Photon Energy N.V.

Quarterly Report • Sep 7, 2022

Photon Energy N.V.

Management Report for Q2 2022

For the period from 1 April to 30 June 2022

And Interim Consolidated Financial Statements H1 2022

For the period of 6 Months Ended 30 June 2022

11 August 2022 | Amsterdam, The Netherlands

1. Selected financial results

1.1 Selected financial results for Photon Energy Group, for the period of 1 April to 30 June 2022

	EUR		PLN		CZK
in Thousands	Q2 2021	Q2 2022	Q2 2021	Q2 2022	Q2 2021	Q2 2022
Total revenues	9,855	23,229	44,632	107,963	252,650	572,457
EBITDA	3,898	8,119	17,655	37,735	99,941	200,085
EBIT	968	4,640	4,384	21,568	24,819	114,359
Profit / loss before taxation	-565	2,619	-2,560	12,173	-14,491	64,545
Profit / loss	-869	2,030	-3,934	9,433	-22,267	50,019
Total comprehensive income	505	546	2,289	2,537	12,957	13,451
Operating cash flow	1,266	-194	5,732	-902	32,449	-4,783
Investment cash flow	-3,614	-3,364	-16,370	-15,633	-92,666	-82,891
Financial cash flow	3,861	3,872	17,485	17,997	98,979	95,428
Net change in cash	1,512	315	6,847	1,462	38,761	7,754
EUR exchange rate - low	-	-	4.451	4.569	25.335	24.320
EUR exchange rate - average	-	-	4.529	4.648	25.638	24.644
EUR exchange rate - end of period	-	-	4.519	4.689	25.485	24.740
EUR exchange rate – high	-	-	4.609	4.713	26.085	25.365
	31.12.2021	30.06.2022	31.12.2021	30.06.2022	31.12.2021	30.06.2022
Non-current assets	142,463	140,667	643,737	659,611	3,630,679	3,480,106
Current assets	54,155	61,589	244,707	288,799	1,380,148	1,523,703
Of which Liquid assets	39,362	29,510	177,863	138,379	1,003,149	730,087
Total assets	196,618	202,255	888,440	948,405	5,010,802	5,003,784

Total equity 51,538 53,935 232,880 252,910 1,313,444 1,334,352 Current liabilities 33,957 33,076 153,439 155,098 865,394 818,299 Non-current liabilities 111,122 115,243 502,117 540,391 2,831,941 2,851,101

Notes: Exchange rates provided by the European Central Bank.

All balance sheet data as of 31.12.2021 have been extracted from audited figures for FY 2021.

The P&L and Cash-flow data presented are based on published quarterly reports.

Financial highlights:

• ► Unaudited consolidated revenues increased to EUR 23.229 million in Q2 2022 from EUR 9.855 million in Q2 2021, up by 135.7% YOY.
• ► EBITDA increased to EUR 8.119 million in Q2 2022 from EUR 3.898 million in Q2 2022, up by 108.3% YOY.
• ► Record EBIT of EUR 4.640 million in Q2 2022 compared to EUR 0.968 million in Q2 2021.
• ► A net profit of EUR 2.030 million was recorded in Q2 2022 compared to a net loss of EUR -0.869 million a year ago.
• ► Total comprehensive income for the second quarter of 2022 amounted to EUR 0.546 million, compared to EUR 0.505 million recorded for the same period one year ago.
• ► Increased equity of EUR 53.935 million at the end of Q2 2022, compared to EUR 51.538 million at the end of 2021.
• ► The adjusted equity ratio (defined as total equity divided by total capital, being the sum of interest-bearing debt and equity) increased to 29.3%, compared to 28.6% at the end of 2021.
• ► The Company has raised its full-year 2022 guidance with revenue expectations of EUR 85 million from the previously communicated EUR 65 million (up 133.8% YoY) and an EBITDA of EUR 24 million from the previous EUR 18 million (up 150.4% YoY).

Other highlights:

• ► Photon Energy switched 43.5 MWp of its Hungarian PV portfolio to merchant electricity sales.
• ► Photon Energy broke ground on first two of 32 MWp solar projects in Romania to be built in 2022.
• ► Photon Energy share received 'Buy' recommendations from AlsterResearch, WOOD & Co. and IPOPEMA analysts.
• ► Photon Energy Group successfully tapped its 6.50% green bond to 65 million euros.

After the reporting period:

► Photon Energy broke ground on another three solar projects in Romania.

1.2 Standalone financial results for Photon Energy N.V., for the period of 1 April to 30 June 2022

	EUR		PLN		CZK
in Thousands	Q2 2021	Q2 2022	Q2 2021	Q2 2022	Q2 2021	Q2 2022
Net turnover	889	1,158	4,028	5,380	22,804	28,526
Total operating income	889	1,158	4,028	5,380	22,804	28,526
Results before tax	-954	-1,743	-4,323	-8,102	-24,470	-42,959
Net result after tax	-955	-1,743	-4,323	-8,102	-24,472	-42,959
EUR exchange rate – low	-	-	4.451	4.569	25.335	24.320
EUR exchange rate – average	-	-	4.529	4.648	25.638	24.644
EUR exchange rate - end of period	-	-	4.519	4.689	25.485	24.740
EUR exchange rate – high	-	-	4.609	4.713	26.085	25.365
	31.12.2021	30.06.2022	31.12.2021	30.06.2022	31.12.2021	30.06.2022
Fixed assets	65,725	66,284	296,984	310,815	1,674,991	1,639,858
Current assets	101,883	108,955	460,371	510,909	2,596,493	2,695,557
Cash at banks and in hand	20,602	5,096	93,092	23,896	525,038	126,077
Total assets	167,608	175,239	757,355	821,724	4,271,484	4,335,415
Total equity	79,336	77,423	358,488	363,049	2,021,871	1,915,446
Current liabilities	28,869	28,422	130,449	133,274	735,735	703,154
Long-term debt	59,403	69,394	268,418	325,401	1,513,875	1,716,815

Notes:

Exchange rates are provided by the European Central Bank.

All balance sheet data as of 31.12.2021 have been extracted from audited figures for FY 2021.

All references to growth rate percentages compare the results of the reporting period to those of the prior year comparable period.

Total Comprehensive Income (TCI) is the sum of the profit after taxes plus Other Comprehensive income (OCI). According to IAS 16, Other comprehensive income includes revaluation of PPE in a proprietary portfolio to their fair values, share on OCI of associates and joint ventures and foreign currency translation differences.

EPC stands for Engineering, Procurement and Construction and refers to services related to project design, engineering, procurement and construction of solar power plants.

Throughout this report Photon Energy Group is referred to as the "Group", the "Company", the "Issuer" and/or "Photon Energy".

2. Management discussion and analysis

2.1 A note from the management board

Having achieved record revenues and earnings by driving strong growth across all our business lines in the first half of 2022, this year will probably go down in the Company's history as a truly pivotal period. In this Q2 reporting period only, we more than doubled our revenues YOY to a record level of EUR 23.229 million, while boosting our EBITDA by 108.3% to EUR 8.119 million and turning into the black at the pre-tax and after-tax levels. Considering this robust performance observed across our businesses in the first half of 2022, combined with our business outlook and solid project pipeline, we updated the Group's revenue expectations for the year 2022 to EUR 85 million from our previous guidance of up to EUR 65 million, and the Group's EBITDA target to EUR 24 million from our previous guidance of up to EUR 18 million.

During this first half year, we demonstrated our ability to rapidly adjust to changing market conditions by deciding to temporarily switch most of the Group's Hungarian power plants to the merchant model, meaning without any state support. As a result, revenues from the sale of electricity generated by the Group's growing portfolio benefited from the high electricity prices experienced globally. Selling electricity into the market is now a core part of our strategy which represents 83% of our total proprietary portfolio. Increases in other revenue streams were also experienced, mainly driven by the great momentum in the Group's PV component trading business, which distributes modules, inverters, and batteries.

On the project development front, we commissioned a 1.4 MWp power plant in Hungary and are progressing well with the construction of our first five power plants in Romania. Our first project in the country, where we plan to build 32 MWp by the end of the year, is starting to take shape as we have just completed the mounting structures and installed half of the total of 10,600 solar modules. The Company is currently developing utility-scale PV projects with a combined capacity of over 820 MWp in its key CEE markets and Australia.

As to our presence on capital markets, the second quarter of 2022 has been an exciting period, with the tap of our EUR green bond 2021/27 for EUR 10 million and the issuance of three BUY recommendations for our shares from three Research houses: AlsterResearch (Germany), WOOD &Company (Czech Republic) and IPOPEMA (Poland).

The current economic backdrop strengthens our results, directly affected by the sharp increase in energy prices and incurring a growing demand for renewable electricity generation technology (impacting our trading business) as replacement of traditional fossil sources. While we are embracing this environment to accelerate our transformation, we have an obligation to remain vigilant though, to respond to changing business conditions while not losing sight of our long-term goals and opportunities.

Financial results

The Group's second quarter results demonstrated exciting progress with consolidated revenues of EUR 23.229 million reported in the second quarter of the year 2022 (+135.7% YOY), and EUR 32.367 million for the first half year (+124.4% YOY). This increase in revenues is primarily connected with higher revenues from the production of electricity generated by our new power plants operating on a merchant basis (1.4 MWp connected to the grid in December 2021 and 14.6 MWp in August 2021), as well as the high electricity prices on the market-linked direct sales component of the "Green Bonus" support scheme, into which the Czech portfolio switched at the beginning of the year. The Company also took important steps to underpin the growth of its business, including the decision to temporarily switch most of the Group's Hungarian IPP portfolio to a merchant model, representing 46.2 MWp out of the Company's 51.8 MWp Hungarian portfolio. Starting from April 2022, these power plants are not dependent on any kind of support mechanism. As a result, the Company saw revenues from the sale of electricity generated by the Group's growing portfolio benefit from rising electricity prices globally.

Besides the outstanding revenues from electricity production of EUR 10.963 million (+59.2% YOY), this strong outcome was driven by a remarkable increase in other revenue streams (EUR 12.266 million, +313.2% YOY). The latter was mainly attributable to the great momentum experienced by the Company's component trading business line, which distributes modules, inverters and now batteries, outshining a relatively more modest growth in O&M and EPC revenues.

This strong business performance led to a consolidated EBITDA improvement by 108.3% to EUR 8.119 million and resulted in a record Q2 EBIT of EUR 4.640 million compared to EUR 0.968 million in the same period last year by even absorbing the booking of a provision for the Hungarian windfall taxes adopted by the Hungarian government retrospectively in June 2022.

Most importantly, the Company turned around a EUR -0.565 million loss before taxation recorded in Q2 2021 to an outstanding EUR 2.619 million profit in Q2 2022, as well as its net profit with EUR 2.030 million achieved during the reporting period (vs. a EUR -0.869 million net loss in Q2 2021).

Despite a negative Other Comprehensive Income (OCI), affected by a weakening Hungarian Forint (HUF), the Company still reports an increased positive consolidated total comprehensive income for the quarter amounting to EUR 0.546 million, compared to EUR 0.505 million last year for the same period.

Year-to-date, Photon Energy closed a record first half of the year with revenues amounting to EUR 32.367 million, representing a 124.4% increase YOY, raised its EBITDA by 146.2% YOY to EUR 10.143 million. EBIT swung from a loss of EUR -0.507 million to a profit of EUR 5.609 million. Photon Energy recorded a net profit of EUR 0.539 million compared to a EUR -4.037 million loss in the first half of 2021. At the bottom line, TCI amounted to EUR 2.335 million compared to EUR 2.297 million a year ago. The adjusted equity ratio remained at a sound level of 29.3%.

Strong execution in Q2 drives full-year 2022 guidance upgrade

In the first half of the year, the continuing execution of our strategy yielded strong results: as of the end of Q2 2022, the Trailing twelvemonth Revenues and EBITDA amounted to EUR 54.301 million and EUR 15.606 million, respectively, putting us on the right trajectory to exceed our guidance for 2022.

Considering the robust performance observed across our businesses in the first half of 2022, combined with our business outlook and our solid project pipeline, we updated the Group's revenue expectations for the year 2022 to EUR 85 million from its previous guidance of up to EUR 65 million, representing a 133.8% (previously 78.8%) increase compared to audited revenues of EUR 36.4 million in 2021. As a result, the Group's EBITDA target was raised to EUR 24 million from its previous guidance of up to EUR 18 million, representing a +150.4% YOY (previously 87.8%).

Other key highlights for the second quarter of 2022 up to the reporting date are detailed below:

Photon Energy switches 43.5 MWp of its Hungarian PV portfolio to merchant electricity sales

From 1 April 2022 the Group has temporarily switched all Hungarian PV power plants in its proprietary portfolio receiving support on the basis of KÁT-licenses and METÁR-KÁT-licenses to selling the produced electricity on the Hungarian day-ahead-market to benefit from the currently much higher electricity prices effective from 1 April 2022.

Government Decree No 787/2021 (XII.27.), published in the Hungarian Official Gazette on 27 December 2021, which came into effect on 1 January 2022, allows PV power plants to temporarily exit the support schemes and to return to the respective support scheme at any time after a 12-month-period.

The Group also permanently opted out of six of ten METÁR licenses for its PV power plants in Puspokladány and will be selling the produced electricity on the Hungarian day-ahead-market to benefit from the currently much higher electricity prices.

Photon Energy's portfolio of KÁT- and METÁR-KÁT-licensed PV power plants consists of 51 units with a total installed capacity of 35.0 MWp. The six METÁR-licensed PV power plants which have permanently exited the support scheme have a combined installed capacity of 8.5 MWp and the four METÁR-licensed PV power plants remaining in the support scheme have a total installed capacity of 5.6 MWp.

The Management Board of the Group is convinced that based on the current electricity market outlook for the following 24-36 months this mostly reversible exit from the Hungarian support scheme strongly improves the Group's profitability and maximizes the return on investment on its Hungarian portfolio.

Photon Energy Group Expands its IPP Portfolio to 92 MWp

During the reporting period, the Group completed and grid-connected its second photovoltaic power plant near the municipality of Tolna, Hungary. This latest addition of 1.4 MWp expands the Company's portfolio of proprietary power plants in Hungary to a total of 63, with a combined capacity of 51.8 MWp. Globally, the Company now owns and operates 88 power plants with a combined capacity of 91.9 MWp.

The new power plant extends over 2.8 hectares and uses bi-facial PV modules mounted on single-axis trackers. Connected to the grid of E.ON Dél-dunántúli Áramhálózati Zrt., the installation is expected to generate around 2.1 GWh of clean electricity per year. Given the current market price developments, the original expected revenues of EUR 440,000 in the next 12 months will be significantly outperformed.

The total investment into the development and construction of the power plant was EUR 1.0 million and was financed by the proceeds of Photon Energy Group's 6.50% Green EUR Bond 2021/27, with a placed volume of EUR 65.0 million.

The Company developed the project fully in-house and delivered engineering, procurement and construction services through its subsidiary Photon Energy Solutions HU Kft. Photon Energy Operations HU Kft. – another of the Group's subsidiaries – is providing long-term monitoring, operations and maintenance services to the power plant.

Photon Energy breaks ground on five solar projects in Romania

We are very excited to have broken ground for five Romanian PV power plants with a combined generation capacity of 16.5 MWp. High-efficiency bifacial solar modules mounted on single-axis trackers will deliver around 25.1 GWh of renewable energy annually to the grid. The electricity generated will be sold on the energy market on a merchant basis, without any support or a power purchase agreement with an energy offtaker. The new power plants are scheduled to commence operations in the fourth quarter of 2022.

Those five power plants in Siria, Aiud, and Calafat mark an important step in our efforts to commission a total capacity of around 32 MWp in Romania by the end of 2022. These new assets will expand our IPP (independent power producer) portfolio to over 120 MWp by the end of the year.

Upon the commissioning of these five plants, the Company will own and operate 93 solar power plants with a combined generation capacity of 108.3 MWp as part of its IPP portfolio, of which a combined 96 MWp will be selling clean electricity directly on the energy market.

The Company is currently developing utility-scale PV projects with a combined capacity of over 820 MWp in its key CEE markets and Australia, including 235 MWp in Romania. The remaining project development pipeline in Romania is expected to be built and commissioned in 2023 and 2024 and thus the Romanian market will contribute significantly to the Company's goal of expanding its IPP portfolio to at least 600 MWp globally by the end of 2024.

Photon Energy Share Receives 'Buy' Recommendations from AlsterResearch, WOOD & Company, and IPOPEMA

During the reporting period, the Company's stock has been given a 'buy' recommendation by AlsterResearch, a Hamburg-based research house specialising in small and mid-caps. AlsterResearch views solar as a crucial building block in the decarbonisation of economies and thus expects it to be the fastest growing renewable energy source. Photon Energy Group fits well into this trend, combining strong ESG credentials with transparent reporting and open capital market communications.

Shortly afterwards, the stock has also been given 'Buy' recommendations by Prague-based WOOD & Company, one of the leading brokerage companies in Central and Eastern Europe and IPOPEMA, a Poland-based company engaged in investment banking and brokerage services. An overview of the analysts' recommendations is available on the company's IR page:

Institution	Reco.	Target Price EUR	Target Price PLN		Date
Alster Research	BUY	EUR 4.10*	PLN 18.89	CZK 101	25.04.22
IPOPEMA	BUY	EUR 3.16	PLN 14.58	CZK 78	24.05.22
WOOD & Company	BUY	EUR 3.41	PLN 15.69	CZK 84	25.05.22
Consensus		EUR 3.69	PLN 17.01	CZK 91

* Prices in bold stated by research reports; other currencies included for reference.

Photon Energy successfully taps its 6.50% green bond to EUR 65 million

During the reporting period, the Company successfully tapped its 6.50% Green EUR Bond 2021/2027 (ISIN: DE000A3KWKY4) in the amount of EUR 10 million to a total outstanding amount of EUR 65 million. The bond tap was met with strong demand from the Company's existing bondholders including the European Bank for Reconstruction and Development ('EBRD') as well as numerous new institutional investors across Europe.

The green bond with a maturity in 2027 and an interest rate of 6.50% p.a., paid quarterly has been graded by imug | rating with regard to its sustainability by way of a Secondary Party Opinion,

and is trading on the Open Market of the Frankfurt Stock Exchange since 23 November 2021.

Bankhaus Scheich Wertpapierspezialist AG, Frankfurt am Main, has acted as Sole Global Coordinator & Bookrunner for the bond placement. Multinational law firm Pinsent Masons has acted as legal advisor to the transaction.

2.2 Strategy and its execution

The Group's focus for future growth lays on the established Australian and Hungarian markets and the newly added Polish and Romanian markets for the expansion of PV generation capacity. Further markets in Central Europe, Central and South America, the Middle East, and Africa remain under the Group's investigation.

The Group also intends to continue to disrupt and transform the PV industry. This is illustrated by the recent strategic investments concluded with RayGen, a company specialized in high efficiency concentrated PV generation with thermal absorption and storage, and with Lerta at the end of the reporting period, developing Virtual Power Plant technologies and energy market services.

In addition, the Group's focus remains on the expansion of operations & maintenance (O&M) solutions in Central Europe and Australia and selective entry to new markets following its customers, and the development of various water treatment technologies and the preparation for their commercialization.

The Group's strategic goals include:

• ► An increase in the production of clean energy by expanding the Group's global electricity generation capacity of the proprietary portfolio of photovoltaic power plants;
• ► the acquisition of new PV projects to develop, design and construct them for the proprietary portfolio supporting the

The Company intends to use the net proceeds of the green bond placement to finance or refinance, in part or in whole, new and/or existing eligible assets, as well as financial instruments that were used to finance such projects or assets, in accordance with the Company's Green Finance Framework, enabling Photon Energy Group to make a significant contribution to an environmentally friendly future.

growth of recurring revenue streams from clean electricity generation with a clear focus on Australia, Hungary, Poland and Romania;

• ► the expansion of the PPA-business and construction of commercial "behind-the-meter" PV projects for industrial customers and off-takers in Australia and in Europe;
• ► the Group intends to compete for PV projects, which aim to address the needs for provision of clean energy in locations which require a tailor-made approach to design complete energy systems, which would combine generation of clean energy with energy storage solutions; such PV projects require an integrated approach in the application of PV technology;
• ► the provision of O&M services allowing PV power plants to run smoothly at high generation levels and increasing revenues while reducing risks for the Group's customers;
• ► the procurement and trading of PV components through cooperation with PV technology manufacturers; and
• ► the remediation of contaminated sites and ground water pollution deploying water treatment technologies with a focus on PFAS nano-remediation solutions.

2.4 Proprietary portfolio, generation results and O&M services

Proprietary portfolio

The table below presents the portfolio of operating power plants owned directly or indirectly by Photon Energy N.V. at the end of the reporting period i.e. as of 30 June 2022, consisting of 88 power plants in the Czech Republic, Slovakia, Hungary and Australia with a total installed capacity of 91.9 MWp.

More information on the Group structure can be found in chapter 10. Group structure.

