CNTEE Transelectrica : Prezentarea rezultatelor financiare aferente semestrului I 2022

Transelectrica SA

Transmission and System Operator

of the Romanian Electrical Power System

We lead the power

Financial results

1H 2022

(01.01.2022 - 30.06.2022)

unconsolidated accounts

Results 1H2022

Purpose, disclaimer and other cautionary statements

DOCUMENT PURPOSE:

This presentation has been prepared with the sole intention to facilitate the understanding of Transelectrica's operational and financial results by the general investing public (shareholders. creditors. analysts. financial media). Therefore it is of a purely informative nature. This presentation is not an offer. invitation or a recommendation to trade in securities issued by the Company. The detailed financial statements and the full reports prepared in accordance with capital market regulations are available online at www.transelectrica.ro.

FINANCIAL NUMBERS:

reporting period:	1st January 2022 - 30th June 2022
reporting standard:	International Financial Reporting Standards (IFRS)
basis/scope:	standalone (unconsolidated)
external audit:	unaudited
rounded numbers:	for ease of reading, certain figures used in this presentation (tables and charts) are displayed in millions and rounded to such
	unit or to one or two decimals. In some cases this leads to minor differences between totals and the sum of the individual elements
	(rounding errors)

LANGUAGE DISCLAIMER:

This document represents the English-language version of the original Romanian-language document. 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. 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.

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Results 1H2022

Agenda

Agenda:

1H2022 results

• Key numbers
• Operational results
• Financial results
• Investment

Q&A

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Results 1H2022

Highlights

	Financials	1H y/y	2Q y/y	1Q y/y
•	Revenues [mil lei]	2,604	▲ 83%	1,374 ▲ 98%	1,231	▲ 69%
• EBITDA [mil lei]	164	▼ 35%	89	▼ 5%	75	▼ 53%
•	Net income [mil lei]	28	▼ 73%	20	▼ 11%	8	▼ 90%

• Revenues boosted by market balancing services (pass- through segment) due to surging electricity prices
• EBITDA and Net Income under massive pressure by surging electricity prices (grid losses costs) combined with lagging tariff cost recovery (full cost recovery postponed)

	Operational	1H y/y	2Q y/y	1Q y/y
•	Consumption* [TWh]	27.73	▼5.2%	12.95	▼6.2%	14.78 ▼4.4%
• Production* [TWh]	27.01 ▼8.2%	12.88 ▼9.5%	14.13 ▼6.9%
•	Imp(+)/Exp(-) net [TWh]	+0.72	n/m	+0.07	n/m	+0.65 ▲140%

• National electricity demand shrinking due to surging prices and mild winter (1Q)
• Higher import volumes

*consumption/generation numbers do not include power plants' own electricity consumption. Consumption includes (i) consumption for hydro pumped storage. and (ii) energy losses in transmission and distribution networks. Cross-border net flow is calculated based on physical flows (export-import) aggregated across borders

Regulatory framework

• Profit-allowedsegment:

Starting 1-Jan-2021 the two regulated tariffs i.e. transmission tariff and dispatching tariff merged into a single tariff i.e. transmission tariff

• Pass-throughsegment - balancing process with two sub-processes i.e. capacity (stand-by reserve) and energy:

Stand-by balancing back-up capacity services (balancing capacity services): lower y/y gain in 1H2022 driven by the tariff cuts as of 1-March-2021 and 1-Jan- 2022

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Results 1H2022

Highlights | operational trends

Domestic demand -5.2% y.o.y.

Domestic production -8.2% y.o.y.

CONSUMPTION

2021

2022

1H -5.2%

1Q -4.4% 2Q -6.2%

TWh	6,0

5,5

5,0

4,5

4,0

0,0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2022/2021 -1.4%-6.3%-5.6%-9.1%-3.6%-5.6%

PRODUCTION	2021
	2022
1H	-8.2%
1Q -6.9%	2Q -9.5%

TWh	6,0
	5,0

0,0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2022/2021 -0.2%-9.0%-11.9%-5.3%-7.6%-15.6%

		NET IMPORT	2021
		2022
						IMPORT
TWh	1,0	1Q +140% 2Q n/a
	0,5						(+)
						(−) |
	0,0
2022/2021						EXPORT
	-0,5	Jan	Feb Mar	Apr	May	Jun Jul Aug Sep Oct Nov Dec
		-80%	+166% +276%	n/a	-79%	n/a

Consumption and generation numbers do not include power plants' own electricity consumption. Consumption includes (i) energy losses in transmission and distribution networks. and (ii) consumption for hydro pumped storage. Cross-border net flow is calculated based on physical flows (import-export).

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