Photon Energy N.V.

Quarterly Report • Feb 17, 2023

Photon Energy N.V.

Monthly Report for January 2023

For the period from 1 to 31 January 2023

1. Information on the Occurrence of Trends and Events in the Market Environment of the Issuer, which in the Issuer's Opinion may have Important Consequences in the Future for the Financial Condition and Results of the Issuer

1.1 Production Results of Photon Energy's Power Plants in the Reporting Period

The Company reports 5.3 GWh of electricity produced in January 2023 compared to 6.3 GWh one year ago (-15.7%) due to unfavourable weather conditions. This represents an avoidance of 2,719 tonnes of CO2 emissions for the month.

In January, the electricity generated by our proprietary portfolio were short of estimates by -12.9%.

For more information, please refer to chapter 2. Proprietary PV power plants.

1.2 Photon Energy meets its guidance for 2022 an announces 2023 financial guidance

After the reporting period, at the occasion of the release of its Q4 and preliminary results for 2022, the Company announced that it has met its guidance for 2022 to increase its consolidated revenues to EUR 85 million from EUR 36.4 million in 2021, and to increase its EBITDA to EUR 24 million from EUR 9.6 million in 2021.

In keeping with its strategy, the Company will continue actively investing in new PV power plants on the back of its proprietary project pipeline, currently totalling 91.8 MWp, including the 32 MWp built and up to be commissioned in Romania.

Increases in other revenue streams are also anticipated thanks to the great momentum in the Group's EPC revenues and the significant interest in 'behind-the-meter' PV installations for industrial customers and off-takers. The Group's PV component trading business, which distributes modules, inverters and batteries is also expected to enjoy very dynamic growth in 2023.

DSR services will become a key revenue driver for the Group as Lerta has secured DSR capacities and expands to new markets (see also 1.3 below), meeting exploding global demand for grid flexibility, with Australia as the next target.

Based on the above and the Group's operating leverage manifesting across all its business lines, consolidated revenues for 2023 are expected to increase to EUR 150.0 million from EUR 94.2 million in 2022, representing a 59.2% increase YoY, leading to an increase of EBITDA to EUR 29.0 million from EUR 24.1 million in 2022 (+20.5% YoY).

1.3 Photon Energy completed full takeover of Lerta

With reference to the investment agreement signed on 20 December 2022 with the founders of Lerta S.A., Photon Energy N.V. has become holder of 100% of the share capital of the company on 1 February 2023.

Lerta is a Poland-based VPP (Virtual Power Plant) company which aggregates and manages distributed energy resources. Its proprietary AI software platform allows Lerta to forecast and optimise the output of renewable power plants and the load of industrial clients based on current prices and grid needs. This results in demand and supply flexibility which is offered to grid operators under different programs and services. In addition, Lerta provides a variety of energy-related services to consumers, such as behind-the-meter PV installations, energy management systems and PPAs. Lerta maintains energy trading licenses in Poland, Hungary, Romania, the Czech Republic, Slovakia and Serbia. Lerta manages a total capacity of almost 300 MWp, aggregated from more than 300 units across four countries. Of this, 150 MWp represents contracted DSR capacity in Poland, making Lerta the third largest aggregator in the country. In 2022, Lerta generated revenues of EUR 23 million.

The integration of Lerta into Photon Energy Group provides the Group with energy trading licenses in six countries, a cutting-edge scalable VPP platform and the number 3 position in the Polish DSR market with 134 MW capacity secured for 2023.

The acquisition of Lerta now expands the Group's team by some 100 members, raising the headcount to nearly 300, nearly one third of which will be based in Poland. Lerta adds two new locations to the Group's footprint in Poland, with offices now in Warsaw, Poznań, Łódź and Gdańsk.

1.4 Photon Water delivers a precipitation plant to the Jordán reservoir in the Czech Republic

Photon Water, the Company's business line specializing in clean water solutions, has delivered a precipitation plant to the Jordán reservoir, a key landmark of the historical city of Tábor, Czech Republic. The reservoir, built in 1492, is the oldest dam in the country and a remarkable feat of engineering from the Middle Ages. The city has recently undergone extensive efforts to revitalize the reservoir, including addressing water quality concerns. One of the key challenges facing the Jordan reservoir is the growth of cyanobacteria, which is fuelled by the presence of nutrients such as phosphorus and nitrogen. To address this issue, Photon Water's precipitation plant will reduce the amount of phosphorus and other harmful substances in the water.

The plant is expected to become fully operational by March 2023.

The nutrient precipitation is part of Photon Water's lake management services based on environmentally friendly methodology using five basic processes: aeration, bacteria use, artificial vegetation islands, ultrasound, and nutrient precipitation. These methods are safe for the aquatic ecosystem and effectively eliminate cyanobacteria and algae, keeping problematic bodies of water healthy and clean.

