Definition of performance indicators
In order to present the results of the Group and analyze its financial structure, Enel has prepared separate reclassified schedules that differ from those envisaged under the IFRSEU adopted by the Group and presented in the consolidated financial statements. These reclassified schedules contain different performance indicators from those obtained directly from the consolidated financial statements, which management feels are useful in monitoring Group performance and representative of the financial performance of the Group’s business. In accordance with Recommendation CESR/05-178b, published on November 3, 2005, the criteria used to calculate these indicators are described below.
Gross operating margin: an operating performance indicator, calculated as “Operating income” plus “Depreciation, amortization and impairment losses”.
Group net ordinary income: this is Group net income produced by ordinary operations.
Net non-current assets: calculated as the difference between “Non-current assets” and “Non-current liabilities” with the exception of:
- “Deferred tax assets”;
- “Securities held to maturity”, “Financial investments in funds or portfolio management products at fair value through profit or loss”, “Securities available for sale” and “Other financial receivables”;
- “Long-term loans”;
- “Post-employment and other employee benefits”;
- “Provisions for risks and charges”;
- “Deferred tax liabilities”.
Net current assets: calculated as the difference between “Current assets” and “Current liabilities” with the exception of:
- “Long-term financial receivables (short-term portion)”, “Receivables for factoring advances”, “Securities”, “Financial receivables and cash collateral” and “Other financial receivables”;
- “Cash and cash equivalents”;
- “Short-term loans” and the “Current portion of longterm loans”.
Net assets held for sale: calculated as the algebraic sum of “Assets held for sale” and “Liabilities held for sale”.
Net capital employed: calculated as the algebraic sum of “Net non-current assets” and “Net current assets”, provisions not previously considered, “Deferred tax liabilities” and “Deferred tax assets”, as well as “Net assets held for sale”.
Net financial debt: a financial structure indicator, determined by “Long-term loans”, the current portion of such loans and “Short-term loans” less “Cash and cash equivalents”, “Current financial assets” and “Non-current financial assets” not previously considered in other balancesheet indicators. More generally, the net financial debt of the Enel Group is calculated in conformity with paragraph 127 of Recommendation CESR/05-054b implementing Regulation 809/2004/EC and in line with the CONSOB instructions of July 26, 2007, net of financial receivables and long-term securities.
Main changes in the scope of consolidation
In the two periods under review, the scope of consolidation changed as a result of the following main transactions.
- acquisition, on January 13, 2012, of an additional 49% of Rocky Ridge Wind Project, which was already a subsidiary (consolidated line-by-line) controlled through a 51% stake;
- acquisition, on February 14, 2012, of the remaining 50% of Enel Stoccaggi, a company in which the Group already held a 50% interest. As from that date the company has been consolidated on a line-by-line basis (previously consolidated proportionately in view of the joint control exercised);
- acquisition, on June 27, 2012, of an additional 50% of a number of companies in the Kafireas wind power pipeline in Greece, which had previously been included under “Elica 2” and accounted for using the equity method in view of the 30% stake held; as from that date the companies have therefore been consolidated on a line-by-line basis;
- acquisition, on June 28, 2012, of 100% of Stipa Nayaá, a Mexican company operating in the wind generation sector;
- disposal, on August 2, 2012, of the entire capital of Water & Industrial Services Company (Wisco), which operates in the waste water treatment sector in Italy;
- disposal, on October 9, 2012, of the entire share capital of Endesa Ireland, a company operating in the generation of electricity;
- acquisition, on October 12, 2012, of the additional 58% of Trade Wind Energy, a company in which the Group had held a stake of 42%; as a result of the purchase, the company is no longer consolidated using the equity method but is consolidated on a line-by-line basis;
- acquisition, on December 21, 2012, of 99.9% of Eólica Zopiloapan, a Mexican company operating in the wind generation sector.
- acquisition, on March 22, 2013, of 100% of Parque Eólico Talinay Oriente, a company operating in the wind generation sector in Chile;
- acquisition, on March 26, 2013, of 50% of PowerCrop, a company operating in the biomass generation sector; in view of the joint control exercised over the company together with another operator, the company is consolidated on a proportionate basis;
- disposal, on April 8, 2013, of 51% of Buffalo Dunes Wind Project, a company operating in the wind generation sector in the United States;
- acquisition, on May 22, 2013, of 26% of Chisholm View Wind Project and Prairie Rose Wind Project, both operating in wind generation in the United States, in which the Group previously held an interest of 49%. Following the acquisition, the two companies have been consolidated on a lineby- line basis rather than using equity method accounting;
- acquisition, on August 9, 2013, of 70% of Domus Energia (now Enel Green Power Finale Emilia), a company operating in the biomass generation sector;
- acquisition, on October 31, 2013, of 100% of Compañía Energética Veracruz, a company operating in the development of hydroelectric plants in Peru;
- disposal, on November 13, 2013, of the 40% stake in Artic Russia, with the consequent deconsolidation of the interest held by the latter in SeverEnergia;
- acquisition, in November and December 2013, of nine companies (representing three business combinations) operating in the development of wind power projects in the United States;
- disposal, on December 20, 2013, of the remaining stake in Enel Rete Gas, which had previously been accounted for using the equity method.
The balance-sheet figures at December 31, 2013 exclude (unless otherwise indicated) assets and liabilities held for sale, which essentially include Marcinelle Energie and other smaller companies that, on the basis of the status of negotiations for their sale, fall within the scope of IFRS 5.