TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

II.ANNUAL MANAGEMENT REPORT OF THE BOARD OF DIRECTORS OF “TERNA ENERGY SOCIETE ANONYME INDUSTRIAL COMMERCIAL AND TECHNICAL COMPANY” ON CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR FINANCIAL YEAR 2024

Dear Shareholders,

According to the provisions of Law 4548/2018 as well as Law 3556/2007 Article 4 par. 2(c), 6,7 & 8 and the decisions issued by the Hellenic Capital Market Commission under No. 8/754/14.4.2016 Article 2 and the Company’s Articles of Association, we are hereby presenting the annual management report of the Board of Directors for the financial year from 01/01/2024 to 31/12/2024.

This report includes the financial and non-financial report of TERNA ENERGY Group for the financial year 2024 and describes the most significant events that occurred before and after the reporting date of the financial statements. Furthermore, it provides a description of the main risks and uncertainties that the Group may face in 2025 and lists the significant transactions entered between the Company and its related parties.

A) Financial Highlights and Performance for the financial year 2024

The Greek economy maintained its positive growth rate for the year 2024, achieving higher levels than the corresponding average of other European countries. This achievement reflects its resilience in a period when the global economy is highly fluctuating and facing significant challenges, particularly at the geopolitical level (ongoing tensions in Ukraine and the Middle East, the political cycles in the US). Over the last year there has been a general normalisation of economic circumstances with inflation declining, energy prices stabilise and the gradual reversal of restrictive monetary policy leading to a positive outlook for the European economy.

For Greece, GDP for 2024 increased by 2.3% year-on-year, driven mainly by an increase in private consumption (as a result of rising household income and falling unemployment) and investment. The momentum in tourism continued, leading to an increase in exports and services, but rising domestic demand led to higher imports with the balance remaining negative.

Inflation for 2024 declined compared to 2023 with the 12-month annual increase of 2.7%, compared to 3.5% for the 12-month period of 2023, following a deceleration in industrial goods and food prices while services inflation remained higher.

In the budgetary sector, the over-performance against targets continued as a result of a reduction in tax evasion, increased economic activity and profitability, but and expenditure control. As a result, the primary surplus is expected at 2,5% of GDP for 2024 (compared to 2,1% for 2023).

Finally, it is also worth noting that following the country's upgrade to investment grade in the second half of 2023 (by R&I, Scope, DBRS, S&P and Fitch), in 2024 Scope Ratings upgraded the Greek economy further to "BBB" while DBRS, S&P and Moody's revised the outlook for the economy to positive. Against this backdrop, the spread of the Greek 10-year bond over the German bond narrowed to 83 basis points in December 2024 (the lowest in 15 years) with the yield standing at 2.97%.

The Greek economy is expected to remain positive in the years to come and to continue to move at a higher rhythm than the Eurozone. For 2025-26, GDP is expected to strengthen by 2.0%-2.5% according to the converging forecasts of the Bank of Greece, the European Commission and the Greek government, compared to a rate of 1.3%-1.6% for the Eurozone. This is expected to be helped by a strong labour market supporting consumption along with continued support from tourism, industry and construction. A positive impact is also expected to come from increasing liquidity from both the private and public sectors, which will be strongly supported by the absorption of European funds. It is noteworthy that total investment spending by the public sector is expected to reach 6,0% of GDP for 2025-26.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Nevertheless, exogenous factors such as the potential strengthening of protectionism and political turbulence in major European economies and key trading partners of Greece are immediate and visible risks to this process.

With regard to the Greek energy market, the normalisation of conditions has generally continued despite some periods of volatility. Thus, in the second half of the year, the return of geopolitical risk that raised again energy sufficiency issues and regional issues in energy markets increased volatility, driving prices to a higher level. The average price in the Greek wholesale electricity market was set at €100.7/MWh for 2024, a decrease of 15.6%. It is also remarkable that for the first time in its history Greece recorded net exports of electricity (even if at a marginal level). Electricity demand in the interconnected system in the country showed an increase of 4.7% for 2024. Renewable energy production increased by 17.8% in 2024 and combined with hydropower plants covered 55% of total demand (compared to 51.3% for 2023). Production from natural gas plants also increased by 38%, covering 39% of demand, while lignite generation continued to decline, covering 6.2% of demand.

In relation to wind power, according to ELETAEN's data, installed capacity at the end of 2024 amounted to 5,355MW, up 126MW compared to 2023 (+2.4%), with the decrease in growth rate due on the one hand to the high base (2023 was the second best year historically in terms of additions) but also an important factor remains the delay due to bureaucratic licensing obstacles. TERNA ENERGY remains the largest producer in the market with a 19.3% share. At the end of 2024, over 1.1 GW of new wind farms were under construction or contracted, the vast majority of which are expected to be connected to the grid within the next 18 months. To these should be added another 300 MW or so, which have been competitively shortlisted, have submitted performance guarantees but do not belong to any of the above categories. As a result, the total wind capacity will exceed 6.5 GW within the next two years.

TERNA ENERGY GROUP

On November 28, 2024, Abu Dhabi Future Energy Company PJSC - Masdar ("Masdar") announced the successful completion of the acquisition of 70% of the shares of TERNA ENERGY S.A. from GEK TERNA S.A. and other shareholders. This transaction is the largest energy transaction in the history of the Athens Exchange and one of the largest in the renewable energy sector in the European Union.

Masdar (Abu Dhabi Future Energy Company) is one of the fastest growing renewable energy companies in the world. As a pioneer in clean energy, Masdar promotes the development and implementation of solar, wind, geothermal, battery storage and green hydrogen technologies, helping to accelerate the energy transition and achieve global zero-carbon targets. Since its founding in 2006, Masdar has developed and invested in projects in more than 40 countries, with a total capacity of more than 31.5 gigawatts (GW), providing affordable clean energy to those who need it most and supporting a sustainable future. Jointly owned by Abu Dhabi National Energy Company PJSC (TAQA), Abu Dhabi National Oil Company (ADNOC) and Mubadala Investment Company, Masdar is targeting a 100GW renewable energy capacity portfolio by 2030 and aspires to become a leading green hydrogen producer in the same year.

The acquisition of TERNA ENERGY Group reflects Masdar's confidence in the company's impressive growth potential, targeting 6GW by 2029, playing an important role in strengthening Masdar's portfolio across Europe as it targets 100GW globally by 2030 to support the energy transition.

Remaining committed to its strategy, TERNA ENERGY Group continues the implementation of its investment plan with the construction of mature projects and the strengthening of its portfolio with the further maturation of projects from the existing portfolio and the addition of new projects in various stages. In this

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

context, through the newly acquired companies ENERGY SUN II, ENERGY SUN III & BIO PI DI SOLAR EOOD, the construction of solar energy production units from photovoltaic power plants in Greece and Bulgaria with a capacity of 168,5 MW has started.

Moreover, for the long-duration storage project with pumped storage technology in the area of Amphilochia (680 MW), which had already started by the end of 2022, construction works are ongoing and expected to be completed within approximately four years.

As of 31/12/2024, TERNA ENERGY Group owns almost 2.500 MW of RES power plants, in operation, under construction or ready for construction in Greece, Central and Eastern Europe. Including projects in various stages of maturity, the Group's portfolio is approaching 12 GW.

Specifically, the Group's total installed capacity in Greece and abroad amounts to 1.224,3 MW.

	TOTAL	GREECE	POLAND	BULGARIA
WIND PARKS	1.197	1.065	102	30
HYDROELECTRIC	17,8	17,8
PHOTOVOLTAIC	8,5	8,5
BIOMASS	1	1
TOTAL	1.224,3	1.092,3	102	30

TERNA ENERGY Group has transferred the biomass power plants of the waste management facilities' (See Notes 5 and 7).

In the context of the agreement for the Sale and Purchase of the Shares of TERNA ENERGY SA by MASDAR HELLAS SA, TERNA ENERGY Group has transferred to GEK TERNA Group the activities of construction of public works, concessions related to the operation of infrastructure and other projects of public interest as well as all research activities in the USA. Therefore, the results of these activities are presented as results from discontinued operations as defined in IFRS 5 'Non-current assets held for sale and discontinued operations'.

In 2024 the Group consolidated sales from continuing operations amounts to € 347,1 million compared to € 252,2 mill. in 2023, with an increase of 37,6%. The Group's operating earnings before interest, taxes, depreciation, and amortization (EBITDA) from continuing operations amounted to € 210,3 million compared to € 172,8 million in the previous year, increased by 21,7%. Excluding the cost of the free share distribution plan, the Group's operating earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations for the year 2024 amount to € 212,6 million, with the respective amount of the previous year was € 173,4million, increased by 22.6%.

Profits before tax from continuing operations to € 93,8 million, increased by 26,2% compared to € 74,3 million in 2023. Net operating profit from continuing operations attributed to the shareholders of the parent company amounted to € 70,4 million, increased by 24,3% compared to the previous year (2023: € 56,7 million).

The increase in sales, operating earnings before interest, taxes, depreciation and amortization (EBITDA) and earnings before and after taxes was mainly driven by the commissioning of the new Wind Farms in the area of Kafireas in Evia and the return to normal levels of wind power, which during the first half of 2023 was extremely low.

The Group's turnover from discontinued operations amounted to € 60,5million compared to € 75,6million in 2023, decrease of 20,0%mainly due to the reduction in the construction operations. The Group's operating loss before interest, tax, depreciation and amortisation (EBITDA) from discontinued operations amounted to a loss of € (17,8) million compared to a profit of € 5,0 million in the previous year. Losses before tax from discontinued operations amounted to € (33,8) million, compared to a profit of € 6,8million in the

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

corresponding period of 2023. Net loss for the year from discontinued operations attributable to owners of the parent company amounted to € (37,1) million, compared with a profit of € 3,0 million in the corresponding same period of the previous year. The negative performance was mainly due to the construction activity which during the year 2024 was loss-making mainly in the construction of the waste management plants of the Peloponnese Region.

Net profit from continuing and discontinued operations excluding the plan's expense from the free share distribution and results from financial instruments at fair value amounted to € 35,1million.

Total comprehensive income (from continuing and discontinued operations) amounted to € 34,0 million compared to a profit of € 62,1 million in the same period of the last year. For the year 2024, the total profit attributable to Owners of the Parent amounted to € 35,7 million, while the profit attributable to Non-Controlling Interests amounted to € 0,7 million.

The amount of research and development expenses incurred by the Group during 2024 amounted to € 6.187thousand compared to € 5.371thousand in the corresponding period of the previous year. These expenses are mainly related to the development of new renewable energy production plants and the capacity to conclude new contracts through public tenders.

The Group's operating cash flow from continuing operations for the year amounted to € 139,1 million, compared to € 147,2 million in 2023. The increase is mainly attributable to the liquidation of the increased results realized in the year 2023 which is expected to be reversed during the 2024 financial year.

On 31/12/2024, TERNA ENERGY Group investments amounted to € 102,0 million. The Group’s on-going investing activities generate the conditions for stabilization of increased flows of revenue and profitability on a long-term basis.

The Group's financial position remains satisfactory, as cash and cash equivalents and restricted cash amounted to € 311,9 million, while the loan liabilities amounted to € 1.107,5 million. The net debt position (debt liabilities minus cash and cash equivalents minus restricted deposits related to debt liabilities) as of 31/12/2024 stands at € 795,6 million compared to € 844,6 million in the previous financial year.

B. Significant events in the year 2024

•Spin-off of Construction and Concessions divisions of the Group's parent company, Terna Energy S.A.

By the decision of the Extraordinary General Meeting of Shareholders of November 6, 2024, (a) the Plan of the Company's Demerger Agreement of 25/09/2024 was approved through the spin-off of (i) the public construction sector, waste management and PPP projects sector (the "Division A") and its contribution to the wholly owned subsidiary company named "TERNA ENERGEIAKI DIACHEIRISI PAGION S.A." (the "Beneficiary by Absorption") and (ii) the business of the high broadband infrastructure projects undertaking and execution of partnership contracts" (the "Division B") by establishing a new company named “ERGA YPODOMIS EVRYZONIKOTITAS S.A.” (the "Beneficiary by Composition"). The relevant announcement of the GEMI was released on 15 November 2024.

•Acquisition of TERNA ENERGY Group by "Masdar Hellas Hellas SA"

Masdar (Abu Dhabi Future Energy Company) is one of the fastest growing renewable energy companies in the world that promotes the development and implementation of solar, wind, geothermal, battery storage

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

and green hydrogen technologies, targeting a 100GW renewable energy capacity portfolio by 2030, helping to accelerate the energy transition achieve global zero-carbon targets.

•Dividend distribution according to the resolutions of the Annual General Meeting of 20/06/2024

On 20/06/2024, the Annual General Meeting of the Shareholders of TERNA ENERGY S.A. convened, in which the proposal of the Board of Directors for the distribution of profits and reserves in the total amount of EUR 44.879.934,20, i.e. € 0,38 per share, was approved, in accordance with article 162 par. 3 of Law 4548/2018. This amount will be increased by the dividend corresponding to the treasury shares that the Company holds.

•Conclusion of a 12-year bilateral contract with EYATH

TERNA ENERGY Group signed the first ever PPA agreement in Greece, with a duration of 8 years with the option of extension of 4 more years, according to which the Group will supply EYATH with 100% green energy with a capacity of 100 GWh/year. With this transaction, TERNA ENERGY S.A. will ensure a constant selling price for its electricity production, while EYATH will reduce its energy costs by up to 50%, the increase of which in 2022 burdened its financial results, causing the long-time profitable company to make losses for the first time in 25 years. At the same time, EYATH will reduce its carbon footprint to zero by 2025 instead of the target of 2030.

•Inclusion of Terna Energy in the Final List of Selected Participants for E.S.S. (Electricity Storage Stations) of RAAEY

With the decision of 15 February 2024 of RAAEY, TERNA ENERGY ABETE was selected as one of the shortlisted bidders of the second (b) Competitive Bidding Procedure for the granting of investment and operational support to Electricity Storage Stations in accordance with the provisions of article 143F of Law No. 4001/2011, of a capacity of 40 MW and a capacity of 80 MWh. During the third quarter of the year, the special purpose company was established for the implementation of the relevant investment plan.

•Selection of three TERNA ENERGY Investment Plans in the list of the European Network of Transmission System Operators for Electricity (ENTSO-E)

The list of 209 electricity infrastructure projects of the Trans-European Ten-Year Development Plan (TYNDP) 2024 of the European Network of Transmission System Operators for Electricity (ENTSO-E) includes three energy storage investment projects of TERNA ENERGY Group:

The pumped-storage project of Terna Energy in Amfilochia. It is the largest investment in an energy storage project in Greece, with a total installed capacity of 680 MW (megawatts) for generation and 730 MW for pumping. It is an investment of more than EUR 500 million with an annual energy production of approximately 816.00 GWh (gigawatt-hours) and an operational horizon of 2026.

Pumped storage plant of PPC - TERNA Energy at Ladonas. This is a project with an installed capacity of 220 MW for generation and 231 MW for pumping. It is expected to be completed in 2032.

TERNA Energy's pumped storage project "Vrohonera": It consists of two independent projects, "Vrohonera I" (total installed capacity of 424 MW for generation and 377 MW for pumping) and "Vrohonera II" (total installed capacity of 351 MW for generation and 344 MW for pumping).

These projects will play an important part in shaping Europe's electricity system up to 2040.

•Completion of Share Distribution Plan

By the decision of the Board of Directors of "TERNA ENERGY", dated October 21, 2024, it was unanimously decided to increase the share capital of the Company by the amount of Euro Seventy Five Thousand (€ 75.000,00) by issuing two hundred and fifty thousand (250.000) of new ordinary registered shares with voting rights, with a nominal value of thirty euro cents (€ 0,30) each, with capitalization of share premium reserves, and their free distribution to Executive Members of the Board of Directors and senior management of the

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Company, in accordance with the approved Share Distribution Plan due to the achievement of the last target of the Share Distribution Plan.

•Acquisition of shares in BIO PI DI SOLAR EOOD

During July 2024, the Group signed a contract for the acquisition of the shares of BIO PI DI SOLAR EOOD, which is developing the construction and operation of a 129,3 MW photovoltaic power plant in Bulgaria.

