Enel SpA (Enel) has reported revenues of EUR61.2 billion for the year-end 2008, up 40%, compared with the revenues of EUR43.7 billion in the previous year-end. It has also reported group net income of EUR5.3 billion for the year-end 2008, up 35.2%, compared with the group net income of EUR3.9 billion in the previous year-end.

Rights issue of up to EUR8 billion by 2009

Ministry of Economy and Finance has expressed interest in subscribing

EBITDA to reach EUR16 billion in 2010 and 18 billion in 2013;

Net ordinary income to reach EUR4 billion in 2010 and EUR5 billion in 2013;

Net consolidated debt to reach EUR45 billion in 2010 and EUR41 billion in 2013, with a net debt/EBITDA ratio equal to 3 and 2.5 respectively thus keeping an A rating;

EBITDA and cash flow to grow through efficiency programmes

Disposal programme of EUR10 billion aimed at reducing debt by 2010;

Investment plan of EUR32.6 billion by 2013, reduced by about EUR12 billion from the previous plan, updated with Endesa fully consolidated;

New dividend policy from 2009: payout of 60% of consolidated net ordinary income

The Group aims at consolidating its economic and financial performance within a difficult economic environment.

Enel’s targets are:

For 2010:

EBITDA to EUR16 billion

Consolidated net income from ordinary activities to EUR4 billion

Consolidated net debt to EUR45 billion

For 2013:

EBITDA to EUR18 billion

Consolidated net income from ordinary activities to EUR5 billion

Consolidated net debt to EUR41 billion

Operational Highlights

Electricity and gas sales

Electricity sold by Enel rose 74.1 TWh (+37.7%), with total sales of 270.4 TWh to 49.3 million customers. The increase is largely attributable to increased sales abroad (+79.3 TWh, of which 78.2 TWh from the change in consolidation of Endesa).

Sales of gas to end users totalled 8.2 billion cubic meters in 2008, with volumes increasing both in Italy (+16.3%) and abroad due to the consolidation of Endesa.

Power generation

Net electricity generated by Enel in 2008 increased 99.7 TWh (+65.0%) as a result of greater output abroad (+97.6 TWh) and an increase in generation in Italy (+2.1 TWh). In particular, the increased output abroad is attributable to the change in consolidation of Endesa (76.1 TWh) and to the acquisition of OGK-5 (22.5 TWh) net of the effects related to the deconsolidation of the Viesgo group.

Distribution of electricity

Electricity transported over the Enel distribution network totalled 393.5 TWh, an increase of 91.2 TWh (+30.2%), mainly due to an increase in power transported abroad (+92.3 TWh, of which 91.4 TWh attributable to the change in consolidation of Endesa).

Consolidated Financial Highlights

Revenues in 2008 were EUR61,184 million , an increase of EUR17,496 million (+40.0%) versus 2007. The rise is essentially attributable to increased revenues earned abroad, following the acquisitions finalized during the two periods being compared, and to increased revenues from electricity generation and sales in the Italian market.

EBITDA in 2008 was EUR14,318 million , an increase of EUR4,478 million (+45.5%) on the previous year, largely thanks to a general increase posted by all the operational Divisions, most notably the Iberia and Latin America Division, which reflects the change in consolidation of Endesa.

EBIT in 2008 was EUR9,541 million , up 40.7% versus EUR6,781 million in 2007, mainly due to the results of the foreign acquisitions as well as growth posted by all the other operational divisions.

Group net income in 2008 totalled EUR5,293 million , compared with EUR3,916 million the previous year, an increase of 35.2%. This result reflects strong operating performance, partly offset by an increase in net financial charges, and the positive impact of a decline in income taxes. The latter reflects both the positive impact (EUR1,858 million) of the adjustment to deferred taxation following the realignment of the differences between the statutory and tax values of certain items of property, plant and equipment, which was partially offset by payment of the specific tax envisaged in the 2008 Budget Law, and the negative impact (EUR290 million) of the increase in the corporate income tax rate (IRES) established by Decree Law 112/08 for companies operating in the production and sale of electricity and gas.

Net capital employed, including net assets held for sale amounting to EUR3,460 million (EUR9,380 million at December 31, 2007), was EUR76,262 million at December 31, 2008 (EUR82,424 million at December 31, 2007), and was financed by shareholders’ equity attributable to the Group and minority interests of EUR26,295 million (EUR26,633 million at December 31, 2007) and net financial debt of EUR49,967 million (EUR55,791 million at December 31, 2007). At December 31, 2008, the debt/equity ratio was 1.90 (2.09 at December 31, 2007).

Net financial debt, excluding debt attributable to assets held for sale amounting to EUR795 million at year-end (EUR1,725 million a year earlier), came to EUR49,967 million at December 31, 2008, down EUREUR5,824 million on December 31, 2007. The decrease is largely attributable to the proceeds from the completion of the sale of the assets of Endesa Europa and Viesgo to E.On, partially offset by resources used to complete acquisitions carried out in 2008.

Capital expenditure totalled EUR6,502 million in 2008 (of which EUR6,186 million related to property, plant and equipment), an increase of EUR1,573 million on 2007. The increase is mainly attributable to greater investments by the Iberia and Latin America and Renewable Energy Divisions (EUR1,127 million and EUR288 million , respectively).

At December 31, 2008, Enel Group employees totalled 75,981 (73,500 employees at end of 2007), an increase of 2,481 attributable to the change in the scope of consolidation due to acquisitions abroad (+3,891 employees), which more than offset a net decrease of 1,410 resulting from hirings and terminations. At December 31, 2008, the number of employees working in Group companies based abroad was 35,654.

Fulvio Conti, Enel chief executive officer, remarked: “These positive results confirm Enel’s solidity and ability to deliver growth even in an unfavorable economic and financial context. The international expansion programme initiated in 2005 positions the Group as a worldwide energy leader that is diversified geographically and technologically and better enables us to tackle periods of slow economic growth. Integration of activities abroad and related significant synergies will enhance the Group’s profitability that along with a rigorous financial discipline will enable Enel to maintain the current A-/A2 rating to benefit our shareholders and stakeholders. The rights issue supporting our international growth policy that is now complete, the new dividend policy, the disposal of non-strategic assets together with a careful management of investments and the continuous improvements in efficiency will generate solid cash flow that will enable our company to be ready at the first signs of a recovery of the markets and economy.”