Shareholding structure

Share premiums

In November 2013, the Company issued 28,100,395 ordinary shares on the Bucharest Stock

Exchange through an initial public offering and the exercise of preemptive right by the

shareholder Fondul Proprietatea S.A. The amount collected – amounting to RON 312,478,099 -

was made up of the share capital increase of RON 281,003,950 and an issue/share premium of

RON 31,474,149.

Elements of general assesment

Over the 9-month period ended on September 30, 2020, SNN recorded

a net profit of RON 477,689 thousand.

Indicator

[thousand RON]

9-month

period ended

on

September

30, 2020

(unaudited)

9-month

period ended

on

September

30, 2019

(unaudited)

Variatio

n

Production (GWh)* 7,684 7,524 2,1%

Operating income, out of

which:1,777,182 1,810,218 (1.8%)

Income from electricity

sales**1,731,673 1,771,356 (2.2%)

Operating expenses, minus

impairment and depreciation(830,690) (873,954) (5.0%)

EBITDA 946,492 936,264 1,1%

Impairment and depreciation (408,763) (415,582) (1.6%)

EBIT 537,729 520,682 3,3%

Net financial result 34,904 (4,704) n/a

Net income tax expense (94,944) (100,032) (5.1%)

Net profit 477,689 415,946 14.8%*Electricity produced and delivered by Cernavoda NPP in the National Energy System.**Including revenues from the sale of thermal energy, insignificant in the total revenues.

Operating profit (EBITDA) increased by 1.1% compared to the same period of the

previous year. The increase was caused by a decrease in operating expenses, less

depreciation and amortization by 5%, partially offset by a decrease in operating

income of 1.8%, influenced by a 2,2% decrease in electricity sales revenues.

The operating income decreased by 1.8%, determined by the 3.2% increase in the

weighted average price of the electricity sold in period January 1 - September 30,

2020 as compared to the weighted average price from the same period of 2019,

considering the sale of a total quantity of electricity that was higher by 1.2%.

Following Government Emergency Ordinance no. 114/28.12.2018, which amends and supplements Electricity

and natural gas law no. 123/2012, ANRE issued Order no. 216/11.12.2019 for approving the Methodology for

setting prices for the electricity sold by producers based on regulated contracts and the quantities of electricity

from the regulated contracts concluded by producers with last-instance suppliers. According to ANRE

Resolution no. 2213/23.12.2019, the quantity assigned to SNN for Q1 2020 for regulated contracts was 1,087

GWh, out of which 701.4 GWh for Q1 2020 and 385.6 GWh for Q2 2020. For the first half-year of 2020,

ANRE established a regulated price for SNN of RON 188.47 /MWh (without Tg). For the 2nd half-year of

2020, ANRE issued Order 88/12.06.2020 for approving the Methodology for setting regulated fees and prices

applied by last-instance providers to end clients for period July 1 - December 31, 2020 [...]. According to

ANRE Resolution no. 1077/29.06.2020, the quantity assigned to SNN for the second half-year of 2020 for

regulated contracts was 1,095 GWh, out of which 394.9 GWh for Q3 2020 and 700.1 GWh for Q4 2020. For

the first half-year of 2020, ANRE established a regulated price for SNN of RON 182.63 /MWh (without Tg).

According to ANRE decision 326/2019, the quantity of electricity assigned to SNN for 2019 under regulated

contracts is 1,377 GWh (out of which 558.54 GWh for January 1 – September 30, 2019), at a regulated price of

188.33 RON/MWh (without Tg).

Over the nine-month period ended on September 30th, 2020, the Company did not sell energy on the regulated

market (18.7% over the nine-month period ended on September 30th, 2019). 7.1%), at a regulated price.

Compared to the same period of the previous year, the quantity of electricity sold on the competition market of

bilateral contracts decreased by 36% and benefitted from an increase in the average sale price on this market by

16% (price without Tg). The quantity of electricity sold by SNN on the spot market (PZU and PI) in period

January 1 - September 30, 2020 increased by 157%, given an average sale price on this market that was 30%

lower (price without Tg).

Operating expenses, minus impairment and amortization, decreased by 5% in period January 1 - September

30, 2020, compared to the same period of 2019. This evolution is determined by the decrease of expenses with

the purchased electricity, personnel expenses, other operating expenses, expenses with repairs and maintenance,

partially compensated by the increase of expenses with nuclear fuel and expenses with electricity transportation

and expenses with spare parts.

