C.N.T.E.E. Transelectrica

Earnings Release • Nov 15, 2016

Current report according to the provisions of Law 297/2004, Regulation 1/2006 of the CNVM and the BSE Code Date of the report: November 15, 2016 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: 733,031,420 RON Regulated market where the issued securities are traded: Bucharest Stock Exchange

Quarterly Report, Q3 2016

The decreasing results compared to last year were mainly caused by diminished transmission tariffs that were reweighted between the two components applied to the output supplied in the grid, respectively the consumption taken out of it, against the background of slightly decreasing domestic electricity consumption and reduced output, resulting from lower electricity exports.

Profit allowed operations: year-to-date EBITDA decreased by 23% from lei 611 mil in 2015 to lei 472 mil as a result of diminished revenues lower by 12.3% compared to 2015. Operational cost slightly increased by 2%.

Zero-profit operations: EBIT turned positive to lei 34 mil compared to last year result (- lei 13 mil). Related operational cost well below last year results lei 1,393 mil compared to lei 1,618 mil, whilst revenues year-to-date registered lei 965 mil.

	U.M.	T3 2016	T3 2015	∆
Financials
PROFIT ALLOWED ACTIVITIES
Charged energy volume	[TWh]	39.16	38.90	▲0.7%
Revenues	[lei mil]	933	1,064	▼12.3%
Average transsmission tariff	[lei mil]	20.11	22.86	▼ 12%
Transmision revenues	[lei mil]	852	972	▼12%
EBITDA	[lei mil]	472	611	▼23%
Depreciation & Amortization	[lei mil]	-244	-239	▲2.2%
EBIT	[lei mil]	228	372	▼38.8%
ZERO-PROFIT ACTIVITIES
EBIT		34	(13)	▲349%
AGGREGATED (PROFIT ALLOWED & ZERO-PROFIT)
EBIT		261	358	▼27.1%
Net Income	[lei mil]	213	305	▼29.9%
Operations
Consumption	TWh	40.6	40.8	▼0.3%
Production	TWh	43.9	45.5	▼3.6%
Net Export	TWh	3.3	4.8	▼31.25%

The report will be available starting with 15 November 2016.

• online, on the website www.transelectrica.ro, section Investor Relations Reports Periodicals/Reports, respectively https://www.transelectrica.ro/rapoarte-2016;

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

Ion-Toni TEAU Executive Director General Directorate Chairman