#19 ກ & STN EN 837 MPa הייוייד. A Investor Presentation Czech Gas Networks Investments S.à r.l. June 2023 Strictly Private and Confidential www.cgni.eu#2Disclaimer Important notice This presentation with all associated oral or written materials prepared or presented together (the Presentation) has been prepared by Czech Gas Networks Investments S.á r.l. (the Company) for information purposes only about the Company and its subsidiaries. While the information contained in the Presentation is believed to be accurate, the Company has not conducted any independent investigation with respect to, or attempted to independently verify, any such information. 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Certain information in the Presentation may include various forward-looking statements that relate to, among other, events and trends that are subject to risk, uncertainties or other factors that could cause the actual business activities, results, performance, liquidity, financial position, prospects, strategies, initiatives and opportunities of the Company and its subsidiaries to differ materially from those expressed in, or implied by, these forward-looking statements. When used in the Presentation, the words "estimate", "project", "intend", "anticipate", "believe", "expect", "should" and similar expressions, as they relate to the Company, its subsidiaries and their management, are intended to identify such forward-looking statements. Recipients of this Presentation are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Presentation. These forward-looking statements reflect the Company's preliminary analysis of current expectations and projections about future results, performance, liquidity, financial condition, prospects, strategies, initiatives and opportunities and are based upon information currently available to the Company and their interpretation of what they believe to be significant factors affecting the Company, including assumptions regarding future events. The Company does not undertake any obligations to publicly release the results of any revisions to these forward-looking statements to reflect the events or circumstances after this Presentation or to reflect the occurrence of any unanticipated events. Accordingly, no representation or warranty is given as to the achievement or reasonableness of any future projections, initiatives, strategies, management estimates or opinions, or potential prospects or returns. 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It is the responsibility of the recipient of the Presentation, or any part thereof, to ensure compliance with all applicable legal and regulatory requirements. 6 gasnet.cz 2#3Today's Presenters Thomas Merker Pavel Dočekal Jiří Steklý Chief Financial Officer of Czech Grid Holding Previously: CFO of innogy Czech 25 years of experience in energy sector Head of Regulatory, Legal & Internal audit in GasNet Previously: Head of Regulatory Affairs/innogy Czech 25 years of experience in energy sector Head of Finance and Controlling in GasNet With GasNet since September 2020 Previously: Head of Treasury in Pražská energetika 11 years of experience in energy sector 6 gasnet.cz 3#49 Agenda 1. Retrospection 2022 Legislative/Regulatory framework 2. Financial Results 2022 3. Gas Market Update 4. 5. ESG Update 9 6. Transition to Hydrogen 7. Strategic Goals Overview 8. Q&A 9. Appendix 2022 and 2023 at a glance | 2022 Consolidated Financial statements | Impact of R-U crisis | Financing | 2022 vs. 2023 regulatory parameters Macro environment | European and Czech gas market update | gas storage filling | Czech Government and Sector initiatives Response to the energy crisis in 2022 | Recent development | FF55 | RP6 ESG and NetZero 2040 Future of Gas | Transformation NG to hydrogen distributor 2030-2050 | Retrofit of Network gasnet.cz 4#5Although the overall environment in 2022 was very challenging, the last year was again a successful year for CGNI • Almost complete restructuring of deliveries from 97% Russian gas to Norwegian gas and LNG within 9 months. The shift in flow is structurally sustainable, and the country's largest utility also acquired a stake in an LNG terminal in the Netherlands in 2022 to secure up to one third of the country's annual consumption. Stable operation, no curtailments or technical shortages in gas supply Although distribution volumes decreased significantly due to price hikes and geopolitical uncertainty, financial and operating objectives were met Regulatory rules for ongoing RP5 prove resilience Strong engagement in the energy transition in the Czech Republic The dependance of the Czech Republic on Russian gas dropped to almost zero Other: 3% Other (LNG, Norway): 96 % Gas prices declined to pre-war levels after the all-time peak in Q3/2022 ICE Endex Dutch TTF Natural Gas Futures Gas storage filling levels increase to all time. highs in 2023. CONTRACT JUN23 Russia 4 % INTRADAY 3 MONTHS 1 YEAR 2 YEARS 350 300 Russia: 97 % 250 200 150 100 2023 50 g 2021 Source: MPO (Ministry of Industry and Trade) LAST CZE gas filling level at long-term high (May 2023) 80% TIME(GMT) % CHANGE VOLUME 70% 1.958 6840 60% 25.000 5/29/2023 3:59 PM LAST UPDATE TIME: 05-30-2023 5:14 AM GMT 50% 40% 30% 20% 10% MONDAY MAY 29, 2023 PRICE: 24.562 0% 2015 2016 2017 Igas filling level @ May 29 0 JUL 21 OCT 21 JAN 22 APR 221 JUL 22 OCT 22 JAN 23 APR 23 69% 34% 2018 2019 2020 2021 2022 2023 average (May 29, 2015-19) gas filling level * 2015-2021 data available only for RWE Gas Storage CZ, thus the comparison performed at the level of RWE Gas Storage CZ. gasnet.cz 5#6A resilient economy with below average but steadily growing indebtedness, an unemployment among the lowest in the EU, however with relatively high inflation and interest rates, rated Aa3 / AA- / AA- GDP / Head & GDP Real Growth, 2019-2023 Inflation Rate, 2019-2023 Avg. inflation rate of 7.2% vs. 4.1% in the EU(1) 15,1% 15,00% Avg. real growth of 0.7% vs 1.1% in the EU(1) Czech Macro Developments Robust medium-term growth dynamics and broad economic resilience in the midst of current geopolitical crisis 11,4% Record levels of employment 84.8% in the EU(1) Liquid and well capitalized banking system Central bank reacted to rising inflation figures by a sharp tightening of its monetary policy Significantly reduced reliance on Russian natural gas over 2022 Rating agencies have reaffirmed their views on the Czech economy Rating Agencies' Views MOODY'S "Czech Republic's credit profile is supported by its fundamental credit strengths ... competitive economy, a "1 Aa3 (Negative) strong institutional set-up, favourable fiscal metrics... Moody's, May 2023 10,00% 532 600 3,0% 509 4% 3,5% 2% 400 2,5% 7,2% 448 456 0% 5,00% 435 0,2% 2,8% 3,2% 3,8% 6,6% -2% 200 -4% 2,2% 1,3% -5,5% 0,9% 0 -6% 0,00% 2019A 2020A 2021A 2022A 2023E 2019A 2020A 2021A I Inflation (CPI, % p.a.) 2022A 2023E Interest Rate (% p.a.) I GDP per head ($ Intl. PPP) GDP Real Growth (% p.a.) Unemployment Rate, 2019-2023 Public Debt as % of GDP, 2019-2023 6.4% in the EU(1) 2,0% 2,6% 2,8% 2,4% 2,7% 46,7% 42,0% 44,1% 37,6% 30,0% S&P Global Ratings AA- (Stable) "I .... solid government and external balance sheets... improved energy security..." S&P Global Ratings, April 2023 2019A 2020A 2021A Unemployment Rate (%). 