Soecietatea Energetica Electrica S.A.

M&A Activity • Jan 10, 2024

To: Romanian Financial Supervisory Authority (FSA)

Bucharest Stock Exchange (BSE)

London Stock Exchange (LSE)

Current report in compliance with the Law 24/2017 on issuers of financial instruments and market operations, ASF Regulation no. 5/2018 on issuers of financial instruments and market operations, and the Bucharest Stock Exchange Code

Report date: 10 January 2024

Company name: Societatea Energetica Electrica S.A. (Electrica)

Headquarters: 9 Grigore Alexandrescu Street, 1st District, Bucharest, Romania

Phone/fax no.: 004-021-2085999/ 004-021-2085998

Fiscal Code: RO 13267221

Trade Register registration number: J40/7425/2000

Subscribed and paid in share capital: RON 3,464,435,970

Regulated market where the issued securities are traded: Bucharest Stock Exchange (BSE) and London Stock Exchange (LSE)

Significant events to be reported: Transactions with related parties according to Art. 108 of Law No. 24/2017 concluded by Distributie Energie Electrica Romania SA (DEER) and Electrica Furnizare SA (EFSA), subsidiaries of Societatea Energetica Electrica SA (Electrica)

Electrica informs its shareholders and investors about the conclusion/execution, in the period 19 December 2023 - 9 January 2024, of some transactions between DEER and EFSA, Electrica's subsidiaries, whose cumulated value exceeds the threshold of 5% of Electrica's net assets, according to Electrica's individual financial statements at 30 September 2023, respectively exceeds the value of RON 198,760,627.

Details regarding these transactions, containing information about the date of execution, type of transaction, description of its scope, total value of the transaction, expiry date, mutual debts and receivables, guarantees, penalties, payment due dates and methods are presented in the Annex below. We mention that the invoices for the period 1 January - 9 January 2024 were issued on31 December 2023, for technical reasons.

CFO Stefan Frangulea

No	Transaction/ Agreement Type and Date	Scope of the transactions	Total amount (RON th)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
	Seller/Service provider: DEER-TN Buyer/Beneficiary: EFSA
1	19840/9Jun2021	Providing electricity distribution service by the distribution operator for users, end customers of the supplier, whose installations are connected to the electricity network of the distribution operator	68,470.35	1-Jul-21	Indefinite	0.00	In case of non-fulfillment of payment obligations within 30 days from the due date of the invoice, the supplier will pay, in addition to the amount due, a penalty interest to this amount corresponding as a percentage of interest due for non payment of obligations to the state budget), calculated for each day of delay starting with the first day after the due date until the day of payment (exclusively). The total value of the penalty interest may not exceed the value of the amount due.	The invoice is issued in the first 10 working days of the month for the previous month and is sent at the latest on the working day following the issuance of the invoice, by e-mail. Payment is made within 10 working days from the date of issuance / transmission of the invoice
2	Convention 50277/22Feb2016, AD 53229 A/20Oct2020 - Bistrita			1 Jan 2016			For delays in the payment of the invoice of more than 30 days from the due date, the lessor has the right to charge, and the lessee has the obligation to pay late payment penalties of 0.03% applied to the amount due for each calendar day of delay, starting with the first day after due date. The value of the penalties will not exceed the value of the outstanding debt
3	Convention 30728/22Feb2016, AD. 4/56021/7Oct2020 – Oradea			1 Jan 2016			For delays in the payment of the invoice of more than 30 days from the due date, the lessor has the right to charge, and the lessee has the obligation to pay late payment penalties of 0.03% applied to the amount due for each calendar day of delay, starting with the first day after due date. The value of the penalties will not exceed the value of the outstanding debt
4	Convention E12.2.59/ 8Mar2011- Oradea – utilities breakdown Oradea building -headquarters	Re-invoicing utilities expenses	32.26	1-Feb-11	31 Dec 2023	0.00	Non-payment of the invoice within 30 days from the due date authorizes the lessor to request late-payment penalties equal to the late-payment penalties due for not paying the tax obligations to the state budget in due time, applied to the amount due for each day of delay, starting with day following the due date and until the date of settlement of the amount due, exclusively. The value of the penalties may not exceed the value of the outstanding debt.	Payment is made within 10 calendar days from the date of registration of the invoice to the tenant
5	Convention 60380/22 Feb 2016, AD SM 63761A/ 16 Dec 2020 - Satu Mare			1 Jan 2016
6	Convention 1193/9 Jan 2017, AD3/21 Sept 2019 - Baia Mare			1-Jan-17			For delays in the payment of the invoice of more than 30 days from the due date, the lessor has the right to charge, and the lessee has the obligation to pay late payment penalties of 0.03% applied to the amount due for each calendar day of delay, starting with the first day after due date. The value of the penalties will not exceed the value of the outstanding debt
7	Convention 17/ 28 Feb 2019 - Cluj			1-Mar-19
8	Convention 70022/05.01.2017, AD 71117A/1267/18.07.2018 - Zalau			1 Jan 2017

