Photon Energy N.V.

Regulatory Filings • Mar 11, 2021

Photon Energy N.V.

Monthly Report for February 2021

For the period from 1 to 28 February 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 6.7 GWh of electricity produced YTD compared to 5.4 GWh one year ago (+23.4%), propelled by the addition of new Hungarian power plants over the past year (23.0 MWp added since February 2020).

In February the overall performance of the power plants in Photon Energy's portfolio was slightly below energy forecasts. The average performance of all power plants in Photon Energy's portfolio came in approximately 5.5% below expectations. On a year-todate basis, the overall performance of the proprietary portfolio underperformed forecasts by 8.8%.

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

1.2 Update on the Romanian market

Romania committed to increasing its share of renewable energy sources to 30.7 % by 2030 and Photon Energy is ready to participate and contribute to the energy transition in the country. The Company was a partner of two major online events for the energy industry with the objective to position itself and build relationships within the Romanian renewable sector.

The first event, "Investments for the Energy Transition", was organized by Energynomics, the most complex communication platform for Romanian Energy Industry and included partners from the investment, finance, consulting as well as power generation sector.

The ZF Power Summit 2021, a two-day online event held by Ziarul Financiar newspaper, welcomed representatives from the European Commission, European Investment Bank, Romanian government and the energy industry.

During both events Photon Energy contributed with presentations and discussions concentrating on the challenges of investing in new solar power sources and an efficient maintenance of the existing ones.

1.3 Reporting on Photon Energy's project pipeline

Photon Energy is currently developing PV projects in Australia (594.6 MWp), Hungary (99.3 MWp), Romania (105.2 MWp) and Poland (26.2 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 February 2021

