Zespól Elektrowni Patnów Adamów Konin S A : 1Q 2022 Results Presentation

1Q 2022 Results

May 26, 2022

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ZE PAK Group - 1Q 2022 summary

Key operational and financial data	1Q 2022		Change y/y
Sale of electricity:	1.58	TWh	+27.42%
• Electricity from own production:	0.90	TWh	+12.50%
• Electricity from resale:	0.68	TWh	+54.55%
Achieved average electricity sale price (1)	546.51	PLN/MWh	+105.22%
Average purchase price of EUA	259.15	PLN/MWh	+152.36%
Sale revenues:	996	m PLN	+115.58%
EBITDA:	129	m PLN	+396.15%
Net result:	103	m PLN	-
CAPEX:	55	m PLN	-5.17%
Indebtedness:	603	m PLN	+299.34%
Cash (2)	322	m PLN	+475.00%
Net debt / EBITDA:	0.81	x	+17.39%

1. Average price, calculated as electricity sales revenues (own production, from resale and system service) divided by sales volume.
2. Cash and cash equivalents and other financial short-term assets.

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ZE PAK Group - 1Q 2022 summary

REVENUES

EBITDA

996
130
	⬆ 251,38%
383
	462
	131
483	109
	222
1Q 2022	1Q 2021

Other

Electricity from resale

Electricity from own production

EBITDA = 129

11

⬆ 396,15%

Depreciation

118

EBIT

EBITDA = 26

34

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1Q 2022

1Q 2021

The increase in revenues in Q1 2022 as compared to Q1 2021 results from the higher achieved sales price of electricity and the increased volume of energy sales (both from own production and from resale).

The higher result at the EBITDA level is due to a much better ratio of electricity sales prices to purchase prices of carbon dioxide emission allowances.

In Q1 2022, there was a slight decrease in revenues from main support sources (LTCs, capacity market, property rights, system services) compared to Q1 2021, the difference was PLN 13 million.

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SELECTED ELECTRICITY MARKET DATA

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Electricity prices

	1550
	1250															max.
PLN/MWh	950															min.
650
										622,94			629,94			weighted
	350							410,32								average
					310,05
		271,28
	50
		1Q 2021			2Q 2021		3Q 2021		4Q 2021			1Q 2022
	920
	820														651,76
	720
PLN/MWh											548,78
620
520							371,26
420	276,13			330,45
	320
	220	24-Jan-2113-Feb-21	5-Mar-21	25-Mar-21	14-Apr-214-May-21	24-May-21	13-Jun-21	3-Jul-2123-Jul-21	12-Aug-21	1-Sep-2121-Sep-21	11-Oct-21	31-Oct-21	20-Nov-2110-Dec-21	30-Dec-21	19-Jan-228-Feb-22	28-Feb-2220-Mar-22
	4-Jan-21
							price		quarterly average

On the day-ahead market at TGE SA a strong upward trend continues. Price increases in the first quarter were dictated by the high demand for energy in Poland and Western Europe. High price levels were still stimulated by the unstable situation related to gas supplies in Europe and the increase in the prices of this fuel, as well as the increase in coal prices. Factors related to market volatility have intensified after Russia's aggression in Ukraine. Planned repairs of generating units as well as unplanned shutdowns of power units, caused both by failures of generating units, but also by a deficit in coal supplies, also contributed to the price increases. The direction of cross-border electricity trade also continued to influence the level of prices. Poland was an exporter of energy in the next consecutive quarter. The weighted average BASE price on the Day-Ahead Market on TGE SA for the first quarter of 2022 was at the level of PLN 629.94 / MWh, which means an increase compared to the first quarter of 2021 by PLN 358.21 / MWh, i.e. by approximately 132% .

The arithmetic mean of the daily clearing rates for the reference futures contract BASE_Y-23 in the first quarter of 2022 was at the level of PLN 651.76 / MWh, which means an increase in relation to the first quarter of 2021 by PLN 376.63 / MWh, i.e. by approximately 136% . The sharp increase in ratings took place shortly after the start of Russia's hostilities in Ukraine in February 2022. The development of this armed conflict will continue to have a significant impact on the Electricity Futures Markets in Poland and Europe (unstable gas and coal situation in Europe, and thus strong price increases in the markets).

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