Annex: Details regarding the transactions concluded by DEER with EFSA in the period 19 December 2023 - 9 January 2024 of the kind listed in Art. 108 of Law No. 24/2017

No	Transaction/ Agreement Type and Date	Scope of the transactions	Total amount (RON th)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
	Seller/Service provider: DEER-TS Buyer/Beneficiary: EFSA
9	C-19840/	Providing electricity distribution service by the distribution operator for users, end customers of the supplier, whose installations are connected to the electricity network of the distribution operator	55,719.22	1-Jul-21	Indefinite	N/A	In case of non-fulfillment of payment obligations within 30 days from the due date of the invoice, the supplier will pay, in addition to the amount due, a penalty interest to this amount corresponding as a percentage of interest due for non payment of obligations to the state budget), calculated for each day of delay	The invoice is issued in the first working days of the month for the previous month and is sent at the latest on the working day following the issuance of the invoice, by e-mail. Payment is made within 10 working days from the date of issuance / transmission of the invoice
10	9Jun2021	Providing electricity distribution service by the DO for users, end customers of the supplier, whose installations are connected to the electricity network of the DO - other services as DO	182.60	1-Jul-21	Indefinite		starting with the first day after the due date until the day of payment (exclusively). The total value of the penalty interest may not exceed the value of the amount due.	Payment is made within 10 working days from the date of issuing/sending the invoice.
11	C-1345/I/7000/23Jan2019 and AD 87 / 31Jul2023	Re-invoicing space rents	17.27	1 Jan 2019	31-Dec-23	N/A	In case of non-fulfilment of the payment obligations on the due date, the Tenant is obliged to pay, as penalties, an amount equivalent to 0.02% of the amount not paid on time, for each day of delay, starting from the next day of the due date until the date of actual payment.	Payment is made within 10 working days from the date of registration of the invoice by the tenant.
12	C 22/15Feb2018 C 61/04Apr2018 C 1466/27Mar2018 AD1 for C 22/15Feb2018 AD2 for C 22/15Feb2018 AD3 for C 22/15Feb2018 AD4 for C 22/15Feb2018 AD5 for C 22/15Feb2018 AD6 for C 22/15Feb2018 AD7 for C 22/15Feb2018	Providing the representation service as the Party Responsible for Balancing	2,213.55	15-Feb-18	Indefinite	N/A	Art. 16.1 If, due to its exclusive fault, the Provider fails to fulfill its obligations undertaken through the contract, the Purchaser has the right to deduct from the tariff established by the contract, an amount equal to a percentage of 1.5% of the established tariff conf of Annex 2. Art 16.2 If the Purchaser does not fulfill any payment obligation arising from the Contract, he has the obligation to pay as penalties an amount equivalent to a percentage of the unpaid payment. The percentage rate for each day of delay is the interest due for non-payment of obligations for the state budget. Art 16.3 The same penalties as those stipulated in art 16.2 will be charged for any sums owed by the Purchaser based on the contract.	The invoice will be paid by the provider/purchaser within 3 (three) financial days from the date of its receipt
13	C3215/11Jul2023	IT & C user support services, cyber security services, telecommunications services, IT & C infrastructure management services	6.78	11-Jul-23	11-Jul-24	N/A	See Note 4	Payment is made within 30 calendar days from the date of registration of the invoice at the registry of the beneficiary
		Income from providing IT&C 0.96 11 Jul 2023 services		11-Jul-24	N/A		The beneficiary will pay for the services rendered within 30 calendar days from the date of registration of the invoice at the beneficiary's registry.
14	Transaction from 10 Nov 2023	Providing IT & C services by DEER	1.72	10 Nov 2023		N/A		EFSA will pay for the services rendered within 30 calendar days from the closing of the Transaction

