KN Energies AB

Investor Presentation • Feb 28, 2023

AB KLAIPĖDOS NAFTA

UNAUDITED FINANCIAL RESULTS OF KN GROUP FOR 2022

February 27, 2023

DARIUS ŠILENSKIS CHIEF EXECUTIVE OFFICER MINDAUGAS KVEKŠAS CHIEF FINANCIAL OFFICER

REGULATED ACTIVITY

LNG TERMINAL CAPACITY EXPANSION

KN together with gas transmission system operator AB Amber Grid (hereinafter together – the Operators) seek to evaluate possibilities to expand current Klaipeda LNG terminal regasification capacity. Operators seek to assess the market participants' demand of Expanded Capacity and announced a joint process of Open Season procedure at Klaipeda LNG Terminal and Lithuanian gas transmission system.

LONG-TERM STRATEGY

KN has selected international experts for consulting on the development of the company's new long-term operational strategy. The tender for the consultants has been awarded to the global consultancy firm Simon-Kucher & Partners.

10 YEAR STORAGE SERVICES

AB Klaipėdos nafta and public institution Lithuanian Energy Agency has signed a contract on storage, accumulation, and administration services of Lithuanian state-owned light oil products (diesel fuel and petrol) in Company's Subačius oil terminal. This contract came into force on 1st of January 2023 and is valid for the period of 10 (ten) years.

BUSINESS NEWS FINANCIAL PERFORMANCE

35.5 MEUR

Group EBITDA 37% higher than in 2021.

77.8 MEUR

Group revenue 26% higher than in 2021.

9.3 MEUR

Oil Terminals segment EBITDA 74% higher than in 2021.

CHANGES IN COLLEGIAL BODIES

By the decision of Supervisory Council of KN, as of 22 of February, until the end of term of office of Company's acting Supervisory Council, Šarūnas Radavičius was elected as an independent member of the Audit Committee and Živilė Valeišienė was elected as an independent member of the Remuneration and Nomination Committee.

KN AWARDED TRANSPARENCY ACADEMY CERTIFICATE

In 2021-2022, KN participated in the Transparency Academy, an exchange project on good anti-corruption practices. The project was concluded at the Transparency Celebration held at the Presidential Palace of the Republic of Lithuania, during which the Director of the Special Investigation Service (STT) Žydrūnas Bartkus handed over the certificate of the Transparency Academy to KN.

BUSINESS OVERVIEW

Continuous exploration of new transhipment routes and high demand for KN terminal as oil products import hub led to 17% higher transhipment volumes than in 2021.

3 TIMES HIGHER TRANSHIPMENT OF PETROCHEMICALS

Loading of petrochemical products intensified and in 2022 was about 3.0 times higher than in 2021, due to new clients attracted.

KN TAKES ~22% OF BITUMEN TRANSHIPMENT MARKET

Bitumen handling operations started and successfully implemented using tanks reconstructed in 2021. During 2022, Klaipėda oil terminal took about 22% of the bitumen transhipment market in the terminals of the Baltic countries and the Gulf of Finland (Russia).

45% HIGHER REVENUE FROM RENT OF SHORE TANKS

Intensified transhipment activity contributed to increased demand for tank reservation and storage services of handled oil products – revenue from the rent of shore tanks in 2022 increased 45% compared to 2021.

2022 marked as a record year for Klaipėda's LNG terminal with 32 TWh of regasification and reloading quantities increasing by 96% from the year before

96% HIGHER REGASIFICATION AND RELOADING QUANTITIES

54 LNG carriers have arrived at the LNG terminal during 2022 and 32 TWh of LNG have been regasified and reloaded during 2022 which signifies a record year from the start of operations.

AVERAGE EUROPE'S LNG TERMINALS UTILIZATION 64%

The average utilization of Europe's LNG terminals was 64% (vs 39% a year ago). The average utilization of Klaipėda LNG terminal was 72% (since May, 2022 terminal works at maximum level). The average Dutch TTF Natural Gas Index was equal to 131.80 EUR/MWh versus 38.57 EUR/MWh in the same period year ago (source: ICE).

