The Group

• Closing of the IP Maestrale acquisition and implementation of synergies with ERG Renew
• Pursuit of development opportunities in Eastern European countries also through joint ventures with LUKERG Renew, via a correct mix of organic growth and acquisitions
• Potential opportunities for expansion in other countries and technological diversification currently being considered
• Rigorous financial discipline: average equity IRR >13%
• Enhancement of operational efficiency

The growing importance of this sector within the growth strategy has led to the recent acquisition from GDF SUEZ of an 80% equity interest in IP Maestrale, owner of 41 wind farms in Italy and 5 in Germany with a total installed capacity of 636 MW. This has allowed ERG Renew to become Italy's largest wind power producer, with a total installed capacity of 1,061 MW, and one of the top 10 in Europe, with an installed capacity of 1,231 MW, thereby accelerating its international development via entry into the German market and enabling ERG Renew to achieve a dimension such as to ensure greater flexibility for the implementation of its growth plans. The international growth path has been further consolidated with the recent acquisition via LUKERG Renew of a project for the development of a wind farm in Romania which is expected to have an installed capacity of approximately 84 MW. The organic growth process has continued in Italy too, with the coming on stream in November of the Amaroni wind farm in the province of Catanzaro, which has an installed capacity of 22.5 MW and is an extension of the Fossa del Lupo wind farm (97.5 MW), operational since 2011.

The plan provides for overall investments in the sector totalling 300 million Euro with a view to realising further development opportunities, above all in Romania and Bulgaria, countries which offer interesting growth prospects, where, by the end of the plan, an increase in installed capacity of around 100 MW is expected to be achieved (in proportion to ERG's interest in LUKERG Renew) to reach a total installed capacity of 1.4 GW. As regards Italy, the acquisition of IP Maestrale will be completed and the integration process will be commenced, with the implementation of major synergies in terms of operational efficiency; growth opportunities will also be evaluated in the Italian market, bearing in mind the current regulatory situation.
Forecast EBITDA at the end of the period is approximately 300 million Euro.
 

• Constant enhancement of the quality and efficiency of the thermoelectric plants in order to increase their contribution to the Group's economic results
• Option for early termination of the CIP6 convention as regards the ISAB Energy plant by 31 March 2013

Total investments amounting to 60 million Euro, envisaged over the duration of the plan period, will be focused on enhancing the plants' operational efficiency via an increase in ERG Power's cogeneration capacity and a more stable presence in the “Delivery Services Market”.
Forecast end-of-plan EBITDA is approximately 200 million Euro.
 

• Completion of Raffineria di Roma (TotalErg) transformation into a logistics hub
• Retail network rationalisation based on new market dynamics
• Option for definitive exit from coastal refining by the end of 2013

The business strategy provides for investments totalling 140 million Euro mainly allocated to streamlining the TotalErg Retail network according to the new market dynamics, with the closure of the sales outlets considered no longer profitable and optimisation of the various typologies, giving priority to owned facilities in order to enhance the Retail network's efficiency.
As regards TotalErg, end-of-period EBITDA is expected to double with respect to 2012.