Photon Energy N.V.

Quarterly Report • Oct 14, 2021

Photon Energy N.V.

Monthly Report for September 2021

For the period from 1 to 30 September 2021

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 82.3 GWh of electricity produced YTD compared to 62.3 GWh one year ago (+32.2%), propelled by the addition of new Hungarian power plants over the past year (14.1 MWp added since September 2020) 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 33,544 tonnes of CO² emissions year-to-date.

In September the proprietary portfolio outperformed the audits by 5.6%. Year-to-date the overall performance of the power plants in Photon Energy's portfolio remains in line with forecasts (-0.1%).

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

1.2 Update on the Hybrid Renewable Energy Project on Lord Howe Island

The Company designed and built a hybrid renewable energy project for the Lord Howe Island Board, responsible for the care, control and management of the island, a UNESCO World Heritage Site, is located in the Tasman Sea, 700 km north-east of Sydney. The ground-mounted solar PV and Powerpack system was specially designed for a remote location, and is integrated with the local microgrid and diesel generators, which previously formed the main source of power for the island community. In the long run the system was scaled to reduce diesel consumption by at least two thirds.

The system has now been supplying clean electricity to the island community for over six months, including stretches of up to five consecutive days and nights in August without any additional diesel-generated power. This is a clear demonstration of the reliability of solar PV and battery technology, even during the less sunny winter months. Real-time system production information is available online at:

http://photonscada.com/data/perspective/client/LHI.

The system is comprised of 3,240 photovoltaic modules with a combined capacity of 1.328 MWp connected to a 3.712 MWh Tesla Powerpack controlled by a Tesla Microgrid Controller. Through ARENA, the federal government provided AUD 4.5 million towards this AUD 11.1 million project. The Lord Howe Island Board secured a NSW Government loan of AUD 5.9 million, and has provided the balance of funds from its own capital.

1.3 Photon Energy – Rencraft consortium commissions 950 kWp PV power plant in Poland

The Company - as part of a RenCraft-led consortium - delivered a 0.95 MWp PV power plant to its client Miejskie Wodociągi i Kanalizacja Sp. z o.o., an organisation responsible for the care, control and management of a wastewater treatment facility in Koszalin, Poland. The PLN 3.36 milion (EUR 0.73 million) project is helping the municipality to reduce the growing costs of energy from the grid.

The Company was contracted to design and build the PV system and will also provide maintenance services during the warranty period of 60 months from the commissioning date.

This project represents the fourth collaboration between Photon Energy and RenCraft. The first installation was constructed in 2012 to power a wastewater treatment plant and a water supply company in Ruda Śląska. With an installed capacity of 311 kWp, it was the largest rooftop PV plant in Poland at the time.

1.4 Photon Energy Group Receives Prospectus Approval for Its First Green Bond

After the reporting period, on 12 October, the Company received approval from the Commission de Surveillance du Secteur Financier (CSSF) of a prospectus prepared in connection with the public offer of its first Green Bond 2021/2027 (ISIN: DE000A3KWKY4) with a volume of up to EUR 50,000,000 due in November 2027. The 6-year Bond has a denomination of EUR 1,000 and offers an attractive 6.50% annual coupon with quarterly payments.

A public offer of the Bond will take place in Germany, Austria and Luxembourg through either the Subscription Box of the Frankfurt Stock Exchange or a Subscription Form available directly through the Company's website. Additionally, a private placement addressed to qualified investors in certain European jurisdictions will be carried out by global co-ordinator Bankhaus Scheich Wertpapierspezialist AG. The public offer will begin on 2 November and finish on 17 November 2021.

As part of the offering process, the Company invites holders of the outstanding 7.75% EUR Bond 2017/2022 to exchange their current bonds at a 1:1 ratio for the new 6.50% Green EUR Bond 2021/2027. The exchange offer includes an attractive incentive in the amount of EUR 20 per bond – an additional 2.00% exchange bonus. The exchange period commences on 18 October 2021 and ends on 12 November 2021. Holders of the 7.75% EUR Bond 2017/2022 who wish to exchange their bonds should contact their depositary institution, who will provide them with the necessary documentation. The Company has published a list of FAQs for current and new investors at photonenergy.com/greenbond2021, where detailed information and the approved prospectus are also available.

