Petrol Group

Interim / Quarterly Report • Aug 26, 2024

REPORT ON THE OPERATIONS OF THE PETROL GROUP AND PETROL D.D., LJUBLJANA

IN THE FIRST SIX MONTHS OF 2024

Public

CONTENTS

	INTRODUCTION	4
1.	Statement of the Management's Responsibility	4
2.	Introductory notes	4
3.	Business highlights of the Petrol Group	5
4.	Alternative performance measures	9
5.	The Petrol Group in the region	10
6.	Strategic orientation	11
	BUSINESS REPORT	12
7.	Business performance analysis	12
8.	Operations by product groups	23
9.	Investments	34
10.	Risk management	34
11.	Share and ownership structure	37
12.	Events after the end of the accounting period	40
	SUSTAINABLE DEVELOPMENT	41
13.	Responsibility towards the natural environment	41
14.	Employees	41
15.	Quality control	42
16.	Social responsibility	42
	FINANCIAL REPORT	44
17.	Financial performance of the Petrol Group and Petrol d.d., Ljubljana	44
18.	Notes to the financial statements	52
19.	Segment reporting	53
20.	Notes to individual items in the financial statements	55
21.	Financial instruments and risks	58
22.	Related party transactions	70
23.	Contingent liabilities	72
24.	Events after the reporting date	72
Appendix 1: Organisational structure of the Petrol Group

INTRODUCTION

1. Statement of the Management's Responsibility

Members of the Management Board of Petrol d.d., Ljubljana, which comprises Sašo Berger, President of the Management Board, Drago Kavšek, Member of the Management Board, Marko Ninčević, Member of the Management Board, Jože Smolič, Member of the Management Board, Metod Podkrižnik, Member of the Management Board and Zoran Gračner, Member of the Management Board and Worker Director, declare that to their best knowledge:

• ∙ the financial report of the Petrol Group and Petrol d.d., Ljubljana, for the first six months of 2024 has been drawn up in accordance with International Financial Reporting Standards as adopted by the EU and gives a true and fair view of the assets and liabilities, financial position, financial performance and comprehensive income of Petrol d.d., Ljubljana, and other consolidated companies as a whole;
• ∙ the business report of the Petrol Group and Petrol d.d., Ljubljana, for the first six months of 2024 gives a fair view of the development and results of the Company's operations and its financial position, including the description of material risks that Petrol d.d., Ljubljana, and other consolidated companies are exposed to as a whole;
• ∙ the report of the Petrol Group and Petrol d.d., Ljubljana, for the first six months of 2024 contains a fair presentation of significant transactions with related entities, which has been prepared in accordance with International Financial Reporting Standards.

Sašo Berger President of the Management Board

Metod Podkrižnik Member of the Management Board

Ljubljana, 14 August 2024

Drago Kavšek Member of the Management Board

Jože Smolič Member of the Management Board

Marko Ninčević Member of the Management Board

Zoran Gračner Member of the Management Board and Worker Director

2. Introductory notes

The report on the operations of the Petrol Group and Petrol, d.d., Ljubljana, Dunajska 50, for the first six months of 2024 has been published in accordance with the Market in Financial Instruments Act, the Ljubljana Stock Exchange Rules, Guidelines on Disclosure for Listed Companies and other relevant legislation.

The figures and notes regarding the operations have been prepared based on the unaudited consolidated financial statements of the Petrol Group and the unaudited financial statements of Petrol d.d., Ljubljana, for the first six months of 2024, in compliance with the Companies Act and IAS 34 – Interim Financial Reporting.

Subsidiaries are included in the consolidated financial statements, which have been prepared in accordance with IFRS, on the basis of the full consolidation method, while jointly controlled entities and associates are included on the basis of the equity method.

In accordance with IFRS, investments in subsidiaries, jointly controlled entities and associates are carried at historical cost in the separate financial statements.

The report on the operations in the first six months of 2024 has been published on the website of Petrol d.d., Ljubljana, (www.petrol.eu, www.petrol.si), and is available on demand at the registered office of Petrol d.d., Ljubljana, Dunajska cesta 50, 1000 Ljubljana, every working day between 8 am and 3 pm.

The Company's Supervisory Board discussed the report on the operations of the Petrol Group and Petrol d.d., Ljubljana, in the first six months of 2024 at its meeting held on 22 August 2024.

PROFILE OF THE PARENT COMPANY, PETROL D.D., LJUBLJANA, AS AT 30 JUNE 2024

Petrol, slovenska energetska družba, d.d., Ljubljana
Petrol d.d., Ljubljana
Dunajska cesta 50, 1000 Ljubljana
+386 (0)1 47 14 234
www.petrol.eu, www.petrol.si
47.301
5025796000
SI 80267432
EUR 52.24 million
41,726,020
Sašo Berger
Drago Kavšek, Marko Ninčević, Jože Smolič, Metod Podkrižnik, Zoran Gračner (Worker Director)
Janez Žlak
Borut Vrviščar
Mário Selecký, Mladen Kaliterna, Alenka Urnaut, Aleksander Zupančič, Alen Mihelčič, Robert Ravnikar, Marko Šavli

3. Business highlights of the Petrol Group

In the first six months of 2024, the Petrol Group's operations were in line with the set plans, although the results from the sales of petroleum products were still negative at the majority of Slovenian service stations due to the regulation. At the end of 2023, which ended with energy price stabilisation, we were faced with further tightening of the regulatory framework for petroleum products in Slovenia and the still unresolved issue regarding the compensation for the damage due to the natural gas price regulation on the Croatian market. The regulation of petroleum product prices is also present in Croatia and Serbia, but it is much less restrictive. The environmental requirements regarding biocomponent blending and the increasingly stricter regulation in accordance with the Decree Ensuring Energy Savings for Final Customers, which do not provide for adequate coverage in the sellers' regulated margin, are becoming key elements for the company's long–term performance.

According to international institutions, GDP in Slovenia's main trading partners will strengthen in 2024 compared to 2023, although not as much as projected in the autumn. Higher economic growth is also forecast for Slovenia and Croatia, Petrol's two largest markets.

Despite the challenging situation, the Petrol Group achieved good business results in the first six months of 2024. Although the adjusted gross profit1 was slightly lower, our prudent cost control and successful performance by other segments in the Petrol Group ensured that the EBITDA amounted to EUR 123.7 million, which is higher compared to the same period last year and to the plan.

¹ Gross profit + net commodity DFI

All key indicators have stayed positive. We have increased volumes of fuels sold in all key markets (except EU markets which were affected by certain market imbalances last year) and have been successfully increasing the number of electric charging stations; the number of customers and volumes of electricity and natural gas sold have also increased.

For 2024, the Petrol Group projects sales revenue of EUR 5.8 billion, gross profit of EUR 705.6 million, EBITDA of EUR 304.6 million and net profit of EUR 156.5 million. On 16 July 2024, the Government of the Republic of Slovenia returned the maximum permitted margin on diesel and NMB–95 petrol to the level from 2023 by way of a decree; therefore, we assume that we will achieve the set objectives at the end of the year. However, despite the most recent increase of the margin, we estimate that the margin is still not at the level which would ensure a sustainable long–term operational growth in the field of petroleum product sales, especially in the light of the increasing environmental requirements which Petrol is obliged to finance from this activity. In Slovenia, the margins are by far the lowest if compared with the rest of Europe.

As set in our business plan, we aim to earmark EUR 130.0 million for investments, of which 44 percent for energy transition projects. However, the too low margins which make it impossible to cover all operating costs of fuel distribution and sales, have an impact the Petrol Group's investment capacity, especially with regard to the energy transition projects which are vital in making a transition to green fuels. The regulatory framework for energy prices should take into account the additional costs arising from the energy transition, such as the mandatory biofuel blending, CO2 tax and costs related to ensuring savings for final customers.

THE PETROL GROUP	Unit	1–6 2022	1–6 2023	1–6 2024	Index 2024/2023	Index 2024/2022
Revenue from contracts with customers	EUR million	4,154.7	3,434.5	2,948.5	86	71
Gross profit1	EUR million	245.4	314.7	320.6	102	131
Gross profit + Net Derivative Financial Instruments for Commodities1	EUR million	226.7	338.0	335.5	99	148
Operating profit	EUR million	–3.2	72.4	71.7	99	–
Net profit	EUR million	–1.3	52.8	52.1	99	–
Equity3	EUR million	860.2	923.0	920.8	100	107
Total assets3	EUR million	2,740.6	2,635.3	2,456.5	93	90
EBITDA1, 2	EUR million	48.6	116.3	123.7	106	255
EBITDA / (Gross profit + Net Derivative Financial Instruments for Commodities)1	%	21.4	34.4	36.9	107	172
Operating costs / (Gross profit + Net Derivative Financial Insruments for Commodities)1	%	104.1	81.4	77.6	95	75
Net debt/Equity1, 3		0.6	0.5	0.4	87	75
Net debt/EBITDA1, 3, 4		5.4	1.7	1.36	80	25
Added value per employee1	EUR thousand	20.5	34.3	36.9	108	180
Earnings per share attributable to owners of the controlling company	EUR	–0.1	1.3	1.2	93	–
Net investments1	EUR million	23.2	36.2	27.6	76	119
Volume of fuels and petroleum products sold	thousand tons	1,883.6	1,858.6	1,829.9	98	97
Volume of natural gas sold	TWh	10.1	8.2	10.2	124	101
Volume of electricity sold5	TWh	6.8	6.0	5.8	96	85
Revenue from the sales of merchandise and services	EUR million	237.8	262.6	305.9	116	129

1 Alternative performance measure (APM) as defined in chapter Alternative Performance Measures.

EBITDA = Operating profit + Net Allowances for operating receivables + Depreciation and amortisation charge.

3 Data for 2022 and 2023 as at 31 December, data for 2024 as at 30 June.

4 For 2022 and 2023, calculated at the annual level. EBITDA for 2024 is the annually planned one.

5 Sales to end users, trading and management of the retail portfolio.

2

THE PETROL GROUP	Unit	31 December 2022	31 December 2023	30 June 2024	Index 2024/2023	Index 2024/2022
Number of employees		6,224	5,945	5,936	100	95
Number of service stations		594	594	594	100	100
Number of e–charging stations operated by the Petrol Group		417	495	514	104	123
Number of electricity customers	thousand	226	224	231	103	103
Number of natural gas customers (data for the Geoplin Group are not included)	thousand	60	61	61	101	101

THE NUMBER OF SERVICE STATIONS VOLUME OF PETROLEUM PRODUCTS SOLD, IN MILLION TONS

NUMBER OF EMPLOYEES

1.9 1.9

STRUCTURE OF INVESTMENTS ASSETS, IN %

Significant events and achievements in the first six months of 2024

• ∙ Official opening of the Barje North and South service stations, which have been renovated in accordance with state–of–the–art, energy efficient and environment–friendly guidelines (January 2024).
• ∙ Received the prestigious awards Voted Product of the Year 2024 for Coffee to Go, freshly prepared food Fresh and mobile app Petrol GO and Voted Brand of the Year 2024 for Q Max fuel (March 2024).
• ∙ Signed the Ljubljana Climate–Neutral Commitment by 2030 a commitment to an active cooperation in the achievement of ambitious climate objectives in the context of the EU Mission of 100 climate–neutral and smart cities (March 2024.)
• ∙ Signed the consortium agreement for the establishment of hydrogen ecosystem; the consortium brings together more than 6,500 experts and represents the strongest partnership of its kind in Slovenia (March 2024).
• ∙ Cooperated, through financial support, in the opening of a new, 29th station in the Mbajk bike sharing system in Lent, Maribor.
• ∙ Received a special award for being ranked one of the top 10 most distinguished employers in Slovenia, received the title of the most distinguished employer in the energy industry, received a special award for efficient employment in the context of the finalists of the HR team of 2024 selection, the category of large enterprises (April 2024).
• ∙ Opening of the service station on Dunajska 70 in Ljubljana, following a thorough renovation; the service station has a new visual image and concept which reflects Petrol's vision of a service station of the future (April 2024).
• ∙ Received the Top Motivator for Employees 2023 award; in addition to Petrol d.d., Ljubljana, the award which emphasises the commitment of company to employee remuneration and motivation was also received by Petrol d.o.o. (Zagreb); (April 2024).
• ∙ Received the DIGGIT Gold Award in the category of design and user experience, for the Petrol GO mobile app (May 2024).
• ∙ As part of the European CROSS–E cross–border electric charging project, the Petrol Group, and Allego, Emobility Solutions and GreenWay were selected for the installation of high– powered charging points across Europe (May 2024).
• ∙ Successfully completed renovation of the Ljubljana Črnuče–Štajerska service station (May 2024).
• ∙ First test charging of two electric busses of the Ljubljana Passenger Transport (LPP) at the Barje North service station (May 2024).
• ∙ Received the grand award for Marketing Excellence 2024 in all categories (May 2024).
• ∙ At the 38 General Meeting of shareholders of Petrol d.d., Ljubljana, which was held on 23 May 2024, a resolution was passed that dividend for 2023 would amount to EUR 1.8 per share.
• ∙ In May 2024, Petrol d.d., Ljubljana became a 100 percent owner of Petrol Power d.o.o.
• ∙ Extended the offer of high–quality and greener fuels HVO2 for business clients and CNG (compressed natural gas) at the Barje service stations; Petrol is currently the only supplier of HVO in Slovenia (June 2024).
• ∙ In the field of cybersecurity, we received the highest rating, A, based on the cybersecurity rating conducted by Security Scorecard (June 2024).

2 HVO – Hydrotreated Vegetable Oil

4. Alternative performance measures

To present its business performance, the Petrol Group also uses alternative performance measures (APMs) as defined by ESMA (The European Securities and Market Authority). The APMs we have chosen provide additional information about the Petrol Group's performance.

LIST OF ALTERNATIVE PERFORMANCE MEASURES

Alternative performance
measures	Calculation information	Reasons for choosing the measure
Gross profit	Gross profit = Revenue from the sale of merchandise and services – Cost of goods sold	The Petrol Group has no direct influence over global energy prices, which makes the gross profit more appropriate to monitor business performance.
Gross profit + Net DFI for Commodities	Gross profit + Net Derivative Financial Instruments for Commodities	Net derivative financial instruments for commodities are intended for hedging price and volumetric risks and, hence, the amount of sales revenue and the cost of goods sold. In terms of comparison with the previous period, the ratio is more appropriate than merely the gross profit.
EBITDA	EBITDA = Operating profit + Net Allowances for operating receivables + Depreciation and amortisation charge.	EBITDA indicates business performance and is the primary source for ensuring returns to shareholders.
EBITDA / (Gross profit + Net DFI for Commodities)	EBITDA / (Gross profit + Net Derivative Financial Instruments for Commodities)	The share of EBITDA in the gross profit, increased by the net derivative financial instruments for commodities is a good approximation to the share of free cash flow in the gross profit, increased by the net derivatives and ensures better comparability to the previous period and the plan.
Operating costs	Operating costs = Costs of materials + Costs of services + Labour costs + Depreciation and amortisation + Other costs	The criterion is important in terms of the cost–effectiveness of operations.
Operating costs / (Gross profit + Net DFI for Commodities)	Operating costs / (Gross profit + Net Derivative Financial Instruments for Commodities)	The ratio is relevant in terms of the operational cost efficiency and ensures better comparability to the previous period and the plan.
Net debt/Equity	Net debt = Current and non–current financial liabilities + Current and non–current lease liabilities – Cash and cash equivalents; Ratio = Net debt/Equity	The ratio reflects the relation between debt and equity and is, as such, relevant for monitoring the Company's capital adequacy.
Net debt/EBITDA	Ratio = Net debt/EBITDA	The ratio expresses the Petrol Group's ability to settle its financial obligations, indicating in how many years financial debt can be settled using existing liquidity and cash flows from operating activities.
Added value/Employee	Added value per employee = (EBITDA + Integral labour costs)/Average number of employees. Integral labour costs = Labour costs relating to Petrol Group employees + Labour costs relating to third–party managed service stations, which stood at EUR 10.6 million in the period from January to June 2024 and EUR 14.5 million in the period from January to June 2023.	This productivity ratio indicates average newly created value per Petrol Group employee.
Working capital	Working capital = Operating receivables + Contract assets + Inventories – Current operating liabilities – Contract liabilities	The ratio reflects operational liquidity of the Petrol Group.
Net investments	Net investments = Investments in fixed assets (EUR 31.8 million in the period from January to June 2024) + Non–current investments (EUR 0.0 million in the period from January to June 2024) – Disposal of fixed assets and reimbursements (EUR 4.2 million in the period from January to June 2024).	The information about investments reflects the direction of the Petrol Group's development.
Book value per share	Book value per share = equity/total number of issued shares	Book value per share reflects the value of a public limited company's total equity per share.

5. The Petrol Group in the region

SLOVENIA CROATIA BOSNIA AND HERZEGOVINA SERBIA ROMANIA NORTH MACEDONIA KOSOVO MONTE– NEGRO AUSTRIA

The Petrol Group has companies in the following countries:

• ∙ Slovenia
• ∙ Croatia
• ∙ Bosnia and Herzegovina
• ∙ Serbia
• ∙ Montenegro
• ∙ North Macedonia
• ∙ Kosovo
• ∙ Austria
• ∙ Romania

The Group also operates in other countries.

6. Strategic orientation

Our mission

Through a broad range of energy commodities, comprehensive energy solutions and digital approach, we put the user at the centre of our attention. We want to become the first choice for shopping on the go. Together with our partners, we create solutions for a simpler transition to cleaner energy sources. We are building a green energy future in a decisive and active manner, increasing the value for our customers, shareholders and society over the long term.

Our promise

Through the energy transition, we are creating a green future and making a significant contribution to protecting our environment.

Our vision

To become an integrated partner in the energy transition, offering an excellent customer experience.

Our values

• ∙ Respect: We respect fellow human beings and the environment.
• ∙ Trust: We build partnerships through fairness.
• ∙ Excellence: We want to be the best at all we do.
• ∙ Creativity: We use our own ideas to make progress.
• ∙ Courage: We work with enthusiasm and heart.

At Petrol, we feel a strong sense of responsibility towards our employees, customers, suppliers, business partners, shareholders and the society as a whole. We meet their expectations with the help of motivated and business–oriented employees, we adhere to the fundamental legal and moral standards in all markets where we operate, and we protect the environment.

BUSINESS REPORT

7. Business performance analysis

7.1 Business environment

The Petrol Group operates in two highly competitive industries – energy and trade. Besides trends in the area of energy and trade, the Group's operations are subject to several other and often interdependent factors, especially changes in energy commodity prices and the US dollar exchange rate, which are a reflection of global economic trends. In addition, operations in the Petrol Group's markets are influenced to a significant extent by local economic conditions (economic growth, inflation rate, growth in consumption and manufacturing) and measures taken by governments to regulate prices and the energy commodity market.

Economic growth in the euro area slowed down markedly in 2023, especially due to a decline in household purchasing power amid high inflation, tighter financing conditions due to strong monetary policy tightening, partial withdrawal of fiscal support and a decline in external demand. Despite the gradual improvement of sentiment indicators in recent months, no pronounced recovery is yet on the horizon. According to international institutions, GDP in Slovenia's main trading partners will strengthen in 2024 compared to 2023, although not as much as projected in the autumn. The forecasts are exposed to high uncertainty, arising mainly from the unpredictable situation in the Middle East and the disruption of trade routes in the Red Sea.

As further reported by the IMAD in its Spring Forecast of Economic Trends 2024, economic growth in Slovenia slowed to 1.6 percent in 2023 (from 2.5 percent in 2022), but will pick up to 2.4 percent in 2024, which is still lower than anticipated in the Autumn Forecast of Economic Trends 2023 (2.8 percent). Average annual inflation is expected to fall to 2.7 percent (3.9 percent in the Autumn Forecast 2023), or 3.1 percent (December/December) (3.1 percent in the Autumn Forecast 2023) with price increases for most services slowing, yet remaining relatively high given the continued wage growth, while the other cost pressures on service prices are projected to settle down.

In its projections published in the World Economic Outlook in April 2024, the International Monetary Fund forecast a 2.0 percent GDP growth for Slovenia in 2024 (2.2 percent in October 2023). For Croatia, the Petrol Group's second largest market, it forecast a 3.0 percent GDP growth (2.6 percent in October 2023).

In October 2023, the International Monetary Fund forecast a 4.2 percent inflation for Slovenia in 2024, followed by 2.7 percent in April 2024. For Croatia, it predicted a 4.2 percent inflation rate in 2024 in October 2023 (3.7 percent in its April 2024 forecast).

REAL GDP GROWTH, IN %

INFLATION (YEAR–AVERAGE), IN %

Source: IMAD, Spring forecast 2024 (for Slovenia), International Monetary Fund, April 2024 (for other countries and euro area)

In 2023, employment growth and the decline in the number of registered unemployed settled. Employment growth will be limited despite the higher projected economic growth. Additionally, the IMAD predicts a 6.9 percent gross wage rise in nominal terms.

In the first quarter of this year, GDP in Slovenia stagnated, while it was 2.1 percent higher year–on–year. Household consumption increased and the growth of government consumption also improved, while the growth of investment activities and construction activities stabilised. The number of persons in employment increased compared to last year and the number of unemployed decreased. The year–on–year inflation fell to 3 percent in April, the lowest since October 2021.

Economic activity in the euro area slightly increased in the first quarter of the year; the available indicators point to a similar dynamic of activities for the second quarter of 2024.

