Photon Energy N.V.

Quarterly Report • Sep 14, 2021

Photon Energy N.V.

Monthly Report for August 2021

For the period from 1 to 31 August 2021

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

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

The Company reports 71.2 GWh of electricity produced YTD compared to 55.0 GWh one year ago (+29.5%), propelled by the addition of new Hungarian power plants over the past year (14.1 MWp added since August 2020) and of our two utility-scale PV power plants in Leeton, Australia (14.6 MWp connected to the grid in August 2021). This represents an avoidance of 28,561 tonnes of CO² emissions year-to-date.

Year-to-date the overall performance of the power plants in Photon Energy's portfolio is still in line with forecasts (-0.9%), even though the proprietary portfolio underperformed the audits by 7.9% in August.of

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

1.2 Photon Energy commissioned 14.6 MWp Utilityscale Solar Farms in Australia

During the reporting period, the Company announced that it has commissioned its first two utility-scale photovoltaic (PV) power plants in Australia, with a combined capacity of 14.6 MWp. Located in Leeton, New South Wales, the two facilities expand the Group's installed base in Australia to 14.7 MWp, and its total proprietary portfolio of PV power plants to 89.3 MWp.

The municipality of Leeton is located in the heart of the Murrumbidgee Irrigation Area, famous for the production of wine and citrus fruits. It is also an area of significant energy use; energy which has traditionally been generated by large coal power plants located hundreds of kilometres away.

Representing the first Australian utility-scale PV power plants in the Group's IPP portfolio, both solar farms use bi-facial PV modules mounted on single-axis trackers, and are connected to the grid owned and operated by Essential Energy as a non-scheduled generator. The plants are expected to produce approximately 27.8 GWh of clean electricity per year.

The electricity is sold on the National Electricity Market on a merchant basis, as well as the Large Generation Certificates (LGCs) generated by the plant. This means no power purchase agreements (PPAs) have been entered into by the Company. However, they may play a role in the plants' future revenue management strategy, alongside other hedging options.

Photon Energy developed the projects in-house and delivered engineering, procurement and construction services through its subsidiary Photon Energy Engineering Australia Pty Ltd. The Group's subsidiary Photon Energy Operations Australia Pty Ltd provides long-term monitoring and operations and maintenance services to both power plants.

1.3 Extraordinary General Meeting held on 5 August

On 5 August 2021, the Company held an Extraordinary General Meeting which voted in favour to amend the qualified majority to limit or exclude pre-emptive rights or to designate the management board competent to limit or exclude pre-emptive rights. The adoption of such a resolution now requires a majority of at least 80% of the votes cast. Prior to that date, such a resolution had to be adopted by an absolute majority of the votes cast or a majority of at least two thirds of the votes cast, in case less than half of the issued share capital is represented at the general meeting.

1.4 Photon Energy considers new bond issuance

Shortly after the reporting period, the Company announced its intention to issue a new corporate bond, initially to be offered by way of an exchange offer to holders of the existing 7.75% 2017/2022 bond (DE000A19MFH4) which will mature on 27 October 2022. The new bonds not subscribed by existing bondholders would then be offered by way of a public offering and a private placement to qualified investors in the Federal Republic of Germany, the Republic of Austria, the Grand Duchy of Luxembourg and potentially further Central European countries.

Whether and to what extent the bonds will be issued will depend on the outcome of a pre-sounding with selected institutional investors and the then-prevailing market conditions.

Bankhaus Scheich Wertpapierspezialist AG, Frankfurt am Main, has been mandated as Sole Global Coordinator to organise the pre-sounding activities and to manage the potentially ensuing bond transaction.

