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Terna Investor Presentation 2021
4300_rns_2021-07-29_cf0f3459-04b0-4b69-9dce-1e2ecc17c0c0.pdf
Investor Presentation
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1H2021 Consolidated Results
1
July 29th 2021
Agenda
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1H21 1H20
Demand Evolution – Last 12 months Highlights
DEMAND AS REPORTED (TWh)
1H 2021 data:
- National Demand at 155 TWh, o/w ~38% covered by RES
- Net Total Production at 134 TWh, o/w ~44% covered by RES
Electricity demand recovery confirmed in 1H21
Ten-year Development Plan 2021: Grid Investments Highlights
| A Plan to support the energy transition |
▪ Increase transport capacity solving grid congestions ▪ Grid rationalization in the main metropolitan areas ▪ Increase foreign interconnections ▪ Increase safety and resiliency of the system |
||
|---|---|---|---|
| Highest level of investments ever for the Country |
▪ Investments up by 25% compared to the previous 10-year Plan ▪ Investments to enable the energy transition and achieve decarbonization targets set by Europe |
||
| Green and sustainable development projects |
▪ Transmission investments considered sustainable according to the European Taxonomy criteria ▪ Focused on achieving national targets for the integration of renewables and the phase out of coal* |
Over 18 €bn: the highest investment plan ever
Highlights
Ten-year Development Plan 2021: Benefits for the System
Grid investments as a key tool for the energy transition, the security of supply and the reduction of costs for final users
1H 2021 Key Numbers Highlights
| 1H 2021 | 2 1H 2020 |
∆ vs 1H2020 | |
|---|---|---|---|
| Revenues | 1,259 | 1,183 | +6% |
| EBITDA | 910 | 876 | +4% |
| Group Net Income1 |
385 | 378 | +2% |
| Capex | 602 | 428 | +41% |
| 1H 2021 | FY 2020 | |
|---|---|---|
| Net Debt | 9,735 | 9,173 |
Strong capex increase to serve system needs
1. Attributable to Terna
2. 2020 figures reported into Interim Financial Report 1H2020, excluding the restatement under IFRS 3
1H 2021 results Revenues
Revenues increase driven by Regulated and Non Regulated
Note: figures may not add up due to rounding 1. Including IFRIC12
- Construction margin, including IFRIC12
Revenues Analysis 1H 2021 results
Regulated investments as a growth driver
Operating costs evolution driven mainly by business acceleration
EBITDA 1H 2021 results
Insourcing attività di O&M Rete FS 4% EBITDA growth
1H 2021 results From EBITDA to Net Income
Well on track to reach 2021 guidance
Note: figures may not add up due to rounding 1. Attributable to Terna. Excluding Minorities
1H 2021 results Capex
Over 40% capex acceleration
Cash Flow & Net Debt Evolution 1H 2021 results
Operating cash flow supports investment activity
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 1H 2021 results
Maintaining a solid financial structure despite capex acceleration
2. IAS value
Playing our role to relaunch the Italian economy
Maximizing the effort to support the decarbonization path
Guidance confirmed
1H21 CONSOLIDATED RESULTS JULY 29th 2021
Consolidated Income Statement1 Annex
| € mn | 1H21 | 1H20 | Δmn | Δ% |
|---|---|---|---|---|
| Total Revenue | 1,259 | 1,183 | 76 | 6.4% |
| Regulated Activities | 1,093 | 1,025 | 68 | 6.7% |
| Transmission | 998 | 939 | 59 | 6.3% |
| Dispatching | 55 | 54 | 2 | 3.4% |
| 2 Other |
25 | 24 | 0 | 1.2% |
| IFRIC12 | 15 | 8 | 7 | 83.1% |
| Non Regulated Activities | 163 | 146 | 17 | 11.7% |
| International Activities | 3 | 12 | -10 | -78.0% |
| Total Costs | 348 | 307 | 41 | 13.4% |
| Regulated Activities | 212 | 197 | 15 | 7.7% |
| Labour Costs | 113 | 115 | -2 | -1.8% |
| External Costs | 72 | 66 | 6 | 8.6% |
| Other 2 |
12 | 7 | 5 | 63.5% |
| IFRIC12 | 15 | 8 | 7 | 83.1% |
| Non Regulated Activities | 131 | 106 | 25 | 23.8% |
| International Activities | 5 | 5 | 1 | 14.9% |
| EBITDA | 910 | 876 | 34 | 3.9% |
| D&A | 326 | 302 | 23 | 7.7% |
| EBIT | 585 | 574 | 11 | 1.9% |
| Net Financial Charges | 41 | 39 | 2 | 5.0% |
| Pre Tax Profit | 544 | 535 | 9 | 1.7% |
| Taxes | 158 | 155 | 3 | 1.7% |
| Tax Rate (%) | 29.0% | 29.0% | - | |
| Total Net Income | 386 | 380 | 7 | 1.7% |
| Minority Interest | 1 | 2 | -1 | -33.3% |
| Group Net Income | 385 | 378 | 7 | 1.9% |
Note: figures may not add up due to rounding 1. Managerial Accounting
2. Including Quality of Service
Annex
Consolidated Balance Sheet
| € mn € mn |
Jun. 30,2021 | Dic. 31,2020 | Δmn |
|---|---|---|---|
| PP&E | 14,825 | 14,560 | 265 |
| Intangible Asset | 582 | 578 | 5 |
| Financial Inv. and Other | 533 | 508 | 25 |
| Total Fixed Assets | 15,940 | 15,646 | 294 |
| Net WC | -1,639 | -1,936 | 297 |
| Funds | -91 | -121 | 31 |
| Net Capital Invested | 14,210 | 13,588 | 622 |
| Financed by: | |||
| Consolidated Net Debt | 9,735 | 9,173 | 562 |
| Total Shareholder's Equity | 4,476 | 4,416 | 60 |
| Total | 14,210 | 13,588 | 622 |
Consolidated Cash Flow Annex
| € mn | 1H21 | 1H20 |
|---|---|---|
| Total Net Income | 386 | 380 |
| 1 D&A |
317 | 299 |
| Net Change in Funds | -31 | -48 |
| Operating Cash Flow | 672 | 631 |
| Δ Working Capital & Other 2 |
-306 | -387 |
| Cash Flow from Operating Activities | 366 | 244 |
| Capital Expenditures | -602 | -428 |
| Free Cash Flow to Equity | -236 | -184 |
| Dividends & Equity 3 |
-326 | -404 |
| Change in Net Cash (Debt) | -562 | -588 |
2. Including Other Fixed Assets Changes
3. Including Cash Flow Hedge accruals and other
2021 Total Grid Fee* Annex
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 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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