Photon Energy N.V.

Regulatory Filings • Feb 15, 2022

Photon Energy N.V.

Monthly Report for January 2022

For the period from 1 to 31 January 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 6.3 GWh of electricity produced in January 2022 compared to 2.4 GWh one year ago (+166.1%), 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 2,956 tonnes of CO² emissions in January 2022.

In January the proprietary portfolio outperformed the audits by 10.7%.

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

1.2 Photon Energy announces record 2021 revenue and EBITDA

In 2021 the Company increased its unaudited consolidated revenues to EUR 36.359 million, up by 28.7% YoY, with a Q4 revenue record of EUR 11.734 million (+130.3% YoY). This was thanks to a remarkable 77.5% increase in revenues from the sale of electricity generated by the Company's growing proprietary portfolio, while other revenue streams increased by 156.6% YoY.

This strong performance led to an EBITDA of EUR 9.584 million in 2021, as compared to EUR 8.440 million in 2020, up by 13.6% YoY. Q4 EBITDA increased to EUR 1.030 million from a negative Q4 EBITDA of EUR -1.026 million a year ago. In Q4 2021 the company posted an EBIT of EUR -0.771 million compared to EUR - 2.877 million one year ago, representing a significant improvement for a traditionally weak Q4. For the full year EBIT contracted to EUR -0.862 million compared to EUR -0.142 million in 2020 due to the increased depreciation of the Company's growing proprietary portfolio of power plants.

The Company recorded a net loss of EUR -6.313 million compared to EUR -8.693 million in 2020, while the Total Comprehensive Income amounted to a solid EUR 2.427 million compared to EUR 2.084 million a year ago.

Equity increased by 29.3% compared to the end of 2020 and amounted to EUR 51.830 million at the end of 2021. The adjusted equity ratio remained stable at 28.8% (versus 28.9% at the end of 2020).

1.3 Award "Best Issuer Green SME Bonds 2021" by Bond Magazine

We are extremely honoured to be among the winners of the Bond Magazine Awards 2021, having been awarded the Best Issuer of Green SME Bonds. It is a recognition of our dedicated and transparent business practices and our commitment to Sustainability.

1.4 Photon Energy considers switching Hungarian PV portfolio to merchant electricity sales

The Company is considering temporarily switching 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. 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.

1.5 Reporting on Photon Energy's project pipeline

Photon Energy is currently developing PV projects in Australia (300.0 MWp), Hungary (95.2 MWp), Romania (225.5 MWp) and Poland (169.3 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 2022