Project name	Capacity	Feed-in-Tariff	Prod. 2021 February	Proj. 2021 February	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in 2021	kWh	kWh	%	kWh	kWh	%	%
Komorovice	2,354	CZK 15,117	100,368	129,228	-22.3%	127,252	188,745	-32.6%	-30.8%
Zvíkov I	2,031	CZK 15,117	103,566	127,786	-19.0%	152,115	198,608	-23.4%	-25.3%
Dolní Dvořiště	1,645	CZK 15,117	87,036	81,635	6.6%	113,441	126,917	-10.6%	-20.1%
Svatoslav	1,231	CZK 15,117	38,794	56,026	-30.8%	63,027	84,102	-25.1%	-30.2%
Slavkov	1,159	CZK 15,117	58,205	66,960	-13.1%	91,601	101,646	-9.9%	-13.5%
Mostkovice SPV 1	210	CZK 15,117	8,078	10,467	-22.8%	12,805	16,390	-21.9%	-27.6%
Mostkovice SPV 3	926	CZK 16,240	39,728	46,210	-14.0%	58,568	68,298	-14.2%	-20.8%
Zdice I	1,499	CZK 15,117	68,987	87,306	-21.0%	112,871	134,967	-16.4%	-14.8%
Zdice II	1,499	CZK 15,117	76,645	88,230	-13.1%	122,176	137,094	-10.9%	-10.5%
Radvanice	2,305	CZK 15,117	79,145	116,191	-31.9%	123,463	175,401	-29.6%	-32.5%
Břeclav rooftop	137	CZK 15,117	5,764	7,933	-27.3%	10,564	12,443	-15.1%	-20.1%
Total Czech PP	14,996		666,316	817,973	-18.5%	987,882	1,244,611	-20.6%	-23.0%
Babiná II	999	EUR 425.12	38,286	40,555	-5.6%	60,729	65,103	-6.7%	-19.9%
Babina III	999	EUR 425.12	38,906	41,878	-7.1%	62,477	67,542	-7.5%	-20.6%
Prša I.	999	EUR 425.12	42,533	44,025	-3.4%	67,648	74,610	-9.3%	-12.4%
Blatna	700	EUR 425.12	26,589	30,833	-13.8%	43,926	47,936	-8.4%	-18.1%
Mokra Luka 1	963	EUR 382.61	60,721	62,267	-2.5%	95,012	105,055	-9.6%	-19.5%
Mokra Luka 2	963	EUR 382.61	64,749	64,255	0.8%	101,230	111,034	-8.8%	-17.9%
Jovice 1	979	EUR 382.61	30,493	40,424	-24.6%	46,950	58,752	-20.1%	-31.0%
Jovice 2	979	EUR 382.61	29,958	39,874	-24.9%	46,042	58,059	-20.7%	-31.8%
Brestovec	850	EUR 382.61	50,394	50,688	-0.6%	67,116	79,063	-15.1%	-20.4%
Polianka	999	EUR 382.61	30,776	39,776	-22.6%	43,989	62,437	-29.5%	-38.6%
Myjava	999	EUR 382.61	44,870	51,016	-12.0%	61,550	77,389	-20.5%	-31.4%
Total Slovak PP	10,429		458,275	505,591	-9.4%	696,670	806,979	-13.7%	-23.3%
Tiszakécske 1	689	HUF 34,140	44,185	45,781	-3.5%	71,644	75,638	-5.3%	-13.5%
Tiszakécske 2	689	HUF 34,140	44,814	46,925	-4.5%	72,856	77,741	-6.3%	-13.4%
Tiszakécske 3	689	HUF 34,140	41,675	43,491	-4.2%	65,800	70,782	-7.0%	-13.6%
Tiszakécske 4	689	HUF 34,140	45,153	46,925	-3.8%	73,575	77,741	-5.4%	-13.5%
Tiszakécske 5	689	HUF 34,140	41,304	45,781	-9.8%	68,429	75,638	-9.5%	-17.2%
Tiszakécske 6	689	HUF 34,140	44,513	46,925	-5.1%	72,375	77,741	-6.9%	-13.6%
Tiszakécske 7	689	HUF 34,140	44,681	45,744	-2.3%	72,687	75,532	-3.8%	-13.5%
Tiszakécske 8	689	HUF 34,140	43,962	45,524	-3.4%	71,008	74,632	-4.9%	-13.6%
Almásfüzitő 1	695	HUF 34,140	44,643	47,261	-5.5%	67,472	76,796	-12.1%	-8.4%
Almásfüzitő 2	695	HUF 34,140	43,172	47,201	-8.5%	65,198	76,658	-14.9%	-8.5%
Almásfüzitő 3	695	HUF 34,140	43,587	46,435	-6.1%	67,511	75,350	-10.4%	-11.1%
Almásfüzitő 4	695	HUF 34,140	44,636	47,489	-6.0%	67,238	77,248	-13.0%	-10.7%
Almásfüzitő 5	695	HUF 34,140	46,568	46,762	-0.4%	72,028	75,771	-4.9%	-10.8%
Almásfüzitő 6	660	HUF 34,140	46,169	44,966	2.7%	70,465	72,908	-3.4%	-10.5%
Almásfüzitő 7	691	HUF 34,140	45,777	46,447	-1.4%	69,405	75,245	-7.8%	-10.8%
Almásfüzitő 8	668	HUF 34,140	44,992	45,644	-1.4%	67,603	74,134	-8.8%	-10.4%
Nagyecsed 1	689	HUF 34,140	44,008	44,175	-0.4%	64,710	72,220	-10.4%	-19.0%
Nagyecsed 2	689	HUF 34,140	43,642	44,175	-1.2%	64,114	72,220	-11.2%	-19.0%
Nagyecsed 3	689	HUF 34,140	43,887	44,180	-0.7%	64,565	71,896	-10.2%	-19.3%
Fertod I	528	HUF 34,140	35,003	34,755	0.7%	53,201	55,923	-4.9%	-17.5%

