2007 Results And 2008 2012 Business Plan

Enel SpA
Investor Relations

2007 Results
2008-2012 Plan
“Consolidation, Growth and Financial Stability”

London, March 13, 2008

Enel SpA
Investor Relations

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
1

Enel SpA
Investor Relations
Opening remarks

Consolidation, growth and financial stability

2008-2012 key figures (€bn)

• Cash-flow from operations +63

• Net portfolio optimization +11/15

• Capex -37

• Financial charges -14

• Dividends -15

Stable dividend policy of 49€c/share
8/12€bn net debt reduction
Net debt/EBITDA < 3X by 2012
2

Enel SpA
Investor Relations
Opening remarks

Financial targets

2009 2012

• EBITDA • 13.8€bn • 16.6€bn
– Italy – 6.9€bn – 7.0€bn
– International – 6.9€bn – 9.6€bn

• EPS1 • 62.3€c • 83.0€c

EPS CAGR2 2007-2012: 10%
Net debt 2012: 45-49€bn
1. Ordinary income only
2. On a like for like basis 3

Enel SpA
Investor Relations

Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan
– Domestic Market


– Domestic Infrastructure & Networks

– International



• Annexes

4

Enel SpA
2007 results Investor Relations

Financial highlights: consolidated

€mn FY06 FY07 %

Revenues 38,513 43,673 13.4

EBITDA 8,019 10,023 25.0

EBIT 5,8191 6,990 20.1

Group net income 3,036 3,977 31.0

Net debt 11,690 55,7912 -

1. Including capital gain raising from Wind-Weather share transaction for 263 €mn
2. Net of discontinued operations 5

Enel SpA

From EBIT to net income

€mn FY06 FY07 %

EBIT 5,8191 6,990 20.1

Net financial charges 651 902 38.6

Interest charges 577 1,390 -

Financial income - (301) -

Fair value of Acciona put option - (136) -

Other 74 (51) -

EBT 5,168 6,088 17.8

Income tax 2,067 2,002 (3.1)

Net income (including third parties) 3,101 4,213 35.9

Group net income 3,036 3,977 31.0

EPS (€) 0.49 0.64 30.6

1. Including capital gain raising from Wind-Weather share transaction for 263 €mn 6

Enel SpA

EBITDA evolution (€mn)

+2,004

+1,462 -308
10,023
+308 325
+384
8,019 +158
167 3.541

3.157

Market
G&EM
3.726
I&N
International
S&H1
3.418

2.380
918
359 51

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

1. Including intercompany adjustments 7

Enel SpA

EBITDA evolution: domestic market division (€mn)

+158

+132 -82

325

+108

167

FY06 Regulated Free Other & FY07
market market non-recurring

8

Enel SpA

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

+384

+103 -47 3,541
+328
3,157

FY06 Generation Fair value Non- FY07
margin bilateral recurring
contracts
with SB 9

Enel SpA

Fuel cost evolution

-5%

51.8 49.3
Average fuel
cost (€/MWh)

FY06 FY07

-2% -2% +17%

306.7 300.8 27.5 26.9 58.6 68.8

FY06 FY07 FY06 FY07 FY06 FY07

Oil (€/ton) Gas (c€/mc) Coal (€/ton)

10

Enel SpA

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

+308

+332 +61 -85 3,726
3,418

3.750 3.726
3.418

FY06 Electricity Gas Non- FY07
recurring
11

Enel SpA

EBITDA evolution: international division (€mn)

+1,462

+573 -15 2,380

+198 +9 680
+691 +6
16

587
Iberia
918 South-Eastern Europe (SEE)
Centrel 186
107 Russia
7 Americas
France & Belgium
389
926
180
235
-15
FY06 Iberia SEE Centrel Russia Americas France FY07
& Belgium

12

Enel SpA

EBITDA evolution: services & holding1 (€mn)

-308

359 -240

-23
-45

51

FY06 Import Non- Other FY07
recurring

1. Including intercompany adjustments 13

Enel SpA

Focus on renewables1

Capacity (MW) Production (GWh)

+18.5% Other Wind
Geothermal +10.8%
Mini-hydro
3,112 11,828
2,626 47 10,676
678
46 308
671 327
857 5,269
5,195
588
EBITDA evolution (€mn) 1,293
1,244
1321 1530
4,958
+11.0% 3,910

