Terna — Interim / Quarterly Report 2023

May 5, 2023

1Q 2023 Consolidated Results

Rome, May 5 th 2023

Latest main achievements

Significant improvement in all economic and financial indicators

Tyrrhenian Link: second and third tranches of the €1.9 billion loan provided by EIB

€750 million bond issue successfully launched

Focus on execution

Demand Evolution – Last 12 months

DEMAND AS REPORTED (TWh)	1Q23	1Q22	Δ %
	77.4	80.6	-4.0%

Guaranteeing a safe management of the electricity system

1Q 2023 Key Numbers

	1Q 2023	1Q 2022	∆ %
	Actual €mn	Actual €mn
Revenues	713	644	+11%
EBITDA	500	461	+8%
Group Net Income1	200	192	+4%
Capex	315	293	+7%
		FY 2022
Net Debt	8,847	8,576

Solid P&L results and strong capex delivery

Revenues

Double digit increase in Revenues

Note: figures may not add up due to rounding 1. Including IFRIC12

Revenues Analysis

€mn NON REGULATED +16 +19.7%

Revenues driven by Regulated Activities increase

Opex

Opex dynamic driven by organic activities increase

Note: figures may not add up due to rounding 1. Including IFRIC12

10

EBITDA

EBITDA growth driven by Regulated Activities

From EBITDA to Net Income

€mn

+4% Net Income increase

Note: figures may not add up due to rounding 1. Attributable to Terna.

Capex

+7% YoY capex acceleration

Note: figures may not add up due to rounding

1. Of which about € 4mn of Capitalized Financial Charges in 1Q2022 and € 14mn in 1Q2023

Cash Flow & Net Debt Evolution

1. Including Other Fixed Assets Changes

2. Including Assets Held for Sale, Cash Flow Hedge reserve and other

Net Debt Evolution & Financial Structure

Maintain a solid financial structure

Consolidated Income Statement¹

€ mn	1Q23	1Q22	Δmn	Δ%
Total Revenue	713	644	68	10.6%
Regulated Activities	614	562	52	9.2%
Transmission	508	485	23	4.8%
Dispatching	80	58	22	37.0%
Other²	15	9	7	75.0%
IFRIC12	10	10	0	4.1%
Non Regulated Activities	99	82	16	19.7%
Total Costs	213	183	29	16.1%
Regulated Activities	128	114	14	12.7%
Labour Costs	68	63	5	8.4%
External Costs	41	35	7	19.7%
Other²	8	6	2	30.2%
IFRIC12	10	10	0	4.1%
Non Regulated Activities	83	68	15	21.9%
International Activities	1	1	0	0.0%
EBITDA	500	461	39	8.4%
D&A	187	168	19	11.3%
EBIT	313	294	20	6.7%
Net Financial Charges	32	24	8	31.6%
Pre Tax Profit	281	269	12	4.5%
Taxes	81	76	5	6.7%
Tax Rate (%)	28.9%	28.3%	-	0.6 pp
Net Income	200	193	7	3.6%
Profit/(Loss) From Discontinued Operations Net Financial Charges	0	-1	1	-54.5%
Total Net Income	200	192	8	3.9%
Minority Interest	-1	0	-1	-450.0%
Group Net Income	200	192	8	4.4%

2. Including Quality of Service

Consolidated Balance Sheet

€ mn	1Q23	FY22	Δmn
PP&E	16,299	16,201	98
Intangible Asset	777	776	1
Financial Inv. and Other	517	509	8
Total Fixed Assets	17,593	17,485	107
Net WC	-2,399	-2,733	334
Funds	-54	-68	14
Net Capital Invested	15,139	14,684	455
Net Assets Held for Sale	65	61	4
Total Net Capital Invested	15,205	14,745	459
Financed by:
Consolidated Net Debt	8,847	8,576	271
Total Shareholder's Equity	6,357	6,169	188
Total	15,205	14,745	459

Consolidated Cash Flow

1Q23	1Q22
200	192
183	167
-14	12
368	371
-309	151
59	522
-315	-293
-256	228
-4	-16
-11	1,107
-271	1,319

2023 Total Grid Fee*

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THIS DOCUMENT MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON. THE INFORMATION CONTAINED HEREIN AND OTHER MATERIAL DISCUSSED AT THE CONFERENCE CALL MAY INCLUDE FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT THE COMPANY'S BELIEFS AND EXPECTATIONS. THESE STATEMENTS ARE BASED ON CURRENT PLANS, ESTIMATES, PROJECTIONS AND PROJECTS, AND CANNOT BE INTERPRETED AS A PROMISE OR GUARANTEE OF WHATSOEVER NATURE.

HOWEVER, FORWARD-LOOKING STATEMENTS INVOLVE INHERENT RISKS AND UNCERTAINTIES AND ARE CURRENT ONLY AT THE DATE THEY ARE MADE. WE CAUTION YOU THAT A NUMBER OF FACTORS COULD CAUSE THE COMPANY'S ACTUAL RESULTS AND PROVISIONS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD-LOOKING STATEMENT. SUCH FACTORS INCLUDE, BUT ARE NOT LIMITED TO: TRENDS IN COMPANY'S BUSINESS, ITS ABILITY TO IMPLEMENT COST-CUTTING PLANS, CHANGES IN THE REGULATORY ENVIRONMENT, DIFFERENT INTERPRETATION OF THE LAW AND REGULATION, ITS ABILITY TO SUCCESSFULLY DIVERSIFY AND THE EXPECTED LEVEL OF FUTURE CAPITAL EXPENDITURES. THEREFORE, YOU SHOULD NOT PLACE UNDUE RELIANCE ON SUCH FORWARD-LOOKING STATEMENTS. TERNA DOES NOT UNDERTAKE ANY OBLIGATION TO UPDATE FORWARD-LOOKING STATEMENTS TO REFLECT ANY CHANGES IN TERNA'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGES IN EVENTS.

EXECUTIVE IN CHARGE OF THE PREPARATION OF ACCOUNTING DOCUMENTS "AGOSTINO SCORNAJENCHI" DECLARES, PURSUANT TO PARAGRAPH 2 OF ARTICLE 154-BIS OF THE CONSOLIDATED LAW ON FINANCE, THAT THE ACCOUNTING INFORMATION CONTAINED IN THIS PRESENTATION, FOR WHAT CONCERNS THE ACTUAL FIGURES, CORRESPONDS TO THE DOCUMENT RESULTS, BOOKS AND ACCOUNTING RECORDS.

Notes