FINANCIAL STATEMENT - CLOSING
ACCOUNTS ON 31 DICEMBRE 2013
ITALEAF S.p.A.
Based in Narni, Strada dello Stabilimento, 1 Capitale sociale Euro 15,000,000.00 fully paid up
Cod.Fiscale Nr.Reg.Imp 01456730553 Registered in the Register of Enterprises di TERNI
Nr. REA TR - 98422
Italeaf S.p.A.
Financial Statement as at 31 December 2013 1
TABLE OF CONTENTS
Corporate bodies
Business Management Reporting
Mission and activities of the company and main events of the year
Economic performance and statement of assets and liabilities - budget
Investments
Research and development activities
Relations with correlated parts
Economic trend of subsidiary companies
Own shares
Additional information:
Significant events after the closure of accounts
Expected evolution of business activity
Proposal of the Board of Directors
Financial Statements
Statement of assets
Statement of liabilities
Income statement
Italeaf S.p.A.
Financial Statement as at 31 December 2013 2
Explanatory Notes
SECTION 1: Form and content of financial statements
SECTION 2: Basis of preparation of financial statements and accounting
policies
SECTION 3: Analysis of balance sheet items and related changes
SECTION 4: More information
Italeaf S.p.A.
Financial Statement as at 31 December 2013 3
CORPORATE BODIES AND THE AUDITING COMPANY
The Board of Directors:
Chairman Prof. Avv Stefano NERI
CEO Dott.ssa Monica Federici
Deputy Executive Officer Cav. Ivano EMILI
Board of Auditors:
Chairman Dott. Vittorio PELLEGRINI
Statutory auditor Dott. Marco CHIERUZZI
Statutory auditor Dott. Paolo SEBASTIANI
External Auditors:
PriceWaterhouseCoopers S.p.A.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 4
BUSINESS MANAGEMENT REPORTING
Italeaf S.p.A.
Financial Statement as at 31 December 2013 5
MISSION AND ACTIVITIES OF THE COMPANY AND MAIN EVENTS
OF THE YEAR
ITALEAF S.p.A. arises from the transformation in stock company of Nuova TIC Srl, a limited
company incorporated on 28 December 2010 and owner of the industrial site in Narni - Nera
Montoro of over 35 acres with several buildings which host the main companies of the group Terni
Research SpA to which the Company belongs in fact..
ITALEAF S.p.A. was founded with the goal of creating a new "startupper Company" Italian focused
on the Green Economy sector that supports and sustains the creation of enterprises in the field of
green, circular economy and sustainable industry.
The Company joins the traditional activities of property management services and supply of available
spaces equipped with different services and utilities, a new corporate structure, unprecedented in
Italy, created in support of new businesses or existing businesses with the intent to facilitate the
evolution in business with a propensity to achieve size and industrial characteristics.
ITALEAF S.p.A. pursues the creation of value through the construction, the affi rmation and the
development of "a green Italian industry", a place of convergence and community for entrepreneurs,
startuppers, spin-offers, mentors, investors, advisors, consultants and partners.
Objective of ITALEAF is to make replicable this model in order to start the construction of a
national network.
Main events of the year:
Partial inversely proportional demerger of Terni Research S.p.A. in ITALEAF S.p.A.
On 6 November 2013 was filed in the commercial register of Terni the partial inversely proportional
demerger of Terni Research SpA in ITALEAF S.p.A. with the aim of simplifying the corporate
structure while also ensuring greater uniformity of the activities of the Group, in order to develop
future strategies for growth.
Terni Research SpA since its establishment has always carried out the promotion of new industrial
initiatives investing its own resources in enterprises characterized by strong growth in new sectors
(especially the Green Industry) for up to capitalize the value through listing operations as in the case
of TerniEnergia and TerniGreen S.p.A..
Italeaf SpA, conversely is the beneficiary of the transaction, as wholly owned subsidiary of Terni
Research SpA, is a startupper company that supports and sustains the creation of enterprises in the
fields of green and circular economy and sustainable industry.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 6
The partial demerger of Terni Research with the transfer of the most significant part of its assets
(mainly consisting of all shareholdings) to the subsidiary Italeaf therefore allows the simplification of
the corporate structure with a shortening of the chain of control with regard to Italeaf SpA, which is
configured as a new group holding company. The following shows the structure of the Group Ante
and Post demerger
Group Structure - Ante Demerger
56,07%
0,6% 83%
100%
13%
52,14%
Skill & Trust
Italeaf S.p.A.
Financial Statement as at 31 December 2013 7
Group Structure - post Demerger
The demerger also allows to catch a strategic objective for the Group. With the demerger is reached
the result of combining the activities of "startupper company" of Italeaf with the role of investor of
Terni Research, speeding up and making more streamlined the process of growth of new businesses
and limiting intra-group transactions. This result responds effectively to the strategic needs of the
Group, whose business model is based precisely in conducting their own investment activities in the
most interesting enterprise initiatives being identified within the activity of Italeaf, in order to
replicate what has already been achieved with TerniEnergia and TerniGreen.
The increased uniformity of the activities of the Group which is realized by the demerger therefore
allows to best meet the objectives of its business model and represents the distinctive character of
the initiatives that the Group's management intends to present to the financial community through
the listing of Italeaf (after the division) on the capital market.
In fact, the new post division structure of Italeaf represents a unique business model of its kind, by
combining in one entity the function of identification and development of new strong growth &
innovative industrial initiatives, with that of capital raising for the development of the same
initiatives. The business model is based on the possibility of ever being able to attract new
businesses, thanks to the significant facilities available to Italeaf (both real estate investments and of a
professional nature) and on the replicability, with the development of more initiatives, the value of
which will be implemented by the Group through a possible IPO or a sale of the same holding in
order to get new financial resources that will be used, on the one hand, to reward shareholders, on
the other hand, to support the development of new initiatives.
From the accounting point of view the assets and liabilities subject to assignment of Italeaf SpA,
54,8% 84,7%
52,14%
52,14%
Italeaf S.p.A.
Financial Statement as at 31 December 2013 8
have a value equal to Euro 30,662,391.27.
As a result of the demerger therefore the net equity of Italeaf SpA, will increase by an amount equal
to the net book value of the assets that make up the Demerged Entity other than the participation in
ownership of TERNI Research S.p.A. into the capital of Italeaf SPA which carrying value amounts
to Euro 23,607,737.00.
Therefore, the net equity value of Italeaf SpA, will increase, as a result of the demerger, for Euro
7,054,654.27 and this increase will be allocated to reserves, remaining the same the share capital.
The transaction was completed on February 13th 2014 with the registration of the demerger deed in
the commercial register of Terni.
BUSINESS AS STRATUPPER COMPANY
The Company as part of its activities as "startupper company" has promoted several business
ventures from which the following information:
GREENLED INUSTRY S.P.A.
In July 2013, the Company entered into a share capital increase with exclusion of option rights in the
Company GreenLed Industry SpA; the increase undersigned amounted to Euro 2,500,000 which was
released through the transfer of certain real estate properties. At 31 December 2013, the
shareholding in GreenLed Industry SpA amounted to the 73.53% of the share capital.
The company GreenLed Industry S.p.A. is a manufacturer of lighting fixtures with LED technology,
both for street and industrial area use.
The lighting fixtures are certified by independent laboratories recognized nationally and
internationally in accordance with the industry regulations in force. In particular, the lighting fixtures
are characterized by their certification in order to operate with temperature and weather extreme
conditions (up to 75 ° C in "dirty” environments); furthermore they allow energy savings that can
reach 60% compared to the old technologies.
SKYROBOTIC S.R.L.
On 21 December 2013, the Company entered into an investment of € 530,000 corresponding to
51.46% of the share capital in the company newly established called Skyrobotic Srl ; the Company
will be active in the study, design, development, engineering and production of UAV (Unmanned
Aerial Vehicle) and in particular applications of unmanned robotic technology such as the
development of robotic unmanned aircrafts, both with fixed wing and rotary-wing.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 9
ITALEAF U.K. LTD
The Company has established a subsidiary in the United Kingdom in order to facilitate the expansion
of its business model on the foreign market.
ARCHITECTURAL AND ENVIRONMENTAL REGENERATION PROJECT
INDUSTRIAL SITE OF NERA MONTORO- ECO-INDUSTRIAL PARK
During the financial year ended on December 31 2013, the Company outsourced the Polytechnic of
Milan - Department of Architecture and Planning-a case study on the design of a strategic
masterplan for the environmental and architectural regeneration of the Nera Montoro Industrial site.
The intent of the project is to define a new Energy Park dedicated to the production and disclosure
of the main activities of the companies Ternienergia SpA and Italeaf SpA, engaged in the production
of energy from renewable sources. The aim is also to enhance the existing site redeveloping, where it
is possible to recognize the architectural value, those artefacts and those areas currently obsolete or
disused; at the same time it was decided to intervene in a timely manner with new architectural
interventions, deemed necessary for the definition of a unitary system.
The main theme of the project is an attempt to establish an ongoing relationship between the factory
and the natural surroundings, considering the factory is not such as alien element in contrast to the
surrounding hilly landscape, but as an integral part of it.
The main interventions, at least in the first phase would cover the construction of a new access road
through the industrial area and the redesign of existing open spaces, the reorganization of the
parking areas, the inclusion of some architectural volumes containing some functions deemed
necessary (quarters, new cafeteria, fitness area) and the relocation of some existing small retail
businesses, already existing in the area; the construction of a new research centre devoted to
laboratory activities made of different sizes and heights, illuminated differently and appropriately
divisible or equippable.