1.5 Reporting on Photon Energy's project pipeline

Photon Energy is currently developing PV projects in Australia (160.0 MWp), Hungary (96.5 MWp), Romania (226.2 MWp) and Poland (115.8 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 August 2021

Project name	Capacity	Feed-in-Tariff	Prod. 2021 August	Proj. 2021 August	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in 2021	kWh	kWh	%	kWh	kWh	%	%
Komorovice	2,354	CZK 15,117	255,026	316,400	-19.4%	1,804,511	1,968,785	-8.3%	-11.4%
Zvíkov I	2,031	CZK 15,117	227,829	283,472	-19.6%	1,674,375	1,803,770	-7.2%	-10.8%
Dolní Dvořiště	1,645	CZK 15,117	181,023	213,382	-15.2%	1,254,439	1,309,986	-4.2%	-6.7%
Svatoslav	1,231	CZK 15,117	127,148	162,603	-21.8%	885,686	958,208	-7.6%	-9.5%
Slavkov	1,159	CZK 15,117	140,814	166,949	-15.7%	1,011,322	1,051,547	-3.8%	-6.8%
Mostkovice SPV 1	210	CZK 15,117	23,310	27,479	-15.2%	164,336	174,734	-6.0%	-7.9%
Mostkovice SPV 3	926	CZK 16,240	106,532	123,170	-13.5%	747,449	776,534	-3.7%	-6.2%
Zdice I	1,499	CZK 15,117	176,665	204,364	-13.6%	1,247,388	1,327,736	-6.1%	-9.4%
Zdice II	1,499	CZK 15,117	178,416	206,153	-13.5%	1,275,385	1,346,215	-5.3%	-8.9%
Radvanice	2,305	CZK 15,117	276,433	317,368	-12.9%	1,863,983	1,985,956	-6.1%	-8.6%
Břeclav rooftop	137	CZK 15,117	16,424	15,842	3.7%	119,847	119,685	0.1%	-7.9%
Total Czech PP	14,996		1,709,620	2,037,181	-16.1%	12,048,721	12,823,154	-6.0%	-9.0%
Babiná II	999	EUR 425.12	116,139	131,247	-11.5%	759,889	771,474	-1.5%	-2.8%
Babina III	999	EUR 425.12	115,391	134,115	-14.0%	773,849	780,972	-0.9%	-2.4%
Prša I.	999	EUR 425.12	124,478	140,588	-11.5%	777,765	833,535	-6.7%	-4.7%
Blatna	700	EUR 425.12	85,907	93,841	-8.5%	568,170	573,097	-0.9%	-2.2%
Mokra Luka 1	963	EUR 382.61	128,427	142,006	-9.6%	883,999	869,497	1.7%	-4.8%
Mokra Luka 2	963	EUR 382.61	129,085	142,898	-9.7%	896,954	903,366	-0.7%	-4.1%
Jovice 1	979	EUR 382.61	104,275	118,636	-12.1%	660,057	700,086	-5.7%	-6.9%
Jovice 2	979	EUR 382.61	103,533	118,760	-12.8%	655,950	692,276	-5.2%	-7.1%
Brestovec	850	EUR 382.61	112,835	127,171	-11.3%	735,709	797,605	-7.8%	-12.6%
