1 q 2008 consolidated results

Enel SpAInvestor Relations

1Q2008 Consolidated Results

Rome, May 14, 2008

1


Agenda

• 1Q2008 results

• Questions and answers

• Annexes

2


Financial highlights: consolidated

1Q07 1Q08 %€mn

1Q2008 results

1. As of December 31, 20072. Net of discontinued operations

Revenues

EBITDA

EBIT

Group net income

Net debt

9,728

2,332

1,709

943

55,7911

15,082

3,445

2,337

1,004

57,0722

55.0

47.7

36.7

6.5

2.3

3


From EBIT to net income

1Q07 1Q08 %€mn

EBIT

Net financial charges

Interest charges

Fair value of Acciona put option

Other

Net income from equity investments using equity method

EBT

Income tax

Net income (continuing operations)

Net income (discountinued operations)

Net income (including third parties)

Minorities

Group net income

1,709

127147

-

(20)

2

1,584

597

987

987

44

943

2,337

748

777

(110)

81

23

1,612

504

1,108

95

1,203

199

1,004

36.7

489.0

-

-

-

-

1.8

(15.6)

12.3

-

21,9

6.5

1Q2008 results

4


EBITDA evolution (€mn)

7658

289232

1217

87

967

905

981

707

69

189

2,332+120 -274

+1,130 +573,445

Market

1Q07 Market G&EM I&N Intern S&H1 1Q08

G&EMI&N

InternationalS&H

+1,113

1Q2008 results

+62

+18

Ibe&Latam

Iberia&Latam

1. It includes the Engineering and Innovation division and elisions

5


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

1Q07 Generation margin

1Q08Fair value Non-recurring

981

+64 -61-253

707

-274

1Q2008 results

-24

Trading margin

6


Operational data - Italy

22,3 23

54,6

10,4

-1,8-2

52

13,1

+0.9%

86,2 (TWh)85,4 (TWh)

Net production: otherImport

Pumped storage consumptionNet production: Enel

Electricity demand

1. Source: Terna electricity statistical data and Enel’s estimates

1Q2008 results

CoalCCGT

Oil & gasOther renewablesHydro

21.3% 21.0%

35.0%

24.3% 29.1%

14.9% 8.4%

6.5%6.5%

33.0%

1Q07 1Q08

23.0(TWh)22.3 (TWh)

+3.1%

Enel production mix

1Q07 1Q08

7


3.7

39.8 40.727.1 24.0

8.3 12.3

4.8

EnelOther

1Q081Q07 1Q081Q07

-11.4%

-22.9%

+48.2%

+2.3%27.7

31.948.1

Italian market overview: electricity sales1

Total Enel sales (TWh)

-13.2%

Regulated market (TWh) Free market2 (TWh)

+10.2%

53.0

36.335.4

1Q081Q07

+2.5%

1. Excluding losses on the grid. Other operators’ data are Enel’s estimates2. Including self-consumption 3. Including dual energy customers

Enel’s free customers3 (thousand)

458

1,611

1Q081Q07

1Q2008 results

8


EBITDA evolution: domestic market division (€mn)

1Q07 Regulatedmarket

1Q08Freemarket

69+20

+100 189

+120

1Q2008 results

9


905 967

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

+62

905+75 -13 967

1Q07 Electricity 1Q08Gas

1Q2008 results

10


EBITDA evolution: Iberia & Latam division (€mn)

1Q07 Endesa 1Q08Viesgo Enel Latam

+1,108+5 -5 +22 1,217

+1,130

1Q2008 results

Eufer

87

+659

+449

Iberia

Latam

11


191217

41

4012

14

-1-13

18

1

EBITDA evolution: international division (€mn)

+57

CentrelSouth-Eastern Europe (SEE)North AmericaFranceRussia

232 +26 -1

289

+2

+31

1Q07 North America

1Q08SEECentrel France

1Q2008 results

-2

Russia

12


EBITDA evolution: services & holding1 (€mn)

+18

58+13 +5 76

1Q07 Import 1Q08Other

1Q2008 results


13


-57,072

-1,772

-55,791

-1,725

Net debt evolution (€mn)

1. Including 160€mn capital expenditure of Endesa Europa2. Dividends paid by Endesa to third parties

December31, 2007

CapexCash-flowfrom

operations

Extra-ordinaryactivities

Netfinancialcharges

Dividends March31, 2008

-57,516 +1,767 -1,3311 -777-905 -822 -58,844

-1,328

1Q2008 results

14


1,262 1,509

389539

1,307

1,366

8072

3,0303,494

1Q07 1Q08

Wind Mini-hydro

OtherGeothermal

Focus on renewables1

1470 1533

589982

671

67851

49

2,7793,244

+16.7% +15.3%

214-28 218

+1.9%

Capacity (MW)

