Terna — Investor Presentation 2020

Nov 11, 2020

9M 2020 Consolidated Results

November 11th 2020

Annexes 16

Demand Evolution – Last 12 months Highlights (1/2)

9M 2020 data:

• National Demand at 225 TWh, o/w ~40% covered by RES
• Net Total Production at 206 TWh

Security of supply ensured despite Covid emergency

€mn	9M 2020	9M 2019	Δ vs 9M19
Revenues	1,781	1,666	+7%
EBITDA	1,323	1,278	+4%
Group Net Income1	569	553	+3%
Capex	749	670	+12%

	9M 2020	FY 2019
Net Debt	8,825	8,259

On track to meet all targets despite the challenging scenario

9M 2020 results

Revenues

Growth driven by Regulated and Non Regulated revenues Insourcing attività di O&M Rete FS

Note: figures may not add up due to rounding 1. Including IFRIC12 2. Construction margin, including IFRIC12

Revenues Analysis 9M 2020 results

€mn NON REGULATED AND INTERNATIONAL

Investments and perimeter change as growth drivers

Opex

9M 2020 results

Insourcing attività di O&M Rete FS Operating costs evolution reflecting perimeter change

9M 2020 results

Opex Analysis

Costs dynamics under control Insourcing attività di O&M Rete FS

EBITDA 9M 2020 results

Insourcing attività di O&M Rete FS EBITDA growth driven by all businesses

From EBITDA to Net Income 9M 2020 results

+3% Group Net Income growth

Capex 9M 2020 results

+12% capex acceleration despite Insourcing attività di O&M Rete FS Covid emergency

Note: figures may not add up due to rounding 1. Of which about 6 €mn of Capitalized Financial Charges in 9M2020 and 9 €mn in 9M2019

Cash Flow & Net Debt Evolution 9M 2020 results

Strong operating cash flow generation

Note: figures may not add up due to rounding 1. Including Other Fixed Assets Changes 2. Including Cash Flow Hedge reserve and other

Net Debt Evolution & Financial Structure 9M 2020 results

GROSS DEBT BREAKDOWN KEY RATIOS ^{1 1}

Maturity ~5 years

Ensuring financial stability

Annex

Consolidated Income Statement¹

€ mn	9M20	9M19	Δmn	Δ%
Total Revenue	1,781	1,666	115	6.9%
Regulated Activities	1,545	1,518	27	1.8%
Transmission	1,417	1,395	22	1.5%
Dispatching	82	85	-3	-3.3%
Other 2	33	27	5	19.5%
IFRIC12	14	11	3	26.3%
Non Regulated Activities	218	130	87	66.9%
International Activities	18	17	1	4.7%
Total Costs	457	387	70	18.1%
Regulated Activities	284	285	0	-0.1%
Labour Costs	162	160	2	1.4%
External Costs	97	103	-6	-6.2%
2 Other	11	10	1	9.8%
IFRIC12	14	11	3	26.3%
Non Regulated Activities	166	94	72	76.5%
International Activities	7	8	-1	-11.8%
EBITDA	1,323	1,278	45	3.5%
D&A	458	436	22	5.0%
EBIT	865	842	23	2.7%
Net Financial Charges	70	61	9	15.2%
Pre Tax Profit	795	781	14	1.7%
Taxes	223	227	-4	-1.6%
Tax Rate (%)	28.0%	29.0%	-0.9 pp
Total Net Income	572	555	17	3.1%
Minority Interest	3	2	1	28.6%
Group Net Income	569	553	16	3.0%

Annex

Consolidated Balance Sheet

€ mn	Sep. 30,2020	Dic. 31,2019	Δmn
PP&E	14,147	13,864	283
Intangible Asset	547	543	4
Financial Inv. and Other	481	502	-21
Total Fixed Assets	15,175	14,908	266
Net WC	-1,833	-2,208	375
Funds	-141	-210	70
Net Capital Invested	13,202	12,490	711
Financed by:
Consolidated Net Debt	8,825	8,259	566
Total Shareholder's Equity	4,377	4,232	145
Total	13,202	12,490	711

Consolidated Cash Flow Annex

Total Net Income	572	555
1 D&A	455	433
Net Change in Funds	-70	-101
Operating Cash Flow	957	886
2 Δ Working Capital & Other	-347	-85
Cash Flow from Operating Activities	610	801
Capital Expenditures	-749	-670
Free Cash Flow to Equity	-139	131
Dividends & Equity 3	-427	-481
Change in Net Cash (Debt)	-566	-350

€ mn 9M20 9M19

Disclaimer

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