The high prices of energy commodities and the rising inflation at the start of 2022 prompted governments to cap fuel prices in the markets where we operate. This was followed by the regulation of natural gas and electricity prices and later also district heating prices, all of which has had an impact on the Petrol Group's operations. The technical assumptions for energy prices are slightly lower than assumed in the Autumn Forecast of IMAD; despite the stabilisation of prices on the energy markets and the sufficient availability of energy sources, certain measures to mitigate rising energy prices remain in effect in 2024, while the flood recovery will be a lengthier process.

Oil and petroleum product price movements

The price of Brent North Sea crude oil was between USD 75.9 and 91.2 per barrel in the first six months of 2024. In the same period, the average price was USD 83.4 per barrel, a year–on–year increase of 4 percent.

The price of oil increased in the first quarter of 2024 because of the lower OPEC oil production, the higher demand by China, the world's largest crude oil importer, and the wars in Israel and Ukraine. At the start of the second quarter of 2024, the price of oil started to drop due to the planned stricter limitation of OPEC oil production. Moreover, the global economy, with China (which is still faced with real estate crisis and reduced domestic demand) at the forefront, started cooling. As a result of increased seasonal demand for petroleum products, the price of oil in June again increased to around USD 85 per metric unit.

CHANGES IN BRENT OIL PRICE IN THE FIRST SIX MONTHS OF 2024 AND IN 2023 AND 2022, IN EUR/BARREL

Source: Petrol, 2024

In the first six months of 2024, the price of diesel stood between USD 719.5 and 921.0 per metric ton. The average price of diesel in the first six months of 2024 was USD 812.2 per metric ton, an increase of 3 percent compared to the first six months of 2023 when it stood at USD 790.3 per metric ton.

In the first six months of 2024, the price of petrol was between USD 735.0 and 973.5 per metric ton. The average price of petrol in the period concerned was USD 865.1 per metric ton, an increase of 2 percent compared to the first six months of 2023 when it stood at USD 847.3 permetric ton.

Petroleum product price regulation

The selling prices of diesel and NMB–95 petrol are regulated in the key markets where Petrol has its retail network, which is not customary in the European Union. The key regarding regulation is the fact that the regulated margin is materially lower than in comparable practices in the developed Europe.

In Slovenia, margins on diesel and NMB–95 are capped by way of the Decree on setting prices for certain petroleum products, while the prices of motor fuels at motorway and expressway service stations are exempt from regulation, as are premium fuels NMB–100 and iQ diesel.

The price of extra–light fuel oil has been regulated since 9 November 2021, except for the period from 22 May to 12 September 2022. Until 21 May 2022, the margin was capped at EUR 0.06 per litre and from 27 September 2022, it has been capped at EUR 0.08 per litre.

In Croatia, margins for petrol (eurosuper 95), eurodiesel and blue diesel are capped by way of Decree on the establishment of maximum retail prices. The prices for the propane–butane blends for large tanks or gas storage tanks and for LPG cylinders (7.5 kg or more) are also regulated. Premium fuels are exempt from regulation.

In the Republic of Serbia, the maximum retail price including value added tax for eurodiesel and unleaded NMB–95 petrol was set by way of decree in the amount of the average wholesale price for petroleum products in Serbia, increased by the amount determined in the decree from 9 February 2023.

SloveniaCroatiaSerbia 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 9/2/2023 6/6/2023 29/3/2024 5/12/2023 27/2/2024 1/1/20231/4/20231/7/20231/10/20231/1/20241/4/2024

CAPPED PRICES OF DIESEL IN SLOVENIA, CROATIA AND SERBIA, IN EUR/LITRE

CAPPED PRICES OF PETROL IN SLOVENIA, CROATIA AND SERBIA, IN EUR/LITRE

In Bosnia and Herzegovina, the retail calculation margin has been capped at BAM 0.25 per litre (EUR 0.128 per litre) and the wholesale margin at BAM 0.06 per litre (EUR 0.0307 per litre) since 3 April 2021.

In Montenegro, the prices of petroleum products are set in accordance with the Decree on the method of setting the maximum retail prices of petroleum products, which has been in force since March 2021. The prices change fortnightly, based on changes in Platts quotations and the US dollar exchange rate. The decree determined fixed margins, namely for NMB–95/98 in the amount of EUR 0.1108 per litre and for diesel in the amount of EUR 0.1079 per litre.

Price movements of other energy commodities

The settlement price of the annual baseload electricity on the Hungarian market for 2024 was 104.8 EUR/MWh and for 2025 it was 102.5 EUR/MWh.

ELECTRICITY PRICE TRENDS IN 2023, IN THE FIRST SIX MONTHS OF 2024, AND PROJECTIONS, IN EUR/MWh

Source: Petrol, 2024

The prices of electricity in Europe fell notably already in January 2024. In the first three months of this year, the prices of electricity and natural gas, marked by significant daily volatility, were mostly in the bearish trend, which lasted until the end of February when the lowest price of the annual baseload electricity product to date was recorded on the Hungarian market for 2025, at 75.5 EUR/MWh.

In the second quarter of 2024, the futures electricity prices were in a slight and stable upward trend. The maximum price for the baseload product on the Hungarian market for supply in 2025 was achieved at the end of May, at EUR 104.8 per MWh. The settlement price of the baseload product on the Hungarian market for 2025 was EUR 98.02 per MWh. The main factors contributing to such price increase were continuous increase of energy demand due to the recovered industrial production in Europe, Asian competition in LPG supply and geopolitical risks in the Middle East and Ukraine. In this period, the reduced imports of electricity from Austria increased daily price volatility, which increased spot prices, especially in evening hours.

NATURAL GAS PRICE TRENDS IN 2023, IN THE FIRST SIX MONTHS OF 2024, AND PROJECTIONS, IN EUR/MWh

Source: Petrol, 2024

According to the data of Gas Infrastructure Europe, the European gas storage sites were filled to 59 percent at the end of the heating season at the end of March 2024, which is approximately 5 percentage points more than a year ago, and at the end of the second quarter, they were filled to 78.1 percent capacity, similar to the same period last year and approximately 15 percent higher than the five–year average. According to analysts, European gas storage facilities are to be 90 percent full before 1 November. The reference value of futures on the Dutch natural gas trading hub TTF3 for supply in 2025 recorded an 8.5 percent growth since the start of the year and ended the first half of the year at EUR 35.2 per MWh. The reason for the gas price growth in the second quarter of the year was mainly the increased demand for LNG from Asia due to heat waves which increased the need for cooling, and the geopolitical tension which elevated supply risks.

The prices of emission allowances also increased on the European market, reaching the highest value in May 2024 at EUR 76.6 tons, which is on a par with the levels at the end of 2023. Towards the end of the second quarter, a downward trend started in June in the light of the lower demand and the upcoming European election, with the reference EUA4 of 24 December closing the first half of the year at EUR 66.7 MWh or 13.8 percent below the price from the start of the year.

Price regulation of other energy products

Slovenia

• Electricity

The retail prices of electricity for households and small businesses as determined by the Electricity Supply Act, and for consumption in common areas of multi–apartment buildings and mixed multi–apartment and business buildings were regulated throughout 2023.

Throughout 2023, the maximum retail price was set in accordance with the Decree on the determination of electricity prices for micro, small and medium size. Such regulation is no longer in effect in 2024.

The maximum permitted retail electricity price for public bodies, public economic institutions, public agencies, public funds, municipalities, providers of publicly valid education and training programmes, and for providers of social care services, social welfare programmes and family support programmes was determined by way of decree throughout 2023.

On 13 January 2023, the Government of the Republic of Slovenia adopted the Decree on the determination of electricity prices. For supplies regulated by the decrees, suppliers are entitled to a monthly compensation for the difference between the average monthly purchase cost and the regulated retail price, taking into account the supplier's cost of EUR 10 per MWh.

The decree adopted on 20 October 2023 has kept the electricity prices for household customers regulated in 2024, namely 90 percent of the actual monthly consumption for each individual tariff, while the price of the supply contract applies for the remaining 10 percent. The Government of the Republic of Slovenia adopted Decree determining compensation to electricity suppliers in 2024.

• Natural gas

The retail prices of natural gas from the transport and distribution network gas system for households and small business customers were regulated throughout 2023.

On 13 January 2023, the Government of the Republic of Slovenia adopted the Decree on determining compensation for natural gas suppliers. For supplies regulated by the decrees, suppliers are entitled to a monthly compensation for the difference between the average monthly purchase cost and the regulated retail price, taking into account the supplier's cost of EUR 5 per MWh.

³ TTF – Title Transfer Facility

⁴ EUA – European Union Allowances

The decree adopted on 20 October 2023 kept the natural gas prices regulated until 30 April 2024. The Government did not adopt a decree on the compensation to suppliers for the damage caused by the price regulation.

• Heat

The district heating prices for households which receive heat from the distribution system where the distributor carries out the public service via the individual or common offtake point were regulated in the period from 1 January to 30 April 2023. After the end of the price regulation period, district heating system distributors were entitled to the compensation for the damage resulting from the regulation. The prices are not regulated in 2024.

Croatia

• Natural gas

The Republic of Croatia, through its energy regulatory agency HERA, introduced a market–based supply for household customers across Croatia in 2020. To this end, in October 2020, HERA published an implementing regulation with a detailed methodology for calculating the price for this customer segment.

On 4 April 2023, the Croatian energy regulator HERA adopted a new methodology regulating retail natural gas prices in Croatia, introducing a 15–day reference period for setting gas sales prices instead of the previous 11– month period. The amendment has a retroactive effect on the contractual relationships between suppliers and customers, as the amended methodology does not take into account the actual value of the leased gas price according to the methodology set in 2020.

On 7 July 2023, the Government of the Republic of Croatia, by decree, established a mechanism to compensate natural gas suppliers for the difference between the price to be paid for the purchase of this energy commodity and the price regulated by the pricing methodology for the supply of natural gas. The decree applies to deliveries from 1 April 2023 to 31 March 2024.

Impact of movements in the US dollar/euro exchange rate

The USD to EUR exchange rate ranged between USD 1.06 and 1.10 per EUR in the first six months of 2024. The average exchange rate of the USD according to the exchange rate of the European Central Bank stood at USD 1.08 per EUR in the period concerned (in 2023, the average exchange rate was USD 1.08 per EUR).

7.2 The Petrol Group's performance

The Petrol Group's operating results are reported by the following product groups:

• ∙ Fuels and petroleum products, which includes sales of petroleum products, sales of LPG and other alternative energy commodities (compressed natural gas), the transport, storage and handling of fuels, payment card revenues, and sales of biomass, tyres and tubes, and batteries.
• ∙ Merchandise and services, which includes the sale of foodstuffs, haberdashery, tobacco products, lotteries, coupons and cards, Coffee to Go, Fresh products, car cosmetics and spare parts, as well as car wash services, sales promotion services and other services and catering facility rentals.
• ∙ Energy and solutions, which includes the sale and trading of electricity and natural gas, the sale of energy solutions (systems of energy and the environmental management of buildings, water supply systems, efficient lighting systems, district energy, water treatment, industrial solutions and energy solutions for home and industry), the sale of heating systems, natural gas distribution systems, mobility and energy commodity generation.
• ∙ Other: mining services, maintenance services, vacation rentals.

In the first six months of 2024, the Petrol Group generated EUR 2.9 billion in revenue from contracts with customers, a year–on–year decrease of 14 percent, mainly due to the lower prices of energy commodities on spot and futures markets.

THE PETROL GROUP'S REVENUE FROM CONTRACTS WITH CUSTOMERS BY PRODUCT GROUP IN THE FIRST SIX MONTHS OF 2024, IN %

In the first six months of 2024, the Petrol Group sold 1,829.9 thousand tons of fuels and petroleum products, a decrease of 2 percent compared to the same period of 2023, the reason being lower sales to EU markets; in 2023, EU markets were faced with a shortage of petroleum products due to the embargo on imports of commodities from Russia. Sales on the Slovenian market are slightly higher than in the same period last year, while sales on SEE markets increased the most.

In the first six months of 2024, we generated revenue of EUR 305.9 million from the sales of merchandise and services, an increase of 16 percent year–on–year. Revenue was increased in the segment of food and tobacco product sales in Slovenia and SEE markets.

In the first six months of 2024, we sold 10.2 TWh of natural gas, 5.8 TWh of electricity and 77.5 thousand MWh of heat.

In the period concerned, the gross profit including net commodity derivatives amounted to EUR 335.5 million, a decrease of 1 percent compared to the first six months of 2023. Compared to the previous year, the lowest result was recorded in Slovenia because of the stricter margin regulation, but we made up for the deficit with better sales on other SEE markets where the margin achieved was higher, and the excellent results in the field of merchandise sales.

In accordance with standards, gains and losses on derivatives which are used to balance volumetric and price risks when selling energy commodities, are recorded under other revenue and expenses and not under gross profit.

In Croatia, the capped margin on petrol and diesel in the period of January–June 2024 was most of the time higher (until 5 June 2024) than in the same period of 2023, while it was quite lower on the Slovenian market. Reimbursements for the electricity price regulation in Slovenia are recorded under the cost of goods sold, as was the practice in 2023, while the regulator did not foresee reimbursements for the regulation of natural gas prices. Since 1 April 2023, the Croatian legislation foresees reimbursements for the damage resulting from the regulation of natural gas prices, but since the claims issued by Geoplin d.o.o. (Croatia) to the regulator have not been approved by the regulator yet, they are not included in the Group's result.

THE STRUCTURE OF THE PETROL GROUP'S GROSS PROFIT, INCREASED BY THE NET GAINS ON DERIVATIVES FOR COMMODITIES IN THE FIRST SIX MONTHS OF 2024 AND 2023 BY PRODUCT GROUPS, IN %

In the first six months of 2024, operating costs amounted to EUR 260.4 million, a year–on–year decrease of EUR 14.7 million, or 5 percent, mostly on account of the lower prices of energy commodities and better purchasing conditions than in the same period last year; the costs of services also dropped.

The operating costs to gross profit ratio, increased by the net gains on commodity derivatives, stood at 77.6 percent in the period concerned compared to 81.4 percent in the same period last year. The improvement of the ratio is a result of lower costs.

THE PETROL GROUP'S OPERATING COSTS IN EUR MILLION

THE PETROL GROUP	1–6 2022	1–6 2023	1–6 2024	Index 2024/2023	Index 2024/2022
Cost of materials	19.2	35.6	27.8	78	145
Cost of services	85.1	90.1	87.0	97	102
Labour costs	66.1	78.5	85.5	109	129
Depreciation and amortisation	45.3	47.2	49.4	105	109
Other costs	20.1	23.7	10.7	45	53
– of which net allowances for operating receivables	6.5	–3.3	2.6	–	40
Operating costs	235.9	275.1	260.4	95	110

Costs of materials stood at EUR 27.8 million in the first six months of 2024, a year–on–year decrease of 22 percent, mostly due to the lower costs of energy, while the costs of consumables increased, in particular due to the increased volume of operations.

Costs of services stood at EUR 87.0 million and were EUR 3.1 million, or 3 percent, lower than in the same period last year. Compared to the same period last year, the highest increase was recorded in the costs of professional services due to the higher costs of student work. The costs of fairs, advertising, the costs of subcontracting, insurance premiums, lease payments and reimbursements of costs to employees increased, whereas the costs of building and equipment maintenance, the costs of transport services and property management decreased, which is in accordance with the planned amount. In the last quarter of 2023, 55 service stations transferred from the CODO5 to the COCO6 system, which reduced the costs of service station operators but, in turn, increased labour costs.

Labour costs, which stood at EUR 85.5 million, increased by EUR 7.0 million, or 9 percent, compared to the same period last year. In Slovenia, Croatia and other markets, the costs increased due to wage indexation as a result of the regulatory interventions in the minimum wage systems. In Slovenia, the labour costs additionally increased due to the aforementioned change of the service station operation model (from CODO to COCO, consequently the costs of services are lower).

Amortisation and depreciation charge stood at EUR 49.4 million in the first six months of 2024, up by EUR 2.2 million, or 5 percent, year–on–year due to the higher investments in 2023, especially in the sales network in Croatia.

Other costs amounted to EUR 10.7 million and were EUR 13.1 million lower year–on–year. Net operating receivable allowances increased compared to the same period last year and a partial reversal of onerous contracts was recorded.

Net gains on derivatives amounted to EUR 7.4 million, a year–on–year decrease of EUR 21.9 million. The Petrol Group is exposed to price and volumetric risks arising from operations with energy commodities (petroleum products, natural gas, electricity, LPG). The Petrol Group manages price and volumetric risks primarily by aligning purchases and sales of energy commodities in terms of quantities as well as purchase and sales conditions, thus hedging its margin on energy commodities. Depending on the business model for each energy commodity, appropriate limit systems are in place that cap exposure to price and volumetric risks. The Petrol Group hedges petroleum product prices primarily with derivatives. Partners in this area include global financial institutions and banks or commodity suppliers; therefore, the Petrol Group considers the counterparty default risk as minimal. In electricity trading, the Petrol Group also concludes derivative financial instruments with financial institutions where the counterparty default risk is minimal, whereby it also considers the adopted market value limits. The value of financial transactions changes annually based on market price trends and needs for portfolio hedging.

⁵ CODO – Company Owned Dealer Operated

⁶ COCO – Company Owned Company Operated

Other revenue amounted to EUR 4.5 million, which is on a par with that from the same period last year. Other expenses stood at EUR 0.5 million, a decrease of EUR 0.5 million compared to the same period last year.

In the first six months of 2024, EBITDA stood at EUR 123.7 million, a year–on–year increase of EUR 7.3 million. Good results were achieved particularly from the sales of merchandise and services, electricity generation and natural gas sales to foreign countries, which compensated for the poor results from the sales of natural gas, the prices of which were regulated, in Slovenia (reimbursements for the damage resulting from price regulation in 2024 have not been approved) and in Croatia (a new selling price calculation methodology was introduced on 1 April 2023 for a period of one y ear; the Croatian regulator has not approved reimbursements, which is why they are not recorded in the result for the period) and additionally, the result was negatively influenced by the regulation of the prices of certain petroleum products in Slovenia, while in Croatia, better results were achieved in the segment of fuels and petroleum products because of a higher margin and more volumes sold, especially at service stations.

EBITDA IN THE FIRST SIX MONTHS OF 2024 COMPARED TO THE SAME PERIOD OF 2023 IN EUR MILLION

THE PETROL GROUP'S EBITDA BY PRODUCT GROUP IN THE FIRST SIX MONTHS OF 2024 AND 2023, IN %

Operating profit in the first six months of 2024 amounted to EUR 71.7 million, a year–on–year decrease of EUR 0.7 million.

Share of profit from equity accounted investees stood at EUR 0.6 million, a decrease of EUR 0.2 million compared to the same period last year.

Net finance expenses of the Petrol Group stood at EUR 5.7 million in the first six months of 2024, a year–on– year decrease of EUR 1.1 million. Net foreign exchange loss was EUR 4.3 million higher than in the same period last year, and net interest expenses were EUR 1.3 million lower. Net profit from futures was EUR 5.5 million higher year–on–year, while net other finance income was EUR 0.6 million higher.

Pre–tax operating profit in the first six months of 2024 amounted to EUR 66.6 million, a year–on–year increase of EUR 0.2 million.

Net profit for the first six months of 2024 was EUR 52.1 million, a year–on–year decrease of EUR 0.7 million, or 1 percent.

Total assets of the Petrol Group stood at EUR 2.5 billion as at 30 June 2024, a decrease of 7 percent compared to the end of 2023. Non–current assets totalled EUR 1.4 billion, the same as at the end of 2023, while current assets stood at EUR 1.1 billion, a decrease of EUR 175.3 million, or 14 percent, compared to the end of 2023, especially due to the lower operating receivables as a result of the lower prices of energy commodities.

Equity of the Petrol Group stood at EUR 920.8 million as at 30 June 2024 compared to EUR 923.0 million at the end of 2023.

Net debt stood at EUR 412.9 million, a decrease of EUR 63.6 million compared to the end of 2023.

As at 30 June 2024, the Petrol Group's working capital stood at EUR 11.3 million, a decrease of EUR 76.5 million compared to the end of 2023. Trade receivables and operating liabilities decreased and inventories slightly increased compared to the end of 2023. Changes in the working capital are influenced importantly by the volatility of petroleum product and non–petroleum oil prices and the seasonal effect.

On 22 December 2023, S&P Global Ratings reaffirmed Petrol d.d., Ljubljana's long–term BBB– and short–term A–3 rating with a stable outlook.

7.3 Activities for the compensation of damage resulting from energy price regulation in 2022–2024

With regard to the compensation for the damage resulting from the regulated prices of fuels in 2022, the Management Board of Petrol d.d., Ljubljana submitted proposals for amicable settlement of dispute to the State Attorney's Office of the Republic of Slovenia and Petrol d.o.o. (again) to the State Attorney's Office of the Republic of Croatia, in Slovenia in the amount of EUR 106.9 million and in Croatia in the amount of EUR 60 million.

In Slovenia, the proposal for amicable dispute resolution was rejected by the State Attorney's Office, as a result of which an action for the compensation for the damage resulting from the regulated fuel prices in 2022 in the amount of EUR 106.9 million was brought against the Republic of Slovenia on 16 May 2023. The Republic of Slovenia rejected cooperation in mediation and the proceedings have continued before the District Court in Ljubljana.

