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1 1
2016 results
Transelectrica SA
Transmission and System Operator
of the Romanian Electrical Power System
We lead the power 2016 results
stand-alone IFRS
24th March 2017
2 2
2016 results
Purpose, disclaimer and other cautionary statements
DOCUMENT PURPOSE: This presentation has been prepared with the sole intention to facilitate the understanding of Transelectrica’s operational and financial results by the general
investing public (shareholders, creditors, analysts, financial media). Therefore it is of a purely informative nature. This presentation is not an offer, invitation or
a recommendation to trade in securities issued by the Company. The detailed financial statements and the full report prepared in accordance with capital
market regulations are available online at www.transelectrica.ro.
FINANCIAL NUMBERS: reporting period: 1st January 2016 – 31th December 2016
reporting standard: International Financial Reporting Standards (IFRS)
basis/scope: standalone (unconsolidated)
external audit: audited
rounded numbers: for the ease of reading, certain figures used in this presentation (tables and charts) are displayed in millions and rounded to such
unit or to one or two decimals. In some cases this led to minor differences between totals and the sum of the individual elements
thereof (rounding errors)
REGULATED TARIFFS, 3rd REGULATORY PERIOD (1 July 2014 – 30 June 2019): The presented figures (calculation components of regulated tariffs) are presented as disclosed to us by the Romanian Energy Regulator (the public office that sets
the network tariffs charged by Transelectrica for the services performed on the domestic electric energy market, in accordance with the license granted by the
regulator). Tariff ex-ante parameters for the current regulatory period were subject to an interim review by the Romanian Energy Regulator at 1st July 2015
LANGUAGE DISCLAIMER: This document represents the English-language version of the original Romanian-language document. The English version has been created for English readers’
convenience. Reasonable efforts have been made to provide an accurate translation, however, discrepancies may occur. The Romanian version of this document
is the original official document. If any questions arise related to the accuracy of the information contained in the English version, please refer to the Romanian
version of the document.
3 3
2016 results Agenda
Agenda: 2016 results
• Highlights
• Operational results
• Financial results
Investment
• Investment deliveries in 2016
• Investments - current status
Q&A
4 4
2016 results
• Power Consumption* 55.6 / 55.0 TWh ▲ 1.2% 27.6 TWh ▲ 0.7% 27.9 TWh ▲ 1.7%
• Power Production* 60.7 / 61.7 TWh ▼ 1.7% 29.2 TWh ▼ 4.3% 31.5 TWh ▲ 0.8%
• Net Export 5.05 / 6.72 TWh ▼ 25.4% 1.60 TWh ▼ 48.9% 3.45 TWh ▼ 5.8%
Operațional
• Profit-allowed segment: lower tariffs applied in 2016 as compared to 2015, as per the annual tariff reviews at 1-Jul-2015 (Transmission ▼6.8%,
Dispatching ▼17.6%) impacting 1H2016 vs. 1H2015, and 1-Jul-2016 (Transmission ▼10.8 %, Dispatching ▲11.1%) impacting 2H2016 vs. 2H2015;
• Pass-through segment: the loss incurred in 1Q2016 due to legally-imposed additional purchases of stand-by back-up generation for grid balancing
purposes was fully offset in 2Q2016 due to low purchase prices in the market and turned to significant profit in 3Q2016 and 4Q2016 as prices in the
back-up capacity market continued to decline
Regulatory framework
Highlights
*consumption/generation numbers do not include power plants’ own electricity consumption. Consumption includes (i) consumption for hydro pumped storage, and (ii)
energy losses in transmission and distribution networks. Cross-border net flow is calculated based on physical flows (export-import) aggregated across borders
FY y/y 1H y/y 2H y/y
• Revenue 2,723 / 2,985 mil Lei ▼ 8.8% 1,350 mil Lei ▼ 5.4% 1,373 mil Lei ▼11.9%
• EBITDA 675 / 767 mil Lei ▼ 12.0% 343 mil Lei ▼ 16.5% 332 mil Lei ▼ 6.9%
• Net profit 272 / 360 mil Lei ▼ 24.4% 142 mil Lei ▼ 32.6% 131 mil Lei ▼12.4%
• Dividend per share (75%) 1.8810 / 2.6500 Lei▼ 29.0% - as per the dividend policy approved by GMS in 2016
• Dividend per share (90%) 2.2570 / 2.6500 Lei▼ 14.8% - as per the governmental memorandum
1H y/y 2H y/y FY y/y Financials
5 5
2016 results
-1.0
-0.5
0.0
0.5
1.0
Jun Feb Mar Apr May Jun Iul Aug Sep Oct Nov DecT
Wh
2015 2016
4.0
5.0
6.0
7.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TW
h
2015 2016
3.0
3.5
4.0
4.5
5.0
5.5
Jan Feb Mar Apr May Jun Iul Aug Sep Oct Nov Dec
TW
h
2015 2016
+4.7% 4Q
2016/2015 +3,8% -0,8% +0,1% -3,5% +0,9% +1,9% -1,7% -2,9% +0,4% +1,4% +5,5% +7,1%
Domestic demand for electricity increased slightly (picked up in 4Q) Falling export volumes led to a decline in domestic power production
Consumption and generation numbers do not include power plants’ own electricity consumption. Consumption includes (i) energy losses in transmission and distribution networks, and (ii)
consumption for hydro pumped storage. Cross-border net flow is calculated based on physical flows (import-export).
