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9M2018 Consolidated Results

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Terna

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9M2018 Consolidated Results

  1. 1. 1 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 November 9th 2018 9M18 Consolidated Results
  2. 2. 2 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 Agenda 9M18 Results 3 Annexes 15
  3. 3. 3 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 9M18 Results
  4. 4. 4 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 26.3 26.6 26.9 27.2 26.1 27.8 24.1 26.0 27.0 30.4 26.5 27.0 23 25 27 29 31 33 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Monthy energy demand Previous Year Demand Evolution – Last 12 months DEMAND AS REPORTED (TWh) Highlights (1/2) Note: 2016 and 2017 final figures. 2018 preliminary figures Increasing contribution from renewable sources 9M18 data: ▪ National Demand at 242 TWh • o/w 36% covered by RES vs 34% in 9M17 ▪ Net Total Production at 210 TWh • Hydro increased by 24% Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 0.9% 1.5% 1.7% -2.5% 3.5% 3.9% 0.7% 0.1% -3.5% 1.3% -1.1% 3.6% Δ % 0.6% 9M18 9M17 242.2 240.7 YoY Change
  5. 5. 5 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 Solid results confirm FY guidance 9M 2018 Key Numbers 1. Directly including the margin of the assets in concession implemented abroad 2. Attributable to Terna 3. Ex dividend date: November 19th 2018. Payment date: November 21st 2018 9M 2017€mn Revenues1 +3% EBITDA +2% Group Net Income2 +2% Total Group Capex +3% 9M 2018 FY 2017 Net Debt 7,592 7,796 Δ vs 9M179M 2018 1,625 1,570 1,230 1,207 542 529 561 545 Highlights (2/2) 7.87€cents/share 3 2018 Interim Dividend
  6. 6. 6 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 1,570 1,625 1,458 1,481 46 59 66 801 623 13 14 5 9M17 ∆ Regulated Activities ∆ Non Regulated Activities ∆ Tamini ∆ International Activities 9M18 Revenues 9M 2018 results Note: figures may not add up due to rounding 1. Including IFRIC12 2. Construction margin, including IFRIC12 Insourcing attività di O&M Rete FS Solid growth in all business lines 1 2 €mn +26mn Non Regulated Activities +55 +3.5% Regulated Activities1 Non Regulated Act. Tamini International Act.2 1,625
  7. 7. 7 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 1,347 1,348 85 1 18 1 2 103 16 17 10 12 1,458 1,481 9M17 ∆ Transmission ∆ Dispatching ∆ Other ∆ IFRIC12 9M18 46 59 66 13 14 80 112 138 9M17 ∆ Non Regulated Activities ∆ Tamini 9M18 Revenues Analysis 9M 2018 results €mn REGULATED ACTIVITIES €mn NON REGULATED ACTIVITIES +23 +1.6% +26 +23.5% Higher contribution from Regulated and Non Regulated Activities Transmission Other Dispatching IFRIC 12 Tamini Non Regulated Act. Note: figures may not add up due to rounding
  8. 8. 8 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 363 395 272 288 16 22 71 79 4 616 5 8 2 9M17 ∆ Regulated Activities ∆ Non Regulated Activities ∆ Tamini ∆ International Activities 9M18 1 +31 +8.7% €mn Non Regulated Activities Opex 9M 2018 results Note: figures may not add up due to rounding 1. Including IFRIC12 Insourcing attività di O&M Rete FSOpex evolution driven by Regulated and Non Regulated growth Regulated Activities1 Non Regulated Act. Tamini International Act.
