Market announcement

Title

Enefit Green unaudited financial results for Q4 and 12 months 2021

Message

In  Q4 2021, Enefit Green group total  revenues increased by 57% y-o-y to EUR68.9m
and  EBITDA was up by 77% y-o-y at  EUR49.6m. During the quarter, the group earned
net profit of EUR39.4m, which is 142% more than in fourth quarter of 2020.

For the full year 2021, Enefit Green group total revenues increased by 13% y-o-y
to  EUR183.7m and EBITDA was  up by 10% y-o-y at  EUR121.5m, net profit increased to
EUR79.7m or by 17% compared to the year before. Earnings per share (based on post-
IPO number of shares) for the full year was EUR0.30 (2020: EUR0.26).

Aavo Kärmas, Chairman of the management Board of Enefit Green comments:

"The  year 2021 proved that people's faith  in green transition is well grounded
and  gave a powerful signal that we quickly and strongly need to increase carbon
neutral power generation capacities. There is a demand for more renewable energy
in both Estonia and Europe. Wind and solar are the cheapest and most sustainable
energy sources and the technologies and solutions for large-scale wind and solar
power production are available.

Enefit Green's financial results in 2021 were very strong. The year started on a
slightly  weaker note  due to  hard comparison  with one  of the  windiest first
quarters  in recent memory  which had allowed  us to achieve  record wind energy
production volume in 1Q20. As wind conditions were weak in 1Q21, our wind energy
production suffered, but as the year progressed, wind conditions improved and so
did  our results.  Second half  production volumes  were very good and financial
results  were also supported by strong electricity prices. I am very happy about
record electricity and heat production results of our Iru facility and about the
tremendous  work of our  digitalisation focused asset  management team which has
enabled us to keep availability of our production units at a very high level.

During  the year we made good progress with our near term development pipeline -
we  approved final investment decisions  on two wind farms  in Lithuania, on one
wind  farm in  Finland and  on one  solar park  in Poland. These projects have a
combined  installed capacity  of ca  199 MW and  will be  a good addition to our
current  457 MW  installed  electricity  production  capacity. This year we have
about  twice the amount of  investment decisions before us  to complete our 600-
plus MW investment program.

During  our highly successful IPO  in October we promised  not only to invest in
new  capacities to grow the production volumes  in the future, but also to treat
our  shareholders fairly and distribute  half of the profits  of Enefit Green as
dividends.  The management board in coordination  with the supervisory board are
thus proposing to pay out EUR39.9 million or EUR0.151 per share."



Webinar to present the results of 2021

Today,  February  28, 2022 at  11.30 EET  Enefit  Green  will  host a webinar in
English  to present and discuss its  2021 results. To participate, please follow
this link  (https://worksup.com/app#id=EGR2802) (if  asked, please  use event id
EGR2802).



Significant events during 2021

  * Investment decision to build a 43 MW wind farm in Shilale (Lithuania)
  * Investment decision to build a 75 MW wind farm in Akmene (Lithuania)
  * Investment decision to build a 72 MW wind farm in Tolpanvaara (Finland)
  * Investment decision to build a 9 MW solar farm in Zambrow (Poland)
  * New loan agreements with SEB and OP Bank
  * Successful IPO raising 100m EUR to finance investments (+75m EUR worth
    existing shares sold by Eesti Energia)



Key figures

                          Q4 2021 Q4 2020 Change %   12m 2021 12m 2020 Change %

 PRODUCTION VOLUMES

     Electricity, GWh         385     366       5%      1,193    1,350     -12%

     Heat, GWh                174     169       3%        618      544      14%

     Pellets, t                38      43     -12%        135      162     -16%



 TOTAL REVENUES, mEUR          68.9    44.0      57%      183.7    162.7      13%

     Sales revenue, mEUR       59.3    36.0      65%      153.0    114.0      34%

     Renewable energy
 support and other
 income, mEUR                   9.6     8.0      20%       30.7     48.7     -37%

 EBITDA, mEUR                  49.6    27.9      77%      121.5    110.2      10%

 NET PROFIT, mEUR              39.4    16.3     142%       79.7     67.9      17%

 EPS, EUR (post-IPO number
 of shares)                  0.15    0.06     142%       0.30     0.26      17%



Sales revenues and other operating income

The group's electricity production in 2021 was 1,193 GWh (158 GWh lower than in
2020). The group's average implied captured electricity price for the period was
EUR107/MWh (2020: EUR75/MWh).

