We are one of Europe's leading electricity transmission grid operators.

We manage the high-voltage Italian transmission grid, one of the most modern and technologically advanced in Europe. We play a central role in driving the ecological transition, guaranteeing the secure and efficient supply of energy to households and businesses.

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NEW ALL-TIME HIGH SHARE PRICE recorded on 19 August 2021

Terna's share price

€6.136 per share at 30 September 2021 versus €5.974 per share at 30 September 2020

EMPLOYEES at 30 September 2021 4,996

Financial highlights

About Terna

The Terna Group is the owner of the Italian national transmission grid for high and extra-high voltage power and is the largest independent electricity transmission system operator in Europe.

In our role as Transmission Operator, we conduct grid planning, development and maintenance

activities, bringing together expertise, technology and innovation to optimise high-voltage electricity transmission. In operating the electricity system, we ensure that power supply and demand are balanced 24 hours a day throughout Italy, managing energy flows through the grid as a provider of "dispatching" and fulfilling the role of System Operator for Italy's electricity system.

We have a public service role, crucial to ensuring the country's power supply and maintaining a balanced and secure electricity system.

We operate as a monopoly under the regulatory framework defined by the Italian Regulatory Authority for Energy, Networks and the Environment (ARERA) and in implementation of the guidelines established by the Italian Ministry for Economic Development. Listed on the Italian Stock Exchange since 2004 and with a free float of around 70%, Terna is a company that focuses on efficiency, profitability and performance, as our results show.

What we do

The ecological transition we are going through will radically change the face of the electricity system. As transmission and system operators, located in Italy and the heart of Europe, we are working to bring about all aspects of this transformation. This is why our Industrial Plan is based around sustainable investment in the national transmission grid (€8.9 billion over the five years between 2021 and 2025), which will, among other things, enable us to boost transmission capacity between the different market areas and increase cross-border connections.

Our Regulated Activities represent approximately 86% of our business.

We also conduct Non-regulated Activities to support the ecological transition as an energy solutions provider. Through our International Activities, we also export our expertise and technological know-how, developed in Italy, making it available to international operators for the development of electricity grids and the management of complex systems, transmission, the integration of renewable sources and storage systems.

Terna and the Covid-19 emergency

Almost two years on from the beginning of the Covid-19 pandemic, despite Italy's continuing health emergency, there are strong indications that the country is on the road to recovery, supported by the large-scale vaccination programme launched in March.

By October 2021, approximately 80% of the Italian population is fully vaccinated, making Italy one of the most successful countries in managing this phase of the health emergency.

Whilst, in general, there are ongoing concerns linked to the spread of different variants of the virus, resulting in continued application of all the safety measures adopted since February 2020, the number of the Company's personnel who have safely returned to work is growing. An average of 40% of administrative staff came into work each day in the third quarter of 2021, with the remaining 60% continuing to work from home. This latter arrangement has been extended in line with the measures introduced by the relevant authorities.

Key events in the third quarter of 2021 include an initiative designed to improve the worklife balance of our personnel. This has involved the adoption of a hybrid model, with Terna expanding the number of physical workstations offering an alternative for people who would otherwise have to work from home. The initiative has led to the opening of two Remote Working Hubs, which can be booked via the Company's intranet or directly from a company smartphone using the dedicated app.

In July, the effectiveness of the measures adopted by Terna to prevent and mitigate the spread of infections caused by biological agents, in order to protect human health, resulted in our Rome headquarters receiving certification of its Management System for the Prevention and Control of Infections, in accordance with the Biosafety Trust Certification standards published by the certification body, RINA. More generally, at this stage of the pandemic, Terna is focusing on two distinct areas.

On the one hand, we are proceeding with the internal Sicuri Insieme ("Safe Together") campaign. As well as maintaining the spotlight on prevention through awareness and information initiatives, in September the range of free services offered to employees was expanded, with the addition of serological testing at work in order to determine the level of antibodies developed by fully vaccinated personnel. During the third quarter of 2021, the first 650 serological tests were carried out at the Rome office. Free molecular tests continue to be available, with approximately 1,200 carried out in the third quarter of 2021.

On the other hand, the most important contribution to establishing new ways of working in the New Normal post-Covid was provided by the progressive rollout of the NexTerna project, the cultural transformation announced to the market when we presented our "2021-2025 Industrial Plan" last November 2020. The project aims to reshape the way we work by harnessing the potential offered by new technologies and the growing digitalisation of processes in order to boost workforce involvement, enhance employees' sense of responsibility and ensure a sustainable work-life balance. Week-by-week updates on the initiative are published on the special portal, accessible from the Company's intranet.

Finally, the fifth edition of Next Energy got underway in September 2021. The initiative, promoted by Terna, the Cariplo Foundation and the Cariplo Factory in order to open up opportunities for recent graduates, new start-ups and innovative businesses with highpotential, is this year focusing on the search for "Smart Office" and "Smart Collaboration" solutions that could be used to help achieve the goals behind the NexTerna project.

The energy transition

Terna and its investment strategies have a crucial role to play in managing the radical transformation needed to decarbonise consumption

We are living through a period of great complexity: the planet is growing at an increasingly rapid rate with an energy model that is no longer sustainable and the world is crying out for a global commitment to progressive decarbonisation, to be achieved as quickly as possible. In this context, the electricity sector has a central role to play thanks to the intrinsic efficiency of electricity as an energy carrier and the technological maturity of renewable energy sources, which are expected to add a further 40 GW of installed capacity by 2030. The national electricity system is evolving from a centralised to an integrated, distributed model: until 2000, we dispatched energy from just over 800 power plants; now, there are 800,000 plants operating in Italy, a figure that is due to rise to one million in the near future. A key role in handling this transformation is being played by new digital technologies that allow data to be gathered and big data flows to be effectively and rapidly transferred, stored and analysed.

The challenges

Italy has produced an Integrated Energy and Climate Plan (PNIEC), setting out the country's objectives and approach in combatting climate change. The PNIEC aims to cut emissions by 55% by 2030. However, the switch to a decarbonised energy scenario, allied with the growing intensity of extreme weather events in recent years, means that transmission system operators (TSOs) are faced with a series of challenges in order to effectively deliver on the ecological transition, whilst maintaining existing levels of service quality and avoiding an excessive increase in costs for the community.

The challenges faced by Terna in ensuring the energy transition result from the following factors:

the non-programmable nature of renewable sources: the intermittency of wind production, in particular, makes dispatching activities more difficult;
renewable sources are concentrated in the south of the country, whilst demand is greater in the north. This requires solutions to problems of congestion, improved integration of renewable sources with the grid and an upgrade of the South-North backbone;
changes in the scenario (an increase in renewable energy sources or "RES", the decommissioning of thermoelectric plants, climate change). The latter is already having a major effect on the ability of a TSO such as Terna to manage the grid, given our delicate task of balancing supply and demand at all times, whilst ensuring that consumers have secure, continuous and reliable access to electricity. These pressures are due to have an even greater impact in the future;
the structural characteristics of the Italian electricity grid. As a result of the country's geography (minimal potential for interconnections with the rest of continental Europe, limitations on transmission capacity between the north and south of Italy and the islands), management of the electricity system under these new conditions will be even more complicated and the above problems will be amplified.

Terna's role: driving the transformation

In this new scenario, Terna has the key role of driving the current transformation, by both enabling the electricity market's transition towards renewable sources, and as an increasingly strategic leader of this major transition process. The electricity grid is in fact the principal enabling factor in achieving international decarbonisation targets, as the decommissioning – albeit gradual – of coal-fired power stations, accompanied by the growing penetration of renewable sources, will make one of the most important contributions to their achievement. The production of energy from fossil fuels is one of the main sources of greenhouse gas emissions from human activity (including CO2), which is recognised as the cause of major impacts on the environment and the climate. This includes the increase in the global average temperature and the intensification of catastrophic natural events.

In our role as a driver of this increasingly complex system, our Group continues to invest in delivering a more modern, efficient, secure, flexible and sustainable electricity grid, focusing on the key aspects of managing the system: security, adequacy, quality of service, resilience and efficiency.

8 TERNA GROUP | CONSOLIDATED INTERIM FINANCIAL REPORT - 30 SEPTEMBER 2021

We are focusing on four areas of intervention that have a role to play in achieving decarbonisation targets.

markets

In this regard, the 2021-2025 Strategic Plan is our response to the exceptional challenge we face. The Plan marks a further acceleration of investment in infrastructure in order to enable the ecological transition: we will invest a record €8.9 billion in Italy's electricity infrastructure with an approach that combines sustainability with the development of skills and innovation. Under our national Development Plan, over the next 10 years we will invest €18 billion in the Italian grid, as part of the €1 trillion expected to be invested across Europe as part of the Green New Deal.

Partnerships: together for the transition

Terna's commitment to driving the ecological transition also takes the shape of efforts to encourage ever closer strategic cooperation with government institutions, businesses and associations

LT S.r.l.: latest acquisition in the photovoltaic plant maintenance sector

On 12 October 2021, Terna, through its subsidiary, Terna Energy Solutions S.r.l., completed the acquisition of a 75% stake in LT S.r.l., one of the leading Italian providers of photovoltaic maintenance services. The acquired company also designs and delivers revamping and repowering projects for existing plants and builds new plants for third-party customers. The agreement confirms Terna's role as a driver and enabler of the energy transition through constant support for the growth of renewable sources.

Digital Terna Incontra events to consult on the West Link section of the Tyrrhenian Link

Between 29 September and 6 October 2021, a series of digital Terna Incontra events were organised for members of the public in Sardinia and Sicily to give their views on the western section of the Tyrrhenian Link, a new energy corridor at the heart of the Mediterranean. At 950 km in length and providing capacity of 1,000 MW, the infrastructure is of international importance, bringing us closer to a more sustainable energy future.

United Nations Global Compact CFO Taskforce: investing in sustainable development

On 20 September 2021, Terna signed up to the United Nations Global Compact CFO Taskforce, which has committed to investing over US\$500 billion globally over the next 5 years in order to the achieve the UN's SDGs (Sustainable Development Goals), covering issues such as renewable energy, health, food and agriculture, access to water and gender equality.

Terna takes part in the 43rd ANDAF Congress on the energy transition

On 20 September 2021, the Company's CEO, Stefano Donnarumma, was in Genoa to attend the 43rd Congress of ANDAF, the National Association of Chief Financial Officers, where he stressed the strategic importance of grids for the energy transition. The newly elected president of ANDAF, Agostino Scornajenchi, Terna's CFO, set out the challenges for chief financial officers who have a key role to play in the strategic management of complex projects.

10 TERNA GROUP | CONSOLIDATED INTERIM FINANCIAL REPORT - 30 SEPTEMBER 2021

On 14 September 2021, the first cycle of Terna Incontra events in the towns in Abruzzo and Marche to be affected by the Adriatic Link came to an end. The new submarine power line, which will be approximately 285 km long and completely invisible, will link the Marche and Abruzzo regions. Between 6 and 14 September, Terna presented the design for the new infrastructure, in which we will invest over €1 billion, to members of the public in the Abruzzo towns of Montesilvano, Città Sant'Angelo, Cappelle sul Tavo, Spoltore and Cepagatti (in the province of Pescara) and Silvi (in the province of Teramo) and the Marche towns of Fano and Cartoceto, both located in the province of Pesaro and Urbino.	A submarine power line linking the Marche and Abruzzo regions. Terna Incontra for the Adriatic Link
On 10 September 2021 saw the opening in Salonika, in Greece, of the Southeast Electricity Network Coordination Centre (SEleNe CC), with the aim of boosting energy cooperation in south-eastern Europe in relation to a series of activities linked to management of the electricity system, such as the calculation of transmission capacity, coordinated security assessments and the evaluation of supranational adequacy. SEleNe CC is jointly owned by Terna and the other three TSOs in the area of south-eastern Europe: Greece (IPTO Independent Power Transmission Operator), Bulgaria (Electricity System Operator (ESO) EAD) and Romania (Transelectrica S.A.).	SEleNe CC, the Southeast Electricity Network Coordination Centre opens
On 15 July 2021, the Equigy project, a crowd balancing platform based on blockchain technology that aims to facilitate the participation of new production units in the system, was launched.	A new blockchain platform to support the energy transition
On 12 July 2021, the TSOs from Austria, Belgium, France, Germany, Italy, the Netherlands, Spain and Switzerland published the paper "Decarbonising the energy system". This is the first integrated, shared plan for meeting Europe's ambitious decarbonisation targets. Essential components of the TSO's plan regard reductions in their carbon footprint and the development of transmission infrastructure that will enable the integration of renewables and support the electrification of consumption.	European TSOs join forces to achieve Europe's decarbonisation targets

Highlights

On 7 July 2021, Terna presented the 2021 Development Plan for the national transmission grid. As part of the post-Covid National Recovery and Resilience Plan (NRRP), we will be called on to plan, authorise and deliver an investment programme without precedent in Italy's recent history. It is imperative that we are able to identify rapid and effective solutions in order to meet our decarbonisation targets, which will include making use of the funds made available by the European Union.

