Photon Energy N.V.

Regulatory Filings • Oct 14, 2022

Photon Energy N.V.

Monthly Report for September 2022

For the period from 1 to 30 September 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 Photon Energy Group Continues Strong Growth in Third Quarter 2022 on the Back of Record Revenues from Electricity Sales

The Company's 91.9 MWp proprietary portfolio of PV power plants generated a robust production volume of 37.0 GWh of electricity in the third quarter of 2022, representing a 6.6% YOY increase. Current electricity market prices have led to electricity sales revenues of EUR 15.073 million, representing a 129.6% YOY increase from electricity revenues of EUR 6.566 million in the third quarter of 2021. The Q3 2022 revenues generated stand 37.5% above the revenues of EUR 10.963 million reported in Q2 2022, a record quarter for Photon Energy Group.

The Company reports 103.0 GWh of electricity produced YTD compared to 82.3 GWh one year ago (+25.2%) propelled by 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 40,358 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 30.794 million in the first nine months of 2022, compared to EUR 19.402 million for the full year 2021 (+58.7%).

In September the electricity generated by our proprietary portfolio was short of estimates by -12.6%. Our Czech, Slovak, Hungarian and Australian portfolios underperformed energy forecasts by -13.3%, -17.5%, -9.9% and -16.7%, 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

After 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, 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. As a reminder, the Company's proprietary portfolio of PV power plants has a total capacity of 91.9 MWp. An additional seven new PV projects are currently under construction in Romania, with a total capacity of 28.3 MWp.

1.3 Photon Energy Group Taps its 6.50% Green Bond to 75 Million Euros

After the reporting period, the Company announced that it has 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 75 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 got 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 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.

Bankhaus Scheich Wertpapierspezialist AG, Frankfurt am Main, was appointed as Sole Global Coordinator & Bookrunner for the private placement of the tap issuance.

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 1.5Reporting 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 September 2022

