TERNIENERGIA S.P.A.

Italeaf has a 54.84 % shareholding in TerniEnergia, an Italian company operating in the renewable energy sector and the PV field. It is listed on the STAR segment of Mercato Telematico Azionario, the main Italian regulated securities market, organised and managed by Borsa Italiana S.p.A. TerniEnergia operates as a system integrator, with a turn-key offer of industrial sized PV plants for power generation, on its own and on behalf of third parties, including joint ventures with leading national c... ompanies. TerniEnergia also operates in the waste management sector, where it is engaged in the recovery of material and energy, and in the development and production of technologies. In particular, TerniEnergia is active in the recovery of used tyres, the treatment of biodegradable waste through the implementation of bio-digesters, the management of a plant for biological depuration, the decommissioning of industrial plants, the recovery of demolition metals and cleaning of industrial sites; and the development and production of technological apparatus. TerniEnergia, through its subsidiary Lucos Alternative Energies, operates in the development of energy efficient plants, both through an EPC (Energy Performance Contracting) scheme and FTT scheme (Financing Through Third Parties). Its objectives are to increase energy production from renewable sources, save energy and reduce omissions as outlined in the European environmental policy. TerniEnergia has set a strategy for the future with the following lines of development: - INTERNATIONAL DEVELOPMENT: In 2014/2015, construction for a leading European utility company of two PV plants in South Africa for an amount of approximately EUR 140 million is planned. In the short term TerniEnergia also plans to establish a company in a joint venture with Al Hamed Group, named TerniEnergia Gulf LLC, headquartered in Abu Dhabi, whose share capital shall be divided as follows: a majority stake of 51 % to be owned by Al Hamed Group and 49 % by Italeaf. The company will operate in the fields of power generation, waste to energy and waste management. By 2014 TerniEnergia expects to open the first sites and start the construction of a plant for the recovery of used tyres in the Middle East. - ITALIAN DEVELOPMENT: There is great potential in the growing sectors of smart energy and energy efficiency. In particular, the company has started negotiations for the acquisition of Free Energia S.p.A. A successful acquisition will, thanks to the sales network of Free Energia, allow for a completion of the downstream value chain for power generation plants owned by TerniEnergia. In addition, [TerniEnergia has acquired all the remaining outstanding shares of its portfolio company Lucos Alternative Energies in July 2014. The two operational investments will jointly allow for strong potential synergies and opportunities for the integration of the businesses, which will be the basis for a strong growth in energy efficiency and enhancement of energy production from renewable sources.] TerniEnergia will also continue strengthening its portfolio of environmental assets, completing a new facility for the treatment and recovery of "secondary raw material" of used tyres in Northern Italy and utilising a new plant in Southern Italy for energy recovery through anaerobic biodigestion and composting. Finally, the new plant for the treatment of industrial waste fluids in Nera Montoro, is as of [the day of this Company Description] in an advanced authorisation phase. Once completed, it will intercept a substantial demand in a market segment with high technological content and high growth prospects. - STRATEGIC DEVELOPMENT: TerniEnergia will focus on business lines with major developments. Concentration will be on power generation with full technological independence by diversifying the sources and technologies available. By doing this TerniEnergia enhances its opportunities in the short term and has the flexibility to meet changing demands in the future. TerniEnergia intends to have a balanced portfolio for each country in the process of internationalisation of PV, EPC and environmental business. In particular, TerniEnergia continues to undertake intensive scouting activities to promote development projects in the most attractive countries for the installation of large-scale plants within the sectors PV, biomass, biogas and energy recovery from waste. On the financial side, TerniEnergia intends to strengthen its excellent reputation with investors through its presence on the Italian Stock Exchange, in order to become a candidate for an investment platform for institutional investors. TerniEnergia wants to do this by creating the right conditions, through the stability of cash flows and using debt in an efficient manner with respect to changes in the demand of the market.More