Polianka	999	EUR 382.61	114,946	130,778	-12.1%	756,335	776,798	-2.6%	-5.3%
Myjava	999	EUR 382.61	124,866	142,021	-12.1%	862,703	880,859	-2.1%	-7.4%
Total Slovak PP	10,429		1,259,882	1,422,061	-11.4%	8,331,380	8,579,565	-2.9%	-5.6%
Tiszakécske 1	689	HUF 34,140	100,755	101,592	-0.8%	661,652	653,632	1.2%	-3.0%
Tiszakécske 2	689	HUF 34,140	100,800	101,724	-0.9%	663,655	656,544	1.1%	-3.1%
Tiszakécske 3	689	HUF 34,140	99,851	100,972	-1.1%	646,585	643,763	0.4%	-3.4%
Tiszakécske 4	689	HUF 34,140	100,800	101,724	-0.9%	666,132	656,544	1.5%	-3.0%
Tiszakécske 5	689	HUF 34,140	100,620	101,592	-1.0%	619,831	653,632	-5.2%	-7.8%
Tiszakécske 6	689	HUF 34,140	100,646	101,724	-1.1%	663,160	656,544	1.0%	-3.0%
Tiszakécske 7	689	HUF 34,140	100,712	101,562	-0.8%	663,802	653,311	1.6%	-2.7%
Tiszakécske 8	689	HUF 34,140	100,071	101,457	-1.4%	659,135	651,742	1.1%	-2.9%
Almásfüzitő 1	695	HUF 34,140	92,987	99,877	-6.9%	650,488	648,310	0.3%	-2.4%
Almásfüzitő 2	695	HUF 34,140	92,958	99,838	-6.9%	636,742	647,938	-1.7%	-2.4%
Almásfüzitő 3	695	HUF 34,140	91,756	99,692	-8.0%	634,008	645,654	-1.8%	-0.9%
Almásfüzitő 4	695	HUF 34,140	95,485	99,991	-4.5%	655,254	649,469	0.9%	-2.4%
Almásfüzitő 5	695	HUF 34,140	95,647	99,739	-4.1%	662,583	646,393	2.5%	-2.4%
Almásfüzitő 6	660	HUF 34,140	95,683	95,854	-0.2%	659,358	622,115	6.0%	-2.4%
Almásfüzitő 7	691	HUF 34,140	95,750	99,177	-3.5%	657,990	642,756	2.4%	-2.5%
Almásfüzitő 8	668	HUF 34,140	96,507	96,870	-0.4%	661,108	629,055	5.1%	-2.3%
Nagyecsed 1	689	HUF 34,140	99,189	100,199	-1.0%	651,445	637,775	2.1%	-2.1%
Nagyecsed 2	689	HUF 34,140	98,977	100,199	-1.2%	653,399	637,775	2.4%	-1.7%
Nagyecsed 3	689	HUF 34,140	99,478	100,360	-0.9%	654,622	638,454	2.5%	-2.4%
Fertod I	528	HUF 34,140	71,310	72,477	-1.6%	514,050	477,567	7.6%	-6.0%
Fertod II No 2	699	HUF 34,140	94,408	99,011	-4.6%	657,388	648,985	1.3%	-5.5%
Fertod II No 3	699	HUF 34,140	92,691	99,011	-6.4%	670,531	648,985	3.3%	-3.6%
Fertod II No 4	699	HUF 34,140	92,863	99,011	-6.2%	664,048	648,985	2.3%	-4.3%

