Terna presented its consolidated results for the first half of 2020. Key highlights included revenues increasing 7.8% to €1,183 million driven by regulated investments and the Brugg Cables consolidation. EBITDA grew 3.5% to €876 million. Capex increased 8% to €428 million to support ongoing investments. Group net income increased 3% to €378 million. Terna maintained a solid financial position with net debt of €8,846 million and is well positioned to meet its targets.
This document contains certain forward-looking information that is subject to a number of factors that may influence the accuracy of the statements and the projections upon which the statements are based. There can be non assurance that the projections or forecasts will ultimately
prove to be accurate; accordingly, the Company makes no representation or warranty as to the accuracy of such information or the likelihood that the Company will perform as projected.
San Donato Milanese, 30 July 2014 – The Snam Board of Directors, at yesterday’s meeting chaired by Lorenzo Bini Smaghi, approved the consolidated half-year report to 30 June 2014 (subjected to a limited audit) and examined the consolidated results for the second quarter of 2014 (unaudited).
Financial highlights
Total revenue: €1,782 million (+0.4%)
EBIT: €1,044 million (+2.4%)
Net profit: €561 million (+21.4%)
Technical investments: €526 million (+7.3%)
Operating highlights
Gas injected into the transportation network: 32.78 billion cubic metres (-5.0%)
Number of active meters: 5.911 million (5.915 million at 30 June 2013)
Available storage capacity: 11.4 billion cubic metres (unchanged compared with 30 June 2013)
Carlo Malacarne, Snam CEO, made the following comments on the results:
“In the first half of 2014 the EBIT growth of 2.4%, as well as the remarkable increase in net income of more than 21%, is the result of our continued focus on operating efficiency as well as the increasing contribution of associates and the on-going optimization measures in the cost of debt.
We remain committed to investing for profitable growth and value creation for our shareholders, confirming our selective capex plan”.
This document contains certain forward-looking information that is subject to a number of factors that may influence the accuracy of the statements and the projections upon which the statements are based. There can be non assurance that the projections or forecasts will ultimately
prove to be accurate; accordingly, the Company makes no representation or warranty as to the accuracy of such information or the likelihood that the Company will perform as projected.
San Donato Milanese, 30 July 2014 – The Snam Board of Directors, at yesterday’s meeting chaired by Lorenzo Bini Smaghi, approved the consolidated half-year report to 30 June 2014 (subjected to a limited audit) and examined the consolidated results for the second quarter of 2014 (unaudited).
Financial highlights
Total revenue: €1,782 million (+0.4%)
EBIT: €1,044 million (+2.4%)
Net profit: €561 million (+21.4%)
Technical investments: €526 million (+7.3%)
Operating highlights
Gas injected into the transportation network: 32.78 billion cubic metres (-5.0%)
Number of active meters: 5.911 million (5.915 million at 30 June 2013)
Available storage capacity: 11.4 billion cubic metres (unchanged compared with 30 June 2013)
Carlo Malacarne, Snam CEO, made the following comments on the results:
“In the first half of 2014 the EBIT growth of 2.4%, as well as the remarkable increase in net income of more than 21%, is the result of our continued focus on operating efficiency as well as the increasing contribution of associates and the on-going optimization measures in the cost of debt.
We remain committed to investing for profitable growth and value creation for our shareholders, confirming our selective capex plan”.
CHILD FOUNDATION FINANCIAL STATEMENTS YeJinElias52
CHILD FOUNDATION
FINANCIAL STATEMENTS
Year Ended May 31, 2020
with
Independent Auditors’ Report
CHILD FOUNDATION
Table of Contents
Page
Independent Auditors’ Report 1
Financial Statements
Statement of Financial Position 3
Statement of Activities 4
Statement of Functional Expenses 5
Statement of Cash Flows 6
Notes to Financial Statements 7
- 1 -
Independent Auditors’ Report
The Board of Directors
Child Foundation
Report on the Financial Statements
We have audited the accompanying financial statements of Child Foundation (the Organization), which
comprise the statement of financial position as of May 31, 2020, and the related statements of activities,
functional expenses, and cash flows for the year then ended, and the related notes to the financial
statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
- 2 -
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Child Foundation as of May 31, 202 ...