Finally, the redevelopment and enhancement of 'the spherical ampulla", once used for storing
ammonia, now symbol of the industrial past.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 10
RISKS ASSOCIATED WITH THE ACTIVITY'
The activities carried out expose the Company to the following risks: credit risk, liquidity risk and
market risk. The operating and financial policies of the Company are aimed, among other things, to
minimize the negative impact of such risks on the financial performance of the Company.
The main risks are reported and discussed at the level of key management of the Company in order
to create the conditions for their coverage and assessment of the residual risk.
Credit Risk
The credit risk is related to liquid assets, financial receivables and trade receivables.
It is the policy of the Company, within the course of business, to operate exclusively with proven
financial strength.
The company since 31 December 2013 had a limited operating activity represented mainly by
services rendered inside of the industrial property in respect of the Group Companies and not.
Consequently, the credit risk to which the Company is subject, it is considered as a whole limited, in
consideration of the monitoring of the status of receivables periodically performed by the Company .
Here below is a table that summarizes the Company's maximum exposure to credit risk at 31
December 2013 and 2012.
31 December 31 December Difference
(in Euro) 2013 2012
Trade receivables
1,271,701 623,292 648,409
Total trade receivables 1.271.701 623,292 648,409
The prospects in the recovery of outstanding receivables are valued position by position. All
receivables at the balance sheet date for which there is a possibility of a loss have been written down.
With regard to the changes in the provision for bad debts, please refer to the Explanatory Notes.
With regard to bank deposits, it should be noted that the Company operates, on an ongoing basis,
with a primary credit standing, with an acceptable credit rating, thus limiting the associated credit
risk.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 11
Liquidity Risk
Liquidity risk is the risk that financial resources may not be available or only available at a high cost
that would result in significant impact on the income statement.
The Company's objective is to ensure the ability to meet at any time its financial obligations,
maintaining an adequate level of liquidity through the increase of the share capital and obtaining
adequate credit lines.
The Company provides through the cash budget the measurement, the management and daily
monitoring of the liquidity risk; through the cash flow budget is in fact carried out the planning and
forecasting of daily liquidity.
For the analysis of liquidity risk, the financial liabilities include trade payables and other financial
liabilities.
The following table provides a breakdown of the financial liabilities as at 31 December 2013 and
2012.
31 December 31 December Difference
(in Euro) 2013 2012
Trade payables
3,348,176 2,198,665 1.149.511
Payables and other financial liabilities 2,219,977 -2,219,977
Total trade payables and financial 3.348.176 5,568,153 -1,070,466
Trade payables are in the short or include trade payables relating to the supply of goods and services .
At December 31 2013 debts and other financial liabilities were represented by an overdraft revoked
current account and by the debit balance of the bank current account of Terni Research SpA.
The risk of withdrawal of credit lines is constantly monitored through periodic revaluation of the
existing credit grantors and the credit institutions with their renewal.
Market Risks
Risk of interest rate
Italeaf S.p.A.
Financial Statement as at 31 December 2013 12
The interest rate risk to which the Company is exposed is mainly regulated by the financial assets and
liabilities with floating rates plus a spread. In particular, receivables and payables at variable rates
expose the Company to a risk arising from interest rate volatility. The Company did not consider it
appropriate to establish specific financial instruments to hedge interest rate risk in that, considering
the current level of financial indebtedness, the same would be, on the whole, particularly
burdensome in relation to the potential benefits. The Company's financial results are therefore
affected by interest rates. In order to illustrate the potential resultant volatility of the Company's
exposure to interest rate risk, in the following table are presented the effects on the income
statement for the financial of December 31, 2013 and 2012 related to a change of one (1) percentage
point of interest rate, net of tax effects:
31 December 31 December
Interest
Risks (Euribor)
Interest Risks (Euribor)
Rischi
interesse (Euribor)
accounting value +100 bp -100bp
accounting value
+100 bp -100bp
Payables and other financial liabilities 2,219,977 22,200 -22.200 950,675 9,507 -9.507
Impact on gross financial liabilities 22,200 -22,200 9.507 -9,507
fiscal effect 27.50% -6,105 6.105 27.50% -2,614 2.614
Impact on net financial liabilities 16,095 -16,095 6.892 -6,892
Currency Risk
The Company is not exposed to currency risk, as all operations are carried out in euros.
Managing of the capital risk
The capital is managed in such a way as to ensure that the Company is able to continue its business
while maximizing paybacks for shareholders.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 13
STATEMENT OF INCOME AND FINANCIAL POSITION
The financial results for the year are summarized in the following table shown:
31 December 31 December (in Euro) 2013 2012
Economic data
Net revenues from sales and services 2,116,008 3,990,542 EBITDA -612,778 -990,848 EBIT -1,386,262 -1,854,358 Result for the period -563,368 725,168
Financial data Net working capital -337,184 -867,196
Fixed assets, net of funds 22,348,774 22,137,866 Net financial position at short 2,212,684 908,397 Own resources 19,798,906 20,362,273
Reclassified income statement
(in euro) 2013 2012
Net revenues from sales and services Revenues from sales and services 1,741,384 3,488,143
Other revenues and income 374,624 502,399
OPERATING REVENUES 2,116,008 3,990,542
Production costs Raw materials 15,907 30,005
Services 1,752,201 3,860,360 Rentals and leases, use of third party assests 134,401 95,912 Staff costs 582,040 766,030 Other operative costs 244,239 229,082
PRODUCTION COSTS 2,728,786 4,981,389
GROSS OPERATING MARGIN (EBITDA -612,778 -990,848
Depreciation, net amortization and impairment of assets 773,484 823,511 Net provisions and writedowns
40,000
OPERATING PROFIT (EBIT) -1,386,262 -1,854,358
Financial Management Balance -22,403 68,464 Net extraordinary items 1,304,024 2,942,559
EARNINGS BEFORE TAX (EBT) -104,641 1,156,665
Taxes on income 458,727 431,498
INCOME FOR THE PERIOD -563,368 725,168
Net revenues from sales and services for the financial year 2013, as reported in the reclassified
income statement shown in the "management performance, amounted to Euro 2,116,008 in respect
of costs of production for Euro 2,728,786.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 14
Following the allocation of net amortization and provisions for Euros 773,484, the operating profit
(EBIT) showed a negative balance of Euro 1,386,262.
The financial management has contributed negatively to the result for the year with a balance of € -
22,403 while the extraordinary management contributed positively for Euro 1,304,024.
Deferred and current tax assets had a negative balance of Euro 458,727 resulting in a loss for the
period of € 563,368.
Reclassified balance sheet
(in euro) 2013 2012
NET ASSETS Inventories
Receivables from clients 328,519 207,352
Other receivables 1,749,214 1,412,389
Payables to suppliers -692,423 -933,471
Other payables -1,722,494 -1,553,466
Net working capital -337,184 -867,196
Intangible assets 122,116 183,174
Tangible assets 22,141,564 24,100,410
Financial assets 7,083,774 5,142,171
Net fixed assets 29,347,454 29,425,755
Invested Capital 29,010,270 28,558,559
TFR severance indemnities -112,153 -154,193
Other funds -6,886,527 -7,133,696
Total funds -6,998,680 -7,287,889
TOTAL NET INVESTED CAPITAL 22,011,590 21,270,670
COVERINGS
Net financial position at short 2,212,684 908,397
Net financial position 2,212,684 908,397
Own resources 19,798,906 20,362,273
TOTAL COVERINGS 22,011,590 21,270,670
Net invested capital at the end of the period amounted to Euro 22,011,590; Net Fixed capital
amounts to Euro 29,347,454, net working capital had a negative balance of Euro 337,184; The
Company also presents reserves for risks and severance indemnities for € 6,998,680. . From the side
of the coverings own resources amounted to € 19,798,906 and the net financial position, better
detailed below, shows a very low indebtedness for Euro 2,212,684.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 15
Net financial position
The net financial position shows a balance of a total value of Euro 2,212,684 showing availability to
banks for Euro 6,881, an existence of cash for € 412. The Current financial debt amounted to €
2,219,977, represented by 430,156 euros from an overdraft current account and by € 1,789,821 from
the debit balance of the current account outstanding with the parent company Terni Research SpA
31 December 31 December
(in Euro) 2013 2012
Cash 412 1,332
Current bank accounts 6,881 40,946
Liquidity 7,294 42,277
Current bank borrowings (overdraft / c) -430,156 -950,674
Current account parent company -1,789,821
Current financial debt -2,219,977 -950,674
Net financial position -2,212,684 -908,397
INVESTMENTS
For the year ended on 31 December 2013, investments were made for Euro 527,170 relating to
interventions for the renovation of the industrial site in Nera Montoro.
ACTIVITY OF RESEARCH AND DEVELOPMENT
Pursuant to Article 2428, paragraph 2 number 1, it is acknowledged that in the year ended 31
December 2013 there are no expenses for research and development. Our company today does not
carry out any research and development activities as such has been completely delegated to other
Group companies.
TRANSACTIONS WITH RELATED PARTIES
In the following are presented in a summary table, the main assets and liabilities during the year
occurred with subsidiaries, affiliates, parent, other affiliated companies, associates of their direct and
indirect subsidiaries and other related parties.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 16
Name Assets Liabilities
Parent companies
Terni Research S.p.A.
