ALTEO Energy Services Public : Half-yearly Report_2023_08_28

ALTEO NYRT.

INVESTOR PRESENTATION -

ALTEO Group

H1 2023

(non1-audited financial income)

H1 2023 NON-AUDITED FINANCIAL INCOME

This information was not compiled

on the basis of international accounting standard IAS 34 - Interim Financial Reporting; the information contained

in them are non-audited in terms of 2023 results and have not been audited by an independent auditor.

This presentation is for advance information purposes only.

2

THE MOST IMPORTANT EVENTS AND RESULTS OF 2023

• ALTEO achieved a remarkable result in the first half of 2023. The remarkable rise in profits confirms the success of the Company's strategy (presented at the end of 2019 and updated at the start of 2022) and its effective implementation, where environmental and social sustainability plays a key role in addition to business considerations.
• The energy market in the first half of 2023 was characterized by consolidating prices, which are still significantly above the levels seen before the price increase at the end of 2021. Possibly higher energy price stabilization have a positive impact on ALTEO's long-term strategy, highlighting that energy market opportunities starting in 2022 and continuing in 2023 are unlikely to persist in the long term; as a result of the consolidation of energy prices, the growth rate of profitability in EBITDA and Net Profit for the period on a year per year basis slowed significantly compared to the high levels seen in previous quarters. Thanks to its structure, its strategy based on sustainability and renewable energy production, its diversified portfolio and its outstanding team of professionals, ALTEO intends to continue to exploit the maximum of the opportunities offered by the market in the period ahead. ALTEO's current profitability significantly exceeds the upper band of the median EBITDA range presented at the beginning of 2022.
• CONSOLIDATED EBITDA REACHES HUF 12.8 BILLION, RISING BY 8% year-on-year,primarily on account of the remarkable profitability of the Virtual Power Plant controlling heat and electricity production, positively supported by record results in the Retail segment.
• CONSOLIDATED NET PROFIT WAS HUF 8.9 BILLION, SHOWING A 10% INCREASE over the same period last year.
• ALTEO's management considers the ramp-up of the Renewable Production Management business, launched at the end of 2020, to be highly successful. Today, this business is the clear market leader in terms of managed renewable power plant capacities in the domestic market, which now exceeds 1,700 MW.
• In the WASTE MANAGEMENT segment, which has undergone significant growth after the acquisition of FE-Group in 2022, the waste management concession, launched on 1 July, 2023, could represent significant opportunities. FE-Group Invest Zrt., 75.1% of which is owned by ALTEO, has signed a two-year contract with a two-year extension option with the concession holder, MOHU Zrt.
• ALTEO continues the active INVESTMENT ACTIVITY announced in its strategy. On 05.25.2023, the transaction for 100% of the share capital of Energikum Zrt. and 33% of the share capital of ECO-FIRST Kft. was concluded. Energikum holds the business quota representing 99% of the issued capital of Energigas Kft., which is the owner of the biogas plant in Nagykőrös, and ECO-FIRST trades in waste. In addition to the above, ALTEO is continuously working on further developing its Virtual Power Plant, including the enhancement of IT capabilities, as well as the development of energy storage and other energy production capacities.

3

THE MOST IMPORTANT EVENTS AND RESULTS OF 2023

• On March 23, 2023, the joint TRANSACTION of MOL RES Investments Zrt, Főnix Private Equity Fund and Riverland Private Equity Fund aimed at acquiring controlling interest WERE CONCLUDED.
• Two members of ALTEO Group and K&H Bank concluded the first loan transaction of ALTEO Group that is fully compliant with the so-called Taxonomy Regulation, which entered into force in 2022. Under the agreement, K&H PROVIDES A HUF 4 BILLION LOAN, which transaction complies with the EU Taxonomy, the most stringent set of sustainability rules of the European Union.
• The electrical boiler in Sopron commenced operation. The consortium of ALTEO and the Alfréd Rényi Institute of Mathematics was granted funds for the development of the system in the call for tenders announced by the Hungarian National Research, Development, and Innovation Office.
• In December 2022, the HUF 6 billion PARENT COMPANY LOAN from Wallis Asset Management was repaid in full on 16.03.2023.
• On 04.02.2023, the new members of the Board of Directors were elected at the Extraordinary General Meeting.
• On 04.21.2023, the General Meeting adopted ALTEO's 2022 annual report.
• On 04.28.2023, ALTEO's Board of Directors adopted a decision to introduce a new long-termshare-based incentive for senior and middle managers as well as for key talents and specialists.
• On 05.17.2023, a framework agreement was signed with MOL Nyrt. to provide industrial and power plant rotary machine maintenance services for Alteo, MOL, and its domestic and foreign subsidiaries (in particular Slovnaft or INA), thus exploiting the synergies of the cooperation between the two companies.
• On 05.25.2023, the transaction for 100% of the share capital of Energikum Zrt. and 33% of the share capital of ECO-FIRST Kft. was concluded.
• The Edelyn Solar Kft. solar power plant development project reached ready-to-build status in May 2023. On 07.06.2023, following approval by the Board of Directors, the investment of more than EUR 17 million will commence. ALTEO's solar portfolio will double with this investment.
• On 06.23.2023, SCOPE Ratings GmbH upgraded ALTEO as an issuer from "BB+" to "BBB-". The credit rating agency has left the bonds' previous rating of "BBB-" unchanged.

4

THE MOST IMPORTANT EVENTS AND RESULTS OF 2023

• On 06.29.2023, Fe-Group Invest Zrt., a subsidiary of ALTEO Nyrt., concluded a two-year contract (with the possibility of extension for another two years) with MOHU MOL Hulladékgazdálkodási Zrt. for the collection, transport, storage, and pre-treatment of waste.

Events after the closing of the statement of financial position:

• On 07.03.2023, the result of the ESG rating review was published, in which the company received a more favorable ESG rating than the risk level of last year.
• On 07.06.2023, ALTEO's Board of Directors approved the plans for the construction of Edelyn Solar, which will double the company's own solar power plant portfolio from its current nominal capacity of approximately 20 MW to 40 MW.