Slide 1: Industrial Plan 2024-2028 Update
INDUSTRIAL | 2. PLAN 2s Ve A TE
Slide 2: Agenda
Agenda Achievements 2024 2 Scenario 4 10-year National Development Plan 12 Strategy 15 FY 2024 Results 21 2024 – 2028 Group Financial Targets 28 Closing Remarks 36 Annexes 38 1
Slide 3: Achievements 2024
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Slide 4: Achievements 2024: Main highlights
Achievements 2024 Main highlights Over €2.3bn authorised in 2024, including: 2024 Key Indicators up high-double digits Elmed Adriatic Link • Tyrrhenian Link, Adriatic Link, SA.CO.I.3: Construction sites launched • Signed Term Sheet for Terna reconfirmed as global acquisition of a portion of sustaina
Slide 5: Scenario
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Slide 6: EU and Italian decarbonization targets for 2030
Scenario EU and Italian decarbonization targets for 2030 EUROPE ITALY 2030 2030 CO2 emissions (FF55) (NECP'24) reduction (GHG reduction vs 1990) -55% -50% FOCUS ON ITALIAN RES RES share in electricity consumption PV and WIND installed capacities +57 GW 63% 107 GW 41% 50 GW 2024* 2030 2024 2030 (NECP
Slide 7: System towards Energy Transition: Terna's Role
Scenario System towards Energy Transition: Terna’s Role INFRASTRUCTURE RENEWABLES MARKET STORAGE DEVELOPMENT INTEGRATION DESIGN 6
Slide 8: Robust acceleration in RES installed capacity
Scenario Robust acceleration in RES installed capacity RES capacity evolution National RES Capacity Evolution1 [GW] New supportive measures to achieve NECP Policy 2030 GW 107 +57 50 79 43 37 37 FER X Decree FER 2 Decree 25 30 28 12 12 13 to enable the to accelerate solar development of 2022 2023 Act
Slide 9: Supporting integration of intermittent Renewables through new utility-scale Storage
Scenario Supporting integration of intermittent Renewables through new utility-scale Storage Current Storage Landscape and NECP 2030 Targets Electrochemical Storage systems in operation Storage capacity needed by 20301 [GWh] by end 2024 14 Capacity 72 GWh 8 50 12.9 GWh Small Scale Capacity Market Ut
Slide 10: Transition enables energy independence
Scenario Transition enables energy independence Dependence of the Italian electricity system on imported Evolution of fixed/variable costs for the electricity system commodities from foreign countries* ~ 20 ~ 𝟏ൗ𝟑 ~ 𝟐ൗ𝟑 ~ 20 From Variable to Fixed ~60% ~ 37% ~ 𝟐ൗ𝟑 ~ 𝟏ൗ𝟑 2024 2030E 2024 2030E…
Slide 11: Extreme weather events rapidly increasing due to climate change
Scenario Extreme weather events rapidly increasing due to climate change 2024 Extreme Events Significant increase in extreme weather events DROUGHT ▲ +55% vs 2023 6X RIVER FLOODING ▲ +31% vs 2023 2015 2024 HEAVY RAIN ▲ +14% 350 extreme weather events registered in Italy only vs 2023 Source: Legambie
Slide 12: Terna enables the transition and energy independence
Scenario Terna enables the transition and energy independence RES INTEGRATION RESILIENCE Terna TSO Role ENERGY INDEPENDENCE SECURITY & QUALITY OF SERVICE 11
Slide 13: 10-year National Development Plan
10-year National Development Plan 12
Slide 14: 10-year National Development Plan Overview
10-year National Development Plan Overview GRID INVESTMENTS PLANNED ACTIONS €bn RES & non-RES connections +10% Interzonal interventions (Hypergrid, Tyrrhenian Link, Adriatic Link) ~21 Over 23 Foreign interconnections (Italy-Tunisia, GR.ITA.2) Intrazonal interventions (380 kV Chiaramonte-Gulfi-Ciminn
Slide 15: Main interzonal initiatives and interconnections with foreign countries
10-year National Development Plan Main interzonal initiatives and interconnections with foreign countries 2030 2034 2040 * 1 Interconnection Marine HVDC Modernization AC/DC Modernization AC 380 kV Developing the infrastructure of the future 1. Possibility of bringing forward the complete project wit
Slide 16: Strategy
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Slide 17: Further increase in the five-year capex plan
