Share performance

In 2011, the European stock markets recorded strong negative trends owing to the worsening of the economic situation, characterized by a weak economic recovery and by high unemployment rates. The lasting crisis of the sovereign debt called for new economic stimulus plans on the part of governments and contributed to creating further instability among investors and increasing the volatility of exchanges.

In this context and despite the negative impact of the increased taxes in August 2011 (extending the Robin Hood Tax to the electricity transmission sector), the defensive nature of Terna’s shares allowed registering a performance that was better than that of the Italian Blue Chips (Terna -17.6% vs FTSE-MIB -25.2%). The share’s average daily volume was equivalent to approximately 10 million shares traded, decreasing with respect to last year. 

Terna’s share performance and FTSE MIB and DJ STOXX 600 Utilities index performance

Terna's share performance

Source: Bloomberg. Data as of March, 30 2012

From its listing (June,23 2004) to the end of 2011, Terna’s shares had an appreciation of 53.2%, compared to the negative performance of FTSE-MIB equal to 45.9%.

In the first quarter of 2012, Terna recorded a rise of 16%, definitely out-performing both the market (FTSE-MIB +6%) and the European reference sector (DJ Stoxx Utilities +2%).

Total shareholder return

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

In terms of total shareholding return, in 2011, Terna over-performed the index of Italian Blue Chips (Terna -11.4% vs. FTSE-MIB -22%).

Since listing to the end of 2011, the TSR that reached 140.6%, in net counter-trend compared to the average return of Italian Blue Chips that in the period lost 27.4%.

Dividends distributed by Terna S.p.A. (1) Year Ex-dividend date Payment

Dividend
(euro )

Interim dividend 2004 2004 October 18 October 21 0.045
Dividend balance 2004 2005 May 23 May 26 0.070
Interim dividend 2005 2005 November 21 November 24 0.050
Dividend balance 2005 2006 June 19 June 22 0.080
Interim dividend 2006 2006 November 20 November 23 0.053
Dividend balance 2006 2007 June 18 June 21 0.087
Interim dividend 2007 2007 November 19 November 22 0.056
Dividend balance 2007 2008 June 23 June 26 0.095
Interim dividend 2008 2008 November 24 November 27 0.0592
Dividend balance 2008 2009 June 22 June 25 0.0988
Interim dividend 2009 2009 November 23 November 26 0.07
Dividend balance 2009 2010 June 21 June 24 0.12
Interim dividend 2010 2010 November 22 November 25 0.08
Dividend balance 2010 2011 June 20 June 23 0.13
Interim dividend 2011 2011 November 21 November 24 0.08

 

(1) Terna has adopted a policy providing for the payment of dividends twice a year.

Terna’s concern for its shareholders

Terna’s concern for its shareholders has enabled the Company to create a solid, enduring, and internationally diversified shareholder base over the years. This shareholder base now includes more than 470 funds with a medium-long investment time horizon and nearly 115,000 individual investors. Foreign institutional investors are located in 39 different countries, with North American ones being the most numerous (over 18% of the total).

Socially responsible institutional investors have become increasingly significant. 95 such institutions are indeed present in the shareholder register (compared to 32 in 2005) and their weight in the share capital has increased from 2% in 2005 to over 11%.

Terna's shareholder base according to geographical area

Suppliers by geographical area