First half year 2022

Interim report

Consolidated interim report for the six month period ended 30 June 2022 and the condensed consolidated and the condensed parent company's financial statements for the six month period ended 30 June 2022, prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union

First half year 2022 interim report
Contents

Ignitis Group – creating an energy smart world

Who we are

Ignitis Group is a leading utility and renewable energy group in the Baltic region.

Our core business is focused on operating electricity distribution Network and managing and developing Green Generation portfolio.

We also manage strategically important Flexible Generation assets and provide Customers & Solutions services, including the supply of electricity and natural gas, solar, e-mobility, improved energy efficiency and innovative energy solutions for households and businesses.

Networks

Resilient and efficient energy distribution networks enabling the energy transition.

Green Generation

Focused, sustainable and profitable growth.

Flexible Generation

Reliable and flexible power system.

Customers & Solutions

Innovative solutions for easier life and energy evolution.

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Overview ... 4
1.1 CEO's statement ... 5
1.2 Business highlights ... 8
1.3 Performance highlights ... 11
1.4 Outlook ... 13
1.5 Investor information ... 14
Business overview ... 16
2.1 Business profile ... 17
2.2 Market presence ... 18
2.3 Strategy and targets ... 19
2.4 Business environment ... 26
Results ... 29
3.1 Results H1 ... 30
3.2 Results by business segment ... 44
3.3 Results Q2 ... 52
3.4 Quarterly summary ... 54
Governance report ... 56
4.1 Governance framework ... 57
4.2 Supervisory Board and committees ... 59
4.3 Management Board ... 62
4.4 Risk and risk management ... 64
4.5 Information about the Group ... 67
ESG performance report ... 69
5.1 ESG highlights ... 70
5.2 EU Taxonomy-eligible KPIs ... 71
5.3 Overview of our ESG goals ... 72
5.4 Progress on our ESG goals ... 74
Financial statements ... 77
6.1 Consolidated financial statements ... 78
6.2 Parent company's financial statements ... 108
Further information ... 129
7.1 Material events of the parent company ... 130
7.2 Performance of the Group companies ... 132
7.3 Other statutory information ... 138
Glossary ... 139
Certification statement ... 142

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Overview

1.1 CEO's statement 5
1.2 Business highlights 8
1.3 Performance highlights 11
1.4 Outlook 13
1.5 Investor information 14

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1.1 CEO's statement

Highlights

Performance

Adjusted EBITDA grew by 38.8% to EUR 206.5 million compared to H1 2021. The increase was mainly driven by the Green Generation segment due to the launch of Pomerania WF in Poland and better results of our operating assets. Green Generation Adjusted EBITDA accounted for almost 60% of the Group's total result in H1 2022. Increase of Adjusted EBITDA was partially offset by Customers & Solutions result mainly due to ineffective electricity 'proxy' hedges.

2022 guidance for Adjusted EBITDA has been increased to EUR 360–420 million from EUR 330–360 million indicated in First quarter 2022 Interim report.

Subject to approval at our Extraordinary General Meeting of Shareholders, in line with the Dividend Policy, for H1 2022 we propose to distribute a dividend of EUR 0.624 per share corresponding to EUR 45.2 million

In H1 2022, the Group's green share of generated electricity increased by a third to 92.3% (from 61.0% in H1 2021).

S&P Global Ratings, after annual credit rating review in July 2022, affirmed BBB+ (stable outlook) rating.

Business development

Since the end of 2021, we expanded our Green Generation pipeline by around 750 MW to 2.2 GW. This was mainly driven by the accelerated greenfield portfolio development. In H1 2022, it increased by around 345 MW to a total of around 515 MW. After the reporting period, we secured land plots for further 385 MW and now our greenfield pipeline comprises a total of around 900 MW.

We also started the development of the first hybrid solar park in Lithuania (Tauragė solar project) with a capacity of 22 MW while our Silesia WF (50 MW) in Poland reached the construction phase, and Moray West offshore wind project, in which we hold a minority stake (5%), should reach final development steps in the coming months.

