Enel: solid results in 2023 with ordinary ebitda at 22 billion euros (+11.6%) and net ordinary income at 6.5 billion euros (+20.7%). Funds from operations up by 63% versus 2022, 3 billion euros more than the Enel Group’s highest historical level

Authorization to purchase and dispose of treasury shares

Enel’s Ordinary Shareholders’ Meeting of May 10^th, 2023 authorized the Board of Directors to purchase and subsequently dispose of the Company’s treasury shares for 18 months as from the date of the shareholders' resolution. On October 5^th, 2023, the Board of Directors, in implementation of this authorization, approved the start of a buy-back program to purchase 4.2 million treasury shares, equivalent to approximately 0.041% of Enel’s share capital, to serve the 2023 Long-Term Incentive Plan reserved to the top management of Enel and/or its subsidiaries pursuant to Art. 2359 of the Italian Civil Code approved by the same Shareholders’ Meeting of May 10^th, 2023, pursuant to Art. 114-bis of the Consolidated Financial Act. Following the purchases made in execution of the aforementioned Board resolution, the Company purchased a total of 4.2 million treasury shares, equal to approximately 0.041% of the share capital. Taking into account the 7,153,795 treasury shares already in the portfolio, as well as the disbursement on September 5^th, 2023 of a total of 1,268,689 Enel ordinary shares to the beneficiaries of the long-term incentive plan for 2019 and 2020 reserved to the management at Enel and/or its subsidiaries pursuant to Art. 2359 of the Italian Civil Code, the Company currently holds 10,085,106 treasury shares, equal to approximately 0.10% of the share capital, while the subsidiaries do not hold Enel shares.

In view of the persistence of the reasons justifying the aforementioned authorization granted by the Ordinary Shareholders' Meeting of May 10^th, 2023 and the approaching expiry date set by the latter, the Board of Directors has therefore deemed it appropriate to submit to the Shareholders’ Meeting – convened, as indicated below, for May 23^rd, 2024 – the renewal of the authorization to purchase and subsequently dispose of treasury shares – subject to revocation of the previous authorization – to be carried out in one or more installments, up to a maximum of 500 million ordinary shares in the Company, representing approximately 4.92% of Enel’s share capital, a total outlay of up to 2 billion euros.

The purchase and disposal of treasury shares is intended: (i) to offer shareholders an additional tool for monetizing their investment; (ii) to operate on the market with a medium and long-term investment view; (iii) to fulfil the obligations arising from the 2024 Long-Term Incentive Plan reserved to the top management of Enel and/or its subsidiaries pursuant to Article 2359 of the Italian Civil Code - which provides for a portion of the bonus, if accrued, to be paid in Enel shares and which will be submitted for approval to the Shareholders' Meeting called for May 23^rd, 2024 - and/or from any other equity plans for Directors or employees of Enel or its subsidiaries or affiliates; (iv) to support the market liquidity of the Enel share in such a way as to favor the regularity of trading and to avoid irregular price fluctuations, as well as to regularize the trend of negotiations and quotations, against the temporary distortions linked to excessive volatility or low trading liquidity; and (v) to constitute a “securities warehouse” which may be used in the context of any possible extraordinary financial transactions or for other purposes deemed to be in the financial, managerial and/or strategic interest for Enel.

The purchase of treasury shares will be allowed for eighteen months from the date of the shareholders’ resolution authorizing it; on the other hand, there is no time limit for the disposal of purchased treasury shares.

Purchases of treasury shares may be made at a price to be determined on a case-by-case basis, taking into account the method chosen for carrying out the transaction and in compliance with any applicable regulatory provisions, as well as, where applicable, the accepted market practices in force pro tempore, it being understood that such price shall in any case not differ, either downwards or upwards, by more than 10% from the reference price recorded on the Euronext Milan market, organized and managed by Borsa Italiana S.p.A., on the day preceding each individual transaction. The sale or other disposal of treasury shares in portfolio, on the other hand, shall take place in accordance with the terms and conditions established from time to time by the Board of Directors, in compliance with the limits that may be provided for by the laws in force, as well as, where applicable, by the accepted market practices in force pro tempore.

