Letter to Shareholders


Ladies and Gentlemen Shareholders,

2009 was Terna’s best year in terms of results. A year that not only achieved outstanding financial returns, but also in terms of development, grid growth, improved safety, international recognition and sustainability. All this was attained despite an unfavourable macro-economic situation and reduced energy consumption.
We demonstrated our capability in taking the proper action and in our forecasting abilities, particularly in anticipating the potential consequences of the crisis and its relative risks, obtaining results that reversed the trend in every field.

Today, Terna is the first independent European player and the seventh in the world among Grid Operators, also thanks to the most important acquisition transaction ever carried out in Italy in 2009, over 18,000 km of HV lines from Enel. At the same time, with the sale of Terna Participações in Brazil, we generated capital gains for over €400 million, that will be reinvested into the grid’s development and integrated in the dividends policy.
Even net of this extraordinary transaction, the main figures of the Terna Group are very positive. The 2009 financial statements registered a double-digit growth in all its principal indicators.
At the consolidated level, revenues increased by 13.8% and stood at €1 billion and 361 million, the gross operating margin exceeded €1 billion increasing by 18%, the Group’s net income reached €771 million increasing by 135% (by 17.8% without the effect of the sale of the Brazilian subsidiary) and investments exceeded €900 million, increasing by 17.7%.
These results allowed us to propose a distribution of dividends per share increased by 20% compared to the previous year. With regard to the share’s trend, despite the international crisis, Terna’s shares were appreciated by the markets and were the only ones of the FTSE Mib to close 2009 with an all-time high. The Company was also the best European utility for total shareholder return in 2009 as well as in the last three years.

2009 was also a fundamental year in terms of building plants and systems. 2010 will be the year of the building sites and the Company will also be focused on developing the photovoltaic project further improving the Group’s value.

Since the very beginning, we always maintained that Terna’s strategic objective was to create value for all shareholders and for the entire country. We kept these promises, also during a year of economic turmoil, with significant results in terms of efficiency and of economic, environmental and social responsibility above all thanks to the commitment and to the professional and technological expertise of all of Terna’s team.

L’Amministratore Delegato

Firma Cattaneo