Hello. I'm Raluca, Head of Investor Relations, and together with the entire Electrica management team, I'd like to thank you for joining us today for the conference call and live webcast to present and discuss the Q1 financial results.

Those of you who are connected only by phone, please download the presentation in PDF format. It's available through the conference or directly 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 sessions. You can also send us questions through email.

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, you may signal the operator by pressing star and 0 on your phone.

The recorded presentation will be available on our website probably tonight, but latest tomorrow, and the transcript as well as soon as possible. We kindly ask you to see the disclaimer on page 3 of the presentation as well.

We'll begin the presentation of the financial results and of our strategy, and then it will be followed by a questions and answers session. At this time, I'll turn the conference over to our CEO, Mr.

Alexandru Chiriță. Thank you.

Thank you, Raluca. Hello, everybody.

Dear ladies and gentlemen, like to thank you for joining us. We will present the first results of this year, and we would like to have your insights and perspectives as we highly value them.

At the end of the presentation, we will be taking questions, audio or written. As always, we are at your disposal and after the conference at any time through our department.

Essentially, in the first quarter of the year, financial and operational performance supports the direction we set for the companies within the Electrica Group. We have solid financially and disciplined and ready to continue our investments.

In line with our internal expectations and our ongoing efficiency-driven efforts, I am pleased to report that we are meeting our operational key performance indicators. The achievement of a net profit of almost to 310 million RON, approximately an 57.8% increase year-on-year, and the EBITDA exceeding 578 million RON, a 25% increase, validate the efficacy of our strategic decision toward an integrated business model.

This performance is a direct result of our efficiency measures, rigorous processes, and consistent execution across all business lines. Now, on the supply segment, which had the largest weight in the variation of EBITDA and where I am directly involved as Chairman of the Board temporarily, I can confirm that we remain the market leader, ranking second in terms of supplied volumes and first in the total number of users.

However, I must express some concern regarding the current state of the electricity supply market in Romania. We are still going through a transition phase.

We are carefully going with this. We still have to recover more than 2.5 billion RON owed to Electrica Group from the supply sector, but we are sure that even though it's not a real competitive market at the time, in due time, we will be recovering this amounts from the state and we will get back to a fair environment.

Our goal is to operate in a truly competitive market, and we want to offer a competitive energy price to the consumer where the added value is the most important thing both for them and our investors, but this has to be fully met with the cooperation of all parties involved. Nevertheless, I have full confidence that these things will find themselves with a solution in the next few months.

On the distribution segment, as always, we continue to provide a steady flow of value. We distributed to more than 4 million users in this quarter and the first quarter of last year, with an increase of 1.5%, if I'm not mistaking.

I would like to clarify point. While some data might suggest slight delays in network investment execution, I want to assure you that we are fully in line with our planned works approved by ANRE.

The commissioning is done through the entire year, and we are actually making consistent efforts to identify solutions to scale up our investment levels in distribution, ensuring the resilience of the infrastructure across the counties we serve. We have no worries that we are in line with the plan.

We are going above the targets of investments, and we are in an ongoing negotiation with the regulator in order to increase even more the level of investments that distribution is making. On the production segment, we have accelerated the development of our renewable and storage portfolio, as with the overall objective of supporting the energy sector and Romania's economic development, strengthening long-term energy security, and adding the energy transition.

Renewable energy projects are a central focus for our team. While we are experiencing a slight delay in the production calendar due to factors that are beyond our control, we will do everything in our power to catch up and be in line with what we promised.

We maintain our target of reaching 1 GW of production capacity by 2030. Currently, we have approximately 300 MW in various stages of development.

We also have an MOU with Romgaz for 400 MW, and also in this context, we are in the process of securing the first 100 hectares of land for the construction and starting of a joint greenfield project. At the same time, we're observing the proceedings for the objective of strategic interest for LIBERTY Galați.

We are waiting on a decision on what will happen there. Regardless of the final decision concerting the objective, I think it is with legal feasibility and it is economically viable that we will proceed with this investment of 500 MW in any case.

We believe the location is highly suitable for such an enterprise. The decision is backed up by a strong economic foundation, and it is ensuring the long-term stability and profitability of the group.

That Vulturu and Satu Mare photovoltaic parks have been operational since the beginning of July last year and in July and October, and at this time, we have in operation almost 50 MW peak installed capacity. For the two other photovoltaic parks, we are closing the EPC contractor.