Commercial: Service Contract Commercial and other: Ratio of tax
consolidation Financial:centralized treasury Financial: centralized treasury
Subsidiaries
Green Led Industry S.p.A.
Commercial and other: Service Contract
ITALEAF U.K. Ltd Commercial and other: Service Contract
SkyRobotic S.r.l.
Commercial and other: Service Contract
Associated companies
Lucos Alternative Energies S.p.A. Commercial and other: Re-debit Personal/ Service
Commercial and other: Contract for Energy Efficiency of the site of Nera Montoro
I Green Patrol S.r.l. Commercial and other: Contract: Surveillance
of the industrial site
TerniEnergia S.p.A.
Commercial and other: Re-debit utilities – Contract for the management of
remediation purification activities
Commercial and other: management of remediation purification activities
The following table shows also the equity and operating values arising from relations above.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 17
Trade and other transactions
(in euro)
Name 31.12.2013 2013
Accounts receivable
Payables Purchases for investments
Costs Revenues Purchas
es of material
s
Services
Other Services Other
Parent companies
Terni Research S.p.A. 928,154 645,182 22,400 692,000 Subsidiaries Skyrobotic S.r.l. Greenled Industry S.p.A. 1,976,042 Associated companies Terni Energia S.p.A. 6,894 282,584 572,662 167,327
Lucos Alternative Energies S.p.A. 8,134 123,594 15,000 115,260 34,130 I Green Patrol S.r.l. 14,580 24,000
Total 943,182 1,065,939 15,000 161,660 1,298,792 2,143,369
FINANCIAL DEALINGS
(in euro)
Name 31.12.2013 2013
Financial
investments
Accounts
receivables
Payables Guarantees Obligations Charges Income
Parent companies Terni Research S.p.A. 1,789,821 19,837 13,003 Subsidiaries Skyrobotic S.r.l. 397,500 ITALEAF U.K. Ltd 1,182
Associated companies Terni Energia S.p.A. Lucos Alternative Energies S.p.A.
Total 2,188,503 19,837 13,003
These reports, which do not include atypical and / or unusual transactions are governed by normal
market conditions.
Disclosures pursuant to Art. 2428, sections 3 and 4 of the Civil Code
The Company does not own and did not purchase or sell during the year own shares and / or shares
in parent companies, nor had it done through trust companies or nominees.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 18
OTHER INFORMATION
Litigations, investigations and judicial proceedings in progress
There are no legal proceedings or litigation pending against the company
SIGNIFICANT EVENTS AFTER THE YEAR END
On February 13 2014, we completed the inversely proportional demerger of Terni Research SpA in
ITALEAF S.p.A. with the allocation to it of most of the assets of the demerged Company with a
carrying amount of € 30,662,391.27.
As a result of the demerger then, the book equity of Italeaf SPA, increased by an amount of Euro
7,054,654.27, equal to the net book value of the assets constituting the Demerged Entity, other than
the participation in ownership of TERNI Research SPA in the capital of Italeaf SPA; This increase
will be allocated to reserves, remaining unchanged, the share capital .
ITALEAF SpA, also changes the corporate structure, represented by the same members of Terni
Research SpA with Skill & Trust Holding S.r.l. as reference shareholder.
In the month of February 2014 was established the Subsidiary HK ITALEAF Ltd., headquartered in
Hong Kong, wholly owned by ITALEAF SpA, that had subscribed and fully paid up the share
capital of 10,000 HKD for the purpose of supporting and facilitating the development of
international subsidiaries in emerging markets in Asia.
There were no other significant events after the balance sheet date.
BUSINESS OUTLOOK
The financial statements at December 31st 2013 showed a net worth of Euro 19,798,906, net of loss
for the period of 563,368 euros and a net cash position, which show a total debt of € 2,212,684 .
For 2014, the beneficiary Company of the reversed partial demerger of Terni Research SpA, of
which you were given full information, will change its activity, so including the management of
shareholdings and its asset consistency.
The Company in the financial year 2014, will join the activity of startupper to the management of
the industrial site in Nera Montoro, including the management of investments and service activities
on behalf of subsidiaries, expecting a profit cash flow that can cover the current and non-current
financial needs.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 19
PROPOSAL OF THE BOARD OF DIRECTORS
Dear Shareholders,
We conclude inviting you to approve the financial statements as at December 31st 2013 in the results
presented, with the proposal to allocate the profit for the period amounted to Euro 563,368 through
the use of available reserves.
Please note that the inverse partial demerger of Terni Research SpA in ITALEAF Spa, resulted in
the transfer to it of most of the company's assets, including the shareholding in TerniEnergia which
will entitle to cash in the month of May 2014 a significant dividend; in view so it is proposed the
distribution to the shareholders of ITALEAF SpA a dividend of EUR 0.08 per share, for a total of
Euro 1,200,000 on the extraordinary reserve.
Terni, 28 March 2014
To the Board of Directors AVV. Stefano Neri
Italeaf S.p.A.
Financial Statement as at 31 December 2013 20
FINANCIAL STATEMENTS
Italeaf S.p.A.
Financial Statement as at 31 December 2013 21
STATEMENT OF ACTIVE ASSETS 31.12.2013 31.12.2012
A) RECEIVABLES FROM SHAREHOLDERS FOR PAYMENTS STILL DUE (of which already mentioned)
B) FIXED ASSETS I. INTANGIBLE FIXED ASSETS 1) Installation and expansion Costs 2,566 3,848 2) Research, development and advertising costs 3) Industrial patents and intellectual property rights 1,000 1,500 to use intellectual property
4) Concessions, licenses, trademarks and similar rights 5) Start-up 118,550 177,826 6) Capital assets and payments on account 7) Other
Total I 122,116 183,174
II. TANGIBLE FIXED ASSETS 1) Land and buildings 17,325,851 19,185,626 2) Plants and machinery 4,598,206 4,835,569 3) Industrial and commercial equipment 3,074 4,347 4) Other assets 56,983 74,867 5) Capital assets and payments on account 157,450
Total II 22,141,564 24,100,409 III. FINANCIAL ASSETS 1) Shareholdings in: a) Subsidiary companies 3,031,183 b) affiliated enterprises
c) parent companies d) Other enterprises 4,000,020 5,091,905 Total 1) 7,031,203 5,091,905 2) Accounts receivable:
a) from subsidiaries - due within one financial year - due after the following financial year
- - b) from associated companies
- due within one financial year - due after the following financial year
- - c) From parent companies
- due within one financial year - due after the following financial year
d) from others - due within one financial year
- due after the following financial year 52,572 50,266
52,572 50,266
Total 2) 52,572 50,266 3) Other securities 4) Own shares
Total III 7,083,775 5,142,171
Total B) Fixed assets 29,347,455 29,425,754
Italeaf S.p.A.
Financial Statement as at 31 December 2013 22
C) LIQUID ASSETS I. LEFT-OVER STOCK 1) Raw materials, consumables and supplies 2) Works in progress and semifinished goods 3) Works in progress on contracts
4) Finished products and goods 5) Payments on account 6) Dispose of unused assets
Total I - -
II. ACCOUNTS RECEIVABLE 1) From clients - due within one financial year 328,519 207,352 - due after the following financial year
328,519 207,352
2) from subsidiary companies - due within one financial year
- due after the following financial year
- - 3) from associated companies - due within one financial year - due after the following financial year
- - 4) from parent companies
- due within one financial year 928,154 415,940
- due after the following financial year
928,154 415,940
4 bis) Tax receivables - due within one financial year 292,649 696,988
- due after the following financial year
292,649 696,988 4 ter) Prepaid taxes - due within one financial year
- due after the following financial year
- - 5) from others
a) other associated companies altre imprese consociate
- due within one financial year 15,028 295,970 - due after the following financial year
15,028 295,970 b) Others - due within one financial year - 909 - due after the following financial year
- 909
Total 5) 15,028 296,879
Total II 1,564,350 1,617,159
III. FINANCIAL ASSETS EXCLUDING FIXED ASSETS 1) Shareholdings in subsidiaries 2) Shareholdings in affiliated companies 3) Shareholdings in parent companies
4) Other shareholdings 508,924 5) Own shares 6) Other securities
Total III 508,924 -
IV. CASH AND CASH EQUIVALENTS 1) Bank and postal accounts 6,881 40,946 2) Cheques 3) Cash and valuables on hand 412 1,332
Total IV 7,293 42,278
Italeaf S.p.A.
Financial Statement as at 31 December 2013 23
Total C) Working capital 2,080,567 1,659,437
D) ACCRUALS AND DEFERRALS I. ACCRUALS 4,459 2,582 II. DEFERRALS
1)
Discounts on loans
2) Other deferrals
Total D) Accruals and deferrals 4,459 2,582
TOTAL ASSETS (A+B+C+D) 31,432,481 31,087,773
Italeaf S.p.A.