2016/2015 +2,9% -5,1% -10,2% -14,5% -6,5% +9,1% +3,6% -2,5% -5,7% -2,8% +1,5% +9,9%
CONSUMPTION PRODUCTION
NET EXPORT
+1.2% FY
FY
EX
PO
RT
(−)
| (
+)
IMP
OR
T
+1.6% 1Q
2016/2015 -4% -60% -97% -76% -116% +136% +53% +0% -51% -33% -24% +34%
Highlights | operational trends
-0.3% 2Q -1.4% 3Q
-1.7%
-4.6% 2Q -1.4% 3Q -4.0% 1Q +2.9% 4Q
FY -25%
-47% 2Q -1% 3Q -50% 1Q -10% 4Q
6 6
2016 results
2016 / 2015
55.6TWh / 55.0TWh ▲ 1.2% CONSUMPTION OF ELECTRICITY (grid losses included)
6,335MW / 6,276MW ▲ 0.9%
HOURLY AVERAGE
60.7TWh / 61.7TWh ▼ 1.7%
TOTAL NET OUTPUT
6,906MW / 7,043MW ▼ 2.0%
HOURLY AVERAGE
5.0TWh 6.7TWh
NET EXPORT
7.3TWh / 2.3TWh 8.1TWh / 1.4TWh
EXPORT / IMPORT
71% RS, 66% HU 96% RS, 98% HU
ACTUAL USAGE OF ALLOCATED EXPORT CAPACITY
▼25.4%
Highlights | operational trends
OPERATIONAL VOLUMES
Consumption
Production
Export physical flows
Cross-border
capacity usage
7 7
2016 results
21.6%
Renewables
31.6%
Hydro
22.7%
Coal
6.4%
Nuclear
17.7%
Gas
2,9
24,8
60.7
55.6 7.3
2.3 43.67
42.66 1.01
TWh TWh
2016 / 2015
14.5% / 15.4%
Renewables
29.8% / 26.8%
Hydro
23.4% / 26.3%
Coal
17.1% / 17.3%
Nuclear
15.3% / 14.2%
Gas
20,260 MW
60.7 TWh
OPERATIONAL VOLUMES 2016 / 2015
*Renewable energy sources (RES) : Wind, Photovoltaic, Biomass, Geothermal.
(Micro hydro power plants not included)
Production mix Production fleet
Network losses Electricity balance
Highlights | operational trends
Import
Generation output from domestic plants
Export
Domestic consumption
Power injected into the transmission grid
Losses
Power extracted from the transmission grid
60.7 TWh / 61.7 TWh
NET PRODUCTION
55.6 TWh / 55.0 TWh
NET CONSUMPTION
5.0 TWh / 6.7 TWh NET EXPORT
NET CROSS-BORDER FLOW
6,335|8,752 MW / 6,276|8,488 MW
HOURLY CONSUMPTION (AVERAGE / HIGH)
20,260 MW / 20,970 MW
NET PRODUCTION CAPACITY CONNECTED TO RPS
4,368 MW / 4,240 MW
NET RES PRODUCTION CAPACITY CONNECTED TO RPS
43.67 TWh / 43.76 TWh
TRANSMISSION GRID INPUT VOLUME
2.32 % / 2.35%
TRANSMISSION NETWORK LOSSES
RPS: Romanian Power System
▼1.7%
▲1.2%
▼25.4%
▼0.1%
▼0.03 pp
8 8
2016 results
▲Personnel expenses
- provisions for future personnel
payments
- company-financed pension
plan
- holiday vouchers
- social expenses
▼Lower tariffs
(1 Jul 2015, 1 Jul 2016)
▼Cross-border congestion
income
2016 / 2015 profit-allowed operations
PROFIT
FROM OPERATIONS
Allowed profit operations Overall operations
2016 / 2015
53,5 / 52.5 TWh VOLUME BILLED FOR GRID OFF-TAKES (TL)
57.0/ 57.8 TWh VOLUME BILLED FOR GRID IN-TAKES (TG)
Lei 2,723 m / Lei 2,985 m REVENUES FROM OPERATIONS
Lei 1,260 m / Lei 1400 m REVENUES FROM PROFIT-ALLOWED SEGMENT
Lei 675 m / Lei 767 m EBITDA
Lei 352 m / Lei 449 m EBIT
Lei 272 m / Lei 360 m NET INCOME
▲2.0%
▼1.4%
▼8.8%
▼10.0%
▼12.0%
▼21.6%
▼24.4%
Lower tariffs
Transmission fee income Lei -118 m
Dispatching fee income Lei -2 m
Cross-border congestion rents Lei -22 m
Revenues
Lei -140 m