Project name	Capacity	Feed-in-Tariff	Prod. 2021 August	Proj. 2021 August	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in 2021	kWh	kWh	%	kWh	kWh	%	%
Fertod II No 5	691	HUF 34,140	93,621	98,132	-4.6%	667,193	651,280	2.4%	-3.6%
Fertod II No 6	699	HUF 34,140	93,136	99,011	-5.9%	666,074	648,985	2.6%	-3.4%
Kunszentmárton I No 1	697	HUF 34,140	102,690	107,454	-4.4%	685,970	682,839	0.5%	-2.4%
Kunszentmárton I No 2	697	HUF 34,140	102,639	107,459	-4.5%	684,185	682,909	0.2%	-1.9%
Kunszentmárton II No 1	693	HUF 34,140	104,633	110,252	-5.1%	698,439	659,939	5.8%	110.6%
Kunszentmárton II No 2	693	HUF 34,140	105,353	110,154	-4.4%	701,295	660,139	6.2%	76.6%
Taszár 1	701	HUF 34,140	95,185	99,470	-4.3%	665,486	676,222	-1.6%	-4.9%
Taszár 2	701	HUF 34,140	98,659	99,470	-0.8%	669,502	676,222	-1.0%	-4.9%
Taszár 3	701	HUF 34,140	99,433	99,470	0.0%	675,694	676,222	-0.1%	-3.4%
Monor 1	688	HUF 34,140	98,299	104,061	-5.5%	675,876	662,247	2.1%	0.7%
Monor 2	696	HUF 34,140	98,724	104,311	-5.4%	667,190	670,804	-0.5%	-1.0%
Monor 3	696	HUF 34,140	98,727	104,311	-5.4%	668,718	670,804	-0.3%	-0.8%
Monor 4	696	HUF 34,140	99,207	104,311	-4.9%	673,282	670,804	0.4%	-0.9%
Monor 5	688	HUF 34,140	98,340	103,653	-5.1%	673,189	659,956	2.0%	-1.4%
Monor 6	696	HUF 34,140	98,843	104,311	-5.2%	672,332	670,804	0.2%	-1.5%
Monor 7	696	HUF 34,140	99,563	104,311	-4.6%	674,060	670,804	0.5%	-2.5%
Monor 8	696	HUF 34,140	98,346	104,311	-5.7%	671,766	670,804	0.1%	-1.5%
Tata 1	672	HUF 34,140	107,017	119,470	-10.4%	715,856	741,438	-3.5%	7.1%
Tata 2	676	HUF 34,140	90,214	100,254	-10.0%	621,772	647,781	-4.0%	8.9%
Tata 3	667	HUF 34,140	90,855	98,532	-7.8%	622,000	634,609	-2.0%	5.3%
Tata 4	672	HUF 34,140	108,808	122,276	-11.0%	725,126	758,279	-4.4%	7.5%
Tata 5	672	HUF 34,140	107,236	122,682	-12.6%	679,704	760,692	-10.6%	0.4%
Tata 6	672	HUF 34,140	106,987	120,807	-11.4%	721,119	749,307	-3.8%	5.1%
Tata 7	672	HUF 34,140	107,698	119,552	-9.9%	716,763	741,901	-3.4%	5.4%
Tata 8	672	HUF 34,140	109,511	121,318	-9.7%	731,565	752,516	-2.8%	9.0%
Malyi 1	695	HUF 34,140	92,324	101,312	-8.9%	643,919	646,934	-0.5%	63.2%
Malyi 2	695	HUF 34,140	93,901	101,405	-7.4%	646,523	647,674	-0.2%	65.9%
Malyi 3	695	HUF 34,140	93,980	101,405	-7.3%	646,486	647,674	-0.2%	62.8%
Puspokladány 1	1,406	HUF 34,140	229,402	250,904	-8.6%	1,556,708	1,555,311	0.1%	na
Puspokladány 2	1,420	HUF 34,140	241,130	248,219	-2.9%	1,582,525	1,521,920	4.0%	na
Puspokladány 3	1,420	HUF 34,140	234,244	243,540	-3.8%	1,564,612	1,489,514	5.0%	na
Puspokladány 4	1,406	HUF 34,140	235,247	249,029	-5.5%	1,561,873	1,545,090	1.1%	na
Puspokladány 5	1,420	HUF 34,140	239,605	247,714	-3.3%	1,594,215	1,519,474	4.9%	na
Puspokladány 6	1,394	HUF 34,140	230,734	249,564	-7.5%	1,546,157	1,536,290	0.6%	na
Puspokladány 7	1,406	HUF 34,140	235,224	248,890	-5.5%	1,560,890	1,544,392	1.1%	na
Puspokladány 8	1,420	HUF 34,140	235,946	244,140	-3.4%	1,568,602	1,493,763	5.0%	na
Puspokladány 9	1,406	HUF 34,140	235,108	248,756	-5.5%	1,499,697	1,543,702	-2.9%	na
Puspokladány 10	1,420	HUF 34,140	235,845	243,356	-3.1%	1,567,075	1,488,457	5.3%	na
Total Hungarian PP	49,098		7,356,360	7,741,232	-5.0%	49,490,403	49,024,432	1.0%	50.6%
Symonston	144	AUD 301.60	11,638	10,836	7.4%	101,153	102,545	-1.4%	6.2%
Leeton	7,300	AUD 63,03	612,720	671,047	-8.7%	612,720	671,047	-8.7%	na
Fivebough	7,300	AUD 63,03	651,570	717,555	-9.2%	651,570	717,555	-9.2%	na
Total Australian PP	14,744		1,275,928	1,399,438	-8.8%	1,365,443	1,491,148	-8.4%	nm
Total	89,267		11,601,790	12,599,913	-7.9%	71,235,947	71,918,299	-0.9%	29.5%

