Photon Energy N.V.

Regulatory Filings • May 13, 2022

Photon Energy N.V.

Monthly Report for April 2022

For the period from 1 to 30April 2022

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 37.5 GWh of electricity produced YTD compared to 24.1 GWh one year ago (+56.1%) propelled by the addition of a new power plant in Tolna, Hungary (1.4 MWp added in December 2021) and of our two utility-scale PV power plants in Leeton, Australia (14.6 MWp connected to the grid in August 2021). This represents an avoidance of 15,818 tonnes of CO2 emissions year-to-date.

In April the proprietary portfolio underperformed the audits by - 9.6% due to bad weather conditions.

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

1.2 Photon Energy switches 43.5 MWp of its Hungarian PV portfolio to merchant electricity sales

From 1 April 2022 the Group has temporarily switched all Hungarian PV power plants in its proprietary portfolio receiving support on the basis of KÁT-licenses and METÁR-KÁT-licenses to selling the produced electricity on the Hungarian day-ahead-market to benefit from the currently much higher electricity prices effective. Government Decree No 787/2021 (XII.27.), published in the Hungarian Official Gazette on 27 December 2021, which came into effect on 1 January 2022, allows PV power plants to temporarily exit the support schemes and to return to the respective support scheme at any time after a 12-month-period.

The Group also permanently opted out of six of ten METÁR licenses for its PV power plants in Puspokladány and will be selling the produced electricity on the Hungarian day-ahead-market to benefit from the currently much higher electricity prices.

Photon Energy's portfolio of KÁT- and METÁR-KÁT-licensed PV power plants consists of 51 units with a total installed capacity of 35 MWp. The six METÁR-licensed PV power plants which have permanently exited the support scheme have a combined installed capacity of 8.5 MWp and the four METÁR-licensed PV power plants remaining in the support scheme have a total installed capacity of 5.6 MWp.

The Management Board of the Group is convinced that based on the current electricity market outlook for the following 24-36 months this mostly reversible exit from the Hungarian support scheme strongly improves the Group's profitability and maximizes the return on investment on its Hungarian portfolio.

For detailed achieved prices, please refer to chapter 2. Proprietary PV power plants.

1.3 Photon Energy received Crown Sponsorship for its Raygen project in Yadnarie, South Australia

The Raygen project in Yadnarie with a planned generation capacity of 300 MWp and a target storage energy capacity of 3.6 GWh 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.

Earlier this year, 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.

1.3 Photon Energy Share Receives 'Buy' Recommendation from AlsterResearch Analysts

The Company's stock has been given a 'buy' recommendation by AlsterResearch, a Hamburg-based research house specialising in small and mid-caps. The research report views the Company as an early mover in the solar market with a clear focus, well-positioned to benefit from current trends in the energy sector. The analysts have high expectations for Photon Energy Group's growth outlook and begin their coverage with a recommendation to buy, setting a target price of EUR 4.10 (approx. PLN 19.0, CZK 100.0) for the Company's shares.

AlsterResearch views solar as a crucial building block in the decarbonisation of economies and thus expects it to be the fastest growing renewable energy source. Photon Energy Group fits well into this trend, combining strong ESG credentials with transparent reporting and open capital market communications.

The Company's decision to supply clean energy directly to the market on a merchant basis going forward and its ability to partially switch some of the plants in its IPP portfolio from fixed feed-in tariffs to higher market prices could result in an estimated compound annual growth rate (CAGR) for 2021 - 2024 of 37% for revenues and 72% for EBITDA.

According to AlsterResearch, the above factors make Photo Energy Group's stock highly investable despite its relatively small size.

1.5 Photon Energy Group Expands its IPP Portfolio to 92 MWp

After the reporting period, the Group completed and grid-connected its second photovoltaic power plant near the municipality of Tolna, Hungary. The plant has a capacity of 1.4 MWp.