This has led Terna to further accelerate investment in projects that are key to the future of the electricity system, with capital expenditure due to exceed €18 billion over the next ten years.

A total of 38 km of new power lines entered service, 11 electricity substations were built and/or enlarged and a further 2 substations were purchased in the first nine months of 2021.

AWARDS AND SUSTAINABILITY

Terna was included in the Stoxx Global ESG Leaders sustainability index for the eleventh year running, marking international recognition for our excellent performance across all areas of assessment, above all with regard to environmental, social and governance matters.

Terna has been included in the MIB 40 ESG, the first blue-chip index in Italy based on best ESG practices.

In September and November 2021, Terna received recognition as "Italy's Best Employer 2022" and "World's Best Employer 2021" in the energy sector and the utilities category, respectively. The Group was ranked the best employer in the world following a survey conducted by Forbes in partnership with the international research company, Statista.

FINANCE

On 8 June, the Euro Medium Term Note (EMTN) Programme was renewed and increased to €9 billion.

On 16 June, a new green bond worth €600 million was issued. The bonds have a term of eight years and pay an effective interest rate of 0.398%.

On 13 July, a new loan of €300 million was obtained from the European Investment Bank. The loan has a term of approximately 22 years.

On 16 July, Terna launched our first Commercial Paper Programme. The programme has a duration of three years and aims to raise up to €1 billion.

On 29 October S&P Global Ratings has upgraded Terna S.p.A.'s outlook from stable to positive.

BUSINESS ENABLERS

OUR PEOPLE

261 personnel added in the first nine months of 2021 in implementation of the investment programme including in the Driving Energy Industrial Plan for the period 2021-2025.

The Next Energy 5 project was launched in September with the aim of boosting the role of innovation as a change enabler and in consolidating the "New normal".

Structure of the Group

The structure of the Terna Group at 30 September 2021 is shown below.

Compared with 31 December 2020:

* On 26 January 2021, Terna, acting through its subsidiary, Terna Energy Solutions S.r.l., completed the acquisition of the remaining 30% of Avvenia the Energy Innovator S.r.l. from the minority shareholder, Avvenia S.r.l.. Avvenia the Energy Innovator S.r.l. has thus become a "sole shareholder" company wholly owned by Terna.
** On 1 February 2021, after APG (the Austrian TSO) became the fifth European transmission system operator to enter into partnership with Equigy, Terna S.p.A.'s interest in Equigy decreased from 25% to 20%.
*** The reorganisation of the Brugg Group, designed to take full advantage of the group's distinctive expertise in terrestrial cables and of synergies with the Terna Group's businesses, was completed on 31 March 2021. As a result, Terna S.p.A.'s interest in the Brugg Group has increased from 90% to 92.6%.
**** On 10 June 2021, Terna, acting through its subsidiaries, Terna Plus S.r.l. and Terna Chile S.p.A., completed the acquisition of the remaining 25% interest in the Brazilian-registered company, SPE Transmissora de Energia Linha Verde II S.A., held by the minority shareholder, Construtora Quebec. SPE Transmissora de Energia Linha Verde II S.A. is now 99.9999994% owned by Terna Plus S.r.l., with the remaining shares held by Terna Chile S.p.A..
***** Terna completed the acquisition of a 100% stake in EL.IT.E. S.p.A. on 27 July 2021. The acquired company was simultaneously renamed Elite S.r.l., a vehicle company that owns and manages (under a service agreement entered into with Repower) the approximately 4-km long 150kV merchant line connecting Italy and Switzerland between Tirano and Campocologno. The company also currently owns the Tirano electricity substation, in addition to the 150kV cable connection between the TIRANO ST electricity substation and the Italian border with the related tunnel section.
****** On 5 August 2021, Terna, acting through its subsidiary, Terna Energy Solutions S.r.l., completed the acquisition of the remaining 30% of Tamini Trasformatori S.r.l., which as a result is now a sole shareholder company fully owned by Terna.

On 3 August 2021, Terna, acting through its subsidiary, Terna Energy Solutions S.r.l., completed the sale of 100% stakes in Rete Verde 17 S.r.l., Rete Verde 18 S.r.l., Rete Verde 19 S.r.l. and Rete Verde 20 S.r.l. to Banca del Fucino, the purchaser chosen following a competitive auction.

On 15 September 2021, Terna, pursuant to Law 99/2009, completed the sale of its 100% stake in Resia Interconnector S.r.l. to Interconnector Energy Italia S.c.p.A., Consorzio Toscana Energia S.p.A. and VDP Fonderia S.p.A., entering into agreements for the construction and operation of the private part, located in Italian territory, of the alternating current power line between Italy and Austria.

INTRODUCTION The Terna Group's consolidated interim financial report for the nine months ended 30 September 2021, which has not been audited, has been prepared on a voluntary basis, pursuant to art. 82-ter of the CONSOB's Regulations for Issuers (as amended by CONSOB Resolution 19770

of 26 October 2016).

The Group's strategy 19 The Company and our strategy 20

Outlook	24
Our people	26
Innovation	30

The energy environment	35
Electricity demand and production in Italy	36

The Group's business	39
Regulated Activities	40
Non-regulated Activities	48
International Activities	52

	39
	40
	48
	52

Performance	55
Financial review for the first nine months of 2021	56
Terna's shares	66
Declaration of the manager responsible for financial reporting in accordance with paragraph 2 of art. 154-bis of Legislative Decree 58/1998	69

55
56

Annexes	71
Alternative performance measures (APMs)	72
Other information	73

The ecological transition is an obligatory, irreversible process. Reinforcing our central role in driving and enabling this transition is the aim of our Industrial Plan. Between 2021 and 2025, we will invest a record €8.9 billion in regulated assets in Italy. Our capital expenditure has a major multiplier effect in terms of both GDP growth and job creation, thus making a decisive contribution to Italy's post-Covid-19 recovery.

ecologicaltransition #TernaPlan #DrivingEnergy

1 The Group's strategy

The Company and our strategy

The growing presence of renewable energy plants (intermittent sources of energy, not as flexible as traditional power plants and sometimes far away from centres of consumption, result in an increase in grid congestion, especially on sections connecting the south with the north), and the growing frequency of extreme climate events, allied with the structural nature of the Italian transmission grid, puts major demands on the TSO, which is called on to protect and manage the national grid in order to keep guaranteeing the security of electricity supply.

	The Group's strategy		The energy environment			The Group's business		Performance		Annexes

Under Terna's approach, ensuring that the ecological transition provides the necessary security will require investment in the grid, the installation of renewable energy sources and storage systems, providing additional storage capacity for electricity that will allow the system to operate and minimize overgeneration.

With specific regard to investment in the grid, Terna's Plan focuses on efforts to significantly accelerate sustainable investment, the integration of non-programmable renewable sources and the strengthening of system security and resilience, thereby supporting the ecological transition and the phase-out of coal. The aim of this strategy is to resolve grid congestion and upgrade the transmission backbones that play an essential role in linking places of production with consumption. This goal will be achieved by reinforcing connections between the north and south of the country and with the islands, and by boosting cross-border interconnection capacity. To achieve this, the Terna Group plans to invest a total of €9.2 billion over the next five years.

In terms of Regulated Activities, which continue to represent the Group's core business, Terna plans to invest €8.9 billion, a record level of investment for Italy and up 22% compared with the target of €7.3 billion set in the previous Plan. This investment will bring major benefits for the entire system, well beyond their initial cost, and will focus on developing, modernising and strengthening the national transmission grid, confirming Terna's role as the enabler of an increasingly complex, sustainable and technologically advanced electricity system. In addition, 95% of this investment is classifiable as green under the criteria used in the EU Taxonomy currently being devised.

The most important projects include the Tyrrhenian Link, which will contribute to the decarbonisation of Sardinia, integrating different market areas with major benefits in terms of efficiency; the power line that will link the Colunga zone (Bologna) with the Calenzano zone (Florence), significantly boosting exchange capacity between south-central and north-central Italy; the power line that will connect southern and northern Sicily between Chiaramonte Gulfi (Ragusa) and Ciminna (Palermo), improving the quality and continuity of electricity supply in the region; and SA.CO.I.3, a crucial interconnector linking Sardinia, Corsica and Tuscany.

As a result of this investment, based on the current projections contained in the Plan, the value of our regulated asset base (RAB) will rise to €21.8 billion in 2025, with a CAGR of 6% over the life of the Plan, a significant increase compared with the previous Plan.

Non-regulated Activities will focus on the development of innovative, digital solutions to support the ecological transition, fully in line with the Group's core business. These activities include Energy Solutions (services for high-voltage infrastructure and smart grids, and energy efficiency services offered through Avvenia), Connectivity (the offer of connectivity, dark fibre and housing and hosting services for telecommunications providers) and Manufacturing (the production of power transformers and terrestrial cables carried out by Tamini and Brugg, whose growth will help to drive efficient delivery of Terna's existing strategy for insourcing distinctive capabilities).

Non-regulated Activities are expected to contribute a cumulative total of approximately €450 million to the Group's EBITDA over the life of the Plan, in return for limited investment and risk exposure.

		The Group's strategy			The energy environment				The Group's business		Performance		Annexes
--	--	----------------------	--	--	------------------------	--	--	--	----------------------	--	-------------	--	---------

In terms of International Activities, in addition to the projects currently underway in Latin America (Brazil, Peru and Uruguay), the 2021-2025 Industrial Plan envisages that we will take advantage of new opportunities capable of driving further EBITDA growth in return for low levels of risk and modest capital outlays. Terna expects to invest up to €300 million in new projects over the life of the Plan.

To help drive delivery of the Plan and enable Terna to effectively transform our business processes, two strategic enablers have been identified: the development of new technologies and of our people.

In this regard, of the total budget of €8.9 billion for investment in regulated assets, the Group has earmarked approximately €900 million for expenditure on digitalisation and innovation, which will play an increasingly central part in keeping with their crucial role in enabling the ecological transition for the benefit of the entire system.

In addition, in order to optimise the working environment for our people, we have launched a project called NexTerna, with the aim of reengineering our processes through the use of digital technologies and by rethinking physical workplaces.

Finally, maintenance of a strong capital structure through robust cash generation will also help to support an attractive dividend policy.

Outlook

In the final quarter of the year the Group will continue to focus on delivering on our 2021-2025 Industrial Plan, which aims to confirm and strengthen Terna's central role in driving the Italian energy system and enabling the ecological transition. Of the €9.2 billion to be invested under the Industrial Plan, approximately €1.4 billion is to be invested in the current year.

In line with the new 2021 National Transmission Grid Development Plan presented in July, which targets investment of €18.1 billion over the next ten years (up 25% on the previous plan), expenditure on Regulated Activities will be stepped up. Investment will focus on enabling the energy transition and facilitating the development and integration of renewable sources, making a major contribution to achieving the ambitious goals set out in the Green Deal and helping to drive the country's economic recovery.

The principal electricity infrastructure under construction includes the interconnection with France and the planned strengthening of the link between Sardinia, Corsica and the Italian mainland (SA.CO.I.3). As regards the progress of work on the Tyrrhenian Link, the consents process for the East Link section is being finalised in the second half of the year, whilst the public consultation on the West Link section has begun. The process of procuring the cables is also expected to be completed in the last quarter. Work is also progressing on the main projects that will increase exchange capacity between the various areas of the Italian electricity market, including the Bisaccia-Deliceto and Paternò-Pantano-Priolo power lines.

In terms of the Security Plan, the planned installation of synchronous compensators will continue, with the aim of supporting the regulation of short-circuit voltage and power in areas of the country characterised by a high level of production from renewable sources and a significant reduction in traditional production.

Work on the reorganisation of electricity grids in metropolitan areas will also continue in the latter part of 2021, primarily involving the renewal of existing infrastructure with new technologically advanced connections meeting the highest standards in terms of environmental sustainability (e.g., Naples, Rome and Turin).

Finally, the regulator is in the process of establishing the methods and criteria for determining and revising the allowed WACC for the electricity and gas sectors from 2022. As part of this procedure, in July, ARERA published an initial consultation document (no. 308/2021/R/com), setting out its initial methodological approach to revising the way the regulator calculates a number of parameters that make up the formula. ARERA expects to publish a second consultation document in the last quarter and adopt a final determination by the end of the year.

