Electrica Regs Regulatory News (ELSA)

Executive summary - H1 2022

Evolution of the main indicators in the first semester of 2022:

§ EBITDA - positive in the amount of RON 101 mn., a decrease of RON 256 mn. compared to H1 2021

§ Net result - loss of RON 176 mn., down with RON 252 mn. versus H1 2021

§ The volume of distributed electricity decreased by 2.3%

§ The volume of electricity supplied on the retail market decreased by 10%

§ The values are not influenced by the revenues subsequently recognized in future tariffs in a period of up to 5 years after March 31, 2023 under GEO 27/2022

The main results are presented below and are extracted from the consolidated condensed interim financial statements not reviewed nor audited as of and for the period ended 30 June 2022:

Statement of Alexandru-Aurelian Chirita, CEO of Electrica S.A.:

"The year 2022 continues to be marked by the series of transformations on the external and internal energy market that started in 2021 and had a significant impact on the operations of all energy players

The financial results of the Electrica Group in H1 2022 show that maintaining the efforts of the companies in the group to implement effective measures specific to each area of activity has led to a financial recovery/a reduction of the previous loss, thus demonstrating that despite the unfavorable market context, it remains a stable player, oriented toward continuous adaptation to the conditions of a market exposed to multiple challenges.

In the supply area, the company has identified the best ways to mitigate the negative effects generated by the market instability, managing, in parallel, the impact of the measures provided by GEO 27/2022 on the capping of electricity and natural gas prices. At the same time, Electrica supply continued the process of accelerating the digitalization process, investing in solutions to increase customer satisfaction, meant to optimize, at the same time, the activity at the company level.

The supply company within the Electrica Group has also acted in the direction of developing the B2B customer portfolio, especially in the photovoltaic projects area, registering a significant growth in this segment. In S1 2022, the company offered consultancy and customized solutions to strategic clients at national level, belonging to several types of industries.

In the distribution area, DEER continues the ambitious investment program carried out since the beginning of the previous regulatory period, aiming to modernize the network infrastructure and accelerate the expansion of smart metering on a large scale, despite the economic and geopolitical challenges that influence the capacity of equipment needed for investment. The investment program also includes five projects totaling approximately 60 million euro, financed from European funds from the large infrastructure Operational Program, with an eligible value of approximately 49 million euro, oriented toward the modernization of transformation stations, digitalization, implementation of smart meters and specialized hungry systems, intended for the management of network assets as well as measurement groups. The projects are carried out as multi-annual investments, their completion being planned for the end of 2023.

In the area of services, Electrica Serv In the service area, Electrica Serv continued the approach to reach the Group's objective of contributing to sustainable development, in the context of the European Green Deal, and implemented a series of projects representing the installation of photovoltaic plants. In H1, 11 photovoltaic power plants with an installed power of almost 3,418 MWp were completed and put into operation, and for the next period we will continue the development of this new business line.

The financial results in H1 2022 demonstrate the Group's above-average performance in difficult market conditions and encourage us to continue our strategic efforts to maintain a top position in the field in which we operate."

The support documents for H1 2022 results are available on the Electrica's website at the following link.

Contact details:

Electrica Investor Relations

E-mail: ir@electrica.ro 

CEO

Chirita Alexandru-Aurelian

Disclaimer

This report does not represent a recommendation/ offer/ invitation to contract or buy shares. This report contains information regarding preliminary key-operational indicators of Electrica Group's companies, so this forward-looking information is neither guarantees for future performance nor a forecast for the real data or otherwise, being risky or uncertain. The real results could differ significantly from the data in this report.

Therefore, Electrica undertakes no responsibility/liability for any damages that may occur from using this forward-looking information. The data in this report are selective and may requires updates, revisions and changes in the certain circumstances. Electrica assumes no obligation or commitment to publish any update, revision or modification of any information contained in this report, unless required by the applicable law.

Starting with 17 August 2022, 18:30 (Romanian time), the condensed consolidated interim financial statements as at and for the six-month period ended 30 June 2022 prepared in accordance with the International Accounting Standard 34 - "Interim Financial Reporting", as adopted by the European Union, and the Board of Directors' consolidated report for Q1 2022 will be available, in Romanian and English, in electronic format, on Electrica's website, at www.electrica.ro, in the "Investors > Results and Reports > Financial Results" section, at https://www.electrica.ro/en/investors/results-and-reports/financial-results/. The above-mentioned documents could be also available, in hardcopy, at the Company's headquarters in Bucharest, 9 Grigore Alexandrescu Street, District 1, which is open from Monday to Thursday between 08:00- 17:00 (Romanian time), and on Fridays between 08:00-14:30 (Romanian time), excepting the legal holidays.

\* The amounts are rounded to the nearest million