MAIN TARGET OF THE RECOVERY AND RELAUNCH PLAN

TARGETS

Through the planned operational turnaround, which will be completed with the merger between TerniEnergia and Softeco by 2019, the company aims to implement the complete redefinition of its strategic activities, completing the process of transformation into a “Smart Company”.

This process will produce:

INDUSTRIAL AND OPERATIONAL TURNAROUND

Proposed divestiture measures

The photovoltaic assets and those of the CleanTech Business Unit are expected to be disposed and, in particular, by 2019:

  • the sale of photovoltaic energy production plants, held directly or indirectly;
  • the sale of end-of-life tyre treatment and recovery plants;
  • the sale of the Nera Montoro biodigester;

by 2020:

  • the sale of a liquid waste treatment plant and 3 remaining photovoltaic plants.

As a result of these disposals, the Plan provides for a total financial benefit of approximately Euro 115.8 million (of which approximately Euro 39.8 million Equity Value and approximately Euro 76.0 million reduction in the Group’s financial exposure due to the taking over of part of the debt by the purchasers of the assets).

Merger by incorporation of Softeco into TerniEnergia

The corporate rationalisation process of the TerniEnergia Group is expected to be completed through the merger by incorporation of Softeco Sismat Srl into TerniEnergia by the end of 2019. This transaction will allow TerniEnergia to complete the industrial turnaround process of the Group through:

  • the strategic control of the new “Digital Energy” market, thanks to the development and growth of the Smart Solutions and Services divisions, based on Softeco’s expertise;
  • the application of the Digital Transformation paradigm as well as the adoption of new digital technologies for the energy efficiency sectors, according to a new business model, and for the maintenance of energy plants (proactive and prescriptive O&M), through an increased capacity for data analysis and the integration between the plant engineering skills of TerniEnergia and those for the development of innovative advanced analytics solutions by Softeco.

Finally, it is believed that the merger will simplify the corporate architecture, confirming the industrial vocation of TerniEnergia, optimize decision-making processes and management efficiency (corporate, accounting and administrative), with a consequent greater rationalisation of costs.

RELEVANT OPPORTUNITIES EXPECTED FROM THE EFFECTS OF INNOVATIVE ACTIVITIES

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resources invested in research
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projects since 1993
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international partners
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active projects in 2017
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new projects in 2017
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financing between 2017 and 2019
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resources invested in research
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projects since 1993
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international partners
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active projects in 2017
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new projects in 2017
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financing between 2017 and 2019

FROM FOUR TO TWO STRATEGIC BUSINESS UNITS

We simplify the group’s structure by improving its operational efficiency and reducing its complexity.

THE PLAN IS FOCALIZED ON THE GROUP’S STRATEGIC REPOSITIONING, THAT THANKS TO THE INTEGRATION OF THE DIGITAL COMPANIES SOFTECO SISMAT AND SELESOFT, WE WILL COMPLETE OUR EVOLUTION FROM LEADER OF THE PHOTOVOLTAIC SECTOR INTO A SMART ENERGY COMPANY, DELINEING OUR NEW IDENTITY

A FLEXIBLE APPROACH TO GUIDE STRATEGIC CHANGE

From four to two strategic business lines

REPOSITIONING IN A NEW SECTOR

Repositioning in a new sector

SBU SMART SOLUTIONS AND SERVICES

SBU ASSETS

The Plan was prepared with the assistance of KPMG as an industrial and financial advisor.