FY06 FY07 46 868 FY06 FY07
40
782

FY06 Italy Interna- FY07
tional
1. Excluding large hydro and Endesa 14

Enel SpA

Net debt evolution (€mn)

+45,826

December Cash-flow Capex Extra- Net Taxes Dividends December
31, 2006 from ordinary financial 31, 2007
operations activities charges

-5,2301
-11,690 +9,130

-43,4792 -1,390
-1,677
-3,180 -57,5163

1. Including 301€mn capital expenditure of Endesa Europa
2. Including net debt of acquisitions 15
3. Continuing operations: -55,791€mn; Discontinued operations: -1,725

Enel SpA

2007 dividend (€c/share)

49 49

On the results of 2006 2007

16

Enel SpA
Investor Relations

Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan
– Domestic Market



– International



• Annexes

17

Enel SpA
2008-2012 strategy Investor Relations

Strategy overview

March 2006 March 2007
Priorities for 2006-2010 Priorities for 2007-2011

• Retain market leadership in • Leadership in the domestic
Italy in a liberalising market market

• International growth through • International growth
acquisitions

• Operational excellence
• Improve operational
performance through
investment program and
efficiency • Environment and innovation

A clear and consistent strategy
18

Enel SpA

Strategic priorities

••Consolidation and value
Consolidation and value
enhancement of new acquisitions

An
An
••Leadership in core markets
Leadership in core markets
integrated
integrated

international
international ••Vertical integration
Vertical integration
energy
energy

group
group ••Operational excellence
Operational excellence

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

Consolidation, growth and financial stability

19

Enel SpA

Endesa update

Overview
• Leadership positions in Spain and Latin America

• Close working relationship with Acciona

• Strong earnings growth potential

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

• Cleaner, more balanced production mix

• Opportunity to grow gas market share

Latin America
• Strong demand growth in liberalising markets

• Need for new capacity

20

Enel SpA

Russia update

Highly attractive market
• GDP growth

• Liberalisation on track

• Domestic market price increasing

First vertically integrated presence in the sector
• Upstream gas: 40% stake in SeverEnergya

• Power generation: 59.8% stake in OGK-5

• Supply: 49.5% stake in RusEnergoSbyt

Opportunity to improve existing capacity
• 2.2€bn investment in the period 2008-2012 in generation and
upstream gas

Strong growth potential

21

Enel SpA

Balanced activities

2012 EBITDA Group production mix
Regulated and unregulated businesses
131.4 (TWh) 335.0 (TWh)
10.9%
20.3%
22.5%
35% 14.7%

65% 28.6% 29.1%

8.1% 10.0%
5.1% 5.4%
23.2% 22.1%

2006 2012

Generation & sales Oil & gas Coal Other renewables
Networks CCGT Nuclear Hydro

22

Enel SpA

Upstream & midstream gas integration

Strategic lines 2007 achievements Further targets

Participating in SeverEnergya • Opportunities in
Upstream E&P projects identified target areas

Developing GALSI • LNG terminal in Sicily
Midstream transport, storage, development • Storage capacity
and re-gasification
capacity projects

Gas supply Ensuring long- Additional gas • Gas supply for OGK-5
term gas supply supply from • Additional LNG supply
Algeria • Supporting international
growth

Total 2008-2012 cumulated investment : 1€bn
23

Enel SpA

Renewables (MW)

North America Italy South-Eastern
Europe
Total capacity (MW)
2,781
Other
1,602 Geothermal
7,382
Wind
1,536 86
Mini-hydro
837
472 467
80

2007 2012 2007 2012 2007 2012
3,112 4,752

Latin America Iberia 47
France 678
1,131 857
897
664
504 1,707
360 1,530

2007 2012 2007 2012
2007 2012
2007 2012

Strong investment plan of 6.8€bn in total
EBITDA CAGR 07-12: 12.4% 24

Enel SpA

Nuclear
Spain1,2 Slovakia2

Endesa’s nuclear Slovenske
power plants 2,441MW Elektrarne’s
nuclear power
Technology Plants 2,050MW
Westinghouse-PWR
1,000 MW Development of
Mochovce units 3 & 4

