These strategic priorities will ensure continued growth of operational performance while maintaining a strong financial position.

1) Leadership in key markets

The Enel Group intends to strengthen its leadership position in Italy and Iberia as a fully integrated operator along the entire value chain.
Specifically, in the Italian market the Enel Group will focus on improving the quality and competitiveness of its energy mix. To achieve this goal, investment will be focused on the clean coal conversion of the Porto Tolle plant (Rovigo) and the construction of a regasification terminal at Porto Empedocle (Agrigento).
In Iberia, the Enel Group will focus mainly on the development of pumped-storage hydroelectric plants and the completion of projects to boost the efficiency and capacity of existing plants, which, together with the construction of infrastructure in the gas transport sector (Medgaz), will give Endesa a well-balanced energy mix, capable of maintaining solid margins over the timescale of the plan.
In both Italy and Iberia, the Enel Group will continue to make investments in high value-added services such as digital meters (in Spain) and smart grids, as well as integrated gas and electricity plans to enhance the quality of our relationship with customers.
Overall, the Enel Group is expecting to invest about 18 billion euros in Italy and Iberia over the five years of the plan.

2) Strengthened position and organic growth in the renewables sector and in Latin America, Russia and Eastern Europe

In the field of renewable energy, Enel Green Power will continue to be a unique global player with a diversified technology mix and geographical presence due to its modest dependence on revenues from subsidies and the ability to generate strong, steadily growing cash flows. Over the course of the plan timeframe, Enel Green Power expects to invest 6.4 billion euros (of which 2.4 billion will be in Italy and Iberia and the rest in the other countries in which it operates). The Enel Group will also increase net installed capacity from the current 6.1 GW to 10.4 GW and will increase EBITDA to 2 billion euros in 2013 and 2.4 billion euros in 2015. All of this will be achieved while maintaining a dividend payout of at least 30%.
In Latin America, the economies of the various countries in which the Enel Group operates remain sound with energy demand growing rapidly. In this favourable environment, combined with a clear and stable regulatory framework, the Enel Group will continue to leverage its leadership position, generating growing margins supported by total investments of an estimated 4.8 billion euros over the period covered by the plan, which will be focused primarily on organic growth in power generation and distribution. Notably, the Enel Group will invest, among other projects, in the development of the Bocamina II coal-fired plant in Chile (370 MW, fully operational by 1Q 2012) and the El Quimbo hydroelectric plant in Colombia (400 MW, partially operational by the end of 2014).
The Russian economy is expected to continue to grow and has promising market fundamentals. Against this backdrop, the Enel Group's strategic role in the country will be strengthened.
Overall, the Enel Group is expected to invest nearly 1 billion euros in Russia over the five years of the plan, mainly to improve the quality of its generation mix, with the construction of a new 800 MW combined-cycle plant, which will be supplied with competitively priced gas from the Group's interest in the Severenergia gas fields. The Enel Group will also continue to invest in strengthening the overall efficiency and optimisation processes of its own plants.
Slovakia remains a strategic area for the Group. Overall, the Enel Group will invest an estimated 2.7 billion euros in the country over the five years of the plan, mainly towards the completion of units 3 and 4 of the Mochovce nuclear power plant which will ensure further generation capacity of 880 MW. The first unit will be operational by 2012 and the second during 2013.
Finally, in Romania, the Enel Group expects to invest around 800 million euros over the plan time horizon, primarily in strengthening efficiency processes and initiatives to expand the customer base.
Summing up, between 2011 and 2015, the Enel Group plans to undertake investments of an estimated 31 billion euros.

3) Consolidation, integration and operational efficiency

During the course of the period covered by the plan, the integration programme with Endesa will continue, achieving further operational synergies. In 2010 Enel and Endesa achieved overall synergies of a total 886 million euros, in addition to the effects of Endesa's Zenith programme (108 million euros), bringing the total value of synergies created in 2010 to 994
million euros (equal to an overall increase of 45% higher than the original target indicated to the market). Consequently, the Enel Group has increased its target for overall synergies in 2012 to about 1.3 billion euros.
The Enel Group has also made steady progress in the Zenith programme, which is designed to improve margins and optimise working capital and investments. More specifically, initiatives under the programme have achieved total cumulative savings of around 2.7 billion euros since 2009. This performance has prompted the Enel Group to set a new target for 2009-2011 of 3.5 billion euros, about 30% more than the target originally announced to the market.

4) Leadership in innovation

The Enel Group is committed to investing about 1 billion euros gross of grants and loans to develop CO2 capture and storage technology, clean coal power plants, hydrogen-fuelled plants such as the one at Fusina (Venice), thermal solar technology, such as the one implemented at the Archimedes plant in Priolo (Siracusa), digital meters in Spain and Latin America, smart grids, smart cities projects, and electric mobility.