GEEN Holding statement - COVID-19

Dear Business Partners and Customers,

With regard to the current global situation, we would like to assure you that all divisions of the GEEN group in CZ and other countries continue to operate, and we continue to fulfil our strategy and business plans. The nature of the renewable energy sources we use in our production ensures permanent operation that is minimally dependent on third parties; this allows us to reliably plan our production and cash flow.

We were naturally also affected by the COVID-19 pandemic, but we adopted strict preventive hygiene measures in all offices and operations in accordance with the recommendations of local authorities. Power plants in the Czech Republic, Slovakia and Georgia produce energy with almost no required human intervention. The operation of power plants in Croatia is ensured by weekly shifts that do not overlap. The managers of branches in different countries are in regular contact with the directorate-general through modern technology (video conferencing, remote access, shared data, etc.). The power plants are also connected to a central monitoring system with continuous operation. This ensures the smooth running of our power plants. Our salespeople and the whole BackOffice team work remotely and continue to serve customers with the care they are accustomed to. The operation of the entire company is therefore secured without failures or significant restrictions.

The GEEN Development division continues to build our third biomass combustion plant in Croatia. The construction, financing and technology supply are all taken care of. Everything is going according to plan. We are also preparing a project for the construction of a hydropower plant in Georgia, and we are analysing other opportunities for acquisition and construction.

Our price strategy is aimed at ensuring long-term stability in the current recession. We have contractually guaranteed purchase prices of energy from all sources in our country, in Slovakia, in Croatia and in Georgia. We have secured biomass supplies for our Croatian power plants, and its low price also allows us to conclude additional contracts under favourable conditions. This trend is not about to change in the near future. This makes our profit higher than expected. The regulated, clear environment allows us to plan and predict market development and our own expansion with a 10-year outlook.

The great advantage of the GEEN group is that our divisions cover the entire journey of the electricity, from production through distribution, to sale to the end customer.

GEEN, which sells electricity and gas to end customers, supplies energy for tens of thousands of supply points, especially households. Due to this division of our customer portfolio, we don't expect any significant fluctuations in the number of our customers. Energy prices are currently very favourable, and GEEN Sale helps customers fix these prices for the next period. We believe this service to be very important and beneficial for our customers.

We don't speculate and take risks in energy auctions promising short-term discounts without stable price guarantees. We are able to cover fluctuations in energy prices ourselves without burdening our customers with frequent revaluations. This is the advantage of a company that produces its own electricity. Our goal is long-term stability.

The energy sector, in which GEEN operates, exhibits constant growth. Electricity is a strategic commodity with guaranteed present and future interest. It is also clear that the use of renewable sources in the production of electricity will become increasingly important. We believe that directing our investments into this segment is the right way to go.

Dear Business Partners and Customers, the numbers speak for themselves, so here is some important information about the company in conclusion. The company currently holds assets in the approximate amount of CZK 5.48 bln., with liabilities of CZK 2.71 bln. The average rate of return of our investments is 5.7 years.

Thank you for putting your trust in us; we look forward to our future cooperation

Ing. Aleš Mokrý

CEO

Dear Business Partners and Customers,

With regard to the current global situation, we would like to assure you that all divisions of the GEEN group in CZ and other countries continue to operate, and we continue to fulfil our strategy and business plans. The nature of the renewable energy sources we use in our production ensures permanent operation that is minimally dependent on third parties; this allows us to reliably plan our production and cash flow.

We were naturally also affected by the COVID-19 pandemic, but we adopted strict preventive hygiene measures in all offices and operations in accordance with the recommendations of local authorities. Power plants in the Czech Republic, Slovakia and Georgia produce energy with almost no required human intervention. The operation of power plants in Croatia is ensured by weekly shifts that do not overlap. The managers of branches in different countries are in regular contact with the directorate-general through modern technology (video conferencing, remote access, shared data, etc.). The power plants are also connected to a central monitoring system with continuous operation. This ensures the smooth running of our power plants. Our salespeople and the whole BackOffice team work remotely and continue to serve customers with the care they are accustomed to. The operation of the entire company is therefore secured without failures or significant restrictions.

The GEEN Development division continues to build our third biomass combustion plant in Croatia. The construction, financing and technology supply are all taken care of. Everything is going according to plan. We are also preparing a project for the construction of a hydropower plant in Georgia, and we are analysing other opportunities for acquisition and construction.

Our price strategy is aimed at ensuring long-term stability in the current recession. We have contractually guaranteed purchase prices of energy from all sources in our country, in Slovakia, in Croatia and in Georgia. We have secured biomass supplies for our Croatian power plants, and its low price also allows us to conclude additional contracts under favourable conditions. This trend is not about to change in the near future. This makes our profit higher than expected. The regulated, clear environment allows us to plan and predict market development and our own expansion with a 10-year outlook.

The great advantage of the GEEN group is that our divisions cover the entire journey of the electricity, from production through distribution, to sale to the end customer.

GEEN, which sells electricity and gas to end customers, supplies energy for tens of thousands of supply points, especially households. Due to this division of our customer portfolio, we don't expect any significant fluctuations in the number of our customers. Energy prices are currently very favourable, and GEEN Sale helps customers fix these prices for the next period. We believe this service to be very important and beneficial for our customers.

We don't speculate and take risks in energy auctions promising short-term discounts without stable price guarantees. We are able to cover fluctuations in energy prices ourselves without burdening our customers with frequent revaluations. This is the advantage of a company that produces its own electricity. Our goal is long-term stability.

The energy sector, in which GEEN operates, exhibits constant growth. Electricity is a strategic commodity with guaranteed present and future interest. It is also clear that the use of renewable sources in the production of electricity will become increasingly important. We believe that directing our investments into this segment is the right way to go.

Dear Business Partners and Customers, the numbers speak for themselves, so here is some important information about the company in conclusion. The company currently holds assets in the approximate amount of CZK 5.48 bln., with liabilities of CZK 2.71 bln. The average rate of return of our investments is 5.7 years.

Thank you for putting your trust in us; we look forward to our future cooperation

Ing. Aleš Mokrý

CEO