Our commitment is to maintain the same high level of nuclear safety and reliability in operation which are guaranteed by a solid investment and maintenance program and a highly skilled staff. Interview with Cosmin Ghita, CEO Nuclearelectrica

Mr Cosmin Ghita, you have been CEO of Nuclearelectrica since September 2017. How would you evaluate these 14 months in office from the standpoint of challenges and achievements? I started my mandate at Nuclearelectrica during a period of preparation for the large investment projects of the company, during the liberalization process of the energy market but in a context of national and European support for the nuclear power. I knew I would find a highly skilled and professional team at Nuclearelectrica and I was right. My first priority was to streamline the activities of the company and to establish the main objectives to be implemented over a short period of time with impact on the long run: the refurbishment of Cernavoda NPP Unit 1, the integrated supply chain to ensure the predictable and stable operation of the nuclear fuel plant and of the units in Cernavoda, diversification of income sources and projects, an efficient human resources strategy designed to ensure retention of the highly qualified personnel and the overarching priority which is to maintain the high level of nuclear safety. As we are nearing the end of 2018, looking back at my mandate period at Nuclearelectrica, I am satisfied to see that the major initiatives are starting to take roots and I am also optimistic about the future projects and outcomes that we will deliver with direct impact on the security of our national energy system. To summarize, the major highlights of this period were: The initiation of first phase of the Cernavoda NPP Unit 1 refurbishment project, approved by the GMS. The refurbishment of Unit 1 will allow the continuous operation of the unit for an additional 30 years under the same nuclear safety conditions, with an investment evaluated at less than half the cost of a new build. The strategy to diversify the raw material supply sources by means of a gradual transition to uranium octoxide to be processed by Feldioara branch, as part of the National Uranium Company, from uranium dioxide, until 2020. The acceleration of the negotiations with the selected investor for Units 3 and 4 and the redrafting of the strategy for the continuation of the project through a clear separation of the responsibilities of the state and of SNN in this process The strategy to develop the tritium removal facility approved by the shareholders with direct positive impact on the duration and the cost of the refurbishment outage of Unit 1 The implementation of targeted human resources strategies that aim to retain within the company the highly qualified employees and to ensure new well qualified entries through a partnership with the Polytechnic Institute of Bucharest. Financial results above the levels of 2017, mostly due to market liberalization, increase of the forward segment of sales and a well balances and flexible sales strategy coupled with an increased degree of investment achievement. The upcoming period will see a continuation of these projects, a concentration of the company’s efforts, both human and financial in order to successfully implement the established objectives and a constant attention to our most valued resource: the human factor.   2018 is drawing to a close. What could you tell our readers about this year’s results? Of course, it is too early for the review of the whole year, nevertheless tell us how the financial results look after the first ten months of the year and what are the forecasts? Will the initial estimates regarding this year’s revenue be met? Due to the fact that Nuclearelectrica is a listed company on the Bucharest Stock Exchange and in compliance with the company’s financial calendar, we can only discuss about the results related to the first nine months of 2018, which were published on November 14th 2018. The evolution of the results of the company indicates a positive and ascending trend compared to the same period of the previous year. At a similar production, SNN obtained a profit of 320.996 million lei over the first 9 months, with 28,30% higher than the similar period of last year. The profit increase was generated by the EBITDA increase of 13% compared to 2017 9M, mainly due to the increase of operation income with 12% influenced by the 11% increase of the energy sale price. In the context of the full market liberalization, starting with January 1st 2018, SNN sold 18% more energy on the competitive market of bilateral contracts, where the price increased by 22% (price without Tg), while the quantity of energy sold on the spot segments of the market (DAM and IM) decreased by 27% with a decrease in price as well. The behavior of the market in the first nine months of 2018 was influenced by the sky rocketing price during the winter of 2017-2018 and the summer of 2018 which determined the energy traders to have a more prudent and long term approach, thus increasing the participation in the forward market which plays to the advantage of SNN as a long term producer. Concerning the investment program of 244.867 thousand lei for 2018, the value completion degree for the first nine months of 2018 is of 47,6% compared to 26.7% in the first nine months of 2017. The value completion percentage differs from the actual completion and is determined by savings done compared to the planned budget, if the project is completed under budget. The largest portion of the investment program is represented by long term investments (under execution).   What is the SNN’s main source of revenue? Nuclearelectrica is a baseload energy producer, which sells its entire production on the domestic energy market, completely liberalized since January 1st 2018. For the first nine months of 2018, the sales revenues was in amount of RON 1.519 million compared to 1.366 million in the first nine months of 2017. SNN’s PNL is also affected by the evolution of the foreign currency exchange rate. The impact for the first nine months of 2018 was a financial income of RON 65 million, compared to a loss...

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