Purchases of treasury shares may be made according to one of the following operating modalities identified by Article 144-bis, paragraphs 1 and 1-bis of the CONSOB Issuers’ Regulations: (i) by means of a public tender or exchange offer; (ii) on regulated markets or Multilateral Trading Facilities (MTFs), in accordance with operating modalities set out in the rules for the organization and management of those markets, which do not allow direct matching of purchase offers with predetermined sales; (iii) by means of the purchase and sale of derivative instruments traded on regulated markets or MTFs that provide for the physical delivery of the underlying shares, provided that the market’s organizational and management rules establish trading arrangements for such instruments in line with the characteristics defined in Article 144-bis, paragraph 1, letter c) of the CONSOB Issuers’ Regulation; (iv) in the manner established by the market practices accepted by CONSOB pursuant to Article 13 of Regulation (EU) No 596/2014; (v) under the conditions set out in Article 5 of Regulation (EU) no. 596/2014.

The sale or other disposal of treasury shares may, on the other hand, take place in the manner deemed most appropriate by the Board of Directors and compliant with the interest of the Company and, in any case, in accordance with the relevant applicable laws and, where applicable, with the accepted market practices in force pro tempore.

Shareholders’ meeting and dividend

The Board of Directors has also convened the Ordinary Shareholders’ Meeting for May 23^rd, 2024, on single call, in order to:

1. Approve the financial statements and examine the consolidated financial statements as well as the consolidated non-financial statement related to the 2023 financial year.

2. Resolve upon the distribution of a total dividend of 0.43 euros per share, of which:

a) 0.215 euros per share taken from Enel’s net income, to cover the interim dividend for the 2023 financial year, in payment from January 24^th, 2024;

b) 0.065 euros per share taken from Enel's net income as the balance of the 2023 dividend;

c) 0.15 euros per share taken from the available reserve called “retained earnings”, again as the balance of the dividend for the 2023 financial year.

The total dividend therefore amounts to approximately 4,372 million euros, in line with the dividend policy for the 2023 financial year announced to the market, which envisages the payment of a total fixed dividend for 2023 of 0.43 euros per share. In this regard, it should be noted that the Board of Directors, in its meeting of November 7^th, 2023, resolved to distribute an interim dividend for the 2023 financial year of 0.215 euros per share, the payment of which was carried out as from January 24^th, 2024, with the “ex-dividend date” of coupon no. 39 coinciding with January 22^nd, 2024 and record date (i.e., the date of the title to the payment of the dividend itself) coinciding with January 23^rd, 2024. In accordance with the law, treasury shares in Enel’s portfolio on the latter record date did not participate in the distribution of said interim dividend. As regards the balance of the dividend for 2023, equal to 0.215 euros per share, the Board of Directors has proposed a payment date as from July 24^th, 2024, with the “ex-dividend date” of coupon no. 40 coinciding with July 22^nd, 2024 and record date coinciding with July 23^rd, 2024. In line with the legislation in force, treasury shares in Enel’s portfolio at the record date indicated above will not be accounted for in the balance dividend.

3. Resolve upon the authorization to purchase and dispose of treasury shares, subject to the revocation of the authorization granted by the Ordinary Shareholders’ Meeting of May 10^th, 2023.