1.5 Reporting on Photon Energy's Project Pipeline

Photon Energy is currently developing PV projects in Australia (309.8 MWp), Hungary (78.1 MWp), Romania (227.3 MWp) and Poland (303.0 MWp) and is evaluating further markets for opportunities. For detailed information, please refer to chapter 3 "Reporting on Photon Energy's project pipeline".

2. Proprietary PV Power Plants

The table below represents power plants owned directly or indirectly by Photon Energy N.V. as of the date of the report.

Table 1. Production Results in January 2023

Project name	Capacity	Revenue1	Prod. 2023 January	Proj. 2023 January	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in January	kWh	kWh	%	kWh	kWh	%	%
Komorovice	2,354	674 EUR	53,037	51,395	3.2%	53,037	51,395	3.2%	5.3%
Zvíkov I	2,031	674 EUR	47,824	66,414	-28.0%	47,824	66,414	-28.0%	-31.1%
Dolní Dvořiště	1,645	673 EUR	30,804	42,447	-27.4%	30,804	42,447	-27.4%	-31.6%
Svatoslav	1,231	674 EUR	26,944	28,798	-6.4%	26,944	28,798	-6.4%	-12.8%
Slavkov	1,159	674 EUR	27,587	34,796	-20.7%	27,587	34,796	-20.7%	-38.8%
Mostkovice SPV 1	210	628 EUR	5,479	5,829	-6.0%	5,479	5,829	-6.0%	-30.3%
Mostkovice SPV 3	926	777 EUR	20,431	21,977	-7.0%	20,431	21,977	-7.0%	-29.3%
Zdice I	1,499	674 EUR	41,614	45,357	-8.3%	41,614	45,357	-8.3%	-3.7%
Zdice II	1,499	674 EUR	41,132	46,404	-11.4%	41,132	46,404	-11.4%	-8.2%
Radvanice	2,305	674 EUR	53,413	57,413	-7.0%	53,413	57,413	-7.0%	-31.8%
Břeclav rooftop	137	632 EUR	3,313	4,610	-28.1%	3,313	4,610	-28.1%	-47.4%
Total Czech PP	14,996		351,578	405,439	-13.3%	351,578	405,439	-13.3%	-21.9%
Babiná II	999	271 EUR	22,452	25,016	-10.3%	22,452	25,016	-10.3%	-38.6%
Babina III	999	271 EUR	7,599	25,700	-70.4%	7,599	25,700	-70.4%	-79.1%
Prša I.	999	270 EUR	20,038	29,168	-31.3%	20,038	29,168	-31.3%	-51.1%
Blatna	700	273 EUR	13,045	17,708	-26.3%	13,045	17,708	-26.3%	-41.8%
Mokra Luka 1	963	258 EUR	32,368	42,676	-24.2%	32,368	42,676	-24.2%	-49.6%
Mokra Luka 2	963	257 EUR	34,115	45,574	-25.1%	34,115	45,574	-25.1%	-50.4%
Jovice 1	979	263 EUR	17,727	22,434	-21.0%	17,727	22,434	-21.0%	-47.0%
Jovice 2	979	263 EUR	17,210	22,300	-22.8%	17,210	22,300	-22.8%	-47.2%
Brestovec	850	257 EUR	23,081	25,093	-8.0%	23,081	25,093	-8.0%	-37.8%
Polianka	999	261 EUR	18,900	19,986	-5.4%	18,900	19,986	-5.4%	-37.7%
Myjava	999	259 EUR	24,795	26,588	-6.7%	24,795	26,588	-6.7%	-42.2%
Total Slovak PP	10,429		231,331	302,244	-23.5%	231,331	302,244	-23.5%	-48.1%
Tiszakécske 1	689	159 EUR	26,084	29,493	-11.6%	26,084	29,493	-11.6%	-33.1%
Tiszakécske 2	689	159 EUR	26,741	29,493	-9.3%	26,741	29,493	-9.3%	-33.4%
Tiszakécske 3	689	161 EUR	22,694	29,493	-23.1%	22,694	29,493	-23.1%	-32.4%
Tiszakécske 4	689	159 EUR	27,164	29,493	-7.9%	27,164	29,493	-7.9%	-33.5%
Tiszakécske 5	689	159 EUR	26,262	29,493	-11.0%	26,262	29,493	-11.0%	-33.2%
Tiszakécske 6	689	159 EUR	26,450	29,493	-10.3%	26,450	29,493	-10.3%	-33.4%
Tiszakécske 7	689	159 EUR	26,651	29,493	-9.6%	26,651	29,493	-9.6%	-33.6%
Tiszakécske 8	689	160 EUR	25,689	29,493	-12.9%	25,689	29,493	-12.9%	-33.0%
Almásfüzitő 1	695	158 EUR	19,663	28,812	-31.8%	19,663	28,812	-31.8%	-35.1%
Almásfüzitő 2	695	158 EUR	18,940	27,986	-32.3%	18,940	27,986	-32.3%	-34.4%
Almásfüzitő 3	695	157 EUR	20,744	27,936	-25.7%	20,744	27,936	-25.7%	-36.5%
Almásfüzitő 4	695	158 EUR	19,564	28,847	-32.2%	19,564	28,847	-32.2%	-35.0%
Almásfüzitő 5	695	157 EUR	22,066	29,243	-24.5%	22,066	29,243	-24.5%	-36.8%
Almásfüzitő 6	660	157 EUR	21,095	29,078	-27.5%	21,095	29,078	-27.5%	-36.2%
Almásfüzitő 7	691	158 EUR	20,542	28,943	-29.0%	20,542	28,943	-29.0%	-35.5%
Almásfüzitő 8	668	158 EUR	19,750	28,475	-30.6%	19,750	28,475	-30.6%	-34.2%
Nagyecsed 1	689	168 EUR	21,207	27,737	-23.5%	21,207	27,737	-23.5%	-28.1%
Nagyecsed 2	689	167 EUR	21,792	27,737	-21.4%	21,792	27,737	-21.4%	-19.7%
Nagyecsed 3	689	168 EUR	21,882	27,412	-20.2%	21,882	27,412	-20.2%	-24.0%
Fertod I	528	164 EUR	16,877	21,345	-20.9%	16,877	21,345	-20.9%	-37.2%
Fertod II No 2	699	163 EUR	24,677	28,617	-13.8%	24,677	28,617	-13.8%	-40.0%
Fertod II No 3	699	163 EUR	24,674	28,488	-13.4%	24,674	28,488	-13.4%	-40.1%
Fertod II No 4	699	163 EUR	24,510	28,264	-13.3%	24,510	28,264	-13.3%	-40.3%

