C.N.T.E.E. Transelectrica

Earnings Release • Nov 15, 2018

To the: Bucharest Stock Exchange – Department of Operations Issuers Regulated Markets Financial Supervision Authority - General Directorate Supervision - Issuers Division

Current report as per the provisions of Regulation 5/2018 of ASF and the BVB Code Date of the report: 15 November 2018

Name of Issuer Company: CNTEE TRANSELECTRICA SA, Company Managed under Two-tier System

Headquarters: Bucharest 1, Blvd. Magheru no. 33

Working location: Bucharest 3, Str. Olteni no. 2-4

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 Lei LEI Code: 254900OLXCOUQC90M036

Regulated market where the issued securities are transacted: Bucharest Stock Exchange

Important event to report: – Summary of financial results for the first 9 months of 2018 Such report includes:

• Report on the activities of CNTEE Transelectrica SA during January-September 2018
• Simplified stand-alone intermediary financial statements non-audited on 30 September 2018

The segment of profit allowed operations: the increase of the billed volume in 9M 2018 as compared to 9M 2017 has not entirely covered the 5% decrease in the average transmission tariff, resulting in a 4% diminuation in total revenue (a decrease unbalanced by the increase in the tariff valid from July 1st 2018). Considering the 17,7% growth in the amount of electricity needed to cover our own technological consumption in the RET, OTC costs were higher by 14.6%. Factors not under the control of the Company and significantly influencing the OTC at 9M 2018 were the precipitation and distribution of cross-border physical flows.

The zero profit operations: registered a negative result but in a positive evolution with respect to the same period of 2017, driven by an increase in revenues from technological system services with 8%, of billed volume and the average tariff approved by ANRE, while the related expenditures registered a reduction of 1%.

	U.M.	9M 2018	9M 2017	∆
Financiar
Billed volume	[TWh]	41.27	40.51	▲ 1.87%
PROFIT ALLOWED ACTIVITIES
Total revenue	[RON mn]	852	884	▼ 4%
Average transmission tariff (achieved)	[RON/MWh]	17.23	18.05	▼ 5%
Revenues from transmission and other activities on the energy market	[RON mn]	771	794	▼ 3%
EBITDA	[RON mn]	354	391	▼ 9%
Depreciation	[RON mn]	226	234	▼ 3%
EBIT	[RON mn]	128	157	▼ 18%
PASS-THROUGH OPERATIONS
EBIT	[RON mn]	-14	-56	▲75%
ALL ACTIVITIES (Profit Allowed and Pass-Through Operations)
EBIT	[RON mn]	114	101	▲ 13%
Net profit	[RON mn]	98	65	▲ 51%
Operational
Consumption	[TWh]	43.0	42.1	▲ 2%

Production [TWh] 45.5 44.3 ▲ 3% Export [TWh] 4.2 4.5 ▼ 7%

The report on CNTEE Transelectrica SA activities in January-September 2018 and the Simplified stand-alone intermediary financial statements non-audited on 30 September 2018 are available beginning with 15 September 2018.

Online, on the website www.transelectrica.ro, section Investor Relations Periodical Reports / Reports, namely https://www.transelectrica.ro/rapoarte-2018;

At Company location: str. Olteni no. 2-4, Bucharest 3

Adrian-Constantin RUSU Executive Director General Directorate Chairman

Andreea Georgiana FLOREA Directorate Member