2022A 2023E 2019A 2020A 2021A 2022A Debt-to-GDP Ratio (%) 2023E 9 Source: Rating Agency reports, EIU. Note: (1) EU considers EU-27 as of 2020. ...underpinned by a record of credible macroeconomic Fitch Ratings and monetary policies, a robust institutional framework, AA- (Negative) and strong external finances..." Fitch Ratings, March 2023 gasnet.cz 6#7Key events 2022 and 2023 January 2022 saving of 130 FTES April 2022 Preventive crisis measures adopted & reactive measures prepared October 2022 BBB+ rating affirmed Fitch Ratings BBB+ November 2022 ESG rating improved SUSTAINALYTICS 17.8 Low Risk Net Zero targets defined January 2023 Warm winter & savings lead to EU gas storage > 80%, gas prices decrease to pre- war levels 6 April 2023 RP6 negotiations started September 2023 Distribution tariffs 2024 (Alignment process ERO/GN) March 2023 BBB+ rating affirmed May 2023 January 2024 Audited consolidated Reduction of ca. 70 Financial statements FTE approved and February 2022 Beginning of Russia vs. Ukraine war August 2022 Unprecedent prices of power and gas in Europe, calls for price regulation. Czech Energy Act amended October 2022 EU gas-storage filling level reaches 95% (target = 80%) December 2022 Official tariff announcement, increased cost of network losses to be covered by Czech state S&P Global Ratings BBB+ published gasnet.cz 7#89 Agenda 1. Retrospection 2022 Legislative/Regulatory framework 2. Financial Results 2022 3. Gas Market Update 4. 5. ESG Update 9 6. Transition to Hydrogen 7. Strategic Goals Overview 8. Q&A 9. Appendix 2022 and 2023 at a glance | 2022 Consolidated Financial statements | Impact of R-U crisis | Financing | 2022 vs. 2023 regulatory parameters Macro environment | European and Czech gas market update | gas storage filling | Czech Government and Sector initiatives Response to the energy crisis in 2022 | Recent development | FF55 | RP6 ESG and NetZero 2040 Future of Gas | Transformation NG to hydrogen distributor 2030-2050 | Retrofit of Network gasnet.cz 8#92. Strong financial performance in 2022 despite general downturn in the gas market EBITDA CZK mn 10 500 10 000 9 500 6 9.000 8 500 10 184 8 000 7 500 7 000 2021 EBITDA -9.9% EBITDA Normalized EBITDA CZK mn Normalized EBITDA 10 500 10 000 9 500 9 425 9 000 +8.2% 8 500 8 713 9 177 8 000 7 500 VS. 7 000 2022 2021 Claimed k-factor adj. Separation costs adj. Normalized EBITDA 2022 EBITDA Generated K-factor adj. Clearing adj. gasnet.cz 9#102 Strong financial performance in 2022 despite general downturn in the gas market, CAPEX cash-flows delayed as one of the preventive measures applied by the company in 2022 Distribution Volume* GWh Distribution margin CZK mn 80 550 2021 -19.8% 64 640 * More information regarding decrease in distribution volume on the next slide. 6 CAPEX (additions) CZK mn 4 647 2022 -1.7% 4 566 2021 2022 13 543 -10.0% 12 194 2021 2022 CAPEX CF CZK mn 4 531 -16.5% VS. 2021 3 784 2022 gasnet.cz 10 10#11g 2 Distribution volume dropped in 2022 mainly as a result of warm weather and the energy crisis. Volume risk in 2023 mitigated via reduction in allowed volume. 50 000 45 000 B2B distribution volume 5 063 2 276 B2C distribution volume 32 000 31 000 6 011 30 000 2 417 29 000 1 957 48 056 28 000 31 070 1 824 35.000 42 173 27 000 39 598 37 670 30 000 40 000 2 390 25 000 ACT 2020 ACT 2021 BG 2022 ACT 2022 26.000 25 000 BG 2022 26 970 ACT 2022 2022 B2B: Decrease driven mainly by temporary shutdown of Sokolovská Uhelná powerplant, warm weather in Q1 and Q4/2022 and energy crisis B2C: Decrease of B2C segment mainly caused by warm weather in Q1 and Q4/2022 and energy crisis. Drop in distribution volume in both segments due to energy crisis was in 2022 ca.6% ■Distribution volume Warm weather Energy crisis Sokolovská Uhelná 80 550 Distribution volume (GWh) 64 640 62 200 ACT 2021 ACT 2022 Allowed volume 2023 ■Distribution volume ■Sokolovská Uhelná Energy crisis Warm weather 2023 Volume risk in 2023 mitigated via reduction in allowed volume that was used for calculation of distribution tariffs. Therefore, the achievability of allowed revenues does not seem to be at risk. (disruption in gas flows not assumed) Actual distribution volume in 2023 in line with allowed volume so far. gasnet.cz 11#129 2 2022 CGNI Consolidated Statement of Profit or Loss and Other Comprehensive Income with EBITDA ca. CZK 9.2 bn and the Loss for the period ca. 2.7 bn. caused mainly by revaluation of derivatives (non-cash item) In millions of CZK Revenue Other income Work performed by the Group and capitalised Net impairment reversals on financial assets Raw materials and consumables used Employee benefits expense Depreciation and amortisation Services Other operating expenses Operating profit Finance income Finance costs 2022 2021 • 13 981 15 069 106 102 465 456 -24 -3 -337 -220 -2 085 -2 152 -6 887 -7 173 -2 666 -263 -2 373 -695 2 290 3 011 1 361 -6 260 3486 -1 725 -106 -255 • • • • Consolidated revenues of the Group approximately CZK 14 bn in 2022. YoY decrease due to cold winter 2021 vs. warm winter 2022 and European energy crisis, both leading to YoY decrease in distribution volume from approx. 80TWh in 2021 to approx. 64.6 TWh in 2022. Decrease in personnel costs by CZK 67 million driven by YoY reduction in employees by approx. 130 at the beginning of 2022. The Group employed 2,286 employees at 2022 YE (2,401 at 2021 YE). Increase in costs of raw materials, energies and services by ca CZK 410 million is associated mainly with increase in fees payable to transmission system operator (Net4Gas). The EBITDA of the company amounted to exceptional CZK 9,177 million for the year 2022. Loss for the period in the amount of CZK -2,715 million was (on contrary with the previous year) negatively affected by mark-to-market revaluation of derivatives (non-cash item), as the company has not adopted hedge accounting. In case of derivatives the negative impact of mark-to-market revaluation of cross-currency swaps (CCS) significantly outperformed negative mark-to-market revaluation of interest rate swaps (IRS). Profit/(loss) before income tax -2 609 4 772 Income tax expense Profit/(loss) for the period -2 715 4 517 ■ IRS Other comprehensive income for the period TOTAL COMPREHENSIVE PRIFIT / (LOSS) FOR THE PERIOD -2 715 4 517 • ▪ CCS CZK 4,390 million (CZK 8,516 million) In case of borrowings denominated in EUR, the unrealized FX gain amounted to CZK 