MEGAKRÁN Kereskedelmi es Szolgáltató Nyilvánosan Muködo Reszvenytársaság : Semi annual report of EU SOLAR Plc.

About this update from Megakran Plc.

EU-SOLAR COMMERCIAL AND SERVICE PLC. SEMI-ANNUAL REPORT 2024 FIRST HALF TABLE OF CONTENTS Emission Statement 3 1. Our Business Strategy 4 1.1 Brief Presentation of Strategic and/or Advocacy Alliances Where the Issuer Holds Membership 8 2. Analysis by the Issuer's Management of the Company's Financial Position and Operating Results for the First Half of 2024 10 2.1. Presentation of significant factors significantly affecting the results from business activities 10 3. Company Details 13 4. Company Management and Organization 14 4.1 Board of Directors 14 4.2 Supervisory Board, Audit Committee 16 5. Impact of Macro Processes on the Industry, the Company's Target Group, and Business Operations 16 6. Organizational Staffing 16 7. Risk Factors and Risk Management 17 7.1. Risk Factors Affecting the Issuer 19 8. EU-SOLAR Nyrt. 2024 H1 Income statement 31 9. 9. EU-SOLAR Plc. 2024 H1 Balance sheet 32 10. ESG, Responsible Corporate Governance 34 FÉLÉVES JELENTÉS 2024 I. FÉLÉV EMISSION STATEMENT The undersigned, EU-SOLAR Commercial and Service Public Limited Company (registered office: 7630 Pécs, Koksz Street 127.; registering authority: Pécs Court of Registration; company registration number: 02-10-060424; represented by Petre András Balázs with independent signing authority, Chairman of the Board of Directors) as the Issuer (hereinaf- ter: the Issuer) - in accordance with the provisions of point 15.2 of the second book titled "Registration, Circulation, and Deletion Rules" of the "BÉT Xtend General Business Rules" hereby determines the content of the half-year report approved by the Issuer's Board of Directors for the first half of the 2024 business year. The Issuer declares that, based on the applicable accounting standards, the half-year financial report prepared to the best knowledge of the Issuer provides an accurate and reliable picture of the Issuer's assets, liabilities, financial position, as well as its profit and loss. Furthermore, the contents of the half-year business report provide a reliable picture of the Issuer's situation, development, and performance, outlining the main risks and uncertainties affecting the remaining 6 (six) months of the business year. The following half-year report includes the half-year financial statement and half-year business report, which have not been audited by an independent auditor. Pécs, September 30, 2024. EU-SOLAR Plc. Rep. András Balázs Petre Chairman of the Board of Directors 3 FÉLÉVES JELENTÉS 2024 I. FÉLÉV This report was prepared in accordance with Annex 6 of the Xtend General Business Rules prescribed by the Budapest Stock Exchange. The purpose of the document is to inform about the events, changes, and trends that occurred during the given half-year period. The report was prepared in accordance with the accounting principles defined in the 2000 Act C. on Accounting. REPORTING PERIOD January 1, 2024, to June 30, 2024. REPORTING CYCLE Since 2022, the Company publishes its half-yearly informational reports in accordance with the Xtend business rules prescribed by the Budapest Stock Exchange on a semi-annual reporting cycle. NATURE OF THE REPORT The report covers all functional areas and business sectors of EU-SOLAR Plc. 1. Our Business Strategy The strategic objective of the Issuer's management-considering the number of installed systems-is to achieve a 15% market share in the short to medium term. This represents a growth of over 50% in the Issuer's market share, taking into account the continuous expansion of the market. The ultimate strategic goal of the Issuer is to reach a 30% market share in the Hungarian residential solar panel market, as well as to achieve similar results in neighbouring countries such as Romania, Croatia, and Ukraine, where it began selling solar panel systems in 2023. In addition to the comprehensive implementation of solar panel systems, EU-SOLAR Plc. expanded its product range in 2023 with the introduction of a new product. The monoblock heat pump system offers an electrification solution for heating systems, providing an economical and environmentally friendly option. A key strategic pillar is the establishment and maintenance of professional engineering, electrical engineering, building services engineering, and service engineering specialties alongside internal IT development. Moreover, significant emphasis is also placed on the continuous development of support departments, the marketing team, and infrastructure. Our services include a service network that provides comprehensive servicing, maintenance, and repair services across the entire country for both existing and prospective customers. During our service network operations, the country is divided 4 FÉLÉVES JELENTÉS 2024 I. FÉLÉV into 25 regions, and the activities are carried out with the involvement of contracted partners. An electric vehicle fleet ensures the transport of specialists to locations. The activities include troubleshooting, repair, and planned preventive maintenance concerning solar panel systems, batteries, electric vehicle chargers, and heat pump systems. ORSZÁGOS SZERVIZHÁLÓZAT Until the spring of 2023, the customer service activities of EU-SOLAR Plc. were handled by an external partner company. However, today, the department operates entirely in-house with its own employees. The Back Office activities currently operate in the Company's two offices in Pécs, and plans for 2024 include setting up an office in Budapest during the second half of the year. The growth of the Issuer is driven by several factors that support the achievement of its goals. The primary