On the Networks side, after the first batch of smart meters was received and tested in Q1 2022, we installed them in Q2 2022, which was followed by the mass roll-out kick off shortly afterwards. Our target to finalize the mass roll-out process by the end of 2025 remains unchanged.

Even though natural gas supply is not the core business of the Group, in relation to the Russia's invasion of Ukraine, we suspended natural gas purchases from Gazprom by replacing its supply with LNG cargoes.

Strong Green Generation performance and continued expansion

Energy independence

After Russia's unprovoked invasion of Ukraine, which the Group continues to condemn, energy independence topic is being discussed across the globe. It mostly covers renewables expansion and an assurance of natural gas needs, especially for the upcoming winter season.

In most of our home market countries, renewables targets and policies has been reviewed to enhance its expansion. For example, Lithuanian Parliament approved the energy

"Breakthrough" package (link in Lithuanian) and confirmed Lithuanian offshore wind framework, while Poland amended renewables related legislation, both having the same target – to accelerate renewables capacity expansion by easing its development and construction restrictions, like excess requirements for environmental impact assessment and wind turbines distance from residential properties.

On natural gas side, safety threats and upcoming winter season forced European countries to search for alternatives to Gazprom gas. On this front, we can proudly say that Lithuania became the

first EU member state which swapped Russian natural gas for LNG cargoes (mainly from USA and Scandinavia), meaning that, since the beginning of April 2022¹, the Group has stopped the purchases from Gazprom. Additionally, on 1 July 2022, the Law entered into force prohibiting natural gas imports from Russia and other countries posing a threat to the country's national security. Thus, even though natural gas is not the core business of the Group, we actively participate in every possible way to reduce natural gas dependency on Russia while ensuring uninterrupted supply of natural gas to our customers.

¹ Lithuania has stopped importing electricity from Russia since fall 2021 and since May 2022 all three Baltic states stopped importing electricity from Russia after Europe's Nord Pool power exchange stopped Russian electricity trading.

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We stand with the people of Ukraine and will continue to do so. Since the beginning of the invasion, we contributed to and initiated actions that helped both the people of Ukraine and our colleagues who were willing to support family members, friends or people fleeing the war. Items of medical and other humanitarian aid were collected and sent to the conflict zone. In addition, we financially support our employees who volunteer by transporting people from the war zone and arranging safe accommodation. This invasion goes against our values, and we have taken and will continue to take actions supporting Ukraine and its people as well as human rights and energy independence.

Performance

In H1 2022, Adjusted EBITDA increased by 38.8% compared to the same period last year, reaching EUR 206.5 million. The increase was mainly driven by the Green Generation segment with the segment's Adjusted EBITDA accounting for almost 60% of the Group's result in H1 2022. This, in turn, has been driven by Pomerania WF, which reached COD in December 2021, and better performance of our operating assets, mostly due to higher electricity prices. The higher Adjusted EBITDA result was partly offset by the lower Customers & Solutions segment result, mainly due to ineffective electricity 'proxy' hedges as the correlation of chosen hedge products deteriorated.

Following the solid performance of the Green Generation segment in H1 2022, we are increasing our Adjusted EBITDA guidance for the full-year of 2022 and expect it in the range of EUR 360–420 million (previous guidance EUR 330–360 million).

In Q2 2022, in the light of increasing prices of energy resources, Lithuanian Parliament has amended legislation to provide consumers with partial price compensation. From H2 2022, increasing prices as well as the regulatory differences of regulated supply customers accumulated by the end of H1 2022 will be partially compensated directly from the State budget through a tariff. Out of the planned EUR 570 million to be allocated from the budget, the State will use a significant portion of the funds to compensate the regulatory differences (EUR 365 million) accumulated by the end of H1 2022 while EUR 205 million will be allocated to compensate H2 2022 energy prices for the customers of all independent suppliers. It should prevent the Group's net working capital from increasing further in H2 2022 as well as reduce the currently accumulated debts that have been used to finance regulatory differences until the second half of this year.

Turning to our shareholder returns, for the second half of 2021 a dividend of EUR 0.600 per share was confirmed at our Annual General Meeting of Shareholders. In line with our Dividend Policy, we paid out a dividend of EUR 1.19 per share for the year 2021, corresponding to a total of EUR 87.6 million, and assured the annual dividend increase of at least 3%.

