C.N.T.E.E. Transelectrica

Report Publication Announcement • Nov 15, 2019

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

Communique according to the provisions of Law 24/2017, Regulation 5/2018 of ASF and BVB Code

Report date: November 15, 2019

Name of Issuer Company: NPG TRANSELECTRICA SA, Managed under Two-Tier System

Registered office: Boulevard Gheorghe Magheru 33, Bucharest 1

Working location: Str. Olteni 2-4, Bucharest 3

Phone / fax numbers:004 021 303 5611/ 021 303 5610

Unique registration code: 13328043

Number in the Commercial Register: J40/8060/2000

Share capital subscribed and paid: 733.031.420 RON

LEI code: 254900OLXCOUQC90M036

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

Reporting includes:

• Semestrial report about the activities of NPG Transelectrica SA in January-September 2019

• Stand-alone interim simplified financial statements non-audited on 30 September 2019

Important event to report: – Summary of financial results from Q3 2019

Segment of profit-allowed activities: In the area of main business (transmission and SEN dispatching) at 9M 2019 compared to the same period of 2018, the increase of total revenues and the average tariff for the transport service did not mitigate the efect of the 8% decrease of EBITDA, the decrease due mainly to increasing the average prices of electricity purchase to cover its own tehnological consumption in the transport network, EBITDA being negatively influenced in the first 9M of 2019.

Transmission revenues and other activities on the energy market registred an increase of +5% due to the increase of realizated transport tariff (+4%) in 9M 2019 compared to 9M 2018 and an increase with +10.7 milion Lei from interconnection revenues, such increases were mainly determined by higher regulated tariffs applicable in the reporting period.

The context January-September 2019 was difficult, characterised by higher costs for transmission system operation, especially the electricity procurement costs to compensate technical losses in the grid (OTC) significantly 22% higher, although physical technical losses were fewer than last year (2.29% technical losses at 9M 2019 compared to 2.55% - 9M 2018).

Segment zero profit activities: At 9M 2019 temporary financial loss was recorded of -26 million Lei in comparison with -14 million Lei registered at 9M 2018. In January - September 2019 revenues from technological system services were lower compared to the expenses made to procure technological system services. The decrease is determined by a diminished tariff approved by ANRE for such services, but also by greater expenses regarding technological system services when procurement prices increased for such services on the competitive market, restoration reserve and the replacement reserve, in comparison with the same period last year..

	M.U.	9M 2019	9M 2018	∆
Financial
Charged energy volume	[TWh]	41.29	41.27	▲ 0.1%
PROFIT ALLOWED ACTIVITIES
Total revenues	[RON mn]	907	852	▲ 6%
Average transmission tariff (achieved)	[RON/MWh]	17.89	17.23	▲ 4%
Transmission revenues and from other activities on the energy market	[RON mn]	809	771	▲ 5%
EBITDA	[RON mn]	325	354	▼ 8%
Amortisement	[RON mn]	210	226	▼ 7%
EBIT	[RON mn]	116	128	▼ 10%
ZERO PROFIT ACTIVITIES
EBIT	[RON mn]	(26)	(14)	▼ 84%
ALL ACTIVITIES (PROFIT ALLOWED AND ZERO PROFIT)
EBIT	[RON mn]	89	114	▼ 22%
Net profit	[RON mn]	74	98	▼ 25%
Operational
Net internal consumption	[TWh]	43.0	43.0	▼ 0%
Net internal production	[TWh]	42.2	45.5	▼ 7%
Export	[TWh]	3.0	4.2	▼ 27%

The reprot about the activity of CNTEE Transelectrica SA in January-September 2019 and the Stand-alone Interim Simplified Statements as of 30 Septembrie 2019 are available beginning with November 15, 2019.

Online, on website www.transelectrica.ro, section Investor Relations Periodical Reporting / Reports, namely https://www.transelectrica.ro/rapoarte-2019;

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

Claudia-Gina ANASTASE Executive Director General Directorate Chairman

Adrian SAVU Directorate Member