factor stimulating growth is the increasing market demand. This growth in demand is facilitated by the yearly increase in awareness and acceptance of residential solar panel systems in Hungary, as well as consumers' growing interest in sustainability. Additionally, the availability of government subsidies for solar panel systems, sourced from European Union and Hungarian funds, has also spurred growth. In 2020 and 2021, the most significant support came from the Hungarian Development Bank's 0% interest loan program titled "Credit for Increasing Energy Efficiency and Renewable Energy Use in Residential Buildings" and a non-repayable state subsidy for home renovations available from the central budget. The aforementioned loan program by the Hungarian Development Bank is currently suspended, and no new subsidized loan applications can be submitted. The Issuer played a significant role in meeting the demand that arose from the "HET - Support for Residential Solar Systems and Electrification of Heating Systems Combined with Solar Systems" program in 2022-2023. In 2024, under 5 FÉLÉVES JELENTÉS 2024 I. FÉLÉV the newly launched "NPP" - Solar Energy Plus Program (Support for the Installation of Residential-Scale Power Plants with Storage), our Company contracted with more than 2,300 households holding support documents for the installation of residential-scale power plants. The Issuer has also expanded its market presence by entering new countries: it began active operations in Romania and Croatia in the spring of 2023, and in Ukraine in the last months of 2023. The Issuer's management believes that providing solar power installation services to small and medium-sized enterprises (SMEs) will offer numerous opportunities in the coming years. The rise in energy prices is generating a stronger demand for solar panels among non-regulatory price consumers (market participants). Furthermore, striving for compliance with ESG (Environmental, Social, and Governance) compliance is becoming increasingly important for companies. Both factors have a positive impact on the growth of demand. Additionally, the Issuer sees significant opportunities in the development of communication, data transmission, and data analysis systems that monitor the production of solar systems. As a part of a series of steps towards significant diversification of corporate activities aimed at reducing overall corporate risks, our corporate business division was organized as a separate business unit in May 2024. This division, a completely separate organizational unit, was specifically established to meet corporate needs. The division has set a goal to achieve a contract portfolio of 1.6 billion Hungarian Forints for 2024. Based on its expansion strategy, from June to October 2024, in addition to serving clients involved in the KAP (Competitiveness and Excellence Program) tender, the division began targeting other potential clients not involved in the tender. In reaching these clients, the division employs both direct and indirect marketing tools as well as a system of experiential recommendations based on personal relationships. For clients not involved in the tender and those experiencing funding shortages but operating successfully, the division, together with its strategic partner, also provides the option of installmentinstalment-based implementations. With this unique product - which, to our knowledge, is currently unique in the Hungarian market - the division aims to dynamically expand its client base. The division pays special attention to understanding unique customer needs, and for this reason, it exclusively employs senior Key Account Managers with significant industrial experience in its sales network. The division focuses on medium to large energy-demanding clients, consuming at least 70 MWh, where-as part of the strategy- it always prepares a customized, client-specific offer. 6 FÉLÉVES JELENTÉS 2024 I. FÉLÉV During the implementation of projects, the division operates with a dedicated, high- profile execution organization trained for large corporate environments to ensure the highest quality in the execution phase for its clients. The Issuer also sees potential in certain regulatory license-required activities (energy storage and service business, electric vehicle charging station network development). In some cases, the necessary licenses have already been obtained, while in others, the process is still ongoing. The Issuer holds the following licenses: Operation of electric vehicle charging equipment Electric vehicle charging Electricity trading Our other main product is the sale, design, and implementation of heat pumps, which began in the spring of 2023 at our companyCompany. The introduction of this new product involved thorough preparation by the sales teams, installers, and support groups. To facilitate this, our engineers provided several days of in-house training to impart the necessary professional knowledge for operating in these areas. In addition to the activities listed, the Issuer received the regulatory license for aggregator activities in August 2022, but it is currently not active in these operations. In the second half of 2021, the Issuer launched its solar power plant located on the outskirts of Siklós, within the framework of a balance circle contract signed with MAVIR. The solar power plant occupies 8,000 m^2 and is capable of producing 453 MWh of electricity annually. The creation of this small power plant aimed to reduce the Issuer's corporate-level carbon emissions, and it will also serve as a venue for educational activities in the future. The main body of EU-SOLAR Commercial and Service Public Limited Company (Registered office: 7630 Pécs, Koksz Street 127, Company Registration Number: 02-10- 060424) decided on June 28, 2024, under § 8 of the 2013 Act CLXXVI on the transfor- mation, merger, and division of legal entities, to transform the Company. As part of this transformation, the Company as the predecessor legal entity will cease to exist as of September 30, 2024, and its entire assets, rights, and obligations will be transferred to the newly formed Company, EU-SOLAR Commercial and Service SE Public Limited Eu- ropean Company (the official notification appeared in issues 28 and 29 of the Company Gazette on July 11 and July 18, 2024). 