Photon Energy N.V.

Business and Financial Review • Nov 14, 2022

Photon Energy N.V.

Monthly Report for October 2022

For the period from 1 to 31 October 2022

1. Information on the occurrence of trends and events in the market environment of the Issuer, which in the Issuer's opinion may have important consequences in the future for the financial condition and results of the Issuer

1.1 Production results of Photon Energy's power plants in the reporting period

The Company reports 111.4 GWh of electricity produced YTD compared to 92.4 GWh one year ago (+20.6%) propelled by the two power plants in Leeton having been operational for the full ten months (compared to only since August in the 2021 comparative numbers) and the addition of two new power plants in Tolna, Hungary (1.4 MWp added in December 2021 and 1.4 MWp added in May 2022). This represents an avoidance of 43,836 tonnes of CO² emissions year-to-date.

With over 80% of the Company's power plant portfolio selling electricity directly to the grid at market prices, the Company achieved revenues from electricity generation of EUR 32.741 million in the first ten months of 2022, compared to EUR 19.402 million for the full year 2021 (+68.8%).

In October the electricity generated by our proprietary portfolio was 8.4 GWh, being short of estimates by -5.3%. Our Australian portfolio underperformed energy forecasts by -29.7%, while our Czech, Slovak and Hungarian portfolio exceeded expectations by 14.9%, 8.3% and 3.5% respectively.

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

1.2 Photon Energy Group secures EUR 28.1 million long-term refinancing for its Czech portfolio

During the reporting period, the Company announced that it has closed a long-term non-recourse project refinancing agreement with UniCredit Bank Czech Republic and Slovakia a.s. ('UCB') for its proprietary photovoltaic (PV) power plants in the Czech Republic. The portfolio to be refinanced is comprised of nine PV power plants with a combined capacity of 14.6 MWp that were connected to the grid in 2009 and 2010. The refinancing, which totals EUR 28.1 million, is split into financing in Euros, for EUR 9.7 million, and Czech crowns (CZK), for CZK 451 million (EUR 18.4 million). The facilities are being provided for a period of 7 years and 3 months, until 31 December 2029.

Through this refinancing agreement with UniCredit Bank, we have again secured long-term project refinancing for most of our Czech portfolio, allowing us to free up significant additional liquidity after the repayment of our EUR Bond 2017/2022 to finance the expansion of our portfolio.

1.3 Photon Energy Group Taps its 6.50% Green Bond to 77.5 Million Euros

During the reporting period, the Company announced that it has tapped its 6.50% Green EUR Bond 2021/2027 in the amount of EUR 10.0 million to a total outstanding amount of EUR 75.0 million.

The bonds, which bear interest at a rate of 6.50% p.a. with quarterly interest payments, were offered to bondholders of the existing 2017/2022 corporate bonds in form of an exchange offer with a 1.5% loyalty premium plus the difference in net accrued interest on each exchanged bond. Existing investors registered around 6.0 million euros nominally for exchange, which corresponds to a ratio of 30% of the outstanding bond. Together with the initial exchange offer organized in November 2021, 60% of the outstanding volume of the Company's 2017/2022 bond has been exchanged for the new Green EUR Bond. Investors from Germany, Austria and Luxembourg were given the opportunity to subscribe for the bond until 11 October 2022 directly through the Company's website in form of a public offer. In addition, a private placement was launched towards the end of the subscription period. The tap issuance of the 2021/2027 Green bonds were included into trading on the Quotation Board trading segment of the Open Market (Freiverkehr) on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) on 14 October 2022.

We were pleased that with a short delay after the reporting period the EBRD could continue to participate as a long-term investor in our bond placement for EUR 2.5 million. Including this additional contribution the total placement amounts to EUR 12.5 million and brings the total outstanding amount of the Green EUR Bond to EUR 77.5 million, The EBRD's total bond investment amounts to EUR 17.5 million now.

The Company intends to use net proceeds of the tap issuance to finance photovoltaic projects or hybrid solutions combined with energy storage, as well as financial instruments that were used to finance such projects or assets, in accordance with the Company's Green Financing Framework issued in September 2021.

1.4 Photon Energy Group repays 7.75% corporate bond 2017/2022

During the reporting period, the Company successfully fully repaid the outstanding nominal value of EUR 15.232 million of its 7.75% EUR corporate bond 2017/2022 (ISIN: DE000A19MFH4) at the end of the five-year term in accordance with the bond conditions. The repayment was made together with the final interest payment to the bondholders. With a flawless track record in serving our quarterly bond coupons and our transparent and proactive communication with investors during the whole bond tenor, the final repayment of our second bond marked a crucial milestone in our capital market financing activities. The bond was issued on 27 October 2017 with a 7.75% annual coupon and quarterly coupon payments in Germany, Austria and Luxemburg. The original target volume of EUR 30 million was successfully increased in two taps with all parameters unchanged, to an outstanding amount of EUR 45 million. The bond, with a nominal value of EUR 1,000 each, had been traded on the Open Market of the Frankfurt Stock Exchange since 27 October 2017. It was also listed on the stock exchanges in Berlin, Hamburg, Hannover, Munich and Stuttgart

1.5 Reporting on Photon Energy's project pipeline

Photon Energy is currently developing PV projects in Australia (300.0 MWp), Hungary (90.5 MWp), Romania (227.7 MWp) and Poland (280.8 MWp) and is evaluating further markets for opportunities.

