4. 4
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
26.3
26.6
26.9
27.2
26.1
27.8
24.1
26.0
27.0
30.4
26.5
27.0
23
25
27
29
31
33
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: 2016 and 2017 final figures. 2018 preliminary figures
Increasing contribution from renewable sources
9M18 data:
▪ National Demand at 242 TWh
• o/w 36% covered by RES vs 34% in 9M17
▪ Net Total Production at 210 TWh
• Hydro increased by 24%
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
0.9% 1.5% 1.7% -2.5% 3.5% 3.9% 0.7% 0.1% -3.5% 1.3% -1.1% 3.6%
Δ %
0.6%
9M18 9M17
242.2 240.7
YoY
Change
5. 5
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
Solid results confirm FY guidance
9M 2018 Key Numbers
1. Directly including the margin of the assets in concession implemented abroad
2. Attributable to Terna
3. Ex dividend date: November 19th 2018. Payment date: November 21st 2018
9M 2017€mn
Revenues1 +3%
EBITDA +2%
Group Net Income2 +2%
Total Group Capex +3%
9M 2018 FY 2017
Net Debt 7,592 7,796
Δ vs 9M179M 2018
1,625 1,570
1,230 1,207
542 529
561 545
Highlights (2/2)
7.87€cents/share
3
2018 Interim
Dividend
6. 6
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
1,570 1,625
1,458 1,481
46 59
66 801 623 13 14 5
9M17 ∆
Regulated
Activities
∆
Non Regulated
Activities
∆
Tamini
∆
International
Activities
9M18
Revenues
9M 2018 results
Note: figures may not add up due to rounding
1. Including IFRIC12
2. Construction margin, including IFRIC12
Insourcing attività di O&M Rete FS
Solid growth in all business lines
1 2
€mn
+26mn
Non Regulated Activities
+55
+3.5%
Regulated Activities1
Non Regulated Act.
Tamini
International Act.2
1,625
7. 7
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
1,347 1,348
85
1 18 1 2
103
16 17
10 12
1,458 1,481
9M17 ∆
Transmission
∆
Dispatching
∆
Other
∆
IFRIC12
9M18
46 59
66
13
14
80
112
138
9M17 ∆
Non Regulated
Activities
∆
Tamini
9M18
Revenues Analysis
9M 2018 results
€mn
REGULATED ACTIVITIES
€mn
NON REGULATED ACTIVITIES
+23
+1.6%
+26
+23.5%
Higher contribution from Regulated and Non Regulated Activities
Transmission
Other
Dispatching
IFRIC 12 Tamini
Non Regulated Act.
Note: figures may not add up due to rounding
8. 8
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
363 395
272 288
16
22
71
79
4
616 5 8 2
9M17 ∆
Regulated
Activities
∆
Non Regulated
Activities
∆
Tamini
∆
International
Activities
9M18
1
+31
+8.7%
€mn
Non Regulated Activities
Opex
9M 2018 results
Note: figures may not add up due to rounding
1. Including IFRIC12
Insourcing attività di O&M Rete FSOpex evolution driven by Regulated and Non Regulated growth
Regulated Activities1
Non Regulated Act.
Tamini
International Act.
9. 9
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
16 22
71
5
8
79
88
101
9M17 ∆
Non
Regulated
Activities
∆
Tamini
9M18
153 156
109
3
11 2
120
10
12
272 288
9M17 ∆
Labour
Costs
∆
External
Costs
& Other
∆
IFRIC12
9M18
Opex Analysis
9M 2018 results
Insourcing attività di O&M Rete FS
Higher volumes of activities
and increasing effort on maintenance programs
€mn
REGULATED ACTIVITIES
€mn
NON REGULATED ACTIVITIES
+16
+5.8%
+13
+15.3%
Labour Costs
External Costs & Other
IFRIC 12
Tamini
Non Regulated Act.