Net currency exchange differences positively influenced the net result, so in the period January 1st -

September 30th, 2020, net financial revenues were recorded, while in the same period of the previous year net

financial expenses were recorded. The main currencies to which there are exposures are EUR and CAD.

The decrease of net expenses with the profit tax positively influenced the net result. This decrease was caused

by a reduction in the actual profit taxation rate from 19% for period January 1 - September 30, 2019 to 17% for

period January 1 - September 30, 2020.

Electricity sales (quantities, prices and values) during the 3rd quarter of 2020

Sales by typesQuantities

in MWh

%

of total

sales

Average price

[Ron/MWh

with Tg

included]

Revenues

from sales

[Ron]

Sales on the regulated market 394,821 16.7% 183.93 72,620,790

Sales on the competitive market (bilateral

contracts and PZU and PI contracts), out of

which:

1,963,596 83.0% 256.15 502,983,411

- Sales on PCCB - LE, PCCB - NC, PC - OTC

contracts and supply contracts1,726,146 73.0% 263.57 454,963,045

- PZU and PI sales 237,450 10.0% 202.23 48,020,366

PE positive imbalances*) 7,397 0.3% 156.37 1,156,690

Total sales in the 3rd quarter of 2020 2,365,814 100% 243.79 576,760,892

*) NB: RON 74,551 of the presented value represents revenues redistributed in July - August 2020

resulted from the balancing of the system, based on the application of ANRE Order no. 76/2017 and

ANRE Order no. 31/2018. The value of positive imbalances for September 2020 is estimated.

The electricity quantity sold on the regulated market, based on contracts, on the spot market (PZU

and PI) and on PE is 2,365,814 MWh, 4.9% more than the sales program, of 2,255,817 MWh (sized

on the production estimate, without estimating unplanned outages) and 12.8% less than the

electricity quantity sold in the same period of 2019, following the delay of the scheduled shutdown

of Unit 1 of CNE Cernavoda.

The difference between the electricity sold by the Company and the electricity produced and

delivered by CNE Cernavoda (180.5 thousand MWh) is represented by the electricity purchased for

the full coverage of the contractual obligations, an electricity quantity that was purchased 46% by

term contracts, 41% from the spot market and the rest from PE.

The revenues obtained from the electricity market related to electricity deliveries in Q3 2020

are 576,760,892 lei (out of which 74,551 lei represents redistributed revenues resulted from

balancing the system, 16.8% lower than the budget revenues for Q3 2020 following the delay of

the scheduled stoppage of Unit 1 of NPP Cernavoda, and 2.7% lower than the same period of

the previous year.

The average weighted sale price, for the electricity quantities sold (without the regulated market

and PE), resulted in Q III of 2020, is of RON 256.15/MWh (including Tg). In the 1st quarter of

2019 the average weighted sale price, for the energy quantities sold (without the regulated market

and PE) was 225.99 lei/MWh (including Tg).

The sold electricity quantities on the competitive market (bilateral contracts) represented in Q3

2020 a percentage rate of 73% out of the total volume of the sold energy. The average sale price

on bilateral contracts to be delivered in Q3 of 2020 was 263.57 lei/MWh (with Tg included),

registering a drop of 19% compared to the average price registered in Q2 of 2019, of 222.09

lei/MWh (Tg included), given that Tg in Q2 of 2019 was lower by 0.12 lei/MWh.

On the spot market (PZU and PI), over the second quarter of 2020, a quantity of electricity

representing 10% of the total sale volumes was sold, as compared to the percentage share of 8.5%

recorded over the third quarter of 2019. The energy average selling price on the spot market (PZU

and PI) achieved by SNN in the third quarter of 2020 was 202.23 lei/MWh (with Tg included),

compared to 258.54 lei/MWh (with Tg included) recorded during the same period of 2019 (PZU).

In Q III of 2020, SNN implemented 108 energy sale contracts, as follows:

- 5 regulated contracts;

- 50 contracts concluded on PCCB - LE;

- 15 contracts concluded on PCCB - NC;

- 36 transactions concluded on PC - OTC;

- 2 supply contracts for 2 end users.

