% 1,969 2,162 +9.8% gem i&n intl 1 sh 1,922 mkt 2,124 +10.5% 415 494 +18.3% 491 85 18 9M06 9M07 -44 1 Including elisions 54
  • 55. Enel SpA Annexes – 9M2007 Results Investor Relations Domestic Market division details € mn 9M06 9M07 % Revenues 15,914 16,066 1.0% EBITDA 166 191 15.1% EBIT 85 18 -78.8% Capex 22 24 9.1% 1 Headcount 5,176 4,991 -3.6% 1. As of December 31, 2006 55
  • 56. Enel SpA Annexes – 9M2007 Results Investor Relations Domestic Generation & Energy Management division details € mn 9M06 9M07 % Revenues 11,719 12,383 5.7% EBITDA 2,653 2,861 7.8% EBIT 1,969 2,162 9.8% Capex 526 781 48.5% 1 Headcount 9,573 9,518 -0.6% 1. As of December 31, 2006 56
  • 57. Enel SpA Annexes – 9M2007 Results Investor Relations Domestic Infrastructure & Network division details € mn 9M06 9M07 % Revenues 4,080 4,137 1.4% Power 3,882 3,924 1.1% Gas 198 213 7.6% EBITDA 2,524 2,758 9.3% Power 2,440 2,647 8.5% Gas 84 111 32.1% EBIT 1,922 2,124 10.5% Power 1,894 2,081 9.9% Gas 28 43 53.6% Capex 979 1,001 2.2% 1 Headcount 24,701 23,056 -6.7% 1. As of December 31, 2006 57
  • 58. Enel SpA Annexes – 9M2007 Results Investor Relations International activities details € mn 9M06 9M07 % Revenues 2,125 3,076 44.8% EBITDA 617 873 41.5% EBIT 415 491 18.3% Capex 228 671 194.3% 1 Headcount 13,861 13,359 -3.6% 1. As of December 31, 2006 58
  • 59. Enel SpA Annexes – 9M2007 Results Investor Relations Services & Holding details € mn 9M06 9M07 % Revenues 1,648 1,480 -10.2% Holding 866 660 -23.8% Services and other 782 820 4.9% 1 EBITDA 316 34 -89.2% Holding 175 -101 -157.7% Services and other 141 135 -4.3% 1 EBIT 506 -38 -107.5% Holding 428 -113 -126.4% Services and other 78 75 -3.8% 1. Excluding inter-company adjustments equal to €-6mn in 9m07 and €-12mn in 9m06 respectively 59
  • 60. Enel SpA Annexes – 9M2007 Results Investor Relations Services & Holding details - Continued € mn 9M06 9M07 % Capex 40 41 2.5% Holding 3 5 66.7% Services and other 37 36 -2.7% 1 Headcount 4,585 4,412 -3.8% Holding 1,275 721 -43.5% Services and other 4,585 4,412 -3.8% 1. As of December 31, 2006 60
  • 61. Enel SpA Annexes – 9M2007 Results Investor Relations Capex by business area (€mn) +723mn +40.3% 2,518 24 +9.1% Market G&M 781 +48.5% I&N 22 International 1, 795 Services & Holding 526 1,001 +2.2% 979 671 +194.3% 228 +2.5% 40 41 9M06 9M07 61
  • 62. Enel SpA Annexes – 9M2007 Results Investor Relations 2006 non-recurring items analysis €mn 2006 Green certificates reimbursement Reserve capacity reimbursement Resolution 20/4 Terna 41 Siemens litigation 51 Terna bonus shares 23 Modena capital gain 85 Trento capital gain Energy adjustment 71 Gas adjustment 15 Maritza 33 Total 319 62
  • 63. Enel SpA Investor Relations Disclaimer THESE SLIDES HAVE BEEN PREPARED BY THE COMPANY SOLELY FOR THE USE DURING THE CONFERENCE CALL ON ENEL’S 9M2007 RESULTS AND STRATEGIC UPDATE ON RUSSIA. 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 CONFERENCE CALL. 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 THE ABOVE CONFERENCE CALL 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 OF FEBRUARY 24, 1998, THE EXECUTIVE IN CHARGE OF PREPARING THE CORPORATE ACCOUNTING DOCUMENTS AT ENEL, LUIGI FERRARIS, DECLARES THAT THE ACCOUNTING INFORMATION CONTAINED HEREIN CORRESPOND TO DOCUMENT RESULTS, BOOKS AND ACCOUNTING RECORDS. 63
  • 64. Enel SpA Investor Relations Contact us Investor Relations Team (investor.relations@enel.it) Luca Torchia (Head of IR) +39 06 83053437 Massimiliano Bevignani (Stock analysis and IR reporting) +39 06 83057023 Donatella Izzo (Buy-side) +39 06 83057449 Fausto Sblandi (Sell-side) +39 06 83052226 Visit our website at: www.enel.it (Investor Relations) 64

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