Note: figures may not add up due to rounding
10. 10
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
1,207 1,230
9M17 9M18
1,186 1,193
7
9M17 ∆ 9M18
EBITDA
9M 2018 results
Insourcing attività di O&M Rete FS2% growth at EBITDA level
€mn
TOTAL EBITDA
€mn
REGULATED ACTIVITIES
€mn
NON REGULATED ACTIVITIES
+23
+1.9%
Note: figures may not add up due to rounding
24
37
13
9M17 ∆ 9M18
11. 11
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
1,230
830
542 529
400
67
218
EBITDA D&A EBIT Net
Financial
Expenses
Taxes Group
Net Income
Group
Net Income
9M17
From EBITDA to Net Income
Note: figures may not add up due to rounding
1. Attributable to Terna. Excluding 3.5 €mn of Minorities in 9M18.
9M 2018 results
2% growth at Net Income level
1
€mn
1
+2% YoY
12. 12
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
14%
86%
Incentivized Investments
Other Regulated
72 68
435 410
39 84
545 561
9M17 9M18
Incentivized Investments Other Regulated Other
Capex
9M 2018 results
Insourcing attività di O&M Rete FS
2018 Capex well on track
TOTAL CAPEX
€mn
21
REGULATED CAPEX
478€mn
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 12 €mn of Capitalized Financial Charges in 9M18
13. 13
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
7,796
7,592
904
169
561
307
Dec.31,
2017
Operating
Cash Flow
Δ WC & Other Capex Dividends
&
Equity
Sep. 30,
2018
9M 2018 results
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
900 €mn of Operating Cash Flow
€mn
2
Free Cash Flow to Equity +512
-205
1
14. 14
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
75%
24%
1%
Terna SpA Bonds
EIB
Banks
9M 2018 results
Net Debt Evolution & Financial Structure
1. Percentages and key ratios calculated on Gross Debt nominal value
2. IAS value
Maintaining a solid balance sheet
GROSS DEBT BREAKDOWN KEY RATIOS
1 1
Fixed/Floating Ratio
Calculated on Gross Debt
100% Fixed
Maturity
5.4 years
9.6 €bn
2
18. 18
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
€ mn 1Q17 2Q17 3Q17 4Q17 FY17
Total Revenue 524 522 525 592 2,163
Regulated Activities 490 477 490 510 1,967
Transmission 451 444 453 457 1,804
Dispatching 29 27 29 27 112
Other 8 4 4 15 31
IFRIC12 2 3 4 11 21
Non Regulated Act. 34 44 34 77 189
International Activities 0 0 1 5 6
Total Costs 121 130 113 196 559
Regulated Activities 93 97 82 154 426
Labour Costs 53 54 46 65 218
External Costs 31 35 30 59 155
Other 7 5 1 19 32
IFRIC12 2 3 4 11 21
Non Regulated Act. 27 32 29 39 127
International Activities 1 1 2 3 7
EBITDA 403 392 412 397 1,604
D&A 130 131 129 137 527
EBIT 273 261 283 260 1,077
Net Financial Charges 21 19 29 21 89
Pre Tax Profit 252 242 254 240 988
Taxes 74 70 78 72 294
Tax Rate (%) 29.2% 29.0% 30.6% 30.2% 29.8%
Total Net Income 179 172 177 167 694
Minority Interest -1 0 -1 8 6
Group Net Income 179 172 178 159 688
2017 Restated P&L Quarterly Figures1
Annex
1. Unaudited Managerial Accounting
2. Including Quality of Service
3. Construction margin, including IFRIC 12
2
2
3
19. 19
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
€ 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)
Consolidated Balance Sheet
Annex
Δmn
157
-8
64
213
-217
38
33
-205
238
33
Dec. 31,2017
12,753
506
208
13,466
-1,485
-356
11,625
7,796
3,829
11,625
2.0
0.7
2,010
Sep. 30,2018
12,910
497
272
13,679
-1,703
-318
11,658
7,592
4,067
11,658
1.9
0.7
2,010
20. 20
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
1. Net of assets’ disposal
2. Including Other Fixed Assets Changes
3. Including Cash Flow Hedge accruals and other
Consolidated Cash Flow
Annex
9M18
545
397
-38
904
169
1,073
-561
512
-307
205
€ mn
Total Net Income
D&A
Net Change in Funds
Operating Cash Flow
Δ Working Capital & Other
Cash Flow from Operating Activities
Capital Expenditures
Free Cash Flow to Equity
Dividends & Equity
Change in Net Cash (Debt)
1
2
3
21. 21
9M18 CONSOLIDATED RESULTS NOVEMBER 9th 2018
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