KN Energies AB

Investor Presentation • Aug 25, 2022

AB KLAIPĖDOS NAFTA

UNAUDITED FINANCIAL RESULTS OF KN GROUP FOR 2022 HY1

August 25, 2022

DARIUS ŠILENSKIS CHIEF EXECUTIVE OFFICER MINDAUGAS KVEKŠAS CHIEF FINANCIAL OFFICER

REGULATED ACTIVITY

1.41 EUR/MWh

variable component of liquefied natural gas regasification service for 2023.

4.16 PERCENT

the regulated rate of return (WACC) calculated for the Company for 2023 (4.14 percent in 2022).

TECHNICAL INFRASTRUCTURE STUDIES

KN is initiating studies to assess the possibilities of expanding the annual regasification capacity of the Klaipėda LNG terminal.

BUSINESS DEVELOPMENT

A LETTER OF INTENT

KN and the companies of the largest Polish oil group ORLEN, ORLEN Neptun I and Energa Wytwarzanie, signed a letter of intent on the possibility of cooperation in the provision of operation and maintenance (O&M) services for wind farms in the Baltic Sea.

FINANCIAL PERFORMANCE

17 MEUR

Group EBITDA 17 MEUR - 19% higher than for the respective period in 2021.

36 MEUR

Group revenue 36 MEUR - 14% higher than for the respective period in 2021.

3.5 MEUR

Oil Terminals segment EBITDA 3.5 MEUR - 9% higher than for the respective period in 2021.

OTHER NEWS

BALTIC LNG & GAS FORUM

the Baltic LNG & Gas Forum took place in Klaipėda, the main partner of which was KN.

300TH LOADING

OPERATION

the 300th loading operation took place since the start of the LNG terminal's operations in 2014.

SELECTION OF SUPERVISORY COUNCIL

Ministry of Energy of the Republic of Lithuania, announced a selection of candidates for members of the Supervisory Council of KN.

BUSINESS OVERVIEW

Increasing demand for fuels had a positive effect on transshipment volumes through KN oil terminals and led to 22% higher transshipment volumes than in HY1 2021.

31% HIGHER TRANSSHIPMENT OF BIOFUELS AND PETROCHEMICALS

During the 6 months of 2022 KN loaded about 93 kt of biofuels and petrochemical products or 31% higher compared to same period in 2021.

LOW DEMAND FOR STORAGE

Low demand for storage services due to continuing backwardation tendencies in oil product markets due to continued downward pressure on gasoline/diesel inventories levels supported by i) higher mobility activities due to start of driving season, ii) the start of seasonal maintenance works in lots of European refineries, iii) restrictions to Russian diesel and gasoline supply to EU.

KN TAKES ~26% OF BITUMEN TRANSSHIPMENT MARKET

Bitumen handling operations started and successfully implemented using tanks which were reconstructed in 2021 (a total of 8.4 thousand m³ ). As a result, Klaipėda oil terminal took about 26.0% of the bitumen transshipment market in the terminals of the Baltic countries and the Gulf of Finland (Russia).

49% HIGHER IMPORT OF LIGHT PRODUCTS

The import of light oil products into the Company's tanks dedicated for the tank trucks was 218 thousand tonnes and was 48.9% higher compared to the same period in 2021.

Lower Russian gas imports resulted in more LNG coming to Europe through LNG terminals. The average utilization of Klaipėda's LGN terminals was 59% (versus 42% a year ago).

AVERAGE EUROPE'S LNG TERMINALS UTILIZATION 61%

The average utilization of Europe's LNG terminals was 61% (vs 42% year ago). The average Dutch TTF Natural Gas Index was equal to 101.52 EUR/MWh versus 19.46 EUR/MWh in the same period year ago (source: ICE).

23.9 TWh FULLY BOOKED FOR CURRENT GAS YEAR

The available regasification capacity of Klaipeda's LNG terminal (23.9 TWh) has been fully booked for the current gas year (until 30 September 2022). In addition, there are no available capacities left for the calendar year 2022.

AMENDMENTS TO REGULATIONS

NERC approved a new version of the Regulations for use of the liquified natural gas terminal.

FINANCIAL RESULTS

CONSOLIDATED FINANCIAL RESULTS (UNAUDITED) FOR 2022 HY1, 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.
• Oil Terminals (OT): • Klaipėda Oil Terminal and
  • Regulated LNG activities (LNGT): • Klaipėda LNG Terminal
• Subačius Oil Terminal

FREE CASH FLOW (FCF), MEUR

Higher adjusted net profit (loss) and decreased working capital (mainly due to increased trade payables) resulted in a better FCF.

1.7 MEUR

Invested in modernization of jetty No. 1 and No. 2 both in HY1 2022 and HY1 2021.

0.2 MEUR

Invested in HY1 2022 in other projects such as bitumen storage and handling reconstruction project and tanker truck loading bay reliability and safety improvements.

	30-06-2022
61.5	63.5
(119.9)	(131.7)
(287.1)	(288.4)
(345.5)	(356.6)

PROFITABILITY AND MARKET VALUE RATIOS FOR HY1 OF 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)	30 JUNE 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

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