Soecietatea Energetica Electrica S.A.

M&A Activity • Aug 25, 2022

To: Romanian Financial Supervisory Authority (FSA)

Bucharest Stock Exchange (BSE)

London Stock Exchange (LSE)

Current report in compliance with the Law 24/2017 on issuers of financial instruments and market operations, FSA Regulation no. 5/2018, and the Bucharest Stock Exchange Code

Report date: 25 August 2022

Company name: Societatea Energetica Electrica S.A. (Electrica)

Headquarters: 9 Grigore Alexandrescu Street, 1st District, Bucharest, Romania

Phone/fax no.: 004-021-2085999/ 004-021-2085998

Fiscal Code: RO 13267221

Trade Register registration number: J40/7425/2000

Subscribed and paid in share capital: RON 3,464,435,970

Regulated market where the issued securities are traded: Bucharest Stock Exchange (BSE) and London Stock Exchange (LSE)

Significant events to be reported: Transactions with related parties according to Art. 108 of Law No. 24/2017 concluded by Distributie Energie Electrica Romania SA (DEER) and Electrica Furnizare SA (EFSA), subsidiaries of Societatea Energetica Electrica SA (Electrica)

Electrica informs its shareholders and investors about the conclusion, on 24 August 2022, of one transaction between DEER and EFSA, Electrica's subsidiaries, that have a value that, cumulated with the rest of the transactions concluded/executed in the period 13 July – 24 August 2022 exceeds the threshold of 5% of Electrica's net assets, according to Electrica's individual financial statements for 2021, respectively exceeds the value of RON 206,175,420.

Details regarding the transaction concluded in the period 13 July – 24 August 2022, which cumulatively meet the requirement provided in art. 108 of Law no. 24/2017, respectively leed to exceeding the threshold of 5% of Electrica's net assets, according to Electrica's individual financial statements for 2021, are presented in the Annex of this report. This Annex contais information about the date of execution, type of transaction, description of its scope, total value of the transaction, expiry date, mutual debts and receivables, guarantees, penalties, payment due dates and methods.

Chief Executive Officer Alexandru-Aurelian Chirita

	Transaction/ Agreement Type and Date	Scope of the transactions	Total amount (RON th)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
	Seller/Service provider: DEER-TN Buyer/Beneficiary: EFSA
1	19840/9Jun2021	Providing electricity distribution service by the distribution operator for users, end customers of the supplier, whose installations are connected to the electricity network of the distribution operator	42,278.20	1-Jul-21	Indefinite	0.00	In case of non-fulfillment of payment obligations within 30 days from the due date of the invoice, the supplier will pay, in addition to the amount due, a penalty interest to this amount corresponding as a percentage of interest due for non-payment of obligations to the state budget), calculated for each day of delay starting with the first day after the due date until the day of payment (exclusively). The total value of the penalty interest may not exceed the value of the amount due.	The invoice is issued in the first 10 working days of the month for the previous month and is sent at the latest on the working day following the issuance of the invoice, by e-mail. Payment is made within 10 working days from the date of issuance / transmission of the invoice
2		Providing electricity distribution service by the distribution operator for users, end customers of the supplier, whose installations are connected to the electricity network of the distribution operator - other services as DO	52.99				In case the supplier does not pay the invoices related to the RED intervention services within 30 days from the due date, the DO will claim late penalties of 0.01% for each day of delay, calculated on the unpaid amount, starting with the first day after the due date, until the day of payment (exclusively). The value of the penalties cannot exceed the amount owed	Payment is made within 30 calendar days from the date of issuing the invoice
3	Convention 50277/22Feb2016, AD 53229 A/20Oct2020 - Bistrita			1 Jan 2016			For delays in the payment of the invoice of more than 30 days from the due date, the lessor has the right to charge, and the lessee has the obligation to pay late payment penalties of 0.03% applied to the amount due for each calendar day of delay, starting with the first day after due date. The value of the penalties will not exceed the value of the outstanding debt

Annex: Details regarding the transactions concluded by DEER with EFSA in the period 13 July - 24 August 2022 of the kind listed in Art. 108 of Law No. 24/2017

