The document provides a summary of Terna's consolidated results for fiscal year 2021. Key highlights include:
- Revenues increased 5% to €2.605 billion, driven by growth in both regulated and non-regulated activities.
- EBITDA grew 2% to €1.855 billion due to contributions from regulated activities.
- Group net income was in line with the previous year at €789 million.
- Capex increased 13% to €1.521 billion to support Italy's energy transition goals.
- Net debt rose to €10.003 billion but key financial ratios remained solid.
4. Main achievements
Highlights
Ongoing
valorization of
LatAm activities
INTERNATIONAL
ACTIVITIES
Authorization
process better
than expected
REGULATED
ACTIVITIES
Towards energy transition
SUSTAINABILITY
Inclusion in the
main international
sustainability
indexes
9.82 € cents/share,
paid in November
as 2021 Interim
Dividend
SHAREHOLDERS
REMUNERATION
4
5. DEMAND AS REPORTED (TWh)
Electricity demand in line with pre-Covid levels
▪ National Demand at 318 TWh, o/w ~36% covered by RES
▪ Net Total Production at 278 TWh, o/w ~41% covered by RES
FY 2021
Note: 2020 final figures, 2021 preliminary figures
Δ %
5.6%
FY21 FY20
318.1 301.2
Demand Evolution – Last 12 months
Highlights
27.1
24.8
26.4
23.9
24.4
27.2
30.4
26.6 27.0
26.4 26.4
27.4
18
20
22
24
26
28
30
32
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Monthly energy demand
Previous Year
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-1.2% -3.2% 11.5% 21.8% 7.8% 13.4% 5.9% 3.4% 2.5% 1.5% 3.8% 5.9%
YoY Chg%
5
6. 1. Attributable to Terna
2. €/cents per share
FY 2021 Key Numbers
Highlights
Strong capex acceleration delivered
Revenues +5%
EBITDA +2%
Group Net
Income1 In line
Capex +13%
Net Debt 9,173
2,514
1,830
786
1,351
EPS2
€cents
10,003
2,605
1,855
789
1,521
39.3
Restated
€mn
Actual
€mn
39.1
FY 2020 FY 2021 ∆ vs FY 2020
restated
Actual
€mn
9,173
2,490
1,811
786
1,351
39.1
6
7. 1. Attributable to Terna
2. €/cents per share
FY 2021 Key Numbers Restated*
Highlights
2021 guidance met and exceeded
* Guidance and FY 2020 restated with International Activities held for sale
Revenues
EBITDA
Group Net
Income1
Capex
Net Debt 10,003
2,605
1,855
789
1,521
2.57
1.84
1.4
EPS2
€cents
Guidance
€bn
Actual
€mn
39.3 39
FY 2021
Guidance restated
€bn
2.53
1.81
1.4
39
7
9. 1. Including IFRIC12
Revenues increase driven both by Regulated and Non Regulated Activities
Note: figures may not add up due to rounding
Revenues
FY 2021 Results
€mn
+114
+4.6%
2,149 2,254
341
351
0.5
0.4
2,490
105 10 -0.1
2,605
FY20 ∆
Regulated
Activities
∆
Non Regulated
Activities
∆
International
Activities
FY21
1
Regulated Activities1
Non Regulated Act.
International Act.
9
10. Note: figures may not add up due to rounding
Higher contribution from Regulated activities
Revenues Analysis
FY 2021 Results
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+105
+4.9%
+10
+2.9%
Non Regulated Act.
International Act.
2,048 2,155
73
107 -21 18
52
28 47
2,149 2,254
FY20 ∆
Transmission &
Dispatching
∆
Other
∆
IFRIC12
FY21
Transmission & Dispatching
Other
IFRIC12
341 351
0.5 0.4
342 10 -0,1 351
FY20 ∆
Non Regulated
Activities
∆
International
Activities
FY21
Non Regulated Act.
International Act.
10
11. Operating costs evolution driven by higher volume of activity
Note: figures may not add up due to rounding
1. Including IFRIC12
Opex
FY 2021 Results
+71
+10.4%
€mn
Regulated Activities1
Non Regulated Act.
International Act.
