1q 2016 consolidated results (may 4, 2016)
TRANSCRIPT
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 1
1Q16Consolidated ResultsMay 4th, 2016
MATTEO DEL FANTE
CHIEF EXECUTIVE OFFICER
PIERPAOLO CRISTOFORI
CHIEF FINANCIAL OFFICER
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 2
Agenda
1Q16 Results
Annexes
Highlights 3
5
13
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 3
Highlights
New Regulatory Framework
M&A
Drivers for 1Q16 Results
WACC from 6.3% to 5.3%
Time-lag shortened
More selective approach for incentives
Grid Fee less exposed to consumption volatility
RHV Grid acquisition: allowed opex + TLC contract
Tamini-TES combination
Efficiencies on
Opex
Debt management
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 4
158€mn Total Capex
7,687€mn Net Debt
517€mn Revenues
162€mn Group Net Income1
395€mn EBITDA
HighlightsKey Financials
1. Attributable to Terna
513€mn in 1Q15 402€mn in 1Q15 165€mn in 1Q15
177€mn in 1Q15 8,003€mn at YE15
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 5
€ mn 1Q15 1Q16 Δ yoy Δ % yoy
Regulated Activities 479 471 -7 -1.5%
Non Regulated Act. 32 43 12 37%
o/w Tamini 19 27 8 42%
Other Non Regulated Act. 12 16 4 28%
IFRIC12 3 3 0 -10%
Total 513 517 4 0.8%
479 471
3
-7 4 0 8
3
19 2712 16
1Q15 ∆RegulatedActivities
∆Other
Non RegulatedActivities
∆IFRIC
∆Tamini
1Q16
Regulated ActivitiesIFRIC12TaminiOther Non Regulated Act.
1Q16 ResultsRevenues
513517+4
KEY FIGURES TOTAL REVENUES EVOLUTION
Total Revenues
517€mn+0.8%yoy
Regulated Activities
471€mn-1.5% yoy
Non Regulated Activities
43€mn
€mn
Regulated Activities
TaminiIFRIC12
Other Non Regulated Act.
1Q15 1Q16
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 6
443 431
32 -12 -4 9 284 12
1Q15 ∆ Transmission
∆ Dispatching
∆ Other
1Q16
TransmissionDispatchingOther
1927
12
4 8 16
1Q15 ∆Other
Non RegulatedActivities
∆Tamini
1Q16
Other Non Regulated Act.
Tamini
Revenues Analysis
479 471
-7
+12
€mn
€mn
REGULATED ACTIVITIES
NON REGULATED ACTIVITIES
NOTE: figures net of IFRIC12 – Managerial Accounting
3243
Tamini
Other Non Regulated Act.
Tamini and EPC Growth
1Q15 1Q16
1Q15 1Q16
1Q16 Results
-16
RHV Grid 12 €mn
Grid Fee New Regulatory Period
Contribution
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 7
€ mn 1Q15 1Q16 Δ yoy Δ % yoy
Regulated Activities 86 84 -2 -2.1%
Non Regulated Act. 23 36 12 54%
o/w Tamini 20 29 9 48%
Other Non Regulated Act. 4 7 3 87%
IFRIC12 3 3 0 -10%
Total 112 122 10 9.3%
86 84
3
-2 30
9
3
20 29
4
7
1Q15 ∆Regulated
Activities
∆Other
Non RegulatedActivities
∆IFRIC
∆Tamini
1Q16
Regulated Activities
Serie2
Tamini
Other Non Regulated Activities
Opex
112
122+10
KEY FIGURES TOTAL COSTS EVOLUTION
Total Costs
122€mn
€mn
Regulated Activities
84€mn
Non Regulated Activities
36€mn
Regulated Activities
TaminiIFRIC12
Other Non Regulated Act.
1Q15 1Q16
1Q16 Results
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 8
2029
4
3 9 7
1Q15 ∆Other
Non RegulatedActivities
∆Tamini
1Q16
49 45
28-4 7
-5
35
8 3
1Q15 ∆ Labour
Costs
∆ External
Costs
∆ Other
1Q16
Labour Costs
External Costs
Other
Opex Analysis
86 84
-2
+12
€mn
€mn
REGULATED ACTIVITIES
NON REGULATED ACTIVITIES
NOTE: figures net of IFRIC12 – Managerial Accounting
RHV GridService Contract
23
36
Tamini
Other Non Regulated Act.
1Q15 1Q16
1Q15 1Q16
Services
56%EBITDA Margin
1Q16 Results
EfficiencyVoluntary Turnover Programme
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 9
From EBITDA to Net Income
KEY FIGURES PROFIT & LOSS
Group EBITDA
395€mn
Group EBITDA Margin
76.4%
Group Net Income1
162€mn
-1.6%yoy
-1.8%yoy
€mn
395
264 245162
131
1983
EBITDA D&A EBIT NetFinancialExpenses
PBT Taxes GroupNet Income
€ mn 1Q15 1Q16 Δ Δ %
EBITDA 402 395 -7 -1.6%
Ebitda % 78.2% 76.4%
D&A 120 131 11 9.1%
EBIT 281 264 -17 -6.2%
Net Financial Expenses 31 19 -12 -38%
PBT 250 245 -6 -2.2%
Tax Rate 34% 34%
Taxes 85 83 -2 -2.1%
Group Net Income1 165 162 -3 -1.8%
1. Attributable to Terna
1
1Q16 Results
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 10
Category (€mn) 1Q15 1Q16 Δ yoy Δ % yoy
Capex at 1% Incentive 48 43 -5 -11%
Capex at Base Return 118 107 -11 -9.5%
Regulated Capex 167 150 -17 -10%
Other 11 8 -3 -25%
Total Group Capex 177 158 -19 -11%
Capex
KEY FIGURES BREAKDOWN
Total Capex
158€mn
NOTE: Figures in accordance with AEEGSI resolutions
1. Of which 5mn related to Capitalized Financial Charges
1
1Q16 Results
Regulated Capex
150€mn
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 11
72%
21%
7%Terna SpA BondsEIB LoansBanks
7,6878,003
295
211 15819 14
FY15 Operating…Δ WC & Other capex net financial dividend 1Q16
Net Debt Evolution & Financial Structure
KEY FIGURES
Free Cash Flow1
348€mn
GROSS DEBT BREAKDOWN4
8.1€bn
1. see Annex “Consolidated Cash Flow” for details2. Including Other Fixed Assets Changes, Change in Capital & Other3. Including Cash Flow Hedge accruals and other4. IAS accounting
Dec.31,
2015
Operating
Cash
Flow1
Δ WC
&
Other2
-315
Capex
FCF AND NET DEBT EVOLUTION€mn
Fixed/floating ratio
Calculated on Net Debt
62/38
Net Debt
7,687€mn
Mar. 31,
2016
Free Cash Flow
348
Debt
Service
Dividends
&
Equity3
1Q16 Results
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 12
THANK YOU.QUESTIONS?
