Ignitis Grupe

Investor Presentation • May 15, 2024

Strategic Plan 202 4 –202 7

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Ignitis Group │ May 2024

Legal notice

This document has been prepared by AB "Ignitis grupė" (Ignitis Group) solely for informational purposes and must not be relied upon, disclosed or published, or used in part for any other purpose.

The document should not be treated as investment advice or provide basis for valuation of Ignitis Group securities and should not be considered as a recommendation to buy, hold, or dispose of any of its securities, or any of the businesses or assets referenced in the document.

The information in this document may comprise information which is neither audited nor reviewed by independent third parties and should be considered as preliminary and potentially subject to change. Therefore, no express or implied warranty is made as to the accuracy, correctness or completeness of the information and statements expressed herein, for any purpose whatsoever.

This document may also contain certain forward-looking statements, including but not limited to, the statements and expectations regarding anticipated financial and operational performance. These statements are based on the management's current views, expectations, assumptions, and information as of the date of this document announcement as well as the information that was accessible to management at that time. Statements herein, other than statements of historical fact, regarding Ignitis Group's future results of operations, financials, business strategy, plans and future objectives are forward-looking statements. Words such as "forecast", "expect", "intend", "plan", "will", "may", "should", "continue", "predict" or variations of these words, as well as other statements regarding matters that are not a historical fact or regarding future events or prospects, constitute forwardlooking statements.

Ignitis Group bases forward-looking statements on its current views, which involve a number of risks and uncertainties, which may be beyond Ignitis Group's control or difficult to predict and could cause the actual results to differ materially from those predicted and from the past performance of Ignitis Group. The estimates and projections reflected in the forward-looking statements may prove materially incorrect and the actual results may materially differ due to a variety of factors, including, but not limited to, legislation and regulatory factors, geopolitical tensions, economic environment and industry development, commodities and markets factors, environmental factors, finance-related risks as well as expansion and operation of generation assets. Therefore, you should not rely on these forward-looking statements. For further risk-related information, please see section '4.2 Risk management update' of our latest interim report and '4.7 Risks management' section in our Integrated Annual Report 2023, all available at https://ignitisgrupe.lt/en/reports-and-presentations.

In the event of any discrepancy between the Lithuanian and the English versions of the document, the English version shall prevail.

No responsibility or liability will be accepted by Ignitis Group, its affiliates, officers, employees, or agents for any loss or damage resulting from the use of forward-looking statements in this document. Unless required by the applicable law, Ignitis Group is under no duty and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Content

1. Business model and strategy	4
2. Context	7
3. Business segments	13
3.1. Green Capacities	14
3.2. Networks	26
3.3. Customers & Solutions	29
3.4. Reserve Capacities	31
4. Financials	33
5. People	40
6. Sustainability	43
7. Highlights	46
Annexes	48

1. Business model and strategy

Renewables-focused integrated utility

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Ignitis Group

Renewables-focused integrated utility

• Our purpose is to create a 100% green and secure energy ecosystem for current and future generations
• 4–5 GW of installed Green Capacities by 2030
• Net zero emissions by 2040–2050
• Focus on green generation and green flexibility technologies: onshore and offshore wind, batteries, pumped-storage hydro and power-to-X
• Integrated business model: benefiting from the largest customer portfolio, energy storage facility, and network in the Baltics
• Active in the Baltic states, Poland and Finland

Green Capacities Networks Reserve Capacities Customers & Solutions

Integrated business model

We are utilising integrated business model to maximise potential

1 Based on installed capacity. 2 Based on the network size and the number of customers. 3 Based on the number of customers. Note: data, except Adjusted EBITDA, is as of 31 March, 2024.

2. Context

Energy transition in the region

Climate change and the EU response

Global warming projections1

Emissions and expected warming based on pledges and current policies

(Global GHG emissions GtCO2-eq / year)

Efforts to limit global temperature increase to 1.5°C to reach net zero by 2050 (Paris Agreement, 2015).

Source: Climate Action Tracker. 2100 Warming projections Source: Grand Challenges | Breakthrough Energy Includes land use and forestry. Source: European Commission. Factsheet - Europe's 2040 climate pathway

Global contributors

Top 5 sources of global gross greenhouse gas emissions2

Global climate change scenarios EU action and climate related targets

The European Union proposes ambitious net greenhouse emissions reduction targets4

The EU aims to be climate-neutral by 2050 in line with the Paris Agreement.

In 2023, the EU adopted proposals to make the climate, energy, transport and taxation policies fit for reducing net GHG emissions by at least 55% by 2030, compared to 1990 levels.

In February 2024, the European Commission recommended reducing the EU's net greenhouse gas emissions by 90% by 2040, relative to 1990.

Energy transition trends

Growing demand for electricity

European electricity demand1, TWh per annum

Phase-out of conventional plants

European fossil fuel based production1, TWh

Green generation capacity targets

European renewable capacity1,2, GW

Growing battery capacities

European battery capacity1, GW

Growing prices of EU Allowances (EUAs)

prices Carbon emission prices3, nominal, EUR/tonne

Growing power-to-X capacities

European Power-to-X capacity1, GW

Source: ICIS.

2 Wind energy capacity targets for the EU defined in the European Wind Power Action Plan: 510 GW by 2030 (whereof offshore renewable energy targets for the EU: at least 111 GW by 2030 and 317 GW by 2050). Source: Company analysis based on EUR-Lex - 52023DC0669 - EN - EUR-Lex (europa.eu), EUR-Lex - 52023DC0668 - EN - EUR-Lex (europa.eu), and EUR-Lex - 52022DC0221 - EN - EUR-Lex (europa.eu). 3 Source: ICIS, ECB.