1,190 million. gasnet.cz#132 CGNI Consolidated Statement of Financial Position as of December 31, 2022 with Total Assets around CZK 116 bn. In millions of CZK ASSETS Non-current assets Property, plant and equipment Right-of-use assets Intangible assets Derivative financial assets Other non-current assets Total non-current assets Current assets Inventories Trade and other receivables Income tax prepayment Other taxes receivable Cash and cash equivalents Derivative financial assets Total current assets TOTAL ASSETS 6 31 December 31 December 2022 2021 99 450 3 151 818 4 962 102 195 3 046 In millions of CZK EQUITY Share capital Share premium Accumulated deficit 31 December 31 December 2022 2021 826 4622 Total equity • 1 1 26 173 -9 382 27 219 -6.667 16 792 20 553 LIABILITIES 1 1 Non-current liabilities 108 382 110 690 Borrowings 68 554 69 204 Lease liabilities 2 037 1 983 Deferred income tax liabilities 14 133 14 729 6 585 5 Provisions 56 52 616 Other non-current liabilities 320 339 8 Derivative financial liabilities 7 179 3533 1 Total non-current liabilities 92 279 89 840 4 040 1 376 2888 795 7 528 2 792 Current liabilities 115 910 113 482 Borrowings Lease liabilities • CGNI non-current assets worth over CZK 108 bn. Derivative financial assets and liabilities arose as a result of fair value changes of financial derivatives Borrowings of the company. consists of both senior unsecured notes and bank financing as well as of subordinated shareholder loans (ca. CZK 14bn) Significant balance of deferred income tax liabilities relates mainly to the difference between accounting and tax value of non-current assets • Increase in accumulated deficit as a result of PY loss caused mainly by net loss on trading derivatives. 595 343 235 190 Trade and other payables 2 261 1911 Contract liabilities 745 200 Current income tax payable 43 70 Other taxes payable 168 180 Provisions 77 168 Derivative financial liabilities 2715 27 Total current liabilities 6 839 3 089 Total liabilities 99 118 92 929 TOTAL LIABILITIES AND EQUITY 115 910 113 482 gasnet.cz#142 Debt structure remained unchanged compared to 2021, net debt decreases with respect to shareholders' decision to temporarily suspend dividends. KPIs @ Dec 31, 2022 Debt structure CZK bn 60 6 50 • = Net debt* CZK 53.1bn (CZK 55.4bn @ Dec 31, 2021) • Net debt/ RAB = 88% • Net debt/EBITDA = 5.78x • FFO net leverage = 6.25x No financial covenants unless being downgraded to SubIG** FX hedging ratio 40 30 • Subordinated shareholder loans maturing in 2044 amounted to ca. 14 bn CZK as of December 31, 2022. * CZK 55.4bn including leasing liability ** The covenants imposed by banks require the Company to be assigned the credit rating corresponding the investment grade. If the rating would be below the investment one and the amount of net debt is less than RAB the Group shall repay its bank borrowings immediately. Maturity profile 99% * As of May.2023 IR hedging ratio 20 10 0 Acquisition bank loans EUR Senior 1.000% notes New bank loans - LT facility 2022 ■CZK Senior floating rate notes EUR Senior 0.875% notes EUR Senior green 0.450% notes 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 As of December 31, 2022, outstanding, not used Capex and RC commitments amounted to CZK 0.5bn resp. CZK 0.5bn 84% *As of 31.12.2022 gasnet.cz 14#152 Outlook 2023: Allowed revenues to decline by CZK 1.5 bn due to reimbursement of historic k-factor (one-off event) 6 MCZK Normalized Allowed Revenues: +4.8% 13 726 13 100 16 000 14 000 125 505 129 607 607 12 000 12 595 Allowed Revenues: -12.1% 4 422 10 000 4 338 8.000 6000 4 127 4 000 2 000 3 903 0 2022 4 334 4 234 2023 Allowed profit Allowed depreciation Allowed losses, techn. consumption and overflows Claimed k-factor Allowed OPEX Allowed leases -Allowed revenues 2 650 11 076 gasnet.cz#162 Outlook 2023 April 2023 May 2023 RP6 negotiations started 2024 Network losses agreed June 2023 2024 Inflation parameters August 2023 CAPEX plan and reg. draft parameters 2024 Sept. 2023 Nov. 2023 Alignment process Official 2024 tariff announcement ERO/CGNI Agreement with the regulator (ERO) on coverage of network losses for 2024: cost neutral OPEX inflation vs. Actual cost increases neutral to wide extent CAPEX & D&A plan not expected to change Whole negative k-factor (excess of actual revenues over allowed revenues) generated in the past (CZK 2,650m) to be returned to the system in 2023. No such negative one-off impact expected in 2024. Expected tariff increase in absolute terms relatively high, but lower than electricity RAB and NAV Reconciliation Schedule NAV (CZKm) 80 60 RP4 RAB/ NAV (%) RP5 100% 10 70 80% 100% 60 969 • 899 95% 60% 50 757 84% 40% 72% 699 70% 40 65% 67% 60% 62% 20% • 30 0% 6 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E Upward reconciliation of RAB to match the higher underlying net book value in motion until 2025, with non-binding Capex plans for period 2021-2025 and 2025-2030 gasnet.cz 16#179 Agenda 1. Retrospection 2022 2. Financial Results 2022 Legislative/Regulatory framework 3. Gas Market Update 4. 5. ESG Update 9 6. Transition to Hydrogen 7. Strategic Goals Overview 8. Q&A 9. Appendix 2022 and 2023 at a glance | 2022 Consolidated Financial statements | Impact of R-U crisis | Financing | 2022 vs. 2023 regulatory parameters Macro environment | European and Czech gas market update | gas storage filling | Czech Government and Sector initiatives Response to the energy crisis in 2022 | Recent development | FF55 | RP6 ESG and NetZero 2040 Future of Gas | Transformation NG to hydrogen distributor 2030-2050 | Retrofit of Network gasnet.cz 17#183 Supplies from Russia historically representing more than 40% of gas consumption in EU (cca 4,000 TWh/year) have been replaced almost fully by Norwegian gas and LNG imports. Gas Import Routes and Sources Q4/2021 Q4/2022 Gas Supplies to Europe 6 NORSKO SVÉDSKO D FINSKO NSKO SPOJE RALOV BELO POL NĚMECKO PANE PORTU SKO MAROKO RA TRACIE CRAKOUSKO RUM SKO Černé moře RECK Středozemní moře Source: European Gas Flow dashboard by ENTSOG TURECKO SYRIE IRÁK NORSKO ŠVÉDSKO FINSKO SPOJE RALOV BELO PO NĚMECKO PANE PORTLA SKO MAROKO GWh/d 4000 3000 2000 RAKOUSKO 1000 CIE RUM Černé moře RECKO Středozemní moře Source: European Gas Flow dashboard by ENTSOG питрить TURECKO 0 10 2021 12022 42022 7 2022 10 2022 12023 42023 SYRIE IRÁK Corridor East LNG North Sea Source: European Gas Flow dashboard by ENTSOG gasnet.cz#19& ກ 3 Czech Republic is securing a diversified gas supply and long-term access to LNG terminals. Ongoing activities LNG terminal development Description Partner Gas Qatar LNG • Oman LNG Poland Germany LNG Piped LNG Piped • • • Trade and technical cooperation agreement approved by the government in 2022 - LNG supply expected within the next decade Negotiations between ČEZ and Qatar Energy Czech trade foreign office opening in