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Petrol Group

Annual Report (ESEF) Apr 10, 2025

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ANNUAL REPORT OF THE PETROL GROUP AND PETROL d.d., LJUBLJANA

2024

TABLE OF CONTENTS

  1. INTRODUCTION…………………………………….………………....…3
  2. INTEGRATED BUSINESS REPORT .............................................. 19
  3. BUSINESS REPORT……………………………………………………19
  4. SUSTAINABILITY REPORT …………………………………..……..119
  5. ESRS 2 GENERAL DISCLOSURES…………………………………………..……..….…130
  6. E ENVIRONMENT…………………………………………………………………………….177
  7. S SOCIETY…………………………………………………………………….……..……….255
  8. G GOVERNANCE…………………………………………………………………………….301
  9. FINANCIAL REPORT………………………………………………….320

1. INTRODUCTION

  1. LETTER FROM THE PRESIDENT OF THE MANAGEMENT BOARD………………5
  2. STATEMENT OF THE MANAGEMENT'S RESPONSIBILITY…………………….…..8
  3. REPORT OF THE SUPERVISORY BOARD ……………………………………………9
  4. BUSINESS HIGHLIGHTS OF THE PETROL GROUP 2024 ………………………….13
  5. ALTERNATIVE PERFORMANCE MEASURES ………………………………………..14

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024

1. Letter from the President of the Management Board

Dear shareholders, business partners and colleagues,

2024 proved a year of both challenges and achievements for the Petrol Group. Despite regulatory restrictions and geopolitical uncertainties, effective risk management, adaptation of business process, and a focus on cost efficiency allowed us to generate results that exceed both last year’s outturn and the objectives set. Petrol and the Petrol Group have successfully entered their eightieth year of operation. This would not have been possible without the expertise, perseverance and dedication of Petrol employees who are committed to performing their work efficiently and successfully. My sincere gratitude goes out to each individual who helps to co-create Petrol's story.

Energy regulation and economic outturn

Energy regulation was gradually relaxed over the course of 2024 – firstly for natural gas sales, then for electricity. In the second half of the year, regulation of petroleum product margins was also somewhat relaxed, more significantly in Croatia than in Slovenia. Nevertheless, regulated margins in Slovenia are still among the lowest in Europe, affecting our investment ability and long-term sustainability of our operations. The challenges were responded to using a combination of cost actions and good sales results.

In 2024, the Petrol Group generated EUR 6.1 billion in revenue, with volumes of petroleum products, natural gas and electricity sold remaining at high levels. Gross profit amounted to EUR 730.4 million, representing an 8 percent growth compared to 2023. EBITDA reached EUR 314.2 million, which is 15 percent more than in the previous year and 3 percent above our planned targets. The net profit amounting to EUR 145.9 million was 7 percent higher than in 2023, whereby profit before tax reached EUR 188.1 million, a year-on-year increase of EUR 20.3 million or 12 percent.

In 2024, EUR 60.1 million were allocated for investments, which is less than planned, mainly due to uncertainties related to too low regulated margins.

and increasing environmental and geostrategic risks. In the second half of the year, we fast-tracked the investments, but the investment activities are still underway and will continue in 2025 with an emphasis on investments in the energy transition, focusing on expanding the range of sustainability and mobility solutions on offer. In 2024, our investment in electric charging stations was accelerated, turning us into the leading partner in the region in terms of the number of charging stations.

In 2024, the Petrol Group recorded the best results thus far…

… despite the more stringent environmental regulatory framework!

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024

Preparing for new sustainability reporting

For the Petrol Group, 2024 also marked the year during which it prepared itself for a new period of sustainability reporting. The Corporate Sustainability Reporting Directive (CSRD)1 brings a more ambitious and structured framework, which includes European Sustainability Reporting Standards (ESRS)2. This makes sustainability reporting even more transparent, structured and comparable, which will benefit companies, investors and the general public. Preparing for this step required a lot of effort, but it will enable a better understanding of our impact on the environment and society and contribute to the further development of sustainable business practices.

2025 targets

In addition to setting very ambitious goals for 2025, this year we will also carry out a series of activities that will highlight our role in the supply of energy commodities, energy development in the region, and sustainable solutions for the future. It is estimated that the year will be marked by continued volatility in global energy markets, driven by geopolitical tensions, inflation, and energy price regulation. Especially in Slovenia, which is the largest market for the Petrol Group, low margins on petroleum products continue to exercise pressure on our operations. Although projections indicate a further moderation in energy prices, regulatory requirements and costs associated with the green transition, such as increasing the share of biofuels and environmental legislation, will pose a challenge.

The Petrol Group will adapt its activities to these circumstances by further optimising its processes and carefully managing costs. The objective is to ensure long-term stability and performance, including through additional investments in digitisation and the introduction of operational efficiency improving actions. At the same time, in an uncertain environment, special attention will be paid to risk management and strengthening the capital structure.

The Petrol Group's key financial targets for 2025 are a sales revenue of EUR 6.1 billion, gross profit of EUR 789 million, EBITDA of EUR 339 million, net profit of EUR 177.8 million and net debt/EBITDA of 1.2.

This year, the investment activity is planned to be increased to a foreseen EUR 150 million, with more than half of these funds being allocated to energy transition projects, including investments in renewable energy sources, the digitisation and expansion of mobility offerings.

Ambitious sales plans, process optimisation and cost management serve as the basis for generating added value for all stakeholders.

A gradual and balanced transition

One of the Petrol Group's main projects in 2025 will be the development of a new business strategy until 2030. This strategy will focus on a gradual and balanced transition to sustainable energy solutions and adaptation to rapid changes in energy markets. The strategy will be based on digitisation, energy efficiency and the introduction of

1 CSRD – Corporate Sustainability Reporting Directive

2 ESRS – European Sustainability Reporting Standards

new business models that will ensure stability and competitiveness in a rapidly changing environment. There are no shortcuts in the energy industry. Any change must be based on real data, a well-thought-out strategy, and long-term planning. The green transition is no exception. So the question is not whether, but how. In this regard, energy security and economic competitiveness should not be a side issue. A too rapid and reckless phasing out of established energy sources without suitable alternatives can lead to higher energy prices and supply disruptions. This is definitely not a path one would want to follow.

Unstoppable for as many eight decades

On Petrol's 80th anniversary, our vision is reaffirmed - to be an integrated partner in the energy transition with an excellent user experience for households, the private and public sectors. The outlook remains focused on growth and development. I believe that thoughtful strategic decisions, a focus on efficiency, and an innovative approach to energy challenges will allow us to continue to create a stable and successful future for the Petrol Group and all our stakeholders.

The milestones in our Company's development, which has been named The Path of the Unstoppable, tell the story of decades of breakthroughs, opening new horizons, and growth that has led Petrol from a small company to the leading energy and trade provider in the region. This is the story of all of you who have co-created this development with us. This path isn't stopping. We have been unstoppable for 80 years. And we will continue to be like that in the future.

Thank you for your trust and support.

Respectfully yours,

Sašo Berger

President of the Management Board

In the future, we will continue to strengthen our role in the supply of energy commodities, energy development in the region, and the introduction of sustainable solutions for the future.

A balanced transition to sustainable solutions in the face of rapid changes in the energy market must ensure energy security.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024

2. Statement of the Management's responsibility

Pursuant to Article 60a of the Companies Act, members of the Management Board and the Supervisory Board of Petrol d.d., Ljubljana state that the Annual Report of the Petrol Group and Petrol d.d., Ljubljana for the year 2024 with all components, including the corporate governance statement and sustainability report has been prepared and published in accordance with the Companies Act, the Financial Instruments Market Act and the International Financial Reporting Standards and sustainability reporting standards, as adopted by the EU.

As provided in Article 134 of the Financial Instruments Market Act, members of the Management Board of Petrol d.d., Ljubljana, comprising Sašo Berger, President of the Management Board, Drago Kavšek, Member of the Management Board, Marko Ninčević, Member of the Management Board, Jože Smolič, Member of the Management Board, Metod Podkrižnik, Member of the Management Board and Zoran Gračner, Member of the Management Board and Worker Director, declare that to their best knowledge and belief:

  • the financial report of the Petrol Group and Petrol d.d., Ljubljana for the year 2024 has been drawn up in accordance with the International Financial Reporting Standards as adopted by the EU and gives a true and fair view of the assets and liabilities, financial position, financial performance and comprehensive income of the company Petrol d.d., Ljubljana and other consolidated companies as a whole;
  • the business report of the Petrol Group and Petrol d.d., Ljubljana for the year 2024 gives a fair view of the development and results of the Company’s operations and its financial position, including a description of the material risks that the company Petrol d.d., Ljubljana and other consolidated companies are exposed to as a whole.

The Management Board confirms that the Sustainability Report has been drawn up in accordance with applicable legislation in Slovenia and the European Union, including the European Sustainability Reporting Standards (ESRS) and Article 8 of the Taxonomy Regulation. In drawing up the Sustainability Report, appropriate judgements, assessments and assumptions were used, which, in the given circumstances, take into account the most

appropriate methods for the Company and the Group, on the basis of which the assurances below are provided. The basis for the sustainability report is the double materiality assessment of the Petrol Group. The Members of the Management Board ascertain that the Sustainability Report for 2024, to the best of their knowledge, contains a true and fair view of the environmental, social and governance aspects of the Group.

Sašo Berger

Drago Kavšek

President of the Management Board

Member of the Management Board

Marko Ninčević

Jože Smolič

Member of the Management Board

Member of the Management Board

Metod Podkrižnik

Zoran Gračner

Member of the Management Board

Member of the Management Board

and Worker Director

Ljubljana, 2 April 2025

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024

3. Report of the Supervisory Board

Composition of the Supervisory Board in 2024

The Supervisory Board of Petrol d.d., Ljubljana has worked in its current composition since 22 April 2021. In 2024, the Supervisory Board was composed of the President Janez Žlak, the Deputy President Borut Vrviščar and the Members Mladen Kaliterna, Alenka Urnaut, Mario Selecky, Aleksander Zupančič, Robert Ravnikar, Marko Šavli and Alen Mihelčič. The composition is diverse in terms of education, professional background and personality traits, all of which allow for an effective professional complementarity and the exchanging of opinions and views.

In 2024, all Supervisory Board members attended meetings regularly and made unanimous decisions regarding virtually all matters discussed. The Supervisory Board members thoroughly prepared themselves for the topics discussed, made constructive proposals, and adopted decisions in line with the Rules of Procedure, internal regulations and statutory powers. The work of the Supervisory Board was effectively supported by the substantive proposals of the Supervisory Board’s two committees. The Supervisory Board kept the stakeholders informed on the Petrol Group’s performance on a regular and timely basis.

The Supervisory Board had 14 meetings in 2024, of which eight were scheduled in the financial calendar for 2024 and the other six were extraordinary meetings, intended mainly for managing costs and financially stabilising the Company in the light of the energy price regulation and its impact on the operations and, in the last quarter of the year, for implementing the procedure to record candidates for new members of the Supervisory Board.

The most important topics discussed at Supervisory Board meetings in 2024

In January 2024, the Supervisory Board met to approve the business plan for 2024. In February 2024, the Supervisory Board met to supervise the operations in January and be briefed on the estimate of results from the sales of petroleum products at service stations in the time of the effective Decree determining the prices for certain petroleum products (Official Gazette of the RS, Nos. 66/23 and 120/23), which it continued to consistently monitor throughout the entire year.

The Supervisory Board met two times in March 2024 to discuss the unaudited annual report for 2023 and related matters.

In April 2024, the Supervisory Board approved the Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2023, discussed the proposal on the allocation of accumulated profit, approved the convening of the 38th General Meeting of Shareholders and, additionally, discussed the strategy of the subsidiary MBills d.o.o. (now Petrol Pay d.o.o.).

A diverse composition and varied competences of the Supervisory Board and its committees are the foundations for the good work performed by the Supervisory Board.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024

Public

In May 2024, the Supervisory Board discussed the report on the operations of the Company.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024

and the Petrol Group in the first three months of the year. The Supervisory Board also discussed the merger of EKOEN d.o.o. and EKOEN S d.o.o. to Petrol d.d., Ljubljana. Two Supervisory Board meetings were held in June 2024 to discuss strategic topics: the merger of VE Ljubač d.o.o. to VE Glunča d.o.o., sales of assets of the Črnomelj Biogas Plant and the termination of Petrol d.d., Ljubljana’s business unit Črnomelj Biogas Plant; furthermore, the Supervisory Board discussed a wide range of service stations that were either closed or newly opened by Petrol. Throughout the year, the Supervisory Board deliberated over cost optimisation and analysed all legal options for a deregulation of petroleum product prices lifted and the damage suffered by the Company in that respect reimbursed. Regarding that, the Supervisory Board also discussed the topic with external legal advisors on several occasions.

In August 2024, the Supervisory Board discussed the report on the operations of the Company and the Petrol Group in the first six months of 2024. In October 2024, the Supervisory Board discussed strategic topics in two meetings (Efficient public lighting project under the PPA model in the Republic of Serbia, Municipality of Mali Iđoš; Projekt Efficient public lighting project under the PPA model in the Republic of Serbia, City of Subotica, Oil & Gas E2E supply chain digitalisation project, and an overhaul of the Petrol Pay payment and financial services). In addition, the Supervisory Board started the recording procedure for Supervisory Board member candidates. In the context of the candidacy procedure, the Supervisory Board, together with the Human Resources and Management Board Evaluation Committee, discussed 40 applications for Supervisory Board members.

Three meetings were held in November and December 2024. In addition to two regular meetings where the report on the operations in the first nine months of 2024, activities relating to the independence and transparency of the members of the Supervisory Board and the outline of the business plan for 2025 were discussed, one extraordinary meeting was held in respect of the procedure for selecting candidates for new Supervisory Board members.

The Supervisory Board, acting within its powers, made responsible decisions and discussed a number of other matters:

  • Adoption of the 2024 Internal Audit work programme,
  • Adoption of the 2024 Audit Committee work programme,
  • Distribution of powers between the members of the Management Board;
  • Giving consent to the Management Board in accordance with the Articles of Association and other forms of approval for Management Board proposals,
  • Discussing the Workers’ Council report on the situation in the field of worker participation in management,
  • Discussing the issues of including ESG factors in risk management and business decision-making processes and briefing on the challenges related to CSRD reporting and the Sustainability Statement,
  • Briefing on the development of requirements regarding the minimum safeguards in the framework of EU taxonomy and their relevance to the Company’s reporting.

The Supervisory Board also paid close attention to the legal options for abolishing the regulation of petroleum product prices.

Public

• Managing potential conflicts of interest (the statements required under the applicable code were signed by Supervisory Board members upon their appointment and also at the end of the financial year, and published on the Company’s website),

• Giving consents to the Management Board in accordance with the Articles of Association and other forms of approval for Management Board proposals.

All the working procedures of the Supervisory Board are geared towards ensuring the basic rules that must apply in the effective operation of this body:

  • Compliance with the rules and guidelines stipulated in its Rules of Procedure,
  • Ongoing training of everyone involved in the functioning of this body and adopting new best practices related to corporate governance,
  • The transparent functioning of the Supervisory Board in relation to the Management Board and vice versa, and with all external stakeholders,
  • A sufficient number of meetings to provide a thorough insight into the operations and orientations of future development,
  • Full attendance of all Supervisory Board members and the proactive work of each Supervisory Board member,
  • Training of members, learning about new trends, key personnel and the structure of the Company and the Petrol Group and its processes,
  • Self-assessment by the Supervisory Board with a view to identify the necessary changes and implement measures on a timely basis, and a number of other matters that fall within the Supervisory Board’s responsibility in accordance with the law, the Articles of Association and the Rules of Procedure.

Work of the Supervisory Board’s Committees

The Audit Committee of the Supervisory Board had eight meetings in 2024 where it

discussed quarterly reports on the operations of the Petrol Group and Petrol d.d., Ljubljana, and standard and other matters, such as:

  • the progress of the preliminary audit of the Annual Report for 2024,
  • the preparation of the 2025 Audit Committee work programme,
  • credit, foreign exchange and price risk management,
  • risk management in the Petrol Group by quarters of the year and the annual review thereof,
  • briefing on the Internal Audit reports and the 2025 Internal Audit work programme,
  • briefing on the report of authorised officers concerning the implementation of corporate integrity guidelines,
  • discussing the guidelines governing the performance of non-audit services by the statutory auditor and proposed them to the Supervisory Board for adoption,
  • briefing on and regular monitoring of the expected changes in the International Financial Reporting Standards on a regular basis and assessing their potential effect on the financial statements,
  • conducting an annual interview with the Director of Internal Audit,
  • briefing on and monitoring of the results of the external audit of Internal Audit’s work,
  • other topics that are within its competence.

The Committee also discussed the audited annual report on several occasions and submitted a proposal for its endorsement to the Supervisory Board, and deliberated over topics related to the Supervisory Board and the annual General Meeting of Shareholders.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024

The Human Resources and Management Board Evaluation Committee of the Supervisory Board met seven times in 2024, mainly to discuss the Remuneration Policy for Management and Supervisory Bodies of Petrol d.d., Ljubljana, which was submitted for adoption to the General Meeting of Shareholders, and the procedure for appointing candidates for new Supervisory Board members where it deliberated over the applications received from the candidates, interviewed them and advised the Supervisory Board on the further selection procedure in preparation for the General Meeting of Shareholders.

The Supervisory Board monitored the work of its committees on the basis of their regular reporting to the Supervisory Board. Based on the execution of all committee resolutions and the review of their work and the reports on their work at the meeting in December, the Supervisory Board – in the context of self-assessing its work – assessed the work of both committees as very good.

Unaudited business results of the Petrol Group in 2024

At its 62nd meeting of 13 March 2025, the Supervisory Board of Petrol d.d., Ljubljana discussed the unaudited business results of the Petrol Group and Petrol d.d., Ljubljana for 2024. The Petrol Group’s sales revenue stood at EUR 6.1 billion in 2024, a year-on-year decrease of 12 percent; gross profit was recorded in the amount of EUR 730.4 million, which is 8 percent more than in 2023; EBITDA stood at EUR 314.2 million, a 15-percent increase compared to 2023; and net profit at EUR 145.9 million, up 7 percent on the year before.

Endorsement of the 2024 Annual Report

At its 63rd meeting of 9 April 2025, the Supervisory Board discussed the Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2024. Having verified the Annual Report and the financial statements with notes, the Management Board’s proposal on the allocation of the accumulated profit, and the certified auditor’s report, the Supervisory Board endorsed the audited Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2024.

As part of the Annual Report adoption, the Supervisory Board also put forward its position regarding the corporate governance statement and the statement of compliance with the applicable code that are included in the business section of the Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2024, and concluded that it is a true reflection of the corporate governance in place in 2024.

Dr Janez Žlak

President of the Supervisory Board

Ljubljana, 9 April 2025

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024

Business highlights of the Petrol Group 2024


1. Alternative performance measure (APM) as defined in chapter Alternative Performance Measures.

EBITDA = Operating profit + net impairment losses on financial and contract assets + Depreciation and amortisation charge.

Sales to final customers, trading and management of the retail portfolio.

Since 2023, forwards have been included under gains/losses on derivatives; until 2022 they were carried under finance income/expenses.

The Petrol Group Unit 2022 2023 2024 Index 2024 / 2023 Index 2024 / 2022
Revenue from contracts with customers EUR million 9,456.7 6,982.7 6,111.7 88 65
Gross profit EUR million 393.4 677.6 730.4 108 186
Gross profit with DFI EUR million 406.3 712.1 750.4 105 185
Operating profit EUR million -7.9 175.6 208.2 119 -
Net profit EUR million -2.7 136.6 145.9 107 -
Equity EUR million 860.2 923.0 976.5 106 114
Total assets EUR million 2,740.6 2,635.3 2,447.1 93 89
EBITDA EUR million 96.3 272.6 314.2 115 326
EBITDA / (Gross profit with DFI) % 23.7 38.3 41.9 109 177
Operating costs / (Gross profit with DFI) % 115.1 78.8 73.6 93 64
Net debt / Equity 0.6 0.5 0.4 87 73
Net debt / EBITDA 5.4 1.7 1.4 80 25
Return on equity (ROE) % -0.3 15.3 15.4 100 -
Return on net assets (RONA) % -0.2 11.1 12.0 108 -
Return on capital employed (ROCE) % -0.5 12.0 14.1 118 -
Added value per employee EUR thousand 41.3 76.7 86.8 113 210
Earnings per share attributable to owners of the controlling company EUR 0.1 3.3 3.4 102 3,062
Share price as at last trading day of the year EUR 20.0 23.3 31.5 135 158
Volume of fuels and petroleum products sold thousand tons 4,095.2 3,778.4 3,867.3 102 94
Volume of natural gas sold TWh 18.9 16.6 20.7 124 109
Volume of electricity sold TWh 13.9 12.8 11.3 88 81
Revenue from the sales of merchandise and services EUR million 520.1 571.2 636.3 111 122

5. Alternative performance measures

To present its business performance, the Petrol Group also uses alternative performance measures (APMs) as defined by ESMA (The European Securities and Market Authority). The APMs we have chosen provide additional information about the Petrol Group's performance.

List of alternative performance measures

Alternative performance measures Calculation information Reasons for choosing the measure
Gross profit Gross profit = Revenue from the sale of merchandise and services – Cost of goods sold The Petrol Group has no direct influence over global energy prices, which makes the gross profit more appropriate to monitor business performance.
Gross profit with DFI Gross profit + Closed Net Derivative Financial Instruments for Commodities Closed Net derivative financial instruments for commodities are intended for hedging price and volumetric risks and, hence, the amount of sales revenue and the cost of goods sold. In terms of comparison with the previous period, the ratio is more appropriate than merely the gross profit.
EBITDA EBITDA = Operating profit + Net impairment losses on financial and contract assets + Depreciation and amortisation charge. EBITDA indicates business performance and is the primary source for ensuring returns to shareholders.
EBITDA / (Gross profit with DFI) EBITDA / (Gross profit + Closed Net Derivative Financial Instruments for Commodities) The share of EBITDA in the gross profit, increased by the closed net derivative financial instruments for commodities is a good approximation to the share of free cash flow in the gross profit, increased by the net derivatives and ensures better comparability to the previous period and the plan.
Operating costs Operating costs = Costs of materials + Costs of services + Labour costs + Depreciation and amortisation + Other costs The criterion is important in terms of the cost-effectiveness of operations.
Operating costs / (Gross profit with DFI) Operating costs / (Gross profit + Closed Net Derivative Financial Instruments for Commodities) The ratio is relevant in terms of the operational cost efficiency and ensures better comparability to the previous period and the plan.
Net debt/Equity Net debt = Current and non-current financial liabilities + Current and non-current lease liabilities – Cash and cash equivalents; Ratio = Net debt/Equity The ratio reflects the relation between debt and equity and is, as such, relevant for monitoring the Company's capital adequacy.
Net debt/EBITDA Ratio = Net debt/EBITDA The ratio expresses the Petrol Group’s ability to settle its financial obligations, indicating in how many years financial debt can be settled using existing liquidity and cash flows from operating activities.
Return on equity (ROE) ROE = Net profit/Average equity The ratio indicates the Petrol Group's efficiency to generate net profit relative to equity. Return on equity also reflects management's performance in increasing the value of the Company for its owners.
Return on net assets (RONA) RONA = net profit / (average non-current assets - (average current assets – average current liabilities)) The ratio shows how efficient the Petrol Group is in using assets to generate net profit.
Return on capital employed (ROCE) ROCE = Operating profit / (Total assets – Current liabilities)

The ratio shows how efficient the Petrol Group is in generating profits from its long-term sources of finance.

Added value/Employee

Added value per employee = (EBITDA + Integral labour costs)/Average number of employees. Integral labour costs = Labour costs relating to Petrol Group employees + Labour costs relating to third-party managed service stations, which stood at EUR 22.5 million in 2024 and EUR 28.6 million in 2023. This productivity ratio indicates average newly created value per Petrol Group employee.

Working capital

Working capital = Operating receivables + Contract assets + Inventories – Current operating liabilities – Contract liabilities. The ratio reflects operational liquidity of the Petrol Group.

Net investments

Net investments = Investments in fixed assets (EUR 67.4 million in 2024) + Non-current investments (EUR 2.0 million in 2024) - Disposal of fixed assets and reimbursements (EUR 9.2 million in 2024). The information about investments reflects the direction of the Petrol Group's development.

Book value per share

Book value per share = equity/total number of issued shares. Book value per share reflects the value of a public limited company's total equity per share.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024

6. Significant events and achievements in 2024

  • Official opening of the Barje North and South service stations, which have been renovated in accordance with state-of-the-art, energy efficient and environment-friendly guidelines (January 2024).
  • Received the prestigious awards Voted Product of the Year 2024 for Coffee to Go, freshly prepared food Fresh and mobile app Petrol GO and Voted Brand of the Year 2024 for Q Max fuel (March 2024).
  • Signed the Ljubljana Climate-Neutral Commitment by 2030 – a commitment to an active cooperation in the achievement of ambitious climate objectives in the context of the EU Mission of 100 climate-neutral and smart cities (March 2024).
  • Signed the consortium agreement for the establishment of hydrogen ecosystem; the consortium brings together more than 6500 experts and represents the strongest partnership of its kind in Slovenia (March 2024).
  • Cooperated, through financial support, in the opening of a new, 29th station in the Mbajk bike sharing system in Lent, Maribor.
  • Received a special award for being ranked one of the top 10 most distinguished employers in Slovenia, received the title of the most distinguished employer in the energy industry, received a special award for efficient employment in the context of the finalists of the HR team of 2024 selection, the category of large enterprises (April 2024).
  • Opening of the service station on Dunajska 70 in Ljubljana following a thorough renovation; the service station has a new visual image and concept which reflects Petrol’s vision of a service station of the future (April 2024).
  • Received the Top Motivator for Employees 2023 award; in addition to Petrol d.d., Ljubljana, the award which emphasizes the commitment of the company to employee remuneration and motivation was also received by Petrol d.o.o. (Zagreb); (April 2024).

  • Completed renovation of the Petrovaradin service station in Serbia (April 2024).
  • Received the DIGGIT Gold Award in the category of design and customer experience, for the Petrol GO mobile app (May 2024).
  • As part of the European CROSS-E cross-border electric charging project, the Petrol Group, Allego, Emobility Solutions and GreenWay were selected for the installation of high-powered charging points across Europe (May 2024).
  • Successfully completed renovation of the Ljubljana Črnuče–Štajerska service station (May 2024).
  • First test charging of two electric buses of the Ljubljana Passenger Transport (LPP) at the Barje North service station (May 2024).
  • Received the grand award for Marketing Excellence 2024 in all categories (May 2024).
  • At the 38th General Meeting of shareholders of Petrol d.d., Ljubljana, which was held on 23 May 2024, a resolution was passed that dividend for 2023 would amount to EUR 1.8 per share.
  • In May 2024, Petrol d.d., Ljubljana became a 100 percent owner of Petrol Power d.o.o.
  • Extended the offer of high-quality and greener fuels HVO3 for business clients and CNG (compressed natural gas) at the Barje service stations; Petrol is currently the only supplier of HVO in Slovenia (June 2024).
  • In the field of cybersecurity, we received the highest rating, A, based on the cybersecurity rating conducted by Security Scorecard (June 2024).
  • In July 2024, the European Bank for Reconstruction and Development (EBRD) approved a EUR 9.5 million senior unsecured loan to Petrol d.d., Ljubljana to support the ambitious programme of installing recharging points for light and heavy-duty electric vehicles in Slovenia and Croatia in the context of the European cross-border electric charging project, CROSS-E.
  • In July 2024, EKOEN d.o.o. and EKOEN S d.o.o. were merged into Petrol d.d., Ljubljana.
  • In July 2024, Vjetroelektrana Ljubač d.o.o. was merged into Vjetroelektrane Glunča d.o.o.
  • Completed soft rebranding of Crodux Zadar Gaženica service station in Croatia (July 2024).
  • Renovated visual identity of the newly leased Split Zagorski put service station in Croatia (July 2024).
  • Completed reconstruction of the Podgorica Mitra Bakića service station in Montenegro (July 2024).
  • Completed reconstruction of the exterior and interior and the surrounding area of the Ajdovščina Goriška service station (August 2024).
  • Completed reconstruction of the Žerjav, Nazarje and Otiški Vrh service stations, which were affected the most during last year's devastating flooding (August 2024).
  • Conclusion of the two-year-long European CyberSEAS project to improve cybersecurity of energy systems (September 2024).
  • Petrol GO mobile app received the WEBSI 2024 title in the Mobile Apps category, ranking it one of the best digital projects in Slovenia (September 2024).
  • Merger of Tigar Petrol d.o.o. into Petrol LPG d.o.o. (September 2024).

  • Signature of a five-year power purchase agreement with the Swiss producer and trader Axpo, which will enable Petrol to provide a reliable supply of power to final customers between 2026 and 2030 (October 2024).
  • Completed renovation of the Varaždin Gospodarska service station in Croatia (October 2024).
  • Second step of the contract to exchange interests in Plinhold d.o.o. and Geoplin d.o.o. Ljubljana, according to which the company Petrol d.d., Ljubljana, holds a 99.35 percent interest (99.55 percent of voting rights) in Geoplin d.o.o. Ljubljana and a 12.72 percent interest in Plinhold d.o.o., and the Petrol Group a 12.91 percent interest (November 2024).
  • Closing meeting of the MULTI-E project partners upon the successful completion of a multi-year project to promote sustainable mobility in Slovenia, Croatia and Slovakia (November 2024).
  • Opening of the new Inđija Vojvode Putnika service station in Serbia, with state-of-the-art design standards, cutting-edge technology and innovative solutions (December 2024).
  • Completion of a thorough renovation of the Štaloni and Lipica service stations (December 2024).

7. The Petrol Group in the region

The Petrol Group has companies in the following countries:

  • Slovenia
  • Croatia
  • Bosnia and Herzegovina
  • Serbia
  • Montenegro
  • Kosovo
  • North Macedonia
  • Austria
  • Romania

In addition, the Petrol Group carries out business activities and closely monitors business opportunities in other countries, which requires an in-depth understanding of local regulatory and market circumstances. Members of the Management Board and Supervisory Board regularly participate in analysing these factors, which enables Petrol to effectively adjust its business strategies.

4

4

GOV-1, paragraph 21 c – Experience in relation to the Company's sectors, products and geographical locations.

2. INTEGRATED BUSINESS REPORT

A. BUSINESS REPORT

  1. Strategic orientation………………………………………………………………………. 20
  2. Plans for 2025………………………………………………………….………………….. 25
  3. Corporate Governance Statement ……………………………………………………….26
  4. Performance analysis of the Petrol Group 2024………………………………………..48
  5. Events after the end of the accounting period………………………………………….. 65
  6. Share and ownership structure…………………………………………………………... 66
  7. Risk and opportunity management……………………………………………………… 71
  8. Operations by product groups………………………..………………………………….. 77
  9. Customers – the centre of our attention…………………………………..……………. 98
  10. Quality control ……………………………………………………………………………. 104
  11. Investments ………………………………………………………………………………. 107
  12. Information technology……………………………………………….…………….…… 110
  13. Corporate Social Responsibility …………………………………….……………….…. 113
  14. Internal audit ………………………………………………………….………………….. 116
  15. Companies in the Petrol Group …………………………………….………………….. 118

1. Strategic orientation

1.1 Our mission, promise, vision and values

Mission

Through a broad range of energy commodities, comprehensive energy solutions and a digital approach, we are putting the user at the centre of our attention. We want to become the first choice for shopping on the go. Together with our partners, we create solutions for a simpler transition to cleaner energy sources. We are building a green energy future in a decisive and active manner, increasing the value for our customers, shareholders and society in the long run.

Promise

Through the energy transition, we create a green future and make a significant contribution to protecting our environment.

Vision

To become an integrated partner in the energy transition, offering an excellent customer experience.

Values

  • Respect: We respect fellow human beings and the environment.
  • Trust: We build partnerships through fairness.
  • Excellence: We want to be the best at all we do.
  • Creativity: We use our own ideas to make progress.
  • Courage: We work with enthusiasm and heart.

At Petrol, we feel a strong sense of responsibility towards our employees, customers, suppliers, business partners, shareholders and society as a whole. We meet their expectations with the help of motivated and business-oriented staff, we adhere to the fundamental legal and moral standards in all the markets where we operate, and we protect the environment.

1.2 Strategy of the Petrol Group for the 2021–2025 period

On 28 January 2021, the Supervisory Board of Petrol d.d., Ljubljana endorsed the Strategy of the Petrol Group for the 2021–2025 period, which defines the path to a successful future through a vision, objectives and strategic business plan. Ensuring business growth and increasing the profitability of operations while staying committed to sustainable development are the main principles underpinning the preparation and implementation of the strategic plan.

The environment in which the Petrol Group operates is facing important changes. The low-carbon energy transition and the development of new technologies are transforming the established ways energy commodities are produced, sold and used. Petrol is committed to making a transition to green energy and is dedicating a significant share of its investments to achieve it. The strategy of the Petrol Group defines clear targets for implementing our vision.

While co-creating opportunities brought about by the energy transition, we will also continue to supply the market with hydrocarbons. This helps us focus on our principal activity, which is to supply energy commodities, as it is this area where we still see great potential in connection with the energy transformation.

We will continue to strengthen our sales network in the region. Thanks to new digital channels, a broader range of energy commodities and a personalised offer, we are following trends, getting closer to our customers, and helping them make a transition from traditional energy sources to cleaner renewable energy. Our aim is to become a key link in a broader ecosystem by offering energy sources that are adapted to and co-shape the market.

For this reason, we strengthen operational efficiency to free up additional funds for investments in renewable energy production.

We understand the importance of sustainable development. The low-carbon energy transition, partnership with employees and the social environment, and the circular economy constitute the Petrol Group’s commitments in this strategic period. As a partner to industry, the public sector and households, Petrol is taking a leading role in achieving environmental goals.

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Through the continuous development of fuels, we will actively contribute to reducing emissions. At the same time, we will help reduce the carbon footprint of both the Petrol Group and our customers by pursuing clear sustainable policies. We want to become the first choice for shopping on the go in our traditional segment of oil products and merchandise and services.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

In this strategic period, we will remain present in all markets, focusing on:

  • Slovenia, where we will consolidate our position as a leading energy company and partner in the energy transition;
  • Croatia, where we will use our sales network to expand our portfolio of customers in the field of energy commodities and energy transition services and invest in renewable electricity generation;
  • Serbia, where we will increase our share in the energy commodities sales market.

We strive to remain the first choice for energy transition projects in the region by offering integrated services with high added value. We develop and strengthen our presence in the supply and sale of natural gas and electricity, in the sale of liquefied petroleum gas and in energy efficiency projects. Renewable electricity generation, of which we position ourselves to become a major supplier in SE Europe, plays a particular role in the energy transition.

The development of new solutions in the field of e-mobility and mobility services shows a great potential for development. In doing so, the Petrol Group focuses on charging infrastructure (the establishment, management and maintenance of charging infrastructure for electric vehicles and the provision of charging services) and mobility services (e.g. operating leasing, fleet electrification and fleet management services).

By pursuing the goals, we strengthen the long-term financial stability of the Petrol Group. Through a stable dividend policy, we ensure a balanced dividend yield for shareholders and the use of free cash flows to finance the Petrol Group’s investment plans. This will allow for the long-term growth and development of the Group, maximizing its value for the owners. The dividend policy target for the 2021-2025 strategic period is 50 percent of the Group’s net profit, taking into account the investment cycle, Group indicators and the achieved objectives.

The turbulence in the energy markets, high inflation and the resulting regulatory intervention by governments in the pricing of energy commodities have severely impacted the Petrol Group’s business. The regulated prices for petroleum products were not high enough to cover all costs in a certain period. In 2022 and 2023, we also had to adapt, or limit, our investment funds to the changed business environment, all the while still aiming to earmark as much of investments as possible for the energy transition.

In 2025, in line with current trends and developments in the energy markets, the Petrol Group is preparing a roadmap for the Group’s strategic development until 2030.

1.3 Business model of the Petrol Group

The Petrol Group is formed of the parent company Petrol d.d., Ljubljana, and subsidiaries, jointly controlled entities, and associates in Central and South-Eastern European countries. The core activities of the Group companies are dominated by the sale of fuels and petroleum products, other energy commodities, merchandise and services.

Petrol's core development activity is focused on achieving objectives related to efficient energy use, which includes consulting on energy solutions and the generation of electricity from renewable sources (for more information about the sale of individual products, refer to Section 8: Business by product group). The Petrol Group companies are present in nine European countries (for more information, refer to Introduction - Section 7: The Petrol Group in the region).

To support the implementation of the Petrol Group Strategy for the 2021–2025 period, we have embarked on the development of an advanced operational model that will be agile and lean and will enable the development of capabilities in our key areas of operation.

The advanced operating model introduces four key changes to the organisation:

  • division of sales and product management – with sales focused on the customer, who is placed at the centre of operations, and product management focused on an excellent user experience and ensuring product profitability.
  • a process organisation with an emphasis on strengthening cooperation, lean and agile processes and on clearly defined powers and responsibilities.
  • unified or centralized common functions – with responsibility for high-quality and efficient internal services.
  • strengthening cooperation between companies – and managing subsidiaries through an umbrella organisation.

Through activities related to the unification and integration of common functions, synergies are sought and productivity increased. Great emphasis is placed on the digitisation and automation of processes, which allows us to operate even more actively in the market, provide better support to partners, and offer a wider range of services and products.

The Petrol Group's business model also depends on intangible assets, both those that are recognised in the Petrol Group's financial statements (right-of-use of the concession infrastructure, emission allowances, software, patents and licenses, goodwill), and those that are not recognised in the financial statements:

  • know-how of employees,
  • organisational culture,
  • business relationships and agreements,
  • databases,
  • brand strength and image.

All of the above categories are of key importance to the performance and competitiveness of the Petrol Group, making a strategic approach to managing significant risks and opportunities necessary. Actions related to the workforce, consumers and databases are presented in more detail in the Sustainability Report of this report and in the section entitled Customers – the focus of our attention.

1.4 Petrol as the ambassador of corporate integrity

At Petrol, our objectives are achieved while respecting applicable regulations and corporate integrity guidelines. Ethics and integrity are important principles that have been promoted at Petrol for several years as companions to every business decision. At work, high standards of business ethics are adhered to and an organisational culture promoting legal, transparent and ethical conduct and decision-making by all employees is built. Awareness of the importance of business compliance is spread and strengthened among employees and business partners, informing them of Petrol's values and business principles, and of the rules for preventing corruption and all unethical conduct.

Our activities are carried out by selecting business partners who meet ethical standards and conditions and criteria according to Petrol's business partner verification process which is carried out before the start of cooperation and also periodically during the cooperation itself. Through internal communication channels, the level of awareness of the importance of corporate integrity and its consequences for Petrol's operations is raised, with the aim of thereby contributing to raising awareness and expanding good practices in the broader social sphere.

Internal awareness systems are being introduced in order to get as close as possible to each individual in their actions, both at the level of daily routines and when making every business decision. The Corporate Integrity Officer and the Whistleblower Protection Officer encourage and assist employees with issues related to decisions about the correctness of conduct. Reporting of all detected irregularities is encouraged. These are investigated and minimisation actions are introduced. The principle of zero tolerance towards illegal and unethical conduct by employees and business partners is enforced.

Communicating and living the values that accompany work at Petrol begins with the personal culture of each individual. It is important that people resonate with them and consider them their own, which makes it easier to live in compliance therewith. Therefore, we constantly strive for our employees to use them as their baseline in their thoughts and personal lifestyle. In doing so, we strive for an appropriate balance between Petrol's collectively formed values and the values we hold as individuals, allowing us to direct the business system towards a culture of corporate integrity.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

2. Plans for 2025

2.1 Business environment

The year 2025 will be marked by the continued instability on global energy markets driven by geopolitical tensions, inflation and the energy price regulation. In Slovenia, Petrol Group’s major market, especially, the low petroleum product margins and the tight regulation continue exerting pressure on the operations. Although the projections point to gradual energy price stabilisation, regulatory requirements and costs related to the green transition, such as an increased share of biofuels and the environmental legislation, will remain a challenge.

The Petrol Group will tailor its activity to such conditions through further process optimisation and cost efficiency. The aim is to ensure a long-term business stability and performance, including through additional investments in digitalisation and measures to improve operational efficiency. At the same time, the Petrol Group will pay special attention to managing risks and improving the capital structure in the volatile environment. This way, the Petrol Group will address the key challenges and continue adapting to changes on energy markets.

Energy source stability in connection with the energy transition will remain vital for a successful long-term performance. In addition to modernising service stations and introducing new contents for improving the customer experience, we are intensively developing projects in the field of renewables, such as solar power plants and wind power plants. Also, we are expanding the network of electric charging stations and the range of energy solutions for individuals and companies. By efficiently using energy commodities and supporting the green transition, Petrol provides its customers with a sustainable future.

The Petrol Group will keep its strong role in the field of fuel and petroleum product sales which, together with merchandise sales, are the foundation of its financial stability. At the same time, it will continue making investments in supply chain optimisation, business process digitalisation and modernisation and in ensuring best services for users. Our ambition to grow encompasses increasing the number of service stations in the region, while maintaining the leading position in the segment of traditional service stations and EV-charging points.

2.2 Planned financial statements for 2025

For 2025, the Petrol Group plans to generate sales revenue of EUR 6.1 billion. Gross profit will amount to EUR 789 million, EBITDA to EUR 339 million, net profit to EUR 177.8 million and the net debt-to-EBITDA will be 1.2.

Return on equity (ROE) will be 17.3 percent, return on net assets (RONA) 14.5 percent and return on capital employed (ROCE) 15.3 percent.

Constant changes in environmental policies, geostrategic movements, risk of reduced economic growth force Petrol to lead a prudent long-term risk management policy.

The Petrol Group will achieve the results planned for 2025 by selling 4.0 million tons of fuels and petroleum products, and merchandise in the amount of EUR 702.8 million. In 2025, the Petrol Group will sell 8.5 TWh of natural gas and 3.3 TWh of electricity to final customers.

Net CapEx is planned in the amount of EUR 150 million, of which more than a half will be earmarked.

for energy transition projects, including investments in renewables, digitalisation and expansion of the range of products and services in mobility.

3. Corporate Governance Statement

Petrol d.d., Ljubljana, submits a statement on corporate governance in compliance with the provisions of paragraph five of Article 70 of the Companies Act (ZGD-1).

3.1 Reference to the applicable Corporate Governance Code

The Slovenian Corporate Governance Code for Listed Companies (the Code) was applicable to the Company with regard to the period from 1 January 2024 to 31 December 2024, as drafted on 27 October 2016 and amended and adopted on 9 December 2021 by the Ljubljana Stock Exchange, d.d., Ljubljana, and the Slovenian Directors’ Association. The updated version entered into force on 1 January 2022. The Code is available on the Ljubljana Stock Exchange website (https://ljse.si/en) in Slovenian and English. The Company has not adopted its own governance code. Governance is carried out in compliance with the provisions of ZGD-1 and within the framework of the above-mentioned Code. In compliance with the recommendations of the currently applicable Code, the Supervisory Board and the Management Board developed and adopted the Governance Policy of Petrol d.d., Ljubljana at the Supervisory Board meeting on 23 November 2010, which was published on 28 December 2010 in the SEOnet stock exchange information system of the Ljubljana Stock Exchange. The policy has since been updated several times at meetings of the Company's Supervisory Board and published on SEOnet. The latest version in force is available at the following link Governance Policy 17 February 2022. It is also available in Slovenian and English on the Company's website (www.petrol.eu, www.petrol.si).

Statement of compliance with the provisions of the Code

In its operations, the Company complies with the above-mentioned Code, both the guiding principles and the recommendations. Deviations that the Company does not take into account or does not take into account in full, and the reasons for these deviations, are listed or explained below:

  • The Company is yet to conduct an external assessment of the adequacy of the governance statement and is expected to do so in 2025 (Code: Governance Statement, point 5.6).
  • Sustainable development is a strategic priority of the Petrol Group, which has been included in its business reporting and policies for more than a decade. The Petrol Group has been compiling biennial sustainability reports since 2012, which will, henceforth, in compliance with the CSRD and ESRS requirements, form part of the integrated annual business report. The Company does not compile a single document that would comprehensively regulate sustainable operations, but the key contents are divided into several interconnected internal acts, which together address all the requirements of point 7 of the Corporate Governance Code. Going forward, sustainable practices will be strengthened further throughout the value chain and existing due diligence processes pertaining to human rights, environmental responsibility, labour rights, tax responsibility, and anti-corruption, built on. The Double Materiality Assessment (DMA), carried out in accordance with the ESRS/CSRD, already constitutes an important foundation for future improvements in the management of these risks. The existing sustainable operation framework will be gradually adapted to new strategic directions, with sustainability-related strategic guidelines being included in the Company's new business strategy and consequently gradually reflected in policies and other sustainability-related internal acts. On this basis, the possibilities for further codification of sustainability policies will be examined further, all in compliance with the development of statutory requirements and best practices (Code: Sustainable Operations, point 7).
  • In its rules of procedure, the Supervisory Board determines the content and types of transactions for which the Supervisory Board's consent is required but does not determine the exact set of content and deadlines that the Management Board takes into account when providing regular information, as the content is already foreseen in the Company's annual financial calendar. Instead of specifying it in the rules of procedure, the Supervisory Board, in addition to the financial calendar, which is published on SEOnet, also adopts an expanded version of the financial calendar, which contains all additional content and deadlines for the Supervisory Board and committees and constitutes a coordinated whole of the work plan of this body (Code: Duties of the Supervisory Board, first sentence of point 14.3).
  • The Human Resources and Management Board Evaluation Committee performs all tasks in compliance with the respective decisions of the Supervisory Board, therefore the

Supervisory Board did not specifically determine its tasks when developing it (Code: of the Supervisory Board Committees, first sentence of point 18.2).

The Company regularly reports on its financial and legal position through public communications, but does not report on operational assessments, as this is not meaningful if operations are in line with the applicable strategy and annual work plan. In the event of deviations, the Company would immediately make a public announcement to inform interested stakeholders about other business events, impacts and deviations (Code: Public Disclosure of Important Information, third indent of point 32.1).

The Company does not publish the currently valid texts of the rules of procedure of its bodies on its website. The Management Board and the Supervisory Board have discussed the appropriateness of this recommendation and assess that both the Rules of Procedure of the Supervisory Board and the Rules of Procedure of the Management Board, which are regularly updated, are documents intended exclusively for the work of these bodies. Any external assessment of the suitability of these documents by third parties would be inappropriate due to a lack of knowledge of the needs of these bodies. The Rules of Procedure for the General Meeting were adopted in 1997 at the first session of the General Meeting of the listed company Petrol d.d., Ljubljana, and are always available at the General Meeting and do not conflict with the provisions of the ZGD-1. The ZGD-1 defines all segments of the implementation of the General Meeting of a company with mandatory provisions, rendering it sufficient that the rules of procedure are only available at each general meeting session (Code: Public Disclosure of Important Information, third indent of point 32.7).

3.2 Description of the main features of the internal control and risk management systems in the Company related to the financial reporting process

The Management Board of the Company is responsible for keeping adequate accounts, for establishing and ensuring the functioning of internal controls and internal accounting controls, the selection and application of accounting policies and the protection of the Company’s property. Setting up a system of internal controls based on the principle of three lines of defence has three main objectives:

  • accuracy, reliability and completeness of accounting records and truth and fairness in financial reporting,
  • compliance with legislation and other regulations,
  • the efficiency and effectiveness of operations.

The Company's Management Board strives for a system of controls that is, on the one hand, effective in limiting the occurrence of negative events, and on the other hand, cost-effective. It is aware that every system of internal controls – irrespective of its effectiveness – has its limitations and cannot completely prevent errors or fraud. However, it must be configured so that it flags them as soon as possible and provides the Management Board with suitable assurance about the achievement of objectives.

To this end, the Petrol Group maintains and improves:

  • a transparent organizational chart of the parent company and the Group,
  • clear and uniform accounting policies and their consistent application throughout the Petrol Group,
  • effective organisation of the accounting function (functional responsibility) within individual companies and the Petrol Group,
  • a uniform accounting and business information system in the parent company and subsidiaries, which increases the efficiency of operational and control procedures,
  • reporting in compliance with International Financial Reporting Standards, including all required disclosures and notes,
  • regular internal and external audits of business processes and operations.

Section 7. Risk management and opportunities of this business report contains a detailed presentation of risk management and control mechanisms in connection with the assessment of each type of risk. The current system of internal controls is believed to have operated effectively and provided an appropriate environment for achieving business goals in Petrol d.d., Ljubljana, and the Petrol Group in 2024, ensured operations in accordance with legal provisions, and enabled fair and transparent reporting in all material respects.

Three control defence lines: (1) operational management or risk owners, (2) supervisory functions, including compliance, as risk managers, (3) internal audit with the function of providing independent assurance.

3.3 Data pursuant to paragraph 8 of Article 70 of the ZGD-1

Petrol d.d., Ljubljana, as a company that is obliged to apply the law governing takeovers, in compliance with the provisions of the sixth paragraph of Article 70 of the ZGD-1, provides data on the situation as of the last day of the financial year and all the required notes:

3.3.1 Structure of the Company's share capital

All shares of the Company are ordinary registered no-par value shares, which give their holders the right to participate in the governance of the Company, the right to a share of the profit (dividends) and the right to an appropriate share of the remaining assets after the liquidation or bankruptcy of the Company. All shares are shares of one class and are issued in dematerialized form.

Structure of the share capital of Petrol d.d., Ljubljana, 31 December 2024

Largest shareholders of Petrol d.d., Ljubljana, 31 December 2024

Shareholder Address Number of shares Holding in %
J\&T BANKA A.S. - FIDUCIARNI RAČUN Sokolovská 700/113A, 18600 Praha, Czechia 5,333,200 12.78%
SDH, D.D. Mala ulica 5, 1000 Ljubljana 5,299,220 12.70%
REPUBLIKA SLOVENIJA Gregorčičeva ulica 20, 1000 Ljubljana 4,514,005 10.82%
KAPITALSKA DRUŽBA, D.D. Dunajska cesta 119, 1000 Ljubljana 3,452,780 8.27%
OTP BANKA D.D. - FIDUCIARNI RAČUN Domovinskog rata 61, 21000 Split, Croatia 3,124,081 7.49%
ERSTE GROUP BANK AG - FIDUCIARNI RAČUN Am Belvedere 1, 1100 Wien, Austria 1,805,396 4.33%
VIZIJA HOLDING, D.O.O. Dunajska cesta 156, 1000 Ljubljana 1,582,480 3.79%
VIZIJA HOLDING ENA, D.O.O. Dunajska cesta 156, 1000 Ljubljana 1,350,700 3.24%
MUSTAND ENERGY LIMITED Klimentos 41-43, Klimentos, Tower, Nicosia, Cyprus 846,259 2.03%
PERSPEKTIVA FT D.O.O. Dunajska cesta 156, 1000 Ljubljana 725,240 1.74%

3.3.2 Restrictions on the transfer of shares

All shares of the company are freely transferable.

3.3.3 Qualifying holdings under ZPre-1

On 31 December 2024, based on the first paragraph of Article 77 of the Takeover Act (regarding the achievement of a qualifying holding), the situation is as follows:

  • J&T BANKA A.S. – fiduciary account, holder of 5,333,200 shares of the issuer Petrol d.d., Ljubljana, which accounts for 12.78 percent of the issuer's share capital;
  • Slovenski državni holding, d.d. (SDH, d.d.), holder of 5,299,220 shares of the issuer Petrol d.d., Ljubljana, which accounts for 12.70 percent of the issuer's share capital;
  • The Republic of Slovenia, holder of 4,514,005 shares of the issuer Petrol d.d., Ljubljana, which accounts for 10.82 percent of the issuer's share capital;
  • Kapitalska družba, d.d., holder of 3,452,780 shares of the issuer Petrol d.d., Ljubljana, which accounts for 8.27 percent of the issuer's share capital;
  • OTP banka d.d. – fiduciary account, holder of 3,124,081 shares of the issuer Petrol d.d., Ljubljana, which accounts for 7.49 percent of the issuer's share capital.

3.3.4 Holders of securities providing special control rights

The Company has not issued any securities that would provide special control rights.

3.3.5 Employee share scheme

The Company does not have an employee share scheme.

3.3.6 Restriction of voting rights

There are no restrictions on voting rights.

3.3.7 Agreements between shareholders that may result in a restriction on the transfer of shares or voting rights

The Company is not aware of any such agreements.

3.3.8 Company rules

on the appointment and replacement of members of management or supervisory bodies

The President of the Management Board and other members of the Management Board are appointed and dismissed by the Supervisory Board. Other members of the Management Board, except for the Worker Director, are appointed by the Supervisory Board on a proposal of the President of the Management Board. Members of the Management Board are appointed for a five-year term of office and can be re-appointed. Subject to its rules of procedure, on the proposal of the Human Resources and Management Board Evaluation Committee, the Supervisory Board lays down general and

special criteria to be used for selecting candidates for the President and Members of the Management Board, and at the same time lays down the framework for concluding contracts with Members of the Management Board. The Supervisory Board also determines the weightings of individual criteria that make up the competency model of the President and Members of the Management Board. The Human Resources and Management Board Evaluation Committee proposes to the Supervisory Board how to recruit candidates for the President of the Management Board (personal invitations, an open competition or a combination thereof) and assesses the need to collaborate with an external HR recruitment and selection expert. The Committee carefully verifies compliance with the general and special conditions for performing the function of President or Member of the Management Board in the Company, including the conditions set out in the Company's Articles of Association. It also checks the candidates' references on their CVs and conducts interviews with them. After reviewing the candidates, the Committee makes a list of candidates for the position of President of the Management Board, conducts selection interviews with them, and performs a ranking. The short-listed candidates propose other members of the Management Board, and the Committee reviews the conditions and references of the proposed candidates. The Committee also assesses the composition of the entire Management Board and conducts negotiations with the candidates on the basic elements of their contract. The candidate or candidates for the President of the Management Board, together with the proposed Members of the Management Board, present their development vision for the Company at a Supervisory Board meeting. The Supervisory Board conducts selection interviews with them, then selects and appoints the President of the Management Board and Members of the Management Board. If the Supervisory Board determines that the proposed composition of the Management Board is inappropriate, the procedure will be repeated. If the term of office of the President of the Management Board terminates early on any ground, the Supervisory Board, taking into account the interests of the Company, may either carry out the appointment procedure for a new President of the Management Board or, from among the remaining members of the Management Board who meet the determined conditions, appoint a new President of the Management, who will perform the duties of the President of the Management Board until the end of the term for which he/she was appointed as a Member of the Management Board.

The Supervisory Board may re-appoint the Management Board within one year before the end of its term of office and, as a rule, no later than three months before the end of its term of office. If the General Meeting of the Company passes a vote of no confidence for the Management Board, the Supervisory Board must decide immediately after the General Meeting on the dismissal of any individual member of the Management Board. If the General Meeting of the Company does not grant discharge to the Management Board and/or Supervisory Board, the Supervisory Board must meet as soon as possible and determine the grounds for the non-granting of discharge. Notwithstanding the above, the Supervisory Board may, at its discretion, dismiss the Management Board for reasons defined by the law. The Supervisory Board is obliged to immediately inform the Management Board, which is inadequately performing the tasks within its competence, of its findings and opinions and to set the shortest possible deadline for remedying the identified deficiencies. If the Management Board does not achieve the expected results within a certain period, the Supervisory Board decides to recall the Members of the Management Board. The Supervisory Board may appoint one of its members as a temporary member of the Management Board, replacing a missing or absent member of the Management Board, for a maximum period of one year. Re-appointment or extension of the term of office is permissible, provided that the total term of office does not exceed one year.

The Supervisory Board of the Company consists of nine members, six of whom are elected at a General Meeting of Shareholders of the Company by a majority of the votes of the shareholders present, and three by the Workers’ Council of the Company. The members of the Supervisory Board are elected for a four-year term and can be re-elected after the end of their term. The decision on the early recall of members of the Supervisory Board, representatives of shareholders, must be adopted by a three-quarter majority of the votes present at the General Assembly, and the terms of recall of members of the Supervisory Board, representatives of workers, are laid down by the Workers’ Council in its act of general application.

About amendments to the Articles of Association

The General Meeting takes its decision on amendments to the Articles of Association by a three-quarter majority of its members of the represented share capital.

3.3.9 Powers of management members, in particular regarding own treasury shares

At its 34th meeting, held on 21 April 2022, the General Meeting of Shareholders, by a resolution under point 7, authorised the Management Board to purchase its own shares within a period of 12 months from the date of entry into force of the decision. The authorisation was valid for the acquisition of a maximum number of shares such that the total share of shares acquired on the basis of this authorisation, together with other treasury shares already owned by the

Company on the date of acceptance of this authorisation, would not exceed two percent of the Company's share capital. The Company may acquire its treasury shares through transactions concluded on an organised securities market, at the respective market price. They can also be acquired outside the organised securities market. When acquiring shares on an organised or OTC securities market, the purchase price of the shares may not be lower than 50 percent of the book value of the share, calculated based on the latest publicly published audited annual profit or loss of the Petrol Group, nor may it be higher than 11 times the net earnings per share (EPS), calculated based on the latest publicly published audited annual profit or loss of the Petrol Group. In accordance with the third and fourth paragraphs of Article 381 of the ZGD-1, the Company may reduce its share capital (once or successively) by withdrawing its own shares acquired on the basis of this authorisation (but not previously acquired own shares), following a simplified procedure and debiting other profit reserves with the consent of the Supervisory Board. The Company may use its own shares acquired on the basis of this authorisation only in accordance with this decision. During the period of the authorization to acquire treasury shares based on decision number 7.1., adopted at the 34th General Meeting of Shareholders, Petrol d.d., Ljubljana, did not acquire its own shares, which the Company reported on at the 38th General Meeting of Shareholders of the Company.

3.3.10 Significant agreements that become effective, are amended or terminated based on a change in control of the company resulting from a public takeover bid

The Company is not aware of any such agreements.

3.3.11 Agreements between the Company and members of its management or supervisory body or employees that provide for compensation if they resign, are dismissed without just cause, or their employment relationship is terminated due to a bid as defined by the law governing takeovers

A member of the Management Board is not entitled to severance pay due to early termination of his/her term of office in cases specified by the law governing companies. A member of the Management Board is not entitled to severance pay in the event of a regular expiration of their term of office. In addition, a member of the Management Board is not entitled to severance pay if he/she terminates the employment agreement himself/herself or if the employment agreement is terminated early on grounds such as serious breach of obligations, lack of operational capability, or a vote of no confidence in him/her by the General Meeting (unless the vote of no confidence was carried for clearly unfounded reasons). If there are no grounds of fault for his/her recall, an agreement on early termination of the term in office may be concluded at the initiative of one or the other party, if this is in the interest of both parties, for example when a member of the Management Board does not achieve optimal operational capability results, does not have optimal organisational skills, or there is no necessary trust between the Member of the Management Board and the Supervisory Board. The expected benefits for the Company must be higher than the amount of severance pay and any other expenses that must be paid upon conclusion of the agreement.

3.3.12 In compliance with indent four of paragraph three of Article 70 of the ZGD-1

Petrol d.d., Ljubljana, has no established branches.

3.3.13 Petrol Group within the framework of its economic activities

also carries out the activity specified in Article 70b of the ZGD-1, namely the activity of economic exploitation of mineral resources (geothermal resource), but the payments to the Republic of Slovenia in 2024 did not exceed the amount specified in paragraph two of Article 70b.

3.4 Information on the operation of the general meeting

In compliance with applicable legislation, namely the Companies Act, the General Meeting of Shareholders is the body of the Company in which shareholders exercise their rights related to matters pertaining to the Company. The convening of the General Meeting is regulated by the Company's Articles of Association in compliance with legislation in force. The General Meeting of Shareholders is convened by the Management Board of the Company on its own initiative, at the request of the Supervisory Board, or at the request of the Company's shareholders whose total shares account for one twentieth of the Company's share capital. The beneficiary requesting the convening of the General Meeting must, with the request in writing, attach the agenda, a proposal for a decision for each proposed agenda item on which the General Meeting should deliberate, or if the General Meeting does not adopt a decision on an individual agenda item, an explanation of the agenda item. Notwithstanding this, the General Meeting of the Company, with the content required by regulations, may also be convened by registered letter to all shareholders, if their names and addresses can be determined from the valid share register. In this case, the day the mail was sent is considered the day of the announcement of the General Meeting.

The Management Board convenes a meeting of the Company's General Meeting 30 days prior to the meeting by publishing it on the SEOnet stock exchange information system of the Ljubljana Stock Exchange, d.d., Ljubljana, on the AJPES website and the Company's website. In the convening announcement of the General Meeting, the Management Board shall state the time and place of the meeting, determine the bodies that will lead the meeting, the agenda and proposed decisions of the General Meeting, and other information required in compliance.

with applicable legislation.

38th General Meeting

At the 38th General Meeting, held on 23 May 2024 (the notice of the decisions of the General Meeting is available at the following link: 38th General Meeting of the Company), the Company's shareholders took note of the annual report and the report of the Supervisory Board on the audit results of the annual report for the 2023 financial year, as well as the report on the remuneration of the members of the management and supervisory bodies. The shareholders deliberated on and adopted the Decision on the appropriation of distributable profit and granting discharge to the Management Board and Supervisory Board for 2023. The General Meeting also adopted the Remuneration Policy for Management and Supervisory Bodies of the Petrol d.d., Ljubljana.

3.5 Information on the composition and work of management and supervisory bodies

Petrol d.d., Ljubljana has a two-tiered board structure. The Company is managed by the Management Board whose operations are supervised by the Supervisory Board. The governance of Petrol d.d., Ljubljana, is based on statutory provisions, the articles of association as the basic legal act of the Company, internal acts and established and generally accepted good business practice.

The composition of the Management Board and Supervisory Board is aligned with the key challenges and opportunities arising from Petrol's operations. Their expertise provides a comprehensive overview of regional and global energy markets and specific impacts on Petrol's business model.

Members of the Management Board and Supervisory Board regularly receive training in areas related to energy, energy transition, sustainable development, and corporate governance. In addition, they have access to external experts and consultants, which allows them to quickly adapt to changing market and regulatory requirements.

The expertise of the Management Board and Supervisory Board enables a comprehensive consideration of the impacts, risks and opportunities associated with sustainable operations. In the environmental field, they are aware of the key role of climate change mitigation and energy transition, which constitute both opportunities and risks for Petrol. Their expertise facilitates the strategic integration of these aspects into business planning and investment decisions. In the social field, the competences of the members of the management bodies ensure that topics such as employee safety and health, promotion of gender equality and work-life balance support are adequately addressed. At the governance level, the members' experience in compliance, corporate governance and risk management ensures that the Company operates in compliance with legislative requirements, including the CSRD directive and ESRS standards, and effectively manages the risks associated with sustainable operations.

Work of the Management Board

Petrol d.d., Ljubljana, is managed by the Management Board independently and at its own responsibility. The Management Board represents the Company. In compliance with the Company's Articles of Association, the Management Board consists of the President and other members, with the board consisting of a minimum of three and a maximum of six members. The exact number of Members of the Management Board, their areas of work and powers are determined by the Company's Supervisory Board by decision, at the proposal of the President of the Management Board. One member of the Management Board is always the Worker Director, elected by the Workers’ Council. The Worker Director only participates in decisions on issues related to the development of the HR and social policy.

The Company's Management Board discussed issues within its scope of competence at 71 meetings held in 2024. At all meetings, the Management Board adopted practically all decisions unanimously. In addition to formal meetings, the Management Board exercised its powers and responsibilities in daily operations and its powers and responsibilities towards the General Meeting, as defined by the ZGD-1 and the Company's Articles of Association. The Management Board carried out its activities in relation to the Supervisory Board in compliance with the provisions of the Rules of Procedure of the Supervisory Board and the Company's Articles of Association. The Management Board regularly reported to the Supervisory Board.

9 GOV-1, paragraph 21 c– Experience in relation to the Company’s sectors, products and geographical locations

10 GOV-1, paragraph 21 c – Experience in relation to the Company’s sectors, products and geographical locations

11

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

GOV-1, paragraph 23 b

Disclosure of how skills and expertise related to sustainability are linked to material impacts, risks and opportunities

GOV-1, paragraph 21 b

Representation of employees and other workers

on the Company's operations and consulted with the Supervisory Board on the Company's strategy, development of operations and risk management. The Management Board also focused part of its activities towards cooperation with the Workers’ Council and the representative trade union. Members of the Management Board are appointed for a five-year term and can be re-appointed. The Company is jointly represented by the President of the Management Board and a Member of the Management Board. In the event that the Management Board grants a power of attorney, the procurator may represent the Company only together with the President of the Management Board. The Management Board of the Company requires the consent of the Supervisory Board to conclude the following transactions:

  • transactions based on which the Company acquires or disposes of treasury shares;
  • transactions in the value of over EUR 1,000,000.00, based on which the Company acquires or disposes of ownership interests or shares of companies, whereby, for the avoidance of doubt, transactions related to the implementation or participation of the Company in the capital increase process of another company are also considered transactions for the acquisition of ownership interests or shares;
  • transactions based on which the Company establishes or dissolves any company and/or business unit;
  • transactions on the basis of which the Company borrows or approves a loan exceeding EUR 2,000,000.00, except for such transactions concluded between the Company and its subsidiaries, and transactions involving borrowing by the Company in amounts included in the Company's borrowing plan approved by the Company's Supervisory Board. For the avoidance of doubt, a series of consecutive loans taken out by the Company from the same lender or approved by the Company to the same borrower shall also be considered a single loan, whereby the same lender or borrower shall also include affiliated companies within the meaning of Article 527 of ZGD-1;
  • individual transactions of acquisitions or sales of non-current intangible assets, tangible fixed assets and investment properties of the Company for an amount exceeding EUR 5,000,000.00. For the avoidance of doubt, a set of several interconnected transactions is also considered a single transaction, especially if they constitute a single investment or form part of a single investment programme;
  • transactions on the basis of which the Company (a) takes out a mortgage, right of superficies or any other encumbrance against real estate owned by the Company, with the exception of transactions establishing easements quasi in rem and in rem: (i) for the benefit of public and private operators for the purposes of managing the Company's real estate or (ii) for the benefit of the state or municipality or a public service provider; or (b) creates a lien or otherwise encumbers other fixed assets or intangible assets of the Company;
  • granting of power of attorney;
  • other transactions, if so decided by the Company's Supervisory Board by way of a resolution.

The above also applies mutatis mutandis to transactions concluded by subsidiaries in the course of their operations and for which the consent of the Company's Board must be obtained prior to conclusion. For most of the aforementioned transactions, the Management Board must also obtain the prior consent of the Supervisory Board before granting the consent requested by the management of subsidiaries.

Members of the Management Board of Petrol d.d., Ljubljana, in 2024

In 2024, the composition of the Management Board of Petrol d.d., Ljubljana changed. In 2024, the board consisted of five members from 1 January to 28 February, and from 1 March 2024 onwards, it has consisted of six members.

The Petrol Management Board consists of six members whose expertise covers a wide range of key areas that complement each other and form a whole of qualities and knowledge in energy, sustainable development, finance, sales, logistics and digital transformation. Their strategic role includes designing and implementing sustainable strategies to achieve decarbonization, energy efficiency, and the expansion of renewable energy sources. All six Members of the Management Board are male.

The President of the Management Board directs Petrol's strategic transformation with an emphasis on our core activity, sustainable development, operational compliance and innovative IT solutions.

Members of the Management Board manage key operational areas, including business-to-business and business-to-consumer (B2B, B2C) sales, the development of energy solutions, logistics, and finance. Their experience from international corporations and the energy sector provides a strategic overview of business challenges and opportunities at all levels of the.

Group's operations.

The Worker Director ensures that employee interests are included in strategic decisions. The Management Board strives to ensure that all decisions are made unanimously, paying particular attention to incorporating different perspectives and finding common solutions.

Sašo Berger, President of the Management Board

He was appointed President of the Management Board for a five-year term on 23 November 2023. He was born in 1966. He holds a Bachelor’s degree in economics.

Areas of work and responsibilities:

  • HR, processes and general affairs,
  • procurement and trading in fuels and energy commodities,
  • IT,
  • internal audit,
  • office of the Management Board,
  • legal affairs,
  • corporate security and business supervision,
  • strategy,
  • sustainable development, quality and safety.

Jože Smolič, Member of the Management Board

He was appointed Member of the Management Board for a five-year term, commencing on 28 August 2020, and reappointed for another five-year term of office until 27 August 2030. He was born in 1967. He holds a Master’s degree in Economic Sciences.

Areas of work and responsibilities:

  • business-to-consumer sales (B2C),
  • fuels and petroleum products,
  • catering,
  • merchandise and services,
  • marketing and customer experience management,
  • development of physical shops.

Metod Podkrižnik

He was appointed Member of the Management Board for a five-year term, which began on 1 January 2024. He was born in 1971. He holds a Bachelor’s degree in Mechanical Engineering and a Master’s degree in Economic Sciences.

Areas of work and responsibilities:

  • business-to-business and business-to-government (B2B and B2G) sales,
  • electricity,
  • operational management,
  • natural gas.

Marko Ninčević

He was appointed Member of the Management Board for a five-year term on 1 September 2023. He was born in 1981. He holds a Bachelor’s degree in economics with an MBA degree.

Areas of work and responsibilities:

In the period from 14 December 2023 to 28 February 2024:

  • energy generation, energy solutions and mobility,
  • energy and environmental systems,
  • logistics,
  • strategic, technical and operational procurement,
  • demand and project management,
  • finance,
  • accounting,
  • risk management,
  • controlling,
  • back office,
  • business intelligence,
  • treasury,
  • process organisation and real estate management.

In the period from 1 March to 31 December 2024:

  • energy generation, energy solutions and mobility,
  • energy and environmental systems,
  • logistics,

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Drago Kavšek

He was appointed Member of the Management Board for a five-year term on 1 March 2024. He was born in 1974. He holds a Bachelor’s degree in economics.

Areas of work and responsibilities:

  • finance,
  • accounting,
  • risk management,
  • controlling,
  • back office,
  • business intelligence,
  • treasury,
  • process organisation and real estate management.

Zoran Gračner, Member of the Management Board, Worker Director

The Supervisory Board appointed him Member of the Management Board, as the Worker Director, for a five-year term on 11 December 2020. He was born in 1970. He holds a Master's degree in Management and Organisation and a Bachelor’s degree in Mechanical Engineering.

The Worker Director, in compliance with the Articles of Association of Petrol d.d., Ljubljana, co-decides on issues related to the development of HR and social policy.

Tasks and composition of the Supervisory Board

The Supervisory Board of Petrol d.d., Ljubljana, in a two-tier governance system, performs tasks pertaining to supervising the conduct of the Company's business (including the election and appointment of the Management Board), tasks related to the powers of the General Meeting, and other tasks specified by law.

In accordance with the Company's Articles of Association, the Supervisory Board of Petrol d.d., Ljubljana has nine members, of which six are independent shareholder representatives and three are employee representatives.

The Members of the Supervisory Board are elected for a four-year term and can be re-elected after the end of their term. The Supervisory Board elects a President and Deputy President from among its members. The President of the Supervisory Board and the Deputy President of the Supervisory Board are always representatives of the shareholders. The President of the Supervisory Board represents the Company in relation to the Management Board and the Supervisory Board towards the Management Board of the Company and third parties, unless otherwise specified in each specific case. The President of the Supervisory Board represents the Company in concluding an agreement with the auditor of the annual report and consolidated annual report and in relations with the Members of the Supervisory Board.

The Supervisory Board operates in compliance with international corporate governance standards, including the OECD Guidelines for Corporate Governance and the ESRS Guidelines for Disclosure of Risks and Opportunities.

Petrol's Supervisory Board ensures strategic oversight of the Company's operations and its alignment with long-term sustainability targets. The Members of the Supervisory Board have extensive experience in energy, finance, law, real estate, logistics, and corporate governance, which allows for a comprehensive overview of key business challenges and opportunities. The President and Members of the Supervisory Board have an in-depth understanding of regional and international energy markets and governance in the context of sustainable development.

Employee representatives on the Supervisory Board contribute operational knowledge, thereby ensuring a link between strategic directions and the day-to-day operations of the Company, especially in matters pertaining to the Company's human resources and social policy.

Supervisory Board Activities

Within the framework of its activities, the Supervisory Board focuses on four fundamental areas:

  • Strategic oversight, which includes monitoring the implementation of the company's long-term strategy, including achieving sustainability objectives and managing key risks.
  • Managing risks and opportunities, approving and overseeing risk management processes, particularly those related to climate change, financial stability and other significant business impacts.
  • Audit and compliance, ensuring that the Company maintains robust internal control systems and consistently complies with legal and regulatory requirements.
  • Independence and professionalism, reflected in impartial decision-making and the professional contribution of Members, whose experience enables the stable and sustainable development of the company.

In doing so, the Supervisory Board contributes to solid corporate governance, which is based on transparency, accountability, and the long-term sustainability of Petrol's operations.

Composition of the Supervisory Board in 2024

The Supervisory Board of Petrol d.d., Ljubljana, operated in the following composition in 2024:

Name Position Company/Organization Appointment Details
Janez Žlak President of the Supervisory Board HSE d.o.o., Ljubljana Appointed for a four-year term at the 33rd General Meeting of Shareholders, held on 22 April 2021, with the term of office beginning on 22 April 2021. Since the inaugural meeting held on 22 April 2021, he has served as the President of the Supervisory Board.
Borut Vrviščar Deputy President of the Supervisory Board Kuehne+Nagel, AG, Schindellegi, CH Appointed for a four-year term at the 32nd General Meeting of Shareholders, held on 28 December 2020, with the start of the term of office on 11 April 2021 as a Member of the Supervisory Board. Since the inaugural meeting held on 22 April 2021, he has served as Deputy President of the Supervisory Board.
Mladen Kaliterna Member of the Supervisory Board Perspektiva FT, d.o.o., Ljubljana Appointed for a four-year term at the 23rd General Meeting of Shareholders, held on 4 April 2013, with his term of office beginning on 16 July 2013. He was re-appointed at the 27th General Meeting of Shareholders, held on 10 April 2017, with his four-year term beginning on 16 July 2017. From 11 to 21 April 2021, he served as President of the Supervisory Board. He was re-appointed at the 32nd General Meeting of Shareholders, held on 28 December 2020, with his four-year term of office starting on 16 July 2021.
Alenka Urnaut Member of the Supervisory Board Exiit Group d.o.o. Appointed for a four-year term at the 32nd General Meeting of Shareholders, held on 28 December 2020, with her term of office beginning on 11 April 2021.
Mário Selecký Member of the Supervisory Board J\&T Banka, a.s. Appointed for a four-year term at the 32nd General Meeting of Shareholders, held on 28 December 2020, with his term of office beginning on 11 April 2021.
Aleksander Zupančič Member of the Supervisory Board Javno podjetje Komunala Brežice d.o.o. Appointed for a four-year term at the 32nd General Meeting of Shareholders, held on 28 December 2020, with his term of office beginning on 11 April 2021.
Alen Mihelčič Member of the Supervisory Board Employee representative

Disclosure of Skills and Expertise

GOV-1, paragraph 23 b – Disclosure of how skills and expertise related to sustainability are linked to material impacts, risks and opportunities.

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Supervisory Board Members

Petrol d.d., Ljubljana, Director of Management and Sales of Petroleum Products. He was appointed for a four-year term at the 3rd meeting of the Workers’ Council, held on 27 January 2017. His term of office began on 22 February 2017. He was re-appointed at the 44th meeting of the Workers’ Council, held on 4 December 2020, with his four-year term of office starting on 23 February 2021.

Robert Ravnikar, Member of the Supervisory Board, employee representative

Petrol d.d., Ljubljana, Director of OEM Ljubljana - Kranj. He was appointed for a four-year term at the 3rd meeting of the Workers’ Council, held on 27 January 2017. His term of office began on 22 February 2017. He was re-appointed at the 44th meeting of the Workers’ Council, held on 4 December 2020, with his four-year term of office starting on 23 February 2021.

Marko Šavli, Member of the Supervisory Board, employee representative

Petrol d.d., Ljubljana, professional associate for occupational health and safety and fire safety. With the resignation of Supervisory Board member Zoran Gračner, he was appointed alternate member of the Supervisory Board, employee representative, at the 44th meeting of the Workers’ Council, held on 4 December 2020, in compliance with provision 10.13 of the Company's Articles of Association, with his term of office starting on 11 December 2020. At the same meeting, he was also appointed for a four-year term, which he took up after the end of his term as an alternate member, on 23 February 2021.

Number of Supervisory Board Members in 2024 and Structure by Gender

Of the nine members of the Supervisory Board, eight are men and one is a woman. The Supervisory Board consists of six shareholder representatives and three employee representatives, the latter being appointed by the Workers’ Council. Of the six shareholder representatives, five are men and one is a woman, while all three employee representatives are male.

All Members of the Supervisory Board have submitted a declaration of independence, which is published on Petrol's website and updated annually, in which they define themselves as independent (100 percent of the board members are independent).

Committees Established in 2024

In 2024, the Supervisory Board established two permanent committees, namely the Audit Committee, which is mandatory by law, and the HR and Management Board Evaluation Committee.

The Audit Committee reviews financial reporting, monitors internal controls and risk management in the Company, monitors the internal and external auditing process, and compliance with regulations. In addition, it investigates activities within its jurisdiction and obtains external legal or independent expert advice.

The Human Resources and Management Board Evaluation Committee monitors and evaluates the work of the Management Board, carries out the nomination procedure for Members of the Management Board and Members of the Supervisory Board, monitors the division of work areas among members of the Supervisory Board, and establishes the achievement of the Management Board’s goals, including strategic and sustainability objectives.

Audit Committee Members in 2024

The Audit Committee had the following members in 2024:

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Committee Members

  • Alenka Urnaut, Chair of the Committee,
  • Mladen Kaliterna, Member of the Committee,
  • Aleksander Zupančič, Member of the Committee,
  • Robert Ravnikar, Member of the Committee,
  • Sabina Merhar, External Member of the Committee.

GOV-1, paragraph 21 d

Gender balance and other aspects of diversity taken into account by the Company

GOV-1, paragraph 21 e

Percentage of independent board members

GOV-1, paragraph 22 a

Information on the identity of the administrative, management and supervisory bodies or individuals within the body responsible for overseeing impacts, risks and opportunities

Human Resources and Management Board Evaluation Committee

The Human Resources and Management Board Evaluation Committee had the following members in 2024:

  • Borut Vrviščar, Chair of the Committee,
  • Janez Žlak, Member of the Committee,
  • Mário Selecký, Member of the Committee,
  • Alen Mihelčič, Member of the Committee,
  • Marko Šavli, Member of the Committee.

Remuneration policy for members of the management and supervisory bodies

In compliance with the provisions of Article 294a of the ZGD-1, the company has developed a Remuneration Policy for Management and Supervisory Bodies, which it submitted to the General Meeting of the Company for approval at its 38th session. Approval was granted. The nominal amounts received in the 2024 financial year for each Member of the Management Board and the Supervisory Board are listed in the accounting section of this report (Section 7: Related party transactions), more specifically in the Report on the remuneration of the management and supervisory bodies of Petrol d.d., Ljubljana, in the 2024 financial year, which the Company compiled in compliance with the provisions of Article 294.b of the ZGD-1.

For members of the Management Board, data on fixed and variable payments and other remuneration are also disclosed, as well as the criteria and methods used to determine whether these criteria are met. The remuneration policy in the part relating to the Members of the Management Board is proposed by the Supervisory Board. For a Member of the Management Board, the Worker Director, who is a legal representative, but can only represent the Company together with the President of the Management Board and upon a decision of the Supervisory Board, his/her remuneration policy for performing this function is determined by the “Agreement on Employee Participation in the Management of Petrol”, signed by the Management Board and the Workers’ Council on 7 October 1997. In the variable part, the remuneration of the Member of the Management Board, the Worker Director, is adjusted to the respective multiple of the monthly salary determined by the Supervisory Board for the Members of the Management Board.

In compliance with the adopted Remuneration Policy for Management and Supervisory Bodies in Petrol d.d., Ljubljana, the other Members of the Management Board are entitled to the following remuneration:

  • The remuneration of the Members of the Management Board consists of a fixed and variable part. In addition to fixed and variable remuneration, Members of the Management Board are also entitled to severance pay and certain other benefits or rights in certain cases.
  • The fixed part of the remuneration is intended to pay the Member of the Management Board for performing tasks, for their effort and assuming responsibility and is determined with the aim of ensuring financial stability, rewarding effort and reflecting professional experience and loyalty, and does not depend on performance or other unforeseen factors. The fundamental guidelines used for determining this part of the remuneration are the complexity and responsibility of the tasks. The fixed part of the remuneration constitutes the basic wage of a member of the Management Board, which is determined by the employment agreement and is expressed in the form of a gross amount. To determine the basic salary, the level of complexity and responsibility of the work is primarily taken into account, taking into account the size of the company (number of employees, value of assets and net sales revenue) and the complexity of operations.

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internationalisation, requirements of the immediate economic environment, complexity of key products, regulation level of the respective activity).

  • Variable remuneration is based on the performance of the Petrol Group and the performance of the Management Board as a whole. Performance criteria are transparent, flexible and consistently followed. Variable remuneration consists of remuneration based on the fulfilment of financial and non-financial criteria that contribute to both the short-term and long-term performance of the Company. The variable part of the remuneration is determined based on criteria that contribute to promoting the business strategy, long-term development and sustainability of the Company. The criteria are known in advance, and their fulfilment is verified using predefined methods. The Company's Board, no later than upon adoption of the audited annual report for the financial year, shall also submit to the Supervisory Board a report on the work of the Management Board, which, taking into account the relevant regulations, provides all the necessary bases on which the Supervisory Board can assess the performance of the Management Board in the financial year and consequently determine the appropriate amount of variable remuneration.
  • The Members of the Management Board are entitled to certain other benefits:
  • premiums for life, accident, disability insurance, voluntary supplementary pension insurance, liability insurance for damage to the Company or third parties, health insurance, under the conditions specified in the respective employment agreement;
  • under the same conditions and in the same amount as for employees of the company, holiday pay, an allowance in lieu, jubilee bonuses, reimbursement of travel expenses, reimbursement of meal costs during work;
  • non-competition clause: within the provisions of the law governing employment relationships and under the conditions set out in the respective employment agreement;
  • certain other benefits befitting the position of a Member of the Management Board for the smooth performance of their function.
  • A Member of the Management Board is also entitled to severance pay under the conditions set forth by the law, the Remuneration Policy and the employment agreement.

The remuneration of the Supervisory Board is determined by the General Meeting of the Company. At the 33rd General Meeting, held on 22 April 2021, a decision was adopted determining the remuneration of the Members of the Supervisory Board. The entire decision of the General Meeting can be found in the notice of adopted decisions of the General Meeting at the following link: 33rd General Meeting.

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APPENDIX C: COMPOSITION AND REMUNERATION OF THE MANAGEMENT BOARD AND SUPERVISORY BOARD

C.1: Composition of the Management Board in the 2024 financial year

23

23

GOV-1, paragraph 23 a – Information on sustainability-related expertise that the body as a whole either directly possess or can draw on

Function

(president, member)

First appointment to the office Termination of office/mandate Gender Nationality Year of birth Education Professional profile Membership of the supervisory bodies of non-related companies Sustainability competencies
23 November 2023 22 November 2028 male Slovenian 1966 Bachelor’s degree in Economics competencies in the fields of corporate management and governance, finance, accounting, controlling, IT, purchasing, human resources and legal affairs / business compliance, internal audit, ESG regulations, integration of sustainable business practices into strategy, understanding of ESG standards and corporate responsibility
01 September 2023 31 August 2028 male Slovenian 1981 Bachelor’s degree in Economics, with an MBA degree competencies in the fields of corporate management and governance, finance, risk management, auditing / risk management, energy transition, strategic decision-making for the green transition, sustainable aspects of purchasing

and logistics

processes, risk analysis in investments in energy projects

Member of the Board 28 August 2020 27 August 2030 male Slovenian 1967 Master’s degree in Economic Sciences competencies in the fields of trade, marketing, sales promotion, retail, development of new sales networks and markets, development of new types and concepts of points of sale / development of sustainably oriented sales solutions, digital sales channels, improving the user experience in sustainable retail, promoting responsible consumer purchasing decisions
Member of the Management Board (from 1 March 2024) 1 March 2024 28 February 2029 male Slovenian 1974 Bachelor’s degree in Economics competencies in the fields of corporate management and governance, finance, accounting, controlling, IT, purchasing, human resources and legal affairs / CSRD, ESRS, EU taxonomy, methodological harmonisation, adaptation to regulatory requirements in financial processes, risk management and controlling with an emphasis on sustainability aspects
Member of the Board 1 January 2024 31 December 2028 male Slovenian 1971 Bachelor’s degree in Mechanical Engineering, Master’s degree

in Economic Sciences

competencies in corporate management, procurement, logistics and commerce / integration of renewable energy sources, sustainable approaches in B2B and B2G business, support in improving energy efficiency and developing sustainable solutions

Member of the Board, Head of the Works Council

11 December 2020

10 December 2025

male Slovenian 1970

Master’s degree in Management and Organisation, Bachelor’s degree in Mechanical Engineering

competencies in the energy field / employee representation, social aspects of sustainable business, an inclusive human resources policy, promotion of a sustainable and inclusive work environment

Area of work in the Management Board

The Head of the Works Council is not responsible for any area of work; he/she co-decides on issues related to the development of the human resources and social policy.

Name and Surname Area of work in the Management Board
Drago Kavšek In the period from 14 December 2023 to 31 December 2024: human resources, processes and general affairs; procurement and trading of fuels and energy commodities; IT; internal audit; office of the Board; legal affairs; corporate security and business control; strategy; sustainable development, quality and safety.
Metod Podkrižnik
Zoran Gračner
Sašo Berger In the period from 14 December 2023 to 28 February 2024: energy generation, energy solutions and mobility; energy and environmental systems; logistics; strategic, technical and operational procurement; development needs and project management; finance; accounting; risk management; controlling; back office; business intelligence; treasury; process organisation and real estate management.
Marko Ninčević In the period from 1 March to 31 December 2024: energy generation, energy solutions and mobility; energy and environmental systems; logistics; strategic, technical and operational procurement; management of development needs and projects.
Jože Smolič In the period from 14 December 2023 to 31 December 2024: sales to end customers (B2C); fuels and petroleum products; gastro; merchandise and services; marketing and user experience management; development of physical points of sale.

In the period from 1 March to 31 December 2024: finance; accounting; risk management; controlling; back office; business intelligence; treasury; process organisation and real estate management.

Area of work in the Management Board

In the period from 1 January to 31 December 2024: business-to-business and business-to-government (B2B and B2G) sales; electricity; operational business; natural gas.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

C.2: Composition of the Supervisory Board and Committees in the 2024 financial year, part 1

C.2: Composition of the Supervisory Board and Committees in the 2024 financial year, part 2

Name and Surname Function (president, deputy, member of the Supervisory Board) First appointment to the office Termination of office/mandate Shareholder/employee representative Attendance at Supervisory Board meetings according to the total number of meetings Gender Nationality Year of birth
Janez Žlak President of the Supervisory Board in 2024 22 April 2021 21 April 2025 Capital representative Attended all 14 sessions of the Supervisory Board in 2024 male Slovenian 1965
Borut Vrviščar Deputy President of the Supervisory Board in 2024 28 December 2020 10 April 2025 Capital representative attended 13 out of a total of 14 Supervisory Board sessions in 2024 male Slovenian 1969
Aleksander Zupančič Member of the Supervisory Board in 2024 28 December 2020

2025

Supervisory Board Members

Name Role Gender Nationality Year of Birth Start Date End Date Attendance
Mladen Kaliterna Member of the Supervisory Board in 2024 male Slovenian 1979 04 April 2013 15 July 2025 Attended all 14 sessions of the Supervisory Board in 2024
Alenka Urnaut Member of the Supervisory Board in 2024 female Slovenian 1967 28 December 2020 10 April 2025 Attended all 14 sessions of the Supervisory Board in 2024
Mário Selecký Member of the Supervisory Board in 2024 male Slovak 1975 28 December 2020 10 April 2025 Attended 13 out of a total of 14 sessions in 2024
Alen Mihelčič Member of the Supervisory Board in 2024 male Slovenian 1975 27 January 2017 22 February 2025 Attended all 14 sessions of the Supervisory Board in 2024
Robert Ravnikar Member of the Supervisory Board in 2024 male Slovenian 1979 27 January 2017 22 February 2025 Attended all 14 sessions of the Supervisory Board in 2024
Marko Šavli Member of the Supervisory Board in 2024 male Slovenian 1979

Member of the Supervisory Board in 2024

11 December 2020

22 February 2025

Employee representative

Attended all 14 sessions of the Supervisory Board in 2024

male Slovenian 1973

Name and Surname Education Professional profile Independence according to Article 23 of the Code (YES/NO) Existence of a conflict of interest in the financial year (YES/NO) Membership of the supervisory bodies of other companies Membership of committees (audit, HR, remuneration, etc.) President/member Attendance at committee meetings according to the total number of committee meetings
Janez Žlak Ph.D. general management and governance, state investment management YES NO / The HR and Board Work Evaluation Committee Committee Member in 2024 Attendance at all 7 sessions in 2024
Borut Vrviščar Bachelor’s degree in Electronics Engineering, Leadership and strategic management, Top management programme logistics, organisation and management YES NO / The HR and Board Work Evaluation Committee Committee President in 2024 Attendance at all 7 sessions in 2024
Aleksander Zupančič Bachelor’s degree in Law organisation and management, law, psychotherapy and coaching

Audit Committee

Committee Member in 2024 Attended all 8 sessions in 2024
Mladen Kaliterna YES
Alenka Urnaut YES
Mário Selecký YES
Marko Šavli YES

The HR and Board Work Evaluation Committee

Committee Member in 2024 Attendance at all 7 sessions in 2024
Alen Mihelčič YES
Robert Ravnikar YES

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

46

3.6 The Diversity Policy in brief

At its 21st meeting held on 13 December 2018, the Supervisory Board adopted the Diversity Policy regarding representation in the management or supervisory bodies of the Company, which was published on the Company's website in Slovenian and English on 31 December 2018. The full text of the published Diversity Policy, which includes the set goals and the method of implementation, is available in Slovenian at the following link: Diversity Policy, 13 December 2018.

The aim of the Diversity Policy is to ensure that the composition of the Management Board and the Supervisory Board is such that each body is provided with a set of abilities, professional knowledge, skills and experience, which will enable a good understanding of current developments and long-term risks and opportunities related to the Company's operations, which will ensure sustainable and long-term successful operations. According to the analysis of long-term trends in energy and trade activities and related services (taking into account political-legal, economic, socio-cultural, demographic, technological and natural and industry forces), the following aspects of diversity are essential for efficient and sustainable operations: professional diversity, professional experience, diversity of competencies, as well as gender diversity, age diversity and ensuring continuity.

The composition of the Management Board and the Supervisory Board must achieve complementarity and diversity, which are reflected:

  • in a variety of experience, age, gender, education and professional skills at the level of individual members of the Management Board or Supervisory Board and consequently at the level of the Management Board or Supervisory Board as a whole;
  • in a know-how of the industry and the characteristics of the legal and regulatory environment;
  • in an appropriate manner of communication, cooperation and critical assessment in the decision-making process of the Management Board or Supervisory Board.

The Company has set itself the following main objectives with its Diversity Policy:

  • to ensure at least 30 percent representation of the under-represented gender among capital representatives on the Supervisory Board;
  • the efforts of all stakeholders in the human resources processes involved in appointing the Management Board to achieve the greatest possible gender balance, by creating an appropriate pool of candidates that takes into account the appropriate representation of the under-represented gender;
Name and Surname Committee Attendance at committee meetings according to the total number of committee meetings Gender Nationality Education Year of birth Professional profile Membership of the supervisory bodies of non-related companies
Sabina Merhar Audit Committee attended 7 out of a total of 8 sessions in 2024 female Slovenian Master’s degree in Economic Sciences, majoring in Accounting and Auditing 1975 competences in the field of financial and accounting

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Management, Auditing

• efforts to ensure that the entire composition of the Supervisory Board does not change, with the goal of one-third continuity.

The Diversity Policy is appropriately implemented through the recruitment and selection process used for members of the Supervisory Board and the Management Board. The Policy is administered by the Human Resources and Management Board Evaluation Committee, which monitors its implementation and reports to the Supervisory Board. It is used primarily in activities such as the recruitment, selection and proposal of candidates for the Supervisory Board to the General Meeting, the appointment of members of the Management Board and Supervisory Board committees, and the work self-assessment implementation of the Supervisory Board.

For the most part, the objectives of the Diversity Policy have been adequately achieved, especially the objectives relating to diversity in education, profession, experience, and age. Diversity objectives relating to gender diversity have been achieved in part. The members of the Management Board are male. The Supervisory Board which held meetings in 2024 and whose members' terms expire in 2025 consists of one female member and eight male members. The female representative has been appointed external member of the Audit Committee. The energy sector has been found to have a low level of female representation in management positions, which is the predominant reason for the male representation in the Company's management and governance bodies. In 2019, the Supervisory Board also joined the Initiative for Voluntary Achievement of Targeted Gender Diversity 40/33 2026 of the Slovenian Directors’ Association, which was supported, among others, by the Slovenian Sovereign Holding, d.d., and the Ljubljana Stock Exchange, d.d.

Sašo Berger

Drago Kavšek

President of the Management Board

Member of the Management Board

Marko Ninčević

Jože Smolič

Member of the Management Board

Member of the Management Board

Metod Podkrižnik

Zoran Gračner

Member of the Management Board

Member of the Management Board and Worker Director

Ljubljana, 2 April 2025

4. Performance analysis of the Petrol Group 2024

4.1 Business environment

The operations of the Petrol Group are highly diversified and take place in two highly competitive industries: energy and trade. In addition to mega trends in the energy and trade sectors, the operations of the Petrol Group are impacted by several other, often interdependent factors. The most important include energy commodity price developments and developments in the US dollar exchange rate, which are a reflection of global economic trends. In addition, in the markets in which the Petrol Group operates, operations are also significantly impacted by local economic conditions (economic growth, price growth rate, consumption and manufacturing growth) and actions taken by the state to regulate prices and the energy commodity market. Digitisation and changing consumer habits also have a significant impact on the operations and development of the Group, impacting the development of business models and services.

High energy commodity prices and rising inflation in

2022 led to the regulation of fuel, electricity and natural gas prices in the markets in which the Group operates. Despite the drop in prices as early as at the end of 2022, fuel and electricity prices continued to be regulated throughout 2024, while the regulation of natural gas prices ended: at the end of March 2024 in Croatia, at the end of April 2024 in Slovenia.

Economic growth in the euro zone slowed down considerably in 2023. International institutions predicted a boost in GDP growth for 2024, but there was no dramatic recovery. According to Eurostat's initial estimates24, economic growth in the eurozone in 2024 amounted to 0.7 percent. According to initial estimates, inflation amounted to 2.4 percent (December 2024 compared to December 2023).

GDP growth in Slovenia was 1.6 percent in 202425. Activity in most economic sectors was higher year-on-year for most of the year, but continued to lag behind in construction. Export market share strengthened, real revenue increased in the trade sector, whereas it decreased in marketing services in the second half of the year. The employment rate remains at record levels, the unemployment rate is low26. The gross wage per employee was on average 6.2 percent higher in 2024 compared to the year before. Annual inflation in Slovenia in 2024 amounted to 2.0 percent (average for the year) or 1.9 percent (December 2024 compared to December 2023).

According to the initial estimate of the Croatian Bureau of Statistics, GDP in Croatia increased by 3.6 percent and inflation by 3.4 percent in 2024 year-on-year (December 2024 to December 2023).

Strong competitiveness, global geopolitical environment and strategic importance of changes in the energy sector set a framework for the Petrol Group's operations.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Public

Real GDP growth, in % Inflation, year average, in %
Source: IMAD, Spring forecast 2024 (Slovenia), Croatian Bureau of Statistics – Estimate for 2024 (Croatia), International Monetary Fund, October 2024 (other)

Oil and petroleum product price developments

The price of North Sea Brent Crude in 2024 ranged between USD 69.2 per barrel and USD 91.2 per barrel. The average price in 2024 amounted to 79.8 USD per barrel, which is 3 percent less than in 2023.

The price of oil increased in the first quarter of 2024 due to the reduced volumes of oil extracted by the OPEC, increased demand from China (the largest oil importer), and the wars in Israel and Ukraine. At the beginning of the second quarter of 2024, it began to fall due to the planned reduction in restrictions on the amount of oil extracted by OPEC. In addition, the global economy began to cool, with China, still facing a real estate crisis and reduced domestic demand, playing a key role. In June, the price of oil rose due to an increased seasonal demand for.

By having efficiently managed financial risks, including foreign exchange, price and volumetric hedging of energy.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Price cap on petroleum products

The retail prices of diesel and NMB-95 petrol are regulated in key markets where we have a retail network, although this is not common practice in the European Union. The lower margin compared to practices in developed European countries along with the rising costs resulting from the inflation is becoming an increasing burden for Petrol’s operations. Additionally, regulatory requirements are becoming more stringent in the field of biocomponent blending and energy savings, which generally pursue the goal to fast-track the green transition, yet the unharmonized margin elevates the risk of such goals not being achieved and, additionally, reduces the strategic potential of energy independence.

The importance of fuel margins for the energy independence and the green transition.

Cap on petrol prices in Slovenia, Croatia and Serbia, in EUR/litre

Cap on diesel prices in Slovenia, Croatia and Serbia, in EUR/litre

The price of extra light fuel oil has been regulated since 9 November 2021, with the exception of the period from 22 May to 12 September 2022. Until 21 May 2022, the maximum margin was limited to EUR 0.06/litre, and, since 27 September 2022, it has been limited to EUR 0.08/litre.

In the Croatian market, The Regulation on the Maximum Retail Pricing sets maximum margins for petrol (Eurosuper 95), Eurodiesel and “blue diesel”. Premium fuels are exempt from regulation if the seller also offers basic regulated fuel at the service station. Prices for the propane-butane mixture for large tanks or gas storage tanks and for LPG.

gas bottles (7.5 kg or more) are also regulated.

In the Republic of Serbia, a regulation has set the maximum retail price since 9 February 2023, including value added tax, for Eurodiesel and unleaded petrol NMB-95 amounting to the average wholesale price of petroleum products in Serbia, increased by the amount determined by the regulation.

In Bosnia and Herzegovina, as of 3 April 2021, the retail calculation margin has been limited to a maximum of 0.25 BAM/litre (0.128 EUR/litre), the wholesale margin to 0.06 BAM/litre (0.0307 EUR/litre).

In Montenegro, the prices of petroleum products are set in compliance with the Regulation on the Method of Maximum Retail Pricing of Petroleum Products, in force since March 2021. Prices change every 14 days based on the developments of the listed Platts prices and the dollar exchange rate. The regulation sets fixed margin amounts, namely for NMB-95/98 in the amount of 0.1108 EUR/litre and for diesel 0.1079 EUR/litre.

Petrol Archive

Price developments of other energy commodities

In 2024, energy prices, both electricity and natural gas, were characterised by high daily price fluctuations or price volatility within a trading day.

LPG – Liquefied petroleum gas

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report 53

The electricity annual base product in the Hungarian market for 2025 closed the clearing price on the first trading day of 2024 at a rate of 102.5 EUR/MWh, and prices already dropped significantly in January.

In the first three months of the year, they fell most of the time amid high daily price fluctuations. In the second quarter of the year, electricity prices rose, driven by continued increases in energy demand due to the recovery of industrial manufacturing in Europe, Asian competition for liquefied natural gas supplies, and geopolitical risks in the Middle East and Ukraine. The reduction in power imports from Austria has increased the daily volatility of spot prices, and, in particular, the so-called "duck effect" is increasingly reflected, where excess energy during the sunny part of the day causes low prices, while during the evening peaks, high demand and lack of production flexibility cause extremely high prices, even up to 1,000 EUR/MWh.

In the fourth quarter, electricity futures prices increased again due to lower-than-expected wind power generation, escalating geopolitical conflicts in Ukraine and the Middle East, lower-than-expected temperatures in the region of Central and SEE, a lack of hydro power generation in the SEE region, and reduced imports to European LNG.

terminals, which have been almost non-existent in the last two months. Thus, the annual base electricity product on the Hungarian market for 2025 closed the clearing price on the last trading day of 2024 at a rate of 117.4 EUR/MWh. A reduced electricity demand may be further stimulated by the predicted global economic slowdown and the economic crisis in Europe, especially in the German automotive industry.

Electricity price developments in 2023 and 2024 and projections for 2025 and 2026

Source: Petrol, 2024

LNG – Liquefied Natural Gas

Price fluctuations on the electricity market are increasing in the light of the geopolitical situation and the rising share of renewable energy generation.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

With record-breaking warm weather during the 2023/24 heating season and a decrease in industrial consumption, the situation in the natural gas market in Europe continued to de-escalate in the first quarter of 2024. At the end of winter, warehouses in Europe remained at record fullness levels. A ninety percent fullness of the warehouses was again achieved before the end of August, thus taking an important step towards achieving security of supply and price stability in the 2024/25 heating season.

Prices of natural gas bottomed in wholesale markets at the end of the heating season in the first quarter. Due to uncertain geopolitical conditions, especially the war in Ukraine and the Middle East, weather conditions and still insufficient supply sources, the trend of rising gas prices in Europe continued throughout the year. A prolonged period of cold weather in the transition from autumn to winter 2024, poor wind conditions in northern Europe, and the disruption of Russian gas supplies via Ukraine further impacted the upward trend in energy commodity prices in the last two months of the current year.

Price growth would continue in the coming months amid low temperatures and potential supply disruptions. Geopolitical uncertainty is said to be the one continuing to cause price volatility in the European gas market. The ceasefire in Israel offers hope for stability, while Ukrainian drone attacks on the TurkStream gas pipeline and other political developments bring new risks. Futures prices are expected to stabilise in the event of above-average temperatures, increased electricity generation from renewable sources and reduced consumption due to the economic slowdown, with stable natural gas supplies from Norway and imports to European LNG terminals. The above factors will also have a major impact on the price developments of electricity futures contracts.

Natural gas price developments in 2023 and 2024 and projections for 2025 and 2026

Source: Petrol, 2024

Both short- and long-term gas price forecasts are significantly influenced by the weather, geopolitical activity and gas storage occupancy rates.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Cap on the prices of other energy commodities

Slovenia

  • Electricity
  • Retail electricity prices for household customers and small business customers, as laid down by the Electricity Supply Act, and for consumption in common areas of multi-dwelling housing and in

Regulation of Electricity Prices

Common areas in mixed multi-dwelling-housing and commercial buildings were regulated throughout 2023. The regulation for micro enterprises and SMEs did not apply in 2024 anymore. The regulation set the maximum permitted retail price of electricity for public institutions, public economic institutions, public agencies, public funds, municipalities, providers of publicly valid education and training programmes, and providers of social welfare services, social welfare programs, and family support programs throughout 2023.

For supplies regulated by decrees, suppliers were entitled to a monthly compensation for the difference between the average monthly supply cost and the regulated retail price, taking into account the supplier's cost of 10 EUR/MWh.

The regulation adopted on 20 October 2023 kept the regulation of electricity prices for household consumers in 2024, namely for 90 percent of actual monthly consumption for each tariff separately, while the remaining 10 percent is subject to the price from the supply contract. On 5 June 2024, the Government of the Republic of Slovenia adopted the Regulation laying down compensation for electricity suppliers in 2024.

A new network charge act came into force in October 2024, significantly changing the method of determining the network charge that customers pay in a given month, with tariff items in the high season, which lasts from 1 November to 28 February, being significantly higher than in the other months.

Therefore, as part of the package to mitigate high electricity bills in the 2024/2025 winter season, the Government of the Republic of Slovenia issued a regulation that sets the maximum permitted retail price of electricity for household consumers for consumption in common areas of multi-dwelling housing and common areas in mixed multi-dwelling-housing and commercial buildings from 1 November 2024 to 28 February 2025.

Natural Gas

Retail prices of natural gas from the gas transmission and distribution network system for household and small business customers were regulated throughout 2023. Changes in the field of the network charge regulation and electricity prices at the end of 2024 caused confusion among final customers.

On 13 January 2023, the Government of the Republic of Slovenia adopted the Regulation laying down compensation for natural gas suppliers. For supplies regulated by regulations, suppliers were entitled to a monthly compensation for the difference between the average monthly supply cost and the regulated retail price, taking into account the supplier's cost of 5 EUR/MWh.

The regulation, which was adopted on 20 October 2023, kept natural gas prices regulated until 30 April 2024. The government did not adopt a regulation on compensation to suppliers for the damage incurred by price regulation in 2024.