France Technology
Russian-PWR 440MW

EPR agreement with EDF

Anticipated nuclear Romania
capacity

Technology Participation in the
Areva-PWR 1,600MW Cernavoda project for
two 750MW units

Technology
CANDU 750MW

Presence in leading technologies
for nuclear generation
1. Endesa consolidated proportionally (67.05%)
2. 2007 figures 25

Enel SpA

Investment plan (€mn)

Maintenance
Growth 37,244
8,043 8,526 8,025
7,002

3,479 5,648 16,038
3,050
3,928
2,855
2,727

5,047 4,975 21,206
4,115 4,147
2,921

2008 2009 2010 2011 2012 Cumulated 2008-2012

Cumulated investment in innovation: 0.6€bn
Cumulated investment in renewables: 6.8€bn1
1. Excluding large hydro and Endesa 26

Enel SpA

Portfolio optimization

Expected completion

2008
• Disposal to EON
• Disposal to EON

Estimated value
• Non-strategic networks 2008
• Non-strategic networks

11/15 €bn
• Renewable business
• Renewable business 2009

• Potential add-on
• Potential add-on
investments
investments 2012

A wide range of assets available for optimization
27

Enel SpA
Investor Relations

Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan
– Domestic Market



– International



• Annexes

28

Enel SpA
2008-2012 plan - Domestic Market Investor Relations



Leadership in core markets • Leadership in the free energy
• Leadership in the free energy
market
market

• Group margin protection
• Group margin protection
••Vertical integration
Vertical integration
• Excellence in customer service
• Excellence in customer service

• Innovation
• Innovation
••Operational excellence


29

Enel SpA

2006-2012 electricity free market1 evolution (TWh)

+1.9%

377 Key market drivers
358
337 340
45
Self-consumption 44 • Full market opening as from
40 43 July 2007
and losses 54
Captive market 62 89
• Capability to reach and
manage multi-million client
Eligible market 81 124 portfolio
278 • Dual Energy and renewable
225 energy
Free market 154 173

2006 2007 2009 2012

Enel the main driver of growth in the free market

1. Source: Enel’s estimates 30

Enel SpA

Electricity market evolution 2006-20121

Electricity consumption (TWh) Number of customers (mn)

332 37.6
297 314 35.4 35.7 36.1
297 54 ~16%
62 89 ~28%
~48% 124 ~41% 18.6 ~50%
81 27.4 26.3 ~73%
~99% 33.0 ~92%
278
225
154 173 19.0
7.3 0.7 9.8
2.7
-40 -43 -44 -45
2006 2007 2009 2012 2006 2007 2009 2012

Eligible market Captive market
Free market Self consumption and losses

1. Source: 2006 volumes = Terna; 2006 customers = AEEG; 2007-2012 volumes and customers = Enel’s estimates 31

Enel SpA

2007-2012 gas market evolution1,2 (bcm)

53.2 55.1
50.8 1.2
Other uses 1.2
2.1

30.5 31.5
Residential 28.0
market

Industrial 20.7 21.5 22.4
market

2007 2009 2012

Renewed interest in dual energy

1. Excluding gas burnt for thermal generation
2. Source: Ministry of Economic Development and Enel’s estimates 32

Enel SpA

Enel’s targets in 2012

Electricity free market1 (TWh) Electricity regulated market (TWh) Gas (bcm)

Market share22 Market share22 Market share22
Market share Market share Market share
20.8% 32.8% 82.2% 61.0% 9.6% 16.6%
20.8% 32.8% 82.2% 61.0% 9.6% 16.6%
Retail & Business 97.1
Energy intensive 102 9.2
72.2 7.2

81.8
61 4.9
42.2
56.9
33
28.6

13.6 15.3 15.3

2007 2009 2012 2007 2009 2012 2007 2009 2012
• Strong increase in SME and • Volume decline in line with Enel’s • Selection of market segment
residential portfolio increase on the free market consistent with strategy in power
market
• Reduced sales to Single Buyer
• Dual energy offer sustains
• Excellence in service quality customer retention

Fast selective growth of customer base
1. Including technical losses
2. Enel’s estimates 33