This latest addition expands the Company's portfolio of proprietary power plants in Hungary to a total of 63, with a combined capacity of 51.8 MWp. Globally, the Company now owns and operates 88 power plants with a combined capacity of 91.9 MWp, including over 60 MWp operating on a merchant basis, selling clean electricity at market prices, without governmental subsidies.

The new power plant extends over 2.8 hectares and uses bi-facial PV modules mounted on single-axis trackers. Connected to the grid of E.ON Dél-dunántúli Áramhálózati Zrt., the installation is expected to generate around 2.1 GWh of clean electricity per year. This corresponds to expected revenues of EUR 440,000 based on

current forward prices for electricity base load in Hungary in the next 12 months.

The electricity is sold on the national electricity market on a merchant basis. This means no power purchase agreements (PPAs) have been entered into by the Company. However, they may play a role in the plant's future revenue management strategy, alongside other hedging options.

The total investment into the development and construction of the power plant was EUR 1.0 million and was financed by the proceeds of Photon Energy Group's 6.50% Green EUR Bond 2021/2027, with a placed volume of EUR 55 million.

The Company developed the project fully in-house and delivered engineering, procurement and construction services through its subsidiary Photon Energy Solutions HU Kft. Photon Energy Operations HU Kft. – another of the Group's subsidiaries – will provide long-term monitoring, operations and maintenance services to the power plant.

1.6 Reporting on Photon Energy's project pipeline

Photon Energy is currently developing PV projects in Australia (300.0 MWp), Hungary (25.8 MWp), Romania (226.0 MWp) and Poland (224.8 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 April 2022