Financial Statement as at 31 December 2013 24
STATEMENT OF LIABILITIES 31.12.2013 31.12.2012
A) NET EQUITY
I. CAPITAL 15,000,000 15,000,000 II. PREMIUM RESERVE OF SHARES III. REVALUATION RESERVE IV. LEGAL RESERVE 37.640 1,382 V. STATUTORY RESERVE VI. RESERVE FOR TREASURY STOCK VII. OTHER STOCKS 1. extraordinary reserve 4.609.464 4,609,464 2. other Stocks
Total VII 4,609,465 4,609,464 VIII. PROFITS (LOSSES) B/F CARRIED FORWARD 715.170 26,259 IX PROFIT (LOSS) FOR THE YEAR (563.368) 725,168
Total A) Net Equity 19,798,906 20,362,273
B) PROVISIONS FOR LIABILITIES AND CHARGES 1) For pensions and similar obligations 2) For deferred taxes 6,886,527 7,133,696 3) Other
Total B) Provisions for risks and charges 6,886,527 7,133,696
C) EMPLOYMENT TERMINATION INDEMNITY 112,153 154,193
D) PAYABLES 1) bonds - due within one financial year - due after the following financial year
2)
Convertible bonds - due within one financial year - due after the following financial year
3)
Amounts due to shareholders for loans - due within one financial year - due after the following financial year
4) Payables to banks
- due within one financial year 430,156 950,674 - due after the following financial year
430,156 950,674 5) Debts owed to other lenders - due within one financial year - -
- due after the following financial year
6)
Advances - due within one financial year 200,000 - due after the following financial year
200,000 - 7) Debts owed to suppliers - due within one financial year 692,424 933,471
Italeaf S.p.A.
Financial Statement as at 31 December 2013 25
- due after the following financial year
692,424 933,471
8) Debts represented by securities - due within one financial year - due after the following financial year
9) Debts owed to subsidiaries
- due within one financial year 398,683 - due after the following financial year
398,683 - 10) Debts owed to associated companies - due within one financial year - due after the following financial year
11) Debts owed to Parent Companies - due within one financial year 2.434.995 754.145 - due after the following financial year
2,434,995 754,145 12) Current tax payables - due within one financial year 88,353 28,819 - due after the following financial year
88,353 28,819
13)
Payables to General government Social security funds - due within one financial year 41,451 77,316 - due after the following financial year
41,451 77,316
14) Other debts a) to other associated companies - due within one financial year 220,757 511,049 - due after the following financial year
220,757 511,049
b) To others - due within one financial year 125,729 169,497 - due after the following financial year
125,729 169,497
Total 14) 346,486 680,546
Totale D) Debts 4,632,548 3,424,971
E) ACCRUALS AND DEFERRALS I. ACCRUALS - 10,777
II. DEFERRALS 2,347 1,863
Total E) Accruals and deferrals
2,347 12,640
TOTAL LIABILITIES (A+B+C+D+E) 31,432,481 31,087,773
Italeaf S.p.A.
Financial Statement as at 31 December 2013 26
INCOME STATEMENT 2013 2012
A) REVENUES 1) REVENUES FROM SALES AND SERVICES a) Revenues from sales and services 1,741,384 3,488,143
Total 1) 1,741,384 3,488,143
2) CHANGES IN INVENTORIES OF PRODUCTS OF WORKS IN PROGRESS, SEMI-FINISHED OR FINISHED 3) VARIATION OF THE WORKS IN PROGRESS ON ORDERS 4) INCREASE IN FIXED ASSETS FOR INTERNAL WORK 134,950 5) OTHER REVENUES AND INCOME 239,674 502,399
Totale A) REVENUES 2,116,008 3,990,542
B) PRODUCTION COSTS 6) FOR RAW MATERIALS, CONSUMABLE MATERIALS AND GOODS 15,907 30,005 7) FOR SERVICES 1,752,201 3,860,360 8) FOR USE OF THIRD PARTY ASSETS 134,401 95,912 9) FOR STAFF a) Wages and salaries 447,682 563,618 b) social security charges 108,555 157,451
c) employee severance indemnities 15,057 29,785 d) retirement benefits and similar e) Other costs 10,746 15,176
Total 9) 582,040 766,030
10) AMORTIZATION AND DEPRECIATION a) amortization of intangible assets 61,058 61,058 b) Depreciation of tangible fixed assets 712,426 762,453 c) other write-downs of fixed assets d) write-down of receivables included in current assets 40,000 and cash and cash equivalents
Total 10) 773,484 863,511
11) CHANGES IN INVENTORIES OF RAW MATERIALS, ANCILLARY, CONSUMABLE AND GOODS
12) PROVISIONS FOR RISKS
13) OTHER PROVISIONS
14) SUNDRY OPERATING EXPENSES 244,239 229,082
Totale B) Production costs 3,502,272 5,844,900
Difference between value and production costs (A-B) (1,386,264) (1,854,358)
C) FINANCIAL INCOME AND CHARGES
15) INCOME FROM EQUITY PARTICIPATIONS - in subsidiaries - In affiliated companies - in parent companies
Total 15)
16) ALTRI PROVENTI FINANZIARI
Italeaf S.p.A.
Financial Statement as at 31 December 2013 27
a) from capital assets receivables: - from subsidiaries
- interdivisional interest receivables, retroactive currency, increases in share capital
- from affiliated companies
- from parent companies - from others
total a) b) From securities in fixed assets other than
equity investments c) from securities held as current assets other than equity investments d) other income from the preceding: - from subsidiaries - from affiliated companies - from parent companies - from others 46,886 85,530
total d) 46,886 85,530
Total 16) 46,886 85,530
17) INTEREST AND OTHER FINANCIAL CHARGES - to subsidiaries
-
- To affiliated companies 5,671 941 - To parent companies 63,618 16,124
Total 17) 69,289 17,065
17 bis) Profits and losses on foreign exchange
Totale C) Financial income and charges (22,403) 68,465
D) VALUE ADJUSTMENTS ON FINANCIAL ASSETS
18) REVALUATIONS a) of equity investments
b) of financial fixed assets other than equity investments c) Securities held as current assets other than equity investments
Total 18)
19) DEPRECIATION a) of equity investments b) of financial fixed assets other than equity investments c) Securities held as current assets other than equity investments
Total 19)
-
-
Totale D) Value adjustments on financial assets
E) EXTRAORDINARY INCOME AND EXPENSE
20) EXTRAORDINARY INCOME a) capital gains from disposals 1,976,042 2,942,559 b) depollution of fiscal interferences c) other operating income 124,720 d) rounding figures
Total 20) 2,100,762 2,942,559
21) EXTRAORDINARY EXPENSES a) losses from disposals
Italeaf S.p.A.
Financial Statement as at 31 December 2013 28
b) taxes relating to prior periods c) charges for early retirements d) depollution of fiscal interferences e) Other charges 796,736
Total 21) 796,736
Totale E) Extraordinary income and expenses 1,304,026 2,942,559
Profit before taxation (A-B+/-C+/-D+/-E) (104,641) 1,156,666
22) TAXES ON INCOME OF THE PERIOD
CURRENT ASSETS ,DEFERRED AND ANTICIPATED a) current taxation 705,896 626,083 b) Deferred tax assets and liabilities (247,169) (194,585)
Total 22) 458,727 431,498
Profit (loss) for the financial year (563,368) 725,168
Italeaf S.p.A.
Financial Statement as at 31 December 2013 29
EXPLANATORY NOTES
Italeaf S.p.A.
Financial Statement as at 31 December 2013 30
SECTION 1
Form and content of the financial statements
The financial statements for the year ended on 31 December 2013, submitted for your approval,
consists of: Balance Sheet, Income Statement and Explanatory Notes.
With regard to the activities of the company and significant events occurring after the reporting
period see the Management Report. Please also refer to the detailed information on relations with
subsidiaries, affiliates, parent companies and companies subject to control by the latter, other related
parties and affiliated of subsidiaries, and the relations with the company engaged in the business of
management and coordination, and with the other companies subject to it.
The financial statements and the explanatory notes are expressed in euro .
The financial statements have been subjected to an audit by PricewaterhouseCoopers SpA. We also
report that the Company does not issue consolidated financial statements making use of the
exemption envisaged by Art. 27 of Legislative Decree 127/1991; In fact, the company is subject to
the control of Skill & Trust Holding Srl, based in Terni, Via Garibaldi 43, which provides for the
drafting of the consolidated financial statements.
SEZIONE 2
Basis of preparation of the financial statements and assessment criteria
The criteria used in preparing the financial statements comply with applicable laws and regulations
mentioned above, integrated and interpreted by national accounting standards issued by the National
Board of Certified Public Accountants as well as by the Italian Accounting Body.
The assessment of the budget items was made based on general criteria of prudence and
competence, on a going concern basis and taking into account the economic function of the assets
and liabilities.
The application of the principle of prudence has led to the evaluation of the individual components
of the single entries or items of assets or liabilities, in order to avoid any offset of losses that should
be recognized and profits not to be recognized because unrealized gains.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 31
In accordance with the principle of competence, the effect of transactions and other events has been
accounted for and allocated to the financial year to which such transactions and events are related,
and not to the period in which the related cash (receipts and payments) are effectively made. Profits
are included only if realized by the closing date of the period, while taking account of the risks and
losses even if known later.
Heterogeneous elements included in each budget item were evaluated separately. Assets intended for
long-term use are classified as fixed assets.
The continuity for the application of the assessment criteria over time is necessary to ensure the
comparability of financial statements of the company over the financial years .
The assessment taking into account the economic function of the assets and liabilities which
expresses the principle of substance over form - obligatory unless otherwise in conflict with other
specific rules for the financial statements - allows the representation of the operations looking at that
the economic reality underlying the formal aspects.
INTANGIBLE FIXED ASSETS
Are recorded at the cost of acquisition or internal production, including the imputable ancillary
charges and are shown net of any accumulated amortization, being calculated on a constant measure
depending on the residual useful life of the asset.
Intangible assets that, at the financial year end, have a permanent impairment in value lower than that
represented in the financial statements will be reported at such lower value.
