Slide 1: 1Q 2023 Consolidated Results
1Q 2023 Consolidated Results Rome, May 5th 2023
Slide 2: Agenda
Agenda Highlights 3 1Q 2023 Results 7 Annexes 16 2
Slide 3: Highlights
Highlights ee
Slide 4: Highlights: Focus on execution
Highlights Latest main achievements Significant improvement in all economic and financial indicators Tyrrhenian Link: second and third tranches of the €1.9 billion loan provided by EIB €750 million bond issue successfully launched Focus on execution 4
Slide 5: Guaranteeing a safe management of the electricity system
Highlights Demand Evolution – Last 12 months DEMAND AS REPORTED (TWh) 1Q23 1Q22 Δ% 77.4 80.6 -4.0% TWh Monthly energy demand 34 Previous Year 32 31.1 30 28.0 28 25.9 26 24.4 26.0 26.0 26.2 26.2 24 24.7 25.0 25.0 25.1 22 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Slide 6: Solid P&L results and strong capex delivery
Highlights 1Q 2023 Key Numbers 1Q 2023 1Q 2022 ∆% Actual Actual €mn €mn Revenues 713 644 +11% EBITDA 500 461 +8% Group Net Income1 200 192 +4% Capex 315 293 +7% FY 2022 Net Debt 8,847 8,576 Solid P&L results and strong capex delivery 1. Attributable to Terna 6
Slide 7: 1Q 2023 Results
1Q 2023 Results ee
Slide 8: Double digit increase in Revenues
1Q 2023 Results Revenues €mn +68 +10.6% 713 644 52 16 99 82 614 562 1Q22 ∆ ∆ 1Q23 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 driven by Regulated Activities increase
1Q 2023 Results Revenues Analysis REGULATED NON REGULATED €mn €mn +52 +9.2% 562 614 +16 7 +19.7% 45 0 10 10 99 15 16 9 82 543 Transmission & Dispatching 588 99 Other 82 IFRIC12 1Q22 ∆ ∆ ∆ 1Q23 1Q22 ∆ 1Q23 Transmission & Other IFRIC12 Non Regulated Dispatching Activities Revenues driven by Regulated
Slide 10: Opex dynamic driven by organic activities increase
1Q 2023 Results Opex €mn +29 +16.1% 213 183 15 0 1 14 1 83 68 114 128 Regulated Activities1 Non Regulated Act. 1Q22 ∆ ∆ ∆ 1Q23 International Act. Regulated Non Regulated International Activities¹ Activities Activities Opex dynamic driven by organic activities increase Note: figures may not add up du
Slide 11: EBITDA growth driven by Regulated Activities
1Q 2023 Results EBITDA GROUP REGULATED €mn €mn 38 +39 +8.4% 448 486 1Q22 ∆ 1Q23 NON REGULATED AND INTERNATIONAL €mn 461 500 1 13 14 1Q22 1Q23 1Q22 ∆ 1Q23 EBITDA growth driven by Regulated Activities Note: figures may not add up due to rounding 11
Slide 12: +4% Net Income increase
1Q 2023 Results From EBITDA to Net Income €mn +4.4% YoY 187 500 32 81 313 0 -1 200 192 EBITDA D&A EBIT Net Taxes (Profit)/Loss Minority Group Group Financial from Interest Net Income 1 Net Income 1 Expenses discontinued 1Q22 operation +4% Net Income increase Note: figures may not add up due to round
Slide 13: +7% YoY capex acceleration
1Q 2023 Results Capex TOTAL CAPEX REGULATED CAPEX €mn €mn 293 315 13 27 Development 44% 43% 288 Defence 281 288 Asset Renewal & Efficiency 13% 1Q22 1Q23 1 Regulated Non Regulated and Other +7% YoY capex acceleration Note: figures may not add up due to rounding 1. Of which about € 4mn of Capitalized
Slide 14: Net Debt evolution under control
1Q 2023 Results Cash Flow & Net Debt Evolution €mn +271 8,847 8,576 15 315 368 309 1 Dec.31, Operating Δ WC & Other Capex Dividends,Equity Mar.31, 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 2. I
Slide 15: Net Debt Evolution & Financial Structure
1Q 2023 Results Net Debt Evolution & Financial Structure GROSS DEBT BREAKDOWN KEY RATIOS Fixed/Floating Ratio Terna SpA Bonds 15% EIB ~ 87% Fixed Banks Calculated on Gross Debt 23% ~11€bn 62% Maturity ~ 5 years Maintain a solid financial structure 15
Slide 16: Annexes
Annexes Terna Driving Energy Za wa
Slide 17: Consolidated Income Statement
Annexes Consolidated Income Statement1 € mn 1Q23 1Q22 Δmn Δ% Total Revenue 713 644 68 10.6% Regulated Activities 614 562 52 9.2% Transmission 508 485 23 4.8% Dispatching 80 58 22 37.0% Other² 15 9 7 75.0% IFRIC12 10 10 0 4.1% Non Regulated Activities 99 82 16 19.7% Total Costs 213 183 29 16.1% Regul
Slide 18: Consolidated Balance Sheet
Annexes Consolidated Balance Sheet € mn 1Q23 FY22 Δmn PP&E 16,299 16,201 98 Intangible Asset 777 776 1 Financial Inv. and Other 517 509 8 Total Fixed Assets 17,593 17,485 107 Net WC -2,399 -2,733 334 Funds -54 -68 14 Net Capital Invested 15,139 14,684 455 Net Assets Held for Sale 65 61 4 Total Net C
Slide 19: Consolidated Cash Flow
Annexes Consolidated Cash Flow € mn 1Q23 1Q22 Total Net Income 200 192 D&A 1 183 167 Net Change in Funds -14 12 Operating Cash Flow 368 371 Δ Working Capital & Other 2 -309 151 Cash Flow from Operating Activities 59 522 Capital Expenditures -315 -293 Free Cash Flow to Equity -256 228 Net Assets Held
Slide 20: 2023 Total Grid Fee
Annexes 2023 Total Grid Fee* 2022 2023 Transmission Transmission 1.91€bn 2.02€bn Resolution 622/2021 Resolution 719/2022 37% 45% + + Dispatching Dispatching 0.11€bn 0.12€bn Resolution 629/2021 18% Resolution 738/2022 = = RAB remuneration 2.02€bn 2.14€bn Allowed Opex Allowed D&A *ARERA Resolutions an
Slide 21: 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 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