SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of November 2007
Enel Società per Azioni
Viale Regina Margherita 137
00198, Rome
Italy
Indicate by check mark whether the registrant files or will file annual reports under cover of
Form 20-F or Form 40-F.
Form 20-F
þ
Form 40-F
o
Indicate by check mark whether the registrant by furnishing the information contained in this
Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes
o
No
þ
If Yes is marked, indicate below the file number assigned to the registrant in connection
with Rule 12g3-2(b):
Certain of the information included in this Report is forward looking and is subject to important
risks and uncertainties that could cause actual results to differ materially. The Companys core
business includes the generation, distribution and sale of electricity and the distribution and
sale of gas. The Companys outlook is predominately based on its interpretation of what it
considers to be the key economic factors affecting its businesses. Forward-looking statements with
regard to the Companys businesses involve a number of important factors that are subject to
change, including: the many interrelated factors that affect customers demand, including general
economic conditions, industry trends, and increased competition in each of the Companys markets;
the Companys ability to implement successfully its cost reduction program; the Companys ability
to implement its strategy focused on its core energy business; future capital expenditure and
investments; legislation, particularly that relating to the regulation of the markets for
electricity and other public utility services, tariff regimes, the environment, trade and commerce
and infrastructure development; the actions of competitors in various industries in which the
Company competes; production difficulties, including capacity and supply constraints; labor
relations; interest rates and currency exchange rates; political and civil unrest; and other risks
and uncertainties.
The information included in this Report has been given to Commissione Nazionale per le Società e la
Borsa (CONSOB), the Italian public authority regulating Italian capital markets, and/or to Borsa
Italiana S.p.A.
,
the company owning and managing the Mercato Telematico Azionario, the Italian
automated screen-based trading system on which the ordinary shares of Enel Società per Azioni are
listed, or is otherwise furnished pursuant to General Instruction B to the General Instructions to
Form 6-K.
Press Release
Enel Board Approves Results At 30 September 2007
Revenues: 28,760 million euro (28,621 million euro as of 30 September
2006, +0.5%)
EBITDA:6,711 million euro (6,264 million euro as of 30 September 2006, +7.1%)
EBIT: 4,751 million euro (4,885 million euro as of 30 September 2006,
-2.7%)
Group net income: 2,678 million euro (2,640 million euro as of 30 September 2006,
+1.4%)
Net financial debt: 24,769 million euro (11,690 million euro as of
31 December 2006, +111.9%)
Enels strategy on the Russian market presented to the financial community
This press release uses a number of alternative performance indicators not envisaged in the
IFRS-EU accounting principles (EBITDA, net financial debt and net capital employed). In accordance
with recommendation CESR/05-178b published on November 3, 2005, the criteria used to calculate
these indicators are described in the attachments.
Rome, 8 November 2007
The Board of Directors of Enel SpA, chaired by Piero Gnudi, today examined
and approved the results for the third quarter and the first nine months of 2007.
Consolidated financial highlights for the first nine months of 2007
(Millions of euro)
|
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|
|
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First nine
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|
First nine
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|
months of 2007
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|
months of 2006
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|
Change
|
|
Revenues
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28,760
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|
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28,621
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|
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+0.5
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%
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EBITDA
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|
6,711
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6,264
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+7.1
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%
|
EBIT
|
|
|
4,751
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4,885
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|
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-2.7
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%
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Group net income
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2,678
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2,640
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+1.4
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%
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Net financial debt
|
|
|
24,769
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*
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|
11,690
|
**
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|
|
+111.9
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%
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|
|
|
*
|
|
as of 30 September 2007,
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**
|
|
as of 31 December 2006
|
Fulvio Conti,
Enels CEO, commented: The positive performance in the first nine months of the year
confirm our expectations of improved operating performance for the full year 2007 compared to 2006.
The International Division recorded a significant improvement of its results, and is now boosted by
the successful takeover of Endesa and the expansion in Russia. Such transactions complete
substantially
Enels international expansion, having the Group reached an optimal size, diversifying and
improving its technology mix and presence in European and American markets.
OPERATIONAL HIGHLIGHTS
Electricity and Gas Sales
Enel Groups electricity sales to end customers in the first nine months of 2007 stand at 127.3
TWh (1 TWh =1 billion KWh) of which 106.5 TWh in Italy and 20.8 TWh abroad.
In Italy, overall sales of electricity to end customers remained essentially in line with those for
the first nine months of 2006 (-0.5%). In particular, sales on the formerly regulated market fell
from 91.8 TWh in the first nine months of 2006 to 78.0 TWh of the corresponding period in 2007
(-15.0%) owing to the progressive opening of the market which conversely led to an 87.5% increase
in sales on the free market, which rose from 15.2 TWh in the first nine months of 2006 to 28.5 TWh
during the same period in 2007.
Electricity sales abroad more than doubled, soaring from 10.0 TWh in the first nine months of 2006
to 20.8 TWh in the same period in 2007 (+108.0%) essentially as the result of the contribution of
the Russian trading company RusEnergoSbyt which was consolidated as of the end of June of 2006.
In the domestic gas market, Enel continued its strategy of focusing on small-to-medium-sized firms
(i.e. those with a consumption of less than 200,000 cubic meters a year). This strategy has led,
compared to the same period last year, to a 6.3% increase in the number of customers (2,433,788 at
the end of September 2007), notwithstanding a reduction of volumes sold (from 3.2 billion cubic
meters in the first nine months of 2006 to 2.9 billion cubic meters in the same period of 2007).
This was chiefly due to the warm weather conditions experienced in the first months of 2007 which
consequently reduced the demand for gas in the residential as well as commercial segment by more
than 15%.
Power Generation
Enel Groups total net power generation in the first nine months of 2007 amounted to 95.9 TWh, of
which 69.9 TWh in Italy and 26.0 TWh abroad.
59.0% of the net production in Italy and abroad is generated by thermoelectrical power sources,
while 29.9% is generated by renewable sources (hydroelectrical, wind, geothermal and biomass) and
11.1% from nuclear sources.
In Italy, the net production fell by 12.7%, going from 80.1 TWh to 69.9 TWh, owing both to a growth
in imports (+13.8%) and gas shortage occurred in the first quarter of 2006. In particular,
thermoelectrical generation (-8.0 TWh) and hydroelectrical production (-2.4
TWh) experienced a decrease.
The net production abroad rose from 18.5 TWh in the first nine months of 2006 to 26.0 TWh for the
same period in 2007 (+40.5%). Such increase was mainly due to the consolidation of Slovenské
élektrárne, which was carried out starting from the second quarter of 2006.
Distribution of Electricity and Gas
Electricity distributed by the Group in the first nine months of 2007 amounted to 201.0 TWh, of
which 191.6 TWh in Italy and 9.4 TWh abroad. The volumes distributed in Italy are substantially in
line with the figures posted in the same period of 2006 (+0.6%) and essentially reflect the trend
in the domestic electricity demand (+0.2%). Electricity volumes distributed abroad are in line with
the figures of the first nine months of 2006 (9.3 TWh).
Gas distributed in Italy in the first nine months of 2007 amounted to 2.2 billion cubic meters, a
decrease of 0.4 billion cubic meters against the same figures registered in the same period of 2006
(-15.4%) largely due to the warm weather conditions experienced in the first months of 2007.