4. Resolve upon the adoption of a long-term incentive plan (“Incentive Plan”), characterized by a three-year vesting period, which grants the relevant recipients a bonus consisting of a component in Enel shares and a monetary component, subject to and in proportion to the achievement of the following performance objectives over the 2024-2026 period: (i) Total Shareholders’ Return (“TSR”), measured with reference to the performance of Enel’s share compared with that of the Euro Stoxx Utilities – UEM index; (ii) ROIC (Return on Invested Capital) - WACC (Weighted Average Cost of Capital); (iii)  GHG “Scope 1 and Scope 3” emissions intensity related to the Group’s Integrated Power (gCO_2eq/kWh) in 2026 (“GHG Scope 1 and Scope 3 emissions”), subject to exceeding a gateway objective concerning the GHG “Scope 1” emissions intensity related to Group’s Power Generation (gCO_2eq/kWh) in 2026; (iv) percentage of women in management and middle management compared to the total population of managers and middle managers at the end of 2026. In particular, the Incentive Plan – which assigns a weighting of 45% to TSR, a weighting of 30% to ROIC–WACC, a weighting of 15% to GHG Scope 1 and Scope 3 emissions and a weighting of 10% to the percentage of women in management and middle management compared to the total population of managers and middle managers at the end of 2026 - is aimed at the Chief Executive Officer and Executives with strategic responsibilities of Enel, as well as managers of Enel itself and/or its subsidiaries pursuant to Article 2359 of the Italian Civil Code, as identified at the time of the assignment of the same Plan. Moreover the Plan, in view of the characteristics of its structure, the performance objectives identified, and the weight given to each of them, is also aimed at reinforcing the alignment of management interests with the priority objective of creating sustainable value for shareholders over the long term.

For a detailed description of the Incentive Plan, please refer to the information document, drafted pursuant to Article 114-bis of the Consolidated Finance Act and Article 84-bis of the CONSOB Issuers’ Regulation, which will be made available to the public in accordance with the law.

5. Adopt, with reference to the report on remuneration policy and compensations paid: (i) a binding resolution on the first section of the report itself, which illustrates Enel’s policy on the remuneration of Directors, General Manager, Executives with strategic responsibilities and members of the Board of Statutory Auditors for the 2024 financial year, as well as the procedures used for the adoption and implementation of such policy; (ii) a non-binding resolution on the second section of the report itself, that describes the compensations paid to Directors, General Manager, Executives with strategic responsibilities and members of the Board of Statutory Auditors in the 2023 financial year.

The documentation relating to the items on the agenda of the Shareholders' Meeting, as required by current legislation, will be made available to the public within the terms of the law.

Bond issues and maturing bonds

The main bond issues made in 2023 by Enel Group companies include:

• a multi-tranche non-convertible subordinated perpetual hybrid bond for a total value of 1,750 million euros issued by Enel in January 2023 with no fixed maturity, only due in the event of winding up or liquidation of the Company, structured as follows:
  •  1,000 million euros, at a fixed annual coupon rate of 6.375% until the first reset date on July 16^th, 2028;
  •  750 million euros, at a fixed annual coupon rate of 6.625% until the first reset date on July 16^th, 2031.
• a multi-tranche “Sustainability-Linked bond”, guaranteed by Enel, for a value of 1,500 million euros, with repayment in a single installment, issued in February 2023 by Enel Finance International, structured as follows:
  • 750 million euros, at a fixed rate of 4.000% and maturing in February 2031;
  • 50 million euros, at a fixed rate of 4.500% and maturing in February 2043;
• a bond for a value of 950 million Brazilian reals (equivalent to 177 million euros at December 31^st, 2023), maturing in January 2026 and which provides for the payment of a floating-rate coupon CDI + 1.48%, issued in January 2023 by Enel Distribuição Ceará;
• a bond for a value of 500 million Brazilian reals (equivalent to 93 million euros at December 31^st, 2023), maturing in May 2024 and which provides for the payment of a floating-rate coupon CDI + 1.65%, issued in May 2023 by Enel Distribuição Ceará;
• a bond for a value of 650 million Brazilian reals (equivalent to 121 million euros at December 31^st, 2023), maturing in June 2024 and which provides for the payment of a floating-rate coupon CDI + 1.65%, issued in June 2023 by Enel Distribuição Ceará.

