Terna — Interim / Quarterly Report 2024

Jul 26, 2024

1H 2024 Consolidated Results

Rome, July 26th 2024

Highlights	3
1H 2024 Results	8
Closing Remarks	17

Annexes 19

Latest main achievements

• • Reinforcing Terna's leadership in the Twin Transition
• • Included in global ESG indexes and awarded for its sustainability best practices

▪ New ESG-linked Credit Facilities

▪ 2023 Final Dividend of 22.50 €cents/ share paid in June

Grid development and digitalization as drivers for sustainable growth

Main projects' execution

	Authorization	Main Procurement contracts
Tyrrhenian Link	✓	✓
Italy-Tunisia	✓	Tenders ongoing
Adriatic Link	✓	✓
SACOI 3	✓	✓

Focus on Execution

Demand Evolution – Last 12 months

In May and June, the highest ever monthly coverage of RES on national demand

Note: 2023-2024 preliminary figures

Highlights

1H 2024 Key Numbers

	1H 2024	1H 2023	∆ vs 1H 2023
	Actual €mn	Actual €mn
Revenues	1,754	1,485	+18%
EBITDA	1,257	1,019	+23%
Group Net Income1	545	411	+32%
Capex	1,042	831	+26%
Net Debt2	10,329	10,494

Double digit growth in all P&L lines and Capex

1. Attributable to Terna; 2. 2023 Value related to FY

Revenues

Revenues increase in all business areas

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

Revenues Analysis

REGULATED NON-REGULATED AND INTERNATIONAL

Regulated and Non Regulated revenues as growth driver

Note: figures may not add up due to rounding

Opex

Operating cost evolution reflecting Non Regulated activities increase

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

EBITDA

EBITDA growth driven by Regulated Activities

Note: figures may not add up due to rounding

From EBITDA to Net Income

€mn

+32% increase in Group Net Income

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

Capex

Record-breaking Capex

Note: figures may not add up due to rounding; 1. Of which about 32 €mn of Capitalized Financial Charges in 1H24 and 27 €mn in 1H23

Cash Flow & Net Debt Evolution

Operating cash flow generation to support capex plan

Note: figures may not add up due to rounding; 1. Including Other Fixed Assets Changes; 2. Including Assets Held for Sale, Cash Flow Hedge reserve, Hybrid Green Bonds and other

Net Debt Evolution & Financial Structure

Maintaining a solid and diversified financial structure

1. Percentages calculated on Gross Debt nominal value; 2. IAS value; 3 Key ratios calculated on Medium/Long Term Debt

Closing Remarks

Well on track on the execution of Capex Plan

Maintaining financial stability and low-risk profile

Confirming 2024 Guidance

Annexes

Consolidated Income Statement1

€ mn	1H24	1H23	Amn	A%
Total Revenue	1,754	1.485	269	18.1%
Regulated Activities	1.473	1.263	209	16.6%
Transmission	1,214	1,043	171	16.4%
Dispatching	202	162	40	25.0%
Other2	23	32	-9	-28.8%
IFRIC12	34	27	7	25.2%
Non Regulated and International Activities	282	222	60	26.9%
Total Costs	497	466	31	6.7%
Regulated Activities	260	274	-13	-4.9%
Labour Costs	127	140	-13	-9.4%
External Costs	87	92	-5	-5.0%
Other2	13	15	-2	-15.4%
IFRIC12	34	27	7	25.2%
Non Regulated Activities	235	191	44	23.2%
International Activities	2	2	0	5.6%
EBITDA	1,257	1.019	238	23.4%
D&A	421	380	41	10.8%
EBIT	836	639	197	30.8%
Net Financial Charges	63	59	র্ব	7.3%
Pre Tax Profit	773	580	193	33.2%
Taxes	227	169	59	34.8%
Tax Rate (%)	29.4%	29.1%		0.3 pp
Net Income	546	411	134	32.6%
Profit/(Loss) From Discontinued Operations	-1	-4	3	82.9%
Total Net Income	545	408	137	33.6%
Minority Interest	0	-4	4	-102.9%
Group Net Income	545	411	133	32.4%

Notes: figures may not add up due to rounding; 1) Managerial Accounting 2) Including Quality of Service

Annexes

Consolidated Balance Sheet

€ mn		Jun. 30,2024 Dec. 31,2023	Amn
PP&F	18,161	17,597	564
Intangible Asset	890	867	23
Financial Inv. and Other	384	501	-117
Total Fixed Assets	19.435	18,965	470
Net WC	-1.890	-2.175	284
Funds	-2	-33	31
Net Capital Invested	17,542	16,757	785
Net Assets Held for Sale	75	80	-6
Total Net Capital Invested	17,617	16,838	779
Financed by:
Consolidated Net Debt	10.329	10.494	-166
Total Shareholder's Equity	7,288	6,343	945
Total	17.617	16.838	779

Annexes

Consolidated Cash Flow

€ mn	1H24	1123
Total Net Income	545	408
D&A 1	417	371
Net Change in Funds	-31	-29
Operating Cash Flow	931	750
A Working Capital & Other2	-128	-351
Cash Flow from Operating Activities	802	398
Capital Expenditures	-1.042	-831
Free Cash Flow to Equity	-240	-432
Net Assets Held for Sale	6	-15
Dividends & Equity®	400	-435
Change in Net Cash (Debt)	166	-882

Notes: figures may not add up due to rounding; 1) Net of assets' disposal 2) Including Other Fixed Assets Changes 3) Including Cash Flow Hedge accruals, Hybrid Green Bond and other

THIS DOCUMENT HAS BEEN PREPARED BY TERNA S.P.A. (THE "COMPANY") FOR THE SOLE PURPOSE DESCRIBED HEREIN. IN NO CASE MAY IT BE INTERPRETED AS AN OFFER OR INVITATION TO SELL OR PURCHASE ANY SECURITY ISSUED BY THE COMPANY OR ITS SUBSIDIARIES.

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