Slide 1: 1H 2023 Consolidated Results
1H 2023 Consolidated Results Rome, July 27th 2023
Slide 2: Agenda
Agenda Highlights 3 1H 2023 Results 7 Closing Remarks 16 Annexes 18 2
Slide 3: Highlights
Highlights 3
Slide 4: Latest main achievements: Towards a sustainable future
Highlights Latest main achievements REGULATED SUSTAINABILITY FINANCIAL SHAREHOLDERS ACTIVITIES ACHIEVEMENTS STRUCTURE REMUNERATION ▪ Well on track on ▪ Terna confirmed as ▪ ESG-linked ▪ 20.83 € cents/share construction activities Italian and global Revolving Credit paid in June as of sustainability
Slide 5: Demand Evolution – Last months
Highlights Demand Evolution – Last 12 months DEMAND AS REPORTED (TWh) 1H23 1H22 Δ% 150.5 159.0 -5.3% TWh Monthly energy demand 34 Previous Year 32 31.1 30 28 26 26.0 26.0 26.2 26.2 25.4 24 24.7 25.0 25.0 25.1 24.3 22 23.4 Jul Jul Aug Aug Sep Sep Oct Oct Nov Nov Dec Dec Jan Jan Feb Feb Mar Mar Apr Ap
Slide 6: 1H 2023 Key Numbers
Highlights 1H 2023 Key Numbers 1H 2023 1H 2022 ∆% Actual Actual €mn €mn Revenues 1,485 1,331 +12% EBITDA 1,019 947 +8% Group Net Income1 411 398 +3% Capex 831 661 +26% FY 2022 Net Debt 9,458 8,576 Record level on Capex and P&L figures 1. Attributable to Terna 6
Slide 7: 1H 2023 Results
1H 2023 Results ee
Slide 8: Revenues
1H 2023 Results Revenues +155 +11.6% 45 1,485 110 1,331 222 177 1,263 1,154 1H22 ∆ ∆ 1H23 Regulated Activities1 Regulated Non Regulated Non Regulated Act. Activities 1 Activities Double digit increase in Revenues Note: figures may not add up due to rounding 8 1. Including IFRIC12
Slide 9: Revenues Analysis
1H 2023 Results Revenues Analysis REGULATED NON REGULATED €mn €mn +110 +9.5% 1,154 1,263 +45 92 14 5 27 +25.3% 23 32 45 222 18 177 1,113 Transmission & Dispatching 1,204 222 Other 177 IFRIC12 1H22 ∆ ∆ ∆ 1H23 1H22 ∆ 1H23 Transmission & Other IFRIC12 Non Regulated Dispatching Activities Regulated and
Slide 10: Opex
1H 2023 Results Opex €mn +82 +21.4% 466 384 41 -1 2 43 3 191 150 274 231 Regulated Activities1 Non Regulated Act. 1H22 ∆ ∆ ∆ 1H23 International Act. Regulated Non Regulated International Activities¹ Activities Activities Operating costs evolution reflecting organic activities increase Note: figures
Slide 11: EBITDA
1H 2023 Results EBITDA GROUP REGULATED €mn €mn 67 +72 +7.6% 923 990 1H22 ∆ 1H23 NON REGULATED AND INTERNATIONAL 947 1,019 €mn 5 24 30 1H22 1H23 1H22 ∆ 1H23 8% EBITDA Growth Note: figures may not add up due to rounding 11
Slide 12: From EBITDA to Net Income
1H 2023 Results From EBITDA to Net Income €mn 380 +3.3% YoY 1,019 59 169 639 3 -4 411 398 EBITDA D&A EBIT Net Taxes (Profit)/Loss Minority Group Group Financial from Interest Net Income 1 Net Income 1 Expenses discontinued 1H22 operation Robust P&L results Note: figures may not add up due to roundin
Slide 13: Capex
1H 2023 Results Capex TOTAL CAPEX REGULATED CAPEX €mn €mn 831 661 54 31 38% Development 777 777 50% Defence Asset Renewal & Efficiency 629 12% 1H22 1H23 1 Regulated Non Regulated and Other +26% YoY capex acceleration Note: figures may not add up due to rounding 1. Of which about € 10mn of Capitalize
Slide 14: Cash Flow & Net Debt Evolution
1H 2023 Results Cash Flow & Net Debt Evolution €mn +882 9,458 450 8,576 831 750 351 1 Dec.31, Operating Δ WC & Other Capex Dividends,Equity Jun.30, 2022 Cash Flow & 2023 Others 2 Net Debt evolution mainly driven by investment activities 1. Including Other Fixed Assets Changes Note: figures may not a
Slide 15: Net Debt Evolution & Financial Structure
1H 2023 Results Net Debt Evolution & Financial Structure GROSS DEBT BREAKDOWN KEY RATIOS Fixed/Floating Ratio Terna SpA Bonds 12% EIB ~ 89% Fixed Banks Calculated on Gross Debt 24% ~12€bn 64% Maturity ~ 5 years Solid and diversified financial structure 15
Slide 16: Closing Remarks
Closing Remarks wa Terna 7a Driving Energy
Slide 17: Sustainability as a growth driver
Closing Remarks as a growth driver Driving the energy transition Sustainability Maintain low risk profile Value creation for all stakeholders Focus on execution 17
Slide 18: Annexes
Annexes Terna Driving Energy Za wa
Slide 19: Consolidated Income Statement
Annexes Consolidated Income Statement1 € mn 1H23 1H22 Δmn Δ% Total Revenue 1,485 1,331 155 11.6% Regulated Activities 1,263 1,154 110 9.5% Transmission 1,043 1,000 43 4.3% Dispatching 162 113 49 43.0% Other² 32 18 14 74.3% IFRIC12 27 23 5 20.0% Non Regulated Activities 222 177 45 25.3% Total Costs 4
Slide 20: Consolidated Balance Sheet
Annexes Consolidated Balance Sheet € mn 1H23 FY22 Δmn PP&E 16,623 16,201 422 Intangible Asset 791 776 15 Financial Inv. and Other 507 509 -2 Total Fixed Assets 17,921 17,485 436 Net WC -2,357 -2,733 376 Funds -40 -68 29 Net Capital Invested 15,524 14,684 840 Net Assets Held for Sale 76 61 15 Total N
Slide 21: Consolidated Cash Flow
Annexes Consolidated Cash Flow € mn 1H23 1H22 Total Net Income 408 401 D&A 1 371 338 Net Change in Funds -29 2 Operating Cash Flow 750 740 Δ Working Capital & Other 2 -351 249 Cash Flow from Operating Activities 398 989 Capital Expenditures -831 -661 Free Cash Flow to Equity -432 328 Net Assets Held
Slide 22: 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 23: Notes
Notes 23 Terna Driving Energy Za ws
Slide 24: Notes
Notes 24 Terna Driving Energy Za ws
Slide 25: investor.relations@terna.it www.terna.it
investor.relations@terna.it www.terna.it 25
Slide 26: aa lerna
Ly) aa lerna AS Driving Energy