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 Enel SpA and presented in the consolidated and separate financial statements, respectively. These reclassified schedules contain different performance indicators from those obtained directly from the consolidated 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 of our business.
With regard to those indicators, on December 3, 2015, CONSOB issued Communication no. 92543/2015, which gives force to the Guidelines issued on October 5, 2015, by the European Securities and Markets Authority (ESMA) concerning the presentation of alternative performance measures in regulated information disclosed or prospectuses published as from July 3, 2016. These Guidelines, which update the previous CESR Recommendation (CESR/05-178b), 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. Accordingly, 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 new Ownership and Stewardship business models. 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 new Ownership and Stewardship business models.
It is calculated by adjusting “Operating profit” for the effects of transactions not connected with core operations referred to with regard to the gross operating profit and excluding significant impairment losses on assets and/or groups of assets following impairment testing (including reversals or 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 new Ownership and Stewardship business models.
It is equal to “Group profit” adjusted primarily for 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, Infrastructure and Networks, Enel X and End-user Markets (excluding gas).
Gross global value added from continuing operations: this is defined as value created for stakeholders and is equal to “Revenue”, including “Net income/(expense) from commodity management” net of external costs defined as the algebraic sum of “cost of fuels”, “cost of electricity purchases”, “costs of materials”, “capitalized costs of internal projects”, “other costs” and “costs for services, rentals and leases”, with the latter net of “costs for fixed water diversion fees” and “costs for public land usage fees”.
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 borrowings” 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 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” and “Short-term borrowings and the current portion of long-term borrowings”, taking account of “Short-term financial borrowings” included in “Other current liabilities”;
- net of “Cash and cash equivalents”;
- net of the “Current portion of long-term loan assets”, “Factoring receivables”, “Cash collateral” and “Other financial assets” included in “Other current financial assets”;
- net of “Securities” and “Other financial assets” included in “Other non-current financial assets”.
More generally, the net financial debt of the Enel Group is calculated in accordance with paragraph 127 of Recommendation CESR/05-054b implementing Regulation (EC) no. 809/2004 and in line with the CONSOB instructions of July 28, 2006, net of financial assets and long-term securities.
Main changes in the consolidation scope
In the two periods under review, the consolidation scope changed as a result of a number of transactions. For more information, please see note 7 of the consolidated financial statements.
The following presents the operating, environmental and financial performance of the Group