Annual Report of the Administrators 2010 - Transelectrica

Annual Report of the Administrators
2010
Consolidated financial statements
Audited
April 2011
LANGUAGE DISCLAIMER: This document represents the English version of the original official Romanian document filed with the Romanian National Securities
Commission CNVM. The English version has been created for English readers’ convenience. Reasonable efforts have been made to provide an accurate translation,
however, discrepancies may occur. The Romanian version of this document is the original official document. Any discrepancies or differences created in the translation are
not binding. If any questions arise related to the accuracy of the information contained in the English version, please refer to the Romanian version of the document which
is the official version.
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 1

IDENTIFICATION DATA
Annual report according to the provisions of art. 227 of Law 297/2004 regarding the capital market, for the financial
exercise concluded on December 31 st , 2010
Date of the report: March 18 th , 2011
Name of the trading company: National Power Grid Company TRANSELECTRICA SA
Headquarters: Bucharest 1, Blvd. General Gheorghe Magheru no. 33, code 010325
Secondary office: Bucharest 3, Str. Olteni no. 2-4, code 030786
Phone / fax numbers: 0213035611 / 0213035610
Single (fiscal) code with the Office of the Commercial Register: 13328043
Number in the Commercial Register: J40/8060/2000
Subscribed and paid share capital: 733,031,420 lei
Regulated market where the issued securities are transacted: Bucharest Stock Exchange
The main characteristics of the securities issued: 73,303,142 ordinary, nominative, indivisible, freely marketable shares
beginning with 29.08.2006 (date when their transaction was admitted on the regulated market managed by Co.
Bucharest Stock Exchange SA), at 10 lei/share nominal value.
AUDITING THE FINANCIAL STATEMENTS
This Report relies on and provides data and information of accounting and/or financial nature relating to the Company’s
activities during the financial exercise ended on December 31 st , 2010.
The information has come from the audited individual financial statements of Transelectrica SA related to the financial
exercise concluded on December 31 st , 2010.
STATEMENT ABOUT THE REPORT
The consolidated annual report has been elaborated according to the provisions of art. 227 from Law 297/2004 for the
financial exercise concluded on December 31 st , 2010 and provides only the new elements added as against the 2010
annual individual report, which elements have resulted from the consolidation of the Company’s financial statements
with those of its subsidiaries’.
The issuer, the National Power Grid Company TRANSELECTRICA SA, is seated in Bucharest 1, Blvd. General Gheorghe
Magheru no. 33, and postal code 010325.
The regulated market where the issued securities are transacted is the Bucharest Stock Exchange, and the main
characteristics of the Transelectrica-issued securities are as follows: 73,303,142 ordinary, nominative, indivisible, freely
marketable shares from August 29 th , 2006, at 10 lei/share nominal value.
STATEMENTS ON THE PROSPECTS
This Report comprises, among others, statements expressing the expectations of Transelectrica’s top management with
respect to the Company’s prospects.
The Report relies on current estimations and projections about future events and consequently implies risks known but
also unknown, uncertainties, other factors which might change the effective results, financial conditions, performance
and achievements in the following period.
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 2

STATEMENT OF RESPONSIBLE PERSONS FROM THE COMPANY
We the undersigned:
Stelian Alexandru GAL, BA chairman and Director General,
Octavian LOHAN, Deputy Director General – System Management Division,
Razvan Catalin PURDILA, Deputy Director General – Economic and Commercial Management Division, and
Maria IONESCU, Economic Director - Budget, Finance, Accounting and Patrimonial Compartment
declare on our own responsibility that, to the best of our knowledge the financial-accounting statements consolidated
on December 31 st , 2010, elaborated according to the applicable accounting standards provide an accurate image
conformant to the real condition of the assets, liabilities, financial position, and profit and loss account of Transelectrica
SA, while the BA Report, drawn up in accordance with the provisions of the National Securities Commission, comprises
an accurate analysis of the Company’s development and performance as well as the main risks and uncertainties specific
to the activities carried out.
BA chairman and
Director General
Deputy Director General
System Management
Deputy Director General
Economic and Commercial
Management
Economic Director
Stelian Alexandru GAL Octavian LOHAN Razvan Catalin PURDILA Maria IONESCU
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 3

