Terna - 1Q 2021 Consolidated Results

Terna - 1Q 2021 Consolidated Results

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  1 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 1Q2021 Consolidated Results May 12th 2021
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  2 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 Agenda 1Q21 Results 6 Highlights 3 Annexes 15
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  3 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 Highlights
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  4 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 20.0 22.6 24.1 28.9 26.0 26.5 26.2 25.5 25.9 27.1 24.8 26.7 18 20 22 24 26 28 30 32 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Monthly energy demand Previous Year Demand Evolution – Last 12 months DEMAND AS REPORTED (TWh) Highlights (1/2) Note: 2019 final figures, 2020 and 2021 preliminary figures March 2021 demand returned at pre-Covid levels 1Q 2021 data: ▪ National Demand at 79 TWh, o/w ~34% covered by RES ▪ Net Total Production at 67 TWh, o/w 40% covered by RES Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar YoY Chg% -17.5% -11.9% -13.4% -6.6% -0.3% 0.0% -0.8% -1.5% 1.1% -1.0% -3.4% 11.8% Δ % 2.2% 1Q21 1Q20 78.6 77.0 1Q 2021
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  5 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 1Q 2021 Key Numbers Highlights (2/2) P&L growth and robust capex acceleration Revenues +10% EBITDA +5% Group Net Income1 +2% Capex +11% Net Debt 9,321 622 454 190 242 9,173 567 434 187 218 1Q 2021 ∆ vs 1Q2020 1. Attributable to Terna 1Q 2020 1Q 2021 FY 2020 Note: 2020 figures exclude Brugg Cables contribution
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  6 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 1Q21 Results
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  7 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 517 537 44 79 1 7 6 567 622 20 35 -1 1Q20 ∆ Regulated Activities ∆ Non Regulated Activities ∆ International Activities 1Q21 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 1Q 2021 results 1 2 €mn Regulated Activities1 Non Regulated Act. International Act.2 +54 +9.6%
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  8 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 44 79 7 35 -1 6 51 85 1Q20 ∆ Non Regulated Activities ∆ International Activites 1Q21 502 526 10 24 -6 2 4 4 6 517 537 1Q20 ∆ Transmission & Dispatching ∆ Other ∆ IFRIC12 1Q21 Revenues Analysis Regulated investments and Brugg acquisition as growth drivers Note: figures may not add up due to rounding €mn REGULATED €mn NON REGULATED AND INTERNATIONAL +20 +3.9% +34 +67.2% Transmission & Dispatching Other IFRIC12 Non Regulated Act. International Act. 1Q 2021 results
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  9 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 98 104 33 62 2 2 5 29 1 133 168 1Q20 ∆ Regulated Activities ∆ Non Regulated Activities ∆ International Activities 1Q21 Opex Note: figures may not add up due to rounding 1. Including IFRIC12 Insourcing attività di O&M Rete FS Operating costs evolution driven by perimeter change 1 €mn Regulated Activities1 Non Regulated Act. International Act. +35 +26.2% 1Q 2021 results
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  10 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 16 21 5 1Q20 ∆ 1Q21 418 433 15 1Q20 ∆ 1Q21 434 454 1Q20 1Q21 EBITDA Insourcing attività di O&M Rete FS EBITDA growth mainly driven by Regulated Actvities Note: figures may not add up due to rounding €mn GROUP €mn REGULATED €mn NON REGULATED AND INTERNATIONAL +19 +4.5% 1Q 2021 results
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  11 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 454 291 190 187 163 22 78 EBITDA D&A EBIT Net Financial Expenses Taxes Group Net Income Group Net Income FY20 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 all targets 1 €mn +2% YoY 1Q 2021 results 1Q20 1 1Q21
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  12 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 37% 14% 49% Development Defence Asset Renewal & Efficiency 227 206 227 11 15 218 242 1Q20 1Q21 Regulated Non Regulated and Other Capex Insourcing attività di O&M Rete FS Double-digit capex acceleration to drive energy transition TOTAL CAPEX €mn 1 REGULATED CAPEX 227 €mn Development Defence Note: figures may not add up due to rounding 1. Of which about 2 €mn of Capitalized Financial Charges in both 2021 and 2020 Asset Renewal & Efficiency 1Q 2021 results