Grids as a key element of the energy transition

Growing investment in power grids need Expanding transmission grids

Transmission grid length in the EU1 Cumulative investments in power grids based on the historical trend , million km and additional investments required in Europe1, trillion EUR

Historical investment trends Electricity network investments, incl. transmission and distribution, have risen in the period 2010–2018 from EUR 24 billion to EUR 32 billion p.a.

• Integration of large renewable sources and ability to transport power long distances from offshore
• Transport electrification/EV charging
• Industrial electrification
• Heating electrification
• Increasing connection requests
• Aging Europe's distribution grids

Distribution grid length in the EU1, million km

Growing transmission grid capacity to enable large renewable sources and offshore

Cross-border transmission capacity in the EU2, GW

Expanding distribution grids Increasing capabilities of future infrastructure enabled by growing electrification needs

¹ Source: European Round Table for Industry "Strengthening Europe's Energy Infrastructure" 2024 March. ² Source: European commission EU Action Plan for Grids 2023 November. ENTSO-E. ³ Source: European Heat Pump Market and Statistics Report 2023, RePowerEU plan, Green Deal Industrial plan, Ignitis analysis.

⁴ Source: Euroelectric, EY study "How do we solve the challenge of data interoperability in e-mobility?".

Green hydrogen has the potential to play a significant role in achieving Net Zero

The Baltics are uniquely positioned to contribute

Regional transformation of energy flows in Europe

• The Balticand Nordic countries are well positioned to become substantial suppliers of both electricity and hydrogen for Central Europe and in particular – Germany
• Energy surplus in the Baltic states and Nordic countries is projected in ~2030–2035
• The Baltics green generation potential is ~7x larger than local consumption.

Zone in structural oversupply (excess RES)

• Zone in structural undersupply (RES deficit)
• Non-modelled
• Energy flows

EU green hydrogen strategy and targets

By 2030:

the EU aims to reach 10 million tonnes of domestic renewable hydrogen production and 10 million tonnes of imported renewable hydrogen in line with the REPowerEU Plan.

Additional targets for green hydrogen use in the industry1:

– at least 42% of the hydrogen used for energy and non-energy purposes in the industry comes from renewable fuels of non-biological origin by 2030; – and 60% by 2035.

EU rules for renewable hydrogen2

Hydrogen is treated as green if one of the following pathways outlined below are met:

• Direct connection. The hydrogen plant is directly connected to a renewable asset. The renewable asset cannot come into operation earlier than 36 months before the hydrogen plant.
• Grid connection:
  • Hydrogen plant is in a bidding zone where renewable power accounts for >90%
  • Hydrogen plant is in a bidding zone where the emissions intensity is < 18gCO2e/MJ, and a renewable PPA is signed
  • A renewable PPA is signed for the supply of power
  • Power supply is taken from the grid during an imbalance period.

European Hydrogen Backbone

The European Hydrogen Backbone initiative3 aims to accelerate Europe's decarbonisation journey by defining the critical role of hydrogen infrastructure – based on existing and new pipelines – in enabling the development of a competitive, liquid, pan-European renewable and low-carbon hydrogen market.

Lithuanian energy independence strategy4

By 2030: Lithuania aims to have 1.3 GW of installed electrolysis capacity (produce 129 thousand tonnes of green hydrogen)

By 2050: to have 8.5 GW of installed electrolysis capacity (produce 732 thousand tonnes of green hydrogen)

¹ Source: European Renewable Energy Directive (RED III - part of the "Fit for 55" package) aims to increase the share of renewable energy in the EU's overall energy consumption to 42.5% by 2030 and introduces specific targets for Member States in the industry, transport, building.

² Source: RFNBO Production Methodology: Delegated regulations on a methodology for renewable fuels of non-biological origin.

11/59 ³ Source: The European Hydrogen Backbone (EHB) initiative, https://ehb.eu. A path to 2050 is a group of eleven leading European gas transport companies (DESFA, Enagás, Energinet, Fluxys, Gasunie, GRTgaz, Nordion, ONTRAS, Open Grid Europe, Snam, and Teréga) and three renewable gas industry associations (Consorzio Italiano Biogas, European Biogas Association and German Biogas Association). ⁴ Source: Lithuanian energy independence strategy draft: March 2024.

Significant opportunities for green energy expansion in the Baltics and Poland

Lithuania: Structural electricity deficit

Only ~40% of electricity consumption is covered by national generation in 2021–2023 on average1 . The country aims to become self-sufficient and electricity-exporting, therefore, a significant build-out of domestic generation assets is expected.

Estonia: Phase-out of oil shale

More than half or ~57% of Estonia's electricity production in 20223 was from oil shale (49% in 2021), and there is a growing need to further develop new renewable capacities to cover the phase-out of oil shale.

The Baltics: terminated electricity and gas imports from Russia & Belarus

Electricity imports from Russia and Belarus were terminated region-wide following Russia's war in Ukraine. These imports are expected to be replaced by domestic renewables.

Poland: Transition away from coal generation

Coal generation represented 61% of the generation mix in Poland in 20232 (70% in 2022). This is expected to gradually decline further and be replaced by renewable energy.

Green energy development forecast, installed capacity GW4, 5 (in the Baltics and Poland)

¹ Source: Litgrid. National electricity demand and generation: Litgrid. National electricity demand and generation. ² Source: Ember. Poland electricity generation by source: Europe | Electricity Transition | Ember (ember-climate.org).

³ Source: Statistics Estonia. Oil shale electricity production: Oil shale electricity production increased last year | Statistikaamet. 4 Installed capacities include: wind, solar, bio, hydro and battery assets.

⁵ Source: Company analysis based on ICIS, Litgrid, ENTSO-E.