No	Transaction/ Agreement Type and Date	Scope of the transactions	Total amount (RON th)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
15	request no. 7010231242989	Technical approval for connection related to request no. 7010231242989 for the purpose of electric vehicle charging station located in BRASOV	0.07	20 Dec 2023
						Seller/Service provider: DEER-MN Buyer/Beneficiary: EFSA
16	C-19840/	Providing electricity distribution service by the distribution operator for users, end customers of the supplier, whose installations are connected to the electricity network of the distribution operator	81,268.30	1-Jul-21	Indefinite	N/A	0.02% (penalty interest as a percentage of the interest due for non-payment of obligations to the state budget on time), calculated for each day of delay starting with the first day after the due date until the day of payment (exclusively). There	Payment is made in 10 working days from the date of receipt of the invoice.
17	9Jun2021	Providing electricity distribution service by the DO for users, end customers of the supplier, whose installations are connected to the electricity network of the DO - other services as DO	0.27	1-Jul-21	Indefinite	N/A	is a 30 calendar day grace period.	Payment is made within 30 days from the date of issuing the invoice.
18	2630/ 1Mar2018	Reinvoicing common expenses (security services)	0.65	1-Mar-18	Indefinite	N/A	0.01% of the amount not paid on time, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusively)	Payment is made within 30 calendar days from the date of issuing the invoice
19	C37109/2022	Reinvoicing common expenses	0.34	1-Mar-19	31-Dec-23	N/A	0.02% of the amount not paid on time, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusively)	Payment is made within 30 calendar days from the date of issuing the invoice

No	Transaction/ Agreement Type and Date	Scope of the transactions	Total amount (RON th)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
	Seller/Service provider: EFSA Buyer/Beneficiary: DEER
20	Ctr. 22/15Feb2018 AD 4/16Dec2019 AD 5/31Dec2020 AD 6/1Feb2021 AD 7/3Jun2021	Providing the representation service as Balancing Responsible Party	24,678.47	1-Jan-18	31Dec2022 with automatic extension for periods of 12 months according to AD 4/16Dec2019	N/A	If, through his sole fault, the Provider fails to fulfill its obligations under the contract, the Buyer has the right to deduct from the tariff established by the contract, as penalties, an amount equivalent to a percentage of 1% of the monthly tariff established.	Payment is made within 3 working days from the date of receipt of the invoice
21	Convention 72/34/26Jan2017 - Cluj Convention 13/02Feb2017 - Gherla Convention 21/18Feb2010 - Oradea AD1/13Jul2018 AD2/01Mar2019 AD4/13Feb2019 la Rental contract 885/31Dec2015 AD3/31Aug2022	Reinvoicing common expenses	1.30	1-Jan-17	31-Dec-23	N/A	For delays in the payment of the invoice greater than 30 days from the due date, the lessor has the right to charge, and the lessee has the obligation to pay, late penalties in the amount of 0.03% applied to the amount due, for each day delay calendar, starting with the first day after the due date. The amount of the penalties cannot exceed the amount of the outstanding debt.	Payment is made within 10 days from the date of registration of the invoice to the Tenant
22	Contract 876/31Dec2015, AD 3/18 Jan 2019 Reinvoicing utilities acc. Annex 2 Bv	Reinvoicing common expenses	23.94	1-Jan-16	31-Dec-23	N/A	In case of non-fulfillment of the payment obligations on the due date, the Tenant has the obligation to pay, as penalties, an amount equivalent to 0.02% of the amount not paid on time for each day of delay	The payment of the invoice will be made by bank transfer within 10 working days from the date of registration of the invoice by the tenant