Production and sale activity

The gross production of electricity of the two operational units of Cernavoda NPP was

8,354,013 MWh over the period January 1 - September 30, 2020 (of which 2,389,939

MWh in the 3rd quarter of 2020); from this gross production, the own technological

consumption of the Units during operation, and during the outages ensured from own

production was of 670 thousand MWh over the period January 1 - September 30, 2020 (of

which 205 thousand MWh in the 3rd quarter of 2020).

Thus, the electricity produced and delivered in the National Energy System (“SEN”) was

7,683,903 MWh in period January 1 - September 30, 2020, compared to the same period of

2019 (7,523,762 MWh), an increase of 2.1%. The increase is mainly due to the

modification of the thresholds of triggering the ROPT local supra-power protection systems

(the system of protecting the reactor at high zonal powers) implemented at the end of last

year at Unit 1 of Cernavoda NPP, which caused the increase of the reactor power, after

cleaning the steam generators in 2016.

In Q3 2020 the electricity quantity produced and delivered in SEN was 2,185,269, 16.1%

lower than the level recorded in Q3 2019 of 2,605,048 MW/h. The decrease was mainly

caused by the delay of the scheduled stoppage of Unit 1 of Cernavoda NPP, started on June

20, 2020, compared to May 3, 2020, according to the initial planning, which led to a

cumulated number of operating hours 752 hours shorter than in the same period of last

year.

The net electricity production program approved by the Board of Directors for 2020 (June

2020 revision) considered a quantity of 10,391,265 MWh; of this, for the period January 1 -

September 30, 2020, the production program considered a quantity of 7,639,934 MWh,

being implemented in a percentage of 100.6% and for the 3rd quarter of 2020 it considered

a quantity of 2,179,050 MWh, being implemented in a percentage of 100.3%.

The installed power usage factor, recorded by each operational unit within the Cernavoda

NPP during the 3rd quarter of 2020, and cumulated after the start of commercial usage (Unit

1 on December 2, 1996, Unit 2 on November 1, 2007) until September 30, 2020 was as

follows:

Cernavod

a NPP

unit

Cumulated

First

semester

2020

July

2020

August

2020

September

2020

Cumulated

Q3

2020

Cumulated

from the

commercial

exploitation

Unit 1 94.86% - 79.87% 97.64% 82.73% 90.43%

Unit 2 98.38% 97.39% 89.83% 97.71% 97.89% 94.35%

The lower value of the factor for using the installed capacity at Unit 1 CNE Cernavoda reflects the

influence of the scheduled outage for an actual duration of 1.053 hours, registered as of June 20, at

11:00, completed on August 3, at 08:00. The unplanned extension of the scheduled outage of Unit 1

CNE Cernavoda lasted for 65.5 hours, and the resynchronization was on August 6, at 04:04.

In August there was an unscheduled stop of Unit 2 of Cernavoda NPP, with a duration of 46.6

hours, starting with August 29, at 08:21.

Within the activity of electricity trading, the Company is obligated to

submit letters of bank guarantee to certain contractual partners,

according to the provisions stipulated in the electricity sale-purchase

contracts. Mainly, these refer to: the contract concluded with C.N.

Transelectrica S.A. for electricity transportation; the agreement

concluded with OPCOM S.A. for electricity trading on PZU (Next

Day Market ) and PI (Intra-daily Market); regulated contracts,

concluded with last resort providers, based on ANRE Decisions no.

2213/2019 and 1077/2020; contracts concluded on the PCCB – NC

platform (centralized market of bilateral electricity contracts – the

trading method according to which contracts are awarded by

Continuous Negotiation); contracts concluded on the PCSU platform

(centralized market for the universal service), plus tender procedure

securities; the agreement for participating in the PE (balancing

market) concluded with C.N. Transelectrica S.A. and the contract

concluded with Ciga Energy S.A. for providing the representation

service as the part in charge with balancing (PRE).

For the purpose of this activity, between January 1st and September 30th, 2020:

- 22 letters of bank guarantee were issued, in value of RON 77,428,571;

- 46 letters of bank guarantee were liquidated, amounting to RON

149,780,198 (issued in 2018, 2019 and 2020), out of which for 28 letters of

bank guarantee, there were collateral deposits of RON 95,209,494.