MATTEO DEL FANTE
CHIEF EXECUTIVE OFFICER
PIERPAOLO CRISTOFORI
CHIEF FINANCIAL OFFICER
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 13
Annexes
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 14
24.5 24.7
26.6
30.3
24.6
26.6
25.6 26.025.5
26.3 26.9
25.7
23
25
27
29
31
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Montly energy demand
Previous Year
24.1
24.9
26.3
32.1
25.126.5
25.9
25.7 25.8
26.3
25.4
26.0
23
25
27
29
31
33
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Monthy energy demand Previous Year
AnnexElectricity Market Trends – Last 12 Months
TWh
TWh
DEMAND AS REPORTED (TWh)
NOTE: 2014 final figures, 2015 & 2016 provisional figures (as of April 2016)
1. For temperature and number of days
DEMAND ADJUSTED1 (TWh)
1Q15 1Q16 Δ %
78.8 77.6 -1.5%
1Q15 1Q16 Δ %
80.3 78.9 -1.8%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
YoY Chg% -2.2% -0.5% -1.0% 8.5% 3.0% 1.2% -0.7% -0.6% -0.4% -0.9% -2.2% -2.2%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
YoY Chg% -0.6% -1.7% -0.1% 13.7% 5.8% 1.2% -1.9% 0.9% 0.6% -1.7% 0.2% -2.9%
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 15
€ mn 1Q15 1Q16 Δmn Δ%
Transmission 443 431 -12 -2.7%
Dispatching 32 28 -4 -12%
Other 2 4 12 9 230%
Regulated Activities 479 471 -7 -1.5%
Non Regulated Act. 32 43 12 37%
IFRIC12 3 3 0 -10%
Total Revenues 513 517 4 0.8%
Labour Costs 49 45 -4 -7.7%
External Costs 28 35 7 24%
Other 8 3 -5 -59%
Regulated Activities 86 84 -2 -2.1%
Non Regulated Act. 23 36 12 54%
IFRIC12 3 3 0 -10%
Total Costs 112 122 10 9.3%
EBITDA 402 395 -7 -1.6%
D&A 120 131 11 9.1%
EBIT 281 264 -17 -6.2%
Net Financial Charges 31 19 -12 -38%
Pre Tax Profit 250 245 -6 -2.2%
Taxes 85 83 -2 -2.1%
Tax Rate (%) 34% 34%
Total Net Income 165 161 -4 -2.3%
Minority Interest - -1 -1
Group Net Income 165 162 -3 -1.8%
Consolidated Income Statement1
Annex
1. Managerial Accounting2. Quality of Service + Other Revenues
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 16
€ mn 1Q15 1Q16 Δmn Δ%
Labour Costs 56 54 -2 -4.1%
Services 31 41 10 31%
Materials 13 20 8 61%
Other 9 5 -4 -48%
IFRIC12 3 3 0 -10%
Total Costs 112 122 10 9.3%
Group Costs BreakdownAnnex
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 17
€ mn Dec. 31,2015 Mar. 31,2016 Δmn
PP&E 12,079 12,082 3
Intangible Asset 520 514 -6
Financial Inv. and Other 90 91 1
Total Fixed Assets 12,688 12,687 -1
Net WC -962 -1,145 -183
Funds -378 -362 17
Total Net Invested Capital 11,349 11,181 -168
Financed by
Consolidated Net Debt 8,003 7,687 -316
Total Shareholder's Equity 3,346 3,494 148
Total 11,349 11,181 -168
D/E Ratio 2.4 2.2
D/D+E Ratio 0.7 0.7
Number of Shares ('000) 2,010 2,010
Consolidated Balance SheetAnnex
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 18
€ mn 1Q15 1Q16 Δmn
Total Net Income 165 161 -4
D&A 120 131 11
Debt Service 31 19 -12
Net Change in Funds -12 -17 -5
Operating Cash Flow 304 295 -9
∆ Working Capital & Other 1 344 211 -133
Cash Flow from Operating Activities 649 506 -142
Capital Expenditures -177 -158 19
Free Cash Flow 471 348 -123
Dividends & Equity 2 9 -14 -23
Debt Service -31 -19 12
Change in Net Cash (Debt) 450 315
Consolidated Cash FlowAnnex
1. Including, Other Fixed Assets Changes, Change in Capital & Other2. Including Cash Flow Hedge accruals and other
1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 19
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1Q16 CONSOLIDATED RESULTS MAY 4th 2016
Investor Relations 20
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