Petrol d d : Unaudited results of the petrol group and petrol d.d., ljubljana for 2023

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UNAUDITED

RESULTS

of the Petrol Group and Petrol d.d., Ljubljana,

2023

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Petrol, Slovenska energetska družba, d.d., Ljubljana

Dunajska cesta 50, 1000 Ljubljana

Registration number: 5025796000

Companies Register entry: District Court of Ljubljana, entry number: 1/05773/00

Share capital: EUR 52,240,977.04

VAT ID: SI80267432

Telephone: [phone] www.petrol.eu,www.petrol.si

Unaudited results of the Petrol Group and Petrol d.d., Ljubljana, 2023

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TABLE OF CONTENTS
1.	Business highlights of 2023	4
2.	Companies in the Petrol Group	6
3.	Performance analysis of the Petrol Group 2023	7
4.	Alternative performance measures	25
5.	Share and ownership structure	26
6.	Plans for 2024	29
7.	Financial performance of the Petrol Group and Petrol d.d., Ljubljana	31

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1. Business highlights of 2023

The Petrol Group						Unit		2021	2022	2023	Index	Index
						2023 / 2022	2023 / 2021
Revenue from contracts with customers		EUR million	4,960.1	9,456.7	6,982.7	74	141
			1						EUR million	543.4	393.4	677.6	172	125
Adjusted gross profit
Adjusted gross profit + Net Derivative Financial	EUR million	577.6	357.8	730.8	204	127
	1
Instruments
Operating profit							EUR	million	151.1	-7.9	180.2	-	119
Net profit								EUR	million	124.5	-2.7	136.6	-	110
Equity								EUR million	908.7	860.2	923.0	107	102
Total assets								EUR million	2,403.8	2,740.6	2,635.3	96	110
	1, 2								EUR million	238.1	96.3	277.1	288	116
EBITDA
						1				%		43.8	24.5	40.9	167	93
EBITDA/Adjusted gross profit
EBITDA / (Adjusted gross profit + Net Derivative		%		41.2	26.9	37.9	141	92
Financial Instruments)	1
							1			%		79.7	118.9	82.8	70	104
Operating costs/Adjusted gross profit
Operating costs / (Adjusted gross profit + Net Derivative		%		75.0	130.8	76.8	59	102
Financial Insruments)	1
Net debt/Equity	1										0.6	0.6	0.5	86	93
		1										2.1	5.4	1.7	32	81
Net debt/EBITDA
Return on equity (ROE)	1				%		14.3	-0.3	15.3	-	107
Return on capital employed (ROCE)	1			%		10.8	-0.5	12.3	-	114
						1			EUR thousand	70.3	41.3	77.4	187	110
Added value per employee
Earnings per share attributable to owners of the	EUR		2.9	0.1	3.3	-	114
controlling company	3
Share price as at last trading day of the year	3	EUR		25.4	20.0	23.3	117	92
Volume of fuels and petroleum products sold		million tons	3.3	4.1	3.8	92	115
Volume of natural gas sold			TWh		35.4	18.9	16.6	88	47
Volume of electricity sold			TWh	13.8	12.0	12.8	106	93
Revenue from the sales of merchandise and services	EUR million	469.5	520.1	571.2	110	122
1	Alternative performance measure (APM) as defined in chapter Alternative Performance Measures.
2	EBITDA = Operating profit + Net Allowances for operating receivables + Depreciation and amortisation charge.
3	2021 - recalculated by taking into account the share split.
The Petrol Group							Unit	31 December	31 December	31 December	Index	Index
							2021	2022	2023	2023 / 2022	2023 / 2021
Number of employees									6,237	6,224	5,945	96	95
Number of service stations						593	594	594	100	100
Number of e-charging points operated by the Petrol Group				296	417	495	119	167
Number of electricity customers			thousand		225	226	224	99	100
Number of natural gas customers (data for the Geoplin	thousand		47	60	61	101	129
Group are not included)

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EBITDA

Net profit or loss

Net debt/EBITDA

Structure of invested assets

Volumes of fuels and derivatives sold

Number of service stations

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2. Companies in the Petrol Group