- the value of 9 letters of bank guarantee was increased, from 21,543,199

RON to 21,552,053 RON.

On September 30, 2020, there were in the balance 28 letters of bank guarantee

amounting to RON 92,609,325, out of which, for one letter of bank guarantee,

there was a collateral deposit set up amounting to RON 1,450,000.

The quantities of electricity sold in the first 9 months of 2020, and the

corresponding incomes, broken down by types of sale contracts, are presented in

the table below:

Electric power sales (quantities, prices and values) over the period January 1

- September 30, 2020

Sales by types

Quantitie

s in

MWh

%

of

total

sales

Average

price

[Ron/MWh

with Tg

included]

Revenues

from sales

[Ron]

Sales on the regulated market1,481,5

5818.7% 188.21

278,850,7

22

Sales on the competitive market

(bilateral contracts and PZU and PI

contracts), out of which:

6,408,1

0181.0% 227.15

1,455,617

,557

- Sales on PCCB - LE, PCCB - NC, PC -

OTC contracts and supply contracts

4,040,7

6851.1% 266.81

1,078,120

,683

- PZU and PI sales2,367,3

3329.9% 159.46

377,496,8

74

PE positive imbalances*) 25,625 0.3% 124.57 3,191,983

Total sales January 1 - September

30, 2020

7,915,2

84100% 219.53

1,737,660

,262

*) NB: RON 145,161 of the presented value represents revenues redistributed in January -

August 2020 resulted from the balancing of the system, based on the application of ANRE

Order no. 76/2017 and ANRE Order no. 31/2018. The value of positive imbalances for

September 2020 is estimated.

The electricity quantity sold on the regulated market, based on contracts, on the spot market (PZU and

PI) and on PE is 7,915,284 MWh, 2.2% more than the sales program, of 7,742,012 MWh (sized on the

production estimate, without estimating unplanned outages) and 1.2% more than the electricity

quantity sold in the same period of 2019.

The difference between the electricity sold by the Company and the electricity produced and delivered

by CNE Cernavoda (231,4 thousand MWh) is represented by the electricity purchased for the full

coverage of the contractual obligations, an electricity quantity that was purchased 46% from the spot

market, 40% by long-term contracts, and the rest on PE.

The revenues obtained from the electricity market related to electricity deliveries over the period

January 1 - September 30, 2020 are of RON 1,737,660,262 (of which RON 145,161 represent

redistributed revenues resulted from balancing the system, 5.8% lower than the budget revenues over

the period January 1 - September 30, 2020, and 2.1% lower than the revenues in the same period of the

previous year, respectively.

According to the sales strategy:

- in period May - June 2020, 4 purchase contracts were concluded on CCB - NC and 10 purchase

transactions were performed on PC - OTC in July, for an hourly quantity of 95 MW/h, at an

average price of 233.2 lei/MWh which partially covered the sale obligations assumed by the

contracts whose average weighted price in July 2020 was 266.77 lei/MWh;

- in June 2020, 5 purchase contracts were concluded on the Centralized Markets in June 2020, for a

constant power of 50 MWh, with delivery in week June 22-28, at an average price of 163.3

lei/MWh which partially covered the sale obligations assumed by the contracts whose average

weighted price in June 2020 was 249.16 lei/MWh.

The average weighted sale price, for the electricity quantities sold (without the resulted market and PE),

resulted over the period January 1 - September 30, 2020, is of 227.15 RON/MWh (including Tg). For

comparison, the weighted average price of all the transactions performed on the markets on which SNN

operated over the period January 1 - September 30, 2020 (PCCB – LE, PCCB – LE flex, PCCB – NC, PC –

OTC, PZU and PI), calculated based on the values published by OPCOM in the monthly market reports, is

of RON 228.55/MWh. Over the period January 1st - September 30th, 2019, the average weighted sale

price, for the energy quantities sold (without the regulated market and PE) was of RON 229.95/MWh

(including Tg).

