S.N. Nuclearelectrica S.A. ($SNN)

During the presentation or afterwards. Thank you. Daniel, please.

Hello, everybody. So we are going through unaudited individual and consolidated financial statements for the 3-month period ended 31st of March 2026, and we will move to the 3 months 2026 financial results highlights. The net profit equals RON 887 million 72.8% higher than the same period of last year 2025 and with 5.9% or RON 49 million better than the budget -- the first quarter in the budget of 2026. The increases mainly came from sales of electricity, RON 137 million based on the higher average selling prices with 13.4% and for a slightly lower quantity of with 3.3%. We have also higher financial result 27% as a result of the increase in the interest income and the positive impact from the currency exchange rate. Windfall and windfall tax, as you know, the windfall tax was at 30th of June last year. So we have 0 expense on that in 2026, but we did have RON 341 million in the first quarter of last year. We have also higher income tax due to the increased profit of this year versus the last -- and we have also an increase of 3% on OpEx. This comes mainly from the waste disposal tax, which in October last year, we increased by regulatory decision from EUR 2 to EUR 4 per megawatt with an impact of RON 25 million. I think we can skip that because we discussed already the main highlights. In terms of the waterfall that you see, it's plainly visible that the main impact for the increased net result is coming, first of all, from the windfall tax, which has the biggest contribution, let's say, the second is the sales of electricity, RON 138 million. We did have also some negative impact, RON 69 million on tax -- income tax that we mentioned previously. We do have also an increase in depreciation and amortization. This comes, as you may remember, from the increase in value of the assets due to the revaluation at the end of last year and the increase in operating expense, tax and tax hike started in October last year. On the individual versus consolidated financial performance, this basically comes from the intercompany adjustments. In total, the total effect on profit is RON 36 million, so not really material. So I would not bore you with each element. If you have questions, we can address this in the Q&A session at the end. On the financial position, we do have increase of noncurrent assets RON 355 million or RON 2.7% increase. This comes RON 346 million from a net increase in tangible assets. We have RON 546 million net impact of the inflows and outflows of tangible assets. This relates to inflows from the investments with a strong weight to Unit 1 refurbishment project, which, as you know, is in progress and RON 200 million decrease represents the expense of depreciation and impairment of fixed assets. On current assets, we do have an increase of 16% or RON 790 a 34% increase in cash and bank deposits with a maturity of more than 3 months and an increase in cash equivalents as a result of the liquidation of deposit and treasury certificates in March 2026. The noncurrent liabilities increased to RON 7 million due to liability provision for the waste storage, lower waste and nuclear safety salaries. On current liabilities, we have an increase of RON 250 million or 20%. This comes from the increase in income tax due at the end of quarter 1, 2026 and an increase of RON 49 million increase in trade and other payables mainly influenced by obligations to our suppliers like Energy and [indiscernible] . Equity and equity's, of course, we are seeing the increase of earnings from the results allocation. On the consolidated individual to consolidated position, of course, the main difference is represented from the cancellation of transaction as loans to subsidiaries. And there is nothing special to mention. So let's move to the sales of electricity. Electricity sales evolution from quarter 1, 2025 to quarter 1,2026 is determined mainly by an increase in weighted average selling price of 13.2% as we mentioned, a slightly lower quantity with 3.3%. On the competitive market, we have a slight decrease in revenue related to an increase in prices, but also a decrease in quantity sold with 13%. On the spot market, we have 84% increase in revenue related to increase in quantities sold and slight decrease in price 1.7% and a small decrease in balancing market. The sales mix was different, which determined the increase in the average price of 13.2%, but also more favorable trading mix on the spot market. In terms of sales structure analysis on the competitive market for TCCB, the quantity sold represented 80.6% of the total sales of electricity compared to 89.9% recorded in first quarter of 2025. The average selling price during the period was RON 582 which is 14.3% increase versus the same period of 2025, which was RON 509 per megawatt. On the spot market, the quantities of electricity represented 19% of the total sales. And the average price on the spot market was RON 644 per megawatt compared with RON 655 per megawatt in 2025 slightly [indiscernible] . In terms of higher spot market weight in quarter 1 of this year versus last year, we can that here, we are seeing a bit of Iran conflict effect. Basically, some of the customers waited in end of February and March to see how the market would go. So it was kind of still or a waiting period. On OpEx -- we have RON 296 million reduction compared to Q1 of 2025 and RON 59 million compared with the budget with the proposed budget is not yet an approved budget. If the increase in costs are coming mainly from depreciation and amortization, this is mainly determined by the