Project name	Capacity	Revenue	Prod. 2023 January	Proj. 2023 January	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in January	kWh	kWh	%	kWh	kWh	%	%
Fertod II No 5	691	163 EUR	24,288	27,977	-13.2%	24,288	27,977	-13.2%	-40.0%
Fertod II No 6	699	163 EUR	24,419	28,177	-13.3%	24,419	28,177	-13.3%	-40.0%
Kunszentmárton I No 1	697	160 EUR	30,513	30,589	-0.2%	30,513	30,589	-0.2%	-27.5%
Kunszentmárton I No 2	697	160 EUR	29,265	30,589	-4.3%	29,265	30,589	-4.3%	-24.8%
Kunszentmárton II No 1	693	161 EUR	30,337	29,486	2.9%	30,337	29,486	2.9%	-25.4%
Kunszentmárton II No 2	693	160 EUR	30,874	29,486	4.7%	30,874	29,486	4.7%	-22.7%
Taszár 1	701	153 EUR	30,716	26,646	15.3%	30,716	26,646	15.3%	-37.7%
Taszár 2	701	147 EUR	27,450	27,050	1.5%	27,450	27,050	1.5%	-44.7%
Taszár 3	701	153 EUR	30,609	27,124	12.9%	30,609	27,124	12.9%	-38.0%
Monor 1	688	157 EUR	23,956	29,313	-18.3%	23,956	29,313	-18.3%	-42.7%
Monor 2	696	157 EUR	22,600	28,994	-22.1%	22,600	28,994	-22.1%	-41.1%
Monor 3	696	157 EUR	23,602	29,334	-19.5%	23,602	29,334	-19.5%	-42.6%
Monor 4	696	157 EUR	23,407	29,308	-20.1%	23,407	29,308	-20.1%	-42.6%
Monor 5	688	157 EUR	23,908	28,169	-15.1%	23,908	28,169	-15.1%	-42.9%
Monor 6	696	157 EUR	23,870	29,275	-18.5%	23,870	29,275	-18.5%	-42.8%
Monor 7	696	157 EUR	23,631	29,233	-19.2%	23,631	29,233	-19.2%	-41.9%
Monor 8	696	157 EUR	23,910	29,459	-18.8%	23,910	29,459	-18.8%	-43.1%
Tata 1	672	158 EUR	19,017	32,094	-40.7%	19,017	32,094	-40.7%	-36.7%
Tata 2	676	157 EUR	20,563	32,212	-36.2%	20,563	32,212	-36.2%	-36.6%
Tata 3	667	157 EUR	20,959	32,212	-34.9%	20,959	32,212	-34.9%	-35.5%
Tata 4	672	158 EUR	19,582	32,656	-40.0%	19,582	32,656	-40.0%	-35.7%
Tata 5	672	158 EUR	19,398	32,212	-39.8%	19,398	32,212	-39.8%	-37.0%
Tata 6	672	158 EUR	19,113	31,399	-39.1%	19,113	31,399	-39.1%	-36.6%
Tata 7	672	158 EUR	19,127	32,212	-40.6%	19,127	32,212	-40.6%	-36.4%
Tata 8	672	158 EUR	19,716	32,697	-39.7%	19,716	32,697	-39.7%	-36.8%
Malyi 1	695	176 EUR	19,270	25,564	-24.6%	19,270	25,564	-24.6%	-48.0%
Malyi 2	695	176 EUR	19,579	25,667	-23.7%	19,579	25,667	-23.7%	-48.7%
Malyi 3	695	176 EUR	19,721	25,667	-23.2%	19,721	25,667	-23.2%	-48.6%
Puspokladány 1	1,406	102 EUR	36,007	69,280	-48.0%	36,007	69,280	-48.0%	-45.8%
Puspokladány 2	1,420	166 EUR	47,126	71,661	-34.2%	47,126	71,661	-34.2%	-31.2%
Puspokladány 3	1,420	166 EUR	46,815	70,386	-33.5%	46,815	70,386	-33.5%	-28.1%
Puspokladány 4	1,406	165 EUR	39,041	68,588	-43.1%	39,041	68,588	-43.1%	-41.9%
Puspokladány 5	1,420	166 EUR	48,634	70,500	-31.0%	48,634	70,500	-31.0%	-28.5%
Puspokladány 6	1,394	102 EUR	45,021	68,213	-34.0%	45,021	68,213	-34.0%	-30.4%
Puspokladány 7	1,406	102 EUR	46,696	70,066	-33.4%	46,696	70,066	-33.4%	-30.5%
Puspokladány 8	1,420	166 EUR	46,736	70,573	-33.8%	46,736	70,573	-33.8%	-27.6%
Puspokladány 9	1,406	102 EUR	46,981	70,169	-33.0%	46,981	70,169	-33.0%	-30.2%
Puspokladány 10	1,420	166 EUR	46,809	70,470	-33.6%	46,809	70,470	-33.6%	-27.5%
Tolna 1	1,358	153 EUR	51,477	72,001	-28.5%	51,477	72,001	-28.5%	-22.2%
Tolna 2	1,358	153 EUR	51,161	73,214	-30.1%	51,161	73,214	-30.1%	na
Total Hungarian PP	51,814		1,741,622	2,324,783	-25.1%	1,741,622	2,324,783	-25.1%	-33.2%
Symonston	144	228 EUR	18,500	18,087	2.3%	18,500	18,087	2.3%	5.1%
Leeton	7,261	61 EUR	1,620,000	1,548,226	4.6%	1,620,000	1,548,226	4.6%	14.6%
Fivebough	7,261	67 EUR	1,383,000	1,538,231	-10.1%	1,383,000	1,538,231	-10.1%	-1.8%
Total Australian PP	14,744		3,021,500	3,104,543	-2.7%	3,021,500	3,104,543	-2.7%	6.4%
Total	91,905		5,346,031	6,137,009	-12.9%	5,346,031	6,137,009	-12.9%	-15.7%