If and when the causes that gave rise to impairment losses are restored, the values of the fixed assets
within the limits of the writedowns made, taking account of the depreciation accrued. The writeback
is not made for starting-up and deferred costs.
The costs for Installation and expansion, research, development and advertising, if proven as long-
term benefits, are capitalized prior consent of the Board of Statutory Auditors and amortized over
the period of their useful economic life, and in any case no longer than 5 years.
The Industrial patents, trademarks and rights to use intellectual property are recorded at acquisition
cost and are amortized on a systematic basis in accordance with the contractual period of use.
Other deferred charges relate to costs for future benefits, and are systematically amortized over 5
years. The start-up, if acquired for valuable consideration, is registered, including the possibility of
recovery through future revenues generated by the same company (or business unit), with the
consent Board of Statutory Auditors within the limits of the incurred cost.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 32
TANGIBLE FIXED ASSETS
Are recorded at the purchase cost or manufacturing cost, including imputable accessory charges, net
of amortization.
Tangible fixed assets which, at the financial year end, have a permanent impairment in value lower
than that represented in the financial statements, will be reported at such lower value. If and when
the causes that have generated the write-downs are reset to the values of the fixed assets within the
limits of the write-downs made taking account of the depreciation accrued.
The costs of maintenance are charged in the income statement when those costs, except those
having an incremental nature, are capitalized.
Amortisation is calculated on a straight-line using the rates considered representative of the estimated
economic useful life of the assets.
The amortization rates used are as follows
Rates
Buildings
Industrial buildings 3%
Industrial and commercial equipment
Industrial and commercial equipment 5%
other assets
Furniture and fixtures 15%
Electronic machines for the office
Automobiles 12%
Buildings 20%
Industrial buildings 25%
FINANCIAL FIXED ASSETS
Equity investments
They are measured at the acquisition cost or other underwriting including imputable accessory
charges adjusted where necessary for impairment losses. Impairment losses exceeding the
corresponding values are recorded under provisions for risks and charges.
In case of no conditions of impairment losses it is reset the value of the stake, up to, at most, of the
original cost.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 33
Receivables and payables
Credits of any nature are stated at nominal value, reduced to their estimated realizable value through
a specific valuation allowance for a direct reduction of them.
Payables are shown at their nominal value.
Cash and cash equivalents
Cash and cash equivalents are made up by bank deposits, cash and cash equivalents and are recorded
at their estimated realizable value, which coincides with the nominal value.
Accrued expenses, deferred assets and liabilities
Under these items are recorded portions of costs and revenues which are common to two or more
periods, in accordance with the principle of accrual basis.
Provisions for risks and charges
Provisions for risks and charges are made in relation to charges and losses realistically to be expected
for which, at the end of the financial year, are undetermined the amount and the date of occurrence .
The provision for taxation includes allocations made in respect of the income tax expenses for the
sustainable foreseeable future.
The tax provision includes deferred taxes calculated on the basis of timing differences between the
pre-tax profit calculated according to statutory criteria and the company's taxable income calculated
for tax purposes.
Memorandum Accounts
Guarantees issued are recorded at an amount corresponding to the amount of the secured debt.
The commitments are recorded on the basis of contracts existing at end of the period not falling
within the normal operational cycle to the part not yet executed.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 34
Revenues and costs
They are stated in the balance sheet in accordance with the principles of prudence and competence.
Revenues are recorded net of returns, discounts, allowances and bonuses and taxes related to the sale
of goods and provision of services.
Grants
Grants related to income
Are accrued in the period in which it is originated the right to receive payment, regardless of
the date of settlement.
Taxes on income
Income taxes are accounted for on the accrual basis of a realistic forecast of the taxes payable under
current tax regulations.
Deferred taxes are payable on temporary taxable differences, and where there are the necessary
conditions of certainty, and where exist the future tax benefits arising both from deductible
temporary differences and losses carried forward. The assets for advance taxes are recognized in
accordance with the principle of prudence and only if there is reasonable certainty that, in the
periods in which the temporary differences will be reversed that have led to the recognition of
deferred taxes, of a taxable income non-less than the differences that will be cancelled.
Any net receivables and payables are stated for IRES (tax), and are detected, respectively, among the
other receivables and payables to the parent company Terni Research SpA, as a result of the option
of the Company for fiscal consolidation carried out in the month of June 2011 and valid for the
fiscal years 2011, 2012 and 2013.
Use of estimates
The preparation of the financial statements requires from the management to apply accounting
principles and methodologies that, in certain circumstances, are based on difficult and subjective
valuations and estimates based on past experience and assumptions that are from time to time
considered reasonable and realistic, related to certain circumstances. The application of these
estimates and assumptions affect the amounts reported in the financial statements, including balance
sheet, income statement and cash flow statement, as well as the disclosures. The actual results of the
balance sheet items for which have been used these estimates and assumptions may differ from those
Italeaf S.p.A.
Financial Statement as at 31 December 2013 35
reported in the financial statements due to the uncertainty which characterizes the assumptions and
the conditions upon which the estimates are based.
SECTION 3
ANALYSIS OF THE FINANCIAL STATEMENTS AND THE RELATED VARIATIONS
BALANCE SHEET: ACTIVE
FIXED ASSETS
INTANGIBLE ASSETS
This item totaled Euro 122,116.
In the pages that follow are given, respectively, the analysis of the variations of the "Original cost"
(Table 1), of the "Provision for depreciation and amortization" (Table 2) and "Net values" (Table 3) .
Table 1
ORIGINAL COST
INTANGIBLE ASSETS
values at
31.12.2012
Increases from
acquisition
Decreases
for disposals revaluations
other
changes
Values at
31.12.2013
Installation costs and 6,414 6,414
expansion
Costs of research,
development and advertising 2,500 2,500 Patents and rights to use intellectual property
Concessions, licenses, 296,376 296,376 trademarks and similar rights Start-up
Installation costs and
TOTAL 305,290 305,290
Italeaf S.p.A.
Financial Statement as at 31 December 2013 36
Table 2
INTANGIBLE ASSETS
AMORTIZATION AND DEPRECIATION FUND
values at
31.12.2012
Increases in
the period
Decreases for
disposals reclassifications
other
changes
values at
31.12.2013
Installation costs and
extension
- formation expenses 2,566 1,283 3,848
capital increase
Costs for development and advertising
- Advertising costs
- depreciation and amortization
Patents and rights to use intellectual property
- depreciation and amortization 1,000 500 1,500 Concessions, licenses, trademarks and similar rights
- depreciation and amortization
Goodwill
- depreciation and amortization 118,550 59,275
177,826
Altre
- depreciation and amortization 0 0
TOTAL 122,116 61,058 183,174
Table 3
NET VALUES
31.12.2012 31.12.2013
INTANGIBLE ASSETS
original
cost
Accumulated depreciation and
writedowns net values original cost
fund depreciation
and
amortization net values
Costs Installation and expansion 6,414 -2,566 3,848 6,414 -3,848 2,565 Research costs development and advertising
Patents and rights to use intellectual property 2,500 -1,000 1,500 2,500 -1,500 1,000
Concessions, licenses,
start-up 296,376 -118,550 177,826 296,376 -177,826 118,550 Other
TOTAL 305,290 -122,116 183,174 305,290 -183,174 122,116
Italeaf S.p.A.
Financial Statement as at 31 December 2013 37
The start-up recorded in the financial statements is derived from the transfer of the company,
performed within the constitution of the Company in December 2010, to release the subscription of
the share capital as resulting from the appraisal of the independent expert .
TANGIBLE FIXED ASSETS
The item amounted to Euro 22,141,564 with a decrease of Euro 1,958,845 compared to the 2012
financial year.
In the pages that follow are reported, respectively, the analysis of the variations of the "Original cost"
(Table 1), the "Provision for amortization and depreciation" (Table 2) and "Net values" (Table 3).
Table 1
ORIGINAL COST
Values at
31.12.2013 Increases
Decreases
for disposals revaluation
Transfer from LIC and
reclassifications
Value at
31.12.2012
TANGIBLE FIXED
ASSETS
Land and buildings
- historical cost 20,033,423 335,313
-1,915,431 18,453,305
- grants related capitale
Plant and machinery
- historical cost 5,369,282 33,247 5,402,529
- grants related capitale Industrial and commercial equipment
- historical cost 6,368 6,368
- grants related capitale
other assets
- historical cost 94,640 1,160 95,800
- grants related capitale Assets under development and advances
- historical cost 157,450 157,450
TOTAL 25,503,713 527,170 -1,915,431 24,115,452
The item land and buildings includes full ownership of of the areas, the land and buildings of the
industrial site of Narni-Nera Montoro as well as the investments to upgrade some of the existing
buildings. The increases are related to investments for the re-use of some properties of the site. The
decreases, however, relate to the transfer of two buildings in July 2013 with a release of a capital
increase in the Company Led Green Industry SpA for € 2,500,000 and a sell with payment in money
made in December in favor of TerniEnergia Spa.