Based on Photon Energy Group's proven track record of coupon payments and the sound liquidity of the outstanding bond, the new Green EUR Bond 2021/2027 presents an opportunity to lock into another attractive 6-year coupon. It will also allow investors to contribute to the development of sustainable, climate-friendly renewable energy projects.

The commencement of trading is scheduled for 23 November 2021 on the Open Market of the Frankfurt Stock Exchange.

Bankhaus Scheich Wertpapierspezialist AG, Frankfurt am Main was appointed as Sole Global Coordinator for the private placement of the corporate green bond.

1.5 Reporting on Photon Energy's project pipeline

Photon Energy is currently developing PV projects in Australia (160.0 MWp), Hungary (96.5 MWp), Romania (217.6 MWp) and Poland (122.1 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 September 2021

Project name	Capacity	Feed-in Tariff/LGC	Prod. 2021 September	Proj. 2021 September	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in 2021	kWh	kWh	%	kWh	kWh	%	%
Komorovice	2,354	CZK 15,117	247,270	248,615	-0.5%	2,051,781	2,217,399	-7.5%	-10.4%
Zvíkov I	2,031	CZK 15,117	230,205	226,514	1.6%	1,904,580	2,030,284	-6.2%	-10.0%
Dolní Dvořiště	1,645	CZK 15,117	165,925	164,025	1.2%	1,420,364	1,474,011	-3.6%	-6.0%
Svatoslav	1,231	CZK 15,117	119,220	120,290	-0.9%	1,004,906	1,078,498	-6.8%	-8.7%
Slavkov	1,159	CZK 15,117	135,565	128,412	5.6%	1,146,887	1,179,958	-2.8%	-5.4%
Mostkovice SPV 1	210	CZK 15,117	21,850	20,727	5.4%	186,186	195,461	-4.7%	-6.2%
Mostkovice SPV 3	926	CZK 16,240	102,257	95,197	7.4%	849,706	871,731	-2.5%	-4.5%
Zdice I	1,499	CZK 15,117	160,146	160,629	-0.3%	1,407,534	1,488,365	-5.4%	-9.2%
Zdice II	1,499	CZK 15,117	165,090	153,470	7.6%	1,440,475	1,499,686	-3.9%	-8.6%
Radvanice	2,305	CZK 15,117	262,826	238,535	10.2%	2,126,808	2,224,491	-4.4%	-6.2%
Břeclav rooftop	137	CZK 15,117	15,300	15,159	0.9%	135,147	134,843	0.2%	-7.1%
Total Czech PP	14,996		1,625,654	1,571,573	3.4%	13,674,375	14,394,727	-5.0%	-8.0%
Babiná II	999	EUR 425.12	99,604	94,827	5.0%	859,493	866,300	-0.8%	-2.3%
Babina III	999	EUR 425.12	99,499	96,305	3.3%	873,349	877,277	-0.4%	-2.1%
Prša I.	999	EUR 425.12	108,197	105,376	2.7%	885,962	938,911	-5.6%	-3.8%
Blatna	700	EUR 425.12	67,994	69,984	-2.8%	636,163	643,081	-1.1%	-2.1%