Enel SpA

Enel’s domestic targets in 2012: electricity free market1

14.1
Gas, electric and Dual Energy
customers on the free market (mn)

8.7
97.1 (TWh)
4.5
72.2 (TWh) 22.6
9.5 Residential
42.2 (TWh)
40.4 52.2 Large businesses (1-100GWh/ year)
0.1
19.9 Micro & medium businesses (<1GWh/year)
8.6 7.0 7.0 Energy intensive (>100GWh/ year)
13.6 15.3 15.3

2007 2009 2012

Strong penetration in SME and retail segments
Targeting 14mn customers

1. Including technical losses 34

Enel SpA

Enel forward selling 2007-20101

TWh 2007 2008 2009 2010

Residential 0.1 2.6 2.5 2.4

Business and
19.9 31.0 30.2 28.7
microbusiness

Industrial 13.5 15.3 14.7 0.7

Large customers 8.6 8.6 5.8 -

Salvaguardia2 7.7 11.8 - -

TOTAL SALES 49.8 69.3 53.2 31.8

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) 35

Enel SpA

Growth in photovoltaic solar energy through Enel.Si

PV evolution (MWp) 210

Main drivers
128
PV direct • Partnership with world leaders in
PV indirect PV production and supply

46 • Strong incentive schemes

• Large diffusion on final customers
17 28
82
13
4 18

2007 2009 2012

Market Share 34% 40% 42%

Leadership in Photovoltaic Market

36
Source: Enel’s estimates.

Enel SpA

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

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

Personnel costs
External costs 46
9
50 10
45
8 9
40 9 8
35 7 31 7
30
23 6
25 6 5
3
37
20 4
15 3
10
25 2
20
5 1
0 0

2007 2009 2012

Strong focus on cost-to-serve reduction
whilst improving customer satisfaction to
best-in-class level
37

Enel SpA

Acquisition costs in the free energy market

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

16 50 50
14.1 45
14
40
12 32 35
10 30
8
29 25

8.7 20
6
4.5 15
4
10
2 5
0 0

2007 2009 2012

Efficient use of acquisition channels

38

Enel SpA
Investor Relations

Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan
– Domestic Market



– International



• Annexes

39

Enel SpA
2008-2012 plan - Domestic Generation and Energy Management Investor Relations



• Investment plan and
• Investment plan and
operational excellence
operational excellence
Vertical integration • Sustained profits
• Sustained profits

• Innovation
• Innovation



40

Enel SpA

Market scenario

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

Repowering Greenfield

3.4 10.6
0.4
48% 2.3
3.0
4.1
14%
1.1

18%
3.0
20% 3.1 8.3

0.8

2.3

CCGT Oil & Gas ST/OCGT 2007 2008 2009-2010 Target
(under
Renewables Coal
construction)

Dominant role of CCGT technology
Power prices driven by gas/oil prices
Source: Enel’s estimates 41

Enel SpA

Development of the generation mix

CCGT conversion

Clean coal conversion Renewables development
<1% • Oil & gas ST/OCGT: ancillary
17.0% 20.0% services market, price spikes,
export opportunities
45.0%
24.0%
• CCGT conversion program
completed: mid merit technology
50.0%
9.0%
30.0% • Torre Nord 1st unit in operation in
22.0% 2008: increase in base load
production

24.0% 29.0% 30.0% • Increasing renewable energy
development

2002 2007 Target

Coal Oil & gas
Renewables CCGT

Re-powering program on track
42

Enel SpA

Torre Nord development

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

1st unit in operation in 2008, 2nd and 3rd in 2009
2 GW @ 45% thermal efficiency 43

Enel SpA

Growth in renewables (€mn)

Investments (€bn) Additional installed capacity (GW)
3.3
Maintenance
Growth
0.6 1.4
1.6

0.6 2.7 0.4

1.0
2007-2011 2008-2012 2007-2011 2008-2012
Plan Plan Plan Plan

Positive regulatory framework
Wide portfolio of projects with high return on investment
~1.4 GW of new installed capacity by 2012
44

