Q1 2026 Consolidated Report of the Management Board of Hidroelectrica

Contents

IDENTIFICATION DATA OF HIDROELECTRICA 4

SUMMARY OF Q1 2026 MANAGEMENT BOARD REPORT 5

Q1 2026 MANAGEMENT BOARD REPORT 8

1. Group presentation 8

2. Key Events during the reporting period 11

3. Shareholders Structure and Share Price Evolution 13

4. Financial Results at and for the period of three and nine months ended on 31 March 2026 15

   1. Financial Indicators 15

   2. Net Debt/ (Cash) Adjusted 15

   3. Breakdown of revenue 16

   4. Operating Expenses 18

   5. Investment activity 19

   6. CASHFLOW ERROR! BOOKMARK NOT DEFINED.

   7. Financial position 28

5. Risk Management 30

6. Subsequent Events 31

Management Statement 33

Glossary of terms and definitions 34

Consolidated Interim Financial Statements 35

Notes:

This report is based on the condensed consolidated interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting adopted by the European Union and drafted according to the provisions of Law no. 24/2017 on financial instruments issuers and market operations, republished, and of Regulation no. 5/2018 issued by the Financial Supervisory Authority.

This report does not constitute a recommendation/offer/invitation to purchase shares issued by Hidroelectrica. This report contains consolidated-level information regarding the key operational indicators of the Hidroelectrica Group. Therefore, these pieces of information reflect the results and financial position for the reporting period available as of the date of this report and do not guarantee the future performance of the Group. The information in this document is selective and may require updates, revisions, and modifications under certain circumstances. Hidroelectrica assumes no obligation or commitment to publish any updates, revisions, or modifications to any information contained in this report, unless required by applicable law.

Certain figures included in this Report have been subject to rounding adjustments; as a result, figures presented for the same illustrated category in different tables may vary slightly. Additionally, the figures presented as totals in certain tables may not be an arithmetic aggregation of the preceding figures. Moreover, the percentages in the tables have been rounded and, as a result, may not sum up to 100%. Calculations, variations, and other percentages may slightly differ from their actual calculations due to the rounding of underlying financial, statistical, and operational information.

In case this report refers to any information from any external source, this information should not be considered adopted/approved by Hidroelectrica as accurate/correct.

This report may contain forward-looking statements. These statements reflect the current knowledge of the company as well as expectations and forecasts about future events. By their nature, forward-looking statements are subject to various risks, many of which are beyond the company's control, which could cause the actual results of the company to significantly differ from the expressed or anticipated results and performances. None of the future forecasts in this report should be considered promises, nor should they be considered implying an assurance or guarantee that the assumptions on which the future forecasts were based or the information and statements contained in this report are correct, accurate, or complete.

This report does not contain all the information that may be necessary regarding the company and its actions. Each person who accesses this report should conduct their own analysis.

The content of this report is the property of Hidroelectrica, and this document or any part of it may not be reproduced by any other person without the consent of Hidroelectrica.

Hidroelectrica Group recorded operational and financial results in the first three months of 2026 significantly above those achieved in the same period of 2025. Revenues increased by 67% compared to the same period of 2025, while the operating margin of 47% and the net margin of 42% reflect the reconfiguration of the revenue structure, with an increasing contribution from the supply segment.

Q1 2026 compared to Q1 2025

• The Hidroelectrica Group recorded significantly improved results, with gross profit increasing by 122%
• Net electricity production increased by 36%
• Revenues advanced by 67%
• Operating margin reached 47%, up by 37%
• Net margin reached 42%, up by 32
• Net profit increased by 122% to RON 1,307 million, from RON 589 million
• Earnings per share increased by 122% to RON 2.91/share, from RON 1.31/share.

Within this framework, the Hidroelectrica Group implemented a prudent commercial policy, actively managed price and volume risks, and dynamically calibrated the production-procurement mix, maintaining a solid financial position and results aligned with energy market developments.

The supply portfolio expanded at an accelerated pace, confirming the repositioning towards a hybrid business model, with a stronger commercial footprint and an expanded customer base. Market purchases increased, while market risk was managed through phased contracting and commercial discipline. Robust liquidity and the low level of indebtedness support the financing of the investment plan. Operational efficiency, optimization of the production-procurement mix, the development of renewable energy sources (RES) and storage projects aimed at reducing structural exposure to hydrological variability and strengthening long-term resilience, as well as predictability in governance, remain key priorities for the Group in the period ahead.

Source: Hidroelectrica

Revenues amounted to RON 3,129 million, 67% above the level recorded in the same period of the previous year, with an operating margin of 47% and a net margin of 42%, reflecting the Group's ability to capitalize on its traditional competitive advantage derived from the low cost of own hydropower generation. The increased dependence on the wholesale electricity market and the reconfiguration of the revenue structure, with a growing contribution from the supply segment, influenced margin levels.

As at 31 March 2026, the supply portfolio comprised 1,312,627 consumption sites (CS), representing an increase of 108% compared to the same date of the previous year, when 630,927 CS were recorded. This increase of 681,700 CS reflects both the attraction of a significant number of new household customers and a strong expansion in the non-household segment.

*The number of CS in the portfolio (excluding those directly supplied from the hydroelectric plant bars and those supplied from the transmission network/other non-concessionaire distribution operators)

Source: Hidroelectrica

The evolution of the portfolio reflects the consolidation of the Company's position in the competitive electricity supply market, driven by the increasing commercial attractiveness of its offers and the high level of interest shown by both household and non-household customers in the services provided.

From an operational perspective, the accelerated growth of the portfolio has led to a significant increase in the volumes managed across supply-related processes, with a direct impact on contracting activities, billing, consumption data management, customer relations, and the handling of requests and complaints.

In this context, maintaining an adequate level of operational performance and quality indicators requires the continuation of measures aimed at strengthening administrative and operational capacity, including through workflow optimization, the development of IT infrastructure, and the adaptation of available resources to the current and forecasted level of activity. At the same time, the portfolio evolution highlights the need to implement continuous operational scaling and digitalization measures

in order to support an efficient, predictable supply model focused on improving the quality of services provided to end customers.

In January 2026, according to the latest available monthly report published by ANRE, Hidroelectrica held a market share of 18.21% on the competitive segment and a market share of 16.86% at the level of the total electricity supply market, maintaining the leading position in both categories as at the reporting date.

Source: ANRE Report on the Results of Monitoring the Electricity Market in January 2026

During the first three months of 2026, Hidroelectrica actively continued its strategic initiatives aimed at diversifying its renewable energy generation portfolio, pursuing the objective of remaining a 100% green company. Activities carried out during this period included the identification, analysis, and documentation of new investment opportunities, advancing the screening, due diligence, and preliminary structuring processes for potential transactions, both for the acquisition of stakes in existing projects and for the development of new generation capacities. These initiatives were conducted in parallel with the implementation of projects already included in the operational portfolio, demonstrating a balanced approach between sustainable growth and the rigorous execution of ongoing projects, with a constant focus on meeting implementation timelines.

1. ‌Group presentation

   Societatea de Producere a Energiei Electrice în Hidrocentrale Hidroelectrica S.A. ("Hidroelectrica" or "the Company") is a joint stock company managed in a two-tier system that carries out its activity in accordance with the Romanian legislation, established under the Romanian Government Decision nr. 627 of 13 July 2000, registered in Romania at the Trade Register Office attached to the Bucharest Tribunal under no. J2000007426409, with headquarters located in Romania, Bucharest, 15-17 Ion Mihalache Boulevard, floors 10-15, District 1, having sole registration code 13267213 and LEI code 787200IISRQX09PRB732. The telephone/Fax number if the Company is +40 21.303.25.00.

   Starting from 12 July 2023, the regulated market on which the Company's shares are traded is the

   Bucharest Stock Exchange.