A response from the State Attorney's Office in Croatia has not yet been received.

On 4 December 2023, Petrol d.d., Ljubljana submitted a Petition for the review of the constitutionality and legality of Decree on setting prices for certain petroleum products and Decree amending that Decree and a petition for a temporary suspension of implementation. The petition was prepared in the light of the recent decision made by the Government of the Republic of Slovenia to decrease the limited margins on NMB–95 and diesel by 30 and 31%, respectively, as of 5 December 2023, although fuel margins are still substantially lower than in the comparable countries of Western Europe. Margin reduction represents a disproportionate pressure on the Company's operations and has an impact on the reduction of the funds available for the green transition. The petition was supplemented on 6 March 2024 in the light of the adopted Decree amending Decree on setting prices for certain petroleum products (Official Journal of the RS, No. 15/2024) which, despite the increased permitted margin amount by 1 cent, still forces petroleum product sellers to sell such fuel at prices below their cost price. The Constitutional Court rejected our petition for the review of the constitutionality, explaining that Petrol should address this issue in the context of compensation payment proceedings.

On 16 May 2023, Geoplin d.o.o. Ljubljana initiated an arbitration against Gazprom Export LLC on the grounds of a breach of the natural gas supply agreement. Due to a corporate guarantee being enforced by Gazprom Export LLC, Petrol d.d., Ljubljana joined Geoplin d.o.o. Ljubljana in initiating the proceeding. Pursuant to the decision made by the court of arbitration, the two arbitration proceedings must be conducted separately, hence the Geoplin d.o.o. Ljubljana proceeding against Gazprom Export LLC, continued within the initiated proceeding. Geoplin d.o.o. Ljubljana already filed the final arbitration claim on 13 May 2024 and Petrol d.d., Ljubljana will enter the arbitration subsequently.

On 7 July 2023, the Government of the Republic of Croatia passed a decree, setting a mechanism of compensation payments to natural gas suppliers for the difference between the purchase price for the relevant energy commodity and the price regulated by the natural gas pricing methodology. Geoplin d.o.o. (Zagreb) has already filed an application for the reimbursement in the amount of the price difference of EUR 20.9 million for the period of April–December 2023 and EUR 15.8 million for the period of January–March 2024. The claim is not recognised in the Petrol Group's financial statements because it has not been confirmed by the market regulator.

8. Operations by product groups

Below is a detailed presentation of the Petrol Group's operations in the first six months of 2024 broken down by product groups:

8.1 Fuels and petroleum products

In the first six months of 2024, the Petrol Group generated EUR 1,603.7 million in revenue with the fuels and petroleum products group.

In the period concerned, the Petrol Group sold 1,829.9 thousand tons of fuels and petroleum products, a decrease of 2 percent compared to the same period last year.

On the Slovenian market, we sold 738.9 thousand tons of fuels and petroleum products in the first six months of 2024, which is on a par with the volumes sold in the same period last year. Compared to 2023, sales of heating oil decreased the most due to both the high temperatures during the heating season and the transition to other energy commodities for heating. Sales of diesel fuel at service stations decreased as buyers in transit refuelled their tanks in Croatia instead of Slovenia because of the lower prices, while wholesale of diesel increased. Wholesale of petrol increased.

On SEE markets, we sold 696.3 thousand tons of fuels and petroleum products in the first six months of 2024, a year–on–year increase of 11 percent. Sales increased especially on the Croatian market where the regulated retail price was the lowest in the region, as a result of which buyers in transit stopped at service stations in Croatia instead of Slovenia and other neighbouring countries.

On EU markets, we sold 394.7 thousand tons of fuels and petroleum products in the first six months of 2024, a 20 percent decrease compared to the same period of 2023 when the majority of markets were short on petroleum products as a result of the embargo on imports from Russia.

Compared to the same period last year, sales to SEE markets in the structure of fuel and petroleum product sales by markets increased in the first six months of 2024, sales to EU markets decreased, while sales in Slovenia did not change (1–6 2024: Slovenia 40 percent, SEE markets 38 percent and EU markets 22 percent; 1–6 2023: Slovenia 40 percent, SEE markets 34 percent and EU markets 27 percent).

Of 1,829.9 thousand tons of fuels and petroleum products, 49 percent was sold in retail and 51 in wholesale.

Extended range of fuels sold at Barje service stations: CNG and HVO for business clients

At the end of June 2024, the Petrol Group's retail network consisted of 594 service stations, of which 318 in Slovenia, 202 in Croatia, 42 in Bosnia and Herzegovina, 17 in Serbia and 15 in Montenegro.

At the end of June 2024, the Petrol Group operated four concessions for LPG supply in Slovenia. In Croatia, Petrol d.o.o. has two LPG supply agreements, namely in Šibenik and Rijeka. In both countries, we supply LPG to our customers via gas holders and at service stations and in wholesale we supply LPG to customers as autogas and gas in cylinders. In Montenegro, we supply autogas and gas in cylinders to retail and wholesale customers; we continued expanding our operations via our own retail network and in wholesale. In Serbia, Petrol LPG d.o.o. Beograd continued expanding its operations in the region by exporting LPG to North Macedonia, Croatia, Montenegro and Bosnia and Herzegovina. In Serbia, we are currently unable to use the Smederevo terminal to supply gas using barges, which we have but have rented them out until we obtain concession for port activity. Until then, we will continue delivering gas to the terminal using tank cars and road tankers.

8.2 Merchandise and services

In the first six months of 2024, the Petrol Group generated EUR 305.9 million in revenue from the sales of merchandise and services.

On the Slovenian market, we generated EUR 203.9 million in revenue from the sales of merchandise and services in the first six months of 2024, an increase of 8 percent compared to the same period last year.

On SEE markets, we generated EUR 101.9 million in revenue from the sales of merchandise and services in the first six months of 2024, a year–on–year increase of 37 percent.

Revenue increased particularly in the segment of tobacco product and food sales in Slovenia and SEE markets. The good sales resulted mostly from the renewed range of merchandise sold, sales to buyers in transit who stopped at service stations in Croatia instead of Slovenia and closure of other shops in Croatia on Sundays.

Significant activities in sales of fuels and petroleum products and merchandise and services

In 2024, we continued optimising the retail network – we optimised work shifts and activated walk–up windows.

In Slovenia, minor rearrangements of service stations were actively in progress with the purpose of optimising the range of products and expanding the gastro segment; we also introduced exposure of attractive merchandise

and continued offering attractive merchandise to our loyal customers under the loyalty programme. We reorganised 34 service stations and 29 more are in progress. Additionally, we carried out activities to ensure sufficient stock of merchandise and prepare measures to manage shortages in this area.

With the digital tools, we monitored adequacy of stock and tidiness of service stations. With targeted inspections and implementation activities, we improved the stock and eliminated the established deviations. We included outsourcers in the performance of activities in order to obtain information from customers.

In the B2B segment, we place great emphasis on fostering good business relationships and working successfully with our customers, which has been particularly important in the time of the regulated retail prices and margins of fuels. We attract new customers and offer new products and package sales to those who are already with us. We provide for appropriate financial insurance.

We consider cooperation based on understanding and flexibility as a fundamental principle in this. We are becoming a connecting link in the wider ecosystem of sales segments and industry. With a comprehensive range of energy sources and solutions, we offer support to existing and new customers in the transition from traditional energy sources (fossil fuels) to cleaner, environmentally friendlier and healthier renewable energy sources. We design a personalised range of products and services for existing and new customers based on their needs. We use a tool for efficient customer relationship management (CRM7), which helps us to efficiently manage and build relationships with our customers.

In Slovenia, we completed a comprehensive reconstruction of the Ljubljana Barje AC South service station in January 2024 and the Ljubljana Dunajska 70 service station in the first half of April. The latter has received a new visual appearance and concept that reflects Petrol's vision of a service station of the future. The renovation of the interior of the Ljubljana Črnuče–Štajerska service station ended in June; the roof was also renovated. In May, we started renovating the service stations which were flooded in August 2023 (Otiški Vrh, Nazarje and Žerjav) and we also started a comprehensive reconstruction of the Ajdovščina Goriška service station. In Croatia, the renovation of the Crodux's Zadar Gaženica service station started at the end of May and the renovation of the Varaždin Gospodarska service station started in June. In Serbia, the renovation of the Petrovaradin service station was completed at the start of April. The construction of a new service station Inđija, Vojvode Putnika, started; the service station will receive a new visual image of Petrol's service station of the future. In Montenegro, a comprehensive renovation of the Podgorica Mitra Bakića started at the end of April.

We implement the legally required projects and risk mitigation projects in all Petrol's warehouses.

⁷ CRM – Customer Relationship Management

8.3 Energy and solutions

In the first six months of 2024, the Petrol Group generated EUR 1,036.3 million in sales revenue in the energy and solutions segment.

The Petrol Group follows its 2021–2025 strategy, which has set the path for energy transition towards a green future. A large part of this transition is assumed by Energy and Solutions with its products and team of experts.

The Energy and Solutions segment includes products and services offered in the following fields:

• ∙ Energy solutions (systems of energy and environmental management of buildings, water systems, efficient lighting systems, district energy, water treatment, industrial solutions, and energy solutions for households and businesses),
• ∙ Heating systems,
• ∙ Natural gas distribution,
• ∙ Energy commodities (electricity sales and trading, natural gas sales and trading),
• ∙ Mobility, and
• ∙ Electricity generation.

8.3.1 Energy solutions

Energy renovation of buildings

We help public partners (municipalities, ministries, etc.) achieve a more efficient and environmentally friendly energy profile of buildings through performance contracting – public–private partnerships. Our solutions ensure the optimal use of energy from renewable sources in all types of buildings, while meeting the relevant user standards. We find an optimal investment solution for energy renovation and take care of the whole energy renovation process. After the renovation, we manage buildings throughout the contract period, thereby ensuring savings.

In the first six months of 2024, we continued operating and optimising all buildings in the context of the signed concession agreement and preparing new sales and investment projects which will be implemented in 2024 and 2025. The Municipality of Novo mesto selected us for the implementation of ventilation in three buildings which will be done in the second half of 2024.

Efficient public lighting

We are replacing old energy–wasting lights with modern LED luminaires, which direct light only where it is needed; this can reduce energy consumption by up to 80 percent. Through this comprehensive approach, we improve the quality of maintenance, general and traffic safety, as well as the service life of public lighting. At the same time, we reduce energy, maintenance and operational costs and, most importantly, light pollution.

In the first six months of 2024, we provided services of general economic interest on all projects in the field of public lighting on all markets where we are present. We regularly fulfil our contractual obligations in the existing projects and achieve, or even exceed, the contractually ensured electricity savings. We signed an annex for the extension of concession with the Municipality of Molve in Croatia. The works have already started. We are also continuing the development of new investment projects for implementation in this and next year.

Optimisation of drinking water supply systems

We endeavour to ensure the quality of water resources in cities, as well as diligent and efficient water management. We provide our public partners with comprehensive support in improving the efficiency of the water supply system and help identify water losses and advise on measures to reduce these. This provides operators with greater reliability, improves their efficiency and reduces risks.

In the first six months of 2024, we continued the activities on what is currently the largest operations optimisation and drinking water savings project in Croatia (for Vodovod Slavonski Brod and Hrvatske vode) and two projects in Slovenia.

Optimisation of district heating systems

District heating is a key factor of the green transition which is a long–term process and includes a comprehensive transformation of the society with the goal to achieve climate neutrality.

Heat generation is one of the largest energy consumers and a field where energy efficiency is one of the goals. The main guidelines for the development of smart district heating systems are to reduce energy consumption, ensure cost–efficiency, and take measures to increase renewable energy sources through the simultaneous digitisation of the system. Through forecasting and mathematical modelling, we can determine the needs of district heating systems, providing a comprehensive and intuitive overview of the situation at all points in the network and the impact of system changes on the primary energy source. Through digitalisation, we ensure that heat losses are reduced and system operating costs minimised, while maximising efficiency, supporting decarbonisation and ensuring grid optimisation.

We use smart networks to develop district heating systems as a part of the infrastructure of smart cities – smart production, distribution and consumption of heat. Using advanced analytics for real–time operation and software tools, we optimise measurable data.

In the period concerned, we fulfilled our contractual obligations to HEP (Hrvatska elektroprivreda) on district heating projects (Zagreb, Osijek). We implemented regular maintenance work. A hydraulic model on the district heating system in Maribor was updated with new data of the geographic information system (GIS).

A hydraulic model was successfully upgraded to a new TERMIS software version District Energy in Energetika Ljubljana's district heating system.

The monitoring of the Koper, Maribor, Koper, Maribor, Železniki and Trbovlje systems has continued. Activities on the preparation of projects for 3 cities in Serbia have started.

Wastewater treatment

Ensuring safe and reliable water supply is one of the key challenges of the 21st century; therefore, the quality of water resources is of utmost importance. We build and operate industrial and municipal wastewater treatment plants for our public partners (communities) and manage concessions for performing the public utility service of treating municipal wastewater.

The procedures of phase II of the concession agreement or upgrade of the Sežana municipal purification plant from 6,000 PE to 12,000 PE and underway; phase II is expected to be completed this year. We actively cooperate in the preparation of new projects in the industry and after–sales services for the existing clients. Activities have begun for the installation of a new boiler room and the start of the sludge drier in the Ihan treatment plant, which is planned for the second half of 2024.

As a wastewater treatment operator, we also take part in the installation and rehabilitation of small treatment plants at Petrol's service stations in Slovenia, and Croatia in the context of Crodux station renovation works, and the operation and maintenance of all small municipal treatment plants at service stations in Slovenia and Croatia.

Industrial solutions (closed economic areas)

In the field of industrial solutions, we operate two closed economic areas situated in Ravne and Štore. In Ravne, we distribute electricity, produce and distribute compressed air, distribute cooling water, drinking water, supply technical gases (oxygen, nitrogen, argon) to consumers and treat municipal water. In Štore, we distribute electricity and natural gas, produce and distribute compressed air, distribute drinking water and cool, treat and distribute industrial water. In both closed economic areas, we pay special attention to preparing and ensuring comprehensive energy solutions for all consumers.

In the first six months of 2024, we focused primarily on preparing and submitting the application for the extension of the closed electricity distribution status in Ravne and Štore.

Energy solutions for households and businesses

In the field of energy solutions for businesses we develop comprehensive solutions for an efficient energy use, higher share of renewables, and efficient system management. We help customers optimise production processes, reduce costs and achieve carbon footprint reduction commitments. With our comprehensive energy solutions, we are a partner to customers on their way to sustainable transition and energy transformation.

Our comprehensive energy solutions for the production of electricity from solar power and its storage, as well as for heating and cooling, improvement of energy performance in buildings, efficient lighting, energy self–sufficiency and even for the electric vehicle fleet deliver instant savings to customers. We also offer various financial models for the implementation of such solutions which enable customers to invest their capital in their core activity, while at the same time entering the path of the green transition.

High uncertainty on the energy market and volatility of energy prices has made many companies more aware of the importance of secure energy supply and modern energy solutions which reduce their dependency on one source. In the segment of B2B energy solutions, Petrol continuously develops new and advanced technological solutions which enable customers to increase their cost efficiency and improve competitiveness.

The start of 2024 brought significant changes to the electricity market, options to obtain grants, and revealed business customers' willingness to implement advance energy solutions. The implementation of energy solutions is becoming an increasingly complex process which requires adequate configuration and management of energy systems. Tailoring comprehensive solutions to individual customers, digitalisation and streamlining processes are key for a successful sustainable transition without any additional risks.

In the segment of energy solutions for households, we are focused primarily on offering heat pumps and solar power plants which can materially reduce the costs of energy use in residential buildings and help to improve the carbon footprint. Our solar power systems include traditional and hybrid solar power plants with built–in electricity storage system.

In addition to sales, we focused first and foremost on process optimisation and digitalisation. We started developing a portal for customers where they can see the project status and exchange documentation which will be completed in the first half of this year.

Due to the change of legislation (termination of annual billing and introduction of a new network act), we were faced with a decline in demand at the start of 2024 which we aim to mitigate with active advertising via all channels and presenting a new product which will mitigate the effect of the terminated annual billing and which, in addition to the solar power plant and battery storage capacity, includes electricity for a period of 7 years. At the start of June, Borzen published high support (up to 40 percent of investment compared to previous up to 25 percent) for solar power plants with battery storage capacity, which is an additional incentive for investors.

8.3.2 Heating systems

District heat supply consists of heating systems where heat is generated in one or more boiler rooms and distributed to end–customers via a hot–water network. Heat distribution systems are now considered to be one of the most reliable and, in terms of the environment and costs, acceptable systems for supplying heat to end–customers. Buildings supplied via a district heating system do not require their own heating source, with the system itself providing the following supply advantages: greater energy efficiency, environmental protection, easy operation and maintenance, reliability, comfort and convenience, lower investment costs and lower operating costs and investment maintenance costs. Climate change legislation encourages the connection to district heating. On the other hand, higher outdoor temperatures and energy efficiency measures are reducing heat consumption. The Petrol Group ranks third in the Slovenian market among the 50 heat distributors in terms of the market share of distributed heat sales.

Heat generation and distribution is a regulated activity under the Heat Supply from Distribution Systems Act (ZOTDS), regardless of the primary energy input. According to this Act, heat distributors must ensure that at least 50 percent of heat is produced from renewable energy sources (biomass, geothermal energy, etc.) or that a minimum of 75 percent is produced from the high–efficiency cogeneration of heat and electricity, or 50 percent as a combination of heat from these two sources. The sales prices for heat are also regulated. The Energy Agency of the Republic of Slovenia monitors heat generation and distribution, as well as heat prices.

In 2023, several regulations were imposed in Slovenia in the field of heat pricing; the price of natural gas was capped. The Government of the Republic of Slovenia extended the cap until 30 April 2024.

In the first six months of 2024, we operated 36 district heating systems in Slovenia, of which 18 are concessions, that is, concession agreements have been signed for their operation with municipalities. 15 district heating systems are proprietary and three are market distribution systems.

In the first six months of 2024, the Petrol Group sold 68.3 thousand MWh of heat in the heating systems segment, which is 2 percent less than in the same period in 2023, mainly because of the higher temperatures during the heating season compared to last year. In addition, we generated 9.3 thousand MWh of thermal energy in the context of energy solutions.

8.3.3 Natural gas distribution

At the end of June 2024, the Petrol Group operated 31 concessions for natural gas supply in Slovenia. In Serbia, we supply natural gas to the municipalities of Bačka Topola and Pećinci and three municipalities in Belgrade. Since the end of 2018, the Petrol Group has also been present in the Croatian market where Zagorski metalac d.o.o. distributes natural gas in certain municipalities of the Krapina–Zagorje County and the Zagreb County.

Activities in all markets are focused primarily on completing minor infrastructural projects and maintenance, which will facilitate cost optimisation. The mild winter resulted in lower natural gas consumption. In Slovenia, natural gas consumption was further decreased due to the transfer of customers to other energy commodities as a result of the new draft Energy Act EZ–2 which prohibits the installation of new condensing boilers at household users.

In January 2024, we started designing a connecting gas pipeline for the connection of the distribution network to the transmission gas network in the municipality of Sežana.

In the first six months of 2024, the Petrol Group distributed 670.8 thousand MWh of natural gas, a year–on–year decrease of 4 percent. The lower distribution was affected by the tighter situation in the energy segment, EU's promotion to reduce gas consumption and the higher average temperatures during the heating season.

8.3.4 Energy commodities

Natural gas sales and trading

The security of natural gas supply in the EU was stable due to the historically warm period from January to May 2024. At the end of June 2024, EU storage facilities were around 75 percent full. The supply of LNG in the EU was stable. In the period concerned, the majority of EU member states still had the early warning level in place in line with the Act on the plan for the emergency situation in the supply of natural gas.

At the end of March 2024, the Council of the EU formally adopted the recommendation that encourages member states to continue reducing their gas consumption until 31 March 2025, by at least 15 percent compared to their average consumption in the period from 1 April 2017 to 31 March 2022.

The period of the maximum permitted retail price of gas ended on 30 April 2024. Since 1 May 2024, market prices of natural gas also apply to all households, common households and heat producers and distributors.

At the end of June 2024, the Petrol Group had 61 thousand natural gas customers (excluding Geoplin Group customers). Sales to end–customers in the first six months 2024 amounted to 4.7 TWh of natural gas. Due to the favourable price ratios, we increase natural gas trading on Italian, Austrian, Croatian and Slovenian markets and sold 5.5 TWh from trading.

Electricity sales and trading

In the first six months of 2024, the Petrol Group continued ensuring secure supply of electricity to all segments of end customers. In the segment of household consumers, regulation of retail prices is still in place in 2024; the capped electricity price applies to 90 percent of household consumption and the supplier's market price for the remaining 10 percent. Suppliers suffer business loss because of the sales of electricity to business users at the regulated price which is below the supplier's cost for the household segment. In accordance with the Decree on the determination of compensation to electricity suppliers for 2024, we are entitled to the compensation for such loss.

In the first six months of this year, the Petrol Group was also active in the development of new products where we prepared a new self–supply model and a new model of electricity supply to large business customers for a longer period of time (5 or 7 years). In line with the long–term strategy, we are also active in the development of new markets where, in addition to Slovenia and Croatia, we are laying foundations for electricity supply in Serbia and Bosnia and Herzegovina. In May 2024, we started supplying electricity to the first business customers in Serbia.

