In response to the questions raised by the SSH representative at the 40th General Meeting of Shareholders of Petrol d.d., and which the Management Board of the Company answered at the General Meeting, we confirm that the recognised Other provisions presented in disclosure 5.34 of the Annual Report for 2024 refer to potential partial non-compliance pertaining to renewables in transport in Slovenia and Croatia. The provisions were recognised under the prudence principle and with regard to the inability to achieve the desired share of renewable energy, primarily the share of biofuels, and related potential expenditure.

The required share of renewable energy in transport varied between countries in previous years; in Slovenia, it was higher than required by Directive (EU) 2018/2001 and higher than in the majority of the neighbouring countries. It was technically not possible to achieve the target share by adding biofuels because it exceeded the European norm for internal combustion engine vehicles referring to biofuel blending, which is set at 7%. A higher share of renewable energy can only be achieved by blending synthetic biofuels, which requires additional investments. Furthermore, it should be taken into account that the limited margin formula in Slovenia does not include the additional costs of blending more expensive synthetic biofuels, meaning that the entire cost is unduly on sellers’ shoulders. In addition to the disproportionate requirements, this arrangement in Slovenia did not foresee supporting actions and, moreover, it did not take into account the different degree of development and the cost of relevant technologies available to individual sellers to achieve the share of RES in transport.

The Management Board has been performing due supervision intensively, making sure that the actions and plans to ensure compliance are in place, and has already importantly increased the share of RES with a share of biofuels in fuels sold in the last two years. To be able to increase the share, we need to complete certain additional investments, which have already started.

Petrol d.d., Ljubljana publishes all information in accordance with the effective legislation to ensure transparency and compliance and in accordance with the internal policy of publishing announcements evenly for all stakeholders in interim and annual reports. We do not disclose detailed information for the purpose of protecting the Company’s interest.