   Organizational structure

   Hidroelectrica is the main electricity producer in Romania and the main system service provider in Romania, with an essential role in the security of the National Power System ("NPS").

   The Company owns and operates 188 hydropower plants and micro-hydropower plants (including five pumping stations) with a total installed hydropower generation capacity of approximately 6.3 GW and a wind farm with a total installed capacity of 108 MW.

   The company has 7 hydroelectric branches and one branch that manages the Crucea wind farm, presented in the image below, the Iron Gates (Porțile de Fier) and Vâlcea being the most important for the Group in terms of their capacity to produce electricity and their share in the Group's total energy production.

   
   
   

   Hidroelectrica's branches; *PDF represents Porțile de Fier (Iron Gates) Source: Hidroelectrica

   The Company has been committed to producing 100% renewable energy since its establishment and has played a key role in designing and developing technological and operational concepts that have become industry standards. At the same time, Hidroelectrica operates as a wholesale energy seller as well as a direct electricity supplier to end customers, including both residential (household) consumers and non-residential consumers (businesses across various industrial sectors such as automobile manufacturing, telecommunications, and construction, among others).

   As a hydropower and wind energy producer, the Company leverages synergies between its generation and supply portfolios, while also capitalizing on the diversification of its energy mix by integrating other renewable sources, such as wind and solar energy, alongside hydropower.

   As of 31 March 2026, Hidroelectrica has the following subsidiaries (together, the "Group"):

   Subsidiary Activity Registered Office % participation at 31 March 2026 % participation at 31 December 2025

   Hidroserv S.A.

   ("Hidroserv")

   Uzina de Construcții Mașini Hidroenergetice

   S.R.L. ("UCMH")

   Source: Hidroelectrica

   Services (maintenance, repairs, construction)

   Manufacturing of engines and turbines

   Bucharest, Romania

   Resita, Romania

   100% 100%

   100% 100%

   Hidroserv provides maintenance and repair services for the hydroelectric assets of the Group, ensuring the operation of hydroelectric installations. The company offers a wide range of technical services, including preventive and corrective maintenance, as well as specialized technical consulting. Since October 2016, Hidroserv has been undergoing insolvency proceedings, within which a reorganization plan was approved by the Creditors' Meeting in June 2020 and confirmed by the court-appointed judge. As of 23 October 2023, Hidroserv successfully fully repaid all registered debts by making early payments for the amounts allocated to the final quarters listed in the "Final list of claims.". As a result of the implementation of the reorganization plan, Hidroserv exited the insolvency procedure on 26 June 2025 and is in the process of initiating a new growth cycle. UCMH is specialized in manufacturing equipment and mechanical components for hydropower plants and other energy installations. UCMH provides technical and production support to Hidroelectrica, contributing to the maintenance program and the rehabilitation and modernization program for hydropower equipment and infrastructure.

   On 22 February 2023, the Company was declared the winner of the sale procedure for the ABC business lines and the Câlnicel platform, which were previously owned by U.C.M. Reșița S.A. In January 2024, following approval by the EGMS of Hidroelectrica, a new subsidiary was established: Uzina de Construcții Mașini Hidroenergetice S.R.L., through which the business was taken over from U.C.M. Reșița S.A. The main activity of the new subsidiary is the manufacture of engines and turbines (NACE code 2811).

   Share capital and main characteristics of the shares issued by the Company

   The Company's registred share capital of RON 4,498,025,670 is fully subscribed and paid-up, being divided into 449,802,567 freely transferable ordinary registered shares, each with a nominal value of RON 10/share, issued in dematerialized form, with ISIN code RO4Q0Z5RO1B6 and traded on the regulated market administered by BVB under the symbol "H2O".

   Group's main activities

   Generation of Electricity and System Services

   The Group produces electricity through the operation of 188 hydropower plants and micro-hydropower plants (including five pumping stations) and 36 wind turbines of 3MW each, objectives strategically located in eight branches on the territory of Romania. The portfolio of hydroelectric power plants in operation consists of approx. 54% hydroelectric plants with accumulation, 46% run-of-river plants and less than 1% pumping capacities. The main production capacity is represented by the Iron Gates I and the Iron Gates II, accumulating approximately 22.75% of the installed capacity and 42.6% of the total electricity production in the last ten years.

   Hidroelectrica entered the wind energy production sector through the acquisition of Crucea Wind Farm, which represented 4% of Romania's total wind capacity in 2022. Subsequently, the General Meeting of Shareholders approved the merger by absorption of this entity into Hidroelectrica, effective 31 December 2022.

   The electricity produced by the company is traded on the wholesale energy markets as well as on the retail market (through its electricity supply activities for end consumers).

   For the operation of its generation capacities, Hidroelectrica operates under License No. 332, issued on 24 July 2001 by the National Energy Regulatory Authority (ANRE) for the commercial operation of electricity generation capacities, valid until 24 July 2026, in accordance with industry regulations and standards.

   Hidroelectrica is also the primary provider of system services in Romania, ensuring the stability and operational security of the National Energy System (NPS). The company supplies system services (also known as "technological system services") to Transelectrica S.A., the national transmission system operator, under the Electricity Supply License and associated conditions No. 2215, issued on 6 May 2020.

   Through this regulated procedure overseen by ANRE, Transelectrica S.A. purchases technological system services from Hidroelectrica under a contract-based framework, ensuring the safe operation of the energy system and maintaining the quality of transmitted electricity in compliance with the applicable regulatory requirements.

   Supply of electricity to end costumers

   The electricity market for end consumers in Romania is liberalized, allowing all consumers to freely choose their electricity supplier at negotiated prices. The competitive electricity market provides consumers with the flexibility to select the supplier and offer that best meet their needs at a competitive price.

   The supply tariff includes, in addition to the price of electricity, the costs of electricity transmission and distribution, the contribution to the support scheme for high-efficiency cogeneration and the cost of green certificates.

2. ‌Key Events during the reporting period

   Preliminary Key Operational Indicators' publication

   • On 11 February 2026, Hidroelectrica published preliminary key operational indicators for 2025.

   • On 29 April 2026, Hidroelectrica published preliminary key operational indicators for Q1 2026. OGMS Meetings

     On 23 December 2025, the Hidroelectrica Management Board convened the Extraordinary General Meeting of Shareholders for 27 January 2026, with the following main items on the agenda:

     • (i) The establishment by S.P.E.E.H. Hidroelectrica S.A., together with EDF Power Solutions International, of a joint venture/partnership (Joint Venture Company - JVC) with equal stakes of 50%-50%;

       (ii) The Shareholders' Agreement (SHA) to be concluded by S.P.E.E.H. Hidroelectrica S.A. with EDF Power Solutions International, setting out the terms and conditions governing the operation of the joint venture/partnership (Joint Venture Company - JVC) to be established by the parties for the development of the Tarnița Pumped Storage Hydropower Plant (CHEAP Tarnița) - the Proposed Investment/Opportunity.

     • The procurement of legal advisory services in connection with the share capital increase process of S.P.E.E.H. Hidroelectrica S.A.

     • The documentation prepared for obtaining the Certificate of Attestation of Property Rights over land assets in the patrimony of S.P.E.E.H. Hidroelectrica S.A., for six sites, of which five are located in Maramureș County and one site is located in Bihor County.

     • The procurement of legal advisory services in view of the Company's objective to acquire, upon commissioning, the CHEAP Frasin-Pângărați power plant, with an installed capacity of 300 MW, to be developed and constructed by Hidro Blue Energy SRL.

       All items on the agenda of the Extraordinary General Meeting of Shareholders (EGMS) were approved

       on the date of the meeting by the Company's shareholders, with the majority of votes cast.

       On 26 March 2026, the Hidroelectrica Management Board convened the Annual Ordinary General Meeting of Shareholders (OGMS) for 28 April 2026, with the following main items on the agenda:

     • Approval of Hidroelectrica's audited separate and consolidated annual financial statements for the

       financial year ended 31 December 2025.

