C.N.T.E.E. Transelectrica

Report Publication Announcement • Feb 15, 2018

Current report according to the provisions of Law 24/2017, Regulation 1/2006 of the CNVM and the BSE Code Date of the report: February 15th , 2018 Issuer Company: National Power Grid Co. Transelectrica SA, managed under two tier system Headquarters: Bucharest 1, 33 Blvd. Magheru Working location: Bucharest 3, 2-4 Olteni Street Phone/ fax numbers: +4021 3035 611/ +4021 3035 610 Single registration code: 13328043 Number in the Commercial Register: J40/8060/2000 Share capital subscribed and paid: RON 733,031,420 Regulated market where the issued securities are traded: Bucharest Stock Exchange

Bulletin - Summary of Preliminary Financial Results 2017

Declining financial results compared to the same period of the previous year, a situation determined both by a decrease in profit from profit allowed activities (amid the reduction of the transport tariff by 10% compared to the same period last year) and especially by the recording of a significant loss corresponding to the activities carried out based on a zero profit regulatory model.

Profit allowed segment: the negative evolution of EBITDA was influenced by the decrease of transmission tariffs by 10% due to the recording of impairment adjustments for some receivables and the increase of the electricity purchase prices on the wholesale market for covering the own technological consumption within the transmission network.

Zero-profit segment: EBIT turned negative to RON - 79 mn compared to the same period of previous year (RON +88 mn) the negative evolution of 2017 being determined by the decrease of the technological system tariff by approx. 12% and the significant increase in prices on the system services market, where the Company acquired the largest part of the necessary technological services for the safe operation of the National Electricity System.

Operational indicators – consumption extracted from the network has increased over the same period of the previous year, with production and exports decreasing.

Financials		2017 prelim	2016	∆	∆ %
PROFIT ALLOWED ACTIVITIES
Charged energy volume	[TWh]	54,75	53,52	1,23	▲ 2%
Revenues	[Ron mn]	1.173	1.260	(87)	▼ 7%
Average transmission tariff	[Ron mn]	17,73	19,74	(2,01)	▼10%
Transmission revenues	[Ron mn]	1.055	1.146	(91)	▼ 8%
EBITDA	[Ron mn]	458	587	(129)	▼22%
Depreciation & Amortization	[Ron mn]	312	323	(11)	▼4%
EBIT	[Ron mn]	146	264	(118)	▼45%
ZERO-PROFIT ACTIVITIES
EBIT		(79)	88	(167)	n/a
AGGREGATED (PROFIT ALLOWED & ZERO-PROFIT)
EBIT	[Ron mn]	67	352	(284)	▼81%
Net profit	[Ron mn]	26	272	(246)	▼90%
Operational
Consumption	TWh	56,9	55,64	1,3	▲2,3%
Production	TWh	59,8	60,66	(0,9)	▼1,4%

Export TWh 6,1 7,3 (1,2) ▼16%

The report will be available starting with February 15th , 2018.

• online, on the website www.transelectrica.ro, section Investor Relations Reports Periodicals/Reports, respectively https://www.transelectrica.ro/rapoarte-2017;

• at the Company's headquarters: str. Olteni no. 2-4, sector 3, Bucharest

Georgeta-Corina POPESCU Chief Executive Officer Directorate Chairman

Andreea Georgiana FLOREA Directorate Member