3. Business segments

Green Capacities | Networks | Customers & Solutions | Reserve Capacities

Green Capacities

Strategic priorities:

Delivering 4 –5 GW of installed green generation and green flexibility capacity by 2030 with a focus on:

• Onshore and offshore wind
• Batteries, pumped-storage hydro and power -to - X

Focus markets :

The Baltic states and Poland

We are also exploring new opportunities in other EU markets undergoing energy transition

Green Capacities targets 2027: 2.4–2.6 GW1 2030: 4–5 GW1

We focus on technologies that can deliver a 100% green and secure energy ecosystem

Green generation technologies Green flexibility technologies

Focus technologies

Onshore wind

The conditions in the Baltics and Poland are favourable for onshore wind development as there are no natural barriers (such as mountains) that can block wind, and it has low population density.

Offshore wind

Offshore wind development is seen as the backbone of our Green Capacities expansion strategy.

Complementary technologies

Solar

Used in cases where it adds value (e.g. higher utilisation of existing grid connections, synergies from common infrastructure, securing grid connections).

Baseload generation profile with additional flexibility

Focus technologies

Batteries

Enables integration of renewables by facilitating demand management, improves grid reliability while limiting output curtailment.	short-term storage
Pumped-storage hydro Very large balancing capacities that enable future renewable energy growth in the region.	middle-term storage
Power-to-X technologies Potential solutions for attaining global climate goals and decarbonizing industry, transportation and power generation.	long-term storage
	additional flexibility

Offshore wind Green generation

– one project in Lithuania (COD ~2030)

– at least one more project in the Baltics (COD post 2030)

The status3 of our offshore wind development projects:

	Seabed secured	EIA	Grid secured	FiD
Lithuanian offshore WF 0.7 GW COD ~2030		In progress		-
Estonian offshore WF 1–1.5 GW (two sites) COD ~2035		-	-	-

Offshore wind potential in the Baltics

Onshore wind Green generation

Our target onshore wind capacity >700 MW installed by 2027

The conditions in the Baltics and Poland are favourable for onshore wind development as there are no natural barriers (such as mountains) that can block wind, and it has low population density

Our progress:

Onshore wind development forecast in the Baltics and Poland Total onshore wind installed capacity ~22 GW in 20301

Baltics

Complementary technologies

Green generation and green flexibility technologies

generation profile. Hybrid technology generation ensures higher utilisation of available grid capacities and a more stable generation profile.

Our progress:

Total: 291.1 MW Solar capacity under construction2

Baltics: 261.1 MW

• Lithuanian solar Portfolio (22.1 MW), COD 2024

• Latvian solar Portfolio (239 MW), COD 2025

Poland: 30 MW

• Polish solar Portfolio (30 MW), COD 2024

Solar development forecast in the Baltics and Poland Total solar installed capacity ~27.8 GW in 20301

Baltics

• additional flexibility

Green baseload (and flexible – contributing to balance of the energy system) technologies are a part of our portfolio. No further plans to expand our hydro run-of-river, biomass and waste-to-energy technologies portfolio.

Installed / under construction Hydro, biomass and waste-to-energy ³ Total: 227 MW / 349 MWth

• Hydro (run-of-river): 101 MW - Biomass: 733 MW (+2093 MW heat capacity installed) - Waste-to-energy: 444 MW (+1404 MW heat capacity installed)

¹ Source: ICIS, ENTSO-E. ² As of 31 March,2024.

³ Vilnius CHP biomass unit has reached full COD (73 MWe, 169 MWth), after the COD was achieved for the remaining capacity (23 MWe, 20 MWth) after Mar 2024, therefore, it is included within the total of under construction. Elektrėnai Biomass Boiler: 40 MWTh. ⁴ Kaunas CHP: 24 MWe / 70 MWth. Vilnius CHP waste-to-energy unit : 20 MWe / 70 MWth.

Pumped-storage hydro Green flexibility

Kruonis PSHP is one of the largest energy storage facilities in Europe:

Current capacity 900 MW

Four operating units (4x225 MW) can perform up to 300 cycles1 per year.

The upper reservoir can hold around 48.7 million cubic meters of working water.

Expansion in 2026 +110 MW

New 5th unit (1x110MW) will provide extra flexibility.

It will also allow us to provide more balancing and ancillary services.

Capabilities post-2026 1,010 MW

All 5 turbines will be able to run at full load for ~10 hours.

10 hours x 1 GW = 10 GWh of storage capacity.

Flexibility in generation mode: 0 – 1,010 MW (pre-expansion: 160 – 900 MW)

Flexibility in pump mode: 59 – 1,010 MW (pre-expansion: 220 – 900 MW)

5th unit cycle efficiency of 76% (pre-expansion: ~71%)

5th unit max capacity reachable in 80 seconds (pre-expansion: 180 seconds)

Batteries

Our target

Batteries

Commercialscale batteries by 2027

Batteries enable integration of renewables by facilitating demand management, helping improve grid reliability, limiting output curtailment.

Balancing and grid services

Batteries have roles in a variety of markets – balancing, ancillary, frequency containment reserves, day-ahead and intra-day arbitrage. Rapid development of renewables in the region is increasing demand for balancing and grid services.

Power-to-X

Green flexibility Green flexibility

Our target

Green hydrogen production and e-fuel conversion pilot project

Green hydrogen & e-fuels

Ignitis group's strategy is to pursue the development of a pilot project, leading to the full commercialization of Powerto-X technologies in the longer term.

2nd and later stages – utility scale

Successful pilot project will pave the way to developing strategic partnerships and gaining resources for utility-scale green hydrogen and e-fuel production capabilities.

Operating model

We are delivering value across all execution stages

Power offtake capabilities

We utiliseour supply portfolio to structure offtake agreements to enable Green Capacities build-out that creates a competitive advantage

Electricity generated1 vs supplied by Ignitis Group over 2023 – 2030+, TWh

Strategic partnerships

We partner with strategic investors to adopt new technologies or enter new markets

Partnership with Ocean Winds: adopting offshore wind technologies

Rationale

In 2020 we partnered with Ocean Winds (OW) to participate in the first 700 MW offshore wind auction and develop the first offshore wind project in Lithuania. Ignitis Group also contribute to the development of an offshore wind farm in the UK, taking a 5% stake in the Moray West wind farm, in order to gain experience and valuable know-how in offshore wind project development in other countries, which will be used to develop offshore wind energy in Lithuania.