FINANCIAL HIGHLIGHTS
Consolidated results for the first nine months of 2007
Revenues
totalled 28,760 million euro in the first nine months of 2007, substantially in line
(+0.5%) with those of the same period of 2006 (28,621 million euro).
EBITDA
totalled 6,711 million euro in the first nine months of 2007, compared with 6,264 million
euro posted in the same period of 2006, an increase of 447 million euro (+7.1%). The improvement is
due to expansion in all of the operating Divisions, partially offset by lower margins by the Parent
Company and in the Services and Other Activities area. More specifically, there was an EBITDA
increase equal to 41.5% in the International Division, 15.1% in the Domestic Sales Division, 9.3%
in the Domestic Infrastructure and Networks Division and 7.8% in the Domestic Generation and Energy
Management Division.
EBIT
came to 4,751 million euro in the first nine months of 2007, a drop of 134 million euro
(-2.7%) against the same period of 2006. This decline largely reflects the contribution of gross
income generated in 2006 in the amount of 263 million euro generated from the exchange of 30.97% of
the share capital of Wind for 20.9% of Weather Investments.
Group net income
amounted to 2,678 million euro compared with 2,640 million euro for the same
period of 2006 (+1.4%) which also included a net income of 256 million euro coming from the
aforementioned exchange of Wind for Weather shares. The growth of
Group net income is also attributable to the positive effect of net dividends received by Endesa in
the amount of 296 million euro.
Net capital employed
at 30 September 2007 came to 43,745 million euro, 43.4% of which was financed
by total shareholders equity of 18,976 million euro and the remaining 56.6% by net financial debt
of 24,769 million euro. This figure increased of 13,079 million euro (+111.9%) from 11,690 million
euro as of 31 December 2006, primarily as a result of important foreign acquisitions abroad in the
process of being completed as of 30 September 2007. The
debt/equity ratio
as of 30 September 2007
was 1.31, compared with 0.61 at end-2006.
Capital Expenditure
in the first 9 months of 2007 amounted to 2,518 million euro, an increase of
723 million euro against the same period of 2006 (+40.3%). Growth mainly stems from increased
investments in power plants in Italy and abroad.
Group employees
at 30 September 2007 stood at 56,057, a decrease of 2,491 units from the 58,548
employees at the end of 2006. The reduction is mainly due to a negative net balance between new
hires and terminations of 2,635 units.
Consolidated Results for the Third Quarter of 2007
Consolidated financial highlights for the third quarter of 2007
(millions of euro)
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Third quarter
|
|
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Third quarter
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|
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2007
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|
|
2006
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|
|
Change
|
|
Revenues
|
|
|
9,903
|
|
|
|
9,556
|
|
|
|
+3.6
|
%
|
EBITDA
|
|
|
2,249
|
|
|
|
1,903
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|
|
|
+18.2
|
%
|
EBIT
|
|
|
1,617
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|
|
|
1,320
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|
|
|
+22.5
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%
|
Group net income
|
|
|
696
|
|
|
|
662
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|
|
|
+5.1
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%
|
Revenues
for the period came to 9,903 million euro, an increase of 3.6% over the third quarter of
2006.
EBITDA
in the third quarter of 2007 totalled 2,249 million euro compared to 1,903 million euro for
the same period of 2006, an increase of 346 million euro (+18.2%). Such increase reflects an
overall growth across all operating Divisions partially offset by the reduction in margins by the
Parent Company and the Services and Other Activities area.
EBIT
for the third quarter of 2007 totalled 1,617 million euro, an increase of 297 million euro
(+22.5%) compared to the same period of 2006. This result, compared to the increase in Ebitda,
reflects higher depreciation, amortization and impairment losses amounting to 49 million euro
(+8.4%).
Group net income
in the third quarter of 2007 amounted to 696 million euro, an increase of 34
million euro (+5.1%) compared to the same period in 2006.
SIGNIFICANT EVENTS FOLLOWING THE CLOSING OF THE THIRD QUARTER
PUBLIC TENDER OFFER FOR ENDESA
On
5 October,
the Comision Nacional del Mercado de Valores (CNMV) announced that the level of
acceptances of the Public Tender Offer jointly launched by Enel Energy Europe (EEE) and Acciona was
equal to 46.05% of Endesas share capital. In accordance with the agreement stipulated by EEE and
Acciona, EEE acquired 42.08% and Acciona acquired 3.97% of Endesas share capital. Following the
conclusion of the Public Tender Offer, EEE and Acciona respectively own 67.05% and 25.01% of
Endesas share capital.
On
18 October
, the Board of Directors of Endesa, through co-optation, appointed several new board
members in order to align its composition to the Endesas ownership structure deriving from the
outcome of the Public Tender Offer.
On
22 October
, the Spanish Ministry of Industry, Tourism and Trade notified the partial acceptance
of the administrative appeal filed by Enel and Acciona against certain conditions imposed by the
Spanish National Energy Commission (CNE) on the Public Tender Offer for Endesa.
OGK-5
On
24 October
, Enel, through its subsidiary Enel Investment Holding (EIH), entered into an
agreement for the purchase from Credit Suisse of 7.15% of the share capital of OGK-5 for a total
consideration of 10,769 million rubles (equal to approximately 304 million euro). Following the
completion of the transaction, EIH holds approximately 37.15% of OGK-5s share capital and, having
exceeded the 30% threshold, is committed, in compliance with Russian laws and regulations, to
launch a Public Tender Offer for the entire share capital of the company at a price per share no
lower than 4.4275 rubles (the highest purchase price paid by the Offeror for OGK-5 shares over the
last six months).
BLUE
LINE
On
24 October
, Enel, through its subsidiary EIH, completed the acquisition for 1.1 million euro of
100% of Blue Line, a Romanian company which owns rights to develop wind power projects in the
Dobrogea region with a capacity of about 200 MW. The projects are planned to become operational in
2010.
OUTLOOK
With the success of the Public Tender Offer for Endesa and the strengthening of the Groups
presence in Russia, Enel has essentially completed its international expansion and transformed
itself into a multinational energy company.
It is expected that the operating cash flows generated by the Enel Group as a whole will ensure
sufficient resources to meet the financial commitments associated with the above mentioned
acquisitions as well as to respect the dividend policy announced to the markets.
Work also continues on programs to achieve operating excellence and growth in the domestic free
market, as well as investment plans for research and in the area of renewable energy sources.
It is expected that the new international scale achieved and all the activities carried out in the
various areas will generate positive effects already in 2007, whose financial results are expected
to improve compared with that of 2006.
ENELS STRATEGIES IN THE RUSSIAN MARKET
In the conference call dedicated to illustrate the results of the first nine months of 2007 to the
financial community, the CEO Fulvio Conti will provide an update of the strategy being followed by
the Group in the Russian market. We are offering an advance summary of this update. The entire
presentation will be available on the following web site
www.enel.it
,
in the
Investor Relations
section,
concurrently with the beginning of the conference call scheduled for 5:30 pm today.
The Groups presence in the Russia dates back to 2004, when Enel was awarded a three-year contract
for the management and doubling of the power output of a combined-cycle power plant near Saint
Petersburg. Enels presence has since then continued to develop until now thanks to acquisitions in
upstream gas (through a 40% stake in Enineftegaz), power generation (by means of a stake in OGK-5,
which is currently equal to 37.15%) and sale (through a 49.5% stake in RusEnergoSbyt, the largest
power supplier in Russia) which has led Enel to become the first foreign group to have a vertically
integrated presence in the sector.
