Cattaneo: efficiency and creating value are the drivers of our activities Presented in Milan the 2012-2016 Industrial Plan: 4 billion euros invested for the future grid, 2 billion euros for non-traditional activities

1. Flavio Cattaneo, CEO Terna, Plan for 4.1 billion Euros for the grid
and 1.9 billion Euros for new business
Cattaneo: efficiency and creating value are the drivers of our activities
Presented in Milan the 2012-2016 Industrial Plan: 4 billion euros invested for the
future grid, 2 billion euros for non-traditional activities
In the next 5 years, 4.1 billion euros will be invested for the safety and modernization
of the electricity grid; considering also 1.2 billion euros already invested in 2011, the
investment plan will reach 5.3 billion euros, exceeding the 5 billion euros of the previous
Plan.
Approximately 1 billion euros must be added to the 4.1 billion euros for implementing
battery storage systems for 240 MW; approximately 900 million euros of investments
could also be included among the Non-Traditional Activities both in Italy and abroad
for projects for private customers. This doubles the amount of capex for new business
projects (up to 1.9 billion euros) compared to one billion euros included the previous Plan.
During the Plan period, it is expected that up to a total of 6 billion euros could be invested.
Terna will develop over 300 building sites in full operation throughout Italy for a total of
2.9 billion euros.
Improving margins and stronger financial structure
During the Plan period, the Ebitda margin is expected to grow reaching over 80%
compared to the target of 78% of the 2011 Plan. Net financial debt for the Plan period
will increase by 1.6 billion euros for reaching 6.7 billion euros, with a significant reduction
of 1 billion euros compared to the previous Plan. Capital structure remains solid: the ratio
between Net financial debt and RAB will remain at nearly 55% and the ratio between Net
financial debt and Ebitda will improve compared to 4.2% at the end of 2011, remaining 4
times lower.

2. New dividend policy
The new dividend policy includes as of 2012 a base coupon of 19 eurocents for shares
from Traditional Activities. To these 60% of payout is added for results from Non-
Traditional Activities. The base dividend for 2012 is therefore higher than what it would
have been with the old dividend policy (18.4 eurocents). The new policy advances by one
year the target set in the previous one.
Thanks to management efficiency and proceeds from extraordinary transactions and Non-
Traditional Activities, the company has overall distributed to its shareholders from 2005
to 2011 dividends for two billion 400 million euros and has always confirmed increasing
coupons: from 13 eurocents in 2005 to 21 eurocents in 2011. Thanks to the proceeds
from Non-Traditional Activities, Terna succeeded, despite the heavy impact of the Robin
Hood Tax, in confirming for 2011 a dividend of 21 eurocents, in line with the previous one.
Fonte: Terna WebMagazine