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9M14 CONSOLIDATED RESULTS NOVEMBER 12 th 2014 Investor Relations 9M14 Consolidated Results November 12 th , 2014 Matteo Del Fante Chief Executive Officer Pierpaolo Cristofori Chief Financial Officer
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9M 2014 Consolidated Results (12 novembre 2014)

Jul 02, 2015

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Investor Relations

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  • 1. 9M14 CONSOLIDATED RESULTSNOVEMBER 12th 2014Investor Relations19M14Consolidated ResultsNovember 12th, 2014Matteo Del Fante Chief Executive OfficerPierpaolo Cristofori Chief Financial Officer

2. 9M14 CONSOLIDATED RESULTSNOVEMBER 12th 2014Investor Relations215AgendaHighlights39M14 Results6Annexes 3. 9M14 CONSOLIDATED RESULTS NOVEMBER 12th 2014Investor Relations 3HighlightsStrategic UpdateITALIAN ELECTRICITY DEMANDYTD variation remains negative (-2.9%)More stable trend in the last two monthsCDPs stake in Terna transferred to CDP RetiRECENT NEWS-FLOW26.7 26.426.827.526.024.8 24.726.828.023.826.325.723252729Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctMontly Energy Demand (normalized)Prior YearNov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctYoY Chg% 0.2% -0.2% -2.2% -1.9% -2.7% -2.6% -2.0% -0.6% -2.7% -3.5% -0.2% -1.4%TWhYtD %-2.0%Jan-Oct 2013 Jan-Oct 2014266 261DEMAND ADJUSTED1 (TWh)NOTE: 2013 final figures, 2014 provisional figures (as of November 2014)1. For temperature and number of days 4. 9M14 CONSOLIDATED RESULTSNOVEMBER 12th 2014Investor Relations4HighlightsStrategic ApproachMaintaining a low risk profilePositioningConcrete OpportunitiesBusiness As UsualEfficiencyNew Strategic Plan 2015-20193Q144Q141Q15Identified Focus Areas on: Regulation Investments Non Traditional Activities Innovation 5. 9M14 CONSOLIDATED RESULTSNOVEMBER 12th 2014Investor Relations5HighlightsStrategic UpdateItalian Railways High Voltage Grid Greek TSO tender Industrial approach M&A to be value accretiveOPPORTUNITIES FOR EXTERNAL GROWTH 6. 9M14 CONSOLIDATED RESULTSNOVEMBER 12th 2014Investor Relations69M14 ResultsAt a GlancePROFIT & LOSSNet Debt6,688mnNET DEBT & CAPEXGroup Net Income+1.5%yoyTotal Group Capex652mnTotal Revenues+3.3%yoyat 1,448mnat 418mnEBITDA+0.2%yoyat 1,135mn 7. 9M14 CONSOLIDATED RESULTS NOVEMBER 12th 2014Investor Relations 71. Excluding Tamini2. Tamini1,340 1,342 1,342172 5 118391844 49889M13 TraditionalActivitiesNTA(LFL)IFRIC9M14(LFL)Perimeter9M14Traditional ActivitiesIFRIC12Non Traditional Activities9M14 ResultsRevenues1,401+47 1,4481,409KEY FIGURES TOTAL REVENUES EVOLUTIONTotal Revenues1,448mn+3.3%yoyTraditional Activities1,342mn+0.2% yoyNon Traditional Activities88mn mn 9M13 9M14 yoy %yoyTraditional Activities 1,340 1,342 2 0.2%Non Traditional Act. 44 88 44 99.1%IFRIC12 17 18 1 5.3%Total 1,401 1,448 47 3.3%mn1 2Traditional ActivitiesNon Traditional Act.IFRIC12 8. 9M14 CONSOLIDATED RESULTS NOVEMBER 12th 2014Investor Relations 844 495 88399M13 NTAs(LFL)9M14(LFL)Perimeter9M149M14 ResultsRevenues Analysis1,342mn+0.2% yoy1,242 1,23985-3 3 28814 169M13 TransmissionDispatchingOther9M14Transmission (Grid Fee)DispatchingOtherflat1,340 1,342+2+44 88mno/w Tamini 39mnmnmn112 3TRADITIONAL ACTIVITIESNON TRADITIONAL ACTIVITIES1. Quality of Service + Other Revenues2. Excluding Tamini3. TaminiNOTE: figures net of IFRIC12 9. 