In 2009, a year of highly volatile stock markets, the defensive nature of Terna’s shares enabled them to record a performance that was decidedly better than that of the average of both Italian blue chips and European shares in the industry.

In effect, the Company’s shares gained 28.5%, compared to the 19.5% gain of the FTSEMib and the 0.98% of the DJ STOXX 600 Utilities. On the very last trading day of 2009 Terna’s shares reached their maximum value since the IPO, €3, the only blue chip to end the year at an all-time high.

PERFORMANCE OF TERNA SHARES AND THE FTSEMib AND DJ STOXX 600 UTILITIES INDICES

PERFORMANCE OF TERNA SHARES AND THE FTSEMib AND DJ STOXX 600 UTILITIES INDICES

Source: Bloomberg.

The beginning of 2009 continued to be characterised by the fear of a prolonged global recession, which caused the world’s stock markets to lose about 35% of their value in less than three months. In the same period, however, Terna managed to hold its ground, recording only a fractional fall of 1.6%. Beginning in the middle of March, measures to shore up banks and provide liquidity led to a bullish trend that enabled share prices to recover.

Terna shares also continued their upward trend, boosted by a positive news flow connected mainly with a favourable regulatory framework – attested by the introduction, among other things, of measures aimed at mitigating the cyclical effect on the Company’s revenue of the drop in the volume of electric power transmitted – a significant increase in investment, and, especially, the Company’s intense M&A activity (the acquisition of Enel Distribuzione’s high-voltage network and the sale of the Brazilian subsidiary Terna Participações), which led to important strategic developments, such as the announcement of a photovoltaic project and a new dividend policy.

During the first few months of 2010, the economic situation remained uncertain. While the FTSEMib lost 0.8% and the European utility industry 3.8%, Terna’s shares once again confirmed their defensive nature, recording an increase of 7.3%. After the presentation of the strategic plan and the approval of the 2009 results, moreover, they reached the new all-time high of €3.23 (closing of March 26, 2010).