Report and Financial Statements of Enel SpA at ... eneL RepoRt anD finanCiaL stateMents of eneL spa...

Click here to load reader

  • date post

    19-Jan-2020
  • Category

    Documents

  • view

    5
  • download

    0

Embed Size (px)

Transcript of Report and Financial Statements of Enel SpA at ... eneL RepoRt anD finanCiaL stateMents of eneL spa...

  • Report and Financial Statements of Enel SpA at December 31, 2007

  • Report and Financial Statements of Enel SpA at December 31, 2007

  • Contents

  • RepoRt on opeRations

    8 the enel structure

    10 Corporate boards

    13 Letter to shareholders and stakeholders

    18 summary of the resolutions of the ordinary and extraordinary shareholders’ Meetings

    21 enel and the financial markets

    27 activity of enel spa

    31 significant events in 2007

    39 Results of enel spa

    49 performance of the main subsidiaries

    67 Human resources and organization

    81 shares held by directors, members of the Board of auditors, the General Manager and managers with strategic responsibilities

    83 Research and development

    85 outlook and other information

    CoRpoRate GoveRnanCe

    162 Report on corporate governance

    DeCLaRation of tHe CHief exeCutive offiCeR anD tHe ManaGeR ResponsiBLe foR tHe pRepaRation of CoRpoRate finanCiaL RepoRts

    200 Declaration of the Chief executive officer and the manager responsible for the preparation of the financial reports of enel spa

    finanCiaL stateMents

    90 Financial statements 91 income statement 92 Balance sheet 94 statement of Cash flows 95 statement of Recognized income and expenses for the period 96 Notes to the financial statements 111 information on the income statement 118 information on the Balance sheet 145 Related parties 152 stock option plans 154 Contractual commitments and guarantees 156 Contingent liabilities and assets 158 subsequent events 159 fees of the independent auditors pursuant to article 149-duodecies of the “Consob issuers Regulation”

    RepoRts

    204 Report of the Board of auditors to the shareholders of enel spa

    210 Report of the independent auditors

  • 6

  • 7Report on operations

  • eneL RepoRt anD finanCiaL stateMents of eneL spa at DeCeMBeR 31, 2007 RepoRt on opeRations

    8

    The Enel structure

  • 9 Enel SpA

    Sales

    enel servizio elettrico

    enel energia

    enel.si

    vallenergie

    Infrastructure and Networks

    enel Distribuzione

    enel Rete Gas

    enel sole

    Deval

    Generation and

    Energy Management

    enel produzione

    enel trade

    enel trade Hungary

    enel trade Romania

    nuove energie

    Engineering and Innovation

    enel produzione

    Iberia and Latin America

    endesa

    enel Latin america

    enel panama

    enel fortuna

    inelec

    enel viesgo Generación

    enel viesgo energía

    enel unión fenosa Renovables

    electra de viesgo Distribución

    enel viesgo servicios

    Services and Other Activities

    enel servizi (1)

    sfera

    enelpower

    enel.newHydro

    enel.factor

    enel.Re

    International

    slovenské elektrárne

    enel Maritza east 3

    enel operations Bulgaria

    enel north america

    enel Distributie Banat (formerly enel electrica Banat)

    enel Distributie Dobrogea (formerly enel electrica Dobrogea)

    enel energie

    Blue Line

    enel Romania (formerly enel servicii)

    enel servicii Comune

    Rusenergosbyt

    severenergia (formerly enineftegaz)

    enel france

    enel erelis

    enelco

    international Windpower

    Wind parks of thrace

    international Wind parks of thrace (1) as from January 1, 2007 Dalmazia trieste and Cise

    were merged into enel servizi.

  • eneL RepoRt anD finanCiaL stateMents of eneL spa at DeCeMBeR 31, 2007 RepoRt on opeRations

    10 Corporate boards

    secretary

    Claudio Sartorelli

    Directors

    Giulio Ballio Augusto Fantozzi Alessandro Luciano Fernando Napolitano Francesco Taranto Gianfranco Tosi Francesco Valsecchi

    Chairman

    Franco Fontana

    auditors

    Carlo Conte Gennaro Mariconda

    alternate auditors

    Giancarlo Giordano Paolo Sbordoni

    Chief executive officer and General Manager

    Fulvio Conti

    Chairman

    Piero Gnudi

    KPMG SpA

    Board of Directors

    Board of Auditors

    Independent auditors

  • 11

    Powers

    Board of Directors The Board is vested by the bylaws with the broadest powers for the ordinary and

    extraordinary management of the Company, and specifically has the power to carry

    out all the actions it deems advisable to implement and attain the corporate purpose.