We're going to start the works on them, we are in line with what we planned. On the battery storage systems, we have total approximately 19 projects.

Four of them have been presented before, roughly 169 MWh. They were linked to the parks that we have, and we have the additional 15 storage projects all over the country totaling 1 GWh.

They are in different phases. We will add them to our map for the next presentation as we think we will have all the paperwork in place by then, and we can actually announce the next phase.

We're doing everything that is within our power to finish as fast as possible, maybe Q1 next year. Lastly, our regional expansion, and we should add this to the map also, our regional expansion strategy remains a key short-term objective.

We currently evaluating opportunities. We are set to start in the Republic of Moldova, and we believe that with sufficient investment, in time, the two markets can actually achieve a significant synergy and work closely together.

Looking ahead, we hold a positive outlook for 2026. We have our concerns that are already priced in the budget for 2026 regarding the economic overall stage, but we continue the investments in the network infrastructure, the digitalization, the renewables production, storage, and improvement of our internal processes will remain our highest priorities.

Our general targets, as you can see, from 2024 have evolved significantly, even from our targets in June 2025 following our successful green bond issuance. We are now discussing within the group for an update for the 2030 strategy, as the targets per se sets then in 2024 are lower, and now we are speaking about more ambitious targets.

We are looking at soon convening the General Meeting of Shareholders to approve major new investments in the months to come. We are pending on the auction from Craiova.

We will announce the market as soon as we have a response. We are pending on a gas power plant at Fântânele, and once we have all the paperwork in order, we will also go to the shareholders for approval.

We have the approval for financing. The financing of €1 billion should be enough at the moment, we're pushing really hard in doing these investments as fast as we can and as feasible as possible.

At the same time, we evaluate, of course, the opportunities that can come up within the energy market that are mainly in line with our core businesses and the ones that go in the same upward direction as we do. We firmly believe that our strategy, our operational discipline, our long-term vision, and most importantly, the professionalism of my colleagues in the whole group, and I would like to thank everybody, which means more than 8,000 employees, will enable us to deliver a sustainable value to our stakeholders and contribute to building a secure energy future for Romania.

We'd like to mention, of course, the fact that we've reached a new peak of share price yesterday at 35.15 lei. I am sure that this will continue, and I would like to thank our shareholders and investors for the confidence that is put in us, and I'm sure that we will not disappoint at any time.

I will now pass the presentation to my colleague, Costin Iordache, the CFO, who will provide detailed insights into our financial performance, and then we'll try to be as efficient as possible and cut to the questions and see exactly what we can help with. Costin, please.

Thank you, Alexandru. As my colleague already announced, the good results of Q1 continue to show for the group.

As a summary, the Q1 revenues increased with more than 20% Q-over-Q. At EBITDA gross, we continue to register an increase.

In the same time, the net results margin continue to be improved. We are going increased from the Q1 20 2025 to Q1 2026, 1.8 to 7 10%.

We have a decrease in net debt due mainly to do a better collection and closing some overdrafts. The EBITDA increases plus 26% was consolidated variation.

It's a positive 118 million driven positive variation from the energy margin. We have a positive energy margin in the distribution segment of plus 95, and we have a positive margin in the supply segment.

There is a pressure on the OPEX side coming mainly from the increased cost in the third-party expenses that has a negative impact of our EBITDA of -20 million RON. In the distribution segment, as the colleague already mentioned, we have a continue increase of EBITDA.

The energy revenues goes up. We distributed more than 4.68 TWh, and in the same time, we have a positive evolution of the value and in the price.

There remains the largest distribution operator in Romania and with more than 4 million users, and we went to decrease the evolution. The network losses cost decreased, and this is a good positive.

In the same time, it's also in absolute value, the network losses decreased. The performance of our colleagues in that distribution operator continue to show the efficiency of our investments, and this elements it's putting us on a good premises for the development of the financial results of the next quarters.

Then evolution of the energy distribution volume, the amount of electricity distributed was 4.68 TWh, increased with 1.5% compares to Q1 2025, with positive developments recorded mainly on the high-voltage level. This is also showing the trend for the future.

Supply segment, EBITDA improved with 20 76 million, increase in energy margin by 37 million mainly from the supply segment increase generated by the market because going out from the scheme, it's allow us to better and efficient way of selling our products. The better collection it's also reflected in a net debt evolution of the supply segment, where we see a decrease of the net debt from 1.9 in 2024 to 1.7 billion million RON in Q1 2026.

