Bulgarian Economic Forum Energy projects: the perspective of

1. Bulgarian Economic ForumEnergy projects:the perspective of an international investorMr. Giuseppe De BeniManaging Director Sofia, 26-27 November 2009

2. Overview of Italcementi Group • With an annual production capacity of approximately 70 million tons of cement, Italcementi Group is the world’s fifth largest cement producer. • Italcementi Group’s companies combine the expertise, know how and cultures of 22 countries in 4 Continents boasting an industrial network of 63 cement plants, 15 grinding centres, 5 terminal. • In 2008 the Group had sales amounting to almost 6 billion Euro. (www.italcementigroup.com)

3. Overview of Italgen • Italcementi Group has been operating in the energy sector since 1907. • Italgen was established in 2001 as a spin-off of all the energy assets of the Italcementi Group. • In Italy operates 14 hydro plants, 1 thermal plant and owns 400 km of dedicated transmission lines. • Through its strategy, Italgen aims to help increasing Italcementi Group’s energy independence and reduce its overall carbon emissions balance.

4. Italgen projects are boasting on global Group presence Bulgaria • Under evaluation Turkey Italy • Bares Wind Farm • 142.5 MW • New Revampings of hydro plants 56 MW Morocco Egypt • Laayoune Wind farm • 5 MW (first step) • Gulf El Zeit Wind Farm • 120 MW (first step)

5. Turkey: Bares Bares

6. Egypt: Gulf El Zeit Gulf El Zeyt

7. Morocco: Laayoune Laayoune

8. Investments in RE are representing the answer to our: • Concern for global climate change (United Nations Framework Convention on Climate Change, Kyoto Protocol, EU Directive 20/20/20) • Need for security of energy supply • Reaction to volatility fossil fuel prices • Attention to technological evolution (continuous improvement of reliability and efficiency of key equipment) • Support received by local Government as FDI (Green Certificates, New Energy Laws adopted,, 2020 targets, etc)

9. The perspective of an international investor: where to invest? • Several Countries (and in particular Countries in the Mediterranean rim) are competing to attract the most relevant players in the field of renewable energies. • Priorities in Energy Policy and Planning (from the perspective of an international investor) are therefore: • a sound institutional environment • a defined legal framework • adequate incentives • In Countries where: • energy demand is forecasted to grow at high rate • renewable energy sources are abundant and of high quality • local governments are adopting new regulatory frameworks to support renewable energies development and attract FDI.

10. Bulgaria could represent a new opportunity for Italgen due to: • Strong presence of Italcementi Group in the Country since 1998 • Consolidated position as largest cement producer and exporter • Reliable potential for wind energy production • Legal and regulatory basis (Energy Act 2006, Renewable and Alternative Energy Sources and Biofuels Act 2008) • Efforts by the Bulgarian Government to attract reliable foreign investors should focus on: • Adoption of a renewed legal framework, with a clear view on the medium term • Improvement of the “technical network” (Grid connection and reliability) • Support on having all Renewable Energy initiatives as CDM projects.