Consolidated financial statements
Consolidated income statement
| (€m) | |||
| NOTE | 2023 | 2022 | |
|---|---|---|---|
| A – REVENUE | |||
| 1: Revenue from sales and services | 1 | 3,122.8 | 2,898.1 |
| of which: related parties | 1,805.9 | 1,718.7 | |
| 2: Other revenue and income | 2 | 63.9 | 66.4 |
| of which: related parties | 0.4 | 0.8 | |
| Total revenue | 3,186.7 | 2,964.5 | |
| B – OPERATING COSTS | |||
| 1: Raw and consumable materials used | 3 | 285.4 | 247.8 |
| of which: related parties | 0.1 | – | |
| 2: Services | 4 | 312.3 | 276.9 |
| of which: related parties | 10.1 | 10.4 | |
| 3: Personnel expenses | 5 | 377.2 | 348.1 |
| – gross personnel expenses | 513.6 | 464.2 | |
| – capitalised personnel expenses | (136.4) | (116.1) | |
| of which: related parties | 4.4 | 3.7 | |
| 4: Amortisation, depreciation and impairment losses | 6 | 806.3 | 725.7 |
| 5: Other operating costs | 7 | 43.2 | 32.5 |
| of which: related parties | 0.2 | 0.1 | |
| Total operating costs | 1,824.4 | 1,631.0 | |
| A-B OPERATING PROFIT/(LOSS) | 1,362.3 | 1,333.5 | |
| C – FINANCIAL INCOME/(EXPENSES) | |||
| 1: Financial income | 8 | 107.4 | 22.7 |
| 2: Financial expenses | 8 | (227.7) | (121.8) |
| 3. Share of profit/(loss) of investees accounted for using the equity method | 9 | 2.6 | (1.0) |
| D – PROFIT/(LOSS) BEFORE TAX | 1,244.6 | 1,233.4 | |
| E – INCOME TAX EXPENSE | 10 | 364.3 | 355.4 |
| F – PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS | 880.3 | 878.0 | |
| G – PROFIT/(LOSS) FOR THE YEAR FROM DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE | 11 | 2.5 | (20.3) |
| H – PROFIT FOR THE YEAR | 882.8 | 857.7 | |
| Profit attributable to owners of the Parent | 885.4 | 857.0 | |
| Profit attributable to non-controlling interests | (2.6) | 0.7 | |
| Earnings per share | 12 | ||
| Basic earnings per share (€) | 0.441 | 0.427 | |
| Diluted earnings per share (€) | 0.441 | 0.427 | |
| Earnings per share from continuing operations | |||
| Basic earnings per share (€) | 12 | 0.439 | 0.438 |
| Diluted earnings per share (€) | 0.439 | 0.438 | |
Consolidated statement of comprehensive income
| (€m) | |||
| NOTE | 2023 | 2022 | |
|---|---|---|---|
| PROFIT FOR THE YEAR | 882.8 | 857.7 | |
| Other comprehensive income for the year reclassifiable to profit or loss | |||
| – Cash flow hedges | 24 | (37.6) | 223.3 |
| – Financial assets at fair value through other comprehensive income | 24 | 1.0 | (4.4) |
| – Cost of hedges | 24 | (3.5) | (10.4) |
| Other comprehensive income for the year not reclassifiable to profit or loss | |||
| – Actuarial gains/(losses) on provisions for employee benefits | 24 | (3.5) | (10.4) |
| Total other comprehensive income | (28.2) | 242.8 | |
| COMPREHENSIVE INCOME FOR THE YEAR | 854.6 | 1,100.5 | |
| COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO: | |||
| Owners of the Parent | 857.0 | 1,101.1 | |
| Non-controlling interests | (2.4) | (0.6) | |
*Amounts are shown net of tax, where applicable
Consolidated statement of financial position
| (€m) | |||
| NOTE | AT 31 DECEMBER 2023 | AT 31 DECEMBER 2022 | |
|---|---|---|---|
| A – NON-CURRENT ASSETS | |||
| 1. Property, plant and equipment | 13 | 17,596.7 | 16,200.9 |
| of which: related parties | 59.3 | 41.1 | |
| 2. Goodwill | 14 | 252.3 | 251.5 |
| 3. Intangible assets | 15 | 614.9 | 524.3 |
| 4. Deferred tax assets | 16 | 168.7 | 121.0 |
| 5. Investments accounted for using the equity method | 17 | 76.7 | 73.8 |
| 6. Non-current financial assets | 18 | 425.8 | 494.4 |
| 7. Other non-current assets | 19 | 15.5 | 15.9 |
| Total non-current assets | 19,150.6 | 17,681.8 | |
| B – CURRENTS ASSETS | |||
| 1. Inventories | 20 | 106.4 | 83.0 |
