Edison S p A : 2025 Financial Report - Volume 2 - Consolidated Financial Statements with the Opinion of the Independent Auditor

2025

Financial Report

CONSOLIDATED FINANCIAL STATEMENTS VOLUME 2

This document has been translated into English for the convenience of readers outside Italy.

The original Italian document published under the Transparency directive should be considered the authoritative version.

Edison Spa

31 Foro Buonaparte

20121 Milan, Italy

Capital stock 4,736,117,250.00 euros, fully paid

in Milan - Monza - Brianza - Lodi Company Register and Tax I.D. No. 06722600019

VAT No. 08263330014 REA Milan No. 1698754

[email protected]

Contents

CONSOLIDATED FINANCIAL STATEMENTS

(Primary statements and Reclassified balance sheet) 3

Consolidated income statement and Other components of the comprehensive income statement 3

Consolidated balance sheet 4

Cash flow statement 5

Changes in consolidated shareholders' equity 6

Reclassified consolidated balance sheet 7

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8

1. Introduction 8

   1. Newly applied standards 8

   2. Presentation formats adopted by the Group 8

   3. Main changes in the scope of consolidation compared with December 31, 2024 9

   4. Application of accounting standard IFRS 5 11

2. Performance 13

   1. Highlights 13

   2. Segment information 14

   3. EBITDA 16

   4. From EBITDA to Profit (Loss) from continuing operations 20

   5. Profit (Loss) from discontinued operations and Group interest in profit (loss) 21

3. Net working capital 22

   1. Credit risk management 22

   2. Operating working capital 22

   3. Other assets and liabilities 24

4. Market risk management 25

   1. Market risks and risk management 25

   2. Hedge Accounting and Economic Hedge - Fair Value hierarchy 27

   3. Effects of derivatives transactions on income statement and balance sheet at December 31, 2025 28

5. Fixed assets, Financial assets and Provisions 32

   1. Tangible, intangible assets and goodwill 32

   2. Equity investments and Other financial assets 37

   3. Provisions for risks and employee benefits 39

   4. Contingent assets and liabilities 40

6. Shareholders' equity, Financial debt and cost of debt 42

   1. Shareholders' equity 42

   2. Management of financial resources 43

   3. Total financial indebtedness and cost of debt 44

   4. Financial risk management 49

7. Taxation 52

   1. Tax risk and tax management 52

   2. Taxes 52

   3. Tax assets and liabilities 53

8. Non-Energy Activities 56

9. Other notes 62

   1. Information on business combinations 62

   2. Information pursuant to IFRS 5 65

   3. Other commitments 70

   4. Intercompany and Related-party transactions 71

10. Criteria and methods 75

    1. Criteria and methods of consolidation 75

    2. Valuation criteria 76

11. Other information 85

    1. Significant non-recurring events and transactions 85

    2. Transactions resulting from atypical and/or unusual activities 85

    3. Information pursuant to Article 1, Sections 125-129, Law No. 124 of 2017 85

Significant events occurring after December 31, 2025 86

Scope of consolidation 87

Certification pursuant to Article 81-ter of CONSOB Regulation No. 11971 94

Report of the Independent Auditors 95

Consolidated income statement Other components of the comprehensive income statement

(*) Items not reclassificable in Income Statement.

Consolidated balance sheet Cash flow statement

The table below analyzes the cash flow as it applies to short-term liquid assets (i.e. due within 3 months) in 2025 and 2024. In order to provide a better understanding of the Group's cash flows and their dynamics please see paragraph 6.3 Total financial indebtedness and cost of debt. The information provided below is supplemented by the data presented in a specific statement included in the Management, Sustainability and Governance Report.

(*) For the reconciliation with the amounts of balance sheet please refer to paragraph 6.3 Total financial indebtedness and cost of debt.

Changes in consolidated shareholders' equity

(*) The amount relating to Shareholders' equity attributable to Parent Company shareholders refers to the payment of a portion of 2023 profit and an additional amount to be taken from the "retained earnings", as per resolution of Edison Spa Shareholders'

Meeting held on March 27, 2024; the amount relating to Shareholder's equity attributable to minority shareholders refers to minority shareholders' dividends distributed by the subsidiary Edison Rinnovabili in March 2024.

(**) The amount relating to Shareholders' equity attributable to Parent Company shareholders refers to the payment of a portion of 2024 profit, as per resolution of Edison Spa Shareholders' Meeting held on April 3, 2025; the amount relating to Shareholder's

equity attributable to minority shareholders refers to minority shareholders' dividends distributed by the subsidiary Edison Rinnovabili in March 2025.

Reclassified consolidated balance sheet

This schedule, prepared on a voluntary basis, reclassifies the balance sheet items in order to allow a quicker reconciliation with the information provided in the following chapters.

(*) The item does not include Other non-current liabilities for 92 million euros (220 million euros at December 31, 2024) w hich are part of Total financial indebtedness. (**) The item incorporates the ESMA Guidelines on financial debt and therefore includes Other non-current liabilities.

(***) See paragraph 2.2 Segment Information for more details on the operating segments identified in accordance w ith IFRS 8.

1. Introduction

   The Consolidated financial statements of the Edison Group at December 31, 2025 comply with the requirements of the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB), as published in the Official Journal of the European Union (O.J.E.U.).

   The Board of Directors, meeting on February 17, 2026, authorized the publication of these Consolidated financial statements, which were audited by KPMG Spa in accordance with an assignment awarded by the Shareholders' Meeting of April 28, 2020 for a period of nine years (2020-2028), pursuant to Legislative Decree No. 39 of January 27, 2010.

   Unless otherwise stated, all amounts in these accompanying notes are in millions of euros.

   1. Newly applied standards

      The accounting principles, the valuation criteria and the consolidation criteria applied in the preparation of these Consolidated financial statements are consistent with those adopted for the 2024 Consolidated financial statements.

      It should be noted the following amendment to IAS/IFRS adopted during the year, without effects:

      • IAS 21 "The effects of changes in foreign exchange rates": the amendments clarify the requirements for establishing a currency's convertibility and for estimating the spot exchange rate when a currency is deemed non-convertible. Furthermore, the amendments require entities to provide information that allows users of the financial statements to understand the impact of the non-convertibility of a currency.

      It should also be noted that from January 1, 2027 the new IFRS 18 will come into force, which will replace IAS 1 and introduce significant changes in the presentation of the financial statements in order to provide users with more relevant and transparent information. IFRS 18 introduces new requirements for presentation of the income statement, including specific totals and subtotals. In addition, entities will be required to classify all income statement items into one of five categories: operating, investing, financing, income taxes and discontinued operations.

      The standard requires the disclosure of new performance measures defined by management and subtotals, also introducing new requirements regarding the aggregation and disaggregation of information. Edison has launched an internal project, the gap analysis of which has been completed, in order to assess whether the adoption of the new accounting standard will have a significant impact on the financial statements.

      For more information on the standards, criteria and methods adopted by the Group, refer to the comments in chapter 10. Criteria and methods.

   2. Presentation formats adopted by the Group

      Based on the numerous IASB's projects on the topic "Effective communication" Edison has been adopting for some time a presentation method that makes the financial statements information more relevant and effective, considering information materiality and stakeholders' expectations. For this purpose, in continuity with previous years, the notes to the financial statements have been broken down into chapters of similar topics, instead of detailing them for single items of the financial statements.

      With reference to the effects related to application of accounting standard IFRS 5 please see the following paragraph 1.4 and chapter 9. Other notes - paragraph 9.2 Information pursuant to IFRS 5.

      The mandatory presentation formats utilized have the following characteristics:

      • the Consolidated income statement is a step-by-step income statement, with the different components broken down by nature. It includes a schedule of Other components of the comprehensive income statement, which shows the components of net profit or loss provisionally recognized in equity;

      • in the Consolidated balance sheet, assets and liabilities are analyzed by maturity. Current and non-current items, which are due within or after 12 months from the end of the reporting period, respectively, are shown separately;

      • the Cash flow statement is prepared reporting the cash flows in accordance with the "indirect method", as

        permitted by IAS 7;

      • the Statement of Changes in consolidated shareholders' equity shows separately the flows from component of the reserve for other components of comprehensive income.

      As an integration of the previous formats, a Reclassified consolidated balance sheet was prepared on a voluntary basis in order to allow a quicker reconciliation with the information provided in the following chapters.