We are continuing our dividend commitment and subject to approval at the Group's Extraordinary General Meeting of Shareholders to be held on 29 September 2022, for H1 2022 we propose to distribute a dividend of EUR 0.624 per share, corresponding to EUR 45.2 million.

Finally, after the reporting period, in July 2022, S&P Global Ratings affirmed 'BBB+' (stable outlook) rating after annual credit rating review, which, once again, confirms solid and resilient financial position of the Group even during such turbulent times

Business development

Since the end of 2021, we have successfully continued working on our Green Generation expansion by increasing pipeline by around 750 MW to 2.2 GW and achieving significant milestones across project development.

In H1 2022, we materially increased our greenfield portfolio with additions of around 345 MW to a total of around 515 MW. After the reporting period, we secured land plots for further 385 MW and now our greenfield pipeline comprises a total of around 900 MW. It includes the most advanced solar project with a capacity of 252 MW for which grid connection was secured in Lithuania. This project's investments are estimated to reach up to EUR 200 million and COD to take place by the end of 2024.

We also started the development of the first hybrid solar park in Lithuania (Tauragė solar project) with a capacity of 22 MW in the vicinity of an existing Vėjo Gūsis WF (19.1 MW) while our Silesia WF (50 MW) reached the construction phase.

On the offshore wind front, significant milestones were reached as well. Moray West offshore wind project (850–900 MW), in which we hold a minority stake (5%), after selecting Siemens Gamesa to deliver wind turbines, should reach final development steps in the coming months. Additionally, after the reporting period, the project reached another milestone – it was awarded a 15-year CfD for 294 MW (out of the total capacity), which brings closer to the final investment decision. Also, earlier this year, we sent our team for a secondment to gain the offshore development related knowledge from Ocean Winds, which we believe is crucial in order to succeed in the Lithuanian Offshore WF I project.

Turning to the Networks segment, since the end of 2021, we have successfully continued maintenance and expansion works,

Our Adjusted EBITDA grew by 38.8% to EUR 206.5 million compared to H1 2021. The launch of Pomerania WF in Poland and better results of our operating Green Generation assets continues to be the key drivers of our strong performance.

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including smart meter roll-out. After the first batch of smart meters was received and tested in Q1 2022, we installed them in Q2 2022, which was followed by the mass roll-out kick off shortly afterwards. Our target to finalize the mass roll-out process by the end of 2025 remains unchanged. Same as previously, we continue to face the risk of supply chain disruptions due to the global supply issue ('the semiconductor crisis') as well as the geopolitical crisis, potentially causing disruption in the production of smart meters and, thus, affecting the project by having the smart meters delivered in smaller quantities than planned and/or within a longer timeframe.

Sustainability

With sustainability being at the forefront of Group's strategy and activities, we place a great emphasis on environmental, social, and corporate governance criteria in navigating the energy transition and working towards an energy smart world.

In Q1 2022, we presented our GRI-aligned comprehensive Sustainability Report for 2021. We continue to refine our disclosures to provide a wide set of stakeholders a clear view of our performance and progress.

Occupational safety and health issues of employees and contractors is one of the priorities of the Group. However, at the time of publishing the report, we had three fatal incidents – two contractors and one employee of the Group were fatally injured during work. As such cases severely shock the Group, we are taking all necessary steps based on our internal procedures in place to prevent such tragedies in the future.

This year we also focus more on mental health and wellbeing of employees in the Group. The COVID-19 pandemic, the war started by Russia against Ukraine – all this affects employees emotions. We have taken steps to make the topic a priority and included it in our everyday life – we are promoting wellbeing and raising awareness around it at work to prevent burnout and make employees both – happier and safer. One of the most prominent initiatives is a Well-being Mentors project, launched at the beginning of the year. The idea of a community of trained employees acting as volunteer mentors that provide emotional support to their colleagues was recognised nationally – it has become the best practice of personnel management in 2022 in Lithuania.