Project name	Capacity	Revenue1	Prod. 2022 Sep tember	Proj. 2022 September	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in September	kWh	kWh	%	kWh	kWh	%	%
Komorovice	2,354	935 EUR	205,833	246,626	-16.5%	2,271,680	2,199,660	3.3%	10.7%
Zvíkov I	2,031	931 EUR	181,853	224,702	-19.1%	1,975,807	2,014,042	-1.9%	3.7%
Dolní Dvořiště	1,645	937 EUR	128,458	162,713	-21.1%	1,446,593	1,462,219	-1.1%	1.8%
Svatoslav	1,231	935 EUR	100,355	119,328	-15.9%	1,095,993	1,069,870	2.4%	9.1%
Slavkov	1,159	943 EUR	113,739	127,385	-10.7%	1,242,213	1,170,519	6.1%	8.3%
Mostkovice SPV 1	210	940 EUR	18,210	20,561	-11.4%	204,267	193,897	5.3%	9.7%
Mostkovice SPV 3	926	990 EUR	86,479	94,435	-8.4%	929,461	951,236	-2.3%	9.4%
Zdice I	1,499	924 EUR	146,037	159,344	-8.4%	1,550,029	1,476,458	5.0%	10.1%
Zdice II	1,499	924 EUR	147,883	152,243	-2.9%	1,571,856	1,487,688	5.7%	9.1%
Radvanice	2,305	948 EUR	209,116	236,627	-11.6%	2,316,856	2,206,695	5.0%	8.9%
Břeclav rooftop	137	945 EUR	13,514	15,037	-10.1%	146,566	133,764	9.6%	8.4%
Total Czech PP	14,996		1,351,477	1,559,000	-13.3%	14,751,320	14,366,049	2.7%	7.9%
Babiná II	999	271 EUR	81,867	94,068	-13.0%	909,882	859,370	5.9%	5.9%
Babina III	999	271 EUR	81,437	95,534	-14.8%	903,150	870,259	3.8%	3.4%
Prša I.	999	270 EUR	83,874	104,533	-19.8%	962,362	931,400	3.3%	8.6%
Blatna	700	273 EUR	60,095	69,424	-13.4%	668,590	637,936	4.8%	5.1%
Mokra Luka 1	963	258 EUR	89,312	113,714	-21.5%	1,082,384	976,256	10.9%	7.4%
Mokra Luka 2	963	257 EUR	90,787	116,456	-22.0%	1,097,506	1,012,595	8.4%	7.3%
Jovice 1	979	263 EUR	72,391	92,172	-21.5%	831,859	786,658	5.7%	11.0%
Jovice 2	979	263 EUR	71,936	91,345	-21.2%	825,403	778,083	6.1%	10.9%
Brestovec	850	257 EUR	85,881	101,058	-15.0%	934,294	892,282	4.7%	11.4%
Polianka	999	261 EUR	82,702	96,007	-13.9%	906,571	866,590	4.6%	5.9%
Myjava	999	259 EUR	92,240	107,732	-14.4%	1,019,585	981,544	3.9%	4.5%
Total Slovak PP	10,429		892,522	1,082,045	-17.5%	10,141,586	9,592,973	5.7%	7.3%
Tiszakécske 1	689	393 EUR	67,875	74,803	-9.3%	775,692	723,206	7.3%	4.2%
Tiszakécske 2	689	393 EUR	68,305	74,922	-8.8%	779,290	726,214	7.3%	4.4%
Tiszakécske 3	689	392 EUR	66,563	73,639	-9.6%	757,235	712,252	6.3%	4.1%
Tiszakécske 4	689	393 EUR	68,540	74,922	-8.5%	777,071	726,214	7.0%	3.8%
Tiszakécske 5	689	393 EUR	68,189	74,803	-8.8%	776,428	723,206	7.4%	10.6%
Tiszakécske 6	689	393 EUR	67,457	74,922	-10.0%	776,695	726,214	7.0%	4.2%
Tiszakécske 7	689	393 EUR	68,047	74,775	-9.0%	778,469	722,860	7.7%	4.3%
Tiszakécske 8	689	392 EUR	67,644	74,683	-9.4%	767,491	721,211	6.4%	3.6%
Almásfüzitő 1	695	405 EUR	71,839	76,862	-6.5%	768,717	719,985	6.8%	5.8%
Almásfüzitő 2	695	405 EUR	69,992	76,826	-8.9%	747,168	719,580	3.8%	4.1%
Almásfüzitő 3	695	405 EUR	68,571	76,687	-10.6%	745,729	717,176	4.0%	4.4%
Almásfüzitő 4	695	405 EUR	71,691	76,972	-6.9%	769,653	721,245	6.7%	4.2%
Almásfüzitő 5	695	405 EUR	71,818	76,734	-6.4%	779,398	717,955	8.6%	4.4%
Almásfüzitő 6	660	405 EUR	71,899	73,424	-2.1%	774,896	690,563	12.2%	4.4%
Almásfüzitő 7	691	405 EUR	71,657	76,251	-6.0%	771,645	713,864	8.1%	4.1%
Almásfüzitő 8	668	405 EUR	72,170	74,295	-2.9%	757,822	698,318	8.5%	1.7%
Nagyecsed 1	689	403 EUR	59,004	75,700	-22.1%	764,792	708,373	8.0%	4.9%
Nagyecsed 2	689	403 EUR	58,129	75,700	-23.2%	757,606	708,373	7.0%	3.7%
Nagyecsed 3	689	402 EUR	58,656	75,848	-22.7%	764,565	709,194	7.8%	4.4%
Fertod I	528	401 EUR	56,907	55,359	2.8%	600,189	529,106	13.4%	3.4%
Fertod II No 2	699	404 EUR	74,357	76,104	-2.3%	782,017	719,897	8.6%	4.8%
Fertod II No 3	699	404 EUR	74,442	76,104	-2.2%	777,469	719,897	8.0%	2.4%
Fertod II No 4	699	404 EUR	74,115	76,104	-2.6%	772,915	719,897	7.4%	2.7%