The average weighted sale price, for the electricity quantities

sold (without the resulted market and PE), resulted over the

period January 1 - September 30, 2020, is of 227.15

RON/MWh (including Tg). For comparison, the weighted

average price of all the transactions performed on the

markets on which SNN operated over the period January 1 -

September 30, 2020 (PCCB – LE, PCCB – LE flex, PCCB –

NC, PC – OTC, PZU and PI), calculated based on the values

published by OPCOM in the monthly market reports, is of

RON 228.55/MWh. Over the period January 1st - September

30th, 2019, the average weighted sale price, for the energy

quantities sold (without the regulated market and PE) was of

RON 229.95/MWh (including Tg).

Following Government Emergency Ordinance no.

114/28.12.2018, which amends and supplements Electricity

and natural gas law no. 123/2012, ANRE issued Order no.

216/11.12.2019 for approving the Methodology for setting

prices for the electricity sold by producers based on

regulated contracts and the quantities of electricity from the

regulated contracts concluded by producers with last-

instance suppliers. According to ANRE Resolution no.

2213/23.12.2019, the quantity assigned to SNN for Q1 2020

for regulated contracts was 1,087 GWh, out of which 701.4

GWh for Q1 2020 and 385.6 GWh for Q2 2020. For the first

half-year of 2020, ANRE established a regulated price for

SNN of RON 188.47 /MWh (without Tg). For the 2nd half-

year of 2020, ANRE issued Order 88/12.06.2020 for

approving the Methodology for setting regulated fees and

prices applied by last-instance providers to end clients for

period July 1 - December 31, 2020 [...]. According to ANRE

Resolution no. 1077/29.06.2020, the quantity assigned to

SNN for the second half-year of 2020 for regulated contracts

was 1,095 GWh, out of which 394.9 GWh for Q3 2020 and

700.1 GWh for Q4 2020. For the first half-year of 2020,

ANRE established a regulated price for SNN of RON 182.63

/MWh (without Tg).

The electricity quantities sold on the competitive market of

bilateral contracts represented over the period January 1 -

September 30, 2020, a percentage rate of 51.1% out of the

total volume of the sold electric power. The average sale

price on bilateral contracts in this period was 266.81

RON/MWh (with Tg included), recording an increase of

15,9% as compared to the average price recorded in the

same period of 2019, of 230.14 RON/MWh (with Tg

included); given the fact that the values of the electric power

input transport fee in the Tg network were the following:

RON 1.18 /MWh for the period July 1, 2018 - December 31,

2019, according to ANRE Order no. 108/20.06.2018 and

RON 1.30 /MWh for the period January 1, 2020 - September

30, 2020, according to ANRE Order no. 218/11.12.2019.

On the spot market (PZU and PI), over the period January 1st

- September 30th, 2020, a quantity of electricity representing

29.9% of the total sales volume was sold, compared to the

percentage share of 11.8% recorded over the same period of

2019. The energy average selling price on the spot market

(PZU and PI) achieved by SNN over the period January 1st -

September 30th, 2020 was of RON 159.46/MWh (with Tg

included), as compared to RON 228.62/MWh (with Tg

included) recorded over the same period of 2019.

Over the period January 1 - September 30, 2020, SNN

implemented 179 energy sale contracts, as follows:

- 10 regulated contracts, out of which 5 with delivery on

the first hour of January;

- 86 contracts concluded on PCCB - LE;

- 44 contracts concluded on PCCB - NC;

- 37 transactions concluded on PC - OTC;

- 2 supply contracts for 2 end users.

No contracts were terminated, and no significant delays were

notified compared to the due payment terms provided in the

contracts over the period January 1 - September 30, 2020. In

all the cases in which there have been delays, the Company

sent notifications and charged penalties according to the

contractual provisions.

Investment projectsThe total value of the investment program of SNN for 2020 is

309,544 thousand RON (without the component allocated to the

payment of the debt service related to long-term loans), a program

approved by Resolution no. 3/05.03.2020 of the Ordinary General

Assembly of Shareholders of SNN, as part of the Revenues and

Expenses Budget ("BVC") of SNN for 2020.

