The document provides an overview of Enel SpA's 2008 results and 2009-2013 plan. In 2008, Enel saw increases in revenues, EBITDA, EBIT, and net income compared to 2007, despite challenging market conditions. Enel aims to strengthen its financial stability and reduce net debt through measures such as asset disposals, a rights issue, optimized capex, and an improved dividend policy in order to maintain its A-/A2 credit rating.
1. Enel SpA
Investor Relations
2008 Results
2009-2013 Plan
“Solid strategy and strong performance in unsteady times”
Rome, March 12, 2009
2. Enel SpA
Investor Relations
Agenda
• Opening remarks
– Group overview
– Financial stability
• 2008 Results
• 2009-2013 Plan
– Group strategy
› Generation & Energy Management - Italy
› Market - Italy
› Infrastructure & Network - Italy
› International
› Endesa
› Enel Green Power
• Financial targets
• Questions and answers
1
3. Enel SpA
Investor Relations
Opening remarks
••International expansion completed
International expansion completed
••Financial stability to be reinforced through:
Financial stability to be reinforced through:
higher cash flow generation
higher cash flow generation
capex management
capex management
capital structure strengthening
capital structure strengthening
rights issue
rights issue
revised dividend policy
revised dividend policy
Asset disposals
Asset disposals
Maintaining A-/A2 rating is key to deploying our plan
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4. Opening remarks Enel SpA
Investor Relations
2008 Installed capacity (GW)
Group overview1 2008 Net production (TWh)
2008 Tot sales to final customers (TWh)
North America
0.7 GW
1.9 TWh Russia
8.2 GW
40.7 TWh
17.4 TWh
Central America
0.6 GW
2.5 TWh
Colombia
2.9 GW
12.9 TWh Brazil France Slovakia
7.3 TWh 1.1 GW 1.0 TWh 5.7 GW
3.9 TWh Romania
22.5 TWh
Peru 14.5 TWh
9.9 TWh
1.6 GW
Iberia
8.8 TWh 22.5 GW
5.2 TWh 85.5 TWh Bulgaria
109 TWh 0.6 GW
Argentina 3.7 TWh
Chile Italy
4.5 GW
5.4 GW 14.4 TWh 40.3 GW
21.7 TWh 13.4 TWh Morocco 96.3 TWh Greece
6.5 TWh 137.2 TWh 0.1 GW
0.1 GW
0.2 TWh
0.9 TWh
An international integrated energy player
1. Including: 100% Endesa net of the assets to be transferred to Acciona, full year OGK-5 production and full-year E. Muntenia Sud sales
Excluding Viesgo’s January - June 08 production and sales
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5. Enel SpA
Investor Relations
Opening remarks
Group overview
A well balanced business portfolio 2008 production mix
253.2 (TWh)
2008 EBITDA 13.5%
Generation & sales
Networks 14,318 €mn 17.5%
26.8%
Forward sales and
Forward sales and 13.0%
hedging procurement 40%
hedging procurement Stability and high 3.8%
contracts to protect
contracts to protect 60% Stability and high
margin visibility
visibility
margin 25.4%
FY08
Other renewables Coal
Hydro Nuclear
Oil & gas CCGT
Solid and secured cash flow thanks to regulated
business, hedging policies and optimal fuel mix
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10. Enel SpA
Investor Relations
Opening remarks
Financial stability
Asset Disposals
2009 2010
••HV electricity grid
HV electricity grid
••Gas distribution network
Gas distribution network
(majority stake) 6€bn
(majority stake)
••Enel Green Power
Enel Green Power
(minority stake)
(minority stake)
••Other non strategic assets
Other non strategic assets 1.6€bn 2.4€bn
Expected net debt reduction of ~10€bn by 2010
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11. Enel SpA
Investor Relations
Opening remarks
Financial stability
Capital structure optimization
Rights issue Dividend policy
Dividend policy
Rights issue
8 €bn
OLD
OLD NEW11
NEW
49 €c/share 60% pay out
flat on ord. income
2009
Strengthening our capital structure
1. Starting from 2009 results 10
12. Enel SpA
Investor Relations
Opening remarks
Financial stability
Conclusions
• Cash flow to reduce debt
• Cash flow to reduce debt
• Capex to support organic growth
• Capex to support organic growth
Maintain A-/A2 rating
Maintain A-/A2 rating
Attractive dividend yield
Attractive dividend yield
Net debt at 41 €bn by 2013
Net debt/EBITDA below 2.5x by 2013
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13. Enel SpA