  9. 9. 9 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 16 22 71 5 8 79 88 101 9M17 ∆ Non Regulated Activities ∆ Tamini 9M18 153 156 109 3 11 2 120 10 12 272 288 9M17 ∆ Labour Costs ∆ External Costs & Other ∆ IFRIC12 9M18 Opex Analysis 9M 2018 results Insourcing attività di O&M Rete FS Higher volumes of activities and increasing effort on maintenance programs €mn REGULATED ACTIVITIES €mn NON REGULATED ACTIVITIES +16 +5.8% +13 +15.3% Labour Costs External Costs & Other IFRIC 12 Tamini Non Regulated Act. Note: figures may not add up due to rounding
  10. 10. 10 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 1,207 1,230 9M17 9M18 1,186 1,193 7 9M17 ∆ 9M18 EBITDA 9M 2018 results Insourcing attività di O&M Rete FS2% growth at EBITDA level €mn TOTAL EBITDA €mn REGULATED ACTIVITIES €mn NON REGULATED ACTIVITIES +23 +1.9% Note: figures may not add up due to rounding 24 37 13 9M17 ∆ 9M18
  11. 11. 11 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 1,230 830 542 529 400 67 218 EBITDA D&A EBIT Net Financial Expenses Taxes Group Net Income Group Net Income 9M17 From EBITDA to Net Income Note: figures may not add up due to rounding 1. Attributable to Terna. Excluding 3.5 €mn of Minorities in 9M18. 9M 2018 results 2% growth at Net Income level 1 €mn 1 +2% YoY
  12. 12. 12 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 14% 86% Incentivized Investments Other Regulated 72 68 435 410 39 84 545 561 9M17 9M18 Incentivized Investments Other Regulated Other Capex 9M 2018 results Insourcing attività di O&M Rete FS 2018 Capex well on track TOTAL CAPEX €mn 21 REGULATED CAPEX 478€mn Note: figures may not add up due to rounding 1. I-NPR1+O-NPR1 in line with ARERA Resolution n. 579/17 2. Of which about 12 €mn of Capitalized Financial Charges in 9M18
  13. 13. 13 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 7,796 7,592 904 169 561 307 Dec.31, 2017 Operating Cash Flow Δ WC & Other Capex Dividends & Equity Sep. 30, 2018 9M 2018 results Note: figures may not add up due to rounding 1. Including Other Fixed Assets Changes 2. Including Cash Flow Hedge reserve and other Cash Flow & Net Debt Evolution 900 €mn of Operating Cash Flow €mn 2 Free Cash Flow to Equity +512 -205 1
  14. 14. 14 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 75% 24% 1% Terna SpA Bonds EIB Banks 9M 2018 results Net Debt Evolution & Financial Structure 1. Percentages and key ratios calculated on Gross Debt nominal value 2. IAS value Maintaining a solid balance sheet GROSS DEBT BREAKDOWN KEY RATIOS 1 1 Fixed/Floating Ratio Calculated on Gross Debt 100% Fixed Maturity 5.4 years 9.6 €bn 2
  15. 15. 15 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 Annexes
  16. 16. 16 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 € mn 9M18 9M17 Δmn Δ% Total Revenue 1,625 1,570 55 3.5% Regulated Activities 1,481 1,458 23 1.6% Transmission 1,348 1,347 1 0.1% Dispatching 103 85 18 21.7% Other 17 16 1 8.1% IFRIC12 12 10 2 21.2% Non Regulated Activities 138 112 26 23.5% International Activities 6 0.9 5 n.m. Total Costs 395 363 31 8.7% Regulated Activities 288 272 16 5.8% Labour Costs 156 153 3 2.0% External Costs 106 96 10 10.1% Other 14 13 1 6.7% IFRIC12 12 10 2 21.2% Non Regulated Activities 101 88 13 15.3% International Activities 6 4 2 66.7% EBITDA 1,230 1,207 23 1.9% D&A 400 390 10 2.5% EBIT 830 817 13 1.6% Net Financial Charges 67 68 -2 -2.2% Pre Tax Profit 763 749 15 2.0% Taxes 218 222 -3 -1.5% Tax Rate (%) 28.6% 29.6% -1.0 pp Total Net Income 545 527 18 3.4% Minority Interest 4 -2 5 n.m. Group Net Income 542 529 13 2.4% 1. Managerial Accounting 2. 9M2017 restated 3. Including Quality of Service Consolidated Income Statement1 Annex 3 3 2
