Approved financial result as at March 31st, 2012

The Board of Directors of TerniEnergia S.p.A., a company operating in the renewable energy sector, listed on Star segment of Borsa Italiana, approved the interim financial report as at March 31st, 2012.

Stefano Neri, TerniEnergia’s Chairman and Managing Director, commented as follows:

“In the first quarter, our Group has obtained, once again, results in line with the target stated in the 2012 strategic plan. In particular, positive signals coming from the achievement of challenging industrial target and from the evidence, for the first time, of the economic contributions from the activity of international photovoltaic EPC and from the energy efficiency business. TerniEnergia maintains a good financial balance, while having made the choice not to sell any owned PV plant and having decided to retain “full plants in numbers higher than projected in the plan, thus consolidating the line of revenues guaranteed by the Power Generation business. The Company is, finally, strongly focused on introducing criteria of innovation and flexibility in its activity, even in order to strengthen the capacity of reaction and adaptation to change, in case of in Italy will be signed a new regulatory detrimental to the photovoltaic industry. TerniEnergia, as was the case of the launch “Quarto Conto Energia”, is ready to assume strategic decisions designed to enable it to continue its own path of growth and value creation, even to benefit shareholders”.

In the first quarter 2012, TerniEnergia has completed the construction of n. 6 new industrial sized photovoltaic plants with a total installed capacity of 23.5 MWp (18.3 MWp in 2011) in Greece and in the italian regions: Umbria, Lazio, Calabria e Sicilia. It is pointed out the increase in average power plant installed and the completion of the first plants abroad, consequently of the strategic policy to start the international EPC PV business.

During the first quarter of 2011, revenues amounted to Euro 23 million and they highlighted a drop equal to 25% (Euro 30.6 million during the first 2011 quarter). This is ascribable to the strategic line of focusing the industrial EPC activity on construction of plants behalf of important and solid third parties and without panel supply. TerniEnergia, at the same time, has chosen to stop investments in building full equity or JV plants for the power generation business, because of significant regulatory uncertainty and the implications arising from the review of the national feed in tariff system.

The EBITDA was equal to 10.7% of revenues and amounted to Euro 2.5 million  (Euro 3.4 million, equal to 11.2%  of revenues as at 31st March, 2011).

The net profit amounted to Euro 1.1 million, decreasing of 33% compared to the first quarter of

2011 (Euro 2.2 million).

The net financial position was Euro 44.4 million (Euro 35.8 million as at December 31st, 2011). In line with the strategic policy stated by the Group, the increase of NFP  is determined by significant investments in fixed assets, made for the construction of facilities “full equity “in the course of 2011 (investments of Euro 28 million for a total installed capacity of 10.4 MWp, of which 3 MWp have been sold to third party companies and the remaining 7.4 MWp are fully available to the company). Non-current net financial position amounted to Euro 13.3 million, the short term net financial position was Euro 31.1 million. The short term net financial position/Net Equity ratio was 0.9, below unity, in an safely field. The short term net financial position/Net working capital ratio was 0.8 below unity.

After the closing of the first quarter of 2012, no significant events occurred.