     • The Annual Report, comprising the Management Board Report, the Supervisory Board Report and the Sustainability Statement, for the financial year ended 31 December 2025.

     • Allocation of the 2025 net profit, including approval of a total gross dividend amounting to RON 3,305,313,609, as well as a gross dividend per share of RON 7.348365.

     • Discharge of liability of the Supervisory Board and the Management Board for the financial year ended 31 December 2025.

     • The Remuneration Report of the Supervisory Board and the Management Board for the 2025 financial year.

     • Approval of 4 June 2026 as the "Record Date", 3 June 2026 as the "Ex-Date", and 25 June 2026 as the "Payment Date" for the dividends related to the 2025 financial year.

     • The annual evaluation report of the members of the Supervisory Board.

     Information regarding the resolution of the OGMS held on 28 April 2026 is presented in the Subsequent Events section.

     Selection process for Management Board members - CEO and CFO

     On 20 March 2026, the announcement regarding the recruitment and selection of candidates for two positions of member of the Company's Management Board - CEO and CFO - was published, including the eligibility requirements and the evaluation/selection criteria, in accordance with Article 35 (6) of OUG 109/2011 on the corporate governance of public enterprises, as subsequently amended and supplemented. The deadline for submission of applications was 20 April 2026.

     As of the date of this report, the selection procedures are ongoing, in line with the committed completion timeline.

     Other key events

     Signing of the turnkey contract for the "Țara Hațegului Photovoltaic Park" project

     On 19 February 2026, Hidroelectrica announced the signing of the turnkey contract for the "Țara Hațegului Photovoltaic Park" project, with a value of RON 24,412,390.00 excluding VAT. The contract was awarded following an open tender procedure, in which four bids were submitted. Following their evaluation, the winning bid was submitted by the consortium of ELECTRO-ALFA INTERNATIONAL S.A. and GENERAL ME.EL ELECTRIC S.R.L., with ELECTRO-ALFA INTERNATIONAL S.A. acting as consortium leader.

     The project involves the development of a photovoltaic park with an installed capacity of 8.9 MWp and an estimated average annual production of approximately 11 GWh. The investment will contribute to increasing renewable generation capacity, reducing carbon emissions, and supporting national and European energy transition objectives.

     The project will be implemented on a turnkey basis and will include design, equipment supply, construction works, testing, commissioning, and technical assistance during the warranty period. The contract duration is 12 months, of which 2 months are allocated for the design phase and 10 months for execution.

     Through this investment, Hidroelectrica further strengthens its position as a leader in renewable energy generation in Romania, continuing its strategy to develop new renewable capacity complementary to its hydropower portfolio.

     Memorandum Proposal pursuant to GEO 89/2025

     On 6 February 2026, Hidroelectrica submitted to the Ministry of Energy the proposed Memoranda for Hidroelectrica and its subsidiaries, respectively Hidroserv and UCMH, pursuant to GEO 89/2025, requesting exemptions in order to fill the vacant positions existing at the end of 2025, necessary for maintaining the safe operation of hydropower assets and continuing strategic investments for the national energy system, as well as for increasing the number of employees compared to the workforce level recorded at the end of 2025, in order to ensure the resources required for the proper conduct of the electricity supply activity.

     As of the date of this report, the submitted Memoranda have not been approved.

3. ‌Shareholders Structure and Share Price Evolution

   Shareholder structure as at 31 March 2026
   
   

   Shareholder	Ownership	Percentage of ownership in the share capital
   Romanian State through Ministry of Energy	360,094,390	80.0561%
   Legal persons	76,458,964	16.9983%
   Individuals	13,249,213	2.9456%
   Total	449,802,567	100.0000%

   Source: Depozitarul Central, Hidroelectrica

   During the period 1 January - 31 March 2026, according to information published by the Bucharest Stock Exchange (BVB), Hidroelectrica shares recorded a minimum closing price of RON 123.3 (8 January 2026) and a maximum closing price of RON 152.9 (20 February 2026), while the average share price amounted to RON 140.1.

   
   
   

   Source: BSE, Hidroelectrica

   As of 31 March 2026, Hidroelectrica ranked third on the Bucharest Stock Exchange in terms of trading value over a one-year period. On the same date, the company held the top position among Romanian-listed companies by market capitalization, reaching a value of RON 66,8 billion.

4. ‌Financial Results at and for the period of three months ended on 31 March 2026

   ‌1. Financial Indicators
   			RON million
   Indicators	3M 26	3M 25	Change (%)
   Revenue	3,129	1,868	67%
   EBITDA	1,707	867	97%
   Operating Profit	1,480	643	130%
   Profit for the period	1,307	589	122%
   Basic and diluted earnings per share	2.91	1.31	122%

   Source: Hidroelectrica

   Indicators	Calculation method	31 March 2026
   Current liquidity indicator	Current assets/Current liabilities	4.55
   Degree of indebtedness	Borrowed capital/Own capital x 100	1.11
   Degree of indebtedness	Borrowed capital/capital employed x 100	1.09
   Trade Receivables turnover	Average Trade Receivable balance/Revenue x 270	143.67
   Non-current assets turnover	Revenue/Non-current assets	0.16

   Source: Hidroelectrica

   ‌2. Net Debt/ (Cash) Adjusted
   RON million	31 March 2026
   Bank borrowings	190
   Lease liabilities	70
   Cash and cash equivalents	(1,616)
   Short-term Investments (investments in corporate bonds and deposits)	(4,989)
   Adjusted Net Debt/(Cash)	(6,345)
   Adjusted EBITDA	1,707
   Adjusted Net Debt/(Cash) to Adjusted EBITDA Ratio	(3.72)

   Source: Hidroelectrica

   ‌3. Breakdown of revenue
   		3M 26	3M 25	Change (%)
   Generation Energy Sold (Net)	GWh	3,608	2,654	36%
   External Acquisitions	GWh	357	196	82%
   Total Energy Sale	GWh	3,966	2,841	40%
   Wholesale Energy Sold	GWh	1,710	1,131	51%
   Wholesale Revenue	RON million	1,106	599	85%
   Quantity of electricity-Supply	GWh	2,134	1,604	33%
   Supply Revenue related to active energy	RON million	1,127	655	72%
   Transferred costs (pass trough)	RON million	707	467	51%
   Quantity of electricity - Balancing	GWh	84	55	52%
   Balancing Revenue	RON million	97	86	13%
   System Services (STS) Revenue	RON million	71	41	73%
   Other revenues from customer contracts, out of which:	RON million	21	20	5%
   Positive imbalances revenue*	RON million	1	(4)	-125%
   Power reduction services revenue	RON million	38	51	-25%
   Redistribution of additional revenues	RON million	10	7	43%
   Revenue	RON million	3,129	1,868	68%

   * The quantity of positive imbalances recorded in the nine-month period ended 31 March 2026 is 38 GWh (three-month period ended 31 March 2025: 51 GWh)

   Source: Hidroelectrica

   Energy Produced and Sold (Net)

   In the first quarter of 2026, a significant increase in net electricity production was recorded, rising by approximately 36% compared to the same period of the previous year, reaching a total of 3,608 GWh. The Danube flow reached a normal level of approximately 6,900 m³/s, above the level recorded in the first months of 2025.

   Given that this level of hydrological inflows was recorded over a limited period of time, the rapid commercialization of the additional energy output became necessary, with volumes being directed predominantly towards the wholesale market. As a result, quantities sold on this segment increased by 51% compared to Q1 2025.

   Wholesale market revenues

   Revenues from the wholesale market in the January-March 2026 period increased by 85% compared to the first quarter of the previous year. This growth was driven by several factors, including the increase in volumes sold. The commercial strategy adopted aimed to maximize the value generated for each MWh produced, leveraging the flexibility of the hydropower units to enhance revenues from the wholesale segment. The additional energy volumes generated by the favorable hydrological conditions were therefore efficiently traded, contributing significantly to the Company's financial results in the first quarter of 2026.