•Acquisition of shares of ELLINIKOS ILIOS II S.A. and ELLINIKOS ILIOS III S.A.

On 31 December 2024, the company of the group TERNA ENERGY S.A. acquired 100% of the shares of the companies ELLINIKOS ILIOS II S.A. and ELLINIKOS ILIOS III S.A. These companies are active in the development, construction and operation of photovoltaic power plants and have 39,6 MW of photovoltaic power plants under construction.

C. Events after the end of fiscal year 2024

From 01/01/2025 and until the preparation date of the present report, the following important events occurred:

•Motor Oil - TERNA ENERGY Groups cooperate for the first Offshore Wind Farm in Greece

Motor Oil and TERNA ENERGY Groups proceed with the joint implementation of the first Offshore Wind Farm (OWP) in Greece. In this context, the procedures for the participation of Motor Oil Group, through its subsidiary Motor Oil Renewable Energy (MORE), with a 50% stake in the share capital of "Aeolika Provatas Traianoupolis", a subsidiary of Terna Energy Group, have been completed. "Aeolika Provatas Traianoupolis" has the right to develop a 400 MW pilot wind farm in the sea area south of Alexandroupolis and north of Samothrace. This pioneering landmark project, with a completion horizon of the end of the current decade, will be the first of its kind in Greece, contributing substantially to the success of the implementation of the National Programme for the Development of Offshore Wind Farm (OWP).

Moreover, it will highlight the benefits of Offshore Wind Farm (OWP) to the national and local economy, as well as the harmonious coexistence of CSR with sectors such as shipping and tourism. Through their cooperation for the development of the first Offshore Wind Farm in Greece, Motor Oil and TERNA ENERGY Groups are strengthening their footprint in the domestic production of clean energy and implementing their environmental commitments, while at the same time actively promoting sustainable development and the energy transformation of the country.

•Results of the mandatory public offer of the Company "MASDAR HELLAS S.A." to the shareholders of the Company "TERNA ENERGY S.A." for the acquisition of all their common, registered, voting shares for a price of 20,00 euro per share

Following the completion of the public offer procedure, MASDAR HELLAS S.A. holds a total of 115.519.691 Shares and voting rights of the Company, corresponding to approximately 97,60 % of the total paid-up share capital and voting rights of the Company. Additional Shares that MASDAR HELLAS S.A. may acquire after the expiry of the Acceptance Period until the Completion Date are not included in the above percentage.

D. Prospectives

TERNA ENERGY Group continues its investment plan as the largest green energy Group in the country. Dedication to the execution of the investment plan is expected to further enhance long-term, predictable and recurring revenue streams with the goal of increasing capacity to 6.0 GW by the end of the decade. As noted, following the acquisition by Abu Dhabi Future Energy Company PJSC - Masdar ("Masdar") is expected to play an important role in the development of the MASDAR Group's portfolio in Europe, as it targets a total capacity of 100 GW globally by 2030.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

E. Risks and uncertainties

The Group’s activities expose it to various financial risks such as market risk (including foreign exchange risk, interest rate risk and price volatility risk), credit risk and liquidity risk. The Group, in order to deal with the financial risks and to limit their negative impact on its financial results, monitors the fluctuations of the variables that affect cost and sales and uses the appropriate products, as the case may be.

The main risks and uncertainties related to the Group's operations are as follows:

i.Credit risk

The Group examines its receivables on an on-going basis and incorporates the arising data in its credit control. The majority of the energy segment receivables relates to the broader domestic (including ENEX, DAPEEP and DEDDIE) and foreign Public Sector. Given the nature of its operations, the Group traditionally is not exposed to significant credit risk from trade receivables. In the past, there have been delays in collections from DAPEEP, which have been significantly reduced with the implementation of Law 4254 /14 as well as the extraordinary levy imposed for the fiscal year 2020 to address the side effects of the coronavirus pandemic, on electricity producers from Renewable Energy Sources (RES) power plants, which have been brought into normal or trial operation by 31 December 2015 (Government Gazette 245/09.12.2020). In other transactions with individuals, the Group operates with a view to limiting credit risk and securing its receivables. The credit risk in respect of cash and cash equivalent and other receivables is low, since the parties to the transaction are banks of high-quality capital structure, the State or the entities of the broader Public Sector or strong business groups.

Lastly, Group Management estimates that all the financial assets, for which the necessary impairments have been performed, are of high credit quality.

ii.Foreign exchange risk

Besides Greece, the Group operates in Eastern Europe and, therefore, it may be exposed to foreign exchange risk, potentially arising from the exchange rate of Euro against other currencies. This type of risk may arise only from trade transactions in foreign currency, from financial investments in foreign currency, as well as from net investments in foreign entities. To limit this risk, the Group uses the cash surpluses generated in local currency. During the operational phase, all related costs and revenues are made in local currency, thus excluding any possibility of generating currency exchange differences.To mitigate this risk, the Group's financial management department systematically monitors exchange rate fluctuations and ensures that they do not adversely affect its cash flow.

Regarding the Company’s transactions with foreign entities, such transactions primarily take place with European Groups, where Euro is the settlement currency and, therefore, such transactions are not exposed to foreign exchange risk.

iii.Interest rate risk

The Group’s policy is to minimize its exposure to cash flow interest rate risk with regards to its long-term financing. In this context, long-term loans received by the Group either bear a fixed interest rate or are hedged for almost the entire duration. Thus, 16,55% of the Group's long-term borrowings refer to fixed rate loans59,67% refer to floating rate loans hedged through derivatives whereby future fixed rate payments are exchanged for floating rate receipts, and 23,78% to floating rate loans based on euribor or wibor.

The Group’s total short-term bank loans are in Euro under floating interest rates linked to euribor. Short‐term loans are primarily received as bridge financing during the phase of implementation and construction of the

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Group’s investments (Wind parks). These loans are expected to be repaid within one year, while new short‐term loans are expected to be received to finance the construction of new wind parks.

Therefore, the Group is exposed to interest rate risk arising from short-term debt and the part of long‐term debt that is under floating interest rates. The Group is not exposed to other interest rate risks.

Sensitivity analysis of interest rate risk

In the table below is presented the sensitivity of earnings for the year versus the Group's short-term borrowing and deposits, at a change in the variable part of the interest rate of +20% - 20% (2023: +/- 20% correspondingly).

Changes in interest rates are estimated to fluctuate on a reasonable basis in relation to the recent market conditions.

	2024		2023
Amounts in thousand €	20%	(20)%	20%	(20)%
Results for the year after tax – Group	(3.349)	3.349	(2.263)	2.263
Results for the year after tax – Company	(280)	280	(301)	301

The Group is not exposed to other interest rate risks.

iv.Market risk analysis

The Group is not exposed to market risk for its financial assets, with the exception of the portfolio of listed securities. The Group has not taken specific hedging measures for this risk as any impact is not expected to be significant.

v.Liquidity risk analysis

The Group’s liquidity is considered satisfactory, as apart from the effective cash and cash equivalents, currently operating wind farms generate satisfactory cash flows on an on-going basis. In the year 2024 net cash flows from continuing operating activities amounted to € 139 million versus € 147 million in 2023. The Group manages its liquidity needs by applying cautious cash flow planning, by carefully monitoring the balance of long‐term financial liabilities as well as by systematically managing the payments which take place daily. The liquidity needs are monitored in different time zones, on a daily and weekly basis, as well as based on a moving 30‐day period. The liquidity needs for the next 6 months, and the next year are defined monthly.

The Company maintains cash and cash equivalents in banks, to cover its liquidity needs for periods up to 30 days. The capital for mid‐term liquidity needs is released from the Company’s term deposits.

vi.Other risks and uncertainties

(a) Climate Change Risk and Fluctuations in wind and hydrological data

The Group's core business is closely linked to climate conditions and in this context, management closely monitors developments and assesses the potential impact that climate change may have on the smooth operation of the facilities. From now on, calculation models should incorporate new factors allowing for the occurrence of potential events of force majeure, to examine in greater depth the viability of each projected investment.

Regarding its activity in the energy sector, the Group remains exposed to short-term fluctuations in wind and hydrological data, without affecting the long-term profitability of its projects, as the implementation of its investments is preceded by extensive studies on the long-term behaviour of these factors.

(b) Political evolutions in the Group's area of operation

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

The military conflicts in the wider region of the Group's operations such as Ukraine and Middle East continue, and TERNA ENERGY Group continues to closely monitor the developments which have not had and are not expected to have a direct impact on the Group's figures and performance. As the majority of the A/Ps have a fixed sales price, the significant costs are depreciation of equipment and borrowing costs, which refer to fixed rate loans, the impact of which continues to be insignificant, and this is not expected to change in the foreseeable future.

Finally, due to the dynamic nature of these events, new risks may arise. Considering the current uncertainty about the wider economic climate, the Group's management is trying to assess any indirect consequences on the Group in a timely manner.

F. Alternative Performance Measurement Indicators (“APMI”)

In the context of applying the Guidelines “Alternative Performance Measures” of the European Securities and Markets Authority (ESMA/2015/1415el) which are applied from 3rd of July 2016 in the Alternative Performance Measures Indicators (APMI).

The Group utilizes Alternative Performance Measurement Indicators ("APMI") in its financial, operational and strategic planning decisions, as well as in evaluating and publishing its performance. These APMI serves to better understanding the Group’s financial and operating results as well as its financial position.

Alternative indicators should always be considered in conjunction with the financial results prepared in accordance with IFRSs and in no case should they replace them. The following indicators are used when describing the Group's performance by sector:

EBIΤ (Earnings before Interest and Taxes): It is a ratio by which the Company's Management assesses its operating performance. It is defined as: Turnover, - Cost of sales, - Administrative & distribution expenses, - Research & development expenses, +/- Other Income / (Expenses) and other Gains / (Losses) determinants of EBIT. The other Income / (Expenses) determinants are defined as Other Income (Expenses), not including foreign exchange valuation differences, Impairment / (Recovery of impairment) of assets as presented in Note 34.

EBITDA (Earnings before Interest Taxes Depreciation and Amortization): The ratio is calculated as Earnings before Interest & Tax (EBIT) adding the total depreciation of tangible, intangible assets and rights of use deducting grants depreciations. The greater the indicator is, the more efficient the operation of the Company becomes. The EBITDA is defined as EBIT adding assets depreciation, less grants depreciation.

“Net debt / (Surplus)” is a ratio by which the Company’s Management assesses each time the respective cash position. The ratio is defined as total long-term loan liabilities, short-term loan liabilities, long-term liabilities carried forward, less cash and cash equivalents less restricted deposits related to bank debt.

“Gross Profit Margin” is a ratio by which the Company’s Management assesses the return level and is defined as Gross Profit to Turnover.

"Loan Liabilities to Total Capital in Use" is an indicator that the Management assesses the Group's financial leverage. Loan Liabilities are the total of Short-term Loans, Long-term Loans and Long-term Loans payable the following year. Total Capital Employed is defined as the total of equity, loan liabilities, lease liabilities, grants are reduced by the amount of cash available that is not subject to any restriction or commitment, beyond the commitments associated with the borrowing.

The following tables configures the ratios “EBIT”, “EBITDA”, “Net debt / (Surplus)”, “Gross Profit Margin” and "Loan Liabilities to Total Capital Employed":

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Operating segments	Continued Operations of Electricity from RES	Consolidated total of Discontinued operations	Consolidated total Continued and dicontinued Operations
31st December 2024
Continuing and Discontinued operations
Revenue	347.104	60.521	407.625
Cost of sales	(141.654)	(65.372)	(207.026)
Gross profit from continuing and Discontinued operations	205.450	(4.851)	200.599

Administrative and distribution expenses	(47.439)	(2.045)	(49.484)
Research and development expenses	(6.187)	(1.519)	(7.706)
Other income/(expenses) and other gain/(losses)-ΕΒΙΤ determinants	5.240	(10.321)	(5.081)
Operating results (EBIT) from continuing and Discontinued operations	157.064	(18.736)	138.328

Other income/(expenses) and other gain/(losses)- non-ΕΒΙΤ determinants	(1.164)	407	(757)
Operating results from continuing and Discontinued operations	155.900	(18.329)	137.571
Financial income	1.391	6.875	8.266
Financial expenses	(65.462)	83	(65.379)
Gains/(Losses) from financial instruments measured at fair value	1.189	5	1.194
Revenue from participating interest and other investments	47	−	47
Gains/(losses) from disposals and valuation of participations and other investments	702	−	702
Share of results of assosiates and joint ventures	−	(46)	(46)
Net profit/loss for the period from Discontinued Οperations	−	(22.352)	(22.352)
Profit/Loses before tax from continuing and Discontinued operations	93.767	(33.764)	60.003
Income tax expense	(23.217)	(2.777)	(25.994)
Net profit/(losses) from continuing and Discontinued operations	70.550	(36.541)	34.009

Depreciation	(57.031)	(892)	(57.923)
Grants' amortisation	3.840	−	3.840
EBITDA from continuing and Discontinued operations	210.255	(17.844)	192.411

Long‐term loans	967.118	50.311	1.017.429
Short‐term loans	40.609	−	40.609
Long‐term liabilities carried forward	99.800	14.961	114.761
Cash and cash equivalents	(241.111)	(25.340)	(266.451)
Restricted cash (Note 19)	(70.827)	(5.791)	(76.618)
Net debt/(surplus)	795.589	34.141	829.730

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Operating segments		Continued Operations of Electricity from RES		Consolidated total of Discontinued operations		Consolidated total Continued and dicontinued Operations
31st December 2023
Continuing and Discontinued operations
Revenue		252.216		75.615		327.831
Cost of sales		(102.603)		(66.184)		(168.787)
Gross profit from Continuing and Discontinued operations		149.613		9.431		159.044

Administrative and distribution expenses		(31.113)		(2.778)		(33.891)
Research and development expenses		(5.371)		(1.913)		(7.284)
Other income/(expenses) and other gain/(losses)-ΕΒΙΤ determinants		12.160		(327)		11.833
Operating results (EBIT) from continuing and Discontinued operations		125.289		4.413		129.702

Other income/(expenses) and other gain/(losses)- non-ΕΒΙΤ determinants		(1.294)		−		(1.294)
Operating results from continuing and Discontinued operations		123.995		4.413		128.408
Financial income		824		8.218		9.042
Financial expenses		(49.093)		(5.840)		(54.933)
Gains/(Losses) from financial instruments measured at fair value		(1.912)		45		(1.867)
Gains/(losses) from disposals and valuation of participations and other investments		507		−		507
Share of results of assosiates and joint ventures		(33)		(51)		(84)
Profit/Loses before tax from continuing and Discontinued operations		74.288		6.785		81.073
Income tax expense		(17.223)		(1.764)		(18.987)
Net profit/(losses) from continuing and Discontinued operations		57.065		5.021		62.086

Depreciation		(52.463)		(595)		(53.058)
Grants' amortisation		4.971		−		4.971
EBITDA from continuing and Discontinued operations		172.781		5.008		177.789

31st December 2023
Long‐term loans		987.387		66.877		1.054.264
Long‐term liabilities carried forward		93.219		19.629		112.848
Cash and cash equivalents		(224.639)		(23.388)		(248.027)
Restricted cash (Note 19)		(68.663)		(5.791)		(74.454)
Net debt/(surplus)		787.304		57.327		844.631
Operating segments	Continued Operations of Electricity from RES		Consolidated total of Discontinued operations		Consolidated total Continued and dicontinued Opreations
31st December 2024
Revenue	347.104		60.521		407.625
Cost of sales	(141.654)		(65.372)		(207.026)

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Gross profit	205.450	(4.851)	200.599
Gross profit margin	59,19%	(8,02)%	49,21%

Operating segments	Continued Operations of Electricity from RES	Consolidated total of Discontinued operations	Consolidated total Continued and dicontinued Opreations
31st December 2023
Revenue	252.216	75.615	327.831
Cost of sales	(102.603)	(66.184)	(168.787)
Gross profit	149.613	9.431	159.044
Gross profit margin	59,32%	12,47%	48,51%

The ratio “Loan Liabilities to Total Capital Employed” at the end of 2024 and 2023 is as follows:

Amounts in thousands €	31/12/2024	31/12/2023
Short‐term loans	40.609	−
Long‐term loans	967.118	1.054.264
Long‐term liabilities carried forward	99.800	112.848
Loan liabilities	1.107.527	1.167.112
Total equity	489.036	506.206
Loan liabilities	1.107.527	1.167.112
Lease liabilities (Long-term and Short-term portion)	35.351	30.826
Grants	159.020	162.812
Subtotal	1.790.934	1.866.956
Less:
Cash and cash equivalents	241.111	248.027
Restricted cash related to loans (Note 19)	70.827	74.455
Subtotal	311.938	322.482
Total employed capital	1.478.996	1.544.474
Loan Liabilities / Total employed capital	75%	76%

G. Annual Non-Financial Statement 2024

1.Introduction

This Non-Financial statement covers the fiscal year ended on December 31st, 2024. Having taken into account the provisions of section 7 "Report (Statement) of Non-Financial Information" of Law 62784/2017 of the Ministry of Economy and Development, in accordance with the provisions of Law 4548/2018 (articles 151 & 154), the report contains information on all the activities of TERNA ENERGY Group for the following topics:

▪Supply chain issues

▪Anti-corruption and anti-bribery

▪Respect for human rights

▪Labor issues

▪Social issues

▪Environmental issues

The statement presents relevant information on the required disclosures of Article 8 of the Taxonomy Regulation, as specified in Article 10 of the Delegated Regulation (EU) 2021/2178. The statement has been prepared taking into account the Global Reporting Initiative (GRI) international standards, the standards introduced by the Sustainability Accounting Standards Board (SASB) and the Athens Stock Exchange ESG

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Reporting Guide (ATHEX). The statement presents information on the main risks related to the Group's activities, due diligence policies as well as other relevant policies applied. In addition, for a better understanding of the Group's performance, the qualitative and quantitative results of these policies are presented, and relevant financial and non-financial performance indicators are listed.

