The competent bodies of the PPC Group companies in Romania decided to simplify the organizational structure of the companies in order to achieve more efficient management, greater flexibility, and faster provision of services to customers.

Specifically, in the supply activity, the two different companies are merged into one, which will be called PPC Energie. The process is scheduled to take place this year, with an estimated completion date of December 31, 2024.

Similarly, in the distribution business, the three different companies are merging into one, to be called Rețele Electrice Romania. The process is expected to take place in the coming months, with an estimated completion date of November 30, 2024.

Following the completion of the merger, PPC Energie, as the PPC Group's sole electricity supply company in Romania, will be able to provide integrated solutions to all its customers and a single service experience. At the same time, as PPC Energie will now serve approximately 3 million customers in a unified manner, it will be able to achieve a reduction in average energy supply costs and more efficiently manage any volatility in the energy market.

Similarly, Rețele Electrice Romania, the Group's sole distribution company in Romania following the completion of the merger, will serve approximately 3.1 million customers, will be able to operate more efficiently, will have greater investment flexibility through more flexible and faster allocation of capital throughout the regulatory cycle, and will accelerate network deployment as it will have improved access to financing capital.

The merger will not affect the companies' employees, as the employees of the acquired companies will be transferred to both PPC Energie and Rețele Electrice Romania.

At the PPC Group level, the simplification of the corporate structure of the activities in Romania contributes to better monitoring and more efficient cooperation between the companies in the country and the group, creating more value for PPC shareholders. The mergers are not expected to require the approval of competition authorities, as there will be no change of control for the companies involved.