Lithuanian offshore

WF project:

Moray West offshore WF project:

Structure

Ignitis group (51%) and Ocean Winds (49%)

Capacity

700 MW (CoD ~ 2030)

Status

The auction was won in 2023

Ignitis Group is a minority Structure

shareholder with a stake of 5%

Capacity

882 MW (CoD 2025)

Status

Under construction (the projects has reached the financial close in April 2023)

Partnership with Copenhagen Infrastructure Partners: participation in Estonian and Latvian offshore wind tenders

Rationale

In 2023 we partnered with Copenhagen Infrastructure Partners P/S (through its New Markets Fund I) to collaborate exclusively on offshore wind opportunities in Estonia and Latvia and intend to jointly bid in the upcoming offshore wind tenders in these countries. The partnership leverages Ignitis Group's leading market position in the Baltic region and CIP's global offshore wind expertise.

Structure

Ignitis Group (50%) and Copenhagen Infrastructure Partners (50%)

Capacity

1 – 1.5 GW (Estonian offshore WF – two seabed sites) expected to become operational around 2035

Status

The first auction was won in 2023 (Dec - Liivi 2 site) and the second - in 2024 (Jan - Liivi 1 seabed area)

Rationale

In 2015 we partnered with Fortum (a leading WtE player) to build Kaunas CHP.

Structure

Ignitis Group (51%) and Fortum* (49%)

*in 2021, Fortum has signed an agreement to sell its district heating business in the Baltics to Partners Group, a leading global private markets firm, acting on behalf of its clients.

Capacity

24 MW electricity and 70 MW heat capacity. Investments ~EUR 152m

Status

Kaunas CHP has been successfully completed and operational since 2020

Networks

Strategic priorities :

• 1. Resilient and efficient electricity distribution
• 1. Electricity network expansion and facilitation of the energy market
• 1. End -to -end customer experience

Focus market:

Lithuania

Networks regulatory framework

	1		The largest network in the Baltics, a natural monopoly for distribution services				Electricity	Natural gas
	>99.5%1		of the Lithuanian market				Regulated Asset Base, 2024
							1.3 EURbn	0.3 EURbn
	Allowed revenue						Approved WACC (pre-tax), 2024
=	1 Return on investment (RAB x WACC)	2 +	Depreciation and amortisation	+	3 Additional tariff component		5.09%	5.03%
	4						Regulatory periods
+	OPEX	+	Technological losses	-	Supply of last resort and reactive power income		2022–2026 Current	2024–2028 Current
			+
	Treated as a pass-through	5	Temporary regulatory differences				2027–2031 Next	2029–2033 Next

Strategic focus on electricity network and customers

28/59 1 Indicators are calculated in accordance with the provisions of the description of indicators of reliability and service quality of electricity distribution approved by the State Energy Regulatory Council for the regulatory period (established on the basis of Resolution No. O3E 79 of the State Energy Regulatory Council of January 26). The targets are assessed according to the principles used during the determination of the level and the methodology in force according to which the following cases are excluded from SAIFI: (1) outages caused by natural phenomena corresponding to the values of indicators of natural, catastrophic meteorological and hydrological phenomena – wind speed >28 m/s and by eliminating interruptions all country wise (not regionally); (2) outages caused by faults in the transmission system operator's network.

Customers & Solutions

Strategic priorities :

• 1. Utilising and further expanding our customer portfolio to enable the Green Capacities build -out
• 1. Building a leading EV charging network in the Baltics
• 1. Speeding up the transition from gas to power

Home market:

The Baltic States, Poland and Finland

Utilising and further expanding our customer portfolio to enable the Green Capacities build-out

1.4 million Customers: B2B & B2C in 2023

The largest customer base in the Baltics

Utilising and further expanding the customer portfolio

Exploiting synergies with the Green Capacities segment

– Large customer base supports the Green Capacities build-out through internal PPA's

Expanding electricity supply portfolio to accelerate the green transformation of our customers

• Form Green Capacities offtake portfolio and growing the share of green electricity supplied
• Best in class trading and risk management competences
• Attractive and diverse product portfolio with a focus on power and long-term value
• Great customer experience with digitally advanced customer services

Building a leading EV charging network in the Baltics

EV network will become a significant offtaker of green electricity in the future

• Expanding in the Baltics across public, commercial and home charging segments
• Focused on developing a public EV fast-charging network and being a first-choice provider of charging solutions for the home and business customers
• Exploring the utilization of own EV network's balancing capabilities

Speeding up the transition from gas to power

Optimising our natural gas supply portfolio

• Proactively promoting customers to move from gas to power. Estimating ~5.0 TWh level in 2027
• Our key focus is on electricity supply

Energy supply portfolio, TWh

Electricity Natural gas +7.7–13.2%

Reserve Capacities

Strategic priorities :

Contributing to the security of the energy system

Focus markets :

Lithuania

We utilise reserve capacities to ensure reliability and security of the power system

Option to generate electricity in the market during low renewables generation /positive clean spark spread periods

¹ In 2023, gas-fired capacity of 891 MW has been dedicated to isolated regime services.

² Average availability of Elektrėnai Complex, excluding scheduled repairs in 2023 – 99.4%: CCGT – 99.7%, Unit 7– 98.4%; Unit 8 – 99.9%).

³ Production volumes of electricity in Elektrėnai Complex in 2023 were low due to unfavourable market conditions (high gas prices).

⁴ Share from EBITDA, which was earned in Elektrėnai Complex.

