ALTEO Energy Services Public : 2024 Q1 – Investor presentation - 21.05.2024.

ALTEO NYRT.

INVESTOR PRESENTATION -

ALTEO Group

Q1 2024

(non1-audited financial income)

Q1 2024 NON-AUDITED FINANCIAL INCOME

This information was not compiled on the basis of international accounting standard IAS 34 - Interim Financial Reporting; the information contained therein are non-audited in terms of 2024 results, and have not been audited by an independent auditor. This presentation is for advance information purposes only.

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KEY ECONOMIC EVENTS IN 2024

• In line with previous expectations, the energy market opportunities that emerged in 2022 and continued in 2023 did not survive for long, with prices starting to fall in 2023.
• Thanks to its operational structure, its strategy based on sustainability and renewable energy production, its diversified portfolio and its outstanding team of professionals, ALTEO has been able to actively seize arising opportunities. With a view to its long-termstrategy ALTEO has seized every opportunity to stabilize its profitability at a higher level than before the energy price boom in 2022, despite the moderating energy market price environment. Accordingly, taking into account the energy prices in the first quarter of 2024, ALTEO achieved an outstanding result, almost double that of Q1 2021, the last year before the price boom.

ALTEO consolidated quarterly EBITDA

	10 000
million	8 000
6 000
HUF
4 000
	2 000
	-

2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

• T H E C O N S O LI D A TE D E BI TD A A M O U N T ED T O H U F 4 . 5 BI L LI O N , down from a record HUF 7.8 billion in Q1 2023, due to gradually declining energy market opportunities since 2022, which ended with exceptionally high earnings.
• T H E C O N S O LI D A TE D N E T P R O F I T W AS HU F 2 .6 BI L LI O N, down from HUF 3.1 billion in Q1 2023, mainly due to operating items.

• ALTEO intends to continue to exploit all the opportunities afforded by the market in the period ahead. ALTEO's management considers the results of the major segments and business lines to be successful, highlighting the growth of the waste management business.
• • ALTEO continues to pursue the active I N V E S T ME N T A C TI V I TY described in its strategy. 2024 will be the year when most of the investments started in 2023 will be delivered. The gas engine installation project in Sopron and a solar power plant in the Tereske region are expected to be completed in Q2, and an additional gas engine and battery energy storage project will be finished in Q3.
  • In addition to the above, ALTEO is continuously exploring energy and waste management investment opportunities in Hungary and the region, and it continues to identify opportunities for strategic cooperation between MOL Nyrt. and ALTEO.

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KEY EVENTS IN 2024

• As of January 10, 2024, László Hegedűs joined ALTEO's management as Deputy CEO for Strategic HR and Communications. Mr. Hegedűs has more than 20 years of professional experience, including as HR Director at the Central European University and as International HR Manager at BlackRock's Service Centre.
• January 18, 2024 - FE-GROUPINVEST ZRT. HAS WON A HUF 300 MILLION GRANT in the call for applications announced by the Energy Strategy Institute, which it will use toprovide technological support for transitioning waste from products subject to product charges collected in the deposit refund system introduced from January 2024, into the circular economy. This enables the ALTEO subsidiary to implement an investment project that will allow it to appropriately sort and treat more than 15 thousand tons of waste collected in the deposit refund system per year.
• On March 1, 2024, ALTEO Nyrt., which is listed on the premium market of the Budapest Stock Exchange, was awarded the "Company with Long-term Share Price Increase" prize at the Best of BSE 2023 awards ceremony.
• On April 19, 2024, the General Meeting adopted ALTEO's 2023 annual report and Integrated Report.
• On April 19, 2024, the General Meeting made a decision on the payment of a dividend of HUF 4 billion and an additional extraordinary dividend of HUF 4 billion.
• ALTEO has won to build a RRF storage facility with a total capacity of 70MW in the tender. The signing of the Grant Agreement is in under process.