Project name	Capacity	Revenue1	Prod. 2022 April	Proj. 2022 April	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in April	kWh	kWh	%	kWh	kWh	%	%
Komorovice	2,354	EUR 734	254,522	298,383	-14.7%	746,346	689,418	8.3%	27.2%
Zvíkov I	2,031	EUR 735	220,437	264,719	-16.7%	696,371	656,732	6.0%	18.8%
Dolní Dvořiště	1,645	EUR 737	148,484	190,278	-22.0%	462,097	452,935	2.0%	10.1%
Svatoslav	1,231	EUR 731	116,383	134,348	-13.4%	338,002	311,141	8.6%	20.1%
Slavkov	1,159	EUR 731	138,991	156,940	-11.4%	427,973	371,263	15.3%	22.1%
Mostkovice SPV 1	210	EUR 731	23,534	26,244	-10.3%	70,143	61,057	14.9%	31.4%
Mostkovice SPV 3	926	EUR 778	106,875	116,907	-8.6%	314,164	267,645	17.4%	28.6%
Zdice I	1,499	EUR 730	177,476	196,739	-9.8%	508,822	468,549	8.6%	16.9%
Zdice II	1,499	EUR 730	180,202	198,785	-9.3%	519,758	474,644	9.5%	15.2%
Radvanice	2,305	EUR 732	264,390	297,472	-11.1%	779,190	679,712	14.6%	29.0%
Břeclav rooftop	137	EUR 734	16,356	18,184	-10.0%	50,592	44,711	13.2%	22.7%
Total Czech PP	14,996		1,647,648	1,899,000		-13.2% 4,913,457	4,477,805	9.7%	21.2%
Babiná II	999	EUR 271	95,953	103,832	-7.6%	281,091	242,928	15.7%	15.9%
Babina III	999	EUR 271	95,088	105,765	-10.1%	279,258	249,336	12.0%	11.8%
Prša I.	999	EUR 270	95,201	112,372	-15.3%	296,677	269,348	10.1%	15.9%
Blatna	700	EUR 273	72,994	80,244	-9.0%	200,619	184,147	8.9%	12.7%
Mokra Luka 1	963	EUR 258	107,103	121,332	-11.7%	387,919	325,330	19.2%	20.6%
Mokra Luka 2	963	EUR 257	107,580	128,143	-16.0%	399,351	339,588	17.6%	20.8%
Jovice 1	979	EUR 263	82,214	98,331	-16.4%	254,595	229,416	11.0%	21.8%
Jovice 2	979	EUR 263	82,292	97,230	-15.4%	252,315	226,654	11.3%	21.7%
Brestovec	850	EUR 257	102,407	117,304	-12.7%	329,463	285,024	15.6%	24.2%
Polianka	999	EUR 261	93,807	109,007	-13.9%	277,692	248,434	11.8%	24.2%
Myjava	999	EUR 259	97,842	128,965	-24.1%	338,982	299,695	13.1%	22.8%
Total Slovak PP	10,429		1,032,481	1,202,526		-14.1% 3,297,961	2,899,899	13.7%	19.5%
Tiszakécske 1	689	EUR 175	83,427	88,791	-6.0%	268,497	239,621	12.1%	14.1%
Tiszakécske 2	689	EUR 175	83,681	88,923	-5.9%	271,071	241,968	12.0%	14.1%
Tiszakécske 3	689	EUR 175	82,197	88,100	-6.7%	254,985	232,349	9.7%	12.8%
Tiszakécske 4	689	EUR 175	79,111	88,923	-11.0%	267,648	241,968	10.6%	12.2%
Tiszakécske 5	689	EUR 175	83,265	88,791	-6.2%	268,757	239,621	12.2%	17.0%
Tiszakécske 6	689	EUR 175	83,471	88,923	-6.1%	269,911	241,968	11.5%	14.0%
Tiszakécske 7	689	EUR 175	83,399	88,762	-6.0%	270,563	239,434	13.0%	14.1%
Tiszakécske 8	689	EUR 174	79,406	88,661	-10.4%	262,555	238,327	10.2%	12.0%
Almásfüzitő 1	695	EUR 171	86,412	88,843	-2.7%	257,699	239,823	7.5%	8.0%
Almásfüzitő 2	695	EUR 170	83,880	88,807	-5.5%	249,023	239,617	3.9%	7.3%
Almásfüzitő 3	695	EUR 170	83,480	88,667	-5.8%	253,466	237,983	6.5%	8.5%
Almásfüzitő 4	695	EUR 171	86,313	88,951	-3.0%	257,917	240,484	7.2%	7.7%
Almásfüzitő 5	695	EUR 171	86,993	88,713	-1.9%	266,308	238,508	11.7%	8.6%
Almásfüzitő 6	660	EUR 171	86,727	85,651	1.3%	262,623	229,777	14.3%	8.1%
Almásfüzitő 7	691	EUR 171	86,750	88,268	-1.7%	261,175	237,127	10.1%	8.0%
Almásfüzitő 8	668	EUR 171	87,379	86,476	1.0%	259,649	232,608	11.6%	7.6%
Nagyecsed 1	689	EUR 177	77,977	88,219	-11.6%	247,011	233,641	5.7%	8.2%
Nagyecsed 2	689	EUR 177	77,462	88,219	-12.2%	245,701	233,641	5.2%	6.8%
Nagyecsed 3	689	EUR 177	77,884	88,381	-11.9%	248,884	233,606	6.5%	7.5%
Fertod I	528	EUR 165	67,811	67,318	0.7%	206,380	177,020	16.6%	9.1%
Fertod II No 2	699	EUR 167	76,353	90,710	-15.8%	268,882	239,846	12.1%	9.4%
Fertod II No 3	699	EUR 167	76,335	90,710	-15.8%	268,879	239,846	12.1%	8.9%
Fertod II No 4	699	EUR 167	76,168	90,710	-16.0%	268,691	239,846	12.0%	6.8%