With regard to Non-regulated Activities, Terna will continue to consolidate our role as a provider of both connectivity, pursuing opportunities based on exploiting the Group's own fibre infrastructure, and energy solutions, developing high value-added services for corporate customers and exploiting market opportunities for traditional and renewable customers. This will include openings resulting from the acquisition of the LT group.

In terms of manufacturing, the aim is to build on Tamini's performance, exploiting the strategic opportunities deriving from the acquisition of total control of the group, and complete the integration of Brugg, enabling us to take full advantage of the group's distinctive expertise in terrestrial cables and of synergies with the Terna Group's other businesses. The new corporate structure put in place in the first half of the year is also expected to be beneficial in this regard.

International Activities will continue to focus on managing and maintaining the power lines in service in South America and on continuing work on the construction of the two Linha Verde I and Linha Verde II power lines in Brazil, which we expect to reach major milestones.

The strategic assessment of further opportunities in overseas markets will continue. This may take the form of partnerships and will involve the careful selection of projects with a view to ensuring a low risk profile and avoiding the need to tie up large amounts of capital.

In line with previous months, the Group will continue to step up investment in innovation and digital solutions as part of the transformation that will enable us to manage the growing complexity of the electricity system. Significant attention will also be paid to people development and the insourcing of strategic competencies, to the strengthening of departments, and to optimising the working environment for our people through delivery of the NexTerna project, which has already achieved the first important milestones in the seven areas into which the project is divided.

Management of Terna's business will continue to be based on a sustainable approach and respect for the ESGs, ensuring that we are able to minimise our environmental impact, involve local stakeholders and meet the need for integrity, responsibility and transparency.

The above objectives will be pursued whilst maintaining our commitment to maximising the cash generation necessary ensure a sound, balanced financial structure.

Our people

People are Terna's most important asset, one of the enabling factors in the 2021-2025 Industrial Plan. Each of us brings skills and experience that can help to increase the value of the Company.

			unit
THE WORKFORCE	AT 30 SEPTEMBER 2021	AT 31 DECEMBER 2020	CHANGE
Senior managers	97	80	17
Middle managers	765	672	93
Office staff	2,707	2,587	120
Blue-collar workers	1,427	1,396	31
Total	4,996	4,735	261

The increase of 261 in the workforce at 30 September 2021 compared with 31 December 2020 is primarily linked to the requirements relating to delivery of the challenging investment programme provided for in the 2021-2025 Industrial Plan, and to the need to strengthen the Group's distinctive competencies.

The measures introduced in response to the Covid-19 emergency

In the first nine months of 2021, Terna continued to apply the specific organisational measures designed to reduce the risk of infection from Covid-19 introduced in 2020. As part of the Sicuri Insieme ("Safe Together") campaign, the offer of molecular testing to anyone making a request proceeded during the first nine months of the year. The tests conducted at our Rome offices were conducted under the agreement entered into with Rome's Agostino Gemelli Hospital. A serological testing campaign was also conducted throughout Italy in September, which enabled participating employees to check their IgG antibody levels.

The Group's strategy | The energy environment | The Group's business | Performance | Annexes

Initiatives of the period

Projects underway regarding the "NexTerna" cultural change programme, launched in early 2021, continued in the third quarter of 2021.

In particular, desk sharing mode was extended to include a total of 300 people working in various Company departments, and two remote working hubs were opened in Rome, one in the EUR district and the other in the Termini Station area, providing 78 individual workstations and 4 meeting rooms.

In the third quarter of 2021, Terna pursued various work-life balance initiatives, in response to corporate welfare needs highlighted by staff. In particular, the MiniWatt company crèche opened in September, whilst the new Company Wellness Centre opened its doors in July.

NexTerna (New Ways of Working)

Compensation, welfare and policies

CONSOLIDATED INTERIM FINANCIAL REPORT - 30 SEPTEMBER 2021 | TERNA GROUP 27

Approximately 97,400 hours of training were provided in the first nine months of 2021, covering Corporate, Technical and HSE & Compliance matters.

In the Corporate sphere, the MEET-UP RUO project, aims to prepare the Human Resources and Organisation department to play a central role in helping everyone at Terna adapt to the new ways of working, was launched. In particular, the inspirational "Tips4TheFuture" meetings aimed at the HR community continued; performance and data meetings were held in the third quarter. Meetings will continue until the end of the year.

The Role Model project, which was developed together with the ELIS Consortium and saw five colleagues act as role models in a selection of Italian schools, was completed. The first phase of training on Agile methodologies for project management, dedicated to people involved in the NexTerna programme, which saw the participation of 83 staff, was also completed.

Launched in September, the Innovation Bootcamp is a training programme specifically designed for 40 Team Innovation colleagues aimed at strengthening their skills in specific innovation-related principles and methodologies. The programme, which will alternate between lectures, workshops and testimonials from innovation ecosystem players, is aimed at consolidating knowledge relating to specific themes and trying out new methods and frameworks via field work.

During the third quarter, participation also continued in the training initiatives offered by the "Valore D" association, which, among other things, are aimed at fostering a corporate atmosphere geared towards diversity and inclusion. An additional 5 colleagues were involved.

September also saw the launch of the Project Management Fundamentals training course in collaboration with Luiss Business School, which is dedicated to selected members of staff who coordinate projects relating to specific Company departments. The course is aimed at providing the key methodological and operational tools needed to manage a project.

The new fully digital Language Training campaign continued, using one-to-one and virtual language learning methods.

In the Technical Training area, ongoing initiatives in the third quarter included training activities for new hires aimed at encouraging the development of basic technical knowledge and skills (involving a total of 78 staff), live-line working training and multi-skill training.

The third quarter saw completion of the 3 editions of the "Realization of underground cable systems for construction site supervisors" course, which was led by colleagues from Brugg Cables.

HSE & Compliance training included initiatives in the following areas:

compliance with the requirements imposed by the Consolidated Act 81/08;
training on the Provisions for the prevention of electricity risk (DPRET) (involving 249 personnel);
dedicated training plan on electromagnetic fields for exposed workers (involving 1,538 personnel);
refresher training courses in the use of special machinery, involving a total of 506 personnel;
training in the use of defibrillators, involving 409 personnel;
compliance with the GDPR, with a special focus on Terna's new Privacy Framework (involving 1,103 personnel);
training on the Terna Group's Code of Ethics and the whistleblowing system, including an online course launched in the third quarter, attended by approximately 889 personnel;
"Corporate ethics and compliance with Legislative Decree 231" course: several training activities were carried out during the period, involving a total of 108 personnel.

	The Group's strategy		The energy environment		The Group's business	Performance	Annexes

During the third quarter of 2021, staff recruitment and selection activities focused on acquiring people with Industry 4.0 expertise, in keeping with the new organisational arrangements.

Terna's Talent Attraction strategy pursued the 2021 plan to take part in career day and employer branding events, including participation in a job meeting dedicated to young undergraduates studying STEM subjects. During the third quarter of 2021, we also continued our commitment in partnership with the e-Business School University as part of its pre- and post-graduate training programmes for young people.

Work on the Sicuri inTerna project continued in the first nine months of 2021. This aims to promote a global approach to safety involving all the Company's staff, as well as people working at Terna's sites in various capacities. Through the definition of improvement and prevention plans, the project aims to ensure that safety becomes nothing less than a way of life. Over the years, this approach has resulted in a significant reduction in accident indicators relating to both Terna's own personnel and among workers employed by contractors.

Health, Safety & Environment

Innovation

Innovation and digital transformation are essential in an increasingly complex energy sector. Decisions regarding future development focus on the technology trends most relevant to our business.

Innovation is one of the pillars of Terna's business. Indeed, in the new 2021-2025 Industrial Plan more than €900 million have been earmarked for innovation and digitalisation.

2021-2025 INNOVATION PLAN

Our innovation takes the form of Open Innovation initiatives and Innovation Projects.

Open Innovation initiatives

The academic world

• Agreements with universities

Our partnerships with universities with whom we have entered into innovation agreements are continuing. These include agreements with the Polytechnic University of Turin, the University of Padua and Naples Federico II University.

Work is continuing in relation to the memorandum of understanding between Terna and EnSiEL (an organisation of Italian public universities operating in the energy, electricity system and electricity plant sector), through which 48 R&D contracts involving up to 15 Italian universities have been launched to date.

• Start-up Intelligence programme

The seventh edition of the innovative Start-up Intelligence programme run by the Polytechnic University of Milan, focusing on research, scouting and community activities, ended in September.

Innovators

• International Innovation: Digital Scaleup Summit

In September Terna took part in the Scaleup Summit San Francisco organised by our partner, Mind The Bridge, which focused on the search for mature solutions in the areas of special project development, advanced sensors and the use of advanced collaboration tools.

• Next Energy 5

Calls for proposals for Next Energy 5, in collaboration with the Cariplo Factory, were published in September. Two separate calls were launched: a "Call for Talents" and a "Call for Solutions". These calls are aimed at further boosting the culture of innovation as an enabling factor for change and consolidating the "New normal", by identifying and developing new solutions to capitalise on the acceleration of the digitalisation of work activities and enhancing individuals.

• Maker Faire 2021

In October, Terna participated as a Gold Partner in Maker Faire, Europe's largest innovation event, where we had the opportunity to interact and exchange ideas with Italian and international "makers", and to create a concrete and tangible link between makers, researchers, innovators, professionals and industry. E-Mobility, Iot4theGrid, VR training and 3D printing projects were presented during the event.

• SMAU 2021

In October, Terna took part as a sponsor at SMAU, Italy's main information and communication technology trade fair, which provides an opportunity to interact and discuss with other companies and start-ups and be involved in an innovative format that offers new ways of meeting up, including innovation supply and demand, guided tours and speed pitching. We also received the "Smau Innovation Award" for the Terna Ideas programme.

Terna Community

• Workshop on the Innovation Landscape

Terna is present within Silicon Valley's innovation ecosystem with an Innovation Antenna hosted by our partner, Mind The Bridge, in San Francisco. In September 2021, the macro-trends emerging from Silicon Valley in relation to "Asset Management" were analysed. The results were then used as the basis for a digital workshop with the relevant Company departments.

• Terna Ideas

Terna Ideas is an innovation programme aimed at spreading and boosting entrepreneurial culture within the Company. This idea generation and incubation initiative addresses all the Company's staff, with the aim of creating and developing new projects that have the potential to make a positive impact on Terna's business. Of the 143 ideas received, 14 were selected in September and preliminary incubation phases were launched.

Corporate

• Open Italy

Terna participates in the Open Italy programme, an ELIS Open Innovation initiative set up to encourage dialogue and collaboration between large companies, Italian start-ups/SMEs and innovation facilitators via concrete innovation projects. Terna has identified four priority areas of innovation (Operational Improvements, Privacy & Cybersecurity, Urban intelligence & Connections, Change Management for New Ways of Working and Digital HR). With regard to Digital HR, two projects kicked off in September together with the related start-ups.

Innovation projects

Innovation clusters

We have tracked changes in the technology scenario and identified emerging trends for the future of the Italian energy system. Based on their potential impact on the business, we have identified a number of clusters on which to focus our innovation efforts:

Digital The growing need for digital technologies providing intelligent energy and capacity management solutions;
Energy Tech The future energy market will require more efficient, greener technologies;
Advanced Materials The need to reduce the system's environmental impact requires eco-compatible materials;
Robotics Increased automation will enable us to offer services on a mass scale to a growing number of customers.

Project streams

Taking these clusters as the basis, innovation is centred around a number of project streams, consisting of projects developed by the System Operator and Transmission Operator Innovation Factories.

• System of systems

Innovation on a number of different fronts in the management of grids and markets will be key to ensuring that we have an increasingly efficient single system of integrated systems.

E-mobility lab

We are committed to developing smart charging and vehicle-to-grid applications with the various e-mobility stakeholders in order to enable the supply of grid services for electric vehicles;

Equigy

Together with other European TSOs, we have developed a new platform based on blockchain technology that aims to facilitate the participation of new flexible resources in the system services market.

• Digital sustainable assets

We aim to create sustainable digital assets offering solutions for use in managing the grid as part of efforts to achieve ongoing improvements in the service we provide.

Drones

We use Visual Line Of Sight (VLOS) and trial Beyond Line of Sight (BVLOS) technologies to perform remote monitoring surveys to enhance the efficiency of power line inspections;

Advanced sensors

We are investigating new solutions for grid monitoring, such as the use of satellite technologies;

SF6 free

High-voltage electrical equipment with insulation and circuit-breaking fluids offering an alternative to SF6 is being studied, with a view to reducing SF6 emissions and increasing the environmental sustainability of the grid, in line with EU directives;

Advanced Materials

The feasibility of using coatings to increase the resilience of electricity transmission networks is being studied.