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ALTEO GROUP PORTFOLIO

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ALTEO GROUP PORTFOLIO

		GAS ENGINE AND
RENEWABLE ENERGY	INDUSTRIAL AND	HEATING POWER PLANTS,
PRODUCTION	COMMERCIAL SERVICES	ENERGY STORAGE
		FACILITIES

	ALTEO Group has significant			ALTEO Group facilitates the efficient		ALTEO Group operates
	competences, among others,			energy management of its consumers		high-efficiency, combined heat
in exploiting renewable energy sources.	through the services provided to industrial		and electricity (cogeneration) plants,
					facilities.		and energy storage facilities.
WIND FARMS	BORSODCHEM	HEATING POWER PLANTS
Ács - 2 MW	- BC-Erőmű - operation - 47 MWe / 296 MWth	- Ózd Power Plant- 4.9 MWe / 4.9 MWth
- Bábolna - 15 MW	- BC-Power - operation - 50 MWe /123 MWth	- Tiszaújváros Heating Power Plant- 9.4 MWe /
- Bőny - 25 MW	MOL Petrolkémia		45.8 MWth
- Jánossomorja - 2 MW	- TVK Power Plant - operation- 36 MWe / 297 MWth	- Kazincbarcika Heating Power Plant - 9.3 MWe /
- Pápakovácsi - 2 MW	- Tisza-WTP - treated water service		54.3 MWth
- Törökszentmiklós - 1.5 MW					- Füredi út Gas Engine Block Power Plant -
RENEWABLE GAS	Heineken Soproni Sörgyár		18.6 MWe / 16.5 MWth
- Debrecen - landfill gas - 1.1 MW	-	heat supply service	- Győr Power Plant - 18 MWe / 24 MWth
- Nagykőrös - biogas - 2 MW	MAINTENANCE SITE	- Sopron Power Plant - 6.2 MWe / 37.7 MWth
HYDROPOWER PLANTS
-	Százhalombatta	ELECTRICITY STORAGE FACILITIES
- Felsődobsza - 0.9 MW
-	Polgár	- Füredi út Storage Facility - 6 MWe
- Gibárt - 1 MW
-	Füredi út	- Kazincbarcika Storage Facility - 5 MWe
SOLAR POWER PLANTS
Domaszék - 2 MW					ELECTRICAL BOILERS
- Monor - 4 MW					- Tiszaújváros Heating Power Plant - 6 MWth
- Balatonberény - 6.2 MW					- Kazincbarcika Heating Power Plant - 6 MWth
- Nagykőrös - 7 MW					- Sopron Power Plant - 5.1 MWth
- Tereske - 20 MW

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS (IFRS)

Consolidated Statement of Profit or Loss

	3.31.2024	3.31.2023	Change	Change
			HUF million	%
data in HUF million	non-audited	non-audited	over previous	over previous
year	year
Revenues	26 678	36 056	(9 379)	(26%)
Material expenses	(18 397)	(23 961)	5 564	(23%)
Personnel expenses	(2 220)	(1 635)	(585)	36%
Depreciation and amortization	(1 092)	(948)	(143)	15%
Other revenues, expenses, net	(1 732)	(2 761)	1 030	(37%)
Capitalized own production	157	141	16	(11%)
Impairment loss	-	-	-	N/A
Operating Profit or Loss	3 395	6 892	(3 496)	(51%)
Net financial income	16	34	(19)	54%
Profit or loss before taxes	3 411	6 926	(3 515)	(51%)
Income tax expenses	(787)	(1 231)	444	(36%)
Net profit or loss	2 625	5 695	(3 071)	(54%)
Of which the owners of the Parent Company are entitled to:	2 549	5 744	(3 195)	(56%)
Of which the minority interest is entitled to:	75	(49)	124	255%
Base EPS (HUF/share)	128,44	291,31	(162,88)	(56%)
Diluted EPS (HUF/share)	127,90	291,22	(163,32)	(56%)
EBITDA*	4 487	7 840	(3 353)	(43%)

Consolidated Comprehensive Statement of Profit or Loss

EBITDA was down by HUF 3,353 million, with sales revenue dropping

by HUF 9,379 million.

Most important changes in operating profit and loss items:

• REVENUE: The decrease is mainly due to the significantly lower energy market price

environment in the Heat and Electricity Production segment. The decline was

somewhat offset by higher revenues in the Retail segment due to a considerably

larger electricity portfolio and higher wind turbine revenues resulting from the

exceptionally windy weather in Q1.

• MATERIAL EXPENSES: Falling energy market prices are also having an impact here,

but the reduction in margins available in the energy market has meant that

expenditures have fallen at a lower rate than revenues.

• DEPRECIATION: Depreciation exceeds the 2023 level, in line with the larger asset

portfolio.

