Soecietatea Energetica Electrica S.A.

Earnings Release • Feb 25, 2022

SOCIETATEA ENERGETICA ELECTRICA S.A.

Consolidated Preliminary Unaudited Financial Results

as at and for the year ended

31 December 2021

SOCIETATEA ENERGETICA ELECTRICA S.A. CONSOLIDATED PRELIMINARY STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2021

(All amounts are in THOUSAND RON, if not otherwise stated)

	Preliminary 31 December 2021 (unaudited)	31 December 2020 (audited)
ASSETS
Non-current assets
Intangible assets related to concession arrangements	5,514,557	5,455,185
Other intangible assets	8,983	7,213
Property, plant and equipment	505,419	508,130
Investments in associates	25,810	-
Deferred tax assets	83,531	19,666
Other non-current assets	1,661	1,173
Right of use assets	20,945	27,091
Total non-current assets	6,160,906	6,018,458
Current assets
Trade receivables	1,344,619	1,029,775
Other receivables	48,600	32,460
Cash and cash equivalents	221,830	570,929
Restricted cash	-	320,000
Inventories	72,958	70,066
Prepayments	5,034	2,817
Current income tax receivable	23,777	1,837
Assets held for sale	5,412	15,476
Total current assets	1,722,230	2,043,360
Total assets	7,883,136	8,061,818
EQUITY AND LIABILITIES
Equity
Share capital	3,464,436	3,464,436
Share premium	103,049	103,049
Treasury shares reserve	(75,372)	(75,372)
Pre-paid capital contributions in kind from shareholders	7	7
Revaluation reserve	102,829	116,372
Legal reserves	408,405	392,276
Retained earnings	950,228	1,759,506
Total equity attributable to the owners of the	4,953,582	5,760,274
Company
Total equity	4,953,582	5,760,274
(continued on page 2)

SOCIETATEA ENERGETICA ELECTRICA S.A. CONSOLIDATED PRELIMINARY STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2021

(All amounts are in THOUSAND RON, if not otherwise stated)

	Preliminary 31 December 2021 (unaudited)	31 December 2020 (audited)
Liabilities
Non-current liabilities
Lease liability – long term	12,102	16,875
Deferred tax liabilities	161,926	177,787
Employee benefits	149,177	143,876
Other payables	32,732	33,873
Long-term bank borrowings	118,756	400,296
Total non-current liabilities	474,693	772,707
Current liabilities
Lease liability – short term	9,442	10,747
Bank overdrafts	627,402	164,966
Trade payables	891,335	607,195
Other payables	271,263	240,946
Deferred revenue	9,662	5,629
Employee benefits	101,102	92,292
Provisions	34,922	19,238
Current income tax liability	-	9,211
Current portion of long-term bank borrowings	509,733	378,613
Total current liabilities	2,454,861	1,528,837
Total liabilities	2,929,554	2,301,544
Total equity and liabilities	7,883,136	8,061,818

Chief Executive Officer Chief Financial Officer

Georgeta Corina Popescu Stefan Alexandru Frangulea

February 25 th , 2022

SOCIETATEA ENERGETICA ELECTRICA S.A.

CONSOLIDATED PRELIMINARY STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED 31 DECEMBER 2021

(All amounts are in THOUSAND RON, except per share data)

	Preliminary 2021	2020
	(unaudited)	(audited)
Revenues	7,178,864	6,501,100
Other income	195,771	165,422
Electricity and natural gas purchased	(5,694,724)	(3,905,705)
Construction costs related to concession agreements	(485,813)	(675,967)
Employee benefits	(802,676)	(774,501)
Repairs, maintenance and materials	(102,356)	(104,577)
Depreciation and amortization	(480,830)	(490,918)
(Impairment)/ Reversal of impairment for trade and	(70,616)	62,167
other receivables, net
Other operating expenses	(343,147)	(325,104)
Operating (loss)/ profit	(605,527)	451,917
Gain from bargain purchase of subsidiaries	-	7,477
Finance income	2,647	9,651
Finance costs	(29,528)	(26,736)
Net finance cost	(26,881)	(17,085)
Share of results of associates	(3)	-
(Loss)/ Profit before tax	(632,411)	442,309
Income tax benefit/(expense)	79,529	(54,766)
(Loss)/ Profit for the year	(552,882)	387,543
(Loss)/ Profit for the year attributable to:
owners of the Company -	(552,882)	387,543
(Loss)/ Profit for the year	(552,882)	387,543
		1.14
(Loss)/Earnings per share Basic and diluted (loss)/earnings per share (RON)	(1.63)

Chief Executive Officer Chief Financial Officer

Georgeta Corina Popescu Stefan Alexandru Frangulea

February 25 th, 2022

1 Basis of accounting

These preliminary unaudited consolidated financial results are the consolidated financial results of Societatea Energetica Electrica S.A. ("Company" or "Electrica") and they include only the Consolidated statement of financial position and the Consolidated statement of profit or loss.

These annual consolidated financial results have been prepared in accordance with International Reporting Standards ("IFRS") as adopted by the European Union ("IFRS-EU").

The Company also issues an original version of the consolidated financial results prepared in accordance with IFRS-EU in Romanian language, that will be used for submitting to the Bucharest Stock Exchange, which is the original binding version.

The financial results are prepared and issued prior to the finalization of all usual internal procedures for the preparation of the annual financial reporting, as well as before concluding of the independent auditor report on the annual financial statements and as a result, differences between the preliminary consolidated financial results and the consolidated audited financial statements might occur.

These financial results are not audited or reviewed by an independent auditor and they are not a full set of financial statements in accordance with IFRS-UE.

The preliminary unaudited consolidated financial results were authorized for issuance and signed by the management on February 25 th , 2022.

Chief Executive Officer Chief Financial Officer

Georgeta Corina Popescu Stefan Alexandru Frangulea

February 25 th, 2022