Table 1. The proprietary portfolio of Photon Energy N.V. as of 30 June 2022

Nr Proprietary portfolio	Legal entity	Country	Cap. (kWp)	Share	Cap. Pro-rata (kWp)	Completed
1 Komorovice	Exit 90 s.r.o.	CZ	2,354	100%	2,354	Dec-10
2 Zvíkov I	Photon SPV8 s.r.o.	CZ	2,031	100%	2,031	Nov-10
3 Dolní Dvořiště	Photon SPV10 s.r.o.	CZ	1,645	100%	1,645	Dec-10
4 Svatoslav	Photon SPV4 s.r.o.	CZ	1,231	100%	1,231	Dec-10
5 Slavkov	Photon SPV6 s.r.o.	CZ	1,159	100%	1,159	Dec-10
6 Mostkovice SPV 1	Photon SPV1 s.r.o.	CZ	210	100%	210	Dec-10
7 Mostkovice SPV 31	Photon SPV3 s.r.o.	CZ	926	100%	926	Dec-09
8 Zdice I	Onyx Energy I s.r.o.	CZ	1,499	100%	1,499	Dec-10
9 Zdice II	Onyx Energy projekt II s.r.o.	CZ	1,499	100%	1,499	Dec-10
10 Radvanice	Photon SPV11 s.r.o.	CZ	2,305	100%	2,305	Dec-10
11 Břeclav rooftop	Photon SPV1 s.r.o.	CZ	137	100%	137	Dec-10
12 Babiná II	Sun4Energy ZVB s.r.o.	SK	999	100%	999	Dec-10
13 Babina III	Sun4Energy ZVC s.r.o.	SK	999	100%	999	Dec-10
14 Prša I.	Fotonika s.r.o.	SK	999	100%	999	Dec-10
15 Blatna	ATS Energy s.r.o.	SK	700	100%	700	Dec-10
16 Mokra Luka 1	EcoPlan 2 s.r.o.	SK	963	100%	963	Jun-11
17 Mokra Luka 2	EcoPlan 3 s.r.o.	SK	963	100%	963	Jun-11
18 Jovice 1	Photon SK SPV2 s.r.o.	SK	979	100%	979	Jun-11
19 Jovice 2	Photon SK SPV3 s.r.o.	SK	979	100%	979	Jun-11
20 Brestovec	Photon SK SPV1 s.r.o.	SK	850	50%	425	Jun-11
21 Polianka	Solarpark Polianka s.r.o.	SK	999	50%	500	Jun-11
22 Myjava	Solarpark Myjava s.r.o.	SK	999	50%	500	Jun-11
23 Symonston	Photon Energy AUS SPV 1 Pty. Ltd.	AUS	144	100%	144	Feb-13
24 Leeton	Leeton Solar Farm Pty Ltd	AUS	7,261	100%	7,261	Aug-21
25 Fivebough	Fivebough Solar Farm Pty Ltd	AUS	7,261	100%	7,261	Aug-21
26 Tiszakécske 1	Ekopanel Befektetési Kft.	HU	689	100%	689	Dec-18
27 Tiszakécske 2	Onyx-sun Kft.	HU	689	100%	689	Dec-18
28 Tiszakécske 3	Solarkit Befektetesi Kft.	HU	689	100%	689	Dec-18
29 Tiszakécske 4	Energy499 Invest Kft.	HU	689	100%	689	Dec-18
30 Tiszakécske 5	Green-symbol Invest Kft.	HU	689	100%	689	Dec-18
31 Tiszakécske 6	Montagem Befektetési Kft.	HU	689	100%	689	Dec-18
32 Tiszakécske 7	SunCollector Kft.	HU	689	100%	689	Dec-18
33 Tiszakécske 8	Future Solar Energy Kft.	HU	689	100%	689	Dec-18
34 Almásfüzitő 1	Rácio Master Kft.	HU	695	100%	695	Mar-19
35 Almásfüzitő 2	Rácio Master Kft.	HU	695	100%	695	Mar-19
36 Almásfüzitő 3	Rácio Master Kft.	HU	695	100%	695	Mar-19
37 Almásfüzitő 4	Rácio Master Kft.	HU	695	100%	695	Mar-19
38 Almásfüzitő 5	Rácio Master Kft.	HU	695	100%	695	Mar-19
39 Almásfüzitő 6	Rácio Master Kft.	HU	660	100%	660	Mar-19
40 Almásfüzitő 7	Rácio Master Kft.	HU	691	100%	691	Mar-19
41 Almásfüzitő 8	Rácio Master Kft.	HU	668	100%	668	Mar-19
42 Nagyecsed 1	Photon Energy Solutions HU Kf	HU	689	100%	689	Jul-19
43 Nagyecsed 2	Photon Energy Solutions HU Kf	HU	689	100%	689	Jul-19
44 Nagyecsed 3	Photon Energy Solutions HU Kf	HU	689	100%	689	Jul-19
45 Fertőd I No 1	Fertöd Napenergia-Termelö Kft.	HU	528	100%	528	Mar 18

Nr Proprietary portfolio	Legal entity	Country	Cap. (kWp)	Share	Cap. Pro-rata (kWp)	Completed
46 Fertőd II No 2	Photon Energy HU SPV 1 Kft	HU	699	100%	699	Nov-19
47 Fertőd II No 3	Photon Energy HU SPV 1 Kft.	HU	699	100%	699	Nov-19
48 Fertőd II No 4	Alfemo Alpha Kft.	HU	699	100%	699	Nov-19
49 Fertőd II No 5	Ráció Master Kft.	HU	691	100%	691	Nov-19
50 Fertőd II No 6	Photon Energy HU SPV 1 Kft.	HU	699	100%	699	Nov-19
51 Kunszentmárton I No 1	Ventiterra Kft.	HU	697	100%	697	Nov-19
52 Kunszentmárton I No 2	Ventiterra Kft.	HU	697	100%	697	Nov-19
53 Kunszentmárton II No 1	Ventiterra Alpha Kft.	HU	693	100%	693	May-20
54 Kunszentmárton II No 2	Ventiterra Beta Kft.	HU	693	100%	693	May-20
55 Taszár 1	Optisolar Kft.	HU	701	100%	701	Dec-19
56 Taszár 2	Optisolar Kft.	HU	701	100%	701	Dec-19
57 Taszár 3	Optisolar Kft.	HU	701	100%	701	Dec-19
58 Monor 1	Photon Energy HU SPV 1 Kft.	HU	688	100%	688	Oct-19
59 Monor 2	Photon Energy HU SPV 1 Kft.	HU	696	100%	696	Oct-19
60 Monor 3	Photon Energy HU SPV 1 Kft.	HU	696	100%	696	Oct-19
61 Monor 4	Photon Energy HU SPV 1 Kft.	HU	696	100%	696	Oct-19
62 Monor 5	Photon Energy HU SPV 1 Kft.	HU	688	100%	688	Oct-19
63 Monor 6	Photon Energy HU SPV 1 Kft.	HU	696	100%	696	Oct-19
64 Monor 7	Photon Energy HU SPV 1 Kft.	HU	696	100%	696	Oct-19
65 Monor 8	Photon Energy HU SPV 1 Kft.	HU	696	100%	696	Oct-19
66 Tata 1	Tataimmo Kft.	HU	672	100%	696	Mar-20
67 Tata 2	ALFEMO Beta Kft.	HU	676	100%	696	Mar-20
68 Tata 3	ALFEMO Gamma Kft.	HU	667	100%	696	Feb-20
69 Tata 4	Tataimmo Kft.	HU	672	100%	696	Mar-20
70 Tata 5	Öreghal Kft.	HU	672	100%	696	Mar-20
71 Tata 6	Tataimmo Kft.	HU	672	100%	696	Feb-20
72 Tata 7	European Sport Contact Kft.	HU	672	100%	696	Feb-20
73 Tata 8	Tataimmo Kft.	HU	672	100%	696	Mar-20
74 Malyi 1	Zuggo - Dulo Kft.	HU	695	100%	695	May-20
75 Malyi 2	Egespart Kft.	HU	695	100%	695	May-20
76 Malyi 3	Zemplenimpex Kft.	HU	695	100%	695	May-20
77 Püspökladány1	Ladány Solar Alpha Kft.	HU	1,406	100%	1,406	Nov-20
78 Püspökladány 2	Ladány Solar Alpha Kft.	HU	1,420	100%	1,420	Oct-20
79 Püspökladány 3	Ladány Solar Alpha Kft.	HU	1,420	100%	1,420	Oct-20
80 Püspökladány 4	Ladány Solar Beta Kft.	HU	1,406	100%	1,406	Oct-20
81 Püspökladány 5	Ladány Solar Beta Kft.	HU	1,420	100%	1,420	Oct-20
82 Püspökladány 6	Ladány Solar Beta Kft.	HU	1,394	100%	1,394	Oct-20
83 Püspökladány 7	Ladány Solar Gamma Kft.	HU	1,406	100%	1,406	Nov-20
84 Püspökladány 8	Ladány Solar Gamma Kft.	HU	1,420	100%	1,420	Oct-20
85 Püspökladány 9	Ladány Solar Delta Kft.	HU	1,406	100%	1,406	Oct-20
86 Püspökladány 10	Ladány Solar Delta Kft.	HU	1,420	100%	1,420	Oct-20
87 Tolna 1	Barbican Solar Kft.	HU	1,358	100%	1,358	Dec-21
88 Tolna 2	Hampstead Solar Kft.	HU	1,358	100%	1,358	May-22
Total			91,905

Photon SPV 3 owns two power plants: Mostkovice SPV 3 (795 kWp) and Mostkovice SPV3R (131 kWp).

Generation results

The cumulative generation results of the power plants in the portfolio connected and feeding electricity to the grid in Q2 2022 amounted to 39.3 GWh, which was 21.2% higher YOY and 1.5% above energy forecasts. This represents an avoidance of 14,758

tonnes of CO² emissions in Q2 2022, compared to 12,983 tonnes in Q2 2021. Detailed generation results for each power plant are published on a monthly basis in our monthly reports.

Table 2. Generation results versus projections between 1 April and 30 June 2022

Project name	Capacity	AVG revenue (EUR)	Prod. Q2 2022	Proj. Q2 2022		Perf. YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh	kWh	kWh	%	kWh	kWh	%	kWh
Komorovice	2,354	748 EUR	939,612	926,103	1.5%	1,431,436	1,317,138	8.7%	18.1%
Zvíkov I	2,031	745 EUR	800,000	824,026	-2.9%	1,275,934	1,216,039	4.9%	10.8%
Dolní Dvořiště	1,645	749 EUR	578,295	604,414	-4.3%	891,908	867,070	2.9%	4.7%
Svatoslav	1,231	748 EUR	452,035	445,809	1.4%	673,654	622,602	8.2%	14.2%
Slavkov	1,159	748 EUR	500,886	496,220	0.9%	789,868	710,543	11.2%	13.7%
Mostkovice SPV 1	210	747 EUR	84,087	82,917	1.4%	130,696	117,730	11.0%	17.1%
Mostkovice SPV 3*	926	794 EUR	381,124	370,887	2.8%	588,413	521,624	12.8%	15.8%
Zdice I	1,499	746 EUR	637,341	626,388	1.7%	968,687	898,198	7.8%	13.4%
Zdice II	1,499	746 EUR	644,968	635,496	1.5%	984,524	911,355	8.0%	12.1%
Radvanice	2,305	748 EUR	956,440	949,114	0.8%	1,471,240	1,331,354	10.5%	17.1%
Břeclav rooftop	137	749 EUR	59,330	57,509	3.2%	93,566	84,036	11.3%	13.4%
Total Czech PP1	14,996		6,034,116	6,018,884	0.3%	9,299,925	8,597,689	8.2%	13.5%
Babiná II	999	271 EUR	379,465	358,354	5.9%	564,602	497,450	13.5%	11.9%
Babina III	999	271 EUR	376,150	360,924	4.2%	560,320	504,495	11.1%	7.8%
Prša I.	999	270 EUR	386,966	383,195	1.0%	588,442	540,171	8.9%	16.0%
Blatna	700	273 EUR	282,576	269,841	4.7%	410,200	373,744	9.8%	9.3%
Mokra Luka 1	963	258 EUR	420,436	372,733	12.8%	701,253	576,730	21.6%	15.1%
Mokra Luka 2	963	257 EUR	421,693	398,806	5.7%	713,464	610,250	16.9%	14.8%
Jovice 1	979	263 EUR	335,953	321,900	4.4%	508,334	452,985	12.2%	14.5%
Jovice 2	979	263 EUR	334,112	316,188	5.7%	504,135	445,612	13.1%	14.1%
Brestovec	850	257 EUR	370,411	365,877	1.2%	597,467	533,597	12.0%	22.8%
Polianka	999	261 EUR	374,544	364,776	2.7%	558,429	504,202	10.8%	12.7%
Myjava	999	259 EUR	401,052	413,666	-3.0%	642,192	584,396	9.9%	10.5%
Total Slovak PP	10,429		4,083,357	3,926,260	4.0%	6,348,838	5,623,633	12.9%	13.6%
Tiszakécske 1	689	194 EUR	310,144	290,748	6.7%	495,213	441,578	12.1%	9.5%
Tiszakécske 2	689	194 EUR	310,929	291,152	6.8%	498,319	444,198	12.2%	9.5%
Tiszakécske 3	689	194 EUR	307,254	288,789	6.4%	480,042	433,038	10.9%	8.7%
Tiszakécske 4	689	194 EUR	306,557	291,152	5.3%	495,094	444,198	11.5%	8.5%
Tiszakécske 5	689	194 EUR	310,296	290,748	6.7%	495,789	441,578	12.3%	11.9%
Tiszakécske 6	689	194 EUR	310,112	291,152	6.5%	496,552	444,198	11.8%	9.6%
Tiszakécske 7	689	194 EUR	310,312	290,652	6.8%	497,475	441,324	12.7%	9.6%
Tiszakécske 8	689	194 EUR	305,640	290,321	5.3%	488,789	439,986	11.1%	8.4%
Almásfüzitő 1	695	191 EUR	315,915	289,907	9.0%	487,202	440,887	10.5%	9.3%
Almásfüzitő 2	695	190 EUR	307,850	289,788	6.2%	472,993	440,597	7.4%	8.9%
Almásfüzitő 3	695	191 EUR	305,360	289,326	5.5%	475,345	438,643	8.4%	9.6%
Almásfüzitő 4	695	191 EUR	316,563	290,264	9.1%	488,167	441,797	10.5%	9.1%
Almásfüzitő 5	695	191 EUR	318,182	289,478	9.9%	497,496	439,273	13.3%	9.6%
Almásfüzitő 6	660	191 EUR	317,292	278,976	13.7%	493,188	423,102	16.6%	9.2%
Almásfüzitő 7	691	191 EUR	317,073	287,953	10.1%	491,498	436,812	12.5%	9.3%
Almásfüzitő 8	668	187 EUR	301,847	281,781	7.1%	474,118	427,913	10.8%	5.0%
Nagyecsed 1	689	197 EUR	307,145	289,276	6.2%	476,179	434,699	9.5%	7.8%
Nagyecsed 2	689	197 EUR	305,437	289,276	5.6%	473,676	434,699	9.0%	6.9%
Nagyecsed 3	689	197 EUR	307,496	289,803	6.1%	478,496	435,028	10.0%	7.7%
Fertod I	528	188 EUR	242,187	216,770	11.7%	380,757	326,472	16.6%	7.6%
Fertod II No 2	699	190 EUR	300,667	293,434	2.5%	493,195	442,570	11.4%	10.3%
Fertod II No 3	699	190 EUR	297,324	293,434	1.3%	489,868	442,570	10.7%	6.3%

Project name	Capacity	AVG revenue (EUR)	Prod. Q2 2022	Proj. Q2 2022		Perf. YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh	kWh	kWh	%	kWh	kWh	%	kWh
Fertod II No 4	699	189 EUR	294,591	293,434	0.4%	487,114	442,570	10.1%	7.0%
Fertod II No 5	691	190 EUR	296,579	294,183	0.8%	487,759	445,659	9.4%	6.6%
Fertod II No 6	699	190 EUR	295,795	293,434	0.8%	487,832	442,570	10.2%	6.8%
Kunszentmárton I No 1	697	193 EUR	317,777	303,851	4.6%	512,201	460,220	11.3%	8.0%
Kunszentmárton I No 2	697	193 EUR	318,446	303,865	4.8%	507,931	460,279	10.4%	7.9%
Kunszentmárton II No 1	693	194 EUR	318,318	298,729	6.6%	513,937	434,842	18.2%	6.7%
Kunszentmárton II No 2	693	194 EUR	321,822	298,729	7.7%	516,874	435,138	18.8%	7.1%
Taszár 1	701	191 EUR	291,816	301,500	-3.2%	491,096	463,158	6.0%	5.6%
Taszár 2	701	192 EUR	298,917	301,500	-0.9%	498,591	463,158	7.7%	7.3%
Taszár 3	701	192 EUR	300,273	301,500	-0.4%	499,627	463,158	7.9%	7.2%
Monor 1	688	194 EUR	309,481	295,656	4.7%	504,963	445,334	13.4%	8.2%
Monor 2	696	194 EUR	306,939	299,529	2.5%	497,106	453,974	9.5%	7.7%
Monor 3	696	194 EUR	309,843	299,529	3.4%	504,553	453,974	11.1%	9.5%
Monor 4	696	193 EUR	310,343	299,529	3.6%	504,398	453,974	11.1%	8.6%
Monor 5	688	194 EUR	309,530	292,967	5.7%	504,534	443,958	13.6%	8.6%
Monor 6	696	193 EUR	309,153	299,529	3.2%	504,537	453,974	11.1%	8.8%
Monor 7	696	194 EUR	309,836	299,529	3.4%	502,663	453,974	10.7%	8.1%
Monor 8	696	194 EUR	310,939	299,529	3.8%	506,671	453,974	11.6%	9.4%
Tata 1	672	198 EUR	358,661	349,169	2.7%	523,917	489,155	7.1%	8.9%
Tata 2	676	191 EUR	299,580	290,976	3.0%	468,064	438,996	6.6%	9.9%
Tata 3	667	191 EUR	299,138	286,427	4.4%	468,461	429,371	9.1%	10.1%
Tata 4	672	197 EUR	364,098	356,435	2.2%	533,727	500,487	6.6%	10.0%
Tata 5	672	198 EUR	361,331	357,434	1.1%	529,282	502,089	5.4%	19.5%
Tata 6	672	198 EUR	343,005	352,568	-2.7%	510,003	494,501	3.1%	5.4%
Tata 7	672	198 EUR	361,247	349,366	3.4%	526,926	489,468	7.7%	9.0%
Tata 8	672	198 EUR	364,480	354,001	3.0%	534,598	496,680	7.6%	9.2%
Malyi 1	695	197 EUR	295,384	294,675	0.2%	474,626	436,925	8.6%	6.9%
Malyi 2	695	195 EUR	312,520	294,959	6.0%	493,260	437,465	12.8%	10.9%
Malyi 3	695	195 EUR	312,984	294,959	6.1%	494,148	437,465	13.0%	11.1%
Püspökladány 1	1,406	91 EUR	750,385	706,983	6.1%	1,107,556	995,769	11.2%	5.0%
Püspökladány 2	1,420	207 EUR	768,900	694,807	10.7%	1,144,185	967,237	18.3%	6.5%
Püspökladány 3	1,420	206 EUR	755,985	681,338	11.0%	1,121,709	946,278	18.5%	6.0%
Püspökladány 4	1,406	205 EUR	749,988	702,518	6.8%	1,114,253	989,470	12.6%	5.7%
Püspökladány 5	1,420	206 EUR	764,232	693,618	10.2%	1,140,648	965,312	18.2%	5.8%
Püspökladány 6	1,394	91 EUR	745,669	700,002	6.5%	1,107,660	978,656	13.2%	6.0%
Püspökladány 7	1,406	91 EUR	747,606	702,179	6.5%	1,111,745	988,932	12.4%	5.7%
Püspökladány 8	1,420	206 EUR	753,584	683,073	10.3%	1,119,422	948,906	18.0%	5.7%
Püspökladány 9	1,406	91 EUR	749,422	701,838	6.8%	1,113,222	988,401	12.6%	12.2%
Püspökladány 10	1,420	206 EUR	754,058	680,808	10.8%	1,120,085	945,470	18.5%	6.0%
Tolna 1	1,358	198 EUR	772,682	768,837	0.5%	1,156,516	1,102,759	4.9%	na
Tolna 2	1,358	206 EUR	538,652	514,595	4.7%	538,652	514,595	4.7%	na
Total Hungarian PP	51,814		24,785,571	23,482,263	5.6%	38,104,503	34,143,436	11.6%	13.0%
Symonston	144	235 EUR	25,072	26,709	-6.1%	71,972	82,888	-13.2%	-11.9%
Leeton	7,261	169 EUR	2,219,650	2,658,640	-16.5%	6,136,120	6,913,260	-11.2%	na
Fivebough	7,261	172 EUR	2,167,820	2,609,885	-16.9%	6,059,900	6,823,710	-11.2%	na
Total Australian PP	14,666		4,412,542	5,295,234	-16.7%	12,267,992	13,819,858	-11.2%	nm
Total	91,905		39,315,586	38,722,640		1.5% 66,021,258	62,184,617	6.2%	38.7%

Notes: * Total result for Mostkovice SPV 3 and Mostkovice SPV 3R, as the same company "SPV3" owns both power plants.

1 - Green Bonus + realized electricity price during the reporting period in the Czech Republic.

- Realized electricity price in Hungary.

- Realized electricity price + Australian Large-scale Generation Certificate spot closing price in Australia.

Chart 1.a Total production of the Czech portfolio Chart 1.b Total production of the Slovak portfolio

O&M services

Photon Energy remained focused on delivering Operations & Maintenance services. As of the end of Q2 2022, full O&M services contracts amounted to approximately 250.3 MWp (+1.3% YOYD). This can be broken down geographically into 94.9 MWp operated in the Czech Republic, 102.1 MWp in Hungary, 15.3 MWp in Slovakia, 24.1 MWp in Australia, 4.0 MWp in Romania and 9.9 MWp in Poland. The O&M portfolio divides into 158.4 MWp serviced for external clients and 91.9 MWp of PV capacity from the proprietary portfolio.

As far as the "Inverter Cardio" services contracts are concerned, the Group is servicing 60.2 MWp of central inverters (-3.2% compared to Q2 2021). In detail, at the end of Q2 2022, the total capacity of central inverters serviced can be divided regionally into 18.3 MWp in France, 6.0 MWp in Italy, 9.7 MWp in Belgium, 17.0

2.5 Reporting on Photon Energy's project pipeline

Project development is a crucial activity in Photon Energy's business model of covering the entire value chain of PV power plants. The main objective of project development activities is to expand the PV proprietary portfolio, which provides recurring revenues and free cash flows to the Group. For financial or strategic reasons Photon Energy may decide to cooperate with third-party investors either on a joint-venture basis or with the goal of exiting the projects to such investors entirely. Ownership of project rights provides Photon Energy with a high level of control and allows locking in EPC (one-off) and O&M (long-term) services. Hence, project development is a key driver for Photon Energy's future growth. The

Chart 1.c Total production of the Hungarian portfolio Chart 1.d Total production of the Australian portfolio

MWp in the Czech Republic, 5.5 MWp in Slovakia, 2.0 MWp in Slovenia and 1.8 MWp in Germany. In some countries like France or Germany the Group is holding a leading market position while in Belgium in particular, the Group is servicing all of the Satcon inverters ever installed.

After the end of the reporting period, the conclusion of full O&M services contracts in Hungary (+16.8 MWp) brought the total capacity under O&M contract (full O&M services and Inverter Cardio services contracts) to 327.3 MWp (vs. 310.5 MWp as of 30 June 2022).

