Introduction

Senza-titolo-11_2_0.jpgThe 2009 annual report of Terna S.p.A. has been prepared in accordance with art. 154 ter of Legislative Decree no. 58/98, introduced by Legislative Decree no. 195 of November 6, 2007 (the “Transparency Decree”).

In accordance with Legislative Decree no. 38 of February 28, 2005, and in implementation of the option envisaged in (EC) Regulation no. 1606/2002, Terna has prepared the separate financial statements at December 31, 2009, in compliance with the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and endorsed by the European Commission (hereinafter the IFRS-EU).

The 2009 annual report has been prepared on a historic cost basis, modified where necessary for certain financial instruments, as well as on a going concern basis. The Company has determined that, despite the challenging economic and financial environment, it does not face material uncertainties (as defined in paragraph 25 of IAS 1) that might cast doubt on its ability to continue as a going concern.

It should be noted that, following the sale of the interest held in the subsidiary Terna Participações S.A., as described in detail in the section “Significant events” (see above), the balances related to the sale of the Brazilian companies have been reclassified in accordance with IFRS 5 - Non-current assets held for sale and discontinued operations. In particular, all cost and revenue items related to the Brazilian companies for both 2008 and 2009 have been reclassified as “Profit from discontinued operations and assets held for sale” in the income statement.