For detailed information, please refer to chapter 3 "Reporting on Photon Energy's project pipeline".

2. Proprietary PV power plants

The table below represents power plants owned directly or indirectly by Photon Energy N.V. as of the date of the report.

Table 1. Production results in October 2022

Project name	Capacity	Revenue1	Prod. 2022 Oc tober	Proj. 2022 Oc tober	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in October	kWh	kWh	%	kWh	kWh	%	%
Komorovice	2,354	726 EUR	191,159	152,599	25.3%	2,462,839	2,352,259	4.7%	8.3%
Zvíkov I	2,031	730 EUR	176,930	140,860	25.6%	2,152,737	2,154,903	-0.1%	2.2%
Dolní Dvořiště	1,645	730 EUR	120,324	107,532	11.9%	1,566,917	1,569,751	-0.2%	0.1%
Svatoslav	1,231	727 EUR	81,380	68,943	18.0%	1,177,373	1,138,813	3.4%	7.0%
Slavkov	1,159	732 EUR	84,014	80,547	4.3%	1,326,227	1,251,066	6.0%	4.6%
Mostkovice SPV 1	210	732 EUR	13,008	12,538	3.7%	217,275	206,435	5.3%	6.2%
Mostkovice SPV 3	926	781 EUR	62,734	57,262	9.6%	992,195	922,018	7.6%	5.7%
Zdice I	1,499	732 EUR	115,349	101,203	14.0%	1,665,378	1,577,662	5.6%	7.5%
Zdice II	1,499	732 EUR	115,157	102,044	12.9%	1,687,013	1,589,732	6.1%	6.5%
Radvanice	2,305	737 EUR	160,320	150,139	6.8%	2,477,176	2,356,834	5.1%	5.4%
Břeclav rooftop	137	734 EUR	9,798	9,653	1.5%	156,364	143,418	9.0%	5.2%
Total Czech PP	14,996		1,130,173	983,321	14.9%	15,881,493	15,262,890	4.1%	5.2%
Babiná II	999	271 EUR	64,057	55,341	15.8%	973,939	914,710	6.5%	4.0%
Babina III	999	271 EUR	63,705	56,654	12.4%	966,855	926,913	4.3%	1.7%
Prša I.	999	270 EUR	64,379	63,695	1.1%	1,026,741	995,095	3.2%	6.2%
Blatna	700	273 EUR	39,733	39,718	0.0%	708,323	677,654	4.5%	2.8%
Mokra Luka 1	963	258 EUR	90,389	81,295	11.2%	1,172,773	1,057,551	10.9%	5.6%
Mokra Luka 2	963	257 EUR	93,181	83,427	11.7%	1,190,687	1,096,022	8.6%	5.4%
Jovice 1	979	263 EUR	59,624	55,545	7.3%	891,483	842,203	5.9%	9.1%
Jovice 2	979	263 EUR	58,761	55,171	6.5%	884,164	833,254	6.1%	9.1%
Brestovec	850	257 EUR	73,702	65,755	12.1%	1,007,996	958,038	5.2%	7.7%
Polianka	999	261 EUR	60,329	58,027	4.0%	966,899	924,617	4.6%	3.3%
Myjava	999	259 EUR	71,550	68,097	5.1%	1,091,135	1,049,641	4.0%	1.6%
Total Slovak PP	10,429		739,411	682,725	8.3%	10,880,996	10,275,698	5.9%	5.1%
Tiszakécske 1	689	177 EUR	61,109	59,859	2.1%	836,801	783,065	6.9%	2.9%
Tiszakécske 2	689	177 EUR	61,707	60,433	2.1%	840,998	786,647	6.9%	3.1%
Tiszakécske 3	689	177 EUR	58,332	57,567	1.3%	815,567	769,819	5.9%	2.9%
Tiszakécske 4	689	178 EUR	62,110	60,433	2.8%	839,181	786,647	6.7%	2.5%
Tiszakécske 5	689	177 EUR	61,346	59,859	2.5%	837,774	783,065	7.0%	8.6%
Tiszakécske 6	689	177 EUR	61,265	60,433	1.4%	837,961	786,647	6.5%	2.8%
Tiszakécske 7	689	177 EUR	61,448	59,647	3.0%	839,917	782,507	7.3%	3.3%
Tiszakécske 8	689	177 EUR	60,440	59,485	1.6%	827,932	780,696	6.1%	2.4%
Almásfüzitő 1	695	177 EUR	54,772	58,991	-7.2%	823,489	778,976	5.7%	4.5%
Almásfüzitő 2	695	177 EUR	52,984	58,940	-10.1%	800,152	778,520	2.8%	1.4%
Almásfüzitő 3	695	177 EUR	51,988	58,331	-10.9%	797,717	775,507	2.9%	1.4%
Almásfüzitő 4	695	177 EUR	54,860	59,251	-7.4%	824,513	780,496	5.6%	1.3%
Almásfüzitő 5	695	178 EUR	54,822	58,460	-6.2%	834,220	776,415	7.4%	4.0%
Almásfüzitő 6	660	177 EUR	55,133	56,121	-1.8%	830,029	746,684	11.2%	1.4%
Almásfüzitő 7	691	177 EUR	54,696	58,064	-5.8%	826,341	771,928	7.0%	1.2%
Almásfüzitő 8	668	177 EUR	55,538	56,944	-2.5%	813,360	755,262	7.7%	0.8%
Nagyecsed 1	689	183 EUR	62,691	56,786	10.4%	827,482	765,159	8.1%	2.7%
Nagyecsed 2	689	183 EUR	62,036	56,786	9.2%	819,643	765,159	7.1%	1.6%
Nagyecsed 3	689	183 EUR	62,531	56,879	9.9%	827,096	766,073	8.0%	2.3%
Fertod I	528	181 EUR	40,769	40,151	1.5%	640,958	569,257	12.6%	0.4%
Fertod II No 2	699	184 EUR	54,189	55,544	-2.4%	836,206	775,441	7.8%	1.2%
Fertod II No 3	699	183 EUR	54,788	55,544	-1.4%	832,257	775,441	7.3%	-1.0%
Fertod II No 4	699	183 EUR	54,521	55,544	-1.8%	827,435	775,441	6.7%	-0.7%