| 2. Trade receivables | 21 | 2,123.4 | 2,358.3 |
| of which: related parties | 344.4 | 333.2 | |
| 3. Current financial assets | 18 | 384.1 | 255.3 |
| 4. Cash and cash equivalents | 22 | 1,378.2 | 2,155.1 |
| of which: related parties | 0.1 | 0.1 | |
| 5. Income tax assets | 23 | 4.8 | 6.8 |
| 6. Other current assets | 19 | 213.4 | 191.9 |
| Total current assets | 4,210.3 | 5,050.4 | |
| C – Discontinued operations and assets held for sale | 30 | 85.0 | 70.7 |
| TOTAL ASSETS | 23,445.9 | 22,802.9 | |
| (€m) | |||
| NOTE | AT 31 DECEMBER 2023 | AT 31 DECEMBER 2022 | |
|---|---|---|---|
| D – EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT | |||
| 1. Share capital | 442.2 | 442.2 | |
| 2. Other reserves | 1,836.6 | 1,875.2 | |
| 3. Retained earnings/(accumulated losses) | 3,390.5 | 3,180.9 | |
| 4. Interim dividend | (230.3) | (213.3) | |
| 5. Profit for the year | 885.4 | 857.0 | |
| Total equity attributable to owners of the Parent | 24 | 6,324.4 | 6,142.0 |
| E – EQUITY ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 24 | 18.9 | 27.1 |
| Total equity attributable to owners of the Parent and non-controlling interests | 6,343.3 | 6,169.1 | |
| F – NON-CURRENT LIABILITIES | |||
| 1. Long-term borrowings | 25 | 9,369,221,337 | 8,372,355,904 |
| 2. Employee benefits | 26 | 9,409.2 | 8,416.7 |
| 3. Provisions for risks and charges | 27 | 151.8 | 140.8 |
| 4. Non-current financial liabilities | 25 | 164.5 | 247.2 |
| 5. Other non-current liabilities | 28 | 948.3 | 971.4 |
| Total non-current liabilities | 10,723.6 | 9,824.5 | |
| G – CURRENT LIABILITIES | |||
| 1. Short-term borrowings | 25 | 1,201.7 | 444.1 |
| 2. Current portion of long-term borrowings | 25 | 1,384.6 | 1,909.3 |
| 3. Trade payables | 29 | 2,864.9 | 3,687.7 |
| of which: related parties | 66.5 | 60.9 | |
| 4. Tax liabilities | 29 | 809.4 | 669.9 |
| 5. Current financial liabilities | 29 | 113.8 | 44.9 |
| of which: related parties | 0.1 | ||
| 6. Other current liabilities | 25 | 809.4 | 669.9 |
| of which: related parties | 34.3 | 22.7 | |
| Total current liabilities | 6,374.4 | 6,799.7 | |
| H – Liabilities related to discontinued operations and assets held for sale | 30 | 4.6 | 9.6 |
| TOTAL LIABILITIES AND EQUITY | 23,445.9 | 22,802.9 | |
Consolidated statement of changes in equity
31 December 2022 – 31 December 2023
Group’s share capital and reserves
| (€m) | |||||||||||||
| SHARE CAPITAL | LEGAL RESERVE | SHARE PREMIUM RESERVE | CASH FLOW HEDGE RESERVE | RESERVE FOR TREASURY SHARES | RESERVE FOR EQUITY INSTRUMENTS – PERPETUAL HYBRID BONDS | OTHER RESERVES | RETAINED EARNINGS (ACCUMULATED LOSSES) | INTERIM DIVIDEND | PROFIT FOR THE YEAR ATTRIBUTABLE TO OWNERS OF THE PARENT | EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT | EQUITY ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT AND NON-CONTROLLING INTERESTS | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EQUITY AT 31 DECEMBER 2022 | 442.2 | 88.4 | 20.0 | 81.1 | (29.5) | 989.0 | 762.2 | 3,180.9 | (213.3) | 857.0 | 6,142.0 | 27.1 | 6,169.1 |
| PROFIT FOR THE YEAR | 885.4 | 885.4 | (2.6) | 882.8 | |||||||||
| OTHER COMPREHENSIVE INCOME: | |||||||||||||
| – Change in fair value of cash flow hedges | (37.6) | (37.6) | (37.6) | ||||||||||
| – Actuarial gains/(losses) on employee benefits | 3.5 | (3.5) | (3.5) | ||||||||||
| – Gains/(Losses) from translation of financial statements in currencies other than the euro | 11.5 | 11.5 | 0.2 | 11.7 | |||||||||
| – Financial assets at fair value through other comprehensive income | 1.0 | 1.0 | 1.0 | ||||||||||
| – Cost of hedges | 0.2 | 0.2 | 0.2 | ||||||||||
| Total other comprehensive income | (37.4) | (2.5) | 11.5 | (28.4) | 0.2 | (28.2) | |||||||