The Russian energy market is today extremely attractive to investors. It is a market which enjoys a
growth rate which is double that of Western European countries (with a demand for new generation
capacity estimated at 40 GW until 2010) and is characterized by a liberalization process which
should be completed by 2011. Against this backdrop, OGK-5 (the power generation company which Enel
intends to control, following the Public Tender Offer which is currently being examined by the
FSFR, the Russian financial market regulator) operates in an area experiencing a significant growth
rate, i.e. that of the
European part of Russia and the Urals, where it has a well-balanced coal and gas fuel mix.
The OGK-5 development plan for the 2007-2012 period foresees investments amounting to 2.37 billion
euro, of which 670 million euro in new generation capacity, 495 million euro in works aimed at
improving the existing power plants environmental compatibility and safety and 1.2 billion euro to
modernize and improve the efficiency of the plants themselves in order to extend their useful life.
It is expected that such investments will be financed through OGK-5 operating cash flow.
Fulvio Conti concluded his presentation by saying: We foresee that Enels vertically integrated
position and expertise in the Russian energy market can create additional value for OGK-5 and boost
the Groups profitability with sizable operating results.
A detailed disclosure on the expected impacts on Enel results due to its strategy on the Russian
market will come in March 2008 on the occasion of the new industrial plan presentation.
At 5:30 pm a conference call will be held to present the results for the first nine months of 2007
and Enels strategies in the Russian market to financial analysts and institutional investors.
Journalists are also invited to listen in on the call.
The tables of the results of the main business areas (which do not include intercompany
eliminations and the results of the Parent Company), together with the condensed consolidated
income statement, balance sheet and cash flow statements are attached below. A summary of the
alternative performance indicators is also attached.
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 in this press release corresponds to document
results, books and accounting records.
ALTERNATIVE
PERFORMANCE INDICATORS
The following section describes a number of alternative performance indicators, not envisaged
under the IFRS-EU accounting principles, which are used in this press release in order to
facilitate the assessment of the Groups performance and financial position.
|
|
EBITDA
: an indicator of Enels operating performance, calculated as Operating income plus
Depreciation, amortization and impairment losses and deducting Income from equity exchange
transaction.
|
|
|
|
Net financial debt
: an indicator of Enels financial structure, calculated as the sum of
Long-term loans, the current portion of such loans and Short-term loans net of
|
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Cash and
cash equivalents and the current and non-current financial assets (financial receivables and
securities other than equity investments) included in the Other current assets and Other
non current assets.
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Net capital employed
is calculated as the sum of Current assets and Non-current assets
net of Current liabilities and Non-current liabilities excluding items previously
considered in the definition of Net financial debt.
|
Domestic
Sales Division
Results
(euro million)
:
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|
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|
|
|
|
|
|
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|
|
|
|
|
|
First nine
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|
|
First nine
|
|
|
|
|
|
|
Third
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|
|
Third
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|
|
|
|
|
|
months
|
|
|
months
|
|
|
|
|
|
|
quarter
|
|
|
quarter
|
|
|
|
|
|
|
2007
|
|
|
2006
|
|
|
Change
|
|
|
2007
|
|
|
2006
|
|
|
Change
|
|
Revenues
|
|
|
16,066
|
|
|
|
15,914
|
|
|
|
1.0
|
%
|
|
|
5,449
|
|
|
|
5,138
|
|
|
|
6.1
|
%
|
Ebitda
|
|
|
191
|
|
|
|
166
|
|
|
|
15.1
|
%
|
|
|
76
|
|
|
|
12
|
|
|
|
|
|
Ebit
|
|
|
18
|
|
|
|
85
|
|
|
|
-78.8
|
%
|
|
|
41
|
|
|
|
(20
|
)
|
|
|
|
|
Capex
|
|
|
24
|
|
|
|
22
|
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|
9.1
|
%
|
|
|
7
|
|
|
|
8
|
|
|
|
-12.5
|
%
|
Domestic
Generation and Energy Management Division
Results
(euro million)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First nine
|
|
|
First nine
|
|
|
|
|
|
|
Third
|
|
|
Third
|
|
|
|
|
|
|
months
|
|
|
months
|
|
|
|
|
|
|
quarter
|
|
|
quarter
|
|
|
|
|
|
|
2007
|
|
|
2006
|
|
|
Change
|
|
|
2007
|
|
|
2006
|
|
|
Change
|
|
Revenues
|
|
|
12,383
|
|
|
|
11,719
|
|
|
|
5.7
|
%
|
|
|
4,559
|
|
|
|
3,814
|
|
|
|
19.5
|
%
|
Ebitda
|
|
|
2,861
|
|
|
|
2,653
|
|
|
|
7.8
|
%
|
|
|
950
|
|
|
|
795
|
|
|
|
19.5
|
%
|
Ebit
|
|
|
2,162
|
|
|
|
1,969
|
|
|
|
9.8
|
%
|
|
|
716
|
|
|
|
548
|
|
|
|
30.7
|
%
|
Capex
|
|
|
781
|
|
|
|
526
|
|
|
|
48.5
|
%
|
|
|
292
|
|
|
|
210
|
|
|
|
39.0
|
%
|
Domestic
Infrastructure and Networks Division
Results
(euro million)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First nine
|
|
|
First nine
|
|
|
|
|
|
|
Third
|
|
|
Third
|
|
|
|
|
|
|
months
|
|
|
months
|
|
|
|
|
|
|
quarter
|
|
|
quarter
|
|
|
|
|
|
|
2007
|
|
|
2006
|
|
|
Change
|
|
|
2007
|
|
|
2006
|
|
|
Change
|
|
Revenues
|
|
|
4,137
|
|
|
|
4,080
|
|
|
|
1.4
|
%
|
|
|
1,393
|
|
|
|
1,313
|
|
|
|
6.1
|
%
|
Ebitda
|
|
|
2,758
|
|
|
|
2,524
|
|
|
|
9.3
|
%
|
|
|
976
|
|
|
|
788
|
|
|
|
23.9
|
%
|
Ebit
|
|
|
2,124
|
|
|
|
1,922
|
|
|
|
10.5
|
%
|
|
|
762
|
|
|
|
588
|
|
|
|
29.6
|
%
|
Capex
|
|
|
1,001
|
|
|
|
979
|
|
|
|
2.2
|
%
|
|
|
336
|
|
|
|
331
|
|
|
|
1.5
|
%
|
International
Division
Results
(euro million)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First nine
|
|
|
First nine
|
|
|
|
|
|
|
Third
|
|
|
Third
|
|
|
|
|
|
|
months
|
|
|
months
|
|
|
|
|
|
|
quarter
|
|
|
quarter
|
|