Project name	Capacity	Revenue	Prod. 2022 October	Proj. 2022 October	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in October	kWh	kWh	%	kWh	kWh	%	%
Fertod II No 5	691	184 EUR	53,509	54,327	-1.5%	827,376	776,684	6.5%	-0.9%
Fertod II No 6	699	183 EUR	54,340	55,544	-2.2%	823,053	775,441	6.1%	-1.4%
Kunszentmárton I No 1	697	180 EUR	67,743	62,733	8.0%	863,627	819,935	5.3%	2.2%
Kunszentmárton I No 2	697	179 EUR	66,914	62,751	6.6%	861,623	820,012	5.1%	2.4%
Kunszentmárton II No 1	693	182 EUR	69,535	59,532	16.8%	874,595	794,285	10.1%	1.5%
Kunszentmárton II No 2	693	182 EUR	69,942	59,532	17.5%	877,963	794,386	10.5%	1.5%
Taszár 1	701	179 EUR	62,333	65,858	-5.4%	831,025	815,598	1.9%	1.1%
Taszár 2	701	179 EUR	63,889	65,858	-3.0%	843,903	815,598	3.5%	2.1%
Taszár 3	701	179 EUR	64,238	65,858	-2.5%	846,330	815,598	3.8%	1.6%
Monor 1	688	186 EUR	64,392	60,362	6.7%	854,132	794,773	7.5%	2.4%
Monor 2	696	185 EUR	64,032	62,153	3.0%	844,921	803,960	5.1%	2.4%
Monor 3	696	186 EUR	64,514	62,153	3.8%	854,788	803,960	6.3%	3.4%
Monor 4	696	185 EUR	64,330	62,153	3.5%	853,985	803,960	6.2%	2.7%
Monor 5	688	154 EUR	30,807	57,437	-46.4%	820,982	789,033	4.0%	-1.3%
Monor 6	696	185 EUR	64,303	62,153	3.5%	853,059	803,960	6.1%	2.7%
Monor 7	696	185 EUR	64,230	62,153	3.3%	851,952	803,960	6.0%	2.4%
Monor 8	696	185 EUR	64,662	62,153	4.0%	858,256	803,960	6.8%	3.3%
Tata 1	672	180 EUR	54,478	54,859	-0.7%	899,033	869,720	3.4%	3.5%
Tata 2	676	176 EUR	58,110	58,900	-1.3%	793,992	774,703	2.5%	2.5%
Tata 3	667	177 EUR	58,775	57,727	1.8%	796,961	759,049	5.0%	2.7%
Tata 4	672	181 EUR	55,371	56,407	-1.8%	914,800	890,118	2.8%	3.5%
Tata 5	672	180 EUR	53,955	56,628	-4.7%	906,706	893,036	1.5%	8.3%
Tata 6	672	182 EUR	50,194	55,567	-9.7%	880,027	879,216	0.1%	0.3%
Tata 7	672	181 EUR	53,739	54,902	-2.1%	904,890	870,277	4.0%	3.8%
Tata 8	672	182 EUR	55,020	55,866	-1.5%	916,124	883,112	3.7%	3.0%
Malyi 1	695	183 EUR	58,472	56,688	3.1%	820,836	771,910	6.3%	2.8%
Malyi 2	695	183 EUR	59,153	56,781	4.2%	839,878	772,813	8.7%	4.7%
Malyi 3	695	183 EUR	59,502	56,781	4.8%	840,207	772,813	8.7%	4.6%
Puspokladány 1	1,406	85 EUR	133,601	121,892	9.6%	1,897,535	1,806,232	5.1%	2.2%
Puspokladány 2	1,420	191 EUR	135,996	116,458	16.8%	1,965,487	1,761,130	11.6%	2.3%
Puspokladány 3	1,420	189 EUR	131,854	112,802	16.9%	1,936,554	1,722,147	12.5%	2.3%
Puspokladány 4	1,406	188 EUR	132,289	120,008	10.2%	1,911,593	1,793,393	6.6%	1.0%
Puspokladány 5	1,420	191 EUR	135,719	115,161	17.9%	1,968,788	1,756,584	12.1%	1.6%
Puspokladány 6	1,394	85 EUR	127,368	116,983	8.9%	1,907,146	1,777,061	7.3%	1.9%
Puspokladány 7	1,406	85 EUR	131,319	120,879	8.6%	1,914,012	1,793,371	6.7%	1.2%
Puspokladány 8	1,420	189 EUR	131,314	113,269	15.9%	1,931,396	1,726,969	11.8%	1.6%
Puspokladány 9	1,406	85 EUR	132,083	120,784	9.4%	1,918,771	1,792,394	7.1%	4.9%
Puspokladány 10	1,420	189 EUR	131,667	112,658	16.9%	1,930,508	1,720,666	12.2%	1.9%
Tolna 1	1,358	190 EUR	133,792	135,718	-1.4%	2,003,016	1,973,782	1.5%	na
Tolna 2	1,358	190 EUR	137,976	135,718	1.7%	1,407,711	1,385,618	1.6%	na
Total Hungarian PP	51,814		4,579,536	4,426,196	3.5%	65,484,571	61,396,065	6.7%	7.9%
Symonston	144	236 EUR	14,164	18,092	-21.7%	116,014	133,864	-13.3%	-13.5%
Leeton	7,261	94 EUR	980,204	1,394,688	-29.7%	9,607,326	11,229,841	-14.4%	216.7%
Fivebough	7,261	98 EUR	973,044	1,384,817	-29.7%	9,466,753	11,079,946	-14.6%	209.0%
Total Australian PP	14,744		1,967,412	2,797,596	-29.7%	19,190,093	22,443,651	-14.5%	208.0%
Total	91,905		8,416,532	8,889,837	-5.3%	111,437,153	109,378,304	1.9%	20.6%