From the economic point of view the two transactions resulted in gains of Euro 2,143,270.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 38
Table 2
TANGIBLE FIXED ASSETS
AMORTIZATION AND DEPRECIATION FUND
Values at 31.12.2012 increases
Decrease due to
disposals
Reversal of impairment
losses reclassifications other
changes * Values at 31.12.2013
Land and buildings
- depreciation and amortization 847,797 421,499
-141,841 1,127,455
Plants and machinery
- depreciation and
amortization 533,713 270,610 804,323
Industrial and commercial equipment
- depreciation and
amortization 2,021 1,274 3,294
Other assets
- depreciation and
amortization 19,773 19,044 38,817
Assets under development and advances
TOTAL 1,403,303 712,426 -141,841 1,973,888
Table 3
Net Values
31.12.2012 31.12.2013
TANGIBLE FIXED ASSETS
original cost
Accumulated depreciation
and writedowns net values original cost
fund depreciation
and amortization net values
Land and buildings 20,033,423 -847,797 19,185,626 18,453,305 -1,127,455 17,325,851 Industrial and commercial equipment 5,369,282 -533,713 4,835,569 5,402,529 -804,323 4,598,206
6,368 -2,021 4,347 6,368 -3,294 3,074
Other assets 94,640 -19,773 74,867 95,800 -38,817 56,983
Land and buildings 157,450 157,450
TOTAL 25,503,713 -1,403,303 24,100,409 24,115,452 -1,973,888 22,141,564
Italeaf S.p.A.
Financial Statement as at 31 December 2013 39
FINANCIAL FIXED ASSETS
Financial fixed assets:
This item totaled Euro 7,083,775.
Financial fixed assets: Shareholdings in subsidiaries
The item amounted to Euro 3,031,183.
It is the Company's shareholding in listed below:
Name Site Share capital
% ownership
Carrying amount of the
investment
Profit / Loss
Period Net equity at
31.12.2013
Greenled Industry S.p.A. Narni - Via dello stabilimento 1 3,400,000 73.53%
2,500,000 97,140 3,523,948
SkyRobotic S.r.l. Narni - Via dello stabilimento 1 1,030,000 51.46%
530,000
-
530,000
ITALEAF U.K. London - Corn Hill 1,183 100.00%
1,183
-
1,183
Following the Changes during the year:
Name Site Share capital
% ownership
Carrying amount of the
investment
Profit / Loss
Period Net equity at
31.12.2013 Net Equity attributable
Greenled Industry S.p.A. Narni - Via dello
stabilimento 1 3,400,000 73.53% 2,500,000 97,140 3,523,948 2,591,159
SkyRobotic S.r.l. Narni - Via dello
stabilimento 1 1,030,000 51.46% 530,000 - 1,030,000 530,000
ITALEAF U.K. London - Corn Hill 1,183 100.00% 1,183 - 1,183 1,183
The change is attributable to equity investments in subsidiaries for the subscription, in the month of
July 2013, of an increase of share capital in the Company GreenLed Industry SpA, with the exclusion
of the option right; the increase subscribed for Euro 2,500,000 was released through the transfer of
certain real estate properties. At 31 December 2013, the shareholding in GreenLed Industry SpA
amounted to 73.53% of the Share Capital.
The company GreenLed Industry S.p.A. is a manufacturer of lighting fixtures on LED technology,
both for street and industrial area use.
On December 21 2013 moreover, the Company entered into a stake of € 530,000, corresponding to
51.46% of the share capital in the company of new constitution called Skyrobotic Srl ; the Company
will be active in the study, design, development, engineering and production of UAV (Unmanned
Italeaf S.p.A.
Financial Statement as at 31 December 2013 40
Aerial Vehicle), in particular applications of 'unmanned' robotics technologies, such as the
development of robotic unmanned fixed wing and rotary-wing aircrafts.
The total equity investment of the Company in ITALEAF U.K Ltd responds to the need to create a
subsidiary in order to facilitate the expansion and reproduction of its model on foreign markets.
Financial assets: Shareholdings in other companies
This item totaled Euro 4,000,020 and is represented by shares in the company in Veneto Banca SpA.
The following changes during the year:
Shareholdings in other companies
Values at 31.12.2012
CHANGES IN FOR THE YEAR Values at 31.12.2013 Increases Decreases reclassifications revaluations
TerniEnergia S.p.A. 5,091,905 -5,091,905 0
Veneto Banca S.c.r.l
4,000,020
4,000,020
Total 5,091,905 4,000,020 -5,091,905 4,000,020
The equity investment in the subsidiary TerniEnergia has been reclassified under current assets,
given the resolution of the board of directors that authorized the sale to the extent of its entire
amount.
Financial assets: Other receivables
The item amounted to € 52,572 and is represented by security deposits in cash.
Receivables
The item, exclusively represented by loans to Italian parties, amounted to 1,564,350 euros and it is so
detailed:
Italeaf S.p.A.
Financial Statement as at 31 December 2013 41
Accounts receivable 31.12.2013 31.12.2012 Differences
Receivables from clients 328,519 207,352 121,167
Receivables from subsidiaries
Receivables from affiliated companies
Receivables from parent companies 928,154 415,940 512,214
Tax receivables 292,649 696,988 -404,339
Receivables from Deferred tax asset
Receivables from associated companies 15,028
Receivables from others 0 296,879 -296,879
TOTAL 1,564,350 1,617,159 -67,838
Accounts receivables: from clients
Trade receivables from clients amounted to € 328,519 and refer to receivables owed for services for
Italian organizations and are payable within 12 months.
Name 31.12.2013 31.12.2012 Difference
Ordinary clients 599,403 478,236 121,167
Provision for impairment -270,884 -270,884 0
TOTAL 328,519 207,352 121,167
It is in the detail made of receivables arising from the supply of utilities.
The value of receivables is adjusted to their estimated realizable value with the recording of the
reserve for bad debts for € 270,884.
Receivables from parent companies
This item amounted to Euro 928,154 and is represented by trade and financial receivables from
parent companies such as shown below:
Italeaf S.p.A.
Financial Statement as at 31 December 2013 42
Kind 31.12.2013 31.12.2012 Difference
Commercial
- credits from performance 928,154 415,940 512,214 Financial: - c / intercompany
- dividends - Other
TOTAL 928,154 415,940 512,214
In detail it comes to Euro 928,154 of trade receivables from Terni Research SpA
Receivables: Tax credits
This item amounted to Euro 292,649 as shown below:
Name 31.12.2013 31.12.2012 Difference
VAT 286,388 656,131 -369,743
IRES tax
IRAP tax 38,139 -38,139
Other Receivables 6,261 2,717 3,543
TOTAL 292,649 696,988 -404,339
Receivables: from others
Other receivables, amounted to € 15,028, and are as follows:
Name 31.12.2013 31.12.2012 Difference
Others
- Security deposits 0 0 0
- Other Receivables 0 909 -909
- Receivables from Associated
companies 15,028 295,970 -280,942
TOTAL 15,028 296,879 -281,852
For any further information we refer to the prospectus of the relations with related parties set out in
the annual report.
Financial assets not representing fixed assets
Other equity investments
The other equity investments classified as financial assets other than fixed assets, amounted to Euro
508,924 and are represented by shareholdings in TerniEnergia:
Italeaf S.p.A.
Financial Statement as at 31 December 2013 43
Below are the changes during the year:
Shareholdings in other companies
Values at 31.12.2012
CHANGES IN FOR THE YEAR Values at 31.12.2013
Increases Decreases reclassifications revaluations
TerniEnergia S.p.A. -4,582,981 5,091,905 508,924
Total -4,582,981 5,091,905 508,924
The equity investment in the subsidiary TerniEnergia was originally entered under financial fixed
assets and then reclassified under current assets, given the resolution of the board of directors that
authorized the sale of up to its entire amount.
Cash and cash equivalents
This item amounted to Euro 7,293 and is detailed as follows:
Name 31.12.2013 31.12.2012 Difference
Bank current accounts 6,881 40,946 -34,064
Cash 412 1,332 -920
TOTAL 7,293 42,278 -34,985
This is the cash on hand in addition to the availability of the current account with theCassa di
Risparmio dell’ Umbria SpA., Veneto Banca S.p.A., Monte Paschi Siena S.p.A. and Banca Popolare
di Vicenza.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 44
ACCRUED INCOME AND PREPAYMENTS
This item amounted to Euro 4,459 and is detailed as follows:
Name 31.12.2013 31.12.2012 Difference
Accrued expenses 4,459 2,582 1,877
4,459 2,582 1,877
THE BALANCE SHEET: LIABILITIES
NET EQUITY
The item amounted to Euro 19,798,906.
The following tables show the movements in equity during 2012 and 2013.
Net Equity composition
balance at
31.12.2012
Allocation of the earnings for the period Other variations
Profit for the year
Balance at 31.12.2013
distribution of dividends Other Increases Decreases reclassifications
Share capital 80,000 14,920,000 15,000,000
Share premium reserve 0 0
Legal reserve 0 1,382 1,382
Satutory Stocks 0 0
Other Stocks 19,529,465 -14,920,000 -1 4,609,464
Profit (loss) for the year 0 26,259 26,259
Share capital 27,641 -27,641
725,168 725,168
TOTAL 19,637,106 0 0 725,168 20,362,273
Italeaf S.p.A.
