The Business Plan
On 06 February 2013, Terna approved the Terna Group Business Plan for the period 2013-2017; guidelines are set out below:
- Traditional Activities: In the next 5 years Terna Group will invest, in activities regulated by the Electricity and Gas Authority (AEEG), 4.1 billion euros for the Electricity Grid’s safety and modernization, of which 83% for Grid development. Of these 4.1 billion euros, about 300 million euros will be allocated to development of storage systems;
- Non-Traditional Activities: Terna strategy allows to consolidate a pipeline of about 400 million euros, developing activities in the field of engineering, O&M and housing of fibre optic. Further potential 900 million euros, could be added, but they are not currently included in the Plan;
- Improved Margins (EBITDA margin): Increased revenues and cost control will allow to achieve an additional increase in profitability. The Ebitda margin at the end of the Plan should exceed 80%;
- Strong Capital Structure: The 2013-2017 Plan set a lower increase of the financial debt for an amount of 600 million euros compared to previous plan (1 billion euros compared to 1.6 billion euros). The capital structure remains solid: during the Plan period the ratio between Net debt and RAB will be lower than 60% in all the plan years and we foresee that the ratio between Net debt and Ebitda will improve and reach a value below 4x at the end of the Plan;
- Dividend Policy Confirmed: The 2013-2017 plan confirms the Terna S.p.A. dividend policy announced last year: in the Plan period a base dividend from Traditional Activities equal to 19 eurocents per share is expected, on top of which the contribution from Non Traditional Activies will be added (60% pay out on results).
Commitment confirmed on Grid development.