Doha planned Oman still in search for investors for a pipeline infrastructure, a liquefaction terminal and ships for transport to Europe Negotiations between the CZ government and Omani LNG company on investment potential in the local deposits and pipelines Renewal of the discussion between the CZ and PL government on the Stork II gas pipeline connecting Czech and Polish gas networks, which would enable access to Polish LNG terminals Negotiations between the CZ and GER government on capacity in the Lubmin LNG terminals - total capacity is expected to increase to up to 14.2bcm/year in 2024 Advantage through the existing infrastructure - the OPAL pipeline and transport to CZ via Gazela pipeline LNG import capacity in Europe 2022-2024 LNG terminals: Existing Netherlands Existing/expansion Under construction Czech Republic Czech utility ČEZ has booked -3bcm/year of LNG terminal capacity in Eemshaven [1] ENTSOG | ENTSOG gasnet.cz 19#203 Gas storage filling levels in Europe already achieved 68% vs. 47% last year. Gas Storage Filling Level @ May 29, 2023 Gas Storage Filling Level @ May 29, 2022 Country Gas in Storage TWh Full % Austria 73,01 75,46 Filling level ŠVÉDSKO Country Gas in Storage TWh Full % Filling level Austria 30,56 32,00 ŠVÉDSKO B Belgium 3,20 36,83 Belgium 4,77 62,68 Bulgaria 5,04 85,63 Bulgaria 1,30 22,39 Croatia 1,04 21,89 Croatia 3,87 81,05 FINSKO FINSKO Czech Republic 22,09 61,68 Torshavn NORSKO Czech Republic 30,93 69,83 Torshavn NORSKO Denmark 5,92 65,17 Denmark 7,57 76,90 Helsinky France 68,36 51,17 Oslo Helsinky Talin France 67,44 51,24 Germany 117,28 48,70 Germany 186,47 74,42 Stockholm ESTONSKO Hungary 37,84 54,29 Hungary 20,30 29,99 Italy 144,18 73,86 Severni moře Italy 95,58 49,41 LOTYŠSKO Latvia 8,78 36,45 Latvia 11,11 49,17 DANSKO Netherlands 97,11 68,17 SPOJENÉ KRÁLOVSTVÍ LITVA Kodaň Moskva Netherlands 55,36 39,83 SPOJENÉ KRÁLOVSTVÍ Vilno Poland 34,39 94,44 Poland 20,67 55,06 Douglas Douglas Dublin Dublin BĚLORUSKO Portugal 3,72 93,75 Berlin Portugal 3,30 92,44 IRSKO NIZOZEMSKO IRSKO NIZOZEMSKO Romania 10,32 31,47 Romania 19,40 57,28 POLSKO .Talin Stockholm ESTONSKO Severní moře LOTYŠSKO DANSKO Kodaň LITVA Vilno Moskva Berlin BELORUSKO POLSKO Slovakia 26,33 70,90 Londýn BELGIE NĚMECKO Kyjev Slovakia 13,99 38,81 Londýn B NĚMECKO Spain 32,03 93,94 Spain 23,32 66,16 Sweden 0,10 95,26 Ukraine 56,65 17,65 United Kingdom 5,09 51,85 St. Helier Paříž FRANCIE Lucemburk ČESKO Videň Lucemburk UKRAJINA SLOVENSKO Sweden 0,01 6,74 SLOVENSKO St. Helier Ukraine 54,52 16,83 MOLDAVIE MAĎARSKO Celkem 834,25 Biskajský Zalis Bern Lublan Zahieb RUMUNSKO United Kingdom 9,20 94,82 Paříž FRANCIE Videň Kyjev UKRAJINA MOLDAVIE MADARSKO Celkem 577,89 Biskajsky záliv Bern Lublan Záhřeb CHORVATSK RUMUNSKO .Bukurešť Sarajevo SRBSKO Bukurest Sarajevo SRBSKO =62 Andorra la Vella Gas Day (last update) EU % SPANELSKO Monaco-Ville TALIE Rím Tyrhenske moře Černé moře BULHARSKO Monaco-Ville TALIE Podgorica Skopje =6 Andorra la Vella Podgorica Tirana Ankara Gas Day (last update) EU 9 SPANELSKO Rim Tyrhénské moře BULHARSKO Skopje Tirana Černé moře Ankara ŘECKO TURECKO ŘECKO TURECKO PORTUGALSKO Jonské PORTUGALSKO Jonské 29. května 2023 68,37 Tunis 29. května 2023 68,37 more Atény Gibraltar Gibraltar Valletta Alžir Nikosie Alžir TUNISKO SÝRIE Tunis TUNISKO moře Atény Valletta Nikosie SÝRIE Rabat Rabat Středozemni moře Středozemni moře MAROKO Tripolis LIBANON Damašek JORDANSKO IZRAEL LIBANON MAROKO Tripolis Damašek JORDANSKO IZRAEL Microsoft Bing © 2023 TomTom, 2023 Microsoft Corporation Terms Kanira Filling level % 20% and less 40-60 % 60-80% 80-90% 90%+ Source: European Gas Flow dashboard by ENTSOG Microsoft Bing Filling level % 20% and less 20-40% 40-60% 60-80% 909+ Source: European Gas Flow dashboard by ENTSOG 2023 TomTom, 2023 Microsoft Corporation Terms Kanira 9 gasnet.cz#219 0 3 Storage filling level in CZ is the highest in the past 20 years. Gas supply is stable with positive outlook for the whole year 2023 and 2024. CZE gas filling level at long-term high (May 2023) Filling of gas storage (%) 20 mcm/day 60% 50% 40% 30% 20% 10% 0% 2015 2016 2017 2018 2019 Igas filling level @ May 29 110% 100% 90% 69% 80% 70% 60% 34% 50% 40% 30% 20% 10% 2023 0% 山林 2020 2021 2022 average (May 29, 2015-19) gas filling level * 2015-2021 data available only for RWE Gas Storage CZ, thus the comparison performed at the level of RWE Gas Storage CZ. mcm 35 Daily flows (netto) to the Czech Republic (excl. transfer) 29.05.2023 30 25 20 15 10 5 Daily flows (30-days sliding average) 16 110% 100% 90% 80% 70% 20 60% 50% 40% 30% 20% 10% 01.01.2023 13.01.2023 25.01.2023 06.02.2023 18.02.2023 02.03.2023 14.03.2023 26.03.2023 07.04.2023 19.04.2023 01.05.2023 13.05.2023 25.05.2023 Daily flows (netto) to the Czech Republic (excl. transfer) Daily flows (average) 0% 29.06.2023 29.07.2023 29.08.2023 29.09.2023 29.10.2023 -Basic consumption level 29.11.2023 29.12.2023 x 29.01.2024 29.02.2024 31.03.2024 30.04.2024 31.05.2024 Filling of gas storage (%) Consumption level 7 Consumption level 8 30.06.2024 31.07.2024 31.08.2024 30.09.2024 31.10.2024 30.11.2024 16 mcm/day -Consumption level 9 Consumption level 10 31.12.2024 31.01.2025 28.02.2025 31.03.2025 30.04.2025 31.05.2025 30.06.2025 29.05.2023 29.06.2023 29.07.2023 29.08.2023 29.09.2023 29.10.2023 29.11.2023 29.12.2023 29.01.2024 29.02.2024 31.03.2024 30.04.2024 31.05.2024 -Basic consumption level Consumption level 6 Consumption level 7 Consumption level 8 -Consumption level 9 Consumption level 10 30.06.2024 31.07.2024 31.08.2024 30.09.2024 31.10.2024 30.11.2024 31.12.2024 31.01.2025 28.02.2025 31.03.2025 30.04.2025 gasnet.cz 31.05.2025 30.06.2025#229 Agenda 1. Retrospection 2022 2. Financial Results 2022 3. Gas Market Update 4. Legislative/Regulatory framework 2022 and 2023 at a glance | 2022 Consolidated Financial statements | Impact of R-U crisis | Financing | 2022 vs. 2023 regulatory parameters Macro environment | European and Czech gas market update | gas storage filling | Czech Government and Sector initiatives Response to the energy crisis in 2022 | Recent development | FF55 | RP6 ESG and NetZero 2040 5. ESG Update 9 6. Transition to Hydrogen 7. Strategic Goals Overview 8. Q&A 9. Appendix Future of Gas | Transformation NG to hydrogen distributor 2030-2050 | Retrofit of Network gasnet.cz 22#234 The response to the energy crisis in 2022 6 REPowerEU actions proposed to phase out Russian fossil fuels go beyond plans presented in the FF55 Package CZ government executed several measures to mitigate impact of possible gas interruption ACCELERATE CLEAN ENERGY TRANSITION DIVERSIFY ENERGY REPowerEU PHASE OUT DEPENDENCY ON RUSSIAN FOSSIL FUELS SOURCES SMART INVESTMENT National and European plans: reforms and investments, faster permitting and innovation SAVE ENERGY • • Strategic reserves controlled by the CZ government Financial motivation