    Chairman of the Board of Directors The Chairman is vested by the bylaws with the powers to represent the Company

    legally and to sign on its behalf, presides over Shareholders’ Meetings, convenes

    and presides over the Board of Directors, and ascertains that the Board’s resolutions

    are carried out. Pursuant to a Board resolution of November 30, 2005, the Chairman

    has been vested with a number of additional non-executive powers.

    Chief Executive Officer The Chief Executive Officer is also vested by the bylaws with the powers to represent

    the Company legally and to sign on its behalf, and in addition is vested by a Board

    resolution of November 30, 2005 with all powers for managing the Company, with

    the exception of those that are otherwise assigned by law or the bylaws or that the

    aforesaid resolution reserves for the Board of Directors.

  • eneL RepoRt anD finanCiaL stateMents of eneL spa at DeCeMBeR 31, 2007 RepoRt on opeRations

    12

  • 13

    Dear shareholders and stakeholders,

    In 2007 Enel experienced a year of extraordinary growth and expansion on the

    international energy scene. Last year not only did we achieve and exceed all the

    operational and financial goals we set ourselves, with the acquisition of Endesa

    and the completion of the public tender offer for OGK-5 in Russia, Enel also became

    the second largest electricity group in Europe with installed capacity at the end

    of 2007 of 75.5 GW and 51.6 million customers in 21 countries on 4 continents.

    In an environment of increasing integration of markets, the acquisitions carried out

    give Enel the size to play a leading role, reduce regulatory and business risk,

    and expand growth potential and efficiency. The growth abroad and the constant

    search for excellence and efficiency in all our Divisions made a decisive contribution

    to improving Group results: in 2007 the gross operating margin rose by 25%

    compared with the previous year, while Group net income, equal to €3,977

    million, rose by 31%. This performance enables us to maintain our dividend policy.

    Enel is successfully continuing its drive for efficiency and growth, further

    strengthening its role as a leading integrated operator in the European

    electricity and gas market.

    Our Company has the human, technical and financial resources it needs to

    achieve the excellence and leadership goals we have set ourselves.

    From an organizational point of view, the three Domestic Divisions and the

    International Division have been joined, as from December, by the “Iberia and

    Latin America” Division and the “Engineering and Innovation” Division.

    This new organization will make it possible – by using the specific skills in

    our various business areas – to accelerate the integration and organic growth of

    the newly acquired companies and to make available to the entire Group, in Italy

    and abroad, our technical expertise in engineering, research and innovation.

    The consolidation and integration of Enel’s international acquisitions, the

    improvement in the generation mix in Italy, the integration in the upstream

    and mid-stream gas sector, the development of new technologies and nuclear

    power generation are the strategic priorities of the Group for the coming years.

    In parallel, we will pursue initiatives to optimize our portfolio in order to

    strengthen the Group’s financial position, which in the last year has been

    affected by our international expansion and the development of operations.

    Letter to shareholders and stakeholders

  • eneL RepoRt anD finanCiaL stateMents of eneL spa at DeCeMBeR 31, 2007 RepoRt on opeRations

    14 Sales Division On July 1, 2007 the process of liberalizing the Italian energy market was completed:

    now, in addition to businesses, all Italian households are free to choose their

    supplier of electricity and gas.

    From the very first day, the Sales Division was ready to help customers benefit

    from the opening of the market, with advanced solutions such as the “dual energy”

    option, with the combined supply of electricity and gas.

    In just six months, between July and December 2007, some 600,000 residential

    customers have signed up for Enel Energia’s offers.

    The more 1,200,000 customers in the small and medium-sized enterprise segment,

    an increase of 108% on the previous year, and our strengthened position (up

    16% on 2006) with major industrial customers confirm Enel’s leadership among

    business customers.

    Enel also maintains its position as the number t