Investor Relations
2008 Results
Luigi Ferraris
Executive Vice President
Accounting, Planning and Control
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14. Enel SpA
2008 results Investor Relations
Financial highlights: consolidated
€mn FY07 FY07 pro-forma FY08 %
Revenues 43,673 43,688 61,184 40.0
EBITDA 10,023 9,840 14,318 45.5
EBIT 6,990 6,781 9,541 40.7
Group net income 3,977 3,916 5,293 35.2
Net debt 55,7911 55,7911 49,9671 -10.4
1. Excluding net debt of assets held for sale
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15. Enel SpA
2008 results Investor Relations
From EBIT to net income
€mn FY07 FY07 pro-forma FY08 %
EBIT 6,990 6,781 9,541 40.7
Net financial charges (914) (885) (3,210) -
Interest charges 1,390 1,361 3,016 -
Financial Income (301) (301) - -
Fair value of Acciona put option (136) (136) (34) -
Other (39) (39) 228 -
Net income from equity investments
using equity method 12 12 48 -
EBT 6,088 5,908 6,379 8.0
Income tax (2,002) (1,956) (585) -70.1
Net income (continuing operations) 4,086 3,952 5,794 46.6
Net income (discontinued operations) 127 179 240 -
Net income (including third parties) 4,213 4,131 6,034 46.1
Minorities 236 215 741 -
Group net income 3,977 3,916 5,293 35.2
EPS (€) 0.64 0.63 0.86 -
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16. Enel SpA
2008 results Investor Relations
Group EBITDA breakdown: 2007 pro-forma
€mn FY07 FY07 pro-forma FY08 %
G&EM - Italy 3,541 2,743 3,113 13.5
Market - Italy 325 318 554 74.2
I&N - Italy 3,726 3,543 3,719 5.0
International 2,380 766 1,044 36.3
Iberia&Latam - 1,420 4,647 227.2
Enel Green Power - 989 1,188 20.1
S&H1 51 61 53 -13.1
Total 10,023 9,840 14,318 45.5
1. Including the Engineering and Innovation division 15
21. Enel SpA
2008 results Investor Relations
Focus on Russia
Unit price1 (€/MWh) Net production (TWh)
16.3
13.8 40.7
36.3
FY07 FY08
FY07 FY08
Coal dark spread (€/MWh) Gas spark spread (€/MWh)
7.2
3.9 3.8
5.7
FY07 FY08 FY07 FY08
1. Unit price excluding capacity payment
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22. Enel SpA
2008 results Investor Relations
EBITDA evolution: focus on Endesa1
+8%
+427 -40
6,895
+140
6,368
37
2,968
2,541
Latam
3,790 Spain&Portugal
3,930
Other
-3
FY07 Iberia Latam Other FY08
1. 100% Endesa results as released on February 26, 2009. Endesa’s GAAP 21
23. Enel SpA
2008 results Investor Relations
EBITDA evolution: focus on Enel Green Power (€mn)
+20.1%
+19 +15 -4 1,188
+51
+62
989 +57
FY07 Italy North South Spain Greece Other FY08
America America
22
24. Enel SpA
2008 results Investor Relations
Net debt evolution (€mn)
+6,754
December Cash-flow Capex1 Extra- Net Dividends4 December
31, 2007 from ordinary financial 31, 2008
operations activities2 charges3
-49,967
-55,791
Discontinued
Discontinued operations
operations -3,1553 -795
-3,4014
-1,725 -7,3971 +6,5972
+14,110
1. Including investment of Viesgo, Endesa Europe, Ecyr and Enel Rete Gas equal to 895€mn
2. Including change of scope of consolidation of the debt for 1,689€mn
3. Current net interest charge
4. Including 369€mn of dividends relating to minorities
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26. Enel SpA
Investor Relations
2009 – 2013 Plan
Group strategy
Key Priorities
••Consolidation and integration
Consolidation and integration
••Leadership in strategic markets
Leadership in strategic markets
••Operational excellence
Operational excellence
••Renewables and innovation
Renewables and innovation
••Financial stability
Financial stability
Strategy confirmed and well on track
25
27. Enel SpA
2009 – 2013 Plan Investor Relations
Base assumptions of our plan
Commodities
Commodities Electricity demand (2008-2013 CAGR)
Electricity demand (2008-2013 CAGR)
Brent ($/bbl)
83
55 Italy 1.1%
50
2
2009 2010 Long- Spain 1.7%
term
(2013)
Coal1 ($/ton) Russia 1.2%
100
70 Slovakia 1.1%
60
3
Latam 4.6%
2009 2010 Long-
term
(2013)
1. CIF ARA (Rotterdam)
2. Peninsular
3. Brazil, Chile, Colombia, Peru, Argentina 26
28. Enel SpA
Investor Relations
2009 – 2013 Plan
Group strategy
Generation & Energy Management - Italy % of coal production in Italian
Strategy and targets production mix1
+1.9GW clean coal