   3. Main changes in the scope of consolidation compared with December 31, 2024

      The main changes in the year involved:

      • on March 3, 2025, following to the agreement signed on July 25, 2024, Edison finalized the sale to Snam Group of 100% of Edison Stoccaggio, a company operating in the gas storage activities. The consideration collected at the closing amounted to 565 million euros and the net capital gain from the sale was approximately 19 million euros. A potential earn-out is also envisaged, currently considered a "contingent asset";

      • on July 15, 2025, Edison finalized the sale to Helleniq Energy Holdings SA of 50% of Elpedison BV. The consideration collected amounted approximately to 194 million euros, subject to adjustment, and a capital gain estimated at approximately 15 million euros was recognized.

      For further information on the two sale transactions described above please refer to the following paragraph 1.4 and chapter

      9. Other notes - paragraph 9.2 Information pursuant to IFRS 5.

      It should also be noted:

      • the acquisition, on January 24, 2025, of a further stake, equal to 40%, of the company Ecotermica Ciriè by Edison Next, increasing its participation in the company's share capital to 100%, for a consideration of about 3 million euros;

      • the acquisition, executed on January 28, 2025, by Edison Rinnovabili, of 100% of the company Wind Energy Sant'Agata, dedicated to development projects in the wind sector and valued as Group of assets acquisition pursuant to IFRS 3 revised, for a consideration of about 7 million euros;

      • the acquisition, on May 29, 2025, by Energia Italia, of a further stake, equal to 30%, of the company Idroelettrica Restituzione, which is now therefore held with 80% equity stake; following this transaction and the amendment to the shareholders' agreements, the company, which was previously included among investments in companies valued by the equity method, is fully consolidated starting from June;

      • the acquisition, executed on June 26, 2025, by Edison Rinnovabili, of 100% of the company New Solar Green, dedicated to development projects in the photovoltaic sector and valued as Group of assets acquisition pursuant to IFRS 3 revised, for a consideration of about 4 million euros;

      • the acquisition, executed on July 16, 2025, by Edison Next Teleriscaldamento, of 100% of the company Essitech, operating in the district-heating sector, for a consideration lower than 1 million euros;

      • the acquisition, executed on September 24, 2025, by Edison Next Teleriscaldamento, of 100% of the company

        Adriawatt, for a consideration of about 1 million euros;

      • the acquisition, executed on October 6, 2025, by Edison Rinnovabili, of 100% of the company REN 176, dedicated to development projects in the photovoltaic sector and valued as Group of assets acquisition pursuant to IFRS 3 revised, for a consideration of about 7 million euros;

      • the acquisition, executed on December 11, 2025, by Edison Rinnovabili, of 100% of the company Artale Energia, dedicated to development projects in the photovoltaic sector and valued as Group of assets acquisition pursuant to IFRS 3 revised, for a consideration of about 2 million euros;

      • the acquisition, executed on December 11, 2025, by Edison Next Teleriscaldamento, of 100% of the company

        Energia Verde Italia, operating in the district-heating sector, for a consideration of about 1 million euros;

      • the acquisition, executed on December 12, 2025, by Edison Rinnovabili, of 100% of the companies Rama, Solare Foiano and SLGP1, dedicated to development projects in the photovoltaic sector and valued as Group of assets acquisition pursuant to IFRS 3 revised, for a total consideration of about 4 million euros;

      • the sale, on December 15, 2025, by Edison Next to Dalkia, of 100% of the company Edison Next Poland, which in its turn holds the entire capital of Edison Next Services Poland, companies operating in the energy services sector, with the collection of an amount of about 26 million euros.

      With reference to corporate rationalization and simplification operations without impact on the Group's values, it should be noted that during the year the company Edison Green Gas, 100% owned by Edison Spa and dedicated to green gas development projects, was established. All assets, including shareholdings, resources, expertise, contracts and personnel, relating to the biomethane development activities carried out by Edison Next Environment were transferred to this company through two demergers. In particular, following the above-mentioned demerger operations, the equity investments in Eli Fraschetta Energia, Ambyenta Lazio, Biometano Veneto and Biotech, previously held by Edison Next Environment, are now held by Edison Green Gas. It should be specified that these transactions had no impact on the amounts reported in the segment information, as the green gases development activities were already included as of December 31, 2024, in the Gas Supply & Development of Green Gases business area.

      It should also be noted the mergers of the companies REN 143, REN 144 and REN 201 in Edison Rinnovabili, of the company Sistemi di Energia in Edison Spa and of the company Ecotermica Ciriè in Edison Next Teleriscaldamento.

      The following table provides a summary of the balance sheet impacts deriving from the valuation, as of the acquisition date, of the business combination transactions carried out during the year, excluding those valued as Group of assets acquisition pursuant to IFRS 3 revised. It should be noted that for the company Energia Verde Italia, as it was acquired in December, a provisional goodwill of 1 million euros was recognized since, in accordance with IFRS 3 revised, the valuation becomes final within 12 months of the acquisition.

      Acquired assets and liabilities (in millions of euros)	Idroelettrica Restituzione	Essitech, Adriawatt and Energia Verde Italia	Total business combinations
      Total non-current assets	12	4	16
      Total current assets	3	-	3
      Total assets (A)	15	4	19
      Total non-current liabilities	4	1	5
      Total current liabilities	1	1	2
      Total liabilities (B)	5	2	7
      Net acquired assets (A-B)	10	2	12
      % attributable to Edison Net assets attributable to Edison (C)	80% 8	100% 2	10
      Goodwill (D+E-C)	-	1	1
      Price of acquisition (D)	3	3	6
      Fair Value of previously held interests (E) (*)	5	-	5
      Cash and cash equivalents acquired (F)	(2)	-	(2)
      Financial debt reimbursed (G)	1	1	2
      Net price paid on business combination (D+F+G)	2	4	6

      (*) With reference to Idroelettrica Restituzione, it refers to the fair value, at the date of acquisition of control, of the previously held 50% equity stake of the company, that was recorded under the item "Investments in companies valued by the equity method".

      It should also be noted that during the year the Purchase Price Allocation (PPA) processes related to the acquisition of the companies Eli Fraschetta Energia and Instalaciones Ecoclima were completed.

      For more information, please refer to the comments contained in chapter 9. Other notes - paragraph 9.1 Information on business combinations.

   4. Application of accounting standard IFRS 5

      Sale of Edison Stoccaggio - Discontinued operations

      On March 3, 2025, following to the agreement signed on July 25, 2024, Edison finalized the sale to Snam Group of 100% of Edison Stoccaggio, a company operating in the gas storage sector. The consideration collected at the closing amounted to 565 million euros and the agreement envisages also a potential earn-out, considered as "contingent asset", that Snam will pay to Edison in case of a positive outcome of an ongoing administrative dispute.

      It should be noted that, since 2023 Consolidated financial statements, the gas storage activities, pertaining to the company Edison Stoccaggio, have been treated as Assets held for sale (discontinued operations) in accordance with IFRS 5; therefore in these Consolidated financial statements:

      • in the income statement the revenues and income and costs and expenses of the activities that constitute discontinued operations until the date of the sale have been reclassified under the item Profit (Loss) from discontinued operations (net income for 7 million euros in 2025 and for 31 million euros in 2024); the result of 2025 includes also the net capital gain related to the sale for an amount of about 19 million euros, which does not take into account the possible earn-out;

      • in the balance sheet at December 31, 2025 assets and liabilities related to the business sold are deconsolidated, while at December 31, 2024 were reclassified under Assets and Liabilities held for sale; it should be noted that the carrying value of the business included the allocation, pursuant to IAS 36 paragraph 86, in the amount of 115 million euros, of a portion of the indistinct goodwill of the Gas Operations, where the Edison Stoccaggio CGU was consolidated at the date of the first classification as discontinued operations;

      • in the cash flow statement, the cash flows generated by the activities that constitute the discontinued operations until the date of the sale have been reclassified to specific dedicated items.

      For more information please refer to paragraph 9.2 Information pursuant to IFRS 5.

      Sale of the 50% stake held in Elpedison BV to Helleniq Energy Holdings SA - Disposal group

      On July 15, 2025, following to the agreement signed on April 11, 2025, Edison finalized the sale of the 50% stake in Elpedison BV to Helleniq Energy Holdings SA, which already held the remaining 50% interest in the company together with its subsidiary Helleniq Energy International GMBH. Elpedison BV in turn owns the entire share capital of the Greek company Elpedison SA.

      The completion of the transaction resulted in the collection of a consideration of approximately 194 million euros, subject to adjustment.

