Results As of 31 March 2020 Approved

Results As of 31 March 2020 Approved

RESULTS AS OF 31 MARCH 2020 APPROVED • Revenues at € 567.5 million (€ 537.0 million in 1Q19, +5.7%) • EBITDA at € 434.2 million (€ 420.2 million in 1Q19, +3.3%) • Group net profit at € 186.6 million (€ 186.0 million in 1Q19, +0.3%) • Capex at € 217.5 million (€ 164.4 million in 1Q19, +32.3%) • Net debt at € 8,408.5 million (€ 8,258.6 million as of 31 December 2019) Rome, 13 May 2020 – The Chief Executive Officer and General Manager Luigi Ferraris has presented the results of the first quarter of 2020, which were examined and approved by the Board of Directors of Terna S.p.A. (“Terna”) at a meeting held on 13 May 2020 and chaired by Catia Bastioli. “The good results achieved in the first quarter of the year are the outcome of the Group’s constant capex acceleration process, evidence of Terna’s strategic role in the ongoing energy transition in our Country towards full integration of renewable sources. People, innovation, digitization and attention to local communities, with a view to dialogue and listening, continue to be the key pillars of a Strategic Plan that focuses all managerial actions on an increasingly safe, efficient and sustainable electricity grid, at the service of the Country and local communities” said Luigi Ferraris, Terna’s CEO and General Manager. SUMMARY OF 1Q2020 CONSOLIDATED RESULTS € million Q1 2020 Q1 2019 % change Revenues 567.5 537.0 +5.7% EBITDA (Gross Operating Profit) 434.2 420.2 +3.3% EBIT (Operating Profit) 282.0 279.8 +0.8% Group net profit for the period 186.6 186.0 +0.3% CAPEX 217.5 164.4 +32.3% Revenues of the first quarter of 2020 amounted to € 567.5 million and registered an increase of € 30.5 million (+5.7%) compared to the same period in 2019. This result was mainly attributable to the increase in Regulated Activities revenues, and the contribution of Non Regulated and International Activities, specifically to Tamini Group orders, the private Italy-Montenegro Interconnector project and the results linked to the concessions in Brazil. EBITDA (Gross Operating Margin) in the first quarter of 2020 stood at € 434.2 million, with an increase of € 14 million compared to € 420.2 million of the first quarter of 2019, mainly due to the improvement in Regulated Activities. EBIT (Operating Profit) of the period, after amortisation, depreciation and impairment of € 152.2 million, stood at € 282.0 million, with an increase of € 2.2 million compared to the first three months of 2019 (+0.8%). Net financial expenses of the period, equal to € 19.3 million, increased by € 3.4 million compared to the € 15.9 million of the first quarter of 2019. The increase was mainly due to the inflation seasonality and capitalized financial expenses. Profit before tax stood at € 262.7 million, compared to € 263.9 million in the same period of 2019 (- 0.5%). Income tax expense of the period amounted to € 76.4 million and decreased, compared to the corresponding period of the previous year, by € 1.5 million (-1.9%). The tax rate stood at 29.1% (substantially in line with the tax rate of 29.5% registered in the first quarter of 2019). Group net profit for the period was € 186.6 million, up by € 0.6 million (+0.3%) compared to € 186.0 million of the first quarter of 2019. The consolidated statement of financial position as of 31 March 2020 showed equity attributable to owners of the Parent of € 4.329,8 million, compared to the € 4.190,3 million as of 31 December 2019. Net debt stood at € 8.408,5 million, compared to the € 8.258,6 million as of 31 December 2019. Terna Group Capex in the first quarter of 2020 was € 217.5 million, compared to the € 164.4 million of the same period of the previous year (+32.3%). The main projects in the period include: the rationalisation of the - grid in the Naples metropolitan area; the rationalisation in Sicily and in the province of Belluno; the works on Garaguso electricity substation and the installation of devices to increase grid security, adequacy, resilience and stability, e.g. synchronous compensators to manage energy flows in the most critical points -. At the end of March 2020, the Group’s employees were 4,657, up by 367 compared to 31 December 2019. This increase was mainly linked to Brugg Kabel AG, acquired on 29 February. MAIN EVENTS AFTER 31 MARCH 2020 Business Development On 8 April 2020, Terna published the 2020 Development Plan: over € 14 billion of investments for the next decade, enabling the sustainable energy transition and supporting full integration of renewables sources for an increasingly decarbonised system. On 15 April 2020, Terna and Snam renewed their collaboration on coordinated research, development and innovation activities, and potential convergences between electricity and gas systems. The two companies will continue to collaborate to identify, define and implement initiatives by sharing their expertise and best practices to further strengthen their commitment