Slide 1: 9M 2022 Consolidated Results
9M 2022 Consolidated Results Rome, November 9th 2022
Slide 2: Agenda
Agenda Highlights 3 9M 2022 Results 7 Closing Remarks 16 Annexes 19 2
Slide 3: Highlights
Highlights ee
Slide 4: Towards a decarbonized and sustainable future
Highlights Latest main achievements REGULATED ESG SHAREHOLDERS ACTIVITIES COMMITMENT REMUNERATION ▪ Tyrrhenian Link: Authorization ▪ Confirmation for the 12th ▪ 10.61 € cents/share process well on track with consecutive year in the Stoxx approved by today’s Board planned milestones Global ESG Leader
Slide 5: Ensuring a reliable, efficient and safe electricity system
Highlights Demand Evolution – Last 12 months DEMAND AS REPORTED (TWh) 9M22 9M21 Δ% 240.9 237.9 1.3% TWh Monthly energy demand 9M 2022 34 Previous Year 32 31.0 30 27.9 28 27.4 27.5 27.3 26.4 26.4 25.5 25.7 26.0 26 25.9 24 24.1 22 Oct Oct Nov Nov Dec Dec Jan Jan Feb Feb Mar Mar Apr Apr May May Jun Jun
Slide 6: Growth in all P&L lines and solid capex acceleration
Highlights 9M 2022 Key Numbers 9M 2021 9M 2022 ∆ vs 9M 2021 restated Actual Restated Actual €mn €mn €mn Revenues 1,902 1,890 1,992 +5% EBITDA 1,374 1,365 1,412 +3% Group Net Income1 580 580 587 +1% Capex 925 923 1,033 +12% FY 2021 9M 2022 Net Debt 10,003 8,651 Growth in all P&L lines and solid capex
Slide 7: 9M 2022 Results
9M 2022 Results ga Jerna
Slide 8: Revenues increase in all business areas
9M 2022 Results Revenues €mn +102 +5.4% 26 1,992 1,890 77 272 246 1,644 1,720 Regulated Activities1 Non Regulated Act. 9M21 ∆ ∆ 9M22 International Act. Regulated Non Regulated Activities 1 and International Activities Revenues increase in all business areas Note: figures may not add up due to roundi
Slide 9: Regulated investments as growth driver
9M 2022 Results Revenues Analysis REGULATED NON REGULATED AND INTERNATIONAL €mn €mn +77 +4.7% 1,644 1,720 +26 72 -5 9 36 +10.5% 27 32 27 26 272 0.3 246 0.6 0.3 1,585 1,657 Transmission & Dispatching 246 272 Other Non Regulated Act. IFRIC12 International Act. 9M21 ∆ ∆ ∆ 9M22 9M21 ∆ ∆ 9M22 Transmissio
Slide 10: Operating costs evolution driven by business acceleration
9M 2022 Results Opex €mn +55 +10.5% 580 525 28 -1 5 28 5 232 204 316 344 Regulated Activities1 Non Regulated Act. 9M21 ∆ ∆ ∆ 9M22 Regulated Non Regulated International International Act. Activities¹ Activities Activities Operating costs evolution driven by business acceleration Note: figures may not
Slide 11: Over 3% EBITDA growth
9M 2022 Results EBITDA GROUP REGULATED €mn €mn +47 49 +3.5% 1,327 1,376 9M21 ∆ 9M22 NON REGULATED AND INTERNATIONAL €mn 1,365 1,412 -2 38 36 9M21 9M22 9M21 ∆ 9M22 Over 3% EBITDA growth Note: figures may not add up due to rounding 11
Slide 12: Robust P&L results
9M 2022 Results From EBITDA to Net Income €mn 516 +1% YoY , 1.412 56 237 896 15 2 587 580 EBITDA D&A EBIT Net Taxes (Profit)/Loss Minority Group Group 1 Financial from Interest Net Income Net Income Expenses discontinued 9M21 1 operation Robust P&L results Note: figures may not add up due to roundin
Slide 13: Well on track with capex execution