      It should be noted that, since 2024 Consolidated financial statements, the investment in 50% of the capital of Elpedison BV, which had previously been recognized in the balance sheet under "Investments in companies valued by the equity method", has been treated as a disposal group in accordance with IFRS 5; therefore in these Consolidated financial statements:

      • in the balance sheet at December 31, 2025, the equity investment is deconsolidated, while at December 31, 2024 it was shown under Assets held for sale for an amount of 158 million euros;

      • in the income statement and in the flows the representation of the contribution to Group values is included in

        continuing operations and, in particular, under the items dedicated to the investments in companies valued by the equity method; it should be noted that the item "Income from (Expense on) equity investments" also includes the estimated gain on disposal for about 15 million euros.

        Sale of the activities located in Sesto San Giovanni to A2A - Disposal group

        On November 29, 2024, an agreement was signed for the sale to A2A of the assets and liabilities related to Sesto San Giovanni; the agreement was subsequently finalized in April 2025.

        It should be noted that, since 2024 Consolidated financial statements, these assets and liabilities have been treated as disposal group pursuant to IFRS 5; therefore in these Consolidated financial statements:

      • in the balance sheet at December 31, 2025, the assets and liabilities subject to sale are deconsolidated, while at December 31, 2024 they were shown under Assets and Liabilities held for sale;

      • in the income statement and in the flows the representation of the contribution to Group values, until the sale, is included in continuing operations.

      The sale resulted in the collection of a consideration of about 27 million euros and the recognition of a gain of 27 million euros included in EBITDA.

      Other amounts recognized under Assets and Liabilities held for sale

      It should be noted that some amounts, pertaining to the E&P business, linked to the sale transaction concluded in 2020 with Energean, are still recognized under Liabilities held for sale at December 31, 2025.

      For more information regarding the application of IFRS 5 accounting standard and the related effects on these Consolidated financial statements, see paragraph 9.2 Information pursuant to IFRS 5.

2. Performance
   1. Highlights

      M€

      M€

      EBITDA EBIT

      M€

      PROFIT (LOSS) FROM CONTINUING OPERATIONS

      2025

      2024

      2025

      2024

      243

      2025

      2024

      NET INVESTMENTS (*)

      TOTAL FINANCIAL

      INDEBTEDNESS (LIQUIDITY)

      2025

      2024

      DEC 31, '25 DEC 31, '24

      (219)

Edison Next - Public lighting and smart services for the city of Trieste

(*) Effect on indebtedness as described in the paragraph 6.3 Total financial indebtedness and cost of debt.

(*) Excluding gas storage activities, exposed as discontinued operations, sold during the first half of the year; (**) Relating to increases of property, plant and equipment and of intangible assets

1. 1. Segment information

      It should be remembered that, in 2024 the segment information pursuant to IFRS 8 was reviewed with the aim of better aligning the "business segment" to the Group's strategy. Such strategy was presented to the market at the end of 2023, on the occasion of the 140th anniversary of the Edison foundation. The segmentation identified allows to reflect the following strategic priorities of the Group: (i) expand the renewable generation portfolio and the capability to provide flexibility; (ii) adapt gas supply to Italian demand while developing green gases; (iii) support customers on their decarbonization journey. The new business areas, identified starting from 2024 Consolidated financial statements and described below, ensure also an information structure consistent with the current management reporting.

      Generation & Flexibility: the Group operates a portfolio of generation plants from thermoelectric, hydroelectric, wind and photovoltaic sources and carries out plant management and development activities, as well as the optimization of the energy portfolio;

      Gas Supply & Development of Green Gases: this includes midstream gas activities, such as the development of gas transportation infrastructure, the management of procurement contracts and sales to wholesale customers; the Group is also committed to the development of green gases; during the year, with the completion of the sale of Edison Stoccaggio, already classified as discontinued operations, the Group abandoned the gas storage business;

      Clients & Services: this includes the activities of: (i) Edison Energia and its subsidiaries (hereinafter referred to as Edison Energia) as selling gas, electric power and value-added services (VAS) to end customers (business and residential); (ii) Edison Next and its subsidiaries, excluding the green gases development activities, (hereinafter referred to as Edison Next), with a portfolio of energy and environmental services activities aimed at both companies and Public Administration; Corporate & Environmental Remediation: includes the centralized and transversal activities of the Parent Company, the activities of certain holding companies and companies active in the real estate and environmental sectors, amongst other Edison Regea, a company dedicated to environmental remediation activities. For more information on environmental remediation activities, see chapter 8. Non-Energy Activities.

      (in millions of euros)	Generation & Flexibility	Gas Supply & Development of Green Gases	Clients & Services	Corporate & Environmental Remediation	Adjustments	Edison Group
      Income statement 2025
      Sales revenues	5,786	10,710	8,171	195	(7,123)	17,739
      - Third parties	3,571	6,028	8,135	5	-	17,739
      - Intra-Group	2,215	4,682	36	190	(7,123)	-
      Commodity and logistic costs	(4,737)	(10,326)	(7,040)	-	6,926	(15,177)
      Other costs and services used	(352)	(91)	(571)	(128)	201	(941)
      Labor costs	(77)	(23)	(265)	(96)	-	(461)
      Other revenues and income (costs) and receivables (writedowns)/reversals	67	40	32	10	(4)	145
      EBITDA	687	310	327	(19)	-	1,305
      Net change in fair value of derivatives (commodity and exchange rate risk)	(2)	72	(1)	-	(6)	63
      Depreciation and amortization	(246)	(30)	(207)	(35)	-	(518)
      (Writedowns) and reversals	-	(27)	(6)	-	-	(33)
      Other income (expense) non-Energy Activities	-	-	-	(394)	-	(394)
      EBIT	439	325	113	(448)	(6)	423
      Balance sheet at 12.31.2025
      Current and non-current assets	5,237	2,552	3,344	5,205	(3,573)	12,765
      Assets held for sale	-	-	-	-	-	-
      Total assets	5,237	2,552	3,344	5,205	(3,573)	12,765
      Current and non-current liabilities	1,578	1,829	2,313	2,307	(2,110)	5,917
      Liabilities held for sale	-	-	-	27	-	27
      Total liabilities	1,578	1,829	2,313	2,334	(2,110)	5,944
      Total shareholders' equity						6,821
      Total financial indebtedness (liquidity)						(219)
      Other information and ratios
      Number of employees	851	239	3,780	957	-	5,827
      Employees in activities held for sale	-	-	-	-	-	-
      EBITDA/Sales revenues	11.9%	2.9%	4.0%	n.m.	n.m.	7.4%
      EBIT/Sales revenues	7.6%	3.0%	1.4%	n.m.	n.m.	2.4%
      TFI/EBITDA						n.m.
      Income statement 2024
      Sales revenues	4,734	9,362	7,263	187	(6,159)	15,387
      - Third parties	2,963	5,209	7,212	3	-	15,387
      - Intra-Group	1,771	4,153	51	184	(6,159)	-
      Commodity and logistic costs	(3,522)	(8,703)	(6,081)	-	5,968	(12,338)
      Other costs and services used	(402)	(91)	(552)	(126)	196	(975)
      Labor costs	(76)	(21)	(266)	(90)	-	(453)
      Other revenues and income (costs) and receivables (writedowns)/reversals	55	13	21	3	(5)	87
      EBITDA	789	560	385	(26)	-	1,708
      Net change in fair value of derivatives (commodity and exchange rate risk)	19	(20)	-	-	(3)	(4)
      Depreciation and amortization	(251)	(26)	(188)	(33)	-	(498)
      (Writedowns) and reversals	(2)	(22)	-	-	-	(24)
      Other income (expense) non-Energy Activities	-	-	-	(628)	-	(628)
      EBIT	555	492	197	(687)	(3)	554
      Balance sheet at 12.31.2024
      Current and non-current assets	5,095	2,807	3,535	4,602	(3,566)	12,473
      Assets held for sale	10	624	-	263	(110)	787
      Total assets	5,105	3,431	3,535	4,865	(3,676)	13,260
      Current and non-current liabilities	1,444	2,241	2,501	2,051	(1,986)	6,251
      Liabilities held for sale	11	205	-	40	(110)	146
      Total liabilities	1,455	2,446	2,501	2,091	(2,096)	6,397
      Total shareholders' equity						6,863
      Total financial indebtedness (liquidity)						313
      Other information and ratios
      Number of employees	826	207	4,177	924	-	6,134
      Employees in activities held for sale (*)	18	57	-	-	-	75
      EBITDA/Sales revenues	16.7%	6.0%	5.3%	n.m.	n.m.	11.1%
      EBIT/Sales revenues	11.7%	5.3%	2.7%	n.m.	n.m.	3.6%
      TFI/EBITDA						0.2

      (*) They included employees of Edison Stoccaggio and of activities located in Sesto San Giovanni.

