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Terna Investor Presentation 2021
4300_rns_2021-11-10_5187a6a6-8494-4dfd-9f85-b7a7965aea99.pdf
Investor Presentation
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9M 2021 Consolidated Results
1
November 10th 2021
7
Latest main achievements Highlights
Regulated Activities
- Conclusion of the first consultation phase for the Tyrrhenian Link and beginning of the second one
- Conclusion of the first consultation phase for the Adriatic Link
Financial Structure
- Agreement signed with European Investment Bank for a loan of € 300 million for the energy transition
- Revision of Terna's Outlook from stable to positive by S&P rating agency
Activities
▪ LT Acquisition
ESG commitment
▪ Confirmation in the Stoxx Global ESG Leaders Index
▪ Inclusion in the MIB 40 ESG index
Focus on Plan execution and ESG commitment
Highlights Demand Evolution – Last 12 months
- 9M 2021
- National Demand at 239 TWh, o/w ~37% covered by RES
- Net Total Production at 207 TWh, o/w ~43% covered by RES
Electricity demand higher than pre-Covid levels
9M 2021 Key Numbers Highlights
| 9M 2021 | 2 9M 2020 |
∆ vs 9M2020 | |
|---|---|---|---|
| Revenues | 1,902 | 1,781 | +7% |
| EBITDA | 1,374 | 1,323 | +4% |
| Group Net Income1 |
580 | 569 | +2% |
| Capex | 925 | 749 | +23% |
| 9M 2021 | FY 2020 | |
|---|---|---|
| Net Debt | 9,573 | 9,173 |
Well on track to meet 2021 targets
2. 2020 figures reported into Interim Financial Report 9M2020, excluding the restatement under IFRS 3
1,545 1,644 218 246 18 12 1,781 99 28 -6 1.902 9M20 ∆ Regulated Activities ∆ Non Regulated Activities ∆ International Activities 9M21 1 2 €mn Regulated Activities1 Non Regulated Act. International Act.2 +121 +6.8% , Revenues 9M 2021 results
Revenues increase driven both by Regulated and Non Regulated Activities
Note: figures may not add up due to rounding 1. Including IFRIC12
2. Construction margin, including IFRIC12
9M 2021 results Revenues Analysis
Higher contribution from Regulated activities
9M 2021 results Opex
Operating costs evolution driven by higher volume of activity
9M 2021 results EBITDA
EBITDA growth driven by Regulated Activities
9M 2021 results From EBITDA to Net Income
Solid results delivered
Note: figures may not add up due to rounding 1. Attributable to Terna. Excluding Minorities
9M 2021 results Capex
Maximizing effort to support the decarbonization path
Note: figures may not add up due to rounding
1. Of which about 8 €mn of Capitalized Financial Charges in 2021 and 6 €mn in 2020
9M 2021 results Cash Flow & Net Debt Evolution
Strong operating cash flow to cover investment needs
Note: figures may not add up due to rounding
1. Including Other Fixed Assets Changes
2. Including Cash Flow Hedge reserve and other
9M 2021 results Net Debt Evolution & Financial Structure
Ensuring financial stability
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
Annex Consolidated Income Statement1
| € mn | 9M21 | 9M20 | Δmn | Δ% |
|---|---|---|---|---|
| Total Revenue | 1,902 | 1,781 | 121 | 6.8% |
| Regulated Activities | 1,644 | 1,545 | 99 | 6.4% |
| Transmission | 1,499 | 1,417 | 83 | 5.9% |
| Dispatching | 85 | 82 | 3 | 3.8% |
| Other 2 |
32 | 33 | -1 | -2.4% |
| IFRIC12 | 27 | 14 | 13 | 96.4% |
| Non Regulated Activities | 246 | 218 | 28 | 13.0% |
| International Activities | 12 | 18 | -6 | -33.0% |
| Total Costs | 528 | 457 | 70 | 15.4% |
| Regulated Activities | 316 | 284 | 32 | 11.2% |
| Labour Costs | 169 | 162 | 6 | 3.8% |
| External Costs | 104 | 97 | 7 | 6.7% |
| 2 Other |
17 | 11 | 6 | 51.8% |
| IFRIC12 | 27 | 14 | 13 | 96.4% |
| Non Regulated Activities | 204 | 166 | 38 | 22.8% |
| International Activities | 8 | 7 | 1 | 12.2% |