Mokra Luka 1	963	EUR 382.61	123,492	114,631	7.7%	1,007,491	984,129	2.4%	-2.7%
Mokra Luka 2	963	EUR 382.61	125,785	117,395	7.1%	1,022,739	1,020,761	0.2%	-2.6%
Jovice 1	979	EUR 382.61	89,226	92,916	-4.0%	749,283	793,002	-5.5%	-6.0%
Jovice 2	979	EUR 382.61	88,206	92,082	-4.2%	744,156	784,358	-5.1%	-6.0%
Brestovec	850	EUR 382.61	102,997	101,873	1.1%	838,706	899,478	-6.8%	-10.9%
Polianka	999	EUR 382.61	99,753	96,781	3.1%	856,088	873,579	-2.0%	-4.1%
Myjava	999	EUR 382.61	113,107	108,601	4.1%	975,810	989,460	-1.4%	-6.1%
Total Slovak PP	10,429		1,117,860	1,090,771	2.5%	9,449,240	9,670,335	-2.3%	-4.5%
Tiszakécske 1	689	HUF 34,140	82,497	75,406	9.4%	744,149	729,038	2.1%	-3.3%
Tiszakécske 2	689	HUF 34,140	82,578	75,526	9.3%	746,233	732,070	1.9%	-3.4%
Tiszakécske 3	689	HUF 34,140	80,652	74,233	8.6%	727,238	717,996	1.3%	-3.6%
Tiszakécske 4	689	HUF 34,140	82,784	75,526	9.6%	748,916	732,070	2.3%	-3.2%
Tiszakécske 5	689	HUF 34,140	82,397	75,406	9.3%	702,228	729,038	-3.7%	-7.6%
Tiszakécske 6	689	HUF 34,140	82,367	75,526	9.1%	745,527	732,070	1.8%	-3.3%
Tiszakécske 7	689	HUF 34,140	82,433	75,378	9.4%	746,235	728,689	2.4%	-3.1%
Tiszakécske 8	689	HUF 34,140	81,638	75,285	8.4%	740,773	727,027	1.9%	-3.2%
Almásfüzitő 1	695	HUF 34,140	76,145	77,482	-1.7%	726,633	725,792	0.1%	-3.9%
Almásfüzitő 2	695	HUF 34,140	80,718	77,445	4.2%	717,459	725,383	-1.1%	-3.0%
Almásfüzitő 3	695	HUF 34,140	80,254	77,305	3.8%	714,262	722,959	-1.2%	-1.7%
Almásfüzitő 4	695	HUF 34,140	83,392	77,592	7.5%	738,647	727,061	1.6%	-3.0%
Almásfüzitő 5	695	HUF 34,140	83,626	77,352	8.1%	746,209	723,745	3.1%	-2.9%
Almásfüzitő 6	660	HUF 34,140	83,214	74,016	12.4%	742,572	696,132	6.7%	-2.7%
Almásfüzitő 7	691	HUF 34,140	83,270	76,866	8.3%	741,260	719,621	3.0%	-2.9%
Almásfüzitő 8	668	HUF 34,140	83,819	74,894	11.9%	744,927	703,949	5.8%	-2.8%
Nagyecsed 1	689	HUF 34,140	77,689	76,311	1.8%	729,134	714,086	2.1%	-3.3%
Nagyecsed 2	689	HUF 34,140	77,205	76,311	1.2%	730,604	714,086	2.3%	-2.9%
Nagyecsed 3	689	HUF 34,140	77,566	76,459	1.4%	732,188	714,913	2.4%	-3.5%
Fertod I	528	HUF 34,140	66,236	55,806	18.7%	580,285	533,373	8.8%	-5.5%
Fertod II No 2	699	HUF 34,140	88,841	76,718	15.8%	746,228	725,702	2.8%	-5.0%
Fertod II No 3	699	HUF 34,140	88,897	76,718	15.9%	759,429	725,702	4.6%	-3.4%
Fertod II No 4	699	HUF 34,140	88,693	76,718	15.6%	752,740	725,702	3.7%	-3.9%