Personnel expenses Lei +26 mil
Other expenses Lei -9 mil
Expenses*
Lei +16 m
Lei 587m
(▼21% from Lei 743 m in 2015)
EBITDA
Lei -156 m
Highlights | key financials
*before depreciation and amortization
9 9
2016 results
[Lei millions] 2016 2015 ∆% Q4 2016 Q4 2015 ∆%
Billed volume [TWh] 53.52 52.47 +2.0% 14.36 13.57 +5.8%
Profit-allowed operations
Revenues 1,260 1,400 -10.0% 326 336 -2.8%
Costs 672 657 +2.4% 211 204 +3.1%
EBITDA 587 743 -20.9% 116 132 -12.1%
EBITDA margin 47% 53% 35% 39%
Depreciation 323 318 +1.5% 79 79 +0.3%
EBIT 264 424 -37.8% 36 52 -31.0%
Pass-through operations
Revenues 1,463 1,585 -7.7% 498 433 +15.0%
EBIT 88 24 +260.5% 54 38 +43.1%
All operations
Revenues 2,723 2,985 -8.8% 825 769 +7.2%
Costs 2,048 2,217 -7.7% 655 600 +9.2%
EBITDA 675 767 -12.0% 170 170 +0.2%
EBIT 352 449 -21.6% 90 90 +0.1%
Net Income 272 360 -24.4% 60 55 +7.4%
Slight overall annual increase in
volumes with a more aggressive
growth in 4Q amid very low
outside temperatures
Lower tariffs at 1st of July 2016
+ stable cost base
Significant gain from the back-up
reserve service (low stand-by fees
paid to generation plants)
Profit & Loss
Financial results
10 10
2016 results
13.612.612.3
52.5
14.0 14.412.712.514.0
53.5
4Q 3Q 2Q 1Q FY
+1.6% +5.8% 0.0% +0.5%
+2.0%
TWh
21.021.023.623.922.4
18.718.620.720.919.7
1Q 3Q FY
-12.6% -11.1% -11.9%
2Q
-11.3% -12.1%
4Q
Lei/MWh
1.171.171.421.421.30 1.301.301.171.171.24
-17.6%
3Q
-4.6%
1Q FY 2Q
+11.1%
4Q
+11.1% -17.6%
Lei/MWh
2015 2016
12.5812.5812.5412.5412.56 11.5811.5812.5812.5812.07
FY
-7.9% -3.9% +0.3% -7.9% +0.3%
4Q 1Q 3Q 2Q
Lei/MWh
2016 2015
*average rage achieved (total revenue from TL and TG / charged volume TL)
Volumes and average grid fees
Billed off-take volumes Transmission tariff
Dispatching tariff System services tariff
(balancing back-up reserves)
Financial results
11 11
2016 results
TWh TWh
1,81,5
3,63,9
3,1
5,1
0,00,0
2015 2016
UA RS HU BG
0,30,40,9
0,3
2,33,0
0,00,1
2016 2015
HU RS BG UA
18,214,2
25,1
35,0 37,5
52,1
1,41,1
2016 2015
HU RS UA BG
Cross-border capacity
rent income
Lower exports on the Hungarian
and Serbian borders. Higher
exports on the Bulgarian border
Lower y/y imports at the
Hungarian border. Higher y/y
imports at the Serbian border
Lower cross-border capacity
rent income (new refund rule on
HU and BG borders)
Import volumes
(contract volumes) Export volumes
(contract volumes)
Export vs. import. Income from the sale of cross-border network capacity
Operational results
Voumes (TWh) represent cross-border traded volumes aggregated across all trading timeframes (forward and spot). Cross-border income reflects the total amount of income
earned by Transelectrica in the explicit allocation (annual, monthly, day-ahead and intra-day auctions) and implicit allocation (day-ahead in the case of RO-HU border) of
cross-border network capacity, aggregated for exports and imports.
