Q2 2026 Societatea Energetica Electrica SA Earnings Call

September 1, 2026

Speaker #1: Ladies and gentlemen, thank you for standing by. The Electrica teleconference is starting now. Thank you.

Speaker #2: Hi, everyone. This is Raluca Kasap, Head of Investor Relations. Electrica's management team would like to thank you for joining us for the conference call and live webcast to present and discuss the first semester 2026 financial results.

Raluca Casap: Hi, everyone. This is Raluca Casap, Head of Investor Relations. Electrica's Management Team would like to thank you for joining us for the conference call and live webcast to present and discuss the H1 2026 financial results. Those of you who are connected only by phone, we kindly ask you to download the presentation in PDF format, from our website under the investor section results and presentations. Besides the H1 results, in the presentation you will find about the latest events, strategy, sustainability aspects, share evolution, as well as a brief summary of the regulatory framework governing our business line. The participants connected online can address written questions on the live webcast or can intervene live on the Q&A session, audio at the end. You can, of course, ask questions as well through our regular IR email.

Raluca Kasap: Hi, everyone. This is Raluca Casap, Head of Investor Relations. Electrica's Management Team would like to thank you for joining us for the conference call and live webcast to present and discuss the H1 2026 financial results. Those of you who are connected only by phone, we kindly ask you to download the presentation in PDF format, from our website under the investor section results and presentations. Besides the H1 results, in the presentation you will find about the latest events, strategy, sustainability aspects, share evolution, as well as a brief summary of the regulatory framework governing our business line. The participants connected online can address written questions on the live webcast or can intervene live on the Q&A session, audio at the end. You can, of course, ask questions as well through our regular IR email.

Speaker #2: Those of you who are connected only by phone, we kindly ask you to download the presentation in PDF format from our website, under the Investor section, Results and Presentations. Besides the H1 results, in the presentation you'll find information about the latest events, strategies, sustainability aspects, share evolution, as well as a brief summary of the regulatory framework governing our business line.

Speaker #2: Participants connected online can address written questions on the live webcast or can intervene live during the Q&A session—audio at the end. You can, of course, also ask questions through our regular IR email.

Speaker #2: Please kindly note that, since the entire conference is being recorded, all participants will be in listen-only mode. Therefore, attendees' microphones will be disabled.

Raluca Casap: Please kindly note that since the entire conference is being recorded, all participants will be in a listen-only mode, so the attendees' voices will be disabled. Should anyone need assistance, you may signal an operator by pressing star and zero on your telephone. The recorded presentation will be available later tonight, latest tomorrow, and the transcript as well as soon as possible. Also, we kindly ask you to see the disclaimer on slide 3 of the presentation. We will begin the presentation, which will be followed by a questions and answer session at the end. I will invite now our CEO, Mr. Alexandru Chiriță to begin.

Raluca Kasap: Please kindly note that since the entire conference is being recorded, all participants will be in a listen-only mode, so the attendees' voices will be disabled. Should anyone need assistance, you may signal an operator by pressing star and zero on your telephone. The recorded presentation will be available later tonight, latest tomorrow, and the transcript as well as soon as possible. Also, we kindly ask you to see the disclaimer on slide 3 of the presentation. We will begin the presentation, which will be followed by a questions and answer session at the end. I will invite now our CEO, Mr. Alexandru Chiriță to begin.

Speaker #2: Should anyone need assistance, you may signal an operator by pressing star and zero on your telephone. The recorded presentation will be available later tonight, at the latest tomorrow, and the transcript as well as soon as possible.

Speaker #2: Also, we kindly ask you to see the disclaimer on slide 3 of the presentation. We'll begin the presentation, which will be followed by a question and answer session at the end.

Speaker #2: I'll invite now our CEO, Mr. Alexandru Chirita, to begin.

Speaker #3: Thank you, Raluca. Dear ladies and gentlemen, thank you for being with us today. As always, we value the opportunity to share our journey with you and gain your insights and perspectives.

Alexandru Chiriță: Thank you, Raluca. Dear ladies and gentlemen, thank you for being with us today. As always, we value the opportunity to share our journey with you and gain your insights and perspectives. We are available at the end of the presentation to answer any questions that might arise, so please stay tuned until we finish. When we spoke three months ago about the first quarter, I shared with you our view on the structural transformation taking place in the Romanian energy market, a shift marked by the return to a stable market competition after a prolonged period of volatility and regulatory interventions. Today, looking at our full results for the first six months, I am happy to report that our performance fully validates our strategic choices. In a market where environment dynamics have changed fundamentally, competitive advantage is built on operational discipline, continuous efficiency, and of course, proper capital allocation.

Speaker #3: We are available at the end of the presentation to answer any questions that might arise, so please stay tuned until we finish. When we spoke three months ago about the first quarter, I shared with you our view on the structural transformation taking place in the Romanian energy market.

Speaker #3: A shift marked by the return to a stable market competition after a prolonged period of volatility and regulatory interventions. Today, looking at our full results for the first six months, I am happy to report that our performance fully validates our strategic choices.

Speaker #3: In a market where environmental dynamics have changed fundamentally, competitive advantage is built on operational discipline, continuous efficiency, and, of course, proper capital allocation. The figures of this first half demonstrate that the direction we set for Electrica is solid, financially resilient, and fully aligned with our integrated business model.

