I think we can start, but before that, please let me introduce myself. My name is Valentina Dinu.

I am Investor Relations Officer. This is the conference call for the presentation of the financial statements for the first semester of 2026.

With your permission, I would like to inform you that this conference call is going to be recorded for the purpose of posting the audio file on the website in order to allow full access to everyone who might be interested. Thank you for your understanding.

With me, Mr. Daniel Adam, CFO of Nuclearelectrica.

He is going to deliver the presentation, and then we can have questions from your side. This being said, Daniel, the floor is yours.

Thank you.

Hello, everybody. We'll present today the reviewed individual and consolidated financial statements for the 6-month period ended June 30, 2026.

I will jump to the 6-month financial results highlights. The net profit for the period was 1.

almost 1.2 billion RON with 370 million RON versus last year, 2025, and above the budget with 26 million RON. Just a note here, the company absorbed in the first half of the year the effects of the unplanned shutdown of Unit 2 due to the transformer issue.

Going back to the results, we have an increase from sales of electricity, plus 2.7%. This is coming from better average selling prices, which increased with almost 13% due to a more favorable trading mix, and also compensated by a quantity lower with almost 9%.

This is a effect of the unplanned shutdown of Unit 2, and also, partly in this period, we had the planned, this time planned, shutdown for Unit 1, which this year was longer than usual due to some preparation we are doing for the refurbishment of Unit 2, Unit 1. The financial result was higher with 51 million.

We had an increase in interest income. Also, the interest rates were quite high in the first half of the year, and a positive impact from currency exchanges.

Windfall tax was, as you may know, eliminated starting the second half of last year, and this provided a reduction with 500 million RON, and we had a small saving in spare parts, and so on. The decreases, as I already stated, purchased electricity, since we had to make up for the lost production we had from Unit 2.

We have an higher depreciation and amortization, as you may know, at the end of last year we revaluated the real estate assets. We have an increase in operating expenses of 61 million, mainly driven by the ANDR contribution.

They increased since October last year the tariff of €4 per megawatt, coming from €2 per megawatt prior. Of course, due to the higher results, we have also higher income tax expense.

I will skip this slide since we kind of went through the main deviations here. As you can see, also in this waterfall presentation, the biggest effect of the better result this year compared to last year is the windfall tax.

On the revenue side, higher sales electricity and financial result, and compensated by some negative deviations on the costs, namely traded electricity, depreciation, other operating expense, and income tax. On individual versus consolidated financial performance, still the results situated above 1 billion, 1.1 billion lei almost.

We do have some consolidation effects coming from sales of energy made to EnergoNuclear. We have some processing services invoiced by our uranium processing plant, which are compensated by revenue recognized by FPCU, personnel cost of subsidiaries, and so on.

The deviations are quite small versus the individual due to the smaller size of our subsidiaries. In terms of financial position, we have an increase in non-current assets of 240 million RON, or almost 2%.

960 million coming from an increase in net value of tangible assets. 1.4 billion almost represents the net impact of the inflows and outflows of tangible assets from the reporting period, mainly inflows related to the investment projects, and the biggest one there is the Unit 1 refurbishment project.

We have a net decrease of 404 million, which represents the expense of depreciation and impairment of fixed assets. And 700 million represents the current portion of the loans granted to subsidiaries, which has been classified as part of the current assets due to the below 1-year time horizon.

The current assets have increased with 20%, 879 million RON, mainly due to the increase in other assets measured at amortized cost, resulting from the recognition of the short-term portion of the loans granted, and 344 million due to an almost 13% increase in cash and bank deposits with a maturity of more than 3 months. Non-current liabilities increased with 18 million RON, increase related to update of liability provisions, like for the DICA storage and the low radioactive waste.

Current liabilities, we had an increase of 1 100%, mainly due to the recognition of the dividends payable for 2025, which amounted of almost 1.2 billion lei, payment which was effected in July 2026. Then on the equity, we have the normal increase through retained earnings.

On the individual versus consolidated financial position, also here we have a small impact of the consolidation, where the consolidated equity is increased with 444 million lei versus the individual. The difference is mainly on non-current assets.

The difference is mainly represented by the cancellation of intragroup transactions, loans granted, and shares held in subsidiaries, of course, net of the subsidiary's fixed assets. On the current assets, we have the elimination of the intragroup transaction that I mentioned also on the previous slide.

In the equity, we have the retained earnings from the subsidiary's financial results following the adoption of IFRS. On the total liabilities side, we have the trade payables of the subsidiaries remaining after the elimination of intragroup transactions, mainly the JP Morgan loan contracted by EnergoNuclear last year and the payables to capital asset suppliers of our Feldioara company and Nuclearelectrica Serv.

On the sales of electricity, we have an evolution of plus 71 million coming from first half of 2025 to 2026. As previously stated, we had a better price coming from different mix, but decreased by almost 9% lower quantity due to the unplanned shutdown of Unit 2 during the first half of this year.