Group's experience in project development and financing in the Czech Republic, Slovakia, Germany, Italy and Hungary is an important factor in selecting attractive markets and reducing the inherent risks related to project development.

Photon Energy is currently developing PV projects in Australia (300.0 MWp), Hungary (25.8 MWp), Romania (235.4 MWp) and Poland (263.9 MWp) and is evaluating further markets for opportunities.

Country	1. Feasibility*	2. Early development	3. Advanced development	4. Ready-to-build technical	5. Under construction	Total in MWp
Romania	33.2	81.5	87.9	16.3	16.5	235.4
Poland	234.0	29.9	-	-	-	263.9
Hungary	-	23.1	2.7	-	-	25.8
Australia	-	300.0	-	-	-	300.0
Total in MWp	267.2	434.5	90.6	16.3	16.5	825.1

*Development phases are described in the glossary available at the end of this chapter.

PV projects have two definitions of capacity. The grid connection capacity is expressed as the maximum of kilowatts or megawatts which can be fed into the grid at any point in time. Electricity grids run on alternating current (AC). Solar modules produce direct current (DC), which is transformed into AC by inverters. Heat, cable lines, inverters and transformers lead to energy losses in the system be-tween the solar modules and the grid connection point. Cumulatively system losses typically add up to 15-20%. Therefore, for a given grid connection capacity a larger module capacity (expressed in Watt peak – Wp) can be installed without exceeding the grid connection limit. At times of extremely high production, inverters can reduce the volume of electricity so that the plant stays within the grid connection limits. Photon Energy will refer to the installed DC capacity of projects expressed in Megawatt peak (MWp) in its reporting, which might fluctuate over the project development process.

Projects having reached an advanced development phase, as well as projects for which sufficient details can be disclosed are described in the table below:

Country	Location	Dvt Phase	Project function	Share	MWp	Commercial Model	Land	Grid con nection	Construction permit	Expected RTB
Romania	Siria	5	Own portfolio	100%	5.7	Merchant/PPA	Secured	Secured	Secured	Under con struction
Romania	Aiud	5	Own portfolio	100%	4.7	Merchant/PPA	Secured	Secured	Secured	Under con struction
Romania	Calafat	5	Own portfolio	100%	6.1	Merchant/PPA	Secured	Secured	Secured	Under con struction
Romania	Teius	3	Own portfolio	100%	4.7	Merchant/PPA	Secured	Ongoing	Secured	Q3 2022
Romania	Sahateni	3	Own portfolio	100%	12.0	Merchant/PPA	Secured	Secured	Secured	Q3 2022
Hungary	Tolna 3-4	3	Own portfolio	100%	2.7	Merchant/PPA	Secured	Secured	Secured	Q2 2022
Hungary	Tolna 5-13	2	Own portfolio	100%	23.1	Merchant/PPA	Ongoing	Secured	Secured	Q3 2022
Australia	Yadnarie	2	All options open	100%	300.0	All options open	Secured	Ongoing	Ongoing	Q4 2023

Australia

During the reporting period, Photon Energy had one large scale solar farm under development.

In November 2021, the Group secured 1,200 hectares of land in South Australia to develop a 300 MWp solar farm suitable for Ray-Gen's solar technology in combination with its energy storage solution.

► Development status Raygen project (300 MWp): Based on preliminary designs, Photon Energy will develop a solar generation capacity of 300 MWp with a grid connection capacity of 150 MW. The target storage energy storage capacity is 3.6 GWh, equivalent to 24 hours of full load, to the grid, from storage. This will exceed the 3 GWh capacity of the Ouarzazate Solar Power Station in Morocco, which currently has the world's largest energy storage capacity of any type, excluding pumped hydro.

The project received Crown Sponsorship from the South Australian Government for development approval. Crown Sponsorship is a development process undertaken directly with, in this case, the Department of Energy and Mining, as a development of public infrastructure under section 49(2)(c) of the Development Act 1993 for the approval of the project with the South Australian Government. The proposed development complies with the requirements of the Technical Regulator in relation to the security and stability of the State's power system. In parallel, Photon Energy has applied for grid connection for the project to the Electranet transmission network and has engaged a grid connection consultant to manage the process and conduct Grid Performance Studies which will be submitted for approval.

In Q1 2022, Photon Energy conducted already Community consultation sessions with very positive response from both the community and the local council. The local council is very supportive of the project and has expressed interest in working with Photon Energy on accommodation and local supply chain in any areas that will be mutually beneficial to both the local community and the project.

Hungary

Below is a short summary of projects and progress achieved in the reporting period.

► Tolna 3-13 projects (25.8 MWp under development, 1.4 MWp commissioned on 9 December 2021 and 1.4 MWp commissioned on 5 May 2022): The thirteen projects with a total planned installed DC capacity of 28.6 MWp are located in the Tolna region in the south of Hungary. Two power plants have a grid connection capacity of 5.0 MW AC each, whereas 1 MW AC have been secured for each of the remaining eleven projects. The grid connection points have been secured and the negotiations for suitable land plots have been finalized for several projects. Grid connection plans have been initiated and already partially approved, to allow us to conclude grid connection agreements with E.ON. with a validity of two years.

On 8 December 2020, one of the 1MW AC (approx. 1.4 MWp DC) projects was granted a METAR premium of 24,470 HUF/MWh (approx. EUR 68 per MWh) with a maximum supported production of 21,585 MWh over a period of up to 15 years. This achievement results from the approval of the project application to the first pilot tender for the METAR system organized in September 2019. Outside this project, two power plants have been constructed and commissioned to date, with a third one in advanced development after securing the binding extraction and construction permits.

The revenue model will be the direct sale of electricity through a trader on the Hungarian electricity market for the time being. Entering into a contract-for-difference based on a METÁR license (for the project that has proven successful through the auction process) or entering into PPAs in the future, remain possible options. Construction plans include the use of tracking technology allowing bi-facial solar modules to follow the course of the sun, which are expected to achieve a 15-20% higher specific performance than fixed installations.

On 9 December 2021, we completed and grid-connected the first photovoltaic power plant with a capacity of 1.4 MWp near the municipality of Tolna.

On 5 May 2022, we completed and grid-connected the second photovoltaic power plant with a capacity of 1.4 MWp near Tolna.

These latest additions expand the Company's portfolio of proprietary power plants in Hungary to a total of 63, with a combined capacity of 51.8 MWp.

The two power plants represent the first European utilityscale PV power plants in Photon Energy Group's IPP portfolio that the Company operates without a support scheme. The total annual production of each power plant is expected to be around 2.1 GWh, which corresponds to expected annual revenues of EUR 440,000 based on current forward prices for electricity base load in Hungary.

Each of these new power plants extends over 2.2 hectares, uses bi-facial PV modules mounted on single-axis trackers and is connected to the grid of E.ON Dél-dunántúli Áramhálózati Zrt..

The electricity is sold on the national electricity market on a merchant basis. This means no power purchase agreements (PPAs) have been entered into by the Company. However, they may play a role in the plant's future revenue management strategy, alongside other hedging options.

The Company developed the projects fully in-house and delivered engineering, procurement and construction services through its subsidiary Photon Energy Solutions HU Kft. Photon Energy Operations HU Kft. – another of the Group's subsidiaries – will provide long-term monitoring, operations and maintenance services to the power plants.

Romania

Below is a short summary of projects and progress achieved in the reporting period and before the publication of this report:

► Siria (5.7 MWp) project:

In June 2022, the Company broke ground on the construction of its very first Romanian PV power plant with a generation capacity of 5.7 MWp. High efficiency bifacial solar modules mounted on single-axis trackers will deliver around 8.7 GWh of renewable energy annually to the grid of Enel E-Distributie Banat. Located near Șiria in Romania's Arad County, the power plant will extend over 9.3 hectares of greenfield land and will be equipped with some 10,600 solar panels.

► Aiud (4.7 MWp) project:

In July 2022, the Company announced that it started the construction of its second Romanian PV power plant in Aiud with a capacity of 4.7 MWp and an expected annual generation of 6.8 GWh that will be delivered to the grid of Distribuție Energie Electrică Romania. Located near Aiud in Romania's Alba County, the power plant will extend over 6.6 hectares of greenfield land and will be equipped with around 8,700 solar panels.

► Calafat (6.1 MWp) project:

In July 2022, the Company announced that it started the construction of another three Romanian PV power plants in Calafat with a combined capacity of 6.1 MWp and an expected annual generation of 9.6 GWh that will be delivered to the grid of Distribuție Energie Oltenia.

The five power plants are scheduled to commence operations in the fourth quarter of 2022 and to sell electricity on the energy market on a merchant basis, that is without any support or a power purchase agreement with an energy offtaker.

Upon the commissioning of these plants, the Company will own and operate 93 solar power plants with a combined generation capacity of 108.3 MWp in its IPP portfolio. A combined 92 MWp will be selling subsidy-free clean electricity directly on the energy market.

The Company is currently developing utility-scale solar PV projects with a combined capacity of 235.4 MWp in Romania. The remaining project development pipeline is expected to be built and commissioned in 2023 and 2024 and thus the Romanian market will significantly contribute to the Company's goal of expanding its IPP portfolio to at least 600 MWp globally by the end of 2024.

All projects to be built in Romania will be selling electricity after grid connection on a merchant basis into the grid.

Glossary of terms	Definitions
Development phase 1: "Feasibility"	LOI or MOU signed, location scouted and analyzed, working on land lease/purchase, environmental assessment and applica tion for grid connection.
Development phase 2: "Early development"	Signing of land option, lease or purchase agreement, Environmental assessment (environmental impact studies "EIS" for Aus tralia), preliminary design. Specific to Europe: Application for Grid capacity, start work on permitting aspects (construction, connection line, etc.). Specific to Australia: community consultation, technical studies.
Development phase 3: "Advanced development"	In Europe: Finishing work on construction permitting, Receiving of MGT (HU)/ATR (ROM) Letter, Finishing work on permitting for connection line, etc. In Australia: Site footprint and layout finalised, Environmental Impact Statement and development application lodged. Grid connection studies and design submitted.
Development phase 4: "Ready-to-build technical"	In Europe: Project is technical ready to build, we work on offtake model (if not FIT or auction), securing financing (internal/ex ternal). In Australia: Development application approved, offer to connect to grid received and detailed design commenced. Financing and off-take models/arrangements (internal/external) under negotiation.
Development phase 5: "Under construction"	Procurement of components, site construction until the connection to the grid. On top for Australian projects, signature of Financing and off-take agreements, reception of Construction certificate, conclusion of connection agreement, EPC agree ment, Grid connection works agreements.
NSW Department for Planning and Environment (DP&E)	NSW DP&E is a government agency in charge of planning and development of New South Wales, to ensure the balance between the commercial business development and the needs of local communities. Each project submitted to DP&E must include environmental impact studies (EIS) and once it is reviewed by DP&E, the project is published and available for the public opinion to submit their comments. If the project is rejected by more than 25 people it is moved to Independent Planning Committee (IPC) for review. If there is no public opposition, the project is approved and DP&E issues the project Development Approval (DA)
Independent Planning Com mittee (IPC)	In case more than 25 public petitions against the project are submitted, IPC needs to investigate further into social and envi ronmental impact of the project. IPC might make some recommendations to be made to the project plan to secure the issuance of DA.
Essential Energy	Essential Energy is Distribution Network Service Provider, which operates and manages low voltage electricity network in NSW. The process to secure the grid connection with Essential Energy includes GPS and AEMO's license.
Transgrid	Transgrid is a Distribution Network Service Provider (DNSP), which operates and manages the NSW high voltage transmission network. Transgrid, in co-operation with Australian Energy Market Operator (AEMO, see description below), is in charge of grid connection approval. To issue its decision Transgrid requires Generation Protection Studies (GPS). GPS is a complete analysis and tests of the impact that a potential power plant would have on the grid. Each power plant is tested under different assumptions (extreme weather conditions, demand/supply changes etc.) and its performance/impact on the grid's stability is thoroughly analysed. Once GPS are completed and accepted, Transgrid is issuing grid connection terms. Those terms are part of the agreement signed with Transgrid, which together with AEMO license secures and finalizes the grid connection process.
Australian Energy Market Op erator (AEMO)	AEMO is responsible for operating Australia's largest gas and electricity markets and power systems. AEMO is overlooking all energy producers in NSW and is involved in the process of grid connection approval. AEMO reviews the grid connection terms and GPS studies and issues the license to feed electricity to the grid. AEMO also controls the on-going power generation to make sure that grid stability is maintained.

2.6 Enterprise value & Share price performance

2.6.1 Main market of the Warsaw Stock Exchange

On 30 June 2022 the Company's shares (ISIN NL0010391108) closed at a price of PLN 9.75 (-10.1% MoM), corresponding to a price to book ratio of 2.14. The Company also reports an average monthly trading volume of 319,156 shares in Q2 2022, compared to an average monthly trading volume of 464,926 over the past twelve months.

Chart 2. Total monthly volumes vs. daily closing stock prices

w Warszawie) commenced on 5 January 2021. Prior to that date, data presented in this section have been extracted from the trading activity on NewConnect.

Chart 3. Enterprise value vs. trailing 12 months (TTM) EBITDA Chart 4. Enterprise value / trailing 12 months EBITDA and

Notes:

EV – Enterprise value is calculated as the market capitalisation as of the end of the reporting month, plus net debt, defined as Interest-bearing liabilities minus Liquid assets.

The trailing 12-month EBITDA is the sum of EBITDA reported in the last four quarterly reports including this reporting period, ie. Q3 2021, Q4 2021 Q1 2022 and Q2 2022.

2.6.2 Main market of the Prague Stock Exchange

On 30 June 2022 the share price (ISIN NL0010391108) closed at a level of CZK 51.90 (+14.6% compared to last quarter), corresponding to a price to book ratio of 2.15. The Company reports an average monthly trading volume of 407,699 shares in Q2 2022 compared to an average of 409,101 over the past twelve months.

price to book ratio

Trading of the Company's shares on the regulated market of the Warsaw Stock Exchange (WSE) (Giełda Papierów Wartościowych

Price/book ratio – is calculated by dividing the closing price of the stock as of the end of the reporting period by the book value per share reported in the last quarterly report.

EV/EBITDA ratio – is calculated by dividing the Enterprise Value by the Trailing 12 months (TTM) EBITDA.

Trading of the Company's shares on the regulated market of the Prague Stock Exchange (PSE) (Burza cenných papírů Praha) commenced on 5 January 2021. Prior to that date, data have been extracted from the trading activity on the Free Market of the Prague Stock Exchange.

2.6.3 Quotation Board of the Frankfurt Stock Exchange

On 30 June 2022, the share price (FSX: A1T9KW) closed at a level of EUR 2.06 (+12.3% compared to last quarter), corresponding to a price to book ratio of 2.15.

The Company reports a monthly trading volume of 48,457 shares in Q2 2022 compared to an average of 37,025 over the past twelve months.

The Company's shares have been traded on the Quotation Board of the Frankfurt Stock Exchange since 11 January 2021.

2.7 Bond trading performance

In December 2016 the Company issued a 7-year corporate bond with a 6% annual coupon and monthly payments in the Czech Republic. The corporate bond (ISIN CZ0000000815) with a nominal value of CZK 30,000 has been traded on the Free Market of the Prague Stock Exchange since 12 December 2016.

On 27 October 2017 the Company issued a 5-year corporate EUR bond with a 7.75% annual coupon and quarterly coupon payments in Germany, Austria and Luxemburg. The original target volume of EUR 30 million was successfully increased in two steps with all parameters unchanged, to an outstanding amount of EUR 45.0 million prior to the completion of the exchange offer described below. The corporate bond (ISIN DE000A19MFH4) with a nominal value of EUR 1,000 has been traded on the Open Market of the Frankfurt Stock exchange since 27 October 2017. The bond is also listed on the stock exchanges in Berlin, Hamburg, Hannover, Munich and Stuttgart. The total outstanding bond volume amounts to EUR 22.409 million as of the end of the reporting period respectively EUR 20.956 million as of the reporting date.

On 17 November 2021, The Company successfully placed its 6.50% Green EUR Bond 2021/2027 (ISIN: DE000A3KWKY4) in the amount of EUR 50 million. The bond issuance was met with strong demand from the Company's existing bondholders, who

2.7.1 EUR Bond 2017-22 trading performance

EUR Bond 2017/22 trading performance to date

In the trading period from 25 October 2017 until 30 June 2022, the trading volume amounted to EUR 31.788 million with an opening price of 100.00 and a closing price of 100.00 in Frankfurt. During this period the average daily turnover amounted to EUR 26,825.

Since 28 July 2020, the Company's shares have already been traded on the Free Market (Freiverkehr) of the Munich Stock Exchange.

In addition, the Company's shares have also been traded on the Free Market (Freiverkehr) of the Berlin Stock Exchange since 13 January 2021 and on the Free Market (Freiverkehr) of the Stuttgart Stock Exchange since 14 January 2021.

subscribed to EUR 21.281 million in the exchange that was offered for the existing EUR Bond 2017/2022. The green bond – with an interest rate of 6.50% p.a., paid quarterly – was confirmed by imug | rating with regard to its sustainability in a Second Party Opinion, and can be traded on the Open Market of the Frankfurt Stock Exchange.

On 29 November 2021, the Group successfully increased the bond placement by EUR 5.0 million with all parameters unchanged. The total outstanding bond volume amounts to EUR 55.0 million as of the end of the reporting period.

In May 2022, the Company successfully tapped its 6.50% Green EUR Bond 2021/2027 (ISIN: DE000A3KWKY4) in the amount of EUR 10 million to a total outstanding amount of EUR 65 million.

The Company intends to use the net proceeds of the green bond placement to finance or refinance, in part or in whole, new and/or existing eligible assets, as well as financial instruments that were used to finance such projects or assets, in accordance with the Company's Green Finance Framework, enabling Photon Energy Group to make a significant contribution to an environmentally friendly future.

EUR Bond 2017/22 trading performance in Q2 2022

In Q2 2022, the trading volume in Frankfurt amounted to EUR 220,000 (compared to EUR 784,000 in Q1 2022), with an opening and closing price of 100.00. The average daily turnover in Q1 2022 amounted to EUR 3,492 compared to EUR 12,250 in Q1 2022.

2.7.2 Green EUR Bond 2021/27 trading performance

Green EUR Bond 2021/27 trading performance to date

In the trading period from 17 November 2021 until 30 June 2022, the trading volume amounted to EUR 6.671 million with an opening price of 100.00 and a closing price of 99.00 in Frankfurt. During this period the average daily turnover amounted to EUR 39,241.

Green EUR Bond 2021/27 trading performance in Q2 2022

In Q2 2022, the trading volume in Frankfurt amounted to EUR 456,000 (compared to EUR 1,491,000 in Q1 2022), with an opening price of 99.70 and a closing price of 99.00. The average daily

2.8. Financial statement analysis

Profit and Loss statement

The Group's second quarter results demonstrated exciting progress with consolidated revenues of EUR 23.229 million reported in the second quarter of the year 2022 (+135.7% YOY), and EUR 32.367 million for the first half year (+124.4% YOY). This increase in revenues is primarily connected with higher revenues from the production of electricity generated by our new power plants operating on a merchant basis (1.4 MWp connected to the grid in December 2021 and 14.6 MWp in August 2021), as well as the high electricity prices on the market-linked direct sales component of the "Green Bonus" support scheme, into which the Czech portfolio switched since the beginning of the year. The Company also took important steps to underpin the growth of its business, including the decision to temporarily switch most of the Group's Hungarian IPP portfolio to a merchant model, representing 46.2 MWp out of the Company's 51.8 MWp Hungarian portfolio; starting from April 2022, these power plants were not dependent on any kind of support mechanism. As a result, the Company saw revenues from the sale of electricity generated by the Group's growing portfolio benefit from rising electricity prices globally.

Besides the outstanding revenue from electricity production of EUR 10.963 million (+59.2% YOY), this strong outcome was driven by a remarkable increase in other revenue streams (EUR 12.266 million, +313.2% YOY). The latter was mainly attributable to the great momentum experienced by the Company's component trading business line, which distributes modules, inverters, and now batteries, outshining a relatively more modest growth in O&M and EPC revenues.

turnover in Q2 2022 amounted to EUR 7,238 compared to EUR 14,062 in Q1 2022.

2.7.3 CZK Bond trading performance in Prague

In the trading period from 12 December 2016 until 30 June 2022, the trading volume amounted to CZK 40.500 million with a closing price of 98.00.

This strong business performance led to a consolidated EBITDA improvement by 108.3% to EUR 8.119 million and incurred a record Q2 EBIT of EUR 4.640 million compared to EUR 0.968 million in the same period last year absorbing the booking of a provision for the Hungarian windfall taxes adopted by the Hungarian government retrospectively in June 2022.

Most importantly, the Company turned around a EUR -0.565 million loss before taxation recorded in Q2 2021 to an outstanding EUR 2.619 million in Q2 2022, as well as its net profit with EUR 2.030 million achieved during the reporting period (vs. a EUR -0.869 million net loss in Q2 2021).

Despite a negative Other Comprehensive Income (OCI), affected by a weakening Hungarian Forint (HUF), the Company still reports an increased positive consolidated total comprehensive income for the quarter amounting to EUR 0.546 million, compared to EUR 0.505 million last year for the same period.

Year-to-date, Photon Energy closed a record first half of the year with revenues amounting to EUR 32.367 million, representing a 124.4% increase YOY, raised its EBITDA by 146.2% YOY to EUR 10.143 million. EBIT swung from a loss of EUR -0.507 million to a profit of EUR 5.609 million. Photon Energy recorded a net profit of EUR 0.539 million compared to a EUR -4.037 million loss in the first half of 2021. At the bottom line, TCI amounted to EUR 2.335 million compared to EUR 2.297 million a year ago. The adjusted equity ratio remained at a sound level of 29.3%.

Chart 6. Revenues, EBITDA and EBITDA margin

The data presented above are based on published quarterly reports, with figures adjusted to be consistent with the annual audited figures for 2021 made available after the publication of the 4th quarter.

