Effective liberalization: an investor's perspective Matteo Codazzi Country Manager and CEO ENEL Romania “Sectorul eniergei electrice” Bucharest – 2007, 5 June

Use: public May, Effective liberalization: an investor's perspective One of the leading players in Europe Generation capacity (GW)Customers (mn)EBITDA (€bn) 1.FY_05 2.Include Energy Only Source: company reports. Data refer to 2006 unless otherwise stated. (1) 1 (2) (1) (1) ()2 Enel aims to be the most efficient, market driven, quality focused provider of power and gas, creating value for customers, shareholders and people British Energy EDP CEZ Iberdrola Vattenfall RWE Endesa Enel Suez Eon EDF EDP Vattenfall Gas Natural GDF Iberdrola Endesa Centrica RWE Enel EDF EON CEZ Centrica Iberdrola Suez Vattenfall GDF Endesa RWE Enel EON EDF

Use: public May, Effective liberalization: an investor's perspective Romania a core investment in Enel’s Portfolio Early Entrant in Electricity Distribution & Sales came at the time of initial setting of the regulatory framework 2005: acquired majority of Electrica Banat & Electrica Dobrogea 2006 tender award of Electrica Muntenia Sud Substantial Position to Sustain Investments 2.5 million customers, km of network, employees * 380 mil euro of investments in Banat and Dobrogea to improve network in the next five years Bringing new technology (Telecontrol, Digital Meter, etc.) Ready to Invest in Generation Renewables Nuclear Conversions to coal Lignite Enel is a long-term industrial partner with a clear investment strategy for Romania * including EMS

Use: public May, Effective liberalization: an investor's perspective History and Development of the Company  Nationalization of approximately 1,250 private power companies  Enel established in December 1962 as a state-owned entity with the aim of providing low cost electricity to support the development of the country  Monopoly regime  Acquisition of Electra de Viesgo (Spain), several independent gas distributors (Italy) and renewables power plant (North, Central and South America)  Disposal of generation (Elettrogen and Eurogen) and distribution companies  Focus on core business  Divesting of no-core business (Real Estate, TLC)  Organization into Divisions and Business Areas  Disposal of generation (Interpower) and distribution companies  Terna IPO (current share ownership is less than 5%)  IPO of 4 th tranche Enel  Push on International expansion with acquisitions in Bulgaria, Romania, Slovakia  Transformation into a joint stock company  Bersani Decree (from a highly regulated market to a liberalized one)  Unbundling: creation of separate subsidiary companies and dispatching activities spin-off (GRTN)  IPO (31.74%)  Diversification  Investing in TLC (Wind) MonopolyPrivatizationLiberalizationInternationalization

Use: public May, Effective liberalization: an investor's perspective Evolution of main generator’s market share Italy is the Country where the main operator recorded the biggest decrease. In many other Countries the incumbent remains substantially stable or even increases its market share (*) 2004 data (British Energy) (data in %)

Use: public May, Effective liberalization: an investor's perspective Sixth market in Europe as regional market 114.9Germany 116.7France 78.5UK 79.5Italy 66.1 Spain 52 Installed capacity (GW) South-East Europe Albania Macedonia Bosnia Croatia Bulgaria Romania Greece Serbia Installed capacity (GW) A regional market of significant size made up of small and highly interconnected national markets Total internal demand (TWh) 221 Germany France UK Italy Spain South-East Europe Albania Macedonia Bosnia Croatia Bulgaria Romania Greece Serbia Internal demand (TWh)

Use: public May, Effective liberalization: an investor's perspective Regulatory framework fully in line with EU Retail competition well on its way, but… …Wholesale competition to be promoted by bringing liquidity to the market Investments in Generation required to balance fuel mix, improve cost competitiveness and decrease dependancy on specific fuel sources. Security of Supply – further develop interconnection and transport capacity Strategically located on a regional basis Romania as a EU Country Electricity Industry Outlook Romania has the potential to become an energy hub for the region