In order to present the results of the Group and the Parent and analyze their financial structure, Enel has prepared separate reclassified schedules that differ from the schedules envisaged under the IFRS-EU adopted by the Group and by Enel SpA and contained in the consolidated financial statements and separate financial statements, respectively. These reclassified schedules contain different performance indicators from those obtained directly from the consolidated financial statements and separate financial statements, which management believes are useful in monitoring the performance of the Group and the Parent and representative of the financial performance and position of our business.
With regard to those indicators, on April 29, 2021, CONSOB issued warning notice no. 5/2021, which gives force to the Guidelines issued on March 4, 2021, by the European Securities and Markets Authority (ESMA) on disclosure requirements under Regulation (EU) 2017/1129 (the Prospectus Regulation), which took effect on May 5, 2021 and replace the references to the CESR Recommendations and those contained in Communication no. DEM/6064293 of July 28, 2006 regarding the net financial position. The Guidelines update the previous CESR Recommendations (ESMA/2013/319, in the revised version of March 20, 2013) with the exception of those concerning the special issuers referred to in Annex no. 29 of Delegated Regulation (EU) 2019/980, which were not converted into Guidelines and remain applicable.
The 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 regulations cited above, the criteria used to construct these indicators are the following.
Gross operating profit: an operating performance indicator, calculated as “Operating profit” plus “Depreciation, amortization and impairment losses”.
Ordinary gross operating profit: defined as “Gross operating profit” from core businesses connected with the Ownership and Stewardship business models plus the ordinary gross operating profit of discontinued operations. It does not include costs connected with corporate restructurings and costs directly attributable to the COVID-19 pandemic.
Ordinary operating profit: defined as “Operating profit” from core businesses connected with the Ownership and Stewardship business models plus the ordinary operating profit of discontinued operations. It is calculated by adjusting “Operating profit” for the effects of transactions not connected with core operations referred to with regard to ordinary gross operating profit and excluding significant impairment losses on assets and/ or groups of assets following impairment testing (including reversals of impairment losses) or classification under “Assets held for sale”.
Group ordinary profit: it is defined as “Group profit” generated by Enel’s core business connected with the Ownership and Stewardship business models.
It is equal to “Group profit” adjusted primarily by the solidarity tax on energy companies for 2022 provided for under Law 51 of May 20, 2022 and the solidarity tax provided for by Law 197 of December 29, 2022, as well as the items discussed under “Ordinary operating profit”, net of any tax effects and non-controlling interests.
Low-carbon ordinary EBITDA: it is the ordinary gross operating profit of the set of products, services and technologies included in the following business lines: Enel Green Power, Enel Grids, Enel X and End-user Markets (excluding gas).
Net non-current assets: calculated as the difference between “Non-current assets” and “Non-current liabilities” with the exception of:
- "Deferred tax assets”;
- “Securities” and “Other financial assets” included in “Other non-current financial assets”;
- “Long-term borrowings”;
- “Employee benefits”;
- “Provisions for risks and charges (non-current portion)”;
- “Deferred tax liabilities”.
Net working capital: calculated as the difference between “Current assets” and “Current liabilities” with the exception of:
- “Current portion of long-term loan assets”, “Factoring receivables”, “Securities”, “Cash collateral” and “Other financial assets” included in “Other current financial assets”;
- “Cash and cash equivalents”;
- “Short-term borrowings” and the “Current portion of long-term borrowings”;
- “Provisions for risks and charges (current portion)”;
- “Other financial liabilities” included in “Other current liabilities”.
Net assets held for sale: calculated as the algebraic sum of “Assets held for sale” and “Liabilities included in disposal groups classified as held for sale”.
Net capital employed: calculated as the sum of “Net non-current assets” and “Net current assets”, “Provisions for risks and charges”, “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 borrowings”, “Short-term borrowings” and “Current portion of long-term borrowings”, taking account of “Long- and short-term financial borrowings” included respectively in “Other non-current financial liabilities” and “Other current financial liabilities”;
- net of “Cash and cash equivalents”;
- net of the “Current portion of long-term loan assets”, “Current securities” and “Other financial assets” included in “Other current financial assets”;
- net of “Non-current securities” and “Non-current financial assets” included in “Other non-current financial assets”;
- net of “Cash flow hedge derivative assets on exchange rates connected to loans” and “Fair value hedge derivative assets on exchange rates connected to loans”;
- “Cash flow hedge derivative liabilities on exchange rates connected to loans” and “Fair value hedge derivative liabilities on exchange rates connected to loans".
More generally, the net financial debt of the Enel Group is reported in accordance with Guideline 39, issued on March 4, 2021 by ESMA, applicable as from May 5, 2021, and with the above warning notice no. 5/2021 issued by CONSOB on April 29, 2021.