In the period between January 1^st, 2024 and June 30^th, 2025, bonds issued by Enel Group companies are expected to mature for a total amount of 8,843 million euros, including:

• 100 million euros relating to a floating-rate bond issued by Enel Finance International and guaranteed by Enel, maturing in February 2024;
• 300 million Brazilian reals (equivalent to 56 million euros at December 31^st, 2023) relating to a floating-rate bond issued by Enel Distribuição Ceará, maturing in March 2024;
• 400 million US dollars (equivalent to 362 million euros at December 31^st, 2023) relating to a fixed-rate bond issued by Enel Generación Chile, maturing in April 2024;
• 750 million euros relating to a fixed-rate bond issued by Enel, maturing in May 2024;
• 1,000 million euros relating to a fixed-rate bond issued by Enel Finance International and guaranteed by Enel, maturing in June 2024;
• 500 million Brazilian reals (equivalent to 93 million euros at December 31^st, 2023) relating to a floating-rate bond issued by Enel Distribuição Ceará, maturing in May 2024;
• 650 million Brazilian reals (equivalent to 121 million euros at December 31^st, 2023) relating to a floating-rate bond issued by Enel Distribuição Ceará, maturing in June 2024;
• 850 million pounds sterling (equivalent to 981 million euros at December 31^st, 2023) relating to a fixed-rate bond issued by Enel Finance International and guaranteed by Enel, maturing in August 2024;
• 250,000 million Colombian pesos (equivalent to 58 million euros at December 31^st, 2023) relating to a fixed-rate bond issued by Enel Colombia, maturing in August 2024;
• 225 million Swiss francs (equivalent to 242 million euros at December 31^st, 2023) relating to a fixed-rate bond issued by Enel Finance International and guaranteed by Enel, maturing in September 2024;
• 1,500 million US dollars (equivalent to 1,358 million euros at December 31^st, 2023) relating to a fixed-rate bond issued by Enel Finance International and guaranteed by Enel, maturing in September 2024;
• 1,250 million euros relating to a fixed-rate bond issued by Enel Finance International and guaranteed by Enel, maturing in September 2024;
• 985 million euros relating to a fixed-rate bond issued by Enel Finance International and guaranteed by Enel, maturing in January 2025;
• 50 million euros relating to a floating-rate bond issued by Enel Finance International and guaranteed by Enel, maturing in April 2025;
• 180 million euros relating to a fixed-rate bond issued by Enel Finance International and guaranteed by Enel, maturing in April 2025;
• 51 million euros relating to a floating-rate bond issued by Enel, maturing in May 2025;
• 700 million Brazilian reals (equivalent to 130 million euros at December 31^st, 2023) relating to an amortizing floating-rate bond issued by Enel Distribuição São Paulo, maturing in May 2025;
• 270 million Brazilian reals (equivalent to 50 million euros at December 31^st, 2023) relating to an amortizing floating-rate bond issued by Enel Distribuição Ceará, maturing in June 2025;
• 750 million US dollars (equivalent to 679 million euros at December 31^st, 2023) relating to a fixed-rate bond issued by Enel Finance International and guaranteed by Enel, maturing in June 2025.

Recent events

November 22^nd, 2023: Enel has announced that its subsidiaries Enel Américas SA (“Enel Américas”) and Enel Perú SAC (“Enel Perú”), the latter controlled by Enel through the Chilean listed company Enel Américas, have signed an agreement with Niagara Energy SAC (“Niagara Energy”), a Peruvian company controlled by the global investment fund Actis, for the sale of all the equity stakes held by the Enel Group in power generation companies Enel Generación Perú SAA (“Enel Generación Perú”) and Compañía Energética Veracruz SAC ("Compañía Energética Veracruz"). Specifically, the agreement establishes that Niagara Energy will acquire the stakes held by Enel Perú and Enel Américas in Enel Generación Perú’s share capital (equal to approximately 66.50% and 20.46%, respectively) as well as those held by Enel Perú in Compañía Energética Veracruz’s share capital (equal to 100%) for a total consideration of about 1.4 billion US dollars (approximately 1.3 billion euros[1]), equivalent to an overall enterprise value of around 2.1 billion US dollars (about 1.9 billion euros[2], on a 100% basis). This consideration is subject to adjustments customary for these kinds of transactions in consideration of the time between signing and closing.