No	Transaction/ Agreement Type and Date	Scope of the transactions	Total amount (RON th)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
23	Contract 822 / 04 Oct 2021	Re-invoicing - energy quota for pensioners; Electricity countervalue granted to individuals benefiting from the provisions of HG.1041/2003 and HG.1461/2003	0.55	1-Aug-07	See Note 2	N/A	Art. 4.1.5. If the payer does not pay the counter value of the invoices within 30 days from the established due date, he owes the provider penalties equal to the level of interest charged for the late payment of debts to the state budget for each day of delay after the due date and until payment in full, including the day of payment. The amount of the penalties cannot exceed the amount paid. Art 5.1.2. If the provider does not fulfill its assumed obligation to send the invoice to the payer within 3 days, the payer has the right to calculate damages - interests equal to the amount equivalent to the share of 0.1% of the contract value (of the settlement invoice ) related to the month in which non-fulfilment was found, for each day of delay, until the actual fulfillment of the obligation, but not more than this value.	The payment of the issued invoices will be made, through legal instruments, within 30 days from their registration by the beneficiary.
24	AD 11 / 30Jun2023 at Electricity suply contract 189 / 27.03.2017	Extension of the electricity supply contract on the competitive active energy market, with a fixed value	763.96	1-Jun-17	31-Dec-23	See Note 1	Non-payment by the beneficiary of the invoice within 30 calendar days of the counter value of the invoices from the due date (set at 10 banking days from the date of issue), the beneficiary owes the supplier penalties equal to the interest due for non-payment on the ground of budgetary obligations for each day of delay , starting with the 16th day from the due date and until the full payment of the invoice. The value of the penalties cannot exceed the value of the invoice.	The payment of the issued invoices will be made through legal instruments. The due date is 10 banking days from the date of the invoice. Grace period 30 calendar days from the due date

207,911.59 25,468.22 233,379.81

Total executed during reporting period 19 December 2023 - 9 January 2024: RON 233,382.54 th Due and not due mutual debts of EFSA to DEER at 8 January 2024: RON 992,822.64 th Due and not due mutual debts of DEER to EFSA at 8 January 2024: RON 3,951.83 th

Note 1 Note 2 Note 3 Note 4 Art.15.2 - Failure by the beneficiary to pay the invoices issued by the service provider within the established term, of the obligations provided for in art.15.l., shall entail the obligation of the service provider to pay penalties in the amount and under the conditions established in art.19 of the contract. Art 19.1 - If the service provider, through its own fault, fails to fulfil its obligations under the contract, then the beneficiary is entitled to claim, as penalties, an amount equivalent to a percentage rate of 0.03% for each day of delay, applicable to the value of the services not provided. Art 19.2 - If the beneficiary does not honour the invoices issued by the supplier within the time limits provided for in clause 15.l, then the provider is entitled to claim penalties of 0.03% per day of delay, calculated on the value of the amount not paid. The supplier can condition the resumption of the electricity supply on the establishment of guarantees, if the customer does not pay the invoice and the due penalties in full within 15 days from the date of interruption of the electricity supply. According to the address from DEER 172727/ 12 Jul 2022, Contract 822/ 4 Oct 2021 was terminated citing a Decision of the High Court of Cassation and Justice 3807/2022. Consumption will continue to be billed until 30 June 2022. A guarantee is established in the event that the buyer registers 5 days late payment, for 3 consecutive months. The value of the guarantee will represent the equivalent of 60 contractual days to which excise duties and VAT are added.