1. Uso: riservato aziendale 0 eProcurement strategy Case: Enel Spa Ermanno Boeris Bratislava, February 2007

2. Uso: riservato aziendale 1 Our Mission Enel in brief Our mission is to be the most efficient, market driven, quality focused provider of power and gas creating value for our customers, shareholders and people.  Reducing power generation costs through plants conversion and alignment of our other operating costs with international best practice;  Increasing electricity generated from renewable resources;  Growing natural gas distribution business in Italy, where we are the second largest distributor;  Extracting value from the integrated management of electricity and gas services, and meeting our operating efficiency targets in the distribution and sale of electricity and gas;  Expanding our operations outside Italy particularly in countries where we are already present or where market liberalization and privatization efforts are in progress, allowing us to exploit the skills and experience we have acquired in the Italian market. Our Strategy

3. Uso: riservato aziendale 2 Enel Group structure Board of directors Chief Executive Officer and General Manager Generation and Energy Management Market Infrastructures and network International Corporate Activities Chairman (F.Conti) (P.Gnudi) (S.Fontecedro)(F.Starace)(L.Gallo)(F.Conti a.i.)

4. Uso: riservato aziendale 3 Results overview 1H20051H2006% Revenues 16,15219,06518% Ebitda (1) 4,2024,3613.8% Group Net income 1,9151,9783.3% of which net ordinary income (2) 1,5871,7228,5% Net debt (3) 12,31214,07714.3% Millions € (1)1H05 EBITDA restated (2)1H05 net of Euro 328mn capital gain on Terna disposal. 1H06 net of Euro 256 mn income on Wind-Weather share transaction (3)1H05 figure as of December 31,2005

5. Uso: riservato aziendale 4 La presenza di Enel nel mondo ROMANIA 51% of Distribution companies Banat e Dobrogea 1.4 million customers RUSSIA North Western thermal power plant management contract 450 MW 1.592 MW Thermal 671 MW Hydroelectric 600,000 customers ! 80% of EUFR: 294 MW Wind 89 MW Hydroelectric 62 MW Cogeneration SPAIN BULGARIA 67% of Maritza East III: 732 MW Thermal 5% Powernext Europe: 4.005 MW and 2 million customers North and Latin America 565 MW Data as of Aprile 15 1 th 2004 1 – On the regulated market 286 MW Hydroelectric 67 MW Wind 21 MW Biomass and Biogas 171 MW Hydroelectric 20 MW Wind SLOVACCHIA 66% of Slovenske Elektrarne 6.881 MW

6. Uso: riservato aziendale 5 eProcurement project brings a common vision on the process Vendors Mgmt TenderingTendering Contract fulfillment Enel eProcurement model Vendors Scouting Portal On-line qualification Economical offer and negotiation Tender mgmt On line tender system Contract Mgmt Electronic catalogue Electronic data exchange (EDI) Comunication (contractual and managerial) Enel Portal Vendors Evaluation Vendor Rating Technical offers Sistema di codifica prodotti Linee Guida e Regolamenti 7 Tasks Portale Acquisti WebEDI Catalogue Aste e Gare online Scouting/RFI/RFQ Strumenti Operativi Abilitatori del processo

7. Uso: riservato aziendale 6 Implementation of controlling activities Extensive use of strategic sourcing Broader use of Framework Agreements “Compliance” improvements Lower fragmentation on spending Improved efficiency Centralized management and controland local operational activies Use of new methodology (Electronic catalogue, e-tender, etc…) Implementation of controlling activities Extensive use of strategic sourcing Broader use of Framework Agreements “Compliance” improvements Lower fragmentation on spending Improved efficiency Centralized management and controland local operational activies Use of new methodology (Electronic catalogue, e-tender, etc…) AfterAfter  Extensive use of microcontracts  Poor knowledge of contracted amounts  No synergies within the whole group  Low “compliance” on existing Framework Agreement  Split spending  Technical and tactical aspects overcome strategic issues  Lack of efficiency in the process  “Traditional” purchasing approach  Extensive use of microcontracts  Poor knowledge of contracted amounts  No synergies within the whole group  Low “compliance” on existing Framework Agreement  Split spending  Technical and tactical aspects overcome strategic issues  Lack of efficiency in the process  “Traditional” purchasing approach BeforeBefore Results of eProcurement projects implementation The new role of buyer

8. Uso: riservato aziendale 7 “On-line” tenders follows traditional procurement steps ENEL uses a web based application that allows any buyer to generate, customize and launch tenders of any kind of goods, services and works. ECONOMIC OFFER (“Closed Envelope”) TECHNIC AL OFFER INITIAL PHASE - ANNOUNCEMEN T (exchange of technical infos ) ECONOMIC OFFER (Tender) NEGOTIATION PHASE AWARDING On Line tender follows traditional steps of any negotiation Higher interaction with vendors Better knowledge of markets Improve efficiency, transparency, traceability Achievable benefits

9. Uso: riservato aziendale 8 Electronic Catalogue Requester Issue Request Request for Purchase Chief Approve RfP Supplier Receive order Send Order The electronic catalogue is a simple and shared tool that allows end-users to order materials listed in the catalogue. The catalogue is the results of a Framework Contract negotiated for all ENEL by Central Procurement Office Request for purchases issued through catalogue Electronic approval workshop Receive goods and control on invoices payments ERP System

10. Uso: riservato aziendale 9 Improvement area of electronic catalogue Reduce micro-contracts Semplify management of requests and partial contracts Scale Economy Despite the complexity of the implementation path, with the electronic catalogue there is an high rate of return considering price discounts and process efficiency gains. Achieved benefits Prices dispersion Process costs Rationalize spending Concentrate spot purchases Same price applicable to any office or power plant Extented use of framework agreement

11. Uso: riservato aziendale 10 Exchange of technical and administrative data EDI Internet Enel Partner XML Semplify realization activities Reduced management costs High compatibility between different hardware and software The Web-EDI based systems uses internet as communication channel allowing the transmission of data and document with very low costs (almost zero) Major strong points

12. Uso: riservato aziendale 11 Tender Catalogue Qualification Over 10.500 suppliers registered and out of those 1.880 already pre-qualified Portal Avg. Visits by month Reduced costs by contract standardization 2.617 tenders (of those ca.78% on-line) for a value of 2.057 mln € and average savings of 15% Reduced time to qualify vendors Reduced costs on documentation handling Ca.60 contracts (with 50 suppliers) Increased compliance on Framework Agreements Increased number of tenderers Improved quality of process Ca. 80 link/month per visitor Publishing of tenders Access to on-line documentation Achieved results WebEDI Exchanged documents: 677.620 Of those invoices: 178.096 Other administrative documents: 361.786 Other technical documents: 137.738

13. Uso: riservato aziendale 12 Thank you for the attention