increase in the net book value of fixed assets revalued at the end of last year, of course, updated to actual market prices and the ANDR contribution which increased with RON 25 million due to the increase in tariff per megawatt from EUR 2 to EUR 4. These increases were compensated as we previously stated by the elimination of the windfall tax with a difference from last year of RON 341 million. And we had also decreases in operating expenses mainly due to decrease in legal and consulting services, which were lower with almost 14% versus last year. The cost of trade electricity, we had a decrease of 46% due to the decrease of 18.4% on the balancing market compared with the same period of last year. CapEx, we have 538 million CapEx expenditure from RON 3.4 billion program. This is 15.7% completion versus last year, we do have slightly better completion last year was only 14.1%. Of course, out of this CapEx, as you know, the biggest part is the refurbishment of Unit 1, which is in progress. As related to the main investment and long-term strategic progress update on Unit 1 refurbishment. In the first quarter of 2026, the activities under PPC contract, the PMO framework and the EPC contract continued as scheduled. An important note here on April 16, the EU Commission opened as a standard procedure and in-depth state investigation to the Romanian state support for refurbishment of Unit 1. This in-depth analysis is very characteristic to large projects and especially to nuclear project. On May 18, SNN announced completion of the first continuous concrete core of the permanent structures into the refurbishment project, the most complex operation of its kind carried out of the plant since the construction works of Unit2 in 2007. 3,470 cubic meters of concrete were used the foundation, about 380 concrete mixer trucks used. In terms of Unit 3 and 4 project in the first quarter of 2026 through Extraordinary General Meeting of Shareholders resolution, SNN approved acting as a guarantor for enabling securing a loan of up to EUR 46 million equivalent loan in U.S. dollars from the export import Bank of United States. The same resolution also approved the conclusion of the corresponding credit agreement of about EUR 46 million to USD [ Energonuclear ] S.A. as a borrower, SNN as guarantor and US EXIM Bank as lender and JPMorgan SE as a documentation agent. These loans were actually signed in April. On SMR, on May 18, 2026, SNN informed that the small SMR project is currently in the phase proceeding Stage 3, pre-EPC phase. This stage includes a list of activities to be carried by Power completion of geotechnical investigation at the site, continuation of the licensing process, finalization of the negotiation of the Pre-EPC and of the contracts for the procurement of longer materials, definition of supply chain materials and equipment and preparation of the company for the Pre-EPC and later on EPC stages. On CTRF on the treating removal facility in the first quarter of 2026, KHMP continue negotiating contracts for the noncontract procurement packages, reaching 18 signed contracts out of 23 at the end of March. Construction activities are focused on the 95M level encompassing structural metal work assembly work installation and bush-hammering with rebar cleaning following the concrete pouring. At levels 91-95M preparatory works for the wall waterproofing membrane installation were initiated. Additionally, the operating training program for the pilot facility was successfully completed. On the medical isotope project, the Lutetium 177 in the first quarter of 2026, approved on the design change related to the project implementation. Also a number of documents pertaining to the conceptual design stage were reviewed and approved. Nuclear safety reviews were completed and led the notification of the best solution for certain equipment. So nuclear safety and production continuity will not be affected. In terms of the technical performances, both in all 3 months, January, February and March, the reactive emissions were in green under the standard approved levels. The nuclear fuel burn rate was 172 over the planned level of 156 megawatts hour per kilogram of uranium. The capacity factor for accumulated units in quarter 1 of 2026, was 94.5% -- so satisfactory performance. And that's it. Thank you for your attention.We are waiting for --

Well, thank you very much for joining us. As usual, we are going to -- I think we have a question on the -- so could you tell us why it's not available anymore the option to vote in GMS through e-vote platform for retail investors. It is more easier, more transparent, less bureaucratic and most environmental friendly than any other option. Yes, I will answer this. We do not have implemented yet the e-vote. We are going to do so in the future. Nonetheless, the e-vote is not going to exclude the physical presence for the GMS meetings. Thank you. Any other questions, please? On the SMR project, do you see any material risk coming from new Scale? Can you provide any color on the expectations for the second quarter?

We don't see any material risk coming from new Scale. So the answer is not. And on the second color -- on the second point on the color of the expectations, yes, we'll have an impact from the unplanned stoppage from Unit 2. This is yet to be determined, and we'll know more at the end of the unplanned stop. But still, we are expecting positive results and so on.

Okay. I see no other questions. So we are going to post this afternoon the audio file and the presentation on our Investor Relations page. Thank you very much for joining this teleconference. Have a great afternoon. Thank you.