40%
••Enhanced competitiveness
Enhanced competitiveness
31%
of the energy portfolio
of the energy portfolio
••Margin protection
Margin protection 2008 2010
Plant imbalance
3%
2.6%
••Excellence in operations
Excellence in operations 2008 2010
2009-2013 total capex = 3.7€bn
Maintenance
••2009 – 2013 capex programme
2009 – 2013 capex programme 30% Growth
70%
1. Including Italian activities of Enel GreenPower 27
29. Enel SpA
2009-2013 plan Investor Relations
Group strategy
Electricity free market sales (TWh)
Market - Italy
Strategy and targets +31%
71
54
••Leadership in free markets
Leadership in free markets
2008 2013
Electricity free customers (mn)
+254%
8.5
2.4
2008 2013
Cost to serve (€/customer)
-47%
••Operational excellence in
Operational excellence in
45
customer service
customer service
24
2008 2013
28
30. Enel SpA
2009-2013 plan Investor Relations
Group strategy
Infrastructure and networks - Italy
Strategy and targets Cash cost (€/customer)
-19%
86
70
••Cost leadership
Cost leadership
2008 2013
Duration of interruptions (min/customer)
-16%
••Operational excellence
Operational excellence
56
47
••2009 – 2013 capex programme
2009 – 2013 capex programme
2008 2013
2009-2013 total capex = 4.2€bn
Smart Grids
••Innovation • Electric vehicles
Innovation
• Public lighting (LED)
• Gas - Digital meter
29
31. Enel SpA
2009-2013 plan Investor Relations
Group strategy
International
Strategy and targets EBITDA (€mn)
+26%
1,311
••Consolidation and integration
Consolidation and integration 1,044 335
244
674
724
76 302
2008 2010
Slovakia
Russia
Other
2009-2013 total capex = 7.4€bn
Slovakia
••Efficiency and organic growth
Efficiency and organic growth
27% 28%
Russia
Other
45%
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32. Enel SpA
2009-2013 plan Investor Relations
Group strategy
International – Focus on Slovakia
Strategy and targets EBITDA (€mn)
724 674
••Consolidation and integration
Consolidation and integration
2008 2010
Nuclear plants uptime
92%
86%
2008 2013
2009-2013 total capex = 3.3€bn
••Efficiency and organic growth
Efficiency and organic growth 10%
Maintenance
Growth
90%
New nuclear capacity c900MW by 2013
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33. Enel SpA
2009-2013 plan Investor Relations
Group strategy
International – Focus on Russia
EBITDA (€mn)
Strategy and targets
302
••Consolidation and integration
Consolidation and integration
761
2008 2010
Plant availability
81%
78%
2008 2013
2009-2013 total capex = 2.1€bn
Maintenance
••Efficiency and organic growth Growth
Efficiency and organic growth
31%
69%
New CCGT capacity - 2x410MW on stream by 2011
First gas from Severenergia in 2010 32
1. FY 2008 OGK-5, 153 €mn
34. Enel SpA
2009-2013 plan Investor Relations
Group strategy
Endesa
Strategy and targets EBITDA (€bn)
7.0 7.0
••Leadership in key markets
Leadership in key markets Iberia
0.1
Latam
3.0 3.3 Other
4.0 3.6
••Organic growth through capex
Organic growth through capex 2008 2010
2009-2013 total capex = 13.1 €bn1
Iberia
Latam
••Synergy plan of 813 €mn by 2012
Synergy plan of 813 €mn by 2012 11% Other
31% 58%
••New renewables programme
New renewables programme
1. Includes ESB 33
35. Enel SpA
2009-2013 plan Investor Relations
Group strategy
Endesa – Focus on Iberia
Strategy and targets
EBITDA (€bn)
••Leading and balanced position in
Leading and balanced position in 4.0 3.6
3,246
generation and sales
generation and sales
••Balanced fuel mix
Balanced fuel mix 2008 2010
2009-2013 total capex = 7.6 €bn
••Moving towards a more stable
Moving towards a more stable
regulatory scenario
regulatory scenario 3%
33%
45% 52%
67%
••New renewables programme
New renewables programme
Distribution Maintenance
••Leadership in distribution enhanced
Leadership in distribution enhanced Generation Growth
other
by digital meters and efficiency plan
by digital meters and efficiency plan
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36. Enel SpA
2009-2013 plan Investor Relations
Group strategy
Endesa – Focus on Latam
Strategy and targets
EBITDA (€bn)
3.3
3.0
••Leadership in countries with
Leadership in countries with
expected positive GDP growth
expected positive GDP growth
2008 2010