Notes:

Capacity: installed capacity of the power plant

Prod.: production in the reporting month - Proj.: projection in the reporting month

Perf.: performance of the power plant in reporting month i.e. (production in Month / projection for Month) - 1.

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

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

Perf. YTD: performance of the power plant year-to-date i.e. (YTD prod. in 2021 / YTD proj. in 2021) – 1

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

.

0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Q1 Q2 July August

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

Chart 2. Generation results versus forecast between 1 January 2016 and 31 August 2021

Specific Performance Ratio is a measure of efficiency which shows the amount of kWh generated per 1 kWp of installed capacity and enables the simple comparison of year-on-year results and seasonal fluctuations during the year.

The Company reports 71.2 GWh of electricity produced YTD compared to 55.0 GWh one year ago (+29.5%), propelled by the addition of new Hungarian power plants over the past year (14.1 MWp added since August 2020) and of our two utility-scale PV power plants in Leeton, Australia (14.6 MWp connected to the grid in August 2021). This represents an avoidance of 28,561 tonnes of CO² emissions year-to-date.

Year-to-date the overall performance of the power plants in Photon Energy's portfolio is still in line with forecasts (-0.9%), even though the overall performance of the proprietary portfolio underperformed the audits by 7.9% in August.

The best performance was recorded by our Hungarian portfolio, which slightly exceeded energy forecasts by 1.0%, whereas our

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, Czech, Slovak and Australian portfolios were short of estimates by 6.0%, 2.9% and 8.4% respectively.

The specific performance ratio of the proprietary portfolio (SPR) reached 130.0 kWh/kWp compared to 144.7 kWh/kWp one year ago (-10.2% year-on year).

project development is a key driver for Photon Energy's future growth. The Group's experience in project development and financing in the Czech Republic, Slovakia, Germany, Italy and Hungary is an important factor in selecting attractive markets and reducing the inherent risks related to project development.

Photon Energy is currently developing PV projects in Australia (160.0 MWp), Hungary (96.5 MWp), Romania (226.2 MWp) and Poland (115.8 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
Australia	-		160.0	-	-	160.0
Hungary	68.0	23.1	5.4	-	-	96.5
Romania	115.7	110.5	-	-	-	226.2
Poland	82.0	33.8	-	-	-	115.8
Total in MWp	265.7	167.5	165.4	-	-	598.5

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

PV projects have two definitions of capacity. The grid connection capacity is expressed as the maximum of kilowatts or megawatts which can be fed into the grid at any point in time. Electricity grids run on alternating current (AC). Solar modules produce direct current (DC), which is transformed into AC by inverters. Heat, cable lines, inverters and transformers lead to energy losses in the system be-tween the solar modules and the grid connection point. Cumulatively system losses typically add up to 15-20%. Therefore, for a given grid connection capacity a larger module capacity (expressed in Watt peak – Wp) can be installed without exceeding the grid connection limit. At times of extremely high production, inverters can reduce the volume of electricity so that the plant stays within the grid connection limits. Photon Energy will refer to the installed DC capacity of projects expressed in Megawatt peak (MWp) in its reporting, which might fluctuate over the project development process.

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

Country	Location	Dvt Phase	Project function	Share	MWp	Commercial Model	Land	Grid con nection	Construc tion permit	Expected RTB
Australia	Leeton	5	Own portfolio	100%	7.3	Merchant	Secured	Secured	Secured	Commis
Australia	Fivebough	5	Own Portfolio	100%	7.3	Merchant	Secured	Secured	Secured	sioning finished
Australia	Maryvale	3	Developer	65%	160.0	Co-development	Secured	Ongoing	Secured	Q1 2022
Hungary	Tolna 1	3	Own portfolio	100%	5.4	Contract-for-difference for one project, all options open for three other projects	Secured	Secured	Secured	Q4 2021 /Q1 2022
Hungary	Tolna 2	2	Own Portfolio	100%	23.2	All options open	Ongoing	Secured	Secured	Q3 2022

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

Australia

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

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

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

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

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

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

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

As reported above, the projects in Leeton have been successfully commissioned in the reporting period.