During January, February, EFSA has been second-largest supplier in the overall market with this one in terms of supplied volumes. This it's a good results after ranking second of the overall market in the first relevant month of the 2025.

EFSA has been in the third place in December 2025. The comeback of Electrica Furnizare, it's going us assurance that even the supply segment it's going in the good direction.

Overall, the market remains under pressure, and we see it on slide 23. The number of consumption places from the household, it's continue to be under pressure, and we try to identify additional measures that help us to keep the number of the consumption places or to reduce the number of churn.

The pressure from the competitive market, it's there, but the good results we should see that the pressure is not so big on the business segment. Production segment, we can go to the production segment we can see it in the slide number 28, where the general overview it's saying that our production elements are continue to grow.

EBITDA is increasing, showing that we are investing in the right direction. In Q1 2026 is double the results compared with Q1 20 2025.

After we closed the new investments that we are having 100% in the shareholding, it will continue to go showing good results. The group liquidity is going to be at a comfort level.

You see it in the slide 29. Three We have a 3,000 million RON, what it's a total liquidity at group level.

It's higher than what we have at the end of 2025. This will give us comfort.

We are in the comfort zone, and we don't see any pressure from us in the 2026. I want to thank you from our financial results, and waiting for the questions.

Please send us your questions either through the tool, emails, or audio questions as well. We'll wait for 2 minutes for the questions, and then kick right in.

I'll start until we have all the questions uploaded. I will start with one of the questions regarding the Craiova project.

On the Craiova project, we are asked about some economics. Because it's still pending, we will defer the answer to the quickest moment when we have an answer.

Once we have a final answer, because there are still, let's say, technical clarifications, economic clarifications, we will come back to you with the clear plan on how things will be done. At this moment, we're not at liberty to do so.

Another question is that it's regarding the network losses, and it's a comparison between 2025 Q1 and 2026 Q1. Comparing this two timeframes, we have a drop of 7%, we have a slight improvement.

Now going with the next question. On renewables and storage project execution timeline:

In Q1 2026, the reported status for all major development projects are materially identical to the reported in the 2025 annual report. No EPC contract has been awarded, commercial licenses has been obtained, and conformity testing for Satu Mare 2 energy delivered to the grid since October 2025 has not concluded.

Meanwhile, the 2026 CAPEX budget allocation is 800 million RON, 41% to renewable generation. Can you provide corporate milestones with target dates for the next 12 months for each project, specifically when do you expect EPC awards for Bihor 1, Satu Mare 3, and ANRE commercial licensing for Satu Mare 2, and tender completion for Crucea?

Are there specific bottlenecks, supply chain, grid connections, contractor market, explain the lack of visibility Q1 progress? For Satu Mare 2, there are no changes in Q1 20 26 compared to 2025 because the final trial period ended in April 2026.

In this moment, the project is fully operational. On Newtrin Satu Mare 3, the project is currently in the competitive selection procedure phase, but we have an estimate on completion, which is Q1 2027, and I estimate that the EPC contractor will be done in the next month.

The photon Bihor 1, the EPC contract was awarded this week. We are currently closing in the paperwork, we are in line.

For Crucea power park, we have initiated the competitive selection procedure of the provider of wind turbines supply, installation, and long-term service. The estimated completion is staggered.

The first phase, 78 MW, has a current target of Q4 2027, and the second phase, of 43 MW, has a Q2 2029. Here there is a discussion because the supply chain it's much difficult, and it depends on how we in the end realize the negotiation for it.

I'm sure we'll find solutions in order to maintain our targets. There are no actual supply chain connection or contractor bottlenecks affecting these projects, and our Q1 activities have been entirely focused on thorough vendor selection, strategic evaluation phases.

These are standard planned milestones that ensure our projects remain on track and cost-effective as we move forward. We could give more, let's say, detailed estimation on EPC signing or phases, but from my perspective, it actually create a bit of confusion because they are quite flexible.

We might get ahead or be a bit delayed. The main target is the one that actually matters is the actual finishing of the project.

Another question: In Q1 2026, network losses cost decreased 2.7% year-to-year despite the conflict outbreak on 28th of February, supported by lower next-day market prices and 3.5% volume reduction. However, March natural gas prices rose 34% month-on-month, and Q4 typically combines higher demand with lower solar production.

