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ANNUAL
REPORT
of the Petrol
Group and
Petrol d.d.,
Ljubljana,
2021

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
2
Petrol, Slovenska energetska družba, d.d., Ljubljana
Dunajska cesta 50, 1000 Ljubljana
Registration number: 5025796000
Companies Register entry: District Court of Ljubljana, entry number: 1/05773/00
Share capital: EUR 52,240,977.04
VAT ID: SI80267432
Telephone: +386 (0)1 47 14 232
www.petrol.eu, https://www.petrol.si/

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
3
TABLE OF CONTENTS

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
4
INTRODUCTION

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021

5

1. Business highlights of 2021





The Petrol Group Unit 2021 2020
Index
2021/2020
Sales revenue EUR million 4,960.1 3,079.4 161
Adjusted gross profit
1
EUR million 543.4 426.9 127
Operating profit EUR million 159.0 91.6 174
Net profit EUR million 124.5 72.3 172
Equity EUR million 908.7 826.7 110
Total assets EUR million 2,383.5 1,792.1 133
EBITDA
1
EUR million 238.1 166.6 143
EBITDA/Adjusted gross profit
1
% 43.8 39.0 112
Operating costs/Adjusted gross profit
1
%78.285.891
Net debt/Equity
1
0.56 0.40 140
Net debt/EBITDA
1
2.1 2.0 108
ROE
1
%14.38.8162
ROCE
1
%11.47.4155
Added value per employee
1
EUR thousand 70.1 56.8 124
Earnings per share EUR 60.6 35.2 172
Share price as at last trading day of the year EUR 508.0 325.0 156
Net investments
1
EUR million 233.2 85.4 273
Volume of petroleum products sold thousand tons 3,143.7 3,012.7 104
Volume of liquefied petroleum gas sold thousand tons 141.2 148.8 95
Volume of natural gas sold TWh 36.0 27.2 133
Volume of electricity sold TWh 15.1 19.9 76
- of which sale of electricity to end customers TWh 3.6 1.7 210
Revenue from merchandise sales EUR million 487.2 446.9 109
1
Alternative performance measure (APM) as defined in chapter Alternative Performance Measures.
The Petrol Group Unit
31 December
2021
31 December
2020
Index
2021/2020
Number of employees 6,237 5,157 121
Number of service stations 593 500 119
Number of e-charging points operated by the Petrol Group 296 184 161
Number of electricity customers thousand 224.6 92.1 244
Number of natural gas customers (data for Geoplin d.o.o., Ljubljana are not included) thousand 47.4 50.1 94

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
6
EBITDA Net profit or loss
Net debt/EBITDA Structure of invested assets
excluding acquisitions of
companies
Volume of petroleum products sold Number of service stations

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021

7

2. Letter from the President of the Management Board

Dear shareholders, business partners and co-workers,

2021 was a time in which our perseverance, readiness for change and confidence in the future
were put to the test. Petrol successfully adapted its operations to fit the measures to mitigate
the pandemic, faced emergencies in global energy markets and, despite the challenges posed
throughout the year, confidently followed the set strategic and annual business goals. As one
of the largest and most ambitious energy companies in the region, we are building the future
through partnerships with the economy, the public sector, households and other stakeholders
through an integrated sustainable offer.

A Volatile Business Environment

The business environment was anything but peaceful and supportive in 2021. Among the
external circumstances that co-created the conditions of our operations are the continuation of
the COVID-19 epidemic and the state's measures to mitigate its consequences. They were
less restrictive in 2021 than in the year before. Another factor that has directly affected all
energy companies, and indirectly many industries and other subsystems of society, is the
energy crisis. In 2021, it manifested through a high and unpredictable rise in the prices of fuels
and energy products, especially electricity and natural gas, which reached historical price
levels. Price shocks demanded interventions by the state, such as a temporary restriction on
the price of the heating oil in Slovenia and fuel prices in Croatia, and even led to the withdrawal
of some providers from the market. Nonetheless, energy transition remains high on the
business community's agenda by finding a way to transition to a low-carbon society in which
the Petrol Group is already playing an active role. Stable economic growth in Slovenia also
had an encouraging effect on our operations in 2021.

A Clear Vision and Decisive Action in 2021

The Petrol Group closely monitors the volatile developments in the business environment, but
this did not obscure its clearly defined path to the energy future. After setting high annual
targets for 2021 (including the highest planned EBITDA in Petrol's history) in December 2020,
we opened 2021 in the same ambitious spirit by adopting the Strategy of the Petrol Group
for the 2021 – 2025 period. In it, we set a bold vision: “To become an integrated partner in
the energy transition, offering an excellent user experience.” We are committed to making a
transition to green energy and are devoting significant investments to achieve it. We strive to
remain the first choice for energy transition projects in the region by offering integrated services
with high added value. Ensuring business growth and increasing the profitability of operations
while maintaining the commitment to sustainable development are our main principles.

In January 2021, we completed the acquisition of E 3, d.o.o., which, as one of the largest
electricity sellers in Slovenia, makes an important contribution to strengthening the Petrol
Group in the sale of electricity. Including E 3, d.o.o., the Petrol Group is the second-largest
provider of electricity to end-users in Slovenia with a total market share of 22.6 percent and a
total of over 210,000 customers.


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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
8
We have also not forgotten our commitment to supply the market with quality petroleum
products, so in the spring of 2021, we introduced a new generation of Q max fuels. They
bring lower consumption, greater energy efficiency and lower emissions, and therefore
represent another step towards low-carbon mobility. To strengthen market competitiveness
and customer satisfaction, we continued to adjust and diversify our offer. We introduced
innovative approaches to customers, developed new services and sustainable models. We
devoted a lot of attention in sales to upgrading the “Na Poti”, OneCharge and mBills digital
services, the faster processing of complaints, the introduction of payment counters without
entering the point of sale. With the idea of durability and limiting infections in mind, we offered
customers the option of pouring Coffee-to-go into their own cups for a lower price.
In 2021, we also left a strong mark on the region. At the end of July 2021, we proudly launched
the Ljubač wind power plant in Croatia, providing green electricity for more than 30,000
households, which is the second wind farm for the Petrol Group. In October, we successfully
completed the acquisition of Crodux Derivati Dva d.o.o. This is the largest acquisition of
Petrol d.d., Ljubljana, in the last ten years, which significantly contributes to the expansion of
the Petrol Group beyond the borders of Slovenia. This consolidated our position as the second-
largest supplier of petroleum products in Croatia and increased our market share in Croatia to
23 percent. With this combination of two strong brands, the Petrol Group has increased its
team to more than 6,000 employees. Through a strong sales network on the Croatian market,
we will expand our customer portfolio in the field of energy products and energy transition
services.
Among the key internal efforts, the reorganisation of the Petrol Group is worth highlighting.
It will contribute to the achievement of the strategic goals of 2021 2025 through more efficient
processes, the unification and optimisation of the operation of support functions, customer
focus and a unified presence on the markets in subsidiaries.
Regarding the energy crisis in 2021, it should be pointed out that the Petrol Group has
successfully mitigated the consequences of negative trends in the energy market through a
comprehensive energy offer and effective adaptation to the aggravated market conditions.
Through an efficient procurement process, we ensured a stable and reliable supply of fuels
and energy products and comprehensive support for our customers, and through the loyalty
programme, additional benefits to mitigate the consequences of negative trends in the energy
market. In our opinion, given the trends in the global energy market in 2021, insisting on low
energy prices posed greater risks to the operations of energy companies and energy
customers than the adjustment of energy prices, so we raised electricity and natural gas prices
for households as of 1 December 2021.
Exceeded the annual and strategic targets despite the unfavourable market conditions
Regardless of the uncertain circumstances of the Petrol Group's operations, we are proud to
report that in 2021, we achieved ambitious annual targets and also longer-term ones for the
strategic period until 2025, despite the fact that not all the assumptions of our annual plan for
2021 have been met. For example, the pandemic was not contained in the first half of 2021.
We managed to mitigate the negative effects of the pandemic and energy crisis on our
operation by responding effectively to changing market conditions, adjusting and diversifying

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
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supply, cost optimisation and rationalisation of operations. What's more, we have even
exceeded our ambitious goals. In 2021, the Petrol Group generated EUR 5.0 billion in sales
revenue or 13 percent more than in the pre-pandemic year 2019 and 61 percent more than in
2020. The adjusted gross profit totalled EUR 543.4 million, which is 15 percent more than in
2019 and 27 percent more than in 2020. The achieved EBITDA in the amount of EUR 238.1
million is 43 percent higher than in 2020, and the net profit in the amount of EUR 124.5 million
exceeded the same indicator from the previous year by 72 percent. In 2021, the Petrol Group
allocated EUR 233.2 million for investments in property, plant and equipment, intangible assets
and long-term investments.
We are also proud of our regional indicators, which show the strengthening of the Petrol
Group's strength in the region of SE Europe. In 2021, we generated 28 percent of operating
profit and 31 percent of the EBITDA in the region. According to the number of employees, as
many as 47 percent come from the region. In 2022, we intend to further strengthen these
regional indicators (with the exception being the number of employees).
The solid operational and financial position of the Petrol Group was also confirmed by Standard
& Poor's with the reassignment of the long-term BBB- credit rating with a stable outlook.
A shareholder policy based on a long-term maximisation of returns for shareholders is one
of the cornerstones of Petrol’s development strategy. The Management Board advocates a
stable long-term dividend policy, which best fits the Petrol Group’s long-term development
targets. Petrol d.d., Ljubljana paid the same dividend for 2020 as for 2019, namely EUR 22.0
gross per share.
Commitment to Sustainable Development and Care for Employees
In the Petrol Group, sustainable development is an important part of strategic management.
We pay special attention to sustainable reporting, which is why the Petrol Group issued the
Sustainability Report of the Petrol Group for 2020 in July 2021. We received the award of
the Finance newspaper for the best annual report among companies that are public interest
entities, and the award for the best annual report in sustainable development for 2020.
We are also proud of our recognised efforts in caring for employees. In 2021, as the most
distinguished employer in the energy sector, we were the recipient of the Distinguished
Employer 2020 award in the Energy, Utilities, Water and Gas Supply sector. This also places
us in the TOP 10 list of the most reputable employers in Slovenia. The fact that we have been
among the most reputable and desirable employers among job seekers for many years is also
reflected in the high level of internal climate, satisfaction, agility and commitment of employees.
At the same time, it is worth highlighting our primary concern for the health of employees and
customers under the circumstances of the epidemic. Through good organisation, we ensured
that the points of sale operated smoothly and that the employees performed their work
efficiently even while working remotely.
Mission: Energy Transformation
2021 was not an easy year for anyone. But that doesn't take the wind out of our sails, as our
view goes much further. We are driven by the awareness that we are operating in an industry

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
10
that plays a critical role in the mission of transitioning to a low-carbon society. One of the
greatest fundamental transformations of the industry imaginable is unfolding before our eyes.
Experts say that the energy demand will only increase, and the energy landscape will change
more in the coming decade than in the last 100 years.
The Petrol Group already feels a part of this exciting global transformation, in which the future
of energy will be closely linked to new technologies for clean energy production. This is why
we are persistently developing state-of-the-art low-emission fuels, enabling more
environmentally friendly mobility, co-creating energy-efficient cities, businesses and homes,
building renewable energy sources for green electricity… As an energy company, we are
already influencing the transformation of individuals, local communities, companies, the entire
economy and contributing to the achievement of the binding environmental goals of our country
within the European Union.
The Petrol Group is looking at 2022 with cautious optimism. We are thankful to our customers
for always returning to Petrol for fuel, energy and advanced energy and environmental
solutions, shareholders for their trust even in uncertain situations, the entire team of employees
for endurance and dedication, and business partners for their support and cooperation. We
look forward to a joint journey into the energy of the future.
Nada Drobne Popović
President of the Management Board
HIGHLIGHTS:
x As one of the largest and most ambitious energy companies in the region, we are building
the future through partnerships with the economy, the public sector, households and other
stakeholders through an integrated sustainable offer.
x The Petrol Group has successfully mitigated the consequences of negative trends in the
energy market through a comprehensive energy offer and effective adaptation to the
aggravated market conditions.
x One of the greatest fundamental transformations of the industry imaginable is unfolding
before our eyes.
x As an energy company, we are already influencing the transformation of individuals, local
communities, companies and contributing to the achievement of the binding environmental
goals of our country within the European Union.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
11
3. Statement of the Management’s Responsibility
Pursuant to Article 60a of the Companies Act, members of the Management Board and the
Supervisory Board of Petrol d.d., Ljubljana state that the Annual Report of the Petrol Group
and Petrol d.d., Ljubljana for the year 2021, including the corporate governance statement and
the non-financial statement, has been prepared and published in accordance with the
Companies Act, the Financial Instruments Market Act and the International Financial Reporting
Standards as adopted by the EU.
As provided in Article 110 of the Financial Instruments Market Act, members of the
Management Board of Petrol d.d., Ljubljana comprising Nada Drobne Popović, President of
the Management Board, Matija Bitenc, Member of the Management Board, Jože Bajuk,
Member of the Management Board, Jože Smolič, Member of the Management Board, and
Zoran Gračner, Member of the Management Board and Worker Director, declare that to their
best knowledge and belief:
x the financial report of the Petrol Group and Petrol d.d., Ljubljana for the year 2021 has
been drawn up in accordance with the International Financial Reporting Standards as
adopted by the EU and gives a true and fair view of the assets and liabilities, financial
position, financial performance and comprehensive income of the company Petrol d.d.,
Ljubljana and other consolidated companies as a whole;
x the business report of the Petrol Group and Petrol d.d., Ljubljana for the year 2021 gives
a fair view of the development and results of the Company’s operations and its financial
position, including the description of the material risks that the company Petrol d.d.,
Ljubljana and other consolidated companies are exposed to as a whole.
Nada Drobne
Popović
President of the Management Board
Matija Bitenc
Member of the Management Board
Jože Bajuk
Member of the Management Board
Jože Smolič
Member of the Management Board
Zoran Gračner
Member of the Management Board and
Worker Director
Ljubljana, 10 March 2022

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2021
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4. Report of the Supervisory Board
Composition of the Supervisory Board in 2021
Due to the expiry of the terms of office in 2021, the Supervisory Board underwent changes in
the number of members. In February, first, the four-year term of office of the members of the
Supervisory Board, who are employees’ representatives, expired, i.e. Alen Mihelčič, Mark Šavli
and Robert Ravnikar. All three members took up a new four-year term on the Supervisory
Board on 23 February 2021. On 10 April 2021, the term of office of President Sašo Berger and
members of the Supervisory Board Igo Gruden, Metod Podkrižnik, Sergij Goriup and Janez
Pušnik also expired. On 11 April 2021, Borut Vrviščar, Alenka Urnaut Ropoša, Aleksander
Zupančič and Mário Selecký took over a new term of office as members of the Company's
Supervisory Board on the basis of their appointment at the 32
nd
General Meeting in December
2020. The four-year term of office of Mladen Kaliterna, a member of the Supervisory Board,
expired on 15 July 2021, but based on his appointment at the 32
nd
General Meeting, he too
continued with a new four-year term on the Supervisory Board on 16 July. Branko Bračko, who
was due to take office on 11 April 2021, resigned on 25 March. At the 33
rd
General Meeting,
which was held on 22 April 2021, Janez Žlak was elected a new member of the Supervisory
Board. On the same day, the Supervisory Board held a constituent meeting, at which the
members elected Janez Žlak President of the Supervisory Board and Borut Vrviščar Deputy
President of the Supervisory Board. The Supervisory Board appointed two committees, namely
the Audit Committee, comprising the President of the Committee Alenka Urnaut Ropoša and
Members Aleksander Zupančič, Mladen Kaliterna, Robert Ravnikar and External Member
Janez Pušnik, and the Human Resources and Management Board Evaluation Committee,
comprising the President of the Committee Borut Vrviščar and Members Janez Žlak, Mário
Selecký, Marko Šavli and Alen Mihelčič. Both the previous and the new composition of the
Supervisory Board in 2021 was such that its members complemented each other in terms of
their expertise and competencies. The composition was also diverse regarding education,
work experience and personality traits, all of which allowed for an effective exchange of views
and opinions.
Work of the Supervisory Board and Informing the Public
In 2021 the Supervisory Board and Management Board of Petrol d.d., Ljubljana focused on
substantive matters falling within their remit. The members of the Supervisory Board carried
out their work professionally, focusing on the effective performance of their functions, including
in the committees. Supervisory Board members thoroughly prepared themselves for the topics
discussed, gave constructive proposals based on verbal and written information obtained from
the Management Board, and adopted decisions competently in line with the Rules of
Procedure, internal regulations and legal powers. The work of the Supervisory Board was
effectively supported by the proposals of Supervisory Board committees and their substantive
input. In accordance with the law and internal rules, the Supervisory Board kept the
stakeholders informed about key decisions and information with a significant impact on the
Company's operations. In compliance with the Slovenian Corporate Governance Code for
Listed Companies, the Supervisory Board states in this report that all the costs incurred in
connection with its work are disclosed in this annual report and in the Report on Remuneration
to the Management and Supervisory Bodies of Petrol d.d., Ljubljana in the 2021 business year.

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Supervisory Board Meetings and Topics Discussed
In 2021 the Supervisory Board met ten times.
The year 2021 was undoubtedly marked by the historic acquisition of a Petrol Group company
- Crodux Derivati Dva d.o.o. The main focus of the Supervisory Board was thus on monitoring
the procedures for the successful integration of this company. After fulfilling the suspensive
conditions, Petrol d.d. Ljubljana completed the acquisition of a 100 percent interest in the
Croatian company Crodux Derivati Dva d.o.o. The Petrol Group is thus consolidating its
position as the second-largest supplier of petroleum products in Croatia. The acquisition of
Crodux Derivati Dva d.o.o. is the largest acquisition of Petrol d.d., Ljubljana in the past 10
years and represents the most significant one-time increase in the number of points of sale in
the Petrol Group's history. With this acquisition, the Petrol Group acquired 93 new points of
sale. With a total of 204 points of sale, the Petrol Group's market share in Croatia grew from
13 percent to 23 percent. With the merger of Crodux Derivati Dva d.o.o. with Petrol d.o.o.,
Zagreb, the Company's Management Board successfully and significantly pursues its strategic
goal, which envisages the expansion of operations outside the borders of Slovenia. Through
a strong sales network on the Croatian market, the Company is successfully expanding its
customer portfolio in the field of energy products and energy transition services.
The focus of the Supervisory Board meetings in 2021 was on new projects and the
identification and management of business risks, which is important for the successful future
of the Company and the Petrol Group. The COVID-19 pandemic still received a great deal of
attention, and in 2021, it dictated adjustments to operations in key areas, mainly through
various measures to mitigate it. By adjusting and diversifying the offer and by cost
rationalisation and optimisation, the Management Board managed its operations successfully
and, despite the limitations, exceeded the plan and created excellent annual results.
The Most Important Topics Discussed at the Supervisory Board’s Meetings in
2021
The first meeting, which took place in January (58
th
meeting of the Supervisory Board of the
previous composition), was aimed at the final coordination and approval of the new business
strategy of the Company and the Petrol Group for the period from 2021 to 2025. The new, very
ambitious business strategy was adopted as a result of the set goals, orientations and vision
of the new administration appointed in 2020 and its response to the energy transition to a low-
carbon society and the development of new technologies that transform sustainable energy
production, sales and use.
At the meeting of 18 March 2021, which was scheduled in the financial calendar, the
Supervisory Board approved the audited Annual Report of the Petrol Group and Petrol d.d.,
Ljubljana for 2020, the proposed allocation of accumulated profit and the convening of the 33
rd
General Meeting.
The next meeting by correspondence of the Supervisory Board in early April was aimed at
adopting amendments to the financial calendar, which included silent periods in the financial

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calendar in connection with the Company's securities trading rules and changed the date of
the constitutive meeting of the Supervisory Board.
On 22 April 2021, the constituent meeting of the new Supervisory Board was held, at which
the Supervisory Board appointed a president and deputy president from among its members,
established the Audit Committee and the Human Resources and Management Board
Evaluation Committee and appointed their members.
The next meeting in May was held as scheduled in the financial calendar for 2021 and primarily
addressed the quarterly report on the operations of the Petrol Group and Petrol d.d., Ljubljana.
The successful adjustment of sales to market conditions and efficient cost management was
reflected in a 16 percent growth in EBITDA compared to the same period in 2020. The net
profit of EUR 27.8 million recorded a 27 percent increase compared to the same period in
2020. The EBITDA (+46 percent) and net profit (+52 percent) in the first three months of 2021,
despite strict restrictive measures, were also better compared to the results of the first three
months of 2019 (pre-pandemic period). Due to the successfully renewed systematisation and
organisation of the Company, which enables the transparency of operations and the
establishment of a functional system of responsibility, the Supervisory Board also discussed
new delimitations of work areas and competencies between members of the Management
Board.
The June meeting was, like the meeting in October, held to address strategic and other
important issues; it was mainly dedicated to a more detailed presentation of the adopted
strategy of the Company and the Petrol Group to new members of the Supervisory Board.
In accordance with the financial calendar, the next meeting of the Supervisory Board was held
on 26 August 2021 and was intended primarily to discuss the Report on the Operations of the
Petrol Group and Petrol d.d., Ljubljana in the first half of 2021 and to revise or adopt some key
internal regulations, including the Rules of Procedure of the Supervisory Board and the internal
regulations of both committees of the Supervisory Board. In the second quarter, the Petrol
Group again successfully pursued the set goals for 2021. Successful adjustment of sales to
market conditions and efficient cost management in the first half of 2021 was reflected in 59
percent growth in the EBITDA compared to the same period in 2020. The adjusted gross profit,
EBITDA and net profit were also better in the first half of 2021 compared to the pre-pandemic
results.
At the October meeting, in addition to discussing strategic issues, the Supervisory Board was
informed about the activities related to the acquisition of the company and the completion of
the transaction of Crodux Derivati Dva d.o.o., further steps and structured integration
procedures. The Supervisory Board also discussed the current situation on the electricity and
natural gas market and the Company's response to them, in connection with which the
Supervisory Board did not detect any irregularities.
At the November meeting scheduled in the financial calendar, the Supervisory Board
discussed the Reports on the operations of the Petrol Group and Petrol d.d., Ljubljana, in the
first nine months of 2021, and determined the contents and terms of work of the Supervisory
Board by adopting the financial calendar for 2022. The successful adjustment of sales to the

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15
market conditions and efficient cost management in the first nine months of 2021 was reflected
in a 54 percent growth in EBITDA compared to the same period in 2020.
At its last meeting in 2021, the Supervisory Board discussed and approved the Business Plan
of Petrol d.d., Ljubljana and the Petrol Group for 2022, which is optimistic and pursues
ambitious goals from the Petrol Group's strategy until 2025, in which the Company committed
to green energy. At this meeting, the Supervisory Board carried out a number of activities
related to good practices in corporate governance, including the identification, disclosure,
management and elimination of conflicts of interest.
All the working procedures of the Supervisory Board are geared towards ensuring the basic
rules that must apply in the effective operation of this body:
x compliance with the rules and guidelines agreed with the Rules of Procedure of the
Supervisory Board;
x ongoing training of all persons involved in the functioning of the body and the adoption of
new best practices related to corporate governance;
x transparent functioning of the Supervisory Board in relation to the Management Board and
vice versa, and in
relation to all external stakeholders;
x sufficient number of meetings to provide a thorough insight into the operations and
orientations of future development;
x full attendance of all Supervisory Board members and proactive functioning of each
member of the Supervisory Board;
x training of members, acquaintance with new trends, cooperation/acquaintance with all key
personnel, not only the Management Board of the Company, paying particular attention to
learning about the structure of the Company, the Petrol Group and its processes;
x pursuing a policy where financial indicators are only part of the full success story;
x short self-assessment of the Supervisory Board with a view to the timely identification of
the necessary changes and implementation of the measures. An in-depth self-assessment
will be carried out by the Supervisory Board after the first year of its term.
The Supervisory Board, acting within its powers, took responsible decisions and was briefed
on a number of other matters:
x adopting the 2021 Internal Audit work report;
x adopting the 2022 Internal Audit work programme;
x adopting the 2022 Audit Committee work programme;
x resolving conflicts of interest (the statements required under the applicable code were
signed by Supervisory Board members upon their appointment and also at the end of the
financial year, and published on the Company's website);
x giving consent to the Management Board in accordance with the Articles of Association
and other forms of approval for Management Board proposals;
x discussing the Workers’ Council reports concerning the involvement of workers in
management (in early 2022);
x assessing the work of the two committees, which kept the Supervisory Board regularly
informed through minutes, reports and proposals.

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Work of the Supervisory Board’s Committees
In 2021 the Supervisory Board's Audit Committee met ten times. The first four meetings in
the financial year were devoted to preparing a basis for the Supervisory Board's approval of
the annual report, which was done, among others, following a discussion with external
auditors. The Committee discussed the approval of the 2020 Internal Audit report, the audited
annual report and submitted a proposal for its approval to the Supervisory Board. It also dealt
with topics related to the Supervisory Board and the annual General Meeting.
At the other meetings, the Audit Committee discussed the quarterly reports on the operations
of the Petrol Group and Petrol d.d., Ljubljana (in May, August and November) and discussed
standard and other matters such as:
x progress of the preliminary audit of the 2021 annual report;
x preparation of the 2022 Audit Committee work programme;
x management of credit, foreign exchange and price risks; risk management in the Petrol
Group by quarter and its annual overview;
x it was briefed on Internal Audit reports and the 2022 Internal Audit work programme;
x it prepared the Rules of Procedure of the Audit Committee of the Supervisory Board of
Petrol d.d., Ljubljana and submitted it to the Supervisory Board for approval;
x it discussed the annual review of the competencies and tasks of the Audit Committee and
assessed its effectiveness in 2021;
x it was briefed on the report of authorised officers concerning the implementation of
corporate integrity guidelines;
x it discussed guidelines governing the performance of non-audit services by the statutory
auditor and proposed that the Supervisory Board adopts them;
x it was briefed on and monitored the expected changes in the International Financial
Reporting Standards on a regular basis and assessed the effect they may have had on the
financial statements;
x it was briefed on the procedure for selecting bidders for the audit of the Petrol Group's 2022
2024 Annual Report, conducted interviews with the bidders and proposed to the
Supervisory Board a candidate for the audit of the 2022 2024 Annual Report to be
proposed to the General Meeting for approval;
x it carried out an interview with the Head of Internal Audit;
x it discussed other topics falling within the competence of the Audit Committee.
The Supervisory Board's Human Resources and Management Board Evaluation
Committee met four times in 2021. The topics discussed were related to determining the
performance of the Management Board in 2020 and setting goals and criteria for determining
the performance of the Management Board in the next financial year (2022).
The Supervisory Board monitored the work of its committees based on their continuous
reporting to the Supervisory Board. Considering the implementation of all committee
resolutions, the review of their work and reports on the work of both committees presented at
the December meeting, the Supervisory Board deemed the work of both committees and the
Management Board to have been very good.

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17
Assessment of the Petrol Group’s Operations in 2021

The Petrol Group is a leading company in Slovenia and also plays a prominent role in the wider
region. Its operations are focused on achieving long-term growth and the ensuing stable return
for shareholders. In 2021, despite the ongoing pandemic, we witnessed stable economic
growth, which was accompanied by high growth in the prices of energy products. Measures to
contain the pandemic have become less restrictive on mobility and the economy, but as the
epidemiological situation worsened, the RVT condition for the performance of most activities
resulted in fewer visits to our points of sale and thus a decrease in the sale of merchandise.

The Petrol Group's sales revenue stood at EUR 5.0 billion in 2021, up 61 percent on the year
before. Adjusted gross profit stood at EUR 543.4 million, which was 27 percent more than in
2020. EBITDA totalled EUR 238.1 million and was 43 percent more than in 2020. Net profit
stood at EUR 124.5 million, which was 72 percent more than in 2020.

Approval of the 2021 Annual Report

At its 9
th
meeting of 17 March 2022, the Supervisory Board discussed the audited Annual
Report of the Petrol Group and Petrol d.d., Ljubljana for 2021. Having verified the Annual
Report, the financial statements and notes thereto, the Management Board's proposal on the
allocation of accumulated profit, and the certified auditor’s report, the Supervisory Board
approved the audited Annual Report of the Petrol Group and Petrol d.d., Ljubljana for 2021.

As part of the adoption of the Annual Report, the Supervisory Board also put forward its
position regarding the corporate governance statement and the statement of compliance with
the applicable code that have been included in the business section of the Annual Report of
the Petrol Group and Petrol d.d., Ljubljana for 2021, concluding the actual state of corporate
governance in 2021.



Dr Janez Žlak
President of the Supervisory Board









Ljubljana, 17 March 2022







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5. The Petrol Group in its region

