4. 4
1H21 CONSOLIDATED RESULTS JULY 29th 2021
28.9 26.0
26.5 26.2
25.5 25.9
27.1
24.8
26.7
24.3 24.5
27.4
18
20
22
24
26
28
30
32
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Monthly energy demand
Previous Year
Jul Ago Sep Oct Nov Dec Jan Feb Mar Apr May Jun
YoY Chg% -6.6% -0.3% 0.0% -0.8% -1.5% 1.1% -1.0% -3.4% 11.8% 21.7% 8.5% 13.8%
Demand Evolution – Last 12 months
DEMAND AS REPORTED (TWh)
Highlights
Note: 2019 and 2020 final figures, 2021 preliminary figures
Electricity demand recovery confirmed in 1H21
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
1H 2021
Δ %
7.8%
1H21 1H20
154.9 143.6
5. 5
1H21 CONSOLIDATED RESULTS JULY 29th 2021
Ten-year Development Plan 2021: Grid Investments
Highlights
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*
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
Source: Terna 2021 Ten-year Development Plan https://www.terna.it/en/electric-system/grid/national-electricity-transmission-grid-development-plan
*Integrated National Energy and Climate Plan 2030 targets
Over 18 €bn: the highest investment plan ever
6. 6
1H21 CONSOLIDATED RESULTS JULY 29th 2021
+8 GW
exchange capacity between market zones
+6 GW
foreign interconnections
4,600 km
obsolete lines removed
Highlights
Benefits
for the
system
Source: Terna 2021 Ten-year Development Plan https://www.terna.it/en/electric-system/grid/national-electricity-transmission-grid-development-plan
Ten-year Development Plan 2021: Benefits for the System
Supporting the gradual closure
of plants with higher emissions
*In line with the current national target (Integrated National Energy and Climate Plan 2030 targets)
Grid investments as a key tool for the energy transition, the security of supply
and the reduction of costs for final users
-5.6 mn
tonnes of CO2 per year
Increasing grid resiliency
+40GW
new renewable capacity*
-70%
energy not supplied
7. 7
1H21 CONSOLIDATED RESULTS JULY 29th 2021
1H 2021 Key Numbers
Highlights
Strong capex increase to serve system needs
Revenues +6%
EBITDA +4%
Group Net
Income1
+2%
Capex +41%
Net Debt 9,735
1,259
910
385
602
9,173
1,183
876
378
428
1H 2021 ∆ vs 1H2020
1. Attributable to Terna
2. 2020 figures reported into Interim Financial Report 1H2020, excluding the restatement under IFRS 3
1H 2020
1H 2021 FY 2020
2
9. 9
1H21 CONSOLIDATED RESULTS JULY 29th 2021
1,025 1,093
146
163
12
3
1,183
68 17 -10
1.259
1H20 ∆
Regulated
Activities
∆
Non Regulated
Activities
∆
International
Activities
1H21
Revenues
Note: figures may not add up due to rounding
1. Including IFRIC12
2. Construction margin, including IFRIC12
Insourcing attività di O&M Rete FS
Revenues increase driven by Regulated and Non Regulated
1H 2021 results
1 2
€mn
Regulated Activities1
Non Regulated Act.
International Act.2
+76
+6.4%
,
10. 10
1H21 CONSOLIDATED RESULTS JULY 29th 2021
146 163
12 3
158
17 -10 165
1H20 ∆
Non Regulated
Activities
∆
International
Activities
1H21
993 1,054
24
61 0 7
25
8
15
1,025 1,093
1H20 ∆
Transmission & Dispatching
∆
Other
∆
IFRIC12
1H21
Revenues Analysis
Regulated investments as a growth driver
Note: figures may not add up due to rounding
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+68
+6.7%
+7
+4.7%
Transmission & Dispatching
Other
IFRIC12
Non Regulated Act.
International Act.
