ITALEAF Annual Report 2014: a year with a solid growth

ITALEAF Annual Report 2014: a year with a solid growth

 Trading with Italeaf shares at NASDAQ OMX First North Stockholm started on September 4, 2014.

Highlights during the second half

 Net asset value amounted to Euro 36.3 million (Euro 2.34 per share) on December 31, 2014.

 The most significant events in subsidiaries after the listing:

 The Shareholders’ Meeting of TerniEnergia approved the capital increase with exclusion of the option rights for the purpose of the acquisition of Free Energia SpA.

 The shareholders’ meeting of Skyrobotic approved a capital increase in kind of Euro 0,97 million.

 TerniEnergia sold 50% of the shares of Energia Alternativa and Solter.

 The Board of Directors proposed a dividend of Euro 0.08 per share, corresponding to a total amount of approximately Euro 1.2 million.

Financial information

 Consolidated net profit for the year was Euro 5.5 million under in accordance with IFRS (Euro 2 million under Ita Gaap for the Italeaf parent company).

 Core Investments contributed Euro 33.9 million to net asset value during 2014, of which TerniEnergia (listed) Euro 29.37 million.

 Net revenues amounted to Euro 96.2 million in accordance with IFRS (Euro 3.3 million under Ita Gaap for the Italeaf parent company).

 Total NFP amounted to Euro 124,7 million in accordance with IFRS (Euro 12.6 million under Ita Gaap for the Italeaf parent company); Equity was 79.1 million in accordance with IFRS (Euro 28.8 million under Ita Gaap for the Italeaf parent company)

2014 was a very positive year for Italeaf, the first italian company builder, both in terms of financial performance, overall creating value for shareholders and the progress made on the start-ups subsidiaries aimed at starting the condition for additional growth in the years to come.

Commenting on the result, Chairman Mr. Stefano Neri says:

”Italeaf was born to imagine the future and to create new industrial players that, in the manufacturing and technology industrial sectors with greater value added, have the skills and the ability to generate value with their innovative challenges. The short term cycles of business and the expansion of the areas of competition, make it useful to identify and develop new business ventures often promoted by very skilled innovators, engineers, inventors who don’t have the same experience of business and financial management. Although 2014 was a year characterized by a negative macroeconomic environment, Italeaf has made significant progress in implementing

its project through new initiatives and investments. The year closed with a profit and allows the distribution of an interesting dividend. In the next month of May, Italeaf will present in Stockholm its new triennial business plan. In our strategic planning we want to clearly state our determination to continue to strengthen the Group’s growth, with a sense of ethics, in a sustainable way and to create value for shareholders.

Vision

We turn technological start-ups into successful global companies, through a “company builder” business model.

Business concept

Italeaf selects or creates new initiatives in clean-tech and innovative industrial sectors. We offer to technological start-ups and innovative companies an integrated approach that put together services, mentoring, expertise, instruments, and facilities, everything aimed to boost the industrialization of what was just an idea. We provide initial equity and corporate assistance to launch our start-ups, making them grow up to consistent businesses generating revenue and sharing profits, reducing risk.

Objective

The investment policy of the Company is to generate returns, in the form of both capital appreciation and income to shareholders, through investing in a portfolio of businesses. While not constricted geographically, given the background and experience of management, it is expected that the majority of capital invested will be in businesses operating in Europe, with a particular focus on Italy.

Investments outside Europe will be considered where the Board believes the opportunities are particularly attractive. The Company will look to invest in businesses with underlying themes of strategic market position and strong growth.

Build the net asset value

The net asset value amounted to Euro 36.3 million at year-end 2014.

Dividend policy

Our dividend policy is to distribute a large percentage of the dividends received from the subsidiaries, as well as to make a distribution from other net assets corresponding to a yield in line with the equity market”.