Project name	Capacity	Revenue	Prod. 2022 April	Proj. 2022 April	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in April	kWh	kWh	%	kWh	kWh	%	%
Fertod II No 5	691	EUR167	75,561	90,819	-16.8%	266,741	242,296	10.1%	8.9%
Fertod II No 6	699	EUR 167	75,978	90,710	-16.2%	268,014	239,846	11.7%	9.1%
Kunszentmárton I No 1	697	EUR 173	85,873	89,958	-4.5%	280,298	246,327	13.8%	11.6%
Kunszentmárton I No 2	697	EUR 173	85,490	89,962	-5.0%	274,975	246,375	11.6%	11.0%
Kunszentmárton II No 1	693	EUR 175	86,884	96,927	-10.4%	282,503	233,040	21.2%	9.7%
Kunszentmárton II No 2	693	EUR 175	87,392	96,927	-9.8%	282,444	233,336	21.0%	9.6%
Taszár 1	701	EUR 173	82,988	91,560	-9.4%	282,268	253,218	11.5%	12.5%
Taszár 2	701	EUR 173	83,090	91,560	-9.3%	282,764	253,218	11.7%	12.5%
Taszár 3	701	EUR 173	83,071	91,560	-9.3%	282,426	253,218	11.5%	11.8%
Monor 1	688	EUR 175	83,045	87,345	-4.9%	278,527	237,023	17.5%	11.7%
Monor 2	696	EUR 176	82,470	90,521	-8.9%	272,637	244,966	11.3%	9.6%
Monor 3	696	EUR 175	83,103	90,521	-8.2%	277,814	244,966	13.4%	13.1%
Monor 4	696	EUR 173	82,912	90,521	-8.4%	276,968	244,966	13.1%	11.5%
Monor 5	688	EUR 174	82,768	90,784	-8.8%	277,772	241,776	14.9%	11.6%
Monor 6	696	EUR 174	83,122	90,521	-8.2%	278,506	244,966	13.7%	12.7%
Monor 7	696	EUR 174	82,859	90,521	-8.5%	275,686	244,966	12.5%	11.0%
Monor 8	696	EUR 174	83,230	90,521	-8.1%	278,962	244,966	13.9%	13.1%
Tata 1	672	EUR 178	92,949	100,664	-7.7%	258,205	240,651	7.3%	8.2%
Tata 2	676	EUR 170	82,183	89,104	-7.8%	250,667	237,124	5.7%	7.5%
Tata 3	667	EUR 171	82,265	87,769	-6.3%	251,588	230,714	9.0%	8.3%
Tata 4	672	EUR 171	94,858	102,816	-7.7%	264,487	246,868	7.1%	9.9%
Tata 5	672	EUR 174	92,600	103,124	-10.2%	260,550	247,779	5.2%	31.4%
Tata 6	672	EUR 175	94,737	101,658	-6.8%	261,734	243,591	7.4%	8.9%
Tata 7	672	EUR 174	94,019	100,723	-6.7%	259,698	240,824	7.8%	7.6%
Tata 8	672	EUR 174	95,098	102,078	-6.8%	265,217	244,757	8.4%	8.4%
Malyi 1	695	EUR 172	77,660	89,208	-12.9%	256,902	231,458	11.0%	16.0%
Malyi 2	695	EUR 172	77,862	89,295	-12.8%	258,602	231,800	11.6%	16.6%
Malyi 3	695	EUR 172	78,007	89,295	-12.6%	259,171	231,800	11.8%	16.8%
Puspokladány 1	1,406	EUR 94	183,424	196,603	-6.7%	540,595	485,389	11.4%	6.8%
Puspokladány 2	1,420	EUR 183	187,346	191,926	-2.4%	562,630	464,356	21.2%	9.8%
Puspokladány 3	1,420	EUR 183	183,988	188,063	-2.2%	549,712	453,003	21.3%	9.9%
Puspokladány 4	1,406	EUR 183	182,981	195,194	-6.3%	547,247	482,146	13.5%	8.4%
Puspokladány 5	1,420	EUR 183	186,652	191,584	-2.6%	563,068	463,279	21.5%	9.7%
Puspokladány 6	1,394	EUR 94	182,005	194,613	-6.5%	543,996	473,267	14.9%	10.1%
Puspokladány 7	1,406	EUR 94	183,048	195,076	-6.2%	547,187	481,829	13.6%	9.1%
Puspokladány 8	1,420	EUR 183	183,435	188,626	-2.8%	549,272	454,459	20.9%	9.7%
Puspokladány 9	1,406	EUR 94	182,941	194,962	-6.2%	546,742	481,525	13.5%	21.5%
Puspokladány 10	1,420	EUR 183	183,421	187,885	-2.4%	549,448	452,547	21.4%	10.1%
Tolna	1,358	EUR 177	204,615	219,796	-6.9%	588,449	553,718	6.3%	na
Total Hungarian PP	50,456		6,291,811	6,769,812	-7.1%	19,610,744	17,430,985	12.5%	14.2%
Symonston	144	EUR 238	9,400	11,173	-15.9%	56,300	67,352	-16.4%	-14.8%
Leeton	7,261	EUR 123	932,090	1,060,670	-12.1%	4,848,560	5,315,290	-8.8%	na
Fivebough	7,261	EUR 125	918,820	1,045,745	-12.1%	4,810,900	5,259,570	-8.5%	na
Total Australian PP	14,744		1,860,310	2,117,588	-12.1%	9,715,760	10,642,212	-8.7%	nm
Total	90,547		10,832,250	11,988,926	-9.6%	37,537,922	35,450,902	5.9%	56.1%