| COMPREHENSIVE INCOME | (37.4) | (2.5) | 11.5 | 885.4 | 857.0 | (2.4) | 854.6 | ||||||
| TRANSACTIONS WITH SHAREHOLDERS: | |||||||||||||
| – Appropriation of profit for 2022: | |||||||||||||
| Retained earnings | 225.0 | (225.0) | – | ||||||||||
| Dividends | 213.3 | (632.0) | (418.7) | (5.8) | (424.5) | ||||||||
| – Interim dividend 2023 | (230.3) | (230.3) | (230.3) | ||||||||||
| – Purchase of treasury shares | (0.3) | (0.3) | (0.3) | ||||||||||
| Total transactions with shareholders | (0.3) | 225.0 | (17.0) | (857.0) | (649.3) | (5.8) | (655.1) | ||||||
| Share option reserve | 0.2 | 0.2 | 0.2 | ||||||||||
| Coupon payable to holders of hybrid bonds | (23.8) | (23.8) | (23.8) | ||||||||||
| Other changes | 1.4 | (3.1) | (1.7) | (1.7) | |||||||||
| Total other changes | 1.6 | (26.9) | (25.3) | (25.3) | |||||||||
| EQUITY AT 31 DECEMBER 2023 | 442.2 | 88.4 | 20.0 | 43.7 | (29.8) | 989.0 | 725.3 | 3,390.5 | (230.3) | 885.4 | 6,324.4 | 18.9 | 6,343.3 |
31 December 2021 – 31 December 2022
Group’s share capital and reserves
| (€m) | |||||||||||||
| SHARE CAPITAL | LEGAL RESERVE | SHARE PREMIUM RESERVE | CASH FLOW HEDGE RESERVE | RESERVE FOR TREASURY SHARES | RESERVE FOR EQUITY INSTRUMENTS – PERPETUAL HYBRID BONDS | OTHER RESERVES | RETAINED EARNINGS (ACCUMULATED LOSSES) | INTERIM DIVIDEND | PROFIT FOR THE YEAR ATTRIBUTABLE TO OWNERS OF THE PARENT | EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT | EQUITY ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT AND NON-CONTROLLING INTERESTS | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EQUITY AT 31 DECEMBER 2021 | 442.2 | 88.4 | 20.0 | (141.6) | (19.5) | – | 736.1 | 2,964.3 | (197.4) | 789.4 | 4,681.9 | 31.1 | 4,713.0 |
| PROFIT FOR THE YEAR | 857.0 | 857.0 | 0.7 | 857.7 | |||||||||
| OTHER COMPREHENSIVE INCOME: | |||||||||||||
| – Change in fair value of cash flow hedges | 223.3 | 223.3 | 223.3 | ||||||||||
| – Actuarial gains/(losses) on employee benefits | (10.4) | (10.4) | (10.4) | ||||||||||
| – Gains/(Losses) from translation of financial statements in currencies other than the euro | 36.2 | 36.2 | (1.3) | 34.9 | |||||||||
| – Financial assets at fair value through other comprehensive income | (4.4) | (4.4) | (4.4) | ||||||||||
| – Cost of hedges | 0.6 | 0.6 | 0.6 | ||||||||||
| Total other comprehensive income | 222.7 | (14.8) | 36.2 | 244.1 | (1.3) | 242.8 | |||||||
| COMPREHENSIVE INCOME | 222.7 | (14.8) | 36.2 | 857.0 | 1,101.1 | (0.6) | 1,100.5 | ||||||
| TRANSACTIONS WITH SHAREHOLDERS: | |||||||||||||
| – Appropriation of profit for 2021: | |||||||||||||
| Retained earnings | (204.3) | (204.3) | – | ||||||||||
| Dividends | 197.4 | (585.1) | (387.7) | (3.4) | (391.1) | ||||||||
| – Interim dividend 2022 | (213.3) | (213.3) | (213.3) | ||||||||||
| – Purchase of treasury shares | (10.0) | (10.0) | (10.0) | ||||||||||
| Total transactions with shareholders | (10.0) | 204.3 | (15.9) | (789.4) | (611.0) | (3.4) | (614.4) | ||||||
| Change in scope of consolidation | (1.7) | (1.7) | (1.7) | ||||||||||
| Equity instruments – Perpetual hybrid bonds | 989.0 | 989.0 | 989.0 | ||||||||||
| Share option reserve | 5.8 | 5.8 | 5.8 | ||||||||||
| Coupons payable to holders of hybrid bonds | (21.1) | (21.1) | (21.1) | ||||||||||
| Other changes | (0.9) | (1.1) | (2.0) | (2.0) | |||||||||
| Total other changes | 989.0 | 4.9 | (23.9) | 970.0 | 970.0 | ||||||||
| EQUITY AT 31 DECEMBER 2022 | 442.2 | 88.4 | 20.0 | 81.1 | (29.5) | 989.0 | 726.2 | 3,180.9 | (213.3) | 857.0 | 6,142.0 | 27.1 | 6,169.1 |
Consolidated statement of cash flows
| (€m) | |||
| NOTE | 2023 | 2022 | |
|---|---|---|---|
| PROFIT FOR THE YEAR | 882.8 | 857.7 | |
| ADJUSTED BY: | |||
