After the Merger with TerniGreen and in a changed macroeconomic and sectorial scenario, the Group aims to grow through the economic and financial balance, the development of high-margin business and the long-run stability of flows.
- 3 phasis of development : after the start-up and the market incentives, the Company became an integrated, multi-technology and multi-functional Green Company.
- 3 business guidelines: Independent Power Producer (IPP), Integrated Energy Solutions (IES), Environmental Resources Solutions (ERS)
- 3 continents for internationalization : Europe, South Africa and Asia.
The Board of Directors of TerniEnergia S.p.A, a company active in renewable energy field, in energy efficiency and in the waste management sector, listed on Star Segment of Borsa Italiana, chaired by Stefano Neri, has reviewed and approved today the Business plan and the guidelines for the strategic development 2013-2015 post-Merger with TerniGreen
Stefano Neri, Chairman and Ceo commented as follows:
“Green Economy is acquiring profiles of industrial relevance in rapidly growing not only in Italy, in particular with regard to the production of clean energy, energy saving and energy efficiency, recycling and recovery of materials and energy from marginal resources. In view of new needs related to sustainability, there are still no integrated industrial actors operating exclusively in the field of Green. We need therefore new players capable of creating an aggregation platform that represents at the same time an opportunity for institutional investors. This platform, in order to be formed, should have a focus on clearly identifiable segments, consisting largely of tangible assets that can generate stable cash flows from long-term with a low risk profile. Towards investors, therefore, a strong point will be represented by the choice of listing in a regulated market, in order to ensure transparency and the adoption of best practices and appropriate form of governance.
We cannot disregards the acquisition of an international profile and the industrial and appropriate track record is decisive to prove high industrial capability of implementation management in achieving optimal performance over time. Finally, the platform mentioned above must have a dimension that could be an element of aggregation without constraints on growth posed by the actual shareholder.
TerniEnergia, following the Merger with TerniGreen, is therefore a candidate to play a leading role in the Green sector , with the knowledge of having all the features required to provide a platform for aggregation at the international level, which meets the expectations of the financial community and in particular those of large institutional investors to allocate in the Green sector part of their investments, favoring the early strengthening of a new industrial sector.”
Business plan and guidelines for the strategic development
The new plan has been developed on the basis of integration between the component “utility” belonging to TerniEnergia’ power plants and the component “growth” of TerniGreen’s business.
It also takes into account a changed macroeconomic scenario and global trends of the market that reshape the energy needs at Country level as well as in the industrial sectors, differ the needs in different geographic markets also in function of the related “country risk”, enhance the technological contribution in terms of efficiency and economic and environmental sustainability, reward integrated skills, show a phase of consolidation and concentration in the sector and the gradual depletion of incentive policies towards grid parity, and finally provide a sustainable access to capital and debt for operators who comply with the conditions of transparency required by the markets and have a combination of stable cash flows and growth opportunities.
The business plan “TerniEnergia 3.0” has been developed through the following 3 guidelines for strategic development:
- Third phase of growth of the Company, after start-up and success in the incentives market, with the completion of the creation process of a “Green Company”, multi-technology and multi-function, through the integration of different technologies for clean power generation, energy efficiency and recovery of marginal resources.
- Construction of a new organizational identity based on three business units:
- Independent Power Producer (IPP) – Energy Production from various renewable sources (solar, biomass, waste), in a sustainable and economically competitive way for national or local networks with direct investment of TerniEnergia and of its coinvestitor partners.
- Integrated Energy Solutions (IES) – Construction of renewable energy plants and cogeneration plants at competitive prices and efficient consumption of important customers to provide them with a competitive advantage in their investment or participation in investments with the Esco formula. Fall into this business unit also activities of EPC and BOT for third parties in the various renewable energy sources.
- Environmental Resources Solutions (ERS) – Offering of integrated solutions for the use of marginal resources through their economic recovery and transformation into new uses, or conversion into energy, with direct investment. Among the lines of action already active: recovery of used tires, the treatment of organic waste, decommissioning, reclamation and conversion of industrial sites and their purification.
- Internationalization in 3 different continents to catch development opportunities and deploy the country risk. International development will take place both in emerging markets with strong growth in energy and environmental demand (South Africa, India), and in mature markets characterized by demand for replacement of capability and energy efficiency Energy (Europe).
Economic and financial target
In 2012, the Group aims to maintain a solid financial balance and confirms a dividend policy oriented towards shareholders’ returns.
Investments in 2012 amounted to approximately € 34 million and are aimed, as well as the development of photovoltaic systems, to the construction of energy efficiency power plants and to the construction of plants for the recovery of materials and energy from waste and biomass.
Additional investments expected in 2013 are around 20 million euro.
The Group aims to achieve an EBITDA margin of 27% in 2013, to 28% in 2014 and to 29% in 2015, (data relating to the business of the Group resulting from the aggregate of the proportionate consolidation of power generation) thanks to the new composition of the business in favor of higher-margin activity and long-run stability of flows.
The Slides of presentation of the Business plan are available on the Company’s website, section : Investor Relations at: http://www.ternienergia.com/investor_relations/presentazioni.aspx
Other resolutions
The Board of Directors took note of the full readiness of the major shareholder T.E.R.N.I. Research S.p.A. with regards to TerniEnergia to use the trademark “Terni, with the stylized image of the waterfall Cascata delle Marmore”, registered with the Patent and Trademark Chamber of Commerce of Terni, for any purpose identification, representation, sales, production and / or provision of services. The brand in question is composed of twelve lines arranged to outline the essential feature of the Cascata delle Marmore. The schematic profile of the waterfall above the writing Terni, was realized in tempera on parchment by Giuseppe Preziosi (Terni, 1895 – Rome, 1973), an artist open to novelties of the Second Futurism, who also supervised advertising production , exhibition booths and pavilions.The brand name refers to the long history of both Companies “Terni Company for Industry and Electricity,” and then the Company Terni, the national giant of steel industry, until 1966 and then from 1987 to 1989 and, finally, was used from 2011 by TerniGreen SpA, today incorporated into TerniEnergia. The brand, destined to be forgotten, was recovered from T.E.R.N.I. Research S.p.A. as an element of continuity and distinctive image of local industrial capability, combining contemporary green economy with the emblem of the transforming power of man represented by the waterfall of Preziosi.