Project name	Capacity	Revenue	Prod. 2022 January	Proj. 2021 January	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in 2022	kWh	kWh	%	kWh	kWh	%	%
Komorovice	2,354	CZK 14,149+4,1671	50,378	59,040	-14.7%	50,378	59,040	-14.7%	87.4%
Zvíkov I	2,031	CZK 14,149+4,3781	69,458	70,255	-1.1%	69,458	70,255	-1.1%	43.1%
Dolní Dvořiště	1,645	CZK 14,149+4,4861	45,003	44,920	0.2%	45,003	44,920	0.2%	70.4%
Svatoslav	1,231	CZK 14,149+4,4651	30,886	27,852	10.9%	30,886	27,852	10.9%	27.5%
Slavkov	1,159	CZK 14,149+4,6581	45,099	34,409	31.1%	45,099	34,409	31.1%	35.0%
Mostkovice SPV 1	210	CZK 14,149+4,6861	7,866	5,875	33.9%	7,866	5,875	33.9%	66.4%
Mostkovice SPV 3	926	CZK 15,295+4,7001	28,881	21,912	31.8%	28,881	21,912	31.8%	53.3%
Zdice I	1,499	CZK 14,149+4,3471	43,224	47,279	-8.6%	43,224	47,279	-8.6%	-1.5%
Zdice II	1,499	CZK 14,149+4,3471	44,814	48,473	-7.5%	44,814	48,473	-7.5%	-1.6%
Radvanice	2,305	CZK 14,149+4,7611	78,355	58,736	33.4%	78,355	58,736	33.4%	76.8%
Břeclav rooftop	137	CZK 14,149+4,6071	6,304	4,473	40.9%	6,304	4,473	40.9%	31.3%
Total Czech PP	14,996		450,268	423,225	6.4%	450,268	423,225	6.4%	40.0%
Babiná II	999	EUR 270.98	36,553	24,352	50.1%	36,553	24,352	50.1%	62.9%
Babina III	999	EUR 270.79	36,351	25,458	42.8%	36,351	25,458	42.8%	54.2%
Prša I.	999	EUR 270.32	40,979	30,340	35.1%	40,979	30,340	35.1%	63.2%
Blatna	700	EUR 272.50	22,416	16,966	32.1%	22,416	16,966	32.1%	29.3%
Mokra Luka 1	963	EUR 257.73	64,280	42,446	51.4%	64,280	42,446	51.4%	87.5%
Mokra Luka 2	963	EUR 257.05	68,760	46,405	48.2%	68,760	46,405	48.2%	88.5%
Jovice 1	979	EUR 262.57	33,449	18,182	84.0%	33,449	18,182	84.0%	103.2%
Jovice 2	979	EUR 262.80	32,620	18,040	80.8%	32,620	18,040	80.8%	102.8%
Brestovec	850	EUR 256.92	37,105	28,148	31.8%	37,105	28,148	31.8%	121.9%
Polianka	999	EUR 261.31	30,351	22,480	35.0%	30,351	22,480	35.0%	129.7%
Myjava	999	EUR 258.92	42,906	26,161	64.0%	42,906	26,161	64.0%	157.2%
Total Slovak PP	10,429		445,770	298,977	49.1%	445,770	298,977	49.1%	87.0%
Tiszakécske 1	689	HUF 35,540	38,986	29,618	31.6%	38,986	29,618	31.6%	42.0%
Tiszakécske 2	689	HUF 35,540	40,131	30,569	31.3%	40,131	30,569	31.3%	43.1%
Tiszakécske 3	689	HUF 35,540	33,586	27,073	24.1%	33,586	27,073	24.1%	39.2%
Tiszakécske 4	689	HUF 35,540	40,831	30,569	33.6%	40,831	30,569	33.6%	43.7%
Tiszakécske 5	689	HUF 35,540	39,329	29,618	32.8%	39,329	29,618	32.8%	45.0%
Tiszakécske 6	689	HUF 35,540	39,709	30,569	29.9%	39,709	30,569	29.9%	42.5%
Tiszakécske 7	689	HUF 35,540	40,109	29,550	35.7%	40,109	29,550	35.7%	43.2%
Tiszakécske 8	689	HUF 35,540	38,365	28,875	32.9%	38,365	28,875	32.9%	41.9%
Almásfüzitő 1	695	HUF 35,540	30,274	29,298	3.3%	30,274	29,298	3.3%	32.6%
Almásfüzitő 2	695	HUF 35,540	28,865	29,222	-1.2%	28,865	29,222	-1.2%	31.1%
Almásfüzitő 3	695	HUF 35,540	32,643	28,683	13.8%	32,643	28,683	13.8%	36.4%
Almásfüzitő 4	695	HUF 35,540	30,116	29,520	2.0%	30,116	29,520	2.0%	33.2%
Almásfüzitő 5	695	HUF 35,540	34,915	28,777	21.3%	34,915	28,777	21.3%	37.1%
Almásfüzitő 6	660	HUF 35,540	33,060	27,719	19.3%	33,060	27,719	19.3%	36.1%
Almásfüzitő 7	691	HUF 35,540	31,845	28,567	11.5%	31,845	28,567	11.5%	34.8%
Almásfüzitő 8	668	HUF 35,540	30,032	28,262	6.3%	30,032	28,262	6.3%	32.8%
Nagyecsed 1	689	HUF 35,540	29,498	27,820	6.0%	29,498	27,820	6.0%	42.5%
Nagyecsed 2	689	HUF 35,540	27,151	27,820	-2.4%	27,151	27,820	-2.4%	32.6%
Nagyecsed 3	689	HUF 35,540	28,788	27,494	4.7%	28,788	27,494	4.7%	39.2%
Fertod I	528	HUF 35,540	26,885	20,999	28.0%	26,885	20,999	28.0%	47.7%
Fertod II No 2	699	HUF 35,540	41,102	28,607	43.7%	41,102	28,607	43.7%	55.7%
Fertod II No 3	699	HUF 35,540	41,198	28,607	44.0%	41,198	28,607	44.0%	56.3%
Fertod II No 4	699	HUF 35,540	41,044	28,607	43.5%	41,044	28,607	43.5%	49.8%

