C.N.T.E.E. Transelectrica

Earnings Release • Nov 15, 2017

Current report according to the provisions of Law 24/2017, Regulation 1/2006 of the CNVM and the BSE Code Date of the report: November 15th , 2017 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

Quarterly Report, Q3 2017

Decreasing financial results compared to the same period of the last year were negatively influenced by decreasing of allowed activities profit due to decreasing of transmission tariffs with 10% and mainly due to negative result registered by zero profit activities.

Profit allowed operations: negative evolution of EBITDA was influenced by decreasing of transmission tariffs with 10% and increasing of the average purchase price for electricity, necessary to cover the own technological consumption correlated with registration in company expenses of depreciation of trade receivables from energy and balancing market.

Zero-profit operations: EBIT turned negative to RON - 56 mn as compared to the same period of previous year (RON 34 mn) influenced by decreasing technological system services tariffs with 20% and by significant increase of the procurement prices of technological system services, where from, the Company acquires the necessary services for safe function of the National Energy System.

Production and consumption increased during the reported period of 2017, as compared to the same period of 2016. Operational results variances are detailed below.

Financials		9Mo 2017	9Mo 2016	∆	∆(%)
PROFIT ALLOWED ACTIVITIES
Charged energy volume	[TWh]	40.51	39.16	1.35	▲ 3%
Revenues	[Ron mn]	884	933	(49)	▼ 5%
Average transmission tariff	[Ron mn]	18.05	20.11	(2.06)	▼10%
Transmission revenues	[Ron mn]	794	852	(58)	▼ 7%
EBITDA	[Ron mn]	391	472	(81)	▼17%
Depreciation & Amortization	[Ron mn]	234	244	(10)	▼4%
EBIT	[Ron mn]	157	227	(70)	▼31%
ZERO-PROFIT ACTIVITIES
EBIT		(56)	34	(90)	n/a
AGGREGATED (PROFIT ALLOWED & ZERO-PROFIT)
EBIT	[Ron mn]	101	261	(160)	▼62%
Net profit	[Ron mn]	65	213	(148)	▼70%
Operational
Consumption	TWh	42.1	40.8	1.3	▲3%
Production	TWh	44.3	44.0	0.3	▲0.7%
Export	TWh	4.5	5.2	(0.7)	▼13%

The report will be available starting with November 15th , 2017.

• 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 Executive Director General Directorate Chairman