Skip to main content
UploadLanguage (EN)Support
BusinessMobileSocial MediaMarketingTechnologyArt & PhotosCareerDesignEducationPresentations & Public SpeakingGovernment & NonprofitHealthcareInternetLawLeadership & ManagementAutomotiveEngineeringSoftwareRecruiting & HRRetailSalesServicesScienceSmall Business & EntrepreneurshipFoodEnvironmentEconomy & FinanceData & AnalyticsInvestor RelationsSportsSpiritualNews & PoliticsTravelSelf ImprovementReal EstateEntertainment & HumorHealth & MedicineDevices & HardwareLifestyle
Terna SpA, profile picture
Uploaded byTerna SpA
PDF, PPTX70 views

Terna – 1Q 2023 Consolidated Results Presentation

Terna reported its consolidated results for the first quarter of 2023. Revenues increased 11% to €713 million driven by growth in regulated transmission and dispatching activities. EBITDA rose 8% to €500 million and group net income increased 4% to €200 million. Capex was up 7% to €315 million, with investments focused on development projects. Net debt stood at €8.847 billion, an increase of €271 million primarily due to capital expenditures exceeding operating cash flow. Overall, Terna delivered solid financial results in 1Q 2023 and continued progress on its investment plan.

Investor Relations◦
Download as PDF, PPTX
1Q 2023 Consolidated Results Rome, May 5th 2023
7 Annexes 16 1Q 2023 Results 3 Highlights Agenda 2
Highlights 3
Highlights 4 Latest main achievements Focus on execution Significant improvement in all economic and financial indicators Tyrrhenian Link: second and third tranches of the €1.9 billion loan provided by EIB €750 million bond issue successfully launched
Highlights 5 Demand Evolution – Last 12 months DEMAND AS REPORTED (TWh) ▪ National Demand at 77 TWh, o/w ~30% covered by RES ▪ Net Total Production at 64 TWh, o/w ~36% covered by RES 1Q 2023 Note: 2022-2023 preliminary figures Guaranteeing a safe management of the electricity system TWh 24.4 25.9 28.0 31.1 26.0 26.0 24.7 25.0 25.0 26.2 25.1 26.2 22 24 26 28 30 32 34 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Monthly energy demand Previous Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar -0.2% 3.9% 2.3% 2.3% -2.5% -3.5% -6.2% -6.2% -9.1% -4.6% -2.2% -5.0% YoY Chg% Δ % -4.0% 1Q23 1Q22 77.4 80.6
Highlights 6 1Q 2023 Key Numbers Solid P&L results and strong capex delivery 1. Attributable to Terna Revenues +11% EBITDA +8% Group Net Income1 +4% Net Debt 8,847 713 500 200 8,576 644 461 192 Actual €mn 1Q 2023 1Q 2022 ∆ % Actual €mn Capex +7% 315 293 FY 2022
1Q 2023 Results 7
1Q 2023 Results 8 Revenues Note: figures may not add up due to rounding 1. Including IFRIC12 Double digit increase in Revenues Regulated Activities1 Non Regulated Act. €mn +68 +10.6% 1 562 614 82 99 644 52 16 713 1Q22 ∆ Regulated Activities ∆ Non Regulated Activities 1Q23
1Q 2023 Results 9 Revenues Analysis Note: figures may not add up due to rounding Revenues driven by Regulated Activities increase 543 588 9 45 7 0 15 10 10 562 614 1Q22 ∆ Transmission & Dispatching ∆ Other ∆ IFRIC12 1Q23 €mn REGULATED €mn NON REGULATED +52 +9.2% +16 +19.7% Transmission & Dispatching Other IFRIC12 82 99 82 16 99 1Q22 ∆ Non Regulated Activities 1Q23
1Q 2023 Results 10 Opex Note: figures may not add up due to rounding 1. Including IFRIC12 Opex dynamic driven by organic activities increase 114 128 68 83 1 1 14 15 0 183 213 1Q22 ∆ Regulated Activities¹ ∆ Non Regulated Activities ∆ International Activities 1Q23 Regulated Activities1 Non Regulated Act. International Act. €mn +29 +16.1%
1Q 2023 Results 11 EBITDA Note: figures may not add up due to rounding EBITDA growth driven by Regulated Activities €mn GROUP €mn REGULATED €mn NON REGULATED AND INTERNATIONAL +39 +8.4% 461 500 1Q22 1Q23 13 14 1 1Q22 ∆ 1Q23 448 486 38 1Q22 ∆ 1Q23