The structure of this report is as follows:

▪The Group's approach to Sustainable Development

▪Corporate Governance and the Group's Basic Operating Principles

▪Environmental issues

▪Sustainable Supply Chain

▪Social and labor issues

▪Taxonomy Report

TERNA ENERGY GROUP

For over twenty years, TERNA ENERGY Group has been a leading Greek vertically integrated Group in the Renewable Energy Sources (RES) sector. It boasts the largest and most diverse project portfolio in Greece, engaging in the development, construction, financing, and operation of RES projects. TERNA ENERGY shares are listed on the Athens Stock Exchange (FTSE / Athex Large Cap).

TERNA ENERGY Group is active in renewable energy projects, from development to energy production, in a range of technologies that include the construction and operation of wind farms, hydroelectric projects, pumped storage projects, hybrid power plants and photovoltaic parks. In 2024 the Group operated in Greece, Bulgaria and Poland.

TERNA ENERGY is at the forefront of Greece's initiative to become a prominent green energy center in Southeast Europe. As the largest producer and investor in clean energy across the region, the Group has a total project capacity—encompassing operational, under-construction, and ready-to-build projects—totaling 2.5GW in 2024. Including projects in various stages of maturity, the Group's portfolio exceeds 11 GW.

Overall Business Strategy

The Group's business activity is characterized by a solid financial structure, deep specialization and expertise, full implementation of quality assurance procedures, and extensive understanding of the international financial and business landscape. Its business model is based both on responsible planning and effective implementation of every project it undertakes. Moreover, the Group ensures sufficient capital and liquidity throughout each project phase by adhering to successful and responsible business practices, while ensuring its business continuity and sustainable growth.

Design and implementation of new projects

TERNA ENERGY Group has initiated a €5,5 billion investment plan focused on clean energy, the environment and the circular economy. The Group is also enhancing its involvement in innovative projects and developing various technology projects, such as hydroelectric, storage, and hybrid systems, in Greece. These projects are at different stages of maturity and are expected to gradually commence construction in the near future.

Since the beginning of the year, TERNA ENERGY Group has continued to expand its portfolio. Currently, the construction of new projects across various technologies (primarily photovoltaic, but also wind and storage projects) is gradually commencing both in Greece and abroad. These projects are expected to become operational progressively from the end of 2025, representing a total investment of €370 million. Meanwhile, the construction of the Amfilochia pumped-storage project is progressing according to plan.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

2.The Group’s approach to Sustainable Development

ATHEX Metric C-G4: Sustainability Policy

The Group’s unwavering commitment to Sustainable Development principles serves as a cornerstone for its business operations. Central to this commitment is the Group's Sustainable Development Policy which prioritizes stakeholders and emphasizes systematic assessment of the material impacts of its activities on the economy, society, and the environment.

The Sustainable Development Policy aims to amplify the positive contribution of the Group's activities while mitigating the negative effects. By implementing a range of best practices, targeted initiatives, and sustainable partnerships, TERNA ENERGY Group works towards its ultimate goal of creating long-term value for both stakeholders and society as a whole.

The Group's business strategy is intricately aligned with the material topics and needs identified by its stakeholder groups, guiding the implementation of targeted actions for environmental and societal impact in accordance with the United Nations' 17 Sustainable Development Goals (SDGs). As part of the Group’s Sustainable Development Policy, corporate responsibility is aligned with the ESG (Environmental-Social-Governance) criteria and principles applied across four (4) activity axes:

▪Environmental Protection

▪Human Value Promotion

▪Strengthening our Social Footprint

▪Shaping a Responsible Market

These focus areas form the basis for the Group’s sustainability goals and targets, which are meticulously defined and assessed annually to ensure their continued relevance and to make adjustments as necessary. To support these objectives, the Group develops and implements robust management systems, policies, and procedures, utilizing Key Performance Indicators (KPIs) and metrics. Additionally, efficient action plans and programs are adopted to effectively monitor and achieve sustainable development goals and targets.

To enhance transparency and facilitate stakeholder engagement, the Group's performance on ESG topics is published in the annual Sustainable Development Report and the current Statement. In 2024, during the development of its annual sustainability report, TERNA ENERGY conducted a 'double materiality' assessment to identify the sustainability issues that are most relevant to its business and stakeholders. This effort aligns with the Group's commitment to transparency, accountability, and sustainable business practices by identifying its material impacts, risks, and opportunities related to sustainability topics.

The double materiality approach helps the organization meet regulatory requirements while boosting transparency, stakeholder engagement, and sustainable business practices. It involves assessing how business operations impact the economy, society, and environment, as well as how sustainability issues affect the company's financial performance and strategies.

More specifically, TERNA ENERGY Group has adopted a 4-step approach for performing its Double Materiality Assessment in line with European Sustainability Reporting Standards (ESRS) provisions. It is a structured process designed to evaluate the material impacts and dependencies of their business activities on environmental, social, and governance (ESG) factors. While the specific details of each phase may vary, the general approach typically involves the following steps:

▪Understanding: This phase involves identifying relevant ESG issues that could impact the organization or be impacted by its operations. This includes a deep understanding of its operation, business relationships and value chain, as well as gathering input from a variety of stakeholders such as employees, investors, customers, suppliers, and local communities.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

▪Identification: This phase involves identifying relevant impacts, risks and opportunities associated with the potentially significant ESG issues that have been identified during the previous phase.

▪Prioritization: In this step, the identified issues are evaluated and prioritized based on their score that reflects their significance to the company and its stakeholders. This is accomplished through stakeholder engagement both for impact and financial materiality assessments.

▪Determination: The material IROs arising from the assessment phased result in a list of material issues. These material ESG topics are reviewed and validated by the organization’s leadership and key stakeholders to ensure alignment with the company’s strategic objectives and stakeholder expectations.

3.Corporate Governance and the Group's Basic Operating Principles

ΑΤΗΕΧ Metric C-G2: Sustainability Oversight

Corporate Governance comprises a framework of established rules and business practices that the Group applies to ensure business continuity and the creation of long-term value for its shareholders. This commitment to responsible governance and ethical business conduct is encapsulated in the Corporate Governance Code, set forth by the Management.

The Board of Directors (BoD) serves as the Group’s highest management body. Its members are elected by the General Meeting of Shareholders with its primary mission being the establishment of the Group’s core guidelines and the development of its business strategy. Additionally, the BoD is entrusted with overseeing procedures that ensure effective business operation, implementation of the Group’s core principles and the expression of the administrative philosophy of the Group. Moreover, it is also responsible for decision-making across all corporate matters, except those reserved for the General Assembly.

The BoD is dedicated to safeguarding and advancing the long-term interests of shareholders by implementing practices and methods that build the company’s credibility within the financial and business community and the broader social environment, while fostering mutual respect among all stakeholders. To enhance its effectiveness and establish a responsible business model, the BoD is supported by specialized Committees that play an advisory role with significant influence over decision-making:

•Audit Committee

•Nominations Committee

•Remuneration Committee

•Strategic Planning Committee

•Investment Committee

•ESG Committee

Aiming to enhance oversight of the Group’s Sustainable Development issues, the ESG committee convenes at least 4 times a year or whenever required, discussing the Group's ESG performance and goals.

3.1Due Diligence and other policies

3.1.1Code of Conduct

Metric ΑΤΗΕΧ A-G2: Business ethics violations

Metric ΑΤΗΕΧ C-G5: Business ethics policy

The

Code of Ethics and Conduct

incorporates the Group's core principles, beliefs, corporate culture, business ethics and voluntary ethical commitments, which shape the operating model across the Group's activities. By establishing a transparent and agreed-upon framework of operations and behavior applicable to all employees, customers, partners, subcontractors, suppliers, and the local community, the Code strengthens the business ethics principles that govern the operations of the Group while promoting a robust corporate culture.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

The Code applies to all subsidiaries and all different areas and countries of the Group's operational activity and is also considered in the Partnerships and Joint Ventures in which the Group participates. While the Code outlines the minimum requirements for human capital procedures—such as employee and associate health and safety—and governance mechanisms, including the prevention of bribery and ensuring healthy competition, these commitments are further supported by additional policies, procedures, and internal documents that are equally binding.

The Code aligns with the overarching principles of international regulations, conventions, and standards. To ensure compliance, the Group undergoes regular audits by accredited bodies, which provide the necessary certifications. The Code of Ethics and Conduct serves as a comprehensive framework addressing labor and human rights issues. Specific aspects, such as combating workplace violence and preventing human rights violations, are further detailed through the Group's individual policies and internal procedures.

The Group, guided by the Code of Ethics and Conduct, places a strong emphasis on integrity, transparency, and professionalism, while demonstrating zero tolerance for issues of corruption, bribery and generally illegal or unlawful and unethical behavior. In compliance with the requirements of Law no. 4990/2022 transposing Directive (EU) 2019/1937 of the European Parliament and of the Council, the Group has adopted and implemented a "

Whistleblowing Policy

" and has appointed an Officer responsible for receiving and monitoring reports.

Any employee may report or raise a concern regarding any issue related to the implementation of the Code of Ethics and Conduct, either by name or anonymously through the following channels of reaction:

▪Send an email to compliance@terna-energy.com.

▪Using the online platform https://ternaenergy.integrityline.com/frontpage.

▪Sending a letter to the address: “TERNA ENERGY S.A.”, 85 Mesogeion Ave., 115 26 Athens, attention of the “Responsible for the receipt and monitoring of reports “of the Company, marked as “Confidential”.

▪By phone (Monday to Friday: 9:00 - 17:00) at +30 210 6968300, mentioning “Communication with the Responsible for the receipt and monitoring of reports”.

▪Personal meeting with the Responsible for the receipt and monitoring of reports, during the Company's operating hours (Monday to Friday: 9:00 - 17:00), within a reasonable time-frame from the submission of the relevant request for a personal meeting.

3.1.2Compliance, Corruption and Bribery Control Policy

The central axis of the Group’s responsible business conduct, as well as an integral part of its business strategy, is regulatory compliance and control of corruption and bribery. The objectives of the Group for the efficient and effective management of these issues are reflected in the Compliance, Corruption and Bribery Control Policy. The key highlights of the policy are outlined below:

▪Adherence to all requirements set forth by the Group's regulatory framework, as outlined in the established Management System.

▪Compliance with legal standards concerning corruption and bribery relevant to the Group's activities.

▪Strict adherence to the legal framework governing the issues of money laundering and terrorist financing.

▪Raising employee awareness about regulatory compliance, corruption, and bribery, as well as the Code of Ethics and Conduct, to foster a robust culture of compliance within the Group, adhering to the Management System's policies and procedures.

▪Identification and management of regulatory compliance and corruption-bribery risks. This includes identifying and assessing the risks associated with the regulatory corruption and bribery framework to take appropriate measures to reduce them.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

▪Communication of compliance obligations, including risks, management procedures, non-compliances as well as improvement actions and the results of controls / audits to all parties involved.

▪Establishment of appropriate control mechanisms and preventive measures to detect and prevent issues such as bribery, corruption, money laundering, bribery financing, conflicts of interest, and general regulatory compliance matters.

An indicative set of the measures and mechanisms that have been established to effectively and efficiently uphold the corporate governance framework and combat incidents of corruption are listed below:

▪Clear definition of the principles related to these issues, that govern the Group through the Code of Ethics and Conduct and the applicable Policies.

▪Clear definition of responsibilities through the Internal Rules of Operation.

▪Different levels of approval are clearly defined in the Internal Rules of Operation and in the decisions of the Board of Directors.

▪Application of the four-eye principle and double signatures in the Group's procedures.

▪Continuous training and awareness of staff.

▪Due diligence actions in the selection of partners, suppliers, staff, subcontractors and customers.

▪Scheduled and extraordinary audits by the Internal Audit Unit.

▪Scheduled and extraordinary internal audits by the Head of Regulatory Compliance.

To achieve the above objectives and further strengthen the responsible governance system, the Group is committed to the following:

▪Ongoing training and staff awareness.

▪Process to handle, address and report complaints.

▪Ensuring the independence of the Regulatory Officer.

▪Establishing procedures for managing conflicts of interest.

▪Continuously enhancing the efficiency of the Management.

▪Operating a mechanism to assess incidents of non-compliance with obligations.

▪Developing and implementing specific policies on regulatory compliance, corruption, and bribery issues, including policies on unfair competition, travel and accommodation, gifts, sponsorships, and donations.

Moreover, TERNA ENERGY Group is implementing a Certified Anti-Bribery Management System based on the requirements of ISO 37001:2016, and additionally applies a Compliance Management System, based on the international standard ISO 37301:2021 which has been certified by an accredited Certification Body.

3.1.3Policy on the protection of Personal Data

Μetric ATHEX C-G6 Data security policy

Effective management of information and safeguarding personal data for all individuals involved in the Group's activities are critical to ensuring regulatory compliance. This commitment is emphasized in the Code of Ethics and Conduct, as well as the principles of business ethics that underpin all the Group's operations and partnerships. To uphold these standards, an Information Security Management System Manager has been appointed who closely collaborates with the Group's Chief Information Systems Security Officer (CISO) and the Personal Data Protection Unit to oversee compliance with applicable laws and regulations.

To ensure a high level of security that matches the criticality and confidentiality of data and information exchanges, a personal data protection policy is in place. Additionally, an Information Security Management System has been established and certified according to the international standard ISO/IEC 27001:2013. The necessary changes and revisions to the Information Security Management System are in progress, in order to complete the transition to the new edition ISO / IEC 27001:2022 in early 2025.

The Group adheres to relevant European and national legal frameworks and has designated a Data Protection Officer (DPO), who reports directly to the Board of Directors. Appropriate organizational and technical

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

measures are implemented to protect personal data processed by the Group. Entities processing information on behalf of the Group are also required to comply with these measures.

These protective measures include policies and procedures addressing the rights of data subjects and the management of data breach incidents.

3.2Major Risks & Risk Management

TERNA ENERGY Group places significant emphasis on combating corruption, recognizing its potential to adversely affect not only the Group itself but also society, the economy, and the environment. To effectively address potential issues arising from its operations, the Group has adopted a certified Anti-Corruption and Anti-Bribery Management System in accordance with the ISO 37001 standard. This system enables systematic identification, analysis, and assessment of corruption and fraud risks.

