2008 Results And 2009 2013 Business Plan

Enel SpAInvestor Relations

2008 Results2009-2013 Plan

Rome, March 12, 2009

“Solid strategy and strong performance in unsteady times”

1


• 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

Agenda

2


• International expansion completed• International expansion completed

• Financial stability to be reinforced through:

higher cash flow generation

capex management

capital structure strengthening

rights issue

revised dividend policy

Asset disposals

• Financial stability to be reinforced through:

higher cash flow generation

capex management

capital structure strengthening

rights issue

revised dividend policy

Asset disposals

Maintaining A-/A2 rating is key to deploying our plan

Opening remarks

3


5.7 GW22.5 TWh

0.7 GW1.9 TWh

North America

0.6 GW2.5 TWh

Central America

5.4 GW21.7 TWh6.5 TWh

Chile

1.6 GW8.8 TWh5.2 TWh

Peru

2.9 GW12.9 TWh7.3 TWh

Colombia

1.1 GW3.9 TWh14.5 TWh

Brazil

4.5 GW14.4 TWh13.4 TWh

Argentina

8.2 GW40.7 TWh17.4 TWh

Russia

Slovakia

40.3 GW96.3 TWh137.2 TWh

Italy

1.0 TWh

France

22.5 GW85.5 TWh109 TWh

Iberia

0.6 GW3.7 TWh

Bulgaria

9.9 TWh

Romania

Greece

0.1 GW0.2 TWh

1. Including: 100% Endesa net of the assets to be transferred to Acciona, full year OGK-5 production and full-year E. Muntenia Sud salesExcluding Viesgo’s January - June 08 production and sales

2008 Installed capacity (GW)2008 Net production (TWh)2008 Tot sales to final customers (TWh)

Opening remarks

Group overview1

An international integrated energy player

0.1 GW0.9 TWh

Morocco

4


25.4%

17.5%

13.5%

3.8%13.0%

26.8%

14,318 €mn

40%

60%

NetworksGeneration & sales

A well balanced business portfolio

Solid and secured cash flow thanks to regulated business, hedging policies and optimal fuel mix

2008 EBITDA

Group overview

Opening remarks

Forward sales andhedging procurement contracts to protect

margin

Forward sales andhedging procurement contracts to protect

marginStability and high

visibility

Stability and high visibility

Other renewablesHydro

FY08

253.2 (TWh)

Coal

NuclearOil & gas CCGT

2008 production mix

5


• Cash flow improvement

• Asset disposals

• Stronger capital structure

• Cash flow improvement

• Asset disposals

• Stronger capital structure

• Net debt reduction• Net debt reduction

• Rating stability A-/A2• Rating stability A-/A2

Financial stability

Opening remarks

Sustainable organic growth

6


• Cash flow from operations

• Capex

• Net financial charges

• Dividend to Enel’s shareholders

• Dividend to minorities

• Rights issue

• Asset disposals

• Endesa (25% stake)

Opening Remarks

Financial stability

2009- 2013 (€bn)

+68

-33

-13

-13

-5

+8

+10

-12

Free Cash Flow from operations +4Free Cash Flow from operations +4

+10 €bn available for debt reduction by 2013

7


Financial stabilityCash flow improvement – Zenith: efficiency program1 (€mn)

~1,300

Δ Working capital 2009-11 ~ 2,700

Support EBITDA and boost cash generation in unfavourable market conditions

Opening remarks

Cumulative EBITDA2009-2011

~1,400

Impact on pre-taxcash-flow vs 2008

Total pre-taxcash- flow 2009-2011

1. Excluding Endesa

8


Financial stabilityCash Flow improvement - Capex optimization (€mn)

1. Figures include 100% Endesa

Opening remarks

21,206

16,038

25,147

19,192

Cumulative

37,244

Cumulative adjusted1

44,339

OLD PLAN2008-2012

16,940

15,685

Cumulative

32,626

NEW PLAN2009-2013

Maintenance Growth

3,782 3,1834,207

3,043 2,725

3,879

3,341

3,108

2,673 2,684

4,198

4,370

7,661

2009 2010 2011 2012 2013

6,5247,315

5,716 5,409

8,568

2008 adjusted1

9


Expected net debt reduction of ~10€bn by 2010

Financial stabilityAsset Disposals

Opening remarks

• HV electricity grid

• Gas distribution network

(majority stake)