Lei m
12 12
2016 results
814
649
1,260
2,723
Total Profit-
allowed
operations
Balancing
services
Balancing
stand-by
reserves
558266
1,260
1,057
Cross-
border
rents
Transmission
tariff
Other
income
Total Dispatch
tarif
923
662
2,985
1,400
Balancing
stand-by
reserves
Profit-
allowed
operations
Total Balancing
services
5510268
1,400
1,174
Transmission
tariff
Total Other
income
Cross-
border
rents
Dispatch
tarif
1,400
1,260
0
-140
Revenues
2016
Other Cross-
border rents
-2
Transmission
fee
-118
Revenues
2015
-20
Dispatching
fee
2015
2016
2016
2015
DRIVERS BEHIND THE DECLINE IN REVENUES
▼ Revenues came under downward pressure due to tariff cuts as of mid-
year 2015 and mid-year 2016 (tariffs were curtailed to offset the excess
income earned in previous tariff years primarily due to higher-than-expected
volumes but also due to higher ex-ante cost assumptions and higher ex-ante
inflation assumption built into the transmission tariff )
▼Revenues generated from cross-border capacity rents declined due to (i)
lower cross-border traded volumes and (ii) new “refund” rule under which
traders are now reimbursed in cases where they make capacity reservation
payments to Transelectrica but don’t actually use the capacity which is then
re-sold to the market by Transelectrica
OPERATING REVENUES
ALL OPERATIONS PROFIT-ALLOWED OPERATIONS PROFIT-ALLOWED OPERATIONS: BREAKDOWN
OPERATING REVENUES
Financial results
Operations | Revenues
Chart unit: Lei m
13 13
2016 results
814
561
996
2,371
Balancing
reserves
Total Profit-
allowed
operations
Balancing
services
923
638
975
2,536
Balancing
services
Profit-
allowed
operations
Total Balancing
reserves
975195
318
186
89187
Grid
losses
Other
costs
Total Depreciation Maintenance Personnel
996189
323
212
88183
Other
costs
Total Grid
losses
Maintenance Personnel Depreciation
996
0
975
Grid
losses
Operating
costs
9M2015
Operating
costs
9M2016
Other
costs
+21
-6
Depreciation
+5
Personnel
+26
Maintenance
-4
2015
2016
2016
2015
DRIVERS BEHIND THE SLIGHT INCREASE IN COSTS
▲Personeel expenses (provisions for future payments to
employees, holiday vouchers, company-financed retirement plan,
social expenses)
Financial results
Operations | Costs
OPERATING EXPENSES
ALL OPERATIONS PROFIT-ALLOWED OPERATIONS PROFIT-ALLOWED OPERATIONS: BREAKDOWN
OPERATING EXPENSES
Chart unit: Lei m
14 14
2016 results
56% 34%
10%
62%
27%
11%
2016
2015
1.5
2.0
2.5
3.0
3.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
%
Range 2011-2016
2015
2016
2016 / 2015
-0.03PP 2.32%
2.35%
150
175
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Lei /
MW
h
2015
2016
2016 / 2015
-1.1% FM
162.6 Lei
160.7 Lei
100
125
150
175
200
225
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Lei /
MW
h
2015
2016
2016 / 2015
-1.8% DAM
169.6 Lei
166.5 Lei
2016 2.22 2.49 2.63 2.32 2.59 2.53 1.94 2.19 2.13 2.34 2.43 2.15
2015 2.50 2.31 2.60 3.03 2.58 2.52 2.02 2.01 2.23 2.28 2.41 1.91
43.67 TWh GRID IN-TAKE VOLUME IN 2016
42.66 TWh GRID OFF-TAKE VOLUME IN 2016
2.32% (1.0 TWh) GRID LOSSES IN 2016
GRID LOSSES
160.7 Lei/MWh (▼ 1.1%)
FORWARD MARKET (FM)
166.5 Lei/MWh (▼ 1.8%)
DAY-AHEAD MARKET (DAM)
334.1 Lei/MWh (▲ 0.6%)
BALANCING MARKET (BM)
PRICES PER MARKET
180.3 Lei/MWh (181.4 Lei/MWh in 2015)
CROSS-MARKET AVERAGE PRICE PAID
62%FM / 27%SPOT / 11%BM (2016) PURCHASE MIX (VOLUMES)
56%FM / 34%SPOT / 10%BM (2015) PURCHASE MIX (VOLUMES)
AVE PRICE / PURCHASE MIX
Financial results
Operational costs | grid losses
Forward
Market
FM
Spot Market Day-ahead Market
+ Intraday
Balancing
Market
BM
15 15
2016 results
EBITDA
2016
EBITDA
2015
2016
2015 -156 743 587
767743
Pass-
through
+24
-657
Revenues EBITDA Costs
1.400
EBITDA
reported
675587
Costs EBITDA
reported
EBITDA Pass-
through
+88
Revenues
-672
1.260 1.2601.400
Other
0
-140
Revenues
2015
Cross-
border rents
-20
Revenues
2016
Dispatching
fee
-2
Transmission
fee
-118
2015
2016
672657
Personnel Maintenance Operating
costs 2016
Operating
costs 2015
Other
0 -6 -4
+26
Grid
losses
+16
2016
20
15
Operational profit | EBITDA
