Terna Energy S A : IR Report 9M 2023

9M 2023 Results

November 2023

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1

9M 2023 Highlights

Strong performance in 3Q following normalisation of wind conditions and increased capacity allows to recover slow start of the year - 3Q adj.EBITDA+50.9% y-o-y // 9M adj.EBITDA € 124.5m (-1.6%y-o-y)

Key Highlights

• Installed capacity at 1.2 GW post Kafireas completion (vs. 0.9GW in end-2022)
• Normalised wind conditions for August and September along with increased effective capacity drive generation higher, allowing to recover from slow start of the year
• Further acceleration expected in 4Q as Kafireas now operates with full capacity
• ~2.5GW of projects operating, under construction or ready to build phase

Key Financials

• 3Q Group revenues increase by 43.1% y-o-y to € 90.3m // adj.EBITDA +50.9% y-o-y € 49.8m oGroup Load Factor 3Q 2023 at 29.6% (vs. 29.2% in 3Q 2022) - Power generation +28.4% y-o-y
• 9M Group revenues increase by 7.8% y-o-y to € 235.9m // adj. EBITDA at 124.5m, -1.6%y-o-yoGroup Load Factor 9M 2023 at 27.9% (vs. 31.1% in 9M 2022) - Power generation +2.3% y-o-y
• Group adj. Net Profit 3Q € 18.0m (+87.5% y-o-y) // 9M € 41.9m (-21.2%y-o-y)
• Operating CF 9M 2023 at € 113.9m // € 58.9m of OCF in 3Q 2023
• Capex at € 178m during the 9M period for Kafireas and Amfilochia
• Net debt at € 844.4m (vs. € 669.3m in Dec'22) with leverage (Net Debt/adj.EBITDA) at 5.2x

2

Growing Asset Base

Installed capacity increases to 1.2GW while under construction/RTB exceed 1.2GW

Operating capacity

MW

1,225

1.096

895

906

202120221H 2023Sep-23

Installed capacity outlook

GW	~3.3
~0.8
~2.5
>1.2

1.2

Sep-23

Underway

Advanced / Early Stage

Mid-Term Target

Wind

Solar

Hydro

BESS

Other

FINANCIAL RESULTS

3

Operating Performance Overview

Wind conditions in 3Q 2023 recover to normalised levels and along with increased effective capacity drive generation volumes sharply higher, recovering the slow 1H 2023 performance

Portfolio load factor per country

30,3%	31,2%		29,9%		29,6%
28,3%	27,7%	27,9%
28,5%	26,2%
	24,0%		24,4%
		16,8%

Greece	Poland				Bulgaria	Total
			Long Τerm Annual		9M 2023		Q3 2023

2023 Load factor vs. long-term average(1)

50,0%

40,0%

30,0%

20,0%

10,0%

0,0%

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

14y Max

14y Mean

14y Min

2023

(1) Average for a representative sample of assets for the period 2008-22

FINANCIAL RESULTS

4

Financial Performance by Business Segment

Increased RES production in 3Q drives revenues and profitability higher - Increased contribution from Waste Management and Construction

€ m		3Q 2022	3Q 2023	y-o-y		9Μ 2022	9Μ 2023	y-o-y
Group revenues	63.0	90.2	43.1%	218.9	235.9	7.8%
RES	52.8	67.8	28.3%	175.2	173.1	(1.1%)
Waste Management	2.8	5.1	80.9%	5.9	11.7	98.3%
E-Ticket	3.2	3.3	5.1%	9.3	10.2	9.7%
Construction	4.3	14.1	225.9%	28.6	40.9	43.0%
Group adj. EBITDA	33.0	49.8	50.9%	126.5	124.5	(1.6%)
RES	35.7	46.1	26.7%	124.0	116.9	(5.7%)
Waste Management	0.8	1.2	44.6%	0.9	4.2	366.7%
E-Ticket	0.3	1.5	449.5%	1.0	2.4	140.0%
Construction	-3.8	1.0	n.m.	0.6	0.9	50.0%
Group adj. EBITDA margin	52.3%	55.2%		57.8%	52.8%
RES segment adj. EBITDA margin	67.5%	67.8%		70.8%	67.6%
Group adj. Net Profit	9.6	18.0	+87.5%	53.1	41.9	(21.2%)

FINANCIAL RESULTS

5

Financial Performance - RES Segment

Strong performance in 3Q following wind conditions normalization (for August & September) and increased effective capacity (Kafireas only partially in operation during 3Q) allow recovery of slow 1H 2023 - Further acceleration expected as Kafireas enters full operation in 4Q 2023 and wind conditions remain supportive

RES Revenues

€ m	-13.2%y-o-y	-14.7%y-o-y	+28.3% y-o-y	-1.1%y-o-y

175,2 173.1

68,8	59,7	53,6				52,8	67,8
	45,7
1Q			2Q		3Q	9M
					2022		2023

RES adj.EBITDA

€ m

-26.5%y-o-y

-7.0%y-o-y

+26.7% y-o-y

-5.7%y-o-y

124,0 116.9

57,7						46.1
42,4				35,7
30,6	28,5
1Q	2Q		3Q	9M
			2022		2023

FINANCIAL RESULTS

Cash Flow

Strong operating cash flow generation continues, supporting the investment program and shareholder returns

Cash flow bridge

€ m

124,5 1,6 12,2

391,9

178,0

105,8 35,8

3,3

46,5

6,2 354,2

	Net Operating CF (1)	Net Investing CF (1)	Net Financing CF (1)
	9M 2023: 113.9m	9M 2023: (181.3) m	9M 2023: 29.7 m
Cash and	adj. EBITDA WC change Taxes	Capex	Other	Net change Interest paid Dividends	Other &	Cash and
equivalent	and other		Investing	in loans	Disc. Ops	equivalent
Dec-22	non cash		(inc. grants)			Sep-23

Capex(1)

€ m

240

182

178

Kafireas Capex allocation is

almost complete as

Amfilochia commences

~45%

(~10% of total)

~52%

FY 2021

FY 2022

9M 2023

Kafireas

Amfilochia

Total

Notes:

1. From continued operations

FINANCIAL RESULTS

6

Balance Sheet Highlights

Healthy leverage and liquidity to sustain investment plans

Cash and Cash Equivalent(1)				Gross debt
€ m					€ m	1.246,6
			1.123,1	1.164,1
397,4	391,9	983,5
			354.2
		326,4

FY 2021	FY 2022	1H 2023	9M 2023	FY 2021	FY 2022	1H 2023	9M 2023
							~3.5x adjusted for
Net Debt				Net debt / adj. EBITDA		Group run rate
				inc. Karifeas @
€ m				(x)			100% Capex
			844.4			5,3	5,2
		770,9

669,3	4,1
	3,3
528,0

FY 2021	FY 2022	1H 2023	9M 2023	FY 2021	FY 2022	1H 2023	9M 2023
Notes:	1. Does not include restricted cash.

FINANCIAL RESULTS

7

Terna Energy Unique Investment Proposition

Portfolio Update