Terna S.p.a. · MIL:TRN

Terna — Q4 2021 Earnings Presentation

28 slides from Terna's earnings presentation, Mar 17, 2021

  1. Slide 1: FY 2021 Consolidated Results

    Rome, March 17th 2022 FY 2021Consolidated Results

  2. Slide 2: Agenda

    Agenda Highlights 3 FY 2021 Results 8 Annexes 19 2

  3. Slide 3: Highlights

    Highlights 3 ZTerna

  4. Slide 4: Towards energy transition

    Highlights Main achievements REGULATED INTERNATIONAL SUSTAINABILITY SHAREHOLDERS ACTIVITIES ACTIVITIES REMUNERATION Authorization Ongoing Inclusion in the 9.82 € cents/share, process better valorization of main international paid in November than expected LatAm activities sustainability as 2021 Inte

  5. Slide 5: Electricity demand in line with pre-Covid levels

    Highlights Demand Evolution – Last 12 months DEMAND AS REPORTED (TWh) FY21 FY20 Δ% 318.1 301.2 5.6% 32 Monthly energy demand 30.4 Previous Year 30 27.2 27.0 27.4 28 26.4 26.6 26.4 26.4 26 27.1 24.4 24 24.8 22 23.9 20 18 Jan Jan Feb Feb Mar Mar Apr Apr May May Jun Jun Jul Jul Aug Aug Sep Sep Oct Oct

  6. Slide 6: Strong capex acceleration delivered

    Highlights FY 2021 Key Numbers FY 2020 FY 2021 ∆ vs FY 2020 restated Actual Restated Actual €mn €mn €mn Revenues 2,514 2,490 2,605 +5% EBITDA 1,830 1,811 1,855 +2% Group Net Income1 786 786 789 In line EPS2€cents 39.1 39.1 39.3 Capex 1,351 1,351 1,521 +13% Net Debt 9,173 9,173 10,003 Strong capex ac

  7. Slide 7: 2021 guidance met and exceeded

    Highlights FY 2021 Key Numbers Restated* FY 2021 Actual Guidance Guidance restated €mn €bn €bn Revenues 2,605 2.57 2.53 EBITDA 1,855 1.84 1.81 Group Net Income1 789 EPS2€cents 39.3 39 39 Capex 1,521 1.4 1.4 Net Debt 10,003 2021 guidance met and exceeded 7 1. Attributable to Terna 2. €/cents per shar

  8. Slide 8: FY 2021 Results

    FY 2021 Results ZTerna 8

  9. Slide 9: Revenues increase driven both by Regulated and Non Regulated Activities

    FY 2021 Results Revenues €mn +114 +4.6% 2,490 2,605 105 10 -0.1 0.4 0.5 351 341 2,149 2,254 Regulated Activities1 Non Regulated Act. FY20 ∆ ∆ ∆ FY21 International Act. Regulated Non Regulated International Activities 1 Activities Activities Revenues increase driven both by Regulated and Non Regulate

  10. Slide 10: Higher contribution from Regulated activities

    FY 2021 Results Revenues Analysis REGULATED NON REGULATED AND INTERNATIONAL €mn €mn +105 +4.9% +10 2,149 2,254 +2.9% 107 -21 18 47 28 73 52 342 10 -0,1 351 0.5 0.4 2,048 2,155 341 Non Regulated Non Regulated Act. Act. 351 Transmission & Dispatching Other International Act. International Act. IFRIC12

  11. Slide 11: Operating costs evolution driven by higher volume of activity

    FY 2021 Results Opex €mn +71 +10.4% 750 679 45 1 8 25 7 289 244 428 453 Regulated Activities1 Non Regulated Act. FY20 ∆ ∆ ∆ FY21 International Act. Regulated Non Regulated International Activities¹ Activities Activities Operating costs evolution driven by higher volume of activity 11 Note: figures m

  12. Slide 12: EBITDA growth driven by Regulated Activities

    FY 2021 Results EBITDA GROUP REGULATED €mn €mn 80 +44 +2.4% 1,801 1,721 FY20 ∆ FY21 NON REGULATED AND INTERNATIONAL €mn 1,855 1,811 -36 90 54 FY20 FY21 FY20 ∆ FY21 EBITDA growth driven by Regulated Activities 12 Note: figures may not add up due to rounding

  13. Slide 13: Solid results delivered

    FY 2021 Results From EBITDA to Net Income €mn 654 In line YoY 79 318 1,855 786 13 66 1,200 1 Bargain Purchase Brugg 789 720 post tax EBITDA D&A EBIT Net Taxes (Profit)/Loss Minority Group Group Financial from Interest Net Income 2 Net Income Expenses discontinued FY202 operation1 Solid results deliv

  14. Slide 14: Maximizing effort to support the decarbonization path

    FY 2021 Results Capex TOTAL CAPEX REGULATED CAPEX €mn €mn 1,521 1,351 60 118 42% 39% Development Development Defence Defence 1,461 AssetRenewal Asset Renewal&&Efficiency Efficiency 1,461 1,233 19% FY20 FY21 Regulated Non Regulated and Other 1 Maximizing effort to support the decarbonization path 14

  15. Slide 15: Strong operating cash flow to cover investment needs

    FY 2021 Results Cash Flow & Net Debt Evolution €mn +830 10,003 611 9,173 1,359 1,521 56 Dec.31, Operating Δ WC & Other 1 Capex Dividends,Equity Dec.31, 2020 Cash Flow & 2021 2 Others Strong operating cash flow to cover investment needs 15 1. Including Other Fixed Assets Changes Note: figures may not

  16. Slide 16: ~5 years Strengthening financial structure

    FY 2021 Results Net Debt Evolution & Financial Structure 1 GROSS DEBT BREAKDOWN KEY RATIOS1 Fixed/Floating Ratio Terna TernaSpA SpABonds Bonds 21% EIB EIB ~ 91% Fixed Banks Calculated on Gross Debt Banks 12.5€bn 22 15% 64% Maturity ~ 5 years Strengthening financial structure 16 1. Percentages and ke

  17. Slide 17: 2021-2025 Consolidated Industrial Plan Results Update

    FY 2021 Results FY 2021 2021-2025 Consolidated Industrial Plan Results Update 17 March 2022 24 March 2022 17

  18. Slide 18: Q&A Session

    Q&A Session wa Terna WAN Driving Energy

  19. Slide 19: Annexes

    Annexes ZTerna

  20. Slide 20: Consolidated Income Statement

    Annexes Consolidated Income Statement1 € 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

  21. Slide 21: Consolidated Income Statement (restated)

    Annexes Consolidated Income Statement1 € 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

  22. Slide 22: Consolidated Balance Sheet

    Annexes Consolidated Balance Sheet € 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

  23. Slide 23: Consolidated Cash Flow

    Annexes Consolidated Cash Flow € 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 Ne

  24. Slide 24: Disclaimer

    Disclaimer 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 INFORMATI

  25. Slide 25: Notes

    Notes 25

  26. Slide 26: Notes

    Notes 26

  27. Slide 27: Notes

    Notes 27

  28. Slide 28: Investor relations contact

    investor.relations@terna.it www.terna.it 28

Terna — Q4 2021 Earnings Presentation on 6ix