Alexandru Chiriță: The figures of this H1 demonstrate that the direction we set for Electrica is solid, financially resilient, and fully aligned with our integrated business model. For H1 2026, we generated an EBITDA of nearly RON 1.1 billion, with a growth of roughly 7.7%. Our net profit reached at this point RON 457 million, up by 8.6%, and the consolidated revenues over RON 6 billion, a 24% increase compared to the H1 of last year. Let's go through the core business lines. In short, the distribution segment, as always, represents the steady anchor of value for the group, and it is contributing over 85% of our consolidated EBITDA. Over these six months, they have distributed almost 9 terawatt hours of electricity to over 4 million grid users across our 18 counties.

Speaker #3: For H1 2026, we generated an EBITDA of nearly RON 1.1 billion, with a growth of roughly 7.7%. Our net profit reached at this point RON 457 million, up by 8.6%, and the consolidated revenues were over RON 6 billion, a 24% increase compared to the first half of last year.

Speaker #3: Now, let's go through the core business lines. In short, the distribution segment, as always, represents the steady anchor of value for the group, and it's contributing over 80.5% of our consolidated EBITDA.

Speaker #3: Over these six months, they've distributed almost 9 terawatt-hours of electricity to over 4 million grid users across our 18 counties. Revenues rose nearly 5% to 2.84 billion RON, and we focused on infrastructure resilience. Our network investment program remains unwavering.

Alexandru Chiriță: Revenues rose nearly 5% to RON 2.84 billion, and we focused on infrastructure resilience, and our network investment program remains unwavering. In the H1 of the year, we put in operation investments worth RON 233 million. We are fully in line with our operational targets, and commissioning is carrying out continuously across the entire year to ensure and enhance the quality, safety, and reliability of the grid we operate. By end of June, our regulated asset base reached an approximate RON 8.71 billion in nominal terms. Now, we are going to, I hope, a full year of normalization after all these periods, and I think we will be in line with our CapEx program by the end of the year. The supply segment, we navigated differently. It is one of the most demanding and transformative periods in recent years.

Speaker #3: In the first half of the year, we put into operation investments worth 233 million RON. We are fully in line with our operational targets, and commissioning is carried out continuously across the entire year to ensure and enhance the quality, safety, and reliability of the grid we operate.

Speaker #3: By the end of June, our regulated asset base reached approximately 8.7 billion RON in nominal terms. Now, we are going into, I hope, a full year of normalization after this period, and I think we will be in line with our capex program by the end of the year.

Speaker #3: The supply segment, we navigated differently. It’s one of the most demanding and transformative periods in recent years. The end of the price-capping mechanism last year allowed us to rebuild our pricing strategy around true market fundamentals, risk management, and profitability.

Alexandru Chiriță: The end of the price capping mechanism last year allowed us to rebuild our pricing strategy around through market fundamentals, risk management, and profitability. Managing this transition in a controlled and balanced way enabled our supply to generate an EBITDA of RON 181 million. A good recovery, I would say, from the RON 58.5 million recorded in the same period of last year. Even though retail volumes dropped by 9% as the market calibrated, and of course, with the actual problems on the market, the lack of energy, and the overall reduce of consumption in report to the economic, let's say, stagnation, our revenues decreased year-on-year only by 2%, and it reached RON 4.3 billion.

Speaker #3: Managing this transition in a controlled and balanced way enabled our supply to generate an EBITDA of 181 million RON—a good recovery, I would say, from the 58.5 million RON recorded in the same period last year.

Speaker #3: Even though retail volumes dropped by 9% as the market calibrated, and, of course, with the actual problems in the market—the lack of energy and the overall reduced consumption in relation to the economic, let's say, stagnation—our revenues decreased year on year only by 2%, and reached 4.3 billion RON.

Speaker #3: We maintained our position in the supply market, ranking third in terms of overall supplied volumes in the first five months, and being a leader in the total customer base, with over 3.2 million consumption points.

Alexandru Chiriță: We maintain our position in the supply market, ranking third in terms of overall supplied volumes in the first five months, and being a leader in the total customer base over 3.2 million consumption points. However, I must emphasize that our commitment to open, fair, and truly competitive market remains firm. We are still working continuously with the authorities to recover the outstanding subsidies owed to the group, which stood at 2.54 billion RON at the end of June. A good news is that the law has made some changes on Friday, and we are looking forward in recovering some of the amounts in the immediate future, for roughly 500 million RON. On the strategy of production and renewables, where our vision for the future is becoming a daily reality. In the H1, we produced almost 21 gigawatt hour of green electricity.

Speaker #3: However, I must emphasize that our commitment to an open, fair, and truly competitive market remains firm. We are still working continuously with the authorities to recover the outstanding subsidies owed to the group, which totaled 2.54 billion RON at the end of June.

Speaker #3: A good piece of news is that the law has made some changes. On Friday, we are looking forward to recovering some of the amounts in the immediate future.

Speaker #3: For roughly 500 million RON. On the strategy of production and renewables, where our vision for the future is becoming a daily reality, in the first half we produced almost 21 gigawatt-hours of green electricity.

Speaker #3: It tripled the volume produced in the first half of 2025, and this milestone is the direct outcome of bringing into commercial operation our Vulture and Satu Mare 2 photovoltaic parks.