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  13 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 9,173 9,321 333 265 242 26 Dec.31, 2020 Operating Cash Flow Δ WC & Other Capex Dividends & Equity Mar.31, 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 generation covering investment needs €mn 2 +148 1 1Q 2021 results
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  14 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 64% 18% 18% Terna SpA Bonds EIB Banks 11.6 €bn 2 Net Debt Evolution & Financial Structure 1. Percentages and key ratios calculated on Gross Debt nominal value 2. IAS value Diversified and well-balanced financial structure GROSS DEBT BREAKDOWN KEY RATIOS 1 1 Fixed/Floating Ratio Calculated on Gross Debt 81% Fixed Maturity ~5 years 11.6€bn 2 1Q 2021 results
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  15 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 Annexes
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  16 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 € mn 1Q21 1Q20 Δmn Δ% Total Revenue 622 567 54 9.6% Regulated Activities 537 517 20 3.9% Transmission 498 475 23 4.9% Dispatching 27 27 0 0.2% Other 2 4 10 -6 -56.8% IFRIC12 6 4 2 54.8% Non Regulated Activities 79 44 35 79.5% International Activities 6 7 -1 -10.0% Total Costs 168 133 35 26.2% Regulated Activities 104 98 5 5.5% Labour Costs 56 57 0 -0.7% External Costs 35 34 1 3.3% Other 2 5 3 2 74.1% IFRIC12 6 4 2 54.8% Non Regulated Activities 62 33 29 87.0% International Activities 2 2 1 36.5% EBITDA 454 434 19 4.5% D&A 163 152 11 7.0% EBIT 291 282 9 3.1% Net Financial Charges 22 19 2 13.0% Pre Tax Profit 269 263 6 2.4% Taxes 78 76 2 2.5% Tax Rate (%) 29.1% 29.1% 0,0 pp Total Net Income 191 186 4 2.4% Minority Interest 0.3 -0.3 0.6 -200.0% Group Net Income 190 187 4 2.0% Consolidated Income Statement1 Annex Note: figures may not add up due to rounding 1. Managerial Accounting 2. Including Quality of Service -57.4%
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  17 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 € mn Mar. 31,2021 Dec. 31,2020 Δmn PP&E 14,634 14,560 74 Intangible Asset 577 578 -1 Financial Inv. and Other 503 508 -5 Total Fixed Assets 15,714 15,646 68 Net WC -1,654 -1,936 282 Funds -107 -121 15 Net Capital Invested 13,953 13,588 365 Financed by: Consolidated Net Debt 9,321 9,173 148 Total Shareholder's Equity 4,632 4,416 216 Total 13,953 13,588 365 Consolidated Balance Sheet Annex
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  18 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 € mn 1Q21 1Q20 Total Net Income 191 186 D&A 1 157 151 Net Change in Funds -15 -32 Operating Cash Flow 333 306 Δ Working Capital & Other 2 -265 -191 Cash Flow from Operating Activities 68 115 Capital Expenditures -242 -218 Free Cash Flow to Equity -174 -103 Dividends & Equity 3 26 -47 Change in Net Cash (Debt) -148 -150 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
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  19 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 Transmission Dispatching + 2.06€bn Transmission Dispatching + 2021 2020 = = 0.11€bn 1.95€bn Resolution 565/2020 Resolution 599/2020 2021 Total Grid Fee* Annex 1.91€bn Resolution 568/2019 0.11€bn Resolution 574/2019 2.02€bn 48% 18% 34% RAB remuneration Allowed Opex Allowed D&A * ARERA Resolutions and Terna’s preliminary estimates, net of pass-through items
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  20 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 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
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  21 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 Notes
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  22 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 Notes
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  23 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 Notes
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  24 1Q21 CONSOLIDATED RESULTSMAY 12th 2021 investor.relations@terna.it I +39 06 8313 8282 I www.terna.it