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Terna Investor Presentation 2025
4300_rns_2025-07-29_aaa3f7a0-b45e-4cd8-b3c0-8667d3ab2e2a.pdf
Investor Presentation
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1H 2025 Consolidated Results
Rome, July 29th 2025
1
| Agenda | 1H 2025 Consolidated Results | ||
|---|---|---|---|
| Highlights | 3 | ||
| 1H 2025 Results | 8 | ||
| Closing Remarks | 17 | ||
| Annexes | 19 |
Highlights 1H 2025 Consolidated Results
Latest main achievements (1/2)
Grita 2: MoU for the development of the interconnection signed
Terna and Microsoft: agreement on digitalization, innovation and security signed
Tyrrhenian Link: laying of the first submarine cable of the eastern section completed
Adriatic innovation zone launched
Strategic partnership with Polytechnic Universities launched
Well on track on the execution of the Plan
Highlights 1H 2025 Consolidated Results
Latest main achievements (2/2)
Moody's improves the outlook to positive and confirms the rating at Baa2
€1.5 bn secured for the Adriatic Link
Terna successfully launched its first European Green Bond for a nominal amount of €750 mn
DIVIDEND
FINANCING
RATING
2024 final dividend of 27.70 €/cents per share paid in June
Strengthening company's financial solidity
In May 56% of national demand covered by RES
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| CERTIFIED |
Highlights 1H 2025 Consolidated Results
1H 2025 Key Numbers
| 1H 2025 | 1H 2024 | Δ vs 1H 2024 | ||
|---|---|---|---|---|
| Actual €mn |
Actual €mn |
|||
| Revenues | 1,894 | 1,754 | +8% | |
| EBITDA | 1,360 | 1,257 | +8% | |
| Group Net Income1 | 588 | 545 | +8% | |
| Capex | 1,319 | 1,042 | +27% | |
| Net Debt2 | 11,970 | 11,160 |
1. Attributable to Terna; 2. 2024 Value related to year-end
Record level on Capex
€mn
Revenues
Regulated Activities1 Non Regulated and International Activities
High-single digit revenues growth
Note: figures may not add up due to rounding; 1. Including IFRIC12
Revenues Analysis
Regulated activities as main driver for revenues growth
Notes: figures may not add up due to rounding
Opex dynamic led by organic activities
Note: figures may not add up due to rounding; 1. Including IFRIC12
EBITDA
EBITDA growth supported by all business areas
Notes: figures may not add up due to rounding
From EBITDA to Net Income
€mn
Group Net Income up by 8%
Note: figures may not add up due to rounding; 1. Attributable to Terna.
Capex
New all-time high Capex: +27% YoY
Note: figures may not add up due to rounding; 1. Of which about 56 €mn of Capitalized Financial Charges in 1H25 and 32 €mn in 1H24
Cash Flow & Net Debt Evolution
Net debt evolution mainly driven by capex acceleration
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
Preserving a robust and diversified financial profile
1. Percentages calculated on Gross Debt nominal value; 2. IAS value; 3 Key ratios calculated on Medium/Long Term Debt
Closing Remarks
Closing Remarks 1H 2025 Consolidated Results
Solid results delivered even in a challenging scenario
Focus on the execution of our Plan targets
Confirming 2025 guidance
Annexes
2025 Total Grid Fee update1
Notes: 1) ARERA Resolutions and Terna's preliminary estimates, net of pass-through items
Annexes 1H 2025 Consolidated Results
Consolidated Income Statement1
| Semn | 11-25 | 1H24 | Amn | A% |
|---|---|---|---|---|
| Total Revenue | 1.894 | 1.754 | 140 | 8.0% |
| Regulated Activities | 1,594 | 1,473 | 122 | 8.3% |
| Transmission | 1,418 | 1,214 | 204 | 16.8% |
| Dispatching | 95 | 202 | -107 | -53.1% |
| Other2 | 28 | 23 | 5 | 22.0% |
| IFRIC12 | 54 | 34 | 20 | 59.8% |
| Non Regulated and International Activities | 300 | 282 | 18 | 6.5% |
| Total Costs | 534 | 497 | 37 | 7.5% |
| Regulated Activities | 293 | 260 | 32 | 12.5% |
| Labour Costs | 146 | 127 | 19 | 14.7% |
| External Costs | 84 | 87 | -3 | -3.1% |
| Other2 | 9 | 13 | -4 | -29 4% |
| IFRIC12 | 54 | 34 | 20 | 59.8% |
| Non Regulated Activities | 241 | 235 | 6 | 2.6% |
| International Activities | 1 | 2 | -1 | -68.4% |
| EBITDA | 1,360 | 1,257 | 103 | 8.2% |
| D&A | 447 | 421 | 26 | 6.1% |
| EBIT | 913 | 836 | 77 | 9.2% |
| Net Financial Charges | 76 | 63 | 13 | 20.5% |
| Pre Tax Profit | 837 | 773 | 64 | 8.3% |
| laxes | 249 | 227 | 22 | 9.6% |
| Tax Rate (%) | 29.8% | 29.4% | 0.4 pp | |
| Net Income | 588 | 545 | 42 | 7.7% |
| Profit/(Loss) From Discontinued Operations | 1 | -1 | 2 | 250.0% |
| Total Net Income | 588 | 545 | 44 | 8.0% |
| Minority Interest | 1 | 0 | 1 | 600.0% |
| Group Net Income | 588 | 545 | 43 | 7.9% |
Notes: figures may not add up due to rounding; 1) Managerial Accounting 2) Including Quality of Service
Annexes 1H 2025 Consolidated Results
Consolidated Balance Sheet
| € mn | Jun. 30,2025 | Dec. 31,2024 | Amn |
|---|---|---|---|
| O PP&E |
20,026 | 19,237 | 789 |
| Intangible Asset | 1,076 | 982 | વેરે |
| Financial Inv. and Other | 545 | 485 | 60 |
| Total Fixed Assets | 21,646 | 20,704 | 942 |
| Net WC | -2.195 | -2,025 | -170 |
| Funds | 34 | 10 | 24 |
| Net Capital Invested | 19,485 | 18,689 | 796 |
| Net Assets Held for Sale | 14 | 15 | -2 |
| Total Net Capital Invested | 19,498 | 18,704 | 794 |
| Financed by: | |||
| Consolidated Net Debt | 11,970 | 11,160 | 809 |
| Total Shareholder's Equity | 7,529 | 1,544 | -16 |
| Total | 19.498 | 18.704 | 794 |
Annexes 1H 2025 Consolidated Results
Consolidated Cash Flow
| € mn | 1125 | 1H24 |
|---|---|---|
| Total Net Income | 588 | 545 |
| D&A 1 | 445 | 417 |
| Net Change in Funds | -24 | -31 |
| Operating Cash Flow | 1,009 | 931 |
| △ Working Capital & Other- | 103 | -128 |
| Cash Flow from Operating Activities | 1,112 | 802 |
| Capital Expenditures | -1.319 | -1,042 |
| Free Cash Flow to Equity | -207 | -240 |
| Net Assets Held for Sale | 2 | 6 |
| Dividends & Equity® | -604 | 400 |
| Change in Net Cash (Debt) | -809 | 166 |
Notes: figures may not add up due to rounding; 1) Net of assets' disposal 2) Including Other Fixed Assets Changes; 3) Including Assets Held for Sale, Cash Flow Hedge reserve and other
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.
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.