4. 4
1H20 CONSOLIDATED RESULTS JULY 29th 2020
Main achievements of the period
DOMESTIC REGULATED ACTIVITIES
Highlights (1/3)
Focus on execution
NON REGULATED ACTIVITIES
INTERNATIONAL ACTIVITIES SHAREHOLDERS REMUNERATION
Well on track on construction activities
and authorization procedures
Brugg Cables consolidation
16.53 €cents/share paid in June as
final 2019 dividend
Brazil and Uruguay projects in operation
ongoing as expected
5. 5
1H20 CONSOLIDATED RESULTS JULY 29th 2020
31.2
26.4
26.6 26.3 25.8 25.6
27.5
25.8
23.7
19.9
22.7
24.0
18
20
22
24
26
28
30
32
34
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Monthly energy demand
Previous Year
Demand Evolution – Last 12 months
DEMAND AS REPORTED (TWh)
Highlights (2/3)
Note: 2018 final figures, 2019 and 2020 preliminary figures
Ensuring security of supply even in a challenging scenario
1H2020 data:
▪ National Demand at 144 TWh, o/w 40.5% covered by RES
▪ Net Total Production at 131 TWh
1H2020
Δ %
-8.9%
1H20 1H19
143.5 157.6
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
3.5% 0.4% -1.1% -0.9% -1.1% -3.0% -4.0% 0.7% -10.2% -17.2% -10.3% -13.4%
YoY
Change
6. 6
1H20 CONSOLIDATED RESULTS JULY 29th 2020
Resilient business model. Well on track to meet all targets
1H 2020 Key Numbers
1. Attributable to Terna
1H 2019€mn
Revenues
EBITDA
Group Net Income1
Capex
Δ vs 1H191H 2020
1,183 1,098
876 846
378 367
428 396
Highlights (3/3)
+8%
+4%
+3%
+8%
8,846 8,259Net Debt
FY 20191H 2020
8. 8
1H20 CONSOLIDATED RESULTS JULY 29th 2020
1,005 1,025
82
14611
121,098
20
63
2 1,183
1H19 ∆
Regulated
Activities
∆
Non Regulated
Activities
∆
International
Activities
1H20
Revenues
Note: figures may not add up due to rounding
1. Including IFRIC12
2. Construction margin, including IFRIC12
Insourcing attività di O&M Rete FSRegulated investments and Brugg consolidation as a growth driver
1 2
€mn
Regulated Activities1
Non Regulated Act.
International Act.2
1H 2020 results
+85
+7.8%
9. 9
1H20 CONSOLIDATED RESULTS JULY 29th 2020
82
146
11
12
93
63 2 158
1H19 ∆
Non Regulated
Activities
∆
International
Activities
1H20
984 993
16
8 9 3
24
5 8
1,005 1,025
1H19 ∆
Transmission &
Dispatching
∆
Other
∆
IFRIC12
1H20
Revenues Analysis
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+20
+2.0% +65
+69.8%
High quality of service ensured
Transmission & Dispatching
Other
IFRIC12
Note: figures may not add up due to rounding
1H 2020 results
Non Regulated Act.
International Act.
10. 10
1H20 CONSOLIDATED RESULTS JULY 29th 2020
190 197
56
1065
5
6
50 -1
252
307
1H19 ∆
Regulated
Activities
∆
Non Regulated
Activities
∆
International
Activities
1H20
1
+56
+22.1%
€mn
Opex
Note: figures may not add up due to rounding
1. Including IFRIC12
Insourcing attività di O&M Rete FS
Operating costs evolution reflecting perimeter change
Regulated Activities1
Non Regulated Act.
International Act.
1H 2020 results
11. 11
1H20 CONSOLIDATED RESULTS JULY 29th 2020
56
1065
50 -1
5
61
111
1Q19 ∆
Non Regulated
Activities
∆
International
Activities
1H20
110 115
69
5 -3 1 3
66
7 75 8
190
197
1H19 ∆
Labour
Costs
∆
External
Costs
∆
Other
∆
IFRIC12
1H20
Opex Analysis
Insourcing attività di O&M Rete FSCosts dynamics under control
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+6
+3.3%
+49
+80.4%
Note: figures may not add up due to rounding
Non Regulated Act.
International Act.