      The Group does not view geographic area segment information as meaningful, since it is essentially concentrated in Italy.

      Major customers as defined by IFRS 8

      Sales revenues of the Group are usually not concentrated; there is only one major customer (related party) with total sales revenues amounting to about 3,334 million euros in the year, with an incidence of about 19% of Group's sales revenues, referred to Generation & Flexibility (incidence of about 41% of sales revenues of the business area) and to Gas Supply & Development of Green Gases (incidence of about 9% of sales revenues of the business area). Please see also paragraph

      9.4 Intercompany and Related-party transactions.

   2. EBITDA

      EBITDA (in millions of euros)	2025	2024	Change	Change %
      Generation & Flexibility	687	789	(102)	(12.9%)
      Gas Supply & Development of Green Gases	310	560	(250)	(44.6%)
      Clients & Services	327	385	(58)	(15.1%)
      Corporate & Environmental Remediation	(19)	(26)	7	26.9%
      Total for the Group	1,305	1,708	(403)	(23.6%)

      
      
      

      In 2025 Group EBITDA was positive for 1,305 million euros, in decrease compared to 2024 (1,708 million euros).

      Generation & Flexibility in particular shows an increase in the EBITDA of the thermoelectric sector compared to 2024, thanks both to a more favourable market scenario, which led to higher production volumes, and to some non-recurring positive effects, including some income related to the sale of the activities located in Sesto San Giovanni. The renewables sector, instead, achieved a significantly lower EBITDA, mainly due to a reduction in hydroelectric production, which in 2024 had benefited from an extraordinary hydraulicity, and wind production too, due to poor windiness; this effect was partially offset by lower fees on hydroelectric concessions.

      The EBITDA of Gas Supply & Development of Green Gases, amounting to 310 million euros, was in sharp decrease compared to 2024 (560 million euros) due to a less favourable market scenario compared to the two last extraordinary years and to lower opportunities of asset portfolio optimization. As previously noted, gas storage activities, sold during the first half of the year, are not included in the values commented above, as they are classified as discontinued operations pursuant to IFRS 5.

      Clients & Services recorded an EBITDA of Edison Energia of 193 million euros, in decrease compared to 2024 (263 million euros) attributable to a lower marginality of the sales of the B2B sector and to the impact of customers of Gradual Protection Service (GPS) (starting from July 2024). In the Clients & Services business area it should also be noted the contribution of the activities of Edison Next for 134 million euros (122 million euros in 2024), in increase mainly due to the development of the activities linked to Public Administration and the higher contribution from Industry activities.

      The EBITDA of Corporate & Environmental Remediation recorded an increase compared to the last year, mainly due to a non-recurring positive effect.

      The main components of EBITDA are analyzed below.

      Sales revenues

      (in millions of euros) Electric power Natural gas

      Realized commodity derivatives

      2025 2024 Change Change %

      6,003

      7,724

      1,573

      4,994

      6,496

      1,687

      1,009

      1,228

      (114)

      20.2%

      18.9%

      (6.8%)

      17,739

      5,786

      10,710

      15,387

      4,734 9,362

      8,171 7,263

      l Remediation

      f Green Gases

      
      
      

      1. Sales revenues

         Steam	65	81	(16)	(19.8%)	195		187
         Transmission revenues	1,233	1,099	134	12.2%	(7,123)		(6,159)
         Revenues from services provided	879	736	143	19.4%	2025		2024
         Other revenues Total	262 17,739	294 (32) (10.9%) Eliminations Clients & Services 15,387 2,352 15.3% Generation & Flexibility				Corpora Gas Sup	te and Environmenta ply & Development o

         >

         
         
         
         
         

         Sales revenues of electric power recorded an increase compared to 2024 due both to the recovery of the price scenario, and to the increase in the volumes sold. Please note that sales revenues of electric power of Generation & Flexibility also include sales to Clients & Services to meet sales requirements to end customers.

         
         
         

         The Group's sales revenues of natural gas showed an increase too, due to the rise in energy commodity prices and the increase in the sales' volume. Sales revenues of natural gas of Gas Supply & Development of Green Gases also include sales to Generation & Flexibility, to meet thermoelectric needs, and to Clients & Services.

         
         
         

         The realized results on commodity derivatives, that should be analyzed together with the corresponding item included in Commodity and logistic costs, concern the commodities and foreign exchange hedge executed to mitigate the risk of fluctuation in the cost of natural gas and that related to its sale, in line with the indexing formulas and the risk factors included.

         Revenues from services provided include, essentially, revenues for energy services of Edison Next (537 million euros in 2025, 506 million euros in 2024).

         15,177

         4,737

         12,338

         3,522

         10,326

         8,703

         7,040

         6,081

         (6,926)

         (5,968)

         2025

         2024

         Sundry items

         Total

         488 427 61

         15,177 12,338 2,839

         14.3%

         23.0%

         
         
         

      2. Commodity and logistic costs

         Commodity and logistic costs	2025	2024 Change Change %
         (in millions of euros)
         Natural gas	7,592	6,332	1,260	19.9%
         Realized commodity derivatives	1,616	1,353	263	19.4%
         Electric power	2,738	1,846	892	48.3%
         Transmission costs	2,609	2,235	374	16.7%
         Regasification fee	134	145	(11)	(7.6%)

         Eliminations Generation & Flexibility Gas Supply & Development of Green Gases Clients & Services Corporate & Environmental Remediation

         
         
         
         
         
         
         

         Commodity and logistic costs show an increase and reflect the issues already commented on the previous section.

         
         
         

         The item Regasification fee of 134 million euros includes the fees paid to regasification terminals.

         
         
         

         941

         975

         352 402

         91 91

         571

         552

         128

         (201)

         126

         (196)

         
         
         

      3. Other costs and services used

         Other costs and services used (in millions of euros)	2025	2024	Change	Change %
         Maintenance	190	188	2	1.1%
         Professional services	271	254	17	6.7%
         Use of property not owned	188	238	(50)	(21.0%)
         Insurance costs	40	39	1	2.6%
         Advertising and communication costs	22	21	1	4.8%
         Sundry items	230	235	(5)	(2.1%)
         Total	941	975	(34)	(3.5%)

         2025 2024

         Eliminations Corporate & Environmental Remediation

         Clients & Services Gas Supply & Deve lopment of Green G ases

         Generation & Flexibility

         During the year there was a decrease in costs for the use of property not owned, mainly due to lower fees on hydroelectric concessions compared to 2024. This effect was partially offset by an increase in costs for professional services.

      4. Labor costs

         These costs recorded an increase of 8 million euros compared to the previous year, partially due to the growth of average payroll.

         461 453

         77

         76

         90

         96

         266

         265

         21

         23

         2025 2024

         Generation & Flexibility Gas Supply & Development of Green Gases
         
         Clients & Services Corporate & Environmental Remediation
         
         

         The following table shows the average number of employees in 2025 and 2024 and provides the classification by category together with the changes of the year.

         Changes by employee category (*) (number of employees)	12.31.2024 (°)	Added to payroll	Removed from payroll	Changes of classification	12.31.2025	Average payroll 2025 (°°)	Average payroll 2024 (°°)
         Executives	220	4	(9)	7	222	220	218
         Office staff and Middle manager	3,590	279	(311)	14	3,572	3,639	3,519
         Production staff	2,324	257	(527)	(21)	2,033	2,259	2,357
         Total for the Group	6,134	540	(847)	-	5,827	6,118	6,094

         (*) Emplo yees repo rted in the table do not include emplo yees of Ediso n Stoccaggio

         (°) Not including emplo yees of the activities lo cated in Sesto San Gio vanni, already shown at December 31, 2024 under the item Emplo yees in activities held for sale (°°) Including emplo yees of the activities lo cated in Sesto San Gio vanni for the entire year 2024, and for 2025 until the date of the sale of these activities .