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 2022 / YTD proj. in 2022) – 1

YTD YOY: (YTD Prod. in 2022 / YTD Prod. in 2021) – 1.

¹ All amounts were converted using the following exchange rates (sources ECB):

-

.

• in the Czech Republic: EUR/CZK of 24.60 as of 30 April 2022 applied to Green Bonus + realized electricity price.

• in Hungary, daily exchange EUR/HUF rates applied to realized electricity price

• in Australia, EUR/AUD of 1.47 as of 30 April 2022 applied to realized electricity price during the reporting period + Australian Large-scale Generation Certificate spot closing price at the end of the reporting period.

Chart 1.a Total production of the Czech portfolio Chart 1.b Total production of the Slovak portfolio

Chart 1.c Total production of Hungarian portfolio Chart 1.d Total production of Australian portfolio

The Company reports 37.5 GWh of electricity produced YTD compared to 24.1 GWh one year ago (+56.1%) propelled by the addition of a new power plant in Tolna, Hungary (1.4 MWp added in December 2021) and of our two utility-scale PV power plants in Leeton, Australia (14.6 MWp connected to the grid in August 2021). This represents an avoidance of 15,817 tonnes of CO² emissions year-to-date.

In April the proprietary portfolio underperformed the audits by - 9.6% due to bad weather conditions.

Our Czech, Slovak, and Hungarian portfolios missed energy forecasts by 39.6%, 31.1% and 22.8%, respectively, while our Australian portfolio was short of estimates by 10.4%.

The specific performance ratio of the proprietary portfolio (SPR) reached 119.6 kWh/kWp compared to 119.3 kWh/kWp one year ago (+0% year-on year).

Table 2. Estimated Revenues from Electricity Generation in April 2022*

Portfolio	Capacity	Prod. April	Avg. Revenue April	Total Revenue April	YTD Avg. Revenue	YTD Revenue
Unit	MWp	MWh	per MWh	In Euro thousand	per MWh, in 2022	In Euro thousand
Czech Republic	15.0	1,648	EUR 735	1,212	EUR 761	3,737
Slovakia	10.4	1,032	EUR 263	196**	EUR 263	622**
Hungary	50.5	6,292	EUR 166	1,042	EUR 121	2,381
Australia	14.7	1,860	EUR 124	232	EUR 92	895
Total Portfolio	90.5	10,832	EUR 255	2,681	EUR 203	7,637

