Terna’s Board of Directors: 2012 results approved
March 2013 00:00
- Dividend proposed for 2012: 20 eurocents per share (of which 7 cents already paid as interim dividend and 13 cents as final dividend payable next June)
- Record-breaking Group’s total capex at 1,235 million euros
- Revenues at 1,806 million euros
- Ebitda at 1,390 million euros
- Ebit at 969 million euros
- Group’s Net Income at 464 million euros
CEO Flavio Cattaneo presented the 2012 results, which were examinated and approved by TERNA SpA’s Board of Directors, that met today chaired by Luigi Roth.
“We close also 2012 with very good results, that recognizethe outstanding professional level of Terna’s team – commented CEO Flavio Cattaneo. This eighth consecutive year of growth rewards the efforts we have carried out, whose goals were and continue to be an increasingly efficient and safe electricity grid and the value creation; this is based on a strategic approach which combines the core business and the development of Non Traditional Activities. The record-breaking level of investments and the 2012 dividends confirm Terna’s focus on the electricity grid and on shareholders
CONSOLIDATED ECONOMIC AND FINANCIAL RESULTS
|Ebitda (Gross Operating Margin)
|Ebit (Operating Profit)
|Earnings before taxes
2012 Consolidated Revenues stood at 1,806 million euros, of which 1,592 million euros attributable to the Parent Company and 197 million euros to the subsidiary Terna Rete Italia Srl, with a growth of 170 million euros (+10.4%) compared to 2011, mainly due to the Grid Transmission Fee and to the results from Non Traditional Activities carried out by the Group, equal to 86 million euros.
Operating expenses, equal to 416 million euros, registered a 10 million euro increase (+2.5%) compared to the previous year, mainly due to the combined effect of a reduction in personnel expenses and of an increase in other business costs.
Ebitda (Gross Operating Margin) stood at 1,390 million euros, of which 64 million euros attributable to Non Traditional Activities, with an increase of 160 million euros (+13%) compared to 1,230 million euros in 2011. Ebitda margin rose from 75.2% in 2011 to 77% in 2012.
Depreciation for the year increased by 27 million euros compared to 2011, mainly for the start up of new plants.
Ebit (Operating Profit) was equal to 969 million euros, increasing by 133 million euros (+15.9%) compared to 836 million euros in 2011.
Net financial charges for the year stood at 93 million euros, 28 million euros lower compared to 2011, essentially due to a reduction in interest rates.
Income taxes for the year were equal to 412 million euros, rising by 24 million euros (+6.2%) compared to 2011, essentially due to the increase in the Profit Before Tax.
The tax rate was equal to 47%, compared to 54.3% in 2011 which was affected by the non recurring impact of the Deferred Tax Fund adjustment, following the application of the so-called Robin Hood Tax. Without this impact, the 2012 tax rate would be comparable to the previous year.
The Group’s Net Income stood at 464 million euros, rising by 24 million euros (+5.5%) compared to 2011, that included 113 million euros from discontinued operations.
The consolidated Balance Sheetas of December 31, 2012 registered a Net Shareholders’ Equity equal to 2,794 million euros (compared to 2,751 million euros as of December 31, 2011).
Net financial debt was equal to 5,855 million euros (compared to 5,123 million euros as of December 31, 2011) and registered an increase of 732 million euros compared to 2011.
The debt/equity ratio as of December 31, 2012 was equal to 2.1.
Total investments made by the Group in 2012 were equal to 1,235 million euros, rising by 0.5% compared to 1,229 million euros in 2011.
Group Headcount at the end of 2012 was equal to 3,436, decreasing by 59 units compared to December 31, 2011.
2012 RESULTS OF THE PARENT COMPANY – TERNA SpA
The Parent Company closed 2012 with Revenues at 1,660 million euros, a 6.8% increase compared to 1,554 million euros of the previous year.
Operating Expenses amounted to 460 million euros, increasing by 6.5% compared to 2011.
Ebitda stood at 1,200 million euros, equal to 72.3% of revenues (rising by 0.1 percentage points compared to 2011), with a 78 million euro increase compared to 1,122 million euros in the previous year (+7.0%).