	Fuels and	Merchandise	Energy and
The Petrol Group, 31 December 2023	petroleum	Other
and services	solutions
	products
The parent company
Petrol d.d., Ljubljana	•	•	•	•
Subsidiaries
Petrol d.o.o. (100%)	•	•	•	•
Petrol javna rasvjeta d.o.o. (100%)			•
Adria-Plin d.o.o. (75%)	•
Petrol BH Oil Company d.o.o. Sarajevo (100%)	•	•	•
Petrol d.o.o. Beograd (100%)	•	•	•
Petrol Lumennis PB JO d.o.o. Beograd (100%)			•
Petrol Lumennis VS d.o.o. Beograd (100%)			•
Petrol Lumennis ZA JO d.o.o. Beograd (100%)			•
Petrol Lumennis ŠI JO d.o.o. Beograd (100%)			•
Petrol KU 2021 d.o.o. Beograd (100%)			•
Petrol Lumennis KI JO d.o.o. Beograd (100%)			•
Petrol Crna Gora MNE d.o.o. (100%)	•	•
Petrol Trade Handelsges.m.b.H. (100%)	•
Beogas d.o.o. Beograd (100%)			•
Petrol LPG d.o.o. Beograd (100%)	•
Tigar Petrol d.o.o. Beograd (100%)	•
Petrol LPG HIB d.o.o. (100%)	•
Petrol Power d.o.o. Sarajevo (99.7518%)			•
Petrol-Energetika DOOEL Skopje (100%)			•
Petrol Bucharest ROM S.R.L. (100%)			•
Petrol Hidroenergija d.o.o. Teslić (80%)			•
Vjetroelektrane Glunča d.o.o. (100%)			•
IG Energetski Sistemi d.o.o. (100%)			•
Petrol Geo d.o.o. (100%)				•
EKOEN d.o.o. (100%)			•
EKOEN S d.o.o. (100%)			•
Zagorski metalac d.o.o. (75%)			•
Mbills d.o.o. (100%)		•
Atet d.o.o. (96%; 100% voting rights)			•
Atet Mobility Zagreb d.o.o. (100%)			•
Vjetroelektrana Ljubač d.o.o. (100%)			•
E 3, d.o.o. (100%)			•
STH Energy d.o.o. Kraljevo (80%)			•
Petrol - OTI - Terminal L.L.C. (100%)	•
Geoplin d.o.o. Ljubljana (74.34%; 74.49% voting rights)			•
Geoplin d.o.o., Zagreb (100%)			•
Geoplin d.o.o. Beograd (100%)			•
Zagorski metalac d.o.o. (25%)			•
Jointly controlled entities
Geoenergo d.o.o. (50%)			•
Soenergetika d.o.o. (25%)			•
Vjetroelektrana Dazlina d.o.o. (50%)			•
Associates
Plinhold d.o.o. (29.84%)			•
Aquasystems d.o.o. (26%)			•
Knešca d.o.o. (47.27% of the company is owned by E 3, d.o.o.)			•

As at 31 December 2023, the Petrol Group diagram does not include inactive companies.

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3. Performance analysis of the Petrol Group 2023

3.1 Business environment

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

In 2022, high energy commodity prices and rising inflation led to fuel price regulation in the markets where we operate. Fuel price regulation was followed by price regulation for natural gas, electricity and heat. Although the prices of oil and petroleum products, electricity and natural gas had already fallen by the end of 2022, energy commodity prices remained regulated in 2023, which had a significant impact on the Petrol Group's operations in that year.

Economic growth moderated in 2023, mainly in the export-led part of the economy, and private consumption growth was also lower. Investment in buildings and structures, however, continued to grow. Problems in the supply chains are gradually easing and energy commodity prices are falling with more reliable supplies. Confidence indicators have fallen, household purchasing power has declined and financing conditions are tightening. Retail sales are also lower than in 2022, while the consumption of services continued to grow, particularly in relation to tourism. Employment growth and unemployment are slowing down, but there are still significant labour shortages.

In its Autumn Forecast of September 2023, IMAD projected real GDP growth of 1.6 percent for Slovenia in 2023, which is also reflected in the first estimates of the Statistical Office of the Republic of Slovenia calculated on the basis of quarterly data. The annual inflation in Slovenia in 2023 was 7.4 percent (year-average, or 4.2 percent from December 2023 to December 2022). In Croatia, the Croatian Statistical Office estimates inflation at 8.4 percent in 2023 (year- average).

GDP change in %

Source: IMAD, Statistical Office of the Republic of Slovenia, International Monetary Fund

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Inflation (year average), in %

Source: IMAD, Statistical Office of the Republic of Slovenia, International Monetary Fund

Oil and petroleum product price movements

The price of North Sea Brent crude oil in 2023 ranged between USD 71.8 per barrel and USD

96.6 per barrel. The average price stood at USD 82.2 per barrel in 2023, down 19 percent compared to 2022, when the war in Ukraine started. The average price in euros was 21 percent lower. Brent crude oil reached its highest value in 2023 on 27 September and the lowest value on 13 June.

The price of oil rose in the third quarter of 2023, mainly due to OPEC's reduced oil production and increased demand from China, the largest oil importer. In the last quarter, we saw oil prices fall to around USD 80 per barrel, due to the falling demand (especially from China) and a weakening economic outlook. Further OPEC production cuts and the war in the Middle East have also not reversed the price trend, but only limited further declines.