79% OF LITHUANIA'S LNG CONSUMPTION IMPORTED VIA LNGT

In 2022, Lithuania's natural gas consumption was about 15.6 TWh, 79% from all imported natural gas in Lithuania's transmission system operator AB "Amber Grid" system were from Klaipeda LNGT.

FINANCIAL RESULTS

CONSOLIDATED FINANCIAL RESULTS (UNAUDITED) FOR 2022, MEUR

SEGMENTS EXPLANATION

• Commercial LNG activities (comLNG):
• small-scale LNG reloading station in Klaipėda
• operation of LNG terminal in Açu port in Brazil and
• business development projects and consultations.
• Klaipėda Oil Terminal and • Subačius Oil Terminal

▪ Oil Terminals (OT):

▪ Regulated LNG activities (LNGT):

• Klaipėda LNG Terminal

Higher net profit and lower investments resulted in a better FCF.

MEUR	31-12-2021	31-12-2022
Cash and cash equivalents	61.5	72.4
Loans	(119.9)	(143.1)
Lease liabilities	(287.1)	(261.7)
Net Debt	(345.5)	(332.4)

NET DEBT DEVELOPMENT, MEUR

PROFITABILITY AND MARKET VALUE RATIOS FOR 2022

* Net profit margin, ROE, ROA, EPS and P/E ratios are calculated based on adjusted profit (loss) and adjusted equity figures.

Q & A

OTHER INFORMATION

MEASURE	EXPLANATION *
EBITDA	Earnings before taxes – Financial activity income + Financial activity expenses + Depreciation and amortization expenses + Impairment expenses and reversals
EBITDA margin	EBITDA / Revenue
Gross profit margin	(Revenue – COGS) / Revenue x 100
Net profit margin	Adjusted profit (loss) for the period / Revenue
ROE	Adjusted profit (loss) of the last twelve months / (Equity at the end of Q of the reporting year + Equity at the end of Q of the prior reporting year) / 2
ROA	Adjusted profit (loss) of the last twelve months / (Total assets at the end of the period + Total assets at the beginning of the period) / 2
Price / earnings ratio	Average share price for the period / (Adjusted profit (loss) of the last twelve months / Total number of shares at the end of the period)
Net Debt	Cash and cash equivalents – long-term and short-term loans – long-term and short-term lease liabilities
Net Debt / EBITDA	Net Debt / EBITDA for the last twelve months
Earnings per share	Adjusted profit (loss) for the period / total number of shares at the end of the period

* Adjusted financial indicators/data are recalculated and presented by eliminating from net profit (loss) the following amounts: (1) the impact of unrealised foreign currency exchange rates (forex) arising from IFRS 16 requirements, (2) respective impact of deferred income tax arising from forex and (3) impact of financial derivatives.

Since 2003 the shares of the Company are listed on NASDAQ OMX Vilnius stock exchange.

ISIN code – LT0000111650 Abbreviation – KNF1L

SHAREHOLDER'S NAME (company's name, address, company code of registration)	31 DECEMBER 2022		31 DECEMBER 2021
	NUMBER OWNED SHARES (UNIT)	PART OF AUTHORIZED CAPITAL (%)	NUMBER OWNED SHARES (UNIT)	PART OF AUTHORIZED CAPITAL (%)
The Republic of Lithuania, represented by the Ministry of Energy of the Republic of Lithuania	275,687,444	72.47	275,687,444	72.47
UAB koncernas "ACHEMOS GRUPĖ"	39,662,838	10.43	39,662,838	10.43
Other (each owning less than 5%)	65,046,303	17.10	65,046,303	17.10
Total	380,396,585	100.00	380,396,585	100.00

TRADING IN KNF1L SHARES ON NASDAQ VILNIUS STOCK EXCHANGE IN 2022

KNF1L SHARE PRICE, NASDAQ VILNIUS GI AND BALTIC BENCHMARK GI INDEXES COMPARISON IN 2022

THANK YOU FOR YOUR ATTENTION

AB KLAIPĖDOS NAFTA

Registered address: Burių str. 19, LT-92276, Klaipėda Lithuania

Tel. +370 46 391772 E-mail: media@kn.lt www.kn.lt