|
|
|
|
|
2007
|
|
|
2006
|
|
|
Change
|
|
|
2007
|
|
|
2006
|
|
|
Change
|
|
Revenues
|
|
|
3,076
|
|
|
|
2,125
|
|
|
|
44.8
|
%
|
|
|
1,020
|
|
|
|
861
|
|
|
|
18.5
|
%
|
Ebitda
|
|
|
873
|
|
|
|
617
|
|
|
|
41.5
|
%
|
|
|
246
|
|
|
|
244
|
|
|
|
0.8
|
%
|
Ebit
|
|
|
491
|
|
|
|
415
|
|
|
|
18.3
|
%
|
|
|
120
|
|
|
|
164
|
|
|
|
-26.8
|
%
|
Capex
|
|
|
671
|
|
|
|
228
|
|
|
|
|
|
|
|
358
|
|
|
|
98
|
|
|
|
|
|
Services
and Other Activities
Results
(euro million)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First nine
|
|
|
First nine
|
|
|
|
|
|
|
Third
|
|
|
Third
|
|
|
|
|
|
|
months
|
|
|
months
|
|
|
|
|
|
|
quarter
|
|
|
quarter
|
|
|
|
|
|
|
2007
|
|
|
2006
|
|
|
Change
|
|
|
2007
|
|
|
2006
|
|
|
Change
|
|
Revenues
|
|
|
820
|
|
|
|
782
|
|
|
|
4.9
|
%
|
|
|
274
|
|
|
|
272
|
|
|
|
0.7
|
%
|
Ebitda
|
|
|
135
|
|
|
|
141
|
|
|
|
-4.3
|
%
|
|
|
38
|
|
|
|
44
|
|
|
|
-13.6
|
%
|
Ebit
|
|
|
75
|
|
|
|
78
|
|
|
|
-3.8
|
%
|
|
|
19
|
|
|
|
23
|
|
|
|
-17.4
|
%
|
Capex
|
|
|
36
|
|
|
|
37
|
|
|
|
-2.7
|
%
|
|
|
11
|
|
|
|
10
|
|
|
|
10.0
|
%
|
Condensed Consolidated Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd Quarter
|
|
|
|
|
|
|
|
|
|
Millions of euro
|
|
First nine months
|
|
|
2007
|
|
2006
|
|
Change
|
|
|
|
2007
|
|
2006
|
|
Change
|
|
|
9,903
|
|
|
9,556
|
|
|
347
|
|
|
|
3.6
|
%
|
|
Total revenues
|
|
|
28,760
|
|
|
|
28,621
|
|
|
|
139
|
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,684
|
|
|
7,473
|
|
|
211
|
|
|
|
2.8
|
%
|
|
Total costs
|
|
|
22,049
|
|
|
|
21,813
|
|
|
|
236
|
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30
|
|
|
(180)
|
|
|
210
|
|
|
|
|
|
|
Net income/(charges) from commodity risk
management
|
|
|
|
|
|
|
(544
|
)
|
|
|
544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,249
|
|
|
1,903
|
|
|
346
|
|
|
|
18.2
|
%
|
|
GROSS OPERATING MARGIN
|
|
|
6,711
|
|
|
|
6,264
|
|
|
|
447
|
|
|
|
7.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity exchange transaction
|
|
|
|
|
|
|
263
|
|
|
|
(263
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
632
|
|
|
583
|
|
|
49
|
|
|
|
8.4
|
%
|
|
Depreciation, amortization and impairment losses
|
|
|
1,960
|
|
|
|
1,642
|
|
|
|
318
|
|
|
|
19.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,617
|
|
|
1,320
|
|
|
297
|
|
|
|
22.5
|
%
|
|
OPERATING INCOME
|
|
|
4,751
|
|
|
|
4,885
|
|
|
|
(134
|
)
|
|
|
-2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
293
|
|
|
44
|
|
|
249
|
|
|
|
|
|
|
Financial income
|
|
|
1,132
|
|
|
|
205
|
|
|
|
927
|
|
|
|
|
707
|
|
|
247
|
|
|
460
|
|
|
|
|
|
|
Financial expense
|
|
|
1,459
|
|
|
|
689
|
|
|
|
770
|
|
|
|
|
(414
|
)
|
|
(203)
|
|
|
(211
|
)
|
|
|
|
|
|
Total financial income/(expense)
|
|
|
(327
|
)
|
|
|
(484
|
)
|
|
|
157
|
|
|
|
32.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
|
|
|
|
Share of income/(expense) from equity investments
accounted for using the equity method
|
|
|
3
|
|
|
|
(7
|
)
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,205
|
|
|
1,118
|
|
|
87
|
|
|
|
7.8
|
%
|
|
INCOME BEFORE TAXES
|
|
|
4,427
|
|
|
|
4,394
|
|
|
|
33
|
|
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
500
|
|
|
425
|
|
|
75
|
|
|
|
17.6
|
%
|
|
Income taxes
|
|
|
1,674
|
|
|
|
1,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
705
|
|
|
693
|
|
|
12
|
|
|
|
1.7
|
%
|
|
NET INCOME FOR THE PERIOD (shareholders of
the
Parent Company and minority interests)
|
|
|
2,753
|
|
|
|
2,720
|
|
|
|
33
|
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9
|
|
|
31
|
|
|
(22
|
)
|
|
|
-71.0
|
%
|
|
Attributable to minority interests
|
|
|
75
|
|
|
|
80
|
|
|
|
(5
|
)
|
|
|
-6.3
|
%
|
|
696
|
|
|
662
|
|
|
34
|
|
|
|
5.1
|
%
|
|
Attributable to shareholders of the Parent Company
Earning per share (euro)
(1)
|
|
|
2,678
0,43
|
|
|
|
2,640
0,43
|
|
|
|
38
|
|
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Diluted earnings per share are equal to earnings per share.
|
Condensed Consolidated Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of euro
|
|
|
|
at Sept. 30, 2007
|
|
|
at Dec. 31, 2006
|
|
|
Change
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
- Property, plant and equipment and intangible assets
|
|
|
37,315
|
|
|
|
35,557
|
|
|
|
1,758
|
|
- Goodwill
|
|
|
2,442
|
|
|
|
2,271
|
|
|
|
171
|
|
- Investments accounted for using the equity method
|
|
|
11,991
|
|
|
|
56
|
|
|
|
11,935
|
|
- Other non-current assets
(1)
|
|
|
4,593
|
|
|
|
3,616
|
|
|
|
977
|
|
Total
|
|
|
56,341
|
|
|
|
41,500
|
|
|
|
14,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
- Trade receivables
|
|
|
8,363
|
|
|
|
7,958
|
|
|
|
405
|
|
- Inventories
|
|
|
1,341
|
|
|
|
1,209
|
|
|
|
132
|
|
- Cash and cash equivalents
|
|
|
1,769
|
|
|
|
547
|
|
|
|
1,222
|
|
- Other current assets
(2)
|
|
|
5,527
|
|
|
|
3,286
|
|
|
|
2,241
|
|
Total
|
|
|
17,000
|
|
|
|
13,000
|
|
|
|
4,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
73,341
|
|
|
|
54,500
|
|
|
|
18,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Equity attributable to the shareholders of the Parent Company
|
|
|
18,246
|
|
|
|
18,460
|
|
|
|
(214
|
)
|
- Equity attributable to the minority interests
|
|
|
730
|
|
|
|
565
|
|
|
|
165
|
|
Total
|
|
|
18,976
|
|
|
|
19,025
|
|
|
|
(49
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
- Long-term loans
|
|
|
21,688
|
|
|
|
12,194
|
|
|
|
9,494
|
|
- Other provisions and deferred tax liabilities
|
|
|
9,938
|
|
|
|
9,288
|
|
|
|
650
|
|
- Other non-current liabilities
|
|
|
2,603
|
|
|
|
1,160
|
|
|
|
1,443
|
|
Total
|
|
|
34,229
|
|
|
|
22,642
|
|
|
|
11,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
- Short-term loans and current portion of long-term loans
|
|
|
6,248
|
|
|
|
1,409
|
|
|
|
4,839
|
|
- Trade payables
|
|
|
5,839
|
|
|
|
6,188
|
|
|
|
(349
|
)
|
- Other current liabilities and tax provision for the period
|
|
|
8,049
|
|
|
|
5,236
|
|
|
|
2,813
|
|
Total
|
|
|
20,136
|
|
|
|
12,833
|
|
|
|
7,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
|
|
|
73,341
|
|
|
|
54,500
|
|
|
|
18,841
|
|
|
|
|
(1)
|
|
Of which long-term financial receivables amounting
148 million at September 30, 2007 and
1,090 million at December 31, 2006.