Depreciation, equal to 371 million euros, rose by 22 million euros compared to 2011.
Ebit was equal to 829 million euros, rising by 7.2% (equal to +56 million euros) compared to 2011.
Net income for the year stood at 463 million euros, increasing by 9 million euros (+2.0%) compared to the 2011 net income, that included 34 million euros from discontinued operations.
The Balance Sheet registered a Shareholders’ Equity equal to 2,599 million euros (compared to 2,555 million euros in 2011), while the Net Debt was equal to 5,621 million euros (+816 million euros compared to December 31, 2011).
SIGNIFICANT EVENTS OCCURRED AFTER YEAR-END
Terna recognized as the best European utility for Total Shareholder Return
On March 11, 2013 Terna received in London the “International Utility Award 2013” from Washington DC-based Edison Electric Institute (EEI) (USA). Terna has been recognized as the best of its category among the European utilities for Total Shareholder Return in the 2010-2012 three year period. Indeed, in that period Terna’s return stood at 24%, compared to average returns in the sector and of the Italian indexes that were definitely negative (DJ Stoxx -10%, Ftse Mib -21%).
AEEG Resolutions on pilot projects for storage systems
With resolutions 66/2013/R/eel of February 21, 2013, and 43/2013/R/eel, of February 7, 2013, the Authority for Electricity and Gas assigned the incentive mechanism based on a 2% extra remuneration (category I=4), respectively, to 6 “energy intensive” pilot projects (for a total of 35 MW of experimental storage systems included in the 2011 National Development Plan), and to 2 “power intensive” pilot projects (for a total of 16 MW of storage systems included in the 2012 Defence Plan of the National Transmission Grid).
Terna, the only Italian electricity company in the World Sustainability Gold Class
On January 23, 2013 Terna, the only Italian electricity company, was included for the second consecutive year in the Gold Class of RobecoSam – Sustainability Yearbook 2013, the yearbook of the International rating agency that conducts a screening of companies by assessing their possibility of access, inclusion or exclusion from the prestigious Dow Jones Sustainability indexes based on an ethical analysis that takes into account the main disputes and compliance with strict economic, environmental and social performance criteria.
In 2013, the Company will implement the 2013-2017 Strategic Plan approved by the Board of Directors on February 6, 2013.
In line with the strategy of the previous Strategic Plan, the Group finalized the corporate restructuring process which established a company structure with greater focus on Non Traditional Activities on top of the consolidated Traditional Activities.
With reference to Traditional Activities, and particularly to the development and renewal of the National Transmission Grid, the investments are expected in line with the year just ended; in particular, according to the National Development Plan, the Company shall continue to develop and build interconnections with foreign Countries (Montenegro and France), to reduce grid congestions (projects Sorgente-Rizziconi* and Trino-Lacchiarella) and to continue the development of storage systems projects.
In terms of revenues, regulated activities are expected to increase, thanks to investments made in 2011 and the impacts of the re-evaluation of the Regulated Asset Base (RAB).
In line with the previous years, the Company will continue to implement the rationalization of processes and to pursue greater efficiency, while also ensuring the highest quality of the transmission and dispatching services.
Regarding funding, the bonds issued during 2012 will guarantee the resources available for corporate activities until 2015.
SHAREHOLDERS’ MEETING CALL AND DIVIDENDS
In line with the dividend policy, The Board of Directors will submit to the Shareholders’ Meeting the approval of a total ordinary dividend for the entire 2012 equal to 20 eurocents per share and the distribution of the remaining 13 eurocents per share gross of any legal withholdings.
It should be noted that on November 8, 2012, TERNA’s Board of Directors had already resolved the distribution to shareholders of an ordinary interim dividend for 2012 equal to 7 eurocents per share gross of any legal withholdings, paid as of November 22, 2012.
The Board of Directors will propose June 24, 2013 as the “ex-dividend date” for coupon no.18 (record date pursuant to art.83-terdecies of Legislative Decree no. 58 dated February 24, 1998, so-called “TUF”: June 26, 2013) and June 27, 2013 for the relative payment.