The Group's strategic priorities include increasing installed capacity, reinforcing its leadership position in Greece, expanding its international presence, diversifying into various technologies, and leveraging its capabilities within the renewable energy value chain. Recognizing that effective Risk Management is crucial for informed decision-making and continuous improvement, the Group has developed a comprehensive Risk Management System according to the requirements of the standard ISO 31000:2018 which has been attested by a competent certification body.

This system aids management in making strategic decisions by identifying, assessing, communicating, and addressing corporate risks. It establishes strategies for monitoring and responding to these risks, while also identifying both threats and opportunities that may arise.

The Group through its

Risk Management Policy

is committed to the following :

▪Implement preventive actions in Risk Management across all operations using transparent and systematic processes.

▪Effectively identify, assess, and manage emerging risks using unified internal consultation methods, control tools, indicators, and reports.

▪Ensure all corporate activities comply with legal frameworks, internal procedures, stakeholder requirements, the Company's Code of Business Ethics, and international best practices.

▪Set minimum tolerance thresholds for risk assessment levels and implement corrective actions when these thresholds are exceeded.

▪Promote systematic monitoring of the Risk Management Process and review its outcomes by assigning specific roles and responsibilities during implementation.

Ensuring Business Continuity

Maintaining business continuity and managing incidents are high-priority issues for the TERNA ENERGY Group to ensure its sustainability and long-term success. Through its Business Continuity Policy, the top management of the Group identifies risks that could disrupt the Group’s operations and allocates necessary resources to implement the Business Continuity Management System, in accordance with the international standard ISO 22301:2019.

This ensures the continuity of critical functions following an emergency or disruption and facilitates a return to acceptable operational levels as swiftly as possible. By adhering to the business continuity policy, procedures, and relevant plans, the implementation of the Business Continuity Management System aims to safeguard personnel health and safety, minimize the impact of disruptions on stakeholders, and establish systematic approaches for planning and assessing the company's business continuity needs.

3.3Non-Financial performance indicators

TERNA ENERGY Group is certified according to the ISO 37001 anti-bribery standard for all its activities.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

GRI 205-3: Confirmed incidents of corruption and actions taken

In 2024, the Group did not report any confirmed cases of corruption, either through complaints or through audits carried out by the Group.

GRI 419-1: Non-compliance with socio-economic laws and regulations

During 2024, no fines and / or non-monetary sanctions for non-compliance with laws and / or regulations in the social and economic sector, were inflicted to the Group.

4.Environmental issues

4.1Due Diligence and other policies

4.1.1Environmental management and compliance

TERNA ENERGY Group operates with a high sense of environmental responsibility, consistently adapting its business practices to support environmental protection and the sustainable management of natural resources. By adhering to environmental legislation and implementing sustainable practices, the Group endeavors to minimize its environmental impact. The environmental principles guiding the Group's business decisions are aligned with the European Green Deal Directives and the National Climate Law, ensuring that its business decisions contribute positively to environmental preservation.

The Group's comprehensive environmental policy provides clear guidelines for all subsidiaries and activities, promoting best practices to protect and sustain the natural environment. Key components of the Group's approach include:

▪Implementation of an Environmental Management System according to ISO 14001:2015

▪Implementation of the Eco-Management and Audit Scheme System (EMAS)

▪Mitigation of the climate change impacts

▪Protection and conservation of biodiversity

▪Responsible management of solid and liquid waste

▪Responsible water management

To maintain environmental compliance across all operations, TERNA ENERGY conducts thorough internal and external environmental audits annually and at other regular intervals. These audits aim to verify compliance with legislation, protocols, working practices, and the requirements of international standards. Internal environmental audits are performed by the QHSE Department, while external audits are conducted by accredited Certification Bodies and other authorities.

In support of these efforts, a Management Systems Policy has been established to minimize the environmental impact of the Group’s activities, reduce energy consumption and greenhouse gas emissions from its buildings and facilities and foster sustainable development.

TERNA ENERGY Group is registered in the European Union's EMAS Register, under registration number EL-000119.

4.2Risk Management

4.2.1Tackling Climate Change

Μetric ATHEX A-E2: Risks and opportunities from climate change

With a sense of responsibility towards the environment and society, the Group recognizes the significant role it plays in addressing climate change. By focusing on energy production from renewable energy sources (RES), TERNA ENERGY Group seeks to significantly reduce its environmental impact, contribute to a sustainable future, and support global efforts to combat climate change.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

The Group is steadfast in its commitment to reducing its carbon footprint, implementing strategic initiatives that align with global sustainability goals and demonstrate a profound responsibility towards climate action. To achieve a GHG emissions reduction by 2025, several key actions have been implemented.

▪Implementation of a strategy to reduce energy consumption and greenhouse gas emissions in its buildings and facilities.

▪Use of 100% green electricity in all Group's facilities in Greece and abroad from 2021 onwards, and therefore zero indirect greenhouse gas emissions (Scope 2 market-based) related to all Group’s facilities.

▪Continuous assessment of risks and opportunities related to climate change, carried out within our Environmental Management System, and alignment with TCFD recommendations.

▪Acceleration of investment plans in the field of energy storage, with the aim of contributing decisively to maximizing the penetration of RES and to the achievement of the Greek national energy and climate goals.

▪4.2.2Protection and conservation of Biodiversity

▪Μetric ATHEX A-E5: Biodiversity sensitive areas

Biodiversity conservation is a key focus area of TERNA ENERGY Group's approach to environmental issues, reflecting its commitment to ensure the resilience of ecosystems that support the planet's health and sustainability. In managing the impacts on biodiversity resulting from the Group's activities, TERNA ENERGY Group employs best practices and advanced technologies to minimize negative effects and create positive outcomes for natural ecosystems in or near its operational areas. The Group implements the following measures:

▪Thorough site investigations during the planning phase of projects and necessary infrastructure to identify special requirements or restrictions due to national and European regulations (such as the Habitat Directive 92/43/EEC) and to determine if projects are located within protected areas like the Natura 2000 network or other regions with land use limitations.

▪Preparation of Environmental Impact Assessments (EIA) and other specific studies in compliance with the relevant international (when required) and national legal frameworks.

▪Implementation of a certified Environmental Management System (EMS) and provision of specialized training.

The EMS has been developed and communicated to all stakeholders in the supply chain, including employees, partners, suppliers, and subcontractors. Training sessions are organized for the Group's employees and subcontractors.

▪Development of long-term monitoring programs to assess the interaction between wildlife (including birds) and the Group's facilities, in accordance with Environmental Terms Approval Decisions (ETADs) and beyond.

▪Installation of avifauna protection systems at wind farms, as stipulated by approved Environmental Terms, utilizing automated bird identification software and high-definition cameras. Since 2021, bird protection systems have been operational in wind farms located in Crete, Evros and Evia.

During the construction of the Amfilochia pumped-storage project, audits are carried out during vegetation clearing and excavation of the surface soil, as part of environmental monitoring and compliance with environmental permits. Additionally, the area within a radius of at least 100 meters around the intervention point is investigated to identify wildlife species (mammals, birds, reptiles, amphibians, fish) that may be at risk from the activity, so that, if necessary, they can be relocated to a safer location. Furthermore, an ornithologist is employed to conduct monthly field research and prepare relevant reports.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

4.2.3Responsible waste management

Μetric ATHEX A-E3: Waste Management

TERNA ENERGY Group is committed to responsible waste management practices across its operations and those of its suppliers and partners, both domestically and internationally. Misaligning with these practices, can lead to adverse effects at multiple levels: locally, it can result in environmental contamination and a decline in residents' quality of life; nationally, it can contribute to the degradation of natural ecosystems and exacerbate solid and liquid waste management challenges. Additionally, poor waste management can disrupt the Group's operations, potentially leading to sanctions or operational disruptions due to uncontrolled waste production or disposal methods.

To mitigate these risks, the Group actively invests in Circular Economy principles, emphasizing reuse and recycling. It rigorously adheres to the standards set by its certified environmental management system, conducting both internal and external audits to identify areas for improvement. This proactive approach enables the Group to implement preventive and corrective measures effectively, ensuring sustainable waste management practices are maintained.

4.3Non-Financial performance indicators

To ensure environmental compliance, in 2024, more than 60 internal and external audits were carried out at all the Group's facilities.

SASB IF-EU-000.D: Total electricity generation

The Group, as one of the largest Greek producers of energy from RES (2024), produced 3,248,360 MWh of clean energy and prevented the release of 1,318,572 tnCO2eq into the atmosphere.

GRI 304-2 Significant impacts of activities, products and services on biodiversity

During 2024, there were no incidents or complaints from regulators, environmental inspectors, NGOs and the local community regarding the violation of environmental conditions related to the protection of biodiversity in the Group's operations.

GRI 307-1 Non-compliance with environmental laws and regulations

During 2024, no fines or other sanctions were imposed on the Group in relation to the violation of environmental laws and regulations.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Environmental data from the Group's activity for the production of electricity1

GRI 302-1: Energy consumption within the organization

ATHEX Metric C-E3: Energy consumption and production

ATHEX C-E3: Energy consumption within the body
GRI 302-1: Energy consumption within the body	2024	2023
Fuel consumption within the Group from non-renewable sources (in MJ)	6,419,424.92	5,812,486.69
Electricity consumption from renewable sources (in MJ)	34,753,444.31	25,769,952
Total energy consumption within the Group (in MJ)	120,572,204.86	109,740,154.91
Total energy consumption within the Group (in MWh)	33,492.28	30,483.39
Percentage of electricity consumed (in MWh)	29.0%	23.5%
Percentage of energy consumed from renewable sources (in MWh)	95%	95%

1 The data relate to all operating power generation facilities controlled by the Group in the countries: Greece, Bulgaria, Poland.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

ATHEX Metric C-E1: Direct emissions (Scope 1)

GRI 305-1: Direct greenhouse gas emissions (Scope 1)

ATHEX Metric C-E2: Indirect emissions (Scope 2)

GRI 305-2: Energy-related indirect greenhouse gas emissions (Scope 2)

SASB topic: Greenhouse gas emissions and energy resource management

ATHEX C-E1 Direct emissions (Scope 1) GRI 305-1: Direct emissions of greenhouse gases (Scope 1	2024	2023
Total direct greenhouse gas emissions (in tCO₂e)	445.04	381.5
Biogenic CO₂ emissions (in tCO₂e)	5,130.2	4,367.4
ATHEX C-E2 Indirect emissions (Scope 2) GRI 305-2: Energy-related indirect greenhouse gas emissions (Scope 2)	2024	2023
Location-based emissions (in tCO₂e)	2,469.5	2,679.05
Market-based emissions (in tCO₂e)1	0	0
Which gases have been included in the calculation of indirect emissions (e.g. CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃, or all)?	ALL	ALL
SASB (IF-WM-120a.1): Emissions of gaseous pollutants	2024	2023
Emissions of NOₓ (including NO and NO₂ and excluding N₂O) (in t)	1.79	2.40
SOₓ emissions (including SO₂ and SO₃) (in t)	0.54	1.36
Emissions of non-methane organic compounds (VOCs) (in t)	N/A	N/A
Emissions of hazardous air pollutants (HAPs) (in t)	N/A	N/A

1 It should be noted that the Group has completed the required procedure for the issuance of Guarantees of Origin for electricity from renewable sources, and the issuance of certificates by the competent authority (Renewable Energy Sources Operator & Guarantees of Origin - DAPEEP) is expected shortly.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

The greenhouse gas emissions included in the above table relate to the Group's operating activities in Greece, Bulgaria and Poland.

The methodology followed for the quantification and compilation of GHG emissions was based on the ISO 14064-1:2018 standards and the Greenhouse Gas Protocol. TERNA ENERGY does not maintain operational control of the Waste Management Facility of the Regional Unit of Epirus nor of Peloponnese Regional Unit and therefore its energy consumption and GHG emissions of these facilities are not included.

GRI 306-3: Waste generated

GRI 306-4: Waste diverted from disposal

GRI 306-5: Waste directed to disposal

GRI 306-3: Waste generated	Unit	2024			2023
Hazardous waste		Waste generated	Waste diverted from disposal	Waste not available for recovery	Waste generated	Waste diverted from disposal	Waste not available for recovery
Contaminated packaging - 15 01 10*	t	7.66	7.66	0.00	6.117	6.117	0.00
Contaminated absorbents - 15 02 02*	t	16.32	16.32	0.00	15.634	15.634	0.00
Lubricants - 13 02 05*	t	13.21	13.21	0.00	18.218	18.218	0.00
Batteries - 16 06 01*	t	0.54	0.54	0.00	0.033	0.033	0.00
Oil filters - 16 01 07*	t	4.14	4.14	0.00	5.056	5.056	0.00
Oil waste - 13 08 99*	t	0.95	0.95	0.00	1.004	1.004	0.00
Antifreeze fluids - 16 01 14*	t	3.80	3.80	0.00	0.020	0.020	0.00
Oily water from oil/water separators - 13 05 07*	t	0.00	-	0.00	20.000	20.000	0.00
Fluorescent lamps - 20 01 21*	t	0.19	0.19	0.00	0.020	0.020	0.00
Non-chlorinated hydraulic oils - 13 01 10*	t	0.00	-	0.00	0.350	0.350	0.00
Other engine oils and lubricants - 13 02 08*	t	1.23	1.23	0.00	0.000	0.000	0.00
Discarded equipment containing hazardous components - 16 02 13*	t	0.004	0.004	0.00	0.010	0.010	0.00
Batteries and accumulators included in 16 06 01, 16 06 02 or 16 06 03 and mixed batteries and accumulators containing such batteries - 20 01 33*	t	0.00	0.00	0.00	0.042	0.042	0.00
Total	t	48.04	48.04	0.00	66.50	66.50	0.00
Information necessary to understand the data and how the data have been collected		The figures for 2024 include: -Facilities (Sites & Offices) in operation in the countries: Greece, Bulgaria and Poland.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

		2024			2023
Non-hazardous waste		Waste generated	Waste diverted from disposal	Waste not available for recovery	Waste generated	Waste diverted from disposal	Waste not available for recovery
Municipal Waste[1]	t	56.44	0.00	56.44	165.11	0.00	165.11
End-of-life vehicles - wastes not otherwise specified - 16 01 99	t	0.06	0.06	0.00	0.19	0.19	0.00
Components (TCS vehicles) not otherwise specified - 16 01 22	t	0.48	0.48	0.00	2.49	2.49	0.00
Absorbent materials, filter materials, wiping cloths and protective clothing other than those mentioned in 15 02 02 - 15 02 03	t	3.27	3.27	0.00	3.23	3.23	0.00
Discarded equipment other than those mentioned in 16 02 09 to 16 02 13 - 16 02 14 - 16 02 14	t	0.10	0.10	0.00	0.025	0.025	0.00
Plastic packaging - 15 01 02	t	0.10	0.10	0.00	0.02	0.02	0.00
Paper and cardboard packaging - 15 01 01	t	0.04	0.04	0.00	0.00	0.00	0.00
Iron and steel - 17 04 05	t	1.20	1.20	0.00	0.00	0.00	0.00
Discarded electrical and electronic equipment other than those mentioned in 20 01 21, 20 01 23 and 20 01 35 - 20 01 36	t	0.31	0.31	0.00	0.00	0.00	0.00
Total	t	61.98	5.54	56.44	171.07	5.96	165.11
Information necessary to understand the data and how the data have been collected		The figures for 2024 include: -Facilities (Sites & Offices) in operation in the countries: Greece, Bulgaria and Poland.

Municipal waste is waste at the Eleoussa hydropower plant which is carried by the river and retained in the diversion grates of the hydropower plant. No periodic cleaning is carried out except when there is an increased concentration.