⁵ Services for ensuring of availability of capacity in the amount of 250 MW will be provided to Polish TSO in 2027. Participation in Polish TSO's market tenders is planned for other periods as well.

4. Financials

Investments, target returns, leverage and dividends

Investments over 2024–2027: Green Capacities

mEUR/MW Investments per MW,

¹ Excludes ~0.48 EURbn investments made before 2024, related to the projects with COD in 2024–2027.

Investments over 2024–2027: Networks

Target returns

EBITDA expected to reach EUR ~550–650m in 2027, mainly driven by Green Capacities and Networks

Commitment to a solid investment-grade credit rating

We expect to maintain

BBB or above

credit rating over the 2024–2027 period

We are committed to increase dividends >3% annually

Dividend policy

We are commited to increase dividends to shareholders at a minimum 3% annual rate.

We also have the flexibility to distribute excess cash, if available

¹ Calculated based on the No. of shares (72,388,960 ordinary shares).

² Implied dividend yield (annual) over the 2024–2027 period is calculated based on Ignitis Group's share price: 18.14 €/sh (closing price as of 25th April 2024). Dividend yield for GDRs: 6.9% in 2023.

5. People

Diverse team of energy smart people united by a common purpose

Our people

Our Values

We are organically building an entire organisation from the scratch in renewables

Ignitis Renewables organization growth, No. of employees

We are a diverse team of energy smart people united by a common purpose to create a 100% green and secure energy ecosystem

Take YOUR part in #EnergySmart!

Contributing to Ignitis Group's purpose and strategic priorities by building a diverse team of energy smart people

Strategic priorities	Green	Flexible	Integrated	Sustainable	Creating a 100% green and secure energy ecosystem
Attracting and retaining top talents		Creating new jobs in renewables Increasing attractiveness of the energy sector TOP employer with international HR standards			Top employer
Building critical skills and competencies		Building current and future leadership bench Renewables competence hub Internal career	100% ensured talent pipeline for strategy execution
Having a human-centric approach			Applying a holistic employee well-being approach Growing a diverse and inclusive organisation High rate of positive	employee experience	≥50 employee NPS ~30% women in top management positions in 2027

6. Sustainability

Strategic priorities: decarbonisation, safety, employee experience, diversity and sustainable value creation

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ESG priorities and targets 2027

Priority	Decarbonisation		Safety	Employee experience	Diversity	Sustainable value creation
	Reducing the carbon intensity of scope 1 & 2 GHG emissions	Zero fatal accidents	Total recordable injury rate	Employee experience and well-being2	Gender diversity in top management	Sustainable investments	Sustainable returns
2027 target	215–289 Carbon intensity of scope 1 & 2 GHG emissions, g CO2-eq/kWh	0 fatalities (of employees and contractors)	≤2.1 TRIR, per million hours worked (2024–2027) ≤1.5 ≤2.7 Employees Contractors	≥50 employees promoting the Group as an employer (eNPS)	~30% share of women in top management positions	≥85–90% share of Investments aligned with the EU Taxonomy3 (2024–2027)	≥70–75% share4 of sustainable Adjusted EBITDA4
2023	360 g CO2-eq/kWh	0	0.79 0.931	57.5	23.1%	94.8%	61.4%
SDG contribution
ESG contribution	ENVIRONMENTAL		SOCIAL		GOVERNANCE

¹ Tracking of UAB "Ignitis" TRIR contractors started on 7th of July 2023. Tracking of AB "Energijos skirstymo operatorius" TRIR contractors include full scope of incidents, however, the hours included in TRIR calculations include only contracts above 0.5 EURm/year.

² Experiences of employees in areas such as well-being, learning and growth, equal pay, diversity and inclusion, etc.

³ Share of Investments to be directed to the maintenance or expansion of the EU Taxonomy-aligned activities. There are differences in methodologies used to calculate Investments and actual Taxonomy CAPEX KPI.

⁴ Sustainable Adjusted EBITDA is the share of Adjusted EBITDA related to Taxonomy-aligned activities in total Adjusted EBITDA. The ratio is calculated using the Group's own methodology as it's not based of the EU Commission Delegated Regulation 2021/2178.

Decarbonisation pathway aligned with our business ambitions

¹ 2.4–2.6 GW by 2027, 4–5 GW by 2030, incl. Kruonis PSHP expansion in 2026, commercial-scale batteries by 2027, further offshore wind build-out post 2030. Implementing green hydrogen production and e-fuel conversion pilot project, analyzing potential carbon capture technologies and considering the development of utility scale green hydrogen and e-fuel production capabilities, and the potential to export of surplus energy to contribute to Europe's decarbonization in the long-term.

2 Kruonis PSHP operations, electricity grid losses, offices, replacement of operational vehicle fleet with EVs, etc.

45/59 3 We aim to optimize our gas supply portfolio to an estimated ~5.0 TWh level in 2027 and reduce it further while securing the supply levels required for the security of the energy system during the energy transition period in Lithuania. Our key focus is on electricity supply.

7. Highlights

Growing sustainable return to our shareholders

Highlights

Our purpose is to create a 100% green and secure energy ecosystem for current and future generations

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Our equity story

Renewables-focused integrated utility, leading energy transition in the Baltics:

• 1.4 GW operational.
• 4–5 GW target of installed Green Capacities by 2030 (x4 vs 2022).

• 7 GW Green Capacities Portfolio (x5 vs 2019).

Integrated business model that ensures resilient performance even in volatile market conditions:

• significant share of green flexibility capacity with one of the largest energy storage facilities in Europe.
• Networks RAB of 1.6 EURbn with double-digit growth, required to enable net zero.
• largest customer portfolio in the Baltics supporting Green Capacities growth.

Strong financial profile:

– BBB+ credit rating.

Committed to sustainability:

– target net zero emissions by 2040–2050.