|
|
(2)
|
|
Of which short-term financial receivables equal to
1,203 million at September 30, 2007 (
251 million at December 31, 2006)
and securities equal to
47 million at September 30, 2007 (
25 million at December 31, 2006).
|
Condensed Consolidated Statement of Cash Flows
|
|
|
|
|
|
|
|
|
Millions of euro
|
|
First nine months
|
|
|
|
2007
|
|
|
2006
|
|
|
Cash flows from operating activities (a)
|
|
|
3,910
|
|
|
|
5,403
|
|
|
|
|
|
|
|
|
|
|
Investments in tangible and intangible assets
|
|
|
(2,518
|
)
|
|
|
(1,795
|
)
|
|
|
|
|
|
|
|
|
|
Investments in entities (or business units) less cash and cash equivalents acquired
|
|
|
(12,702
|
)
|
|
|
(923
|
)
|
Disposals of entities (or business units) less cash and cash equivalents sold
|
|
|
|
|
|
|
518
|
|
(Increase)/Decrease in other investing activities
|
|
|
188
|
|
|
|
49
|
|
Cash flows from investing/disinvesting activities (b)
|
|
|
(15,032
|
)
|
|
|
(2,151
|
)
|
|
|
|
|
|
|
|
|
|
Change in net financial debt
|
|
|
14,131
|
|
|
|
(408
|
)
|
Dividends paid
|
|
|
(1,798
|
)
|
|
|
(2,715
|
)
|
Increase in share capital and reserves due to the exercise of stock options
|
|
|
41
|
|
|
|
77
|
|
Cash flows from financing activities (c)
|
|
|
12,374
|
|
|
|
(3,046
|
)
|
|
|
|
|
|
|
|
|
|
Impact of exchange rate fluctuations on cash and cash equivalents (d)
|
|
|
(8
|
)
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease) in cash and cash equivalents (a+b+c+d)
|
|
|
1,244
|
|
|
|
204
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of the period
|
|
|
572
|
|
|
|
508
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period
|
|
|
1,816
|
(1)
|
|
|
712
|
|
|
|
|
(1)
|
|
Of which
47 million in short-term securities at September 30, 2007.
|
Notice of a change in the share capital of Enel S.p.A.
Enel S.p.A. informs the market of the new composition of its share capital (entirely subscribed and
paid up) following the partial execution during the period between October 10, 2007 and October
26, 2007 of the resolution to increase the aforesaid capital adopted by the Board of Directors at
its meeting on March 30, 2005 (for the Stock-option Plan for the year 2004).
Specifically, in the aforesaid period between October 10, 2007 and October 26, 2007 a total of
94,400 ordinary Enel S.p.A. shares were issued and subscribed, all regarding the Stock-option Plan
for the year 2004.
The Board of Directors had been specifically authorized to resolve such capital increase by the
extraordinary Shareholders Meeting of May 21, 2004.
The attestation regarding the new amount of the share capital was filed for recording with the
register of companies in Rome on November 7, 2007.
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Current share capital
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Previous share capital
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Par value
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Par value
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Euro
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N. of shares
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each
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Euro
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N. of shares
|
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|
each
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Total
|
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6,182,835,034
|
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|
6,182,835,034
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1 Euro
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6,182,740,634
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6,182,740,634
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1 Euro
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Of which:
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Ordinary shares
|
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6,182,835,034
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6,182,835,034
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1 Euro
|
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6,182,740,634
|
|
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6,182,740,634
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1 Euro
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(rank for dividend
pari passu
: January
1, 2007)
current coupon
number 10
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Notice relating to trading of Enel shares by Senior Management
|
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Company:
Enel S.p.A.
|
|
|
Declarer:
Giulio Ballio (*)
|
|
Title:
Member of the Board of Directors Enel S.p.A.
|
Transactions related to shares and equivalent financial instruments and associated convertible bonds
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Financial
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Amount paid/received
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Date
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Transaction
1
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instrument
2
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ISIN code
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Quantity
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Unit price
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in the transaction
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Source
3
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October 26, 2007
|
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A
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AZO Enel
|
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IT0003128367
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14,215
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8.215
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116,776.225
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MERC-IT
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Sub-TOTAL (A)
4
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116,776.225
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Transactions related to financial instruments associated to shares referred to in art. 152-sexies, paragraph 1, letters b1) and b3) of the
Consob Regulation on issuers discipline adopted with Resolution n. 11971 of May 14, 1999 and subsequent amendments
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Underlying
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Financial
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Type of
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ISIN
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financial
|
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Actual
|
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Potential
|
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Fea-
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Date
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Transaction
5
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|
instrument
6
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right
7
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code
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instrument
8
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investment/disinvestment
|
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investment/disinvestment
|
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tures
9
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Unit
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Unit
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Qty
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price
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Amount
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Qty
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price
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Amount
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Sub-TOTAL (B)
10
|
|
0
|
|
TOTAL (A) + (B)
|
|
116,776.225
|
|
|
|
|
(*)
|
|
the transaction was carried out by Mr. Ballios wife
|
|
1
|
|
Indicate the kind of transaction:
|
A = Purchase;
V = Sale;
S = Subscription;
X = Exchange.
2
Indicate the financial instrument involved in the transaction:
AZO = ordinary shares;
AZP = preference shares;
AZR = saving shares;
OBCV = convertible bonds or other debt financial instruments convertible into shares or exchangeable for shares;
EQV = other financial instruments, equivalent or representative of shares.
Also indicate the company that issued the financial instrument involved in the
transaction.
3
Indicate the origin of the transaction:
MERC-IT = transaction over Italian regulated market;
MERC-ES = transaction over foreign regulated markets;
FMERC = off-market transaction and blocks;
CONV = conversion of convertible bonds or exchange of debt financial
instruments for shares;
MERC-SO = transaction over regulated market concurrent to exercise of stock
option stock grant;
ESE-DE = exercise of derivatives or settlement of other derivatives (future,
swap);
ESE-DI = exercise of rights (warrant/covered warrant/securitised
derivatives/rights).
4
Indicate the total amount of the transactions listed
in the form.
5
Indicate the type of transaction:
A = Purchase;
V = Sale;
S = Subscription;
O = other, in which case specify.
6
Indicate the type of financial instrument involved in
the transaction:
W = warrant;
OBW = bond
cum
warrant;
SD = securitised derivative;
OPZ = option;
FUT = future contract;
FW = forward contract;
OS = structured bond;
SW = swap;
DIR = rights.
7
Indicate the category of derivative financial
instrument involved in the transaction (only for options):
CE = call European style;
PE = put European style;
CA = call American style;
PA = put American style;
O = other, in which case specify.