9M14 CONSOLIDATED RESULTS NOVEMBER 12th 2014Investor Relations 9239 243 243174 2 118381813 14529M13 TraditionalActivitiesNTA(LFL)IFRIC 129M14(LFL)Perimeter9M14Traditional ActivitiesIFRIC 12NTA9M14 ResultsCosts & EBITDA268+45 313275KEY FIGURES TOTAL COSTS EVOLUTIONTotal Costs313mn+17%yoy mn 9M13 9M14 yoy %yoyTraditional Activities 239 243 4 1.8%Non Traditional Act. 13 52 40 314.3%IFRIC12 17 18 1 5.3%Total 268 313 45 16.7%mn211. Excluding Tamini2. TaminiTraditional ActivitiesNon Traditional Act.IFRIC12 10. 9M14 CONSOLIDATED RESULTS NOVEMBER 12th 2014Investor Relations 109M14 ResultsFrom EBITDA to Net IncomeKEY FIGURES PROFIT & LOSS mn 9M13 9M14 %EBITDA 1,133 1,135 2 0.2%Ebitda % 80.9% 78.4% -2.5ppD&A 322 343 21 6.5%EBIT 811 791 -19 -2.4%Net Financial Expenses 71 100 29 40.8%PBT 740 692 -48 -6.5%Tax Rate 44.4% 39.6% -4.8ppTaxes 328 274 -54 -16.6%Group Net Income 412 418 6 1.5%Group EBITDA1,135mnGroup EBITDA %78.4%Group Net Income418mn+0.2%yoy+1.5%yoy1,135791 692418343100274EBITDA D&A EBIT NetFinancialExpensesPBT Taxes GroupNet Incomemn 11. 9M14 CONSOLIDATED RESULTS NOVEMBER 12th 2014Investor Relations 11Category (mn) 9M13 9M14 yoy % yoy+2% 360 254 -106 -29%+1.5% 217 220 3 1%Incentivized Capex 577 474 -103 -18%Base Return 149 148 -1 -1%Traditional Activities 726 621 -105 -14%Other1 32 31 -1Total Group Capex 758 652 -106 -14%24%35%41%Base Return+1.5%+2%9M14 ResultsCapex BreakdownKEY FIGURES TRADITIONAL CAPEX BREAKDOWN9M14 Total Capex652mn3Q14 Total Capex266mn621mn76%IncentivizedNOTE: Figures in accordance with resolution AEEG 40/20131. Capitalized Financial Charges + Non Traditional Capex 12. 9M14 CONSOLIDATED RESULTS NOVEMBER 12th 2014Investor Relations 126,625 6,688849102652100261Net Debt Evolution & Financial Structure1. Calculated on Net Debt2. Net Income + D&A + Net Financial Charges +/- Net Change in Funds (see Annex Consolidated Cash Flow for details)3. Including Other Fixed Assets Changes, Change in Capital & OtherDec.31,2013OperatingCashFlow2 WC&Other3Sep. 30,2014+639M14 ResultsCapex DividendsNetFinancialCharges66%20%14%Terna SpA BondsEIB LoansBanksKEY FIGURES NET DEBT EVOLUTIONNet Debt6,688mnFixed/floating ratio166/34mnFINANCIAL INDEBTENESS950 13. 9M14 CONSOLIDATED RESULTSNOVEMBER 12th 2014Investor Relations139M14 ResultsClosing Remarks1. Ex dividend date: November 24th 2014, Payment Date : November 26th 20147 cents1Interim Dividend2014 Outlook In line with 2013 Consistent with the Dividend Policy Resilient despite interim review 14. 9M14 CONSOLIDATED RESULTSNOVEMBER 12th 2014Investor Relations14THANK YOU.QUESTIONS?Matteo Del Fante Chief Executive Officer Pierpaolo Cristofori Director of Administration, Finance and Control 15. 9M14 CONSOLIDATED RESULTSNOVEMBER 12th 2014Investor Relations15Annexes 16. 