* 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 (300.0 MWp), Hungary (25.8 MWp), Romania (226.0 MWp) and Poland (224.8 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
Australia	-	300.0	-	-	-	300.0
Hungary	-	23.1	2.7	-		25.8
Romania	29.5	75.8	115.0	5.7	-	226.0
Poland	192.4	32.4	-	-	-	224.8
Total in MWp	221.9	431.3	117.7	5.7		776.6

*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 be-tween the solar modules and the grid connection point. Cumulatively system losses typically add up to 15-20%. Therefore, for a given grid connection capacity a larger module capacity

Chart 4.a Australian project pipeline in MWp Chart 4.b Hungarian project pipeline in MWp

(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	Construc tion permit	Expected RTB
Australia	Yadnarie	2	All options open	100%	300.0	All options open	Secured	Ongoing	Ongoing	Q4 2023
Hungary	Tolna 1b	3	Own port folio	100%	2.7	Merchant/PPA	Secured	Secured	Secured	Q2 2022
Hungary	Tolna 2	2	Own Port folio	100%	23.1	Merchant/PPA	Ongoing	Secured	Secured	Q3 2022
Romania	Siria	4	Own Port folio	100%	5.7	Merchant/PPA	Secured	Secured	Secured	Q2 2022
Romania	Sahateni	3	Own Port folio	100%	12.0	Merchant/PPA	Secured	Secured	Ongoing	Q2 2022

Australia

During the reporting period, Photon Energy had one large scale solar farm under development.

In November 2021, the Group secured 1,200 hectares of land in South Australia to develop a 300 MWp solar farm suitable for Ray-Gen's solar technology in combination with its energy storage solution.

► Development status Raygen project (300 MWp): Based on preliminary designs, Photon Energy will develop a solar generation capacity of 300 MWp with a grid connection capacity of 150 MW. 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 already 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.

Hungary

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

► Tolna (25.8 MWp in development, 1.4 MWp project commissioned on 9 December 2021 and 1.4 MWp commissioned on 5 May 2022): The thirteen projects with a total planned installed DC capacity of 28.6 MWp are 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 already partially approved, to allow us to conclude grid connection agreements with E.ON. with a validity of two years.

On 8 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. Outside this project, 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.

The revenue model will be the direct sale of electricity through a trader on the Hungarian electricity market for the time being. 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. Construction plans include the use of tracking technology allowing bi-facial solar modules to follow the course of the sun, which are expected to achieve a 15-20% higher specific performance than fixed installations.

On 9 December 2021, we completed and grid-connected the first photovoltaic power plant with a capacity of 1.4 MWp near the municipality of Tolna.

On 5 May 2022, we completed and grid-connected the second photovoltaic power plant with a capacity of 1.4 MWp near Tolna.

These latest additions expand the Company's portfolio of proprietary power plants in Hungary to a total of 63, with a combined capacity of 51.8 MWp.

The new power plants represent the first European utilityscale PV power plants in Photon Energy Group's IPP portfolio that the Company operates without a support scheme. The total annual production of each power plant is expected to be around 2.1 GWh, which corresponds to expected annual revenues of EUR 440,000 based on current forward prices for electricity base load in Hungary.

Each of these new 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. This means no power purchase agreements (PPAs) have been entered into by the Company. However, they may play a role in the plant's future revenue management strategy, alongside other hedging options.

The Company developed the projects fully in-house and delivered engineering, procurement and construction services through its subsidiary Photon Energy Solutions HU Kft. Photon Energy Operations HU Kft. – another of the Group's subsidiaries – will provide long-term monitoring, operations and maintenance services to the power plants.