Notes:

Capacity: installed capacity of the power plant

Prod.: production in the reporting month - Proj.: projection in the reporting month Perf.: performance of the power plant in reporting month i.e. (production in Month / pro-

jection for Month) - 1. YTD Prod.: accumulated production year-to-date i.e. from January until the end of the

reporting month. YTD Proj.: accumulated projection year-to-date i.e. from January until the end of the reporting month.

Perf. YTD: performance of the power plant year-to-date i.e. (YTD prod. in 2022 / YTD proj. in 2022) – 1.

YTD YOY: (YTD Prod. in 2022 / YTD Prod. in 2021) – 1.

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

- Realized electricity price in Hungary.

1

- Realized electricity price + Australian Large-scale Generation Certificate spot closing price in Australia.

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

The Company reports 111.4 GWh of electricity produced YTD compared to 92.4 GWh one year ago (+20.6%) propelled by the two power plants in Leeton having been operational for the full ten months (compared to only since August in the 2021 comparative numbers) and the addition of two new power plants in Tolna, Hungary (1.4 MWp added in December 2021 and 1.4 MWp added in May 2022). This represents an avoidance of 43,836 tonnes of CO² emissions year-to-date.

With over 80% of the Company's power plant portfolio selling electricity directly to the grid at market prices, the Company achieved revenues from electricity generation of EUR 32.741 million in the first ten months of 2022, compared to EUR 19.402 million for the full year 2021 (+68.8%).

0 5,000 10,000 15,000 20,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cumulative production in MWh Q1 Q2 Q3 October

Chart 1.c Total production of Hungarian portfolio Chart 1.d Total production of Australian portfolio

In October the electricity generated by our proprietary portfolio was short of estimates by -5.3%. Our Australian portfolio underperformed energy forecasts by -29.7%, while our Czech, Slovak and Hungarian portfolio exceeded expectations by 14.9%, 8.3% and 3.5% respectively. The specific performance ratio of the proprietary portfolio (SPR) reached 91.6 kWh/kWp compared to 113.1 kWh/kWp one year ago (-19.0% year-on year).

Based on the abovementioned performance, Photon Energy's management board confirms its full-year 2022 guidance with revenue expectations of EUR 85 million (up 133.8% YoY) leading to an EBITDA of EUR 24 million (up 150.4% YoY).

Table 2. Estimated Revenues from Electricity Generation in October 2022*

Portfolio	Capacity	Prod. October	Avg. Revenue October	Total Revenue October	YTD Avg. Revenue	YTD Revenue
Unit	MWp	MWh	EUR/MWh	In Euro thousand	EUR/MWh, in 2022	In Euro thousand
Czech Republic	15.0	1,130	733	829	818	12,995
Slovakia	10.4	739	263	141	263	2,071
Hungary	51.8	4,580	172	786	234	15,343
Australia	14.7	1,967	97	191	122	2,332
Total Portfolio	91.9	8,417	238	1,947	301	32,741

* Estimates for revenues are based on management reporting and may deviate from published financial statements due to exchange rates.