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BUSINESS REPORT
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6. Strategic Orientation
6.1 Our Mission, Our Promise, Our Vision and Our Values
Our Mission
Through a broad range of energy products, comprehensive energy solutions and a digital
approach, we are putting the user at the centre of our attention. We want to become the first
choice for shopping on the go. Together with our partners, we create solutions for a simpler
transition to cleaner energy sources. We are building a green energy future in a decisive and
active manner, increasing the value for our customers, shareholders and society over the long
term.
Our Promise
Through energy transition, we create a green future and make a significant contribution to
protecting our environment.
Our Vision
To become an integrated partner in the energy transition, offering an excellent user
experience.
Our Values
x Respect: We respect fellow human beings and the environment.
x Trust: We build partnerships through fairness.
x Excellence: We want to be the best at all we do.
x Creativity: We use our own ideas to make progress.
x Courage: We work with enthusiasm and heart.
At Petrol, we feel a strong sense of responsibility towards our employees, customers,
suppliers, business partners, shareholders and society as a whole. We meet their expectations
with the help of motivated and business-oriented staff, we adhere to the fundamental legal and
moral standards in all the markets where we operate, and we protect the environment.
6.2 Strategy of the Petrol Group for the 2021 2025 Period
On 28 January 2021, the Supervisory Board of Petrol d.d., Ljubljana approved the Strategy of
the Petrol Group for the 2021 2025 period. Ensuring business growth and increasing the
profitability of operations while maintaining the commitment to sustainable development are
the main principles underpinning the preparation and implementation of the strategic plan. The
Petrol Group's strategy for the 2021 2025 period is an overarching development document
defining the path to a successful future based on the Group's vision, goals and strategic
business plan.
The environment in which the Petrol Group operates is facing important changes. The energy
transition towards a low-carbon company and the development of new technologies are
transforming the established ways how energy products are produced, sold and used. Petrol
is committed to making a transition to green energy and is making significant investments to
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21
achieve it. While co-creating opportunities brought about by the energy transition we will also
continue to supply the market with hydrocarbons.
The new strategy of the Petrol Group defines clear targets for implementing our vision to
become an integrated partner in the energy transition, offering an excellent user
experience. This helps us focus on our principal activity, which is to supply energy products,
as it is this area where we still see great potential in connection with the energy transformation.
An important pillar of our operation is gaining and retaining customers, so we will continue to
strengthen our sales network in the region. Thanks to new digital channels, a broader range
of energy products and a personalised offer, we will be even closer to our customers,
helping them make a transition from traditional energy sources to cleaner renewable energy.
Our aim is to become a key link in a broader ecosystem by offering energy sources that are
adapted to and co-shape the market. For this reason, we will strengthen operational efficiency
to free up additional funds for investments in renewable energy production.
The Petrol Group recognises the importance of sustainable development. The transition to
a low-carbon energy company, partnership with employees and the social environment, and
the circular economy constitute the Petrol Group's business commitments in this strategic
period. As a partner to industry, public sector and households, Petrol is assuming a leading
role in achieving the environmental goals.
Through the continuous development of fuels, we will actively contribute to reducing emissions.
At the same time, we will help reduce the carbon footprint of both the Petrol Group and our
customers by pursuing clear sustainable policies.
Thanks to improved internal processes, new competencies and empowered employees, we
will be even more proactive in addressing the current and future needs of our customers in
energy supply and adapt our operations to the user, who is at the centre of our attention. At
the same time, we want to become the first choice for shopping on the go in our traditional
segment of oil products and merchandise and services.
In this strategic period, we will remain present in all markets, focusing on:
x Slovenia, where we will consolidate our position as a leading energy company and partner
in the energy transition;
x Croatia, where we will use our sales network to expand our portfolio of customers in the
field of energy products and energy transition services and invest in renewable electricity
production;
x Serbia, where we will increase our share in the energy product sales market.
We will work to remain the first choice for energy transition projects in the region by offering
integrated services with high added value. We will develop and strengthen our presence in
the supply and sale of natural gas and electricity, in the sale of liquefied petroleum gas and in
energy efficiency projects. Renewable electricity production, where we will position ourselves
to become a major supplier in SE Europe, plays a particular role in the energy transition.
The development of new solutions in the field of electromobility and mobility services
represents an important pillar of Petrol’s sustainable and innovative business. In the mobility
segment, the Petrol Group focuses on charging infrastructure (the establishment, management
and maintenance of charging infrastructure for electric vehicles and the provision of charging
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22
services) and mobility services (e.g. operating leasing, fleet electrification and fleet
management services).
The strategic objectives for 2025 are as follows:
x sales revenue of EUR 4.7 billion (the 2025 sales revenue figures rely on the assumption
that energy product prices will match the levels used in the plans for 2021);
x EBITDA of EUR 336 million;
x net debt / EBITDA less than 1;
x net profit of EUR 180 million;
x investments in fixed assets in the 2021 - 2025 period in the total amount of EUR 698
million, of which 35 percent is in energy transformation, and the remaining funds mainly
in the expansion and upgrade of the retail network and the digitalisation of operations;
x renewable electricity production output of 160 MW;
x retail network with a total of 627 service stations;
x 1,575 charging points for electric vehicles;
x energy savings of 73 GWh for end-customers in the 2021 2025 period.
The financial projections take into account the impact of the COVID-19 epidemic in the first
quarter of 2021 and assume that the vaccination coverage of the population would be achieved
by mid-2021, which has not been met. In accordance with the projections of international
financial institutions, economic recovery after the epidemic is expected to be V-shaped.
By achieving the goals, we will strengthen the long-term financial stability of the Petrol
Group. Through a stable dividend policy, we will ensure a balanced dividend yield for
shareholders and the use of free cash flows to finance the Petrol Group’s investment plans.
This will allow for the long-term growth and development of the Group, maximising its value
for the owners. The dividend policy target for the 2021 2025 strategic period is 50 percent of
the Group's net profit, taking into account the investment cycle, Group indicators and the
achieved objectives.
6.3 Transformation of the Organisation
In the light of the changes brought by the new Petrol Group Strategy 2021 2025, the
Management Board of Petrol adopted a new organisation of the Company and the Petrol
Group on 1 June 2021. We undertook the reorganisation to achieve the strategic goals and
place it in the context of a broader energy transition in line with the new vision of the Company.
The central transformation of the organisation was reflected in the way it operates, which has
since taken place through unified and centralised work processes and procedures according
to the principle of functional responsibility from the parent company. With the new organisation,
we introduced clearly defined processes, administrators and roles for effective operation,
strengthened cooperation and enabled greater flexibility and agility. With clearly defined
responsibilities, processes are more efficient, work procedures are unified and more
centralised, and thus specialisation is increased.
By focusing on processes, we strengthen the connections and cooperation between
organisational units. By unifying and centralising the operation of support functions, we want
to ensure a high level of service and productivity. In the management of subsidiaries, we
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23
strengthen our cooperation in the Group, with the aim of ensuring a uniform presence in the
markets and a positive impact on our business performance.
By separating sales from products, we strengthen the focus of sales on the customer, who is
placed at the centre of our operations. An excellent user experience is ensured by product
managers who are focused on ensuring product profitability.
6.4 Petrol as the ambassador of corporate integrity
Petrol meets its targets while complying with applicable regulations and the Corporate Integrity
Guidelines. In the pursuit of our work, we abide by high standards of business ethics and build
a corporate culture promoting lawful, transparent and ethical conduct and decision-making by
all staff. We raise and consolidate the awareness of how important compliance is among
employees and business partners. We apply the zero-tolerance principle to the unlawful and
unethical conduct of employees and business partners.
HIGHLIGHTS:
x As a partner to industry, public sector and households, Petrol is assuming a leading role
in achieving the environmental goals.
x We strive to be the first choice for energy transition projects in the region by offering
integrated services with high added value.
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7. Plans for 2022
7.1 Business environment
In 2021, despite the continuation of the epidemic, we witnessed stable economic growth,
which was accompanied by high growth in the prices of energy products. Countries have
tried to ease the pressure on sales prices through various regulatory measures. Measures to
contain the pandemic have become less restrictive on mobility and the economy. However,
given the deteriorating epidemiological situation, the enforcement of the RVT condition for the
performance of most activities has resulted in fewer visits to our points of sale and thus a
decrease in the sale of merchandise.
The environment in which the Petrol Group operates is facing important changes. The energy
transition towards a low-carbon company and the development of new technologies are
transforming the established ways how energy products are produced, sold and used. On the
one hand, they have to deal with an extremely difficult systemic transition to renewable supply
sources, while on the other, a considerable shift can be observed in the behaviour of end-
customers, who are becoming increasingly engaged and environmentally conscious. As one
of the main energy companies in Slovenia and in SE Europe, the Petrol Group took on an
active role in increasing energy independence, energy efficiency and the share of renewables
and will continue its efforts to reduce its carbon footprint in 2022.
The sales of merchandise and services make up an important part of the Group's revenue,
which is why the situation in the trade sector has a major impact on operations. The
digitalisation of operations is changing the expectations and purchasing patterns of
consumers and sales channels. The pandemic has further highlighted the need to reduce and
control costs and to optimise supply and sales chains, thereby ensuring point-of-sale
profitability.
Providing a full range of customer-focused products and services together with an excellent
shopping experience is at the heart of Petrol's operations. As we try to approach our customers
in innovative ways, we also change and enhance our internal operating processes which
enable us to develop new services and sustainable models.
7.2 Strategic orientations and assumptions
In our annual business planning, we take into account the sustainable orientation of the
Petrol Group, which is built in three directions:
1. Low-carbon energy company focusing on a more sustainable energy portfolio and
mobility, own production of renewable electricity, energy efficiency and reducing the carbon
footprint.
2. Partners with employees and the social environment focusing on boosting corporate
integrity, providing for healthy working conditions and employee satisfaction, with the
support for the wider community in all markets where the Petrol Group operates (support
for humanitarian, cultural, sports and environmental projects) also having a prominent role.
3. Circular economy focusing on involvement in wastewater treatment, recycling of
carwash water and re-use of industrial wastewater. Particular attention is paid to reducing
or replacing raw materials used in packaging with recycled and biodegradable materials.
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At the beginning of 2021, the Petrol Group adopted a new strategy for the 2021 2025
period, in which we committed ourselves to the transition to green energy and devoted a large
share of our investments to this. While co-creating opportunities brought about by the energy
transition we continue to supply the market with hydrocarbons. The new strategy of the Petrol
Group defines clear targets for implementing our vision to become an integrated partner in the
energy transition, offering an excellent user experience. This helps us focus on our principal
activity, which is to supply energy products, as it is this area where we still see great potential
in connection with the energy transformation.
Meeting the strategic goals also led to the preparation of the 2022 plan. It is set with cautious
optimism. Despite the development of the vaccine, there is still much uncertainty about the
further course of the pandemic. We assume that measures to mitigate the pandemic in 2022
will no longer restrict mobility and that consumer behaviour will return to normal after the
abolition of the RVT condition. In 2021 we witnessed stable economic growth in all Petrol
Group markets, but the year was accompanied by a high growth in the prices of energy
products and the related re-regulation of the prices of certain petroleum products in Slovenia
and Croatia, which are the main sales markets of the Petrol Group. In the 2022 plan, we
anticipate that the growth of prices of energy products will decline and that countries will
stimulate economic activity and consumption levels through various measures.
The acquisition of Crodux Derivati Dva d.o.o. in October 2021, which is the largest transaction
of Petrol d.d., Ljubljana in the past 10 years, represents the most significant one-time increase
in the number of points of sale in the Petrol Group's history. The successful integration of
the company and the realisation of the set synergies in 2022 will significantly contribute to the
future growth of the Petrol Group in the markets of SE Europe.
In the Petrol Group, we realise that despite careful preparation, informed business decisions,
a rapid response to changes and an efficient risk management system, external factors may
arise in the business environment that are beyond our control and that may pose a risk or a
threat when it comes to meeting our targets. We are witnessing this during the COVID-19
pandemic.
The main risk to achieving the set plan in 2022 is the negative effects of the energy crisis on
inflation and consequently on the growth of costs of living and the management of higher
operating costs.
The 2022 plans do not take into account any new acquisitions.
7.3 Business targets for 2022
The Petrol Group's main business targets for 2022 are:
x sales revenue of EUR 5.9 billion;
x adjusted gross profit of EUR 643.9 million;
x EBITDA of EUR 297.8 million;
x net profit of EUR 158.3 million;
x net debt to EBITDA ratio of 1.6;
x 3.6 million tons of petroleum products sold;
x 162.4 thousand tons of LPG sold;
x 24.2 TWh of natural gas sold;
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26
x revenue from merchandise sales of EUR532.2 million.
The Group's investment policy for 2022 will be focused on expanding the business in the
area of renewable electricity production, on consolidating its position and strengthening energy
product sales and on expanding its operations in the area of energy and environmental
solutions. We will allocate up to EUR 100 million in 2022 for further development, of which
more than half will be for energy transition projects.
The Petrol Group was in a very good business and financial condition before the pandemic.
In 2022, we will continue to meet high standards of operation as recognised in the ratings from
Standard & Poor's Rating Services. Despite the difficult business conditions, the Group will
continue to pursue its objective of ensuring stable operations, thus delivering a consistent
return for shareholders.
HIGHLIGHTS:
x Energy transition and the development of new technologies are transforming established
ways how energy products are produced, sold and used.
x The plan for 2022 is set with cautious optimism.
x More than half of the investments in 2022 will be allocated for energy transition projects.
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8. Corporate governance statement and Statement of compliance
with the Code
Pursuant to Article 70(5) of the Companies Act (ZGD-1), Petrol d.d., Ljubljana hereby issues
its Corporate governance statement.
8.1 Reference to the applicable Corporate Governance Code
In the period from 1 January 2021 to 31 December 2021, the Company was bound by the
Slovenian Corporate Governance Code for Listed Companies (hereinafter ’the Code') as jointly
drawn up and adopted by the Ljubljana Stock Exchange and the Slovenian Directors’
Association on 27 October 2016. The Code entered into force on 1 January 2017. It is available
in Slovene and English from the website of the Ljubljana Stock exchange at https://ljse.si/. The
Company has not adopted a corporate governance code of its own. It is managed in
accordance with the Companies Act and within the framework of the above Code. In
compliance with the recommendations of the applicable Code, the Supervisory Board and the
Management Board drew up and, at the Supervisory Board meeting of 23 November 2010,
adopted the Corporate Governance Policy of Petrol d.d., Ljubljana, which was published via
the Ljubljana Stock Exchange SEOnet information system on 28 December 2010. The policy
was updated at the Supervisory Board meetings of 12 December 2013, 11 December 2014,
15 December 2016, 14 December 2017, 13 December 2018, 12 December 2019, 28 January
2021 and 17 February 2022, and published on 23 December 2013, 13 January 2015, 23
December 2016, 29 December 2017, 31 December 2018, 31 December 2019, 24 February
2021 and 18 February 2022 via the Ljubljana Stock Exchange SEOnet information system.
The latest valid version is available at Corporate Governance Policy of 17 February 2022. It is
also available, in Slovene and English, on the website of Petrol d.d., Ljubljana
(https://www.petrol.si/).
Statement of compliance with the Code
The Company conducts its operations in compliance with the Code, i.e. both with its guiding
principles and recommendations. Any deviations or partial deviations from the Code are listed
and explained below:
x The Company is yet to perform an external assessment of the adequacy of the corporate
governance statement, but this is expected to be performed in 2022 (the Code: Corporate
Governance Statement and Statement of Compliance with the Code, paragraph 5.7).
x The Supervisory Board does not specify in the Rules of Procedure the exact set of contents
and deadlines that are regularly observed by the Management Board, as the contents are
already provided for in the Company's annual financial calendar. Instead, in addition to the
Financial Calendar, which is published on SEOnet, the Supervisory Board adopts an
extended version of the calendar comprising additional topics and timeframes applicable
to the Supervisory Board and its committees and, as such, representing a coherent and
comprehensive working plan of this body (the Code: Supervisory Board's Tasks, first
sentence of paragraph 12.3).
x Due to a high degree of data confidentiality and to ensure a higher standard of
communication with Supervisory Board members, information technology is seldom used
to convene meetings and distribute Supervisory Board documents. This will be introduced
as soon as all members of the Supervisory Board and its committees are equipped with
sufficiently secure connections and protocols to prevent unauthorised access to
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documents and, where necessary or desirable, to securely provide themselves with printed
documents (the Code: Supervisory Board's Tasks, paragraph 12.5).
x The Human Resources and Management Board Evaluation Committee performs all of its
tasks as decided by the Supervisory Board on a case-by-case basis, therefore the
Supervisory Board did not specify its tasks in its formation (the Code: Supervisory Board
Committees, first sentence of paragraph 18.2).
x The Company provides prompt information about its financial and legal situation through
public announcements, but it does not report on operational estimates as this is
inconsequential as long as its operations are in line with the applicable strategy and annual
work programme. In the event of deviations, the Company would immediately make a
public announcement to inform interested stakeholders about other business events,
impacts and deviations (the Code: Public Announcement of Important Information, indent
3 of paragraph 29.1).
x The Company has not published the applicable wording of the rules of procedure of its
bodies on its website. The Management Board and the Supervisory Board discussed the
benefits of this recommendation and view the Supervisory Board's Rules of Procedure and
the Management Board's Rules of Procedures as texts that are updated on a regular basis
and are intended for the sole use of these bodies. Moreover, any external assessment of
these documents by third parties would have been inappropriate due to their not being
familiar with the needs of these bodies. The General Meeting Rules of Procedure were
adopted at the first general meeting of the joint-stock company Petrol d.d., Ljubljana in
1997. They are always available during the general meeting and do not contradict the
Companies Act, which lays down, through peremptory provisions, all elements concerning
the running of a general meeting, making it sufficient to have the rules of procedure
available only during each general meeting (the Code: Public Announcement of Important
Information, paragraph 29.9).
8.2 Description of the main characteristics of the Companys internal control and risk
management systems in connection with the financial reporting process
The Company's management is responsible for the keeping of proper books of account, setting
up and ensuring the functioning of internal controls and internal accounting
control, selecting and applying accounting policies and safeguarding the Company's assets.
The establishment of the internal control system, which is based on the three lines
1
of defence
model, pursues the following three objectives:
x the accuracy, reliability and completeness of financial records, and true and fair financial
reporting,
x compliance with applicable laws and regulations; and
x the effectiveness and efficiency of operations.
The Company's management aims to establish a control system that is both as efficient as
possible at the prevention of undesired events and acceptable in terms of cost. It is aware that
every internal control system, regardless of how well it functions, has its limitations and cannot
fully prevent errors or frauds. Nevertheless, it must be configured so that it flags them as soon
1
The three lines of defence: (1) operational management or risk owners, (2) control functions, including compliance,
as risk managers, (3) internal audit tasked with providing independent assurance.
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as possible and provides management with suitable assurance about the achievement of
objectives.
Petrol, therefore, keeps and further improves:
x a transparent organisational structure of the parent company and the Group;
x clear and uniform accounting policies and their consistent application across the
Petrol Group;
x an efficiently organised accounting function (functional responsibility) within individual
companies and the Petrol Group;
x a uniform accounting and business information system of the parent company and its
subsidiaries, thus boosting the efficiency of operational and control procedures;
x reporting in accordance with International Financial Reporting Standards, including all
disclosures and notes that are required;
x regular internal and external audits of business processes and operations.
The Risk Management chapter of this business report presents risk management and control
mechanisms relating to the assessment of specific types of risk in greater detail. It is our
opinion that in 2021 the existing internal control system of Petrol d.d., Ljubljana and of the
Petrol Group allowed for the efficient and successful achievement of business objectives,
operation in compliance with the law, and fair and transparent reporting in all material respects.
8.3 Data pursuant to Article 70(6) of the Companies Act-1
As a company bound by the Takeovers Act, Petrol d.d., Ljubljana hereby provides
information on the situation as at the last day of the financial year and all the necessary
explanations, in accordance with Article 70(6) of the Companies Act:
8.3.1 Structure of the Company’s share capital
The Company has issued only ordinary registered no-par value shares, the holders of which
have the right to participate in the management of the Company, the right to profit participation
(dividends) and the right to a corresponding share in other assets in the event of the liquidation
or bankruptcy of the Company. All shares belong to a single class and are issued in book-entry
form.
Share capital structure of Petrol d.d., Ljubljana as at 31 December 2021
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The largest shareholders of Petrol d.d., Ljubljana, as at 31 December 2021
8.3.2 Restrictions on the transfer of shares
All shares are fully transferable.
8.3.3 Qualifying holdings under the Takeovers Act
Pursuant to Article 77(1) of the Takeovers Act (acquiring a qualifying holding), the following
information is provided (valid as at 31 December 2021):
x Clearstream Banking SA. - client account held 287,012 shares of the issuer Petrol d.d.,
Ljubljana, representing 13.76 percent of the share capital of the issuer;
x Slovenian Sovereign Holding held 264,516 shares of Petrol d.d., Ljubljana, representing
12.68 percent of the issuer’s share capital;
x The Republic of Slovenia held 225,699 shares of Petrol d.d., Ljubljana, representing 10.82
percent of the issuer’s share capital;
x Kapitalska družba, d.d. held 172,639 shares of Petrol d.d., Ljubljana, representing 8.27
percent of the issuer’s share capital; and
x OTP Banka d.d. Client account held 142,159 shares of the issuer Petrol d.d., Ljubljana,
representing 6.81 percent of the share capital of the issuer.
8.3.4 Holders of securities carrying special control rights
The Company did not issue any securities carrying special control rights.
8.3.5 Employee share scheme
The Company has no employee share schemes.
8.3.6 Restrictions on voting rights
There are no restrictions on voting rights.
8.3.7 Shareholder agreements potentially resulting in restrictions on the transfer of
shares or voting rights
The Company is not aware of such agreements.
8.3.8 The Company’s rules regarding
x Appointment and replacement of members of management or supervisory bodies
The president and other members of the Management Board are appointed and discharged
by the Supervisory Board. Apart from the worker director, the Supervisory Board appoints
Management Board members on the proposal of the president of the Management Board.
Shareholder Address Number of shares Holding in %
Clearstream Banking SA - fiduciary account
42 Avenue J. F. Kennedy, L-1855, Luxembourg 287,012
13.76%
Slovene Sovereign Holding, d.d.
Mala ulica 5, 1000 Ljubljana 264,516 12.68%
Republic of Slovenia
Gregorčičeva ulica 20, 1000 Ljubljana 225,699
10.82%
Kapitalska družba, d.d.
Dunajska cesta 119, 1000 Ljubljana 172,639 8.27%
OTP banka d.d. - Client account - fiduciary
Domovinskog rata 61, 21000 Split, Croatia 142,159
6.81%
Vizija Holding, d.o.o.
Dunajska cesta 156, 1000 Ljubljana 71,676 3.44%
Vizija Holding Ena, d.o.o.
Dunajska cesta 156, 1000 Ljubljana 66,572 3.19%
Perspektiva FT d.o.o.
Dunajska cesta 156, 1000 Ljubljana 36,262
1.74%
Unicredit Bank Hungary ZRT. - fiduciary
Szabadsag Ter 5 - 6, 1054 Budapest, Hungary
30,989 1.49%
Nova KBM d.d. Ulica Vita Kraigherja 4, 2000 Maribor 25,985 1.25%
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Management Board members are appointed for a five-year term of office and may be re-
appointed. On the proposal of the Human Resources and Management Board Evaluation
Committee and according to its Rules of Procedure, the Supervisory Board determines general
and specific criteria for selecting candidates for the president and members of the
Management Board, at the same time laying down a framework for contracts concluded with
Management Board members. The Supervisory Board also determines the weight of individual
criteria that comprise the competence model of the president and members of the
Management Board. The Human Resources and Management Board Evaluation Committee
proposes to the Supervisory Board which method or a combination of methods to apply in
order to find candidates for the president of the Management Board (personal invitations, job
vacancy postings) and determines whether it is necessary to engage an external headhunting
expert. The Human Resources and Management Board Evaluation Committee carefully
checks the fulfilment of general and specific conditions required for the post of Management
Board president or member and other conditions laid down in the Company's Articles of
Association. The Committee also verifies the references stated in candidates’ CVs, and
conducts interviews. It then puts together a selection of candidates for the president of the
Management Board, conducts selection interviews and ranks them. Short-listed candidate or
candidates for the president of the Management Board propose other Management Board
members, with the Committee then checking the conditions and references of the proposed
candidates. The Committee thereupon proceeds with the evaluation of the entire Management
Board and negotiates with candidates the basic elements of their contracts. The candidate or
candidates for the president of the Management Board and the proposed Management Board
members together present the vision of the Company's development at a Supervisory Board
meeting. The Supervisory Board conducts selection interviews with them. The Supervisory
Board selects and appoints the president and members of the Management Board. If the
Supervisory Board finds the candidates proposed by the candidate for the president of the
Management Board (the proposed Management Board as a whole) unsuitable, the procedure
is repeated.
The Supervisory Board may reappoint the Management Board within one year before the term
of office has expired, but it is customary for the reappointment to take place not later than three
months before the expiry. If the Company’s General Meeting passes a vote of no confidence
in the Management Board, the Supervisory Board, convening immediately after the General
Meeting, states its opinion concerning the recall of a Management Board member. If the
General Meeting does not grant the Management Board and/or Supervisory Board discharge
from liability, the Supervisory Board is required to convene as soon as possible to identify the
reasons for the discharge of liability not being granted. Without prejudice to the above, the
Supervisory Board may recall the Management Board, for reasons stipulated by law, on its
own discretion. The Supervisory Board is required to immediately notify the Management
Board not fully fulfilling the tasks falling under its mandate of its findings and opinions and to
set the shortest deadline possible to eliminate the identified shortcomings. If the Management
Board fails to achieve the expected results by the set deadline, the Supervisory Board decides
whether to recall individual members of the Management Board. The Supervisory Board may
appoint one of its members as a temporary Management Board member to replace a missing
or absent member of the Management Board for a period of not more than a year.
Reappointment or extension of the term of office is permitted if the entire term of office is not
extended by more than one year.
The Supervisory Board of the Company comprises nine members, of which six are elected by
the Company’s General Meeting with a majority vote of shareholders present and three by the
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Company Workers’ Council. They are elected for a term of four years and may be re-elected
when their term of office expires. A resolution on an early recall of the Supervisory Board
members representing shareholders shall be adopted with a three-quarters majority of votes
present at the General Meeting, while the conditions for the recall of the Supervisory Board
members representing employees shall be determined by the Workers’ Council in a general
act.
x The Diversity Policy
At its 21
st
meeting of 13 December 2018, the Supervisory Board adopted the Diversity Policy
Regarding Representation in the Company's Management and Supervisory Bodies. On 31
December 2018, it was published in Slovene and English on the Company's website (the full
text of the Diversity Policy, including its goals and method of implementation, is available at
Politika raznolikosti in Slovene and at The Diversity Policy).
The aim of the Diversity Policy is to ensure the composition of the Management Board and the
Supervisory Board in such a way that each body is provided with a suitable set of skills,
expertise and experience to ensure a good understanding of current events and long-term
risks and opportunities related to the Company's operations and thus ensure the long-term
successful and sustainable operation of the Company. According to the analysis of the long-
term trends in energy and trade and related services (taking into account political-legal,
economic, socio-cultural and demographic, technological and natural and industry forces), the
following aspects of diversity are essential for efficient and sustainable operations: professional
diversity, professional experience, diversity of competences, as well as gender diversity, age
diversity and ensuring continuity.
Complementarity and diversity must be achieved through the composition of the Management
Board and the Supervisory Board, which is reflected in:
x different experience, age, gender, education and professional knowledge at the level of
individual members of the Management Board or the Supervisory Board and consequently
at the level of the Management Board or the Supervisory Board as a whole;
x knowledge of the industry and the characteristics of the legal and regulatory environment;
and
x appropriate manner of communication, cooperation and critical assessment in the
decision-making process of the Management Board or Supervisory Board.
With its Diversity Policy, the Company has set itself, in particular, the following goals:
x ensuring at least 30 percent representation of the underrepresented gender among the
shareholder representatives in the Supervisory Board by 2022;
x efforts of all stakeholders in the personnel processes of appointing the Management Board
to achieve the greatest possible gender balance in such a way as to create an appropriate
set of candidates that takes into account the appropriate representation of the
underrepresented gender;
x striving not to change the overall composition of the Supervisory Board, with the aim of
one-third continuity.
The Diversity Policy is adequately implemented through the process of the recruitment and
selection of candidates for members of the Supervisory Board and Management Board. The
policy administrator is the Human Resources and Management Board Evaluation Committee
of the Management Board, which monitors its implementation and reports to the Supervisory
Board. It is used mainly in activities such as the pooling, selection and proposal of candidates
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for the Supervisory Board to the General Meeting, when appointing members of the
Management Board and committees of the Supervisory Board and when conducting self-
assessment of the Supervisory Board.
For the most part, policy objectives have been adequately achieved, in particular those relating
to the diversity of education, occupation, experience and age. However, the diversity goals
related to gender diversity have been partially achieved. On 25 October 2019, the current
President of the Supervisory Board, Nada Drobne Popović, took over the management of the
Management Board, and on that day the gender differences in both the Supervisory Board and
the Management Board changed significantly. The Management Board was initially headed by
three women and the Supervisory Board by men. Throughout 2020, both the composition of
the Management Board and of the Supervisory Board were marked by considerable dynamics.
Since then, the Management Board throughout 2020 comprised three women, then two
women and two men, later three men and two women, and at the end of the year, when the
Management Board was complete, it comprised one woman out of five members. In 2021,
there were no changes in the composition of the Management Board and it thus comprises a
president and four male members of the Management Board. However, only men (7 or 8 men)
sat on the Supervisory Board in various compositions. At the end of 2020, the Supervisory
Board carried out the personnel process to select candidates for members of the Supervisory
Board but did not propose to the General Meeting to nominate any women, which is not in line
with the Diversity Policy of the Management Board and the Supervisory Board of Petrol d.d.,
Ljubljana, which stipulates gender diversity as one of the six important aspects of diversity, but
this is due to the fact that a significantly lower number of women applied for the position of
members of the Supervisory Board. In addition, at the end of 2020, no female workers’
representatives were appointed by the Workers’ Council to the Supervisory Board for the terms
of office beginning in 2021. The Workers’ Council also proposed to the Supervisory Board the
appointment of a male Worker Director, whose term of office started on 11 December 2020. In
the energy sector, women’s representation in management positions is found to be low. At the
32
nd
General Meeting, it was voted based on a counter-proposal that after 11 April 2021,
the Supervisory Board membership will comprise eight men and one woman. After the
resignation of one of the elected members, another man was elected as a new member of the
Supervisory Board at the 33
rd
General Meeting. Following the new composition, the
Supervisory Board comprises eight men and one woman. In 2019, the Supervisory Board
joined the initiative to achieve voluntary 40/30 gender diversity by 2026 as proposed by the
Slovenian Directors’ Association. Among other partners, the initiative was also supported by
the Slovenian Sovereign Holding and the Ljubljana Stock Exchange. The initiative contains the
following commitment to achieve the voluntary gender diversity target by the end of 2026: 40
percent of members of supervisory boards and, jointly, 33 percent of members of the
supervisory and management boards of listed companies and publicly owned companies shall
be of the less represented gender. However, the core commitments given in said initiative were
not fulfilled and only one woman was nominated for appointment. Given that the members of
the Supervisory Board have been appointed for a four-year term and the members of the
Management Board for a five-year term in 2020, no major changes in gender diversity are
expected in the coming years.
x Amendments to the Articles of Association
The General Meeting decides on amendments to the Articles of Association with a majority of
three-quarters of the share capital represented in the voting.
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8.3.9 The powers of Management Board members, particularly in connection with own
shares
The Management Board has not been authorised by the General Meeting to acquire own
shares.
8.3.10 Important agreements that enter into force, are amended or expire due to changes
in the control over the Company resulting from a takeover bid
The Company is not aware of such agreements.
8.3.11 Agreements between the Company and the members of its management and
supervisory bodies or employees that foresee compensation should such persons
resign, be discharged without cause or have their employment relationship terminated
due to a bid as defined in the Takeovers Act
In the event of resignation, Management Board members are not entitled to compensation, but
they are entitled to it if the Company recalls them or terminates their employment contract
without cause.
8.3.12 Petrol d.d., Ljubljana has no subsidiaries falling within the scope of indent 4 of
Article 70(3) of the Companies Act (ZGD-1).
8.3.13 The Petrol Group's activities include an activity listed in Article 70 b of the
Companies Act, specifically commercial exploitation of mineral resources (geothermal
source), but the payments to the Republic of Slovenia did not exceed the amount laid
down in Paragraph 2 of Article 70 b in 2021.
8.4. Information on the workings of the General Meeting
As provided by the applicable legislation, specifically the Companies Act, the General Meeting
is a body through which shareholders exercise their rights in respect of matters concerning the
Company. The convening of General Meetings is governed by the Articles of Association, in
conformity with applicable legislation. The General Meeting is convened at the request of the
Management Board, at the request of the Supervisory Board, or at the request of the
Company’s shareholders who collectively represent at least five percent of the Company’s
share capital. The beneficiary requesting the convening of the General Meeting must enclose
the agenda, a proposal for a resolution for each proposed agenda item to be decided by the
General Meeting or, if the General Meeting does not adopt a decision on an individual agenda
item, the reasoning of the agenda item. Notwithstanding, the General Meeting of the Company
with the content required by regulations may also be convened by registered letter to all
shareholders if their names and addresses can be established from the valid share register. In
this case, the day on which the letter was sent shall be considered as the date of publication
of the General Meeting.
The Management Board calls a General Meeting of the Company's shareholders 30 days
before the meeting takes place by publishing a notice via the Ljubljana Stock Exchange
SEOnet information system, the AJPES website and the Company's website. In the notice of
the General Meeting, the Management Board specifies the time and place of the meeting, the
bodies conducting the meeting, the agenda and proposed resolutions of the General Meeting
and other information required by applicable law.
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At the 33
rd
General Meeting held on 22 April 2021 (33
rd
General Meeting), the Company’s
shareholders were presented with the Annual report and the Supervisory Board’s report on the
verification of the Annual report for the financial year 2020, as well as with the remuneration of
the members of the management and supervisory bodies. They discussed and adopted a
resolution on the allocation of accumulated profit and the granting of discharge from liability to
the Management Board and the Supervisory Board for the year 2020. They were briefed on
the report of the Management Board on the activities carried out in connection with the findings
of the report to the shareholders on the special audit, based on Resolution No. 2.3., adopted
at the 32
nd
General Meeting on 28 December 2020. They adopted a resolution on the
remuneration of members of the Supervisory Board and got acquainted with the new members
of the Supervisory Board - employee representatives and the resignation statement of Branko
Braček dated 25 March 2021 on irrevocable resignation from the position of a member of the
Supervisory Board of Petrol d.d. and elected a new member of the Supervisory Board of Petrol
d.d., Ljubljana, Janez Žlak, with the beginning of the term of office on 22 April 2021.
8.5. Information on the composition and workings of management and supervisory
bodies
Petrol d.d., Ljubljana is managed using a two-tier system. The Company is led by the
Management Board, which is supervised by the Supervisory Board. The management of Petrol
d.d., Ljubljana is conducted in conformity with the law, the Articles of Association as the
Company’s fundamental legal act, internal regulations, and established and generally
accepted good business practices.
Workings of the Management Board
The Management Board of Petrol d.d., Ljubljana manages the Company independently and
on its own responsibility. The Management Board represents and acts on behalf of the
Company. According to the Company's Articles of Association, the Management Board
comprises the president of the Management Board and other members of the Management
Board. The total number of members of the Management Board shall be a minimum of three
and a maximum of six. The exact number of Management Board members, their sphere of
duties and their powers are determined by a resolution adopted by the Supervisory Board at
the proposal of the president of the Management Board. One of the Management Board
members is always a worker director, who only participates in decisions relating to human
resources and social policy matters. From 27 August 2020, the Management Board functions
with five members. The Management Board discussed matters falling within its competence at
80 meetings in 2021. All decisions were adopted unanimously. In addition to holding formal
meetings, the Management Board exercised the powers and responsibilities pertaining to its
daily activities and to the General Meeting, as stipulated by the Companies Act and the Articles
of Association. The activities concerning the Supervisory Board were carried out in accordance
with the provisions of the Supervisory Board Rules of Procedure and the Articles of
Association. The Management Board regularly reported to the Supervisory Board on the
Company’s operations and consulted it in connection with the Company’s strategy, business
development and risk management. Some of the Management Board’s activities were also
focused on collaboration with the Workers’ Council and the representative trade union.
Management Board members are appointed for a five-year term of office and may be re-
appointed. The Company is represented jointly by the president and a member of the
Management Board. If a power of procuration is granted by the Company, the holder can
represent the Company only together with the president of the Management Board. The
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Company's Management Board is required to seek the consent of the Supervisory Board for
the conclusion of the following transactions:
x transactions on the basis of which the Company acquires or disposes of its own shares;
x transactions exceeding EUR 1,000,000.00 on the basis of which the Company acquires or
disposes of interests in or shares of companies, whereby, in order to avoid doubt,
transactions related to the acquisition of interests or shares also include transactions
related to the Company's participation in the capital increase of another company;
x transactions on the basis of which the Company establishes or terminates any company
and/or business unit;
x transactions on the basis of which the Company borrows or approves a loan exceeding
EUR 2,000,000.00, except for such transactions concluded between the Company and its
subsidiaries and the borrowing operations of the Company in amounts as included in the
Company's borrowing plan, which is approved by the Supervisory Board of the Company.
For the avoidance of doubt, a series of several consecutive loans taken out by the
Company from the same lender or granted by the Company to the same borrower shall be
considered as a single loan, whereby related companies in the sense of the provision of
Article 527 of the Companies Act shall also be considered the same lender or borrower;
x individual purchases or sales of the non-current intangible, tangible fixed assets and
investment property of the Company, for the amount exceeding EUR 5,000,000.00. For
the avoidance of doubt, a set of several interconnected transactions shall also be
considered as a single transaction, in particular insofar as they represent a single
investment or are part of a single investment programme;
x transactions on the basis of which the Company (a) establishes a mortgage, building right
or any other encumbrance on immovable property owned by the Company, with the
exception of transactions establishing (quasi or true) real easements (i) to the benefit of
public and private operators for the purpose of servicing the Company’s immovable
property or (ii) to the benefit of the state or a municipality or of a public service operator; or
(b) establishes a lien or otherwise encumbers other fixed assets or intangible assets of the
Company;
x granting a power of procuration;
x other transactions, if so decided by the Supervisory Board of the Company by a decision.
The above also applies, mutatis mutandis, to transactions entered into by subsidiaries in the
course of their operations and in respect of which the consent of the Company's Management
Board must be obtained prior to the conclusion. For most of the above transactions, the
Management Board must seek prior consent from the Supervisory Board before granting any
consent requested by the management of any of its subsidiaries.
In 2021 there were no changes in the composition of the Management Board of Petrol d.d.,
Ljubljana.
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37
Members of the Management Board of Petrol d.d., Ljubljana in 2021:
Nada Drobne Popović, President of the Management Board
In the period from 25 October 2019 to 10 February 2020, she managed Petrol d.d., Ljubljana
as the President of the Management Board ad interim (after being appointed from among
Supervisory Board members). On 11 February 2020, she was appointed by the Supervisory
Board as the President of the Management Board for a five-year term of office. Born in 1975,
she holds a Master of Science degree from the School of Government and European Studies,
Brdo pri Kranju.
Fields of responsibility:
From 18 December 2020 to 20 May 2021:
x Human resources, processes and general administration
x Petroleum products and logistics
x Procurement
x Legal affairs and support to corporate bodies
x Technical development, quality and safety
x Corporate communication
x Corporate operations control and investigations
x Internal audit
From 21 May 2021 onwards:
x Procurement and trade of petroleum products and energy products
x Procurement of merchandise and products for internal supply
x Human resources, processes and general administration
x Cabinet of the Management Board
x Strategy
x Technical development, quality and safety
x Legal affairs
x Corporate security and control of operations, and
x Internal audit
Matija Bitenc, Member of the Management Board
On 11 March 2020, he was appointed as a Member of the Management Board for a five-year
term of office. Born in 1980, he holds a master's degree in economics.
Fields of responsibility:
From 28 August 2020 to 20 May 2021:
x Finance and accounting
x Back office
x Informatics
x Controlling
x Risk management
x Business intelligence
From 21 May 2021 onwards:
x Finances
x Accounting
x Back office
x Informatics
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x Controlling
x Management of development needs and projects
x Risk management and
x Business intelligence
Jože Bajuk, Member of the Management Board
On 11 March 2020, he was appointed as a Member of the Management Board for a five-year
term of office. Born in 1974, he holds a master's degree in sociology and a bachelor's degree
in law.
Fields of responsibility:
From 18 December 2020 to 20 May 2021:
x Management of energy products and energy
x Energy and environmental systems
x Investments and maintenance
From 21 May 2021 onwards:
x Energy and solutions
x Logistics
x Operational Management
Jože Smolič, Member of the Management Board
He was appointed as a Member of the Management Board for a five-year term of office starting
on 28 August 2020. Born in 1967, he holds a master’s degree in entrepreneurial management.
Fields of responsibility:
From 28 August 2020 to 20 May 2021:
x Sales to end-customers
x Sales to business customers and the public sector
x Marketing
x Development of physical points of sale
From 21 May 2021 onwards:
x Sales to end-customers (B2C)
x Sales to business customers and the public sector (B2B and B2C)
x Digital channels
x Marketing and user experience management
x Fuels and derivatives.
Zoran Gračner, Member of the Management Board and Worker Director
On 11 December 2020, he was appointed by the Supervisory Board as a Member of the
Management Board and Worker Director for a five-year term of office. Born in 1970, he holds
a master's degree in business administration and a bachelor's degree in mechanical
engineering. In accordance with the Articles of Association of Petrol d.d., Ljubljana, the Worker
Director participates in decision-making in connection with issues relating to the formulation of
personnel and social policy.
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Responsibilities and composition of the Supervisory Board
In the two-tier management system, the Supervisory Board of Petrol d.d., Ljubljana performs
the tasks of supervising the conduct of the Company's operations (including the selection and
appointment of the Management Board), tasks related to the powers of the General Meeting
and other statutory tasks.
Under the Company's Articles of Association, the Supervisory Board of Petrol d.d., Ljubljana
comprises nine members. They are elected for a term of four years and may be re-elected
when their term of office expires. The Supervisory Board elects its president and deputy
president from among its members. The president and deputy President of the Supervisory
Board are always shareholder representatives. The president of the Supervisory Board
represents the Company in relation to the Management Board, and the Supervisory Board in
relation to the Management Board and third parties, unless specifically determined otherwise.
The president of the Supervisory Board represents the Company in concluding the contract
with the auditor of the annual report and the consolidated annual report and in relation to the
members of the Supervisory Board.
Members of the Supervisory Board of Petrol d.d., Ljubljana were as follows in 2021:
Sašo Berger, shareholder representative
President of the Supervisory Board until 10 April 2021.
President of the Management Board of S&T Slovenia, d.d. He was appointed for a four-year
term of office beginning on 11 April 2017 at the 27
th
General Meeting of 10 April 2017. He
served as Deputy President of the Supervisory Board from the constituent meeting of 22 April
2017 until 10 February 2020. On 11 February 2020, he became President of the Supervisory
Board. At the end of his four-year term, which expired on 10 April 2021, he ceased to hold
office on the Company's Supervisory Board.
Igo Gruden, shareholder representative
Member of the Supervisory Board until 10 April 2021.
Member of the Management Board of Hranilnica LON d.d., Kranj. He was appointed for a four-
year term of office beginning on 7 April 2013 at the 23
rd
General Meeting of 4 April 2013, and
reappointed at the 27
th
General Meeting of 10 April 2017, with his four-year term of office
beginning on 11 April 2017. On 11 February 2020, he became Deputy President of the
Supervisory Board. At the end of his four-year term, which expired on 10 April 2021, he ceased
to hold office on the Company's Supervisory Board.
Metod Podkrižnik, shareholder representative
Member of the Supervisory Board until 10 April 2021.
Member of the Management Board of Luka Koper d.d. He was appointed for a four-year term
of office beginning on 11 April 2017 at the 27
th
General Meeting of 10 April 2017. At the end of
his four-year term, which expired on 10 April 2021, he ceased to hold office on the Company's
Supervisory Board.
Sergij Goriup, shareholder representative
Member of the Supervisory Board until 10 April 2021.
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Independent attorney. He was appointed for a four-year term of office beginning on 11 April
2017 at the 27
th
General Meeting of 10 April 2017. At the end of his four-year term, which
expired on 10 April 2021, he ceased to hold office on the Company's Supervisory Board.
Janez Pušnik, shareholder representative
Member of the Supervisory Board until 10 April 2021.
He was appointed at the 31
st
General Meeting of 24 July 2020 for the period from 24 July 2020
to 10 April 2021. At the end of that period, he ceased to be a member of the Supervisory Board.
As of April 22, 2021, he is an external member of the Audit Committee.
Janez Žlak, shareholder representative
President of the Supervisory Board from 22 April 2021 onwards.
President of the Management Board of the Slovenian Sovereign Holding. He was appointed
for a four-year term of office beginning on 22 April 2021 at the 33
rd
General Meeting of 22 April
2021. He has been serving as President of the Supervisory Board from the constituent meeting
of 22 April 2021.
Borut Vrviščar, shareholder representative
Deputy President of the Supervisory Board from 22 April 2021 onwards (SB member from 11
April 2021).
General Manager of Kuehne + Nagel, AG, Schindellegi, CH. He was appointed for a four-year
term of office beginning on 11 April 2021 a Supervisory Board member at the 32
nd
General
Meeting of 28 December 2020. He has been serving as Deputy President of the Supervisory
Board from the constituent meeting of 22 April 2021.
Mladen Kaliterna, shareholder representative
Member of the Supervisory Board.
Executive Director of Perspektiva FT d.o.o. Ljubljana. He was appointed for a four-year term
of office beginning on 16 July 2013 at the 23
rd
General Meeting of 4 April 2013, and reappointed
at the 27
th
General Meeting of 10 April 2017, with his four-year term of office beginning on 16
July 2017. He served as Supervisory Board President between 11 April and 21 April 2021. He
was reappointed at the 32
nd
General Meeting of 28 December 2020, with his four-year term of
office beginning on 16 July 2021.
Alenka Urnaut Ropoša, shareholder representative
Member of the Supervisory Board from 11 April 2021 onwards.
Managing Director and founder of Renova real d.o.o. She was appointed for a four-year term
of office beginning on 11 April 2021 at the 32
nd
General Meeting of 28 December 2020.
Mário Selecký, shareholder representative
Member of the Supervisory Board from 11 April 2021 onwards.
Representative of JT Banka, a.s. She was appointed for a four-year term of office beginning
on 11 April 2021 at the 32
nd
General Meeting of 28 December 2020.
Aleksander Zupančič, shareholder representative
Member of the Supervisory Board from 11 April 2021 onwards.
Head of the Cabinet of the Minister of the Republic of Slovenia, Ministry of the Environment
and Spatial Planning. She was appointed for a four-year term of office beginning on 11 April
2021 at the 32
nd
General Meeting of 28 December 2020.
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Alen Mihelčič, employee representative
Member of the Supervisory Board.
Petrol d.d., Ljubljana, Oil Products Sales and Management Director. He was appointed for a
four-year term of office beginning on 22 February 2017 at the 3
rd
Workers’ Council meeting of
27 January 2017. He was reappointed at the 44
th
Workers’ Council meeting of 4 December
2020, with his four-year term of office beginning on 23 February 2021.
Robert Ravnikar, employee representative
Member of the Supervisory Board.
Petrol d.d., Ljubljana, Head of Ljubljana Kranj Retail regional unit. He was appointed for a
four-year term of office beginning on 22 February 2017 at the 3
rd
Workers’ Council meeting of
27 January 2017. He was reappointed at the 44
th
Workers’ Council meeting of 4 December
2020, with his four-year term of office beginning on 23 February 2021.
Marko Šavli, employee representative
Member of the Supervisory Board.
Petrol d.d., Ljubljana, Compliance Manager and Specialist. When Member of the Supervisory
Board Zoran Gračner resigned, Mr Šavli was appointed as substitute member of the
Supervisory Board (employee representative) at the 44
th
Workers’ Council meeting of 4
December 2020, in accordance with provision 10.13 of the Company’s Articles of Association.
His term of office began on 11 December 2020. At the same meeting, he was also appointed
for a four-year term, which he took on 23 February 2021 after the end of his term as a substitute
member.
The Supervisory Board had two standing committees in 2021: the statutory Audit Committee
and the Human Resources and Management Board Evaluation Committee.
The Audit Committee was composed of the following members in 2021:
Until 10 April 2021:
x Mladen Kaliterna, President of the Committee
x Metod Podkrižnik, Member of the Committee
x Marko Šavli, Member of the Committee
x Igo Gruden, Member of the Committee
x Janez Pušnik, Member of the Committee
x Christoph Geymayer, External Member of the Committee
The Audit Committee worked in a limited composition in the period from 11 to 16 April 2021
because the term of office of some members ended:
x Mladen Kaliterna, President of the Committee,
x Marko Šavli, Member of the Committee,
x Christoph Geymayer, External Member of the Committee.
The constituent meeting of the new Supervisory Board was held on 22 April 2021, at which
new members of the Audit Committee were appointed.
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In the period from 22 April 2021 onwards, the Audit Committee has the following
composition:
x Alenka Urnaut Ropoša, President of the Committee
x Mladen Kaliterna, Member of the Committee
x Aleksander Zupančič, Member of the Committee
x Robert Ravnikar, Member of the Committee
x Janez Pušnik, External Member of the Committee
The Human Resources and Management Board Evaluation Committee was composed
of the following members in 2021:
Until 10 April 2021:
x Sergij Goriup, President of the Committee
x Sašo Berger, Member of the Committee
x Igo Gruden, Member of the Committee
x Alen Mihelčič, Member of the Committee
x Robert Ravnikar, Member of the Committee
The constituent meeting of the new Supervisory Board in its new composition was held on 22
April 2021, at which new members of the Human Resources and Management Board
Evaluation Committee were appointed.
In the period from 22 April 2021 onwards, the Human Resources and Management Board
Evaluation Committee has the following composition:
x Borut Vrviščar, President of the Committee
x Janez Žlak, Member of the Committee
x Mário Selecký, Member of the Committee
x Alen Mihelčič, Member of the Committee
x Marko Šavli, Member of the Committe
Remuneration policy for members of management and supervisory bodies
In accordance with the provision of Article 294a of the Companies Act-1, the Company has
established a remuneration policy for management and supervisory bodies, which will be
submitted to the General Meeting for approval at the Company’s 34
th
General Meeting. This
report discloses nominal amounts received in the financial year 2021 by each Management
Board member and each Supervisory Board member, and they are defined in more detail in
the Report on the Remuneration of Management and Supervisory Bodies of Petrol d.d.,
Ljubljana in the financial year 2021, in accordance with the provision of Article 294b of the
Companies Act-1. The information on fixed and variable remuneration and other payments to
the Management Board, as well as the criteria and methods used to determine compliance
with these criteria, are also disclosed for the members of the Management Board. The
remuneration policy in the part relating to the members of the Management Board is proposed
by the Supervisory Board, while the remuneration policy for the Management Board member
who is also the worker director and the legal representative authorised to represent the
Company only together with the president of the Management Board and, in accordance with
a Supervisory Board's resolution, is set in the Workers’ Participation in Management
Agreement concluded by the Management Board and the Workers’ Council on 7 October 1997.
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The variable part of the remuneration of the member of the Management Board who is also
the worker director is adjusted to the applicable multiple of the monthly salary that is
determined by the Supervisory Board for the other members of the Management Board,
meaning that the worker director is paid the same multiple of the average monthly gross salary
of Company employees.
In accordance with the proposal of the Remuneration Policy of the Management and
Supervisory Bodies of Petrol d.d., Ljubljana, other members of the Management Board are
entitled to the following remuneration:
x Remuneration of members of the Management Board consists of a fixed and a variable
part. In addition to the fixed and variable part, members of the Management Board are in
certain cases entitled to severance pay and certain other benefits or rights.
x The fixed part of the remuneration is intended to pay the member of the Management
Board for the performance of their tasks, efforts and responsibilities and is determined to
ensure financial stability, reimbursement for efforts and reflects professional experience
and loyalty and does not depend on business results or other unforeseen factors. The basic
guideline in determining this part of the remuneration is the complexity and responsibility
of the tasks. The fixed part of remuneration is the basic salary of a member of the
Management Board, determined by the employment contract and expressed in a gross
amount. To determine the basic salary, the level of complexity and responsibility of work is
considered, taking into account the size of the company (number of employees, value of
assets and generated net sales revenue) and complexity of operations (organisation,
internationalisation, requirements of the direct economic environment, complexity of key
products, regulation of activities).
x Variable remuneration is based on the performance of the Petrol Group and the
Management Board as a whole. Performance criteria follow transparency, flexibility and
strict adherence. Variable remuneration comprises remuneration according to the fulfilment
of financial and non-financial criteria, which contribute to both the short-term and long-term
performance of the Company. The variable part of remuneration is determined based on
criteria that contribute to the promotion of business strategy, long-term development and
sustainability of the Company. The criteria are known in advance and their fulfilment is
verified by predefined methods. The Management Board also submits a report to the
Supervisory Board on the work of the Management Board no later than when adopting the
audited annual report for the financial year, which, taking into account these Rules,
provides all the necessary bases on which the Supervisory Board can assess the
performance of the Management Board in the financial year and consequently determine
the appropriate amount of variable remuneration.
x Members of the Management Board are also entitled to certain other remuneration:
- premiums for life, accident, disability insurance, voluntary supplementary pension
insurance, liability insurance for damage to the Company or third parties, and health
insurance, under the conditions specified in the employment contract;
- under the same conditions and in the amount as applies to employees of the Company, to
pay for holiday leave, compensation for holiday leave, jubilee awards, the reimbursement
of travel expenses, the reimbursement of expenses for meals during work;
- non-compete clause: within the provisions of the Act governing employment relationships
and under the conditions set out in the employment contract;
- some other benefits appropriate to the position of a member of the Management Board for
the smooth performance of the function;
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x A member of the Management Board is also entitled to severance pay under the conditions
determined by law, the remuneration policy and the employment contract.
The remuneration of the Supervisory Board is determined by the General Meeting of the
Company. At the 33
rd
General Meeting, which was held on 22 April 2021, a resolution was
adopted that laid down the remuneration of Supervisory Board members. The full text of the
resolution is set out in the announcement of the General Meeting resolutions, available at: 33
rd
General Meeting of the Company. The full document of the Remuneration Policy of the
Management and Supervisory Bodies of Petrol d.d., Ljubljana is approved by the General
Meeting.
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APPENDIX C: Composition and remuneration of the Management Board and the
Supervisory Board
C.1: Composition of the Management Board in the financial year 2021
Name
and
Surname
Function
(president,
member)
Area of work in the Management
Board
First
appointment to
the office
Termination
of office/
mandate
Gender Nationality
Year
of
birth
Education
Professional
profile
Membership
of
supervisory
bodies of
non-related
companies
Nada
Drobne
Popović
From 18 December 2020 to 20 May
2021:
• Human resources, processes and
general administration
• Petroleum products and logistics
• Procurement
• Legal affairs and support to corporate
bodies
• Sustainable development, quality and
safety
• Corporate communication
• Corporate operations control and
investigations
• Internal audit.
11 February
2020
25 October
2019 (ad
interim)
10 February
2025
Female Slovene 1975
Master of
Science, School
of Government
and European
Studies, Brdo pri
Kranju
All-round
management
competences,
including
management of
equity investments
/
From 21 May 2021 onwards:
• Procurement and trade of petroleum
products and energy products
• Procurement of merchandise and
products for internal supply
• Human resources, processes and
general administration
• Cabinet of the Management Board
• Strategy
• Sustainable development, quality and
safety
• Legal affairs
• Corporate security and control of
operations, and
• Internal audit.
Matija
Bitenc
Member of the
Management
Board
From 28 August 2020 to 20 May 2021:
• Finance and accounting
• Back office
• Informatics
Controlling
• Risk management
• Business intelligence
11 March 2020 10 March
2025
Male Slovene 1980
Master of
Economics
From 21 May 2021 onwards:
• Finances
• Accounting
• Back office
• Informatics
Controlling
• Management of development needs and
projects
• Risk management and
• Business intelligence
Jože
Bajuk
Member of the
Management
Board
11 March 2020 10 March
2025
Male Slovene 1974
Master of
Sociology,
Bachelor of Law
/
Jože
Smolič
Member of the
Management
Board
From 28 August 2020 to 20 May 2021:
• Sales to end customers
• Sales to business customers and the
public sector
• Marketing
• Development of physical points of sale
From 21 May 2021 onwards:
• Sales to end customers (B2C)
• Sales to business customers and the
public sector (B2B and B2C)
• Digital channels
• Marketing and user experience
management
• Fuels and derivatives.
28 August 2020
27 August
2025
Male Slovene 1967
Master of
Entrepreneurial
Management
Competences in
the area of trade,
marketing, sales
promotions, retail
sales,
development of
new sales
networks and
markets,
development of
new point-of-sale
types and
concepts
/
Zoran
Gračner
Member of the
Management
Board and
Worker
Director
Worker Director, is not responsible for
any area of work. Co-decides on issues
related to the formulation of personnel
and social policy.
11 December
2020
10 December
2025
Male Slovene 1970
Master of
Business
Administration,
Bachelor of
Mechanical
Engineering
Competences in
the area of energy
/
President of
the
Management
Board
Competences in
the area of law,
corporate
governance,
energy (especially
renewables),
electricity trading
and ESCO
projects
Competences in
the area of
corporate finance,
risk management,
business
intelligence and
information
technology
From 18 December 2020 to 20 May
2021:
• Management of energy products and
energy
• Energy and environmental systems
• Investments and maintenance
From 21 May 2021 onwards:
• Energy and solutions
• Logistics
• Operational Management
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C.2: Composition of the Supervisory Board and committees in the financial year 2021,
part 1
Name and
Surname
Function
(president,
deputy
president,
member)
First
appointment to
the office
Termination
of office/
mandate
Shareholder/em
ployee
representative
Attendance at SB
meetings according to
the total number of
meetings
Gender
Nationalit
y
Year
of
birth
Education
Sašo
Berger
President of the
Supervisory Board
until 10 April 2021
11 April 2017
(Member of the
Supervisory
Board), from 10
February 2020
onwards Chairman
of the Supervisory
Board
10 April 2021
Shareholder
representative
Three meetings (out of
three during his term) and
out of a total of ten
meetings in 2021
Male Slovene 1966
Bachelor of
Economics
Igo Gruden
Deputy President
of the Supervisory
Board until 10
April 2021
4 April 2013
(Member of the
Supervisory
Board), from 11
February 2020
onwards Deputy
President of the
Supervisory Board
10 April 2021
Shareholder
representative
Three meetings (out of
three during his term) and
out of a total of ten
meetings in 2021
Male Slovene 1972
Bachelor of
Mechanical
Engineering
Metod
Podkrižnik
Member of the
Supervisory Board
until 10 April 2021
10 April 2017 10 April 2021
Shareholder
representative
Three meetings (out of
three during his term) and
out of a total of ten
meetings in 2021
Male Slovene 1971
Master of
Economics
Sergij
Goriup
Member of the
Supervisory Board
until 10 April 2021
10 April 2017 10 April 2021
Shareholder
representative
Three meetings (out of
three during his term) and
out of a total of ten
meetings in 2021
Male Slovene 1955 Bachelor of Law
Janez
Pušnik
Member of the
Supervisory Board
until 21 April 2021
24 July 2020 10 April 2021
Shareholder
representative
Three meetings (out of
three during his term) and
out of a total of ten
meetings in 2021
Male Slovene 1970
Master of
Management and
Organisation
Janez Žlak
President of the
Supervisory Board
from 22 April 2021
onwards
22 April 2021 21 April 2025
Shareholder
representative
Seven meetings (out of
seven during his term) and
out of a total of ten
meetings in 2021
Male Slovene 1965 PhD
Borut
Vrviščar
Deputy President
of the Supervisory
Board from 22
April 2021
onwards (from 11
April 2021
onwards Member
of the Supervisory
Board)
28 december
2020
10 April 2025
Shareholder
representative
Seven meetings (out of
seven during his term) and
out of a total of ten
meetings in 2021
Male Slovene 1969
Bachelor of
Electronics
Engineering,
Leadership and
strategic
management, Top
management
program
Aleksander
Zupančič
Member of the
Supervisory Board
from 11 April 2021
onwards
28 December
2021
10 April 2025
Shareholder
representative
Seven meetings (out of
seven during his term) and
out of a total of ten
meetings in 2021
Male Slovene 1979 Bachelor of Law
Mladen
Kaliterna
Member of the
Supervisory Board
(in the period from
11 April to 21
April, he was the
President of the
Supervisory
Board)
4 April 2013 15 July 2025
Shareholder
representative
All ten meetings of the
Supervisory Board in 2021
Male Slovene 1967
Master of
Management and
Organisation
Alenka
Urnaut
Ropoša
Member of the
Supervisory Board
28 December
2021
10 April 2025
Shareholder
representative
Seven meetings (out of
seven during her term)
and out of a total of ten
meetings in 2021
Female Slovene 1975
MBA, University
graduate in
economic
engineering
Mário
Selec
Member of the
Supervisory Board
28 December
2021
10 April 2025
Shareholder
representative
Six meetings (out of seven
during his term) and out of
a total of ten in 2021
Male Slovak 1975 Master of Law
Alen
Mihelčič
Member of the
Supervisory Board
27 January 2017
22 February
2025
Employee
representative
All ten meetings in 2021 Male Slovene 1975
Bachelor of
Economics
Robert
Ravnikar
Member of the
Supervisory Board
27 January 2017
22 February
2025
Employee
representative
All ten meetings in 2021 Male Slovene 1979
Bachelor of
Economics
Marko Šavli
Member of the
Supervisory Board
11 December
2020
22 February
2025
Employee
representative
All ten meetings in 2021 Male Slovene 1973 Utility Engineer
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C.2: Composition of the Supervisory Board and committees in the financial year 2021,
part 2
Name and
Surname
Professional
profile
Independence
according to
Article 23 of
the Code
(YES/NO)
Existence of
a conflict of
interest in
the financial
year (YES/NO)
Membership of supervisory
bodies of other companies
Membership of
committees (audit,
HR, remuneration,
etc.)
President/
member
Attendance at committee meetings
according to the total number of
committee meetings
Sašo Berger
Monetary matters,
finance, IT
YES NO /
Human Resources
and Management
Board Evaluation
Committee
Member of the committee
until 10 April 2021
One meeting (out of one meeting
during his term) and out of a total of
four committee meetings in 2021
Igo Gruden
Banking and asset
management
YES NO /
Audit Committee,
Human Resources
and Management
Board Evaluation
Committee
Member of the committees
until 10 April 2021
One meeting of the Committee on
Human Resources and Management
Board Evaluation Committee (out of
one meeting during his term) and out of
a total of four meetings of the
Committee in 2021, and four meetings
of the Audit Committee (out of four
meetings during his term) and out of a
total of ten meetings of the Audit
Committee in 2021
Metod
Podkrižnik
Energy, logistics,
procurement
YES NO / Audit Committee
Member of the committee
until 10 April 2021
Four meetings of the Audit Committee
(out of four meetings during his term)
and out of a total of ten meetings of the
Audit Committee in 2021
Sergij Goriup Attorneyship YES NO
STH VENTURES, družba
tveganega kapitala, d.o.o.,
Ljubljana – President of the
Supervisory Board and Zatvoreni
investicioni Fond sa javnom
ponudom "FORTUNA FOND",
d.d., Cazin – President of the
Supervisory Board
Human Resources
and Management
Board Evaluation
Committee
President of the committee
until 10 April 2021
One meeting (out of one meeting
during his term) and out of a total of
four committee meetings in 2021
Janez Pušnik
Finance,
accounting
YES NO / Audit Committee
Member of the committee
until 21 April 2021
Four meetings of the Audit Committee
(out of four meetings during his term)
and out of a total of ten meetings of the
Audit Committee in 2021
Janez Žlak
General
management and
leadership,
government
investment
management
YES NO /
Human Resources
and Management
Board Evaluation
Committee
Member of the committee
from 22 April 2021
onwards
Three meetings (out of three meetings
during his term) and out of a total of
four meetings of the Commission in
2021
Borut Vrviščar
Logistics,
organisation and
management
YES NO /
Human Resources
and Management
Board Evaluation
Committee
President of the committee
from 22 April 2021
onwards
Three meetings (out of three meetings
during his term) and out of a total of
four meetings of the Commission in
2021
Aleksander
Zupančič
Organisation and
management, law,
psychotherapy and
coaching
YES NO / Audit Committee
Member of the committee
from 22 April 2021
onwards
Six meetings of the Audit Committee
(out of six meetings during his term)
and out of a total of ten meetings of the
Audit Committee in 2021
Mladen
Kaliterna
Investment and
management of
Group companies
YES NO / Audit Committee
President of the committee
until 16 April 2021
All ten meetings of the Audit Committee
in 2021
Alenka Urnaut
Ropoša
real estate
appraisal
YES NO / Audit Committee
President of the committee
from 22 April 2021
onwards
Six meetings of the Audit Committee
(out of six meetings during her term)
and out of a total of ten meetings of the
Audit Committee in 2021
Mário Selecký
Banking,
organisation and
management
YES NO /
Human Resources
and Management
Board Evaluation
Committee
Member of the committee
from 22 April 2021
onwards
Two meetings (out of three meetings
during his term) and out of a total of
four meetings of the Commission in
2021
Alen Mihelčič
Commercial
operations
YES NO /
Human Resources
and Management
Board Evaluation
Committee
Member of the committee
in 2021
All four meetings of the Human
Resources and Management Board
Evaluation Committee in 2021
Robert
Ravnikar
Sales YES NO /
Human Resources
and Management
Board Evaluation
Committee
Member of the Human
Resources and
Management Board
Evaluation Committee until
10 April 2021; from 22 April
2021 onwards, a member
of the Audit Committee
One meeting of the Human Resources
and Management Board Evaluation
Committee (out of one meeting during
his term) and out of a total of four
meetings of the Committee in 2021,
and six meetings of the Audit
Committee (out of six meetings during
his term) and out of a total of ten
meetings of the Audit Committee
Marko Šavli Safety, compliance YES NO /
Audit Committee,
Human Resources
and Management
Board Evaluation
Committee
Member of the Audit
Committee until 16 April
2021 and member of the
Human Resources and
Management Board
Evaluation Committee from
22 April 2021 onwards
Three meetings of the Human
Resources and Management Board
Evaluation Committee (out of three
meetings during his term) and out of a
total of four meetings of the
Commission in 2021, and four
meetings of the Audit Committee (out
of four meetings during his term) and
out of a total of ten meetings of the
Audit Committee
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External committee members
Appendices C.3 and C.4 are included in the financial section of the annual report.
Nada Drobne Popović
President of the Management Board
Matija Bitenc
Member of the Management Board
Jože Bajuk
Member of the Management Board
Jože Smolič
Member of the Management Board
Zoran Gračner
Member of the Management Board and
Worker Director
Ljubljana, 10 March 2022
Name and
Surname
Committ ee
Attendance at committee
meetings according to the
total number of committee
meetings
Gender Nationality Education
Year
of
birth
Professional profile
Membership of
supervisory bodies
of non-related
companies
Janez Pušnik Audit Committee
Six out of six meetings of the
Audit Committee as external
member
Male Slovene
Master of
Business
Administration
1970
Court expert witness for
economics, specifically
business valuation and
accounting, certified
appraiser
/
Christoph
Geymayer
Audit Committee
Four out of ten meetings of the
Audit Committee as external
member
Male
Austrian Master of Law 1967
Controlling and reporting, tax
compliance, national and
international tax planning
models, corporate income
tax, income tax, corporate
finance, corporate law, labour
law
/
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9. Non-financial statement
Pursuant to Articles 56(12) and 70 c of the Companies Act (ZGD-1), Petrol d.d., Ljubljana
hereby issues the Non-financial statement of the Petrol Group and Petrol d.d., Ljubljana.
9.1. Description of the Company’s business model
The Petrol Group is a business concern consisting of the parent company Petrol d.d., Ljubljana
and its subsidiaries, jointly controlled entities and associates located in the countries of
Central and South-Eastern Europe. Among the activities of the companies within the Group,
the sale of petroleum products, other energy products and merchandise is the most significant
one (see Sales of Petroleum Products for more information). Petrol's development activities
are focused on the introduction of new energy activities (see Energy and Solutions for more
information) and on the production of renewable electricity (see Generation of electricity from
renewable energy sources for more information). The operations of the parent company and
some of its subsidiaries encompass multiple areas, from sales to energy and environmental
systems, with other companies focusing on a narrower range of business operations (see The
Petrol Group for more information). Petrol Group companies are located in several European
countries (see The Petrol Group in its region for a map).
The sustainable development of the Petrol Group is based on respect for the natural
environment and partnership relations with the wider community (see Sustainable
development for more information). In June 2021, the Petrol Group published the Sustainability
Report of the Petrol Group that was prepared in accordance with GRI standards (the latest
sustainability report is available at Sustainability Report of the Petrol Group 2020.
The situation in the area of transport and the resulting sales of petroleum products together
with the overall economic situation in the markets where the Group operates are the main
factors affecting its operations. Transport is a sector that was hit the hardest by the outbreak
of the COVID-19 pandemic with countries taking numerous measures to contain the pandemic,
restricting movement between and within countries. Petrol d.d., Ljubljana responded to the
pandemic as soon as it had occurred, informing the public on the measures it had taken and
how the pandemic was impacting the Petrol Group's operations (see Petrol Public
Announcements).
9.2. Policies and due diligence, policy results, main risks and risk management, key
performance indicators
9.2.1 Environment
Policy
The policies defining the environmental impact of the Petrol Group are: the framework safety
and security policy, the energy policy and the quality and environmental management policy.
Being an integral part of all processes at Petrol, all three policies overlap as we conduct our
business.
The quality and environmental management policy lays down our environmental protection
efforts. Environmental protection is integrated into all levels of operations of Petrol d.d.,
Ljubljana. Petrol’s environmental management system complies with the requirements of the
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international standard ISO 14001 and is an integral part of Petrol’s development plan
(see Quality control for a list of certificates by company). All Petrol’s employees are
responsible to ensure consistent compliance with the requirements, while the Company's
Management Board guarantees that these requirements can actually be met and that our
fundamental environmental goals can be achieved.
Petrol recognises the importance of sustainable development and environmental protection.
The transition to a low-carbon energy company, partnership with employees and the social
environment, and the circular economy constitute the Petrol Group's business commitments in
this strategic period. Through the continuous development of fuels, we will actively contribute
to reducing emissions. At the same time, we will help reduce the carbon footprint of both the
Petrol Group and our customers by pursuing clear sustainable policies. Thanks to improved
internal processes, new competencies and empowered employees, we will be even more
proactive in addressing the current and future needs of our customers and adapt our
operations to the user, who is at the centre of our attention.
In the field of environmental management, the Petrol Group has committed itself to four
fundamental goals:
1. To keep all storage facilities, service stations and other buildings up-to-date with
current and foreseen environmental standards and guidelines;
2. To reduce the emissions of hazardous substances to the minimum;
3. To use natural resources economically;
4. To prevent accidents and reduce the possibility of accidents as much as possible.
Depending on the activities taking place at different sites, Petrol d.d., Ljubljana has obtained
several environmental permits. It has valid environmental permits for all SEVESO plants and
IEDs. It also consistently implements all the provisions defined in environmental permits.
The energy policy obliges Petrol to establish control over the use of energy and water that
are necessary for the provision of its services. At Petrol, we are committed to continuously
optimising our business efficiency and reducing energy and water consumption, while also
reducing our environmental impact and, consequently, greenhouse gas emissions. Through
its energy policy, Petrol aims for responsible and efficient energy use and water saving in
connection with all its property, plant and equipment, which is also reflected in a smaller
environmental footprint. Energy management and operations, as well as water-saving, are
given a prominent role, and we follow the example of the best and most cost-effective
practices. Our aim is to reduce the costs of energy and water in comparison to the revenue
generated. This way we want to obtain a competitive advantage in the sector. Petrol has
maintained an energy management system certified to ISO 50001:2018 requirements
for many years. Through this system, we aim to reduce energy consumption and
CO
2
emissions, while also improving energy management within Petrol and with our external
users of energy and environmental solutions.
Due to the strategic importance of products related to oil and merchandise sales, ensuring the
safety, security and continuity of business is one of the key principles of the Petrol Group’s
business. This principle is implemented through setting up a functioning integrated safety and
security system, meaning a comprehensive, all-encompassing safety and security system in
which the synergy between individual safety and security areas needs to be ensured together
with the synergy of safety and security areas (safety and security processes) with other
business processes.
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The framework safety and security policy includes the following areas:
x Occupational safety and health
x Fire safety
x Physical and technical protection of people and property
x Environmental protection
x Safe handling of chemicals and safety while transporting hazardous substances by
road, rail or sea
x Protection of classified information and trade secrets
x Information security.
Due diligence
Environmental due diligence is carried out as an integral part of the environmental
management system. This includes the energy aspect and the safety and security aspect, as
Petrol considers the environment in a very broad sense. In the scope of every process, an
annual activity report is drawn up, including environmental content (monitoring results,
inspection results, the execution of environmental projects, compliance). The Company's
management reviews the reports and discusses them as part of the management review of
integrated management systems. The management review also covers the environmental
policy and addresses the results of internal audits. The management review leads
to conclusions addressing changes in the environmental management system, the continuous
improvement of the system and opportunities for the better integration of the environmental
management system into the processes of the Company.
Main risks and risk management
In the Petrol Group, risks related to environmental protection are managed through the Group's
framework safety and security policy, the compliance system and the elementary
(implementing) safety, security and environmental subpolicies/systems (e.g. the safety and
security management system under the SEVESO Directive, which applies to all SEVESO
establishments managed by the Petrol Group).
We are committed to developing a strategy to achieve and manage comprehensive key
climate change risk. In connection with the National Energy and Climate Plan, which Slovenia
will have to implement by 2030, and the latest guidelines on non-financial reporting on climate
indicators and the recommendations for the sustainable operation of companies:
x we constantly study our possibilities and outline further strategic directions for
sustainable business;
x we set environmentally measurable goals and indicators (strategic and sectoral) and
establish comprehensive energy and environmental accounting (CEOK) and
x we are currently studying our possibilities and determining further strategic directions for
sustainable business,
The key risks are also related to ensuring process safety, which implies the comprehensive
protection of people, the environment and property in the narrow and broad sense when
handling hazardous substances. Process safety defines the areas of occupational safety and
health, environmental protection (air, water, soil, noise and radiation), safety culture, the
handling and manipulation of hazardous and non-hazardous chemicals, fire protection,
inspection supervision and other areas.
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The above is provided:
x through compliance with the applicable legislation relating to safety, environment, security,
protection and rescue;
x through the consistent implementation of instructions, warnings and regulatory
arrangements laid down by respective administrative bodies in the relevant areas of safety,
security and the environment;
x by taking into account national programmes in the field of environmental protection,
protection against natural and other disasters, occupational health and safety, road safety
and other areas of safety;
x through effective security and the protection of the Petrol Group in terms of safety, security
and rescue, as well as through the organisation, powers and responsibilities of employees
to ensure control over the operation of establishments from a technical, safety and security
point of view;
x through instructions, procedures and practices applicable to third-party access
to establishments;
x through instructions, procedures and practices applicable to hazardous works at
the establishments;
x by managing the operation from the point of view of controls, monitoring and audits;
x by defining and evaluating the risk of major disasters and measures to
mitigatetheir consequences;
x by managing changes from a technical, safety and security point of view;
x by managing incidents, including the examination of events and action
plans to prevent recurrence (i.e. LFI learning from incidents);
x by verifying and evaluating the risks and environmental aspects that serve as a basis for
planning safety and security measures in individual areas of safety and security;
x through operations compliant with the ISO 9001:2015 standard (quality management), the
14001:2015 standard (environmental management) and the occupational health and
safety standards;
x by ensuring the quality of products and services.
High levels of competence and awareness among employees are of key importance for the
successful implementation of the safety and security system. Therefore, the Petrol Group
continuously carries out training in accordance with the training programme and plans. The
training covers the following areas: occupational health and safety, hazardous chemicals
handling, the transport of hazardous goods, fire safety, anti-explosion protection,
environmental protection, the SEVESO plant safety management system, information security,
etc.
Key performance indicators
The Petrol Group was the first energy company in Slovenia to commit itself to sustainable
development. We perceive our role in fulfilling this strategic commitment as twofold. On the
one hand, we pursue our core business with a high level of responsibility towards the natural
and social environment and on the other hand, we are actively promoting the sustainable
transformation of the wider society through our business programmes and products. In addition
to optimising the environmental footprint of the core business activity, we help our partners
reduce their energy, carbon, water and material footprint with our business products.
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Every two years, we prepare a standalone Sustainability report stating the indicators
according to the GRI-4 Guidelines (in June 2021, Petrol d.d., Ljubljana published the 2020
Sustainability Report of the Petrol Group). The content of the sustainability report is
determined on the basis of three criteria: relevance, the integrity of key indicators of
sustainable development management and the sustainability context.
x The criterion of relevance means that the content of the report shall be narrowed down to
the most relevant areas of interest defined based on the matrix of key stakeholders and
the sustainable development strategy of the Petrol Group. We selected those that influence
our sustainability footprint the most.
x Through sustainability indicators, which are used to measure our performance, we
obtained additional leverage for long-term sustainable development management in new
areas defined as our strategic goal.
x Because we conform our sustainability performance to the life cycle philosophy (LCA), the
key indicators of our sustainability performance also include those concerning our suppliers
and customers. We will continue the orientation of spreading sustainable
impact, considering that our sustainability performance gradually influences the
sustainable transformation of the wider society.
The sustainability report provides an analysis of the present and, where relevant, a comparison
with past trends, while being forward-looking at the same time. We realise that sustainable
development is not a goal but merely a path, so our path is carefully recorded and assessed
in the three dimensions of time. Reporting is transparent and accurate as per the data currently
available to the Petrol Group.
The environmental aspects of our sustainable development are measured and managed
through indicators that reflect the environmental footprint of our own activities (service stations,
storage facilities for petroleum products and liquefied petroleum gas (LPG), treatment plants,
the biogas plant, office buildings, etc.), and through indicators that reflect the contribution of
our activities towards a smaller environmental footprint of other parts of the wider society.
x The monitoring of wastewaters, air emissions, noise sources, leak detection in reservoirs
and fuel quality is carried out on a regular basis.
x We also monitor the treatment of biodegradable waste and carry out waste assessment.
x To monitor the functioning and management of biological processes in treatment plants
and the biogas plant, we perform daily measurements of individual parameters, which
ensure successful process control and the possibility of reducing environmental pressures.
x Our strategic sustainability indicators are measured and managed annually.
The assessment of environmental aspects is carried out by professionals from different fields
within the Petrol Group. The assessment takes place at least every three years or when
significant legislation or environmental policy changes occur, or when the opinion of the
stakeholders has changed. We work closely with our suppliers and contractual partners in
managing significant environmental aspects and indicators (for more information, see the
Protection of the environment and the 2020 Sustainability Report of the Petrol Group that was
published by Petrol d.d., Ljubljana in June 2021).
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9.2.2 Social and human resources matters and the protection of human rights
Policy
Caring for social and environmental issues and offering help in solving social problems is part
of the Petrol Group’s operations and its wider social challenges. Our responsible social attitude
is demonstrated through the support we provide to a number of sports, arts, humanitarian and
environmental projects. We help wider social and local communities achieve a dynamic and
healthier lifestyle and, through this, a better quality of life.
The Petrol Group is one of the biggest employers in Slovenia and in the region. The HR
strategy is an important part of the Group's development strategy. Successful, motivated,
committed and loyal employees are the heart of the Petrol Group and its future. The vision,
with which we address several main challenges of modern society, and ambitious business
plans require comprehensive human resources management. This includes a well-thought-out
recruitment policy, caring for the development and training of staff, teamwork, an effective
system of employee remuneration and promotion, monitoring satisfaction and commitment,
and caring for the safety and health of employees.
Equal opportunities for all is the cornerstone of our work. We respect human rights that are
recognised by internationally established principles and guidelines, including the European
Convention for the Protection of Human Rights and Fundamental Freedoms and the United
Nations Declaration on Human Rights. We comply with legal and human rights standards in
all countries where we operate. This is what guides our business relationships with customers,
suppliers and employees. We promote an ethical attitude towards employees and our wider
environment. The Petrol Group also employs persons with rights recognised based on their
disability. We are a family- and employee-friendly company. The rights and obligations of
employees in Petrol d.d., Ljubljana, are regulated by a corporate collective agreement.
We are signatories of the Diversity Charter of Slovenia. We respect diversity in all the
processes of recruitment, promotion and staff development, and provide equal opportunities
for all, regardless of gender, age, nationality, race, religion or other cultural differences and
characteristics. In staffing and staff development, we pay special attention to equal
opportunities for both genders. In the field of diversity, our measures are also introduced
through the Mentoring, Healthy at Petrol, Family-Friendly Company and Open Space
programmes, where we strive to promote intergenerational cooperation and learning at the
Company level, promote occupational health and the involvement of all employees. We also
show care for our employees through the development and promotion of corporate integrity.
Through these activities, we live and spread our value of respect.
Due diligence
At Petrol, we are aware of the importance of social dialogue and cooperation with social
partners. When adopting regulations governing the rights, obligations and responsibilities of
employees, we organise joint consultations and co-decision making with the Workers’ Council
or the trade union, in accordance with the applicable legislation and other general regulations.
The Trade Union of the Petrol Group and the Service Station Workers’ Union include over
1300 employees in Slovenia. Employees in subsidiaries are also members of other trade
unions.
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The Workers’ Council of Petrol d.d., Ljubljana has three standing committees (Committee for
Status and Personnel Matters, Committee for Occupational Safety and Health Matters and
Trade Union Cooperation Committee) comprising 13 members representing all organisational
units. The worker director, as a member of the Management Board, participates in decision-
making in connection with issues relating to the formulation of personnel and social policy. The
Supervisory Board of Petrol d.d., Ljubljana includes three employee representatives, who are
elected by the Workers’ Council.
Preventive and periodical medical examinations are carried out within the scope of ensuring
health and safety at work. We also regularly educate and provide technical training to staff
to ensure they work safely. In addition, the project “Healthy at Petrol” comprises programmes
designed for preventive and curative measures and health promotion in the workplace. We
also ensure the safety of work and appropriate professional qualification of our external
colleagues by carrying out various technical programmes designed for them in the area of
occupational safety. We lay down procedures relating to violence committed by third parties
and we inform employees occupying higher-risk workplaces thereof.
Good health is a precondition for quality and success in life and at work. Through our Healthy
at Petrol programme, we enable our staff to take part in different activities. The programme
is mainly aimed at providing for a safe and stimulating working environment, raising the
awareness of staff about the importance of remaining healthy and disseminating knowledge
about a safe and healthy lifestyle at work, which can then also be reflected in personal
lifestyles. Promoting a healthy lifestyle for our staff and taking ownership of our own health can
prevent various chronic illnesses that are usually the result of an individual’s lifestyle. It can
also improve the quality of life in old age.
Work organisation during the pandemic and employee support programme
The year 2021 was, as the year before, particular due to COVID-19 epidemic-related changes
in the economic and health situation in the region. This interfered significantly with the regular
work processes and our activities related to the care for employees. These activities were
mainly dedicated to safety at work, protective measures to maintain health, the adjustment of
training content and regular communication with employees regarding changes that have
affected our work and life.
Due to the epidemic, a considerable number of employees continued to work from home in
2021, which affected work processes, management methods and communication in
organisational units, additionally encouraging us to better implement the updated Rules on
Working from Home and Teleworking and the Organisation of Remote Management Training
for Managers. The Rules cover the areas that are significant in terms of the organisation of
work from home and introduce a revised procedure for approving work from home. Great
attention is placed on ensuring safety and health at work. Employees who perform work at
home on a larger scale have been provided with appropriate work equipment. However, all
employees working from home are entitled to compensation for the use of their own resources.
We developed an information solution for monitoring work from home, enabling the generation
of analytical reports, which help us make decisions.
As of December 2020, employees of Petrol d.d., Ljubljana and at third-party managed service
stations have at their disposal free counselling (via telephone or in-person) in case of stress or
problems in their professional or personal life. Mental health care is very important. By
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introducing this measure we want to equip employees with the resources necessary to
successfully face more difficult challenges while removing the stigma attached to mental health
care. We know that only healthy and satisfied employees can be completely committed and
full of energy to achieve our goals. In 2021, we also provided counselling to family members
of employees and students at points of sale.
Main risks and risk management
No major risks are identified in terms of Petrol's relations with the wider social environment
from the point of view of support to different stakeholders. Through perfected processes of
cooperation and the allocation of funds to different stakeholder groups, we ensure that such
cooperation with the wider society is congruent with the legislation and the ethical principles of
the Petrol Group.
Risks related to human resources may arise in relation to the lack of required knowledge,
skills, experience and motivation of employees, and the unwanted turnover of key personnel.
In order to prevent, eliminate and manage cases of violence, mobbing, harassment and other
forms of psychosocial risk at work, the Petrol Group adopted the Code of Conduct, which is
handed to all employees, who thus become acquainted with Petrol's values and principles that
commit us to respect ethical and professional standards. In the scope of the periodic
organisational climate measurement and other internal surveys, the employees can express
their opinion and draw attention to any irregularities.
Management risks can lead to risks related to managerial competencies, disruptions in
communication with employees, improper authorisation and limitation, and the risks of
unrealistic, subjective and infeasible benchmarks. Management risks are controlled through
the regular measurement of organisational climate and employee satisfaction and commitment
across the Petrol Group, the system of annual and quarterly interviews, the assessment of
skills and leadership, the measurement of the quality of internal services and the adopted
human resources strategy. We have introduced a system of mentoring and coaching, the main
purpose of which is the transfer of good practices, knowledge, skills, values and experience.
The management of risks of fraud and other illegal acts is split into two subgroups that are
subject to individual assessment: the risk of criminal offences/fraud and the corporate integrity
risk. The risks of criminal offences/fraud include fraud committed by management, illegal acts,
theft, the abuse of employees and third parties, unauthorised use of resources, intentional
damage and violent illegal acts. The management of the risk of criminal offences/fraud requires
constant supervision and control. The risk of corporate integrity breach refers to the
incompatibility of the Company's operations with the law, Petrol's Code of Conduct, other rules,
applicable recommendations, internal regulations, good business practices and ethical
principles. The management of this risk includes the application of the compliance system
(Rules on the Functioning of the Compliance Assurance System).
Petrol is exposed to a higher risk of fraud due to the nature of its operations, which include
point-of-sale operations involving cash registers and sales of petroleum products. Pursuant to
the Code of Conduct and internal regulations, a zero-tolerance policy to fraud has been
adopted within the Petrol Group. In charge of the comprehensive management of the risk of
fraud is a task force that has put together a fraud register, assessed the risk of certain acts of
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fraud being committed, catalogued existing preventive and remedial checks, and drew up
actions for the containment of fraud. The responsibility to detect and investigate fraud within
the Petrol Group is in the hands of Corporate Operations Control and Investigations, a
professional service consisting of a qualified team of investigators. Risks related to the respect
for human rights can emerge both within the Company and in its relations with external
stakeholders. These risks are managed by adhering to applicable regulations.
Health and safety of employees and customers during the COVID-19 epidemic
Petrol has been successfully managing the smooth operation of all processes since the
beginning of the SARS-COV-2 virus epidemic. At the beginning of the epidemic in 2020, many
new challenges needed to be addressed to ensure the safety and health of all participants,
especially in providing adequate protective equipment for employees, which was in short
supply until the introduction of preventive measures in all workplaces, most of which are still in
force today.
The revision of the risk assessment adopted in the first wave of the epidemic is still a
cornerstone of the safety and health of all employees and others present. It is equally important
to ensure the health of our customers and other users of our facilities. The essential measures
that are carried out at points of sale are also regularly published and updated on the website
www.petrol.si, as we want to raise awareness that the health and safety of our customers are
of utmost importance to us.
An essential tool for the rapid management of the situation at individual workplaces was the
introduction of an electronic registration form, which we continuously adapted and coordinated
with the current findings of experts and the requirements of applicable regulations through the
development of the epidemic.
The form is still used today, and in addition to updates, the automation of responses and the
provision of information to key services for the fastest possible action and notification was
introduced.
From the second wave onwards, we encountered frequent inspections, which increased
dramatically with the introduction of the RVT condition in 2021. No major discrepancies were
identified, most cases were closed during the on-site inspection, in other cases, additional
explanations were provided to the competent inspectorate and the required measures were
met.
In individual cases, we encountered the problem of providing adequate staff at points of sale,
which was successfully resolved by the competent heads of the points of sale through
redeployments or similar measures. In one case, it was also necessary to establish an
emergency operation of a professional fire brigade at a fuel depot.
Today, we can say that Petrol is ready for similar challenges, and the measures we are
implementing due to the virus that has been crippling society for almost two years make it
possible to provide a healthy workplace for all participants as much as possible.
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Key performance indicators
At Petrol, we measure progress, build relationships, ensure proper communication and provide
for the management of employees in Slovenia through measuring organisational climate and
employee satisfaction and commitment on a regular basis. We recognise our own strengths
and areas where there is room for improvement.
In recent years, we have improved existing and introduced additional management and
development systems, which helped us to improve greatly in this area. The Petrol Group
systematically and routinely provides for the development and education of employees in all
markets in which we operate. We provide various ways for employees to acquire expertise,
skills and work experience. In the circumstances of the epidemic, we continued remote training
by means of M 365 tools and creating own materials in the e-classroom. We offered employees
a series of short e-courses in corporate compliance, information security, remote team
management skills, communication, sales and coaching skills.
Fifty-eight percent of the Petrol Group employees are male and 42 percent are female. Over
the years, the gender structure has gradually improved in favour of women, whose share
has grown by an average of 1 percentage point per year since 2003. The gender balance
differs across companies depending on the activity of each company.
Particular attention is given to expanding the culture of a family-friendly enterprise. We have
been involved in the certification process in Slovenia for over ten years and we successfully
passed a second final audit by an external audit council. We successfully implemented all the
planned measures to facilitate the balance between work and private obligations.
In Note 6.6 Labour costs of the financial report, we have disclosed the receipts of the
employees of the Petrol Group and Petrol d.d., Ljubljana. The receipts of employees at third-
party managed service stations are included in the item Costs of service station managers
under Note 6.5 Costs of services. Added value per employee in the Petrol Group is presented
in the chapter Business highlights of 2021 (for more information, see chapters Responsibility
towards Employees, Information technology, Risk management).
9.2.3 Fight against corruption and bribery
Policy
Petrol is a signatory and ambassador of the Slovenian Corporate Integrity Guidelines. In the
pursuit of our work, we abide by high standards of business ethics and build corporate culture
promoting lawful, transparent and ethical conduct and decision-making by all staff.
Due diligence
The Petrol Group has appointed two corporate integrity officers. They are appointed by the
Company's Management Board, are independent in their work and report directly to the
Management Board. They regularly inform the Management Board and the Audit Committee
about their activities. Among other things, the officers provide professional assistance to
employees and advise employees and the Management Board on further steps and measures
in the field of integrity. The Company has established several lines for reporting violations,
fraud and other irregularities, namely the possibility of reporting via e-mail kodeks@petrol.si;
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integriteta@petrol.si, via the website Report an irregularity or telephone number 080 13 95.
Special emphasis is on the protection of bona fide whistleblowers.
Petrol has the necessary internal regulations in place. Petrol's Code of Conduct contains
provisions on fair and transparent operations and the prevention of bribery and corruption.
Every employee receives the Code in physical form. The Code is also published on the Intranet
and online. The Rules on Ensuring Compliance have been adopted, which set out the basic
rules and system solutions for compliant operations, and the Rules on Preventing,
Determining and Eliminating the Consequences of Mobbing, on the basis of which
undesirable behavioural practices from the point of view of the inappropriate treatment of
employees are detected, identified and prevented. The Company has adopted the Rules on
the Prevention of Corruption, which set out measures and methods to prevent corruption,
manage conflicts of interest, handle gifts and invitations, give and accept benefits and
introduce other business practices that reduce the risk of using decision-making power
contrary to external or internal regulations and ethical standards.
Main risks and risk management
Given the Company's principal activity, the risks in the area of corruption and bribery could
arise at all levels of Petrol's business, both among employees at the points of sale, as well as
with executive and other staff in different areas of business. A Security College and a Risk
Committee have been established at the level of the Petrol Group to mitigate risks. In order
to ensure the transparency of operations, the prevention of non-compliant practices and the
establishment of control mechanisms, key committees have been established for procurement,
investment processes and for the management of development needs and projects. In
addition, risk-mitigating control mechanisms have been embedded in processes, for instance,
the publication of the Code of Conduct, regular communication about the Code and corporate
integrity within Petrol, anti-corruption clauses in agreements with business partners, and
assessments of the business partners’ acceptability.
The Company has also established an effective system for verifying the acceptability of
business partners for the entire Group, which involves multi-stage verification by various
professional stakeholders. Before concluding a (sales/purchase) transaction the Company
obtains information from business partners using the updated and upgraded “Know Your
Client” (KYC), on the basis of which it conducts due diligence of the business partner.
Obtaining data that forms an integral part of the questionnaire is a requirement under the
provisions of the Prevention of Money Laundering and Terrorist Financing Act.
Employees of the Petrol Group are also regularly trained in this field. All employees attend
the Corporate Integrity training, which enhances the understanding and knowledge of how to
act in an impartial, just, credible, responsible and trustworthy manner, adhere to high moral
principles in accordance with Petrol’s Code of Conduct, and how to act properly in case of
detected irregularities.
In the current business strategy of the Company and the Petrol Group, the management of the
Petrol Group has made it a priority to mitigate corruption risks and promote ethical conduct
among employees, and consequently also among business partners. In the event of identified
irregularities in a suspected criminal offence, the Company reacts in accordance with the
legislative possibilities regarding the reporting of irregularities and compensation for damage.
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The Company has developed a model of security consulting, where signs of corruption risks
are identified. The Company adopted the Rules on conducting operations control and
investigations in the Petrol Group. The purpose of the Rules is to determine actions and
steps to be taken in operations control and when conducting investigations, and to establish
an effective system for ensuring the integrity of the Company. The procedures for controlling
operations and conducting investigations are aimed at quickly identifying and detecting
violations, as well as at establishing mechanisms for appropriate actions (sanctioning),
enabling the Petrol Group to operate and conduct business in accordance with moral, legal
and ethical principles. In the event of a suspected violation, procedures are initiated under a
specific protocol. The implementation of supervision and investigation procedures in Petrol is
carried out through the organisational unit Corporate Security and Control of Operations.
Key performance indicators
The Petrol Group has a zero-tolerance policy towards criminal offences committed with intent.
9.2.4 Environmentally sustainable economic activities and sustainable investments
In accordance with the Taxonomy Regulation (Regulation (EU) 2020/852 of the European
Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate
sustainable investment, and amending Regulation (EU) 2019/2088), which entered into force
on 12 July 2020 and established a classification system for environmentally sustainable
economic activities, we report the indicators for taxonomy-eligible economic activities for the
financial year 2021.
The reporting covers the environmental objectives of climate change mitigation and adaptation
for Petrol d.d. In February 2022, natural gas as a low-carbon gas was added to the list of
eligible energy sources. The indicators are calculated on the basis of the definitions in the
annex to Regulation 2020/852 Key performance indicators for non-financial undertakings.
Sustainable economic activities and sustainable investments in Petrol d.d. pursue the strategic
goals of a green future for the period 20212025 with an emphasis on improving energy
efficiency, investing in production, developing sustainable mobility and smart energy
management.
Share of revenue from products or services related to economic activities harmonised
with taxonomy disclosure for 2021
Economic activities
Code
Absolute revenue
Revenue share
A.) TAXONOMY-ELIGIBLE ACTIVITIES
Energy
D35.2, D35.1,
D35.30
EUR 49,154,783
1.38%
Construction and real estate
M71.1, F41.10,
F43.2, C33.12,
S95.22
EUR 16,110,706
0.45%
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Water supply, wastewater and
waste
management,
environmental remediation
E36.00
EUR 2,964,141
0.08%
Information and communication
J62.0
EUR 1,657,722
0.05%
Transport
F42.22,
N77.11
EUR 513,741
0.01%
Revenue from taxonomy-eligible
activities (A)
/
EUR 70,401,093
1.98%
B.) TAXONOMY NON-ELIGIBLE ACTIVITIES
Revenue from taxonomy non-
eligible activities (B)
/
EUR 3,486,618,697
98.02%
Total (A+B)
/
EUR 3,557,019,790
100%
In 2021 revenue from taxonomy-eligible activities accounted for 1.98 percent of total revenue
in Petrol d.d. ,Ljubljana.
Revenue from energy activities accounted for the majority of revenue from taxonomy-eligible
activities, namely 1.38 percent or EUR 49,154,783. Energy activities include transmission and
distribution networks for renewable and low carbon gases natural gas concessions,
bioenergy heat/cold generation wood biomass, electricity transmission and distribution,
district heating/cooling distribution, heat/cold cogeneration and electricity from bioenergy,
heat/cold generation using waste heat, photovoltaic energy production and geothermal
heat/cold generation. According to the NACE statistical classification of economic activities,
Revision 2, we are referring to the activities of manufacturing gas, distribution of gaseous fuels
through mains (D35.2), electric power generation, transmission and distribution (D35.1) and
steam and air conditioning supply (D35.30).
Construction and real estate represent 0.45 percent of all revenue of Petrol d.d. Ljubljana in
2021 and include activities of installation, maintenance and repair of energy-efficient
equipment related to the supply of energy solutions for home and industrial users and
renovation of existing buildings in the energy renovation of buildings: architectural and
engineering activities and related technical consultancy (M71.1), development of building
projects (F41.10), electrical, plumbing and other construction installation activities (F43.2),
repair of machinery (C33.12) and repair of household appliances and home and garden
equipment (S95.22).
Activities in the field of water supply, wastewater and waste management, remediation
activities (0.08 percent of revenue) relate to water collection, treatment and supply (E36.00),
specifically treatment plants.
Revenue of the Information and Communication division (0.05 percent of revenue) represents
activities of solutions based on data for the reduction of greenhouse gas emissions (J62.0)
and computer programming, consultancy and related activities, as defined in the taxonomy.
They include the development of software solutions for integrated energy management
systems and the use of software for the management of water supply systems, district energy,
heating systems and public lighting.