Financial Statement as at 31 December 2013 45
Net Equity composition
balance at
31.12.2012
Allocation of the earnings for the period Other variations
balance at 31.12.2012
Allocation of the
earnings for the period
distribution of dividends Other
Increases distribution
of dividends Other
Share capital 15,000,000 15,000,000
Share premium reserve 0 0
Legal reserve 1,382 36,258 37,640
Satutory Stocks 0 0
Other Stocks 4,609,464
4,609,465
Profit (loss) for the year 26,259 688,911 715,170
Share capital 725,168 -725,168
-563,368 -563,368
TOTAL 20,362,273 -563,368 19,798,906
The share capital at 31 December 2013 amounted to Euro 15,000,000.00 and 15,000,000.00 are the
number of shares at a nominal value of one Euro, owned entirely by Terni Research SpA in relation
to the possibility of distribution of reserves as shown below at the bottom:
Source
Amount
on 31.12.2013
(a+b)
Available
quota (a)
Available
quota (b) Distributable
share b
Summary of the uses of the three previous years
Increase in share
capital Loss
covering
Distribution
to shareholders Other
Share capital 15,000,000
Capital Stocks:
Share premium reserve
Retained earnings:
Legal reserve
Other Stocks
Profit (loss) for the year 5,324,635 5,324,633 5,324,633
Share capital -563,368
TOTAL 19,761,267 5,324,633 5,324,633
Italeaf S.p.A.
Financial Statement as at 31 December 2013 46
PROVISIONS FOR LIABILITIES AND CHARGES
The item amounted to Euro 6,886,527.
Name 31.12.2013 31.12.2012 Difference
Provision for deferred taxes 6,886,527 7,133,696 -247,169
TOTAL 6,886,527 7,133,696 -247,169
The entire entry shall be represented by the deferred tax reserve. It is in the detail of the provision
for latent taxes posted in relation to the contribution made by the company Nuova Terni Industrie
Chimiche SpA on favour of Nuova TIC S.r.l. (now ITALEAF SpA) and of which the reversal takes
place simultaneously with the amortization of the related capital gains.
EMPLOYMENT TERMINATION INDEMNITY
This item totaled Euro 112,153. The change is attributable to the provision of the year over the
transfer of 6 units from the associated company TerniEnergia S.p.A. last January 2013.
Name 31.12.2013 31.12.2012 Difference
Employee severance indemnitity fund 112,153 154,193 -42,040
TOTAL 112,153 154,193 -42,040
PAYABLES
This item totaled Euro 4,632,548 and is structured as follows:
Italeaf S.p.A.
Financial Statement as at 31 December 2013 47
Description 31.12.2013 31.12.2012 Differences
Bonds
Convertible bonds Amounts due to shareholders for loans
Debts owed to banks 430,156 950,674 -520,518 Payables to other lenders Advances 200,000 200,000
Payables to suppliers 692,424 933,471 -241,047
Debts represented by securities Payables to subsidiaries 398,683 Payables to affiliated companies
Payables to parent companies 2,434,995 754,145 1,680,851 Tax Payables 88,353 28,819 59,534
Payables to general government Social security funds 41,451 77,316 -35,865
Other debts 346,486 680,546 -334,060
TOTAL 4,632,548 3,424,971 1,207,577
Debts: Debts owed to banks
This item amounted to Euro 430,156; This is the bank overdraft with Monte Paschi Siena SpA,
granted for a nominal value of € 962,500 and as guarantee the parent company Terni Research SpA
issued a surety guarantee to the Banca Popolare di Vicenza S.p.A..
Description 31.12.2013 31.12.2012 Differences
- C/A Bank overdrafts 430,156 950,674 -520,518
TOTAL 430,156 950,674 -520,518
Debts: Payments on account
The account amounts to Euro 200,000 and is represented by payments received from the subsidiary
TerniEnergia for the supply of utilities.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 48
Liabilities: Accounts payable to suppliers
This item amounted to Euro 692,424 and is represented by payables to suppliers including invoices
to be received for € 168,336.
Description 31.12.2013 31.12.2012 Differences
Ordinary suppliers 524,088 660,525 -136,437
Invoices to be received 168,336 272,945 -104,609
TOTAL 692,424 933,471 -241,047
Debits: Payables to parent companies
This item amounted to Euro 398,683 and is detailed as for kind:
Kind 31.12.2013 31.12.2012 Difference
Trade
- services provision
- Others 398,683 398,683
Financial - C/a centralized Treasury
TOTAL 398,683 398,683
It is specifically the debt due from the subsidiaries Skyrobotic Srl and Italeaf U.K. Ltd for the
subscription of the share capital not fully paid up upon incorporation.
Debits: Payables to parent companies
This item amounts to Euro 2,434,995, as detailed by type:
Kind 31.12.2013 31.12.2012 Difference
Trade
- services provision
- Others 645,174 754,145 -108,971
Financial - C/a
centralized Treasury 1,789,821 1,789,821
TOTAL 2,434,995 754,145 1,680,850
Italeaf S.p.A.
Financial Statement as at 31 December 2013 49
This item refers entirely to the debt to the controlling company Terni Research SpA for income tax
(IRES). The Company participates in fact at the tax consolidation regime for which Terni Research
SpA joined in on June 2011 for the years 2011,2012,2013.
For the amount Euro 1,789,821 the entry shall be represented by the negative balance of the bank
current account with Terni Research SpA, regulated at normal market conditions.
Debts: Tax Payables
This item amounted to Euro 88,353 and is as follows:
Description 31.12.2013 31.12.2012 Difference
Tax payables Irap 69,580 0 69,580
Inland Revenue C / Rit. Self-Employment 1,016 125 891
Inland Revenue C / Rit. employees. 17,757 28,695 -10,937
TOTAL 88,353 28,819 59,534
This is the debt to the tax authorities for withholdings on wages and salaries for the month of
December.
Debts: Payables to general government Social security funds
The item amounts to Euros 41,451 and consists of the debt for contributions on remuneration of
employees
Description 31.12.2013 31.12.2012 Difference
Debts / INPS (Employees) 41,451 75,057 -33,606
Debts / other institutions 2,260 -2,260
TOTAL 41,451 77,316 -35,865
Debts: Other payables
This item amounted to Euro 346,486 and is detailed as:
Italeaf S.p.A.
Financial Statement as at 31 December 2013 50
Description 31.12.2013 31.12.2012 Difference
To affiliated companies
TerniEnergia S.p.A. 82,584 1,720,467 -1,637,884
Lucos Alternative Energies S.p.A. 123,594
123,594
Igreen patrol S.r.l. 14,580
14,580
Others
Liabilities for wages and salaries 76,741 44,890 31,851
Amounts due to others 48,986 129,025 -80,039
TOTAL 346,486 1,894,382 -1,547,897
It consists mostly of trade payables to sister company TerniEnergia for remediation activities and
miscellaneous services, of the debt owed to employees for remuneration for the month of December
and accrued bonuses and holiday pay.
MEMORANDUM ACCOUNTS
The Company has provided bank guarantees for a total of Euro 15,164; detailed as follos:
- Customs Agency Euro 10,000 - Bank guarantee for payment of tax on electricity
consumption.
- City of Narni € 5,164 - Bank guarantee for the costs arising from building works.
INCOME STATEMENT
The following is an analysis of the revenues and expenses for the period ended on 31 December
2013 compared with the previous year
REVENUES
The revenues value amounted to Euros 2,116,008 and is composed as follows:
Italeaf S.p.A.
Financial Statement as at 31 December 2013 51
Description 2013 2012 Difference
Revenues from sales and services 1,741,384 3,488,143 -1,746,759 Changes in inventories of works in progress, of semi-finished and finished goods
Variations on works in progress of custom products
Increase in fixed assets for internal works 134,950
134,950
Other revenues and income 239,674 502,399 -262,724
TOTAL 2,116,008 3,990,542 -1,874,532
Revenues from sales and services
This item amounts to Euro 1,741,384, as detailed below:
Description 2013 2012 Difference
Revenues from sales and services
Revenues from the management of the biological
sector 1,265,868 -1,265,868
Revenues from the remediation management 1,109,400 -1,109,400
Miscellaneous revenues 316,124 625,293 -309,169
Revenues from the management of the biological sector 1,425,260 487,582 937,678
TOTAL 1,741,384 3,488,143 -1,746,759
The item includes for Euro 607,960 revenues from the lease and the services provided pursuant to
service contracts in place with some Group Companies and with the new initiatives located at Italeaf
SpA.
The item miscellaneous revenues includes income from the re-debiting of the utilities and the cost
of common services (cleaning of the site, security, reception) to various companies in the industrial
site in Nera Montoro.
" Biological and organic revenue management " and " Remediation revenue management " for the
year 2012 included the consideration for the remediation of the site and for the purification of
groundwater, assets transferred together with the relevant business unit to TerniEnergia on
December 21, 2012.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 52
Increase in fixed assets for internal works
The account amounts to Euro 134,950, and is represented by the amount of deferred costs related to
upgrading and redevelopment of the site of Nera Montoro, in relation to the most extensive
architectural and environmental regeneration project entrusted to the Politecnico di Milano -
Department of Architecture and Planning of which you are given ample information in the
management report.
Other Revenues
The account amounts to Euro 239,674, and is as follows:
Description 2013 2012 Difference
Real Estate leases 38,217
38,217
Other revenues 34,130 52,399 -18,269
Capital gains 167,327 450,000 -282,673
TOTAL 239,674 502,399 -262,725
The Capital gains includes the gain on the sale of a building to the subsidiary TerniEnergia which
was completed in December.
PRODUCTION COSTS The costs amounted to Euro 3,502,272. They are as follows:
Italeaf S.p.A.
