Q1 2024

Quarterly Statement

13 May 2024

Shaping the future together worldwide

Across 5 countries at 17 company sites

At Energiekontor, people from different countries come together to work together to achieve a secure, environmentally friendly and affordable energy supply for today and tomorrow.

United

Kingdom 3

Germany

France

2

United

2

9

States

Portugal

1

With 38 Group-owned wind and solar parks

Our Group-owned wind and solar parks have a total nominal power of over 380 megawatts. Four projects with more than 100 megawatts are currently under construction for the Group's own park portfolio, which will increase the total generation capacity of the parks to around 500 megawatts once commissioned.

3

31

wind parks

Approx. 60 MW

wind and

4

solar parks

wind parks

Approx. 285 MW

Approx. 38 MW

Germany

United Kingdom

Portugal

Energiekontor AG ∙ Quarterly Statement Q1 2024

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Energiekontor at a glance

Brief portrait

A new way of thinking. For over 30 years, Energiekontor has stood for a solid business policy and extensive experience in renewable energies. Founded in Bremerhaven, Germany, in 1990, the company is among the pioneers in its industry and is now one of Germany's leading project developers and operators of wind and solar parks. Its core business ranges from the planning and construction to the operational management of wind and solar parks in Germany and abroad. In addition, Energiekontor operates 38 own wind and solar parks with a total nominal power of more than 380 megawatts. The company also plays a pioneering role in economic terms and aims to realise wind and solar parks at market prices in all target markets as quickly as possible, independently of state subsidies.

Along with its headquarters in Bremen, Germany, Energiekontor has offices in Bremerhaven, Hagen im Bremischen, Aachen, Augsburg, Berlin, Berlin-Spandau, Potsdam and Hildesheim. The company also has branch offices in England, Scotland, Portugal, France and the United States.

Since being established, Energiekontor has a proud track record of realising over 160 wind and solar park projects with a total nominal power of around 1.4 gigawatts. This corresponds to an investment volume of more than 2 billion euros. Energiekontor AG is listed in the SDAX and the TecDAX of the German Stock Exchange in Frankfurt and can be traded on all German stock markets.

Company strategy

Energiekontor's business model is unique in Germany and allows the company to generate double-digit organic annual growth rates with a high level of financial stability. Operating costs and project management expenses are largely covered by ongoing income from power generated by the Group's own portfolio and park management. Energiekontor adds around half of Group-developed projects to its own portfolio and sells the other half to investors. This means that more and more funds are available each year to fuel the average organic EBT growth of around 10 to 20 percent per year.

2023 to 2028 growth strategy

Energiekontor issued the 2023 to 2028 growth strategy in the 2022 financial year and confirmed it again with the publication of the 2023 financial figures on 28 March 2024. The company aims to sustainably increase its Group EBT by an average of 15 percent per year in the period from 2023 to the end of 2028.

By applying this strategic approach, Energiekontor expects to remain on a positive growth trajectory, which should lead to a doubling of the underlying Group EBT from around 60 million euros to 120 million euros in the 2028 financial year. The underlying average growth rate is a linear benchmark that may be surpassed or fallen short of in day-to-day project development business, as project postponements may lead to profit being deferred to the next financial year. The growth strategy must therefore be considered over the entire period.

Energiekontor AG ∙ Quarterly Statement Q1 2024

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Share and shareholder structure

Shareholder structure1

Other retail and

private investors

Free float

Founders

40.4%

(according to the

(Dr. B. Wilkens,

definition of the German

G.Lammers)

Stock Exchange)

51.0%

43.4%

Universal Investment 3.0%

Union Investment 5.2%

Treasury shares 0.4%

Key share data

WKN ∙ ISIN

531350 ∙ DE0005313506

Bloomberg ∙ Reuters

EKT

Class of shares

No-par-value bearer shares

Listing

German Stock Exchange, Frankfurt, Germany

Marketplaces

XETRA, Frankfurt, all other German marketplaces

Market segment

General Standard

Designated sponsor

ODDO BHF Corporates & Markets AG

Indices

SDAX, TecDAX, MSCI Global Small Cap Index

Share capital1

€ 13,959,359.00

Number of shares1

13,959,359

Initial listing

25 May 2000

Last share split

7 November 2001 (1:4)

1As at 31 March 2024.