*Hazardous waste according to the European Waste List

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

GRI 306-4: Waste diverted from disposal	Unit	2024			2023
Hazardous waste		Onsite	Offsite	Total	Onsite	Offsite	Total
Preparation for reuse	t	0.00	0.00	0.00	0.00	0.00	0.00
Recycling	t	0.00	0.00	0.00	0.00	0.00	0.00
Other recovery procedures	t	0.00	48.04	48.04	0.00	66.50	66.50
Total	t	0.00	48.04	48.04	0.00	66.50	66.50
Non-hazardous waste		Onsite	Offsite	Total	Onsite	Offsite	Total
Preparation for reuse	t	0.00	0.00	0.00	0.00	0.00	0.00
Recycling	t	0.00	2.11	2.11	0.00	5.96	5.96
Other recovery procedures	t	0.00	3.43	3.43	0.00	0.00	0.00
Total	t	0.00	5.54	5.54	0.00	5.96	5.96

GRI 306-5: Waste directed to disposal	Unit	2024			2023
Hazardous waste		Onsite	Offsite	Total	Onsite	Offsite	Total
Incineration (with energy recovery)	t	0.00	0.00	0.00	0.00	0.00	0.00
Incineration (without energy recovery)	t	0.00	0.00	0.00	0.00	0.00	0.00
Landfill	t	0.00	0.00	0.00	0.00	0.00	0.00
Total	t	0.00	0.00	0.00	0.00	0.00	0.00
Non-hazardous waste		Onsite	Offsite	Total	Onsite	Offsite	Total
Incineration (with energy recovery)	t	0.00	0.00	0.00	0.00	0.00	0.00
Incineration (without energy recovery)	t	0.00	0.00	0.00	0.00	0.00	0.00
Landfill	t	0.00	56.44	56.44	0.00	165.11	165.11
Other recovery procedures	t	0.00	0.00	0.00	0.00	0.00	0.00
Total	t	0.00	56.44	56.44	0.00	165.11	165.11

* Based on the European Waste List

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

ATHEX Metric Α-E3: Waste management

ATHEX A-E3: Waste Management
Percentage of waste by type of treatment	Unit	2024	2023
Total amount of waste generated	t	110.03	237.57
Recycling	%	2%	31%
Preparation for reuse	%	47%	0%
Landfill	%	0%	69%
Incineration (with energy recovery)	%	51%	0%
Incineration (without energy recovery)	%	0%	0%

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

GRI 303-3: Water withdrawal

GRI 303-4: Water discharge

GRI 303-5: Water consumption

SASB IF-EU-140a.1: Water Management

GRI 303-3: Water Withdrawal	Unit	2024		2023
GRI 303-3: Water Withdrawal	Unit	All the areas	Areas of significant influence on water resources	All the areas	Areas of significant influence on water resources
Surface water
Fresh water	ML	2,576,846.46	2,576,846.46	3,730,524.84	3,730,524,84
Other water (>1,000 mg/lt total dissolved solids)	ML	-	-	-	-
Groundwater
Fresh water	ML	-	-	-	-
Fresh water (>1,000 mg/lt total dissolved solids)		-	-	-	-
Sea water
Fresh water	ML	-	-	-	-
Other water (>1,000 mg/lt total dissolved solids)		1.41	1.41	1.25	1.25
Generated water
Fresh water	ML	-	-	-	-
Other water (>1,000 mg/lt total dissolved solids)	ML	-	-	-	-
Third-party water
Fresh water	ML	2.73	2.65	3.67	3.62
Other water (>1,000 mg/lt total dissolved solids)	ML	-	-	-	-
Surface water	ML	-	-	-	-
Groundwater	ML	-	-	-	-
Sea water	ML	-	-	-	-

Total	ML	2,576,849.19	2,576,849.11	3,730,528.51	3,730,528.46
Fresh water	ML	1.41	1.41	1.25	1.25

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

GRI 303-4: Water discharge	Unit	2024		2023
GRI 303-4: Water discharge	Unit	All the areas	Areas of significant influence on water resources	All the areas	Areas of significant influence on water resources
Surface water
Fresh water	ML	2,576,846.46	2,576,846.46	3,730,524.84	3,730,524.84
Other water (>1,000 mg/lt total dissolved solids)	ML	-	-	-	-
Groundwater
Fresh water	ML	-	-	-	-
Other water (>1,000 mg/lt total dissolved solids)	ML	-	-	-	-
Sea water
Fresh water	ML	-	-	-	-
Other water (>1,000 mg/lt total dissolved solids)	ML	0.99	0.99	0.87	0.87
Third-party water
Fresh water	ML	-	-	-	-
Other water (>1,000 mg/lt total dissolved solids)	ML	-	-	-	-
Total third country waters sent for use by other organizations	ML	-	-	-	-
Total
Fresh water	ML	2,576,846.46	2,576,846.46	3,730,524.84	3,730,524.84
Other water (>1,000 mg/lt total dissolved solids)	ML	0.99	0.99	0.87	0.87

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Total Water Withdrawal/Discharge/Consumption	Unit	2024		2023
Total Water Withdrawal/Discharge/Consumption	Unit	All the areas	Areas of significant influence on water resources	All the areas	Areas of significant influence on water resources
Total Water Withdrawal
a) Total water withdrawal	ML	2,576,850.61	2,576,850.52	3,730,529.76	3,730,529.71
b) Total freshwater abstraction	ML	2,576,849.19	2,576,849.11	3,730,528.51	3,730,528.46
c) Total other water intake (>1,000 mg/lt total dissolved solids)	ML	1.41	1.41	1.25	1.25
Total water discharge
a) Total water discharge	ML	2,576,847.45	2,576,847.45	3,730,525.71	3,730,525.71
b) Total freshwater discharge	ML	2,576,846.46	2,576,846.46	3,730,524.84	3,730,524.84
c) Other waters (>1,000 mg/lt total dissolved solids)	ML	0.99	0.99	0.87	0.87
Total water consumption
a) Total water consumption	ML	3.16	3.07	4.05	4.0
b) Change in water storage	ML	-	-	-	-

1Includes data from all operating facilities controlled by the Group in Greece, Bulgaria, Poland.

The following data has been calculated:

- River water for the operation of hydroelectric stations (water withdrawn in the case is equal to water discharged)

- Seawater used for the desalination in Agios Georgios Island

- Water from the local networks, water transferred to the facilities with vehicles and bottled water.

- Water stress areas have been identified through the WWF Water Risk Filter (only installations in Bulgaria and 5 out of 8 installations in Poland are considered low risk).

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Environmental data for other Group activities 1

	20241	20232
Total energy consumption (in MWh)	412.18	3,771.80
Direct emissions (Scope 1) (in tonnes of CO₂e)	90.27	883.12
Indirect emissions (Scope 2) - Location-based emissions (in tonnes of CO₂e)	12.68	15.48
Indirect emissions (Scope 2) - market-based emissions (in tonnes of CO₂e)	0	0
Electricity consumption (in kWh)3	46.605.41	41,643.14
Water withdrawal from third parties (lt)4	191,634.00	12,720,000.00
Total waste produced (tn)5	613.17	226.26
Soils and stones - 17 05 04	562.57	0.00
Construction and demolition waste mixtures - 17 09 04	23.08	226.26
Mixed packaging - 15 01 06	27.52	0.00

1 For 2024, values refer to the Group’s activity for construction purposes.

2 For 2023, values refer to the Group's activity for construction of wind farms in Evia and the support, operation, maintenance and technical management of the electronic ticket system.

3 The listed price refers to the consumption of electricity for the construction projects including the houses rented for the employees

4 The listed price refers almost entirely to wetting the streets during the construction of the Kafireas works.

5The listed price refers to construction waste .

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

5.Sustainable Supply Chain

To maximize its positive impact, the Group evaluates the environmental, social, and economic implications of its business activities across the entire supply chain. In response to emerging supply chain challenges, the Group continually revises its management criteria, incorporating new engagement terms with suppliers and prioritizing domestic partnerships. Each year, the Group strives to deepen its collaboration with local suppliers, fostering trust-based relationships that invigorate local communities and enhance the Group's socio-economic footprint.

5.1 Due diligence and other policies.

TERNA ENERGY Group acknowledges the critical role of promoting core principles and values related to corporate culture and business ethics within the supply chain. This dissemination is seen as a vital component of conducting business responsibly. In this context, the Group has in place its

Purchasing Policy

that is universally implemented, defining the basic framework of policies, values and commitments that should characterize the professional behavior of all the Group's partners, including its subsidiaries in Greece and abroad. Therefore, an agreed-upon and transparent operational and behavioral framework is established to guide all our partners, subcontractors, and suppliers.

The Procurement Policy acknowledges the potential risks arising from incidents where suppliers breach international standards or laws or fail to align with the Group's established policies and values. It is recognized that supply chain risks could stem from insufficient support for local and domestic suppliers, potentially diminishing their purchasing power and negatively impacting economic growth and prosperity in the regions where the Group operates.

5.1.1Supply Chain Assessment

Μetric ATHEX C-S8: Supplier Assessment

The Group prioritizes responsible supply chain management as a core element of its strategy to generate long-term value through its business operations and foster sustainable relationships with suppliers and partners. To achieve this, the suppliers and partners that the Group collaborates with are carefully selected to align with its Procurement Policy. Moreover, the Group clearly communicates the minimum cooperation requirements aimed at upholding environmental, energy, and social standards as outlined by its policies and procedures.

Key conditions for collaboration with any supplier include full compliance with the regulatory framework concerning Health and Safety, and environmental management, the Code of Conduct and Ethics, the Human Rights Policy, and the Personal Data Protection Policy. These standards are essential for maintaining the proper and secure functioning of the supply chain, while ensuring the safe execution of all operations. Furthermore, the Group emphasizes the use of materials and equipment that are environmentally friendly, energy-efficient, and pose minimal risk to both users and the environment, in addition to being highly suitable and functional.

In light of these priorities, the Group's process for selecting key suppliers and partners is also guided by ESG (Environmental, Social, and Governance) criteria. The evaluation of these partnerships is conducted periodically to ensure they remain highly suitable and aligned with the Group's objectives.

5.1.2Respect for Human Rights

Due Diligence and other policies

ATHEX Metric C-S6: Human rights policy

Human rights Policy

TERNA ENERGY Group has established its Human Rights Policy as the cornerstone of its commitment to responsible business conduct and its contribution to Sustainable Development. This policy underscores the

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Group's dedication to respecting international human rights standards and acknowledges its responsibility to identify, assess, and manage potential impacts on stakeholders' rights across its entire value chain and operations. Through this policy, TERNA ENERGY Group reaffirms its commitment to integrating human rights considerations into all aspects of its business activities.

The scope of the Policy extends to all countries where the Group operates, identifying human rights issues based on stakeholder group categories and considering the following:

▪United Nations Universal Declaration of Human Rights/The International Bill of Human Rights

▪United Nations International Covenant on Civil and Political Rights

▪United Nations International Covenant on Social, Economic and Cultural Rights

▪United Nations Guiding Principles on Business and Human Rights

▪United Nations Global Compact Principles

▪ILO Declaration on Fundamental Principles and Rights at Work

▪United Nations Resolution 46/7 on Human Rights and the Environment

▪Voluntary Principles on Security and Human Rights

▪The Business and Human Rights Resource Centre Benchmark for Renewable Energy & Human Rights

The Human Rights Policy is covered by the Group’s Complaints and Grievance Mechanism and has been thoroughly communicated to all employees.

5.2Risk Management

TERNA ENERGY Group acknowledges the high importance of respecting internationally recognized human rights, as it sets the foundation of responsible business behavior while paving the way to its sustainable development. The Group identifies the risk of human rights violations both within its supply chain and its own boundaries, such as forced or child labor.

The potential violation of human rights may have negative impacts on the Group itself, such as the imposition of fines or penalties, as well as on its employees and reputation and / or trust of its stakeholders. Implementing the human rights principles, the Group contributes more widely to the reinforcement of the rule of law and to the improvement of legal systems, which form the basis for the conclusion of all business contracts.

5.3Non-financial performance indicators

In 2024, there were no incidents of human rights violations at TERNA ENERGY Group.

6Social and Labor issues

In today's rapidly evolving global landscape, addressing social and labor issues has become a pivotal aspect of sustainable business practices. The Group embraces this perspective and places its people at the center of its focus, as a fundamental element to its growth, business continuity, and unimpeded operations. Therefore, the Group has in place mechanism to identify impacts, risks and opportunities concerning social and labor issues to maintain a balanced and safe working environment, supporting the Group's vision.

6.1Due Diligence and other policies

TERNA ENERGY Group recognizes the necessity of fostering an equitable and inclusive work environment that not only complies with regulatory standards but also enhance the well-being and development of its workforce. Through dedicated efforts and the implementation of responsible policies that create shared value for all stakeholders, the Group aims to:

▪Enhance its socio-economic impact.

▪Ensure equal opportunities in employment, pay, and benefits.

▪Provide equal access to training and education.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

▪Implement its Health and Safety Policy.

Moreover, the Group actively supports the local communities where it operates and interacts to significantly contribute to the broader goal of nurturing resilient and thriving societies. Through ongoing stakeholder engagement and consultation, the Group strives to identify and address the needs of these communities. Recognizing the importance of investing in its people, the Group prioritizes this effort by allocating necessary resources to continuously improve the working environment.

6.1.1Human Resources

TERNA ENERGY’S firm belief is that its employees should face the professional environment as a constant challenge. Therefore, human resources are systematically supported in their professional and personal development, as it is them who ensure its growth and development.

Equal opportunities, rewards, and benefits

The Group prioritizes equality and inclusion in the workplace, emphasizing the importance of equal treatment, the elimination of discrimination, and the provision of equal opportunities as fundamental to its corporate culture and business conduct. To foster career advancement, the Group actively promotes internal recruitment, ensuring that existing employees are given the opportunity to fill in job openings, thereby enhancing their professional growth. Additionally, the Group collaborates with leading universities across the country to increase internship opportunities and provide undergraduates with valuable professional experience. This partnership not only enhances students' educational experiences but also creates potential employment opportunities for them after graduation.

To foster a fair working environment, the Group has established its

Remuneration Policy

. The Policy takes into consideration the relevant best practices for listed companies, the national legislation 4706/2020 on Corporate Governance the provisions of the Company’s Articles of Association and its Corporate Governance Code while also reflecting the existing agreements regarding the remunerations of the members of the Board of Directors.

The core principles of this policy include:

▪Creating a workplace that engages and motivates employees.

▪Attracting skilled executives and competent employees at all levels.

▪Operating efficiently within a controlled and stable environment of well-trained human resources, with a common corporate culture and knowledge of the requirements, in which the Group constantly invests.

In line with these principles, all employee-related actions are guided by meritocratic criteria, focusing on individual performance, competence, achievements, effectiveness, and qualifications. The talent attrition and retention are conducted through transparent and objective processes that support the Group's overarching business strategy.

The Remuneration Committee is responsible for the Compensation Policy of BoD, committee members, individuals holding the position of General Managers or their deputies, as well as the senior management of the Group, as provided for in Article 110, paragraph 1 of Law 4548/2018, while the Group's Human Resources Management is responsible for the proper implementation of the Compensation and Benefits framework for the rest of the Group's population.

Training of employees

Training and development are pivotal for advancing employees' professional growth. Recognizing the significant value of its human capital, the Group strategically invests in providing the necessary resources and

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

regularly evaluating its employees to develop their skills and support their career progression in alignment with the Group's strategic objectives.

The Group systematically invests in training programs designed to enhance employee performance, upgrade their technical skills, and improve their ability to respond to emergency situations. The training and development initiatives are specifically tailored to align with the responsibilities of each role, strategic objectives, and the needs of the workforce. Additionally, internal training sessions are conducted annually and as required by supervisors and subject matter experts. These sessions cover key topics, such as Health and Safety, environmental issues, personal data protection, cybersecurity, and adherence to the Code of Conduct.

The Group's training plan includes the following categories of training activities:

▪Intra-company training programs

▪Inter-company training programs of third parties

▪Conferences/ Workshops/ Lectures/ Exhibitions

▪Foreign Language Courses

▪Postgraduate programs

Moreover, as part of the Group's continuous employee training efforts, its e-learning platform has been activated to enable remote training for all employees on various topics (e.g., personal data protection, human rights, stress management, cybersecurity, and the implementation of the Code of Conduct), thereby enhancing seamless access to training while facilitating personal development. All employees have access to a variety of topics that can always revisit and refresh their training as needed. The Group has a Training Policy which is a guiding policy for all TERNA ENERGY Group personnel. The purpose of the Policy is to describe the framework of internal procedures regarding the training of the Group's Human Resources and the dissemination of knowledge and experience, with emphasis on any developments concerning Internal Audit, Risk Management, Regulatory Compliance, Information Systems, Information Security and Personal Data Protection departments. The Policy is implemented under the responsibility of the Development Department of the Human Resources Division, is approved by the Group's Management as a framework and may be specified according to the needs and requirements of each subsidiary.

