Terna, the first half results were approved: income and investments

Cases

July 6, 2018 is the new 150 kV power station in San Salvo (Chieti) went into service, connections to the power lines connected to it and connection to the main cabin of San Salvo which supplies the electrical charges in the area. The works carried out make the electrical system of the coastal area of ​​the Adriatic more reliable and safer, which in summer is characterized by an extremely high load.

On July 2, 2018, Terna was the first Italian company to obtain certification of its badet management system, on property, plant and equipment namely lines and electrical installations, in accordance with the standard International ISO 55001: 2014 "Asset Management" which defines the requirements for optimal badet management.

On June 15, 2018 the underground cable 132 kV "CP Sacca Serenella-CP Cavallino" the first phase of the intervention of Terna who will modernize the electrical network of the Venice Lagoon by making it safer and more efficient, out of a total of 14 km, including 10 km of submarines.Terna also began work on the second section and completed the work: the 132 kV underground power line "Fusina 2-CP Sacca Fisola "which will be completed by the end of 2018 and will allow the dismantling of 6.5 km of the existing airline in the lagoon.

Finance

On July 16, 2018, Terna successfully launched a bond issue "green" at a fixed rate for a total of 750 million dollars. euros as part of its Euro Medium Term Notes program of 8 billion euros, with a term of 5 years and a coupon of 1%, with a return of 1.08% (MS + 80bps). the operation is part of the optimization programs Terna's financial service for the Group's investment plan and the cost of the new debt are lower than the overall average figure of 1.6%. The initiative has been very successful at the level of investors with a demand of about six times the offer.

Sustainable development and innovation

On July 12, 2018 the new green transformer of last generation entered service in the power plant of Udine Ovest, isolated in The foreign vegetable (oil) experienced in the last two years. The new machine greatly reduces the risk of fire and reduces the environmental impact through the use of ester of plant origin, renewable and almost 100% biodegradable and replacing the Mineral oil, the petroleum distillate. Terna, at the forefront of the use of this low-impact environmental technology alternative, plans in the near future the installation of green autotransformers in other distributed power plants on the whole of Italy; all this to continue on the path of innovation that is essential for an increasingly safe, modern and sustainable electricity grid.

On May 29, 2018, the second edition of Next Energy was promoted by Terna, the Cariplo Foundation and Cariplo Factory to identify new energy talents in Italy. Bettery is the name of the winning project.

On May 25, 2018, Terna obtained the seventh consecutive confirmation of the ratings of the rating agency Vigeo Eiris Euronext thanks to the results obtained in the Environment, Social and Governance sectors, confirming the solidity and the quality the durability of Terna and its ability to integrate sustainability goals into the company strategy.

Security

On May 10, 2018, the agreement between Terna and the State Police was signed for the protection of networks and systems information in support of the institutional functions of society and the adoption of effective strategies for preventing and contrasting cybercrime.

OPERATIONAL OUTLOOK

In the second half of 2018, Terna will engage in the realization of the Strategic Plan 2018-2022 approved by the Board of Directors and presented to the Community. March 22, 2018.

In particular, the Company will continue to pursue its strategic objectives by greatly accelerating investment activities by focusing on the development of the national transportation network to facilitate the development of the national transportation network. integration of renewable sources and improve the security of the system. At the same time, accelerate the renewal of the Group's badets in order to mitigate the risks of service interruptions, increase environmental sustainability and support maintenance through the use network scanning technologies. Terna will continue to strengthen its investments in innovation and digital solutions to manage the increasing complexity of the system.