Strategy Further increase in the five-year capex plan TOTAL 2024-2028 CAPEX Update €bn Capex Growth +7% Drivers 17.7 16.5 1.0 • Security Plan +65% 1.0 1 • Cyber security • Grid stability assets 15.5 16.6 10.0 • Electricity Asset 2 Renewal Plan 2021 - 2025 Plan 2024 - 2028 Plan 2024 - 2028 Update Tot
Slide 18: Planned investments continue at a faster pace in permitting, procurement, and execution
Strategy Planned investments continue at a faster pace in permitting, procurement, and execution Project execution acceleration Terna’s main development projects in the 2024-2028 Plan 2024-2028 CAPEX Authorization Update Milano Of the projects included in the 2024-28 plan update, ~15 €bn approximate
Slide 19: Non-Regulated Activities integrated into Terna's business model
Strategy Non-Regulated Activities integrated into Terna’s business model Non-Regulated Activities Strategic rationale for Asset Portfolio Equipment Capital light activities Energy Services Business Support regulated projects Portfolio Interconnector Contribute to energy transition Connectivity Maxim
Slide 20: Digital Transformation scale-up
Strategy Digital Transformation scale-up Digital Value Digital Capex €bn >20% Process Digital Data-driven New Digitalization Twin company Technologies 2.4 ~ 2.0 Plan 2024 - 2028 Plan 2024 - 2028 Update Resilience and Cyber Digital Transformation embraces all the Transmission Network Engineering Syst
Slide 21: ESG commitments and ambitions
Strategy ESG commitments and ambitions Green By Nature Commitment to Science-based Target for Nature Adaptation to climate change Net Zero by 2050 certification by 2026 through the increase of grid’s resilience Social by Purpose Safety indicator1 ≤ 1 100% significant projects2 Establishment of Terna
Slide 22: FY 2024 Results
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Slide 23: FY 2024 Key Numbers
FY 2024 Results FY 2024 Key Numbers FY 2024 FY 2023 ∆ vs FY 2023 Actual Guidance Actual €mn €bn €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 e
Slide 24: Revenues
FY 2024 Results Revenues REGULATED NON-REGULATED & INTERNATIONAL €mn €mn +426 +16.0% 3,096 +67 2,670 385 9 32 113 +13.0% 81 60 51 67 584 517 2,924 2,539 Transmission & Dispatching Other IFRIC12 FY23 ∆ ∆ ∆ FY24 FY23 ∆ FY24 Transmission & Other IFRIC12 Non Regulated Dispatching and International Activ
Slide 25: EBITDA
FY 2024 Results EBITDA GROUP REGULATED €mn €mn 376 +398 +18.3% 2,086 2,462 FY23 ∆ FY24 NON-REGULATED & INTERNATIONAL €mn 2,566 2,169 22 83 105 FY23 FY24 FY23 ∆ FY24 Regulated Activities as EBITDA growth driver Notes: figures may not add up due to rounding 24
Slide 26: From EBITDA to Net Income
FY 2024 Results From EBITDA to Net Income €mn 889 2,566 172 455 1,677 -12 1 1,062 885 EBITDA D&A EBIT Net Taxes (Profit)/Loss Minority Group Group 1 1 Financial from Interest Net Income Net Income Expenses discontinued FY23 operation 20% increase in Net Income Note: figures may not add up due to rou
Slide 27: Capex
FY 2024 Results Capex TOTAL CAPEX REGULATED CAPEX €mn €mn 2,692 2,290 123 106 29% Development Defence 2,569 60% 2,184 11% Asset Renewal & Efficiency FY23 FY24 1 Regulated Non Regulated and Other Strong Capex delivery to serve system needs Note: figures may not add up due to rounding 1. Of which abou
Slide 28: Cash Flow & Net Debt Evolution
FY 2024 Results Cash Flow & Net Debt Evolution €mn +666 10,494 -203 11,160 -1,896 2,692 73 1 Dec.31, Operating Δ WC & Other Capex Dividends,Equity Dec.31, 2023 Cash Flow & 2 2024 Others Net debt evolution under control Note: figures may not add up due to rounding 1. Including Other Fixed Assets Chan
Slide 29: 2024 – 2028 Group Financial Targets
2024 – 2028 Group Financial Targets 28
Slide 30: Domestic Regulated Activities: Capex and RAB evolution
