Enel SpA · MIL:ENEL
Enel SpA — Investor Presentation (December 2006)
38 slides from Enel SpA's investor presentation, Dec 5, 2006
Slide 1: Mochovce Site Visit
Mochovce Site Visit Mochovce - December 5, 2006
Slide 2: Agenda
Agenda • Overview of Slovenské Elektrárne Paolo Ruzzini • Enel’s Growth in Centrel Region Marco Arcelli • Nuclear assets Jaroslav Holubec Giancarlo Aquilanti • Closing remarks Fulvio Conti 1
Slide 3: Agenda
Agenda • Overview of Slovenské Elektrárne Paolo Ruzzini • Enel’s Growth in Centrel Region Marco Arcelli • Nuclear assets Jaroslav Holubec Giancarlo Aquilanti • Closing remarks Fulvio Conti 2
Slide 4: Macroeconomic indicators for Slovakia
Macroeconomic indicators for Slovakia Real GDP growth (year-to-year) Inflation Percent Percent 12,0 9,6 8,6 6,0 7,1 7,5 5,5 4,4 4,2 3,8 3,3 2,7 2,7 2,0 2000 01 02 03 04 05 2006 2000 01 02 03 04 05 2006 (3Q) (3Q) Exchange rate Deficit/GDP SKK/USD SKK/EUR Percent 46,2 48,4 45,3 12,3 42,6 43,3 42,7 41,
Slide 5: The Slovak Electricity Landscape
The Slovak Electricity Landscape • Net installed capacity: 9,100 MW, of which – 6,350 MW Slovenské Elektrárne (1) Generation Generation – 2,750 MW Independent power producers: • Own industrial production • Combined heat and power companies in large cities • Managed by SEPS a.s Transmission Transmiss
Slide 6: Slovenské Elektrárne's Plants
Slovenské Elektrárne’s Plants Small hydro plants Trenčín – Hydro power plant Nováky – Thermal power plant Bohunice – Nuclear power plant Vojany - Thermal power plant Hydro Nuclear 2,365 MW 2,400 MW 37% 38% Mochovce - Nuclear power plant Bratislava – Headquarters Gabčíkovo + others – Hydro power plan
Slide 7: Slovenské Elektrárne Production and Sales
Slovenské Elektrárne Production and Sales Total production (TWh) Total sales (TWh) +5,6% 22,5 21,3 +1,8% 15% Direct customers 15% 17,9 18,2 (1) Hydro 21% 18% 32% 47% Other Sales Thermal 14% 15% Discos Nuclear 65% 67% 53% 48% 9M05 9M06 9M05 9M06 6 (1) Includes 6.1 TWh from carve-out
Slide 8: Slovenské Elektrárne financial highlights
Slovenské Elektrárne financial highlights €mn 9M05 (1) 9M06 (1) Change [%] Revenues Revenues 867 949 9.4 % EBITDA EBITDA 296 329 11.0 % Net Net debt debt 1,068 890 -16.7 % Capex Capex 62 62 - 7 (1) Exchange rate SKK/EUR constant at 35.64
Slide 9: ENEL's value creation strategy for Slovenské Elektrárne
ENEL’s “value creation” strategy for Slovenské Elektrárne Area Targets Actions launched Achieve best-practice – Nuclear plants: shorter overhauls Opportunity Opportunity level in asset utilization and outages costs costs – Lower unbalances – Reduce opex in nuclear and thermal Achieve best-practice p
Slide 10: New Investments of Slovenské Elektrárne
New Investments of Slovenské Elektrárne Technology Description Gross power Start of output (MW) operation EMO 3 & 4 880 2012 Nuclear Nuclear EBO V2 uprate 130 2008/2011 EMO 1&2 uprate 46 2008 Refurbishment of Thermal Thermal 30 2012 existing coal fired plants Wind Wind Greenfield and 104 2008 -2010
Slide 11: Enel's vision for Slovenské Elektrárne
Enel’s vision for Slovenské Elektrárne • Completion of EMO 3 4 • Uprate of EMO 1 2 and EBO 3 4 €2bn investments in Slovakia • Construction of small hydro • Reconstruction of Novaky FK2 • Hub for Centrel’s sales and trading activities Grow beyond Slovakia • Hub for expansion in region • Leverage nucl
Slide 12: Agenda
Agenda • Overview of Slovenské Elektrárne Paolo Ruzzini • Enel’s Growth in Centrel Region Marco Arcelli • Nuclear assets Jaroslav Holubec Giancarlo Aquilanti • Closing remarks Fulvio Conti 11
Slide 13: The role of Centrel in the convergence of power markets
The role of Centrel in the convergence of power markets 1 Large Total internal demand (TWh) NL DE PL BE Western Europe 1251 CK FR SS Iberia 303 CH AT KK HU SI HR RO Italy 330 IT BA PT YU BG Centrel 259 ES AL MK GR Balkans 252 2 Converged 3 Interconnected Internal net flows (TWh) % of demand Total Cr
