Societatea Energetica Electrica S A : Financial results – Q1 2021

PRESS RELEASE

Financial results - Q1 2021

• On a consolidated level, the net profit of Electrica Group in Q1 2021 is RON 58 million

The Electrica Group obtained, in Q1 2021, a consolidated net profit of RON 58 million, recording a decrease of RON 22 million, respectively 27.7%, compared to the same period of the previous year.

Consolidated EBITDA reached RON 199 million, decreasing by RON 25 million compared to the value recorded in Q1 2020. The fall in EBITDA is mainly determined by the evolution of the supply segment, amid the rise in electricity purchase prices, as well as the non-recurring positive elements from the first quarter of 2020, as presented below.

In Q1 2021, the total revenues of Electrica Group reached the value of RON 1,729 million, representing an increase of 2% compared to the same quarter of the previous year.

On the supply segment, the revenues were higher by 4.5%, while in the distribution segment, the revenues recorded a slight decrease of 0.4%.

The consolidated electricity and natural gas purchase costs increased by 9.9% to RON 1,140 million in Q1 2021. This evolution was mainly generated by the supply segment, where costs increased by approximately RON 120 million, or 15%, especially from the rise in the electricity purchase prices on the electricity supply segment, following the complete liberalization of the electricity market, correlated with the non-recurring effect from 2020 consisting in the recovery of the differences of electricity purchase costs on the regulated supply segment from the periods prior to 2020.

Regarding the distribution segment, the evolution of cost of the electricity purchased to cover network losses had a favorable effect on consolidated costs, of RON 18 million or 7.4%.

9, Grigore Alexandrescu street, District 1, Bucharest, 010621

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	Financial			Q1 2021			Q1 2020			%
	results			(RON mn.)			(RON mn.)
Operating revenues	1,729		1,695		2.0%
Operating expenses	1,652		1,595		3.6%
Operating profit	78		100		-22.3%
EBITDA	199		224		-11.0%
Net profit	58		80		-27.7%

OTHER IMPORTANT HIGHLIGHTS

• In Q1 2021, Electrica Group distributed approximately 4.74 TWh (rising by 5.4% compared to Q1 2020) to a number of approximately 3.8 million users.
• In Q1 2021, the Electrica Group supplied on the retail market approximately 2.4 TWh (2% fall compared to Q1 2020) to a number of approximately 3.6 million consumption places.
• At the end of 2020, EFSA had a market share of 19.25%; was the market leader on the regulated market, with a market share of 54.56% (according to the last available ANRE report, at December 2020).

More information about the financial results of Electrica Group in Q1 2021 can be found at this link: https://www.electrica.ro/en/investors/results-and-reports/interim-results/financial-statements-for-q1-2021/

Statement of Corina Popescu, CEO Electrica: "In an atypical economic and social context, Electrica Group's results for the first quarter of this year are in line with the budget.

For the electricity supply area, the results of the first three months of 2021 should be read in the context of complete energy market liberalization, leading to a significant increase in energy purchase prices, correlated with the fact that the 2020 performance on this segment was an exceptional one, also due to the favorable effect of the recoveries related to the previous years. The intense period of changes related to the functionality of the electricity market led us to implement a series of measures primarily aiming to obtaining cost optimization for the end customer, while facilitating the customers' transition in the competitive market by simplifying contracting flows.

On the supply segment, we will continue to focus on diversifying the business through offers and services tailored to customer needs, on operational efficiency through sale and purchase of electricity optimized processes and, undeniably, on orientation towards customers and maximizing their satisfaction.

9, Grigore Alexandrescu street, District 1, Bucharest, 010621

Email: [e-mail] / Tel: [phone] / Fax: [phone]

In the distribution area, we will keep our focus on investments, on operational efficiency, on improving network access, as well as service quality, and on development of smart grid technologies.

We are pleased that investors continue to trust Electrica, confirming that our development strategy is in line with the expectations of our stakeholders".

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Electrica Group is a key player in the electricity distribution and supply market in Romania, as well as one of the most important players in the energy services sector.

Electrica Group provides services to about 3.8 million users and has national coverage - with a coverage of 18 counties from three geographical areas for the distribution of electricity: Transilvania Nord, Transilvania Sud, Muntenia Nord, and across the country for the supply of electricity and for maintenance and energy services.

As of July 2014, Electrica has become a company with private majority capital, listed on the Bucharest and London stock exchanges. Electrica is the only listed Romanian company in the field of electricity distribution and supply in Romania.

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More information about Electrica Group can be found on the company's website www.electrica.ro.

9, Grigore Alexandrescu street, District 1, Bucharest, 010621

Email: [e-mail] / Tel: [phone] / Fax: [phone]