Italeaf S.p.A.: positive and growing values for TerniEnergia as at March 31, 2015

PRESS RELEASE 14 MAY 2015

ITALEAF: positive and growing values for TerniEnergia as at March 31, 2015;
Revenues and net profit rose markedly, NFP decreased
· Revenues of Euro 68.6 million (Euro 10.4 million as at 31/03/2014)
· EBITDA amounted to Euro 5.2 million, +13.7% (Euro 4.6 million as at 31/03/2014), with EBITDA margin at 7.6%
· EBIT amounted to Euro 3.8 million, + 37% (Euro 2.8 million as at 31/03/2014)
· Net profit amounted to Euro 1.2 million, +76% (Euro 0.7 million as at 31/03/2014)
· NFP of Euro 105.6 million, Euro 14.3 million of which in short term (Euro 108 million as at 31/12/2014, Euro 18.3 million of which in short term)
· Net equity amounted to Euro 71.9 million, +0.8% (Euro 71.3 million as at 31/03/2014)

The Board of Directors of TerniEnergia, smart energy company active in the fields of renewable energy, energy efficiency, waste and energy management, listed on the Star segment of the Italian Stock Exchange and part of Italeaf Group, approved today the interim financial report as at March 31, 2015.
Stefano Neri, Chairman and CEO of TerniEnergia commented as follows:
"We express a positive view regarding the results achieved in the first quarter, that confirm the validity of the strategic and operational decisions of the new Business Plan. These results are in line with the new provisions, even though the construction of the two giant photovoltaic plants in South Africa started only in the second half of March and the end of which is expected in 2016".

CONSOLIDATED RESULTS AS AT MARCH 31, 2015
Revenues amounted to Euro 68.6 million, showing a significant growth compared to March 31, 2014 (Euro 10.4 million). The increase is mainly attributable to the consolidation of the results of Free Energia, following the dedicated capital increase ended October 21, 2014. The revenues from the business lines "Cleantech" and "Energy saving" has registered a significant increase, compared to the corresponding period of 2014.
EBITDA amounted to Euro 5.2 million, with a significant increase (+ 13.7%) compared to March 31, 2014 (Euro 4.6 million). The EBITDA margin is equal to 7.6%, with a decrease compared to 03/31/2014 due to the change of the business model.
Net operating income (EBIT) amounted to Euro 3.8 million (Euro 2.8 million as at March 31, 2014, +37%), after amortization of Euro 1.3 million (Euro 1.8 million at the same period of 2013).
Net profit, which includes the share of results from the activity of photovoltaic JV, amounted to Euro 1.2 million. Net income as at March 31, 2014 was Euro 0.7 million (+76%).
The net financial position amount to Euro 105.6 million (Euro 108 million as at 31/12/2014). The non-current NFP is Euro 91.3 million, while the net financial position in short term amounted to Euro 14.3 million. The NFP/Net equity ratio equal to 1.46x, improves significantly (1.51x as at 31/12/2014) in line with the expectations of the industrial plan.
The Net Equity amounted to Euro 71.9 million, with an increase of 0.8% (Euro 71.3 million at 31/12/2014), while the Fixed assets amounted to Euro 149.6 million, of which Euro 91.1 million referring to tangible assets.

INDUSTRIAL RESULTS AS AT MARCH 31, 2015
The total number of photovoltaic plants built by TerniEnergia from the beginning of its activity is equal to 273, with an aggregate capacity of approximately 284.1 MWp (15.8 MWp in full ownership and 22.8 MWp in joint venture for the Power Generation activity). Moreover, are connected to the grid biomass plants for a total of 1.5 MWe and 2 MWt.
The total energy production of the full ownership and joint ventures plants for the power generation business, in the first half was equal to around 10 million kWh. In the environmental sector are operating a treatment and recycle plant of end of life tires (ELTs), the GreenAsm biodigestion and composting plant and finally the groundwater remediation plant in Nera Montoro (TR).
During the period the Group Free Energia has managed 335 GWh of energy for energy-intensive customer. Lucos Alternative Energies has completed lighting energy efficiency sites of industrial scale for a primary Italian cement group, for around 5,200 light points, with an expected savings of 68% and a delta of energy saving of approximately 1.1 million kWh.

SIGNIFICANT EVENTS OCCURRED AFTER THE END OF FINANCIAL YEAR
TerniEnergia enters in the gas sector e grows in the dual fuel market
On April 23, 2015 TerniEnergia has signed an agreement with La Mercantile Srl La Spezia for the acquisition of the 85% of the share capital of New Gas Trade Srl (NGT), Italian player of the natural gas and liquefied natural gas (LNG) market, as part of an integrated strategy on energy commodities. The sales price of the shares has been agreed between the parties to Euro 150 thousand and the payment by TerniEnergia is paid in cash.
The only other shareholder of NGT is Intermonte SIM Holding, a company regulated MiFID. As part of the company, Intermonte Holding SIM offers consulting and operational activities relating to financial instruments linked to the management and trading of gas & power sector, for third parties and on their own.

Shareholders' meeting approves 2014 financial Statements and a distribution of dividends equal to Euro 0.065 per share
On April 24, 2015, the Ordinary Shareholders' Meeting of TerniEnergia has reviewed and approved unanimously the consolidated financial statements as at December 31, 2014. The Shareholders' Meeting also approved the distribution of a dividend equal to Euro 0.065 per ordinary share gross with-holdings set forth by law. The dividend will be paid on May 20, 2015, and the relevant coupon No. 6 shall be separated on May 18, 2015.