The process of implementing a new electricity portfolio management system is underway. It will enable faster and more efficient processes and we have also implemented a new app which will provide large business customers with direct market access for electricity purchases. The app will be launched in the second half of this year.

The Petrol Group also carries out trading activities in the European electricity wholesale market where we generate added value using our in–house know–how and trading infrastructure. We increased the volume of trading in SE Europe. We are currently in the process of obtaining access to the Greek exchange. The beginning of 2024 was most of all marked by the above–average temperatures, low offtake and high renewable generation which resulted in a drop of prices on the wholesale market. In the second quarter of the year, the prices increased because of greater demand resulting from high temperatures and lower hydropower plant generation. This trend is expected to continue at least by the end of August and the prices in SE Europe will be higher than in the western Europe.

In the first six months of 2024, sales to end customers stood at 1.5 TWh, a year–on–year decrease of 3 percent. In the first six months of 2024, the volumes sold in trading stood at 3.8 TWh, and we sold another 0.5 TWh of electricity in the context of the retail portfolio management.

8.3.5 Renewable electricity generation

Globally, renewable energy generation is undoubtedly one of the key areas for sustainable development and an important pillar of the Petrol Group's development into a modern energy company. Developments in the energy markets are an important indicator of the importance of having our own long–term, secure sources of energy generation. At the same time, investments in renewable electricity generation make a tangible contribution to strengthening the self–sufficiency and energy transition of households, the economy and the country.

The Petrol Group operates two wind power plants in Croatia (Glunča and Ljubač), which generated 61.4 thousand MWh of electricity in the first six months of 2024. We are in the final stage of developing the third wind power plant (Dazlina) for which the final Energy Permit was obtained in March 2024 for a total connected load of 31 MW. The development of a wind power plant project in Slovenia is underway.

In Bosnia and Herzegovina and Serbia, we operate six small hydropower plants, which in total generated 13.8 thousand MWh of electricity in the first six months of 2024.

Solar power plants in Croatia (Suknovci, Vrbnik and Pliskovo), which were built in 2023, have already generated 8.1 thousand MWh of electricity this year.

In the context of the Petrol Green project in Slovenia, we installed photovoltaic power plants on 85 of our facilities in 2023 with the additional installed capacity of 4.3 MW. This year, we plan to install an additional 60 solar power plants on our own buildings. At the moment, we expect to receive co–financing for at least 20 locations in the context of the public call by Borzen. The first phase of the Petrol Green project is in preparation in Croatia and the first solar power plant in the Republic of Serbia.

The Petrol Group is accelerating the planning and development of new renewable energy projects in both Slovenia and the wider region. In addition to providing green energy, which will be increasingly in demand, we are harnessing the potential of natural energy resources in an economically efficient and environmentally friendly way by managing, building and developing RES power plants.

In the first six months of 2024, the Petrol Group produced a total of 83.7 thousand MWh of electricity in the area of energy commodity production, which is 10 percent less than in the same period in 2023, especially due to the unfavourable hydrological conditions. The Petrol Group also produces electricity as part of Energy Solutions and Heating Systems and for own needs (the Petrol Green project).

8.3.6 Mobility

E–mobility

The visibility of the Petrol charging station network has been increasing throughout the region among both domestic users and foreign providers of charging services, who provide their users with charging in the Petrol network in Slovenia and Croatia.

By having developed the e–mobility services in the first six months of 2024, the Petrol Group:

• ∙ Transmitted nearly 2.7 thousand MWh of electricity for e–vehicle charging,
• ∙ Recorded 3,324 new users,
• ∙ Completed the pilot project of setting up payment terminals to ensure the use of standard payment means at charging stations and started equipping certain locations,
• ∙ Expanded the charging infrastructure network with 17 new charging stations operated by Petrol,
• ∙ More than doubled the volume of roaming charging compared to the same period in 2023,
• ∙ Renewed the package offer of cheaper charging available on our website.

At the end of June 2024, Petrol's charging network included 514 operated charging stations.

Charging infrastructure

The development of charging infrastructure relies on key partnerships with the largest energy companies, municipalities and transport businesses in Central and South–Eastern Europe in the framework of EU projects co–financed by the European Commission.

In the final phase of the MULTI–E project, we are expanding our presence on the Slovenian and Croatian markets. In the first six months of this year, we completed all electrical works at 4 motorway locations and for ultra– fast charging stations in Croatia. In Slovenia, we successfully launched ultra–fast charging stations at both Barje service stations, which are the first motorway locations in Slovenia with a roof above the charging stations. At the Tepanje West service station, we set up an Alpitronic ultra–fast charging station and at Supernova Novo mesto location we upgraded the charging park with two additional ABB ultra–fast charging stations which will later be equipped with a payment terminal.

ADDITIONAL ULTRA–FAST CHARGING STATIONS AT CHARGING STATIONS WITH ROOF AT BARJE SUPERNOVA NOVO MESTO LOCATION SERVICE STATIONS

In the context of the European CROSS–E cross–border electrical charging project, Allego, Emobility Solutions, GreenWay and we were selected in April to install high–powered charging points across Europe. The project was selected by the European Commission and is financially supported with the CEF8. In the context of the project, we plan to instal 105 ultra–fast charging points on motorway locations in Slovenia and Croatia by the end of 2026.

⁸ CEF – Connecting Europe Facility

We have performed various additional activities with the purpose of spreading the importance of the impact on the development of sustainable transport and reducing the carbon footprint. In cooperation with the Ljubljana Passenger Transport (LPP) we implemented the first test charging of two electric BYD and Mercedes busses at charging stations with a capacity of 300 and 350 kW at the Barje North service station.

THE FIRST TEST CHARGING OF TWO ELECTRIC BUSSES OF THE LJUBLJANA PASSENGER TRANSPORT (LPP) AT THE BARJE NORTH SERVICE STATION

In addition to our own investments, we expanded the charging infrastructure network through sales projects by selling 38 charging stations to private users, 20 to business customers in Slovenia and Croatia, and 2 in Serbia.

Mobility services

In the area of mobility services, we offer comprehensive mobility services and develop products related to new concepts and sustainable mobility types. We offer market fleet management services, leasing and rentals and management, analytics and optimisation of vehicle fleet. We aim to provide companies and municipalities with the most suitable type of mobility for them and be a partner in the green transition with through fleet electrification. We entered the Croatian market in 2023.

In the field of long–term leasing, we renewed and extended cooperation with the municipalities of Gornji Grad and Ljubno, Solčava, Municipality of Nazarje and Rečica ob Savinji, Braslovče, Bled, Ribnica and Jesenice. We completed the international cooperation with the SCM Adria corporation and have been extending our cooperation with Knauf Insulation, Schindler Slovenija, Metrob and Sava Medical. In Croatia, we started cooperating with William Fricke.

In the field of short–term rentals, we entered into new cooperation agreements with Iskraemeco Middle East FZE, GP Sistemi and ReCatalyst, which will use our services to supplement their vehicle fleets. We also established new cooperation with brokers for international reservations. We upgraded our website for car rental reservations (ATET/rent) by adding the option of prepayment and the money refund conditions in various stages of reservation cancellation which provides customers with greater flexibility in vehicle rental.

Development in the field of mobility services

In the field of fleet management and related mobility services digitalisation, we signed a contract for fleet management platform development (FMG9 platform) in the first quarter of 2024. A digitalised and comprehensive solution

⁹ FMG – Fleet management

is vital for strategic expansion of fleet management activity on the domestic and foreign markets and for the activation of new, advanced mobility services.

9. Investments

In the first six months of 2024, we earmarked EUR 27.6 million net for investments in property, plant and equipment, intangible assets and long–term financial investments, of which 55.8 percent for investments in the retail sale of fuels of petroleum products and merchandise and services, 24.3 percent for investments in the energy transition and digitalisation, 11.6 percent for logistics, and 8.3 percent for investments in other infrastructure.

In the first six months of 2024, 19.6 percent of the investment budget was earmarked for the energy transition.

BREAKDOWN OF THE PETROL GROUP'S INVESTMENTS IN THE FIRST SIX MONTHS OF 2024, IN %

COMPREHENSIVE RENOVATION OF THE DUNAJSKA 70 SERVICE STATION

10. Risk management

The Petrol Group manages risks using a comprehensive risk management system to ensure that the key risks the Company is exposed to are identified, assessed, managed, utilised, and monitored. In doing that, we aim to develop a risk–awareness culture to ensure better control over the risks and better information for decision– making at all levels of the Group's operations. Risk management concerns each Petrol Group employee who is, as a result of their decisions and actions, exposed to risks on a daily basis while carrying out their work assignments and responsibilities.

In line with its 2021—2025 strategy, the Petrol Group tailors its business objectives according to its risk management policies and risk appetite.

At Petrol d.d., Ljubljana, we keep a close eye on events in the business environment and will take the necessary measures to protect the interests of the Company in the future.

Petrol's risk model comprises 32 risk categories divided into three large groups:

• ∙ Environmental risk,
• ∙ Performance risk, and
• ∙ Climate risk.

Based on the last risk assessment, the most relevant and probable financial risks are the credit risk, the price and volumetric risks, and the foreign exchange risk.

In addition to the main financial risks, the most relevant and probable risks include economic environment risks, business decision–making risks, financial environment risks, process risks, strategic decision–making risks, IT system risks, interest rate risks, legislation and regulation risks, security and protection risks, and information risks.

The Petrol Group is facing the new challenge of integrating and segmenting the risks associated with a comprehensive ESG approach. The first step towards integrating an integrated ESG approach to risk, which we started in 2022, is the integration of environmental and climate risks into the Petrol Group's overall risk management. We did not conduct a new risk assessment in 2023 as we received an ESG rating in 2023 that is better than some comparable companies in Europe.

By being aware that the business risk management can only be discussed once the risks are reasonably integrated in business decisions, we started an overall update of the business risk management system at the Petrol Group at the end of 2023 which is expected to be completed by the end of 2024, with system digitalisation following in 2025. The updated system will enable identifying risks into more detail, estimating them more accurately, identifying and evaluating the measures needed to manage the identified risks, and a quarter–yearly reporting on the Petrol Group's business risks. This will enhance the risk awareness culture and help the Petrol Group to be more resilient to the assumed risks and better respond to them.

The first phase of the business risk management system updating – the setting up of the business risk register – was completed in the first quarter of 2024. In the second quarter of the year, we started preparing rules to categorise risks in individual groups and listing measures to mitigate individual risks and assessing risks. In the context of the business risk management system update, we will implement the environmental and climate risk assessment in 2024.

Price and volumetric risk and foreign exchange risk

The Petrol Group's business model includes energy commodities, such as petroleum products, natural gas, electricity, and liquefied petroleum gas, exposing the Group to price risks, volumetric risks, and foreign exchange risks arising from the purchase and sale of such products.

The Petrol Group purchases petroleum products under international market conditions, pays for them mostly in US dollars and sells them in local currencies (mostly in EUR). As a result, the Group is exposed to both the price risk – changes in the prices of petroleum products –and the foreign exchange risk – changes in the EUR/USD exchange rate – while pursuing its core line of business. The Petrol Group manages volumetric and price risks to the largest extent possible by matching suppliers' terms of procurement with the terms of sale applying to customers. Any remaining open price or foreign exchange positions are closed through the use of derivatives, in particular commodity swaps in the case of price risks and forward contracts in the case of foreign exchange risks.

The Petrol Group is exposed to price and volumetric risks in operations with electricity and natural gas. In the second quarter of 2024, the prices of electricity increased slightly, but have remained stable.

The Petrol Group manages the price risks arising from the volatility of market prices through a range of limit systems defined based on a business partner, value at risk and volumetric exposure and adequate processes of monitoring and control thereof. Additionally, the Petrol Group also regularly monitors the adequacy of the limit systems used and updates and supplements them when necessary.

Credit risk

In the recent period, credit risk was assessed as the most important among all risks.

The operating receivables management system provides us with efficient credit risk management. As part of the regular receivables management processes, we constantly and actively pursue the collection of receivables, a process that became even more intense since the beginning of the COVID–19 pandemic due to the exceptional economic situation, and has continued to be so in the last two years as a result of the high prices of all energy commodities. The insurance scheme allows keeping track of the Group's needs in the field of credit risk insurance as the market conditions evolve. A great deal of work is put into the management of receivables from all customers in Slovenia, and significant attention is also devoted to the collection of receivables in the SE Europe markets, where the solvency and payment discipline of the business sector differ from those in Slovenia. Receivables are systematically monitored by portfolio, region and organisational unit, as well as by credit risk assessment, level of insurance and individual customer. In addition, we introduced centralised control over the received credit insurance instruments and collection.

We estimate that the Petrol Group has been managing credit risk satisfactorily. Our estimate is based on the type of products that we sell, the market share, a large customer base, a high number of security instruments, a high volume of secured receivables, and a low level of overdue receivables. 70 percent of receivables from legal entities are secured, with credit insurance and offsetting against trade liabilities being most widely used insurance instruments, together accounting for 90 percent). Additionally, despite the tightened macroeconomic situation in the last three years resulting from the pandemic, war and energy crisis, the balance of overdue receivables has not deteriorated notably and has stayed at a satisfactory level of 14 percent.

Liquidity risk

Petrol's strong position is confirmed by its long–term BBB– credit rating with a stable outlook, which was reaffirmed by S&P Global Ratings in December 2023. This investment–grade rating enables us to tap international financial markets more easily and at the same time represents an additional commitment to successful operations and the deleveraging of the Petrol Group. We are following the relevant S&P Global Ratings methodology in the management of liquidity risks.

The Petrol Group's liquidity position has remained stable in the first six months of 2024, both at the level of the Group and individual subsidiaries. We have ensured liquidity of the Petrol Group through an appropriate structure and volume of long–term and short–term credit lines. We ensure a stable liquidity position of the Petrol Group which, in the case the general economic situation deteriorates, provides us with smooth operations and an appropriate liquidity structure under the S&P Global Ratings criteria. Risks are managed with a dispersed portfolio of credit lines, regular reviews of the market situation on the financing market, appropriate processes of financial planning and prudent investment planning.

The Petrol Group continues to work intensively, paying close attention to cash flow management of the Petrol Group, especially as regards the planning of cash inflows from layaway sales, this being the main source of liquidity and, consequently, credit risks. Furthermore, we pay close attention to the internal liquidity management in the Petrol Group companies.

The Petrol Group settles all its liabilities as they fall due. This is possible thanks to its relatively low debt levels and strong liquidity position.

Interest rate risk

Interest rate risk is the risk of a negative impact of changes in market interest rates on the Petrol Group's operations. The Petrol Group's exposure to interest rate risk arises from a potential change in the EURIBOR reference rate. The Petrol Group regularly monitors its exposure to interest rate risk. 92 percent of the Group's non–current financial liabilities contain a variable interest rate that is linked to the EURIBOR.

In the first six months of 2024, high EURIBOR interest rates were still in place. These changes can be attributed to various macroeconomic factors, including changes of the central bank's policies, inflationary pressures and the market dynamic.

The Petrol Group also manages the interest rate risk by concluding traditional derivative financial instruments (interest swaps and forward interest rate agreements). 97 percent of the concluded and drawn long–term loans of the Petrol Group have a variable interest rate to protect its interest position.

The interest rate risk referring to short–term financial resources is managed in the context of the Petrol Group's liquidity risks and policies.

11. Share and ownership structure

In the first six months of 202410, prices of shares on the Ljubljana Stock Exchange mostly increased compared to the end of 2023. The SBITOP (the Slovenian blue–chip index, which is used as a benchmark and provides information on changes in the prices of the most important and liquid shares traded on the regulated market and which includes Petrol shares) stood at 1,577.93 at the end of June 2024 and was up by 25.9 percent compared to the end of 2023 when it stood at 1,253.41. In the same period, the price of the Petrol share increased by 27.5 percent. In terms of the Petrol share trading volume on the Ljubljana Stock Exchange in the period between January and June 2024 (including batch trading), which stood at EUR 14.5 million, the Petrol share was ranked 4th among the shares traded on the Ljubljana Stock Exchange. In terms of market capitalisation, which stood at EUR 1.2 billion at the end of June 2024, the Petrol share was ranked 3rd on the Ljubljana Stock Exchange, accounting for 10.8 percent of the total Slovenian stock market capitalisation on the same date.

BASE INDEX CHANGES FOR PETROL D.D., LJUBLJANA'S CLOSING SHARE PRICE AGAINST THE SBITOP INDEX IN THE FIRST SIX MONTHS OF 2024 COMPARED TO THE END OF 2023

10 Sources of data for chapter Share and ownership structure: Ljubljana Stock Exchange website, Petrol share register, statements of the Petrol Group for January–June 2024.

PETROL SHARE CLOSING PRICE AND TRADING VOLUME ON LJSE IN THE FIRST SIX MONTHS OF 2024

In the first six months of 2024, the closing Petrol share price ranged between EUR 23.10 and 29.70 per share. The average price for the period stood at EUR 26.85 per share; at the end of June 2024, it stood at EUR 29.70. The Petrol Group's earnings per share (EPS) of the majority shareholders stood at EUR 1.20 and the Petrol Group's book value per share was EUR 22.07. As at 30 June 2024, Petrol d.d., Ljubljana had 21,472 shareholders. At the end of June 2024, 12,542,313 shares, or 30.1 percent of all shares, were held by foreign legal entities or natural persons. Compared to the end of 2023, the number of foreign shareholders slightly increased.

OWNERSHIP STRUCTURE OF PETROL D.D., LJUBLJANA AS AT 30 JUNE 2024, IN %

CHANGES IN THE OWNERSHIP STRUCTURE OF PETROL D.D., LJUBLJANA (COMPARISON BETWEEN 30 JUNE 2024 AND 31 DECEMBER 2023)

		30 June 2024	31 December 2023
PETROL d.d., LJUBLJANA	No. of Shares	in %	No. of Shares	in %
Slovenski državni holding, d.d.	5,299,220	12.7	5,299,220	12.7
Republic of Slovenia	4,514,005	10.8	4,513,980	10.8
Kapitalska družba d.d. together with own funds	3,566,010	8.5	3,594,617	8.6
Domestic institutional investors and other legal entities	5,978,907	14.3	6,030,856	14.5
Foreign legal entities	12,496,640	29.9	12,491,327	29.9
Private individuals (domestic and foreign)	9,256,778	22.2	9,181,560	22.0
Own shares	614,460	1.5	614,460	1.5
Total	41,726,020	100.0	41,726,020	100.0

TEN LARGEST SHAREHOLDERS OF PETROL D.D., LJUBLJANA AS AT 30 JUNE 2024

Shareholder	Address	Number of shares	Holding in %
1 J&T BANKA A.S. – FIDUCIARNI RAČUN	Sokolovská 700/113A, 18600 Praha, Czechia	5,333,200	12.78
2 SDH, D.D.	Mala ulica 5, 1000 Ljubljana	5,299,220	12.70
3 REPUBLIKA SLOVENIJA	Gregorčičeva ulica 20, 1000 Ljubljana	4,514,005	10.82
4 KAPITALSKA DRUŽBA, D.D.	Dunajska cesta 119, 1000 Ljubljana	3,452,780	8.27
5 OTP BANKA D.D. – CLIENT ACCOUNT – FIDUCI	Domovinskog rata 61, 21000 Split, Croatia	2,916,276	6.99
6 ERSTE GROUP BANK AG – PBZ CROATIA OSIGUR	Am Belvedere 1100 Wien, Austria	1,707,944	4.09
7 VIZIJA HOLDING, D.O.O.	Dunajska cesta 156, 1000 Ljubljana	1,582,480	3.79
8 VIZIJA HOLDING ENA, D.O.O.	Dunajska cesta 156, 1000 Ljubljana	1,350,700	3.24
9 MUSTAND ENERGY LIMITED	Klimentos 41–43, Klimentos Tower, Nicosia, Cyprus	796,000	1.91
10 PERSPEKTIVA FT D.O.O.	Dunajska cesta 156, 1000 Ljubljana	725,240	1.74

SHARES OWNED BY MEMBERS OF THE SUPERVISORY AND MANAGEMENT BOARD AS AT 30 JUNE 2024

Name and Surname	Position	Shares owned	Equity share in %
		5,897	0.0141
External members		4,137	0.0099
Janez Žlak	President of the Supervisory Board	0	0.0000
Borut Vrviščar	Deputy President of the Supervisory Board	4,137	0.0099
Aleksander Zupančič	Member of the Supervisory Board	0	0.0000
Alenka Urnaut	Member of the Supervisory Board	0	0.0000
Mladen Kaliterna	Member of the Supervisory Board	0	0.0000
Mário Selecký	Member of the Supervisory Board	0	0.0000
Internal members		1,760	0.0042
Marko Šavli	Member of the Supervisory Board	1,760	0.0042
Alen Mihelčič	Member of the Supervisory Board	0	0.0000
Robert Ravnikar	Member of the Supervisory Board	0	0.0000
		2,980	0.0071
Sašo Berger	President of the Management Board	700	0.0017
Jože Smolič	Member of the Management Board	700	0.0017
Marko Ninčević	Member of the Management Board	700	0.0017
Metod Podkrižnik	Member of the Management Board	0	0.0000
Drago Kavšek	Member of the Management Board	0	0.0000
Zoran Gračner	Member of the Management Board and Worker Director	880	0.0021

Contingent increase in share capital

In the period until 30 June 2024, no resolution regarding the contingent increase in share capital was adopted at the General Meeting of Shareholders of Petrol d.d., Ljubljana.