Project name	Capacity	Revenue	Prod. 2022 January	Proj. 2022 January	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in 2022	kWh	kWh	%	kWh	kWh	%	%
Fertod II No 5	691	HUF 35,540	40,466	30,366	33.3%	40,466	30,366	33.3%	55.7%
Fertod II No 6	699	HUF 35,540	40,718	28,607	42.3%	40,718	28,607	42.3%	55.6%
Kunszentmárton I No 1	697	HUF 35,540	42,073	30,642	37.3%	42,073	30,642	37.3%	35.4%
Kunszentmárton I No 2	697	HUF 35,540	38,926	30,676	26.9%	38,926	30,676	26.9%	33.5%
Kunszentmárton II No 1	693	HUF 35,540	40,686	24,775	64.2%	40,686	24,775	64.2%	25.4%
Kunszentmárton II No 2	693	HUF 35,540	39,934	24,972	59.9%	39,934	24,972	59.9%	24.9%
Taszár 1	701	HUF 35,540	49,300	34,702	42.1%	49,300	34,702	42.1%	42.3%
Taszár 2	701	HUF 35,540	49,663	34,702	43.1%	49,663	34,702	43.1%	42.2%
Taszár 3	701	HUF 35,540	49,359	34,702	42.2%	49,359	34,702	42.2%	41.8%
Monor 1	688	HUF 35,540	41,824	27,690	51.0%	41,824	27,690	51.0%	44.5%
Monor 2	696	HUF 35,540	38,388	27,968	37.3%	38,388	27,968	37.3%	32.2%
Monor 3	696	HUF 35,540	41,117	27,968	47.0%	41,117	27,968	47.0%	51.1%
Monor 4	696	HUF 35,540	40,769	27,968	45.8%	40,769	27,968	45.8%	43.9%
Monor 5	688	HUF 35,540	41,843	27,266	53.5%	41,843	27,266	53.5%	43.5%
Monor 6	696	HUF 35,540	41,724	27,968	49.2%	41,724	27,968	49.2%	43.4%
Monor 7	696	HUF 35,540	40,672	27,968	45.4%	40,672	27,968	45.4%	42.2%
Monor 8	696	HUF 35,540	42,038	27,968	50.3%	42,038	27,968	50.3%	49.4%
Tata 1	672	HUF 35,540	30,036	24,650	21.8%	30,036	24,650	21.8%	37.8%
Tata 2	676	HUF 35,540	32,427	29,057	11.6%	32,427	29,057	11.6%	37.3%
Tata 3	667	HUF 35,540	32,519	26,788	21.4%	32,519	26,788	21.4%	40.0%
Tata 4	672	HUF 35,540	30,449	25,676	18.6%	30,449	25,676	18.6%	35.6%
Tata 5	672	HUF 35,540	30,801	25,820	19.3%	30,801	25,820	19.3%	39.8%
Tata 6	672	HUF 35,540	30,127	25,165	19.7%	30,127	25,165	19.7%	39.7%
Tata 7	672	HUF 35,540	30,054	24,680	21.8%	30,054	24,680	21.8%	40.1%
Tata 8	672	HUF 35,540	31,192	25,345	23.1%	31,192	25,345	23.1%	39.9%
Malyi 1	695	HUF 35,540	37,056	25,641	44.5%	37,056	25,641	44.5%	43.0%
Malyi 2	695	HUF 35,540	38,133	25,744	48.1%	38,133	25,744	48.1%	43.3%
Malyi 3	695	HUF 35,540	38,339	25,744	48.9%	38,339	25,744	48.9%	44.2%
Puspokladány 1	1,406	HUF 35,540	66,395	44,381	49.6%	66,395	44,381	49.6%	38.8%
Puspokladány 2	1,420	HUF 35,540	68,477	40,167	70.5%	68,477	40,167	70.5%	40.5%
Puspokladány 3	1,420	HUF 35,540	65,114	38,777	67.9%	65,114	38,777	67.9%	38.7%
Puspokladány 4	1,406	HUF 35,540	67,253	44,111	52.5%	67,253	44,111	52.5%	41.9%
Puspokladány 5	1,420	HUF 35,540	68,006	40,028	69.9%	68,006	40,028	69.9%	39.2%
Puspokladány 6	1,394	HUF 35,540	64,673	42,156	53.4%	64,673	42,156	53.4%	38.7%
Puspokladány 7	1,406	HUF 35,540	67,171	44,078	52.4%	67,171	44,078	52.4%	51.9%
Puspokladány 8	1,420	HUF 35,540	64,544	38,952	65.7%	64,544	38,952	65.7%	37.6%
Puspokladány 9	1,406	HUF 35,540	67,272	44,045	52.7%	67,272	44,045	52.7%	42.3%
Puspokladány 10	1,420	HUF 35,540	64,606	38,725	66.8%	64,606	38,725	66.8%	38.8%
Tolna	1,358	HUF 75,8802	66,151	63,481	4.2%	66,151	63,481	4.2%	na
Total Hungarian PP	50,456		2,608,752	1,916,564	36.1%	2,608,752	1,916,564	36.1%	44.6%
Symonston	144	AUD 301.60	17,600	22,235	-20.8%	17,600	22,235	-20.8%	-13.9%
Leeton	7,261	AUD 69+46 3	1,414,170	1,541,255	-8.2%	1,414,170	1,541,255	-8.2%	na
Fivebough	7,261	AUD 68+46 3	1,408,360	1,531,305	-8.0%	1,408,360	1,531,305	-8.0%	na
Total Australian PP	14,744		2,840,130	3,094,795	-8.2%	2,840,130	3,094,795	-8.2%	nm
Total	90,547		6,344,920	5,733,561	10.7%	6,344,920	5,733,561	10.7%	166.1%