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Transport with a share of 0.02 percent of all revenue in 2021 is focused on sustainable forms
of mobility. It covers the infrastructure to enable low-carbon road transport and public transport.
It includes the construction of utility projects for electricity and telecommunications (F42.22),
specifically charging infrastructure for electric vehicles, and renting and leasing of cars and
light motor vehicles (N77.11) in the rental of electric vehicles by Petrol d.d. Ljubljana.
Share of investments in fixed assets in products or services related to economic
activities harmonised with taxonomy disclosure for 2021
Economic activities
Code
Absolute investments
in fixed assets
Share of
investments in
fixed assets
A.) TAXONOMY-ELIGIBLE ACTIVITIES
Construction and real estate
F41.10, F43.2,
C33.12, S95.22
EUR 10,134,771
39.49%
Energy
D35.2, D35.1,
D35.30
EUR 2,220,474
8.65%
Transport
F42.22, N77.11
EUR 2,055,094
8.01%
Water supply, wastewater and waste
management, environmental
remediation
E36.00
EUR 242,996
0.95%
Information and communication
J62.0
EUR 53,223
0.21%
Investments in fixed assets from
taxonomy
-eligible activities (A)
/
EUR 14,706,557
57.30%
B.) TAXONOMY NON-ELIGIBLE ACTIVITIES
Investments in fixed assets from
taxonomy non
-eligible activities (B)
/
EUR 10,958,933
42.70%
Total (A+B)
/
EUR 25,665,491
100%
Total value of gross investments for Petrol d.d. Ljubljana in 2021, excluding M&A projects,
amounted to EUR 25,665,491. Total investments in taxonomy-eligible activities amounted to
EUR 14,706,557 or 57.30 percent.
The value of investments related to maintenance and repairs was EUR 126,939, while the
value of investments in building renovations was EUR 5,658,135. Investments in maintenance
and repairs related to the activities of water supply, wastewater management, environmental
remediation and energy. Investments in building renovations are tied exclusively to
construction and real estate activities.