Dividends

Petrol d.d., Ljubljana did not pay any dividends in the period from January to June 2024. In 2023, a gross dividend of EUR 1.5 per share was paid out for 2022. According to the resolution adopted at the 38th General Meeting of Petrol d.d., Ljubljana, the dividend for 2023 of EUR 1.8 gross per share was paid on 2 August 2024 to the shareholders entered at the KDD on 1 August 2024.

Own shares

In the period from January to June 2024, Petrol d.d., Ljubljana did not repurchase its own shares. As at 30 June 2024, the number of own shares was 614,460, representing 1.5 percent of the share capital.

Petrol d.d., Ljubljana's own shares, excluding Geoplin d.o.o. Ljubljana's shares, in total amounting to 722,840, or 36,142 prior to the split, were purchased between 1997 and 1999. The Company may acquire these own shares only for the purposes laid down in Article 247 of the Slovenian Companies Act (ZGD–1) and as remuneration for the Management and Supervisory Boards. Own shares are used in accordance with the Company's Articles of Association.

Regular participation at investors' conferences and external communication

Petrol d.d., Ljubljana has set up a programme of regular cooperation with domestic and foreign investors, which consists of public announcements, one–on–one meetings and presentations and public presentations of the company. We regularly attend annual investor conferences organised by stock exchanges, banks and brokerage companies. In March 2024, we participated in an event organised by the Ljubljana Stock Exchange – the "Slovenian Stock Companies Online" webinar and the "Days of the Slovenian Capital Market" event organised by the Securities Market Agency. In May, we presented our operations at the "NLB Investor Day" event and in June in Zagreb at the "Slovenian and Croatian Investor Days – CEE Investment Opportunities".

12. Events after the end of the accounting period

On 15 July 2025, the Government of the Republic of Slovenia adopted Decree amending Decree on Setting Prices for Certain Petroleum Products, determining the maximum permitted margin on diesel at EUR 0.0983 per litre and on NMB–95 petrol at EUR 0.0994 per litre. The margin on the heating oil has stayed the same. The changed margin entered into effect on 16 July 2024.

In July 2024, the European Bank for Reconstruction and Development (EBRD) approved a EUR 9.5 million senior unsecured loan to Petrol d.d., Ljubljana to support the ambitious programme of installing recharging points for light and heavy–duty electric vehicles in Slovenia and Croatia in the context of the European cross–border electric charging project, CROSS–E.

In July 2024, EKOEN d.o.o. and EKOEN S d.o.o. were merged into Petrol d.d., Ljubljana.

In July 2024, Vjetroelektrana Ljubač d.o.o. was merged into Vjetroelektrane Glunča d.o.o.

On 12 August 2024, the Croatian government adopted a decree enabling petroleum product distributors to increase the margin on petrol (eurosuper 95) and eurodiesel by EUR 0.03 per litre. The margins on the propane– butane blends for large tanks or gas storage tanks and for LPG cylinders have also increased, while the margin on blue diesel has not changed.

SUSTAINABLE DEVELOPMENT

13. Responsibility towards the natural environment

At Petrol, we perform activities related to the sustainability strategy which is focused on the transition to a low–carbon company by taking account of circular economy in partnership with employees and the social environment.

We have prepared the first estimates of burden projections for the 2025–2030 period based on the expected changes of sustainability regulations (in the fields of RES, RED III11, ZPEPKO12, CO2 tax). RED III increases the obligation of the share of renewable energy in the energy mix; it refers to reducing CO2 emissions caused by the use of fuels. Ensuring energy savings for end users is an obligation in EU member states and will be subject to new requirements in accordance with the revised EU Energy Efficiency Directive. An extended ETS scheme (ETS213) is in preparation; it will introduce an emissions trading system in the transport sector for regulated entities, fuel distributors included, which represents the introduction of a sort of carbon tax.

The energy transition and meeting the EU Green Deal obligations require significant investments. The restrictive regulatory framework in Slovenia does not enable covering all costs and it negatively impacts the investment capacity, especially in the field of the energy transition projects.

We have prepared a risk overview for the updated risk register where we added ESG risks, including climate risks in accordance with the topics and fields set out in the ESRS, which include ESG topics and are the basis of reporting under the CSRD14.

We have started the preparation procedures for the double materiality matrix for reporting in accordance with the CSRD. We have analysed the ETS2 schemes and started preparing the application for the environmental permit for emissions.

14. Employees

As at 30 June 2024, the Petrol Group had 5,936 employees, of which 45 percent worked for subsidiaries abroad. Compared to the end of 2023, the number of Petrol Group employees decreased by 9. The number of employees changed in subsidiaries, Petrol d.d., Ljubljana, and third–party operated service stations. On 1 January, Petrol d.d. Ljubljana became the operator of 26 service stations, as a result of which 152 employees were redeployed from service station operators to Petrol d.d., Ljubljana.

CHANGES IN THE NUMBER OF EMPLOYEES OF THE PETROL GROUP AND AT THIRD–PARTY OPERATED SERVICE STATIONS IN THE PERIOD 2022–2024

14 CSRD – Corporate Sustainability Reporting Directive

Training

In the first six months of 2024, we provided 58,879 teaching hours of training and recorded 19,848 attendances.

We continued the Professional Development of Managers programme and organised the Performance Monitoring training. We organised 15 different events in the context of the Open Space. We supported the Positive Psychology Marathon. Employees attended trainings and took tests in various legally required contents. Employees in Sermin also brushed up on their knowledge in the field of national safety standards and took the necessary professional examinations. In retail, we started systematically developing management skills and organised trainings for employees in management positions. Internal coaches attended annual recertification.

15. Quality control

Quality and excellence are embedded in the Petrol Group's strategy for the 2021–2025 period, which is why we are constantly upgrading and expanding our quality management systems. Petrol has the following certified systems in place: quality management system (ISO 9001), environmental management system (ISO 14001), and energy management system (ISO 50001). In addition to the certified systems, the Company's comprehensive quality management system incorporates the requirements of the HACCP food safety management system, of the ISO 45001 occupational health and safety system and of the ISO 27001 information security system.

Petrol d.d., Ljubljana has a Responsible Care Certificate for its activities relating to storage, logistics and the retail network of service stations in Slovenia, an FSC certificate for the sale of FSC–certified products, and an ISCC certificate for trading and storing renewable energy sources.

Company	Quality management system	Environmental management system	Energy management system	Laboratory accreditations	Other certificates
Petrol d.d., Ljubljana	ISO 9001:2015	ISO 14001:2015	ISO 50001:2018	SIST EN ISO/IEC 17025:20171 , SIST EN ISO/IEC 17020:20122	ISCC3 , POR4 , FSC5 , AEO6
Petrol d.o.o.	ISO 9001:2015	ISO 14001:2015	/	/	/
Petrol d.o.o. Beograd	ISO 9001:2015	ISO 14001:2015	/	/	EN 45001
Beogas d.o.o.	ISO 9001:2015	/	/	/	/

Overview of certificates and laboratory accreditations

¹ Petrol d.d., Ljubljana – Petrol Laboratory is accredited by Slovenian Accreditation with the accreditation number LP–002 in the field of testing (SIST EN ISO/IEC 17025).

² Petrol d.d., Ljubljana – Measurement and Environment Service is accredited by Slovenian Accreditation with the accreditation number K–040 in the field of inspection (SIST EN ISO/IEC 17020). ³ Petrol d.d., Ljubljana is certified under the voluntary International Sustainability and Carbon Certification (ISCC) scheme for the sustainable supply of biofuels, which means a documented and traceable path

from the production of raw materials to the final product. ⁴ Based on the Report on the Implementation of Accepted Commitments from the World Charter of Responsible Environmental Management (POR), Petrol d.d., Ljubljana is the holder of the Certificate for the Responsible Environmental Management Programme for storage, logistics and retail service stations in Slovenia and related rights to the use of the logo.

⁵ Petrol d.d., Ljubljana, is the holder of the FSC certificate for the production of wood chips for thermal energy. The FSC certificate, issued by the international non–governmental organisation Forest Stewardship Council, promotes environmentally sound, socially beneficial and economically viable forest management.

⁶ The AEO15 certificate is issued by the Customs Administration of the Republic of Slovenia, which carries out supervision and inspection among the recipients of the AEO certificate. This certificate facilitates access to customs simplifications, fewer physical and documentary checks, preferential treatment in the event of controls, the possibility of choosing a place for such controls and the possibility of prior notification. To obtain an AEO certificate, it is necessary to meet a number of conditions and criteria: meeting security and safety standards, appropriate records of compliance with customs requirements and a reliable system of business and transport records that allow control and proven financial solvency.

16. Social responsibility

Our aim is to actively influence the environment where we live and work and offer help in tackling social and other challenges. For many years, we have been helping wider social and local communities achieve a dynamic lifestyle and better quality of life. Our responsible social attitude is demonstrated through the support we provide to a number of sports, arts, humanitarian and environmental projects. In the Petrol Group, social responsibility is perceived as a lasting commitment to working together with the environment in which we operate.

Through the Our Energy Connects project, which has been implemented at Petrol for the fourteenth year in a row, we donated more than EUR 62 thousand to 137 organisations and individuals in local environments at the start of 2024. In January, the humanitarian campaign of collecting Petrol Golden Points ended. The donations

from Petrol's customers received through the Golden Points in the amount of EUR 10 thousand were given to 15 AEO – Authorised economic operator

the Slovenian Forestry Institute which will use the funds to rehabilitate almost 20 hectares of damaged forests.

By the end of March, we collected more than EUR 162 thousand for young and talented Slovenian skiers in the Ski Cents charity campaign which was also held in November 2023, February and March 2024. In addition to Petrol and the campaign partners, donations were made by more than 100 thousand Petrol's customers.

In January, we supported the World Snowboarding Cul in Rogla and in February we became a sponsor of the Croatian Football Association. Due to bad weather conditions and the resulting event cancellation, we were not able to cooperate in the organisation of the 63rd Vitranc Ski Cup, but we supported the Slovenian Football Team in June in their historic success in EURO 2024, the Slovenian Volleyball Team in qualifying for the Olympic Games in Paris, and cheered for the Slovenian Basketball Team in home friendly matches and Olympic qualifiers.

We were also active in culture as a sponsor of the Ljubljana City Theatre and the Magnificent season series in Cankarjev Dom. Once again, we entered the summer season as one of the major sponsors of the 72nd Ljubljana Festival and co–sponsor of events at Festival Lent.

FINANCIAL REPORT

17. Financial performance of the Petrol Group and Petrol d.d., Ljubljana

STATEMENT OF PROFIT AND LOSS OF THE PETROL GROUP AND PETROL D.D., LJUBLJANA

		The Petrol Group		Petrol d.d.
(in EUR)	Note	1–6 2024	1–6 2023	1–6 2024	1–6 2023
Revenue from contracts with customers	20.1	2,948,544,399	3,434,543,744	2,140,420,937	2,648,025,006
Cost of goods sold		(2,627,929,200)	(3,119,855,620)	(1,941,563,570)	(2,429,676,838)
Costs of materials		(27,824,156)	(35,585,152)	(22,206,285)	(29,383,059)
Costs of services		(87,006,899)	(90,111,566)	(66,192,453)	(71,454,181)
Labour costs		(85,484,723)	(78,455,250)	(56,017,797)	(51,102,426)
Depreciation and amortisation		(49,396,483)	(47,218,252)	(22,885,253)	(22,385,162)
Other costs		(10,680,938)	(23,732,353)	(8,759,531)	(18,513,849)
– of which net allowance for trade receivables		(2,591,144)	3,257,201	(1,712,780)	2,592,652
Gain on derivatives		79,058,055	119,254,651	79,484,343	118,165,399
Loss on derivatives		(71,637,535)	(89,936,917)	(72,023,146)	(85,442,419)
Other income		4,535,586	4,481,222	2,864,051	2,751,813
Other expenses		(499,086)	(1,001,258)	(14,728)	(92,651)
Operating profit or loss		71,679,020	72,383,249	33,106,568	60,891,633
Share of profit or loss of equity accounted investees		600,469	815,512	–	–
Finance income from dividends paid by subsidiaries, associates and jointly controlled entities		–	–	25,721,523	2,537,826
Finance income		34,770,761	38,340,145	29,541,330	35,672,637
Finance expenses		(40,459,103)	(45,105,010)	(35,947,961)	(38,285,942)
Net finance expense		(5,688,342)	(6,764,865)	(6,406,631)	(2,613,305)
Profit/(loss) before tax		66,591,147	66,433,896	52,421,460	60,816,154
Income tax expense		(14,503,213)	(13,677,714)	(5,654,450)	(11,023,630)
Net profit/(loss) for the year		52,087,934	52,756,182	46,767,010	49,792,524
Net profit/(loss) for the year attributable to:
Owners of the controlling company		49,281,843	53,000,704	46,767,010	49,792,524
Non–controlling interest		2,806,091	(244,522)	–	–
Basic and diluted earnings per share attributable to owners of the controlling company	20.2	1.20	1.29	1.13	1.21

In 2023, the Group/Company changed the presentation of individual items. The changes are explained in point 18. e.

Other comprehensive income of the Petrol Group and Petrol d.d., Ljubljana

	The Petrol Group		Petrol d.d.
(in EUR)	1–6 2024	1–6 2023	1–6 2024	1–6 2023
Net profit/(loss) for the year	52,087,934	52,756,182	46,767,010	49,792,524
Effective portion of changes in the fair value of cash flow variability hedging	25,623,414	(11,071,709)	464,441	(3,065,368)
Change in deferred taxes	(5,602,849)	2,100,025	(102,177)	582,422
Change in the fair value of financial assets through other comprehensive income	–	1,547	–	–
Change in deferred taxes	–	(294)	–	–
Foreign exchange differences	201,350	104,497	–	–
Other comprehensive income to be recognised in the statement of profit or loss in the future	20,221,915	(8,865,934)	362,264	(2,482,946)
Total other comprehensive income to be recognised in the statement of profit or loss in the future	20,221,915	(8,865,934)	362,264	(2,482,946)
Other comprehensive income not to be recognised in the statement of profit or loss in the future	–	–	–	–
Total other comprehensive income not to be recognised in the statement of profit or loss in the future	–	–	–	–
Total other comprehensive income after tax	20,221,915	(8,865,934)	362,264	(2,482,946)
Total comprehensive income for the year	72,309,849	43,890,248	47,129,274	47,309,578
Total comprehensive income attributable to:
Owners of the controlling company	64,378,232	45,723,299	47,129,274	47,309,578
Non–controlling interest	7,931,617	(1,833,051)	–	–

STATEMENT OF FINANCIAL POSITION OF THE PETROL GROUP AND PETROL D.D., LJUBLJANA

		The Petrol Group		Petrol d.d.
(in EUR)	Note	30 June 2024	31 December 2023	30 June 2024	31 December 2023
ASSETS
Non–current (long–term) assets
Intangible assets		240,475,879	240,679,305	152,063,751	151,635,027
Right–of–use assets		143,342,389	130,838,196	30,585,754	29,523,632
Property, plant and equipment		857,488,906	867,570,447	364,398,959	365,945,345
Investment property		16,953,190	16,838,729	10,826,680	11,133,112
Investments in subsidiaries		–	–	555,342,376	555,292,232
Investments in jointly controlled entities		312,391	350,240	233,000	233,000
Investments in associates		58,737,017	59,316,541	26,610,477	26,610,477
Fin. assets at fair value through other comprehensive income		3,969,859	3,993,859	2,093,914	2,117,914
Contract assets		4,922,027	5,181,885	–	–
Loans		1,274,404	2,362,489	33,366,024	29,071,795
Operating receivables		7,904,326	8,468,242	7,887,996	8,451,918
Deferred tax assets		18,511,598	21,826,714	9,492,354	9,752,558
		1,353,891,986	1,357,426,647	1,192,901,285	1,189,767,010
Current assets
Inventories	20.5	225,303,887	205,764,125	131,905,554	115,954,817
Contract assets		1,038,911	870,520	341,651	211,844
Loans and other financial receivables		1,873,773	775,307	58,593,275	38,641,992
Operating receivables	20.6	625,782,595	802,101,033	427,139,411	539,697,310
Corporate income tax assets		7,315,325	5,728,330	3,927,596	–
Financial assets at fair value through profit or loss		1,638,324	3,960,075	1,436,093	3,882,986
Fin. assets at fair value through other comprehensive income		26,078,128	22,586,772	18,582,122	20,139,006
Prepayments and other assets	20.7	103,581,188	130,113,538	45,955,641	68,415,070
Cash and cash equivalents		109,948,246	105,937,006	29,226,282	33,020,462
		1,102,560,377	1,277,836,706	717,107,625	819,963,487
Total assets		2,456,452,363	2,635,263,353	1,910,008,910	2,009,730,497

			The Petrol Group		Petrol d.d.
(in EUR)	Note	30 June 2024	31 December 2023	30 June 2024	31 December 2023
EQUITY AND LIABILITIES
Equity attributable to owners of the controlling company
Called–up capital		52,240,977	52,240,977	52,240,977
Capital surplus		80,991,385	80,991,385	80,991,385
Legal reserves		61,987,955	61,987,955	61,749,884	61,749,884
Reserves for own shares		4,708,359	4,708,359	4,708,359	4,708,359
Own shares		(4,708,359)	(4,708,359)	(2,604,670)	(2,604,670)
Other profit reserves		265,836,736	293,491,987	289,010,058	316,608,074
Fair value reserve		2,282,521	2,282,521	42,782,085	42,782,085
Hedging reserve		20,974,723	6,077,707	16,095,162	15,732,898
Foreign exchange differences		(9,255,744)	(9,455,117)	–	–
Retained earnings		405,853,252	402,974,199	46,707,167	46,342,948
		880,911,805	890,591,614	591,680,407	618,551,940
Non–controlling interest		39,911,565	32,450,874	–	–
Total equity		920,823,370	923,042,488	591,680,407	618,551,940
Non–current liabilities
Provisions for employee post–employment and other long–term benefits		7,549,513	7,560,534	5,934,975	5,934,975
Other provisions		38,964,655	34,880,215	36,481,815	30,835,607
Deferred income		41,298,458	39,805,957	30,758,558	29,521,102
Borrowings and other financial liabilities	20.8	276,681,767	347,037,409	280,920,831	300,681,833
Lease liabilities		115,014,569	99,759,274	29,070,232	27,578,972
Operating liabilities		506,968	530,968	506,968	530,968
Deferred tax liabilities		21,108,664	21,595,322	–	–
		501,124,594	551,169,679	383,673,379	395,083,457
Current liabilities
Other provisions		8,088,673	12,800,941	2,123,178	3,397,085
Deferred income		4,565,714	5,618,566	4,434,060	5,461,212
Borrowings and other financial liabilities	20.8	111,682,111	114,603,510	279,721,056	223,888,245
Lease liabilities		19,458,473	21,054,721	4,021,291	4,318,028
Operating liabilities	20.9	808,983,531	895,619,840	584,747,744	684,867,349
Commodity derivative instruments		4,885,885	11,822,333	5,101,545	233,737
Corporate income tax liabilities		6,617,282	24,964,976	–	18,819,182
Contract liabilities		31,817,524	25,290,576	24,244,146	16,977,300
Other liabilities		38,405,206	49,275,723	30,262,104	38,132,962
		1,034,504,399	1,161,051,186	934,655,124	996,095,100
Total liabilities		1,535,628,993	1,712,220,865	1,318,328,503	1,391,178,557
Total equity and liabilities		2,456,452,363	2,635,263,353	1,910,008,910	52,240,977 80,991,385 2,009,730,497

STATEMENT OF CHANGES IN EQUITY OF THE PETROL GROUP

				Profit reserves
(in EUR)	Called–up capital	Capital surplus	Legal reserves	Reserves for own shares	Own shares
As at 1 January 2023	52,240,977	80,991,385	61,987,955	4,708,359	(4,708,359)
Dividend payments for 2022
Increase/(decrease) in non–controlling interest
Transactions with owners	–	–	–	–	–
Net profit for the current year
Other comprehensive income
Total comprehensive income	–	–	–	–	–
As at 30 June 2023	52,240,977	80,991,385	61,987,955	4,708,359	(4,708,359)
As at 1 January 2024	52,240,977	80,991,385	61,987,955	4,708,359	(4,708,359)
Dividend payments for 2023
Increase/(decrease) in non–controlling interest
Transactions with owners	–	–	–	–	–
Net profit for the current year
Other comprehensive income
Total comprehensive income	–	–	–	–	–
As at 30 June 2024	52,240,977	80,991,385	61,987,955	4,708,359	(4,708,359)

STATEMENT OF CHANGES IN EQUITY OF PETROL D.D., LJUBLJANA

			Profit reserves
Called–up capital	Capital surplus	Legal reserves	Reserves for own shares
52,240,977	80,991,385	61,749,884	4,708,359
–	–	–	–
–	–	–	–
52,240,977	80,991,385	61,749,884	4,708,359
52,240,977	80,991,385	61,749,884	4,708,359
–	–	–	–
–	–	–	–
52,240,977	80,991,385	61,749,884	4,708,359

