Share performance

In 2012, the trend in the European exchanges was affected by the Eurozone crisis and by fears regarding the negative consequences on the real economy resulting from restrictive fiscal policies enacted by governments to comply with the budget restrictions. The ECB’s August decision on the possible implementation of non-conventional monetary policy interventions aimed at reducing the spread between securities of the peripheral countries and the German bund improved this climate of uncertainty.

In the USA, signals that the recession was being contained and the agreement reached to avoid the "Fiscal Cliff", which could have negatively affected the growth of the country, positively influenced the annual performance of the Dow Jones (+7.3%)

Even if the main European markets were in a very volatile situation, they closed the year in the black, with the exception of Madrid (-4.7%) which was affected by the banking crisis. In this framework, the FTSE-MIB index registered a gain of 7.8%.

At the industry level, the European DJ Utilities index closed basically even (-0.7%) with listed shares out-performing those connected to generation. In this scenario, the Terna shares (+16.1%) out-performed its principal peers and the industry, with a performance double that of the FTSE-MIB. Also at the TSR (Total Shareholder Return) level, Terna’s performance stands out with a total return for shareholders of 24.9% (more than double that of the FTSE-MIB +12.2%). The average of trades came to about 7.5 million pieces.

Lastly, it must be pointed out that during the first two months of 2013, the stock gained about 6%, better than the market (-2.2%) and the industry (-3.6%).

 

Trend of the Terna security and the FTSE MIB and DJ STOXX 600 Utilities indexes

Trend of the Terna security and the FTSE MIB and DJ STOXX 600 Utilities indexes

Source: Bloomberg. Data as of 28 February 2013

 

Total Shareholder Return

The most complete measure of the value created by a company for its shareholders is TSR (Total Shareholder Return), which is calculated by adding the increase in the price of the shares over a given period of time and the effect of the dividends per share paid in the same period. The calculation of the TSR shows the rate of return for an investor who bought Terna shares on date x and sold then on date y. This calculation considers all the dividends paid by the Company reinvested in Terna stock as of the ex-dividend date of the related coupon.

In terms of Total Return of the share, in 2012 Terna out-performed the Italian Blue Chips index (Terna +24.9% vs. FTSE-MIB +12.2%).

From the listing at the end of 2012, the TSR per shareholder reached 200.6%, bucking the trend of the returns of the average of the Italian Blue Chips which, during the period, lost 18.6%.

DIVIDENDS DISTRIBUTED BY TERNA S.P.A. (1)

  Year of payment Ex-dividend date Payment Dividend (euro)
Interim dividend 2004 2004 18 October 21 October 0.045
Dividend balance 2004 2005 23 May 26 May 0.070
Interim dividend 2005 2005 21 November 24 November 0.050
Dividend balance 2005 2006 19 June 22 June 0.080
Interim dividend 2006 2006 20 November 23 November 0.053
Dividend balance 2006 2007 18 June 21 June 0.087
Interim dividend 2007 2007 19 November 22 November 0.056
Dividend balance 2007 2008 23 June 26 June 0.095
Interim dividend 2008 2008 24 November 27 November 0.0592
Dividend balance 2008 2009 22 June 25 June 0.0988
Interim dividend 2009 2009 23 November 26 November 0.070
Dividend balance 2009 2010 21 June 24 June 0.120
Interim dividend 2010 2010 22 November 25 November 0.080
Dividend balance 2010 2011 20 June 23 June 0.130
Interim dividend 2011 2011 21 November 24 November 0.080
Dividend balance 2011 2012 18 June 21 June 0.130
Interim dividend 2012 (2) 2012 19 November 22 November 0.070
(1) Terna has adopted a policy providing for the payment of dividends twice a year. (2) Submitted for approval of the Shareholders’Assembly of May 14, 2013