Attractive blend of growth and yield:

• Adjusted EBITDA growth of up to 8%1.
• Dividend yield of ~7–8%2.

An attractive blend of growth and yield A proven track record

x2 Adjusted EBITDA

~7–8% dividend yield 2024–2027

Disclosure summary

Strategic ambitions and financial guidance

Green generation and green flexibility capacity installed: - 2027 - 2030	2.4–2.6 GW 4.0–5.0 GW
Adjusted EBITDA, 2027 - of which a sustainable share1, 2027	550–650 EURm ≥70–75%
Average ROCE, 2024–2027	6.5–7.5%
Net Debt/Adjusted EBITDA, 2024–2027	< 5x
Solid investment–grade rating (S&P), 2024–2027	BBB or above
Dividend policy	minimum 3% annual growth rate
Minimum DPS2, 2027 - - Dividend yield2, 2024–2027	≥1.45 EUR 7.3–8.0%
GHG emissions reduction: - 2027: carbon intensity of scope 1, 2 GHG emissions	215–289 g CO2-eq/kWh
(reducing by 20–40% vs 2023) - 2040–2050: aligning with 1.5 °C scenario alongside	Net zero

¹ Sustainable Adjusted EBITDA is the share of Adjusted EBITDA related to Taxonomy-aligned activities in total Adjusted EBITDA. The ratio is calculated using the Group's own methodology as it's not based of the EU Commission Delegated Regulation 2021/2178.

² Minimum dividend per share is calculated based on the No. of shares (72,388,960 ordinary shares). Implied dividend yield (annual) over the 2024–2027 period is calculated based on Ignitis Group's share price: 18.14 €/sh (closing price as of 25th

April 2024). 3 Share of Investments to be directed to the maintenance or expansion of the EU Taxonomy-aligned activities. There are differences in methodologies used to calculate Investments and actual Taxonomy CAPEX KPI.

Our strategic performance KPIs

Total Investments, 2024–2027	3.0–4.0 EURbn
- of which share of Investments aligned EU Taxonomy 3, 2024–2027 with the	≥85–90%
Green Capacities: electricity generated (net), excl. Kruonis PSHP, 2027	~3.0–4.0 TWh
Electricity SAIFI: 2024–2027 average (per annum)	≤1.05
Electricity Supply Portfolio, 2027	~9.0–11.0 TWh
Average availability of Reserve Capacities, 2024–2027	>98%
Safety at work, 2024–2027: - Fatal accidents of own employees and contractors - Total recordable injury rate (TRIR) and TRIR of own employees and contractors	0 ≤2.1
Engaged employees, diverse and inclusive workplace: - Employee Net promoter score (eNPS), 2024–2027	≤1.5 and ≤2.7 ≥50
Diversity in top management: - Share of women in top management, 2027	~30%

Performance objectives for 2024–2027

Based on the strategic plan for 2024–2027 of the Ignitis Group

Performance criteria	Objective	Weight	Access threshold (70%)	Target and maximum (100%)
Shareholder value	TSR TSR of Ignitis Group vs average TSR of EURO STOXX® Utilities Index1	40%	≥70%2	≥100%2
Returns	Average adjusted ROCE3 over the four years 2024–2027	20%	6.5%2	7.5%2
Green Capacities	Installed Green Capacities4, GW end of 2027	20%	2.42	2.62
Sustainability	Carbon intensity of scope 1 and 2 GHG emissions5, g CO2-eq/kWh for 2027	20%	289	215

¹ TSR (Total Shareholders Return) is calculated as the ratio of the difference between the average share price at the end of the period and the beginning of the period and adding the amount of dividends per share over performance period to the share price at the beginning of the performance period. The average TSR (Total Shareholders Return) of Ignitis Group and EURO STOXX® Utilities Index is calculated in the two-month period (Nov and Dec accordingly) preceding the beginning and the end of the performance period (January 1, 2024 – December 31, 2027), to neutralise any possible volatility on the market. TSR of Ignitis Group is calculated with the assumption that dividends are reinvested as well as EURO STOXX® Utilities Index used for benchmarking (based on gross return index type and EUR currency). Change in the value of the Ignitis Group shares between the beginning and the end of the reference period calculated as a weighted average of the IGN1L (Nasdaq Baltic) and IGN GDR (London Stock Exchange) prices based on volume traded.

² Target will be measured according to the achievement scale with linear interpolation between the entry (70%) and target (100%) thresholds. 3 ROCE is calculated by dividing Ignitis Group adjusted earnings before interest and tax (adjusted EBIT) by its capital employed (average net debt at the beginning and end of the reporting period + average book value of equity at the beginning and end of the reporting period).

⁴ Installed Green Capacities: gross installed capacity of onshore wind, offshore wind, solar, hydro run-of-river, biomass, waste-to-energy, pumped-storage hydro, batteries and power-to-X (if any) for the date at which all the equipment is: (1) installed, (2) connected, (3) authorized by a competent authority to generate energy, and (4) commissioned. Performance testing may still be ongoing.

⁵ Carbon intensity is calculated as a ratio of CO2 eq emissions of scope 1 and 2 (market-based) divided by the sum of total generated electricity (gross) and heat (net). Carbon intensity of scope 1 and 2 (market-based) GHG emissions in 2023: 360 g CO2eq/kWh. The numerator of the ratio excludes out of scope (biogenic CO2) and (potential future) emissions from commercial scale batteries. The denominator of the ratio includes volumes of electricity generated (gross) from wind, solar, waste-toenergy, hydro run-river, pumped-storage hydro and gas-fired sources, and heat produced (net) from waste-to-energy and gas-fired sources. A value proportionate to the share of non-biogenic to biogenic waste at waste-to-energy power plants is applied to generated electricity and heat produced at Vilnius CHP (~47% of generation in 2023) and Kaunas CHP (~57% of generation in 2023) to determine electricity and heat from non-biogenic sources. If the TSO requires Elektrėnai complex to provide system balance services, the target may be adjusted with approval from the Group Supervisory Board.