Notes:

Capacity: installed capacity of the power plant

Prod.: production in the reporting month - Proj.: projection in the reporting month

Perf.: performance of the power plant in reporting month i.e. (production in Month / projection for Month) - 1.

YTD Prod.: accumulated production year-to-date i.e. from January until the end of the reporting month.

YTD Proj.: accumulated projection year-to-date i.e. from January until the end of the reporting month.

Perf. YTD: performance of the power plant year-to-date i.e. (YTD prod. in 2023 / YTD proj. in 2023) – 1.

YTD YOY: (YTD Prod. in 2023 / YTD Prod. in 2022) – 1.

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

- Realized electricity price in Hungary.

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

0 200 400 600 800 1,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cumulative production in MWh January

Chart 1.a Total Production of the Czech Portfolio Chart 1.b Total Production of the Slovak Portfolio

The Company reports 5.3 GWh of electricity produced in January 2023 compared to 6.3 GWh one year ago (-15.7%) due to unfavourable weather conditions. This represents an avoidance of 2,719 tonnes of CO² emissions for the month.

In January, the electricity generated by our proprietary portfolio were short of estimates by -12.9%. Our Czech, Slovak, Hungarian and Australian portfolios underperformed energy forecasts by -13.3%, -23.5%, -25.1% and -2.7% respectively. The specific performance ratio of the proprietary portfolio (SPR) reached 58.2 kWh/kWp compared to 70.1 kWh/kWp one year ago (-17.0% yearon year).

