4. 4
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
26.9
26.3 26.5
28.4
25.5
26.4
24.0
25.2
27.8
31.4
26.5 26.7
20
22
24
26
28
30
32
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Monthy energy demand
Previous Year
Demand Evolution – Last 12 months
DEMAND AS REPORTED (TWh)
Highlights (1/2)
Note: 2017 final figures, 2018 and 2019 preliminary figures
Increasing contribution from wind and PV production
9M19 data:
▪ National Demand at 242 TWh, o/w 36% covered by RES
▪ Net Total Production at 216 TWh
Wind increased by 14%
PV increased by 6%
YoY
Change
9M2019
Δ %
-0.1%
9M19 9M18
241.9 242.2
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2.1% -1.3% -1.5% 4.4% -2.2% -5.0% -0.6% -2.9% 2.9% 3.1% -0.2% -1.2%
5. 5
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
Strong capex acceleration confirmed
9M 2019 Key Figures
1. 9M18 revenues reclassified in accordance with new IFRS. No impact at EBITDA level
2. Attributable to Terna
9M 2018€mn
Revenues
EBITDA
Group Net Income2
Capex
Δ vs 9M189M 2019
1,666 1,6051
1,278 1,230
553 542
670 561
Highlights (2/2)
+4%
+4%
+2%
+19%
8,250 7,899Net Debt
FY 20189M 2019
7. 7
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
1,605 1,666
1,481 1,518
118 130
6
1737 12 11
9M18 ∆
Regulated
Activities
∆
Non Regulated
Activities
∆
International
Activities
9M19
Revenues
Note: figures may not add up due to rounding
1. Including IFRIC12
2. Construction margin, including IFRIC12
Insourcing attività di O&M Rete FS
Capex execution as a driver of our domestic growth
1 2
€mn
+60
+3.8%
Regulated Activities1
Non Regulated Act.
International Act.2
9M 2019 results
8. 8
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
118 130
6
17124 12
11 148
9M18 ∆
Non Regulated
Activities
∆
International
Activities
9M19
1,451 1,480
17
28 10 -1
27
12 11
1,481 1,518
9M18 ∆
Transmission &
Dispatching
∆
Other
∆
IFRIC12
9M19
Revenues Analysis
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+37
+2.5% +23
+18.8%
Tamini’s turnaround ongoing
Transmission & Dispatching
Other
IFRIC 12
Note: figures may not add up due to rounding
9M 2019 results
Non Regulated Act.
International Act.
9. 9
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
375 387
288 285
81 94
6
8-3 13 2
9M18 ∆
Regulated
Activities
∆
Non Regulated
Activities
∆
International
Activities
9M19
1
+12
+3.3%
€mn
Opex
Note: figures may not add up due to rounding
1. Including IFRIC12
Insourcing attività di O&M Rete FSEfficiency program well on track
9M 2019 results
Regulated Activities1
Non Regulated Act.
International Act.
10. 10
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
81
94
6
13
2
887
103
9M18 ∆
Non Regulated
Activities
∆
International
Activities
9M19
156 160
120
4 -6 -1
114
12 11
288 285
9M18 ∆
Labour
Costs
∆
External
Costs
& Other
∆
IFRIC12
9M19
Opex Analysis
Insourcing attività di O&M Rete FSSkills insourcing as a driver of improved performance
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
-3
-1.1%
+15
+17.5%
Labour Costs
External Costs & Other
IFRIC 12
Note: figures may not add up due to rounding
9M 2019 results
Non Regulated Act.
International Act.