Project name	Capacity	Feed-in-Tariff/LGC	Prod. 2021 September	Proj. 2021 September	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in 2021	kWh	kWh	%	kWh	kWh	%	%
Fertod II No 5	691	HUF 34,140	88,221	76,903	14.7%	755,414	728,183	3.7%	-3.3%
Fertod II No 6	699	HUF 34,140	88,206	76,718	15.0%	754,280	725,702	3.9%	-3.1%
Kunszentmárton I No 1	697	HUF 34,140	85,635	80,469	6.4%	771,605	763,309	1.1%	-2.4%
Kunszentmárton I No 2	697	HUF 34,140	84,723	80,459	5.3%	768,908	763,368	0.7%	-2.6%
Kunszentmárton II No 1	693	HUF 34,140	87,393	80,740	8.2%	785,832	740,679	6.1%	84.7%
Kunszentmárton II No 2	693	HUF 34,140	88,027	80,641	9.2%	789,322	740,780	6.6%	60.6%
Taszár 1	701	HUF 34,140	85,451	79,564	7.4%	750,937	755,786	-0.6%	-4.7%
Taszár 2	701	HUF 34,140	85,412	79,564	7.3%	754,914	755,786	-0.1%	-5.0%
Taszár 3	701	HUF 34,140	85,366	79,564	7.3%	761,060	755,786	0.7%	-3.8%
Monor 1	688	HUF 34,140	84,578	78,087	8.3%	760,454	740,333	2.7%	-0.1%
Monor 2	696	HUF 34,140	84,167	76,985	9.3%	751,357	747,789	0.5%	-1.8%
Monor 3	696	HUF 34,140	84,708	76,985	10.0%	753,426	747,789	0.8%	-1.4%
Monor 4	696	HUF 34,140	84,554	76,985	9.8%	757,835	747,789	1.3%	-1.6%
Monor 5	688	HUF 34,140	84,515	77,541	9.0%	757,704	737,497	2.7%	-2.0%
Monor 6	696	HUF 34,140	84,295	76,985	9.5%	756,627	747,789	1.2%	-2.2%
Monor 7	696	HUF 34,140	84,012	76,985	9.1%	758,071	747,789	1.4%	-3.3%
Monor 8	696	HUF 34,140	84,863	76,985	10.2%	756,629	747,789	1.2%	-2.0%
Tata 1	672	HUF 34,140	88,267	79,994	10.3%	804,124	821,432	-2.1%	5.6%
Tata 2	676	HUF 34,140	79,064	73,794	7.1%	700,836	721,575	-2.9%	6.9%
Tata 3	667	HUF 34,140	79,335	72,368	9.6%	701,335	706,977	-0.8%	3.8%
Tata 4	672	HUF 34,140	90,556	82,156	10.2%	815,682	840,435	-2.9%	6.2%
Tata 5	672	HUF 34,140	90,031	82,461	9.2%	769,736	843,153	-8.7%	-0.3%
Tata 6	672	HUF 34,140	88,375	80,985	9.1%	809,494	830,291	-2.5%	3.7%
Tata 7	672	HUF 34,140	87,945	80,050	9.9%	804,708	821,951	-2.1%	4.1%
Tata 8	672	HUF 34,140	89,458	81,401	9.9%	821,024	833,917	-1.5%	7.3%
Malyi 1	695	HUF 34,140	81,181	74,057	9.6%	725,100	720,990	0.6%	51.0%
Malyi 2	695	HUF 34,140	81,447	74,133	9.9%	727,970	721,806	0.9%	53.1%
Malyi 3	695	HUF 34,140	81,663	74,133	10.2%	728,149	721,806	0.9%	50.7%
Puspokladány 1	1,406	HUF 34,140	180,629	171,841	5.1%	1,737,336	1,727,153	0.6%	na
Puspokladány 2	1,420	HUF 34,140	185,570	166,519	11.4%	1,768,095	1,688,439	4.7%	na
Puspokladány 3	1,420	HUF 34,140	185,062	162,293	14.0%	1,749,674	1,651,807	5.9%	na
Puspokladány 4	1,406	HUF 34,140	180,576	170,661	5.8%	1,742,449	1,715,751	1.6%	na
Puspokladány 5	1,420	HUF 34,140	189,233	166,059	14.0%	1,783,448	1,685,533	5.8%	na
Puspokladány 6	1,394	HUF 34,140	182,120	168,365	8.2%	1,728,277	1,704,655	1.4%	na
Puspokladány 7	1,406	HUF 34,140	180,838	170,558	6.0%	1,741,728	1,714,950	1.6%	na
Puspokladány 8	1,420	HUF 34,140	184,469	162,800	13.3%	1,753,071	1,656,563	5.8%	na
Puspokladány 9	1,406	HUF 34,140	180,457	170,456	5.9%	1,680,154	1,714,158	-2.0%	na
Puspokladány 10	1,420	HUF 34,140	184,482	162,136	13.8%	1,751,557	1,650,594	6.1%	na
Total Hungarian PP	49,098		6,101,797	5,589,661	9.2%	55,592,200	54,614,092	1.8%	48.6%
Symonston	144	AUD 301.60	14,780	14,161	4.4%	115,933	116,706	-0.7%	5.7%
Leeton	7,300	AUD 24 + 41*	1,103,000	1,043,755	5.7%	1,715,720	1,714,802	0.1%	na
Fivebough	7,300	AUD 24 + 41*	1,103,000	1,166,140	-5.4%	1,754,570	1,883,695	-6.9%	na
Total Australian PP	14,744		2,220,780	2,224,056	-0.1%	3,586,223	3,715,204	-3.5%	nm
Total	89,267		11,066,091	10,476,060	5.6%	82,302,038	82,394,359	-0.1%	32.2%

