GLOBAL ICT PROJECTS IN ENEL Enel International ICT

1. GLOBAL ICT PROJECTS IN ENELEnel International ICT • SOFIA, 28 May 2008 • Mr. Carlo Scappini

2. Agenda • Enel’s Mission • International Overview • ICT strategies • International ICT • Global projects in Enel

3. Enel’s Mission • Our Mission is to create and distribute value • in the international energy market, • to the benefit of our customers’ needs, • our shareholders’ investment, • the competitiveness of the countries in which we operate • and the expectations of all those who work with us. • We serve the community, respecting the environment • and the safety of individuals, • with a commitment to creating a better world • for future generations

4. International Overview

5. ICT Strategy Preliminary remarks • ICT plan 2008-2012 incorporates “ICT strategies 2008-2012” • ICT Department, in accordance with the strategical clues ICT Core, ICT Business and International ICT, presents the strategical prospects and the main initiatives planned for 2008-2012. • The formulation of the plan is based on the initiatives on business and cross country systems • The perimeter of the initiatives don’t include all the sinergy actions in joint with Endesa • The organizational and corporative changes in the last six months determine some adjustments to the ICT strategy and projects

6. ICT Strategy Approach • The strategy ICT, emphatizes as external factors the characterization of the business Energy & Utility and of the ICT sector, and as endogenous factors the strategy of Enel business and the snapshot of the Enel ICT context nowdays. Based on such orientations the ICT strategy develops as it follows: • ICT Core strategy, directed ICT to the strengthening of the structure of the Operations • ICT Business and International ICT strategies, direct to support the whole “weawing factory” of the business and of the process of internazionalization in Enel. • To support such strategic orientations the ICT answers with a whole strategic projects and initiatives articulated in: • ICT Core initiatives • ICT Internationalinitiatives • ICT Business initiatives External Environment Internal Environment Energy & Utility Market Enel Strategy ICT Objectives ICT Sector ICT Strategy ENEL ICT Context ICT International initiative ICT Core initiative ICT Business Initiative

7. ICT Strategy Roadmap Business Driver ICT Driver • M&A • Liberalization of national market • Unbundling Distribution and Market • Competition • Innovation • Operational Excellence • Cost Saving ICT Enel objectives ENEL ICT main objective is to improve and assure excellent performance levels in operational management ICT has simultaneously to: • To bring forth projects of continuous improvement faces to the attainment of the operational excellence • To invest in the reliability and flexibility of the systems and in the quality of the delivery • To give a contribution in terms of innovation (of products, processes, technologies). ICT Strategy ICT Business: ICT Strategy to support the business ICT Core: ICT strategy for governance and management Internazional ICT : ICT strategy for Enel international environment AS-IS ICT Core initiative ICT Business initiative ICT International initiative ICT GAP Business Needs / Expected Benefit

8. International ICT Guidelines • Becoming a multinational company inevitably brings some changes in perspectives on how ICT can support the business and the organization itself, in term of: • Governance • Local autonomy • Costs • Synergies • Based on the above key points, and taking on business requirements, it was developed an ICT strategy using a building construction model. • In this view, the foundations are represented by the construction of common integration layer on : • Infrastructures • Applications • Procedure & Process

9. International ICT Application Integration Assessment Set up Priorities Finalize the Master Plan of evolution 1 2 3 Assessment Criteria: • Adequacy of Process implemented in the Applications • Comparison with Italian Processes / Applications and Best Practices • Business expectation in the country • Local peculiarities (processes, regulatory) • Analyze Supplier, Contracts, internal Knowledge, costs • Evaluate application technologies Criteria: • Privileging convergence to Enel Italy reference process model and applications • When not appropriate privilege a Solution sharable among countries, push synergies • When required by operation urgency or regulatory deadlines, use thestopgap approach: reinforce current solution waiting for final step • Always consider with care change management • Involve ICT local personnel by training-on-the-job Topics: • Consolidate the tools supporting Infrastructural Processes- Administration & Finance- Purchase- Material Management • Guarantee compliance with Regulatory • Support Business Operations • Contribute to prepare Plans for the Delivery of Systems able to support the Business approach to the market Involving AFC, AA, Countries/ International Division