Heat

The price of heat from district heating for household consumers who receive heat from the distribution system, where the distributor performs a public service through an individual or common consumption point, was regulated in the period from 1 January to 30 April 2023. After the end of the price regulation period, distributors of heat from district heating systems were entitled to compensation for the damage incurred by the regulation. In 2024, prices are not regulated.

Croatia

Natural Gas

The Republic of Croatia, through its energy regulatory agency HERA, introduced the market principle of supply to household consumers throughout Croatia in 2020. To this end, in October

2020, HERA published a bylaw containing a detailed methodology to be used calculating the price for the aforementioned customer segment.

On 4 April 2023, the Croatian energy regulator HERA adopted a new methodology regulating retail natural gas prices in Croatia, introducing a 15-day reference gas sales pricing period instead of the previous 11-month period. The change retroactively impacts contractual relationships between suppliers and customers, as the changed methodology does not take into account the actual value of the price of purchased gas according to the methodology laid down in 2020.

On 7 July 2023, the Government of the Republic of Croatia, by decree, established a mechanism for compensating natural gas suppliers for the difference between the price to be paid when purchasing this energy commodity and the price regulated by the methodology used for natural gas supply pricing. The regulation applies to supplies from 1 April 2023 to 31 March 2024.

The prices of natural gas have not been regulated since the end of the winter season 2023/24.

In Croatia, as in Slovenia, the cap on natural gas prices was removed at the end of March.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

4.2 Operations of the Petrol Group

The Petrol Group’s operating results are reported by the following product groups:

  • Fuels and petroleum products, which includes sales of petroleum products, sales of LPG and other alternative energy commodities (compressed natural gas), the transport, storage and handling of fuels, payment card revenues, and sales of biomass, tyres and tubes, and batteries.
  • Merchandise and services, which includes the sale of foodstuffs, haberdashery, tobacco products, lotteries, coupons and cards, Coffee to Go, Fresh products, car cosmetics and spare parts, as well as car wash services, sales promotion services and other services and catering facility rentals.
  • Energy and solutions, which includes the sale and trading of electricity and natural gas, the sale of energy solutions (systems of energy and the environmental management of buildings, water supply systems, efficient lighting systems, district energy, water treatment, industrial solutions (closed economic areas) and energy solutions for households and businesses), the sale of heating systems, natural gas distribution systems, mobility and energy commodity generation.
  • Other: mining services, maintenance services, vacation rentals.

In 2024, the Petrol Group realized revenue from contracts with customers in the amount of EUR 6.1 billion. In addition to the volumes sold, the amount of revenue is affected most by changes of energy prices which is out of Petrol’s influence. Despite the positive trends in sales volumes of energy, the lower prices of electricity and natural gas and, partly, also of petroleum products contributed to lower revenue compared to the previous year.

Structure of the Petrol Group’s revenue from contracts with customers in 2024 by product groups, in %

The Petrol Group sold 3.9 million tons of fuels and petroleum products in 2024, which is 2 percent more than in 2023. Sales of merchandise and services amounted to EUR 636.3 million and are 11 percent higher than in 2023, with sales of all

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Categories increasing, both in Slovenia and even more so in SEE markets. In 2024, 20.7 TWh of natural gas, 11.3 TWh of electricity and 135.5 thousand MWh of heat were also sold.

Gross profit together with closed net derivative financial instruments for commodities amounted to EUR 750.4 million in 2024, which is 5 percent more than in 2023. Compared to the previous year, a better result was achieved in the sales of fuels and petroleum products, mainly due to good sales in SEE markets, where the achieved margin was also higher than in the previous year. In Slovenia, however, due to stricter margin regulation until mid-July 2024, the result was not as good as the previous year was recorded. Very good merchandise sales results were achieved. We also successfully sold natural gas to foreign markets and generated electricity from renewable energy sources.

Gains and losses on derivatives, used to manage energy commodity sales-related quantity, price and currency risks, are recorded as a separate item in the income statement in accordance with accounting standards.

Structure of the PetrolGroup's gross profit, increased by net gains on closed derivatives for commodities, in 2024, by product group, in %

On 7 July 2023, the Government of the Republic of Croatia, by decree, established a mechanism for compensating natural gas suppliers for the difference between the price to be paid when purchasing this energy commodity and the price regulated by the methodology used for natural gas supply pricing. Geoplin d.o.o. (Zagreb) has already filed a claim for reimbursement of the price difference in the amount of EUR 20.9 million for the April-December 2023 period and in the amount of EUR 15.8 million for the January-March 2024 period. The claim is not recognised in the Petrol Group's financial statements, as it has not been approved by the market regulator.

Operating Costs

Operating costs of the Petrol Group in 2024 amounted to EUR 552.0 million, which is EUR 9.3 million or 2 percent less than in 2023.

The share of operating costs in the gross profit with closed net financial instruments for commodities amounted to 73.6 percent in 2024 and to 78.8 percent in 2023.

Operating costs of the Petrol Group, in EUR million

Costs of materials EUR 55.8 million EUR 9.8 million 15 percent less than in 2023
Energy costs EUR 13.9 million 25 percent lower Mainly due to lower energy prices than in the previous year
Costs of consumables Increased by EUR 4.0 million 46 percent Related to a larger scope of operations
Costs of services EUR 190.2 million EUR 4.0 million 2 percent higher than in 2023
Transport services EUR 44.4 million Increased by EUR 1.8 million 4 percent compared to the previous year

The increase is a result of the growth in the volumes of fuels and petroleum products sold and the increase in transport rates.

The costs of service station operators amounted to EUR 29.2 million, down by EUR 8.2 million or 22 percent compared to the previous year. In the last quarter of 2023, 55 service stations switched from the CODO operation system to the COCO system, which reduced the costs of service station operators and, as a result, increased labour costs and costs of student work in the framework of the intellectual services.

The Petrol Group

2022 2023 2024 Index 2024/2023 Index 2024/2022
Cost of materials 39.4 65.6 55.8 85 142
Cost of services 180.1 186.3 190.2 102 106
Labour costs 135.6 160.6 179.1 112 132
Depreciation and amortisation 96.3 97.5 99.9 102 104
Other costs 16.5 51.4 27.0 53 164
- of which net impairment losses on financial and contract assets 7.9 -0.5 6.2 - 78
Operating costs 467.9 561.3 552.0 98 118

Despite inflationary pressures, the cost efficiency improved thanks to our prudent cost control measures.

The costs of fixed asset maintenance services amounted to EUR 28.9 million, an increase of EUR 0.4 million compared to the previous year.

The costs of intellectual services amounted to EUR 18.7 million in 2024, an increase of EUR 6.1 million or 49 percent compared to the previous year, of which EUR 2.8 million refers to the higher costs of agency workers in Croatia and EUR 3.3 million to the higher costs of student work, partly due to the changed service station operation model and partly due to the replacement of staff, especially at service stations where we are understaffed.

Payment transaction and banking service costs amounted to EUR 16.1 million, an increase of EUR 1.0 million or 7 percent compared to the previous year, mainly due to higher payment card commission costs due to higher sales at service stations.

Current lease costs amounted to EUR 14.8 million, which is EUR 2.0 million or 16 percent more than in 2023. Of this, costs increased by EUR 1.7 million in at Petrol d.o.o. (Zagreb) pertaining to the lease of service stations.

Subcontractor costs amounted to EUR 9.8 million, an increase of EUR 0.3 million or 3 percent compared to 2023.

The costs of fairs, advertising and entertainment amounted to EUR 9.1 million, an increase of EUR 1.7 million or 23 percent compared to 2023.

Insurance premium costs amounted to EUR 6.6 million, which is EUR 0.2 million or 3 percent more than in 2023.

Security costs in 2024 amounted to EUR 2.6 million, which is EUR 0.4 million or 19 percent more than last year.

Costs of environmental protection services amounted to EUR 2.5 million, which is EUR 0.1 million or 5 percent less than in 2023.

Employee cost reimbursements amounted to EUR 1.7 million and are EUR 0.3 million or 24 percent higher than in 2023 due to higher training costs.

Other costs of services amounted to EUR 4.6 million, which is EUR 1.9 million or 29 percent less than in 2023.

Labour costs, which amounted to EUR 179.1 million, increased by EUR 18.5 million or 12 percent compared to the previous year. Rising labour costs are the result of several factors, both internal and external: inflation and rising costs of living, legislative changes, increased competitiveness in the labour market, and growing demands for additional knowledge and skills. In the parent company, labour costs also increased due to the aforementioned change in the service station operation model (from the CODO to the COCO model - as a result, costs of services decreased).

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Financial Overview

CODO – Company Owned Dealer Operated

COCO – Company Owned Company Operated

Despite lowering the number of employees, labour costs increased significantly due to regulatory changes, upskilling and changes in the service station operation model.

Costs

Depreciation costs amounted to EUR 99.9 million and were 2 percent or EUR 2.4 million higher than in 2023. They increased due to investments in the renovation of service stations and petroleum product storage facilities, as well as the expansion of energy generation operations (wind power plants) and mobility.

Other costs, which amounted to EUR 27.0 million, are EUR 24.3 million lower than the previous year. The remaining other costs decreased by EUR 33.8 million compared to the previous year, mainly due to lower accrued charges. Impairment of inventories was EUR 1.3 million lower than in the previous year, while net adjustments to financial assets and contract assets were EUR 6.7 million higher than the previous year. Impairment of goodwill was recognised in the amount of EUR 1.7 million. The effect of exchanging the interest in Plinhold d.o.o. for the interest in Geoplin d.o.o., Ljubljana, is EUR 3.4 million.

Net Gains and Risks

Net gains on derivatives amounted to EUR 17.8 million. The Petrol Group is exposed to price, volumetric and foreign exchange risks arising from operations with energy commodities (petroleum products, natural gas, electricity, LPG). The Petrol Group manages these risks primarily by coordinating the purchases and sales of energy commodities, both in terms of volumes and purchasing and sales conditions, thereby hedging the margin generated on energy commodities. Depending on the business model of the energy commodity, limits are set that limit exposure to price, currency and quantity risks.

The Petrol Group primarily uses derivative financial instruments to hedge the price of petroleum products. Partners are global financial institutions and banks or suppliers of goods, so the Petrol Group estimates that the risk of non-fulfilment of concluded contracts is minimal. When trading electricity, the Petrol Group also enters into derivative financial instruments with financial institutions, where the risk of non-fulfilment of concluded contracts is minimal, while also taking into account accepted market value limits. The value of financial transactions changes continuously depending on market price movements and the need to hedge the portfolio. The net gain on commodity derivatives should be monitored together with the energy commodity margin, while open derivative financial instruments for commodities will impact the level of gross profit or margin in the future.

Income and Expenses

Other income amounted to EUR 12.8 million or EUR 1.9 million more than in 2023. Other expenses amounted to EUR 0.8 million or EUR 0.6 million more than in 2023.

EBITDA

EBITDA amounted to EUR 314.2 million in 2024, which is EUR 41.6 million or 15 percent more than in 2023 and EUR 9.6 million or 3 percent more than planned.

EBITDA Structure by Product Group

In the EBITDA structure by product group, the share of fuels and petroleum products increased compared to 2023, mainly as a result of relaxed regulation on the Croatian market and cost optimisation, as well as the share of merchandise and services, where very good sales results were achieved in 2024. The share of the Energy and Solutions product decreased, mainly due to price fluctuations in the electricity market.

Operating Profit

Operating profit amounted to EUR 208.2 million or EUR 32.6 million or 19 percent more than in 2023.

Equity Accounted Investees

Share of profit or loss of equity accounted investees amounted to EUR 1.6 million, which is EUR 2.1 million less than in 2023.

Net Financial Expenses

Net financial expenses of the Petrol Group amounted to EUR 21.7 million, which is EUR 10.1 million more than in 2023. Net expenses from foreign exchange differences in 2024 were EUR 14.0 million higher than the previous year, while net interest expenses together with revenue from interest rate swaps were lower by EUR 2.5 million. Other net financial expenses in 2024 amounted to EUR 1.4 million less than in 2023.

Profit Before Tax

Profit before tax amounted to EUR 188.1 million, which is EUR 20.3 million or 12 percent more than in 2023. Net profit in 2024 amounted to EUR 145.9 million, which is EUR 9.4 million or 7 percent more than in 2023.

4.3 Financial position of the Petrol Group

Total assets of the Petrol Group amounted to EUR 2.4 billion on 31 December 2024, a decrease of 7 percent compared to the end of 2023. Non-current assets amounted to EUR 1.3 billion, which is 2 percent less than at the end of 2023, and short-term assets amounted to EUR 1.1 billion, down 13 percent year-on-year. The decline in the value of total assets is primarily a result of the movement in energy commodity prices and the optimisation of the working capital management process.

The most important item among non-current assets are tangible and intangible fixed assets and investment property, which total EUR 1.1 billion and are EUR 21.5 million lower than at the end of 2023. Right-of-use assets amounted to EUR 162.1 million at the end of 2024, which is EUR 31.3 million more than the previous year. Non-current investments in jointly controlled entities and associates amounted to EUR 2.2 million at the end of the year, which is EUR 57.5 million less than at the end of 2023, especially as a result of exchanging the interest in Plinhold d.o.o. for the interest in Geoplin d.o.o. Ljubljana. After the exchange, the Petrol Group became a 12.91-percent owner of Plinhold d.o.o. and the investment is reported under non-current assets as a financial asset at fair value through other comprehensive income.

Great attention is paid to the management of current assets, which account for 46 percent of the Petrol Group's assets. On the last day of 2024, operating receivables were 15 percent lower, or EUR 121.0 million, compared to the end of 2023, while inventories were higher by EUR 15.7 million, or 8 percent. The decline in operating receivables was mainly due to lower energy prices compared to the previous year.

As far as credit risk management is concerned, all official procedures of credit insurance companies are consistently complied with. The Petrol Group has collateralised 83 percent of all receivables that individually exceed the nominal value of EUR 100,000. Customer payments are monitored daily and, if necessary, measures to reduce credit risk are taken. Despite the negative impacts on the economy, payment discipline has not deteriorated significantly for now.

On the last day of 2024, the working capital of the Petrol Group amounted to EUR 173.1 million, which is EUR 85.3 million more than the previous year, when it amounted to EUR 87.8 million. Compared to the end of 2023, trade receivables decreased, and even more so, operating liabilities, while inventories increased slightly. Fluctuations in the prices of petroleum products and non-petroleum energy commodities have a significant impact on the movement of working capital.

Cash flows from operating activities amounted to EUR 282.9 million in 2024, which is EUR 62.1 million more than in 2023. The Petrol Group used the generated own assets for investment activities, dividend payments and loan repayments. The net financial liabilities to equity ratio (net debt/equity ratio) amounted to 0.4 on the last day of 2024, and to 0.5 at the end of 2023. The net debt/EBITDA ratio amounted to 1.4 at the end of 2024, while at the end of 2023 it amounted to 1.7. The leverage ratio amounted to 30 percent at the end of 2024, and to 34 percent at the end of 2023.

Despite more stable conditions on the energy market compared to previous years, ensuring an adequate liquidity structure was a high priority in 2024.

EUR 60.1 million were allocated for net investments in 2024, which is EUR 22.9 million or 27 percent less than in 2023.

Before the start of the energy crisis and the subsequent price regulation, the Petrol Group had been in a very good business and financial condition. Despite the challenging circumstances of the energy crisis, energy transition, regulatory interventions by states, and uncertainty regarding compensation for damage incurred, when assets allocated for investments in 2022 and 2023 had to be severely limited, our key development projects in 2024 were successfully implemented. The implementation of our strategic debt policy continued and net debt was reduced below the 2021 level. In the Petrol Group, all key indicators were maintained at acceptable levels, providing a financially sustainable foundation for future operations.

Despite the current stabilisation of energy prices and a lower cap on petroleum product prices, we expect 2025 to be just as demanding as 2024. The current geopolitical events and trade policy uncertainty indicate that the economic outlook might deteriorate compared to the forecasts in autumn. Regardless, we will continue to pursue our strategic objective to ensure business.

stability, also by maintaining an adequate debt-to- EBITDA ratio. Despite harsh business conditions, our capital policy, based on long-term maximisation of shareholder earnings, constitutes one of the most important objectives of our development strategy. The Management Board of Petrol d.d., Ljubljana, advocates a long-term stable dividend policy, which is also most in line with the long-term development targets of the Petrol Group. Business stability, further development of the company and energy transition remain the key strategic orientations despite the volatile global geopolitical situation.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

On 22 December 2023, S&P Global Ratings reaffirmed Petrol d.d., Ljubljana’s long-term BBB- and short-term A-3 rating with a stable outlook. The rating was reaffirmed in February 2025.

4.4 Activities for the compensation of damage resulting from energy price regulation in 2022–2024

With regard to the compensation for the damage resulting from the regulated prices of fuels in 2022, the Management Board of Petrol d.d., Ljubljana submitted proposals for amicable settlement of dispute to the State Attorney’s Office of the Republic of Slovenia and Petrol d.o.o. (again) to the State Attorney’s Office of the Republic of Croatia, in Slovenia in the amount of EUR 106.9 million and in Croatia in the amount of EUR 60 million.

In Slovenia, the proposal for amicable dispute resolution was rejected by the State Attorney’s Office, as a result of which an action for the compensation for the damage resulting from the regulated fuel prices in 2022 in the amount of EUR 106.9 million was brought against the Republic of Slovenia on 16 May 2023. The Republic of Slovenia rejected cooperation in mediation and the proceedings have continued before the District Court in Ljubljana.

Given that it was not possible to reach an amicable dispute resolution before the State Attorney‘s Office in the Republic of Croatia by the set deadline, we have continued the anticipated legal proceedings on the basis of the capped prices of fuels in the period between 16 October 2022 and 31 December 2023.

On 16 May 2023, Geoplin d.o.o. Ljubljana initiated an arbitration against Gazprom Export LLC on the grounds of a breach of the natural gas supply agreement. Due to a corporate guarantee being enforced by Gazprom Export LLC, Petrol d.d., Ljubljana joined Geoplin d.o.o. Ljubljana in initiating the proceeding. Pursuant to the decision made by the court of arbitration, the two arbitration proceedings must be conducted separately, hence the Geoplin d.o.o. Ljubljana proceeding against Gazprom Export LLC, continued within the initiated proceeding. Geoplin d.o.o. Ljubljana already filed the final arbitration claim on 13 May 2024 and Petrol d.d., Ljubljana will enter the arbitration subsequently.

On 7 July 2023, the Government of the Republic of Croatia passed a decree, setting a mechanism of compensation payments to natural gas suppliers for the difference between the purchase price for the relevant energy commodity and the price regulated by the natural gas pricing methodology. Geoplin d.o.o. (Zagreb) has already filed an application for the reimbursement in the amount of the price difference of EUR 20.9 million for the period of April–December 2023 and EUR 15.8 million for the period of January–March 2024. The claim is not recognised in the Petrol Group’s financial statements because it has not been confirmed by the market regulator.

5. Events after the end of the accounting period

On 13 February 2025, S&P Global Ratings affirmed Petrol d.d., Ljubljana’s long-term BBB- and short-term A-3 rating with a stable outlook.

The 39th General Meeting of Shareholders of Petrol d.d., Ljubljana was held on 14 March 2025. The notification on the General Meeting resolutions is available on the following link: 39th General Meeting of the Company.

6. Share and ownership structure

Compared to 2023, share prices on the Ljubljana Stock Exchange increased in general in 2024. This is also reflected in the SBI TOP index, which gained 33.0 percent of its value at the end of 2024 compared to the end of 2023 and ended 2024 at 1,666.6 points.

Petrol's share is listed on the prime market under the PETG symbol and has been listed on the Ljubljana Stock Exchange since 5 May 1997.

6.1 Petrol share price

Petrol's share was one of the most heavily traded shares on the Ljubljana Stock Exchange in 2024 and its price at the end of 2024 was 35.2 percent higher than at the end of 2023. As of 23 December 2024, the share of Petrol d.d., Ljubljana, accounts for a 19.98 percent share in the SBI TOP index.

Changes of the base index for Petrol’s closing share price and the SBI TOP index in 2024 compared to the end of 2023

The average closing price of the Petrol d.d., Ljubljana share, which amounted to EUR 28.56 in 2024, was 23.5 percent higher than the previous year. In 2024, the closing price of Petrol's share ranged between EUR 23.10 and EUR 32.30 per share.

In 2024, Petrol d.d., Ljubljana disbursed the highest dividend to date for 2023, amounting to EUR 1.8 gross per share.

6.2 Share turnover and market capitalization

The turnover generated from Petrol shares on the Ljubljana Stock Exchange in 2024, amounting to EUR 31.0 million, which also includes block trades (EUR 4.8 million), was 72.5 percent higher than the turnover in 2023. The turnover generated from Petrol shares, excluding blocks, amounted to EUR 26.2 million in 2024, which is 48.3 percent more than in 2023.

In the total stock market turnover on the Ljubljana Stock Exchange amounting to EUR 505.6 million (in 2023, it amounted to EUR 330.2 million), the turnover share of Petrol shares accounted for 6.1 percent, and, in the turnover generated from shares on the stock market in the amount of EUR 485.1 million (in 2023 it amounted to EUR 320.4 million), it accounted for 6.4 percent.

On the last trading day of 2024, Petrol d.d., Ljubljana was in the third place in terms of market capitalisation.

In terms of turnover, the share of Petrol d.d., Ljubljana ranked fourth among the shares on the Ljubljana Stock Exchange. On average, transactions worth EUR 2.6 million were carried out using Petrol shares per month.

The market capitalisation of Petrol d.d., Ljubljana, on the last trading day of 2024 amounted to EUR 1.3 billion, accounting for 11.0 percent of the market capitalisation of the stock exchange market.

6.3 Key financial indicators of the share

The Petrol Group's net profit attributable to the owners of the controlling company, per share (EPS) amounted to 3.37 EUR in 2024, and the Petrol Group's cash earnings per share (CEPS) amounted to 5.8 EUR. The capital gains yield of the share, calculated by comparing the closing share price at the end of 2024 with the closing share price at the end of 2023, amounted to 35.2 percent. This, together with the 7.7 percent dividend yield, accounts for a 42.9 percent gains yield of the share in 2024.

The ratio between the market price of the share at the end of 2024 and its book value at the end of 2024, which for the Petrol Group amounted to 23.40 EUR, amounted to 1.35 (P/BV) and was thus higher than at the end of 2023. The ratio between the market price of the share at the end of 2024 and the generated earnings per share of the

6.4 Ownership structure of the share capital

The share capital structure of Petrol d.d., Ljubljana, did not change significantly in 2024 compared to the end of 2023. The largest single shareholder is J&TBANKA AS– fiduciary account with 5,333,200 shares, followed by the Slovenian Sovereign Holding, d.d. (SDH, d.d.), with 5,299,220 shares, the Republic of Slovenia with 4,514,005 shares, and Kapitalska družba, d.d., with 3,452,780 shares. The largest single shareholders also include OTP banka, d.d.– fiduciary account, Erste Group Bank AG – fiduciary account, Vizija Holding, d.o.o., Vizija Holding Ena, d.o.o., MUSTAND ENERGY LIMITED and Perspektiva FT d.o.o.

Total shareholder return of the PETG share in 2024 (including capital and dividend yield) was 42.9 percent.

Ownership structure of Petrol d.d., Ljubljana at the end of 2024 and at the end of 2023

The number of total shareholders increased from 21,404 at the end of 2023 to 21,447 in 2024. At the end of 2024, foreign legal entities and individuals owned 12,613,357 shares, accounting for 30.2 percent of all shares. Compared to the end of 2023, the share of foreign shareholders increased by 0.2 percentage points.

Number of shares owned by members of the Supervisory Board and Management Board as of 31 December 2024

No. of Shares in % No. of Shares in %
Slovenski državni holding, d.d. 5,299,220 12.7% 5,299,220 12.7%
Republic of Slovenia 4,514,005 10.8% 4,513,980 10.8%
Kapitalska družba d.d. together with own funds 3,537,602 8.5% 3,594,617 8.6%
Domestic institutional investors and other legal entities 5,905,825 14.2% 6,030,856 14.5%
Foreign legal entities 12,571,823 30.1% 12,491,327 29.9%
Private individuals (domestic and foreign) 9,283,085 22.2% 9,181,560 22.0%
Own shares 614,460 1.5% 614,460 1.5%
Total 41,726,020 100.0% 41,726,020 100.0%

Petrol d.d., Ljubljana

Name and Surname Position Shares owned Equity share
Supervisory Board 8,937 0.0214 %
External members 7,177 0.0172%
1. Janez Žlak President of the Supervisory Board 0 0.0000%
2. Borut Vrviščar Deputy President of the Supervisory Board 7,177 0.0172%
3. Aleksander Zupančič Member of the Supervisory Board 0 0.0000%
4. Alenka Urnaut Member of the Supervisory Board 0 0.0000%
5. Mladen Kaliterna Member of the Supervisory Board 0 0.0000%
6. Mário Selecký Member of the Supervisory Board 0 0.0000%
Internal members 1,760 0.0042%
1. Marko Šavli Member of the Supervisory Board 1,760 0.0042%
2. Alen Mihelčič Member of the Supervisory Board 0 0.0000%
3. Robert Ravnikar Member of the Supervisory Board 0 0.0000%
Management Board 6,700 0.0161%

1. Management Board Members

Sašo Berger President of the Management Board 1,400 0.0034%
Jože Smolič Member of the Management Board 1,400 0.0034%
Marko Ninčević Member of the Management Board 1,400 0.0034%
Metod Podkrižnik Member of the Management Board 7,000 0.0017%
Drago Kavšek Member of the Management Board 7,000 0.0017%
Zoran Gračner Member of the Management Board and Worker Director 1,100 0.0026%

6.5 Other notes of Petrol d.d., Ljubljana

The prospectus of Petrol d.d., Ljubljana, compiled upon the listing of the shares of Petrol d.d., Ljubljana, is published on the company's website. All changes to the prospectus are published in the company's strategy, annual reports of Petrol d.d., Ljubljana, and public notices of Petrol d.d., Ljubljana, available on the company's website www.petrol.eu and the websites of the Ljubljana Stock Exchange, d.d., https://seonet.ljse.si.

Conditional capital increase

The General Meeting of Petrol d.d., Ljubljana, did not deliberate on a conditional capital increase in 2024.

Reserves for treasury shares

Petrol d.d., Ljubljana, did not buy back any treasury shares in 2024. On the last day of 2024, it held 614,460 treasury shares, accounting for 1.5 percent of the share capital. Out of which 494,060 are treasury shares acquired by Petrol d.d., Ljubljana, in the years 1997 to 1999. Their total procurement value as of 31 December 2024 amounted to EUR 2.6 million. As of that day, it was EUR 13.0 million lower than the market value of the shares. The remainder, i.e. 120,400 own shares, are shares that are considered treasury shares held by the subsidiary Geoplin d.o.o. Ljubljana upon its consolidation into the Petrol Group. The company may use the treasury shares in compliance with the company's articles of association.

Dividend policy to maximise long-term earnings

Our capital policy, based on long-term maximisation of shareholder earnings, constitutes one of the most important objectives of our development strategy. The company's management advocates a long-term stable dividend policy. This best suits the long-term development needs of the company, as it safeguards a higher level of predictability of the operating yield and a long-term stable share price. The target dividend policy in the strategic period 2021–2025 accounts for 50 percent of the group's net profit, taking into account the investment cycle, the indicators of the Group and achieved objectives.

In 2024, according to a resolution of the 38th General Meeting of Shareholders held on 23 May 2024, a gross dividend per share for 2023 in the amount of EUR 1.8 was disbursed.

Dividend overview for 2018–2023

Available profit: For 2024, the available profit of Petrol d.d., Ljubljana, in compliance with the Companies Act-1, amounted to EUR 86.6 million.

Regular participation in investor conferences and accessibility of information

Petrol d.d., Ljubljana, has established a regular program of cooperation with domestic and foreign investors. This includes public notices, one-on-one meetings and presentations, and public company presentations. Among other things, we regularly attend investor conferences organised annually by stock exchanges, brokerage houses, and various banks. In 2024, a few one-on-one meetings with investors and analysts were held. We participated in events organised by the Ljubljana Stock Exchange: in March and in September at the “Slovenian Stock Exchange.

Companies Online” webinar. In March, we presented our operations at the “Slovenian Capital Market Day” event organised by the Securities Market Agency. In May, we participated in the “NLB Investor Day” event and the “Trade on the Stock Exchange” event, in June in Zagreb and in November in Ljubljana at the “Investor Day of the Ljubljana and Zagreb Stock Exchanges - CEE Investment Opportunities” event, and in October at the “Financial Festival” event.

All information for investors, including the financial calendar, is published on the company's website in the For investors section. The contact person responsible for investor relations is Barbara Jama Živalič, who can be reached at: [email protected].

7. Risk and opportunity management

An effective risk and opportunity management system is crucial for successfully managing corporate risks in a challenging and rapidly growing business environment, which is why a system overhaul was actively pursued in 2024. The system was overhauled following the best professional corporate risk management practices which significantly affected the existing risk management system. The established system pursues the following key objectives:

  • to have better control over critical factors that may threaten the vitality of the Petrol Group:
Period Gross dividend per share (recalculation after the share split in a 1:20 ratio) Gross dividend per share
2018 EUR 0.90 EUR 18.00
2019 EUR 1.10 EUR 22.00
2020 EUR 1.10 EUR 22.00
2021 EUR 1.50 EUR 30.00
2022 EUR 1.50
2023 EUR 1.80

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

  • to have a centralised solution for the provision of comprehensive insights into the risk identification and assessment and measure management,
  • to gradually upgrade the corporate risk management culture:

Accordingly, the system will enable a comprehensive overview of identified corporate risks, both in terms of a precise financial assessment of each risk and of an overview of the most exposed risk groups and the actions introduced to manage them. The biggest changes to the new system are:

  • a more detailed recognition of risks in the identification step,
  • transfer of individual risk management responsibility to the owners of the processes from which the identified risks arise,
  • a changed risk assessment methodology, which is no longer based on classifying identified risks into predefined classes based on matrices, but rather on a detailed risk assessment calculated on the basis of the estimated probability or frequency of occurrence and the financial implications of risk materialisation in EUR.

The corporate risk management system continues to operate according to the principle of three lines of defence.

7.1 Activities carried out as part of the system overhaul in 2024

The implementation of the new system was introduced gradually, following the following steps:

  • changing the risk treatment and assessment methodology,
  • recognising/identifying risks,
  • identifying risk owners,
  • making an inventory of existing risk mitigation actions,
  • assessing open/remaining risks,
  • compiling a risk assessment,
  • creating a Risk Register with a risk assessment and already implemented actions,
  • revising internal regulations, such as the Rules of Procedure of the Corporate Risk Committee and the Corporate Risk Management Policy.

In 2024, all of the above steps were undertaken, with certain steps to be continued and completed in 2025.

At the level of individual organisational units, 411 risks were identified and consolidated into 83.

7.2 Managing the group of financial risks during the system overhaul

During the design of the new corporate risk management system, financial risks continued to be managed according to the established system, as, over the years, effective actions were introduced that reduce financial risks to or below an acceptable level.

Precisely identified risk management procedures are in place for financial risk management purposes. These procedures include:

  • defined limit systems,
  • an appropriate monitoring and reporting level regarding the exposure to individual financial risks,
  • established appropriate sectoral committees and colleges which have tasked with monitoring, supervising and making decisions regarding individual financial risks,
  • the use of derivative financial instruments to hedge against certain financial risks.

The established financial risk management system focuses on the economic environment and the unpredictability of financial and energy markets, and strives to reduce the volatility of the financial results of the Petrol Group. The system is subject to a continuous evaluation and upgrading, as the environment in which the Petrol Group operates is also constantly changing.

7.2.1 Price, volume and currency risks

The Petrol Group's business model includes energy commodities such as petroleum products, natural gas, electricity and liquefied petroleum gas, exposing the Petrol Group to price, quantity and currency risks arising from their purchase and sales.

The Petrol Group purchases petroleum products at market rates in foreign purchasing markets and pays for them mostly in USD, while sales are made in local currencies (mainly in EUR). This means that the Petrol Group is exposed to both a price risk – changes in the prices of petroleum products – and a currency risk – changes in the EUR/USD exchange rate – in performing its core activity. The Petrol Group maximises the management of the volume and price risks by harmonising purchase terms with suppliers on the one hand and sales terms pertaining to customers on the other. Any remaining open price or currency position is closed by entering into appropriate derivative financial instruments, primarily commodity swaps pertaining to the price risk and FRAs pertaining to the currency risk. The purpose of hedging with derivative financial instruments is to hedge the sales margin. Geopolitical conditions have generated uncertainty and certain challenges in the supply of petroleum products. Despite the harsh conditions, their uninterrupted supply was ensured.

The volatility of electricity and natural gas prices is caused by increased price and volume risks, which the Petrol Group manages using a diverse array of limit systems defined according to the business partner, risk value and volume exposure, and with appropriate monitoring and control processes. The Petrol Group also regularly monitors the adequacy of the limit systems used, updating and supplementing them where appropriate.

In addition to the risks arising from the changes in the EUR/USD exchange rate, the Petrol Group is also exposed to a certain extent to the risk of changes in other currencies that arise as a result of its operations in the region. The Petrol Group monitors open positions in currencies on a quarterly basis and makes decisions on actions that manage them.

7.2.2 Credit risks

The Petrol Group is exposed to credit risk when selling products and services to natural persons and legal entities. Effective credit risk management is ensured by regular procedures intended to approve the amount of exposure (limit) to an individual customer and active collection. Within the framework of receivables management, we try to maintain a high level of first-class collateral instruments as a sales approval condition (receivables insurance with a credit insurance company, bank guarantees, securities, corporate guarantees, sureties, liens). The insurance scheme enables the Petrol Group to adequately track its needs as pertaining to credit risk protection subject to market conditions. The Group systematically monitors receivables by portfolio, by region and organisational unit, based on the estimated credit risk, the level of collateral, and by customer. Centralised controls of received collateral and collection have also been introduced.

7.2.3 Liquidity risks

The Petrol Group is exposed to credit risk when selling products and services to natural persons and legal entities. Effective credit risk management is ensured by regular procedures intended to approve the amount of exposure (limit) to an individual customer and active collection. Within the framework of receivables management, we try to maintain a high level of first-class collateral instruments as a sales approval condition (receivables insurance with a credit insurance company, bank guarantees, securities, corporate guarantees, sureties, liens). The insurance scheme enables the Petrol Group to adequately track its needs as pertaining to credit risk protection subject to market conditions. The Group systematically monitors receivables by portfolio, by region and organisational unit, based on the estimated credit risk, the level of collateral, and by customer. Centralised controls of received collateral and collection have also been introduced.

In the last few years, the harsh conditions and thus a higher credit risk have been mainly caused by high energy prices and higher interest rates at which companies borrow. In the light of the foregoing, as well as of the potential forthcoming recession in the European Union, we at the Petrol Group continued to closely monitor increased risk indicator in 2024 and intensely communicated with our customers.

The Petrol Group is believed to manage its credit risk satisfactorily. Our assessment is based on the type of products we sell, market share, large number of customers, a large number of collateral instruments, a high volume of collateralised receivables and a low level of outstanding receivables. The insurance coverage rate for receivables of legal entities is at the level of 73 percent, with credit insurance and trade payables insurance dominating in terms of the scope of insurance (a total of 91 percent of insurance). Despite various challenges, the balance of outstanding receivables has not significantly deteriorated and remains at a satisfactory level of 13 percent.

7.2.4 Interest rate risks

Interest rate risk is the risk of a negative impact of changes in market interest rates on the operations of the Petrol Group. The exposure of the Petrol Group to interest rate risk arises from the potential change in the EURIBOR interest rate. Exposure to interest rate risk in the Petrol Group is monitored on an ongoing basis. 93 percent of non-current financial liabilities of the Petrol Group have been concluded with a variable interest rate linked to EURIBOR.

In 2024, the EURIBOR value was marked by a downward trend. The noticeable changes compared to 2023 can be attributed to various macroeconomic factors, including changes in the policies of the European Central Bank, which seeks to lower interest rates, and a decline in inflation. The average EURIBOR value in 2024 was lower than at the end of 2023.

The Petrol Group also manages its interest rate risk by entering into classic derivative financial instruments (interest rate swaps and forward interest rate agreements). The Petrol Group has concluded derivative financial instruments for 97 percent of its non-current loans with variable interest rates, thereby hedging its interest rate position.

The risk of interest rate changes in current financial resources is managed within the framework of the liquidity risks and policies of the Petrol Group.

7.3 Managing the group of operational risks during the system overhaul

During the design of the new corporate risk management system, operational risks continued to be managed according to already established actions within individual processes. Actions to mitigate operational risks have been established in the form of:

  • various internal regulations that lay down competencies, responsibilities and working methods,
  • due diligence pertaining to both internal and external regulations, the internal control system and appropriate control at the level of all three lines of defence,
  • regular communication between internal and external process stakeholders,
  • regular monitoring of legislation relevant to the Petrol Group,
  • identifying new needs resulting from rapidly growing environmental demands, harsh geopolitical conditions and other rapidly changing environmental factors,
  • various situation analyses,
  • creating stress scenarios and business impact simulations.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

7.4 ESG risks

In compliance with the new legislation, the ESG risks have been defined in a dual importance matrix and a special part of reporting dictated by ESRS standards. The report forms an integral part of the annual report.

7.5 Follow-up risk management activities

In 2025, we will continue to implement a corporate risk management system within the entire Petrol Group, following the steps already mentioned and:

  • establish an action plan of actions managing identified corporate risks,
  • define the highest acceptable level of identified risks (risk appetite), laid down by the Management Board of Petrol d.d., Ljubljana,
  • strengthen the culture of the materiality of an effective corporate risk management system within the Petrol Group,
  • regularly report to the Management Board of Petrol d.d., Ljubljana,
  • continue the digitisation of the corporate risk management system.

8. Operations by product groups

8.1 Fuels and petroleum products

In 2024, the Petrol Group generated EUR 3.2 billion in revenue from the sales of the fuels and petroleum products group, which is 6 percent less than the year before as a result of the lower fuel prices. The sales of petroleum products accounts for the largest share in this group.

The operations of the Petrol Group pertaining fuel and petroleum product sales in 2024 were impacted by the regulation of prices of certain petroleum products, which was introduced by countries in response to high energy commodity prices and arising inflation. This regulation was, however, less strict compared to the previous two years.

In 2024, the Petrol Group sold 3,867.3 thousand tons of fuels and petroleum products, which is 2 percent more than in the same period in 2023.

In the Slovenian market, it sold 1,521.8 thousand tons of fuels and petroleum products in 2024, which is 1 percent less than in 2023. The downward trend in heating oil sales continued, due to high temperatures during the heating season and the transition to alternative heating energy sources.

The sales of bitumen and petrochemicals also decreased. Retail sales of diesel fuel declined as transit customers preferred to visit service stations in Croatia rather than Slovenia due to lower prices. This was successfully compensated for with higher wholesale levels. Lower fuel prices in Italy along the Slovenian border also had a negative impact on sales at border service stations.

In SEE markets, the Group sold 1,490.0 thousand tons of fuels and petroleum products in 2024, which is 10 percent more than in the same period last year. Sales of diesel fuel in particular increased, both in retail and wholesale, in all markets. In Croatia, high growth was also driven by lower fuel prices compared to neighbouring countries, which led transit buyers to prefer purchases in this country instead of Slovenia.

In the EU and other markets, the Group sold 855.6 thousand tons of fuels and petroleum products in 2024, which is 3 percent less than in 2023. Especially in the first half of 2023, above-average sales were generated due to the shortage of petroleum products in most markets, which was a result of the embargo on imports from Russia.

In 2024, compared to 2023, in the structure of fuel and derivatives sales by market, the share of sales in SEE markets increased (from 36 to 39 percent), the share of sales in the Slovenian market decreased (from 41 to 39 percent), and the share of sales in the EU and other markets also slightly decreased (from 23 to 22 percent).

Of the total of 3,867.3 thousand tons of fuels and petroleum products, 48 percent were sold in retail and 52 percent in wholesale.

Sales of fuels and petroleum products in the Petrol Group in 2021–2024, in million tons

The Petrol Group retail network

At the end of 2024, the retail network of the Petrol Group comprised 595 service stations, of which

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

The Petrol Group service station network in 2021–2024

The Petrol Group has 318 service stations in the Slovenian market, a 58 per cent market share in terms of the number of service stations. Our competitive lies in our leading position on transit routes, with an emphasis on highway locations, key urban and border locations. Our biggest competitor is MOL & INA with a 25 per cent market share in terms of the number of service stations.

In the Croatian market, our market share in terms of the number of service stations at the end of 2024 amounted to 23 percent. The largest competitor still remains INA, followed by other companies such as Tifon, Lukoil and some smaller companies. In Bosnia and Herzegovina, Petrol has a 4 per cent market share in terms of the number of service stations, while its largest competitors in the retail sector are Nestro, Energopetrol, INA, Hifa Petrol and TI Oil. In Serbia, the largest retail networks are held by NIS, Lukoil, Knez Petrol, MOL and OMV, while Petrol's market share in terms of the number of service stations is one percent. In Montenegro, Petrol has a 12 percent market share in terms of the number of service stations, and its biggest competitors are Eko and INA.

Among fuels and petroleum products, LPG sales represent an important activity in the Petrol Group, having established a regional infrastructure that serves as the basis for our presence in the wider SEE region. The Petrol Group operates in LPG supply and the construction and management of LPG distribution networks. LPG business includes the sales of gas through networks and gas storage facilities, as well as the sale of autogas and gas in gas bottles, both through our service stations and in wholesale.

At the end of December 2024, the Petrol Group managed four LPG supply concessions in Slovenia. In Croatia, Petrol d.o.o. concluded LPG supply agreements in the cities of Šibenik and Rijeka. In both countries, LPG customers are also supplied through gas storage tanks, at service stations, and wholesale with autogas and gas in gas bottles. We also supply autogas and gas in gas bottles to retail and wholesale customers in Montenegro, and we have also continued to expand our business both through our own retail network and also in wholesale.

In Serbia, Petrol LPG d.o.o. Belgrade continued to expand its operations in the region, also by exporting LPG to North Macedonia, Bosnia and Herzegovina, and Montenegro. In the Serbian market, we are temporarily unable to use the terminal in Smederevo for gas supply with barges, which we do have, but have leased until we a concession to perform port activities is awarded. Until then, gas is delivered to the terminal by rail and road tankers.

Wholesale network

Our important competitive advantage lies in the high level of quality of products and services, provided for by an extensive network of sales representatives, adequate technical and advisory support, and efficient logistics. This allows us to operate quickly, efficiently and, above all, flexibly, which was especially evident during the pandemic, which greatly changed the purchasing habits of our business customers.

Efficient supply chains

Efficient supply chains constitute one of the key competitive advantages of the Petrol Group, therefore their optimal management materially contributes to successful operations. When purchasing fuels and petroleum products, we also ensured uninterrupted supply in all markets where we operate in 2024, despite the tough market conditions, taking into account the compliance of all purchased petroleum products with applicable European standards and regulations, and thus enabled uninterrupted sales of fuels and petroleum products through all sales channels.

8.2 Merchandise and services

In 2024, the Petrol Group generated EUR 636.3 million in revenue from the sales of merchandise and services, which is 11 percent more than the year before.

In the Slovenian market, EUR 415.2 million in revenue were generated in 2024 from the sale of merchandise and services, which is 5 percent more than in 2023. In SEE markets, it generated EUR 221.1 million in revenue from the sales of merchandise and services, which is 24 percent more than the previous year.

Sales of merchandise and services of the Petrol Group in 2021–2024, in EUR million

Revenue increased primarily in the tobacco and food sales segment, both in Slovenia and in SEE markets. A high volume of sales was largely influenced by the renewed assortment of merchandise, but also positively influenced by the renovation of the service stations, sales to transit customers who visited service stations in Croatia instead of service stations in Slovenia, and the closure of other stores in Croatia on Sundays.

Petrol's service stations are an increasingly popular destination for customers, as in addition to the standard fuel range, they also offer a wide range of products and services. The offer of coffee to go, soft drinks and sandwiches stands out in particular, while in the summer months there is also an increase in ice cream sales volumes. The offered food and hot drinks at our service stations is thus becoming an increasingly important part of our operations and also a leverage on the basis of which customers choose where to purchase both food products and fuels and other products from our range.

The increase in the volume of sales of merchandise and services is also attributed to our investment in professionalism and customisation of our product offering. The strategy of modernising service stations and expanding the gastronomic offering also plays an important role in this regard. In addition to the already well-known strategic collaborations with catering providers such as McDonald's and Marche, another world-famous brand was added to our Lom 2 rest area (towards Koper) in 2024 - Burger King. Our Coffee to go maintained its dominant position in its category in Slovenia and at the same time strengthened its presence in all other markets where we are present.

Revenue growth is also influenced by the attractive offer for Petrol Club members, who can take advantage of benefits such as purchases at discounted prices or even for free by collecting Gold Points. Customers also have the option of purchasing goods via the PetrolGO application, which allows for an easier collection of goods at a specified time, including the option of delivery to their vehicle.

An attractive range of goods, redesign of service stations and the friendliness of employees contributed to the high growth in sales of merchandise and services.

Major fuels and petroleum products and merchandise and services sales activities


In Slovenia, a minor remodelling of service stations was carried out with the aim of optimising the sales assortment and positioning and expanding the range of food products. 73 retail outlets were included in the “mini remodelling” project.

To ensure that service stations are adequately stocked with goods and to develop actions intended to manage a collapse in supplies in this area, digital tools were used to ensure better and faster control over inventory levels.

Great emphasis was placed on properly preparing the optimal number of employees at each service station in order to ensure sound operations at the service stations and generate appropriate business results.

Revised learning paths and training programmes for individual work areas were developed for the purpose of developing employees at service stations. Educational content was intensified in Croatia and programmes for new employees were carried out. Several online training courses aimed at improving the customer experience and increasing efficiency in the sales segment were carried out. Through various educational content, the key competencies of all employees to provide customer-tailored services were strengthened.

In 2024, our focus also lay on finding new technological and digital solutions to optimise business processes and administrative procedures, standardise and mainstream processes and reporting systems across all markets, and monitor operational efficiency.

As far as the sales to business customers is concerned, great attention was paid to maintaining good business relationships and successful cooperation with customers, which is especially important during the period of regulation of sales prices or fuel margins. New customers are being obtained, new products and package sales offered to existing ones, and appropriate financial insurance ensured.

In doing so, we take into account the fundamental principle of cooperation, which is based on understanding, flexibility, and helpfulness. We are becoming a connecting link in the broader ecosystem of the sales segments and industry. A comprehensive range of energy commodities and energy allows us to offer customers support in the transition from traditional energy sources (fossil fuels) to cleaner, more environmentally and health-friendly renewable energy sources using the latest energy solutions. A personalised offer is created based on the needs of each customer.

In our work, an effective customer relationship management (CRM31) tool is used, helping us effectively manage and build customer relationships. We also actively participate in public procurement.

Major investments and reconstructions in fuels and petroleum products and merchandise and services are listed in section 11. Investments.

8.3 Energy and solutions

By selling energy and solutions, the Petrol Group generated a revenue of EUR 2.3 billion in 2024, a year-on-year decrease of 25 percent, mainly due to the lower prices of electricity and natural gas on spot and futures markets and due to the lower electricity trading.

At the Petrol Group, we follow our strategy for 2021–2025, in which we have paved the way towards the energy transition to a green future. A big part of the transition falls to the team of experts in the Energy and Solutions segment and its products.

CRM – Customer Relationship Management

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

8.3.1 Energy solutions

The energy solutions product allowed us to generate EUR 45.9 million in sales revenue in 2024.

Energy renovation of facilities

We help public partners (municipalities, ministries, etc.) achieve a more efficient and environmentally friendly energy profile of buildings through energy performance contracting (EPC) - a public-private partnership model. After renovation, optimal energy use in all types of buildings by using renewable sources, while maintaining appropriate user standards. We find the most optimal energy renovation investment solution for public partners, take care of the entire renovation process, and then manage the facilities energy-wise and ensure savings during the contractual period.

In 2024, we continued to manage and optimise all facilities as part of signed concession agreements and prepare new sales and investment projects that will be implemented in 2025. In the Municipality of Novo Mesto, a major sales project that includes the implementation, maintenance and management of ventilation measures in three facilities, was implemented. In addition, smaller after-sales projects in existing projects were carried out.

Efficient public lighting

Old, energy-wasting public lighting fixtures in settlements are replaced with modern LED fixtures that direct light only where it is needed, which can reduce energy consumption by up to 80 percent. A holistic approach improves the quality of maintenance, general and traffic safety, and extends the lifespan of the public lighting system. At the same time, energy, maintenance and management costs and – most importantly – light pollution are reduced.

In 2024, public utility services were or energy management was performed in all existing public lighting projects in all markets where we operate. Contractual obligations for all existing projects are regularly fulfilled and the contractually guaranteed electricity savings are achieved or exceeded. An annex was signed with the municipality of Molve in Croatia to expand the concession and an investment was made. In addition, a public lighting replacement sales agreement was signed with the municipality of Ozalj in Croatia. In December, two major public lighting replacement agreements in Serbia were signed – in the city of Subotica and the municipality of Mali Iđoš. Both investments will be implemented in 2025. We are also continuing to develop new investment projects, which are scheduled for implementation in 2025.

Optimisation of drinking water supply systems

We strive to ensure quality water resources in cities and careful and efficient water management. We offer public partners comprehensive support in improving the efficiency of water supply system operations, help identify water losses, and advise on actions to reduce or maintain them at the achieved level. This provides operators with greater system reliability, improves their efficiency and operational safety, and reduces risks.

In 2024, our activities in the currently largest project to optimise the operation and ensure savings of drinking water in Croatia, whose clients are Vodovod Slavonski Brod and Hrvatske vode, continued. In Slovenia, activities to optimise drinking water supply systems were carried out in two projects, one of which has already been completed.

Optimisation of district heating systems

District heating constitutes a key factor in the green transition, as it stands for a long-term comprehensive social transformation whose objective is to achieve climate neutrality. Heat generation is one of the largest consumers of energy, rendering energy efficiency in this area one of our key targets. The main guidelines for the development of smart district heating systems include the reduction of energy consumption and cost efficiency, as well as actions to increase the use of renewable energy sources simultaneously accompanied by a digitisation of the system.

Forecasting and mathematical models allow us to determine the needs of district heating systems, facilitate a comprehensive and intuitive overview of the situation at all points of the network and assess the effects of systemic changes to the primary energy source. Digitalisation enables the reduction of heat losses, optimisation of system operating costs and ensuring maximum efficiency.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Supporting Decarbonization and Optimizing Network Operation

Smart networks are used to develop district heating systems as part of the infrastructure of smart cities which includes the smart generation, distribution and consumption of heat. State-of-the-art real-time analytics and software tools allow us to optimise measurable data.

In 2024, our contractual obligations to the client HEP (Croatian Electric Power Company) were fulfilled in district heating projects in Zagreb and Osijek, where regular maintenance work is carried out. The hydraulic model of the district heating system in Maribor was updated with new Geographic Information System (GIS) data.

The hydraulic model of the district heating system of Energetika Ljubljana was successfully transferred to the new version of the TERMIS software, also called District Energy. A two-year system optimisation agreement with Komunalno podjetje Velenje was signed.

We continue to monitor systems in Koper, Maribor, Železniki and Trbovlje, while activities are underway to prepare projects for three cities in Serbia.

Wastewater Treatment

Ensuring a safe and reliable water supply constitutes one of the key challenges of the 21st century. Therefore, the quality of water sources is of exceptional importance. We provide support to public partners (municipalities) in the construction and management of treatment plants used to treat industrial and municipal wastewater, and we manage concessions for the provision of the public utility service of municipal wastewater treatment.

Currently, the procedures for the II phase of the concession agreement, or the upgrade of the Sežana municipal wastewater treatment plant from 6,000 population equivalents (PE) to 12,000 PE, are underway, and is expected to be completed in 2025. We actively participate in the compilation of new projects in the industry and carry out after-sales activities for existing clients.

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Rounded-off Economic Zones

Petrol manages two rounded-off economic zones (SEZs), in Ravne and Štore, where electricity distribution, compressed air generation and distribution, drinking water distribution, and other energy services tailored to each location are provided. In Ravne, we also distribute cooling water, supply technical gases (oxygen, nitrogen, argon), and treat municipal water, while in Štore, we also manage the distribution of natural gas and the cooling, treatment, and distribution of industrial water. In both zones, special attention is paid to comprehensive energy solutions for all customers.

In 2024, our primary focus lay in compiling the status extension application and amendments for

Energy solutions for households and businesses

In the field of energy solutions for households, our primary focus lay on the heat pumps and solar power plants on offer, which significantly reduce energy consumption costs in residential housing and contribute to reducing the carbon footprint.

Our solar power plant systems include both classic and hybrid solar power plants with a built-in electricity storage. The “Petrol’s New Self-Sufficiency” product was introduced, intended for customers who did not take advantage of the annual billing system. In addition to the solar power plant and battery storage, the product also includes electricity for seven years, with Borzen subsidies amounting to up to 40 percent of the investment value available. Sales of air conditioners was also very successful in 2024.

In addition to sales, we focused on optimizing and digitising processes. A customer portal that allows project status monitoring and documentation exchange was introduced.

Public

Due to changes in legislation, especially the abolition of annual electricity billing and the introduction of a new network charge billing system, suppliers faced a significant decline in demand in 2024.

Industrial companies, especially energy-intensive ones, face numerous challenges in the energy sector, including volatile energy prices, security of supply issues, increasing sustainability targets, emission reduction pressures, the need to invest in their own energy systems, technological and management complexity, and the electrification of vehicle fleets.

The solution development trend pertaining to the generation and storage of electricity and the management of energy flows is directed towards a greater self-sufficiency, cost reduction and more reliable management of energy sources. Companies are increasingly combining advanced energy storage and management technology with sustainable generation to increase energy efficiency and reduce costs, while taking environmental requirements into account. In doing so, they need stable partners who can provide them with comprehensive energy solutions.

In the field of energy solutions for businesses, comprehensive solutions intended for efficient energy use, a greater share of renewable sources, and optimisation of system management, are developed. We help customers optimise manufacturing processes, reduce costs, and achieve carbon footprint reduction targets. Our comprehensive energy solutions render us their reliable partner on the path to sustainable transition and energy transformation.

Our comprehensive energy solutions, which include solar electricity generation, its storage, heating and cooling, energy renovation of buildings, efficient lighting, energy self-sufficiency and vehicle fleet electrification, bring about immediate savings to customers. Various financial models for implementing these solutions, allowing clients to invest their capital in their core business while taking an important step towards green transformation, are also on offer.

Efficient energy solutions are becoming increasingly complex, as synergistic effects must be sought across sectors. This renders the implementation process more complex, as it requires the appropriate configuration and management of energy systems. Customising a comprehensive solution to each customer, digitisation and streamlining processes are key factors for a successful sustainable transition without any additional risks.

Petrol provides its customers with a wide range of services, offering them comprehensive support in their sustainable transition and facilitating long-term and stable cooperation. The service includes:

  • energy consultancy,
  • compilation of technical energy efficiency optimisation solutions,
  • implementation of energy efficiency improvement, own energy generation and management projects,
  • investing in energy solution projects and ensuring energy supply,
  • maintenance and management of energy systems aimed at reliable and cost-optimal operation.

Petrol helps companies manage

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

8.3.1 Energy Solutions

In 2024, Petrol focused on developing new business models that enable customers to make a sustainable transition without a financial investment and with immediate cost reductions. These models provide a comprehensive service, whereby the customer does not need to make their own investments in energy systems, nor does it require additional staff capacity for their installation, operation and management. Nevertheless, the customer enjoys significant positive financial effects resulting from the installation and management of the systems and their exploitation in the balance responsible party and in the electricity market. Petrol invests in energy systems at the customer's location, installs, launches, operates and maintains them, and the customer immediately saves on electricity costs, ensures a long-term stable electricity price and acquires ownership of the entire system after the contractual period expires.

In 2024, Petrol developed numerous projects that included the construction of solar power plants and battery storage systems at customers' sites and their dynamic management. The total rated power of these appliances exceeds 50 MW.

8.3.2 Heating Systems

EUR 26.9 million in sales revenue were generated in 2024 from heating systems. Heating systems include district heating systems, where heat is produced in one or more boiler rooms and distributed to end customers via a heating network. District heating is considered the most reliable heat supply system, as it is environmentally and cost-effective. Facilities connected to a district heating system do not need their own heating source, which results in space savings. A district heating system provides users with greater energy efficiency, without the need to invest in their own heating and maintenance. Climate change encourages the connection to district heating through legislation, as exhaust gas and CO2 emissions are minimal. On the other hand, higher outdoor temperatures, together with energy efficiency actions, reduce heat consumption. The Petrol Group is the third largest heat distributor on the Slovenian market among more than 50 district heating providers.

Heat generation and distribution is a regulated activity under the Heat Supply from Distribution Systems Act (ZOTDS), regardless of the input primary energy source. According to the aforementioned law, heat distributors must ensure that systems are energy efficient and operate according to the highest environmental standards, which is achieved through various primary energy sources. In this case, at least 50 percent of the heat must be produced from renewable energy sources (Slovenian wood chips, pellets, geothermal energy) or at least 75 percent from high-efficiency cogeneration of heat and electricity (cogeneration). A combination of cogeneration and renewable sources is also possible, provided that they together attain an at least 50 per cent share.

District heating using renewable energy sources can significantly reduce greenhouse gas emissions.

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The most important task of a heat generator and distributor according to the ZOTDS is to ensure a reliable heat supply, which must be competitive in price, and customers must be treated in a non-discriminatory way.

In 2023, several heat pricing regulations were witnessed, mainly through the regulation of the price of natural gas as an input energy source. The Government of the Republic of Slovenia extended this regulation into 2024, where it was valid until 30 April 2024.

In 2024, we managed 36 district heating systems in the Slovenian market, out of which: 18 systems are organised as selection public utility services (concessions), for which concession agreements have been signed with municipalities, 15 systems are proprietary, and 3 operate as market distribution systems.

In 2024, the Petrol Group sold 120.3 thousand MWh of thermal energy for heating systems, which is 6 percent less than in the same period in 2023. This decline is mainly due to higher temperatures during the heating season compared to last year. Additionally, 15.2 thousand MWh of thermal energy were generated as part of energy solutions.

8.3.3 Natural gas distribution

The distribution of natural gas allowed the Petrol Group to generate 15.0 million EUR in sales revenue in 2024.

At the end of December 2024, the Petrol Group operated 31 natural gas supply concessions in Slovenia, and, in Serbia, we supply natural gas to the municipalities of Bačka Topola and Pećinci, as well as three municipalities in Belgrade. In the Croatian market, natural gas is distributed in some municipalities in the Krapina-Zagorje and Zagreb counties.

Activities in all markets were primarily focused on completing smaller infrastructure projects and maintenance, which will enable greater cost optimisation.

In 2024, we began designing a connecting gas pipeline in the municipality of Sežana to connect the distribution network to the gas transmission network, and we are in the process of obtaining consents and easements along the planned gas pipeline route.

In 2024, the Petrol Group distributed 1,278.8 thousand MWh of natural gas, which is 8 percent more than in 2023. Despite the mild winter and a noticeable shift of customers to other energy sources (as a result of the new Energy Act (EZ-2), which prohibits the installation of new condensing boilers for household users), higher consumption compared to 2023 on the Slovenian market was impacted by the connection of larger industrial users, and in the Serbian market by the connection of new users to the network during the expansion of the distribution network.

8.3.4 Energy commodities

The sales of energy commodities allowed the Petrol Group to generate EUR 2.1 billion in sales revenue in 2024.

Natural gas sales and trading

With record-breaking warm weather during the 2023/24 heating season and a decrease in industrial consumption, the situation in the natural gas market in Europe continued to deescalate in the first quarter of 2024.

In 2024, the trend of decreasing natural gas consumption among business and household customers continued. This is attributed to historically high temperatures, which have reduced heating demand, the shift to renewable energy sources (photovoltaics, heat pumps and biomass), and reduced demand from some large export-

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Electricity sales and trading

In 2024, the Government of the Republic of Slovenia continued to regulate electricity prices for household customers. In 2024, regulated prices were not in place for business customers, which instead concluded new energy agreements at lower market prices than those prevailing during the energy crisis, when energy prices had reached record levels. The Petrol Group provided appropriate support to our business customers, advised them on energy leases and helped them optimise costs.

In 2024, the last self-supply units could be connected to the network subject to annual billing (annual net metering). In response to legislative changes that have transformed the way energy is billed for new self-supplies, the Petrol Group has developed and introduced a new regular offering. A special offering that combines the sale of solar power plants, battery storage systems and the supply of electricity under promotional conditions has also been launched. With this, we have taken an important step towards combining our services into a single offering for customers.

As a reliable energy partner, we welcomed and supported all self-supply customers who needed additional information or support with the transition, and included them in our supply system, where they are provided with a reliable and flexible supply.

The new network charge act, which entered into force on 1 October 2024 after multiple postponements, introduced significant shifts to the electricity system, impacting both suppliers and customers. The suppliers had to adapt their systems to the requirements of the new network charge act, which required extensive testing and technical adjustments for the smooth implementation of network charge billing.

At the same time, the Petrol Group continued to offer a wide range of system services used to support the stability of the electricity system. We actively participate in regulating the electricity system and offer solutions that include system reserves and services to maintain a balance between electricity generation and consumption.

The Petrol Group continued to expand its presence in the region in 2024. In Croatia, we remained active in the electricity supply market, where more and more business customers trust us, thereby strengthening our position in this market. In addition, we have also started signing agreements in Serbia, where we are expanding our customer portfolio.

In Bosnia and Herzegovina, we are currently in the initial phase of market research and are laying the foundations for future operations, also seeking to develop long-term and stable relationships with business customers in this market environment.

In 2024, the Petrol Group invested intensively in the development of IT solutions and new tools that follow the digitisation of the electricity system. Investments were made in advanced data processing analytics, facilitating faster decision-making and process optimisation, thereby increasing business efficiency further. In addition, we have started using artificial intelligence (AI) to improve prediction models and predict market trends, facilitating better risk management and optimisation of energy purchases and sales. In 2024, the Petrol Group's electricity sales activities are also being expanded to SEE markets.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

8.3.5 Renewable electricity generation

Electricity generation allowed the Petrol Group to generate EUR 20.9 million in sales revenue in 2024.

Renewable energy generation is one of the key sustainable development areas globally and an important pillar of the Petrol Group's development as a modern energy group. Developments in energy markets confirm the importance of our proprietary, long-term, guaranteed sources of energy generation. At the same time, investments in renewable electricity generation constitute a concrete contribution to strengthening self-sufficiency and the energy transition of households, the economy and the state.

The Petrol Group manages two wind power farms in Croatia (the Glunča and Ljubač windfarms), which generated 149.1 thousand MWh of electricity in 2024. In addition, we are in the final phase of developing the third wind power plant (Dazlina wind power plant), the construction of which is expected to begin in 2025. A wind power plant project in Slovenia is also in the development phase.

In the first half of 2024, three solar power plants with a total capacity of 22 MW began operating as part of the Ljubač wind farm.

IT solutions and tools are key to a quick decision-making process and the optimisation of processes in the sale and trading of electricity.

In Bosnia and Herzegovina and Serbia, we manage six small hydroelectric power plants, which generated a total of 17.8 thousand MWh of electricity in 2024.

Solar power plants in Croatia (Suknovci, Vrbnik and Pliskovo) generated over 8 thousand MWh of electricity in 2024.

The Petrol Group is rapidly planning and continuing to develop new renewable energy source exploitation projects in Slovenia and the wider region. In addition to providing green energy, for which there will be an increasing demand, we exploit the potential of natural energy sources in an economically efficient and environmentally friendly way by managing, building and developing RES power plants.

8.3.6 Mobility

The sales of mobility products and services allowed us to generate EUR 6.2 million in sales revenue in 2024. The development of e-charging points stations and of new e-mobility solutions and services constitute an important pillar of Petrol's sustainable and innovative operations.

Charging service

The recognition of Petrol's network of charging stations is increasing throughout the region, both among domestic users and foreign charging service providers that enable their users to charge their vehicles in the Petrol network in Slovenia and Croatia.

By developing e-mobility services in 2024, the Petrol Group thus:

  • generated a transfer of almost 6 GWh of electricity used for charging electric vehicles,
  • recorded 6,300 new users,
  • completed a pilot payment terminal establishment project and successfully equipped 12 public e-charging points stations with payment terminals,
  • expanded the charging infrastructure network with 38 proprietary charging stations and 33 new charging stations managed by Petrol,
  • increased the volume of roaming recharges compared to 2023,
  • renewed the package offer for more affordable charging.

At the end of December 2024, we operated 564 charging stations across Petrol's entire charging network.

BARJE SERVICE STATION – THE FIRST OPERATING PAYMENT TERMINAL AT A MOTORWAY LOCATION IN SLOVENIA

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Charging infrastructure

The development of the charging infrastructure is based on key partnerships with the largest energy companies, municipalities and transport companies in Central and South-eastern Europe within the framework of EU projects co-financed by the European Commission.

In the final phase of the MULTI-E project, we are expanding our presence in the Slovenian and Croatian markets. In Croatia, all electrical construction work was carried out and 14 ultra-fast charging stations were installed at 8 locations in 2024. In Slovenia, ultra-fast charging stations were successfully launched at both Barje service stations, which are the first motorway locations in Slovenia with charging stations under a canopy. At the Supernova Novo mesto location, the charging park was updated with two additional ultra-fast charging stations. Ultra-fast charging stations were also installed at 7 motorway service stations. A new charging park was opened in the Supernova Maribor shopping centre, the first charging station in the P+R Dobrova parking lot was installed, and a charging park was also installed in the BTC shopping centre in Ljubljana, where 8 new charging points were added.

In April, we were selected to install high-performance charging points across Europe as part of the CROSS-E European cross-border electric charging project, together with Allego, Emobility Solutions and GreenWay. The project was selected by the European Commission and is financially supported by the Connecting Europe Facility (CEF). As part of the project, we plan to install up to 105 ultra-fast charging points at motorway locations in Slovenia and Croatia by the end of 2026.

FIRST-TIME TEST CHARGING OF LPP ELECTRIC BUSES AT THE BARJE – NORTH SERVICE STATION

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CEF – Connecting Europe Facility

The e-mobility infrastructure is being upgraded with ultra-fast charging stations.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Numerous additional activities intended to promote the development of sustainable transport and reduce our carbon footprint are carried out. In cooperation with Ljubljanski potniški promet, we carried out a test charging of two electric buses, BYD and Mercedes, at the Barje North service stations at charging stations with a power of 300 and 350 kW.

In addition to our own investments, we also expanded the charging infrastructure network through sales projects, selling 61 charging stations to private users, 56 charging stations to business customers in Slovenia and Croatia, and two charging stations in Serbia.

Mobility services

In terms of mobility services, we offer comprehensive mobility solutions and develop products related to new concepts and forms of sustainable mobility. The vehicle fleet management

service, long-term and short-term rentals vehicles and fleet management, analytics and optimisation services are offered in the market. Our objective is to provide companies, municipalities and individuals with the most efficient mobility they need at any given moment, and to be a partner in the green transition through vehicle fleet electrification.

In the area of long-term leases, cooperation with several municipalities was renewed and extended in 2024. We have entered into international cooperation with the SCMAdria group and expanded cooperation with companies such as Knauf Insulation, Schindler Slovenia, Metrob, Sava Medical, Pivovarna Laško Union and others. A partnership was established with Summit Motors, introducing a new approach to networking, which includes joint sales of operating lease services and cooperation in the sale of used vehicles through their sales network. Cooperation with Wilhelm Fricke SE was established in the Croatian market.

In the field of short-term leases, we have entered into new cooperation with Iskraemeco Middle East FZE, GP Sistemi, ReCatalyst and Pipistrel, which use our services to supplement their fleets. With a greater emphasis on monthly leases, we have successfully concluded several important partnerships, including with Butan Plin and the New Moment agency. We were also successful in being selected in a public tender for a 4-year collaboration with the Jožef Stefan Institute.

We have also established new partnerships with so-called "brokers" for international reservations, through which 37 percent more "car days" were sold in the main tourist season compared to the previous year. The short-term lease booking website (ATET/rent) has been upgraded with the option of prepayment and refund terms in various cancellation periods, allowing customers greater flexibility when renting vehicles. Website search energy optimisation activities (SEO33), used to expand recognition of our brand, allowed us to increase the number of online reservations by 20 percent compared to the previous year.

In 2024, we also started offering short-term vehicle rentals on the Croatian market. The first short-term vehicle rentals were made in the Croatian market during the main tourist season, and partnerships with brokers to obtain international reservations were entered into.

Mobility service developments

A digitised and integrated solution is essential for the strategic expansion of vehicle fleet management activities in domestic and foreign markets and, subsequently, for the activation of new, more advanced mobility services. Therefore, as far as the digitisation of vehicle fleet management and related mobility services is concerned, an agreement was signed in early 2024 for the development of a vehicle fleet management platform (FMG platform)34. Its production launch with the first key functionalities is expected in the second half of 2025.

9. Customers – the centre of our attention

Establishing relationships with customers and taking care of them is our priority, and new digital channels, an expanded range of energy products, and a personalised offer, we enable us to get even closer to our customers and provide them with an excellent customer experience.

9.1 A great customer experience is the foundation for future growth

By providing a great experience, customer relationships are developed, loyalty is increased, ambassadorship is promoted, we differentiate ourselves from the competition, and business results are improved. One of the key indicators of customer experience monitoring is the measurement of customer satisfaction. At the Petrol Group, customer satisfaction is monitored at all important points of contact and also in comparison with the competition.

33 SEO – Search Engine Optimisation

34 FMG platform – Fleet Management Group platform

The most important elements that affect customer satisfaction and consumer experience, in addition to the price and quality of products and services, which are a key element in all categories/areas, are the following:

  • accessibility and organisation of service stations and sanitary facilities,
  • friendliness and professionalism of employees,
  • quick and easy services,
  • rewarding customer loyalty,
  • managing claims.

All of the above factors, if they meet and exceed customer expectations, form an integral part of an excellent customer experience, which is one of our strategic foundations and sources of future growth.

The customer experience is monitored at all contact points.

9.2 Maintaining our customers' satisfaction

The 2024 customer satisfaction survey, which was conducted in Slovenia for the sixth consecutive year, showed that, despite increasing competition and the arrival of a strong global provider in the Slovenian service station market, our customer satisfaction was even increased compared to the previous year. Higher customer satisfaction was also recorded in other strategic areas: the loyalty programme, food on the go, contact centre, mobile application, energy commodities, solar power plants, and communication. This allows us to further strengthen the position of “custodian”, which was chosen and written into the company's strategy years ago. The greatest stability and high level of satisfaction over time are achieved through digital channels (applications, online store) and the contact centre, which are key points of contact for simplifying and speeding up processes and an important building block of an excellent customer experience.

In 2024, the satisfaction of Petrol's customers and competitors' customers in key areas, including in the Croatian and Serbian markets, was measured. The greatest satisfaction in the Croatian market was expressed by users pertaining to energy commodities and the Petrol GO mobile application, and a positive satisfaction trend has been recorded in one of the stronger points of the customer experience, i.e. the loyalty programme. We also managed to improve satisfaction with Petrol's customer loyalty programme in Serbia.

Growth in satisfaction with Petrol's loyalty programme in three strategic markets

Customer experience remains Petrol's strongest dimension of its brand image. The annual Brand Power survey carried out in five markets (Slovenia, Croatia, Serbia, Bosnia and Herzegovina and Montenegro), is used to track the perception of Petrol and Petrol's brands in the general public, while at the same time observing how our competition is positioned among our customers.

Petrol has been the strongest brand in Slovenia in terms of service stations for all years measured, and it has been strengthening in the last two years. Our leading brand image position was also maintained in 2024. An excellent customer experience continues to be one of the most important.

dimensions of the brand and will continue to be our key focus in the future. By doing this, we want to keep our competitive advantage in the perception of our customers, as customer experience has proven to be our strongest area for many years.

2024 brand image: Petrol and key competition

Even in SEE markets, where the Petrol Group is not a leading player, our strongest dimension remains customer experience, and employee friendliness achieves by far the highest awareness among all the attributes assessed.

Fuel quality is the most important attribute when choosing a service station provider and is also a hygiene factor that the consumer expects.

The most important factor impacting the brand image in the service station category is quality fuel. Petrol remains the provider the most customers attribute this to. The constant development of both the Q Max product and brand and successful communication have placed Q Max fuel far ahead of the competition in recent years, and, in 2024, this brand strengthened further. The greatest progress has been noticed in consumer awareness that the Q Max brand is reliable. Moreover, in 2024, the majority of drivers attributed the "extends the life of engine parts" property to Q Max fuel, and the share of consumers who believe that Q Max fuel provides the lowest fuel consumption also increased.

In March 2024, we received the prestigious award Selected Trusted Brand of the Year 2024 for the Q Max fuel.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

In recent years, the service station has become far more than just a place to fill up the tank of our cars. It becomes a place where we satisfy our needs, as drivers or passengers, or we visit it on foot or by bike, if it is nearby. One of the main reasons to visit is to indulge in great coffee and a quick meal on the go.

Slovenian customers prefer to go to a Petrol service station for coffee. In 2024, 10 percent more coffee aficionados chose Petrol as their favourite coffee stop than the year before. In addition to its high accessibility, they also highly rate its good taste.

The Fresh brand's freshly prepared food offering is known by 5 percent more customers than last year, and the offering was rated even better by customers than in 2023.

Petrol Archive

9.3 Monitoring and responding to customer comments

Transaction satisfaction has been measured for several years using the internationally recognized tNPS index. It allows us to monitor and respond to customer feedback on a daily basis at all key Petrol points of contact - across the entire retail network, in TipStop Vianor service workshops, the call centre and customer support, claims, when purchasing heating oil, in the energy centre and online store, where customers submit a rating after completing their purchase and after.

Picking up their package at the service station. In 2024, almost 33 thousand ratings were received.

tNPS rating at the most important points of contact

Customers are in contact with Petrol to the greatest extent at service stations, followed by the contact centre and customer support, purchasing heating oil and the eShop, claims, and TipStop Vianor service workshops. Customers are enabled to provide immediate feedback on satisfaction with our products, services or processes on an individual channel, and, at the same time, we respond to them and fix any problems.

Our total tNPS index (total score of all measured points of contact), calculated based on the ratings received, shows a high level of satisfaction and has remained stable in recent years, whereby, in 2024, it again reached its highest value in the last five years.

tNPS index from 2020 to 2024

Most improvements and creations of new products and services occur in response to different or changing customer needs. Petrol's research panel has been operating in Slovenia since 2018. The community consists of 4,500 members, who are often invited to participate in research on various topics. In 2024, their responses helped us understand their needs even better. In addition to our offering, they also co-created Petrol's image - they co-created our presence in the media and participated in decisions about the visual redesign of our service stations.

9.4 Brand loyalty - the Petrol Club

In 2024, we continued to upgrade the Petrol Club and communicate all the benefits of membership. The redemption of Gold Points increased by 8 percentage points. The number of loyalty points earned increased by 14 percent compared to 2023, and the number of points redeemed was 34 percent higher than in 2023.

In 2024, 8 catalogues containing the offering of the Petrol Club were published; the Petrol Club offering is also available in the Petrol eShop online store. Sales through the Petrol e-shop also increased in 2024.

In 2024, we also continued to offer more affordable products for loyalty members, which we offered in exchange for points in the Loyalty Stars and Gold Offering ranges. Throughout 2024, there was also a major prize game - The Game of All Games. By participating in 5 challenges of our big prize game, customers could win a Hosekra eco-mobile home, a Ford Turneo Courier car, as well as up to EUR 2,000 for shopping, spa treatments, and other prizes.

Satisfaction is maintained at a high level and it has been increasing in the last two years.

9.5 The Petrol GO application

The Petrol GO mobile application was launched in February 2024 and constitutes Petrol's key digital tool for improving the customer experience and optimising sales processes. It enables simpler and faster payments at Petrol service stations, and also serves as a tool for Petrol Club members to monitor their Gold Points and take advantage of the benefits.

Additional security improvements have been introduced: a security password for entering the application and biometric authentication for payments over EUR 50, with the option of a PIN code as an alternative. The one-stop purchase with the Petrol GO app allows Petrol customers to shop easily and quickly at service stations, without having to visit the cash register.

Renaming the app from “On the Go” to “Petrol GO” improved the recognition and visibility of the application in app stores (Google Play, App Store); the communication campaign: “Scan, Pay,

Win!”, which emphasizes speed and ease of use, enabled us to achieve a greater awareness of the application and the benefits of using it. In 2024, the Petrol GO application received the 2024 DIGGIT Gold Award for design and customer experience, the 2024 Marketing Excellence Award in all the announced categories and also received the title 2024 WEBSI in the Mobile Applications category, which places it among the best digital projects in Slovenia. The Petrol GO app is also a monitoring tool for Gold Points and claiming benefits.

9.6 Petrol's customer support and contact centre

Petrol’s Customer Support and Sales Contact Centre provides integral and friendly customer care services for retail customers and business partners. We are available year-round via various communication channels, such as telephone calls, e-mail, social networks, mobile apps, websites, a chatbot and video calls. We regularly monitor customer satisfaction and, based on the results, make improvements to increase the quality of our services. In 2024, customer satisfaction measurement again delivered good results and showed high satisfaction. We are committed to digitalising our business, developing self-service customer channels and going paperless, which contributes to a more sustainable business. In 2024, we started implementing AI-driven solutions into customer support processes to further optimise processes.

9.7 Handling customer complaints

Customer complaints, problems and other feedback are key to making improvements in every aspect of business operations. We have an efficient complaint handling system in place, which includes regular information on the handling procedure to customers. The process is fully digitalised. In 2024, customer support processes and standards were additionally improved and unified to further increase the service quality throughout the Petrol Group.

10. Quality control

10.1 Certificates and laboratory accreditations

Quality and excellence are embedded in the Petrol Group’s strategy for the 2021–2025 period, which is why we are constantly upgrading and expanding our quality management systems. Petrol has the following certified systems in place: quality management system (ISO 9001), environmental management system (ISO 14001), and energy management system (ISO 50001). In addition to the certified systems, the Company’s comprehensive quality management system incorporates the requirements of the HACCP food safety management system, of the ISO 45001 occupational health and safety system and of the ISO 27001 information security system.

In the Petrol Group, ensuring high-quality products and services is a fundamental principle of our operations. Thanks to our own know-how, experience and the introduction of best practices into our operations, we consistently maintain our status as a leading energy company in Slovenia, which has an important impact on the development of fuels and the implementation of new technologically advanced solutions in the Slovenian market. Our own Petrol Laboratory, which is accredited by Slovenian Accreditation with the accreditation number LP-002 in the field of testing (SIST EN ISO/IEC 17025) plays an important role in this process. At the end of 2024, Petrol Laboratory had 52 accredited test methods for petroleum product testing.

Public

An inspection body accredited by Slovenian Accreditation with the accreditation number K-040 in the field of inspection (SIST EN ISO/IEC 17020, Type C – General criteria for the operation of various types of bodies performing inspections) also operates as part of Petrol d.d., Ljubljana.

The inspection body has 19 accredited test methods for the inspection of flow and tyre pressure measuring devices, pressure equipment, the tightness of fixed steel reservoirs, the wall thickness of liquid fuel reservoirs, the measurement of dielectric strength of liquid fuel reservoir insulation and the measurement of noise in the natural and living environment.

Petrol d.d., Ljubljana has a Responsible Care Certificate for its activities relating to storage, logistics and the retail network of service stations in Slovenia, an FSC certificate for the sale of FSC-certified products, and an ISCC certificate for trading and storing renewable energy sources.

Overview of certificates and laboratory accreditations

  1. Petrol d.d., Ljubljana - Petrol Laboratory is accredited by Slovenian Accreditation with the accreditation number LP-002 in the field of testing (SIST EN ISO/IEC 17025).
  2. Petrol d.d., Ljubljana - Measurement and Environment Service is accredited by Slovenian Accreditation with the accreditation number K-040 in the field of inspection (SIST EN ISO/IEC 17020).
  3. Petrol d.d., Ljubljana is certified under the voluntary International Sustainability and Carbon Certification (ISCC) scheme for the sustainable supply of biofuels, which means a documented and traceable path from the production of raw materials to the final product.
  4. Based on the Report on the Implementation of Accepted Commitments from the World Charter of Responsible Environmental Management (POR), Petrol d.d., Ljubljana is the holder of the Certificate for the Responsible Environmental Management Programme for storage, logistics and retail service stations in Slovenia and related rights to the use of the logo.
  5. Petrol d.d., Ljubljana, is the holder of the FSC certificate for the production of wood chips for thermal energy. The FSC certificate, issued by the international non-governmental organisation Forest Stewardship Council, promotes environmentally sound, socially beneficial and economically viable forest management.
  6. The AEO36 certificate is issued by the Customs Administration of the Republic of Slovenia, which carries out supervision and inspection among the recipients of the AEO certificate. This certificate facilitates access to customs simplifications, fewer physical and documentary checks, preferential treatment in the event of controls, the possibility of choosing a place for such controls and the possibility of prior notification. To obtain an AEO certificate, it is necessary to meet a number of conditions and criteria: meeting security and safety standards, appropriate records of compliance with customs requirements and a reliable system of business and transport records that allow control and proven financial solvency.

36AEO – Authorised Economic Operator

Company Quality management system Environmental management system Energy management system Laboratory accreditations Other certificates
Petrol d.d., Ljubljana ISO 9001:2015 ISO 14001:2015 ISO 50001:2018 SIST EN ISO/IEC 17025:20171, SIST EN ISO/IEC 17020:20122 ISCC3, RC4, FSC5, AEO6
Petrol d.o.o. ISO 9001:2015 ISO 14001:2015
Petrol d.o.o. Beograd ISO 9001:2015 ISO 14001:2015 EN 45001
Beogas d.o.o. ISO 9001:2015

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

10.2 Research and development activities

At the Petrol Group, great attention is paid to improving the products and services offered to our customers, as well as to introducing new technologies and systems into our processes. It is also important to work towards sustainable development, including reducing the Group's environmental footprint, introducing cleaner technologies, and improving resource efficiency.

In 2024, the Petrol Group was active in the following R&D projects:

  • Development of chemical-resistant energy storage using hydrogen and batteries – the HyBReED project. The project is focused on the development and implementation of sustainable solutions that contribute to the further development of the energy sector. It will prove crucial for optimising energy generation and management, ensuring better reliability and efficiency of the electricity supply, and improving operational dynamics.
  • September 2024 marked the conclusion of the CyberSEAS project, aimed at improving the cybersecurity of power systems. The project increased the resilience of energy supply chains to disruptions, leveraging enhanced interactions, expanded stakeholder and consumer engagement models, the presence of legacy systems, and the increasing connectivity of energy infrastructures, data warehouses, and service providers.
  • In early 2024, the SEEDS project, in which we cooperate with 25 partners, was launched. The project is based on the consortium's extensive experience in developing, testing and valorizing solutions for the decarbonization of smart buildings in a real environment and introducing energy flexibility. It takes into account the fact that each building is unique and requires customised cost-energy efficiency solutions. The project will develop scalable and generic design and operation optimisation methodologies. Several proven heat pump technologies will be used and optimally integrated into buildings and the wider energy system.
  • Since the end of 2023, we have been actively involved in the LiftGreen project, in which, as leading partners in a consortium with Flycom Technologies d.o.o., we have been developing a platform that will enable easy access to key information about solar radiation at a selected location. In addition, we also encourage the installation of small solar power plants on the roofs of buildings. With the help of the platform, users will be able to quickly and accurately calculate the photovoltaic or "solar" potential of their roof without visiting an expert. An analysis of each location will allow them to calculate solar radiation, draw a sketch of the solar panel layout, and obtain an information quote.
  • Together with Dravske elektrarne Maribor, d.o.o., Petrol Geo, d.o.o., is participating in a geothermal power plant pilot project, which is based on an innovative method of generating electricity using a geothermal gravity heat pipe (Slovenian patent SI26426 A). A special feature of this technology is the closed refrigerant circuit, which requires only one dry well for operation.
  • The Atlantis EU project in the field of cybersecurity which aims at ensuring business continuity, while reducing cascade effects on the infrastructure, external business environment, other critical facilities and the population. The Slovenian pilot case focuses on protecting autonomy from systemic risks and ensuring business continuity in multimodal transport (port, rail and motorway), energy and information and communication critical infrastructure and services.

11. Investments

In 2024, the most funds were allocated to completing the construction of the Barje North and Barje South replacement motorway service stations and the redesign of the service stations at Petrol d.d., Ljubljana, and Petrol d.o.o. (Zagreb). In accordance with the adopted strategy of the Petrol Group until 2025, a large share of investment funds was allocated to energy transformation, namely the expansion of operations pertaining to energy and solutions in Slovenia and in the SEE markets. Investments were also made in expanding sales, upgrading and maintaining logistics capacities in Slovenia. A large part of the funds was also allocated to digitisation.

In 2024, a net amount of EUR 60,125.5 thousand was allocated for investments in property, plant and equipment, intangible assets, and non-current financial investments. In 2024, 24 percent of investments were allocated to the energy transition. The Petrol Group's investment capacity is limited due to fuel price regulation, which does not allow for sufficient financing of the green transition.

Structure of invested funds

Fuels and petroleum products, merchandise and services – retail

In Slovenia, the comprehensive redesign of the Ljubljana Barje AC South service station was completed in January 2024, and the comprehensive redesign of the Ljubljana Dunajska 70 service station was completed in April, boasting a new visual image and concept that reflects Petrol's vision of a service station of the future. The redesign of the interior of the Ljubljana Črnuče – Štajerska service station was completed in June and also included the redesign of the roofing system. In July and August, a comprehensive redesign of the service stations flooded in 2023 (Otiški Vrh, Nazarje and Žerjav) were completed, and, in August, a comprehensive redesign of the Ajdovščina Goriška service station was completed. In the last two months of 2024, the redesign of the Lipica and Štaloni service stations was completed, and the new construction of the Zreče service station began. The latter will be completed in February 2025.

SERVICE STATION DUNAJSKA 70, WITH A NEW VISUAL IMAGE REFLECTING PETROL'S VISION OF A SERVICE STATION OF THE FUTURE

Petrol Archive

In Croatia, the redesign of the Zadar Gaženica store was completed in July, and we rented the Split Zagorski put service station, which was also redesigned in accordance with Petrol's corporate identity upon takeover. The redesign of the Varaždin Gospodarska service station was completed in October. In November, the implementation of minor redesigns of several service stations, whereby the redesign of the Beli Manastir, Zagreb Velikogorička, Osijek Divaltova, Osijek Mandičeva, Virje, Majerje and Varaždin Optujska service stations has already been completed.

In Serbia, the redesign of the Petrovaradin service station was completed in April, and, in December, we rented the Inđija Vojvoda Putnik service station, which is redesigned in line with the new visual image of a Petrol's service station of the future. In Montenegro, the complete redesign of the Podgorica service station of Mitar Bakić was completed in July.

Fuels and petroleum products – logistics

At all Petrol warehouses, legally required risk reduction projects and projects are implemented, as well as minor investment and maintenance works to ensure the sound operation of installations. At the petroleum products warehouse Zalog, a documentation compilation project for major redesign and replacement of supply pipelines used for extinguishing/cooling and cooling rings for tanks was underway. Its implementation is foreseen in 2025. At the petroleum products warehouse in Lendava, the investment to ensure the storage and mixing of biofuels was completed in 2024. In the petroleum products warehouse in Rače, we as co-investors (in addition to the majority owner ZRSBR37) launched a major redesign project of the railway siding. At the petroleum products warehouse in Sermin, the floor of three tanks was redesigned, and project documentation for the renovation of the control room was compiled. We also began compiling project documentation and obtaining a building permit for the new parking lot. Minor investment and maintenance works were also carried out at all warehouses.

On account of its extraordinary scope and complexity, the Oil & Gas E2E Supply chain digitisation project has been implemented since 2023. The purpose of the project is to optimise and digitise petroleum product management processes, which constitutes the foundation for the next 20 years of the Petrol Group's operations. Special emphasis is placed on efficient and

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Digitised Logistics

The logistics platform, which automates and optimises energy commodities supply chain processes, will be upgraded further and introduced in all Petrol Group companies.

Energy Transition and Digitisation

As far as the generation of electricity from renewable sources is concerned, the development phase of the third wind power plant (Dazlina wind power plant) was completed at the end of 2024. Its construction is scheduled for 2025. A wind power plant project in Slovenia is also in the development phase. In 2024, as part of the Petrol Green project, in addition to 85 existing power plants, solar power plants were installed at an additional 43 own facilities in Slovenia, bringing the additional installed power of the power plants to 1.0 MW. The first phase of the Petrol Green project in Croatia and the first solar power plant in the Republic of Serbia are also in preparation.

Digital logistics solutions will allow us to improve business efficiency and reduce CO2 emissions by 10 percent.

Public

As far as energy solutions are concerned, two major public lighting replacement agreements in Serbia were signed as part of efficient public lighting – in the city of Subotica and the municipality of Mali Iđoš. These investments are foreseen to be implemented in 2025. The concession expansion project with the municipality of Molve in Croatia was completed. There were also projects for the market, including the implementation of heating stations, central control systems and expansions of various projects.

Mobility

As far as mobility is concerned, investments were made in the expansion of charging infrastructure and in vehicles for providing mobility services in all markets, which is presented in more detail in section 8. Operations by product groups.

Information Technology

The year 2024 was full of information-communication technology challenges. Critical infrastructure upgrades were implemented, key partnership agreements were renewed, all digitisation projects of the Petrol Group were actively participated in, the security of Petrol's IT ecosystem was improved and upgraded and the smooth operation of key IT solutions and infrastructure to support operations was ensured.

12.1 Planning and Management

As far as IT planning and management are concerned, a number of key improvements have been implemented with the aim of optimising processes and increasing transparency and efficiency. Focus was placed on improving traceability, accuracy and transparency in managing resources, costs and projects.

12.2 Performance of services

Introduction of key IT solutions

  • The implementation of the Oil & Gas E2E supply chain digitisation project, which constitutes an important step in the company's planned IT and digital transformation, continued. The new IT solution constitutes a key foundation for the Petrol Group to continue as a going concern. As part of the project, the company's key basic processes - from the procurement of petroleum products to logistics and sales have already been digitised and upgraded or will continue to be upgraded.
  • The overhaul project of Petrol's payment products also continued, as the implementation of this project constitutes a key foundation for the future operations of the entire Petrol Group.
  • We have been renovating, improving, optimising, digitising.
  • Solutions that facilitate the digitisation of internal processes in the Petrol Group (agreements, electronic documents and electronic signing) have been introduced and upgraded.
  • As far as the sales of energy commodities in a network (electricity, gas, heat) are concerned, numerous legal changes (price regulation, billing changes, reporting to the regulator) in IT solutions in both Slovenia and Croatia were implemented.
  • Fuel logistics have been subject to the development of a solution that will enable electronic data exchange with fuel depots.
  • Effective customer relationship management (CRM38) and customer support systems have been subject to further digitisation of processes that enable more efficient operations (support for B2B processes, contracting, support in the sale of energy solutions) and to an expanded use thereof in subsidiaries. B2B business support has also been subject to a content and technological overhaul of B2B commerce underway, which is expected to be completed in the first quarter of 2025.
  • In addition to larger projects, many smaller projects were also implemented in 2024, which significantly contribute to the digitisation of Petrol's operations.
  • IT infrastructure has been subject to the performance of several important upgrades and implementations with the aim of ensuring high availability and capacity of both the system and network infrastructures. These improvements are crucial to supporting business processes and ensuring a safe and efficient work environment. The central server was replaced, the Kubernetes platform was implemented, network security was increased, network visibility solutions were upgraded, and IT infrastructure was consolidated with the aim of reducing costs and improving the efficiency of IT operations.

12.3 Strategy and development

Implementation of key IT solutions with a focus on energy digitisation

  • A new Energy Market application that will provide business users with access to the electricity procurement market has been developed. The application will be available to users in early 2025. In addition, a lot of time has also been devoted to the strategy and development direction of the EPRM39 solution.
  • As part of the Petrol card system, a number of new solutions and products at service stations in the Petrol retail network, both in Slovenia and Croatia, have been supported. Numerous new partner service and product sales support services have been developed.
  • The technological, design and content redesign of the Na poti mobile application has been completed and the application has been transformed into the Petrol GO application. The extensive and comprehensive redesign was completed in February 2024. The redesigned application is now an excellent basis for further functional upgrades that will be implemented as part of our digitisation in the coming years. In 2024, our customers were also offered the new “Quick Purchases” functionality, which allows them to make a complete purchase at the service station via the Petrol GO application, without visiting the cash register.

12.4 Strengthening digital resilience

In 2024, the Petrol Group continued to implement strategic actions intended to strengthen digital resilience, which is crucial for the continuity of its operations and the trust of all stakeholders. Increased dependence on digital technologies and the complexity of IT systems have brought new challenges that require a comprehensive and proactive approach to risk management.

2024 was primarily marked by internal IT risks, which primarily include the possibility of unauthorised access to sensitive data, employee errors, and vulnerabilities in IT systems. The supply chain risk remains one of the key risks, as cooperation with various external partners and suppliers carries the risk of intrusion into our systems through vulnerabilities in third parties. In this context, an ongoing assessment of our suppliers' security practices has been conducted and stricter contractual cybersecurity obligations are being introduced.

The implementation of a large-scale cyber exercise, which tested the multi-layered protection of...

38 CRM – Customer Relationship Management

39 EPRM – Energy Portfolio Risk Management

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Our information systems, is highlighted as one of the most important IT achievements in 2024. The exercise simulated various cyber-attack scenarios and tested the responsiveness and coordination of internal teams and external partners. The results confirmed a high level of preparedness and highlighted additional areas for improvement.

By introducing an administrative access management solution, regular employee training, and secure cooperation with suppliers, a solid foundation for further strengthening IT security in the Petrol Group has been established. This way, a reliable and secure operation of our systems is secured and the interests of all stakeholders protected.

Many activities were also aimed at ensuring compliance with new regulatory requirements, such as NIS 2 and DORA. The new requirements impose more responsibility, especially on the company's management, and failure to comply therewith results in high penalties.

Aware that this is crucial for successful operations in a rapidly changing digital environment, Petrol remains committed to continuously improving IT security. Our actions not only reduce risks, but also strengthen the trust of our customers, partners, and employees. Our commitment and success in this area is also confirmed by the highest rating of A, which was awarded to us in June 2024 based on the Cybersecurity Rating awarded by Security Scorecard.

13. Corporate Social Responsibility

13.1 Sponsorships

For many years, the Petrol Group has been considered one of the biggest supporters of Slovenian and regional sports. Through sponsorships, we contribute to the development of various sports and to the success and development of athletes in Slovenia and the region. We sponsor individuals, clubs and associations, as well as sporting events at the national and international level. By supporting sports and culture, we strengthen the company's reputation and ensure a greater recognition of our own brands.

Petrol is traditionally present in winter sports, where our support for the Slovenian Ski Association stands out, through which all age categories of the national teams have been sponsored for many years. As a personal sponsor, we support a top athlete, currently the best competitor in technical alpine ski racing disciplines, Žan Kranjec. We also sponsored the 2024 FIS Snowboarding World Cup Rogla in 2024.

The Petrol Group is also present in summer sports. As one of the largest sponsors, we support the Basketball Association of Slovenia, the Football Association of Slovenia, the Volleyball Association of Slovenia, the Tennis Association of Slovenia, the Gymnastics Association of Slovenia, and numerous larger and smaller clubs, including the Cedevita Olimpija Basketball Club, the Jesenice Ice Hockey Skating Association, the Bravo Football Club, the Domžale Helios Suns Basketball Club, the Branik Maribor Tennis Club, and other smaller sports teams.

Just like in winter, we also supported several major summer sporting events, including the charity sporting event Night of the Dragon with Goran Dragić's farewell match at the end of his professional basketball career and the international ITF (International Tennis Federation) women's tennis tournament in Maribor. In addition, as the largest sponsor and name bearer, we have already supported the 30th international mountain speed race Q Max Petrol Ilirska Bistrica and several smaller sporting events, such as the Triglav Run.

The presence in numerous sports is rounded off by our sponsorship of the Olympic Committee of Slovenia and the Slovenian Olympic teams.

In addition to sports sponsorships, the Petrol Group also participates in professional projects in various energy and environmental activities. In 2024, sponsorship assets were also allocated for sustainable development, energy efficiency, e-mobility, management, marketing and public relations conferences, symposia and events: the 32nd Quality and Excellence Conference on Cooperation - the Development Axis of the Future, the 12th International Logistics Congress Supply Chains in Science and Practice, the Annual E2ZS Energy Squared Conference, the international professional DeMS (Slovenian e-mobility association) meeting, the 2024 Bled Strategic Forum professional meeting with a public debate, the Bloomberg Adria Green Future Summit, the 11th

Biennial of Slovenian Design

Brumen and others. As far as culture is concerned, we have been collaborating with the Ljubljana and Lent Festivals for many years and support the organization of cultural events at the Ljubljana City Theatre and Cankarjev Dom (the Veličastni- Magnificent subscription series). We were also active as sponsors in Croatia in 2024, where we supported the Croatian Football Federation, the Croatian Olympic Committee, and the Zadar Basketball Club.

13.2 Humanitarian projects

Through the Our Energy Connects project, we helped organizations and individuals in local environments for the fourteenth time. As part of the project, each service station in Slovenia proposes a humanitarian project, for which 200 EUR are allocated. In total, 135 different humanitarian projects implemented by non-profit organisations were supported. As part of this project, a total of more than EUR 860 thousand have been donated to local humanitarian projects over the past fourteen years.

In 2024, EUR 10,000 were donated to the Slovenian Forest Service and the assets were used to restore almost 20 hectares of Slovenian forests. Petrol employees also participated in reforestation campaigns.

Numerous cultural, sports and environmental projects are supported through sponsorships.

Public

At the end of 2024, we carried out a charity campaign Together we Help, in which we joined forces with members of the Petrol Club, the Red Nose Association and Slovenian Forest Service, with the aim of collecting gold points for a good cause – 1,000 children's smiles and 1,600 honey trees. The raised EUR 10,000 in assets will be used by the Red Nose Association for its activities in Slovenian hospitals, and by the Slovenian Forest Service to supplement naturally grown seedlings with seedlings of honey-producing forest tree species.

Petrol Archive

The Cent Collection charity campaign, which was first launched at the end of 2022 in cooperation with the Slovenian Ski Association to help young and talented Slovenian alpine skiers, was continued in 2024. The "Ski Cents" campaign was extended to the "Tennis Cents" campaign to help young and talented tennis players, and "Gogi Cents" to help young basketball talents. With the help of our customers at Petrol service stations who rounded up the amounts on their bills, we collected and donated more than EUR 220,800 to young talents in 2024.

As far as sustainability is concerned, Petrol Group employees have the opportunity to join the community of sustainability ambassadors, and we also have the Me Too! portal available. Its purpose is to foster closer environmental awareness and sustainable management cooperation and integration of employees in reducing the carbon footprint. Employees are called upon and obliged to follow efficient use instructions for heating, cooling, ventilation, lighting and electrical appliances, that the Be the Hero of Your Environment! campaign also contributes to.

Social responsibility

Social responsibility is implemented by actively supporting numerous humanitarian projects.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

Public

The Heart for the Planet sustainability label project, with which we began labelling sustainable products, services and activities in 2023 with the aim of allowing users to recognise them more quickly, continued in 2024. The symbol communicates that by choosing to support our fellow human beings, nature, or progress, we become an active participant in more responsible, sustainable behaviour and conduct.

In 2024, the Corporate Volunteering Week was extended to a longer period of time - it took place throughout the year. As part of the We Give Back to Society campaign, seven volunteer campaigns across Slovenia and two in Croatia were organised, attended by 42 employees. Petrol contributed 84 hours of their working time to these activities, and the volunteers additionally dedicated the same number of hours of their free time, thus further contributing to the successful implementation of the campaigns.

In 2024, we also participated in the Become Petrol's Santa Claus charity campaign, as part of which we joined forces with the Anita Ogulin & ZPM Association and our employees from Slovenia collected more than 200 New Year's gifts for children from socially disadvantaged backgrounds.

14. Internal audit

The internal audit functions organisationally as a standalone and independent support function within the parent company. Organisationally, it reports directly to the Management Board of the company, and, functionally, to the Audit Committee or Supervisory Board of the company. It operates at the level of the entire Petrol Group in compliance with the International Standards for the Professional Practice of Internal Auditing. A goal of the internal audit function is to provide objective assurance to the Management Board and the Audit Committee and to advise at all levels on the protection of assets, compliance with legislation and internal regulations, improvement of the risk management quality and efficiency and, consequently, the operations of the Petrol Group. This helps achieve strategic and business objectives in accordance with best practice principles.

The internal audit operates in accordance with the Internal Audit Charter and is guided by the principles of independence, professionalism, impartiality and ethical principles, which form the foundation of the auditing profession. The annual work plans and annual reports of the internal audit are approved by the Management Board, the Audit Committee takes note thereof, and the Supervisory Board of the company consents to the plans and reports. The internal audit regularly reports on its work to the Management Board and at least quarterly to the Audit Committee of the Supervisory Board. In 2024, it reported to the Audit Committee on a quarterly basis on all audits conducted, significant findings and proposed actions to improve the internal control and risk management system in the Petrol Group.

In 2024, in accordance with the International Standards for the Professional Practice of Internal Auditing, an external quality assessment of the internal audit function operation was carried out by an independent international audit firm. The results of the assessment confirmed that the internal audit in the Petrol Group operates in accordance with applicable standards. The external assessment also included a comparative analysis of certain indicators with comparable companies around the world. This showed that the internal audit in the Petrol Group is comparable, and in certain indicators, performs better than the internal audit departments of comparable companies around the world. The next assessment is scheduled for the end of 2029.

In 2024, the internal audit also implemented certain procedures that contribute to higher quality work:

  • Due to organisational changes, it compiled an updated set of areas/processes in the Petrol Group (“audit universe”).
  • Taking into account the importance of the process and the date of the last internal audit, it prepared a new risk assessment by process and organisational unit of the Petrol Group, based on the COSO framework methodology (internal control - integrated framework).
  • Based on the new risk assessment, the internal audit work plan for 2025 was approved by the Management Board and Supervisory Boards in December 2024.
  • It carried out internal auditing quality measuring procedures.

In 2024, internal audit strengthened cooperation with other internal assurance providers, mainly with the following sectors: corporate security and business control (pertaining to the commodity and financial monitoring of service stations, logistics and warehouses) and the Management Board Office and business compliance (pertaining to compliance with key regulations).

In 2024, the internal audit carried out 15 regular and extraordinary assurance audits (one audit was being completed as at 31 December 2024). The internal audits focused on the effectiveness and efficiency of processes, the adequacy of the internal control system, compliance with legislation and internal regulations, and the implementation of the Petrol Group's strategy. The internal audit ensured that the internal set objective achievement control system in the audited units was established, regularly operating and appropriate for the audited processes. It also proposed recommendations for improvements, whose implementation was checked regularly – in addition to regular and extraordinary audits.

In 2024, activities were also focused on updating key internal acts and internal audit methodology as part of preparations for the new Global Internal Auditing Standards, which enter into force in January 2025.

The work of Internal Audit in sustainability is detailed in the Sustainability Report.

40

COSO – Committee of Sponsoring Organizations of the Treadway Commission

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Business report

15. Companies in the Petrol Group

Mbills d.o.o. changed its name into Petrol Pay d.o.o.

As at 31 December 2024, the Petrol Group diagram does not include inactive companies.