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 2021 / YTD proj. in 2021) – 1

YTD YOY: (YTD Prod. in 2021 / YTD Prod. in 2020) – 1.

.

* Average electricity price during the reporting period + Large-scale Generation Certificate spot closing price at the end of the reporting period.

Chart 1.c Total production of Hungarian portfolio

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

Chart 2. Generation results versus forecast between 1 January 2017 and 30 September 2021

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 82.3 GWh of electricity produced YTD compared to 62.3 GWh one year ago (+32.2%), propelled by the addition of new Hungarian power plants over the past year (14.1 MWp added since September 2020) 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 33,544 tonnes of CO² emissions year-to-date.

In September the proprietary portfolio outperformed the audits by 5.6%. Year-to-date the overall performance of the power plants in Photon Energy's portfolio remains in line with forecasts (-0.1%).

Our Hungarian, Czech and Slovak portfolios exceeded energy forecasts by 9.2%, 3.4% and 2.5% respectively and our Australian portfolio was in line with estimates (-0.1%).

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, The specific performance ratio of the proprietary portfolio (SPR) reached 124.0 kWh/kWp compared to 119.5 kWh/kWp one year ago (+3.7% year-on year).

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 (160.0 MWp), Hungary (96.5 MWp), Romania (217.6 MWp) and Poland (122.1 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	-		160.0	-	-	160.0
Hungary	68.0	23.1	2.7	2.7	-	96.5
Romania	56.4	161.2	-	-	-	217.6
Poland	90.2	31.9	-	-	-	122.1
Total in MWp	214.6	216.2	162.7	2.7	-	596.2

*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 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	Maryvale	3	Developer	65%	160.0	Co-development	Secured	Ongoing	Secured	Q1 2022
Hungary	Tolna 1	4	Own portfolio	100%	2.7	Contract-for-difference for one project, all options open for the other one	Secured	Secured	Secured	Construc tion under preparation
Hungary	Tolna 1	3	Own portfolio	100%	2.7	All options open	Secured	Secured	Secured	Q4 2021 /Q1 2022
Hungary	Tolna 2	2	Own Portfolio	100%	23.2	All options open	Ongoing	Secured	Secured	Q3 2022

¹ Contr.-for-Diff stands for 'Contract for difference' and is a revenue model in form of electricity sales on the electricity spot market plus the compensation of the difference to a guaranteed Feed-in-Tariff.

Australia

As of the date of publishing this report, Photon Energy has one large scale solar farm under development in Maryvale, New South Wales ("NSW).

On 13 April, the Company announced an agreement to exchange project rights with its development partner Canadian Solar. As a result, Photon Energy will continue developing the 160 MWp Maryvale Solar Farm project independently, while further development of Gunning Solar Farm and Suntop 2 Solar Farm projects will be handled by Canadian Solar.

Until that date, these three projects were co-developed with Canadian Solar as part of an agreement concluded in 2018 (to date, two other projects, Suntop 1 with 189MW and Gunnedah with 146MW, have been successfully developed and sold in the scope of this agreement):

Under the terms of the agreement, Photon Energy has exchanged its 49% stake in the 220 MWp Gunning Solar Farm project and 25% stake in the 200 MWp Suntop2 Solar Farm project for Canadian Solar's stake in the Maryvale Solar Farm project. As part of the transaction, the Company now possesses a 65% stake and the original local co-development partner will continue its work on the project holding a 35% stake in the project.

Of the three projects, Maryvale is in the furthest stages of development. The Company expects to undertake preliminary design and grid connection studies followed by a Connection Agreement which is expected to be reached early next year.

Maryvale Solar Farm has development approval and is located in the NSW Central-West Orana Renewable Energy Zone, which is earmarked to unlock up to 3 GW of network capacity by the mid-2020s.

► Development status for Maryvale (160 MWp): Development Approval was granted on 4 December 2019. The grid connection options are still in progress with Essential Energy. We are currently preparing for Grid Protection Study (GPS) and it is expected that project development can be completed within Q1 2022.

Hungary

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

► Tolna (28.6 MWp): 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) project 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. 3 other projects have entered into advanced development after secured the binding extraction and construction permits. The local development team is now actively working on securing the connection cable consents including easements and final administration documents (Unified Small Power Plant License). Construction preparation started for two of the projects with a commissioning date expected in December 2021.