1H 2021 results
11. 11
1H21 CONSOLIDATED RESULTS JULY 29th 2021
197 212
106
131
5
5
15
25
1
307
348
1H20 ∆
Regulated
Activities
∆
Non Regulated
Activities
∆
International
Activities
1H21
Opex
Note: figures may not add up due to rounding
1. Including IFRIC12
Insourcing attività di O&M Rete FS
Operating costs evolution driven mainly by business acceleration
1
€mn
Regulated Activities1
Non Regulated Act.
International Act.
+41
+13.4%
1H 2021 results
12. 12
1H21 CONSOLIDATED RESULTS JULY 29th 2021
47
29
-19
1H20 ∆ 1H21
876 910
1H20 1H21
EBITDA
Insourcing attività di O&M Rete FS
4% EBITDA growth
Note: figures may not add up due to rounding
€mn
GROUP
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+34
+3.9%
1H 2021 results
829 882
53
1H20 ∆ 1H21
13. 13
1H21 CONSOLIDATED RESULTS JULY 29th 2021
1H21
910
585
385 378
326
41
158
EBITDA D&A EBIT Net
Financial
Expenses
Taxes Group
Net Income
Group
Net Income
1H20
From EBITDA to Net Income
Note: figures may not add up due to rounding
1. Attributable to Terna. Excluding Minorities
Well on track to reach 2021 guidance
1
€mn
+2% YoY
1H 2021 results
1
14. 14
1H21 CONSOLIDATED RESULTS JULY 29th 2021
401
571
27
31
428
602
1H20 1H21
Regulated Non Regulated and Other
Capex
Insourcing attività di O&M Rete FS
Over 40% capex acceleration
TOTAL CAPEX
€mn
1
REGULATED CAPEX
€mn
1H 2021 results
Note: figures may not add up due to rounding
1. Of which about 5 €mn of Capitalized Financial Charges in 1H2021 and 4 €mn in 1H2020
38%
18%
44%
Development
Defence
Asset Renewal & Efficiency
571
Development
Defence
Asset Renewal & Efficiency
15. 15
1H21 CONSOLIDATED RESULTS JULY 29th 2021
9,173
9,735
672 306
602
326
Dec.31,
2020
Operating
Cash Flow
Δ WC & Other Capex Dividends
&
Equity
Jun.30,
2021
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
Operating cash flow supports investment activity
€mn
2
+562
1
1H 2021 results
16. 16
1H21 CONSOLIDATED RESULTS JULY 29th 2021
69%
18%
13%
Terna SpA Bonds
EIB
Banks
Net Debt Evolution & Financial Structure
1. Percentages and key ratios calculated on Gross Debt nominal value
2. IAS value
Maintaining a solid financial structure despite capex acceleration
GROSS DEBT BREAKDOWN KEY RATIOS
1 1
Fixed/Floating Ratio
Calculated on Gross Debt
89% Fixed
Maturity
~5 years
11.7€bn
2
1H 2021 results
18. 18
1H21 CONSOLIDATED RESULTS JULY 29th 2021
Closing Remarks
Electricity demand recovery ongoing
Maximizing the effort to support the decarbonization path
Guidance confirmed
Playing our role to relaunch the Italian economy
21. 21
1H21 CONSOLIDATED RESULTS JULY 29th 2021
€ 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%
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 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%
Consolidated Income Statement1
Annex
Note: figures may not add up due to rounding
1. Managerial Accounting
2. Including Quality of Service
2
2
22. 22
1H21 CONSOLIDATED RESULTS JULY 29th 2021
€ 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 Balance Sheet
Annex
€ mn
23. 23
1H21 CONSOLIDATED RESULTS JULY 29th 2021
€ mn 1H21 1H20
Total Net Income 386 380
D&A 317 299
Net Change in Funds -31 -48
Operating Cash Flow 672 631
Δ Working Capital & Other -306 -387
Cash Flow from Operating Activities 366 244
Capital Expenditures -602 -428
Free Cash Flow to Equity -236 -184
Dividends & Equity -326 -404
Change in Net Cash (Debt) -562 -588
Consolidated Cash Flow
Annex
Note: 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 and other
1
2
3
25. 25
1H21 CONSOLIDATED RESULTS JULY 29th 2021
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