   ‌Revenues from Supply

   Supply revenues increased by 72% to RON 1,127 million in the first three months of 2026, from RON 655 million in the same period of 2025. This development reflects both the optimization of the supply portfolio structure and commercial strategy, as well as the growth in the customer base and the quantity of electricity sold.

   In order to remain competitive in an environment characterized by increased pressure on commercial margins and heightened consumer mobility, the Company continuously adjusted the structure of its commercial offers, aiming both to maintain the attractiveness of its products and to strengthen the loyalty of the existing customer portfolio.

   Balancing revenues

   Balancing revenues increased by 13%, to RON 97 million recorded in the first three months of 2026, from RON 86 million recorded in the same period of 2025. The increase was driven by a 53% rise in energy volumes, partially offset by a 26% decrease in the selling price in the first three months of 2026 compared to the same period of 2025.

   System services revenues

   Revenues from system services increased by 73%, to RON 71 million recorded in the first three months of 2026, from RON 41 million recorded in the same period of 2025.

   Other revenues from contracts with customers

   Other revenues from contracts with customers increased by 5%, to RON 21 million in the first three months of 2026, from RON 20 million in the same period of 2025. The evolution of these revenues was influenced by the behavior of other participants in the electricity market regarding imbalance management. At the same time, power reduction services recorded in the generation segment increased by RON 3 million compared to the same period of 2025.

   4. Operating Expenses
   	3M 2026	3M 2025	Change
   Costs breakdown	RON million	RON million	%
   Turbinated water	134	99	35%
   Employee benefits expenses	237	220	8%
   Transport and distribution of electricity	587	382	54%
   Electricity purchased	209	95	119%
   Green certificates expenses	130	83	56%
   Depreciation and amortization	220	220	0%
   Impairment loss on trade receivables, net	49	31	57%
   Repair, maintenance, materials and consumables	22	23	-6%
   Tax for electricity producers	0	16	-100%
   Other operating expenses	87	75	16%

   Source: Hidroelectrica

   Turbinated water

   Water usage expenses increased by 35%, to RON 134 million in the three-month period ended 31 March 2026, from RON 99 million in the same period of 2025. This increase was driven by the higher volume of electricity generated in the first three months of 2026 compared to the same period of 2025, following the improvement in hydrological conditions compared to the same period of the previous year.

   Employee benefits

   Employee benefits expenses increased by 8%, to RON 237 million in the three-month period ended 31 March 2026, from RON 220 million in the same period of 2025. This increase was mainly driven by salary increases resulting from negotiations with the employees' union, applicable starting from May 2025.

   Electricity transmission and distribution

   Electricity transmission and distribution expenses increased by 54%, to RON 587 million in the three-month period ended 31 March 2026, from RON 382 million in the three-month period ended 31 March 2025. This increase was primarily driven by a 33% increase in the volume of electricity supplied, as well as by an average 3% increase in distribution tariffs starting from 1 January 2026.

   Purchased electricity

   Purchased electricity expenses increased by 119% in the three-month period ended 31 March 2026, to RON 209 million, from RON 95 million in the same period of 2025. This evolution was mainly driven by the increase in the volume of electricity required for the supply segment, following the growth in the number of customers.

   Green certificates expenses

   Green certificates expenses increased by 56%, to RON 130 million in the three-month period ended 31 March 2026, from RON 83 million in the three-month period ended 31 March 2025. This increase was

   mainly caused by the higher volume of electricity supplied in Q1 2026 compared to the same period of the previous year.

   Tax for electricity producers

   The tax for electricity producers was repealed starting from 1 July 2025; consequently, this expense amounted to zero in the first quarter of 2026.

   Other operating expenses

   Other operating expenses increased by 16%, to RON 87 million in the three-month period ended 31 March 2026, from RON 75 million in the three-month period ended 31 March 2025. This increase mainly reflects the impact of higher taxes and professional services expenses.

   ‌5. Investment activity
   	3M 26	3M 25	Change
   	RON million	RON million	%
   Development Project CAPEX	12,4	11.8	5%
   Refurbishment CAPEX	39	22	74%
   Maintenance CAPEX	29	14	107%
   Standalone equipment and machinery	10	4	129%
   TOTAL INVESTMENTS	90	52	72%
   Source: Hidroelectrica

   The investments presented above are financed from own sources.

   The pace of investment execution is significantly influenced by factors external to the Company, mainly procedural, administrative, and legislative in nature, which do not reflect Hidroelectrica's operational capabilities, but rather the regulatory environment and the complexity of the strategic projects currently under implementation.

   Investments in development, refurbishment, and modernization projects continue to face delays, suspensions, or even the discontinuation of certain works, largely caused by constraints and conditions beyond the control of project managers or contract administrators, such as:

   • Delays in obtaining environmental permits for several major projects (e.g. Pașcani HPP, Surduc-Siriu HPP, Cornetu Avrig HPP, Cerna-Motru-Tismana Stage II), requiring rescheduling and timeline adjustments;

   • Suspension or cancellation of environmental permits issued by the Ministry of Environment,

     Waters and Forests (e.g. Răstolița HPP, Bumbești-Livezeni HPP);

   • Unfavorable outcomes in ongoing litigation cases and the suspension of works through court injunctions, situations currently subject to legal proceedings;

   • Extended procurement procedures caused by additional ex-ante verification stages carried out by the National Agency for Public Procurement (A.N.A.P.), which delayed contract signing but support compliant and transparent execution over the medium term;

   • Procurement procedures cancelled due to the lack of bidders, bids exceeding the value allocated through the approved general budget, or offers failing to meet the required commissioning deadlines;

   • Procurement challenges filed by bidders (e.g. Tudor Vladimirescu Floating PV Plant, Battery Energy Storage System at Iron Gates II HPP), leading to delays in the award of works contracts;

   • Delayed resolution of procurement appeals, significantly exceeding standard timelines;

   • Lack of Government Decisions regarding land expropriations;

   • Overlaps with other road or railway infrastructure projects;

   • Contractors undergoing insolvency or bankruptcy proceedings, leading to the inability to execute contracts according to schedule, lack of responses to requests for quotations, and the absence of a general designer, resulting in inadequate integration of projects into the design schedule;

   • The absence of a general designer, leading to the inability to implement contracts according to schedule, as well as insufficient responses to tender requests.

     Despite these constraints, the investment plan remains robust and achievable, while the remedial measures adopted - including rescheduling, relaunching procurement procedures, updating technical documentation, and intensifying dialogue with the relevant authorities - are expected to support an acceleration of execution during 2026.

     RON million

     Monthly Progress of Development, Refurbishment and

     Modernization Projects

     21,476

     18,804

     10,935

     Jan-26

     Feb-26 Proiecte RTH

     Mar-26

     Proiecte DZV

     TOTAL Proiecte

     Source: Hidroelectrica

     Investments in Development Projects (CAPEX for Projects)

     In the first three months of 2026, investment expenditures related to development projects amounted to a total of RON 12.43 million, representing an increase of RON 0.62 million compared to the same period of the previous year.

