3. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
Highlights
1Q12 at a Glance
P&L RESULTS BALANCE SHEET INVESTMENTS
Total Revenues Net Debt Continuing Operations Total Group Capex
+12.2% yoy 5,273 €mn
246 €mn
at 432€mn +150€mn vs. FY11 -22€mn vs. 1Q11
EBITDA Rating
+15.3% yoy Single A Area
at 340€mn
Net Income Cont.Op.
+19.8%* yoy
at 114€mn
* Vs Net Income 1Q11 adjusted applying Robin Hood Tax
Investor Relations 3
4. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
1Q12 Results
Consolidated Revenues
Total Revenues Grid Fee Other Activities
+12.2% yoy +9.3% yoy Stable yoy
at 432€mn at 384€mn at 15€mn
Revenues Breakdown* Revenues Evolution*
+47 432 2 -1
12 3 14
432
385 33 33
4
10 385
19
47
384
352
Other Activities
1Q11 1Q12 1Q11 Grid Fee Other Non Other 1Q12
Energy Regulated Revenues
Grid Fee Other Energy Items Items Revenues
Non Regulated Revenues Other Revenues
* In resolution n° 11/07 the Regulator redefined the perimeter of Terna’s activities for the Fourth Regulatory Period, moving the Energy Operation
Activities from Transmission to Dispatching In € mn
Investor Relations 4
5. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
1Q12 Results
Consolidated Costs & EBITDA
Total Operating Costs EBITDA EBITDA Margin
+2mn yoy +15.3% yoy 78.7%
at 92€mn at 340€mn
Costs Breakdown Costs Evolution
+2 92
2 -1
90 0
8 7
31 33
90 92
Salaries
Services
52 52 Other
1Q11 1Q12 1Q11 Salaries Services Other 1Q12
In € mn
Investor Relations 5
6. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
1Q12 Results
From EBIT to Net Income
EBIT € mn 1Q11 1Q12 ∆ ∆%
+20% yoy D&A 95 101 6 6.3%
at 239€mn EBIT 200 239 39 19.6%
Profit Before Taxes
Net Financial Expenses 25 31 6 23.5%
+19% yoy PBT 174 208 33 19.0%
at 208€mn
Tax Rate Impacted by 1
Tax Rate 34.6% 45.0% +10.4 pp
Robin Hood Tax 1
Taxes 60 93 33 54.6%
Net Income Cont. Op. Net Income Continuing Operations 114 114 0 0.2%
2
Net Income Adj. Continuing Operations 95 114 19 19.8%
+20% yoy 2 Net Income Discontinued Operations 59 0 -59
at 114€mn Group Net Income 173 114 -59 -34.1%
1 Including 0.4 €mn restated for redemption of goodwill
2 Vs Net Income 1Q11 adjusted applying Robin Hood Tax
Investor Relations 6
7. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
1Q12 Results
Capex Breakdown
Total Regulated Capex Incentivized Capex
Stable yoy 82% of Reg. Capex
at 232€mn at 192€mn
€mn
Capex Regulated Activities
€ mn 1Q11 1Q12 ∆ yoy ∆ % yoy
I3 127 87 -40 -32%
18%
I2 63 105 42 68%
37%
232 I1 41 41 0 -1%
€mn Total Regulated Capex 231 232 2 1%
Other* 37 13 -23
45%
Total Group Capex 267 246 -22 -8%
I1 I2 I3
*Not included in RAB + Capitalized Financial Charges + Non Traditional Capex
Investor Relations 7
8. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
1Q12 Results
Net Debt Evolution & Financial Structure
Net Debt Fix/Floating Ratio Avg. Maturity
5,273€mn 73/27% 9 years
Net Debt Evolution €mn Financial Indebtedness
Terna SpA Bonds
+150 EIB Loans
15% Banks LT+ST
245
201 106 18%
67%
5,123 5,273
4923 4923 5026
Rating
M/L Term Outlook
S&P A- Negative
Dec.31, Operating ∆ WC & Capex* March 31, Moody's A3 Negative
2011 Cash Flow Other 2012
Fitch A Negative
* Including Other Fixed Assets Changes
Investor Relations 8
9. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
THANK YOU.
QUESTIONS?