The Ordinary Shareholders’ Meeting called upon to approve TERNA S.p.A.’s financial statement as of December 31, 2012 and the allocation of income will be convened on May 14, 2013, on single call.
The section of “Terna’s Annual Report on Remuneration” that - with reference to the members of administrative bodies, general directors and other managers holding strategic responsibilities – includes information on the Remuneration Policy and the procedures used for the adoption and implementation of this Policy, will be submitted to the Ordinary Shareholders’ Meeting in its consultative session with non-binding vote.
In its extraordinary session, the Meeting will be called to resolve on some changes to the Company Bylaws, essentially following the new provisions introduced by Legislative Decree no. 91, dated June 18, 2012 emending Legislative Decree no. 27, dated January 27, 2010, implementing the so-called Directive on Shareholders’ Rights (regarding particular shareholders’ rights of listed companies). These regard, among others, articles 2369 c.c. and 147-ter of the Consolidated Law on Finance for the summoning of meetings and depositing lists.
The documentation relative to the items on the agenda of the Shareholders’ Meeting, as established by the existing regulations, will be made available to the public in compliance with law provisions.
A conference call will be held at 12:30 a.m. to illustrate the 2012 results to financial analysts and institutional investors which also journalists can attend in the audio mode. The support material for the conference call will be available on Borsa Italiana S.p.A’s website (www.borsaitaliana.it) and on Terna’s website (www.terna.it), in the Investor Relations/Presentations section concomitantly with the beginning of the conference call itself. In the same section it will also be possible to follow the presentation through audio webcasting.
The manager responsible for preparing the company’s financial reports, Luciano Di Bacco, declares pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance (TUF), that the accounting information included in this press release corresponds to the document results, books and accounting records.
The 2012 Annual Report including TERNA S.p.A.’s draft financial statement and the TERNA Group’s consolidated financial statement as of December 31, 2012, together with TERNA S.p.A.’s report on the management, the Consolidated Financial Statement and the certification of the manager responsible and of the CEO in compliance with paragraph 5 of article. 154-bis of the Consolidated Law on Finance, with additional documents as established by the law and with the Annual Report on Corporate Governance and ownership structure, will be deposited and made available to the public at the company’s headoffice and at the market management company Borsa Italiana S.p.A. and will be available on Borsa Italiana S.p.A.’s website (www.borsaitaliana.it) and on the Company’s website (www.terna.it,) in compliance with the terms established by the law. The established information regarding the deposit will be issued.
The 2012 Annual Report has been submitted to the Board of Statutory Auditors and to the Independent Auditing Company for their relevant evaluation.
The report by the Board of Statutory Auditors and the reports by the Independent Auditing Company will be made available to the public as soon as they are available according to the terms established by the law.
It should be noted that, according to communication no. DME/9081707 of September 16, 2009, the reclassified charts of the Income Statement, Balance Sheet and Cash Flow Statement of the Terna Group and of Terna S.p.A. attached herewith, are the ones included in the Report on the Management (included in the Annual Financial Report as of December 31, 2012), for which the Independent Auditing Company, in compliance with art. 14 of Legislative Decree no. 39 dated January 27, 2010 shall verify its consistency with the Financial Statement.
* Terna S.p.A. is the only responsible party for the information included herein. The EU is not responsible of any use that could be made of the information included herein.
Rome, March 15, 2013
In this release some "alternative performance indicators" are used (Ebitda and Net financial debt), the meaning and content of which are illustrated below and are in line with CESR/05-178b recommendation published on November 3,
- Ebitda (gross operating margin): represents an operating performance indicator; it is calculated by adding the operating profit (EBIT) to the amortization;
-Ebitda margin: represents an operating performance indicator: it derives from the ratio between the Gross Operating Margin (Ebitda) and revenues;
- Net financial debt: represents an indicator of the company's financial structure: it is determined as the result of short and long term financial debt and of related derivative instruments, net of cash and cash equivalents and of financial assets.
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