Alexandru Chiriță: It tripled the volume produced in H1 of 2025. This milestone is the direct outcome of bringing into commercial operation of our Vulturu and Satu Mare two photovoltaic parks. Now we are roughly at 50 megawatts operational. Our long-term target remains the same regarding the renewable production capacity, and we have currently 300 megawatts of solar and wind in various stages. We started the Bihor park in Satu Mare 3. We are beginning constructions. I think we will be going to be in line. Also, we are currently closing in on the start of the constructions for the wind projects. On the battery side, we still have a lot of pipeline, and we have the target there. I think we will overpass at the, in the near future, more than 1.2 gigawatt hour of battery storage. You have on the screen the exact time frames for that.

Speaker #3: Now, we are roughly at 50 megawatts operational. Our long-term target remains the same regarding the renewable production capacity, and we currently have 300 megawatts of solar and wind in various stages. We started the Bihor Park and Satu Mare 3; we're beginning constructions. I think we will be in line.

Speaker #3: Also, we are currently closing in on the start of the constructions for the wind projects. On the battery side, we still have a lot of pipeline, and we have the target there.

Speaker #3: I think we will surpass, in the near future, more than 1.2 gigawatt-hours of battery storage. You have on the screen the exact timeframes for that.

Speaker #3: We are doing our absolute best to reduce the time that is spent building these capacities, as they are crucial in the environment we are set to work in now.

Alexandru Chiriță: We are doing our absolute best to reduce the time that it spent building these capacities as they are crucial in the environment we are set to work now. Ten days ago, of course, our shareholders approved our ambitious projects in Craiova, and last week we signed the contract to build a high efficiency cogeneration plant based on natural gas internal combustion engines, which will supply thermal energy to the city's centralized district heating system and electricity to the national grid. It is a very important investment for us. It makes perfect sense in the synergy of the group. We, of course, identified this high opportunity for the group in order to make this investment, and we are very pleased that our shareholders supported the decision and our request to fund it. At the same time, we are not lagging behind with our commitments.

Speaker #3: Ten days ago, of course, our shareholders approved our ambitious projects in Craiova, and last week we signed the contract to build a high-efficiency cogeneration plant based on natural gas, with internal combustion engines, which will supply thermal energy to the city's centralized district heating system.

Speaker #3: And electricity to the national grid. It's a very important investment for us. It makes perfect sense in the synergy of the group. We, of course, identified this as a high opportunity for the group in order to make this investment, and we are very pleased that our shareholders supported the decision and our request to fund it.

Speaker #3: At the same time, we're not lagging behind with our commitments. We are going forward with the memo with Romgas. We are going forward with the memo with Liberty.

Alexandru Chiriță: We are going forward with the MoU with Romgaz. We are going forward with the MoU with Liberty Galati. It takes a bit of time to start to finish up the paperwork and to have some clear projects on the actual pipeline, but we will keep the market updated on developments regarding any of them as usual. At the same time, we continue to evaluate regional growth opportunities. We are happy to announce that the actual opening of the Actually, it is the takeover, and now it is going to be the name change for Electrica Moldova. We are looking there on opportunities. We should add Moldova to the map in the future.

Speaker #3: It takes a bit of time to start and finish up the paperwork, and to have some clear projects in the actual pipeline, but we'll keep the market updated on developments regarding any of them, as usual.

Speaker #3: At the same time, we continue to evaluate regional growth opportunities. We are happy to announce that the opening the actual opening of the actually it's the takeover and now it's going to be the name change for electric Moldova.

Speaker #3: We are looking there for opportunities. We should add Moldova to the map in the future.

Speaker #2: There's a very small note below.

Raluca Casap: There's a very small note below.

Raluca Kasap: There's a very small note below.

Alexandru Chiriță: Yeah. We should add it to the map there.

Speaker #3: Yeah, we should add it to the map there. And let's see what the future holds, because we're looking forward to more than that.

Raluca Casap: We will.

Raluca Kasap: We will.

Alexandru Chiriță: Let's see what the future holds because we're looking forward to more than that. On strategy and finance outlook, looking ahead at the reminder of 2026, we hold a very confident and positive outlook. Electrica is transforming, and I think it's visible for everybody that things are changing at a much rapid pace. It's becoming a platform. It becomes something else. It's more than a utility. It will be an integrated platform for energy distribution, supply, generation, storage, services, and advanced digital processes. It sounds long, but I think the actual transformation is happening. For this, we are putting in place a strong financial structure. We already have the approval from our shareholders, who I thank for the bond program up to EUR 1 billion. It will be complemented with a dedicated bridge to bond credit facility.

Speaker #3: On strategy and finance outlook, looking ahead at the remainder of 2026, we hold a very confident and positive outlook. Electrica is transforming, and I think it's visible for everybody that things are changing at a much more rapid pace.

Speaker #3: It's becoming a platform. It becomes something else. It's more than a utility. It will be an integrated platform for energy distribution, supply, generation, storage, services, and advanced digital processes.

Speaker #3: It sounds long, but I think the actual transformation is happening. And for this, we are putting in place a strong financial structure.

Speaker #3: We already have the approvals from our shareholders, whom I thank, for the bond program of up to €1 billion. It will be complemented with a dedicated bridge-to-bond credit facility.

Speaker #3: And two weeks ago, we also obtained the approval from our shareholders to centralize the existing credit facilities at the level of the mother company, in the amount of 8.7 billion RON.

Alexandru Chiriță: Two weeks ago, we also obtained the approval from our shareholders to centralize the existing credit facilities at the level of the mother company on an amount of 8.7 billion RON. This is a very good step forward in having a more strong financial structure. It will be at group level. Hopefully, it will decrease the overall cost and the financial pressure. We are on a stable liquidity position. I think in the end, we are working on securing the best possible terms for the group. Financial flexibility will allow us to act much faster, we will capture market opportunities, and we can back all the projects in the pipeline with requested today. So the CapEx is real, it is there. We are pushing to build faster, and we will keep the market transparently up to date as all this endeavor is mature.

