3. 9M13 CONSOLIDATED RESULTS
NOVEMBER 13th 2013
Strategic Update
Traditional Activities
Traditional Capex
Regulator confirmed the extra remuneration on 2011 and 2012 Work in Progress1
Milestones met
Incentives recognized starting from 2014 tariff
Storage
3 Sites fully authorized
2 Energy Intensive, 1 Power Intensive
Entered into the construction phase
In 9M13 spent already 31mn€
1. Resolution 469/2013 (only I3 Category). Regulator still to complete the assessment
Investor Relations
3
4. 9M13 CONSOLIDATED RESULTS
NOVEMBER 13th 2013
Strategic Update
Non Traditional Activities
Working hard to convert the Potential into a Pipeline, to guarantee a steady
contribution from NTAs during the Plan period
Tangible steps forward on renewable projects abroad
Investor Relations
4
5. NOVEMBER 13th 2013
9M13 CONSOLIDATED RESULTS
9M13 Results
At a Glance
OPERATING
PERFORMANCE
CAPEX & NET DEBT
NET INCOME
Total Revenues
Total Group Capex
Group Net Income
+7.9%
758
+15.8%
yoy
€mn
at 1,401€mn
at 412€mn
Net Debt
EBITDA
+10.1%
yoy
yoy
6,340
€mn
at 1,133€mn
EBITDA Margin
80.8%
+1.6pp yoy
Investor Relations
5
6. NOVEMBER 13th 2013
9M13 CONSOLIDATED RESULTS
9M13 Results
Consolidated Revenues
Total Revenues
Grid Fee
+7.9%
+9.4%
yoy
at 1,401€mn
58€mn
Revenues Evolution
+103
36
117
at
yoy
at 1,242€mn
Revenues Breakdown
1,299
Other Activities
11
1,401
44
102
11
13
107
-15
1,401
1,299
1,135
9M12
Grid Fee
Non Traditional Activities
1,242
9M13
Other Energy Items
Other Revenues
9M12
Grid Fee
Other Energy
Items
Other
Activities
9M13
In € mn
Investor Relations
6
7. NOVEMBER 13th 2013
9M13 CONSOLIDATED RESULTS
9M13 Results
Consolidated Costs & EBITDA
Total Operating Costs
Stable
yoy
EBITDA
= +10.1%
at 269€mn
EBITDA Margin
80.8%
yoy
at 1,133€mn
Costs Breakdown
+1.6pp yoy
Costs Evolution
Stable
270
28
269
31
95
94
3
-2
-2
270
146
144
9M12
9M13
265.9
Salaries
Services
Other
9M12
Salaries
Services
269
Other
9M13
In € mn
Investor Relations
7
8. NOVEMBER 13th 2013
9M13 CONSOLIDATED RESULTS
9M13 Results
From EBIT to Net Income
EBIT
€ mn
Δ
Δ%
EBITDA
1,029
1,133
104
10.1%
311
322
11
3.6%
EBIT
at 811€mn
9M13
D&A
+12.9% yoy
9M12
718
811
93
12.9%
NetFinancial Income & Equity inv.
- Financial Expenses
PBT
72
71
646
71
0
740
-1
-71
94
-1.5%
14.5%
45.0%1
44.4%2
Profit Before Taxes
+14.5% yoy
at 740€mn
Group Net Income
Tax Rate
+15.8% yoy
Taxes
291
328
38
12.9%
at 412€mn
Group Net Income
356
412
56
15.8%
1.
2.
At 45.2% excluding the recovery of past years taxes
At 45% excluding the recovery of past years taxes
Investor Relations
8
9. NOVEMBER 13th 2013
9M13 CONSOLIDATED RESULTS
9M13 Results
Capex Breakdown
Storage Business
Total Regulated Capex
Construction Phase
726€mn
Total Regulated Capex
Capex Breakdown €mn
Category
Δ
Δ % yoy
-37
-9%
203
217
13
7%
601
577
-24
-4%
Base Return
135
149
14
10%
Total Regulated Capex
736
726
-10
-1%
42
32
-10
Total Group Capex
+1.5%
360
Other 1
Base Return
398
Incentivized Capex
30%
9M13
+1.5%
726
50%
€mn
9M12
+2%
20%
778
758
-20
yoy
-3%
+2%
NOTE: Figures in accordance with resolution AEEG 40/2013
1. Capitalized Financial Charges + Non Traditional Capex
Investor Relations
9
10. NOVEMBER 13th 2013
9M13 CONSOLIDATED RESULTS
9M13 Results
Net Debt Evolution & Financial Structure
Fixed/Floating Ratio
6,340
€mn
Avg. Maturity
71/29
Net Debt
7 years
+485€mn vs. Dec. 31, 2012
Net Debt Evolution €mn
Financial Indebtedness
Terna SpA Bonds
+485
EIB Loans
14%
Banks
161
16%
261
696
70%
758
6,340
5,917
5,855
Rating
M/L Term
2
Sovereign
+1 notch
Negative
Negative
Baa2
+1 notch
Negative
Negative
Operating
Cash
Flow
BBB+
+1 notch
Negative
Negative
BBB+
BBB
Moody's
Dec.31,
2012
Sovereign
Baa1
A-
5,159
Capex
Dividends
Δ WC
&
Other1
Sep. 30,
2013
Fitch
Outlook
Terna2
Terna
S&P
5,159
Delta
As of November, 13 2013
1. Including Other Fixed Assets Changes, Change in Capital & Other
2. Government Related Entity
Investor Relations
10
11. NOVEMBER 13th 2013
9M13 CONSOLIDATED RESULTS
9M13 Results
Closing Remarks
2013 Outlook
Proceeding in line with the Strategic Plan
2013 Interim Dividend
7€cents
Ex Dividend Date:
November 18th 2013
Payment Date1:
November 21st 2013
1. Record Date: November 20th 2013
Investor Relations
11
12. 9M13 CONSOLIDATED RESULTS
NOVEMBER 13th 2013
THANK YOU.