The Petrol Group, 31 December 2024

Fuels and petroleum products Merchandise and services Energy and solutions Other
The parent company Petrol d.d., Ljubljana
Subsidiaries Petrol d.o.o. (100%)
Petrol javna rasvjeta d.o.o. (100%)
Adria-Plin d.o.o. (75%)
Petrol BH Oil Company d.o.o. Sarajevo (100%)
Petrol d.o.o. Beograd (100%)
Petrol Lumennis PB JO d.o.o. Beograd (100%)
Petrol Lumennis VS d.o.o. Beograd (100%)
Petrol Lumennis ZA JO d.o.o. Beograd (100%)
Petrol Lumennis ŠI JO d.o.o. Beograd (100%)
Petrol KU 2021 d.o.o. Beograd (100%)
Petrol Lumennis KI JO d.o.o. Beograd (100%)
Petrol Lumennis SU JO d.o.o. Beograd (100%)
Petrol Lumennis MI JO d.o.o. Beograd (100%)
Petrol Crna Gora MNE d.o.o. (100%)
Petrol Trade Handelsges.m.b.H. (100%)
Beogas d.o.o. Beograd (100%)
Petrol LPG d.o.o. Beograd (100%)
Petrol LPG HIB d.o.o. (100%)
Petrol Power d.o.o. Sarajevo (100%)
Petrol-Energetika DOOEL Skopje (100%)
Petrol Bucharest ROM S.R.L. (100%)
Petrol Hidroenergija d.o.o. Teslić (80%)
Vjetroelektrane Glunča d.o.o. (100%)
IG Energetski Sistemi d.o.o. (100%)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

1. Jointly controlled entities

  • Petrol Geo d.o.o. (100%)
  • Zagorski metalac d.o.o. (75%)
  • Petrol Pay d.o.o. (100%)
  • Atet d.o.o. (96%; 100% voting rights)
  • Atet Mobility Zagreb d.o.o. (100%)
  • E 3, d.o.o. (100%)
  • STH Energy d.o.o. Kraljevo (80%)
  • Petrol - OTI - Terminal L.L.C. (100%)
  • Geoplin d.o.o. Ljubljana (99.35%; 99.55% voting rights)
  • Geoplin d.o.o., Zagreb (100%)
  • Zagorski metalac d.o.o. (25%)

2. Associates

  • Plinhold d.o.o. (29.84%)
  • Knešca d.o.o. (47.27% of the company is owned by E 3, d.o.o.)

B. SUSTAINABILITY REPORT

INDEPENDENT AUDITOR’S REPORT

…………………………….125

ESRS 2 GENERAL DISCLOSURES

………………..……………….………130

BP-1 – GENERAL BASIS FOR PREPARATION OF THE SUSTAINABILITY STATEMENT

….130

BP-2 – DISCLOSURES IN RELATION TO SPECIFIC CIRCUMSTANCES

……………………..130

GOV-1 THE ROLE OF MANAGEMENT AND SUPERVISORY BODIES

…………………………132

GOV-2– INFORMATION PROVIDED TO AND SUSTAINABILITY MATTERS ADDRESSED BY THE UNDERTAKING’S MANAGEMENT AND SUPERVISORY BODIES

………………………..141

GOV-3- INTEGRATION OF SUSTAINABILITY-RELATED PERFORMANCE IN INCENTIVE SCHEMES

………………………………………………………………………………………………142

GOV-5– RISK MANAGEMENT AND INTERNAL CONTROLS OVER SUSTAINABILITY REPORTING

……………………………………………………………………………………………145

SBM-1 STRATEGY, BUSINESS MODEL AND VALUE CHAIN

………………………………..147

SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS

……………………………………..157

SBM-3 MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL

………………………………………………………………………………163

IRO-1 DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS MATERIAL IMPACTS, RISKS AND OPPORTUNITIES

…………………………………………………………165

IRO-2 – DISCLOSURE REQUIREMENTS FROM THE ESRS COVERED IN THE COMPANY’S SUSTAINABILITY STATEMENT

……………………………………………………………………..175

E ENVIRONMENT

……………………………………………………………..177

DISCLOSURES PURSUANT TO ARTICLE 8 OF REGULATION (EU) 2020/852 (TAXONOMY REGULATION)

…………………………………………………………………………………………177

KEY PERFORMANCE INDICATORS

………………………………………………………………………………181

E1 - CLIMATE CHANGE

……………...………………………………………204

E1.GOV-3 INTEGRATION OF SUSTAINABILITY-RELATED PERFORMANCE IN INCENTIVE SCHEMES

…………………………………………………………………………………………...205

E1-1 TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION

……………………………….206

E1.SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL

……………………………………………………….208

E1.IRO-1 DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS CLIMATE-RELATED IMPACTS, RISKS AND OPPORTUNITIES

…………………………………………….211

E1-2 POLICIES RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION

……….213

E1-3 ACTIONS AND RESOURCES IN RELATION TO CLIMATE CHANGE POLICIES

……….215

E1-4 TARGETS RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION

……….217

E1-5 ENERGY CONSUMPTION AND MIX

………………………………………………………….221

E1-6 GROSS SCOPES 1, 2, 3 AND TOTAL GHG EMISSIONS

……………………………………………………….223

E2 POLLUTION

…………...…………………………………………………...228

ESRS 2 IRO-1 – DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS MATERIAL POLLUTION-RELATED IMPACTS, RISKS AND OPPORTUNITIES

…………………………….228

E2-1 – POLICIES RELATED TO POLLUTION

………………………………………………………229

E2-2 – ACTIONS AND RESOURCES RELATED TO POLLUTION

E2-3 – TARGETS RELATED TO POLLUTION

E2-4 – POLLUTION OF WATER AND SOIL

E2-5 – SUBSTANCES OF CONCERN

E3 WATER AND MARINE RESOURCES

ESRS 2 IRO-1 – DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS MATERIAL WATER AND MARINE RESOURCES-RELATED IMPACTS, RISKS AND OPPORTUNITIES

E3-1 – POLICIES RELATED TO WATER AND MARINE RESOURCES

E3-2 – ACTIONS AND RESOURCES RELATED TO WATER AND MARINE RESOURCES

E3-3 – TARGETS RELATED TO WATER AND MARINE RESOURCES

E3-4 – WATER CONSUMPTION

E5 - RESOURCE USE AND CIRCULAR ECONOMY

ESRS 2 IRO-1 – DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS MATERIAL CLIMATE-RELATED IMPACTS, RISKS AND OPPORTUNITIES

E5-1 – POLICIES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY

E5-2 – ACTIONS AND RESOURCES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY

E5-3 – TARGETS RELATED TO RESOURCE USE AND CIRCULAR ECONOMY

E5-4 – RESOURCE INFLOWS

E5-5 – RESOURCE OUTFLOWS

S SOCIETY

S1 OWN WORKFORCE

ESRS 2 SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS

ESRS 2 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL

S1-1 – POLICIES RELATED TO OWN WORKFORCE

S1-2 – PROCESSES FOR ENGAGING WITH OWN WORKFORCE AND WORKERS’ REPRESENTATIVES ABOUT IMPACTS

S1-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR ITS OWN WORKFORCE TO RAISE CONCERNS

S1-4 – TAKING ACTION ON MATERIAL IMPACTS ON OWN WORKFORCE, AND APPROACHES TO MANAGING MATERIAL RISKS AND PURSUING MATERIAL OPPORTUNITIES RELATED TO OWN WORKFORCE, AND EFFECTIVENESS OF THOSE ACTIONS AND APPROACHES

S1-5 – TARGETS RELATED TO MANAGING MATERIAL IMPACTS, ADVANCING POSITIVE IMPACTS, AS WELL AS TO RISKS AND OPPORTUNITIES

S1-6 – CHARACTERISTICS OF THE UNDERTAKING’S EMPLOYEES

S1-8 – COLLECTIVE BARGAINING COVERAGE AND SOCIAL DIALOGUE

S1-10 – ADEQUATE WAGES

S1-14 – HEALTH AND SAFETY METRICS

S1-16 – REMUNERATION METRICS (PAY GAP AND TOTAL REMUNERATION)

S3 AFFECTED COMMUNITIES

ESRS 2 SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS

ESRS 2 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL

S3-1 – POLICIES RELATED TO AFFECTED COMMUNITIES

S3-2 – PROCESSES FOR ENGAGING WITH AFFECTED COMMUNITIES ABOUT IMPACTS

S3-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR AFFECTED COMMUNITIES TO RAISE CONCERNS

S3-4 – TAKING ACTION ON MATERIAL IMPACTS ON AFFECTED COMMUNITIES, AND APPROACHES TO MANAGING MATERIAL RISKS AND PURSUING MATERIAL OPPORTUNITIES RELATED TO AFFECTED COMMUNITIES, AND EFFECTIVENESS OF THOSE ACTIONS

S3-5 – TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS, ADVANCING POSITIVE IMPACTS, AND MANAGING MATERIAL RISKS AND OPPORTUNITIES

S4 CONSUMERS AND END-USERS

ESRS 2 SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS

ESRS 2 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL

S4-1 – POLICIES RELATED TO CONSUMERS AND END-USERS

S4-2 – PROCESSES FOR ENGAGING WITH CONSUMERS AND END-USERS ABOUT


IMPACTS

295

S4-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR CONSUMERS AND END-USERS TO RAISE CONCERNS

296

S4-4 – TAKING ACTION ON MATERIAL IMPACTS ON CONSUMERS AND END-USERS, AND APPROACHES TO MANAGING MATERIAL RISKS AND PURSUING MATERIAL OPPORTUNITIES RELATED TO CONSUMERS AND END-USERS, AND EFFECTIVENESS OF THOSE ACTIONS

298

S4-5 – TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS, ADVANCING POSITIVE IMPACTS, AND MANAGING MATERIAL RISKS AND OPPORTUNITIES

300

G GOVERNANCE

301

G1 BUSINESS CONDUCT

301

ESRS 2 GOV 1 – THE ROLE OF MANAGEMENT AND SUPERVISORY BODIES

301

ESRS 2 IRO-1 – DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS MATERIAL IMPACTS, RISKS AND OPPORTUNITIES

303

G1-1 – BUSINESS CONDUCT POLICIES AND CORPORATE CULTURE

303

G1-2 – MANAGEMENT OF RELATIONSHIPS WITH SUPPLIERS

307

G1-5 – POLITICAL INFLUENCE AND LOBBYING ACTIVITIES

309

G1-6 – PAYMENT PRACTICES

310

A PETROL GROUP-SPECIFIC TOPIC: CYBER SECURITY

311

CYBER SECURITY

311

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report 124

Public

DISCLOSURE OF THE LIST OF ESRS DISCLOSURE REQUIREMENTS THAT HAVE BEEN MET IN THE PREPARATION OF THE SUSTAINABILITY STATEMENT, BASED ON THE RESULT OF THE MATERIALITY ASSESSMENT (ESRS 2 IRO-2)

315

DISCLOSURE OF THE LIST OF DATA POINTS DERIVED FROM OTHER EU LEGISLATION AND INFORMATION ON WHERE THEY CAN BE FOUND IN THE SUSTAINABILITY STATEMENT

318

PricewaterhouseCoopers d.o.o.,

Cesta v Kleče 15, SI-1000 Ljubljana, Slovenia

T: +386 (1)5836 000, F: +386 (1) 5836 099, www.pwc.com/si

Matriculation No.: 5717159, VAT No.: SI35498161

The company is entered into the company register at Ljubljana District Court under Insert no. 12156800 per resolution Srg. 200110427 dated 19 July 2001 and into the register of audit companies at the Agency for Public Oversight of Auditing under no. RD-A-014/94. The registered share capital is EUR 34,802. The list of employed auditors with valid licenses is available at the company’s registered office.

Translation note: This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

Independent practitioner’s limited assurance report on Petrol d.d.’s consolidated Sustainability Statement

To the shareholders of Petrol d.d.

Limited assurance report on the consolidated Sustainability Statement

Limited assurance conclusion

We have conducted a limited assurance engagement on the consolidated sustainability statement of Petrol d.d. (the “Company”), included in Sustainability Statement of the Integrated Business Report (the “consolidated Sustainability Statement”), as at 31 December 2024 and for the period from 1 January 2024 to 31 December 2024.

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the consolidated Sustainability Statement is not prepared, in all material respects, in accordance with the Article 70 (č) of the Company’s Act (ZGD-1) implementing Article 29 (a) of EU Directive 2013/34/EU, including:

- compliance with the European Sustainability Reporting Standards (ESRS), including that the

process carried out by the Company to identify the information reported in the consolidated Sustainability Statement (the “Process”) is in accordance with the description set out in note IRO-1 (Description of the processes to identify and assess material pollution-related impacts, risks and opportunities);

  • compliance of the disclosures in subsection “Disclosures pursuant to Article 8 of Regulation 2020/852 (Taxonomy Regulation)” within the section “Environment” of the consolidated Sustainability Statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”); and
  • compliance of the presentation of the Consolidated Sustainability Statement with Article 58 of the ZGD-1.

Basis for conclusion

We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of historical financial information (“ISAE 3000 (Revised)”), issued by the International Auditing and Assurance Standards Board.

Translation note:

This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the Practitioner’s responsibilities section of our report.

Our independence and quality management

We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

The firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Responsibilities for the consolidated Sustainability Statement

Management of the Company is responsible for designing and implementing a process to identify the information reported in the consolidated Sustainability Statement in accordance with the ESRS and for disclosing this Process in note IRO-1 (Description of the processes to identify and assess material pollution-related impacts, risks and opportunities); of the consolidated Sustainability Statement. This responsibility includes:

  • understanding the context in which the Group’s activities and business relationships take place and developing an understanding of its affected stakeholders;
  • the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the Group’s financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term;
  • the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying appropriate thresholds; and
  • making assumptions that are reasonable in the circumstances.

Management of the Company is further responsible for the preparation of the consolidated Sustainability Statement, in accordance with the Article 70 (č) of the Company’s Act (ZGD-1) Article 29(a) of EU Directive 2013/34/EU, including:

  • compliance with the ESRS;
  • preparing the disclosures in subsection “Disclosures pursuant to Article 8 of Regulation 2020/852 (Taxonomy Regulation)” within the section “Environment” of the consolidated.

Translation note:

This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

Sustainability Statement

in compliance with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”);

  • compliance of the presentation of the Consolidated Sustainability Statement with Article 58 of ZGD-1;
  • designing, implementing and maintaining such internal control that management determines is necessary to enable the preparation of the consolidated Sustainability Statement that is free from material misstatement, whether due to fraud or error; and
  • the selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasonable in the circumstances.

Those charged with governance are responsible for overseeing the Group’s sustainability reporting process.

Inherent limitations in preparing the consolidated Sustainability Statement

In reporting forward-looking information in accordance with ESRS, management of the Company is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected.

Practitioner’s responsibilities

Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the consolidated Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the consolidated Sustainability Statement as a whole.

As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement.

Our responsibilities in respect of the consolidated Sustainability Statement, in relation to the Process, include:

  • obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome of the Process;
  • considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and
  • designing and performing procedures to evaluate whether the Process is consistent with the Company’s description of its Process set out in note IRO-1 (Description of the processes to identify and assess material pollution-related impacts, risks and opportunities).

Our other responsibilities in respect of the consolidated Sustainability Statement include:

  • identifying where material misstatements are likely to arise, whether due to fraud or error;

Translation note:

This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

Summary of the work performed

A limited assurance engagement involves performing procedures to obtain evidence about the consolidated Sustainability Statement. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material misstatements are likely to arise in the consolidated Sustainability Statement, whether due to fraud or error.

In conducting our limited assurance engagement, with respect to the Process, we:

  • obtained an understanding of the Process by:
  • performing inquiries to understand the sources of the information used by management (e.g., stakeholder engagement, business plans and strategy documents); and
  • reviewing the Company’s internal documentation of its Process;
  • evaluated whether the evidence obtained from our procedures with respect to the Process implemented by the Company was consistent with the description of the Process set out in note IRO-1 (Description of the processes to identify and assess material pollution-related impacts, risks and opportunities).

In conducting our limited assurance engagement, with respect to the consolidated Sustainability Statement, we:

obtained an understanding of the Group’s reporting processes relevant to the preparation of its consolidated Sustainability Statement by:

o obtaining an understanding of the Group’s control environment, processes and information system relevant to the preparation of the consolidated Sustainability Statement, but not for the purpose of providing a conclusion on the effectiveness of the Group’s internal control;

  • evaluated whether the information identified by the Process is included in the consolidated Sustainability Statement;
  • evaluated whether the structure and the presentation of the consolidated Sustainability Statement is in accordance with the ESRS;
  • performed inquiries of relevant personnel and analytical procedures on selected information in the consolidated Sustainability Statement;
  • performed substantive assurance procedures on selected information in the consolidated Sustainability Statement;
  • where applicable, compared disclosures in the consolidated Sustainability Statement with the corresponding disclosures in the financial statements and the Integrated Business Report;
  • evaluated the methods, assumptions and data for developing estimates and forward-looking information;
  • obtained an understanding of the Company’s process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the consolidated Sustainability Statement;
  • other procedures performed with respect to the Taxonomy Regulation disclosures.

Other matter

The comparative information included in the consolidated Sustainability Statement of the Company as at 31 December 2023 and for the period from 1 January 2023 to 31 December 2023 was not subject to an assurance engagement. Our conclusion is not modified in respect of this matter.

For and on behalf of PricewaterhouseCoopers d.o.o.

Primož Kovačič
Dušan Hartman
Director, Certified auditor
Certified auditor
Ljubljana, Slovenia, 9 April 2025

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

ESRS 2 GENERAL DISCLOSURES

BP-1– General basis for preparation of the sustainability statement

The sustainability statement has been prepared in accordance with the Corporate Sustainability Reporting Directive (CSRD), the Slovenian Companies Act (ZGD-1M) and the European Sustainability Reporting Standards (ESRS). The basis for disclosing environmental, social, and governance impacts, risks, and opportunities is the double materiality assessment of the Petrol Group. The parent company of the Group ensures that all its subsidiaries are included in a manner that enables credible disclosure of all material impacts, risks, and opportunities.

Disclosures in the Sustainability statement are presented for all Group members at a consolidated level, consistent with the financial statements, except for environment and the health and safety of our own workforce (part S1), where reporting is based on limited consolidation. This includes key companies in the Petrol Group: Petrol d.d., Ljubljana, Petrol d.o.o. (Zagreb); E 3, d.o.o.; and Geoplin d.o.o., Ljubljana (hereinafter referred to as the Petrol Group - limited consolidation).

The disclosures also cover the upstream and downstream parts of the Group’s value chain, where significant impacts, risks, and opportunities have been identified through the due diligence process and double materiality assessment in relation to specific stakeholder groups within the value chain. Our data covers Tier 1 suppliers and direct customers. These disclosures are provided in sections ESRS E1, S3, S4 and G1.

No specific information related to intellectual property, know-how, or innovation outcomes has been omitted from the sustainability statement.

BP-2– Disclosures in relation to specific circumstances

In our disclosures, we follow the medium- and long-term time horizons defined in the ESRS standards, except in the thematic disclosures in the ESRS E1 section, where they are specifically defined based on our strategic documents.

For the purposes of the integrated annual report, the terms sustainability statement and sustainability report are used interchangeably given their use in the CSRD and ESRS.

CSRD – Corporate Sustainability Reporting Directive

Slovenian: ZGD – Zakon o gospodarskih družbah.

ESRS – European Sustainability Reporting Standards

The following companies are excluded: Petrol javna rasvjeta d.o.o.; Adria-Plin d.o.o.; Petrol BH Oil Company d.o.o., Sarajevo; Petrol d.o.o., Beograd; Petrol Lumennis PB JO d.o.o., Beograd; Petrol Lumennis VS d.o.o., Beograd; Petrol Lumennis ZA JO d.o.o., Beograd; Petrol Lumennis ŠI JO d.o.o., Beograd; Petrol KU 2021 d.o.o., Beograd; Petrol Lumennis KI JO d.o.o., Beograd; Petrol Crna Gora MNE d.o.o.; Petrol Trade Handelsges.m.b.H; Beogas d.o.o., Beograd; Petrol LPG d.o.o., Beograd; Petrol LPG HIB d.o.o.; Petrol Power d.o.o., Sarajevo; Petrol-Energetika DOOEL Skopje; Petrol Bucharest ROM S.R.L.; Petrol Hidroenergija d.o.o., Teslić; Vjetroelektrane Glunča d.o.o.; IG Energetski Sistemi d.o.o.; Petrol Geo d.o.o.; Petrol Pay d.o.o.; Atet d.o.o., Ljubljana; Atet Mobility d.o.o., Zagreb; STH Energy d.o.o., Kraljevo; Petrol - OTI - Terminal L.L.C.; Petrol Skladiščenje d.o.o.; Geoplin d.o.o., Zagreb; and Zagorski metalac d.o.o.

We use metrics in our disclosures that include value chain data estimated from indirect sources in the Environment section, namely for the carbon footprint and energy consumption (E1), and for the calculation of municipal waste volumes – based on data from business partners (E5). These metrics are explained in more detail in their respective sections and are assessed as appropriate. Going forward, we will continue to enhance our methodologies and data to ensure the highest possible accuracy of our disclosure metrics.

Our disclosures do not contain any quantitative metrics or monetary amounts that are subject to a high degree of measurement uncertainty. Disclosures under the EU Taxonomy Regulation are also included in the sustainability statement.

Clarification regarding the EU taxonomy and changes to the indicator (KPIs) calculation methodology in 2024

In 2024, due to a stricter approach to compliance with minimum safeguards and activity alignment criteria, certain activities were reclassified into the Taxonomy-eligible category. Consequently, for fixed asset investments, we included the total amounts allocated to new construction (7.1 Construction of new buildings) and the renovation of existing buildings (7.2 Renovation of existing buildings), not just investments in energy-efficient equipment (7.3 Installation, maintenance and repair of energy-efficient equipment) and heat pumps (4.16 Installation and operation of electric heat pumps), which were implemented as part of broader renovations and upgrades. Investments in all passenger vehicles under activity 6.5 Transport by motorcycles, passenger cars and light commercial vehicles were also considered.

For revenue, the 2024 methodology excluded other operating income, covering only revenue from product and service sales related to customer contracts. As for operating expenditure, in 2023 both operating costs and purchase value were included. In 2024, the methodology was adjusted to cover only operating expenses related to services and materials used for fixed asset maintenance and leases.

The scope of consolidated companies remained unchanged compared to 2023 and includes Petrol, d.d., Ljubljana and its direct subsidiaries in Slovenia and Croatia. In 2024, Ekoen d.o.o. and Ekoen S d.o.o. were merged into Petrol, d.d., Ljubljana, while Vjetroelektarna Ljubač d.o.o. was merged into Vjetroelektrane Glunča d.o.o.

To ensure comparability, 2023 data were appropriately adjusted and are included in the comparative tables for 2024.

Disclosures by reference

For the sake of completeness of disclosures and a clear structure of the sustainability statement, certain disclosures are incorporated by reference (in accordance with ESRS 1, section 9.1 Incorporation by reference). These are listed in the table below.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Disclosure requirements and related data points Disclosures of other legislation Link in the report
Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 Regulation (EU) 2020/852 and related delegated acts (EU Taxonomy)
GOV-1 21 a – Number of executive and non-executive members Business Report, Chapter 3 Corporate Governance Statement
GOV-1 21 b – Representation of employees and other workers Business Report, Chapter 3 Corporate Governance Statement
GOV-1 21 c – Experience in relation to the Company’s sectors, products and geographical locations Business Report, Chapter 3 Corporate Governance Statement
GOV-1 21 d – Gender balance and other aspects of diversity taken into account by the Company Business Report, Chapter 3 Corporate Governance Statement
GOV-1 21 e – Percentage of independent board members Business Report, Chapter 3 Corporate Governance Statement
GOV-1 23 a – Information on sustainability-related expertise that the body as a whole either directly possesses or can draw on Business Report, Chapter 3 Corporate Governance Statement and Appendix C
GOV-1 23 b – Disclosure of how skills and expertise related to sustainability are linked to material

impacts, risks and opportunities

Business Report

Chapter 3 Corporate Governance Statement and Appendix C

SBM-1 40 a i – Description of significant groups of products and/or services offered by the company

Business Report

Chapter 8 Operations by Product Groups

SBM-1 40 a ii – Description of markets and/or customer groups served by the company

Business Report

Chapter 8 Operations by Product Groups

SBM-1 42 – Business model description

Business report

Chapter 1 Strategic orientation

E1.SBM-3 18 – Type of climate-related risk

Financial report

Chapter Environmental and climate risks 6.8

GOV-1 The role of management and supervisory bodies

The Petrol Group has established processes, controls and management procedures used for monitoring, managing and supervising sustainability matters. Chapter 3– Corporate Governance Statement – and Annex C disclose the composition and diversity of the management and supervisory bodies, their roles, responsibilities and experience in relation to the sectors, products and geographical locations of the Petrol Group, as well as access to expertise and skills regarding sustainability matters.

Petrol d.d., Ljubljana operates in compliance with the Companies Act (ZGD-1), which regulates the two-tier management system and defines the role of employee representatives on the Supervisory Board. In accordance with the Articles of association of Petrol d.d., Ljubljana, employees have the right to represent their interests on the Supervisory Board through employee representatives. The Articles of Association provide that three of the nine members of the Supervisory Board represent the employees. These employee representatives are appointed in accordance with the Employee Participation in Governance Act (Slovenian: ZSDU - Zakon o sodelovanju delavcev pri upravljanju).

Information on the identity of the management and supervisory bodies responsible for overseeing impacts, risks and opportunities

In more detail, the powers and responsibilities of the Management Board and Supervisory Board are disclosed in Chapter 3 Corporate Governance Statement.

One of the key building blocks of the Petrol Group's governance system is the impact, risk and opportunity management system. The company’s Management Board ensures an efficient governance system, the basis of which is an appropriate organisational structure. The Petrol Group has established a systematic approach to managing impacts, risks and opportunities, which includes governance at the level of individual companies, appropriate monitoring of impacts, risks and opportunities of individual companies within the Group, and the management of impacts, risks and opportunities at the level of the Petrol Group.

Petrol has certified quality management (ISO 9001), environmental management (ISO 14001) and energy management (ISO 50001) systems intended to manage the impacts.

The HACCP food safety management system, the ISO 45001 occupational health and safety management system and the information security management system in compliance with the SIST ISO 27001 standard are also included in the integrated quality system of the company. Responsible officers are appointed for all systems.

There are three lines of defence in place to manage risks and opportunities: internal control systems, key functions, and internal audit.

The first line of defence comprises directors and heads of organisational units, who identify, analyse and assess risks, and establish mechanisms to manage or reduce them to an acceptable level.

The second line of defence includes functions that monitor, based on various analyses, whether identified risks remain within the pre-defined boundaries. In the Petrol Group, this includes individuals responsible for risk management, various controllers, business compliance officers, fraud investigators, and personnel conducting reviews specific to the Group’s activities (key functions). The key compliance monitoring function is performed within the Board Office and Compliance Department.

The third line of defence is internal audit, which provides independent assurance. In addition, external auditors, external supervisors and other institutions — while not part of the Petrol Group — also play a significant role in the Company’s governance structure.

At the strategic level, the Management Board ensures that operational activities are aligned with the business strategy and sustainability vision. The ESG and Climate Change Committee serves as the Management Board’s strategic advisory body on sustainability and climate-related matters. In addition to the President and Members of the Management Board, permanent members of the Committee include directors of all areas where sustainability-related impacts, risks and opportunities have been identified. These areas are: sustainable development, quality and safety, human resources, the Board Office and Compliance, marketing and digital sales, corporate communications, strategy, internal audit, risk management, finance, energy generation, energy solutions and mobility, and strategic and technical procurement.

By overseeing and evaluating the effectiveness of impact, risk and opportunity management systems, the Supervisory Board contributes to compliance with international corporate governance standards and supports the Company’s long-term stability.

The link between the responsibilities of each body regarding impacts, risks and opportunities and the Company's powers, the mandate of the Company's Board and other related company policies.

Petrol's management of impacts, risks and opportunities related to sustainability is based on clearly defined responsibilities and powers of the Management Board and the Supervisory Board. Sustainability aspects monitored include:

  • Assessments and changes to sustainability aspects of strategy and business models: the Management Board strives to regularly address sustainability issues, including their alignment with long-term business goals, legislation and international standards.
  • Identification and assessment of material risks, opportunities and impacts: key sustainability impacts are addressed within the framework of certified systems and a double materiality assessment that combines financial and non-financial aspects. These are then aligned with existing policies and strategic targets.

51 ESG – Environmental, Social, and Governance

52 ESRS 2 GOV-1 22b

The Petrol Group has established a systematic approach to managing impacts, risks and opportunities, which includes governance at the level of individual companies.

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  • Policies, targets, action plans and dedicated resources: policies such as the Code of Conduct, anti-corruption policy, climate policy and business strategy provide the basis for defining targets and resources that support the implementation of sustainability plans.
  • Sustainability reporting: reporting is based on compliance with ESRS requirements, ensuring transparency towards stakeholders through annual sustainability reports and audits.

The Management Board and the Supervisory Board exercise oversight over sustainability aspects through formalised procedures:

  • Information: The Management Board regularly informs the Supervisory Board about sustainability-related progress, and, in the future, it also plans to inform about the results of materiality assessments and the resulting changes to the business strategy.
  • Consultation: Petrol has established an ESG and Climate Change Committee. For specific sustainability topics, Petrol will strive to establish special working groups and advisory committees and/or Supervisory Board committees, which will include internal and external experts.
  • Decision-making: Key decisions on changes to strategies, policies or resource allocation are approved by the Supervisory Board, which also includes the approval of the Sustainability report, which is integrated into the Business report.

Monitoring sustainability aspects is organised and formalised through specific mechanisms. The Management Board is responsible for implementing sustainability policies and coordinating activities across all business units, including operational processes for risk management and sustainable development. The Supervisory Board monitors the implementation of sustainability strategies and assesses their alignment with business targets. Monitoring is supported by annual sustainability reports and compliance assessments conducted in accordance with international corporate governance standards.

The role of management in governance processes, controls and procedures for monitoring, managing and controlling impacts, risks, and opportunities

53

Petrol's structure facilitates a comprehensive and coordinated approach to monitoring, managing and controlling impacts, risks, and opportunities at all levels of the organisation. The Management Board is responsible for the operational implementation and integration of impacts, risks and opportunities into business processes.

  • Strategy and sustainability targets: Members of the Management Board actively address ESG issues as an integral part of strategies and business plans, including the preparation of a long-term strategy for the 2026–2030 timeframe.

53

ESRS 2 GOV-1 22c

Petrol's management of impacts, risks and opportunities related to sustainability is based on clearly defined responsibilities and powers of the Management Board and the Supervisory Board.

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- Delegating: Responsibility for specific sustainability issues is assigned to individual members of the Management Board, who work in collaboration with management units (B-1) and functional areas such as finance, sustainable development, risk management, energy commodities trading and logistics.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Communication

Regular top-down communication between the management, B-1 level managers and other responsible functions ensure the alignment of sustainability targets with operational activities.

The ESG and Climate Change Committee acts as an interdisciplinary advisory body, bringing together internal experts from various fields, such as sustainable development, human resources, finance, procurement, and others. Although the ESG and Climate Change Committee does not play a direct role in corporate governance, it contributes to strategic support through the following activities:

  • Preparation of recommendations: The ESG and Climate Change Committee identifies key impacts, risks and opportunities and proposes solutions to the Management Board to comply with regulatory requirements (e.g. CSRD, ESRS).
  • Monitoring progress: The ESG and Climate Change Committee analyses the achievement of sustainability targets and coordinates activities across functions and organizational units.
  • Supporting the double materiality assessment: The committee participates in preparing sustainable practice analyses and recommendations, which the Management Board incorporates into strategic decisions.

The Supervisory Board

The Supervisory Board plays a key role in overseeing strategic sustainability issues, particularly from the perspective of alignment with the Company's long-term vision. Its tasks include the following activities:

  • Review and approval: The Supervisory Board approves key strategic documents, including the integrated annual report, which includes sustainability reporting.
  • Compliance monitoring: The Supervisory Board monitors whether the Company ensures compliance with legal and regulatory requirements related to sustainability issues and checks the alignment of long-term targets with the Company's business strategy.
  • Addressing key risks and opportunities: The Supervisory Board receives regular reports from the Management Board on key risks and opportunities, including climate, environmental and social challenges.

Petrol provides structured reporting lines and coordination between all relevant functions. The Management Board reports to the Supervisory Board, upon request, on key impacts, risks and opportunities, and on progress in achieving sustainability targets. Communication between the Management Board and the B-1 level and other internal functions ensures that sustainability parameters are consistently integrated into operational processes.

Senior management, the level of directors who report directly to the Management Board. The ESG and Climate Change Committee acts as an interdisciplinary advisory body, bringing together internal experts from various fields.

Key Functions

Key functions such as internal audit, sustainable development, compliance and risk management support the implementation of sustainability policies.

Oversight of Management Roles

Petrol systematically monitors and manages impacts, risks and opportunities through a multi-layered structure that includes the Management Board, the Supervisory Board and the ESG and Climate Change Committee.

The Management Board is responsible for designing and implementing sustainability plans and solutions, including monitoring and managing impacts in key areas. Members of the board participate in the work of the ESG and Climate Change Committee and directly oversee the achievement of sustainability-related targets.

The Company's Supervisory Board performs a supervisory function, which includes monitoring and approving the sustainability strategy and action plans, as well as reviewing the reports of the.

ESG and Climate Change Committee

The ESG and Climate Change Committee and other relevant business units. It also participates in consultations on key risks and opportunities related to sustainability issues.

The ESG and Climate Change Committee is a key strategic and operational coordination mechanism for sustainability matters. Its responsibilities include the following tasks:

  • Identification and strategic coordination of all areas related to ESG (environmental, social and governance aspects) and climate change.
  • Planning and implementing a sustainability strategy, including the preparation of sustainability action plans.
  • Monitoring and aligning ESG targets, both strategic and operational.
  • Reporting and stakeholder engagement, including updating the double materiality analysis and ensuring transparent reporting.
  • Managing key risks and opportunities related to sustainability and climate change.

The Committee is composed of permanent and specially invited advisory members, including the President and members of the Management Board, as well as senior management (B-1) and heads of key sectors, including sustainability, compliance, risk management, internal audit, marketing, energy solutions and procurement.

Control and Implementation Procedures

  • Coordination of organisational units: The ESG and Climate Change Committee coordinates the activities of all organisational units in preparing information and data used for reporting and monitoring the achievement of targets.
  • Risk management: The Committee participates in identifying and managing risks related to sustainability and climate change, which includes the use of methodologies developed by the Corporate Security and Risk Management sector.
  • Transparent reporting: The Company provides transparent communication about its sustainability achievements to stakeholders, including the public, regulators, and investors.

Petrol is striving to further improve its control mechanisms by establishing specific working groups and advisory committees that will include internal and external experts and further strengthen accountability and efficiency in achieving sustainability targets.

Reporting Lines to Management and Supervisory Bodies

Petrol has established initial mechanisms for monitoring, managing and reporting on impacts, risks and opportunities within the scope of environmental, social, and governance (ESG) matters. Reporting in these areas is currently conducted through existing structures and processes, with the Company actively working towards implementing a more comprehensive reporting system in line with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).

The Management Board is responsible for the operational and strategic direction of ESG matters. The ESG and Climate Change Committee supports the Management Board by regularly addressing key issues, including aligning ESG targets, identifying risks and opportunities, and making recommendations to achieve strategic goals.

The Supervisory Board periodically receives reports from the Management Board on progress towards sustainable strategic targets, key policies and initiatives, and the preparation of sustainability reports.

Petrol has established initial mechanisms for monitoring, managing and reporting on impacts, risks and opportunities within the scope of environmental, social, and governance (ESG) matters.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Until now, standalone sustainability reports have been issued separately every two years. The Petrol Group's annual reports have included shorter sustainability disclosures covering strategic directions, achievements, challenges, targets, and actions and programmes. These reports have been prepared in accordance with the GRI (Global Reporting Initiative) standards.

Integrating dedicated controls and procedures with other internal functions

Petrol has established an initial framework for managing impacts, risks and opportunities, based on a purpose-built system of controls and procedures. These mechanisms ensure the coordinated operation of various internal functions, ensuring a comprehensive approach to sustainable management.

Key controls and procedures for managing impacts, risks and opportunities focus on the following areas: monitoring ESG targets, risk management, and business continuity and crisis management.

Dedicated controls and procedures

Dedicated controls and procedures are directly linked to several internal functions, such as finance, strategic planning, internal audit, compliance, and sustainable development. The collaboration of these functions ensures that all aspects of impact, risk and opportunity management are effectively linked and support common targets.

Overseeing the setting of targets related to material impacts, risks and opportunities and monitoring progress towards them

The Company's Management Board is responsible for setting and implementing targets, while the Supervisory Board performs the function of a supervisory body and ensures that progress is monitored and that targets are consistent with the long-term strategy.

The Management Board and the ESG and Climate Change Committee monitor progress towards achieving the targets using specific performance indicators covering areas such as carbon footprint, energy efficiency and regulatory compliance. The Supervisory Board monitors progress through periodic reviews and additional reports as needed.

Appropriate skills and expertise to oversee sustainability matters

Petrol recognises that appropriate knowledge, skills and access to expert insight are crucial for the effective management of impacts, risks and opportunities related to sustainability matters. Members of the Management Board bring expertise from a wide range of fields, including energy, energy transition, finance, risk management, logistics, IT, sustainable development, business compliance, sales and strategic planning. Each member contributes to the Company’s sustainability goals from the perspective of their area of responsibility, as presented in Chapter 3, Corporate Governance Statement, and in Appendix C.

This expertise is also shared by other members of the ESG and Climate Change Committee.

which includes directors from areas where sustainability-related impacts, risks and opportunities have been identified.

The Members of the Supervisory Board combine interdisciplinary competencies across corporate law, finance, energy, energy transition, logistics, and governance. Members of the Management Board, the ESG and Climate Change Committee and the Supervisory Board regularly participate in internal workshops and training programmes dedicated to sustainability matters, as well as in conferences and events focused on topics such as climate change, energy transition, and circular economy. The Company works with external advisors who support regulatory assessments, sustainability risk analysis, and report preparation.

Dedicated controls and procedures are directly linked to several internal functions.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Petrol systematically tracks the latest developments in sustainability through a number of professional associations aligned with material impacts, risks and opportunities. It ensures that both strategic and operational management and supervisory bodies possess or have access to the appropriate sustainability knowledge required for high-quality decision-making. In doing so, the Petrol Group strengthens its sustainability resilience and long-term performance.

GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s management and supervisory bodies

Management and supervisory bodies are informed of material impacts, risks and opportunities at the end of each quarter, and for individual major projects directly when decisions are made (final as well as interim). At that time, they are also informed about the implementation of the due diligence and other results of the actions, metrics, and targets. Certified management system officers and risk managers inform the Management Board of the material impacts, risks and opportunities, implementation of due diligence, and the results and effectiveness of policies, actions, metrics, and targets. The Management Board informs the Supervisory Board on these matters.

Petrol ensures that impacts, risks and opportunities are thoroughly considered in strategy oversight, decisions on major transactions and risk management procedures.

ESG indicators form an integral part of the evaluation of investment projects. The Investment Committee, which includes Members of the Management Board and directors of relevant organisational units, evaluates investment projects, among other things, based on their financial, operational and ESG impact and strategic importance for the organisation. In addition to financial indicators, the Management Board also assesses the broader sustainable and strategic impacts of these projects.

The Management Board actively coordinates risk management, which includes financial, environmental, operational, and strategic risks. There is a special focus on sustainability issues such as the impacts of climate change, the energy transition and social aspects related to employees and the wider community. The Management Board works closely with the ESG and Climate Change Committee, which coordinates strategic and operational ESG targets, major investments, and ensures that impacts, risks, and opportunities are appropriately integrated into the decisions of the Management Board.

Petrol systematically tracks the latest developments sustainability through a number of professional associations.

The Management Board actively coordinates risk management, which includes financial, environmental, operational, and strategic risks.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Climate Change Committee meets at least twice a year to review, among other matters, material impacts, risks and opportunities; the implementation of due diligence; and the results and effectiveness of the policies, measures, metrics and targets presented for consideration.

The Supervisory Board complements the role of the Management Board with an emphasis on strategic oversight and key investment decisions. Projects above the threshold of EUR 5 million are subject to review by the Supervisory Board, which assesses their strategic contribution, financial indicators and broader ESG impacts, focusing on long-term sustainability targets. The Supervisory Board ensures that key investments and business decisions are consistent with the Company's business strategy, which, from 2026, will include sustainability targets as an integral part.

The Supervisory Board participates in the formulation of risk management policies and examines trade-offs between short-term business goals and long-term sustainability priorities.

The Management Board, the ESG and Climate Change Committee and the Supervisory Board addressed all impacts, risks and opportunities related to the company's long-term resilience, compliance with regulatory frameworks and contribution to a sustainability strategy that includes environmental, social, and governance aspects. A list of these key impacts, risks and opportunities that were addressed during the reporting period is presented in the table in Section ESRS 2 IRO 1.

The ESG and Climate Change Committee addressed the following impacts, risks and opportunities or sustainability topics during the reporting period:

  • achieving ESG targets and planning a new strategy until 2030.
  • creation of a low-carbon 2025-2030 strategic goal for Petrol d.d., Ljubljana, and/or the Petrol Group; Corporate Climate Management Action Plan.
  • ESG platform.
  • obtaining a new ESG rating.
  • ETS 2 scheme - innovations, impacts, risks.
  • presentation of CO2 footprint calculations (Petrol d.d., Ljubljana, excluding the Energy and Solutions unit - OE EiR; Petrol d.d., Ljubljana, including the Energy and Solutions unit - OE EiR; Petrol d.o.o.(Zagreb); Petrol group estimate).

GOV-3 - Integration of sustainability-related performance in incentive schemes

The General Meeting of Shareholders adopted the Remuneration Policy for Management and Supervisory Bodies. The remuneration of Management Board members consists of a fixed and a variable component. The variable component is based on the achievement of both financial and non-financial criteria that contribute to the short-term and long-term performance of the Group. These criteria are designed to support the business strategy, long-term development, and the Group’s sustainability. The criteria for the variable part of the remuneration are categorised into financial and non-financial. Non-financial criteria account for at least one-half of the total weighting. These include performance indicators reflecting the effectiveness of strategy implementation, business growth, stakeholder engagement, and progress toward environmental and social goals.

61 Slovenian: OE EiR – Organizacijska enota energija in rešitve

62 ESRS 2 GOV-3 29 a-e

The non-financial criteria for determining the Management Board's performance bonus are:

  • Effectiveness in implementing the business strategy: Assessed by evaluating the success of implementing strategic projects and streamlining operations, taking into account development activities, risk management, optimisation of procurement and logistics processes, innovation, corporate social responsibility, the upgrading of support processes and IT systems, and similar, with the aim of achieving long-term operational sustainability and the sustainable development of the Group.
  • Effectiveness in driving business growth: Assessed by evaluating the success of projects that enable the Petrol Group to continue growing and expanding its business, including the performance of investment projects, acquisitions, strategic partnerships, strengthening market positions, and entering new markets, with the aim of achieving long-term business growth.
  • Effectiveness in developing human capital: Assessed by evaluating the effectiveness of developing sustainability-oriented HR systems (recruitment, personnel development, education and training, competence development, remuneration, occupational health and safety, ensuring inclusion and respecting diversity), as well as ensuring an adequate personnel structure (organisational climate, employee engagement, appropriate educational structure, competent workforce) needed for strategy implementation.
  • Effectiveness in promoting sustainable development: Assessed by evaluating the success of the Petrol Group’s gradual transition towards operations with a progressively lower carbon footprint and greater overall energy savings, as well as the integration of sustainability commitments across the stakeholder chain, with the aim of strengthening corporate social responsibility.

The key non-financial performance indicators (KPIs) incorporated into incentive schemes include:

  • Effectiveness of implementing the business strategy: Assessed based on the success of strategic projects, process optimisation, and the implementation of sustainable innovations.
  • Effectiveness in driving business growth: Measured by the success of investment projects, the transition to renewable energy sources, and the expansion of sustainable solutions.
  • Effectiveness in developing human capital: Monitored through carbon footprint reduction, improvements in energy efficiency, and the integration of sustainability commitments across the stakeholder chain.
  • Effectiveness in promoting sustainable development: Monitored through carbon footprint reduction, improvements in energy efficiency, and the integration of sustainability commitments across the stakeholder chain.

Since the exact distribution between individual sustainability criteria is not separately quantified, it is estimated that approximately 50 percent of the variable remuneration is indirectly linked to sustainability targets. The proportion of variable remuneration tied to climate-related targets is disclosed in E1.

The approval and revision mechanism for incentive schemes operates on three levels. The General Meeting of Shareholders adopts the Remuneration Policy for the Management and Supervisory Bodies, which sets out the general framework for incentive schemes. The Supervisory Board monitors and decides on the implementation and potential changes to incentive schemes to ensure compliance with strategic targets and regulatory requirements. The Management Board is responsible for implementing remuneration policies in line with the business strategy and sustainability targets.

GOV-4 – Statement on due diligence

The table below provides a mapping of the due diligence information provided in the Sustainability statement.

Key elements of due diligence Paragraphs in the Sustainability report
(a) Integrating due diligence into governance, strategy and the business model ESRS 2 GOV-1, 21 to 23 ESRS 2 GOV-2, 26 a to 26 c
(b) Engaging with affected stakeholders at all key stages of due diligence ESRS 2 SBM-1, 45 to 45 d ESRS S1-2, 27 to 27 e ESRS S3-2, 21 to 21 d ESRS S3-3, 27 a to 27 d ESRS S4-2, 20 to 20 d ESRS S4-3, 25 a to 25 d

ESRS G1-1, 10 c

(c) Identification and assessment of adverse impacts

ESRS 2 IRO-1, 53 a to 53 h

ESRS E1-5, 37 to 39

ESRS E1-6, 44 to 52 b

ESRS S1-14, 88 a to 88 c

E2.IRO-1, 11 a-b, AR 9

E3.IRO-1, 8 a-b

E5.IRO-1, 11 a-b

ESRS S1-14, 88 a to 88 c

ESRS S4-5, 41 to 41 c

(d) Taking action to address these adverse impacts

ESRS E1-3, 29 a, and 29 b

ESRS E1-4, 34 a, and 34 b

E2-2, E2.MDR-A, 18

E3.MDR-A, 17, E3-2, 19

E5.MDR-A, 19

ESRS S1-5, 47 a to 47 c

ESRS S4-3, 25 a to 25 d

(e) Monitoring the effectiveness of these efforts and communicating

ESRS 2 SBM-1, 45 to 45 d

ESRS E1-5, 37 to 39

ESRS E1-6, 44 to 52 b

ESRS S1-2, 27 to 27 e

ESRS S4-4, 31 d and 32 c

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ESRS 2 GOV-4 30, 32 and AR 48

It is estimated that approximately 50 percent of the variable remuneration is indirectly linked to sustainability targets.

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GOV-5 – Risk management and internal controls over sustainability reporting

The Petrol Group manages risks related to sustainability reporting, which form an integral part of the broader compliance risks associated with sustainability matters. We recognise the growing demand for high-quality sustainability information. Investors, regulators and other stakeholders rely on these disclosures to make well-informed decisions. Ensuring the accuracy and completeness of this information is therefore critical—not only to meet stakeholder expectations, but also to manage the Group’s sustainability performance and foster trust-based relationships.

Risk management systems related to sustainability reporting are embedded within a robust internal control framework. These systems ensure a sound understanding of legal sustainability reporting requirements and stakeholder expectations. Each data disclosure has a designated data owner (responsible for data management) and a disclosure supervisor (responsible for overseeing data accuracy). Data owners are accountable for the completeness and integrity of the data, as well as for the accuracy of the related evaluations or calculations. Areas where adequate data governance is not yet in place have been identified through a gap analysis. These gaps will be systematically addressed over the coming years, prioritised by their materiality—either in terms of internal operations or the broader value chain.

The internal control system is structured across multiple layers. The first level of control (first line of defence) consists of disclosure supervisors, who review and approve the data and related results. The second level of control (second line of defence) includes both the Director of the Sustainable Development, Quality, and Safety sector, who oversees the application of the sustainability disclosure methodology in alignment with the business strategy, and the Compliance Department, which addresses key regulatory risks. The third line of defence is the internal audit, whereas final oversight is exercised by the relevant member of the Management Board.

In the first assessment cycle, the evaluation relied on internal audit findings, which rated each issue based on the potential impact and likelihood of occurrence. Each impact was assessed from two perspectives—reputational and financial—with the higher of the two scores used in the final risk assessment. This score was then multiplied by the probability of occurrence to calculate the final risk rating.

The main risks identified in connection with sustainability reporting include: incomplete digitalisation of databases; limited availability of data from the value chain, both upstream and downstream; the burden on key personnel responsible for reporting; the timing of information availability (e.g. delays in receiving certain environmental data from third parties); and challenges related to cross-sectoral coordination.

Petrol aims to reduce these risks through the following strategic approaches: training a broader pool of responsible personnel within the Group for sustainability reporting; providing IT support; and gradually achieving full digitalisation of relevant databases. At the strategic level, the Company also actively formulates proposals and measures to reduce the reporting burden, which is increasingly recognised as a factor affecting the competitiveness of the European Union’s economy.

Risk and internal control management in relation to the sustainability reporting process is embedded in the following internal functions and procedures:

  • periodic internal audit procedures,
  • annual review procedures of the ESG and Climate Change Committee,
  • internal control and assurance procedures, such as audits under ISO 14001, ISO 9001, ISO 50001, and risk assessments related to information security management, among others.

Findings from risk assessments and internal control reviews are reported at least twice per year to the ESG and Climate Change Committee; annually to the Management Board of the parent company, Petrol d.d., Ljubljana; at least four times per year to the Audit Committee of the Supervisory Board; and once a year to the Supervisory Board.

SBM-1 Strategy, business model and value chain

The core product and service groups of the Petrol Group are: hydrocarbons (fuels and petroleum products), merchandise and services, and energy and solutions. Within the “energy and solutions” segment, we co-create opportunities arising from the energy transition. As an integrator of energy solutions, Petrol enables customers to make optimal decisions regarding the type and quantity of energy. We are also the first choice for shopping on the go. Further information is provided in the Business Report, Chapter 4.2 Operations of the Petrol Group.

The Group’s key markets are Slovenia and Southeast Europe, where we hold the largest market share, while we are also expanding our presence in other European markets. In Slovenia, we are strengthening our position as a leading energy company and strategic partner in the energy transition. In Croatia, through our sales network, we are expanding our customer base for energy commodities and energy transition services, while also investing in electricity generation from renewable energy sources. In Serbia, we are increasing our market share in energy commodities sales. We will continue to strengthen our sales network across the region, supporting more sustainable operations through network and logistics optimisation. With new digital channels, an expanded portfolio of energy commodities, and a personalised offering, we are both aligning with consumer trends and helping customers transition from traditional energy sources to cleaner renewable alternatives.

At the end of 2024, the Petrol Group and its managed service stations had 5,945 people, 45% of whom were employed outside Slovenia. More detailed information about employees is disclosed in S1.

As outlined in the value chain section below, we also operate in the oil and petroleum products value chain and in the natural gas value chain. No prohibited products or services are offered in any of our markets, as the Petrol Group ensures full compliance with applicable legislation in all countries of operation. The Petrol Group does not engage in the production of chemicals, controversial weapons, or tobacco cultivation or manufacturing, nor is it active in coal-related.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Activities

The Petrol Group’s total revenue for 2024, after limited consolidation, amounted to EUR 5.9 billion. The breakdown of total revenue by material ESRS sectors will be disclosed for 2025. In the financial statements, we disclose total revenue by four product groups: fuels and petroleum products, merchandise and services, energy and solutions, and other. In 2024, the Petrol Group generated EUR 4.2 billion in revenue from the sale of fossil fuels, which represent the majority of the Fuels and Petroleum Products and Natural Gas Sales and Trading product groups. Revenue from the Fuels and Petroleum Products group, primarily composed of oil-based products, totalled EUR 3.2 billion, while Natural Gas Sales and Trading contributed an additional EUR 0.9 billion. Revenues from taxonomy-eligible economic activities related to fossil gas are disclosed in the section Disclosures under Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation).

Sustainability-related targets

In implementing its fundamental sustainable development guidelines, the Petrol Group follows the targets of the EU Green Transition and the United Nations Sustainable Development targets, or the 2030 Agenda, and in making its decisions, it focuses particularly on the following targets:

  • decent work and economic growth (Target 8)
  • sustainable cities and communities (Goal 11)
  • responsible consumption and production (Target 12)
  • climate action (Goal 13)

The Petrol Group is committed to the transition to green energy, which is reflected in our three strategic targets up to and including 2025, which are written in the Petrol Group Strategy for the 2021 - 2025 period: reducing the carbon footprint of primary activities by 40 percent for Petrol d.d., Ljubljana, excluding the Energy and Solutions organisational unit (hereinafter referred to as OE EiR) compared to the reference year, investing in the energy transition in the amount of EUR 244 million and 164 MW of installed capacity for renewable electricity generation. The aim of energy renovation is to achieve 73 GWh of energy savings for final customers in 2025.

By continuously developing the composition of fuels, we will actively contribute to reducing emissions in all markets where we operate. At the same time, sustainability policies will provide for the reduction of the carbon footprint both in the Petrol Group and of our customers. By improving our own processes, upgrading competencies and empowering employees, the Group will address the current and future needs of customers in the energy sector in an even more decisive manner and adapt its operations to the user who is at the centre of our attention.

The generation of electricity from RES has a special place in energy transition, where we have been paving the way to become one of the most important providers in SE Europe. The development of new e-mobility and mobility service solutions is an important pillar of Petrol's sustainable and innovative operations. The Petrol Group focuses on two segments here. The first is related to the charging infrastructure, which means the establishment, management and maintenance of the e-vehicle charging infrastructure and the provision of a charging service. Petrol's goal for the e-vehicle charging infrastructure is to include at least 1,500 e-charging stations by the end of 2025. The second segment is accounted for by mobility services, such as commercial leasing, fleet electrification, and fleet management services, where we also aim to grow our market share.

Specific targets for individual areas of environment, society, and governance are disclosed in sections E1, E2, E3, E5, S1, S3, S4 and G1.

Assessments of current relevant products and services, as well as relevant markets and customer groups, in relation to sustainability-related targets

Committed to sustainability, the Petrol Group conducts annual assessments of its performance against established targets. In our core sales group of fuels and petroleum products, we are continuously working to reduce transport emissions by adding renewable energy sources for mobility (biofuels) and fuel additives. With the implementation of our unique Dual Action Technology, users of petrol and diesel in all markets offering Q Max-branded fuels benefit from energy savings and thus reduced emissions due to lower fuel consumption. In 2022, our Q Max fuels were awarded the EQTM (European Quality Trademark) by the European Organisation for Quality (EOQ).

In addition to fuel additives, Petrol is also adapting its fuels to new trends and market demands to further reduce combustion emissions. These efforts focus primarily on the use of advanced biofuels produced from waste raw materials in conventional biofuel production. These effects are already more pronounced in our premium fuels (Q Max iQ Diesel and Q Max 100), where the advantages of using high-quality fuel components are maximised.

The carbon footprint of Petrol d.d., Ljubljana

from its own activities (excluding the Energy and Solutions business unit – OE EiR) in Scopes 1 and 2 (market-based method) has so far been reduced by 20.8% (more in E1-4). Key pillars of the Group’s decarbonisation efforts are energy efficiency and the generation of energy from renewable sources, where we are actively expanding our operations. Under the Petrol Green project, we have started installing solar power plants at our own facilities – on the rooftops of service stations in Slovenia, Croatia and Serbia.

In the field of energy solutions

our main activities have been directed towards the industrial, commercial and household segments. We co-financed energy efficiency projects totalling over 100 GWh in energy savings.

In 2024, the Petrol Group achieved the following results in the area of e-mobility and electric vehicle charging infrastructure:

  • enabled the transfer of nearly 6 GWh of electricity used for EV charging.
  • registered 6,300 new users,
  • completed a pilot project for the installation of payment terminals and successfully equipped 12 public EV charging locations with payment terminals.
  • expanded the EV charging network with 38 company-owned charging stations and 33 new charging points operated by Petrol.

By the end of 2024, we successfully concluded the multi-year EU project MULTI E, through which we installed 42 ultra-fast (UC) charging stations with up to two charging points with a capacity of at least 150 kW, and 105 conventional (AC) charging points with a capacity of up to 22 kW in Slovenia and Croatia.

Elements of the Petrol Group's strategy that relate to or impact sustainability matters

The Petrol Group's Strategy for the 2021–2025 period serves as the umbrella development document, outlining strategic objectives and business plans in line with its vision: “To become an integrated partner in the energy transition, offering an excellent user experience.” In 2025, a new five-year strategy will be adopted, introducing updated strategic directions for continued successful operations in a business environment marked by accelerating changes across several dimensions. We will continue to strengthen our leading role in the region’s energy transition.

The sectors most relevant to the Petrol Group include oil and gas, sales and trading, and energy generation. The operating environment is undergoing profound change. Global political uncertainty, the shift toward a low-carbon society, ambiguous market signals, and the slow commercialisation of emerging technologies are all contributing to a complex and unpredictable transformation of established practices in energy production, procurement, sales, and use.

In addition to fuel additives, Petrol is also adapting its fuels to new trends and market demands to further reduce combustion emissions.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Volatility in energy markets may lead to tighter conditions for the procurement of petroleum products or even potential disruptions in supply chains. These disruptions could, in turn, affect the Company’s ability to meet regulatory targets, particularly the required share of renewable energy in transport.

The accelerated and demanding transition to renewable and alternative fuels—promoted by the European Green Deal—introduces requirements such as achieving energy savings among end-users (Slovenian: ZPEPKO – Zagotavljanje prihrankov energije pri končnih odjemalcih), increasing the share of RES66 components in transport fuels, CO₂ taxes, and penalties for non-compliance. While these mechanisms are expected to positively contribute to the achievement of environmental objectives, they may at the same time have a negative impact on business profitability.

In the field of energy supply and generation for heating and cooling, the Petrol Group is navigating still-evolving regulatory frameworks across private and industrial segments in the region. As a result, the implementation of planned projects has slowed, and the investment risks associated with these projects remain relatively high—both for the Group and for stakeholders along the value and supply chains.

Despite the many uncertainties, we aim to (remain and) strengthen our role as a key integrator within the broader energy ecosystem, offering a diverse portfolio of energy commodities and advanced energy solutions.

Business model and value chains

The Petrol Group’s business model is based on a comprehensive portfolio of energy commodities, energy, and energy solutions, reflected in the provision of fuels and petroleum products, electricity and energy-related services, as well as merchandise and mobility-related services. The Group’s core development activity lies in expanding and introducing new energy services and in generating electricity from renewable energy sources.

The Petrol Group has developed a structured overview of its operations, business relationships, and the broader context in which they take place, while also building a clear understanding of its key affected stakeholders.

We analyse our activities and business relationships from the perspective of:

  • the strategic guidelines of the Petrol Group.
  • the business plans of the parent company and the Group.
  • financial statements and, where relevant, other investor-related disclosures.
  • the Group’s key activities, products/services, and their geographic footprint.

RES – Renewable Energy Sources

The Group’s core development activity lies in expanding and introducing new energy services and in generating electricity from renewable energy sources.

Our approach to gathering, developing, and acquiring data is grounded in the legal and regulatory framework that governs our operations. Key references include the European Green Deal (2020), the National Energy and Climate Plan (2024), and the Strategy for Developing a Market for Alternative Fuels Infrastructure in the Transport Sector in Slovenia (2017).

We also draw on knowledge, methodological frameworks, and input data gained through membership in and active participation with key national industry associations and institutions.

such as: the Chamber of Commerce of Slovenia, the Chamber of Commerce and Industry of Slovenia, the Energy Chamber of Slovenia, the Employers’ Association of Slovenia, the Slovenian Association for Quality, the Slovenian National Oil and Gas Committee (SNNK), the Economic Interest Association for Liquefied Petroleum Gas (GIZ UNP), the Slovenian Institute for Standardization (SIST), the American Chamber of Commerce, the Development Centre for Hydrogen Technologies (TECES), the Slovenian Energy Association, the Slovenian Corporate Security Association, the Slovenian Water Protection Society, ODEM – the Association of Packaging Manufacturers, Importers and Users, the Green Network of Slovenia, the Slovenian Marketing Association (DMS), the Slovenian Advertising Chamber, GOMA – Croatian Association for Fuels and Lubricants, and H2 – Croatian Association for Hydrogen Fuel Development and Application.

We are also members of European-level organisations such as FERMA (Federation of European Risk Management Associations), UPEI (The Voice of Europe’s Independent Fuel Suppliers), the European Forum for Energy, IEEE (Institute of Electrical and Electronics Engineers), and CIGRE, the global network for energy system development.

Moreover, we collaborate with the European Institute of Innovation and Technology (EIT), Europe’s largest public-private partnership for addressing climate change through innovation, with the goal of building a carbon-neutral economy. We also actively engage with EIT Climate-KIC Hub Slovenia67, where we promote environmental topics and drive innovation.

67 EIT Climate-KIC Hub Slovenia – part of the EU’s climate innovation initiative

Impacts and results in terms of current and expected benefits for customers, investors and other stakeholders

The Petrol Group respects human rights and maintains a responsible relationship with all its stakeholders, striving to achieve maximum and balanced satisfaction across all groups. Our approach to employees is detailed in section S1, to affected communities in E3, to customers in S4, and to suppliers in G1. The Company ensures a governance system that upholds the principle of equal treatment of shareholders and enables the responsible exercise of shareholder rights.

Its capital policy is focused on the long-term maximisation of returns for shareholders while also taking into account the social and environmental dimensions of its operations.

We maintain a stable dividend policy that balances dividend payouts with the use of free cash flow to finance the Petrol Group’s investment plans. This ensures long-term growth and sustained value creation for shareholders. Petrol d.d., Ljubljana pays dividends to shareholders annually.

The target dividend policy for the 2021–2025 strategic period is set at 50 percent of the Group’s net profit, subject to the investment cycle, key financial indicators, and the achievement of strategic goals.

As a joint-stock company listed on the Prime Market of the Ljubljana Stock Exchange, Petrol d.d., Ljubljana adheres to the Corporate Governance Code for Listed Companies. The Company has also adopted a Governance Policy, which defines stakeholder groups and outlines its communication and engagement strategy with each of them.

The Company has established a public disclosure approach that ensures equal, timely, and

efficient access to all material information for shareholders and the wider public. Through this approach, Petrol fosters trust among its shareholders. Communication with both existing and potential shareholders—retail and institutional—is conducted in a comprehensive and regular manner.

Main characteristics of the upstream and downstream parts of the value chain and position in the value chain

The Petrol Group has identified four main value chains: oil and petroleum products, gas, electricity, and merchandise and services. Each of these value chains involves defined stakeholders with whom we actively engage.

All four value chains are taken into account in our reporting, with a brief description of their key characteristics and our position within each.

The oil and petroleum products value chain

The value chain of oil and petroleum products is segmented into three main stages or flows:

  • Upstream – exploration and extraction of crude oil, including identifying reserves, drilling wells, and producing hydrocarbons.
  • Midstream – transportation and storage of crude oil, involving pipelines, tankers, and storage facilities that maintain a steady flow of resources.
  • Downstream – refining of crude oil into final products such as petrol, diesel, and petrochemicals, followed by the marketing and distribution of these products to end users.

The Petrol Group operates exclusively in the downstream part of the value chain, acting as a distributor of petroleum and related products in their final form. It is active in the wholesale sector (B2B and B2G) across Slovenia, Southeast Europe, and other European markets, and in the retail sector (B2C) through a physical network of service stations in Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, and Serbia.

Due to its scale and market position, the Petrol Group does not exert significant influence over the upstream segment of the value chain.

Natural gas value chain

The natural gas value chain is also segmented into three key stages or flows:

  • Upstream (Production) – includes the exploration of potential deposits, drilling of wells, extraction of natural gas, and its processing to meet required standardised specifications before being fed into the network.
  • Midstream (Transport) – refers to the transmission of natural gas via transmission networks to distribution networks or large consumers connected directly to the transmission system.
  • Downstream (Distribution) – involves the supply of natural gas to distributors and end consumers connected to the distribution network.

The Petrol Group operates in the midstream and downstream parts of the natural gas value chain – acting as a transporter and supplier via international transmission networks and supplying distributors and end users in Slovenia, Croatia, and Serbia.

Electricity value chain

The Petrol Group operates across both the wholesale and retail electricity markets in Europe. On the European wholesale market, we are members of 14 electricity exchanges and conduct trading activities in 15 European countries. The Group owns its electricity generation facilities in Slovenia,

Croatia, Serbia, and Bosnia and Herzegovina.

In the retail market, the Petrol Group supplies electricity in Slovenia, Croatia, Serbia, and Bosnia and Herzegovina. In Slovenia, electricity is provided to all customer segments – from large corporate clients (B2B) to small businesses and households (B2C). In the other markets where we are present in the retail segment, services are currently offered exclusively to corporate customers (B2B).

Value chain of merchandise and services

Merchandise and services include the sale of food, car cosmetics and spare parts, haberdashery items, tobacco products, lottery tickets, coupons and cards, coffee on the go, parcel drop-off services for various logistics providers, Fresh range products, car wash service, and other services, as well as the rental of hospitality facilities.

Sales are carried out through the following channels: retail (B2C), wholesale, the Petrol eShop online store, and the Petrol GO mobile application.

The Petrol Group operates exclusively as a distributor and retailer of merchandise and services to end customers in Slovenia and in other markets where it is present with a physical retail infrastructure (Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, and Serbia).

By pursuing both business and sustainability objectives across all four of its value chains, the Petrol Group strengthens its long-term financial stability, which is essential for fostering responsible, long-term relationships with all stakeholders.

SBM-2 – Interests and views of stakeholders

The complex operations of the Petrol Group encompass a broad spectrum of stakeholders—both natural and legal persons—who are either impacted by the Group or exert influence over its operations. These stakeholders can be classified as internal or external.

Description of stakeholders

The Petrol Group classifies its key stakeholders into two main categories:

  • Affected stakeholders (impact stakeholders): individuals or groups whose interests are—or may be—positively or negatively impacted by the Petrol Group’s activities and its direct and indirect business relationships along its value chains.
  • Users of the Sustainability statement: primary users of the Petrol Group’s annual report and other corporate disclosures.

Some stakeholder groups fall under both categories, as outlined in the table below.

Affected stakeholders – impact stakeholders Stakeholders – users of the Sustainability statement
Management Board Supervisory Board, owners (shareholders)
Employees Trade unions, Works Council
Trade unions, Works Council Regulators
Suppliers (Petroleum procurement, Natural gas supply & trading, Electricity supply & trading, Strategic & technical procurement) Civic initiatives, local communities
Customers: B2B, B2C, B2G Professional associations
The media Supervisory Board

EU project partners

Banks, insurance companies

Other support organisations

In the strategic management of stakeholder relations, we include upstream stakeholders (suppliers) and downstream stakeholders (customers and end consumers). Equally important are internal stakeholders, who co-create the Petrol Group’s activities, and stakeholders from the supporting environment.

In line with our business model and strategy, the materiality of stakeholders is assessed based on three criteria: the stakeholder’s power or influence over the Petrol Group, the stakeholder’s vulnerability to impacts from the Petrol Group, and the stakeholder’s overall materiality to the Group.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Among suppliers, we highlight four key groups as particularly material: suppliers of petroleum products, suppliers of natural gas, suppliers of electricity, and suppliers of merchandise and services within the scope of strategic and technical procurement.

As previously outlined, given our position in the upstream value chains, we maintain direct relationships only with direct suppliers of goods and products. Downstream, depending on the specific product group, our stakeholders include corporate entities, public sector organisations, and individual consumers.

We conduct our business in accordance with high ethical standards of corporate governance and place strong emphasis on the careful management of relationships with internal stakeholders, to whom we attribute considerable importance. Operating in a regulated environment — marked by a strong appetite for investment, knowledge, development, innovation, and collaboration — we also recognise the importance of stakeholders from the broader enabling ecosystem.

Stakeholder engagement

Stakeholder management is a continuous process through which the Petrol Group organises, monitors, evaluates, and improves its relationships with stakeholders. It involves the systematic identification of stakeholders, analysis of their needs and expectations, and the planning and implementation of various engagement activities. The structure, purpose, and approach through which the Petrol Group incorporates the outcomes of stakeholder engagement are presented in the corresponding table.

Stakeholder group Purpose of stakeholder management Engagement manner, method Attitude analysis (e.g.: identification and assessment of adverse impacts)
Taking into account the interests and views of stakeholders Awareness of the interests of stakeholders by management and supervisory bodies Monitoring the effectiveness of efforts, communicating (feedback)
Procurement of petroleum

Procurement process for adequate provision of petroleum products and LPG for smooth operation

  • Demand (current needs, long-term contractual agreements), complaints
  • Exchanging opinions in day-to-day business
  • Coordination and adaptation of business processes
  • Information provided through professional services (collegial bodies, coordination)
  • Management Board meetings
  • Settling (contract) liabilities

Supply and trading of natural gas

Procurement process for adequate supply of natural gas for smooth operation

  • Demand (current needs, long-term contractual agreements), complaints
  • Exchanging opinions in day-to-day business
  • Coordination and adaptation of business processes
  • Information through professional services (collegial bodies, coordination), gas and electricity portfolio management committee
  • Management Board meetings
  • Settling (contract) liabilities

Electricity supply and trading

Procurement process for adequate provision of electricity for smooth operation

  • Demand (current needs, long-term contractual agreements), complaints
  • Exchanging opinions in day-to-day business
  • Coordination and adaptation of business processes

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Processes

Information through professional services (collegial bodies, coordination), gas and electricity portfolio

Settling (contract) liabilities

Public Stakeholder group

Purpose of stakeholder management Engagement manner, method Attitude analysis (e.g.: identification and assessment of adverse impacts)
Taking into account the interests and views of stakeholders Awareness of the interests of stakeholders by management and supervisory bodies Monitoring the effectiveness of efforts, communicating (feedback)

Management committee

Management Board meetings

Strategic and technical procurement

Ensuring optimal supply chain management (non-oil business)

Demand

(current needs, long-term contractual agreements), complaints

Exchanging opinions

in day-to-day business

Coordination and adaptation of business processes

Information provided through professional services (collegial bodies, coordination), Management Board meetings

Settling (contract) liabilities

B2B customers

Ensuring B2B customer satisfaction and meeting

Customer Satisfaction and Engagement Strategies

Overview

Ensuring customer satisfaction and meeting their needs and expectations; continuous monitoring and development of the offering.

Methods of Engagement

  • Site visits by sales representatives and wholesale directors
  • ATL and BTL communication
  • Call centre support
  • Direct contact at service stations and warehouses
  • Corporate website (e-shop, etc.)

Feedback Mechanisms

  • Customer satisfaction surveys
  • Complaint analysis
  • Feedback collection via sales representatives

Action Plans

Action plans based on survey feedback; complaint resolution and process improvement.

Internal Communication

  • Briefings via professional services (collegial bodies, coordination)
  • Management Board meetings

Performance Indicators

Indicators: sales performance and customer satisfaction metrics.

B2C Customers

Ensuring B2C customer satisfaction and meeting their needs and expectations; continuous monitoring and development of the offering.

Communication Channels

  • ATL and BTL communication (TV, radio, mailings, SMS, digital, catalogues)
  • Call centre support
  • Direct contact at service stations
  • Corporate website (e-shop, Moj Petrol app, etc.)

Customer Experience Metrics

  • Transactional NPS – Net Promoter Score
  • Market research
  • Complaint analysis

Annual Action Plan

Annual CEX action plan based on customer pain points.

Steering Committees

  • Briefings via professional services (collegial bodies, coordination)
  • Management Board meetings
  • CEX steering committees

Performance Indicators

Indicators: sales performance and customer satisfaction metrics.

satisfaction metrics

B2G customers

Ensuring B2G customer satisfaction and meeting their needs and expectations; continuous monitoring and development of the offering

  • Site visits by field sales representatives and wholesale directors
  • ATL and BTL communication (TV, radio, mailings, catalogues)
  • Call centre support
  • Direct contact at service stations and warehouses
  • Corporate website (e-shop)
  • Public tenders and orders

Customer satisfaction surveys

Complaint analysis, collection of feedback through sales representatives

Complaint resolution

Root cause elimination; action plan based on satisfaction survey feedback

Briefings via professional services

(collegial bodies, coordination), Management Board meetings

Indicators

Sales performance and customer satisfaction metrics

Owners

Information about the Petrol Group's operations

Messages for investors or owners via SEO net and the company's website; conferences of the Ljubljana and Zagreb Stock Exchanges; invitations to general meetings

Trading in shares

On the stock exchange, approval of resolutions at general meetings

Review (awareness) and consideration

General Meeting, e-mail (e-mail address for investors)

Monitoring share trading

On the stock exchange and approving resolutions at general meetings

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

CEX – Customer Experience. Slovenian: uporabniška izkušnja.

Stakeholder Engagement

Stakeholder group Purpose of stakeholder management Engagement manner, method Attitude analysis (e.g.: identification and assessment of adverse impacts) Taking into account the interests and views of stakeholders Awareness of the interests of stakeholders by management and supervisory bodies Monitoring the effectiveness of efforts, communicating (feedback)
Supervisory Board Supervision of the Company's operations Supervisory Board sessions, General Meeting of shareholders, evaluation of the work of the Supervisory Board and committees, report on the work of the Board Giving consent, review (awareness) Consents, approvals Materials for meetings of the Supervisory Board and the General Meeting Analysis of the evaluation of the work of the Supervisory Board and committees, determining the achievement of targets according to the business plan
Employees Informing, collaborating, promoting a sense of belonging and agility, connecting, harmonising positions and preventing misunderstandings, developing employees, strengthening corporate culture, reducing turnover. Internal communication channels, educational and social events, quarterly and annual interviews, surveys and research, employee representative in the Works Council, trade union and head of the Works Council Satisfaction ratings, analysis of

Suggestions for Improvements

Introduction, Discussion and Adjustment of Activities

Reports, Meetings, Management Board Meetings

Employee Satisfaction Indicator

Trade Unions

Harmonising Positions, Strengthening Mutual Dialogue

Sessions, Negotiations with Competent Authorities, Written Communication

Monitoring Issues and Initiatives

Review, Consideration and Adjustment of Internal Acts and Decisions

Minutes, Meetings

Mutual Satisfaction with the Decisions Made

Workers’ Council

Worker Participation in Management; Timely Coordination of Positions

Head of the Works Council - a member of the Management Board serves as a connecting link, employees have representation on the Company's Supervisory Board, regular sessions.

Monitoring Issues and Initiatives

Review, Consideration and Adjustment of Internal Acts and Decisions

Minutes, Meetings

Mutual Satisfaction with the Decisions Made

Regulators

Timely Review with Relevant Changes in Legislation; Participation in Changes in Areas Crucial to the Petrol Group

Email, Work Groups

Review of Legislation by Individual Stakeholders and Comment on Changes

Preparing Comments on Changes to Legislation and Submitting Them to an Individual External Body

E-mail or Briefing at Management Board Meetings

Comments Taken into Account When Adopting Legislation

Banks

Providing Appropriate Banking Products and Liquidity

Annual Review of the Petrol Group's Operations by Banks


Annual Report

ESG Questionnaires and Assessments

Regular review of all completed content, which is a requirement of banks for smooth cooperation.

Regular monitoring and implementation of identified needs for improvements/legal definitions.

Information provided through professional services (collegial bodies, coordination), Management Board sessions.

Liquidity and Provision of Competitive Banking Products

Insurance Companies

Risk Reduction

An agreement has been concluded with an insurance broker who cooperates with insurance companies. The selection of the contractor is in compliance with a transparent procurement process.

Regular weekly meetings and professional coordination with the insurance broker (internal stakeholders of the Petrol Group are included if necessary).

Based on our needs, the insurance broker finds the most favourable offers on the market, based on which a decision/choice of individual insurance is made.

Information provided through professional services (collegial bodies, coordination), Management Board meetings.

Assessment of the impact of insurance on individual risks.

Civic Initiative

Coordination of positions, resolution of outstanding issues.

Written communication, sessions, participation in initiatives.

Monitoring media releases, following up on issues and initiatives.

Adjustment of operations, if possible.

Information through professional services.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Mutual satisfaction with activities

Public Stakeholder group Purpose of stakeholder management Engagement manner, method Attitude analysis (e.g.: identification and assessment of adverse impacts) Taking into account the interests and views of stakeholders Awareness of the interests of stakeholders by management and supervisory bodies Monitoring the effectiveness of efforts, communicating (feedback)
Professional associations Pursuit of the interest of the Company through an individual association Professional training, business conferences Regular review of obligations and commitments We maintain active membership. E-mail or briefing at Management Board meetings Giving opinions, networking, new knowledge
The media Informing the public about the Company's news, activities and operations, increasing the Company's visibility and reputation, reducing the risks of adverse publicity Press releases, press conferences, answering journalist questions, Petrol's web portal (Media subpage), events for journalists, invitations to Company events Monitoring of media releases Proactive, professional and up-to-date communication Collegial bodies, e-mail (confirmation of press releases, answers to press questions, press materials, etc.) Correct reporting on the Company's operations and activities

Summarising

Answers to press questions, the number of journalists present at events.

Supporting Environment

  • Professional cooperation
  • Email, work groups, events
  • Content analysis of the exchange of opinions
  • Coordination (e.g. when transmitting data)
  • E-mail address
  • Mutual satisfaction with activities
  • EU project partners
  • Efficient absorption of grants for green transition projects

Our own database of project partners with whom we cooperate in consortia. Direct connection relationships.

Regular monitoring of relationships with partners, methods of communication and constructive cooperation. Based on this, the partner is evaluated for further cooperation.

Proactive, professional and up-to-date communication.

Cooperation with associations, relevant ministries, organisations at the national and EU levels.

Information provided through professional services (collegial bodies, coordination), Management Board sessions, and through the horizontal EU group.

Annual amount of grants obtained.

Local Communities

  • Resolving outstanding issues, ensuring cooperation
  • Regular monthly sessions
  • Analysis of complaints, analysis of outstanding issues and initiatives
  • Adapting the work process where it makes sense and is possible
  • Review at the Management Board meetings
  • Reducing the noise indicator

As shown in the table, the management and supervisory bodies are systematically kept informed about stakeholder interests through various mechanisms. The Supervisory Board is briefed quarterly on all key ESG topics via the Petrol Group’s business reports, as disclosed in section ESRS 2 GOV 1. From a substantive perspective, this includes all material positions and interests.

of affected stakeholders, including the Petrol Group’s sustainability-related impacts. As a socially responsible group, Petrol systematically and strategically engages all identified stakeholder groups, in line with its own interests and the legitimate interests of stakeholders. It recognises that sustainable development depends on continuous dialogue with all key stakeholders, encompassing environmental, social, and governance (ESG) aspects. Corporate governance includes ongoing stakeholder engagement across various segments, as presented in the table.

The views and interests of stakeholders expressed within the framework of the Petrol Group's stakeholder engagement through the due diligence process may be relevant to one or more aspects of its strategy or business model. As such, they can impact the Petrol Group's decisions regarding the future direction of its strategy or business model. Stakeholders have also been included in the double materiality assessment process, which is disclosed in ESRS 2 IRO 1.

The positions and interests of stakeholders expressed as part of the Petrol Group’s engagement and due diligence processes may be relevant to one or more aspects of its strategy or business model. As such, they can influence decisions about the Group’s future strategic direction and business model. Stakeholders have also been included in the double materiality assessment, as disclosed in ESRS 2 IRO 1.

The Petrol Group adjusts its strategy and business model accordingly, based on the views and interests of both internal and external stakeholders. To remain competitive, the Group continuously adapts to evolving conditions in the markets where it operates. These adjustments primarily relate to the digital transformation of processes and products, sustainability aspects of operations, and the development of new energy transition products and services. The Group also keeps track of developments in national and international guidelines, standards, and best practices.

Going forward, we will continue to actively enhance the sustainability aspects of our operations, both in-house and across value chains, in line with our strategic guidelines and targets. We will maintain regular dialogue with stakeholders, monitor their views, and implement necessary adjustments based on their feedback.

We expect that the planned measures and activities will further strengthen stakeholder relationships and build greater trust in our Group. We remain committed to improving our engagement with employees, customers and end-users, suppliers, business partners, the broader community, and other external stakeholder groups.

SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

Our material impacts, risks and opportunities and their connection to our strategy and business model are described thematically across sections E1, E2, E3, E5, S1, S3, S4 and G1.

In general, the Petrol Group’s material impacts, risks and opportunities are closely tied to the strategy and core activities of our energy-sector business model and are predominantly linked to the locations where we operate.

In these sections, we disclose the current and anticipated effects of material impacts, risks and opportunities on our business model, value chain and strategy. We also explain the significance of the Petrol Group’s negative and positive impacts on people and the environment, and present key measures taken to address these impacts and risks or to harness specific opportunities.

As an energy group, we generate a wide range of environmental, social and governance impacts, which we manage systematically and diligently. At the same time, we identify a number of risks and opportunities, most of which — with the exception of three areas (energy, decent wages, and cybersecurity) — are not financially material to a high degree.

Among the most significant impacts are those related to climate change (mitigation and energy). In the energy domain, we have identified an opportunity for further growth in fossil fuel distribution. However, this business opportunity also increases the negative environmental impact of our operations, namely our carbon footprint. This issue will be specifically addressed in the new five-year strategy to be developed in 2025, which will also consider potential changes to our business model.

In the environmental domain, our operations affect water and soil pollution (both positively and negatively).

negatively) and the handling of substances of concern. We also generate both negative and positive impacts related to water resources, resource inflow (including resource use), and waste generation.

We exert multiple impacts — both beneficial and adverse — on our own workforce, arising directly from our operational activities. Negative impacts include issues related to working hours and work-life balance, due to the nature of our uninterrupted operations. As a result of state regulation, the sector lacks sufficient added value to support competitive wages, particularly in retail. The green transition, combined with tightening legislative and regulatory requirements, also correlates negatively with job security during the transformation of business activities. These and other negative impacts are managed with great care, while we strive to amplify positive impacts — as further detailed in section S1.

In relation to affected communities, we have identified a potential negative impact. Our operations are subject to SEVESO legislation, which implies potentially high risks for local communities in areas where we are present. These risks are managed with exceptional diligence and in line with the highest standards.

Our material impacts on customers and end-users are exclusively positive, as the customer is placed at the heart of our operations. These impacts and our management practices are presented in section S4.

In the governance domain, we have identified three positive impacts: in the areas of corporate culture, political participation and lobbying, and supplier relationship management (including payment practices). Cybersecurity, however, constitutes a significant financial risk, given our role as a major energy company managing critical infrastructure. These risks are addressed responsibly through strategic direction and appropriate safeguards.

Because our material impacts, risks and opportunities are closely aligned with our core business and growth capacity, our initiatives to harness opportunities and mitigate risks and impacts are embedded within existing governance structures. As a result, we assess our resilience as adequate — and in some areas even strong — when measured against the time horizons defined in the standards.

In light of the evolving business environment, regulatory requirements, and unclear market signals, the new five-year strategy of the Petrol Group will define the key directions of our operations and adapt our business model accordingly.

IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities

The Petrol Group has conducted a double materiality assessment in line with ESRS standards. The methodology involves identifying material sustainability topics by analysing their impacts on people and the environment, and assessing associated risks, opportunities, and financial materiality. From a content perspective, the methodology comprises several steps, which are illustrated in the accompanying diagram.

Impacts

To define impacts and to assess, prioritise and monitor the actual and potential negative and positive impacts of the Petrol Group, we used the list of sub-topics included in the ESRS standards. We analysed our own strategic and other internal documents – including those aligned with the due diligence process – reviewed the relevant legal and regulatory framework of our.

business, consulted analytical and strategic energy-related documents, GRI

72

and SASB

73

sector standards, existing sectoral benchmarks, publications on global megatrends, and scientific sustainability literature relevant to our value chain. We also analysed the reports of larger peer companies. Based on this, we developed a broader list of potentially relevant specific sub-topics.

72 GRI – Global Reporting Initiative

73 SASB – Sustainability Accounting Standards Board. Slovenian: Odbor za standarde računovodskega poročanja o trajnostnosti.

•Understanding the concept and context of the double

Materiality Assessment

Understanding the Value Chain and Its Impacts


  • Identifying relevant stakeholders
  • Engaging stakeholder

groups

•Selecting sustainability topics in line with the ESRS

and other sources

Defining assessment scales and financial thresholds


Defining impacts, risks and opportunities

1 Preparation


Assessing the materiality of impacts

Assessing financial


2 Implementation

• Subsequent expert review of

the double materiality assessment

•Determining the materiality


Threshold for Reporting

• Confirmation of the double materiality assessment by

the Management Board

3 Supervision and confirmation


Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Impacts Assessment

Impacts were assessed using a two-stage approach. We appointed expert evaluators from relevant business lines across the Group and simultaneously consulted key stakeholders who are significantly affected by our business or who exert influence over it. Each relevant stakeholder group was included in the assessment, either in full or via a representative sample.

The assessment of the materiality of the Petrol Group’s impacts on people and the environment is based on those impacts that could reasonably be expected to result from our operations, target setting, and performance outcomes, both in our own operations and across the entire value chain. Impacts were classified according to three timeframes (short-term, medium-term, and long-term), and by business relationships (own operations and value chain). Impacts may be negative or positive, and actual or potential.

For actual negative impacts, materiality is assessed based on their severity; for potential negative impacts, it is determined by a combination of severity and the likelihood of occurrence. Severity is evaluated based on magnitude, scope, and irreversibility.

For positive impacts, materiality is assessed based on magnitude and scope (for actual impacts), or on magnitude, scope, and likelihood (for potential impacts). In line with the defined assessment scales, impacts are first evaluated and then prioritised according to their resulting scores.

Risks and Opportunities

To identify, assess and prioritise risks and opportunities, we used a list of identified impacts through which external factors could pose a risk and/or opportunity to the Petrol Group. In doing so, we considered the connections and interdependencies between impacts and the risks and opportunities that may arise from them. We also reviewed the Petrol Group’s risk register, where we had already identified environment-, social- and governance-related risks with financial effects, as well as climate change analyses, scenario analyses and resilience assessments. In addition, we referred to the list of sub-topics defined by the ESRS standards and to other documents already mentioned in the impact assessment process.

Based on this, a broader list of potential risks and opportunities was developed. A sustainability matter is considered financially material if it causes or is reasonably likely to cause material financial effects. This applies where a sustainability matter results in or may result in risks or opportunities that have a material impact, or are reasonably expected to have a material impact, on the development, financial position, financial performance, cash flows, access to finance, or cost of capital of a particular company or the Group as a whole in the short-, medium-, or long-term.

The assessment of the materiality of the Petrol Group's impacts on people and the environment is based on those impacts that could reasonably be expected from our operations.

The Petrol Group’s risks and opportunities may stem from past or future events. The financial materiality of a sustainability matter is not limited to factors under the direct control of the Petrol Group but also includes information on significant risks and opportunities linked to business relationships that fall outside the scope of consolidation used in the preparation of financial statements.

The materiality of risks and opportunities, as assessed by the Petrol Group’s experts, was determined based on a combination of the likelihood of financial impacts occurring and their potential magnitude (scope). For financial materiality thresholds, we applied the same financial scales used in our internal risk assessment processes, thereby ensuring a holistic approach to risk and opportunity management across the Group.

External stakeholders were not consulted in this segment, as assessing the financial consequences of external sustainability impacts requires specialised and in-depth knowledge that our external stakeholders do not possess.

In the double materiality assessment methodology, decision-making procedures and internal controls — under the responsibility of the Head of Sustainability Reporting — were clearly defined. Upon completion of the assessment process, the double materiality results were reviewed by an expert group. The final assessment was reviewed and approved by the Group’s Management Board.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

The Petrol Group has a fully integrated risk management system, which also encompasses procedures for the identification, assessment, and management of impacts and risks.

Our systematic approach to identifying, assessing and managing opportunities that support sustainable development and create value for stakeholders involves a holistic analysis of the many external factors that impact our operations. The assessment of opportunities is based on business analyses, cost-effectiveness assessments and compliance with the Group's sustainability strategy. The identified opportunities are included in strategic business plans with the aim of creating higher added value for stakeholders, expanding operations, improving performance and increasing business resilience, also from the perspective of the green transition and climate change.

In the process of identifying, assessing, and managing material impacts, risks, and opportunities, a variety of inputs were used—such as internal system analyses, evaluations and scoring mechanisms, stakeholder insights, and external expert analyses relevant to our sector and value chain.

Double materiality assessment (overview by materiality level)

The Petrol Group has a fully integrated risk management system, which also encompasses procedures for the identification, assessment, and management of impacts and risks.

Subtopic Impacts, risks, and opportunities Positive, negative Origin in the value chain Trend (short-term, medium-term, long-term) Downstream Own activity Upstream
E1 - Climate change Climate change mitigation Carbon footprint due to the Company/Group's operations Actual impact X Steady trend
Climate change mitigation Efficient energy use in our own operations Services that contribute to climate change mitigation in the downstream value chain: - e-mobility, - energy renovation of facilities, - energy renovation of public lighting, - optimisation of district heating systems,
- use of waste heat for heating. Infrastructure investments in e-mobility; partnerships for installing charging stations Actual and potential impact X X

Growth trend

Energy

Activities include the generation and marketing of RES:

  • wood biomass,
  • wind energy generation in our own wind farm,
  • direct generation and marketing of solar energy,
  • direct generation and marketing of hydropower,
  • generation and marketing of geothermal energy.

Replacing fuels with a higher carbon footprint with natural gas as a transition energy source.

Additivated fuel contributes to efficient energy use and consequently to climate change mitigation.

Actual and potential impact

Growth trend

Energy

Trading in petroleum products and natural gas, LPG, LNG, CNG and hydrogen (identified as mid-term), district heating supply.

(Non-)guaranteeing a mandatory marketshare for advanced biofuels and related infrastructure (due to the absence of established market mechanisms).

Actual and potential impact

Declining trend

Energy

Market opportunities for further growth in fossil fuel distribution.

Opportunity

Growth

E2 Pollution

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report 171

Public

Subtopic

Impacts, risks, and opportunities

Positive, negative

Origin in the value chain

Trend (short-term, medium-term, long-term)

Downstream

Own activity

Upstream

Water pollution

Water pollution caused by our own activity.

Actual impact

Declining trend

Water pollution

- treatment service for polluted industrial and municipal water (market activity);

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Environmental Impact

Closed Water Circuit in Car Washes

  • Closed water circuit in car washes (own activity);
  • Treatment facilities for own use.

Actual Impact

Pollution of soil Soil pollution caused by our own activities (e.g. spills) Actual and potential impact X Declining trend
Pollution of soil Implementing remediation Actual and potential impact X Steady trend
Substances of concern Use, distribution and/or marketing of substances of concern (key sales items: diesel, petrol, LPG, aviation fuels) Actual impact X X Steady trend
Substances of concern The activity is conducted in accordance with state-of-the-art measures to protect employees, customers and the natural environment. Actual impact X X Declining trend

E 3 Water and Marine Resources

Water consumption Water consumption for our own car wash activity Actual impact X X Steady trend
Water consumption Water cycle management for the market: treated and reused industrial water Actual impact X X Steady trend

E5 Use of Resources and Circular Economy

Resource inflows, including resource use Raw materials for our own activity: merchandise and packaging Actual impact X X X Steady trend

Impacts, risks, and opportunities

Positive, negative Origin in the value chain Trend (short-term, medium-term, long-term)
Downstream Own activity Upstream
Resource inflows, including resource use - The proportion of recyclable materials or recycled materials in products for our own activity; - sale of merchandise in bulk; - reuse of packaging (e.g. cardboard boxes). Actual and potential impact
X X X
Growth trend Waste Waste generation from our activity
Waste generation at service stations by customers Actual impact X
X Steady trend Waste
Waste separation system at origin in our own activity and at service stations Own packaging sorting Actual impact
X X Steady trend
Company S1 Own workforce Employment security
Timely transfer of knowledge in light of the business transition: Status of one of the largest and most reputable employers in the region (without major lay-offs) Actual impact
X Declining trend Employment security
the green transition of activities (including the legislative and regulatory framework) is negatively correlated with job security in the context of business transition. Potential impact X
Growth trend Working hours Activity with continuous operation (night work, weekend work)
Actual impact X Growth trend
Working hours In certain segments, the activity allows for working from home, flexible working hours, mid-week days off, etc. Actual impact

Growth trend

Adequate wages

All employees receive at least the minimum wage; the Group rewards successful performance and provides a supplementary pension scheme.

Actual impact

Adequate wages

Due to market regulation, the activity lacks sufficient added value to support competitive wages, especially in retail.

Actual impact

Adequate wages

Risk

The risk is maintaining competitive wage growth, aligned with inflation and market wage growth. As a result, there is a potential risk of certain staff profiles leaving.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Subtopic

Impacts, risks, and opportunities

Positive, negative

Origin in the value chain

Trend (short-term, medium-term, long-term)

Downstream

Own activity

Upstream

Social dialogue

High-quality, systemically regulated social dialogue.

Actual impact

Steady trend

Freedom of association, the existence of workers’ councils and workers' rights to information, consultation and participation.

Actual impact

Steady trend

High standard of freedom of association, including benefits for trade union members, social activities for all employees (e.g. sports games).

Actual impact

Steady trend

A well-organised and high-quality collective bargaining system.

Work-life balance

Comprehensive work-life balance actions for all employees in

Slovenia, Family-Friendly Company Certificate

Actual impact

Work-life balance The nature of the activity has limitations on work-life balance, particularly in the following areas: restrictions on the allocation of preferred leave and redeployment, particularly in service stations and the call centre Actual impact X Growth trend
Health and safety A comprehensive occupational health and safety system for employees has been established Actual impact X Steady trend
Gender equality and equal pay for work of equal value Gender pay gap; declining representation of women in managerial positions Actual impact X Steady trend
Training and development of knowledge and skills Developed system intended for developing leadership, potential and specific skills; training and coaching on the rise Actual impact X Growth trend
Training and development of knowledge and skills Systemic knowledge transfer needs to be upgraded in light of market knowledge developments (regarding green transition and market fluctuations) Actual impact X Declining trend

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Public

Subtopic

Impacts, risks, and opportunities

Positive, negative

Origin in the value chain

Trend (short-term, medium-term, long-term)

Downstream

Own activity

Upstream

Company

S3 Affected communities

Impacts related to safety

Our activities are carried out in compliance with the Seveso legislation, as the activity may pose a high risk to local communities where we are present with our activities.

Potential

impact

Company

S4 Consumers and end-users

Freedom of expression

A comprehensive, integrated and diversified communication system has been established, controlled by the Management Board

Actual impact: Steady trend

Access to (high-quality) information

A comprehensive communication system that includes all relevant stakeholders and all aspects of information to support informed decision-making by consumers and end-users.

Actual impact: Steady trend

Health and safety

An integrated system has been established to ensure the health and safety of customers, which includes:

  • product conformity,
  • preventive maintenance programs,
  • documented sales processes with all the necessary equipment.

Actual impact: Steady trend

Security of persons

The activity is carried out with integrated security systems, including consumer information security and physical security of customers (e.g. accidents, attacks, etc.).

Actual impact: Growth trend

Access to products and services

The activity is carried out with a high level of accessibility to products and services, including web applications, a “call me” function, and ramps for people with impaired mobility.

Actual impact: Steady trend

Responsible marketing practices

The activity is based on responsible marketing practices, including adherence to sustainable advertising guidelines and all forms of marketing communication.

Actual impact: Declining trend

Governance

G1 Business Conduct

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Public

Subtopic

Impacts, risks, and opportunities

Positive, negative

Origin in the value chain

Trend (short-term, medium-term, long-term) Downstream Own activity Upstream
Corporate culture High importance given to a stimulating corporate culture based on the values of the Petrol Group, encompassing all activities and transmitted throughout the value chain; also includes a broader commitment to respecting human rights across the value chain Actual impact X
Steady trend X
Political participation and lobbying activities Corporate position (stance) on national legislation or policy proposals that address environmental and social factors relating to the industry. Active participation through interest groups and representative bodies in the preparation of legislation in the Group's field of operation. Actual impact
Steady trend X
Supplier relationship management, including payment practices Compliance with legislation with stricter requirements and good practices Actual impact X
Steady trend X
Cyber security Information leakage, service disruption, information system hacking, legal violations or non-compliance. Risk X
Growth trend

IRO-2 – Disclosure requirements from the ESRS covered in the Company’s Sustainability statement

The list of data points derived from other EU legislation and information on where they can be found in the Sustainability Statement is disclosed at the end of the statement (p. 318).

The list of ESRS disclosure requirements fulfilled in preparing the Sustainability statement based on the results of the materiality assessment is also provided at the end of the Statement (p. 315-318).

The materiality threshold was set at 3 on a scale from 1 to 5, which, from the perspective of the financial definition of risks or opportunities, corresponds to EUR 25 million.

74 ESRS2 IRO-2 56, 59

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Material information to be disclosed regarding significant impacts, risks and opportunities has been identified in accordance with the requirements of ESRS 2 – General Disclosures and the relevant ESRS topical standards (i.e. all specified disclosure requirements and data points).

Additional information specific to our Group has also been disclosed in cases where a material sustainability matter is not addressed or sufficiently detailed by the ESRS, provided that, through

our materiality assessment, it was identified as material based on its relevance to the matter it illustrates or explains, its ability to support users’ decision-making (including that of primary users of general-purpose financial reporting), and/or its importance to users primarily interested in our Group’s impacts.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

E ENVIRONMENT

Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)

In accordance with the Taxonomy Regulation (Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088), which entered into force on 12 July 2020 and establishes a classification system for environmentally sustainable economic activities, we report, for the 2024 financial year, indicators for economic activities that are taxonomy-eligible. The reporting and analysis for the 2024 financial year cover all six environmental objectives of the European Union, namely:

  1. Climate change mitigation (CCM),
  2. Climate change adaptation (CCA),
  3. Sustainable use and protection of water and marine resources (WTR),
  4. Transition to a circular economy (CE),
  5. Pollution prevention and control (PPC), and
  6. Protection and restoration of biodiversity and ecosystems (BIO).

The scope of consolidated companies remained unchanged compared to 2023, including Petrol d.d., Ljubljana, and directly controlled subsidiaries in Slovenia and Croatia. In 2024, the companies Ekoen d.o.o. and Ekoen S d.o.o. were merged into Petrol d.d., Ljubljana, while Vjetroelektarna Ljubač d.o.o. was merged into Vjetroelektrarne Glunča d.o.o. The company MBills d.o.o. was renamed Petrol Pay d.o.o.

The revenues of directly controlled subsidiaries in Slovenia and Croatia included in the 2024 analysis represent 97.22% of the Group’s total consolidated revenues. Their capital expenditure accounts for 90.94% of the Group’s total capital expenditure, and their operating expenses represent 90.13% of the Group’s total operating costs.

The analysis covers material subsidiaries, identified based on their business activities and key performance indicators. With regard to revenue, the 2024 methodology excludes other operating income, and therefore only includes revenue from the sale of products or services linked to customer contracts. As for operating expenses, the 2023 methodology included both operating expenses and the cost of goods sold, whereas the 2024 methodology has been adjusted to cover only expenses related to services and materials for the maintenance of fixed assets, as well as short-term leases and rentals.

The key performance indicator ‘operating expenses’ under the Taxonomy Regulation refers to direct non-capitalised costs related to research and development, building renovation measures, short-term leases, maintenance and repairs, as well as all other direct expenditures associated with the day-to-day servicing of tangible fixed assets by the undertaking or by third parties to whom activities are outsourced, that are necessary to ensure the continued and effective operation of such assets.

The consolidated revenue of the entire Group in 2024 amounted to EUR 6,111,679 thousand, as disclosed in the Introduction of the Annual Report, Chapter 4 Highlights of Petrol Group Operations in 2024. Total capital expenditure amounted to EUR 64,314 thousand, comprising EUR 60,126 thousand in net investments and EUR 3,188 thousand in subsidies. Net investment figures are presented in Chapter 4.3 Financial Position of the Petrol Group, in the business section, and Chapter 5 Alternative Performance Measures, table List of Alternative Performance Measures in the Introduction of the Annual Report. Operating expenses of the entire Group, as defined under the Taxonomy Regulation, amounted to EUR 20,174 thousand in 2024 and are disclosed in Chapter 4.2 Petrol Group Operations, table Operating Costs of the Petrol Group, in the business section of the Annual Report.

Capital expenditure includes investments in tangible and intangible assets, with no changes to its scope in 2024. Tangible assets comprise real estate, equipment and machinery, and infrastructure such as energy installations. Intangible assets include industrial property rights, copyrights, and software (computer programs). In 2024, there were no capital investments in the covered companies stemming from goodwill or mergers and acquisitions (M&A).

The following 22 taxonomy-eligible activities of the Petrol Group in Slovenia and Croatia were

4. Identified across five sectors:

Energy

  • 4.1 Electricity generation using solar photovoltaic technology
  • 4.3 Electricity generation from wind power
  • 4.8 Electricity generation from bioenergy
  • 4.9 Transmission and distribution of electricity
  • 4.14 Transmission and distribution networks for renewable and low-carbon gases
  • 4.15 District heating/cooling distribution
  • 4.16 Installation and operation of electric heat pumps
  • 4.20 Cogeneration of heat/cool and power from bioenergy
  • 4.22 Production of heat/cool from geothermal energy
  • 4.24 Production of heat/cool from bioenergy
  • 4.30 High-efficiency cogeneration of heat/cool and power from gaseous fossil fuels
  • 4.31 Production of heat/cool from gaseous fossil fuels in an efficient district heating and cooling system

Water supply, wastewater management and waste, environmental remediation

  • 5.1 Construction, extension and operation of water collection, treatment and supply systems
  • 5.3 Construction, extension and operation of wastewater collection and treatment systems

Transport

  • 6.5 Transport by motorbikes, passenger cars and light commercial vehicles
  • 6.15 Infrastructure enabling low-carbon road transport and public transport

Construction and real estate

  • 7.1 Construction of new buildings
  • 7.2 Renovation of existing buildings
  • 7.3 Installation, maintenance and repair of energy efficiency equipment
  • 7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)
  • 7.6 Installation, maintenance and repair of renewable energy technologies

Long-term leases are not included in investments in fixed assets; they are recognised as right-of-use (ROU) assets and recorded directly under the fixed asset account for rights of use.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Public Information and communication

  • 8.2 Data-driven solutions for GHG emissions reductions

In the energy sector, Petrol Group manages facilities for the generation of electricity and energy from renewable sources, with solar and wind energy representing a significant share. We operate plants that use wood biomass (wood pellets) for combined heat and power generation, as well as for heat production. We also manage a boiler plant for heat production using geothermal energy and a facility for electricity generation from bioenergy or biogas. We hold concessions for performing the local public utility service as the system operator of the natural gas distribution network. Activities also include district heating distribution and heat pump management.

In the water supply, wastewater and waste management, and environmental remediation sector, we own or operate small municipal and industrial wastewater treatment plants and supply industrial consumers with water in two closed economic areas.

In the transport sector, activities include construction and operation of publicly accessible charging infrastructure for electric vehicles, as well as the purchase of passenger vehicles and light commercial vehicles, long- and short-term vehicle rentals, and fleet management.

The construction and real estate sector includes the construction of new buildings and the renovation of existing ones, referring to our own facilities. We also carry out activities related to energy management of buildings and public lighting. We install, maintain, and repair solar power plants for customers. Charging stations for electric vehicles located in parking areas of buildings are also included in this sector.

In the information and communication sector, activities involve the development and management of IT solutions for monitoring energy and water consumption data, with the aim of reducing consumption and greenhouse gas emissions.

The assessment of eligible economic activities for the purpose of determining the proportion of alignment was carried out for each of the activities based in the technical criteria established by Delegated Acts 2021/2139 and 2023/2486, respectively, as well as Climate Delegated Acts on nuclear and gas (EU) 2022/1214.

The activities were evaluated for eligible objectives, climate change mitigation and climate change adaptation. Following the evaluation, the Company identified that, even though it has abided by all EU regulations, the substantial contributions and the DNSH (Do No Significant Harm)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

requirements were not fully met. Additionally, the Company then performed the assessment criteria established for the 4 applicable areas regarding minimum social guarantees: human rights, corruption, taxation and competitive practices.

All taxonomy-eligible activities fall under the environmental objective of climate change mitigation (CCM) and climate change adaptation (CCA) – with the exception of two activities.

Following the assessment carried out based on the social minimum safeguards requirement, it was found that these are not fully met, therefore, the eligible activities carried out by the Company in 2024 (and 2023) cannot be considered aligned with the EU Taxonomy.

All taxonomy-eligible activities fall under the environmental objective of climate change mitigation (CCM) and climate change adaptation (CCA), with the exception of activity 8.2 Data-driven solutions for GHG emissions reductions and activity 6.5 Transport by motorbikes, passenger cars and light commercial vehicles, which are aligned with the first objective only. Climate change mitigation is the primary environmental objective of our activities. Activities 7.1 Construction of new buildings and 7.2 Renovation of existing buildings simultaneously fall under the objective of a circular economy (CE).

In 2024, due to a stricter approach to compliance with minimum safeguards and the alignment criteria for activities, we reclassified certain activities as taxonomy-eligible. Accordingly, we included the full amounts allocated to new constructions (7.1) and renovations (7.2) under investments in fixed assets, and not only investments in energy-efficient equipment (7.3) and heat pumps (4.16), which were carried out as part of upgrades and renovations. We also included investments in all passenger vehicles under activity 6.5 Transport by motorbikes, passenger cars and light commercial vehicles.