Table 2. Estimated Revenues from Electricity Generation in January 2023*

Portfolio	Capacity	Prod. January	Avg. Revenue January	Total Revenue January
Unit	MWp	MWh	EUR/MWh	In Euro thousand
Czech Republic	15.0	352	679	239
Slovakia	10.4	231	262	43
Hungary	51.8	1,742	154	269
Australia	14.7	3,022	65	196
Total Portfolio	91.9	5,346	143	747

* Estimates for revenues are based on management reporting and may deviate from published financial statements due to exchange rates.

** Slovak joint-ventures SK SPV 1 s.r.o., Solarpark Polianka s.r.o., and Solarpark Myjava s.r.o. are consolidated at equity only and therefore not presented in the above table.

3. Reporting on Photon Energy's Project Pipeline

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

Photon Energy is currently developing PV projects in Australia (309.8 MWp), Hungary (78.1 MWp), Romania (227.3 MWp) and Poland (303.0 MWp) and is evaluating further markets for opportunities.

Country 1. Feasibility*		2. Early development	3. Advanced development	4. Ready-to-build technical	5. Under construction	Total in MWp
Romania	8.4	75.9	79.8	31.6	31.5	227.3
Poland	270.4	30.3	2.3	-	-	303.0
Hungary	60.5	13.6	-	4.1	-	78.1
Australia	-	300.0	9.8	-	-	309.8
Total in MWp	339.3	419.8	91.9	35.7	31.5	918.2

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

PV projects have two definitions of capacity. The grid connection capacity is expressed as the maximum of kilowatts or megawatts which can be fed into the grid at any point in time. Electricity grids run on alternating current (AC). Solar modules produce direct current (DC), which is transformed into AC by inverters. Heat, cable lines, inverters and transformers lead to energy losses in the system between the solar modules and the grid connection point. Cumulatively system losses typically add up to 15-20%. Therefore,

Chart 2.a Romanian Project Pipeline in MWp Chart 2.b Polish Project Pipeline in MWp

Chart 2.c Australian Project Pipeline in MWp Chart 2.d Hungarian Project Pipeline in MWp

for a given grid connection capacity a larger module capacity (expressed in Watt peak – Wp) can be installed without exceeding the grid connection limit. At times of extremely high production, inverters can reduce the volume of electricity so that the plant stays within the grid connection limits. Photon Energy will refer to the installed DC capacity of projects expressed in Megawatt peak (MWp) in its reporting, which might fluctuate over the project development process.

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

Country	Location	Dvt Phase	Project function	Share	MWp	Commercial Model	Land	Grid con nection	Construction permit	Expected RTB
Romania	Siria	5	Own portfolio	100%	5.7	Merchant/PPA	Secured	Secured	Secured	Under construction
Romania	Aiud	5	Own portfolio	100%	4.7	Merchant/PPA	Secured	Secured	Secured	Under construction
Romania	Calafat	5	Own portfolio	100%	6.1	Merchant/PPA	Secured	Secured	Secured	Under construction
Romania	Teius	5	Own portfolio	100%	4.8	Merchant/PPA	Secured	Ongoing	Secured	Under construction
Romania	Sahateni 1	5	Own portfolio	100%	7.1	Merchant/PPA	Secured	Secured	Secured	Under construction
Romania	Faget 1	5	Own portfolio	100%	3.2	Merchant/PPA	Secured	Secured	Secured	Under construction
Romania	Faget 2	3	Own portfolio	100%	3.8	Merchant/PPA	Secured	Secured	Secured	Q1 2023
Romania	Faget 3	3	Own portfolio	100%	6.5	Merchant/PPA	Secured	Secured	Ongoing	Q2 2023
Romania	Sarulesti	3	Own portfolio	100%	2.7	Merchant/PPA	Secured	Secured	Ongoing	Q1 2023
Romania	Tamadau Mare	3	Own port folio	100%	10.1	Merchant/PPA	Secured	Secured	Secured	Q1 2023
Romania	Magureni	3	Own portfolio	100%	1.4	Merchant/PPA	Secured	Secured	Ongoing	Q1 2023
Romania	Sannicolau Mare	3	Own portfolio	100%	7.8	Merchant/PPA	Secured	Secured	Secured	Q1 2023
Romania	Bocsa	3	Own portfolio	100%	3.9	Merchant/PPA	Secured	Secured	Secured	Q1 2023
Hungary	Tolna 3-4	4	Own portfolio	100%	2.7	Merchant/PPA	Secured	Secured	Secured	Q4 2022
Hungary	Tolna 5	3	Own portfolio	100%	1.3	Merchant/PPA	Ongoing	Secured	Secured	Q1 2023
Hungary	Tolna 6-13	2	Own portfolio	100%	21.8	Merchant/PPA	Ongoing	Secured	Secured	Q3 2023
Australia	Boggabri	3	Own portfolio	100%	9.8	Merchant/PPA	Secured	Secured	Ongoing	Q2 2023
Australia	Yadnarie	2	All options open	100%	300.0	All options open	Secured	Ongoing	Ongoing	Q4 2023