TABLE OF CONTENTS
Identification data ..................................................................................................................................2
Auditing the financial statements ............................................................................................................2
Statement about the Report ...................................................................................................................2
Statement on the prospects ...................................................................................................................2
Statement of responsible persons from the Company ............................................................................3
KEY FIGURES ............ ………………………………………..Error! Bookmark not defined.
ACTIVITY ........................................................................................................................ 6
General context .....................................................................................................................................6
GENERAL EVALUATION…………………………………………………………………………………………… 7
ACTIVITIES ................................................................................................................... 10
Management of subsidiaries ................................................................................................................ 12
FINANCIAL-ACCOUNTING SITUATION ...................................................................... 13
Accounting balance sheet .................................................................................................................... 13
Profit and loss account ......................................................................................................................... 14
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 4

KEY FIGURES
No.
Indicator
[thousand lei]
2010 2009 2008
1. Turnover 2,520,130 2,459,751 2,890,502
2. Gross profit 130,202 12,113 62,608
3. Net profit 103,965 18,253 50,367
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 5

ACTIVITY
GENERAL CONTEXT
Transelectrica has six subsidiaries, of which is the single shareholder.
Only three of them (SMART, TELETRANS and ICEMENERG) are included in the consolidated financial statements.
FORMENERG and ICEMENERG-Service are not consolidated because, according to the applicable accounting legislation,
the amount of their activity is considered insignificant for the purpose of consolidation, while OPCOM complies with the
rules of the National Regulatory Authority in the Energy field (ANRE) and has an independent position on the power
market; consequently Transelectrica has no control over this subsidiary.
The main activity domain of the subsidiaries included in the consolidation is the supply of specific services, especially to
the mother Company but also to third parties, as follows:
− SMART – supplier of services and work for the maintenance of electric power installations, for their refurbishment
and modernisation; consulting and design services, as well as manufacture of specific products for the electric
power installations;
− TELETRANS – supplier of telecommunication and IT services for the mother Company as well as provider of specific
services on the liberalised communication market of Romania;
− ICEMENERG – supplier of research and engineering services in the domain of processes and equipment for
electricity and heat generation, transmission, distribuion and utilisation;
In accordance with the document Guidelines for the restructuring and privatisation strategy of Transelectrica’s
subsidiaries that the Company elaborated and the Shareholders’ General Assembly approved in August 2005, only the
privatisation of those subsidiaries was included whose activities do not impact the Company’s mission of transmission
and system operator namely ICEMENERG-SERVICE, ICEMENERG, and FORMENERG.
Thus:
In September 2010 the Governmental Decision (GD) 925/01.09.2010 regarding the establishment, organisation and
operation of the National Energy Research-Development Institute ICEMENERG Bucharest was published in Romania’s
Official Gazette no. 648/17.09.2010 HG. Such decision provided establishing the Institute under the coordination of the
MECMA, by reorganising the trading company subsidiary Energy Research and Modernising Institute ICEMENERG SA,
which was about to be de-commissioned. To the date of this report, such document has not been put in practice.
The situation of the following two subsidiaries is as follows: several working variants have been considered for
ICEMENERG-SERVICE, which is under special administration, the option being to adopt a simplified privatisation
procedure, while the restructuring/privatisation concept for FORMENERG relies on enhancing the professional training
activities and maintaining the shareholder structure within the power sy6stem, and the possible change of the
ownership structure by capital growth is under study.
The consolidated financial statements refer to the activity of the National Power Grid Company Transelectrica SA and of
its subsidiaries Co. SMART SA, Co. TELETRANS SA and Co. ICEMENERG SA, collectively called the Group together with the
Company.
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 6