Slide 14: Key regulatory developments
Key regulatory developments • Increased coordination of cross border capacity auctions among system operators • Gradual elimination of PPAs in Poland and Hungary • Gradual elimination of coal subsidies in Poland • Full market opening in 2007 Convergence of Centrel market is increasing 13
Slide 15: Demand / supply fundamentals in Centrel
Demand / supply fundamentals in Centrel 2015 Marginal cost GW Demand 80 range 70 Centrel Demand CCGT (CAGR: 1.7%) new 60 15-20% entrant 50 40 30 Centrel 20 Supply 10 Capacity 0 Year 2005 2015 2030 0 65 GW Hydro Nuclear Lignite Coal Gas, Oil, Pumped Storage A tight market will increase the value of c
Slide 16: A strong link between commercial activities and business development
A strong link between commercial activities and business development Brownfield Greenfield Equity Spot Long Term VPP Development Development Participation CZECH REPUBLIC POLAND • 4,000 MW retired in next 15 years • Electricity sector under reorganisation • 2007: Brownfield and greenfield • 2007: Opp
Slide 17: Conclusions
Conclusions • Centrel is a large, interconnected market strategically positioned between the Western European and the Balkan markets • The value of capacity in Centrel will continue to increase in the next years • Slovenské Elektrárne is the natural hub for Enel’s expansion in the region • Strong lo
Slide 18: Agenda
Agenda • Overview of Slovenské Elektrárne Paolo Ruzzini • Enel’s Growth in Centrel Region Marco Arcelli • Nuclear assets Jaroslav Holubec Giancarlo Aquilanti • Closing remarks Fulvio Conti 17
Slide 19: Slovenské Elektrárne Nuclear Units
Slovenské Elektrárne Nuclear Units Mochovce 1&2 Bohunice 3&4 Mochovce 3&4 Bohunice 3&4 (V2) Gross Power: Power 2 X 440 MWe Production: 6 TWh / yr - Op. life: 2014/2015 (2024/2025) Mochovce 1&2 Gross Power: 2 X 440 MWe Production: 6 TWh / yr – Op. life: 2028/2030 (2038/2040) Mochovce 3&4 Rated
Slide 20: Nuclear Power Reactors and PWR's around the world
Nuclear Power Reactors (NPR’s) and PWR’s around the world Today: 442 NPR in operation BWR: Boiling Water Reactor Capacity 83 (GWe) FBR: Fast Breeder Reactor 0,8 GCR: Gas Cooled Reactor 267 NPR (60%) are PWR, 11 LWGR: Light Water Graphite Reactor of which: 11 53 are VVER 21 PHWR: Pressurized Heavy Wa
Slide 21: Basic data of Mochovce 1&2 NPP
Basic data of Mochovce 1&2 NPP General • Number of operational units: 2 • Type of reactor: VVER 440/V-213 – pressurized-water reactor • Reactor thermal power: 1,375 MWt • Reactor nominal power: 440 MWe • Own consumption: 35 MW (8 % of the nominal power) • Unit efficiency: 32 % Primary circuit • numb
Slide 22: VVER-440/213 and western PWR
VVER – 440/213 and western PWR VVER-440 / V-213 (EMO & EBO V2) western PWR • VVER design is standard (for VVER 440 there are approx 40 Units in 10 Countries) • Bohunice V2 and Mochovce NPR are second generation VVER (V213), designed with safety features (Emergency Core Cooling Systems and Containmen
Slide 23: Schematic flow-diagram of Mochovce 1&2 NPP
Schematic flow-diagram of Mochovce 1&2 NPP Designer: AtomEnergoExport (Russia) / Energoproekt Praha (Czech Republic) Main Supplier: Skoda Praha (Czech Republic) Nuclear Reactor Steam Steam Steam Generator Turbine Generator Turbine HP / MP LP cylinders Primary Pump Nuclear Fuel Condenser Cooling Towe
Slide 24: Operational performances of Slovenské Elektrárne Nuclear Power Units
Operational performances of Slovenské Electrárne Nuclear Power Units Mochovce 1 & 2 WANO (World Association of Nuclear Operators) • Manages performance indicators in 9 key areas of operations • Key indicators used as a monitoring tool, as well as to give guidance to increase performance 23
Slide 25: UCLF [%] – Unplanned capability loss factor
