Hello, everyone. I'm Raluca, I'm the Head of Investor Relations, and together with the entire Electrica management team, I'd like to thank you for joining the Electrica conference call and live webcast to present and discuss the full-year 2025 financial results.

Those of you who are connected only by phone, please download the presentation in PDF format available on our website on the results and presentations section. The participants connected online can address written questions on the live webcast or can intervene live on the Q&A session which will be at the end of our presentation.

Kindly note that since the entire conference is being recorded, all participants will be in a listen-only mode, the attendees' voices will be disabled. Should anyone need assistance during the conference call, you may signal an operator by pressing * and 0 on your telephone.

I remind you that the recorded presentation will be available on our website starting latest tomorrow, and the transcript as well as soon as possible, of course. We kindly ask you to see the disclaimer on slide 3 of the presentation.

We'll begin the presentation of the financial results, as I said, followed by a questions and answers session at the end. You can also email us questions, should you wish so.

At this time, I'd like to turn the conference over to Mr. Alexandru Chiriță, Electrica's CEO.

Thank you.

Thank you, Raluca. It's a pleasure to welcome you all today.

2025 was a year in which we consolidated what we have built and took meaningful steps towards what lays ahead. The report you're about to review with us carries particular significance in this regard.

It is one of the clearest expressions of how we approach the company's development, not solely through financial results, but also through the impact we generate in the economy and in the society. The integration of these dimensions reflects a business model that is becoming increasingly mature and connected to the reality in which we operate.

The financial performance of 2025 confirms this trajectory. Electrica Group recorded preliminary net profit of 1.2 billion lei, exceeding the prior year by almost 160%, and in operating revenues we surpassed 12 billion.

These results demonstrate the company's capacity to grow in a complex environment and to capitalize on market opportunities. Investments remain essential to this evolution.

In 2025, we invested more than 878 million above the planned levels. We continue to modernize networks and prepare the system for the integration of a larger share of renewable energy.

One project I'd like to highlight is the finishing of Satu Mare 2 photovoltaic park, and at the same time we made relevant progress in all our green park development. We will go through them more details later.

We initiated procedures for the development of 15 battery parks with a total estimated capacity of approximately 1 GWh. Storage is becoming a critical element for the balance of the energy system, and these projects position us in a strategic area for the years ahead.

To support this stage of development, as you well know, last year we had our inaugural green bond issuance of €500 million. Interest was strong, with 150 institutional investors from 31 countries, and the level of oversubscription was exceptional.

Demand at the final price exceeded the offer by more than 11.5 times, a record for Romanian corporate issuance. We also did a syndicated credit facility worth 3.1 billion, supporting both the refinancing of existing facilities and the continuation of our investments program.

Our results were also reflected in the share price. In 2025, we reached a record level of 26 lei, and this year we actually reached 34 lei at maximum, it's currently running at 30 lei, a signal of confidence from the capital markets and a validation to our strategic direction.

Other relevant milestones that we have in 2025 is the memorandum that we signed with Romgaz to build 400 MW of green projects in the next years to come. Of course, 2025 was also full of challenges, from energy market dynamics to broader economic pressures, and today we are in a similar situation.

The market is moving, but I see Electrica teams that have demonstrated that they can navigate this context and transform difficulties into steps forward. I want to thank all our colleagues for their commitment and for the results achieved.

Looking ahead, our priorities are investments in infrastructure, the development of renewable energy projects, and the integration of storage solutions. We want every project to contribute to a secure and efficient energy system, as well as to the development of the communities that we operate and beyond.

Electrica Group will continue in the same direction: building, investing, and delivering results. I'll move now to the presentation, to slide 5.

We see that the group structure is similar today. What we added on was the pipeline of projects.

We can have an overall look on what happened. On the electricity distribution, we have 4 million [euro?

users?] , we distributed roughly 18 terawatts, and on the supply we are roughly the same, 3.3 million, a market share slightly decreased, but with a similar electricity supplied on the retail market.

What is relevant here is that all projects are in line with their estimations. We can actually skip to slide 8, where we can have a better view of the green growth pipeline.

I think we can explain better here. I'm sure some of you have questions regarding to this.

Great. We have the estimation completion dates, where we should be.

We also have the CFD scheme we mentioned in previous conferences. Now we are adding this battery energy storage system projects, we added 1,000 MWh of battery on multi-site projects.

We have two important memorandums. One is with Romgaz, where we estimate 100 MW in Q2 next year, and one is with Liberty, where we estimate another 50 MW next year.

By 2030, in our projections, these will be finished. I want to underline that for the Liberty project, we have taken in consideration the fact that the project can have two directions.

One of it is to serve the actual Liberty complex, the other is to trade the energy on the market. It will be a project that won't have any issues in operating, like all the other projects that we have.