Responsible social relations and strengthening of the local communities

The Group is dedicated to fostering trusting relationships with local communities as a cornerstone of its commitment to Sustainable Development. Strengthening these community ties is integral to the Group's strategic approach, which focuses on generating beneficial impacts in its areas of operation.

Key measures within this strategy include the creation of new job opportunities, support for local suppliers, and engagement with stakeholders. Special emphasis is placed on understanding and enhancing the socio-economic footprint of projects. Furthermore, the Group enhances consultation processes with stakeholders to build and maintain trust-based relationships.

6.1.2Health and safety

Ensuring the health and safety of employees is paramount for the Group, reflecting its commitment to creating a secure and supportive working environment. By implementing a series of Health and Safety actions, the Group aims to safeguard the well-being of its workforce and uphold the highest standards of operational safety. Key actions include:

▪Implementation of a certified Health and Safety Management System based on the international standard ISO 45001:2018.

▪Fostering a corporate culture is governed by Health and Safety principles.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

▪Ensuring full compliance with legal and other national, community, and international requirements, directives, and provisions related to Health and Safety.

▪Implementing, monitoring, evaluating, and improving Health and Safety actions.

▪Identifying occupational risks and developing a comprehensive prevention methodology.

▪Preventing injuries, illnesses, and adverse Health and Safety incidents.

▪Preparing and implementing emergency management plans.

▪Conducting measurements of harmful factors in the working environment (e.g., noise, particulate matter).

▪Providing appropriate and adequate Health and Safety training and information to all employees, suppliers, subcontractors, partners, and visitors.

▪Ensuring compliance and strict adherence to Health and Safety procedures.

▪Conducting immediate investigations of each accident/incident to assess the factors that led to it and implementing preventive measures.

▪Incorporating technologies, best practices, and operating procedures that ensure safety conditions for employees, subcontractors, and third parties.

The practical commitment to Health and Safety issues is demonstrated by the certification of the Health and Safety Management System, which covers all the Group's activities, by an accredited body.

6.1.3Combating workplace violence and harassment

The Group’s commitment to fostering a healthy and safe working environment is reflected in its Policy Against Violence and Harassment at the Workplace that has been established in 2022. This policy affirms the Group's recognition and respect for every employee's right to a workplace free from violence and harassment, emphasizing respect and the safeguarding of human dignity. Through this policy, the Group declares its zero tolerance to any form of violence and harassment. It commits to taking all appropriate and necessary measures to prevent and address such behaviors, ensuring a respectful and secure environment for all employees.

6.2Risk Management

The Group acknowledges the potential risks that can arise from a lack of equal opportunities, fair compensation, adequate health and safety conditions, and comprehensive employee training, which can negatively impact its operational effectiveness. To address these challenges, the Group has invested in establishing the necessary conditions to foster transparent recruitment, training, development, and reward systems. This commitment ensures equal opportunities, supports diversity across its workforce, and nurtures an ethical corporate culture.

The Group places a high priority on the Health and Safety (H&S) of all its employees. Recognizing the potential risk of occupational accidents, the Group proactively seeks to minimize these risks by preparing detailed Occupational Risk Assessment Studies. These studies identify potential health and safety risks associated with each job position, allowing for targeted preventive measures.

In addition to its internal focus, the Group is committed to respecting the local communities where it operates. Before initiating any new projects, it conducts comprehensive impact studies to evaluate the potential social and environmental risks, such as effects on residents' health and safety and quality of life. By expanding job opportunities, the Group actively contributes to mitigating the potential economic and social impacts of reduced employment levels in the country, with a particular focus on creating jobs at the local

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

level. Furthermore, the Group emphasizes the importance of recognizing and mitigating any indirect negative economic impacts its activities may cause, by implementing best practices for effective management.

6.3Non-financial performance indicators

During 2024, the social contribution of TERNA ENERGY Group through sponsorships, donations and infrastructure projects in the areas where it operates amounted to €1.21 million.

At the same time, the compensatory benefits to the municipalities where the Group's projects are located approached €8.34 million, which corresponds to 3% of the gross revenues from the operation of the projects.

The Group, committed to its pledge to protect the environment and minimize the impact of its activities, continued its efforts in 2024 to monitor its environmental footprint by implementing the relevant environmental impact studies in all the projects being constructed and carried out consultations and public information programs, where required.

GRI 406-1: Total number of discrimination incidents and corrective actions taken

During 2024, there were no reported cases of human rights abuses and / or violations, discrimination due to race, religion, gender, age, disability, nationality, political beliefs, etc., including incidents of harassment, in any of its activities.

ATHEX Metric SS-E6: Backlog cancellations

During 2024, there were no backlog cancellations or delays of work related to impacts on society within the TERNA ENERGY Group.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

GRI 2-7: Employees

	2024					2023
Total	Male	Female	Other1	Not reported	Total	Male	Female	Other1	Not reported	Total
Number of permanent employees	118	56	0	0	174	334	100	0	0	443
Number of temporary employees	2	1	0	0	3	15	4	0	0	19
Number of non-guaranteed hours employees	0	0	0	0	0	0	0	0	0	0
Number of full-time employees	219	74	0	0	293	356	98	0	0	454
Number of part-time employees	4	3	0	0	7	2	6	0	0	8
Number of self- employed	103	20	0	0	123	111	21	0	0	132
Total number of employees (incl. self-employed)	223	77	0	0	300	469	125	0	0	594
Total number of employees (excl. self-employed)	120	57	0	0	177	358	104	0	0	462

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

	2024						2023
Greece	Male	Female	Other1	Not reported	Total	Male		Female	Other1	Not reported	Total
Number of permanent employees	105	50	0	0	155	334		96	0	0	430
Number of temporary employees	2	1	0	0	3	12		4	0	0	16
Number of non-guaranteed hours employees	0	0	0	0	0	0		0	0	0	0
Number of full-time employees	206	68	0	0	274	344		94	0	0	438
Number of part-time employees	4	3	0	0	7	2		6	0	0	8
Number of self- employed	103	20	0	0	123	111		21	0	0	132
Total number of employees (incl. self-employed)	210	71	0	0	281	457		121	0	0	578
Total number of employees (excl. self-employed)	107	51	0	0	158	346		100	0	0	446

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

	2024						2023
Poland	Male	Female	Other1	Not reported	Total	Male		Female	Other1	Not reported	Total
Number of permanent employees	8	4	0	0	12	4		2	0	0	6
Number of temporary employees	0	0	0	0	0	3		0	0	0	3
Number of non-guaranteed hours employees	0	0	0	0	0	0		0	0	0	0
Number of full-time employees	8	4	0	0	12	7		2	0	0	9
Number of part-time employees	0	0	0	0	0	0		0	0	0	0
Number of self- employed	0	0	0	0	0	0		0	0	0	0
Total number of employees (incl. self-employed)	8	4	0	0	12	7		2	0	0	9
Total number of employees (excl. self-employed)	8	4	0	0	12	7		2	0	0	9

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

	2024						2023
Bulgaria	Male	Female	Other1	Not reported	Total	Male		Female	Other1	Not reported	Total
Number of permanent employees	5	2	0	0	7	4		2	0	0	6
Number of temporary employees	0	0	0	0	0	0		0	0	0	0
Number of non-guaranteed hours employees	0	0	0	0	0	0		0	0	0	0
Number of full-time employees	5	2	0	0	7	4		2	0	0	6
Number of part-time employees	0	0	0	0	0	0		0	0	0	0
Number of self- employed	0	0	0	0	0	0		0	0	0	0
Total number of employees (incl. self-employed)	5	2	0	0	7	4		2	0	0	6
Total number of employees (excl. self-employed)	5	2	0	0	7	4		2	0	0	6

1Gender as defined by the employees themselves.

2The number of employees has been calculated using the Headcount methodology.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

GRI 2-8: Workers who are not employees

GRI 2-8: Workers who are not employees	20241	2023
Workers who are not employees and whose work is controlled by the organization
TOTAL	175	151

1Includes all trainees, agency workers and subcontractors. The number of subcontractors has been calculated as the average number of subcontractors who worked at TERNA ENERGY's facilities in 2023

(Greece, Poland, Bulgaria).

ATHEX Metric C-S2: Female employees

ATHEX C-S2: Female employees	2024	2023
Percentage of female employees*	25.7%	21.5%

ATHEX Metric C-S3: Female employees in management positions

ATHEX C-S3: Female employees in management positions	2024	2023
Percentage of female employees at the top 10% of employees	30.0%	20.7%

GRI 2-30: Collective bargaining agreements

ATHEX Metric C-S7: Collective bargaining agreements

GRI 2-30: Collective bargaining agreements	20241	2023
Percentage of the total number of employees covered by collective bargaining agreements
%	100%	100%

1 All employees of TERNA ENERGY in Greece are covered by the National General Collective Agreement. Correspondingly, the provisions for collective agreements at the national level are followed on a case-by-case basis in the countries where the Group operates abroad.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

GRI 403-8: Workers covered by an occupational health and safety management system

GRI 403-8: Workers covered by an occupational health and safety management system	2024	2023
Employees and workers who are not employees but whose work and/or workplace is controlled by the organization1
Total number	472	745
Number and percentage of all employees and workers who are not employees but whose work and/or workplace is controlled by the organization, who are covered by a H&S management system
Number	472	745
Percentage	100%	100%
Number and percentage of all employees and workers who are not employees but whose work and/or workplace is controlled by the organization, who are covered by a H&S management system that has been internally audited
Number	472	745
Percentage	100%	100%
Number and percentage of all employees and workers who are not employees but whose work and/or workplace is controlled by the organization, who are covered by a H&S management system that has been audited or certified by an external party2
Number	450	726
Percentage	95.3%	98%

1Workers who are not employees but whose work and/or workplace is controlled by the organization, include all trainees, agency workers as well as subcontractors. The number of subcontractors has been calculated as the average number of subcontractors who worked at TERNA ENERGY's facilities. (Greece, Poland, Bulgaria).

2Employees and employees who are not employees but whose work and/or workplace is controlled by the organisation, based in Bulgaria and Poland, are not covered by an externally audited health and safety system.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

ATHEX Metric SS-S6: Health and safety performance

ATHEX C-S5: Health and safety performance	2024	2023
Employees
Number of workdays lost due to work-related accidents	0	0
Accident severity rate	0.00	0.00
Workers who are not employees but whose work and/or workplace is controlled by the organization*
Number of workdays lost due to work-related accidents	0	0
Accident severity rate	0.00	0.00

* Workers who are not employees but whose work and/or workplace is controlled by the organization, include all trainees, agency workers as well as subcontractors working in the operations part of Terna Energy’s activities. The number of subcontractors has been calculated as the average number of subcontractors who worked at TERNA ENERGY's facilities.(Greece, Poland, Bulgaria).

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

GRI 403-9 Work-related injuries

GRI 403-10 Work-related ill health

SASB IF-EU-320a.1: (1) Total recordable incident rate (TRIR), (2) fatality rate, and (3) near miss frequency rate (NMFR)

GRI 403-9: Workplace-related injuries	2024	2023
Employees
Number of hours worked	941,600	1,190,744
Number of fatalities as a result of work-related injury	0	0
Rate of fatalities as a result of work-related injury	0.00	0.00
Number of high-consequence work-related injuries (excluding fatalities)	0	0
Rate of high-consequence work-related injuries (excluding fatalities)	0.00	0.00
Number of recordable work-related injury2	0	0
Rate of recordable work-related injuries (IR) 3	0	0
The main types and number of work-related injuries:	-	-
Light injury during the use of stairs	0	0
All workers who are not employees but whose work and/or workplace is controlled by the organization
Number of hours worked	175,192	114,936
Number of fatalities as a result of work-related injury	0	0
Rate of fatalities as a result of work-related injury	0.00	0.00
Number of high-consequence work-related injuries (excluding fatalities)	0	0
Rate of high-consequence work-related injuries (excluding fatalities)	0.00	0.00
Number of recordable work-related injury2	0	0
Rate of recordable work-related injuries (IR) 3	0	0
The main types and number of work-related injuries	-	-

In the above table:

▪Indicators are presented in rounded form.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

▪There were no workplace-related deaths, high-consequence injuries or illnesses.

▪Indicators are calculated at a rate of 200,000 ([total number of recordable work-related injuries or number of working days lost due to work-related accidents / total number of working hours of all employees per year] x 200,000). The rate of 200,000 indicates the number of hours worked by 100 full-time employees in a year.

▪Occupational hazards that may result in injuries have been identified and recorded by the safety technician in collaboration with the operation and project managers of each facility, through the occupational risk assessment process. The Safety Technician, in case of any injury, makes recommendations for the proper monitoring of safety rules and instructions to show due care.

▪Work-related near-misses are not included.

▪Workers who are not employees but whose work and/or workplace is controlled by the organization, include all trainees, agency workers as well as subcontractors working in the operations part of Terna Energy’s activities. The number of subcontractors has been calculated as the average number of subcontractors who worked at TERNA ENERGY's facilities. (Greece, Poland, Bulgaria).

2 Refers to minor injuries.

3 Accident frequency rate based on terminology of the Athens Stock Exchange Reporting Guide 2023.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

GRI 401-1: New employees hires and employee turnover

ATHEX Metric C-S4: Employee turnover

Total	2024			2023
Total	Male	Female	Total	Male	Female	Total
Total number of employees	223	76	299	468	125	593
Number of voluntary employee exits	253	56	309	57	11	68
Employee voluntary turnover rate1	113%	74%	103%	12.2%	8.8%	11.5%
Number of involuntary employee exits	27	5	32	37	7	44
Employee involuntary turnover rate	12%	7%	11%	7.9%	5.6%	7.4%
Total number of turnover	280	61	341	94	18	112
Total employee turnover rate	126%	80%	114%	20.1%	14.4%	18.9%

1 The employee voluntary turnover rate takes into account the post-acquisition carve-out of TERNA ENERGY Assets and the personnel’s integration into the GEK TERNA Group, following the sale of the TERNA Energy Group.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Greece	2024			2023
Greece	Male	Female	Total	Male	Female	Total
Total number of employees	210	70	280	457	121	578
Number of voluntary employee exits	253	56	309	56	10	66
Employee voluntary turnover rate1	120%	80%	110%	12.3%	8.3%	11.4%
Number of involuntary employee exits	27	5	32	37	7	44
Employee involuntary turnover rate	13%	7%	11%	8.1%	5.8%	7.6%
Total number of turnover	280	61	341	93	17	110
Total employee turnover rate	133%	87%	122%	20.4%	14.0%	19.0%

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Poland	2024			2023
Poland	Male	Female	Total	Male	Female	Total
Total number of employees	8	4	12	7	2	9
Number of voluntary employee exits	0	0	0	1	1	2
Employee voluntary turnover rate	0	0	0	14%	50%	22%
Number of involuntary employee exits	0	0	0	0	0	0
Employee involuntary turnover rate	0	0	0	0	0	0
Total number of turnover	0	0	0	1	1	2
Total employee turnover rate	0	0	0	14%	50%	22%

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Bulgaria	2024			2023
Bulgaria	Male	Female	Total	Male	Female	Total
Total number of employees	5	2	7	4	2	6
Number of voluntary employee exits	0	0	0	0	0	0
Employee voluntary turnover rate	0%	0%	0%	0%	0%	0%
Number of involuntary employee exits	0	0	0	0	0	0
Employee involuntary turnover rate	0	0	0	0%	0%	0%
Total number of turnover	0	0	0	0	0	0
Total employee turnover rate	0	0	0	0%	0%	0%

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

ATHEX Metric C-S4: Employee turnover 1

Greece	2024			2023
Greece	Male	Female	Total	Male	Female	Total
Ratio of voluntary employee turnover2	120.48%	80.00%	110.36%	12.25%	8.26%	11.42%
Ratio of involuntary employee turnover	12.86%	7.14%	11.43%	8.10%	5.79%	7.61%

Abroad	2024			2023
Abroad	Male	Female	Total	Male	Female	Total
Ratio of voluntary employee turnover	0.00%	0.00%	0.00%	8.33%	25.00%	12.50%
Ratio of involuntary employee turnover	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

1 The ratio of voluntary employee turnover is calculated by dividing the total amount of voluntary departures within a year by the number of employees within a year and multiplying it by 100 to give the figure as a percentage. The ratio of involuntary employee turnover is calculated by dividing the total amount of involuntary departures in a year by the number of employees in a year and multiplying by 100 to give the figure as a percentage.