Moreover, we are pleased to share that, after the reporting period, Ignitis (Customers & Solutions) received a platinum medal for its sustainability practices from EcoVadis, a ratings platform that focuses on sustainable supply chains. Ignitis was listed among the top 1% of the companies assessed globally by EcoVadis and among top 3% of assessed companies in the

sector. This is a great achievement not only for Ignitis, but also for the entire Group.

In the second half of this year, we will continue to devote more attention to our strategic sustainability priorities: focus on fine-tuning our decarbonisation plan to be in line with science-based targets, and also devote significant attention to Taxonomy alignment, biodiversity, and waste impact assessments, strengthening employee and contractor safety practices and streamlining our efforts to increase diversity and inclusion.

Corporate changes

Reporting period was also marked with changes on the Group's corporate governance front as new members of the Management Board have been elected by the Supervisory Board. 3 out of 5 of the members have served in the previous term of the Management Board, including CEO, thus, allowing to comfortably continue the Group's development.

Looking ahead

The Group's strong performance during such geopolitically and economically turbulent times is evidence of our robust business profile. Despite potential uncertainty we might face for the rest of this year, and especially during the winter, we continue working on enabling energy transition to increase the energy independence both in Lithuania and our neighboring countries.

Darius Maikštėnas
Chair of the Management Board and CEO
Ignitis Group

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1.2 Business highlights

January	February	March	April	May	June
Green Generation: A tender for procurement and installation works of 5th unit in Kruonis PSHP (110 MW increase to a total of 1,110 MW) was announced.	Governance: New members of the Management Board of Ignitis Group were elected by the Supervisory Board. The new Management Board comprises five members. Three of them, including CEO, were re-elected.

Green Generation: Thierry Aelens, a well-respected executive with extensive experience in development of offshore wind projects in leading energy companies, was appointed as the new CEO of Ignitis Renewables.

Green Generation: As no agreement regarding acceptable return level which would be in line with our target range was reached, the conditional SPA agreement with the developer (Sun Investment Group) of Polish solar portfolio I (up to 170 MW) was terminated.

Strategy: 2022–2025 Strategic Plan was published. | Green Generation: Lithuanian legislation setting general offshore development framework approved. | Finance: A dividend of EUR 0.600 per share was paid out for the second half of 2021.

Governance: An international Top Employer 2022 Lithuania Certificate was awarded to the Group for applying the highest HR management standards.

Governance: Vilnius District Court dismissed the case on the incentive share options programme for employees of the Group.

Customers & Solutions: In relation to the Russian invasion of Ukraine, the Group suspended natural gas purchases from Gazprom by replacing its stock with LNG cargoes. | Green Generation: A contract was signed with Valmet for the installation of biomass boiler systems of Vilnius CHP biomass unit. Accordingly, due to a global supply chain disruption and workforce shortage, mainly affected by the Russian invasion of Ukraine, generation of first energy in Vilnius CHP biomass unit was rescheduled to Q1 2023. However, COD in Q2 2023 remains unchanged.

Green Generation: Gary Bills, an executive with a vast experience in the development and construction of renewable energy projects gained while working at consultancy companies and leading manufacturers, was appointed as COO for wind and solar development of Ignitis Renewables.

Customers & Solutions: Baltic states stopped importing electricity from Russia after Europe's Nord Pool power exchange stopped Russian electricity trading. As a result activity of Russian related market players as 'Inter RAO Lietuva' was stopped which in turn opened opportunities to expand B2B client portfolio.

Customers & Solutions: The gas interconnection between Poland and Lithuania (GIPL) started commercial operation, allowing Lithuanian-Polish natural gas exchange which strengthens the energy independence of the region and increases trading opportunities. | Green Generation: The development of the first Lithuania's hybrid solar park (Taurage solar project) with a capacity of 22 MW was initiated in the vicinity of an existing Vejo Gūsis WF (19.1 MW). COD is expected to take place by the end of 2024.

Green Generation: Installation of wind turbines has been started in Mažeikiai WF (63 MW).

Innovations: A tender for a manager of new Innovation Fund, focusing on investments into start-ups operating in the energy, e-mobility and climate technology sectors, of a total size of over EUR 50 million, was announced. |

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July	August
Finance:
After the annual review, a credit rating agency S&P Global Ratings affirmed 'BBB+' (stable outlook) credit rating of the Group.

