2011-2013 INDUSTRIAL PLAN APPROVED 

The projects pipeline has doubled: more than 330 MWp of capacity to be installed in the period 2011-2013
 
·         Power generation activity expected to boost through joint-venture and full equity
·         EPC activity expected to increase and reach the target of an installed capacity amounting to 172 MWp in the three year period 
·         In 2012 entry into “Energy Saving” and “Mini-hydro” businesses
·         2013 Target revenues set at Euro 195 million 
·         2013 EBITDA target set at Euro 28.5 million 
·         The Board of Directors shall submit for approval the distribution of 2010 dividend, with a pay-out ratio ranging between 40% and 45%
 
 
Terni, February 28th, 2011

Today the Board of Directors of TerniEnergia S.p.A., a company operating in the renewable energy sector and listed on Star segment of Borsa Italiana, approved the 2011-2013 strategic plan:

Stefano Neri, TerniEnergia’s Chairman and Managing Director, stated as follows:
During the year just ended our Group showed to have exceeded the set targets and to have obtained very significant results which led us updating the estimates that had been announced at the end of 2009. The 2011-2013 strategic plan is aimed at pursuing the growth track and strengthen the business diversification, focusing more and more on power generation activity that gained an increasing weight in the course of time inside the Group. According to the new industrial plan, in the period 2011-203 a capacity of further 330 MWp is expected to be installed, through the construction of plants both in JV and in Full Equity, and EPC activity is also confirmed. In light of the above, we will double the objectives that we announced in the previous industrial plan, keeping under control financial soundness. Notably, in the power generation segment, we expect to install a power exceeding 50% of the total in the next three year period. We have raised also our economic targets and expect to exceed Euro 190 million turnover in  2011, and this would confirm our significant growth rate, in the wake of a positive trend that has been going on since the Company’s incorporation. 

Strategic guidelines
The Company determined the following strategic guidelines for the three year period 2011-2013 aimed at increasing its presence in the photovoltaic sector:

§    Power Generation in Joint-Venture: new objective of installed power for the three year period is 172 MWp (44,9 MWp installed capacity as at September 30, 2010);
§    Power Generation in full equity: building of plants (100% equity) with the objective of 18 MWp of installed capacity;
§    EPC: the new objective of installed capacity exceeds 140 MWp for the three year period(with and without direct panels supply) to high standing clients;
§    EPC activity optimization through the sale of big sized photovoltaic power stations after putting them into service, according to BOT model (build, operate and transfer);
§    Development of EPC activity and Power Generation in Joint Venture abroad;
§    Purchase of shareholdings in companies in Italy or abroad for boosting industrial activity;
§    Strengthening of the activities relating to the putting into exercise and maintenance of photovoltaic plants, aimed at generating a stable revenues source with a high marginality;
§    In  2012 entry into “Energy Saving” and “Mini-Hydro” businesses.

Economic-financial targets 
Thanks to high growth rate if the industrial objectives as defined in the relevant plan, the Company aimes at achieving in 2013 Revenues amounting to Euro 195.0 million, such a figure attesting a sensitive dimensional growth of the Group, and an EBITDA growth up to Euro 28.5 million (EBITDA margin 14.6%).
In the next three year period investments shall amount to Euro 72 million, aimed at the development of photovoltaic plants built in equally owned  JV and in full equity, keeping a gearing ratio equal to unity.

Dividends policy
The company confirmed the dividend distribution with a payout ratio inclded between 40 and 45%.

The company will meet the financial community on Monday February 28th, 2011  at 11.00 a.m., at Four Seasons Hotel in Milan (registration starts at 10:30). Documentation relating to the strategic plan presentation is available on www.ternienergia.com, under Investor Relations section.