10. International ICT Infrastucture Integration Assessment Set up Priorities Finalize the Master Plan of evolution 1 2 3 Assessment Scope: • TELCO: lines, equipment, circuits, contracts and supplies. • Security: architecture, technology adequacy, equipments and configurations, policies. • E-mail, E-mail Directory, E-Agenda, Document Management Systems • Enterprise Portal, Company Site • Mobile, Voice, printers, copiers Criteria: • Understand involvement in any (nuclear or other) emergency team • Internal Knowledge • Quality and Cost • Distance from Enel Security Guidelines • New bandwidth requests Criteria: • Design and plan International WAN • Introduce remote infrastructure and security management • Common videoconference equipments • Finalize International Sites security guidelines. • Set-up prerequisites for broadcasting applications (web TV, web radio….) • Rationalize fixed and mobile phone costs (i.e.. Voip, global intl operator…) • Apply CS optimizations, processes and projects • Extend Enel ICT services • In sourcing vs. outsourcing Topics: • Support the Interim Management team with connection to the Enel Enterprise common tools • Isolate the incoming company from the previous connections • Securely connect the incoming company to Enel network. • Secure previous connections • Support Security Audit • Integrate e-mail / e-agenda systems • Support Enterprise Portal and Company web Sites porting to Enel Common Identity and Tools Involving Security Holding, Communication, Countries/ International Division

11. International ICT Procedure & Process Integration Assessment Set up Priorities Finalize the Master Plan of evolution 1 2 3 Assessment Scope: • Current procedures reflected in the current organization with the purpose to understand the change impact Criteria: • Usage of InEnel Portal to set up the common knowledge Management Base for procedure and processes • Budget, rolling forecast + Project reporting • Test in one country and then move to the others • Always check for local economic advantage as well Topics: Whatever concerning SOA: • Security • User profiles • COBIT rules Whatever concerning economic controls: • Bubget/Plan • capex and opex monthly rolling forecast Inter company contract Planning best practice • Customer service processes • Operation processes • Contracts with 3rd party suppliers • Demand processes Involving ICT (Planning&Control, ICT Governance, Customer Service, Operations)

12. International ICT ICT actions • Integration • Homogeneus processes • Global Services • Business • Leonardo • EGLIP • Tecnology • WISE • Organization Teams • International Team • Competence Center • Federative Governance Policies&procedures • Security • Standards • Procurement Support • 24x7 Customer Service • NOC & SOC • Help Desk

13. International ICT Main International ICT Initiatives Main Projects per Country Russia: • OGK5 Integration Slovacchia: • WISE ERP Localization • HR Global Localization • WISE Nuclear Romania: • WISE ERP Localization • HR Global Localization • CRM Cross Country Projects Integration of the processes and synergies: • WISE ERP, HR Global Baseline • Generation units International Enel Monitoring System • Global sourcing ICT federative governance: • Redaction and procedure delivery: • ICT Strategical Planning • Architectural and Innovative standard • Monitoring ICT initiatives • Assurance of the architectural and technological standards Global Access to common services : • Leonard fase 2 • Global inEnel – Enel worldwide intranet • Enel Global Infrastructure Program Specialized presidium of ICT global escellence: • Development of excellence/knowledge poles

14. Global Projects in ENEL SAP WISE (1/2) • Description • WISE (Worldwide Innovative SAP Environment), has the objective to implement an unique international SAP system to support the infrastructural and operational processes of the International Division companies based on the mySAP.ERP enterprise. • The strategy of SAP international outlines the Baseline as the first phase. The Baseline will be represented by a "kernel" that collects as many elements and factors as possible that the countries have in common for localization. • The Change Management team will be the owner of the WISE Program. They will manage all aspects of change, concentrating on added value activities with respect to business processes, evaluate the resources and methodology that optimizes the work processes.