Net profit or loss

Other comprehensive income (after income tax)

Comprehensive income

Of which the owners of the Parent Company are entitled to:

Of which the minority interest is entitled to:

2 625	5 695	(3 071)	(54%)
1 257	(1 527)	2 784	182%
3 881	4 168	(287)	(7%)
3 806	4 217	(411)	(10%)
75	(49)	124	165%

• OTHER REVENUES, EXPENSES: In addition to the lower CO2 price, the increase in

other income was due to the improvement in the scheduling accuracy of Renewable

Production Management and the lower scheduling surcharge on account of the

introduction of the balancing price cap by MAVIR in December.

*In the opinion of the Company's management, the profit category that can most reliably be used to measure the profitability of the Group is EBITDA (a profit category from which financial items, taxes, depreciation, and non-systematic reductions - typically impairments - have been

removed). Therefore, impairment and local business taxes and innovation contributions - if any - have been removed from the Other Revenues	7
and Other Expenditures lines that are used to provide a more detailed elaboration of the EBITDA in the above table.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS (IFRS)

Consolidated Statement of Profit or Loss

	3.31.2024	3.31.2023	Change	Change
			HUF million	%
data in HUF million	non-audited	non-audited	over previous	over previous
year	year
Revenues	26 678	36 056	(9 379)	(26%)
Material expenses	(18 397)	(23 961)	5 564	(23%)
Personnel expenses	(2 220)	(1 635)	(585)	36%
Depreciation and amortization	(1 092)	(948)	(143)	15%
Other revenues, expenses, net	(1 732)	(2 761)	1 030	(37%)
Capitalized own production	157	141	16	(11%)
Impairment loss	-	-	-	N/A
Operating Profit or Loss	3 395	6 892	(3 496)	(51%)
Net financial income	16	34	(19)	54%
Profit or loss before taxes	3 411	6 926	(3 515)	(51%)
Income tax expenses	(787)	(1 231)	444	(36%)
Net profit or loss	2 625	5 695	(3 071)	(54%)
Of which the owners of the Parent Company are entitled to:	2 549	5 744	(3 195)	(56%)
Of which the minority interest is entitled to:	75	(49)	124	255%
Base EPS (HUF/share)	128,44	291,31	(162,88)	(56%)
Diluted EPS (HUF/share)	127,90	291,22	(163,32)	(56%)
EBITDA*	4 487	7 840	(3 353)	(43%)

Consolidated Comprehensive Statement of Profit or Loss

•	FINANCIAL INCOME: A lower interest rate environment compared to last year
	resulted in lower interest income, offset by higher profit on foreign exchange
	differences and lower interest paid.
• INCOME TAXES: The lower profit before taxes compared to last year is responsible
	for the drop in income taxes.
•	NET PROFIT dropped by 54% compared to the base period, as a result of the
	above operational impacts.
•	OTHER COMPREHENSIVE INCOME: ALTEO enters into hedging transactions in
	order to secure the purchase price of raw materials and, thereby, the profit
	content on heat and electricity sold at fixed prices, and to fix the interest rates on
	loans. Other comprehensive income includes the result of changes in the fair
	value of transactions as financial instruments, that hedge the price of gas used to
	produce electricity at the time of setting the official heat prices and/or sold at

Net profit or loss

Other comprehensive income (after income tax)

Comprehensive income

Of which the owners of the Parent Company are entitled to:

Of which the minority interest is entitled to:

2 625	5 695	(3 071)	(54%)
1 257	(1 527)	2 784	182%
3 881	4 168	(287)	(7%)
3 806	4 217	(411)	(10%)
75	(49)	124	165%

fixed forward prices, the EUR/HUF exchange rate, and interest rate changes, until

the real transaction is closed. The values shown on this line are not indicative of

future trends in profit or loss.

*In the opinion of the Company's management, the profit category that can most reliably be used to measure the profitability of the Group is EBITDA (a profit category from which financial items, taxes, depreciation, and non-systematic reductions - typically impairments - have been

removed). Therefore, impairment and local business taxes and innovation contributions - if any - have been removed from the Other Revenues	8
and Other Expenditures lines that are used to provide a more detailed elaboration of the EBITDA in the above table.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS)

Assets and receivables			data in HUF million
	3.31.2024	12.31.2023	Change	Change
	HUF million	%
	non-audited	audited	over previous	over previous
	year	year
Non-current assets	45 162	43 573	1 589	4%
Current assets	46 780	48 405	(1 625)	(3%)
of which effect of Other comprehensive income	823	877	(54)	(6%)
of which cash and cash equivalents	17 388	24 345	(6 957)	(29%)
of which Inventories and emission allowances	3 608	2 041	1 567	77%
of which Trade receivables and accruals	16 547	15 560	988	6%
of which Other current assets	8 414	5 582	2 832	51%
TOTAL ASSETS	91 942	91 978	(35)	(0%)