Group data are aggregated at the level of individual taxonomy-defined activities. Indicators are calculated based on definitions provided in the Annex to Regulation 2020/852 – Key Performance Indicators of non-financial undertakings. Company-level data are sourced from accounting statements, categorised by activity in the information system. To avoid double counting, revenue and operating expenses are tracked according to profit centres and internal accounting orders assigned to specific activities (with uniquely defined names). Investments in fixed assets (capital expenditure) are assigned unique identifiers within the platform used for demand management and project management, as well as for tracking investment numbers.

Key Performance Indicators

The proportion of revenue derived from the sale of products or services related to taxonomy-aligned economic activities – Petrol Group disclosure (Slovenia and Croatia) 78 for 2024

Notes:

  • CCM: Climate Change Mitigation
  • CCA: Climate Change Adaptation
  • EL: Taxonomy-eligible activity for the relevant objective
  • N/EL: Taxonomy-non-eligible activity for the relevant objective

Companies included in the analysis: Petrol d.d., Ljubljana; Petrol Skladiščenje d.o.o.; Petrol GEO d.o.o.; Petrol Pay d.o.o.; Geoplin d.o.o. Ljubljana; Atet d.o.o.; E 3, d.o.o.; Petrol d.o.o. (Zagreb); Vjetroelektrane Glunča d.o.o.; and Zagorski metalac d.o.o.

Financial year 2024

Economic Activities (1) Code Turnover Proportion of Turnover, year 2024 Climate Change Mitigation Climate Change Adaptation Water Pollution Circular Economy Biodiversity

Climate Change Mitigation

Climate Change Adaptation

Water Pollution

Circular Economy

Biodiversity

Minimum safeguards

Proportion of Taxonomy aligned (A.1.) or -eligible (A.2.) turnover, year 2023

Category enabling activity Category transitional activity Text in EUR thousand % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N % E T
Activity 0.00 0.00% N/EL N/EL N/EL N/EL N/EL N/EL N/EL N N N N N 0.00% //
0.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% N N N N N N 0.00% E
0.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% N N N N N N 0.00% T
4.3 Electricity generation from wind power CCM / CCA 4.3 17,811 0.30% EL EL N/EL N/EL N/EL N/EL 9.91%
7.3 Installation, maintenance and repair of energy efficiency equipment CCM / CCA 7.3 15,459 0.26% EL EL N/EL N/EL N/EL N/EL 13.90%
4.14 Transmission and distribution networks for renewable and low-carbon gases CCM / CCA 4.14 13,311 0.22% EL EL N/EL N/EL N/EL N/EL 15.91%
7.6 Installation, maintenance and repair of renewable energy technologies CCM / CCA 7.6 9,968 0.17% EL EL N/EL N/EL N/EL N/EL 17.91%
5.1 Construction, extension and operation of water collection, treatment and supply systems CCM / CCA 5.1 7,057 0.12% EL EL N/EL N/EL N/EL N/EL 8.12%
6.5 Transport by motorbikes, passenger cars and light commercial vehicles CCM 6.5 5,268 0.09% EL N/EL N/EL N/EL N/EL N/EL 4.16%
4.31 Production of heat/cool from gaseous fossil fuels in an efficient district heating and cooling system CCM / CCA 4.31 4,670 0.08% EL EL N/EL N/EL N/EL N/EL 5.25%
4.9 Transmission and distribution of electricity CCM / CCA 4.9 4,590 0.08% EL EL N/EL N/EL N/EL N/EL 3.92%
4.15 District heating/cooling distribution CCM / CCA 4.15 4,461 0.08% EL EL N/EL N/EL N/EL N/EL 5.48%
5.3 Construction, extension and operation of wastewater collection and treatment CCM / CCA 5.3 3,466 0.06% EL EL N/EL N/EL N/EL N/EL 3.16%
4.24 Production of heat/cool from bioenergy CCM / CCA 4.24 2,926 0.05% EL EL N/EL N/EL N/EL N/EL 3.00%

6.15 Infrastructure enabling low-carbon road transport and public transport

CCM / CCA Activity Turnover (EUR) Percentage Substantial contribution criteria DNSH criteria
6.15 Infrastructure enabling low-carbon road transport and public transport 2,680 0.05% EL N/EL
4.30 High-efficiency cogeneration of heat/cool and power from gaseous fossil fuels 1,877 0.03% EL N/EL
4.1 Electricity generation using solar photovoltaic technology 1,013 0.02% EL N/EL
7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) 404 0.01% EL N/EL
8.2 Data-driven solutions for GHG emissions reductions 334 0.01% EL N/EL
4.22 Production of heat/cool from geothermal energy 330 0.01% EL N/EL
4.8 Electricity generation from bioenergy 42 0.00% EL N/EL
4.16 Installation and operation of electric heat pumps 24 0.00% EL N/EL
4.20 Cogeneration of heat/cool and power from bioenergy 10 0.00% EL N/EL

Total: 95,703 (1.61%)

Turnover of Taxonomy-non-eligible activities

Of which Enabling

Of which Transitional

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)

A. Turnover of Taxonomy-eligible activities (A.1+A.2)

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Year

Substantial contribution criteria

DNSH criteria

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

In 2024, taxonomy-eligible activities accounted for 1.61% of the revenues from the sale of products or services (EUR 95,703 thousand out of a total of EUR 5,846,222 thousand) of the Petrol Group in Slovenia and Croatia. The largest contributors to taxonomy-eligible revenue were activities 4.3 Electricity generation from wind power, 7.3 Installation, maintenance and repair of energy efficiency equipment, 4.14 Transmission and distribution networks for renewable and low-carbon gases, and 7.6 Installation, maintenance and repair of renewable energy technologies. Together, these four activities accounted for 59.09% of the total taxonomy-eligible revenue of the companies included in the analysis. Compared to 2023, the share of activity 7.6 (Installation, maintenance and repair of renewable energy technologies) declined notably in 2024 and was overtaken in the lead position by

Activity 4.3 (Electricity generation from wind power)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Proportion of turnover from products or services related to taxonomy-aligned economic activities – disclosure for Petrol d.d., Ljubljana, for 2024:

Notes:

  • CCM: Climate Change Mitigation
  • CCA: Climate Change Adaptation
  • EL: Taxonomy-eligible activity for the relevant objective
  • N/EL: Taxonomy-non-eligible activity for the relevant objective.

Financial year 2024

Economic Activities Code Turnover Proportion of Turnover, year 2024 Climate Change Mitigation Climate Change Adaptation Water Pollution Circular Economy Biodiversity Minimum safeguards Proportion of Taxonomy aligned (A.1.) or -eligible (A.2.) turnover, year 2023 Category enabling activity Category transitional activity
Activity 0.00 0.00% N/EL N/EL N/EL N/EL N/EL N/EL N N N
0.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% N N N N
0.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% N N N N
0.00 0.00% 0.00% N N N N N 0.00%
7.3 Installation, maintenance and repair of energy efficiency equipment 14,407 0.33% EL EL N/EL N/EL N/EL 17.06%
4.14 Transmission and distribution networks for renewable and low-carbon gases 10,182 0.23% EL EL N/EL N/EL N/EL 14.47%
7.6. Installation, maintenance and repair of renewable energy technologies 9,968 0.23% EL EL N/EL N/EL N/EL 22.92%
5.1 Construction, extension and operation of water collection, treatment and supply systems 7,057 0.16% EL EL N/EL N/EL N/EL 10.39%
4.9 Transmission and distribution of electricity 4,590 0.10% EL EL N/EL N/EL N/EL

5.02%

4.31 Production of heat/cool from gaseous fossil fuels in an efficient district heating and cooling system

CCM / CCA 4.31 4,428 0.10% EL EL N/EL N/EL N/EL N/EL

4.15 District heating/cooling distribution

CCM / CCA 4.15 4,244 0.10% EL EL N/EL N/EL N/EL N/EL

5.3 Construction, extension and operation of wastewater collection and treatment

CCM / CCA 5.3 3,466 0.08% EL EL N/EL N/EL N/EL N/EL

4.24 Production of heat/cool from bioenergy

CCM / CCA 4.24 2,623 0.06% EL EL N/EL N/EL N/EL N/EL

6.15 Infrastructure enabling low-carbon road transport and public transport

CCM / CCA 6.15 2,080 0.05% EL EL N/EL N/EL N/EL N/EL

4.30 High-efficiency cogeneration of heat/cool and power from gaseous fossil fuels

CCM / CCA 4.30 1,445 0.03% EL EL N/EL N/EL N/EL N/EL

4.1 Electricity generation using solar photovoltaic technology

CCM / CCA 4.1 586 0.01% EL EL N/EL N/EL N/EL N/EL

7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)

CCM / CCA 7.4 404 0.01% EL EL N/EL N/EL N/EL N/EL

8.2. Data-driven solutions for GHG emissions reductions

CCM 8.2 334 0.01% EL N/EL N/EL N/EL N/EL N/EL

4.22 Production of heat/cool from geothermal energy

CCM / CCA 4.22 330 0.01% EL EL N/EL N/EL N/EL N/EL

6.5 Transport by motorbikes, passenger cars and light commercial vehicles

CCM 6.5 104 0.00% EL N/EL N/EL N/EL N/EL N/EL

4.8 Electricity generation from bioenergy

CCM / CCA 4.8 42 0.00% EL EL N/EL N/EL N/EL N/EL

4.20 Cogeneration of heat/cool and power from bioenergy

CCM / CCA 4.20 10 0.00% EL EL N/EL N/EL N/EL N/EL

66,302 1.51% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00%

100.00%

66,302 1.51% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00%

100.00%

4,335,280 98.49%

4,401,582 100.00%

Turnover of Taxonomy-non-eligible activities

Total

Of which Enabling

Of which Transitional

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)

A. Turnover of Taxonomy-eligible activities (A.1+A.2)

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Year

Substantial contribution criteria

DNSH criteria

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report


In 2024, revenues from taxonomy-eligible activities at the parent company Petrol d.d., Ljubljana, amounted to EUR66.2 thousand, representing 1.51% of the total revenues of Petrol d.d., Ljubljana. These taxonomy-eligible revenues accounted for 69.28% of the total taxonomy-eligible revenues of the companies included in the Petrol Group analysis in Slovenia and Croatia, and 1.12% of the total revenues of these analysed companies.

Proportion of revenue from activities aligned or eligible under taxonomy in total revenues of Petrol Group and the parent company Petrol d.d., Ljubljana:

Petrol Group (Slovenia and Croatia) Proportion of turnover / Total turnover
Environmental goals Taxonomy-aligned per objective
CCM 0.00% 1.61%
CCA 0.00% 1.52%
WTR 0.00% 0.00%
EC 0.00% 0.00%
PPC 0.00% 0.00%
BIO 0.00% 0.00%

Revenue from taxonomy-eligible activities related to the environmental objective of climate change mitigation (CCM) accounted for 1.61% of the total revenue of the Petrol Group companies included in the analysis and 1.51% of the total revenue of Petrol d.d., Ljubljana. The share of revenue related to the climate change adaptation (CCA) objective is lower by the proportion attributable to activities 6.5 Transport by motorbikes, passenger cars and light commercial vehicles and 8.2 Data-driven solutions for GHG emissions reductions, which contribute exclusively to the first environmental objective.

Companies included in the analysis: Petrol d.d., Ljubljana; Petrol Skladiščenje d.o.o.; Petrol GEO d.o.o.; Petrol Pay d.o.o.; Geoplin d.o.o. Ljubljana; Atet d.o.o.; E 3, d.o.o.; Petrol d.o.o., Zagreb; Vjetroelektrane Glunča d.o.o.; and Zagorski metalac d.o.o.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Proportion of capital expenditure related to products or services associated with taxonomy-aligned economic activities – disclosure for Petrol Group (Slovenia and Croatia)

80, for 2024

Notes:

  • CCM: Climate Change Mitigation
  • CCA: Climate Change Adaptation
  • EL: Taxonomy-eligible activity for the relevant objective
  • N/EL: Taxonomy-non-eligible activity for the relevant objective

Companies included in the analysis: Petrol d.d., Ljubljana; Petrol Skladiščenje d.o.o.; Petrol GEO d.o.o.; Petrol Pay d.o.o.; Geoplin d.o.o. Ljubljana; Atet d.o.o.; E3, d.o.o.; Petrol d.o.o., Zagreb; Vjetroelektrane Glunča d.o.o.; and Zagorski metalac d.o.o.

Financial year 2024

Economic Activities Code CapEx in EUR thousand Proportion of CapEx, year 2024 Climate Change Mitigation Climate Change Adaptation Water Pollution Circular Economy Biodiversity Minimum safeguards Proportion of Taxonomy aligned (A.1.) or -eligible (A.2.) CapEx, year 2023 Category enabling activity Category transitional activity
Activity 0.00 0.00% N/EL N/EL N/EL N/EL N/EL N N N N
0.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% N N N N
0.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% N N N N
0.00 0.00% N N N N
7.2 Renovation of existing buildings 8,043 13.97% EL EL N/EL N/EL EL 13.63%
7.1 Construction of new buildings 7,436 12.91% EL EL N/EL N/EL EL 45.14%
6.15 Infrastructure enabling low-carbon road transport and public transport 3,457 6.00% EL EL N/EL N/EL N/EL N/EL 1.25%
6.5 Transport by motorbikes, passenger cars and light commercial vehicles 3,054 5.30% EL N/EL N/EL N/EL N/EL N/EL 7.31%
7.4 Installation, maintenance and repair of charging stations for

Electric Vehicles in Buildings (and Parking Spaces Attached to Buildings)

CCM / CCA 7.4

2,041 3.54% EL EL N/EL N/EL N/EL N/EL 0.00%

4.14 Transmission and Distribution Networks for Renewable and Low-Carbon Gases

CCM / CCA 4.14 508 0.88% EL EL N/EL N/EL N/EL N/EL 2.43%

4.1 Electricity Generation Using Solar Photovoltaic Technology

CCM / CCA 4.1 479 0.83% EL EL N/EL N/EL N/EL N/EL 18.82%

5.3 Construction, Extension and Operation of Wastewater Collection and Treatment

CCM / CCA 5.3 383 0.67% EL EL N/EL N/EL N/EL N/EL 0.39%

8.2 Data-Driven Solutions for GHG Emissions Reductions

CCM 8.2 299 0.52% EL N/EL N/EL N/EL N/EL 0.54%

4.30 High-Efficiency Cogeneration of Heat/Cool and Power from Gaseous Fossil Fuels

CCM / CCA 4.30 212 0.37% EL EL N/EL N/EL N/EL N/EL 0.00%

4.15 District Heating/Cooling Distribution

CCM / CCA 4.15 160 0.28% EL EL N/EL N/EL N/EL N/EL 0.27%

7.3 Installation, Maintenance and Repair of Energy Efficiency Equipment

CCM / CCA 7.3 140 0.24% EL EL N/EL N/EL N/EL N/EL 7.70%

4.3 Electricity Generation from Wind Power

CCM / CCA 4.3 42 0.07% EL EL N/EL N/EL N/EL N/EL 2.25%

4.16 Installation and Operation of Electric Heat Pumps

CCM / CCA 4.16 11 0.02% EL EL N/EL N/EL N/EL N/EL 0.00%

4.24 Production of Heat/Cool from Bioenergy

CCM / CCA 4.24 0 0.00% EL EL N/EL N/EL N/EL N/EL 0.15%

4.20 Cogeneration of Heat/Cool and Power from Bioenergy

CCM / CCA 4.20 0 0.00% EL EL N/EL N/EL N/EL N/EL 0.09%

7.5 Installation, Maintenance and Repair of Instruments and Devices for Measuring, Regulating and Controlling the Energy Performance of Buildings

CCM / CCA 7.5 0 0.00% EL EL N/EL N/EL N/EL N/EL 0.02%

7.6 Installation, Maintenance and Repair of Renewable Energy Technologies

CCM / CCA 7.6 0 0.00% EL EL N/EL N/EL N/EL N/EL 0.01%

Total

26,267 45.62% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%

CapEx of Taxonomy-Non-Eligible Activities

26,267 45.62% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%

A.2 Taxonomy-Eligible but Not Environmentally Sustainable Activities (Not Taxonomy-Aligned Activities)

CapEx of Taxonomy-Eligible but Not Environmentally Sustainable Activities (Not Taxonomy-Aligned Activities) (A.2)

A. CapEx of Taxonomy-Eligible Activities (A.1+A.2)

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Year

Substantial Contribution Criteria

DNSH criteria

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report 186

In calculating indicators related to capital expenditure, subsidies received for energy-efficient renovation projects were added to the net capital expenditure of Petrol Group companies in Slovenia and Croatia. These amounts were reflected in both the numerator and denominator for activity 7.3 Installation, maintenance and repair of energy efficiency equipment, for charging infrastructure projects under activity 6.15 Infrastructure enabling low-carbon road transport and public transport, and for projects involving construction of own photovoltaic power plants under activity 4.1 Electricity generation using solar photovoltaic technology.

In 2024, capital expenditure of Petrol Group companies in Slovenia and Croatia included in the analysis amounted to EUR 57,578 thousand, of which 45.62% (EUR 26,267 thousand) was related to taxonomy-eligible activities. The largest individual shares of taxonomy-eligible capital expenditure were contributed by activities 7.2 Renovation of existing buildings, 7.1 Construction of new buildings, 6.15 Infrastructure enabling low-carbon road transport and public transport, and 6.5 Transport by motorbikes, passenger cars and light commercial vehicles (together accounting for 83.72% of total taxonomy-eligible capital expenditure for the companies included in the analysis).

In 2024, compared to 2023, capital expenditure under activity 7.1. Construction of new buildings, increased significantly, while investment in activity 4.1 Electricity generation using solar photovoltaic technology decreased. Four activities had no new investments.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report 187

Proportion of capital expenditure related to products or services associated with taxonomy-aligned economic activities – disclosure for Petrol d.d., Ljubljana, for 2024

Economic Activities Code CapEx Proportion of CapEx, year 2024 Climate Change Mitigation Climate Change Adaptation Water Pollution Circular Economy Biodiversity Minimum safeguards

Proportion of Taxonomy aligned (A.1.) or -eligible (A.2.) CapEx, year 2023

Category enabling activity Category transitional activity in EUR thousand % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N % E T
Activity 0.00 0.00% N/EL N/EL N/EL N/EL N/EL N/EL N N N N N N 0.00% /
0.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% N N N N N N 0.00% E
0.00 0.00% 0.00% 0.00% N N N N N N 0.00% T
EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL
7.1 Construction of new buildings CCM / CCA 7.1 / CE 3.1 5,562 12.62% EL EL N/EL N/EL EL N/EL 51.83%
7.2 Renovation of existing buildings CCM / CCA 7.2 / CE 3.2 5,447 12.36% EL EL N/EL N/EL EL N/EL 5.65%
6.15 Infrastructure enabling low-carbon road transport and public transport CCM / CCA 6.15 3,427 7.77% EL EL N/EL N/EL N/EL N/EL 2.03%
7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCM / CCA 7.4 387 0.88% EL EL N/EL N/EL N/EL N/EL 0.00%
5.3 Construction, extension and operation of wastewater collection and treatment CCM / CCA 5.3 383 0.87% EL EL N/EL N/EL N/EL N/EL 1.10%
4.1 Electricity generation using solar photovoltaic technology CCM / CCA 4.1 353 0.80% EL EL N/EL N/EL N/EL N/EL 21.24%
8.2. Data-driven solutions for GHG emissions reductions CCM 8.2 299 0.68% EL N/EL N/EL N/EL N/EL 1.53%
4.30 High-efficiency cogeneration of heat/cool and power from gaseous fossil fuels CCM / CCA 4.30 212 0.48% EL EL N/EL N/EL N/EL N/EL 0.00%
4.14 Transmission and distribution networks for renewable and low-carbon gases CCM / CCA 4.14 201 0.46% EL EL N/EL N/EL N/EL N/EL 4.44%
4.15 District heating/cooling distribution CCM / CCA 4.15 160 0.36% EL EL N/EL N/EL N/EL N/EL 0.72%
7.3 Installation, maintenance and repair of energy efficiency equipment CCM / CCA 7.3 106 0.24% EL EL N/EL N/EL N/EL N/EL 11.13%
6.5 Transport by motorbikes, passenger cars and light commercial vehicles CCM 6.5 56 0.13% EL N/EL N/EL N/EL N/EL N/EL 0.00%
4.16 Installation and operation of electric heat pumps CCM / CCA 4.16 11 0.03% EL EL N/EL N/EL N/EL N/EL 0.00%
4.20 Cogeneration of heat/cool and power from bioenergy CCM / CCA 4.20 - 0.00% EL EL N/EL N/EL N/EL N/EL 0.26%
7.5 Installation, maintenance and repair of instruments and devices for measuring, regulating and controlling the energy performance of buildings CCM / CCA 7.5 0 0.00% EL EL N/EL N/EL N/EL N/EL 0.06%
7.6. Installation, maintenance and repair of renewable energy technologies CCM / CCA 7.6 0 0.00% EL EL N/EL N/EL N/EL N/EL 0.01%
Total 16,606 37.67% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) 16,606 37.67% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%
A. CapEx of Taxonomy-eligible activities (A.1+A.2) 27,474 62.33% 44,080 100.00%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

In 2024, capital expenditure related to taxonomy-eligible activities for Petrol d.d., Ljubljana, amounted to EUR 16,606 thousand, representing 37.67% of the company's total capital expenditure (EUR 44,080 thousand of total capital expenditure including subsidies).

Taxonomy-eligible capital expenditure of Petrol d.d., Ljubljana, accounted for 63.22% of the taxonomy-eligible capital expenditure in companies included in the analysis of the Petrol Group in Slovenia and Croatia, and 28.84% of the total capital expenditure of these companies.

Proportion of capital expenditure in activities aligned or eligible under the taxonomy within total capital expenditure of the Petrol Group and the parent company Petrol d.d., Ljubljana

Petrol Group (Slovenia and Croatia) Petrol d.d., Ljubljana
Proportion of CapEx / Total CapEx Proportion of CapEx / Total CapEx
Environmental goals
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 0.00% 45.62% 0.00% 37.67%
CCA 0.00% 39.80% 0.00% 39.80%
WTR 0.00% 0.00% 0.00% 0.00%
EC 0.00% 26.88% 0.00% 24.98%
PPC 0.00% 0.00% 0.00% 0.00%
BIO 0.00% 0.00% 0.00% 0.00%

The share of capital expenditure related to taxonomy-eligible activities for the environmental objective of climate change mitigation (CCM) accounted for 45.62% of the total capital expenditure of the Petrol Group companies included in the analysis, and 37.67% of the total.

Capital Expenditure of Petrol d.d., Ljubljana

The percentage of capital expenditure related to the objective of climate change adaptation (CCA) is lower, as activities 6.5 Transport by motorbikes, passenger cars and light commercial vehicles, and 8.2 Data-driven solutions for GHG emissions reductions contribute only to the first environmental objective. Activities 7.1 Construction of new buildings and 7.2 Renovation of existing buildings also contribute to the environmental objective of transitioning to a circular economy (CE).

Companies included in the analysis:

Petrol d.d., Ljubljana; Petrol Skladiščenje d.o.o.; Petrol GEO d.o.o.; Petrol Pay d.o.o.; Geoplin d.o.o. Ljubljana; Atet d.o.o.; E 3, d.o.o.; Petrol d.o.o., Zagreb; Vjetroelektrane Glunča d.o.o.; and Zagorski metalac d.o.o.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Proportion of operating expenditure related to products or services associated with taxonomy-aligned economic activities – disclosure for Petrol Group (Slovenia and Croatia)

Financial year 2024

Economic Activities (1) Code OpEx Proportion of OpEx, year 2024 Climate Change Mitigation Climate Change Adaptation Water Pollution Circular Economy Biodiversity Minimum safeguards Proportion of Taxonomy aligned (A.1.) or -eligible (A.2.) OpEx, year 2023 Category enabling activity Category transitional activity
Activity 0.00 0.00% N/EL N/EL N/EL N/EL N/EL N/EL N N N N
0.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% N N N N N
0.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% N N N N N

Notes:

CCM: Climate Change Mitigation

CCA: Climate Change Adaptation

EL: Taxonomy-eligible activity for the relevant objective

N/EL: Taxonomy-non-eligible activity for the relevant objective

4.14 Transmission and distribution networks for renewable and low-carbon gases

CCM / CCA 4.14 1,333 7.33% EL EL N/EL N/EL N/EL N/EL 29.70%

7.3 Installation, maintenance and repair of energy efficiency equipment

CCM / CCA 7.3 770 4.24% EL EL N/EL N/EL N/EL N/EL 13.03%

4.15 District heating/cooling distribution

CCM / CCA 4.15 452 2.48% EL EL N/EL N/EL N/EL N/EL 7.95%

5.1 Construction, extension and operation of water collection, treatment and supply systems

CCM / CCA 5.1 390 2.14% EL EL N/EL N/EL N/EL N/EL 8.35%

4.30 High-efficiency cogeneration of heat/cool and power from gaseous fossil fuels

CCM / CCA 4.30 389 2.14% EL EL N/EL N/EL N/EL N/EL 6.53%

4.3 Electricity generation from wind power

CCM / CCA 4.3 296 1.63% EL EL N/EL N/EL N/EL N/EL 5.15%

4.24 Production of heat/cool from bioenergy

CCM / CCA 4.24 254 1.40% EL EL N/EL N/EL N/EL N/EL 5.67%

5.3 Construction, extension and operation of wastewater collection and treatment

CCM / CCA 5.3 228 1.25% EL EL N/EL N/EL N/EL N/EL 5.72%

6.5 Transport by motorbikes, passenger cars and light commercial vehicles

CCM 6.5 187 1.03% EL N/EL N/EL N/EL N/EL N/EL 3.82%

6.15 Infrastructure enabling low-carbon road transport and public transport

CCM / CCA 6.15 171 0.94% EL EL N/EL N/EL N/EL N/EL 2.14%

4.31 Production of heat/cool from gaseous fossil fuels in an efficient district heating and cooling system

CCM / CCA 4.31 142 0.78% EL EL N/EL N/EL N/EL N/EL 2.01%

4.9 Transmission and distribution of electricity

CCM / CCA 4.9 120 0.66% EL EL N/EL N/EL N/EL N/EL 3.03%

4.8 Electricity generation from bioenergy

CCM / CCA 4.8 77 0.42% EL EL N/EL N/EL N/EL N/EL 3.37%

4.22 Production of heat/cool from geothermal energy

CCM / CCA 4.22 47 0.26% EL EL N/EL N/EL N/EL N/EL 0.77%

4.1 Electricity generation using solar photovoltaic technology

CCM / CCA 4.1 28 0.15% EL EL N/EL N/EL N/EL N/EL 0.95%

7.6 Installation, maintenance and repair of renewable energy technologies

CCM / CCA 7.6 17 0.09% EL EL N/EL N/EL N/EL N/EL 1.29%

7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)

CCM / CCA 7.4 9 0.05% EL EL N/EL N/EL N/EL N/EL 0.08%

4.20 Cogeneration of heat/cool and power from bioenergy

CCM / CCA 4.20 1 0.01% EL EL N/EL N/EL N/EL N/EL 0.00%

8.2 Data-driven solutions for GHG emissions reductions

CCM 8.2 1 0.01% EL N/EL N/EL N/EL N/EL N/EL 0.44%

OpEx of Taxonomy-non-eligible activities

Total 4,913 27.02% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%
Of which Enabling 4,913 27.02% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%
Of which Transitional 13,271 72.98%

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)

A. OpEx of Taxonomy-eligible activities (A.1+A.2)

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report 190

Public

Operating costs under the Taxonomy Regulation for taxonomy-eligible activities of the companies included in the analysis in Slovenia and Croatia amounted to EUR 4,913 thousand in 2024, representing 27.02 percent of the total operating expenses of the selected companies.

In 2024, the largest contribution to taxonomy-eligible operating expenses came from activities 4.14 Transmission and distribution networks for renewable and low-carbon gases, 7.3 Installation, maintenance and repair of energy efficiency equipment, and 4.15 District heating/cooling distribution (together accounting for 52.01% of all taxonomy-eligible operating expenses for companies included in the analysis).

There were no significant changes in the ranking of activities by operating expenses in 2024 compared to 2023.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report 191

Public

Proportion of operating costs related to products or services associated with taxonomy-aligned economic activities – disclosure for Petrol d.d., Ljubljana, for 2024

Economic Activities (1) Code OpEx Proportion of OpEx, year 2024 Climate Change Mitigation Climate Change Adaptation Water Pollution Circular Economy Biodiversity

Notes:

  • CCM: Climate Change Mitigation
  • CCA: Climate Change Adaptation
  • EL: Taxonomy-eligible activity for the relevant objective
  • N/EL: Taxonomy-non-eligible activity for the relevant objective

Financial year 2024

Minimum safeguards

Proportion of Taxonomy aligned (A.1.) or -eligible (A.2.) OpEx, year 2023

Category enabling activity

Category transitional


4.14 Transmission and distribution networks for renewable and low-carbon gases

CCM / CCA 4.14 1,055 10.04% EL EL N/EL N/EL N/EL N/EL N/EL

7.3 Installation, maintenance and repair of energy efficiency equipment

CCM / CCA 7.3 767 7.30% EL EL N/EL N/EL N/EL N/EL N/EL

5.1 Construction, extension and operation of water collection, treatment and supply systems

CCM / CCA 5.1 390 3.71% EL EL N/EL N/EL N/EL N/EL N/EL

4.30 High-efficiency cogeneration of heat/cool and power from gaseous fossil fuels

CCM / CCA 4.30 278 2.64% EL EL N/EL N/EL N/EL N/EL N/EL

4.15 District heating/cooling distribution

CCM / CCA 4.15 277 2.63% EL EL N/EL N/EL N/EL N/EL N/EL

5.3 Construction, extension and operation of wastewater collection and treatment

CCM / CCA 5.3 228 2.17% EL EL N/EL N/EL N/EL N/EL N/EL

4.24 Production of heat/cool from bioenergy

CCM / CCA 4.24 183 1.74% EL EL N/EL N/EL N/EL N/EL N/EL

4.9 Transmission and distribution of electricity

CCM / CCA 4.9 120 1.14% EL EL N/EL N/EL N/EL N/EL N/EL

6.15 Infrastructure enabling low-carbon road transport and public transport

CCM / CCA 6.15 115 1.09% EL EL N/EL N/EL N/EL N/EL N/EL

4.8 Electricity generation from bioenergy

CCM / CCA 4.8 77 0.73% EL EL N/EL N/EL N/EL N/EL N/EL

6.5 Transport by motorbikes, passenger cars and light commercial vehicles

CCM 6.5 51 0.49% EL N/EL N/EL N/EL N/EL N/EL N/EL

4.22 Production of heat/cool from geothermal energy

CCM / CCA 4.22 47 0.45% EL EL N/EL N/EL N/EL N/EL N/EL

4.31 Production of heat/cool from gaseous fossil fuels in an efficient district heating and cooling system

CCM / CCA 4.31 38 0.36% EL EL N/EL N/EL N/EL N/EL N/EL

4.1 Electricity generation using solar photovoltaic technology

CCM / CCA 4.1 28 0.26% EL EL N/EL N/EL N/EL N/EL N/EL

7.6 Installation, maintenance and repair of renewable energy technologies

CCM / CCA 7.6 17 0.16% EL EL N/EL N/EL N/EL N/EL N/EL

7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)

CCM / CCA 7.4 9 0.09% EL EL N/EL N/EL N/EL N/EL N/EL

4.20 Cogeneration of heat/cool and power from bioenergy

CCM 4.20 1 0.01% EL EL N/EL N/EL N/EL N/EL

8.2. Data-driven solutions for GHG emissions reductions

CCM 8.2 1 0.01% EL N/EL N/EL N/EL N/EL
0.59% 3,683 35.04% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00%
100.00% 3,683 35.04% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00%
100.00% 6,827 64.96% 10,510 100.00%

OpEx of Taxonomy-non-eligible activities

Total

Of which Enabling

Of which Transitional

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

(g)

OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)

A. OpEx of Taxonomy-eligible activities (A.1+A.2)

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Year

Substantial contribution criteria

DNSH criteria

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Operating expenses related to taxonomy-eligible activities for Petrol d.d., Ljubljana, amounted to EUR 3,683 thousand in 2024, representing 35.04% of the company's total operating expenses (EUR 10,510 thousand total operating expenses).

Taxonomy-eligible operating expenses of Petrol d.d., Ljubljana, accounted for 74.97% of the taxonomy-eligible operating expenses of companies included in the analysis of the Petrol Group in Slovenia and Croatia, and 20.25% of total operating expenses of the companies included in this analysis.

Proportion of operating expenses related to taxonomy-aligned or taxonomy-eligible activities within total operating expenses of Petrol Group and the parent company Petrol d.d., Ljubljana

Petrol Group (Slovenia and Croatia) 83
Petrol d.d., Ljubljana Proportion of OpEx / Total OpEx
Proportion of OpEx / Total OpEx Environmental goals
Taxonomy-aligned per objective Taxonomy-aligned per objective Taxonomy-eligible per objective Taxonomy-aligned per objective
CCM 0.00% 27.02% 0.00% 35.04%
CCA 0.00% 25.98% 0.00% 34.54%
WTR

Operating expenses related to taxonomy-eligible activities under the environmental objective of climate change mitigation (CCM) represented 27.2% of the total operating expenses of Petrol Group companies included in the analysis, and 35.04% of the operating expenses of Petrol d.d., Ljubljana.

The percentage of operating expenses related to the climate change adaptation (CCA) objective is lower due to the exclusion of activities 6.5 Transport by motorbikes, passenger cars and light commercial vehicles and 8.2 Data-driven solutions for GHG emissions reductions, which contribute solely to the first environmental objective.

Explanation of the relationship between capital expenditure and operating expenses

In 2024, capital expenditure related to taxonomy-eligible activities amounted to EUR 26,267 thousand, representing 45.62 percent of total capital expenditure of the companies included in the analysis, which accounted for 90.94 percent of the Petrol Group’s total capital expenditure.

Operating expenses, as defined by the Taxonomy Regulation, for companies included in the analysis in 2024 amounted to EUR 4,913 thousand, representing 27.02 percent of the total operating expenses of the selected companies, which together accounted for 90.13 percent of total operating expenses of the Petrol Group.

Companies included in the analysis:

Petrol d.d., Ljubljana; Petrol Skladiščenje d.o.o.; Petrol GEO d.o.o.; Petrol Pay d.o.o.; Geoplin d.o.o. Ljubljana; Atet d.o.o.; E 3, d.o.o.; Petrol d.o.o., Zagreb; Vjetroelektrane Glunča d.o.o.; and Zagorski metalac d.o.o.

Capital Expenditure and Operating Expenses

Capital expenditure related to taxonomy-eligible activities was thus 5.3 times greater than operating expenses dedicated to maintenance within taxonomy-eligible activities.

A significant portion of activities aimed at improving energy efficiency was directed toward new construction and renovation of service stations, as reflected by investments in property, plant and equipment, which represented 58.93 percent of total investments in taxonomy-eligible activities in 2024.

Capital expenditure significantly exceeded operating expenses in the following activities:

  • 6.15 Infrastructure enabling low-carbon road transport and public transport
  • 6.5 Transport by motorbikes, passenger cars and light commercial vehicles
  • 7.5 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)
  • 4.14 Transmission and distribution networks for renewable and low-carbon gases
  • 4.1 Electricity generation using solar photovoltaic technology
  • 5.3 Construction, extension and

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

8.2 Data-driven solutions for GHG emissions reductions

Capital expenditure reflected the Petrol Group's energy transition priorities for the 2021–2025 strategic period, emphasizing improvements in energy efficiency, investments in renewable energy production, development of sustainable mobility, and smart energy management. The strategic goal of allocating 35 percent of capital expenditure toward the energy transition was exceeded on an annual basis in 2024 (45.62%).

Operating expenses significantly exceeded capital expenditure in the following activities, primarily involving maintenance of existing infrastructure:

  • 4.14 Transmission and distribution networks for renewable and low-carbon gases
  • 4.1 Electricity generation using solar photovoltaic technology
  • 5.3 Construction, extension and operation of wastewater collection and treatment systems
  • 8.2 Data-driven solutions for GHG emissions reductions
  • 4.30 High-efficiency cogeneration of heat/cool and power from gaseous fossil fuels
  • 4.15 District heating/cooling distribution
  • 7.3 Installation, maintenance and repair of energy efficiency equipment
  • 4.3 Electricity generation from wind power
  • 4.16 Installation and operation of electric heat pumps
  • 4.24 Production of heat/cool from bioenergy
  • 4.20 Cogeneration of heat/cool and power from bioenergy
  • 7.5 Installation, maintenance, and repair of instruments and devices for measuring, regulating, and controlling the energy efficiency of buildings
  • 7.6 Installation, maintenance and repair of renewable energy technologies
  • 5.1 Construction, extension and operation of water collection, treatment and supply systems
  • 4.31 Production of heat/cool from gaseous fossil fuels in an efficient district heating and cooling system
  • 4.9 Transmission and distribution of electricity
  • 4.8 Electricity generation from bioenergy
  • 4.22 Production of heat/cool from geothermal energy

Operating costs of the entire Group according to the Taxonomy Regulation amounted to EUR 20,174 thousand in 2024 and are included in the disclosure of total operating costs in Chapter 4.2 "Petrol Group Operations," table "Operating costs of the Petrol Group."

All taxonomy-eligible investments are included, including capital expenditure related to new construction and renovation of buildings. The methodology differs from the calculation approach used to define energy transition investments in the chapter Investments of the Business Report.

Additional disclosures for activities in the fields of nuclear energy and natural gas

The tables below provide additional disclosures regarding the proportions of taxonomy-eligible key performance indicators for activities 4.30 High-efficiency cogeneration of heat/cool and power from gaseous fossil fuels and 4.31 Production of heat/cool from gaseous fossil fuels in an efficient district heating and cooling system, which are related to natural gas.

Commission Delegated Regulation (EU) 2022/1214.

Turnover – additional disclosures for key performance indicator

Row 1. 2. 3. 4. 5. 6.
in EUR thousand % in EUR thousand % in EUR thousand %
1. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

2. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

3. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

4. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

5. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

6. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

7. Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

8. Total applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 00.00% 0 0.00%

Climate change adaptation (CCA)

Template 2 Taxonomy-aligned economic activities (denominator)

Row Economic activities Petrol group (Slovenia and Croatia) Petrol d.d., Ljubljana (unaudited) CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA)
1 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. NO
2 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. YES
3 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. YES
4 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. NO
5 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. NO

Fossil gas related activities

Template 1 Nuclear and fossil gas related activities

Nuclear energy related activities

The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.

NO

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

196 Public

in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand %

Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00%

Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00%

Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00%

Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00%

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00%

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00%

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00%

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00%

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

1,877 1.96% 1,877 1.96% 0 0.00% 1,445 2.18% 1,445 2.18% 0 0.00%

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

4,670 4.88% 4,670 4.88% 0 0.00% 4,428 6.68% 4,428 6.68% 0 0.00%

Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the


8.

Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI

95,703 100.00% 95,703 100.00% 0 0.00% 66,302 100.00% 66,302 100.00% 0 0.00%

CCM + CCA

Climate change mitigation (CCM)

Climate change adaptation (CCA)

Climate change mitigation (CCM)

Climate change adaptation (CCA)

Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities

Row Economic activities
Petrol group (Slovenia and Croatia) Petrol d.d., Ljubljana (unaudited)
CCM + CCA Climate change mitigation (CCM)
Climate change adaptation (CCA)

Template 3 Taxonomy-aligned economic activities (numerator)

Row Economic activities
Petrol group (Slovenia and Croatia) Petrol d.d., Ljubljana (unaudited)
CCM + CCA Climate change mitigation (CCM)
Climate change adaptation (CCA)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Public

Row Economic activities in EUR thousand Percentage in EUR thousand Percentage
1. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00%
2. Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00%
3. Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00%
4. Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00%
5. Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00%
6. Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00%
7. Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 5,846,222 100.00%

8. Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI

5,846,222 100.00% 4,335,280 100.00%

Template 5 Taxonomy non-eligible economic activities

Petrol group (Slovenia and Croatia)

Petrol d.d., Ljubljana (unaudited)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Public

Capital expenditure – additional disclosures for key performance indicator

Row in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand %
1. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
2. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
3. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
4. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
5. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
6. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
7. Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
8. Total applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

Climate change adaptation (CCA)

Template 2 Taxonomy-aligned economic activities (denominator)

Row

Economic activities

Petrol group (Slovenia and Croatia)

Petrol d.d., Ljubljana (unaudited)

CCM + CCA

Climate change mitigation (CCM)

Climate change adaptation (CCA)

CCM + CCA

Climate change mitigation (CCM)

The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.

NO

The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Fossil gas related activities

Template 1 Nuclear and fossil gas related activities

Nuclear energy related activities

The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.

The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.

The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.

The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.

in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand %
1. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
2. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
3. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
4. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
5. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
6. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
7. Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
8. Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand %
1. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
2. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

3.

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

4.

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

5.

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

212 0.81% 212 0.81% 0 0.00% 212 1.28% 212 1.28% 0 0.00%

6.

Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%

7.

Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI

26,055 99.19% 26,055 99.19% 0 0.00% 16,393 98.72% 16,393 98.72% 0 0.00%

8.

Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI

26,267 100.00% 26,267 100.00% 0 0.00% 16,606 100.00% 16,606 100.00% 0 0.00%

CCM + CCA

Climate change mitigation (CCM)

Climate change adaptation (CCA)

Climate change mitigation (CCM)

Climate change adaptation (CCA)

Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities

Row Economic activities
Petrol group (Slovenia and Croatia) Petrol d.d., Ljubljana (unaudited)
CCM + CCA Climate change mitigation (CCM)
Climate change adaptation (CCA)

Template 3 Taxonomy-aligned economic activities (numerator)

Row Economic activities
Petrol group (Slovenia and Croatia) Petrol d.d., Ljubljana (unaudited)
CCM + CCA Climate change mitigation (CCM)
Climate change adaptation (CCA)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Row Economic activities in EUR thousand Percentage in EUR thousand Percentage

1. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00%
2. Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00%
3. Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Template 5 Taxonomy non-eligible economic activities

Petrol group (Slovenia and Croatia)

Petrol d.d., Ljubljana (unaudited)

Operating expenditure – additional disclosures for key performance indicator

Row in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand % in EUR thousand %
1. 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
2. 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
3. 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
4. 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
5. 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
6. 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
7. 31,311 100.00% 27,474 100.00%
8. 31,311 100.00% 27,474 100.00%

Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00%

6. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00%

7. Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00%

8. Total applicable KPI

0 0.00% 0 0.00% 0 0.00%

Climate change adaptation (CCA)

Template 2 Taxonomy-aligned economic activities (denominator)

Row Economic activities Petrol group (Slovenia and Croatia) Petrol d.d., Ljubljana (unaudited) CCM + CCA
1 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. NO
2 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. YES
3 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. YES
4 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. NO
5 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. NO

Fossil gas related activities

Template 1 Nuclear and fossil gas related activities

Nuclear energy related activities

The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. NO

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

in EUR thousand % in EUR thousand % in EUR thousand %
1. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00%
2. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00%
3. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00%
4. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the

Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities

Row Economic activities in EUR thousand % in EUR thousand % in EUR thousand %
1. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00%
2. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00%
3. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00%
4. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0 0.00%
5. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 389 7.91% 389 7.91% 0 0.00%
6. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 142 3.25% 142 3.25% 0 0.00%
7. Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 4,382 89.19% 4,382 89.19% 0 0.00%
8. Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI 4,913 100.00% 4,913 100.00% 0 0.00%

denominator of the applicable KPI

0 0.00% 0 0.00% 0 0.00%

CCM + CCA

Climate change mitigation (CCM)

Climate change adaptation (CCA)

Petrol group (Slovenia and Croatia)

Petrol d.d., Ljubljana (unaudited)

Climate change adaptation (CCA)

Template 3 Taxonomy-aligned economic activities (numerator)

Row Economic activities Petrol group (Slovenia and Croatia) Petrol d.d., Ljubljana (unaudited) CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) CCM + CCA
1. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00%
2. Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00%
3. Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00%
4. Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00%
5. Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00%
6. Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00%
7. Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 13,271 100.00% 6,827 100.00%
8. Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI 13,271 100.00% 6,827 100.00%

Template 5 Taxonomy non-eligible economic activities

Petrol group (Slovenia and Croatia)

Petrol d.d., Ljubljana (unaudited)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

E1 - CLIMATE CHANGE

The Petrol Group has included environmental performance and the fight against climate change as one of the cornerstones of its strategic development and sustainable management.

system. It is aware of the contribution of its business activities to the achievement of national climate targets, and the need for further energy transformation which will allow both the Petrol Group and wider society to adapt to climate change.

The double materiality assessment (see ESRS 2 IRO-1 and E1.IRO-1) has allowed us to identify the actual and potential negative and positive climate change mitigation impacts of our activities. The carbon footprint represents a negative actual impact of our activities. Actual and potential positive impacts on climate change mitigation are created through efficient energy use in our own operations and through services that support climate change mitigation along the downstream value chain. These positive impacts have a growth trend in the future.

In the energy sector, there is an actual negative impact due to our activities of marketing petroleum products, natural gas, liquefied petroleum gas (LPG89), compressed natural gas (CNG90), and supplying district heating. This impact, which is present along the entire value chain, has a long-term downward trend. We also recognise the (non-)guaranteeing of a mandatory market share for advanced biofuels and related infrastructure as a potential negative impact, which arises from market mechanisms that have not been established yet or financial and technical challenges. This impact is also present along the entire value chain.

A positive impact is created through activities that include the generation and marketing of renewable energy sources, which is also present along the entire value chain. Additional positive impacts from a climate change perspective arise from reducing the carbon footprint of fuels, increasing the share of fuels with a higher share of renewable energy (biofuels), increasing the share of natural gas as an energy commodity used for the energy transition, and from additivated fuels (private label), which contributes to more efficient energy use and consequently reducing greenhouse gas emissions and mitigating climate change. These positive impacts have a long-term growth trend.

We have also identified a financially material opportunity, which is trending upwards, namely market opportunities for further growth in fossil fuel distribution. This opportunity affects the entire value chain.

89 Slovenian: UNP – Utekočinjeni naftni plin

90 Slovenian: Stisnjeni zemeljski plin

The Petrol Group has included environmental performance and the fight against climate change as one of the cornerstones of its strategic development and sustainable management system.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

E1.GOV-3 Integration of sustainability-related performance in incentive schemes

Climate considerations are included in the remuneration of members of the management and supervisory bodies in accordance with the adopted Remuneration Policy for Management and Supervisory Bodies. The policy stipulates that remuneration consists of a fixed and a variable component, with the variable component directly linked to the achievement of financial and non-financial criteria that contribute to Petrol's short-term and long-term performance.

Climate-related aspects are embedded within the non-financial criteria, which represent at least one third of the total variable remuneration. These criteria are further detailed in the ESRS 2 GOV-3 disclosure. As the exact allocation between individual indicators is not specifically

quantified, it is estimated that approximately 20 percent of recognised remuneration is linked to climate-related aspects. This estimate is based on the integration of climate targets into Petrol’s strategic orientations, including greenhouse gas (GHG) emissions reduction, sustainable resource management, and compliance with environmental legislation. This way, Petrol d.d., Ljubljana, ensures that climate considerations constitute a key part of the incentive and remuneration system for management and supervisory bodies—supporting long-term resilience, sustainable growth, and the alignment of business strategy with environmental objectives.

E1.GOV-3

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

E1-1 Transition plan for climate change mitigation

The Petrol Group supports the Paris Agreement and the EU's commitments to decarbonise by 2050, which means that we are actively committed to preventing and mitigating climate change. At the same time, we strive to ensure a reliable supply of energy at an affordable price, which is important for social well-being. As a major energy company and group in the region, we are implementing several complex activities and programmes aimed at defossilisation and the implementation of the national energy and climate plan (see E1-3, E1-4).

We are currently developing a comprehensive transition plan for climate change mitigation, as part of the new 2026-2030 business strategy currently in preparation. It will also set targets related to limiting global warming to 1.5°C in line with the Paris Agreement.

We anticipate that the action plan, which Petrol will develop by 2027 and which will be approved by the Management Board, will define concrete steps and a timeline for achieving key targets such as the reduction of GHG emissions, improved energy efficiency, the shift to low-carbon technologies, and sustainable resource management. The action plan will be aligned with legislative developments, as well as technological and market signals.

As part of its energy transition in the strategic 2021–2025 period, the Petrol Group focused on long-term reduction of the carbon footprint of its operations, increasing energy efficiency, and generating and selling less carbon-intensive energy. Achieving these objectives relies on operational expenditures (OpEx) and investments in fixed assets (CapEx).

In 2024, Petrol invested in the energy transition, with a focus on:

  • expanding its portfolio of renewable energy sources (investments in solar and wind power plants and the development of energy storage projects).
  • green transport and e-mobility (deployment of electric vehicle charging stations and alternative fuels).
  • optimising energy efficiency (achieving energy savings, energy-efficient construction and renovation of buildings and heating systems, etc.).
  • digitalisation and smart energy (development of digital platforms for energy management, consumption optimisation, and smart power supply).

To ensure effective energy transition investments, the Petrol Group also allocates significant operating costs, which include:

  • research and development (exploring new technologies for emission reduction, energy efficiency, and sustainability-oriented process optimisation).
  • maintenance and upgrading of sustainable systems (operating costs for managing renewable energy infrastructure, energy management systems and compliance with regulatory requirements);

Achieving these objectives relies on operational expenditures (OpEx) and investments in fixed assets (CapEx).

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Public

• education and training programmes (investment in workforce development, with a focus on sustainable competencies, green technologies, and ESG standards).

Through capital investments and operating expenses eligible under the EU Taxonomy, the Company is actively contributing to climate change mitigation. The energy transition defines priority investment areas, including:

  • implementing low-carbon energy solutions through business model development.
  • introducing sustainable mobility and transport models.
  • increasing the share of carbon-neutral energy in Petrol's portfolio.
  • digitalisation and optimisation of energy efficiency in its operations.

Operating costs allocated to the Strategic Energy Transition Action Plan amounted to EUR 90,749,929 in 2024.

In 2024, the Petrol Group allocated EUR 13,623,266 for capital expenditure. Of this amount, EUR 5,871,810 was dedicated to implementing the energy transition action plan of Petrol d.d., Ljubljana, E 3, d.o.o., Geoplin d.o.o., Ljubljana and Petrol d.o.o. (Zagreb) — that is, within the scope of the Petrol Group’s limited consolidation.

The Petrol Group regularly assesses the compliance of its economic activities with the criteria set out in Commission Delegated Regulation 2021/2139. Energy transition activities — with the exception of electricity and natural gas trading and the marketing of CNG and LPG — are currently Taxonomy-eligible. Further alignment with the criteria will be explored going forward.

In line with its energy transition strategy, the Petrol Group will continue to invest in existing activities, with a focus on expanding renewable energy sources, developing electromobility infrastructure, introducing advanced energy solutions, and enhancing energy efficiency.

The continued development of Taxonomy-aligned activities will depend on future strategic directions and regulatory frameworks.

The locked-in emissions from key assets and products are mainly represented by the following categories:

  • fossil fuel distribution infrastructure (Petrol uses optimised infrastructure facilities, such as warehouses, pipelines and distribution channels, to distribute and sell fossil fuels);
  • combustion of energy products at end customers (Petrol's main products, petroleum products and related products, cause emissions at end customers during combustion, which accounts for the largest share of Petrol's Scope 3 emissions).

Locked-in emissions from key activities do not jeopardise the current decarbonisation target, as this target currently covers Scope 1 and 2 emissions. As part of its 2026-2030 strategy, Petrol will prepare a comprehensive climate change mitigation action plan, which will also encompass the development of sustainable business models and, consequently, a plan to reduce the volume of locked-in emissions. The action plan will outline concrete measures for gradually reducing the dependence on carbon-intensive energy sources in a commercially and financially sustainable manner, while increasing the generation and use of renewable energy sources.

The Petrol Group does not engage in coal-related activities; therefore, no investment costs are incurred in this area. In 2024, the Group allocated EUR 20,445,926 to oil-related activities within Petrol d.d. Ljubljana and Petrol d.o.o. (Zagreb). The largest investments in Slovenia included the renovation of the Barje S and Barje J service stations, the refurbishment of the

Dunajska 70 location in Ljubljana, and the installation of central fuel dispensers in compliance with legal requirements. Other smaller-scale service station renovations were also carried out. Risk mitigation and regulatory compliance measures were implemented at all storage facilities. The Group is also undertaking the Oil & Gas project, aimed at the digitalisation of the supply chain. In the Croatian market, major renovations and rebranding of service stations were completed, including the construction of the Dragalić S site. Ongoing investment maintenance was carried out in all companies.

In gas-related activities, Petrol invested a total of EUR 1,417,428 in 2024. Of this, EUR 192,221 was allocated to investments in natural gas distribution concessions at Petrol d.d. Ljubljana and in a trading platform at Geoplin d.o.o. Ljubljana. In addition, the sale of CNG was introduced at the renovated Barje S and Barje J service stations, with this investment totalling EUR 1,225,207.

Petrol is excluded from the benchmarks aligned with the Paris Agreement.

E1.SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model

As part of its integrated risk and opportunity management and the double materiality assessment, the Petrol Group assessed both physical and transition climate-related risks in the short, medium and long term. Physical climate risks refer to the financial impact of climate change on the Petrol Group's operations — either directly through material damage and reduced productivity, or indirectly via supply chain disruptions and other operational consequences. These risks include acute events (e.g. floods, heat waves, storms) and chronic changes (e.g. rising temperatures, water scarcity, melting ice), which may impact operational stability over the long term.

Transition risks relate to the financial, operational, and strategic challenges faced by the Petrol Group during the shift to a low-carbon and more sustainable economy. These risks stem from regulatory changes, technological developments, market fluctuations, and evolving societal expectations. They may affect operations directly or indirectly via supply chains, demand, or price pressures. The assessment is based on a climate scenario aligned with the 1.5°C global warming limit (without overshoot).

The Petrol Group’s physical climate risk assessment shows that no risk exceeds the moderate level or the Group’s materiality threshold of EUR 25 million. For all identified physical risks—particularly in the short and medium term—the Group has already defined appropriate measures, which are implemented as needed.

Likewise, none of the identified transition risks exceed the materiality threshold. Challenges in this area primarily relate to green transition legislation, ambiguous market signals, and the limited commercial readiness of green technologies.

In 2024, the Petrol Group conducted a resilience analysis as part of the double materiality assessment. The analysis covered all activities above the materiality threshold, all operating geographies, and relevant value chains, based on available data. It addressed the short-, medium-, and long-term timeframes.

Scenario analysis was applied to assess climate risks. National-level data on physical climate changes—presented through the four Representative Concentration Pathways (RCPs)—were used in line with the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report (AR6).

Overview of AR6 and AR5 climate scenarios and key variables

Climate scenarios (IPCC, AR6 and AR5) Variables (conditions) – global
Air temperature changes (in °C) Precipitation (in mm or %)
Sea level rise (in cm) by 2100
SSP1–1.9 T increase of 1.5°C by 2050
between 1.5 and 4.5% by 2100
28–55 cm
SSP1–2.6 RCP 2.6
T increase of 1.8°C by 2100 between 1.8 and 5.4% by 2100
32–62 cm
SSP2–4.5 RCP 4.5
T increase of 2.7°C by 2100 between 2.7 and 8.1% by 2100
44–76 cm
SSP3–7.0 RCP 6.0
T increase of 3.6°C by 2100 between 3.6 and 10.8% by 2100
58–98 cm
SSP5–8.5 RCP 8.5
T increase of 4.4°C by 2100 between 4.4 and 13.2% by 2100
63–101 cm

The Petrol Group's resilience to all types of physical climate risks is high, as the Group adequately manages the moderate risks to which it is exposed through planned and well-implemented actions and the implementation of adjustments. Similar prospects also apply to the medium and long term. Adequate insurance arrangements (proper collateral) and financial preparedness allow it to reduce long-term financial consequences. Material changes to the business model on account of adapting to physical climate risks are not required in any time frame (short, medium and long term).

IPCC AR6 - Intergovernmental Panel on Climate Change (Sixth Assessment Report)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

The Petrol Group has no so-called high risks or risks above the materiality threshold in the area of transition climate risks. All identified risks are actively managed, so the Petrol Group's resilience is not assessed as low in any area. The Petrol Group's moderate resilience is recognised in the following areas: authorisations.

and regulation of existing products and services, authorisations and regulation of existing production processes, exposure to litigation, replacement of existing products and services with potentially lower emissions, costs of transitioning to lower emission technologies, shifting customer behaviour, uncertainty of market signals, and higher raw material costs. Most of these areas are strongly dependent on market and political conditions, the development of green technologies, and consumer or buyer preferences. The Petrol Group's impact in these areas is limited. However, they are carefully monitored and managed. The long-term resilience of the Petrol Group in these areas is expected to increase further with further adaptation of the business model and strategic restructuring.

The Petrol Group has high resilience in the following areas: increasing GHG emission prices, strengthened reporting obligations on GHG emissions, (un)successful investments in new technologies, changes in consumer preferences, stigmatisation of the sector, increased concern from stakeholder groups, and negative feedback from stakeholders. All these areas are closely monitored and managed, and the business model is adapted accordingly to ensure a proactive and effective response to evolving conditions.

Key elements of strategic and business model adaptability are already embedded in existing processes and planning, enabling us to proactively manage climate risks and opportunities.

  • Business model adaptation: Petrol conducts analyses to diversify its product and service portfolio, with a focus on low-carbon solutions and renewable energy. This ensures alignment with market expectations and regulatory frameworks, strengthening long-term competitiveness.
  • Securing access to financing: Active engagement with investors and financial institutions supports access to capital on favourable terms for financing sustainable transition projects.
  • Asset reallocation and upgrading: Existing assets are continuously reviewed to identify opportunities for optimisation, modernisation, or gradual decommissioning, improving alignment with environmental goals and optimising financial flows.
  • Product and service shift: Research and analysis guide the development of low-carbon, energy transition–supportive products and services, while meeting evolving customer needs.
  • Workforce reskilling: Petrol offers training and skills development programmes that support the sustainable transition and build employees’ ability to adapt to new challenges.

With these actions, Petrol demonstrates its ability to adapt its strategy and business models to climate change and strengthens its preparedness for future challenges.

The Petrol Group has no so-called high risks or risks above the materiality threshold in the area of transition climate risks.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

E1.IRO-1 Description of the processes to identify and assess climate-related impacts, risks and opportunities

General procedures for identifying and assessing double materiality—including significant climate-related impacts, risks, and opportunities—are outlined in ESRS 2 IRO-1. A more detailed overview of the assessment of physical and transition risks in the short-, medium-, and long-term—along with climate scenarios and resilience analysis—is provided in E1.SBM-3.

In our risk and resilience assessments, we verified whether our assets and business operations could be exposed to climate-related hazards. Infrastructure and business activities across the entire value chain and all operating geographies are exposed to climate-related risks, but the level of exposure is not high and remains below the materiality threshold. These risks are successfully managed through the implementation of adaptation measures.

As disclosed in E1.SBM-3, the identification of climate-related hazards and the evaluation of exposure and sensitivity are based on high-emission climate scenarios. Alongside the Paris Agreement-aligned scenario, the following high-emission pathways were considered in the climate risk assessment and resilience analysis:

  • SSP1–2.6 (RCP 2.6): Temperature increase of 1.8 °C by 2100.
  • SSP2–4.5 (RCP 4.5): Temperature increase of 2.7 °C by 2100.
  • SSP3–7.0 (RCP 6.0): Temperature increase of 3.6 °C by 2100.
  • SSP5–8.5 (RCP 8.5): Temperature increase of 4.4 °C by 2100.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Scenario Analysis

Scenario analysis was used to identify and evaluate physical climate risks across short-, medium-, and long-term time horizons. Scenarios covered all geographies and markets in which we operate. While risks were assessed across all three timeframes, long-term physical risks remain highly uncertain and should be interpreted as indicative.

Assessment of Climate-related Risks and Opportunities

Climate-related risks and opportunities were assessed both for our own operations and across four value chains identified as material to the Group (see ESRS 2 SBM-1). Risks and opportunities in own operations were evaluated by internal experts with high-level expertise and access to relevant external databases. For the value chain assessment, secondary data sources—including industry studies, public disclosures from large corporates, and academic publications—were used, as the Group currently does not have its own proprietary databases in this area.

Transition Events

We identified and assessed transition events in a similar manner to physical risks, across short-, medium-, and long-term timeframes, using multiple climate scenarios. Petrol recognises transition-related risks and opportunities stemming from the shift to a low-carbon economy, and their potential impact on its operations and value chain. The assessment verified whether assets and operations are vulnerable to such transition events—an integral part of the resilience analysis. The degree of exposure and sensitivity to identified transition events was also evaluated.

Incompatible Business Segments

Among the segments of our business that are incompatible with climate targets or require significant adaptation efforts, the following stand out:

  • Distribution and sale of fossil fuels (significant exposure to transition risks: rising abatement costs, restrictions on the use of fossil fuels in transport, regulatory pressures);
  • Dependence on fossil fuels in the provision of energy services (need for greater integration of renewable energy sources and low-carbon technologies).

Climate-related Accounting Assumptions

In formulating climate-related accounting assumptions aligned with applied climate scenarios, the Company considers various factors that may affect its financial and operational stability in the context of climate change and the low-carbon transition. When assessing long-term business model sustainability, Petrol factors in key macroeconomic and sectoral trends aligned with EU climate objectives, regulatory frameworks, and market dynamics.

Future Cash Flow Estimates

Future cash flow estimates take into account expected changes in fuel and petroleum product demand, emission allowance costs, and the long-term shift of the energy portfolio toward low-carbon technologies.

Regulatory Environment Changes

Changes in the regulatory environment—such as the Energy Taxation Directive and the Energy Efficiency Directive—are considered in long-term asset value assessments, particularly in the fossil fuel distribution segment.

Accounting Judgments and Estimates

Petrol recognises transition-related risks and opportunities stemming from the shift to a low-carbon economy. The company adapts its accounting judgments (e.g., asset impairment needs) and estimates (e.g., expected credit loss on receivables) accordingly. Climate scenarios influence criteria for the recognition and measurement of assets and liabilities, including adjustments to asset lifespans and obligations related to environmental damage. Changes in accounting policy include possible recognition of emissions and pollutants, such as accounting for the emission allowance mechanism and creating provisions for renewable energy.

shortfalls in transport. Provisions are formed based on current and anticipated costs associated with legal compliance and environmental risk management. Financial statements also reflect an increase in asset insurance costs (e.g. fire and third-party liability insurance), which has an impact on decreasing profitability. At the same time, we strive to shape retail prices that take into account all newly incurred costs.

Decommissioning costs—such as those related to the Glunča, Ljubač, and Dazlina wind farms—are not currently recognised in the financial statements. Future orientations will include further deepening climate risk analyses and linking them to key financial indicators, in line with the development of the regulatory and market environment.

E1-2 Policies related to climate change mitigation and adaptation

The Petrol Group recognises the impact of climate change on its operations and is adapting its activities to market and regulatory developments linked to the transition to a low-carbon economy. Through its Climate Policy, approved by the Management Board, the Group supports the Paris Agreement and the EU’s decarbonisation commitments for 2050, signalling its active commitment to climate change prevention and mitigation. At the same time, it remains committed to ensuring a reliable and affordable energy supply to support societal well-being.

Petrol’s strategic objective is to reduce greenhouse gas emissions in the most economically and environmentally efficient manner, while minimising costs for the economy and the population.

The Petrol Group is committed to:

  • take a more prominent role in addressing climate change and establish partnerships with other stakeholders.
  • foster a culture of awareness among all stakeholders about the magnitude of the challenge and the benefits of an effective response, considering the impacts of climate change on the Group’s operations.
  • actively and decisively contribute to a more carbon-sustainable future by continuously reducing the impact of all its activities on the environment. The Group will also systematically analyse and identify specific actions to combat climate change that support the identification and uptake of decarbonisation and green energy transformation opportunities. In doing so, it will enhance its adaptive capacity and resilience and reduce vulnerability to climate change, in line with the goals of the Paris Agreement and the UN Sustainable Development targets (in particular SDGs 7 and 13) by 2030.

The Group implements its core principles of climate conduct through the following priority directions:

  • Strategy and investment policy are aligned with decarbonisation targets. Management ensures access to relevant information and resources to meet internal climate goals.
  • The strategic pillars of decarbonisation include: renewable electricity generation, energy efficiency and carbon savings, greening the energy mix, sustainable mobility, and the advancement of smart business models.
  • The Climate Action Plan outlines our commitment to achieving CO₂ neutrality by 2050, with intermediate targets across all three scopes of the carbon footprint (the plan is scheduled for adoption in 2027). The Group regularly reviews and monitors its greenhouse gas emissions inventory, including third-party verification. Mechanisms are being put in place to accelerate the effective implementation of the Climate Policy across the Group.
  • We advocate for a fair and sustainable transition to a more carbon-resilient society—one that is grounded in energy security, affordability, and economic viability. Our new models enable customers and society at large to adapt to changing patterns of energy use and

demand resulting from climate change.

  • Physical climate risks (both chronic and acute) are identified and analysed in a timely manner, with the goal of safeguarding critical infrastructure and enhancing the resilience of business models.

UN -United Nations

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Public

  • We promote continuous two-way communication on climate action with all stakeholders, with particular emphasis on internal audiences. A range of communication tools is employed for this purpose.
  • We promote continuous two-way communication on climate action with all stakeholders, with particular emphasis on internal audiences. A range of communication tools is employed for this purpose.

E1-3 Actions and resources in relation to climate change policies

Petrol recognises the need to gradually reduce the carbon intensity of its operations and manage transition risks in the energy sector. It uses multiple levers to mitigate risks and seize opportunities related to climate change.

Key decarbonisation actions include:

  • Development and adjustment of the renewable energy portfolio: continued investment in electricity generation from solar and wind sources, in line with regulatory and business frameworks. The share of energy from RES in the total energy supply is being increased, allowing us to offer customers energy from renewable sources, certified by Guarantees of Origin.
  • Enhancing energy efficiency: implementing optimisation measures in our own processes and promoting energy-efficient solutions for end-users.
  • Sustainable mobility: gradual expansion of electric vehicle charging infrastructure and analysis of potential opportunities to expand the use of alternative fuels such as biofuels and CNG, thereby actively reducing transport-related emissions. These activities are contingent on appropriate market and regulatory conditions. In line with e-mobility trends, we also plan to establish our own charging hubs or parks at key strategic locations.
  • Reducing the carbon intensity of operations: improvements in emissions management, supply chain adjustments, and the use of nature-based solutions where feasible. In 2024, during the renovation of the Barje Sever and Jug service stations in Slovenia, two new CNG filling stations were installed and a next-generation biofuel (Q Max HVO) —which enables up to 90% lower CO₂ emissions compared to conventional diesel—was introduced.
  • Adaptation of the investment and business model portfolio in line with EU Taxonomy and compliance with RED III, Fit for 55, and ESRS regulatory requirements.

In the reporting year, we implemented measures that contribute to the progressive reduction of greenhouse gas (GHG) emissions—primarily by optimising energy use and improving energy efficiency. In Slovenia and Croatia, the addition of fuel additives was increased to enhance fuel quality and thereby reduce emissions.

In Petrol d.d. Ljubljana (excluding the Energy and Solutions organisational unit), a 20.4% reduction in Scope 1 and 2 emissions was achieved in 2024 compared to the 2021 baseline.

Footnotes:

  • E1.MDR-A 28, 29 a-c, AR 21
  • RES – Renewable Energy Sources
  • RED III – The Renewable Energy Directive (EU) 2023/2413 (Slovenian: Direktiva (EU) 2023/2413 o spodbujanju uporabe energije iz obnovljivih virov)
  • Fit for 55 – an EU legislative package aimed at reducing net greenhouse gas emissions by at least 55% by 2030 and achieving climate neutrality by 2050.

We aim to reduce Scope 1 and 2 emissions by 40% by the end of 2025. Additional measures are planned to further reduce the carbon intensity of operations by 2030.

To achieve the set targets, the key activities up to 2027 will primarily focus on infrastructure development and securing subsidies, digitalisation, enhancing user experience, and optimising processes and management.

These actions involve substantial investments in less energy-intensive solutions, including the installation of battery energy storage systems that ensure a stable electricity supply. Funds are directed towards optimising energy use, increasing the share of renewable energy, and gradually adjusting the energy offering to low-carbon sources. Projects that support decarbonisation are incorporated into both capital expenditure (CapEx) and operating expenditures (OpEx).

To track the effectiveness of our policies and actions, we apply:

  • monitoring the amount of electricity generated from renewable sources (MWh) and the share of renewable energy in the total energy supply.
  • qualitative monitoring: regular assessment of project progress, including new infrastructure development and achievement of investment targets in line with business and climate strategies.

These monitoring approaches ensure transparency, precision, and alignment with our sustainability goals, while actively supporting the energy transition and the achievement of climate objectives.

Among the promising options for transitioning to low-carbon energy solutions is the exploration of renewable hydrogen, which could in the future be produced in-house via electrolysis. The Group will continue adapting its cost structure to strengthen alignment with sustainability criteria and increase resilience to transition risks.

Petrol is progressively implementing measures to reduce the carbon intensity of its operations through targeted investments and operational adjustments, in line with legislative and market developments.

Like other energy companies in the EU, the Petrol Group aligns with the European Green Deal and channels investments into green transition projects in the fields of renewable energy, hydrogen, e-mobility, and advanced energy solutions for industrial and commercial clients. As a co-creator of the green transition in Slovenia and the broader region—and a contributor to the EU's energy and climate goals—securing non-repayable funding for investment and development projects is of strategic importance to the Petrol Group.

The success of securing funding depends on numerous external factors, including:

  • the co-financing rate,
  • the availability and relevance of calls for proposals at national and EU levels,
  • the competitiveness of applicants,
  • the conditions and limitations of tenders,
  • state aid restrictions and the specificities of large enterprises.

The Petrol Group has been successful in implementing EU-funded projects and drawing grants at both the EU and national levels. Notable initiatives include the expansion of charging infrastructure under the CEF programme and the development of sustainable solutions for optimising district heating systems—particularly relevant to the public sector.

The Group’s ability to carry out climate adaptation and mitigation actions—including

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

through green transition projects—will continue to depend on the availability of co-financing sources at the EU and national levels.

Explanatory information on the ratio between significant capital and operating expenditures required for the implementation of adopted or planned measures is provided in the chapter Disclosures in accordance with Article 8 of Regulation (EU) 2020/852 (the Taxonomy Regulation).

E1-4 Targets related to climate change mitigation and adaptation

At Petrol, the effectiveness of climate policies and actions is monitored against energy and environmental targets aligned with national legislation—such as the Act on the Efficient Use of Energy and the Act on the Promotion of the Use of Renewable Energy Sources—as well as EU legislative requirements and decarbonisation commitments by 2050. At the management level, the Management Board is committed to these targets. At the implementation level, expert staff ensure the ongoing monitoring and improvement of energy efficiency and promote the efficient use of energy. Key stakeholders are consulted across levels when setting strategic and operational targets. The consultation methods and processes are further detailed in ESRS 2. In setting environmental targets for decarbonisation, we follow the strategic direction of the Petrol Group, which is aligned with the Paris Agreement. This direction is adapted in the short and medium term to reflect key requirements of sector-specific legislation, market conditions, and technological developments. Our renewable energy initiatives are progressively increasing the share of renewables across specific regions and timeframes.

The Petrol Group has been successful in implementing EU-funded projects and drawing grants at both the EU and national levels. In the energy sector, the Petrol Group continues to scale sustainable solutions in support of decarbonisation, consistent with its long-term strategic and business objectives.

We invest in electricity generation from renewable sources (RES), the development of charging infrastructure in transport, energy retrofits, and environmental improvements. Our approach emphasises gradual scaling and optimisation of existing solutions. The 2025 targets include:

  1. Development of renewable energy generation and sustainable energy solutions
  2. Installed capacity of electricity generation from RES and battery storage: Continued expansion aimed at increasing capacity by 26.4 MW across selected Group companies (Petrol d.d. Ljubljana, Petrol d.o.o. (Zagreb), Geoplin d.o.o. Ljubljana, E 3, d.o.o).
  3. Establishing energy communities: Development and management of at least three independent energy communities that will enable decentralised generation and enhance energy self-sufficiency.
  4. Increasing energy efficiency and optimising energy consumption
  5. Energy rehabilitation and self-sufficiency for households: A planned 9% increase in projects compared to the 2024 base year, reflecting rising demand for solutions that reduce energy consumption.

3) Development of charging infrastructure and e-mobility

  • Expansion of the charging network: Planned construction of 65 new proprietary EV charging stations in selected Petrol Group companies, in Slovenia (Petrol d.d., Ljubljana) and in Croatia (Petrol d.o.o., Zagreb).

4) Alternative fuels

  • Development of LPG infrastructure: Targeting the construction of three new LPG filling stations in 2025 across the selected limited consolidation companies.
  • Expansion of the AdBlue® infrastructure: Continued expansion of the AdBlue® dispensing infrastructure, which helps reduce nitrogen oxide emissions from diesel engines. In 2025, 34 new dispensing locations are planned within Petrol d.d., Ljubljana, and Petrol d.o.o. (Zagreb), with the expansion including both new and existing service stations, where filling via generators will be enabled.

In all areas, we continue to optimise processes and reinforce long-term sustainability, while remaining focused on the stability of energy supply, efficient operations, and the development of sustainable solutions.

Carbon footprint

In line with the Petrol Group’s 2021–2025 strategy, the carbon footprint has been calculated since 2021 for Scopes 1 and 2. The calculation follows a phased approach aligned with the rollout of energy data monitoring.

In the first phase (2021), the market-based method was applied, covering Petrol d.d.’s activities (including office buildings in Ljubljana, all warehouses, owned and leased service stations, and holiday facilities), excluding those related to the Energy and Solutions organisational unit.

In 2022, previously excluded activities—such as energy product generation and distribution, energy and environmental solutions, and heating systems—were added, along with the Ravne, Bled, and Štore locations. In 2023, we started including subsidiaries, beginning with Petrol d.o.o. (Zagreb).

In 2024, in addition to Scope 1 and 2 calculations using the market-based method, emissions monitoring using the location-based method was introduced. Scope 3 emissions related to fuels and other energy carriers (categories 3.1 – purchased goods and services, and 3.11 – use of sold products) were also monitored for Petrol d.d., Ljubljana, Petrol d.o.o. (Zagreb), E 3, d.o.o., and Geoplin d.o.o. Ljubljana (Petrol Group – limited consolidation). Emissions from entities outside limited consolidation amounted to 3.3%, which is below the materiality threshold.

In line with the GHG protocol, the following greenhouse gases were monitored: CO₂, CH₄, N₂O, HFCs, PFC, SF₆ and NF₃. Given our business activity, it is appropriate to include — alongside CO₂ — N₂O, CH₄, and fugitive emissions of fluorinated gases (HFCs and SF₆) in CO₂ equivalent calculations. These industrial greenhouse gases have long atmospheric lifetimes and very high global warming potentials.

In designing our GHG emissions reduction strategy, we reviewed publicly available databases on climate change databases and RCP (Representative Concentration Pathways) scenarios, which are based on projected gas concentration reductions and assessments of future climate change. During the analysis, we encountered challenges in precisely projecting and adjusting the strategy in response to environmental, social, technological, market, and political shifts.

We identified persistent gaps in access to sector-specific data processing methodologies—particularly in the context of oil and gas distribution and related climate projections.

Our key priority in 2021 was to set a common emissions reduction target and identify key decarbonisation levers for our primary activity. Further analysis and integration of climate scenarios — aligned with limiting global warming to 1.5°C — into our strategy and business model are the next logical steps in this process. The importance of analysing different.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Monitoring Progress Towards the -40 % Emissions Reduction Target (Scope 1 and 2) for Petrol d.d. Ljubljana, Excluding OE EiR

In the 2021 base year, we set a strategic target: to achieve a 40% reduction in total gross Scope 1 and 2 emissions (using the market-based method) by the end of 2025, relating to the own operations of Petrol d.d., Ljubljana, excluding the activities of the Energy and Solutions Business Unit (OE EiR).

As part of the emissions reduction strategy, key decarbonisation levers were identified. These include:

Our key priority in 2021 was to set a common emissions reduction target and identify key decarbonisation levers for our primary activity. These levers form the foundation of our approach to achieving the overarching goal of a 40% reduction in Scope 1 and 2 emissions.

Quantitative targets for individual levers have not yet been defined, as the analysis of their respective contributions to the overall target is still ongoing. The initial decarbonisation target was set without incorporating scenario analyses, and the sector-specific SBTI methodology for the distribution of oil and gas products could not be applied, as it is not yet available. Going forward, we plan to align our decarbonisation target with the SBTI methodology and relevant scenario analyses, in accordance with best practices and the forthcoming sector-specific guidance.

In the table titled "Monitoring the achievement of the -40% emissions target by 2025 in Scope 1 and 2 for Petrol d.d., Ljubljana, excluding Energy and Solutions", the 2024 results are presented in comparison to the 2021 baseline year. The carbon footprint of Scope 1 and 2 emissions was calculated using the market-based method and is shown as: the absolute value of total greenhouse gas (GHG) emissions reduction, the percentage reduction in total GHG emissions, and the emissions intensity value. Emissions intensity is expressed as the ratio between total Scope 1 and 2 emissions and the net revenue or gross profit of Petrol d.d., excluding the Energy and Solutions unit.

In 2024, we achieved a 20.4 per cent reduction in emissions compared to the baseline year of 2021. Our carbon footprint was reduced mainly due to reduced use of the following energy sources: electricity, heating oil, natural gas, and heat. In addition to reducing energy consumption, emission reductions were also achieved through a more favourable energy mix, which includes more electricity from renewable energy sources (RES) due to the installation of solar power plants at our facilities, and with guarantees of origin for electricity totalling 1,290 MWh.

To monitor the strategic target of reducing emissions throughout the progress monitoring period (2021–2025), the scope of emissions calculations has remained unchanged. This means that there have been no changes to the methodology or scope of activities covered, ensuring the reliability and consistent comparability of results across years relative to the 2021 baseline year.

We are aware of the importance of comprehensive monitoring of emissions from all activities and companies within the Petrol Group. Therefore, in accordance with the 2021–2025 strategy, emissions monitoring is additionally and gradually being expanded to Scope 3, including other subsidiaries, depending on the data aggregation possibilities. To ensure consistency with the baseline methodology, this part is reported separately in section E1-6.

107 SBTI – Science Based Targets initiative

The new baseline and target for the Petrol Group will be determined within the framework of the 2026–2030 strategy.

E1-5 Energy consumption and mix

The table shows the energy consumption related to our own activities: total energy consumption from fossil sources; total energy consumption from nuclear sources; share of nuclear sources in total energy consumption; total energy consumption from renewable sources; consumption of fuels from renewable sources; consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources; consumption of energy from renewable sources that are not fuels and are produced in-house; share of renewable sources in total energy consumption; consumption of fuels from coal and coal products; consumption of fuels from crude oil and petroleum products; consumption of fuels from natural gas; consumption of fuels from other fossil sources; consumption of purchased or acquired electricity, heat, steam or cooling from fossil sources; share of fossil sources in total energy consumption and energy intensity of activities in sectors with a high impact on the climate (total energy consumption in relation to the net revenue of the Petrol Group).

Total energy consumption refers entirely to activities in sectors with a high climate impact. The sectors with a high climate impact used to determine energy intensity are: generation and distribution of electricity, gas and heat; activities related to water supply, waste management and sewage treatment; and wholesale and retail trade, including the sale of our own motor fuels.

Data on energy and energy product consumption are collected based on energy and energy product invoices, meter readings, and internal consumption records. The energy mix was determined taking into account national data from international databases. For the calculation, the shares of energy sources from national averages for 2023 were used, as data for 2024 were not yet publicly available at the time of this report’s publication. In the calculations, the lower heating values (LHV) of energy commodities obtained from national sources were taken into account. The calculations have not been verified by an external validator.

Energy consumption and mix

2024 (Group) – limited consolidation

Consumption of coal fuels and coal products [in MWh] 0
Consumption of fuels from crude oil and petroleum products [in MWh] 16,550
Natural gas fuel consumption [in MWh] 148,448
Consumption of fuels from other fossil sources [in MWh] 0
Consumption of purchased or acquired electricity, heat, steam and cooling from fossil sources [in MWh] 38,729
Total energy consumption from fossil sources [in MWh] / calculated as the sum of rows 1 to 5 203,727
Share of fossil sources in total energy consumption [in %] 73.63 %
Consumption from nuclear sources [in MWh] 15,765
Share of consumption from nuclear sources in total energy consumption [in %] 5.70%
Consumption of renewable fuels, including biomass [in MWh] 39,377
Consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources [in MWh] 15,923
Consumption of self-generated energy from non-combustible renewable sources [in MWh] 1,879
Total renewable energy consumption [in MWh] 57,187
Share of renewable sources in total energy consumption [in %]

20.67%

Total energy consumption [in MWh]

276,679

Revenue of the Petrol Group (consolidated)* €

6,111,679,165

Energy intensity of activities in relation to revenue [in MWh/Mio€]

45.27

*Financial statement: Income statement of the Petrol Group and Petrol d.d., Ljubljana

Total generation of energy from non-renewable sources

The table below discloses energy generation from non-renewable sources data for 2024.

Source type Generated heat in MWh Generated electricity in MWh
Liquefied petroleum gas (LPG) 3,845.5 814.8
Natural gas 70,348.5 33,893.6
Waste heat 6,731.4 0.00
ELKO/KOEL = extra light heating oil 267.56 0.00
Total 81,192.96 34,708.4

Total energy generation from renewable sources

The table below shows generation from renewable sources for 2024.

Source type Generated heat in MWh Generated electricity in MWh
Wood biomass 37,680.9 130.4
Heat pump 1,942.6 0.00
Geothermal energy 4,513.1 0
Solar energy 0 4,531.6
Total 44,136.7 4,662.1

Net revenue from activities with a material climate impact

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report 223

Public

In the accounting section of the report (section "Segment reporting"), the Petrol Group's revenue is disclosed by four product groups: Fuels and Petroleum Products; Merchandise and Services; Energy and Solutions and Other.

The total energy consumption from activities and the energy intensity of activities in sectors with a high impact on the climate were calculated for a limited group of companies consisting of Petrol d.d. Ljubljana, Petrol d.o.o. (Zagreb), Geoplin d.o.o. Ljubljana and E 3, d.o.o. Each of these companies generates revenue by selling products from the groups listed above. The majority of the revenue of each Petrol product group in all of the aforementioned companies fall under NACE sections classified as sectors with a high environmental impact. The hospitality industry and other revenue are not considered part of sectors with a high impact on the climate, as it accounts for less than 1% of the total revenue of the above-mentioned group.

Entities

Revenue in EUR Petrol Group (consolidated)* 6,111,679,165
Petrol Group – limited consolidation 5,908,556,298

*Financial statement: Income statement of Petrol d.d., Ljubljana and the Petrol Group.

E1-6 Gross Scopes 1, 2, 3 and Total GHG Emissions

The “Gross Scopes 1, 2, 3 and Total GHG emissions” table presents calculations of emissions of Scopes 1, 2 and 3 (categories 3.1 and 3.11) for the Petrol Group – limited consolidation, which includes Petrol d.d., Ljubljana, Geoplin d.o.o., Ljubljana and E 3, d.o.o. in Slovenia, and Petrol d.o.o. in Croatia.

The total Scope 1, 2 and 3 GHG emissions, calculated using both the location-based and market-based methods, amount to approximately 12.9 million tonnes of CO2eq for the Petrol Group (limited consolidation). Scope 1 and 2 emissions according to the location-based method amount to 56,922 tCO2eq, while under the market-based method they total 65,775 tCO2eq.

The largest share of emissions under the market-based method—54%—is contributed by the parent company Petrol d.d., Ljubljana, which, in addition to its core business of selling fuels, petroleum products and other non-oil energy products, also engages in the production and distribution of energy, provides comprehensive energy solutions, and sells merchandise and services. It is followed by the Croatian subsidiary Petrol d.o.o. (Zagreb), which accounts for 29% of emissions and whose main activity is the sale of fuels, petroleum products, and merchandise and services. Two Slovenian companies contribute the remaining share: Geoplin d.o.o., Ljubljana with 15% of emissions (main activity: sale of natural gas) and E 3, d.o.o. with 2% (main activity: sale of electricity).

Gross Scope 3 GHG emissions — particularly from category 3.11 (use of sold products) — represent the largest share of the Petrol Group’s total emissions (limited consolidation), amounting to over 10.5 million t CO2eq. This is mainly due to the sale of fossil fuels, whose combustion by end-users generates significant emissions.

Scope 3 thus accounts for as much as 99.5% of total emissions, while Scope 2 contributes 0.2% and Scope 1 contributes 0.3%. This means that direct emissions from owned sources (Scope 1) and indirect emissions from energy consumption (Scope 2) are negligible compared to indirect emissions associated with the supply chain and the end use of sold fuels.

It is important to emphasise that Petrol’s sales are directly linked to customer requirements and needs, with the existing vehicle fleet playing a decisive role. Since most vehicles still rely on fossil fuels, demand for these energy sources remains high, leading to significant emissions from their use.

This is additionally impacted by geopolitical conditions and the slowed European energy transition. Instability in global energy markets, disruptions in supply chains, and the increased need for energy security have prolonged the use of fossil fuels in recent years, as countries and companies seek reliable energy sources. The transition to low-carbon sources in Europe is significantly slower than expected due to regulatory, financial and technical challenges — thereby maintaining elevated emissions from fossil fuel use.

Contractual instruments used (Certificate of Cancellation of Guarantees of Origin)

The Petrol Group purchases electricity generated from various sources. When concluding electricity purchase contracts, the generation structure is currently not defined. To ensure a higher share of electricity from renewable sources and consequently reduce the carbon footprint in Scope 2, we use a contractual instrument - the Certificate of Cancellation of Guarantees of Origin (Slovenian: POI – Potrdila o izvoru). Guarantees of Origin (POI) verify the source of the electricity generated, are purchased separately from the electricity itself.

For 2024, the Petrol Group (limited consolidation) purchased 7,993 MWh of POI. Given that Petrol d.d., Ljubljana, fed electricity into the grid from its own solar plants, and that the companies also use electric vehicles in their fleets, 1,299 MWh of POI (1.9%) was used to reduce the Petrol Group's carbon footprint (limited consolidation). The remaining portion was cancelled for electricity supplied to the market by companies for powering electric vehicles, and for the purpose of improving the structure of electricity generation or reducing the emission factor.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Contractual Instruments (POI) used in 2024 for Scope 2 emission reduction - market-based method

GHG emissions intensity

The Petrol Group is an energy group operating in a sector characterised by high price volatility. Price developments are influenced by several factors, among which we particularly highlight geopolitical developments (such as the sharp increase in the prices of natural gas, petroleum products, and consequently electricity due to the embargo on energy imports from Russia), the impact of weather conditions on electricity generation (solar, wind and hydropower), an increased demand for energy commodities from developing economies, regulatory interventions by countries and numerous other factors. In recent years, price volatility has been extremely high, resulting in significant fluctuations in the Petrol Group's revenue, even if the volume of operations has remained unchanged. This also directly impacts the greenhouse gas emission intensity indicator, which, given such fluctuations in revenue, does not accurately reflect the actual situation or the success in reducing emissions.

The following table shows the intensity of greenhouse gas emissions based on both the location-based and market-based methods for individual scopes and total emissions, in relation to the net revenue of the entire Petrol Group (consolidated).

GHG emission intensity for Petrol Group - limited consolidation

Methodological approach

The carbon footprint of the Petrol Group companies (limited consolidation) was calculated using the GHG Protocol Standard for Corporate Greenhouse Gas Accounting and Reporting ("revised edition"), which requires the monitoring emissions of seven greenhouse gases: CO₂, CH₄, N₂O, HFCs, PFC, SF₆ and NF₃. Given the activities carried out by the Petrol Group, in addition to CO₂, emissions of N₂O, CH₄, HFCs and SF₆ in CO₂ equivalent were also taken into account.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Public

Three key dimensions have been included in the GHG emissions monitoring record limits: organizational, both in terms of operational and financial control; scope boundaries, including Scope 1, 2 and 3 emissions (categories 3.1 and 3.11); and time synchronisation with the annual business report.

In line with the ability to provide consolidated data for carbon footprint calculation, in 2024, we began monitoring GHG emissions in Scopes 1, 2 and 3 for the Petrol Group – limited consolidation (Petrol d.d., Ljubljana, Petrol d.o.o. (Zagreb), E 3, d.o.o. and Geoplin d.o.o.).

GHG emission calculations for Scopes 1, 2 and 3 were performed in MS Excel by multiplying quantities and corresponding emission factors. The latest published emission factors from credible organisations such as local agencies, institutes, the GHG Protocol and other.

Emission factors used for GHG emission calculation

Scope 1

Scope 1 covers direct emissions resulting from the Company's activities or from the consumption of fuels and other energy commodities required for its operation. It includes emissions from the use of natural gas, heating oil, liquefied petroleum gas (LPG) and biomass, mainly for space heating and the operation of appliances, fuels for Company-owned vehicles (petrol, diesel, LPG), and emissions of fluorinated gases (HFCs and SF₆) from refrigeration or air conditioning systems. Energy commodities converted into other types of energy for sale or supply to end customers were also included in direct emissions.

Scope 2

In Scope 2, indirect emissions related to electricity and heat consumption were also considered. Electricity is used year-round for operating pumps, fans, compressors, computer equipment, car washes, security equipment, catering and commercial equipment, hot water preparation, lighting and in the winter for heating, and for cooling during summer months. To calculate emissions using the location method, national average specific emissions were used. In the calculation using the market method, data from the “European Residual Mix” were used. To reduce the carbon footprint of the organisation, the contractual instrument was additionally used, whereby guarantees of origin of electricity were purchased and cancelled.

Scope 3

• Category 3.1: Procured goods and services

Emissions resulting from the generation of procured fuels and other energy commodities (for own use and resale), as well as emissions related to their transport were included. To estimate these emissions, DEFRA Well-to-Tank (WTT) emission factors, which include indirect emissions from the production and transport of fuels to our depots, were used. For electricity and heat consumption, emission factors from the national databases of Slovenia and Croatia were used.

• Category 3.11: Use of sold products

Emissions resulting from the combustion of fuels and other energy commodities sold to end users in retail and wholesale were included. The data on the volumes of fuels sold and other energy commodities along with the corresponding combustion emission factors from the DEFRA database, and for electricity and heat from the national databases of Slovenia and Croatia were used.

The other categories were not considered at this stage either due to their smaller contribution to total emissions or due to limited data availability. The remaining categories of Scope 3 (3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.12, 3.13, 3.14, 3.15) are considered immaterial for Petrol’s operations due to their significantly smaller contribution.

Emissions outside Scopes 1, 2, 3

For woody biomass, CH₄ and N₂O equivalent emissions were included in the calculation of Scopes 1, 2 and 3, while biogenic CO₂ emissions were not taken into account in accordance with the GHG protocol in these Scopes. Separately presented emissions outside Scopes 1, 2 and 3 include biogenic CO₂ emissions. Direct and indirect emissions from biomass combustion were included for Scopes 1 and 3, respectively, while, for Scope 2, indirect biogenic CO₂ emissions from purchased electricity were included. National emission factors for heat do not have separate data listed on the share of biomass, therefore no reporting is made on biogenic heat emissions.

111 DEFRA WTT – Department for Environment, Food & Rural Affairs, Well-to-Tank

112

The volumes are consolidated or subject to limited consolidation (inter-company sales between the four aforementioned companies are excluded; sales to other companies within the Petrol Group are included). Volumes for end consumers are considered (trading in electricity and natural gas is excluded, as are extraordinary fuel sales and sales to resellers).

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

GHG intensity

The GHG emission intensity was calculated as the ratio between total Scope 1, 2 and 3 (or Scope 1 and 2) according to the location or market method and the net revenue of the entire Petrol Group.

E2 POLLUTION

ESRS 2 IRO-1– Description of the processes to identify and assess material pollution-related impacts, risks and opportunities

Based on the double materiality assessment conducted for pollution, water pollution, soil pollution, and substances of concern (SOC) have been identified as material actual or potential impacts, either negative or positive.

The process applied to identify material impacts, risks and opportunities from a pollution perspective is presented in ESRS 2 IRO-1. When specifically assessing pollution, the following steps are additionally considered:

  1. identifying the locations where own operations are carried out by classifying these locations into groups with similar technical characteristics and types of emissions.
  2. defining the actual and potential impacts related to emissions from emission sources.
  3. comparing actual emission levels with prescribed limit values or thresholds defined in applicable legislation.
  4. assessment of material risks and opportunities.

Actual impacts on water pollution occur at all petroleum product storage facilities, at both IED facilities — Ravne and Štore, at service stations with their own treatment plants (or other facilities for treating or storing wastewater), and at municipal and industrial treatment plants under our management.

Actual and potential impacts on soil pollution arise at all liquid petroleum product storage facilities, at both IED facilities, at all service stations and in liquid fuel boiler houses.

Actual impacts of substances of concern occur at all locations where petroleum products are handled, i.e. at all petroleum product storage facilities, all service stations and in liquid fuel boiler houses.

The value chains in which the Petrol Group is present are presented in more detail (both upstream and downstream) in the ESRS 2 SBM-1 section. The following actual and potential impacts that arise directly in our activities or in that part of the value chain over which we have a material impact are presented:

  • In the oil and petroleum products value chain, impacts on water, soil, and substances of concern arise from the storage, distribution, and all types of petroleum product sales, including retail.
  • In the merchandise and services value chain, impacts on water arise at service stations with their own treatment plants.
  • In the natural gas and electricity value chains, there are no impacts on water, soil or substances of concern.

In other value chains — namely IED facilities within Energy and Environmental Systems — impacts on water and potential impacts on soil occur.

In the event that changes to an individual location owned or operated by the company require public consultation in accordance with the current Environmental Protection Act or related legislation, targeted consultations are conducted with affected communities or the interested public. The area of cooperation is described in more detail in section S3. To date, we have not conducted reviews of the locations and activities of suppliers or customers in our value chains from the perspective of material environmental impacts or risks.

E2-1 – Policies related to pollution

Policies for managing significant impacts, risks and opportunities related to pollution are part of the company's quality system policy, as set out in the Quality Management System Rules for Petrol d.d., Ljubljana, and the Quality and Environmental Management System Rules for Petrol d.o.o. (Zagreb). These rules define how material aspects of negative actual or potential environmental impacts — such as water pollution, soil pollution, and substances of concern — are managed through the use of best available technologies and practices in our industry.

Business and operational processes are optimised across all relevant areas, and legal, regulatory, and internal requirements relating to our products and services with actual or potential environmental impacts are met. In all markets where we operate, we act responsibly toward the environment and are committed to continuous improvement and pollution prevention — including the setting of measurable environmental targets. This approach is also being gradually extended to our upstream and downstream value chains. The management boards of both Petrol d.d., Ljubljana and Petrol d.o.o. (Zagreb) are responsible for implementing this policy.

At Petrol d.d., Ljubljana, we have adopted an Environmental Protection Protocol, which aims to regulate the field of environmental protection and to define a system of custodians responsible for direct and indirect environmental impacts resulting from company activities. Environmental aspects to be addressed and assessed have been identified at both Petrol d.d., Ljubljana, and Petrol d.o.o. (Zagreb), in line with the Environmental Management Procedures in each company.

With regard to substances of concern, we monitor legislative requirements and any amendments. On 1 December 2023, Regulation 2022/692 (the 18th ATP) came into force, amending Regulation 1272/2008 (CLP). The amended regulation changed the harmonised classification of certain substances, which also affected coolant (antifreeze) products in Petrol’s sales portfolio. As a result, all coolants containing the affected substance were withdrawn from sale to end customers and replaced with alternative products.

The majority of trade in substances of concern within the Petrol Group relates to petroleum products or liquid fuels, which account for 98% of the total mass of chemical. Since fuels serve an essential social use, their complete replacement or phase-out is not planned.

Incident prevention and handling

The policy for preventing and managing incidents and emergencies is part of the Petrol Group's Overarching Safety Policy and is embedded in the Major Accident Prevention Plan (Petrol's Commitment to Safety guideline). Safety challenges are also addressed through our compliance system and specific safety sub-policies, such as the Safety Management System in accordance with the SEVESO Directive, which applies to all SEVESO high-risk establishments managed by the Petrol Group.

For locations where incidents and emergencies could impact people or the environment, we have developed risk assessments, Safety Reports, or Environmental Risk Reduction Plans.

Based on these documents, Protection and Rescue Plans have been prepared to define procedures and measures to be followed in the event of incidents and emergencies.

117

CLP – Classification, Labelling and Packaging

118

SEVESO Directive

European legislation governing the prevention of major accidents involving hazardous substances and the mitigation of their consequences for people and the environment.

At Petrol d.d., Ljubljana, we have adopted an Environmental Protection Protocol.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

E2-2 – Actions and resources related to pollution

The reduction of negative impacts related to water and soil pollution is ensured through the implementation of legally mandated measures under applicable sector-specific legislation. These are the most effective measures for preventing and capturing identified emissions at the locations where our activities are carried out. The effectiveness of these measures is monitored through regular emissions measurements at pollution sources. All SEVESO establishments managed by the Petrol Group have either established their own professional industrial fire brigades, formed joint fire units with neighbouring facilities, or entered into cooperation agreements with the nearest professional fire brigades. Employee competence in these facilities is regularly verified through annual protection and rescue drills and periodic training sessions.

The actions implemented for individual activities and locations are presented below.

Water pollution actions

Municipal wastewater from our own operations

We pay particular attention to the treatment of wastewater generated through activities at service stations (gas stations) and Petrol warehouses. Many service stations are located outside urban areas where connection to the public sewage network is not possible. At these locations, wastewater is therefore treated using small municipal wastewater treatment plants (Slovenian: Male komunalne čistilne naprave - MKČN). New MKČN units or replacements of existing ones use the latest biological treatment technologies, such as treatment using fixed biomass on floating carriers or plant-based treatment systems. The professional competence of operational teams — along with the transfer of good practices and collaboration among teams — plays an important role.

The number of MKČN varies over time, as we strive to connect as many locations as possible to the public sewerage network where feasible. We regularly monitor the performance of each small wastewater treatment plant, conduct internal control analyses, and ensure effective management.

As of the end of 2024, we operated 53 MKČN and 12 pumping stations at petroleum product service stations and warehouse sites in Slovenia. Prescribed operational monitoring is carried out at all locations. In 2024, all small municipal wastewater treatment plants complied with prescribed limit values for controlled discharge parameters.

In 2022, we began the installation and maintenance activities of MKČN units in Croatia as part of the acquired Crodux service stations. Between 2022 and 2024, five new MKČN units — with capacities ranging from 400 PE to 700 PE — were installed at motorway service stations, which also include larger catering facilities.

Industrial wastewater from our own operations


Emissions to water are generated at all petroleum product storage facilities and service stations due to the rainwater runoff from surfaces potentially contaminated with petroleum products (e.g. vehicular traffic areas, decanting zones, and catchment basins). All such wastewater is discharged through oil separators that comply with the SIST EN 858-2 standard or local legislation in each respective country, into various water receivers depending on the available options at each location.

Most facilities are connected to the public sewage network, while in some cases, treated water is discharged into the natural environment (e.g., rivers, streams, infiltration basins). In both cases, we strictly comply with the permitted substance emission limits as defined by applicable legislation. Pollutants removed in the oil separators (mineral oils) are classified as waste and handed over to authorised waste collectors.

Water emissions from the IED facilities — Toplarna Ravne and IED Štore — are monitored in line with legal requirements and the respective environmental permits, covering all designated measurement points.

Municipal and industrial wastewater treatment activity

Petrol manages four municipal wastewater treatment concessions. These are municipal wastewater treatment plants (Slovenian: komunalne čistilne naprave - KČN) located in:

Murska Sobota (capacity: 42,000 PE)
Mežica (4,000 PE)
Sežana (6,000 PE)
Ig (5,000 PE)

The KČN facilities treat wastewater through multiple stages to a level suitable for discharge into watercourses or the natural environment. A portion of the treated water is reused in the technological treatment process. After use, this process water is collected via an internal sewage system and treated again at the treatment plant.

As a contractor, Petrol also provides wastewater treatment and regular maintenance services at the industrial wastewater treatment plant of the Vevčepaper mill. This process generates approximately 5,000 to 6,000 tonnes of paper sludge annually, which is repurposed. The Port of Koper has developed a solution for using paper sludge to cover coal landfills, effectively preventing the spread of coal dust.

Soil pollution actions

Emissions to soil do not occur during normal operation of emission sources managed by the Petrol Group. To capture any potential spills and leaks, areas where spills or leaks could occur are equipped with spill containment systems. These systems are managed using appropriate actions such as:

  • above-ground tanks are placed in catchment basins,
  • underground tanks have a double wall,
  • transfer areas (decanting units, pumping stations, charging stations) are in the form of catchment basins connected to the containment system,
  • the floors in chemical packaging areas are designed as catchment basins, without a direct outlet to the sewer.

The effectiveness of containment systems is regularly checked by monitoring the interstitial space of double-walled tanks and inspecting the condition of catchment basin materials. If necessary, the catchment basins can also be upgraded.

The actions are technically appropriate to achieve the targets set out in Chapter E2-3 ("Pollution targets") and are consistent with the best available techniques and good engineering practices. A key environmental and safety action is the appropriate and effective maintenance and renovation of existing infrastructure (tanks, pipelines, containment systems and other technological equipment of warehouses and service stations), which must ensure the containment of hazardous substances — the vast majority of which are substances of concern.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Actions on substances of concern

Since the substances of concern in the Petrol Group are mostly liquid fuels, the actions for their safe containment are the same as those for preventing emissions to soil. Fuels also pose a risk to people (employees and customers). Therefore, numerous activities — including some that are not yet legally required — are undertaken.

To reduce health risks for employees at service stations, we have introduced self-service stations, minimising their exposure to the negative effects of fuel vapours. The exception is LPG121 service stations in Croatia, where fuel dispensing is still performed by employees. With appropriate safety upgrades to LPG dispensers (e.g. the “dead man’s switch”), this practice will gradually be phased out.

At workplaces with the highest exposure to fuel vapours, we conduct measurements of hazardous substance exposure. Special attention is given to employees who handle 100LL aviation fuel, which contains the SVHC122 substance tetraethyl lead. These employees are also subject to biological monitoring for lead levels in their blood.

In Slovenia, even before the revised CLP Regulation came into force, we had already labelled fuel dispensers in accordance with the regulation, thereby appropriately informing consumers of the health risks posed by fuels.

The actions outlined above will continue to be implemented to ensure compliance with legally defined environmental impact limits. Any changes or upgrades will be defined should the business model change in a way that affects material environmental impacts.

E2-3 – Targets related to pollution

The effectiveness of policies and actions is monitored using targets such as:

  • Water pollution targets: ensuring emissions remain within the limit values or volumes prescribed by legislation for specific types of emission sources, or as defined in environmental permits for individual facilities and plants (e.g., environmental permits for the IED Štore and IED Toplarna Ravne facilities).
  • Soil (and groundwater) pollution target: to avoid soil contamination during regular operations. In the event of incidents such as spills or leaks of hazardous chemicals onto unprotected ground, contamination is mitigated by removing polluted soil and, where necessary, conducting groundwater monitoring in the affected area. An additional target in such cases is the remediation and reuse of the contaminated soil.
  • Targets for substances of concern: aligned with the targets for water and particularly soil pollution, as the vast majority of chemicals used or placed on the market by the Petrol Group are also classified as substances of concern.

We monitor the achievement of targets through emissions monitoring carried out in compliance with legal regulations. After each round of measurement, the reports are carefully reviewed and their compliance verified by comparing the results against prescribed thresholds. In the event of non-compliance (exceeding limit values), the root causes are analysed and corrective actions are implemented. The effectiveness of these actions is verified through follow-up measurements. The targets are partially mandated by law but are mostly voluntary.