Customers & Solutions:
Lithuanian Parliament amended all legal acts related to providing customers with partial compensation due to increasing prices of energy resources. From H2 2022, increasing prices as well as the regulatory differences of regulated supply customers accumulated by the end of H1 2022 will be partially compensated directly from the State budget through a tariff. Out of the planned EUR 570 million to be allocated from the budget, the State will use a significant portion of the funds to compensate the regulatory differences (EUR 365 million) accumulated by the end of H1 2022 while EUR 205 million will be allocated to compensate H2 2022 energy prices for the customers of all independent suppliers, having a positive effect on the Group's working capital and debt level.

Green Generation:
Grid connection for the largest Group's greenfield solar park project so far with a capacity of 252 MW was secured in Lithuania. Investments are estimated to reach up to EUR 200 million and COD to take place by the end of 2024.

Sustainability:
Ignitis (Customers & Solutions) received a platinum medal (previously received a silver medal) for its sustainability practices from EcoVadis, and now falls among the top 1% of all companies assessed.

Networks:
A mass smart meter roll-out has been started.

Governance:
The Group kicked off with 'Energy Smart START' scholarship programme, which will support and encourage students to choose energy engineering programmes.

Green Generation:
Construction of Silesia WF (50 MW) has been started. | Governance:
In relation to the post-IPO stabilisation, share capital of the parent company was reduced to EUR 1,616,445,476.80 (from EUR 1,658,756,293.81) by annulling 1,894,797 units of own ordinary registered shares with a nominal value of EUR 22.33 each, thus, reducing the free float to 25.01% (from 26.92% level during the IPO).

Finance:
Due to the increase in power prices as well as to ensure market demand and uninterrupted natural gas supply, the Group concluded additional short-term loan agreements to fund growth in working capital needs, with a total limit of around EUR 500 million (as of report issue date).

Green Generation:
Received a favourable Stockholm Chamber of Commerce ruling in the legal dispute with Rafako S.A. confirming their fault for the unfinished Vilnius CHP biomass unit construction works. |

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Almost 60%

Green Generation Adjusted EBITDA accounted for almost 60% of the Group's total result in H1 2022 (EUR 119.4 million out of EUR 206.5 million).

First half year 2022 interim report / Overview

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1.3 Performance highlights

Financial¹,²

EBITDA, Adjusted EBITDA (APH)
EURm

Adjusted EBITDA growth was driven by Green Generation segment. Main contributors to the growth were the launch of Pomerania WF in Poland and better results of our operating Green Generation assets, both driven by higher electricity market price. Adjusted EBITDA result was partly offset by a decrease in Customers & Solutions segment result mainly due to ineffective electricity "proxy" hedges as the correlation of chosen hedge products deteriorated.

ROCE LTM, Adjusted ROCE LTM (APH)
%
Adjusted ROCE LTM increased to 9.0%, mostly impacted by an increase in Adjusted EBITDA.

Net profit, Adjusted net profit (APH)
EURm
Adjusted Net Profit increase was driven by the growth in Adjusted EBITDA, which was partly offset by higher depreciation and amortisation as well as income tax expenses.

ROE LTM, Adjusted ROE LTM (APH)
%
Adjusted ROE LTM increased to 10.5% mainly due to increased Adjusted net profit.

Investments (APH)
EURm

Investments increased mainly due to higher investments in electricity distribution network expansion and maintenance as a result of more new connection points and renovated objects as well as increased contractors fees. Contractors fees increased on average by 35% per client for new connections and by 43% per object for maintenance.

Net debt (APH)
EURm

Net debt increased by 20.8% mainly due to higher need for working capital influenced by growth in inventories and accrued amounts receivable for regulatory differences which was impacted by high energy prices and suspended purchase of Gazprom's natural gas. The increase was partly offset by positive FFO and a receivable from EPSO-G obtained.

FFO LTM/Net debt (APH)
%
FFO/Net debt decreased from 30.5% to 28.4% due to increased Net debt which was partly offset by increased FFO.

Outlook for 2022

Adjusted EBITDA (APH)
EURm

Foilwork debt decreased from 30.5% to 28.4% due to increased Net debt which was partly offset by increased FFO.