Energiekontor AG ∙ Quarterly Statement Q1 2024

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Share price performance

110

100

90

80

70

31.12.2023

31.01.2024

29.02.2024

31.03.2024

30.04.2024

Energiekontor

SDAX price index

TecDAX price index

RENIXX index

Marketplace: XETRA, indexed closing prices in %; source: Refinitiv; as at 9 May 2024.

Despite an overall improvement in market conditions worldwide, renewable energy stocks in particular remained under heavy pressure in the first quarter of 2024. Falling electricity prices, overcapacity in the solar sector and the persistently high interest rate environment had a negative impact.

On 15 December 2023, Energiekontor announced the successful completion of the sale of a Scottish wind park project and the resulting increase in the earnings forecast for the 2023 financial year to a Group EBT of 80 to 100 million euros (previous year: 62.9 million euros) in an ad hoc notice and press release. The positive news bolstered share price in January 2024, until it gradually adjusted to the downward trend of the Renewable Energy Industrial Index (RENIXX) over the course of the following month, while the SDAX and TecDAX continued to tread water. The RENIXX tracks the world's 30 leading listed companies in the renewable energy sector. The Energiekontor AG share is not listed on the RENIXX, but the index serves as a benchmark for many investors.

On 28 March 2024, Energiekontor published its financial figures for the 2023 financial year and, with a historically high Group EBT of 95.5 million euros, was on target with the forecast it had recently raised at the upper end of the anticipated range. The pull-forward effect from the 2024 financial year to the 2023 financial year included in this led to a comparatively subdued outlook for the 2024 financial year and a very good outlook for the 2025 and 2026 financial years. The reduced short-term outlook for the 2024 financial year had an additional negative impact on share price performance from the end of March, despite subsequent positive announcements concerning the start of construction of further wind and solar parks that are intended for the Group's own portfolio and will make an additional contribution to Group EBT in future.

The Energiekontor AG share started the 2024 financial year at its highest price level to date of 82.70 euros. It reached its lowest price for the period of 61.10 euros (down 26.1 percent) on 17 April 2024 and closed the reporting period at 64.10 euros (down 22.5 percent). The SDAX share price index closed the three- month period with a slight increase (up 2.2 percent), as did the TecDAX share price index, climbing by 3.4 percent. The RENIXX recorded a loss of 13.1 percent. The market capitalisation of all outstanding Energiekontor AG shares amounted to approximately 895 million euros as at 31 March 2024.

Energiekontor AG ∙ Quarterly Statement Q1 2024

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Share buyback programme of 19 May 2023

By resolution of the Annual General Meeting of Energiekontor AG on 20 May 2020, the Management Board is authorised pursuant to Section 71 (1) No. 8 of the German Stock Corporation Act (AktG) to acquire and redeem treasury shares of up to 10 percent of the share capital without the redemption or its implementation requiring a further resolution of the Annual General Meeting.

Utilising the above authorisation the company resolved on a new share buyback programme on 19 May 2023. The new share buyback programme authorises Energiekontor to acquire up to 80,000 treasury shares in the period from 19 May 2023 to 30 June 2024 at the latest, whereby the buyback may not exceed the aforementioned number of shares or is limited to a total purchase price of a maximum of 9,000,000 euros. Shares are purchased on the stock exchange.

The transactions from the share buyback programme are published weekly on Energiekontor's websiteand can be viewed there. As at 31 March 2024, Energiekontor acquired a total of 77,000 shares at an average price of 73.58 euros as part of the share buyback programme 2023/2024.

Directors' dealings

No share transactions requiring disclosure by members of the company's executive bodies ("directors' dealings") were received by or submitted to Energiekontor AG in the reporting period.

Notifications of voting rights

No notifications of voting rights were received by or submitted to Energiekontor AG in the reporting period.

Shareholder structure

There were no significant changes in the shareholder structure during the reporting period. The two founders and anchor shareholders of the company continued to hold over 50 percent of Energiekontor AG's share capital as at 31 March 2024. The company did not receive any further information or notifications relevant to voting rights after the reporting date until the publication of this quarterly statement.

Investment research

Energiekontor shares were being monitored by a total of five analyst firms. At the time of publication of this interim statement, four analysts issued a buy recommendation for the share and one analyst issued a hold recommendation. The average target price was 123.00 euros per share. A continuously updated overview of analysts' estimates, selected research reports and the consensus for the current financial year are available on the company's website.