Going forward, let's look on the supply. It's a bit difficult.

We have some summary consolidated financials. 2025 was the best year for Electrica.

We had the best results. You can see it here in revenues, you can see it in EBITDA growth and margin performance, and also in net result and net result margin, and the net debt to net cash.

On the net debt and net cash, we would like to underline the fact that we are still waiting to clear the subsidies. We're still roughly at €500 million, and although we actually got paid from time to time, we still are waiting for a confirmation on this manner.

Let's go to the next slide. Let's see the distribution at 15.

The distribution segment went very well last year. We see an increase in EBITDA, roughly 300 million.

We made all the investments necessary. We don't have an issue in operating.

Now on this segment, and this is a debate that we're always having, we're surpassing the 100% investment necessary, but the actual need of the market is above that. We are currently discussing with the regulator the possibility of doing more investments that is planned.

Roughly it's €150 million per year. We can go above.

The actual need should be two or three times bigger. Raluca, yeah, you can go to the supply segment, 21.

Now, we see a good result on the supply business, a recovery from 2024. Now we are on a liberalized market, and with this we see a small decrease in total market share, but the overall supply market is still stabilizing.

We see various alternations of pricing due to external factors. We don't have an issue in internal factors, but we are heavily influenced on external factors.

We see the energy price is increasing again. That will affect the overall consumer, but the business is stable, and we don't see an impact for 2026 in a negative way.

We see that as stable. is actually fluctuating from non-household to households, and the overall market supply is becoming tougher, but overall I think things are going as planned.

We can go at 22 to see the market shares. This is from December.

Let's see on the good news. We can actually go to the production segment.

Okay, 28, the production segment. You can see here all the energy parks that are being currently developed.

Things are going also very well here. We're doubling in size.

We're expecting this year to have the best results yet, as we will be finishing the two other parks, hopefully. We will also see progress in the Crucea park.

The Crucea park will take some time. There is, let's say, a longer delivery time on the turbines, but it's still under our estimated timeline.

We will see an increase in the production segment. If everything goes well and we don't expect any issues, by the end of the year we'll have more progress here.

On the group liquidity, although we have, let's say, the obstacle with the subsidies, we're stable, we don't have an issue per se. We also had the confirmation from Fitch for our rating, still to stable.

We're planning this year to issue at least a bond. We are going to the EGMS for €1 billion in order to expand and support all the projects that we have planned.

This is a very important aspect, as by the time the subsidies will be, let's say, paid, we'll have a more stable debt to net ratio, and we can take the bond without a problem. We will come back to the market either with a green bond or a conventional bond, depending on the projects that we will decide to invest along with our shareholders.

On the distribution of dividends, 31, our proposal here is to pay dividends of roughly 100 million. It's the same situation that we were in the last few years.

We're increasing the dividends, we're trying to get back to what it was before, but we need to do this with pace, because we don't want to borrow money to pay dividends, as it wouldn't make sense to do this. As you can see, the overall dividends are increasing, and I think by next year or two years ahead we can go to a more normal dividend policy.

As main events, I don't know if we need to cover per se, the group is stable. You saw that we have a new CFO is invited and present with us today, Mr.

Costin Iordache. We welcome him to the team, and we'll follow up on this on a later presentation.

On climate risk assessment, we introduced some slides explaining exactly where we are with the green projects, the green bond issuance, the green bonds listed on Luxembourg and Bucharest Stock Exchange. We have a sustainability strategy by 2030, we have a green finance framework, we're in line with all the compliance measures necessary.

Volumes are good in respect of the Electrica's shares. We remained in FTSE Russell indices.

The liquidity is good, but overall we could expect in the near future if the overall Bucharest stock market won't be more liquid to interfere the problem of loss of liquidity. Today we are fine, we don't have a problem, I don't think we'll have a problem for 2026 either.

Last year, I think we were in second place on the stock market after Transgaz, and it was almost double from the BET-TR. We expect that this year the overall course will be stable, and we're doing everything possible to maintain the share price in an upward trend, respecting on our promises.

I think that's kind of it. If we have questions, of course we can take them, either in writing or on a call.

Let's wait for a minute.

I'll read the questions. The first question coming from Banca Finanția: "Given heightened geopolitical risk from the Iran-related conflict and the associated power and gas price volatility, how are you stress testing the resilience of supply margins and receivables, distribution network loss costs, and group liquidity under a new price shocks?

In a scenario where volatility drives political pressure to reintroduce price caps or subsidies, what is your base case view on Romania's likely policy response and its implications for profitability and cash flow visibility?" Now, it's quite a broad question.

Let's say from the energy market's perspective, Romania is not in a bad place. It's quite stable.