December 29^th, 2023: Enel announced that, through its 100% subsidiary Enel Green Power S.p.A. (“EGP”), had finalized the sale of 50% of Enel Green Power Hellas (“EGPH”), EGP's fully-owned renewable energy subsidiary in Greece, to Macquarie Asset Management, acting through Macquarie Green Investment Group Renewable Energy Fund 2 (“MGREF2”), following the fulfilment of all the conditions precedent customary for these kinds of transactions, including the clearance from competent Antitrust authorities, set forth in the related sale agreement signed on July 26^th, 2023. In line with the above agreement, the total consideration cashed in by EGP was approximately 350 million euros, equal to an enterprise value on a 100% basis of approximately 980 million euros. Following the transaction’s closing, EGP and Macquarie Asset Management entered into a shareholder agreement which envisages the joint control of EGPH in order to co-manage the company's current renewable generation portfolio alongside continuing to develop its project pipeline, further increasing its installed capacity.

January 16^th, 2024: Enel announced that Enel Finance International N.V. (“EFI”), a finance company controlled by Enel itself had launched a dual-tranche “Sustainability-Linked bond” for institutional investors in the Eurobond market for a total of 1.75 billion euros. The issue, which is guaranteed by Enel, was more than three times oversubscribed, with total orders of approximately 5.8 billion euros and a significant participation of Socially Responsible Investors (SRI). The new issue envisages the use of two sustainability Key Performance Indicators (“KPIs”) for each tranche, illustrated in the Sustainability-Linked Financing Framework last updated in January 2024, confirming Enel's commitment towards the energy transition as well as contributing to the environmental and financial sustainability of the Company's development strategy.

The issuance is structured in the following two tranches:

• 750 million euros, at a fixed rate of 3.375% maturing July 23^rd, 2028;
• 1,000 million euros, at a fixed rate of 3.875% maturing January 23^rd, 2035.

The new Sustainability-Linked Bond contributes to the achievement of the Group objectives related to sustainable funding sources on Group’s total gross debt, set at around 70% in 2026.

January 22^nd, 2024: Enel announced that it had completed – as a result of the purchase transactions completed on January 18^th, 2024 – the treasury shares purchase program to serve the Long-Term Incentive Plan for 2023 for Enel and/or its subsidiaries’ management pursuant to Art. 2359 of the Italian Civil Code, which was launched on October 16^th, 2023. As part of this program, Enel purchased a total of 4.2 million treasury shares, equal to approximately 0.0413% of the share capital, at a volume-weighted average price of 6.3145 euros per share and for a total consideration of 26,520,849.002 euros.

February 20^th, 2024: Enel announced that it had successfully launched on the European market the issuance of a non-convertible subordinated perpetual hybrid bond for institutional investors denominated in euros, for an aggregated principal amount of 900 million euros. The issuance was more than three times oversubscribed, with total orders for more than 3 billion euros. The non-convertible subordinated perpetual hybrid bond is structured in a single 900-million-euro tranche, has no fixed maturity, and is due and payable only in the event of winding up or liquidation of the Company, as specified in the relevant terms and conditions.

March 1^st, 2024: Enel announced that, acting through its subsidiary Enel Italia SpA (“Enel Italia”), it had signed an agreement with Sosteneo Fund 1 HoldCo Sàrl ("Sosteneo HoldCo")[3] for the acquisition by the latter of 49% of the share capital of Enel Libra Flexsys S.r.l. (“Enel Libra Flexsys”), a company fully-owned by Enel Italia and established for the implementation and operation of a portfolio of:

• 23 Battery Energy Storage System (BESS) with a total capacity of 1.7 GW;
• 3 renovation projects for Open Cycle Gas Turbine (OCGT) plants with a total capacity of 0.9 GW.

The agreement foresees the recognition of a consideration by Sosteneo HoldCo of approximately 1.1 billion euros for the acquisition of 49% of the share capital of Enel Libra Flexsys. Furthermore, the consideration is subject to an adjustment mechanism customary for these kinds of transactions. The enterprise value on a 100% basis of Enel Libra Flexsys recognized in the agreement is equal to around 2.5 billion euros, once the investment cycle foreseen by the project will be completed.