• Enhanced system operation

Ensuring the safe performance of grid operations and improving the operation and interoperability of control centres are essential objectives for Terna. This is why we continually invest in grid management optimisation, using the most advanced energy operations and forecasting techniques.

- OSMOSE

Trials for the provision of the following innovative flexibility services are underway on the section of the grid between Puglia and Basilicata:

Voltage and synthetic inertia regulation provided by wind turbines, with and without batteries;
Congestion resolution and voltage regulation via demand side response provided by large industrial users;
Calculation of line transit limits using new dynamic thermal rating techniques, which are integrated into a new advance dispatching algorithm for resolving congestion with three hours forecast.

- Distributed generation observability

The validation of pilot solutions developed and implemented for real-time estimation of key electricity data relating to load and distributed generation, connected to distributor networks, is underway. The process is expected to be completed by the end of 2021.

• Safety

Reviewing processes and innovative technologies (e.g., for personal protective equipment) allows us to constantly improve safety for people doing their normal jobs.

• New normal

This topic area involves the development of innovation projects and initiatives to advance the Company's New Ways of Working strategy, involving a rethink of how we are going to work after the Covid-19 pandemic has ended.

INTELLECTUAL CAPITAL

We have developed a process for protecting and safeguarding our intellectual property (IP) in its various forms, creating a competitive advantage, as well as new business opportunities. Patent applications, filed both in Italy and overseas, and the granting of patents (including patents and a design model), as well as the assessment of around ten further potential projects qualifying for patent protection, have continued.

ecologicaltransition #electricitysystem #DrivingEnergy

2 The energy environment

Electricity demand

and production in Italy

Demand for electricity in Italy

Demand for electricity in Italy amounted to 238,972 GWh in the first nine months of 2021, an increase of 6.2% compared with the same period of 2020, and substantially in line with 2019 pre-pandemic figures.

ELECTRICITY BALANCE IN ITALY (GWh)*	9M 2021**	9M 2020**	CHANGE	% CHANGE
Net production	206,844	206,350	494	0.2%
From overseas suppliers (imports)	36,482	27,063	9,419	34.8%
Sold to overseas customers (exports)	(2,370)	(6,489)	4,119	(63.5%)
For use in pumping***	(1,984)	(1,832)	(152)	8.3%
Total demand in Italy	238,972	225,092	13,880	6.2%

* Does not include demand for energy for ancillary services related to electricity production.

** Provisional data *** Electricity used for pumping water for subseqeunt use in the production of electricity or as a way of immediately balancing excess production.

Monthly demand for electricity in Italy in the first nine months of 2021 performed differently in the months of January and February with respect to the following months. Despite a slight fall due partly to the calendar effect (fewer working days), monthly demand for electricity in the first two months of the year was comparable to the same period in the previous year. However, from March electricity demand increased considerably, reflecting the downturn in demand in 2020 due to the total lockdown and the shutdown of productive activity in response to the Covid-19 emergency last spring.

MONTHLY DEMAND FOR ELECTRICITY IN ITALY*

Meeting demand and energy production

* Provisional data.

Net wind production

Net photovoltaic production

Net biomass production
Net geothermal production
Net renewable hydro production
Net thermoelectric production
Net non-renewable hydro production

Electricity production in the first nine months of 2021 is broadly in line (up 0.2%) with the same period in 2020, with the increase in demand almost entirely covered by overseas imports.

In the first nine months of 2021, approximately 37% of total energy demand was met from renewable energy sources, a figure broadly in line with the same period of 2020. In terms of individual renewable sources, there were increases in wind production (up 5%) and biomass production (up 2%), slightly offset by a reduction in geothermal production (down 2%). Photovoltaic and hydro production are broadly in line.

With our projects and substantial investment in network infrastructure, we are laying the foundations to promote and support the current ecological transition with a fit-for-purpose electricity system that is safe, efficient and makes increasing use of renewables. Thanks to the unique skills of our people, constant dialogue with local communities and the adoption of innovative solutions, we are contributing to the growth and development of sustainable projects for the benefit of Italy.

sustainability #innovation #DrivingEnergy

3 The Group's business

Regulated Activities

The National Transmission Grid

Transmission and dispatching

The Terna Group owns 99.8% of the NTG, one of the most modern and technologically advanced in Europe. We are the largest independent electricity transmission network operator in Europe and one of the world's leading operators, with around 75 thousand kilometres of high and very high-voltage lines. The Group is responsible for managing the flow of electricity through the grid in every part of Italy, with the aim of ensuring that there is a constant balance between the quantity of energy injected into the grid and demand,and guaranteeing continuity and accessibility of service for the population as a whole. We are also responsible for planning, construction and maintenance of the grid.

The Group's capital expenditure

The Terna Group's total capital expenditure in the first nine months of 2021 amounts to €925.3 million, marking a significant increase compared with the €749.5 million of the same period of the previous year (up 23.5%). This confirms our major commitment to delivering the infrastructure necessary for a sustainable energy transition.

				(€m)
	9M 2021	9M 2020	CHANGE	% CHANGE
Development Plan (1)	326.4	248.2	78.2	31.5%
Security Plan	159.2	119.9	39.3	32.8%
Projects to renew electricity assets (1)	320.3	266.7	53.6	20.1%
Other capital expenditure	76.4	70.1	6.3	9.0%
Total regulated assets	882.3	704.9	177.4	25.2%
Non-regulated assets (2)	35.2	38.4	(3.2)	(8.3%)
Capitalised financial expenses	7.8	6.2	1.6	25.8%
Total capital expenditure	925.3	749.5	175.8	23.5%

(1) The figures for the first nine months of 2020 have been restated following changes to the purposes of investments, without modifying the overall value of investment in regulated assets.

(2) Non-regulated assets primarily regard the private Italy-France and Italy-Austria interconnectors and the rerouting of power lines for third parties.

The following main regulated assets entered service in the first nine months of 2021:

Power lines:

construction of the new 150kV Melilli-Priolo power line (adding 5.9 km);
construction of the new 132kV Modena North-Modena East power line (adding 5 km);
construction of the new 132kV Figline PS Pirelli power line (adding 3.9 km);
construction of the new 132kV Rivoli Paracca power line (adding 4.4 km);
replacement of the 220kV Arenella-Astroni power line new section in XLPE cable (adding 1 km);
replacement of the 132kV Paracca-Collegno power line new fluid-oil cable (adding 2.7 km).

Cables:

purchase of Padriciano Elettra GLT cable (adding 10.3 km);
replacement at the Misterbianco Villabellini PS new section in XLPE cable (adding 3.6 km).

Substations:

enlargement of the Brennero substation (adding 4 bays);
enlargement of the Belcastro substation (adding 8 bays);
enlargement of the Saluzzo North substation Sedamyl Connection (adding 4 bays);
enlargement of the Porto Torres 1 substation (adding 1 bay);
purchase of the 150kV Serra del Vento substation (adding 4 bays);
purchase of the 380kV Arvedi substation (adding 5 bays);
new activation of the Porto Torres 2 substation (adding 5 bays);
installation of electrical ballast at the Grizzana substation (adding 1 bay);
Scafati substation and connections (adding 8 bays).

Investment in non-regulated assets included the entry into service of the power line in Peru (132 km).

MAIN REGULATED WORKS CARRIED OUT DURING THE PERIOD

DEVELOPMENT PLAN – €326.4 million

Paternò-Pantano-Priolo (€22.1 million)	380kV Paternò-Pantano power line: work is continuing on construction of the foundations (39 out of a total of 50) and assembly of the first pylons (32 out of a total of 50). 380kV Paternò-Priolo power line: construction work has begun on the foundations (6 out of a total of 117). 380/220/150kV Pantano substation: work has been suspended pending the receipt of consents for the relocation.
Vizzini substation and connections (€11.7 million)	Vizzini substation: work began at the end of February and preparation of the site is nearing completion; construction of the foundations and the positioning of prefabricated buildings has begun. Vizzini substation connections: the executive design and checks have been completed. Preparations to start construction are underway.
Italy-France interconnector (€11.6 million)	Piossasco converter station: FAT (Factory Acceptance Testing) has been carried out on the key functions of the control system, which is required to complete installation of the command, control, and protection systems. Cable connection: final testing has successfully taken place following the laying of the cable for bi-poles 1 and 2, and the connection has been completed.
Reorganisation in Turin (€9.8 million)	Pianezza connections - phase 2: demolition of the section of the line not in service (2.3 km) has been completed. All the foundations (13 in total) have been completed. Excavation for the 3-km Grugliasco-Pianezza cable has been completed (out of a total of 6.3 km), and approximately 1.5 km of cable has been laid for the first outgoing section for the Pianezza substation. 132kV Rivoli-Paracca and Paracca-Collegno cables: After completion of the Rivoli Paracca (4.4 km) connection in May and the Paracca-Collegno (2.7 km) connection in August, removal of the defunct fluid-oil cables has begun. Pianezza substation - installation of 220kV reactor: the civil works, the foundation of the new reactor and the new oil collection tank are nearing completion.
Reorganisation in the Upper Bellunese area (€9.4 million)	Auronzo substation: the civil works are in progress, with work on the perimeter and retaining walls and on the foundations for the machinery nearing completion. Production of the equipment is in progress. Auronzo substation connections: Construction work has begun.

The Group's strategy			The energy environment			The Group's business		Performance		Annexes

Bisaccia-Deliceto power line: 95% of the foundations (74 out of a total of 77) have been completed, 95% of the pylons (74 out of a total of 77) have been assembled and 60% of the conductors (21 out of a total of 34) have been tested.

Expansion of the Bisaccia electricity substation and the installation of PSTs: following the entry into service of the substation's enlargement (in December 2020), permission is awaited from the relevant authorities for transportation of the PSTs and the transformer to the site.

220kV Castelluccia-Naples Primary Substation cable: the work has been completed, except for the last section currently restricted by the need for a licence for a motorway crossing from the relevant authority.

220kV Astroni-Naples Centre cable: the laying of 9.4 km of cable has been completed, and work on the final coupling is in progress, with testing to be launched in the coming months.

SECURITY PLAN – €159.2 million

Garigliano, Fano, Foggia and Brindisi compensators: the civil works, the foundations for the synchronous compensator, and transportation of the machinery to the site have been completed. Commissioning is in progress. For Brindisi, on the other hand, assembly of the systems is continuing in parallel.

Candia compensator: the civil works are nearing completion; the foundations of the synchronous compensator have been completed, and transportation of machinery to the site has been completed and assembly is underway.

Maida compensator: civil works are in progress to build the foundations; permission has been granted by the relevant authorities for special transportation of machinery to the site, and reinforcement of the buildings has begun.

This project aims to boost the availability of data on the grid in order to make it easier to monitor and manage the security of the electricity system, by increasing and expanding the fibre optic network.

A further 26 electricity substations on the NTG (making a total of 502 substations) have been connected and lit at 30 September 2021.

PROJECTS TO RENEW ELECTRICITY ASSETS – €320.3 million

Delivery of the commitment to carry out works to renew electricity assets in order to improve the reliability and resilience of the NTG has continued.

The renewal of overhead lines and substation equipment continued during the first nine months of 2021: approximately 2,155 km of conductors and 14 items of equipment were replaced, 3 with "green" equipment, insulated using vegetable esters.

Grid upgrades in the Foggia-Benevento area (€8.8 million)

Reorganisation in Naples (€5.4 million)

Synchronous compensators (€70.7 million)

Fiber for the Grid (€17.7 million)

Renewal of electricity assets

Consents processes

The consents processes for the following new projects or interventions have been initiated and concluded in 2021:

in progress:
- the Santa Teresa-Tempio-Buddusò power line, new infrastructure serving northern Sardinia;
- work on the 132kV grid in the Valle Stura in the province of Cuneo;
- reorganisation of power lines in the Cepagatti area in the province of Pescara;
- construction of cable connections for the Naturno electricity substation in the province of Bolzano;
- 132kV Donada-Rosolina-Brondolo underground power line, between the provinces of Venice and Rovigo;
- new 150kV underground cable power line connecting the Ragusa electricity substation with the Ragusa North primary substation.
concluded:
- reorganisation of the electricity grid in Bologna;
- partial undergrounding and subsequent demolition of the Mercallo–Cameri power line;
- a new 132kV power line linking Elba with the mainland;
- a new 132kV underground power line between the Conselice and Voltana primary substations in the province of Ravenna;
- new 150kV power lines in cable linking the Vittoria, Santa Croce Camerina and Santa Croce Camerina - Scicli primary substations in the province of Ragusa;
- reorganisation of the electricity grid between Malcontenta and Fusina in the province of Venice;
- reorganisation of the electricity grid in Rimini and Riccione;
- new 132kV Marostica PS Bassano substation underground power line, in the province of Vicenza;
- new power line of a section of the 220kV Castelluccia San Sebastiano overhead power line;
- modernisation of the existing 380kV Bolano-Paradiso power line in the provinces of Messina and Reggio Calabria, and construction of the new substation in Contrada Annunziata;
- new 150kV underground cable power lines called "Carini2-Carini RT" and "Carini2-Carini", both in the town of Carini, in the province of Palermo.

