Terna reported its consolidated results for the first nine months of 2023. Revenues increased 13% to €2,247 million driven by higher contributions from regulated transmission and dispatching activities. EBITDA grew 10% to €1,556 million due to growth in regulated activities. Capex increased 39% to a record €1,434 million as Terna continues significant investments to support energy transition goals. Net debt rose to €9,486 million due to capex outpacing cash flow, though financial ratios remained solid. The company reaffirmed its sustainability leadership and progress on key infrastructure projects.
San Donato Milanese, 29 July 2015 – The Snam Board of Directors, chaired by Lorenzo Bini Smaghi, yesterday approved the consolidated half-year report to 30 June 2015 (subjected to a limited audit) and the consolidated results for the second quarter of 2015 (unaudited).
Financial highlights
Total revenue: €1,837 million (+3.1%)
EBITDA: €1,434 million (+0.4%)
Net profit: €612 million (+9.1%)
Technical investments: €487 million
Free cash flow: €587 million
Operating highlights
Gas injected into the transportation network: 32.77 billion cubic metres, in line with the figure for the first half of 2014
Number of active meters: 6.518 million (5.911 million at 30 June 2014)
Available storage capacity: 11.4 billion cubic metres (unchanged compared with 30 June 2014)
Significant events
Completed on 9 July 2015 the activities relating to the revocation of the judicial administration order imposed on the subsidiary Italgas by the Court of Palermo on 11 July 2014
Approved on 22 June 2015 by the Snam Board of Directors the renewal of the Euro Medium Term Notes (EMTN) programme for the issuance of bonds worth a total of €12 billion, unchanged from the previous renewal of the programme
This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
San Donato Milanese, 29 July 2015 – The Snam Board of Directors, chaired by Lorenzo Bini Smaghi, yesterday approved the consolidated half-year report to 30 June 2015 (subjected to a limited audit) and the consolidated results for the second quarter of 2015 (unaudited).
Financial highlights
Total revenue: €1,837 million (+3.1%)
EBITDA: €1,434 million (+0.4%)
Net profit: €612 million (+9.1%)
Technical investments: €487 million
Free cash flow: €587 million
Operating highlights
Gas injected into the transportation network: 32.77 billion cubic metres, in line with the figure for the first half of 2014
Number of active meters: 6.518 million (5.911 million at 30 June 2014)
Available storage capacity: 11.4 billion cubic metres (unchanged compared with 30 June 2014)
Significant events
Completed on 9 July 2015 the activities relating to the revocation of the judicial administration order imposed on the subsidiary Italgas by the Court of Palermo on 11 July 2014
Approved on 22 June 2015 by the Snam Board of Directors the renewal of the Euro Medium Term Notes (EMTN) programme for the issuance of bonds worth a total of €12 billion, unchanged from the previous renewal of the programme
This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
4. Highlights
4
Latest main achievements
Well on track on execution
REGULATED
ACTIVITIES
SUSTAINABILITY ACHIEVEMENTS
▪ Terna reconfirmed as global sustainability
leader
▪ Tyrrhenian link fully
authorized
▪ Final project of Sa.Co.I. 3
authorized
▪ Adriatic link: contract
secured for the supply of
power cables
SHAREHOLDERS REMUNERATION
▪ 11.46 € cents/share approved by today’s
Board of Director as 2023 Interim Dividend
5. Highlights
5
Demand Evolution – Last 12 months
DEMAND AS REPORTED (TWh)
▪ National Demand at 232 TWh, o/w 37% covered by RES
▪ Net Total Production at 197 TWh, o/w 44% covered by RES
9M 2023
Note: 2022 and 2023 preliminary figures
Ensuring the security of supply in a challenging scenario
TWh
24.7 25.0 25.0
26.2
25.1
26.2
23.4
24.3
25.4
30.1
25.7
26.2
20
22
24
26
28
30
32
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Monthly energy demand
Previous Year
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
-6.2% -6.2% -9.1% -4.6% -2.2% -5.0% -4.3% -6.3% -9.2% -3.3% -1.1% 0.5%
YoY Chg%
Δ %
-4.0%
9M23 9M22
232.5 242.1
6. Highlights
6
9M 2023 Key Numbers
Strong growth in all P&L lines and Capex
1. Attributable to Terna
Revenues +13%
EBITDA +10%
Group Net
Income1 +9%
Net Debt 9,486
2,247
1,556
642
8,576
1,992
1,412
587
Actual
€mn
9M 2023 9M 2022 ∆ %
Actual
€mn
Capex +39%
1,434 1,033
FY 2022
8. 9M 2023 Results
8
Revenues
Note: figures may not add up due to rounding
1. Including IFRIC12
Revenues increase in all business areas
Regulated Activities1
Non Regulated and
International Activities
+255
+12.8%
1
1,720
1,904
272
343
1,992
184
71 2,247
9M22 ∆
Regulated
Activities
∆
Non Regulated
and International
Activities
9M23
9. 9M 2023 Results
9
Revenues Analysis
Note: figures may not add up due to rounding
Higher contribution from Regulated activities
1,657 1,810
27
153 22 9
49
36
45
1,720 1,904
9M22 ∆
Transmission &
Dispatching
∆
Other
∆
IFRIC12
9M23
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+184
+10.7%
+71
+25.9%
Transmission & Dispatching
Other
IFRIC12
272
343
272
71 343
9M22 ∆
Non Regulated
and International
Activities
9M23
10. 9M 2023 Results
10
Opex
Note: figures may not add up due to rounding
1. Including IFRIC12
Operating costs evolution driven by higher volume of activity
344
396
232
292
5
3
52
60 -2
580
691
9M22 ∆
Regulated
Activities¹
∆
Non Regulated
Activities
∆
International
Activities
9M23
Regulated Activities1
Non Regulated Act.