  17. 17. 17 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 € mn 1Q18 1Q17 Δ 2Q18 2Q17 Δ 3Q18 3Q17 Δ Total Revenue 538 524 14 542 522 20 546 525 21 Regulated Activities 488 490 -2 492 477 14 501 490 11 Transmission 451 451 1 447 444 3 450 453 -3 Dispatching 29 29 0 31 27 5 43 29 14 Other 5 8 -4 10 4 7 3 4 -2 IFRIC12 3 2 1 3 3 0 6 4 1 Non Regulated Act. 47 34 13 47 44 3 44 34 10 International Activities 3 0 3 2 0 2 1 1 0 Total Costs 129 121 7 137 130 7 129 113 17 Regulated Activities 95 93 2 99 97 2 94 82 12 Labour Costs 54 53 0 55 54 1 48 46 1 External Costs 34 31 3 37 35 2 34 30 4 Other 4 7 -3 4 5 -1 6 1 5 IFRIC12 3 2 1 3 3 0 6 4 1 Non Regulated Act. 32 27 5 36 32 4 33 29 4 International Activities 2 1 1 2 1 1 2 2 1 EBITDA 409 403 7 406 392 14 416 412 4 D&A 133 130 2 135 131 4 133 129 3 EBIT 277 273 4 271 261 9 284 283 1 Net Financial Charges 25 21 4 17 19 -2 25 29 -4 Pre Tax Profit 252 252 0 254 242 12 258 254 4 Taxes 69 74 -5 74 70 4 76 78 -2 Tax Rate (%) 27.2% 29.2% -2.0% 29.3% 29.0% 0.2% 29.2% 30.6% -1.3% Total Net Income 184 179 5 179 172 8 183 177 6 Minority Interest 1 -1 2 1 0 1 2 -1 3 Group Net Income 183 179 3 178 172 6 181 178 4 P&L Quarterly Analysis Annex 1. Unaudited Managerial Accounting 2. Including Quality of Service 3. Construction margin, including IFRIC 12 2 2 3 1 1 1
  18. 18. 18 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 € mn 1Q17 2Q17 3Q17 4Q17 FY17 Total Revenue 524 522 525 592 2,163 Regulated Activities 490 477 490 510 1,967 Transmission 451 444 453 457 1,804 Dispatching 29 27 29 27 112 Other 8 4 4 15 31 IFRIC12 2 3 4 11 21 Non Regulated Act. 34 44 34 77 189 International Activities 0 0 1 5 6 Total Costs 121 130 113 196 559 Regulated Activities 93 97 82 154 426 Labour Costs 53 54 46 65 218 External Costs 31 35 30 59 155 Other 7 5 1 19 32 IFRIC12 2 3 4 11 21 Non Regulated Act. 27 32 29 39 127 International Activities 1 1 2 3 7 EBITDA 403 392 412 397 1,604 D&A 130 131 129 137 527 EBIT 273 261 283 260 1,077 Net Financial Charges 21 19 29 21 89 Pre Tax Profit 252 242 254 240 988 Taxes 74 70 78 72 294 Tax Rate (%) 29.2% 29.0% 30.6% 30.2% 29.8% Total Net Income 179 172 177 167 694 Minority Interest -1 0 -1 8 6 Group Net Income 179 172 178 159 688 2017 Restated P&L Quarterly Figures1 Annex 1. Unaudited Managerial Accounting 2. Including Quality of Service 3. Construction margin, including IFRIC 12 2 2 3
  19. 19. 19 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 € mn PP&E Intangible Asset Financial Inv. and Other Total Fixed Assets Net WC Funds Net Capital Invested Financed by: Consolidated Net Debt Total Shareholder's Equity Total D/E Ratio D/D+E Ratio Number of Shares (mn) Consolidated Balance Sheet Annex Δmn 157 -8 64 213 -217 38 33 -205 238 33 Dec. 31,2017 12,753 506 208 13,466 -1,485 -356 11,625 7,796 3,829 11,625 2.0 0.7 2,010 Sep. 30,2018 12,910 497 272 13,679 -1,703 -318 11,658 7,592 4,067 11,658 1.9 0.7 2,010
  20. 20. 20 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 1. Net of assets’ disposal 2. Including Other Fixed Assets Changes 3. Including Cash Flow Hedge accruals and other Consolidated Cash Flow Annex 9M18 545 397 -38 904 169 1,073 -561 512 -307 205 € mn Total Net Income D&A Net Change in Funds Operating Cash Flow Δ Working Capital & Other Cash Flow from Operating Activities Capital Expenditures Free Cash Flow to Equity Dividends & Equity Change in Net Cash (Debt) 1 2 3
  21. 21. 21 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 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 “AGOSTINO SCORNAJENCHI” 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. Disclaimer
  22. 22. 22 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 Notes
  23. 23. 23 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 Notes
  24. 24. 24 9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018 investor.relations@terna.it I +39 06 8313 8282 I www.terna.it

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