Enel Russia : EL5-Energo publishes its audited consolidated financial results for the 1st quarter of 2023 in accordance with IFRS

PRESS-RELEASE

PJSC EL5-Energo Pavlovskaya 7, bld. 1, Moscow, Russia

T [phone] ext. 7824 [e-mail] el5-energo.ru

EL5-ENERGO PUBLISHES ITS AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE 1ST QUARTER OF 2023 IN ACCORDANCE WITH IFRS

• According to the results of the 1st quarter of 2023 PJSC EL5-Energo improved key revenue indicators, EBITDA, net income and net debt due to continued significant growth in revenue from the sale of capacity, as well as positive dynamics of market prices for electricity YoY.
• Since March 1 2023, the company is receiving a fee for the full capacity of the Kola wind farm under the Renewable energy program. The total installed capacity of renewable generation facilities of PJSC EL5-Energo is 291 MW.

Moscow, May 15th 2023 - PJSC EL5-Energo publishes its audited consolidated financial results for the 1st three months of 2023 in accordance with the International Financial Reporting Standards (IFRS).

MAIN FINANCIAL HIGHLIGHTS (millions of RUB)

	1Q 2023	1Q 2022	Change
Revenues	16 391	14 650	+11,9%
EBITDA	4 076	3 255	+25,2%
EBIT	3 344	2 389	+40,0%
Net income	2 106	1 908	+10,4%
Net debt at the end of the period	27 493	29 7771	-7,7%

• Revenue increased by approximately 12% primarily due to the following factors:
• • Revenue growth from the sale of capacity by 32% due to a significant increase in revenues from the renewable energy DPM program after the commissioning of the Kola WPS, an increase in the price of KOM, KOMMod, as well as the indexation of regulated tariffs.
  • An increase in revenue from the sale of electricity by 5% due to an increase in market prices against the background of the indexation of gas tariffs in 2022, which compensated a decrease in the volume of electricity sales. Additional support was provided by the indexation of electricity tariffs.
  • Revenue growth from the sale of thermal energy by 11% primarily due to the indexation of regulated tariffs.
• EBITDA increased by more than 25%, mainly due to the growth of marginal profit from the sale of power, electricity and heat. In particular, reducing the load of less efficient steam power units allowed to keep the growth of variable costs below the growth of revenue from electricity and heat sales. As for fixed costs, their growth compared to the 1st quarter of 2022 is primarily due to the general inflationary trends of the past year, as well as the change in the company's perimeter following the start of operation of the Kola wind farm.
• EBIT increased by 40%, which is significantly higher than EBITDA dynamics, mainly due to a decrease in depreciation charges by 16% compared to the same period last year, following a significant impairment of fixed assets, which the company recognized by the end of 2022.
• Net income increased by more than 10%, which is significantly less than the EBIT growth. This dynamic is

1 As of December 31st 2022

PRESS-RELEASE

PJSC EL5-Energo Pavlovskaya 7, bld. 1, Moscow, Russia

T [phone] ext. 7824 [e-mail] el5-energo.ru

primarily explained by the increase in net financial expenses following the end of the capitalization period in assets of interest expenses on project financing of the Kola wind farm, as well as the general increase in market interest rates compared to Q1 2022.

• Net debt showed a decrease of almost 8% from RUB 29.8 billion as of the end of 2022 up to RUB 27.5 billion at the end of the 1st quarter of 2023 on the background of the end of investments in the construction of the Kola wind farm and its commissioning. At the same time, operating cash flow for the current quarter significantly exceeded current capital expenditures, as well as investments in the implementation of equipment modernization projects under the KOMMod.

MAIN OPERATIONAL HIGHLIGHTS

	1Q 2023	1Q 2022	Change
Net power production (GWh)	5 676	6 101	-7,0%
including:
- gas output	5 447	6 019	-9,5%
- wind output	228	83	+176,5%
Power sales (GWh)	6 491	6 793	-4,5%
Heat sales (thousand Gcal)	1 364	1 426	-4,3%

• Net power production decreased in the 1st quarter of 2023 on the background of a high base of electricity supply in the same period last year and restrained dynamics of consumption growth in the most regions of Company presence.
  In more detail, the decrease of conventional gas units output was partially offset by strong indicators of generation based on renewable energy sources:
• • the supply of gas units output decreased by 9.5% in the 1st quarter of 2023, mainly due to a decrease in demand for Konakovskaya GRES from the System operator and an increase of nuclear power plants production in Central Russia;
  • the release of wind production, thanks to the commissioning of the Kola wind farm, showed a significant increase and partially compensated negative dynamics of gas units output.
• Power sales decreased on the background of the above-mentioned dynamics of electricity supply.
• Heat sales decreased by 4.3%, mainly due to the influence of higher Ural region temperatures in the in the 1st quarter of 2023.

About PJSC EL5-Energo

PJSC EL5-Energo is a Russian generating company. PJSC EL5-Energo operates three gas power plants - Konakovskaya GRES, Nevinnomysskaya GRES and Sredneuralskaya GRES, and two wind farms - Azovskaya WPP and Kolskaya WPP. The company's total gross installed power capacity is 5 940.9 MW and thermal capacity is 1 927 Gcal/h. PJSC EL5-Energo's authorized capital is 35,371,898,370 roubles and is divided into ordinary shares with a par value of 1 rouble. The PJSC LUKOIL share in the company's authorised capital is 56.44%, UROC Limited is 7.4%, PIIT-7 LLC is 5.54%, and other minority shareholders' share is 30.62%. PJSC EL5-Energo shares are listed in Level 1 the Moscow Exchange quotation list.

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