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The largest share among sustainable investments in fixed assets was represented by
investments in construction and real estate (39.49 percent of all investments in fixed assets),
the majority of which are two major projects, namely comprehensive energy renovation of
public buildings at the Technical School Centre Maribor and complete and partial energy
renovation of buildings in the City of Ljubljana (EOL-3).
8.65percent of all investments in fixed assets represent investments in the energy sector,
specifically investments in concessions for the distribution of natural gas, in district heating and
cogeneration systems and sustainable energy solutions for industry.
Investments in fixed assets of transport activities or mobility amounted to 8.01percent of all
investments in fixed assets of Petrol d.d. in 2021. Investments in fixed assets were intended
primarily for activities on EU projects Multi-E, Urban-E and Next-E and the establishment of a
network of charging infrastructure, especially for electric vehicles.
Activities of water supply, wastewater management and waste management, environmental
remediation recorded a share of investments in fixed assets in the amount of 0.95 percent.
They relate mainly to investments in treatment plants and wastewater treatment.
Investments in fixed assets of information and communication activities (0.21 percent) were
mainly intended for upgrading the IoT platform Tango.
These activities and investments are presented in more detail in Chapter 14.4 Energy and
Environmental Systems.
The Company has no significant investments in working capital in products or services related
to taxonomy-compliant economic activities.
Nada Dr
obne Popović
President of the Management Board
Matija Bitenc
Member of the Management Board
Jože Bajuk
Member of the Management Board
Jože Smolič
Member of the Management Board
Zoran Gračner
Member of the Management Board and
Worker Director
Ljubljana, 10 March 2022

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10. Performance analysis of the Petrol Group 2021
10.1 Business environment
In 2020, the world faced a pandemic that, combined with strict health and protection measures,
also had an impact on 2021 and consequently the operations of the Petrol Group. The Petrol
Group developed an integrated response to the crisis caused by the epidemic. Initially,
activities were focused on ensuring the continuity of operations in the changed circumstances
and on identifying and managing risks. Further activities had a long-term focus so that the
Petrol Group could operate without interruption in a very different business environment.
The Petrol Group operates in two highly competitive industries energy and trade.
Besides trends in the area of energy and trade, the Group's operations are subject to several
other and often interdependent factors, in particular changes in energy product prices and the
US dollar exchange rate, which are a reflection of global economic trends. In addition,
operations in the Petrol Group's markets are influenced to an important extent by local
economic conditions (economic growth, inflation rate, growth in consumption and
manufacturing) and measures taken by governments to regulate prices and the energy market.
Impact of the pandemic
The Petrol Group's operations are also affected by the measures taken by countries to contain
the pandemic. The sectors most affected by the pandemic include aviation, public and
individual transport, tourism and personal services.
In their forecasts at the beginning of February 2022, the International Monetary Fund and the
European Commission assessed the impact of the pandemic on the global economy. After
significant declines in economic activity in 2020, we witnessed an economic recovery in 2021,
despite the continuation of the pandemic. The forecast of economic growth for Petrol's largest
sales market Slovenia (6.9% GDP growth, previously 3.7%) and Croatia (10.5% GDP growth,
previously 4.7%) has improved significantly. According to IMAD's forecasts in the Autumn
Forecast of Economic Trends, Slovenia expects a 6.1 percent growth in 2021.
To mitigate the negative effects of the epidemic, comprehensive packages of measures were
adopted at the national level and by the European Central Bank (ECB) and the European
Commission aimed at alleviating the loss of revenue of the economy and the general
population, providing liquidity and supporting economic recovery.
In addition to the continuation of the epidemic, stable economic growth in 2021 was
accompanied by high growth in the prices of energy products. Reasons for the high prices of
energy products include increased energy demand due to economic growth, high prices of
carbon dioxide allowances in the European Union (closure of thermal power plants), limited
supply of natural gas from Russia, lower production of electricity from renewable sources due
to the weather conditions, and a long and cold winter.

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Impact of the pandemic on the GDP change in %
Source:, International Monetary Fund, World Economic Outlook, February 2022
The Petrol Group has strictly followed the instructions of the authorities when preparing and
implementing measures in all markets where it operates. Its primary concern was oriented
towards measures to protect the health of Petrol's customers and employees, and it also kept
the public informed about all measures.
Depending on the course of the epidemic in 2021, various measures were in place in Slovenia
to contain the epidemic, especially measures to restrict movement, namely a restriction of
movement between municipalities, a restriction of movement of people between 9 pm and 6
am (in force until 11 April 2021), difficulty crossing national borders (required tests for SARS-
CoV-2 infection, quarantine …). In the first half of the year, measures restricting movement
had a negative impact on transport and mobility, and thus on lower sales of petroleum
products. During summer, tourist flows mostly took place on the roads, which had a positive
impact on our business.
The Government of the Republic of Slovenia declared an epidemic on 19 October 2020, and
last extended it by 30 days on 16 May 2021. The epidemic in Slovenia ended on 15 June 2021.
Due to a significant deterioration of the epidemiological situation, the Government of the
Republic of Slovenia introduced the RVT condition for the performance of most activities on
15 September 2021, which again changed purchasing habits (decline in sales of merchandise).
Similar measures have been adopted by countries in the region where the Petrol Group is
present.

