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Terna Investor Presentation 2025
4300_rns_2025-05-15_f1a9f61a-5a83-4a6a-a1b3-14e42f8c0167.pdf
Investor Presentation
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1Q 2025 Consolidated Results
Rome, May 15th 2025
Agenda
| Highlights | 2 |
|---|---|
| 1Q 2025 Results | 6 |
| Closing Remarks | 15 |
| Annexes | 17 |
Highlights
Latest main achievements
2025 National Development Plan:
over €23bn of investment foreseen in the next 10 years
S&P Global Ratings upgrades the rating to A- from BBB+, with stable outlook
- Moody's confirms the rating at Baa2, with stable outlook
- New issue of a 750mn green Bond and ESG-linked Revolving Credit Facility of €1.8bn refinanced
Terna Foundation starts its projects
Focus on the execution of updated Plan targets
Highlights
Demand Evolution – Last 12 months
33% of National Demand covered by RES
Highlights
1Q 2025 Key Numbers
| 1Q 2024 | 1Q 2025 | ∆ vs 1Q 2024 | |
|---|---|---|---|
| Actual €mn |
Actual €mn |
||
| Revenues | 858 | 902 | +5% |
| EBITDA | 628 | 652 | +4% |
| Group Net Income1 | 268 | 275 | +3% |
| Capex | 483 | 562 | +16% |
| Net Debt2 | 11,160 | 11,127 |
Solid P&L results and strong capex delivery
1. Attributable to Terna 2. 2024 Value related to FY
Revenues
Revenues increase in all business areas
7
Note: figures may not add up due to rounding 1. Including IFRIC12
Revenues Analysis
Both Regulated and Non Regulated revenues as growth driver
8
Notes: figures may not add up due to rounding
Opex
Operating costs dynamic driven by increasing volume of activities
9
Note: figures may not add up due to rounding; 1. Including IFRIC12
EBITDA
Steady growth from Regulated business and acceleration of Non Regulated
10
Notes: figures may not add up due to rounding
From EBITDA to Net Income
+3% increase in Group Net Income
11
Note: figures may not add up due to rounding 1. Attributable to Terna
Capex
Focus on execution of our investment plan: Capex +16%
12
Note: figures may not add up due to rounding 1. Of which about 28 €mn of Capitalized Financial Charges in 1Q25 and 14 €mn in 1Q24
Cash Flow & Net Debt Evolution
Net debt evolution under control
Note: figures may not add up due to rounding;
1. Including Other Fixed Assets Changes
2. Including Assets Held for Sale, Cash Flow Hedge reserve and other
Net Debt Evolution & Financial Structure
Ensuring long-term visibility and a solid financial structure
- 1. Percentages calculated on Gross Debt nominal value
- 2. IAS value
- 3. Key ratios calculated on Medium/Long Term Debt
Closing Remarks
Closing Remarks
Driving the energy transition and reinforcing resilience efforts
Well on track on the execution of our investment plan
Reaffirming financial stability and low-risk profile
2025 Total Grid Fee update1
Notes: 1) ARERA Resolutions and Terna's preliminary estimates, net of pass-through items
Consolidated Income Statement1
| OEmn | 1025 | 1Q24 | Amn | A% |
|---|---|---|---|---|
| Total Revenue | 902 | 858 | Ad | 5.1% |
| Regulated Activities | 755 | 730 | 25 | 3.4% |
| Transmission | 678 | 607 | 71 | 11.7% |
| Dispatching | 48 | 101 | -53 | -52 2% |
| Other2 | 12 | 11 | 1 | 7.1% |
| IFRIC12 | 17 | 10 | 6 | 59.6% |
| Non Regulated and International Activities | 141 | 128 | 19 | 14.5% |
| Total Costs | 250 | 230 | 20 | 8.5% |
| Regulated Activities | 129 | 120 | 8 | 6.8% |
| Labour Costs | 72 | 64 | 9 | 13.5% |
| External Costs | 36 | 39 | -2 | -5.9% |
| Other2 | 3 | 8 | -4 | -57.3% |
| IFRIC12 | 17 | 10 | 6 | 59 6% |
| Non Regulated Activities | 121 | 109 | 12 | 11.0% |
| International Activities | 0 | 1 | -1 | -66.7% |
| EBITDA | 652 | 628 | 24 | 3.8% |
| D&A | 219 | 209 | 10 | 4.8% |
| EBIT | 433 | 419 | 14 | 3.4% |
| Net Financial Charges | 39 | 37 | 2 | 6.3% |
| Pre Tax Profit | 394 | 382 | 12 | 3.1% |
| laxes | 119 | 112 | 7 | 6.3% |
| Tax Rate (%) | 30.1% | 29.2% | 0.9 pp | |
| Net Income | 275 | 271 | 5 | 1.8% |
| Profit/(Loss) From Discontinued Operations | 0 | -3 | 3 | 110.0% |
| Total Net Income | 276 | 268 | 8 | 3.0% |
| Minority Interest | 0 | -1 | 1 | -166.7% |
| Group Net Income | 275 | 268 | 7 | 2.6% |
Notes: figures may not add up due to rounding;
1. Managerial Accounting 2. Including Quality of Service
Consolidated Balance Sheet
| € mn | Mar. 31,2025 | Dec. 31,2024 | Amn |
|---|---|---|---|
| PP&F | 19,571 | 19,237 | 334 |
| Intangible Asset | 990 | 982 | 8 |
| Financial Inv. and Other | 541 | 485 | 62 |
| Total Fixed Assets | 21.107 | 20.704 | 403 |
| Net WC | -2.213 | -2.025 | -188 |
| Funds | 22 | 10 | 12 |
| Net Capital Invested | 18,917 | 18,689 | 228 |
| Net Assets Held for Sale | 15 | 15 | 0 |
| Total Net Capital Invested | 18,932 | 18,704 | 227 |
| Financed by: | |||
| Consolidated Net Debt | 11.127 | 11.160 | -34 |
| Total Shareholder's Equity | 7.805 | 7.544 | 261 |
| Total | 18,932 | 18,704 | 227 |
Consolidated Cash Flow
| € mn | 1025 | 1024 |
|---|---|---|
| Total Net Income | 276 | 268 |
| D&A 1 | 219 | 209 |
| Net Change in Funds | -12 | -15 |
| Operating Cash Flow | 483 | 461 |
| Δ Working Capital & Other 2 | 127 | -62 |
| Cash Flow from Operating Activities | 610 | 399 |
| Capital Expenditures | -562 | -483 |
| Free Cash Flow to Equity | 48 | -84 |
| Net Assets Held for Sale | 0 | 3 |
| Dividends & Equity3 | -15 | -12 |
| Change in Net Cash (Debt) | 34 | -93 |
21
Notes: figures may not add up due to rounding;
1. Net of assets' disposal
2. Including Other Fixed Assets Changes
3. Including Cash Flow Hedge accruals, Hybrid Green Bond and other
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.
EXECUTIVE IN CHARGE OF THE PREPARATION OF ACCOUNTING DOCUMENTS "FRANCESCO BECCALI" DECLARES, PURSUANT TO PARAGRAPH 2 OF ARTICLE 154-BIS OF THE CONSOLIDATED LAW ON FINANCE, THAT THE ACCOUNTING INFORMATION CONTAINED IN THIS PRESENTATION, FOR WHAT CONCERNS THE ACTUAL FIGURES, CORRESPONDS TO THE DOCUMENT RESULTS, BOOKS AND ACCOUNTING RECORDS.