The closing of the sale is subject to a number of conditions precedent customary for these kinds of transactions, including the clearance from the competent antitrust authorities and the successful completion of the golden power procedure with the Presidency of Italy’s Council of Ministers.

March 9^th, 2024: Enel announced that, with the aim of rationalizing the management of the distribution networks that interoperate in Lombardy, its subsidiary e-distribuzione S.p.A. (“e-distribuzione”) had signed an agreement with A2A S.p.A. (“A2A”) for the sale to the latter of 90% of the capital of a newly incorporated vehicle (“NewCo”), to which electricity distribution activities in some municipalities of the provinces of Milan and Brescia^[4] will be contributed. The agreement provides for A2A to pay a consideration of approximately 1.2 billion euros, based on an enterprise value (for 100% of the company) of around 1.35 billion euros. The consideration, which will be paid at closing, is subject to a price adjustment mechanism customary for these kinds of transactions. Upon completion of the transaction, e-distribuzione will retain a 10% stake of NewCo’s capital, to support the startup phase of the company, and which will be subject to a put and call option mechanism, that can be triggered starting from the first year from completion of the transaction. Furthermore, specific agreements between the parties are foreseen through which e-distribuzione will guarantee supporting activities to ensure continuity of the service. The closing of the transaction is subject to a number of conditions precedent, including Antitrust clearance, the successful completion of the golden power procedure by the Presidency of Italy’s Council of Ministers and the authorization to transfer the electricity distribution service concessions to NewCo.

More information on these events is available in the related press releases published on the Enel website at https://www.enel.com/en/media/explore/search-press-releases

Notes

At 6:00 p.m. CET today, March 21^st, 2024, a conference call will be held to present the results for 2023 and the progress of the 2024-2026 Strategic Plan to financial analysts and to institutional investors. Journalists are also invited to listen in on the call. Documentation relating to the conference call will be available on the Enel website www.enel.com, in the “Investors” section, from the beginning of the conference call. The Consolidated Income Statement, Statement of Consolidated Comprehensive Income, Statement of Consolidated Financial Position and Consolidated Statement of Cash Flows of the Enel Group and the analogous financial statement formats of the Parent Company Enel, are attached hereto. It should be noted that these tables and the explanatory notes have been submitted to the Board of Statutory Auditors and to the external auditors for their assessments. A descriptive summary of the "alternative performance indicators" used in this press release is also attached. The officer responsible for the preparation of the corporate financial reports, Stefano De Angelis, certifies in accordance with Art. 154-bis, paragraph 2, of the Consolidated Financial Act that the accounting information contained in this press release corresponds with that contained in the accounting documentation, books and records.

Accounting standards, data comparability and amendments to the scope of consolidation

The balance sheet data at December 31^st, 2023 exclude (unless otherwise indicated) the values relating to assets and liabilities held for sale attributable to the activities, in Peru, of electricity distribution and generation as well as to advanced energy services, to 3SUN in Italy, to the activities related to a portfolio of renewable assets in the United States, to a wind farm under construction in Colombia, to Ngonye in Africa, to Compañía de Transmisión del Mercosur S.A. and Transportadora de Energía S.A. in Argentina and to Finsec Lab in Israel. The data reported and commented on above are therefore homogeneous and comparable in the two periods under comparison.

Regarding data reporting by Business Segment, the following adjustments were made:

• the figures for Enel X, that in the year ending on December 31^st, 2022 were reported separately, were included under End-User Markets;
• the figures for Enel X Way that in the year ending on December 31^st, 2022 were reported under “Holding, Services and Other”, were included under End-User Markets.

In order to improve the reporting of net financial debt, the Group has decided to exclude from its determination the fair value of the cash flow hedge and fair value hedge derivatives used to hedge the exchange rate risk on loans. Accordingly, in order to improve the comparability of figures, it was necessary to recalculate the net financial debt at December 31^st, 2022 for an amount equal to 595 million euros.