Australia

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

► Raygen project (300 MWp): In November 2021, the Group secured 1,200 hectares of land in South Australia to develop a 300 MWp solar farm with a grid connection capacity of 150 MW suitable for RayGen's solar technology in combination with its energy storage solution. The target storage energy storage capacity is 3.6 GWh, equivalent to 24 hours of full load, to the grid, from storage. This will exceed the 3 GWh capacity of the Ouarzazate Solar Power Station in Morocco, which currently has the world's largest energy storage capacity of any type, excluding pumped hydro.

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

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

► Boggabri project (9.8 MWp): In November 2022, the Company acquired the development rights and land for a 9.8 MWp/10 MWh solar and battery energy storage system facility in New South Wales. The project is located in the vicinity of the town of Boggabri, nearly 500km north-west of Sydney. It will extend over 22 hectares of greenfield land and will be equipped with over 16,500 high-efficiency bifacial solar modules mounted on single-axis trackers.

The facility will deliver around 16.4 GWh of renewable energy annually to the grid operated by Essential Energy. The electricity will be sold on the energy market on a merchant basis. Photon Energy Group expects to break ground on the project towards the end of the second quarter of 2023.

The project represents the Company's first utility-scale solarplus-storage installation and will serve as a prototype for a future roll-out across Photon Energy Group's European markets.

Hungary

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

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

In December 2020, one of the 1MW AC (approx. 1.4 MWp DC) projects was granted a METAR premium of 24,470 HUF/MWh (approx. EUR 68 per MWh) with a maximum supported production of 21,585 MWh over a period of up to 15 years. This achievement results from the approval of the project application to the first pilot tender for the METAR system organized in September 2019.

Two power plants have been constructed and commissioned to date, with a third one in advanced development after securing the binding extraction and construction permits. These additions expand the Company's portfolio in Hungary to a total of 63, with a combined capacity of 51.8 MWp. They are the first European utility-scale PV power plants in our IPP portfolio operated without a support scheme. The annual production of each power plant is expected to be around 2.1 GWh. Each of these power plants extends over 2.2 hectares, uses bi-facial PV modules mounted on single-axis trackers and is connected to the grid of E.ON Dél-dunántúli Áramhálózati Zrt.

The electricity is sold on the national electricity market on a merchant basis. Entering into a contract-for-difference based on a METÁR license (for the project that has proven successful through the auction process) or entering into PPAs in the future, remain possible options.

Romania

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

► Siria (5.7 MWp) project:

In June 2022, the Company broke ground on the construction of its very first Romanian PV power plant with a capacity of 5.7 MWp. High efficiency bifacial solar modules mounted on single-axis trackers will deliver around 8.7 GWh of renewable energy annually to the grid of Enel E-Distributie Banat. The power plant will extend over 9.3 hectares of greenfield land and will be equipped with some 10,600 solar panels. The construction of the power plant including MV works has been completed and will be energized for testing mid-

February.

► Aiud (4.7 MWp) project:

In July 2022, the Company announced that it started the construction of its second Romanian PV power plant in Aiud with a capacity of 4.7 MWp and an expected annual generation of 6.8 GWh that will be delivered to the grid of Distribuție Energie Electrică Romania. Located near Aiud in Romania's Alba County, the power plant will extend over 6.6 hectares of greenfield land and is equipped with around 8,700 solar panels. The low-voltage works of the power plant have been completed and awaits medium-voltage connection cable installation. The project energization and testing period is planned for early March.

► Calafat (6.1 MWp) project:

In July 2022, the Company announced that it started the construction of another three Romanian PV power plant with a combined capacity of 6.1 MWp and an expected annual generation of 9.6 GWh that will be delivered to the grid of Distribuție Energie Oltenia. Located near Calafat in Romania's Dolj County, the power plants will extend over 10.2 hectares of greenfield land and will be equipped with some 10,800 solar panels. Currently, the construction of the power plant has been completed including MV works while installation of the monitoring system is on-going. Energization and testing is planned for March 2023.

► Teius (4.8 MWp) project:

In August 2022, the Company announced that it started the construction of another Romanian PV power plant with a capacity of 4.8 MWp and an expected annual generation of 7.1 GWh that will be delivered to the grid of Distribuție Energie Electrică Romania. Located near Teiuș in Romania's Alba County, the power plant will extend over 10 hectares of greenfield land and will be equipped with some 8,700 solar panels. The low-voltage works of the power plant have been completed and awaits medium-voltage connection cable installation. The project energization and testing period is planned for early March with project Aiud.