121 LPG - Liquefied Petroleum Gas

122 SVHC - Substance of Very High Concern

123 E2.MDR-T, paragraph 22, E2-3, paragraphs 23 b-d, 25

Environmental water and soil pollution targets for Petrol d.d., Ljubljana

Indicative target Implementation target (task) Pollution area
Ensure adequate training and awareness of employees Ensure that warehouse employees are adequately trained to respond to potential fires and environmental disasters Water
Informing employees about environmental protection and sustainability procedures through internal communication channels Water
Soil/surface (land)
Pollution prevention Elimination of septic tanks and MKČNs and connection to the sewer system at all locations Water
Improving the tank management system (uniform records of inspections, findings, and repairs; defining responsibilities and tasks for tanks owned by Petrol and managed by third parties, identifying tank leaks) Water
Soil/surface (land)
Implementation of legal obligations Carrying out legally required monitoring and submitting all legally required reports Water
Soil/surface (land)

By ensuring continuous training of employees at warehouses — which represent the highest potential source of environmental pollution (surface water, soil, and groundwater) — and by raising employee awareness of environmental protection and sustainability procedures, especially for adverse events (e.g. spills and leaks), we significantly reduce the likelihood of such events and mitigate their negative impacts through preventive measures. Legally required monitoring of wastewater from industrial sewers or treatment plants ensures emissions remain within permitted thresholds by keeping monitored parameters within acceptable limits.

By eliminating septic tanks and connecting sites to the sewer system (or replacing septic tanks with small municipal wastewater treatment plants – MKČNs), we reduce the risks of soil and groundwater contamination in the event of septic tank failure. Regular monitoring of liquid fuel tanks minimises the risks associated with tank ageing, such as leaks. The digitalisation of tank monitoring will provide a comprehensive overview of all tanks managed within the Petrol Group, whether owned or leased.

The main objective of the Petrol Group in trading substances of concern is to identify risks to both the environment and people and to adopt and implement measures that reduce these risks.

When producing private label products, the goal is to avoid the use of SVHC substances. We monitor the achievement of targets through emissions monitoring carried out in compliance with legal regulations.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report 236

Public E2-4 – Pollution of water and soil

Water and soil pollution from individual emission sources managed by the Petrol Group does not exceed the limit quantities of pollutants set out in Regulation (EC) No. 166/2006 (E-PRTR).

In the area of water and soil pollution, there were no significant changes over time in relation to ongoing pollution at the locations. There were also no changes in pollution at locations where septic tanks were eliminated and a connection to public sewers was made. Even during the operation of the septic tank, there were no releases into the environment (soil or water).

Pollution measurement methodologies

Water and soil pollution are measured using different methodologies. During regular operation, only emissions into water occur. These are measured in compliance with regulations, environmental permits, or direct legislation. Regulations determine how often and in what manner regular measurements are carried out. Most emissions to water are monitored through regular measurements. The performers of all emission measurements and calculations are authorised performers of these monitoring activities, who have obtained appropriate licences for their work from the competent state authorities.

Soil contamination is determined only in the event of extraordinary events (spills or leaks). In such cases, an authorised laboratory samples the contaminated soil, and based on the test results, provides an expert assessment of the options for further handling of such soil (e.g. backfilling, remediation, disposal as hazardous waste).

Data collection procedures

The collection of pollution accounting and reporting data is regulated within the framework of the environmental charges system, which consists of eight regulations adopted under the Environmental Protection Act. At Petrol d.d., Ljubljana, records for lubricating oils and fluids, waste packaging, waste electrical and electronic equipment, and used tires are kept automatically in the business information system, so that data on quantities is automatically generated for items subject to environmental charges. For wastewater discharge, the environmental tax is calculated by the authorised wastewater monitoring provider as part of the annual monitoring report, under an existing cooperation agreement.

E2-5 – Substances of concern

All fuels — which account for the majority of substances of concern and are delivered to the Petrol Group’s warehouses — are final products of refining processes (without any special additives or biocomponents, which may be added to the final products). During the preparation of fuels for dispatch from storage, selected additives and quantities of biocomponents are added in accordance with predefined formulations.

Another process chain involving substances of concern is the preparation of private label (LBZ) coolants (antifreezes), where raw materials are blended with water to produce the final product. The remaining substances of concern include solvents, which are transferred from tanker trucks into smaller packaging, and other chemicals that are resold in the manufacturer’s original packaging.

Total volume of substances of concern generated, used or procured in the Petrol Group in 2024

Total volume of substances of concern generated, used or purchased, by main hazard

class, in the Petrol Group in 2024*

*When listing hazard classes, applicable to the chemicals handled within the Petrol Group are included. English abbreviations are used, as they are also used in the Slovenian translation of the CLP Regulation. Individual substances of concern may fall into multiple hazard classes simultaneously.

The main emissions generated during processes involving substances of concern in the Petrol Group are gasoline emissions from storage tanks and vapour recovery units.

  1. VRU – Vapour Recovery Units

Purpose

Total volume [in kg]
Preparation (generation) 3,448,171,886
Consumption 3,448,196,509
Procurement 3,541,843,908
Total 3,541,843,908

Property

Purpose Carc.1.2 (in kg) Muta.1.2 (in kg) Repr.1.2 (in kg) PBT/vPvB s (in kg) Skin Sens.1 (in kg) Aquatic Chronic 1-4 (in kg) STOT RE 1.2 (in kg) STOT SE 1.2 (in kg)
Preparation (generation) 3,448,028,720 566,486,383 566,629,549 0 0 3,448,028,720 2,658,956,690 0
Consumption

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Public

3,448,073,79 1 566,398,14 6 566,520,86 4 0 133,30
3,448,073,79 1 2,881,665,05 5 0 Procurement 3,520,533,99 3
638,852,34 8 566,556,42 5 0 143,47 8 3,469,164,62
1 2,882,046,73 5 70,97 6 Total 3,520,533,99 3
638,852,34 8 566,629,54 9 0 143,47 8 3,469,164,62
1 2,882,046,73 5 70,97 6

Total volume of substances of concern leaving facilities as emissions, products or as part of products or services in the Petrol Group in 2024

Total volume of substances of concern leaving facilities as emissions, by main hazard class, in the Petrol Group in 2024

Total volume of substances of concern leaving facilities as a product, by main hazard class, in the Petrol Group in 2024

E3 WATER AND MARINE RESOURCES

ESRS 2 IRO-1– Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities

At the Petrol Group, reviews of the impacts of our activities on water and marine resources in accordance with international environmental standards and legislation are conducted. The process used for identifying material impacts, risks and opportunities from a water and marine resources perspective is presented in ESRS 2 IRO-1.

As part of the double materiality assessment, water consumption in the car washes’ own operations as an actual material negative impact, as well as a positive impact in managing the water cycle for the market (treated and reused industrial water) have been identified. No water and marine resources-related material risks and opportunities that would be above the materiality threshold for reporting have been identified.

Purpose

Purpose Total volume [in kg]
Emission 45,071
Product, part of a product or service 3,541,650,728

Property

Purpose Carc.1.2 (in kg) Muta.1.2 (in kg) Repr.1.2 (in kg) PBT/vPvBs (in kg) Skin Sens.1 (in kg) Aquatic Chronic 1-4 (in kg) STOT RE 1.2 (in kg) STOT SE 1.2 (in kg)
Emission 45,071 45,071 45,071 0 0 45,071 0 0
Property

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

(in kg) Muta.1.2 (in kg) Repr.1.2 (in kg) PBT/vPvB s (in kg) Skin Sens. 1 (in kg) Aquatic Chronic 1-4 (in kg) STOT RE 1.2 (in kg) STOT SE 1.2 (in kg)
Product 3,297,760,109 638,940,585 566,496,553 0 10,170 3,469,119,550 2,659,169,813 70,976

A comprehensive approach is taken to identifying and managing the water and marine resources-related impacts, risks and opportunities. Through proactive monitoring, sustainable practices, and continuous process improvement, environmental impacts are reduced and responsible management of water resources contributed to. Consultations are conducted with key stakeholders to ensure sustainable management of water resources. We work with regulators, local communities, scientific institutions and non-governmental organizations to pro-actively identify potential risks, improve existing practices and contribute to the protection of aquatic ecosystems. We actively cooperate with environmental agencies and competent authorities in meeting legislative requirements and obtaining permits. We organise meetings for local communities and keep them informed about the impacts of our activities, while also listening to their initiatives and concerns. We collaborate with external trained experts in specialized areas of ensuring quality water resources, ecosystem impacts, and developing sustainable solutions. We support projects by non-governmental organizations for the protection of water resources, pollution prevention, and sustainable management of coastal areas.

Collaboration with key stakeholders is held in several ways, such as meetings with internal and external stakeholders to exchange opinions and suggestions on how to improve water management and monitor impacts. Through regular reporting, access to key indicators and analysis results is given to the public and stakeholders. Based on consultations, actions to improve the management of water resources to the greatest possible access are adapted.

E3-1 – Policies related to water and marine resources

The principles of sustainable water resource management, which also includes water consumption, are included in our Energy Policy, which, in addition to energy, defines the responsible and economical use of water. With this policy, the Petrol Group strives to save water in all our facilities, devices, and equipment. In the future, greater emphasis will be placed.

129 E3.MDR-P, paragraph 11, 12 a(i), b-c, 13, 14

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

on water management and conservation and the example of best, cost-effective practices will be followed. Our objective is to reduce water costs relative to the generated turnover, thereby achieving a competitive edge in the industry. The energy policy obliges companies in the Petrol Group to control the management of water needed to provide services and which will create savings. Our efficiency will continuously be improved, water costs optimised, and environmental impacts (especially in the car wash business) reduced. Through market activities in the management of municipal and industrial wastewater treatment plants, we will have a positive impact on the state of the water cycle. Advanced technologies and practices are used, processes are optimised, and legal and internal regulations in water management are complied with. The policy applies to all our activities carried out for the market and that have an impact downstream in the value chain. However, it does not directly cover business partners up the value chain.

The Management Board is responsible for the adoption and implementation of the Energy Policy at the highest level, and the implementation of the policy is sensibly transferred to the operational levels, where its effective implementation in all relevant processes is ensured. No policies or practices related to sustainable oceans and seas have been developed, as at this stage of our sustainable value chain management it has not been recognised as material. As we expand our sustainable management up the value chain, this policy will also be developed as needed.

Areas at water risk

Our policy does not currently address specific aspects aimed at reducing water consumption in areas at water risk. No special policy has been adopted exclusively for areas at water risk, as in compliance with the general approach to water resources, numerous general measures are implemented that contribute to reducing water consumption also in potentially endangered areas or areas at water risk, which are described in section E3-2. Existing policies related to water resources will be complemented with a special emphasis on areas where water consumption is threatened or exposed to water risk.

E3-2 – Actions and resources related to water and marine resources

As part of sustainable water resource management, numerous actions are implemented to reduce drinking water consumption, which contribute to reducing the negative impact of water consumption for our own car wash operations and increasing the positive impact in the area of water cycle management for the market.

Various actions that contribute to reducing water consumption, including in areas at water risk, are implemented. These actions include optimising water consumption in processes, reusing water in car washes, controlling and monitoring consumption to reduce unnecessary losses and inefficient use, using advanced technological solutions, investing in water reuse and waterless technologies to optimize consumption, and working with local stakeholders to identify potentially vulnerable areas and adjust water use strategies. Actions are monitored and adopted according to local conditions, regularly analysing water consumption and responding to the specific challenges of individual areas.

Water consumption and quality indicators are monitored, internal and external reviews are conducted, and the development of good practices within the Group is participated in. For pre-packaged water under our own private label (Voda na poti), microbiological quality parameters are regularly monitored through our own analysis and sampling plan and contractual requirements for the supplier. Employees at all locations and at all levels of the Petrol Group are educated on water conservation, and good water management practices are shared within.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

E3-3 – Targets related to water and marine resources

Proper maintenance of technical devices and prevention of pollution are ensured. All employees are responsible for implementing water saving measures, reporting irrational water use to those responsible and striving to ensure minimal water use in the areas where we operate.

In 2024, investments of EUR 181,000 were made at service stations to save water and consequently water resources, and, in 2025, EUR 120,000 are planned to be invested in this area.

Actions and resources in areas at water risk

In areas at water risk, actions that are part of general sustainable business actions are implemented. At the same time, we are aware that targeted management of water consumption in areas at water risk is of key importance, so, in the future, we will:

  • Upgrade the existing water management policy and include specific actions to reduce water consumption in areas at water risk.
  • Conduct a risk and water resource availability analysis to identify locations where the available water supply is limited to the greatest extent.
  • Establish concrete targets to reduce water consumption in these areas and include them in the Company's strategic sustainability guidelines.
  • Implement additional water conservation and reuse technologies where possible.

Areas at water stress or water risk are identified based on the European Environment Agency (EEA) map, which shows the ecological status of surface waters and their vulnerability in Europe. The map is available on the EEA website and is based on an analysis of the ecological status of water bodies in Europe. From the perspective of the geographical reach of the Petrol Group companies, limited consolidation illustrates the territory of Croatia as an area at water risk.

The measures are focused on our own activities, which materially impact customers and end consumers in all markets where we operate, i.e. downstream in the value chain. No actions are planned upstream in the value chain at this time.

Water management goals

Water management goals are directly linked to the targets stated in the company's Energy Policy, which also addresses water management. The emphasis is on continuous improvement of water saving actions, pollution prevention, proper maintenance of technical devices, and identifying and harnessing opportunities to optimise water consumption.

Strategic water consumption targets until 2025, metrics and measures

Target Metrics Actions Implementation in 2024
Improving water consumption intensity in the Petrol Group – limited consolidation by 0.5% compared to the base year 2024. Water consumption intensity is calculated as the ratio of water consumption of companies in limited consolidation to the revenues of the entire Petrol Group. Awareness campaigns, introduction of new energy-saving technologies, use of rainwater, more effective control of water use, etc. The baseline value in 2024 is 258.6 m3/million EUR.
Petrol d.d., Ljubljana: Maintenance of the wastewater recycling system at all automatic car washes.
Petrol d.o.o. (Zagreb):

Establishment of a wastewater recycling system at 100% of automatic car washes.

Percentage of automatic car washes with a recycled and reused water system.

Installation of systems in automatic car washes that enable the re-circulation of water.

100% for Petrol d.d., Ljubljana and 91% for Petrol d.o.o. (Zagreb)

19,000,000 m³ in reused industrial water in a closed system 2,500,000 m³ in treated industrial water at the Štore location.

Volume of reused industrial water.

Volume of treated industrial water.

Implementation of new connections and projects.

18,135,291 m³ in reused industrial water in a closed system 2,809,166 m³ in treated industrial water at the Štore location.

The definition of targets relating to our activity in all geographical locations (excluding the value chain) is based on analyses of water consumption and process efficiency, taking into account:

  • direct measurements of water consumption in individual processes,
  • efficiency modelling based on consumption data,
  • assessments of potential savings when implementing new technologies,
  • comparative analysis of best practices and regulatory requirements.

The targets were also defined in collaboration with expert heads of individual activities, with the target-setting process including an internal analysis of water consumption and environmental impacts, consultations with key stakeholders, including management, professional staff, product managers and the sustainability department, tracking regulatory requirements and industry best practices, and reviewing the results of past actions and plans for the future.

131 E3.MDR-T, paragraph 22, E3-3, paragraphs 23 a, c, 25 Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report 243

Public

The targets are formulated based on scientific knowledge about the sustainable use of natural resources. This takes into account the impact of operations on the water cycle and the need to maintain a balance between economic activities and natural constraints. The Company uses proven monitoring indicators and methodologies and adapts strategies according to evolving environmental and social needs.

The water resources-related targets in the Petrol Group are partly legally mandatory, but mostly voluntary.

Targets related to areas at water risk

Water resource management is recognised as a key strategic area, especially in regions where there is an increased risk of water stress, such as water scarcity during droughts, various restrictions on water consumption, and stricter environmental regulations.

Even in regions where the risk of water stress is increased, the previously stated targets are pursued. This will be achieved by raising awareness among employees about ways to save drinking water and by implementing a range of technical solutions to reduce consumption. Key actions include the introduction of 80% water recycling at all automatic car washes in Croatia, as well as actions such as installing energy-saving taps, energy-saving aerators, low-flow flushers, waterless sanitary technologies, and other actions that reduce water consumption without affecting the user experience.

For more accurate monitoring and optimization of consumption, we also plan to install digital meters, which enable real-time data analysis and quick action in the event of any deviations. We strive to optimise water use and increase water reuse at all operational locations.

E3-4 – Water consumption

Total water consumption at individual companies in the Petrol Group in 2024 by source of supply.

Company Water from public water supply (in m3) Groundwater - from own source (boreholes, wells) (in m3) Surface water - Other: abstraction from watercourses (in m3) Total consumption for our own activity (in m3)
Petrol d.d., Ljubljana 295,051 722,953 222,572 1,240,576
Petrol d.o.o. (Zagreb) 331,117 4,541 0 335,658
Geoplin d.o.o., Ljubljana 230 0 0 230
E 3, d.o.o. 4,185 0 0 4,185
Total 630,583 727,494 222,572 1,580,649

Public Water consumption in the area at water risk at individual companies in the Petrol Group in 2024, which was determined based on a map from the European Environment Agency (EEA), published on 18 November 2021.

Company Water consumption in areas at water risk (in m3)
Petrol d.d., Ljubljana 780
Petrol d.o.o. (Zagreb) 335,658
Geoplin d.o.o., Ljubljana 0
E 3, d.o.o. 0

Recycled and reused water in car washes: In automatic car washes, we most often rely on washing systems with water recycling, which reduce drinking water consumption. Most car washes use filtration systems that allow the reuse of approximately 80% of the water.

Use of treated and re-used water in industry

The economic use of industrial wastewater, its cooling and treatment and its reuse, generated not only beneficial effects on the environment but also creates cost efficiency and competitive edges. An open and closed industrial water circuit are managed in the enclosed economic areas of the Štore and Ravne ironworks, reducing the need for fresh water supply in industrial processes and preparing water that has already been used for re-use purposes. Cooled industrial water in systems is harmless to the environment and can be released back to the environment.

Recycled and reused water at individual companies in the Petrol Group in 2024

Company Industrial water - shared use of treated and reused water in industry (in m3) Industrial water - shared use of reused water in industry (in m3) Total recycled and reused water in car washes (in m3)
Petrol d.d., Ljubljana 2,809,166 18,354,291 292,163
Petrol d.o.o. (Zagreb) 0 0 94,292
Geoplin d.o.o., Ljubljana 0 0 0
E 3, d.o.o. 0 0 0

Stored water and changes in storage at individual companies in the Petrol Group in 2024

Company Stored water (in m3) Changes in water storage (m3)
Petrol d.d., Ljubljana 35,741 0
Petrol d.o.o. (Zagreb) 800 0
Geoplin d.o.o., Ljubljana 0 0
E 3, d.o.o. 0 0

The stored water is held in tanks and is intended to ensure fire safety at service stations and warehouses, as well as to supply the cooling systems of warehouses and the consolidated economic area in Štore (Slovenian: ZGO Štore – združeno gospodarsko območje Štore). No changes occurred in the water storage.

The data for the disclosures in the tables were obtained using various methods that ensure the completeness and accuracy of the information. Data are obtained from direct supplier invoices.

and measurements where these were performed. In cases where data were not available or measurements were not feasible, data were calculated based on other available sources. Estimated values based on historical data and comparative analyses were also used. The share of data for Petrol d.d., Ljubljana obtained on the basis of monthly billed water quantities is 93%, for Petrol d.o.o. (Zagreb) 89%, and for E3, d.o.o. and Geoplin d.o.o., Ljubljana 100%.

Water intensity ratio for Petrol Group - Limited Consolidation* in 2024

Total consumption for our own activity (in m3) Net sales revenue - consolidated** (in EUR million) Water intensity ratio (in m3/million EUR)
1,580,649 6,111.68 258.6
  • Petrol d.d., Ljubljana, Petrol d.o.o. (Zagreb), Geoplin d.o.o., Ljubljana, E 3, d.o.o.

** Financial statement: Income statement of the Petrol Group and Petrol d.d., Ljubljana Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

E5 - RESOURCE USE AND CIRCULAR ECONOMY

ESRS 2 IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities

The process used for identifying and assessing material impacts, risks and opportunities related to resource use and the circular economy is presented in ESRS 2 IRO-1. To verify actual and potential impacts, risks and opportunities, we also apply the following steps.

  1. Identify the locations where own operations are conducted and classify them into groups based on similar technical characteristics and types of impacts related to resource inflows and outflows.
  2. Define the actual and potential impacts associated with resource inflows and outflows.
  3. Assess the material risks and opportunities.

In line with the double materiality assessment, two impacts were identified as actual or potential, and either negative or positive: resource inflows (including resource use), and waste. In the area of resource inflows, including resource use, we recognise an actual negative impact related to raw materials used in our own operations, such as merchandise and packaging. Resource inflows also represent actual and potential positive impacts, as we continue to increase the share of recyclable and recycled materials in products used in our operations. Merchandise is also sold in bulk where possible, and packaging—such as cardboard boxes—is reused wherever feasible.

In terms of waste, we recognise an actual negative impact from the generation of waste during operations and by customers at service stations. Our waste management practices also result in an actual positive impact, as we have established source separation systems at both our operational sites and service stations and carry out our own packaging sorting. No risks or opportunities exceeding the reporting threshold were identified as part of the double materiality assessment.

Where changes to an individual location owned or operated by the company require public consultation in accordance with the applicable Environmental Protection Act or related legislation, we conduct targeted consultations with affected communities or the interested public. Cooperation is further described in section S3.

133 E5.IRO-1, paragraph 11 a-b

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

E5-1 – Policies related to resource use and circular economy

Policies for managing material impacts, risks and opportunities related to resource use and the circular economy are the same as pollution-related policies listed in section E2-1. In addition, we manage resources and waste by taking into account legal and other applicable requirements, as well as internal regulations related to our products and services across all markets in which we operate.

The Petrol Group does not have standalone policies specifically addressing the transition away from the use of virgin resources — including the relative increase in the use of secondary (recycled) resources or the sustainable sourcing and use of renewable resources — as this area is covered under our overarching environmental management system policy. Under this policy, we are committed to the continuous improvement of our environmental management system and to reducing waste. We have also adopted environmental management protocols and procedural rules. These documents form the basis for assessing environmental aspects, setting environmental objectives, and providing guidance for the management of input raw materials and output products (e.g., waste).

E5-2 – Actions and resources related to resource use and circular economy

Based on the identified impacts, we have adopted actions and set environmental targets, presented together in the table in section E5-3. Actions and targets were adopted for Petrol d.d., Ljubljana, which has the largest business share in the Petrol Group. For other companies within the Group — namely E3, d.o.o., Geoplin d.o.o. Ljubljana, and Petrol d.o.o. (Zagreb) — we plan to establish environmental targets and adopt actions within the next two years or by 31 December 2026 at the latest.

To effectively implement these actions, we use the best available technologies and practices in our industry, optimise business and production processes, and ensure compliance with legal and other applicable requirements, as well as internal regulations relevant to our products and services across all markets in which we operate.

E5-3 – Targets related to resource use and circular economy

Through environmental targets and the implementation of corresponding actions, we monitor the mass flows of the most significant raw materials used in our processes and seek to optimise their consumption. With these targets and actions, we strive to optimise waste management, reduce the volume of waste, and limit the environmental impacts associated with waste management.

Environmental targets related to resource use, the circular economy, and waste at Petrol d.d., Ljubljana

Indicative target Implementation target (task) 2024 environmental target 2024 implementations / actions Relation to the domain
Ensure adequate training and awareness of

134 E5.MDR-P, paragraph 14, E5-1, paragraph 15 a-b

135 E5.MDR-A, paragraph 19

136 E5.MDR-T, paragraph 23, E5-3, paragraphs 24 a-f, 25, 27

Employees

Ensure adequate waste management training of employees.

Update/review instructions in line with identified deviations, misunderstandings by employees, legislation amendments, etc.

A review of instructions and regulations was carried out. We updated the rules for oil separators for service stations and the environmental management procedures for the Croatian market, and adopted instructions for oil and grease separators in the Croatian market were adopted.

To enhance employee understanding, training and information sessions on relevant topics were conducted by the competent professional department at management meetings and retail days, where environmental topics were also addressed.

Environmental topics have also been integrated into onboarding training for new employees.

General instructions, reminders, and notifications were communicated via newsletters.

Resource inflows, including resource use

Waste (prevention and disposal)

Circular product design

Circular material use

Informing employees about environmental protection and sustainability procedures through internal communication media

5 events in the Open Space 5 sustainability-related articles in the Energy Among Us internal magazine
10 events held in the Open Space A regular topic in the Energy Among Us internal magazine (38 articles)
Regular Sustainability Tips columns (in the Our Energy e-newsletter) Implementation of the "Me too!" project to raise awareness about sustainable employee activities through an interactive questionnaire
Presentation of the practices of Sustainability Ambassadors

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Resource Use

Waste (prevention and disposal)

Circular Product Design

Circular Material Use

Pollution Prevention

Sustainable Transformation of Service and Private Label Packaging (LBZ)

Ensure appropriate shares of recycled materials, in compliance with the requirements of the SUP Directive.

Launch activities to replace plastic products or reduce the quantities in compliance with the SUP directive (deadline 1/1/2026).

The actions resulting from the enforcement of the SUP137 Directive were implemented in accordance with the planned dynamics:

  • Replacing the packaging of water bottles on the go,
  • Establishing SUP product monitoring records, in compliance with legislation,
  • Reporting on SUP products, in compliance with legislation.

Resource Inflows, Including Resource Use

Waste Management Optimisation

Central collection project for non-municipal packaging; optimisation of waste disposal (reduction of mixed municipal waste138 disposal).

Public Indicative Target

Implementation Target (Task)

2024 Environmental Target

2024 Implementations / Actions

Relation to the Domain According to SUP:


Implementation of a Central Packaging Collection Pilot Project

Installation of mixed municipal waste presses in accordance with the 2023 plan.

The central packaging collection project was in full swing at the end of 2024. The main actions included intensive discussions, negotiations with the storage and distribution management service provider, location preparation, economic calculations, applications for investment assets that will be needed to launch the project, etc.

With the actions of preparing the terrain and setting up presses, the target was achieved according to plan in 2024 (5 new locations: service stations Kozina, Lukovica, Podlehnik, Barje S and Barje J).

Waste (disposal)

Circular Product Design

Circular Material Use

Comprehensive Mass Flow Monitoring of the Top Ten Consumables

Identification of the top 10 consumables, proposal of volume-reducing actions.

Action pertaining to establishing records for the most common raw materials and materials that enter our processes. Raw materials and input materials are identified – the 10 most common or most critical.

Resource Inflows, Including Resource Use

Circular Product Design

Energy and Environmental Data Management

Central energy and environmental accounting via the IT Energy Management Platform.

Preparation of the implementation basis of the energy (2024) and waste (2025-2026) monitoring system.

The energy management IT platform is updated and ready. The main action currently pertains to finding a good and suitable municipal waste volume monitoring solution.

Waste Data Review System


Redefinition of needs, preparation Transfer to 2025.

Resource inflows, including resource use Waste

The achievement of targets consistent with the Petrol Group's policies is monitored through periodic reviews of target status and progress at least once a year, usually at the beginning of the new year for the previous year, or before external ISO audits. During these reviews, the status of targets and actions is assessed, progress analysed, and, if necessary, actions for the following year are redefined.

To ensure adequate employee training, we promote the optimal use of resources and the sustainable waste generation practices. Employees are encouraged to engage in circular product design, optimise resource use, and maximise the reuse of materials classified as MWS - Mixed municipal waste (Slovenian: MKO – mešani komunalni odpadki).

Through the use of sustainable packaging, we are moving away from primary production and towards a circular economy. By optimising our waste management system, we reduce the volume of waste and the environmental burden associated with waste transport. Packaging waste is reused wherever possible — for example, cardboard boxes are returned from service stations to the central warehouse and reused multiple times for product deliveries. In the wholesale sector, plastic containers are reused in the delivery of certain chemicals.

The defined and reported targets related to the circular economy and to resource management within the Petrol Group are partially legally mandated but are mostly voluntary.

E5-4 – Resource inflows

At the Petrol Group, we committed years ago to monitoring ten input materials: office paper; toilet paper and soap; sand for minor spills at service stations; plastic gloves; car wash chemicals; service packaging; plastic garbage bags; cleaning agents for internal use; packaging for our own brands (Vitrex, Antifreeze, Car Shampoo); and IBC - Intermediate Bulk Containers (Oils and Lubricants segment). Until 2024, input materials were monitored for Petrol d.d., Ljubljana only. In 2024, this monitoring was expanded to include other companies within the Petrol Group (E 3, d.o.o., Geoplin d.o.o., Petrol d.o.o. (Zagreb)).

The total quantities of products and technical and biological materials used during the reporting period amounted to 724,536.61 kg.

Volumes and share of key input materials, including recycled and bio-based materials, for the Petrol Group in 2024

Item no. Raw material/input material 2024 Volume (in kg) Recycling volume in kg % recycled

Biological Materials

1 Paper A4 and A3 format 62,271.67 0.00 0.00 0.00 0.00
2 Toilet paper and soap Toilet paper 184,606.70 46,697.0 25.3 183,705.24 99.51
Soap 15,386.00 0.00 0.00 0.00
3 Sand for small spills at service stations ABSORBING POWDER 48,470.00 0.00 0.00 0.00
4 Plastic gloves Disposable GLOVES for refuelling 11,836.40 0.00 0.00 0.00
5 Chemicals for car washes All chemicals included 50,829.60 0.00 0.00 0.00
6 Cleaning agents for own use All cleaning agents included 40,052.22 0.00 0.00 0.00
7 Plastic garbage bags All bags included 35,755.89 0.00 0.00 0.00
8 Service packaging All service packaging

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Packaging composition for private label products - car accessories, in the Petrol Group in 2024

Raw material/input material Product Volume of packaging purchased (in kg) Volume of purchased packaging with a recycled content of 30% (in kg)
Private label packaging Vitrex, Antifreeze and Car Shampoo 88,725.62 65,286.63

In the Petrol Group, some input raw materials and packaging are of biological origin. Among those, paper towels (napkins), toilet paper and some service packaging are predominantly monitored. The biological materials used are certified according to EU Ecolabel, FSC141 and PEFC142 standards.

In 2024, the existing packaging for our private label products (LBZ) Vitrex, Antifreeze and Car Shampoo was replaced with packaging containing 30% recycled rPET143. Of the total 88,725.62 kg of packaging ordered in 2024, 65,286.63 kg was packaging containing rPET, accounting for 73.6% of all orders in 2024.

Of the total volume of input materials in circulation in 2024 (724,536.61 kg), the total weight of reused and recycled materials amounted to 91,492.99 kg, representing 12.63%. IBC containers are primarily reused for orders of oils and lubricants in larger volumes, which are then refilled into smaller, user-friendly packaging. Through resource-efficient handling, we ensure that the IBC containers remain in circulation longer, as they are regularly cleaned and reused.

Volume and share of reused IBC containers in the Petrol Group in 2024

Raw material/input material 2024 Volume in circulation (in kg) Volume of new purchases (in kg) Volume in recirculation Share in recirculation, relative to total circulation (%)
IBC containers 7,490.00 840.00 6,650.00 88.79%

Footnotes:

141 Forest Stewardship Council, FSC

142 Programme for Endorsement of Forest Certification, PEFC

143 rPET – recycled polyethylene terephthalate

To obtain the above data, we relied on the internal tools—Reporting Portal (Microsoft Power BI) and Petrol's Information System—from which we exported data on the volumes of purchased materials. Double counting in the reused and recycled materials categories was avoided by selecting distinct individual items within the applications for each category, as ordered goods are tracked by item code.

E5-5 – Resource outflows

With regard to resource outflows, we report on those points of the standard concerning resource outflows that relate to waste that were identified as a significant sub-topic within the double materiality assessment.

In 2024, the Petrol Group generated a total of 17,418 tonnes of waste.

Total waste volume (t) - 2024 Volume of unrecycled waste (hazardous + non-hazardous) (t) Percentage of unrecycled waste (hazardous + non-hazardous) (%)
17,418.02 15,379.96 88.30

E5-5, paragraphs 37 a-d, 38 a-b, 39, 40

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report 253

Public

Waste (hazardous and non-hazardous) by treatment or recovery method in the Petrol Group in 2024

Diverted from disposal Destined for disposal Total hazardous waste (t)
Preparation for re-use 0.00 31.63 121.77
Recycling 0.00 566.25 2,504.32
Other recovery operations 3,070.57 3,223.97
Incineration
Landfilling
Other disposal operations
Total incineration, landfilling and other disposal

Operations

Disposal Operations Incineration Landfilling Other Disposal Operations Total
0.00 2,006.43 5,195.47 0.00 5,463.85
1,528.30 6,992.15 14,194.05

Waste Composition and Flows

Given the nature of our operations, the most relevant waste streams include paper and cardboard packaging, plastic packaging, and biological waste. For paper and plastic packaging, we are part of the packaging scheme operated by Slopak d.o.o., which collects all such packaging at the source of generation in our operations and manages it in full compliance with applicable legislation — all such packaging is fully recycled. Biological waste is handed over at the source to our contracted recipient, Bioterad.o.o., which also handles it in accordance with current legal requirements. The waste generated through our activities primarily consists of metals, plastics, paper, and biomass.

No radioactive waste was generated by the Petrol Group in 2024.

Calculation Methodologies Used

Data on non-municipal waste are monitored through the IS-Odpadki information system managed by the Slovenian Environment Agency (ARSO), which records all waste received in Slovenia where the original producers are Petrol d.d., Ljubljana, Geoplin d.o.o., Ljubljana, and E 3, d.o.o. For Petrol d.o.o. (Zagreb), data on non-municipal waste were obtained from waste tracking sheets provided by waste collectors, with records maintained on our behalf by a contractor for services related to environmental legislation.

Data on municipal waste were calculated based on an estimate using our own methodology. For office buildings and warehouses, we relied on a reference facility that includes both a warehouse and the administrative offices of two retail organisational units, for which we have the most reliable waste volume data. Based on utility bills, we calculated the amount of waste generated per employee. This figure was then used to estimate the volume of waste for all commercial buildings. To break down municipal waste into mixed municipal waste and mixed packaging, we applied a ratio derived from a sample of service stations.

Estimate for Service Stations

  1. Based on location segmentation, we selected sample service stations in each regional unit in Slovenia: two motorway service stations, two urban service stations, one transit service station, and one local service station.
  2. At the selected locations, we reviewed the volume of municipal waste containers, which are optimised to the minimum. Based on the number of collections and the specific weight of the waste, we estimated the quantity of waste collected in 2024, assuming that containers are always collected when full. Specific weight data were obtained through consultations with several local utility providers and one of our business partners responsible for waste collection.
  3. For each location segment (motorway, local, urban, transit), we estimated the annual average quantity of municipal waste.
  4. The estimated average was used to calculate the volume of municipal waste at each location, based on location segmentation.
  5. The sum of all locations represents the estimated monthly breakdown of annual quantities of mixed municipal waste and mixed packaging waste.
  6. The average annual quantity of municipal waste for service stations in Slovenia was recalculated and this average was also applied to estimate quantities for service stations in Croatia.

SOCIETY

S1 OWN WORKFORCE

ESRS 2 SBM-2 – Interests and Views of Stakeholders


Employees in the Petrol Group are regarded as strategic partners in shaping future plans, particularly in the development of the human resources strategy. We consistently seek employee feedback to guide the design of further actions. A regular dialogue is maintained with the Workers’ Council, which — at Petrol d.d., Ljubljana — has established a dedicated committee for status and HR matters. This forum enables employees’ views to be carefully considered.

We also collect feedback through regular meetings and exchanges with the trade union. Proposals for changes that affect employees are submitted to the Workers’ Council for consultation — or for co-decision where applicable — prior to their adoption. This process allows employees to participate in decision-making ahead of major HR-related developments.

At least once every two years, we conduct surveys to gather insights into the organisational climate, corporate culture, and employee engagement. We also measure satisfaction with the measures implemented under the Family Friendly Company certificate. To encourage open and honest feedback, we work with an external partner that conducts independent and anonymous assessments through multiple channels available to all employees.

ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model

In line with our business strategy and core activities across all four key value chains, we define the impacts on employees, identify opportunities, and actively manage risks. Our strategy combines the management of actual impacts on employees with the anticipation of future changes, thereby ensuring the stability of our business model and long-term competitiveness. The following have been identified as material impacts: employment security, working hours, decent pay, work-life balance, training, and the development of knowledge and competencies.

The Petrol Group is recognised as an important employer in terms of employment security, as one of the largest employers, offering a variety of career opportunities and pathways for development within the company. Working hours and work-life balance are carefully planned, taking into account the Group’s broad operational scope and diverse job roles — considerations that are reflected in the design of our measures. To ensure the ongoing competitiveness and development of the Petrol Group, it is crucial that we provide decent wages — also identified as a potential risk — and foster the development of competencies in line with our strategy.

The most significant impacts primarily affect workers employed under an employment contract, who make up the majority of our workforce. In cases of increased workload or project-based work, the company occasionally engages other forms of labour, such as student work or agency work. Currently, less than 1% of our workforce consists of individuals engaged through employment agencies to perform basic tasks; these are workers who are not part of our own workforce.

Negative impacts

Based on the double materiality assessment, we have identified several negative impacts on our own workforce, particularly in the areas of employment security, working hours, decent wages, work-life balance, gender equality and equal pay, training and development of knowledge and skills, and turnover. The negative impacts are not systemically widespread across our operations but stem from the nature of our business model and corporate strategy.

Employment security represents an actual impact, which we address through strategic planning and regard as an important aspect of long-term employment stability within Petrol. As an employer, we strive to ensure employment security and facilitate transitions between different business segments, supporting employees through competency development and training.

In the current context, job security is also recognised as a potential negative impact in light of the green transition, as changes in legislation, regulations, and structural adjustments to the

business model may affect certain employee profiles and the competencies required by the company. Since regulatory and legislative changes are being introduced gradually, we expect their effects to become more tangible over time— a development we are already taking into account in our strategic planning and HR policy adjustments.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

The Petrol Group ensures a continuous energy supply, which for some employees entails shift work and less favourable working hours. Consequently, certain employees are exposed to shift work, night shifts, and work on Sundays and public holidays. This type of work creates greater constraints on achieving work-life balance, particularly in terms of leave planning and working time redistribution. Those most affected are employees working at sales outlets, in warehouses, and in other roles requiring continuous presence.

A significant negative impact is also identified in the area of adequate wages. As the Petrol Group operates across multiple sectors and markets, ensuring a competitive wage level requires a solid understanding of market pay standards across various sectors, geographies, and employee profiles. If our wage offering does not align with market expectations, it may pose a risk to securing a sufficient number of suitable employees and affect our ability to attract and retain key talent.

The Petrol Group operates across a wide range of activities, job roles, and countries, which influences the gender pay gap and the representation of women in leadership positions. The pay gap, which favours male employees, primarily arises from factors such as company location, sector of activity, and job complexity. When these factors are controlled for, the gender pay gap is low for most employees. Exceptions to this are found in specialised, narrow fields, where the gap is wider due to the nature of the work, limited interest in specific roles, or other contributing factors.

In the context of the green transition and high labour market turnover, a negative impact has been identified in the area of training and the development of knowledge and skills. There is a need to upgrade the systematic transfer of knowledge within the Petrol Group to align with evolving market demands. Currently, employees who already possess the competencies required for the green transition face an increased workload. This may become a more significant challenge in the future, as employees with the most relevant and sought-after skills will be especially sought after, potentially leading to higher turnover.

Positive impacts

The positive impacts of the Petrol Group on its own workforce stem, to some extent, from its geographical reach and wide range of activities, which enable employees to acquire diverse competencies, pursue lifelong learning, and work across various domains. Positive impacts have been identified in the areas of job security, working hours, decent wages, social dialogue, freedom of association, collective bargaining, work-life balance, occupational health and safety, and training and skills development.

The diversification of the Petrol Group ensures a high level of employment security, as employees can develop their careers in different directions. They also have opportunities to collaborate with various institutions and schools, allowing them to make a meaningful contribution to Slovenian acuity. The Petrol Group is recognised as one of the largest and most reputable employers in the region, with no major layoffs to date.

At the Petrol Group, we strive to provide employees with as much flexibility and support for work-life balance as possible, including with regard to working hours. Specifically:

  • Where the nature of work permits, employees are offered the option of working from home and flexible working hours.
  • All employees have access to Family Friendly Company measures, which offer additional flexibility— for example, during a child’s transition to kindergarten, by allowing the transfer of working time shortfalls due to caregiving responsibilities (for children and/or elderly parents), raising awareness among managers about the importance of work-life balance, corporate volunteering opportunities, and the Petrolovček programme (which allows parents to briefly bring their child to the workplace), among other benefits.
  • Wherever possible, employee needs are considered when planning work schedules.
  • Employees may also take special paid leave in the event of personal milestones or exceptional circumstances.

In the area of adequate wages, all employees in the Petrol Group are guaranteed at least the minimum wage, in accordance with the legislation in each country in which we operate. In addition to regular pay, employees receive numerous benefits, such as bonuses for business and work performance, the possibility of using company vacation capacities, supplementary pension insurance, and other benefits.

The system of rewards and social benefits forms part of our broader strategy to ensure competitiveness, workforce stability, and talent attraction, while also enabling flexibility in the business model in light of market and regulatory changes.

An effective social dialogue and cooperation with social partners has been established, including workers’ council, trade unions and workers’ representatives. The primary objective of this cooperation is to ensure respect for workers' rights, which is why decision-making processes take place within the framework of consultations and regular cooperation between the company and internal entities. This structure allows for a timely response to labour-related issues and improvements in business processes. The form of cooperation is tailored to the individual company and local legislation, thereby ensuring flexibility in different working environments.

Employees of the Petrol Group enjoy a high degree of freedom of association, which allows them to seek advice and support for all HR-related issues. Trade union members have access to various benefits, while a variety of social activities such as sports games, are available to all employees. Our employees can express their opinions and views on the state of labour rights within the company through union representatives and can influence change. Employees also participate in the governance of the company through the workers’ council. Ensuring open dialogue between employees and management contributes to creating an inclusive working environment in which workers’ rights are actively represented and integrated into the company’s strategic decisions. More information about unionisation and workers' unions is disclosed in section S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts.

In the Petrol Group, employee rights are governed by a high-quality collective bargaining system. Most employees are covered by corporate collective agreements that regulate the rights and obligations of workers and employers and ensure that pre-agreed labour rights are respected in all circumstances. For certain employees, industry-level collective agreements also apply. Collective bargaining allows the company to gain better insight into the opinions and needs of workers, as employees can express themselves not only through official company channels, but also through their representatives, who then present their views during negotiations in a structured manner. In accordance with the corporate collective agreement, employees are also entitled to solidarity support in the event of the death of a close family member, prolonged illness, disability, natural disasters, and other unforeseen circumstances.

In the area of occupational health and safety, we have established a comprehensive system through which we continuously strive to reduce risk levels, especially in highly exposed jobs where risks are stemming from operational work processes. We are committed to developing solutions that are more health-friendly and safer for employees. All employees are included in a preventive health check-up programme, with special attention paid to workers with reduced work capacity. In this context, the Healthy at Petrol programme has been established, the main aim of which is to encourage employees of all generations to take more active care of their own health.

Employees have access to a variety of education and training programmes that enhance their professional expertise and contribute to both personal and professional development. Through various programmes, a leadership system, and internal coaching at different levels, we foster the development of managerial, communication, and motivational skills, strategic and systems thinking, and personal competencies. We see significant opportunity in strengthening our employees’ digital competencies, as digitalisation is becoming a key tool for improving processes, boosting efficiency, and adapting to changing market conditions.

For workers who are not in regular employment (i.e. people in its own workforce who are not employees), we provide structured onboarding and training, including foreign language learning. They are ensured all occupational health and safety measures and are offered equal conditions regarding working hours and pay as regular employees.

Risks and opportunities

In the Petrol Group, ensuring adequate wages is recognised as a significant risk in relation to our own workforce. In most of the countries where we operate, low unemployment rates and shortages of specific workforce profiles pose a risk to the implementation of our activities. This is particularly evident in roles requiring a larger number of employees (e.g. service stations) or in specialised profiles (e.g. technical staff).

The risk related to adequate wages is also present when attracting and recruiting talent, due to

to strong competition among employers in the labour market. Since the Petrol Group operates across multiple markets and business segments, this risk may manifest as falling behind market wage levels or insufficient tailoring of wage offerings to specific profiles and markets. We mitigate this risk by monitoring wage competitiveness and applying a remuneration policy that recognises and rewards employees who contribute significantly.

Since the Petrol Group operates in European countries where forced or compulsory labour and child labour are legally prohibited, these risks are not present.

The Petrol Group also recognises numerous opportunities, which, based on the financial materiality assessment, do not exceed the threshold for mandatory reporting.

Employees in specific risk categories

The Petrol Group bases its understanding of employees who work under special circumstances or are exposed to higher risks on its own risk assessment and applicable legislation. In several countries where we operate, legislation already defines protected categories of workers who, due to increased vulnerability, are prohibited from performing certain tasks at specific times or under specific conditions. These protected categories mainly include women and employees during pregnancy and parenthood, persons with disabilities, and older workers. The Petrol Group consistently complies with the legal restrictions applicable to these groups, which may include restrictions on working hours, bans on performing certain tasks, or other forms of protection.

The Petrol Group also proactively identifies vulnerable employee groups and special working conditions through a careful review of jobs as part of the Risk Assessment. For each workplace, we identify risks to health and safety and develop an action programme that ensures regulatory compliance and minimises hazards and harmful exposures to the lowest possible level.

S1-1 – Policies related to own workforce

In the area of managing our own workforce, the Petrol Group has developed a human resources strategy for 2024–2025, with foundations and proposals extending through 2030. The strategy clearly defines strategic projects and future orientations. The President of the Management Board of Petrol d.d., Ljubljana, is responsible for implementing the HR policy and the material rights of employees.

Employee rights in the Petrol Group are regulated in compliance with local legislation, binding collective agreements, and internal collective agreements and rules. In cooperation with workers’ representatives, companies adopt internal provisions on employee rights, which are strictly followed. In this way, we manage material impacts, such as wage competitiveness, working hours and related employment matters, as we are committed to respecting rest periods, paying allowances for less favourable working hours, and ensuring compliance with wage-related legislation.

At Petrol d.d., Ljubljana, we hold the Family Friendly Company certificate, under which we have adopted measures and processes to support work-life balance. We are audited annually by an external partner, we monitor key indicators, communicate the measures, and upgrade them as needed. We are also signatories to the Diversity Charter, recognising that an inclusive work environment is key to employee well-being. The basic principles of both certificates are also reflected in our subsidiaries, with the measures adapted to the local markets. In line with the HR strategy, these measures will continue to be strengthened.

Our policies for managing material impacts, risks and opportunities apply primarily to all employees across the Petrol Group. Local legislation and internal regulations govern the treatment of special workforce groups (e.g. in Slovenia and Croatia), defining special restrictions regarding working hours and work locations for vulnerable employee groups – particularly women, employees during pregnancy and parenthood, persons with disabilities and older workers. This ensures that, despite the need for continuous operations, the agreed rights and limitations related to working hours for these groups are upheld.

146 MDR-P S1-1, paragraph 19, S-1, paragraphs 20, 20 a-c, 21, 22, 23, 24 a-d

Employee rights in the Petrol Group are

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Our policies are aligned with internationally recognised instruments such as the OECD Guidelines for Multinational Enterprises, the UN Global Compact principles, and the Sustainable Development Goals (SDGs).

The internal Code of Conduct of the Petrol Group defines the fundamental principles of business conduct, including respect for human rights, ethical behaviour, and environmental responsibility. It applies to all companies within the Petrol Group and across all markets in which we operate. It serves as a framework for establishing and strengthening business standards across the Group and in cooperation with business partners across all Petrol value chains.

The Code applies to all key stakeholders — including employees, customers, business partners, suppliers, and the broader social community. It is publicly available on the Petrol website. The Petrol Group’s management actively encourages consistent implementation of the Code through business practices. Employees and external experts were involved in drafting the Code to ensure its relevance. It serves as a foundational framework for our operations, with additional measures and policies introduced, as needed, in cooperation with relevant stakeholders.

In line with these standards, we conduct regular audits and obtain certifications such as ISO 9001 for quality management systems and ISO 14001 for environmental management. We have also introduced employee awareness and training programmes focused on ethical behaviour and sustainable practices.

The adopted policies are reviewed multiple times a year to ensure alignment with evolving international standards and to reflect global trends. We remain committed to sustainable development and responsible business conduct, including continuous engagement with stakeholders and independent organisations to monitor and improve our practices.

In the countries where the Petrol Group operates, human trafficking, forced or compulsory labour, and child labour are prohibited by law. Accordingly, we do not have dedicated policies in this area, as compliance with local legislation is mandatory.

Guaranteeing human rights

Respect is one of the core values of the Petrol Group and is embedded across all areas of our operations. In line with the national constitution and international conventions, we respect the human rights of our employees. At the same time, our internal acts oblige our employees to respect the human rights of others.

In all procedures concerning our own workforce, we ensure equal rights and opportunities for every individual. This includes the protection of privacy, freedom of thought, freedom of association, and equality in employment and remuneration — regardless of gender, race, skin colour, age, health status or disability, religion, political or other beliefs, trade union membership, national or social origin, family status, economic situation, sexual orientation, or other personal circumstances.

We are committed to an inclusive working environment where all employees can contribute their knowledge, experience, and skills while also developing both personally and professionally. The key elements of our approach include:

1. Engagement in strategic decisions and projects

Employees are actively involved in the development and implementation of key projects and in shaping strategic decisions. We collect their feedback through surveys, focus groups, and regular meetings. This fosters a sense of belonging and enables employees to have a meaningful influence on the company’s operations.

2. Development of competencies and career paths

We promote lifelong learning and career development through a range of training programmes, mentoring schemes, and promotion opportunities. We encourage employees to move between departments and functions, which enhances their professional expertise and adaptability.

3. Supporting diversity and inclusion

We place special emphasis on equal opportunities for all employees, regardless of gender, age, nationality, or other personal circumstances. We promote diversity because we believe that a variety of backgrounds and perspectives strengthen innovation and drive the success of our organisation.

4. Employee well-being

We provide a safe, healthy, and supportive working environment. Flexible working arrangements, initiatives to promote psychological and physical well-being, and mechanisms for achieving a healthy work-life balance are in place.

5. Communication and recognition

We actively promote open communication with employees and recognise their contributions. Employees are regularly informed about the company’s goals and results, and individual and team achievements are celebrated.

Employees can report potential human rights violations through established communication channels, as outlined in section S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns. In response to the feedback received, the Petrol Group takes appropriate remedial actions to address and eliminate impacts on human rights.

Workplace accident prevention

The Petrol Code of Conduct, which applies to all companies within the Petrol Group, outlines the Group’s policy on occupational health and safety. The Code identifies safety, occupational health, and security as core values. Employee safety at Petrol is ensured through the continuous identification and assessment of risks, which forms the basis for implementing and improving safety measures for both employees and business partners involved in our operations.

Through preventive measures, we reduce hazards and workplace strain, minimise the occurrence of occupational illnesses, improve safety culture, and enhance employee efficiency. In our commitment to providing a safer environment for employees and customers, and to fostering better working conditions, we implement a variety of measures to reduce or prevent criminal acts by third parties — such as theft or intentional bodily harm.

The Code of Conduct is publicly available on Petrol’s website. The Petrol Group’s management actively promotes the consistent application of the Code in business practices. Employees and external experts were involved in its preparation, ensuring its relevance. The Code serves as a foundational framework for our operations, and, based on engagement with relevant stakeholders, additional measures and policies are developed as needed.

Petrol d.d., Ljubljana; Petrol d.o.o. (Zagreb); E 3, d.o.o.; and Geoplin d.o.o., Ljubljana (hereinafter the Petrol Group – limited consolidation) have adopted a Safety Statement with Risk Assessment. By signing this statement, top management has committed to ensuring the provision of financial and human resources needed to ensure safety. The risk assessment is carried out for all workplaces using a modular approach. It provides a comprehensive overview of hazards and risks at each position and identifies which safety measures are already in place and which are scheduled for future implementation.

Elimination of discrimination

Petrol's Code of Conduct, “The Energy of Our Conduct”, explicitly addresses the issue of discrimination. We are committed to eliminating any form of discrimination based on race, ethnic origin, skin colour, gender, sexual orientation, gender identity, disability, age, religion, political belief, national or social origin, and other forms of discrimination as defined by EU.

regulations and national legislation. Our policy does not include specific procedures regarding the promotion of diversity and inclusion. We are aware of the impact we have on the lives and rights of individuals and communities wherever we operate. For this reason, we advocate for equality and equity for all and respect differing opinions and perspectives. We do not tolerate any form of violence or harassment in the workplace — including emotional, psychological, verbal, or sexual harassment. We actively engage with partners and other stakeholders who uphold human rights and fundamental freedoms.

In the event of any perceived discrimination in the workplace, employees can report concerns through the independent Spregovori (‘Speak up’) whistleblowing line, which is managed by Deloitte on behalf of Petrol d.d., Ljubljana and all Petrol Group companies. We take all reports seriously and are committed to reviewing each one and initiating investigations as necessary. Reports are treated as confidential, and employees are not required to disclose their identity unless they choose to do so.

The Spregovori (‘Speak up’) hotline is available for reporting irregularities in the following areas: bullying, bribery/corruption, violations of policies/procedures, conflict of interest, discrimination, fraud, health/safety/environment, sexual harassment and violence, inappropriate conduct, theft, and other serious breaches.

S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts

Impacts on our own workforce are managed through cooperation with employees and their representatives. We review their views, gather feedback and meaningfully incorporate them into the decision-making process, in accordance with legislation and internal agreements. The rules of cooperation may differ between countries.

Cooperation with employees is in place across all companies of the Petrol Group. In Petrol d.d., Ljubljana, Petrol d.o.o. (Zagreb), Petrol Geo d.o.o., Geoplin d.o.o., Ljubljana, Zagorski, Metalac d.o.o., and Petrol Crna Gora MNE d.o.o., cooperation takes place through elected workers’ representatives, such as the workers’ council and/or trade union. In other companies, cooperation is less formalised and takes place via open communication with employees.

The management of each company is responsible for ensuring cooperation with employees. The Petrol Group has adopted a Corporate Governance Policy, aimed at ensuring transparent operations in compliance with legislation and standards, clear definition of roles and responsibilities, rapid and efficient transfer of information, and the dissemination of good practices and knowledge to support the realisation of the Petrol Group's mission and strategy.

The Corporate Governance Policy regulates:

  • Representation and decision-making in business matters.
  • Roles and responsibilities in business operations.
  • Employee responsibility.
  • Roles and responsibilities in the planning process.

These rules apply to all companies in which Petrol d.d., Ljubljana, has a controlling influence.

Collaboration with representatives of employees

At Petrol d.d., Ljubljana, the rules for cooperation with the workers’ council are defined in the Agreement on Employee Participation in Company Governance. In line with this agreement, the company informs the workers’ council and conducts consultations before making decisions on key HR matters that affect employees’ health, well-being or financial situation. The agreement also specifies the resources available to the workers’ council for its operations — namely human resources (i.e. additional roles that employees may take on within the workers’ council), and material resources (e.g., appropriate working conditions in the form of office space, communication tools, and other necessary means). We also comply with legislation that requires the workers’ council to give its consent for decisions concerning essential HR issues, such as the criteria for rewarding innovation activities, evaluating work performance, and promotions. Furthermore, representatives of the workers’ council are included in the Supervisory Board of the Company.

Petrol d.d., Ljubljana also works closely with the workers’ union in accordance with the Company Collective Agreement, which defines the union’s scope of work and stipulates the Company’s obligation to inform the union of any measures, intentions, or business operations that may affect the position of employees.

Cooperation with workers' representatives also takes place in other companies in Slovenia and Croatia where the union is present (e.g. Petrol Geo d.o.o., service stations under management, and Petrol d.o.o. (Zagreb)) or where a workers’ council is established (e.g. Geoplin d.o.o., Ljubljana). In these companies, cooperation is conducted in compliance with applicable legislation, whereby social partners are involved in consultation or co-decision processes on matters concerning significant HR decisions.

In other companies of the Petrol Group, cooperation with employees is carried out in accordance with local legislation and binding collective agreements; no global or other agreements have been concluded. Cooperation takes place through social partners, workers’ representatives or through direct communication and information-sharing with employees. Employee rights are harmonised with social partners across the entire Petrol Group before their implementation.

Types of cooperation

Cooperation with the workers’ council and the trade union generally takes place in the form of meetings, where minutes of the meeting are taken. The minutes of the workers’ council meetings are published and made available to all employees of the company. Feedback on the submitted proposals is provided in writing, along with the company’s formal response to each proposal. The workers’ council and the trade union cooperate on all essential HR matters, including those arising in the context of the green transition.

The frequency of cooperation depends on how often changes or company plans arise that affect the situation of employees. In 2024, Petrol d.d., Ljubljana (the parent company) held 14 workers’ council sessions, during which the company presented various initiatives, topics and changes on which the workers’ council could offer feedback or give formal consent. In this way, employees contributed, among other things, to decisions regarding the annual working time plan and collective leave, with the opportunity to co-decide. They also submitted proposals regarding the Working Time Rules, the Right to Disconnect Rules, and numerous other topics.

In 2024, an annex to the Corporate Collective Agreement was signed with the trade union, in which the provisions regarding the right to disconnect were agreed on together. The agreements reached with employees —based on which several new internal rules and amendments to the Corporate Collective Agreement were adopted, with proposals or approvals from workers’ representatives— confirm the effectiveness of employee cooperation.

The Petrol Group also conducts anonymous surveys to gain insight into employee views, with the aim of gathering relevant information that serves as a basis for reviewing working conditions, the work climate, satisfaction and engagement. Every employee has the opportunity to submit anonymous feedback, including via open-ended questions where they can express their views and suggestions.

S1-3 – Processes to remediate negative impacts and channels for its own workforce to raise concerns

The processes and mechanisms for addressing and remedying negative impacts in the Petrol Group are designed in compliance with the highest international standards, such as the UN Guiding Principles on Business and Human Rights and OECD Responsible Business Conduct Guidelines. Negative impacts primarily concern matters related to the working environment, ethical conduct and legal compliance. In this way, Petrol provides employees with a safe space to voice their concerns and report potential violations.

A structured system has been established for handling reports, with clearly defined procedures for verifying, processing and implementing appropriate corrective actions. These mechanisms are designed to foster employee trust and include regular independent reviews of their effectiveness. Employees are informed about the available reporting channels and the importance of using them to help create a transparent and fair working environment.

As part of these efforts, we conduct regular employee training sessions covering topics such as identifying irregularities, handling ethical dilemmas, and reporting procedures for misconduct. Employees are guaranteed full protection against retaliation, which is a key element in the effective operation of these mechanisms. The procedures are designed to ensure the prompt handling and resolution of reports, with all steps clearly documented and transparent.

We also implement preventive measures to reduce the risk of negative impacts on the workforce. This includes risk assessments related to the work environment and business practices, as well as initiatives aimed at strengthening a culture of compliance and integrity. Special attention is given to involving employees in the development and continuous improvement of these procedures, which reinforces their trust and fosters a stronger sense of belonging within the company.

152 S1-3, paragraphs 32 a, b, c, d, e, 33 The processes and mechanisms for addressing and remedying negative impacts in the Petrol Group are designed in compliance with the highest international standards.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report 269

In line with the United Nations Guiding Principles and OECD guidelines, we continuously strive to improve our procedures for ensuring remedy and addressing irregularities. Feedback from employees and other stakeholders is incorporated into the enhancement of these systems and their adaptation to changing needs. This includes adjusting existing mechanisms and introducing new ones where necessary to ensure the timely and effective resolution of all workforce-related issues.

Concern-reporting channels

Petrol d.d., Ljubljana is committed to fostering a safe, encouraging and ethical working environment for all employees in the Group. To enable employees to express concerns or report irregularities, we have established multiple reporting channels that ensure confidentiality and efficiency. These channels are designed to support timely and effective handling of reports while fostering employee trust in the system.

The Speak Up programme allows employees to anonymously report serious breaches and other irregularities. Reports can be submitted via a dedicated phone hotline (080 13 95) or through other secure and suitable channels that guarantee full confidentiality and safety for the whistleblower. The Whistleblower Protection Officer ensures the rights and protection of those who report issues, operating in line with binding regulations and good international practices.

In addition to the Speak Up programme, employees can contact the Corporate Integrity Officers directly at [email protected]. The officers provide support in handling reports and offer guidance on matters related to ethical business decision-making, compliance and integrity.

The Speak Up programme is managed by an independent external organisation with extensive experience in managing confidential information. This adds a layer of objectivity, independence, and anonymity to the process and strengthens employee trust by ensuring impartial handling and the prevention of retaliation.

Special emphasis is placed on preventing workplace bullying (mobbing). Our internal policies clearly reflect a zero-tolerance approach to all forms of bullying, discrimination, or harassment. Mechanisms for reporting mobbing are integrated into existing reporting systems and provide dedicated support through the relevant departments and designated officers. The Anti-Mobbing Officer is specifically appointed to protect employees in this regard.

All reporting channels are safeguarded by advanced security protocols, ensuring data protection and confidentiality. In line with the Security Update Management Policy, these systems are regularly reviewed and updated to maintain high levels of cybersecurity and resilience against emerging threats.

In line with the United Nations Guiding Principles and OECD guidelines, we continuously strive to improve our procedures for ensuring remedy and addressing irregularities.

Complaint-handling mechanisms

Petrol d.d., Ljubljana has established multi-layered and comprehensive mechanisms for handling complaints and grievances, enabling employees across the Group to raise concerns or report irregularities in a safe, confidential and efficient manner. These mechanisms are aligned with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Responsible Business Conduct.

Key mechanisms include:

  • Anonymous whistleblowing hotline: Employees have access to the anonymous Speak Up line, which ensures confidential handling of reports and enables whistleblowers to report concerns without fear of retaliation.
  • Integrity email address: A dedicated email address ([email protected]) is available for employees to report matters related to ethics or grievances.
  • Direct communication with superiors: Employees are encouraged to approach their immediate superiors for consultation or to report complaints, fostering open dialogue and swift resolution of issues at the local level.
  • Corporate Integrity Officers: These officers ensure impartial and professional handling of complaints and support employees in addressing complex matters related to integrity and compliance.
  • Formalised complaint-handling procedures: All complaints are processed in line with clearly defined procedures that include information gathering, investigation, and the implementation of appropriate remedial actions. All phases of the process are documented and transparent.
  • Engagement of independent experts: When necessary, Petrol involves external experts.

Monitoring and oversight of concerns

Petrol d.d., Ljubljana has implemented a comprehensive system for monitoring and oversight of issues raised through established communication channels. We are committed to transparency and efficiency in handling reports, ensuring continuous improvement of processes and strengthening employee and stakeholder trust in these mechanisms.

All reports received via the various channels are centrally logged and analysed. This includes identifying key themes and recurring patterns, enabling the company to detect systemic issues or emerging risks in a timely manner. In addition, Petrol conducts quarterly assessments of the effectiveness of its complaint-handling processes — evaluating resolution timelines, the adequacy of measures taken, and employee satisfaction with the outcomes.

Findings from these analyses are discussed at quarterly governance meetings, where key performance indicators related to the effectiveness of reporting channels and proposed improvements are reviewed. This approach facilitates ongoing performance monitoring and strategic decision-making at the highest level.

Based on feedback and insights, we continuously refine and enhance our reporting channels and response processes. Process optimisation and the integration of new technologies ensure that all channels remain effective, secure and accessible to all employees. At the same time, we ensure that our monitoring and oversight systems not only fulfil their intended functions but also support sustainable development and foster a trustworthy working environment.

Employee awareness of structures and procedures for raising concerns

Petrol d.d., Ljubljana, implements a range of activities to ensure that employees across the Group are familiar with the structures and procedures in place for raising and addressing concerns or needs. These efforts enhance employee trust in the established channels and encourage their active use.

Employees have access to all key information through the internal portal, which clearly describes communication channels — including the Speak Up programme, contact details of Corporate Integrity Officers, and procedures for reporting irregularities. Internal newsletters and articles published on the portal further strengthen awareness, with view and click metrics monitored to gauge the reach and impact of the information.

To support this, regular training sessions and workshops, which include presentations on these procedures and structures, are organised. Each training concludes with a knowledge check, such as multiple-choice questionnaires, to ensure that employees understand both the content and practical functioning of the mechanisms available to them.

Special attention is paid to raising employee awareness of the availability and use of these channels. Regular communication activities and internal trainings ensure that all employees are informed of the available reporting options and the procedures in place to guarantee safe and effective resolution of their concerns. After each training session, employee feedback is analysed to improve channel effectiveness and adapt the approach to evolving needs.

Each employee receives a copy of the “Principles of Integrity and Ethical Conduct of Petrol” booklet, which serves as a guide to the Group’s core standards, values and procedures. It presents, in a clear and accessible way, the rules established to ensure compliance, integrity and ethical conduct— including information on all available concern-raising channels.

To further assess employee awareness, Petrol d.d., Ljubljana conducts regular corporate climate surveys, which include questions on trust in the procedures and reporting mechanisms. The results provide valuable insight into employees’ perceptions of these structures and their.

awareness of the systems in place. By combining information, training, guidance materials, internal newsletters and regular feedback monitoring, Petrol d.d., Ljubljana ensures that employees across the Group are well-informed about the structures and procedures enabling them to raise concerns. This approach not only builds trust in these mechanisms but also supports a culture of open communication, accountability and ethical behaviour.

Clear rules are also in place to protect individuals who use these channels from retaliation. These protections are set out in the internal acts of each company within the Group and guarantee that any reporting person is shielded from negative consequences. A designated Whistleblower Protection Officer is responsible for the impartial handling of all reports and for providing additional protection to those who raise concerns.

S1-4 – Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions and approaches

Across all markets in which it operates, the Petrol Group actively manages the impacts, risks and opportunities related to its own workers through the following approaches:

  • Situation assessment

Employee satisfaction surveys are conducted at least once every two years. Additionally, monthly analyses are carried out on employee turnover, diversity, and workforce needs to identify key areas for improvement.
- Employee strategies / HR strategy

− Health and well-being are promoted through mental health programmes, sports activities, and flexible working arrangements.

− Competence development is supported through training initiatives and educational subsidies.
- Employee communication

Employees are engaged in decision-making processes through meetings, focus groups, and feedback tools.
- Monitoring progress

A set of key performance indicators (KPIs) is in place — including satisfaction levels and training effectiveness. Outcomes are also tracked after each training session.

To support the continuous implementation of these activities, the Group leverages a range of resources — including a dedicated budget for employee development, digital tools for monitoring satisfaction, and partnerships with educational institutions and consultancy firms.

The Petrol Group manages its impacts on employees and related risks through employee care projects, monitoring employee well-being, and agreements on employee rights. These activities are carried out within the Human Resources Department, which employs 39 HR professionals across the Group’s major companies.

As part of the HR strategy, additional funding is planned over the next five years to support projects focused on employee development, education and well-being.

Actions intended to prevent or mitigate material negative impacts

To prevent or mitigate negative impacts, we implement and plan various actions aimed at creating a work environment that fosters motivation, satisfaction, and long-term well-being of employees. These actions include:

  • Occupational safety training is conducted and appropriate equipment and working conditions are ensured.
  • Programmes to promote mental health and access to counselling services have been established.
  • Flexible working hours and the option of hybrid work have been introduced, which allows for better work-life balance.
  • A healthy lifestyle is promoted through health check-ups and stress management workshops.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Employee Well-being and Development

  • An active lifestyle is promoted through the organisation of sports activities and the provision of additional days of leave for rest and recovery.
  • Systematic investment is made in employee training through internal workshops, external seminars, and access to online learning platforms.
  • Individual development paths are planned for key talent, contributing to increased satisfaction and loyalty.
  • Awareness-raising workshops on equality and inclusion are conducted.
  • Regular employee satisfaction surveys and focus groups are organised to identify challenges and proposals for improvement.
  • Open communication channels have been established to address issues and real-time feedback.
  • Adequate wages are ensured through regular monitoring of wage competitiveness.
  • High-performing employees are additionally rewarded with various performance recognition programmes at service stations, while the performance of other employees is regularly monitored through targeted-based management.
  • Sales skills are developed through coaching processes at service stations, and the transfer of knowledge is systematically supported.
  • Inclusion is encouraged through open communication and team-building events.

Petrol has taken measures to mitigate negative impacts on employees arising from the transition to a greener, climate-neutral economy. Employees are provided with training and education to acquire new skills needed to work in a sustainable business environment. We promote the transition to green technologies, which includes adapting jobs and tasks, and we provide support for retraining to reduce the negative effects on employees in sectors most exposed to change. In addition, we are introducing flexible forms of work and well-being support to facilitate a smoother transition to the new way of doing business. We monitor the effects of these measures and adjust our operations to ensure that the transition does not negatively affect our employees.

To ensure employment security, we are developing a competency model that defines not only the skills currently needed but also future competencies essential to the group’s business sustainability. The competency model will be integrated into all phases of the employee work cycle, serving as a tool for selection, onboarding, development, and career progression. Ongoing communication and collaboration with employees are also essential alongside the development of new competencies. We plan to hold regular workshops and consultations to better understand employee needs and involve them in the transition process. Furthermore, we will provide access to additional resources, such as mentoring, online learning platforms, and individualised training programmes.

When we receive a report of irregularities from an employee, the case is thoroughly examined and, where necessary, independent experts are engaged to conduct an impartial investigation. Where negative impacts are identified, we implement corrective measures, such as compensation for harm, adjustments to working conditions, or sanctions for those responsible. We learn from individual cases by analysing root causes and introducing preventive changes to our processes, thereby reinforcing a responsible and sustainable working environment.

Monitoring and Evaluating the Effectiveness of Actions and Initiatives

We have established a systematic approach to adopting appropriate measures and to monitoring and evaluating the effectiveness of actions and initiatives aimed at improving working conditions and employee satisfaction. The approach is based on a combination of qualitative and quantitative methods. At least once a year, we conduct surveys on employee satisfaction and well-being, the results of which serve as a key tool for adapting employee-related activities.

We monitor performance indicators, such as the turnover rate, productivity, the number of reported issues related to working conditions, participation in training, levels of participation in internal events, and results of employee satisfaction and engagement surveys. Based on the collected data, we carry out trend analyses to identify which negative impacts are increasing and how they affect our operations. We use statistical methods to identify patterns and forecast potential future risks. Once key areas requiring action are identified, we prepare concrete measures, such as additional training, adjustments to working conditions, or changes in work organisation.

Focus groups and regular employee discussions play an important role, providing in-depth insights into employee experiences and needs.

insight into specific challenges and opportunities affecting employee well-being. We have introduced internal audits to assess whether the measures are in line with our policies and values. We also organise regular meetings with management and human resources departments to analyse specific situations and risk assessments, in order to determine which actual or potential impacts are of greatest concern. On this basis, we develop guidelines for actions that align with the Group's values and the needs of employees.

The results of our monitoring are included in sustainability reports and shared with all stakeholders, enabling transparency and accountability. Based on these findings, we continuously adapt our measures to ensure their long-term effectiveness and impact.

Risk mitigation and opportunity harnessing actions

In our risk mitigation actions around adequate wages, we focus on talent retention, competence development, and employee satisfaction through various programmes and additional benefits for employees. We are introducing employee retention programmes, including development plans, internal promotions, and competitive remuneration packages. We monitor employee turnover and analyse the reasons for departures.

We continuously invest in employee education and retraining and monitor the effectiveness of these programmes using indicators such as participation rates and their impact on business performance. Innovation is encouraged and ideas are rewarded. We offer preventive programmes and flexible working time arrangements, with effects measured through employee satisfaction surveys and absenteeism data.

We also promote diversity and inclusion through awareness-raising workshops and monitor the impact using inclusion and diversity indicators. The effectiveness of all implemented actions is monitored through surveys and meetings, with findings included in internal reports — enabling us to adapt and improve measures for greater effectiveness.

The Petrol Group implements various measures to harness opportunities related to our own workforce. However, based on the assessment of their financial materiality, these opportunities do not exceed the reporting threshold and are therefore not disclosed.

We are committed to ensuring that our practices do not cause negative impacts on the workforce (employees). Accordingly, we monitor and assess working conditions at least annually and conduct internal audits and risk analyses. Policies are in place to safeguard employee safety, equality, and well-being, including anonymous surveys and open dialogue. When potential issues are identified, we immediately implement appropriate corrective actions, such as adjustments to working conditions and/or additional employee training. Our practices comply with legislation and ethical standards, ensuring that they do not generate adverse impacts on employees.

S1-5 – Targets related to managing material impacts, advancing positive impacts, as well as to risks and opportunities

The Petrol Group's targets related to managing the significant impacts, risks and opportunities associated with its own workforce focus on creating a stable and stimulating working environment. We aim to reduce talent turnover by developing targeted career development programmes, improving working conditions, and implementing internal reward systems. We also seek to increase employee satisfaction and engagement.

We invest in continuous education and training to ensure our employees are well-prepared for future challenges, while also promoting physical and mental well-being by expanding opportunities for physical activity and mental health support. Increasing diversity and ensuring equal opportunities for all employees are core objectives, as we believe that inclusive practices foster greater innovation and a more dynamic work environment.

To achieve these goals, internal mechanisms have been established to monitor progress, evaluate outcomes and ensure transparency — supporting responsible workforce management and effective risk mitigation.

At Petrol d.d., Ljubljana, employee representatives who are members of the Supervisory Board also participate in shaping the Group's objectives. The Supervisory Board monitors the implementation of these objectives and based on business performance, contributes to identifying insights and potential improvements.

In accordance with the Employee Participation Agreement, the Workers’ Council is also informed about the company’s financial position, strategic goals, and results. Within this framework, employees are encouraged to share opinions, proposals, and initiatives.

We invest in continuous education and training to ensure our employees are well-prepared for future challenges.

In other companies within the Group, workers’ representatives are not directly involved in setting targets, monitoring performance or proposing improvements. However, employees can still contribute through established open communication channels — such as the “Tell the Management Board” platform, where they can offer feedback, suggestions, and initiatives to the Group management, communicate openly with their superiors, or participate in management’s open-door events.

S1-6 – Characteristics of the Undertaking’s Employees

At the end of 2024, the Petrol Group employed a total of 5,944 people, of whom 49% were women and 51% were men. The largest number of employees was in Slovenia, namely 3,262 at the end of 2024, followed by Croatia with 1,963 employees. Smaller numbers of employees are also employed in Bosnia and Herzegovina, Serbia, Montenegro and Austria.

The number of employees includes regularly employed persons (under contract), irrespective of the type of contract (for an indefinite or fixed term) and irrespective of the proportion of working hours (full-time or part-time). The data illustrate the number of employees on the last day of 2024. The country of employment refers to the country in which the employee concluded an employment contract, and gender is defined as female and male. Data on employees in individual companies in the Petrol Group have been obtained from colleagues in each of the respective companies.

In the accounting section of the annual report, employee data is disclosed in section 5.6 Labour costs.

Number of employees in the Petrol Group as at 31/12/2024 by gender and country of employment

Gender SLO CRO Bosnia and Herzegovina SRB MNE AUT Total
Female 1,566 1,056 126 98 59 0 2,905

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Number of employees in the Petrol Group as of 31 December 2024, by gender, type of employment contract and working time

Gender Number of permanently employed employees (number of persons) Number of temporary employees (number of persons) Number of full-time employees (number of persons) Number of part-time employees (number of persons)
Female 2,652 253 2,892 13
Male 2,721 318 3,005 34
Total 5,373 571 5,897 47

Number of employees in the Petrol Group as of 31 December 2024, by the country of employment, contract type and working hours

Country Number of employees (number of persons)
SLO 3,262
CRO 1,963
BIH 310
SRB 260
MNE
Other

The majority of employees in the Petrol Group are employed on a permanent basis (90%) and full-time (99%). This applies to all countries in which we operate, although the percentages vary. Part-time employees have a part-time contract with the company, which means they may be employed by multiple companies, either within or outside the Petrol Group. In the division between full-time and part-time work, reduced hours due to parental leave and/or disability are not included. Fixed-term employees include those employed due to a temporary increase in workload, replacement of a temporarily absent employee, or project-based work. The Petrol Group does not have any employees without a guaranteed number of working hours.

155 S1-6, paragraphs 50 a-f, 51

156 Including employees at managed service stations.

157 Labour costs do not include the labour costs of so-called CODO service stations (Company Owned, Dealer Operated), which are classified under service costs.

Number of permanently employed employees (number of persons)

3,218 1,708 223 142 80

Number of temporary employees (number of persons)

44 255 87 118 67 0

Number of full-time employees (number of persons)

3,230 1,957 309 252 147 2

Number of part-time employees (number of persons)

32 6 1 8 0 0

Employee turnover

The average employee turnover in the Petrol Group in 2024 was 24%. The turnover rate also depends on the total number of employees in each individual company within the Petrol Group. As a result, smaller companies can show a higher turnover rate even with one departure per year (e.g. LPG HIB d.o.o.). In companies where the majority of employees work in trade, we observe higher turnover rates, a common feature of the sector. Turnover is also influenced by the local context and, as a rule, a higher turnover rate is observed outside Slovenia.

Employee turnover is monitored monthly and appropriate action is taken where necessary. Because there are many causes of turnover, we monitor as many aspects of employee satisfaction as possible. The organisational climate is measured at least once every two years, monthly feedback is gathered from social partners, and open communication with employees and managers is maintained to detect changes in employee well-being as soon as possible. The competitiveness of working and pay conditions in relation to the labour market is also monitored on a monthly basis.

All forms of employment termination are included in the turnover figure (terminations at the initiative of the employee and employer, retirement, death). The table presents the total number of employees who left the company in a certain period. The turnover rate is calculated as the ratio between the number of employees who left the company between 1 January and 31 December 2024, and the average number of employees under contract in the period between 1 January and 31 December 2024.

Employee Departures and Turnover Rate in 2024

Name of unit Number of employees who left the company Turnover rate
Petrol d.d., Ljubljana 343 14.09 %
PM managed in Slovenia 154 22.11 %
Petrol Geo d.o.o. 1 7.06 %
Petrol Pay d.o.o.

22.22 %

E 3, d.o.o. 11 25.14 %
Geoplin d.o.o., Ljubljana 8 21.52 %
Atet d.o.o. 4 13.26 %
Petrol d.o.o. (Zagreb) 614 32.45 %
Adria-plin d.o.o. 13 51.32 %
Vjetroelektrana Ljubač d.o.o. 0 0.00 %
Geoplin d.o.o. Zagreb 0 0.00 %
Zagorski Metalac d.o.o. 0 0.00 %
Atet d.o.o., Zagreb 0 0.00 %
Petrol BH Oil Company d.o.o. 106 35.00 %
Petrol power d.o.o., Sarajevo 0 0.00 %
Petrol hidroenergija d.o.o., Teslić 0 0.00 %
Petrol d.o.o., Beograd 115 67.88 %
Beogas d.o.o., Beograd 3 8.43 %
Petrol KU 2021 d.o.o., Beograd 1 27.91 %
Petrol LPG d.o.o. 7 17.39 %
Petrol LPG HIB d.o.o. 3 60.00 %
Petrol Crna Gora MNE d.o.o. 40 27.71 %
Petrol-Trade H.m.b.H. 0 0.00 %
Petrol Group 1,428.00 24.03 %

No significant methodological assumptions or estimates were used in the data disclosures and calculations, and the data has not been validated by an external body.

S1-8 – Collective bargaining coverage and social dialogue

Corporate collective agreements have been concluded in Petrol d.d., Ljubljana, managed service stations, Petrol Geo d.o.o., E 3, d.o.o. and Petrol d.o.o. (Zagreb). Altogether, these companies cover 85% of all employees within the Petrol Group. In other Group companies, employee rights are governed by internal rules, with some also covered by sectoral collective agreements.

There are no employees outside the European Economic Area (EEA) who are covered by company-level collective agreements or social dialogue arrangements. In the reporting that follows (in tables), only the proportion of employees covered by corporate-level collective agreements is included. No significant methodological assumptions or estimates were used, and the data has not been validated by an external body.

S1-8, paragraphs 60 a-c, 63 a-b, AR 70

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Employees covered by a company collective agreement, by country

Country % of employees with a company collective agreement
SLO 97
CRO 97

In Petrol d.d., Ljubljana, Geoplin d.o.o, Petrol d.o.o. (Zagreb), and Zagorski Metalac d.o.o., workers’ representatives are in place to represent employees in these companies. Together, these companies account for 86% of all employees within the Petrol Group. No agreement has been concluded with employees regarding representation in the European Works Council (EWC), a works council of the Societas Europaea (SE) or a works council of the Societas Cooperativa Europaea (SCE).

Employees covered by workers’ representatives, by country

Country % of employees with workers’ representatives
SLO 97
CRO 98

S1-10 – Adequate wages

In the Petrol Group, all employees receive appropriate and adequate pay, in compliance with the legislation of their country of employment. Adequate wages are never below the minimum wage set by law in each respective country or through collective bargaining. The metrics have not been validated by an external body.

S1-14 – Health and safety metrics

The occupational health and safety management system in the Petrol Group is based on legal requirements and applies to all employees in the Group. Due to the diversity of the portfolio, supplier and partner structure, and varying levels of operational control in individual Group companies, a unified system for monitoring and reporting safety indicators for our own employees and external workers at all locations is currently not in place. Data at this stage cover larger companies and managed points of sale, while for other entities, monitoring and centralised reporting are either not yet fully implemented or still under development.

We are actively working to expand monitoring and reporting to the remaining companies in the Group, taking into account the regulatory requirements of individual markets and continuing to introduce mechanisms to ensure consistent data tracking and verification across the Group. We also aim to further strengthen occupational health and safety monitoring systems, including improvements to the processes for verifying external contractors’ compliance with Petrol's safety standards and policies.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Number and rate of recorded workplace accidents at one’s own workplace

(the rate is expressed as the number of cases per 1,000,000 working hours)

Group company Number of recorded workplace accidents Number of accidents on the way to/from work Recorded workplace accident rate (per 1,000,000 working hours)
Petrol d.d., Ljubljana, and managed points of sale 34 / 6.3
Petrol d.o.o. (Zagreb) 33 6 10.7 (including accidents on the way to/from work) 8.7 (excluding accidents on the way to/from work)
E 3, d.o.o. 0 / 0
Geoplin d.o.o., Ljubljana 0 / 0
Total 67 6 8.5 (including accidents on the way to/from work) 7.5 (excluding accidents on the way to/from work)

The data is based on centralised occupational health and safety reports maintained by individual companies, in accordance with internal safety policies and national regulations. The rate of recorded workplace accidents is calculated following the ESRS methodology, whereby the number of reported work-related accidents is divided by the total number of hours worked and multiplied by a factor of 1,000,000. This ensures comparability across the industry, regardless of company size.

The data includes officially recorded workplace accidents for key entities of the Petrol Group, namely Petrol d.d., Ljubljana, and its managed service stations, Petrol d.o.o. (Zagreb), E 3, d.o.o. and Geoplin d.o.o., Ljubljana. The metrics have not been verified by an external body.

The calculation for Petrol d.o.o. (Zagreb), takes into account two separate indicators:

  • one including accidents on the way to/from work,
  • one limited to work-specific incidents.

In the key companies of the Petrol Group, 67 workplace accidents involving own employees were recorded during the reporting period, 6 of which were related to commuting. No fatalities occurred as a result of workplace accidents or work-related illnesses — either among Petrol’s own employees, external contractors, or other workers present at Petrol locations.

The Petrol Group is committed to further harmonising its occupational health and safety reporting systems, including:

  • more comprehensive data coverage across the Group,
  • alignment of incident reporting methodologies across all business locations,
  • more accurate recording of working hours in all subsidiaries,
  • broader integration of preventive actions to improve safety and reduce risks,
  • enhancement of systems for monitoring and analysing safety trends.

These efforts will support a deeper understanding of risks and enable targeted improvements in working conditions across the Petrol Group.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

S1-16 – Remuneration metrics (pay gap and total remuneration)

The gender pay gap, defined as the difference in average pay levels between women and men, expressed as a percentage of the average pay level of men, amounted to 21.6% for the Petrol Group in 2024, based on the basic gross salaries of full-time employees. The calculation includes all employees, regardless of country of employment, job complexity, industry characteristics, or other factors that directly affect gross salary.

The gender pay gap in the Petrol Group is influenced by several factors:

  • Geographical differences: Operating in multiple countries results in varying wage levels, adapted to local economic conditions and established pay standards. The pay gap within the Group may be affected by the differing gender ratios across countries. When accounting for these geographical differences, the gender pay gap shifts — as reflected in the table showing the gender pay gap by country where Petrol has the highest presence. A higher proportion of women employed in countries with lower average wages further contributes to the Group-wide gender pay gap.

Gender pay gap in the Petrol Group in Slovenia and Croatia

Country Gender pay gap (%)
Croatia 13
Slovenia 19
Total in all markets 22

Activities carried out by the company: Certain activities typically involve a higher proportion of either men or women in specific roles — for example, technical and maintenance roles — which influences the pay gap. The Petrol Group operates across several different business areas, meaning that the wage gap is also affected by the nature of activities performed by various companies and employees.

Job complexity: An analysis of the pay gap that considers job complexity, expressed in terms of pay grade, shows that the gender pay gap increases with job complexity. In the highest pay grade — where the gap is widest — the proportion of women in specific professional or managerial roles has a significant impact.

Gender pay gap by job complexity or salary bracket

Salary bracket Gender pay gap (%) Share of employees in the sample considered (%)
II 13 1
III -1 1
IV 0 45
V 4 18
VI 0 8
VII

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

1. Introduction

For the purposes of this data point, the Petrol Group includes the following companies: those under limited consolidation – Petrol d.d., Ljubljana, E 3, d.o.o., Geoplin d.o.o., Ljubljana, and Petrol Geo d.o.o. – and, additionally, Petrol Pay d.o.o. and Petrol d.o.o., Zagreb.

2. Remuneration

The median annual total remuneration of employees in the Petrol Group represents 10% of the annual total remuneration of the highest-paid individual in the company. In calculating annual remuneration, gross salaries, severance pay, jubilee payments, compensation, reimbursements, annual bonuses, business performance bonuses, and net reimbursements for meals, transportation, mandatory health contributions, and benefits are included. The metrics have not been verified by an external body.

3. Affected Communities

ESRS 2 SBM-2 – Interests and views of stakeholders

In the Petrol Group, the affected communities include the surrounding residents or users of the facilities, located in the impact area of higher and lower risk establishments (SEVESO facilities) owned and/or managed by the Petrol Group. Higher and lower risk establishments include petroleum product storage facilities (PDSF) and liquefied petroleum gas storage facilities (LPGSF).

In Slovenia, the risk establishments include the PDSF Terminal Instalacija Sermin in the Municipality of Koper, PDSF Zalog in the Municipality of Ljubljana, PDSF Celje in the Municipality of Celje, PDSF Rače in the Municipality of Rače-Fram, PDSF Lendava in the Municipality of Lendava, LPGSF Sežana in the Municipality of Sežana and LPGSF Štore in the Municipality of Celje and the Municipality of Štore. In Croatia, these are the LPGSF: Sv. Križ-Začretje, Divoš, Unešić, Kukuljanovo and Banići, and in Serbia the LPGSF Smederevo.

A material interest of the affected communities is to reside in an environment safe from the consequences of major accidents in high-risk establishments.

ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model

Activities within our own oil and petroleum products value chain, and the related impacts on affected communities, are key to our strategy and business model. Potential impacts on affected communities relate to safety risks arising from potential major accidents at high-risk establishments. High-risk establishments and affected communities exposed to potential impacts are disclosed in ESRS 2 SBM-2 – Interests and views of stakeholders.

As part of our own operations, affected communities and facilities are located within the impact zones of potential major accidents that could occur at the high-risk establishments. The extent of these zones depends on the location of the accident, the configuration of the surrounding terrain, and the proximity of nearby buildings. All potential major accidents at high-risk establishments are related to petroleum products and liquefied petroleum gas (LPG). The Petrol Group is a distributor of petroleum and related products as finished products in the wholesale sector (B2B, B2G) in the SEE and other European markets, and in the retail sector (B2C) in Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, and Serbia.

We are also aware of the environmental impacts of upstream and midstream activities in the oil and petroleum products value chain, which we have no direct influence over. The other main value chains in the Petrol Group do not pose risks related to the possibility of major accidents for surrounding residents.

At present, Petrol has no strategic plans to construct.

new storage facilities. Therefore, potential additional impacts on affected communities have not been assessed.

Based on the legislation (Regulation on Criteria for Determining the Minimum Distance Between an Establishment and Areas Where a Large Number of People Are Present, and Infrastructure), certain facilities or affected communities are classified as more vulnerable in terms of exposure to the risk of damage. Among the most vulnerable are facilities such as schools, kindergartens, healthcare, and sports facilities, while industrial facilities, pipelines, and communication networks are considered less vulnerable. Based on the vulnerability classes of the facilities, we have also defined our impact areas for potential major accidents.

We collaborate with local communities (municipalities) and other spatial planners to ensure the appropriate use of land around our existing storage facilities, especially within the impact zones of potential major accidents at our sites.

In 2024, no major accidents occurred at SEVESO establishments owned or managed by the Petrol Group. No positive impacts and opportunities in this area have been recognised.

In 2024, no major accidents occurred at SEVESO establishments owned or managed by the Petrol Group.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Public

S3-1 – Policies related to affected communities

Policies related to affected communities are set out in Petrol's safety guideline (Major Accident Prevention Plan) and in the Rules on Action, Handling and Conduct at Warehouses and Terminals (RAHC). They apply to all SEVESO establishments. Petrol's safety guidelines are presented in more detail in section E2-1 – Policies related to pollution.

Respect for the human rights of affected communities

Petrol d.d., Ljubljana is firmly committed to respecting the human rights of affected communities, including ensuring special attention to the needs and rights of indigenous peoples when they are included in the Company's scope of impact. This is reflected in our policies, internal regulations, cooperation with affected communities, and mechanisms used to eliminate potential negative impacts. In doing so, we adhere to high standards of corporate integrity and respect international guidelines, such as the UN Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises, to the greatest extent possible.

We engage in dialogue with affected communities to better understand their needs and expectations and to respond with responsible practices. We pay particular attention to projects that incorporate environmental and social aspects, thereby reducing potential negative impacts on affected communities. We cooperate with affected communities through numerous initiatives in the field of sport, culture, humanitarian efforts, and environmental activities. Mechanisms are in place to address potential negative impacts on human rights. As part of our sustainability management system, we monitor the effects of our operations on society and the environment and implement measures to mitigate potential risks.

We implement mechanisms to prevent human rights violations, including social impact assessments, transparent communication with communities, and accessible channels for reporting potential violations. We are committed to ensuring appropriate remedial actions in cases where negative impacts occur, thereby ensuring full alignment with our sustainable business principles.

Although we operate in regions where indigenous people are not directly involved in our impact area, we nevertheless implement preventive measures that include an analysis and assessment of impacts on potentially vulnerable groups. More information about cooperation with communities is disclosed in section S3-2 – Processes for engaging with affected communities about impacts. More information about the provision and/or facilitation of a remedial action for impacts on the human rights of affected communities is disclosed in section S3-3 – Processes to remediate negative impacts and channels for affected communities to raise concerns.

We engage in dialogue with affected communities to better understand their needs and expectations and to respond with responsible practices.

Compliance with international standards

The spatial planning around SEVESO establishments is aligned with the guidelines of the SEVESO Directives to ensure an acceptable level of risk to affected communities located in the vicinity of the establishments. Within our own activities, whether upstream or downstream of the Petrol Group's value chain, no cases of non-compliance with the United Nations Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, or the OECD Guidelines for Multinational Enterprises involving affected communities have been identified.

S3-2 – Processes for engaging with affected communities about impacts

Based on the views of affected communities (the interested public), Petrol d.d., Ljubljana, makes decisions or carries out activities to manage actual and potential impacts only in cases where public hearings are required for changes to an individual location owned or managed by the Company, in accordance with the requirements of the current Environmental Protection Act or related legislation. In such cases, consultations are held with affected communities or the interested public. No public hearing was held in 2024.

Cooperation with affected communities in the event of a major change to a SEVESO establishment, within the framework of public proceedings, is led by the Ministry of the Environment, Climate and Energy (MOPE). Persons permitted by law to participate in public proceedings may include residents of endangered areas (areas covered by major accident scenarios at the establishment) and NGOs with an appropriate status.

The cooperation takes place in the period between the submission of a complete application for an amendment to the environmental permit for the establishment, which is carried out by Petrol d.d., Ljubljana, and the issuance of the amendment to the environmental permit, which is issued by the Ministry of the Environment, Climate and Energy (MOPE). During this time, a period of public consultation is also foreseen, as further defined in the applicable Environmental Protection Act.

The Management Board of the Company is responsible for implementing cooperation at the highest level, ensuring that the Company's approach is shaped based on results and that operations are conducted in compliance with the law. According to the authorisation system, the Management Board delegates the responsibility for the implementation of individual activities to the directors of the relevant organisational units.

The effectiveness of cooperation with the broader public of the affected communities has not been assessed yet, as Petrol d.d., Ljubljana, has not been included in the public hearing since the Republic of Slovenia's accession to the EU and the implementation of the SEVESO directives into legislation in 2010.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

1. Introduction

Managed by Petrol d.d., Ljubljana, was still an independent company, Instalacija d.o.o.

2. Management Responsibility

The Management Board of the Company is responsible for implementing cooperation at the highest level.

3. Processes to Remediate Negative Impacts

If a major accident occurs, the Protection and Rescue Plan is used as the first response. Remediation of potential consequences (remediation of environmental damage) is carried out in accordance with the requirements of the competent ministry.

3.1 Communication Channels for Affected Communities

Various channels are available for affected communities to directly communicate their concerns or needs, such as Petrol's external, independent whistleblower line, Speak Up (Spregovori), the [email protected] email address, which is managed by an independent external consultant and allows for complete anonymity of the whistleblower. The hotline and designated telephone number are also available to all representative offices in the Petrol Group.

Affected communities can also write to the following e-mail addresses:
[email protected],
[email protected],
[email protected],
[email protected]
or in writing to the following address: Petrol d.d., Dunajska cesta 50, 1000 Ljubljana with the note “To be handed to the trustee”.

More information on the availability of the “Speak Up” channel is disclosed in standard S1-3, in the section Processes to remediate negative impacts and channels for own workforce to raise concerns.

3.2 Availability of Reporting Channels

The “Speak Up” reporting channels are publicly available to affected communities in the footers of the landing pages of Petrol's web pages in Slovenia, Croatia, Bosnia and Herzegovina, Serbia, and Montenegro. The availability and accessibility of other reporting channels for affected communities is ensured by Petrol employees working in the IT department. Although the familiarity of affected communities with structures and procedures is not separately assessed, all channels are publicly accessible on the Group's websites, and partial insight can be obtained through the analysis of website traffic.

3.3 Protection of Whistleblowers

Within the framework of the Rules on the Protection of Whistleblowers in the Petrol Group, a system has been established for the Slovenian company – Petrol d.d., Ljubljana – to protect individuals from retaliatory measures when using the aforementioned channels. In other countries, the Rules are in process of being adopted.

The issues raised and addressed through these channels are monitored and controlled in accordance with sectoral legislation and are appropriately recorded.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

S3-4 – Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions

As part of the action plan aimed at managing material impacts and risks, all investments in SEVESO establishments are managed in a way that increases operational safety. All maintenance work is intended to ensure the proper functioning of technological equipment, especially containment systems (tanks, pipelines, catchment basins, etc.). All statutory requirements are met, technical standards are followed, and the best available technologies introduced. The main resources for ensuring the action plan are, in addition to financial resources used for investments and maintenance, trained employees who ensure the safe implementation of processes within the establishment.

Each high-risk establishment has a so-called Blue Book drafted for the purpose of carrying out maintenance work, which specifies the frequency and scope of preventive inspections and maintenance (e.g. weekly visual inspections of key technological equipment, annual inspections of containment systems). These inspections are carried out by the warehouse maintenance department. Security services and fire-fighters conduct warehouse rounds several times a day to visually inspect the equipment and check for possible leaks.

Professional fire brigades responsible for specific areas, as well as local volunteer fire departments, are also invited to regular annual protection and rescue exercises in high-risk establishments. These units occasionally take part in the exercises.

For each SEVESO establishment, a Safety Report (for major risk sources) or an Environmental Risk Reduction Plan (for minor risk sources) has been developed, outlining major accident scenarios and the measures for their prevention. A protection and rescue plan has also been developed for each SEVESO establishment, which clearly defines actions to be taken in the event of a major accident. Spatial planning in the vicinity of SEVESO establishments ensures that there are no vulnerable facilities (kindergartens, hospitals, residential buildings, etc.) within the direct impact area of major accident scenarios. As a result, direct impacts of major accidents on affected communities are not possible.

Actions that are necessary and appropriate in response to individual actual or potential negative impacts on affected communities are planned as part of the major disaster risk assessment process, dividing them into major accident prevention actions and actions to reduce their impacts. All major accident prevention actions are planned based on anticipated failures that could occur in the establishment and are implemented on an ongoing basis. Actions to reduce the impacts of major accidents (which would be implemented in the event of an accident) are planned based on the consequences of anticipated accidents.

Hazards that may cause major accidents during operation, maintenance, major changes to the establishment, possible construction within the establishment area, or during its potential decommissioning are systematically identified. A qualitative risk assessment is performed for major accidents involving hazardous substances for all identified hazards.

A dialogue with affected communities has been established, social impact assessments are implemented, and reporting channels for perceived violations or any issues by affected communities are provided for. More information about this is provided in S3-3, in the section on processes to remediate negative impacts and channels for affected communities to raise concerns. No serious human rights issues or incidents related to affected communities within the Petrol Group have been recorded.

Managing risks to the environment and the health and property of surrounding residents includes investments in SEVESO establishments. In 2024, the Petrol Group allocated EUR 2,843,580.

for investments and maintenance of SEVESO establishments. The adequacy of containment systems was ensured, fuel transfer technologies were updated, and active fire protection systems were overhauled.

No opportunities related to the affected communities in the vicinity of the high-risk establishments were identified.

S3-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

Our main objective is to operate SEVESO establishments accident-free. Affected communities have not participated in setting this objective of the Petrol Group so far, as accident-free operation forms part of the Group's strategy and interest, and therefore no coordination of this objective was required.

To achieve this objective, various actions are implemented for each SEVESO establishment. These are presented to the affected public in public information published on the Petrol Group's website. This document serves as a key communication tool with potentially affected communities. Where necessary, the affected public is also informed of any changes through local community representatives or public consultations. More information about the investments and investment maintenance of SEVESO establishments are included in the financial statements under investments in fixed assets.

Public engagement of affected communities is disclosed in section S3-2 – Processes for engaging with affected communities about impacts.

S4 CONSUMERS AND END-USERS

ESRS 2 SBM-2 – Interests and views of stakeholders

The strategic management of relationships with consumers and end-users is presented in ESRS 2 SMB-2. We strive to ensure that, by appropriately addressing the interests and views of consumers and end-users across all markets where we operate, we provide them with tailored, reliable services and affordable products in our activities.

In the oil and petroleum products supply market, the interests of all consumer groups and end-users across all markets focus on a reliable and uninterrupted supply at acceptable prices. The Petrol Group ensures that supply is available in strategic locations, enabling broad accessibility for various user groups. Customers are provided with accurate and timely information about our products and services through multiple communication channels, including points of sale, advertising, Petrol Group websites, email, the contact centre, and social media.

For environmentally conscious consumers seeking sustainable solutions, we have developed fuels with added bio-components, such as Q Max HVO (hydrotreated vegetable oil-based diesel fuel), which reduce emissions and contribute to sustainability objectives. Electric vehicle users have similar expectations to users of vehicles with internal combustion engines – they expect reliable charging infrastructure installed in strategic locations, which we provide through continuous upgrades to charging station network.

Ensuring a reliable and competitive supply of all types of energy commodities is a key priority of the Petrol Group. An uninterrupted supply of electricity at competitive prices is ensured to consumers and end-users (B2C, B2B) in the Slovenian market and end-users (B2B) in the Croatian market, Serbia, and Bosnia and Herzegovina. We also promote the use of

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model

In the field of natural gas, where we are a distributor in Slovenia and Croatia, the key interest of consumers and end-users is an uninterrupted and secure supply. To support this, we are introducing technologies that increase efficiency and a lower carbon footprint, aligning also with the interests of environmentally conscious consumers.

In all markets where we operate, customers are offered a wide range of products and services, accessible through a network of physical points of sale and service stations, strategically located to ensure maximum accessibility. In Slovenia, an online store is also available, enabling customers to purchase products easily from the comfort of their homes. By optimising the opening hours of retail stores, we improve the accessibility of products and services and respond to the needs and expectations of consumers. In addition, we continuously enhance services such as contactless payments, digitalised experiences, and personalised shopping processes to provide users with the best possible user experience.

Consumers and end-users, whom the Petrol Group can materially impact, are diverse across all markets in which the Group operates, due to the wide range of its activities. These include natural persons who are household customers or consumers, companies or business users, public institutions and local communities. Each of these groups has distinct interests, which we assess and meaningfully take into account in our strategy and development of our business model.

Freedom of expression, access to (quality) information, health and safety, personal security, access to products and services, and responsible market practices have been identified as material impacts on consumers and end-users as part of the double materiality assessment. These areas are recognized as positive impacts, and no material risks or opportunities were identified.

Impacts (negative and positive) and opportunities for consumers and end-users are also present in other areas such as climate change mitigation, energy, water pollution, substances of concern, water consumption and resource flows, including resource use and waste. These impacts are addressed within the framework of environmental standards (E1, E2, E3 and E5).

One of the Petrol Group's key priorities across all markets is ensuring the health of our customers and other users of our facilities, goods and services. We actively seek and introduce solutions that enhance consumer and end-user safety, including with regard to personal data protection, which is one of our top priorities. We are increasing the accessibility of our services and products and ensure that important information is communicated regularly. This information is always available to consumers and end-users via our websites and the Group's mobile applications in Slovenia and Croatia, as well as by email and regular post. By providing multiple communication channels, we enable them to freely express their questions, concerns, or suggestions.

Legal guidelines and sustainability standards are followed in all markets where we operate, and consumers and end-users are provided with all necessary and relevant information regarding products and services to avoid potential harmful use.

Positive impacts

At the Petrol Group, a wide range of products and services in an extensive retail network in the region ensures accessibility of products and services to all consumers and end-users. Accessibility is also facilitated for vulnerable groups, such as persons with disabilities, through adjustments (e.g., adjusted width of entrances to service stations and wheelchair accessible restrooms). Accessibility is also expanded with online applications and a "call me" function, which enables support for elderly people to be assisted with fuelling and other services.

A comprehensive customer privacy protection system has also been established in all markets where we operate. Personal data of our customers is handled responsibly, carefully and in accordance with applicable legislation, human rights standards, and the Company's internal regulations.

S4.SBM-3, paragraphs 10 a-c, 11, 12

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

A comprehensive, integrated and diversified communication system that includes all relevant stakeholders enables access to all aspects of information for empowered decision-making by consumers and end-users.

We are members of the Slovenian Advertising Chamber and follow the responsible marketing practices guidelines and sustainable advertising standards in our operations, having joined as signatories of a pledge to their implementation.

Consumers and end-users across all markets are informed about all sustainable solutions and initiatives available in the Petrol Group through various marketing activities - including articles in major media, social media, content on the Petrol Group's websites, email, and mobile applications. In this way, we actively engage them in our activities and enable them to freely express their opinions, ideas and questions through various channels (e.g. contact centre, points of sale, social networks, email, etc.).

An integrated system to ensure customer health and safety has been established in all markets, under which product compliance with legislation and other standards is ensured. Preventive maintenance programmes are carried out for our service equipment to ensure safe use for our customers. Protocolised sales processes with all the necessary equipment have also been established to provide the best possible user experience and traceability of sales processes.

Consumers and end-users with specific characteristics

In all markets, we strive—through various analyses, stakeholder engagement, and adaptation of our practices—to understand and reduce the risk of harm to consumers and end-users with specific characteristics, such as persons with disabilities and people with medical contraindications to certain types of food. Our understanding of these groups and their needs is based on the identification, analysis and management of these risks using structured methodologies, analyses, stakeholder engagement, and the implementation of safeguards. No material risks and opportunities associated with this group have been identified.

S4-1 – Policies related to consumers and end-users

In accordance with the Code of Conduct of the Petrol Group, we are committed to maintaining an ethical relationship with all business partners, consumers, and end-users. The internal Code of Conduct defines the fundamental principles of business conduct, including the respect for human rights, ethical behaviour, and environmental responsibility. It serves as the foundation for our interactions with all stakeholders and throughout the entire value chain, including our approach to consumers and end-users. This includes safeguarding freedom of expression, ensuring access to quality information, and making sure our products and services comply with legislation and are safe for the health of our consumers and end-users. The Code also binds us to act responsibly in our marketing practices. It applies to all companies within the Petrol Group and across all markets in which we operate, serving as a framework for setting and strengthening business standards across the Group and in cooperation with business partners throughout Petrol’s value chains.

