Slide 1: FY 2022 Consolidated Results
FY 2022 Consolidated Results Rome, March 22nd 2023
Slide 2: Agenda
Agenda Highlights 3 FY 2022 Results 8 Closing Remarks 17 Annexes 21 2
Slide 3: Highlights
Highlights 3
Slide 4: Value creation for all stakeholders
Highlights Latest main achievements REGULATED SUSTAINABILITY SHAREHOLDERS ACTIVITIES ACHIEVEMENTS REMUNERATION ▪ New projects approved for ▪ Terna confirmed as global ▪ Proposed 2022 Final more than €2.5 billion sustainability leader Dividend of 20.83 € investments during 2022 cents/share INTERNATIO
Slide 5: A secure and resilient system despite the complex scenario
Highlights Demand Evolution – Last 12 months DEMAND AS REPORTED (TWh) FY22 FY21 Δ% 316.8 319.9 -1.0% TWh Monthly energy demand 34 Previous Year 32 31.1 30 27.6 28.0 28 27.4 25.9 26 25.6 24.4 26.0 26.0 24 24.7 25.0 25.0 22 Jan Jan Feb Feb Mar Mar Apr Apr May May Jun Jun Jul Aug Aug Sep Sep Oct Oct No
Slide 6: Strong growth in P&L and Capex
Highlights 2022 Key Numbers FY 2021 FY 2022 ∆% FY 2022 Actual Actual Guidance €mn €mn €bn Revenues 2,605 2,964 +13.8% 2.74 EBITDA 1,855 2,059 +11.0% 2.0* Group Net +8.6% 789 857 Income1 EPS2 39.3 42.6 42* Capex 1,521 1,757 +15.5% 1.7 Net Debt 10,003 8,576 Strong growth in P&L and Capex 1. Attributab
Slide 7: Terna's growth path
Highlights 2020-2022 main achievements REVENUES EBITDA €mn +19% €mn +14% 2,059 2,964 1,855 1,811 2,490 2,605 2020 2021 2022 2020 2021 2022 EPS CAPEX €/cents +9% €mn +30% 1,757 42.6 39.1 39.3 1,521 1,351 2020 2021 2022 2020 2021 2022 Terna’s growth path 7
Slide 8: FY 2022 Results
FY 2022 Results ee
Slide 9: Growth driven by Regulated and Non Regulated activities
FY 2022 Results Revenues €mn +360 +13.8% 2,964 2,605 289 71 0.4 0.8 0.4 421 351 2,542 2,254 FY21 ∆ ∆ ∆ FY22 Regulated Activities1 Regulated Non Regulated International Non Regulated Act. Activities 1 Activities Activities International Act. Growth driven by Regulated and Non Regulated activities Not
Slide 10: Higher contribution from Regulated Activities
FY 2022 Results Revenues Analysis REGULATED NON REGULATED AND INTERNATIONAL €mn €mn +289 +12.8% 2,254 2,542 +71 264 4 21 67 +20.2% 47 422 56 71 0.4 52 351 0.8 0.4 Transmission & Dispatching 2,419 2,155 421 Other 351 Non Regulated Act. IFRIC12 International Act. FY21 ∆ ∆ ∆ FY22 FY21 ∆ ∆ FY22 Transmis
Slide 11: Operating cost evolution driven by organic activities increase
FY 2022 Results Opex €mn +155 +20.7% 905 750 75 -2 6 82 8 364 289 535 453 Regulated Activities1 Non Regulated Act. International Act. FY21 ∆ ∆ ∆ FY22 Regulated Non Regulated International Activities¹ Activities Activities Operating cost evolution driven by organic activities increase Note: figures m
Slide 12: Regulated Activities as EBITDA growth driver
FY 2022 Results EBITDA GROUP REGULATED €mn €mn 206 +204 +11.0% 1,801 2,007 FY21 ∆ FY22 NON REGULATED AND INTERNATIONAL €mn 1,855 2,059 -2 54 52 FY21 FY22 FY21 ∆ FY22 Regulated Activities as EBITDA growth driver Note: figures may not add up due to rounding 12
Slide 13: +9% increase in Group Net Income
FY 2022 Results From EBITDA to Net Income €mn 726 +9% YoY 100 355 2,059 1,334 20 1 857 789 EBITDA D&A EBIT Net Taxes (Profit)/Loss Minority Group Group Financial from Interest Net Income 1 Net Income Expenses discontinued FY21 1 operation +9% increase in Group Net Income Note: figures may not add up