BUSINESS OUTLOOK
TerniEnergia is fully developing its strategy for the year 2015, contained in the industrial plan "Fast on the smart energy road". In particular, in the coming months it is expected to make a substantial contribution from contracts in photovoltaics already acquired and being acquired abroad, also due to the start of its construction sites. Free Energia is pursuing an expansion in energy management business in Italy, through an increased penetration of the private market, and in particular of the segments SMEs and energy-intensive companies. The Group intends to seize the significant "cross-selling" business opportunities in the areas of energy efficiency (fast-growing) and energy sale, thanks to the maximization of benefits guaranteed by the possibility to optimize the financial structure to operational requirements, putting to leverage the energy produced to reduce the weight of the acquired on the market for energy management activities, increasing the possibility of issuing corporate guarantees and facilitating relationships with the world of credit, thanks to the recovery of business with high revenue generation in Italy.
In addition, TerniEnergia has started a strategy of external growth, monitoring the evolution of the scenario of the Italian and international energy sector in order to identify the most attractive opportunities. In the coming months, Through the acquisition of 85% of NGT, TerniEnergia wants to seize the goal of completing the offer for energy management, ensured by Free Energia, through the market access of dual fuel offer for industrial customers. This transaction enables an effective business tool for the customer loyalty (mostly cross-selling gas on the basis of customer energy) and will represent, at the same time, a development tool for new customers. In particular, TerniEnergia intends to leverage the ability to reach a customer base of over 25 thousand industrial player, including direct and indirect customers, increasing the supply of energy products and guaranteeing a real saving on the "cost component", also thanks to the energy efficiency offer by the Group. Through the partnership with Intermonte Holding SIM, within the corporate structure, we are confident to amplify the services with high added value in the supply system. In particular, we are going to integrate the opportunities offered by our shareholder partner in the desk management dedicated to financial instruments related to the gas & power sector, corresponding with the purchase characteristics of the main segments served. The Company has provided significant investments dedicated to activities of ESCO with the formula of third party financing (TPF).
The Group continues scouting and market analysis for the development possible partnerships in PV EPC, in order to assess the possibility of setting up an "Italian leader" industrial platform for the achievement of large contracts abroad. TerniEnergia finally continued his research of the best opportunities to enter into the field of development and industrial production of smart solutions and technologies for energy efficiency and cleantech.
The Company will also continue the process of strengthening the scope of the environmental asset, completing a new facility for the treatment and recovery of "secondary raw material" from end of life tires in Northern Italy, at Borgo Val di Taro (PR). Finally, will be installed the new treatment plant of industrial fluid waste in Nera Montoro (TR), which granted the authorization phase. The new water remediation plant will intercept a substantial demand (58 cubic meters/year) in a market segment experiencing a high technological activity with high growth prospects.

The Officer appointed for the preparation of accounting and corporate documents, Dott. Paolo Allegretti, states, pursuant to paragraph 2 of art. 154-bis of the consolidated Financial Act, that the accounting information that is contained in this press release corresponds to the results contained in the documents, books, and accounting records.

TerniEnergia, a company incorporated in September of 2005 and part of Italeaf Group, is the first Italian smart energy company and operates in renewable energy, energy efficiency, energy and waste management. TerniEnergia operates as system integrator, with a turn-key offer of industrial sized photovoltaic plants, on behalf of third parties and on its own, for the Power Generation business, also through joint venture companies with leading national players. TerniEnergia operates in the waste management sector, recovery of the material and energy, development and production of technologies. In particular, the Company is active in the recovery of tires out of use, in the treatment of biodegradable waste through the implementation of biodigesters, management of plant for the biological depuration; decommissioning of industrial plants, recovery of demolition metals and cleaning of industrial sites; development and production of technological apparatus. Through Free Energia, the Group is active in the energy management, energy sales to energy intensive customers, software and services for energy management, administrative, financial and credit management. TerniEnergia, through Lucos Alternative Energies, operates in the development of energy efficient plants both through EPC scheme and FTT scheme (Financing Through Third Parties), pursuing the objectives of increasing energy production from renewable sources, of energy saving and reduction of emissions as set forth by environmental European policy.
TerniEnergia is listed on STAR segment of Borsa Italiana S.p.A..

This press release is also available on the Companies' website: www.italeaf.com and www.ternienergia.com.

In attach:
- Consolidated statement of financial position as at 31/03/2015
- Reclassified consolidated income statement as at 31/03/2015
- Consolidated net financial position as at 31/03/2015

Consolidated statement of financial position as at 31/03/2015

Reclassified consolidated income statement as at 31/03/2015

Consolidated net financial position as at 31/03/2015

Certified Adviser

Mangold Fondkommission AB is the Certified Adviser of Italeaf on NASDAQ OMX First North.

For further information please contact: 
Filippo Calisti
CFO - Italeaf S.p.A.
E-mail: calisti@italeaf.com

Mangold Fondkommission AB
Tel. +46 (0)8 5030 1550
info@mangold.se

Italeaf SpA, established in December 2010, is a holding company and a business accelerator for companies and startups in the areas of innovation and cleantech. Italeaf operates as a company builder, promoting the creation and development of industrial startups in the fields of cleantech, smart energy and technological innovation. Italeaf has headquarters and plants in Italy at Nera Montoro (Narni), Terni, Milano and Lecce; has international offices in London and Hong Kong and a research and development centre in the Hong Kong Science and Technology Park. The company controls TerniEnergia, a smart energy company listed on the STAR segment of the Italian Stock Exchange and active in the fields of renewable energy, energy efficiency and waste and energy management, Greenled Industry, working in the development and production of power LED lamps for industrial energy efficiency and public lighting, WiSave in the "internet of things" field, for the development and production of thermostats and smart technologies for the remote control of electrical and heating items of buildings managed through a cloud infrastructure, and Skyrobotic, in the business development and manufacture of civil and commercial drones in mini and micro classes for the professional market.