In terms of sales structure, we can see versus last year an increase in all the markets: competitive, spot, and also the average. We have a significant increase.

On competitive market forward, PCCV, the quantity of electricity sold in 2026 represented 85.6% of the total sales, compared with 89.8%. The average selling price during the reporting period was 578 almost, an increase of almost 13%, as we previously discussed.

Also, the spot market, the quantities increased represented 14% of the total volume, and average price was almost 609, compared with 550. This we are seeing also a bit of the Iran issue, which impacted the gas, which also impacted our energy prices in the market.

Now on the OPEX, we have an OPEX of 1 billion 654 million, lower than last year with 274 million RON, but with 73 million below the budget. Increase in costs in the period versus last year are coming from depreciation and amortization, 66 million; cost of traded electricity, we mentioned prior, 111 million RON; and the ANDR contribution, which increased in October last year.

The windfall tax decrease of almost half a billion, slightly over half a billion RON, and we had an lower cost of uranium due to the fact that due to these outages of planned in Unit 1 and unplanned for Unit 2, also the consumption of fuel was lower. The cost with the spare parts, we have a decrease of 24% versus last time.

On the CAPEX side, we had an CAPEX spending of 1 billion 360 million in first half of this year, slightly lower than H1 2025, which was 1. almost 1.4 million billion RON, and this compared with the total investment program for the year of 3 billion 421 million.

We have a degree of completion versus similar previous period. This year, we have 39.8% versus last year where we had 41.3%, but of course, this depends on the heterogeneity of the investments.

In first half of the year, the investments were made according for the planning. Some major aspects related to the main investments and the long-term strategic projects: Unit 1 refurbishment in the first half of the year, regarding the EPC3 contract, reactor component manufacturing is advancing ahead of the schedule, and the fabrication of the calandria tube has been already completed.

On April 16, the EU Commission opened, as a standard procedure, especially in all big projects, but especially also in nuclear projects, an in-depth State aid investigation into Romanian State support of refurbishment of Unit 1. In May, SNN announced the completion of the first continuous concrete pour for the permanent structures, the most complex operation of its kind carried out at the plant since the construction on Unit 2.

3,470 cubic meters of concrete were used to raise up the foundation. That's around 380 trucks of concrete.

In July 2026, SNN announced through a current report that the board of the European Investment Bank approved on 15 of July the granting of an €800 million loan for the refurbishment project. On Units 3 and 4, in the first half of 2026, through an extraordinary general meeting of shareholder resolution, SNN was approved acting as a guarantor for EnergoNuclear in securing a loan up to €46 million, equivalent in USD, from US EXIM.

By a different resolution in July 2026, the shareholders approved the loan agreement of up to €75 million between the EnergoNuclear as borrower, SNN as a guarantor, and Export Development Canada as a lender, for the financing of Units 3 and 4 project. On SMR, in February 20 2026, the SNN shareholders approved the adoption of the FID of the Doicești project.

In July 2026, SNN shareholders rejected the approval of the initiation of steps to assess the feasibility of updating the implementation strategy for SMR project. On CTRF, the Tritium Removal Facility project, in the first half of 2026, KHNP continued negotiating contracts for the non-contracted procurement packages, reaching 18 signed contracts out of 20 23 by the end of June.

Construction activities were focused at the 95m level, encompassing structural metalwork assembly, formwork installation, bash hammering, and so on. On June 2026, SNN announced that commencement of works on Europe's first Tritium Removal Facility located at Cernavodă, developed partnership with Korea, I think it's earlier.

On the medical isotopes project, in the first quarter of 2026, CNCAN approved the design change related to the project implementation. Also, a number of documents pertaining of conceptual design stage were reviewed and approved.

The nuclear safety reviews were completed and led by the identification of the best solution for certain equipment, so that the nuclear safety and production continuity will not be affected. On the technical performances, in terms of combined radioactive emissions for both units, everything is in green.

We are at a cumulative level of 2 millisieverts, versus a normal limit of 10. In terms of nuclear fuel burnup rate, we are in the normal parameters and envelope.

Of course, you can see the effects in May and June, on the planned or unplanned outages. The same here on the capacity factor.

Both units were affected by the planned or unplanned outages in May, June. That's all.

Thank you very much for your attention.

Do we start with a question on the chat? I have a question from Cristian Petre from NN regarding the progress on the refurbishment of Unit 1 compared to schedule.

It will still be finalizing in 32 months as it is scheduled. It was mentioned that it is going ahead of schedule, but achievement degree is 39%.

Yeah. On the first question, we are with the total schedule on time and also on budget, the timeline of the project to have the commercial operation date in summer of 2030 didn't change.

What we mentioned that is going ahead of the schedule is a part of the refurbishment, meaning the fabrication of the calandria tubes. In terms of the planned versus the achievement, we are comparing the achievement in June out of the 100% schedule for the year.