Projects initiated

A number of projects have been approved and initiated in 2021. These include:

work on modernisation of the 132kV Bulciago Lecco power line;
a pilot project for the 132kV Quarto Isola Ridracoli power line that crosses the Apennines between Tuscany and Emilia;
the new plan for Terna's offices in Tuscany regarding the new site for the Suvereto Infrastructure Unit;
preparatory work for the laying of submarine fibre cable between Italy and Montenegro;
modernisation of the old 132kV San Giuseppe Portoferraio power line on the island of Elba;
demolition of the 132kV Lizzana-Pista overhead power line;
the Adriatic Link, the new submarine power line which, at a cost of €1 billion, will link the Abruzzo and Marche regions, and for which Terna has begun the participatory design process;
work on the demolition of 380kV overhead power lines between Dolo and Camin;
work on the demolition of the 132kV overhead power lines between Figline and Pirelli in the Municipality of Figline and Incisa Valdarno and of the related foundations;
work on undergrounding a section of 132kV power line between P. Malon and Pelos/ Somprade in the Municipality of Auronzo di Cadore;
work on the demolition of a section of the 220kV Castelluccia San Sebastiano overhead power line in the province of Naples;
the final phase of the reorganisation of one of the five power lines involved in the reorganisation project in the municipality of Magenta in the province of Milan has begun;
the last phase of work on modernisation of the 220kV underground power line connecting the centre of Naples with Astoni, involving the replacement of 9.3 km of fluid-oil cable with XLPE cable.

Quality of service

NTG RENS INDICATOR PERFORMANCE1

Each segment of the electricity system - generation, transmission and distribution - plays a role in ensuring the availability of electricity in Italy, guaranteeing adequate quality standards and keeping the number of outages below pre-set thresholds.

Terna monitors service continuity through various indicators defined by ARERA (Resolution 567/19) and in Terna's Grid Code.

These continuity indicators are significant for the system, as they monitor the frequency and impact of events that have occurred on the electricity grid as a result of faults or due to external factors, such as weather events. In all cases, the period of observation is three years, a period in which annual targets have not been exceeded, testifying to the high quality of service achieved.

CONTINUITY INDICATORS

RENS*

What it measures

Energy not supplied following events affecting the relevant grid. **

How it is calculated

The sum of the energy not supplied to users connected to the NTG (following events affecting the relevant grid, as defined in the ARERA regulations governing quality of service).

* Regulated Energy Not Supplied. ** The "relevant grid" refers to all of the high-voltage and very high-voltage network.

ASA***

What it measures Availability of the service provided by the NTG.

How it is calculated

Based on the ratio of the sum of energy not supplied to users connected to the NTG (ENS) and energy fed into the grid.

*** Average Service Availability.

* Provisional data.

The "NTG RENS" indicator for the period from January to September 2021 based on preliminary data, amounts to 278 MWh (compared with an annual target of approximately 820 MWh set by ARERA).

As regards the ASA indicator, availability was 99.99994% in the first nine months of 2021, compared with 99.99908% in 2020. The operating performance shows that ASA has remained stable at a high level over the years (the higher the indicator, the better the performance). This indicator shows that the energy not supplied following a fault on the owned grid represents a minimal part of the total quantity of energy supplied to users of the grid.

Existing regulations (set out in Resolution 567/2019/R/eel) envisage a series of mechanisms designed to regulate and encourage improvements in the quality of service provided by Terna. The overall economic effects of these mechanisms are accounted for at year end (including RENS). With regard to costs, which are determined periodically on the basis of events that have occurred, Terna recognised costs of €4.7 million in the first nine months of 2021, compared with €2.7 million in the same period of 2020.

¹ The targets for 2016-2023 have been set as an average of the 2012-2015 RENS indicator, referred to in ARERA Resolution 567/19/R/eel, with a 3.5% improvement in performance required for each year compared with the previous one. Since 2016, Terna's NTG RENS indicator also takes into account the performance of the grid operated by Terna Rete Italia S.r.l. (merged with Terna S.p.A. on 31 March 2017).

Electricity cost trends

Terna uses the Dispatching Services Market (DSM) to procure dispatching resources to guarantee the security and adequacy of the electricity system.

Dispatching Services Market (DSM)

The net charge for using the DSM was €1,700 million in the first nine months of 2021 (provisional data), in line with the same period of the previous year (€1,681 million).

MONTHLY DSM COSTS (€m)

Monthly DSM charge 2020 Monthly DSM charge 2021

* Provisional data.

Cost of procuring resources on the Dispatching Services Market (uplift)

The total uplift was €1,701 million in the first nine months of 2021 (provisional data), slightly down compared with the same period of the previous year (€1,761 million). This reflects an increase in revenue due to a reduction in the cost of virtual interconnection.

MONTHLY PERFORMANCE OF REVENUE AND UPLIFT COSTS (€m)

* Provisional data.

Non-regulated Activities

Energy market solutions

Using our distinctive competences, we develop value added services as an Energy Solutions Provider for businesses. Our Non-regulated Activities are always designed to support the ecological transition, in keeping with our core business.

The main areas of business in this segment are:

INDUSTRIAL
- Transformers Tamini Group
- Terrestrial cables Brugg Group
CONNECTIVITY
ENERGY SOLUTIONS
PRIVATE INTERCONNECTORS PURSUANT TO LAW 99/2009

Tamini received orders for transformers worth approximately €145.4 million in the first nine months of 2021, sharply up on the figure for the same period of 2020 (an increase of 69%).

Orders in the Power sector amounted to approximately €114 million, an increase of 93% compared with the first nine months of 2020. This performance is primarily linked to the award of major contracts in Italy and northern Europe. In addition, Tamini has also been awarded two important framework contracts to produce large transformers in the period 2021-2023, worth approximately €60 million.

Orders in the Industrial sector amount to approximately €31 million, up on the figure for the same period of 2020 (an increase of 16%).

Orders for Services amount to approximately €10.8 million, up 39% on the first nine months of 2020.

The value of factory backlogs is significantly up compared with the end of 2020 at approximately €144 million.

Revenue rose strongly in the first nine months of 2021, increasing 23% compared with the same period of 2020. The average volume and size of the new transformers being produced and tested have also increased significantly. The production and testing of ten step-up transformers of between 125 MVA and 290 MVA for compensators, two 400 MVA Power transformers and a phase-shifting transformer for utilities in northern Europe was completed, as was production and testing of a 250 MVA ATR for a major electricity substation in Switzerland and of two 250 MVA ATRs for an Italian utility.

Tamini continues to be committed to the production of vegetable oil transformers for the Power sector. A 250 MVA vegetable oil autotransformer and a 63 MVA transformer were produced and tested during the first nine months of 2021 and a number of 250 MVA vegetable oil autotransformers are being built at the Legnano plant.

TERRESTRIAL CABLES – BRUGG GROUP

The Brugg Group operates in the terrestrial cable sector, producing low through to very high voltage products and specialising in the design, development, construction, installation and maintenance of electrical cables of all voltages and accessories for high and very high-voltage cables.

In line with the Terna Group's strategic objectives, in order to improve the Brugg Group's ability to respond to market needs, limit operational complexity and streamline operations, on 22 January 2021, the board of directors of Brugg Kabel AG launched a new operational structure. Brugg Kabel Services AG now acts as the Swiss holding company, controlling two subsidiaries, Brugg Kabel Manufacturing AG (100%-owned) and Brugg Kabel AG (90%-owned). Agostino Scornajenchi has been confirmed as the Group's Executive Chairman.

Orders acquired in the first nine months of 2021 amount to approximately CHF120 million. The High Voltage System segment made a major contribution (CHF72 million). The Low Medium Voltage segment also made a significant contribution (CHF34 million), as did the High Voltage Accessories segment (CHF14 million).

Compared with the same period of 2020, production of high voltage cables is up 57%, whilst the volume of low and medium voltage cables produced is up 9%. 53 Type Tests were successfully conducted and the new asset management service was launched.

Order book

Results

Vegetable oil transformers

CONNECTIVITY FIBRE

Open Fiber project Under the framework agreement regarding the provision of fibre infrastructure forming a national and regional backbone, 687 km of fibre was delivered on schedule in the first nine months of 2021. Further activation letters were signed in the third quarter. Sections of fibre extending for approximately 1,604 km are due to be delivered by the end of 2021.

Eolo An IRU agreement, including the provision of ancillary services was entered into in the first nine months of 2021. 105 km of fibre was delivered on schedule, out of the 1,000 km due to be delivered between 2021 and 2022.

ENERGY SOLUTIONS SMART GRIDS

EF Solare Under the contracts for the revamping/repowering of photovoltaic plants entered into with the customer, EF Solare, plans for the construction of the Caputo and Martimucci plants (Lot 2) were drawn up in the third quarter of 2021 and work began on preparing the site for the Aurelia plant. Work on the site of the Latina 2 plant is in progress.

Tratos HV Work on fulfilling the turnkey construction contract for a heat recovery cogeneration system,

Sacro Convento di San Francesco

Energia Emissioni Zero 4 S.r.l. (EDPR Group)

Eni New Energy A contract to provide engineering services and build an electrochemical storage unit at Assemini was entered into with this customer in May 2021.

entered into with the customer, Tratos HV, has begun in the second half of the year. The

system is expected to be commissioned and enter service by the end of 2021.

Work on the memorandum of understanding regarding cooperation with the General Custody of the Sacred Convent of Saint Francis of the Friars Minor Conventual, with the aim of implementing sustainability initiatives meeting shared needs, was completed in September.

HIGH VOLTAGE

Acciaierie Venete The executive design, necessary before work can start on manufacturing the special equipment needed (energy compensation systems), was confirmed in the third quarter of 2021. Factory testing is due to take place by the end of 2021, following which installation will begin. The related EPC contract, signed in February 2021, regards the supply of three reactive energy compensation systems (using STATCOM technology).

Under the contract regarding the supply of the energy service system for the Monte Mattina HV/ MV user to connect the Aquilonia wind farm to the NTG (25.2 MW), the first milestone, involving the positioning of the transformer, was successfully completed in the third quarter of 2021. Civil engineering works are proceeding without any particular issues arising.

Marcegaglia Ravenna S.p.A. Consultation on a study regarding "Power Quality", aimed at assessing the customer's needs in terms of systems and/or technicalities (e.g. Statcom), has been completed.

Vetrerie Riunite A contract was entered into with Vetrerie Riunite in the third quarter of 2021 regarding the revamp of connection infrastructure for the customer's factory. The project will involve the replacement of a HV/MV transformer, in addition to the full upgrade of civil and electromechanical equipment, and the installation of a new MV cable duct. Procurement is underway prior to beginning design work and a preliminary survey of the site.

PRIVATE INTERCONNECTORS PURSUANT TO LAW 99/2009

Terna is responsible for managing routine and special maintenance activities and operating the interconnector in return for an annual fee. The infrastructure was completed on 28 December 2019 and is owned by Monita Interconnector S.r.l., which was sold to the private backers on 17 December 2019.

Out of a total of approximately 95 km of cable for the Italian end of the interconnection, at 31 March 2021, the laying of cable for the entire section running along the A32 motorway, through the Frejus motorway tunnel and along other roads outside the A32 motorway have been completed. In addition, at 30 June 2021, the laying of fibre has been completed.

The civil works for the Piossasco converter station were completed by September 2021, as was assembly of all the electromechanical equipment and installation of the monitoring systems.

Testing of the protection system and checks of the functioning of the converter are, on the other hand, currently in progress.

Given the delays to work on both the Italian and French sides in 2020, as a result of the Covid-19 emergency, the interconnector's entry into service is currently expected to take place in the fourth quarter of 2021.

The Italy-Austria interconnector (the Reschenpass project) involves construction of a new 220kV AC interconnection between the Glorenza (Italy) and Nauders (Austria) substations. This will consist of 28 km of underground cable, including 26 km on the Italian side, and the necessary upgrade of the domestic grid. The project will increase cross-border interconnection capacity between Italy and Austria by around 300 MW, practically doubling the currently available capacity. The cost of the project is expected to be approximately €85 million.

