4. 4
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
Latest main achievements
Highlights
Focus on Plan execution and ESG commitment
▪ Conclusion of the first consultation
phase for the Tyrrhenian Link and
beginning of the second one
▪ Conclusion of the first consultation
phase for the Adriatic Link
▪ Agreement signed with European
Investment Bank for a loan of € 300
million for the energy transition
▪ Revision of Terna’s Outlook from
stable to positive by S&P rating
agency
▪ Confirmation in the Stoxx Global ESG
Leaders Index
▪ Inclusion in the MIB 40 ESG index
ESG commitment
Financial
Structure
▪ LT Acquisition
Non Regulated
Activities
Regulated
Activities
5. 5
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
26.2
25.5 25.9
27.1
24.8
26.7
24.3 24.5
27.4
30.3
26.8 27.0
18
20
22
24
26
28
30
32
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Monthly energy demand
Previous Year
DEMAND AS REPORTED (TWh)
Note: 2019 final figures, 2020 and 2021 preliminary figures
Electricity demand higher than pre-Covid levels
▪ National Demand at 239 TWh, o/w ~37% covered by RES
▪ Net Total Production at 207 TWh, o/w ~43% covered by RES
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
YoY Chg% -0.8% -1.5% 1.1% -1.0% -3.4% 11.8% 21.7% 8.5% 13.8% 4.9% 2.7% 1.9%
Δ %
6.2%
9M21 9M20
239.0 225.1
Highlights
Demand Evolution – Last 12 months
9M 2021
6. 6
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
9M 2021 Key Numbers
Well on track to meet 2021 targets
Revenues +7%
EBITDA +4%
Group Net
Income1
+2%
Capex +23%
Net Debt 9,573
1,902
1,374
580
925
9,173
1,781
1,323
569
749
9M 2021 ∆ vs 9M2020
1. Attributable to Terna
2. 2020 figures reported into Interim Financial Report 9M2020, excluding the restatement under IFRS 3
9M 2020
9M 2021 FY 2020
2
Highlights
8. 8
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
1,545 1,644
218
246
18
12
1,781
99 28 -6
1.902
9M20 ∆
Regulated
Activities
∆
Non Regulated
Activities
∆
International
Activities
9M21
Note: figures may not add up due to rounding
1. Including IFRIC12
2. Construction margin, including IFRIC12
Revenues increase driven both by Regulated and Non Regulated Activities
1 2
€mn
Regulated Activities1
Non Regulated Act.
International Act.2
+121
+6.8%
,
Revenues
9M 2021 results
9. 9
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
218 246
18
12
236
28 -6 258
9M20 ∆
Non Regulated
Activities
∆
International
Activities
9M21
1,499 1,585
33
86 -1 13
32
14 27
1,545 1,644
9M20 ∆
Transmission & Dispatching
∆
Other
∆
IFRIC12
9M21
Higher contribution from Regulated activities
Note: figures may not add up due to rounding
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+99
+6.4%
+23
+9.6%
Transmission & Dispatching
Other
IFRIC12
Non Regulated Act.
International Act.
9M 2021 results
Revenues Analysis
10. 10
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
284 316
166
204
7
8
32
38 1
457
528
9M20 ∆
Regulated
Activities
∆
Non Regulated
Activities
∆
International
Activities
9M21
Note: figures may not add up due to rounding
1. Including IFRIC12
Operating costs evolution driven by higher volume of activity
1
€mn
Regulated Activities1
Non Regulated Act.
International Act.
