Slide 1: 9M 2023 Consolidated Results
9M 2023 Consolidated Results Rome, November 8th 2023
Slide 2: Agenda
Agenda Highlights 3 9M 2023 Results 7 Annexes 16 2
Slide 3: Highlights
Highlights 3
Slide 4: Well on track on execution
Highlights Latest main achievements REGULATED SUSTAINABILITY ACHIEVEMENTS ACTIVITIES ▪ Terna reconfirmed as global sustainability leader ▪ Tyrrhenian link fully authorized ▪ Final project of Sa.Co.I. 3 SHAREHOLDERS REMUNERATION authorized ▪ Adriatic link: contract ▪ 11.46 € cents/share approved by t
Slide 5: Ensuring the security of supply in a challenging scenario
Highlights Demand Evolution – Last 12 months DEMAND AS REPORTED (TWh) 9M23 9M22 Δ% 232.5 242.1 -4.0% TWh Monthly energy demand 32 Previous Year 30 30.1 28 26 26.2 26.2 26.2 25.4 25.7 24 24.7 25.0 25.0 25.1 24.3 22 23.4 20 Oct Nov Dec Dec Jan Feb Mar Apr Apr May Jun Jul Aug Sep Sep YoY Chg % -6.2% -6
Slide 6: Strong growth in all P&L lines and Capex
Highlights 9M 2023 Key Numbers 9M 2023 9M 2022 ∆% Actual Actual €mn €mn Revenues 2,247 1,992 +13% EBITDA 1,556 1,412 +10% Group Net Income1 642 587 +9% Capex 1,434 1,033 +39% FY 2022 Net Debt 9,486 8,576 Strong growth in all P&L lines and Capex 1. Attributable to Terna 6
Slide 7: 9M 2023 Results
9M 2023 Results ee
Slide 8: Revenues increase in all business areas
9M 2023 Results Revenues +255 +12.8% 71 2,247 184 1,992 343 272 1,904 1,720 Regulated Activities1 Non Regulated and International Activities 9M22 ∆ ∆ 9M23 Regulated Non Regulated Activities 1 and International Activities Revenues increase in all business areas Note: figures may not add up due to rou
Slide 9: Higher contribution from Regulated activities
9M 2023 Results Revenues Analysis REGULATED NON REGULATED AND INTERNATIONAL €mn €mn +184 +10.7% +71 1,720 1,904 +25.9% 153 22 9 45 36 71 343 49 27 272 1,657 Transmission & Dispatching 1,810 343 Other 272 IFRIC12 9M22 ∆ ∆ ∆ 9M23 9M22 ∆ 9M23 Transmission & Other IFRIC12 Non Regulated Dispatching and I
Slide 10: Operating costs evolution driven by higher volume of activity
9M 2023 Results Opex €mn +111 +19.1% 691 580 60 -2 3 52 5 292 232 396 344 Regulated Activities1 Non Regulated Act. 9M22 ∆ ∆ ∆ 9M23 International Act. Regulated Non Regulated International Activities¹ Activities Activities Operating costs evolution driven by higher volume of activity Note: figures ma
Slide 11: Regulated activities as EBITDA growth driver
9M 2023 Results EBITDA GROUP REGULATED €mn €mn 132 +144 +10.2% 1,376 1,508 9M22 ∆ 9M23 NON REGULATED AND INTERNATIONAL 1,412 1,556 €mn 12 36 48 9M22 9M23 9M22 ∆ 9M23 Regulated activities as EBITDA growth driver Note: figures may not add up due to rounding 11
Slide 12: +9% increase in Group Net Income
9M 2023 Results From EBITDA to Net Income €mn 577 +9.3% YoY 1,556 81 262 980 -1 -4 642 587 EBITDA D&A EBIT Net Taxes (Profit)/Loss Minority Group Group Financial from Interest Net Income 1 Net Income 1 Expenses discontinued 9M22 operation +9% increase in Group Net Income Note: figures may not add up
Slide 13: Record-breaking Capex
9M 2023 Results Capex TOTAL CAPEX REGULATED CAPEX €mn €mn +401 +38.8% 1,434 1,033 74 32% Development 48 1,360 1,360 56% Defence Asset Renewal & Efficiency 985 12% 9M22 9M23 Regulated Non Regulated and Other 1 Record-breaking Capex Note: figures may not add up due to rounding 1. Of which about € 17mn
Slide 14: Net debt evolution under control
9M 2023 Results Cash Flow & Net Debt Evolution €mn +910 9,486 472 8,576 1,434 1,168 172 1 Dec.31, Operating Δ WC & Other Capex Dividends,Equity Sep.30, 2022 Cash Flow & 2023 Others 2 Net debt evolution under control 1. Including Other Fixed Assets Changes Note: figures may not add up due to rounding
Slide 15: Net Debt Evolution & Financial Structure
9M 2023 Results Net Debt Evolution & Financial Structure GROSS DEBT BREAKDOWN KEY RATIOS Fixed/Floating Ratio Terna SpA Bonds 10% EIB ~ 87% Fixed Banks Calculated on Gross Debt 27% ~11 €bn 63% Maturity ~ 6 years Maintaining a solid financial structure 15
Slide 16: Annexes
Annexes Terna Driving Energy Za wa
Slide 17: Consolidated Income Statement
Annexes Consolidated Income Statement1 € 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
Slide 18: Consolidated Balance Sheet
Annexes 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 Sal
Slide 19: Consolidated Cash Flow
Annexes Consolidated Cash Flow € mn 9M23 9M22 Total Net Income 638 589 D&A 1 564 514 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 A
Slide 20: 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 21: Notes
Notes 241 Terna Driving Energy Za ws
Slide 22: Notes
Notes 22 Terna Driving Energy Za ws
Slide 23: investor.relations@terna.it www.terna.it
investor.relations@terna.it www.terna.it 23
Slide 24: Terna Driving Energy
Ly) aa lerna AS Driving Energy