Terna — Investor Presentation 2025

Mar 25, 2025

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Agenda

Achievements 2024	2
Scenario	4
1 0 -year National Development Plan	12
Strategy	15
FY 2024 Results	21
2024 – 2028 Group Financial Targets	28
Closing Remarks	36
Annexes	38

2024 Key Indicators

up high-double digits

Terna reconfirmed as global

sustainability leader

Achievements 2024

Main highlights

A solid base for future growth

EU and Italian decarbonization targets for 2030

FOCUS ON ITALIAN RES

5

Source: National Energy and Climate Plan (NECP) 2024 * 2024 provisional data

System towards Energy Transition: Terna's Role

Robust acceleration in RES installed capacity

RES capacity evolution

7

FER 2 Decree to enable the development of innovative RES FER X Decree to accelerate solar and onshore wind New supportive measures to achieve NECP Policy 2030

1. Source: National Energy and Climate Plan (NECP) 2024

Supporting integration of intermittent Renewables through new utility-scale Storage

Current Storage Landscape and NECP 2030 Targets

8

Source: Terna's 10-years National Development Plan 2025

MACSE incentive mechanism will support growth of utility-scale Storage by accompanying development of Renewable capacity

Source: Scenarios Description Document (October 2024) developed jointly by Terna and Snam. 1. On top of the existing Hydro-pumping installed capacity.

Transition enables energy independence

Evolution of fixed/variable costs for the electricity system Dependence of the Italian electricity system on imported commodities from foreign countries*

Source: Terna Estimates Source: Terna Estimates *commodities include imported electricity

The development of the transmission network will contribute to energy independence, achieve decarbonization targets and enable greater stability of electricity bills for end users

Extreme weather events rapidly increasing due to climate change

Source: Legambiente - Bilancio Città Clima 2024

An adaptive grid infrastructure is crucial to address unprecedented challenges

Terna enables the transition and energy independence

10-year National Development Plan

10-year National Development Plan

Overview

Creating a safer and more efficient system

10-year National Development Plan

Main interzonal initiatives and interconnections with foreign countries

Developing the infrastructure of the future

14

GR.ITA.2 First pole: +500 MW by 2033

GR.ITA.2 Second pole: +500 MW by 2035 *The network scheme of the project is under further analysis with the TSO counterpart Swissgrid to identify the most suitable solutions to implement 1. Possibility of bringing forward the complete project within the 2025-2034 planning horizon is under evaluation.

Further increase in the five-year capex plan

16.6 billion euros allocated to the national electricity grid, a new historical record of regulated investments

Notes: figures may not add up due to rounding 1. Includes: Non-Regulated capex and capitalized financial charges

Planned investments continue at a faster pace in permitting, procurement, and execution

Projects covered at ~90% for authorizations and ~80% for procurement despite +1.1 billion euros of regulated capex compared to the previous plan

Non-Regulated Activities integrated into Terna's business model

Maximizing profitability leveraging fast growing markets

Digital Transformation scale-up

ESG commitments and ambitions

FY 2024 Key Numbers

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		FY 2024	FY 2023	∆ vs FY 2023
	Actual €mn	Guidance €bn	Actual €mn
Revenues	3,680	3.61	3,187	+15%
EBITDA	2,566	2.50	2,169	+18%
Group Net Income1	1,062	~1.042	885	+20%
Capex	2,692	2.6	2,290	+18%
Net Debt	11,160		10,494

Double digit increase in all P&L lines. Guidance exceeded

Notes: 1. Attributable to Terna 2. Equivalent to old reported EPS guidance of 52 €/cents per share

Revenues

REGULATED NON-REGULATED & INTERNATIONAL

Growth driven by both Regulated and Non-Regulated activities

Notes: figures may not add up due to rounding

EBITDA

Regulated Activities as EBITDA growth driver

Notes: figures may not add up due to rounding

From EBITDA to Net Income

20% increase in Net Income

25

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

Capex

Strong Capex delivery to serve system needs

26

Note: figures may not add up due to rounding 1. Of which about 74 €mn of Capitalized Financial Charges in FY24 and 48 €mn in FY23

Cash Flow & Net Debt Evolution

Net debt evolution under control

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

Domestic Regulated Activities

9% RAB CAGR thanks to the acceleration of domestic regulated investments

Notes: 1. Gross of 0.1 €bn of EU Contributions 2. Gross of 1.1 €bn of EU Contributions 3. Gross of 1.0 €bn of EU Contributions 4. Updated 2021-2025 Plan in 2022 5. Calendar RAB including WIP. RAB inflation at 2.7% on average during the plan period * Includes the acquisition of the portion of Rome HV grid from Acea.