7 FÉLÉVES JELENTÉS 2024 I. FÉLÉV 1.1 Brief Presentation of Strategic and/or Advocacy Alliances Where the Issuer Holds Membership EU-SOLAR is a member of the following professional, industry-specific, or other strategic and advocacy alliances: DUIHK (Deutsch-Ungarische Industrie- und Handelskammer, German-Hungarian Chamber of Industry and Commerce) : The Chamber has around 900 member companies, including many internationally known large corporations, though the majority are small or typically medium-sized enterprises. The Chamber's members represent nearly all sectors of the economy. Membership is voluntary and is not limited to companies with German backgrounds. Hungarian Association of Logistics, Purchasing and Inventory Management : The Hungarian Association of Logistics, Purchasing and Inventory Management ("MLBKT") is a community of supply chain management professionals who create and operate efficient, sustainable, and ethical supply chains. Through its international connec- tions, MLBKT provides its members access to up-to-date professional solutions and principles. MLBKT is also a member of three additional international organizations: ELA / European Logistics Association IFPSM / International Federation of Purchasing and Supply Management ISIR / International Society for Inventory Research Engineering Chambers (Hungarian Chamber of Engineers, Budapest Chamber of Engineers, Baranya County Chamber of Engineers) : The various engineering Chambers act as advocacy bodies with the goal of creating the necessary professional, legal, regulatory, and intellectual background for the engineering work in their specific fields (sectors), and playing a coordination role in this creation. Additionally, as public bodies established by law, each Chamber also performs public duties: it evaluates, authorizes, and maintains a national registry of professional qualifications for its members and those registered with the Chamber, and participates in the develop- ment of technical regulations, standardization, and quality assurance systems. Chambers of Commerce and Industry (Hungarian Chamber of Commerce and Industry, Baranya County Chamber of Commerce and Industry) : The Chamber's goal, beyond the public body duties defined by the Chamber law, is to facilitate and ensure direct economic and social relations among civil organizations, entrepreneurs, and business entities through interest harmonization. The Chambers do not engage in direct political activities; their organization is independent of political parties and does not provide them with financial support. 8 FÉLÉVES JELENTÉS 2024 I. FÉLÉV In the recent period, EU-SOLAR Plc. has obtained the following awards and certifications BÉT ESG Certificate Business Superbrands 2023 Award 2024 Highly Trustworthy Company Certificate 2024 Family Friendly Place Magyar Brands Magyar Brands Workplace Award Excellent Business Brand Innovative Brand 2023 Award 2023 Award 2023 9 FÉLÉVES JELENTÉS 2024 I. FÉLÉV 2. Analysis by the Issuer's Management of the Company's Financial Position and Operating Results for the First Half of 2024 2.1. Presentation of significant factors significantly affecting the results from business activities Significant factors affecting the results of business activities include the development of net sales revenue and cost structure, as well as increases in personnel-related expenditures, etc. Table 1: Income statement Amounts in thousand HUF 2020 2021 2022 2023 2024 H1* Net sales revenues 6 176 248 10 087 787 13 624 717 14 630 171 1 656 468 Own performances 19 234 - - - - Other revenues 31 446 8 500 467 330 672 465 53 182 Material costs (388 409) (716 121) (6 348 630) (4 053 965) (479 070) Services used (853 162) (1 494 041) (2 633 245) (2 251 504) (672 312) Other services (31 036) (30 123) (93 595) (101 517) (36 413) Cost of goods sold (2 313 914) (3 578 805) (151 823) (3 546 237) (593 785) Remediated services (651 179) (1 082 359) (1 765 316) (1 665 027) (210 574) Material-type expenditures (4 237 702) (6 901 449) (10 992 609) (11 618 250) (1 992 154) Wages and salaries (330 245) (478 115) (604 403) (1 017 123) (420 558) Other personel type expenditures (8 120) (10 687) (34 488) (36 391) (15 966) Contributions (60 194) (81 614) (91 096) (125 686) (78 630) Personel type expenditures (398 559) (570 416) (729 987) (1 179 200) (515 154) Other expenditures (199 091) (734 793) (654 206) (832 158) (706 361) EBITDA 1 391 577 1 889 629 1 715 245 1 673 028 (1 504 019) Depreciation (61 566) (89 169) (150 578) (253 939) (104 008) EBIT 1 330 011 1 800 460 1 564 667 189 043 (1 608 027) Financial incomes 45 847 131 129 1 694 070 699 342 84 494 Financial expenditures (54 662) (147 971) (427 558) (1 653 553) (96 048) Financial result (8 815) (16 842) (1 232 678) (954 211) (11 554) Profit before taxes 1 321 196 1 783 618 2 797 345 464 878 (1 619 581) Corporate tax payable (2 143) (9 703) (3 303) (7 981) - Profit after taxes 1 319 053 1 773 915 2 794 042 456 897 (1 619 581) *Source: General ledger data of the Issuer, not audited 10 Attention : This is an excerpt of the original content. 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