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

² Average realized electricity price during the reporting period in Hungary.

³ Average 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

Chart 2. Generation results versus forecast between 1 January 2019 and 31 December 2022

Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Actual generation Generation forecast

Chart 3. Specific Performance Ratio between 1 January 2019 and 31 January 2022

Specific Performance Ratio is a measure of efficiency which shows the amount of kWh generated per 1 kWp of installed capacity and enables the simple comparison of year-on-year results and seasonal fluctuations during the year.

.

The Company reports 6.3 GWh of electricity produced in January 2022 compared to 2.4 GWh one year ago (+166.1%), 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 2,956 tonnes of CO² emissions in January 2022.

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 In January the proprietary portfolio outperformed the audits by 10.7%.

Our Czech, Slovak, and Hungarian portfolios exceeded energy forecasts by 6.4%, 49.1% and 36.1%, respectively, while our Australian portfolio was short of estimates by 8.2%.

The specific performance ratio of the proprietary portfolio (SPR) reached 70.1 kWh/kWp compared to 31.9 kWh/kWp one year ago (+119.4% year-on year).

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 (95.2 MWp), Romania (225.5 MWp) and Poland (169.3 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	68.0	23.1	2.7	-	1.4	95.2
Romania	33.8	98.5	93.2	-	-	225.5
Poland	145.2	24.1	-	-	-	169.3
Total in MWp	247.0	445.7	95.9	-	1.4	790.0

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

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

Photon Energy N.V. Monthly Report for January 2022

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 (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	Undis closed	2	All options open	100%	300.0	All options open	Secured	Ongoing	Ongoing	Q4 2023
Hungary	Tolna 1a	5	Own port folio	100%	1.4	Merchant/PPA	Secured	Secured	Secured	Under Construc tion
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

Australia

During the reporting period, Photon Energy had one large scale solar farms 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.
  • Photon Energy has commenced the permitting and grid-connection processes and expects to reach the ready-to-build stage in Q4 2023.

RayGen recently closed its Series C capital raise for AUD 55 million where Photon Energy participated alongside AGL Energy, Schlumberger New Energy, Chevron Technology Ventures, Equinor Ventures and other investors. RayGen is currently building a 4 MW / 50 MWh solar energy-plus-storage plant in Carwarp, Victoria, Australia due for completion in mid-2022.

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

► Tolna (27.3 MWp in development): the twelve projects with a total planned installed DC capacity of 27.3 MWp are in the Tolna region in the south of Hungary, where a first 1.4 MWp power plant was built and commissioned in December 2021(see details below).

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 ten 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.

On 9 December 2021, we have completed and grid-connected the first photovoltaic power plant with a capacity of 1.4 MWp near the municipality of Tolna. This latest addition expands the Company's portfolio of proprietary power plants in Hungary to a total of 62, with a combined capacity of 50.5 MWp. Globally, the Company now owns and operates 87 power plants with a combined capacity of 90.5 MWp.

