Alerion Clean Power : The Board of Directors approves 2013 Results

Informal translation of the Italian press releasePRESS RELEASE

Milan, 17 March 2014

Alerion Clean Power S.p.A.:

The Board of Directors approves 2013 Results 1

Proposed dividend:

€ 0.08 per share in cash plus 1 share for every 100 shares held

2013 key figures (compared to 2012):

•Adjusted1Revenues of € 66.5 million (€ 66.2 million in 2012);

•Adjusted1EBITDA of € 40.8 million (€ 42.5 million in 2012)

•Adjusted1Net Result of € 0.4 million (€ 1.9 million in 2012).

•Net Financial Indebtedness (escluding derivatives) of € 239.6 million at year end, with a decrease of

€45.5 million compared to € 285.1 million at 31 December 2012.

The Board of Directors of Alerion Clean Power S.p.A. examined and approved 2013 financial statements, prepared according to the principles of International Accounting Standards/International Financial
Reporting Standards (IAS/IFRS).

1 It should be noted that on 31 December 2013, the consolidation of Alerion Clean Power SpA changed compared to the previous year, due to the sale of the biomass and photovoltaic plants. Therefore, in order to facilitate the understanding of the performance of 2013 are also shown the results of the operations included in the scope of consolidation at December 31, 2013 ("Adjusted Economic Results"), excluding the results relating to the biomass and photovoltaic companies and other minor transactions of an exceptional nature relating to photovoltaic sector.

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2012Economic results (€ million) 2013
84.4 Revenues 68.2

76.1 - Energy revenues 63.1

- - Revenues for the construction fot the third parties 3.1

8.3 - Other revenues 2.0

54.5 EBITDA 41.0
3.6 Net income / (loss) (0.3)
4.1 Net income / (loss) attributable to the Group (0.8)
2.6 Net income / (loss) of the Holding, Alerion Clean Power S.p.A. 1.6

2012Adjusted economic results (€ million) 2013
66.2 Revenues 66.5

63.6 - Energy revenues 61.5

- - Revenues for the construction fot the third parties 3.1

2.6 - Other revenues 1.9

42.5 EBITDA 40.8 (1.9) Net income / (loss) 0.4

31.12.2012Financial position results (€ million) 31.12.2013
138.3 Shareholders' equity attributable to the Group 141.8
332.3 Net Financial Indebtness 270.0
285.1 Net Financial Indebtness (excluding fair value of derivatives) 239.6
1. 2013 Operational Highlights

Operating performance in 2013 was mainly characterized by:
• the focus of operational activities in the wind sector, following the sale of photovoltaic and biomass plants;
• the start up of wind farm development and construction business for third parties (wind plant of
Manfredonia);
• a significant reduction of Net Financial Indebtedness
Operational performance during the year 2013 has been also influenced by a trend of wind speeds lower than seasonal averages, particularly during the last quarter of 2013. In fact, revenues of wind farms in the fourth quarter of 2013 amounted to € 13.3 million compared to € 18,5 million achieved in the fourth quarter of 2012.
In this regard, in assessing the Company's performance and determining the remuneration policy for shareholders, the Company intends to consider the profitability of the operating plants in the medium- long term, even if the seasonal patterns of wind may considerably influence economic performance of

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single terms. In light of this, the Company has determined to maintain a stable remuneration policy for shareholders, proposing a dividend in line with that of previous years .
2. 2013 Consolidated results