Of course, the prices of the energy are affected as they are everywhere else, but we don't foresee a different problem that we already have in general from a operational point of view. It shouldn't affect the energy market in relationship with Electrica.

We will see probably high volatility, we might see other impacts in the economics like high inflation. We can see subsidies or price caps depending on the social measures that can be taken.

From a liquidity point of view, we are stable. We already did this in the last four years.

It won't be a surprise for the company. We already have all the reflexes necessary in order to overcome this kind of difficulties.

We are very confident in our trajectory, and that's why we wanted to go to the market, although we have this conflict, I think we can go to the market to raise the bonds and continue the investments. Because overall, it shouldn't affect the normal course of the company.

Now, okay, I see the second question: "Supply EBITDA improved materially and net results swung positive. Now the electricity price caps ended 1st July 2025, what is the sustainable gross margin in a fully liberalized environment and what hedging procurement policy will you use given the described low forward liquidity and high volatility?"

What we can actually answer after the market was liberalized, the gross margin is roughly 800 million RON. We have an EBITDA that is positive and stable at 400 million RON in a more careful scenario.

Next question: "Could you please elaborate on the key drivers behind 310 million increase in distribution other operating costs embedded in your 2026 budget? The magnitude appeared unusually high, any breakdown or phasing would be helpful."

I will ask Gianina to give a clear answer.

As for estimated for 2025, the level of regulated revenue correction that we expect to be recover in 2027 is around 400 million RON. It is a negative correction due to the distributed volumes that increase with around 240 million RON, and the network losses that we achieve a lower quantity and a lower price, we'll have negative correction of around 100 million RON, and also some correction of around 60 million RON due to the other revenues that is higher that we already received in the tariff.

The main reason for this increase of revenues is due to the distribution tariff that will increase with 20% and the distributed volume.

Thank you, Gianina. We can go to the next question.

You didn't answer on the supply side, right? Okay, "On the supply side, could you elaborate on your strategy to mitigate margin pressure and indicate where your current supply margins stand relative to previous regulated levels in both electricity and gas?

EBITDA margin guidance for both electricity and gas would be very helpful as well." An answer here is more difficult as it contains some commercial information.

I'll put it in a general manner. On the supply side, because there is a lot of pressure, we see it in two different components.

One component is pressure from the market and other players in the market, which have a lower pricing, but this doesn't affect us so much as our majority base household has a low consumption and the impact in the price is quite low. We won't see, let's say, a drop in the market share.

We will probably see a decrease depending on what's happening on the market. Overall, I don't see any issues on this.

Of course, again we can go back to the subsidies and the fact that as long as the subsidies are not paid, there is a financial pressure on the company, on the margins. Our overall expectation is to have this fixed by mid-year at least in half.

If we can recover half of the amounts by, let's say, July, things will go on a better side.

For the revenues correction that I have received here a question for 2027, I told already that is around 400 million RON, and 60 million RON is due to the other revenues. So, 400 million without taking in consideration the network losses capitalized.

This network losses capitalized will be a positive correction. Thank you.

I'll take a question: "Could you please elaborate on the rationale behind the partnership with Liberty Galați for the development of a 500 MW project, particularly in the context of the company's ongoing insolvency proceedings? How should we think about the associated operational and counterparty risks and what are key strategic benefits underpinning this decision?"

There is an opportunity there, and that's why we went in and made the memo. Remember, this is a memorandum of understanding, it's not, let's say, binding commercially in any way at this point.

Today, we are making an analysis on the actual strategic rationale. Liberty can be one of the largest industrial consumers, and they have planned assets, they are within our concession area, and they can also benefit from this type of investment along with us.

They're not in insolvency, they're in concordat. It can create an issue in managing the legal situation.

This doesn't mean we can't take full measures of protection for the group. We don't have an exposure.

We have operational independence, the renewable assets will be standalone, they will be grid-connected, and they will not be dependent on the steel plant. It's just an extra benefit to put this kind of investment in the courtyard of this kind of industrial consumer.

There is no capital deployed. There is a due diligence in process, and when we have enough data, we will share them with you, everything should be clear.

I don't know if we answered this, but I'll read it again: "Thank you. Two questions.

How do you see the dynamics of the business in view of the impact of the events tied to the war in Gulf in regards to distribution and supply business?" As I mentioned, it shouldn't affect directly the group.

It can, of course, affect the price, this is already happening, but the overall impact would be with the consumer and not the company. The second question: "Could you give us more info on the business drivers of the cogeneration project in the southeast of Romania?

I think this is a reference to the Craiova bid. There, we put a bid for the project.

We are still waiting on an answer on the result of the bid. What I can say here, as it's currently under bid, we have some restraints.