Speaker #3: This is a very good step forward in having a stronger financial structure. It will be at group level. Hopefully, it will decrease the overall cost and the financial pressure.

Speaker #3: We are in a stable liquidity position, and I think, in the end, we are working on securing the best possible terms for the group.

Speaker #3: Financial flexibility will allow us to act much faster, will capture market opportunities, and we can back all the projects in the pipeline requested today.

Speaker #3: So the CAPEX is real, it's there. We're pushing to build faster, and we'll keep the market transparently up to date as this endeavor matures.

Speaker #3: In closing, not to prolong it, I want to emphasize that our operational discipline, our financial flexibility, and most importantly, the dedication and professionalism of our colleagues across the entire Electrica Group are what enable us to deliver sustainable value to our stakeholders and build a secure, modern energy future for Romania.

Alexandru Chiriță: In closing, not to prolong it, I want to emphasize that our operational discipline, our financial flexibility, and the most important, the dedication and professionalism of our colleagues across the entire Electrica Group, is what enable us to deliver sustainable value to our stakeholders and build a secure, modern energy future for Romania. I thank you for your attention and continued support. I will be here to answer any of your questions. I will now pass the floor to our Chief Financial Officer, Mr. Costin Iordache, who will detail the financial results of H1 2026. Then I will be delighted to take your question. Costin, please.

Speaker #3: I thank you for your attention and continued support. I will be here to answer any of your questions. I will now pass the floor to our Chief Financial Officer, Mr. Costin Iordache, who will detail the financial results of H1 2026.

Speaker #3: And then I'll be delighted to take your question. Costin, please.

Speaker #1: Thank you very much. Good evening. My name is Costin Iordache and I'll pass you through our financials. The group’s results in H1 2026 delivered increases on the lines of revenues, 23%.

Costin Iordache: Thank you very much. Good evening. My name is Costin Iordache, and I will pass you through our financials. The group results in H1 2026 delivered increase in the lines of revenues 23%. We have an increase in EBITDA that support our cash development, supported also in the net results margin, where we go to 458 million RON in the results. The consolidated EBITDA net results evolution, the positive variation is what is driven by the energy margin, mainly affected by a negative influence from the OpEx, 74 million RON.

Speaker #1: We have an increase in EBITDA that supports our cash development, also supported in the net results margin, where we go to 458 million RON in the results.

Speaker #1: The consolidated EBITDA net results evolution, the positive variation, it was driven by the energy margin, mainly affected by a negative influence from the OPEX—74 million RON.

Speaker #1: The negative variation of the OPEX was mainly in the cost at the group level, driven by the increase of the cost in the distribution segment, where we have impact related to the evolution of the prices.

Costin Iordache: The negative variation of the OpEx was mainly inherent in the cost at the group level, driven by the increase of the cost in the distribution segment, where we have impact related to the evolution of the prices in the repairs and maintenance. We have, in the same time, expenses increase in the third party expenses driven by the market price evolution. Distribution segment is the financial results. EBITDA decreases 42 million RON, mainly, like I said, due to the unfavorable OpEx, offset by some positive evolution in the energy electricity revenues generated by the reactive energy or by the other segments where we are producing margins. Overall, there remains the largest distributor operator in Romania with 4.1 million users. We have a positive evolution, in terms of the distributed volumes, but remain stable compared with last year. In the same time, we optimized our network losses.

Speaker #1: In the repairs and maintenance, we have at the same time an increase in expenses for third-party services, driven by the market price evolution.

Speaker #1: The Distribution segment is the financial results. EBITDA decreased by 42 million RON, mainly, like I said, due to the unfavorable OPEX, offset by some positive evolution in the energy electricity revenues generated by the reactive energy, or by the other segments where we are producing margins.

Speaker #1: Overall, we remain the largest distributor-operator in Romania, with 4.1 million users. We have a positive evolution in terms of distributed volumes that remain stable compared with last year, and at the same time, we optimized our network losses.

Speaker #1: The supply segment Electrica Furnizare EBITDA improved by 22 million RON compared with H1 2025, mainly following the evolution of the factors below. The increase in the energy margin was 76 million RON from the supply segment, increased mostly by the variation of the revenues related to the supply segment, which is determined by the establishment of the selling prices in the electricity competitive mechanism adapted to the company strategy.

Costin Iordache: The supply segment, Electrica Furnizare, EBITDA improved by RON 22 million compared with H1 2025, mainly following the evolution of the factors below. The increase in the energy margin was RON 76 million from the supply segment, increased mostly by the variation of the revenues related to the supply segment, is determined by the establishment of the selling prices in the electricity competitive mechanism adapted to the company strategy. This positive effect was partially diminished by the 9% decrease of the energy supplied in the retail market. Electrica Furnizare, as we mentioned, ranked as the third among suppliers in January to May 2026. We are struggling to try to opt to go further to the second place, what I think is belonging to us. The volume in electricity market supplied decreases -8.9%, from 3.71 terawatts to 3.38 terawatts.

Speaker #1: This positive effect was partial diminished by the 9% decrease of the energy supplied in the retail market. Electrica Furnizare as we mentioned ranked as the third among supplier in the January to May 2026 and we are struggling to try to opt to go further to the second place that I think is belonging to us.

