• Expected savings in company fixed costs of more than 2 million Euros on an annual basis and the sale of some non-strategic assets
  • Forecast of compliance with the covenants of the “TerniEnergia 2019” bond
  • Cooptation of the Independent Director Stefania Bertolini

The Board of Directors of TerniEnergia, which met today under the chairmanship of Stefano Neri, examined the measures to ensure the transition towards the strategic repositioning of the company, in accorsance with the new strategic guidelines 2018-2020 announced to the market on 28 September 2017.

The Board of Directors has evaluated a transition plan, to be implemented immediately, aimed at stabilizing the company’s economic and financial situation by December 31,2017 and ensuring the optimization of the resources available in the challenging phase of the change.

These actions, which confirm the strategic guidelines 2018-2020 and provide for savings in company fixed costs of over € 2 million on an annual basis, include:

  • personnel management through the use of social safety nets for one year and 45 employees, in order to optimise the transition towards strategic repositioning, with a reduction in costs compared to the collective redundancy plan;
  • potential sale of non-strategic assets, mainly related to the core business of the recent past, in order to obtain liquidity. These are, in particular, non-controlling investments in photovoltaic plants with a total power of approximately 30 MWp. The timeframe for defining this type of transaction on the secondary market varies between 3 and 8 months;
  • full or partial sale of Newcoenergy S.r.l., which owns the biodigestion plant under construction in Calimera (Lecce), for the treatment of organic waste for the production of biomethane. The possible sale of the construction site avoid the need for capital intensive investments which are not part of the new strategic course programmes;;
  • opportunities for the sale of Greeled Industry S.p.A.;
  • contribution in kind of the EPC and O&M branch or business units (engineering and technical office, operating teams and equipment) to existing industrial companies operating in the sector to give continuity to the LOB “On Site Engineering and Services”, transforming fixed costs into variable costs and safeguarding employment levels;
  • revision of the cost of service contracts, adapting to the new, smaller requirements.

The Board of Directors of TerniEnergia subsequently examined the probable effect of the above mentioned transitional measures, taking note of the provision for compliance with the financial covenants of the “TerniEnergia 2019” bond.

The Board resolved to appoint Prof. Stefania Bertolini as independent director by co-optation, in accordance with article 2386 of the Italian Civil Code. Stefania Bertolini, who will remain in office until the next Shareholders’ Meeting, declared that she possesses the requisites of independence and respectability provided for by the applicable legislation and by the Code of Conduct for listed companies. On the basis of these statements and the information available to the Company, the Board of Directors has assessed the abovementioned independence requirements for Director Bertolini, whose curriculum vitae can be found on the Company’s website (www.ternienergia.com).