The key revenue driver was a surge in the electricity price in the Estonia price
area of the Nord Pool power exchange (NP Estonia), which increased the group's
sales revenue by around EUR38.9m. The average market price in NP Estonia in 2021
was EUR86.7/MWh compared with EUR33.7/MWh in 2020. The average implied sales price
of the group's production units that are exposed to the NP Estonia electricity
price was EUR82.7/MWh in 2021 and EUR29.2/MWh in 2020.

Another major factor that influenced the group's sales revenue was pellet sales,
which grew by EUR6.2m. While pellet production declined by 26k tonnes, pellet
sales grew by 54k tonnes year on year on the back of reduced inventory level.

Heat production grew by 14% compared with a year earlier but average sales price
dropped  by 30%, because  on the  one hand  the new  contract with  the district
heating  provider Utilitas Tallinn enabled the group to sell heat year-round but
on  the other the heat price cap  approved by the Estonian Competition Authority
was  lower. The combined effect of the two factors lowered heat sales revenue by
EUR1.3m.  For  further  information,  see  the  cogeneration  section  in  segment
reporting.

The  decrease in  other operating  income for  2021 is attributable to a one-off
sale  of greenhouse gas emission allowances  in the comparative period (EUR13.7m).
Also,  the renewable  energy support  received by  the group  decreased by EUR3.7m
because the eligibility period of the earliest completed part of the Aulepa wind
farm  (39 MW) expired in July  2021, the electricity production of Estonian wind
farms  dropped by  13% and the  market price  of electricity generated by Polish
solar farms was higher, which lowered the amount of support received.



EBITDA and segmental breakdown

EBITDA  was  positively  influenced  by  the  electricity  price in the Estonian
production  units (effect: EUR38.9m), growth in pellet sales revenue (EUR6.2m) and a
decrease  in variable expenses  (EUR3.2m). The strongest  negative impact resulted
from  other income because in 2020 the group earned one-off income from the sale
of  emission  allowances  (EUR13.7m).  Other  notable  drivers were: pellet stocks
changed  (negative  impact:  EUR8.4m),  both  Estonian  and  Lithuanian wind farms
suffered  from lower  wind speeds  and thus  produced less electricity (combined
negative  impact: EUR7.9m),  renewable energy  support decreased (negative impact:
EUR3.7m).

Based on total revenues and EBITDA for the reporting period, the group's largest
segment  is  the  Wind   energy  segment  (with 59% of total revenues and 74% of
EBITDA).  The Cogeneration segment contributed  38% to total revenues and 29% to
EBITDA.  The smallest reportable  segment was Solar  energy, which accounted for
3% of the group's total revenues and 1% of the group's EBITDA.



Net profit

The  group's net profit increased  by EUR11.8m to EUR79.7m.  Growth was supported by
high  electricity prices in the  second half of the  year, cont­rol of growth in
fixed   costs   and   digitalised  asset  management  which  helped  secure  the
availability of production assets and stability in production operations.



Capital Expenditure

The  group's capital expenditures  in 2021 totalled EUR76.5m,  EUR62.7m up on 2020.
Growth  resulted from development expenditures, which amounted to EUR72.2m. Out of
the  latter, EUR70.0m  was related  to wind  farm developments in the construction
phase  or scheduled to reach the construction phase in 2022: the group purchased
from Eesti Energia's subsidiary Tootsi Windpark plots for the development of the
Sopi  wind farm for EUR29.4m and invested EUR19.3m in the Shilale II wind farm, EUR8.3m
in  the wind turbines of the Akmene wind farm, EUR6.6m in the Purtse wind farm and
EUR7.1m  in the Tolpanvaara wind farm which received an investment decision at the
end of 2021.

Expenditure  on the  improvement and  maintenance of  existing assets  was EUR4.3m
compared  with EUR2.9m in 2020 and  was mainly related to  the improvements of the
Estonian wind farms (EUR2.0m) and cogeneration facilities.



Capital Structure

At the end of 2021 Enefit Green's total invested capital of EUR676.6m (2020:
EUR698.1m) consisted of EUR633.6m of equity (2020: EUR509.6m) and EUR43.0m (2020:
EUR188.6m) of net debt (outstanding debt less cash and equivalents). The ratio of
net debt to total invested capital or financial leverage was thus unusually low
(6% vs 27% at the end of 2020) due to the IPO proceeds from Q4 2021
and reshaping of the loan portfolio in connection with the launch of new
development projects and the addition of new financing partners. At the end of
2021, the group's undrawn credit facilities totaled EUR140m. The average interest
rate of bank loans drawn down at the end of 2021 was 1.17% (2020: 1.66%). Enefit
Green's capital structure is thus very well prepared for continuing the EUR600m
investment program.