Slide 14: Enabling the energy transition
FY 2022 Results Capex TOTAL CAPEX REGULATED CAPEX €mn €mn 1,757 1,521 89 60 41% Development Development 43% Defence 1,461 1,668 1,668 Defence Asset Asset Renewal Renewal & Efficiency & Efficiency FY21 FY22 16% Regulated Non Regulated and Other 1 Enabling the energy transition Note: figures may not a
Slide 15: Operating cash flow supports investments need
FY 2022 Results Cash Flow & Net Debt Evolution €mn -1,426 10,003 1,596 8,576 655 1,757 932 1 Dec.31, Operating Δ WC & Other Capex Dividends,Equity Dec.31, 2021 Cash Flow & 2022 2 Others Operating cash flow supports investments need 1. Including Other Fixed Assets Changes Note: figures may not add up
Slide 16: Net Debt Evolution & Financial Structure
FY 2022 Results Net Debt Evolution & Financial Structure 1 GROSS DEBT BREAKDOWN KEY RATIOS1 Fixed/Floating Ratio Terna SpA Bonds 15% EIB ~ 87% Fixed Banks Calculated on Gross Debt 23% ~11€bn2 62% Maturity ~ 5 years Efficient and proactive debt management approach 1. Percentages and key ratios calcul
Slide 17: Closing Remarks
Closing Remarks wa Terna 7a Driving Energy
Slide 18: 2023 Guidance
Closing remarks 2023 Guidance FY 2022 FY 2023 Actual Guidance €mn €bn Revenues 2,964 3.11 EBITDA 2,059 2.12 EPS1 42.6 43 Capex 1,757 2.2 Solid base growth for the future 1. €/cents per share. Calculated as group net income on total number of shares. 18
Slide 19: 2023 Ten-year National Development Plan
Closing remarks 2023 Ten-year National Development Plan €bn +17% Over 30 Strong acceleration in grid investments, in order to achieve climate and energy Over 21 targets 18.1 Over 21€bn of investments foreseen in the 2023-2032 period aimed at increasing transport capacity, security Development Plan 2
Slide 20: Value creation for all stakeholders
Closing remarks Value creation for all stakeholders Low risk profile and financial stability Focus on execution 20
Slide 21: Annexes
Annexes 21
Slide 22: Consolidated Income Statement
Annexes Consolidated Income Statement1 € mn 2022 2021 Δmn Δ% Total Revenue 2,964 2,605 360 13.8% Regulated Activities 2,542 2,254 289 12.8% Transmission 1,969 2,041 -72 -3.5% Dispatching 450 114 336 295.4% Other² 56 52 4 8.7% IFRIC12 67 47 21 43.7% Non Regulated Activities 421 351 71 20.1% Internati
Slide 23: Consolidated Balance Sheet
Annexes Consolidated Balance Sheet € mn Dec. 31,2022 Dec. 31,2021 Δmn PP&E 16,201 15,317 884 Intangible Asset 776 657 119 Financial Inv. and Other 509 380 129 Total Fixed Assets 17,485 16,353 1,132 Net WC -2,733 -1,707 -1,026 Funds -68 -48 -20 Net Capital Invested 14,684 14,598 87 Net Assets Held fo
Slide 24: Consolidated Cash Flow
Annexes Consolidated Cash Flow € mn 2022 2021 Total Net Income 858 791 D&A¹ 719 641 Net Change in Funds 20 -73 Operating Cash Flow 1,596 1,359 Δ Working Capital & Other² 932 -57 Cash Flow from Operating Activities 2,528 1,302 Capital Expenditures -1,757 -1,521 Free Cash Flow to Equity 771 -219 Net A
Slide 25: 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
Slide 26: Notes
Notes 26 Terna Driving Energy Za ws
Slide 27: investor.relations@terna.it www.terna.it
investor.relations@terna.it www.terna.it 27
Slide 28: wd Terna
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