Financial results
FROM REVENUES TO EBITDA EBITDA BREAKDOWN (PROFIT-ALLOWED)
Chart unit: Lei m
Profit-allowed
Profit-allowed
REVENUES
EXPENSES before depreciation
16 16
2016 results
2016
2015
FROM EBITDA TO NET INCOME NET INCOME BREAKDOWN
DRIVERS BEHIND THE DECLINE IN NET INCOME
▼ Steep decline in EBITDA from profit-allowed operations due to
lower tariffs as per the regulatory reviews at 1-July-2015, 1-July-
2016
▲Significantly more profit coming from pass-through segment
(stand-by back-up grid balancing service)
Rezultate financiare
From EBITDA to Net income
272
335352
264
587
Net
Income
Income
tax
-62
EBT Financial
result
-17
EBIT
reported
Profit from
Pass-
through
operations
+88
EBIT
Profit-
allowed
operations
Depreciation
-323
EBITDA
Profit-
allowed
operations
360430449424
743
+24
Net
Income
Income
tax
-70
EBT Financial
result
-19
EBIT
reported
Profit from
Pass-
through
operations
EBIT
Profit-
allowed
operations
Depreciation
-318
EBITDA
Profit-
allowed
operations
272
360
-88
Net
Income
2016
Income tax
+8
Financial
result
+2
EBIT
Profit-
allowed
operations
+63
Depreciation
-5
EBITDA
Profit-
allowed
operations
-156
Net
Income
2015
20
15
20
16
Chart unit: Lei m
17 17
2016 results
*for the purpose of calculating Net financial debt, the cash balances from
new connection fees (Lei 23 m), cogeneration clearing activities (Lei 140
m) and cross-border rent income booked under investment reserve (Lei 75
m) were not included in cash and cash equivalents.
31 Dec 2016
D/E
< 0.95x
Covenant
Net Debt / EBITDA
< 3.5x
Lei m
Covenant Covenant
Lei 640 m Gross financial debt
(current portion included)
Lei -86m Net financial debt (net of cash*)
Lei 675 m EBITDA (most recent 4 quarters)
0.21x (capped at 0.95x by covenants)
Gross debt / Equity
(current portion included)
28.13x (floored at 4.2x by covenants)
EBITDA / interest expense
Lei 2,952 m / Lei 2,362 m Maximum debt levels given covenant constraints
D/E (left-hand side) and Net Debt/EBITDA (right-hand side)
Significant debt capacity
EBITDA
Debt breakdown (currency, interest rate, instrument)
Financial results | Debt position
Cash unrestricted
Equity
MAX
Gross
Debt
Gross
Financial
Debt Net
Financial
Debt
MAX
Net
Financial
Debt
Ba1 stable | Moody’s rating
EUR USD
RON
67%
31%
2%
FIX
VAR
75%
25%
Banks
Obligatiuni
69%
31%
2,362
3,50x
0,95x
675 -86
726
3,108
640
2,952
18 18
2016 results
New contracts signed in 2016 Total aggregate amount for 2016 contracts
Capital expenditure Amounts added to construction-work-in-progress in 2016
New commissioned assets Amounts transferred from construction-work-in-progress to fixed assets in 2016
Lei 182 m
Lei 180 m
Lei 93 m
Selected items:
Lei 63.5 m - Modernization of Substation 400/220/110/20 kV Bradu
Lei 19.7 m - Cross-border 400 kV line between Resisa (Romania) and Pancevo (Serbia)
Lei 9.1 m - Connecting Line Isaccea-Varna and Line Isaccea-Dobrudja in Substation 400kV Medgidia Sud
Lei 8.0 m - Modernization of Substation 220/110/20 kV Campia Turzii
Selected items:
Lei 18.6 m - Modernization of Substation 400/220/110 kV Bucuresti Sud
Lei 13.0 m - Stage I for upgrading Portile de Fier-Arad route to 400 kV voltage (plant extention)
Lei 9.8 m - AT and Trafo replacement in power Substations (Ungheni, Gradistea, Gheorgheni)
Lei 6.5 m - Modernization of control-protection in Substation 220/110 kV Vetis
Lei 6.5 m - Modernization for galloping effects on many Lines
Selected items:
Lei 30.9 m - Modernization of Substation 400kV Isaccea
Lei 24.2 m - Modernization of Substation 220/110/20 kv Arefu
Lei 20.5 m - Modernization of Substation 220/110 kV Dumbrava
Lei 16,9 m - Modernization of Substation 220/110 kV Râureni
Lei 11.0 m - Replacement of EMS SCADA components - software component
Investment | 9M2016 numbers
19 19
2016 results
Procurement
Investiții | proiecte în derulare
Under construction Contracts
At this time, procurements
totaling an estimated Lei 54.4
mil are initiated and in
progress
At this time, procurements
totaling an estimated Lei 250
m are being initiated.