Enel SpA

Innovation
• Enhanced efficiency power plants

• Carbon capture and storage
technologies

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

Building the long term
fossil fuel power plant
sustainability

• Advanced photovoltaic solutions

• Concentrated thermodynamic solar

• Geothermal

• 150€mn investment in 5 years for
Innovation for innovative projects
renewables

Zero emission plants by 2020 is not a
dream, but a realistic objective
45

Enel SpA

CO2

Variable costs1 (€/MWh) Enel’s balance 2008-2012 (mton CO2e)

CO2 costs
Variable costs 73
8
53 40÷45

17
65

36

Expected
Clean coal CCGT Allocations Shortage
emissions

Clean coal strongly competitive even with
very high CO2 prices
2008÷2012 CO2 position already hedged
46
1. Based on forward Brent = 86.5 $/bbl; API2 = 100.3$/ton; CO2 = 22€/ton; €/$ = 1.44

Enel SpA

CO2 Emissions Trading Scheme: 2008-2012

CERs – Existing projects portfolio (Mton)

19 75 ~35
• Among top carbon market players

56 • Competitive sourcing; mark to
market portfolio >500€mn

~40 • Robust portfolio (75% of expected
CERs without any
approval/implementation risk)

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

• Post 2012: Enel’s generation fleet
hedged vs CO2 prices
Registered & To be Expected Direct Traded on
implemented registered use for secondary
& implemented compliance market

47

Enel SpA

Coal and shipping sourcing strategy

Coverage of sourcing needs (%) Coal sourcing diversification

Coal Shipping South Africa

~100 80

70 Colombia
50

Russia
Indonesia
USA

2008 2009 2008 2009
Total portfolio – Mark to market > €1 bn

Major portion of mid term needs secured
Geographical diversification of coal sources
Flexible and competitive shipping sourcing 48

Enel SpA

Power sales & trading

Sales coverage (%) Trading deals in European power markets
(TWh)
~300

100

~140
>50
~80

2008 2009 2006 2007 2008

Strong protection of Increasing business
generation margins opportunities

49

Enel SpA

Targets

2008-2012 Enel additional installed capacity (GW) 2008-2012 total capex = 6€bn

1.9 Maintenance
Coal 20% Growth

Renewables 1.4

80%

• Thermal production

• Thermal variable cost

• Renewables production
50

Enel SpA
Investor Relations

Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan
– Domestic Market



– International



• Annexes

51

Enel SpA
2008-2012 plan - Domestic Infrastructure & Networks Investor Relations



• Cost leadership
• Cost leadership

Vertical integration • Growth in gas distribution
• Growth in gas distribution

• Innovation
• Innovation


52

Enel SpA

Evolution of Enel electricity and gas distribution

Electricity distributed (TWh) Gas distributed (bcm)

Market share11 80% 80% Market share22 11% 16%
Market share 80% 80% Market share 11% 16%

282 5.0
4.1
3.7 3.5
268

255 256

2006 2007 2009 2012 2006 2007 2009 2012

2007-2012 CAGR 2007-2012 CAGR
+2.0% +7.4%

32 million end-users 2.9 million end-users connected
connected by 2012 by 2012

1. Net of network losses, including self-generation
53
2. Not including gas for generation units

Enel SpA

Cost leadership and operational excellence

Opex (€/customer)
80 2001 (128 min ; 80 €/customer)

2002

2003
60 2004

2005
2006

2007 (49 min ; 50 €/customer)
40
Quality of service
(min interruption/year)
130 80 30

930€mn yearly opex savings vs 2001

54

Enel SpA

Network commercial operations

Switching to the free market Commercial quality of service
End users on the free market (thousands)
# of customer request (mn)
Quality index (%) 3.9

+58% 3.8

1,870 98.2 98.3

1,180

June 2007 Dec 2007 2006 2007

Market liberalization supports steady
improvement of commercial quality index
55

Enel SpA

2008-2012 electricity tariff revenues (€mn)

Depreciation
Return on RAB
4,850 4,860 Opex

Regulated commercial
activities 510
Distribution and 680 24%
metering 32%

44%
4,340
4,180

2007 2008

2004-2007 2008-2012

RAB1 ~20€bn ~22€bn

WACC2 7.0% 7.0%

3.5% 2.2%3
X-factor
1.4%4

1.Beginning of period, including commercial activities
2.Real pre-tax
56
3.Applied only to opex and resulting from the weighted average of 1.9% (distribution) and 5.0% (metering)