Project name	Capacity	Revenue	Prod. 2022 September	Proj. 2022 September	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in September	kWh	kWh	%	kWh	kWh	%	%
Fertod II No 5	691	403 EUR	73,855	76,288	-3.2%	773,868	722,357	7.1%	2.4%
Fertod II No 6	699	403 EUR	73,981	76,104	-2.8%	768,713	719,897	6.8%	1.9%
Kunszentmárton I No 1	697	391 EUR	67,541	79,826	-15.4%	795,884	757,202	5.1%	3.1%
Kunszentmárton I No 2	697	390 EUR	70,506	79,815	-11.7%	794,709	757,261	4.9%	3.4%
Kunszentmárton II No 1	693	391 EUR	72,170	80,094	-9.9%	805,060	734,753	9.6%	2.4%
Kunszentmárton II No 2	693	389 EUR	72,162	79,996	-9.8%	808,021	734,854	10.0%	2.4%
Taszár 1	701	394 EUR	70,646	78,928	-10.5%	768,692	749,740	2.5%	2.4%
Taszár 2	701	394 EUR	71,163	78,928	-9.8%	780,014	749,740	4.0%	3.3%
Taszár 3	701	394 EUR	71,289	78,928	-9.7%	782,092	749,740	4.3%	2.8%
Monor 1	688	403 EUR	69,843	77,462	-9.8%	789,740	734,411	7.5%	3.9%
Monor 2	696	403 EUR	69,528	76,369	-9.0%	780,888	741,807	5.3%	3.9%
Monor 3	696	404 EUR	70,079	76,369	-8.2%	790,274	741,807	6.5%	4.9%
Monor 4	696	403 EUR	69,866	76,369	-8.5%	789,655	741,807	6.5%	4.2%
Monor 5	688	403 EUR	70,059	76,921	-8.9%	790,175	731,597	8.0%	4.3%
Monor 6	696	403 EUR	69,626	76,369	-8.8%	788,756	741,807	6.3%	4.2%
Monor 7	696	402 EUR	69,787	76,369	-8.6%	787,722	741,807	6.2%	3.9%
Monor 8	696	403 EUR	70,269	76,369	-8.0%	793,595	741,807	7.0%	4.9%
Tata 1	672	413 EUR	73,771	79,354	-7.0%	844,555	814,861	3.6%	5.0%
Tata 2	676	409 EUR	68,242	73,204	-6.8%	735,882	715,802	2.8%	5.0%
Tata 3	667	409 EUR	68,697	71,789	-4.3%	738,186	701,321	5.3%	5.3%
Tata 4	672	414 EUR	74,560	81,499	-8.5%	859,429	833,712	3.1%	5.4%
Tata 5	672	414 EUR	73,094	81,802	-10.6%	852,752	836,408	2.0%	10.8%
Tata 6	672	414 EUR	71,793	80,337	-10.6%	829,833	823,649	0.8%	2.5%
Tata 7	672	413 EUR	73,956	79,410	-6.9%	851,151	815,375	4.4%	5.8%
Tata 8	672	414 EUR	75,425	80,750	-6.6%	861,104	827,246	4.1%	4.9%
Malyi 1	695	396 EUR	62,855	73,464	-14.4%	762,365	715,222	6.6%	5.1%
Malyi 2	695	396 EUR	62,984	73,540	-14.4%	780,725	716,032	9.0%	7.2%
Malyi 3	695	396 EUR	63,229	73,540	-14.0%	780,705	716,032	9.0%	7.2%
Puspokladány 1	1,406	89 EUR	127,339	170,467	-25.3%	1,763,934	1,684,340	4.7%	1.5%
Puspokladány 2	1,420	400 EUR	147,305	165,187	-10.8%	1,829,492	1,644,672	11.2%	3.5%
Puspokladány 3	1,420	398 EUR	149,460	160,995	-7.2%	1,804,700	1,609,345	12.1%	3.1%
Puspokladány 4	1,406	399 EUR	145,110	169,296	-14.3%	1,779,304	1,673,385	6.3%	2.1%
Puspokladány 5	1,420	398 EUR	151,802	164,730	-7.8%	1,833,070	1,641,423	11.7%	2.8%
Puspokladány 6	1,394	88 EUR	147,430	167,018	-11.7%	1,779,778	1,660,078	7.2%	3.0%
Puspokladány 7	1,406	88 EUR	144,497	169,193	-14.6%	1,782,694	1,672,492	6.6%	2.4%
Puspokladány 8	1,420	398 EUR	149,089	161,498	-7.7%	1,800,082	1,613,700	11.6%	2.7%
Puspokladány 9	1,406	88 EUR	145,736	169,093	-13.8%	1,786,687	1,671,609	6.9%	6.3%
Puspokladány 10	1,420	397 EUR	146,795	160,839	-8.7%	1,798,841	1,608,009	11.9%	2.7%
Tolna 1	1,358	399 EUR	163,360	181,687	-10.1%	1,869,224	1,838,064	1.7%	na
Tolna 2	1,358	398 EUR	166,173	181,687	-8.5%	1,269,735	1,249,900	1.6%	na
Total Hungarian PP	51,814		5,322,938	5,908,317	-9.9%	60,905,035	56,969,870	6.9%	9.6%
Symonston	144	243 EUR	12,808	14,047	-8.8%	101,850	105,024	-3.0%	-12.1%
Leeton	7,261	86 EUR	969,076	1,172,604	-17.4%	8,627,122	8,857,984	-2.6%	402.8%
Fivebough	7,261	84 EUR	970,332	1,156,811	-16.1%	8,493,709	8,735,726	-2.8%	384.1%
Total Australian PP	14,744		1,952,216	2,343,462	-16.7%	17,222,681	17,698,733	-2.7%	380.2%
Total	91,905		9,519,154	10,892,824	-12.6%	103,020,621	98,627,624	4.5%	25.2%

