3Change in inventory of sales orders

The change in inventory of sales orders relates to work in progress allocated to inventories (see. Note 21).

The changes in inventory in the Market Italy segment were characterised by two opposing effects in the 2025 financial year.

On behalf of Terna, connection systems were produced for the photovoltaic systems of subsidiary Resol Ghislarengo S.r.l.; on completion, these are transferred to Terna S.p.A. at the manufacturing costs. Costs of materials amounting to CHF 6,031 thousand incurred in this connection in the year under review (prior year CHF 10,809, see Note 9) resulted in a decline in inventories.

On the other hand, the completion of customer orders for the construction of photovoltaic systems led to a decline in inventories of CHF 5,336 thousand (prior year CHF 1,283 thousand), recognised as expense.