S4.MDR-P, paragraph 15, S4-1, paragraphs 16 a-c, 17

In accordance with our Privacy Policy, we have established a comprehensive system for the protection of consumer and end-user privacy across all value chains in which we operate and, in all markets, where we are present. We handle our customers’ personal data responsibly and carefully, in compliance with applicable legislation, human rights standards, and the internal regulations of the Company. In line with our publicly available Privacy Policy, which is accessible on the Petrol website, we inform consumers and end-users about their rights and how they can exercise them, as well as about the purposes for which we process the personal data they provide and to which they have consented.

Business processes, tasks, responsibilities and key performance indicators related to the

Petrol Group's Strategy

Petrol Group's strategy and related to consumers and end-users are defined in the internal regulation on Managing Marketing Processes. We are also signatories to the pledge to implement sustainable advertising standards adopted by the Slovenian Advertising Chamber. The competent executive function pertaining to marketing and digital sales, retail and wholesale, customer support and corporate communications is responsible for ensuring the implementation of policies, as authorised by the management of the company.

Respect for the Human Rights of Consumers and End-Users

All rights guaranteed by the constitution and laws, as well as all international human rights documents are respected, and we act in compliance with the UN Guiding Principles on Business and Human Rights, The ILO176 Declaration on Fundamental Principles and Rights at Work, and The OECD177 Guidelines for Multinational Enterprises. No cases of non-compliance with these principles have been identified in the Petrol Group.

Accordingly, there are several internal regulations in place that define the rights and responsibilities of employees also in relation to consumers and end-users, including personal data protection. Personal data is handled responsibly, carefully and in accordance with applicable legislation and the Company's internal regulations. In addition to the personal data processed pursuant to the law, only personal data truly needed to provide quality products and services to consumers or end-users are processed. When providing data, an individual who gives consent to the processing of personal data for the purposes of direct marketing, compilation of customised offers or invitations to market research is informed about the specific purpose of their use and all rights they have in compliance with applicable law.

Legal obligations regarding the accessibility of products and services for persons with disabilities are also fulfilled, with digital channels and the built environment adapted to their needs.

Cooperation with Consumers and End-Users

We engage with consumers and end-users through various communication channels and platforms, available to them every day of the year. The Customer Support and Sales Contact Centre organisational unit serves both private and corporate customers, by providing a wide variety of information about Petrol's offerings. It also handles contractual relationships, prepares offers, receives orders, provides technical support, and resolves complaints. The main contact centre, located in Slovenia, also manages support for Croatia, while other companies within the Petrol Group operate their own local contact centres. The most popular communication channels remain telephone and email, while customers are increasingly contacting us via online chat, chatbot, mobile applications and video calls.

Remedial Action

A unified reporting system has been established for suspected serious violations, which anyone can report if they believe their rights have been violated or if they notice any other irregularities. There are designated reporting channels for consumers and end-users, which are also accessible to employees and affected communities. More information about this is...

176 ILO – International Labour Organization

177 OECD - The Organisation for Economic Co-operation and Development

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

provided in S1-3 and S3-3, in the section on processes to remediate negative impacts and channels for individual stakeholders to raise concerns. Any complaints received are analysed and identified deficiencies are addressed promptly.

A unified complaint capturing and management has been established, which includes all communication platforms. This ensures efficient and consumer- and end-user-friendly handling of various complaints. This allows us to provide them with a comprehensive service pertaining to enforcing legal remedies and rights that concern them.

S4-2 – Processes for engaging with consumers and end-users about impacts

Consumer feedback and views provide us with valuable insights into how to manage our actual or potential impacts on them. Feedback is obtained both directly from consumers and end users, as well as through representatives of consumer organisations, local communities, and other organisations that represent their interests and communicate their insights and needs.

Direct input is obtained through market research, our own research (pNPS, tNPS, Petrol online panel), within the contact centre, through digital channels, and via feedback from sales staff at service stations.

Information is monitored at all points of contact and in all interaction phases, with all types of consumers and end-users (including vulnerable groups), and in all areas of our operations. In this way, customer needs and expectations are identified and responded to and are taken into account when developing business decisions and sustainability initiatives. Feedback is also sought at all stages of our product development, from design to customisation and upgrades.

Both during the development phase and after the launch of products, services, and digital solutions, user testing is conducted to obtain feedback and guidelines for adjustments and upgrades. Advertising materials are also tested with the aim of optimising creative solutions and messages, all with the aim of increasing efficiency and adapting to the appropriate target groups of consumers and end-users.

The competent executive function pertaining to marketing and digital sales, retail and wholesale, customer support and corporate communications is responsible for ensuring cooperation, as authorised by the management of the company.

Effectiveness of engagement with consumers and end-users is systematically and continuously monitored through surveys, research, and data analysis. Annual customer satisfaction surveys are conducted, and systematic feedback analysis is used to identify areas for improvement. The use of our digital solutions — such as the website and mobile applications (e.g. Petrol GO) — is analysed, and key performance indicators are tracked (e.g. number of users, frequency of use, and the most frequently used functionalities).

We continuously build customer trust through comprehensive procedures and communication channels that enable them to directly express their (dis)satisfaction, while also ensuring high-quality feedback — especially when it includes suggestions for potential remedial actions.

S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns

Potential negative impacts on consumers and end-users are monitored and analysed through customer satisfaction monitoring processes, complaints, the call centre, and other feedback. As far as handling claims and complaints is concerned, a system has been established that enables systematic and process-efficient management, including keeping customers informed.

in real time about the handling progress of their respective claim or complaint.

S4-3, paragraphs 25 a-d, 26

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Great emphasis is placed on continuously improving the user experience, which is centred around the customer and end-user, with a focus on understanding their needs, expectations, desires, motivators, and behaviours. The user experience is monitored using NPS indicators at various points of contact (service stations, online store, contact centre, mobile application) and in various products (electricity, energy solutions, e-mobility, KOEL). These indicators help us detect negative market reactions and take action accordingly, if necessary.

The identification of significant negative impacts includes areas such as safety, accessibility of products and services, product quality, and environmental and health impacts. Affected stakeholders can report issues through digital channels, the call centre, or directly at the points of sale. Once a negative impact is identified, clear and timely communication is established with affected stakeholders. This allows customers to understand the actions taken to eliminate it and provides them with the necessary support in solving the issue at hand. The established channels ensure transparency, responsiveness, and allow users to contribute to improving our services.

Users can express their opinion via social networks, the Contact Centre, online forms (Your suggestions | Petrol and Tell Petrol | Petrol) and as part of the Petrol research panel. Messages via e-mail are forwarded to the appropriate departments within Petrol, which respond accordingly. The Contact Centre records customer interests through analytics and systems. Periodic assessments of communication channels are conducted, including measuring response times, analysing user satisfaction, and identification of potential gaps.

To monitor and control the issues addressed and ensure the effectiveness of the channels, a structured and transparent system that allows for the monitoring, control and evaluation of issues, needs and complaints expressed through various communication channels, is used.

NPS – Net Promoter Score

Great emphasis is placed on continuously improving the user experience.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Consumer and end-user awareness of these structures is monitored through email analytics (share of recipients who opened the e-mail), social media (number of views), and website metrics (reach, retention time). More information about concern-raising channels is disclosed in section S4-2 – Processes for engaging with consumers and end-users about impacts.

To ensure the full protection of individuals using our communication channels, clear rules and procedures that prevent any retaliation and encourage responsible and open communication have been established. A whistleblower protection policy has been adopted, and the Company also has a whistleblower protection officer. All concern-raising channels are designed to ensure the confidentiality of user data. Reports and feedback are handled discreetly, and only authorised persons have access thereto.

S4-4 – Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions


Actions are taken following an approach of preventive action, systematic management of potential risks, and implementation of actions that improve the quality of services, safety, and sustainability of our solutions. Through sustainability-oriented actions, infrastructure improvements, digitalisation, and support for vulnerable groups, we strive for long-term user satisfaction and strengthening trust in our services and solutions across all markets in which we operate.

The onset of negative impacts is monitored, and appropriate remedial actions are provided for when they occur. The approach to preventing, mitigating or eliminating negative impacts includes their identification and handling procedures — such as an issue reporting system — and ensuring that all remedial actions are carried out promptly, fairly and in accordance with best practices. More information about the provision and facilitation of remedies is disclosed in section S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns.

Actions for positive effects

We use mechanisms that support the launch of products and services tailored to the needs and expectations of consumers and end-users. Various product and service-related studies are conducted to gather feedback on appeal, suitability, usability, and other characteristics. In 2024, we introduced testing and optimisation of communication materials (advertisements, posters, brochures, etc.) using an AI-based platform. A/B testing is used to compare different versions of ads that vary in text, visuals, or target audience. Based on the results, ads that are more relevant to users and enhance campaign effectiveness are used in subsequent campaign phases. A/B testing results contribute to advertising optimisation by enabling the delivery of content tailored to user needs and interests. We also carry out various market research activities to gain insight into customer opinions and attitudes.

Modern technological solutions, such as the Petrol GO mobile application, enable contactless payment at points of sale, contributing to greater accessibility of petroleum products and improved user convenience. The supply is available to customers 24 hours a day, every day of the year.

New digital channels, an expanded range of energy commodities, and a personalised offering help us respond to customer preferences and market trends. The development of digital tools and platforms (e.g. the Moj Petrol application) provides consumers with a better overview of energy consumption, tailored advice for efficient energy use, and easy service management.

Our electricity customers are informed about the composition of primary electricity generation in our electricity offering via their electricity bills and the website, increasing transparency and user awareness.

Customers are offered goods and services that meet the requirements of sustainable business. With advanced biofuels as an alternative to fossil fuels in transport, by promoting e-mobility, and by investing in sustainable sources of electricity (such as wind power plants) — which simultaneously increase the share of renewable sources of electricity in customer consumption — we help reduce emissions and increase energy security. By responsibly selecting packaging for our products (using cardboard and PET packaging), we also reduce our environmental impact in the retail segment of our operations. A more detailed description of the impacts of climate change on consumers and end-users is provided in section E1.

How the efficiency of actions and initiatives is monitored and assessed is disclosed in section S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns.

Actions aimed at responding to negative impacts

The significant negative impacts identified in our relationship with consumers and end-users are related to areas that fall within the scope of environmental concerns and are therefore reported under the environmental standards (E1, E2, E3 and E5). Proactively identifying and preventing actual or potential negative impacts on consumers and end-users is part of our.

Sales Processes

If a potential negative impact is identified, it is analysed in terms of severity (how many users are affected and how important the impact is to their needs), duration (whether the impact is short-term or long-term), and remediation options (how quickly and effectively the issue can be resolved). Based on the analysis, tailored actions are developed. These may include technical improvements (e.g. expanding access to e-charging stations), the introduction of discounts on certain products or services, or additional user education on the safe and efficient use of energy commodities, etc.

PET – Polyethylene Terephthalate

New digital channels, an expanded range of energy commodities, and a personalised offering help us respond to customer preferences and market trends.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability Report

All general terms and conditions of various activities (e.g. collecting cents for young sports prodigies) intended for consumers and end-users are subject to review and approval by the Sustainable Development, Quality and Safety sector and the Legal Affairs sector, each of which, in their own field of expertise, ensures compliance of activities with applicable legislation and sustainable operating guidelines.

No significant negative impacts on consumers and end-users have been identified. Also, no serious human rights incidents related to consumers and end-users have been recorded. Consumers and end-users can report actual or potential negative impacts through various channels, which are presented in section S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns. This chapter also lists the procedures used to prevent the occurrence of material negative impacts.

Key measures to address negative impacts will be defined following the adoption of the new business strategy for the 2026–2030 period and will include concrete activities aimed at achieving the strategic objectives.

Resources Used for Managing Material Impacts

Resources include both financial and human capital and arise from operations and interactions with consumers and end-users. These resources are intended for the development and implementation of sustainable solutions. Our approach is based on structured planning, which includes identifying key impact areas, directing resources to projects with the greatest potential impact, and continuously monitoring and evaluating the effectiveness of resource use.

S4-5 – Targets Related to Managing Material Negative Impacts, Advancing Positive Impacts, and Managing Material Risks and Opportunities

The targets related to consumers and end-users refer to indicators of the strength of the Petrol brand (brand power, preference of service stations), customer satisfaction, social media indicators (growth in the number of followers on Facebook and Instagram, growth in organic reach per post, growth in engagement and growth in responses to direct messages on Facebook), the number of members of the Petrol Club loyalty programme, use of the Petrol GO mobile application (number of users in Slovenia and Croatia), use of the Petrol Group websites (time spent on the website, number of pages read, etc.), the Contact Centre, and indicators of interaction with our email communications, among others.

Objectives are set based on the Company's strategic direction, financial resources allocated for managing the individual area to which the objective relates, and the results of the previous measured period. The targets are defined in terms of content in the internal Managing Marketing Processes regulation. Objectives are set with reasonable consideration of feedback from consumers and end-users. More information about their engagement is disclosed in section S4-2– Processes for engaging with consumers and end-users about impacts.

S4.MDR-T, paragraph 40, 41 a-c

No significant negative impacts on consumers and end-users have been identified.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

G GOVERNANCE

G1 BUSINESS CONDUCT

ESRS 2 GOV 1 –The role of management and supervisory bodies

The operations and governance of the Petrol Group are based on a two-tier corporate governance system, which establishes a clear distinction of responsibilities between the Management Board (management body) and Supervisory Board (supervisory body). This structure ensures a transparent allocation of responsibilities and tasks across management and supervisory bodies, forming a solid foundation for responsible, sustainable and compliant operations.

The Management Board is responsible for decision-making, supported by the expertise and opinions of professional departments. It provides guidance and requirements for strategy development aimed at creating shareholder value, while also considering the interests of a broader range of relevant stakeholders — including environmental, social and governance (ESG) aspects. The Management Board works closely with senior managers in preparing strategic documents, guided by long-term objectives, key business challenges and emerging opportunities. Its tasks include setting frameworks and targets aligned with the Company's business ambitions and overseeing the implementation of strategies and operational activities. In doing so, the Management Board connects the company's vision with executive functions.

The Supervisory Board, as a non-executive body, monitors and oversees the work of the Management Board and ensures that business decisions are consistent with the approved strategy and legislation. Its responsibilities include reviewing and approving business plans, interim reports and strategic documents — including the sustainable development strategy — as well as approving major business projects and investments. As part of its role, the Supervisory Board also appoints special committees that, among other matters, examine sustainability issues in greater depth and provide expert support and recommendations to the Supervisory Board.

At the Shareholders' General Meeting, key strategic decisions are made — including the approval of annual reports, the appointment of the Supervisory Board and the resolution of other important issues — ensuring transparent governance of the company.

Sustainability aspects are increasingly embedded in the company’s business strategy and objectives. Through coordinated approaches, the management and supervisory bodies ensure that the Petrol Group effectively manages material impacts, risks, and opportunities.

To ensure effective business management and compliance with relevant standards and legislation, the General Meeting, management, and supervisory bodies consistently uphold a high level of professional expertise. These bodies include experts with backgrounds in the financial sector, energy, law, logistics, and management, enabling the Petrol Group to benefit from professional complementarity and remain agile in responding to market trends and changes in the business environment. This interdisciplinary expertise supports not only regulatory and market compliance, but also the ability to seize opportunities arising from the sustainable transition.

In line with the recommendations of the Slovenian Corporate Governance Code for Listed Companies, the Petrol Group ensures that all members of the management and supervisory bodies are appropriately qualified and regularly informed about relevant legislative and market.

developments. In the coming period, particular emphasis will be placed on building expertise in sustainability and ESG governance, which members consider in the context of the company’s strategic direction.

Members of the Supervisory Board and other governance bodies actively participate in training programmes and workshops on corporate governance, sustainable development and relevant regulatory changes — ensuring continuous professional development. Their skills and expertise are demonstrated through participation in conferences and panel discussions, where they contribute as experts on key governance challenges in the energy sector and the broader economy.

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ESRS 2 IRO-1– Description of the processes to identify and assess material impacts, risks and opportunities

Processes for identifying and assessing material impacts, risks and opportunities related to business conduct are disclosed under the general disclosures in ESRS 2 IRO 1.

G1-1– Business conduct policies and corporate culture

The Petrol Group operates in accordance with internal regulations that govern key aspects of business conduct and corporate culture, ensuring responsible and ethical operations across all levels of the organisation. The Management Board and executives at the B-1 level are responsible for implementing the policies, monitoring their application, and ensuring compliance with regulatory requirements. All employees are responsible for their consistent application.

The internal rules on the prevention and mitigation of mobbing allow employees to report suspected mobbing or other violations of their workplace rights in a safe and confidential manner and set out appropriate procedures for handling such cases. The Petrol Group also follows internal rules on whistleblower protection, enabling employees to report breaches of regulations encountered in the work environment and ensuring proper handling of such reports. These rules also safeguard whistleblowers, including individuals who disclose violations either internally or publicly.

In addition, the Petrol Group has adopted Anti-Corruption Rules, which define measures and methods to prevent corruption and introduce business practices that minimise the risk of decision-making powers being exercised in violation of external or internal regulations and ethical standards.

Corporate values serve as the foundation for building the corporate culture and long-term business strategy. Sustainability values — including emission reduction targets, the transition to renewable energy sources, and the development of innovative sustainable solutions — form part of Petrol’s strategic focus. Pursuing these priorities enables us not only to meet stakeholder expectations, but also to make a meaningful contribution to the sustainable development and long-term resilience of the Petrol Group.

Code of Conduct

We feel a special responsibility toward our employees, customers, suppliers, business partners, owners, and society at large. We meet their expectations through motivated and entrepreneurially minded employees, while respecting the fundamental legal and moral principles of Slovenian society and broader European standards and ensuring environmental protection.

The Petrol Group Code of Conduct

The Energy of Our Conduct, clearly defines the core values, which are embedded in our daily processes and decisions. It places particular emphasis on encouraging responsible behaviour among employees and fostering a work environment grounded in respect and ethics.

Our values are:

  • Respect: We respect people and the environment.
  • Trust: We build partnerships based on honesty.
  • Excellence: We strive to be the best in everything we do.
  • Creativity: We drive progress through our ideas.
  • Valour: We work with dedication and courage.

The Petrol Code is a set of rules, standards of conduct and expected behaviours. It serves as a practical tool for day-to-day decision-making and helps employees avoid situations that could lead to legal violations, cause damage, or otherwise negatively affect the reputation of the Petrol Group. The Code is adapted to the realities of the time we live in — its purpose is not to prohibit and sanction, but to suggest and advise. It has also been endorsed by the Petrol Group Workers' Trade Union and the Workers’ Council, adding further weight and significance. The standards set out in the Code are already in force across the Petrol Group and are applied consistently.

Employees are encouraged to act in line with our values through a range of initiatives. At least once a year, various programmes are organised to involve employees in initiatives that positively impact the broader society. These include corporate volunteering opportunities, enabling employees to contribute to socially responsible projects and humanitarian campaigns — such as fundraising for the socially disadvantaged, supporting local communities, and participating in initiatives to preserve natural resources. We also promote employee education and awareness on sustainable development, strengthening their understanding of and commitment to Petrol’s values and objectives.

Development and monitoring of corporate culture

Corporate culture is regularly monitored and evaluated through annual surveys of organisational climate, employee satisfaction, and engagement. These surveys provide insight into employees’ perceptions of the work environment, communication practices, interpersonal relationships, and factors that influence engagement.

In addition to general organisational climate surveys, we also conduct targeted surveys — such as the “Satisfaction with Internal Cooperation” survey — aimed at improving the efficiency and quality of collaboration within the company. Employees can anonymously share their views on key challenges and strengths of the work environment, which serve as the basis for developing action plans. These measures are monitored and adapted to the current needs of employees and the strategic directions of the Group.

We also promote active employee involvement in socially responsible initiatives, such as corporate volunteering programmes and initiatives focused on environmental protection and support for local communities. This way, an organisational culture based on sustainable principles and responsible business practices is fostered.

The Management Board

ensures oversight of the implementation of values and cultural improvements, while management at all levels of the company is responsible for their operational execution. Key indicators are regularly monitored through annual reports and internal evaluation processes, allowing for the continuous alignment of initiatives with employee needs and Petrol’s strategic priorities.

Reporting mechanisms

In line with our internal rules on the prevention and mitigation of mobbing, employees are able to report perceived mobbing or other violations of their workplace rights, seek redress for inappropriate.

conduct in the work environment, and ensure timely action to protect their rights and dignity. These mechanisms provide for the proper handling of such reports and the protection of individuals who report or publicly disclose information about violations, irregularities, unethical conduct, or other actions suspected of constituting criminal offences.

The Petrol Group has also adopted the Rules on Business Supervision and Investigations, which establish clear procedures and responsibilities for conducting internal controls and investigations. These Rules form the foundation of the Group’s integrity assurance system, supporting compliance with moral, legal, and ethical standards.

The control and investigation procedures are designed to enable the timely detection of potential violations and the activation of appropriate response mechanisms — including sanctions. This ensures that operations across the Petrol Group are carried out in a manner that upholds accountability, transparency, and legality. At the same time, these mechanisms help safeguard the rights and safety of employees and business partners. By implementing these procedures, the Group strengthens trust in its operations and ensures timely resolution of violations, which is essential for long-term organisational success and integrity.

Business Conduct Training

Special attention is paid to employee training in the area of business conduct, with a focus on promoting corporate integrity, ethical behaviour and responsible practices. Although a written training policy has not yet been formally adopted, its establishment is planned in the near future. The new policy is expected to reflect the Group’s core strategic directions — including sustainability transition targets, the business strategy, and the action plan — thereby strengthening Petrol’s commitment to responsible business.

Employees currently receive training through both formal and informal learning formats. Formal training includes workshops, seminars and other programmes focused on business ethics, regulatory compliance, whistleblower protection, and mobbing prevention. Informal education takes place through internal newsletters, such as articles and contributions on the intranet platform, which present good practices, corporate values, and guidance on ethical conduct in day-to-day operations.

The Management Board ensures oversight of the implementation of values and cultural improvements, while management at all levels of the company is responsible for their operational execution.

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We also organise regular presentations of the corporate Code of conduct, which serves as a foundational framework for business behaviour and helps employees understand the core principles of integrity and accountability in the workplace. The Code is a central element of training, as it defines the values and standards that all employees are expected to uphold.

Our future training policy will further enhance existing practices by more closely linking education to the achievement of sustainability transition goals, the improvement of business processes, and the maintenance of high standards of integrity across all aspects of the Group’s operations.

G1-2– Management of relationships with suppliers

The Petrol Group operates exclusively in the downstream part of the value chain, specifically as a distributor of petroleum and related finished products. In the wholesale sector (B2B and B2G), we are active in the Slovenian market, the markets of Southeast Europe, and other European markets. In the retail sector (B2C), we operate a network of physical sales locations in Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, and Serbia. At present, we do not have a comprehensive overview of our suppliers’ supply chains.

Compliance with regulatory frameworks and sustainability standards forms a key part of our procurement processes. As a result, all supplied fuels and goods comply with EU directives, environmental standards and adopted EU actions, including sanctions. As part of our continuous improvement efforts, we continue to strengthen oversight and regularly monitor suppliers to ensure long-term compliance and accountability throughout the supply chain.

At the Petrol Group, the importance of comprehensive management of supplier relationships, taking into account risks associated with the supply chain and impacts on sustainability issues, is recognised. Our approach is defined in the General Procurement Conditions, which set out

The fundamental rules of cooperation with suppliers and their obligations to the Petrol Group. We cooperate with suppliers on the basis of a concluded contract or a confirmed quote, followed by a confirmed purchase order. An integral part of every contract is the inclusion of payment deadlines for services provided and goods ordered, as well as defined default interest in the event of late payment. Because our business strategy also includes a financial plan, which allocates funds for supplier payments, delays generally do not occur. Supplier payments for services and goods are managed via the SAP system.

Before signing a contract, we carry out a verification process for each supplier, which includes a comprehensive assessment based on a questionnaire covering sustainable requirements for suppliers. Suppliers must ensure compliance with legal and ethical standards, which they demonstrate by formally implementing an internal Corporate Integrity Code and a compliance policy in writing. In addition, suppliers are required to adopt internal acts to prevent money laundering, terrorist financing and bribery and to establish procedures to monitor the effectiveness of these policies. Suppliers must also ensure the protection of personal data through appropriate technical and organisational actions and disclose whether they or their business partners appear on any sanctions lists. In addition, whether the company discloses sustainability information is also checked.

In 2024, the Petrol Group conducted an assessment of existing suppliers, thereby gaining insight into the compliance of business partners. This assessment constitutes a key basis for the further development of our approach to supply chain management. 279 suppliers were assessed using a questionnaire. The assessment included criteria pertaining to financial stability, ensuring ethical business practices, product safety and quality, and demonstrating sustainable policies.

A Code of Conduct for Suppliers and an adjustment of the supplier selection process are under development. These will further strengthen our commitment to respecting human rights, labour rights, fighting corruption, and ensuring fair competition. As part of these changes, additional formalised environmental and social criteria are being introduced. These will be integrated into supplier assessments and cooperation processes, as part of responsible and sustainable supply chain management.

G1-5– Political influence and lobbying activities

As part of the double materiality assessment, we identified the Petrol Group’s corporate position (stance) on national legislation or policy proposals related to environmental and social factors as a material impact. The impact disclosed in this section has been recognised as specific to the Petrol Group.

The Petrol Group does not provide or receive financial or in-kind political contributions in any form. We actively participate in interest groups and representative bodies in order to contribute to the legislative drafting process in areas relevant to our operations — especially the regulation of petroleum product prices. We are also registered in the European Transparency Register, through which we seek to influence EU legislation and decision-making processes, particularly with regard to energy price regulation.

Our corporate stance is built on a proactive approach to legislative changes and the maintenance of open dialogue with regulators and other stakeholders. Oversight of these activities is provided by the Compliance Department, which actively monitors all regulations relevant to the Petrol Group throughout their entire lifecycle — from drafting and adoption to approval and entry into force.

We monitor proposals and developments in national legislation and policies related to environmental and social matters affecting our sector on a daily — and sometimes even hourly — basis. We assess their potential impact on our operations and actively submit comments, particularly when proposed legislation is not well-aligned with the economic realities or strategic interests of the Petrol Group. These comments are submitted either directly to regulatory bodies or through cooperation with interest groups (e.g. chambers of commerce, energy and trade associations).

At the Petrol Group, we recognise that our sector is subject to specific legislative requirements. Accordingly, we have identified key regulatory developments as part of our impacts, risks and opportunities assessment, such as:

  • our commitment to achieving the sustainable transition goals set out in the National Energy and Climate Plans (NECPs);
  • alignment with EU directives aimed at reducing greenhouse gas (GHG) emissions, transitioning to renewable energy sources, and introducing carbon taxes and ETS systems.

We are developing a methodology with relevant metrics to support these processes. Going forward, we will also monitor the effectiveness of our key performance indicators.

Our corporate stance is built on a proactive approach to legislative changes and the maintenance of open dialogue with regulators and other stakeholders.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

G1-6– Payment practices

In terms of payment practices, we follow the contracts concluded with individual suppliers, with the maturity of the Petrol Group's liabilities varying depending on the supplier and the type of liability (e.g. petroleum products, gas, electricity, merchandise). The payment terms for most of the payables are aligned with market or industry standards.

The average payment term in the Petrol Group is 27 days, though this varies depending on the type of goods, delivery parity, and suppliers, as different commercial terms imply different payment conditions. For electricity and gas procurement, payment terms are largely determined by the trading model.

For other goods and services, individual payment terms are agreed upon with suppliers and are consistently observed. These typically range between 30 and 60 days, although some fall outside this range.

In 2024, the Petrol Group settled payments within agreed deadlines across all categories. The overall average time to settle an invoice — from the start date of the contractual or legally prescribed payment period — was 27.4 days. In total, 99.6% of all payments were made within the agreed deadline.

In the procurement of petroleum products, which represents more than 30% of total purchases, 99.6% of the value was paid on time in 2024. For electricity procurement, 98.6% was paid within the agreed terms; for gas, 100%. In merchandise procurement, where we process a larger number of smaller payments, 97.9% of the value was paid on time. For other goods procured for current operations, the figure was 98.5%.

G1-6, paragraph 33 a-d

The data disclosed above covers the following Petrol Group companies: Petrol d.d., Ljubljana; E 3, d.o.o.; Petrol d.o.o. Beograd; Petrol LPG d.o.o. Beograd; Petrol Lumennis PB JO d.o.o. Beograd; Petrol Lumennis VS d.o.o. Beograd; Petrol Lumennis ZA JO d.o.o. Beograd; Petrol Lumennis ŠI JO d.o.o. Beograd; Petrol KU 2021 d.o.o. Beograd; Petrol Lumennis KI JO d.o.o.; Beogas d.o.o. Beograd; STH Energy d.o.o. Kraljevo; Petrol BH Oil Company d.o.o. Sarajevo; Petrol Power d.o.o. Sarajevo; Petrol Hidroenergija d.o.o. Teslić; Petrol Crna Gora MNE d.o.o.; Petrol d.o.o. (Zagreb); Vjetroelektrane Glunča d.o.o.; and Petrol Javna Rasvjeta d.o.o.

Minor delays may occur due to technical issues in payment processing, regulatory changes, invoice data reconciliation, late receipt of invoices, or multi-level approval procedures.

Since we consistently comply with agreed payment terms, there are no ongoing legal proceedings related to delayed payments.

The calculation methodology is based on the total value of all transfers made in 2024. For a more accurate analysis of payment practices, suppliers were categorised based on their share of overall deliveries.

A key assumption in our calculation is that delays of up to 5 days beyond the agreed payment deadline are not classified as late. This reflects common practice and accounts for minor administrative delays such as weekends, public holidays or other administrative delays—none of which indicate problems with payment discipline.

The metric related to payment practice disclosure has not been validated by an external body. All calculations and analyses are carried out internally.

A Petrol Group-specific topic: Cyber security

Cyber security has been identified as a material risk for the Petrol Group as part of the financial materiality assessment. It represents both an actual and potential risk, with a growth trend anticipated in the medium and long-term. These risks include information leakage, service disruption, information system breaches, and legal violations or non-compliance.

Since we consistently comply with agreed payment terms, there are no ongoing legal proceedings related to delayed payments.

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For the Petrol Group, safeguarding information systems is crucial — both for our internal operations and for the continued functioning of critical infrastructure in the energy and transport sectors.

A uniform, Group-wide cyber security policy has been established for all Petrol Group companies and markets, with oversight provided by the Management Board. This is complemented by specific sectoral policies that address key requirements such as protective security mechanisms, information security, antivirus protection, and disaster recovery protocols. We also require our suppliers to adhere to the same security standards via contractual obligations, in line with the NIS 2 Directive on cyber security.

The security mechanisms in place ensure that customer data are also appropriately protected.

The primary objective of our information security management is to prevent security incidents or, where unavoidable, to minimise their impact on business operations. We follow the principle that prevention is better than cure — achieved by designing secure information systems and applying information security principles throughout the planning, implementation, use, and maintenance phases.

We achieve our goals through the consistent implementation of both organisational and technical measures.

Organisational measures:

- strengthening trust and support from management for information security governance

  • raising employee awareness in response to emerging security risks,
  • mapping information assets and determining their criticality for business operations,
  • reviewing and updating the risk assessment,
  • defining key performance indicators (KPIs) for information security,
  • reviewing and revising information protection policies,
  • reviewing or updating the business continuity plan,
  • reviewing or updating the incident response plan,
  • reviewing and updating responsibilities assigned to personnel for the achievement of security objectives,
  • ensuring compliance with regulatory requirements (ISO/IEC 27001, GDPR, NIS 2, etc.).

Technical actions:

  • status review – assessment of cyber security maturity,
  • meaningful use of cloud services,
  • safe use of mobile devices,
  • supplementing or upgrading cyber security management according to current needs and taking into account good practices from the industry,
  • review of the effectiveness of control systems for monitoring security events and IT operations,
  • actions to ensure IT security and resilience against cyber threats (the ability to protect, detect and respond to incidents),
  • access control and data protection (strong authentication, information leakage prevention, identity management),
  • building a knowledge base, Threat intelligence sources.

All the above measures for our own operations are implemented periodically, in line with good process management practices that encompass establishment, implementation, maintenance, and continuous improvement. The same measures must also be adopted by suppliers who may affect the Petrol Group’s cyber security.

The main challenge in this area stems from rapid IT developments and their influence on improving business processes. Technological innovations — such as artificial intelligence (AI), the Internet of Things (IoT), connected devices, and big data — significantly shape the broader ecosystem. Regardless of the expected benefits, it is essential to consistently comply with new regulatory requirements and adhere to sound security practices, whether already in place or emerging at the global level.

The effectiveness of our defence, detection, and response to information security incidents is monitored monthly. Key monitoring indicators include the number of security event investigations, the number of attacks, and the number of detected security incidents.

The objective of effective information security management is to enable the organisation to focus on the real challenges of digital business — and, above all, to create a strategy that is goal-oriented and tailored to actual needs.

Metrics and targets are defined by internal experts, as they are not prescribed by sectoral standards and legislation. They are managed exclusively in-house on an annual basis and are not submitted for external validation.

GDPR- General Data Protection Regulation

Strategic targets, metrics and actions

Target Metrics

Actions

Total commercial detriment incurred

< 10 million

  • Number of security event investigations, number of attacks, number of security incidents, commercial detriment incurred
  • Measurement frequency: monthly

The risks of security incidents are reduced through organisational and technical actions.

Criticality

Response Criticality
critical 60 min
high 60 min
moderate 240 min
low 24 hours
  • Timely response to a security incident
  • Measurement frequency: monthly
  • The risks of security incidents are reduced through organisational and technical actions.

Security events, attacks and security incidents in 2024

Event type 2024
Number of security incident investigations 2,607
Number of attacks 112
Number of security incidents 10
Commercial detriment incurred (loss reported to the Management Board) 0 EUR
Timely response to a security incident (in %) 100 %*
  • The performance criterion is defined as: (number of incidents of a certain level handled within the agreed time in the previous month) x 100 / (number of all incidents of a certain level handled in the previous month).

As the intensity of attacks increases, it is essential to reduce the risk of consequences from security incidents that cannot be fully prevented. Our long-term objective is to ensure that any business impact or loss remains minimal or negligible through the implementation of appropriate security measures.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Public

Disclosure of the list of ESRS disclosure requirements that have been met in the preparation of the sustainability statement, based on the result of the materiality assessment (ESRS 2 IRO-2 56)

ESRS disclosures

Chapter Page number
ESRS 2 BP-1, 5 a-d 130
ESRS 2 BP-2, 9 a, 10 a-d, 11 a, 13, 15, 16 and AR 1 c

BP-2 Disclosures in relation to specific circumstances

130, 132,

ESRS 2 GOV-1

21 a-e, 22 a-d, 23 a, b

GOV-1 The role of the administrative, management and supervisory bodies

132, 133, 134, 135, 137, 138, 139, 140

ESRS 2 GOV-2

26 a-c

GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies

141

ESRS 2 GOV-3

29 a-e

GOV-3 Integration of sustainability-related performance in incentive schemes

142

ESRS 2 GOV-4

30, 32 and AR 48

GOV-4 Statement on due diligence

144

ESRS 2 GOV-5

36 a - e

GOV-5 Risk management and internal controls over sustainability reporting

145

ESRS 2 SBM-1

40 a, b, d, e, f, g, 41, 42 a-c

SBM-1 Strategy, business model and value chain

147

ESRS 2 SMB-2

45 a, b, c, d

SBM-2 Interests and views of stakeholders

157

ESRS 2 SMB-3

48 a, b, c, f

SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

163

ESRS 2 IRO-1

53 a, b, c, d, e, f, g

IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities

165

ESRS2 IRO-2

59

IRO-2 Disclosure requirements from the ESRS covered in the Company’s Sustainability statement

175

E1.GOV-3

13

E1.GOV-3 Integration of sustainability-related performance in incentive schemes

205

E1-1

14, 16 a-j, 17

E1-1 Transition plan for climate change mitigation

206

E1.SBM-3

18,19 a-c

E1.SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

208

E1.IRO-1

20 a-c, 21, AR 15

E1.IRO-1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities

211

E1.ESRS 2 MDR-P

24, E1-2 5 a-e

E1-2 Policies related to climate change mitigation and adaptation

213

E1.MDR-A

28, 29 a-c, AR 21

E1-3 Actions and resources in relation to climate change policies

215

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316

ESRS disclosures

Chapter

Page number

E1.MDR-T 32, E1-4 33, 34 a-f
E1-4 Targets related to climate change mitigation and adaptation 217
E1-5 37 a-c, 38 a-e, AR 34, 39, 40-43 E1-5 Energy consumption and mix 221
E1-6 44 a-d, 52 a, b, AR 39 b, AR 42 c, AR 43 c, AR 45 d, e, 53, 55, AR 55 E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 223
E2.IRO-1 11 a-b, AR 9 ESRS 2 IRO-1 Description of the processes to identify and assess material pollution-related impacts, risks and opportunities 228
E2.MDR-P 14, 15 a-c E2-1 Policies related to pollution 229
E2.MDR-A 18 E2-2 Actions and resources related to pollution 231
E2.MDR-T 22, E2-3, 23 b-d, 25 E2-3 Targets related to pollution 234
E2-4 28 a, 30 a-c E2-4 Pollution of water and soil 236
E2-5 34 E2-5 Substances of concern 236
E3.IRO-1 8 a-b ESRS 2 IRO-1 Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities 238
E3.MDR-P 11, 12 a (i), b-c, 13, 14 E3-1 Policies related to water and marine resources 239
E3.MDR-A 17, E3-2, 19 E3-2 Actions and resources related to water and marine resources 240
E3.MDR-T 22, E3-3, 23 a, c, 25 E3-3 Targets related to water and marine resources 242
E3-4 28 a-e, AR 29, 29 E3-4 Water consumption 243
E5.IRO-1 11 a-b ESRS 2 IRO-1 Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities 246
E5.MDR-P 14, E5-1, 15 a-b E5-1 Policies related to resource use and circular economy 247
E5.MDR-A 19 E5-2 Actions and resources related to resource use and circular economy 247
E5.MDR-T 23, E5-3, 24 a-f, 25, 27 E5-3 Targets related to resource use and circular economy 247
E5-4 30, 31 a-c, 32, AR 25 E5-4 Resource inflows

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Sustainability report

Public ESRS disclosures

Chapter Page number
S1-1 Policies related to own workforce
S1-2 Processes for engaging with own workers and workers’ representatives about impacts
S1-3 Procedures for remediation of negative impacts and channels through which members of the workforce can raise concerns
S1-4 Taking actions related to material impacts on own workforce and approaches to managing material risks and exploiting material opportunities related to own workforce and the effectiveness of these actions
S1-5 Targets related to the management of significant negative impacts, the promotion of positive impacts, and the management of material risks and opportunities
S1-6 Characteristics of employees in the company
S1-8 Collective bargaining coverage and social dialogue
S1-10 Adequate wages
S1-14 Health and Safety Metrics
S1-16 Metrics of Remuneration (Wage Gap and Annual Total Remuneration)
ESRS 2 SBM-2 Interests and views of stakeholders
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
S3.MDR-P Policies related to affected communities
S3-2 Processes for engaging with affected communities

about impacts

286

S3-3 Processes to remediate negative impacts and channels for affected communities to raise concerns

287

S3.MDR-A, 31, 32 a-d, 34 a-b, 35, 36, 38

S3-4 Taking action on material impacts on affected communities, and approaches to mitigating material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions

288

S3.MDR-T 41, 42 a-c

S3-5 Targets related to the management of significant negative impacts, the promotion of positive impacts, and the management of material risks and opportunities

289

ESRS 2 SBM-2

ESRS 2 SBM-2 Interests and views of stakeholders

290

S4.SBM-3, 10 a-c, 11, 12

ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

292

S4.MDR-P, 15, S4-1, 16 a-c, 17

S4-1 Policies related to consumers and end-users

293

S4-2, 20 a-d, 21

S4-2 Processes for engaging with consumers and end-users about impacts

295

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318

Public

ESRS disclosures

Chapter

Page

number

S4-3, 25 a-d, 26

S4-3 Procedures for remedial actions regarding negative impacts and channels through which consumers and end-users can raise concerns

296

S4.MDR-a, 30, S4-4, 31 a-d, 32 a-c, 33 a-b, 34-37

S4-4 Taking actions related to material impacts on consumers and end-users, and adopting approaches to manage material risks and leverage material opportunities associated with consumers and end-users, as well as assessing the effectiveness of the said actions

298

S4.MDR-T, 40, 41 a-c

S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

300

G1.GOV-1, 5 a, 5 b

ESRS 2 GOV 1 The role of the administrative, supervisory and management bodies

301

ESRS 2 IRO-1

ESRS 2 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities

303

G1.MDR-P; G1-1, 9, 10 a, 10 e, 10 g

G1-1 Business Conduct Policies and Corporate Culture

303

G1-2, 14, 15 a, 15 b

G1-2 Management of relationships with suppliers

307

G1-5, 29 a-d, 30

G1-5 Political influence and lobbying activities


G1-6 Payment practices

MDR, specific theme

G1 Cybersecurity

DISCLOSURE of the list of data points derived from other EU legislation and information on where they can be found in the sustainability statement

ESRS disclosures Chapter Page number
ESRS 2 BP-2, 13 a-c, 14 a-b, 15 E1-3, 29 c, 16 c 177, 192

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Page 319

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial report

Page 320

3. FINANCIAL REPORT

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Page 321

Table of Contents

  • Statement of the management board’s responsibility......................................................... 323
  • Independent auditor’s report ............................................................................................... 324
  • Financial statements of the Petrol Group and Petrol d.d., Ljubljana...................................... 336
  • Notes on the Financial statements..................................................................................... 342

5.10 Interests and dividends

5.11 Finance income and expenses

5.12 Income tax expenses

5.13 Earnings per share

5.14 Other comprehensive income

5.15 Intangible assets

5.16 Right-of-use assets

5.17 Property, plant and equipment

5.18 Investment property

5.19 Investments in subsidiaries

5.20 Investments in jointly controlled entities

5.21 Investments in associates

5.22 Financial assets at fair value through other comprehensive income

5.23 Non-current loans

5.24 Non-current operating receivables

5.25 Inventories

5.26 Current loans

5.27 Current operating receivables

5.28 Contract assets

5.29 Derivative financial instruments

5.30 Prepayments and other assets

5.31 Cash and cash equivalents

5.32 Equity

5.33 Provisions for employee post-employment and other non-current benefits

5.34 Other provisions

5.35 Deferred income

5.36 Borrowings and other financial liabilities

5.37 Lease liabilities

5.38 Non-current operating liabilities

5.39 Current operating liabilities

5.40 Contract liabilities

5.41 Other liabilities

6. Financial instruments and risk management

6.1 Credit risk

6.2 Liquidity risk

6.3 Foreign exchange risk

6.4 Price and volume risk

6.5 Interest rate risk

6.6 Capital adequacy management

6.7 Carrying amount and fair value of financial instruments

6.8 Environmental and climate risks

7. Related party transactions

8. Contingent liabilities

9. Events after the reporting date

10. Financial statements of Petrol d.d., Ljubljana by activity in accordance with the Electricity Supply Act, the Gas Supply Act and the Heat Supply from Distribution Systems Act

STATEMENT OF THE MANAGEMENT BOARD’S RESPONSIBILITY

The Company’s Management Board is responsible for the preparation of the financial statements of the Petrol Group and Petrol d.d., Ljubljana, for the year ended 31 December 2024, including the related policies and notes, which, in its opinion, give a true and fair view of the development and results of operations and the financial position of the Company, together with a description of the principal risks to which the Company and any other companies included in the consolidated financial statements, taken as a whole, are exposed.

The Management Board confirms that the appropriate accounting policies have been applied consistently in the preparation of the financial statements, that the accounting estimates have been made on the basis of fair value, prudence and good governance, and that the financial statements give a true and fair view of the state of affairs of the Group and the Company and the results of their operations for the year ended 31 December 2024.

The Management Board is also responsible for keeping proper accounting records, for taking reasonable precautions to safeguard property and other assets, and certifies that the financial statements, including the notes thereto, have been prepared on a going concern basis and in accordance with the applicable law and International Financial Reporting Standards as adopted by the European Union.

The Management Board accepts and approves the financial statements of the Petrol Group and Petrol d.d., Ljubljana, including the related policies and notes, for the year ended on 31 December 2024.

The tax authorities may audit the Company’s operations at any time within five years of the end of the year in which the tax was due. This may result in additional liabilities for tax, interest and penalties arising from corporate income tax (CIT) or other taxes and duties. The Company’s Management Board is not aware of any circumstances that could give rise to a material liability in this respect.

Sašo Berger

Drago Kavšek

President of the Management Board

Member of the Management Board

Marko Ninčević

Jože Smolič

Member of the Management Board

Independent Auditor’s Report

To the Shareholders of Petrol d.d., Ljubljana

Report on the audit of the consolidated and separate financial statements

Our opinion

In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the consolidated and separate financial position of Petrol d.d., Ljubljana (the “Company”) and its subsidiaries (together – the “Group”) as at 31 December 2024, and the Group’s consolidated and the Company’s separate financial performance and consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union.

Our opinion is consistent with our additional report to the Audit Committee of Petrol d.d. dated 7 April 2025.

What we have audited

The Group’s consolidated and the Company’s separate financial statements comprise:

  • the consolidated and separate statements of profit or loss for the year ended 31 December 2024;
  • the consolidated and separate statements of other comprehensive income for the year ended 31 December 2024;
  • the consolidated and separate statements of financial position as at 31 December 2024;
  • the consolidated and separate statements of changes in equity for the year then ended;
  • the consolidated and separate statements of cash flows for the year then ended; and
  • the notes to the consolidated and separate financial statements, comprising material accounting policy information and other explanatory information.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and Regulation (EU) No. 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities (the “Regulation”). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated and separate financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group and the Company in accordance with International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) and with the ethical requirements that are relevant to our audit of the consolidated and separate financial statements in Slovenia.

have fulfilled our other ethical responsibilities in accordance with those requirements and with the IESBA Code.

To the best of our knowledge and belief, we declare that non-audit services that we have provided to the Company and its subsidiaries are in accordance with the applicable law and regulations in Slovenia and that we have not provided non-audit services that are prohibited under Article 5(1) of the Regulation.

The non-audit services that we have provided to the Company and its subsidiaries in the period from 1 January 2024 to 31 December 2024 are disclosed in the note 5.5 to the consolidated and separate financial statements.

Our audit approach

Overview

  • Overall materiality for the consolidated financial statements of the Group: EUR 18,250 thousand, which represents approximately 2.5% of Gross profit (Revenue from contracts with customers minus Cost of goods sold) of the Group.
  • Overall materiality for the separate financial statements of the Company: EUR 10,669 thousand, which represents approximately 2.5% of Gross profit (Revenue from contracts with customers minus Cost of goods sold) of the Company.
  • We conducted audit work at 8 components in 3 countries.
  • Our audit scope addressed 90.7% of the Group’s absolute value of net profit for the year, 92.5% of Revenue from contracts with customers for the year and 87.8% of total Assets at the year end.
  • Impairment of investments in subsidiaries in the separate financial statements and impairment of goodwill in the consolidated financial statements.
  • Recognising gain and loss from derivatives in the consolidated and separate financial statements.

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated and separate financial statements. In particular, we considered where Management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of Management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

Materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the consolidated and separate financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated and separate financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall Group and the Company materiality for the consolidated and separate financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, if any, both individually and in aggregate on the consolidated and separate financial statements as a whole.

Overall Group and Company materiality


The Group: EUR 18,250 thousand

The Company: EUR 10,669 thousand

How we determined it

  • The Group: approximately 2.5% of Gross profit (Revenue from contracts with customers minus Cost of goods sold) of the Group.
  • The Company: approximately 2.5% of Gross profit (Revenue from contracts with customers minus Cost of goods sold) of the Company.

Rationale for the materiality benchmark applied

We chose Gross profit (Revenue from contracts with customers minus Cost of goods sold) as the benchmark because, in our view, it is the benchmark against which the performance of the Group and Company is most commonly measured by users and is a generally accepted benchmark. We chose the 2.5% threshold, which is within the range of acceptable quantitative materiality thresholds for this benchmark.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Translation note:

This version of our report is a translation from the original, which was prepared in Slovenian language. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

Key audit matter

How our audit addressed the key audit matter

Impairment of investments in subsidiaries in the separate financial statements and impairment of goodwill in the consolidated financial statements

See Note 3.a Material accounting policy information – Subsidiaries, Note 3.j2 Material accounting policy information – Impairment-Non financial assets – Impairment of investments in subsidiaries and Note 3.e Material accounting policy information – Intangible assets – Goodwill.

The total value of investments in subsidiaries as at 31 December 2024 is disclosed in Note 5.19 in the separate financial statements – Investments in subsidiaries, and amounts to EUR 595,955 thousand; the total value of goodwill as at 31 December 2024 is disclosed in Note 5.15 in the consolidated financial statements – Intangible assets, and amounts to EUR 158,970 thousand.

Investments in subsidiaries and goodwill are considered to be key audit matters due to:

  • the complexity of the assessments made by the Management based on the discounted future cash flows,
  • the importance of subjective judgements and assessments used by the Management, and
  • the impact of the ever-changing operations in the industry in which the subsidiaries, for which investments are shown or to which goodwill relates, operate.

Group/Company applied value in use to determine recoverable amount.

Our audit approach included the following audit

Procedures:

  • Discussion with Management to understand the basis for assumptions used.
  • Assessing whether the recoverable amount calculated as Value in Use (ViU) is appropriately determined in accordance with requirements of IAS 36.
  • Assessing and testing key assumptions used in the impairment tests, such as growth rates, income and expenses in determining cash flows, EBITDA margin, which are used in cash flows, and assumptions used to determine discount rates including inflation rates.
  • Assessing the methodologies used in valuations. We assess that the Value in Use (ViU) method used was consistent with the requirements of applicable IFRSs.
  • Testing the mathematical accuracy of the valuation calculations.
  • Assessing the suitability of the disclosures in consolidated and separate financial statements in relation to the performed impairment tests for investments in subsidiaries and goodwill.

We also included an asset valuation expert in our audit team who helped us assess the methodology used and the use of discount rates.

Recognising gain and loss from derivatives in the consolidated and separate financial statements

See Note 3.c2 Material accounting policy information – Financial assets at fair value through other comprehensive income and Note 3.c3- Derivative financial instruments.

The total of Gain from derivatives in 2024 is disclosed in Note 5.9 Gain/(Loss) from derivatives and amounts to:

  • EUR 116,691 thousand of Gain from derivatives for the Group and
  • EUR 120,797 thousand of Gain from derivatives for the Company.

Our audit approach included the following audit procedures:

  • Assessing the environment of the IT systems related to the recording of derivatives transactions, as well as other relevant systems that support the accounting of related income and expenses.
  • Assessing the design of the processes established for the accounting of derivatives transactions and on a sample basis testing their operational effectiveness all the way to the general ledger entry level.

Translation note:

This version of our report is a translation from the original, which was prepared in Slovenian language. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

Key audit matter

How our audit addressed the key audit matter

The total Loss from derivatives in 2024 is disclosed in Note 5.9 Gain/(Loss) from derivatives and amounts to:

- EUR 115,337 thousand of Loss from derivatives for the Group and

● EUR 111,723 thousand of Loss from derivatives for the Company.

Recognising gains and losses from derivatives is considered to be key audit matter due to:

  • ● the significant changes in prices of goods and changes in interest rates in 2024,
  • ● the complicated application of International Financial Reporting Standard 9 – Financial Instruments (hereinafter: IFRS 9),
  • ● the specifics of the valuation of derivatives,
  • • the importance of subjective judgements and assessments of the Management in differentiating between a contract based on the requirements of IFRS 9, which is treated as a derivative at fair value, and a contract for “own use” that is not measured at fair value and
  • • the related subjective judgement regarding the classification in the financial statements and the related valuation of open positions as at 31 December 2024.

● On a sample basis we tested underlying documentation (such as contracts and settlement documents) supporting derecognition of derivatives and recognition of gain/loss in the consolidated and separate financial statements.

● On a sample basis we tested the appropriateness of valuation of derivatives and recognition of gain/loss in the consolidated and separate financial statements.

● Assessing the accuracy and completeness of presentation and disclosures in the consolidated and separate financial statements.

In our audit team, we also included an expert for IFRS 9 who assisted us with the accounting treatment of derivatives and the related valuation of the open positions as at 31 December 2024.

How we tailored our Group audit scope

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.

The Group engagement team carried out audit work on the Company’s separate financial statements. The Group engagement team determined Group audit materiality and issued audit instructions to component auditors, constantly through the year discussed important audit matters, and reviewed the work of component auditors. Full audit was performed at 8 components, 3 of which were not audited by us, instead we visited these components and reviewed the work of the auditor.

Reporting on other information including the Business Report

Management is responsible for the other information. The other information comprises the “Introduction”, “Business Report” and “Sustainability report” (jointly referred to as: “Business Report”) which are a constituent part of the Annual Report of the Group and the Company (but does not include the consolidated and separate financial statements and our auditor’s report thereon) which we obtained prior to the date of this auditor’s report.

Our opinion on the consolidated and separate financial statements does not cover the other information, including the Business Report.

Translation note:

This version of our report is a translation from the original, which was prepared in Slovenian language. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

With respect to the Business Report we also performed procedures required by the Slovenian Companies Act. Those procedures include assessing whether the Business Report is consistent with

the consolidated and separate financial statements and whether the Business Report was prepared in accordance with legal requirements.

Based on the work undertaken in the course of our audit, in our opinion:

  • the information given in the Business Report for the financial year for which the consolidated and separate financial statements are prepared is, in all material respects, consistent with the consolidated and separate financial statements; and
  • the Business Report, excluding the Sustainability report has been prepared, in all material respects, in accordance with the requirements of the Slovenian Companies Act.

The Sustainability report was subject to our separate limited assurance engagement and we provided a separate limited assurance report containing an unmodified limited assurance conclusion dated 9 April 2025.

In addition, in the light of knowledge and understanding of the Group and the Company and their environment obtained in the course of the audit, we are required to report if we have identified material misstatements in the other information that we obtained prior to the date of this auditor’s report. We have nothing to report in this regard.

Responsibilities of Management and those charged with governance for the consolidated and separate financial statements

Management is responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with International Financial Reporting Standards as adopted by the European Union, and for such internal control as Management determines is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated and separate financial statements, Management is responsible for assessing the Group’s and Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group and the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s and the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the consolidated and separate financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

  • Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Company’s internal control.
  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.
  • Conclude on the appropriateness of Management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Company to cease to continue as a going concern.
  • Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair.

Translation note: This version of our report is a translation from the original, which was prepared in Slovenian language. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for the purpose of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable actions taken to eliminate threats or safeguards applied.

Translation note:

This version of our report is a translation from the original, which was prepared in Slovenian language. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

Appointment

We were first appointed as auditors of the Group and the Company at the shareholders meeting of the Company on 21 April 2022 for the financial year ended 31 December 2022. The president of the supervisory board signed the audit contract on 1 August 2022. The contract was concluded for 3 years. Our appointment has been renewed by shareholders resolutions in the intermediate years, representing a total period of our uninterrupted engagement appointment for the Group and the Company, as a public interest entity, of 3 years.

Report on the compliance of the presentation of consolidated and separate financial statements with the requirements of the European Single Electronic Format (“ESEF”)

We have been engaged based on our agreement by Management of the Company to conduct a reasonable assurance engagement for the verification of compliance with the applicable requirements of the presentation of the consolidated and separate financial statements of the Group and the Company for the financial year ended 31 December 2024 (the “Presentation of the consolidated and separate financial statements”).

Description of subject matter and applicable criteria

The Presentation of the consolidated and separate financial statements has been applied by Management of the Company to comply with the requirements of art. 3 and 4 of the Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council with regard to regulatory technical standards on the specification of a single electronic reporting format (the “ESEF Regulation”). The applicable requirements regarding the Presentation of the consolidated and separate financial statements are contained in the ESEF Regulation.

The requirements described in the preceding sentence determine the basis for application of the Presentation of the consolidated and separate financial statements and, in our view, constitute appropriate criteria to form a reasonable assurance conclusion.

Translation note:

This version of our report is a translation from the original, which was prepared in Slovenian language. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

Responsibilities of Management and those charged with governance

Management of the Company is responsible for the Presentation of the consolidated and separate

financial statements that complies with the requirements of the ESEF Regulation. This responsibility includes the selection and application of appropriate markups in iXBRL in the consolidated and separate financial statements using ESEF taxonomy and designing, implementing and maintaining internal controls relevant for the preparation of the Presentation of the consolidated and separate financial statements which is free from material non-compliance with the requirements of the ESEF Regulation.

Those charged with governance are responsible for overseeing the financial reporting process, which should also be understood as the preparation of the consolidated and separate financial statements in accordance with the format resulting from the ESEF Regulation.

Auditor’s responsibility

Our responsibility was to express a reasonable assurance conclusion whether the Presentation of the consolidated and separate financial statements complies, in all material respects, with the ESEF Regulation.

We conducted our engagement in accordance with the International Standard on Assurance Engagements 3000 (R) - ‘Assurance Engagements other than Audits and Reviews of Historical Financial Information’ (ISAE 3000(R)). This standard requires that we comply with ethical requirements, plan and perform procedures to obtain reasonable assurance whether the Presentation of the consolidated and separate financial statements complies, in all material respects, with the applicable requirements.

Reasonable assurance is a high level of assurance, but it does not guarantee that the service performed in accordance with ISAE 3000 (R) will always detect the existing material misstatements (significant non-compliance with the requirements).

Quality control requirements and professional ethics

We apply the International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality Management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

We comply with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.

Summary of the work performed

Our planned and performed procedures were aimed at obtaining reasonable assurance that the Presentation of the consolidated and separate financial statements complies, in all material respects, with the applicable requirements and such compliance is free from material errors or omissions. Our procedures included in particular:

Translation note: This version of our report is a translation from the original, which was prepared in Slovenian language. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

  1. obtaining an understanding of the internal control system and processes relevant to the application of the Electronic Reporting Format of the consolidated and separate financial statements, including the preparation of the XHTML format and marking up the consolidated and separate financial statements;
  2. verification whether the XHTML format was applied properly to the consolidated and separate financial statements;
  3. evaluating the completeness of marking up the consolidated and separate financial statements using the iXBRL markup language according to the requirements of the implementation of electronic format as described in the ESEF Regulation;
  4. evaluating the appropriateness of the Group’s use of XBRL markups in the consolidated and separate financial statements selected from the ESEF taxonomy and the creation of extension markups where no suitable element in the ESEF taxonomy has been identified; and
  5. evaluating the appropriateness of anchoring of the extension elements to the ESEF taxonomy for the preparation of the consolidated and separate financial statements.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

Conclusion

In our opinion, based on the procedures performed, the Presentation of the consolidated and separate financial statements complies, in all material respects, with the ESEF Regulation.

Reporting in accordance with Gas Supply Act, (ZOP) Electricity Supply Act (ZOEE) and Heat Supply from Distribution Systems Act (ZOTDS)

We have been engaged by the Company to perform a reasonable assurance engagement to verify whether the separate financial statements of the Company for the financial year ended 31 December

2024 Disclosed Financial Statements by Activities

The Company disclosed financial statements by activities in Note 10. “Financial statements of Petrol d.d. Ljubljana by activity in accordance with the Electricity Supply Act, the Gas Supply Act and the Heat Supply from Distribution Systems Act” to the separate financial statements, which include Statement of financial position by activities as at 31 December 2024 and Statement of profit and loss by activities for the year then ended (“the Financial statements by activities”) and the criteria for allocation of assets, liabilities, revenues and expenses by activities (the “Criteria”) and other relevant information. The Criteria are also contained in the internal act “Sodila za razporejanje sredstev in obveznosti ter stroškov, odhodkov in prihodkov ter vodenje ločenih računovodskih evidenc in sestavljanje ločenih računovodskih izkazov po Energetskem zakonu in Zakonu o javnih gospodarskih službah”.

Financial statements by activities has been prepared by the Management of the Company to comply with the Criteria and with the requirements of ZOP, ZOEE and ZOTDS.

Translation Note

This version of our report is a translation from the original, which was prepared in Slovenian language. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

Responsibilities of Management and Those Charged with Governance

The Management is responsible for the preparation of the Financial statements by activities as at 31 December 2024 and for the year then ended in accordance with ZOP, ZOEE and ZOTDS. The Management is also responsible for establishing the Criteria and application of these Criteria to the Financial statement by activities, and for such internal control as is necessary according to the decision of the Management to enable the preparation the Financial statement by activities that are free from material misstatement due to fraud or error.

Those charged with governance are responsible for the adoption of Criteria and the control of their use in accordance with the requirements of ZOP, ZOEE, ZOTDS.

Auditor’s Responsibility

Our responsibility was to perform a reasonable assurance engagement and to express a conclusion whether the Company, in all material respects, disclosed Financial statements by activities, established adequate Criteria and applied these Criteria to prepare Financial statements by activities in compliance with the Criteria and the requirements of ZOP, ZOEE, ZOTDS.

We conducted our engagement in accordance with the International Standard on Assurance Engagements 3000 (R) – Assurance Engagements Other than Audits or Reviews of Historical Financial Information (ISAE 3000(R)). This standard requires us to plan and perform the procedures to obtain reasonable assurance whether the Financial statements by activities complies with the Criteria and the requirements of ZOP, ZOEE, ZOTDS, and are free from material misstatement.

In order to assess the adequacy of Criteria, we assessed the compliance with the requirements of ZOP, ZOEE and ZOTDS. We assessed whether the Criteria reflect the scope of activities that give rise to the economic category for which they are intended to be split. If the scope of the activities that give rise to the economic category cannot be measured, we assessed whether the division criteria was determined based on the proportion of direct costs.

In order to assess the accuracy of the application of the Criteria, we checked whether the individual Criteria are used for the split of the economic category for which it was adopted and in the way it was determined.

Reasonable assurance is a high level of assurance, but it does not guarantee that the service performed in accordance with ISAE 3000 R will always detect an existing material misstatement (significant non-compliance with the requirements).

Quality Control Requirements and Professional Ethics

We apply the International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality Management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

We comply with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.

Translation Note

This version of our report is a translation from the original, which was prepared in Slovenian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.

accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

12 Summary of the work performed

Our planned and performed procedures were aimed at obtaining reasonable assurance that, in all material respects, the Company disclosed Financial statements by activities, established adequate Criteria and applied those Criteria to prepare Financial statements by activities in compliance with the applicable requirements. Our procedures included in particular:

  • We identified and assessed the risk of a material misstatement of the Criteria and the appropriateness of their use with the requirements of ZOP, ZOEE, ZOTDS.
  • We obtained an understanding of internal controls relevant to this engagement of providing reasonable assurance in order to design procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal controls.
  • We checked whether the Company established appropriate Criteria and applied those Criteria to prepare the Financial statements by activities.
  • We checked whether the Financial statements by activities comply with the requirements of ZOP, ZOEE, ZOTDS.
  • We verified whether the Financial statements by activities disclosed required information.
  • We reconciled the financial data included in the Financial statements by activities to the Company’s accounting records and to the audited financial statements prepared in accordance with the International Financial Reporting Standards as adopted by the European Union.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

Conclusion

Based on the procedures performed and evidence obtained, in our opinion, in all material respects, the Company disclosed Financial statements by activities, established the adequate Criteria and applied those Criteria to prepare Financial statement by activities in compliance with the Criteria and the requirements of ZOP, ZOEE, ZOTDS.

The key audit partner on the audit resulting in this independent auditor’s report are Primož Kovačič and Dušan Hartman.

For and on behalf of PricewaterhouseCoopers d.o.o.

Primož Kovačič
Director, Certified auditor

Dušan Hartman
Certified auditor

Ljubljana, Slovenia, 9 April 2025

Original report signed in Slovenian language

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

FINANCIAL STATEMENTS OF THE PETROL GROUP AND PETROL D.D., LJUBLJANA

Statement of profit or loss of the Petrol Group and Petrol d.d., Ljubljana

The Petrol Group Petrol d.d. (in EUR thousand) Note 2024 2023 2024 2023
Revenue from contracts with customers 5.3 6,111,679 6,982,677 4,401,582 5,303,129
Cost of goods sold (5,381,312) (6,305,108) (3,974,791) (4,865,439)
Costs of materials 5.4 (55,803) (65,616) (43,970) (52,501)
Costs of services 5.5 (190,207) (186,253) (142,763) (145,844)

Labour costs

5.6 (179,083) (160,563) (116,826) (105,016)

Depreciation and amortisation

5.7 (99,866) (97,483) (48,121) (46,440)

Other costs

5.8 (27,006) (51,351) (16,573) (34,733)
- of which net impairment (losses)/gains on financial and contract assets (6,153) 513 1,010 (619)

Gain on derivatives

5.9 140,505 216,405 143,608 216,303

Loss on derivatives

5.9 (122,670) (167,686) (117,769) (161,803)

Other income

5.3 12,792 10,883 34,561 7,169

Other expenses

(848) (294) (55) (105)

Operating profit or loss

208,181 175,611 118,883 114,720

Share of profit or loss of equity accounted investees

5.10 1,579 3,724

Income from dividends paid by subsidiaries, associates and jointly controlled entities

5.10 44,179 3,767

Finance income

5.11 57,237 62,738 64,086 57,446

Finance expenses

5.11 (78,898) (74,279) (73,702) (67,564)

Net finance expenses

(21,661) (11,541) (9,616) (10,118)

Profit/(loss) before tax


Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Income tax expense

2024 2023 2024 2023
188,099 167,794 153,446 108,369

Net profit/(loss) for the year

145,915 136,552 130,512 92,806

Net profit/(loss) for the year attributable to:

Owners of the controlling company 138,420 135,362 130,512 92,806
Non-controlling interest 7,495 1,190 - -

Basic and diluted earnings per share attributable to owners of the controlling company (EUR/share)

2024 2023 2024 2023
5.13 3.37 3.29 3.17 2.25

The accounting policies and notes form an integral part of these financial statements and should be read in conjunction therewith.

Other comprehensive income of the Petrol Group and Petrol d.d., Ljubljana

The Petrol Group

Petrol d.d.

Note 2024 2023 2024 2023
Net profit/(loss) for the year 145,915 136,552 130,512 92,806
Effect of merger by absorption 5.19 - - (567) -
Effective portion of changes in the fair value of cash flow variability hedging 5.14 15,620 (14,186) (5,567) (12,718)
Change in deferred taxes (3,444) 2,675 1,225 1,811
Change in the fair value of financial assets through other comprehensive income 846 2 846 -
Change in deferred taxes (186) (23) (186) (22)

Foreign exchange differences

31 December 2024 31 December 2023 31 December 2024 31 December
Other comprehensive income to be recognised in the statement of profit or loss in the future 13,127 (11,491) (4,249) (10,929)
Total other comprehensive income to be recognised in the statement of profit or loss in the future 13,127 (11,491) (4,249) (10,929)
Unrealised actuarial gains and losses (22) 611 (18) 352
Other comprehensive income not to be recognised in the statement of profit or loss in the future (22) 611 (18) 352
Attribution of changes in the equity of associates (18) 18
Total other comprehensive income not to be recognised in the statement of profit or loss in the future (40) 629 (18) 352
Total other comprehensive income after tax 13,087 (10,862) (4,267) (10,577)
Total comprehensive income for the year 159,002 125,690 126,245 82,229
Total comprehensive income attributable to:
Owners of the controlling company 148,854 124,256 126,245 82,229
Non-controlling interest 10,148 1,434

The accounting policies and notes form an integral part of these financial statements and should be read in conjunction therewith.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Statement of the financial position of the Petrol Group and Petrol d.d., Ljubljana

The Petrol Group

Petrol d.d.

(in EUR thousand)


2023

ASSETS

Non-current assets

Intangible assets 5.15 235,837 240,679 152,126 151,635
Right-of-use assets 5.16 162,099 130,838 32,429 29,524
Property, plant and equipment 5.17 849,017 867,570 365,068 365,945
Investment property 5.18 18,733 16,839 12,756 11,133
Investments in subsidiaries 5.19 - - 595,955 555,292
Investments in jointly controlled entities 5.20 342 350 233 233
Investments in associates 5.21 1,864 59,317 337 26,610
Fin. assets at fair value through other comprehensive income 5.22 27,850 3,994 25,628 2,118
Contract assets 5.28 4,664 5,182 - -
Loans 5.23 1,154 2,362 22,334 29,072
Operating receivables 5.24 7,626 8,468 7,621 8,452
Deferred tax assets 5.12 20,690 21,827 11,062 9,753

Total Non-current Assets

1,329,876

Current assets

Inventories 5.25 221,494 205,764

Financial Statement

Assets

Contract assets 5.28 617 871 5 212
Loans 5.26 1,081 775 46,828 38,642
Operating receivables 5.27 681,109 802,101 417,567 539,697
Corporate income tax assets 5.12 909 5,728 - -
Derivative financial instruments 5.29 25,962 26,547 17,782 24,022
Prepayments and other assets 5.30 109,220 130,114 47,765 68,415
Cash and cash equivalents 5.31 76,861 105,937 30,555 33,020
Total assets 1,117,253 1,277,837 708,624 819,963
2,447,129 2,635,263 1,934,173 2,009,730

EQUITY AND LIABILITIES

Equity attributable to owners of the controlling company
Called-up capital 52,241 52,241 52,241 52,241
Capital surplus 80,991 80,991 80,991 80,991
Legal reserves 61,988 61,988 61,750 61,750
Reserves for own shares 4,708 4,708 4,708 4,708
Own shares (4,708) (4,708) (2,605) (2,605)
Other profit reserves 341,328 293,492 353,699 316,608

Fair value reserve

2,903 2,283 43,424 42,782

Hedging reserve

14,218 6,078 11,391 15,733

Foreign currency translation reserve

(9,166) (9,455) - -

Retained earnings

429,734 402,974 65,196 46,343

Total equity

5.32 976,543 923,043 670,795 618,551

Non-current liabilities

Provisions for employee post-employment and other non-current benefits

5.33 7,983 7,561 6,396 5,935

Other provisions

5.34 44,618 34,880 40,159 30,836

Deferred income

5.35 38,918 39,806 30,046 29,521

Borrowings and other financial liabilities

5.36 254,380 347,037 260,948 300,682

Lease liabilities

5.37 130,942 99,759 29,461 27,579

Operating liabilities

5.38 442 531 442 531

Deferred tax liabilities

5.12 20,006 21,595 - -

Current liabilities

Other provisions


5.34

Deferred income 5.35 12,315 5,619 11,866 5,461
Borrowings and other financial liabilities 5.36 99,496 103,692 276,372 222,051
Lease liabilities 5.37 20,556 21,055 5,723 4,318
Operating liabilities 5.39 707,998 895,620 504,620 684,867
Derivative financial instruments 5.29 21,516 22,734 16,240 2,071
Corporate income tax liabilities 5.12 12,416 24,965 1,732 18,819
Contract liabilities 5.40 22,136 25,291 16,227 16,977
Other liabilities 5.41 71,631 49,274 59,404 38,134
Total liabilities 973,297
Total equity and liabilities 1,470,586
1,712,220
1,263,378
1,391,179
2,447,129
2,635,263
1,934,173
2,009,730

The accounting policies and notes form an integral part of these financial statements and should be read in conjunction therewith.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report 339

Statement of changes in equity of the Petrol Group

(in EUR thousand)

Called-up capital Capital surplus Profit reserves Fair value reserve Hedging reserve

Foreign currency translation reserve

Retained earnings

Equity attributable to owners of the controlling company

Non-controlling interest

Total

Legal reserves

Reserves for own shares

Own shares

Other profit reserves

As at 1 January 2023 52,241 80,991 61,988 4,708 (4,708) 299,826 1,811 17,827 (9,496) 323,577 828,765 31,401 860,166
Dividend payments for 2022 - - - - - (51,975) - - (9,692) (61,667) - (61,667)
Transfer of a portion of 2023 net profit - - - - - 46,403 - - (46,403) - - -
Increase/(decrease) in non-controlling interest - - - - - (762) - - - (762) (384) (1,146)
Transactions with owners - - - - - (6,334) - - - - - -

Financial Summary

Net profit for the current year

135,362

1,190

Other comprehensive income

472

(11,749)

41

130

(11,106)

244

(10,862)

Total comprehensive income

472

(11,749)

41

135,492

124,256

1,434

125,690

As at 31 December 2023

52,241 80,991 61,988 4,708 (4,708) 293,492 2,283 6,078 (9,455) 402,974 890,592 32,451 923,043

As at 1 January 2024

52,241 80,991 61,988 4,708 (4,708) 293,492 2,283 6,078 (9,455) 402,974 890,592 32,451 923,043

Dividend payments for 2023

(27,598)

(46,403) (74,001)
(74,001) Transfer of a portion of 2024 net profit
65,256
(65,256)
Increase/(decrease) in non-controlling interest
10,178 (1,385) 8,793
(40,293) (31,500) Transactions with owners
47,836 (1,385) (111,659) (65,208) (40,293) (105,501)
Net profit for the current year
138,420 138,420 7,495 145,915
Other comprehensive income
620 9,525 289
10,434 2,653 13,087
Total comprehensive income
620 9,525 289

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Statement of changes in equity of Petrol d.d., Ljubljana (in EUR thousand)

Called-up capital Capital surplus Profit reserves Fair value reserve Hedging reserve Retained earnings Total
As at 1 January 2023 52,241 80,991 61,750 4,708 (2,605) 322,181
Legal reserves Reserves for own shares Own shares Other profit reserves Total
42,539 26,640 9,545 597,990
Dividend payments for 2022 - - - - (51,975) -
- - - - - (9,692)
- - - - (61,667)
Transfer of a portion of 2023 net profit - - - - - 46,403
- - - - - (46,403)
Transactions with owners - - - - (5,572) -
- - - - (56,095) (61,667)
Net profit for the current year

The accounting policies and notes form an integral part of these financial statements and should be read in conjunction therewith.

For further details, please refer to Notes 5.19 and 5.32.

Other comprehensive income

92,806 92,806
243 (10,907) 87 (10,577)
Total comprehensive income - - - -
243 (10,907) 92,893 82,229

As at 31 December 2023

52,241 80,991 61,750 4,708 (2,605) 316,608 42,782 15,733 46,343 618,551

As at 1 January 2024

52,241 80,991 61,750 4,708 (2,605) 316,608 42,782 15,733 46,343 618,551

Dividend payments for 2023

- (27,598) - - (46,403) (74,001)

Transfer of a portion of 2024 net profit

- - 65,256 - - (65,256) -

Transactions with owners

- - - - -

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Statement of cash flows of the Petrol Group and Petrol d.d., Ljubljana

(in EUR thousand) Note 2024 2023 2024 2023
Cash flows from operating activities
Net profit or loss 145,915 136,552 130,512 92,806
Adjustments for:
Income tax expense 5.12 42,184 31,242

Net profit for the current year: 130,512

Other comprehensive income: (4,267)

Total comprehensive income: 126,245

As at 31 December 2024

Accumulated profit for 2024: 353,699

The accounting policies and notes form an integral part of these financial statements and should be read in conjunction therewith.

For further details, please refer to Note 5.32.

Depreciation of property, plant and equipment, investment property and right-of-use assets

Year Amount
2022 22,934
2021 15,563

Amortisation of intangible assets

Year Amount
2022 12,163
2021 13,040

(Gain)/loss on disposal of property, plant and equipment

Year Amount
2022 613
2021 (643)

Impairment/(reversed impairment) of PPE and inv. property

Year Amount
2022 -
2021 597

Impairment/(reversed impairment) of inventories

Year Amount
2022 1,784
2021 2,001

Revenue from assets under management

Year Amount
2022 (65)
2021 (65)

Net (decrease in)/creation of provisions for non-current employee benefits

Year Amount
2022 405
2021 190

Net (decrease in)/creation of other provisions

Year Amount
2022 2,165
2021 28,825

Net (decrease in)/creation of deferred income

Year Amount
2022 5,808
2021 723

Net goods surpluses

Year Amount
2022 (3,987)
2021 (3,915)

Net impairment/(reversed impairment) of financial and contract assets

Year Amount
2022 6,153
2021 (513)

Net finance (income)/expense

Year Amount
2022 8,501
2021 12,410

Impairment of investments

Year Amount
2022 1,841
2021 41

(Profit)/loss from the sale of an associate's share

Year Amount
2022 1,962
2021 -

Income Statement

(Income)/expense from the revaluation of the remaining share 5.3, 5.8 1,399 (11,544)
Share of profit of jointly controlled entities 5.10 (36) (44)
Share of profit of associates 5.10 (1,543) (3,680)
Income from dividends received from subsidiaries 5.10 (42,360) (1,588)
Income from dividends received from jointly controlled entities 5.10 (44) (931)
Income from dividends received from associates 5.10 (1,775) (1,247)
Cash flow from operating activities before changes in working capital 312,965 301,204 145,263 190,520
Net (decrease in)/creation of other liabilities 5.41 22,345 16,717 21,271 3,008
Net decrease in/(creation) of other assets 5.30 1,944 (24,495) 10,025 (14,981)
Change in inventories 5.25 (13,511) 60,995 (31,532) 34,934
Change in operating and other receivables and contract assets 5.27,5.28 136,130 82,678 134,382 41,056
Change in operating and other liabilities and contract liabilities 5.39,5.40 (177,018) (216,390) (165,964) (122,428)
Cash generated from operating activities 282,855 220,709 113,445 132,109
Interest paid 5.11 (26,961) (25,181) (22,878)

Cash Flows Statement

Net cash from (used in) operating activities

Taxes refunded/(paid) 5.12 (53,339) 10,987 (39,698) 11,161
Total 202,555

Cash flows from investing activities

Payments for inv. in subsidiaries, net of cash acquired 5.19 (2,000) (3,000) (2,050) (4,259)
Receipts from sale of intangible assets 5.15 438 981 427 678
Payments for intangible assets 5.15 (10,253) (11,196) (10,544) (9,717)
Receipts from sale of property, plant and equipment 5.17 5,839 6,765 424 2,859
Payments for property, plant and equipment 5.17 (55,144) (88,085) (31,933) (42,581)
Receipts from sale of investment property 5.18 - 8 - -
Payments for investment property 5.18 (855) (1,806) - (174)
Receipts from financial assets at fair value through other comprehensive income 5.22 - 309 - -
Receipts from loans granted 5.23,5.26 319 1,792 52,951 187,775
Payments for loans granted 5.23,5.26 (579) (2,152) (48,912) (153,943)
Interest received 5.11 19,175 15,904 14,797 12,124
Dividends received from subsidiaries 5.10 - - 13,686 -

Dividends received from jointly controlled entities

1,589

Dividends received from associates

5.10 2,040 1,350 1,775 1,247

Dividends received from others

5.10 367 205 147 95

Net cash from (used in) investing activities

(40,609) (77,994) (9,188) (3,376)

Cash flows from financing activities

Payments for bonds issued

5.36 (32,828) - (32,828) -

Lease payments

5.37 (20,743) (20,484) (5,390) (4,651)

Proceeds from borrowings

5.36 334,542 1,552,485 2,911,419 2,777,681

Repayment of borrowings

5.36 (398,014) (1,592,469) (2,843,443) (2,849,458)

Transactions with non-controlling interests

5.19 (50) (1,259) - -

Dividends paid to shareholders

5.32 (74,001) (61,667) (74,001) (61,667)

Net cash from (used in) financing activities

(191,094) (123,394) (44,243) (138,095)

Increase/(decrease) in cash and cash equivalents

(29,148) 5,127 (2,562) (18,045)

Changes in cash and cash equivalents

At the beginning of the year

105,937 100,963 33,020 51,203

Foreign exchange differences

72 (153) 25 (138)

Cash acquired through mergers by absorption

- -

NOTES ON THE FINANCIAL STATEMENTS

1. Reporting entity

Petrol d.d., Ljubljana (hereinafter the “Company”) is a company domiciled in Slovenia. Its registered office is at Dunajska cesta 50, 1000 Ljubljana. The consolidated financial statements comprise the Company and its subsidiaries, as well as the Group’s interests in associates and jointly controlled entities (together referred to as the “Group”). A more detailed overview of the Group’s structure is presented in the chapter Companies in the Petrol Group of the business report. Below we present the consolidated financial statements of the Group for the year ended 31 December 2024 and separate financial statements of the company Petrol d.d., Ljubljana for the year ended 31 December 2024.

2. Basis of preparation

a. Statement of compliance

The Company’s Management Board approved the Company’s financial statements and the Group’s consolidated financial statements on 2 April 2025. The financial statements of Petrol d.d., Ljubljana and the consolidated financial statements of the Petrol Group have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union, the interpretations of the IFRS Interpretations Committee, also adopted by the EU, and in accordance with the applicable law.

b. Basis of measurement

The Group’s and the Company’s financial statements have been prepared on the historical cost basis except for the financial instruments carried at fair value.

c. Functional and presentation currency

The financial statements in this report are presented in thousands of euros (EUR), except where explicitly stated to be presented in euros (EUR). The euro also being the Company’s functional currency. Due to rounding, some immaterial differences may arise in the sums presented in the tables. The financial statements provide comparative information in respect of the previous period.

d. Use of estimates and judgements

The preparation of the financial statements requires the management to make estimates and judgements based on the assumptions used and reviewed that affect the reported amounts of assets, liabilities, revenue and expenses. How the estimates are produced and the related assumptions and uncertainties are disclosed in the notes on individual items. The estimates, judgements and assumptions are reviewed on a regular basis. Because estimates are subject to subjective judgement and a degree of uncertainty, the actual results might differ from the estimates. Changes in accounting estimates, judgements and assumptions are recognised in the period in which the estimates are changed, if the change only affects that period. If the change affects future periods, they are recognised in the period of the change and in any future periods.

Estimates and assumptions are mainly used in the following judgements:

Leases (Policy 3.h)

In most cases, the lease term is stipulated in the contract. When the term is not specified, the Group/Company estimates the lease term by considering the assessment of the need to use the asset, taking into account its plans and the long-term business direction.

Revenue from contracts with customers

The Group/Company applied the following accounting judgements that significantly affect the determination of the amount and the recognition of revenue from contracts with customers:

  • Treatment of excise duty when selling petroleum products

The Group/Company accounts for excise duty when purchasing petroleum products, charging it to the end-customer when a sale is made. In the financial statements, excise

duty is not carried as part of the revenue or cost. The assessment is based on indicators that determine the nature of the duty and the appropriateness of its presentation, such as: the assessment of the basis of the calculation, the point of payment of the duty, the possibility of changing the selling price in the event of a change in the duty, and the risks associated with the value of the inventory of goods. Taking into account all the above indicators, the Group/Company concludes that the revenue from the sale of goods and the cost of goods are shown net of excise duties. In 2024, the Group’s excise duties totalled EUR 1,511,817 thousand and the Company’s EUR 844,966 thousand.

Estimating the useful lives of depreciable assets (Notes 5.15, 5.16, 5.17 and 5.18, Policies 3.e, 3.f, 3.g and 3.h)

When estimating the lives of assets, the Group/Company takes into account the expected physical wear and tear, the technical and economic obsolescence, as well as any expected legal restrictions and other restrictions of use. In addition, the Group/Company periodically checks the useful lives of significant assets; for example, if circumstances change significantly, resulting in the need to change the useful life and revalue the depreciation and amortisation costs.

An increase in the useful life of depreciable assets by 5 percent results in a decrease in depreciation and amortisation of EUR 3,193 thousand in 2024. A decrease in the useful life of depreciable assets by 5 percent results in an increase in depreciation and amortisation of EUR 3,289 thousand in 2024.

Asset impairment testing

Information on significant uncertainty estimates and critical judgments that were prepared by the management in the process of accounting policy implementation and that affect the amounts in the financial statements the most was used in the estimation of the value of:

  • investment property (Note 5.18),
  • goodwill (Note 5.15),
  • investments in subsidiaries (Note 5.19),
  • investments in jointly controlled entities and associates (Notes 5.20 and 5.21),
  • financial assets at fair value through other comprehensive income (Note 5.22),
  • loans granted (Notes 5.23 and 5.26).

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Parameters/assumptions applied in assessing asset values

The Group/Company assesses the value of its assets by:

  • discounting future free cash flows based on future expectations and assumptions as follows:
    • Future cash flows: reflect the expected demand for goods and are based on long-term financial plans approved by the Group’s management. The financial plans are prepared by analysing past periods and taking into account future development scenarios.
  • Discount rate: reflects the weighted average cost of capital and is calculated on the value assessment date based on a risk-free interest rate plus margins reflecting the risk of an asset.
  • Long-term growth rate: reflects the expected long-term growth of cash flows subsequent to the projection period and is assessed based on a company’s past operations and future macroeconomic developments.

using the market approach, which is based on the values of economic categories of comparable companies as at the value assessment date.

Estimation of the fair value of assets (Notes 5.22 and 5.29)

Fair value is used for financial assets measured at fair value through other comprehensive income, financial assets measured at fair value through profit or loss and for derivatives. All other items in the financial statements represent the cost or amortised cost.

In measuring the fair value of a non-financial asset, the Group/Company must take into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group/Company uses valuation techniques that are appropriate under the circumstances and for which sufficient data is available, especially by applying appropriate market inputs and minimum non-market inputs.

All the assets and liabilities measured and disclosed in the financial statements at fair value are classified within the fair value hierarchy based on the lowest level of input data that is significant to the fair value measurement as a whole:

  • Level 1 – quoted (unadjusted) prices in active markets for similar assets and liabilities
  • Level 2 – valuation techniques that are based directly or indirectly on market data
  • Level 3 – valuation techniques that are not based on market data.

For assets and liabilities disclosed in the financial statements in previous periods, the Group/Company determines at the end of each reporting period whether transfers have occurred between levels by re-assessing the classification of assets based on the lowest level input that is significant to the fair value measurement as a whole.

The fair value hierarchy of assets and liabilities of the Group/Company is presented in Note 6.7, whereas the guidelines for individual items in the financial statements are given in Point 3.o.

Estimate of provisions for lawsuits (Notes 5.34 and 8)

Several lawsuits have been filed against Group companies, for which the potential need for provisions is estimated on an ongoing basis. Provisions are recognised if, as a result of a past event, companies have a current legal or constructive obligation that can be estimated reliably, and if it is probable that an outflow of economic benefits will be required to settle the obligation.

Contingent liabilities are not disclosed in the financial statements because their actual existence will only be confirmed by the occurrence or non-occurrence of events in the unforeseeable future, which is beyond the control of Group companies.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

3. Material accounting policy information

The Group and Group companies applied the accounting policies set out below consistently to all the periods presented in these financial statements. Except for the newly adopted standards and interpretations specified below, the accounting policies used herein are the same as in the previous annual report.

Newly adopted standards and interpretations, for the Group and the Company, effective as of 1 January 2024

Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback (issued on 22 September 2022 and effective for annual periods beginning on or after 1 January 2024). The amendments relate to the sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale. The amendments require the seller-lessee to subsequently measure liabilities arising from the transaction and in a way that it does not recognise any gain or loss related to the right of use that it retained. This means deferral of such a gain even if the obligation is to make variable payments that do not depend on an index or a rate. The amendments to the Standards did not have a significant impact on the financial statements of the Group/Company.

Classification of liabilities as current or non-current – Amendments to IAS 1 (originally issued on 23 January 2020 and subsequently amended on 15 July 2020 and 31 October 2022, ultimately effective for annual periods beginning on or after 1 January 2024). These amendments clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Liabilities are non-current if the entity has a substantive right, at the end of the reporting period, to defer settlement for at least twelve months. The guidance no longer requires such a right to be unconditional. The October 2022 amendment established that loan covenants to be complied with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. Management’s expectations whether they will subsequently exercise the right to defer settlement do not affect classification of liabilities. A liability is classified as current if a condition.

Estimate of provisions for partial non-compliance pertaining to renewables (Note 5.34)

The Group’s/Company’s other provisions include provisions for partial non-compliance pertaining to renewables in transport (Decree on renewable energy sources in transport). The provisions were estimated by considering all the relevant circumstances regarding conformity with the required standards and legal aspects, and represent the management’s best estimate of how likely the outflow of economic benefits from the Group/Company is.

Estimate of provisions for employee post-employment and other long-term benefits (Notes 5.33 and 5.34)

Designated post-employment and other benefit obligations include the present value of post-employment benefits on retirement and jubilee benefits. They are recognised based on an actuarial calculation approved by the management. An actuarial calculation is based on the assumptions and estimates applicable at the time of the calculation, which may differ from the actual assumptions due to future changes. This mainly refers to determining the discount rate, the estimate of staff turnover, the mortality estimation and the salary increase estimate. Designated benefit obligations are sensitive to changes in the said estimates because of the complexity of the actuarial calculation and the item’s long-term nature. The assumptions are detailed in Notes 5.33 and 5.34.

Estimate of provisions for onerous contracts (Note 5.34)

Provisions for electricity are recorded under the provisions for onerous contracts. They are recognised on the basis of the calculation of the estimated economic benefits, agreed sales prices, and costs arising from electricity contracts. The current and forecasted market prices of electricity for the following year are used in the calculation. In the event of a 5 percent change in the purchase price profile of electricity for large and small business consumers, the provision for onerous contracts would change by EUR 2,789 thousand (2023: EUR 790 thousand) for the Group and EUR 2,235 thousand for the Company (2023: EUR 392 thousand).

Assessing the possibility of recognising deferred tax assets for carried-forward tax losses

The Group/Company recognises deferred tax assets for tax losses carried forward if it is probable that future taxable net profits will be available against which deferred tax assets can be utilised in the future. If the Group recognised all unrecognised deferred tax assets, the net profit and equity would increase by EUR 2,108 thousand (EUR 2,035 thousand as at 31 December 2023).

e. Change of financial statement presentation

In 2024, the Group/Company changed the presentation of individual non-material items in the financial position and income statements in order to ensure a more appropriate presentation. The changes also include a comprehensive adjustment of items for the comparative period 2023 on the same bases (Notes 5.9 and 5.29).

is breached ator beforethe reporting date evenif a waiver of that condition is obtained from the lender after the end of the reporting period. Conversely, a loan is classified as non-current if a loan covenant is breached only after the reporting date. In addition, the amendments include clarifying the classification requirements for debt a company might settle by converting it into equity. ‘Settlement’is defined as the extinguishment of a liability with cash, other resources embodying economic benefits or an entity’sown equity instruments. There is an exception for convertible instrumentsthat might be converted into equity, but onlyfor those instruments where the conversion option is classified as an equity instrument as a separate component of a compound financial instrument.

The amendments to the Standards didnot have a significantimpact on the financial statements of the Group/Company.

Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements

(Issued on 25 May 2023 and effective for annual periods beginning on or after 1 January 2024).

In response to concerns of the users of financial statements about inadequate or misleading disclosure of financing arrangements, in May 2023, the IASB issued amendments to IAS 7 and IFRS 7 to require disclosure about an entity’s supplier finance arrangements (SFAs). These amendments require the disclosures of the entity’s supplier finance arrangements that would enable the users of financial statements to assess the effects of those arrangements on the entity’s liabilities and cash flows and on the entity’s exposure to liquidity risk. The purpose of the additional disclosure requirements is to enhance the transparency of the supplier finance arrangements. The amendments do not affect recognition or measurement principles but only disclosure requirements.

The amendments to the Standards didnot have a significantimpact on the financial statements of the Group/Company.

a. Basis for consolidation

The Group’s consolidated financial statements comprise the financial statements of the controlling company and its subsidiaries.

Subsidiaries

The financial statements of subsidiaries are included in the Group’s consolidated financial statements from the date when control commences until the date when control ceases. The accounting policies of subsidiaries are aligned with the Group’s policies.

In the Company’s financial statements, investments in subsidiaries are accounted for at cost less impairment. The Company only recognises income from an investment to the extent that it originates from a distribution of the accumulated profits of the investee arising after the date of acquisition. If a company is merged, the difference between the investment and the net value of the acquired assets is recognised in other profit reserves, taking into account goodwill, if any.

The impairment of assets is detailed in Policy j2.

Investments in associates and jointly controlled entities

Associates are those entities in which the Group has a significant influence, but not control, over their financial and operating policies. Jointly controlled entities are those entities over whose activities the Group has joint control, established by contractual agreement and requiring unanimous consent for financial and operating decisions. Investments in associates and jointly controlled entities are initially recognised at cost but are subsequently accounted for using the equity method. The Group’s consolidated financial statements include the Group’s share of the profit and loss of equity-accounted associates and jointly controlled entities, after adjustments to align the accounting policies, from the date that significant influence commences until the date that significant influence ceases. When the Group’s share of losses of an associate or a jointly controlled entity exceeds its interest in such an entity, the carrying amount of the Group’s interest is reduced to zero and the recognition of further losses is discontinued.

The Company measures investments in associates and jointly controlled entities at cost less impairment.

b. Foreign currency translation

Foreign currency transactions

All foreign exchange differences are recognised in profit or loss, except for differences arising from the translation of the effective portion of the changes in the fair value of a grouped cash flow hedging instrument measured at fair value through other comprehensive income, which are recognised directly in other comprehensive income.

Financial statements of Group companies

The Group’s consolidated financial statements are presented in thousands of euros. Line items of each Group company that are included in the financial statements are translated, for the purpose of preparing consolidated financial statements, into the reporting currency as follows:

  • assets and liabilities from each statement of financial position presented, including goodwill, are translated at the ECB exchange rate at the reporting date;
  • revenue and expenses of foreign operations are converted to euros at the ECB average.

Financial Report

c. Financial assets

The Group’s/Company’s financial assets include cash and cash equivalents, receivables and loans, and investments. The Group/Company initially recognises loans, receivables and deposits on the date of their origin. All other financial assets are recognised initially on the trade date, which is the date the Group/Company becomes a party to the contractual provisions of the instrument.

The Group’s/Company’s financial instruments are classified on initial recognition, based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial asset acquired, into one of the following groups:

  • financial assets at the amortised cost
  • financial assets at fair value through other comprehensive income
  • financial assets at fair value through profit or loss

The impairment of financial assets is detailed in Note j1.

c1. Financial assets measured at amortised cost

The Group’s/Company’s financial assets at amortised cost include financial assets held under its business model in order to collect contractual cash flows when the cash flows are solely payments of principal and interest on the principal amount outstanding. This category includes loans, trade and other receivables and cash and cash equivalents.

c2. Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income that have the nature of an equity instrument are financial assets that meet the definition of equity under the IAS 32 Financial Instruments, which the Group/Company elected to classify irrevocably as equity instruments designated at fair value through other comprehensive income and that are not held for trading. The classification is determined on an instrument-by-instrument basis. The Group/Company elected to irrevocably classify its non-listed equity investments.

c3. Derivative financial instruments

Derivative financial instruments are initially recognised at fair value. Attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are accounted for as described below.

  • When a derivative is designated as a hedging instrument in the hedge of the variability in cash flows attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of the changes in the fair value of the derivative is recognised in other comprehensive income for the period and accumulated in the hedging reserve within equity. Any ineffective portion of the changes in the fair value of the derivative is recognised directly in profit or loss. If the hedging instrument no longer meets the criteria for hedge accounting or the hedging instrument is sold, terminated or exercised, then the Group/Company discontinues the hedge accounting. The cumulative gain or loss accumulated in the hedging reserve remains presented in the hedging reserve as long as the forecast transaction does not affect profit or loss. If the forecast transaction is no longer expected to occur, then the balance in the hedging reserve is reclassified immediately into profit or loss. In other cases, the amount recognised in other comprehensive income is transferred to profit or loss in the same period in which the hedged item affects profit or loss. The fair values of derivative financial instruments used for hedging purposes are disclosed in Notes 5.29 and 5.32. Movements in the hedge reserve in other comprehensive income are disclosed in Note 5.32.
  • The effects of other derivatives not designated as a hedging instrument in the hedge of the variability in cash flows or not attributable to a particular risk associated with a recognised asset or liability are recognised in profit or loss.

The Group/Company uses the following derivative financial instruments:

Currency forward contracts

The Group/Company purchases petroleum products in US dollars but primarily sells them in euros. Because purchases and sales are made in different currencies, mismatches occur between the purchase and selling prices that are hedged against using currency forward contracts by the Group/Company. The fair value of outstanding currency forward contracts at the date of the statement of financial position is determined by means of publicly available information about the value of currency forward contracts in a regulated market on the reporting date for all outstanding contracts. Gains and losses are recognised in operating profit or loss.

When a currency forward is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a recognised asset or liability or a forecast transaction, the effective portion of the gain or loss on the instrument is recognised directly in other comprehensive income. The ineffective portion of the gain or loss on the instrument is recognised in operating profit or loss under gains and losses from derivative financial instruments. The Group has currency forward contracts recognised both at fair value through profit or loss and in the hedging reserve. The Company only has them recognised at fair value through profit or loss.

Commodity derivatives

When petroleum products, natural gas and electricity are purchased or sold, mismatches occur between the purchase and selling prices that are hedged against using commodity derivatives by the Group/Company. The Group/Company uses commodity derivatives for trading, as laid out in the report.

down in its strategy and its electricity trading policy. As explained below the Group/Company has two separate portfolios of commodity derivatives, one at fair value through profit and loss and the other own use. For the first one, the so-called “Trading model” is used, and for the second one, the so-called “Retail model” is used. The material difference between the “Trading model” and “Retail model” in the case of physical contracts is that physical contracts are not concluded for the purpose of trading, but for the actual sale of electricity to end customers. Therefore, the booking of these transactions is carried out in accordance with IFRS 15. Until the physical contract is settled, it shall not be recognised. In accordance with IFRS 15, revenue and expenses from the sale of the cost value of the goods sold are booked and recognized only when the supply contract has been realized. To the extent that the physical sale of quantities and prices is not covered by the physical purchase of quantities and prices, and to the extent that there is an increase in the purchase price of electricity compared to the originally agreed price of electricity for sale, onerous contract provisions are formed for the loss disclosed in an individual contract. Both the retail and trading portfolios are clearly separated (by accounts and policies in place).

The fair value of outstanding commodity derivatives as at the date of the statement of financial position is determined using publicly available information about the market value of commodity derivatives as at the date of the statement of financial position as issued by relevant institutions. Gains and losses are recognised in operating profit or loss as gains and losses on derivative financial instruments.

If forward purchases and sales related to the physical delivery of electricity are considered contracts concluded in the ordinary course of business of the Group (“own use” contracts) they are not subject to the scope defined under IFRS 9. This applies when the following conditions are met:

  • the physical delivery of goods takes place based on the contract,
  • the quantities sold or purchased are consistent with the Group’s/Company’s business needs,
  • the contract is binding and cannot be considered optional.

Forward financial contracts which are not related to physical delivery in the electricity trade do not meet the above conditions and are treated by the Group/Company as financial instruments designated under IFRS 9. In the financial statements, revenue from the sale of goods and the costs of goods sold arising from commodity forward transactions are recognised at fair value. Outstanding contracts are remeasured to fair value at the date of the statement of financial position, and changes of the fair value are recognised as gains and losses on derivative financial instruments in the operating part of the statement of profit or loss.

When a commodity derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a recognised asset or liability or a forecast transaction, the effective portion of the gain or loss on the instrument is recognised directly in other comprehensive income. The ineffective portion of the gain or loss on an instrument is recognised in profit or loss as a gain or loss on the derivative financial instruments.

The effects of derivatives arising from physical contracts, not designated as hedges, in the case of cash flow variability exposure or failure of attribution to an individual risk, associated with a recognised asset or liability, are recognised in operating profit or loss as gains and losses on derivative financial instruments using net principle on individual contractual basis. The Group/Company has commodity derivatives (electricity, oil) recognised at fair value through profit or loss and in the hedging reserve.

Interest rate swaps and collars

Interest rates on loans received are exposed to a risk of interest rate fluctuations that is hedged against using interest rate swaps and collars. The fair value of outstanding interest rate swaps and collars at the date of the statement of financial position is determined by discounting future cash flows arising as a result of a variable interest rate (interest proceeds from a swap) and a fixed interest rate (payment of interest on a swap).

When an interest rate swap is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a recognised asset or liability or a forecast transaction, the effective portion of the gain or loss on the instrument is recognised directly in other comprehensive income. The ineffective portion of the gain or loss on the instrument is recognised in profit or loss as a finance income or expense.

The Group/Company has interest rate swaps recognised in the hedging reserve.

c4. Financial liabilities

The Group’s/Company’s financial liabilities include liabilities arising from debt securities issued and loans received. The Group/Company initially recognises debt securities issued on the date of origin. All other financial liabilities are recognised initially on the trading date, or when the Group/Company becomes party to the contractual provisions of the respective instrument. All financial liabilities are initially recognised at fair value. After initial recognition, borrowings are measured at the amortised cost using the effective interest rate method.

d. Equity

Called-up capital

The called-up capital of the controlling company, Petrol d.d., takes the form of share capital, the amount of which is laid down in the Company’s Articles of Association. It is registered with the Court and paid up by the owners.

Dividends

Dividends on ordinary shares are recognised as a liability in the period in which they were approved by the General Meeting.

Capital surplus

Capital surplus may be used under the conditions and for the purposes stipulated by law. Capital surplus consists of the general equity revaluation adjustment, which was transferred to capital surplus upon transition to the IFRS, and the capital surplus representing the excess of the disposal value over the carrying amount of own shares paid to the Company’s Supervisory Board members as a bonus.

Legal reserves

Legal reserves comprise shares of profit from previous years that have been retained for a dedicated purpose, mainly for offsetting eventual future losses. When created, they are recognised by the body responsible for the preparation of the annual report or by means of a resolution of a competent body.

In accordance with the Companies Act, legal reserves may be used in excess to increase the share capital from the assets of the company and to cover net and carried-forward losses, provided that the profit reserves are not used at the same time to pay out profits to shareholders.

Reserves for own shares

If the parent company or its subsidiaries acquire an ownership interest in the parent company, the amount paid, including transaction costs less tax, is deducted from the total equity in the form of own shares until such shares are cancelled, reissued or sold. If own shares are later sold or reissued, the consideration received is included in the capital surplus net of transaction costs and related tax effects.

Other profit reserves

At the time of drawing up the annual report, the Group/Company may establish other profit reserves of up to 50 percent of the net profit for the financial year. Other profit reserves may be used for any purpose in accordance with the law, the Articles of Association, the corporate policy and the resolutions of the General Meeting of Shareholders.

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Fair value reserve

The fair value reserve comprises the effects of valuing financial assets at fair value through other comprehensive income and actuarial gains and losses related to the provisions for employee post-employment and other long-term benefits.

Hedging reserve

The hedging reserve comprises the effect of changes in the fair value of derivative financial instruments designated as effective in hedging against the variability in cash flows.

e. Intangible assets

Goodwill

The Group’s goodwill is the result of business combinations. Goodwill is measured at cost less impairment. The Group measures the non-controlling interests in the acquiree at the proportionate share of the acquiree’s identifiable net assets. The Company’s goodwill arises on the upstream merger of a subsidiary. An upstream merger of a subsidiary to the controlling company is accounted for at the carrying amount of the assets in the top level of the Group. In the case of any goodwill arising from a business combination, goodwill is recognised at the Group’s cost. Any difference between the net assets of the merged company plus goodwill and the investment in the merged company is recognised in other profit reserves.

Right to use concession infrastructure

The Group/Company recognises an intangible non-current asset arising from a service concession arrangement when it has a right to charge for the usage of the concession infrastructure. An intangible non-current asset received as a consideration for providing construction or upgrade services in a service concession arrangement is measured at fair value upon initial recognition. Subsequent to the initial recognition, the intangible non-current asset is measured at cost less accumulated depreciation and any accumulated impairment losses. The duration of the right is linked to the duration of the concession agreement.

The Petrol Group

Register Number Country Concessions Description of the agreement Area

Slovenia

Concession agreements for heat generation and distribution

Heating systems

Concession agreement for the construction of a central wastewater treatment plant for the treatment of municipal wastewater and rainwater in the territory of individual municipalities

Slovenia

Natural gas

Concession agreement - distribution of natural gas

Agreement on the financing of the design, construction and operation of a gas distribution system and the performance of activities of general interest

Petrol d.d., Ljubljana

Register no. Concession period Duration of concessions Amount of revenue in 2024 in EUR thousand Amount of revenue in 2023 in EUR thousand Value of the concession fee for 2024 in EUR thousand Value of the concession fee for 2023 in EUR thousand
1 from 2003 to 2044 from 10 to 35 years 8,948 9,166 33 37
2 from 1999 to 2042 from 25 to 30 years 3,478 3,502 12 7
3 from 1994 to 2055 28 to 35.5 years 10,122 11,448 615 644

Emission allowances

Under intangible assets, the Group/Company recognises emission allowances for the management of plants that require a greenhouse gas emission permit.

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Other intangible assets

Other intangible fixed assets with finite useful lives are carried at cost less accumulated depreciation and accumulated impairment losses. The Group/Company mainly recognises computer software as material and other rights.