8
Indicate the underlying financial instrument (share).
9
Indicate the main conditions characterizing the
financial instrument involved in the transaction (including at least: strike
price, exercise ratio and expiry date).
10
Indicate the total amount of the transactions listed
in the form, calculated taking in consideration the potential
investment/disinvestment.
9M2007 Results
and strategic update on Russia
November 8, 2007
|
Agenda
2007 9M results
Strategic update on Russia
Q&A
Annexes
|
Financial highlights: Consolidated
9M06
9M07
%
mn
(1)
As of December 31, 2006
9M2007 Results
|
EBITDA evolution (&128;mn)
6,264
+25
+208
+234
+256
-276
6,711
9M07
9M06
Market
G&EM
I&R
International
S&H
Including intercompany adjustments
1
+447
9M2007 Results
|
+25
166
+16
-113
+122
EBITDA evolution: domestic market division (&128;mn)
9M07
9M06
Regulated
market
Free
market
191
Other &
non recurring
9M2007 Results
|
EBITDA evolution: domestic G&EM division (&128;mn)
+208
9M07
9M06
Generation
margin
Fair value
Bilateral
contracts
with SB
Non
recurring
2,653
+194
+106
-92
2,861
9M2007 Results
|
Fuel cost evolution
307.1
Oil (&128;/ton)
9M07
9M06
284.6
-7.3%
27.36
Gas (c&128;/mc)
9M07
9M06
25.47
-6.9%
57.9
Coal (&128;/ton)
65.2
+12.6%
9M07
9M06
52.4
9M07
9M06
46.5
-
11.3%
Average fuel cost
(&128;/MWh)
9M2007 Results
|
EBITDA evolution: domestic I&N division (&128;mn)
+234
2,524
+292
+27
2,758
9M07
9M06
Electricity
-85
Gas
9M2007 Results
Non
recurring
|
Iberia South-Eastern Europe Centrel Russia Americas France and Belgium
total 603 599 599 859.4 866.8 872.8
Iberia 202 14 188
South-Eastern Europe 143 4 139
Centrel 184 260 444
Russia 5 7 12
Americas 83 25 108
France and Belgium 0 19 -19
EBITDA evolution: international division (&128;mn)
+256
9M07
9M06
Iberia
South-Eastern Europe
Centrel
Russia
America
France & Belgium
-14
-19
-4
+260
+7
+25
12
-18
617
873
9M2007 Results
5
|
ebitda divisione gem
total 94 71 28
210 23 43
304 28
EBITDA evolution: services & holding1 (&128;mn)
Including intercompany adjustments
-276
304
-210
-23
28
-43
9M07
9M06
Import
Non
recurring
Other
9M2007 Results
|
Other
Geothermal
Wind
Hydro
Focus on renewables
167
+14
+20
9M07
9M06
Domestic
International
201
+34
Ebitda
Evolution
9M2007 Results
1,234
9M07
9M06
+29.8%
Capacity (MW)
650
537
47
7
45
622
928
1,602
2,749
9M07
9M06
+36.7%
Production (GWh)
1,532
963
254
21
230
919
2,588
3,758
|
Net debt evolution (&128;mn)
-13,079
Cash flow
from
operations
Capex
Extra-ordinary
activities
Net
financial
charges
-11,690
+5,358
-2,518
-24,769
-12,665 1
-789
30/9/2007
31/12/2006
-668
Dividends
-1,798
Taxes
Including net debt of acquisitions
9M2007 Results
|
2007 9M result
Strategic update on Russia
Q&A
Annexes
Agenda
|
Enel has built Russia's first vertically integrated position
in the energy sector
Supply
Power generation
Upstream gas
40% of a JV with ENI
At full production 40%-50% of
OGK-5 demand
37.15% of OGK5
Public offer filed
8,700 MW capacity, with
balanced mix (50% gas
and 50% coal)
40 TWh expected to be
generated in 2007, with
100% exposure to West
Russia and Urals
49.5% of RusEnergoSbyt
35TWh expected to be sold in 2007
Strong regional reach with 25 offices and
7 branches
o
Early mover advantage and reduced risks
in a huge, liberalizing market
|
Three year contract with RAO UES:
On time completion of 450 MW unit 2 and Russia's longest heat
pipeline
EBITDA growth from 5 &128;Mn (2004) to 30 &128;Mn (2007F)
Thermal efficiency increase
O&M costs alignment to international benchmarks (10% reduction
and 12 &128;Mn capex and O&M savings)
30% HR reduction
First mover in independent electricity supplies in Russia
Direct experience in the supply sector through Rusenergosbyt
A proven track record
of bringing innovation and creating value
Generation
St. Petersburg
450 MW CCGT
Supply
RusEnergoSbyt
Enel's experience and track record in Russia
Power generation
|
High profitability
Generation hedging
Security of supply
Competitive Supply
Participating in a worldwide
major project
Partnership with E&P leading
companies
Value of gas reserves in a
tight domestic market
Strategic rationale
Entry in a key strategic sector
Developing a robust presence
in the entire value chain
Upstream gas
|
Acquisition (2007, April 4th) of
undeveloped upstream gas assets
by a JV ENI - Enel (60%-40%)
Gazprom Call Option Agreement:
Gazprom option to acquire a 51%
interest within 2 years from
acquisition
Gazprom to
transport the natural gas to final
users in Russia and/or
off-take the entire production
Enel's acquisition cash
consideration (after Gazprom call
option exercise): USD 417 million
Acquisition overview
ENI Russia BV1
100%
(49% Post Gazprom entry)
Purchased Assets :
Artikgaz (100%)
Urengoil (100%)
Neftegaztechnologia
(100%)
OOO
EniNefteGaz 2
51% call option
60%
Eni International
B.V.
Enel Investment Holding
B.V.