Line projects currently
pending Government
approval / environmental
permits / construction
authorizations / land
expropriation
• Substation Otelarie
Hunedoara 220 kV
(estimated value Lei 13.4
m)
• Substation Grădiște SCP
modernization (estimated
value Lei 7.9 m)
Pre-procurement Permitting Project
Estimated
year of
commissio
ning
Initial cost
estimation
[Lei m]
Actual cost
as per
contract
signed
[Lei m]
New cross-border link Reșița
(RO) – Pancevo (RS) 2017 136 81
Line Porțile de fier - Anina -
Reșița* 2018 124 123
Substation Bradu 400/220/110
kV 2018 177 129
Substation Câmpia Turzii
220/110 kV 2017 86 42
Extension of substation 400 kV
Medgidia Sud 2017 75 45
Substation Reșița 400/220/110
kV 2018 130 81
Substation Cluj Est 400/110 kV 2017 24 15
Substation Tihău 220/110 kV 2017 11 7
Modernization of substation
Sârdănești 2018 21 11
Replacement of transforming
units in various substations –
phase II
2018-2019 46 40
Modernization of substation
110 and 20 kV Suceava 2017 31 25
Modernization of substation
220/110kV Dumbrava 2019 30 20
Substation Arefu 220/110/20kV 2019 38 24
Substation Raureni 220/110kV 2018 28 17
Substation Turnu Severin
220/110kV 2019 63 43
Substation Domnesti
400/110/20kV 2019 144 112
• Substation Smardan
400/110/20 kV (estimated
value Lei116.8 m)
• 110 kV Substations Bacau
Sud si Roman Nord
(estimated value Lei 46.9
m)
• Substation Ungheni
220/110/20 kV (estimated
value Lei 46.5 m)
• Substation Focsani Vest –
110 400 plans (220) kV
(estimated value Lei 32.3 m)
Signed contracts
Investment contracts worth a
total of Lei 295.6 m (Lei 182.2
m in 2016, Lei 113.4 m in
2017) were signed In 2016
and 2017 (to date)
Example of contracts signed in
4Q 2016:
• Substation Arefu
220/110/20 kV (Lei 24.2 m)
• Substation Raureni
220/110 kV (Lei 16.9 mi)
• Substation Turnu Severin
220/110 kV (Lei 42.7 m)
Example of contracts signed in
1Q 2017:
• Substation Domnesti
400/110/20 kV (Lei 112.1
m)
*In 1Q2016 a Lei 29.6 m advance payment was returned by the constructor.
Payments will resume once a Governance Decision approving the technical and
economical indicators for the project and land expropriation procedures is
published
1000 km
new lines
• Line Porțile de Fier-Anina-Resita-
Timisoara-Sacalaz-Arad
• Phase I: Porțile de Fier-
Anina-Resita 118 km
• Phase II: Resita-Timisoara-
Sacalaz-Arad 173 km
• Line Gadalin-Suceava 260 km
• Line Smardan-Gutinas 140 km
• Line Cernavodă-Stalpu 160 km
• Line Ostrovu Mare-RET 32 km
• Line Suceava-Balti (MD) 90 km
(subject to RO-MD MoU)
• Connections of lines Isaccea-
Varna and Isaccea - Dobrudja in
substation Medgidia Sud 27 km
20 20
21
22 22
2016 results Annex Separate statement of profit and loss
[Lei m] 2016 2015 4Q 2016 4Q 2015 3Q 2016 3Q 2015 2Q 2016 2Q 2015 1Q 2016 1Q 2015
IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS
audited audited unaudited unaudited unaudited unaudited unaudited unaudited unaudited unaudited
Billed volume [TWh] 53.52 52.47 ▲ 2.0% 14.36 13.57 ▲ 6% 12.69 12.63 ▲ 0% 12.45 12.25 ▲ 2% 14.02 14.02 ▲ 0%
Profit-allowed operations
Operational revenues 1,260 1,400 ▼ 10.0% 326 336 ▼ 3% 285 321 ▼ 11% 301 352 ▼ 15% 348 390 ▼ 11%