Hungary

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

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

On 8 December 2020, one of the 1MW AC (approx. 1.4 MWp DC) project was granted a METAR premium of 24,470 HUF/MWh (approx. EUR 68 per MWh) with a maximum supported production of 21,585 MWh over a period of up to 15 years. This achievement results from the approval of the project application to the first pilot tender for the METAR system organized in September 2019. 3 other projects have entered into advanced development after secured the binding extraction and construction permits. The local development team is now actively working securing the connection cable consents including easements and final administration documents (Unified Small Power Plant License). Two Projects have entered the procurement phase for EPC materials with planned construction until the end of 2021.

The revenue model will either take the form of a contractfor-difference based on METÁR licenses (for projects proving successful through an auction process in the future), a PPA, or the direct sale of electricity through a trader on the Hungarian electricity market. Construction plans include the use of tracking technology allowing bi-facial solar modules to follow the course of the sun, which are expected to achieve a 15-20% higher specific performance than fixed installations.

Now the team has solidified grid capacity, land, and a commercial structure, the projects will continue to take shape as they move towards construction and realization.

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

Glossary of terms	Definitions
NSW Department for Planning and Environment (DP&E)	NSW DP&E is a government agency in charge of planning and development of New South Wales, to ensure the balance between the commercial business development and the needs of local communities. Each project submitted to DP&E must include environmental impact studies (EIS) and once it is reviewed by DP&E, the project is published and available for the public opinion to submit their comments. If the project is rejected by more than 25 people it is moved to Independent Planning Committee (IPC) for review. If there is no public opposition, the project is approved and DP&E issues the project Development Approval (DA)
Independent Planning Com mittee (IPC)	In case more than 25 public petitions against the project are submitted, IPC needs to investigate further into social and envi ronmental impact of the project. IPC might make some recommendations to be made to the project plan to secure the issu ance of DA.
Essential Energy	Essential Energy is Distribution Network Service Provider, which operates and manages low voltage electricity network in NSW. The process to secure the grid connection with Essential Energy includes GPS and AEMO's license.
Transgrid	Transgrid is a Distribution Network Service Provider (DNSP), which operates and manages the NSW high voltage transmis sion network. Transgrid, in co-operation with Australian Energy Market Operator (AEMO, see description below), is in charge of grid connection approval. To issue its decision Transgrid requires Generation Protection Studies (GPS). GPS is a complete analysis and tests of the impact that a potential power plant would have on the grid. Each power plant is tested under different assumptions (extreme weather conditions, demand/supply changes etc.) and its performance/impact on the grid's stability is thoroughly analysed. Once GPS are completed and accepted, Transgrid is issuing grid connection terms. Those terms are part of the agreement signed with Transgrid, which together with AEMO license secures and finalizes the grid connection process.
Australian Energy Market Operator (AEMO)	AEMO is responsible for operating Australia's largest gas and electricity markets and power systems. AEMO is overlooking all energy producers in NSW and is involved in the process of grid connection approval. AEMO reviews the grid connection terms and GPS studies and issues the license to feed electricity to the grid. AEMO also controls the on-going power generation to make sure that grid stability is maintained.

4. Enterprise value & Share price performance

4.1 Main market of the Warsaw Stock Exchange

On 31 August 2021 the Company's shares (ISIN NL0010391108) closed at a price of PLN 8.40 (+10.5% MoM), corresponding to a price to book ratio of 2.02. The monthly trading volume amounted to 674,279 shares (vs. an average monthly volume of 685,615 YTD).

Chart 4. Enterprise value vs. trailing 12 months (TTM) EBITDA

Notes:

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

Trailing 12 months EBITDA – defined as the sum of EBITDA reported in the last four quarterly reports; i.e. the sum of EBITDA reported in Q3 2020, Q4 2020, Q1 2021, and Q2 2021.

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

Chart 5. Enterprise value / trailing 12 months EBITDA and price to book ratio

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

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

Chart 6. Total monthly volumes vs. daily closing stock prices

4.2 Main market of the Prague Stock Exchange

On 31 August 2021 the share price (ISIN NL0010391108) closed at a level of CZK 47.40 (+7.7% MoM), corresponding to a price to book ratio of 2.02. The Company reports a monthly trading volume of 452,861 shares in August, compared to an average monthly trading volume of 199,583 YTD.