2013 Energy Revenues amounted to € 63.1 million (€ 76.1 million). This change is attributable in particular to the following factors:
• the absence in 2013 of revenues of Anagni biomass plant of approximately EUR 9.3 million in
2012, following the sale of the company Bonollo Energia SpA in December 2012,;
• the absence of revenues realized by the photovoltaic plants in the second half of 2013, due to the sale of the photovoltaic plants occurred in 2013. In 2013, these revenues amounted to € 1.6 million, while in 2012 amounted to € 3.2 million;
• the reduction in revenues from of operating wind farms for € 2.1 million.
In particular, Adjusted energy revenues in 2013 amounted to € 61.5 million (€ 63.6 million in 2012). The decrease of € 2.1 million compared to 2012 is attributable to a decrease in electricity production over the previous year of about 8,544 MWh, caused by an average performance of the wind below the seasonal averages in particular in Puglia, Campania and Molise in the last quarter of 2013, and to the reduction in the average selling price of electricity and green certificates of about 2% (approximately 3.0
Euro per MWh), compared to the same period in 2012.
It is also noted that Revenues for the construction for third parties in 2013 amounted to approximately € 3.1 million (none in the previous year) .
Other Revenues in 2013 amounted to € 2.0 million (€ 8.3 million in 2012). The change from last year is primarily due to the recognition in 2012 of the gain on the sale of Anagni biomass plant amounting to
€4.8 million and the gain on the sale of photovoltaic project of Gioia del Colle of € 0.6 million.
EBITDA in 2013 amounted to € 41.0 million (€ 54.5 million in 2012) and includes the margin on construction for third parties of € 1.3 million. In particular, Adjusted EBITDA amounted to €40.8 million, a decrease of € 1.7 million compared to the same figure for 2012. This change is mainly attributable to the reduction in revenues from electricity production of wind farms, partly offset by the margin on construction for third parties and the reduction of operating costs following contractual
renegotiations with O&M providers, optimization of overhead costs and staff reduction.

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EBIT in 2013 amounted to €19.5 million (€28.2 million in 2012) and includes depreciation and amortization of €21.5 million (€26.3 million in 2012), which decrease compared to 2012 is primarily due to the deconsolidation of assets sold and lower amortization related to the sale of the biomass plant in Anagni, partially offset by higher depreciation related to the plant of San Marco in Lamis, fully operational in 2013.
Profit before tax in 2013 amounted to € 1.3 million (€ 7.2 million in 2012) and includes net financial expenses of € 19.0 million.
2013 Net Result is negative for € 0.3 million (positive of € 3.6 million in 2012). In particular, the
Adjusted Net Result is equal to € 0.4 million (€ 1.9 million in 2012).
Net result of the Group of 2013 is negative for € 0.8 million (positive for € 4.1 million in 2012).
Net Financial Indebtedness as of 31 December 2013 was €270.0 million (with an decrease of €
62.3 million compared to 31 December 2012). Net Financial Indebtedness includes financial debts relating to the fair value of interest rate swaps on project financing equal to € 30.5 million (€ 47.2 million at 31
December 2012). Therefore, Net Financial Indebtedness of the Group, escluding fair value of interest rate swaps, amounts to € 239.6 million at 31 December 2013 (€ 285.1 million at 31
December 2012). At 31 December 2013, financial leverage, expressed as the ratio between net borrowings and net invested capital, was 65.1 % (70.3% at 31 December 2012).
Net Invested Capital at 31 December 2013 amounted to € 415.0 million (€ 472.8 million at December
2013). Group Net Equity at 31 December 2013 amounted to € 141.8 million, an increase of €
3.5 million from December 2012. The change is primarily due to i) the loss for the period of € 0.8 million, ii) the distribution of dividends for € 5.2 million, iii) the change in the fair value of derivatives , net of tax, for € 10.4 million, and iv) the purchase of treasury shares for € 0.3 million.
3. Results of Alerion Clean Power S.p.A. as at 31 December 2013

For the parent company Alerion Clean Power S.p.A., the year 2013 ended with a net profit of € 1.6 million
(€ 2.6 million in 2012). It should be noted that the Board of Directors has resolved to propose to the
Shareholders' Meeting to carry forward the net profit of 2013, subject to provision of legal reserve.

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Shareholders' equity at 31 December 2013 amounted to € 202.4 million. The decrease of € 4.0 million compared to 31 December 2012 is mainly due to the distribution of dividends of € 5.2 million, the purchase of treasury shares for € 0.3 million and profit of the year of € 1.6 million.
4. Significant events following 31 December 2013 and foreseeable evolution

Significant events after 31 December 2013

There have been no material events subsequent to year end.

