Terna — Investor Presentation 2022

Nov 9, 2022

9M 2022 Consolidated Results

Rome, November 9th 2022

Latest main achievements

Towards a decarbonized and sustainable future

Demand Evolution – Last 12 months

Ensuring a reliable, efficient and safe electricity system

9M 2022 Key Numbers

	9M 2021		9M 2022	∆ vs 9M 2021 restated
	Actual €mn	Restated €mn	Actual €mn
Revenues	1,902	1,890	1,992	+5%
EBITDA	1,374	1,365	1,412	+3%
Group Net Income1	580	580	587	+1%
Capex	925	923	1,033	+12%
		FY 2021	9M 2022
Net Debt		10,003	8,651

Growth in all P&L lines and solid capex acceleration

1. Attributable to Terna

Note: 2021 results have been restated for International Activities Held for Sale, according to IFRS5 accounting principle

Revenues

Revenues increase in all business areas

Note: figures may not add up due to rounding 1. Including IFRIC12

Revenues Analysis

NON REGULATED AND INTERNATIONAL

€mn

Regulated investments as growth driver

Opex

Operating costs evolution driven by business acceleration

Note: figures may not add up due to rounding 1. Including IFRIC12

EBITDA

Over 3% EBITDA growth

From EBITDA to Net Income

Capex

Well on track with capex execution

Note: figures may not add up due to rounding

1. Of which about 17 €mn of Capitalized Financial Charges in 2022 and 8 €mn in 2021

Cash Flow & Net Debt Evolution

Positive impact by debt management and cash flow generation

1. Including Other Fixed Assets Changes

2. Including Assets Held for Sale, Cash Flow Hedge reserve, Hybrid Green Bond and other

Note: figures may not add up due to rounding

Net Debt Evolution & Financial Structure

Solid and diversified financial structure

Closing Remarks

Net debt and cost of debt under control

Well on track on execution

2022 guidance

Consolidated Income Statement¹

€ mn	9M22	9M21	Δmn	Δ%
Total Revenue	1,992	1,890	102	5.4%
Regulated Activities	1,720	1,644	77	4.7%
Transmission	1,485	1,499	-14	-1.0%
Dispatching	172	85	86	101.5%
Other²	27	32	-5	-14.4%
IFRIC12	36	27	9	34.3%
Non Regulated Activities	272	246	26	10.4%
International Activities	1	0	0	100.0%
Total Costs	580	525	55	10.5%
Regulated Activities	344	316	28	8.8%
Labour Costs	181	169	12	7.2%
External Costs	112	104	8	8.1%
Other²	15	17	-2	-12.4%
IFRIC12	36	27	9	34.3%
Non Regulated Activities	232	204	28	13.9%
International Activities	5	5	-1	-13.2%
EBITDA	1,412	1,365	47	3.5%
D&A	516	491	25	5.1%
EBIT	896	874	22	2.6%
Net Financial Charges	56	57	-1	- 2.1%
Pre Tax Profit	840	817	23	2.9%
Taxes	237	229	8	3.6%
Tax Rate (%)	28.2%	28.0%	-	0.2 pp
Net Income	603	588	15	2.6%
Profit/(Loss) From Discontinued Operations Net Financial Charges	-15	-6	-9	162.5%
Total Net Income	588	582	6	1.1%
Minority Interest	2	2	0	-15.8%
Group Net Income	587	580	7	1.1%

2. Including Quality of Service

Note: figures may not add up due to rounding 1. Managerial Accounting

Consolidated Income Statement¹

€ mn	9M21 Reported	Restatement	9M21 Restated
Total Revenue	1,902	-12	1,890
Regulated Activities	1,644	0	1,644
Transmission	1,499	0	1,499
Dispatching	85	0	85
Other²	32	0	32
IFRIC12	27	0	27
Non Regulated Activities	246	0	246
International Activities	12	-12	0
Total Costs	528	-3	525
Regulated Activities	316	0	316
Labour Costs	169	0	169
External Costs	104	0	104
Other²	17	0	17
IFRIC12	27	0	27
Non Regulated Activities	204	0	204
International Activities	8	-3	5
EBITDA	1,374	-9	1,365
D&A	491	0	491
EBIT	883	-9	874
Net Financial Charges	68	-11	57
Pre Tax Profit	814	2	817
Taxes	232	-3	229
Tax Rate (%)	28.5%	-0.5 pp	28.0%
Net Income	582	6	588
Profit/(Loss) From Discontinued Operations		-6	-6
Total Net Income	582	0	582
Minority Interest	2	0	2
Group Net Income	580	0	580

2. Including Quality of Service

Consolidated Balance Sheet

€ mn	Sep. 30,2022	Dec. 31,2021	Δmn
PP&E	15,729	15,317	413
Intangible Asset	718	657	62
Financial Inv. and Other	531	380	151
Total Fixed Assets	16,978	16,353	625
Net WC	-2,354	-1,707	-647
Funds	-54	-48	-6
Net Capital Invested	14,570	14,598	-28
Net Assets Held for Sale	209	118	91
Total Net Capital Invested	14,779	14,716	64
Financed by:
Consolidated Net Debt	8,651	10,003	-1,351
Total Shareholder's Equity	6,128	4,713	1,415
Total	14,779	14,716	64

Consolidated Cash Flow

€ mn	9M22	9M21
Total Net Income	589	582
D&A¹	514	481
Net Change in Funds	6	-43
Operating Cash Flow	1,108	1,020
Δ Working Capital & Other²	541	-161
Cash Flow from Operating Activities	1,649	859
Capital Expenditures	-1,033	-925
Free Cash Flow to Equity	616	-67
Net Assets Held for Sale	-91
Dividends & Equity³	827	-334
Change in Net Cash (Debt)	1,351	-401

2022 Total Grid Fee*

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.

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Notes