Slide 1: 1H 2022 Consolidated Results
1H 2022 Consolidated Results Rome, July 28th 2022
Slide 2: Agenda
Agenda Highlights 3 1H 2022 Results 7 Closing Remarks 16 Annexes 19 2
Slide 3: Highlights
Highlights 3
Slide 4: Institutional role for the Country
Highlights Main achievements SHAREHOLDERS STRATEGY INTERNATIONAL PEOPLE ESG REMUNERATION ▪ 2021-2025 Industrial ▪ Latin America ▪ Tyrrhenian Lab ▪ Inclusion in the main ▪ 19.29 € cents/share, Plan Update deconsolidation project sustainability indexes paid in June as 2021 process in line with Final D
Slide 5: Guaranteeing security of supply
Highlights Demand Evolution – Last 12 months DEMAND AS REPORTED (TWh) 1H22 1H21 Δ% 158.0 153.8 2.7% TWh Monthly energy demand 1H 2022 34 Previous Year 32 30.4 30 27.4 27.5 27.3 27.9 28 26.6 27.0 26.4 26.4 25.5 25.7 26 24.1 24 22 Jul Jul Aug Aug Sep Sep Oct Oct Nov Nov Dec Dec Jan Feb Feb Mar Mar Apr
Slide 6: Solid set of results and guaranteed growth
Highlights 1H 2022 Key Numbers 1H 2021 1H 2022 ∆ vs 1H 2021 restated Actual Restated Actual €mn €mn €mn Revenues 1,259 1,256 1,331 +6% EBITDA 910 910 947 +4% Group Net Income1 385 385 398 +4% Capex 602 600 661 +10% FY 2021 1H 2022 Net Debt 10,003 8,994 Solid set of results and guaranteed growth 1. A
Slide 7: 1H 2022 Results
1H 2022 Results ee
Slide 8: Regulated and Non Regulated revenues as growth driver
1H 2022 Results Revenues €mn +75 +5.9% 1,256 1,331 60 15 -0.3 0.0 0.3 177 163 1,093 1,154 1H21 ∆ ∆ ∆ 1H22 Regulated Non Regulated International Regulated Activities1 Activities 1 Activities Activities Non Regulated Act. International Act. Regulated and Non Regulated revenues as growth driver Note: f
Slide 9: Higher contribution from Regulated activities
1H 2022 Results Revenues Analysis REGULATED NON REGULATED AND INTERNATIONAL €mn €mn +60 +5.5% 1,093 1,154 +14 15 59 -6 7 23 +8.8% 25 18 15 -0.3 177 163 0.3 0.0 1,054 1,113 Transmission & Dispatching 163 177 Other Non Regulated Act. IFRIC12 International Act. 1H21 ∆ ∆ ∆ 1H22 1H21 ∆ ∆ 1H22 Transmissio
Slide 10: Operating costs evolution driven by skills insourcing
1H 2022 Results Opex €mn +38 +10.8% 384 346 19 -0.5 3 19 4 150 131 212 231 Regulated Activities1 Non Regulated Act. 1H21 ∆ ∆ ∆ 1H22 International Act. Regulated Non Regulated International Activities¹1 Activities Activities Operating costs evolution driven by skills insourcing Note: figures may not
Slide 11: EBITDA growth driven by Regulated activities
1H 2022 Results EBITDA GROUP REGULATED €mn €mn 41 +37 +4.1% 882 923 1H21 ∆ 1H22 NON REGULATED AND INTERNATIONAL 910 947 €mn -4 28 24 1H21 1H22 1H21 ∆ 1H22 EBITDA growth driven by Regulated activities Note: figures may not add up due to rounding 11
Slide 12: +4% increase in Group Net Income
1H 2022 Results From EBITDA to Net Income €mn 340 +4% YoY 947 36 161 10 3 607 398 385 EBITDA D&A EBIT Net Taxes (Profit)/Loss Minority Group Group Financial from Interest Net Income1 Net Income Expenses discontinued 1H211 operation +4% increase in Group Net Income Note: figures may not add up due to
Slide 13: Double-digit capex acceleration
1H 2022 Results Capex TOTAL CAPEX REGULATED CAPEX €mn €mn 661 600 31 28 37% Development Development 47% 629 Defence Defence Asset Asset Renewal Renewal & Efficiency & Efficiency 571 629 16% 1H21 1H22 Regulated Non Regulated and Other 1 Double-digit capex acceleration Note: figures may not add up due
Slide 14: Strong operating cash flow to cover investments
1H 2022 Results Cash Flow & Net Debt Evolution €mn -1.009 10.003 740 249 8.994 661 680 Dec.31, Operating Δ WC & Other 1 Capex Dividends,Equity Jun.30, 2021 Cash Flow & 2022 Others 2 Strong operating cash flow to cover investments 1. Including Other Fixed Assets Changes Note: figures may not add up d
Slide 15: Maintaining a solid and diversified financial structure
1H 2022 Results Net Debt Evolution & Financial Structure 1 GROSS DEBT BREAKDOWN KEY RATIOS1 Fixed/Floating Ratio Terna SpA Bonds 18% EIB ~ 86% Fixed Banks Calculated on Gross Debt 19% ~11€bn 2 63% Maturity ~ 5 years Maintaining a solid and diversified financial structure 1. Percentages and key ratio
Slide 16: Closing Remarks
Closing Remarks wa Terna 7a Driving Energy
Slide 17: Electricity demand recovery in a challenging scenario
Closing remarks Electricity demand recovery in a challenging scenario Benefits for the system and output-based incentives All targets confirmed 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 1H22 1H21 Δmn Δ% Total Revenue 1,331 1,256 75 5.9% Regulated Activities 1,154 1,093 60 5.5% Transmission 1,000 998 2 0.2% Dispatching 113 55 58 103.8% Other² 18 25 -6 -25.3% IFRIC12 23 15 7 48.0% Non Regulated Activities 177 163 15 9.0% International Activ
Slide 21: Consolidated Income Statement (restated)
Annexes Consolidated Income Statement1 € mn 1H 21 Reported Restatement 1H 21 Restated Δ% Total Revenue 1,259 -2 1,256 -0.2% Regulated Activities 1,093 0 1,093 0.0% Transmission 998 0 998 0.0% Dispatching 55 0 55 0.0% Other² 25 0 25 0.0% IFRIC12 15 0 15 -0.1% Non Regulated Activities 163 0 163 0.0% I
Slide 22: Consolidated Balance Sheet
Annexes Consolidated Balance Sheet € mn Jun. 30,2022 Dec. 31,2021 Δmn PP&E 15,553 15,317 237 Intangible Asset 701 657 44 Financial Inv. and Other 433 380 53 Total Fixed Assets 16,687 16,353 334 Net WC -1,967 -1,707 -260 Funds -50 -48 -2 Net Capital Invested 14,670 14,598 72 Net Assets Held for Sale
Slide 23: Consolidated Cash Flow
Annexes Consolidated Cash Flow € mn 1H22 1H21 Total Net Income 401 386 D&A¹ 338 317 Net Change in Funds 2 -31 Operating Cash Flow 740 672 Δ Working Capital & Other² 249 -306 Cash Flow from Operating Activities 989 366 Capital Expenditures -661 -602 Free Cash Flow to Equity 328 -236 Net Assets Held f
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: Terna Driving Energy
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