Balance Sheet

Switching to the balance sheet, Total fixed assets amounted to EUR 140.667 million at the end of Q2 2022, representing a decrease of -1.3% compared to the end of 2021. This development is resulting from a weakening Hungarian Forint (HUF) impacting the EUR value of the Company's Hungarian portfolio, and the ongoing depreciation of our portfolio power plants, partially offset by the addition of the power plant commissioned in Tolna, Hungary and by an increase of our assets in progress in Romania.

Current assets increased by 13.7% compared to the end of 2021 to EUR 61.589 million as of the end of Q2 2022, resulting from an increase in trade and other receivables connected to our business growth, and an increased inventory, partially offset by a decrease in Liquid assets (see below "Cash flow").

Long term liabilities increased by 3.7% compared to the end of 2021 to EUR 115.243 million at the end of Q2 2022, due to the increased placement of our EUR Green bond amounting to EUR

Changes in equity

Equity increased by 4.7% compared to the end of 2021 and amounted to EUR 53.935 million at the end of Q2 2022, reflecting the Total Comprehensive Income for the period. The adjusted equity ratio increased to 29.3% (vs. 28.8% at the end of 2021).

Cash Flow

Despite the increased strong EBITDA of EUR 8.119 million in Q2 2022, the Group posted a negative operating cash flow, which amounted to EUR – 0.194 million, compared to EUR 1.227 million in Q2 2021. This development was mainly driven by an increase in trade receivables from energy generation, as well as the 25% delayed portion of the green bonus payments from OTE, the Czech electricity market operator, payable after the end of the quarter as well as increases in advances paid, in inventories, and increased receivables in line with the strong growing Technology sales.

2.9 Financial forecasts

The Group's updated revenue expectations for the year 2022 amount to EUR 85 million from a previous guidance of up to EUR 65 million set in April 2022, representing a 133.8% (previously 10.0 million, the repayment of loans in accordance with the financing plans of the Company's portfolio of power plants, as well as to early loan repayments related to our Hungarian portfolio.

Current liabilities amounted to EUR 33.076 million at the end of Q2 2022, corresponding to a -2.6% decrease compared to the end of 2021, mainly due to a decrease in trade and other payables, and an early repayment of the Group's EUR 2017/22 bond by EUR 1.310 million to 22.409 million. The EUR 2017/22 bond will be repaid on 27 October 2022 sourced from existing liquid assets and additional long-term financing in line with the Company's financing strategy.

The adjusted equity ratio increased to 29.3%, compared to 28.8% at the end of 2021.

Chart 7. Net current assets Chart 8. Breakdown of liabilities and equity

Investment cash flow equalled to EUR -3.364 million in Q2 2022 compared to EUR -3.614 million in Q2 2021, mainly related to work in progress for our proprietary portfolio in Romania, Poland, Hungary and the Czech Republic.

Financial cash flow amounted to EUR 3.872 million in Q2 2022, compared to EUR 3.861 million in Q2 2021, in line with the EUR 10 million increase of our EUR Green bond placement, an early repayment of our EUR 2017/22 bond for EUR 1.2 million, and scheduled repayments of bank financing and interest expenses and early loan repayments related to our Hungarian portfolio.

Overall, liquid assets increased to EUR 29.510 million at the end of Q2 2022 compared to EUR 29.141 million the end of Q1 2022.

78.8%) increase compared to audited revenues of EUR 36.4 million in 2021. The Group's updated EBITDA target was increased to EUR 24 million from a previous guidance of up to EUR 18 million, representing a +150.4% YOY (previously 87.8%).

3. General information about the Issuer

The table below presents general information about Photon Energy NV, hereinafter referred to as the "PENV", "Issuer", "the Group" and/or the "Company".

Company name:	Photon Energy N.V.
Registered office:	Barbara Strozzilaan 201, 1083 HN, Amsterdam, the Netherlands
Registration:	Dutch Chamber of Commerce (Kamer van Koophandel)
Company number:	51447126
Tax-ID:	NL850020827B01
Ticker:	PEN
Web:	www.photonenergy.com

4. Share capital of the Issuer

The Company's share capital is EUR 600,000 divided into 60,000,000 shares with a nominal value of EUR 0.01 each. The share capital is fully paid-up.

Share capital as of 30 June 2022

Series / issue	Type of shares	Type of pref erence	Limitation of right to shares	Number of shares	Nominal value of se ries/issue (EUR)	Capital covered with
A	bearer	-	-	60,000,000	600,000	cash
Total number of shares				60,000,000
Total share capital					600,000
Nominal value per share = EUR 0.01

In the reporting period there were no changes to the share capital.

5. Shareholder structure

As of the reporting date to the knowledge of the Board of Directors of Photon Energy N.V., the shareholder structure was as follows:

Shareholdership as of 30.06.2022	No. of shares	% of capital	No. of votes at the Share holders Meeting	% of votes at the Share holders Meeting
Solar Future Cooperatief U.A.	21,775,075	36.29%	21,775,075	38.68%
Solar Power to the People Cooperatief U.A.	20,843,375	34.74%	20,843,375	37.03%
Photon Energy N.V.	3,708,258	6.18%	0	0.00%
Free float	13,673,292	22.79%	13,673,292	24.29%
Total	60,000,000	100.00%	56,291,742	100.00%

The free float includes shares allocated to the employee incentive programme. The disposition rights to these shares are limited and employees can dispose of these shares only under specific conditions.

6. Statutory bodies of the Issuer

Board of directors as of 30 June 2022

The Board of Directors is responsible for the day-to-day operations of the Company. The Issuer's Board of Directors has the following members:

Name	Position	Date of birth	Start of function
Georg Hotar	Director (Bestuurder)	21. 04. 1975	4 December 2020*
Michael Gartner	Director (Bestuurder)	29. 06. 1968	4 December 2020*

Mr Hotar and Mr Gartner have been the Company's managing directors since 9 December 2010, however, new term of their office (previously unlimited and currently term of four years) has started on 4 December 2020, due to the changes in the Company's corporate structure.

Supervisory board

On 4 December 2020, the shareholders of Photon Energy established in an extraordinary general meeting a two-tier board structure comprised of the existing management board and a new supervisory board.

The supervisory board provides guidance and oversight to the management board on the general affairs of the company. They also serve as audit committee.

7. Description of the Issuer's business

Photon Energy NV is the holding company of the Photon Energy Group and was incorporated under the laws of the Netherlands on 9 December 2010. The Photon Energy Group ("Group") offers comprehensive solutions and maintenance services for photovoltaic systems that cover their entire lifecycle globally.

The Group is vertically integrated in the downstream segment of the photovoltaic industry. The company focuses on life-cycle services and delivers:

• ► Projects: Project development for rooftop and green-field installations from 300 kW to 300 MW.
• ► Solutions (Engineering): Design and construction of ongrid and off-grid installations, including battery storage solutions,

On 31 May 2022, the Supervisory Board of the Company was extended from two to three members, Mrs. Boguslawa Skowronski, Mr. Marek Skreta, and Mr. Ariel Sergio Davidoff

As of today, the provisions in Dutch law, which are commonly referred to as the "large company regime" (structuurregime), do not apply to the Company. The Company does not intend to voluntarily apply to the "large company regime.

• ► Technology: Trading of PV-components (modules, inverters and batteries).
• ► Investments (Electricity Generation): Investments in PV power plants and sustainable production and sale of electricity.
• ► Operations: Operations and maintenance of PV power plants, including a proprietary control room and monitoring platform.

In addition, the company launched a new service line Water which offers comprehensive services in the fields of contaminated land and ground water remediation and water purification.

Country-specific references

Currently Photon Energy is active with 176 professionals in nine countries across three continents (headquartered in Amsterdam), with a track record of building more than 110 MWp of grid-connected PV plants across five countries, a proprietary portfolio of 91.9 MWp of PV plants and around 327 MWp of PV power plants under O&M management across two continents.

8. Implementation of innovative activities in the Company

None during the reporting period.

9. Employees

As of the end of Q2 2022, Photon Energy had 176 employees (compared to 145 employees at the end of Q2 2021) translating into 171.5 FTE (compared to 142.3 FTE as of the end of Q2 2021).

Chart 11. Total number of employees and full-time equivalent employees per quarter

Full-time equivalent (FTE) is a unit that indicates the workload of a person in a way that makes workloads comparable across various contexts. An FTE of 1.0 means that the person is equivalent to a full-time employee, while an FTE of 0.5 signals that the employee is only half-time.

Employee Share Purchase Programme

The management of the Company recognises the significant contribution of the team members to the future development of the Group. Therefore, it operates an Employee Share Purchase Programme as a part of its motivation system. Under the terms of the programme, the Group periodically purchases shares for participating employees equal to 10% of their gross compensation.

The disposition rights to these shares are limited and employees 142,3 138,3 141,3 can dispose of these shares only under specific conditions.

10. Group structure

The following table presents the Group's structure (subsidiaries and joint ventures) and the holding company's stake in the entities comprising the Group as of the reporting date.

Name	% of share capital held by the holding company	Country of registration	Consolid. method	Legal Owner
1 Photon Energy N.V. (PENV)	Holding	NL	Full Cons.	-
2 Photon Energy Operations NL B.V. (PEONL, former Photon Directors B.V.)	100%	NL	Full Cons.	PEONV
3 Photon Energy Engineering B.V. (PEEBV)	100%	NL	Full Cons.	PENV
4 Photon Energy Operations N.V. (PEONV)	100%	NL	Full Cons.	PENV
5 Photon Remediation Technology N.V. (PRTNV)	100%	NL	Full Cons.	PENV
6 Photon Energy Australia Pty Ltd.	100%	AU	Full Cons.	PENV
7 Photon Energy AUS SPV 1 Pty. Ltd.	100%	AU	Full Cons.	PENV
8 Leeton Solar Farm Pty Ltd (former Photon Energy AUS SPV 2 Pty. Ltd.)	100%	AU	Full Cons.	PENV
9 Fivebough Solar Farm Pty Ltd. (former Photon Energy AUS SPV 3 Pty. Ltd.)	100%	AU	Full Cons.	PENV
10 Photon Energy AUS SPV 4 Pty. Ltd.	100%	AU	Full Cons.	PENV
11 Photon Energy AUS SPV 6 Pty. Ltd.	51%	AU	Equity	PENV
12 Photon Energy Operations Australia Pty.Ltd.	100%	AU	Full Cons.	PEONV
13 Photon Energy Engineering Australia Pty Ltd	100%	AU	Full Cons.	PEEBV
14 Photon Remediation Technology Australia Pty Ltd.	100%	AU	Full Cons.	PRTNV
15 Photon Energy SGA Pty. Ltd.	100%	AU	Full Cons.	PENV
16 Photon Water Australia Pty. Ltd.	100%	AU	Full Cons.	PENV
17 Raygen Resources Pty. Ltd.	7.85%	AU	Equity	PENV
18 Photon Energy AUS SPV 12 Pty. Ltd.	100%	AU	Full Cons.	PENV
19 Global Investment Protection AG (GIP)	100%	CH	Full Cons.	PENV
20 ALFEMO AG (ALAG)	100%	CH	Full Cons.	PENV
21 KORADOL AG (KOAG)	100%	CH	Full Cons.	PENV
22 Photon Energy Solutions A.G.	100%	CH	Full Cons.	PENV
23 Photon Property AG,	100%	CH	Full Cons.	PENV
24 Photon Energy Corporate Services CZ s.r.o.	100%	CZ	Full Cons.	PENV
25 Photon Energy Solutions CZ a.s.(former Photon Energy Solutions CZ s.r.o.)	100%	CZ	Full Cons.	KOAG
26 Photon SPV 11 s.r.o.	100%	CZ	Full Cons.	KOAG
27 Photon Energy Operations CZ s.r.o. (PEOCZ)1	100%	CZ	Full Cons.	PEONV
28 Photon Energy Control s.r.o.	100%	CZ	Full Cons.	PEOCZ
29 Photon Energy Technology CEE s.r.o.	100%	CZ	Full Cons.	PEEBV
30 Photon Water Technology s.r.o.	65%	CZ	Full Cons.	PENV
31 Photon Remediation Technology Europe s.r.o. (former Charles Bridge s.r.o.)	100%	CZ	Full Cons.	PENV
32 Photon Energy Engineering s.r.o. (former Photon Energy Solutions s.r.o. ) (PEECZ)	100%	CZ	Full Cons.	PENV
33 Photon Energy Projects s.r.o. (PEP)	100%	CZ	Full Cons.	PENV
34 Photon Energy Cardio s.r.o.	100%	CZ	Full Cons.	PEOCZ
35 Photon Maintenance s.r.o. (former The Special One s.r.o.)	100%	CZ	Full Cons.	PENV
36 Exit 90 SPV s.r.o.	100%	CZ	Full Cons.	KOAG
37 Onyx Energy s. r. o.	100%	CZ	Full Cons.	KOAG
38 Onyx Energy projekt II s.r.o.	100%	CZ	Full Cons.	KOAG
39 Photon SPV 3 s.r.o.	100%	CZ	Full Cons.	KOAG
40 Photon SPV 4 s.r.o.	100%	CZ	Full Cons.	KOAG
41 Photon SPV 6 s.r.o.	100%	CZ	Full Cons.	KOAG
42 Photon SPV 8 s.r.o.	100%	CZ	Full Cons.	KOAG
43 Photon SPV 10 s.r.o.	100%	CZ	Full Cons.	KOAG
44 Kaliopé Property, s.r.o.	100%	CZ	Full Cons.	KOAG
45 Photon Energy Technology EU GmbH	100%	DE	Full Cons.	PENV
46 Photon Energy Corporate Services DE GmbH	100%	DE	Full Cons.	PENV
47 EcoPlan 2 s.r.o.	100%	SK	Full Cons.	PENV
48 EcoPlan 3 s.r.o.	100%	SK	Full Cons.	PENV
49 Fotonika s.r.o.	100%	SK	Full Cons.	PENV
50 Photon SK SPV 1 s.r.o.	50%	SK	Equity	PENV
51 Photon SK SPV 2 s.r.o.	100%	SK	Full Cons.	PENV
52 Photon SK SPV 3 s.r.o.	100%	SK	Full Cons.	PENV
53 Solarpark Myjava s.r.o.	50%	SK	Equity	PENV
54 Solarpark Polianka s.r.o.	50%	SK	Equity	PENV
55 SUN4ENERGY ZVB s.r.o.	100%	SK	Full Cons.	PENV
56 SUN4ENERGY ZVC s.r.o.	100%	SK	Full Cons.	PENV
57 ATS Energy, s.r.o. 58 Photon Energy Operations SK s.r.o.	100% 100%	SK SK	Full Cons. Full Cons.	PENV PEONV

Name	% of share capital held by the holding company	Country of registration	Consolid. method	Legal Owner
59 Photon Energy HU SPV 1 Kft. b.a	100%	HU	Full Cons.	ALAG
60 Fertod Napenergia-Termelo Kft.	100%	HU	Full Cons.	ALAG
61 Photon Energy Operations HU Kft.	100%	HU	Full Cons.	PEONV
62 Photon Energy Solutions HU Kft.	100%	HU	Full Cons.	PENV
63 Future Solar Energy Kft	100%	HU	Full Cons.	ALAG
64 Montagem Befektetési Kft.	100%	HU	Full Cons.	ALAG
65 Solarkit Befektetesi Kft.	100%	HU	Full Cons.	ALAG
66 Energy499 Invest Kft.	100%	HU	Full Cons.	ALAG
67 SunCollector Kft.	100%	HU	Full Cons.	ALAG
68 Green-symbol Invest Kft.	100%	HU	Full Cons.	ALAG
69 Ekopanel Befektetési és Szolgaltató Kft. 70 Onyx-sun Kft.	100% 100%	HU HU	Full Cons. Full Cons.	ALAG ALAG
71 Tataimmo Kft	100%	HU	Full Cons.	ALAG
72 Öreghal Kft.	100%	HU	Full Cons.	ALAG
73 European Sport Contact Kft.	100%	HU	Full Cons.	ALAG
74 ALFEMO Alpha Kft.	100%	HU	Full Cons.	ALAG
75 ALFEMO Beta Kft.	100%	HU	Full Cons.	ALAG
76 ALFEMO Gamma Kft.	100%	HU	Full Cons.	ALAG
77 Archway Solar Kft.	100%	HU	Full Cons.	PENV
78 Barbican Solar Kft.	100%	HU	Full Cons.	ALAG
79 Belsize Solar Kft.	100%	HU	Full Cons.	ALAG
80 Blackhorse Solar Kft.	100%	HU	Full Cons.	ALAG
81 Caledonian Solar Kft	100%	HU	Full Cons.	ALAG
82 Camden Solar Kft	100%	HU	Full Cons.	ALAG
83 Hampstead Solar Kft.	100%	HU	Full Cons.	ALAG
84 Ráció Master Oktatási	100%	HU	Full Cons.	ALAG
85 Aligoté Kereskedelmi és Szolgáltató Kft.	100%	HU	Full Cons.	ALAG
86 MEDIÁTOR PV Plant Kft. (former MEDIÁTOR Ingatlanközvetítő és Hirdető Kft.)	100%	HU	Full Cons.	ALAG
87 PROMA Mátra PV Plant Kft. (former PROMA Mátra Ingatlanfejlesztési Kft.)	100%	HU	Full Cons.	ALAG
88 Optisolar Kft.	100%	HU	Full Cons.	ALAG
89 Ladány Solar Alpha Kft.	100%	HU	Full Cons.	ALAG
90 Ladány Solar Beta Kft.	100%	HU	Full Cons.	ALAG
91 Ladány Solar Gamma Kft.	100%	HU	Full Cons.	ALAG
92 Ladány Solar Delta Kft.	100%	HU	Full Cons.	ALAG
93 ÉGÉSPART Energiatermelő és Szolgáltató Kft	100%	HU	Full Cons.	ALAG
94 ZEMPLÉNIMPEX Kereskedelmi és Szolgáltató Kf	100%	HU	Full Cons.	ALAG
95 ZUGGÓ-DŰLŐ Energiatermelő és Szolgáltató Kft	100%	HU	Full Cons.	ALAG
96 Ventiterra Környezetgazdálkodási és Szolgáltató Kft.	100%	HU	Full Cons.	ALAG
97 VENTITERRA ALFA Kft.	100%	HU	Full Cons.	ALAG
98 VENTITERRA BETA Kft.	100%	HU	Full Cons.	ALAG
99 Hendon Solar Kft.	100%	HU	Full Cons.	ALAG
100 Mayfair Solar Kft.	100%	HU	Full Cons.	ALAG
101 Holborn Solar Kft.	100%	HU	Full Cons.	ALAG
102 Photon Energy Project Development XXK (PEPD)	99%	MN	Full Cons.	PEP
103 PEPD Solar XXK.	100%	MN	Full Cons.	PEPD
104 Photon Energy Solutions PL S.A.(former Solar Age Polska S.A.)	100%	PL	Full Cons.	PENV
105 Photon Energy Polska Sp. Z o.o.	100%	PL	Full cons.	PENV
106 Photon Energy Operations PL Sp. z o.o.	100%	PL	Full cons.	PEONV
107 Alperton Solar Sp. z o.o.	100%	PL	Full cons.	PENV
108 Beckton Solar Sp. z o.o.	100%	PL	Full cons.	PENV
109 Debden Solar Sp. z o.o.	100%	PL	Full cons.	PENV
110 Chigwell Solar Sp. z o.o.	100%	PL	Full cons.	PENV
111 Ealing Solar Sp. z o.o.	100%	PL	Full cons.	PENV
112 Lerta S.A.	23.98%	PL	Equity	PENV
113 Stanford Solar Srl.	100%	RO	Full cons.	PEP & PEECZ
114 Halton Solar Srl.	100%	RO	Full cons.	PEP & PEECZ
115 Aldgate Solar Srl	100%	RO	Full cons.	PEP & PEECZ
116 Holloway Solar Srl.	100%	RO	Full cons.	PEP & PEECZ
117 Moorgate Solar Srl.	100%	RO	Full cons.	PEP & PEECZ
118 Redbridge Solar Srl.	100%	RO	Full cons.	PEP & PEECZ
119 Watford Solar Srl	100%	RO	Full cons.	PEP & PEECZ
120 Photon Energy Operations Romania Srl. (former Becontree Solar Srl.)	100%	RO	Full cons.	PEONV &
121 Greenford Solar Srl.	100%	RO	Full cons.	PEOCZ PEP & PEECZ
122 Chesham Solar Srl.	100%	RO	Full cons.	PEP & PEECZ
123 Photon Energy Romania Srl.	100%	RO	Full cons.	PENV & PEP

Name	% of share capital held by the holding company	Country of registration	Consolid. method	Legal Owner
124 Siria Solar SRL	100%	RO	Full Cons.	ALAG&KOAG
125 Brentford Solar SRL	100%	RO	Full cons.	PEP & PEECZ
126 Camberwell Solar SRL	100%	RO	Full cons.	PEP & PEECZ
127 Deptford Solar SRL	100%	RO	Full cons.	PEP & PEECZ
128 Harlow Solar SRL	100%	RO	Full cons.	PEP & PEECZ
129 Kenton Solar SRL	100%	RO	Full cons.	PEP & PEECZ
130 Lancaster Solar SRL	100%	RO	Full cons.	PEP & PEECZ
131 Perivale Solar SRL	100%	RO	Full cons.	PEP & PEECZ
132 Romford Solar SRL	100%	RO	Full cons.	PEP & PEECZ
133 Stratford Solar SRL	100%	RO	Full cons.	PEP & PEECZ
134 Weston Solar SRL	100%	RO	Full cons.	PEP & PEECZ
135 Photon Energy Engineering Romania SRL	100%	RO	Full cons.	PENV & PEP
136 Photon Renewable Energy Pty. Ltd.	100%	SA	Full Cons.	PENV
137 Solar Age SPV 1 Pty. Ltd.	100%	SA	Full Cons.	PENV

Notes:

Country of registration:

AU – Australia CH – Switzerland CZ –Czech Republic DE – Germany HU – Hungary NL – Netherlands MN – Mongolia PL – Poland PE – Peru RO – Romania SK – Slovakia SA – South Africa

Consolidation method:

Full Cons. – Full Consolidation Not Cons. – Not Consolidated Equity – Equity Method

Photon Energy Operations CZ s.r.o. established a branch office in Romania.