¹ To simplify the reporting the management have decided to cease using a part of management's adjustments (for more information see Annual report 2021 section 'Annual results' part 'Significant changes in reporting period of 2021'). Due to the change of APM made in the last two quarters of 2021, the measures of 2021 quarters were recalculated accordingly.² Due to the Networks Methodology update, change in accounting policy and reclassifications, all financial indicators were recalculated retrospectively for the quarters of the year 2021 (for more information, see Annual report 2021 section 'Annual results' part 'Significant changes in reporting period of 2021').
APH. Alternative Performance Measure – adjusted figures used in this report refer to measures used for internal performance management. As such, they are not defined or specified under International Financial Reporting Standards (IFRS), nor do they comply with IFRS requirements. Definitions of alternative performance measures can be found in the 'Further information' section of this report and on the Group's website.

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Environment

The 26.6% increase in green electricity generated (net) was driven by Pomerania WF (COD in December 2021) and Kaunas HPP due higher levels of water in the Nemunas river. The increase was offset by lower generation of Kruonis PSHP due to fewer favourable days for generation.

Green share of generation %

Green Generation installed capacity MW

Climate action GHG emissions, thousand t CO₂ eq

SOCIAL

Safety TRIR, times

Employee satisfaction eNPS, % (1-100)

The increase of TRIR results was largely due to the challenging weather conditions in winter resulting in occurrences of slipping, and the failure to follow proper safety precautions. At the time of publishing the report, three fatal accidents were recorded in 2022 (2 contractors and 1 employee). Inspections are ongoing and measures will be taken accordingly.

During H1 2022 employee experience has improved, which is indicated by an increase in eNPS of 5.6 pp to 64.9%.

Governance

Supervisory and Management Boards Nationality and gender diversity

The share of female and international professionals in Management and Supervisory Boards is ~42%. The number of international board members' increased from 2 to 5 after the new Supervisory Board was formed in October 2021 while the number of female members remained constant.

Operational efficiency Networks quality (electricity) SAIDI, min/SAIFI, units

Electricity quality indicators during H1 2022 were affected by extreme conditions/natural disasters (that caused 4 mass disconnection in January and February 2022) and strong winds local storms. Increased number of installed automatic solutions, as well as proactive management of staff levels based on the weather forecast, resulted in reduced average interruption duration.

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1.4 Outlook

Adjusted EBITDA guidance

In the outlook announced in our Annual report 2021, we expected Adjusted EBITDA to be in the range of EUR 290–335 million for 2022. In May with our First quarter 2022 Interim report we have increased our guidance to EUR 330–360 million.

Following the solid performance of the Green Generation segment in H1 2022, we are increasing our guidance to EUR 360–420 million and reiterate our directional Adjusted EBITDA guidance for business segments.

In 2022, compared to 2021, we expect an increase in results of both of our core segments – Green Generation and Networks. Green Generation is expected to grow mainly due to the full year effect of Pomerania WF, which reached COD in December 2021, as well as due to the implementation of asset rotation programme. Additionally, due to increased electricity prices in the market we expect better results from our existing Green Generation units' unhedged portfolio part. Better results in the Networks segment are related to the additional tariff component established in the updated regulatory Methodology (for more information, see our the Annual report 2021 section 'Significant changes in reporting period of 2021'). However, in the Customers & Solutions segment ineffective electricity 'proxy' hedges are expected to have a negative impact.

Adjusted EBITDA outlook for 2022¹, EURm

	Realised 2021	Guidance 20 February 2022	Guidance 15 May 2022	Guidance 23 August 2022
Adjusted EBITDA APA	332.7	290–335	330–360	360–420
Networks	145.4	Higher	Higher	Higher
Green Generation	107.5	Higher	Higher	Higher
Flexible Generation	37.2	Lower	Lower	Lower
Customers & Solutions	40.6	Lower	Lower	Lower
Other	2.0	Stable	Stable	Stable

¹ Adjusted EBITDA indication for the Group is the prevailing guidance, whereas directional effect per business segment serves as a mean to support it. Higher/stable/lower indicates the direction of the business segment's change in 2022 relative to the actual results for 2021.

