1Q2021 Consolidated Results

May 12th 2021

Agenda

1Q21 Results 6

Δ %

1Q21 1Q20

Demand Evolution – Last 12 months Highlights (1/2)

1Q 2021 data:

National Demand at 79 TWh, o/w ~34% covered by RES
Net Total Production at 67 TWh, o/w 40% covered by RES

March 2021 demand returned at pre-Covid levels

1Q 2021 Key Numbers Highlights (2/2)

	1Q 2021	1Q 2020	∆ vs 1Q2020
Revenues	622	567	+10%
EBITDA	454	434	+5%
Group Net Income1	190	187	+2%
Capex	242	218	+11%

	1Q 2021	FY 2020
Net Debt	9,321	9,173

P&L growth and robust capex acceleration

1. Attributable to Terna

Note: 2020 figures exclude Brugg Cables contribution

Revenues 1Q 2021 results

Revenues increase driven by Regulated and Non Regulated Insourcing attività di O&M Rete FS

Note: figures may not add up due to rounding

1. Including IFRIC12
2. Construction margin, including IFRIC12

Revenues Analysis 1Q 2021 results

Regulated investments and Brugg acquisition as growth drivers

Insourcing attività di O&M Rete FS Operating costs evolution driven by perimeter change

EBITDA 1Q 2021 results

Insourcing attività di O&M Rete FS EBITDA growth mainly driven by Regulated Actvities

From EBITDA to Net Income 1Q 2021 results

Well on track to reach all targets

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

Capex 1Q 2021 results

Double Insourcing attività di O&M Rete FS -digit capex acceleration to drive energy transition

Cash Flow & Net Debt Evolution 1Q 2021 results

Operating cash flow generation covering investment needs

Note: figures may not add up due to rounding

1. Including Other Fixed Assets Changes

2. Including Cash Flow Hedge reserve and other

Net Debt Evolution & Financial Structure 1Q 2021 results

GROSS DEBT BREAKDOWN KEY RATIOS ¹ ¹

Maturity ~5 years

Diversified and well-balanced financial structure

2. IAS value

Consolidated Income Statement¹ Annex

€ mn	1Q21	1Q20	Δmn	Δ%
Total Revenue	622	567	54	9.6%
Regulated Activities	537	517	20	3.9%
Transmission	498	475	23	4.9%
Dispatching	27	27	0	0.2%
2 Other	4	10	-6	-56.8% -57.4%
IFRIC12	6	4	2	54.8%
Non Regulated Activities	79	44	35	79.5%
International Activities	6	7	-1	-10.0%
Total Costs	168	133	35	26.2%
Regulated Activities	104	98	5	5.5%
Labour Costs	56	57	0	-0.7%
External Costs	35	34	1	3.3%
2 Other	5	3	2	74.1%
IFRIC12	6	4	2	54.8%
Non Regulated Activities	62	33	29	87.0%
International Activities	2	2	1	36.5%
EBITDA	454	434	19	4.5%
D&A	163	152	11	7.0%
EBIT	291	282	9	3.1%
Net Financial Charges	22	19	2	13.0%
Pre Tax Profit	269	263	6	2.4%
Taxes	78	76	2	2.5%
Tax Rate (%)	29.1%	29.1%	0,0 pp
Total Net Income	191	186	4	2.4%
Minority Interest	0.3	-0.3	0.6	-200.0%
Group Net Income	190	187	4	2.0%

Note: figures may not add up due to rounding 1. Managerial Accounting

2. Including Quality of Service

Annex

Consolidated Balance Sheet

€ mn	Mar. 31,2021	Dec. 31,2020	Δmn
PP&E	14,634	14,560	74
Intangible Asset	577	578	-1
Financial Inv. and Other	503	508	-5
Total Fixed Assets	15,714	15,646	68
Net WC	-1,654	-1,936	282
Funds	-107	-121	15
Net Capital Invested	13,953	13,588	365
Financed by:
Consolidated Net Debt	9,321	9,173	148
Total Shareholder's Equity	4,632	4,416	216
Total	13,953	13,588	365

Consolidated Cash Flow Annex

€ mn	1Q21	1Q20
Total Net Income	191	186
D&A1	157	151
Net Change in Funds	-15	-32
Operating Cash Flow	333	306
2 Δ Working Capital & Other	-265	-191
Cash Flow from Operating Activities	68 115
Capital Expenditures	-242	-218
Free Cash Flow to Equity	-174	-103
3 Dividends & Equity	26	-47
Change in Net Cash (Debt)	-148	-150

2. Including Other Fixed Assets Changes

3. Including Cash Flow Hedge accruals and other

2021 Total Grid Fee* Annex

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