History

Terna has been an essential industrial and service reality for years, among the leading players of the national energy scenario. On 1 November 2005 the unification of the ownership and management of the National Transmission Grid became effective headed by Terna, as part of the liberalization process of the electricity market that included the privatization of the grid ownership and the establishment of many different market competitors in Italy and abroad.The appointment of the Company’s new Board of Directors with Luigi Roth and Flavio Cattaneo, respectively as Chairman and CEO, marked the beginning of a new approach toward the development of the Italian electricity grid and its investments on the Italian electricity grid.

Below is a brief summary of Terna’s most recent history:

1 May 1999: the Terna company was established within the Enel Group in compliance with Legislative Decree no. 79/99 (“Decreto Bersani”) that as part of the liberalization process of the Italian electricity sector authorized the separation between the ownership and management of the National Transmission Grid. Terna’s activities concern the operation and maintenance of the National Transmission Grid’s plants and systems belonging to the Enel Group and their development according to the guidelines issued by the GRTN (Gestore della Rete di Trasmissione Nazionale-National Transmission Grid Operator).

23 June 2004: Terna was listed in the Italian Electronic Stock Exchange, with a value of € 1.70 per share.

2005 marked a turning point: on 31 March, Enel transferred to Institutional Investors 13.86% of Terna’s share capital that it owned. On 15 September, Enel transferred 29.99% of Terna’s share capital to Cassa Depositi e Prestiti and the company took on its present shareholding structure. On 1 November, the unification of ownership and management of the transmission grid became effective headed by Terna. On 2 November, the Shareholders’ Meeting appointed the new Board of Directors for the 2005-2007 three year period; Luigi Roth as Chairman and Flavio Cattaneo as CEO, reconfirmed for a second three-year term on 28 April 2008.

27 October 2006: Terna successfully carried out the takeover aimed at listing its subsidiary Terna Participaçoes in the Segmento Nivel 2 of the San Paolo Stock Exchange in Brazil (Bolsa de Valores de São Paulo - BOVESPA).

Five record-breaking years

History is built with each day: from 2005 to 2010, five years of success for Terna in the economic, financial, technological and development fields.
With a Stock Market value that increased by over 55% from November 2005 to the end of 2010, Terna is confirmed as the leading company of the Italian Stock Exchange. Its capitalization rose from € 4.1 billion in November 2005 to € 6.3 billion at the end of 2010, allowing the Company to climb 12 positions in the FTSE Mib ranking, from 26th to 14th (11th in the industrial sector).

The Company’s last 6 financial statements have demonstrated a constant growth trend for all the fundamental indicators. Over 20 consecutive steady quarters. Revenues doubled while the EBITDA margin rose from 65% to 74%. Grid investments reached € 4 billion – quadrupling the previous five year period – for 2,200 km of new power lines, a value 6 times higher than that implemented in the 2000-2004 period. The dividends policy always ensured coupons increasing over the
guaranteed minimum growth of 4%: from 2005 approximately € 2 billion were distributed among shareholders, with an average annual growth of 10%.

Terna acquired over 5,000 km of grid from Acea, Edison, AEM Milano, AEM Torino, A2A and 18,000 km from Enel consequently owning more than 63,000 km of electricity lines, nearly all of the national electricity transmission grid. In 2009, Terna also sold its entire shareholding in Terna Participações, equal to 66% of the capital, leaving Brazil with returns of € 400 million. On 15 March 2010, Terna was appointed the “best utility in Europe”. The “EEI International Utility Award”,
was received by Terna’s CEO Flavio Cattaneo in London and was assigned to Terna as the best European utility for total shareholder return in the past three years: +40%, nearly 55 percentage points more compared to the average in the European sector (that registered -15%).