40%
1 Renamed Arctic Russia BV
2 To be renamed
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
Asset overview
Overall hydrocarbons resources:
5 billion BOE
Upstream gas
|
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
Strategic rationale
Power generation
|
High new-build costs of over 1,000 $/kW increase
the value of existing and infra-marginal assets
Source: RAO UES
Over 1,000 TWh of demand growing at 2.5 - 4.2% per year
40 GW new capacity required by 2010
Russia, the fourth largest power market in the world
Power generation
^^^^^^^^^^^ ^ ^^^^^^^^, ^^^ ^^^^^^^^ ^ ^^^^^^ ^^^^^^^, ^^^
2004 39.9 41.9
2005 40.5 42
2006 41.5 41.4
2007 42.3 40.7
2008 43.1 40.3
2009 44.8 40.4
^^^^^^^^^^^ ^ ^^^^^^^^, ^^^ ^^^^^^^^ ^ ^^^^^^ ^^^^^^^, ^^^
2004 47.8 52.1
2005 48.2 53.2
2006 49.6 53.1
2007 50.6 53.1
2008 53.4 52.3
2009 53.9 52.2
Urals IES
South IES
Center IES
Capacity demand, GW
Capacity supply including decommissioning, GW
^^^^^^^^^^^ ^ ^^^^^^^^, ^^^ ^^^^^^^^ ^ ^^^^^^ ^^^^^^^, ^^^
2004 11.4 12.4
2005 11.5 11.9
2006 11.6 12
2007 11.7 12.2
2008 11.84 12.3
2009 12 12.6
|
Russia: non households electricity market scenario
1/1/2007 7/1/2007 1/1/2008 7/1/2008 1/1/2009 7/1/2009 1/1/2010 7/1/2010 1/1/2011
Est 90 85 80 70 65 45 35 15 0
5-10%
10-15%
15-20%
25-30%
30-35%
50-55%
60-65%
80-85%
100%
Deregulated market
(marginal price)
Regulated market
(tariff)
Source: RAO UES
Liberalization process initiated by government
on track and expected to be achieved by 2011
Power generation
|
32
69
GW
140
8
76% of demand (~750TWh)
Gas-dominated
Highest growth rates (4-6%)
European Russia
& Urals
Siberia
Far East
21% of demand (~ 205 TWh)
Hydro and coal dominated
Growth 2-3%
Isolated regions
3% of demand (~30 TWh)
No liberalization expected
European Russia and Urals are
the most attractive regions
Marginal nodal pricing is used
Indicative Merit order curve
Indicative Merit order curve
Hydro
Nuke
Coal
Gas
Fuel Oil
Price/MWh
Price/MWh
19
27
GW
35
11
Power generation
|
Fuel price index
gas
coal
Increasing dark spread
Coal assets in gas-fired regions
will benefit most from deregulation
Russian government guidelines: gas prices to reach European net back by 2011
Coal prices to increase with inflation
Expected upsides from deregulation
Power generation
|
OGK-5 owns some of the most competitive assets in Russia
Location Capacity
(MW) Generation
2006
(TWh) Capacity factor
( %) Fuel mix 1 Exposure to
European Russia &
Urals Transaction multiple 2
OGK-1 9,531 47.2 57% 100% -
OGK-2 8,695 48.1 63% 100% 500
OGK-3 8,497 30.6 41% 70% 610
OGK-4 8,630 51.0 68% 83% 750
OGK-5 8,672 40.4 53% 100% 668
OGK-6 9,052 32.9 41% 85% -
Gas Coal
Est 74 26
Gas Coal
Est 68 42
Gas Coal
Est 51 49
Gas Coal
Est 52 48
Gas Coal
Est 87 13
Gas Coal
Est 83 17
Source: Companies data; RAO UESR; Business news
Largest coal and European exposure
Power generation
Referred to production
EV/Inst Cap (USD/MW)
|
OGK-5 allows a clear path to control: Key events
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
1° Trim. 2° Trim. 3° Trim. 4° Trim.
Est 37.15 23.67 36.51 26.34
Others
36.51%
37.15%
Russian Federation
26.34%
1° Trim. 2° Trim. 3° Trim. 4° Trim.
Est 37.15 23.67 75 25
Others
25%
RAO UES
75%
1° Trim. 2° Trim. 4° Trim.
Est 73.66 23.67 26.34
Up to 73.66%
Russian Federation
26.34%
OGK-5 ownership structure
Before 6.6.2007
At present
Post Public Offer
Stake Purchase price Enel's OGK-5 stake
6.6.2007 RAO UES sale of an OGK-5 stake 25.03% 1.12 &128;bn 25.03%
6.22.2007 Enel purchase of OGK-5 shares 4.96% 0.21 &128;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 &128; bn 37.15%
10.29.2007 Mandatory Public Offer Filing to FSFR Up to 74%*
* assuming Russian federation will not adhere to the public tender offer
Exchange rates referred to transaction date
Power generation
|
Installed capacity 2,400 MW
Main fuel gas
Share in OGK-5 electricity sales 21%
Load factor 40%
Sales volume 2006 8.1 TWh
Konakovskaya GRES
Installed capacity 1,182 MW
Main fuel gas
Share in OGK-5 electricity sales 16%
Load factor 64%
Sales volume 2006 6.1 TWh
Sredneuralskaya GRES
Installed capacity 1,290 MW
Main fuel gas
Share in OGK-5 electricity sales 16%
Load factor 57%
Sales volume 2006 6 TWh
Nevinnomysskaya GRES
Installed capacity 3,800 MW
Main fuel coal
Share in OGK-5 electricity sales 47%
Load factor 57%
Sales volume 2006 18 TWh
The largest coal-fired plant in Russia
Reftinskaya GRES
OGK-5 asset overview
4 power plants, 8700 MW, 40 TWh production
Tver Region
Stavropol Region
Sverdlovsk Region
Sverdlovsk Region
Power generation
|
Moscow ^
OGK-5 investment plan
Nevinnomysskaya GRES
CCGT
Fuel Gas
Installed capacity 400 MW
Commissioning 2010
Fuel supplier Gazprom
Capex: 0.30 &128;bn
2.37 &128;bn Investment Plan (2007-2012)
670 &128;mn New capacity
495 &128;mn Safety and Environmental
Capex
1.2 &128;bn Stay in business/life
extension
Up to 9500 MW total installed capacity by 2010
Sredneuralskaya GRES
CCGT
Capex: 0.37 &128;bn
Fuel Gas
Installed capacity 410 MW
Commissioning 2010
Fuel supplier Itera
Increasing capacity and efficiency
Reducing environmental impact
Existing power plants
Approved: EPC contract under
finalization
Power generation
|
OGK-5 fuel supplies
Novatek Itera Gazprom
4 34 62
OGK-5 gas suppliers (2006)
4%
62%
34%
GAS
Total gas consumption: ~6.5 bcm (2006)
Five year take-or-pay contract with Gazprom (2008-
2012)
Diversified portfolio of gas suppliers
At full gas production up to 50% of OGK-5 demand will
be hedged by own equity gas
Enel Others
0.5 0.5
OGK-5 gas suppliers (at regime)
50%
Others
50%
Half of OGK-5 gas demand
could be supplied from Enel reserves
Power generation
|
RusenErgoSbyt
A first mover in independent electricity trading
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
Supply
|
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
|
Agenda
2007 9M result
Strategic update on Russia
Q&A
Annexes
|
Enel's electricity sales
127.3
117.0
+8.8%
Italy
International
9M07
9M06
Volumes sold (TWh)
Annexes - 9M2007 Results
|
Italian electricity market overview (TWh)
Pumped storage
consumption
Net production
Import
252.6
252.2
Enel Net
production
-6.5
-5.5
+0.2%
9M07
9M06
Annexes - 9M2007 Results
|
Electricity - Total market sales1
+0.2%
+87.5%
-15.0%
+1.6%
-2.3%
Enel
Other
eligible3
107.0
106.5
Excluding losses on the grid. Data relating to other operators are Enel's estimates
Including Dual Energy
Sales to the eligible market including self-consumption
Free customers2 (thousand)
827.0
120.5
9M07
9M06
free
eligible3
129.0
129.9
236.0
236.4