Romania

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

► Development status project Siria in the viniciity of Arad (5.7 MWp): This is the first project the Company plans to construct in 2022 and the first project in Romania. The project Siria will be constructed in western Romania, Northeast of Timisoara with a specific production of 1,533 kWh/kWp per year. The development started in 2021 and project was acquired in 2022 Q1. The Company is in the process of submitting the final set-up licence to the DSO, E-Distributie (CEZ Romania) with construction planned to begin early Q3 2022. The project will be built on Trackers with bi-facial modules and is expected to produce around 9 GWh of clean energy per year.

Glossary of terms	Definitions
Development phase 1: "Feasibility"	LOI or MOU signed, location scouted and analyzed, working on land lease/purchase, environmental assessment and applica tion for grid connection.
Development phase 2: "Early development"	Signing of land option, lease or purchase agreement, Environmental assessment (environmental impact studies "EIS" for Aus tralia), 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 connection studies and design submitted.
Development phase 4: "Ready-to-build technical"	In Europe: Project is technical ready to build, we work on offtake model (if not FIT or auction), securing financing (internal/ex ternal). 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 agree ment, Grid connection works agreements.
Glossary of terms	Definitions
NSW Department for Planning and Environment (DP&E)	NSW DP&E is a government agency in charge of planning and development of New South Wales, to ensure the balance between the commercial business development and the needs of local communities. Each project submitted to DP&E must include environmental impact studies (EIS) and once it is reviewed by DP&E, the project is published and available for the public opinion to submit their comments. If the project is rejected by more than 25 people it is moved to Independent Planning Committee (IPC) for review. If there is no public opposition, the project is approved and DP&E issues the project Development Approval (DA)
Independent Planning Com mittee (IPC)	In case more than 25 public petitions against the project are submitted, IPC needs to investigate further into social and envi ronmental impact of the project. IPC might make some recommendations to be made to the project plan to secure the issuance of DA.
Essential Energy	Essential Energy is Distribution Network Service Provider, which operates and manages low voltage electricity network in NSW. The process to secure the grid connection with Essential Energy includes GPS and AEMO's license.
Transgrid	Transgrid is a Distribution Network Service Provider (DNSP), which operates and manages the NSW high voltage transmission network. Transgrid, in co-operation with Australian Energy Market Operator (AEMO, see description below), is in charge of grid connection approval. To issue its decision Transgrid requires Generation Protection Studies (GPS). GPS is a complete analysis and tests of the impact that a potential power plant would have on the grid. Each power plant is tested under different assumptions (extreme weather conditions, demand/supply changes etc.) and its performance/impact on the grid's stability is thoroughly analysed. Once GPS are completed and accepted, Transgrid is issuing grid connection terms. Those terms are part of the agreement signed with Transgrid, which together with AEMO license secures and finalizes the grid connection process.
Australian Energy Market Op erator (AEMO)	AEMO is responsible for operating Australia's largest gas and electricity markets and power systems. AEMO is overlooking all energy producers in NSW and is involved in the process of grid connection approval. AEMO reviews the grid connection terms and GPS studies and issues the license to feed electricity to the grid. AEMO also controls the on-going power generation to make sure that grid stability is maintained.

4. Enterprise value & Share price performance

4.1 Main market of the Warsaw Stock Exchange

On 30 April 2022 the Company's shares (ISIN NL0010391108) closed at a price of PLN 9.60 (+14.3% MoM), corresponding to a price to book ratio of 2.16. The monthly trading volume amounted to 399,603 shares (vs. an average monthly volume of 641,223 over the past twelve months).

Chart 5. 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 Q2 2021, Q3 2021, Q4 2021, and Q1 2022.

Trading of the Company's shares on the regulated market of the Warsaw Stock Exchange (WSE) (Giełda Papierów Wartościowych w Warszawie) commenced on 5 January 2021. Prior to that date, data presented in this section have been extracted from the trading activity on NewConnect.

Chart 6. Enterprise value / trailing 12 months EBITDA and price to book ratio

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.

