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The Endesa acquisition: a story of value creation

London December 12, 2007

Agenda

Transaction rationale Synergies Conclusions

Transaction rationale
Strong contribution to operating and financial growth Business diversification and wider global footprint improves risks/return profile Creation of a global leader in renewable energies Strong potential for synergies, savings and cross-transfer of best practices EPS accretion from year one

A story of value creation

Endesa platform 1/2


Opportunity to leverage on Endesas leading positions in complementary markets to Acciona and Enel Very promising prospects based on sound fundamentals:
solid economic growth strong electricity demand growth (>3%) strong presence in the mid stream gas activities limited capacity reserve margin expected increasing wholesale prices balanced generation mix

Endesa platform 2/2


Solid operating and financial performance from a diversified portfolio Efficiencies ahead of current Business Plan Iberia:
Leadership in liberalized market Competitive fuel cost Growth in line with current Business Plan

Latam
Strong operating growth based on sound demand fundamentals Regulatory improvements Performance in line with current Business Plan

Strong cash flow generation and financial capacity to accelerate growth

Endesa: Strong cash flow generation thanks to diversification

A balanced capacity mix

to serve 21.6 million customers

37.6 GW
Nuclear 9% Renew. 4% Peru 5% Hydro 37% Colombia 10% Argentina 10%

Fuel-oil 19%

Spain 46%

CCGT 14%

Brasil 23% Coal 17% Chile 6%

Note: Excluding assets to be divested. Data as of Sept-07

Endesa: Leading position in high growth markets


48% 43% 31% 24% 15% Output Sales

29%

28% 21% 18% 17% 6%

1% Spain
Market position Demand Growth 2006-12 (Cagr)

Chile
#1 #1

Colombia
#1 #1

Peru
#1 #1

Argentina
#1 #1

Brazil

#1 #1

3.5% 3.5%
2006 Figures

6.3% 6.3%

4.5% 4.5%

6.4% 6.4%

5.1% 5.1%

5.0% 5.0%

Agenda

Transaction rationale Synergies Conclusions

Synergies by category
1010 330
330 787
Opex & Margins Capex

mn

680
457

4% 4% Savings 11 Savings

698
475

223
Total savings Efficiencies already included in the strategic plan

223
Additional synergies/ efficiencies 2012

223
Synergies at regime

further possible upside under investigation


(1) Over 2006 total cost base, excluding Europe
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Annual savings of mn 680 by 2012


6%11 6% 3% 3% 4% 4%
% cost base 2006

94
9 85

680
101

LatAm

216
3% 3%

37 179

2.5% 2.5% 12% 12%

123
16 107

NEEP
525

97
16 81

150
22 74 54

Corporate & other


54 Distribution Energy mgmt. Total

Corporate & Procurement Generation other

(1) It only refers to fuel procurement


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Synergy levers
Corporate, general services, IT, R&D
EBITDA Synergies: 457 M Year 1: 29% Year 3: 81% Year 5: 100%

84 mn

Generation Distribution Fuel, Energy management

123 mn

156 mn 94 mn

IT, R&D
CAPEX Synergies: 223 M Year 3: 64% Year 5: 100%

66 mn

Procurements

97 mn

Distribution

60 mn

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Potential upside under analysis 1


Potential upsides not in current synergies Centralization of services procurement (vg. Maintenance) Further integration of operations and applications

Corporate, IT, R&D:

Procurement

Further potential from enlargement of procurement base

Generation

O&M optimization

Distribution

Performance improvement and best practice sharing in LatAm

Energy mgmt.

Growth of trading activities in Europe Joint upstream projects development

Other

Optimization of Engineering and EPC activities

(1) Pending to be quantified. To be disclosed within Endesas new strategic plan

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Agenda

Transaction rationale Synergies Conclusions

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Conclusions
Synergy Plan approved Detailed implementation of Synergy Plan initiated Potential upside to Synergy Plan under analysis Asset disposal process on execution phase Renewable energies combination with Acciona Energa initiated New Endesa Business Plan by 1Q 2008 Endesas current financial capacity further enhanced post asset disposal to accelerate growth

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