     Investments in progress

     For 2026, Hidroelectrica has budgeted RON 202 million for the continuation of major development projects (hydropower projects). As at 31 March 2026, the status of these projects was as follows:

   • Pașcani HPP - project under implementation, with ongoing contracts progressing according to schedule, without significant constraints or conditions likely to jeopardize the project completion date;
   • Răstolița HPP - project constrained by the suspension of the environmental permit by the court until the final resolution of the litigation regarding its annulment. As a consequence of the suspension of the environmental permit, Government Decision no. 327/2025 regarding the removal of land from the forestry fund was also suspended. Works carried out by contractors continue on sites that do not require deforestation or removal from the forestry fund. Significant constraints include the insolvency of the general contractor, Hidroconstrucția S.A., and the lack of a general designer;
   • Surduc-Siriu HPP - ongoing contracts for construction works and equipment related to the Surduc Dam, pressure node, and adduction system. During the Technical Analysis Committee (CAT) meeting held on 4 March 2026, the issuance of the environmental permit for the Surduc Dam was approved. The procurement procedure for the equipment of Nehoiașu II HPP and the extension of the 110 kV substation was relaunched after being cancelled twice previously due to the lack of bids. Constraints remain dependent on the resolution of court actions initiated by the Declic Association regarding the construction continuation permit;
   • Jiu River HPP on the Livezeni-Bumbești sector - ongoing contracts for the connection to the National Energy System (SEN) of Dumitra HPP, Bumbești HPP, and Livezeni SHPP. The technical expertise for the equipment was accepted, and cadastral documentation for the expropriation corridor related to the SEN connection of Dumitra HPP and Livezeni SHPP was completed. Potential constraints that may affect the project completion deadline include ongoing litigation with the Bankwatch and Ecolegal Associations seeking the annulment/suspension of Environmental Permit no. 2/17.06.2025, as well as obtaining construction permits while the environmental permit remains challenged in court;
   • Olt Gorge HPP on the Cornetu-Avrig sector (Lotrioara-Câineni-Racovița) - ongoing SEICA, EA, and RIM services contracts, with documentation published on the Ministry of Environment, Waters and Forests website. The project is currently undergoing an update and a revised cost-benefit analysis considering the received offers and the numerous constraints and conditions, including: the impossibility of obtaining the construction permit and resuming negotiations/contracting of remaining works in the absence of the environmental permit and expropriation Government Decision; overlap with the A1 Motorway project (Lotrioara and Câineni); railway bridges downstream of the Racovița HPP tailrace canal condition the completion of works on the second section of the tailrace canal. Regarding the SEN connection (Lotrioara and Câineni), evacuation constraints on the Olt Valley Gorge section result in highly costly grid connection and full-capacity evacuation solutions, which remain entirely the responsibility of Hidroelectrica;
   • Cerna-Belareca HPP - the urban planning certificate was extended until February 2027. The environmental permit and water management approval were issued in 2025. Ongoing activities include obtaining the construction permit, securing the SEN connection, acquiring land rights, and procurement procedures for construction and installation works (non-binding requests for quotations);
   • Bistra-Poiana Mărului HPP - project under implementation, with remaining works related to the Ruieni and Râul Alb sections. Ongoing activities include the tender procedure for cadastral

     documentation required for expropriation (the issuance of the Urban Planning Certificate is conditional upon the completion of expropriations).

     In April 2026, the contract for the expropriation documentation was signed;

   • Cerna-Motru-Tismana Hydrotechnical and Energy Complex - Stage II - Environmental Permit no. 2/09.03.2026 was obtained. The Design Department of SPEEH Hidroelectrica S.A. prepared the Feasibility Study "Update of the technical and economic indicators of the Cerna-Motru-Tismana Hydrotechnical and Energy Complex - Stage II investment objective", which received a favorable opinion within the Technical and Economic Committee of Hidroelectrica through Opinion no. 22/2026;
   • Vânători HPP - ongoing contract progressing according to schedule;
   • Rehabilitation of monitoring and control equipment at the Cerna, Tg Jiu, and Vădeni dams -

     ongoing contract progressing according to schedule.

     New investments

     For 2026, Hidroelectrica has budgeted RON 165 million for investments in photovoltaic energy and energy storage projects, continuing the structural transformation of its generation portfolio towards complementary green energy technologies and increased resilience against hydrological variability driven by global warming.

     These projects mark another stage in Hidroelectrica's transition from a business model predominantly based on hydropower generation towards an expanded portfolio incorporating new green energy technologies, designed to be hybrid, flexible, and adaptable. This approach addresses both the objective of technological diversification and the need to mitigate systemic risks, particularly hydrological risk.

   • Tudor Vladimirescu PV Plant (installed capacity: 45.94 MW, estimated annual output: 59.21 GWh/year) - the procurement procedure for the turnkey works contract is ongoing, with the procedure currently challenged before the National Council for Solving Complaints (CNSC). The grid connection contract is under implementation. Steps are ongoing to obtain the Construction Permit for the investment project.
   • Țara Hațegului Photovoltaic Park - Hunedoara County (installed capacity: 8.9 MW, estimated annual output: 11.83 GWh/year) - the design and execution contract is under implementation. Construction Permit no. 5/19.03.2026 was obtained, valid for 24 months. Decision no. 10/13.03.2026 regarding the removal of the land from agricultural use was obtained from the Hunedoara County Directorate for Agriculture. The notice to proceed for the design services contract no. 1/2026 was issued under registration no. 330/27.02.2026. The DTAC and DTOE documentation was accepted through Acceptance Report no. 28554/20.03.2026. Legal fees payable to the State Construction Inspectorate (ISC), amounting to 0.1% and half of the 0.5% quota calculated on the construction and installation value from the General Estimate, were paid. Notifications regarding the commencement of works were submitted to the Bretea Română Municipality (letter no. 639/31.03.2026) and ISC Hunedoara (letter no. 137559/31.03.2026). The process of obtaining the ANRE Establishment Authorization is ongoing.
   • Floating photovoltaic panels system - "Nufărul" pilot project (installed capacity: 10 MWp,

     estimated annual output: 13.48 GWh/year) - the turnkey contract for the floating photovoltaic

     system is under implementation, with the notice to proceed for execution works issued in March 2026. The Safe Operation Approval CONSIB 164/23.02.2026 was obtained. Ongoing activities include site organization works, obtaining the ANRE Establishment Authorization, environmental monitoring services, preparatory works, and related activities.

   • Capitalization of photovoltaic potential within electricity generation plants located on the middle and lower Olt River sector - ROOFTOP project (620 W photovoltaic panels, 100 kW inverters, and energy optimization solutions; installed capacity: 2,955.58 kW; estimated annual output: 3,710.87 MWh/year) - the Technical Project was approved in December 2025, the notice to proceed for execution works was issued on 9 February 2026, and works are currently ongoing.
   • Battery Energy Storage System at Iron Gates II HPP (storage capacity of 256 MWh) - currently under procurement procedure; the duration of the procurement process has been extended due to additional ex-ante verification stages carried out by A.N.A.P. and as a result of a complaint admitted by CNSC.
   • Li-ion storage installation within the Crucea NORD Wind Farm (nominal storage capacity of 72 MWh) - turnkey contract under implementation, with a completion deadline of 23 March 2027.
   • Polder Zervești Photovoltaic Park - project approved in December 2025; Urban Planning Certificate no. 7/12.03.2026 was obtained from the Turnu-Ruieni Municipality. The technical and economic documentation is currently under preparation.

     In addition to the projects already under implementation, Hidroelectrica aims to expand its investment portfolio in complementary green energy technologies and currently has under analysis/approval several pre-investment projects, such as:

   • Floating photovoltaic panels system within the Lower Olt hydropower plants - update and optimization with BESS storage systems - installed PV capacity for the entire development: 100 MWp, estimated annual output: 124.7 GWh/year; nominal installed power/energy storage capacity for the entire development: 200 MW / 800 MWh. The Design Department of SPEEH Hidroelectrica S.A. prepared the Feasibility Study "Floating photovoltaic panels system within the Lower Olt hydropower plants - update and optimization with BESS storage systems", which received a favorable opinion from the Technical and Economic Committee of Hidroelectrica through Opinion no. 16/2026. A substantiation note was prepared for the Management Board regarding the approval of the investment title;
   • Storage installation at Retezat HPP - installed capacity of 90 MW and a storage capacity of 360 MWh. The Design Department of SPEEH Hidroelectrica S.A. prepared the Feasibility Study "Battery Energy Storage System at Retezat HPP", which received a favorable opinion from the Technical and Economic Committee of Hidroelectrica through Opinion no. 28/2026. A substantiation note was prepared for the Management Board regarding the approval of the investment title;
   • Storage installation at Ruieni HPP - installed capacity of 50 MW and a storage capacity of 200 MWh. The Design Department of SPEEH Hidroelectrica S.A. prepared the Feasibility Study "Battery Energy Storage System at Ruieni HPP", which received a favorable opinion from the Technical and Economic Committee of Hidroelectrica through Opinion no. 32/2026. A substantiation note was prepared for the Management Board regarding the approval of the investment title;
   • BESS Tudor Vladimirescu - installed capacity of 30 MW and a storage capacity of 120 MWh. The project is currently in the pre-investment phase. Opportunities for the implementation of battery

     storage systems were analyzed based on the existing grid connection architecture to the National Energy System (SEN), the availability of sites owned by Hidroelectrica suitable for implementation, and the possibility of operating the systems using existing personnel, with the objective of optimizing implementation-related costs.