Is not a lack of performance. It may just be from the fact that more works are scheduled during autumn than in spring.

In terms of project performance, we don't have any red flags up until now, neither on time, neither on budget.

Thank you, Daniel. If you have any other questions, please.

Okay. If no other questions, thank you very much for joining us in.

We are going to publish the presentation, the audio file, and, of course, the transcript of this conference.

Oh,

we have one more from Cristian

Petre.

Can you comment on drought and force majeure?

Sure. As I'm sure everybody knows, yesterday it was also the controlled shutdown of Unit 2 due to the severe drought that we are experiencing on the Danube.

Unit 1 was also shutdown in a controlled and safety manner on 28 of July. This is coming on historically low levels of the Danube.

Basically, the Danube is a third, and not only in Romania, across the basin, it's a third of the multiannual July or August levels. I think a week ago or something like that, we already surpassed the record for low levels, which was standing since 1985.

So, 40 years ago, something like that. Unit 1 was stopped in end of July, Unit 2 yesterday.

There were a lot of efforts done also by the government to address a bit some of the issue, and they did had a temporary benefit. As a general rule, there is a project which is mentioned also in the support law for Unit 3 and 4, Bala 2 underwater dam, I think it's a good explanation, that would solve this issue and provide the necessary water also for 3 and 4.

That project would increase the levels available in Cernavodă with more than 1 meter, as far as I understood. On force majeure, following the stoppage of Unit 1 in end of July, the company started the process of obtaining from the Chamber of Commerce, the branch of Constanța, a force majeure certificate for energy delivery contracts.

These were awarded or issued to us this week, actually. This week.

Following that, we notified our customers that as of Wednesday, we are declaring force majeure until the end of August, I think 30 of August is the exact date. Of course, if the situation and the drought persists, probably we'll have to extend that.

We don't have a clear prognosis on the water on the Danube. There is some expectation that things will improve towards the end of August or beginning of September, but we shall see.

Far, there are forecasts and not certainties.

Okay. Thank you, Daniel.

If there are no more questions, as I said, we're going to publish the presentation, audio file, and transcript on our website by the end of this day. We do have one more questions.

Irina Railean, please.

Good afternoon. Yes, I also wrote it in the chat, but raised the hand just to make sure it will be addressed.

Regarding if you have any estimate of the financial impact of this forced shutdown? How do you think the profitability will be impacted, if you have a guidance for us at this point?

What this force majeure exactly implies for Transelectrica for Nuclearelectrica from the commercial perspective? Will just certain amount of revenues will not be recorded in Q3?

If there'll be any penalties or any obligations for any quantities to buy at the market price to honor them? If you could a bit detail what should we expect from next quarter's financials and how the impact will be?

Also if you have any guidance on the shutdown costs and restart costs for this operation? Thank you.

We don't have, at least for, how to say, for investor use, they're not, how to say, certain enough to disclose this. Our expectation is that this will be solved in beginning of September, and depending on how long it will be, then a more thorough and precise calculation can be done, which, of course, will share with you at a later date.

What I can say that both the profitability and cash flow can sustain some hits. In terms of what force majeure implies, according to the law, because this is part of the Civil Code, actually, based on this force majeure certificates, and of course, as also the government declaring the southeast of the country this alert and emergency situation, that means that we are allowed, since Wednesday, I think it was this week, to suspend the execution of our sales agreements due to this reason.

This will allow us not to be obliged to buy from the market the energy that we cannot produce in the reactors. Mind you, we did that since the stoppage of Unit 1 until we had the certificates of force majeure.

We did buy from the market in order to honor the agreements. I think it was another question?

Any penalties also? You will not have to pay any penalties after this?

That's basically the force majeure, that's why you're suspending the contracts, without penalties. That's the whole point this mechanism exists in the law, that they cannot [unclear].

Thank you. That's perfectly clear.

Thank you.

Yeah.

Regarding the costs of shutting down and restarting production?

I don't want to say that we don't have an internal view, but it's not fully baked and certain enough to make it public at this stage. It also depends quite a lot, because one of the effect that we have is that we are not selling energy.

That's the impact. This is highly dependent on the time that the water levels will be sufficient enough to restart our reactors.

Then we can draw the line, make the clear calculation, and probably we'll announce it in the next call. We do have an internal view based on some assumptions, but I'm not comfortable enough with the assumptions to share it with you.

Understand. Thank you.

You're welcome.

Accounting question, if force majeure and unit's

closed? [unclear] Do

we

record then depreciation?

We will record depreciation, yeah. Basically, the force majeure, it's applied on the commercial contracts, because there is a procedure before you ask the Chamber of Commerce for a force majeure certificate.

Basically, you are notifying the customers, and they are giving you a certificate for each agreement that you want to notify. Force majeure will not have an impact on how we calculate and book depreciation.

Yes, that's it.

Thank you very much. Hope to see you next time for the November reporting for the third quarter.

Have a great afternoon. Thank you.