Operational revenues | Transmission 1,146 1,285 ▼ 10.8% 294 313 ▼ 6% 257 292 ▼ 12% 278 319 ▼ 13% 317 361 ▼ 12%
Operational revenues | Transmission | Regulated fee 1,057 1,174 ▼ 10.0% 269 285 ▼ 6% 236 265 ▼ 11% 258 289 ▼ 11% 294 336 ▼ 13%
Operational revenues | Transmission | Cross-border rents 82 102 ▼ 19.5% 23 26 ▼ 12% 20 26 ▼ 23% 18 28 ▼ 36% 22 23 ▼ 4%
Operational revenues | Transmission | Other 8 8 ▼ 9.0% 2 2 ▼ 8% 1 2 ▼ 8% 2 2 ▼ 0% 2 2 ▼ 18%
Operational revenues | Dispatching 68 69 ▼ 2.4% 19 16 ▲ 20% 17 15 ▲ 10% 15 18 ▼ 17% 17 20 ▼ 16%
Operational revenues | Dispatching | Regulated fee 66 68 ▼ 2.7% 19 16 ▲ 18% 16 15 ▲ 11% 15 17 ▼ 16% 16 20 ▼ 18%
Operational revenues | Dispatching | Unplanned cross-border flows 1 1 ▲ 12.6% 0 0 ▲ 0 0 ▼ 40% 0 1 ▼ 43% 1 0 ▲ 74%
Operational revenues | Other income 46 46 ▲ 0.6% 13 7 ▲ 97% 11 14 ▼ 20% 8 16 ▼ 50% 14 9 ▲ 44%
Operational costs 672 657 ▲ 2.4% 211 204 ▲ 3% 155 152 ▲ 1% 169 157 ▲ 8% 138 143 ▼ 4%
Operational costs | System operation 231 232 ▼ 0.5% 58 56 ▲ 4% 52 54 ▼ 4% 58 56 ▲ 2% 63 65 ▼ 4%
Operational costs | System operation | Grid losses 183 187 ▼ 2.1% 54 49 ▲ 10% 40 44 ▼ 8% 41 44 ▼ 7% 49 51 ▼ 4%
Operational costs | System operation | Congestion relief 3 1 ▲ 189.3% 0 0 ▼ 75% 0 0 ▼ 100% 0 0 ▼ 4% 3 1 ▲ 375%
Operational costs | System operation | Power consumption in grid substations 15 14 ▲ 9.3% 5 4 ▲ 30% 3 3 ▼ 4% 7 3 ▲ 117% 0 4 ▼ 95%
Operational costs | System operation | Inter-TSO-Compensation 17 18 ▼ 4.7% -3 0 ▼ 17869% 7 5 ▲ 32% 7 6 ▲ 16% 7 7 ▼ 1%
Operational costs | System operation | Other 13 12 ▲ 3.6% 3 3 ▼ 13% 3 3 ▼ 2% 3 3 ▼ 15% 5 3 ▲ 43%
Operational costs | Maintenance 88 89 ▼ 0.1% 26 26 ▼ 2% 27 24 ▲ 15% 21 25 ▼ 14% 15 14 ▲ 2%
Operational costs | Personell 212 186 ▲ 13.7% 80 60 ▲ 32% 47 42 ▲ 13% 43 44 ▼ 1% 41 40 ▲ 3%
Operational costs | Other 141 150 ▼ 5.8% 47 62 ▼ 24% 28 33 ▼ 15% 47 32 ▲ 46% 19 23 ▼ 18%
EBITDA 587 743 ▼ 20.9% 116 132 ▼ 12% 130 169 ▼ 23% 131 195 ▼ 33% 210 248 ▼ 15%
Operational costs | Depreciation and amortization 323 318 ▲ 1.5% 79 79 ▲ 0% 81 79 ▲ 3% 81 80 ▲ 1% 82 80 ▲ 2%
EBIT 264 424 ▼ 37.8% 36 52 ▼ 31% 49 89 ▼ 45% 50 115 ▼ 57% 129 167 ▼ 23%
Pass-through operations
Operational revenues 1,463 1,585 ▼ 7.7% 498 433 ▲ 15% 264 468 ▼ 44% 294 295 ▼ 0% 407 389 ▲ 5%
Operational revenues | System service 649 662 ▼ 2.0% 168 171 ▼ 2% 146 159 ▼ 8% 157 155 ▲ 2% 177 177 ▲ 0%
Operational revenues | Balancing service 814 923 ▼ 11.8% 330 262 ▲ 26% 117 309 ▼ 62% 137 140 ▼ 2% 230 212 ▲ 8%
Operational costs 1,375 1,561 ▼ 11.9% 444 395 ▲ 12% 232 450 ▼ 49% 280 308 ▼ 9% 420 407 ▲ 3%
Operational costs | System service 561 638 ▼ 12.0% 114 133 ▼ 15% 114 141 ▼ 19% 143 168 ▼ 15% 190 195 ▼ 3%
Operational costs | Balancing service 814 923 ▼ 11.8% 330 262 ▲ 26% 117 309 ▼ 62% 137 140 ▼ 2% 230 212 ▲ 8%
EBIT 88 24 ▲ 260.5% 54 38 ▲ 43% 32 19 ▲ 72% 14 -14 ▲ 202% -12 -19 ▲ 34%
All operations (profit-allowed and pass-through)
Operational revenues 2,723 2,985 ▼ 8.8% 825 769 ▲ 7.2% 548 789 ▼ 31% 594 647 ▼ 8% 755 779 ▼ 3%
Operational costs 2,048 2,217 ▼ 7.7% 655 600 ▲ 9% 386 602 ▼ 36% 449 466 ▼ 3% 557 550 ▲ 1%