Financial Statement as at 31 December 2013 53
Description 2013 2012 Difference
Raw materials, consumables, supplies and goods 15,907 30,005 -14,098
Services 1,752,201 3,860,360 -2,108,159
Use of third party assets 134,401 95,912 38,489
Staff 582,040 766,030 -183,991
Amortisation and impairment 773,484 823,511 -50,026
Change in inventories of raw, ancillary and consumable materials and goods 0 0 0
Provisions for risks 0 0 0
other provisions
40,000 -40,000
Other operating expenses 244,239 229,082 15,156
TOTAL 3,502,272 5,844,900 -2,342,629
The details of the items that make up the production cost is shown in the tables and in the
comments set out below.
Raw materials, consumables, supplies and goods
This item amounted to for Euro 15,907 and is represented by costs for the purchase of consumables
for the management of water treatment plants and the maintenance and management of the site .
Description 2013 2012 Difference
Purchase of materials 15,907 30,005 -14,098
Motor fuels and lubricants
TOTAL 15,907 30,005 -14,098
Services
This item amounted to for Euro 1,752,201 and mainly includes expenses for technical advice, utility
expenses and fees for the management of the site, as detailed in the following table :
Italeaf S.p.A.
Financial Statement as at 31 December 2013 54
Description 2013 2012 Difference
- Subcontracted work 24,903 2,280,922 -2,256,020
- Waste disposal 14,350 35,164 -20,814
- Cleaning and surveillance 120,726 124,960 -4,234
- Consulting / Professional services 127,717 148,018 -20,302
- Utilities 1,179,959 913,809 266,150
- Insurance 18,324 21,654 -3,330
- Banking and Postal 5,237 5,786 -548
- Other external services 260,985 330,047 -69,062
TOTAL 1,752,201 3,860,360 -2,108,160
The "Subcontracted work " includes the fee paid to TerniEnergia Spa, which in 2012 merged with
TerniGreen SpA, with which the Company had a contract for the remediation of the site and for the
purification of groundwater.
Use of third party assets
This item amounted to for Euro 134,401 and is represented by the rent expenses for equipment.
Description 2013 2012 Difference
Hire Equipment / Vehicles 14,082 13,900 182
Other costs use of third party assts 120,319 82,012 38,307
TOTAL 134,401 95,912 38,489
Staff
Personnel costs amounted to € 582,040. At 31 December 2013 the workforce was represented by 11
units; in this regard see the table in Section 4, "Other Information". See information below.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 55
Description 2013 2012 Difference
Wages and salaries 447,682 563,618 -115,936
social security charges 108,555 157,451 -48,896
Provision for severance indemnities 15,057 29,785 -14,729
Other charges 10,746 15,176 -4,430
TOTAL 582,040 766,030 -183,991
Amortisation and impairment
This item amounted to Euro 773,484 and is as follows:
Description 2013 2012 Difference
Amortization of intangible assets 61,058 61,058 0
Amortization of tangible fixed assets 712,426 762,453 -50,026
Other write-downs of fixed assets
Write-down of receivables included in current assets and in cash and cash equivalents 0 40,000 -40,000
TOTAL 773,484 863,511 -90,026
Other operating expenses
This item amounted to Euro 244,239 and is as follows:
Description 2013 2012 Difference
- IMU 158,271 144,475 13,796
- Taxes other than on income 82,453 74,940 7,513
- Other expenses 3,515 9,667 -6,152
TOTAL 244,239 229,082 15,156
FINANCIAL INCOME AND EXPENSES
Financial management has a negative balance of Euro 22,403.
They are as follows::
Italeaf S.p.A.
Financial Statement as at 31 December 2013 56
Description 2013 2012 Difference
FINANCIAL PROCEEDS Income from equity investments - in subsidiaries - in affiliated companies - in other enterprises Other financial revenue from receivables held as fixed assets - from subsidiaries
- from affiliated companies - from parent companies securities inscribed in fixed assets other than
equity investments
securities inscribed in current assets other than equity investments
Other income different from above - from subsidiaries - from affiliated companies - from parent companies 0 0 0
- from others 46,886 85,530 -38,644 - Interest earned on bank and post a / c
- interest receivable on repurchase agreements Other financial income from sales transactions with
compulsory repurchase agreements FINANCIAL PROCEEDS Total financial income 46,886 85,530 -38,644
FINANCIAL CHARGES Interest and other financial charges - to subsidiaries - to affiliated companies - to parent companies 5,671 941 4,729
- verso others - on bond debt - on payables to banks 63,618 16,124 47,494
- interest payable on repurchase agreements Other financial income from sales transactions with
compulsory repurchase agreements - verso others - on bond debt Losses on foreign exchange Total financial charges 69,289 17,065 52,223
TOTAL -22,403 68,465 -90,867
EXTRAORDINARY INCOME AND EXPENSES
The account amounts to Euro 1,304,026, as detailed below:
Italeaf S.p.A.
Financial Statement as at 31 December 2013 57
Description 2013 2012 Difference
EXTRAORDINARY PROCEEDS - Windfall gains 124,720 0 124,720
Gains on disposal of property 1,976,042 2,942,559 -966,517
TOTAL EXTRAORDINARY INCOME
EXTRAORDINARY EXPENSE - contingent liability -28,321 0 -28,321
- extraordinary costs -768,415
-768,415
TOTAL 1,304,026 2,942,559 -1,638,533
The extraordinary income mainly includes the gain on the transfer of two properties for the
subscription of the capital of Greenled Industry SpA completed in July. The capital gains are due to
the fact that the values assigned, identified on the basis of an appropriate appraisal prepared by an
independent expert, were recorded at a lower net book value in the financial statements of the
Company.
The item "Capital losses" includes losses on the sale of shares of TerniEnergia Spa conducted during
the financial year.
Income taxes of the period, current deferred and advanced
Income taxes, current and deferred amounted to 458,727 Euro and are detailed as so:
Description 2013 2012 Difference
current taxes 705,896 626,083 79,813
Prepaid taxes and deferred -247,169 -194,585 -52,584
TOTAL 458,727 431,498 27,230
FURTHER INFORMATION
Average number of employees
The numbers of employees at 31 December 2013 were 11 units distributed as follows by category:
Italeaf S.p.A.
Financial Statement as at 31 December 2013 58
Staff 2013 2012 Difference
Executives 0 0
Managers 3 4 -1
Employees 5 6 -1
Workers 3 12 -9
TOTAL 11 22 -11
Remuneration of directors and auditors
The table below shows the total remuneration paid to Directors and Statutory Auditors for the
performance of their duties.
(in Euro) 2013 2012 Difference
PricewaterhouseCoopers S.p.A. 15,000 25,000 -10,000
Total 15,000 25,000 -10,000
Remuneration of the corporate bodies
The table below shows the remuneration of Directors and Board of Statutory Auditors
(in Euro) 2013 2012 'Difference
Directors 6,000 2,000 4,000
Auditors 7,072 3,400 3,672
Total 13,072 5,400 7,672
Derivative financial instruments and assets intended for a specific business deal
Pursuant to art. 2427 bis of the Civil Code, it is noted that the company has not used during the year
any derivative financial instruments, and pursuant to art. 2447 bis of the Civil Code does not
currently have assets for a specific business deal.
Information on Article 2497 ter Civil Code.
The table, hereinafter summarises the key figures of the last financial statements of the Company
exercising the activity of direction and coordination, pursuant to art. 2497bis of the Civil Code.
Italeaf S.p.A.
Financial Statement as at 31 December 2013 59
Terni Research S.p.A.
Based in Narni, Strada dello Stabilimento, 1
Share capital: Euro 9,050,000.00 fully paid-in
Fiscal code. Registry of enterprises: 01312370552 Registered in the Register of Enterprises of TERNI
Num. R.E.A. TR-87475
BALANCE SHEET 31.12.2012 31.12.2011
ASSETS:
A) A) Receivables from shareholders for outstanding payments
B) Fixed assets 46,395,394 27,647,136
C) Current assets 4,562,641 8,275,400
D) Prepayments and accrued income 971,639 472,660
TOTAL 51,929,674 36,395,196
LIABILITIES:
A) Net Equity:
Share capital 9,050,000 9,050,000
Stocks 22,108,599 2,982,174
Profit (loss) for the year 1,687,198 2,452,441
B) Provisions for risks and charges 296,103 324,385
C) Provision for employment termination benefits 119,380 86,473
D) Debts 18,650,865 21,499,723
E) Prepayments and accrued 17,530 -
TOTAL 51,929,675 36,395,196
THE INCOME STATEMENT 2012 2011
Production value (non-financial income) 2,808,337 3,046,602
Production costs (non-financial costs) 3,203,811 3,214,684
Difference (395,474) (168,082)
Financial income and expenses 1,979,543 2,753,086
Value adjustments on financial assets
Extraordinary income and expenses 128,427 (126,561)
Earnings before income taxes 1,712,496 2,458,443
Taxes on income 25,298 6,002
Profit (loss) for the year 1,687,198 2,452,441
The essential figures of the Parent Company Terni Research SpA shown in the chart required by
article 2497-bis of the Civil Code have been extracted from the financial statements for the financial
year ended on 31 December 2012. For an adequate and complete understanding of the equity and
financial position at 31 December 2012 and profit or loss earned by the company for the year ended
Italeaf S.p.A.
Financial Statement as at 31 December 2013 60
on that date, please refer to the financial statements which together with the report of the
independent auditors is available in the form and manner prescribed by law.
The financial statements, comprising the balance sheet, income statement and explanatory notes give
a true and fair view of the financial position and economic result and are consistent with the
accounting records.
Narni, 28 March 2014
To the Board of Directors
Prof. Avv. Stefano Neri