Equity and liabilities			data in HUF million
	3.31.2024	12.31.2023	Change	Change
	HUF million	%
	non-audited	audited	over previous	over previous
	year	year
Equity	37 736	33 854	3 881	11%
of which effect of Other comprehensive income	(1 132)	(2 389)	1 257	(53%)
Long-term liabilities	27 990	28 653	(663)	(2%)
of which effect of Other comprehensive income	-	-	-	0%
of which credit, loans, bonds, leasing	24 139	24 398	(260)	(1%)
of which Other long-term liability	3 852	4 255	(403)	(9%)
Short-term liabilities	26 216	29 470	(3 254)	(11%)
of which effect of Other comprehensive income	1 955	3 266	(1 311)	(40%)
of which credit, loans, bonds, leasing	2 219	2 234	(16)	(1%)
of which Trade payables and accruals	15 938	16 101	(163)	(1%)
of which Other short-term liability	6 104	7 869	(1 765)	(22%)
TOTAL EQUITY and LIABILITIES	91 942	91 978	(35)	(0%)

• INVESTMENTS, CAPITAL EXPENSES Several capacity expansion and efficiency improvement projects are underway during the period, with delivery expected in H1 2024.
• CURRENT ASSETS The growth in inventories is due to an increase in CO2 and EEOS stocks, while the increase in short-term receivables is due to advances paid for investments. The decrease in short-term liabilities can be traced back to the lower income tax payable as a result of the settlement of the tax liability arising from the release of the previous development reserve.
• In addition to loan repayments set out in contracts, the portfolio of LONG-TERMLIABILITIES, SHORT-TERMLOANS decreased with the early repayment of the HUF

0.4 billion loan from FE-GROUP INVEST Zrt.

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HEAT AND ELECTRICITY PRODUCTION AND MANAGEMENT

Heat and electricity
	3.31.2024	3.31.2023	Change HUF	Change %
			million
data in HUF million	non-audited	non-audited	over previous	over previous
year	year
Revenue	16 031	29 749	(13 718)	(46%)
Capitalized own production	59	88	(29)	(33%)
Material expenses	(10 961)	(20 584)	9 624	(47%)
Personnel expenses	(504)	(368)	(136)	37%
Other revenues and Other expenses	(1 711)	(2 747)	1 036	(38%)
EBITDA*	2 914	6 137	(3 223)	(53%)
Allocated administrative expenses	(255)	(191)	(64)	33%
EBITDA II*	2 659	5 946	-3 287	-55%

*EBITDA: In the opinion of the Company's management, this is the profit category that can most reliably be used to measure the profitability of the Group (a profit category from which financial items, taxes, depreciation, and non-systematic reductions - typically impairments - have been removed).

• Following the high electricity prices in 2023, a significant drop is seen in 2024. There is a substantial decrease in the price of district heating, but this does not lead to a loss of profit. The change in energy prices had a negative impact on prices in the market for ancillary services, which negatively impacted the segment's EBITDA. Overall, the so-called Spark Spread decreased, causing a significant negative impact compared to last year's outstanding figures. In the balancing energy market, MAVIR introduced a balancing price cap in December 2023, which resulted in a higher result for the Renewable Production Management sub-segment, while the Energy Production sub-segment experienced a negative price effect, offset by higher volumes than last year.
• The segment's SALES REVENUE decreased by 46% (HUF 13.7 billion) compared to the first quarter of the excellent year 2023, which followed the changes in world market prices and as a result adapted to the dynamics of the market environment, while at the same time the Renewable Production Management sub-segment also experienced a decline in its revenue.
• The change in MATERIAL EXPENSES was mainly due to decreasing energy prices and lower Renewable Production Management expenses, in line with the decline in Sales Revenue.
• The decrease in OTHER EXPENSES is due to the CO2 quota expenses on the one hand and, on the other, the improvement in the scheduling accuracy of Renewable Production Management and the lower surcharge on account of the introduction of the balancing price cap by MAVIR in December.

• As a result of these factors, EBITDA II dropped by HUF 3.287 billion (-55%).

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