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Impact of oil and petroleum product price movements
The Petrol Group's operations are also significantly affected by the movement of the prices of
oil and oil products on the world market, the method of determining the retail prices of
petroleum products and the movement of the exchange rate of the US dollar and the euro.
The average price of crude oil from January to December 2021 was USD 70.91 per barrel.
Brent crude oil reached its highest value in the reviewed period on 25 October, namely USD
86.12 per barrel, and the lowest value on 4 January of USD 50.34 per barrel. Compared to the
same period in 2020, the average price in 2021 was higher by 69.49 percent, the average price
in EUR was 64 percent higher. Prices of motor fuels and middle distillated followed the trend
of crude oil prices.
Changes in Brent Dated High oil price in 2021 in USD/barrel
Source: Petrol, 2021
Changes in Brent Dated High oil price in 2021 in EUR/barrel
Source: Petrol, 2021

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Earlier this year, the world faced another lockdown due to the COVID-19 pandemic.
Nevertheless, crude oil prices in this period reached an all-time high since January last year.
An important factor influencing the relatively high price growth is Saudi Arabia’s decision to
limit daily production by one million barrels by April 2022. The decision of OPEC, which, as
expected, did not increase the volume of production, also contributed to the growth. However,
the impact of the relatively cold winter in the northern hemisphere, which has caused many
outages and problems in energy distribution, and the aggravation of relations between the
United States and Russia, cannot be ignored.
OPEC analysts have predicted that by the end of 2021, oil demand will rise sharply. Their
words were supported by the global economic recovery. With the arrival of warmer months and
the vaccination of the population, many strict “Covid” measures were limited or even shifted.
The unexpectedly high decline in commercial crude oil inventories in the United States also
contributed significantly to the positive changes in the oil markets. At the beginning of June
2021, we (for the first time in a year) reached the price of oil over USD 70 per barrel. The
relatively high rise in prices has not been halted even by OPEC's announcement that they will
abandon the policy of limiting production at the beginning of July.
Despite the forecasts, OPEC member states and Russia have failed to reach an agreement
on regulating the level of crude oil pumped. In its report at the end of July, the IEA noted a
stronger decline in oil stocks than originally anticipated. At the same time, the market was very
optimistic about the recovery of the world economy, which led to a surplus on the demand side.
If we add to this the strong tropical storms in the Gulf of Mexico (loss of production), a relatively
high rise in the prices of energy products in the third quarter of 2021 was inevitable. Recent
analyses of the world's largest traders in “black gold” predict that the energy crisis will continue.
Increasing the price above USD 80 per barrel was thus only a matter of time. Brent exceeded
the limit of USD 80 per barrel on 4 October 2021.
At the end of 2021, due to a new COVID-19 variant, we received a lot of speculation on the
market and fear of another lockdown of both society and economic activities. All this negatively
affected the price of oil. Even greater price drops were prevented by overhauls at many
refineries and OPEC forecasts to adjust to original forecasts of increased production volumes.
In Slovenia, retail prices of all petroleum products in 2021 were formed freely according to
market conditions. Due to high prices of energy products, on 20 October 2021, the Government
of the Republic of Slovenia adopted the Decree on setting prices for certain petroleum
products, which reintroduced state regulation of the prices of heating gas oil. The maximum
margin allowed was EUR 0.0600 per litre. The Decree was in force for three months.
In Croatia, retail prices of petroleum products formed freely on market terms in the first nine
months. On 14 October 2021, the Government of the Republic of Croatia adopted the Decree
on setting the maximum retail prices of petroleum products (Uredba o utvrđivanju najviših
maloprodajnih cijena naftnih derivata) limiting the retail prices of petrol to a maximum of HRK
11.10 per litre (EUR 1.48 per litre) and retail diesel prices up to a maximum of HRK 11.0 per
litre (EUR 1.46 per litre). On 11 November 2021, the Government of the Republic of Croatia
extended the limit on the maximum retail price of 95-octane petrol and the price of diesel for
one month. It has released retail prices for other fuels. On 7 December 2021, Croatia then
released retail prices for petrol and diesel as well.

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In Serbia, retail prices of petroleum products are set freely under market conditions. In Bosnia
and Herzegovina, from 3 April 2021, the retail calculation margin is limited to a maximum of
EUR 0.128 per litre - before that, the retail prices of petroleum products were formed freely
under market conditions. In Montenegro, the prices of petroleum products are set in
accordance with the Regulation on the Method of Setting the Maximum Retail Prices of
Petroleum Products, which has been in force since March 2021. The prices change fortnightly,
provided that prices on the oil market (Platts European Marketscan) change and the euro and
dollar exchange rates are rounded off. Before that, the prices of petroleum products were set
in accordance with the Regulation on the Method of Setting the Maximum Retail Prices of
Petroleum Products, which was in force from 1 January 2011.
The exchange rate between the US dollar and the euro in 2021 ranged between 1.12 and 1.23
USD per 1 euro. The average exchange rate of the US dollar according to the exchange rate
of the European Central Bank in 2021 was 1.18 USD for 1 EUR.
Impact of the price movements of other energy products
Electricity
2021 was extremely exciting in the energy markets and one of the most difficult years so far,
as we witnessed a remarkable rise in energy prices, while the world was still living in the grip
of an epidemic. Electricity prices began to rise as early as the end of 2020 when the first
COVID-19 vaccines began to appear in public, which markets accepted with optimism and the
anticipation of economic growth, which then actually followed. In addition to higher economic
growth, energy prices were also affected by the low inflow of natural gas into Europe, which
meant that gas storage facilities failed to fill to satisfactory levels before entering winter at the
end of 2021. At the same time, the EU has made a series of commitments to the transition to
carbon neutrality, which call for the closure of coal-fired power plants and encourage
investment in renewable energy sources. This is one of the reasons why the prices of emission
allowances rose from around EUR 30 to around EUR 80 in 2021, which of course spilled over
into the price of electricity. At the beginning of 2021, the price of electricity for the year ahead
on the HUDEX regional exchange was still around EUR 55 per MWh, which is somewhere at
the level of price movements in the last 10 years (from EUR 35 per MWh to EUR 60 per MWh),
during 2021 however, the price of electricity was constantly rising and reached the level of
EUR 167 per MWh at the first peak in October, and even EUR 331 per MWh at the second
peak in December. The price on the daily market on the local stock exchange BSP Southpool
in certain days in December 2021 reached EUR 400 per MWh and more.
Trends in electricity prices in 2021
Source: Petrol, 2021

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High electricity prices have been a challenge for both suppliers and customers. As a result,
many suppliers adjusted their regular price list for household and small business customers
(Petrol adjusted it as of 1 December 2021), and the increase in electricity prices had a special
impact on the economy, which purchases energy in advance under futures products. Part of
the economy, hoping for improvement, waited for the decision to purchase electricity until the
end of the year, which only brought even higher, record prices.
Natural gas
2021 was extremely exciting in the natural gas market and one of the most unusual so far, as
we witnessed a remarkable rise in the price of natural gas. Natural gas prices began to rise in
early 2021, following the lowest levels in 2020.
The rise in prices was influenced by information and optimistic forecasts of economic growth,
as vaccines against COVID-19 were developed. In order to revive the economy as soon as
possible, all countries have consistently promised substantial aid. The rise in prices was further
fuelled by the EU's commitments to the transition to carbon neutrality, which call for the closure
of coal-fired power plants and encourage investment in renewable energy sources. As a result,
the demand for natural gas for the production of electricity in thermal power plants increased,
as the value of emission allowances increased from EUR 30 to around EUR 80. Prolonged
cold weather, which lasted until the second half of May, also affected stocks in Europe's natural
gas storage facilities, which fell to their lowest level in recent years.
At the beginning of 2021, the price of natural gas for the year ahead on the CEGH exchange
was still around EUR 17.00 per MWh, which is at the lowest level of price movements in recent
years. Throughout 2021, however, the price of natural gas has been steadily rising. At the end
of June it reached a level of around EUR 25.00 per MWh, in August EUR 33.00 per MWh, in
September, October and November it ranged between EUR 50.00 and EUR 55.00 per MWh,
in December over EUR 90.00 per MWh and on 21 December 2021 reached a record EUR
139.00 per MWh.
Trends in natural gas prices in 2021
Source: Petrol, 2021

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10.2 Operations of the Petrol Group
Sales revenue
In 2021, the Petrol Group generated sales revenues in the amount of EUR 5 billion, which is
61 percent more than in 2020 and 13 percent more than in 2019 (pre-pandemic period). In
2021, we encountered various measures by countries to contain the epidemic, which restricted
movement both between local communities and between countries. Revenues increased
compared to the previous year, mainly due to higher sales of natural gas and higher prices of
oil and other energy sources and also the incorporation of E 3, d.o.o. and Crodux Derivati Dva
d.o.o. into the Petrol Group.
Structure of Petrol Group's sales revenues in 2021 by activities
In 2021, the Petrol Group sold 3.1 million tons of petroleum products, which is 4 percent more
than in the same period in 2020, of which 44 percent in retail and 56 percent in wholesale. The
largest decline was recorded in the sale of fuels to EU markets, especially in Italy, where a
large number of excise warehouses were closed, which prevented larger imports of petroleum
products into the country. Retail was mainly affected by countries’ measures to restrict
movement to contain the COVID-19 epidemic. In 2020, the lockdown was in mid-March, while
in 2021 the biggest constraints were in the first months of the year. Thus, compared to 2020,
we sold less motor fuels, especially in the first two months, while sales in the rest of the year
were higher than in the same period of the previous year. In addition, in 2020 we sold
significantly more extra light heating oil in the first half of 2020 than in 2021, and sales of extra
light heating oil in the thirst half of the year were higher compared to the same period in 2020.
In addition, due to the extremely low prices of petroleum products, we sold significantly more
extra light heating oil in 2020 than in 2021, and we usually sell the most in the autumn months.
In 2021, we sold 1,420.7 thousand tons of petroleum products in Slovenia, which represents
45 percent of the Petrol Group's total sales. We sold ,1061.6 thousand tons of petroleum
products to the markets of SE Europe , which represents 34 percent of the Petrol Group's total
sales, and 666.0 thousand tons of petroleum products to the EU markets, which represents 21
percent of the Petrol Group's total sales.
At the end of June 2021, the Petrol Group managed over 593 service stations, of which 318
were in Slovenia, 202 in Croatia, 42 in Bosnia and Herzegovina, 16 in Serbia and 15 in
Montenegro.

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In 2021, we generated EUR 487.2 million in revenues from the sale of merchandise, which is
9 percent more than in the same period in 2020. Since 15 September, due to the introduction
of the RVT condition in Slovenia, we have seen a significant drop in sales in this segment.
In 2021, we also sold 141.2 thousand tons of LPG, 36.0 TWh of natural gas, 15.1 TWh of
electricity and 165.4 thousand MWh of heat.
Adjusted gross profit
Adjusted gross profit in the period under review totalled EUR 543.4 million, which is 27 percent
more than in 2020 and 15 percent more than in 2019. In 2021, we ensured better purchasing
conditions for both petroleum products and merchandise. In addition, after the release of the
formation of sales prices, we were able to include in the sales price of petroleum products on
the Slovenian market the real costs of the biocomponent, which must be added to fossil fuels
in accordance with the legislation. We have been very successful in selling natural gas. Due
to more stable conditions on the EU markets, we achieved better financial results despite lower
sales on the Italian market. In the last weeks of March 2020, the impact of the COVID-19
epidemic was already present in these markets. As a result, the surplus of goods on the market
led to a sharp drop in prices on the world market for petroleum products, which led to much
worse financial results in 2020 than in 2021. The impact of the epidemic on the Petrol Group's
operations was greatest in the second quarter of 2020 and in the first quarter of 2021, as
countries adopted a series of measures to contain the epidemic, which restricted movement
between countries and local communities. This led to lower sales of motor fuels, which are
Petrol's main sales item. In early October, Petrol d.d., Ljubljana, completed the acquisition of
a 100 percent interest in the Croatian company Crodux Derivati Dva d.o.o. after fulfilling the
suspensive conditions, which affected on the growth of gross profit in the last quarter of 2021.
Structure of adjusted gross profit or loss of the Petrol Group in 2021 by activities
Operating costs of the Petrol Group in 2021 amounted to EUR 425.1 million, which is
EUR 59.1 million or 16 percent more than in 2020 and EUR 78.9 million or 23 percent more
than in 2019.
The share of operating costs in adjusted gross profit in 2021 was 78.2 percent, which is more
than in the period before the pandemic, mainly due to accrued costs for onerous contracts
from previous years and onerous contracts for the sale of electricity. On the other hand, we
recorded the growth of other operating revenues from the same title.

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Operating costs of the Petrol Group
The costs of materials totalled EUR 29.3 million in 2021, which was EUR 1.4 million or 5
percent more than in 2020.
x Energy costs increased by EUR 1.6 million or 8 percent, of which EUR 0.8 million due to
higher network charges for the natural gas and electricity transmission network, and
EUR 0.3 million due to the incorporation of Crodux Derivati Dva d.o.o. into the Petrol
Group, by EUR 0.3 million due to the higher costs of gas consumed in the Geoplin Group
and by EUR 0.3 million due to the higher fuel costs for engine propulsion.
x Costs of consumables decreased by EUR 0.2 million or 3 percent. Among them, the costs
of materials for maintenance, cleaning supplies and personal protective equipment in the
parent company decreased the most, while they increased by EUR 0.3 million in the Ekoen
Group and by EUR 0.2 million due to the incorporation of Crodux Derivati Dva d.o.o. into
the Petrol Group.
The costs of services in 2021 totalled EUR 147.7 million and were up EUR 14.4 million or 11
percent from 2020.
x The most significant item in the costs of services were the costs of transport services, which
stood at EUR 33.1 million and increased by EUR 4.1 million or 14 percent compared to the
previous year. Sales of petroleum products increased by 4 percent, of which 5.4
percentage points were due to the incorporation of Crodux Derivati Dva d.o.o into the Petrol
Group - transport costs increased by EUR 1.8 million due to the company's incorporation
into the Petrol Group (5.5 percent of the Group's transport costs), and they additionally
increased by EUR 1.1 million (mainly costs of data transfer, postal and telephone services)
due to the incorporation of E 3, d.o.o. into the Petrol Group. Due to the fall in sales of
liquefied petroleum gas in the LPG Group, costs in this company decreased by EUR 0.3
million.
x Cost of service station managers amounted to EUR 30.8 million and were down EUR 3.8
million or 11 percent compared to the previous year, most of them due to the transfer of
service stations to the Company's management and others due to lower student labour
costs.
x The costs of fixed asset maintenance services amounted to EUR 24.9 million, an increase
of EUR 4.2 million or 20 percent compared to the previous year, mainly due to higher prices
for cleaning service stations and the increased maintenance of facilities and equipment.
The latter was quite limited in 2020 due to the COVID-19 epidemic. Impact of the
incorporation of Crodux Derivati Dva d.o.o. and E 3, d.o.o. into the Petrol Group amounted
to EUR 1.1 million.
The Petrol Group (EUR)
2021 2020
Index
2021/2020
Cost of materials 29,296,024 27,934,256 105
Cost of services 147,697,919 133,344,297 111
Labour costs 114,341,509 102,856,574 111
Depreciation and amortisation 79,091,758 74,994,167 105
Other costs 54,698,358 26,938,726 203
Operating costs 425,125,568 366,068,020 116

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x The costs of payment transactions and bank services amounted to EUR 12.9 million, which
was EUR 3.3 million or 34 percent more than in the previous year, of which an increase of
EUR 1.8 million is due to the incorporation of Crodux Derivati Dva d.o.o. and E 3, d.o.o. in
the Petrol Group. The reason for the remaining increase is higher sales than in the previous
year and higher prices of petroleum products.
x The costs of professional services stood at EUR 9.4 million in 2021 and were down
EUR 0.5 million or 5 percent compared to the previous year, mainly due to lower costs of
external consultants (M&A projects) and lower student labour costs. Within this, the costs
of new companies in the Petrol Group - Crodux Derivati Dva d.o.o. and E 3, d.o.o. -
increased by EUR 0.8 million.
x Lease payments totalled EUR 8.4 million and were up EUR 3.1 million or 58 percent from
2020, of which EUR 0.9 million are due to the incorporation of Crodux Derivati Dva d.o.o.
and E 3, d.o.o. into the Petrol Group; the reason for the remaining excess is mainly in the
higher costs of leasing computer equipment (dynamics of the division between costs and
investments).
x Amounting to EUR 6.7 million, the costs of fairs, advertising and entertainment increased
by EUR 1,8 million compared to 2020, when we reduced the volume of advertising to a
minimum due to the COVID-19 epidemic.
x The costs of insurance premiums totalled EUR 4.9 million and were up EUR 0.8 million or
18 percent from 2020, mainly due to rising prices in the insurance market.
x Outsourcing costs stood at EUR 4.0 million and were down EUR 0.2 million or 5 percent
relative to 2020.
x Other costs of services totalled EUR 5.0 million and were up EUR 1.6 million or 47 percent
from 2020.
Labour costs totalled EUR 114.3 million and were up 11 percent or EUR 11.5 million
compared to 2020. In line with the measures taken by countries to contain the COVID-19
epidemic, the Petrol Group made use of measures relating to the reimbursement of labour
costs of EUR 0.6 million, while in 2020 this amount amounted to EUR 4.8 million, these effects
are recorded as a decrease in labour costs. Due to the expense of the merger of Crodux
Derivati Dva d.o.o. and E 3, d.o.o., costs increased by EUR 6.3 million, and by EUR 2.7 million
due to the transfer of service stations to the Company's management.
The depreciation and amortisation charge stood at EUR 79.1 million, an increase of 5
percent or EUR 4.1 million relative to 2020. They increased by EUR 5.2 million due to the
merger of Crodux Derivati Dva d.o.o. and E 3, d.o.o. with the Petrol Group, but due to the lower
volume of investments, they decreased in the parent company.
Other costs stood at EUR 54.7 million, which was EUR 27.8 million more than in 2020.
Compared to the previous year, the costs of impairments and write-offs decreased by EUR 1.9
million, while accrued costs increased (onerous contracts for the sale of electricity (on the other
hand, higher other operating revenues), liabilities for biogas plants onerous contracts,
accrued costs of non-compliance with obligations to ensure energy savings and accrued costs
of renewable energy sources biocomponent).
In 2021 we continued with the optimisation of costs and streamlining operations, which is
already reflected in the operations of the Petrol Group.

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Other operating revenue stood at EUR 277.3 million, which was EUR 171.6 million more than
in 2020. Gain on derivatives totalled EUR 269.9 million or 169.8 million more than in 2020.
Other operating expenses stood at EUR 236.6 million, which was EUR 161.6 million more
than in 2020. Loss on derivatives totalled EUR 235.7 million or 161.3 million more than in 2020.
The Petrol Group is exposed to price and volumetric risks arising from trade in energy products
(petroleum products, natural gas, electricity, LPG). The Petrol Group manages price and
volumetric risks primarily by striving to harmonise purchases and sales of energy products,
both in terms of volumes and purchase and sale conditions and thus protects the generated
margin on energy products. Depending on the business model of the energy product, limits
are set that limit the exposure to price and volumetric risks. To protect the price of petroleum
products, the Petrol Group mainly uses derivative financial instruments. The partners are
global financial institutions and banks or suppliers of goods, so the Petrol Group estimates that
the risk of non-fulfilment of concluded contracts is minimal. In electricity trading, the Petrol
Group also concludes derivative financial instruments with financial institutions where the risk
of the non-performance of concluded contracts is minimal, taking into account the accepted
market value limits. The value of financial transactions changes annually according to the
movement of market prices and the need to protect our portfolio.
EBITDA of the Petrol Group broken down by activity
EBITDA in 2021 amounted to EUR 238.1 million, which is 43 percent more than in 2020 and
21 percent more than in 2019, which we managed to achieve by successfully adjusting sales
to market conditions and efficient cost management.
EBITDA in 2021 compared to 2020

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EBITDA in 2021 compared to 2019
Structure of the EBITDA of the Petrol Group in 2021 by activities
Operating profit totalled EUR 159.0 million or 74 percent more than in 2020 and 28 percent
more than in 2019.
Shares of investment income valued according to the equity method amounted to EUR 2.6
million, which is EUR 0.9 million or 26 percent less than in 2020 and 1 percent more than in
the same period in 2019.
Net finance expenses of the Petrol Group stood at EUR 10.2 million, which was EUR 0.5
million more than in 2020 and EUR 6.7 million more than in 2019. In 2021 net loss on exchange
rate differences were up 7.5 million higher compared to the same period in 2020, and net
revenues from derivative financial instruments in EUR 2021 were EUR 5.1 million higher than
in 2020, whereas net interest income was up by EUR 6.2 million. In 2021, the value adjustment
of operating receivables was up EUR 6.0 million compared to the previous year, while
impairments of investments and goodwill were down EUR 2.8 million.
Operating profit before taxes in 2021 totalled EUR 151.4 million or 77 percent more than in
2020 and 19 percent more than in 2019. Net profit realised in 2021 amounted to EUR 124.5
million, which is 72 percent more than in 2020 and 18 percent more than in 2019.
The balance sheet total of the Petrol Group as at 31 December 2021 amounted to EUR 2.4
billion, which is 33 percent more than at the end of 2020. Non-current assets amounted to

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EUR 1.3 billion, which is 23 percent more than at the end of 2020, and current assets
amounted to EUR 1.1 billion, which is 48 percent more than at the end of 2020. Compared to
the end of 2020, current operating receivables increased by EUR 283.9 million. The growth of
balance sheet items was mainly influenced by the incorporation of Crodux Derivati Dva d.o.o.
and E 3, d.o.o. into the Petrol Group and rising energy prices.
Impact of government grants on labour costs, EBITDA and pre-tax profit
10.3 Financial position of the Petrol Group
Statement of the financial position of the Petrol Group
The Petrol Group (EUR million)
2021 2020
2021/2020
Index
Adjusted gross profit 543.4 426.9 127
Labour costs, including government grants 114.3 102.9 111
Labour costs, excluding government grants 115.0 107.6 107
EBITDA, including government grants 238.1 166.6 143
EBITDA, excluding government grants
238.7 161.8 148
Pre-tax profit, including government grants 151.4 85.5 177
Pre-tax profit, excluding government grants 152.1 80.7 188
The Petrol Group (EUR)
31 December 2021
Adjusted*
31 December 2020
2021/2020
Index
Assets
Intangible assets, property, plant and equipment, investment property 1,129,174,349 922,376,264 122
Investments in jointly controlled entities and associates 55,874,127 56,515,407 99
Right-of-use assets 102,621,512 62,401,606 164
Other non-current assets 24,733,320 27,680,805 89
Non-current (long-term) assets 1,312,403,308 1,068,974,082 123
Inventories 178,191,288 140,154,195 127
Operating receivables 650,343,180 366,441,439 177
Cash and cash equivalents 100,226,890 88,674,952 113
Other current assets 142,286,765 127,833,783 111
Current assets 1,071,048,123 723,104,369 148
Total assets 2,383,451,431 1,792,078,451 133
Equity and liabilities
Total equity 908,698,005 826,669,437 110
Financial liabilities 433,812,995 303,431,060 143
Lease liabilities 92,991,633 54,397,111 171
Operating liabilities 5,661,782 727,182 779
Other non-current liabilities 79,870,672 78,184,574 102
Non-current liabilities 612,337,082 436,739,927 140
Financial liabilities 65,958,447 48,766,555 135
Lease liabilities 13,768,130 10,069,352 137
Operating liabilities 690,456,613 437,216,148 158
Other current liabilities 92,233,154 32,617,032 283
Current liabilities 862,416,344 528,669,087 163
Total liabilities 1,474,753,426 965,409,014 153
Total equity and liabilities 2,383,451,431 1,792,078,451 133
*After having newly analysed the contract of gas purchase in the subsidiary, we found that, in line with IFRS 15, goods were actually not
purchased; hence it is more appropriate to disclose the transaction as a short-term loan. The Group thus decreased the value of inventory
and increased the value of financial receivables on 31 December 2020.

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The most important items in the non-current assets consisted of property, plant and
equipment, intangible fixed assets and investment property, which totalled EUR 1.1 million and
were EUR 206.8 million higher than at the end of 2020. Right-of-use assets totalled EUR 102.6
million at the end of 2021, which was 64 percent more than at the end of 2020. Non-current
investments in jointly controlled entities and associates stood at EUR 55.9 million, which was
EUR 0.6 million less than in 2020.
The management of current assets, which accounted for 45 percent of the Petrol Group’s
total assets, is given particular attention. The amount of the current operating assets affects
the amount of borrowing from suppliers and banking institutions. With short-term crediting
ensured both at home and abroad, we are, however, able to respond quickly to changes in the
amount of these assets. Compared to the end of 2020, the balance of operating receivables
as at the last day of 2021 increased by 77 percent.
The value of inventories increased by 27 percent year-on-year. Oil prices were higher at the
end of 2021 than at the end of 2020.
In the area of credit risk management, we closely follow all procedures of credit insurance
companies. The Petrol Group has secured 78 percent of all receivables, which individually
exceed a nominal value of EUR 100,000. We monitor customer payments on a daily basis and,
where appropriate, adopt measures to reduce credit risk. Despite the negative impact on the
economy, payment discipline has not significantly deteriorated so far.
As at the last day of the period, the Petrol Group had EUR 126.6 million in working capital or
EUR 70.2 million more than at the end of 2020 when it had stood at EUR 56.4 million.
Cash flows generated from operations amounted to EUR 177.0 million in 2021, which is EUR
39.7 million more than in 2020. The Petrol Group used own revenues for investment activities,
the payment of dividends and repayment of loans while missing funds were secured from
banks. The net financial liabilities to equity ratio (net D/E ratio) was 0.6 as at the last day of
2021, while at the end of 2020 it had stood at 0.40. The net debt to EBITDA ratio stood at
2.1 at the end of 2021 compared to 2.0 at the end of 2020. The financial leverage ratio stood
at 36 percent at the end of 2021, up from 28 percent at the end of 2020.
Due to the ongoing COVID-19 pandemic, we set a high priority in 2021 to ensuring an adequate
liquidity structure. We took advantage of favourable market conditions and carried out
extensions/refinancing, as well as cancellations of credit lines. When determining the needs
for additional potential debt, we took into account the appropriate net debt to EBITDA ratio.

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Equity, net debt and financial leverage ratio
The Petrol Group’s net investments in
property, plant and equipment, intangible fixed asset and
long-term investments of the Petrol Group
totalled EUR 233.2 million in 2021, of which EUR
192.2 million for the acquisitions of companies Crodux Derivati Dva d.o.o. and E 3, d.o.o. In
2020, we allocated EUR 85.4 million for investments.
The Petrol Group was in a very good business and financial condition before the pandemic.
Despite the difficult business conditions, it will continue to pursue its strategic objective of
ensuring stable operations, including by maintaining an appropriate debt to EBITDA ratio.
A shareholder policy that is based on the long-term maximisation of returns for shareholders
is still one of the cornerstones of Petrol’s development strategy. The Management Board of
Petrol d.d., Ljubljana advocates a stable long-term dividend policy, which best fits the Petrol
Group’s long-term development targets.
Despite the pandemic, Petrol d.d., Ljubljana, paid out the dividend in 2021, amounting to
EUR 22.0 per share, which is the same as in 2020, when the highest dividend to date was
paid.
In 2021, Standard & Poor's Ratings Services reaffirmed Petrol d.d., Ljubljana's “BBB-” long-
term credit rating, its »A-3» short-term credit rating and its “stable” credit rating outlook.
HIGHLIGHTS:
x In addition to the continuation of the epidemic, stable economic growth in 2021 was
accompanied by high growth in the prices of energy products.
x Retail was mainly affected by countries’ measures to restrict movement to contain the
COVID-19 epidemic.
x EBITDA totalled EUR 243.5 million in 2021, which was 46 percent more than in 2020.

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11. Alternative performance measures
To present its business performance, the Petrol Group also uses alternative performance
measures (APMs) as defined by ESMA. The APMs we have chosen provide additional
information about the Petrol Group's performance.
List of alternative performance measures
APM Calculation information Reasons for choosing the measure
Adjusted gross profit
Adjusted gross profit = Revenue from the sale of
merchandise and services – Cost of goods sold
The Petrol Group has no direct influence over global
energy prices, which makes the adjusted gross
profit more appropriate to monitor business
performance.
EBITDA
EBITDA = Operating profit without allowances for
operating receivables and impairment of goodwill +
Depreciation and amortisation charge.
Until the end of 2020, the depreciation of
environmental fixed assets was excluded because
long-term deferred revenue had been created for
this purpose which was reallocated each year to
other operating revenue at an amount corresponding
to the depreciation of environmental fixed assets. In
2020, the depreciation of environmental fixed assets
amounted to EUR 10.0 thousand.
EBITDA indicates business performance and is the
primary source for ensuring returns to shareholders.
EBITDA/Adjusted gross
profit
Ratio = EBITDA/Adjusted gross profit
The ratio is a good approximation of the share of
free cash flows from operating activities in adjusted
gross profit.
Operating costs/Adjusted
gross profit
Ratio = Operating costs/Adjusted gross profit
The ratio is relevant because it concerns the cost-
effectiveness of operations.
Net debt/Equity
Net debt = Current and non-current financial liabilities
+ Current and non-current lease liabilities – Cash and
cash equivalents; Ratio = Net debt/Equity
The ratio reflects the relation between debt and
equity and is, as such, relevant for monitoring the
Company's capital adequacy.
Net debt/EBITDA Ratio = Net debt/EBITDA
The ratio expresses the Petrol Group’s ability to
settle its financial obligations, indicating in how many
years financial debt can be settled using existing
liquidity and cash flows from operating activities.
ROE ROE = Net profit/Average equity
The ratio indicates the Petrol Group's efficiency to
generate net profit relative to equity. Return on
equity also reflects management's performance in
increasing the value of the Company for its owners.
ROCE
ROCE = Operating profit / (Total assets – Current
liabilities)
The ratio shows how efficient the Petrol Group is in
generating profits from its long-term sources of
finance.
Added value/Employee
Added value per employee = (EBITDA + Integral
labour costs)/Average number of employees.
Integral labour costs = Labour costs relating to
Petrol Group employees + Labour costs relating to
third-party managed service stations, which stood at
EUR25.2 million in 2021 and EUR28.1 million in
2020.
This productivity ratio indicates average newly
created value per Petrol Group employee.
Working capital
Working capital = Operating receivables + Contract
assets + Inventories – Current operating liabilities –
Contract liabilities
The ratio reflects operational liquidity of the Petrol
Group.
Financial leverage Financial leverage = Net debt/(Equity + Net debt)
Financial leverage indicates the proportion to which
the Petrol Group's operations are financed through
equity relative to borrowing.
Net investments
Net investments = Investments in fixed assets (EUR
54.7 million in 2021) + Non-current investments (EUR
192.2 million in 2021) – Disposal of fixed assets
(EUR 13.6 million in 2021).
The information about investments reflects the
direction of the Petrol Group's development.

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12. Events after the end of the accounting period

x At its 8th meeting on 17 February 2022, the Supervisory Board of Petrol d.d., Ljubljana
took note of the operations relating to electricity production from renewable sources and
gave its consent to the Management Board of Petrol d.d., Ljubljana to invest in solar power
plants in Knin, Croatia. These are three large solar power plants with a total installed
capacity of 22 MW and with an expected electricity production of 29 GWh, the development
of which was completed in 2021. The solar power plants, with a total investment value
estimated at EUR 17 million, will start producing electricity in early 2023.

x The Petrol Group’s operations are integrated into international energy flows. The war in
Ukraine is also affecting the energy market, which is mainly reflected in rising energy
prices, while energy supplies are currently uninterrupted.

The Petrol Group does not have its own companies or representative offices in Ukraine,
the Russian Federation and Belarus. The share of sales revenue generated by the Petrol
Group in these markets is negligible, and the purchase of energy products in these
markets, except for natural gas, represents a small share in the Petrol Group’s purchasing
portfolio. In 2021 and the first two months of 2022, Russia as a source of supply has
accounted for less than 7 percent as regards Petrol d.d., Ljubljana’s middle distillates
(diesel and extra light heating oil), and as for petrol, we do not import it from Russia.

The largest part of the Petrol Group’s operations with companies from the Russian
Federation is the purchase of natural gas, which takes place through Geoplin d.o.o.,
Ljubljana. For the time being, deliveries from Russia are going smoothly and in accordance
with contractual obligations. Geoplin d.o.o., Ljubljana has a diversified supply portfolio and
will do everything in its power to ensure the uninterrupted supply of natural gas to its
customers.

The Petrol Group closely monitors the situation in both the energy and financial markets.
As a provider of essential services under the Information Security Act, we also carry out
appropriate security measures and activities. For the time being, the Petrol Group’s
operations are running smoothly, we are monitoring the situation through a risk
identification and management system and taking appropriate measures to ensure an
uninterrupted supply of energy.

After analysing the impact of the situation in Russia and Ukraine on our operations, we
estimate that the situation known at the time of preparing the annual report does not affect
the fulfilment of the Petrol Group’s plan for 2022.

x In 2022, energy prices continue their upward progress, to which governments respond with
various regulatory measures in the markets, in which the Petrol Group is active. The effects
of regulation are continuously being considered; however, due to ongoing changes during
the drawing up of the annual report, we are not in a position to be able to precisely assess
the potential impact on the realisation of the Petrol Group’s plan for 2022.







