9M 2023 Consolidated Results

Rome, November 8th 2023

9M 2023 Results 7

Annexes 16

Latest main achievements

Tyrrhenian link fully authorized
Final project of Sa.Co.I. 3 authorized
Adriatic link: contract secured for the supply of power cables

ACTIVITIES SUSTAINABILITY ACHIEVEMENTS

▪ Terna reconfirmed as global sustainability leader

- SHAREHOLDERS REMUNERATION

11.46 € cents/share approved by today's Board of Director as 2023 Interim Dividend

Well on track on execution

Demand Evolution – Last 12 months

Ensuring the security of supply in a challenging scenario

9M 2023 Key Numbers

	9M 2023	9M 2022	∆ %
	Actual €mn	Actual €mn
Revenues	2,247	1,992	+13%
EBITDA	1,556	1,412	+10%
Group Net Income1	642	587	+9%
Capex	1,434	1,033	+39%
		FY 2022
Net Debt	9,486	8,576

Strong growth in all P&L lines and Capex

Revenues

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

Revenues Analysis

NON REGULATED AND INTERNATIONAL

€mn

Higher contribution from Regulated activities

Opex

Operating costs evolution driven by higher volume of activity

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

EBITDA

Regulated activities as EBITDA growth driver

From EBITDA to Net Income

+9% 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 € 17mn of Capitalized Financial Charges in 9M2022 and € 36mn in 9M2023

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

Maintaining a solid financial structure

Consolidated Income Statement¹

€ mn	9M23	9M22	Δmn	Δ%
Total Revenue	2,247 1,904	1,992 1,720	255 184	12.8% 10.7%
Regulated Activities
Transmission	1,564	1,485	79	5.3%
Dispatching	246	172	74	43.3%
Other²	49	27	22	80.6%
IFRIC12	45	36	9	23.9%
Non Regulated and International Activities	343	272	71	25.9%
Total Costs	691	580	111	19.1%
Regulated Activities	396	344	52	15.1%
Labour Costs	201	181	20	11.3%
External Costs	128	112	16	14.7%
Other²	22	15	7	44.3%
IFRIC12	45	36	9	23.9%
Non Regulated Activities	292	232	60	26.1%
International Activities	3	5	-2	-39.1%
EBITDA	1,556	1,412	144	10.2%
D&A	577	516	61	11.7%
EBIT	980	896	83	9.3%
Net Financial Charges	81	56	25	44.2%
Pre Tax Profit	899	840	58	7.0%
Taxes	262	237	25	10.5%
Tax Rate (%)	29.1%	28.2%	-	0.9 pp
Net Income	637	603	34	5.6%
Profit/(Loss) From Discontinued Operations Net Financial Charges	1	-15	16	105.4%
Total Net Income	638	589	49	8.4%
Minority Interest	-4	2	-6	-350.0%
Group Net Income	642	587	55	9.3%

2. Including Quality of Service

Consolidated Balance Sheet

€ mn	Sep. 30,2023	Dec. 31,2022	Δmn
PP&E	17,012	16,201	811
Intangible Asset	807	776	31
Financial Inv. and Other	504	509	-5
Total Fixed Assets	18,323	17,485	838
Net WC	-2,529	-2,733	204
Funds	-34	-68	34
Net Capital Invested	15,760	14,684	1,076
Net Assets Held for Sale	81	61	19
Total Net Capital Invested	15,841	14,745	1,095
Financed by:
Consolidated Net Debt	9,486	8,576	910
Total Shareholder's Equity	6,355	6,169	186
Total	15,841	14,745	1,095

Consolidated Cash Flow

9M23	9M22
638	589
564	514
-34	6
1,168	1,108
-172	541
995	1,649
-1,434	-1,033
-438	616
-19	-91
-452	827
-910	1,351

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.

THE CONTENT OF THIS DOCUMENT HAS A MERELY INFORMATIVE AND PROVISIONAL NATURE AND THE STATEMENTS CONTAINED HEREIN HAVE NOT BEEN INDEPENDENTLY VERIFIED. NEITHER THE COMPANY NOR ANY OF ITS REPRESENTATIVES SHALL ACCEPT ANY LIABILITY WHATSOEVER (WHETHER IN NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY FROM THE USE OF THIS DOCUMENT OR ITS CONTENTS OR OTHERWISE ARISING IN CONNECTION WITH THIS DOCUMENT OR ANY MATERIAL DISCUSSED DURING THE PRESENTATION.

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.