CNTEE Transelectrica : Proposed distribution of net profit from the financial year 2021

To the: Bucharest Stock Exchange - Department Operations Issuers Regulated Markets

Financial Supervisory Authority - General Directorate Supervision - Issuers Division

Date of current report: 24 martie 2022

Name of issuer entity: CNTEE TRANSELECTRICA SA, company managed by two-tier system

Headquarters: Bucharest 1, Blvd. Gheorghe Magheru 33

Working location: Bucharest 3, Str. Olteni 2-4

Phone / fax numbers: 021 30 35 611/021 30 35 610

Single registration code: 13328043

LEI code: 254900OLXCOUQC90M036

Number in the Trade Register: J40/8060/2000

Share capital subscribed and paid: 733.031.420 RON

Regulated market where the issued securities are transacted: Bucharest Stock Exchange

Communiqué - proposed distribution of net profit from the financial year 2021

The National Power Grid Company Transelectrica SA transmits to the investor public, attached to this communiqué the Note proposing the net profit distribution from the financial year 2021. The proposed distribution of net profit from the financial year 2021 will be subjected to debate in the annual reunion of the Shareholders' general ordinary

assembly to approve the 2021 financial results, convened on 28/29 Aprilie 2022, namely:

LANGUAGE DISCLAIMER: This document represents the English version of the original official Romanian document filed with the Financial Supervisory Authority ASF. 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. Any discrepancies or differences created in the translation are not binding. 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 which is the official version.

In accordance with the 2022 Financial Communication Calendar, the AGA material and the documents of interest will be available beginning with the date of this communiqué, namely 28 March 2022, on-line on the websitewww.transelectrica.ro,section Investor Relations, AGA, reunion of 28/29 April 2022, namelyhttps://www.transelectrica.ro/ro/web/tel/aga.

Gabriel ANDRONACHE

Florin Cristian TATARU

Directorate Chairman Executive Director General

Directorate Member

No. 13605/23.03.2022

NOTE regarding approval of the Shareholders' General Assembly for distribution of the net profit on 31 December 2021

In accordance with article 14, para. (1) let. b) from the Articles of Association of NPG Co. Transelectrica S.A. updated by SEGA Decision 12/21.12.2020, we submit to approval by the Shareholders' General Assembly the distribution of net profit on 31 December 2021, taking into consideration the following issues:

In accordance with the provisions of MFP Order 881/2012, NPG Co. Transelectrica S.A. applied, beginning with 2012 financial year, the International Financial Reporting Standards (IFRS) when elaborating the annual individual (stand-alone) statements.

The stand-alone financial statements on 31 December 2021 have been elaborated in accordance with the International Financial Reporting Standards approved by Order 2844/2016 of the Minister of Public Finance, with later amendments and additions.

The net accounting profit registered by NPG Co. Transelectrica S.A. as of December 31, 2021 is 449,891 lei.

Under such circumstances the proposed distribution to legal destinations of the accounting profit left after income tax on 31 December 2021, amounting to 449,891 Lei, is the following:

The proposed distribution of accounting profit remaining after deduction of the income tax on 31 December 2021 was done in accordance with the provisions of applicable legislation, namely:

- OG 64/2001 on profit distribution in national societies, national companies and trading companies with full or majority state capital, and in independent authorities, approved with amendments by Law 769/2001, with later amendments and additions;

- OMFP 144/2005 - approving the Specifications to determine amounts used in profit distribution according to OG 64/2001 on profit distribution in national societies, national companies and trading companies with full or majority state capital, and in independent authorities, approved with amendments by Law 769/2001, with later amendments and additions;

• - OMFP 128/2005 regarding certain accounting regulations applicable to economic agents;

• - Law 227/2015 on the Fiscal Code, with later amendments and additions;

• - Regulation (EC) 714/2009 of the European Parliament and the Council of 13 July 2009 regarding the network access conditions for cross-border electricity exchanges and cancelling Regulation (EC) 1228/2003;

- ANRE Order 171/2019, with later amendments and additions approving the Methodology establishing tariffs for electricity transmission services;

- Referral paper to approve the average tariffs of transmission services, tariff components when introducing electricity into the grid (Tg) and when taking out electricity from the grid (Tl) and the price of reactive electricity for NPG Co. Transelectrica S.A., valid as of 1 January 2021, transmitted by ANRE with letter 1000068/14.12.2020;

- The revenue and expense budget approved by SGA Decision 2/29.04.2021.

The 2021 accounting profit remaining after deduction of income tax is distributed to the following destinations:

a) Legal reserve amounting to 93,894 lei, determined at 5% according to the provisions of article 26 para. (1) let. a) of Law 227/2015 on the Fiscal Code, with later amendments and additions and Company Law 31/1991;

b) Other reserves representing law-provided fiscal facilities amounting to 355,997 lei, represented by tax payment exemption for reinvested profit, in accordance with the provisions of article 22 of Law 227/2015 on the Fiscal Code, with later amendments and additions.

From the net accounting profit achieved on December 31, 2021 in the amount of 449,891, the amount of 355,997 is distributed to "Other reserves", a value that represents the distribution to reserves of the amount of profit that benefited from income tax exemption, except the part related to the legal reserve, up to the competition of the accounting profit registered at the end of the financial year, according to the provisions of art. 22 of Law no. 227/2015 on the Fiscal Code, with later amendments and additions.

DIRECTORATE

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