Energiekontor AG ∙ Quarterly Statement Q1 2024

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Macroeconomic conditions

Key interest rate development in %

31/12/2023

31/03/20241

European Central Bank (ECB)

4.50

4.50

British National Bank (Bank of England)

5.25

5.25

US Federal Reserve (Fed)

5.25 - 5.50

5.25 - 5.50

Source: Statista GmbH. 1Interest rates unchanged on 13 May 2024.

With still no sign of the hoped-for economic recovery in 2023, but the widely feared recession having failed to materialise, the Kiel Institute for the World Economy (IfW) predicted a slight year-on-year slowdown in global economic growth to 2.8 percent in 2024 in its March 2024 forecast (previous year: 3.3 percent). The forecast was made against the background of widely varying economic momentum in the advanced economies: the robust economy in the United States to date, the recent weak growth in the eurozone and China's unexpectedly poor performance. However, the overall decline in commodity and energy prices and the sharper fall in the rate of inflation since autumn 2023 are likely to encourage global economic growth in the current financial year.

At 0.5 percent, overall economic growth in the eurozone was already weak in 2023. The expected stronger wage momentum, reduced inflation, revival in consumer spending and an anticipated easing of monetary policy from the second half of 2024 mean that gross domestic product in the eurozone is expected to rise by 0.7 percent in 2024, which is slightly higher than in the previous year but marks another year of transition. Economic growth is likely to speed up again from 2025.

With the economy entering negative territory in Germany in the last quarter of 2023 and German GDP growth stagnating at 0.3 percent in 2023 as a whole, according to calculations by the German Federal Statistical Office, the German government downgraded its original GDP growth forecast for 2024 from 1.3 percent to 0.2 percent in February 2024. The German economy is emerging from the crisis more slowly than hoped, especially in light of the ongoing unstable global economic environment and increasing shortage of labour, which represents a particular challenge for the German jobs market. The German government expects a gradual domestic economic recovery over the course of 2024, underpinned by a further rise in real wages, the continued reduction in consumer price inflation and the robust labour market. The conditions to date, however, remain challenging, including an inflation rate above the 2 percent target, multiple geopolitical crises, growth-dampening effects from the recent monetary policy tightening, including on foreign trade, and the requirement to prioritise federal financial planning as a result of the ruling by the Federal Constitutional Court in November 2023.

On 5 March 2024, the IfW also adjusted its original winter forecast and reduced its GDP forecast for Germany from 0.9 percent to 0.1 percent for 2024. The correction was made in the expectation that German economic output is likely to continue to stagnate, particularly in the first half of 2024.

Energiekontor AG ∙ Quarterly Statement Q1 2024

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Sector and market development

Power generation in Germany (onshore wind, solar)

According to preliminary calculations by the Center for Solar Energy and Hydrogen Research Baden- Württemberg (ZSW) and the German Association of Energy and Water Industries (BDEW) as at 26 April 2024, renewable energies covered around 56 percent of Germany's gross electricity consumption in the first quarter of 2024. This represents a further increase of around six percentage points compared to the same period of the previous year. Renewable energies accounted for around 50 percent of gross electricity consumption in the first quarter of 2023 and for the first time more than half - at just under 52 percent - for the year as a whole in 2023. Onshore wind turbines alone covered more than a quarter of the electricity demand in Germany in the first quarter of 2024. Hydropower plants also made an above-average contribution to electricity generation.

According to preliminary figures, gross power generated in Germany totalled around 137 billion kilowatt hours in the first quarter of 2024, around 8 percent lower than the previous year's figure of approximately 148 billion kilowatt hours. Solar, wind and other renewable energy sources generated around 76 billion kilowatt hours of that power (up 9 percent), with roughly 39 billion kilowatt hours coming from onshore wind power (up 4 percent) and some 10 billion kilowatt hours from photovoltaics (up 20 percent). In total, around 27 billion kilowatt hours (up 22 percent) of power were also generated from biomass, offshore wind turbines and hydropower plants.

Please note that there are two methods of determining the share of renewable energies. One of these is a pro rata calculation based on gross electricity consumption, which takes into account Germany's entire power grid. It is based on European requirements and complies with the German government's defined objectives for the expansion of renewable energies. The other is based on gross power generation and considers the total amount of electricity generated in Germany, including imported and exported volumes.