500 313 200 192 187 32 81 0 -1 EBITDA D&A EBIT Net Financial Expenses Taxes (Profit)/Loss from discontinued operation Minority Interest Group Net Income Group Net Income 1Q22 1Q 2023 Results 12 From EBITDA to Net Income Note: figures may not add up due to rounding 1. Attributable to Terna. +4% Net Income increase €mn 1 1 +4.4% YoY
1Q 2023 Results 13 Capex Note: figures may not add up due to rounding 1. Of which about € 4mn of Capitalized Financial Charges in 1Q2022 and € 14mn in 1Q2023 +7% YoY capex acceleration TOTAL CAPEX €mn REGULATED CAPEX €mn 1 281 288 13 27 293 315 1Q22 1Q23 Regulated Non Regulated and Other 43% 13% 44% Development Defence Asset Renewal & Efficiency 288
1Q 2023 Results 14 Cash Flow & Net Debt Evolution 1. Including Other Fixed Assets Changes 2. Including Assets Held for Sale, Cash Flow Hedge reserve and other Note: figures may not add up due to rounding Net Debt evolution under control 8,576 8,847 368 309 315 15 Dec.31, 2022 Operating Cash Flow Δ WC & Other Capex Dividends,Equity & Others Mar.31, 2023 2 1 €mn +271
~11€bn 1Q 2023 Results 15 Net Debt Evolution & Financial Structure Maintain a solid financial structure GROSS DEBT BREAKDOWN KEY RATIOS ~ 87% Fixed ~ 5 years Calculated on Gross Debt Fixed/Floating Ratio Maturity Terna SpA Bonds EIB Banks 62% 23% 15%
Annexes 16
Annexes 17 Consolidated Income Statement1 Note: figures may not add up due to rounding 1. Managerial Accounting 2. Including Quality of Service € mn 1Q23 1Q22 Δmn Δ% Total Revenue 713 644 68 10.6% Regulated Activities 614 562 52 9.2% Transmission 508 485 23 4.8% Dispatching 80 58 22 37.0% Other² 15 9 7 75.0% IFRIC12 10 10 0 4.1% Non Regulated Activities 99 82 16 19.7% Total Costs 213 183 29 16.1% Regulated Activities 128 114 14 12.7% Labour Costs 68 63 5 8.4% External Costs 41 35 7 19.7% Other² 8 6 2 30.2% IFRIC12 10 10 0 4.1% Non Regulated Activities 83 68 15 21.9% International Activities 1 1 0 0.0% EBITDA 500 461 39 8.4% D&A 187 168 19 11.3% EBIT 313 294 20 6.7% Net Financial Charges 32 24 8 31.6% Pre Tax Profit 281 269 12 4.5% Taxes 81 76 5 6.7% Tax Rate (%) 28.9% 28.3% - 0.6 pp Net Income 200 193 7 3.6% Net Financial Charges Profit/(Loss) From Discontinued Operations 0 -1 1 -54.5% Total Net Income 200 192 8 3.9% Minority Interest -1 0 -1 -450.0% Group Net Income 200 192 8 4.4%
Annexes 18 Consolidated Balance Sheet € mn 1Q23 FY22 Δmn PP&E 16,299 16,201 98 Intangible Asset 777 776 1 Financial Inv. and Other 517 509 8 Total Fixed Assets 17,593 17,485 107 Net WC -2,399 -2,733 334 Funds -54 -68 14 Net Capital Invested 15,139 14,684 455 Net Assets Held for Sale 65 61 4 Total Net Capital Invested 15,205 14,745 459 Financed by: Consolidated Net Debt 8,847 8,576 271 Total Shareholder's Equity 6,357 6,169 188 Total 15,205 14,745 459
Annexes 19 Consolidated Cash Flow 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, Hybrid Green Bond and other € mn 1Q23 1Q22 Total Net Income 200 192 D&A1 183 167 Net Change in Funds -14 12 Operating Cash Flow 368 371 Δ Working Capital & Other 2 -309 151 Cash Flow from Operating Activities 59 522 Capital Expenditures -315 -293 Free Cash Flow to Equity -256 228 Net Assets Held for Sale -4 -16 Dividends & Equity 3 -11 1,107 Change in Net Cash (Debt) -271 1,319
Annexes 20 2023 Total Grid Fee* *ARERA Resolutions and Terna’s preliminary estimates, net of pass-through items Transmission Dispatching + 2.14€bn Transmission Dispatching + 2023 2022 = = 0.12€bn 2.02€bn Resolution 719/2022 Resolution 738/2022 1.91€bn Resolution 622/2021 0.11€bn Resolution 629/2021 2.02€bn 45% 18% 37% RAB remuneration Allowed Opex Allowed D&A
Disclaimer 21 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.
Notes 22
23 investor.relations@terna.it www.terna.it
Terna – 1Q 2023 Consolidated Results Presentation