The sale of Terna S.p.A.'s 100% stake in Resia to Interconnector Energy Italia S.C.p.A. ("IEI"), Consorzio Toscana Energia S.p.A. and VDP Fonderia S.p.A. was completed on 15 September 2021, together with the signature of agency agreements for the construction, operation and maintenance of the Italia-Austria Interconnector in accordance with Law 99/2009.

On 6 May 2021, the European Commission gave the go-ahead for exemption to be granted and, on 17 June 2021, Resia received confirmation of the exemption from the Ministry for Economic Development (for capacity of 150 MW for a period of 10 years), following the receipt of clearance from ARERA and the European Commission.

It should be noted that, on 16 March 2020, the exemption process formally began with the special purpose vehicle, Resia, submitting an exemption application to the Ministry for Economic Development. The Ministry then submitted the exemption application to ARERA to enable the regulator to issue its opinion. On 17 November 2020, ARERA granted its approval for the issue of the exemption decree to Resia.

The interconnector is due to enter service in 2023.

The project involves the development of new transmission lines between Italy and Switzerland, with the aim of increasing interconnection capacity between the two countries.

The creation of a direct current line is planned, partly in undersea cable, between the substations of Salgareda (IT) and Divaça/Beričevo (SL), together with work on upgrading the domestic grids in Italy and in Slovenia. The project is currently awaiting the necessary consents on the Italian side. The expected increase in cross-border capacity of approximately 1 GW will raise the interconnection capacity to more than double the current level.

Italy-Montenegro interconnector project

Italy-France interconnector project

Italy-Austria interconnector project

Italy-Switzerland interconnector project

Italy-Slovenia interconnector project

International Activities

Overseas initiatives of interest to the Terna Group focus on the development and operation of the concessions obtained.

This model envisages the acquisition and operation of transmission systems abroad by taking part in international concession and/or secondary market awards; in this area, Terna has acquired specific expertise in managing consents processes, project management and management of the power lines built. Further areas of interest regard energy solutions, technical assistance and project management services.

Latin America continued to witness a worsening of the situation brought about by Covid-19 in the third quarter of 2021. At 30 September 2021, a number of countries are still in the throes of a full-blown health emergency. Progress on projects in Brazil and Peru has been affected by the emergency.

Construction work is proceeding in Brazil thanks to the implementation of specific health protocols. Operation and maintenance activities are taking place under measures introduced in line with Terna's standards and local requirements.

Initiatives in progress in South America

Operation and maintenance of the Santa Maria Transmissora de Energia (SMTE) power line in the State of Rio Grande do Sul and the Santa Lucia Transmissora de Energia (SLTE) power line in the State of Mato Grosso continued in the third quarter of 2021.

Onsite activity and engineering work and the acquisition of rights and easements for the SPE Transmissora de energia Linha Verde II S.A. project continued. This is the first of the two concessions covered by the preliminary agreement with Construtora Quebec, regarding the construction of a 160 km 500kV power line in the State of Minas Gerais.

Engineering work and the acquisition of rights and easements for the second concession covered by the above agreement, SPE Transmissora de Energia Linha Verde I S.A., also continued. This project involves construction of a 150 km long 500kV power line dubbed the "Governador Valadares-Mutum" in the State of Minas Gerais.

PERU

URUGUAY

The 132 km 138kV power line between Aguaytìa and Pucallpa entered commercial service on 16 May 2021.

Operation and maintenance work continued in the third quarter of 2021, following the line's entry into service on 16 May 2021.

Other international initiatives

Via ELMED Etudes SARL2, work continued on development of the electricity interconnector project between Italy and Tunisia.

The third quarter of the year, work on the development of the electricity interconnector project between Italy and Tunisia led to the signature of another two contracts regarding:

an environmental and social impact assessment with the related Resettlement Plan, awarded to the consortium consisting of HPC Italia S.r.l., IDEA Consult (Tunisia), Proger (Italy), Earth Link and Advanced Resources Development (Lebanon) and Plexus Energy (UK);
a feasibility study for the overland section, awarded to the consortium consisting of PT Kwarsa Hexagon Indonesia and Colenco Consulting Ltd Nigeria. The public consultation process at the Italian end was also completed in July.

The promotors, Terna and STEG, have applied to the EU for inclusion of the Tunisia - Italy electricity interconnector in the fifth list of Projects of Common Interest, to be published in November.

² This is the 50/50 Tunisian joint venture between Terna S.p.A. and STEG (Tunisia's vertically integrated, state-owned electrical utility) established in 2009 with the role of conducting studies and providing technical assistance for the Tunisia-Italy electricity interconnector.

As a major transmission and dispatching operator, we invest in skills, technology and innovation to ensure that we are well equipped to plan, develop and maintain the grid (Transmission Operator), and guarantee an electricity service that is balanced, secure and high quality (System Operator).

Italy and Terna are at the centre of a system that includes 26 interconnections with neighbouring countries: this gives us a leading role to play in energy integration in Europe and the Mediterranean area. This know-how is also applied in our Non-regulated and International activities.

electricitysystem #ecologicaltransition #DrivingEnergy

Financial review for the first nine months of 2021

In order to report on the Terna Group's operating performance and analyse its financial position, this section includes management accounts prepared in line with industry best practice. These reclassified statements contain alternative performance measures (APMs, as defined in the guidance provided by ESMA/2015/1415), which management considers to be useful in assessing the performance of the Group and representative of the business's operating results and financial position.

The criteria used in constructing these indicators are the same as those used in the Annual Report. Details are provided in the Annex, "Alternative performance measures (APMs)".

Basis of presentation

The measurement and recognition criteria applied in this Consolidated Interim Financial Report are consistent with those adopted in the consolidated financial statements for the year ended 31 December 2020.

Comparative amounts for the first nine months of 2020 are the same as those published in the Consolidated Interim Financial Report for 2020, without taking into account the impact of completion of the process of accounting for the business combination involving the Brugg Group at the end of 2020. The effects are shown below in the reconciliation between the "published" and "restated" amounts for the first nine months of 2020.

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The Group's strategy | The energy environment | The Group's business | Performance | Annexes

The Group's reclassified income statement

The Terna Group's operating results for the first nine months of 2021, compared with those for the same period of the previous year, and for the third quarter of 2021 and 2020, are summarised in the following reclassified income statement.

		Q3						(€m)
2021		2020 CHANGE	% CHANGE		9M 2021	9M 2020	CHANGE	% CHANGE
642.9	597.5	45.4		7.6% TOTAL REVENUE	1,901.6	1,780.6	121.0	6.8%
550.1	519.8	30.3	5.8%	- Regulated revenue	1,643.5	1,545.0	98.5	6.4%
11.9	5.5	6.4	116.4%	of which Revenue from construction services performed under concession	27.1	13.8	13.3	96.4%
83.5	72.1	11.4	15.8%	- Non-Regulated revenue	246.1	217.7	28.4	13.0%
9.3	5.6	3.7	66.1%	- International revenue	12.0	17.9	(5.9)	(33.0%)
179.5	150.2	29.3		19.5% TOTAL OPERATING COSTS	527.7	457.3	70.4	15.4%
70.8	63.3	7.5	11.8%	- Personnel expenses	215.9	206.7	9.2	4.5%
41.3	38.6	2.7	7.0%	- Cost of services. leases and rentals	126.5	114.7	11.8	10.3%
49.0	35.2	13.8	39.2%	- Materials	135.1	100.5	34.6	34.4%
5.1	4.4	0.7	15.9%	- Other costs	18.4	18.9	(0.5)	(2.6%)
1.4	3.2	(1.8)	(56.3%)	- Quality of service	4.7	2.7	2.0	74.1%
11.9	5.5	6.4	116.4%	- Cost of construction services performed under concession	27.1	13.8	13.3	96.4%
463.4	447.3	16.1		3.6% GROSS OPERATING PROFIT (EBITDA)	1,373.9	1,323.3	50.6	3.8%
165.7	155.9	9.8	6.3%	- Amortisation, depreciation and impairment losses	491.4	458.2	33.2	7.2%
297.7	291.4	6.3		2.2% OPERATING PROFIT (EBIT)	882.5	865.1	17.4	2.0%
(27.3)	(31.3)	4.0	(12.8%)	- Net financial income/(expenses)	(68.4)	(70.4)	2.0	(2.8%)
270.4	260.1	10.3		4.0% PROFIT/(LOSS) BEFORE TAX	814.1	794.7	19.4	2.4%
74.1	67.9	6.2	9.1%	- Income tax expense for the period	231.8	222.9	8.9	4.0%
196.3	192.2	4.1		2.1% PROFIT FOR THE PERIOD	582.3	571.8	10.5	1.8%
0.5	0.6	(0.1)	(16.7%)	- Profit/(Loss) attributable to non-controlling interests	1.9	2.7	(0.8)	(29.6%)
195.8	191.6	4.2		2.2% PROFIT FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT	580.4	569.1	11.3	2.0%

			(€m)
EBITDA BY OPERATING SEGMENT	9M 2021	9M 2020	CHANGE
Regulated Activities	1,327.4	1,260.7	66.7
Non-regulated Activities	42.6	52.0	(9.4)
International Activities	3.9	10.6	(6.7)
EBITDA	1,373.9	1,323.3	50.6

Gross operating profit (EBITDA) for the first nine months of 2021 amounts to €1,373.9 million, up €50.6 million on the €1,323.3 million of the first nine months of 2020. This reflects an improvement in EBITDA from Regulated Activities.

Revenue

			(€m)
REGULATED ACTIVITIES	9M 2021	9M 2020	CHANGE
Tariff revenue	1,584.5	1,498.5	86.0
- Transmission revenue	1,499.4	1,416.5	82.9
- Dispatching, metering and other revenue	85.1	82.0	3.1
Other regulated revenue	31.9	32.7	(0.8)
Revenue from construction services performed under concession	27.1	13.8	13.3
TOTAL	1,643.5	1,545.0	98.5

Revenue from Regulated Activities, after excluding revenue from construction services performed under concession (up €13.3 million), are up €85.2 million, primarily reflecting the impact on transmission revenue of the increase in the RAB (up €82.9 million) and the return on digital substation systems (up €19.3 million in accordance with ARERA Resolution 565/2020), the impact of regulatory incentives (up €7.9 million, in accordance with ARERA resolutions 579/17, 884/17, 319/21 and 391/21) and the positive impact of the volume effect (up €11.6 million). Revenue was also increased by the outcome of the claim for a refund of stamp duty paid on the acquisition of Rete S.r.l. (up €13.4 million). This was more than offset by the impact of the consolidation of Brugg Cables in the first nine months of 2020 (down €7 million, as "published") and recognition, in the first nine months of 2020, of accrued revenue in the form of the bonus receivable under the RENS (Regulated Energy Not Supplied) incentive mechanism for the 2016-2019 sub-period (€15.2 million), compared with the amount recognised in the first nine months of 2021 as a result of the RENS performance in the 2020-2023 sub-period (€4.3 million).

			(€m)
NON-REGULATED ACTIVITIES	9M 2021	9M 2020	CHANGE
Industrial	177.2	157.9	19.3
- Brugg Group	90.5	87.3	3.2
- Tamini Group	86.7	70.6	16.1
Services for third parties (Connectivity, Energy Solutions, other)	60.5	48.7	11.8
Private interconnectors	8.4	11.1	(2.7)
TOTAL	246.1	217.7	28.4

Revenue from Non-regulated Activities is up €28.4 million, primarily reflecting increased contributions from the Tamini Group and the Brugg Group (up €16.1 million and €3.2 million, respectively). The performance reflects the fact that the figure for the first nine months of 2020 reflected one-off revenue recognised as a result of the higher value of the net assets acquired following the acquisition of Brugg Cables compared with the consideration paid (the gain resulting from a bargain purchase, totalling €14.4 million, as "published") and an increase in revenue from the provision of services (up €11.8 million, primarily in the form of Connectivity and Energy Solutions).

Revenue from International Activities is down €5.9 million, essentially attributable to activities carried out under concession in Brazil, due primarily to additional costs incurred in developing the various projects and the slowdown in activity caused partly by the impact of the Covid-19 pandemic. The reduction was partially offset by increased revenue due to a review of tariffs for concessions for infrastructure that has entered service.

Revenue for the third quarter of 2021 is up €45.4 million compared with the same period of the previous year, primarily due to the above factors.