• Enel Green Power

(minority stake)

• HV electricity grid

• Gas distribution network

(majority stake)

• Enel Green Power

(minority stake)

6€bn

2009 2010

• Other non strategic assets• Other non strategic assets 2.4€bn1.6€bn

10


8 €bn

Strengthening our capital structure

Rights issueRights issue Dividend policyDividend policy

2009

Financial stabilityCapital structure optimization

Opening remarks

1. Starting from 2009 results

OLDOLD NEW1NEW1

49 €c/share flat

60% pay out on ord. income

11


Net debt at 41 €bn by 2013Net debt/EBITDA below 2.5x by 2013

Financial stabilityConclusions

Opening remarks

• Cash flow to reduce debt• Capex to support organic growth

Maintain A-/A2 ratingAttractive dividend yield

• Cash flow to reduce debt• Capex to support organic growth

Maintain A-/A2 ratingAttractive dividend yield

12


Luigi FerrarisExecutive Vice PresidentAccounting, Planning and Control

2008 Results

13


Financial highlights: consolidated

FY07 FY08 %€mn

1. Excluding net debt of assets held for sale

Revenues

EBITDA

EBIT

Group net income

Net debt

43,673

10,023

6,990

3,977

55,7911

61,184

14,318

9,541

5,293

49,9671

40.0

45.5

40.7

35.2

-10.4

2008 results

FY07 pro-forma

43,688

9,840

6,781

3,916

55,7911

14


EBIT

Net financial chargesInterest charges

Financial Income

Fair value of Acciona put option

OtherNet income from equity investmentsusing equity method

EBT

Income tax

Net income (continuing operations)

Net income (discontinued operations)

Net income (including third parties)

Minorities

Group net income

EPS (€)

6,990

(914)1,390

(301)

(136)

(39)

12

6,088

(2,002)

4,086

127

4,213

236

3,977

0.64

From EBIT to net income

FY07 FY08 %€mn

2008 results

FY07 pro-forma

6,781

(885)1,361

(301)

(136)

(39)

12

5,908

(1,956)

3,952

179

4,131

215

3,916

0.63

9,541

(3,210)3,016

-

(34)

228

48

6,379

(585)

5,794

240

6,034

741

5,293

0.86

40.7

--

-

-

-

-

8.0

-70.1

46.6

-

46.1

-

35.2

-

15


13.5

74.2

5.0

36.3

227.2

20.1

-13.1

45.5

Group EBITDA breakdown: 2007 pro-forma

FY07 FY07 pro-forma %€mn

G&EM - Italy

Market - Italy

I&N - Italy

International

Iberia&Latam

Enel Green Power

S&H1

Total

3,541

325

3,726

2,380

-

-

51

10,023

2,743

318

3,543

766

1,420

989

61

9,840

2008 results

FY08

3,113

554

3,719

1,044

4,647

1,188

53

14,318

1. Including the Engineering and Innovation division

16


2,743 3,113

554318

3,7193,543

1,044

766

4,647

1,420

1,188

989

53

61

Group EBITDA evolution (€mn)

9,840 +370 +236 +176 +278

+3,227 14,318

1. Including the Engineering and Innovation division

FY07 G&EMItaly

MarketItaly

I&NItaly

Iberia &Latam

S&H1 FY08

+45.5%

Inter-national

-8

MarketI&N

S&H1

G&EM

Iberia & LatamInternational

2008 results

EGP

+199

EGP

17


EBITDA evolution: G&EM Italy (€mn)

FY07 Generation margin

FY08Trento capital gain

Other

2,743

+337 +104+328

3,113

+13.5%

Trading margin

-399

2008 results

18


Forward electricity sales: focus on Italy

2009 2010

100 %3%

~45%

Level of total production hedged (%)

UnhedgedHedged

~55%

2008 results

97%

100 %

19


G&EM – Italy: fuel cost evolution

300.8

Oil (€/ton)

393.9

26.9

Gas (c€/mc)

34.368.8

Coal (€/ton)

104.6

49.363.7

Average fuel cost (€/MWh)

FY07 FY08

FY07 FY08FY07 FY08 FY07 FY08

+29%

+52%+28%+31%

2008 results

20


Focus on RussiaFocus on Russia

FY07 FY08

5.7

7.2

Coal dark spread (€/MWh)