STATEMENT OF CHANGES IN EQUITY OF THE PETROL GROUP

STATEMENT OF CHANGES IN EQUITY OF PETROL D.D., LJUBLJANA

		Equity attributable					Profit reserves
	Non–controlling	to owners of the controlling		Foreign exchange			Other profit
Total	interest	company	Retained earnings	differences	Hedging reserve	Fair value reserve	reserves
860,166,621	31,401,474	828,765,147	323,576,627	(9,496,033)	17,827,312	1,810,718	299,826,206
(61,667,340)		(61,667,340)	(9,691,939)				(51,975,401)
(946,094)	(184,486)	(761,608)					(761,608)
(62,613,434)	(184,486)	(62,428,948)	(9,691,939)	–	–	–	(52,737,009)
52,756,182	(244,522)	53,000,704	53,000,704
(8,865,934)	(1,588,529)	(7,277,405)		104,284	(7,382,621)	932
43,890,248	(1,833,051)	45,723,299	53,000,704	104,284	(7,382,621)	932	–
841,443,435	29,383,937	812,059,498	366,885,392	(9,391,749)	10,444,691	1,811,650	247,089,197
923,042,488	32,450,874	890,591,614	402,974,199	(9,455,117)	6,077,707	2,282,521	293,491,987
(74,000,807)		(74,000,807)	(46,402,790)				(27,598,017)
(528,160)	(470,926)	(57,234)					(57,234)
(74,528,967)	(470,926)	(74,058,041)	(46,402,790)	–	–	–	(27,655,251)
52,087,934	2,806,091	49,281,843	49,281,843
20,221,915	5,125,526	15,096,389		199,373	14,897,016
72,309,849	7,931,617	64,378,232	49,281,843	199,373	14,897,016	–	–
920,823,370	39,911,565	880,911,805	405,853,252	(9,255,744)	20,974,723	2,282,521	265,836,736

					Profit reserves
Total	Retained earnings	Hedging reserve	Fair value reserve	Other profit reserves	Own shares
597,990,971	9,545,011	26,639,848	42,539,491	322,180,686	(2,604,670)
(61,667,340)	(9,691,939)			(51,975,401)
(61,667,340)	(9,691,939)	–	–	(51,975,401)	–
49,792,524	49,792,524
(2,482,946)		(2,482,946)
47,309,578	49,792,524	(2,482,946)	–	–	–
583,633,207	49,645,596	24,156,900	42,539,491	270,205,285	(2,604,670)
618,551,940	46,342,948	15,732,898	42,782,085	316,608,074	(2,604,670)
(74,000,808)	(46,402,792)			(27,598,016)
(74,000,808)	(46,402,792)	–	–	(27,598,016)	–
46,767,010	46,767,010
362,264		362,264
47,129,274	46,767,010	362,264	–	–	–
591,680,407	46,707,167	16,095,162	42,782,085	289,010,058	(2,604,670)

CASH FLOW STATEMENT OF THE PETROL GROUP AND PETROL D.D., LJUBLJANA

		The Petrol Group		Petrol d.d.
(in EUR)	Note	1–6 2024	1–6 2023	1–6 2024	1–6 2023
Cash flows from operating activities
Net profit		52,087,934	52,756,182	46,767,010	49,792,524
Adjustment for:
Corporate income tax		14,503,213	13,677,714	5,654,450	11,023,630
Depreciation of property, plant and equipment, investment property and right–of–use assets		42,769,108	40,771,126	18,163,579	17,787,468
Amortisation of intangible assets		6,627,375	6,447,126	4,721,674	4,597,694
Disposals/impairment of assets		1,367,822	(372,015)	(70,994)	(218,997)
Revenue from assets under management		(32,528)	(32,438)	(32,528)	(32,438)
Net (decrease in)/creation of provisions for long–term employee benefits		(11,128)	(18,539)	–	–
Net (decrease in)/creation of other provisions and deferred income		(188,323)	14,154,615	4,582,605	16,853,424
Net goods shortages		859,472	370,218	737,089	432,157
Net (decrease in)/creation of allowance for receivables		2,591,144	(3,257,201)	1,712,780	(2,592,652)
Net finance (income)/expense		4,378,057	6,195,744	5,464,814	5,182,284
Share of profit of jointly controlled entities		(6,547)	(237,002)	–	–
Share of profit of associates		(593,922)	(578,510)	–	–
Finance income from dividends received from subsidiaries		–	–	(24,763,106)	(701,048)
Finance income from dividends received from jointly controlled entities		–	–	(44,393)	(931,389)
Finance income from dividends received from associates		–	–	(914,025)	(905,389)
Cash flow from operating activities before changes in working capital		124,351,677	129,877,020	61,978,955	100,287,268
Net (decrease in)/creation of other liabilities		(10,879,355)	24,643,297	(7,870,860)	10,123,840
Net decrease in/(creation) of other assets	20.7	7,834,187	(51,737,870)	12,366,921	(32,080,833)
Change in inventories	20.5	(20,388,610)	31,857,498	(16,687,825)	24,185,836
Change in operating and other receivables and contract assets	20.6	197,030,855	177,614,953	124,048,028	63,612,217
Change in operating and other liabilities and contract liabilities	20.9	(152,193,494)	(248,084,934)	(162,644,126)	(160,863,374)
Cash generated from operating activities		145,755,260	64,169,964	11,191,093	5,264,954
Interest paid		(13,639,350)	(12,048,392)	(10,113,825)	(9,293,615)
Taxes refunded/(paid)		(37,133,701)	12,630,221	(28,243,300)	11,550,610
Net cash from (used in) operating activities		94,982,209	64,751,793	(27,166,032)	7,521,949

		The Petrol Group		Petrol d.d.
(in EUR)	Note	1–6 2024	1–6 2023	1–6 2024	1–6 2023
Cash flows from investing activities
Payments for inv. in subsidiaries, net of cash acquired		–	–	(50,144)	(1,259,301)
Receipts from sale of intangible assets		228,908	64	219,628	64
Payments for intangible assets		(4,826,643)	(5,654,404)	(5,370,027)	(4,306,250)
Receipts from sale of property, plant and equipment		3,048,698	3,240,952	284,872	595,575
Payments for property, plant and equipment	20.4	(26,040,007)	(39,128,418)	(13,807,237)	(18,815,223)
Receipts from sale of investment property			7,755		–
Payments for investment property		(700,644)	–	–	–
Receipts from financial assets at fair value through other comprehensive income		–	309,330	–	–
Receipts from loans granted		162,335	443,820	14,765,963	158,091,152
Payments for loans granted		(253,362)	(183,913)	(38,656,175)	(155,077,191)
Interest received		8,999,009	6,215,626	7,510,778	4,356,121
Dividends received from subsidiaries		–	–	24,763,106	701,048
Dividends received from jointly controlled entities		44,393	931,389	44,393	931,389
Dividends received from associates		1,173,446	1,006,150	914,025	905,389
Dividends received from others		366,962	110,000	146,962	–
Net cash from (used in) investing activities		(17,796,905)	(32,701,649)	(9,233,856)	(13,877,227)
Cash flows from financing activities
Payments for bonds issued	20.8	(32,828,000)	–	(32,828,000)	–
Lease payments		(11,688,606)	(9,982,181)	(3,779,523)	(2,125,358)
Proceeds from borrowings	20.8	222,003,586	865,059,453	1,641,261,228	1,259,012,117
Repayment of borrowings	20.8	(250,644,869)	(898,379,669)	(1,572,059,577)	(1,265,735,896)
Transactions with non–controlling interests		(50,144)	(1,259,301)	–	–
Net cash from (used in) financing activities		(73,208,033)	(44,561,698)	32,594,128	(8,849,137)
Increase/(decrease) in cash and cash equivalents		3,977,271	(12,511,554)	(3,805,760)	(15,204,415)
Changes in cash and cash equivalents
At the beginning of the year		105,937,006	100,962,531	33,020,462	51,203,361
Foreign exchange differences		33,969	(3,017)	11,580	–
Increase/(decrease)		3,977,271	(12,511,554)	(3,805,760)	(15,204,415)
At the end of the period		109,948,246	88,447,960	29,226,282	35,998,946

18. Notes to the financial statements

Reporting entity

Petrol d.d., Ljubljana (hereinafter the "Company") is a company domiciled in Slovenia. Its registered office is at Dunajska cesta 50, 1000 Ljubljana. Below we present unaudited consolidated financial statements of the Group for the period ended 30 June 2024 and separate financial statements of the company Petrol d.d., Ljubljana for the period ended 30 June 2024. The consolidated financial statements comprise the Company and its subsidiaries as well as the Group's interests in associates and jointly controlled entities (together referred to as the "Group"). A more detailed overview of the Group's structure is presented in the Appendix 1: Organisational structure of the Petrol Group.

Basis of preparation

a. Statement of compliance

The Company's management approved the Company's financial statements and the Group's consolidated financial statements on 14 August 2024.

The financial statements of Petrol d.d., Ljubljana and consolidated financial statements of the Petrol Group have been prepared in accordance with IAS 34 – Interim financial reporting and should be read in conjunction with the Group's annual financial statements and the notes to the statements as at 31 December 2023.

The financial statements for the period from January–June 2024 are prepared based on the same accounting policies and the calculation method used for the preparation of financial statements for the year ended 31 December 2023.

The financial statements and the financial report for the period from 1 January 2024 to 30 June 2024 are not audited.

b. Basis of measurement

The Group's and the Company's financial statements have been prepared on the historical cost basis except for the financial instruments that are carried at fair value.

c. Functional and presentation currency

These financial statements are presented in euros (EUR) without cents, the euro is also being the Company's functional currency. Due to rounding, some immaterial differences may arise as concerns the sums presented in tables.

d. Use of estimates and judgements

In preparing the interim report, the Group/Company observes the estimation principles as when preparing the annual report.

e. Changes of financial statement presentation

The Group/Company has not changed its accounting policies in 2024; however, it has changed the presentation of its financial statements compared to the first six months of 2023.

At the end of 2023, the Group/Company changed the presentation of individual items in the statement of profit and loss to ensure a more adequate presentation. The change also includes comprehensive adjustment of items for the comparative period of the first six months of 2023 on the same bases.

Cost of goods sold and other income

Until the end of 2023, the Group/Company presented the reimbursements for the difference between the average monthly cost of goods sold and the regulated retail price for electricity and natural gas supply under other income. Upon reconsidering such presentation, the Group/Company has estimated that it is more suitable to present the claim against Borzen as reduction of cost of goods sold.

		The Petrol Group		Petrol d.d.
	Change of presentation				Change of presentation
(in EUR)	1–6 2023 Published	Claims against Borzen	1–6 2023 Restated	1–6 2023 Published	Claims against Borzen	1–6 2023 Restated
Cost of goods sold	(3,169,891,721)	50,036,101	(3,119,855,620)	(2,460,202,532)	30,525,694	(2,429,676,838)
Other income	54,517,323	(50,036,101)	4,481,222	33,277,507	(30,525,694)	2,751,813
Operating profit or loss	72,383,249	–	72,383,249	60,891,633	–	60,891,633

EFFECT ON THE STATEMENT OF PROFIT AND LOSS OF THE PETROL GROUP AND PETROL D.D.

f. Materiality criterion

The criterion applied in determining the materiality of the consolidated statements was the Group's equity as at 30 June 2024 in the amount of 2%, accounting for EUR 18.4 million. Changes in the statement of financial position which do not exceed the materiality threshold in interim financial statements are not presented, except those which the Group is obliged to present based on IAS 34 or legislative requirements and in case where the management decides that certain information is material and is disclosed regardless of the set materiality thresholds.

19. Segment reporting

In view of the fact that the financial report consists of the financial statements and accompanying notes of both the Group and the Company, only the Group's operating segments are disclosed.

An operating segment is a component of the Group that engages in business activities from which it earns revenue and incurs expenses that relate to transactions with any of the Group's other components. The results of the operating segments are reviewed regularly by the Management Board (Chief Operating Decision Maker) to make decisions about the resources to be allocated to a segment and assess the Group's performance.

Segment reporting is presented in detail in the business report, in chapters 7 Business performance analysis and 8 Operations by product groups.

THE GROUP'S OPERATING SEGMENTS IN THE PERIOD 1 JANUARY–30 JUNE 2023:

(in EUR)	Fuels and petroleum products	Merchandise and services	Energy and solutions	Other	Total	Statement of profit or loss
Revenue from contracts with customers	2,044,359,056	262,888,090	1,808,868,775	7,271,187	4,123,387,108
Revenue from subsidiaries	(438,640,558)	(308,185)	(246,620,914)	(3,273,707)	(688,843,364)
Revenue from contracts with customers	1,605,718,498	262,579,904	1,562,247,861	3,997,481	3,434,543,744	3,434,543,744
Cost of goods sold	(1,456,425,867)	(186,968,427)	(1,476,449,533)	(11,794)	(3,119,855,620)	(3,119,855,620)
Gross profit	149,292,631	75,611,477	85,798,329	3,985,687	314,688,124	314,688,124
Operating profit or loss	16,375,569	19,016,521	37,324,125	(332,966)	72,383,249	72,383,249
Depreciation of PPE, right–of–use assets, inv. property and amortisation of intangible assets	(19,375,963)	(7,893,089)	(19,900,444)	(48,756)	(47,218,252)	(47,218,252)
EBITDA	33,085,046	26,909,609	54,865,234	1,484,411	116,344,300	116,344,300
Depreciation and amortisation						(47,218,252)
Net allowance for trade receivables						3,257,201
Share of profit or loss of equity accounted investees						815,512
Net finance expense						(6,764,865)
Profit/(loss) before tax						66,433,896

In 2023, the Group changed the presentation of individual items, hence the adjusted table of operating segments for 2023. The changes explained under item 18. e affect the section Energy and Solutions.

THE GROUP'S OPERATING SEGMENTS IN THE PERIOD 1 JANUARY–30 JUNE 2024:

(in EUR)	Fuels and petroleum products	Merchandise and services	Energy and solutions	Other	Total	Statement of profit or loss
Revenue from contracts with customers	2,080,295,448	306,556,580	1,203,107,485	6,543,506	3,596,503,019
Revenue from subsidiaries	(476,607,094)	(697,830)	(166,776,841)	(3,876,855)	(647,958,620)
Revenue from contracts with customers	1,603,688,354	305,858,749	1,036,330,644	2,666,651	2,948,544,399	2,948,544,399
Cost of goods sold	(1,455,567,503)	(217,976,170)	(954,385,527)	–	(2,627,929,200)	(2,627,929,200)
Gross profit	148,120,851	87,882,579	81,945,118	2,666,651	320,615,199	320,615,199
Operating profit or loss	12,348,355	25,106,937	32,838,085	1,385,643	71,679,020	71,679,020
Depreciation of PPE, right–of–use assets, inv. property and amortisation of intangible assets	(23,743,755)	(10,533,025)	(14,522,596)	(597,108)	(49,396,483)	(49,396,483)
EBITDA	38,248,575	35,639,962	47,267,410	2,510,700	123,666,647	123,666,647
Depreciation and amortisation						(49,396,483)
Net allowance for trade receivables						(2,591,144)
Share of profit or loss of equity accounted investees						600,469
Net finance expense						(5,688,342)
Profit/(loss) before tax						66,591,147

ADDITIONAL INFORMATION ABOUT GEOGRAPHIC AREAS WHERE THE GROUP OPERATES:

	Revenue from contracts with
	customers		Total assets		Net investments
				31 December
(in EUR)	1–6 2024	1–6 2023	30 June 2024	2023	1–6 2024	1–6 2023
Slovenia	1,390,596,788	1,700,877,514	1,332,570,602	1,542,384,679	20,113,359	20,234,007
Croatia	590,787,172	556,678,512	786,625,936	759,107,434	5,953,729	15,874,612
Austria	103,026,881	173,564,714	3,637,620	4,646,160	–	–
Bosnia and Herzegovina	102,536,871	109,626,720	92,522,227	97,068,583	99,055	(1,024,662)
Serbia	92,711,676	64,778,165	122,870,130	114,836,968	1,058,184	1,045,437
Montenegro	31,471,751	25,507,890	34,698,494	32,966,853	360,302	45,979
Macedonia	7,462,851	3,174,932	3,393,382	234,500	–	–
Romania	1,937,391	2,440,169	639,748	586,688	–	–
Other countries	628,013,018	797,895,128	1,933,218	1,937,993	–	–
	2,948,544,399	3,434,543,744	2,378,891,357	2,553,769,858	27,584,629	36,175,373
Jointly controlled entities			312,391	350,240
Associates			58,737,017	59,316,541
Unallocated assets			18,511,598	21,826,714
Total assets			2,456,452,363	2,635,263,353

In the first six months of 2024, the Group earmarked a net of EUR 27.6 million for investments in property, plant and equipment, intangible assets, and long–term financial investments. More details are provided in the business report, chapter 9 Investments.

20. Notes to individual items in the financial statements

20.1 REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE BY TYPE OF GOOD

	The Petrol Group		Petrol d.d.
(in EUR)	1–6 2024	1–6 2023	1–6 2024	1–6 2023
Revenue from the sale of goods	2,888,930,813	3,376,260,070	2,090,651,278	2,599,468,934
Revenue from the sale of services	59,613,586	58,283,674	49,769,659	48,556,072
Total revenue	2,948,544,399	3,434,543,744	2,140,420,937	2,648,025,006

REVENUE BY SALES MARKET

	The Petrol Group		Petrol d.d.
(in EUR)	1–6 2024	1–6 2023	1–6 2024	1–6 2023
Domestic sales revenue	1,390,596,788	1,700,877,514	1,233,489,495	1,516,701,806
EU market sales revenue	1,212,061,636	1,411,003,431	826,268,393	1,011,349,750
Non–EU market sales revenue	345,885,975	322,662,799	80,663,049	119,973,450
Total revenue	2,948,544,399	3,434,543,744	2,140,420,937	2,648,025,006

20.2 EARNINGS PER SHARE

	The Petrol Group		Petrol d.d.
(in EUR)	1–6 2024	1–6 2023	1–6 2024	1–6 2023
Net profit attributable to owners of the controlling company (in EUR)	49,281,843	53,000,704	46,767,010	49,792,524
Number of shares issued	41,726,020	41,726,020	41,726,020	41,726,020
Number of own shares at the beginning of the year	614,460	614,460	494,060	494,060
Number of own shares at the end of the year	614,460	614,460	494,060	494,060
Weighted average number of ordinary shares issued	41,111,560	41,111,560	41,231,960	41,231,960
Diluted average number of ordinary shares	41,111,560	41,111,560	41,231,960	41,231,960
Basic and diluted earnings per share attributable to owners of the controlling company (EUR/share)	1.20	1.29	1.13	1.21

Basic earnings per share are calculated by dividing the owners' net profit by the weighted average number of ordinary shares, excluding ordinary shares owned by the Group/Company. The Group and the Company have no potential dilutive ordinary shares, so the basic and diluted earnings per share are identical. Petrol's share is listed on the main board of the stock exchange under the ticker PETG.

20.3 OTHER ITEMS IN THE PROFIT AND LOSS STATEMENT

Significant items in the profit and loss statement are explained in chapter 7.2 The Petrol Group's performance.

20.4 PROPERTY, PLANT AND EQUIPMENT

In the first six months of 2024, the Group earmarked EUR 26.0 million for property, plant and equipment, especially for the renovation of service stations.

20.5 INVENTORIES

	The Petrol Group		Petrol d.d.
(in EUR)	30 June 2024	31 December 2023	30 June 2024	31 December 2023
Spare parts and materials	12,103,677	6,181,410	11,740,728	5,795,708
Merchandise:	213,200,210	199,582,715	120,164,826	110,159,109
– fuel	158,299,514	137,192,459	84,149,843	65,828,213
– other petroleum products	282,907	225,765	225,756	177,755
– other merchandise	54,617,789	62,164,491	35,789,227	44,153,141
Total inventories	225,303,887	205,764,125	131,905,554	115,954,817

20.6 CURRENT OPERATING RECEIVABLES

	The Petrol Group		Petrol d.d.
(in EUR)	30 June 2024	31 December 2023	30 June 2024	31 December 2023
Current financial assets
Trade receivables	642,097,138	824,858,769	437,095,668	556,416,110
Allowance for trade receivables	(57,727,365)	(56,144,286)	(31,080,086)	(30,014,240)
Operating interest receivables	1,844,076	1,870,604	1,348,063	2,763,821
Allowance for interest receivables	(1,773,749)	(1,798,342)	(1,348,063)	(1,368,186)
Receivables from insurance companies (loss events)	106,092	130,592	63,244	65,420
Other operating receivables	36,764,228	27,303,395	22,010,706	12,548,040
Allowance for other receivables	(2,453,529)	(2,015,642)	(1,018,691)	(760,777)
	618,856,891	794,205,090	427,070,841	539,650,188
Current non–financial assets
Operating receivables from state and other institutions	6,925,704	7,895,943	68,570	47,122
	6,925,704	7,895,943	68,570	47,122
Total current operating receivables	625,782,595	802,101,033	427,139,411	539,697,310

20.7 PREPAYMENTS AND OTHER ASSETS

	The Petrol Group		Petrol d.d.
(in EUR)	30 June 2024	31 December 2023	30 June 2024	31 December 2023
Prepayments and collaterals	52,215,886	70,919,121	19,330,857	29,423,366
Accrued claims against Borzen	20,084,621	30,551,965	8,189,458	21,990,157
Prepaid and recoverable excise duties	18,395,538	17,850,186	8,494,439	9,283,423
Prepaid licences, subscriptions, specialised literature, etc.	4,620,984	2,557,849	3,500,161	2,168,119
Prepaid insurance premiums	923,657	1,647,173	398,252	1,222,171
Other deferred expenses	7,340,502	6,587,244	6,042,474	4,327,834
Total prepayments and other assets	103,581,188	130,113,538	45,955,641	68,415,070

20.8 BORROWINGS AND OTHER FINANCIAL LIABILITIES

	The Petrol Group		Petrol d.d.
(in EUR)	30 June 2024	31 December 2023	30 June 2024	31 December 2023
Current borrowings and other fin. liabilities
Bank loans	111,344,448	70,011,290	51,414,613	33,610,872
Bonds issued	212,659	33,252,298	212,659	33,252,298
Liab. to banks arising from currency forward contracts	–	10,422,565	–	1,348,035
Liabilities to banks arising from interest rate swaps	–	489,076	–	489,076
Other loans and financial liabilities	125,004	428,281	228,093,784	155,187,964
	111,682,111	114,603,510	279,721,056	223,888,245
Non–current borrowings and other fin. liabilities
Bank loans	265,331,281	335,661,995	248,920,827	268,685,376
Bonds issued	11,000,004	10,996,457	11,000,004	10,996,457
Loans obtained from other companies	350,482	378,957	21,000,000	21,000,000
	276,681,767	347,037,409	280,920,831	300,681,833
Total borrowings and other fin. liabilities	388,363,878	461,640,919	560,641,887	524,570,078

In the first half of 2024, the Company paid the issued bonds in the total nominal value of EUR 32.8 million. The bonds with a 7–year maturity which were issued in 2017 were paid in accordance with expectations and without delays.