GENERAL EVALUATION
The general results of the activities of the Group consisting of the Company and its three subsidiaries have been as
follows in 2008-2010:
Indicators
[thousand lei]
2010 2009 2008
’10/’09
[%]
Turnover 2,520,130 2,459,751 2,890,502 ↑ 2.45
Total revenues 2,777,780 2,574,946 3,029.275 ↑ 7.88
Total expenses 2,647,578 2,562,833 2,966,667 ↑ 3.31
Gross profit 130,202 12,113 62,608 ↑ 974.89
Source: Transelectrica
The total revenues and respectively the turnover of 2010 have shown an increase compared to 2009, mainly due to an
increased amount of electricity for which revenues are calculated relating to the licenced services on the electricity
market (transmission service; system services; managing the electricity wholesale market).
The total expenses of the Group have been made depending on the level of total revenues in correlation with the
generation and investment plans, as well as with the other Group-approved programmes providing its safe and efficient
operation.
In 2010 the total expenses of the Group grew mainly because of the increased costs of losses and the registration in
2010 of the debt depreciation expenses (provisions) of uncertain clients on the electricity market (debts that can no
longer be recovered from ill paying clients), below the growth level of total revenues, leading to an increased gross
profit.
Gross profit
The Company’s economic-financial activity in 2010 ended with a gross profit of 130,202 thousand lei, by 118,089
thousand lei higher than that recorded in 2009, mainly due to the increased electricity amount rated for the services
provided on the electricity market.
The development of the gross profit at Group level, structured by consolidated entities in 2008 – 2010, as well as the
share of each entity in the total gross profit are as follows:
Indicators
[thousand lei]
2010 2009 2008 ’10/’09
Value [%] Value [%] Value [%] [%]
TRANSELECTRICA 118,569 91.06 9,269 76.52 189,619 302.87 1,179.20
SMART 7,171 5.51 1,467 12.11 -97,804 -156.22 388.82
TELETRANS 5,365 4.12 3,415 28.19 -27,986 -44.70 57.09
ICEMENERG -903 -0.69 -2,038 -16.82 -1,221 -1.95 N/A
TOTAL 130,202 100.00 12,113 100.00 62,608 100.00 974.89
Source: Transelectrica
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 7

Development of the financial indicators in the last three years is shown below:
No. Indicators Computation formula 2010 2009 2008
1. Profitability indicators
a) EBITDA in the total sales
b) EBIT in the total sales
c) Rate of net profit
d) Rate of capital profitability
2. Liquidity indicators
a) Indicator of current liquidity
b) Indicator of immediate liquidity
3. Risk indicators
a) Indicator of indebtedness
b) Rate of interest coverage
4. Activity indicators
a) Debts – clients turnover
b) Credits – suppliers turnover
Sursa: Transelectrica
EBITDA
Turnover
EBIT
Turnover
Net profit
Turnover
Net profit
Equities
The profitability indicators grew compared to 2009 due to an increased gross profit following the higher electricity
amounts for which revenues are calculated, relating to licenced services on the electricity market (transmission service;
system services; managing the wholesale electricity market).
The liquidity Indicators have registered optimum values, expressing the extent to which the Group has ensured the
available sums needed to pay current debts in due time, in the context when stocks have very little values and no
significant impact over the analysis of immediate liquidity. Liquidity indicators recorded a reduction compared to the
2009 figures, but their values express a positive situation of the Group, which provides premises for activities developed
under normal conditions.
Risk indicators are mainly represented by the indebtedness degree indicator and mirror the ratio between the
borrowed capital and the equity/engaged capital of the Group.
The indebtedness indicator was calculated using the long-term loans registered in the accounting books on December
31 st , 2010, a higher value compared to December 31 st , 2009.
This indicator is paid an important attention in the Group activities, its level being provided in all the contracts
concluded with foreign financing banks (EIB, EBRD, IBRD) for long-term credits. The development of the indebtness
degree mirrors the Group’s concern to draw long-term financing sources needed to sustain its investment plans
proposed for the following years.
The current indebtness shows a potential increase of the indebtness level in the next period, which would allow drawing
long-term sources to implement new investment projects.
Activity indicators provide information with respect to:
Floating assets
Short-term debts
Floating assets- Stocks
Short-term debts
Borrowed capital
Equities
EBIT
Interest expenses
Average client balance x 365
(days)
Turnover
Average supplier balance x 365
(days)
Turnover
- The input or output rates of the Company’s cash flows;
- The Group’s capability to control the floating capital and its activity;
18.08% 14.46% 15.84%
7.48% 4.01% 7.51%
4.13% 0.74% 1.74%
5.19% 0.96% 2.60%
1.06 1.16 1.25
1.00 1.10 1.20
0.49 0.50 0.52
1.23 0.90 1.11
95 110 97
80 91 76
- The Group’s capability to correlate the working capital, the need of working capital and net treasury;
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 8

- The turnover of liabilities and debts;
An increasing value of such indicators can show problems relating to controlling the credit given to clients (bad payers),
and it approximates the number of crediting days which the Company obtains from its suppliers.
An analysis of such management indicators reveal the financial balance at Company level, but certain conclusions can be
also drawn that the Group has to take into account during its future financial activity:
- Reducing the collection interval of liabilities and the payment term of debts;
- A trend to draw the payment period of commercial debts near the liability collection period;
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 9