9M14 CONSOLIDATED RESULTS NOVEMBER 12th 2014Investor Relations 1626.226.526.925.026.224.025.226.328.323.726.2 26.42325272931Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctMonthy energy demandPrior Year26.7 26.426.827.526.024.8 24.726.828.023.826.325.723252729Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctMontly Energy Demand (normalized)Prior YearAnnexElectricity Market Trends Last 12 MonthsTWhNov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctYoY Chg% 0.2% -0.2% -2.2% -1.9% -2.7% -2.6% -2.0% -0.6% -2.7% -3.5% -0.2% -1.4%Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctYoY Chg% -0.1% -0.5% -3.7% -4.0% -3.6% -2.7% -2.6% -0.1% -4.8% -5.9% 0.4% -1.4%TWh9M13 9M14 %239 232 -3.0%9M13 9M14 %240 235 -2.0%YtD %-2.9%Jan-Oct 2013 Jan-Oct 2014266 258YtD %-2.0%Jan-Oct 2013 Jan-Oct 2014266 261DEMAND AS REPORTED (TWh)NOTE: 2013 final figures, 2014 provisional figures (as of November 2014)1. For temperature and number of daysDEMAND ADJUSTED1 (TWh) 17. 9M14 CONSOLIDATED RESULTS NOVEMBER 12th 2014Investor Relations 17Consolidated Income Statement1Annex mn 9M13 9M14 mn %Transmission 1,242 1,239 -3 -0.2%Dispatching 85 88 3 3.4%Other 2 14 16 2 16.2%Traditional Activities 1,340 1,342 2 0.2%Non Traditional Act. 44 88 44 99.1%IFRIC12 17 18 1 5.3%Total Revenues 1,401 1,448 47 3.3%Labour Costs 133 147 14 10.5%Services 88 86 -2 -2.1%Other 18 10 -8 -44.3%Traditional Activities 239 243 4 1.8%Non Traditional Act. 13 52 40 314.3%IFRIC12 17 18 1 5.3%Total Costs 268 313 45 16.7%EBITDA 1,133 1,135 2 0.2%D&A 322 343 21 6.5%EBIT 811 791 -19 -2.4%Net Financial Charges 71 100 29 40.8%Pre Tax Profit 740 692 -48 -6.5%Taxes 328 274 -54 -16.6%Tax Rate (%) 44.4% 39.6%Group Net Income 412 418 6 1.5%NOTE: 2014 figures include Tamini1. Managerial Accounting2. Quality of Service + Other Revenues 18. 9M14 CONSOLIDATED RESULTSNOVEMBER 12th 2014Investor Relations18Group Costs BreakdownAnnexNOTE: 2014 figures include Tamini mn9M139M14mn% Labour Costs140 161 2215.7% Services83 90 78.7% Materials8 30 22284.6% Other21 14 -8-35.4% IFRIC1217 18 15.3% Total Costs268 313 4516.7% 19. 9M14 CONSOLIDATED RESULTSNOVEMBER 12th 2014Investor Relations19Quarterly AnalysisAnnexNOTE: 2014 figures include Tamini mn1Q131Q142Q132Q143Q133Q14Traditional Activities4564571431430-14544562Non Traditional Act.9178113423243713IFRIC 12540781560Operating Revenues47047884494722348249815Traditional Activities818108781-571809Non Traditional Act.43-14201652924IFRIC 12540781560Operating Expenses8988-198110128211534EBITDA381390935236311401382-18D&A1061137108122141091080EBIT2752773244241-3292274-18 Net Financial Charges 1831142533828367Pre Tax Profit257246-11219208-11264239-25Taxes116101-159678-1811695-21Group Net Income14214541221297148144-4Total Group Capex206164-42298222-7625426612Net Debt (end of period)5,9246,6296,5757,0836,3406,688 20. 9M14 CONSOLIDATED RESULTS NOVEMBER 12th 2014Investor Relations 20Consolidated Balance Sheet mn Dec. 31,2013 Sep. 30,2014 mnPP&E 10,120 10,458 338Intangible Asset 462 449 -13Financial Inv. and Other 83 85 2Total Fixed Assets 10,665 10,992 327Net WC -646 -751 -105Funds -453 -442 11Total Net Invested Capital 9,566 9,799 233Financed byConsolidated Net Debt 6,625 6,688 63Total Shareholder's Equity 2,941 3,110 170Total 9,566 9,799 233D/E Ratio 2.3 2.2D/D+E Ratio 0.69 0.68Number of Shares ('000) 2,010 2,010AnnexNOTE: 2014 figures include Tamini 21. 