The comparative situation of the investment accomplishments (value

and percentage) for 2020 compared to the same period of 2019 is

presented in the table below:

Year

Value

of the investment

program

[thousand RON]

Performed

(01.01 - 30.09)

[thousand RON]

Achievement

level

(01.01 - 30.09)

(%)

2020 309,544 157,112 50.8%

2019 256,548 178,370 69.5%

As in the previous years, Nuclearelectrica S.A. structured its investment

development program on objectives defined in relation to the needs of the

production branches (Cernavoda NPP and Pitesti NFF), so as to achieve a

high level of utilization of the production capacity (EAF Energy

Availability Factor) in compliance with the nuclear safety norms and the

long-term maintenance of the level of excellence in the operation of the

plant. At the same time, the goal of the development program is to cover

the necessity to upgrade/refurbish certain systems, for economic reasons

(specific consumption reductions, improvement of certain parameters

related to served processes, with a positive impact on efficiency), and legal

ones – the need to implement upgrades associated with nuclear security,

environment protection and labor security, representing imperative

requirements from the regulatory authorities in the field.

The investment program of SNN for 2020 annexed to BVC was value-sized by considering the ongoing contractual

commitments, the estimates regarding the investment objectives to be made in the following year, including amounts allocated to

investment projects for which the fulfillment of certain requirements outside the control of SNN is anticipated (e.g. prior

approvals of regulation authorities, legal terms regarding the completion of public tender procedures, including appeals, obtaining

the necessary approvals from SNN corporate bodies, etc.), in order to allow the implementation of these projects by fitting into

the approved budget values.

The largest investment projects that are planned to be completed in 2020 are: Module 11 DICA; modernization and expansion of

the Physical Protection System – priority 2, stage 1; refurbishing the power outlet transformer and delivering it to CNE

Cernavoda and fitting the Seiru Warehouse. In addition, the investment program includes inspections and capital repairs carried

out at Unit 1 of CNE Cernavoda during the scheduled shutdown, other necessary investment projects within the CNE Cernavoda

branch, the FCN Pitesti branch and the headquarters, as well as investment objectives with completion in the next years.

Out of the investment projects provided in the investment program we mention:

- “Planned outage of Unit 1 CNE Cernavoda (regular general inspections and capital repairs”: budgeted 111,297

thousand RON – the value degree of implementation as of September 30, 2020 is 76.3%.

- “Extending the life cycle of unit 1 by re-tubing the reactor and refurbishing the main systems”: budget 49,710

thousand RON - the accomplishment degree value-wise as of September 30, 2020 is of 58.2%.

- “Burnt fuel intermediary storage”: budgeted 10,053 thousand lei – the value achievement degree as of September 30,

2020, is 25.4%. The reception of Module 11 took place on June 5, 2020. The process of contracting the construction

works of Modules 12 – 17 has been completed, and the contract was signed on June 12, 2020.

- “Modernization and expansion of the physical security system”: budget 8,511 thousand RON – the achievement value

degree as of September 30, 2020 is of 28.4%.

- “Fitting the Seiru Warehouse”: budgeted 2,871 thousand lei – the implementation value degree as of September 30,

2020, is 129.8%. The budgeting of this investment was carried out with caution, since on the date on which BVC 2020

was drafted there were uncertainties related to its continuation.

- “Increasing the safety in the operation of the power evacuation system of CNE Cernavoda, by refurbishing the power

evacuation transformers and providing a backup transformer for two units”: budgeted 2,194 thousand lei – the

implementation value degree as of September 30, 2020 is 131.8%.

- “Improving the CNE Cernavoda response, respectively the nuclear security functions in case of events outside the

design bases following the nuclear accident occurred at the Fukushima 1 nuclear plant, Japan”: budget 1,486 thousand

RON - achievement value degree as of September 30, 2020 is of 5%.

- “Modernization of the bundle manufacture line”: budgeted 551 thousand RON – the implementation value degree as of

September 30, 2020 is 92.7%.

- “Fittings”, representing procurements of goods and other investment expenses: budgeted at RON 71,478 thousand – the

value degree of implementation as of September 30, 2020 is 22.7%.

Refurbishment of Unit 1 of Cernavoda NPP

The refurbishment of Unit 1 CNE Cernavoda represents the

largest investment project developed exclusively by

Nuclearelectrica.

Any nuclear unit has a limited period of operation,

established by project. In case of units with CANDU

technology, the designed period of operation is of 210,000

hours of operation at nominal power, which at a capacity

factor of 80%, is translated by an economical operational

exploitation period of approx. 30 years. The main

components and structures limiting the period of operation

are the fuel channels, feeders and the envelope of the

nuclear reactor.

