3 Change in inventory of sales orders

The change in inventory of sales orders relates to work in progress in inventories. The balance reported for 2024 is mainly attributable to the Market Italy segment, while the balance reported for 2023 relates to the Market Switzerland and Market Italy segments in almost equal measure.

The changes in inventory in 2024 include income of CHF 10,809 thousand in the Market Italy segment relating to the capitalisation of connection systems within inventories (see Note 21). These systems are being built on behalf of and for Terna in connection with the construction of subsidiary Resol Ghislarengo S.r.l.’s photovoltaic installations. Given that costs of materials were recognised in the same amount (see Note 9), the production of these connection systems has no effect on group earnings.