	Transaction/ Agreement Type and Date	Scope of the transactions	Total amount (RON th)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
4	Convention 30728/22Feb2016, AD. 4/56021/7Oct2020 – Oradea			1 Jan 2016			For delays in the payment of the invoice of more than 30 days from the due date, the lessor has the right to charge, and the lessee has the obligation to pay late payment penalties of 0.03% applied to the amount due for each calendar day of delay, starting with the first day after due date. The value of the penalties will not exceed the value of the outstanding debt
5	Convention E12.2.59/8Mar 011- Oradea – utilities breakdown Oradea building - headquarters	Re-invoicing utilities expenses	30.43	1-Feb-21	31 Dec 2023	0.00	Non-payment of the invoice within 30 days from the due date authorizes the lessor to request late-payment penalties equal to the late-payment penalties due for not paying the tax obligations to the state budget in due time, applied to the amount due for each day of delay, starting with day following the due date and until the date of settlement of the amount due, exclusively. The value of the penalties may not exceed the value of the outstanding debt.	Payment is made within 10 calendar days from the date of registration of the invoice to the tenant
6	Convention 60380/22 Feb 2016, AD SM 63761A/ 16 Dec 2020 - Satu Mare			1 Jan 2016
7	Convention 1193/9 Jan 2017, AD3/21 Sept 2019 - Baia Mare			1-Jan-17			For delays in the payment of the invoice of more than 30 days from the due date, the lessor has the right to charge, and the lessee has the obligation to pay late payment penalties of 0.03% applied to the amount due
8	Convention 17/ 28 Feb 2019 - Cluj			1-Mar-19			for each calendar day of delay, starting with the first day after due date. The value of the penalties will not exceed the value of the outstanding debt
9	Convention 70022/05.01.2017, AD 71117A/1267/18.07. 2018 - Zalau			1 Jan 2017

	Transaction/ Agreement Type and Date	Scope of the transactions	Total amount (RON th)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
	Seller/Service provider: DEER-TS Buyer/Beneficiary: EFSA
10	C-19840/ 9Jun2021	Providing electricity distribution service by the distribution operator for users, end customers of the supplier, whose installations are connected to the electricity network of the distribution operator	40,505.27	1-Jul-21	Indefinite	N/A	In case of non-fulfillment of payment obligations within 30 days from the due date of the invoice, the supplier will pay, in addition to the amount due, a penalty interest to this amount corresponding as a percentage of interest due for non-payment of obligations to the state budget), calculated for each day of delay starting with the first day after the due date until the day of payment (exclusively). The total value of the penalty interest may not exceed the value of the amount due	The invoice is issued in the first working days of the month for the previous month and is sent at the latest on the working day following the issuance of the invoice, by e-mail. Payment is made within 10 working days from the date of issuance / transmission of the invoice
11		Providing electricity distribution service by the DO for users, end customers of the supplier, whose installations are connected to the electricity network of the DO - other services as DO	37.69	1-Jul-21	Indefinite			Payment is made within 10 working days from the date of issuing/sending the invoice.
12	C 1345/I/7000/23Jan2 019 and AD7 / 1May2022	Reinvoicing space rents	43.82	1-Jan-19	31-Dec-23 N/A		In case of non-fulfillment of the payment obligations on the due date, the Tenant has the obligation to pay, as penalties, an amount equivalent to 0.02% of the amount not paid on time, for each day of delay, starting with the next day of the due date until the date actual payments	Payment is made within 10 working days from the date of registration of the invoice by the tenant
13	C 22/15Feb2018 C 61/4Apr2018 C 1466/27Mar2018 AD1 la C22/15Feb2018 AD2 la C22/15Feb2018 AD3 la C22/15Feb2018 AD4 la C22/15Feb2018 AD5 la C22/15Feb2018 AD6 la C22/15Feb2018 AD7 la C22/15Feb2018	Providing the representation service as Balancing Responsible Party	19,557.91 15-Feb-18		Indefinite	N/A	Art. 16.1 If due to his sole fault the Provider fails to fulfill its obligations under the contract, the Purchaser has the right to deduct from the tariff established by the contract an amount equal to a percentage of 1.5% of the tariff established according to Annex 2. Art 16.2 If the Purchaser does not fulfill any payment obligation arising under the Contract, he has the obligation to pay as penalties an amount equivalent to a percentage of the unpaid payment. The percentage for each day of delay is that of the interest due for not paying on time the obligations for the state budget. Art 16.3 The same penalties will be charged for any amounts due by the Purchaser based on the contract.	Art. 13.3 The invoice will be paid by the provider / purchaser within 3 financial days from the date of its receipt