What I can say is that the project is fully aligned with Romania's national energy strategy and EU directives on high-efficiency cogeneration and energy transition. With the use of natural gas as a transition fuel in hydrogen-ready equipment, the project can and will ensure long-term regulatory compliance and positions Craiova at the forefront of Romania's clean energy transformation.

With this, Electrica could be one of the companies that will be continuing this energy transformation with clean energy. All installation will comply, of course, with all the orders, regulations, and it will be seamlessly integrated in the national electricity system.

It's a very complex project, but it shouldn't be a problem for us. It makes sense if you look on the overall history of Electrica in the last four years.

We are always saying that we're going through a transformation. This is part of that transformation.

Electrica is no longer just a distribution company, it's no longer just an utility, it's becoming a platform, and it's expanding its entire ecosystem to other areas that of course were not accommodated with." It seems that: "Your metrics are well placed versus Fitch rating update triggers.

Would Fitch allow your rating to exceed the one of Romania? Are you actively seeking a credit rating upgrade, or do you prioritize growth?"

We already have a higher rating than the sovereign. The sovereign is BB- negative, ours is BB- stable.

We are looking on pushing this to the next level, I think. In the near future, we can see it to a positive if some criterias are met.

Looking back on different question: "Could detail why the budget proposal for supply is so low? Could you clarify CPT price assumptions included in your budget and how this compares with ANRE parameters?

How do you currently see electricity prices evolving through 2026 Romania and regional, and on internal assumptions?" I'll start with 3.

One month ago, prices were stable and we saw them on a decreasing level. Our estimates were that by the end of the year, price will actually reach somewhere around €100, but this changed significantly with the conflict.

Now we see an upward trend, a downward trend, it's volatile, we're back, let's say, where we were in the last few years. It's not something that we're not accustomed to again.

Where the price goes, we can't say, because I don't think anyone knows. If the conflict escalates, the price will go up.

If it stops, the prices will go down. If you analyze the pricing independently, you would see more production capacities entering into function, you will see more energy on the market, you will see an increase on the economy, and most likely the prices would go down.

We're not in that scenario anymore, and until we get back to, let's say, a normal geopolitical system, we can't make an estimate. I will ask Gianina to help with question number 2.

For the network losses, the price recognized in the tariff 2026 is around 700 RON per megawatt hour, it's exactly 695. In the budget, we put with 10% more due to probably some crisis of the prices, but the methodology provide that in case of crisis, the regulator will recognize the achieved price.

Thank you.

Why the budget is so low, we went in with a conservative budget. You saw this also in the last three three years.

We like to be very careful, as the market is unstable, and it's better to have a more prudent approach based on negative scenarios than to go above and beyond making promises that we're not sure we're going to keep. The results that you see in the last three years, I think can confirm that we actually do our best in going over all results promised at any time.

"Now, could you please provide more details of the drivers behind the lower 2026 outlook for both distribution and supply? The decline appears significant, particularly in light of the relatively strong visibility on regulated revenues in distribution and only a moderate increase in energy procurement costs."

The answer is similar. We like to make a very prudent approach in this respect.

We like to take in all negative scenarios and go with them forward, tackling one by one, fixing it, and then have a better result. "On the supply side, why we note a 15% contraction in gross margin?

The overall profitability appears to decline more sharply. Additional cost pressure.

Could you elaborate on what other cost components you expect increase across both segments and how these are reflected in our 2026 assumptions?" The biggest pressure is from financial costs.

Yes, and of course on the balancing market. We still have a lot of volatility there, it's not a stable market, things can, let's say, go south at any moment.

We saw this in 2024. We hope not to see it again in this year, but again, we're running negative scenarios in which the market is unstable.

There are two questions that, let's say, we're not at liberty to give the answer. It's in relationship with EBITDA margin, IRE guidance for the storage projects and the RES projects.

What we can say is that they are fully aligned with financial projections, due diligence, and development, they are profitable and won't be any problem for the group. Let's see if we missed any questions.

We'll wait another 2 minutes. We can take also calls.

If we took all the questions and there are no other remarks, we can check. Anyways, we're always here to answer any questions that you have.

You can contact Raluca, you can contact the management. We are always fully transparent and available to discuss.

As long as we have new informations on the projects themselves, on the vision that we have for Electrica to 2030, we'll communicate to the market. Hopefully, this trend that you're seeing now will keep a pace, and we'll see Electrica going forward, expanding and doing better every year.

I'll pass on to Raluca back. Thank you.

Thank you, everyone, for joining us. You'll find the presentation, the recording latest tomorrow morning, the transcript as well.

Please feel free to contact us at [email protected]. You can find all the documents that we posted for the Annual General Meeting of Shareholders and that were posted on Friday afternoon: the budget, the financial statements, all the reasonings behind the subjects submitted for the approval of the shareholders on our website in the General Meeting section, of the investor section.

Thank you very much for joining us, and see you next time.