PEP & PESCZ – Photon Energy Projects s.r.o. owns 95% and Photon Energy Solution s.r.o. owns 5%

In the reporting period, the following changes to the Group structure took place:

• ► On 6 April 2022, Photon Energy Solutions s.r.o. was renamed to Photon Energy Engineering s.r.o..
• ► On 27 April 2022, Photon SPV 1 s.r.o. was renamed to Photon Energy Solutions CZ s.r.o.
• ► On 24 May 2022, Solar Age Polska S.A. was renamed to Photon Energy Solutions PL S.A..
• ► On 10 June 2022, Photon Energy N.V. became 100% shareholder of Photon Energy Solutions AG.
• ► On 10 June 2022, Photon Energy N.V. became 100% shareholder of Photon Property AG.

After the reporting period, the following events occurred from the beginning of July 2022

► On 1 July 2022, Photon Energy Solutions CZ s.r.o. successfully changed it's name (and legal form) to Photon Energy Solutions CZ a.s..

11. Report on the key events material for the Group's operations

11.1 Summary of the key events from 1 April until 30 June 2022

In the period covered by this report the following current reports were published in the EBI (Electronic Database Information) system of Warsaw Stock Exchange:

► EBI report 1 - 11.04.2022 - Report on the scope of compliance with the WSE Best Practice

In the period covered by this report the following current reports were published in the ESPI (Electronic Information Transmission System) system of Warsaw Stock Exchange:

• ► ESPI report 9 11.04.2022 Photon Energy Group publishes 2021 Annual report and Sustainability report.
• ► ESPI report 10 13.04.2022 Monthly report for March 2022.
• ► ESPI report 11 19.04.2022 Photon Energy Group provides full year 2022 guidance.
• ► ESPI report 12 20.04.2022 Convocation of the Annual General Meeting of shareholders on 31 May 2022
• ► ESPI report 13 05.05.2022 Change in substantial blocks of Shares.
• ► ESPI report 14 05.05.2022 Photon Energy Group expands its IPP portfolio to 92 MWp.
• ► ESPI report 15 10.05.2022 Photon Energy Group considers tapping its outstanding 6.50% Green EUR Bond 2021/2027.
• ► ESPI report 16 11.05.2022 Quarterly report for Q1 2022
• ► ESPI report 17 13.05.2022 Monthly report for April 2022
• ► ESPI report 18 25.05.2022 Photon Energy N.V. authorized tap of 2021/2027 bonds (DE000A3KWKY4)

11.2 Summary of the key events after 30 June 2022

After the period covered by this report, the following current reports were published in the EBI (Electronic Database Information) system of Warsaw Stock Exchange:

► None.

After the period covered by this report the following current reports were published in the ESPI (Electronic Information Transmission System) system of Warsaw Stock Exchange:

• ► ESPI report 29 04.07.2022 Photon Energy Group reconfirms 2022 financial guidance after record June revenues
• ► ESPI report 30 13.07.2022 Photon Energy breaks ground on second of total 32 MWp solar projects to be built in Romania this year
• ► ESPI report 31 14.07.2022 Monthly report for June 2022
• ► ESPI report 32 28.07.2022 Photon Energy breaks ground on another three solar projects in Romania.

These reports have also been provided to the Prague stock exchange.

• ► ESPI report 19 27.05.2022 Photon Energy N.V. successfully taps its 6.50% green bond to EUR 65 million.
• ► ESPI report 20 30.05.2022 Non-public report List of all shareholders entitled to vote at the Annual General Meeting to be held on 31 May 2022.
• ► ESPI report 21 01.06.2022 List of shareholders holding at least 5% of votes at the Annual General Meeting of shareholders held on 31 May 2022.
• ► ESPI report 22 01.06.2022 The minutes of the AGM of shareholders held on 31 May 2022.
• ► ESPI report 23 03.06.2022 Change in Substantial Blocks of Shares.
• ► ESPI report 24 14.06.2022 Monthly report for May 2022.
• ► ESPI report 25 14.06.2022 Photon Energy achieves record energy generation volume and revenues in May.
• ► ESPI report 26 20.06.2022 Photon Energy breaks ground on first of 32 MWp solar projects in Romania to be built this year.
• ► ESPI report 27 23.06.2022 Photon Energy signs 48 MWp O&M service agreement and obtains ISO certification.
• ► ESPI report 28 28.06.2022 Change in substantial blocks of shares

.

12. Detailed consolidated financial results for Q2 2022

The tables below present the consolidated and unaudited financial statements of Photon Energy N.V. for the period starting on 1 April 2022 and ending on 30 June 2022 and the corresponding period of the previous year. The reported data is presented in accordance with International Financial and Reporting Standards (IFRS).

Statement of Comprehensive Income

in Thousands		EUR		PLN		CZK
		Q2 2022	Q2 2021	Q2 2022	Q2 2021	Q2 2022
Total revenues	9,855	23,229	44,632	107,963	252,650	572,457
Out of that: Revenues from electricity generation	6,886	10,963	31,186	50,953	176,537	270,167
Out of that: Other revenues	2,969	12,266	13,446	57,011	76,113	302,290
Other income	-15	56	-67	258	-380	1,368
Raw materials and consumables used	-2,718	-8,966	-12,310	-41,671	-69,687	-220,956
Solar levy	-324	-710	-1,466	-3,301	-8,298	-17,501
Personnel expenses	-1,708	-2,089	-7,734	-9,711	-43,782	-51,490
Other expenses	-1,192	-3,400	-5,399	-15,803	-30,562	-83,793
Earnings before interest, taxes, depreciation & amortisation (EBITDA)	3,898	8,119	17,655	37,735	99,941	200,085
Depreciation	-3,020	-2,854	-13,678	-13,267	-77,426	-70,345
Impairment charges	0	-662	-1	-3,077	-8	-16,316
Gain (loss) on disposal of investments	0	0	0	0	0	0
Share of profit equity accounted investments (net of tax)	90	38	409	176	2,313	935
Result from operating activities (EBIT)	968	4,640	4,384	21,568	24,819	114,359
Financial income	13	-217	60	-1,007	342	-5,338
Financial expenses	-1,665	-2,174	-7,541	-10,103	-42,687	-53,571
Revaluation of derivatives	118	369	536	1,715	3,035	9,096
Profit/loss before taxations (EBT)	-565	2,619	-2,560	12,173	-14,491	64,545
Income tax due/deferred	-303	-589	-1,374	-2,740	-7,777	-14,527
Profit/loss from continuing operations	-869	2,030	-3,934	9,433	-22,267	50,019
Profit/loss	-869	2,030	-3,934	9,433	-22,267	50,019
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Revaluation of property, plant and equipment	0	433	0	2,011	0	10,661
Revaluation of other investments	-96	0	-435	0	-2,463	0
Items that will be reclassified subsequently to profit or loss
Foreign currency translation diff. - foreign operations	1,169	-2,340	5,294	-10,877	29,970	-57,672
Derivatives (hedging)	294	424	1,331	1,970	7,536	10,447
Items that will be reclassified subsequently to profit or loss - related to JV
Derivatives (hedging)	7	0	32	-1	181	-4
Other comprehensive income for the period	1,374	-1,484	6,222	-6,896	35,224	-36,567
Total comprehensive income for the period	505	546	2,289	2,537	12,957	13,451
Profit attributable to:
Attributable to the equity holders	-834	2,038	-3,776	9,472	-21,374	50,222
Attributable to non-controlling interest	-35	-8	-158	-38	-893	-203
Profit for the period	-869	2,030	-3,933	9,433	-22,266	50,019
Total comprehensive income attributable to:
Attributable to the equity holders	540	554	2,447	2,576	13,850	13,660
Attributable to non-controlling interest	-35	-8	-158	-38	-893	-203
Total comprehensive income for the period	505	546	2,289	2,538	12,958	13,457
Average no. of shares outstanding (in thousand)	53,734	56,287	53,734	56,287	53,734	56,287
Earnings per share outstanding	-0.016	0.036	-0.070	0.168	-0.398	0.892
Comprehensive income per share outstanding	0.010	0.010	0.046	0.046	0.258	0.243
EUR exchange rate – low			4.451	4.569	25.335	24.320
EUR exchange rate – average			4.529	4.648	25.638	24.644
EUR exchange rate – high			4.609	4.713	26.085	25.365

Statement of Financial Position

	EUR		PLN		CZK
in Thousands	31.12.2021	30.06.2022	31.12.2021	30.06.2022	31.12.2021	30.06.2022
Intangible assets	844	656	3,815	3,077	21,515	16,236
Property, plant and equipment	127,492	125,104	576,087	586,631	3,249,129	3,095,063
PPE – Lands	5,169	5,223	23,357	24,492	131,731	129,218
PPE – Photovoltaic power plants	118,265	113,945	534,395	534,305	3,013,990	2,818,993
PPE – Equipment	1,006	956	4,546	4,482	25,637	23,650
PPE – Assets in progress	3,052	4,980	13,789	23,351	77,771	123,202
Right of use - leased asset	2,139	2,404	9,664	11,275	54,507	59,485
L-T advances for PPE	98	163	442	764	2,496	4,030
Investments in equity-accounted investees	1,626	4,850	7,346	22,745	41,432	120,001
Other receivables - non current	529	523	2,390	2,454	13,481	12,946
Other non-current financial assets	9,736	6,966	43,993	32,666	248,119	172,345
Non-current assets	142,463	140,667	643,737	659,611	3,630,679	3,480,106
Inventories	2,197	4,394	9,929	20,606	56,000	108,718
Contract asset	1,131	978	5,108	4,588	28,811	24,205
Trade receivables	3,756	10,203	16,974	47,845	95,731	252,428
Other receivables	5,327	13,837	24,072	64,885	135,766	342,335
Loans to related parties	1,811	2,299	8,182	10,780	46,149	56,877
Current income tax receivables	303	0	1,369	0	7,723	0
Prepaid expenses	268	366	1,209	1,716	6,819	9,053
Liquid assets	39,362	29,510	177,863	138,379	1,003,149	730,087
Cash and cash equivalents	32,506	20,499	146,881	96,124	828,411	507,152
Liquid assets with restriction on disposition	3,629	5,256	16,400	24,646	92,496	130,030
Precious metals	3,227	3,755	14,582	17,609	82,243	92,904
Assets held for sale	0	0	0	0	0	0
Current assets	54,155	61,589	244,707	288,799	1,380,148	1,523,703
Total assets	196,618	202,255	888,440	948,405	5,010,802	5,003,784
Share capital	600	600	2,711	2,813	15,291	14,844
Share premium	31,443	31,526	142,080	147,829	801,331	779,944
Reserves	44,312	44,676	200,228	209,494	1,129,284	1,105,290
Legal reserve	13	13	60	63	340	330
Retained earnings	-24,680	-22,674	-111,521	-106,323	-628,978	-560,960
Other capital funds	38	38	172	178	968	940
Treasury shares held	-38	-58	-172	-272	-968	-1,435
Equity attributable to owners of the Company	51,688	54,121	233,558	253,782	1,317,268	1,338,953
Non-controlling interests	-150	-186	-678	-872	-3,825	-4,601
Total equity	51,538	53,935	232,880	252,910	1,313,444	1,334,352
Loans and borrowings	41,106	34,988	185,744	164,063	1,047,594	865,594
Issued bonds	57,223	67,204	258,570	315,130	1,458,332	1,662,626
Lease liability	1,676	1,960	7,575	9,189	42,724	48,482
Other non-current liabilities	373	290	1,687	1,359	9,513	7,173
Provisions	545	548	2,464	2,569	13,896	13,556
Deferred tax liabilities	10,197	10,253	46,078	48,080	259,882	253,671
Non-current liabilities	111,122	115,243	502,117	540,391	2,831,941	2,851,101
Loans and borrowings	4,354	4,769	19,674	22,361	110,962	117,978
Issued bonds	24,107	23,026	108,929	107,972	614,359	569,660
Trade payables	2,275	1,128	10,280	5,288	57,982	27,902
Other payables	2,201	1,721	9,947	8,071	56,099	42,582
Contract liabilities	423	907	1,913	4,252	10,788	22,431
Lease liability	597	580	2,696	2,719	15,204	14,345
Current tax liabilities	0	946	0	4,435	0	23,400
Current liabilities	33,957	33,076	153,439	155,098	865,394	818,299
Total Liabilities	145,079	148,319	655,556	695,489	3,697,335	3,669,400
TOTAL Equity & Liabilities	196,618	202,255	888,440	948,403	5,010,804	5,003,777
No. of shares outstanding in thousand	56,252	56,292	56,252	56,292	56,252	56,292
Book value per share outstanding	0.916	0.958	4.140	4.493	23.349	23.704

Cash Flow Statement

in Thousands Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Cash flows from operating activities Profit/Loss for the year before tax -565 2,619 -2,560 12,173 -14,490 64,545 Adjustments for: Depreciation 3,020 2,854 13,678 13,267 77,426 70,345 Impairment charges 0 662 0 3,077 0 16,316 Other changes in fixed assets 0 0 0 0 0 0 Share of profit of equity-accounted investments -90 -38 -409 -176 -2,313 -935 Profit/Loss on sale of property, plant and equipment 0 0 0 0 0 0 Other non-cash items -237 2,120 -1,073 9,853 -6,076 52,245 Gain on disposal of financial investments 0 0 0 0 0 0 Net finance costs 1,533 2,021 6,944 9,395 39,309 49,813 Changes in: Trade and other receivables -2,499 -8,307 -11,318 -38,608 -64,066 -204,711 Gross amount due from customers for contract work 197 394 890 1,833 5,039 9,719 Precious metals 0 0 0 0 0 0 Prepaid expenses 173 -58 783 -267 4,430 -1,418 Inventories 97 -1,933 438 -8,985 2,479 -47,639 Trade and other payables -615 371 -2,786 1,724 -15,773 9,140 Income tax paid (advances) 253 -901 1,145 -4,188 6,484 -22,205 Net cash from operating activities 1,266 -194 5,732 -902 32,449 -4,783 Cash flows from investing activities Acquisition of property, plant and equipment -1,011 -3,054 -4,579 -14,194 -25,920 -75,262 Acquisition of subsidiaries, associates, joint ventures 0 -5 0 -23 0 -123 Acquisition of precious metals -1,594 -277 -7,218 -1,287 -40,860 -6,826 Acquisition of other non-current financial investments -1,010 -28 -4,573 -128 -25,886 -679 Proceeds from sale of investments 0 0 0 0 0 0 Proceeds from sale of property, plant and equipment 0 0 0 0 0 0 Interests received 0 0 0 0 0 0 Net cash from investing activities -3,614 -3,364 -16,370 -15,633 -92,666 -82,891 Cash flows from financing activities Proceeds from issuance of ordinary shares/Repurchase of treasury shares 7,652 -48 34,656 -225 196,178 -1,192 Change of consolidation method (acquisition of JV) 0 0 0 0 0 0 Proceeds from borrowings 0 0 0 0 0 0 Transfer to/from restricted cash account -229 277 -1,036 1,288 -5,866 6,831 Repayment of borrowings -2,546 -2,830 -11,531 -13,153 -65,273 -69,742 Repayment of principal element of lease liability -127 -168 -577 -781 -3,268 -4,140 Proceeds from issuing bonds 748 10,000 3,390 46,477 19,188 246,439 Payment of placement fees 0 -108 0 -501 0 -2,655 Repayment of long term liabilities/bonds 0 -1,210 0 -5,624 0 -29,819 Interest payments -1,637 -2,041 -7,416 -9,485 -41,981 -50,294 Net cash from financing activities 3,861 3,872 17,485 17,997 98,979 95,428 Net decrease/increase in cash and cash equivalents 1,512 315 6,847 1,462 38,761 7,754 Cash and cash equivalents at the beginning of the period 14,563 20,184 65,953 93,812 373,347 497,425 Cash and cash equivalents at the end of the period 16,074 20,499 72,800 95,275 412,108 505,178 EUR exchange rate – low 4.451 4.569 25.335 24.320	EUR		PLN	CZK
EUR exchange rate – average 4.529 4.648 25.638 24.644
EUR exchange rate – high 4.609 4.713 26.085 25.365

13. Detailed entity financial results for Q2 2022

The tables below present the unaudited entity financial statements of Photon Energy N.V. for the three-month period starting on 1 April 2022 and ending on 30 June 2022 and the corresponding period of the previous year. The reported data is presented in accordance with Dutch Accounting Standards.

Income Statement

in Thousands (except EPS)		EUR		PLN		CZK
		Q2 2022	Q2 2021	Q2 2022	Q2 2021	Q2 2022
Net turnover	889	1,158	4,028	5,380	22,804	28,526
Other operating income	0	0	0	0	0	0
Total operating income	889	1,158	4,028	5,380	22,804	28,526
Costs of raw materials and consumables	0	0	0	0	0	0
Wages and salaries	-20	-3	-91	-16	-512	-83
Amortisation of intangible fixed assets and depreciation of tangible fixed assets	0	0	0	0	0	0
Impairment of current assets	0	0	0	0	0	0
Other operating expenses	-886	-1,152	-4,014	-5,352	-22,724	-28,380
Total operating expenses	-906	-1,155	-4,105	-5,368	-23,236	-28,462
Other interest income and similar income	421	-5	1,905	-23	10,784	-124
Changes in value of fixed asset investments	0	0	0	0	0	0
Interest expense and similar expenses	-1,358	-1,741	-6,151	-8,091	-34,822	-42,900
Results before tax	-954	-1,743	-4,323	-8,102	-24,470	-42,959
Taxes	0	0	0	0	-2	0
Share in profit/loss of participations	0	0	0	0	0	0
Net result after tax	-955	-1,743	-4,323	-8,102	-24,472	-42,959

Balance Sheet

	EUR			PLN		CZK
in Thousands	31.12.2021	30.06.2022	31.12.2021	30.06.2022	31.12.2021	30.06.2022
A. Fixed assets	65,725	66,284	296,984	310,815	1,674,991	1,639,858
I. Intangible fixed assets	36	28	161	132	907	699
3. Concessions, licences and intellectual property	36	28	161	132	907	699
II. Tangible fixed assets	0	0	0	0	0	0
III. Financial fixed assets	65,689	66,255	296,823	310,682	1,674,084	1,639,160
1. Interests in group companies	30,882	34,964	139,544	163,950	787,028	864,999
2. Accounts receivable from group companies	25,060	24,326	113,237	114,068	638,654	601,822
5. Other investments	9,747	6,966	44,043	32,665	248,402	172,339
B. Current assets	101,883	108,955	460,371	510,909	2,596,493	2,695,557
I. Inventories	0	0	0	0	0	0
II. Accounts receivable	81,281	103,859	367,279	487,013	2,071,455	2,569,479
1. Trade debtors	7,953	7,680	35,935	36,015	202,673	190,015
2. From group companies	70,165	89,176	317,049	418,160	1,788,155	2,206,213
4. Other accounts receivable	3,158	6,991	14,270	32,782	80,482	172,960
6. Prepayments and accrued income	4	12	17	55	94	291
IV. Cash at banks and in hand	20,602	5,096	93,092	23,896	525,038	126,077
Assets	167,608	175,239	757,355	821,724	4,271,484	4,335,415
A. Equity	79,336	77,423	358,488	363,049	2,021,871	1,915,446
I. Called-up share capital	600	600	2,711	2,813	15,291	14,844
II. Share premium	44,554	44,637	201,324	209,308	1,135,470	1,104,309
III. Revaluation reserve	19,037	16,381	86,021	76,811	485,158	405,254
IV. Legal and statutory reserves	38	37	172	173	968	915
V. Other reserves	1,533	4,190	6,927	19,648	39,069	103,661
VI. Retained earnings	9,945	13,612	44,939	63,830	253,456	336,765
Profit for the year	3,667	-1,975	16,570	-9,260	93,453	-48,858
Treasury shares	-38	-58	-172	-274	-968	-1,443
C. Long-term debt	59,403	69,394	268,418	325,401	1,513,875	1,716,815
2. Other bonds and private loans	57,223	67,204	258,569	315,131	1,458,328	1,662,632
7. Accounts payable to group companies	2,180	2,190	9,849	10,270	55,547	54,183
D. Current liabilities	28,869	28,422	130,449	133,274	735,735	703,154
2. Other bonds and private loans	24,107	23,026	108,930	107,973	614,367	569,663
5. Trade creditors	1,008	426	4,556	1,999	25,697	10,549
7. Accounts payable to group companies	3,493	3,540	15,784	16,601	89,019	87,588
11. Other liabilities	12	325	54	1,525	306	8,045
12. Accruals and deferred income	249	1,104	1,125	5,176	6,346	27,309
Equity and liabilities	167,608	175,239	757,355	821,724	4,271,481	4,335,415
No. of shares outstanding in thousand	56,252	56,292	56,252	56,292	56,252	56,292
Book value per share outstanding	1.410	1.375	6.373	6.449	35.943	34.027

14. Board of directors statement

The board of directors hereby represents, to the best of its knowledge, that the quarterly and year-to-date financial statements of the Company and its consolidated subsidiaries for the period ended 30 June 2022 are prepared in accordance with the applicable accounting standards and that they give a true and fair view of the assets, liabilities, financial position and the result of the Company and its consolidated subsidiaries, and that the Management Report for the period ended 30 June 2022 gives a true and fair view of the most important events that have occurred during the reporting period.