Dividend proposal

In coordination with the Supervisory Board, the Management Board proposes to
distribute to shareholders EUR 39.9 million in dividends (0.151 euros per share)
from earnings of previous periods in 2022, which is equivalent to 50% of group's
unaudited net profit in 2021.



Condensed consolidated interim income statement

 in thousand euros                           Q4 2021  Q4 2020     2021     2020

 Revenue                                      59,346   35,979  153,002  113,994

 Renewable energy support and other income     9,562    7,990   30,705   48,689

 Change in inventories of finished goods
 and work-in-progress                        (1,468)    1,057  (3,708)    4,674

 Raw materials, consumables and services
 used                                       (13,854) (13,446) (44,037) (43,820)

 Payroll expenses                            (1,781)  (1,625)  (6,713)  (6,071)

 Depreciation, amortisation and impairment   (9,553)  (9,260) (38,145) (38,192)

 Other operating expenses                    (2,236)  (2,014)  (7,791)  (7,297)



 OPERATING PROFIT                             40,016   18,681   83,312   71,979

 Finance income                                  503        4      721      203

 Finance costs                                 (669)    (795)  (2,833)  (3,580)

 Net finance costs                             (166)    (791)  (2,112)  (3,377)



 Profit (loss) from associates under the
 equity method                                    36       20       46        5



 PROFIT BEFORE TAX                            39,886   17,910   81,246   68,607

 Corporate Income Tax Expense                  (516)  (1,639)  (1,584)    (737)



 PROFIT FOR THE PERIOD                        39,370   16,271   79,661   67,870



Condensed consolidated interim statement of financial position

 in thousand euros                                   31 Dec 2021    31 Dec 2020

 ASSETS

 Non-current assets

 Property, plant and equipment                           612,503        594,980

 Intangible assets                                        68,239         67,839

 Right-of-use assets                                       2,750          2,222

 Prepayments                                              20,710              -

 Deferred tax assets                                         442            344

 Investments in associates                                   578            532

 Long-term receivables                                        78            103

 Total non-current assets                                705,300        666,020



 Current assets

 Inventories                                               9,529         11,085

 Trade and other receivables and prepayments
                                                          23,347         51,566

 Cash and cash equivalents                                80,454         10,774

 Total current assets                                    113,330         73,425

 Total assets                                            818,629        739,445



 in thousand euros                                      31 Dec 2021 31 Dec 2020

 EQUITY

 Equity and reserves attributable to equity holder of
 the parent

 Share capital                                              264,276       4,794

 Share premium                                               60,351          -

 Statutory reserve capital                                      479         479

 Other reserves                                             150,828     399,165

 Retained earnings                                          157,673     105,111

 Total equity                                               633,608     509,549



 LIABILITIES

 Non-current liabilities

 Borrowings                                                  93,884     161,558

 Goverment grants                                             7,458       8,020

 Derivative financial instruments                            23,207           -

 Deferred tax liabilities                                    12,568      12,555

 Other long-term liabilities                                  3,000          -

 Provisions                                                      13          13

 Total non-current liabilities                              140,130     182,146

 Current liabilities

 Borrowings                                                  29,572      37,778

 Trade and other payables                                    15,264       9,858

 Provisions                                                      56         114

 Total current liabilities                                   44,892      47,750

 Total liabilities                                          185,021     229,896

 Total equity and liabilities                               818,629     739,445



Further information:
Sven Kunsing
Head of Finance Communications
[email protected]
(https://www.globenewswire.com/Tracker?data=eahglFI0K4UUxwsmqXkQdO3N_ld1uojlGTE_
vteiKcyQu1wfu3r9tXxEfe64TI9iPjXXdLcA-1wKJKK402r4cwPqdjBXLG-Ga36PZFEEUJ4=)
https://enefitgreen.ee/en/investorile/
(https://www.globenewswire.com/Tracker?data=2hvtWZj2Sah7P5FHBmegLeIoMx1_pu7PK9v_
TsWBkf9HVGRVBco0gBWNAR8sTIf_RfHfPw1v74a_H6m3SjVkIBzGyIVVbjGOe57EOq9-
agKg8ttz2h5EHYmF0la-hs-rAYHvQm2Fvlu3QknP8tcDCA==)

Enefit Green is one of the leading diversified renewable energy producers in the
Baltic sea area. The Company owns 22 wind farms, 38 solar power plants, 4
cogeneration plants, a pellet plant and a hydroelectric plant located in
Estonia, Latvia, Lithuania and Poland. As of the end of 2021, the Group had a
total installed electricity production capacity of 457 MW and a total installed
heat production capacity of 81 MW. During 2021, the Company produced 1193 GWh of
electricity and 618 GWh of heat.