ACTIVITIES
In 2010 the three subsidiaries included in the consolidation developed activities in accordance with their main fields of
business as follows:
− SMART – has carried out activities:
o As service and work provider for:
� The maintenance of electric power installations,
� Refurbishing and upgrading electric power installations,
o As supplier of consulting and design services,
� To manufacture specific products for electric power installations,
o Of technical revision, technical inspections, current and capital repairs, interventions to accidental events
and expertise operations for clients in the power field and not only, especially to:
� Installations and equipment for the low, medium, high and very high voltage (750 kV inclusive)
electricity transmission and distribution,
� Protections, automations, metering and command-control equipment and circuits for transformer
and connection electric substations,
� Transformers and autotransformers of all power and voltage levels (up to 500 MVA and 750 kV),
� Overhead and cable lines (from 110 kV to 750 kV);
o Of:
� Primary equipment installation (with vacuum, SF6, oil, air insulation),
� Installation of the protection, metering and command-control digital equipment and systems,
� Cable laying and connecting (high voltage, secondary circuits, optical fibre),
� Controls and parameter setting to the numerical equipment;
− TELETRANS – has carried out activities as follows:
o services for IT activities:
� services provided to corporate clients on the Romanian market and demanded by Transelectrica:
services like outsourcing the administration of information sysems, administration of IT networks,
IT systems and applications, elaborating IT applications specific to the clients, design and
manufacture of LAN, MAN and WAN networks, design and implementation of IT systems,
achieving IT systems and applications using relational databases, ERP systems, Internet sites, webbased
applications, support services, preventive/corrective maintenance for IT equipment and
systems, maintenance services to hardware and software;
� IP services offered on the Romanian market to corporate clients, suppliers of telecommunication
and Internet services: wide-band Internet services, physical supports for such connection types;
o services for process IT activities:
� maintenance of process IT systems / equipment;
� management of process IT systems;
� elaboration and implementation of new applications or development of existent ones;
� implementing and commissioning process IT systems;
� integrating the new command-control systems of refurbished electric substations into the
EMS/SCADA system;
� telecontrol/telemanagement of electric substations from the Territorial Power Dispatcher’s (DET)
/ National Power Dispatcher’s (DEN);
o services for telecommunication activities:
� for Transelectrica: services under Service Level Agreement (SLA) and services under order system;
� for governmental organisations and other clients on the Romanian liberalised telecommunications
market, by means of leased line services, dark fibre services, colocation services and their affiliate
ones;
− ICEMENERG – has carried out constant activities in the field of scientific research and technological engineering for
electricity and heat, as follows:
o Research services:
� Elaborating optimum modernisation, refurbishment and maintenance solutions for thermalmechanical
equipment;
� Elaborating methods and equipment for various types of tests, for equipment diagnostic;
� Elaborating databases and IT systems;
� Research studies and reviews grounding the energy policy measures at national level;
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 10

� Economic mechanisms and instruments specific to the power market;
� Environmental management and waste management studies;
� Elaborating new materials and technologies for sustainable development and maintenance in the
energy field;
o Engineering services in the power engineering field:
� Evaluating the technical condition and performance of electric generators and of primary electric
equipment from the electric substations and networks of the Romanian Power System (RPS) and
of industrial enterprises; measurements; expertise; diagnosis; tests etc.
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 11