► Săhăteni (7.1 MWp) project:

In September 2022, the Company announced that it started the construction of another Romanian PV power plant with a generation capacity of 7.1 MWp and an expected annual generation of 11.4 GWh that will be delivered to the grid of SDEE Electrica Muntenia Nord. Located near Săhăteni in Romania's Buzău County, the power plant will extend over 10 hectares of greenfield land and will be equipped with some 12,700 solar panels using mounting structures of fixed modules and trackers. All low voltage works including Structure, tracking system, invertors and modules have been completed. Medium Voltage connection works and monitoring systems are to be installed.

► Faget (3.2MWp) project:

At the end of 2022, the Company started the construction of another Romanian PV power plant with a generation capacity of 3.2 MWp and an expected annual generation of 4.7 GWh that will be delivered to the grid of E- Distributie Dobrogea. The power plant is starting to take shape it awaits the last pieces of modules, security and medium voltage connection cables. The project is on schedule to complete physical construction by end of Q1 2023.

Commission requests have started for these projects with the construction almost finalized. All projects to be built in Romania will be selling electricity after grid connection on a merchant basis into the grid.

Upon the commissioning of these plants, the Company will own and operate 96 solar power plants with a combined generation capacity of 122 MWp in its IPP portfolio. A combined 107 MWp will be selling subsidy-free clean electricity directly on the energy market.

Glossary of terms	Definitions
Development phase 1: "Feasibility"	LOI or MOU signed, location scouted and analyzed, working on land lease/purchase, environmental assessment and application for grid connection.
Development phase 2: "Early development"	Signing of land option, lease or purchase agreement, Environmental assessment (environmental impact studies "EIS" for Australia), preliminary design. Specific to Europe: Application for Grid capacity, start work on permitting aspects (construction, connection line, etc.). Specific to Australia: community consultation, technical studies.
Development phase 3: "Advanced development"	In Europe: Finishing work on construction permitting, Receiving of MGT (HU)/ATR (ROM) Letter, Finishing work on permitting for connection line, etc. In Australia: Site footprint and layout finalised, Environmental Impact Statement and development application lodged. Grid connec tion studies and design submitted.
Development phase 4: "Ready-to-build tech nical"	In Europe: Project is technical ready to build, we work on offtake model (if not FIT or auction), securing financing (internal/external). In Australia: Development application approved, offer to connect to grid received and detailed design commenced. Financing and off-take models/arrangements (internal/external) under negotiation.
Development phase 5: "Under construction"	Procurement of components, site construction until the connection to the grid. On top for Australian projects, signature of Financing and off-take agreements, reception of Construction certificate, conclusion of connection agreement, EPC agreement, Grid connection works agreements.

4. Enterprise Value & Share Price Performance

4.1 Main Market of the Warsaw Stock Exchange

On 31 January 2023 the Company's shares (ISIN NL0010391108) closed at a price of PLN 13.20 (+0.8% MoM), corresponding to a price to book ratio of 2.65. The monthly trading volume amounted to 205,475 shares (vs. an average monthly volume of 443,791 over the past twelve months).

Chart 3. Enterprise Value vs. Trailing 12 Months (TTM) EBITDA

Notes:

EV – Enterprise value is calculated as the market capitalisation as of the end of the reporting month, plus debt, plus minority interest, minus cash. All the balance sheet data are taken from the last quarterly report.

Trailing 12 months EBITDA – defined as the sum of EBITDA reported in the last four quarterly reports; i.e. the sum of EBITDA reported in Q1 2022, Q2 2022, Q3 2022 and Q4 2022.

Chart 5. Total Monthly Volumes vs. Daily Closing Stock Prices

Chart 4. Enterprise Value / EBITDA and Price to Book

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

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

4.2 Main Market of the Prague Stock Exchange

On 31 January 2023 the share price (ISIN NL0010391108) closed at a level of CZK 66.40 (-1.2% MoM), corresponding to a price to book ratio of 2.76. The Company reports a monthly trading volume of 143,666 shares, compared to an average monthly trading volume of 410,377 over the past twelve months.

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

4.3 Quotation Board of the Frankfurt Stock Exchange

On 31 January 2023, the share price (FSX: A1T9KW) closed at a level of EUR 2.74 (unchanged MoM), corresponding to a price to book ratio of 2.71.

The Company reports a monthly trading volume of 6,000 shares, compared to an average monthly trading volume of 36,758 over the past twelve months.

The Company's shares have been traded on the Quotation Board of the Frankfurt Stock Exchange since 11 January 2021. Since 28 July 2020, the Company's shares have been traded on the Free

4.4 XETRA Trading Platform (German Stock Exchange)

On 31 January 2023, the share price (FSX: A1T9KW) closed at a level of EUR 2.77 (+1.1% MoM), corresponding to a price to book ratio of 2.74.