The Consolidated Balance Sheet for the 2022 Consolidated Financial Statements has been restated to take into account the effects of the Amendment to IAS 12, in force after January 1^st, 2023, which clarifies that the exemption from initial recognition provided for by the standard no longer applies to transactions that give rise to taxable and deductible temporary differences of the same amount on transactions such as leasing and decommissioning.

The Consolidated income statement and Total consolidated income statement relating to the 2022 Consolidated Financial Statements, have been adjusted to take into account the submission of the results attributable to a number of operational activities discontinued during the fourth quarter of 2023 in line with the provisions of “IFRS 5 – Non-current assets held for sale and discontinued operations”.

Key performance indicators

This press release uses some “alternative performance indicators” that are not envisaged by the international accounting standards adopted by the European Union – IFRS-EU, but which management deems useful for the better evaluation and monitoring of the Group's economic and financial performance. With regard to these indicators, on April 29^th, 2021, CONSOB issued Warning Notice no. 5/21 making applicable the Guidelines issued on March 4^th, 2021 by the European Securities and Markets Authority (ESMA) on disclosure requirements pursuant to EU Regulation 2017/1129 (the so-called “Prospectus Regulation”), which are applicable from May 5^th, 2021 and replace the references to the CESR recommendations and those in Communication no. DEM/6064293 of July 28^th, 2006 on net financial position.

The Guidelines update the previous CESR Recommendations (ESMA/2013/319, as revised on March 20^th, 2013) with the exception of those concerning issuers carrying out special activities set out in Annex no. 29 of Delegated Regulation (EU) 2019/980, which have not been converted into Guidelines and still remain applicable.

These Guidelines are intended to promote the usefulness and transparency of alternative performance indicators included in regulated information or prospectuses within the scope of application of Directive 2003/71/EC, in order to improve their comparability, reliability and comprehensibility.

In line with the abovementioned communications, the criteria used for the construction of these indicators for the Enel Group are provided below:

• EBITDA is an indicator of Enel’s operating performance, calculated as “EBIT” plus “Impairment losses / (Reversals of impairment) net of trade and other receivables” and “Depreciation, amortization and impairment losses”;
• Ordinary EBITDA is defined as the "EBITDA" attributable to ordinary operations only, linked to the business models of Ownership, Partnership and Stewardship according to which the Group operates, integrated with the ordinary EBITDA attributable to discontinued operations, if present. It also excludes costs associated with corporate restructuring plans and “extraordinary solidarity contributions” established by local governments abroad to be paid by companies in the energy sector;
• Group net ordinary income is determined by rectifying “Group net income” from the items previously commented on in “Ordinary EBITDA”, taking into account any tax effects and non-controlling interests. Furthermore, it excludes certain financial components not strictly attributable to the Group's core operations, as well as the extraordinary solidarity contribution to be paid by companies in the energy sector in Italy;
• Net financial debt is an indicator of the financial structure, determined by:
  •  “Long-term borrowings”, “Short-term borrowings”, “Current portion of long-term borrowings”, “Other non-current financial liabilities” and the “Other current financial liabilities included in net financial debt” entry included in “Other current financial liabilities”;
  • net of “Cash and cash equivalents”;
  • net of “Current financial assets included in net financial debt”, included in "Other current financial assets", which includes: (i) the current portion of long-term financial receivables; (ii) securities; (iii) financial receivables; (iv) other current financial assets;
  • net of “Other non-current financial assets included in net financial debt” included in "Other non-current financial assets" which includes: (i) securities; (ii) financial receivables.

More generally, the Enel Group's net financial debt is reported in accordance with the provisions of Guideline no. 39, issued on March 4^th, 2021 by ESMA, applicable as from May 5^th, 2021, and with the above Warning Notice no. 5/21 issued by CONSOB on April 29^th, 2021.

• Net capital employed is calculated as the algebraic sum of “Net non-current assets”[5] and “Net current assets”[6], “Provisions for risks and charges”, “Employee benefits”, “Deferred tax liabilities”, “Deferred tax assets”, and “Net assets held for sale”.