C.N.T.E.E. Transelectrica

Related Party Transaction • Aug 23, 2021

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

Current report as per the provisions of article 108 of Law 24/2017* Date of the communiqué: August 23, 2021 Name of Issuer Company: CNTEE TRANSELECTRICA SA, company managed by two-tier system Headquarters: Blvd. Gheorghe Magheru 33, Bucharest 1 Working location: Str. Olteni 2-4, Bucharest 3 Phone / fax numbers: 021 30 35 611/021 30 35 610 Single registration code: 13328043 LEI Code: 254900OLXCOUQC90M036 Number in the Trade Register: J40/8060/2000 Share capital subscribed and paid: 733.031.420 RON Regulated market where the issued securities are transacted: Bucharest Stock Exchange

Event to report: Reporting a significant transaction with a related party pursuant to art. 108 of Law no. 24/2017, republished

National Power Grid Company Transelectrica S.A. informs shareholders and investors on the Supervisory Board's approval of a significant transaction with a related party whose value represents more than 5% of the company's net assets according to the latest stand-alone financial reports published by the issuer (stand-alone financial statements of NPG Co. Transelectrica SA as of June 30, 2021).

Contract: The transaction concerns the conclusion of the contract having as object "Strategic services/works in the facilities managed by NPG Co. Transelectrica S.A.", with a 36-month performance period.

Parties: National Power Grid Company Transelectrica S.A. - as a purchaser; Company for Maintenance Services to the Electricity Transmission Grid SMART S.A. - as a provider, being a related party as a subsidiary, controlled by the Company with a share of 100% of the share capital.

Contract subject: Strategic services/works in the facilities managed by NPG Co. Transelectrica S.A. in connection with the maintenance activity carried out in the Company according to the provisions of its own Maintenance Assurance Program (PAM) and the "Preventive Maintenance Regulation for PTG installations and equipment", documents prepared based on ANRE Order no. 96/2017 approving the Regulation on maintenance activity's organisation, as well as to the provisions of other specific regulations in force (prescription,

LANGUAGE DISCLAIMER: This document represents the English version of the original official Romanian document filed with the Financial Supervisory Authority ASF. The English version has been created for English readers' convenience. Reasonable efforts have been made to provide an accurate translation, however, discrepancies may occur. The Romanian version of this document is the original official document. Any discrepancies or differences created in the translation are not binding. If any questions arise related to the accuracy of the information contained in the English version, please refer to the Romanian version of the document which is the official version.

internal technical norms, technological sheets etc.).

Contract value: 227,340,891.23 lei VAT free.

Established guarantees: The Contract's performance bond is established according to law, in one of the forms provided in art. 46 of GD 394/2016, for the value of 11,367,044.56 lei, representing 5%, of the Contract's total value, VAT free.

Other information: The Contract is strictly needed, so that the Company's activity is carried out in economic efficiency conditions, but also of safe operation of the National Power System (NPS).

Within the Company, the maintenance activity is carried out in accordance with ANRE regulations (maintenance expenses being recognized by ANRE within the transmission tariff) and specific norms in force, namely its own Maintenance Assurance Program (PAM), which establishes the strategy, medium and long term objectives, performance criteria in maintenance activity.

According to the updated Law no. 123/2012 on electricity and natural gas, the non-compliance by the transmission system operator with the maintenance programs, at the terms and under the conditions established by ANRE regulations, is sanctioned with a fine between 5% and 10% of annual turnover.

Contract award procedure: competitive negotiation, according to art. 82 para. (1) let. c) of Law 99/2016 on sectoral procurement, with later amendments and additions.

The contract award criterion was "best price-quality ratio".

The publicity was ensured by the publication of the contract notice:

• o on www.e-licitatie.ro contract notice CN1029639/ 31.03.2021,
• o on http://ted.europa.eu contract notice published in JOUE under no. 2021/S 063-161291 of 31.03.2021.

The procedure was selected for ex-ante control by ANAP. By Clearance Decision no. 6036/02.04.2021 issued by ANAP in accordance with the provisions of art. 2 para. (2) and (3) of Annex 1 to GD no. 419/2018, the team for the ex-ante control of the contract award procedure was appointed.

It was subject to verification of quality and regularity control, so that during the course of the procedure a number of 8 unconditional opinions on compliance were issued.

Mutual receivables: 33,172,719 lei - works / services provided by SMART, according to the contracts in force, during 01.01.2021-30.06.2021.

330,227 lei – re-invoicing issued to SMART during the period 01.01.2021-30.06.2021.

Note: The amounts presented are as reported in the Separate Interim Financial Statements on 30.06.2021.

Payment terms: Payment will be made within a maximum of 30 days from the registration with the Contracting Entity of the original invoice and the minutes of receipt of the services/works, in the original, signed by the Contractor and accepted by the Contracting Entity.

Bogdan TONCESCU Adrian MORARU

Executive Director General Directorate Chairman

Directorate Member