Annual Report_2018 Annual Report 2018 enel.com Annual Report 2018 Annual Report 2018 Contents Report on operations 7 Reports 449 > Enel organizational model | 8 > Report of the Board of Statutory Auditors > Corporate boards and powers | 10 to the Shareholders’ Meeting of Enel SpA | 450 > Letter to shareholders and other stakeholders | 13 > Report of the independent Audit Firm on the 2018 financial statements > Summary of results | 18 of Enel SpA | 464 > Overview of the Group’s operations, > Report of the independent Audit Firm performance and financial position | 30 on the 2018 consolidated financial statements > Results by business area | 44 of the Enel Group | 472 > Performance and financial position of Enel SpA | 87 > Summary of the resolutions of the Ordinary > Significant events in 2018 | 93 Shareholders’ Meeting | 482 > Reference scenario | 106 > Main risks and uncertainties | 146 > Outlook | 151 Attachments 485 > Other information | 153 > Subsidiaries, associates and other significant > Sustainability and the fight equity investments of the Enel Group against climate change | 157 at December 31, 2018 | 486 > Related parties | 182 > Reconciliation of shareholders’ equity and net income of Enel SpA and the Corporate Governance 545 corresponding consolidated figures | 183 > Report on corporate governance and ownership structure | 546 Consolidated financial statements 185 > Financial statements | 186 > Notes to the consolidated financial statements | 193 > Declaration of the Chief Executive Officer and the officer responsible for the preparation of the corporate financial reports | 362 Financial statements of Enel SpA 365 > Financial statements | 366 > Notes to the separate financial statements | 373 > Declaration of the Chief Executive Officer and the officer responsible for the preparation of the corporate financial reports | 446 ION S e VI l p o e p r y o g f o l o y he greatest n ve t g l h so r o c t e r e e t n ow P r world e u w n ing o e ac e f g p es n O g n n i le o l t g ha y c a g n r a e n m e f f o o s S s d p l i E y r a h U o L s w w r A e e V w y n h e t t g r r n n a e e o p n t p e p O w f Tru u e s o t n n s e e o s t p u O p u w N e e n l O n e I p p o S o t O e S p p I u e M r n o e p m r O o f y t i c y i r t t i c e l v i e t o t c s s a e c o c r a n P e p O n o i t a v o n n I ty ibili Respons Enel is Open Power M P a R k I e N W F d C o o ec l is IP rk lo i L w S on E fo Q h s S r u th ar in OF t A ic ro e da C h d k u in ily ON e o ly g fo a DUC i p s h rm ct T n t h w a ivit te a if i ti ies g n t p th on and ra d ri c , b ta t p o om ei ke r io r rit ng espon n o ie m w sibility for them m s itm illin of o if e g t W a te th nt o c ers l s e s, ollab f oth o l, a co pu orate ion o rk re fe n rsu and ope contribut c b tes in n to the fo o eh t c g a c gn a ha ctivi us iz vio ng ties in in r es with d g g an etermination and passion o an d m n d o sa le ve ti ve pr Get sf ra o-a results by xcellence yin gin ctiv aiming for e g g ely Pr cu ind to im g op st ivid prove ll-bein R os om ua conditio and we ec e er l di ns for health, safety o ne s a vers gn w nd ity (c iz so /or ultur .) e m lu co e, gend lity etc e tio -wo er, age, disabilities, persona rit n a rker in nd s, ac c do ting o-w no effecti o t g vely and rap rke ive u idly rs a p wh nd en fa giv ced w e fe ith obstac edb les or failure ack t hat ca n impro ve their contribution Annual Report 2018 4 ION S e VI l p o e p r y o g f o l o y he greatest n ve t g l h so r o c t e r e e t n ow P r world e u w n ing o e ac e f g p es n O g n n i le o l t g ha y c a g n r a e n m e f f o o s S s d p l i E y r a h U o L s w w r A e e V w y n h e t t g r r n n a e e o p n t p e p O w f Tru u e 5 s o t n n s e e o s t p u O p u w N e e n l O n e I p p o S o t O e S p p I u e M r n o e p m r O o f y t i c y i r t t i c e l v i e t o t c s s a e c o c r a n P e p O n o i t a v o n n I ty Report on operations ibili Respons Enel is Open Power M P a R k I e N W F d C o o ec l is IP rk lo i L w S on E fo Q h s S r u th ar in OF t A ic ro e da C h d k u in ily ON e o ly g fo a DUC i p s h rm ct T n t h w a ivit te a if i ti ies g n t p th on and ra d ri c , b ta t p o om ei ke r io r rit ng espon n o ie m w sibility for them m s itm illin of o if e g t W a te th nt o c ers l s e s, ollab f oth o l, a co pu orate ion o rk re fe n rsu and ope contribut c b tes in n to the fo o eh t c g a c gn a ha ctivi us iz vio ng ties in in r es with d g g an etermination and passion o an d m n d o sa le ve ti ve pr Get sf ra o-a results by xcellence yin gin ctiv aiming for e g g ely Pr cu ind to im g op st ivid prove ll-bein R os om ua conditio and we ec e er l di ns for health, safety o ne s a vers gn w nd ity (c iz so /or ultur .) e m lu co e, gend lity etc e tio -wo er, age, disabilities, persona rit n a rker in nd s, ac c do ting o-w no effecti o t g vely and rap rke ive u idly rs a p wh nd en fa giv ced w e fe ith obstac edb les or failure ack t hat ca n impro ve their contribution 6 Annual Report 2018 01 Report on operations Report on operations 7 Enel organizational model The Enel Group structure is organized into a matrix that com- America, Africa, Asia and Oceania), which are respon- prises: sible for managing relationships with institutional bodies > Business Lines (Global Thermal Generation, Global Trad- and regulatory authorities, as well as selling electricity ing, Global Infrastructure and Networks, Enel Green and gas, in each of the countries in which the Group op- Power, Enel X), which are responsible for managing and erates, while also providing staff and other service sup- developing assets, optimizing their performance and the port to the Business Lines. return on capital employed in the various geographical The following functions provide support to Enel’s business areas in which the Group operates. The Business Lines operations: are also responsible for improving the efficiency of the > Global service functions (Global Procurement and Global processes they manage and sharing best practices at Digital Solutions), which are responsible for managing in- the global level. The Group will benefit from a central- formation and communication technology activities and ized industrial vision of projects in the various Business procurement at the Group level; Lines. Each project will be assessed not only on the ba- > Holding company functions (Administration, Finance and sis of its financial return but also in relation to the best Control, People and Organization, Communications, Le- technologies available at the Group level; gal and Corporate Affairs, Audit and Innovability), which > Regions and Countries (Italy, Iberia, South America, Eu- are responsible for managing governance processes at rope and Euro-Mediterranean Affairs, North and Central the Group level.