+70
+15.4%
9M 2021 results
Opex
11. 11
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
1,261 1,327
67
9M20 ∆ 9M21
1,323 1,374
9M20 9M21
EBITDA growth driven by Regulated Activities
Note: figures may not add up due to rounding
€mn
GROUP
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+51
+3.8%
9M 2021 results
EBITDA
63
46
-16
9M20 ∆ 9M21
12. 12
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
1,374
883
580 569
491
68
232
EBITDA D&A EBIT Net
Financial
Expenses
Taxes Group
Net Income
Group
Net Income
9M20
Note: figures may not add up due to rounding
1. Attributable to Terna. Excluding Minorities
1
€mn
+2% YoY
1
9M21
9M 2021 results
From EBITDA to Net Income
Solid results delivered
13. 13
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
705
882
45
43
749
925
9M20 9M21
Regulated Non Regulated and Other
Maximizing effort to support the decarbonization path
TOTAL CAPEX
€mn
1
REGULATED CAPEX
€mn
Note: figures may not add up due to rounding
1. Of which about 8 €mn of Capitalized Financial Charges in 2021 and 6 €mn in 2020
9M 2021 results
Capex
37%
18%
45%
Development
Defence
Asset Renewal & Efficiency
882
Development
Defence
Asset Renewal & Efficiency
14. 14
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
Note: figures may not add up due to rounding
1. Including Other Fixed Assets Changes
2. Including Cash Flow Hedge reserve and other
Strong operating cash flow to cover investment needs
€mn
2
+401
1
9M 2021 results
Cash Flow & Net Debt Evolution
9,173
9,573
1,020
161
925
334
Dec.31,
2020
Operating
Cash Flow
Δ WC & Other Capex Dividends
&
Equity
Sep.30,
2021
15. 15
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
66%
16%
18%
Terna SpA Bonds
EIB
Banks
1. Percentages and key ratios calculated on Gross Debt nominal value
2. IAS value
Ensuring financial stability
GROSS DEBT BREAKDOWN KEY RATIOS
1 1
~ 90% Fixed
~ 5 years
12.2€bn
2
9M 2021 results
Net Debt Evolution & Financial Structure
Terna SpA Bonds
EIB
Banks
Calculated on Gross Debt
Fixed/Floating Ratio
Maturity
18. 18
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
€ mn 9M21 9M20 Δmn Δ%
Total Revenue 1,902 1,781 121 6.8%
Regulated Activities 1,644 1,545 99 6.4%
Transmission 1,499 1,417 83 5.9%
Dispatching 85 82 3 3.8%
Other 32 33 -1 -2.4%
IFRIC12 27 14 13 96.4%
Non Regulated Activities 246 218 28 13.0%
International Activities 12 18 -6 -33.0%
Total Costs 528 457 70 15.4%
Regulated Activities 316 284 32 11.2%
Labour Costs 169 162 6 3.8%
External Costs 104 97 7 6.7%
Other 17 11 6 51.8%
IFRIC12 27 14 13 96.4%
Non Regulated Activities 204 166 38 22.8%
International Activities 8 7 1 12.2%
EBITDA 1,374 1,323 51 3.8%
D&A 491 458 33 7.2%
EBIT 883 865 17 2.0%
Net Financial Charges 68 70 -2 -2.8%
Pre Tax Profit 814 795 19 2.4%
Taxes 232 223 9 4.0%
Tax Rate (%) 28.5% 28.0% - +0.5 pp
Total Net Income 582 572 10 1.8%
Minority Interest 2 3 -1 -29.6%
Group Net Income 580 569 11 2.0%
Note: figures may not add up due to rounding
1. Managerial Accounting
2. Including Quality of Service
2
2
Annex
Consolidated Income Statement1
19. 19
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
€ mn
€ mn Sep. 30,2021 Dic. 31,2020 Δmn
PP&E 14,936 14,560 376
Intangible Asset 600 578 22
Financial Inv. and Other 540 508 32
Total Fixed Assets 16,076 15,646 430
Net WC -1,760 -1,936 176
Funds -78 -121 43
Net Capital Invested 14,237 13,588 649
Financed by:
Consolidated Net Debt 9,573 9,173 401
Total Shareholder's Equity 4,664 4,416 248
Total 14,237 13,588 649
Annex
Consolidated Balance Sheet
20. 20
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
€ mn 9M21 9M20
Total Net Income 582 572
D&A 481 455
Net Change in Funds -43 -70
Operating Cash Flow 1,020 957
Δ Working Capital & Other -161 -347
Cash Flow from Operating Activities 859 610
Capital Expenditures -925 -750
Free Cash Flow to Equity -67 -139
Dividends & Equity -334 -427
Change in Net Cash (Debt) -401 -566
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
Annex
Consolidated Cash Flow
22. 22
9M2021 CONSOLIDATED RESULTS NOVEMBER 10th 2021
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