      5. Other revenues and income and Other costs

         Other revenues and income (in millions of euros)	2025	2024	Change	Change %
         Net reversal in earnings of provisions for sundry risks	36	21	15	71.4%
         Gains on disposals	35	50	(15)	(30.0%)
         Insurance indemnities	26	15	11	73.3%
         Out of period and other income	150	150	-	0.0%
         Total	247	236	11	4.7%

         247 236

         	90		81
         	45		27
         			122 (17) 23
         	100
         	(16) 28

         
         
         

         Eliminations Corporate & Environmental Remediation

         Clients & Services Gas Supply & Development of Green Gases

         Generation & Flexibility

         2025 2024

         
         
         

         The increase in the item Net reversal in earnings of provisions for sundry risks is mainly due to the elimination of certain risks related to industrial activities within the Clients & Services. The item Gains on disposals includes, for both years under comparison, some non-recurring positive effects; in particular, in 2025 this item includes the capital gain related to the sale of the activities located in Sesto San Giovanni for an amount of 27 million euros, while in 2024 it included the effect of the sale of some assets in Poland by Edison Next for about 27 million euros.

         The item Out of period and other income includes 11 million euros (12 million euros in 2024) from the operations managed in compliance with MASA joint venture agreement with EDF Trading, as described in paragraphs 4.1 Market risks and risk management and 9.4 Intercompany and Related-party transactions.

         Other costs (in millions of euros)	2025	2024	Change	Change %	85	130 27
         Indirect taxes and duties	16	15 41 74	1 (21) (25)	6.7% (51.2%) (33.8%)	23 5 51 18 (12) 2025 Eliminations	15 80 20 (12) 2024 Corporate & Environmental Remediation
         Additions to provisions for risks	20
         Out of period and sundry items	49
         Total	85	130	(45)	(34.6%)	Clients & Services Generation & Flexibility	Gas Supply & Development of Green Gases

         
         
         

         The item Out of period and sundry items includes losses on disposals for 4 million euros (5 million euros in 2024).

   3. From EBITDA to Profit (Loss) from continuing operations

      In addition to the industrial performance discussed above, it is worth of noting, in particular:

      • depreciation and amortization for 518 million euros (498 million euros in 2024) and net writedowns for 33 million euros (24 million euros in 2024). For further information please refer to chapter 5. Fixed assets, Financial assets and Provisions;

      • the net change in fair value of derivatives (commodities and exchange rate risk), positive for 63 million euros (negative for 4 million euros in 2024). For further information please refer to chapter 4. Market risk management;

      • net expense on non-Energy Activities, which include the adjustment of some provisions for risks linked to environmental remediation, amounting to 394 million euros (628 million euros in 2024); for further detail please refer to chapter 8. Non-Energy Activities.

      EBIT amounted to 423 million euros (554 million euros in 2024).

      Financial items, which include the expenses on assigned trade receivables without recourse, recorded a total of 83 million euros in net expense, worsening compared to 2024 (net expense of 40 million euros); the change is mainly attributable to exchange rates effects and to lower net financial income on debt.

      As regards Net financial income (expense) on debt and Net financial income (expense) on assigned trade receivables without recourse reference should be made to paragraphs 6.3 Total financial indebtedness and cost of debt and 3.2 Operating working capital, respectively; the following table is a breakdown of the item Other net financial income (expense).

      Other net financial income (expense) (in millions of euros)	2025	2024 Change
      Financial expenses on provisions Net foreign exchange translation gains (losses) (*) Other	(6) (16) (22)	(8) 2 12 (28) (17) (5)
      Other net financial income (expense)	(44)	(13) (31)

      (*) Including net results of the transactions with EDF Sa to cover exchange rate risk.

      The trend of the item Net foreign exchange translation gains (losses) reflects, among other things, the results of hedging derivatives linked to the exchange rate between euro and U.S. dollar, which were affected by the significant depreciation of the U.S. dollar during 2025.

      After including the effect of income taxes (net expense for 117 million euros, compared to net expense for 158 million euros in 2024; please see chapter 7. Taxation) and net income from equity investments (20 million euros, compared to net income for 30 million euros in 2024; please see paragraph 5.2 Equity investments and Other financial assets), the Profit (Loss) from continuing operations is 243 million euros in profit, 386 million euros in profit in 2024.

   4. Profit (Loss) from discontinued operations and Group interest in profit (loss)

      Profit (Loss) from discontinued operations is a profit for 27 million euros (60 million euros in 2024) and includes for 7 million euros (31 million euros in 2024) the revenues and income and costs and expenses attributable to gas storage activities, until the date of the sale, to which should be added the net capital gain related to the sale for about 19 million euros. It should be remembered that in 2024 this item also included for 29 million euros an income determined by the revision of the estimated value of the earn-out set forth in the agreement with Energean following the sale of the E&P business in 2020 and related to the commissioning of Cassiopea gas field in Italy; this earn-out was collected during 2025.

      For further information please refer to paragraph 9.2 Information pursuant to IFRS 5.

      Minority interest in profit (loss) is 30 million euros in profit (43 million euros in 2024) and essentially reflects the performance of Edison Rinnovabili (owned by Edison at 51%) and its subsidiaries.

      The Group interest in profit (loss) is equal to 240 million euros in profit (a profit for 403 million euros in 2024).

2. Net working capital

   Net Working Capital (in millions of euros)	12.31.2025	12.31.2024	Change
   Trade receivables	2,463	2,690	(227)
   Inventories	158	178	(20)
   Trade payables	(2,393)	(2,527)	134
   Operating Working Capital (A)	228	341	(113)
   Other non-current assets	227	301	(74)
   Other current assets	538	461	77
   Other non-current liabilities (*)	-	(10) 10
   Other current liabilities	(666)	(665)	(1)
   Other assets (liabilities) (B)	99	87	12
   Net working capital (A+B)	327	428	(101)

   (*) It sho uld be no ted that the item 'Other no n-current liabilities' here expo sed do es no t include the liabilities belo nging to 'Total financial indebtedness', amo unting to 92 millio n euro s (220 millio n euro s at December 31, 2024); reference sho uld be made to paragraph 6.3 Total financial indebtedness and cost of debt.

   Overall, Operating working capital decreased compared to December 31, 2024. The price scenario of main energy commodities showed lower average values than in 2024.

   1. Credit risk management

      The credit risk represents Edison Group's exposure to potential losses that could be incurred if a commercial and/or

      financial counterpart fails to meet its obligations.

      In order to manage and control this risk, the Edison Group has adopted strategies, governance tools and policies, with the primary objective of ensuring that exposure to this risk does not compromise the Group's financial and development objectives. In particular, as part of the Credit Risk Policy, the Group has for some time now implemented procedures and tools for the evaluation and selection of counterparties on the basis of credit standing, the continuous monitoring of exposure to the various counterparties and the implementation of appropriate mitigation actions, which are better commented in section 3.2.1 below.

      At December 31, 2025, there were no significant exposures to risks related to a possible deterioration of the overall financial environment and/or significant concentrations with individual non-institutional counterparties.

   2. Operating working capital
      
      

      The operating working capital shows a decrease, compared to December 31, 2024, in particular in the Clients & Services business area, primarily because of a reduction in overdue receivables.

      1. Trade receivables

         Trade receivables (in millions of euros)	12.31.2025	12.31.2024 Change
         Generation & Flexibility	630	644 (14)
         Gas Supply & Development of Green Gases	995	1,131 (136)
         Clients & Services	1,284	1,474 (190)
         Corporate & Environmental Remediation	29	7 22
         Eliminations	(475)	(566) 91
         Trade receivables	2,463	2,690 (227)
         of which allowance for doubtful accounts	(145)	(156) 11

         Guarantees in place to hedge receivables outstanding 212 151 61

         Trade receivables in particular stem from contracts to supply electric power and steam, contracts to supply natural gas and Power Exchange transactions, as well as contracts to provide energy services of Edison Next. The eliminations mainly refer to receivables of the two business areas Gas Supply & Development of Green Gases and Generation & Flexibility owed by the business area Clients & Services for sales of gas and electric power to meet sales requirements to end customers.

         Edison Group regularly carries out transactions to assign trade receivables without recourse on a revolving monthly basis and by the transfer of credit risk on a non-recourse basis. Note that in 2025 the receivables assigned with such transactions totaled 7,406 million euros (5,959 million euros in 2024). These receivables were not exposed to the risk of recourse at December 31, 2025. The costs related to managing these activities are recorded under financial items and amount to 52 million euros (56 million euros in 2024).