UCLF [%] – Unplanned capability loss factor Unit 1 Unit 2 5,39 5,21 2,26 2,13 1,91 1,78 1,37 1,1 0,51 0,45 0,21 0,13 0,08 1999 2000 2001 2002 2003 2004 2005 WANO A performance significantly better than the WANO average for PWRs 24
Slide 26: UCF [%] – Unit capability factor
UCF [%] – Unit capability factor Unit 1 Unit 2 89,5 89,6 86,3 87,8 88,6 87,1 83,0 81,6 80,9 77,1 76,0 75,0 71,0 WANO 1999 2000 2001 2002 2003 2004 2005 2005 Performance close to the WANO average and improving 25
Slide 27: Mochovce NPP Unit 1&2 scrams
Mochovce NPP Unit 1&2 scrams Unit 1 13 Unit 2 number of AO 1 6 3 2 2 1 1 1 1 0,6 0 0 0 0 0 0 WANO 1999 2000 2001 2002 2003 2004 2005 2005 24 July 2006: EMO 1 record of 1,000 days without a reactor scram 26
Slide 28: Radiation safety - collective dose
Radiation safety - collective dose [average per unit] 0,641 0,65 mSv 0,393 0,348 0,203 0,218 0,225 0,024 WANO 1999 2000 2001 2002 2003 2004 2005 2005 2004 – the best VVER NPP worldwide 27
Slide 29: Industrial injuries index
Industrial injuries index (ISAR 200 000) EMO WANO 0,75 0,33 0,467 0,35 0,26 0,212 0,326 0,308 0,28 0,284 0,2 0,13 1999 2000 2001 2002 2003 2004 2005 A value better than the WANO average 28
Slide 30: Operational events at Mochovce NPP
Operational events at Mochovce NPP No safety 25 significance INES 1 INES 2 15 14 14 13 4 2 1 1 1 1 1 0 0 0 0 0 0 2000 2001 2002 2003 2004 2005 No events INES 2 or higher 29
Slide 31: Feasibility Study for completion of Mochovce 3-4
Feasibility Study for completion of Mochovce 3-4 Units to be completed – EMO 3&4 Operational Units - EMO 1&2 • Two Units VVER 440/213 type Two Units VVER 440/213 type • Construction works suspended in 1992 In commercial operation since 2000 • Under conservation program in accordance with IAEA std’s
Slide 32: Overview of Enel's involvement in nuclear projects
Overview of Enel’s involvement in nuclear projects Mochovce 3&4 • Project and Engineering Management • Project Integrated Team with EdF EPR Flamanville 3 • Know how transfer on Design, Construction, Operation Nuclear Operation • Nuclear Oversight / Business Improvement Group • Operation Competence D
Slide 33: Agenda
Agenda • Overview of Slovenské Elektrárne Paolo Ruzzini • Enel’s Growth in Centrel Region Marco Arcelli • Nuclear assets Jaroslav Holubec Giancarlo Aquilanti • Closing remarks Fulvio Conti 32
Slide 34: International activities: An increasingly integrated electricity market
International activities An increasingly integrated electricity market Scandinavia Hydro UK/Ireland 386 TWh consumed Coal/Gas 2.5% growth rate 408 TWh consumed 0.9% growth rate 9 Central Eastern Europe Nuclear/Coal 259 TWh consumed 1% growth rate 17 Central Western Europe Nuclear/Coal 41 1,373 TWh c
Slide 35: Our criteria for international growth
International activities Our criteria for international growth Strategic criteria Slovenské Electrárne • Vertical integration • Coherent development within macro regions • Power mix diversification (nuclear, renewables, clean coal) • Expansion into upstream gas Financial criteria • IRR > project WAC
Slide 36: Strategy: three clear priorities
International activities Strategy: three clear priorities • Retain our market leadership in Italy in a liberalizing market • Improve customer value through a continued investment program and cost leadership • Continue to invest in and grow our European energy and international renewables activities,
Slide 37: Disclaimer
Disclaimer THESE SLIDES HAVE BEEN PREPARED BY THE COMPANY SOLELY FOR THE USE AT THE MOCHOVCE SITE VISIT. 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
Slide 38: Contact us
Contact us Investor Relations Team Luca Torchia +39 06 8305 3437 Massimiliano Bevignani +39 06 8305 7023 Donatella Izzo +39 06 8305 7449 Fausto Sblandi +39 06 8305 2226 Federica Todaro +39 06 8305 9502 investor.relations@enel.it Visit our website at: www.enel.it (Investor Relations) 37