Amsterdam, 11 August 2022

15. Investor relations contact

Emeline Parry, Investor relations & Sustainability manager E-mail: emeline.parry@photonenergy.com

Photon Energy N.V. Barbara Strozzilaan 201 1083 HN Amsterdam The Netherlands

Phone: +420 277 002 910 Web: www.photonenergy.com

Georg Hotar, member of the board of directors Michael Gartner, member of the board of directors

Photon Energy N.V. Interim Consolidated Financial Statements

For the Period of 6 Months Ended 30 June 2022

Consolidated Statement of Comprehensive Income

Revenue 8 32,367 14,425 Other income 79 - Raw materials and consumables used -11,939 -3,225 Solar levy -1,094 -452 Personnel expenses -3,918 -3,286 Other expenses -5,351 -3,343 Earnings before interest, taxes, depreciation & amortisation (EBITDA) 10,143 4,120 Depreciation 9 -4,350 -4,666 Impairment charges -662 - Gain (loss) on disposal of investments 0 -79 Share of profit equity-accounted investments (net of tax) 38 118 Results from operating activities (EBIT) 5,169 -507 Financial income 24 26 Financial expenses 15 -4,292 -3,312 Revaluation of derivatives 369 178 Profit/loss before taxation (EBT) 1,270 -3,615 Income tax due/deferred -731 -422 Profit/loss from continuing operations 539 -4,037 Profit/loss 539 -4,037 Other comprehensive income (loss) Items that will not be reclassified subsequently to profit or loss Revaluation of property, plant and equipment 433 - Revaluation of other investments 13 0 3,358 Items that will be reclassified subsequently to profit or loss Foreign currency translation difference - foreign operations 13 -531 1,982 Derivatives (hedging) 13 1,885 967 Items that will be reclassified subsequently to profit or loss – related to JV Derivatives (hedging) 9 28 Other comprehensive income 1,796 6,335 Total comprehensive income 2,335 2,297 Profit/loss attributable to: Attributable to the owners of the company 575 -3,964 Attributable to non-controlling interest -36 -74 Profit/loss for the year 539 -4,037 Total comprehensive income attributable to: Attributable to the owners of the company 2,371 2,371 Attributable to non-controlling interest -36 -74 Total comprehensive income 2,335 2,297 Earnings per share Earnings per share (basic) (in EUR) 14 0.010 -0.076 Earnings per share (diluted) (in EUR) 14 0.010 -0.066	In thousands of EUR	Note	6 months to 30 June 2022	6 months to 30 June 2021
	Total comprehensive income per share (in EUR)	14	0.042	0.045

The notes on pages 39 to 61 are an integral part of these financial statements.

Consolidated Statement of Financial Position

In thousands of EUR	Note	30 June 2022	31 December 2021
Assets
Intangible assets		656	844
Property, plant and equipment	9	125,104	127,492
Right of use- leased assets		2,404	2,138
Long term advances for property, plant equipment		163	98
Investments in equity-accounted investees	6.4	4,850	1,626
Other receivables – non-current		523	529
Other non-current financial assets	10	6,966	9,736
Non-current assets		140,667	142,463
Inventories		4,394	2,197
Contract asset	11	978	1,131
Trade receivables		10,203	3,756
Other receivables		13,837	5,327
Loans to related parties	19	2,299	1,811
Current income tax receivable		0	303
Prepaid expenses		366	268
Liquid assets	12	29,510	39,362
Cash and cash equivalents		20,499	32,506
Liquid assets with restriction on disposition		5,256	3,629
Precious metals		3,755	3,227
Current assets		61,589	54,155
Total assets		202,255	196,618
Equity & Liabilities
Equity	13
Share capital		600	600
Share premium		31,526	31,443
Revaluation reserve		39,252	40,251
Legal reserve		13	13
Hedging reserve		3,933	2,039
Currency translation reserve		1,490	2,022
Retained earnings		-22,674	-24,680
Other capital funds		38	38
Treasury shares held		-58	-38
Equity attributable to owners of the Company		54 121	51,688
Non-controlling interests		-186	-150
Total equity		53,935	51,538
Liabilities
Loans and borrowings	15	34,988	41,106
Issued bonds	15	67,204	57,223
Lease liability	15	1,960	1,676
Other non-current liabilities	15	290	373
Provisions		548	545
Deferred tax liabilities		10,253	10,199
Non-current liabilities		115,243	111,122
Loans and borrowings	15	4,769	4,354
Issued bonds	15	23,026	24,107
Trade payables		1,128	2,275
Other payables		1,721	2,202
Contract liabilities	11	907	423
Lease liability	15	580	597
Current tax liabilities		946	0
Current liabilities		33,076	33,958
Total liabilities		148,319	145,080
Total equity and liabilities		202,255	196,618

The notes on pages 39 to 61 are an integral part of these financial statements.

Consolidated Statement of Changes in Equity

In thousands of EUR	Note	Share capital	Share premium	Statutory reserve fund	Revaluation reserve	Currency translation reserve	Hedging reserve	Other capital funds	Own treasury shares	Retained earnings	TOTAL	Non controlling interests	TOTAL EQUITY
BALANCE at 1 January 2021		600	23,946	13	40,679	-2,579	-325	87	-87	-22,138	40,196	-121	40,075
Profit/loss for the year		-	-	-	-	-	-	-	-	-4,037	-4,037	-74	-4,111
Increase in revaluation of PPE		-	-	-	-	-	-	-	-	-	-	-	-
Change in fair value of derivatives	16	-	-	-	-	-	967	-	-	-	967	-	967
Change in fair value of other investments (FVOCI)	10	-	-	-	3,358	-	-	-	-	-	3,358	-	3,358
Foreign currency translation differences		-	-	-	-	1,982	-	-	-	-	1,982	-	1,982
Change in fair value of derivatives (JV share)	16	-	-	-	-	-	28	-	-	-	28	-	28
Other comprehensive income		-	-	-	3,358	1,982	995	-	-	-	6,335	-	6,335
Total comprehensive income		-	-	-	3,358	1,982	995	-	-	-4,037	2,297	-74	2,224
Recycled from revaluation reserve to retained earnings		-	-	-	-2,013	1,832	-	-	-	2,013	1,832	-	1,832
Transfer of own shares to employees / New shares placed with share premium	13	-	7,444	-	-	-	-	-55	55	-	7,444	-	7,444
BALANCE at 30 June 2021		600	31,390	13	42,024	1,234	670	32	-32	-24,162	51,768	-195	51,573

In thousands of EUR	Note	Share capital	Share premium	Statutory reserve fund	Revaluation reserve	Currency translation reserve	Hedging reserve	Other capital funds	Own treasury shares	Retained earnings	TOTAL	Non controlling interests	TOTAL EQUITY
BALANCE at 1 January 2022		600	31,443	13	40,251	2,022	2,039	38	-38	-24,680	51,688	-150	51,538
Profit/loss for the year		-	-	-	-	-	-	-	-	575	575	-36	539
Increase in revaluation of PPE	9,13	-	-	-	433	-	-	-	-	-	433	-	433
Change in fair value of derivatives (net of DT)	16	-	-	-	-	-	1,885	-	-	-	1,885	-	1,885
Change in fair value of other investments (FVOCI)	10	-	-	-	-	-	-	-	-	-	-	-	-
Foreign currency translation differences		-	-	-	-	-531	-	-	-	-	-531	-	-531
Change in fair value of derivatives (JV share)	16	-	-	-	-	-	9	-	-	-	9	-	9
Other comprehensive income		-	-	-	433	-531	1,894	-	-	-	1,796	-	1,796
Total comprehensive income		-	-	-	433	-531	1,894	-	-	575	2,371	-36	2,335
New shares placed with share premium	13	-	82	-	-	-	-	-	-20	-	62	-	62
Recycled from revaluation reserve to retained earnings		-	-	-	-1,431		-	-	-	1,431	0	-	0
BALANCE at 30 June 2022		600	31,526	13	39,252	1,490	3,933	38	-58	-22,674	54,121	-186	53,935

The notes on pages 39 to 61 are an integral part of these financial statements.

Consolidated Statement of Cash Flows

In thousands of EUR	Note	6 months to 30 June 2022	6 months to 30 June 2021
Cash flows from operating activities
Profit/loss before tax		1,270	-3,615
Adjustments for:
Depreciation	9	4,350	4,666
Impairment charges		662	-
Share of profit of equity-accounted investments		-38	-118
Gain on disposal of financial investments		0	79
Net finance costs		3,899	3,108
Other non-cash items		256	270
Changes in:
Trade and other receivables		-12,632	-2,902
Gross amount due from customers for contract work		152	-219
Prepaid expenses		-98	26
Inventories		-2,197	-80
Trade and other payables		-1,227	-2,467
Income tax paid (advances paid)		-1,092	60
Net cash from operating activities		-6,696	-1,583
Cash flows from investing activities
Acquisition of property, plant and equipment	9	-3,873	-3,385
Acquisition of subsidiaries, associates, joint ventures		-15	-
Acquisition of precious metals	12	-277	-2,849
Acquisition of other non-current financial investments	10	-102	-1,436
Net cash used in investing activities		-4,267	-7,670
Cash flows from financing activities
Proceeds from issuance of ordinary shares/Repurchase of treasury shares	13	-21	7,754
Proceeds from borrowings	15	0	15,416
Transfer to/from restricted cash account	12	-1,657	-320
Repayment of borrowings	15	-3,609	-4,887
Repayment of principal element of lease liability	15	-310	-174
Proceeds from issuing bonds	15	10,000	761
Payment of placement fee	15	-108	-
Repayment of long term liabilities/bonds	15	-1,310	-
Interest payments	15	-4,028	-3,115
Net cash from financing activities		-1,043	15,434
Net decrease/increase in cash and cash equivalents		-12,006	6,181
Cash and cash equivalents at 1 January		32 506	9,893
Cash and cash equivalents at 30 June		20 499	16,074

The notes on pages 39 to 61 are an integral part of these interim financial statements.

Notes to the Interim Consolidated Financial Statements

For the Period of 6 Months ended 30 June 2022

1. Reporting Entity

Photon Energy N.V. ("Photon Energy" or the "Company"), ID 51447126, is a joint-stock company incorporated under the laws of Netherlands on 9 December 2010.

The Group is engaged in the development of photovoltaic power plants. This activity involves securing suitable sites by purchase or long-term lease, obtaining all licenses and permits, the design,

2. Basis of Preparation

2.1 Basis of Preparation and Statement of Compliance with IFRS

The Interim Consolidated Financial Statements are for the six months ended 30 June 2022 and are presented in EUR. The functional currencies used in the Group are CZK for Czech subsidiaries, EUR for Dutch, German and Slovak companies, CHF for Swiss subsidiary, HUF for Hungarian entities, AUD for Australian subsidiaries, ROM for Romanian entities and PLN for Polish entities. All financial information presented in EUR has been rounded to the nearest thousand.

The Interim Consolidated Financial Statements have been prepared in accordance with IAS 34 'Interim Financial Reporting'. They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the consolidated financial statements for the year ended 31 December 2021.

Photon Energy N.V. is the Group's ultimate parent company. It is a limited liability company incorporated and domiciled in Netherlands. The address of its registered office and principal place of business is Barbara Strozzilaan 201, 1083HN Amsterdam, Netherlands. Photon Energy NV's shares are listed on the regulated installation of photovoltaic equipment, financing, operations and maintenance. Photon Energy pursues a comprehensive strategy of focusing both on green-field and rooftop installations while trying to cover the largest possible part of the value chain and lifecycle of the power plant. In addition, the Group launched a new service line Water which offers comprehensive services in the fields of contaminated land and ground water remediation and water purification.

markets of the Warsaw and Prague Stock Exchanges, as well as on the Quotation Board of the Frankfurt Stock Exchange. Trading of the shares on regulated markets on the Warsaw Stock Exchange and Prague Stock Exchange commenced on 5 January 2021. Trading of the Company's shares on the Quotation Board of the Open Market of the Frankfurt Stock Exchange (FSX) commenced on 11 January 2021. The listings did not involve any issuance of new shares.

The bond is traded on the Open Market of the Frankfurt Stock exchange, and on the stock exchanges in Berlin, Hamburg, Hannover, Munich and Stuttgart.

The Interim Financial Statements were approved for issue by the Board of Directors on 11 August 2022.

The Interim Consolidated Financial Statements are unaudited.

Going Concern

In preparing these accounts on a going concern basis, management used its best estimates to forecast cash movements over the next 12 months from the date of these interim accounts. As per today, management believes the Company will be able to repay its liabilities and ensure the further development of the Group.

3. Application of New and Revised EU IFRSs

3.1 New Standards Adopted at 1 January 2022

There are no accounting pronouncements which have become effective from 1 January 2022 that have a significant impact on the Group's interim consolidated financial statements.

4. Significant Accounting Policies

The Interim Financial Statements have been prepared in accordance with the accounting policies adopted in the Group's most recent annual financial statements for the year ended 31 December 2021.

5. Estimates and Judgements

When preparing the Interim Consolidated Financial Statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results.

The judgements, estimates and assumptions applied in the Interim Consolidated Financial Statements, including the key sources of estimation uncertainty, were the same as those applied in the Group's last annual consolidated financial statements for the year ended 31 December 2021, except for following changes:

As of 1 January 2022, the Company prolonged estimated useful lives for the calculation of depreciation of powerplants operating in Slovakia, Czech Republic and Hungary to 25 years. Those prolonged estimated useful lives are in line with Company's intentions to operate these assets for extended period. As the change in estimated useful live represent change in estimate, it has been adopted prospectively and no restatement of prior year periods has been done.

Estimate of income tax liabilities determined in the Interim Financial Statements are using the estimated average annual effective income tax rate applied to the pre-tax income of the interim period.

6. Significant Events and Transactions

6.1 Establishment of New Subsidiaries

During first 6 months of 2022, Photon Energy N.V. (directly or via its subsidiaries) incorporated the following subsidiaries:

• ► On 28 February 2022, Photon Energy projects became 95% shareholder and Photon Energy Soluions CZ became 5% shareholder Kenton Solar Srl., Lancaster Solar Srl., and Perivale Solar Srl.
• ► On 7 March 2022, Photon Energy projects became 95% shareholder and Photon Energy Soluions CZ became 5% shareholder of Weston Solar Srl. and Harlow Solar Srl.
• ► On 14 March 2022, Photon Energy Projects s.r.o. became 95% shareholder and Photon Energy Solutions CZ became 5% shareholder of Brentford Solar Srl., Camberwell Solar Srl., Romford Solar Srl., and Stratford Solar Srl., Romania.
• ► On 18 March 2022, Photon Energy N.V. became 95% shareholder and Photon Energy Projects s.r.o. became 5% shareholder of Photon Energy Engineering Romania SRL. Romania.
• ► On 10 June 2022, Photon Energy N.V. became 100% shareholder of Photon Energy Solutions AG, and Photon Property AG, Switzerland.

6.2 Acquisition of New Subsidiaries and Associates

► On 17 January 2022, KORADOL AG became 100% shareholder of Photon SPV 3 s.r.o., Photon SPV 4 s.r.o,. Photon SPV 6 s.r.o., Photon SPV 8 s.r.o., Photon SPV 10 s.r.o., Exit 90 SPV s.r.o., Onyx Energy s.r.o., Onyx Energy projekt II s.r.o., and Kaliopé Property s.r.o., Czech Republic.

As the Group had already significant control over these entities, these acquisitions were considered to be transactions under common control and had no impact to consolidated accounts.

► On 10 February 2022, ALFEMO AG became 90% shareholder and KORADOL AG became 10% shareholder of Siria Solar Srl. No goodwill has been recognized at acquisition.

6.3. Other Developments in H1 2022

• ► On 7 February 2022, Photon Energy NV. acquired (new series D shares have been registered by the court) additional almost 12% of Lerta S.A., Poland
• ► On 22 March 2022, PE Solar Technology Ltd. was dissolved
• ► On 6 April 2022, Photon Energy Solutions s.r.o. was renamed to Photon Energy Engineering s.r.o.
• ► On 27 April 2022, Photon SPV 1 s.r.o. was renamed to Photon Energy Solutions CZ s.r.o.,
• ► On 1 July 2022, Photon Energy Solutions CZ s.r.o. changed its legal form to Photon Energy Solutions CZ a.s.
• ► On 24 May 2022, Solar Age Polska S.A. was renamed to Photon Energy Solutions PL S.A.

There were no other changes in the group structure during six months period to 30 June 2022.

6.4. Financial Information for the Joint Ventures and Associates

Joint ventures

Total investments in equity-accounted investees amounting to EUR 4,850 thousand (31 December 2021: EUR 1,626 thousand) represent the share in the joint ventures owned by the Group of EUR 1,768 thousand (31 December 2021: EUR 1,626 thousand) and investment in associates of EUR 3,082 thousand (31 December 2021: EUR 0)

Associates

Following the execution of the convertible loan agreement, 2,500,000 newly issued shares (representing additional 12%) of Lerta S.A. were registered on 7 February 2022. Total number of shares of Lerta S.A. held by Photon Energy N.V. amounts to 4,129,728 and represents 23.98% share.

Following the registration of new shares and the fact, that the Group obtained significant influence, but not control, over the financial and operating policies, the investment was reclassified into Investments in equity-accounted investments and the Group recognises its share of the profit or loss and other comprehensive income (from the date that significant influence has been obtained) in Statement of Comprehensive Income.

Disposals in H1 2022

There were no disposals of investments during H1 of 2022.

Disposals in 2021

In April 2021, the Group announced an agreement to exchange project rights with its development partner Canadian Solar. As a result, Photon Energy will continue developing the 160 MWp Maryvale Solar Farm independently, while further development of the Gunning Solar Farm and the Suntop2 Solar Farm will be handled by Canadian Solar. Of the three projects, Maryvale is in the furthest stages of development.

Under the terms of the agreement, Photon Energy has exchanged its 49% stake in the 220 MWp Gunning Solar Farm and 25% stake in the 200 MWp Suntop2 Solar Farm for Canadian Solar's stake in the Maryvale Solar Farm. The Group now possesses a 65% stake in the Maryvale Solar Farm and will work with its original local codevelopment partner (which owns the remaining 35% stake) to undertake preliminary design and grid connection studies, followed by a connection agreement which is expected to be reached within 12 months.

Overall result from the disposal amounted to loss of EUR 79 thousand.

7. Segment Reporting

An operating segment is a component of the Group that engages in business activities from which it may earn revenues or incur expenses, including revenues and expenses that relate to transactions with any of the Group's other components. All operating segments' operating results are reviewed regularly by the Group's management and Board of directors to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. The chief operating decision maker (CODM) has been identified as the Board of Directors and the CFO of the Group.

The Board of Directors identified the following segments to be reported:

• ► Solutions: Development, engineering and construction services of-turn-key photovoltaic systems' installations for external clients and Photon Energy). This segment was formerly named Energy Solutions and included as well wholesale of technology, which became due to its size an own reportable segment. Further activities of project development were taken out of this segment and are reported now under "Others", since the nature of the activity changed from purely internal development for our own projects to project development for external partners,
• ► Technology: Wholesale, import and export of FVE components,
• ► Investments (Electricity Generation): Investment into photovoltaic power plants and generation of revenues from production of electricity (this segment includes SPV that finished building of photovoltaic power plants and those that are connected to the distribution network and produce electricity). Previously this segment was split into "Production of Electricity" and "PV Investments" as those income is generated by the same assets,
• ► Operations & Maintenance: Operations, maintenance and PVPP supervision. This segment includes also the services of Inverter Cardio and Monitoring and Control,
• ► Other segments: Other, not related to any of the above mentioned segments. Others include project development, water technology and remediation services and other less significant activities. None of these activities meets any of the quantitative thresholds for determining reportable segments in neither 2022 nor 2021.

Segment results that are reported include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Interest income, interest expense and income tax charges are allocated directly to the segments. Segment capital expenditure is the total cost incurred during the reporting period to acquire property, plant and equipment, and intangible assets other than goodwill.

Factors that Management Used to Identify the Reportable Segments

The Group's segments are strategic business units that focus on different business activities. They are managed separately because each business unit requires different processes.

Measurement of Operating Segment Profit or Loss, Assets and Liabilities

The Group's management and directors review financial information prepared based on IFRS as adopted by EU adjusted to meet the requirements of internal reporting. The financial information does not differ from IFRS as adopted by EU.

The Group's management and directors evaluate the segments based on total comprehensive income which is considered to be the key measure.

During the six month period to 30 June 2022, there have been no changes from prior periods in the measurement methods used to determine operating segments and reported segment profit or loss.

The revenues and profit generated by each of the Group's operating segments and segment assets and liabilities are summarised as follows:

Operating segments for the period from 1 January 2022 to 30 June 2022

In thousands of EUR	Solutions	Technology	Investments	Operations and Maintenance	Other	Total for segments before elimination	Elimination	Consolidated financial information
External revenues from the sale of products, goods & services	1,458	13,507	15,913	1,294	195	32,367	0	32,367
Internal revenues from the sale of products, goods & services	887	1,552	0	1,038	3,832	7,309	-7,309	0
Total revenues	2,345	15,059	15,913	2,332	4,027	39,676	-7,309	32,367
Other external income	-17	5	8	12	81	89	-10	79
Raw materials and consumables used	-713	-12,770	-28	-107	-21	-13,638	1,699	-11,939
Solar levy	0	0	-1,094	0	0	-1,094	0	-1,094
Personnel expenses and other expenses	-2,660	-652	-2,026	-2,040	-5,108	-12,486	3,216	-9 270
EBITDA	-1,045	1,643	12,773	197	-1,020	12,547	-2,404	10 143
Depreciation	-26	-17	-3,644	-298	-365	-4,350	0	-4 350
Impairment charges	0	-655	0	-7	0	-662	0	-662
Gain/(Loss) on disposal of investments	0	0	0	0	0	0	0	0
Profit/loss share in entities in equivalency	0	0	38	0	0	38	0	38
Result from operating activities (EBIT)	-1,071	970	9,167	-108	-1,385	7,573	-2,404	5,169
Financial income	585	-47	-317	89	2,001	2,310	-2,285	24
Interest expense	-260	-100	-1,851	-226	-4,140	-6,578	2,285	-4,292
Other net financial expenses	0	0	0	0	0	0	0	0
Revaluation of derivatives	0	0	0	0	369	369	0	369
Profit/loss before taxation (EBT)	-746	823	6,999	-245	-3,156	3,674	-2,404	1,270
Income Tax (income and deferred)	0	-1	-723	0	-6	-731	0	-731
Profit/loss after taxation	-746	822	6,275	-245	-3,162	2,943	-2,404	539
Other comprehensive income	99	-12	1,258	74	376	1,796	0	1,796
Total comprehensive Income	-647	810	7,533	-171	-2,786	4,740	-2,404	2,335
Assets	29,212	16,350	161,019	15,188	202,510	424,279	-222,024	202,255
Liabilities	-30,201	-15,352	-103,366	-26,444	-192,576	-367,938	219,620	-148,319
Investments in JV and associates accounted for by equity method	0	0	4,850	0	0	4,850	0	4 850
Additions to non-current assets	0	0	3,873	0	0	3,873	0	3,873

Operating segments for the period from 1 January 2021 to 30 June 2021

In thousands of EUR	Solutions	Technology	Investments	Operations and Maintenance	Other	Total for segments before elimination	Elimination	Consolidated financial information
External revenues from the sale of products, goods & services	1,392	1,845	9,828	1,181	178	14,425	-	14,425
Internal revenues from the sale of products, goods & services	949	10	1,295	1,027	3,036	6,317	-6,317	0
Total revenues	2,342	1,855	11,123	2,208	3,214	20,742	-6,317	14,425
Other external income	-	-	-	-	-	-	-	-
Raw materials and consumables used	-209	-1,597	-1,299	-106	-14	-3,225	-	-3,225
Solar levy	-	-	-452	-	-	-452	-	-452
Personnel expenses and other expenses	-3 604	-282	-1,231	-2,267	-3,863	-11,249	4,620	-6,628
EBITDA	-1,472	-24	8,141	-165	-663	5,817	-1,697	4,120
Depreciation	-21	-	-4,027	-369	-249	-4,666	-	-4,666
Impairment charges	-	-	-	-	-	-	-	-
Gain/(Loss) on disposal of investments	-	-	-	-	-79	-79	-	-79
Profit/loss share in entities in equivalency	-	-	118	-	-	118	-	118
Result from operating activities (EBIT)	-1,492	-24	4,232	-533	-992	1,190	-1,697	-507
Financial income	-	-	-	-	26	26	-	26
Interest expense	-164	-59	-1,333	-200	-2,740	-4,496	1,381	-3,115
Other net financial expenses	-414	4	-406	162	458	-196	-	-196
Revaluation of derivatives	-	-	178	-	-	178	-	178
Profit/loss before taxation (EBT)	-2,071	-80	2,671	-572	-3,248	-3,299	-316	-3,615
Income Tax (income and deferred)	-150	-	-272	-	-	-422	-	-422
Profit/loss after taxation	-2,221	-80	2,399	-572	-3,248	-3,721	-316	-4,037
Other comprehensive income	318	-5	2,663	-26	3,385	6,335	-	6,335
Total comprehensive Income	-1,903	-85	5,062	-597	138	2,614	-316	2,298
Assets	28,419	5,398	152,002	12,794	147,353	345,966	-168,748	177,218
Liabilities	-26,789	-5,355	-108,128	-19,757	-118,385	-278,415	147,162	-131,253
Investments in JV accounted for by equity method	-	-	2,214	-	-	2,214	-	2,214
Additions to non-current assets	-	-	3,587	-	-	3,587	-	3,587

7. Operating Segments (Continued)

All the operational segments are managed on an international basis (not on a country level). In H1 2022 and H1 2021 the Group operated in the Czech Republic, Slovak Republic, Germany, Hungary, Australia, Switzerland, Romania, Poland and the Netherlands with headquarters in the Netherlands.