** Slovak joint-ventures SK SPV 1 s.r.o., Solarpark Polianka s.r.o., and Solarpark Myjava s.r.o. are consolidated at equity only and therefore not presented in the above table.

3. Reporting on Photon Energy's project pipeline

Project development is a crucial activity in Photon Energy's business model of covering the entire value chain of PV power plants. The main objective of project development activities is to expand the PV proprietary portfolio, which provides recurring revenues and free cash flows to the Group. For financial or strategic reasons Photon Energy may decide to cooperate with third-party investors either on a joint-venture basis or with the goal of exiting the projects to such investors entirely. Ownership of project rights provides Photon Energy with a high level of control and allows locking in EPC (one-off) and O&M (long-term) services. Hence, project development is a key driver for Photon Energy's future growth. The Group's experience in project development and financing in the Czech Republic, Slovakia, Germany, Italy and Hungary is an important factor in selecting attractive markets and reducing the inherent risks related to project development.

Photon Energy is currently developing PV projects in Australia (300.0 MWp), Hungary (90.5 MWp), Romania (227.3 MWp) and Poland (280.8 MWp) and is evaluating further markets for opportunities.

Country	1. Feasibility*	2. Early development	3. Advanced development	4. Ready-to-build technical	5. Under construction	Total in MWp
Romania	14.9	83.7	97.2	3.2	28.3	227.3
Poland	250.9	29.9	-	-	-	280.8
Hungary	64.6	21.8	1.4	2.7	-	90.5
Australia	-	300.0	-	-	-	300.0
Total in MWp	330.4	435.4	98.5	5.9	28.3	898.5

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

Chart 2.c Australian project pipeline in MWp Chart 2.d Hungarian project pipeline in MWp

PV projects have two definitions of capacity. The grid connection capacity is expressed as the maximum of kilowatts or megawatts which can be fed into the grid at any point in time. Electricity grids run on alternating current (AC). Solar modules produce direct current (DC), which is transformed into AC by inverters. Heat, cable lines, inverters and transformers lead to energy losses in the system between the solar modules and the grid connection point. Cumulatively system losses typically add up to 15-20%. Therefore, for a given grid connection capacity a larger module capacity

Chart 2.a Romanian project pipeline in MWp Chart 2.b Polish project pipeline in MWp

(expressed in Watt peak – Wp) can be installed without exceeding the grid connection limit. At times of extremely high production, inverters can reduce the volume of electricity so that the plant stays within the grid connection limits. Photon Energy will refer to the installed DC capacity of projects expressed in Megawatt peak (MWp) in its reporting, which might fluctuate over the project development process.

Projects having reached an advanced development phase, as well as projects for which sufficient details can be disclosed are described in the table below:

Country	Location	Dvt Phase	Project function	Share	MWp	Commercial Model	Land	Grid con nection	Construction permit	Expected RTB
Romania	Siria	5	Own portfolio	100%	5.7	Merchant/PPA	Secured	Secured	Secured	Under construction
Romania	Aiud	5	Own portfolio	100%	4.7	Merchant/PPA	Secured	Secured	Secured	Under construction
Romania	Calafat	5	Own portfolio	100%	6.1	Merchant/PPA	Secured	Secured	Secured	Under construction
Romania	Teius	5	Own portfolio	100%	4.7	Merchant/PPA	Secured	Ongoing	Secured	Under construction
Romania	Sahateni 1	5	Own portfolio	100%	7.1	Merchant/PPA	Secured	Secured	Secured	Under construction
Romania	Faget	4	Own portfolio	100%	3.2	Merchant/PPA	Secured	Secured	Secured	Q4 2022
Romania	Sahateni 2	3	Own portfolio	100%	5.3	Merchant/PPA	Secured	Secured	Secured	Q3 2023
Hungary	Tolna 3-4	4	Own portfolio	100%	2.7	Merchant/PPA	Secured	Secured	Secured	Q4 2022
Hungary	Tolna 5	3	Own portfolio	100%	23.1	Merchant/PPA	Ongoing	Secured	Secured	Q1 2023
Hungary	Tolna 6-13	2	Own portfolio	100%	23.1	Merchant/PPA	Ongoing	Secured	Secured	Q2/Q3 2023
Australia	Yadnarie	2	All options open	100%	300.0	All options open	Secured	Ongoing	Ongoing	Q4 2023

Australia

During the reporting period, Photon Energy had one large scale solar farm under development.

In November 2021, the Group secured 1,200 hectares of land in South Australia to develop a 300 MWp solar farm suitable for Ray-Gen's solar technology in combination with its energy storage solution.

► Development status Raygen project (300 MWp): Based on preliminary designs, Photon Energy will develop a solar generation capacity of 300 MWp with a grid connection capacity of 150 MW. The target storage energy storage capacity is 3.6 GWh, equivalent to 24 hours of full load, to the grid, from storage. This will exceed the 3 GWh capacity of the Ouarzazate Solar Power Station in Morocco, which currently has the world's largest energy storage capacity of any type, excluding pumped hydro.