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

4.3 Quotation Board of the Frankfurt stock exchange

On 31 August 2021 the share price (FSX: A1T9KW) closed at a level of EUR 1.82 (+11.3% MoM), corresponding to a price to book ratio of 1.99.

The Company reports a monthly trading volume of 35,160 shares in August, compared to an average monthly trading volume of 50,406 YTD.

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

5. Bond trading performance

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

On 27 October 2017 the Company issued a 5-year corporate EUR bond with a 7.75% annual coupon and quarterly coupon payments in Germany, Austria and Luxemburg. The original target volume of EUR 30 million has been subscribed to in full on

5.1 EUR Bond 2017/22 trading performance

EUR Bond 2017-22 trading performance to date

In the trading period from 25 October 2017 until 31 August 2021, the trading volume amounted to EUR 51.207 million (nominal value, including the volume traded in Berlin, Munich & Stuttgart) with an opening price of 100.00 and a closing price of 102.80 in Frankfurt. During this period the average daily turnover amounted to EUR 52,682.

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

5.2 CZK Bond 2016/23 trading performance in Prague

In the trading period from 12 December 2016 until 31 August 2021, the trading volume amounted to CZK 35.010 million with a closing price of 100.00.

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

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

7 September 2018, before the end of the public placement period originally set until 20 September 2018. The corporate bond (ISIN DE000A19MFH4) with a nominal value of EUR 1,000 has been traded on the Open Market of the Frankfurt Stock exchange since 27 October 2017. The bond is also listed on the stock exchanges in Berlin, Hamburg, Hannover, Munich and Stuttgart. The Group has successfully increased the bond placement by EUR 7.5 million in 2019, and EUR 7.5 million in 2020 with all parameters unchanged. The total outstanding bond volume amounts to EUR 45.0 million as of the end of the reporting period.

EUR Bond 2017/22 trading performance in August 2021

In August 2021 the trading volume amounted to EUR 593,000 with an opening price of 103.25 and a closing price of 102.80 in Frankfurt. The average daily turnover amounted to EUR 26,955.

Chart 8. MIN, MAX and closing monthly prices

6. Summary of all information published by the Issuer as current reports for the period covered by the report

In the period covered by this report the following current report has been published in the EBI (Electronic Database Information) system of the Warsaw Stock Exchange during or after the reporting period.

► EBI report 1 – 20.08.2021 – Report on the Scope of Compliance with the WSE Best Practice.

In the period covered by this report the following current reports have been published in the ESPI (Electronic Information Transmission System) system of the Warsaw Stock Exchange:

• ► ESPI report 31 04.08.2021 Non-public Report List of all shareholders entitled to vote at the Extraordinary General Meeting to be held on 5 August 2021.
• ► ESPI report 32 05.08.2021 List of shareholders holding at least 5% of votes at the Extraordinary General Meeting of shareholders held on 5 August 2021.
• ► ESPI report 33 05.08.2021 The Minutes of the EGM of shareholders held on 5 August 2021.
• ► ESPI report 34 10.08.2021 Photon Energy commissions 14.6 MWp utility-scale solar farms in Australia.
• ► ESPI report 35 10.08.2021 2Q2021 Quarterly report and 1H2021 interim consolidated financial statements
• ► ESPI report 36 12.08.2021 Monthly report for July 2021.

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

• ► ESPI report 37 02.09.2021 Photon Energy Considers New Bond Issuance (title missing).
• ► ESPI report 38 02.09.2021 Photon Energy Considers New Bond Issuance (with title).

7. Investors' calendar

• ► 14 October 2021: Monthly report for September 2021
• ► 10 November 2021: Entity and consolidated quarterly reports for Q3 2021
• ► 15 November 2021: Online presentation of Photon Energy Group's Q3 2021 results
• ► 15 November 2021: Monthly report for October 2021
• ► 22-24 November 2021: Deutsches Eigenkapitalforum in Frankfurt
• ► 14 December 2021: Monthly report for November 2021

8. Investor relations contact

Emeline Parry, Investor relations & 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 September 2021

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