     The integration of storage systems and solar energy sources into the existing infrastructure strengthens Hidroelectrica's position both as a supplier of 100% green energy and as an operator capable of ensuring the continuity and security of electricity supply, as well as the safe and stable operation of the National Energy System, regardless of natural conditions or market volatility.

     Investments in Refurbishment Projects (CAPEX for Refurbishment)

     The refurbishment activity, in line with Hidroelectrica's Investment Strategy, aims to implement the program for the promotion and execution of modernization and refurbishment projects related to hydropower assets. This activity materializes through the preparation and advancement of refurbishment and modernization projects for power plants, hydro units, associated installations and substations, as well as through the continuation of projects already under implementation, currently at various investment stages (procurement, design, execution, acceptance, monitoring during the warranty period, etc.).

     The budget proposed by Hidroelectrica for refurbishment and modernization projects in 2026 amounts to RON 655 million, of which RON 475 million is allocated to refurbishment projects and RON 180 million to modernization projects.

     As at 31 March 2026, investments in refurbishment and modernization projects totaled RON 39 million, representing an increase of 74% compared to the same period of the previous year. The summary status of refurbishment and modernization projects is presented below:

     Refurbishment projects

     The budget proposed for 2026, amounting to a total of RON 475 million, is mainly allocated to the following objectives:

   • Stejaru HPP Refurbishment

     The refurbishment works related to the "Stejaru HPP Refurbishment" project were divided (from

     both a technical and contractual perspective) into four investment components:

     • Component I: Butterfly Valve House - contract under implementation;

     • Component II: Powerhouse, consisting of: Hydro Unit (HU) 5 - completed and commissioned in 2024; HU 1÷4 - contract under implementation with Hidroserv, with a completion deadline of 10 April 2031; the joint control acceptance related to the powerhouse was completed in January 2026; Pressure node - contract under implementation with Electromontaj, with a completion deadline of 30 May 2028;

     • Component III: 110 kV Substation - contract under implementation for the remaining works to be executed (110 kV cells T1÷T4);

     • Component IV: 220 kV Substation - initiation of the final acceptance procedure.

   • Vidraru HPP Refurbishment - contract under implementation with Electromontaj and Končar, with a completion deadline of 28 December 2031; environmental monitoring activities are ongoing under contract, as well as consultancy and technical assistance services;
   • Râul Mare Retezat HPP Refurbishment - procurement procedure currently ongoing;
   • Refurbishment of the Petrimanu, Lotru Aval and Jidoaia pumping stations - contract under implementation;
   • Rehabilitation works for the Romanian lock within the Iron Gates I Hydropower and Navigation System (SHEN Porțile de Fier I) - ongoing works aimed at maintaining and optimizing navigation infrastructure; Segment gate valve: contract completed, currently under warranty period; Flat gate valve: contract completed, currently under warranty period; Busked gate collars at the downstream end of the lock: contract signed in February 2026 with DSD NOELL GmbH, with a completion deadline of 9 July 2027.

     In addition to the refurbishment projects presented above and currently under implementation, the following projects have also been approved and are at various stages of implementation:

   • Mărișelu HPP Refurbishment - reanalysis of technical refurbishment solutions for the update of the Feasibility Study, aimed at optimizing the technical solution. Tender specifications and documentation for the market research procedure are currently under preparation;
   • Râul Mare Retezat HPP Refurbishment - open tender procedure ongoing, currently at the bid evaluation stage. A single bid was submitted by the consortium formed by COBRA and ANDRITZ;
   • Brădișor HPP Refurbishment - the Feasibility Study Memorandum was updated and approved within the Technical and Economic Committee, in view of the reapproval of the technical and economic indicators.

     Modernization projects

     The proposed budget for 2026, totaling RON 180 million, is mainly allocated to the following objectives:

   • Vaduri HPP Modernization: HU no. 2, the 110 kV substation, and the mechanical and electrical equipment of the power plant and dam - contract under implementation with Hidroserv and UCMH, with a completion deadline of 1 May 2027;
   • Modernization works at HU2 of Remeți HPP, including the 110 kV substation, the general installations related to the power plant, the pressure node, and the Drăgan Dam - contract under implementation with Hidroserv and UCMH, with a completion deadline of 31 December 2027;
   • Modernization of HU2 at Arcești HPP and replacement of the automation and monitoring system related to auxiliary services for HU1 - contract under implementation with UCMH and Hidroserv, with a completion deadline of 31 December 2026;
   • Modernization of the 110 kV, 20 kV, and 6.3 kV electrical substations at Tg Jiu HPP and Vădeni HPP - contract completed; commissioning report signed on 16 January 2026;
   • Modernization works for the electrical installations related to the hydromechanical equipment and the hydraulic actuation system of the Gogoșu spillway dam - contract under implementation with DSD NOELL GmbH, with a completion deadline of 25 July 2026;
   • Modernization of the VIR actuation system at Iron Gates I HPP - contract under implementation with Hidroserv, with a completion deadline of 31 January 2027;
   • SCADA modernization for the Olt Hydropower Branch (DHE Olt) - contract under implementation with the consortium formed by Enevo Group and Eximprod Engineering, with a completion deadline of 31 July 2027.

     In addition to the modernization projects presented above and currently under implementation, the following projects have also been approved and are at various stages of the procurement procedures:

   • Assembly and commissioning of HU1 and its auxiliary installations within the Iron Gates II Hydropower Development (U.H.E. PF II) - procurement procedure relaunched and currently ongoing;
   • Modernization of electrical substations at: 110 kV Golești HPP, Merișani HPP, Băiculești HPP, as well as 6.3 kV and 110 kV Budeasa HPP - procurement procedure cancelled due to the absence of submitted bids;
   • Modernization of the electrical substation at Gilău I HPP - procurement procedure cancelled due to the absence of submitted bids;
   • Modernization of automation, protection, general services, and security installations for the Upper Olt hydropower plants - procurement procedure currently ongoing.

   Maintenance Investments (CAPEX for Maintenance)

   In the first three months of 2026, investments in capitalized maintenance related to hydropower constructions, equipment, and administrative buildings amounted to a total of RON 29 million, representing an increase of over 100% compared to the RON 14 million recorded in the same period of 2025.

   Maintenance works with capitalization - hydro-technical constructions

   In the first three months of 2026, works amounting to a total of RON 2.6 million were carried out at sites within the Bistrița, Cluj, Curtea de Argeș, Hațeg, and Iron Gates branches.

   Construction intervention works are complex in nature and fall entirely under the provisions of Law no. 10/1995 regarding quality in construction, requiring the preparation of technical expert assessments and technical designs, the obtaining of permits and authorizations, as well as the execution of works by certified construction companie.

   Maintenance works with capitalization - equipment

   In the first three months of 2026, equipment maintenance works (CAPEX) amounting to a total of RON 26 million were carried out at sites within seven Hidroelectrica branches.