Speaker #1: The volume in the electricity market supplied decreased by minus 8%, or 8.9%, from 3.71 terawatt-hours to 3.38 terawatt-hours. The same is also affecting consumption numbers, which unfortunately decreased as well, from 3.42 to 3.23.

Costin Iordache: The same is also affecting the number of the consumption, but unfortunately, decreased also from 3.42 to 3.23. We have a positive evolution in the receivables. The total receivables decreased from RON 48 million, was -6% in the first six months, significant operating offering us the positive impact in our working capital evolution. This is also reflecting in our slide, and the total outstanding receivable adjusted with the exclusion turnover goes to RON 806 million in 2026. The production segment, that is our new star, and it is developing, shows that the strategy is in the right approach. We have a very positive increase. We see a double digit increase in the revenues. The EBITDA is more than double. It is going from two to seven, and the net result is confirming this result.

Speaker #1: We have a positive evolution in the receivables. The total receivables decreased from 48 million RON, down 6% in the first six months, significantly offering us a positive impact in our working capital evolution.

Speaker #1: This is also reflecting in our in the in our slide and the total outstanding receivables adjusted with the with the exclusion turnover goes to 806 million in 2026.

Speaker #1: The production segment that is our new star and its developing shows that the strategy is the right approach. We have a very positive increase—we see a double-digit increase in the revenues. The EBITDA is more than double; it's going from 2 to 7, and the net result is confirming this. This is our production segment. At this moment, it's driven by the Electrica through Saneș and Vulturu. Satu Mare is through Sunwind Energy, which is our vehicle that is also operational. At the same time, the other two are under construction or in different stages, but when they are also ready, the production segment will become a greater contributor in our results.

Costin Iordache: Production in segment, it is at this moment driven by Electrica, Susanesc and Vulturu Satu Mare through Sunwind Energy. That is our vehicle, that is also operational. At the same time, the other two are under constructive or in different stages. But when they will be also ready, the production segment will become more contributory in our results. Electrica Serv, in H1, the evolution of the net result is positive of RON 70 million, mainly from the evolution of EBITDA from RON 20 million, in which you added the decrease of the amortization depreciation. As positive things, the group having a positive evolution in the EBITDA during the entire group. The group liquidity and debt maturity profile. At the group level, liquidity available in cash and overdraft limits as of 30 June 2026 was RON 2,830 million.

Speaker #1: Electrica SERV, in H1, the evolution of the net result is positive, at 17 million, mainly from the evolution of EBITDA, up by 20 million RON, to which is added the decrease of the amortization and depreciation.

Speaker #1: As a positive thing, the group is having a positive evolution in the BDA during the entire period. The group liquidity and debt maturity profile at a group level show liquidity available in cash and overdraft limits. As of 30th June 2026, this was 2,813 million RON.

Speaker #1: This is lower, but the driver behind it is the fact that the group was able to place more money in long-term investments, meaning we placed more money after three months.

Costin Iordache: This is lower, but the driver behind this, the fact that the group was able to place more money in the long-term investments, meaning we place more money after three months. This offers us more cash disposal. As in order to sustain our investments, as you see, most of our debt is concentrating in the bank borrowings over two to five years, and we have a significant amount also more than five years. We have less than one year. It is mainly to the fact that we sustain our working capital, and the short-term facilities, with RON 2.5 billion available for the short-term improvement. These are the main numbers, and we are able here to answer to any of your questions available for the next time. Thank you.

Speaker #1: So this offer us a more more cash disposal. As in order to sustain see the debt most of the debt our debt is concentrating in the bank borrowings over two to five years and we have a significant amount also more than five years.

Speaker #1: We have less than one year, mainly due to the fact that we sustain our working capital and the short-term facilities, with 2.5 billion RON available for short-term improvement.

Speaker #1: Mainly, these are the main numbers, and we are able here to answer any of your questions available for the next time.

Speaker #1: Thank you.

Speaker #2: I think we can start with the questions, Ralco. I can take the first one.

Alexandru Chiriță: I think we can start with the questions, Roka. I can take the first one.

Raluca Casap: We have anyone online?

Raluca Kasap: We have anyone online?

Speaker #1: We have anyone online?

Speaker #2: I have one from Caius. If he's online, I can take the question. I can't see the screen very well, but I have it on my phone.

Alexandru Chiriță: I have one from Caius. If he is online, I can take the question. I cannot see the screen very well, but I have it on my phone. So timing of subsidy recovery. Now that the law is in place, I don't think it will take more than a month to see the increase from 40% to 60%, which roughly translates to RON 500 million. It will help decrease the overall cost burden on the group, especially on the supply side. We are seeing something that it is quite optimistic. We had discussions regarding the slow pace of which the subsidy problem is being currently handled. There is the openness from the state to actually increase again by the end of the year. Maybe we can get to a different percentage, maybe 70%, which will again lower the pressure on the company. It is not that we are not stable.

Speaker #2: So timing of subsidy recovery. Now the that the law is in place it will take I don't think it will take more than than a month to see the increase from 40% to 60% which roughly translates to 500 million.

Speaker #2: It will help decrease the overall cost burden on the group, especially on the supply side. So, we're seeing something that's quite optimistic.

Speaker #2: We had discussions regarding the slow pace at which this subsidy problem is currently being handled, and there is openness from the state to actually increase again by the end of the year. Maybe we can get to a different percentage, maybe 70%, which will again lower the pressure on the company.

