Hidroelectrica SA, the largest IPO in Europe and the third in the world this year, is a test for the Bucharest Stock Exchange (BVB)

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Bucharest, Romania, July 12, 2023 – “Hidroelectrica” S.A., the main electricity producer in Romania, with a production portfolio 100% from renewable sources and one of the largest hydropower producers in Europe, announces admission to trading of its shares in the Premium category of the regulated market of the Bucharest Stock Exchange (“BVB”). Trading started at 10:00/12/07/2023, under the symbol “H2O”.
As announced on July 5, 2023, the price of the initial public offering of Fondului Proprietatea S.A., an alternative investment fund managed by Franklin Templeton International Services S.À R.L., a minority shareholder in Hidroelectrica S.A., consisting of 78,007,110 shares, was set at 104 RON per Share, which implies a market capitalization of 46.8 billion RON (9.4 billion EUR) on the date of admission to the BSE

Bogdan Badea, Executive Director of Hidroelectrica emphasized on this occasion: “We are pleased that Hidroelectrica shares are tradable on the Bucharest Stock Exchange. It is the final stage of a process that we have undertaken, a fulfillment of an intense and lasting effort, the results of which we see today.
The success of the IPO represents, on the one hand, a historic achievement for the company and, on the other hand, proof of the huge potential that the Romanian capital market has to contribute to our growth as an economy, as a country and as a nation.”

Johan Meyer, CEO of Franklin Templeton Romania and Portfolio Manager of Fondul Proprietatea, added: “The scale and resounding success of the Hidroelectrica listing is an excellent result obtained after many years of preparation, hard work and coordination, which were necessary for this transaction to become a reality. We are truly proud of the success of the Franklin Templeton team in Romania, which once again made history on the capital market in Romania. I would like to express my sincere gratitude and congratulations to all parties involved. Thank you to the team of to Hidroelectrica, which today begins its journey as a listed entity, for its commitment to the listing and we congratulate it on reaching this extraordinary milestone. I wish you much success in managing one of the jewels of the Romanian capital market.”

Franklin Templeton believes that the listing of Hidroelectrica on the Bucharest Stock Exchange will pave the way for new investment opportunities in Romania and for the further realization of shareholder value. The successful listing of Hidroelectrica is expected to boost investment in Romania and raise the country’s profile as an attractive investment destination.
The Romanian market can be considered one of the largest markets in the region, with the listing of Hidroelectrica, the capitalization of the local market exceeding 40 billion euros, said Radu Hanga, president of the Bucharest Stock Exchange (BVB), on Wednesday.

“We are here to celebrate the largest initial public offering in the history of the Bucharest Stock Exchange and the third largest worldwide this year. It is an important thing, something that puts us on the global map of stock markets capital, strengthens our position. (…) Today, the Romanian market can be considered as one of the largest markets in the region, with the listing of Hidroelectrica. The capitalization of the local market exceeded 40 billion euros and we thus became the third largest market in Central and Eastern Europe. Only Poland and Austria are in front of us at the moment. The success of this transaction has strengthened Romania’s position on the radars of international investors who are active in our region, and at the same time we expect have an impact regarding the promotion of Romania to emerging market status by Morgan Stanley Capital International,” said Radu Hanga, at the Hidroelectrica company listing event at the Bucharest Stock Exchange (BVB).
Prior to the IPO, Hidroelectrica’s shareholders were the Ministry of Energy (80.06%) and Fondul Proprietatea (19.94%). Fondul Proprietatea has held a minority stake in Hidroelectrica since its foundation in 2005.

Hidroelectrica is the largest energy producer in Romania in terms of the amount of energy produced, and an important player in the hydropower field in Europe. The group owns and operates 182 hydropower plants, five pumping stations and a wind farm that are strategically located in eight branches organized geographically on the territory of Romania. The total installed production capacity of the Company’s hydropower assets is divided into storage hydropower plants, run-of-river hydropower plants and pumping stations.
The company owns a 100% renewable generation portfolio, with an installed hydroelectric generation capacity of 6.3 GW and an installed onshore wind capacity of 108 MW in the Crucea wind farm.
Between 2018 and 2022, the Company had a market share of approximately 29%, in terms of total energy delivered to the system (according to the annual reports of the National Energy Regulatory Authority (“ANRE”)).
Hidroelectrica is one of the largest hydropower producers in Europe, with a volume of electricity generated from hydroelectric sources of 13.6 TWh in 2022, 16.9 TWh in 2021 and 15 TWh in 2020 (all quantities representing gross production) . Production in 2022 reflects less favorable hydrological conditions due to severe drought.
At the same time, Hidroelectrica supplies electricity to the wholesale and retail electricity markets in Romania. The Company’s market share in electricity supplied to retail consumers increased from 1.3% in 2020 to approximately 8% in December 2022, according to ANRE. The number of retail customers increased from 2,465 in 2020 to more than 482,000 in 2022. In 2022, the Company supplied approximately 3.7 TWh of electricity to final customers, according to ANRE.
In the years ended on December 31, 2022, 2021 and 2020, the Company generated consolidated revenues in the amount of 9,452.0 million RON, 6,489.3 million RON and 3,841.4 million RON, respectively. In the same period, the Company reported annual profits of RON 4,464.0 million, RON 3,116.1 million and RON 1,558.0 million, respectively.
In the first quarter of 2023, the Company obtained consolidated revenues of 3,272.1 million RON, which were generated by the increase in the total amount of energy sold (4.8 TWh in the first quarter of 2023) on all markets, including the wholesale, retail and of balancing This led to a total value of adjusted EBITDA of 2,184.2 million RON and a value of profit for the period of 1,723.4 million RON in the first quarter of 2023, compared to a total value of adjusted EBITDA of 1702 .7 million RON and a profit value for the period of 1,287.9 million RON in the first quarter of 2022.

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