9M 2022 Results Capex TOTAL CAPEX REGULATED CAPEX €mn €mn 923 1,033 48 40 41% Development Development 45% 985 Defence Defence Asset Asset Renewal Renewal & Efficiency & Efficiency 882 985 14% 9M21 9M22 1 Regulated Non Regulated and Other Well on track with capex execution Note: figures may not add u
Slide 14: Positive impact by debt management and cash flow generation
9M 2022 Results Cash Flow & Net Debt Evolution €mn -1,351 10,003 1,108 8,651 735 1,033 541 1 Dec.31, Operating Δ WC & Other Capex Dividends,Equity Sep.30, 2021 Cash Flow & 2022 2 Others Positive impact by debt management and cash flow generation 1. Including Other Fixed Assets Changes Note: figures
Slide 15: Solid and diversified financial structure
9M 2022 Results Net Debt Evolution & Financial Structure 1 GROSS DEBT BREAKDOWN KEY RATIOS1 Fixed/Floating Ratio Terna SpA Bonds 14% EIB ~ 87% Fixed Banks Calculated on Gross Debt 20% ~11 €bn2 66% Maturity ~ 5 years Solid and diversified financial structure 1. Percentages and key ratios calculated o
Slide 16: Closing Remarks
Closing Remarks 16
Slide 17: Net debt and cost of debt under control
Closing remarks Net debt and cost of debt under control Well on track on execution 2022 guidance 17
Slide 18: Q&A Session
Q&A Session 18
Slide 19: Annexes
Annexes 19
Slide 20: Consolidated Income Statement
Annexes Consolidated Income Statement1 € mn 9M22 9M21 Δmn Δ% Total Revenue 1,992 1,890 102 5.4% Regulated Activities 1,720 1,644 77 4.7% Transmission 1,485 1,499 -14 -1.0% Dispatching 172 85 86 101.5% Other² 27 32 -5 -14.4% IFRIC12 36 27 9 34.3% Non Regulated Activities 272 246 26 10.4% Internationa
Slide 21: Consolidated Income Statement (9M21 restatement)
Annexes Consolidated Income Statement1 € mn 9M21 Reported Restatement 9M21 Restated Total Revenue 1,902 -12 1,890 Regulated Activities 1,644 0 1,644 Transmission 1,499 0 1,499 Dispatching 85 0 85 Other² 32 0 32 IFRIC12 27 0 27 Non Regulated Activities 246 0 246 International Activities 12 -12 0 Tota
Slide 22: Consolidated Balance Sheet
Annexes Consolidated Balance Sheet € mn Sep. 30,2022 Dec. 31,2021 Δmn PP&E 15,729 15,317 413 Intangible Asset 718 657 62 Financial Inv. and Other 531 380 151 Total Fixed Assets 16,978 16,353 625 Net WC -2,354 -1,707 -647 Funds -54 -48 -6 Net Capital Invested 14,570 14,598 -28 Net Assets Held for Sal
Slide 23: Consolidated Cash Flow
Annexes Consolidated Cash Flow € mn 9M22 9M21 Total Net Income 589 582 D&A¹ 514 481 Net Change in Funds 6 -43 Operating Cash Flow 1,108 1,020 Δ Working Capital & Other² 541 -161 Cash Flow from Operating Activities 1,649 859 Capital Expenditures -1,033 -925 Free Cash Flow to Equity 616 -67 Net Assets
Slide 24: 2022 Total Grid Fee
Annexes 2022 Total Grid Fee* 2021 2022 Transmission Transmission 1.95€bn 1.91€bn Resolution 565/2020 Resolution 622/2021 36% + + 46% Dispatching Dispatching 0.11€bn 0.11€bn 18% Resolution 599/2020 Resolution 629/2021 = = RAB remuneration 2.06€bn 2.02€bn Allowed Opex Allowed D&A *ARERA Resolutions an
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
wd Terna BV aN Driving Energy