2 The employee voluntary turnover rate takes into account the post-acquisition carve-out of TERNA ENERGY Assets and the personnel’s integration into the GEK TERNA Group, following the sale of the TERNA Energy Group.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

GRI 404-1: Average hours of training per year per employee

ATHEX Metric C-S5: Employee training

GRI 404-1 Average hours of training per year per employee	2024				2023
By employee category	Male	Female	Other1	Not Disclosed	Male	Female	Other1	Not Disclosed
Top Management	0.00	0.00	0.00	0.00	8.3	16.0	0.0	0.0
Rest of own workforce	6.91	6.09	0.00	0.00	5.7	8.6	0.0	0.0
Total	6.85	6.09	0.00	0.00	5.9	9.3	0.0	0.0
By function	Male	Female	Other1	Not Disclosed	Male	Female	Other1	Not Disclosed
Administrative staff	5.35	7.00	0.00	0.00	19.1	23.0	0.0	0.0
Technicians	12.39	3.50	0.00	0.00	9.2	0.6	0.0	0.0
Rest of workers	0.55	0.58	0.00	0.00	0.1	0.0	0.0	0.0
Total	6.85	6.09	0.00	0.00	5.9	9.3	0.0	0.0

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

GRI 405-1: Diversity of governance bodies and employees

Gender distribution by employee category

Age distribution

Total number of employees during the reporting period per country	under 30 years old	30-50 years old	over 50 years old	Total
2024	11.7%	70.0%	18.3%
2024	35	210	55	300
2023	11.1%	69.5%	19.4%
2023	66	412	115	593

A screenshot of a graph

AI-generated content may be incorrect.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

7.Taxonomy Report

7.1Overview

The EU Taxonomy Regulation (EU 2020/852, as amended) is a key element of the European Commission's initiative, as it is part of the broader EU Sustainable Finance agenda aimed at directing investments towards projects and activities that support the EU's environmental objectives. The Taxonomy targets to provide clarity and transparency to investors, helping them make informed decisions and channel funds towards sustainable projects, thereby supporting the EU's goal of achieving climate neutrality by 2050.

The EU Taxonomy (EUT) is a classification system established by the European Union to identify which economic activities are considered environmentally sustainable. Specific provisions have been set forth in the regulation to classify an activity as green, taking into account detailed technical screening criteria, the Do no Significant Harm Principle (DNSH criteria), and minimum social and governance safeguards.

Within the EU Taxonomy, the following six environmental objectives are identified:

CCM	CCA	WTR
Climate change mitigation	Climate change adaptation	Sustainable use and protection of water and marine resources
PPC	CE	BIO
Pollution prevention and control	Transition to a circular economy	Protection and restoration of biodiversity and ecosystems

The climate-related objectives (CCM and CCA) were set out in the Climate Delegated Act3, and have been applied since 2021, while the remaining four objectives came into force in June 2023 under the Environmental Delegated Acts4, and are effective as of 2023 reporting year onwards.

The following section includes the required disclosures for non-financial entities in accordance with the EUT Regulation provisions to disclose the percentage of the eligible economic activities and the extent to which these are aligned through the Key Performance Indicators (KPIs) defined by the EUT Regulation (Turnover, CapEx, OpEx).

Aiming to achieve full alignment with the EUT Regulation, TERNA ENERGY Group assessed both eligibility and alignment of its business activities for FY2024 through a thorough assessment process in line with the requirements of the EUT Climate Delegated Act and Environmental Delegated Acts.

According to this assessment, the Group’s activities substantially contribute to the Climate change mitigation objective. An overview of the EUT assessment outcomes for FY2024 is presented below:

Table 1: Proportion of Taxonomy-eligible and Taxonomy-aligned economic activities in total Turnover, CapEx and OpEx

FY 2024

Total

(TEUR)

Proportion of Taxonomy-eligible (non-aligned) economic activities (in %)

Proportion of Taxonomy-aligned economic activities (in %)

Proportion of Taxonomy- non-eligible economic activities (in %)

Operating expenditure (OpEx)

28,143

99.5%

0.5%

3 Commission Delegated Regulation (EU) 2021/2139

4 Commission Delegated Regulations (EU) 2023/2485 and (EU) 2023/2486

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

7.2Eligibility Assessment

All economic activities carried out by the Group in FY2024 were reviewed in order to identify eligible activities under the EUT Regulation. An economic activity is considered Taxonomy-eligible if it is described in the respective Delegated Acts (Climate Delegated Act and the Environmental Delegated Acts) supplementing the EUT Regulation, irrespective of whether that economic activity meets any or all of the Technical Screening Criteria (TSC) laid down in the EUT Delegated Acts. Non-eligible economic activities under the EUT are economic activities not included/described in the Delegated Acts of the EUT Regulation.

The below table presents the Group’s Taxonomy-eligible economic activities conducted in FY2024.

Table 2: Taxonomy-eligible economic activities and associated projects/assets in FY2024 considering substantial contribution to the CCM environmental objective.

Economic Activity

Description

NACE Code

Number of associated projects/assets and total capacity

4.1. Electricity generation using solar photovoltaic technology

Construction and operation of electricity generation facilities that produce electricity using solar photovoltaic (PV) technology

35.11

42.22

3 projects in operation

~8.5MW

3 projects under construction

~MW148.9MW

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Description automatically generated

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Economic Activity	Description	NACE Code	Number of associated projects/assets and total capacity
4.3 Electricity generation from wind power	Construction and operation of electricity generation facilities that produce electricity from wind power	35.11 42.22	74 projects in operation ~1.2GW 1 hybrid project under construction 89.1MW
4.5 Electricity generation from hydropower	Construction and operation of electricity generation facilities that produce electricity from hydropower.	35.11 42.22	2 projects in operation ~17.8ΜW
4.8 Electricity generation from bioenergy	Construction and operation of electricity generation installations that produce electricity exclusively from biomass, biogas or bioliquids.	35.11 42.22	1 project in operation 1ΜW
4.10 Storage of electricity	Construction and operation of facilities where electricity is stored and later returned in the form of electricity. The activity includes pumped hydropower storage activities.	-	2 projects under construction Amfilochia pumped hydropower storage system of 680MW (production) and 730MW (pumped hydropower storage) Amari Crete hybrid project of 89.1MW (production) and 72MW (pumped hydropower storage)

The below figure presents TERNA ENERGY Group’s electricity generation from RES up to FY2024 and respective annual CO2 emissions reduction from conventional (fossil fuel powered) electricity generation.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Figure 1 TERNA ENERGY Group electricity generation from RES during 2000-2024

Sustainability
CO2 Emissions Reduction	2,382,839.1 tons CO2 per year
Conventional Fuels Reduction	6,243,608.4 tons lignite per year
Energy Demand	Coverage for 690,094.1 Households per year

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Description automatically generated with medium confidence

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

All of the Group's electricity generation and storage facilities fall under activities 4.1, 4.3, 4.5, 4.8 and 4.10 of the EUT and are assessed as eligible for substantial contribution to the CCM environmental objective of the EUT Regulation.

Activities 4.1, 4.3, 4.5 and 4.8 encompass projects for electricity generation using solar photovoltaic technology, wind energy, hydropower, and bioenergy, respectively. Additionally, activity 4.10 features the significant Pumped Hydropower Storage System in Amfilochia of 730MW capacity, incorporated into the Group's project portfolio in 2023 and the Amari (Crete) Hybrid project integrating wind power generation with pumped hydropower storage capacity of 72MW. All these activities significantly contribute to reducing GHG emissions through the generation, transmission, storage, distribution, or use of renewable energy sources.

7.3Alignment assessment

The EUT Regulation sets out four conditions that an economic activity must meet to qualify as environmentally sustainable and aligned:

•substantial contribution to one or more of the six environmental objectives set out in Article 9 of the Regulation, in accordance with Articles 10 to 16 of the Regulation – compliance with substantial contribution Technical Screening Criteria (TSC) set for each objective.

•do no significant harm (DNSH) to any of the remaining environmental objectives set out in Article 9 of the Regulation, in accordance with Article 17 of the Regulation – compliance with DNSH TSC set for each objective.

•be carried out in accordance with the minimum (social) safeguards (MSS) outlined in Article 18 of the Regulation.

For each identified eligible activity for FY2024, TERNA ENERGY Group conducted a thorough assessment to evaluate whether the activity and its associated projects/assets can be ultimately deemed as aligned with the EU Taxonomy TSC for Substantial Contribution to CCM and Do No Significant Harm (DNSH) across the remaining 5 environmental objectives of the EUT.

The assessment also evaluated compliance with the Minimum Social Safeguards (MSS) outlined in Article 18 of the EUT Regulation. These safeguards involve implementing procedures to ensure compliance with the OECD Guidelines for Multinational Enterprises and the United Nations Guiding Principles on Business and Human Rights. This includes adhering to the principles and rights specified in the eight core conventions identified by the International Labor Organization's declaration on fundamental principles and rights at work, as well as the International Charter of Human Rights. The Group thoroughly reviewed all applicable requirements and appropriately applies all relevant procedures and policies.

The Group's electricity generation activities using solar photovoltaic technology (4.1), wind energy (4.3), hydropower (4.5), bioenergy (4.8) and electricity storage activities (4.10) are fully aligned with the substantial contribution TSC for CCM. Details of the alignment assessment and respective evidence are presented below.

7.4Substantial Contribution

Assessing EU Taxonomy alignment starts with meeting the Technical Screening Criteria (TSC) outlined in the EUT Regulation regarding substantial contribution to one or more of the environmental objectives. Each economic activity has specific TSCs that must be fulfilled.

All turnover-generating activities of the Group (4.1, 4.3, 4.5 and 4.8) as well as the future operation of the pumped hydropower storage projects (4.10) substantially contribute to climate change mitigation (CCM) since they meet the relevant TSCs, as presented in the following table.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Table 3: Technical screening criteria ensuring substantial contribution to the CCM objective

EUT eligible activity		Substantial Contribution to CCM TSC	Compliance with TSC
4.1	Electricity generation using solar photovoltaic technology	The activity generates electricity using solar PV technology.	√
4.3	Electricity generation from wind power	The activity generates electricity from wind power.	√
4.5	Electricity generation from hydropower	The electricity generation facility is a run-of-river plant and does not have an artificial reservoir.	√
4.8	Electricity generation from bioenergy	The plants have a rated thermal input of < 2MW and use biomass gas fuel from anaerobic digestion of biowaste. A monitoring and emergency plan to minimize any methane leakage is in place and the biogas produced is used directly for electricity generation.	√
4.10	Storage of electricity	The activity is the construction and operation of electricity storage including pumped hydropower storage.	√

Specifically, the Group’s electricity generation activities using solar photovoltaic technology (4.1) and wind power technologies (4.3) include renewable energy projects (PV plants and wind farms with a total installed capacity of approximately 1.2GW) that substantially contribute to climate change mitigation (CCM) by decarbonizing power generation from fossil fuels and increasing the share of renewable energy sources (RES) in the national and EU energy mix.

Activity 4.5, which involves electricity generation facilities that produce electricity from hydropower, is substantially contributing to CCM. The electricity generation facilities are run-of-river plants and do not have an artificial reservoir. More specifically, the activity consists of two small hydroelectric plants (SHPs) on Acheloos River (Sanidi - Dafnozonara SHP) and on Axios River (Eleousa SHP), with a total installed capacity of 17.8MW.

Activity 4.8 includes an electricity generation facility exclusively from biomass which contributes substantially to climate change mitigation. The biogas plant has a total rated thermal input of 1MW and is designed to produce electricity from biogas resulting from anaerobic digestion of organic material. The plant is supplied with a large amount of organic-rich wastewater from dairy cow farming enterprises, supplemented by feed residues (corn fillings), sludge and waste with organic load. The plant’s operation is based on anaerobic digestion of this organic material, which results in the production of biogas used for electricity generation. The plant implements measures to prevent risks related to the operation of the reactor, including leakage of gases such as methane (CH4).

Finally, activity 4.10 consists of the Group’s pumped hydropower storage systems in Amfilochia and Amari-Crete, currently under construction, which will substantially contribute to CCM further enabling RES integration in the national energy mix.

The assessment of CapEx/OpEx associated with these activities (category A, CapEx/OpEx) follows the conclusions made for the purpose of assessing the Group’s turnover. For investments that also meet specific individual criteria under other activities (category C, CapEx/OpEx) we analyze the investments against these specific criteria. To learn more about how we determined the KPIs please refer to chapter “KPIs and accounting policies”.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

7.5Do no significant harm (DNSH)

For all Taxonomy-eligible economic activities where substantial contribution to CCM is demonstrated, their alignment with the DNSH Technical Screening Criteria (TSC) outlined for the remaining environmental objectives is further assessed on a project/asset level. It should be noted that these activities and associated assets/projects are all located within the EU.

7.6Climate change adaptation (CCA)

Activities 4.1, 4.3, 4.5, 4.8, 4.10

For all Taxonomy-eligible activities substantially contributing to CCM, a physical climate risk assessment is required pursuant to Annex I, Appendix A of the supplementary Delegated Act (EU 2021/2139 as in force) under the EUT Regulation.

With respect to the activities carried out by TERNA ENERGY Group, the assessment focuses on the sites where the below facilities are installed:

▪Solar PV park facilities (4.1).

▪Wind park facilities (4.3)

▪Small hydropower plant facilities (SHPs) (4.5)

▪Biogas plant facilities (4.8)

▪Pumped hydropower storage facilities ( 4.10).

For each of these activities and associated project sites a preliminary screening of climate-related physical risks was carried out as mapped in Annex I (Appendix A) and the risks found to be relevant were further analyzed through a climate risk assessment (CRA). As the expected lifetime of all relevant activities is longer than ten years, the CRA was carried out considering an optimistic, a moderate and a pessimistic scenario, compared to the current risk. The impact for each IPCC scenario RCP2.6, RCP4.5 and RCP8.5 (Representative Concentration Pathway) was assessed as these represent the optimistic outcome of zero emissions by 2100, the moderate outcome of emissions peaking around 2040 and then decreasing while global average temperature increases between 1 and 2 oC by 2100 and, thirdly, the pessimistic outcome with a global temperature increase of about 4.3˚oC by 2100.

The risk assessment involves calculating the effect (magnitude) of the potential impacts (on a five-level scale) and the probability (on a five-level scale) that these impacts will occur, as follows:

Risk = probability x impact

Where:

(i) probability is the probability of occurrence of the identified climate risk

(ii) impact is the magnitude of a business effect from the climate risk

The adaptive capacity is based on adaptation plans already in place and internally available measures to mitigate the impact of climate risks identified. The result of the CRA is, for each of the identified climate risks in each scenario, a physical risk score that indicates the materiality of each risk.

7.7Sustainable use and protection of water and marine resources (WTR)

Activity 4.1

The supplementary Climate Delegated Act of the EUT Regulation does not provide applicable TSC regarding DNSH to the sustainable use and protection of water and marine resources (WTR objective) for activity 4.1.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Activities 4.3, 4.5, 4.8, 4.10

Applicable DNSH TSC for activity 4.3 refer to offshore wind farm projects. TERNA ENERGY Group currently has no offshore wind projects included in its portfolio in 2024.

Electricity generation facilities under activities 4.5 and 4.8, located in Greece have all been subject to an Environmental Impact Assessment (EIA) and received approval through the issuance of the respective Environmental Permits from competent authorities in line with national environmental legislation in force. The EIA process included the assessment of potential impacts on water bodies based on Directive 2000/60/EC provisions and harmonized national legislation. In some cases, specific measures were enacted to comply with requirements set by the authorities to maintain the good status and ecological flow of affected water bodies.