The Company fulfilled all of its liabilities to bond holders, thereby attesting to its commitment to the financial discipline and reliable debt management. The bonds were paid with own finances obtained from current operations and without the need for additional borrowing.

20.9 CURRENT OPERATING LIABILITIES

		The Petrol Group	Petrol d.d.
(in EUR)	30 June 2024	31 December 2023	30 June 2024	31 December 2023
Current financial liabilities
Trade liabilities	550,324,380	732,510,278	392,201,349	583,652,292
Liabilities arising from interests acquired	2,450,000	2,450,000	2,450,000	2,450,000
Liabilities associated with the allocation of profit or loss	74,167,102	768,880	74,167,102	768,880
Other liabilities	160,728	1,632,158	605,794	1,665,900
	627,102,210	737,361,316	469,424,245	588,537,072
Current non–financial liabilities
Excise duty liabilities	87,141,829	68,474,917	59,223,178	51,712,805
Value added tax liabilities	61,635,404	50,480,396	37,123,103	19,609,923
Liabilities to employees	12,496,385	11,690,842	7,410,405	7,532,216
Liabilities for environmental charges and contributions	9,910,560	10,970,072	8,136,070	8,435,837
Other liabilities to the state and other state institutions	7,501,851	12,898,659	2,363,020	7,925,634
Social security contribution liabilities	2,258,058	2,062,835	1,067,723	1,113,862
Import duty liabilities	937,234	1,680,803	–	–
	181,881,321	158,258,524	115,323,499	96,330,277
Total current operating and other liabilities	808,983,531	895,619,840	584,747,744	684,867,349

21. Financial instruments and risks

This chapter presents disclosures about financial instruments and risks. Risk management is explained in the interim report, in the chapter 10 Risk management.

The risks to which the Group is exposed did not change significantly in the first half of 2024, according to Chapter 6 Financial instruments and risk management of the financial part of the Petrol Annual Report for 2023.

Credit risk

In the first six months of the year 2024 the Group/Company continued to actively monitor the balances of trade receivables.

MAXIMUM EXPOSURE TO CREDIT RISK REPRESENTS THE CARRYING AMOUNT OF FINANCIAL ASSETS WHICH WAS THE FOLLOWING AS AT 30 JUNE 2024:

	The Petrol Group		Petrol d.d.
(in EUR)	30 June 2024	31 December 2023	30 June 2024	31 December 2023
Financial assets at fair value through other comprehensive income	30,047,987	26,580,631	20,676,036	22,256,920
Non–current loans	1,274,404	2,362,489	33,366,024	29,071,795
Non–current operating receivables	7,904,326	8,468,242	7,887,996	8,451,918
Contract assets	5,960,938	6,052,405	341,651	211,844
Current loans and other fin. receivables	1,873,773	775,307	58,593,275	38,641,992
Current operating receivables (excluding rec. from the state)	618,856,891	794,205,090	427,070,841	539,650,188
Financial assets at fair value through profit or loss	1,638,324	3,960,075	1,436,093	3,882,986
Cash and cash equivalents	109,948,246	105,937,006	29,226,282	33,020,462
Total assets	777,504,889	948,341,245	578,598,198	675,188,105

The category that was most exposed to credit risk on the reporting date were current operating receivables.

THE GROUP'S SHORT–TERM OPERATING RECEIVABLES BY MATURITY:

	Breakdown by maturity
(in EUR)	Not yet due	Up to 30 days overdue	Including 30 to 60 days overdue	Including 60 to 90 days overdue	More than 90 days overdue	Total
Trade receivables
Expected loss rate	2%	2%	2%	88%	73%
Gross value	693,753,105	58,506,817	14,129,197	3,830,103	54,639,547	824,858,769
Allowance	(11,481,030)	(1,083,595)	(245,025)	(3,379,091)	(39,955,545)	(56,144,286)
	682,272,075	57,423,222	13,884,172	451,012	14,684,002	768,714,483
Operating interest receivables
Gross value	958,124	–	–	–	912,480	1,870,604
Allowance	(912,256)	–	–	–	(886,086)	(1,798,342)
	45,868	–	–	–	26,394	72,262
Other receivables (excluding receivables from the state)
Expected loss rate	6%	6%	6%	90%	49%
Gross value	23,463,661	2,975,880	1,543	193	992,710	27,433,987
Allowance	(1,346,361)	(183,324)	(98)	(174)	(485,685)	(2,015,642)
	22,117,300	2,792,556	1,445	19	507,025	25,418,345
Total as at 31 December 2023	704,435,243	60,215,778	13,885,617	451,031	15,217,421	794,205,090

	Breakdown by maturity
(in EUR)	Not yet due	Up to 30 days overdue	Including 30 to 60 days overdue	Including 60 to 90 days overdue	More than 90 days overdue	Total
Trade receivables
Expected loss rate	2%	1%	4%	73%	80%
Gross value	512,083,801	57,980,423	11,505,803	3,755,489	56,771,622	642,097,138
Allowance	(8,506,599)	(869,382)	(414,212)	(2,745,018)	(45,192,154)	(57,727,365)
	503,577,202	57,111,041	11,091,591	1,010,471	11,579,468	584,369,773
Operating interest receivables
Gross value	965,664	–	–	–	878,412	1,844,076
Allowance	(911,678)	–	–	–	(862,071)	(1,773,749)
	53,986	–	–	–	16,341	70,327
Other receivables (excluding receivables from the state)
Expected loss rate	5%	4%	4%	83%	48%
Gross value	35,434,235	393,559	201	24	1,042,301	36,870,320
Allowance	(1,933,992)	(17,323)	(8)	(20)	(502,186)	(2,453,529)
	33,500,243	376,236	193	4	540,115	34,416,791
Total as at 30 June 2024	537,131,431	57,487,277	11,091,784	1,010,475	12,135,924	618,856,891

THE COMPANY'S SHORT–TERM OPERATING RECEIVABLES BY MATURITY:

	Breakdown by maturity
(in EUR)	Not yet due	Up to 30 days overdue	Including 30 to 60 days overdue	Including 60 to 90 days overdue	More than 90 days overdue	Total
Trade receivables
Expected loss rate	2%	2%	2%	74%	50%
Gross value	482,971,082	24,571,334	6,898,363	2,622,012	39,353,319	556,416,110
Allowance	(7,782,047)	(451,861)	(133,885)	(1,947,712)	(19,698,735)	(30,014,240)
	475,189,035	24,119,473	6,764,478	674,300	19,654,584	526,401,870
Interest receivables
Gross value	765,434	–	–	–	1,998,387	2,763,821
Allowance	(758,556)	–	–	–	(609,630)	(1,368,186)
	6,878	–	–	–	1,388,757	1,395,635
Other receivables (excluding receivables from the state)
Expected loss rate	5%	5%	–	85%	31%
Gross value	11,857,173	125,437	–	129	630,721	12,613,460
Allowance	(556,943)	(5,925)	–	(110)	(197,799)	(760,777)
	11,300,230	119,512	–	19	432,922	11,852,683
Total as at 31 December 2023	486,496,143	24,238,985	6,764,478	674,319	21,476,263	539,650,188

Interest receivables

		Breakdown by maturity
(in EUR)	Not yet due	Up to 30 days overdue	Including 30 to 60 days overdue	Including 60 to 90 days overdue	More than 90 days overdue	Total
Trade receivables
Expected loss rate	2%	2%	2%	100%	66%
Gross value	364,736,207	29,433,893	6,529,692	1,291,214	35,104,662	437,095,668
Allowance	(6,089,792)	(488,205)	(112,376)	(1,291,214)	(23,098,499)	(31,080,086)
	358,646,415	28,945,688	6,417,316	–	12,006,163	406,015,582

Gross value	757,978				590,085	1,348,063
Allowance	(757,978)				(590,085)	(1,348,063)
	–	–	–	–	–	–
Other receivables (excluding receivables from the state)
Expected loss rate	4%	4%	4%	83%	31%
Gross value	21,216,616	226,930	201	24	630,179	22,073,950
Allowance	(812,062)	(8,712)	(8)	(20)	(197,889)	(1,018,691)
	20,404,554	218,218	193	4	432,290	21,055,259
Total as at 30 June 2024	379,050,969	29,163,906	6,417,509	4	12,438,453	427,070,841

The Group/Company measures the degree of receivables management using day's sales outstanding.

	The Petrol Group		Petrol d.d.
(in days)	1–6 2024	1–12 2023	1–6 2024	1–12 2023
Days sales outstanding
Contract days	40	40	38	36
Overdue receivables in days	5	5	4	3
Total days sales outstanding	45	45	42	39

Liquidity risk

The Petrol Group continues with intensive activities and pays extra attention and caution to manage liquidity risk. We manage liquidity risk with a diversified portfolio of credit lines, regular reviews of financial market conditions, intense and regular financial planning of cash flows and careful investment planning.

Despite difficult conditions, our key goal remains that the Group/Company can successfully manage liquidity risks according to S&P Global Ratings's guidelines.

A strong liquidity position enables us to settle all obligations on the due date.

THE GROUP'S LIABILITIES AS AT 31 DECEMBER 2023 BY MATURITY:

	Contractual cash flows
(in EUR)	Carrying amount of liabilities	Liability	0 to 6 months	6 to 12 months	1 to 5 years	More than 5 years
Non–current borrowings and other financial liabilities	347,037,409	378,330,773	–	–	372,294,805	6,035,968
Non–current lease liabilities	99,759,274	120,378,836	–	–	73,543,153	46,835,683
Non–current operating liabilities (excluding other liabilities)	24,000	24,000	–	–	24,000	–
Current borrowings and other financial liabilities	114,603,510	132,935,288	85,597,612	47,337,676	–	–
Current lease liabilities	21,054,721	23,616,157	12,244,724	11,371,433	–	–
Liabilities arising from commodity forward contracts*	–	733,408,829	319,919,815	283,494,586	129,994,428	–
Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments)	737,361,316	737,361,316	736,893,967	467,349	–	–
Commodity derivative instruments	11,822,333	11,822,333	11,822,333	–	–	–
As at 31 December 2023	1,331,662,563	2,137,877,532	1,166,478,451	342,671,044	575,856,386	52,871,651

THE GROUP'S LIABILITIES AS AT 30 JUNE 2024 BY MATURITY:

	Contractual cash flows
(in EUR)	Carrying amount of liabilities	Liability	0 to 6 months	6 to 12 months	1 to 5 years	More than 5 years
Non–current borrowings and other financial liabilities	276,681,767	297,239,714	–	–	292,603,518	4,636,196
Non–current lease liabilities	115,014,569	138,227,394	–	–	70,155,194	68,072,200
Current borrowings and other financial liabilities	111,682,111	127,103,160	48,194,322	78,908,838	–	–
Current lease liabilities	19,458,473	23,939,082	12,198,901	11,740,181	–	–
Liabilities arising from commodity forward contracts*	–	518,242,455	302,727,388	98,746,791	116,768,276	–
Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments)	627,102,210	627,102,210	623,848,141	3,254,069	–	–
Commodity derivative instruments	4,885,885	4,885,885	4,885,885	–	–	–
As at 30 June 2024	1,154,825,015	1,736,739,900	991,854,637	192,649,879	479,526,988	72,708,396

THE COMPANY'S LIABILITIES AS AT 31 DECEMBER 2023 BY MATURITY:

	Contractual cash flows
(in EUR)	Carrying amount of liabilities	Liability	0 to 6 months	6 to 12 months	1 to 5 years	More than 5 years
Non–current borrowings and other financial liabilities	300,681,833	327,843,222	–	–	327,843,222	–
Non–current lease liabilities	27,578,972	36,578,527	–	–	17,035,833	19,542,694
Non–current operating liabilities (excluding other liabilities)	24,000	24,000	–	–	24,000	–
Current borrowings and other financial liabilities	223,888,245	240,887,378	96,671,194	144,216,184	–	–
Current lease liabilities	4,318,028	5,619,397	3,129,952	2,489,445	–	–
Liabilities arising from commodity forward contracts*	–	727,965,886	316,833,117	281,138,341	129,994,428	–
Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments)	588,537,072	588,537,072	588,199,816	337,256	–	–
Commodity derivative instruments	233,737	233,737	233,737	–	–	–
Contingent liab. for guarantees issued**	–	542,532,723	542,532,723	–	–	–
As at 31 December 2023	1,145,261,887	2,470,221,942	1,547,600,539	428,181,226	474,897,483	19,542,694

THE COMPANY'S LIABILITIES AS AT 30 JUNE 2024 BY MATURITY:

	Contractual cash flows
(in EUR)	Carrying amount of liabilities	Liability	0 to 6 months	6 to 12 months	1 to 5 years	More than 5 years
Non–current borrowings and other financial liabilities	280,920,831	299,503,467	–	–	299,503,467	–
Non–current lease liabilities	29,070,232	38,152,298		–	15,364,977	22,787,321
Current borrowings and other financial liabilities	279,721,056	296,905,555	186,986,281	109,919,274	–	–
Current lease liabilities	4,021,291	5,357,990	2,684,428	2,673,562	–	–
Liabilities arising from commodity forward contracts*	–	515,875,628	300,360,561	98,746,791	116,768,276	–
Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments)	469,424,245	469,424,245	469,424,245	–	–	–
Commodity derivative instruments	5,101,545	5,101,545	5,101,545	–	–	–
Contingent liab. for guarantees issued**	–	558,587,441	558,587,441	–	–	–
As at 30 June 2024	1,068,259,200	2,188,908,169	1,523,144,501	211,339,627	431,636,720	22,787,321

* Liabilities arising from commodity forward contracts entered into for purchasing purposes represent contractual cash outflows based on these contracts. At the same time, the Group/Company will receive corresponding payments based on offsetting commodity contracts entered into for selling purposes.

** A maximum amount of contingent liabilities is allocated to the period in which the Company can be requested to make a payment.

Foreign exchange risk

As far as foreign exchange risks are concerned, the Group/Company is mostly exposed to the risk of changes in the EUR/USD exchange rate. Petroleum products are generally purchased in US dollars and sold in local currencies.

The Group hedges against the exposure to changes in the EUR/USD exchange rate by fixing the exchange rate in order to secure the margin. The hedging instruments used in this case are forward contracts entered into with banks.

Given that forward contracts for hedging against foreign exchange risks are entered into with first–class Slovene and international banks, the Group/Company considers the counterparty default risk as minimal.

The Group is exposed to foreign exchange risks also due to its presence in South–eastern Europe. Considering the low volatility of local currency exchange rates in South–eastern markets and the relatively low exposure, the Group/Company believes it is not exposed to significant risks in this area. To control these risks, we rely on natural hedging to the largest possible extent.

Price and volumetric risk

The Group/Company is exposed to price and volumetric risks deriving from energy commodities. The Group/ Company manages price and volumetric risks primarily by aligning purchases and sales of energy commodities in terms of quantities as well as purchase and sales conditions, thus securing its margin. Depending on the business model for each energy commodity, appropriate limit systems are in place that limit exposure to price and volumetric risks.

To hedge petroleum product prices, the Group/Company uses mostly derivative financial instruments. Partners in this area include global financial institutions and banks or suppliers of goods so the Group/Company considers the counterparty default risk as minimal.

The price risk arising from market price volatility is managed according to the defined counterparty, Value at Risk and retail portfolios quantity exposure limit framework, as well as with appropriate monitoring and control processes. In addition, the Petrol Group regularly monitors the adequacy of the used limit framework, which it updates and supplements as necessary.

Interest rate risk

The Group/Company is exposed to interest rate risks because it takes out loans with a floating interest rate, which are mostly EURIBOR–based.

In the first six months of 2024, the Group/Company continued to monitor exposure to changes in net interest expense in the case of interest rate changes. Given the high EURIBOR interest rates, we constantly assess the consequences and closely monitor conditions in funding markets. By implementing appropriate interest rate exposure hedging strategies, we strive for effective management of interest rate exposure, ensuring stability and optimizing returns.

Capital Adequacy Management

The main purpose of capital adequacy management is to ensure the best possible financial stability, long–term solvency and maximum shareholder value. The Group/Company also achieves this through stable dividend pay– out policy.

Financial stability is also demonstrated by the credit rating of BBB– from S&P Global Ratings, which reaffirmed the long–term credit rating of BBB– and short–term A–3 of the company Petrol d.d., Ljubljana in December 2023, and also confirmed the assessment of the future prospects of the credit rating "stable".

In the first six months of 2024 the Petrol Group continued to pursue its strategic orientation in the area of indebtedness and lowered the net debt to equity ratio compared to the end of 2023.

Carrying amount and fair value of financial instruments

The Petrol Group

		The Petrol Group 31 December 2023
		Fair value through profit	Fair value of derivatives used for	Amortised	Fair value through other comprehensive	Total carrying
(in EUR)		or loss	hedging	cost	income	amount
Fin. assets at FV through other
comprehensive income	Equity instruments	–	–	–	3,993,859	3,993,859
Contract assets		–	–	5,181,885	–	5,181,885
Loans		–	–	2,362,489	–	2,362,489
Operating receivables		–	–	8,468,242	–	8,468,242
Total non–current financial assets		–	–	16,012,616	3,993,859	20,006,475
Contract assets		–	–	870,520	–	870,520
Loans and other financial receivables		–	–	775,307	–	775,307
Operating rec. (excluding receivables from the state)		–	–	794,205,090	–	794,205,090
Fin. assets at FV through profit or loss	Commodity derivatives	3,960,075	–	–	–	3,960,075
Fin. assets at FV through other	Interest rate swaps	–	20,605,792	–	–	20,605,792
comprehensive income	Commodity derivatives	–	1,980,980	–	–	1,980,980
Cash and cash equivalents		–	–	105,937,006	–	105,937,006
Total current financial assets		3,960,075	22,586,772	901,787,923	–	928,334,770
Total financial assets		3,960,075	22,586,772	917,800,539	3,993,859	948,341,245
Borrowings and other financial	Borrowings	–	–	(336,040,952)	–	(336,040,952)
liabilities	Debt securities	–	–	(10,996,457)	–	(10,996,457)
Lease liabilities		–	–	(99,759,274)	–	(99,759,274)
Operating liabilities (excluding other liabilities)		–	–	(24,000)	–	(24,000)
Total non–current financial liabilities		–	–	(446,820,683)	–	(446,820,683)
	Borrowings	–	–	(70,439,571)	–	(70,439,571)
	Debt securities	–	–	(33,252,298)	–	(33,252,298)
Borrowings and other financial liabilities	Interest rate derivatives	–	(489,076)	–	–	(489,076)
	Currency forward contracts	(1,348,035)	(9,074,530)	–	–	(10,422,565)
Lease liabilities		–	–	(21,054,721)	–	(21,054,721)
Oper. liab. (excluding liab. to the state and employees)		–	–	(737,361,316)	–	(737,361,316)
Commodity derivative instruments		(786,130)	(11,036,203)	–	–	(11,822,333)
Total current financial liabilities		(2,134,165)	(20,599,809)	(862,107,906)	–	(884,841,880)
Total financial liabilities		(2,134,165)	(20,599,809)	(1,308,928,589)	–	(1,331,662,563)