What is our network losses cost outlook for Q2 and the remainder of 2026 if the Middle East situation persists or escalates? Beyond the 148 million RON CPT overrun already budgeted in 2026 RAP, what actually regulatory mechanisms or hedging strategies are in place?

Can you quantify the Q1 cost impact of prosumer imbalances on EFSA, and how is this being mitigated? I will let Janina answer the distribution, we'll be perfectly aligned.

Okay. The prices achieved in Q1 2026 are lower than those estimated in the budget, and the contract coverage in the first two quarters is around 60%.

Even though the coverage level is currently lower in the second half of 2026, we are committed to maintaining the same coverage level as in the first half. We did not estimated any additional risk to the budget overrun.

For the supply? To manage the imbalances generated by prosumers, we conducted 10-month pilot project with companies specializing in production forecasting services.

Following these trials, we identified and signed a contract with the best-performing partner involved in the pilots. The installed capacity and the number of prosumers are updated daily and transmitted to the services provider, ensuring production forecasts are continuously refined.

Thank you.

We'll go forward. Could you walk us through the main drivers behind the sharp decline in the supply segment margin in Q1 2026 versus Q4 2025?

Was this primarily pricing, procurement cost mix, or any one-off effect? Now, the one-off effect.

Now, the result improvement for the supply sector in Q1 2026 versus Q1 2025, I think it should have been or 4, but nevertheless, with the principal driver was it's actually the end of the price cap support scheme in 1st of July 2025 and the subsequent transition to a fully liberalized market. Under the prior subsidy-based regime, EFSA operated with collection delays and tightly regulated margins, but from second half of 2025, the business repriced dynamically based on wholesale curves and customer mix economics.

Now, the application of GEO 6/2025 further allowed recovery of up to 10% of imbalance costs, protecting the operating margin during the transition window. Now, this means all these factors transform the segment into a meaningful EBITDA contributor.

We are still waiting on some things to catch up, mainly the recovery of the supply scheme money that was paid within, roughly 2.5 billion. Now, this has an effect, a direct effect on the business and on its competitiveness, but we are being assured at any time that it will get fixed this year.

On another question: On the 500 MW LIBERTY project, should we think of LIBERTY Galați as the main offtaker, or do you intend to optimize output between LIBERTY, the wholesale market, and your supply portfolio? This is an excellent question.

It gives us the opportunity to clarify. Now, we took into consideration when we went in not only the fact that LIBERTY can be and hopefully will be one of the largest consumers of energy in the country, but also its placement and the actual integration of those lands within the grid.

Nevertheless, with or without LIBERTY operating, we will make the investment to operate as a standalone. If it's with LIBERTY up and running, then it's a more cleaner version of it and it's a more stable, let's say, output of the business.

As we have the production, we have the consumer, we should optimize between them, and that's it. If not, it will be part of our general portfolio.

It will be managed like everything else, it will be in the market. Going forward: On Distribuție Energie Oltenia, could you clarify whether Electrica participated in the process and whether Premier was effectively the competing bidder?

We had understood this was an asset that you were evaluating. We are evaluating at all time all kind of assets on the market.

Now, as a procedure, let's say, Distribuție Energie Oltenia was and is under the property of Macquarie investment fund, who has not declared, let's say, at any time the intention to sell or buy. They are investment fund and they are evaluating at all times this kind of endeavors.

Now, we weren't competing, let's say. There was no bidding one's against another.

I guess there are more than one entities that had made these evaluations. We will remain to see what happened in the end.

What I can assure everybody is that a decision from Electrica to buy strategic assets or assets in general will only be made if it within the strategy of Electrica Group, its economics overall, and in the best interests of its shareholders. On the next question: Q1 results look strong.

Congratulations on the performance, but the budget points to declining figures for 2026. When do you expect this discrepancy to reverse and performance to recover?

Now, there are two things. As we, let's say, did in the previous years before, the budget has in consideration the lowest level of execution that is possible taking in consideration some extraordinary events that might happen.

We saw that, in this case, it was again a point well being made by Electrica to not overdo it. We have a budget that is in place with some economic and strategic decisions that might not go so well.

We have the war in Iran. We have the war in Ukraine.

We have various conflicts. We have various decisions being made.

Our main target is to reach the budget level and then outperform every event that is happening on the market. I think we did this already.

Now, economically, we see indeed a slowing down of the overall consumption in the country. We have higher imbalances in the energy sector.