Chart 7. Total monthly volumes vs. daily closing stock prices

4.2 Main market of the Prague Stock Exchange

On 30 April 2022 the share price (ISIN NL0010391108) closed at a level of CZK 52.60 (+16.4% MoM), corresponding to a price to book ratio of 2.26. The Company reports a monthly trading volume of 521,515 shares, compared to an average monthly trading volume of 383,333 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 30 April 2022, the share price (FSX: A1T9KW) closed at a level of EUR 2.00 (+8.8% compared to last month), corresponding to a price to book ratio of 2.11.

The Company reports a monthly trading volume of 72,412 shares, compared to an average monthly trading volume of 45,279 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 already been traded on the Free 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.

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.

On 27 October 2017 the Company issued a 5-year corporate EUR bond with a 7.75% annual coupon and quarterly coupon payments in Germany, Austria and Luxemburg. The original target volume of EUR 30 million was successfully increased in two steps with all parameters unchanged, to an outstanding amount of EUR 45.0 million prior to the completion of the exchange offer described below. The corporate bond (ISIN DE000A19MFH4) with a nominal value of EUR 1,000 has been traded on the Open Market of the Frankfurt Stock exchange since 27 October 2017. The bond is also listed on the stock exchanges in Berlin, Hamburg, Hannover, Munich and Stuttgart. The total outstanding bond volume amounts to EUR 23.619 million as of the end of the reporting period.

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

5.1 EUR Bond 2017/22 trading performance in Frankfurt

EUR Bond 2017/22 trading performance to date

In the trading period from 25 October 2017 until 30 April 2022, the trading volume amounted to EUR 31.746 million with an opening price of 100.00 and a closing price of 100.50 in Frankfurt. During this period the average daily turnover amounted to EUR 27,823.

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.

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.

On 29 November 2021, the Group successfully increased the bond placement by EUR 5.0 million with all parameters unchanged. The total outstanding bond volume amounts to EUR 55.0 million as of the end of the reporting period.

EUR Bond 2017/22 trading performance in April 2022

In April 2022 the trading volume amounted to EUR 178,000 in Frankfurt with an opening price of 100.00 and a closing price of 100.50 in Frankfurt. The average daily turnover amounted to EUR 9,368.

Chart 8. The Company's EUR bond 2017/22 trading on the Frankfurt Stock Exchange in Germany

5.2 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 30 April 2022, the trading volume amounted to EUR 7.053 with an opening price of 100.00 and a closing price of 100.51 in Frankfurt. During this period the average daily turnover amounted to EUR 50,389.

5.3 CZK Bond 2016/23 trading performance in Prague

In the trading period from 12 December 2016 until 30 April 2022, the trading volume amounted to CZK 40.500 million with a closing price of 98.00.

Green EUR Bond 2021/27 trading performance in April 2022

In April 2022 the trading volume amounted to EUR 134,000 in Frankfurt with an opening price of 99.70 and a closing price of 100.51. The average daily turnover amounted to EUR 7,053.

6. Investors' calendar

• ► 23-25 May 2022: German Spring Conference in Frankfurt
• ► 27-29 May 2022: WallStreet Conference (Zakopane/Online)
• ► 31 May 2022: Annual General Meeting
• ► 14 June 2022: Monthly report for May 2022
• ► 14 July 2022: Monthly report for June 2022
• ► 11 August 2022: Entity and consolidated reports for Q2 2022 / H1 2022
• ► 12 August 2022: Online presentation of Photon Energy Group's Q2 2021/H1 2021 results
• ► 12 August 2022: Monthly report for July 2022
• ► 14 September 2022: Monthly report for August 2022
• ► 13 October 2022: Monthly report for September 2022
• ► 10 November 2022: Entity and consolidated quarterly reports for Q3 2022
• ► 14 November 2022: Online presentation of Photon Energy Group's Q3 2022 results
• ► 14 November 2022 Monthly report for October 2022
• ► 14 December 2022 Monthly report for November 2022

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, 13 May 2022

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