Speaker #2: It's not that we're not stable. We're stable, but there is a financial cost that will be settled in the future, and neither of the parties would like it to exist.

Alexandru Chiriță: We are very stable, but there is a financial cost that will be settled in the future, that neither of the parties would like it to exist. Now, on declining volumes in supply, you can see it differently. We can see it more, let us say, more emphasized on the supply business. Not so keen on the distribution, but it is there. It is not that we do not do something in practicality. It is that the economy is actually slowing down. We can see it overall. We do not have the same level of consumption at the national level as it is. I am sure that by the year pass, we will get back to what will be a new normal. I do not know if we can call normal something at this point. Our target is still there. We are still doing our best to manage everything.

Speaker #2: Now, on declining volumes in supply, you can see it differently. We can see it, let's say, more emphasized on the supply business—not so keen on the distribution—but it is there.

Speaker #2: It's not that we don't do something in practicality, it's that the economy is actually slowing down. We can see it overall. We don't have the same level of consumption at the national level as it is, but I'm sure that by the year, as the year passes, we will get back to what will be a new normal.

Speaker #2: I don't know if we can call anything normal at this point. But our target is still there. We're still doing our best to manage everything.

Speaker #2: So, for today, the declining volumes in supply, even though they have an effect on the overall results of the group, keep in mind it's one of the scenarios that we had in the beginning when we made the budget.

Alexandru Chiriță: So for today, the declining volumes of supply, even though they have an effect on the overall results of the group. Keep in mind, it is one of the scenarios that we had in the beginning when we made the budget. I think we are still 70% to 80% over the budget. So we are still delivering over our expectation of, let us say, bad events. In CapEx completion till year-end, I think it is on the network, I guess. So on the production, there is no problem, maybe slight delays. But on the distribution, again, you can see that it is still where it was last year. We are going to a phase of, let us say, normal course of business where we do not recover in the next year. At least this is our intent. The actual CapEx intended. We have more than EUR 150 million per year. We have the European funding on various matters.

Speaker #2: We're still, I think, we're still 70-80% over the budget, so we're still delivering over our expectation of, let's say, bad events.

Speaker #2: Incompex completion in till year end I think it is on the network I guess. So on the on the production there there is not there is no problem maybe slight delays but on the distribution again you can see that it's still where it was last year we're going to a phase of let's let's say normal course of business where we don't recover in the next year at least this is our intent the actual capex intended.

Speaker #2: We have more than €150 million per year. We have the European funding on various matters. We should be without deviation. If there is something that we don't reach by the end of the year, which I don't think should be the case, we can still recover the next year.

Alexandru Chiriță: We should be without deviation. If there is something that we do not reach by end of the year, which I do not think should be the case, we can still recover the next year. As you could see in the last four years, we actually went over the plan that we agreed with ANRE, and it is our intention to accelerate this investment, because the most important thing for this sector today is the grid. We need to understand that we need more investments in the grid. We need to put more money there, and we need to deliver faster. So we are doing our part. We are speaking with the regulator about increasing the level of investment. I am sure that at some point, we will find some solutions, and we can actually do these things.

Speaker #2: As you could see, in the last four years we actually went over the plan that we agreed with ANRE, and it is our intention to accelerate this investment because what is most important for the sector today is the grid.

Speaker #2: We need to understand that we need more investments in the grid. We need to put more money there, and we need to deliver faster.

Speaker #2: So we’re doing our part. We are speaking with the regulator about increasing the level of investment. I’m sure that, at some point, we will find some solutions.

Speaker #2: And we can actual we can actually do this thing. On the economics of Crayova businesses now everything is in line and you have access to all the data I don't know the specific of the question but I think you can contact Raluca she can give you access with more details for let's say at a high level electrica needs this kind of this kind of energy capacity anyway in the group.

Alexandru Chiriță: On the economics of Craiova businesses, everything is in line, and you have access to all the data. I do not know the specific of the question, but I think you can contact Raluca Casap. She can give you access with more details. For, let us say, at a high level, Electrica needs this kind of energy capacity anyway in the group. If you remember, there is a permanent talk about the Fântânele plant, which should balance our overall portfolio. Now that we had this opportunity where we make this investment with lower risk, we should be more than At least I am more than comfortable this is a good investment. And it will be done as fast as possible. We also made a promise to the people of Craiova that they will have the heating.

Speaker #2: If you remember there is a permanent talk about the fontanelle plant which should balance our overall portfolio now that we had this opportunity where we keep we make this investment with lower risk we should be more than I at least I am more than comfortable this is a good investment.

Speaker #2: And it will be done as fast as possible. We also made a promise to the people of Craiova that they will have heating. I think this winter will be the last one that will be without Electrica actually intervening.

Alexandru Chiriță: I think this winter will be the last one that will be without Electrica actually intervening, and after that, we will take over and secure. We go to our next question. I think this is for Costin Iordache regarding some corrections.

Speaker #2: And after that, we will take over and secure. Okay, we go to the next question. I think this is for Costin regarding some corrections.

Speaker #1: Yes. You disclosed 106 million corrections and adjustments embedded for 2026 tariffs, and this fully reflects the 2024 deviations. And yes, the affirmation is that the corrections fully reflect the 2024 deviations.

Costin Iordache: Yes. You disclose RON 106 million corrections and adjustments embedded for 2026 tariffs, and this fully reflects the 2024 deviations. Yes, for the affirmation is the corrections fully reflect the 2024 deviations. There is another question. What impact do you expect from the Cernavoda outage to have on procurement and supply margins in H2 2026, and how much the required volume are already hedged?