for storage users to inject gas into gas storage in CZ in keep it under defined conditions Storage to be filled at least by 80% by November 1 Use it or lose it (,,UIOLI") implemented in the Energy Act • Caps on energy prices • State financial support to TSO/DSOs implemented in the Energy Act in case of gas interruption gasnet.cz 23#244 Regulatory/policy topics 2023: Energy policy documents to dominate the agenda in CZ 9 National Energy and Climate Plan (update) Natural Gas / Bio-methane / Hydrogen to contribute to climate-energy targets Q3 Energy policy documents State Energy Policy (update) Hydrogen Strategy (update) Natural Gas as a transition fuel, position of Bio-methane / Hydrogen in the energy mix Hydrogen Q4 Q4 National Action Plan for Clean Mobility (update) Natural Gas / Bio-methane / Hydrogen in transport - i.e LNG Q2 Connection of Fit For 55 (EU) Energy efficiency, EU ETS II, conditions for Hydrogen to contribute to climate energy targets Q3 Legislation Gas Package (EU) Unbundling of Hydrogen network operators Q2 Energy Act (CZ) Hydrogen Q2 Other topics RP6 (preparatory work) Hydrogen Pilot Projects Regulatory formula, conditions for Hydrogen related investments Q1-4 Hydrogen Q1-4 gasnet.cz 24#254 Regulatory/policy topics 2023: FF55 Package is being finalized in EU EU gas market: Unbundling rules and governance • . Vertical unbundling (for vertically integrated DSOs only): in the proposed form may lead to ownership unbundling for DSOs Horizontal unbundling: at least in terms of legal form • EU DSO association: Inclusion of gas DSOs into the association established already for electricity DSOs GHG emissions reduction: ETS 2 ETS 2: Carbon,,tax" in road transport and individual heating (2027) Green hydrogen definition ກ & Methane emissions Regulation ZEB definition in EPBD . Definition of green hydrogen (Delegated act to RED II), expected entry into force in July 2023 - Requirements for production of green H2 only from RES sources Unfavorable and uncompetitive conditions for CZ producers • LDAR: Increased frequency of leakage surveys regardless of the technical condition of the networks(for vertically integrated Repair requirements: leaks to be repaired regardless of their size Passing on costs to end users: increase in the regulated component of the gas price Standard for new private buildings as of 2030, for public ones already since 2027 . • 100% RES energy produced on-site, nearby or supplied by energy community; Residual energy supplied also by RES energy from grids or as waste heat from DHC Need to transform all buildings by 2050 to ZEB standard . gasnet.cz 25 25#264 Timeline of negotiations of the FF 55 and Gas Packages Presidency of the EU Council (6 months): 2022 07-12 Ꮛ Launch of trialogues on Gas Package 04/24: last EP's plenary session before elections => 05/2024 2023 01 02 03 04 05 06 07-12 2024 01-06 Concluded negotiations on: • • CO₂ for cars and vans EU ETS Directive/ EU ETS 2 *) • CBAM • Energy Efficiency Directive *) • RES Directive III *) AFIR Launch of trialogues on EPBD *) After formal final votes awaited publication in the Official Journal of EU Note: *) In case of EU Directives transposition to the Czech law will follow at least within the period of another 12 months (2024) Launch of trialogue on Methane Regulation 000 gasnet.cz#274 Regulatory framework proved its resilience in extraordinary market conditions. RP5 determinations provide a predictable and supportive regulatory regime with a comprehensive CAPEX plan and reasonable operating performance incentives. RAB Reconciliation and Capex Upward reconciliation of RAB to match the higher underlying net book value in motion until 2025 RAB reconciliation ensures smooth tariff development in the upcoming years Non-binding Capex plans for period 2021-2025 and 2025-2030 submitted to regulator by all DSOS RAB and NAV Reconciliation Schedule NAV (CZKbn) 75 70 65 60 RP4 RAB (CZKbn) RP5 100% 90% 100% 80% 96% 95% 70% 89% 60% 84% 50% 12% 40% 72% 69% 70% 30% 65% 67% 40 60% 62% 35 30 FR5445 50 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E Source: Company Information, ERO. Note: (1) Service-Level-Agreement (SLA) margins refer to the margin on services provided from GasNet Služby to GasNet. 20% 10% 90 0% Regulatory WACC RP5 WACC was set to 6.43% (pre-tax) Opex Opex under- / outperformance sharing at the level of GasNet set at 50% / 50% Opex level based on the average of 2017-2019 actuals Service Level Agreement (SLA) margins (1) at GasNet Služby retained Inflation Escalation index comprising of wage index and services index is used for valorization of allowed OPEX. Correction factors are escalated using Producer Price index (PPI) All indexes are being published by Czech statistical office. Risks of regulatory changes before 2026 Risk of regulatory changes affecting main principles of RP6 seems to be rather limited. Some marginal changes (i.e conditions to procure network losses) have been initiated by DSOS & ກ gasnet.cz 27#284 ERO has formally launched a project to prepare regulatory rules for RP6* Start of the project and set-up of working groups Analysis and preparation of materials for key changes in regulation methodology Publication of draft of regulatory methodology (31.8.2024) Public consultation process Regulatory methodology finalisation Regulatory methodology publication (28.2.2025) 6th RP * ERO and regulated subjects ERO only 2023 2024 2025 2026 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 The organization of the project is similar as the one regarding RP5. 28#299 Agenda 1. Retrospection 2022 Legislative/Regulatory framework 2. Financial Results 2022 3. Gas Market Update 4. 5. ESG Update 6. Transition to Hydrogen 7. Strategic Goals Overview 8. Q&A 9. Appendix 2022 and 2023 at a glance | 2022 Consolidated Financial statements | Impact of R-U crisis | Financing | 2022 vs. 2023 regulatory parameters Macro environment | European and Czech gas market update | gas storage filling | Czech Government and Sector initiatives Response to the energy crisis in 2022 | Recent development | FF55 | RP6 ESG and NetZero 2040 Future of Gas | Transformation NG to hydrogen distributor 2030-2050 | Retrofit of Network gasnet.cz 29#309 KEY RESULTS 5 Our ESG strategy is built on 4 pillars and is based on corporate values GasNet ESG Strategy FOCUS AREAS ESG PILLARS • • Q We believe in environmental sustainability and the future of gas E Environmental Methane emissions Energy consumption Air pollution, waste, biodiversity Future of Gas (green gas transition) We embody safety standards and health protection S Social Employee & contractor safety Process safety Public safety & network reliability Employee health Safety culture We care about our O people and the communities around us S Social Employee and community development Support for schools and education