1Q07 1Q08

Production (GWh)

EBITDA evolution (€mn)

1Q07 1Q08Italy Interna-tional

1. Excluding large hydro and Endesa

1Q2008 results

+32

15


Focus on RussiaFocus on Russia

1Q07 1Q08

2.73

7.00

Coal spark spread (€/MWh)

+156.4%

1Q07 1Q08

1.222.73

Gas Spark spread (€/MWh)

+123.8%

1Q07 1Q08

13.2516.00

+20.8%

Unit price 1 (€/MWh)

1. Unit price excluding capacity payment

1Q2008 results

16


Agenda

• 1Q2008 results


• Annexes

17


Agenda

• 1Q2008 results


• Annexes

18


Italian market overview: electricity1 and gas consumption2

1Q2008 results - Operational annexes

22.3 23.0

54.6

10.4

-1,8-2

52.0

13.1

+0.9%

86,285,4

Net production: otherImport

Pumped storage consumptionNet production: Enel

Electricity demand (TWh)

12.1 13.6

5.7

9.0

5.5

8.1

0.40.4

+10.0%

28,726,1

Gas consumption (bcm)

IndustrialThermoelectricOther

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

1Q07 1Q08 1Q07 1Q08

19


Enel’s gas salesEnel’s gas sales

1Q07 1Q08

1.8

2.2

Volumes sold to final customers (bcm)

+61.1%

1Q07 1Q08

2,347

2,525

+26.7%

Customers (thousand)


0.7

2.9

Iberia&LatamItaly

2,975

450Iberia&LatamItaly

20


Fuel cost evolution

282.6

Oil (€/ton)

351.725.9

Gas (€c/mc)

29.0 61.9

Coal (€/ton)

95.8

44.154.5

Average fuel cost (€/MWh)

1Q07 1Q08

1Q07 1Q08

+23.6%

+54.8%+12.0%+24.5%


1Q07 1Q08 1Q07 1Q08

21


Oil & gas ST/OCGT

1.9

1.3

-

-

1.7

-

1Q08 Group net production: breakdown by source and location

TWh Hydro

4.8

1.0

1.1

-

6.2

0.3

Nuclear

-

5.1

4.3

-

-

-

Coal

8.1

6.0

0.7

1.0

0.5

-

Iberia

Centrel

Italy

SEE

Latam

NorthAmerica

Renewables- other

1.5

0.7

-

0.1

-

0.2

CCGT

6.7

1.8

-

-

3.0

-

1Q08

23.0

15.9

6.1

1.1

11.3

0.5

1Q07

22.3

1.4

6

0.8

0.7

0.4

TOTAL 13.4 57.92.5 4.911.5 31.69.4 16.3


22


Production mix

Group production mix

CoalCCGTOil & gas

NuclearOther renewablesHydro

22.8% 23.1%

16.2%

28.0%

17.1% 19.8%10.5% 8.6%

5.6% 4.3%13.0%

31.0%

1Q07 1Q08

57.9 (TWh)31.6 (TWh)

+83.2%

26.5% 24.5%

26.8%

23.5%

13.6%

3.0%3.4%

44.2%

25.8%8.6%0.1%

34.9 (TWh)9.3 (TWh)

+275.3%

DomesticDomestic

International1International1

21.3% 21.0%

35.0%

24.3% 29.1%

14.9% 8.4%

6.5%6.5%

33.0%

1Q07 1Q08

23.0(TWh)22.3 (TWh)

+3.1%

1Q07 1Q08


23


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

1Q07 1Q08

62.9 64.3

Volumes distributed in Italy (TWh)

+2.2%

1Q07 1Q08

3.2

34.3

+971.8%

Volumes distributed abroad (TWh)

1,5

0,1

1Q07 1Q08

1.4 1.6

Volumes distributed (bcm)

+14.3%

2054

187

1Q07 1Q08

2,036 2,241

+10.1%

End users (thousand)


