35. Equity - €42,357 million

35.1 Equity attributable to owners of the Parent - 28,325 million

Share capital - €10,167 million

At December 31, 2020, the fully subscribed and paid-up share capital of Enel SpA totaled €10,166,679,946, represented by the same number of ordinary shares with a par value of €1.00 each.

The share capital is unchanged compared with the amount reported at December 31, 2019.

At December 31, 2020, based on the shareholders register and the notices submitted to CONSOB and received by the Parent pursuant to Article 120 of Legislative Decree 58 of February 24, 1998, as well as other available information, shareholders with interests of greater than 3% in the Parents’s share capital were the Ministry for the Economy and Finance (with a 23.585% stake), BlackRock Inc. (with a 5.081% stake held for asset management purposes) and Capital Research and Management Company (with a 5.029% stake held for asset management purposes).

Treasury share reserve - €(3) million

As at December 31, 2020, treasury shares are represented by 3,269,152 ordinary shares of Enel SpA with a par value of €1.00 each (1,549,152 at December 31, 2019), purchased through a qualified intermediary for a total amount of €23 million. The difference between the amount paid and the par value is recognized as a reduction in equity in the share premium reserve.

Other reserves - (39) million

Share premium reserve - €7,476 million

Pursuant to Article 2431 of the Italian Civil Code, the share premium reserve contains, in the case of the issue of shares at a price above par, the difference between the issue price of the shares and their par value, including those resulting from conversion from bonds. The reserve, which is a capital reserve, may not be distributed until the legal reserve has reached the threshold established under Article 2430 of the Italian Civil Code. The change of €11 million for the year reflects the purchase of treasury shares supporting the 2020 LTI Plan.

Reserve for equity instruments - perpetual hybrid bonds - €2,386 million

This reserve was established with the subscription of a perpetual hybrid bond in an amount, net of transaction costs, of €592 million and with the conversion of bonds already in issue and converted into perpetual hybrid bonds in the amount, net of transaction costs, of €1,794 million.

Legal reserve - €2,034 million

The legal reserve is formed of the part of profits that, pursuant to Article 2430 of the Italian Civil Code, cannot be distributed as dividends.

Other reserves - €2,268 million

These include €2,215 million related to the remaining portion of the adjustments carried out when Enel was transformed from a public entity to a joint-stock company.

Pursuant to Article 47 of the Consolidated Income Tax Code (Testo Unico Imposte sul Reddito, or “TUIR”), this amount does not constitute taxable income when distributed.

Translation reserve - €(7,046) million

The decrease for the year, of €3,244 million, was mainly due to the net appreciation of the euro against the foreign currencies used by subsidiaries and the change in the consolidation scope connected with the purchase of 5.03% of Enel Américas and 2.89% of Enel Chile.

Hedging reserve - €(1,917) million

This includes the net expense recognized in equity from the measurement of cash flow hedge derivatives. The cumulative tax effect is equal to €305 million.

Hedging costs reserve - €(242) million

In application of IFRS 9, these reserves include the fair value gains and losses on currency basis points and forward points. The cumulative tax effect is equal to €5 million.

Reserve from measurement of financial instruments at FVOCI - €(1) million

This includes net unrealized fair value losses on financial assets.

The cumulative tax effect is equal to a negative €2 million.

Reserve from equity-accounted investments - €(128) million

The reserve reports the share of comprehensive income to be recognized directly in equity of equity-accounted investees. The cumulative tax effect is equal to €26 million.

Actuarial reserve - €(1,196) million

This reserve includes all actuarial gains and losses, net of tax effects. The change is mainly attributable to the decrease in net actuarial losses recognized during the year, mainly reflecting changes in the discount rate, and to the reclassification following the curtailment of a number of defined benefit plans following the signing of the 5th Endesa Collective Bargaining Agreement. The cumulative tax effect is equal to €329 million.

Reserve from disposal of equity interests without loss of control - €(2,381) million

This item mainly reports:

  • the gain posted on the public offering of Enel Green Power shares, net of expenses associated with the disposal and the related taxation;
  • the sale of non-controlling interests recognized as a result of the Enersis (now Enel Américas and Enel Chile) capital increase;
  • the capital loss, net of expenses associated with the disposal and the related taxation, from the public offering of 21.92% of Endesa;
  • the income from the disposal of the non-controlling interest in Enel Green Power North America Renewable Energy Partners;
  • the effects of the merger into Enel Américas of Endesa Américas and Chilectra Américas;
  • the disposal to third parties of a non-controlling interest without loss of control in Enel Green Power North America Renewable Energy Partners and a number of companies in South Africa.

The reserve did not change in 2020.

Reserve from acquisitions of non-controlling interests - €(1,292) million

This reserve mainly includes the surplus of acquisition prices with respect to the carrying amount of the equity acquired following the acquisition from third parties of further interests in companies already controlled in Latin America and in Italy (Enel Green Power SpA).

The change for the year mainly reflects the effects of the increase of 5.03% in the interest held in Enel Américas and of 2.89% in that held in Enel Chile, bringing the overall stakes to 65% and 64.93%, respectively.

Retained earnings - 18,200 million

This reserve reports earnings from previous years that have not been distributed or allocated to other reserves.