International Act.
€mn +111
+19.1%
11. 9M 2023 Results
11
EBITDA
Note: figures may not add up due to rounding
Regulated activities as EBITDA growth driver
€mn
GROUP
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+144
+10.2%
1,412 1,556
9M22 9M23
36 48
12
9M22 ∆ 9M23
1,376 1,508
132
9M22 ∆ 9M23
12. 9M 2023 Results
12
From EBITDA to Net Income
Note: figures may not add up due to rounding
1. Attributable to Terna.
+9% increase in Group Net Income
1,556
980
642 587
577
81 262
-1 -4
EBITDA D&A EBIT Net
Financial
Expenses
Taxes (Profit)/Loss
from
discontinued
operation
Minority
Interest
Group
Net Income
Group
Net Income
9M22
€mn
1
1
+9.3% YoY
13. 9M 2023 Results
13
Capex
Note: figures may not add up due to rounding
1. Of which about € 17mn of Capitalized Financial Charges in 9M2022 and € 36mn in 9M2023
Record-breaking Capex
TOTAL CAPEX
€mn
REGULATED CAPEX
€mn
1
985
1,360
48
74
1,033
1,434
9M22 9M23
Regulated Non Regulated and Other
56%
12%
32%
Development
Defence
Asset Renewal & Efficiency
1,360
+401
+38.8%
14. 9M 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
9,486
1,168
172
1,434
472
Dec.31,
2022
Operating
Cash Flow
Δ WC & Other Capex Dividends,Equity
&
Others
Sep.30,
2023
2
1
€mn
+910
15. 9M 2023 Results
15
Net Debt Evolution & Financial Structure
Maintaining a solid financial structure
~11€bn
GROSS DEBT BREAKDOWN KEY RATIOS
~ 87% Fixed
~ 6 years
Calculated on Gross Debt
Fixed/Floating Ratio
Maturity
Terna SpA Bonds
EIB
Banks
63%
27%
10%
17. Annexes
17
Consolidated Income Statement1
Note: figures may not add up due to rounding
1. Managerial Accounting
2. Including Quality of Service
€ mn 9M23 9M22 Δmn Δ%
Total Revenue 2,247 1,992 255 12.8%
Regulated Activities 1,904 1,720 184 10.7%
Transmission 1,564 1,485 79 5.3%
Dispatching 246 172 74 43.3%
Other² 49 27 22 80.6%
IFRIC12 45 36 9 23.9%
Non Regulated and International Activities 343 272 71 25.9%
Total Costs 691 580 111 19.1%
Regulated Activities 396 344 52 15.1%
Labour Costs 201 181 20 11.3%
External Costs 128 112 16 14.7%
Other² 22 15 7 44.3%
IFRIC12 45 36 9 23.9%
Non Regulated Activities 292 232 60 26.1%
International Activities 3 5 -2 -39.1%
EBITDA 1,556 1,412 144 10.2%
D&A 577 516 61 11.7%
EBIT 980 896 83 9.3%
Net Financial Charges 81 56 25 44.2%
Pre Tax Profit 899 840 58 7.0%
Taxes 262 237 25 10.5%
Tax Rate (%) 29.1% 28.2% - 0.9 pp
Net Income 637 603 34 5.6%
Net Financial Charges
Profit/(Loss) From Discontinued Operations 1 -15 16 105.4%
Total Net Income 638 589 49 8.4%
Minority Interest -4 2 -6 -350.0%
Group Net Income 642 587 55 9.3%
18. Annexes
18
Consolidated Balance Sheet
€ mn Sep. 30,2023 Dec. 31,2022 Δmn
PP&E 17,012 16,201 811
Intangible Asset 807 776 31
Financial Inv. and Other 504 509 -5
Total Fixed Assets 18,323 17,485 838
Net WC -2,529 -2,733 204
Funds -34 -68 34
Net Capital Invested 15,760 14,684 1,076
Net Assets Held for Sale 81 61 19
Total Net Capital Invested 15,841 14,745 1,095
Financed by:
Consolidated Net Debt 9,486 8,576 910
Total Shareholder's Equity 6,355 6,169 186
Total 15,841 14,745 1,095
19. 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 9M23 9M22
Total Net Income 638 589
D&A1
564 514
Net Change in Funds -34 6
Operating Cash Flow 1,168 1,108
Δ Working Capital & Other 2
-172 541
Cash Flow from Operating Activities 995 1,649
Capital Expenditures -1,434 -1,033
Free Cash Flow to Equity -438 616
Net Assets Held for Sale -19 -91
Dividends & Equity 3
-452 827
Change in Net Cash (Debt) -910 1,351
20. Disclaimer
20
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.