Iberia&LatamItaly

ItalyIberia&Latam

24


Income statement

1Q2008 results - Financial annexes

1Q07 1Q08 %€mn

Operating revenues

Operating costs

EBITDA

% of revenues

EBIT

% of revenues

9,728

7,396

2,332

24%

1,709

18%

15,082

11,637

3,445

23.0%

2,337

15%

55.0

57.3

47.7

36.7

25


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

750 489

697743

137

186

33 5334

134

58

732

134

Market

G&EM

I&N

International

S&H1

+9.4%

+187.9%

+60.6%

+36.7%

1Q07 1Q08

1,709

2,337

+294%

-34.8%

6.6% Iberia & Latam



26


Balance sheetBalance sheet

December 31, 2007 March 31, 2008 %€mn

Net financial debt

Shareholders’ equity

Net capital employed

55,791

23,789

79,580

57,072

24,906

81,978

2.3

4.7

3.0


27


Debt structureDebt structure

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

• Average debt maturity: 5 years and 6 months

• Average cost of debt: 5.3%

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

• (Fixed+hedged)/Total net debt: 46%

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

December 31, 2007 March 31, 2008 %€mn

Long-term debt

Short-term debt1

Cash2

Net debt

50,816

8,014

-3039

55,791

50,354

10,219

-3,501

57,072

-0.9

27.5

15.2

2.3


28


Domestic MarketDomestic Market

1Q07 1Q08 %€mn

Revenues

EBITDA

EBIT

Capex

Headcount

5,617

69

34

4

4,7721

6,408

189

134

4

4,710

14

174

-

-

-1


1. Figure as of December 31, 2007

29


Domestic Generation & Energy ManagementDomestic Generation & Energy Management

1Q07 1Q08 %€mn

Revenues

EBITDA

EBIT

Capex

Headcount

3,970

981

750

223

8,4321

5,573

707

489

293

8,226

40

-28

-35

31

-2.4

1. Figure as of December 31, 2007 and reclassified according to new organisational structure


30


Domestic Infrastructure & NetworkDomestic Infrastructure & Network

1Q07 1Q08 %€mn

Revenues

Power

Gas

EBITDA

Power

Gas

EBIT

Power

Gas

Capex

Headcount

1,381

1,260

121

905

823

82

697

638

59

315

22,7101

1,669

1,562

107

967

898

69

743

697

46

296

22,437

21

24

-12

7

9

-16

7.0

9

-22

-6

-1



31


Iberia & LatamIberia & Latam

1Q07 1Q08 %€mn

Revenues

EBITDA

EBIT

Capex

Headcount

297

87

58

78

20,2261

4,018

1,217

732

472

20,377

-

-

-

-

-0.7



32


International activitiesInternational activities

1Q07 1Q08 %€mn

Revenues

EBITDA

EBIT

Capex

Headcount

762

232

137

66

11,5281

944

289

186

95

11,319

23.9

24.6

35.8

43.9

-1.8



33


Services & Holding1Services & Holding1

%€mn

Revenues

EBITDA

EBIT

Capex

Headcount

666

58

33

12

5,8322

739

76

53

11

6,176

-11

31

61

-8

6

1Q07 1Q08


1. It includes Engineering&Innovation division and elisions2. Figure as of December 31, 2007

34


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

223293

315296

78

472

66

95

111244

Market

G&EM

I&N

International

S&H1

+505.1%

+43.9%

-8.3%

+67.7%

1Q07 1Q08

698

1,171

+31.4%

-6.0%

Iberia & Latam



35


Disclaimer

THESE SLIDES HAVE BEEN PREPARED BY THE COMPANY SOLELY FOR THE USE DURING THE CONFERENCE CALL ON 1Q2008 RESULTS.

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.

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 CONFERENCE CALL ON 1Q2008 RESULTS 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 RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD-LOOKING STATEMENT. SUCH FACTORS INCLUDE, BUT ARE NOT LIMITED TO: TRENDS IN ENEL’S CORE ENERGY BUSINESS, ITS ABILITY TO IMPLEMENT COST-CUTTING PLANS, CHANGES IN THE REGULATORY ENVIRONMENT AND FUTURE CAPITAL EXPENDITURE.

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

36


Contact us

Investor Relations Team ([email protected])

Visit our website at:

www.enel.it (Investor Relations)

Visit our website at:

www.enel.it (Investor Relations)

• Luca Torchia (Head of IR)

• Elisabetta Ghezzi

• Donatella Izzo

• Federica Todaro

• Angela Tretola

+39 06 83053437

+39 06 83052708

+39 06 83057449

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+39 06 83052062

+39 06 83053437

+39 06 83052708

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+39 06 83052062

1 q 2008 consolidated results

Sports

enel 458other39

domestic market division

international division

domestic gem division

iberia latam division

net financial charges

innovation division

group net income9431