TERNA SPA-UNSPONSORED ADR Business Summary

Terna S.p.A. is the primary owner and operator of Italy’s high-voltage electricity transmission grid, generating the vast majority of its revenue through regulated transmission tariffs determined by the Italian Regulatory Authority for Energy, Networks and Environment (ARERA). The company operates through three primary segments: Regulated Activities, which involve the planning, development, and maintenance of the National Transmission Grid; Non-Regulated Activities, which include specialized energy services (Altenia), transformer manufacturing (Tamini Group), and terrestrial cable production (Brugg Cables); and International Activities, focused on cross-border interconnectors and grid management. Terna competes with major European transmission system operators such as Redeia, Elia Group, and National Grid. As the largest independent TSO in Europe by circuit kilometers, Terna serves as the critical backbone for Italy's energy transition, executing a multi-billion euro investment plan to integrate renewable sources and enhance grid resilience. Founded in 1999 following the liberalization of the Italian power sector, Terna is currently led by CEO and General Manager Pasqualino Monti, who assumed the role in May 2026 after serving as CEO of ENAV. The leadership team includes Chairman Stefano Cuzzilla and CFO Francesco Beccali, who oversee the company's strategic shift toward digital grid transformation and infrastructure modernization. Terna’s ownership structure is anchored by its largest shareholder, CDP Reti S.p.A. (controlled by the state-backed Cassa Depositi e Prestiti), which maintains an approximate 30% stake. The company also benefits from significant institutional backing from global asset managers such as BlackRock and Lazard, alongside strategic industrial agreements with entities like State Grid Europe Limited.