Speaker #1: We are going to—there is another question: What impact do you expect the Senene outage to have on procurement and supply margins in H2 2026, and how much of that requires formal, already-hedged positions?

Speaker #2: Okay, I'll just make a brief comment on this. So, the nuclear outage will have some effect on the cost and supply, but I don't think in the end it will be—things will go back to normal quite quickly.

Alexandru Chiriță: Okay. I'll just make a brief comment on this. The nuclear outage will have some effect on the cost and supply, but I don't think in the end if things will go back to normal quite quickly, so we won't stay like this more than another two should not be a material level. So it shouldn't overall impact the results of the supply. It will probably be some debate there. There are some legal discussions regarding what's happened. There are some legal discussions with the teams regarding the remedies for this. Let's wait and see exactly. We're not very concerned. We are concerned indeed if the situation prolongs, but there is enough energy on the market. It's a bit more expensive than usual, but the energy is still there, and that's what matters most today.

Speaker #2: So, we won't stay like this more than another two. It should not be a material level, so it shouldn't overall impact the results of the supply.

Speaker #2: There will probably be some debate there. There are some legal discussions regarding what's happened; there are some legal discussions with the teams regarding the remedies for this. Let's wait and see exactly.

Speaker #2: So we're not very concerned. We are concerned, indeed, if the situation prolongs, but there is enough energy on the market. It's a bit more expensive than usual.

Speaker #2: But the energy is still there, and that's what matters most today. How much of the decline in supply volumes reflects lower consumption per customer versus customer losses, and what volume do you expect for 2026?

Alexandru Chiriță: How much of the decline in supply volumes reflects lower consumption per customer versus customer losses, and what volume do you expect for 2026? I don't know if we actually disclose this kind of-

Speaker #2: I don't know if we actually disclose this kind of information.

Speaker #1: No at this moment this kind of information exactly we cannot disclose at the customer level as a general comments and you have it already from the statistical evidences of Romania as a recent decrease of the energy consumption overall Romania so obvious we are one of the players in the market.

Costin Iordache: No, at this moment, this kind of information, exactly, we cannot disclose at the customer level. As a general comment, and you have it already from the statistical evidences of Romania, there is a decrease of the energy consumption over all Romania. Obvious we are one of the players in the market-

Alexandru Chiriță: Maybe the, sorry. Maybe the question is the overall loss from decreasing the energy or the clients. No, it is from the overall decrease of energy volumes per country. I think this was actually the question. Sorry to intervene.

Speaker #2: Maybe the—sorry—maybe the question is: Is the overall loss from decreasing the energy or the clients? No, it's from the overall decrease of energy volumes per country.

Speaker #2: I think this was actually the question. Sorry to intervene.

Speaker #1: What level of capex do you now expect for the final year 2026, and how much, if any, could slip into 2027? As a general comment, without giving a specific guideline, we want to mention that Electrica—in the grid—and expect to put in capex according to our expected plan from ANRE, even to be over the capex. This is our expectation for 2026.

Costin Iordache: What level of CapEx do you now expect for this final year, 2026, and how much, if any, could slip into 2027? As a general comment, without giving a guideline, we want to mention that Electrica integrated and expect to put in CapEx the expected plan according to ANRE, even to be over the CapEx. This is our expectation for 2026. If not possible, I think we will move 2027, but our expectation that we will be over the plan at the end of 2026. On the network losses conform assumption, would you consider reasonable for fiscal final year 2026, and could you provide any guidance? It will be around 9%. I think it is already a tradition coming to the third question, following the H1 results, what level do you now expect for the final year 2026, and which segments are driving any change versus your previous expectations?

Speaker #1: We don't think it's not possible. I think we'll remove 2027, but our expectation is that you'll be over the plan at the end of 2026.

Speaker #1: On the network losses volume constant assumption, would you consider it reasonable for fiscal final year 2026, and could you provide any guidance? I cannot say it will be around 9%.

Speaker #1: I think it's already a tradition, coming to the third question. Following the H1 results, what level do you now expect for the final year 2026, and which segments are driving any change versus your previous expectations?

Speaker #1: I think, as we already mentioned, we are over the budget, so that is at this moment not a problem anymore. That will remain over the budget till the end of the year.

Costin Iordache: I think as we already mentioned, we are over the budget, so at this moment, not a problem anymore that will remain over the budget till the final of the year. We do not want to give now any guidance about the final values of 2026. These questions, how do you expect the EUR 235 million Craiova CapEx to be phased over 2026, 2028? And when do you expect the commercial operations to start? I think, Mr. Alexandru, it is already answered to these questions. So I do not think if I can add something.

Speaker #1: We don't want to give, now, any guidance about the final values of 2026. The question is: how do you expect the €230–235 million Craiova capex to be phased over 2026–2028, and when do you expect the commercial operations to start?

Speaker #1: I think Mr. Alexander Kirits already answered these questions, so I don't think I can add anything.

Speaker #2: Now, the capex for Crayova will be, I think, split in two. We will most likely place the orders by the end of the year. We will settle how much will be paid upfront or during execution, but that shouldn't be a problem.