   The Maintenance and Hydrotechnical Constructions Department manages the investment project "Structural rehabilitation (metal structure, mechanical parts, sealing systems and embedded parts), related installations (gate body heating, guide heating and lubrication systems), anticorrosion protection for the double-hook gates of the Iron Gates I spillway dam", with a contractual completion deadline in 2031. For 2026, a budget of RON 28.6 million has been proposed. The project is currently progressing according to the agreed execution schedule.

   Maintenance works with capitalization - rehabilitation of administrative buildings with capitalization

   For 2026, rehabilitation works for administrative buildings (CAPEX) amounting to a total estimated value of RON 13.6 million are planned. As at 31 March 2026, requests were ongoing towards the Design Department for the preparation of technical and economic documentation related to intervention works for administrative headquarters, warehouses, and intervention buildings.

   1. Cashflow

      	3M 2026	3M 2025	Change
      	RON million	RON million	%
      Net cash from operating activities	1,689	984	70%
      Net cash from investing activity	(1,235)	(1 ,833)	-33%
      Net cash used in financing activities	(26)	(27)	-4%
      Net increase/(decrease) in cash and cash equivalents	428	(876)	146%
      Cash and cash equivalents at 1 January	1,188	1 ,582	-25%
      Cash and cash equivalents at 31 March	1,616	705	126%
      Source: Hidroelectrica Net cash from operating activities

      Net cash generated from operating activities amounted to RON 1,689 million in the three-month period ended 31 March 2026, compared to RON 984 million in the three-month period ended 31 March 2025. This increase mainly reflects the higher cash generated from operating activities as a result of increased sales achieved under strong profitability conditions.

      Net cash from investing activity

      Net cash used in investing activities amounted to RON (1,235) million in the three-month period ended 31 March 2026, compared to RON (1,833) million in the three-month period ended 31 March 2025. This decrease mainly reflects the increase in net cash flows generated from investment-related deposits, correlated with the maturities of previously established deposits.

      Net cash used in financing activities

      Net cash used in financing activities amounted to RON (26) million in the three-month period ended 31 March 2026, compared to net cash used in financing activities of RON (27) million in the three-month period ended 31 March 2025.

   2. ‌Financial position

   31 March 31 December Change %

   RON million 2026 unaudited 2025 audited

   Assets
   Non-current assets Property, plant and equipment	19,305		19,429		-1%
   Intangible assets	35		36		-3%
   Restricted cash	3		23		-87%
   Other non-current assets	371		374		-1%
   Total non-current assets	19,713		19.863		-1%
   Current assets Inventories	134		124		8%
   Trade receivables	1,632		1,698		-3%
   Investments in deposits	4,989		3,732		34%
   Cash and cash equivalents	1,616		1,188		34%
   Restricted cash	50		32		56%
   Other current assets	226		65		248%
   Total current assets	8,647		6,839		26%
   Total assets	28,361		26,702		6%
   Equity and liabilities Equity Share capital	5,527		5,527		0%
   Revaluation reserve	10,975		11,084		-1%
   Other reserves	1,030		1,030		0%
   Retained earnings	5,956		4,539		31%
   Total equity	23,487		22,810		6%
   Liabilities Non-current liabilities Bank borrowings	118		118		0%
   Lease liabilities	60		62		-3%
   Current tax liabilities	189		192		-2%
   Deferred income	8		8		0%
   Deferred tax liabilities	1,381		1,397		-1%
   Employee benefits	141		140		1%
   Provisions	1,020		1,009		1%
   Trade payables	9		15		-40%
   Other payables	48		58		-17%
   Total non-current liabilities	2,974		2,999		-1%
   Current liabilities
   Bank borrowings	71		95		-25%
   Lease liabilities	10		10		0%
   Trade payables	796		777		2%
   Contract liabilities	51		48		6%
   Current tax liabilities	449		181		148%
   Deferred income	6		6		0%
   Employee benefits	140		156		-10%

   31 March 31 December Change %

   RON million 2026 unaudited 2025 audited

   Provisions	103		104		-1%
   Other payables	274		146		88%
   Total current liabilities	1,899		1,523		25%
   Total liabilities	4,874		4,522		8%
   Total equity and liabilities	28,361		26,702		6%

   Source: Hidroelectrica

   Trade receivables

   The balance of trade receivables remained relatively stable, amounting to RON 1,632 million as at 31 March 2026, compared to RON 1,698 million as at 31 December 2025, showing a slight decrease despite the growth of the supply portfolio.

   Investments in deposits

   The balance of investments in deposits increased by 34%, reaching RON 4,989 million as at 31 March 2026, compared to RON 3,732 million as at 31 December 2025. This increase was mainly driven by the higher cash availability generated from operating activities and the increased profitability of operating activities.

   Other current assets

   Other current assets outstanding as at 31 March 2026 increased by 248%, to RON 226 million, from RON 65 million as at 31 December 2025. This increase was mainly driven by advance payments made for the purchase of electricity, as well as for local taxes and duties related to the 2026 financial year, including the special construction tax.

   Current income tax liabilities

   The balance of current income tax liabilities increased by 148%, reaching RON 449 million as at 31 March 2026, compared to RON 181 million as at 31 December 2025. The increase recorded as at 31 March 2026 represents the income tax related to the first quarter of 2026, accumulated together with the liability recorded as at 31 December 2025, which is due in June 2026.

   Employee benefits

   Short-term employee benefits outstanding as at 31 March 2026 decreased by 10%, to RON 140 million, from RON 156 million as at 31 December 2025. This decrease was mainly driven by the payment, in January 2026, of obligations related to the salary rights for December 2025, including contributions related to additional employee benefits granted under the collective labor agreement.

   Provisions

   The balance of long-term provisions increased by 1%, to RON 1,020 million as at 31 March 2026, from RON 1,009 million as at 31 December 2025. This increase was mainly caused by the update of decommissioning provisions during 2026.

   Other current liabilities

   The balance of other current liabilities increased by 88%, to RON 274 million as at 31 March 2026, compared to RON 146 million as at 31 December 2025. This increase mainly reflects a higher level of VAT payable, driven by the invoicing of larger volumes compared to December 2025 - particularly in the supply activity - as well as the recognition of the liability related to the special construction tax due in the following quarter.

5. ‌Risk Management

   Strategic Risk Management at Company Level

   Hidroelectrica plays an essential role within Romania's energy system, being the leading electricity producer and a key provider of technological services for the National Energy System. By the nature of its activity, the Company is exposed to complex risks, and their effective management represents a strategic priority. The Management Board continuously monitors the risk management system, assessing long-term sustainability and medium-term liquidity.

   On 6 February 2026, Hidroelectrica submitted to the Ministry of Energy the proposed Memoranda for Hidroelectrica and its subsidiaries, respectively Hidroserv and UCMH, pursuant to GEO 89/2025, requesting exemptions in order to fill the vacant positions existing at the end of 2025, necessary for maintaining the safe operation of hydropower assets and continuing strategic investments for the national energy system, as well as for increasing the number of employees compared to the workforce level recorded at the end of 2025, in order to ensure the resources required for the proper conduct of the electricity supply activity.

   As of the date of this report, the submitted Memoranda have not been approved.

   Failure to implement the proposed measures due to the non-approval of the Memorandum generates a significant operational and strategic risk consisting in the understaffing at Group level required for operational and commercial activities, with a direct impact on the implementation of maintenance and investment programs, operational efficiency and the Company's ability to adequately manage the accelerated expansion of the electricity supply activity. At the same time, maintaining the personnel deficit may affect compliance with execution deadlines, equipment availability and the sustainability of operational performance over the long term.

   Climate Risks and Infrastructure Adaptation

   The increasing frequency of extreme weather events highlights the impact of climate change on economic activities. Hidroelectrica implements proactive measures, including programs aimed at reducing the risks associated with water shortages and floods, strengthening dam safety, investing in new generation capacities, and modernizing critical infrastructure. The integration of climate-related considerations into decision-making processes is essential for maintaining operational resilience.