The revenue model will either take the form of a contractfor-difference based on METÁR licenses (for projects proving successful through an auction process in the future), a PPA, or the direct sale of electricity through a trader on the Hungarian electricity market. 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 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 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 (inter nal/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 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 issu ance 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 transmis sion 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 Operator (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 September 2021 the Company's shares (ISIN NL0010391108) closed at a price of PLN 7.65 (-8.9% MoM), corresponding to a price to book ratio of 1.82. The monthly trading volume amounted to 552,350 shares (vs. an average monthly volume of 670,807 YTD).

Chart 4. 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 Q3 2020, Q4 2020, Q1 2021, and Q2 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 5. 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 6. Total monthly volumes vs. daily closing stock prices

4.2 Main market of the Prague Stock Exchange

On 30 September 2021 the share price (ISIN NL0010391108) closed at a level of CZK 42.20 (-11.0% MoM), corresponding to a price to book ratio of 1.80. The Company reports a monthly trading volume of 419,302 shares, compared to an average monthly trading volume of 223,997 YTD.

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 September 2021 the share price (FSX: A1T9KW) closed at a level of EUR 1.66 (-9.0% MoM), corresponding to a price to book ratio of 1.81.

The Company reports a monthly trading volume of 20,700 shares, compared to an average monthly trading volume of 47,106 YTD.

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 has been subscribed to in full on

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 30 September 2021, the trading volume amounted to EUR 51.818 million (nominal value, including the volume traded in Berlin, Munich & Stuttgart) with an opening price of 100.00 and a closing price of 100.75 in Frankfurt. During this period the average daily turnover amounted to EUR 52,131.

Chart 7. The Company's EUR bond 2017/22 trading on the Frankfurt Stock Exchange in Germany

5.2 CZK Bond 2016/23 trading performance in Prague

In the trading period from 12 December 2016 until 30 September 2021, the trading volume amounted to CZK 37.320 million with a closing price of 100.00.

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.

7 September 2018, before the end of the public placement period originally set until 20 September 2018. 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 successfully increased the bond placement by EUR 7.5 million in 2019, and EUR 7.5 million in 2020 with all parameters unchanged. The total outstanding bond volume amounts to EUR 45.0 million as of the end of the reporting period.

EUR Bond 2017/22 trading performance in September 2021

In September 2021 the trading volume amounted to EUR 611,000 with an opening price of 102.80 and a closing price of 100.75 in Frankfurt. The average daily turnover amounted to EUR 27,773.

Chart 8. MIN, MAX and closing monthly prices

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 37 02.09.2021 Photon Energy Considers New Bond Issuance (title missing).
• ► ESPI report 38 02.09.2021 Photon Energy Considers New Bond Issuance (with title).
• ► ESPI report 39 14.09.2021 Monthly Report for August 2021.
• ► ESPI report 40 22.09.2021 Photon Energy-RenCraft Consortium Commissions 0.95 MWp PV Power Plant in Poland.
• ► ESPI report 41 29.09.2021 Effect of Regulatory Changes on Photon Energy's Power Plant Portfolio from 2022.

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 42 - 07.10.2021 - Photon Energy N.V. Will Issue a New 6 Year 6.50% Corporate Green Bond up to EUR 50 million.

7. Investors' calendar

• ► 18 October 2021: Commencement of the exchange offer addressed to the current holders of the outstanding EUR bond 2017/2022 (ISIN: DE000A19MFH4) for the Company's Green Bond 2021/2027 (ISIN: DE000A3KWKY4).
• ► 2 November 2021: Commencement of the public offer of the Green Bond 2021/2027 (ISIN: DE000A3KWKY4) in Germany, Austria and Luxembourg through either the Subscription Box of the Frankfurt Stock Exchange or a Subscription Form available directly through the Company's website: photonenergy.com/greenbond2021
• ► 10 November 2021: Entity and consolidated quarterly reports for Q3 2021
• ► 15 November 2021: Online presentation of Photon Energy Group's Q3 2021 results
• ► 15 November 2021: Monthly report for October 2021
• ► 22-24 November 2021: Deutsches Eigenkapitalforum in Frankfurt
• ► 14 December 2021: Monthly report for November 2021

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, 14 October 2021

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