QUESTIONS?
Flavio Cattaneo Chief Executive Officer
Giuseppe Saponaro Chief Financial Officer
9M13 Consolidated Results
NOVEMBER 13th, 2013
Investor Relations
12
14. NOVEMBER 13th 2013
9M13 CONSOLIDATED RESULTS
Annexes
Electricity Market Trends
9M13 Energy Demand
9M12 9M13
-3.7% yoy
Demand TWh
248
239
Δ%
-3.7%
YtD
Jan/Oct 2012 Jan/Oct 2013 Δ %
Demand TWh
275
265
-3.6%
-3.7% 12 months rolling
TWh
32
Range last 5 years
12 Months Rolling
Yr -1
30
28
26
24
Nov
Nov
YoY Chg%
Dec
Dec
Jan
Jan
Feb
Feb
Mar
Mar
Apr
Apr
May
May
Jun
Jun
Jul
Jul
Aug
Aug
Sep
Sep
Oct
Oct
-5.3%
-3.5%
-1.5%
-7.3%
-1.4%
-1.6%
-3.0%
-6.6%
-3.5%
-5.7%
-2.6%
-2.8%
2012 final figures, 2013 provisional figures (as of October 2013)
Investor Relations
14
15. NOVEMBER 13th 2013
9M13 CONSOLIDATED RESULTS
Annexes
Overview on Storage
Power Intensive Line
Energy Intensive Line
• Scope: Safe management of the grid
• Scope: Solve Grid congestion / bottlenecks
• Total Capacity: 40 MW
• Technology: Li-Ion Lithium , Zebra
• Total Capacity: 35 MW
• Technology: NaS Sodium Sulfur
• Number Of Projects: 2
• Number Of Projects: 3
Project 1
• Authorized Capacity: ≈ 12 MW
• Status: Construction Phase
Project 2
• Authorized Capacity: ≈ 12 MW
• Status: Construction Phase
• Authorized Capacity: ≈ 8 MW
Project 3
• Status: Building Authorization Phase
Ready to Built
Investor Relations
15
16. NOVEMBER 13th 2013
9M13 CONSOLIDATED RESULTS
Annexes
Consolidated Income Statement
€ mn
9M12
Operating Revenues
Δmn
9M13
Δ%
D&A
EBIT
Net Financial Charges
Pre Tax Profit
Taxes
1,242
102
58
107
-15
11
9.4%
-12.6%
22.3%
270
269
-1
-0.4%
144
94
31
-2
-2
3
-1.3%
-2.0%
9.3%
1,133
104
10.1%
322
11
3.6%
811
93
12.9%
72
71
-1
-1.5%
646
740
94
14.5%
38
12.9%
56
15.8%
291
Tax Rate (%)
Group Net Income
1.
2.
3.
1,135
117
47
718
EBITDA
7.9%
311
of which
Salaries
Services
Other
103
1,029
Operating Expenses
1,401
146
95
28
of which
Grid Fee
Other Energy Items
Other Activities 1
1,299
Other Revenues + Non Traditional Revenues
At 45.2% excluding the recovery of past years taxes
At 45% excluding the recovery of past years taxes
328
2
45.0%
44.4%
356
412
3
Investor Relations
16
17. NOVEMBER 13th 2013
9M13 CONSOLIDATED RESULTS
Annexes
Consolidated Balance Sheet
€ mn
Dec. 31,2012 Sep. 30,2013
Δmn
Assets
PP&E
Intangible Asset, net
Financial Inv. And Other
9,342
470
81
9,796
458
83
454
-12
2
9,894
10,337
443
-770
-480
-578
-443
192
37
8,643
9,315
672
Consolidated Net Debt
5,855
6,340
485
Total Shareholder's Equity
2,788
2,976
187
2.1
2.1
2,010
2,010
Total Fixed Assets
Net WC
Funds
Total Net Invested Capital
Financed by
D/E Ratio Continuing Operations
Number of Shares ('000)
Investor Relations
17
18. NOVEMBER 13th 2013
9M13 CONSOLIDATED RESULTS
Annexes
Consolidated Cash Flow
€ mn
9M12
9M13
356
308
-41
412
321
-37
622
696
-19
-192
603
504
-778
-758
17
-7
-158
-261
Dividends
Change in Capital and Other
-261
-34
-261
37
Change in Net Cash (Debt)
-453
-485
Net Income
Depreciation 1
Net Change in Funds
Operating Cash Flow
Change in Working Capital
Cash Flow from Operating Activities
Capital Expenditures
Other Fixed Asset Changes
Free Cash Flow
1. Net of assets’ disposal
Investor Relations
18
20. 9M13 CONSOLIDATED RESULTS
NOVEMBER 13th 2013
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 FORWARDLOOKING 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 “LUCIANO DI BACCO” 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.
Investor Relations
20