Purpose-driven priorities

Our purpose is to create a 100% green and secure energy ecosystem for current and future generations

Green Capacities Portfolio

7.4 GW1 (whereof 2.9 GW secured)

	Capacity	COD	Type and proportion of secured revenue
Onshore wind
Eurakras WF	24 MW	2016	PPA – 72%
Vėjo gūsis WF	19 MW	2008–2010	PPA – 70%
Vėjo vatas WF	15 MW	2011	PPA – 73%
Mažeikiai WF	63 MW	2023	PPA – 65%
Tuulenergia WF	18 MW	2013–2014	PPA – 70%
Pomerania WF	94 MW	Q4 2021	CfD – 100%
Silesia WF I	50 MW	Q1 2024	CfD – 100%
Hydro
Kruonis PSHP	900 MW	1992–1998	–
Kaunas HPP	101 MW	1959	PPA – 75%
Combined heat and power
Kaunas CHP WtE unit	24 MW	2020	PPA – 90%
Vilnius CHP WtE unit	20 MW	2021	PPA – 87%
Vilnius CHP biomass unit	50 MW2	2023	PPA – 87%
Kaunas CHP WtE unit	70 MWth3	2020	–
Vilnius CHP WtE unit	70 MWth3	2021	–
Vilnius CHP biomass unit	149 MWth2,3	2023	–
Biomass boiler
Elektrėnai biomass boiler	40 MWth3	2015	–

Under construction

		Capacity	COD	Type and proportion of secured revenue
	Onshore wind
	Silesia WF II	137 MW	H2 2024	CfD / PPA – 100%
	Kelmė WF I	105.4 MW	2025	PPA – 65%
	Kelmė WF II	194.6 MW	2025	-
	Offshore wind
	Moray West4	882 MW	2025	CfD / PPA – 85%
Solar
	Tauragė solar project I	22.1 MW	2024	-
	Latvian solar portfolio I	239 MW	2025	-
	Polish solar portfolio	30 MW	2024	CfD – 100%
Hydro
	Kruonis PSHP expansion project	110 MW	2026	-
Total:		861 MW2

Awarded/contracted

	Capacity	Expected COD
Offshore wind
Lithuanian offshore WF	700 MW	~2030
Total:	700 MW

Green Capacities Portfolio, GW

¹ Portfolio (31 Mar 2024).

²Vilnius CHP biomass unit has reached full COD (73 MWe, 169 MWth), after the COD was achieved for the remaining capacity (23 MWe, 20 MWth) after 31 Mar 2024,

therefore, it is included within the total of under construction. ³Heat is not included within the installed capacity total.

⁴Moray West offshore wind project capacity is 882 MW. However, as the Group owns a minority stake (5%), the capacity is not consolidated.

Green Capacities Portfolio installed capacity 1.4 GW1

Asset name	Eurakras WF, Vėjo vatas WF, Vėjo gūsis WF	Tuuleenergia WF	Pomerania WF	Mažeikiai WF	Silesia WF I	Kaunas HPP	Kruonis PSHP	Elektrėnai boiler	Kaunas CHP	Vilnius CHP	Vilnius CHP3
Country	Lithuania	Estonia	Poland	Lithuania	Poland	Lithuania	Lithuania	Lithuania	Lithuania	Lithuania	Lithuania
Technology	Onshore wind	Onshore wind	Onshore wind	Onshore wind	Onshore wind	Hydro river-flow	Hydro pumped-storage	Biomass	Waste	Waste	Biomass
Capacity	58 MWe	18 MWe	94 MWe	63 MWe	50 MWe	101 MWe	900 MWe	40 MWth	24 MWe 70 MWth	20 MWe 70 MWth	50 MWe 149 MWth
Investment (over the period 2024-2027)	0	0	0	0	~EUR 4 million	~EUR 6 million	~EUR 33 million	~EUR 0 million	~EUR 6 million	~EUR 1 million	~EUR 6 million
Proportion of secured revenue2	72%; 73%; 70%	70%	100%	65%	100%	75%	-	-	90%	87%	87%
Type of secured revenue	PPA	PPA	CfD	PPA	CfD	PPA	-	-	PPA	PPA	PPA
Ownership	100%	100%	100%	100%	100%	100%	100%	100%	51%	100%	100%
Partnership	-	-	-	-	-	-	-	-	Fortum	-	-
COD	2016; 2011; 2008–2010	2013–2014	Q4 2021	2023	Q1 2024	1959	1992–1998	2015	2020	2021	2023–2024