EBITDA 675 767 ▼ 12.0% 170 170 ▲ 0.2% 162 187 ▼ 13% 145 181 ▼ 20% 198 229 ▼ 14%
Operational costs | Depreciation and amortization 323 318 ▲ 1.5% 79 79 ▲ 0% 81 79 ▲ 3% 81 80 ▲ 1% 82 80 ▲ 2%
EBIT 352 449 ▼ 21.6% 90 90 ▲ 0% 81 108 ▼ 25% 64 101 ▼ 37% 116 149 ▼ 22%
Financial result -17 -19 ▲ 9.6% -13 -20 ▲ 34% 2 2 ▼ 18% -8 -3 ▼ 166% 2 1 ▲ 81%
EBT 335 430 ▼ 22.2% 77 71 ▲ 9% 83 111 ▼ 25% 56 99 ▼ 43% 118 150 ▼ 21%
Income tax -62 -70 ▲ 10.8% -18 -15 ▼ 16% -12 -16 ▲ 29% -14 -15 ▲ 7% -19 -24 ▲ 18%
Net Income 272 360 ▼ 24.4% 60 55 ▲ 7.4% 72 94 ▼ 24% 43 84 ▼ 49% 99 126 ▼ 22%
23 23
2016 results
[Lei millions] 31 Dec 2016 31 Dec 2015
IFRS IFRS
audited audited
Assets
Property, plant and equipment 3,190 3,341
Intangible assets 14 35
Financial assets 78 56
Total non-current assets 3,292 3,432
Inventories 30 34
Trade and other receivables 852 723
Cash and cash equivalents 934 974
Total current assets 1,951 1,802
Total assets 5,243 5,234
Share capital 733 733
Subscribed share capital 733 733
Adjustments of share capital to inflation 0 0
Share premium 50 50
Legal reserve 116 99
Revaluation reserve 549 604
Other reserves 57 56
Retained earnings 1,602 1,488
Total shareholders' equity 3,108 3,029
Long-term deferred revenue 430 463
Borrow ings | non-current 502 635
Other 73 69
Total non-current liabilities 1,005 1,167
Trade and other liabilities 874 776
Other tax and social security liabilities 9 7
Borrow ings | current 138 167
Provisions 54 38
Short-term deferred revenue 38 33
Income tax payable 17 16
Total current liabilities 1,130 1,038
Total liabilities 2,135 2,205
Total shareholders' equity and liabilities 5,243 5,234
Annex Separate statements of financial position and cash flows
Separate statement of financial position Separate statement of cash flows
[Lei millions] 2016 2015
IFRS IFRS
audited audited
Cash flows from operational activities
Cash flows before changes in working capital 725 808
Changes in:
Trade and other receivables -159 327
Inventories 4 1
Trade and other liabilities 61 -186
Other tax and social security liabilities 2 -1
Deffered revenues -27 -58
Cash flows from operational activities 606 892
Interest paid -25 -31
Income tax paid -66 -56
Net cash flow from operational activities 515 805
Cash flow used in investments
Procurement of property, plant and equipment -172 -214
Incasari avansuri neutilizate 30 -30
Interest received 5 12
Dividends received 3 7
Other f inancial assets -65 79
Net cash used in investments -199 -146
Cash flow used in financing activities
Repayments of long-term borrow ings -162 -196
Dividends paid -194 -205
Net cash used in financing activities -357 -402
Net increase/(decrease) of cash and cash equivalents -41 258
Cash and cash equivalents at 1 January 974 716
Cash and cash equivalents at 31 December 934 974
24 24
2016 results CONTACT Annex
TRANSELECTRICA S.A.
Web: www.transelectrica.ro
Stock: ISIN ROTSELACNOR9, Bloomberg TEL RO, Reuters ROTEL.BX
Bonds: ISIN ROTSELDBC013
Post: 2-4 Olteni, Bucharest 3, Romania
E-mail: [email protected]
Tel: +40 213035611
Fax: +40 213035610
Chief Executive Officer (Chairman of the Executive Board): Toni Teau
25 25