Given the major costs implied by performing such new

large dimension production units, by using nuclear

technology, the refurbishment technology is attractive for

the owner of a nuclear unit. the main advantage of such

option is that, at the end of the refurbishment, the owner

will be in the possession of a nuclear unit capable to operate

on project parameters for another cycle of life (25 – 30

years), for costs situated around 40% of the ones which

might be implied by building a similar new objective. In

addition, the refurbishment is more beneficial than building

a new capacity through the fact that the period necessary for

effective refurbishment works is significantly shorter,

estimated, based on information available starting right

now, in between 24 and 30 months.

By the press release published on February 21, 2020, SNN announced that in

February 2020 there was at CNE Cernavoda an international Pre - SALTO

(Safety Aspects of Long Term Operation) assessment mission of the International

Atomic Energy Agency on the implementation of the project for retrofitting Unit

1 of CNE Cernavoda.

The international assessment team ascertained an efficient use of the programs

related to the implementation of the first stage of the project, by complying with

the time schedule and an efficient use of international experience in retrofitting

projects implemented within other CANDU units, and recommended the

continuous improvement of the long-term operational strategy and the permanent

revision of the process correlated with the implementation of a comprehensive

methodology regarding the structures and components of the long-term operation

process.

By the current report published on October 9, 2020, SNN informed its shareholders and investors

regarding the signing of the Agreement between the Government of Romania and the Government of the

United States of America was signed regarding the cooperation in connection with the nuclear-energy

projects from Cernavoda and in the civil nuclear energy sector in Romania, on October 9, 2020, in

Washington DC. In relation to the investment projects implemented by SNN, the stage of authorizing this

agreement mainly refers to the extension of the capacity of the NPP Cernavoda and the Project for

Modernizing Unit 1 of NPP Cernavoda.

Also, the USA Government expressed its interest to find financing institutions that would support the

global funding of the projects by complying with the policies, procedures and the decision independence

of these institutions, and this financial component was included in the Inter-Government Agreement.

According to the national and European legislation, the Inter-Government Agreement draft is to be sent to

the European Commission according to the provisions of the Euratom Treaty.

Project of Units 3 and 4 of Cernavoda NPP

According to the Resolution number 8/12.06.2020 of the Extraordinary General

Meeting of Shareholders of Societatea Nationala Nuclearelectrica S.A., the

shareholders of the Company decided the abrogation of the Strategy for the

continuation of Cernavoda NPP Units 3 and 4 project through the organization

of an investor selection procedure (2014) as well as the revised Strategy for the

continuation of Cernavoda NPP Units 3 and 4 project through an investor

selection procedure (2018) and the empowerment of the SNN Board of

Directors to initiate the procedures/undertakings/actions regarding the ceasing

of the negotiations with CGN, as well as the ceasing of the legal effects

(through party agreement, denunciation etc) of the following documents: “The

Memorandum of Understanding regarding the development, construction,

operation and decommissioning of Cernavoda NPP Units 3 and 4 (MoU), and

respectively of the (ii) Investors Agreement in preliminary form.”

Also, the shareholders of the Company decided the empowerment of the SNN

Board of Directors to initiate the necessary undertakings for the analysis and

crystallization of the strategic options regarding the construction of additional

nuclear energy production capacities.

By the current report published on October 9, 2020, SNN informed its shareholders

and investors regarding the signing of the Agreement between the Government of

Romania and the Government of the United States of America was signed regarding

the cooperation in connection with the nuclear-energy projects from Cernavoda and

in the civil nuclear energy sector in Romania, on October 9, 2020, in Washington

DC. In relation to the investment projects implemented by SNN, the stage of

authorizing this agreement mainly refers to the extension of the capacity of the NPP

Cernavoda and the Project for Modernizing Unit 1 of NPP Cernavoda.

Also, the USA Government expressed its interest to find financing institutions that

would support the global funding of the projects by complying with the policies,

procedures and the decision independence of these institutions, and this financial

component was included in the Inter-Government Agreement. According to the

national and European legislation, the Inter-Government Agreement draft is to be

sent to the European Commission according to the provisions of the Euratom

Treaty.

SNN in figures and indicators

Corporate Social Responsibility and Sponsorships

Activity of SNN at BSE

Evolution of SNN shares