The new power plant represents the first European utilityscale PV power plant in Photon Energy Group's IPP portfolio that the Company will operate without a support scheme. The total annual production of the power plant is expected to be around 2.1 GWh, which corresponds to expected annual revenues of EUR 420,000 based on current forward prices for electricity base load in Hungary in 2022. Given the power plant's electricity production profile, there is potential for even higher revenues in 2022.

The new power plant 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 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.

Three other projects have entered advanced development after securing the binding extraction and construction permits. Construction started for one of them.

The revenue model will also be the direct sale of electricity through a trader on the Hungarian electricity market for the time being. The option to still enter 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, remains in place. 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.

Now the team has solidified grid capacity, land, and a commercial structure, the projects will continue to take shape as they move towards construction and realization.

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 31 January 2022 the Company's shares (ISIN NL0010391108) closed at a price of PLN 6.95 (-2.8% MoM), corresponding to a price to book ratio of 1.64. The monthly trading volume amounted to 246,040 shares (vs. an average monthly volume of 572,491 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 Q1 2020, Q2 2021,Q3 2021 and Q4 2021.

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 31 January 2022 the share price (ISIN NL0010391108) closed at a level of CZK 39.00 (+2.1% MoM), corresponding to a price to book ratio of 1.74. The Company reports a monthly trading volume of 235,981 shares, compared to an average monthly trading volume of 255,504 over the past twelve months.

4.3 Quotation Board of the Frankfurt stock exchange

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.

On 31 January 2022, the share price (FSX: A1T9KW) closed at a level of EUR 1.51 (unchanged compared to last month), corresponding to a price to book ratio of 1.64.

The Company reports a monthly trading volume of 56,180 shares, compared to an average monthly trading volume of 39,314 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.

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 Group has. The total outstanding bond volume amounts to EUR 23.719 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

EUR Bond 2017/22 trading performance to date

In the trading period from 25 October 2017 until 31 January 2022, the trading volume amounted to EUR 54.051 million (nominal value, including the volume traded in Berlin, Munich & Stuttgart) with an opening price of 100.00 and a closing price of 101.60 in Frankfurt. During this period the average daily turnover amounted to EUR 50,094.

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

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.

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 January 2022

In January 2022 the trading volume amounted to EUR 175,000 with an opening price of 101.00 and a closing price of 101.60 in Frankfurt. The average daily turnover amounted to EUR 8,333.

Chart 9. MIN, MAX and closing monthly prices

5.2 Green EUR Bond 2021/27 trading performance

Green EUR Bond 2021/27 trading performance to date

In the trading period from 17 November 2021 until 31 January 2022, the trading volume amounted to EUR 7.577 million (nominal value, including the volume traded in Berlin, Munich & Stuttgart) with an opening price of 100.00 and a closing price of 100.85 in Frankfurt. During this period the average daily turnover amounted to EUR 118,391.

5.3 CZK Bond 2016/23 trading performance in Prague

In the trading period from 12 December 2016 until 31 January 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 January 2022

In January 2022 the trading volume amounted to EUR 1,157,000 with an opening price of 102.00 and a closing price of 100.85 in Frankfurt. The average daily turnover amounted to EUR 55,095.

6. Summary of all information published by the Issuer as current reports for the period covered by the report

In the period covered by this report the following current report has been published in the EBI (Electronic Database Information) system of the Warsaw Stock Exchange during or after the reporting period.

► None

In the period covered by this report the following current reports have been published in the ESPI (Electronic Information Transmission System) system of the Warsaw Stock Exchange:

• ► ESPI report 1 13.01.2022 Monthly report for December 2021.
• ► ESPI report 2 31.01.2022 Change in substantial blocks of shares.

After the reporting period, the following reports have been published in the ESPI (Electronic Information Transmission System) system of the Warsaw Stock Exchange:

• ► ESPI report 3 10.02.2022 Quarterly report for Q4 2021.
• ► ESPI report 4 14.02.2022 Photon Energy considers switching Hungarian PV portfolio to merchant electricity sales.

7. Investors' calendar

• ► 14 March 2022: Monthly report for February 2022
• ► 13 April 2022: Monthly report for March 2022
• ► 11 May 2022: Entity and consolidated quarterly reports for Q1 2022
• ► 12 May 2022: Online presentation of Photon Energy Group's Q1 2022 results
• ► 13 May 2022: Monthly report for April 2022
• ► 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

8. 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, 15 February 2022

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