••Organic growth through capex
Organic growth through capex
2009-2013 total capex = 4.1 €bn
••Clear and stable regulatory
Clear and stable regulatory
framework
framework 48%
39%
52%
61%
••2009 – 2013 capex programme
2009 – 2013 capex programme
Distribution Maintenance
Generation Growth
35
38. Enel SpA
Investor Relations
Group strategy
Enel Green Power
Overview (2008 – MW) Other
Geo
Wind
Hydro
North America Eufer Europe1 4,464
(ENA)
51
748
678
399
103
1,237
Italy
Latin America
2,498
(ELA) 2,547
667
FY08
A well diversified portfolio in terms of technologies and geographies
1. France and Greece 37
39. Enel SpA
2009-2013 plan Investor Relations
Group strategy
Enel Green Power
EBITDA (€mn)
Strategy and targets
••Sustainable and profitable growth
Sustainable and profitable growth 1,188
1,203
2008 2010
••Low dependence on incentives
Low dependence on incentives 27% on average for 2008
27% on average for 2008
2009-2013 total capex = 3.7 €bn
14%
••2009 – 2013 capex programme
2009 – 2013 capex programme Maintenance
Growth
86%
••Strong cash flow from operations
Strong cash flow from operations 5 €bn in 2009-2013
5 €bn in 2009-2013
Total capacity addition of +1.9GW 2009 -2013
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40. Enel SpA
Investor Relations
Financial Targets
Enel’s commitment (€bn)
20081 2010 2013
• EBITDA • 14.3 • 16 • 18
• Group net income • 3.72 •4 •5
• Group net debt • 49.9 • 45 • 41
Solid performance in a deteriorating
economic environment
1. 2008 actual results
2. Ordinary net income 39
41. Enel SpA
Investor Relations
Agenda
• Opening remarks
– Group Overview
– Financial Stability
• 2008 Results
• 2009-2013 Plan
– Group strategy
› Generation & Energy Management - Italy
› Market - Italy
› Infrastructure & Network - Italy
› International
› Endesa
› Enel Green Power
• Financial targets
• Questions and answers
40
42. Enel SpA
Investor Relations
Disclaimer
This presentation contains certain statements that are neither reported financial results nor
other historical information (“forward-looking statements”). These forward-looking
statements are based on Enel S.p.A.’s current expectations and projections about future
events. Because these forward-looking statements are subject to risks and uncertainties,
actual future results may differ materially from those expressed in or implied by these
statements due to any number of different factors, many of which are beyond the ability of
Enel S.p.A. to control or estimate precisely, including changes in the regulatory
environment, future market developments, fluctuations in the price and availability of fuel
and other risks. You are cautioned not to place undue reliance on the forward-looking
statements contained herein, which are made only as of the date of this presentation. Enel
S.p.A. does not undertake any obligation to publicly release any revisions to any forward-
looking statements to reflect events or circumstances after the date of this presentation.
THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER OF SECURITIES IN THE UNITED
STATES OR ANY OTHER JURISDICTION. SECURITIES MAY NOT BE OFFERED OR SOLD IN
THE UNITED STATES ABSENT REGISTRATION WITH THE U.S. SECURITIES AND EXCHANGE
COMMISSION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT
OF 1933, AS AMENDED. ANY PUBLIC OFFERING OF SECURITIES IN THE UNITED STATES
WOULD BE MADE ONLY BY MEANS OF A PROSPECTUS TO BE OBTAINED FROM ENEL S.P.A.,
WHICH WOULD CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND ITS
MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS. THERE IS NO INTENTION TO
REGISTER ANY OFFERING OF SECURITIES BY ENEL S.P.A. IN THE UNITED STATES OR TO
CONDUCT A PUBLIC OFFERING OF SECURITIES OF THE COMPANY IN THE UNITED STATES.
ANY NON-PUBLIC OFFERING OF SECURITIES IN THE UNITED STATES WOULD BE MADE
ONLY BY MEANS OF AN OFFERING MEMORANDUM CONTAINING INFORMATION SIMILAR TO
THAT IN A PROSPECTUS; NO SUCH OFFERING MEMORANDUM HAS BEEN PREPARED AND NO
OFFER OF SECURITIES OF THE COMPANY, PUBLIC OR OTHERWISE, HAS BEEN MADE IN ANY
JURISDICTION, INCLUDING THE UNITED STATES. THIS PRESENTATION IS NOT FOR
DISSEMINATION OR PUBLICATION IN THE UNITED STATES.
41