In first 6 months of 2022 and in 2021, revenues were generated in all above mentioned markets, except of the Netherlands, Romania, Poland and Peru. Non-current assets (power plants) are located in the Czech Republic, Slovak Republic, Hungary and Australia.

For the booking of transactions between the segments, the same rules for the recognition are applied as for the third parties.

Major Customer

The Group has many customers. For the companies selling electricity, there is usually only one distribution company, which buys produced electricity. These local electricity distributors further deliver and resell electricity to final customers. Distributors are obliged to purchase all of the electricity production for the price based on Feed in Tariff prices or market prices. The Group as such is not dependent on any individual customer.

Revenues from customers over 10% of total revenues

In thousands of EUR	6 months to 30 June 2022	6 months to 30 June 2021
Lerta Energy HU Kft.(including CZ branch)	2,869
E.ON Energie, a.s.	-*	3,077
MAVIR Zrt.	-*	2,025
Total revenue from customers over 10% of total revenues	2,869	5,102
Total revenue from customers	26,757	13,039
Total revenue	32,367	14,425

*did not exceed 10% of total revenues

The Czech SPVs producing electricity opted for the green bonus support for 2022 which is paid by OTE, a.s. ("OTE" Czech.electricity market operator). In 2021, no green bonus was paid by OTE as the produced electricity was sold directly to the E.ON Energie, a.s. for the fixed feed in tarif. In 2022 in addition, the Czech SPVs sold the produced electricity to Solar Global Energy a.s. and Lerta Energy HU Kft at market prices. Total revenues from sale of electricity to Solar Global Energy a.s. did not exceed 10% of total revenues from customers.

Revenues from OTE, a.s. of EUR 5,327 thousand in 6 months to 30 June 2022 (6 months to 30 June 2021: EUR 0) do not represent revenues from customers and represent green bonus received for produced electricity by Czech SPVs.

Revenues from Lerta Energy HU Kft, E.ON Energie, a.s. and MA-VIR Zrt. are presented in the Segment Investments in 2021 and represent revenues from sale of electricity from various PVPs.

8. Revenue

The Group derives revenue from the transfer of goods and services at a point in time and over time in the following major product lines and geographical regions:

Timing of revenues:

In thousands of EUR	6 months to 30 June 2022	6 months to 30 June 2021
At a point of time	13,507	1,845
Over time	13,250	11,194
Total revenue from contracts with customers	26,757	13,039
Compensations for sales from electricity generation (OTE and OKTE)	5,610	1,386
Total revenue	32,367	14,425

Revenues by major revenue types:

In thousands of EUR	6 months to 30 June 2022	6 months to 30 June 2021
Sale of electricity	10,303	8,442
Revenues from EPC contracts	1,458	1,391
Sale of goods and technologies	13,507	1,845
Rendering of services	1,489	1,361
Total revenue from contracts with customers	26,757	13,039
Compensations for sales from electricity generation	5,610	1,386
Total revenue	32,367	14,425

The Group uses various revenue models for PVP generating revenues from sale of electricity – fixed feed in tariffs, contracts for difference, and the merchant model.

In 2022, Czech SPVs opted for the green bonus scheme, under which produced electricity is sold to the distributors at market price and a green bonus set as fixed amount per MWh produced is received from OTE.

During 2022, some of the Hungarian SPVs opted out from KAT/Metar fixed feed in tariffs and are also selling produced electricity to electricity traders at market price.

As the Group operates in regulated business under various models for PVP revenues from sales of electricity, the Group invoices the revenues from sale of electricity to different partners, including government agencies which in fact does not receive any generated electricity, such as the short-term electricity market operator OKTE, a.s. ("OKTE") in Slovakia and OTE, a.s in Czech Republic. Total amount of compensations for sales from electricity generation invoiced to OKTE and OTE in first half of 2022 amounted to EUR 5,610 thousand (H1 of 2021: EUR 1,386 thousand).

Even though the revenues were invoiced in 2022 and 2021 to government agency, the Group does not consider them to be government grants and recognised them as revenues from sale of electricity as these revenues are representing core activity of the Group and are clearly linked to revenue model that is determined for each PVP.

Revenues by geographical split:

In thousands of EUR	6 months to 30 June 2022	6 months to 30 June 2021
Czech Republic	17,534	8,071
Slovak Republic	1,184	303
Australia	1,144	1,134
Germany	574	-
Hungary	6,321	3,531
Other	-	-
Total revenue from contracts with customers	26,757	13,039
Compensations for sales from electricity generation – Czech Republic and Slovakia	5,610	1,386
Total revenue	32,367	14,425

9. Property, Plant and Equipment

In thousands of EUR	Land	Photovoltaic power plant	Other equipment	In progress	Total Corrected
Net carrying amounts
Gross revalued amount at 1 January 2022	5,169	182,473	1,628	3,052	192,322
Accumulated depreciation at 1 January 2022	0	-64,208	-622	0	-64,830
Net carrying amounts 1 January 2022	5,169	118,265	1,006	3,052	127,492
Other Additions/Transfers	142	1,493	1,037	1,201	3,873
Revaluation increase	0	475	0	0	475
Depreciation for the year	0	-3,664	-686	0	-4,350
Effect of movements in exchange rates	-87	-2,624	-401	727	-2,385
Net carrying amounts
Gross revalued amount at 30 June 2022	5,223	179,590	2,665	4,980	192,458
Accumulated depreciation at 30 June 2022	0	-65,645	-1,709	0	-67,354
Net carrying amounts 30 June 2022	5,223	113,945	956	4,980	125,104
Net carrying amounts
Gross revalued amount at 31 December 2020	4,473	162,341	1,192	9,697	177,703
Accumulated depreciation at 31 December 2020	0	-51,076	-297	0	-51,373
Net carrying amounts 31 December 2020	4,473	111,265	895	9,697	126,330
Other Additions/Transfers	0	0		3,385	3,385
Revaluation increase	0	0	0	0	0
Depreciation for the year	0	-4,611	-55	0	-4,666
Effect of movements in exchange rates	352	2,103	116	202	2,773
Net carrying amounts
Gross revalued amount at 30 June 2021	4,825	165,230	1192	13,284	184,531
Accumulated depreciation at 30 June 2021	0	-56,473	-236	0	-56,709
Net carrying amounts 30 June 2021	4,825	108,757	956	13,284	127,822

Non-current assets by geographical location (i)

In thousands of EUR	30 June 2022	31 December 2021
The Czech Republic	52,777	54,276
The Slovak Republic	11,844	12,077
Netherlands	0	66
Hungary	44,319	48,396
Australia	23,502	22,800
Poland	3,936	3,670
Romania	4,289	1,178
Total	140,667	142,463

Note: (i) Non-current assets presented consist mainly of property, plant and equipment (lands, photovoltaic power plants, other equipment, and assets under construction), and assets in progress.

Revalued amount of EUR 119,168 thousand as at 30 June 2022 (31 December 2021: EUR 123,434 thousand) includes net carrying amount of photovoltaic power plants and value of land connected to the photovoltaic power plants of EUR 5,223 thousand as at 30 June 2021 (31 December 2021: EUR 5,169 thousand) which are included under Land.

During H1 2022, the Group performed revaluation of a newly connected power plant in Hungary resulting in an increase of the value of property, plant, and equipment by EUR 433 thousand, including the impact of deferred tax.

During H1 2021, the Group did not perform any revaluation of newly connected or already connected powerplants.

Property, plant and equipment under construction

Property, plant and equipment under construction equaled to the amount of EUR 4,980 thousand (31 December 2021: EUR 3,052 thousand) comprising mainly of power plants under construction in Hungary and Romania (H1 2021: Australia).

Sale of property, plant and equipment

There were no sales of property, plant, and equipment in H1 2022 nor 1H 2021.

10. Other Financial Investments

Other non-current investments include following investments:

In thousands of EUR	30 June 2022	31 December 2021
Other financial investments
Other financial assets at FVTPL	1,612	1,242
Other financial assets at FVOCI	5,354	8,494
Total non-current financial assets	6,966	9,736

The table below discloses investments in equity securities at 30 June 2022 by measurement categories and classes:

In thousands of EUR	Other financial assets at FVTPL	Other financial assets at FVOCI	Total
Other financial investments
Corporate shares	-	5,355	5,355
Share options (note 16)	1,611	-	1,611
Total Other financial investments at 31 December 2021	1,611	5,355	6,966

The table below discloses investments in equity securities at 31 December 2021 by measurement categories and classes:

In thousands of EUR	Other financial assets at FVTPL	Other financial assets at FVOCI	Total
Other financial investments
Corporate shares	-	6,759	6,759
Share options	1,242	-	1,242
Shares not yet registered	-	1,735	1,735
Total Other financial investments at 31 December 2021	1,242	8,494	9,736

(a) Other financial assets at FVOCI – Corporate shares

At 30 June 2022, the Group designated investments disclosed in the following table as equity securities at FVOCI. The FVOCI designation was made because the investments are expected to be held for strategic purposes rather than with a view to profit on a subsequent sale, and there are no plans to dispose of these investments in the short or medium term.

In thousands of EUR	Fair value at 30 June 2022	Dividend income recognised for the period H1 2022
Other financial assets at FVOCI
Investment in Raygen Resources Pty Ltd ordinary shares	3,434	0
Investment in Raygen Resources Pty Ltd preference shares	1,921	0
Total Other financial assets at FVOCI	5,355	0

At 31 December 2021, the Group designated investments disclosed in the following table as equity securities at FVOCI. The FVOCI designation was made because the investments are expected to be held for strategic purposes rather than with a view to profit on a subsequent sale, and there are no plans to dispose of these investments in the short or medium term.

In thousands of EUR	Fair value at 31 December 2021	Dividend income recognised for the period H1 2021
Other financial assets at FVOCI
Investment in Raygen Resources Pty Ltd ordinary shares	3,434	0
Investment in Raygen Resources Pty Ltd preference shares	1,921	0
Investment in Lerta SA ordinary shares	1,404	0
Shares not yet registered (Lerta SA)	1,735	0
Total Other financial assets at FVOCI	8,494	0

At 30 June 2022 and 31 December 2021 securities at FVOCI include equity securities which are not publicly traded. Due to the nature of the local financial markets, it is not possible to obtain current market value for these investments. For these investments, fair value is estimated by reference to subscription value of additional shares placed.

Reconciliation of movements in Other financial assets at FVOCI follows:

In thousands of EUR	Investment in Raygen Resources Pty Ltd	Investment in Lerta SA	Total
Other financial assets at FVOCI as at 1 January 2021	1,138	904	2,042
Additional investments in other financial assets at cost	1,897	163	2,060
Revaluation recognised in OCI	2,320	337	2,657
Shares not yet registered	0	1,735	1,735
Other financial assets at FVOCI as at 31 December 2021	5,355	3,139	8,494
Derecognition of FVOCI investment, recognition in Investments in equity accounted investments	0	-3,139	-3,139
Revaluation recognised in OCI	0	0	0
Other financial assets at FVOCI as at 30 June 2022	5,355	0	5,355

During H1 2022 the Group did not acquire any additional shares of of Raygen Resources Pty Ltd.

Following the execution of the convertible loan agreement, 2,500,000 newly issued shares (representing additional 12%) of Lerta S.A. were registered on 7 February 2022. Total number of shares of Lerta S.A. held by Photon Energy N.V. amounts to 4,129,728 and represents 23.98% share.

Following the registration of new shares and the fact, that the Group obtained significant influence, but not control, over the financial and operating policies, the investment was reclassified into Investments in equity-accounted investments and the Group recognises its share of the profit or loss and other comprehensive income (from the date that significant influence has been obtained) in Statement of Comprehensive Income.

11. Assets and Liabilities Arising from Contracts with Customers

The Group has recognised following assets and liabilities arising from contracts with customers:

In thousands of EUR	30 June 2022	31 December 2021
Current contract assets from contracts with customers	978	1,131
Loss allowance	0	0
Total current contract assets	978	1,131
Contract liabilities – advances from customers	907	423
Total current contract liabilities	907	423

Contract assets represents un-invoiced part of recognised revenue based on progress towards complete satisfaction. Invoiced amount of contract assets is reclassified to trade receivable upon its invoicing.

At 30 June 2022 the most significant part of the contract asset was represented by North East Water project in Australia of EUR 921 thousand (31 December 2021: EUR 753 thousand).

12. Liquid Assets

For the purposes of the consolidated statement of cash flows, cash and cash equivalents include cash on hand and at banks. Cash and cash equivalents at the end of the reporting period as shown in the consolidated statement of cash flows can be reconciled to the related items in the consolidated statement of financial position as follows:

thousand (H1 of 2021: EUR 80 thousand) was presented as Change in trade and other receivables. Movement in Cash with restriction on disposition relating to borrowings in H1 2022 of EUR 1,657 thousand (H1 2021: EUR 320 thousand) was presented in

Cash flows from financing activities.

In thousands of EUR	30 June 2022	31 December 2021
Cash and cash equivalents	20,499	32,506
Cash with restriction on disposition	5,256	3,629
Precious metals	3,755	3,227
Liquid assets	29,510	39,362

Cash with restriction on disposition includes mainly DSRA (debt service reserve accounts) and MRA (maintenance reserve accounts) for Slovak, Hungarian and Australian SPVs and guarantees issued.

Part of the movement on Cash with restriction on disposition related to operating activities of the Group in H1 of 2022 of EUR 30

13. Capital and Reserves

Share capital and share premium

Ordinary shares

In shares	30 June 2022	31 December 2021
On issue at 1 January	60,000,000	60,000,000
On issue at 31 December – fully paid	60,000,000	60,000,000

The Company's issued share capital is EUR 600,000 divided into 60,000,000 shares with a nominal value of EUR 0.01 each. The share capital is fully paid-up.

Ordinary shares

All shares rank equally with regard to the Company's residual assets.

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the shareholders' meetings of the Company.

Treasury shares

At 30 June 2022 treasury shares included 3,708,258 ordinary shares of the Company (31 December 2021: 3,747,635 ordinary shares) owned directly by the Company. These ordinary shares carry no voting rights at the Shareholders Meeting.

Share premium represents the excess of contributions received over the nominal value of shares issued. Proceeds from allocation of treasury shares to employees in excess to nominal value of shares are also recorded in Share premium. Nominal value of sold treasury shares is recorded against Treasury shares reserve.

Movement in share capital can be analysed as follows:

In thousands of EUR	Ordinary shares	Share premium	Treasury shares	Total
At 1 January 2022	600	31,443	-38	32,005
Treasury shares allocated to employees	-	82	-	82
Treasury share acquired from the market	-	-	-20	-20
At 30 June 2022	600	31,526	-58	32,067

In thousands of EUR	Ordinary shares	Share premium	Treasury shares	Total
At 1 January 2021	600	23,946	-87	24,459
Treasury shares allocated to employees	0	173	0	173
Treasury shares allocated to qualified investors	0	7,324	49	7,373
At 31 December 2021	600	31,443	-38	32,005

As of 30 June 2022 the shareholder structure was as follows:

Shareholder	No. of shares	% of capital	No. of votes at Shareholders Meeting	% of votes at Shareholders Meeting
Solar Future Cooperatief U.A.	21,775,075	36,29%	21,775,075	38,68%
Solar Power to the People Cooperatief U.A.	20,843,375	34,74%	20,843,375	37,03%
Photon Energy N.V.	3,708,258	6,18%	0	0,00%
Free float	13,673,292	22,79%	13,673,292	24,29%
Total	60,000,000	100,00%	56,234,335	100,00%

As of 31 December 2021 the shareholder structure was as follows:

Shareholder	No. of shares	% of capital	No. of votes at Shareholders Meeting	% of votes at Shareholders Meeting
Solar Future Cooperatief U.A.	21,775,075	36,29%	21,775,075	38,71%
Solar Power to the People Cooperatief U.A.	20,843,375	34,74%	20,843,375	37,05%
Photon Energy N.V.	3,747,635	6,25%	0	0,00%
Free float	13,633,915	22,72%	13,633,915	24,24%
Total	60,000,000	100.00%	56,252,365	100.00%

Mr. Michael Gartner and Mr. Georg Hotar are the only members of the Company's Board of Directors.

Mr. Michael Gartner indirectly owns 38.68 % (31 December 2021: 38.71 %) of the votes, via Solar Future Cooperative U.A. and directly 0.04% (31 December 2021: 0.04 % ) of votes at the Shareholders Meeting. Mr. Georg Hotar indirectly owns 37.03 % (31 December 2021: 37.05 %) of votes, via Solar Power to the People Coöperatief U.A. and directly 0.14% (31 December 2021: 0.18%) of votes at the Shareholders Meeting.

The Free float includes shares allocated to the employee share purchase programme. The disposition rights to these shares are limited and employees can dispose of these shares only under specific conditions.

The other reserves relate to the legal reserve; the revaluation of property, plant and equipment – photovoltaic power plants the hedging reserve and the currency translation reserve

Movement in Other reserves can be analysed as follows:

In thousands of EUR	30 June 2022	31 December 2021
Statutory reserve fund	13	13
Revaluation reserve	39,252	40,251
Currency translation reserve	1,490	2,021
Hedging reserve	3,933	2,039
Other capital funds	38	38
Total reserves	44,728	44,362

Revaluation reserve

In thousands of EUR	Revaluation reserve – PPE	Revaluation reserve – Other financial investments	Revaluation reserve total
Balance as at 1 January 2021	40,680	0	40,680
Increase of revaluation reserve (Note 9)	1,181	2,657	3,838
Increase of revaluation reserve - DT recognised	-548	0	-548
Share on increase on revaluation of properties - JV	105	0	105
Move from revaluation reserve to retained earnings	-3,822	0	-3,822
Other movements	-2	0	-2
Balance as at 31 December 2021	37,594	2,657	40,251
Increase of revaluation reserve (Note 9)	475	0	475
Increase of revaluation reserve - DT recognised	-42	0	-42
Share on increase on revaluation of properties - JV	0	0	0
Move from revaluation reserve to retained earnings	-1,431	0	-1,431
Other movements	-1	0	-1
Balance as at 30 June 2022	36,595	2,657	39,252

The revaluation reserve arises on the revaluation of photovoltaic power plants (PVP).

In H1 2022, the Group performed revaluations of the newly connected power plant in Hungary resulting in an increase of the value of property, plant, and equipment by the total amount of EUR 475 thousand, net amount recognised in revaluation reserve resulting from this amounted to EUR 433 thousand, see also note 9.

The revaluation reserve is being released to the retained earnings during the duration of the expected useful life (as of 1 January 2022 (see also Note 5) and Australia 30 years). The amount equal to the amount of depreciation coming from revaluation recycled to retained earnings in H1 2022 equals to EUR

1,431 thousand (1H 2021: EUR 3,822 thousand).

prolonged to 25 years for Slovakia, Czech Republic and Hungary

The revaluation reserve as such cannot be distributed only the amounts released to retained earnings can be distributed to the shareholder.

Foreign currency translation reserve

In thousands of EUR	6 months to 30 June 2022	6 months to 30 June 2021
Balance at beginning of period	2,021	-2,579
Foreign currency differences arising from the translation of financial statements and foreign exchange gains or losses arising from net investments	-531	3,814
Balance at end of period	1,490	1,234

The foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of operations using different currency from Euro. It relates to Czech Republic, Hungary, Poland, Romania, Switzerland and Australia.

In accordance with accounting policies are foreign exchange gains or losses arising from net investments in foreign operations also recognised in other comprehensive income.

This reserve cannot be distributed.

Derivatives hedging reserve

In thousands of EUR	6 months to 30 June 2022	6 months to 30 June 2021
Balance at beginning of period	2,039	-325
Change in fair value of hedging derivatives – fully consolidated entities (net of deferred tax)	1,885	972
Share on change in fair value of hedging derivatives of JV	9	23
Balance at end of period	3,933	670

Derivatives hedging reserve cannot be distributed.