Costs

Operating costs, excluding the cost of construction services performed under concession (up €13.3 million), are up €57.1 million compared with the first nine months of the previous year. This broadly reflects the costs resulting from the operations of the Tamini Group and the Brugg Group (up €21.2 million and €14.6 million, respectively), an increase in personnel expenses, mainly due to the larger workforce, and an increase in operation and maintenance (O&M) costs, essentially due the greater volume of assets under management.

Costs rose €29.3 million in the third quarter of 2021 compared with the same period of the previous year, broadly due to the above factors.

Amortisation, depreciation and impairment losses for the period amount to €491.4 million, an increase of €33.2 million compared with the first nine months of 2020, primarily due to the entry into service of new infrastructure.

Operating profit (EBIT), after amortisation, depreciation and impairment losses, amounts to €882.5 million, compared with the €865.1 million of the first nine months of 2020 (an increase of 2.0%).

Net financial expenses for the period total €68.4 million and primarily regard the Parent Company (€57.6 million). The figure is down €2.0 million on the €70.4 million of the first nine months of 2020, due primarily to an increase in capitalised financial expenses, in line with the performance of capital expenditure during the period.

After net financial expenses, profit before tax amounts to €814.1 million, an increase of €19.4 million compared with the same period of 2020 (up 2.4%).

Income tax expense for the period totals €231.8 million, an increase of €8.9 million (4.0%) compared with the first nine months of 2020. This essentially reflects the increase in pre-tax profit and a reduction in tax-exempt income recognised during the period. The tax rate of 28.5% compares with a rate of 28% for the first nine months of 2020.

Profit for the period amounts to €582.3 million, up €10.5 million (1.8%) compared with the €571.8 million of the first nine months of 2020.

Profit for the period attributable to owners of the Parent (after excluding the share attributable to non-controlling interests) amounts to €580.4 million, up €11.3 million (2.0%) compared with the €569.1 million of the first nine months of 2020.

Reconciliation of the "published" and "restated" amounts for the first nine months of 2020

			(€m)
	9M 2020 (PUBLISHED)	RESTATEMENT	9M 2020 (RESTATED)
TOTAL REVENUE	1,780.6	47.5	1,828.1
TOTAL OPERATING COSTS	457.3	0.4	457.7
GROSS OPERATING PROFIT (EBITDA)	1,323.3	47.1	1,370.4
- Amortisation, depreciation and impairment losses	458.2	2.9	461.1
- Net financial income/(expenses)	(70.4)	-	(70.4)
- Income tax expense for the period	222.9	4.9	227.8
PROFIT FOR THE PERIOD	571.8	39.3	611.1
PROFIT FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT	569.1	34.7	603.8

Compared with the "published" amounts, "restated" gross operating profit (EBITDA) and profit attributable to owners of the Parent for the first nine months of 2020 are €47.1 million and €34.7 million higher. This primarily reflects the impact of the restated amount of the gain resulting from a bargain purchase recognised following the business combination involving the Brugg Group.

Cash flow

Operating cash flow for the first nine months of 2021 was used entirely to finance investing activities. The improvement in working capital during the period, linked to the settlement of trade receivables from 2020, and payment of the final dividend to shareholders have resulted in an increase in net debt.

		(€m)
	CASH FLOW 9M 2021	CASH FLOW 9M 2020
- Profit for the period	582.3	571.8
- Amortisation, depreciation and impairment losses	491.4	458.2
- Net change in provisions	(43.1)	(69.6)
- Net losses/(gains) on sale of assets	(10.5)	(3.7)
Operating cash flow	1,020.1	956.7
- Change in net working capital	(175.2)	(374.4)
- Other changes in property, plant and equipment and intangible assets	45.5	7.2
- Change in investments	2.1	2.1
- Change in financial assets	(33.8)	18.5
Cash flow from operating activities	858.7	610.1
- Total capital expenditure	(925.3)	(749.5)
Free cash flow	(66.6)	(139.4)
- Dividends paid to the Parent Company's shareholders	(359.0)	(332.3)
- Cash flow hedge reserve after taxation and other movements in equity attributable to owners of the Parent	48.2	(93.6)
- Other movements in equity attributable to non-controlling interests	(23.2)	(0.7)
Change in net debt	(400.6)	(566.0)

CHANGE IN NET DEBT (€m)

The Group's reclassified statement of financial position

The Terna Group's financial position at 30 September 2021 and 31 December 2020 is summarised below in the reclassified statement of financial position.

			(€m)
	AT 30 SEPTEMBER 2021	AT 31 DECEMBER 2020	CHANGE
Total net non-current assets	16,075.5	15,645.9	429.6
- Intangible assets and goodwill	600.0	577.9	22.1
- Property, plant and equipment	14,935.5	14,559.7	375.8
- Financial assets	540.0	508.3	31.7
Total net working capital	(1,760.0)	(1,936.2)	176.2
- Net energy-related pass-through payables	(543.0)	(385.0)	(158.0)
- Net receivables resulting from Regulated Activities	450.2	230.9	219.3
- Net trade payables	(467.6)	(818.0)	350.4
- Net tax liabilities	(166.6)	40.5	(207.1)
- Other net liabilities	(1,033.0)	(1,004.6)	(28.4)
Gross invested capital	14,315.5	13,709.7	605.8
Sundry provisions	(78.2)	(121.3)	43.1
NET INVESTED CAPITAL	14,237.3	13,588.4	648.9
Equity attributable to owners of the Parent	4,639.4	4,369.8	269.6
Equity attributable to non-controlling interests	24.7	46.0	(21.3)
Net debt	9,573.2	9,172.6	400.6
TOTAL	14,237.3	13,588.4	648.9

The €429.6 million increase in net non-current assets compared with 31 December 2020 primarily reflects a combination of the following:

total capital expenditure of €925.3 million, as described in the section on "Regulated Activities";
an increase of €31.7 million in financial assets, broadly due to the fees due on infrastructure operated under concession in Brazil (up €18.5 million, reflecting amounts collected and the overall impact of the improvement in the exchange rate between the Brazilian real and euro) and an increase in the Interconnector Guarantee Fund, set up to fund investment in interconnections by art. 32 of Law 99/09 (up €13.9 million);
amortisation and depreciation for the period, totalling €492.2 million;
other movements during the period, amounting to a decrease of €29.6 million, including grants related to assets (primarily for projects financed by the Ministry for Economic Development and the EU and the re-routing of power lines at the request of third parties) and disposals and impairment losses resulting in a reduction of €5.6 million.

The Terna Group's total capital expenditure during the first nine months of 2021, amounting to €925.3 million, is up 23.5% compared with the €749.5 million of the same period of 2020.

* Amounts include financial expenses.

Net working capital (net current liabilities) of €1,760.0 million resulted in a cash outflow of €176.2 million compared with 31 December 2020. This reflects the combined effect of:

Cash outflows

a reduction of €350.4 million in net trade payables, largely reflecting the payment of amounts due as a result of the greater volume of capital expenditure carried out towards the end of the previous year;
an increase in net receivables resulting from Regulated Activities of €219.3 million, broadly due to amounts receivable for transmission services (up €214.4 million), reflecting the following:
- revised tariffs and recognition of the accrued amount due as a return on digital substation systems in accordance with ARERA Resolution 565/20 (totalling €34.1 million);
- factoring transactions completed at the end of 2020 (€149.6 million);
- discontinued application of the Split Payment regime when invoicing transmission services to certain counterparties following their participation in Group VAT arrangements (€30.7 million).

Cash inflows

an increase of €207.1 million in net tax liabilities, broadly due to the increase of €83.3 million in net VAT payable in line with the reduction in trade payables, and an increase in the amount of income tax payable for the period, after payments on account in June and the settlement of tax due for the previous year (up €125.4 million);
an increase of €158.0 million in net energy-related pass-through payables compared with the end of 2020, primarily reflecting the combined effect of:
- an increase in net payables relating to essential plants for the security of the electricity system - UESS (€320.8 million), reflecting items collected during the first nine months of 2021 after taking into account payments made3 ;

³ ARERA ordered payments to the owners of essential plants via Resolutions 9-20-30-42-52-67-94-95-118- 203/2021.

partially offset by

an increase in the amount receivable for the Uplift component (€174.9 million), reflecting:
increased costs incurred during the period (€96.2 million);
factoring transactions completed at the end of 2020 (€78.7 million).
an increase in other net liabilities of €28.4 million, primarily due to the recognition of prepayments received from the backers of the private Italy-Austria Interconnector (up €29.5 million) and an increase in the Interconnector Guarantee Fund set up by Terna S.p.A. following the issue of the 2016 Stability Law (up €15.0 million), after the reduction in the amount payable as stamp duty refunded by the tax authority in 2019 (down €13.4 million) and linked to the acquisition of Rete S.r.l. (December 2015).

Gross invested capital thus amounts to €14,315.5 million, an increase of €605.8 million compared with 31 December 2020.

Sundry provisions are down €43.1 million, primarily due to net uses of provisions for staff incentives plans (down €10.6 million), for early retirement incentives (down €7.2 million), to fund urban and environmental redevelopment schemes (down €6.8 million) and relating to quality of service (down €5.6 million). The performance also reflects net provisions for net deferred tax assets, totalling €7.5 million, primarily due to the effect on taxation of movements in provisions for risks and charge, in the Group's derivative financial instruments and amortisation and depreciation.

Net invested capital of €14,237.3 million is up €648.9 million compared with 31 December 2020 and is financed by equity attributable to owners of the Parent, totalling €4,639.4 million (compared with €4,369.8 million at 31 December 2020), equity attributable to non-controlling interests of €24.7 million (€46.0 million at 31 December 2020) and net debt of €9,573.2 million (up €400.6 million compared with the €9,172.6 million of 31 December 2020).

Debt

The Terna Group's financial management is based on an approach that aims to maximise efficiency and achieve and maintain a solid financial structure, whilst adopting a highly prudent stance towards mitigation of the potential financial risks. The key aspects of the Group's financial policy are diversification of the sources of funding, a balance between short- and medium/long-term forms of debt and the proactive management of debt.

Gross debt at 30 September 2021 amounts to approximately €12 billion, consisting of approximately €8 billion in the form of bond issues and approximately €4 billion in bank borrowings. The average term to maturity of debt, which is almost all fixed rate, is approximately 5 years.

Bond issues (€8.0bn)

Bank borrowings (€4.0bn)

Hedging derivatives and other liabilities (€0.2bn)

Sustainable finance Fully in line with Terna's strategy, which aims to combine investment and sustainability to drive growth and value creation, it is Terna's ambition to play a leading role in the sustainable finance market. This strategy has continued to be adhered to in 2021. From January 2021, Terna in fact became the first Italian electric utility to join the Nasdaq Sustainable Bond Network, the sustainable finance platform operated by Nasdaq that brings together investors, issuers, investment banks and specialist organisations. Terna's leadership in sustainable finance is widely acknowledged by the market which, since 2018, has given a warm welcome to the green bonds issued by Italy's national grid operator.

In this regard, on 16 June 2021, Terna launched a green bond issue for institutional investors, with a nominal value of €600 million. The issue was very popular with investors, with demand topping €2.2 billion and making the bonds around four times overscribed. The green bond has a term of eight years, will mature on 23 June 2029 and pays coupon interest of 0.375%. Terna has now issued green bonds worth €2.6 billion. From 13 July 2021, the green bond was also included in Borsa Italiana's ExtraMOT PRO segment.

The ESG-linked share buyback programme to service the Performance Share Plan 2021-2025 was completed on 23 June 2021. Under the programme, Terna has purchased 1,569,292 own shares (equal to 0.078% of its share capital) at a total cost of approximately €10 million. In keeping with Terna's commitment to sustainability and social and environmental responsibility, the programme includes a mechanism based on bonuses and penalties linked to the Company's achievement of specific environmental, social and governance objectives.

On 16 July 2021, Terna launched a three-year Euro Commercial Paper (ECP) programme worth €1 billion. The commercial papers can be designated "ESG Notes" provided that Terna achieves and maintains a ranking equal to or above Bronze Class in the S&P Sustainability Yearbook for the Electric Utilities sector.

In addition, since February 2020, Terna's CFO has participated in the CFO Taskforce for the SDGs, an initiative launched by the UN Global Compact to develop sustainable finance. Through the implementation of standards and guidelines, the Taskforce aims to align corporate finance and investment with the sustainable development goals promoted by the United Nations.

Further confirmation of our commitment to playing an active role in developing sustainable finance, Terna is taking part in the Corporate Forum for Sustainable Finance, a network of major European businesses committed to the development of sustainable finance as a means to promote a more sustainable and responsible society.