The price of diesel in 2023 ranged between USD 644.8 per metric unit and USD 1,030.5 per metric unit. The average price of diesel in 2023 was USD 832.5 per metric unit.

The price of petrol in 2023 ranged between USD 729.5 per metric unit and USD 1,043.0 per metric unit. The average price of petrol in 2023 was USD 861.3 per metric unit.

Going forward, the main influences on oil demand and crude oil prices will be: the OPEC agreements on the volume of oil to be produced and the state of the global economy (especially in China). Additional geopolitical tensions, such as the escalation of the war in the Middle East and the possible spread of the conflict to neighbouring countries, could have an impact on price increases. On the other hand, the possible onset of recession and a further decline in economic growth in developing countries, especially in the BRICS1 group, could lead to a fall in oil prices.

1 BRICS - an economic association of Brazil, Russia, India, China and South Africa

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Changes in Brent Dated High oil price in 2021-2023 in USD/barrel

Source: Petrol, 2023

Changes in Brent Dated High oil price in 2021-2023 in EUR/barrel

Source: Petrol, 2023

Petroleum product price regulation

Slovenia

The prices of NMB-95 unleaded petrol and diesel have been regulated since 15 March 2022, with a few exceptions. Initially, a decree set the maximum sales prices. In June 2022, a decree exempted motorway and premium fuel prices from regulation and capped the sellers' margins instead of sales prices. The bio-component allowance was excluded from the pricing formula for part of the year, but was reintroduced by decree in December 2022.

From 21 June 2022, the maximum margin on diesel was determined by way of decree in the amount of EUR 0.05910 per litre and on NMB-95 in the amount of EUR 0.06070 per litre. From 17 August 2022, the maximum permitted margin on diesel set by decree stood at EUR 0.09830 per litre and on NMB-95 at EUR 0.09940 per litre.

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On 19 June 2023, the Government of the Republic of Slovenia adopted a new Decree on setting prices for certain petroleum products, according to which the margins will remain capped at EUR 0.0983 per litre for diesel and EUR 0.0994 per litre for NMB-95. The prices of motor fuels at service stations on motorways and expressways are still exempt from regulation, as are premium fuels NMB-100 and iQ diesel. The Decree entered into force on 21 June 2023 and was expected to stay in effect for one year.

On 30 November 2023, the Government of the Republic of Slovenia adopted the Decree amending Decree on setting prices for certain petroleum products, reducing the maximum margin for diesel to EUR 0.0683 per litre and for NMB-95 to EUR 0.0694 per litre for the period from 5 December 2023 to 29 February 2024.

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

Croatia

In Croatia, prices have been regulated since 7 February 2022. For the first month, a decree set the maximum sales prices, and from 7 March 2022 onwards, the decree set the maximum margins. Maximum sales prices were set for a further period from 21 June to 18 July and from 18 to 24 October 2022. From 12 September 2022, the Croatian government has also regulated the price of LPG - for propane-butane blends for large tanks and for cylinders.

On 2 January 2023, the Government of the Republic of Croatia adopted the Decree on the establishment of maximum retail prices, setting maximum margins of EUR 0.0995 per litre for petrol (eurosuper 95), EUR 0.0995 per litre for eurodiesel, EUR 0.0531 per litre for blue diesel, EUR 0.3716 per kg for propane-butane blends for large tanks or gas storage tanks, and EUR 0.8229 per kg for LPG cylinders (7.5 kg or more). The Decree entered into force on 3 January 2023. The Croatian government extended the validity of the Decree every two weeks.

On 5 June 2023, the Government of the Republic of Croatia adopted the Decree on the establishment of maximum retail prices, increasing the maximum margin for petrol (eurosuper

1. to EUR 0.1245 per litre, for eurodiesel to EUR 0.1245 per litre and for blue diesel to EUR 0.0781 per litre. The maximum margin fixed for propane-butane blends for large tanks or gas storage tanks remains at EUR 0.3716 per kg, as does that for LPG cylinders (7.5 kg or more) at EUR 0.8229 per kg. The Decree entered into force on 6 June 2023. The Croatian government extended the validity of the Decree every two weeks.

Serbia

In Serbia, the Government of the Republic of Serbia adopted the Decree on the price capping of petroleum (non-additivated) products, which applied to eurodiesel and unleaded petrol and entered into force on 12 February 2022. The amended Decree of 11 March 2022 sets the maximum retail price with value-added tax for eurodiesel and NMB 95 unleaded petrol at the average wholesale price of petroleum products in Serbia2, increased by RSD 6 per litre (EUR 0.05 per litre), and later (with the amendment of 29 April 2022) increased by RSD 7 per litre

2 The average wholesale prices of NMB-95 unleaded petrol and eurodiesel in the territory of the Republic of Serbia are calculated every Friday by the Ministarstvo rudarstva i energetike.

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