UNDERSTANDING TERNA Home Investors Understanding Terna Share We play a central role in the energy transition in Italy and in integrating renewable energy sources, in order to ensure the overall efficiency of the power system. Our group is characterized by its financial solidity, low risk profile, increasingly sustainable business model and a generous dividend policy AT THE HEART OF THE EUROPEAN ENERGY TRANSITION We are the largest independent electricity transmission grid operator in Europe and a world leader in terms of kilometers of lines managed (over 74,000). We are well aware that power grids are the main enabling factor in achieving global decarbonisation goals. Thanks to our central position in the Italian electricity market, therefore, we are “directors” and facilitators of the energy transition towards more efficient and sustainable power production methods. FOCUS ON REGULATED DOMESTIC ACTIVITIES NEW OPPORTUNITIES ON NON-REGULATED MARKETS SUSTAINABLE BUSINESS OBJECTIVES FINANCIAL STABILITY AND A STRONG BALANCE SHEET EXCELLENT RETURNS FOR SHAREHOLDERS FOCUS ON REGULATED DOMESTIC ACTIVITIES Our 2021-2025 industrial plan is based upon a significant increase in sustainable investments in order to meet the growing system needs of the Italian power system, in line with the Green New Deal and Italy’s national decarbonisation strategy. We expect to invest € 8.9 billion in Italy - which is 22% more than the previous plan - to further modernise and develop the grid so as to ensure the security, resiliency and efficiency of the electricity market at the lowest possible cost to citizens and businesses. We expect that the value of the Group’s Regulated Asset Base (RAB) will see a compound annual growth rate (CAGR) of 6% over the plan period, a sharp increase compared to the past, reaching € 21.8 billion in 2025. Go back up NEW OPPORTUNITIES ON NON-REGULATED MARKETS As regards non-regulated activities in Italy, in the coming years we will continue to develop technologically innovative and digital solutions to support the energy transition, which will contribute € 450 million cumulated to the Group’s EBITDA during the plan period (2021-2025). Internationally, our activities, which are characterised by a low risk profile and a limited capital absorption, are expected to provide a cumulated contribution to EBITDA of more than € 200 million during the five-year period, in consideration of investments in new projects totalling no more than € 300 million. In line with our role as “director” of the national energy system, we may seize any new development opportunities in Italy – not currently included in our 2021-2025 plan – with the aim of driving the transformation of the system currently under way. Go back up SUSTAINABLE BUSINESS OBJECTIVES We create value for shareholders and stakeholders thanks to continual commitment in terms of professional excellence and a responsible approach to the community, fully respecting the environment and the areas in which we operate. Non-financial targets play a significant part in the 2021-2025 Industrial Plan, with the aim of ensuring the sustainability of the business and value creation in the medium to long term. The targets are divided into four areas: human resources stakeholders and local communities integrity, responsibility and transparency environment These four areas translate into 14 objectives, within which we have defined 120 activities distributed over the duration of the plan. Based on the criteria of the European Union taxonomy, 95% of our investment in Italian regulated activities are by nature sustainable. Go back up FINANCIAL STABILITY AND A STRONG BALANCE SHEET Our particularly solid balance sheet and financial structure is a defining element of our low-risk profile. Thanks to our robust cash flow, as at 31 December 2020 group net equity was € 4,370 billion, compared with € 4.190 billion at the end of 2019. Net financial debt reached around € 9,173 billion as of 31 December 2020, compared to around 8.258 billion euros as of 31 December 2019, due to investments made during the period. Despite the acceleration investments, we are committed to maintaining a solid and sustainable capital profile over the 2021-2025. Go back up EXCELLENT RETURNS FOR SHAREHOLDERS Our dividend policy targets a CAGR for dividend per share (DPS) of 8% between 2021 and 2023, compared with the 2020 dividend. The payout ratio for 2024 and 2025 is expected to be 75%, with a guaranteed minimum dividend equal to the 2023 dividend. From our IPO until the end of 2020, Terna shares have provided a total shareholders return (TSR) of approximately +802%. Go back up TERNA IS THE FIRST GRID OPERATOR FOR ELECTRICITY TRANSMISSION IN EUROPE. WE PROMOTE THE ENERGY TRANSITION AND SUSTAINABLE DEVELOPMENT BY FOCUSING ON PEOPLE AND INNOVATION. We work every day to build an atmosphere of dialogue and trust in local areas, to which we bring a vital asset for everyone's economic and social lives: electricity. > FIND OUT MORE Useful links CALENDAR GENERAL ARCHIVE CERT REAL ESTATE ASSETS ACCESSIBILITY PRIVACY COOKIE DECLARATION LEGAL NOTICE INSERT CV Portals PURCHASES SUPPLIERS QUALIFICATION GAUDI GSTAT ENERGY DISTRIBUTORS MY TERNA RTN HOLDERS OUR SITES: OPEN AND TRANSPARENT SETTLEMENT CERTIFICATION WHISTLEBLOWING TERNA PLUS TERNA SpA - Fully paid-up share capital € 442.198.240 - Registered office in Italy, Viale Egidio Galbani, 70 - 00156 Rome - Tel +39 06 83138111 Rome Company Register - Tax code and VAT number 05779661007 - REA of Rome 922416