Expansion in Germany (onshore wind, solar)

According to an evaluation of data from the German Federal Network Agency's core energy market data register, the expansion of wind and solar energy in Germany continued to grow in the first quarter of 2024. Overall, the net addition of renewable energy installations rose to around 165 gigawatts, which corresponds to growth of around 3 percent compared to 31 December 2023. Most of this increase was driven by wind and solar.

A total of 191,687 new photovoltaic systems with a combined generation capacity of approximately 3,731 megawatts went into operation in Germany in the first three months of 2024. After deduction of the systems decommissioned during this period, the net increase in the total generation capacity amounts to roughly 3,718 megawatts (up 5 percent compared to 31 December 2023). The German government's (interim) expansion target by 13 gigawatts for 2024 as a whole (18 gigawatts for 2025 as a whole, 22 gigawatts p.a. from 2026 onwards) therefore appears achievable. As of 31 March 2024, the gross installed capacity in operation amounted to around 86 gigawatts. The German government has set an expansion target of 215 gigawatts by 2030.

The German onshore wind energy market also grew by a small margin in the first three months of 2024, albeit a lot less dynamically than the German solar market. A total of 159 new onshore wind turbines with a total generation capacity of around 718 megawatts went into operation. After deduction of the systems decommissioned during this period, the net increase in the total generation capacity amounts to roughly 576

Energiekontor AG ∙ Quarterly Statement Q1 2024

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megawatts (up 1 percent compared to 31 December 2023). The German government's annual expansion target by 10 gigawatts per year therefore appears to be very ambitious. As of 31 March 2024, the gross installed capacity in operation amounted to just under 62 gigawatts. The German government has set an expansion target of 115 gigawatts by 2030, which will require an average of around 7.6 gigawatts to be added per year from 2024 onwards.

Bidding rounds in Germany (onshore wind, solar)

Four bidding rounds were planned for onshore wind turbines in 2024, for the first day of February, May, August and November, respectively.

The tender volumes were set at approx. 2,486 megawatts for February 2024, approx. 2,795 megawatts for May 2024 and currently 2,500 megawatts for each of the remaining two tender rounds. The first round of tenders has already been completed. A total of 129 bids with a bid volume of around 1,795 megawatts were awarded in February 2024, meaning that the tender was significantly undersubscribed. The average volume-weighted award value amounted to 7.34 cents per kilowatt hour.

In the area of ground-mounted solar power, a total of three bidding rounds were planned for 2024, for the first day of March, July and December, respectively.

The tender volumes were set at around 2,231 megawatts for March 2024 and currently at 2,700 megawatts for each of the remaining two tender rounds. The first round of tenders has already been completed. A total of 326 bids with a bid volume of around 2,234 megawatts were awarded in March 2024, meaning that the tender was slightly oversubscribed. The average volume-weighted award value amounted to 5.11 cents per kilowatt hour.

Legal framework in Germany

The German government's coalition agreement from December 2021 provides for the expansion of renewable energies in the electricity sector to a share of at least 80 percent of gross electricity consumption by 2030. The aim is for the German economy to be greenhouse gas neutral by 2045. To achieve these goals, in 2022 the German government had already launched the largest energy policy legislative initiative in decades, known as the "Easter Package".

The reformed German Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG) came into force on 1 January 2023 and sets the central course for the further expansion of renewable energies. In addition to specific expansion targets, the EEG 2023 already includes the first measures to simplify approval procedures by anchoring in it the principle that the expansion of renewable energies is in the overriding public interest and serves public safety. This means EEG plants are given priority when weighing up the interests to be protected. The law also contains other specific expansion targets.

In the course of the 2023 financial year, further draft laws were passed or came into force in the above context. Please refer to the related comments and explanations in the Annual Report 2023 from page 49 onwards. The Annual Report 2023 is available for download on the website.

On 26 April 2024, the Bundestag passed the draft bill for a new raft of measures entitled Solar Package I, which is intended to accelerate the expansion of solar energy in Germany and reduce bureaucratic hurdles. Among other things, it should be possible to continue operating photovoltaic systems that no longer receive renewable energy subsidies without any expense. In this respect, the existing regulations, under which solar plants receive the market value of the electricity generated from the grid operator after subsidies end, will

Energiekontor AG ∙ Quarterly Statement Q1 2024

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Energiekontor AG published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 05:39:06 UTC.