11. 11
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
1,193 1,233
40
9M18 ∆ 9M19
1,230 1,278
9M18 9M19
EBITDA
Insourcing attività di O&M Rete FSRobust EBITDA improvement
€mn
TOTAL EBITDA
€mn
REGULATED
€mn
NON REGULATED AND INTERNATIONAL
+48
+3.9%
Note: figures may not add up due to rounding
9M 2019 results
37 45
8
9M18 ∆ 9M19
12. 12
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
1,278
842
553 542
436
61
227
EBITDA D&A EBIT Net
Financial
Expenses
Taxes Group
Net Income
Group
Net Income
9M18
From EBITDA to Net Income
Note: figures may not add up due to rounding
1. Attributable to Terna. Excluding 2.1 €mn of Minorities in 9M19 and 3.5 €mn in 9M18
Solid value creation for our shareholders
1
€mn
1
+2% YoY
9M 2019 results
13. 13
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
595
7%
93%
Incentivized Investments (5.6% +1%) Other Regulated (5.6%)
68 40
434 554
59
75561
670
9M18 9M19
Incentivized Investments Other Regulated Other
Capex
Insourcing attività di O&M Rete FSStrong Group’s commitment to serve Italian energy transition
TOTAL CAPEX
€mn
21
REGULATED CAPEX
Note: figures may not add up due to rounding
1. I-NPR1+O-NPR1 in line with ARERA Resolution n. 579/17
2. Of which about 9 €mn of Capitalized Financial Charges in 9M19 and 12 €mn in 9M18
9M 2019 results
595
€mn
14. 14
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
7,899
8,250
886
85
670
481
Dec.31,
2018
Operating
Cash Flow
Δ WC & Other Capex Dividends
&
Equity
Sep.30,
2019
Note: figures may not add up due to rounding
1. Including Other Fixed Assets Changes
2. Including Cash Flow Hedge reserve and other
Cash Flow & Net Debt Evolution
Solid operating cash flow generation
€mn
2
Free Cash Flow to Equity +131
+350
1
9M 2019 results
15. 15
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
81%
17%
2%
Terna SpA Bonds
EIB
Banks
Net Debt Evolution & Financial Structure
1. Percentages and key ratios calculated on Gross Debt nominal value
2. IAS value
Resilient financial structure
GROSS DEBT BREAKDOWN KEY RATIOS
1 1
Fixed/Floating Ratio
Calculated on Gross Debt
82% Fixed
Duration
4.9 years
10.6€bn2
9M 2019 results
16. 16
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
Closing Remarks
Strong capex acceleration confirmed
Robust EBITDA improvement
Capex execution as a driver of our domestic growth
Plan execution well on track
Solid value creation for our shareholders
18. 18
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
€ mn 9M19 9M18 Δmn Δ%
Total Revenue 1,666 1,605 60 3.8%
Regulated Activities 1,518 1,481 37 2.5%
Transmission 1,395 1,348 47 3.4%
Dispatching 85 103 -18 -17.7%
Other 27 17 10 57.5%
IFRIC12 11 12 -1 -9.2%
Non Regulated Activities 130 118 12 10.3%
International Activities 17 6 11 185.0%
Total Costs 387 375 12 3.3%
Regulated Activities 285 288 -3 -1.1%
Labour Costs 160 156 4 2.7%
External Costs 103 106 -2 -2.1%
Other 10 14 -4 -28.0%
IFRIC12 11 12 -1 -9.2%
Non Regulated Activities 94 81 13 16.1%
International Activities 8 6 2 36.7%
EBITDA 1,278 1,230 48 3.9%
D&A 436 400 36 9.0%
EBIT 842 830 12 1.5%
Net Financial Charges 61 67 -6 -8.5%
Pre Tax Profit 781 763 18 2.3%
Taxes 227 218 8 3.8%
Tax Rate (%) 29.0% 28.6% +0.4 pp
Total Net Income 555 545 10 1.8%
Minority Interest 2 4 -1 -40.0%
Group Net Income 553 542 11 2.0%
1. Managerial Accounting
2. 9M18 reclassified in accordance with new IFRS. No impact at EBITDA level
3. Including Quality of Service
Consolidated Income Statement1
Annex
3
3
2
19. 19
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
Consolidated Balance Sheet
Annex
€ mn
PP&E
Intangible Asset
Financial Inv. and Other
Total Fixed Assets
Net WC
Funds
Net Capital Invested
Financed by:
Consolidated Net Debt
Total Shareholder's Equity
Total
D/E Ratio
D/D+E Ratio
Number of Shares (mn)
Sep. 30,2019 Dec. 31,2018 Δmn
13,457 13,244 212
521 519 2
345 320 25
14,323 14,084 239
-1,739 -1,823 83
-206 -308 101
12,377 11,954 423
8,250 7,899 350
4,127 4,054 73
12,377 11,954 423
2.0 1.9
0.7 0.7
2,010 2,010
20. 20
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
€ mn 9M19 9M18
Total Net Income 555 545
D&A 433 397
Net Change in Funds -101 -38
Operating Cash Flow 886 904
Δ Working Capital & Other -85 169
Cash Flow from Operating Activities 801 1,073
Capital Expenditures -670 -561
Free Cash Flow to Equity 131 512
Dividends & Equity -481 -307
Change in Net Cash (Debt) -350 205
1. Net of assets’ disposal
2. Including Other Fixed Assets Changes
3. Including Cash Flow Hedge accruals and other
Consolidated Cash Flow
Annex
1
2
3
21. 21
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
€ mn 9M19 9M18 Δ mn Δ%
Incentivized Investment 40 68 -27 -40%
Other Reguleted 554 434 120 28%
Regulated Capex 595 502 93 18%
Other 75 59 16 27%
Total Group Capex 670 561 109 19%
Capex
Annex
1. I-NPR1+O-NPR1 in line with ARERA Resolution n. 579/17
2. Of which about 9 €mn of Capitalized Financial Charges in 9M19 and 12 €mn in 9M18
1
2
22. 22
9M19 CONSOLIDATED RESULTS NOVEMBER 13th 2019
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