Release 2016 dividends payment

According to Resolution no. 2 of the Ordinary General Meeting of the Shareholders held on 27.04.2017, published in the Official Journal of Romania, Part IV, no. 1638/15.05.2017, the National Gas Transmission Company Transgaz SA, headquartered in Medias, 1 C.I. Motas Square, Sibiu County, notifies the shareholders registered at the registration date of 27 June 2017 that the dividends for the financial year 2016 will be paid-out by Depozitarul Central SA and BRD Groupe Societe Generale – the appointed payment agent, as of 18 July 2017 (the date of payment). The ex-date set by the Ordinary General Meeting of the Shareholders is 26.06.2017.

The gross dividend for financial year 2016 is 46.33 RON/share and the tax on dividend will be withheld at source and paid up to the state budget according to the shares under the applicable laws. According to the new Fiscal Code entered into force on 1 January 2016, the standard tax rate applicable to the dividends for year 2016 is of 5%. If the non-resident shareholders prove that they can benefit from a more favourable tax rate, the tax deductions will be applied according to the conventions for the avoidance of double taxation concluded by the Romanian State in this regard. Other provisions of the Fiscal Code will also be taken into consideration for the determination of the tax on dividends.

The payment of the net dividends due to the shareholders of Transgaz is subject to the general legal prescription provisions, being prescriptible within 3 (three) years from the date of payment. The dividend for financial year 2016 will be paid out between 18 July 2017 and 18 July 2020, the last date of payment.

The Depozitarul Central SA fees and the BRD Groupe Societe Generale fees to be paid for the net dividends will be borne by Transgaz SA.