FY07 FY08

3.9 3.8

Gas spark spread (€/MWh)

FY07 FY08

13.816.3

Unit price1 (€/MWh)

1. Unit price excluding capacity payment

FY07 FY08

Net production (TWh)

40.736.3

2008 results

21


EBITDA evolution: focus on Endesa1

1. 100% Endesa results as released on February 26, 2009. Endesa’s GAAP

Spain&Portugal

2008 results

Other

6,368

6,895

FY07

+8%

Iberia Latam FY08

+140

+427

Other

3,790 3,930

2,5412,968

Latam

37

-40

-3

22


EBITDA evolution: focus on Enel Green Power (€mn)

FY07 Italy FY08Spain Other

989 +57

+51 +19 1,188

+20.1%

North America

-4

2008 results

+62+15

South America

Greece

23


-49,967-55,791

-795

-1,725

Net debt evolution (€mn)

December31, 2007

Capex1Cash-flowfrom

operations

Extra-ordinary

activities2

Netfinancialcharges3

Dividends4 December31, 2008

+14,110-7,3971 +6,5972

-3,1553

2008 results

Discontinued

operations

Discontinued

operations

-3,4014

1. Including investment of Viesgo, Endesa Europe, Ecyr and Enel Rete Gas equal to 895€mn2. Including change of scope of consolidation of the debt for 1,689€mn3. Current net interest charge4. Including 369€mn of dividends relating to minorities

+6,754

24


Fulvio ContiChief Executive Officer

2009 – 2013 Plan

25


2009 – 2013 Plan

Group strategyKey Priorities

• Consolidation and integration• Consolidation and integration

• Renewables and innovation• Renewables and innovation

• Operational excellence• Operational excellence

• Leadership in strategic markets• Leadership in strategic markets

• Financial stability• Financial stability

Strategy confirmed and well on track

26


2009 2010 Long-term

(2013)

Brent ($/bbl)

50 5583

Coal1 ($/ton)

2009 2010 Long-term

(2013)

60 70100

1. CIF ARA (Rotterdam)2. Peninsular3. Brazil, Chile, Colombia, Peru, Argentina

Base assumptions of our plan

CommoditiesCommodities Electricity demand (2008-2013 CAGR) Electricity demand (2008-2013 CAGR)

2009 – 2013 Plan

1.1%

1.7%

1.2%

1.1%

4.6%

Italy

Spain

Russia

Slovakia

Latam

2

3

27


Group strategyGeneration & Energy Management - ItalyStrategy and targets

2009 – 2013 Plan

• Enhanced competitiveness

of the energy portfolio

• Enhanced competitiveness

of the energy portfolio

• Margin protection• Margin protection

• Excellence in operations• Excellence in operations

70%

30%

Maintenance Growth

2008 2010

31%

40%

% of coal production in Italianproduction mix1

+1.9GW clean coal

• 2009 – 2013 capex programme• 2009 – 2013 capex programme

1. Including Italian activities of Enel GreenPower

2009-2013 total capex = 3.7€bn

3%

2.6%

2008 2010

Plant imbalance

28


• Leadership in free markets• Leadership in free markets

• Operational excellence in

customer service

• Operational excellence in

customer service

2009-2013 plan

Electricity free market sales (TWh)

2008

54

71

2013

+31%

Electricity free customers (mn)

2008 2013

2.4

8.5

+254%

Cost to serve (€/customer)

2008 2013

45

24

-47%

Group strategyMarket - ItalyStrategy and targets

29


• Cost leadership• Cost leadership

• Operational excellence• Operational excellence

2009-2013 plan

Group strategyInfrastructure and networks - ItalyStrategy and targets

• 2009 – 2013 capex programme • 2009 – 2013 capex programme

Cash cost (€/customer)

2008

8670

2013

-19%

Duration of interruptions (min/customer)

2008

5647

2013

-16%


• Electric vehicles• Public lighting (LED) • Gas - Digital meter

Smart Grids

• Innovation• Innovation

30



• Efficiency and organic growth• Efficiency and organic growth

2009-2013 plan

EBITDA (€mn)

2008

724 302

2010

+26%


Slovakia RussiaOther

28%27%

45%

Group strategyInternationalStrategy and targets

76

1,3111,044

Slovakia RussiaOther

244674

335

31


90%

10%



2009-2013 plan


Maintenance Growth

Group strategyInternational – Focus on SlovakiaStrategy and targets

New nuclear capacity c900MW by 2013

EBITDA (€mn)