Enel SpA

Ongoing operational excellence projects

Pegaso “Lean Six Sigma”
Pegaso “Lean Six Sigma” Power and gas integration Work force management
Power and gas integration Work force management

••Continuous improvement
Continuous improvement ••Staff and activity ••5,300 equipped vehicles
Staff and activity 5,300 equipped vehicles
••Waste and variability integration
integration in 2008
in 2008
Waste and variability
reduction
reduction ••Synergies in IT systems ••Field activity
Synergies in IT systems Field activity
••Focus on value-added optimization
optimization
Focus on value-added ••Increase in insourcing
Increase in insourcing
activities
activities ••Paperless operations
Paperless operations

Additional 200€mn opex savings
from 2009 vs 2006
57

Enel SpA

Quality of service

183

140

80
50
Min. interruption/customer
Quality premia
49
44 42 41

2007 2009 2011 2012

430€mn quality premia in 2008-2012

58

Enel SpA

Growth in gas distribution

End-users (thousands)

+7.5%

2,920
2,270 • Drivers for growth:
2,032
– network extension

– bid for new concessions

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

2007 2009 2012

Increase of margins through business development,
cost reduction and power and gas synergies
59

Enel SpA

Innovation

Electronic metering for electricity and gas Smart Grids

• Exploitation of remote • Integration and
management of gas meters management of renewables

• Development of a multi- • Local energy dispatching
metering infrastructure
• Self-fixing grids

210 mn remote readings Co-funded EU Framework
>10 mn operations in 2008 Program 7 project

60

Enel SpA

Targets

Electric network opex 2008-2012 total capex = 6.8€bn

6.7
5.9 5.7 5.4
EU
9%
average
80 24%
55 51%
50 50 48
16%
UK
average 50

2006 2007 2009 2012

€/MWh Gas - Mandatory
€/customer Electricity - Mandatory
Electricity – Quality of service
Electricity – Connections1

Delivery of strong EBITDA results
over the period 2008-12
1.Average customer contribution: 90%
61

Enel SpA
Investor Relations

Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan
– Domestic Market



– International



• Annexes

62

Enel SpA
International Investor Relations



Leadership in core markets • Consolidation of international
• Consolidation of international
presence
presence

– organic growth
– organic growth
Vertical integration – efficiency and integration
– efficiency and integration

• Development of new
• Development of new
••Operational excellence initiatives
initiatives
• Innovation
• Innovation


63

Enel SpA
International Investor Relations

Enel’s current positioning ex Endesa

South-Eastern Europe France & Belgium

Bulgaria EPR nuclear project
Inst. cap. 660MW
Net prod. 3.5TWh Wholesale
supplier
Romania of electricity 1.8TWh
Distr. network 53,227km
EE distributed 7.3TWh Renewables 500MW
Customers 1.4mn (pipeline)
Market share ~11%
(supply)
Market share ~15% North America
(distribution)
Focus on renewables
Greece
447MW CCGT under Inst. Cap. 472MW
development Net prod. 1.2TWh

Russia Centrel Inst. Cap. 80MW
Net prod. 53GWh
Inst. cap. 8.7GW Slovakia
Net prod. 36TWh Inst. cap. 5.6GW
Sales 35TWh Net prod. 21.5TWh
Gas production 28bcm/y
(from 2016)

Figures as of 2007 64

Enel SpA
International - Russia Investor Relations

Market outlook
Electricity demand growth (TWh) Increasing dark spread

1,200 2.5 Gas

Fuel price index
1,100 2.0

Coal
1,000 1.5
CAGR: 2.5%

900 1.0

2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011

• Huge market with dramatic growth potential

• Undergoing liberalization and privatization process
in line with expected schedule

• Opportunity to improve existing capacity

• Coal assets in gas-fired regions will benefit
most from deregulation

65

Enel SpA
Investor Relations
International - Russia

Enel the first vertically integrated energy operator1

SeverEnergya OGK-5 RusEnergoSbyt
Upstream gas Power generation Supply

o

40% of a JV with ENI 59.8% of OGK-5 49.5% of RusEnergoSbyt
20% from 2009 (Gazprom call option)