These are things to overcome, and we will do our best to overcome it and surpass the expectations that we already set. I'm not, let's say, pessimistic in general.

I'm more of an optimist, and I think 2026 will be a good year for Electrica. Electrica will continue its course, and we will find solutions to counteract any, let's say, problems that might occur.

Now going forward. The supply budget energy margin is lower in 2026 compared to 2025 even though you will benefit from the liberalized quarters in electricity versus only in two in 2025.

What is driving this decline, lower or gas? Is competitive pressure a factor here?

I'll leave Costin to answer the question.

We went in this conservative budget, and as you see in the last three years, we try to be very careful. The market is unstable.

This is the reason why we budget a conservative margin and it's a prudent approach based on the negative scenario that we see in front of us. We are sure that we are going to try to keep the existing performance as we already show in the Q1, and we think that we can confirm that period, right, but as a budget, we go in a conservative way.

We don't think the pressure is coming from the gas. Related, I'll go to the other question.

In the management strategy for the €1 billion financing approved in April 2029 by the shareholders? Yes, we plan to go forward with the bonds, and we are in the preparation to collect all the necessary data that we need, and our expected schedule depending on the market conditions is to happen after the half of the year to go to the market.

We are in the preparation, but we are waiting to see the best momentum.

On the next one: Why did Electrica budgets such a small net profit for 2026 since in Q1 2026 you already exceeded the budgeted profit for the entire year? Could you give us more insights regarding this?

Now, as we always mention, we have a very prudent approach regarding the budget. It's the bottom of the expectation that we can make.

We had a previous year where we, I think, budgeted 70 or 100 million for the supply business, and we closed it off at -300 million because there are some possible extraordinary events that can happen. Now, overall, even in that year, we made the budget.

We set the target, we took in consideration such an event. We're not seeing any type of this event this year, but still, there are things that are happening and they are completely out of our control, like is the conflict in Iran.

If that goes even worse, then we expect that the overall economy will be affected and then it will have an impact in our business. It's not the case at this time.

We're already at the end of May, it's not the case for the half of 2026. Hopefully, it will not be the case by the end of the year.

We are optimistic further on. What impact do you expect LIBERTY Galați to have on the company's free cash flow?

Do you believe it could increase the non-payment risk for Electrica?

I will answer on this. LIBERTY Galați is a project.

We are doing an investment there. We don't see any impact on the current free cash flow of 2026 or 2027 because it's an investment.

The non-payment risk, it's not there.

We'll have a minute to have more questions.

Oh,

there is one more. What is your outlook regarding the impact of prosumers on the distribution segment?

Do you believe that there will be a higher growth rate in tariffs for lower and medium transmission going forward? Now, the grid can't take it at the time.

It's not made for this. We need more investments in the grid in order to adapt to the new type of energy sector that is coming.

Now, in order to make the investments, these investments are collected through tariffs. If we do more investments means higher tariffs.

We are in discussions and negotiations with ANRE so we can find the best way. These tariffs are included in the price of energy without affecting the consumers.

These negotiations will go on for the next, let's say, two or three months. It's an ongoing operations, but we're trying to find some specific solutions to this.

I am more optimistic on this also. I think there will be a solution.

The main point is not to raise the tariff as it is. The main point is to increase the energy consumption in the economics of Romania so the industry can grow, entrepreneurs can have their business, we have higher consumption.

It means a better outlook for the company also. We need these investments also to be made, but I'm sure that we have solutions and we can do it with no risk for everybody.

When will you publish an update for the budget if this is the case? I don't think this is the case.

I'll also ask Costin to complete. As a tradition, Electrica will not give any update on the budget.

Our budgets, it's remain in the same value. At the end of the half year, probably in the next investor we'll give some revised estimation.

We have to take in consideration that is still a volatile market, it can have its ups and downs. It will be very premature to ask for a updated budget.

We'll wait another minute, maybe we have more questions.

It seems like there are no more questions. I would like to thank everybody for connecting.

Remember, you can always, always send us an email, have a call. We'll set a meeting.

It can be separate. We're fully transparent.

We want you to know exactly what's happening. We are very enthusiastic for this year.

I think Electrica Group is going very well, and we are actually very excited to expanding the overall projections of the group. We are changing.

The company's changing, and we will see Electrica, as we like to say it now, as a light factory. It will be an energy platform, not just an utility.

Thank you so much. Thank you to my colleagues, and we'll see you next time.