Forward-looking statements

The interim report contains forward-looking statements, which reflect current views and are, by nature, subject to risks and uncertainties. Because they relate to events and circumstances that will occur in the future, the actual development may differ materially from our expectations. We are unable to predict the impact of these events. For further information about the risks relevant to the Group's activities, see section 4.4 'Risk and risk management'.

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1.5 Investor information

Overview

In H1 2022, the Group's shares and GDRs have generated TSR of (12.5%) and (13.8%) respectively. During the same period, the TSR of our benchmark index (Euro Stoxx Utilities) equaled to (14.3%).

Since the beginning of 2022, the total (shares and GDRs) turnover was equal to EUR 69.4 million (EUR 48.8 million on Nasdaq Vilnius exchange and EUR 20.6 million on LSE), whereas the average daily turnover totaled to EUR 0.6 million (EUR 0.4 million on Nasdaq Vilnius exchange and EUR 0.2 million on LSE). Compared to H1 2021, both the total turnover and the average daily turnover decreased by 47.8% and 45.5%¹ respectively.

At the end of the reporting period, the Group's market capitalisation was EUR 1.3 billion.

Currently, the Group is covered by 7 equity research analysts. Their recommendations and price targets are available on our website.

Price development and return in H1 2022

The Group is a constituent of the below indices

Price performance information in H1 2022

	Nasdaq Vilnius	LSE	Combined
Period opening¹, EUR	21.20	21.10	-
Period high¹ (date), EUR	21.95 (13 Jan)	21.60 (13 Jan)	21.95
Period low¹ (date), EUR	17.56 (7 Mar)	16.00 (8 May)	16.00
Period VWAP², EUR	19.39	18.47	19.02
Period end², EUR	17.98	17.60	-
Period turnover (average daily), EURm	48.81 (0.4)	20.57 (0.2)	69.38 (0.6)
Market capitalisation, period end, EURbn	-	-	1.3

¹ In H1 2021, total (shares and GDRs) turnover was equal to EUR 132.9 million (EUR 74.0 million on Nasdaq Vilnius exchange and EUR 58.9 million on LSE), whereas the average daily turnover totalled to EUR 1.1 million (EUR 0.6 million on Nasdaq Vilnius exchange and EUR 0.5 million on LSE).
² Index = 100.
³ As of closing trading market price.
⁴ Weighted average volume price.

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Shareholders composition

Shareholders composition (at the end of the reporting period)

Majority Shareholder (Ministry of Finance of the Republic of Lithuania) 73.1%

Institutional investors 16.6%

Retail investors 7.8%

Treasury shares¹,² 2.6%

During the reporting period, share of the Republic of Lithuania (the authority implementing shareholder's rights – the Ministry of Finance of the Republic of Lithuania, Majority Shareholder) remained unchanged (73.1%) and there are no other parties holding more than 5% of the parent company's share capital.

However, after the reporting period each investor's shareholdings proportionally increased, as a result of the reduction of the parent company's share capital (more information detailed below), leaving Majority Shareholder now holding 74.99% of shares.

Credit rating

On 5 July 2022, after the annual review, a credit rating agency S&P Global Ratings affirmed 'BBB+' (stable outlook) credit rating of the Group. Further information on the credit rating, including credit rating reports, is available on our website.

For further investor related information, see our Annual report 2021 or visit 'Investors' section on our website.

S&P Global

Ratings

BBB+ /Stable/ -

Parameters of the securities issues

	Nasdaq Vilnius	LSE	Combined
Type	Ordinary registered shares	Global Depositary Receipt (GDR)	-
ISIN-code	LT0000115768	Reg S: US66981G2075; Rule 144A:US66981G1085	-
Ticker	IGN1L	IGN	-
Nominal value, EUR	-	-	22.33 per share
Number of shares (share classes)¹	-	-	74,283,757 (one share class)
Number of treasury shares²	-	-	1,894,797 (2.6%)
Free float, shares (%)¹,³	-	-	18,105,203 (24.4%)
Ordinary registered shares vs GDRs split	64.6%	35.4%	100%

Financial calendar 2022

29 September 2022	Extraordinary General Meeting of Shareholders
12 October 2022	Expected Ex-Dividend Date (for ordinary registered shares)
13 October 2022	Expected Record Date for dividend payment (for ordinary registered shares)
22 November 2022	Interim report for the first nine months of 2022

Financial calendar is available on our website and is immediately updated if there are any changes.