Regarding activity 4.10, the Amfilochia and Amari pumped hydropower storage projects are connected to river systems and comply with the relevant TSC outlined in Annex I, Appendix B of the Climate Delegated Act. Before construction, an EIA was conducted in line with Article 4 of Directive 2000/60/EC to evaluate potential impacts on water bodies and dependent habitats. This assessment used recent, accurate data and considered River Basin Management Plans and cumulative impacts from other infrastructures. The EIA concluded with the issuance of a Decision of Approval of Environmental Terms (DAET), which specifies measures to maintain the good status of affected water bodies. These measures are monitored through an environmental monitoring program.

Transition to a circular economy (CE)

Activities 4.5, 4.8

The supplementary Climate Delegated Act of the EUT Regulation does not provide applicable TSC regarding DNSH to the transition to a circular economy (CE objective) for activities 4.5 and 4.8.

Activities 4.1, 4.3, 4.10

PV panels and wind turbines used in the Group’s projects under activities 4.1 and 4.3 respectively, along with the related engineering equipment, are sourced from reputable manufacturers who prioritize high durability and recyclability. In selecting the technologies and products installed in the Group’s assets, durability, recyclability, and the ease of dismantling and refurbishing are all aspects carefully evaluated. The photovoltaic mechanical equipment is reusable to the greatest extent feasible and recyclable in accordance with applicable regulations. The large metal parts of wind turbines, such as tower sections and the cast iron frame, are considered to be 98% recyclable. Other major components, including generators, gearboxes, cables, and diversion system parts, have a recyclability rate of 95%. The Group implements waste management plans in the context of its ISO 14001 certified Environmental Management System (EMS) and respective environmental permits in place, further ensuring that upon decommissioning this equipment is recycled and re-used to the maximum extent possible.

Regarding activity 4.10, waste management plans are in place for the pumped hydropower storage projects, as stipulated by the respective environmental permits in force and the Group's ISO 14001 EMS. These plans ensure the prevention of waste generation and maximal reuse or recycling upon decommissioning. Additionally, contractual agreements with licensed third parties are in place and staff training and awareness on waste management and other initiatives.

Pollution prevention and control (PPC)

Activities 4.1, 4.3, 4.5, 4.10

The supplementary Climate Delegated Act of the EUT Regulation does not provide applicable TSC regarding DNSH to pollution prevention and control (PPC objective) for activities 4.1, 4.3, 4.5 and 4.10.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Activity 4.8

Regarding activity 4.8, DNSH TSC for pollution prevention and control require facilities to comply with specific standards set out in EU Directives and regulations. Emissions produced by the Group’s biogas plant are within best available techniques’ (BAT) ranges. Following the anaerobic digestion process, dissolved water is produced with suspended organic solid waste content at a percentage of about 5%. Solid waste is then separated and used as a first quality soil improver and solid fertilizer, while meeting the requirements for fertilizing materials set out in national legislation on fertilizers or soil improvers for agricultural use. According to the latest studies, our biogas plant processes over 100tof biowaste per day. Emissions to air and water are within or lower than the emission levels indicated by best available techniques (BAT). Considering the above, electricity generation from biomass complies with all DNSH TSC for the PPC objective.

Protection and restoration of biodiversity and ecosystems (BIO)

Activities 4.1, 4.3, 4.5, 4.8 and 4.10

The DNSH TSC for the o protection and restoration of biodiversity and ecosystems (BIO objective) require an EIA or screening procedure conducted in accordance with Directive 2011/92/EU and ensuring that all necessary mitigation and compensation measures for environmental protection are implemented. The Group’s facilities within the EU have undergone an EIA, resulting in the issuance of relevant decisions and approvals by competent authorities. These decisions incorporate the required measures to mitigate and compensate for potential environmental impacts.

In addition, regarding activities 4.1 and 4.8, the Group’s facilities are not located within or near biodiversity - sensitive areas or UNESCO sites. Wind farms (4.3), hydroelectric projects (4.5) and pumped hydropower storage projects (4.10) located within or near biodiversity-sensitive areas, were subject to an Appropriate Assessment (AA or Special Ecological Assessment in Greek) as part of the EIA and environmental permitting procedure of the projects). Based on the AA findings, we have implemented all necessary mitigation and/or compensation measures to address potential environmental impacts effectively, while environmental monitoring is conducted on an annual basis as per issued environmental permits in force of these projects.

7.8Minimum Safeguards (MS)

The final step for Taxonomy-alignment assessment involves the evaluation of compliance with the minimum (social) safeguards (MS). The MS include all procedures implemented to ensure that identified Taxonomy-eligible economic activities are carried out in alignment with:

▪The OECD Guidelines for Multinational Enterprises (OECD MNE Guidelines)

▪The UN Guiding Principles on Business and Human Rights (UNGPs), including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labor Organization (ILO) on Fundamental Principles and Rights at Work

▪The International Bill of Human Rights

In the absence of further guidance from the European Commission, the MS assessment is based on the “Final Report on Minimum Safeguards” published by the Platform on Sustainable Finance (PSF) in October 20225.

The scope of the MS covers the following four topics:

▪Human rights (including labor and consumer rights)

▪Corruption and bribery

▪Taxation

▪Fair competition

5 https://finance.ec.europa.eu/system/files/2022-10/221011-sustainable-finance-platform-finance-report-minimum-safeguards_en.pdf.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

A two-dimensional assessment approach is followed to assess compliance with MS. On the one hand, assessing whether adequate processes have been implemented to prevent negative impacts (procedural dimension). On the other hand, assessing whether outcomes are monitored to check whether processes are effective (outcome dimension).

Employee and value chain behavior is crucial for complying with EUT MS. TERNA ENERGY Group is committed to ethical business conduct, as detailed in its Code of Conduct, and aligns its operations with the UN's 17 Sustainable Development Goals and national energy targets. Corporate responsibility is integrated into the Group’s Sustainable Development Policy, adhering to ESG (Environmental-Social-Governance) criteria across the four MS dimensions.

Annual training is mandatory for employees and part of the Group’s business strategy. In supply chain and business relationships, the same ethical conduct is expected as within the Group. MS requirements are embedded in business contracts and the Supplier's Code of Conduct, promoting practices for human rights, ethics, environmental protection, safety, meritocracy, transparency, product quality, and fair competition. Suppliers must uphold these ethical principles and ensure compliance among employees and subcontractors. Supplier selection and evaluation processes include due diligence on human rights, anti-corruption, and anti-bribery. Additionally, the Group regularly assesses complaints related to ethics, integrity, and compliance, adjusting procedures as needed.

Human Rights (including labor and consumer rights)

In alignment with the United Nations Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises, including the OECD Due Diligence Guidance for Responsible Business Conduct, a comprehensive approach has been implemented to identify, prevent, and address any actual or potential negative impacts on human rights. The publicly accessible human rights statement outlines the strategy, high-impact areas, and the measures and processes in place to prevent adverse human rights impacts. This strategy is underpinned by a detailed impact analysis that encompasses all business units and subsidiaries.

Procedures are established to ensure swift remedial action in the event of a serious human rights violation, providing necessary support to affected individuals. The effectiveness of these processes is closely monitored through inspections at facilities and construction sites by qualified personnel, alongside regular reviews of legislative and regulatory changes. A grievance mechanism is available for individuals who believe their human rights have been compromised by the activities of TERNA ENERGY Group or its value chain partners.

During the financial year 2024, TERNA ENERGY Group has not been convicted of any violation of labor law or human rights. In addition, TERNA ENERGY Group has not been involved in a case dealt with by an OECD National Contact Point and was not questioned by the Business and Human Rights Resource Center (BHRRC).

Corruption and bribery

Anti-corruption is a fundamental component of TERNA ENERGY Group's business strategy and Code of Conduct. To prevent and address corrupt practices, the Group develops specific control measures across its activities, following a thorough risk assessment, to deter and avoid corruption and bribery. In alignment with this commitment, an Anti-Corruption and Bribery Management System is installed and operational, based on the ISO 37001 standard requirements. An anti-corruption policy has been published and communicated to employees, suppliers, and business partners, and is publicly accessible on the Group's website. Regular training on anti-corruption rules and their application is mandatory for employees, with specialized training provided to those identified as being particularly exposed to corruption risks.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

In the financial year 2024, zero violations of corruption and bribery have been reported.

Taxation

In line with ethical business values, tax governance and tax compliance are important elements of oversight, with a commitment to complying with all relevant tax laws and regulations. The tax governance framework is based on the assessment of selected relevant risks and the application of appropriate safeguards, managed by a team of dedicated and qualified employees who work closely with Group management. Therefore, the approach to tax compliance is transparent, sustainable in the long term, and complies with the Code of Conduct.

In the financial year 2024, TERNA ENERGY Group has not been convicted in court for any major violation of tax laws.

Fair competition

All activities are conducted in accordance with applicable competition laws and regulations, taking into account the laws of all jurisdictions where activities might have anti-competitive effects. The Group's guidelines for fair competition and ethical business conduct aim to achieve and maintain fair competition in a free market environment for the entire group by fostering a corresponding corporate culture. These guidelines assist employees in preventing, detecting, and addressing any competition violations. Raising awareness and providing training that addresses competition law risks associated with business activities are of particular importance to ensure fair competition.

In 2024, there were no convictions of violation of competition laws in court for the Group.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

7.9Key performance indicators (KPIs) and accounting policies

The Key Performance Indicators (KPIs) include the KPI of turnover, the KPI of capital expenditure and the KPI of operating expenditure. For the presentation of the KPIs of the EU Taxonomy, we use the tables provided in Annex II of Delegated Regulation (EU) 2021/2178, as supplemented by Delegated Regulations (EU) 2023/2486 and (EU) 2022/2014. As the KPIs should include the results of the Taxonomy alignment assessment conducted for the previous reporting year, we also present in the tables the corresponding data for the alignment of FY2023.

As none of the Group’s activities are related to natural gas and nuclear energy (activities 4.26-4.31), the specific disclosure requirements introduced by the supplementary Delegated Act C/2022/0631 concerning activities in certain energy sectors are not applicable as shown in table 4.

Table 4: Nuclear energy and fossil gas related activities disclosure

	Nuclear energy related activities
1	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	NO
2	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	NO
3	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	NO
	Fossil gas related activities
4	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	NO
5	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	NO
6	The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	NO

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Table 5: Turnover KPI for the financial year 2024

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Table 6: Capital Expenditure (CapEx) KPI for the financial year 2024

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Table 7: Operational Expenditure (OpEx) KPI for the financial year 2024

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

7.10Accounting policy, definitions and additional information

The consolidated financial statements for TERNA ENERGY Group for 2024 fiscal year (FY2024) have been prepared in compliance with the International Financial Reporting Standards (IFRS). The subsequent sections provide details about the turnover, capital expenditures (CapEx), and operational expenditures (OpEx) of the Group's subsidiaries, which were previously introduced in this report. By converting the Group's environmentally sustainable practices and outcomes into financial metrics such as turnover, CapEx, and OpEx, investors and financial institutions can gain a clear understanding, enabling them to make well-informed and strategic decisions. The method used to calculate the eligibility and alignment key performance indicators (KPIs) is described below.

Turnover KPI

Definition

The proportion of Taxonomy-aligned economic activities in the Group’s total turnover has been calculated as part of net turnover derived from products and services associated with Taxonomy-aligned economic activities (numerator) divided by the net turnover (denominator) for the financial year from 1.1.2024 to 31.12.2024.

The denominator of the turnover KPI is based on the consolidated net turnover in accordance with IAS 1.82(a). cf. note 4.1.9 Revenue of the Annual Financial Report for the Year 2024.

The numerator for the turnover KPI is defined as the net turnover derived from goods and services related to economic activities aligned with the Taxonomy, i.e.

▪Activity 4.1 “Electricity generation using solar photovoltaic technology” generates net turnover from supplying energy into the energy grid

▪Activity 4.3 “Electricity generation from wind power” generates net turnover from supplying energy into the energy grid

▪Activity 4.5 “Electricity generation from hydropower” generates net turnover from supplying energy into the energy grid

▪Activity 4.8 “Electricity generation from bioenergy” generates net turnover from supplying energy into the energy grid.

Activity 4.10 Storage of electricity is not included in the FY2024 turnover, as these projects are currently under construction.

Reconciliation

The consolidated net turnover can be reconciled to the consolidated financial statements, see Consolidated Statement of Comprehensive Income of our Annual Financial Report for FY2024 (“Revenue”).

Capital expenditure (CapEx)

Definition

The CapEx KPI is defined as Taxonomy-aligned CapEx (numerator) divided by the total CapEx (denominator). Total CapEx consists of additions to tangible fixed assets (IAS 16), intangible fixed assets (IAS 38), right-of-use assets (IFRS 16) and investment properties (IAS 40) during the fiscal year, before depreciation, amortization, and any re-measurements, including those resulting from revaluations and impairments, as well as excluding changes in fair value. Additions resulting from business combinations are also included. Goodwill is not included in CapEx, as it is not defined as an intangible asset in accordance with IAS 38. For further details on the accounting policies regarding CapEx, see note 4.1.3 Intangible assets and 4.1.4 Tangible assets for FY2024.

The numerator consists of the following categories of Taxonomy-eligible CapEx:

1.CapEx related to assets or processes that are associated with Taxonomy-aligned economic activities (“category A”):

TERNA ENERGY GROUP

Annual Financial Report for the Year 2024

(Amounts in thousands of Euros unless mentioned otherwise)

Assets and processes are associated with Taxonomy-aligned economic activities when they are essential components necessary to execute an economic activity. Consequently, all CapEx invested into the following areas are considered in the numerator of the CapEx KPI:

▪the solar photovoltaic plants (under activity 4.1)

▪the wind farms (under activity 4.3)

▪the hydropower plants (under activity 4.5)

▪the biogas plant (under activity 4.8)

▪the pumped hydropower storage projects (under activity 4.10)

We generally follow the generation of external revenues as a guiding principle to identify economic activities that are associated with CapEx under category A.

2.CapEx that are part of a plan (“CapEx Plan”) to upgrade a Taxonomy-eligible economic activity in order to become Taxonomy-aligned or to expand a Taxonomy-aligned economic activity (“category B”):

No specific upgrade plans have been set since there are no activities in the TERNA ENERGY Group portfolio classified as Taxonomy-eligible and non-aligned. Moreover, there are no specific plans to expand economic activities aligned with the EUT Regulation, as the Group’s core business involves electricity generation from RES.

3.CapEx related to the purchase of output from Taxonomy-aligned economic activities and individual measures enabling certain targeted activities to become low-carbon or lead to greenhouse gas reductions (“category C”).

Reconciliation

Total CapEx can be reconciled to the consolidated financial statements, see Chapter 8 Intangible Assets, 9 Rights in use of Assets and 10 Tangible Assets of our Annual Financial Report for FY 2024 (“table of changes in intangible assets, in right-of-use assets, in tangible assets”). They are the total of the movement types (acquisition and production costs):

▪Additions

▪Additions through business combinations for intangible assets, rights to use property, plant and equipment and property, plant and equipment

To avoid double counting in the capital expenditure (and operating expenditure) indicator, capital expenditure (and operating expenditure) related to purchased products and sub-measures already considered in "category a" (i.e., capital expenditure and operating expenditure related to assets or processes associated with economic activities aligned with the Taxonomy) is counted only once. Due to limited verification of individual investments by most suppliers, most aligned capital expenditures relate to activities 4.1, 4.3, 4.5, 4.8, and 4.10, and the individual assessment of capital expenditures does not have a material impact on aligned key performance indicators (KPIs).

Operating Expenditures (OpEx)

Definition

The OpEx KPI is defined as Taxonomy-aligned OpEx (numerator) divided by total OpEx (denominator). Total OpEx includes direct non-capitalized costs related to research and development, building renovation measures, short-term leases, maintenance and repair, and other direct expenditures for the day-today servicing of assets of property, plant, and equipment. This includes:

▪Research and development expenses recognized during the reporting period as detailed in the Statement of Comprehensive Income within the Annual Financial Report for 2024. In accordance with the consolidated financial statements (IAS 38.126), this includes all non-capitalized costs directly attributable to research or development activities.

▪Non-capitalized lease volumes determined under IFRS 16, covering expenses for short-term and low-value leases (refer to note 35 on Cost of sales, administrative, and research & development expenses in

The Chairman of the Board of Directors	The Chief Executive Officer	The Vice Chairman of the Board of Directors

George Peristeris	Emmanouil Maragoudakis	George Mergos