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13. Risk management
The Petrol Group operates in two challenging business activities: trading and energy. Both are
facing significant changes, which require a fresh perspective on the key business model
concepts. In the energy segment, increasing importance is given to energy efficiency, to new
uses of existing energy products and to the development of new ones. There is increasing
awareness of sustainable development, accompanied by tightening regulations. In trading, we
are noticing a shift in the behaviour of end-customers who are becoming more aware, engaged
and digitally skilled.
The Petrol Group is aware of the changes and addresses them in the 2021 2025 strategy.
We are addressing the trends in the energy industry with a comprehensive range of energy
solutions. Thanks to new digital channels, a broader range of energy products and
personalised offer, we will be even closer to our customers, helping them make a transition
from traditional energy sources to cleaner renewable energy. The described changes in the
business environment and related trends bring new risks and opportunities. In its 2021 2025
strategy, the Petrol Group has adjusted its business objectives according to its risk
management policies and its risk appetite.
13.1 Risk management in 2021
In October 2021, the acquisition of the Croatian company Crodux Derivati Dva d.o.o. was
completed. In the last months of the year, integration procedures into the Petrol Group began.
From the point of view of financial risks, we examined the customers of Crodux Derivati Dva
d.o.o. The employees of this company learned about the rules of the Petrol Group in the field
of credit risk management. In addition, we carried out procedures for the incorporation of the
new company into the Petrol Group's credit insurance scheme as of 1 January 2022. In the
area of liquidity risk management, we also paid additional attention to the incorporation of the
new company into the Petrol Group.
In the last quarter of 2021, we witnessed an extraordinary rise in the prices of all energy
products, including petroleum products, gas and electricity. Price growth has a significant
impact on the management of price and volumetric risks in the Petrol Group, so in the last
months of 2021, we paid a lot of attention to the management of these risks.
In 2021 the pandemic was an additional and significant risk management factor with a
sweeping impact on the Petrol Group's operations. The Petrol Group responded to the
pandemic crisis in a comprehensive manner as early as 2020; we continued in the same way
in 2021. Part of the activities is focused on ensuring the health of customers and employees,
uninterrupted operations in changed circumstances and identifying and managing risks. Other
activities have a long-term focus so that the Petrol Group could operate without interruption in
a very different business environment. A report on the impact of the COVID-19 pandemic on
the Petrol Group's operations and risk management is also available in the
chapter Performance analysis of the Petrol Group 2021.
In the second quarter of 2021, the Petrol Group again performed a risk assessment.
According to the new results of the risk assessment, the following financial risks remain among
the most relevant and most probable risks: credit, price and volumetric risks, as well as foreign
exchange risk. In 2021, several activities were carried out in this area. The result is the
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adoption of updates to the methodology for assessing and monitoring risks, the active
operation of committees and the improvement of processes that currently control and monitor
risk management at a global level and contribute to reducing the Petrol Group's exposure to
individual financial risks.
In connection with credit risks, we paid attention to our customers’ solvency and, by
extension, the balance and quality of operating receivables. We have also continued to build
on the solid foundations laid in recent years in terms of the collaterals we hold. As at 31
December 2021, 78 percent of Petrol's trade receivables individually exceeding EUR100,000
were secured through insurance policies, bank guarantees and other appropriate insurance
instruments. In 2019, credit risk management was upgraded as we switched to a new
information system that monitors our partners’ credit risk and supports the process of setting
credit limits. The system was deployed within the parent company in 2019 and at a subsidiary
in 2020. Most other Group companies of major significance transitioned to the new system in
2021, as scheduled.
The Credit Committee continued to actively pursue its mandate. Realising that our partners,
like us, will also face the financial consequences of the pandemic, much attention was paid to
receivables management.
Liquidity of the Petrol Group companies was ensured through the central management and
reconciliation of current cash flows and by managing the Petrol Group's debt. In ensuring the
structural liquidity of the Petrol Group we follow the guidelines set out in connection with the
rating assigned to us by Standard & Poor's Ratings Services. In 2021 our investment grade
BBB- long-term credit rating, A-3 short-term credit rating and our stable credit rating outlook
were reaffirmed by the agency. This continues to provide us with better access to financial
resources and, at the same time, a stable financial position. In 2021 the Petrol Group's
Management of Assets and Liabilities Board continued to monitor liquidity,
foreign exchange and interest rate risks.
The Petrol Group plays an increasingly important role in electricity sales, distribution and
trading and the sale of natural gas, which is why in 2021, a lot of attention was devoted to
credit, price and volumetric risks. Most attention was paid to the sale of electricity to end-
customers, where we completely overhauled the system of monitoring volumetric and price
risks beyond quantity limits (by individual segments). Monitoring volumetric and price risks
through quantity limits was also introduced in electricity production from own sources and in
natural gas sales to end-customers, where we additionally introduced an improved system of
monitoring the credit risks of wholesale partners. In electricity trading, the monitoring of
volumetric and price risks underwent minor overhauls.
In addition to the main financial risks, the most relevant and probable risks include economic
environment risks, business decision-making risks, financial environment risks, process risks,
strategic decision-making risks, information systems risks and interest rate risks. All these risks
were assessed higher in 2021 than in the previous assessment in 2019.
The above activities help us develop a risk-awareness culture to ensure better control over the
risks and high-quality information for decision-making at all operational levels. Risk
management concerns each Petrol Group employee who is, as a result of their decisions and
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actions, exposed to risks on a daily basis while carrying out their work assignments and
responsibilities. The very fact that at the Petrol Group risk management is integrated into all
aspects of business enables us to generate added value for shareholders and maintain the
investment-grade credit rating.
13.2 Strategic outline for risk management at the Petrol Group
In risk management, the Petrol Group pursues a strategic direction of ensuring stable business
growth while accepting moderate risks. We adjust the required rate of return to the expected
risks.
The risks we are willing to take on are those arising from the Petrol Group's development
strategy. It allows further stable business growth and the dynamic development of new
business models. We tread carefully, however, when taking on risks arising from:
x expansion to new activities and markets in line with the strategic outline; and
x operations related to existing activities.
But we are not willing to take on the following risks:
x environment risks;
x risks affecting the safety and health of our staff;
x reputational risks;
x risks of fraud and corruption;
x risk of losing the investment-grade credit rating (arising from the Petrol Group's
operations).
In accordance with this overarching principle, the following strategic risk management
orientations of the Petrol Group were defined:
1. The Petrol Group shall monitor changes in the industry and markets, and proactively adapt
its operations and targets in order to achieve its strategic objectives.
2. New investments of the Petrol Group shall be aligned with its strategic and financial plans,
and the required rates of return shall reflect the risks assumed.
3. The Petrol Group’s human resources policy shall be aligned with its strategic orientations.
The human resources department shall be actively involved in staff development and
training while also monitoring the organisational climate.
4. The Petrol Group shall promote compliance with the law and internal rules and, through its
values and Code of Conduct, seek to build a corporate culture that promotes
lawful, transparent and ethical conduct and decision-making.
5. The Petrol Group shall be mindful of the operational risks it is facing and shall seek to
establish an appropriate process, systemic and IT environment that allows for its strategic
development and reduces operational risk to an acceptable level.
6. The Petrol Group shall secure its energy product sales margins either through natural
adjustments or derivative trading in order to hedge risk and ensure the stability of cash
flows.
7. The Petrol Group shall make sure that its partner portfolio is of high quality and
appropriately dispersed. The Petrol Group shall strive to have its at-risk receivables
sufficiently secured, either by obtaining credit insurance instruments or taking out
insurance.
8. The Petrol Group shall provide for long-term financial stability through sustainable financial
leverage.
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9. The Petrol Group shall manage its short-term liquidity by matching inflows and outflows
and by maintaining adequate credit lines.
10. The Petrol Group shall make every effort to hedge its interest rate risk.
13.3 Petrol's risk model with most relevant and probable risk
Petrol’s risk model consists of an integrated set of 20 risk categories divided into two major
groups: environment risks and performance risks.
Risk categories within the Petrol Group
The last risk assessment was carried out in 2021. According to the results of the assessment,
the following financial risks remain among the most relevant and most probable risks: credit,
price and volumetric risks, as well as foreign exchange risk. To control and manage these
risks, the most rigorous control system possible is required. The Company uses such a system,
which is described in more detail in sections dealing with individual financial risks. In addition
to the main financial risks, the most relevant and probable risks include economic environment
risks, business decision-making risks, financial environment risks, process risks, strategic
decision-making risks, information systems risks and interest rate risks.
The chart below shows the distribution of individual risks according to the latest assessment.
II. Performance risks
II.1. Operational risks
II.2.2. Business decision-making risks
II.1.3. Information system risks II.4.3. Liquidity risks
II.1.4. Security and safety risks II.4.4. Foreign exchange risks
II.1.5. Risks of discontinued operations
I. Environment risks
I.1. Political risks
I.3. Financial environment risks
I.5. Disaster risks
I.2. Economic environment risks
I.4. Legislation and regulation risks
II.2. Strategic risks
II.4. Financial risks
II.1.1. Human resources management and leadership risks
II.2.1. Strategic decision-making risks
II.4.1. Price and volumetric risks
II.3.1. Risks of criminal offences/fraud
II.3.2. Corporate integrity risks
II.1.2. Process risks
II.4.2. Credit risks
II.2.3. Information risks
II.3. Risks of fraud and other illegal acts
II.4.5. Interest rate risks
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Distribution of the Petrol Group's risks according to the latest assessment
Frequency level legend:
1 - the event can be realised less than once every three years;
2 - the event can be realised at least once every three years, but not more often than 2 times a year;
3 - the event can be realised more than 2 times a year, but not more often than once a month;
4 - the event can be realized more than once a month, but not more often than once a week;
5 - the event can be realised more often than once a week.
Importance level legend:
1 - potential damage to operations is less than EUR 50,000;
2 - potential damage to operations ranges from EUR 50,000 to EUR 250,000;
3 - potential damage to operations ranges from EUR 250,001 to EUR 1000000;
4 - potential damage to operations ranges from EUR 1,000,001 to EUR 5,000,000;
5 - potential damage to operations is greater than EUR 5,000,000.
The Petrol Group's risk management matrix with control methods
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In 2021 individual risk categories were managed as follows:
I. ENVIRONMENT RISKS
The Petrol Group protects itself against external environment risks by systematically
monitoring developments in the business environment and responding to them in a timely
manner. The most relevant and frequent risks included in the group of external environment
risks are economic environment risks. Although relevant, disaster risks, which also belong to
this group, occur infrequently. Financial environment risks, legislation and regulation risks and
political risks were also assessed as medium-relevance and lower-frequency risks and were
classified into the second quadrant together with other environmental risks.
Economic environment risks are managed by constantly monitoring competitors and
analysing the operations of electricity, oil and gas companies, as well as by means of market
surveys, benchmark analyses, customer satisfaction measurement, etc.
We also try to identify the financial environment risks through financial planning and
simulations, as well as through cooperation with the financial environment (banks,
financial institutions, investors). These risks are taken into account when preparing a strategic
business plan and are discussed at the Balance Sheet Management Board.
Legislation and regulation risks are managed by proactively engaging with institutions
that are able to amend relevant laws and by analysing the impact of relevant legislative
proposals and changes on the Petrol Group's operations.
II. PERFORMANCE RISKS
Performance risks include operational risks, strategic risks, risks of fraud and other illegal acts,
and financial risks.
II.1. Operational risks
Operational risks include human resources management and leadership risks, process risks,
information system risks, security and safety risks, and risks of discontinued operations.
According to the latest assessment, process risks, followed by information system risks are
the most relevant and frequent of those risks.
Process risks refer to a potential loss resulting from incorrectly defined/set up organisational
processes, their ineffective/inefficient execution and unresponsiveness to changes in the
Company's external/internal environment. The Petrol Group therefore actively reviews all of its
business processes. At the same time, we are developing a process architecture that will
determine the owners and administrators of individual processes.
Nowadays, information infrastructure is also becoming increasingly important. The risk of
information systems not being properly set up, not functioning correctly, not being sufficiently
secure or being prone to interruptions, or of errors occurring in the collection and processing
of data, or of the systems not being responsive to changes in the external and internal
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environment or to the needs of users, is extremely relevant, which is why we pay considerable
attention to this field. The projects addressing this risk include the replacement of the Petrol
Group's ERP system and the deployment of a new CRM system, which was implemented in
2019 in the parent company, in 2020 in a subsidiary in Croatia, while other major companies
in the group transitioned to the new system in 2021, as scheduled. In 2022, some other
subsidiaries will join the new system.
Human resources management and leadership risks are controlled through the regular
measurement of organisational climate across the Petrol Group, the annual interview system
and the assessment of management skills, the measurement of the quality of internal services
and the adopted human resources strategy. The Petrol Group is increasingly aware of the
importance of human resources, as they became more relevant in the last risk assessment.
II.2. Strategic risks
Strategic risks are closely connected to operational risks. They include strategic decision-
making risks, business decision-making risks and information risks, with the latter being the
most relevant and frequent, according to the latest assessment. They are followed by strategic
decision-making risks, while the risks of providing information were ranked lower.
Business decision-making risks are managed by implementing and improving various
organisational rules and by regularly monitoring operations and reporting to various
stakeholders. Strategic decision-making risks are mitigated by means of a clearly defined
strategy, by exercising control over its implementation and via annual conferences.
II.3. Risks of fraud and other illegal acts
The risk of fraud and other illegal acts is split into two subgroups, i.e. the risk of criminal
offences/fraud and the corporate integrity risk. The risks of criminal offences/fraud include
fraud committed by management, illegal acts, fraud, theft, abuse of employees and third
parties, the unauthorised use of resources, intentional damage and violent illegal acts. The
management of the risks of criminal offences/fraud requires constant supervision and control
as they are assessed to be of high frequency and low relevance.
The risk of corporate integrity breach refers to the incompatibility of the Company's
operations with the law, Petrol's Code of Conduct, other rules, applicable recommendations,
internal regulations, good business practices and ethical principles. The management of this
risk includes the application of the compliance system (Rules on the Functioning of the
Compliance Assurance System).
Petrol is exposed to a higher risk of fraud due to the nature of its operations, which include
point-of-sale operations involving cash registers and sales of petroleum products. Pursuant to
the Code of Conduct and internal regulations, a zero-tolerance policy for fraud has been
adopted within the Petrol Group.
In charge of the comprehensive management of the risk of fraud is a task force that has put
together a fraud register, assessed the risk of certain acts of fraud being committed, catalogued
existing preventive and remedial checks, and drew up actions for the containment of fraud.
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The responsibility to detect and investigate fraud within the Petrol Group is in the hands of
Corporate Security and Control of Operations, a professional service consisting of a qualified
team of investigators.
II.4. Financial risks
According to the assessment of frequency and relevance, financial risks have the highest
rankings. As a result, the Petrol Group focuses in particular on this risk category. This is
evident from detailed risk management procedures including clearly specified systems of
limits, appropriate monitoring levels and reporting on exposure to individual financial risks, as
well as the active involvement of boards and committees tasked with monitoring and controlling
individual financial risks. The financial risk management system is subject to continuous
assessment and improvement. Specific activities in this area are presented below in sections
dealing with individual risks.
The most relevant and probable financial risks include credit, price and volumetric risks, as
well as foreign exchange risks, with liquidity and interest rate risks having a slightly less
prominent profile. Detailed information about exposure to individual types of financial risk and
disclosures about financial instruments and risks are provided in the notes on the financial
statements, specifically in the financial instruments and risk management chapter.
Price and volumetric risks and foreign exchange risks
The Petrol Group's business model includes energy products, such as petroleum products,
natural gas, electricity and liquefied petroleum gas, exposing the Group to price and volumetric
risks and to foreign exchange risks arising from the purchase and sale of these products.
The Petrol Group purchases petroleum products under international market conditions and
pays for them mostly in US dollars, while sales take place in local currencies (mainly in EUR).
This exposes the Petrol Group to both the price risk (changes in the prices of petroleum
products) and the foreign exchange risk (changes in the EUR/USD exchange rate) while
pursuing its core line of business. The Petrol Group manages volumetric and price risks to
the largest extent possible by matching the suppliers’ terms of procurement with the terms of
sale applying to customers. Any remaining open price or foreign exchange positions are
closed through the use of derivative financial instruments, in particular commodity swaps in
the case of price risks and forward contracts in the case of foreign exchange risks.
Trading in electricity exposes the Group to price and volumetric risks. In the last quarter of
2021, the price of electricity supplied in Hungary in 2022 increased by about 63 percent, and
since the beginning of 2021 by more than 307 percent. The main reason for the high rise in
prices is the high rise in natural gas prices and emission allowance prices, as well as the
closure of nuclear power plants in Germany. Such a high increase in energy prices significantly
increases the price risks managed by the Group through a set of limit systems defined
according to the business partner, risk value and volumetric exposure, and through appropriate
monitoring and control processes. In addition, the Group regularly monitors the adequacy of
the limit systems used, which it renews and supplements if necessary.
In addition to the risks arising from changes in the EUR/USD exchange rate, the Petrol Group
is exposed, to some degree, to the risk of changes in other currencies, which is linked to doing
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business in the region. The Group monitors open foreign exchange positions and decides how
to manage them on a quarterly basis.
Credit risks
Credit risk was assessed as the most important among financial risks in 2021, which is also
due to the impact of the pandemic. The Petrol Group was exposed to it in connection with the
sale of products and services to natural and legal persons and manages it with the measures
outlined below.
The operating receivables management system provides us with efficient credit risk
management. As part of the regular receivables management processes, we constantly and
actively pursue the collection of receivables, a process that was even more intense since
the beginning of the COVID-19 pandemic due to the exceptional economic situation. We refine
procedures for approving the amount of exposure (limits) to individual buyers and try to
maintain the range of first-class credit insurance instruments as a requirement to approve sales
(receivables insurance with credit insurance companies, bank guarantees, collaterals,
corporate guarantees, securities, pledges). In the previous year, this was a significant
challenge. At the beginning of 2020, the Petrol Group introduced a new insurance scheme
for keeping track of the Group’s needs in the field of credit risk insurance as market conditions
evolve. A great deal of work is dedicated to the management of receivables from all customers
in Slovenia, and significant attention is devoted to the collection of receivables in SE Europe
markets, where the solvency and payment discipline of the business sector differs from that in
Slovenia. Receivables are systematically monitored by portfolio, region and organisational
unit, as well as by credit risk assessment, level of insurance and individual customer. In
addition, we introduced centralised control over credit insurance instruments received and
centralised the collection process.
Due to the COVID-19 pandemic and the resulting significant drop in economic activity,
companies were faced with liquidity shocks leading to our customers having a higher credit
risk. In 2021, the Petrol Group continued to closely monitor indicators of increased risk and
had intensive communication with its customers. At the operational level, all companies in the
Petrol Group still closely monitor the balance of receivables on a daily basis and actively
cooperate with customers in recovery.
Despite the above measures, the Petrol Group, too, is unable to fully avoid the consequences
of bankruptcies, compulsory composition proceedings and personal bankruptcies.
We consider that credit risks are satisfactorily managed within the Petrol Group. Our
assessment is based on the nature of our products, our market share, our large customer
base, the vast range of credit insurance instruments, a higher volume of secured receivables
and a low level of overdue receivables. 68 percent of receivables from legal entities are
secured, with credit insurance and offsetting against trade liabilities being the most widely used
insurance instruments (together accounting for 90 percent).
Liquidity risks
The Petrol Group has been assigned a BBB- long-term international credit rating, an A-3
short-term credit rating and a stable credit rating outlook by Standard & Poor's Ratings
Services, which reaffirmed the ratings on 9 April 2021. This investment-grade rating enables
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us to tap international financial markets more easily and at the same time represents an
additional commitment towards successful operations and the deleveraging of the Petrol
Group. We are following the relevant S&P methodology in the management of liquidity risks.
In 2021, the average petroleum product prices were higher year-on-year, meaning that slightly
more working capital of the Petrol Group was needed. Despite the constant growth of energy
prices, the liquidity position of the Petrol Group remained solid, both at the level of the Group
and at the level of individual subsidiaries. With an appropriate structure and scope of long-term
and short-term credit lines, we smoothly ensured the liquidity adequacy of the Petrol Group.
Even in the event of a deterioration in the economic situation, the current volume of credit lines
ensures uninterrupted operations and an adequate liquidity structure of the Petrol Group
according to the criteria of the S&P credit rating agency.
Due to the continuation of the COVID-19 pandemic, we pay great attention and prudence to
cash flow management, especially regarding the planning of cash inflows from layaway
sales, this being the main source of credit risks and, consequently, liquidity risks. Upon the
acquisition of Crodux Derivati Dva d.o.o., we paid additional attention to internal liquidity risk
management and liquidity management within the companies in the Group.
Despite the decline in sales due to measures to contain the COVID-19 pandemic, the Petrol
Group settles all its liabilities as they fall due. This is possible thanks to its relatively low debt
levels and strong liquidity position.
Interest rate risks
The Petrol Group regularly monitors its exposure to the interest rate risk. 82 percent of the
Group's non-current financial liabilities contain a variable interest rate that is linked to
EURIBOR. The average values of EURIBORs in 2021 were lower than the average values in
2020. EURIBOR remains historically low (negative).
To hedge against exposure to the interest rate risk, a large portion of variable interest rates is
transformed into a fixed interest rate using derivative financial instruments, thus protecting our
net interest position. In 2021, in connection with a new long-term loan with a variable interest
rate, we took out new interest rate insurance in the total amount of EUR 200 million with the
same maturities as a long-term loan. The Petrol Group thus has all long-term financial liabilities
with a variable interest rate secured by IRS collateral.
HIGHLIGHTS:
x According to the new risk assessment results, credit, price, volumetric and foreign
exchange risks remain among the most important and most probable risks.
x Risk management is included in all aspects of the Petrol Group's operations.
x We pursue the strategic direction of ensuring stable business growth while accepting
moderate risks.
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14. Business activities
14.1 Sales of petroleum products
In 2021 the COVID-19 pandemic was again the most significant factor affecting the Petrol
Group's operations in the field of petroleum product sales. To contain the pandemic, countries
took a number of measures to restrict movement, which was negatively reflected in the sales
of petroleum products.
In 2021, we sold 3.1 million tons of petroleum products, which is 4 percent more than in 2020
and also 4 percent more than planned. 45 percent of our sales were generated in Slovenia, 34
percent in EU markets, and 21 percent in the EU markets. Furthermore, 44 percent of the sales
were generated in retail and 56 percent in wholesale operations.
The Petrol Group's petroleum product sales in the 2018 2021 period
x Retail
At the end of 2021, the Petrol Group’s retail network comprised 592 service stations. 317 in
Slovenia, 202 in Croatia, 42 in Bosnia and Herzegovina, 16 in Serbia and 15 in Montenegro.
Complementing the services provided at service stations are 156 car washes, over 200 bars
and Fresh restaurants, charging points for electric vehicles and TIP STOP quick-service
facilities.
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Expansion of Petrol’s service station network in the 2018 2021 period
With its 318 service stations, the Petrol Group has a 56 percent share of the Slovenian market
in terms of the number of service stations. Its competitive advantage consists of having a
leading position in terms of transit routes, with particular emphasis on motorway locations and
key urban and border locations. Petrol's main competitor is the company OMV, which has a
20 percent market share in terms of the number of service stations. MOL has a 10 percent
market share in Slovenia. In 2021, the acquisition of OMV points of sale by MOL took place,
which means that it will become our second-largest competitor with a 29 percent share.
The COVID-19 pandemic also had a significant impact on the financial year. Various measures
have led to the closure, partial closure or restriction of the provision of certain services. This
was partly reflected in the operation of car washes and bars, as well as the supply of freshly
prepared food. The effects of the pandemic varied according to the market. From the second
half of September, visits to points of sale and sales on the Slovenian market were also
influenced by the fulfilment of the RVT condition.
In accordance with the changed situation, various measures were taken to ensure user-friendly
access to the offer of goods and services. The use of mobile shopping solutions has also
increased, i.e. the “Na poti” mobile app. In order to adapt to the situation, control costs, access
to the supply of goods and services, the opening hours have also been adjusted, and some
methods of providing services have also changed.
With the merger of Crodux Derivati Dva d.o.o. we increased our market share in the Croatian
market from 13 percent to 23 percent, thus consolidating the brand's presence and position in
this market. INA remains our biggest competitor, followed by other companies such as Lukoil,
Tifon and some smaller ones. We have started the implementation of the integration process,
within which all the necessary procedures for the merger and unification of business processes
will be carried out. In Bosnia and Herzegovina, Petrol has almost a 4 percent market share
in terms of the number of service stations. Its major retail competitors include Nestro Petrol,
Energopetrol and the Nešković Group. In Montenegro, Petrol has nearly 13 percent of the
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market in terms of the number of service stations, its major competitors being Eko and Lukoil.
In Serbia, the companies NIS, Lukoil, Knez Petrol and Mol have the largest retail networks.
The reorganisation of the Petrol Group also had a more visible effect on the strengthening of
retail operations, which is reflected in even stronger market integration, a regional approach
and the standardisation of business processes.
“NA POTI” mobile application
Similar to 2020, 2021 was marked by the COVID-19 pandemic and measures to prevent the
spread of the virus. In 2021, the “Na poti” application recorded the highest growth in monthly
active users to date as they recognised the convenience and usefulness of the application in
a period when reducing contacts was very important. In particular, the application proved to be
an excellent alternative method of payment with the introduction of the RTV condition in
September, which dictated special requirements for visiting retail space.
In January 2021, the application was upgraded with the 3D secure 2.0 protocol for additional
payment authentication in accordance with the new EU directive. The development of the
application in 2021 focused mainly on the Croatian market, where from June 2021 onwards,
the application can be used to pay for Coffee-to-go. This was followed by the collection of Gold
Nuggets and rewards in the form of free coffee in Croatia and Slovenia. The number of pick-
up points in Slovenia where users can collect orders for Hip purchases has also increased,
from 36 to 69.
In 2021, a total of 569,325 transactions were performed via the “Na poti” application in Slovenia
and Croatia. Compared to 2020, the total number of transactions increased by more than 70
percent. Most transactions were made to pay for Coffee-to-go followed by payments for fuel,
car wash and food payments for Fresh and HipShop products. In 2021, the application
recorded over 65,000 monthly active users and more than 12,800 paying users per month,
which together generated 119 percent more margin than the year before.
x Sales to business customers and the public sector
We also put the needs and wishes of our customers first when it comes to our business
customers and the public sector, which is ultimately reflected in the operation of the entire
organisation and the Company's operations. Concern for establishing and nurturing customer
relationships is reflected in our day-to-day operations.
We consider cooperation based on understanding, flexibility and helpfulness as a fundamental
principle. We are becoming a connecting link in the wider ecosystem of sales segments and
industry. With a comprehensive offer of energy sources and solutions, we offer existing and
new customers support in the transition from traditional energy sources (fossil fuels) to cleaner,
environmentally and healthier, renewable energy sources. We design a personalised offer for
existing and new customers according to their needs.
The high level of quality of the products, which is made possible by the broad network of sales
representatives, appropriate technical and advisory support, and efficient logistics, is an
important competitive advantage. Our organisation allows us to be fast, efficient and, above
all, flexible in our operations, which is especially evident during the pandemic, which has
greatly changed the shopping habits of our business customers.
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We accept the results of measuring the satisfaction of our customers as an opportunity for
improvement in the direction of providing an excellent user experience.
HIGHLIGHTS:
x The competitive advantage of our retail network is its leading position on transit routes,
with an emphasis on motorways, key urban and border locations.
x The “Na poti” app has proven to be a great alternative payment method when introducing
the RVT condition.
14.2 Sales of merchandise and services
Sales of merchandise include sales of automotive materials, foodstuffs, haberdashery,
tobacco products, lotteries, coupons and cards, coffee on the go and other merchandise. In
2021, the Petrol Group generated EUR 487.2 million in revenues from the sale of merchandise,
which is 9 percent more than in 2020.
In the Slovenian market in 2021, we generated EUR 394.3 million in revenues from the sale
of merchandise, which is 6 percent more than in 2020. We achieved the best results in the
sale of tobacco products, lotteries, coupons and cards, groceries and hot beverages (Coffee-
to-go). The offer at Petrol's points of sale is constantly changing and being supplemented, as
we want to follow the needs of visitors by quickly adjusting our sales range.
In the markets of SE Europe, we generated EUR 92.7 million in revenues from the sale of
merchandise in 2021, which is 21 percent more than in 2020 and 24 percent more than
planned. Revenues are 14 percentage points higher due to the acquisition of Crodux Derivati
Dva d.o.o. We achieved the best results in the sale of tobacco products, food products and
products from the Fresh offer.
Petrol’s websites Petrol.eu, Moj Petrol and eShop
Following the publication of the revamped websites petrol.si and Moj Petrol, which we have
been upgrading since 2019, we focused mainly on the development of the eShop online store
in 2021. It will join Petrol's digital ecosystem in 2022. The development took place entirely with
internal resources, which enabled the development to be completely tailored to the needs of
the Company. The revamped store will offer a modern user experience of online shopping and
round off Petrol's websites.
As part of the Tokyo 2020 Summer Olympics, which took place in the summer of 2021 due to
the pandemic, a campaign was held to collect Gold Points, which were converted into funds
for young promising athletes. The collection of Gold Points took place at physical points of sale
and through digital channels - the petrol.si website and the “Na poti” application. For this
purpose, an adder of collected points and a form for submitting Gold Points were developed.
Thanks to our management and optimal execution of procurement and sales processes, as
well as the management of the selling space for all sales channels, we are in a position to offer
customers the products of their choice at the right time and in the right place. In conducting
our business, we comply with all legal provisions.
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Services include revenues from the storage and transhipment of petroleum products, rents for
business premises and catering facilities, transportation, car wash services, revenues from
Petrol Club cards and other services. In 2021 the Petrol Group generated EUR 44.8 million in
revenue from the services related to oil and merchandise sales, which is 8 percent more than
in 2020.
Petrol SKI Skiing with Petrol
In the 2020/2021 season, we upgraded the system and added Axess cards, thus enabling
cooperation with all major ski centres in Slovenia and abroad. Last season was again partly
marked by the lockdown of the state and closure of borders; thus, skiing was only allowed
within the countries and only partly in December, February and part of March. Nevertheless,
including December, we recorded record sales results, namely:
x in 2021, more than 50,000 ski passes were sold at the points of sale of Petrol d.d. Ljubljana;
x in Bosnia and Herzegovina, we started selling at the Bjelašnica Ski Centre;
x in December 2021 we started cooperating with the Platak Ski Centre (Rijeka);
x in 2022 we plan to start sales at Crodux Derivati Dva d.o.o. and at the points of sale of
Petrol d.o.o Beograd and Petrol Crna gora MNE d.o.o.
HIGHLIGHTS:
x The offer at Petrol's points of sale is regularly changed and supplemented, as we want to
follow the needs of visitors by quickly adjusting our sales range.
14.3 Sales of other energy sources
Sales of liquefied petroleum gas
Liquefied petroleum gas (LPG) is considered a top-quality and one of the cleanest fossil fuels.
It is characterised by economical consumption and low costs, and it also helps mitigate
negative environmental impacts. LPG can be used for vehicle propulsion, heating, industrial
use, in gas bottles for home use and for electricity generation. In EU Directive 2014/94, it has
been declared an energy product of the future for transport purposes.
The Petrol Group is engaged both in the LPG supply and in the construction and
management of LPG distribution networks. LPG operations include: gas sales through
networks and gas storage tanks, autogas sales and bottled gas sales. In 2021, autogas was
sold at 231 service stations and also wholesale.
The selling prices of liquefied petroleum gas are set freely in Slovenia. The same is true
for Croatia, where they follow a formula that is based on Platts Mediterranean LPG prices. In
Serbia, too, LPG prices are set freely. The predominant basis is the Argus daf Brest prices,
with other price sources also currently being considered in the pricing.
LPG sales are becoming increasingly important for the Petrol Group, seeing that regional
infrastructure, which is a basis for establishing presence in the wider SE Europe region, is
now being built.
x In Slovenia, the Petrol Group operated five LPG supply concessions in 2021.
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x In Croatia, Petrol d.o.o. Zagreb, concluded contracts for the supply of LPG in the cities of
Šibenik and Rijeka. Liquefied petroleum gas is supplied to customers also through LPG
storage tanks, at service stations (autogas) either within or outside the Group's network
and in gas bottles that are sold via a broad distribution network. In 2021, we further
expanded our business through our own retail network and through wholesale operations.
x In Serbia, Petrol LPG d.o.o. Beograd continued to expand in the region by exporting LPG
to Macedonia, Montenegro, Bosnia and Herzegovina, Kosovo, Albania, Bulgaria and,
indirectly, to Greece, which was also reflected in the growth of market shares in individual
markets. We operate on the Serbian market with four barges and two tugs.
The COVID-19 pandemic also had a major impact on LPG sales in 2021. As a result of
measures related to the containment of the virus, the demand for autogas has fallen sharply,
while sales through gas storage facilities for heating and industrial consumption have not
changed significantly due to the pandemic. The price of LPG rose sharply in the last part of
2021, more than the price of conventional fuels, but still significantly less than the price of
natural gas and electricity. The acquisition of Crodux Derivati Dva d.o.o. in 2021 did not
significantly affect LPG sales, as Petrol d.d. Ljubljana acquired Crodux Plin d.o.o. in 2019 and
sold natural gas and cylinders for the needs of Crodux Derivati Dva d.o.o. through Petrol d.o.o.
Zagreb.
In 2021, the Petrol Group sold 141.2 thousand tons of LPG, which is 5 percent less than in
2020 and 18 percent less than planned, mainly due to reduced sales of Petrol LPG d.o.o.,
where due to logistical problems we had to deliver goods by rail tanks and not through barges
in the Smederevo terminal, which reduced our competitiveness in the market. Lower sales of
LPG as a fuel are also affected by lower mobility (measures to contain the COVID-19
pandemic) in both Slovenia and Croatia.
HIGHLIGHTS:
x LPG sales are becoming increasingly important for the Petrol Group, seeing that
infrastructure is being built in the wider region of SE Europe.
14.4 Energy and environmental systems
2021 was a year of major substantive and organisational changes for Energy and Solutions
and above all a confrontation with the exceptional rise in energy prices in the second half of
the year.
At the beginning of the year, the Petrol Supervisory Board approved the new Petrol Group
Strategy for the period 2020 2025, which outlined the path of the energy transition to a
green future. A large part of this transition is assumed by Energy and Solutions with its products
and team of experts. That is why the logical next step was related to the project of the new
organisation of the Company, which will allow it to face the challenges of the energy transition
and the market. One of the goals is the consolidation of this area, which opens up many
opportunities for integration, synergies and the introduction of new, integrated solutions not
only in the energy sector but also more broadly within Petrol.
The project of the new organisation started at the beginning of June 2021 and is based on
the product as the holder of content work and EBITDA, and on the matrix system of cooperation
and involvement of all support services. In this way, we want to ensure the highest level of
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professionalism, take advantage of the concentration of knowledge by individual services and
increase business transparency.
An important substantive shift is also the extension of product management to the area of
three strategic key Petrol markets: Slovenia, Croatia and Serbia. We are also continuing our
activities in the management of small hydropower plants in BiH. More details are presented
below in a comprehensive overview of all products, business indicators and business
opportunities according to the potential of individual markets.
The second half of 2021 was marked by exceptional growth in electricity and natural gas
prices, where some daily prices reached 6 to 8 times the previous long-term averages. As the
operations are tied to stock exchange prices, and the models are mainly based on leases and
different groups of customers, we recorded a strong impact on new contracts and the
consequent public response. The changes also raised questions about the current way of
working, risk-taking, leasing and various forms of partnerships. In particular, the rise in energy
prices has sharply increased the demand in all customer segments (end-customers, business
customers and the public sector) for renewable energy solutions (especially solar, surplus
storage, potentially hydrogen).
In the last quarter of 2021, in addition to the challenges with energy prices, the DOM project
should be highlighted, where together with our external consultants Horvath&Partnerji, we set
a comprehensive strategy for the development of sales of energy solutions to end-customers.
Our ambitions are great, and so are our commitments.
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Energy solutions
x Systems for the energy and environmental management of buildings
The Energy Efficiency Directive (2012/27/EU) establishes a number of measures in the field
of energy efficiency, including the leading role of the energy renovation of public
sector buildings, which is to serve as an example for other stakeholders. In this context, the
Directive requires that, as from 1 January 2014, 3 percent of the total floor area of buildings
owned and occupied by public sector entities shall be renovated each year. The Directive was
transposed into Slovenian law by the Energy Act (Official Gazette of the Republic of Slovenia,
No. 17/14).
Energy performance contracting is also one of the key measures under the Energy Efficiency
Action Plan (AN-URE 2020) and the implementation of the Operational Programme for the
Implementation of the EU Cohesion Policy in the 2014 2020 period . That way, private
capital is included to a greater extent in the financing of energy efficiency measures, multiplying
public investments and resulting in higher energy savings per unit of investment incentive.
In Slovenia, Petrol carries out energy performance contracting services for buildings in the
narrow and wider public sector. Energy performance contracting is defined as a contractual
reduction of energy costs. It is more than just a financing method. It is a contract model that,
in addition to designing and implementing (construction and technological) actions, also covers
the financing, the management and supervision of operation, servicing and maintenance, the
elimination of defects, as well as the encouragement of consumers towards efficient energy
use. Energy performance contracting is a method of contract-based reduction of energy costs
in which the operator provides a range of measures necessary for the efficient use of energy
on the client's premises, with the client undertaking to pay the agreed amount for these
services (reduced energy consumption and the provision of comfort), taking into
account contractual penalties, if any, in case the agreed results or savings are not achieved
(no service - no payment). The basis is a contract, concluded for the agreed period between
the owner (or manager) of the building, i.e. the client, and the contractor, i.e. energy service
company (ESCO).
In 2021, despite the aggravated market conditions, we successfully carried out two major
projects:
x the comprehensive energy renovation of public buildings at the location of the Technical
School Centre Maribor (2 buildings with an area of 12.4 thousand m
2
),
x the comprehensive and partial energy renovation of buildings in the Municipality of
Ljubljana (EOL-3) in the scope of 19 buildings and an area of 52.5 thousand m
2
.
By the
end of the year, 5 facilities with an area of 8.5 thousand m
2
had been fully completed and
management assumed, while the others, which were implemented in 2021, will be
completed in 2022.
In 2021 we carried out energy renovation and assumed the management of 7 buildings with a
total area of 20.9 thousand m
2
.
In 2021 we implemented energy performance contracting services at 348 buildings with a total
area of 1 million m
2
, which is equivalent to approximately 86 office buildings of Petrol at
Dunajska 50 in Ljubljana.
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In addition to the EOL-3 contract, further 14 buildings in Slovenia were prepared in 2021 for
the performance of projects to be implemented in 2022. Projects that are going to be
implemented on the Slovenian market in 2023 and 2024 are already in the pipeline.
x Water supply systems DISNet-WS (Digital Intelligent Smart Networks Water
Supply)
Digital transformation has become a reality in our country and in the world. It changes the
structure of national economies, affects macroeconomic categories and radically changes the
conditions for the management and operation of companies. The key challenge for any
decision-maker is to have all the information available at all times to make the right decision.
The need for a new management information concept follows from this challenge, which
enables a comprehensive overview of the operation of infrastructure (water supply) systems
of the urban water cycle and rapid, proactive action.
Digitalised management of the water supply system, together with the establishment of
performance indicators, helps to improve operational energy and environmental performance,
the effectiveness of managing non-revenue water (NRW) and water losses. Improved
efficiency of the water supply system ensures greater operational safety and reduces the risks
of ensuring the conformity and wholesomeness of drinking water channelled from the water
source to the customer's point of consumption. Improved processes of providing drinking water
and their management contribute towards decreasing greenhouse gas emissions while also
supporting adaptation to the effects of climate change (for example by reducing water losses,
integrating low-energy solutions, water reuse).
The challenges faced by critical infrastructure - water supply system operators in the new
situation indicate an increasing need for the digitalisation of the operation and management of
water supply systems. The processes carried out by the DISNet-WS Group at our customers
have proven to be an effective measure and are recognised by customers as a key part of their
management process.
In 2021, we successfully completed the project of expanding the digitalisation of the telemetry
of the water supply system managed by Komunala Novo mesto from the originally completed
one in the area of central Dolenjska, also in the area of Suha Krajina.
We also successfully continued working with all our strategic partners: JP VOKAS Ljubljana,
KP Velenje, JP Mariborski vodovod and JP Komunala Kranj. Despite the restrictions on
movement, in 2021 together with Petrol d.o.o. Croatia we successfully launched one of the
largest digitalisation projects in the region, with a focus on reducing water losses, Vodovod
Slavonski Brod, which is among the 10 largest in Croatia. At the end of the year, we were
shortlisted for the cohesion project for the expansion of the B water supply system in Pomurje.
In November 2021, together with our partner in Croatia, Međumurske vode Čakovec, we
presented the successfully completed first project to establish a digital twin water supply
system in Croatia at the international conference HGViK (Hrvatska grupacija vodovoda i
kanalizacije).
We provide DISNet-WS services in 7 countries in the region (Slovenia, Italy, Croatia,
Bulgaria, Romania, Montenegro and Bosnia and Herzegovina). We cooperate with 15 major
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drinking water supply systems (Ljubljana, Maribor, Kranj, Velenje, Murska Sobota, Novo
mesto, Ptuj, Čakovec, Slavonski Brod, Novara, Arad, Sofia, Podgorica…), as well as some
smaller ones.
We support our partners by digitalising services in real time, improving the efficiency of
operation and management on almost 12 thousand km of water supply network, with more
than 1.32 million users and more than 340 thousand water metres, which together produce
and distribute more than 130 million m
3
drinking water per year. In doing so, we maintain water
losses at the achieved level, which we consider to be a great success. Based on our
references, we joined the project at the end of 2021, with which we want to reduce water losses
in one of the largest water supply systems in the region by approx. 1.7 million m
3
.
x Wastewater treatment
In modern times, a clean environment is becoming increasingly important, and wastewater,
which can greatly pollute the environment when it is untreated, has a major impact. In the
Petrol Group, we are aware of the significance of the technology used in wastewater treatment,
which has to be environmentally friendly and cost-effective. We provide wastewater treatment
services both for our own needs and for the market.
Yearly operational monitoring performed by authorised institutions indicates that all machinery
in the Petrol Group has been operating in compliance with legislation and achieved cleaning
efficiency.
With the epidemic, wastewater treatment plants proved to be one of the key economic activities
allowing the smooth performance of obligatory public utility services, the health care system,
food production and, last but not least, the normal living of people during the lockdown
measures. Despite the considerable presence of the virus in wastewater and the resulting high
exposure of our employees, we carried out the process and work at all locations continuously
and without major problems.
In 2021 the Petrol Group operated four concessions for the public utility service of municipal
wastewater treatment. The capacity of the treatment plant in Murska Sobota is 42,000
population equivalents (PE), in Sežana 6,000 PE, in Ig 5,000 PE and in Mežica 4,200 PE.
Petrol also managed industrial waste treatment plants at Vevče Paper Mill and Paloma. As
an important member of the company Aquasystems d.o.o., Petrol d.d., Ljubljana is also
involved in the treatment of municipal wastewater in the municipality of Maribor, the capacity
of which is 190,000 PE.
In 2021, after obtaining an environmental permit, we started the activities of making the Ihan
Mud Dryer operational again. The dryer has an annual drying capacity of 8,000 tons of wet
sludge. With its relaunch, we will be less dependent on waste collectors and other factors on
the waste market and increase sludge treatment in Slovenia, thus reducing exports.
In 2021, a total of 3.6 million m
3
of municipal wastewater was treated at four municipal
wastewater treatment plants, and 1.6 million m
3
of industrial wastewater was treated at two
industrial wastewater treatment plants. At Petrol's points of sale, we operated 52 small
treatment plants and pumping stations.
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x District energy systems DISNet-DH (Digital Intelligent Smart Networks District
Heating)
Representing a large market growing at 4 percent a year, district heating plays a vital role in
achieving the transition to a low-carbon company. Many governments have committed
themselves to using more sustainable energy sources to combat climate change. Heat
production is one of the major energy consumers; therefore, improving efficiency in this area
is one of the key goals.
In order to achieve the new ambitious EU energy and climate targets for 2030 laid down in
the EU Clean Energy Package (Winter Package), which is aligned with the Paris Agreement
and the EU’s long-term strategy of achieving carbon neutrality, the main pieces of the EU
energy legislation had to be amended. With a 32 percent share of renewable energy and a
32.5 percent improvement in energy efficiency, EU aims to reduce greenhouse gas emissions
by 43 percent. The European Green Deal of December 2019 and the EU Recovery Plan from
the COVID-19 pandemic (priority green technology investments as part of the Economic
Recovery Plan) classified district heating and cooling, and the development of energy
production from renewable energy sources (RES) and RES-based heating/cooling among the
most important areas.
Technology plays a crucial role in the management of district heating networks, in particular
the Internet of Things (IoT), advanced analytical tools and machine learning models. Our
services help customers optimise investments in the development and refurbishment of district
energy systems and reduce operating costs. The key “operations” in the management and
control of the operation of district energy systems and water supply systems are the forecasting
of quantities and the optimisation of production capacities.
DISNet-DH services contribute to boosting energy and environmental performance in 9
countries in the region (Slovenia, Austria, Italy, Croatia, Bosnia and Herzegovina, Serbia,
Bulgaria, Romania and Russia). We are partners with 27 major district energy systems
(Ljubljana, Velenje, Maribor, Vienna, Bolzano, Zagreb, Osijek, Sisak, Tuzla, Belgrade, Novi
Sad, Sofia, Plovdiv, Arad). We help our customers optimise the production, distribution and
consumption of a total of more than 17 GW of thermal power in real-time.
In 2021, we completed the project of upgrading the thermo-hydraulic model for the analysis of
the district heating system of the Serbian Kraljevo Heating Plant. The S&U project
(maintenance and upgrade) for the Novi Sad Heating Plant has been completed. In the second
quarter of 2021, we started the project of replacing the controller with our new TP04 controllers,
improving ELTEC SCADA
2
with the new Muvicon Petrol SCADA and updating Termis on the
DH system of the public utility company Belgrade Power Plant in all seven heating areas. We
expect a decision on the selection of a contractor for the new project by the public utility
company Belgrade Power Plant and the start of public procurement for the support and
modernisation of Termis by the public utility company Novi Sad Heating Plant.
In Slovenia and Croatia, we focus on providing support to our users.
2
SCADA (Supervisory Control And Data Acquisition)