MANAGEMENT OF SUBSIDIARIES
In 2010 the management of subsidiaries was provided as follows:
SMART:
− Florin MARZA Director General
− Vasile DRAGATOIU Director, Economic Division
− Cristian BACIU Director, Technical Division
TELETRANS:
− Horia HAHAIANU Director General
− Eliza PALADE PREDA Director, Economic Department
− Adelina LUPU POPESCU Director, Marketing and Sales Department
− Mihai BOZGU Director, Telecommunications Department
− Horia CAMPEANU Director, Process IT Department
− Dan BORDEA Director, IT Department
ICEMENERG:
− Gheorghe OLTEANU Director General
− Ecaterina DUSE Economic Director
− Mircea GHITULESCU Director, Biomass-centred Economy Centre
− Adrian ADAM Director, Centru Expertiză Materiale Energetice şi Echipamente
− Gheorghe PAUNA Director, Centru Energii Regenerabile
− Ion Dan IONESCU Director, Centru de Eficienţă Energetică
− Vasile RUGINA Marketing and Market Development Director
− Dan ZLATANOVICI Scientific Director
ICEMENERG SERVICE:
− Bogdan PASCU Director General
− Daniela ANDREI Director Economic
FORMENERG:
− Dragos FLORESCU Director General
− Marcel NICULESCU Economic Director
− Ioana VOICESCU Marketing Director
− Valentin Dominic COSTEA Professional Development Director
OPCOM:
− Victor IONESCU Director General
− Silvia FEDIUC Economic Director
− Luminita LUPULUI Director, Electricity Market Administration Division
− Lucian PALADE Director, Division of Electricity Market Supervision and Development
− Remus BARSANESCU Director, IT and Telecommunication Division
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 12

FINANCIAL-ACCOUNTING SITUATION
ACCOUNTING BALANCE SHEET
The balance sheet elements of the last three years are as follows:
Indicator
[thousand lei]
31.12.2010 31.12.2009 31.12.2008
’10/’09
[%]
Tangible assets 3,182,870 2,969,585 2,866,106 ↑ 7.18
Intangible assets 26,353 30,428 33,143 ↓ 13.39
Other investments 5,729 5,729 5,729 →
Total fixed assets 3,214,952 3,005,742 2,904,978 ↑ 6.96
Stocks 48,826 41,508 42,900 ↑ 17.63
Clients and assimilated accounts 675,207 633,883 848,321 ↑ 6.52
Cash and cash equivalents 160,403 163,610 224,219 ↓ 1.96
Total floating assets 884,436 839,001 1,115,440 ↑ 5.42
TOTAL ASSETS 4,099,388 3,844,743 4,020,418 ↑ 6.62
Share capital 1,091,526 1,091,526 1,091,526 →
Issuance premiums 49,843 49,843 49,843 →
Legal reserves 38,587 37,630 37,226 ↑ 2.54
Reserves from reevaluation 274,134 276,201 303,077 ↓ 0.75
Other reserves 983 922 53 ↑ 6.72
Result carried forward/(added losses) 547,975 448,705 452,847 ↑ 22.12
Total equities 2,003,048 1,904,827 1,934,572 ↑ 5.16
Revenues registered in advance on long-term 134,958 230,912 152,795 ↓ 41.55
Long-term loans 981,608 947,211 1,011,271 ↑ 3.63
Liabilities of employee benefits 28,127 22,283 20,258 ↑ 26.23
Debts regarding deferred taxes 26,894 14,262 0 ↑ 88.57
Total long-term debts 1,171,587 1,214,668 1,184,324 ↓ 3.55
Suppliers and other obligations 599,814 510,650 717,859 ↑ 17.46
Tax on current profit - - - N/A
Other taxes and liabilities for social securities 35,127 8,459 9,495 ↑ 315.25
Short-term loans 185,004 202,994 165,660 ↓ 8.86
Revenues registered in advance on shortterm
104,808 3,145 8,508 ↑ 3,232.53
Total current liabilities 924,753 725,248 901,522 ↑ 27.51
Total liabilities 2,096,340 1,939,916 2,085,846 ↑ 8.06
TOTAL LIABILITIES AND EQUITIES 4,099,388 3,844,743 4,020,418 ↑ 6.62
Source: Transelectrica
Intangible assets - on 31.12.2010 the intangible assets registered a reduction in the net value compared to 2009,
determined mainly by registering the depreciation expenses of intangible assets during the 2010, when new software
licences and operation systems have been procured and therefore investment expenses have been made for IT systems.
Tangible assets - on 31.12.2010 the tangible assets registered an increase compared to 2009, determined mainly by:
- New investment projects initiated under the approved annual programmes;
- The registration of lands belonging to the Company’s private domain for whom ownership deeds have been obtained;
Liabilities - on 31.12.2010 liabilities registered a value growth compared to 31.12.2009, determined mainly by the
increased value of Company-issued receivable invoices for services provided on the electricity market, for larger
electricity amounts that have been rated.
Cash desk and bank accounts - on 31.12.2010 a reduction was recorded in the monetary availability in the Company’s
bank accounts compared to 31.12.2009, determined mainly by the failure to collect issued invoices on their deadlines.
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 13