General shareholders' meetings, dividends & share capital

In Q1 2022, the Annual General Meeting of Shareholders has been held, during which a dividend of EUR 0.60 per share for the second half of 2021, corresponding to EUR 43.85 million, has been confirmed. In line with our Dividend Policy, we paid out a dividend of EUR 1.19 per share for the year 2021, corresponding to EUR 87.6 million.

In line with our dividend commitment, for H1 2022 we propose to distribute a dividend of EUR 0.624 per share, corresponding to EUR 45.2 million. However, it is still subject to approval at the Group's Extraordinary General Meeting of Shareholders to be held on 29 September 2022, corresponding to EUR 45.2 million.

During H1 2022, the parent company's share capital remained unchanged. However, after the reporting period, on 9 August 2022, in relation to the post-IPO stabilisation, share capital was reduced to EUR 1,616,445,476.80 (from EUR 1,658,756,293.81) by annulling 1,894,797 units of the parent company's acquired own ordinary registered shares. As a result, a total number of ordinary registered shares decreased to 72,388,960 (from 74,283,757) causing a decrease in the free float to 25.01% (from 26.92% level at IPO) and a proportional increase in each investor's shareholdings. Accordingly, a new wording of the Articles of Associations was approved.

Further relevant information regarding general meetings of shareholders is available in the 'Governance' section of this report and on our website.

ignitis

group

First half year 2022 interim report / Business overview
Contents

Business overview

2.1 Business profile 17
2.2 Market presence 18
2.3 Strategy and targets 19
2.4 Business environment 26

ignitis
group
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First half year 2022 interim report / Business overview

Contents

2.1 Business profile

Creating an Energy Smart world

Core businesses

Networks

Resilient and efficient energy distribution enabling the energy transition.

Activities

Operation, maintenance, management, and development of electricity and natural gas distribution networks to ensure safe and reliable energy distribution. Supply of last resort.

Revenue model

Fully regulated through 5-year regulatory periods based on a transparent RAB-WACC methodology.

CO₂ neutral strategy support

Through reduction in network losses, timely connection of renewable energy assets, investments to allow further electrification.

¹ Information reflects data for the full year 2021, except for electricity capacity which reflects data as of 30 June 2022.

Green Generation

Focused, sustainable, and profitable growth.

Activities

Generation of electricity from renewable energy sources including wind, hydro, solar, biomass and waste-to-energy. Development and operation of new generation capacities.

Revenue model

Contracted through renewable energy long-term support schemes (FiT, FiP, CfD), PPAs, and merchant.

CO₂ neutral strategy support

Through development of zero carbon electricity generating assets.

Complementary businesses

Flexible Generation

Reliable and flexible power system.

Activities

Provision of ancillary services to ensure stability and security of Lithuania's electricity system.

Revenue model

Largely regulated, based on a transparent methodology, with capacities awarded through annual auctions.

CO₂ neutral strategy support

Enabling the system to integrate more renewable energy capacities.

Customers & Solutions

Innovative solutions for easier life and energy evolution.

Activities

Supply of electricity and gas, wholesale trading and balancing, green energy solutions for businesses and residents and energy efficiency projects.

Revenue model

Regulated tariffs and commercial contracts.

CO₂ neutral strategy support

Enabling renewable energy build-out through provision of PPAs, increasing green electricity supply and reducing natural gas supply.

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First half year 2022 interim report / Business overview
Contents

2.2 Market presence

Regional leader exploring opportunities in the markets undergoing energy transition paths

GREEN GENERATION PORTFOLIO (3,373 MWe, 349 MWth)
- Operational: 1,215 MWe, 180 MWth
- Under construction: 186 MWe, 169 MWth
- Under development (advanced stage): up to 212 MW
- Under development (early stage): around 1,760 MW