14. Earnings Per Share

In EUR	H1 2022	H1 2021
Basic earnings per share	0.010	-0.076
Diluted earnings per share	0.010	-0.066
Total comprehensive income per share
Basic TCI per share	0.042	0.045
Diluted TCI per share	0.040	0.040

Basic and diluted earnings per share

The calculation of basic earnings per share for H1 of 2022 was based on the profit attributable to ordinary shareholders of EUR - 575 thousand and weighted average number of ordinary shares outstanding of 56,277 thousand (H1 2021: 52,480 thousand).

Share on profit of equity-accounted investees for H1 2022 amounted to EUR 36 thousand (H1 2021: EUR 74 thousand).

Basic and diluted total comprehensive income per share

The calculation of total comprehensive earnings per share and diluted total comprehensive earnings per share H1 of 2022 and H1 2021 was based on the total comprehensive income of EUR 2,371 thousand (H1 2021: EUR 2,371 thousand) attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding of 56,277 thousand ((H1 2021: 52,480 thousand).

Weighted average number of ordinary shares

There were no new shares issued in H1 2022 nor 2021. The number of shares at the year-end 2021 was 60,000,000.

15. Loans and Borrowings

This note provides information about the contractual terms of the Group's interest-bearing loans and borrowings, which are measured at amortised cost.

In thousands of EUR	30 June 2022	31 December 2021
Non-current loans and borrowings
Issued bonds	67,204	57,223
Long-term secured bank loans	34,988	41,106
Long term lease liability	1,960	1,676
Long-term portion of other loans	290	373
Total non-current loans and borrowings	104,441	100,378
Current loans and borrowings
Issued bonds	23,026	24,107
Current portion of long-term secured bank loans, including accrued interest	4,769	4,354
Short-term lease liability	580	597
Total current loans and borrowings	28,374	29,058
Total loans and borrowings	132,816	129,436

Reconciliation of liabilities arising from financing activities

The table below sets out an analysis of liabilities from financing activities and the movements in the Group's liabilities from financing activities for each of the periods presented. The items of these liabilities are those that are reported as financing in the statement of cash flows:

In thousands of EUR	Borrowings	Issued bonds	Lease liabilities	Other liabilities from financing activities	Total
Liabilities from financing activities at 1 January 2022	45,460	81,330	2,273	373	129,436
Cash flows
Loan drawdowns/New issues of bonds	-	10,000	-	-	10,000
Repayments of principal	-3,609	-1,310	-310	-83	-5,312
Interest payments	-1,131	-2,843	-41	-13	-4,028
Non-cash changes
New leasing contracts	-	-	512	-	512
Interest expense	1,131	3,107	41	13	4,292
Foreign exchange adjustments	-2,095	-54	64	-	-2,085
Liabilities from financing activities at 30 June 2022	39,756	90,230	2,539	290	132,816

Repayments of loan principal of EUR 3,609 thousand in first half of 2022 (1H 2021: EUR 4,887 thousand) include regular repayments of loans provided in EUR, HUF and AUD of EUR 1,419 thousand and extraordinary repayment of loan of CIB loan for Ladany Solar Delta of EUR 2,190 thousand (1H 2021: regular repayment of EUR 3,990 thousand and extraordinary repayment of Infradebt loan of EUR 897 thousand (AUD 1,250 thousand).

In thousands of EUR	Borrowings	Issued bonds	Lease liabilities	Other liabilities from financing activities	Total
Liabilities from financing activities at 1 January 2021	50,151	46,739	2,405	401	99,696
Cash flows
Loan drawdowns/New issues of bonds	15,416	761	-	167	16,344
Repayments of principal	-4,887	-	-194	-	-5,081
Transfer to restricted cash account	-320	-	-	-	-320
Interest payments	-1,264	-1,792	-34	-25	-3 115
Non-cash changes
Interest expense	1,062	1,994	34	25	3 115
Foreign exchange adjustments	1,015	57	19	-	1,091
Liabilities from financing activities at 30 June 2021	61,173	47,759	2,230	568	111,730

Terms and debt repayment schedule

Terms and conditions of outstanding loans were as follows:

In thousands of EUR Currency		Nominal interest rate	Year of maturity	30 June 2022		31 December 2021
				Credit limit	Utilised	Credit limit	Utilised
Secured bank loan (Unicredit)	EUR	3M EURIBOR + 1.55%	30.6.26- 30.9.27	4,232	4,232	4,759	4,759
Secured bank loan (K&H)	HUF	3M BUBOR + 2.2–2.5%	28.6.2034 31.3.2035	20,694	19,767	22,643	21,629
Secured bank loan (CIB)	HUF	3M BUBOR + 2.5%	31.12.2035	10,974	10,974	14,415	14,415
Secured bank loan (Infradebt)	AUD	3M BBSW (min 0,5%) + 2,35-3,25%	31.12.2025	4,508	4,508	4,618	4,618
Accrued fees and in terest					276	0	40
Total interest bearing loans		40,408	39,756	46,434	45,460

Issued bonds

	Amortised amount		Fair value
In thousands of EUR	30 June 2022	2021	30 June 2022	2021
Current liabilities
EUR bond 2017/22	22,721	23,735	22,721	24,350
Non-current liabilities
Green bond 2021/27	64,491	54,602	65,088	57,201
CZK bond 2016/23	3,018	2,993	3,051	2,832
Total	90,230	81,330	90,861	84,383

During 1H 2022 the Company issued additional EUR green bond in nominal value of 10,000,000 under the existing program. Total amount of placement costs paid for the issuance of additional green bonds in 1H 2022 amounted to EUR 108 thousand.

The fair values are based on cash flows discounted using a rate based on the borrowing rate of 6,78% (applicable credit spread) + risk free rate for relevant currency (2021: 6,78%) and are within level 2 of the fair value hierarchy.

The table below shows non-derivative financial liabilities at 30 June 2022 and 31 December 2021 by their remaining contractual maturity:

30 June 2022

In thousands of EUR	Carrying amount	1 – 12 months	1 – 2 years	2 – 5 years	More than 5 years	Contractual cash flows
Non-derivative Financial liabilities
Secured bank loans	39,756	5,539	5,446	17,135	27,624	55,744
Bonds	90,230	27,686	7,352	12,675	67,113	114,826
Lease liability	2,539	580	482	1,033	858	2,953
Other LT loans	290	193	97	0	0	290
Trade and other payables	2,849	2,849	0	0	0	2,849
Total future payments, including future principal and interest pay ments	135,665	36,848	13,377	30,843	95,594	176,662

31 December 2021

In thousands of EUR	Carrying amount	1 – 12 months	1 – 2 years	2 – 5 years	More than 5 years	Contractual cash flows
Non-derivative financial liabilities
Secured bank loans	45,460	6,282	6,163	16,532	30,452	59,429
Bonds	81,330	29,315	6,780	10,725	58,575	105,395
Lease liability	2,273	593	345	712	913	2,563
Other LT loans	373	249	124	0	0	373
Trade and other payables	3,298	3,298	0	0	0	3,298
Total future payments, including future principal and interest pay ments	132,734	39,737	13,412	27,970	89,940	171,058

16. Derivative Financial Instruments

	30 June 2022		31 December 2021
In thousands of EUR	Contracts with positive fair value	Contracts with negative fair value	Contracts with positive fair value	Contracts with negative fair value
Interest rate swaps, fair values, at the end of reporting period
Hedging derivatives	4,396	-26	2,351	-49
Value of interest rate swaps	4,396	-26	2,351	-49
Net value of interest rate swaps	4,370		2,302	0
Other Derivative Financial Instruments
Shares options (Note 10)	1,611	0	1,242	0
Net Value of Other Derivative Financial Instruments	1,611	0	1,242	0

Derivatives with positive fair values are included in Other receivables, derivatives with negative fair values are included in Other liabilities.

17. Fair Value Disclosures

Fair value measurements are analysed by level in the fair value hierarchy as follows:

• ► Level 1 are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities,
• ► Level 2 measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and
• ► Level 3 measurements are valuations not based on observable market data (that is, unobservable inputs).

Management applies judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement. The significance of a valuation input is assessed against the fair value measurement in its entirety.

The fair values of financial assets and liabilities together with the carrying amounts shown in the statement of financial position are as follows. For the other financial assets/financial liabilities, the fair value approximates the carrying amount.

17.1 Recurring Fair Value Measurements

Recurring fair value measurements are those that the accounting standards require or permit in the statement of financial position at the end of each reporting period. The level in the fair value hierarchy into which the recurring fair value measurements are categorised are as follows:

	30 June 2022				2021
In thousands of EUR	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Financial assets
Precious metals	3,755	0	0	3,755	3,227	0	0	3,227
Derivatives	4,370	0	0	4,370	2,302	0	0	2,302
Other financial investments	0	0	6,966	6,966	0	0	9,736	9,736
Non financial assets				0
Property, plant and equipment	0	0	125,104	125,104	0	0	123,434	123,434
Total assets recurring FV measurement	8,125	0	132,070	140,195	5,529	0	133,170	138,699
Financial liabilities
Derivatives	0	0	0	0	0	0	0	0
Total liabilities recurring FV measurement	0	0	0	0	0	0	0	0

The valuation technique, inputs used in the fair value measurement for level 3 measurements and related sensitivity to reasonably possible changes in those inputs are as follows:

30 June 2022:

In thousands of EUR	Fair value	Valuation technique	Inputs used	Range of inputs	Reasonable change	Sensitivity of FV measurement
Non financial assets
Property, plant and equipment	125,104	DCF	Discount rate Production volume Revenue model	See below	See below	See below
Other financial investments	6,966	MtM	Probability estimates Expected share price	See below	See below	See below
Total assets recurring FV measurement	132,070

31 December 2021:

In thousands of EUR	Fair value	Valuation technique	Inputs used	Range of inputs	Reasonable change	Sensitivity of FV measurement
Non financial assets
Property, plant and equipment	123,434	DCF	Discount rate Production volume Revenue model	See below	See below	See below
Other financial investments	9,736	MtM	Probability estimates Expected share price	See below	See below	See below
Total assets recurring FV measurement	133,170

The DCF Equity valuation method is based on a Discounted Cash Flow method. It includes the future cash flows available to the shareholders/providers of equity of photovoltaic projects (i.e. after all debt repayments and interests) that are later discounted by relevant discount rates (Levered Cost of Equity). The risk profile is represented by a discount rate (Levered Cost of Equity). Due to existence of senior project finance the cost of equity calculated by CAPM formula is adjusted by Miller-Modigliani formula to achieve the most precise cost of equity levered for each project respecting it unique capital structure.

In the valuation model, a quarterly discount is applied. This is based on the fact that debt repayments are happening on quarterly basis. This is effecting the overall change in financing structure and indirectly affecting cost of equity levered.

The used Levered Cost of Equity rates to discount estimated cash flows, vary between countries from 7.8% to 16.5% for H1 2022 (2021: 5% to 13%).

Other financial investments are stated at its fair value based on valuation models prepared by management. Other financial investments include primarily ordinary and preference shares and related share options held. The principal assumptions, in addition to the market price of the shares, are probability of the realisation of the share options granted and discount rate reflecting required return on investment on this type of the Group's investments.

Sensitivity analysis of DCF for power plants – change in Levered Cost of Equity

The below analysis shows impact of change in the used Levered Cost of Equity rates by +/-3% on the enterprise/entity value in absolute and relative figures as of 30 June 2022:

In thousands of EUR	Discount rate +3%	Discount rate +3% in %	Discount rate -3%	Discount rate -3% in %
HU power plants	-2,697	-5.3%	3,915	7.8%
CZ power plants	-5,439	-11.7%	6,664	14.3%
SK power plants	-1,224	-8.4%	1,549	10.6%
AU power plants	-2,168	-15.7%	3,351	24.3%

The below analysis shows impact of change in the used Levered Cost of Equity rates by +/-3% on the enterprise/entity value in absolute and relative figures as of 31 December 2021:

In thousands of EUR	Discount rate +3%	Discount rate +3% in %	Discount rate -3%	Discount rate -3% in %
HU power plants	-3,221	-6.4%	5,240	10.5%
CZ power plants	-5,789	-12.1%	7,109	14.9%
SK power plants	-1,591	-10.7%	2,022	13.6%
AU power plants	-3,109	-19.9%	5,226	33.5%

Sensitivity analysis of DCF for power plants – change in production output

The below analysis shows impact of change in production output by +/-2% on the enterprise/entity value in absolute and relative figures as of 30 June 2022:

In thousands of EUR	Production +2%	Production +2% in %	Production -2%	Production -2% in %
HU power plants	956	1.9%	-951	-1.9%
CZ power plants	902	1.9%	-902	-1.9%
SK power plants	324	2.2%	-324	-2.2%
AU power plants	268	1.9%	-268	-1.9%

The below analysis shows impact of change in production output by +/-2% on the enterprise/entity value in absolute and relative figures as of 31 December 2021:

In thousands of EUR	Production +2%	Production +2% in %	Production -2%	Production -2% in %
HU power plants	852	1.7%	-863	-1.7%
CZ power plants	910	1.9%	-910	-1.9%
SK power plants	361	2.4%	-361	-2.4%
AU power plants	316	2.0%	-316	-2.0%

Sensitivity analysis of DCF for power plants – change in electricity and LGC prices

The below analysis shows impact of change in electricity prices by +/-10% on the enterprise/entity value for selected power plants in absolute and relative figures as of 30 June 2022:

In thousands of EUR	Electricity prices +10%	Electricity prices +10% in %	Electricity prices -10%	Electricity prices -10% in %
HU power plants - FIT	35	0.3%	-35	-0.3%
HU power plants - Merchant	3,022	6.6%	-3,020	-6.6%
AU power plants - prices	1,086	7.9%	-1,086	-7.9%
AU power plants - LGCs	253	1.8%	-253	-1.8%

n/a* – as the PVP opted out from fixed feed in tarif schemes in Hungary, no sensitivity to FIT is applicable

The below analysis shows impact of change in electricity prices by +/-10% on the enterprise/entity value for selected power plants in absolute and relative figures as of 31 December 2021:

In thousands of EUR	Electricity prices +10%	Electricity prices +10% in %	Electricity prices -10%	Electricity prices -10% in %
HU power plants - FIT	320	0.7%	-318	-0.7%
HU power plants - Merchant	175	11.4%	-175	-11.4%
AU power plants - prices	1,332	8.5%	-1,332	-8.5%
AU power plants - LGCs	253	1.6%	-253	-1.6%

Sensitivity analysis of MtM of other financial investments – changes in significant estimates

The below analysis shows impact of change in significant estimates on the MtM value in absolute and relative figures as of 30 June 2022:

In thousands of EUR	Market price of the share +10%	Market price of the share +10% in %	Market price of the share -10%	Market price of the share -10% in %
Investment in Lerta SA	-*	-*	-*	-*
Investment in Raygen Resources Pty Ltd	837	12%	- 837	-12%

* No sensitivity analysis is presented for Lerta SA as at 30 June 2022, as the investment in Lerta SA has been reclassified into investments into associates

In thousands of EUR	Discount rate +3%	Discount rate +3% in %	Discount rate -3%	Discount rate -3% in %
Investment in Raygen Resources Pty Ltd	- 82	-1.2%	90	1.3%
In thousands of EUR	Probability +10%	Probability +10% in %	Probability -10%	Probability -10% in %
Investment in Raygen Resources Pty ltd	241	3.5%	-241	-3.5%

The below analysis shows impact of change in significant estimates on the MtM value in absolute and relative figures as of 31 December 2021:

In thousands of EUR	Market price of the share +10%	Market price of the share +10% in %	Market price of the share -10%	Market price of the share -10% in %
Investment in Lerta SA	314	10.0%	- 314	-10.0%
Investment in Raygen Resources Pty Ltd	547	8.3%	- 920	-13.9%
In thousands of EUR	Discount rate +3%	Discount rate +3% in %	Discount rate -3%	Discount rate -3% in %
Investment in Raygen Resources Pty Ltd	- 125	-1.9%	143	2.2%
In thousands of EUR	Probability +10%	Probability +10% in %	Probability -10%	Probability -10% in %
Investment in Raygen Resources Pty ltd	186	2.8%	-186	-2.8%

17.2 Assets and Liabilities Not Measured at Fair Value but for Which Fair Value is Disclosed

Fair values analysed by level in the fair value hierarchy and the carrying value of assets and liabilities not measured at fair value are as follows:

	30 June 2021			2020
In thousands of EUR	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Financial assets
Financial assets at AC
Trade and other receivables	0	11,774	0	11,774	0	5,332	0	5,332
Loans provided	0	2,299	0	2,299	0	1,811	0	1,811
Other	0	26,734	0	26,734	0	37,266	0	37,266
Total assets	0	40,807	0	40,807	0	44,409	0	44,409
Financial liabilities
Borrowings
Bank loan	0	39,756	0	39,756	0	45,460	0	45,460
Issued bonds	0	90,861	0	90,861	0	84,383	0	84,383
Lease liabilities	0	2,539	0	2,539	0	2,273	0	2,273
Other non-current liabilities	0	290	0	290	0	373	0	373
Other financial liabilities
Trade and other payables	0	2,849	0	2,849	0	3,298	0	3,298
Total liabilities	0	136,296	0	136,296	0	135,787	0	135,787

All financial assets and financial liabilities have been defined to Level 2.

The fair values in level 2 and level 3 of the fair value hierarchy were estimated using the discounted cash flows valuation technique.

Financial Assets Carried at Amortised Cost

The fair value of floating rate instruments is normally their carrying amount. The estimated fair value of fixed interest rate instruments is based on estimated future cash flows expected to be received discounted at current interest rates for new instruments with similar credit risks and remaining maturities. Discount rates used depend on the credit risk of the counterparty.

Liabilities Carried at Amortised Cost

The fair value of issued bonds is based on quoted market prices. Fair values of other liabilities were determined using valuation techniques.

18. Presentation of Financial Instruments by Measurement Category

For the purposes of measurement, IFRS 9 Financial Instruments classifies financial assets into the following categories: (a) financial assets at FVTPL; (b) debt instruments at FVOCI, (c) equity instruments at FVOCI and (c) financial assets at AC. Financial assets at FVTPL have two sub-categories: (i) assets mandatorily measured at FVTPL, and (ii) assets designated as such upon initial recognition. In addition, finance lease receivables form a separate category.

The following table provides a reconciliation of financial assets with these measurements:

30 June 2022:

In thousands of EUR	FVOCI	FVPL	AC	Total
Assets
Cash and cash equivalents	0	0	20,499	20,499
Liquid assets with restriction on disposition	0	0	5,256	5,256
Precious metals	0	3,755	0	3,755
Other financial assets	5,354	1,612	0	6,966
Contract asset	0	0	978	978
Trade and other receivables	4,370	0	11,774	16,144
Loans provided	0	0	2,299	2,299
Total financial assets	9,724	5,367	40,806	55,897

As of 30 June 2022, all of the Group's financial were carried at AC.

31 December 2021:

In thousands of EUR	FVOCI	FVPL	AC	Total
Assets
Cash and cash equivalents	0	0	32,506	32,506
Liquid assets with restriction on disposition	0	0	3,629	3,629
Precious metals	0	3,227	0	3,227
Other financial assets	8,494	1,242	0	9,736
Contract asset	0	0	1,131	1,131
Trade and other receivables	2,302	0	5,332	7,634
Loans provided	0	0	1,811	1,811
Total financial assets	10,796	4,469	44,409	59,674

As of 31 December 2021, all of the Group's financial were carried at AC.

19. Related Parties

Parties are generally considered to be related if the parties are under common control or if one party has the ability to control the other party or can exercise significant influence or joint control over the other party in making financial and operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely the legal form.

Balances and transactions between the Company and its subsidiaries which are related parties of the Company have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.

The Company is jointly controlled by Mr. Michael Gartner (via Solar Future Coöperatief U.A.) and Mr. Georg Hotar (via Solar Power to the People Coöperatief U.A.), who are the Company's directors.

At 30 June 2022, the outstanding balances with related parties were as follows:

In thousands of EUR	Parent companies	Joint ventures	Key management personnel
Gross amount of trade receivables	-	-	-
Loans issued	1,634		665
Investments in JV		1,768

Loans issued to related parties include loans to Solar Age Investments B.V. and Solar Power to the People U.A. which are short term for a period of up to 12 month and bear interest rate of 3%.

At 31 December 2021, the outstanding balances with related parties were as follows:

In thousands of EUR	Parent companies	Joint ventures	Key management personnel
Gross amount of trade receivables	-	72	-
Loans issued	1,170	-	641
Investments in JV	-	1,626	-

Loans issued to related parties include loans to Solar Age Investments B.V. and Solar Power to the People U.A. which are short term for a period of up to 12 month and bear interest rate of 3%.

The income and expense items with related parties for the period of 6 months ended 2022 were as follows:

In thousands of EUR	Parent	Joint	Key management
	companies	ventures	personnel
– Interest income	173		6

The income and expense items with related parties for the year ended 31 December 2021 were as follows:

In thousands of EUR	Parent companies	Joint ventures	Key management personnel
Revenue from services rendered	-	72	-
– Interest income	73	-	17

There are no other rights and obligations connected to related parties at 30 June 2022 nor 31 December 2021.

Key Management Compensation

Key management includes Members of the board of directors and Senior management. Members of the board of directors did not receive any compensation during first half of 2022 nor first half of 2021 for their duties serving on the board of directors for the Group of entities. Furthermore, no emoluments of managing directors, including pension obligations were charged to the Company. No service contracts with the Company nor any of its Subsidiaries have been provided to a member of the Board of Directors for benefits upon termination of employment. Mr Georg Hotar receives a regular salary as an employee in his function as managing director of Global Investment Protection AG in Switzerland and Mr Gartner receives a regular salary as an employee in his function as managing director of Photon Energy Australia Pty Ltd. in Australia. These compensations are in no direct relation to their Board of Director functions. The overall cost of compensations for the key management from their employment relations with the Company or its subsidiaries in the first half of 2022 amounted to EUR 607 thousand (H1 2021: EUR 347 thousand, 2021: EUR 728 thousand). The agreements between the key management with the Company or its Subsidiaries do not foresee any severance payments, company pension plans or other deferred compensation. Termination period of the agreements is up to six months. There are no commitments and contingent obligations towards key management personnel at 30 June 2022 nor 31 December 2021.

20. Subsequent Events

There were no subsequent events that would have impact on the interim consolidated financial statements.