• At full production, 40%-50% of • 8.7 GW gross capacity, with • A unique opportunity to
OGK-5 demand balanced mix (50% gas and 50% participate in the supply
coal) sector
• Gas reserves: 700 bcm
• 36 TWh generated in 2007, with • 35TWh sold in 2007
• Full production: 28bcm/y (2016) 100% exposure to Western
Russia and Urals • Strong regional reach with
• Partnership with E&P leading 25 offices and 7 branches
companies in a world wide project • EBITDA: 99 €mn
• Customers (#): 249,000
• Value of gas reserves in a tight • Headcount (#): 4,287
domestic market • Headcount (#): ~900

Early mover advantage and reduced risks
in a huge, liberalizing market
66
1.RES figures refer to 100%

Enel SpA
International - Russia Investor Relations

Overview of OGK-5 assets1

2008-2012
Additional capacity: 723 MW
CAPEX: 1.5 €bn
Production: from 38 to 51 TWh
Tver Region

Sverdlovsk Region
Konakovskaya GRES

• Installed capacity 2.4GW
Sredneuralskaya GRES
• Fuel gas
• Production 8.2TWh
• Fuel gas

Moscow ●

Stavropol Region
Sverdlovsk Region

Nevinnomysskaya GRES
Reftinskaya GRES
• Fuel gas
• Fuel coal

Enel owns 59.8% of OGK-5
OGK-5 assets include the largest Russian coal plant

1. Figures as of 2007 67

Enel SpA
Investor Relations
International - Centrel

Market outlook

Interconnection flows Market fundamentals
Nordel
System • Demand growth rate: 1.6% CAGR 2007-2012
1.2 TWh
Russia • Market prices converging to German ones, Europe’s largest
and most liquid market
Poland • High interconnection capacity
5.1 TWh
Czech
Republic
16.3 TWh • Very low reserve margin after shut-down of old plants; need
Slovakia
for additional capacity
Germany
Hungary
Slovenské Elektrárne
5.6 TWh
South Eastern • Capacity (GW) 5.6 • EBITDA 2007 (€mn) 580
Europe
• Production (TWh) 21.5 • Headcount (#) 6,408
Slovakia - Electricity demand growth (TWh)
• 2008-2012 CAPEX (€bn) 1.9

30 Strategic targets
• Expansion of nuclear capacity
29
• Hedging generation through long-term selling contracts
28
• Strengthening our leadership: organic growth and efficiency
27 plan
CAGR: 1.6%
26

25
2007 2008 2009 2010 2011 2012

Enel SpA
Investor Relations
International – South Eastern Europe

Market outlook

Centrel
5,6 TWh Market fundamentals
• Liberalization, GDP and electricity demand growth
Slovenia Romania
Croazia
• Progressive entry into the EU perimeter
Bosnia & Serbia
HerzegovinaKosovo
Italy
5.6 TWh Montenegro • Strong need for investments in new capacity (10GW)
Bulgaria and interconnections
Macedonia

Strategic targets
Albania1 Greece
• Growth in renewables (Romania, Greece)

• One import coal or lignite power plant plus one CCGT
Electricity demand growth (TWh)

Romania
60 Greece - CAGR: 2.6%
• Integration of Muntenia Sud

50 Romania - CAGR: 2.1%
• Hedging of retail position through generation assets
(coal and nuclear) and replicate Enel’s vertically
integrated business model
40
• Renewables: 175 MW of wind (Blue Line)
Bulgaria - CAGR: 1.8% in 2010
30
2007 2008 2009 2010 2011 2012
Figures as of 2007
69

Enel SpA
Investor Relations
International – France and Belgium

Market outlook

Market fundamentals
• Appealing market fundamentals

• Developed and increasingly liquid pools

• High level of interconnection with rest of Europe

• Clear regulatory framework

Enel France1
• Sales (TWh) 1.8

• Anticipated capacity (MW) 200

France - Electricity demand growth (TWh)
Strategic targets
520 France
510 • CCGT and coal power plants

500 • Renewables: Enel Erelis (504 MW pipeline of wind generation
projects)
490
• EPR Nuclear participation: Flamanville 3
480
CAGR: 1.6%
470 Belgium
• Partnership with Duferco for a thermal plant
460 (CCGT - 410MW)
2007 2008 2009 2010 2011 2012
Figures as of 2007
70

