The Business Plan

On 6 February 2013, Terna approved the Terna Group's Business Plan for the period 2013-2017. Below are the guidelines:

  • core business: over the next five years, €4.1 billion will be invested in safety and to modernise the electricity grid, of which 83% will be destined for the development of the National Transmission Grid. Of the €4.1 billion, around 300 million will be destined for the creation of accumulation systems. The Plan confirms, for the medium and long term, investments of €7.9 billion, focused on increasing the interconnection capacity of electricity borders with foreign countries and reducing intra-zonal congestion between market areas or deriving from the use of renewable plants.
  • non-core business: the Group's strategy has permitted the consolidation of a €400 million pipeline, developing business in the field of engineering, O&M and fibre optic housing to which a further potential €900 million could be added in the context of the plan;
  • improved margins (EBITDA margin): increased revenues and cost control will allow for improvement of profitability. EBITDA at the end of the period will be over 80%;
  • a sound financial structure: the plan allows the increase in financial debt to be reduced by €600 million in comparison to the previous plan (1 billion vs 1.6 billion). The capital structure remains solid: during the course of the plan, the ratio between net debt and RAB will remain below 60% in all years of the plan and it is estimated that the ratio of net debt to EBITDA will improve and fall below four times at the end of the plan;
  • confirmation of dividends policy: in line with the announced dividends policy, a basic dividend is envisaged from core business amounting to 19 euro cents per share, in addition to the contribution of non-core business (payout of 60% on results).