5. Bond Trading Performance

In December 2016 the Company issued a 7-year corporate bond with a 6% annual coupon and monthly payments in the Czech Republic. The corporate bond (ISIN CZ0000000815) with a nominal value of CZK 30,000 has been traded on the Free Market of the Prague Stock Exchange since 12 December 2016. The outstanding amount is CZK 75.9 million (EUR 3.1 million) and will be repaid on 13 December 2023.

On 17 November 2021, The Company successfully placed its 6.50% Green EUR Bond 2021/2027 (ISIN: DE000A3KWKY4) in the amount of EUR 50 million. The bond issuance was met with strong demand from the Company's existing bondholders, who subscribed to EUR 21.281 million in the exchange that was offered for the existing EUR Bond 2017/2022. The green bond – with an interest rate of 6.50% p.a., paid quarterly – was confirmed by imug | rating with regard to its sustainability in a Second Party Opinion, and can be traded on the Open Market of the Frankfurt Stock Exchange.

On 29 November 2021, the Group successfully increased the bond placement by EUR 5 million with all parameters unchanged, bringing the total outstanding bond volume to EUR 55 million.

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

5.1 Green EUR Bond 2021/27 Trading Performance in Frankfurt

Green EUR Bond 2021/27 trading performance to date

In the trading period from 17 November 2021 until 31 January 2023, the trading volume amounted to EUR 8.779 million with an opening price of 100.00 and a closing price of 100.00 in Frankfurt. During this period the average daily turnover amounted to EUR 27,180.

5.2 CZK Bond 2016/23 Trading Performance in Prague

In the trading period from 12 December 2016 until 31 January 2023, the trading volume amounted to CZK 40.500 million with a closing price of 98.00.

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

The Company's shares have been listed on the electronic trading platform XETRA (provided by the German Stock Exchange) since 7 December 2022.

The Company reports a monthly trading volume of 13,247 shares (-37.5% MoM).

In October 2022 and November 2022, the Company announced that it has tapped its 6.50% Green EUR Bond 2021/2027 (ISIN: DE000A3KWKY4) in the amount of another EUR 12.5 million to a total outstanding amount of EUR 77.5 million. In this round the bonds were again offered to bondholders of the older 2017/2022 corporate bonds in form of an exchange offer with a 1.5% loyalty premium plus the difference in net accrued interest on each exchanged bond. Existing investors registered around 6.0 million euros nominally for exchange, which corresponds to a ratio of 30% of the outstanding bond. Together with the initial exchange offer organized in November 2021, 60% of the outstanding volume of the Company's 2017/2022 bond got exchanged for the new Green EUR Bond.

This tap issuance of the 2021/2027 Green bonds was included into trading on the Quotation Board trading segment of the Open Market (Freiverkehr) on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) on 14 October 2022.

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

Green EUR Bond 2021/27 trading performance in January 2023

In January 2023 the trading volume amounted to EUR 511,000 in Frankfurt with an opening price of 102.40 and a closing price of 100.00. The average daily turnover amounted to EUR 23,227.

6. Investors' calendar

• ► 28 February 2023: Pareto Securities Power & Renewable Energy Conference 2023, Oslo
• ► 14 March 2023: Monthly report for February 2023
• ► 13 April 2023: Monthly report for March 2023
• ► 11 May 2023: Entity and consolidated quarterly reports for Q1 2023
• ► 12 May 2023: Online presentation of Photon Energy Group's Q1 2023 results
• ► 12 May 2023: Monthly report for April 2023
• ► 15-17 May 2023: German Spring Conference, Frankfurt
• ► 14 June 2023: Monthly report for May 2023
• ► 14 July 2023: Monthly report for June 2023
• ► 16 August 2023: Entity and consolidated reports for Q2 2023 / H1 2023
• ► 17 August 2023: Online presentation of Photon Energy Group's Q2 2023/H1 2023 results
• ► 17 August 2023: Monthly report for July 2023
• ► 13 September 2023: Monthly report for August 2023
• ► 12 October 2023: Monthly report for September 2023
• ► 13 November 2023: Entity and consolidated quarterly reports for Q3 2023
• ► 14 November 2023: Online presentation of Photon Energy Group's Q3 2023 results
• ► 14 November 2023: Monthly report for October 2023
• ► 13 December 2023: Monthly report for November 2023

7. Investor Relations Contact

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

Photon Energy N.V. Barbara Strozzilaan 201 1083 HN Amsterdam The Netherlands Web: www.photonenergy.com

Amsterdam, 16 February 2023

Georg Hotar, Member of the Board of Directors Michael Gartner, Member of the Board of Directors