Amortisation

Amortisation is calculated on a straight-line basis, taking into account the useful life of intangible fixed assets. Emission allowances are not amortised as they are purchased on an annual basis and are used in the same way.

Amortisation rates for the current and comparative years are as follows:


f. Property, plant and equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, with the exception of land, which is measured at cost less accumulated impairment losses. Items of property, plant and equipment are subsequently measured using the cost model.

Depreciation

Depreciation is calculated on a straight-line basis, taking into account the useful life of each part (component) of an item of property, plant and equipment. Leased assets are depreciated by taking into account the lease term and their useful lives. Land is not depreciated. Construction work in progress is not depreciated.

Depreciation rates for the current and comparative periods are as follows:

(in %) 2024 2023
Construction facilities:
Facilities at service stations 2.50 - 10.00 2.50 - 10.00
Above ground and underground reservoirs 1.00 - 25.00 1.00 - 25.00
Underground service paths at service stations 5.00 - 14.30 5.00 - 14.30
Other facilities 1.50 - 16.67 1.50 - 16.67
Machinery:
Pump units at service stations 5.00 - 25.00 5.00 - 25.00
Supply wagons, tank wagons 25.00 25.00
Equipment:
Hardware and electronic equipment for maintenance of other equipment 10.00 - 25.00 10.00 - 25.00
Service station equipment 3.33 - 20.00 3.33 - 20.00
Motor vehicles 10.00 - 25.00 10.00 - 25.00
Computer hardware 15.00 - 25.00 15.00 - 25.00
Office equipment, furniture 6.70 - 16.10 6.70 - 16.10
Small tools 33.33 33.33
Environmental fixed assets 4.00 - 25.00 4.00 - 25.00

Depreciation rates vary due to the different useful lives of the individual construction facilities, machinery and equipment. The impairment of assets is detailed in Policy j2.

g. Investment property

Investment property is property held by the Group/Company either to earn rental income or for capital appreciation or for both. This is measured at cost less accumulated depreciation and accumulated impairment losses. The depreciation method and rates are the same as for property, plant and equipment. The impairment of assets is detailed in Policy j2.

The Group/Company considers as investment property all property held by the Group/Company that is fully or partially leased out to third parties. The Group’s/Company’s consideration takes into account the intended use of the property and the long-term goals pursued.

Property that is leased out as a whole is recognised as investment property based on separate records. The Group/Company recognises parts of the property that are leased out and constitute an integral part of the property used for the performance of core activities as investment property, insofar as that part of the property can be sold or leased separately from the rest of the property. If parts of the property cannot be sold separately, the property is only investment property if an insignificant part is used for the performance of the Group/Company’s core activity.

h. Leases

The Group/Company holds various items of business property (land, business premises and buildings), equipment and cars under a lease. Lease conditions are subject to negotiation on a case-by-case basis and vary depending on the term and type of the lease. The Group/Company assesses at contract inception whether a contract is, or contains, a lease. That is the case if the contract conveys the right to control the use of an identified asset for a period of time in exchange for a consideration.

Amortisation rates depend on the terms of the concession agreements.

Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

The impairment of assets is detailed in Policy j2.

The Group/Company determines the lease term based on the noncancellable period of a lease, taking into account the period covered by an option to extend the lease and the period covered by an option to terminate the lease. The Group/Company also assesses the probability of the above options.

The term of a lease depends on the type of the leased asset and the range:

  • from 5 to 30 years for land,
  • from 5 to 20 years for business premises and buildings,
  • from 1 to 10 years for equipment,
  • from 3 to 6 years for cars.

The Group/Company applies a single recognition and measurement approach for all leases, except for short-term leases whose lease term expires earlier than 12 months from initial use and leases of low-value assets. Low-value leases are leases of assets with an individual value of less than EUR 4,300 (the value of the new asset being leased is taken into account). With regards to the leases of low-value assets and short-term leases, the Group/Company records lease payments as an expense for the period to which the lease relates.

For all other leases, the Group/Company has recognised lease liabilities and right-of-use assets.

The Group/Company recognises right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised initially, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.

The depreciation rates of right-of-use assets are as follows:

(in %) 2024 2023
Land 3.33 - 20.00 3.33 - 20.00
Buildings 5.00 - 20.00 5.00 - 20.00
Equipment 10.00 - 100.00 10.00 - 100.00

i. Inventories

Inventories of merchandise and materials are measured at the lower of the cost and net realisable values. Damaged, expired and unusable inventories are written off regularly during the year on an item-by-item basis. The cost of inventory is determined under the moving average cost method for fuel stock and under the FIFO method for merchandise inventory.

j. Impairment

j1. Financial assets

In accordance with the IFRS 9, the Group/Company uses the expected credit loss model (for trade receivables, IFRS 15 assets under contracts with customers and loans) based on which the Group/Company not only recognises incurred losses but also expected future losses. Objective evidence that financial assets are impaired includes default or delinquency by a debtor, restructuring of an amount due to the Group/Company for which the Group/Company has granted its approval, indications that a debtor will enter bankruptcy, and the disappearance of an active market for an instrument. For an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment.

The Group and the Company use a simplified lifetime expected credit loss model to value receivables in accordance with the IFRS 9. The Expected Credit Loss (ECL) is calculated as the product of:

  • unsecured receivables from the partner, for the calculation of which credit insurance, bank guarantees, high-quality guarantees and mortgages (Earnings at Default – EAD) are taken into account as eligible collateral,
  • probability of default by the partner based on an internally developed model that takes into account the Group’s business data with the partner and the partner’s financial data (5 selected financial indicators with statistically strong explanatory power), the external credit rating of the country in which the partner is domiciled and the estimated cyclicality of the industry in which the company operates (Probability of Default – PD).

Impairment assessment is based on expected credit losses (ECLs) linked to a default on receivables and loans that is possible within the next 12 months, unless there has been a significant increase in credit risk since initial recognition. In such a case, the impairment assessment is determined based on the probability of default over the lifetime of the financial asset (LECL). ECLs are based on the difference between the contractual cash flows due in

j2. Non-financial assets

On each reporting date, the Group/Company reviews the carrying amounts of significant non-financial assets to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.

The Group/Company determines the recoverable amount of an asset using the present value method of expected cash flows, which is based on the multi-year future financial plans of cash-generating units approved by the Supervisory Board. The assumptions used in the calculation of the net cash flows (long-term growth rate of cash flows, cash flow projection, projection period and discount rate) are based on past operations and reasonably expected operations in the future. Cash flow projection periods reflect the operations and investment activities of individual companies. Growth rates of free cash flows are based on the expected price growth rates.

In the case of points of sale, the Group/Company defined that it checks for indications of impairment at the level of the point-of-sale network rather than at the level of individual points of sale. Based on an analysis of the interdependence of individual points of sale, the Group/Company determined that identifying the point-of-sale network in an individual country as a level at which to check for signs of impairment was the most appropriate approach. If there are indications of impairment at the level of the point-of-sale network, the impairment is carried out at the level of the individual point-of-sale.

Impairment of investments in subsidiaries

Based on internal and external sources of information, the Company verifies on a regular basis whether there is an indication that investments in subsidiaries may be impaired. The Company determines the recoverable amount using the same method as for other non-financial assets.

k. Provisions

The amount of the provisions is determined as the present value of payments that the Group/Company will be expected to make based on the contracts it has concluded and the applicable legislation. To determine the amount, the Group/Company relies on actuarial methods and on opinions provided by legal experts.

Significant provisions include:

Provisions for employee post-employment and other non-current benefits

Pursuant to the law, the collective agreement and the internal rules, the Group/Company is obligated to pay its employees jubilee benefits and post-employment benefits on retirement, for which it has established long-term provisions. The business cooperation agreements entered into by Group companies with service station operators stipulate that the rights of employees at third-party operated service stations to jubilee benefits and post-employment benefits on retirement are equal to the rights of Group company employees. The contractual obligation of Group companies to reimburse the costs arising from such rights to service station operators represents a basis for the recognition of long-term provisions. Other obligations related to employee post-employment benefits do not exist.

The provisions amount to the estimated future payments for post-employment benefits on retirement and jubilee benefits discounted to the end of the reporting period. The calculation is performed separately for each employee by taking into account the costs of the post-employment benefits on retirement and the costs of all the expected jubilee benefits until retirement. The calculation using the projected unit credit method is performed by a certified actuary. Post-employment benefits on retirement and jubilee benefits are charged against the provisions created.

Labour costs and costs of interest are recognised in the statement of profit or loss, whereas

Financial Report

Provisions for lawsuits

The Group/Company makes provisions based on estimates by professional services or external legal advisers of the likely outcome of lawsuits. The appropriateness of the provisioning is examined on a case-by-case basis, taking into account the amount of the claim, the subject matter of the lawsuit, the allegations made by the claimant and the course of the individual proceedings. Several lawsuits have been filed against the Group and Group companies for which the potential need for provisions is estimated on an ongoing basis.

Provisions for onerous contracts

The Group/Company creates provisions for onerous contracts when the market situation causes the costs of meeting contractual obligations to exceed the expected economic benefit of long-term contracts. The provisions are determined based on the estimated purchasing and selling price levels and quantities, taking into account the costs to sell and general and administrative costs.

Deferred income

Government and other subsidies received to cover costs are recognised as a decrease in the corresponding costs. Subsidies received as compensation for assets are recognised strictly as income over the periods in which the costs that they are intended to compensate are incurred. The income, or the decrease in costs, is recognised when it can be reasonably expected that it will result in receipts or where it is sufficiently certain that no unfulfilled conditions exist.

Revenue from contracts with customers

Revenue from contracts with customers is recognised once the control of goods or services is transferred to a customer in an amount that reflects the consideration the Group/Company expects to be entitled to in exchange for such goods or services. Revenue from contracts with customers is recognised at the fair value of the consideration received or receivable, net of returns and discounts, trade discounts and volume rebates. Revenue is recorded when the customer obtains control of the goods or benefits from the services rendered.

Sale of goods

Sales revenue includes revenue from the sale of petroleum products, LPG and other alternative energies (compressed natural gas), electricity, natural gas, revenue from the sale of merchandise (foodstuffs, tobacco products, lottery, vouchers and cards, Coffee to Go, Fresh products, car cosmetics and spare parts), biomass, tyres, tubes and batteries. A sale of goods is recognised when the Group/Company delivers goods to a customer, the customer accepts the goods, and the collectability of the related receivables is reasonably assured. As of the sale, the Group/Company no longer has control of the goods or services sold. Sales revenue does not include duties paid upon the purchase and upon the sale of the goods.

With respect to contracts on the supply of electricity or natural gas, the Group/Company transfers control over time, while the customer receives and uses benefits deriving from the Group’s/Company’s performance obligation as the latter is satisfied. For measuring revenue over time the Group/Company uses the output method. Revenue from the sale of electricity also includes revenue from the sale of electricity generated by solar, wind and hydropower plants, as well as the sale of other energy produced by Energy and solutions. Revenue from transportation services is presented and recognised as a separate performance obligation in service revenue.

Sale of services

Revenue from services includes transportation, storage and fuel handling revenue, income from payment cards, car wash revenue, revenue from natural gas distribution, revenue from the maintenance and servicing of charging mobile stations and revenue from installation service for solar power plants. A sale of services is recognised according to input method which measures progress towards satisfying performance obligation indirectly, based on consumed resources in proportion to total expected resources.

For long-term projects, the revenue from services rendered is recognised based on the stage of completion (cost-to-cost method) as at the balance sheet date. Under this method, the revenue is recognised in the accounting period in which the services are rendered. The percentage of completion is based on the costs incurred to the estimated total cost to complete the project.

Instalment sales

In instalment sales, the Group/Company immediately recognises revenue from the sale of goods and finance income deferred over the entire contract term. The finance income is assessed based on discounted future cash flows flowing to the Group/Company. The Group/Company mainly sells built solar power plants and heat pumps in instalments.

Sales in the name and for the account of third parties

The Group/Company also sells merchandise to customers that is the direct property of the suppliers at the time of sale. Under contracts with customers and suppliers, the Group/Company receives, in return for brokering the sale, a pre-agreed difference between the final selling price and the purchase price, which the Group/Company recognises in sales revenue - merchandise and services segment.

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Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. The Group’s/Company’s contract assets include accrued revenue from goods and services delivered to customers.

Trade receivables

A receivable is the Group’s/Company’s right to an amount of consideration that is unconditional (i.e. only the passage of time is required before the payment of the consideration is due). See the accounting policies on the recognition of financial assets in the Financial assets section.

Contract liabilities

A contract liability is an obligation to transfer goods or services to a customer for which the Group/Company has received consideration. The Group’s/Company’s contract liabilities include the liabilities from prepayments received and liabilities arising from the loyalty scheme. Contract liabilities are recognised as revenue when the Group/Company satisfies its performance obligation.

Variable consideration

Variable consideration refers to volume rebates granted to customers. The Group/Company provides retrospective volume rebates to certain customers once the quantity of products purchased during the period exceeds a threshold specified in the contract. Rebates are offset against amounts payable by the customer. To estimate the variable consideration for the expected future rebates, the Group/Company applies the most likely amount method for contracts with the expected value method. The selected method that best predicts the amount of variable consideration is primarily driven by the number of volume thresholds contained in the contract. The Group/Company then applies the requirements on constraining estimates of variable consideration and recognises a refund liability for the expected future rebates.

n. Finance income and expenses

Finance income comprises interest income on financial assets, positive exchange rate differences and gain on interest rate swaps. Interest income is recognised as it accrues using the effective interest rate method. Dividend income is recognised in the Company’s statement of profit or loss on the date that a shareholder’s right to receive payment is established. Finance expenses comprise borrowing costs (unless capitalised), foreign exchange losses, and loss on interest rate swaps. Borrowing costs are recognised in profit or loss using the effective interest method.

o. Determination of fair value

The methods of determining the fair values of individual groups of assets for measurement or reporting purposes are described below.

Receivables and loans

The fair value of receivables and loans is calculated as the present value of future cash flows, discounted at the market rate of interest at the end of the reporting period. The estimate takes into account the credit risk associated with these financial assets.

Derivative financial instruments

  • The fair value of forward contracts equals their market price on the reporting date.
  • The fair value of interest rate swaps at the reporting date is assessed by discounting future cash flows arising from the variable interest rate (interest received from a swap) and the fixed interest rate (interest paid under a swap).
  • The fair value of commodity derivatives equals their market price on the reporting date, which is determined using publicly available information about the market value of commodity derivatives as at the date of the statement of financial position as issued by relevant institutions.

Non-derivative financial liabilities

For reporting purposes, fair value is calculated using the present value of future payments of the principal and interest, discounted at the market rate of interest at the end of the reporting period.

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p. Earnings per share

Because the Group/Company has no convertible bonds or share options granted to employees, its basic earnings per share are the same as its diluted earnings per share. The basic earnings per share are calculated by dividing the profit or loss attributable to the owners of the controlling company by the weighted average number of ordinary shares during the period.

r. Operating segments

An operating segment is a component of the Group that engages in business activities from which it earns revenue and incurs expenses that relate to transactions with any of the Group’s other components. Segments differ from one another in terms of risks and returns. Their results are reviewed regularly by the Management Board (Chief Operating Decision Maker) to make decisions about the resources to be allocated to a segment and assess the Group’s performance.

The Group uses the following segments in the preparation and presentation of its financial statements:

  • fuels and petroleum products,
  • merchandise and services,
  • energy and solutions, and
  • other.

s. Statement of cash flows

The section of the statement of cash flows referring to operating activities has been drawn up using the indirect method based on data derived from the statement of financial position as at 31 December 2023 and 31 December 2024 and data derived from the statement of profit or loss for the period January to December 2024. Interest paid on loans is allocated to cash flows from operating activities, while the default interest received in connection with operating receivables and interest received on loans are allocated to cash flows from investing activities. Dividends paid are allocated to cash flows from financing activities and dividends received are classified as investing cash flows.

New standards and interpretations relevant for the Group and the Company, but not yet effective

The standards and interpretations disclosed below have been issued but were not yet effective as of the date of issuance of the consolidated/separate financial statements. The Group/Company intends to adopt these standards and interpretations, if applicable, when drawing up its financial statements when they become effective. The Group/Company did not adopt any of the standards early.

Amendments to IAS 21 Lack of Exchangeability

(Issued on 15 August 2023 and effective for annual periods beginning on or after 1 January 2025).

In August 2023, the IASB issued amendments to IAS 21 to help entities assess exchangeability between two currencies and determine the spot exchange rate, when exchangeability is lacking. An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. The amendments to IAS 21 do not provide detailed requirements on how to estimate the spot exchange rate. Instead, they set out a framework under which an entity can determine the spot exchange rate at the measurement date. When applying the new requirements, it is not permitted to restate comparative information. It is required to translate the affected amounts at estimated spot exchange rates at the date of initial application, with an adjustment to retained earnings or to the reserve for cumulative translation differences. The Group/Company does not expect the aforementioned amendments to have an impact on its consolidated or separate financial statements.

Amendments to the Classification and Measurement of Financial Instruments

Amendments to IFRS 9 and IFRS 7 (issued on 30 May 2024 and effective for annual periods beginning on or after 1 January 2026).

On 30 May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to:

  • (a) clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
  • (b) clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
  • (c) add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and
  • (d) update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).

The Group/Company has been reviewing the impact of the amendments to the Standard and will take them into account upon its implementation.

Annual Improvements to IFRS Accounting Standards

(Issued in July 2024 and effective from 1 January 2026).

IFRS 1 clarified that a hedge should be discontinued upon transition to IFRS Accounting Standards if it does not meet the ‘qualifying criteria’, rather than ‘conditions’ for hedge accounting, in order to resolve a potential confusion arising from an inconsistency between the wording in IFRS 1 and the requirements for hedge accounting in IFRS 9. IFRS 7 requires disclosures about a gain or loss on derecognition relating to financial assets in which the entity has a continuing involvement, including whether fair value measurements included ‘significant unobservable inputs’. This new phrase replaced reference to ‘significant inputs that were not based on observable market data’. The amendment makes the wording consistent with IFRS 13. In addition, certain IFRS 7 implementation guidance examples were clarified and text added that the examples do not necessarily illustrate all the requirements in the referenced paragraphs of IFRS 7. IFRS 16 was amended to clarify that when a lessee has determined that a lease liability has been extinguished in accordance with IFRS 9, the lessee is required to apply IFRS 9 guidance to recognize any resulting gain or loss in profit or loss. This clarification applies to lease liabilities that are extinguished on or after the beginning of the annual reporting period in which the entity first applies that amendment. In order to resolve an inconsistency between IFRS 9 and IFRS 15, trade receivables are now required to be initially...

recognised at ‘the amount determined by applying IFRS 15’ instead of at ‘their transaction price (as defined in IFRS 15)’. IFRS 10 was amended to use less conclusive language when an entity is a ‘de-facto agent’ and to clarify that the relationship described in paragraph B74 of Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report.

IFRS 10 is just one example of a circumstance in which judgement is required to determine whether a party is acting as a de-facto agent. IAS 7 was corrected to delete references to ‘cost method’ that was removed from IFRS Accounting Standards in May 2008 when the IASB issued amendment ‘Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate’. The Group/Company has been examining the impact of the amendments to the Standard and will take them into account upon its implementation.

Contracts Referencing Nature-dependent Electricity

Amendments to IFRS 9 and IFRS 7 (Issued on 18 December 2024 and effective from 1 January 2026).

The IASB issued amendments to help companies better report the financial effects of nature-dependent electricity contracts, which are often structured as power purchase agreements (PPAs). Current accounting requirements may not adequately capture how these contracts affect a company’s performance. To allow companies to better reflect these contracts in the financial statements, the IASB has made targeted amendments to IFRS 9, Financial Instruments, and IFRS 7, Financial Instruments: Disclosures. The amendments include:

  • clarifying the application of the ‘own-use’ requirements;
  • relaxing certain hedge accounting requirements if these contracts are used as hedging instruments;
  • adding new disclosure requirements to enable investors to understand the effect of these contracts on financial performance and cash flows.

The Group/Company has been reviewing the impact of the amendments to the Standard and will take them into account upon its implementation.

IFRS 18 Presentation and Disclosure in Financial Statements

(Issued on 9 April 2024 and effective for annual periods beginning on or after 1 January 2027).

In April 2024, the IASB issued IFRS 18, the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:

  • the structure of the statement of profit or loss;
  • required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity’s financial statements (that is, management-defined performance measures); and
  • enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its ‘operating profit or loss’. IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information. The Group/Company has been reviewing the impact of the amendments to the Standard and will take them into account upon its implementation.

IFRS 19 Subsidiaries without Public Accountability: Disclosures

(Issued on 9 May 2024 and effective for annual periods beginning on or after 1 January 2027).

The International Accounting Standard Board (IASB) has issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries’ financial statements while maintaining the usefulness of the information for users of their financial statements. Subsidiaries using IFRS Accounting Standards for their own financial statements provide disclosures that may be disproportionate to the information needs of their users. IFRS 19 will resolve these challenges by:

  • enabling subsidiaries to keep only one set of accounting records – to meet the needs of both their parent company and the users of their financial statements;
  • reducing disclosure requirements – IFRS 19 permits reduced disclosure better suited to the needs of the users of their financial statements.

The Group/Company has been reviewing the impact of the amendments to the Standard and will take them into account upon its implementation.

4. Segment reporting

In view of the fact that the financial report consists of the financial statements and accompanying notes of both the Group and the Company, only the Group’s operating segments are disclosed.

An operating segment is a component of the Group that engages in business activities from which it earns revenue and incurs expenses that relate to transactions with any of the Group’s other components. The results of the operating segments are reviewed regularly by the Management Board (Chief Operating Decision Maker) to make decisions about the resources to be allocated to a segment and assess the Group’s performance.

Segment reporting is presented in more detail in the business section of the report in the Chapters Performance analysis of the Petrol Group 2024 and Operations by product groups. The Management Board monitors data in four segments.

The Group uses the following segments in both the drawing up and presentation of its financial statements:

  • fuels and petroleum products,
  • merchandise and services,
  • energy and solutions,
  • other.

Fuels and petroleum products include:

  • the sales of petroleum products,
  • the sales of liquefied petroleum gas and other alternative energy commodities,
  • the transport, storage and handling of fuels,
  • revenue from payment cards,
  • the sales of biomass,
  • the sales of tyres, inner tubes and batteries.

Merchandise and services include:

  • the sales of foodstuffs, haberdashery, tobacco products, lotteries, coupons and cards,
  • the sales of Coffee To Go and Fresh products,
  • the sales of car cosmetics, spare parts and car wash services,
  • sales promotion and other services, and
  • catering facility rentals.

Energy and solutions include:

  • the sales and trading of electricity and natural gas,
  • the sales of energy solutions,
  • the sales of heating systems,
  • the distribution of natural gas,
  • mobility and
  • the generation of energy commodities.

Other includes:

  • mining services,
  • maintenance services,
  • vacation rentals.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

The Group’s operating segments in 2023:

(in EUR thousand) Fuels and petroleum products Merchandise and services Energy solutions Other Total profit or loss
Revenue from contracts with customers 4,356,063 571,925 3,412,083 14,753 8,354,824
Revenue from subsidiaries (936,954) (706) (426,608) (7,879) (1,372,147)
Revenue from contracts with customers 3,419,109 571,219 2,985,475 6,874 6,982,677
Cost of goods sold (3,065,293) (406,420) (2,832,220) (1,176) (6,305,108)
Gross profit 353,817 164,799 153,255 5,698 677,569
Operating profit or loss 53,432 41,952 76,232 3,994 175,611
Depreciation of PPE, right-of-use assets, inv. property and amortisation of intangible assets (48,133) (20,298) (28,277) (775) (97,483)
EBITDA 101,002 60,836 106,589 4,154 272,581
Depreciation and amortisation (97,483)
Net impairment (losses)/gains on financial and contract assets 513
Share of profit or loss of equity accounted investees 3,724
Net finance expenses (11,541)
Profit/(loss) before tax 167,794

The Group’s operating segments in 2024:

(in EUR thousand) Fuels and petroleum products Merchandise and services Energy solutions Other Total profit or loss
Revenue from contracts with customers 4,153,889 637,324 2,586,648 12,626 7,390,487
Revenue from subsidiaries (934,471) (997) (334,920) (8,419) (1,278,808)
Revenue from contracts with customers 3,219,418 636,327 2,251,727 4,207 6,111,679
Cost of goods sold (2,868,562) (442,421) (2,070,329) (5,381,312)
Gross profit 350,856 193,906 181,398 4,207 730,367
Operating profit or loss 95,021 58,709 52,656 1,795 208,181
Depreciation of PPE, right-of-use assets, inv. property and amortisation of intangible assets (49,665) (29,025) (20,085) (1,091) (99,866)
EBITDA 145,564 78,556 87,179 2,901 314,200
Depreciation and amortisation (99,866)
Net impairment (losses)/gains on financial and contract assets (6,153)
Share of profit or loss of equity accounted investees 1,579
Net finance expenses (21,661)
Profit/(loss) before tax 188,099

EBITDA and gross profit are alternative performance measures and not defined by IFRS. It can be calculated differently by different parties.

EBITDA = Operating profit + Net impairment (losses)/gains on financial and contract assets + Depreciation and amortisation charge.

Gross profit = Sale revenue – Cost of goods sold.

Assets and net investments are not disclosed by segment but by geographical area, as reviewed by the Management Board.

Additional information about the geographical areas in which the Group operates:

Revenue from contracts with customers

Total assets

Net investments

31 December

31 December

(in EUR thousand) 2024 2023 2024 2023 2024 2023
Slovenia 2,823,082 3,458,019 1,422,337 1,542,385 44,508 46,668
Croatia 1,242,291 1,172,473 750,468 759,107 11,387 35,389
Austria 240,593 301,541 4,935 4,646 - -
Bosnia and Herzegovina 200,216 235,041 84,192 97,069 758 (723)
Serbia 173,194 144,085 122,030

Montenegro 62,906 55,911 34,459 32,967 1,316 125
Romania 2,270 6,071 26 587 - -
Macedonia 8,699 3,316 3,835 235 - -
Other countries 1,358,428 1,606,220 1,951 1,938 - -
Total 6,111,679
Total 6,982,677
Total 2,424,233
Total 2,553,770
Total 60,126
Total 82,935
Jointly controlled entities 342 350

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Associates 1,864 59,317
Unallocated assets 20,690 21,827
Total assets 2,447,129 2,635,263

For the purpose of presenting geographical areas, revenue generated in a particular area is determined based on the geographical location of customers, whereas the assets are determined based on the geographical location of assets.

Unallocated assets refer mainly to deferred tax assets.

Net investments are acquisitions and disposals of property, plant and equipment, intangible assets and non-current investments of the Group in subsidiaries, jointly controlled entities and associates.

5. Notes on individual items in the financial statements

5.1 Business combinations

Geoplin d.o.o. Ljubljana

On November 7, 2024, following the fulfilment of suspensive conditions, Petrol d.d., Ljubljana, and the Republic of Slovenia, represented by Slovenski državni holding d.d. in accordance with the Act on Slovenian Sovereign Holding (ZSDH-1), completed the second step of the share exchange agreement involving Geoplin d.o.o. Ljubljana and Plinhold d.o.o. The share exchange agreement was initially signed on July 14, 2016. In the first step Petrol d.d., Ljubljana became the majority shareholder of Geoplin d.o.o. Ljubljana, while the Republic of Slovenia became the majority shareholder of Plinovodi d.o.o. (later restructured into Plinhold d.o.o.). However, the Republic of Slovenia retained a 25.01% ownership interest in Geoplin d.o.o. Ljubljana.

Pursuant to the agreed terms of the share exchange with the Republic of Slovenia, on November 7, 2024, Petrol d.d., Ljubljana acquired the 25.01% ownership interest in Geoplin d.o.o. Ljubljana in exchange for a 16.98% interest in Plinhold d.o.o. The exchange was carried out based on the agreed exchange ratio, which was determined using valuations of both companies conducted by an authorized business valuation expert in 2016. The acquired ownership interest was recognized in the Company’s financial statements and the Group’s consolidated statements at fair value, while the divested interest was derecognized at its carrying value. The remaining interest in Plinhold d.o.o. was revalued to its fair value. For the valuation of the business share of Geoplin d.o.o. Ljubljana, an external independent appraiser used the discounted cash flow method, with a required rate of return of 11.30%. For the valuation of the business share of Plinhold d.o.o., an external independent appraiser used the summation method, with a required rate of return of 7.16% and a residual value growth rate of 2.10%.

Effects of the Exchange of Business Shares in the Company

The Company realized financial income of EUR 15,118 thousand from the derivative financial instrument or the difference between the fair values of both investments on the date of the forward contract execution. After the forward settlement, the Company derecognized the disposed part of the investment in the associate Plinhold d.o.o. and recognized operating income of EUR 15,412 thousand for the difference to the fair value of the acquired share in Geoplin d.o.o. The remaining share in Plinhold d.o.o. was classified by the Company as a financial asset under IFRS9, measured at fair value through other comprehensive income, and upon remeasurement of its fair value in accordance with IAS 28, recognized operating income of EUR 11,544 thousand.

Effects of the Exchange of Business Shares in the Group

The Group recognized an increase in other reserves from profit of EUR 9,822 thousand and a decrease in the hedge reserve of EUR 1,385 thousand for the difference between the fair value of the acquired share in Geoplin d.o.o. Ljubljana and the reduction of non-controlling interest. From the sale of the share in Plinhold d.o.o., the Group realized a loss recognized among other expenses in the amount of EUR 1,962 thousand, and from the remeasurement of the remaining share in Plinhold d.o.o. (12.91% share) to its fair value, operating expenses in the amount of EUR 1,399 thousand.

As of December 31, 2024, the Group held a 99.35% ownership interest in Geoplin d.o.o. Ljubljana (with 99.55% voting rights). The ownership interest in Plinhold d.o.o. was reduced to 12.91% for the Group and 12.72% for the Company.

5.2 Changes within the Group

In 2024, Petrol d.d. acquired an additional ownership interest in Petrol Power d.o.o. Sarajevo, thus becoming a 100 percent owner of the company.

At the end of March 2024, Geoplin d.o.o. Ljubljana liquidated Geoplin d.o.o. Beograd.

In May 2024, MBills d.o.o. was renamed to Petrol Pay d.o.o..

In July 2024, Ekoen d.o.o. and Ekoen S d.o.o. were merged into Petrol d.d., Ljubljana, with an effective merger date of January 1, 2024. The merger had no impact on the Group’s financial statements, as Petrol d.d., Ljubljana was the sole owner of both companies. However, it had an impact on the Company's financial statements and the difference between the net asset value of the upstream merger and the investment was recognised as a reduction in profit reserves in the amount of EUR 567 thousand.

In July 2024, Vjetroelektrana Ljubač d.o.o. was merged into Vjetroelektrane Glunča d.o.o.. The merger had no impact on the Group’s financial statements, as Vjetroelektrane Glunča d.o.o., a subsidiary of Petrol d.d., was the sole owner of Vjetroelektrana Ljubač d.o.o.

In August 2024, Tigar Petrol d.o.o. Beograd was merged into Petrol LPG d.o.o.. The merger had no impact on the Group’s financial statements, as Petrol LPG d.o.o., a subsidiary of Petrol d.d., was the sole owner of Tigar Petrol d.o.o. Beograd.

In 2024, Petrol d.o.o. Beograd established two subsidiaries: Petrol Lumennis SU JO d.o.o. Beograd and Petrol Lumennis MI JO d.o.o. Beograd, which operate in the Energy and solutions segment. Petrol d.o.o. Beograd is the 100 percent owner of both companies.

In 2023, Petrol d.d. acquired an additional 23 percent interest in Atet d.o.o., thus becoming a 100 percent owner of the company.

In July 2023, GEOCOM d.o.o. was merged into Geoplin d.o.o. Ljubljana with an effective date on 1 January 2023. The upstream merger had no impact on the Group’s financial statements as Geoplin d.o.o., a subsidiary of Petrol d.d., Ljubljana was its sole owner.

In 2023, Atet d.o.o. established a subsidiary, Atet Mobility Zagreb d.o.o., which operates in the Energy and solutions segment. Atet d.o.o. is the 100 percent owner of the company.

5.3 Revenue from contracts with customers

Revenue by type of good and by timing of revenue recognition

The Petrol Group Petrol d.d.
(in EUR thousand) (in EUR thousand)
2024 2023 2024 2023
Revenue from the sale of goods 6,003,232 6,857,962 4,304,638 5,198,823
Revenue from the sale of services 108,447 124,715 96,944 104,306
Total revenue 6,111,679 6,982,677

Revenue recognised at a point in time

4,401,582 5,303,129

Revenue recognised over time

4,534,806 4,786,235 3,814,997 4,244,318

Revenue by sales market

The Petrol Group

Petrol d.d.

(in EUR thousand)

2024 2023 2024 2023
Domestic sales revenue 2,823,082 3,458,019 2,520,049 3,062,854
EU market sales revenue 2,587,980 2,851,417 1,712,323 2,008,072
Non-EU market sales revenue 700,617 673,241 169,210 232,203
Total revenue 6,111,679 6,982,677 4,401,582 5,303,129

Revenue by operating segment

The Petrol Group

Petrol d.d.

(in EUR thousand) 2024 2023 2024 2023
Fuels and petroleum products 3,219,418 3,419,109 2,670,633 2,883,562
Merchandise and services 636,327 571,219 412,427 390,976
Energy and solutions 2,251,727 2,985,475 1,307,718 2,018,196
Other 4,207 6,874 10,804 10,395
Total revenue 6,111,679 6,982,677 4,401,582 5,303,129

The Group’s/Company’s revenue includes rental income. In 2024, the Group generated EUR 6,441 thousand in rental income (2023: EUR 5,994 thousand) and the Company EUR 4,267 thousand (2023: EUR 3,664 thousand).

Based on the IFRS 15 Revenue from Contracts with Customers, for the agent-principal model, excise duties and similar levies or fees are recognised with the net presentation in the financial statements as the Company and its subsidiaries act as an “agent” and collect the excise duties from third parties for the benefit of the government. The total amount of the excise duty collected from customers was EUR 1,511,817 thousand in 2024.

Other income

The Petrol Group

Petrol d.d.


Income Statement

(in EUR thousand) 2024 2023 2024 2023
Income from grants, EU projects and other 9,493 7,704 5,762 5,579
Compensations received from insurance companies 1,401 472 888 67
Compensation, lawsuits, contractual penalties received 1,013 472 531 304
Gain on disposal of plan, property and equipment 786 2,104 344 1,130
Repayment of court fees 99 131 80 89
Profit from the sale of an associate's share - - 15,412 -
Income from the revaluation of the remaining share - - - -

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

5.4 Costs of materials

The Petrol Group Petrol d.d.
2024 2023 2024 2023
Costs of energy 41,884 55,770 34,137 46,232
Costs of consumables 12,680 8,664 9,224 5,609
Write-off of small tools 242 120 77 41
Other costs of materials 997 1,062 532 619
Total costs of materials 55,803 65,616

5.5 Costs of services

The Petrol Group

Petrol d.d.

(in EUR thousand) 2024 2023 2024 2023
Cost of transport services 44,426 42,635 34,862 33,360
Costs of service station managers 29,223 37,407 29,223 37,407
Costs of fixed-asset maintenance services 28,903 28,528 20,466 20,446
Cost of intellectual services 18,653 12,536 11,558 8,558
Costs of payment transactions and bank services 16,075 15,045 10,276 9,342
Lease payments 14,814 12,779

Costs Overview

Costs of subcontractors 10,425 10,283 9,794 9,478 8,205 8,840
Costs of fairs, advertising and entertainment 9,084 7,357 5,832 5,161
Costs of insurance premiums 6,583 6,414 3,892 3,764
Costs of fire protection, physical and technical security 2,642 2,222 2,022 1,694
Costs of environmental protection services 2,535 2,671 1,600 1,736
Reimbursement of work-related costs to employees 1,730 1,400 1,001 803
Membership fees 654 641 224 224
Property management 515

Costs of Services

Other costs of services 4,576 6,440 2,656 3,570
Total costs of services 190,207 186,253 142,763 145,844

The Petrol Group

The costs of intellectual services include the costs of services performed by the auditors of the annual report of EUR 522 thousand (2023: EUR 446 thousand). Auditing services comprise the auditing fee of the annual report of EUR 506 thousand (2023: EUR 432 thousand). Other, non-auditing services, stood at EUR 16 thousand in 2024 (2023: EUR 13 thousand).

Petrol d.d., Ljubljana

The costs of intellectual services include the costs of services performed by the auditors of the annual report of EUR 313 thousand (2023: EUR 125 thousand). Auditing services comprise the auditing fee of the annual report of EUR 301 thousand (2023: EUR 114 thousand). Other, non-auditing services, stood at EUR 12 thousand in 2024 (2023: EUR 12 thousand).

Lease Expenses

Petrol Group Petrol d.d.
(in EUR thousand) 2024 2023 2024 2023
Depreciation of right-of-use assets 24,731 23,511 5,772 4,966
Finance expenses 4,672 4,114 1,519 1,346

Lease expenses

2024 2023 2024 2023
14,814 12,779 10,425 10,283

Total recognised costs/expenses

2024 2023 2024 2023
44,217 40,404 17,716 16,595

The Group’s/Company’s lease expenses include expenses for current leases, leases of low-value assets and leases with variable lease payments.

5.6 Labour costs

The Petrol Group

Petrol d.d.

(in EUR thousand) 2024 2023 2024 2023
Salaries 131,066 119,526 85,509 79,496
Costs of other social insurance 11,695 10,662 6,499 5,855
Expense for defined contribution plan 9,251 8,695 7,584 7,201
Meal allowance

Number of employees by formal education level as at 31 December 2023

The Petrol Group Petrol d.d.
Employees at third-party managed service stations Total employees Employees at third-party managed service stations Total
Level I 40 7 47 18 7 25
Level II 80 19 99 33 19 52
Level III 113 4 117 14 4 18
Level IV 1,602 229 1,831 377 229 606
Level V 1,873 496 2,369 900 496 1,396
Level VI 328 54 382 188 54 242
Level VII 779 37 816 516 37 553
Level VII/2 260 10 270 199 10 209

Commuting allowance

6,154

4,953

3,910

2,999

Annual leave allowance

5,846

4,993

3,059

2,210

Supplementary pension insurance

5,494

4,428

4,491

3,412

Other allowances and reimbursements

2,929

2,190

2,808

2,062

Total labor costs

6,648

5,116

2,966

1,781

179,083

160,563

116,826

105,016

Number of employees by formal education level as at 31 December 2024

The Petrol Group

Petrol d.d.

Level I 51 11 62 31 11 42
Level II 89 10 99 31 10 41
Level III 123 2 125 20 2 22
Level IV
Total 5,089 856 5,945 2,252 856 3,108

Current Page Data

Level Value 1 Value 2 Value 3 Value 4 Value 5
Level V 1,569 192 1,761 401 192
593 Level VI 1,995 406 2,401
984 406 1,390 Level VII 314
28 342 172 28 200
Level VII/2 1,086 45 1,131 772 45
817 Level VIII 10 - 10
- - 13 - 8

5.7 Depreciation and amortisation

The Petrol Group Petrol d.d.
(in EUR thousand) 2024 2023 2024 2023
Depreciation of property, plant and equipment 61,675 59,847 32,011 31,444
Depreciation of right-of-use assets 24,731 23,511 5,772 4,966
Amortisation of intangible assets 12,163 13,040 9,626 9,376
Depreciation of investment property 1,297 1,085 712 654
Total depreciation and amortisation 99,866

On average, the Group and the Company had 5,943 and 2,435 employees in 2024, respectively (2023: 6,006 for the Group and 2,145 for the Company).

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

5.8 Other costs

The Petrol Group

Petrol d.d.

(in EUR thousand) 2024 2023 2024 2023
Environmental charges and charges unrelated to operations 7,166 7,544 4,707 4,976
Net impairment (losses)/gains on financial and contract assets 6,153 (513) (1,011) 619
Sponsorships and donations 2,567 2,631 1,650 2,446
Loss from the sale of an associate's share 1,962 - - -
Impairment of investment/goodwill 1,733 - 3,639 -

Loss on sale/disposal of PPE

1,399 1,461 310 313

Expense from the revaluation of the remaining share

1,399 - - -

Impairment of inventories

680 2,001 669 1,987

Net impairment of financial assets at fair value through OCI

108 41 108 -

Impairment of PPE

- 597 - 597

Other costs (reversal of other provisions and other liabilities)

3,839 37,589 6,501 23,795

Total other costs

27,006 51,351 16,573 34,733

In 2024, among other expenses, the Group incurred EUR 4,543 thousand (EUR 3,742 thousand in the Company) related to the recognition of current provisions for onerous contracts with customers for the supply of electricity. The Group reversed part of the current provisions created.

In 2023, among other costs, EUR 11,838 thousand in the Group (EUR 3,397 thousand in the Company) relates to the costs of recognising current provisions from onerous contracts with customers for the supply of electricity and natural gas and EUR 17,854 thousand in the Group/Company relates to the cost of recognition of non-current provisions for partial non-compliance pertaining to renewable energies in transport.

5.9 Gain/(Loss) on derivatives

The Petrol Group

Petrol d.d.

(in EUR thousand) 2024 2023 2024 2023
Gain on commodity derivatives 116,691 207,170 120,797 207,415
Gain on currency forward contracts 23,814 9,235 22,811 8,888
Total gain from derivative fin. instruments 140,505 216,405 143,608 216,303
Loss on commodity derivatives (115,337) (153,889) (111,723) (152,231)
Loss on currency forward contracts (7,333) (13,797) (6,046) (9,571)
Total loss from derivative fin. instruments (122,670) (167,686) (117,769) (161,803)
Gain/(Loss) on derivatives 17,835

5.10 Interests and dividends

Shares of the profit or loss of equity-accounted investees of the Petrol Group

The Petrol Group (in EUR thousand) 2024 2023
Plinhold d.o.o. 892 2,519
Aquasystems d.o.o. 398 909
Knešca d.o.o. 253 252
Total net profit of associates 1,543 3,680
Soenergetika d.o.o. 36 44
Total net profit of jointly controlled entities 36 44
Total net finance income from interests 1,579 3,724

Income from dividends paid by subsidiaries, associates and jointly controlled entities of Petrol d.d., Ljubljana

Petrol d.d.

(in EUR thousand) 2024 2023
Petrol d.o.o. 19,872 -
E 3, d.o.o. 6,000 -
Petrol BH Oil Company d.o.o. Sarajevo 3,469 -
Zagorski metalac d.o.o. 3,075 -
Petrol GEO d.o.o. 1,952 -
Petrol Hidroenergija d.o.o. 1,912 701
Petrol Crna Gora MNE d.o.o. 1,633 -
Geoplin d.o.o. Ljubljana 1,467 -
Beogas d.o.o. Beograd 1,211 -
Petrol Trade Handelsgesellschaft m.b.H. 1,199 888
IGES d.o.o. 427 -
STH Energy d.o.o. Kraljevo 143 -

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

5.11 Finance income and expenses

The Petrol Group

Petrol d.d.

(in EUR thousand) 2024 2023 2024 2023
Total subsidiaries 42,360 1,589 Aquasystems d.o.o. 914
Plinhold d.o.o. 861 342 Total associates 1,775
Soenergetika d.o.o. 44 931 Jointly controlled entities 44
Total income from interests 44,179 3,767 Foreign exchange differences 38,360
46,447 35,304 Interest income from interest rate swaps 10,862

Interest income 11,051 8,686 9,216 7,648
Income from the exchange of shares - - 15,118 -
Other finance income 367 289 373 206
Total finance income 57,237 62,738 64,086 57,446
Foreign exchange differences (51,520) (45,578) (48,278) (41,945)
Interest expense (26,404) (26,441) (24,454) (23,933)
Other financial expenses (974) (2,260) (970) (1,686)
Total finance expenses (78,898)

5.12 Income tax expenses

The Petrol Group

Petrol d.d.

(in EUR thousand)

2024 2023 2024 2023
Current tax expense (46,267) (31,323) (23,205) (19,539)
Deferred tax 4,083 81 271 3,976
Taxes (42,184) (31,242) (22,934) (15,563)

Details regarding the exchange of shares are disclosed in Note 5.1.

Profit/(loss) before tax

Year 1 Year 2 Year 3 Year 4
Profit/(loss) before tax 188,099 167,794 153,446 108,369
Tax at the Company's nominal tax rate 41,382 31,881 33,758 20,590
Tax effect of tax-free income (16,670) (2,933) (13,875) (2,598)
Tax effect of expenses not deducted on the current tax assessment 21,099 6,416 3,051 (472)
Effect of a changed tax rate on deferred taxes - (2,919) - (1,957)
Effect of higher/lower tax rates for companies abroad (3,627) (1,203) - -
Taxes 42,184 31,242 22,934 15,563
Effective tax rate 22.43 % 18.62 % 14.95 %

14.36 %

As at 31 December 2024, the Group has a corporate income tax receivable of EUR 909 thousand (2023: EUR 5,728 thousand) and EUR 12,416 thousand in income tax liabilities (2023: EUR 24,965 thousand). The Group does not offset the assets and liabilities, as they represent a receivable from or a liability to different tax administrations.

In Slovenia, the nominal corporate income tax rate stood at 22 percent in 2024 (2023: 19 percent), whereas the Group’s tax rates ranged from 9 to 24 percent.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Changes in deferred taxes of the Petrol Group

Deferred tax assets

(in EUR thousand) Investments Provisions Allowance for rec. and impairment of assets Inventories Tax loss amortisation liabilities Other Total
As at 1 January 2023 3,583 2,152 8,801 1,176 9,168 5,173 14,178 228 44,459
Netting (26,268)
Total net receivables as at 1 January 2023 18,191
(Charged)/credited to the statement of profit or loss 21 844 638 (1,123) (4,647) 2,468 840 236 (724)
(Charged)/credited to other comprehensive income 771 - - - - - - - 771
Foreign exchange differences - - - - - - - 1 1
As at 31 December 2023 4,374 2,997 9,438 53 4,521 7,640 15,017 465 44,505
Netting (22,679)
Total net receivables as at 31 December 2023 21,827
(Charged)/credited to the statement of profit or loss 239 (767) 526 84 2,472 903 5,021 (202) 8,276
(Charged)/credited to other comprehensive income (3,002) - - - - - - - (3,002)
Foreign exchange differences - - (2) - - - - - (2)
As at 31 December 2024 1,611 2,230 9,962 137 6,993 8,543 20,038 263 49,777
Netting (29,087)
Total net receivables as at 31 December 2024 20,690

Deferred tax liabilities

(in EUR thousand) Investments Fixed assets Right-of-use assets Other Total
As at 1 January 2023 6,492 26,182 14,178 99 46,951
Netting (26,268)
Total net liabilities as at 1 January 2023 20,683
Charged/(credited) to the statement of profit or loss - (1,117) 410 (99) (806)
Charged to other comprehensive income (1,882) - - - (1,882)
Foreign exchange differences - 11 - - 11
As at 31 December 2023 4,610 25,076 14,588 0 44,274
Netting (22,679)
Total net liabilities as at 31 December 2023 21,595
Charged/(credited) to the statement of profit or loss - (741) 4,899 35 4,193
Charged to other comprehensive income 629 - - - 629
Foreign exchange differences - (3) - - (3)
As at 31 December 2024 5,239 24,332 19,487 35 49,093
Netting (29,087)
Total net liabilities as at 31 December 2024 20,006

Within deferred tax liabilities, the Group recognises deferred tax liabilities for fixed assets from property, plant and equipment, intangible assets and right-of-use assets.

Changes in deferred taxes of Petrol d.d., Ljubljana

Deferred tax assets

(in EUR thousand) Investments Provisions Allowance for receivables amortisation Other Total
As at 1 January 2023 400 807 4,581 5,120 23 10,931
Netting (6,944)
Total net receivables as at 1 January 2023 3,987

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

5.13 Earnings per share

The Petrol Group

Net profit attributable to owners of the controlling company (in EUR thousand) 2024 2023
Net profit 138,420 135,362
Number of shares issued 41,726,020 41,726,020

Petrol d.d.

Net profit attributable to owners of the controlling company (in EUR thousand) 2024 2023
Net profit 130,512 92,806
Number of shares issued 41,726,020 41,726,020

Deferred tax liabilities

(in EUR thousand) Investments Fixed assets Total
As at 1 January 2023 6,483 461 6,944
Netting (6,944)
Total net liabilities as at 1 January 2023 -
(Charged)/credited to the statement of profit or loss - (461) (461)
(Charged)/credited to other comprehensive income (1,882) - (1,882)
As at 31 December 2023 4,601 - 4,601
Netting (4,601)
Total net liabilities as at 31 December 2023 -
(Charged)/credited to other comprehensive income (1,039) - (1,039)
As at 31 December 2024 3,562 - 3,562
Netting (3,562)
Total net liabilities as at 31 December 2024 -

Pillar II Rules

Based on Pillar II, the EU Directive, and consequently the Slovenian legislation transposing the directive, Petrol d.d., with its registered office in Ljubljana, is subject to the global minimum tax. The GMT applies to financial years starting from 31 December 2023, with the first reporting year starting in 2026.

Calculations for the year 2024 have shown that the obligation for the global minimum tax, amounting to EUR 66 thousand, primarily pertains to the jurisdiction of Bosnia and Herzegovina.

The Company is part of the advisory body of the Financial Administration of the Republic of Slovenia and also cooperates with external tax experts.

41,726,020

Number of own shares at the beginning of the year

614,460

Number of own shares at the end of the year

614,460

Weighted average number of ordinary shares issued

41,111,560

Diluted average number of ordinary shares

41,111,560

Basic and diluted earnings per share attributable to owners of the controlling company (EUR/share)

3.37

The basic earnings per share are calculated by dividing the net profit attributable to the owners of the controlling company by the weighted average number of ordinary shares, excluding ordinary shares owned by the Company/Group. The Group and the Company have no potential dilutive ordinary shares, meaning the basic and diluted earnings per share are identical. Petrol’s shares are traded on the prime market of the Ljubljana Stock Exchange (LJSE) under the PETG symbol.

5.14 Other comprehensive income

The Petrol Group

The effective portion of the changes in the fair value of the cash flow variability hedging instrument increased by EUR 15,620 thousand (in 2023: decrease of EUR 14,186 thousand) and decreased by the impact of deferred tax of EUR 3,444 thousand (in 2023: an increase of EUR 2,675 thousand). The change relates to interest rate swap hedging, commodity derivative financial instruments and currency forward contracts and impacting to the hedging reserve. The balance and movement of the hedging reserve is explained in Note 5.32.

Unrealised actuarial gains and losses relate to provisions for post-employment benefits on retirement.

Petrol d.d., Ljubljana

The effective portion of the changes in the fair value of the cash flow variability hedging instrument decreased by EUR 5,567 thousand (in 2023: decrease of EUR 12,718 thousand) and increased by the impact of deferred tax of EUR 1,225 thousand (in 2023: an increase of EUR 1,811 thousand). The change relates to interest rate swap hedging, commodity derivative financial instruments and impacting to the hedging reserve. The balance and movement of the hedging reserve is explained in Note 5.32.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

5.15 Intangible assets

Intangible assets of the Petrol Group

(in EUR thousand) Material and other rights Right to use infrastructure Concession Goodwill Ongoing investments Emission allowances Total
Cost As at 1 January 2023 60,395 126,473 160,685 5,857 1,185 354,595
New acquisitions 255 172 - 9,111 2,565 12,104
Disposals (6,297) (879) - (245) (1,589) (9,011)
Transfers between intangible assets 14 (16) - - 1 -
Transfers between PPE - - - (1,807) - (1,807)
Transfer from ongoing investments 4,186 827 - (5,013) - -
Foreign exchange differences 2 2 17 2 - 24
As at 31 December 2023 58,556 126,579 160,703 7,905 2,162 355,905
Accumulated amortisation
As at 1 January 2023 (41,441) (67,864) - - - (109,306)
Amortisation (7,808) (5,232) - - - (13,040)
Disposals 6,244 878 - - - 7,122
Transfers between intangible assets (1) 1 - - - -
Foreign exchange differences (1) (1) - - - (3)
As at 31 December 2023 (43,007) (72,218) - - - (115,226)
Net carrying amount
As at 1 January 2023 18,954 58,609 160,685 5,857 1,185 245,289
As at 31 December 2023 15,549 54,361 160,703 7,905 2,162 240,679
(in EUR thousand) Material and other rights Right to use infrastructure Concession Goodwill Ongoing investments Emission allowances Total
Cost As at 1 January 2024 58,556 126,579 160,703 7,905 2,162 355,905
New acquisitions 359 101 - 9,793 - 10,253
Disposals (152) (195) - (9) (419) (775)
Impairments - - (1,733) - - (1,733)
Transfers between PPE - 3,709 - 32 - 3,741
Transfers between right-of-use assets - (15,498) - - - (15,498)
Transfer from ongoing investments 10,164 962 - (11,126) - -
As at 31 December 2024 68,927 115,658 158,970 6,595 1,743 351,893
Accumulated amortisation
As at 1 January 2024 (43,007) (72,218) - - - (115,226)
Amortisation (7,300) (4,863) - - - (12,163)
Disposals 152 185 - - - 337
Transfers between PPE - (320) - - - (320)
Transfers between right-of-use assets - 11,315 - - - 11,315
As at 31 December 2024 (50,155) (65,901) - - - (116,056)
Net carrying amount
As at 1 January 2024 15,549 54,361 160,703 7,905 2,162 240,679
As at 31 December 2024 18,772 49,757 158,970 6,595 1,743 235,837

All intangible assets presented herein are the property of the Group and are unpledged.

23.72 percent of all the intangible assets in use on 31 December 2024 were fully amortised (compared to 17.7 percent as at 31 December 2023).

Under intangible assets, the Group records emission allowances for the management of plants that require a greenhouse gas emission permit. For more information, please refer to the respective note relating to the Company.

The Group’s intangible fixed assets were tested for impairment as at 31 December 2024, and it was determined that goodwill needed to be impaired. The Group recognized an impairment of goodwill for the companies Atet d.o.o., Crodux Plin d.o.o., Petrol Pay d.o.o., and Adria Plin d.o.o. in the total amount of EUR 1,733 thousand.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Goodwill

The goodwill structure presented by the business combination from which it originates is as follows:

The Petrol Group (in EUR thousand) 31 December 2024 31 December 2023
Instalacija d.o.o., Koper¹ 85,266 85,266
Petrol d.o.o.² 69,338 69,338
Vjetroelektrana Ljubač d.o.o. 2,580 2,580
Atet d.o.o. 1,427 2,435
Vjetroelektrane Glunča d.o.o. 358 358
Crodux Plin d.o.o. - 263
Petrol Pay d.o.o. - 245
Adria-Plin d.o.o. - 217
Total goodwill 158,970 160,703

¹ Instalacija d.o.o. was merged into Petrol d.d., Ljubljana in 2013 and is treated as a cash-generating unit of Petrol d.d., Ljubljana.

² Petrol d.o.o. is a single cash-generating unit that includes goodwill arising from the merger of the following companies: Euro-Petrol d.o.o., Petrol-Jadranplin d.o.o., Petrol Butan d.o.o., and Crodux derivati dva d.o.o.

In accordance with the IAS 36, goodwill was tested for impairment as at 31 December 2024, and it was determined that impairment was necessary. The Group recognized an impairment of goodwill for the companies Atet d.o.o., Crodux Plin d.o.o., Petrol Pay d.o.o., and Adria Plin d.o.o. in the total amount of EUR 1,733 thousand.

Impairment of Goodwill

Impairment of goodwill is recognised when its carrying amount exceeds its recoverable amount. The recoverable amount of goodwill is the greater of its value in use and its fair value less costs to sell. The impairment test used value in use, where the estimated future cash flows are discounted to their present value using a discount rate.

The recoverable amount of the acquired assets was assessed at the aggregate level of the acquired companies, except for Instalacija d.o.o. and Vjetroelektrana Ljubač d.o.o., where the recoverable amount was assessed at the level of the cash-generating unit directly related to the assets acquired during the acquisition of the companies.

Goodwill was tested for impairment using the present value method of expected cash flows, which are based on the future financial plans of cash-generating units (value in use method). The assumptions used in the calculation of the net cash flows (non-current growth rate of cash flows, cash flow projection, projection period and discount rate) are based on past operations and reasonably expected operations in the future. Cash flow projection periods reflect the operations and investment activities of individual companies. Growth rates of free cash flows are based on the expected price growth rates.

Instalacija d.o.o.

For Instalacija d.o.o., the 4-year financial plans of the cash-generating unit, the required rate of return of 8.89 percent after taxes (2023: 8.81 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 2.0 percent (2023: 1.92 percent) were used in testing the goodwill for impairment.

Petrol d.o.o.

For Petrol d.o.o., the 5-year financial plans of the cash-generating unit, the required rate of return of 10.20 percent after taxes (2023: 9.43 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 2.0 percent (2023: 2.0 percent) were used in testing the goodwill for impairment. The testing of Petrol d.o.o.’s goodwill comprises goodwill arising from the upstream merger of Euro-Petrol d.o.o., Petrol-Jadranplin d.o.o., Petrol-Butan d.o.o. and Crodux derivati dva d.o.o..

Atet d.o.o.

For Atet d.o.o., the 5-year financial plans of the cash-generating unit, the required rate of return of 9.0 percent after taxes (2023: 7.5 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 2.0 percent (2023: 2.0 percent) were used in testing the goodwill for impairment.

Petrol Pay d.o.o.

For Petrol Pay d.o.o., the 5-year financial plans of the cash-generating unit, the required rate of return of 13.9 percent after taxes (2023: 14.6 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 2.0 percent (2023: 2.0 percent) were used in testing the goodwill for impairment. The cash flow projection period is based on plans for the development and growth of the company up to the period when the cash flows are expected to stabilise in the long term.

Vjetroelektrane Glunča d.o.o.

For Vjetroelektrane Glunča d.o.o., the 24-year financial plans of the cash-generating unit and the required rate of return of 9.5 percent after taxes (2023: 11.77 percent) were used in testing the goodwill for impairment. The value of the remaining cash flows was not taken into account in the calculation. The cash flow projection period corresponds to the life of the existing wind power plants and the concession agreement.

Vjetroelektrana Ljubač d.o.o.

For Vjetroelektrana Ljubač d.o.o., the 22-year financial plans of the cash-generating unit and the average required rate of return of 9.5 percent after taxes (2023: 11.77 percent) were used in testing the goodwill for impairment. The value of the remaining cash flows was not taken into account in the calculation. The cash flow projection period corresponds to the life of the existing wind farms and the concession agreement.

Adria-Plin d.o.o.

For Adria-Plin d.o.o., the 6-year financial plans of the cash-generating unit, the required rate of return of 10.27 percent after taxes (2023: 11.02 percent) and the annual growth rate of the remaining free cash flows (the residual value) of 2.0 percent (2023: 2.0 percent) were used in testing the goodwill for impairment.

Effect of Changes in Key Assumptions

The effect of changes in the discount rate or the non-current growth rate of the remaining free cash flows on the estimated fair value of assets is presented below:

In 2023 Key assumptions Change in key assumptions Effect of change in the discount rate Effect of change in the non-current growth rate

Effect on discount rate on the growth rate

Discount rate (WACC) Non-current growth rate (g)
+ 0,5 - 0,5
Adria-Plin d.o.o. (32) (21)
11.02% - 0,5 + 0,5
35 24
(50) 63

Atet d.o.o. 7.50% 2% - 0,5 + 0,5 1,045 1,060 2,340
Petrol d.o.o. (Crodux derivati dva d.o.o. in Euro-Petrol d.o.o.) 9.43% 2% - 0,5 + 0,5 (38,712) (27,751) (62,647)
Instalacija d.o.o., Koper - 0,5 + 1,0 (19,411) (8,644) (25,897)

8.81% 2% - 1,0 + 0,5 25,982 9,997 40,199
- + 0,5 - 0,5 (111) (118) (221) -
Petrol Pay d.o.o. 14.60% 2% - 0,5 + 0,5 120 128 258
- + 0,5 - (1,543) - (1,543) -
Vjetroelektrane Glunča d.o.o. 11.77% - - 0,5 - 1,634 - 1,634
- + 0,5 -

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Key assumptions

Change in key assumptions Effect of change in the discount rate Effect of change in the non-current growth rate Effect on Non-current impairment when recoverable
Vjetroelektrana Ljubač d.o.o. 11.77% - -
0,5 2,245 - 2,245

Recoverable Key Assumptions

Company WACC (%) g (%) Amount Change + 0.5 - 0.5
Adria-Plin d.o.o. 10.27% 2% 6 - (560) (1,027)
5 (532) (2,034)
Atet d.o.o. 9.00% 2% 645 726

1,490 - + 0,5 - 0,5
(21,578) (11,609) (31,386) -
Petrol d.o.o. 10.20% 7% - 0,5
+ 0,5 24,377 12,984 39,951
- + 0,25 - 0,5
(5,316) (8,723) (13,412) -
Instalacija d.o.o., Koper 8.89% 2% - 0,25
+ 0,5 5,717 10,090 16,677
- + 0,5 - 0,5
(71) (96) (161) -
Petrol Pay d.o.o. 13.90%

Vjetroelektrane Glunča

3% - 0,5 + 0,5 78 104 190
- (1,330) - (1,330) - d.o.o.
9.49% - - 0,5 - 1,406 -
1,406 - Vjetroelektrana Ljubač + 0,5 - (2,437)
- (2,437) - d.o.o. 9.49% -
- 0,5 - 2,590 - 2,590 -

Intangible assets of Petrol d.d., Ljubljana

Non-current

(in EUR thousand) Material and other rights Concession infrastructure Goodwill Ongoing investments Deferred costs and emission allowances Total
Cost As at 1 January 2023 44,279 113,143 85,266 3,697 1,173 247,559
New acquisitions - 112 - 8,130 2,383 10,625
Disposals (5,603) (195) - - (1,585) (7,384)
Transfers between intangible assets - (1) - - 1 -
Transfer from ongoing investments 4,116 810 - (4,926) - -
As at 31 December 2023 42,793 113,868 85,266 6,901 1,972 250,800
Accumulated amortisation
As at 1 January 2023 (32,420) (63,167) - - - (95,586)
Amortisation (5,312) (4,064) - - - (9,376)
Disposals 5,603 195 - - - 5,798
As at 31 December 2023 (32,129) (67,036) - - - (99,163)
Net carrying amount
as at 1 January 2023 11,860 49,977 85,266 3,697 1,173 151,972
as at 31 December 2023 10,664 46,832 85,266 6,901 1,972 151,635

Non-current

(in EUR thousand) Material and other rights Concession infrastructure Goodwill Ongoing investments Deferred costs and emission allowances Total
Cost As at 1 January 2024 42,793 113,868 85,266 6,901 1,972 250,800
New acquisitions - - - 10,544 - 10,544
Disposals (17) (190) - - (420) (627)
Transfers between intangible assets - (112) - 112 - -
Transfer from ongoing investments 10,152 959 - (11,111) - -
As at 31 December 2024 52,928 114,525 85,266 6,446 1,552 260,717
Accumulated amortisation
As at 1 January 2024 (32,129) (67,036) - - - (99,163)
Amortisation (5,531) (4,095) - - - (9,626)
Disposals 17 183 - - - 200
As at 31 December 2024 (37,643) (70,948) - - - (108,589)
Net carrying amount
as at 1 January 2024 10,664 46,832 85,266 6,901 1,972 151,635
as at 31 December 2024 15,284 43,576 85,266 6,446 1,552 152,126

All the intangible assets presented herein are owned by the Company and are unpledged.

21.21 percent of all the intangible assets in use on 31 December 2024 were fully depreciated (compared to 16.5 percent as at 31 December 2023).

Under intangible assets, the Company recognises emission allowances for the management of plants that require a greenhouse gas emission permit. Each year the Company is required to surrender emission allowances equal to the total amount of greenhouse gas emissions released into the atmosphere by the plants during the previous year of operation. The actual amount of emissions, and therefore the number of allowances that the Company is required to surrender to the Emissions Allowance Register, is calculated using a standardised methodology, in accordance with all EU regulations and legislation, and certified by an external auditor.

The Company purchases emission allowances according to their current market value. Emission allowances obtained from the State are valued at EUR 1. As at 1 January 2024, the Company’s total balance of emission allowances amounted to 30,843 emission allowances. In 2024, 6,140 allowances were purchased for EUR 359 thousand, 12,556 emission allowances were used for EUR 822 thousand. In 2024, the Company acquired 1,332 emission allowances from the State free of charge. At the end of 2024, the Company held 25,759 emission allowances valued at EUR 1,012 thousand, of which 1,332 were acquired from the State.

Intangible fixed assets as at 31 December 2024 were tested for impairment. It was determined that there is no need for the impairment of intangible fixed assets, the same as in 2023.

Goodwill

As at 31 December 2024, the Company disclosed goodwill arising from the upstream merger of Instalacija d.o.o. in 2013 amounting to EUR 85,266 thousand.

In 2024, the Company tested the goodwill for impairment. It was determined that there is no need for the impairment of goodwill.

The assumptions used in impairment testing and the effects recognised in the Company’s financial statements have been explained as part of the goodwill disclosure relating to the Group.

5.16 Right-of-use assets

Right-of-use assets of the Petrol Group

(in EUR thousand) Right-of-use land Right-of-use buildings Right-of-use equipment Total
Cost As at 1 January 2023 79,527 60,113 25,974 165,614
New acquisitions 16,040 4,877 2,355 23,272
Cancellation (27) (2,214) (1,886) (4,127)
Foreign exchange differences 12 5 5 22
As at 31 December 2023 95,553 62,780 26,448 184,781
Accumulated amortisation As at 1 January 2023 (10,802) (16,158) (7,034) (33,994)
Depreciation (8,450) (9,153) (5,908) (23,511)
Cancellation 18 1,658 1,886 3,562
Foreign exchange differences (1) 1 - -
As at 31 December 2023 (19,235) (23,651) (11,057) (53,943)
Net carrying amount as at 1 January 2023 68,726 43,955 18,940 131,620
Net carrying amount as at 31 December 2023 76,318 39,129 15,391 130,838

Right-of-use assets of Petrol d.d., Ljubljana

(in EUR thousand) Right-of-use land Right-of-use buildings Right-of-use equipment Total
Cost As at 1 January 2023 33,478 3,117 8,405 45,000
New acquisitions 2,429 541 2,282 5,251
Cancellation (18) (965) (2,028) (3,011)
As at 31 December 2023 35,889 2,693 8,658 47,240
Accumulated amortisation As at 1 January 2023 (8,673) (1,506) (5,584) (15,762)
Depreciation (2,484) (713) (1,769) (4,966)
Cancellation 18 965 2,028 3,011
As at 31 December 2023 (11,139) (1,253) (5,324) (17,716)
Net carrying amount as at 1 January 2023 24,806 1,611 2,821 29,238
Net carrying amount as at 31 December 2023 24,750 1,440 3,334 29,524
(in EUR thousand) Right-of-use land Right-of-use buildings Right-of-use equipment Total
Cost As at 1 January 2024 35,889 2,693 8,658 47,240
New acquisitions 2,442 1,549 4,859 8,850
Cancellation - - (864) (864)
As at 31 December 2024 38,331 4,242 12,653 55,226
Accumulated amortisation As at 1 January 2024 (11,139) (1,253) (5,324) (17,716)
Depreciation (2,727) (802) (2,243) (5,772)
Cancellation - - 691 691
As at 31 December 2024 (13,866) (2,055) (6,876) (22,797)
Net carrying amount as at 1 January 2024 24,750 1,440 3,334 29,524

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

5.17 Property, plant and equipment

Net carrying amount as at 31 December 2024

Land Buildings Machinery Equipment Investments Total
Cost As at 1 January 2023 326,234 825,836 4,767 402,753 46,439 1,606,029
New acquisitions - 217 16 7,820 71,001 79,055
Disposals (126) (6,859) (7) (16,575) (1,572) (25,140)
Impairments (597) - - - - (597)
Transfers between PPE - (566) (14) 640 (60) -
Transfers between intangible assets - - - 1,806 1 1,807
Transfer from ongoing investments 13 24,700 - 19,748 (44,461) -
Transfers between investment properties 356 (1,729) - - (123) (1,496)
Foreign exchange differences 32 (1) - 43 1 76
As at 31 December 2023 325,912 841,599 4,762 416,235 71,225 1,659,733

Accumulated amortisation

As at 1 January 2023 - (507,113) (2,846) (241,517) - (751,476)
Depreciation - (28,841) (259) (30,747) - (59,847)
Disposals - 6,052 7 12,959 - 19,017
Transfers between PPE - 43 14 (57) - -
Transfers between investment properties - 147 - - - 147
Foreign exchange differences - 6 - (10) - (5)
As at 31 December 2023 - (529,707) (3,084) (259,372) - (792,163)

Net carrying amount as at 1 January 2023

Land Buildings Machinery Equipment Investments Total
326,234 318,723 1,920 161,236 46,439 854,553

Net carrying amount as at 31 December 2023

Land Buildings Machinery Equipment Investments Total
325,912 311,892 1,678 156,863 71,225 867,570

Cost

Land Buildings Machinery Equipment Investments Total
As at 1 January 2024 325,912 841,599 4,762 416,235 71,225 1,659,733
New acquisitions 2 580 9 9,468 45,085 55,144
Disposals (1) (5,668) (44) (15,078) (242) (21,033)
Transfers between PPE - - (1,484) 1,484 - -
Transfers between intangible assets - 3,461 - (7,281) 79 (3,741)
Transfer from ongoing investments 27 32,497 8 29,272 (61,804) -
Transfer to investment property - - - - (2,570) (2,570)
Transfer from investment properties - 772 - - - 772
Foreign exchange differences 50 171 - 38 15 274
As at 31 December 2024 325,990 873,412 3,251 434,138 51,788 1,688,579

Accumulated amortisation

As at 1 January 2024 - (529,707) (3,084) (259,372) - (792,164)
Depreciation - (29,100) (107) (32,468) - (61,675)
Disposals - 4,487 36 10,058 - 14,581
Transfers between PPE - - 798 (798) - -
Transfers between intangible assets - (785) - 1,105 - 320
Transfer from investment properties - (537) - - - (537)
Foreign exchange differences - (69) - (19) - (88)
As at 31 December 2024 - (555,711) (2,357) (281,494) - (839,562)

Net carrying amount as at 1 January 2024

Land Buildings Machinery Equipment Investments Total
325,912 311,892 1,678 156,863 71,225 867,570

Net carrying amount as at 31 December 2024

Land Buildings Machinery Equipment Investments Total
325,990 317,701 894 152,644 51,788 849,017

37.89 percent of all items of property, plant and equipment in use on 31 December 2024 were fully depreciated (compared to 44.26 percent as at 31 December 2023).

Pledged property, plant and equipment: All of the Group's property, plant and equipment are free of encumbrances.

In accordance with the IAS 36 and based on external and internal sources of information and factors, the Group checked whether there were any indicators that the assets may be impaired.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

5.18 Investment property

Investment property comprises buildings (storage facilities, car washes, bars) being leased out by the Group/Company.

(in EUR thousand) The Petrol Group Petrol d.d.
Cost
As at 1 January 2023 36,350 27,732
New acquisitions 1,806 174
Disposals (126) -
Transfers between property, plant and equipment 1,496 123
As at 31 December 2023 39,526 28,028

Property, plant and equipment of Petrol d.d., Ljubljana

Ongoing

(in EUR thousand) Land Buildings Equipment Investments Total
Cost
As at 1 January 2023 102,587 584,617 276,608 23,408 987,220
New acquisitions - - - 33,840 33,840
Disposals (126) (1,075) (8,851) (270) (10,322)
Impairments (597) - - - (597)
Transfer from ongoing investments - 7,383 13,469 (20,851) -
Transfers between investment property - - - (123) (123)
As at 31 December 2023 101,865 590,924 281,226 36,005 1,010,019
Accumulated amortisation
As at 1 January 2023 - (429,511) (191,399) - (620,910)
Depreciation - (15,147) (16,297) - (31,444)
Disposals - 384 7,896 - 8,280
As at 31 December 2023 - (444,274) (199,800) - (644,074)
Net carrying amount as at 1 January 2023 102,587 155,106 85,210 23,408 366,311
Net carrying amount as at 31 December 2023 101,865 146,650 81,426 36,005 365,945

Ongoing

(in EUR thousand) Land Buildings Equipment Investments Total
Cost
As at 1 January 2024 101,865 590,924 281,226 36,005 1,010,019
New acquisitions as a result of merger by absorption 37 1,668 1,480 3,185
New acquisitions - - - 31,932 31,932
Disposals (1) (3,324) (5,950) (9) (9,284)
Transfer from ongoing investments 25 23,726 20,407 (44,158) -
Transfer to investment property - - - (2,570) (2,570)
Transfer from investment properties - 772 - - 772
As at 31 December 2024 101,926 613,766 297,163 21,200 1,034,054
Accumulated amortisation
As at 1 January 2024 - (444,274) (199,800) - (644,074)
New acquisitions as a result of merger by absorption - (466) (794) - (1,260)
Depreciation - (14,975) (17,036) - (32,011)
Disposals - 3,179 5,716 - 8,895
Transfer from investment properties - (537) - - (537)
As at 31 December 2024 - (457,073) (211,914) - (668,987)
Net carrying amount as at 1 January 2024 101,865 146,650 81,426 36,005 365,945
Net carrying amount as at 31 December 2024 101,926 156,693 85,249 21,200 365,068

47.56 percent of all items of property, plant and equipment in use on 31 December 2024 were fully depreciated (compared to 46.6 percent as at 31 December 2023).

Pledged property, plant and equipment: All property, plant and equipment of the Company are unpledged.

The Company’s impairment review process has determined that no indicators of impairment exist for property, plant and equipment as at 31 December 2024. And it was determined that there is no need for the impairment of property, plant and equipment.

In 2023, the Company’s impairment indicator review process determined that carrying amounts of certain land exceeded their fair values and values in use. Therefore, the Company impaired land as at 31 December 2023 by EUR 597 thousand on the basis of valuations carried out by independent appraisers.

Accumulated amortisation

The Petrol Group Petrol d.d.
As at 1 January 2023 (21,572) (16,241)
Depreciation (1,085) (654)
Disposals 118 -
Transfers between property, plant and equipment (147) -
Foreign exchange differences (1) -
As at 31 December 2023 (22,687) (16,895)

Net carrying amount

The Petrol Group Petrol d.d.
As at 1 January 2023 14,777 11,491
As at 31 December 2023 16,839 11,133

The Petrol Group

After assessing the intended use of the property and the long-term goals pursued as at 31 December 2024, the Group determined that certain property held by the Group meets the criteria to be classified as investment property. The Group transferred property worth EUR 2,570 thousand (2023: EUR 1,349 thousand) from property, plant, and equipment to investment property.

In 2024, the revenue generated by the Group from investment property totalled EUR 5,124 thousand (2023: EUR 4,171 thousand). The Group estimates that the fair value of investment property as at 31 December 2024 amounts to EUR 44,985 thousand (31 December 2023: EUR 36,345 thousand). The Group assesses the fair value using the standardised cash flows capitalisation method, whereby cash flows mainly consist of rents received from the lease of investment property.

Fair Value Assessment

The fair value of investment property was assessed using the required rate of return from 9.31 to 15.79 percent after taxes (2023: from 9.42 to 17.18 percent).

In 2024, the Group’s impairment review process determined that no indicators of impairment exist for investment property as at 31 December 2024. It was determined that there is no need for the impairment of investment property.

Petrol d.d., Ljubljana

In 2024, the revenue generated by the Company from investment property totalled EUR 3,680 thousand (2023: EUR 3,270 thousand). The Company estimates that the fair value of investment property as at 31 December 2024 amounts to EUR 33,595 thousand (31 December 2023: EUR 29,503 thousand). The Company assesses fair value using the standardised cash flows capitalisation method, whereby cash flows consist mainly of rents received from the lease of investment property. A required rate of return of 9.31 percent (2023: 9.42 percent) is assumed.

In 2024, the Company’s impairment review process determined that no indicators of impairment exist for investment property as at 31 December 2024. It was determined that there is no need for the impairment of investment property.

5.19 Investments in subsidiaries

The Petrol Group

In the preparation of the Group’s financial statements, investments in subsidiaries are eliminated on consolidation. A more detailed overview of the Group’s structure is presented in the chapter Companies in the Petrol Group of the business report.

Petrol d.d., Ljubljana

Information about direct subsidiaries as at 31 December 2024

Name of subsidiary Address of subsidiary Ownership interest Equity as at 31 December 2024 (in EUR thousand) Net profit or loss for 2024 (in EUR)

Information about indirect subsidiaries as at 31 December 2024

Slovenia Address Ownership interest Equity as at 31 December 2024 (in EUR thousand) Net profit or loss for 2024 (in EUR thousand)
IGES d.o.o. Dunajska cesta 50, Ljubljana, Slovenia 100% 15,637 196
Petrol Skladiščenje d.o.o. Zaloška 259, Ljubljana Polje, Slovenia 100% 815 0
Petrol GEO d.o.o. Mlinska ulica 5d, Lendava, Slovenia 100% 2,440 214
Petrol Pay d.o.o. Tržaška cesta 118, Ljubljana, Slovenia 100% 2,122 (337)
Geoplin d.o.o. Ljubljana¹ Cesta Ljubljanske brigade 11, Ljubljana, Slovenia 99.35% 199,322 46,927
Atet d.o.o.² Devova ulica 6A, Ljubljana, Slovenia 96% 2,877 127
E 3, d.o.o. Prvomajska ulica 21, Nova Gorica, Slovenia 100% 23,653 6,719
Croatia Address Ownership interest Equity as at 31 December 2024 (in EUR thousand) Net profit or loss for 2024 (in EUR thousand)
Petrol d.o.o. Savska Opatovina 36, Zagreb, Croatia 100% 281,349 41,072
Vjetroelektrane Glunča d.o.o. Savska Opatovina 36, Zagreb, Croatia 100% 30,233 5,752
Zagorski metalac d.o.o.³ Ulica Josipa Broza Tita 2F, Zabok, Croatia 75% 5,280 604
Serbia Address Ownership interest Equity as at 31 December 2024 (in EUR thousand) Net profit or loss for 2024 (in EUR thousand)
Petrol d.o.o. Beograd Omladinskih brigada 88-90, New Belgrade, Serbia 100% 41,842 3,742
Beogas d.o.o. Beograd Omladinskih brigada 88-90, New Belgrade, Serbia 100% 24,247 1,608
Petrol LPG d.o.o. Omladinskih brigada 88-90, New Belgrade, Serbia 100% 11,601 123
STH Energy d.o.o. Kraljevo Karadjordjeva 241, Kraljevo, Serbia 80% 546 (47)
Montenegro Address Ownership interest Equity as at 31 December 2024 (in EUR thousand) Net profit or loss for 2024 (in EUR thousand)
Petrol Crna Gora MNE d.o.o. Ulica Slobode br. 2, Podgorica, Montenegro 100% 24,578 1,331
Bosnia and Herzegovina Address Ownership interest Equity as at 31 December 2024 (in EUR thousand) Net profit or loss for 2024 (in EUR thousand)
Petrol BH Oil Company d.o.o. Sarajevo Ulica Džemala Bijedića br. 202, Sarajevo, Bosnia and Herzegovina 100% 77,523 4,549
Petrol Hidroenergija d.o.o. Teslić Branka Radičevića 1, Teslić, Bosnia and Herzegovina 80% 6,982 600
Petrol Power d.o.o. Sarajevo Ulica Džemala Bijedića br. 202, Sarajevo, Bosnia and Herzegovina 100% (611) (33)
Other countries Address Ownership interest Equity as at 31 December 2024 (in EUR thousand) Net profit or loss for 2024 (in EUR thousand)
Petrol-Trade Handelsgesellschaft m.b.H. Elisabethstrasse 10/4, Vienna, Austria 100% 2,690 1,129
Petrol-Energetika DOOEL Skopje Ul. St. Kiril i Metodij 20, Skopje, North Macedonia 100% 121 2
Petrol Bucharest ROM S.R.L. B-dul Tudor Vladimirescu 22, Sector 5, Bucharest, Romania 100% (300) (343)
Petrol-OTI-Terminal L.L.C. Industrial zone bb, Kosovo Polje, Kosovo 100% 8,555 (15)

1 Petrol d.d., Ljubljana has 99.55 percent of the voting rights in Geoplin d.o.o. Ljubljana.

2 Petrol d.d., Ljubljana has 100 percent of the voting rights in ATET d.o.o.

3 The Geoplin d.o.o. Ljubljana subsidiary owns a 25 percent interest in Zagorski metalac d.o.o. In total, the Group has a 99.89 percent interest in Zagorski metalac d.o.o.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Balance of investments in subsidiaries

Company 31 December 2024 31 December 2023
Petrol d.o.o. 327,834 327,834
Geoplin d.o.o. Ljubljana 102,516 56,964
Petrol BH Oil Company d.o.o. Sarajevo 34,538 34,538
Petrol d.o.o. Beograd 23,603 23,603
Petrol Crna Gora MNE d.o.o. 19,396 19,396
IGES d.o.o.

Petrol Lumennis

Location Address Ownership Value Count
VS Patrijarha Dimitrija 12v, Belgrade, Serbia 100% 2 1
ZA Omladinskih brigada 88‒90, New Belgrade, Serbia 100% 7 2
ŠI Omladinskih brigada 88‒90, New Belgrade, Serbia 100% 1 0
KU 2021 Omladinskih brigada 88‒90, New Belgrade, Serbia 100% 47 17
KI Omladinskih brigada 88‒90, New Belgrade, Serbia 100% (1) 1
SU Omladinskih brigada 88‒90, New Belgrade, Serbia 100% - -
MI Omladinskih brigada 90, New Belgrade, Serbia 100% - -

The IGES Group

Company Address Ownership Value Count
Vitales d.o.o. Bihać Naselje Ripač b.b., Bihać, Bosnia and Herzegovina 100% - -

The Petrol Zagreb

Company Address Ownership Value Count
Petrol javna rasvjeta d.o.o. Savska Opatovina 36, Zagreb, Croatia 100% 160 32
Adria-Plin d.o.o. Stinice 15, Kastel Gomilica, Croatia 75% 90 17

The Geoplin Group

Company Address Ownership Value Count
Geoplin d.o.o. Radnička 177, Zagreb, Croatia 100% (34,333) (16,375)

The Atet Group

Company Address Ownership Value Count
Atet Mobility Zagreb d.o.o. Savska Opatovina 36, Zagreb, Croatia 100% 596 (7)

1 The company is in bankruptcy proceedings.

Vjetroelektrane Glunča d.o.o.

15,774
15,581
E 3, d.o.o. 14,950
14,950
Beogas d.o.o. Beograd 12,774
12,774
Zagorski metalac d.o.o. 7,600
7,600
Petrol Hidroenergija d.o.o. Teslić 5,000
5,000
Petrol LPG d.o.o. 4,771
4,771
Petrol Pay d.o.o. 4,153
5,955
Atet d.o.o. 3,467
5,303
Petrol - OTI - Terminal L.L.C. 1,805
1,805
Petrol Skladiščenje d.o.o. 795
795
Petrol GEO d.o.o. 697
697
STH Energy d.o.o. Kraljevo 468
468
Petrol Trade Handelsgesellschaft m.b.H. 148

Petrol d.d. (in EUR thousand)

Subsidiary 2024 2023
Petrol Power d.o.o. Sarajevo 50 -
Petrol-Energetika DOOEL Skopje 25 25
Petrol Bucharest ROM S.R.L. 10 10
Vjetroelektrana Ljubač d.o.o. - 9,057
Ekoen d.o.o. - 1,250
Ekoen S d.o.o. - 51

Total investments in subsidiaries

2024 2023
595,955 555,292

Changes in investments in subsidiaries

As at 1 January 555,292 554,033
New acquisitions 45,602 1,259
Merger by absorption (1,300) -
Impairments (3,639) -
As at 31 December

595,955

555,292

In 2024, Petrol d.d. acquired an additional ownership interest in Petrol Power d.o.o. Sarajevo, thus becoming a 100 percent owner of the company.

In July 2024, Ekoen d.o.o. and Ekoen S d.o.o. were merged into Petrol d.d., Ljubljana, with an effective merger date of January 1, 2024. The difference between the net asset value of the upstream merger and the investment was recognised as a reduction in profit reserves in the amount of EUR 567 thousand.

In July 2024, Vjetroelektrana Ljubač d.o.o. was merged into Vjetroelektrane Glunča d.o.o.

As of December 31, 2024, the Group was a 99.35 percent owner of Geoplin d.o.o. Ljubljana (with 99.55 percent voting rights), while the share in Plinhold d.o.o. decreased to a 12.91 percent ownership interest, and in the Company to a 12.72 percent ownership interest. The investment in the subsidiary Geoplin d.o.o. Ljubljana increased by EUR 45,551 thousand due to the exchange, representing the fair value of the acquired share in Geoplin d.o.o. Further details are provided in Note 5.1.

In 2023, the Company acquired an additional 23 percent ownership interest in Atet d.o.o., thus becoming the 100 percent owner of the company.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report 389

In 2024, the Company's expenses for investments in subsidiaries, in the amount of EUR 2,050 thousand arose from a deferred payment of EUR 2,000 thousand for Crodux derivati dva d.o.o. and EUR 50 thousand for the acquisition of a non-controlling interest in Petrol Power d.o.o., Sarajevo.

In 2023, the Company's expenses for investments in subsidiaries, in the amount of EUR 4,259 thousand arose from a deferred payment of EUR 3,000 thousand for Crodux derivati dva d.o.o. and EUR 1,259 thousand for the acquisition of a non-controlling interest in Atet d.o.o.

At the Group level, deferred payment expenses are shown in the statement of cash flows under expenses for investments in subsidiaries, while the acquisition of a non-controlling interest is shown under transactions with non-controlling interests.

In accordance with IAS 36, the Company performed a test of impairment indicators for investments and determined that the carrying amount of investments in Atet d.o.o. and Petrol Pay d.o.o. exceeds their recoverable amount. Therefore, based on the valuation of an external independent valuator, the Company recognised an impairment of this investment in the total amount of EUR 3,639 thousand in 2024. In 2023, no need for impairment of investments in subsidiaries was identified.

Impairment of an investment in a subsidiary is recognised when its carrying amount exceeds its recoverable amount. The recoverable amount of an investment in a subsidiary is the greater of its value in use and its fair value less costs to sell. The impairment test used value in use, where the estimated future cash flows are discounted to their present value using a discount rate.

To assess the value of the investment in the Atet d.o.o. subsidiary, an external independent valuator used the value in use of an asset method, as it is higher than the calculated fair value less costs to sell. The model used the five-year financial plans of Atet d.o.o., with a required after-tax rate of return of 9.0 percent and an annual growth rate of residual free cash flow of 2 percent.

To assess the value of the investment in the Petrol Pay d.o.o. subsidiary, an external independent valuator used the value-in-use of an asset method. The model used the five-year financial plans of Petrol Pay d.o.o., with a required after-tax rate of return of 13.9 percent and an annual growth rate of residual free cash flow of 2 percent.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report 390

The effect of changes in the discount rate or the non-current growth rate of the remaining free cash flows on the estimated fair value of investments is presented below:

In 2023

Change in key assumptions

Effect of change in the discount rate and the growth rate on non-current recoverable amount

Effect of change in the discount rate (WACC) Effect on non-current impairment (in EUR thousand)
Discount rate
Growth rate (g)

amount amount change
+ 0,5 - 0,5 (38,712)
(27,751) (62,647) -
Petrol d.o.o. 9.43% 2%
- 0,5 + 0,5 44,307
31,755 81,805 -
+ 0,5 - 0,5 (2,144)
(1,712) (3,670) (1,075)
Petrol d.o.o. Beograd 12.16% 3%
- 0,5 + 0,5 2,392
1,910 4,561 -
+ 1,0 - 0,5 (452)
(190) (605) -
Petrol LPG d.o.o.

12.63% 3% - 1,0 + 0,5 555 210 824
- + 1,0 - 0,5 (2,728) (1,249) (3,651) -
E 3, d.o.o. 8.35% 2% - 1,0 + 0,5 3,727 1,460 5,856
- Vjetroelektrane Ljubač + 0,5 - (2,114) - (2,114) -
d.o.o. 11.77% - - 0,5 - 2,245 - 2,245 -
Vjetroelektrana Glunča

Company Percentage Change Value 1 Value 2 Value 3
d.o.o. 11.77% - 0,5 (1,543) (1,543)
Petrol Pay d.o.o. 14.60% 2% - 0,5 + 0,5
120 128 258
Atet d.o.o. 7.50% 2% - 0,5
(870) (883) (1,617)
(1,456)

In 2024

Key assumptions

Change in key assumptions Effect of change Effect of Effect of
in the discount rate and the non-current growth rate Effect on discount rate
Non-current Discount rate Non-current Discount rate
growth rate recoverable the recoverable amount
(in EUR thousand) (WACC) (g) (WACC)
(g)

0,5

1,045

1,060

2,340

-

amount change
+ 0,5 - 0,5
(21,578) (11,609)
(31,386) -
Petrol d.o.o. 10.20%
7% - 0,5
+ 0,5 24,377
12,984 39,951
- + 0,5
- 0,5 (1,496)
214 (1,209)
(751) Petrol d.o.o. Beograd
12.16% 3%
- 0,5 + 0,5
1,700 (264)
1,541 -
+ 0,5 -
(2,437) -
(2,437) -
Vjetroelektrana Ljubač d.o.o. 9.49%

Vjetroelektrane Glunča d.o.o.

0,5 2,590 2,590 + 0,5
(1,330) (1,330)

Petrol Pay d.o.o.

13.90% 3% - 0,5 + 0,5
85 104 198 (1,604)
+ 0,5 - 0,5 (514)

Data on non-controlling interests

The financial data for each subsidiary with a non-controlling interest are summarised below. Data for Petrol Power d.o.o. (for the year 2023), Adria-Plin d.o.o., STH Energy d.o.o. Kraljevo are shown among others. Disclosures are made before the elimination of intercompany relationships.

In 2024, Petrol d.d. acquired an additional 25.01 percent ownership interest in Geoplin d.o.o., thus becoming a 99.35 percent owner of the company with 99.55 percent voting rights. In 2024, Petrol d.d. acquired an additional ownership in Petrol Power d.o.o. Sarajevo, thus becoming a 100 percent owner of the company. In 2023, Petrol d.d. acquired an additional 23 percent interest in Atet d.o.o., thus becoming a 100 percent owner of the company.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Public 2023

(in EUR thousand) The Geoplin Group Zagorski d.o.o. Petrol d.o.o. Teslić Others Total
Revenue 1,014,058 14,661 3,274 4,850 1,036,843
Net profit/(loss) for the year 2,549 (237) 2,516 1,772 6,600
Net profit/(loss) for the year attributable to: Non-controlling interest 650 (15) 503 51 1,190
Total other comprehensive income after tax 957 3 - (1) 958
Total comprehensive income for the financial year 3,506 (234) 2,516 1,771 7,558
Total comprehensive income attributable to: Non-controlling interest 894 (15) 503 51 1,434
(in EUR thousand) The Geoplin Group Zagorski d.o.o. Petrol d.o.o. Teslić Others Total
Non-current assets 42,537 7,385 5,427 4,956 60,306
Current assets 204,894 8,670 3,757 3,966 221,287
Non-current liabilities (203) (3,407) - (1,750) (5,359)
Current liabilities (130,035) (2,714) (418) (9,188) (142,355)
Net assets 117,194 9,935 8,766 (2,016) 133,879
Net assets attributable to: Non-controlling interest 29,899 634 1,753 165 32,451
(in EUR thousand) The Geoplin Group Zagorski d.o.o. Petrol d.o.o. Teslić Others Total
Net cash from (used in) operating activities (1,436) 2,592 2,521 2,051 5,728
Net cash from (used in) investing activities 2,686 (11,548) 937 (144) (8,069)
Net cash from (used in) financing activities (174) 10,172 (738) 598 9,857
Increase/(decrease) in cash and cash

2024

The Geoplin Zagorski metalac Petrol Hidroenergija (in EUR thousand)

Group d.o.o. d.o.o. Teslić Others Total
Revenue 932,071 14,427 1,067 1,789 949,354
Net profit/(loss) for the year 35,830 479 606 (30) 36,885
Net profit/(loss) for the year attributable to: Non-controlling interest 7,332 47 121 (5) 7,495
Total other comprehensive income after tax 15,229 - - - 15,229
Total comprehensive income for the financial year 51,059 479 606 (30) 52,114
Total comprehensive income attributable to: Non-controlling interest 9,985 47 121 (5) 10,148

The Geoplin Zagorski metalac Petrol Hidroenergija (in EUR thousand)

Group d.o.o. d.o.o. Teslić Others Total
Non-current assets 40,515 7,028 5,243 2,158 54,944
Current assets 232,481 5,467 1,838 439 240,225
Non-current liabilities (1,956) (3,249) - (1,754) (6,959)
Current liabilities (101,074) (2,932) (99) (207) (104,312)
Net assets 169,966 6,314 6,982 636 183,898
Net assets attributable to: Non-controlling interest 771 7 1,396 132 2,306

The Geoplin Zagorski metalac Petrol Hidroenergija (in EUR thousand)

Group d.o.o. d.o.o. Teslić Others Total
Net cash from (used in) operating activities 23,959 (118) 107 277 24,225
Net cash from (used in) investing activities (27,618) 3,993 - (476) (24,101)
Net cash from (used in) financing activities (1,506) (3,075) (1,912) (2,864) (9,357)
Increase/(decrease) in cash and cash equivalents (5,165) 800 (1,805) (3,063) (9,233)
Dividend payments to non-controlling interest 502 261 478 36 1,277

5.20 Investments in jointly controlled entities

A more detailed overview of the Group’s structure is presented in the chapter Companies in the Petrol Group of the business report.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report 392

Public Information about jointly controlled entities as at 31 December 2024

Name of jointly controlled entity Address of jointly controlled entity Business activities Ownership and voting rights 31 December 2024 Ownership and voting rights 31 December 2023
GEOENERGO d.o.o. - in bankruptcy¹ Slovenia Extraction of natural gas, oil

Mlinska ulica 5, Lendava, Slovenia

and gas condensate

Electricity, gas and steam Soenergetika d.o.o. Stara cesta 3, Kranj, Slovenia supply
25% 25% Croatia Krapanjska cesta 8, Šibenik,
Vjetroelektrana Dazlina d.o.o. Croatia Electricity production 50%
50%

1

The company is in bankruptcy proceedings.

After analysing the contracts of members of jointly controlled entities, the Group/Company established that it does not control those entities, disclosing them as investments in jointly controlled entities as a result.

Balance of investments in jointly controlled entities

The Petrol Group Petrol d.d. 31 December 2024 31 December 2023 31 December 2024 31 December 2023
Soenergetika d.o.o. 320 327 210 210
Vjetroelektrarna Dazlina d.o.o. 22 23 23

23 Total investments in jointly controlled entities

The Petrol Group 2024 2023
As at 1 January 350 1,278
Attributed profit/loss 36 44
Dividends received (44) (931)
Impairment - (41)
As at 31 December 342 350

In 2024, in conformity with the equity method, the Group attributed the corresponding share of profits, in total EUR 36 thousand (2023: EUR 44 thousand), deducting from the investments the dividends received of EUR 44 thousand (2023: EUR 931 thousand). No impairment needs were identified in 2024. In 2023, based on the impairment review of investments in jointly controlled entities, the Group impaired the investment in Geoenergo by EUR 41 thousand as the company has been undergoing bankruptcy proceedings as of 19 January 2024.

Public

Significant amounts from the financial statements of jointly controlled entities

(in EUR thousand) Net assets of jointly controlled entities Liabilities Ownership interest Carrying amount of the Petrol Group investment Net profit or loss attributable to the Petrol Group Revenue
Soenergetika d.o.o. 1,595 286 1,309 25% 327 2,310 178 44
Vjetroelektrana Dazlina d.o.o. 530 532 (2) 50% (1) 23 - -
Geoenergo d.o.o. 1,371 3,811 (2,440) 50% (1,220) - 2,260 (2,315) (1,157)

2024

Net assets Liabilities Net profit or loss Net assets of jointly controlled entities Ownership interest Carrying amount of the Petrol Group investment Revenue Net profit or loss attributable to the Petrol Group
Soenergetika d.o.o. 2,031 753 1,278 25% 320 320 2,948 146 36
Vjetroelektrana Dazlina d.o.o. 1,006 1,009 (3) 50% (2) 22 6 - -
Geoenergo d.o.o. 1,452 3,881 (2,429) 50% (1,215) - 62 11 -

Changes in investments in jointly controlled entities

Petrol d.d.

(in EUR thousand) 2024 2023
As at 1 January 233 233
As at 31 December 233 233

Options contracts

The original contract for the acquisition of a 50 percent interest in Vjetroelektrarna Dazlina d.o.o. from 2017 contains a call option under which Petrol d.d., Ljubljana has an option to acquire the remaining 50 percent interest in Vjetroelektrarna Dazlina d.o.o. at fair value. The option is enforceable subject to suspensive conditions.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

5.21 Investments in associates

A more detailed overview of the Group’s structure is presented in the chapter Companies in the Petrol Group of the business report.

Information about associates as at 31 December 2024

Name of associate Address of associate Business activities Ownership and voting rights 31 December 2024 31 December 2023
Knešca d.o.o. Kneža 78, Most na Soči, Slovenia Electricity production 47.27%

Balance of investments in associates

The Petrol Group

Company 2024 (in EUR thousand) 2023 (in EUR thousand) 2024 (in EUR thousand) 2023 (in EUR thousand)
Knešca d.o.o. 1,067 1,072 - -
Aquasystems d.o.o. 797 1,314 337 337
Plinhold d.o.o. - - - -

1 The company is in liquidation.

Construction and operation of

Aquasystems d.o.o. - in Dupleška cesta 330, Maribor, Slovenia

Management of gas infrastructure

Plinhold d.o.o. Mala ulica 5, Ljubljana, Slovenia

47.27%

26%

26%

30%

The Petrol Group

Changes in investments in associates

The Petrol Group (in EUR thousand)

2024 2023
As at 1 January 59,317 56,968
Attributed profit/loss 1,543 3,680
Dividends received (2,040) (1,350)
Disposals (32,397) -
Transfer between financial assets at fair value through OCI (24,541) -
Attribution of changes in the equity of associates (18) 18
As at 31 December 1,864 59,317

In 2024, in conformity with the equity method, the Group attributed the corresponding share of 2024 profits or losses to its investments, in total EUR 1,543 thousand (2023: EUR 3,680 thousand), deducting from the investments the dividends received of EUR 2,040 thousand (2023: EUR 1,350 thousand).

Significant amounts from the financial statements of associates

Liabilities Net assets Ownership of the Petrol Carrying amount of the Net profit or loss attributable to the Petrol

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Assets and Liabilities

(in EUR thousand) Assets (debt) associates interest Group investment Revenue loss Group
Knešca d.o.o. 1,987 223 1,764 47.27% 834 1,072 871 542
Aquasystems d.o.o. 6,204 1,152 5,052 26% 1,314 1,314 8,771 3,500
Plinhold d.o.o. * 327,600 98,654 228,946 30% 68,325 56,931 67,800 8,300
  • Figures are based on the estimated financial statements obtained from the associate.

Net profit or loss

(in EUR thousand) Liabilities Net assets of associates Ownership of the Petrol Group Net profit or loss attributable to the Petrol Group
Knešca d.o.o. 1,992 91 1,901 47.27% 899 1,067 888 530 250
Aquasystems d.o.o. 3,812 751 3,061 26% 797 797 4,050 1,511 393
Plinhold d.o.o. * - - - - - - 39,895 2,382 711
  • Figures are based on the estimated financial statements obtained from the associate.

Changes in investments in associates

Petrol d.d.

(in EUR thousand) 2024 2023
As at 1 January 26,610 26,610
Transfer between financial assets at fair value through OCI (11,252) -
Disposals (15,022) -
As at 31 December 337 26,610

On November 7, 2024, Petrol d.d., Ljubljana and the Republic of Slovenia, represented by the Slovenian Sovereign Holding in accordance with the Slovenian Sovereign Holding Act (ZSDH-1), completed the second step of the interest exchange agreement in Geoplin d.o.o. Ljubljana and Plinhold d.o.o., in accordance with the exchange agreement signed on July 14, 2016. The interest exchange was carried out in accordance with the exchange ratio calculated based on the valuations of both companies, prepared by an authorized appraiser.

As of December 31, 2024, the Group has been a 99.35 percent owner of Geoplin d.o.o. Ljubljana (with 99.55 percent voting rights), while the interest in Plinhold d.o.o. decreased to a 12.91 percent ownership interest, and in the Company to a 12.72 percent ownership interest. The Group/Company reclassified the investment in Plinhold d.o.o. from investments in associates to financial assets at fair value through other comprehensive income.

Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income are investments in the shares and interests of companies.

Balance of financial assets at fair value through other comprehensive income

The Petrol Group

Petrol d.d.

31 December

(in EUR thousand) 2024 2023 2024 2023
Non-current financial assets at fair value through other comprehensive income Shares of companies 2,859 1,930 2,801 1,871
Interests in companies 24,991 2,064 22,827 247
Total financial assets at fair value through other comprehensive income 27,850 3,994 25,628 2,118

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

396

Public

Changes in non-current financial assets at fair value through other comprehensive income

The Petrol Group

Petrol d.d.

(in EUR thousand) 2024 2023

2024

2023

As at 1 January 3,994 4,112
2,118 2,118
Transfer from investments in associates 24,541 -
Valuation of the remaining interest at fair value (1,399) -
Disposals - (118)
Decrease (24) -
Revaluation 846 -
Elimination of impairment 83 -
Impairment (191) -

As at 31 December

27,850 3,994 25,628 2,118

The Group’s/Company’s financial assets at fair value through other comprehensive income are carried at fair value.

5.23 Non-current loans

Balance of non-current loans

The Petrol Group Petrol d.d.
31 December 2024 2023
Loans and other financial receivables 1,154 2,362
Total non-current loans 1,154 2,362
22,334 29,072

Changes in non-current loans

The Petrol Group (in EUR thousand)
2024 2023
As at 1 January 2,362 949
New loans

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Loans Repaid

485 194
Loans repaid (1,216)
Increase in financial leases -
Decrease in financial leases (58)
Transfer from current loans -
Transfer to current loans (421)
Foreign exchange differences 2
As at 31 December 1,154 2,362

Petrol d.d., Ljubljana

Non-current loans of EUR 22,334 thousand (EUR 29,072 thousand as at 31 December 2023) include non-current loans granted to Group companies totalling EUR 22,306 thousand (EUR 28,108 thousand as at 31 December 2023) and non-current loans granted to others of EUR 28 thousand (EUR 964 thousand as at 31 December 2023).

Non-current Loans to Subsidiaries

Company 2024 2023
Vjetroelektrarne Glunča d.o.o. 20,504 -
STH Energy d.o.o. Kraljevo 1,402 1,402
Atet d.o.o.

Changes in non-current loans

Vjetroelektrana Ljubač d.o.o. 400
Petrol d.o.o. Beograd 21,566
Ekoen d.o.o. 5,000
Ekoen S d.o.o. 80
Total 22,306

(in EUR thousand)

Year 2024 2023
As at 1 January 29,072 59,135
Decrease due to merger by absorption (80) -
New loans 400 20,821
Loans repaid (1,080) -
Transfer to current loans (5,978) (50,882)
Foreign exchange differences - (2)

As at 31 December

2024 2023 2024 2023
Receivables arising from the sales of solar power plants and heat pumps 7,624 8,466 7,621 8,452
Other receivables 2 2 - -
Total non-current operating receivables 7,626 8,468 7,621 8,452

Receivables from the sales of solar power plants and heat pumps relate to the non-current instalment part of the sales.

5.25 Inventories

The Petrol Group

Petrol d.d.

31 December

31 December

31 December

31 December


Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

(in EUR thousand) 2024 2023 2024 2023
Spare parts and material 10,290 6,181 9,978 5,796
Merchandise: 211,204 199,583 138,144 110,159
‒ fuel 155,834 137,192 99,218 65,828
‒ other petroleum products 188 226 151 178
‒ other merchandise 55,182 62,164 38,775 44,153
Total inventories 221,494 205,764 148,122 115,955

The Petrol Group

The Group has no inventories that are pledged as security for liabilities.

As of December 31, 2024, the Group examined the value of inventories of goods and materials and determined that the carrying amounts of certain products exceeded their net realizable values. Consequently, for inventories where the net realizable value, i.e., the estimated selling price in the ordinary course of business less the estimated costs to sell, was lower than the carrying amount, the Group recognised an inventory write-down of EUR 1,784 thousand (2023:

EUR 2,001 thousand). Market prices as at the date of the financial statements were taken into account.