Enel's domestic electricity sales (TWh)
9M06
9M07
free
Annexes - 9M2007 Results
|
Enel's net production (TWh)
-2.7%
98.6
95.9
Italy
International
9M07
9M06
Annexes - 9M2007 Results
|
Group production mix (%)
-2.7%
Other renewables
Coal
Nuclear
Gas CCGT
Hydro
Oil & Gas
ST/OCGT
98.6 TWh
95.9 TWh
9M07
9M06
Annexes - 9M2007 Results
|
+0.6%
199.9
201.0
Italy 1
International
9M07
9M06
Enel's electricity distribution (TWh)
1. Net of energy dispatched in the previous years
Annexes - 9M2007 Results
|
Italian gas market overview (bcm)
Thermoelectric
Other
Industrials
Residential &
Commercial
61.6
58.5
-5.0%
9M07
9M06
1.7
1.7
Source: Ministry of the Economic Development and Enel estimates
Annexes - 9M2007 Results
|
Enel's gas sales
Volumes sold (bcm)
Customers (thousand)
-9.4%
+6.3%
9M07
9M06
9M07
9M06
Annexes - 9M2007 Results
|
Enel's gas distribution
-15.4%
+0.2%
Volumes distributed (bcm)
End users (thousand)
9M07
9M06
9M07
9M06
Annexes - 9M2007 Results
|
Net Production : Geographical breakdown
9M06
9M07
%
(GWh)
Annexes - 9M2007 Results
|
(GWh)
Net production : source breakdown
Annexes - 9M2007 Results
|
Domestic net production mix (%)
-12.7%
Other renewables
Coal
Gas CCGT
Hydro
Oil & Gas
ST/OCGT
80.1 TWh
69.9 TWh
9M07
9M06
Annexes - 9M2007 Results
|
International net production mix (%)
+40.5%
Other renewables
Coal
Nuclear
Hydro
Oil & Gas
ST/OCGT
18.5 TWh
26.0 TWh
9M07
9M06
Annexes - 9M2007 Results
|
Domestic G&EM division: CO2 emissions vs. allowances
CO2 Emissions (Mt)
9M06
9M07
38.8
33.6
Deficit
Allowances
Annexes - 9M2007 Results
|
International sales (TWh)
+108%
9M07
9M06
10.0
20.8
Annexes - 9M2007 Results
|
Domestic electricity distribution (TWh)
190.6
191.6
9M07
9M06
+0.5%
Net of energy dispatched in the previous years
Annexes - 9M2007 Results
|
Income statement
&128; mn
9M06
9M07
%
Annexes - 9M2007 Results
|
From EBIT to EPS
&128; mn
9M06
9M07
%
Annexes - 9M2007 Results
|
Balance sheet
&128; mn
FY06
9M07
%
Annexes - 9M2007 Results
|
Debt structure
1 Including current maturities of long-term debt
2 Including factoring and other current receivables
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
&128; mn
%
FY06
9M07
Annexes - 9M2007 Results
|
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Average residual maturity 0.211111111111111 0.167361111111111 0.132638888888889 0.172916666666667 0.169444444444444 0.209722222222222 0.252777777777778 0.296527777777778 0.296527777777778 0.303
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Average cost of debt 0.062 0.059 0.055 0.052 0.047 0.044 0.044 0.043 0.046 0.049
Average cost of debt
6.2%
4.7%
4.3%
5.9%
5.5%
5.2%
4.6%
4.9%
4.4%
4.4%
Average residual maturity
5:4
4:4
7:7
4:1
3:11
4:9
7:7
7:8
5:2
6:4
Net financial debt (&128;bn)
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Net financial debt 12.677 12.094 13.383 21.93 24.467 24.174 24.514 12.312 11.69 24.8
12.7
24.5
12.3
12.1
13.4
21.9
11.7
24.8
24.2
24.5
Fixed + Hedged/Total debt
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Fixed + Hedged/Total debt 0.53 0.61 0.54 0.42 0.44 0.6 0.53 0.81 0.8 0.68
53%
44%
81%
61%
54%
42%
80%
68%
60%
53%
1
As of September 30, 2007
1
1
1
Debt evolution
Annexes - 9M2007 Results
|
Financial debt evolution
12.31.2005
&128;m
Bank loans - maturities > 12 months
Bonds - maturities > 12 months
Other loans - maturities > months
Long-term financial credits - maturities > 12 months
Total net long-term financial debt - Maturities > 12 months
Bank loans - maturities < 12 months
Bonds - maturities < 12 months
Other loans - maturities < 12 months
Long-term financial credits - maturities < 12 months
Total net long-term financial debt - Maturities < 12 months
Other short-term bank debt
Commercial paper
Other short-term financial debt
Short-term debt
Factoring receivables
Other short-term financial receivables
Cash at banks and marketable securities
Total net short-term debt (including current maturities)
Net financial debt
Net equity
Debt/Equity ratio
Average cost of debt
06.30.2006
12.31.2006
09.30.2007
2,782
8,043
142
-63
10,904
399
487
49
-3
932
970
275
116
1,361
-374
-3
-508
1,408
12,312
19,416
0.63
4.3%
2,975
8,293
219
-201
11,286
340
487
33
0
860
1,442
1,194
40
2,676
-212
-12
-521
2,791
14,077
18,995
0.74
4.5%
3,677
8,375
142
-1,090
11,104
233
59
31
-30
293
542
531
13
1,086
-211
-10
-572
586
11,690
19,025
0.61
4.6%
5,807
15,780
101
-148
21,540
258
63
25
-995
-649
2,417
3,374
111
5,902
-195
-13
-1,816
3,229
24,769
18,976
1.31
4.9%
Annexes - 9M2007 Results
|
EBIT by business area (&128;mn)
4,751
4,885
-134mn
-2.7%
+9.8%
+10.5%
+18.3%
9M07
9M06
-44
18
1 Including elisions
1
Annexes - 9M2007 Results
|
Domestic Market division details
&128; mn
9M06
9M07
1
As of December 31, 2006
%
Annexes - 9M2007 Results
|
&128; mn
9M06
9M07
1
As of December 31, 2006
%
Domestic Generation & Energy Management division details
Annexes - 9M2007 Results
|
Domestic Infrastructure & Network division details
As of December 31, 2006
&128; mn
9M06
9M07
%
1
Annexes - 9M2007 Results
|
International activities details
1
As of December 31, 2006
&128; mn
9M06
9M07
%
1
Annexes - 9M2007 Results
|
Services & Holding details
Excluding inter-company adjustments equal to &128;-6mn in 9m07 and &128;-12mn in 9m06 respectively
1
1
&128; mn
9M06
9M07
%
Annexes - 9M2007 Results
|
Services & Holding details - Continued
1
As of December 31, 2006
&128; mn
9M06
9M07
%
Annexes - 9M2007 Results
|
Capex by business area (&128;mn)
2,518
1, 795
+723mn
+40.3%
+9.1%
+48.5%
+2.2%
+194.3%
+2.5%
9M07
9M06
24
22
Annexes - 9M2007 Results
|
&128;mn
2006 non-recurring items analysis
Green certificates reimbursement
Reserve capacity reimbursement
Resolution 20/4
Terna
Siemens litigation
Terna bonus shares
Modena capital gain
Trento capital gain
Energy adjustment
Gas adjustment
Maritza
Total
41
51
23
85
71
15
33
319
2006
Annexes - 9M2007 Results
|
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.
|
Contact us
Luca Torchia (Head of IR)
Massimiliano Bevignani (Stock analysis and IR reporting)
Donatella Izzo (Buy-side)
Fausto Sblandi (Sell-side)
Investor Relations Team (investor.relations@enel.it)
Visit our website at:
www.enel.it (Investor Relations)
+39 06 83053437
+39 06 83057023
+39 06 83057449
+39 06 83052226
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
|
|
|
Enel Società per Azioni
|
|
|
By:
|
/s/ Avv. Claudio Sartorelli
|
|
|
|
Name:
|
Avv. Claudio Sartorelli
|
|
|
|
Title:
|
Secretary of Enel Società per Azioni
|
|
|
Dated: November 8, 2007
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