Diversity, equity & inclusion Employee feedback Updated ESG Rating from October 2022 positioned GasNet among leading companies with low ESG risk 10% less Scope 1+2 emissions vs. 2021 13% less energy consumed vs. 2021 • 15% less NOxemissions vs. 2021 45% waste recycling rate in 2022 • ~1.1 LTIF vs. target of 1.6 New Safety Management System creation to coordinate all safety activities Around 500 attendees of health days We conduct business in a responsible and considerate way G Governance Ethical conduct & internal documentation Risk management Cybersecurity & crisis mgt. Business model resilience Sustainable supply chain SUSTAINALYTICS 17.8 Low Risk Completion of the catalog of risks Modernization of the central security access and surveillance system • ~68,000h spent on employee's development p.a. • Update of the Code of Conduct · ~900 attendees of education webinars in 2021 • • Code of Conduct for suppliers IN 2022 • gasnet.cz 30#315 Our environmental sustainability journey is managed via 2 major programs - Green GasNet and Future of Gas - Green GasNet Workstreams Key achievements 6 1 Technological losses & fugitive leakages 2 Energy cons. & Air pollution in operations 3 Energy consumption in buildings 4 Car fleet 5 6 Resources Biodiversity • • Scope 1+2 emissions: less than 184ktCO2e, leading to 10% decrease compared to 2021 Energy consumption: 88GWh almost 13% less than in 2021 CO emissions: remained at the same level as 2021 of 2.8t due to a new CHP unit NOx emissions: 2.36t, resulting in approximately 15% decrease compared to 2021 Waste recycling rate: 45% of all waste was recycled, 9% increase from 2021 7 Future of Gas gasnet.cz 31#325 Committed Net Zero Target Overview 6 Short-Term Retention 2025 Mid-Term Reduction Committed Net Zero 2030 2040 Target: -% 206 435 tCO₂e Scope 1+2 Emissions Target 2025 - keep emissions at the same level as 2020 baseline Abatement measures cover 5 emission sources: Own technological gas losses Fugitive gas leakages Energy consumption in operations Energy consumption in buildings Car fleet fuel consumption Incremental2 CAPEX (KEUR): 0 Incremental Average annual OPEX (KEUR): 0 Target: 15%1 175 470 tCO₂e Scope 1+2 Emissions Target 2030-reduction of 15% compared to 2020 baseline Target depends on the following measures: Accelerated renewal rate of medium-pressure pipeline Satellite monitoring for leakage detection Installation of screw expanders and CHP units Incremental CAPEX (KEUR): 0 Incremental OPEX (KEUR): 27 860 (64 415)³ Target: 100%1 0 tCO₂e Scope 1, 2 & 3 Emissions Target 2040 - commitment to be Net Zero by 2040 Net Zero includes additional operational measures beyond the 15% reduction in 2030 with further abatements through the transition to green gases, with 2 major elements to be solved: Market availability of green gases in CZ Economic viability (cost) of green gases in CZ Incremental CAPEX (KEUR): TBD Incremental Average annual OPEX (KEUR): TBD 1 Target compared to 2020 baseline | Increment = on top of MTP (currently not included in MTP or included only in MTP placeholder) | 3 Additional OPEX for the implementation of satellite monitoring for leakage detection as Option 2 (see slide 12) gasnet.cz 32#339 Agenda 1. Retrospection 2022 2. Financial Results 2022 Legislative/Regulatory framework 3. Gas Market Update 4. 5. ESG Update 6. Transition to Hydrogen 7. Strategic Goals Overview 8. Q&A 9. Appendix 2022 and 2023 at a glance | 2022 Consolidated Financial statements | Impact of R-U crisis | Financing | 2022 vs. 2023 regulatory parameters Macro environment | European and Czech gas market update | gas storage filling | Czech Government and Sector initiatives Response to the energy crisis in 2022 | Recent development | FF55 | RP6 ESG and NetZero 2040 Future of Gas | Transformation NG to hydrogen distributor 2030-2050 | Retrofit of Network gasnet.cz 33#346 Characteristics of the Czech Republic's energy system and constraints of alternative technologies likely leading to gaseous fuels playing a significant role across all decarbonization scenarios While various technologies are expected to be required for decarbonization, gaseous fuels (clean hydrogen, biomethane or residual gas) in large part delivered via GasNet's DSO network are expected to play a significant role to decarbonize the Czech Republic due to: Higher suitability of gaseous fuels to cover winter peak heating demand compared to electric power, which requires real time matching of demand and supply and hence very high installed capacities of backup generation / power storage with otherwise low utilization New nuclear reactors (tender for part of the capacity currently ongoing) or small modular reactors not expected to deliver new nuclear capacity before 2036 also, after 2036 nuclear will only have limited ability to cover demand spikes (e.g., heating demand peaks on cold winter days) The country's comparatively unfavorable conditions for renewables with no offshore wind and relatively low onshore wind and solar capacity factors of 0.2 and 0.18, respectively 6 gasnet.cz 34#356 The replacement of all fossil energy sources by 2050 will result in considerable gaps of up to one-third of future energy demand. Primary Energy Sources 2022 50% Crude Oil Natural Gas 21% 18% Figures in TWh Nuclear 19% Coal 29% Biofuels 12% Wind, Solar, and Hydro 1% Emission profile Crude Oil 23% Reductions 327 Replacements 75 468 142 100 468 State Reduction in fossil fuels Replacement measures Energy Gap Savings Savings 126 468 40 10 29 31 80-140 341 8 ││ 12 10 85 46 341 80% Natural 2020 Coal Gas Crude oil Nat. Nuclear Biomethane Solar + gas + other RES wind Electricity Export Energy Primary Savings Gap energy Coal 55% 20% con- sumption 2040-50 building heat 468 Savings Savings Savings Savings Savings 2020 e-pass- industry industry power enger output efficiency gener- ation efficiency pumps cars reduction 6 Other 2% Crude Oil 23% gasnet.cz 35#366 Given the climate in CZ, the energy system needs to be able to handle heating demand peaks of up to 28GW on cold winter days 6 Total electricity demand (incl. heating) Total heating demand² Weekly peak heating demand and power consumption peak in the Czech Republic, in GW 30 25 20 5 15 10 Jun Jul Aug Sep Oct Nov Dec Jan 12 1. Feb Mar Apr May Calculated as maximum hourly peak of the week for heating demand and power consumption 2. Coldest winter in 20-year period in 2010; including individual residential, commercial, and district heating gasnet.cz 36#376 In the short to mid term, natural gas is expected to play a major role as transition fuel; GasNet's grid can take on a significant role when replacing other fossil fuels As a result, natural gas consumption is expected to remain high at approx. 