Alexandru Chiriță: The CapEx for Craiova will be, I think, split in two. We will most likely place out the orders by end of the year. We will settle how much it will be paid up front or in execution, but shouldn't be a problem. We should be in line with the overall estimates. We already had discussions with all parties involved. We are on the way to secure everything that is needed and make the most of it and make it a very good project for Electrica. We will revert with. Again, you can contact Raluca. Some of the information regarding Craiova are under NDA clauses. You can revert to her, sign an NDA, and then we can actual disclose some of the extra information.

Speaker #2: We should be in line with the overall estimates. We have already had discussions with all parties involved. We are underway to secure everything that is needed.

Speaker #2: And make the most of it, and make it a very good project for Electrica. We will revert again; you can contact Raluca.

Speaker #2: Some of the information regarding Crayova is under NDA clauses. You can revert to her, sign an NDA, and then we can actually disclose some of the extra information.

Speaker #1: On the Q3 potential EBITDA or potential results, as we already mentioned, we see there is volatility in the market. It was this that was driving this volatility also in August, expected also to be prolonged in September.

Costin Iordache: On the Q3 potential EBITDA or potential results, as we already mentioned, we see there is a volatility in the market. This will drive this volatility also in August, expected also to be prolonged in September. It is difficult now to give a guideline what will be the expected EBITDA for Q3 2026. Sorry, on the last things you want to know, on the last question here, I would like to focus how you see the network losses and procurement costs in the supply, a little unclear.

Speaker #1: It's difficult now to give a guideline on what the expected EBITDA for Q3 2026 will be. Sorry, on the last things—you want to know how, on the last question here, I would like to focus on how you see the network losses and procurement costs in the supply. That's a little unclear.

Alexandru Chiriță: The network are on the distribution and the procurement cost, I guess it is referring to the supply. What we can answer one way or another. So network losses are in line with the targets that are set with ANRE. The procurement costs, now there is a discussion here. We are in line with what ANRE is targeted. There is a small discussion regarding what happened in the last two weeks. But it will be an analysis that we will make post-closing and see if the actual procurement cost of the energy that was due to the closing of the nuclear reactors went over the pricing that was accepted for ANRE. But I think at least for the distribution, if this was the case, it will be closed similar to the capitalization that was before when the energy crisis hit.

Speaker #2: The network is on around the distribution and the procurement cost I guess it's referring to the supply. What we can answer one way or another so network losses are in line with the targets that are set with ANRE the procurement costs now there is a discussion here we are in line with what the with ANRE is targeted there is a small discussion regarding what happened in the last two weeks but it will be an analysis that we will make post closing and see if the actual procurement cost of the energy was that was due to the closing of the nuclear reactors went over the pricing that was accepted for ANRE but I think at least for the distribution if this was the case it will be closed similar to the capitalization that was before when the energy crisis hit I don't have a concern on on the network procurement as it is.

Alexandru Chiriță: I do not have a concern on the network procurement as it is. On the supply business, it is more of a commercial discussion between the supply Nuclearelectrica. I hope I was clear.

Speaker #2: On the supply business, it is more of a commercial discussion between the supply and Nuclear Electrica. I hope I was clear.

Speaker #3: Ladies and gentlemen, at this time we will begin the audio question and answer session. Anyone who wishes to ask a question may press star followed by one on the telephone.

Operator 2: Ladies and gentlemen, at this time, we will begin the audio question and answer session. Anyone who wishes to ask a question may press star followed by one on their telephone. If you wish to remove yourself from the question queue, then you may press star and two. For those participating in the question and answer session, please use your headset when asking your question for better quality. Anyone who has a question may press star and one at this time. As a reminder, if you would like to ask a question, please press star and one on your telephone.

Operator: Ladies and gentlemen, at this time, we will begin the audio question and answer session. Anyone who wishes to ask a question may press star followed by one on their telephone. If you wish to remove yourself from the question queue, then you may press star and two. For those participating in the question and answer session, please use your headset when asking your question for better quality. Anyone who has a question may press star and one at this time. As a reminder, if you would like to ask a question, please press star and one on your telephone.

Speaker #3: If you wish to remove yourself from the question queue, you may press star and two. For those participating in the question and answer session, please use your headset when asking your question for better quality.

Speaker #3: Anyone who has a question may press star one at this time. As a reminder, if you would like to ask a question, please press star one on your telephone.

Speaker #1: Thank you so much. We can stay one minute longer, but I don't have any questions. Keep in mind we're always here. Some of you requested meetings with us prior.

Alexandru Chiriță: Thank you so much. We can stay 1 minute longer, but I don't think there are any more questions. Keep in mind, we're always here. Some of you requested meetings with us prior. We always said, yes, we are always available, very transparent with everything that we do. We keep a very optimistic outlook for this year. I think things will go better. Let's see what next year will hold in for us. But for 2026, a positive outlook. I think we can have a positive outcome above expectations as always. We'll keep pushing on investments. This is the most important part. Keep tuned. We will have more announcements regarding the group strategy and new projects quite shortly. Thank you.

Speaker #1: We always said yes we are always available very transparent with everything that we do. We keep a very optimistic outlook for this year. I think things will go will go better let's see what next year will hold in for us but for 2026 a positive outlook I think we can have a positive outcome above expectations as always we'll be keep we'll keep pushing on investments this is the most important part and keep tuned we will have more announcements regarding the group strategy and new projects quite shortly.

Speaker #1: Thank you.

Operator 2: Ladies and gentlemen, the conference is now concluded and you may disconnect your telephone. Thank you for calling and have a good evening.

Operator: Ladies and gentlemen, the conference is now concluded and you may disconnect your telephone. Thank you for calling and have a good evening.