With reference to regulation the main electrical infrastructures under construction include interconnections with France and Montenegro, which should be completed by the end of 2019, which will increase the capacity for cross-border exchanges facilitating the development of electricity. 39, gradual integration of markets at European level. With regard to the main projects aimed at improving the quality of service, the construction activities of the submarine links between Capri and Sorrento and in the Venice Lagoon will continue in the second half of the year. The entry into service of the new 380 kV line "Foggia-Benevento" is also expected, which is one of the interventions to facilitate the connection of renewable energy sources located mainly in the south of Italy, with the simultaneous rationalization of the existing network. In addition, in order to comply with the objectives defined in the Strategic Plan and those published by ARERA in Resolution 129/2018 on results-based incentives, preparatory activities are under way to access the measures envisaged in the above-mentioned resolution. ]

With reference to Unregulated the Group will pursue an industrial approach based on distinctive skills, positioning Terna more and more as a supplier of energy solutions through continued growth on the market. energy efficiency and access to integrator activities with higher added value to support the technological evolution and the role of the TSO in the energy transition. With regard to Avvenia, the Group's integration activities will continue, allowing the realization of commercial and industrial synergies as early as the second half of the year. As regards sustainability, in the second half, the activities planned by the agreement protocol signed by ANBI, Coldiretti and Terna will continue for the identification of an action strategy aimed at optimize irrigation resources, energy efficiency and protection of territories. In addition, the Giannutri project should be completed, the first intelligent infrastructure project for the energy transition of small, non-interconnected islands. With regard to telecommunications activities, the focus on high-value services is confirmed by the pursuit of opportunities arising from the development of the Group's infrastructures.

With respect to the International with reference to ongoing projects in Brazil, the construction of lines and stations related to the two concessions, Santa Maria Transmissora de Energia (SMTE) and St. Lucia Transmissora de Energia (SLTE) by the end of 2018. In addition, during the second half of the year, work will continue on the implementation of existing projects in Uruguay and Peru. Scouting activities will continue to identify other opportunities abroad which can also be developed through partnerships and will be selected through evaluation processes that ensure a low risk profile and absorption. limited capital.

OTHER PERFORMANCE INDICATORS

In this press release are used certain "alternative performance indicators" (Ebitda and Net Financial Debt) that are not provided for in the IAS / IFRS accounting standards. meaning and content are illustrated below in accordance with ESMA Directive 2015/1415 published on 3 December 2015:

– EBITDA (gross operating margin): represents an indicator of operational performance; it is calculated as "Net profit for the year" before "Income taxes", "Financial income / (expense)" and "Depreciation, amortization and impairment"

– Net financial debt: Represents an indicator of the financial structure; is determined as a result of short-term financial debt ("short-term loans", "current portion" and "current financial liabilities") and long-term borrowings ("long-term loans") and derivative instruments ("Non-current financial liabilities"), net of "Cash and cash equivalents" and badociated financial badets ("Non-current financial badets" for the value of revenue recognized in advance on available loan fees and " Current financial badets "). It should be noted that Terna Group's net financial debt is in line with the provisions of ESMA Recommendation no. 319 of 2013 concerning the definition of net financial position, after deduction of "non-current financial badets".

Today, at 4:00 pm, a meeting will be organized to present the results of the first half of 2018 to financial badysts and investors, who will also be able to connect journalists in listening mode. Supporting documents for the event will be available on the Corporation's website ( www.terna.it ), in the Investor Relations / Presentations section, in conjunction with the website. beginning of the meeting itself. In the same section, it will also be possible to follow the presentation via webstreaming. The presentations will also be available via the "eMarket SDIR" circuit on the site of Borsa Italiana SpA ( www.borsaitaliana.it ) and the authorized storage mechanism "1Info" ( www.1info.it ).

The director in charge of the preparation of documents of the company accounts, Agostino Scornajenchi, declares in accordance with paragraph 2 of art. 154 bis of the Consolidated Finance Act, that the accounting information contained in this press release is consistent with the results of the document, books and records.

The half-yearly financial report as at 30 June 2018, with the attestation required by article 154-paragraph 5 of Legislative Decree 58/98 (TUF) and the report containing the Opinion of the independent auditors, within the time limit the law will be publicly filed at the registered office, published on the website of the Company ( www.terna.it ) and on the site of the authorized storage mechanism "1Info" ( www.1info .it ), and filed with the market management company Borsa Italiana SpA ( www.borsaitaliana.it ) . It will be disclosed regarding the deposit.

The reclbadified income statement and Terna Group balance sheet and cash flow statement are attached, which represent management's clbadification of results used by management for a more efficient performance appraisal economic and financial group Terna.