Project name	Capacity	Feed-in-Tariff	Prod. 2021 February	Proj. 2021 February	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in 2021	kWh	kWh	%	kWh	kWh	%	%
Fertod II No 2	699	HUF 34,140	49,054	47,695	2.9%	75,460	76,532	-1.4%	-14.6%
Fertod II No 3	699	HUF 34,140	48,969	47,695	2.7%	75,319	76,532	-1.6%	-14.2%
Fertod II No 4	699	HUF 34,140	48,967	47,695	2.7%	76,366	76,532	-0.2%	-13.7%
Fertod II No 5	691	HUF 34,140	48,513	48,148	0.8%	74,495	78,759	-5.4%	-15.3%
Fertod II No 6	699	HUF 34,140	48,745	47,695	2.2%	74,911	76,532	-2.1%	-14.4%
Kunszentmárton I No 1	697	HUF 34,140	48,055	46,470	3.4%	79,137	77,359	2.3%	-11.3%
Kunszentmárton I No 2	697	HUF 34,140	47,509	46,489	2.2%	76,677	77,412	-0.9%	-11.6%
Kunszentmárton II No 1	693	HUF 34,140	49,203	37,313	31.9%	81,641	62,287	31.1%	na
Kunszentmárton II No 2	693	HUF 34,140	49,509	37,412	32.3%	81,473	62,586	30.2%	na
Taszár 1	701	HUF 34,140	56,739	51,026	11.2%	91,376	86,008	6.2%	-6.4%
Taszár 2	701	HUF 34,140	56,966	51,026	11.6%	91,902	86,008	6.9%	-6.8%
Taszár 3	701	HUF 34,140	56,972	51,026	11.7%	91,778	86,008	6.7%	-6.8%
Monor 1	688	HUF 34,140	51,369	44,709	14.9%	80,312	72,622	10.6%	-5.2%
Monor 2	696	HUF 34,140	51,238	47,011	9.0%	80,278	75,205	6.7%	-6.0%
Monor 3	696	HUF 34,140	50,539	47,011	7.5%	77,746	75,205	3.4%	-6.4%
Monor 4	696	HUF 34,140	51,210	47,011	8.9%	79,550	75,205	5.8%	-6.0%
Monor 5	688	HUF 34,140	51,234	46,319	10.6%	80,399	73,805	8.9%	-6.0%
Monor 6	696	HUF 34,140	51,297	47,011	9.1%	80,397	75,205	6.9%	-6.0%
Monor 7	696	HUF 34,140	51,148	47,011	8.8%	79,748	75,205	6.0%	-6.1%
Monor 8	696	HUF 34,140	50,903	47,011	8.3%	79,041	75,205	5.1%	-6.7%
Tata 1	672	HUF 34,140	42,616	41,736	2.1%	64,418	66,585	-3.3%	na
Tata 2	676	HUF 34,140	45,916	47,960	-4.3%	69,527	77,252	-10.0%	nm
Tata 3	667	HUF 34,140	45,518	46,273	-1.6%	68,747	73,278	-6.2%	nm
Tata 4	672	HUF 34,140	43,648	42,984	1.5%	66,103	68,867	-4.0%	na
Tata 5	672	HUF 34,140	43,325	43,197	0.3%	65,358	69,225	-5.6%	nm
Tata 6	672	HUF 34,140	42,635	42,283	0.8%	64,196	67,650	-5.1%	nm
Tata 7	672	HUF 34,140	42,422	41,769	1.6%	63,875	66,648	-4.2%	nm
Tata 8	672	HUF 34,140	43,498	42,517	2.3%	65,790	68,067	-3.3%	na
Malyi 1	695	HUF 34,140	37,240	43,016	-13.4%	63,145	68,864	-8.3%	na
Malyi 2	695	HUF 34,140	37,093	43,093	-13.9%	63,695	69,045	-7.7%	na
Malyi 3	695	HUF 34,140	37,215	43,093	-13.6%	63,806	69,045	-7.6%	na
Puspokladány 1	1,406	HUF 34,140	84,203	96,117	-12.4%	132,030	156,414	-15.6%	na
Puspokladány 2	1,420	HUF 34,140	85,160	91,640	-7.1%	133,893	148,156	-9.6%	na
Puspokladány 3	1,420	HUF 34,140	83,745	88,953	-5.9%	130,674	143,479	-8.9%	na
Puspokladány 4	1,406	HUF 34,140	84,867	95,321	-11.0%	132,278	155,220	-14.8%	na
Puspokladány 5	1,420	HUF 34,140	86,211	91,640	-5.9%	135,069	148,156	-8.8%	na
Puspokladány 6	1,394	HUF 34,140	81,809	93,630	-12.6%	128,435	152,136	-15.6%	na
Puspokladány 7	1,406	HUF 34,140	84,105	95,321	-11.8%	128,333	155,220	-17.3%	na
Puspokladány 8	1,420	HUF 34,140	83,745	89,451	-6.4%	130,643	144,275	-9.4%	na
Puspokladány 9	1,406	HUF 34,140	76,916	95,321	-19.3%	124,179	155,220	-20.0%	na
Puspokladány 10	1,420	HUF 34,140	83,345	88,953	-6.3%	129,878	143,479	-9.5%	na
Total Hungarian PP	49,098		3,189,742	3,243,635	-1.7%	4,993,959	5,268,301	-5.2%	55.1%
Symonston	144	AUD 301.60	16,713	18,238	-8.4%	37,161	40,652	-8.6%	12.4%
Total Australian PP	144		16,713	18,238	-8.4%	37,161	40,652	-8.6%	12.4%
Total	74,667		4,331,046	4,585,436	-5.5%	6,715,672	7,360,543	-8.8%	23.4%