         248

         Past due receivables

         354

         117

Edison Group continues to pursue a credit management approach differentiated over three market segments (Retail, Business and Public Administration), which is aimed, through structural actions, at preventing the formation of new trade receivables and quickly collect both current and non-performing receivables. The decrease of past due receivables compared to December 31, 2024 is

mainly related to the business area Clients &

12.31.2025 12.31.2024

Within 6 months From 6 to 12 months Over 12 months

Services, thanks in particular to the resolution of some positions with Business clients.

The table that follows shows the changes in "Allowance for doubtful accounts":

(*) Including default interests

Additions to the allowance reflect the result of an assessment, performed consistent with the Group's policy, of the different status of receivables, taking into account each customer segment, the corresponding past-due receivables and the aging; utilizations were mainly recognized for receivables deemed uncollectible during the year.

EBITDA of the year shows net charges related to writedowns and reversals on receivables for 17 million euros, slightly decreasing compared to 2024 (19 million euros of net charges).

The amount of the allowance for doubtful accounts is determined based on the different underlying credit statuses or, particularly for receivables owed by Retail customers, taking into account the relative age of the non-performing receivables

and the methodology envisaged in the IFRS 9 accounting standard (so-called expected credit losses model). It should also be noted that there are in effect three insurance contracts on the receivables related to a part of the Business customers and to other types of customers; these contracts are aimed at reducing the credit risk on the customers concerned.

1. Market risk management

   This chapter provides an overview of the policies and principles adopted by the Edison Group to manage and control the commodity price risk that arises from the volatility of the prices of energy commodities and environmental securities, the foreign exchange risk linked to commodities and other risks related to foreign exchange rate.

   In accordance with IFRS 7 Financial Instruments - Disclosure, consistent with Management Section of Management, Sustainability and Governance Report, the paragraphs that follow provide information about the nature of the risk related to financial instruments, based on accounting and management sensitivity considerations.

   In addition, effects of derivatives transactions on income statement and balance sheet at December 31, 2025 are provided too.

   1. Market risks and risk management

      1. Commodity price risk and exchange rate risk related to commodity transactions

         The Edison Group is exposed to the risk of fluctuations in the prices of all the energy commodities that it handles (electric power, natural gas, petroleum products and environmental securities), both directly, with pricing formula, and indirectly, through statistical correlations and economic relations, which have an impact on the revenues and expenses of its production and marketing operations. Moreover, because

         some contracts are settled in currencies different from euro and/or include a translation into different currencies through price indexing formulas, the Group is also exposed to exchange rate risk.
         
         

         The management and control of these risks are governed by the Energy Risk Policies, which involve the use of derivatives for hedging purposes in order to reduce or mitigate the related risk.

         From an organizational standpoint, the governance model adopted by the Group requires the separation of the risk control and management functions from the activity of purchasing and selling derivatives.

         At the operational level, the net exposure is computed for the Group's entire portfolio of assets and contracts (so-called Industrial Portfolio), which is the net residual exposure after maximizing all available vertical and horizontal integrations provided by the different business areas. This net exposure is then used to compute the overall level of Economic Capital involved (stated in millions of euros), measured in terms of Profit at Risk (PaR1 ) with a confidence index of 97.5% and an annual time horizon.

         ‌1 Profit at Risk: is a statistical measurement of the maximum potential negative variance in the budgeted margin in response to unfavorable markets moves, within a given time horizon and confidence interval.

         Each year, the Board of Directors approves the Economic Capital ceiling concurrently with the approval of the annual budget. The Hedging Pricing & Counterparty Committee, which is headed by Senior Management, reviews monthly the Group's net exposure and, if the Profit at Risk is higher than the predetermined ceiling, defines the appropriate Strategic Hedging policies, which may involve the use of suitable derivatives instruments.

         These activities are performed in line with the policy of the Group with the aim to minimize the use of financial markets for hedging, by maximizing the benefits of vertical and horizontal integration of the various business areas and the homogenization of the formulas and indexing between the sources and physical uses. In addition, the gradualness of Strategic Hedging ensures the minimization of the execution risk, related to the concentration of all the hedges in a phase of unfavorable market, the volume risk, linked to the variability of the underlying hedged based on the best volume projections, and of the operational risk, related to implementation errors.

         Provided that transactions are approved in advance by the Risk Office, which determines whether they are consistent with the Group's risk management objectives and with the Group's total exposure, the Edison Group, responding to specific requests from individual Business Units, may also use other types of hedges called Operational Hedges with the aim to fix the margin related to a single transaction or to limited set of transactions correlated.

         At December 31, 2025, outstanding derivatives instruments were measured at fair value against the forward market curve at the end of the reporting period, when the underlying assets were traded on markets that provided official and liquid forward prices. When no forward market quotes were available, projected price curves based on simulation models developed internally by the Edison Group were used.

         The Italian forward market for electric power does not yet meet IFRS requirements to qualify as an active market. Specifically, both the Over The Counter (OTC) markets operated by brokerage firms (e.g. TFS) and those operated both by Borsa Tedesca (EEX) and by Borsa Italiana (IDEX) and the Manager of the Energy Markets (MTE) lack sufficient liquidity for peak and off-peak products and for maturities longer than one year.

         Consequently, market price data obtained from those market should be viewed as input for the internal valuation model used to measure at fair value the abovementioned products.

         As required by IFRS 7, a simulation is carried out for the derivatives instruments that hedge the Industrial Portfolio, some of which qualify for hedge accounting under IFRS 9 (Cash Flow Hedges or Fair Value Hedges) while others qualify as Economic Hedges, to assess the potential impact that fluctuations in the market prices of the underlying assets could have on the fair value of outstanding derivatives. The simulation is carried out for a length of time equal to the residual lives of outstanding derivative contracts, the farthest maturity of which is currently 2035. For derivative contracts in place at December 31, 2025 the method requires the use of the commodities forward prices and exchange rates, measured at the reporting date, and of the related volatility and correlations.

         Having thus obtained a probability distribution for changes in fair value, it then becomes possible to extrapolate the maximum expected negative change in the fair value of outstanding derivative contracts over the length of a reporting year with a level of probability conventionally set at 97.5%.

         The following table shows, based on the method explained above, the maximum expected negative variance in the fair value of the outstanding hedging derivatives, with a 97.5% probability and a one-year time horizon, compared with the fair value determined at December 31, 2025.

         Value at Risk (VaR) (*) (in millions of euros)	12.31.2025	12.31.2024
         Maximum negative variance in the fair value of derivatives	268	291
         Maximum negative variance in the fair value including the change in the fair value of the contracts object of hedge	87	110

         (*) Value at Risk: is a statistical measurement of the maximum potential negative variance in portfolio's fair value in response to unfavorable market moves, within a given time horizon and confidence interval.

         The decrease of the maximum variance in the fair value, compared with the level measured at December 31, 2024, is mainly attributable to the reduction of the volatility in commodity prices and to the reduction in the volumes of derivatives traded in the energy markets in which the Company operates.

         The hedging strategy deployed during the year enabled the Group to comply with its risk management objectives; the Industrial Portfolio's commodity price risk profile within the approved limit of Economic Capital in terms of absorption of economic capital is the following:

         Industrial portfolio Economic Capital absorbed	2025 without with derivatives derivatives	2024 without with derivatives derivatives
         Average absorption of the approved limit of Economic Capital Maximum absorption	111% 46% 212% - Feb.'25 92% - Feb.'25	53% 30% 109% - Jan.'24 54% - Feb.'24

         Please note that Edison Spa's trading operations are conducted under the joint venture agreement with EDF Trading. Effective January 1, 2023, the agreement that had been in force since September 2017 between EDF Trading and Edison Spa (formerly Edison Trading Spa merged into Edison Spa on December 1, 2017), i.e. the MASA (Trading Joint Venture and Market Access Services Agreement) was renewed, which, like the previous agreement, governs both proprietary trading activities, carried out through a joint desk with EDF Trading, and access activities to the power forward market, the terms and conditions and costs of which have been revised.

      2. Foreign exchange risk

         The foreign exchange risk arises from the fact that part of the activities of the Edison Group are carried out in currencies other than the euro or are influenced by changes in foreign exchange rates through contractual components indexed to a foreign currency. Revenues and expenses denominated in foreign currencies can be affected by fluctuations in foreign exchange rates that have an impact on sales margins (economic risk). Likewise, the amount of trade and financial payables and receivables denominated in foreign currencies can be affected by the translation rates used, with an impact on profit or loss (transactional risk). Lastly, fluctuations in foreign exchange rates have an impact on consolidated results and on the shareholders' equity attributable to Parent Company shareholders because the financial statements of subsidiaries denominated in a currency other than the euro are translated into euros from each subsidiary's functional currency (translational risk).