1H 2020 results
External Costs
Labour Costs
IFRIC12
Other
1H19 1H20
12. 12
1H20 CONSOLIDATED RESULTS JULY 29th 2020
846 876
1H19 1H20
815 829
14
1H19 ∆ 1H20
EBITDA
Insourcing attività di O&M Rete FS
Investments acceleration driving EBITDA growth
€mn
TOTAL EBITDA
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+30
+3.5%
Note: figures may not add up due to rounding
1H 2020 results
32
47
16
1H19 ∆ 1H20
13. 13
1H20 CONSOLIDATED RESULTS JULY 29th 2020
876
574
378 367
302
39
155
EBITDA D&A EBIT Net
Financial
Expenses
Taxes Group
Net Income
Group
Net Income
1H19
From EBITDA to Net Income
Note: figures may not add up due to rounding
1. Attributable to Terna. Excluding Minorities
+3% Group Net Income growth
1
€mn
1
1H 2020 results
+3% YoY
14. 14
1H20 CONSOLIDATED RESULTS JULY 29th 2020
401
35%
17%
48%
Development
Defence
Asset Renewal & Efficiency
343 401
54
27
396
428
1H19 1H20
Regulated Non Regulated and Other
Capex
Insourcing attività di O&M Rete FSOngoing Capex acceleration
TOTAL CAPEX
€mn
1
REGULATED CAPEX
Note: figures may not add up due to rounding
1. Of which about 4 €mn of Capitalized Financial Charges in 1H20 and 6 €mn in 1H19
401
€mn
1H 2020 results
Development
Defence
Asset Renewal & Efficiency
15. 15
1H20 CONSOLIDATED RESULTS JULY 29th 2020
8,259
8,846
631 387
428
404
Dec.31,
2019
Operating
Cash Flow
Δ WC & Other Capex Dividends
&
Equity
Jun.30,
2020
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 generation to support capex plan
€mn
2
+588
1
1H 2020 results
16. 16
1H20 CONSOLIDATED RESULTS JULY 29th 2020
Net Debt Evolution & Financial Structure
1. Percentages and key ratios calculated on Gross Debt nominal value
2. IAS value
Maintaining a solid financial structure
GROSS DEBT BREAKDOWN KEY RATIOS
1 1
Fixed/Floating Ratio
Calculated on Gross Debt
82% Fixed
Duration
4.5 years
10.6€bn2
1H 2020 results
74%
17%
9%
Terna SpA Bonds
EIB
Banks
18. 18
1H20 CONSOLIDATED RESULTS JULY 29th 2020
Closing Remarks
Focus on Domestic Regulated Activities
Enhance the central role of the TSO in the Energy Transition
Maintain a low risk profile
Preserve our solid financial structure
20. 20
1H20 CONSOLIDATED RESULTS JULY 29th 2020
€ mn 1H20 1H19 Δmn Δ%
Total Revenue 1,183 1,098 85 7.8%
Regulated Activities 1,025 1,005 20 2.0%
Transmission 939 929 10 1.1%
Dispatching 54 56 -2 -3.6%
Other 24 16 9 56.1%
IFRIC12 8 5 3 66.0%
Non Regulated Activities 146 82 63 77.1%
International Activities 12 11 2 13.9%
Total Costs 307 252 56 22.1%
Regulated Activities 197 190 6 3.3%
Labour Costs 115 110 5 4.2%
External Costs 66 69 -3 -3.8%
Other 7 7 1 13.9%
IFRIC12 8 5 3 66.0%
Non Regulated Activities 106 56 50 89.1%
International Activities 5 5 -1 -11.3%
EBITDA 876 846 30 3.5%
D&A 302 289 14 4.7%
EBIT 574 558 16 2.9%
Net Financial Charges 39 39 0 0.8%
Pre Tax Profit 535 519 16 3.1%
Taxes 155 150 5 3.1%
Tax Rate (%) 29.0% 29.0% -0.0 pp
Total Net Income 380 368 11 3.0%
Minority Interest 2 2 0 16.7%
Group Net Income 378 367 11 3.0%
1. Managerial Accounting
2. Including Quality of Service
Consolidated Income Statement1
Annex
2
2
21. 21
1H20 CONSOLIDATED RESULTS JULY 29th 2020
Consolidated Balance Sheet
Annex
€ 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)
Jun. 30,2020 Dic. 31,2019 Δmn
14,003 13,864 139
542 543 -1
474 502 -28
15,018 14,908 110
-1,802 -2,208 406
-162 -210 48
13,054 12,490 564
8,846 8,259 588
4,208 4,232 -24
13,054 12,490 564
2.1 2.0
0.7 0.7
Mar. 31,2020 Dic. 31,2019 Δmn
13,922 13,864 58
541 543 -1
473 502 -28
14,937 14,908 28
-1,979 -2,208 229
-178 -210 32
12,780 12,490 289
8,409 8,259 150
4,371 4,232 139
12,780 12,490 289
1.9 2.0
0.7 0.7
2,010 2,010
22. 22
1H20 CONSOLIDATED RESULTS JULY 29th 2020
€ mn 1H20 1H19
Total Net Income 380 368
D&A 299 287
Net Change in Funds -48 -70
Operating Cash Flow 631 586
Δ Working Capital & Other -387 -162
Cash Flow from Operating Activities 244 424
Capital Expenditures -428 -396
Free Cash Flow to Equity -184 28
Dividends & Equity -404 -422
Change in Net Cash (Debt) -588 -394
1. Net of assets’ disposal
2. Including Other Fixed Assets Changes
3. Including Cash Flow Hedge accruals and other
Consolidated Cash Flow
Annex
1
2
3
23. 23
1H20 CONSOLIDATED RESULTS JULY 29th 2020
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
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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
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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
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