15. Global Projects in ENEL SAP WISE (2/2) • Approach • Phase 1: Baseline The objectives are to define the processes that will function as references for all the business units of the International Division, and to implement and illustrate them on the SAP Help files and to outline the strategy and communication plan for training.During this phase, gap-analysis and analysis of the interaction between the cross-organizational processes in the information system is performed. The scope will be to identify the programs that will interface with the remaining systems in use with the new system. • Phase 2: Localization; the objective is to create the current model outlined above in the Baseline phase for the different international localizations.This phase includes process redesign; SAP will manage this operating in the respective environment, the adaptations (language, government regulations and compliance,currency.)The activation of the interfaces with the new system includes the controls to allow for data migration before the Go-Live. • Goals and Benefits • SAP Wise will facilitate integration through International Division by sharing procedures and values, • SAP Wise will create a common language channeled through information technology systems • SAP Wise will increase the level of governance and guidelines while keeping local country autonomy

16. Global Projects in ENEL Leonardo (1/2) • Description • Two dedicated leased lines per country HUB ending one in Milan and one in Rome. • Country HUB location selected within the most populated premises. • Star topology with the center in Italy and satellites sisters companies. • Cross-country communication availability. • Internal countries networks not in scope in the current planned project’s phases. • Unique signed contract with a single provider. • Leonardo is part one of the essential project to be added to the new company integration process (i.e. OGK5) • Approach • Phase 1 central infrastructure creation and connectivity provision for Slovakia, Romania, Bulgaria, ENA, ELA. • Phase 2 addition of France, Russia, Greece in to the perimeter. • Phase 3 Voice over IP Implementation – (Not planned yet)

17. Global Projects in ENEL Leonardo (2/2) • Goals and Benefits • Alignment of network backbone service levels throughout the Enel corporation. • Building of the foundations through which provide other IT central services • Prerequisite for a possible extended use of audio and video services. • Extension of the telecom and security governance to a more corporate level perspective. • Unique contract approach brought economic and administrative benefits. • Introduction of traffic priority mechanism to ensure proper response time to business critical services. • Possibility to provide limited sister’s country services to the rest of the Enel group. • Standardization of telecom technology • Required for possible competence centers creation outside Italy.

18. Global Projects in ENEL EGLIP - Enel Global Infrastructure Program (1/2) • Description • Creation of a new common IT environment from where current global services (email, collaborative tools, global address book, InEnel…) and future ones will be delivered. • Development of minimum security policy and ICT guidelines to be adopted from all sister companies. • Introduction of collaboration tools: instant messaging, audio and video conferencing from desktop. Their diffusion within the countries will be as high as local network can afford. • Standardization of email domain to @enel.com for all the corporation. • Application of the same security controls for incoming/outgoing internet email global-wide. • Approach • Phase 1: Baseline, central development, guidelines and policy definition and go-live for Italy and Slovakia. • Phase 2: Planning and implementation of other countries adjustment activities to adhere to guidelines and to join the central infrastructure.

19. Global Projects in ENEL EGLIP - Enel Global Infrastructure Program (2/2) • Goals and Benefits • Usage of own home resources from everywhere in the corporation in an off-support way (plug & go). • Harmonization of email domains – one company one global domain. • Improvement in email security inside the corporation. • Improvement of IT governance and guidelines while keeping local country autonomy. • Creation of shared data storage areas. • Introduction of collaborative tools to improve team-working and decreasing travel costs. • Improvement in WEB global-wide application delivering and usage. • Strategic to move the focus out from Italy-centric vision.

20. Global Projects in ENEL ENEL Global InEnel • Description • Defining a new intranet site, based on best practices from Enel, in each Country, promoting a shared identity within Enel and promoting knowledge and know how exchange • Supporting Enel organisation in growth in its new role as an energy multinational company • Approach • New “look & feel” in “same” InEnel portal architecture, developing communication process in term of : • publishing plane (what to say) • web identity (how to say) • content management (who feeds news) • Goals and Benefits • Saves time and money, better information faster, through : • Information publishing: using the intranet to deliver news and other information in the form of directories and web documents. • Document management: using the intranet to allow users to view, print and work collaboratively on office documents (word-processed documents, spreadsheets, presentations, etc.). • Workflow: using the intranet to automate administrative processes. • Databases systems: using the intranet as a front-end to organisation-specific systems, such as corporate databases. • Discussion: using the intranet as a means for users to discuss and debate issues.

21. Global Projects in ENEL • THANK YOU • FOR YOUR ATTENTION