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x Efficient lighting systems
The entire region in which Petrol is present is becoming increasingly aware of the importance
of energy efficiency and light pollution of public lighting systems. Slovenia is one of the
countries that have begun solving this problem through state-level regulation. In 2007, the
Government of the Republic of Slovenia adopted the Decree on Limit Values due to Light
Pollution. Binding for lighting operators, the Decree prescribes the method of lighting and the
maximum consumption of electricity for public lighting systems per resident.
Similar guidelines are also followed by other countries in the region. In Croatia, the Act on the
Protection From Light Pollution is in force, while Serbia has in place: the Energy Act, the
Efficient Energy Consumption Act and Rules on Energy Performance Contracting laying down
measures for improving energy efficiency in the public sector.
Legislative frameworks directly affect the potential or interest of local communities for the
energy and eco-efficient renovation of public lighting systems. Petrol is running public-private
partnership and energy performance contracting projects with the aim of reducing energy
consumption, greenhouse gas emissions and light pollution, as well as to provide traffic and
general safety and lighting comfort for the users of public spaces and public facilities in an
energy-efficient way. By integrating systems in the Tango platform, through the digitalisation
of energy accounting, we monitor and analyse the costs of public lighting systems. Through
the active management of systems, we generate further savings in terms of electricity and the
operational costs of public lighting systems. Modern energy-efficient public lighting systems
represent the foundation for the digitalisation of lighting infrastructure, enabling synergies and
the further development of services in the context of smart local communities.
In the past three years, we doubled the number of public lighting systems with upgraded
energy performance through our own investments. Today we manage public lighting systems
in fifteen Slovenian municipalities and cities, seven Croatian and six Serbian cities. We also
provide energy-efficient lighting in public buildings, sports facilities and industry, where we
have replaced over 250,000 energy-inefficient lamps.
In 2021, despite the COVID-19 epidemic, we managed to renovate public lighting systems with
a total of over 16,000 lamps through successfully implemented projects of energy-efficient
renovation of public lighting in Šentilj, Croatian towns Kraljevica, Sveti Ivan Zelina and Zabok
and Serbian towns Šid and Zaječar and strengthen Petrol's position in the region of SE Europe.
In the region of SE Europe, the Petrol Group manages a total of 25 concessions or public
lighting systems. Through the energy renovation of public lighting systems alone, we save over
23 thousand MWh of electricity per year and reduce CO
2
emissions by more than 15 thousand
tons annually.
Within the product group of the energy and environmental management of buildings, we
continued to replace inefficient lighting in public buildings and in dedicated sports facilities.

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x Tango
Tango is the Petrol Group's own IoT platform, which solves the challenges of modern business
and enables digital and green transformation. It focuses on building smart and pragmatic work
processes, making smart decisions and creating new added value.
Among others, Tango offers its users:
x data collection from different energy systems and platforms;
x calculating key performance indicators based on the data captured;
x data capture from e-invoices and energy accounting;
x display of data on control panels, in reports, on maps;
x management of key asset data;
x error notification and alerting;
x sharing content between different stakeholders;
Using Tango allows subscribers to:
x constantly monitor the operation of various systems in one place;
x respond quickly to changing system conditions;
x analyse the operation of devices and systems;
x improve operational efficiency while improving the quality of services;
x reduce energy consumption and costs;
x introduce the automation of process and device management based on advanced
analytical models.
In 2021, we used Tango in many Petrol products and areas, with which we are present in the
markets of Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro. In the energy
sector, Tango is used in:
x district heating systems;
x water systems;
x efficient public lighting systems;
x energy management of facilities;
x natural gas distribution;
x closed economic area management;
x solar electricity generation systems;
x wind power generation systems;
x smart energy community management;
x energy storage management;
x LPG storage management.
In addition to the above, Tango is used in energy management and energy bookkeeping for
real estate owned by Petrol and in the dynamic management of fuel prices.

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x Energy solutions for industry
In the area of industry, we have developed various business models that are fully tailored to
the needs of customers and their technological processes. The most interesting projects in
Slovenia's industry in 2021 were: the use of green energy products (with an emphasis on green
electricity and biogas), e-mobility, efficient lighting, photovoltaics, waste heat, industrial
treatment plants, circular economy, energy management, compressed air, heating and cooling,
electricity and heat storage, virtual power plant, etc.
For all these projects, Petrol is a reliable and professional partner that helps the industry
achieve the goals of the NEPN. For management purposes, an integrated management centre
has been established in Ravne na Koroškem, where we ensure the reliable and efficient
functioning of our customers’ processes throughout the year.
In 2021, we implemented the following energy solutions in the industry:
x We distributed 166.3 million kWh of natural gas (the Ravne industrial zone).
x We pumped 777.4 thousand m
3
of drinking water for technological purposes and drinking
and distributed 60.7 thousand m
3
of sanitary drinking water, 553.5 thousand m
3
of
technological drinking water and 2.7 million m
3
of cooling water (the Ravne industrial zone).
x We sold 4.3 million m
3
of drinking water and distributed 18.14 thousand m
3
of drinking
water and 15.8 m
3
of cold water in the Štore industrial zone.
x We distributed and sold 74.1 million m
3
of compressed air.
x We distributed 358 GWh of electricity, specifically 180 GWh in the Štore closed distribution
system and 178 GWh in the Ravne closed distribution system.
In 2021, in the rounded economic area of Ravne, we installed small photovoltaic devices mFE
Kisikarna (power 88.00 kWp) and MFE Energy building (power 174.80 kWp) on the roofs of
our production facilities for the production of electricity using solar energy. The power plants
will generate more than 6 million kilowatt-hours of electricity from renewable energy sources
in twenty years. Petrol will use all of the generated energy for its own needs and reduce carbon
dioxide emissions by 126 tons of CO
2
per year.
In 2021, we included a 6-megawatt electric boiler in the existing district heating system. The
main purpose of the electric boiler is to provide services to the transmission system operator
(ELES) in connection with frequency control (mFRR). This is the first project of its kind in
Slovenia and is part of a broader European project called X-FLEX.
In 2021 we continued searching for potential locations at industrial facilities for electricity
production from RES and the installation of solar power plants (both in our facilities and at our
customers). The first energy audit projects have been implemented, enabling the identification
of opportunities for improving energy efficiency, reducing the carbon footprint and cutting
energy costs in the long run.

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District heating
District heat supply consists of heating systems where heat is produced in one or more boiler
rooms and distributed to end-customers via a hot-water network. Heat distribution systems are
now considered to be one of the most reliable and, in terms of the environment and costs,
acceptable systems for supplying heat to end-customers. Buildings supplied via a district
heating system do not require their own heating source, with the system itself providing the
following supply advantages: greater energy efficiency, better environmental protection, easy
operation and maintenance, reliability, comfort and convenience, lower investment costs and
lower operating costs and investment maintenance costs.
Heat distributors must ensure that at least 50 percent of heat is produced from renewable
energy sources (biomass, geothermal energy, etc.) or that a minimum of 75 percent is
produced from the high-efficiency cogeneration of heat and power, or 50 percent as a
combination of heat from the previous two sources.
At the end of 2021, the Petrol Group operated 29 district heating systems, of which 16 were
organised as an optional public utility service (a concession) or concession agreements for
their management were signed with municipalities. Ten district heating systems were
organised as proprietary systems and three as market distribution systems.
In 2021 the Petrol Group sold 165.4 thousand MWh of heat, which was 21 percent more than
in 2020 and 12 percent more than planned.
Distribution of natural gas
The Petrol Group distributes natural gas in Slovenia, Croatia and Serbia.
In Slovenia, Petrol d.d., Ljubljana either owned or managed 31 concessions in 2021 through
which it operated more than 10,000 active connections and supplied over 17,000 end-users.
In 2021, Petrol d.d., Ljubljana, continued to build the distribution network in Idrija, Črešnjevci,
Škocjan and Šentjernej and built additional connections on other concessions.
In Serbia, Petrol distributes natural gas through Beogas d.o.o. in the Belgrade area in three
municipalities (Čukarica, Palilula, Voždovac) and in the municipalities of Pečinci and Bačka
Topola. In 2021, more than 19 km of network and more than 800 new connections were newly
built.
In Croatia, the Petrol Group distributes natural gas through Zagorski metalac d.o.o. It
distributes natural gas in the areas of Zagreb County and Krapina-Zagorje County. The
company has a broad gas distribution network (of approximately 830 km), through which it
supplies gas to almost 18 thousand end-customers. The company is among the top 10
distributors in Croatia.
The Petrol Group distributed 1.4 TWh of natural gas in 2021, an increase of 13 percent from
2020 and 15 percent less than planned.

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Production of electricity
Renewable electricity production is undoubtedly one of the key areas for sustainable future
development at the same time as the common societal goal of the transition to a low-carbon
society. The global energy system is evolving rapidly, driven
by both increased energy needs
and environmental demands due to climate change. With this in mind, we are pursuing the
production of electricity from renewable energy sources wind, water, and solar. National and
EU policies are encouraging the transition to decarbonised energy sources to achieve lower
CO
2
emissions, while renewable energy sources are becoming an increasingly cost-effective
and competitive energy source.
Renewable electricity production is an important pillar of the Petrol Group's development into
a modern energy company. It helps us secure own long-term sources for the purpose of
producing electricity, while keeping us prepared for new trends in the area of transport and
industry. Petrol sees many opportunities for the development of renewable electricity
production in SE Europe. By developing our own production capacity, we pursue the strategic
orientation of becoming a visible regional provider of comprehensive energy and
environmental solutions, and a partner in the development of the circular economy for
transition to the low-carbon society.
The Petrol Group has been involved in electricity production since 2003. We produce
hydroelectric power in Bosnia and Herzegovina and Serbia. In Bosnia and Herzegovina, we
produce electricity in five small hydropower plants. In 2021, they produced a total of 29 GWh
of electricity. In Serbia, in 2021, we completed the investment in a small 1 MW hydroelectric
power plant Grajiči in cooperation with a business partner.
In Croatia, the Glunča wind power plant produced 46.5 GWh of electricity. Despite the
pandemic, we successfully completed the investment in the construction of the Ljubač wind
farm (30 MW). In addition, we are in the final phase of the development of three solar power
plant projects with a total capacity of 20 MW on the Croatian market, the construction of which
is planned for 2022 and the start of generation for the beginning of 2023.
The Petrol Group is accelerating the development and implementation of projects in the field
of renewable energy sources, in which wind and solar power plants will play a very important
role.
The Petrol Group generated 130.7 thousand MWh of electricity in 2021, up by 51 percent
compared to 2020.
Mobility
Mobility is a right and freedom. Our mission is to identify opportunities for the green transition,
listen to needs and work with individuals, businesses, agencies and governments to build
partnerships to meet climate challenges, find solutions to overcome barriers and enable a
In 2021, we successfully completed an investment in the construction of the Ljubač (30
MW) wind power plant in Croatia, which produced 30.5 GWh of electricity in 2021, and an
investment in the construction of the Grajiči small hydropower plant (1 MW) in the Republic
of Serbia.

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mobility transformation system that is affordable for our customers, fair, environmentally
friendly and profitable for investors.
The Petrol Group is developing new smart solutions that will be an important pillar of our
sustainable and innovative operations in the markets of SE Europe in the long term. We focus
on two key segments:
x We strive to expand the charging infrastructure for electric vehicles by constructing,
managing and maintaining the charging infrastructure for electric vehicles and providing a
charging service that will allow carefree travel for each individual.
x Together with our subsidiary Atet d.o.o. we want to provide organisations with a variety of
mobility services, including operating leasing, fleet electrification, vehicle sharing and fleet
management services in a sustainable way, which will reduce their operating costs,
streamline vehicles and reduce their carbon footprint.
x Charging infrastructure
The development of charging infrastructure is based on key partnerships with the largest
energy companies, municipalities and transport companies in Central and South-Eastern
Europe in the framework of three projects co-financed by the European Commission. In 2021,
we continued to manage the Urban-E and Multi-E projects, and completed the implementation
of the Next-E project. The common denominator of all three projects that combine and
influence both segments of mobility is the implementation of global guidelines for the transition
to alternative fuels, decarbonisation and transport innovation. To this end, we are setting up a
charging infrastructure network for alternative energy sources, primarily for electric vehicles,
and developing smart mobility services.
As part of the Urban-E project, in 2021 we further expanded the charging infrastructure with
16 new conventional and 1 fast-charging station in Ljubljana and 11 conventional and 1 fast-
charging station in Zagreb. Through the Multi-E project, we will further expand our market
presence with new types of charging points in Slovenia and Croatia and enter the market of
northern Italy. In 2021, we launched 15 conventional charging stations as part of this project.
As partners in the Next-E project, we boosted Petrol’s market share in charging infrastructure
on motorways along the TENT-T corridor with 6 new fast and 4 ultra-fast-charging stations in
Slovenia and with 7 new fast and 2 ultra-fast-charging stations in Croatia. In addition, a pilot
installation of an electricity storage tank was carried out in Slovenia in connection with 1 fast
and 1 ultra-fast-charging station, as well as the connection of the storage tank in the tertiary
reserve system.
The electricity storage tank at Petrol's Kozina point of sale has a capacity of 210 kWh and its
power is 300 kW.
Photo source: Petrol archive

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With the support of the mentioned projects, we also completed the renovation of the back-
end system for the management of electric chargers and the OneCharge application, thus
enabling a simpler and better user experience for our users.
The network of partners for roaming on foreign charging infrastructure has increased by 5
new partners, which will give our users access to a wider network of electric charging stations
in Europe. Our users can use the OneCharge mobile app and the associated bank card for
recharging at the charging points of partners with whom we have established cooperation. We
also offer the users of our partners, i.e. other charging service providers, straightforward
access to charging at the charging points we manage with the help of partners’ mobile
applications and identification cards. We are connected to 25 charging service providers
through an international platform. This will enable us to grow in the field of e-mobility in the
regions where the Petrol Group operates and allow us to expand to other new markets.
In December 2021, in partnership with Supernova Qlandia and as part of the NEXT-E project,
we opened a state-of-the-art charging centre for electric vehicles with e-chargers capable of
charging up to 350 kW/h. It is the first centre of multi-standard charging infrastructure for
electric vehicles in the Dolenjska region at the location of the Supernova Qlandia shopping
centre in Novo Mesto.
Photo source: Petrol archive
In addition to the charging infrastructure within EU projects in 2021, we additionally set up or
assumed the management of 35 conventional charging stations and 3 fast-charging stations
in Slovenia. In 2021, we also expanded the charging infrastructure to Serbia, where we set up
the first fast-charging station. In addition to our own investments, we increased the charging
infrastructure by selling charging stations to private and business users both in Slovenia and
on the Croatian market.
At the end of 2021, Petrol operated 296 charging stations for electric vehicles. The number of
charges using our charging infrastructure increased by more than 69 percent in 2021
compared to 2020, and the amount of transmitted electricity by more than 62 percent, which,
despite the measures and the consequent reduction in transit traffic due to the pandemic, is
proof that the development of e-mobility is in full swing and that even demanding unexpected
challenges cannot stop growth.

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x Mobility services
Petrol has included in the strategy for the development of sustainable mobility the services
provided by the subsidiary Atet d.o.o. In this way, the Company expanded its range of services
on the Slovenian market and added fleet management and maintenance to long-term vehicle
rental, offering short-term vehicle rental, which is closely related to fleet optimisation.
As part of the fleet management service, companies, municipalities and other organisations
are provided with continuous mobility owing to services such as long- and short-term leases
and door-to-door services. At the same time, we reduce fleet costs with an optimised fleet
vehicle structure and work towards fleet electrification, thereby reducing the carbon footprint.
In 2020, we carried out a pilot project on Petrol’s own fleet and we entered the market at the
start of 2021.
After a successful pilot project, Atet d.o.o. assumed the management of all vehicles in the
Petrol fleet and thus established a single contact point to support users of company vehicles
and began to ensure the uninterrupted mobility of employees. Pool vehicles have been
optimised with a combination of permanent vehicles and short-term leases, so that permanent
vehicles are fully utilised, while for additional needs for vehicles, Atet d.o.o. provides short-
term leases. As a result, the number of vehicles has decreased, while employee mobility is
constantly guaranteed.
In the light of the mobility trends, where, in addition to fleet electrification, various types of e-
vehicle rental rather than purchase are involved, we continued to develop the service called
Vehicle as a Service. It is an upgrade of a typical operating lease of electric vehicles for up to
5 years. At the end of 2021, we had 74 electric vehicles on long-term operating leases. This is
just one of the products that complement our comprehensive mobility solutions. We also offer
municipalities and companies the optimisation and management of their existing fleets.
In addition to financing, the Vehicle as a Service package covers all the operating costs
incurred during the lease of a vehicle (insurance, regular and emergency repairs and
maintenance, additional sets of summer and winter tyres, tyre replacement and storage, 24/7
customer assistance, vehicle replacement assistance, etc.).
Supply of natural gas
2021 was extremely exciting in the natural gas market and one of the most unusual so far, as
we witnessed a remarkable rise in the price of natural gas. Natural gas prices began to rise in
early 2021, following the lowest levels in 2020.
Natural gas suppliers have started adjusting their natural gas price lists for household and
small business customers. Petrol adjusted the price list as of 1 December 2021.
In 2021, the Petrol Group supplied 26.5 TWh of natural gas, which is 43 percent more than in
2020 and 40 percent more than planned.

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The share of Petrol d.d., Ljubljana, natural gas end users on the Slovenian market


Source: Energy Agency, Petrol

Electric power supply

Electricity has become almost an indispensable part of our everyday lives and the increasingly
dominant energy source with which we power our world. Electrification is happening in many
areas, such as heating, where heat pumps are becoming increasingly popular, transport, which
is increasingly powered by electric cars, bicycles and scooters, and business, where
digitalisation requires more electricity.

These trends coincide with the EU's commitment to transition to a carbon-free society, to
reducing CO
2
emissions and to producing electricity from renewable energy sources. The EU
aims to reduce greenhouse gas emissions by 55 percent by 2030 and aims to become carbon
neutral by 2050. The Petrol Group also places great emphasis on the transition to a carbon-
free society for a green and clean future.

An important role in the green transition will also be played by electricity consumers, who are
becoming active customers with their own production of electricity, which they use for their
home or business, and transmit surplus energy to the grid and are thus active users of the
system. In 2021, Petrol purchased electricity from 228 small producers, which is 11 more than
in 2020. In total, we put 126 GWh of energy from renewable sources into the network. Petrol
is also expanding its activity of setting up solar power plants, as we are aware that this is a key
step towards the decarbonisation of Slovenia and energy self-sufficiency.

In 2021, Petrol completed the acquisition of E 3, d.o.o., one of the largest electricity suppliers
in Slovenia.
In 2021, the Petrol Group supplied 3.6 TWh of electricity, up by 110 percent year-on-year and
6 percent compared to the plan

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The share of Petrol Group’s electricity end users on the Slovenian market


Source: Energy Agency, Petrol


Petrol is aware of the challenges and opportunities that the transition to a carbon-free society
brings, so it is rapidly investing in solutions that will help make the transition faster and more
efficient:
x In 2021, we launched the Ljubač wind power plant, which supplies electricity to around
30,000 household customers. Other similar projects are underway; some will be completed
as early as 2022. In addition to our own production, we also purchase green energy from
small producers, thus ensuring that our portfolio has an increasing share of energy from
renewable energy sources.
x We are developing a Virtual Power Plant, where we manage and connect production
resources and active market customers.
x We cooperate with our own and contractual resources in tertiary frequency regulation or in
the manual frequency recovery process. We also plan to upgrade the aggregator platform
and participate in the secondary power reserve.
x We are developing PPA (Power Purchase Agreement) products, through which we will
purchase electricity from renewable energy sources or sell production from our own
sources. Structured products such as PPAs are becoming increasingly interesting and
sought after, especially in times of volatile energy markets.