| EBITDA | 1,374 | 1,323 | 51 | 3.8% |
| D&A | 491 | 458 | 33 | 7.2% |
| EBIT | 883 | 865 | 17 | 2.0% |
| Net Financial Charges | 68 | 70 | -2 | -2.8% |
| Pre Tax Profit | 814 | 795 | 19 | 2.4% |
| Taxes | 232 | 223 | 9 | 4.0% |
| Tax Rate (%) | 28.5% | 28.0% | - | +0.5 pp |
| Total Net Income | 582 | 572 | 10 | 1.8% |
| Minority Interest | 2 | 3 | -1 | -29.6% |
| Group Net Income | 580 | 569 | 11 | 2.0% |
Note: figures may not add up due to rounding 1. Managerial Accounting 2. Including Quality of Service
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
Annex
Consolidated Balance Sheet
| € mn € mn |
Sep. 30,2021 | Dic. 31,2020 | Δmn |
|---|---|---|---|
| PP&E | 14,936 | 14,560 | 376 |
| Intangible Asset | 600 | 578 | 22 |
| Financial Inv. and Other | 540 | 508 | 32 |
| Total Fixed Assets | 16,076 | 15,646 | 430 |
| Net WC | -1,760 | -1,936 | 176 |
| Funds | -78 | -121 | 43 |
| Net Capital Invested | 14,237 | 13,588 | 649 |
| Financed by: | |||
| Consolidated Net Debt | 9,573 | 9,173 | 401 |
| Total Shareholder's Equity | 4,664 | 4,416 | 248 |
| Total | 14,237 | 13,588 | 649 |
Annex Consolidated Cash Flow
| € mn | 9M21 | 9M20 |
|---|---|---|
| Total Net Income | 582 | 572 |
| 1 D&A |
481 | 455 |
| Net Change in Funds | -43 | -70 |
| Operating Cash Flow | 1,020 | 957 |
| 2 Δ Working Capital & Other |
-161 | -347 |
| Cash Flow from Operating Activities | 859 | 610 |
| Capital Expenditures | -925 | -750 |
| Free Cash Flow to Equity | -67 | -139 |
| 3 Dividends & Equity |
-334 | -427 |
| Change in Net Cash (Debt) | -401 | -566 |
2. Including Other Fixed Assets Changes
3. Including Cash Flow Hedge accruals and other
Annex 2021 Total Grid Fee*
Disclaimer
THIS DOCUMENT HAS BEEN PREPARED BY TERNA S.P.A. (THE "COMPANY") FOR THE SOLE PURPOSE DESCRIBED HEREIN. IN NO CASE MAY IT BE INTERPRETED AS AN OFFER OR INVITATION TO SELL OR PURCHASE ANY SECURITY ISSUED BY THE COMPANY OR ITS SUBSIDIARIES.
THE CONTENT OF THIS DOCUMENT HAS A MERELY INFORMATIVE AND PROVISIONAL NATURE AND THE STATEMENTS CONTAINED HEREIN HAVE NOT BEEN INDEPENDENTLY VERIFIED. NEITHER THE COMPANY NOR ANY OF ITS REPRESENTATIVES SHALL ACCEPT ANY LIABILITY WHATSOEVER (WHETHER IN NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY FROM THE USE OF THIS DOCUMENT OR ITS CONTENTS OR OTHERWISE ARISING IN CONNECTION WITH THIS DOCUMENT OR ANY MATERIAL DISCUSSED DURING THE PRESENTATION.
THIS DOCUMENT MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON. THE INFORMATION CONTAINED HEREIN AND OTHER MATERIAL DISCUSSED AT THE CONFERENCE CALL MAY INCLUDE FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT THE COMPANY'S BELIEFS AND EXPECTATIONS. THESE STATEMENTS ARE BASED ON CURRENT PLANS, ESTIMATES, PROJECTIONS AND PROJECTS, AND CANNOT BE INTERPRETED AS A PROMISE OR GUARANTEE OF WHATSOEVER NATURE.
HOWEVER, FORWARD-LOOKING STATEMENTS INVOLVE INHERENT RISKS AND UNCERTAINTIES AND ARE CURRENT ONLY AT THE DATE THEY ARE MADE. WE CAUTION YOU THAT A NUMBER OF FACTORS COULD CAUSE THE COMPANY'S ACTUAL RESULTS AND PROVISIONS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD-LOOKING STATEMENT. SUCH FACTORS INCLUDE BUT ARE NOT LIMITED TO: TRENDS IN COMPANY'S BUSINESS, ITS ABILITY TO IMPLEMENT COST-CUTTING PLANS, CHANGES IN THE REGULATORY ENVIRONMENT, DIFFERENT INTERPRETATION OF THE LAW AND REGULATION, ITS ABILITY TO SUCCESSFULLY DIVERSIFY AND THE EXPECTED LEVEL OF FUTURE CAPITAL EXPENDITURES. THEREFORE, YOU SHOULD NOT PLACE UNDUE RELIANCE ON SUCH FORWARD-LOOKING STATEMENTS. TERNA DOES NOT UNDERTAKE ANY OBLIGATION TO UPDATE FORWARD-LOOKING STATEMENTS TO REFLECT ANY CHANGES IN TERNA'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGES IN EVENTS.
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