         The foreign exchange risk management objectives are described in specific Policies. The exposure to economic and transaction risk arising from exchange rate, related to commodity transactions, is managed in accordance with specific limits and strategies (see the previous section in this regard).

   2. Hedge Accounting and Economic Hedge - Fair Value hierarchy

      Whenever possible, the Group applies hedge accounting verifying compliance with the requirements of IFRS 9.

      1. Classification

         Forward transactions and derivatives outstanding are classified as follows:

         1. Derivatives that qualify as hedges in accordance with IFRS 9. This category includes (i) transactions that hedge the risk of fluctuations in cash flow (Cash Flow Hedge - CFH) on interest rates, exchange rates and commodity and (ii) transactions that hedge the fair value of the hedged item (Fair Value Hedge - FVH) on commodity (price and exchange rate).

         2. Forward transactions and derivatives that do not qualify as hedges in accordance with IFRS 9 that comply with the requirement of the company policies on management of exchange rate and energy commodity risks.

      2. Fair Value hierarchy according to IFRS 13

         The classification of financial instruments at fair value, provided by IFRS 13, based on the reliability of inputs used to measure it, is based on the following hierarchy:

         • Level 1: Determination of fair value based on quoted prices (unadjusted) for identical assets or liabilities in active markets. Instruments with which the Edison Group operates directly in active markets (e.g. futures) are included in this category.

         • Level 2: Determination of fair value based on inputs other than the quoted prices of "Level 1" but which are directly or indirectly observable (e.g. forward contracts or swaps in futures markets).

         • Level 3: Determination of fair value based on valuation models with inputs not based on observable market data (unobservable inputs). At December 31, 2025, two categories are classified at this level whose fair value is negative for about 2 million euros (one category at December 31, 2024 whose fair value was positive for about 2 million euros).

           The valuation of financial instruments can entail significant subjective judgment. However, Edison uses prices quoted in active markets, when available, as the best estimate of the fair value of all derivatives.

   3. Effects of derivatives transactions on income statement and balance sheet at December 31, 2025

      1. Effects of derivatives transactions on income statement at December 31, 2025

         (in millions of euros)	12.31.2025			12.31.2024
         	Change in Fair Realized Value in the period (A) (B)		Amounts recognized in earnings at 12.31.2025 (A+B)	Realized (A)	Change in Fair Value in the period (B)	Amounts recognized in earnings at 12.31.2024 (A+B)
         Result from price risk and exchange risk hedges for commodities of which:
         Total definables as hedges pursuant to IFRS 9 (CFH) (*)	(302)	(5)	(307)	(31)	(22)	(53)
         Price risk hedges for energy products	(299)	(4)	(303)	(36)	(22)	(58)
         Exchange risk hedges for commodities	(3)	(1)	(4)	5	-	5
         Total definables as hedges pursuant to IFRS 9 (FVH)	1,104	-	1,104	1,065	9	1,074
         Price risk hedges for energy products	1,112	72	1,184	1,060	(408)	652
         Exchange risk hedges for commodities	(8)	(15)	(23)	5	18	23
         Fair value physical contracts	-	(57)	(57)	-	399	399
         Total not definables as hedges pursuant to IFRS 9	(845)	68	(777)	(699)	9	(690)
         Price risk hedges for energy products	(844)	68	(776)	(711)	9	(702)
         Exchange risk hedges for commodities	(1)	-	(1)	12	-	12
         Total price risk and exchange risk hedges for commodities	(43)	63	20	335	(4)	331
         TOTAL INCLUDED IN EBIT	(43)	63	20	335	(4)	331
         Result from interest rate hedges:
         Definables as hedges pursuant to IFRS 9 (CFH)	-	-	-	-	-	-
         Not definables as hedges pursuant to IFRS 9	-	-	-	-	-	-
         Total interest rate hedges (A)	-	-	-	-	-	-
         Result from exchange rate hedges:
         Definables as hedges pursuant to IFRS 9 (CFH)	(54)	-	(54)	26	-	26
         Not definables as hedges pursuant to IFRS 9	-	-	-	-	-	-
         Total exchange rate hedges (B)	(54)	-	(54)	26	-	26
         TOTAL INCLUDED IN FINANCIAL ITEMS (A+B)	(54)	-	(54)	26	-	26

         (*) Includes the ineffective portion.

         With reference to the year 2025, the general decline in commodity prices compared to those set in hedging transactions had a negative impact on the overall result of the derivatives realized, while generating a positive effect on the change in fair value of derivative positions still outstanding.

         On the results of 2024 had also a negative impact the effects deriving from the postponement of the start of a long-term gas import contract from the United States, with the consequent discontinuation of the outstanding derivatives.

         The economic results of the operations managed in compliance with MASA joint venture agreement with EDF Trading -so-called Profit Sharing - are not included in the table above because are recorded in the item 'Other revenues and income' (11 million euros in 2025, 12 million euros in 2024).

         Focus on Net change in fair value of derivatives (commodity and exchange rate risk)

         The table below provides the 2025 and 2024 effects on the income statement from the changes in the fair value of the derivatives (commodity and foreign exchange rate), positive for 63 million euros and negative for 4 million euros respectively (please see line "Total included in EBIT" with interception with columns B in the previous table).

         Net change in fair value of derivatives (commodity and exchange rate risk) (in millions of euros) 2025 Hedges of price ris k on energy products Hedges of foreign exchange ris k on com modities Change in fair value in physical contracts (FVH)	Definable as hedges (CFH) (*) (4) (1) -	Definable as hedges (FVH) 72 (15) (57)	Not definable as hedges 68 - -	Total net change in fair value 136 (16) (57)
         Total 2025	(5)	-	68	63
         2024
         Hedges of price ris k on energy products	(22)	(408)	9	(421)
         Hedges of foreign exchange ris k on com modities	-	18	-	18
         Change in fair value in physical contracts (FVH)	-	399	-	399
         Total 2024	(22)	9	9	(4)

         (*) It refers to the ineffective portion.

         The change recorded during the year, amounting to approximately 63 million euros, is mainly due to price risk hedging activities relating to gas for thermoelectric power plants, including PSV TTF spread management transactions classified as Economic Hedges for the component relating to TTF. Consistent with this classification, the fair value effects of TTF hedges are recognized directly in the income statement. The change compared with the previous year is mainly attributable to the changed market environment and the methods used to implement hedging strategies that do not reflect structural changes in the Group's industrial risk profile.

         We remind that the Group extensively applies hedge accounting, through both Cash Flow Hedge and Fair Value Hedge operations, and that principle IFRS 9, which entered into force starting from January 1, 2018, changed these amendments, also modifying the rules of the accounting hedge relationships approaching the logics of recognition to those of risk management, consequently reducing the volatility effects.

      2. Effects of derivatives transactions in balance sheet at December 31, 2025

         The following table shows Fair Value breakdown recorded in balance sheet and gives its classification according to IFRS 13.

         (in millions of euros) Broken down as follows:	Receivables	12.31.2025 Payables	Net	Receivables	12.31.2024 Payables	Net
         - Financial assets (liabilities)	-	-	-	-	-	-
         - Non-current assets (liabilities)	42	(27)	15	51	(22)	29
         - Current assets (liabilities)	298	(201)	97	534	(637)	(103)
         Fair Value recognized as assets or liabilities (a)	340	(228)	112	585	(659)	(74)
         of which of (a) related to:
         - Interest Rate Risk Management	-	-	-	-	-	-
         - Exchange Rate Risk Management	2	(13)	(11)	66	(3)	63
         - Commodity Risk Management	326	(193)	133	407	(592)	(185)
         - Fair value on physical contracts	12	(22)	(10)	112	(64)	48
         Broken down on fair value hierarchy:
         - Level 1	110	(41)	69	28	(44)	(16)
         - Level 2	230	(185)	45	555	(615)	(60)
         - Level 3 (*)	-	(2)	(2)	2	-	2
         IFRS 7 potential offsetting (b)	(15) 15			(102) 102
         Net Fair Value including potential offsetting (a+b)	325	(213)	112	483	(557)	(74)

         (*) The fair value classified at level 3 is recognized for -2 million euros in CFH reserve (+2 million euros in CFH reserve at 12.31.2024)

         It is worth of mentioning that, as a counterpart of assets and liabilities shown above, a positive Cash Flow Hedge reserve

         was recorded in the shareholders' equity. For more information, please refer to paragraph 6.1 Shareholders' equity.