Short term debts - they grew on 31.12.2010 compared to 31.12.2009, such growth being determined by the increased
exchange rate relating to the short-term segment of investment credits that the Company took; by the increased
payment obligations of the Company to electricity market participants because activities grew on this market and the
amount of 92,468 lei from the long-term segment has been re-classified for the short-term one of the revenues
registered in advance with respect to the grid connections financed from the connection fee that wiil be commissioned
in 2011.
Long term debts - on 31.12.2010 the revenues registered in advance show a diminution compared to 2009 determined
by re-classifying the amount of 92,468 lei from the long-term segment to the short-term one of the revenues registered
in advance with respect to the grid connections financed from the connection fee that will be commissioned in 2011.
Long-term loans grew on 31.12.2010 compared to 31.12.2009 because of the increased exchange rate for the reevaluation
of investment credits taken by the Company and because a loan has been contracted with the EIB to finance
the 2010 investment programme.
Subscribed and paid capital - in 2010 the Group made no changes in the share capital.
Reserves - on 31.12.2010 reserves grew compared to 31.12.2009 because of the increased legal reserve and others
following distribution of the 2009 profit.
PROFIT AND LOSS ACCOUNT
The Group’s profit and loss account in 2008-2010 is as follows:
Indicator
[thousand lei]
2010 2009 2008
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 14
’10/’09
[%]
TOTAL REVENUES, of which: 2,777,780 2,574,946 3,029,275 ↑ 7.88
Operational revenues 2,683,193 2,551,649 2,988,066 ↑ 5.16
Financial revenues 94,587 23,297 41,209 ↑ 306.01
TOTAL EXPENSES, of which: 2,647,578 2,562,833 2,966,667 ↑ 3.31
Operational expenses 2,494,772 2,453,033 2,770,888 ↑ 1.70
Financial expenses 152,806 109,800 195,779 ↑ 39.17
GROSS PROFIT (GP), of which: 130,202 12,113 62,608 ↑ 974.89
Operations profit 188,421 98,616 217,178 ↑ 91.07
Financial profit / loss (58,219) (86,503) (154,570) ↓ 32.70
PROFIT TAX (26,237) 6,140 (12,241) N/A
Sursa: Transelectrica
The operational revenues achieved in 2008-2010, structured by consolidated entities, are as follows:
Indicator
2010 2009 2008 ‘10/’09
[thousand lei]
Value [%] Value [%] Value [%] [%]
Revenues from transmission
services (Transelectrica)
968,116 36.08 939,764 36.83 1,045,734 34.99 ↑ 3.02
Revenues from system services
(Transelectrica)
1,163,902 43.38 1,076,100 42.17 1,090,344 36.49 ↑ 8.16
Revenues from balancing market
(Transelectrica)
388,112 14.46 443,887 17.40 754,424 25.25 ↓ 12.57
Other revenues, of which: 163,063 6.08 91,898 3.60 97.564 3.27 ↑ 77.44
- TRANSELECTRICA 130,092 4.85 42,359 1.66 46.965 1.57 ↑ 207.12
- SMART 12,161 0.45 24,654 0.97 31.293 1.05 ↓ 50.67
- TELETRANS 9,644 0.36 14,597 0.57 3.243 0.11 ↓ 33.93
- ICEMENERG 11,166 0.42 10,288 0.40 16.063 0.54 ↑ 8.53
TOTAL 2,683,193 100.00 2,551,649 100.00 2,988,066 100.00 ↑ 5.16
Source: Transelectrica
Revenues from operational activities grew in 2010 compared to the previous year due mainly to a 5.7% increase in the
electricity amount rated for the services provided on the electricity market (approximately 3 TWh).