as leaders of the ongoing energy transition. On 23 April 2020 Terna, Tennet and Swissgrid launched Equigy: a new blockchain-based platform, enabling the integration of small and distributed consumer-based units into the electricity-balancing process of the grid. In April 2020. Terna approved the project to rationalise the electricity grid in the provinces of Lodi and Cremona. Terna plans to construct 26 km of new underground lines and demolish 22 km of overhead power lines to support the overall modernisation of the electricity grid. Finance On 30 April 2020, Fitch Ratings Ltd. (“Fitch”) affirmed its Long-Term Issuer Default Rating (IDR) and its senior unsecured rating on Terna S.p.A. at BBB+, with a Stable Outlook. At the same time, the Agency - also affirmed Terna S.p.A.’s Short-Term rating of the issuer (IDR) at 'F2'. The company’s rating is now two notches above that of the Republic of Italy. Fitch’s assessment confirmed the stability of the company, as already affirmed a few days after the presentation of the 2020-2024 Strategic Plan. Innovation On 9 April 2020, Terna and the Polytechnic University of Bari signed an agreement for research, technological development and innovation of the Italian national electricity system infrastructure. The agreement calls for the opening of an Innovation Hub in Bari, the fourth Innovation Hub for Terna in Italy, where a combined team of university researchers and company experts will work side by side on scientific projects of common interest. On 29 April 2020, Terna launched for the first time ever in digital format the Call For Innovation I4G - Innovation For the Grid supported by Digital Magics, a business incubator listed on AIM Italia of the Italian Stock Market. The Call is aimed at startups and innovative SMEs that provide solutions capable of contributing to the digitization and the increase of the Italian transmission grid resilience. This new Call focuses on finding solutions to enhance and improve the IoT monitoring grid that Terna is installing on various assets of the Italian high-voltage electricity system. Sustainability On 16 April 2020, Terna and the General Custody of St. Francis’s Sacred Convent of the Order of Friars Minor Conventual of Saint Francis signed a Memorandum of Understanding for the environmental upgrade and to pursue safety, efficiency and energy sustainability targets in the famous Sacred Convent. The works will allow the historical and architectural complex of Assisi to become a point of reference for both residents and pilgrims also in terms of sustainability. COVID-19 EMERGENCY Employees' health and safety has been a top priority for Terna. In compliance with the guidelines and limitations established by the government and regional authorities for the Covid-19 emergency, Terna has introduced a series of measures to guarantee continuity of the service in complete safety. More specifically: - Terna set up a "Crisis committee", chaired by the Chief Executive Officer, in continuous contact with the Civil Protection Department, the authorities, trade unions and Italy’s major companies: - smart working was introduced for 100% of personnel not involved in direct operations, but for some corporate structures providing essential services or unavoidable service requirements; - regular sanitisation of offices and worksites; - specific "Covid-19" insurance coverage for all employees; - the use of thermal scanners to monitor the body temperature of operators before accessing control and dispatching centres. We also introduced extraordinary sanitisation measures, a new work shift system and backup controls; - all business trips not essential for business continuity and all training activities have been suspended, with the exception of urgent training sessions provided remotely via teleconference. Among the initiatives put in place by Terna and its employees, there is the one promoted by the confederated trade unions. The Group’s employees have donated about 3,000 hours of theirs salaries to improve intensive care units of the Italian’s National Health System and purchase health safety equipment for the Civil Protection. The company immediately agreed and contributed by doubling the money raised by its employees. BUSINESS OUTLOOK Terna is committed to achieving the targets defined in the 2020-2024 Strategic Plan, which confirms the company’s leading role for a sustainable energy transition, leveraging innovation, skills and distinctive technologies in order to generate value for all stakeholders. The Plan foresees an important contribution by the Group, aimed at the further development and integration of renewable energy sources and overall energy efficiency for an increasingly decarbonised, resilient, reliable and secure electricity system in order to guarantee the highest standards of service quality and adequacy, in line with PNIEC and EU guidelines laid down in the New Green Deal.

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