	Transaction/ Agreement Type and Date	Scope of the transactions	Total amount (RON th)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
	Seller/Service provider: DEER-MN Buyer/Beneficiary: EFSA
14	19840/9Jun2021	Providing electricity distribution service by the distribution operator for users, end customers of the supplier, whose installations are connected to the electricity network of the distribution operator	98,031.72	1-Jul-21	Indefinite	N/A	0.02% (penal interest corresponding to the interest due for non-payment of obligations to the state budget on time), calculated for each day of delay starting with the first day after the due date until the day of payment (exclusively). There is a 30 calendar day grace period	Payment is made in 10 working days from the date of receipt of the invoice
15		Providing electricity distribution service by the distribution operator for users, end customers of the supplier, whose installations are connected to the electricity network of the distribution operator - other services as DO	58.33	1-Jul-21				Payment is made within 30 days from the date of issuing the invoice.
16	2630/1Mar2018	Re-invoicing common expenses (security services)	0.11	1-Mar-18	Indefinite	N/A	0.01% of the amount not paid on time, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive). The value of the penalties may not exceed the amount due	Payment is made within 30 calendar days from the date of registration of the invoice by the beneficiary
17	10335/1Aug2007	Income from re invoicing common expenses	16.63	1-Aug-07	Indefinite	N/A	For delays in paying the invoices, the beneficiary will pay penalities of 0.01%/day of delay, starting with the first day after the due date until the day of payment (exclusive)	Payment is made within 30 days from the date of registration of the invoice by the beneficiary
	18 C37109/28Feb2022	Re-invoicing common expenses	1.27	1-Mar-19	31-Dec-23	N/A	For delays in paying the invoices, the beneficiary will pay penalities of 0.02%/day of delay, starting with the first day after the due date until the day of payment (exclusive)	Payment is made within 30 days from the date of registration of the invoice by the beneficiary

	Transaction/ Agreement Type and Date	Scope of the transactions	Total amount (RON th)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
	Seller/Service provider: EFSA Buyer/Beneficiary: DEER-TN
1	Ctr. 22/15Feb2018 AD 4/16Dec2019 AD 5/31Dec2020 AD 6/1Feb2021 AD 7/3Jun2021	Providing the representation service as Balancing Responsible Party	13,733.23	1-Jan-18	31Dec2022 with automatic extension for periods of 12 months according to AD 4/ 16Dec2019	0	If, through his sole fault, the Provider fails to fulfill its obligations under the contract, the Buyer has the right to deduct from the tariff established by the contract, as penalties, an amount equivalent to a percentage of 1.5% of the monthly tariff established.	Payment is made within 3 working days from the date of receipt of the invoice
2	Convention 72/26Jan2017, AA 2/1Mar2019 reffering to Rental services contract 885/31Dec2015	Re-invoicing common expenses	4.20	1-Jan-17	31-Dec-23	0	For delays in the payment of the invoice for more than 30 days from the due date, the lessor has the right to charge, and the lessee has the obligation to pay, delay penalties of 0.03% applied on the amount due, for each calendar day of delay, starting with the first day after the due date. The value of the penalties may not exceed the value of the outstanding debt.	Payment is made within 10 days from the date of registration of the invoice
3	Convention 13/2Feb2017 ref. to rental services contract 885/31Dec2015		0.52	1-Jan-17	31-Dec-23	0	N/A	with the tenant
4	Convention 21/ 18Feb2010	Re-invoicing utilities expenses	0.08		19-Jan-10 Indefinite	0	Failure to pay the invoice within 10 days from the due date, authorizes the Owner to receive late-payment penalties equal to the level of late-payment penalties charged by Compania de Apa Oradea, applied to the amount due for each day of delay, starting with the day after the due date and until the date of settlement of the amount due, exclusively.	The due date of the invoice is 10 days from the date of registration of the invoice at DEER-TN Oradea.
	Seller/Service provider: EFSA Buyer/Beneficiary: DEER-TS
5	876/31Dec2015, AD 3/18 an2019 Re-invoicing utilities expenses cf Annex 2	Re-invoicing utilities expenses	12.32	1-Jan-16	31-Dec-23	0	In case of failure to pay the obligations on the due date, the tenant has the obligation to pay, as penalties, an amount equivalent to 0.02% of the amount not paid on time, for each day of delay, starting with the day after the due date, until on the date of actual payment.	Payment of the invoice will be made by transfer within 10 working days from the date of registration of the invoice by the tenant

Total executed during reporting period 13 July 2022 - 24 August 2022: RON 214,364.74 th. Due and not due mutual debts of EFSA to DEER at 23 August 2022: RON 313,148.44 th Due and not due mutual debts of DEER to EFSA at 23 August 2022: RON 10,118.84 th