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.

.

0 500 1,000 1,500 2,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Cumulative production in MWh January February

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 2016 and 28 February 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 6.7 GWh of electricity produced YTD compared to 5.4 GWh one year ago (+23.4%), propelled by the addition of new Hungarian power plants over the past year (23.0 MWp added since February 2020).

In February the overall performance of the power plants in Photon Energy's portfolio was slightly below energy forecasts. The average performance of all power plants came in approximately 5.5% below expectations. On a year-to-date basis, the overall performance of the portfolio underperformed forecasts by 8.8%.

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, Our Czech, Slovak and Hungarian portfolios performed on average below expectations by approximately 18.5%, 9.4% and 1.7%, respectively. Our Australian power plant was short of generation estimates by 8.4%.

The specific performance ratio of the proprietary portfolio (SPR) reached 58.0 kWh/kWp compared to 69.6 kWh/kWp one year ago (-16.6% 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 (594.6 MWp), Hungary (99.3 MWp), Romania (105.2 MWp) and Poland (26.2 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	-	200.0	380.0	-	14.6	594.6
Hungary	70.7	27.2	1.4	-	-	99.3
Romania	24.1	81.1	-	-	-	105.2
Poland	5.9	20.3	-	-	-	26.2
Total in MWp	100.8	328.6	381.4	-	14.6	825.4

*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 connection	Construction permit	Expected RTB
Australia	Leeton	5	Own portfolio	100%	7.3	Merchant	Secured	Secured	Secured	Commissioning process in
Australia	Fivebough	5	Own Portfolio	100%	7.3	Merchant	Secured	Secured	Secured	progress
Hungary	Tolna 1	3	Own portfolio	100%	1.4	Contract-for difference	Secured	Secured	Secured	Q3 2021
Hungary	Tolna 2	2	Own Portfolio	100%	27.2	All options open	Secured for some projects	Secured	Secured	Q3 2021
Australia	Gunning	3	Developer	49%	220	Co-development	Secured	Ongoing	Ongoing	Q3 2021
Australia	Maryvale	3	Developer	25%	160	& financing agreement with	Secured	Ongoing	Secured	Q3 2021
Australia	Suntop 2	2	Developer	25%	200	Canadian Solar	Ongoing	Ongoing	Ongoing	Q3 2021

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 five large scale solar farms at different stages of development in New South Wales ("NSW). The project pipeline is still among the largest pipelines of Solar projects in NSW representing a total planned capacity of 595 MWp.

Three of these projects are being 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):

• ► 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 2021.
• ► Gunning (220 MWp): The process of securing construction permit is ongoing. We have redefined and redesigned the project layout to include battery storage. This had an impact on the site assessment and hence feasibility studies and public consultations had to be postponed. In parallel we are in discussions with Transgrid regarding the grid connection specifications. GPS studies will follow.
• ► Suntop 2 (200 MWp): the construction permitting process is still underway. Feasibility studies and community consultations have been finalized and EIS were submitted to NSW DP&E in November 2019. We received the first comments and are providing additional information to complete the EIS. The grid connection application will start upon completion of EIS.

The current status of other projects developed by Photon Energy is summarized below:

► Leeton and Fivebough (Total capacity 14.6 MWp): In May 2020, Photon Energy announced the conclusion of an agreement with Infradebt for the project debt financing of the two PV power plants we are developing in Leeton, with a grid connection capacity of 4.95 MWp AC and an installed capacity of 7.3 MWp DC each.