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.

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

- Realized electricity price in Hungary.

- 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 103.0 GWh of electricity produced YTD compared to 82.3 GWh one year ago (+25.2%) propelled by 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 40,358 tonnes of CO² emissions yearto-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 30.794 million in the first nine months of 2022, compared to EUR 19.402 million for the full year 2021 (+58.7%).

5,000 10,000 15,000 20,000 Cumulative production in MWh

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Q1 Q2 Q3

0

In September the electricity generated by our proprietary portfolio was short of estimates by -12.6%. Our Czech, Slovak, Hungarian and Australian portfolios underperformed energy forecasts by - 13.3%, -17.5%, -9.9% and -16.7%, respectively. The specific performance ratio of the proprietary portfolio (SPR) reached 103.6 kWh/kWp compared to 124.1 kWh/kWp one year ago (-16.5% 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).

Portfolio	Capacity	Prod. September	Avg. Revenue September	Total Revenue September	YTD Avg. Reve nue	YTD Revenue
Unit	MWp	MWh	EUR/MWh	In Euro thousand	EUR/MWh, in 2022	In Euro thousand
Czech Republic	15.0	1,351	939	1,269	825	12,167
Slovakia	10.4	893	263	168	240	1,930
Hungary	51.8	5,323	367	1,956	239	14,558
Australia	14.7	1,952	86	168	124	2,141
Total Portfolio	91.9	9,519	634	3,560	271	30,794

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

* 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 (227.7 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	20.9	69.9	105.0	3.6	28.3	227.7
Poland	250.9	29.9	-	-	-	280.8
Hungary	64.6	23.1	1.4	1.4	-	90.5
Australia	-	300.0	-	-	-	300.0
Total in MWp	336.4	422.9	106.4	5.0	28.3	899.0

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

Chart 4.c Australian project pipeline in MWp Chart 4.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 4.a Romanian project pipeline in MWp Chart 4.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%	3.6	Merchant/PPA	Secured	Secured	Ongoing	Q3 2022
Romania	Sahateni 2	3	Own portfolio	100%	5.3	Merchant/PPA	Secured	Secured	Secured	Q3 2023
Hungary	Tolna 3-4	3	Own portfolio	100%	2.7	Merchant/PPA	Secured	Secured	Secured	Q4 2022
Hungary	Tolna 5-13	2	Own portfolio	100%	23.1	Merchant/PPA	Ongoing	Secured	Secured	Q2 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 already 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. The project starts to take shape as we have completed the mounting structures using tracker technology and installed almost all of the total of 10,600 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 will be equipped with around 8,700 solar panels. The project is starting to take shape as well with the mounting structures using tracker technology finished and 100% of the modules already installed.