Green Capacities Portfolio under construction 0.9 GW1

Project name	Polish solar portfolio	Silesia WF II	Tauragė solar project I	Moray West offshore wind project6	Latvian solar portfolio I	Kelmė WF I	Kelmė WF II	Kruonis PSHP expansion project	TOTAL
Country	Poland	Poland	Lithuania	The United Kingdom	Latvia	Lithuania	Lithuania	Lithuania
Technology	Solar	Onshore wind	Solar	Offshore wind	Solar	Onshore wind	Onshore wind	Hydro pumped storage
Capacity	30 MW	137 MW	22.1 MW	882 MW	239 MW	105.4 MW	194.6 MW	110 MW	0.9 GW2
Turbine / module / other type of unit manufacturer	17 MW Jinko Solar; 13 MW JA Solar	38 x 3.6 MW Nordex	22.1 MW Trina Solar	60 x 14.7 MW Siemens Gamesa	239 MW Trina Solar	16 x 6.6 MW Nordex	28 x 7.0 MW Nordex	1 x 110 MW Voith Hydro
Investment	~EUR 18 million	~EUR 240 million4	~EUR 16 million	Not disclosed	~EUR 178 million4	~EUR 190 million4	~EUR 360 million4	~EUR 150 million	~EUR 1.2 billion7
Investments made by 31 March 2024	~EUR 14 million	~EUR 233 million	~EUR 12 million	Not disclosed	~EUR 25 million	~EUR 122 million	~EUR 200 million	~EUR 21 million	~EUR 0.6 billion7
Proportion of secured revenue3	100%	100%	0%	85%	0%	65%	0%	0%
Type of secured revenue	CfD	CfD / PPA	-	CfD / PPA	-	PPA	-	-
Ownership	0%5	100%	100%	5%5	100%	100%	100%	100%
Partnership	n/a	n/a	n/a	Ocean Winds	n/a	n/a	n/a	n/a
Progress
FID made	+	+	+	+	+	+	+	+
WTGs erected (units) / Solar modules & inverters installed (MW) / Other type of turbines or units installed (units)	27 / 30	38 / 38	22 / 22	1 / 60	0 / 239	0 / 16	0 / 28	0 / 1
First power / heat to the grid supplied	+	-	-	-	-	-	-	-
Expected COD	2024	H2 2024	2024	2025	2025	2025	2025	2026
Status	Time delay	On track	On track	On track	On track	On track	On track	On track

¹ Portfolio (31 Mar 2024).

²Vilnius CHP biomass unit has reached full COD (73 MWe, 169 MWth), after the COD was achieved for the remaining capacity (23 MWe, 20 MWth) after 31 Mar 2024, therefore, it is included within the total portfolio under construction. ³Secured revenue timeframe differs on a project-by-project basis.

⁴Including project acquisition and construction works.

⁵ Ownership will be 100% after full completion of construction works.

⁶As the Group owns a minority stake of 5%, the project's capacity is not consolidated and is not reflected in the data of Green Generation Portfolio. ⁷Excluding not disclosed investments.

Green Capacities Portfolio awarded/contracted 0.7 GW1

Project name	Lithuanian offshore WF
Country	Lithuania
Technology	Offshore wind
Capacity	700 MW
Investment	Not disclosed
Proportion of secured revenue2	0%
Type of secured revenue	-
Ownership	51%
Partnership	Ocean Winds
Progress
Seabed secured	+
Grid connection secured	+
EIA completed	-
Expected COD	~2030
Status	On track

Reserve Capacities Portfolio operating assets 1.1 GW1

Asset name	Elektrėnai complex: CCGT	Elektrėnai complex: Units 7-8
Electricity capacity	455 MW	600 MW
Energy source	Gas	Gas
Location	Lithuania	Lithuania
Revenue source	~ 17%/83% regulated/merchant2	~ 75%/25% regulated/merchant2
Other info	COD 2012	2 units of 300 MW
Investments 2024–2027	up to 35	EURm3

Glossary

Advanced development Pipeline	Projects which have access to the electricity grid secured through preliminary grid connection agreement (agreement signed and grid connection fee has been paid).
Awarded / Contracted	Projects with one of the following: (i) awarded in government auctions and tenders (incl. CfD, FiP, FiT, seabed with grid connection), or (ii) for which offtake is secured through PPA or similar instruments (total secured offtake through PPA and other instruments should cover at least 50% of the annual expected generation volume of the asset).
Commercial operation date	Projects with installed capacity achieved.
Early development Pipeline	Projects of planned capacity higher than 50 MW with substantial share of land rights secured.
Installed Capacity	The date at which all the equipment is: (1) installed, (2) connected, (3) authorized by a competent authority to generate energy, and (4) commissioned. Performance testing may still be ongoing.
Pipeline	Portfolio, excluding installed capacity projects.
Secured capacity	Green Generation projects under the following stages: (i) installed capacity, or (ii) under construction, or (iii) awarded / contracted.
Green Capacities Portfolio	All Green Capacities projects of the Group, which include: (i) secured capacity, (ii) advanced development pipeline and (iii) early development pipeline
Under Construction	Project with building permits secured or permitting in process including one of following: (i) notice to proceed has been given the first contractor or (ii) final investment decision has been made.

Abbreviations

%	Percent	eNPS	Employee Net Promoter Score	MW	Megawatt
°C	Degree Celsius		European Network of Transmission System Operators for Electricity	MWe	Megawatt electric
API	Application Programming Interface		Environmental, social and corporate governance	MWth	Megawatt thermal
avg.	average	EU	European Union	n/a	Not applicable
B2B	Business to business	EUAs	EU allowances	OPEX	Operating expenses
B2C	Business to consumer	EV	Electric vehicle	p.p.	Percentage points
BEMIP	Baltic Energy Market Interconnection Plan	g	Gram	PPA	Power purchase agreement
bn	Billion	GDP	Gross domestic product	PSHP	Pumped Storage Hydroelectric Power Plant
bps	Basis point	GHG	Greenhouse Gas	RAB	Regulated asset base
CAGR	Compound annual growth rate	Gt	Gigaton	SAIFI	The System Average Interruption Frequency Index
CCGT	Combined Cycle Gas Turbine Plant	GW	Gigawatt	sh.	Share
CfD	Contract for difference	GWh	Gigawatt hour	TRIR	Total Recordable Incident Rate
CHP	Combined heat and power	H2	Hydrogen	TWh	Terawatt-hour
CO2	Carbon dioxide	ICIS	Independent Commodity Intelligence Services	WACC	Weighted average cost of capital
CO2-eq	Carbon dioxide equivalent	IoT	Internet of Things	WF	Wind farm
COD	Commercial operation date	IRR	Internal rate of return	WtE	Waste-to-energy
DPS	Dividend per share	IT	Information technology
EBITDA	Earnings before interest, taxes, depreciation, and amortization	k	thousand
ECB	European Central Bank	km	Kilometer
EHB	The European Hydrogen Backbone	kWh	Kilowatt-hour
EIA	Environmental impact assessment	m	Million