Finally, Terna, both individually and as a member of the above Corporate Forum on Sustainable Finance, will continuously monitor developments in European legislation, with particular regard to the impact of the EU's sustainable finance taxonomy.

Key events relating to finance during the first nine months of 2021 are described below:

on 8 June 2021, Terna renewed its Euro Medium Term Note (EMTN) Programme. As part of the renewal, the maximum value of the programme was increased to €9,000,000,000;
on 13 July 2021, Terna obtained a new loan of €300 million from the European Investment Bank. The loan has a term of approximately 22 years and will be used to fund the 2021- 2025 "Driving Energy" Industrial Plan. The loan, which was obtained on more competitive terms and has a longer duration than those available in the market, forms part of Terna's strategy designed to optimise its financial structure.

	The Group's strategy					The energy environment				The Group's business		Performance		Annexes
--	----------------------	--	--	--	--	------------------------	--	--	--	----------------------	--	-------------	--	---------

The Group's net debt at 30 September 2021 amounts to €9,573.2 million, an increase of €400.6 million compared with 31 December 2020.

			(€m)
NET DEBT (BY TERM TO MATURITY)	30 SEPTEMBER 2021	31 DECEMBER 2020	CHANGE
Total medium/long-term debt	9,408.5	10,019.8	(611.3)
- Bond issues	6,992.8	7,485.7	(492.9)
- Borrowings	2,305.3	2,374.5	(69.2)
- Derivative financial instruments	110.4	159.6	(49.2)
Total short-term debt/ (funds)	164.7	(847.2)	1,011.9
- Bond issues (current portions)	1,001.0	1,258.8	(257.8)
- Short-term borrowings	1,264.8	1,002.2	262.6
- Borrowings (current portions)	439.9	129.2	310.7
- Other current financial liabilities net	51.8	80.4	(28.6)
- Financial assets	(984.4)	(628.8)	(355.6)
- Cash and cash equivalents	(1,608.4)	(2,689.0)	1,080.6
Total net debt	9,573.2	9,172.6	400.6
NET DEBT (BY TYPE OF INSTRUMENT)
- Bond issues	7,993.8	8,744.5	(750.7)
- Borrowings	2,745.2	2,503.7	241.5
- Short-term borrowings	1,264.8	1,002.2	262.6
- Derivative financial instruments	110.4	159.6	(49.2)
- Other financial liabilities net	51.8	80.4	(28.6)
Gross debt	12,166.0	12,490.4	(324.4)
- Financial assets	(984.4)	(628.8)	(355.6)
- Cash and cash equivalents	(1,608.4)	(2,689.0)	1,080.6
Total net debt	9,573.2	9,172.6	400.6

Changes in the Group's net debt are as follows:

a reduction in bond issues (down €750.7 million), primarily following repayment of the bond issue launched by Terna S.p.A. in March 2011, totalling €1,250 million, partially offset by the green bond issue launched by Terna on 16 June 2021, with a nominal value of €600 million;
an increase in bank borrowings (up €241.5 million), primarily as a result of the drawdown of new bank facilities, amounting to €343.0 million, after repayments of existing borrowings;
an increase in short-term borrowings (up €262.6 million), essentially due to the Parent Company's drawdown of amounts obtained under short-term credit facilities;
a reduction in the fair value of derivative financial instruments (down €49.2 million), primarily due to movements in the derivatives held and in market interest rates;
a reduction in other net financial liabilities (down €28.6 million) following payment, in the first nine months of 2021, of accrued interest on financial products;
an increase in financial assets (up €355.6 million), primarily due to an increase in the Group's holdings of Italian government securities and movements in the prices of such securities;
a reduction in cash and cash equivalents (down €1,080.6 million). Cash amounts to €1,608.4 million at 30 September 2021, and includes €1,131.9 million invested in short-term, readily convertible deposits and €476.5 million held in bank current accounts and in the form of cash in hand.

Terna's shares

Terna S.p.A. has been listed on Borsa Italiana's screen-based trading system (Mercato Telematico Azionario) since 23 June 2004. From the date of floatation to the end of September 2021, the share price has risen 261% (a capital gain), providing a Total Shareholder Return (TSR4 ) of 810%, ahead of both the Italian market (the FTSE MIB, up 69%) and the relevant European sector index (DJ Stoxx Utilities), which is up 271%.

Europe's leading stock markets ended the first nine months of 2021 in positive territory, driven by the decision by central banks to maintain loose monetary policies. Milan rose 15.5% during the period, whilst Paris and Frankfurt were up 17.4% and 8.6%, respectively. Madrid rose 9.0% and London 9.7%.

Performance of Terna's shares

Terna's shares closed the period at a price of €6.136, having fallen 1.82% (DJ Stoxx Utilities down 6.43%). The daily average volume traded during the period amounted to approximately 5.2 million. The share price reached a new all-time high of €7.184 on 19 August 2021. It should be noted that 21 June was the ex-dividend date for the final dividend for 2020, amounting to 17.86 euro cents per share.

PERFORMANCE OF TERNA'S SHARES (share price performance from 1 January to 30 September 2021)

Source: Bloomberg

⁴ Total Shareholder Return (TSR): total return on an equity investment, calculated as the sum of:

I. capital gain: the change in the share price (difference between the price at the end and at the beginning of the relevant period) as a percentage of the price at the beginning of the period;

II. reinvested dividends: the ratio between dividends per share paid out during the period and the share price at the beginning of the period. Dividends are assumed to have been reinvested in the shares.

The Group's strategy			The energy environment			The Group's business		Performance	Annexes

Terna's share price fell 1.82% in the first nine months of 2021, outperforming the relevant European sector index (DJ Stoxx Utilities), which fell 6.43%. The FTSE MIB, on the other hand, ended the period up 15.5%.

WEIGHTING OF TERNA'S SHARES	9M 2021	9M 2020
> on the FTSE MIB	2.00%	2.72%

Source: Borsa Italiana

Ratings

	SHORT-TERM	MEDIUM/ LONG-TERM	OUTLOOK
Terna S.p.A.
Standard & Poor's	A-2	BBB+	Positive
Moody's	Prime-2	Baa2	Stable
Scope	S-1	A-	Stable
Italian state
Standard & Poor's	A-2	BBB	Positive
Moody's	Prime-3	Baa3	Stable
Scope	S-2	BBB+	Stable

Following confirmation of the BBB/A-2' rating assigned to Italian government bonds and the upgrade of the related outlook from stable to positive, on 29 October, S&P Global Ratings has as a result confirmed Terna S.p.A.'s long- and short-term ratings (BBB+' and `A-2', respectively) and upgraded the outlook from stable to positive.

Declaration

of the manager responsible for financial reporting in accordance with paragraph 2 of art. 154-bis of Legislative Decree 58/1998

The manager responsible for financial reporting, Agostino Scornajenchi, declares, pursuant to paragraph 2 of article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this Consolidated Interim Financial Report for the nine months ended 30 September 2021 is consistent with the underlying accounting records.

Alternative performance measures (APMs)

In accordance with the guidelines in ESMA/2015/1415, the APMs used in this Consolidated Interim Financial Report are described below.

MEASURE	DESCRIPTION
OPERATING RESULTS
Operating profit/(loss) - EBIT	is an indicator of operating performance obtained by adding Net financial income/(expenses) to Profit/(Loss) before tax.
Gross operating profit/(loss) – EBITDA	is an indicator of operating performance obtained by adding "Amortisation, depreciation and impairment losses" to Operating profit/(loss) (EBIT).
TAX RATE	is the amount of tax paid as a proportion of pre-tax profit and is based on the ratio of "Income tax expense" to "Profit/(Loss) before tax".
FINANCIAL POSITION
Net working capital	is an indicator of financial position, showing the Group's liquidity position; it is based on the difference between Current assets and Current liabilities of a non-financial nature, as presented in the statement of financial position.
Gross invested capital	is an indicator of financial position, showing the Group's total assets and is obtained by adding Net non-current assets and Net working capital.
Net invested capital	is calculated by deducting Sundry provisions from Gross invested capital.
CASH FLOW
Net debt	is an indicator of the Group's financial structure and is obtained by deducting Cash and cash equivalents and Financial assets from Short- and long-term financial liabilities and the related derivative instruments.
Free cash flow	is the cash generated by operating activities less capital expenditure and is the difference between Cash flow from operating activities and Cash flow for investing activities.

The criteria used in preparing the reconciliation of the above APMs with the IFRS financial statements are described in the Annual Report for the year ended 31 December 2020.

The Group's strategy | The energy environment | The Group's business | Performance | Annexes

Other information

Additional information is presented below in accordance with specific statutory or industry requirements.

Treasury shares

The Parent Company holds a total of 3,095,192 treasury shares (equal to 0.154% of the share capital). These shares were purchased in implementation of the buyback programme to service (i) the Performance Share Plan 2020-2023, in the period between 29 June 2020 and 6 August 2020, and (ii) the Performance Share Plan 2021-2025, in the period between 31 May 2021 and 23 June 2021. The Company does not hold any additional treasury shares, including through subsidiaries5 .

The Parent Company does not directly or indirectly hold any shares in CDP Reti S.p.A. or Cassa Depositi e Prestiti S.p.A., nor has it purchased or sold any such shares during the first nine months of 2021.

Related party transactions

Information on related party transactions is provided in the Annual Report for the year ended 31 December 2020.

Participation in the regulatory simplification process introduced by CONSOB Resolution 18079 of 20 January 2012

Information on participation in the simplified process introduced by the CONSOB is provided in the Annual Report for the year ended 31 December 2020.

⁵ In this regard, see the press release published on 10 August 2020 and 28 June 2021, available at the following links: https://download.terna.it/terna/2020.08.10_CS%20TERNA%20operazioni%20su%20azioni%20proprie%20 CHIUSURA%20ITA__8d83d42cfd43cb6.pdf

https://download.terna.it/terna/Terna_operazioni_su_azioni_proprie_conclusione_programma_8d93a651f5f9ffb.pdf

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Terna — Interim / Quarterly Report 2021

4300_rns_2021-11-10_b0752a09-3caf-4205-ab8f-fd58c74d7315.pdf

We are one of Europe's leading electricity transmission grid operators.

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Terna's share price

Financial highlights

About Terna

In our role as Transmission Operator, we conduct grid planning, development and maintenance

What we do

Terna and the Covid-19 emergency

The energy transition

Terna and its investment strategies have a crucial role to play in managing the radical transformation needed to decarbonise consumption

The challenges

Terna's role: driving the transformation

We are focusing on four areas of intervention that have a role to play in achieving decarbonisation targets.

Partnerships: together for the transition

Highlights

AWARDS AND SUSTAINABILITY

FINANCE

On 8 June, the Euro Medium Term Note (EMTN) Programme was renewed and increased to €9 billion.

BUSINESS ENABLERS

Structure of the Group

INTRODUCTION The Terna Group's consolidated interim financial report for the nine months ended 30 September 2021, which has not been audited, has been prepared on a voluntary basis, pursuant to art. 82-ter of the CONSOB's Regulations for Issuers (as amended by CONSOB Resolution 19770

Contents

The Group's strategy 19 The Company and our strategy 20

ecologicaltransition #TernaPlan #DrivingEnergy

The Company and our strategy

Outlook

Our people

The measures introduced in response to the Covid-19 emergency

Initiatives of the period

Innovation

2021-2025 INNOVATION PLAN

Open Innovation initiatives

The academic world

• Agreements with universities

• Start-up Intelligence programme

Innovators

• International Innovation: Digital Scaleup Summit

• Next Energy 5

• Maker Faire 2021

• SMAU 2021

Terna Community

• Workshop on the Innovation Landscape

• Terna Ideas

Corporate

• Open Italy

Innovation projects

Innovation clusters

Project streams

• System of systems

• Digital sustainable assets

• Enhanced system operation

- OSMOSE

- Distributed generation observability

• Safety

• New normal

INTELLECTUAL CAPITAL

ecologicaltransition #electricitysystem #DrivingEnergy

2 The energy environment

Electricity demand

Demand for electricity in Italy

MONTHLY DEMAND FOR ELECTRICITY IN ITALY*

Meeting demand and energy production

sustainability #innovation #DrivingEnergy

Regulated Activities

Transmission and dispatching

The Group's capital expenditure

Power lines:

Cables:

Substations:

MAIN REGULATED WORKS CARRIED OUT DURING THE PERIOD

DEVELOPMENT PLAN – €326.4 million

SECURITY PLAN – €159.2 million

PROJECTS TO RENEW ELECTRICITY ASSETS – €320.3 million

Consents processes

Projects initiated

Quality of service

CONTINUITY INDICATORS

Terna Interim / Quarterly Report 2021

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