9M14 CONSOLIDATED RESULTS NOVEMBER 12th 2014Investor Relations 21 mn 9M13 9M14Net Income 412 418D&A 1 321 343Net Financial Charges 71 100Net Change in Funds -37 -11Operating Cash Flow 767 849Change in Working Capital -192 105Cash Flow from Operating Activities 575 954Capital Expenditures -758 -652Other Fixed Asset Changes -7 -17Free Cash Flow -190 285Dividends -261 -261Net Financial Charges -71 -100Change in Capital and Other 37 13Change in Net Cash (Debt) -485 -63Consolidated Cash FlowAnnexNOTE: 2014 figures include Tamini1. Net of assets disposal 22. 9M14 CONSOLIDATED RESULTSNOVEMBER 12th 2014Investor Relations22THIS 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 INFORMATIVE AND PROVISIONAL NATURE AND THE STATEMENTS CONTAINED HEREIN HAVE NOT BEEN INDEPENDENTLY VERIFIED. NEITHER THE COMPANY NOR ANY OF ITS REPRESENTATIVES SHALL ACCEPT ANY LIABILITY WHATSOEVER (WHETHER IN NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY FROM THE USE OF THIS DOCUMENT OR ITS CONTENTS OR OTHERWISE ARISING IN CONNECTION WITH THIS DOCUMENT OR ANY MATERIAL DISCUSSED DURING THE PRESENTATION.THIS DOCUMENT MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON. THE INFORMATION CONTAINED HEREIN AND OTHER MATERIAL DISCUSSED AT THE CONFERENCE CALL MAY INCLUDE FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT THE COMPANYS BELIEFS AND EXPECTATIONS. THESE STATEMENTS ARE BASED ON CURRENT PLANS, ESTIMATES, PROJECTIONS AND PROJECTS, AND CANNOT BE INTERPRETED AS A PROMISE OR GUARANTEE OF WHATSOEVER NATURE.HOWEVER, FORWARD-LOOKING STATEMENTS INVOLVE INHERENT RISKS AND UNCERTAINTIES AND ARE CURRENT ONLY AT THE DATE THEY ARE MADE. WE CAUTION YOU THAT A NUMBER OF FACTORS COULD CAUSE THE COMPANYS ACTUAL RESULTS AND PROVISIONS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD-LOOKING STATEMENT. SUCH FACTORS INCLUDE, BUT ARE NOT LIMITED TO: TRENDS IN COMPANYS BUSINESS, ITS ABILITY TO IMPLEMENT COST-CUTTING PLANS, CHANGES IN THE REGULATORY ENVIRONMENT, DIFFERENT INTERPRETATION OF THE LAW AND REGULATION, ITS ABILITY TO SUCCESSFULLY DIVERSIFY AND THE EXPECTED LEVEL OF FUTURE CAPITAL EXPENDITURES. THEREFORE, YOU SHOULD NOT PLACE UNDUE RELIANCE ON SUCH FORWARD-LOOKING STATEMENTS. TERNA DOES NOT UNDERTAKE ANY OBLIGATION TO UPDATE FORWARD-LOOKING STATEMENTS TO REFLECT ANY CHANGES IN TERNAS EXPECTATIONS WITH REGARD THERETO OR ANY CHANGES IN EVENTS.EXECUTIVE IN CHARGE OF THE PREPARATION OF ACCOUNTING DOCUMENTS PIERPAOLO CRISTOFORI DECLARES, PURSUANT TO PARAGRAPH 2 OF ARTICLE 154-BIS OF THE CONSOLIDATED LAW ON FINANCE, THAT THE ACCOUNTING INFORMATION CONTAINED IN THIS PRESENTATION, FOR WHAT CONCERNS THE ACTUAL FIGURES, CORRESPONDS TO THE DOCUMENT RESULTS, BOOKS AND ACCOUNTING RECORDS.THE SORGENTE-RIZZICONI PROJECT AND THE ITALY-FRANCE INTERCONNECTION ARE CO-FINANCED BY THE EUROPEAN UNIONS EUROPEAN ENERGY PROGRAMME FOR RECOVERY PROGRAMME. THE SOLE RESPONSIBILITY OF THIS PUBLICATION LIES WITH THE AUTHOR. THE EUROPEAN UNION IS NO RESPONSIBLE FOR ANY USE THAT MAY BE MADE OF THE INFORMATION CONTAINED THEREIN.Disclaimer 23. 9M14 CONSOLIDATED RESULTSNOVEMBER 12th 2014Investor Relations23investor.relations@terna.it I +39 06 8313 9041 I www.terna.it