Domestic Regulated Activities

Highest regulated investment plan ever

Notes: Including EU contributions; figures may not add up due to rounding

Regulatory milestones

Start of ROSS Base

Towards ROSS model

Non-Regulated Activities

Guidance 2025 and 2028

FY 2024	FY 2025
		FY 2028
Actual €bn	Guidance €bn	Guidance €bn Plan 2024-2028 Plan 2024-2028 Update
3.68	4.03	5.19 4.60
2.57	2.70	3.36 3.25
1.06	1.08	1.10 1.19
2.7	3.4	17.7 16.5 Cumulated 2024-2028

CAGR 23-28: EBITDA +9%, Net Income +6%

Notes: P&L values restated for International deconsolidation 1. Including Regulated, Non-Regulated, capitalized financial charges and EU contributions

Yield & Growth

Providing long-term visibility and stability

Financial Efficiency and Financial Structure

• Gross Debt @ ~84% Fix rate1,2
• Average duration of ~6 years²
• Strong commitment to maintain current rating level
• Average Cost of Net Debt 2024-2028 @ 3.1%

CREDIT RATING					ESG RATING
		Terna		Sovereign	Advance Moody's ESG
	Rating	Outlook	Rating	Outlook	Negligible risk Sustainalytics
S&P	BBB+	Stable	BBB	Stable	S&P Global CSA 87/100 (Corporate Sustainability Assessment) score:
Moody's	Baa2	Stable	Baa3	Stable	CDP A (former Carbon Disclosure Project)
					Prime ISS ESG

Renewed commitment to maintain a solid financial structure

Notes: 1. As of FY2024 2. Calculated on medium-long term debt

Closing Remarks

Closing Remarks

Strengthening Terna's role in decarbonization and energy independence process, contributing to higher stability of electricity bills

• Focus on execution of our investment plan

Accelerating returns while maintaining financial stability

Ensuring a balanced mix of yield and growth

A Twin Transition for a Just Transition

2025 Total Grid Fee update¹

Notes: 1) ARERA Resolutions and Terna's preliminary estimates, net of pass-through items

Consolidated Income Statement¹

€ mn	FY24	FY23	Δmn	Δ%
Total Revenue	3,680	3,187	494	15.5%
Regulated Activities	3,096	2,670	426	16.0%
Transmission	2,424	2,108	316	15.0%
Dispatching	500	431	69	16.0%
Other²	60	51	9	17.9%
IFRIC12	113	81	32	40.1%
Non Regulated and International Activities	584	517	67	13.0%
Total Costs	1,114	1,018	96	9.4%
Regulated Activities	635	584	51	8.6%
Labour Costs	295	285	10	3.5%
External Costs	193	187	6	3.2%
Other²	34	31	2	7.4%
IFRIC12	113	81	32	40.1%
Non Regulated Activities	476	430	46	10.8%
International Activities	3	4	-1	-27.5%
EBITDA	2,566	2,169	398	18.3%
D&A	889	806	83	10.3%
EBIT	1,677	1,362	315	23.1%
Net Financial Charges	172	118	54	45.7%
Pre Tax Profit	1,506	1,245	261	21.0%
Taxes	455	364	91	24.9%
Tax Rate (%)	30.2%	29.3%	-	0.9 pp
Net Income	1,051	880	171	19.4%
Profit/(Loss) From Discontinued Operations Net Financial Charges	12	3	9	-364.0%
Total Net Income	1,063	883	180	20.4%
Minority Interest	1	-3	3	-123.1%
Group Net Income	1,062	885	177	19.9%

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

Consolidated Balance Sheet

€ mn	Dec. 31,2024	Dec. 31,2023	Δmn
PP&E	19,237	17,597	1,640
Intangible Asset	982	867	115
Financial Inv. and Other	485	501	-16
Total Fixed Assets	20,704	18,965	1,739
Net WC	-2,025	-2,175	149
Funds	10	-33	43
Net Capital Invested	18,689	16,757	1,932
Net Assets Held for Sale	15	80	-65
Total Net Capital Invested	18,704	16,838	1,867
Financed by:
Consolidated Net Debt	11,160	10,494	666
Total Shareholder's Equity	7,544	6,343	1,201
Total	18,704	16,838	1,867

Consolidated Cash Flow

€ mn	FY24	FY23
Total Net Income	1,063	883
D&A1	876	788
Net Change in Funds	-43	-35
Operating Cash Flow	1,896	1,636
2 Δ Working Capital & Other	-73	-536
Cash Flow from Operating Activities	1,823	1,100
Capital Expenditures	-2,692	-2,290
Free Cash Flow to Equity	-870	-1,190
Net Assets Held for Sale	65	-19
3 Dividends & Equity	138	-709
Change in Net Cash (Debt)	-666	-1,918

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

Disclaimer

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 "FRANCESCO BECCALI" 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

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Notes

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