| Amortisation, depreciation and impairment losses /(reversals of impairment losses) on non- current property, plant and equipment and intangible assets* | 6 | 775.7 | 736.1 |
| Accruals to provisions (including provisions for employee benefits) and impairment losses | 53.7 | 51.7 | |
| (Gains)/Losses on sale of property, plant and equipment | (18.0) | (6.9) | |
| Financial (income)/expenses | 8 | 118.8 | 101.5 |
| Income tax expense | 366.0 | 356.7 | |
| Other non-cash movements | 5.2 | (24.1) | |
| CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN NET WORKING CAPITAL | 2,184.2 | 2,072.7 | |
| Increase/(decrease) in provisions (including provisions for employee benefits and taxation) | (44.2) | (36.9) | |
| Increase)/decrease in inventories | 3.1 | (20.7) | |
| (Increase)/decrease in trade receivables and other current assets | 227.5 | 285.9 | |
| Increase/(decrease) in trade payables and other current liabilities | (664.9) | 604.8 | |
| Increase/(decrease) in other non-current liabilities | (25.7) | (126.1) | |
| (Increase)/decrease in other non-current assets | (6.4) | 14.7 | |
| Interest income, dividends and other financial income received | 107.2 | 64.2 | |
| Interest expense and other financial expenses paid | (261.9) | (154.8) | |
| Income tax paid | (434.0) | (380.1) | |
| CASH FLOW FROM OPERATING ACTIVITIES [A] | 988.7 | 2,351.7 | |
| – of which: related parties | 6.0 | (26.6) | |
| Capital expenditure in non-current property, plant and equipment after grants received | 13 | (2,048.8) | (1,492.3) |
| Revenue from sale of non-current property, plant and equipment and intangible assets and other movements | 19.4 | 15.6 | |
| Capitalised financial expenses | (216.2) | (212.4) | |
| Capital expenditure in non-current intangible assets after grants received | 15 | (2.9) | 2.4 |
| (Increase)/decrease in investments in associates and joint ventures | 17 | (2.9) | 2.4 |
| Movements in short- and medium/long-term financial investments | (118.4) | (350.5) | |
| Consideration paid for new acquisitions net of cash | (15.8) | – | |
| Proceeds collected from the sale of companies | – | 157.0 | |
| CASH FLOW FOR INVESTING ACTIVITIES [B] | (2,334.4) | (1,855.4) | |
| of which: related parties | (18.2) | 19.2 | |
| Movement in the reserve for treasury shares | 24 | (7.0) | (10.0) |
| Movement in the reserve for equity instruments | 24 | – | 989.0 |
| Dividends paid | (671.5) | (595.8) | |
| Movements in short- and medium/long-term financial liabilities (including short-term portion)** | 1,142.8 | (289.0) | |
| Increase/(decrease) in retained earnings and accumulated losses | 24 | – | (1.7) |
| CASH FLOW FROM FINANCING ACTIVITIES [C] | 464.3 | 92.5 | |
| INCREASE/(DECREASE) IN CASH AND EQUIVALENTS [A+B+C] | (785.2) | 560.8 | |
| Cash and cash equivalents at beginning of year | 2,167.0 | 1,606.2 | |
| Cash and cash equivalents at end of year*** | 1,381.8 | 2,167.0 | |
| – of which cash and cash equivalents from acquisitions | 0.3 | – | |
*After grants related to assets recognised in the income statement for the year.
**After derivatives and impact of fair value adjustments, including cash movements in right-of-use assets.
***Of which, at 31 December 2023, “Cash and cash equivalents” of €1,378.2 million and “Cash and cash equivalents attributable to assets held for sale” of €3.6 million and, at 31 December 2022, “Cash and cash equivalents” of €2,155.1 million and “Cash and cash equivalents attributable to assets held for sale” of €11.9 million.
TERNA S.p.A. - Share Capital € 442.198.240 fully paid-up Legal Office in Italy, Viale Egidio Galbani, 70 - 00156 Rome Tel +39 06 83138111 Business Register of Rome, Tax Code and VAT Number 05779661007 - R.E.A. of Rome 922416 - info@pec.terna.it