1H 2023 Consolidated Results

Rome, July 27th 2023

Latest main achievements

REGULATED ACTIVITIES

▪ Well on track on construction activities

▪ Terna confirmed as Italian and global sustainability leader

▪ ESG-linked Revolving Credit Facility of €1.8 bn refinanced

SHAREHOLDERS REMUNERATION

▪ 20.83 € cents/share paid in June as of 2022 Final Dividend

Towards a sustainable future

Demand Evolution – Last 12 months

DEMAND AS REPORTED (TWh)	1H23	1H22
	150.5	159.0	-5.3%

Ensuring a reliable, efficient and safe electricity system

1H 2023 Key Numbers

	1H 2023	1H 2022	∆ %
	Actual €mn	Actual €mn
Revenues	1,485	1,331	+12%
EBITDA	1,019	947	+8%
Group Net Income1	411	398	+3%
Capex	831	661	+26%
		FY 2022
Net Debt	9,458	8,576

Record level on Capex and P&L figures

Revenues

Double digit increase in Revenues

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

Revenues Analysis

Regulated and Non Regulated revenues as growth driver

Opex

Operating costs evolution reflecting organic activities increase

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

EBITDA

8% EBITDA Growth

From EBITDA to Net Income

Robust P&L results

Capex

+26% YoY capex acceleration

Note: figures may not add up due to rounding

1. Of which about € 10mn of Capitalized Financial Charges in 1H2022 and € 27mn in 1H2023

Cash Flow & Net Debt Evolution

Net Debt evolution mainly driven by investment activities

1. Including Other Fixed Assets Changes

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

Net Debt Evolution & Financial Structure

Solid and diversified financial structure

Closing Remarks

Consolidated Income Statement¹

€ mn	1H23	1H22	Δmn	Δ%
Total Revenue	1,485	1,331	155	11.6%
Regulated Activities	1,263	1,154	110	9.5%
Transmission	1,043	1,000	43	4.3%
Dispatching	162	113	49	43.0%
Other²	32	18	14	74.3%
IFRIC12	27	23	5	20.0%
Non Regulated Activities	222	177	45	25.3%
Total Costs	466	384	82	21.4%
Regulated Activities	274	231	43	18.4%
Labour Costs	140	126	14	11.0%
External Costs	92	74	18	24.5%
Other²	15	9	6	71.3%
IFRIC12	27	23	5	20.0%
Non Regulated Activities	191	150	41	27.2%
International Activities	2	3	-1	-40.0%
EBITDA	1,019	947	72	7.6%
D&A	380	340	41	12.0%
EBIT	639	607	32	5.2%
Net Financial Charges	59	36	23	63.3%
Pre Tax Profit	580	571	9	1.5%
Taxes	169	160	8	5.0%
Tax Rate (%)	29.1%	28.1%	-	1.0 pp
Net Income	411	411	1	0.2%
Profit/(Loss) From Discontinued Operations Net Financial Charges	-3	-10	7	-65.3%
Total Net Income	408	401	7	1.8%
Minority Interest	-4	3	-6	-
Group Net Income	411	398	13	3.3%

2. Including Quality of Service

Consolidated Balance Sheet

€ mn	1H23	FY22	Δmn
PP&E	16,623	16,201	422
Intangible Asset	791	776	15
Financial Inv. and Other	507	509	-2
Total Fixed Assets	17,921	17,485	436
Net WC	-2,357	-2,733	376
Funds	-40	-68	29
Net Capital Invested	15,524	14,684	840
Net Assets Held for Sale	76	61	15
Total Net Capital Invested	15,600	14,745	855
Financed by:
Consolidated Net Debt	9,458	8,576	882
Total Shareholder's Equity	6,142	6,169	-27
Total	15,600	14,745	855

Consolidated Cash Flow

€ mn	1H23	1H22
Total Net Income	408	401
D&A1	371	338
Net Change in Funds	-29	2
Operating Cash Flow	750	740
2 Δ Working Capital & Other	-351	249
Cash Flow from Operating Activities	398	989
Capital Expenditures	-831	-661
Free Cash Flow to Equity	-432	328
Net Assets Held for Sale	-15	-88
3 Dividends & Equity	-435	769
Change in Net Cash (Debt)	-882	1,009

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