100 TWh in 2030 (versus 99TWh in 2021) despite efficiency gains across all sectors. This is driven by: ☐ ☐ ◉ Residential: Individual gas heating is expected to remain a key pillar of heat supply with heat pumps primarily deployed in new dwellings or to replace higher emitting fuels (projected decrease of less than 0.2m connection points and around 5TWh natural gas consumption driven by efficiency gains due to refurbishment by 2030) Industry: Coal based heating processes are expected to be converted to run on natural gas and later shift to hydrogen, esp. in the steel and chemical sectors (volumes of around 30TWh in 2030 despite efficiency gains) Transport Lower carbon intensive fuels like BioLNG/CNG are expected to partly decarbonize heavy duty transport (around 2TWh vs. 1TWh gaseous fuel consumption in 2021 Power: In the short to medium term the level of gaseous fuels is expected to remain constant (around 13TWh of natural gas in 2030) the EU taxonomy recognizes new natural gas power plants built before 2030 as 'transitional energy source', if they are used to replace more emissions heavy fossil fuel s such as oil and coal District heating Coal fired CHPs (accounting for approx. 60% of residential heat delivered in district heating 2021) are expected to be replaced by natural gas CHPs by 2033 (increase of over 15 TWh natural gas consumption vs. 2021) 6 gasnet.cz 37#386 Extensive district heating network run on CHPs remains essential for heating in the future 6 Fuel type DSO grid 10-50 >50 Coal Natural gas GasNet Pražská plynárenska E.ON Number of citizens, in ths >2 2-10 District heating CHP plants with fossil fuels in 20211 Litvinow Jirkov Chomutov Lovocke Liberec Ceska Lipa and Labem Mlada Bolesla Janske Lazne Trutnov Nachod Melnik Dvur Kralover Hradec kralove Nymburk Kadan Zatec Chodov Kralupy n.V. Kanovy Vary Neratovice Kladno Plzen Praha Kolin Beroun Tynec and Sazavou Milevska Tabor Seamovo Usti Strakonice Plana and Luznic Ceske Budejovice Pardubice Chrudim Kmov Karvina Oriova Havirov Bohumin Ostrava Frydek-Mistek Olomouc Koprivnice Roznov r.R Napajedla Key takeaways Today's widespread district heating network based on CHPs remains major component of future heating strategy of Czech Republic Connection of new gas fueled CHP plants to DSO or TSO network is subject to economic assessment (esp. distance to current pipelines). Most gas fired CHPs (<1TWh) were connected to the DSO grid. gasnet.cz 38#392020 Gas consumption While ensuring natural gas supply in the short to medium term, GasNet is progressing to i ) increase share of biomethane, and (ii) to prepare the network to deliver hydrogen to industrial, commercial, and residential consumers in the long run. 2030 Biomethane Hydrogen Natural Gas Pan-European Hydrogen Backbone addresses hydrogen transport in existing infrastructure 2040 2050 Source: Guidehouse Today, our network is already able to carry up to 20 % of hydrogen blends GasNet's asset management strategy includes an upgrade of the network to prepare the grid for 100% hydrogen in the next 10 to 15 years to come Hydrogen readiness of individual parts of our distribution network ກ 6 Dublin Cork Manchester Bilbox Copenhagen Gdansk Hamburg Amsterdam London Berlin Cologne 100% Frankfurt Leipzig Progue Krakow Vienna Munich Lyon Bordeaux Milan Venice Lubljana Madrid A Valencia Barcelona Tarifa Almeria Marselle Rome* Bratislava Budapest Polermo Athens 20% gasnet.cz 39#406 Analyses show that the potential for hydrogen in the Czech Republic may reach 50-60 TWh per year between 2040 and 2050, which is 50-60% of the expected energy shortage (80-140 TWh). 2050 2050 Consumption segment TWh ths. tons Industry 20 595 Transport 10 307 Heat and power production 11 335 Households 12 372 Services 8 226 Hydrogen Consumption total 61 1835 6 Source: ENTSO-G a ENTSO-E TYNDP 2022, Global Ambition Scenario gasnet.cz 40#419 Agenda 1. Retrospection 2022 2. Financial Results 2022 Legislative/Regulatory framework 3. Gas Market Update 4. 5. ESG Update 6. Transition to Hydrogen 7. Strategic Goals Overview 8. Q&A 9. Appendix 2022 and 2023 at a glance | 2022 Consolidated Financial statements | Impact of R-U crisis | Financing | 2022 vs. 2023 regulatory parameters Macro environment | European and Czech gas market update | gas storage filling | Czech Government and Sector initiatives Response to the energy crisis in 2022 | Recent development | FF55 | RP6 ESG and NetZero 2040 Future of Gas | Transformation NG to hydrogen distributor 2030-2050 | Retrofit of Network gasnet.cz 41#427 Strategic framing 2022 - 25 2020 House in order Shape the future Efficiency, Future of Gas/Hydrogen ESG and WHS Geopolitical and Business Environment 2021 2022 2023 2024 2025 Separation Refinancing WHS rebound Optimization (-130 FTE) New Work Delivery | Optimization (-70 FTE) IT Transformation - organization & processes Asset Management 360 Key GasNet projects ESG engagement SUSTAINALYTICS 19.4 Low Risk Future of Gas I ESG Plan SUSTAINALYTICS 17.8 Low Risk ESG - Technology implementation Future of Gas II Asset Management H2 retrofit preparation H2 Lighthouse projects Connection of biomethane plants and establishment of market platform Connection of central heating plants/CHPS to the network LNG/BioLNG role-out Russian Ukraine War Preparation for RP 6 with stronger focus on ESG and H2 CAPEX New EU & Czech Legislative Framework, Update of Czech key strategic energy, climate and industry policies 42#439 Agenda 1. Retrospection 2022 2. Financial Results 2022 Legislative/Regulatory framework 3. Gas Market Update 4. 5. ESG Update 9 6. Transition to Hydrogen 7. Strategic Goals Overview 8. Q&A 2022 and 2023 at a glance | 2022 Consolidated Financial statements | Impact of R-U crisis | Financing | 2022 vs. 2023 regulatory parameters Macro environment | European and Czech gas market update | gas storage filling | Czech Government and Sector initiatives Response to the energy crisis in 2022 | Recent development | FF55 | RP6 ESG and NetZero 2040 Future of Gas | Transformation NG to hydrogen distributor 2030-2050 | Retrofit of Network 9. Appendix gasnet.cz 43#44Agenda 1. Retrospection 2022 2. Financial Results 2022 Legislative/Regulatory framework 3. Gas Market Update 4. 5. ESG Update 9 6. Transition to Hydrogen 7. Strategic Goals Overview 8. Q&A 9. Appendix 2022 and 2023 at a glance | 2022 Consolidated Financial statements | Impact of R-U crisis | Financing | 2022 vs. 2023 regulatory parameters Macro environment | European and Czech gas market update | gas storage filling | Czech Government and Sector initiatives Response to the energy crisis in 2022 | Recent development | FF55 | RP6 ESG and NetZero 2040 Future of Gas | Transformation NG to hydrogen distributor 2030-2050 | Retrofit of Network ရွာ & gasnet.cz 44#459 CGH's core business is the distribution of natural gas throughout the Czech Republic, a regulated business with 81% country coverage. CGH Snapshot ◆ Largest distribution operation (DSO) in the country by both grid length and number of connections First fully unbundled utility in the Czech Republic after the successful separation from innogy in 2020 • Standard European RAB-based regulation with 5-year regulatory periods (RP) with strong track-record of tariff stability. The 5th RP began in 2021 and ends in 2025 Strategically positioned to support the transition of the Czech Heating sector from lignite to gas Received a Sustainalytics rating of 19.4 "Low Risk", ranked 3rd out of 83 Gas Utilities The Czech Republic is AA-rated and the Company has a Senior Unsecured Rating: S&P BBB+ (stable) / Fitch BBB (stable). Senior Unsecured Notes issued by the Company are notched up to BBB+ by Fitch. 