Enel SpA
Investor Relations
International – North America

Market outlook

Market fundamentals
• Appealing market fundamentals

• Clear regulatory framework

• Wind market growing at double digit annual rates

Enel North America (Renewables)
• Capacity (MW) 472
• Production (TWh) 1.2
• EBITDA (€mn) 30
Net installed capacity (MW)
• Headcount (#) 224
472
21
7
Strategic targets
130
• 1,130 MW of additional generation capacity, of
Biomass which:
Geothermal
Wind
314 – 59MW geothermal
Mini-hydro
– 1,071MW wind


Enel SpA
Investor Relations
International

Financial targets (€mn)

Russia Other
Centrel SE Europe
EBITDA (€mn) Capex (€mn) Capacity (MW)

2008-2012: 8.2€bn

2,662 2,231 18,531

226 15,383 2,516
438
970

1,219 661
1,427 1,048
8,943
8,220
797 109 6,766
380 320
454 569 472
16
15
306
589 661 898 1,699
186 276
3 280
763 305 5,633 5,295 5,373
580 633 174 563
132 147

2007 2009 2012 2007 2009 2012 2007 2009 2012

Cash generation through
strong financial performances
72

Enel SpA
Investor Relations

Agenda

• Opening remarks

• 2007 results


• 2008-2012 plan
– Domestic Market



– International



• Annexes

73

Enel SpA
Investor Relations
Iberia & Latin America


Consolidation and value • Solid relationship with
• Solid relationship with
enhancement of new acquisitions Acciona to capture strong
Acciona to capture strong
potential growth of Endesa
potential growth of Endesa

••Leadership in core markets • Reinforce leadership
• Reinforce leadership
Leadership in core markets positions in Spain and Latin
positions in Spain and Latin
America
America

••Vertical integration • Integration sales/generation
• Integration sales/generation
Vertical integration and cooperation Enel/Endesa
and cooperation Enel/Endesa
in fuel sourcing
in fuel sourcing

• Implement enhanced synergy
• Implement enhanced synergy
Operational excellence plan including establishment
plan including establishment
of best practices
of best practices

••Growth in renewables and • Strong focus on renewables
• Strong focus on renewables
Growth in renewables and
nuclear
nuclear

74

Enel SpA
Investor Relations
Iberia & Latin America – Spain and Portugal

Strong market fundamentals

Mainland peak demand growth (MW) and
Energy demand growth (TWh)
reserve margin trend
Peninsular
CAGR: 3.8% Extra peninsular
CAGR: 3.6%

303 CAGR 53.5
267 276
251 19
15 16 5.1%
15 49.6
48.1

252 260 284 44.9
236 3.8%

2007 2008 2009 2012 2007 2008 2009 2012

Pool price evolution1 (€/MWh) Reserve margin 1.15 1.12 1.10 1.11
62.0
59.4
57.9
60.0 Market main features
• Towards full market liberalization
High case
• Increase in renewable and CCGT capacity
42.9 Low case
• Decrease in gas/oil and coal

2007 2008 2009 2012

1. Capacity payment not included 75

Enel SpA
Investor Relations
Iberia & Latin America – Spain and Portugal

Regulatory framework in evolution

Key issues Main features Implications
• 100% of customers are eligible Remain the leading player
• Gradual cancellation of regulated tariff: in the liberalized market
Full market – June 2008: HV clients
liberalization – January 2009: MV clients
– January 2011: LV clients > 15KW
• ‘Last resort’ model with recognition of real cost of energy
• Law proposal will be debated in the Spanigh Parliament Common industry position
• Still to be translated into norms
CO2 decree

Electrical • Presently: individual remuneration for each distributor Positive framework for:
with (i) specific efficiency factor and (ii) recognition of • new investments
distribution specific demand increase • losses reduction
remuneration • RAB model regulation approved • quality improvement
model • Time schedule and process established to implement the
digital metering system nationwide

• Availability Remuneration needs to
Capacity • New capacity increase in order to
payment • Investment in desulphurization properly support new
scheme capacity

76

2007 Results And 2008 2012 Business Plan

2007 Results And 2008 2012 Business Plan

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