Giuseppe Saponaro Chief Financial Officer
1Q12 Consolidated Results
MAY 15th, 2012
Investor Relations 9
11. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
Annexes
Electricity Market Trends
1Q12 Energy Demand
1Q11 1Q12 ∆ % YtD Jan/Apr 11 Jan/Apr 12 ∆%
-1.9% yoy Demand TWh 84.7 83.0 -1.9% Demand TWh 110.8 107.6 -2.9%
-0.3% 12 months rolling
TWh
32 Range last 5 years
31 12 Months Rolling
Yr -1
30
29
28
27
26
25
24
May Jun Jul Aug Sep
Sep Oct Nov Dec
Dec Jan
Jan Feb
Feb Mar
Mar Apr
Apr
YoY Chg% 2.1% 1.1% -3.9% 4.5% 6.1% -1.3% -1.9% -5.0% -2.6% 2.2% -5.2% -6.2%
Investor Relations 11
12. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
Annexes
Consolidated Income Statement
€ mn 1Q11 1Q12 ∆mn ∆%
Operating Revenues 385 432 47 12.2%
of which
Grid Fee 352 384 33 9.3%
Other Energy Items 19 33 14 70.8%
Other Activities 14 15 1 3.6%
Operating Expenses 90 92 2 2.0%
of which
Salaries 52 52 0 0.2%
Services 31 33 2 7.1%
Other 8 7 -1 -6.7%
EBITDA 295 340 45 15.3%
D&A 95 101 6 6.3%
EBIT 200 239 39 19.6%
Financial Income & Equity Inv. 11 16 6 53.3%
Financial Charges 36 47 12 32.4%
Pre Tax Profit 174 208 33 19.0%
*
Taxes 60 93 33 54.6%
*
Tax Rate (%) 34.6% 45.0%
Net Income Continuing Operations 114 114 0 0.2%
Net Income Discontinued Operations 59 0
Total Net Income 173 114 -59 -34.1%
* Including 0.4 €mn restated for redemption of goodwill
Investor Relations 12
13. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
Annexes
IFRIC 12
€ mn 1Q11 1Q12 ∆
Operating Revenues 385 432 47
of which
Grid Fee 352 384 33
Other Energy Items 13 27 14
Other Activities 14 15 1
IFRIC 12 6 5 -1
Operating Expenses 90 92 2
of which
Salaries 50 50 0
Services 27 30 2
Other 7 7 0
IFRIC 12 6 5 -1
Investor Relations 13
14. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
Annexes
Consolidated Balance Sheet
*
€ mn FY11 1Q12 ∆mn
Assets
PP&E 8,618 8,767 149
Intangible Asset, net 471 465 -6
Financial Inv. And Other 74 75 1
Total Fixed Assets 9,163 9,308 144
Net WC -724 -621 103
Funds -565 -551 14
Total Net Invested Capital 7,874 8,136 262
Financed by
Consolidated Net Debt 5,123 5,273 150
Total Shareholder's Equity 2,751 2,863 112
D/E Ratio Continuing Operations 1.86 1.84
Number of Shares ('000) 2,010 2,010
Investor Relations 14
15. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
Annexes
Consolidated Cash Flows
€ mn 1Q11 1Q12
Net Income 114 114
Depreciation * 94 100
Net Change in Funds -13 -14
Operating Cash Flow 196 201
Change in Working Capital 42 -103
Cash Flow from Operating Activities 237 97
Capital Expenditures -267 -246
Other Fixed Asset Changes -35 1
Free Cash Flow -65 -148
Dividends 0 0
Change in Capital and Other 30 -3
PV Disposal 209 0
Change in Net Cash (Debt) 173 -150
* Net of assets’ disposal
Investor Relations 15
16. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
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 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
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THIS DOCUMENT MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON. THE
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LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT THE COMPANY’S BELIEFS AND
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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 COMPANY’S ACTUAL RESULTS AND
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INCLUDE, BUT ARE NOT LIMITED TO: TRENDS IN COMPANY’S BUSINESS, ITS ABILITY TO IMPLEMENT COST-CUTTING PLANS,
CHANGES IN THE REGULATORY ENVIRONMENT, DIFFERENT INTERPRETATION OF THE LAW AND REGULATION, ITS ABILITY TO
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PLACE UNDUE RELIANCE ON SUCH FORWARD-LOOKING STATEMENTS. TERNA DOES NOT UNDERTAKE ANY OBLIGATION TO
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EXECUTIVE IN CHARGE OF THE PREPARATION OF ACCOUNTING DOCUMENTS “LUCIANO DI BACCO” 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.
Investor Relations 16
17. 1Q12 CONSOLIDATED RESULTS MAY 15th 2012
Head of Investor Relations – Antonio Colombi – antonio.colombi@terna.it
Executive Assistant to the CEO – Elisabetta Colacchia – elisabetta.colacchia@terna.it
Investor Relations 17