The Group’s financial revenues obtained in 2008-2010, structured by consolidated entities, are as follows:
Indicator
2010 2009 2008 ‘10/’09
[thousand lei]
Value [%] Value [%] Value [%] [%]
Financial revenues, of which: 94,587 100.00 23,297 100.00 41,209 100.00 ↑ 306.01
- TRANSELECTRICA 96,877 102.42 22,247 95.49 40,699 98.76 ↑ 335.46
- SMART 191 0.20 647 2.78 120 0.29 ↓ 70.48
- TELETRANS -2,516 -2.66 391 1.68 271 0.66 N/A
- ICEMENERG
Source: Transelectrica
35 0.04 12 0.05 119 0.29 ↑ 191.67
The growth of financial revenues in 2010 compared to 2009 was determined by the exchange rate fluctuations of the
national currecy against the currencies in which the Company has engaged foreign credits for investments.
Operational expenses made in 2008-2010, structured by consolidated entities, are as follows:
Indicator
2010 2009 2008 ‘10/’09
[thousand lei]
Value [%] Value [%] Value [%] [%]
Costs of electricity market
operation (Transelectrica)
1,392,103 55.80 1,307,906 53.32 1,295,216 46.74 ↑ 6.44
Balancing market expenses
(Transelectrica)
388,112 15.56 443,887 18.10 754,424 27.23 ↓ 12.57
Other operational expenses, of
which:
714,557 28.64 701,240 28.59 721,248 26.03 ↑ 1.90
- TRANSELECTRICA 697,329 27.95 549,309 22.39 545,447 19.68 ↑ 26.95
- SMART 3,881 0.16 100,193 4.08 127,110 4.59 ↓ 96.13
- TELETRANS 1,265 0.05 39,402 1.61 31,291 1.13 ↓ 96.79
- ICEMENERG 12,082 0.48 12,336 0.50 17,400 0.63 ↓ 2.06
TOTAL 2,494,772 100,00 2,453,033 100.00 2,770,888 100.00 ↑ 1.70
Source: Transelectrica
The Group’s operational expenses have been made depending on the level of total revenues obtained in correlation
with the generation, investment and other programmes approved at Group level to provide its safe and economically
efficient operation.
The increased operational expenses of 2010 compared to 2009 have been mainly impacted by:
- The growth of certain expenses outside the Company’s management competence, such as:
- Expenses with losses grew by 8.87% compared to 2009. The amount of electricity needed to cover losses is annually
regulated by ANRE under decision, and so are the price and the supplier depending on the electricity forecast used in
the grid outline.
- The expenses of liability depreciation (provisions) for uncertain clients on the electricity market have been recorded in
2010 (liabilities that can no longer be recovered from ill paying clients).
The Group’s financial expenses, structured by consolidated entities, are as follows:
Indicator
2010 2009 2008 ‘10/’09
[thousand lei]
Value [%] Value [%] Value [%] [%]
Financial expenses, of which: 152,806 100.00 109,800 100.00 195,779 100.00 ↑ 39.17
- TRANSELECTRICA 150,986 98.81 107,271 97.70 193,458 98.81 ↑ 40.75
- SMART 1,300 0.85 2,114 1.92 2,110 1.08 ↓ 38.51
- TELETRANS 498 0.33 413 0.38 208 0.11 ↑ 20.58
- ICEMENERG
Source: Transelectrica
22 0.01 2 0.00 3 0 ↑ 1,000.00
The Group’s 2010 financial expenses have grown compared to 2009, being impacted by the events on the financial
market during 2010.
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 15

LIST of TRANSELECTRICA’s SUBSIDIARIES – HEADQUARTERS
Trading company Electricity Market Operator OPCOM SA, Bucharest 3, Blvd Hristo Botev no. 16-18, postal code 030236,
www.opcom.ro
Trading company for Maintenance Services to Electricity Transmission Grids SMART SA, Bucharest 1, Blvd General
Gheorghe Magheru no. 33, postal code 010325, www.smart-sa.ro
Trading company for Telecommunications and IT Services into Electricity Transmission Grids TELETRANS SA, Bucharest 3,
Blvd Hristo Botev no. 16-18, postal code 030236, www.teletrans.ro
Trading company for the Training of Power Engineers from Romania FORMENERG SA, Bucharest 4, Blvd Gheorghe Sincai
no. 3, postal code 040311, www.formenerg.ro
Trading company subsidiary Energy Research and Modernising Institute ICEMENERG SA, Bucharest 3, Blvd
Energeticienilor no. 8, postal code 032092, www.icemenerg.ro
Trading company subsidiary ICEMENERG - SERVICE SA, Bucharest 3, Blvd Energeticienilor no. 8, postal code 032092
Stelian Alexandru GAL
BA chairman and Director General
Octavian LOHAN
Deputy Director General, System Management
Razvan Catalin PURDILA
TRANSELECTRICA – Raport Anual 2010 – consolidat Pag. 16
*
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Deputy Director General, Economic and Commercial Management
Maria IONESCU
Economic Director