Petrol d.d., Ljubljana

The Company has no inventories that are pledged as security for liabilities.

As of December 31, 2024, the Company examined the value of inventories of goods and determined that the carrying amounts of certain products exceeded their net realizable values. Consequently, for inventories where the net realizable value, i.e., the estimated selling price in the ordinary course of business less the estimated costs to sell, was lower than the carrying amount, the Company recognised an inventory write-down of EUR 1,341 thousand (2023: EUR 1,987 thousand). Market prices as at the date of the financial statements were taken into account.

5.26 Current loans

The Petrol Group Petrol d.d.
31 December 31 December 31 December 31 December
(in EUR thousand) 2024 2023 2024 2023
Loans 2,703 1,314 44,916 36,359
Allowance to the value of loans granted (1,681) (780) (979) (718)
Time deposits with banks (3 months to 1 year) 16 159 - 142
Interest receivables 269 261 8,232 7,846
Allowance for interest receivables (226)

The Petrol Group

In addition to loans of EUR 1,863 thousand granted by Petrol d.d., Ljubljana to others (EUR 533 thousand as at 31 December 2023) (explained in the disclosure relating to the Company), the loans granted include current loans of EUR 840 thousand (EUR 780 thousand as at 31 December 2023) granted to other companies, mainly in connection with the payment of goods delivered.

Petrol d.d., Ljubljana

Current loans to companies of EUR 44,916 thousand (EUR 36,359 thousand as at 31 December 2023) include the current portion of loans to Group companies totalling EUR 43,053 thousand (EUR 35,826 thousand as at 31 December 2023) and current loans to others equalling EUR 1,863 thousand (EUR 533 thousand as at 31 December 2023).

Current loans to subsidiaries

Company 31 December 2024 31 December 2023
Petrol d.o.o., Beograd 20,000 15,000
Atet d.o.o. 8,164 6,775
Petrol LPG d.o.o. 6,000 6,000
Petrol Crna Gora MNE 4,700 -
Petrol-Energetika DOOEL Skopje 1,980 -
Atet Mobility Zagreb d.o.o. 1,077 4
Petrol Pay d.o.o.

5.27 Current operating receivables

Petrol Bucharest ROM S.R.L. 700
Petrol Oti Terminali d.o.o. 332
E 3, d.o.o. 100
Petrol Power d.o.o. Sarajevo 3,759
Ekoen d.o.o. 3,562
Ekoen S d.o.o. 33
Total 43,053
35,826

Current loans to others of EUR 1,863 thousand (EUR 533 thousand as at 31 December 2023) refer to loans to companies for the payment of goods delivered of EUR 979 thousand (EUR 454 thousand as at 31 December 2023) and other loans of EUR 884 thousand (EUR 79 thousand as at 31 December 2023). The Company did not have any loans arising from the sale of financial instruments as at 31 December 2024, the same as at 31 December 2023.

Current Non-Financial Assets

Allowance for trade receivables (60,022) (56,144) (27,219) (30,014)
Operating interest receivables 1,608 1,871 1,201 2,764
Allowance for interest receivables (1,559) (1,798) (1,201) (1,368)
Receivables from insurance companies (loss events) 74 131 34 65
Other operating receivables 20,319 27,303 8,643 12,548
Allowance for other receivables (1,528) (2,016) (280) (761)
Total 673,684 794,205 417,550 539,650

Operating receivables from the state and other institutions


5.28 Contract assets

The Petrol Group

Contract assets represent a transfer of goods or services to a customer before the consideration is paid. Contract assets relate to public lighting projects. As at 31 December 2024, contract assets amounted to EUR 5,281 thousand (2023: EUR 6,053 thousand).

5.29 Derivative financial instruments

The Petrol Group

Petrol d.d.

31 December 31 December 31 December 31 December
(in EUR thousand) 2024 2023 2024 2023
Assets from derivative financial instruments 15,618 20,606 14,906
Assets arising from interest rate swaps
Fair value of derivatives used for hedging

Assets arising from currency forward contracts

Fair value of derivatives through profit or loss 1,590 - 1,590 -
- petroleum products 1,590 - 1,590 -

Fair value of derivatives used for hedging

7,620 - - -
- natural gas 7,620 - -

Assets arising from commodity derivatives

Fair value of derivatives through profit or loss 810 3,960 962 3,883
- petroleum products 810 121 962

Electricity

Fair value of derivatives used for hedging 324 1,981 324 1,981
Petroleum products 324 324
Electricity 1,981 1,981
Total assets arising from derivative financial instruments 25,962 26,547 17,782 24,022
Fair value of derivatives through profit or loss 2,400 3,960 2,552 3,883
Fair value of derivatives used for hedging 23,562 22,587 15,230 20,139

Liabilities from derivative financial instruments

Liabilities arising from interest rate swaps

Fair value of derivatives used for hedging 767
489
767
489
767
489
767
489

Liabilities arising from currency forward contracts

Fair value of derivatives through profit or loss - 1,348
- petroleum products - 1,348
Fair value of derivatives used for hedging - 9,075
- natural gas - 9,075
10,423
1,348

Liabilities arising from commodity derivatives

Fair value of derivatives through profit or loss 15,832 786

Financial Instruments

15,364 234
- petroleum products 1,154 -
1,154 -
- electricity 14,210 173
14,210 234
- natural gas 468 613
- -
Fair value of derivatives used for hedging 4,917 11,036 109 -
- petroleum products 109 - 109 -
- natural gas 4,808 11,036 - -
20,749 11,822 15,473 234
Total liab. arising from derivative fin. instruments 21,516 22,734 16,240

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Fair value of derivatives through profit or loss

2,071 15,832 2,134 15,364 1,582

Fair value of derivatives used for hedging

5,684 20,600 876 489

Liabilities arising from interest rate swaps and forward contracts were in previous years shown under the item 'borrowings and other financial liabilities' in the statement of financial position. With the introduction of a change to the presentation of all derivative financial instruments in a single line item in the statement of financial position, these liabilities were reallocated.

The Petrol Group and Petrol d.d., Ljubljana Assets and liabilities arising from interest rate swaps are fully designated for hedging purposes, and their effects are recognised in other comprehensive income and shown in hedging reserves within equity.

Assets and liabilities arising from forward contracts for the purchase of US dollars represent the fair values of open forward contracts at the statement of financial position date. Among the assets and liabilities arising from forward contracts, a portion of the assets or liabilities is intended for hedging, with the effect of these forward contracts being recognized in other comprehensive income and shown among hedging reserves within equity.

Assets and liabilities from commodity swaps represent the fair values of open commodity swap contracts for the purchase of petroleum products and electricity at the statement of financial position date. Among commodity derivatives, a portion is intended for hedging, with the effect of these commodity derivatives being recognized in other comprehensive income and shown in hedging reserves within equity.

5.30 Prepayments and other assets

The Petrol Group Petrol d.d.
31 December 31 December
31 December 31 December
(in EUR thousand)
2024
2023
Prepayments and collaterals

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Accrued claims against Borzen 51,960 70,919 18,781 29,423
Excise duties receivables 23,925 30,552 9,636 21,990
Prepaid licenses, subscriptions, specialised literature, etc. 20,794 17,850 9,758 9,283
Prepaid insurance premiums 3,135 2,558 2,548 2,168
Other deferred expenses 585 1,647 239 1,222
Total prepayments and other assets 109,220 130,114 47,765 68,415

The main part of prepayments and securities receivable are securities given to suppliers for the leasing of cross-border transport capacity abroad and for the purpose of trading (buying and selling) electricity or natural gas in certain markets.

Among other assets, the Group/Company also discloses claims to Borzen for the compensation of the difference between the average monthly purchase cost and the regulated retail price for the supply of electricity and natural gas. As a result, the Group recorded a reduction in purchase value of EUR 41,978 thousand in 2024 (2023: EUR 83,277 thousand). The Company recorded a reduction in purchase value of EUR 16,435 thousand in 2024 (2023: EUR 52,323 thousand).

5.31 Cash and cash equivalents

The Petrol Group

Petrol d.d.

31 December

(in EUR thousand) 2024 2023 2024 2023
Cash in banks 42,071 60,958 13,214 22,829
Current deposits (up to 3 months) 22,742 28,003 9,564 -
Cash on the way 12,048 16,976 7,777 10,191
Total cash and cash equivalents 76,861 105,937 30,555 33,020

5.32 Equity

Called-up capital

The Company's share capital of EUR 52,241 thousand is divided into 41,726,020 ordinary shares with a nominal value of EUR 1.25. All shares have been fully paid up. 41,726,020 ordinary shares (designated PETG) are listed on the Ljubljana Stock Exchange. The quoted share price as at 31 December 2024 was EUR 31.50 per share (31 December 2023: EUR 23.30). The book value per share of the Group as at 31 December 2024 was EUR 23.40 (31 December 2023: EUR 22.12).

Capital surplus

Capital surplus may be used under the conditions and for the purposes stipulated by law. As at 31 December 2024, the Group's capital surplus amounted to EUR 80,991 thousand and includes the general equity revaluation adjustment of EUR 80,080 thousand, which was included in the capital surplus upon the transition to IFRS, and EUR 911 thousand of capital surplus arising from the excess of the disposal value over the carrying amount of own shares paid as a bonus to the Company's Supervisory Board members. The Company's capital surplus as at 31 December 2024 did not differ from the Group's capital surplus. There were no changes in the capital surplus in 2024.

Profit reserves

− Legal reserves and other profit reserves

Legal and other profit reserves are amounts retained from profits of previous years for a specific purpose, mainly to cover potential future losses. The Company's Supervisory Board, on the proposal of the Company's Management Board, approved the set-up of other profit reserves from the net profit in accordance with Article 230 of the Companies Act in the amount of EUR 65,256 thousand when adopting the annual report for 2024.

− Own shares and reserves for own shares

If the parent company or its subsidiaries acquire an ownership interest in the parent company, the amount paid, including transaction costs, less tax, is deducted from total equity as own shares until such shares are cancelled, reissued, or sold. If own shares are later sold or reissued, any consideration received is included in equity net of transaction costs and related tax effects.

Petrol d.d., Ljubljana

In 2024, there were no changes in the number of own shares. As at 31 December 2024, the Company held 494,060 own shares (31 December 2023: 494,060). The market value of the repurchased own shares as at the same date was EUR 15,563 thousand (31 December 2023: EUR 11,512 thousand). The Company did not change its reserves for own shares in 2024.

The Petrol Group

As at 31 December 2024, Geoplin d.o.o. Ljubljana held 120,400 shares of Petrol d.d., Ljubljana (31 December 2023: 120,400), with a market value of EUR 3,793 thousand as at the same date (31 December 2023: EUR 2,805 thousand). The Group held 614,460 own shares as at 31 December 2024. The market value of own shares as at the same date was EUR 19,355 thousand (31 December 2023: EUR 14,317 thousand).

Other reserves

Other reserves of the Group/Company consist of the fair value reserve and the hedging reserve. Changes in these reserves in 2024 are detailed in disclosure 5.14. The nature of other reserves (especially drawing) must also consider local legislation, which may require a professional legal assessment.

The Company's fair value reserve as at 31 December 2024 amounted to EUR 43,424 thousand. The fair value reserve consists of reserves arising from the merger of Instalacija d.o.o. amounting to EUR 40,514 thousand and reserves from the valuation of financial assets at fair value through other comprehensive income amounting to EUR 1,589 thousand, increased by actuarial gains from the actuarial calculation of post-employment benefits on retirement amounting to EUR 1,670 thousand and decreased by deferred taxes of EUR 350 thousand.

The Group's hedging reserves as at 31 December 2024 amounted to EUR 14,218 thousand and relate to the positive valuation of interest rate swaps of EUR 11,674 thousand, the positive valuation of forward contracts of EUR 5,916 thousand, and the negative valuation of commodity derivative financial instruments of EUR 3,372 thousand.

The Company's hedging reserves as at 31 December 2024 amounted to EUR 11,391 thousand and relate to the positive valuation of interest rate swaps of EUR 11,029 thousand and the positive valuation of commodity derivative financial instruments of EUR 362 thousand.

Movements on the hedge reserves

The Petrol Group

Petrol d.d.

Commodity

Currency

Commodity


Interest rate derivative

forward Interest rate derivative (in EUR thousand)

swaps instruments contracts swaps instruments
As at 1 January 2023 28,082 (5,382) (4,873) 24,538 2,102
Changes in fair value - gross (14,501) 1,299 (983) (12,625) (94)
Deferred taxes 2,206 9 459 1,869 (57)
Non-controlling interests share in changes in fair value - gross - (355) 251 - -
Deferred taxes - (17) (117)

As at 31 December 2023

15,787 (4,446) (5,263) 13,782 1,951
Changes in fair value - gross (5,263) 4,188 16,695 (3,530) (2,037)
Deferred taxes 1,150 (921) (3,673) 777 448
Increase/(decrease) in non-controlling interest - gross - (1,755) (18) - -
Deferred taxes - 385 4 - -
Non-controlling interests share in changes in fair value - gross - (1,054) (2,345) - -

Deferred taxes

As at 31 December 2024 11,674 (3,372) 5,916 11,029 362

Interest rate swaps are designated as a hedging instrument against the variability of cash flows from bank borrowings.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report 404

Currency forward contracts and commodity derivative financial instruments are designated as hedging instruments against the variability of cash flows under a gas purchase agreement with a subsidiary, Geoplin d.o.o.

Because all the material characteristics of the hedged item and the hedging instrument are consistent (price, period, amount and quantity), we assess that the hedges are effective and that it is appropriate to record the effects of the hedges in other comprehensive income.

Accumulated profit

Allocation of accumulated profit for 2023

At the 38th General Meeting of the joint-stock company Petrol d.d., Ljubljana, held on 23 May 2024, the shareholders adopted the following decision on the allocation of accumulated profit:

As proposed by the Management Board and the Supervisory Board, the accumulated profit for the 2023 financial year of EUR 74,218 thousand was to be allocated in accordance with the provisions of Articles 230, 282, and 293 of the Companies Act (ZGD-1) as the disbursement of gross dividends of EUR 1.8 per share or the total amount of EUR 74,001 thousand (own shares excluded). The remaining accumulated profit of EUR 217 thousand and any amounts linked to own shares arising on the date the dividends are disbursed, as well as amounts resulting from rounding off dividend payments, were to be transferred to other profit reserves. The dividends were disbursed out of the net profit for 2023. In 2024, the Company paid out dividends for the year 2023 amounting to EUR 74,001 thousand.

Accumulated profit for 2024

Petrol d.d. (in EUR thousand) 31 December 2024 31 December 2023
Compulsory allocation of net profit 130,512 92,806
Net profit or loss 130,512 92,806
Net profit after compulsory allocation 130,512 92,806
Creation of other profit reserves 65,256

Determination of accumulated profit

Net profit 65,256
Retained earnings 46,403
Other profit reserves 21,271
Accumulated profit 86,587

Based on the proposal of the Company’s Management Board for the approval of the annual report, the Company’s Supervisory Board in accordance with Article 230 of the Companies Act approved the use of the net profit to create other profit reserves of EUR 65,256 thousand, and a transfer of other profit reserves to accumulated profit in the amount of EUR 21,271 thousand. The accumulated profit amounts to EUR 86,587 thousand.

The final dividends for the year ended 31 December 2024 have not yet been proposed and confirmed by the owners at a General Meeting of Shareholders, which is why they have not been recorded as liabilities in these financial statements.

5.33 Provisions for employee post-employment and other non-current benefits

Provisions for employee post-employment and other non-current benefits comprise provisions for post-employment benefits on retirement and jubilee benefits. The provisions amount to the estimated future payments for post-employment benefits on retirement and jubilee benefits discounted to the end of the reporting period. The calculation is made separately for each employee by taking into account the costs of the post-employment benefits on retirement and the costs of all the expected jubilee benefits until retirement.

Management believes that the factors for assessing provisions for jubilee awards and severance payments have not significantly changed compared to the previous year. Therefore, it estimates that the value of provisions for jubilee awards and severance payments, calculated based on the actuarial model as of 31 December 2023, is an appropriate basis for recognizing provisions as of 31 December 2024. The calculation as of 31 December 2023 was adjusted only for the number of employees as of 31 December 2024.

The Petrol Group

Petrol d.d.

31 December 31 December 31 December 31 December
(in EUR thousand) 2024 2023 Post-employment benefits on retirement
5,310

The Petrol Group

Changes in the provisions for employee post-employment and other non-current benefits

Post-employment benefits Jubilee benefits Total
in EUR thousand
As at 1 January 2023 5,004 2,833 7,837
Current service cost 522 351 873
Costs of interest 154 89 243
Post-employment benefits paid (176) (241) (417)
Actuarial surplus/deficit (466)

Reversal

As at 31 December 2023

5,038 2,523 7,561
Current service cost 693 469 1,162
Post-employment benefits paid (438) (319) (757)
Actuarial surplus/deficit 17 - 17

As at 31 December 2024

5,310 2,673 7,983

The calculation of the provisions for employee post-employment and other non-current benefits is based on the actuarial calculation, which relied on the following assumptions:

  • a 3.14 percent annual discount rate for companies in Slovenia (2023: 3.48 percent), which is based on the yield of a 10-year AA-rated euro corporate bond, a 3.48 percent discount rate for companies in Croatia (2023: 3.48 percent), a 4.01 percent discount rate for companies in the Federation of Bosnia and Herzegovina (2023: 4.01 percent), and a 6.52 percent discount rate for companies in Serbia (2023:6.52 percent);
  • the currently applicable amount of post-employment and jubilee benefits specified in the internal acts;
  • staff turnover, primarily depending on their age;
  • mortality based on the most recent mortality tables for the local population.

For Group companies, it is assumed that the average salaries will increase by 2 percentage points and, in addition, that individual salaries will increase by 0.5 percentage points.

Sensitivity analysis

Discount rate Salary increase Staff turnover Change in Percentage points

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report 406

Petrol d.d., Ljubljana

Changes in the provisions for employee post-employment and other non-current benefits

Petrol d.d. Post-employment Total
benefits Jubilee benefits
As at 1 January 2023 3,790 2,109 5,899
Current service cost 390 284 674
Costs of interest 115 64 179
Post-employment benefits paid (140) (212) (352)
Actuarial surplus/deficit (208) (257) (465)
As at 31 December 2023 3,947 1,988 5,935
Current service cost 648 461 1,109
Post-employment benefits paid (356) (306) (662)
Actuarial surplus/deficit 14 - 14
As at 31 December 2024 4,253 2,143 6,396

The calculation of the provisions for employee post-employment and other non-current benefits is based on the actuarial calculation, which relied on the following assumptions:

  • a 3.14 -percent annual discount rate (2023: 3.48-percent), which is based on the yield of a 10-year AA-rated euro corporate bond,
  • the currently applicable amount of post-employment and jubilee benefits specified in the internal acts;
  • staff turnover, primarily depending on their age;
  • mortality is based on the most recent mortality tables for the local population.

It is assumed that the average salaries will increase by 2 percentage points and, in addition, that individual salaries will increase by 0.5 percentage point.

Sensitivity analysis

Discount rate Salary increase Staff turnover Change in
Percentage points Percentage points

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

5.34 Other provisions

Effect on the balance of provisions for employee post-employment and other non-current benefits (in EUR thousand) 2024 2023 2024 2023
Non-current other provisions 39,669 30,037 35,922 26,724
Provisions for partial non-compliance pertaining to renewables in transport (482) 568 570 (493)
(514) 599

Provisions for lawsuits

1,984 2,436
1,984 2,436

Other provisions

2,795 2,254 2,083 1,523
170 153 170 153

Current other provisions

44,618 34,880 40,159 30,836

Provisions for onerous contracts

4,543 12,111 3,742 3,397
Other provisions 690 690 -
5,233 12,801 3,742 3,397

Total other provisions

49,851 47,681 43,901 34,233

Changes in the provisions for lawsuits and changes in other provisions

The Petrol Group

Petrol d.d.

Provisions for partial non-compliance pertaining to renewables

Transport Other
As at 1 January 2023 12,987 8,870
Creation of provisions 20,199 17,854
Reversal - -

Provisions for lawsuits

Transport Other
As at 1 January 2023 2,512 1,800
Creation of provisions 382 243
Reversal (56) -

Utilisation

(3,150) (584) - - (520) -
Foreign exchange differences 1 - - - -
As at 31 December 2023 30,037 2,254 153 26,724 1,523 153
Creation of provisions 12,658 1,237 17 9,198 843 17
Reversal - (269) - - - -
Utilisation (3,026)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Provisions

Provisions for partial non-compliance pertaining to renewables in transport

As at 31 December 2024

39,669 2,795 170 35,922 2,083 170

Considering its position, technical limitations and the legislative framework, the Group took a number of measures to ensure compliance and will continue to strive for the best possible solutions for the environment, customers and its owners. The provisions were estimated considering all the relevant circumstances regarding conformity with the required standards and legal aspects, and represent the management’s best estimate of how likely the outflow of funds from the Group/Company is. Because the legislation is recent, it is not possible to foresee the timeframe for the settlement of liabilities, which is why the provisions have not been discounted.

Provisions for lawsuits

In 2024, the Company and its subsidiaries were involved in civil, commercial, labour and administrative litigation. In order to protect the legal and financial position of the Group/Company, the Group/Company is not in a position to disclose the details of individual matters and their status. The amount of the provisions for lawsuits is determined based on the amount of a claim or estimated based on the expected possible amount if the actual amount is not yet known. Provisions are made in cooperation with law firms acting as our proxies, in accordance with applicable accounting standards, and reflect the disputed amount and the estimated success of pending litigation.

The Group’s management estimates that there is a possibility that some of these lawsuits will be lost. That is why the Group set aside non-current provisions for lawsuits and interest on overdue amounts arising from the claims. The provisions for lawsuits totalled EUR 2,307 thousand as at 31 December 2024 (EUR 1,990 thousand as at 31 December 2023) while the provisions for interest on overdue amounts arising from the claims stood at EUR 488 thousand (EUR 264 thousand as at 31 December 2023).

The Company’s non-current provisions for lawsuits totalled EUR 1,648 thousand as at 31 December 2024 (EUR 1,306 thousand as at 31 December 2023), with the provisions for interest on overdue amounts arising from the claims amounting to EUR 435 thousand (EUR 217 thousand as at 31 December 2023). The provisions were created based on the lawyers' assessment of the cases.

Provisions for onerous contracts

As at 31 December 2024, the Group/Company has concluded contracts with customers for the supply of electricity for 2025 and beyond. As part of the sold quantities of the Group/Company for 2025 are purchased at prices higher than the current market purchase prices for each customer profile and also higher than the contractual prices in the sales contracts, the costs of fulfilling contractual commitments will exceed the expected economic benefits from the contracts.

As a result, the Group set up new current provisions for onerous electricity supply contracts in the amount of EUR 4,453 thousand (the Company in the amount of EUR 3,742 thousand). The amount was calculated based on estimated economic benefits, sales prices agreed with customers, and costs arising from energy supply contracts. The calculation used forecast market prices for electricity for 2025. The Group’s provision for this in 2023 stood at EUR 6,150 thousand. The Group does not have a newly established provision for onerous natural gas supply contracts, while in 2023 it had provisions amounting to EUR 5,688 thousand.

Provisions for employee post-employment and other non-current benefits

Other provisions also include provisions for employee post-employment and other non-current benefits relating to employees at third-party operated service stations of the Petrol Group. The provisions amount to the estimated future payments for post-employment benefits on retirement and jubilee benefits discounted to the end of the reporting period. The calculation is performed separately for each employee by taking into account the costs of the post-employment benefits on retirement and the costs of all the expected jubilee benefits until

Changes in the provisions for employee post-employment and other non-current benefits at third-party operated service stations

Petrol d.d.

Post-employment Benefits
Jubilee benefits Total
As at 1 January 2023 1,415 1,162 2,577
Current service cost (64) (105) (169)
Post-employment benefits paid 161 185 346
Actuarial surplus/deficit (144) (174) (318)
As at 31 December 2023 1,368 1,068 2,436
Current service cost (65) (65) (130)
Post-employment benefits paid (194) (133) (327)
Actuarial surplus/deficit 5 - 5
As at 31 December 2024 1,114 870 1,984

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report 409

Public

The calculation of the provisions for employee post-employment and other non-current benefits is based on the actuarial calculation, which relied on the following assumptions:

  • a 3.14-percent annual discount rate (2023: 3.48-percent), which is based on the yield of a 10-year AA-rated euro corporate bond,
  • the currently applicable amount of post-employment and jubilee benefits specified in the internal acts;
  • staff turnover, primarily depending on their age;
  • mortality based on the most recent mortality tables for the local population.

It is assumed that the average salaries will increase by 2 percentage points and, in addition, that individual salaries will increase by 0.5 percentage point.

Sensitivity analysis

Discount rate Salary increase Staff turnover Change in Percentage points Percentage points Percentage points
Change by 1.0 -1.0 1.0 -1.0 1.0 -1.0
Effect on the balance of provisions for employee post-employment and other non-current benefits (in EUR thousand) (257) 301 302 (263) (274)

5.35 Deferred income

The Petrol Group

Petrol d.d.

31 December

(in EUR thousand) 2024 2023 2024 2023
Non-current deferred income
Deferred income from grants 25,386 27,929 24,836 26,473
Funds received from European projects 6,506 8,235 5,208 2,233
Other deferred income 7,026 3,642 2 815
Total 38,918 39,806 30,046 29,521

Current deferred income

Deferred income from grants 3,000 2,877 2,848 2,837

Funds received from European projects

8,847 386
8,847 386
Other deferred income 468 2,356 171 2,238
12,315 5,619 11,866 5,461
Total deferred income 51,233 45,425 41,912 34,982

The Petrol Group

Changes in deferred income

Non-current deferred income Funds received from European projects Other deferred income Total
(in EUR thousand) from grants projects
As at 1 January 2023 29,273 7,014 3,644 39,931
Increase 3,661 2,067 503 6,231
Decrease (5,005) (846) (506) (6,357)
Foreign exchange differences - - 1 1
As at 31 December 2023 27,929 8,235 3,642 39,806
Increase 1,008 14,108 4,812 19,928
Decrease (3,551) (15,837) (1,428) (20,816)
As at 31 December 2024 25,386 6,506 7,026 38,918

Deferred income refers to funds received based on European projects and cohesion funding pertaining to energy solutions.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Changes in deferred income

Non-current deferred income Funds received from European projects Other deferred income Total
(in EUR thousand) from grants projects
As at 1 January 2023 27,700 1,193 688 29,581
Increase 3,662 1,743 451 5,856
Decrease (4,889) (703) (324) (5,916)
As at 31 December 2023 26,473 2,233 815 29,521
New acquisitions as a result of merger by absorption 853 - - 853
Increase 989 18,279 56 19,324
Decrease (3,479) (15,304) (869) (19,652)
As at 31 December 2024 24,836 5,208 2 30,046

5.36 Borrowings and other financial liabilities


The Petrol Group

Petrol d.d.

31 December

(in EUR thousand) 2024 2023 2024 2023
Current borrowings and other fin. liabilities
Bank loans 99,181 70,012 46,324 33,611
Bonds issued 195 33,252 195 33,252
Other loans 120 428 229,853 155,188
99,496 103,692 276,372 222,051
Non-current borrowings and other fin. liabilities
Bank loans 243,029 335,662 228,948 268,686
Bonds issued 11,000 10,996

The Petrol Group

In 2024, the average interest rate on current and non-current sources of finance (including interest rate hedging) stood at 2.92 percent p.a. (2023: 2.24 percent p.a.).

The lending banks require that the financial covenants defined in the loan agreements are maintained at the Petrol Group level. Failure to meet the prescribed covenant values may result in early loan maturity. The Group is in compliance with all financial covenants at the end of year, which demonstrates a healthy liquidity position and confirms the banks’ confidence in the Group’s continuing operations.

Bonds issued

Bond liabilities refer to the bonds issued by Petrol d.d., Ljubljana and listed on the Ljubljana Stock Exchange as PET4 and PET5 bonds for 2023 and PET4 bond for 2024.

On 22 February 2017, Petrol d.d., Ljubljana issued PET4 bonds at the total nominal amount of EUR 11,000 thousand and an interest rate of 1.5 percent + 6 M EURIBOR p.a. The bond maturity date is 22 February 2027.

On 21 June 2017, Petrol d.d., Ljubljana issued PET5 bonds at the total nominal amount of EUR 32,828 thousand. The interest rate is 1.2 percent p.a. The bonds matured on June 21, 2024. The company repaid the issued bonds in accordance with expectations and without delays.

Petrol d.d., Ljubljana

In 2024, the average interest rate on current and non-current sources of finance (including interest rate hedging) stood at 3.07 percent p.a. (2023: 2.30 percent p.a.). The average interest rate calculation does not include interest rates on loans received by group companies.

The Company’s liabilities arising from bonds are explained in more detail in the note pertaining to the Group.

Other loans

Other loans obtained by the Company relate mainly to loans from subsidiaries amounting to EUR 250,763 thousand (2023: EUR 176,097 thousand), as shown in the table below.

Petrol d.d. (in EUR thousand) 31 December 2024 31 December 2023
Petrol d.o.o. 118,037 92,193
Geoplin d.o.o. Ljubljana

Changes in borrowings and other financial liabilities

The Petrol Group

Petrol d.d.

2024 2023 2024 2023
As at 1 January 450,729 489,432
Company 2024 2023
IGES d.o.o. 87,688 37,345
Petrol BH Oil Company d.o.o. Sarajevo 15,633 15,823
Petrol Trade Handelsgesellschaft m.b.H. 14,977 14,219
Petrol Geo d.o.o. 10,914 12,035
E3 d.o.o. 2,084 3,666
Petrol Skladiščenje d.o.o. 1,307 -
Petrol Pay d.o.o. 123 116
- 400
Geoenergo d.o.o. - 300
Total 250,763 176,097

New acquisitions as a result of merger by absorption 522,733 590,421
Proceeds from borrowings 334,542 1,552,485 2,911,419 2,777,681
Repayment of borrowings (398,014) (1,592,469) (2,843,443) (2,849,458)
Payments for bonds issued (32,828) - (32,828) -
Non-cash reduction of borrowings - - (22,251) -
Interest expense 21,732 22,327 22,935 22,587
Interest paid (22,289) (21,067) (21,359) (18,498)
Foreign exchange differences 4 21

As at 31 December

2024 2023 2024 2023
Non-current lease liabilities 130,942 99,759 29,461 27,579
Current lease liabilities 20,556 21,055 5,723 4,318
Total lease liabilities 151,498 120,814 35,184 31,897

The Group’s lease liabilities include liabilities arising from contracts for the leased assets, the value of which was determined in accordance with the IFRS 16.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Changes in lease liabilities

The Petrol Group

Petrol d.d.

(in EUR thousand)

2024

2023

As at 1 January

2024 2023
Total 120,814 118,599
Increase 31,897 31,297
Cancellation (679) (622)
Lease payments (20,743) (20,484)
Interest expense 4,672 4,114
Interest paid (4,672) (4,114)
Foreign exchange differences 17 49

As at 31 December


5.38 Non-current operating liabilities

All non-current operating liabilities include the liabilities of Petrol d.d., Ljubljana.

The Petrol Group

Petrol d.d.

31 December 31 December 31 December 31 December
(in EUR thousand) 2024 2023 2024 2023
Liabilities arising from assets received for administration 442 507 442 507
Liabilities arising from interests acquired - 24 - 24
Total non-current operating liabilities 442 531 442 531

The Petrol Group and Petrol d.d., Ljubljana

The Group’s/Company’s liabilities arising from assets received for administration relate largely to property, plant and equipment received for administration from municipalities under concession agreements. Liabilities are reduced in line with the depreciation of the assets received for administration.

5.39 Current operating liabilities

The Petrol Group

Petrol d.d.

31 December

31 December

31 December

31 December

(in EUR thousand) 2024 2023 2024 2023
Current financial liabilities 539,452 732,510 401,162 583,652
Trade liabilities 450 2,450 450 2,450
Liabilities arising from interests acquired 166 769 166 769
Liabilities associated with the allocation of profit or loss 3,033 1,632 392 1,666
Total Current Financial Liabilities 543,101 737,361 402,170 588,537
Current non-financial liabilities Excise duty liabilities 78,025 68,475 55,323 51,713
Value added tax liabilities 45,648 50,480

Liabilities

Liabilities for environmental charges and contributions 21,771
19,610
Liabilities to employees 20,609
10,970
15,010
8,436
Other liabilities to the state and other state institutions 13,452
11,691
8,880
7,532
Social security contribution liabilities 2,881
12,899
169
7,926
Import duty liabilities 2,453
2,063
1,297
1,114
Total current operating and other liabilities 164,897
158,259
102,450
96,330

In 2024, the liabilities associated with the allocation of profit or loss increased based on the General Meeting decision on the payment of dividends of EUR 74,001 thousand (2023: EUR 61,667 thousand) and decreased based on the payment of dividends to shareholders for 2023 in the same amount.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report 413

Public

Geoplin d.o.o.'s business with the supplier Gazprom

In 2022, the subsidiary Geoplin d.o.o. recorded a negative operating result, resulting from the non-supply of natural gas under a non-current contract with the Russian company Gazprom. After conducting an analysis of the business damage incurred by the end of 2022, the Group notified Gazprom of the incurred realised damage and that it would offset the open liability for supplied natural gas with a proportional share of claims from the incurred damage. At the same time, due to the non-supply of natural gas and to prevent further damage, the contract with Gazprom was terminated. In 2023, the assessment of the realised damage continued by engaging specialised technical advisers for arbitration proceedings, and at the same time, arbitration was initiated before the court in Vienna. The first hearings are scheduled for 2025.

For financial reporting purposes, the Geoplin d.o.o. subsidiary commissioned an independent valuator on December 31, 2024 to assess the fair value of liabilities to Gazprom. Similar to previous years, the valuation was drawn up based on the scenario method of different present values of expected cash flows from this liability. The valuation took into account the offsetting of claims for incurred operating losses with liabilities to Gazprom, as the Group's claims for incurred losses exceed liabilities to Gazprom, the increase in liabilities for any accrued default interest, and also the potential costs of the arbitration proceedings. The valuation used required rates of return ranging between 20 and 30 percent (2023: between 15 and 25 percent; increase due to arbitration awards rendered so far) and an expected resolution of the arbitration proceedings within one to two years.

The calculated fair value of the liability has not changed significantly compared to previous years and accounts for 5.4 percent (2023: 4.9 percent) of the original value of the debt. In the event of an increase or decrease in the discount rate, the fair value would decrease by EUR 66 thousand or increase by EUR 76 thousand. The Group estimates that a change in the remaining calculation assumptions would not have a significant impact on the fair value of these liabilities.

Among the liabilities to suppliers is the obligation to Gazprom, measured at fair value of EUR 4,851 thousand.

5.40 Contract liabilities

The Petrol Group

Petrol d.d.

31 December

(in EUR thousand) 2024 2023
Current prepayments and securities given 18,230 21,360
Deferred prepaid card revenue 3,852 3,338
Other 54 593

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

5.41 Other liabilities

Liabilities Petrol Group 31 December 2024 Petrol Group 31 December 2023 Petrol d.d. 31 December 2024 Petrol d.d. 31 December 2023
Accrued costs of materials and goods 31,949 6,799 29,091 2,215
Accrued labour costs 14,072 14,772 13,478 14,267
Accrued other costs 12,712 5,517 7,365 2,726
Accrued annual leave expenses 4,685 3,845

Total contract liabilities

22,136

25,291

16,227

16,977

Revenue related to prepayments and securities received from customers is expected to be recognised in the financial statements within two months of the received prepayment or security.

Accrued costs of services 2,931 2,452
Accrued expenses for tanker demurrage 3,284 5,453 1,927 3,651
Accrued costs of intellectual services 2,238 1,447 2,238 1,349
Accrued costs of services provided to energy solutions 906 353 1,139 183
Liabilities for network charges 762 2,035 - -
Accrued concession fee costs 544 5,005 544 4,132
Accrued motorway site lease payments 301 319 301 319
Accrued charges for payment cards 165 153 165 153
13 5

Accrued costs of electricity and gas

3,571 225 6,687

Total other liabilities

71,631 49,274 59,404 38,134

6. Financial instruments and risk management

This chapter presents disclosures about financial instruments and risks, whereas risk management is explained in the Risk Management section of the business report.

6.1 Credit risk

In 2024, the Group/Company continued to actively monitor the balances of trade receivables and to apply strict terms based on which open account sales are approved, requiring an adequate range of high-quality collaterals and pursuing the active collection of receivables.

The Expected Credit Loss (ECL) is calculated as the product of:

  • unsecured receivables from the partner, for the calculation of which credit insurance, bank guarantees, high-quality guarantees, mortgages and any Earnings at Default (EAD) liabilities to the partner are taken into account as eligible collateral,
  • probability of default by the partner based on an internally developed model that takes into account the Group’s business data with the partner and the partner’s financial data (5 selected financial indicators with statistically strong explanatory power), the external credit rating of the country in which the partner is domiciled and the estimated cyclicality of the industry in which the company operates (Probability of Default – PD).

The Group and the Company use a simplified lifetime expected credit loss model to value receivables in accordance with the IFRS 9.

The carrying amount of financial assets accounts for the maximum exposure to credit risks and was as follows as at 31 December 2024:

The Petrol Group Petrol d.d. 31 December 2024 31 December 2023
Financial assets at fair value through other comprehensive income 27,850

Financial Overview

Non-current loans 3,994 25,628 2,118
Non-current operating receivables 1,154 2,362 22,334 29,072
Contract assets 7,626 8,468 7,621 8,452
Current loans 5,281 6,053 5 212
Current trade receivables (excluding receivables from the state) 1,081 775 46,828 38,642
Derivative financial instruments 673,684 794,205 417,550 539,650
Cash and cash equivalents 25,962 26,547 17,782 24,022
Total assets 76,861 105,937 30,555 33,020

819,499

948,341

568,303

675,188

The item most exposed to credit risk on the reporting date was the current operating receivables. As at 31 December 2024, compared to the end of 2023, they decreased by 15.18 percent in the Group and 22.63 percent in the Company in nominal terms.

The Group’s current operating receivables by maturity

Breakdown by maturity

Up to 30 days Including 30 to overdue Including 60 to overdue More than 90 days overdue Total
Trade receivables Expected loss rate 2% 2% 2% 88% 73%
Gross value 693,753 58,507 14,129 3,830 54,640 824,859
Allowance (11,481) (1,084) (245) (3,379) (39,956) (56,144)
682,272

Current Page

Interest receivables Gross value Allowance
57,423 958 (912)
13,884 - -
451 - -
14,684 - -
768,714 912 (886)
1,871 1,798 46
- - -
- 26 72

Other receivables (excluding receivables from the state)

Expected loss rate Gross value
6% 23,464
6% 2,976
6% 2
90% -
49% 993

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Financial Overview

Allowance 27,434
(1,346) (183)
- -
(486) (2,016)
Total as at 31 December 2023 22,117
2,793 1
- 507
25,418 704,435
60,216 13,885
451 15,217
794,204

Breakdown by maturity

Not yet due Up to 30 days overdue Including 30 to 60 days overdue Including 60 to 90 days overdue More than 90 days overdue Total
Trade receivables
Expected loss rate 2% 1%

Financial Summary

Gross Value

Category Value
Gross value 573,708
Allowance (9,994)
Net Value 563,714

Interest Receivables

Category Gross Value Allowance Net Value
Interest receivables 868 (836) 32
- -
- -
740 (723)
1,608 (1,559)

Other receivables (excluding receivables from the state)

Expected loss rate 4% 4% 0% 100% 90%
Gross value 19,187 420 4 7 775 20,393
Allowance (808) (18) - (7) (695) (1,528)
Total as at 31 December 2024 582,125 74,535 11,691 267 5,066 673,684

The Company’s current operating receivables by maturity

Breakdown by maturity

Up to 30 days Including 30 to 60 days overdue Including 60 to 90 days overdue More than 90 days overdue Total
Trade receivables Expected loss rate 2% 2% 2% 74% 50%
Gross value 482,971 24,571 6,898 2,622 39,353 556,416
Allowance (7,782) (452) (134) (1,948) (19,699) (30,014)
Net value 475,189 24,119 6,764 674 19,655 526,402

Interest receivables

Gross value 765 - - - 1,998 2,764
Allowance (759) - - - (610) (1,368)
Other receivables (excluding receivables from the state) Expected loss rate 5% 5% - 85% 31%
Gross value 11,857 125 - - 631 12,613
Allowance (557) (6) - - - -

Current Page

Total as at 31 December 2023

Total 11,300 120 - - 433 11,853
Total 486,496 24,239 6,764 674 21,476 539,650

Breakdown by maturity

Not yet due Overdue Including 30 to 60 days overdue Including 60 to 90 days overdue More than 90 days overdue Total
Trade receivables Expected loss rate 1% 1% 1% 71% 84%
Gross value 379,702 26,193 4,679 1,439

Financial Overview

Allowance Current Amount
Gross value 24,358
Interest receivables 436,372
Allowance (5,247)
(370) (68)
(1,015) (20,518)
(27,219) 374,455
Other receivables (excluding receivables from the state) 25,823
Expected loss rate 3%
Interest receivables Gross value
649 -
- 552
1,201 Allowance
(649) -
- (552)
(1,201) -
- -
- -
- 0

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Changes in allowances for the current operating receivables of the Group

Allowance for current operating receivables Allowance for current interest receivables Total
(in EUR thousand)
As at 1 January 2023 (60,956) (1,239) (62,195)
Creation/reversal of allowances affecting profit or loss 1,031 17 1,049
Changes in allowances not affecting profit or loss 13 (678) (665)
Write-offs 1,752 102 1,853
As at 31 December 2023 (58,160) (1,798) (59,958)

Changes in allowances for the current operating receivables of the Company

(in EUR thousand) current receivables Total
current operating receivables current interest receivables
As at 1 January 2024 (58,160) (1,798) (59,958)
Creation/reversal of allowances affecting profit or loss (5,265) (2) (5,267)
Changes in allowances not affecting profit or loss (3) 76 73
Write-offs 1,880 165 2,045
Foreign exchange differences (2) - (2)
As at 31 December 2024 (61,550) (1,559) (63,109)

Changes in allowances for the current operating receivables of the Company

(in EUR thousand) current receivables Total
current operating receivables current interest receivables
As at 1 January 2023 (31,059) (844) (31,903)
Creation/reversal of allowances affecting profit or loss (655) - (655)
Changes in allowances not affecting profit or loss - (565) (565)
Write-offs 938 41 979
As at 31 December 2023 (30,775) (1,368) (32,143)

Changes in allowances for the current operating receivables of the Company

(in EUR thousand) current receivables Total
current operating receivables current interest receivables
As at 1 January 2024 (30,775) (1,368) (32,143)
Creation/reversal of allowances affecting profit or loss 1,672 - 1,672
Changes in allowances not affecting profit or loss - 109 109
Write-offs 1,604 58 1,662
As at 31 December 2024 (27,499) (1,201) (28,700)

Collateralisation of receivables

The Petrol Group

Petrol d.d.

(in EUR thousand) 31 December 2024 31 December 2023
Current trade receivables 714,792 824,859
Allowances (60,022) (56,144)
Current interest receivables 436,372 556,416
Allowances (27,219)

Current Trade Receivables

Current trade receivables including allowances 654,770 768,714 409,153 526,402
Overdue current trade receivables (gross) 141,084 131,106 56,669 73,445
Share of overdue receivables and outstanding receivables 20 % 16 % 13 % 13 %

Current Operating Receivables Over EUR 100 Thousand, Secured with High-Quality Collaterals (Coverage)

Credit insurance 257,655 253,311 110,815 114,753
Supplier (offsetting transaction) 117,300 197,451 87,417 187,055
Bank guarantee 10,053 10,461 4,498 2,894
Lien 10,070 9,312 4,156 4,952
High-quality guarantee

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Current Operating Receivables

Received prepayments and collaterals 12,449 6,968 7,902 6,568
Total current operating receivables over EUR 100 thousand, secured with high-quality collaterals (coverage) 4,412 5,590 2,848 5,064
Collateral coverage (in %) 73 % 87 % 72 % 87 %

The presented collaterals include only high-quality collaterals, such as bank or corporate guarantees, offsetting transactions (suppliers), credit insurance with insurance companies, securities and mortgages. Bills of exchange, enforcement drafts and promissory notes are excluded because they have a lower level of collectability.

The receivable from the Group’s largest single customer stood at EUR 47.746 thousand as at 31 December 2024 (the customer is a company), accounting for 6.68 percent of the Group’s trade receivables. The receivable from the Company’s largest single customer stood at EUR 47,746 thousand as at 31 December 2024 (the customer is a company), accounting for 10.94 percent of the Company’s trade receivables.

The receivables mainly relate to domestic and foreign trade receivables arising from the wholesale of goods and services and the sales of goods to holders (natural persons) of the Petrol Club card.

The structure of wholesale and retail customers is diversified, meaning there is no significant exposure to a single customer. The Group had 42,224 active customers (legal persons) as at 31 December 2024. The Group/Company has an IT-based system of grades, ratings and blocks in place, enabling it to constantly monitor its customers.

The Group/Company improves the system for the monitoring of credit risks on a steady basis. In 2024, the system of limits adopted at the Petrol Group level was applied consistently. The Group/Company measures the degree of receivables management in days’ sales outstanding.

The Petrol Group

Petrol d.d.

(in days) 2024 2023

2024

2023

Days sales outstanding

Contract days 41 40 37 36
Overdue receivables in days 5 5 4 3
Total days sales outstanding 46 45 41 39

Commodity loans granted to buyers in order to reschedule the settlement of receivables are largely collateralised (usually through mortgages). The loans granted by the Company refer mainly to loans to subsidiaries. The Company regularly assesses the possibility of the loans’ repayment, the possibility of realising the collateral or whether the value of the collateral is still adequate compared to the value of the investment. If the Company considers that a loan is not fully collectable, an allowance is made for the uncollectable amount. The Company systematically monitors the operations of Group companies, thus adequately limiting credit risk. In 2024, the Group recorded an allowance for loans of EUR 979 thousand.

The majority of the Petrol Group’s cash and cash equivalents are held in bank accounts with banks that are part of banking groups with a high external rating (“investment grade”) by Standard & Poor’s, Moody’s and Fitch. The credit risk from these exposures is consequently assessed as very low, with only 0.5 percent of cash and cash equivalents at unrated banks.

6.2 Liquidity risk

In 2024, the Petrol Group continued to pay close attention to developments in the EU and globally. In view of the ongoing war in Ukraine and additional tensions in the Middle East, the Petrol Group continues to be intensively active and to pay greater attention and caution to liquidity risk management, especially in connection with the potential increased volatility in the energy market.

Successful management of the Group’s/Company’s liquidity risk in line with Standard & Poor’s guidelines remains a key objective despite the challenging circumstances.

The Group/Company manages liquidity risks through:

  • maintaining the level of debt at an appropriate level (measured as the net debt to EBITDA ratio) as laid down in the strategy and business plan;
  • ensuring adequate structural liquidity in accordance with S&P methodology;
  • standardised and centralised treasury management at the Group level;
  • the annual planning of funds required by the Petrol Group;
  • the daily planning and simulating of cash flows for the parent company and its subsidiaries performed by day and for two or three months in advance, which is currently an extremely important tool;
  • a common approach to banks in domestic and foreign financial markets;
  • computer-assisted system for managing the cash flows of the parent company and all its subsidiaries;
  • the centralised collection of available cash through cash pooling.

Despite some easing of the energy commodity price situation in 2024, the Group’s focus on optimizing cash flows and ensuring a stable liquidity position remains high. Additionally, the Group/Company has established credit lines both domestically and

internationally, which ensure that the Group can meet all its due liabilities at any given moment. The majority of financial liabilities arising from non-current and current loans are held by the parent company, which also generates the majority of the revenue.

The Group’s liabilities by maturity

Contractual cash flows Carrying amount of liabilities (in EUR thousand) 0 to 6 months 6 to 12 months 1 to 5 years More than 5 years
Non-current borrowings and other financial liabilities 347,037 378,331 - - 372,295 6,036
Non-current lease liabilities 99,759 120,379 - - 73,543 46,836
Non-current operating liabilities (excluding other liabilities) 24 24 - - 24 -
Current borrowings and other financial liabilities 103,692 122,023 74,686 - - -

Financial Liabilities

Current lease liabilities 21,055 23,616 12,245 11,371
Liabilities arising from commodity forward contracts* 733,409 319,920 283,495 129,994
Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) 737,361 737,361 736,894 467
Derivative financial instruments 22,734 22,734 22,734
As at 31 December 2023 1,331,662 2,137,877 1,166,479 342,671 575,856 52,872

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Contractual cash flows

Liability Carrying amount of liabilities (in EUR thousand) 0 to 6 months 6 to 12 months 1 to 5 years More than 5 years
Non-current borrowings and other financial liabilities 254,380 265,292 - - 262,373 2,919
Non-current lease liabilities 130,942 157,297 - - 84,944 72,353
Current borrowings and other financial liabilities 99,496 109,835 84,136 25,699 - -
Current lease liabilities 20,556 26,570 13,338 - - -

Liabilities

Liabilities arising from commodity forward contracts* 352,007 170,482 164,500 17,025
Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) 543,101 543,101 538,215 4,886
Derivative financial instruments 21,516 21,516 21,516

As at 31 December 2024

The Company’s liabilities by maturity Contractual cash flows Carrying amount of 6 to 12 More than 5
1,069,991 1,475,618 827,687 208,317 364,342 75,272

Liabilities (in EUR thousand)

Liability 0 to 6 months 1 to 5 years
Non-current borrowings and other financial liabilities 300,682 327,843
Non-current lease liabilities 27,579 36,579
Non-current operating liabilities (excluding other liabilities) 24 24
Current borrowings and other financial liabilities 222,051 239,050
Current lease liabilities 4,318 5,619

Liabilities

Liabilities arising from commodity forward contracts* 727,966 316,833 281,138 129,994
Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) 588,537 588,537 588,200 337
Derivative financial instruments 2,071 2,071 2,071
Contingent liab. for guarantees issued** 542,533 542,533

As at 31 December 2023

1,145,262 2,470,222 1,547,601 428,181 474,897 19,543

Contractual cash flows

Carrying amount of liabilities (in EUR thousand) 0 to 6 months 6 to 12 months 1 to 5 years More than 5 years
Non-current borrowings and other financial liabilities 260,948 270,525 - - 270,525
Non-current lease liabilities 29,461 40,640 - - 18,850 21,790
Current borrowings and other financial liabilities 276,372 289,914 111,442 178,472 -
Current lease liabilities 5,723 8,506 4,282 4,224 -

Liabilities

Liabilities arising from commodity forward contracts* 349,239 169,110 163,104 17,025 -
Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) 402,170 402,170 400,720 1,450 -
Derivative financial instruments 16,240 16,240 16,240 - -
Contingent liab. for guarantees issued** - 574,143 574,143 - -
As at 31 December 2024 990,914 1,951,377 1,275,937 347,250 306,400 21,790
  • Liabilities arising from commodity forward contracts entered into for purchasing purposes represent contractual cash outflows based on these contracts. At the same time, the Group/Company will receive corresponding payments based on offsetting commodity contracts entered into for selling purposes.

** A maximum amount of contingent liabilities is allocated to the period in which the Company can be requested to make a payment.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

6.3 Foreign exchange risk

The Group

The Petrol Group

31 December 2023 (in EUR thousand)

EUR USD BAM RSD RON Other Total
Cash and cash equivalents 76,271 1,886 8,238 10,559 3,196 5,786 105,937
Current operating receivables (excluding rec. from the state) 725,036 1,128 35,610 31,136 442 853 794,205
Non-current operating receivables 8,466 - - 2 - - 8,468
Current loans 759 - - - - - 759

16

Non-current loans 2,360
Assets from derivative financial instruments 26,547
Non-current operating liabilities (excluding other liabilities) (24)
Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) (548,516) (181,173) (2,707) (1,422) (884) (2,660) (737,361)
Non-current borrowings and other financial liabilities (347,037)

Financial Liabilities

Non-current lease liabilities (347,037)
Current borrowings and other financial liabilities (103,692)
Current lease liabilities (19,900)
Liabilities from derivative financial instruments (10,912)
Exposure of the statement of financial position (283,518)
(92,875) (3,407) (3,477) (99,759)
(486) (669) (21,055)
(11,822) (22,734)
(189,982) 37,249 36,129 2,757

The Petrol Group

31 December 2024

(in EUR thousand) EUR USD BAM RSD RON Other Total
Cash and cash equivalents 53,636 4,086 3,513 10,420 1,259 3,947 76,861
Current operating receivables (excluding rec. from the state) 607,037 1,287 28,351 36,463 442 104 673,684
Non-current operating receivables 7,624 - - 2 - - 7,626
Current loans 1,065 - - - - 16 1,081
Non-current loans 1,154 - - - - - 1,154
Assets from derivative financial instruments 25,153 809 - - - - 25,962
Non-current operating liabilities (excluding other liabilities) - - - - - - -
Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) (371,310) (166,892) (2,403) (1,769) (7) (720) (543,101)
Non-current borrowings and other financial liabilities (254,380) - - - - - (254,380)
Non-current lease liabilities (123,502) - (3,014) (4,426) - - (130,942)
Current borrowings and other financial liabilities (99,496) - - - - - (99,496)
Current lease liabilities (18,936) - (531) (1,089) - - (20,556)
Liabilities from derivative financial instruments (16,894) (4,622) - - - - (21,516)
Exposure of the statement of financial position (188,849) (165,332) 25,916 39,601 1,694 3,347 (283,623)
Nominal value of currency forward contracts (286,635) 286,635 - - - - -
Net exposure of the statement of financial position (475,484) 121,303 25,916 39,601 1,694 3,347 (283,623)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Public

The Company

Petrol d.d.

31 December 2023

(in EUR thousand) EUR USD BAM RSD RON Other Total
Cash and cash equivalents 23,672 529 - 29 3,078 5,712 33,020
Current operating receivables (excluding rec. from the state) 538,876 - - - - 774 539,650
Non-current operating receivables 8,452 - - - - - 8,452
Current loans 38,642 - - - - - 38,642
Non-current loans 29,072 - - - - - 29,072
Assets from derivative financial instruments 24,022 - - - - - 24,022

Non-current operating liabilities (excluding other liabilities)

(24) - - - - (24)

Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments)

(254,284) (149,016) - - (944) (184,293) (588,537)

Non-current borrowings and other financial liabilities

(300,682) - - - - - (300,682)

Non-current lease liabilities

(27,579) - - - - - (27,579)

Current borrowings and other financial liabilities

(222,051) - - - - - (222,051)

Current lease liabilities

(4,318) - - - - - (4,318)

Liabilities from derivative financial instruments

(1,837) (234) - - - - (2,071)

Exposure of the statement of financial position

(148,040) (148,720) - 29 2,134 (177,807) (472,404)

Nominal value of currency forward contracts

(126,733) 126,733 - - - - -

Net exposure of the statement of financial position

(274,773) (21,987) - 29 2,134 (177,807) (472,404)

Petrol d.d.

31 December 2024

(in EUR thousand) EUR USD BAM RSD RON Other Total
Cash and cash equivalents 28,110 600 1 29 1,251 564 30,555
Current operating receivables (excluding rec. from the state) 415,828 1,177 - - 442 103 417,550
Non-current operating receivables 7,621 - - - - - 7,621
Current loans 46,828 - - - - - 46,828
Non-current loans 22,334 - - - - - 22,334
Assets from derivative financial instruments 16,495 1,287 - - - - 17,782
Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments) (256,632) (144,904) - - (18) (616) (402,170)
Non-current borrowings and other financial liabilities (260,948) - - - - - (260,948)
Non-current lease liabilities (29,461) - - - - - (29,461)
Current borrowings and other financial liabilities (276,372) - - - - - (276,372)
Current lease liabilities (5,723) - - - - - (5,723)
Liabilities from derivative financial instruments (14,977) (1,263) - - - - (16,240)
Exposure of the statement of financial position (306,897) (143,103) 1 29 1,675 51 (448,244)
Nominal value of currency forward contracts (138,186) 138,186 - - - - -
Net exposure of the statement of financial position (445,083) (4,917) 1 29 1,675 51 (448,244)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Public

The following exchange rates prevailed in 2024 and 2023:

For 1 EUR 31 December 2024 31 December 2023
USD 1.0444 1.1050
BAM 1.9558 1.9558
RSD 116.9600 117.4100
CZK 25.2260 24.7240
RON 4.9765 4.9756
MKD 61.5860 61.6110
HUF 411.5300 382.8000
CHF 0.9435 0.9260
BGN 1.9558 1.9558

As far as foreign exchange risks are concerned, the Group/Company is most exposed to the risk of changes in the EUR/USD exchange rate arising from the procurement of petroleum products and natural gas, as these are primarily purchased in US dollars and sold in the domestic or foreign markets in the local currencies.

The Group hedges against the exposure to changes in the EUR/USD exchange rate by fixing the exchange rate to secure cash flows from purchases of petroleum products and natural gas.

The hedging instruments used in this case are currency forward contracts entered into with banks.

The effect of currency forward contracts

The Petrol Group

Petrol d.d.

(in EUR thousand)

2024 2023

2024

2023

Unrealised loss - (10,423) - (1,348)
Unrealised gain 9,210 - 1,590 -
Realised loss (7,333) (3,374) (6,046) (8,223)
Realised gain 14,604 9,235 21,221 8,888
Total effect of currency forward contracts 16,481 (4,561) 16,765 (683)

Given that the counterparties for entering into forward contracts for hedging foreign exchange risks are top-tier European banks, the Group/Company assesses that the risk of counterparty default is minimal. The Group is also exposed to foreign exchange risks in its dealings with subsidiaries in Southeast Europe. Considering the low volatility of local currency exchange rates in Southeast European markets and the relatively low exposure, the Group/Company believes it is not significantly exposed to risks in this area. To manage these risks, the Group/Company primarily relies on natural hedging.

Exposure to currencies in other markets where the Group/Company operates through its companies is either smaller or the exchange rates are significantly less volatile compared to the euro. We estimate that a change in the exchange rate would not materially impact the financial result.

The Group/Company regularly monitors its open currency position and sensitivity based on the VaR method for all currencies to which it is exposed.

An unfavorable change in any currency pair by 10 percent would decrease the net profit by a maximum of EUR 3,930 thousand (2023: EUR 3,600 thousand), with the EUR/BAM currency pair being treated as fixed.

6.4 Price and volume risk

The Group/Company is exposed to price and volume risks arising from energy commodity trading. These risks are primarily managed by aligning energy purchases and sales in terms of both quantities and purchase-sale conditions, thereby protecting the generated margin on energy commodities. Limits are set based on the business model of the energy commodity to restrict exposure to price and volume risks.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report 424

Public

To hedge the sales margin in petroleum product operations, the Group/Company primarily uses derivative financial instruments, specifically commodity swaps. The volume of hedging transactions with derivative financial instruments is determined by a limit system that regulates permissible exposures for each product and business partner in commodity swaps, in line with the Group's risk appetite. The partners for such transactions are global financial institutions, banks, or commodity suppliers, most of which are investment-grade companies, so the Group/Company assesses that the risk of counterparty default is minimal.

As part of the management of volume and price risks in petroleum product operations, regular adjustments to retail and wholesale plans were made and appropriate financial hedging transactions were entered into in the event of volume deviations from the limit system. The Group/Company is also exposed to price and volume risks in its electricity and natural gas business through sales to its customers in the retail and wholesale markets.

The Group uses derivative financial instruments (currency forward contracts) to hedge the risk of price volatility. The volume of derivatives entered into to hedge the price and volumetric risk depends on the forecast sales volumes for future periods and the limit system, with the aim being to buy volumes in stages.

The Group/Company has electricity generation wind farms and solar parks in Croatia; in addition to using such generated electricity for own consumption, it also sells it on the market. The Group uses derivatives (currency forward contracts) to hedge the risk of electricity price volatility. The volume of derivative transactions entered into to hedge the price risk of electricity sales depends on the forecast generation volumes for future periods and the limit system, whose main purpose is to ensure the required profitability of the projects.

The price risks in electricity trading are managed by the Group with a limit system defined depending on the business partner and the portfolio value at risk, and with appropriate processes in place to monitor these risks.

The volatility of energy commodity prices in recent years has significantly increased price and volume risks, so the Petrol Group regularly monitors the adequacy of the applied limit systems and updates and supplements them as necessary.

The effect of commodity swaps

The Petrol Group

Petrol d.d.

2024 2023 2024 2023
Unrealised loss (20,749) (11,822) (15,473) (234)
Unrealised gain 1,134 5,941 1,286 5,864
Realised loss (94,588) (142,067) (96,250) (151,997)
Realised gain

6.5 Interest rate risk

The Group/Company is exposed to interest rate risks because it takes out loans with a floating interest rate, which are mostly EURIBOR-based. In 2024, the Group/Company continued to monitor exposure to changes in net interest expenses in the case of interest rate changes.

The exposure to interest rate risks is hedged using the following instruments:

  • partly through ongoing operations, the Group’s/Company’s interest rate on past due operating receivables being indirectly EURIBOR-based;
  • partly through forward markets by entering into interest rate swaps;
  • taking out loans with a fixed interest rate.

The Group/Company uses hedge accounting on interest rate swaps. Hedged items and hedging instruments represent an effective hedging relationship, which is why interest rate risk hedging outcomes are recognised directly in equity.

EURIBOR interest rates in 2024 and 2023

6-month EURIBOR 3-month EURIBOR 1-month EURIBOR
Value as at 31/12/2023 (in percent) 3.861 3.909 3.845
Value as at 31/12/2024 (in percent) 2.568 2.714 2.845
Change in interest rate (in percentage points) (1.293) (1.195) (1.000)
The lowest value in 2024 (in percent) 2.562 2.678 2.762
The highest value in 2024 (in percent) 3.944 3.970 3.895
Change between the lowest and the highest interest rate (in percentage points) 1.382 1.292 1.133
Average value in 2023 (in percent) 3.694 3.433 3.245
Average value in 2024 (in percent) 3.484 3.574 3.561
Change in average interest rate (in percentage points) (0.210) 0.141 0.316

Interest rate swaps by maturity

The Petrol Group

Petrol d.d.

31 December

31 December

31 December

31 December

(in EUR thousand)

2024

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

2023

2024

Interest Rate Swaps

6 to 12 months 81,429 23,429 31,429 23,429
1 to 5 years 233,142 314,571 233,142 264,571
Total interest rate swaps 314,571 338,000 264,571 288,000

The effect of interest rate swaps

Unrealised gain/(loss) on effective transactions 962 (14,501) (3,530) (12,625)
Total effect of interest rate swaps 962 (14,501) (3,530) (12,625)

Financial instruments with a fixed interest rate

The Group’s/Company’s exposure to the risk of changing interest rates was as follows:

The Petrol Group

Petrol d.d.

31 December

2024 2023 2024 2023
Loans 963 963 67,198 61,772
Borrowings and other financial liabilities (25,091) (67,828) (261,811) (221,264)
Net financial instruments with a fixed interest rate (24,128) (66,865) (194,613) (159,492)
Financial instruments with a variable interest rate

31 December

2024 2023
Loans 1,272

Borrowings and other financial liabilities

(328,785) (382,901) (275,509) (301,469)

Net financial instruments with a variable interest rate

(327,513) (380,727) (273,545) (295,527)

Value of borrowings hedged using interest rate swaps

The Petrol Group

Petrol d.d.

31 December

31 December

31 December

31 December

(in EUR thousand)

2024 2023 2024 2023
Interest rate swaps (notional amount) 314,571 338,000 264,571 288,000
Total interest rate swaps 314,571 338,000 264,571 288,000

A change in the interest rate of 100 or 200 basis points on the reporting date would have increased (decreased) the net profit or loss by the amounts indicated below. The cash flow sensitivity analysis in the case of instruments with a variable interest rate assumes that all variables, in particular foreign exchange rates, remain unchanged. When performing the calculation, the value of the receivables (liabilities) with variable interest rates is further decreased by the total amount of interest rate swaps. This analysis was prepared in the same manner for both years.

Change in profit or loss in the case of an increase by 100 or 200 bp

The Petrol Group


Petrol d.d.

31 December

31 December

31 December

31 December

(in EUR thousand)

2024 2023 2024 2023
Cash flow variability (net)–100 bp (129) (427) (90) (75)
Cash flow variability (net)–200 bp (259) (855)

Change in profit or loss in the case of a decrease by 100 or 200 bp

The Petrol Group

Petrol d.d.

31 December

31 December

(in EUR thousand)

2024 2023 2024 2023
Cash flow variability (net)–100 bp 129 427 90 75
Cash flow variability (net)–200 bp 259 855

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

6.6 Capital adequacy management

The main purpose of capital adequacy management is to ensure the best possible financial stability, long-term solvency and the maximum shareholder value. The Group/Company also achieves this through a stable dividend disbursement policy for Company owners.

The financial stability of the Group/Company is also demonstrated by the S&P rating awarded at the end of June 2014. S&P Global Ratings reaffirmed Petrol d.d., Ljubljana’s ‘BBB-' long-term rating, its 'A-3' short-term credit rating and its 'stable' credit rating outlook on 22 December 2023. The credit rating was reaffirmed again in February 2025.

In 2024, the Petrol Group continued to implement its strategic indebtedness focus and maintained the net debt/equity ratio at acceptable levels that provide the Group with a stable position for future operations.

The Petrol Group

Petrol d.d.

31 December 2024 2023
Non-current borrowings and other financial liabilities 260,948 Non-current borrowings and other financial liabilities 347,037
Non-current lease liabilities 130,942 Non-current lease liabilities 99,759
Current borrowings and other financial liabilities 99,496 Current borrowings and other financial liabilities 103,692
Current lease liabilities 20,556 Current lease liabilities 21,055

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

6.7 Carrying amount and fair value of financial instruments

Presentation of financial assets and liabilities

The Petrol Group

31 December 2023

5,723 4,318 Total 505,374
571,543 572,504 554,630 Total equity
976,543 923,043 670,795 618,551
Debt/Equity 0.52 0.62 0.85 0.90
Cash and cash equivalents 76,861 105,937 30,555 33,020
Net financial liabilities 428,513 465,606 541,949 521,610
Net debt/Equity 0.44 0.50 0.81 0.84

Fair value

Fair value derivatives

Total through profit or loss through hedging Amortised cost comprehensive income carrying amount (in EUR thousand)
Financial assets at fair value through other comprehensive income Equity instruments - - - 3,994
Loans - - 2,362 - 2,362
Operating receivables - - 8,468 - 8,468

Total non-current financial assets


Financial Overview

Contract assets 10,831 3,994 14,825
Loans 6,053 6,053
Operating receivables (excluding receivables from the state) 794,205 794,205
Derivative financial instruments Interest rate swaps 20,606 20,606
Commodity derivative instruments 3,960 1,981 5,941
Cash and cash equivalents

Financial Assets and Liabilities

Total current financial assets 105,937
Total financial assets 933,517
Borrowings and other financial liabilities (336,041)
Debt securities (10,996)
Lease liabilities (99,759)
Operating liabilities (excluding other liabilities)

Financial Liabilities

Total non-current financial liabilities (446,821)
Borrowings (70,440)
Debt securities (33,252)
Lease liabilities (21,055)
Opera. liab. (excluding liab. to the state and employees) (737,361)
Derivative Interest rate swaps

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Financial Liabilities

Currency forward contracts (1,348) (9,075) - - (10,423)
Commodity derivative instruments (786) (11,036) - - (11,822)
Total current financial liabilities (2,134) (20,600) (862,109) - (884,843)
Total financial liabilities (2,134) (20,600) (1,308,930) - (1,331,664)

Fair Value

Fair value of through other

Financial Assets

Type Amortised cost Derivatives used for hedging Comprehensive income Total carrying amount (in EUR thousand)
Equity instruments - - - 27,850
Loans - - 1,154 -
Operating receivables - - 7,626 -
Total non-current financial assets - - 8,780 36,630
Contract assets - - - -

Loans

5,281

Operating receivables (excluding receivables from the state)

1,081

Interest rate swaps

15,618

Derivative financial instruments

Currency forward contracts

1,590 7,620 9,210

Commodity derivative instruments

810 324 1,134

Cash and cash equivalents


Financial Assets and Liabilities

Total current financial assets 76,861
Total financial assets 782,869
Borrowings and other financial liabilities 819,499
Borrowings (243,380)
Debt securities (11,000)
Lease liabilities (130,942)
Total non-current financial liabilities (385,322)

Borrowings and other financial liabilities

Borrowings (99,301)
Debt securities (195)
Lease liabilities (20,556)
Opera. liab. (excluding liab. to the state and employees) (543,101)
Derivative financial instruments Interest rate swaps (767)
Commodity derivative (15,832) (4,917)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Public

Petrol d.d., Ljubljana

Petrol d.d.

31 December 2023

instruments Total current financial liabilities (15,832) (5,684) (663,153) - (684,669)
Total financial liabilities (15,832) (5,684) (1,048,475) - (1,069,991)

Fair value

Fair value through

Fair value of

through other

profit or

derivatives used

Amortised

comprehensive

Total carrying

(in EUR thousand)

loss

for hedging

cost

income

amount

Financial assets at

fair value through

other


Equity instruments

Equity instruments - - 2,118 2,118
comprehensive income - - 29,072 - 29,072
Operating receivables - - 8,452 - 8,452
Total non-current financial assets - - 37,524 2,118 39,642
Contract assets - - 212 - 212
Loans - - 38,642 - 38,642
Operating receivables (excluding receivables from - - - - -

Financial Assets

Derivative financial instruments Interest rate swaps 18,158
Commodity derivative instruments 3,883 1,981 5,864
Cash and cash equivalents 33,020 33,020
Total current financial assets 3,883 20,139 611,524 635,546
Total financial assets 3,883 20,139 649,048 2,118 675,188

Borrowings

Borrowings

Financial Liabilities

Other financial liabilities (289,686)
Debt securities (10,996)
Lease liabilities (27,579)
Operating liabilities (excluding other liabilities) (24)
Total non-current financial liabilities (328,286)
Borrowings and other financial liabilities (188,799)

Debt securities

(33,252) (33,252)

Lease liabilities

(4,318) (4,318)

Opera. liab. (excluding liab. to the state and employees)

(588,537) (588,537)

Interest rate swaps

(489) (489)

Derivative financial instruments

Currency forward contracts

(1,348) (1,348)

Commodity derivative instruments

(234) (234)

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Financial Liabilities

Total current financial liabilities (1,582) (489) (814,906) - (816,977)
Total financial liabilities (1,582) (489) (1,143,192) - (1,145,263)

Fair Value

Fair value Fair value through Fair value of Amortised comprehensive Total carrying
(in EUR thousand) loss derivatives used for hedging cost income amount
Financial assets at fair value through other Equity instruments - - 25,628

25,628

comprehensive income

Loans - - 22,334 - 22,334
Operating receivables - - 7,621 - 7,621
Total non-current financial assets - - 29,955 25,628 55,583
Contract assets - - 5 - 5
Loans - - 46,828 - 46,828
Operating receivables (excluding receivables from the - - 417,550 - 417,550
state) Interest rate swaps

Financial Assets Overview

Derivative financial instruments Currency forward contracts 1,590
Commodity derivative instruments Cash and cash equivalents 30,555
Total current financial assets 2,552 15,230 494,938 512,720
Total financial assets 2,552 15,230 524,893 25,628 568,303
Borrowings and other

Borrowings

(249,948) (249,948)
financial liabilities Debt securities (11,000)
Lease liabilities (29,461)
Total non-current financial liabilities (290,409)

Borrowings and other financial liabilities

Borrowings (276,177)
Debt securities (195)
Lease liabilities

Financial Liabilities

Opera. liab. (excluding liab. to the state and employees) (5,723) (5,723)
Derivative financial instruments Interest rate swaps (767) (767)
Commodity derivative instruments (15,364) (109) (15,473)
Total current financial liabilities (15,364) (876) (684,265) (700,505)
Total financial liabilities (15,364) (876) (974,674) (990,914)

Presentation of financial assets and liabilities disclosed at fair value according to the fair value hierarchy

The Petrol Group

Fair value of assets

31 December 2024

31 December 2023

(in EUR thousand) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets at fair value through other comprehensive income - - 27,850 27,850 - - 3,994 3,994
Derivative financial instruments - 25,962 - 25,962 - 26,547 - 26,547
Total assets at fair value - 25,962 27,850 53,812 - - - -

Financial Overview

Non-current loans 26,547 3,994 30,541
Non-current loans - - 1,154 1,154
Current loans - - 1,081 1,081
- - 775 775
Non-current operating receivables - - 7,626 7,626
Current operating receivables (excluding rec. from the state) - - 673,684 673,684
- - 794,205 794,205

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Contract assets

5,281 5,281
6,052 6,052

Cash and cash equivalents

76,861 76,861
105,937 105,937

Total assets with fair value disclosure

76,861 688,826 765,687
105,937 811,862 917,799

Total assets

102,823 716,676 819,499
132,484 815,856 948,340

The fair value of financial assets at fair value through other comprehensive income has been estimated:

  • using the capitalised yield method, assuming a required pre-tax rate of return of 7.75 percent and 12.95 percent (2023: 9.9 and 13.4 percent) and a long-term growth rate of 2 percent and 6.17 percent (2023: 2 percent);
  • using the discounted cash flow method, assuming a required rate of return of 6.3 percent and a long-term growth rate of 2 percent;
  • using the summation method, assuming a required rate of return of 7.16 percent and a long-term growth rate of 2.1 percent.

A change (+g/-WACC) in the stated assumptions by 0.5 percentage points would result in an increase in the fair value by EUR 5,969 thousand (2023: EUR 601 thousand). A change (-g/+WACC) in the stated assumptions by 0.5 percentage points would result in a decrease in fair value by EUR 4,450 thousand (2023: EUR 447 thousand).

Fair value of liabilities

31 December 2024 31 December 2023
Level 1
Level 2 (21,516) (22,734)
Level 3
Total (21,516) (22,734)

Non-current borrowings and other financial liabilities

Financial Liabilities

Non-current lease liabilities (130,942)
Current borrowings and other financial liabilities (excluding liabilities at fair value) (99,496)
Current lease liabilities (20,556)
Non-current operating liabilities (excluding other liabilities)

Petrol d.d., Ljubljana

Fair value of assets

31 December 2024 31 December 2023
Current operating liab. (excluding liab. to the state, employees and liabilities at fair value) (543,101) (737,361)
Total liabilities with fair value disclosure (1,048,475) (1,308,929)
Total liabilities (1,069,991) (1,331,663)

Financial assets at fair value through other comprehensive income

(in EUR thousand) Level 1 Level 2 Level 3 Total
Financial assets at fair value through other comprehensive income - - 25,628 25,628
- - 2,118 2,118
Derivative financial instruments - 17,782 - 17,782
- 24,022 - 24,022
Total assets at fair value - 17,782 25,628 43,410
- 24,022 2,118 26,140

Non-current loans


Financial Overview

Current loans 22,334 22,334
Non-current operating receivables 46,828 46,828
Current operating receivables (excluding rec. from the state) 7,621 7,621
Contract assets 417,550 417,550

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

5

Cash and cash equivalents 30,555 30,555
Total assets with fair value disclosure 30,555 494,338 524,893
Total assets 48,337 519,966 568,303

The fair value of financial assets at fair value through other comprehensive income has been estimated:

- using the capitalised yield method, assuming a required pre-tax rate of return of 12.95 percent (2023: 13.4 percent) and a long-term growth rate of 6.17 percent (2023: 2.0 percent)

percent);

− using the discounted cash flow method, assuming a required rate of return of 6.3 percent (2023: 7.45 percent) and a long-term growth rate of 2 percent (2023: 2 percent);

− using the summation method, assuming a required rate of return of 7.16 percent and a long-term growth rate of 2.1 percent.

A change (+g/-WACC) in the stated assumptions by 0.5 percentage points would result in an increase in the fair value by EUR 5,890 thousand (2023: EUR 393 thousand). A change (-g/+WACC) in the stated assumptions by 0.5 percentage points would result in a decrease in fair value by EUR 3,988 thousand (2023: EUR 288 thousand).

Fair value of liabilities

31 December 2024 31 December 2023
Level 1
Level 2 (16,240) (2,071)
Level 3
Total (16,240) (2,071)

Non-current borrowings and other financial liabilities

-

-

(260,948)

Non-current lease liabilities (29,461) (29,461)
(27,579) (27,579)
Current borrowings and other financial liabilities (excluding liabilities at fair value) (276,372) (276,372)
(222,051) (222,051)
Current lease liabilities (5,723) (5,723)
(4,318) (4,318)
Non-current operating liabilities (excluding other liabilities)

Current operating liabilities

Current operating liab. (excluding liab. to the state, employees and liabilities at fair value)
(402,170) (402,170)
(588,537) (588,537)
Total liabilities with fair value disclosure (974,674) (974,674)
(1,143,191) (1,143,191)
Total liabilities (16,240) (974,674) (990,914)
(2,071) (1,143,191) (1,145,262)

Changes in Level 3 assets measured at fair value

The Petrol Group

Petrol d.d.


Financial Overview

(in EUR thousand) 2024 2023 2024 2023
As at 1 January 3,994 4,446 2,118 2,118
Transfer from investments in associates 24,541 - 11,252 -
Valuation of the remaining interest at fair value (1,399) - 11,544 -
Disposals - (452) - -
Decrease (24) - (24) -
Revaluation 846 - 846 -
Elimination of impairment 83 - 83 -

6.8 Environmental and climate risks

Environmental and climate risks form part of the comprehensive risk management system in the Petrol Group, which ensures that the key risks to which the Company or Group is exposed are appropriately identified, assessed and effectively managed.

Environmental risk assessment covers the following areas: pollution, water and marine resources, biodiversity and ecosystems, and the circular economy. Climate risks include a comprehensive overview of current and future risks related to the physical and transient impacts of climate change that may affect the Group's operations, supply chains and infrastructure.

From the perspective of financial consequences, an environmental and climate risk is significant if it causes or can reasonably be expected to cause material financial effects on the Petrol Group. This applies when environmental and climate issues create or may create risks that materially affect or are reasonably expected to materially affect the development of the Petrol Group, its financial position, financial performance, cash flows, access to financing or cost of capital in the short, medium or long term.

The assessment of environmental and climate risks was carried out in 2024 as part of the dual relevance assessment (sustainability statement, IRO). The financial consequences of all environmental and climate issues where the Group's activities have certain impacts on the environment and climate, which could have financial consequences for the Petrol Group, were assessed:

  • climate change adaptation;
  • climate change mitigation;
  • energy (renewable and non-renewable energy sources);
  • water, soil, air pollution;
  • light pollution;
  • water consumption;
  • direct drivers of biodiversity and ecosystem loss;
  • resource inflows;
  • waste management.

The assessments have shown that the impacts in all environmental and climate areas are managed to the extent that none of them have or will potentially have material financial consequences for the Petrol Group (the specified threshold is 25 million euros).

The Petrol Group's resilience to all types of physical climate risks was assessed. This resilience is high, as the Group adequately manages the moderate risks to which it is exposed through planned actions and implements adjustments. Proper collateral and financial preparedness allow it to reduce long-term financial consequences. Material changes to the business model to adapt to physical climate risks are not required in any time frame (short, medium and long term).

The transition to a less carbon-intensive economy brings a series of political, legal, technological, market and other risks. The Petrol Group has no so-called high or critical risks pertaining to transient climate risks. Most risks are assessed as moderate (for further details, refer to the sustainability statement, sector E1). The Petrol Group actively manages all identified risks. The Petrol Group's environmental and climate resilience is not assessed as low in any area.

7. Related party transactions

Petrol d.d., Ljubljana is a joint-stock company listed on the Ljubljana Stock Exchange. The ownership structure as at 31 December 2024 is disclosed in the Chapters Share and

Ownership Structure and Companies in the Petrol Group

All of the Group/Company-related party transactions were carried out based on the market conditions applicable to transactions with unrelated parties.

Companies in the Petrol Group

The Petrol Group

Company 2024 (in EUR thousand) 2023 (in EUR thousand) 2024 (in EUR thousand) 2023 (in EUR thousand)
Revenues from contracts with customers: Subsidiaries - - 888,087 920,023
Jointly controlled entities 333 1,077 24 18
Associates 17 58 17 58
Cost of goods sold: Subsidiaries - - 111,768 175,512
Jointly controlled entities 123 71 - -
Costs of materials: Subsidiaries - - - -

Jointly controlled entities

Costs of services: Subsidiaries 1,893 2,167
Jointly controlled entities 5
Other costs: Subsidiaries 177
Impairment of investments/goodwill: Subsidiaries 1,733 3,639
Reversal of impairment on financial and contract assets: Subsidiaries 656
Gain on derivatives: Subsidiaries

5,993 8,459
Loss on derivatives: Subsidiaries - - 3,860 7,938
Fin. inc./expenses from interests in Group companies: Subsidiaries - - 42,360 1,589
Jointly controlled entities 36 44 44 931
Associates 1,543 3,680 1,775 1,247
Finance income from interest: Subsidiaries - - 1,557 1,767
Jointly controlled entities - 10 - 10
Other financial income: Subsidiaries - - 226

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Finance expenses for interest:

Subsidiaries - - 5,022 3,558

The Petrol Group

Petrol d.d.

31 December

31 December

31 December

31 December

(in EUR thousand) 2024 2023 2024 2023
Investments in Group companies: Subsidiaries - - 595,955 555,292
Jointly controlled entities 342 350 233 233
Associates 1,864 59,317 337 26,610
Non-current loans: Subsidiaries - -

Current operating receivables:

Subsidiaries - - 47,841 43,764
Jointly controlled entities 528 1 10 1
Associates - 1 - 1
Assets from derivative financial instruments Subsidiaries - - 153

Current loans:

Subsidiaries - - 45,899 37,948
Jointly controlled entities 916 451 916 451

Prepayments and other assets:

Subsidiaries - - 213

Non-current borrowings:

Subsidiaries - - 21,000 21,000

Non-current lease liabilities:

Subsidiaries - - 2,396 1,978

Current borrowings:

Subsidiaries - - 229,763 154,797
Jointly controlled entities - 300 - 300

Current lease liabilities:

Subsidiaries - - 1,237 883

Current operating liabilities:

Subsidiaries - - 18,245 29,051
Jointly controlled entities - 1 -

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Current deferred income:

Subsidiaries

113

Contract liabilities:

Subsidiaries

2 2

Liabilities from derivative financial instruments

Subsidiaries

61

Other liabilities:

Subsidiaries

1,166 3,830

Remuneration of the members of the Supervisory Board and committees of Petrol d.d., Ljubljana

In 2024

SB and Committee (in EUR) Basic payment attendance fees (3) Remuneration SB Travel

Current Page

Name and surname Function SB tasks Committees Sum total
Janez Žlak President of the Supervisory Board 22,500 11,250 43,857
Borut Vrviščar Deputy President of the Supervisory Board 16,500 8,250 35,325
Aleksander Zupančič Member of the Supervisory Board 15,000 7,500

Alenka Urnaut Member of the Supervisory Board 15,000 7,500 5,625 3,685 1,881 - 33,691
Mario Selecky Member of the Supervisory Board 15,000 7,500 3,750 3,410 1,540 - 31,200
Mladen Kaliterna Member of the Supervisory Board 15,000 7,500 3,750 3,685 1,881 - 31,816
Alen Mihelčič Member of the Supervisory Board 15,000 7,500

Supervisory Board Members

Robert Ravnikar Member of the Supervisory Board 15,000 7,500 3,750 3,685 1,540 - 31,475
Marko Šavli Member of the Supervisory Board 15,000 7,500 3,750 3,685 1,881 - 31,816
Sabina Merhar External member of the Audit Committee - - 4,500 - 1,606 - 6,106

Total:

144,000 72,000 42,000

First and last name, function (1) (2) (3) (4) (5) (6) (7) (8)
Variable remuneration 32,615 16,830 2,430 309,876 - * Travel expenses are not remuneration by nature, but are intended to reimburse incurred costs in the performance of duties, which is claimed by members of supervisory boards for income tax purposes. Total Fixed Based on monetary remuneration
Special remuneration Based on quantitative criteria
Maluses (return from any Group pay) Based on qualitative criteria
Severance remuneration

Benefits

Clawback remuneration

Company Sašo Berger, President of the Management Board Marko Ninčević, Member of the Management Board Jože Smolič, Member of the Management Board Nada Drobne Popović, President of the Management
Amount 54,654 64,186 228,423
- - - 87,663
- - - 70,118
- 56 77 -
1,306 1,516 29,913 11,380
- - - -
56,016 65,779 427,497
34,031

269,021 103,133 82,492 - 37,500 9,590 - - 501,736 -
Board Jože Bajuk, Member of the Management Board 145,248 146,696 117,335 - 16,153 10,339 - - 435,771 25,432
Matija Bitenc, Member of the Management Board 228,518 87,663 70,118 - 30,995 10,388 - - 427,682 43,200
Zoran Gračner, Worker Director 136,682 28,463 22,767 - 5,585 4,706

Total
Fixed remuneration: base salary 1,126,732
Variable remuneration 453,618
Special monetary remuneration 362,830
Maluses (return payment) 120,279
Severance remuneration 49,225
2,112,684
102,663
  • Fixed remuneration: base salary

** Special monetary remuneration: pay for annual leave, jubilee awards, reimbursement of expenses (meals, transportation, travel orders), bonus for business performance, part of the salary for work performance

In 2024

(2) (5) (8)
(1) Based on quantitative Based on qualitative

Current Page

First and last name, function pay Benefits Clawback remuneration
Sašo Berger, President of the Management Board 300,000 - - -
25,149 13,985 - -
339,134 - - -
Marko Ninčević, Member of the Management Board 255,000 - - -
22,134 15,380 - -
292,514 - - -
Jože Smolič, Member of the Management Board 255,073 - - -

Metod Podkrižnik, Member of the Management Board 28,889 12,552 - - 296,514 37,125
Drago Kavšek, Member of the Management Board 233,750 - - - 32,552 12,501
Nada Drobne Popović, President of the Management Board till 22 November 2023 278,803 - - - 29,348 -
- 150,000 7,491 - - - -
- 27,065 5,110 - - 223,425 -

Remuneration Report

Matija Bitenc, Member of the Management Board till 7 December 2023 186,839 -
24,946 -
5,274 432
- 30,652
Zoran Gračner, Worker Director 167,166 -
- 5,018
32,113 -
204,297 -
Total 1,456,533 -
150,000 153,572
92,073 -
1,852,178 37,125
  • Fixed remuneration: base salary

** Special monetary remuneration: pay for annual leave, jubilee awards, reimbursement of expenses (meals, transportation, travel orders), bonus for business performance, part of the salary for work performance

Based on the adopted Remuneration Policy for the management bodies, the Company discloses the paid remuneration in the annual report for the calendar year. The variable part of the payment to the members of the management board for the performance of the Petrol Group in the business year 2023 and the rewarding of the management board members for the achieved results in 2023 by the supervisory board of the company has not yet been disclosed.

considered and therefore has not been paid in 2024. The same applies to the variable part for the year 2024.

The total amount of remuneration paid to the members of the works council in 2024 in the Company amounts to 14 thousand EUR. As of December 31, 2024, the Company and the Group have no receivables or liabilities towards the members of the supervisory board. As of December 31, 2024, the Company and the Group have no receivables or liabilities towards the members of the management board, except for the liabilities for December salaries, which were paid in January 2025.

8. Contingent liabilities

Contingent liabilities for guarantees issued

The maximum contingent liabilities of Petrol d.d., Ljubljana for guarantees issued stood at EUR 413,807 thousand as at 31 December 2024 (31 December 2023: EUR 425,145 thousand) and were as follows:

Petrol d.d. 31 December 2024 31 December 2023 31 December 2024 31 December 2023
Guarantee issued to: Value of guarantee issued Guarantee amount used
Petrol d.o.o. 213,239 196,539 74,841 124,951
Geoplin d.o.o. Ljubljana 126,755 166,227 5,234 51,339
Vjetroelektrane Glunča d.o.o. 20,000 20,000 17,143 20,000
E 3, d.o.o.

Petrol d.o.o. Beograd 15,000 15,000 3,079 8,184
Petrol BH Oil Company d.o.o. Sarajevo 9,652 4,332 1,852 678
Petrol Trade Handelsgesellschaft m.b.H. 6,793 6,844 1,319 1,153
Petrol Crna Gora MNE d.o.o. 4,000 3,000 4,000 3,000
Petrol LPG HIB d.o.o 1,200 1,050 214 221
Petrol Pay d.o.o. 1,012 1,012 128 -
Petrol LPG d.o.o. 694 - - -
Total 4,700 - - -

9. Events after the reporting date

There were no events after the reporting date that would significantly affect the presented financial statements for 2024.

10. Financial statements of Petrol d.d., Ljubljana by activity in accordance with the Electricity Supply Act, the Gas Supply Act and the Heat Supply from Distribution Systems Act

10.1 Introduction

The energy part comprises an overview of the financial statements that the Company is obliged to disclose in accordance with the Electricity Supply Act (Official Gazette of the RS No. 172/2021), the Gas Supply Act (Official Gazette of the RS Nos. 204/2021 and 121/2022) and the Heat Supply from Distribution Systems Act (Official Gazette of the RS No. 44/2022), which stipulate that undertakings performing energy activities pertaining to electricity or natural gas or heat supply have to compile, audit and publish annual financial statements in the manner prescribed by law for companies, irrespective of their legal form and ownership.

In accordance with Article 66 of the Services of General Economic Interest Act (Official Gazette of the RS, Nos. 32/93 and 30/98), the Company has to separately monitor all accounting records that enable the calculation of costs, expenses and revenue according to the principles applicable to companies.

Supply from Distribution Systems Act, the annual report shall also include the rules and criteria based on which assets, liabilities, revenue and expenses are allocated to individual energy activities.

10.2 Accounting policies for separating financial statements

In separating the financial statements, the principles of prudence and accuracy were taken into account. The Company maintains separate accounting records for each activity, thus enabling the close monitoring of all forms of revenue and expenses. At the same time, the Company discloses in its books fixed assets separately for individual activities.

The Company compiles separate financial statements in the electricity segment for the following activities:

  • electricity generation – energy activity, market activity;
  • distribution of electricity (closed distribution system) – energy activity, regulated activity, acquired status of a closed distribution system in the Ravne ironworks and Štore ironworks areas;
  • supply of electricity – energy activity, market activity.

The Company compiles separate financial statements in the natural gas segment for the following activities:

  • natural gas distribution (distribution system operator) – energy activity, regulated activity, optional service of general economic interest;
  • natural gas distribution (closed distribution system) – energy activity, regulated activity, acquired the status of a closed distribution system in the Štore ironworks area;
  • supply of natural gas – energy activity, market activity.

The Company compiles separate financial statements in the heat segment for the following activities:

  • heat generation – energy activity, regulated activity;
  • distribution and supply of heat – energy activity, regulated activity, optional service of general economic interest.

The Company also compiles separate financial statements in the municipal and wastewater treatment segment. Among other activities, the Company discloses all other marketing activities.

Within the Company, two areas are organised in the energy segment – the area of Energy and Environmental Systems and the area of Energy Commodity and Electricity Management, where the listed energy activities are carried out. The areas are organised separately, each area having its own executive director and its own specifics of organisation.

The Company carries revenues and expenses in orders, cost centres and profit centres. Assets and liabilities are carried under profit centres. Intangible non-current assets, property, plant and equipment and investment property that have already been activated are carried under tasks or cost centres.

Within an individual energy activity, the Company has open profit centres up to the level of an individual local community or individual energy system, allowing the recognition of revenues and expenses directly for individual activities to the greatest possible extent. Each activity has a profit centre – general, where the total income and expenses for each individual activity are recorded. The sum of all the income at the profit centres represents the direct revenues of an individual activity, and the sum of all costs represents the direct costs of an individual activity.

Criterion 1:

Direct costs by activity, together with the direct costs at the profit centre – general, are the basis for the division of indirect income and indirect costs and expenses.

The Energy and Environmental Systems organisational unit supports Energy and Environmental Systems, where the general costs belonging to the entire area are carried. Within this area, energy activities are performed by the Company: the electricity generation, the distribution of electricity – closed distribution system, the natural gas distribution (as an open and closed distribution system), heat generation and distribution. In addition to these activities, the activity of municipal and wastewater treatment is performed. Other energy marketing activities are also performed, which are presented by the Company in separate financial statements among other activities.

Criterion 2:

Direct costs by individual activity, together with the direct costs at the profit centre – general, represent the sum of individual activities performed in Energy and Environmental Systems and are the basis for the division of indirect costs and expenses carried under support for Energy and Environmental Systems – 1st coverage for Energy and Environmental Systems.

The Energy Product and Electricity Management organisational unit supports Energy Commodity and Electricity Management – general, where the general costs belonging to the entire area are recorded. Within this area, energy activities are performed: the supply of electricity and of natural gas. Other energy marketing activities are also performed, which are presented by the Company in separate financial statements among other activities.

Criterion 3:

Direct costs by individual activity, together with the direct costs at the profit centre – general, represent the sum of individual activities performed in the field of Energy Product and Electricity Management and are the basis for the division of indirect costs and expenses carried under support for Energy Commodity and Electricity Management – 1st coverage for Energy Commodity and Electricity Management.

The Company has organised support functions, which it defines as support functions for energy activities in the areas of Energy and Environmental Systems and Energy Commodity and Electricity Management:

- “Customer Support and Sales-Contact Centre”,

− “Back office”,

− “IT” and “Business intelligence”. They are recorded by individual cost centres and are first allocated to the Energy and Environmental Systems and Energy Commodity and Electricity Management organisational units (and further by individual activity) according to the applied criteria 4 and 5.

Criterion 4:

Support functions, which the Company defines as support functions for Energy and Environmental Systems and related costs – 2nd coverage for Energy and Environmental Systems are in total:

  • Customer support– PO – 95 percent of all costs;
  • Customer support– FO – 95 percent of all costs;
  • Back office – 95 percent of all costs;
  • IT – general – 15 percent of all costs;
  • Business Intelligence – 95 percent of all costs.

The sum of costs – 2nd coverage for Energy and Environmental Systems represent indirect costs from the 2nd coverage.

Direct costs by individual activity, together with the direct costs at the profit centre – general, represent the sum of individual activities performed in Energy and Environmental Systems and are the basis for the division of the indirect costs and expenses carried under the support functions of Energy and Environmental Systems – 2nd coverage for Energy and Environmental Systems.

Criterion 5:

Support functions, which the Company defines as support functions for Energy Product and Electricity Management and related costs – 2nd coverage for Energy Commodity and Electricity Management are in total:

  • Customer support– PO – 5 percent of all costs;
  • Customer support– FO – 5 percent of all costs;
  • Back office – 5 percent of all costs;
  • IT – general – 1 percent of all costs;
  • Business Intelligence – 5 percent of all costs.

The sum of costs – 2nd coverage for Energy Commodity and Electricity Management represent indirect costs from the 2nd coverage.

Direct costs by individual activity, together with the direct costs at the profit centre – general, represent the sum of individual activities performed in the field of Energy Product and Electricity Management and are the basis for the division of indirect costs and expenses carried under the support functions of Energy Commodity and Electricity Management – 2nd coverage for Energy Product and Electricity Management.

All costs that belong to other support functions in the Company as a whole or in shares that are organised in the Company are shown among other activities of the Company.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Criterion 6:

Financial expenses for interest on loans are calculated and attributed to individual activities. The basis for calculating interest is 50 percent of the average value of the non-current assets of an individual activity at the beginning and at the end of the year. The interest rate is calculated as the average annual interest rate applicable to the Company for non-current and current loans.

Criterion 7:

The statement of profit or loss was divided into the following steps:

  • Sales revenue includes revenue from the sale of goods, revenue from the sale of services, other sales revenue and internal revenue and is divided by individual activity directly by recorded revenue (profit centre).
  • The cost of goods sold represents the cost of energy commodities sold, goods sold and materials sold and is carried directly under each activity; the purchase value, which is carried under the cost centre that is defined as indirect, is distributed by individual activity according to criteria 1 to 5.
  • Costs of materials are all direct costs of materials that relate to an individual activity; each individual activity also accounts for a proportional share of the indirect costs of materials with criteria 1 to 5 applied.
  • Costs of services include all direct costs of services that relate to an individual activity; each individual activity also accounts for a proportionate share of the indirect costs of services with criteria 1 to 5 applied.
  • Labour costs are direct labour costs that relate to an individual activity; each individual activity also accounts for a proportionate share of indirect labour costs with criteria 1 to 5 applied.
  • The depreciation and amortisation charge is the direct depreciation charge that relates to an individual activity; each individual activity also accounts for a proportionate share of the indirect depreciation charge with criteria 1 to 5 applied.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Criterion 8:

The statement of financial position was divided into the following steps:

Non-current (long-term) assets

  • Intangible assets are carried directly under individual activities and the indirect part is recognised among other activities.
  • Right-of-use assets are carried directly under individual activities and the indirect part is recognised among other activities.
  • Items of property, plant and equipment are carried directly under individual activities and the indirect part is recognised among other activities.
  • Investment property is carried directly under individual activities and the indirect part is recognised among other activities.
  • Other non-current (long-term) assets are carried under other activities.

Current assets

  • Operating receivables are carried directly under individual activities.
  • Other current assets are carried under other activities.

Equity

  • The called-up capital and capital surplus were determined on 31 December 2015 as the difference between assets and liabilities at that time.
  • The net profit or loss for the year is calculated in the statement of profit or loss for the year for each activity.
  • Other equity items are carried under other activities.

Non-current liabilities

  • Provisions for employee post-employment and other non-current benefits are carried under other activities.
  • Other provisions are carried directly under individual activities.
  • Deferred income is carried directly under individual activities.
  • Financial liabilities that are not non-current financial liabilities from the calculated balance of non-current loans by individual activity are carried under separate financial statements under other activities of the Company.
  • Lease liabilities are carried directly under individual activities.
  • Operating liabilities are carried directly under individual activities.
  • Deferred tax liabilities are carried under other activities.

Current liabilities

  • Other financial liabilities, other than current financial liabilities from accrued interest on current loans are carried under the separate financial statements under other activities of the Company.
  • Lease liabilities are carried directly under individual activities.
  • Operating liabilities are carried directly under individual activities.
  • Corporate income tax liabilities are carried under other activities.
  • Contract liabilities are carried directly under individual activities.
  • Other liabilities are carried directly under individual activities.

Criterion 9:

Current and non-current financial liabilities from loans are calculated and attributed to an individual activity. The basis for calculating the balance of loans is 50 percent of the average value of the non-current assets of an individual activity at the beginning and at the end of the year. Of this calculated value of loans, 80 percent of the value is carried among non-current financial liabilities and 20 percent of the value among current financial liabilities.

Criterion 10:

The sum of all items of “Non-current (long-term) assets” and “Current assets” represents “Total assets”.

The sum of “Equity”, “Non-current liabilities” and “Current liabilities” represents the “Total liabilities”. If the value of “Assets” is determined as lower than “Liabilities”, the calculated difference is carried under other receivables by individual activity. If the value of “Assets” is determined as higher than “Liabilities”, the calculated difference is carried under other operating liabilities by individual activity.

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

10.3 Presentation of the financial statements by activity of Petrol d.d., Ljubljana

10.3-1 Statement of profit or loss by activity for 2024

Activity Revenue from contracts with customers Cost of goods sold Costs of materials Costs of services Labour costs
Natural gas distribution system operator 10,122 - (2,394) (1,362) (1,555)
Natural gas supply 38,180 (36,658) (1) (275)
Closed natural gas distribution system 545 - (346) (99)
Heat generation 6,441 - (4,854) (875)
Heat distribution 2,507 - (615) (459)
Electricity Production 4,841 - (2,693) (384)
Electricity supply 549,881 (541,281) (10) (1,285)
Closed electricity distribution system 4,746 - (2,256) (220)
Municipal wastewater and run-off rainwater treatment 3,478 (3) (762) (700)
Other activities 3,780,841 (3,396,849) (30,039) (137,104)
Total 4,401,582 (3,974,791) (43,970) (142,763)

Financial Summary

Depreciation and amortisation (2,876) (12) (31) (666) (673) (479) (44) (736) (577) (42,027) (48,121)
Other costs (661) (88) (1) (382) (43) (528) (4,288) (77) (10) (10,495) (16,573)
Gain on derivatives - - - - - - 8,011 - 135,597 143,608
Loss on derivatives - - - - - - (8,511) - (109,258) (117,769)
Other income 79 2 - 51 28 15 402 2 5 33,977 34,561
Other expenses - - - - - - - - (55) (55)
Operating profit or loss 1,353 679

(13) (1,875) (520) 384 1,523 386 543 116,423 118,883
Income from dividends paid by subsidiaries, associates and jointly controlled entities - - - - - - - 44,179 44,179
Finance income - - - - - - - 64,086 64,086
Finance expenses (521) - (4) (70) (116) (41) (1) (162) (49) (72,738) (73,702)
Net finance expenses (521) - (4) (70) (116) (41) (1) (162) (49) (8,652) (9,616)
Profit/(loss) before tax 832 679 (17) (1,945) (636) 343 1,522 224 494 151,950 153,446
Income tax expense (183) (149) 4 428 140 (76) (335) (49) (109) (22,605) (22,934)
Net profit/(loss) for the year 649

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

10.3-2 Statement of financial position by activity as at 31 December 2024

Activity ASSETS
Non-current assets Current assets
Natural gas distribution system operator 33,945 2
Natural gas supply - 1,659
Closed natural gas distribution system 4,863 499
Heat generation 51 2
Heat distribution 3,169 140,365
Electricity Production 184,555 -
Electricity supply 467 50
Closed electricity distribution system 260 3,867
Municipal wastewater and run-off rainwater treatment 3,735 1,967
Other activities 43 10,775
Total 166 343,738

Investments

Investments in jointly controlled entities 595,955
Investments in associates 233
Financial assets at fair value through other comprehensive income 337
Loans 25,628
Operating receivables 22,334
Deferred tax assets 7,621
11,062
34,412
52
260
5,526
8,598

Current Assets

Inventories - - - - - - - - 148,122 148,122
Contract assets - - - - - - - - 5 5
Loans - - - - - - - - 46,828 46,828
Operating receivables 33,695 13,011 244 4,952 1,820 179 88,732 19,162 309 255,463
417,567
Corporate income tax assets - - - - - - - - - -
Derivative financial instruments - - - - - - - - 17,782 17,782
Prepayments and other assets - - - - - - - - - -

Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2024 – Financial Report

Financial Overview

Cash and cash equivalents 47,765 47,765
Total assets 1,706,549 1,934,173

Public (in EUR thousand)

Natural gas distribution system operator 30,555
Natural gas supply 33,695
Closed natural gas distribution system 13,011
Heat generation 244
Heat distribution 4,952
Electricity Production 1,820
Electricity supply 179
Closed electricity distribution system 88,732
Municipal wastewater and run-off rainwater treatment 19,162
Other activities 309
Total 546,520

EQUITY AND LIABILITIES

Equity attributable to owners of the controlling company 68,107
Called-up capital 16,544
Other 2,569
Adjustment (2)
Other 4,079
Other 1,396
Adjustment (2,659)
Other 5,795
Other 4,509
Other -
Total 20,010

Financial Summary

Capital surplus 52,241
Legal reserves 16,544
Reserves for own shares 4,708
Own shares (2,605)
Other profit reserves 353,699
Fair value reserve 43,424
Hedging reserve 11,391

Retained earnings

649 530 (13) (1,517) (496) 267 1,187 175 385 64,029 65,196

Total equity

33,737 5,668 (17) 6,641 2,296 (5,051) 12,777 9,193 385 605,166 670,795

Non-current liabilities

Provisions for employee post-employment and other non-current benefits

- - - - - - - - - 6,396 6,396

Other provisions

- - - - - 170 - - - 39,989 40,159

Deferred income

- - - 443 421 - - - - 29,182 30,046

Borrowings and other financial liabilities

14,267 11 109 2,070 3,337 1,116 29 4,436 1,334 234,239 260,948

Lease liabilities

67 - - 10 - - 26 - 29 29,329

Current Liabilities

Operating liabilities 29,461
Other provisions 3,742
Deferred income 11,866
Borrowings and other financial liabilities 276,372
Lease liabilities 5,723
Total Current Liabilities 504,620

Derivative financial instruments

16,240 16,240
Corporate income tax liabilities 1,732 1,732
Contract liabilities 24 42 30 16,131 16,227
Other liabilities 511 459 6,544 4 51,886 59,404
19,594 7,383 412 1,314 4,364 6,410 75,994 16,310 1,897 762,248
895,926 Total liabilities
34,370 7,394 521 3,837 8,122 7,696 76,049 20,746 3,260 1,101,383 1,263,378
Total equity and liabilities 68,107 13,063 504 10,478 10,418 2,645 88,826 29,939 3,644 1,706,549 1,934,173

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