The project received Crown Sponsorship from the South Australian Government for development approval. Crown Sponsorship is a development process undertaken directly with, in this case, the Department of Energy and Mining, as a development of public infrastructure under section 49(2)(c) of the Development Act 1993 for the approval of the project with the South Australian Government. The proposed development complies with the requirements of the Technical Regulator in relation to the security and stability of the State's power system. In parallel, Photon Energy has applied for grid connection for the project to the Electranet transmission network and has engaged a grid connection consultant to manage the process and conduct Grid Performance Studies which will be submitted for approval.

In Q1 2022, Photon Energy conducted Community consultation sessions with very positive response from both the community and the local council. The local council is very supportive of the project and has expressed interest in working with Photon Energy on accommodation and local supply chain in any areas that will be mutually beneficial to both the local community and the project.

Hungary

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

► Tolna 3-13 projects (25.8 MWp under development, 1.4 MWp commissioned on 9 December 2021 and 1.4 MWp commissioned on 5 May 2022): In total thirteen projects with a total planned installed DC capacity of 28.6 MWp are located in the Tolna region in the south of Hungary. Two power plants have a grid connection capacity of 5.0 MW AC each, whereas 1 MW AC have been secured for each of the remaining eleven projects. The grid connection points have been secured and the negotiations for suitable land plots have been finalized for several projects. Grid connection plans have been initiated and already partially approved, to allow us to conclude grid connection agreements with E.ON. with a validity of two years.

On 8 December 2020, one of the 1MW AC (approx. 1.4 MWp DC) projects was granted a METAR premium of 24,470 HUF/MWh (approx. EUR 68 per MWh) with a maximum supported production of 21,585 MWh over a period of up to 15 years. This achievement results from the approval of the project application to the first pilot tender for the METAR system organized in September 2019. Outside this project, two power plants have been constructed and commissioned to date, with a third one in advanced development after securing the binding extraction and construction permits.

The revenue model will be the direct sale of electricity through a trader on the Hungarian electricity market for the time being. Entering into a contract-for-difference based on a METÁR license (for the project that has proven successful through the auction process) or entering into PPAs in the future, remain possible options. Construction plans include the use of tracking technology allowing bi-facial solar modules to follow the course of the sun, which are expected to achieve a 15-20% higher specific performance than fixed installations.

On 9 December 2021, we completed and grid-connected the first photovoltaic power plant with a capacity of 1.4 MWp near the municipality of Tolna.

On 5 May 2022, we completed and grid-connected the second photovoltaic power plant with a capacity of 1.4 MWp near Tolna.

These latest additions expand the Company's portfolio of proprietary power plants in Hungary to a total of 63, with a combined capacity of 51.8 MWp.

The new power plants represent the first European utilityscale PV power plants in Photon Energy Group's IPP portfolio that the Company operates without a support scheme. The total annual production of each power plant is expected to be around 2.1 GWh, which corresponds to expected annual revenues of EUR 440,000 based on current forward prices for electricity base load in Hungary.

Each of these new power plants extends over 2.2 hectares, uses bi-facial PV modules mounted on single-axis trackers and is connected to the grid of E.ON Dél-dunántúli Áramhálózati Zrt..

The electricity is sold on the national electricity market on a merchant basis. This means no power purchase agreements (PPAs) have been entered into by the Company. However, they may play a role in the plant's future revenue management strategy, alongside other hedging options.

The Company developed the projects fully in-house and delivered engineering, procurement and construction services through its subsidiary Photon Energy Solutions HU Kft. Photon Energy Operations HU Kft. – another of the Group's subsidiaries – will provide long-term monitoring, operations and maintenance services to the power plants.

Romania

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

► Siria (5.7 MWp) project:

In June 2022, the Company broke ground on the construction of its very first Romanian PV power plant with a generation capacity of 5.7 MWp. High efficiency bifacial solar modules mounted on single-axis trackers will deliver around 8.7 GWh of renewable energy annually to the grid of Enel E-Distributie Banat. Located near Șiria in Romania's Arad County, the power plant will extend over 9.3 hectares of greenfield land and will be equipped with some 10,600 solar panels. We have completed the mounting structures using tracker technology and installed all the solar modules.

► Aiud (4.7 MWp) project:

In July 2022, the Company announced that it started the construction of its second Romanian PV power plant in Aiud with a capacity of 4.7 MWp and an expected annual generation of 6.8 GWh that will be delivered to the grid of Distribuție Energie Electrică Romania. Located near Aiud in Romania's Alba County, the power plant will extend over 6.6 hectares of greenfield land and is equipped with around 8,700 solar panels. The project is starting to take shape as well and waits for inverter delivery and installation.

► Calafat (6.1 MWp) project:

In July 2022, the Company announced that it started the construction of another three Romanian PV power plant with a combined capacity of 6.1 MWp and an expected annual generation of 9.6 GWh that will be delivered to the grid of Distribuție Energie Oltenia. Located near Calafat in Romania's Dolj County, the power plants will extend over 10.2 hectares of greenfield land and will be equipped with some 10,800 solar panels. With 100% of the structure installed, currently we are receiving and installing the modules across the project.