65,000km of gas pipelines c. 2.3m off-take points Current Shareholding & Corporate Structure sunsuper 25.00% CGN Holdings S.à r.l O MACQUARIE 75.00% BCi Allianz (ill 55.21% 26.29% 18.50% Czech Gas Networks, S.à r.l (Lux) c. 70TWh/year distributed gas "CGNI" or "Issuer" Czech Gas Networks Investments S.à r.l (Lux) EUR/CZK Notes Bank Facilities EUR Green Notes Geographic Footprint & Market Presence Czech Gas Distribution Regions by Company/Operator Market Shares by customers coverage (YE2020) "CGH" or "Operating Company" 4% 15% 81% GasNet eg.d PPO Source: Company Information. 9 Czech Grid Holding, a.s. (Cz) GasNet GasNet Služby gasnet.cz 45#469 The Czech regulation for Gas Distribution is stable, attractive and predictable, in full alignment and compliance with EU directives and international practices. ERO's Key Principles & Objectives . • Stability and sustainability of tariffs Predictability of regulation • Interest of all stakeholders guaranteed • Objective and transparent decision making . Consistency with legislation Allowed Revenue Breakdown Key Elements of the Czech Gas Distribution Regulation • Standard RAB-based revenue-cap model • Current grid infrastructure regulation in place since 2002 • • Currently in the 5th RP, which started in 2021 and ends in 2025 Regulator traditionally opted for stable tariffs across regulatory periods "This framework provides stability, transparency, and predictability to operators' cash flows." (S&P, 2020) RAB and NAV Reconciliation Schedule NAV (CZKM) RAB/ NAV (%) Allowed 75 RP4 RP5 100% Profit (RAB X WACC) + Allowed D&A 70 90% + Allowed Opex Allowed 100% 65 80% Revenue 96% 95% 70% 60 89% 60% 55 84% 50% 50 73% 40% 45 72% 69% 70% 30% • RP5 WACC was set to 6.43% (pre-tax) 40 65% 67% 60% 62% 20% Opex level based on the average of 2017-2019 actuals, with under- / outperformance sharing at the level of GasNet set at 50% / 50% 35 10% 30 0% Source: Company Information, ERO. 9 . 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E Upward reconciliation of RAB to match the higher underlying net book value in motion until 2025, with non-binding Capex plans for period 2021-2025 and 2025-2030 gasnet.cz 46#479 GasNet is the regulated owner & operator of the distribution network, with 2.3 million end connections. The transformation process towards a more sustainable energy sector requires significant efforts across the whole energy sector. & ກ Natural Gas Producers (Norway, Russia) Gas Transport* (NET4GAS) Transport Fees Monthly Payments International transit* Other distribution areas⭑ Gas Storage ERU Czech Energy Regulatory Office (ERO) • Independent regulator * Publish of the price decisions " Pricing for distribution (DSO's) OTE-W Czech electricity and gas market operator • Organization of the short-term electricity and short-term gas market . Gas Market balancing " Pricing for transport # Control activity . Customer protection . Protection os Gas Market participants # Support of renewable energy sources Distribution Services GasNet* Final Customers Retail (Annual rolling billing cycle) Business (Monthly billing) OTE Fees Monthly Payments Natural Gas Retailers Fully liberalized market Czech Electricity and Gas Operator* (OTE) Payment for distribution Fixed/Variable (Transport fees included) OTE fees Final Payment Gas commodity Distribution (incl. Transport) OTE fees Gas Flow Cash Flow * Subject regulated or partially regulated by ERO gasnet.cz 47#489 Czech energy consumption is dominated by fossil fuels Primary energy consumption 2020, TWh Coal Oil Nuclear Natural gas RES Power balance¹ -16 Other Emissions by source 2017, MtCO2 170 Coal 104 Oil 95 Natural Gas 17 96 Cement 2 54 Flaring <1 Other 1 22 Selected key aspects of the Czech energy landscape 62 A Nuclear friendly B Self-sufficient power generation C Low RES potential D Cold winters E Importing fuels Decarbonisation will have to focus on replacing coal and oil 9 1. Electric power is not a primary energy source. Taking the perspective of the Czech Republic, negative balance reflects net exports. Source: McKinsey DPO and MPM models, CO2: ourworldindata.org, Statni energeticka koncepce CR gasnet.cz#499 9 Coal is used mainly in household heating and industry Final energy consumption, 2019, TWh Transport ° Households 15 27 Industry & 000 services Source: ERU, Czech Statistical Office, McKinsey analysis 64 68 88 321 13173 Split by fuel, TWh Natural gas 84 Coal 79 25 25 16 83 83 Oil 68 Electricity 62 Biomass 28 57 57 46 166 gasnet.cz#505 Material wise, we are ready to distribute a 20% blend of hydrogen with NG. Specifically, pipeline components are prepared to a large extent for 100% H2 distribution Current Steel and PE Pipeline Breakdown 6 ■Owned LP and MP PE in km 13 885 28% ■Owned LP and MP Steel in km 35 368 72% Source: GasNet; Marcogaz (EU); NREL (USA); GRTGaz (FR); HyDeploy (UK); Hy4Heat (UK); internal analysis. • • • PE mains are crucial for future distribution of blended gases and hydrogen CGNI is well-positioned with its current pipeline material mix A significant proportion of ~72% of current, owned local network length are already in PE 60% of municipalities have already a PE pipeline share higher than 99% By replacing legacy materials (steel) with modern materials (PE), the Company also expects to drive emission and cost savings. gasnet.cz 50#519 2021-2050: GasNet to enter a deep transformation process by supporting replacement of coal with natural gas within this decade; while preparing in parallel for sustainable hydrogen distribution after 2030. Replacement of coal by NG ...from natural gas Insertion of blue hydrogen Import of green hydrogen Fuel mix Natural gas only Blended NG/H₂ Stepwise transition to pure H₂ distribution (per region) Customers Replacement of coal in Energy and Industry Industry and Energy sector with increasing H₂ demand Retail Customers to switch from blended NG to H2 Low carbon gases in heavy transport Network Planning/Retrofit of HP network Retrofit of Customer Appliances 6 2021 Retrofit of MP and LP Network (PE) 2030 2035 2040 2050 ..to H₂ ✓ At scale available ✓ Competitive ✓ Affordable ✓ Sustainable gasnet.cz 51