► 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. Currently we are finishing the substructure installation.

► 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.

► 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.

The commissioning process for all these power plants is planned to be initiated around 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 30 September 2022 the Company's shares (ISIN NL0010391108) closed at a price of PLN 10.60 (-25.5% MoM), corresponding to a price to book ratio of 2.29. The monthly trading volume amounted to 714,645 shares (vs. an average monthly volume of 448,207 over the past twelve months).

Chart 5. 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 2021, Q4 2021, Q1 2022 and Q2 2022.

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 6. 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.

Chart 7. Total monthly volumes vs. daily closing stock prices

4.2 Main market of the Prague Stock Exchange

On 30 September 2022 the share price (ISIN NL0010391108) closed at a level of CZK 57.00 (-23.0% MoM), corresponding to a price to book ratio of 2.43. The Company reports a monthly trading volume of 557,105 shares, compared to an average monthly trading volume of 429,105 over the past twelve months.

4.3 Quotation Board of the Frankfurt stock exchange

On 30 September 2022, the share price (FSX: A1T9KW) closed at a level of EUR 2.14 (-29.6% compared to last month), corresponding to a price to book ratio of 2.24.

The Company reports a monthly trading volume of 35,052 shares, compared to an average monthly trading volume of 42,165 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.

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.

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 is also listed on the stock exchanges in Berlin, Hamburg, Hannover, Munich and Stuttgart. The total outstanding bond volume amounts to EUR 15.232 million as of the reporting date.

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 5.0 million with all parameters unchanged, bringing the total outstanding bond volume to EUR 55.0 million.

5.1 EUR Bond 2017/22 trading performance in Frankfurt

EUR Bond 2017/22 trading performance to date

In the trading period from 25 October 2017 until 30 September 2022, the trading volume amounted to EUR 32.361 million with an opening price of 100.00 and a closing price of 100.00 in Frankfurt. During this period the average daily turnover amounted to EUR 25,868.

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, the Company announced that it has tapped its 6.50% Green EUR Bond 2021/2027 (ISIN: DE000A3KWKY4) in the amount of another EUR 10 million to a total outstanding amount of EUR 75 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.

EUR Bond 2017/22 trading performance in September 2022

In September 2022 the trading volume amounted to EUR 128,000 in Frankfurt with an opening price of 101.00 and a closing price of 100.00. The average daily turnover amounted to EUR 5,818.

Chart 8. The Company's EUR bond 2017/22 trading on the Frankfurt Stock Exchange in Germany

5.2 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 30 September 2022, the trading volume amounted to EUR 7.690 million with an opening price of 100.00 and a closing price of 99.75 in Frankfurt. During this period the average daily turnover amounted to EUR 32,585.

Green EUR Bond 2021/27 trading performance in September 2022

In September 2022 the trading volume amounted to EUR 342,000 in Frankfurt with an opening price of 100.51 and a closing price of 99.75. The average daily turnover amounted to EUR 15,545.

5.3 CZK Bond 2016/23 trading performance in Prague

In the trading period from 12 December 2016 until 30 September 2022, the trading volume amounted to CZK 40.500 million with a closing price of 98.00.

6. Investors' calendar

• ► 10 November 2022: Entity and consolidated quarterly reports for Q3 2022
• ► 14 November 2022: Online presentation of Photon Energy Group's Q3 2022 results
• ► 14 November 2022: Monthly report for October 2022
• ► 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, 13 October 2022

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