On April 8, 2016, the Enel Group adopted a new organizational structure, partly in relation to the integration of Enel Green Power. More specifically, the main organizational changes include:
- the reorganization of the Group’s geographical presence, with a focus on the countries that represent new business opportunities around the world and in which the Group’s presence was established through Enel Green Power. The Group has therefore shifted from a matrix of four geographical areas to one with six such areas. The structure retains the Country “Italy” and the areas “Iberia” and “Latin America”, while the Eastern Europe area has been expanded into the “Europe and North Africa” area. Two new geographical areas have also been created: “North and Central America” and “Sub-Saharan Africa and Asia”. These six areas will continue to maintain a presence and integrate businesses at the local level, seeking to foster the development of all segments of the value chain. At the geographical level, in countries in which the Group operates in both the conventional and renewable generation businesses, the position of Country Manager will be unified;
- the convergence of the entire hydroelectric business within the Renewable Energy business line;
- the integrated management of dispatching of all renewable and thermal generation plants by Energy Management at the Country level in accordance with the guidelines established by the Global Trading Divisi.
More specifically, the new Enel Group structure is organized, like the previous one, into a matrix that comprises:
- Divisions (Global Thermal Generation, Global Trading, Global Infrastructure and Networks, Renewable Energy), which are responsible for managing and developing assets, optimizing their performance and the return on capital employed in the various geographical areas in which the Group operates. The Divisions are also tasked with improving the efficiency of the processes they manage and sharing best practices at the global level. The Group can benefit from a centralized industrial vision of projects in the various business areas. Each project will be assessed not only on the basis of its financial return, but also on the basis of the best technologies available at the Group level. On September 12, 2016, following the positive experience of Enel OpEn Fiber in Italy, Enel created a new global business unit within the Global Infrastructure and Networks business line, responsible for managing this new strategic line of business in Italy and around the world. The new business unit, Global Fiber Optic Infrastructures, has the mission of developing strategies and business models for the development of fiber optic infrastructure by the Group at the global level;
- Regions and Countries (Italy, Iberia, Latin America, Europe and North Africa, North and Central America, Sub-Saharan Africa and Asia), which are responsible for managing relationships with institutional bodies and regulatory authorities, as well as selling electricity and gas, in each of the countries in which the Group is present, while also providing staff and other service support to the Divisions.
The following functions provide support to Enel’s business operations:
- global service functions (Procurement and ICT), which are responsible for managing information and communication technology activities and procurement at the Group level;
- holding company functions (Administration, Finance and Control, Human Resources and Organization, Communications,Legal and Corporate Affairs, Audit, European Affairs, and Innovation and Sustainability), which are responsible for managing governance processes at the Group level.
The new organizational structure modifies the structure of reporting, the analysis of the Group’s performance and financial position and, accordingly, the representation of consolidated results as from September 30, 2016. Consequently, in this consolidated financial report, the results by business segment are discussed on the basis of the new organizational arrangements and taking account of the provision of IFRS 8 with regard to the “management approach”. Similarly, the figures for 2015 have been restated appropriately for comparative purposes.