   Sustainability of Production Assets

   Hydropower developments play a key role in the country's energy security. Hidroelectrica continues

   to invest in their modernization and refurbishment, aiming to extend asset lifetime, improve efficiency,

   and implement modern remote-control solutions (SCADA). The strategy also targets the development of new projects, alongside ensuring the maintenance of the existing infrastructure.

   Exposure to Energy Price Volatility

   Fluctuations in energy market prices influence the Company's revenues and margins. Hidroelectrica applies price risk mitigation measures, including forward contracts, production optimization based on hydrological conditions, and operational cost control.

   Cybersecurity

   In the context of accelerated digitalization and geopolitical risks, the Company has strengthened its cybersecurity defense systems through technical solutions, dedicated procedures, and continuous staff training. Cyber threats are managed through a multi-layered approach focused on prevention and rapid response.

   Regulatory and Energy Policy Risks

   Hidroelectrica is exposed to legislative changes and decisions by public authorities, which may significantly affect operational activity and financial results. The Company maintains an ongoing dialogue with relevant authorities, aiming to rapidly adapt to changes in national and European regulatory policies.

   Environmental Compliance

   The Company operates under strict environmental protection and water management regulations. Activities are carried out in compliance with environmental permits, while the development of new capacities involves complex assessment procedures, particularly in the vicinity of protected natural areas. Continuous dialogue with environmental authorities supports compliance and the mitigation of related risks.

   Health, Safety, and Environment (HSE)

   The Company continues to operate responsibly, targeting zero accidents and compliance with all legal requirements. Hidroelectrica continuously monitors HSE risks, conducts training sessions, and promotes an organizational culture based on safety, responsibility, and sustainability.

   Credit risk is presented in the Notes to the Financial Statements attached to this report.

6. ‌Subsequent Events

GMS Meetings

On 26 March 2026, the Hidroelectrica Management Board convened the Annual Ordinary General Meeting of Shareholders (OGMS) for 28 April 2026, with the main items on the agenda presented in the Key Events section.

During the OGMS held on 28 April 2026, all items on the agenda were approved by the Company's

shareholders, with the majority of votes held.

On 27 April 2026, the Management Board of Hidroelectrica convened the OGMS for 29 May 2026, with the following main items on the agenda:

• Approval of the 2026 Revenue and Expenditure Budget of S.P.E.E.H. Hidroelectrica S.A. It should be noted that the proposal for the approval of the 2026 Revenue and Expenditure Budget within the OGMS scheduled for 29 May 2026 resulted from the delay in the adoption of the State Budget Law for 2026.

• Approval of the distribution, in the form of dividends, of the amount of RON 1,000,000,000 from retained earnings (special dividend), representing surplus realized from revaluation reserves, respectively approval of a gross dividend per share amounting to RON 2.223197.

• Approval of 9 September 2026 as the Record Date, 8 September 2026 as the Ex Date, and 30 September 2026 as the Payment Date.

  On 11 May 2026, a request submitted by the Ministry of Energy on behalf of the Romanian State, in its capacity as shareholder, was received regarding the inclusion of the following items on the agenda of the OGMS scheduled for 29 May 2026:

• Acknowledgment of the existence of a suspension situation regarding mandate agreement no. 36089/29.03.2023 concluded with Mr. Silviu Răzvan Avram, pursuant to Article 40 of the agreement, in the absence of notification by the mandatary;

• Approval of the form and content of Addendum no. 5 to the mandate agreement concluded with Mr. Silviu Răzvan Avram, member of the Supervisory Board, in the form proposed by the Ministry of Energy;

• Approval of the mandate granted to the representative of the Romanian State shareholder through the Ministry of Energy within the Ordinary General Meeting of Shareholders of S.P.E.E.H. Hidroelectrica S.A. to sign Addendum no. 5 to the mandate agreement with the Supervisory Board member.

  The supplemented convening notice will be published on 15 May 2026. Publication of preliminary key operational indicators

• On 29 April 2026, Hidroelectrica published the preliminary key operational indicators for Q1 2026.

Hidroelectrica's Management Board

‌Management Statement

Based on the information available, we confirm that the Condensed Interim Consolidated Financial Statements prepared for the three month period ended 31 March 2026, in accordance with International Accounting Standard IAS 34 - Interim Financial Reporting as adopted by the European Union, as well as the Consolidated Management Board Report for the first quarter of 2026, prepared in accordance with the provisions of Law no. 24/2017 on issuers of financial instruments and market operations, as republished, and ASF Regulation no. 5/2018, provide a true and fair view of the assets, liabilities, financial position and profit and loss of the Hidroelectrica Group, and present accurate and complete information regarding the Group's performance, as available at the date of this report.

Hidroelectrica's Management Board

‌Glossary of terms and definitions

Hidroelectrica SOCIETATEA DE PRODUCERE A ENERGIEI ELECTRICE IN HIDROCENTRALE

"HIDROELECTRICA" S.A.

• EBITDA is defined as profit/(loss) before tax before (i) depreciation and amortization of property, plant and equipment and intangible assets and (ii) interest income and interest expense,
• EBITDA Margin is defined as EBITDA divided by revenue,
• Adjusted EBITDA is defined as EBITDA adjusted for (a) impairment/reversal of impairment of property, plant and equipment and (b) gain on bargain purchase of subsidiaries,
• Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue,
• Adjusted Net Debt/(Cash) is defined as bank loans and liabilities related to leasing contracts minus cash and cash equivalents and short-term investments (investments in deposits and government bonds),
• Adjusted Net Debt/(Cash) to Adjusted EBITDA Ratio is defined as Adjusted Net Debt/(Cash) divided by Adjusted EBITDA

‌Consolidated Interim Financial Statements

S.P.E.E.H. HIDROELECTRICA S.A.

Two-tier system Company

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

for the three month period ended 31 March 2026

Prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union

CONTENTS: PAGE:

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 March 2026 1-2

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

for the three month period ended 31 March 2026 3

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the three month 4

period ended 31 March 2026

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS for the three month period ended 31 March 2026

5-6

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS as at and for the

three month period ended 31 March 2026

7-27

BASIS OF PREPARATION

1. REPORTING ENTITY AND GENERAL INFORMATION

2. BASIS OF ACCOUNTING

3. USE OF JUDGEMENTS AND ESTIMATES

4. CHANGE IN ACCOUNTING POLICY

   PERFORMANCE

5. OPERATING SEGMENTS

6. REVENUE

7. OTHER INCOME

8. OPERATING EXPENSES

9. FINANCE RESULT

10. EARNING PER SHARE

    INCOME TAXES

11. INCOME TAX

    ASSETS

12. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

13. INVESTMENTS IN DEPOSITS

14. TRADE RECEIVABLES

15. OTHER ASSETS

    EQUITY AND LIABILITIES

16. EQUITY

17. OTHER PAYABLES

    FINANCIAL INSTRUMENTS

18. FINANCIAL INSTRUMENTS - Fair values and risk management

    OTHER INFORMATION

19. COMMITMENTS

20. CONTINGENCIES

21. RELATED PARTIES

Note

31 March 2026 (unaudited)

31 December 2025 (audited)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

Bogdan-Nicolae BADEA Radu Ioan CONSTANTIN Ianăș RĂDOI

Chairman of the Management Board

Member of the Management Board

Member of the Management Board

Petronel CHIRIAC Marian FETIȚA

Finance Director Accounting manager

Three month period ended

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

Bogdan-Nicolae BADEA Radu Ioan CONSTANTIN Ianăș RĂDOI

Chairman of the Management Board

Member of the Management Board

Member of the Management Board

Petronel CHIRIAC Marian FETIȚA

Finance Director Accounting manager