         Instruments outstanding at December 31, 2025

         The tables that follow provide an illustration of the information listed below:

         • fair value hierarchy;

         • derivatives that were outstanding, classified by maturity;

         • the value at which these contracts are reflected on the balance sheet, which is their fair value.

           1. Interest rate and foreign exchange rate risk management

              (in millions of euros)	Fair Value hierarchy (***)	Notional amount (*)														Ba la nc e she e t va lue a t 12 . 3 1. 2 5 ( * * )	Notional amount at 12.31.24 (*)		Balance sheet value at 12.31.24 (**)
              		due within 1year			due between 2 and 5 years					due after 5 years			Total				Total
              Interest rate risk management: - Cash Flow Hedge pursuant to IFRS 9	2	10			17							-	27			-	37		-
              Total interest rate derivatives		10			17							-	27			-	37		-
              Foreign exchange rate risk management:		due within 1year receivable payable			due between 2 and 5 years receivable payable					due after 5 years receivable payable			Total receivable payable				Total receivable	payable
              A. Cash Flow Hedge pursuant to IFRS 9, broken dow n as follow s: . on commercial transactions . on financial transactions	2 2	943 (953) (5) 5				- -				- -		- -	943 (953) (5) 5			(10 ) (10) -	1,072 -	- -	42 42 -
              B. Fair Value Hedge pursuant to IFRS 9, broken dow n as follow s: . on commercial transactions . on financial transactions	2 2	202 -	- -			- -				- -		- -	202 -	- -		(1) (1) -	291 -	- -	13 13 -
              C. Contra c ts tha t do not qua lify a s he dge s in a c c orda nc e with IFRS 9 , to he dge ma rgins: . on commercial transactions	2	-	-			-				-		-	-	-		- -	20	(78)	8 8
              Total foreign exchange rate derivatives		1, 14 0 (9 4 8 )			-		-			-			1, 14 0 (9 4 8 )			(11)	1, 3 8 3	(7 8 )	63

              (*) Represents the sum of the notional amounts of the basic contracts that would result from an unbundling of complex contracts.

              (**) Represents the net receivable (+) or payable (-) recognized on the balance sheet following the measurement of derivatives at fair value. (***) For the definition see the previous section 4.2.2. "Fair Value hierarchy according to IFRS 13."

           2. Commodity risk management

           P rice risk management pro ducts	fo r	energy	Fair Value hierarchy (***)	Notional amount (*)					B alance sheet value at 12.31.25 ( **)	Notional amount at 12.31.24 (*)	Balance sheet value at 12.31.24 (**)
           				Unit of measure	Due within one year	Due within two years	Due after two years	Total	( in millions of euros)	Total	( in millions of euros)
           A . C ash F lo w H edge pursuant to IF R S 9, bro ken do wn as fo llo ws:									58	(33)
           - Electric power	2 ; 3			TWh	(4.77)	(0.43)	(1.29)	(6.49)	(2)	(4.46)	(1)
           - Natural Gas	1; 2			M illions of therms	728.11	262.18	77.16	1,067.45	25	333.81	(34)
           - LNG and oil	2			M illions of Barrels	-	-	-	-	-	3.20	(12)
           - CO2	1			M illions of tons	(0.95)	(0.42)	(1.29)	(2.66)	35	3.31 14
           B . F air Value H edge pursuant to IF R S 9, bro ken do wn as fo llo ws:									13	(59)
           - Natural Gas	2			M illions of therms	(450.56)	-	-	(450.56)	18	(203.45)	(33)
           - LNG and oil	2			M illions of Barrels	4.23	-	-	4.23	(5)	3.76	(26)
           C . C o ntracts that do no t qualify as hedges pursuant to IF R S 9, to hedge margins:									62	(93)
           - Electric power	2 ; 3			TWh	(0.09)	(0.11)	-	(0.20)	4	(0.01)	4
           - Natural Gas	1; 2			M illions of therms	(0.30)	-	-	(0.30)	58	(157.63)	(97)
           - LNG and oil	2			M illions of Barrels	-	-	-	-	-	- -
           - CO2	1			M illions of tons	-	-	-	-	-	- -
           - Other commodities	2			M illions of tons	-	-	-	-	-	- -
           T OT A L									133	(185)

           (*)+ for net purchases, - for net sales.

           (**)It represents the net receivable (+) or payable (-) recognized on the balance sheet following the measurement of derivatives at fair value. (***) For the definition see the previous section 4.2.2. "Fair Value hierarchy according to IFRS 13".

           The Derivatives in "level 3" include two categories of instruments whose fair value is overall negative for about 2 million euros (one category at December 31, 2024 whose fair value was positive for about 2 million euros), mainly relating to Cash Flow Hedge instruments implemented to reduce price risk on Italian electricity market. Their valuation is based on models which simulate the functioning of the national market based on actual data and assumptions about the evolution of market fundamentals.

2. Fixed assets, Financial assets and Provisions
   1. Tangible, intangible assets and goodwill

      Tangible, intangible assets and goodwill (in millions of euros)	Property, plant and equipment	Intangible assets	Goodwill	Total
      Balance at 12.31.2024 (A)	3,867	375	2,107	6,349
      Changes in 2025:
      - investments	561	160	-	721
      - business combinations	16	-	1	17
      - disposals (-)	(11)	(3)	-	(14)
      - depreciation and amortizations (-)	(379)	(139)	-	(518)
      - writedowns (-)	(20)	(13)	-	(33)
      - change in the scope of consolidation	(31)	(3)	-	(34)
      - other changes	188	(15)	(6)	167
      Total changes (B)	324	(13)	(5)	306
      Balance at 12.31.2025 (A+B)	4,191	362	2,102	6,655

      
      
      
      
      
      
      

      Commitments on fixed assets

      Total commitments amount to about 115 million euros (198 million euros at December 31, 2024) and mainly include investments in progress in Italy, of which 93 million euros linked to the development of projects in the renewables business and 22 million euros linked to thermoelectric power plants.

Contingent assets

Benefit not recognized in financial statements as it is not virtually certain.

Edison Spa - Arbitration proceedings against Venture Global

In 2017, Edison signed a contract with the American company Venture Global LNG Inc to import liquefied natural gas from the United States. The conditions to commence deliveries under the agreement were met around the last quarter of 2022. However, in breach of its contractual obligations, Venture Global never started deliveries of LNG to Edison, preferring to sell this gas to other parties on the short-term wholesale markets. Faced with this decision, in May 2023 Edison began arbitration proceedings against the American company, claiming compensation of about 1,500 million USD. The arbitration is currently underway at The London Court of International Arbitration (LCIA) and is expected to be concluded within the first half of 2026.

Edison Spa - Deferred consideration linked to the sale of Edison Stoccaggio

The sale's agreement of Edison Stoccaggio to Snam Group, executed on March 3, 2025, envisages, in addition to the already collected consideration of 565 million euros, also a potential earn-out that Snam will pay to Edison in case of a positive outcome of an ongoing administrative dispute.

Contingent liabilities

Not recognized in financial statements as they depend on the occurrence of events that are possible, but not probable, or are probable but their impact cannot be quantified reliably and are likely to result in a cash outlay of an amount that cannot reasonably be estimated.

Edison Spa - Arbitration on the enhancement of "dry works" of large hydroelectric derivations On January 23, 2026, awards were issued in the two arbitrations initiated by Edison during 2024 to determine the price of the "dry works" of Codera Ratti and Dongo concessions. The dispute arose following the call for tenders for the renewal of the two concessions, when the Region, through the tender notice, defined a valuation of these works that was very different from what Edison considered legitimate. With the aforementioned decisions, the arbitral tribunals established that the criterion to be used to determine the price of dry works is the "accounting" one (the total value of the works was estimated at approximately 16.2 million euros). The Company, which considers the decision only partially satisfactory, reserves the right to evaluate a possible appeal of the two awards. In any case, it should be noted that the possibility of challenging the arbitral award within the time limits provided for by civil procedural law is available to both parties (Edison and the Region, respectively).

Edison Energia Spa - Natural gas additional charges reimbursement

Along the same lines as the actions for reimbursement of additional electric power charges, some customers have made five claims against Edison Energia for reimbursement of the regional additional charges on natural gas, still provided for by law and applied on their bills, within the time limits of the ordinary civil law statute of limitations (10 years). Of these requests, only three files have reached the judicial stage at the moment, for an amount of 1.9 million euros.