The Strategic Plan


The Strategic Plan for the period 2013-2017, after approval by the Company’s Board of Directors, was presented on February 6, 2013. It can be summarized in the following points.

Core Business

Grid development is the priority, also introducing new technologies

In the next 5 years the Terna Group plans to invest 4.1 billion euro in activity regulated by the AEEG (Electricity and Gas Authority) to secure and modernize the electricity grid, of which 83% will be destined for Grid development. Of the 4.1 billion euro, approximately 300 million will be destined for the creation of accumulation systems.

Looking to the medium/long-term, the 2013 National Transmission Grid Development Plan confirms investments of 7.9 billion euro.

The Plan priorities aim at increasing the interconnection capacity of the electricity borders with other countries and at reducing inter-zonal congestion, between market zones or zones deriving from the use of renewable systems.

The Terna Group currently has more than 150 construction sites open all over the country, for a value of 3 billion euro. Overall 1,200 km of new sustainable and technological grid is under construction, together with 60 new stations. Once they are completed, these projects will enable the decommissioning of 850 km of old lines. Among the main works in progress we can note: the 380 kV “Foggia-Benevento” power line, between Puglia and Campania; the 380 kV “Trino-Lacchiarella” power line, between Lombardy and Piedmont; the 380 kV “Dolo-Camin” power line, between Venice and Padua, the doubling of the “Sorgente-Rizziconi*” electricity connection between Sicily and Calabria, and the two new interconnections with other countries “Piossasco-Grand’Ile*”, between Italy and France, and “Villanova-Tivat”, between Italy and Montenegro. Future infrastructure, characterized by significant technological and environmental innovation and sustainability, will lead to a 1 million tonne reduction in CO2 emissions released into the atmosphere. In particular, 70% of the total length of the 6 “top” projects (more than 1,000 km) will be made with submarine and underground cables, while latest-generation pylons such as the “single-pole” tubular towers and the “Sprout” towers will cover 60% of the overhead stretches.

Non-Core Business

Perfecting the business model

The Terna Group's strategy focuses on consolidating a pipeline of approximately 400 million euro, developing activities in the field of engineering, O&M and optical fibre housing, to which could be added a further potential 900 million, currently not included in the Plan forecasts.

Improvement of margins

Eighth year of growth

It is anticipated that the increase in revenues and control of costs will translate into further growth of profitability. It is estimated that the EBITDA margin at the end of the Plan could exceed 80%.

Sound financial structure

Continual commitment to strengthening capital ratios

In the 2013-2017 Plan it is estimated that the increase in borrowing will be reduced by 600 million compared with the previous Plan (1 billion vs 1.6 billion). The capital structure is confirmed as solid: the Net Debt to RAB ratio remains below 60% in all years of the Plan, and it is expected that Net Debt will fall below 4 times EBITDA by the end of the Plan.

Dividend policy confirmed

The 2013-2017 Plan presents a TERNA S.p.A. dividend policy in line with the one announced last year: during the Plan period, the basic dividend from Core Business is expected to be 19 euro cents per share, to which the contribution of the Non-Core Business must be added (payout of 60% of the results).