► Teius (4.8 MWp) project:

In August 2022, the Company announced that it started the construction of another Romanian PV power plant with a generation capacity of 4.8 MWp and an expected annual generation of 7.1 GWh that will be delivered to the grid of Distribuție Energie Electrică Romania. Located near Teiuș in Romania's Alba County, the power plant will extend over 10 hectares of greenfield land and will be equipped with some 8,700 solar panels. Currently, over 50% of the modules have been installed.

► Săhăteni (7.1 MWp) project:

In September 2022, the Company announced that it started the construction of another Romanian PV power plant with a generation capacity of 7.1 MWp and an expected annual generation of 11.4 GWh that will be delivered to the grid of SDEE Electrica Muntenia Nord. Located near Săhăteni in Romania's Buzău County, the power plant will extend over 10 hectares of greenfield land and will be equipped with some 12,700 solar panels using mounting structures of fixed modules and trackers. Modules have begun to be installed as 100% of the structure is complete.

The commissioning process for these power plants is planned to start from mid-November 2022 and the construction is planned to be finished still this year. All projects to be built in Romania will be selling electricity after grid connection on a merchant basis into the grid.

Upon the commissioning of these plants, the Company will own and operate 95 solar power plants with a combined generation capacity of 120 MWp in its IPP portfolio. A combined 104 MWp will be selling subsidy-free clean electricity directly on the energy market.

Glossary of terms	Definitions
Development phase 1: "Feasibility"	LOI or MOU signed, location scouted and analyzed, working on land lease/purchase, environmental assessment and application for grid connection.
Development phase 2: "Early development"	Signing of land option, lease or purchase agreement, Environmental assessment (environmental impact studies "EIS" for Aus tralia), preliminary design. Specific to Europe: Application for Grid capacity, start work on permitting aspects (construction, connection line, etc.). Specific to Australia: community consultation, technical studies.
Development phase 3: "Advanced development"	In Europe: Finishing work on construction permitting, Receiving of MGT (HU)/ATR (ROM) Letter, Finishing work on permitting for connection line, etc. In Australia: Site footprint and layout finalised, Environmental Impact Statement and development application lodged. Grid con nection studies and design submitted.
Development phase 4: "Ready-to-build technical"	In Europe: Project is technical ready to build, we work on offtake model (if not FIT or auction), securing financing (internal/exter nal). In Australia: Development application approved, offer to connect to grid received and detailed design commenced. Financing and off-take models/arrangements (internal/external) under negotiation.
Development phase 5: "Under construction"	Procurement of components, site construction until the connection to the grid. On top for Australian projects, signature of Financ ing and off-take agreements, reception of Construction certificate, conclusion of connection agreement, EPC agreement, Grid connection works agreements.

4. Enterprise value & Share price performance

4.1 Main market of the Warsaw Stock Exchange

On 31 October 2022 the Company's shares (ISIN NL0010391108) closed at a price of PLN 11.70 (+10.4% MoM), corresponding to a price to book ratio of 2.42. The monthly trading volume amounted to 380,311 shares (vs. an average monthly volume of 452,004 over the past twelve months).

Chart 3. Enterprise value vs. trailing 12 months (TTM) EBITDA

Notes:

EV – Enterprise value is calculated as the market capitalisation as of the end of the reporting month, plus debt, plus minority interest, minus cash. All the balance sheet data are taken from the last quarterly report.

Trailing 12 months EBITDA – defined as the sum of EBITDA reported in the last four quarterly reports; i.e. the sum of EBITDA reported in Q4 2021, Q1 2022, Q2 2022 and Q3 2022.

Chart 5. Total monthly volumes vs. daily closing stock prices

Trading of the Company's shares on the regulated market of the Warsaw Stock Exchange (WSE) (Giełda Papierów Wartościowych w Warszawie) commenced on 5 January 2021. Prior to that date, data presented in this section have been extracted from the trading activity on NewConnect.

Chart 4. Enterprise value / EBITDA and price to book ratio

Price/book ratio – is calculated by dividing the closing price of the stock as of the end of the reporting period by the book value per share reported in the latest quarterly report.

EV/EBITDA ratio – is calculated by dividing the Enterprise Value by the Trailing 12 months (TTM) EBITDA.

4.2 Main market of the Prague Stock Exchange

On 31 October 2022 the share price (ISIN NL0010391108) closed at a level of CZK 61.40 (+7.7% MoM), corresponding to a price to book ratio of 2.44. The Company reports a monthly trading volume of 258,272 shares, compared to an average monthly trading volume of 432,227 over the past twelve months.

4.3 Quotation Board of the Frankfurt stock exchange

On 31 October 2022, the share price (FSX: A1T9KW) closed at a level of EUR 2.33 (+9.0% compared to last month), corresponding to a price to book ratio of 2.27.

The Company reports a monthly trading volume of 3,720 shares, compared to an average monthly trading volume of 41,642 over the past twelve months.