				The Petrol Group 30 June 2024
(in EUR)		Fair value through profit or loss	Fair value of derivatives used for hedging	Amortised cost	Fair value through other comprehensive income	Total carrying amount
Fin. assets at FV through other comprehensive income	Equity instruments	–	–	–	3,969,859	3,969,859
Contract assets		–	–	4,922,027	–	4,922,027
Loans		–	–	1,274,404	–	1,274,404
Operating receivables		–	–	7,904,326	–	7,904,326
Total non–current financial assets		–	–	14,100,757	3,969,859	18,070,616
Contract assets		–	–	1,038,911	–	1,038,911
Loans and other financial receivables		–	–	1,873,773	–	1,873,773
Operating rec. (excluding receivables from the state)		–	–	618,856,891	–	618,856,891
	Commodity derivatives	981,746	–	–	–	981,746
Fin. assets at FV through profit or loss	Currency forward contracts	656,578	–	–	–	656,578
	Interest rate swaps	–	20,427,130	–	–	20,427,130
Fin. assets at FV through other	Commodity derivatives	–	2,371,879	–	–	2,371,879
comprehensive income	Currency forward contracts	–	3,279,119	–	–	3,279,119
Cash and cash equivalents		–	–	109,948,246	–	109,948,246
Total current financial assets		1,638,324	26,078,128	731,717,821	–	759,434,273
Total financial assets		1,638,324	26,078,128	745,818,578	3,969,859	777,504,889
	Borrowings	–	–	(265,681,763)	–	(265,681,763)
Borrowings and other financial liabilities	Debt securities	–	–	(11,000,004)	–	(11,000,004)
Lease liabilities		–	–	(115,014,569)	–	(115,014,569)
Total non–current financial liabilities		–	–	(391,696,336)	–	(391,696,336)
Borrowings and other financial liabilities	Borrowings	–	–	(111,469,452)	–	(111,469,452)
	Debt securities	–	–	(212,659)	–	(212,659)
Lease liabilities		–	–	(19,458,473)	–	(19,458,473)
Oper. liab. (excluding liab. to the state and employees)		–	–	(627,102,210)	–	(627,102,210)
Commodity derivative instruments		(4,509,061)	(376,824)	–	–	(4,885,885)
Total current financial liabilities		(4,509,061)	(376,824)	(758,242,794)	–	(763,128,679)
Total financial liabilities		(4,509,061)	(376,824)	(1,149,939,130)		– (1,154,825,015)

Petrol d.d., Ljubljana

	Petrol d.d. 31 December 2023
(in EUR)		Fair value through profit or loss	Fair value of derivatives used for hedging	Amortised cost	Fair value through other comprehensive income	Total carrying amount
Fin. assets at FV through other comprehensive income	Equity instruments	–	–	–	2,117,914	2,117,914
Loans		–	–	29,071,795	–	29,071,795
Operating receivables		–	–	8,451,918	–	8,451,918
Total non–current financial assets		–	–	37,523,713	2,117,914	39,641,627
Contract assets		–	–	211,844	–	211,844
Loans		–	–	38,641,992	–	38,641,992
Operating rec. (excluding receivables from the state)		–	–	539,650,188	–	539,650,188
Fin. assets at FV through profit or loss	Commodity derivatives	3,882,986	–	–	–	3,882,986
Fin. assets at FV through other	Interest rate swaps	–	18,158,026	–	–	18,158,026
comprehensive income	Commodity derivatives	–	1,980,980	–	–	1,980,980
Cash and cash equivalents		–	–	33,020,462	–	33,020,462
Total current financial assets		3,882,986	20,139,006	611,524,486	–	635,546,478
Total financial assets		3,882,986	20,139,006	649,048,199	2,117,914	675,188,105
Borrowings and other financial	Borrowings	–	–	(289,685,376)	–	(289,685,376)
liabilities	Debt securities	–	–	(10,996,457)	–	(10,996,457)
Lease liabilities		–	–	(27,578,972)	–	(27,578,972)
Operating liabilities (excluding other liabilities)		–	–	(24,000)	–	(24,000)
Total non–current financial liabilities		–	–	(328,284,805)	–	(328,284,805)
	Borrowings	–	–	(188,798,836)	–	(188,798,836)
Borrowings and other financial	Debt securities	–	–	(33,252,298)	–	(33,252,298)
liabilities	Interest rate derivatives	–	(489,076)	–	–	(489,076)
	Currency forward contracts	(1,348,035)	–	–	–	(1,348,035)
Lease liabilities		–	–	(4,318,028)	–	(4,318,028)
Oper. liab. (excluding liab. to the state and employees)		–	–	(588,537,072)	–	(588,537,072)
Commodity derivative instruments		(233,737)	–	–	–	(233,737)
Total current financial liabilities	(1,581,772)	(489,076)	(814,906,234)	–	(816,977,082)
Total financial liabilities		(1,581,772)		(489,076) (1,143,191,039)		– (1,145,261,887)

(in EUR)		Fair value through profit or loss	Fair value of derivatives used for hedging	Amortised cost	Fair value through other comprehensive income	Total carrying amount
Fin. assets at FV through other comprehensive income	Equity instruments	–	–	–	2,093,914	2,093,914
Loans		–	–	33,366,024	–	33,366,024
Operating receivables		–	–	7,887,996	–	7,887,996
Total non–current financial assets		–	–	41,254,020	2,093,914	43,347,934
Contract assets		–	–	341,651	–	341,651
Loans and other financial receivables		–	–	58,593,275	–	58,593,275
Operating rec. (excluding receivables from the state)		–	–	427,070,841	–	427,070,841
Fin. assets at FV through profit or loss	Commodity derivatives	1,436,093	–	–	–	1,436,093
Fin. assets at FV through other	Interest rate swaps	– 18,567,190		–	–	18,567,190
comprehensive income	Commodity derivatives	–	14,932	–	–	14,932
Cash and cash equivalents		–	–	29,226,282	–	29,226,282
Total current financial assets		1,436,093	18,582,122	515,232,049	–	535,250,264
Total financial assets		1,436,093	18,582,122	556,486,069	2,093,914	578,598,198
Borrowings and other financial	Borrowings	–	–	(269,920,827)	–	(269,920,827)
liabilities	Debt securities	–	–	(11,000,004)	–	(11,000,004)
Lease liabilities		–	–	(29,070,232)	–	(29,070,232)
Total non–current financial liabilities		–	–	(309,991,063)	–	(309,991,063)
Borrowings and other financial	Borrowings	–	–	(279,508,397)	–	(279,508,397)
liabilities	Debt securities	–	–	(212,659)	–	(212,659)
Lease liabilities		–	–	(4,021,291)	–	(4,021,291)
Oper. liab. (excluding liab. to the state and employees)		–	–	(469,424,245)	–	(469,424,245)
Commodity derivative instruments		(4,725,594)	(375,951)	–	–	(5,101,545)
Total current financial liabilities	(4,725,594)	(375,951)	(753,166,592)	–	(758,268,137)
Total financial liabilities		(4,725,594)		(375,951) (1,063,157,655)		– (1,068,259,200)

Presentation of financial assets and liabilities disclosed at fair value according to the fair value hierarchy

The Petrol Group

Fair value of assets

			30 June 2024				31 December 2023
(in EUR)	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss	–	1,638,324	–	1,638,324	–	3,960,075	–	3,960,075
Fin. assets at fair value through other comprehensive income	–	26,078,128	3,969,859	30,047,987	–	22,586,772	3,993,859	26,580,631
Total assets at fair value	–	27,716,452	3,969,859	31,686,311	–	26,546,847	3,993,859	30,540,706
Non–current loans	–	–	1,274,404	1,274,404	–	–	2,362,489	2,362,489
Current loans and other financial receivables	–	–	1,873,773	1,873,773	–	–	775,307	775,307
Non–current operating receivables	–	–	7,904,326	7,904,326	–	–	8,468,242	8,468,242
Current operating receivables (excluding rec. from the state)	–		– 618,856,891 618,856,891		–	–	794,205,090	794,205,090
Contract assets	–	–	5,960,938	5,960,938	–	–	6,052,405	6,052,405
Cash and cash equivalents		– 109,948,246		– 109,948,246	–	105,937,006	–	105,937,006
Total assets with fair value disclosure		– 109,948,246 635,870,332 745,818,578			–	105,937,006	811,863,533	917,800,539
Total assets		– 137,664,698 639,840,191 777,504,889			–	132,483,853	815,857,392	948,341,245

Fair value of liabilities

	30 June 2024				31 December 2023
(in EUR)	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Financial liabilities	–	–	–	–		– (10,911,641)	–	(10,911,641)
Commodity derivative instruments	–	(4,885,885)	–	(4,885,885)		– (11,822,333)	–	(11,822,333)
Total liabilities at fair value		– (4,885,885)	–	(4,885,885)		– (22,733,974)	–	(22,733,974)
Non–current borrowings and other financial liabilities	–	–	(276,681,767)	(276,681,767)	–	–	(347,037,409)	(347,037,409)
Non–current lease liabilities	–	–	(115,014,569)	(115,014,569)	–	–	(99,759,274)	(99,759,274)
Current borrowings and other financial liabilities (excluding liabilities at fair value)	–	–	(111,682,111)	(111,682,111)	–	–	(103,691,869)	(103,691,869)
Current lease liabilities	–	–	(19,458,473)	(19,458,473)	–	–	(21,054,721)	(21,054,721)
Non–current operating liabilities (excluding other liabilities)	–	–	–	–	–	–	(24,000)	(24,000)
Current operating liab. (excluding liab. to the state, employees and liabilities at fair value)	–	–	(627,102,210)	(627,102,210)	–	–	(737,361,316)	(737,361,316)
Total liabilities with fair value disclosure	–	–		(1,149,939,130) (1,149,939,130)	–	–	(1,308,928,589)	(1,308,928,589)
Total liabilities		– (4,885,885)		(1,149,939,130) (1,154,825,015)	–	(22,733,974)	(1,308,928,589)	(1,331,662,563)

Petrol d.d., Ljubljana

Fair value of assets

	30 June 2024				31 December 2023
(in EUR)	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss	–	1,436,093	–	1,436,093	–	3,882,986	–	3,882,986
Fin. assets at fair value through other comprehensive income	–	18,582,122	2,093,914	20,676,036	–	20,139,006	2,117,914	22,256,920
Total assets at fair value	–	20,018,215	2,093,914	22,112,129	–	24,021,992	2,117,914	26,139,906
Non–current loans	–	–	33,366,024	33,366,024	–	–	29,071,795	29,071,795
Current loans and other financial receivables	–	–	58,593,275	58,593,275	–	–	38,641,992	38,641,992
Non–current operating receivables	–	–	7,887,996	7,887,996	–	–	8,451,918	8,451,918
Current operating receivables (excluding rec. from the state)	–		– 427,070,841 427,070,841		–		– 539,650,188 539,650,188
Contract assets	–	–	341,651	341,651	–	–	211,844	211,844
Cash and cash equivalents	–	29,226,282	–	29,226,282	–	33,020,462	–	33,020,462
Total assets with fair value
disclosure	–		29,226,282 527,259,787 556,486,069		–		33,020,462 616,027,737 649,048,199
Total assets	–		49,244,497 529,353,701 578,598,198		–		57,042,454 618,145,651 675,188,105

Fair value of liabilities

	30 June 2024			31 December 2023
(in EUR)	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Financial liabilities	–	–	–	–	–	(1,837,111)	–	(1,837,111)
Commodity derivative instruments	–	(5,101,545)	–	(5,101,545)	–	(233,737)	–	(233,737)
Total liabilities at fair value		– (5,101,545)	–	(5,101,545)	–	(2,070,848)	–	(2,070,848)
Non–current borrowings and other financial liabilities	–	–	(280,920,831)	(280,920,831)	–	–	(300,681,833)	(300,681,833)
Non–current lease liabilities	–	–	(29,070,232)	(29,070,232)	–	–	(27,578,972)	(27,578,972)
Current borrowings and other financial liabilities (excluding liabilities at fair value)	–	–	(279,721,056)	(279,721,056)	–	–	(222,051,134)	(222,051,134)
Current lease liabilities	–	–	(4,021,291)	(4,021,291)	–	–	(4,318,028)	(4,318,028)
Non–current operating liabilities (excluding other liabilities)	–	–	–	–	–	–	(24,000)	(24,000)
Current operating liab. (excluding liab. to the state, employees and liabilities at fair value)	–	–	(469,424,245)	(469,424,245)	–	–	(588,537,072)	(588,537,072)
Total liabilities with fair value disclosure	–	–	(1,063,157,655)	(1,063,157,655)	–	–	(1,143,191,039)	(1,143,191,039)
Total liabilities		– (5,101,545)	(1,063,157,655)	(1,068,259,200)	–	(2,070,848)	(1,143,191,039)	(1,145,261,887)

	The Petrol Group		Petrol d.d.
(in EUR)	2024	2023	2024	2023
As at 1 January	3,993,859	4,446,423	2,117,914	2,117,914
Disposals	–	(335,624)	–	–
Decrease	(24,000)	–	(24,000)	–
Total profit or losses recognised in the statement of comprehensive income	–	1,547	–	–
As at 30 June	3,969,859	4,112,346	2,093,914	2,117,914

22. Related party transactions

Petrol d.d., Ljubljana is a joint–stock company listed on the Ljubljana Stock Exchange. The ownership structure as at 30 June 2024 is disclosed in the Chapter 11 Share and ownership structure and in the Appendix 1: Organisational structure of the Petrol Group.

All of the Group/Company–related party transactions were carried out based on the market conditions applicable to transactions with unrelated parties.

	The Petrol Group		Petrol d.d.
(in EUR)	1–6 2024	1–6 2023	1–6 2024	1–6 2023
Revenue from contracts with customers:
Subsidiaries	–	–	440,703,262	461,075,893
Jointly controlled entities	246,172	392,020	14,201	14,756
Associates	14,745	17,787	14,745	17,787
Cost of goods sold:
Subsidiaries	–	–	53,411,527	105,862,764
Jointly controlled entities	49,001	56,595	–	–
Costs of materials:
Subsidiaries	–	–	297,596	457,912
Jointly controlled entities	–	1,544	–	–
Costs of services:
Subsidiaries	–	–	1,193,891	461,321
Jointly controlled entities	2,162	1,995	–	–
Gain on derivatives:
Subsidiaries	–	–	1,664,886	702,373
Loss on derivatives:
Subsidiaries	–	–	1,054,626	2,880,205
Fin. inc./expenses from interests in Group companies:
Subsidiaries	–	–	24,763,106	701,048
Jointly controlled entities	6,547	237,002	44,393	931,389
Associates	593,922	578,510	914,025	905,389
Finance income from interest:
Subsidiaries	–	–	607,032	864,930
Jointly controlled entities	11,848	1,370	11,848	1,370
Other finance income:
Subsidiaries	–	–	111,244	53,662
Finance expenses for interest:
Subsidiaries	–	–	2,259,617	980,230

	The Petrol Group		Petrol d.d.
(in EUR)	30 June 2024	31 December 2023	30 June 2024	31 December 2023
Investments in Group companies:
Subsidiaries	–	–	555,342,376	555,292,232
Jointly controlled entities	312,391	350,240	233,000	233,000
Associates	58,737,017	59,316,541	26,610,477	26,610,477
Non–current loans:
Subsidiaries	–	–	33,346,752	28,108,437
Current operating receivables:
Subsidiaries	–	–	81,486,006	43,763,743
Jointly controlled entities	12,239	950	12,239	950
Associates	758	1,397	657	1,284
Current loans and other fin. receivables:
Subsidiaries	–	–	56,796,889	37,948,028
Jointly controlled entities	654,522	450,794	654,522	450,794
Prepayments and other assets:
Subsidiaries	–	–	–	43,840
Non–current borrowings:
Subsidiaries	–	–	21,000,000	21,000,000
Current borrowings:
Subsidiaries	–	–	228,002,896	154,797,116
Jointly controlled entities	–	300,000	–	300,000
Current operating liabilities:
Subsidiaries	–	–	4,473,952	29,050,646
Jointly controlled entities	865	844	–	–
Current deferred income:
Subsidiaries	–	–	–	113,032
Contract liabilities:
Subsidiaries	–	–	1,690	1,710
Commodity derivative instruments:
Subsidiaries	–	–	216,533	60,830
Other liabilities:
Subsidiaries	–	–	–	3,829,578

23. Contingent liabilities

CONTINGENT LIABILITIES FOR GUARANTEES ISSUED

	Petrol d.d.		Petrol d.d.
(in EUR)	30 June 2024	31 December 2023	30 June 2024	31 December 2023
Guarantee issued to:	Value of guarantee issued		Guarantee amount used
Petrol d.o.o.	190,239,359	196,539,359	100,453,326	124,950,629
Geoplin d.o.o. Ljubljana	166,226,780	166,226,780	40,934,099	51,339,177
Vjetroelektrane Glunča d.o.o.	20,000,000	20,000,000	19,285,714	20,000,000
E 3, d.o.o.	15,000,000	15,000,000	3,405,325	8,183,806
Petrol d.o.o. Beograd	10,652,300	4,332,300	1,935,410	678,070
Petrol BH Oil Company d.o.o. Sarajevo	6,843,642	6,843,642	1,516,604	1,153,304
Petrol Trade Handelsgesellschaft m.b.H.	4,000,000	3,000,000	3,000,000	3,000,000
Petrol Crna Gora MNE d.o.o.	1,050,000	1,050,000	431,189	221,299
Petrol LPG HIB d.o.o	1,012,358	1,012,358	127,823	–
Petrol Pay d.o.o.	475,000	–	–	–
Petrol LPG d.o.o.	–	4,700,000	–	–
Total	415,499,439	418,704,439	171,089,490	209,526,285
Bills of exchange issued as security	133,630,713	117,387,579	133,630,713	117,387,579
Other guarantees	9,457,289	6,440,705	9,457,289	6,440,705
Total contingent liabilities for guarantees issued	558,587,441	542,532,723	314,177,492	333,354,569

The value of a guarantee issued represents the maximum value of the guarantee issued, whereas the guarantee amount used represents a value corresponding to a company's liability for which the guarantee has been issued.

Contingent liabilities for lawsuits

The total value of lawsuits against the Company as defendant and debtor totals EUR 3.0 million (31 December 2023: EUR 2.9 million). The Company's management estimates that there is a possibility that some of these lawsuits will be lost. As a result, the Company set aside long–term provisions, which stood at EUR 1.8 million as at 30 June 2024 (31 December 2023: EUR 1.5 million).

The total value of lawsuits against the Group as defendant and debtor totals EUR 4.2 million (31 December 2023: EUR 4.7 million). The Group's management estimates that there is a possibility that some of these lawsuits will be lost. As a result, the Group set aside long–term provisions, which stood at EUR 2.5 million as at 30 June 2024 (31 December 2023: EUR 2.3 million).

24. Events after the reporting date

Events after the reporting date are described in the business report, chapter 12 Events after the end of the accounting period.

There were no events after the reporting date that would significantly affect the financial statements for the first six months of year 2024.

Appendix 1: Organisational structure of the Petrol Group

The Petrol Group, 30 June 2024 products services Energy and solutions Other The parent company Petrol d.d., Ljubljana • • • • Subsidiaries Petrol d.o.o. (100%) • • • • Petrol javna rasvjeta d.o.o. (100%) • Adria–Plin d.o.o. (75%) • Petrol BH Oil Company d.o.o. Sarajevo (100%) • • • Petrol d.o.o. Beograd (100%) • • • Petrol Lumennis PB JO d.o.o. Beograd (100%) • Petrol Lumennis VS d.o.o. Beograd (100%) • Petrol Lumennis ZA JO d.o.o. Beograd (100%) • Petrol Lumennis ŠI JO d.o.o. Beograd (100%) • Petrol KU 2021 d.o.o. Beograd (100%) • Petrol Lumennis KI JO d.o.o. Beograd (100%) • Petrol Crna Gora MNE d.o.o. (100%) • • Petrol Trade Handelsges.m.b.H. (100%) • Beogas d.o.o. Beograd (100%) • Petrol LPG d.o.o. Beograd (100%) • Tigar Petrol d.o.o. Beograd (100%) • Petrol LPG HIB d.o.o. (100%) • Petrol Power d.o.o. Sarajevo (100%) • Petrol–Energetika DOOEL Skopje (100%) • Petrol Bucharest ROM S.R.L. (100%) • Petrol Hidroenergija d.o.o. Teslić (80%) • Vjetroelektrane Glunča d.o.o. (100%) • IG Energetski Sistemi d.o.o. (100%) • Petrol Geo d.o.o. (100%) • EKOEN d.o.o. (100%) • EKOEN S d.o.o. (100%) • Zagorski metalac d.o.o. (75%) • Petrol Pay d.o.o. (100%) • Atet d.o.o. (96%; 100% voting rights) • Atet Mobility Zagreb d.o.o. (100%) • Vjetroelektrana Ljubač d.o.o. (100%) • E 3, d.o.o. (100%) • STH Energy d.o.o. Kraljevo (80%) • Petrol – OTI – Terminal L.L.C. (100%) • Geoplin d.o.o. Ljubljana (74.34%; 74.49% voting rights) • Geoplin d.o.o., Zagreb (100%) • Zagorski metalac d.o.o. (25%) • Jointly controlled entities Geoenergo d.o.o. (50%) • Soenergetika d.o.o. (25%) • Vjetroelektrana Dazlina d.o.o. (50%) •		Fuels and petroleum	Merchandise and
	Associates
Plinhold d.o.o. (29.84%) •
Aquasystems d.o.o. (26%) •
Knešca d.o.o. (47.27% of the company is owned by E 3, d.o.o.) •

MBILLS d.o.o. changed its name into Petrol Pay d.o.o.

As at 30 June 2024, the Petrol Group diagram does not include inactive companies.

PETROL REPORT ON THE OPERATIONS OF THE PETROL GROUP AND THE COMPANY PETROL D.D., LJUBLJANA IN THE FIRST SIX MONTHS OF 2024

Petrol, Slovenska energetska družba, d.d., Ljubljana Dunajska cesta 50, 1000 Ljubljana, Slovenia Registration number: 5025796000 Companies Register entry: District Court of Ljubljana, entry number: 1/05773/00 Share capital: EUR 52,240,977.04 VAT ID: SI80267432 Telephone: +386 (0)1 47 14 232 www.petrol.eu, www.petrol.si