The table below shows the changes in gains and losses recognized directly in other comprehensive income, including non-controlling interests, with specific reporting of the related tax effects.

Millions of euro                      
  at Dec. 31, 2019 Change at Dec. 31, 2020
  Total Of which owners of the Parent Of which non-controlling interests Gains/(Losses) recognized in equity during the year Released to profit or loss Taxes Total Of which owners of the Parent Of which non-controlling interests Total Of which owners of the Parent Of which non-controlling interests
Translation reserve (7,190) (3,471) (3,719) (4,510) - - (4,510) (2,987) (1,523) (11,700) (6,458) (5,242)
Hedging reserve (1,968) (1,627) (341) (2,121) 2,003 (150) (268) (294) 26 (2,236) (1,921) (315)
Hedging costs reserve (145) (147) 2 (91) (6) (2) (99) (95) (4) (244) (242) (2)
Reserve from measurement of financial instruments at FVOCI 1 2 (1) 1 (3) 1 (1) (1) - - 1 (1)
Share of OCI of equity-accounted associates (166) (168) 2 (10) - 1 (9) (9) - (175) (177) 2
Reserve from measurement of equity investments in other companies (11) (11) - (21) - - (21) (21) - (32) (32) -
Actuarial reserve (1,475) (1,045) (430) (516) - 163 (353) (231) (122) (1,828) (1,276) (552)
Total gains/(losses) recognized in equity (10,954) (6,467) (4,487) (7,268) 1,994 13 (5,261) (3,638) (1,623) (16,215) (10,105) (6,110)

35.2 Dividends

  Amount distributed
(millions of euro)
Dividend per share
(euro)
Dividends paid in 2019    
Dividends for 2018 2,847 0.28 
Interim dividends for 2019(1) - -
Special dividends - -
Total dividend paid in 2019 2,847 0.28 
Dividends paid in 2020    
Dividends for 2019 3,334 0.33 
Interim dividends for 2020(2) - -
Special dividends - -
Total dividend paid in 2020 3,334 0.33 

(1) Approved by the Board of Directors on November 12, 2019, and paid as from January 22, 2020 (interim dividend of €0.16 per share for a total of €1,627 million).
(2) Approved by the Board of Directors on November 5, 2020, and paid as from January 20, 2021 (interim dividend of €0.175 per share for a total of €1,779 million).

The dividend for 2020 is equal to €0.358 per share, for a total amount of €3,640 million (of which €0.175 per share, for a total of €1,779 million, already paid as an interim dividend as from January 20, 2021) and was approved by the Shareholders’ Meeting of May 20, 2021 at single call. These consolidated financial statements do not take account of the effects of the distribution to shareholders of the dividend for 2020, except for the liability in respect of shareholders for the interim dividend for 2020 dividend, which was approved by the Board of Directors on November 5, 2020 for a potential maximum of €1,779 million, and paid as from January 20, 2021 net of the portion pertaining to the 3,269,152 million treasury shares held as at the record date of January 19, 2021.

Capital management

The Group’s objectives for managing capital comprise safeguarding the business as a going concern, creating value for stakeholders and supporting the development of the Group. In particular, the Group seeks to maintain an adequate capitalization that enables it to achieve a satisfactory return for shareholders and ensure access to external sources of financing, in part by maintaining an adequate rating.

In this context, the Group manages its capital structure and adjusts that structure when changes in economic conditions so require. There were no substantive changes in objectives, policies or processes in 2020.

To this end, the Group constantly monitors developments in the level of its debt in relation to equity. The situation at December 31, 2020 and 2019, is summarized in the following table.

Millions of euro    
  at Dec. 31, 2020 at Dec. 31, 2019 Change
Non-current financial debt 49,519 54,174 (4,655)
Net current financial position (1,359) (5,814) 4,455
Non-current financial assets and long-term securities (2,745) (3,185) 440
Net financial debt 45,415 45,175 240
Equity attributable to owners of the Parent 28,325 30,377 (2,052)
Non-controlling interests 14,032 16,561 (2,529)
Equity 42,357 46,938 (4,581)
Debt/equity ratio 1.07 0.96 -


The percentage increase in the debt ratio is attributable to the decrease in equity, essentially reflecting adverse exchange rate developments, and the increase in net financial debt, mainly reflecting the funding requirements of investments in the year, the payment of dividends and extraordinary transactions in non-controlling interests connected with the acquisition of additional interests in Enel Américas and Enel Chile.

See note 43 for a breakdown of the individual items in the table.

35.3 Non-controlling interests - €14,032 million

The following table presents the composition of non-controlling interests by geographic area.

Millions of euro Non-controlling interests Profit for the year attributable to non-controlling interests
  at Dec. 31, 2020 at Dec. 31, 2019 at Dec. 31, 2020 at Dec. 31, 2019
Italy 2 1 - (2)
Iberia 5,869 5,961 468 36
Latin America 7,206 9,277 477 1,256
Europe 638 903 55 6
North America 160 222 6 (1)
Africa, Asia and Oceania 157 197 6 7
Total 14,032 16,561 1,012 1,302


The decrease in the portion attributable to non-controlling interests mainly reflects exchange rate effects, dividends and the increase in the percentage holding in Enel Américas and Enel Chile.