2010 was a year that stood out not only for the reliability of the national power transmission grid and the continued investments forecast by the grid development plan, but also for the action taken to increase the efficiency of dispatching. It was these latter efforts in particular that have allowed us to achieve the high target for incentives, which was measured in consolidated and financial statements at fair value, in view of the three-year duration of the incentives mechanism.
The Group has also been involved in developing the photovoltaic project, which culminated in the signing of a preliminary sales contract between Terna, SunTergrid and Terra Firma Investments (GP) 3 Limited, whereby the entire share capital of Rete Rinnovabile S.r.l. was transferred. The effect on the 2010 consolidated income statement, booked as the contract margin in terms as compared with total costs sustained during the year, on the basis of works progress, amounts to € 147 million.
This event entailed the classification of the balances relating to the company RTR S.r.l. and its subsidiary Valmontone Energia S.r.l. into the item “Discontinued Operations and Assets Held for Sale” of the consolidated Statement of financial position and to item “Profit from discontinued operations and assets held for sale” of the consolidated income statement.
We should also point out the acquisition of the portion of the NTG of Reti Trasmissione Energia Elettrica ASM S.r.l.
(“Retrasm”) by A2A S.p.A., which further strengthened the property of Terna in terms of kilometres of grid (NTG) and related remuneration. The figures discussed below have been drawn from the reclassified statements included in the section “Group performance and financial position” of this report, taken from the consolidated financial statements as described in the notes to the reclassified statements.

Consolidated Group results

The consolidated financial statements as at and for the year ended 31 December 2010 show a profit for the year of € 613.6 million, entirely attributable to the owners of the Parent. It includes € 466.7 million relating to the profit from continuing operations and € 146.9 million to the profit from discontinued operations and assets held for sale.

consolidate group result

Revenue amounts to approximately € 1,589.2 million, of which € 1,306.3 million relates to the transmission payment and note an increase of € 199 million (+14.3%) on 2009. More specifically, the transmission fee refers to the Parent for a total of around € 1,173 million and to the subsidiary TELAT for approximately € 133.3 million.


Operating expenses amounted to about € 414.3 million, of which € 212.2 million relating to personnel expense and € 152.2 million to services. EBITDA (gross operating profit) stands at € 1,174.9 million, showing an increase of € 171.7 million (+17.1%) on the € 1,003.2 million recorded for 2009. The subsidiary TELAT contributes for € 137 million.

The EBITDA margin goes from 72.2% for 2009 (70.2% without considering the effects of the release of the energy discount fund) to 73.9% for 2010.


EBIT (operating profit) amounted to about € 814.4 million, after depreciation and amortisation charges of € 360.5 million, of which € 318.8 million recorded by the Parent and € 41.7 million by the subsidiary TELAT.

Financial expense for the period, with a negative balance of € 102.5 million, almost entirely attributed to the Parent, records a reduction of € 45.8 million (-30.9%) on 2009.

Income taxes for the year totalled € 245.2 million, of which € 230.5 million attributable to the Parent, for an effective tax rate of 34.4%.

Profit from continuing operations stands at € 466.7 million, up € 112.7 million (+31.8%) on the € 354 million recorded for 2009.

Total net invested capital, amounting to € 7,709.5 million, is covered by equity for € 2,760.8 million and by total net financial debt for € 4,948.7 million.

Net invested capital in continuing operations amounts to € 7,310.7 million as compared with effective net financial debt of € 4,722.4 (1) million.

Net invested capital

The debt/equity ratio (effective net financial debt of continuing operations/equity) settles at 1.71.

Total investments made in core business by the Group during the year amount to € 1,161.7 million (of which € 1,103.4 million refer to property, plants and machinery), up 29.8% on the € 894.7 million recorded for 2009.

Profit from discontinued operations and assets held for sale

Profit from discontinued operations and assets held for sale settles at €146.9 million and mainly refers to the optimisation of the margin on photovoltaic plants operating and under construction at 31 December 2010, net of the tax effect, on the basis of contractual conditions defined in the preliminary sales agreement for the subsidiary RTR, and with specific reference to the enterprise value. Last year instead included the result achieved with the sale of the Brazilian subsidiaries, totalling € 417 million.

Discontinued operations and assets held for sale include net invested capital of € 398.8 and effective financial debt of € 226.3 million, including the net financial liability of RTR to Terna S.p.A.