2024 – 2028 Group Financial Targets Domestic Regulated Activities DOMESTIC REGULATED CAPEX RAB EVOLUTION5 €bn €bn +7% CAGR2023-2028 9% 30.6 31.8 16.63 +60% 15.52 24.8 22.5 * 9.61 4 20242024 20252025 2028 Plan 2021-2025 Plan 2024-2028 Updated Plan 2024-2028 2024-2028 Industrial Plan 2024-2028 Industr
Slide 31: Domestic Regulated Activities: cumulated capex
2024 – 2028 Group Financial Targets Domestic Regulated Activities CATEGORY CUMULATED CAPEX MAIN PROJECTS Tyrrhenian Link SA.CO.I. 3 Development 10.8 €bn Adriatic Link Solving grid congestions Central Link RES integration Quality of Service Asset Renewal and Efficiency 3.6 €bn Quality of Processes Qu
Slide 32: Regulatory milestones
2024 – 2028 Group Financial Targets Regulatory milestones 2024 2025 2026 2027 2028 Renewal of the output- based regulation related WACC updated for the Introduction of ROSS Start of new WACC the increase of inter-zonal period 2025-2027 Integrale regulation period transmission capacity for the period
Slide 33: Non-Regulated Activities: Areas of expansion
2024 – 2028 Group Financial Targets Non-Regulated Activities Areas of expansion Energy Services Equipment Connectivity Sector Sector Sector Leveraging on the energy Significant surge in demand Asset value maximization transition Photovoltaic EPC Optical Fiber Brugg Cables Interconnectors Backhauling
Slide 34: Guidance 2025 and 2028
2024 – 2028 Group Financial Targets Guidance 2025 and 2028 FY 2024 FY 2025 FY 2028 Actual Guidance Guidance €bn €bn €bn Plan 2024-2028 Plan 2024-2028 Update Revenues 3.68 4.03 4.60 5.19 EBITDA 2.57 2.70 3.25 3.36 Net Income 1.06 1.08 1.10 1.19 Capex1 2.7 3.4 16.5 17.7 Cumulated 2024-2028 CAGR 23-28:
Slide 35: Yield & Growth
2024 – 2028 Group Financial Targets Yield & Growth NET INCOME DIVIDEND POLICY Minimum dividend - the higher of: €bn 2024 DPS (39.62 cents) 2023 DPS (33.96 cents) +4% annual growth €cent +17% 39.62 Minimum DPS 33.96 1.19 1.06 0.89 2023 2024 2025 2026 2027 2028 2023 2024 2028 Providing long-term visib
Slide 36: Financial Efficiency and Financial Structure
2024 – 2028 Group Financial Targets Financial Efficiency and Financial Structure ▪ Gross Debt @ ~84% Fix rate1,2 ▪ Strong commitment to maintain current rating level ▪ Average duration of ~6 years2 ▪ Average Cost of Net Debt 2024-2028 @ 3.1% CREDIT RATING ESG RATING Terna Sovereign Moody’s ESG Advan
Slide 37: Closing Remarks
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Slide 38: Closing Remarks
Closing Remarks Strengthening Terna’s role in decarbonization and energy independence process, 1 contributing to higher stability of electricity bills 2 Focus on execution of our investment plan 3 Accelerating returns while maintaining financial stability 4 Ensuring a balanced mix of yield and growt
Slide 39: Annexes
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Slide 40: 2025 Total Grid Fee update
Annexes 2025 Total Grid Fee update1 2024 2025 Transmission Transmission 2.41€bn 2.70€bn Resolution 632/2023 Resolution 579/2024 36% 42% + + Dispatching Dispatching 0.15€bn 0.17€bn Resolution 625/2023 Resolution 586/2024 22% = = RAB remuneration Allowed Opex 2.56€bn 2.87€bn Allowed D&A Notes: 1) ARER
Slide 41: Consolidated Income Statement
Annexes 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
Slide 42: Consolidated Balance Sheet
Annexes 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 fo
Slide 43: Consolidated Cash Flow
Annexes Consolidated Cash Flow € mn FY24 FY23 Total Net Income 1,063 883 D&A 1 876 788 Net Change in Funds -43 -35 Operating Cash Flow 1,896 1,636 Δ Working Capital & Other 2 -73 -536 Cash Flow from Operating Activities 1,823 1,100 Capital Expenditures -2,692 -2,290 Free Cash Flow to Equity -870 -1,
Slide 44: Disclaimer
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 INFORMATI
Slide 45: Notes
Notes WN WWW wa lerna 7M Driving Energy
Slide 46: Notes
Notes WN WWW wa lerna 7M Driving Energy
Slide 47: Notes
Notes WN WWW wa lerna 7M Driving Energy
Slide 48: | Z&Terna
| Z&Terna BVaN Driving Energy