The Company's shares have been traded on the Quotation Board of the Frankfurt Stock Exchange since 11 January 2021.

5. Bond trading performance

In December 2016 the Company issued a 7-year corporate bond with a 6% annual coupon and monthly payments in the Czech Republic. The corporate bond (ISIN CZ0000000815) with a nominal value of CZK 30,000 has been traded on the Free Market of the Prague Stock Exchange since 12 December 2016.

On 27 October 2017 the Company issued a 5-year corporate EUR bond with a 7.75% annual coupon and quarterly coupon payments in Germany, Austria and Luxemburg. The original target volume of EUR 30 million was successfully increased in two steps with all parameters unchanged, to an outstanding amount of EUR 45.0 million prior to the completion of the exchange offer described below. The corporate bond (ISIN DE000A19MFH4) with a nominal value of EUR 1,000 has been traded on the Open Market of the Frankfurt Stock exchange since 27 October 2017. The bond was also listed on the stock exchanges in Berlin, Hamburg, Hannover, Munich and Stuttgart. The total outstanding bond volume of EUR 15.232 million was fully repaid together with the final interest payment to the bondholders on 27 October 2022.

On 17 November 2021, The Company successfully placed its 6.50% Green EUR Bond 2021/2027 (ISIN: DE000A3KWKY4) in the amount of EUR 50 million. The bond issuance was met with strong demand from the Company's existing bondholders, who subscribed to EUR 21.281 million in the exchange that was offered for the existing EUR Bond 2017/2022. The green bond – with an interest rate of 6.50% p.a., paid quarterly – was confirmed by imug | rating with regard to its sustainability in a Second Party Opinion, and can be traded on the Open Market of the Frankfurt Stock Exchange.

On 29 November 2021, the Group successfully increased the bond placement by EUR 5 million with all parameters unchanged, bringing the total outstanding bond volume to EUR 55 million.

Trading of the Company's shares on the regulated market of the Prague Stock Exchange (PSE) (Burza cenných papírů Praha) commenced on 5 January 2021. Prior to that date, Data have been extracted from the trading activity on the Free Market of the Prague Stock Exchange.

Since 28 July 2020, the Company's shares have already been traded on the Free Market (Freiverkehr) of the Munich Stock Exchange.

In addition, the Company's shares have also been traded on the Free Market (Freiverkehr) of the Berlin Stock Exchange since 13 January 2021 and on the Free Market (Freiverkehr) of the Stuttgart Stock Exchange since 14 January 2021.

In May 2022, the Company successfully tapped its 6.50% Green EUR Bond 2021/2027 (ISIN: DE000A3KWKY4) in the amount of EUR 10 million to a total outstanding amount of EUR 65 million.

In October 2022 and November 2022, the Company announced that it has tapped its 6.50% Green EUR Bond 2021/2027 (ISIN: DE000A3KWKY4) in the amount of another EUR 12.5 million to a total outstanding amount of EUR 77.5 million.

The bonds, which bear interest at a rate of 6.50% p.a. with quarterly interest payments, were also offered to bondholders of the existing 2017/2022 corporate bonds in form of an exchange offer with a 1.5% loyalty premium plus the difference in net accrued interest on each exchanged bond. Existing investors registered around 6.0 million euros nominally for exchange, which corresponds to a ratio of 30% of the outstanding bond. Together with the initial exchange offer organized in November 2021, 60% of the outstanding volume of the Company's 2017/2022 bond got exchanged for the new Green EUR Bond.

This tap issuance of the 2021/2027 Green bonds will be included into trading on the Quotation Board trading segment of the Open Market (Freiverkehr) on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) on 14 October 2022.

The Company intends to use the net proceeds of the green bond placement to finance or refinance, in part or in whole, new and/or existing eligible assets, as well as financial instruments that were used to finance such projects or assets, in accordance with the Company's Green Finance Framework, enabling Photon Energy Group to make a significant contribution to an environmentally friendly future.

5.1 Green EUR Bond 2021/27 trading performance in Frankfurt

Green EUR Bond 2021/27 trading performance to date

In the trading period from 17 November 2021 until 31 October 2022, the trading volume amounted to EUR 7.815 million with an opening price of 100.00 and a closing price of 98.90 in Frankfurt. During this period the average daily turnover amounted to EUR 30,409.

Green EUR Bond 2021/27 trading performance in October 2022

In October 2022 the trading volume amounted to EUR 125,000 in Frankfurt with an opening price of 99.75 and a closing price of 98.90. The average daily turnover amounted to EUR 5,952.

5.2 CZK Bond 2016/23 trading performance in Prague

In the trading period from 12 December 2016 until 31 October 2022, the trading volume amounted to CZK 40.500 million with a closing price of 98.00.

6. Investors' calendar

• ► 28-30 November 2022: Deutsches Eigenkapitalforum, Frankfurt
• ► 14 December 2022: Monthly report for November 2022

7. Investor relations contact

Emeline Parry, Investor relations & Sustainability manager E-mail: ir@photonenergy.com

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

Amsterdam, 14 November 2022

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