Foreseeable evolution
The current configuration of Alerion is the result of a strategic path aimed at increasing and optimizing the Company's return on investment. Currently the Company is focused on the operation of its portfolio of wind farms on the one hand and the development, engineering, construction and management of third party facilities on the other.
In 2014, Alerion shall continue in the path of growth in the construction of facilities for third-party investors and place particular focus on energy efficiency systems for both generation and distribution in the renewable energy space. Furthermore, the Group will continue to pursue an increase in the profitability of its plants by actively managing its portfolio of industrial activities and by further improving operating efficiency.
6. Shareholders' Meeting and dividends

The Board of Directors has resolved to call the annual Shareholders' Meeting for April 30 and May 6,
2014, respectively on first and second call. The Shareholders' Meeting will be asked to approve the 2013 financial statements and the proposal to distribute a dividend (June 16, 2014 as the coupon date and June 19, 2014 for the payment) part in cash and part through the allotment of the treasury shares held by the company as follows:
• for the part in cash: € 0.08 per ordinary share (net of treasury shares), allocating for this purpose part of the reserve called "Retained earnings" in the amount of approximately € 3.5 million;
• for the part in shares: 1 share for every 100 ordinary shares. The resulting fractional allotment rights at each depositary will be paid for through an authorized intermediary, without charges, fees or other charges payable by the Shareholders .

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7. Substitution of a member of the Board of Administrators

The Board of Directors also co-opted pursuant to art. 2386, paragraph 1 of the Civil Code, Mr. Giorgio Pernici, in the role of Director in replacement of Mr. Antonio Marino, who resigned on February 3, 2014. Mr. Pernici currently holds the position of General Manager of Banca MPS Capital Services.
The documentation relating to items on the agenda of the Sharehoders' Meeting will be made available to the public as required by law.

Pursuant to Article 154-bis, paragraph 2, of the Unified Financial Act, the manager responsible for preparing the company's financial reports, Stefano Francavilla, declares that the accounting information

contained in this press release corresponds to document results, book and accounting records.
Press contacts:
Investors and Analysts contacts:
Image Building
Simona Raffaelli, Emanuela Borromeo alerion@imagebuilding.it
Tel. +39 02 89011300

StefanoFrancavillastefano.francavilla@alerion.itTel.+39027788901

LucaLunghiniLuca.lunghini@alerion.itTel.+39027788901

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CONSOLIDATED FINANCIAL STATEMENTS - Reclassified Income Statement of (€ million)

2013 2012*

Energy revenues 63.1 76.1

Contract revenues 3.1 - Other revenues 2.0 8.3

Total revenues 68.2 84.4

Pers onnel cos ts (4.6) (5.3) Contract cos ts (1.8) - other operati ng cos ts (20.8) (24.6)

Operating costs (27.2) (29.9) Gross operating margin (EBITDA) 41.0 54.5

Depreci a ti on a nd I mpa i rment of as s ets (21.5) (26.3)

Net operating margin (EBIT) 19.5 28.2

Fi na nci a l i ncome a nd expens es a nd from i nves tments (18.2) (21.0)

Earnings before taxes (EBT) 1.3 7.2

I ncome ta x (1.6) (3.6)

Net income / (loss) (0.3) 3.6

Net i ncome / (l os s ) attri buta bl e to mi nori ti es 0.5 (0.5)

Net income / (loss) attributable to the Group (0.8) 4.1

(*) Fol l owi ng the retros pecti ve a ppl i cati on of the a mendment to I AS 19 from 1 Janua ry 2013, the 2012 compara ti ve fi gures were res ta ted a s requi red by I AS 1

CONSOLIDATED FINANCIAL STATEMENTS

- Reclassified Statement of Financial Position (€ million)

(€ mi l l i on) 31 December

2013

31 December

2012*

(*) Fol l owi ng the retros pecti ve a ppl i ca ti on of the a mendment to I AS 19 from 1 Ja nua ry 2013, the 2012 compa ra ti ve fi gures were res ta ted a s requi red by I AS 1

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CONSOLIDATED FINANCIAL STATEMENTS

- Net Fi nanci a l Indebtednes s (€ mi l l i on)

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