2008

724

2010

674

86%

2008

92%

2013

Nuclear plants uptime

32


69%

31%



2009-2013 plan

EBITDA (€mn)

2008

761

2010

2009-2013 total capex = 2.1€bnMaintenanceGrowth

302

Group strategyInternational – Focus on RussiaStrategy and targets

New CCGT capacity - 2x410MW on stream by 2011First gas from Severenergia in 2010

78%

2008

81%

2013

Plant availability

1. FY 2008 OGK-5, 153 €mn

33


58%

11%

31%

• Leadership in key markets• Leadership in key markets

• Organic growth through capex• Organic growth through capex

2009-2013 plan

EBITDA (€bn)

2008

7.0

2010

2009-2013 total capex = 13.1 €bn1

Iberia LatamOther

7.0

Iberia LatamOther

3.64.0

Group strategyEndesaStrategy and targets

• New renewables programme• New renewables programme

• Synergy plan of 813 €mn by 2012• Synergy plan of 813 €mn by 2012

3.0 3.3

0.1

1. Includes ESB

34


52%

3%

45%

• Leading and balanced position in

generation and sales

• Leading and balanced position in

generation and sales

• Balanced fuel mix• Balanced fuel mix

2009-2013 plan

EBITDA (€bn)

2009-2013 total capex = 7.6 €bn

3,2463.64.0

• Moving towards a more stableregulatory scenario

• Moving towards a more stableregulatory scenario

2008 2010

Group strategyEndesa – Focus on IberiaStrategy and targets

• New renewables programme• New renewables programme

DistributionGenerationother

33%

67%

MaintenanceGrowth• Leadership in distribution enhanced

by digital meters and efficiency plan

• Leadership in distribution enhancedby digital meters and efficiency plan

35


• Leadership in countries with

expected positive GDP growth

• Leadership in countries with

expected positive GDP growth

2009-2013 plan

2009-2013 total capex = 4.1 €bn

Group strategyEndesa – Focus on LatamStrategy and targets

• Organic growth through capex• Organic growth through capex

• Clear and stable regulatory

framework

• Clear and stable regulatory

framework

EBITDA (€bn)

3.33.0

2008 2010

52%48%

DistributionGeneration

39%

61%

• 2009 – 2013 capex programme • 2009 – 2013 capex programme

MaintenanceGrowth

36


200300

400

548

50

100

150

200

264

100

813

2008

2,541

2009 – 2013 Plan

2009 2010 2011 2012

83

213

105

Group strategyEndesa – Focus on synergies (€mn) Strategy and targets

717

613

436

266

CapexEBITDA

37


A well diversified portfolio in terms of technologies and geographies

North America (ENA)

Italy

1. France and Greece

Latin America (ELA)

OtherGeoWindHydro

2,547

667

399748

103

Eufer Europe1

FY08

4,464

Group strategyEnel Green Power Overview (2008 – MW)

678

1,237

2,498

51

38


86%

14%

• Sustainable and profitable growth• Sustainable and profitable growth

• Low dependence on incentives• Low dependence on incentives

2009-2013 plan

EBITDA (€mn)

1,2031,188

20102008

MaintenanceGrowth

Group strategyEnel Green Power Strategy and targets

Total capacity addition of +1.9GW 2009 -2013

• 2009 – 2013 capex programme• 2009 – 2013 capex programme

• Strong cash flow from operations• Strong cash flow from operations

27% on average for 200827% on average for 2008

5 €bn in 2009-20135 €bn in 2009-2013

2009-2013 total capex = 3.7 €bn

39


20081

• EBITDA

• Group net income

• Group net debt

• 14.3

• 3.72

• 49.9

Financial Targets

Enel’s commitment (€bn)

Solid performance in a deteriorating economic environment

2010

• 16

• 4

• 45

1. 2008 actual results2. Ordinary net income

2013

• 18

• 5

• 41

40


• 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

Agenda

41


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 MADEONLY 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.

42


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)

• Pedro Cañamero

• Elisabetta Ghezzi

• Donatella Izzo

• Federica Todaro

• Angela Tretola

+39 06 83053437

+39 06 83055292

+39 06 83052708

+39 06 83057449

+39 06 83059502

+39 06 83052062

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