Photon Energy Engineering Australia Pty Ltd. is acting as engineering, procurement and construction (EPC) contractor for both projects. After commissioning longterm O&M services will be provided by Photon Energy Operations Australia Pty Ltd.

The plants' bi-facial PV modules are mounted on singleaxis trackers and will supply the produced electricity to Essential Energy's distribution network as nonscheduled generators. The combined annual electricity production of both PV power plants is forecast to be 27.8 GWh, and will be sold on the National Electricity Market on a merchant basis, as will the Large Generation Certificates (LGCs) generated by the plants. No power purchase agreements (PPAs) have been entered into by Photon Energy.

These are the two largest projects to be added to Photon Energy's portfolio to date, and our first merchant projects providing competitive energy into the market. The experience we gain in operating the power plants will be used to maximise revenues in the energy market.

► Construction status: The project works are now completed and we are finalising the commissioning process. We intend to connect both plants and begin injection to the grid by the end of March 2021.

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.
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)

Glossary of terms	Definitions
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.

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.

The revenue model will either take the form of a contract-for-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.

The current project pipeline in Hungary consists of 15 projects with a total planned capacity of 99.3 MWp. Taking into account with our existing portfolio of 49.1 MWp operating PV power plants, we are well positioned to meet the Group's target for expansion of its portfolio in Hungary to up to 75 MWp until yearend 2021.

4. Enterprise value & Share price performance

4.1 Main market of the Warsaw Stock Exchange

On 28 February 2021 the Company's shares (ISIN NL0010391108) closed at a price of PLN 14.50 (-2.7% MoM), corresponding to a price to book ratio of 4.19. The monthly trading volume amounted to 162,362 shares (vs. an average monthly volume of 270,669 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 Q1 2020, Q2 2020, Q3 2020, and Q4 2020.

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 28 February 2021 the share price (ISIN NL0010391108) closed at a level of CZK 88.00 (-4.3% MoM), corresponding to a price to book ratio of 4.38x. The Company reports a monthly trading volume of 32,489 shares in February, compared to an average monthly trading volume of 59,920 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 28 February 2021 the share price (FSX: A1T9KW) closed at a level of EUR 3.18 (-2.5% MoM), corresponding to a price to book ratio of 4.15x.

The Company reports a monthly trading volume of 5,590 shares in February.

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 28 February 2021, the trading volume amounted to EUR 49.244 million (nominal value, including the volume traded in Berlin, Munich & Stuttgart) with an opening price of 100.00 and a closing price of 103.30 in Frankfurt. During this period the average daily turnover amounted to EUR 58,485.

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 28 February 2021, the trading volume amounted to CZK 15.420 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 February 2021

In February 2021 the trading volume amounted to EUR 293,000 with an opening price of 103.00 and a closing price of 103.30 in Frankfurt. The average daily turnover amounted to EUR 14,650.

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

No reports have been published in the EBI (Electronic Database Information) system of the Warsaw Stock Exchange during or after the reporting period.

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 6 11.02.2021 Quarterly report for Q4 2020.
• ► ESPI report 7 15.02.2021 Monthly report for January 2021.
• ► ESPI report 8 – 17.02. 2021 Change in substantial blocks of shares.
• ► ESPI report 9 19.02.2021 Insider trading notification.

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

► None.

7. Investors' calendar

• ► 14 April 2021: Monthly report for March 2021
• ► 11 May 2021: Entity and consolidated quarterly reports for Q1 2021
• ► 12 May 2021: Online presentation of Photon Energy Group's Q1 2021 results
• ► 13 May 2021: Monthly report for April 2021
• ► 17-19 May 2021: Frühjahrskonferenz (Spring Conference) 2021 Frankfurt/online
• ► 10 June 2021: Monthly report for May 2021
• ► 14 July 2021: Monthly report for June 2021
• ► 10 August 2021: Entity and consolidated quarterly reports for Q2 2021/H1 2021
• ► 12 August 2021: Online presentation of Photon Energy Group's Q2 2021/H1 2021 results
• ► 12 August 2021: Monthly report for July 2021
• ► 14 September 2021: Monthly report for August 2021
• ► 14 October 2021: Monthly report for September 2021
• ► 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 manager E-mail: ir@photonenergy.com

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

Amsterdam, 11 March 2021

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