428 453
244
289
7
8
25
45 1
679
750
FY20 ∆
Regulated
Activities¹
∆
Non Regulated
Activities
∆
International
Activities
FY21
11
12. Note: figures may not add up due to rounding
EBITDA growth driven by Regulated Activities
EBITDA
FY 2021 Results
€mn
GROUP
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+44
+2.4%
12
1,811
1,855
FY20 FY21
1,721
1,801
80
FY20 ∆ FY21
90
54
-36
FY20 ∆ FY21
13. Solid results delivered
1. Net Profit related to Assets Held for Sale according to IFRS5 accounting principle
2. Attributable to Terna.
From EBITDA to Net Income
FY 2021 Results
€mn
In line YoY
786
2
2
1
Note: figures may not add up due to rounding
13
1,855
1,200
789 720
654
79 318
13 1
EBITDA D&A EBIT Net
Financial
Expenses
Taxes (Profit)/Loss
from
discontinued
operation
Minority
Interest
Group
Net Income
Group
Net Income
FY20
Bargain Purchase
Brugg
post tax
66
14. Maximizing effort to support the decarbonization path
Note: figures may not add up due to rounding
1. Of which about 11 €mn of Capitalized Financial Charges in 2021 and 10 €mn in 2020
Capex
FY 2021 Results
TOTAL CAPEX
€mn
REGULATED CAPEX
€mn
1,521
14
39%
19%
42% Development
Defence
Asset Renewal & Efficiency
1,461
Development
Defence
Asset Renewal & Efficiency
1,233
1,461
118
60
FY20 FY21
Regulated Non Regulated and Other
1,351
1
15. Strong operating cash flow to cover investment needs
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
Cash Flow & Net Debt Evolution
FY 2021 Results
15
9,173
10,003
1,359
56
1,521
611
Dec.31,
2020
Operating
Cash Flow
Δ WC & Other Capex Dividends,Equity
&
Others
Dec.31,
2021
2
1
€mn
+830
16. Strengthening financial structure
GROSS DEBT BREAKDOWN KEY RATIOS
1 1
~ 91% Fixed
~ 5 years
2
Calculated on Gross Debt
Fixed/Floating Ratio
Maturity
1. Percentages and key ratios calculated on Gross Debt nominal value
2. IAS value
Net Debt Evolution & Financial Structure
FY 2021 Results
64%
15%
21%
Terna SpA Bonds
EIB
Banks
Terna SpA Bonds
EIB
Banks
12.5€bn
2
16
17. FY 2021 Results
FY 2021
Consolidated
Results
2021-2025
Industrial Plan
Update
24 March 2022
17 March 2022
17
20. Note: figures may not add up due to rounding
1. Managerial Accounting
2. Including Quality of Service
Consolidated Income Statement1
Annexes
20
€ mn 2021 2020 Δmn Δ%
Total Revenue 2,605 2,490 114 4.6%
Regulated Activities 2,254 2,149 105 4.9%
Transmission 2,041 1,939 103 5.3%
Dispatching 114 109 5 4.1%
Other² 52 73 -21 -28.7%
IFRIC12 47 28 18 64.6%
Non Regulated Activities 351 341 10 2.9%
International Activities 0 1 0 -20.0%
Total Costs 750 679 71 10.4%
Regulated Activities 453 428 25 5.8%
Labour Costs 227 221 6 2.5%
External Costs 157 149 8 5.3%
Other² 22 29 -7 -24.3%
IFRIC12 47 28 18 64.6%
Non Regulated Activities 289 244 45 18.4%
International Activities 8 7 1 11.3%
EBITDA 1,855 1,811 44 2.4%
D&A 654 634 20 3.2%
EBIT 1,200 1,177 24 2.0%
Net Financial Charges 79 86 -7 -8.3%
Pre Tax Profit 1,122 1,091 31 2.8%
Taxes 318 297 21 6.9%
Tax Rate (%) 28.3% 27.3% - +1.0 pp
Net Income 804 793 10 1.3%
Net Financial Charges
(Profit)/Loss From Discontinued Operations -13 2 -15 0.0%
Total Net Income 791 795 -5 -0.6%
Minority Interest 1 10 -8 -85.7%
Group Net Income 789 786 4 0.5%
21. Note: figures may not add up due to rounding
1. Managerial Accounting
2. Including Quality of Service
Consolidated Income Statement1
Annexes
21
€ mn FY 20 Reported Restatement FY 20 Restated Δ%
Total Revenue 2,514 -23 2,490 -0.9%
Regulated Activities 2,149 0 2,149 0.0%
Transmission 1,939 0 1,939 0.0%
Dispatching 109 0 109 0.0%
Other² 73 0 73 -0.1%
IFRIC12 28 0 28 0.1%
Non Regulated Activities 341 0 341 0.0%
International Activities 24 -23 1 -97.9%
Total Costs 683 -4 679 -0.5%
Regulated Activities 428 0 428 0.0%
Labour Costs 221 0 221 0.0%
External Costs 149 0 149 0.0%
Other² 29 0 29 -0.1%
IFRIC12 28 0 28 0.1%
Non Regulated Activities 244 0 244 0.0%
International Activities 11 -4 7 -34.3%
EBITDA 1,830 -19 1,811 -1.1%
D&A 644 -9 634 -1.5%
EBIT 1,187 -10 1,177 -0.8%
Net Financial Charges 94 -8 86 -8.1%
Pre Tax Profit 1,093 -2 1,091 -0.2%
Taxes 298 0 297 -0.1%
Tax Rate (%) 27.2% +0.1 pp 27.3%
Net Income 795 -2 793 -0.3%
(Profit)/Loss From Discontinued Operations 0 2 2 100.0%
Total Net Income 795 0 795 0.0%
Minority Interest 10 0 10 -0.2%
Group Net Income 786 0 786 0.0%
22. Consolidated Balance Sheet
Annexes
22
€ mn Dec. 31,2021 Dec. 31,2020 Δmn
PP&E 15,317 14,560 757
Intangible Asset 657 578 79
Financial Inv. and Other 380 508 -129
Total Fixed Assets 16,353 15,646 707
Net WC -1,707 -1,936 230
Funds -48 -121 73
Net Capital Invested 14,598 13,588 1,009
Net Assets Held for Sale 118 0 118
Total Net Capital Invested 14,716 13,588 1,127
Financed by:
Consolidated Net Debt 10,003 9,173 830
Total Shareholder's Equity 4,713 4,416 297
Total 14,716 13,588 1,127
23. Consolidated Cash Flow
Annexes
23
€ mn 2021 2020
Total Net Income 791 795
D&A¹ 641 636
Net Change in Funds -73 -89
Operating Cash Flow 1,359 1,343
Δ Working Capital & Other² -56 -294
Cash Flow from Operating Activities 1,302 1,049
Capital Expenditures -1,521 -1,351
Free Cash Flow to Equity -219 -303
Net Assets Held for Sale -118 0
Dividends & Equity³ -494 -611
Change in Net Cash (Debt) -830 -914
3. Including Cash Flow Hedge accruals and other
1. Net of assets’ disposal
2. Including Other Fixed Assets Changes Note: figures may not add up due to rounding
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