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New business models
In our opinion, the key to market success is the development of new business models that
enable the green transformation of energy and are resistant to changing conditions, such as
the COVID-19 pandemic. We are developing new business models as part of development
projects co-financed by the Republic of Slovenia and the European Union.
X-Flex An international project co-funded by the EU through the Horizon 2020 programme.
Its goals include the development of tools that will enable and facilitate the use of flexibility in
the electricity system with the aim of increasing the stability and security of supply in normal
working conditions, as well as during extreme weather conditions. For this purpose, we
invested in a 6 MW HV-electrode boiler in the Ravne integrated economic zone in 2020. The
boiler will help us develop and test a model for generating heat from renewable energy sources
(RES Power2Heat), which will improve the reliability and efficiency of district heating by
optimising the use of CHP units and of the HV
3
-electrode boiler. At the same time, we will
provide system services through the flexibility offered by the entire system and support
Slovenia’s electricity grid.
Compile An international project co-funded by the EU through the Horizon 2020 programme.
The project aims to activate and use local energy systems in order to support the rapid growth
of energy production from renewable energy sources in parts of the network facing constraints
and foster the transition from a centralised system with passive users into a flexible network of
active users and energy communities. In the scope of the project, we established the first local
self-sufficient energy community in Slovenia in Luče, which can satisfy all of its own electricity
demands from RES alone. The Compile project Luče Energy Community was rewarded as
the best energy efficient project of 2020 in Slovenia.
DEUP Together with our partners, we successfully completed the DEUP project in 2020, with
which we developed: a solution for energy optimisation in the steel industry (locations of
SIJ Acroni and SIJ Ravne na Koroškem); a tool for the optimal utilisation of flexibility in the
electricity market; an active FEMS (Factory Energy Management System); and a system for
the efficient management of the water supply network system (KP Ptuj and KP Idrija).
OPERH2 In cooperation with our partners, we successfully completed the OPERH2 project
in 2020 in which we developed a solution for offtake management combined with the
production of hydrogen from renewable energy sources in the glass industry to help customers
gain better control of consumption and reduce energy costs. The system-wide flexibility will
also allow us to offer system services and support Slovenia's electricity grid. In 2020, we
received the Gold Award of the Zasavje Chamber of Commerce and the Silver Innovation
Award of the Chamber of Commerce and Industry of Slovenia.
DOM24h Smart home of the future for a comfortable and healthy living and working
environment. The primary goals of the project are to present the development and
demonstration of a new concept of living in a home and to demonstrate products for the smart
buildings of the future. The project combines individual newly developed and technologically
advanced, but complementary solutions of renowned Slovenian companies into a new
conceptually comprehensive solution for building and living in a sustainable, smart and
connectable, user-friendly, advanced and healthy living environment. It is an integrative project
of solutions for all four focus areas of SRIP Smart Buildings and Home with a Wood Chain
3
Co-generation of heat and power

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(wood and wood chain, advanced non-biogenic construction products, smart devices and
systems and active building management).
CyberSEAS - As part of the CyberSEAS (Cyber Securing Energy dAta Services) project,
Petrol is working with 25 partners from 10 countries to increase the resilience of energy supply
chains and their protection against disruption. The key objectives of the project for Petrol are:
to prevent cyber risks associated with attacks affecting electricity supply systems and to
increase the security of the common energy data space. To achieve its goals, CyberSEAS
offers an open and scalable ecosystem with 30 flexible security solutions. They provide
effective support for key activities such as risk assessment, interaction with terminal
equipment, safe development and deployment of new systems, ongoing security monitoring,
certification, etc. The solutions are validated by experimental campaigns consisting of more
than 100 attack scenarios tested in three laboratories. Petrol is a member of the Slovenian
pilot project, which consists of partners, namely ELES, SI-CERT, ICS and INFORMATIKA.
InfraStress - The project aims to ensure the security of sensitive industrial plants and areas
in Europe by improving their resilience (so that they can effectively defend against threats,
physical and cyber threats) and to ensure the optimisation of investments to improve resilience
and protection. The project has been approved under the Horizon 2020 European Research
and Innovation Programme. We started the project in June 2019 and successfully completed
it in September 2021. The consortium included 27 project partners from 11 countries (Italy,
Greece, Portugal, Slovenia, Ireland, Israel, Germany, Poland, the Netherlands, Cyprus and
France). Petrol participated in the preparation of user requirements and risk scenarios, in the
analysis of cyber and physical risks and vulnerabilities, and in the testing and validation of the
results of pilot activities of participating partners. It has also contributed to tasks related to the
dissemination of project results. Besides Petrol, the Port of Koper, the Institute for Corporate
Security Studies (ICS) and the Jožef Stefan Institute (JSI) also participated in the project. The
benefits of the project for Petrol are primarily in improving the identification, anticipation and
assessment of risks such as deliberate attacks, human threats and natural disasters. Petrol
identified vulnerabilities in critical infrastructure (SEVESO plants) and used the acquired
knowledge in procedures and systems to ensure corporate security and safety. We will use
innovative solutions to increase infrastructure security, exchange knowledge between project
partners, and at the same time increase security awareness and improve risk assessment
tools.
HIGHLIGHTS:
x Petrol's new organisation will allow the Company to meet the challenges of the energy
transition.
x The rise in energy product prices has dramatically increased the demand of all customer
segments for renewable energy solutions.
x Petrol carries out energy performance contracting services for buildings in the narrow and
wider public sector.
x We use remote energy systems to help increase energy and environmental efficiency in
nine countries in the region.
x Today we manage public lighting systems in fifteen Slovenian municipalities and cities,
seven Croatian and six Serbian cities.
x Tango is the Petrol Group's own IoT platform, which solves the challenges of modern
business and enables digital and green transformation.
x With its energy solutions, Petrol helps the industry achieve the goals of the NEPN.

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x We are present on the market of Croatia, Bosnia and Herzegovina and Serbia with the
production of electricity from renewable energy sources.
x The development of charging infrastructure is based on partnerships with the largest
energy companies, municipalities and transport companies in Central and South-Eastern
Europe.

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15. Investments
In 2021, most of the investment funds were earmarked for long-term investments such as
the acquisition of the Croatian company Crodux Derivati Dva d.o.o. and Slovenian company E
3, d.o.o. In accordance with the adopted strategy of the Petrol Group until 2025, the bulk of the
investment budget was allocated to the energy transformation, specifically to expanding
operations in energy and environmental solutions in Slovenia and the markets of SE Europe
and in expanding sales and upgrading and maintaining logistics capacities in Slovenia.
Due to the pandemic, in 2021, we again started only with the most urgent investments needed
to ensure smooth and safe operations, but after the end of the first quarter, we restarted the
investment cycle and confirmed some additional investments due to more favourable business
conditions. The total realisation of the net investments in 2021 is lower than the set goals due
to the epidemic, shortened supply chains and difficult business processes. However, the
energy crisis at the end of the year did not affect the realisation of investments.
In 2021, net investments in property, plant and equipment, intangible assets and long-term
investments stood at net EUR 233.2 million, of which EUR 192.2 million for the acquisitions of
companies Crodux Derivati Dva d.o.o. and E 3, d.o.o. In 2020, we allocated EUR 85.4 million
for investments.
Structure of invested assets excluding acquisitions of companies
Sales of petroleum products and merchandise
The main share of investments in energy sales is the acquisition of Crodux Derivati Dva d.o.o.
in Croatia, with which we acquired 93 new points of sale. In Slovenia, a larger share of realised
investments was allocated to investments in investment maintenance and obtaining
documentation for the implementation of investments in the coming years. In Serbia, we
completed the new construction of the Čačak point of sale and completed the McDonald's
restaurant at the Ada Belgrade point of sale. Throughout the year, we carried out investment
maintenance at points of sale in all markets.
Sales of other energy products (LPG, natural gas and electricity)
At the beginning of the year, we completed the acquisition of a 100 percent interest in the
company E 3, d.o.o., and made investments in the installation of smaller gas depots with
customers and the installation of LPG gas stations for companies throughout the year.

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Energy and Solutions
In 2021, we implemented two major projects, namely the EUO Technical School Centre
Maribor and the Energy Renovation Ljubljana 3 - EOL 3. On the project of TSC Maribor, two
buildings were rehabilitated: the student dormitory and the main building. On the EOL 3 project,
we implemented projects at eleven facilities. Of these, six facilities were rehabilitated
completely and five technologically.
The renovation of public lighting in Šentilj, the renovation of the boiler room of the Brežice
Health Centre, the construction of the heating source of the intergenerational home Bled
(MGC) and PL Radlje ob Dravi, which is in the final phase, were carried out. We also started
preparing a project for solar power plants in Croatia. The implementation of sales projects for
the market took place, such as the sale and implementation of heating stations, CNS
4
, various
project extensions.
In the markets of SE Europe, we carried out the energy renovation of public lighting systems:
PL Zaječar and PL Šid in Serbia, PL Zabok, PL Sveti Ivan Zelina and PL Kraljevica 2 in Croatia.
Production of renewable electricity
Renewable electricity production is undoubtedly one of the key areas for sustainable future
development at the same time as the common societal goal of the transition to a low-carbon
society. With this in mind, we are pursuing the production of electricity from renewable energy
sources wind, water, and solar. In 2021, despite the COVID-19 pandemic, we successfully
completed the construction of the Ljubač (30 MW) wind power plant in Croatia, which produced
30.5 GWh of electricity in 2021. In addition, we are in the final phase of the development of
three solar power plant projects with a total capacity of 20 MW on the Croatian market, the
construction of which is expected in 2022. In Serbia, we completed the investment in the
construction of a small hydroelectric power plant Grajiči (1 MW). The Petrol Group is
accelerating the development and implementation of projects in the field of renewable energy
sources, in which wind and solar power plants will play a very important role.
Mobility
In mobility, investments in the expansion of charging infrastructure and investments in motor
vehicles for the provision of mobility services took place in all markets.
Other
Throughout 2021, we invested in the modernisation of information and other infrastructure and
in ensuring security.
HIGHLIGHTS:
x By 2025, a large share of investment funds was earmarked for energy transformation.
x In 2021, despite the pandemic, we successfully completed the construction of the Ljubač
(30 MW) wind power plant in Croatia, which produced 30.5 GWh of electricity in 2021.
4
Central control system.

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16. Share and ownership structure
2021 was a successful year for investors on the Ljubljana Stock Exchange
5
. After 2020, when
the COVID-19 pandemic affected the developments on the Ljubljana Stock Exchange, share
prices at the end of 2021 were on average higher than at the end of 2020. This was also
reflected in the SBI TOP index, which gained 39.8 percent relative to the end of 2020, reaching
1,258.8 points at the end of 2021.
Petrol's shares are traded on the prime market of the Ljubljana Stock Exchange (LJSE) and
have been listed there since 5 May 1997. Last year, Petrol's share was also one of the most
traded shares on the Ljubljana Stock Exchange, and at the end of 2021, its price was 56.3
percent higher than at the end of 2020. The shares of Petrol d.d., Ljubljana, accounted for
20.92 percent of the index as of 20 December 2021. Despite the epidemic, Petrol d.d.,
Ljubljana, paid a dividend in the amount of EUR 22.0 gross per share for 2020.
16.1 Petrol share price
After 2020, when the COVID-19 pandemic affected the developments on the Ljubljana Stock
Exchange, share prices at the end of 2021 were on average higher than at the end of 2020.
This was also reflected in the SBI TOP index, which gained 39.8 percent relative to the end of
2020, reaching 1,258.8 points at the end of 2021.
In 2021, the movement of the Petrol share price was positive, as the share price reached
EUR 508.0 at the end of 2021 and was 56.3 percent higher than at the end of 2020. The shares
of Petrol d.d., Ljubljana, accounted for 22.92 percent of the index as of 21 December 2020.
Base index changes for Petrol's closing share price against the SBI TOP index in 2021
compared to the end of 2020
5
Sources of data in chapter “Share and ownership structure”: Ljubljanska borza d.d., website, share register of
Petrol d.d. Ljubljana, statements of the Petrol Group for 2021

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The average price of Petrol’s shares, which stood at EUR 416.68 in 2021, was up 27.6 percent
year-on-year. The closing share price ranged between EUR 325.00 and EUR 516.00 in 2021.
Petrol’s share prices in 2021 and 2020 in EUR
Closing price and the volume of trading in Petrol's shares in 2021
16.2 Trading volume and market capitalisation
The volume of trading in Petrol's shares on the Ljubljana Stock Exchange amounted to
EUR 56.3 million in 2021, including batch trading (EUR 29.6 million), and was up 9.4 percent
from 2020 due to higher share prices, while in 2021 a smaller volume of Petrol shares (147,478
shares) was traded compared to 2020
(156,608 shares).
The trading in Petrol’s shares accounted for 14.8 percent of the Ljubljana Stock Exchange total
trading volume, which stood at EUR 380.0 million, and also 14.8 percent of the stock market's
share trading volume.
2021 2020
Total shares outstanding
2,086,301
2,086,301
Highest closing price for the year
516
394
Lowest closing price for the year
325
266
Average closing price for the year
417
327
Closing price as at last trading day of the year
508
325
Closing price increase/decrease (closing price as at last trading day of
the year/closing price as at last trading day of the previous year)
56.31% -13.33%

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The shares of Petrol d.d., Ljubljana were ranked third on the Ljubljana Stock Exchange by
trading volume. On average, the monthly volume of transactions involving Petrol’s shares
totalled EUR 4.7 million.
The market capitalisation of Petrol d.d., Ljubljana as at the last trading day of 2021 totalled
EUR 1,059.8 million, which accounted for 11.1 percent of the stock market’s total
capitalisation. Petrol d.d., Ljubljana was ranked third in terms of market capitalisation as at the
last trading day of 2021.
16.3 Key financial indicators for Petrol’s shares
The Petrol Group's earnings per share (EPS) for the year stood at EUR 60.6 and its cash
earnings per share (CEPS) at EUR 99.0. The return per share calculated by comparing the
closing share price as at the end of 2021 and the closing share price as at the end of 2020
was positive and stood at 56.3 percent. Combined with the dividend yield of 6.8 percent, the
total return per share stood at 63.1 percent in 2021.
The ratio between the shares’ market price and book value as at the end of 2021 the latter
amounting to EUR 435.6 in the case of the Petrol Group was 1.17 (P/BV), which was higher
than at the end of 2020. The ratio between the shares’ market price as at the end of 2021 and
the Petrol Group's earnings per share stood at 8.39 (P/E).
16.4 Share capital structure
The structure of Petrol d.d., Ljubljana, share capital did not change significantly in 2021
compared to the end of the previous year. The largest single shareholder is Clearstream
Banking SA client account with 287,012 shares. It is followed by the Slovenian Sovereign
Holding with 264,516 shares, the Republic of Slovenia with 225,699 shares and Kapitalska
družba d.d. with 172,639 shares. Other large single shareholders include OTP banka d.d. –
client account, Vizija Holding d.o.o., Vizija holding ena d.o.o., Perspektiva FT d.o.o., Citibank
N.A. client account, UniCredit Bank Hungary ZRT. client account and NKBM d.d.
Ownership structure of Petrol d.d., Ljubljana, at the end of 2021 and at the end of 2020
No. of Shares in % No. of Shares in %
Slovenski državni holding, d.d.
264,516 12.7% 264,516 12.7%
Kapitalska družba d.d. together with own funds
182,543 8.7% 183,181 8.8%
Republic of Slovenia
225,699 10.8% 225,699 10.8%
Other institutional investors - domestic
218,818 10.5% 227,660 10.9%
Banks - domestic
28,415 1.4% 27,920 1.3%
Insurers - domestic
25,479 1.2% 25,779 1.2%
Foreign legal entities (banks and other inst. inv.)
568,942 27.3% 565,270 27.1%
Private individuals (domestic and foreign)
459,646 22.0% 459,584 22.0%
Own shares
30,723 1.5% 30,723 1.5%
Others
81,520 3.9% 75,969 3.6%
Total
2,086,301 100.0% 2,086,301 100.0%
Petrol d.d., Ljubljana
31 December 2021
31 December 2020

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At the end of 2021, 572,314 shares or 27.4 percent of all shares were held by foreign legal or
natural persons. Compared to the end of 2020, the number of foreign shareholders increased
by 0.2 percentage points, while the total number of shareholders decreased from 22,220 as at
the end of 2020 to 21,730.
Shares owned by members of the Supervisory Board and the Management Board as at
31 December 2021
16.5 Other explanations by Petrol d.d., Ljubljana
The prospectus of the company Petrol d.d., Ljubljana, which has been prepared for the purpose
of listing its shares on the stock exchange, is published on the Company’s website. All changes
to the prospectus are published in the Company’s strategy document, annual reports of Petrol
d.d., Ljubljana, and its public announcements available from the Company's website
http://www.petrol.eu/ and the website of the Ljubljana Stock Exchange https://seonet.ljse.si/
Contingent increase in share capital
The General Meeting of Petrol d.d., Ljubljana did not adopt any resolutions in 2021 regarding
the contingent increase in share capital.
Reserves for own shares
Petrol d.d., Ljubljana did not repurchase its own shares in 2021. As at the last day of 2021, the
number of own shares stood at 30,723, representing 1.5 percent of the share capital. This
includes 24,703 own shares that were acquired by Petrol d.d., Ljubljana in the period from
1997 to 1999. Their total cost equalled EUR 2.6 million as at 31 December 2021 and was
Name and Surname Position
Shares
owned
Equity
share
Supervisory Board
88 0.0042%
Internal members 88 0.0042%
1.
Marko Šavli Member of the Supervisory Board 88 0.0042%
2.
Alen Mihelčič Member of the Supervisory Board 0 0.0000%
3.
Robert Ravnikar Member of the Supervisory Board 0 0.0000%
External members 0 0.0000%
1.
Janez Žlak President of the Supervisory Board 0 0.0000%
2.
Borut Vrviščar Deputy President of the Supervisory Board 0 0.0000%
3.
Aleksander Zupančič Member of the Supervisory Board 0 0.0000%
4.
Alenka Urnaut Ropoša Member of the Supervisory Board 0 0.0000%
5.
Mladen Kaliterna Member of the Supervisory Board 0 0.0000%
6.
Mário Selecký Member of the Supervisory Board 0 0.0000%
Management Board
4 0.0002%
1.
Nada Drobne Popović President of the Management Board 4 0.0002%
2.
Matija Bitenc Member of the Management Board 0 0.0000%
3.
Jože Bajuk Member of the Management Board 0 0.0000%
4.
Jože Smolič Member of the Management Board 0 0.0000%
5.
Zoran Gračner Member of the Management Board and Worker Director 0 0.0000%

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EUR 9.9 million lower than their market value on that date. The remaining 6,020 shares are
the shares that are considered as own shares that were held by the subsidiary Geoplin d.o.o.
Ljubljana at the time it was incorporated in the Petrol Group.
Own shares of Petrol d.d., Ljubljana, in total 36,142 (without the shares of Geoplin d.o.o.
Ljubljana), were purchased between 1997 and 1999. The Company may acquire these own
shares only for the purposes laid down in Article 247 of the Companies Act (ZGD-1) and as
remuneration to the Management Board and the Supervisory Board. Own shares are used in
accordance with the Company’s Articles of Association.
A dividend policy maximising long-term returns
A shareholder policy that is based on a long-term maximisation of returns for shareholders is
one of the cornerstones of Petrol’s development strategy. Petrol’s management advocates a
stable long-term dividend payout. This fits best with the Company’s development needs as it
delivers more predictable returns and the long-term stability of Petrol’s share price.
In accordance with a resolution of the 33
rd
General Meeting of 22 April 2021, Petrol paid out in
2021 a gross dividend for 2020 of EUR 22.00 per share.
Overview of dividend payments 20152020
Accumulated profit
The accumulated profit of Petrol d.d., Ljubljana, as determined in accordance with the
Companies Act, stood at EUR 61.85 million in 2021.
Regular participation in investors’ conferences and access to information
Petrol d.d., Ljubljana has set up a programme of regular cooperation with domestic and foreign
investors, which consists of public announcements, individual meetings and presentations, and
public presentations.
The Company also regularly attends investors’ conferences organised each year by stock
exchanges, brokerage companies and banks. There were several individual meetings with
investors and analysts in 2021. In March and August, we participated in the online conference
of the Ljubljana Stock Exchange, and in May and December, at the “Slovenian and Croatian
Investors’ Day” conferences, organised by the Ljubljana Stock Exchange in cooperation with
the Zagreb Stock Exchange. In December, we also participated in the Winter Wonderland EME
web conference organised by WOOD & Co. from Prague.
Period
Gross dividend per
share
2015 EUR 12.60
2016 EUR 14.00
2017 EUR 16.00
2018 EUR 18.00
2019 EUR 22.00
2020 EUR 22.00

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All information relevant to shareholders, including the financial calendar, is published on the
Company’s website. The contact person responsible for investor relations is Ms Barbara Jama
Živalič, who can be reached at investor.relations@petrol.si.
HIGHLIGHTS:
x In 2021, Petrol's shares were again one of the most traded among those listed on the
Ljubljana Stock Exchange.
x Capital gains yield of the Petrol share together with dividend yield totalled 63.1 percent in
2021.

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17. Internal Audit
Internal Audit has operated as an independent and autonomous support function within
the organisational structure of the controlling company since 2002. Organisationally, it has a
direct reporting line to the president of the Management Board, while functionally it reports to
the Audit Committee and the Company's Supervisory Board. Internal Audit operates
throughout the Petrol Group and adheres to the International Standards for the Professional
Practice of Internal Auditing. The purpose of Internal Audit is to give objective assurance to the
Management Board and the Audit Committee and provide advice at all levels about property
protection, compliance with the law and internal regulations, as well as the improvement of the
quality and efficiency of risk management, thus improving the Petrol Group's operations. By
doing so, it helps to achieve strategic and business goals based on best practices.
Internal Audit operates in accordance with the Internal Audit Charter and the principles of
independence, professional competence, objectivity and ethical principles as
fundamental principles of the auditing profession. Internal Audit's annual work programmes
and annual reports are approved by the Company's Management Board, they are presented
to the Audit Committee for information, and the Company's Supervisory Board approves the
plans and reports. Internal Audit provides regular reports on its work to the Management Board
and reports at least quarterly to the Supervisory Board’s Audit Committee. In 2021 the Audit
Committee received quarterly reports on all audits, significant findings and recommendations
for improving the system of internal controls and risk management within the Petrol Group.
In accordance with the International Standards for the Professional Practice of Internal
Auditing, an external assessment of the quality of Internal Audit should be conducted at least
once every five years by an independent assessor or assessment team from outside the
organisation. At Petrol, the external assessment of the quality of internal auditing was last
performed in 2019, resulting in a report, which confirmed conformity with the International
Standards for the Professional Practice of Internal Auditing. The external assessment was
performed by an independent international audit firm, which also prepared a benchmarking
analysis and determined that according to the eight elements of excellence, the Petrol Group's
internal auditing significantly exceeds the average of 453 global companies and the average
of 57 companies with revenues above USD 2 billion.
In 2021 Internal Audit continued to carry out certain procedures to improve the quality of work:
x due to changes in the Petrol Group's operations, organisation and environment it updated
the set of departments/processes within the Petrol Group (the audit universe);
x based on the COSO methodology, it reassessed risks according to the processes and
organisational units of the Petrol Group, taking into account the significance of the
processes and the date of the previous internal audit;
x following a new risk assessment, Internal Audit's work programme for 2022 was approved
in December 2021 by the Management Board and the Supervisory Board;
x it carried out procedures to measure the efficiency of internal audits.
The verification of the functioning of the internal controls in the Petrol Group’s retail
network was carried out by a dedicated team of qualified experts from the Corporate Security
and Operations Control, which, in order to prevent and detect fraud, focus primarily on the
monitoring of service station, logistics and storage facility operations from the perspective of
goods and finance. In 2021, the internal audit performed 11 regular and extraordinary audit

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reviews of assurance (three reviews were in their final phase as at 31 December 2021). The
objective of the internal audits was to verify the integrity of financial and business decision-
making reporting, compliance with the law and internal regulations, the implementation of the
Petrol Group's strategy and process effectiveness. In terms of their content, the audits were
focused mainly on verifying the efficiency of processes that were either new or were not
subjected to an audit during the past four years. For the processes that were audited, Internal
Audit gave assurance that the audited units had in place a suitable internal control system that
was operational on a regular basis. As there was still room for improvement, recommendations
were provided, the implementation of which was checked on a regular basis. In 2021, in
addition to the audits, Internal Audit regularly monitored the implementation of
recommendations from previous and current years.
2021 was also marked by the COVID-19 epidemic and related measures to limit the
consequences of the epidemic. As a result, the Internal Audit was faced with the limited
availability of auditees and adjusted its activities accordingly. Due to measures taken to
prevent COVID-19 infections, the activities of Internal Audit were adapted in accordance with
the Company's guidelines in 2021 as well. This mainly involved working from home, introducing
the electronic management of internal audit documents and having remote meetings with
auditees.

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18. Information technology
Today, information and technology are key development and support functions in the
Company. It is integrated into all parts of the business process and, as such, is a prerequisite
for the successful operation of the organisation. The Petrol Group pays great attention to
information technology. Digital transformation, continuous improvement, teamwork and
collaboration with users are key to responding quickly and efficiently to everyday changes and
challenges.
Below, main projects and activities in the field of information and technology in 2021 are
presented.
18.1 Introduction of key information solutions
We continued with the planned IT transformation and in May successfully introduced a new
ERP in three subsidiaries in Serbia. In summer, we continued intensively with the preparation
of the expansion of the ERP system to other countries and in October successfully introduced
it in two more countries (Bosnia and Herzegovina, Montenegro) and two subsidiaries. This
completed the first phase of expanding the use of central ERP in the Petrol Group companies
and unified application support.
In the second half of the year, we started preparing the project of integrating the company
E 3, d.o.o. into Petrol’s IT-support, which is expected to be realised in 2022. To support the
purchasing process, a software solution was introduced a special module with integration
into the ERP-solution. We have also taken some important steps in using the CRM-platform in
the direction of greater support for sales processes (B2C and B2B) and the greater
digitalisation of processes. We have also successfully introduced support for the electronic
certification and signing of documents. In support of energy trading, we introduced two
companies (Geoplin d.o.o., E 3, d.o.o.) to the trading platform. In parallel with the above
activities, we made some major functional upgrades in various areas of IT-support (e.g.
support for intraday retail prices).
At the end of 2021, we completed the development of a new online shop (eShop B2C),
developed on a modern technology platform, which brings many improvements to both
business users in online store management processes and customers. The solution realises
and upgrades the vision of Petrol's comprehensive digital ecosystem. It provides a unified user
experience without switching between sites and provides the best combination of physical and
online shopping. The solution came to life for internal users at the end of 2021, and at the
beginning of 2022, we will enable its use to all customers.
In the autumn of 2021, we started the project of merging Crodux Derivati Dva d.o.o. to Petrol
d.o.o, Zagreb. One of the important parts of the project and successful operation in the future
is the migration of the information system of Crodux Derivati Dva d.o.o. into the Petrol
information system. In 2021, we prepared a detailed analysis and plan for the execution of
migration. We have also started upgrading Petrol's information system, which will provide
quality support to the merged company's operations. The migration of 93 service stations of
Crodux Derivati Dva d.o.o. into the Petrol information system will start in March 2022, and the
migration of the company in its entirety is expected to be completed by the end of 2022.

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18.2 Modernising, improving, optimising and digitalising
In 2021, we introduced a new platform for the “codeless” automation of testing, which will
ensure the quality and correct operation of e-commerce, web, mobile and desktop applications
and IoT solutions. No special programming knowledge will be required for users.
We expanded the use of the Jira tool and through this solution supported many additional
processes, including the process of managing development needs.
We upgraded the retail solutions that support the operation of Petrol service stations in all
markets by supporting the tax certification of invoices in Montenegro, and we also supported
the possibility of paying with Routex cards in Croatia, Bosnia and Herzegovina and
Montenegro. We developed a closely integrated solution for the sale of e-vignettes for
Slovenian motorways. In December, we enabled the purchase of e-vignettes at all Petrol
service stations in Slovenia and Croatia.
The dynamics of changes in fuel and goods prices in service stations dictate the need for the
clear and digitalised communication of prices to customers. Therefore, in 2021, we have
developed support for integration with digital price lists to communicate fuel prices to
customers at points of sale. We also participated in the selection of a platform for the
digitalisation of the display of prices of goods in stores (electronic price lists). The
integration of the platform into Petrol's information system will be carried out in 2022.
In the field of IoT platform development, in 2021 we and our team actively participated in the
processes of the management, control and maintenance of the existing platform and began to
analyse the possibilities for its technological modernisation in the future. This will ensure
internal and external users (customers) even more reliable and stable operation and the more
friendly use of the platform, which is gaining an increasingly important role within Petrol's
strategic business goals.
We provide capacities and the high availability of the system and network infrastructure,
with which we effectively support business processes. We are increasing the use of cloud
services, so we have increased the availability of Internet connections from one to two
providers. We set up a uniform call centre for the whole group.
We have modernised and upgraded many existing and added a number of new integrations,
thus improving the communication and speed of internal processes and processes with our
partners.
The described activities were carried out in all the markets of the Petrol Group.
18.3 Concern for information security is a necessity, not a luxury
Universal digitalisation and global connectivity increase the risks of information security, thus
ensuring adequate information security is becoming an increasing challenge. With its wide
range of information services, the Petrol Group plays an important role in providing key
services for the preservation of essential social and economic activities, including energy and
transport.

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Technological innovations such as artificial intelligence (AI), 5G, blockchain technology, smart
cities and connected vehicles (IoT), and big data bring many benefits, as well as new threats
to cyberspace. In 2021, we continued activities at the Petrol Group level to strengthen
resistance to cyber-attacks, such as built-in security as a mandatory part of business
processes, regularly raising the awareness of users through social engineering methods,
mobile security management and security checks of exposed Petrol information system
components. In ensuring an appropriate level of information security, we follow all regulatory
requirements and good security practices (EU Cyber Security Strategy, PCI DSS, GDPR,
zInfV), thus setting an example to other organisations in the region.
HIGHLIGHTS:
x At the end of 2021, we completed the development of a new online shop, developed on a
modern technology platform, which brings a unified user experience.
x In 2021, we continued activities to strengthen resistance to cyber-attacks.

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SUSTAINABLE DEVELOPMENT
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19. Strategic orientations and goals for the sustainable development
of the Petrol Group
We have been wondering, measuring and promoting to what extent the Petrol Group is fit for
a green future since 2012, when we issued our first independent Sustainability report, even
when the legislation did not require us to do so and we visionarily set out on a demanding
sustainable path. Today, we are pursuing the EU Green Deal and commitments to achieve
climate neutrality by 2050. We are pursuing an interim goal for the EU to reduce emissions by
at least 55 percent by 2030, the regulation on green investments and taxonomy and high
national energy and climate targets.
With its strategy until 2025, the Petrol Group has committed itself to a decisive energy
transition, with which it is co-creating a green future and making an important contribution to
protecting the environment we live in. It will invest EUR 244 million in the energy transition by
2025, reduce its carbon footprint by 40 percent, and have 164 MW of installed capacity of
renewable energy sources.
Low carbon energy company
Decarbonisation is carried out in four main areas:
x We produce electricity and heat from renewable energy sources such as wind, water,
solar, biowaste and wood biomass.
x We ensure energy efficiency through a comprehensive range of energy and
environmental solutions for cities, businesses and households. We achieve energy savings
with a wide range of services, from the optimisation of heating, lighting and the energy
renovation of buildings to the addition of fuels and the
sale of energy-efficient household
appliances and e-bikes
.
x We are greening the energy mix by using alternatives to conventional petroleum energy
sources, so we are actively looking for and introducing more environmentally friendly fuels
for conventional motor drives. These include sustainable biofuels, natural gas and, in part,
liquefied petroleum gas. Biofuels are the most widespread group of alternative fuels and
are currently the key energy source with which we strive to achieve the prescribed share
of RES in transport. We are also continuing to add additives to make conventional fuels
more environmentally friendly. This is proven by Petrol's Q Max fuel family, especially Q
Max iQ diesel fuel, which reduces GHG emissions by 26 percent compared to conventional
diesel fuels.
x With e-mobility and the use of fuels that have lower emissions compared to petroleum
fuels, we mainly reduce the greenhouse gas emissions that occur during the entire life
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cycle of the fuel per unit of energy. Such alternative fuels include liquefied petroleum gas
and natural gas for vehicle propulsion.
A circular economy
Closed circular loops are an important approach to decarbonising the economy. Petrol is
developing and managing water and material cycle management models. We successfully
acquire and implement projects in the field of the digitalisation of water supply system
management. We are digitalising real-time management for our customers, optimising the
water supply network and thus reducing water losses.
Petrol manages four concessions for the treatment of municipal wastewater: in Murska
Sobota, Mežica, Sežana and Ig. As an important member of the company Aquasystems d.o.o.,
Petrol d.d., Ljubljana is also involved in the treatment of municipal wastewater in the
Municipality of Maribor. We also manage and treat wastewater at three industrial plants. We
recycle and reuse wastewater in our own automatic car washes.
As a retailer of consumer products, we are aware of the importance of the most sustainable
packaging and the responsible handling of packaging as possible throughout its lifecycle. We
removed excess packaging and optimised packaging from composite materials in the supply
of fresh food at Fresh outlets.
Integrated waste management is one of the important areas of sustainable development of
the Petrol Group, as it not only affects the protection of the environment but also the economics
of operations. We place great emphasis on waste prevention and efficient separation of waste
at the source. The range of our activities and points of sale affects the diversity of waste we
handle. At all Petrol locations, waste is separated at source, and the biggest challenge is
motorway rest areas, used as a stopping point for passengers in transit.
Partnership with employees and the social environment
People are at the very core of our operations, which is evident also during the COVID-19
epidemic. Health and safety at work come first, but we also offer customers custom, safe,
quality and healthy services. We highlight the development of state-of-the-art digital
solutions; the number of users of the “Na poti” mobile application, offering the possibility of
contactless payment, is growing rapidly. In addition to paying for fuel and car washing without
entering the sales area, we also added the purchase of a range of food products from the
shelves of Petrol points of sale to the application. We also introduced the delivery of Fresh
products, basic foodstuffs and other products to the home or workplace.
An important part of our digital story is e-learning. Due to the epidemic, the number of training
hours decreased; however, the number of training participants has grown, as we replaced all-
day live training courses with several different short training sessions in the form of e-courses
followed by a final test. E-learning also positively affects the environment. We drove less due
to remote learning and saved paper due to materials in electronic format.
Each point of sale received its own tablet, which allows entering into applications and archiving
documentation, using all tools for remote work, participating in groups and facilitating
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communication. The introduction of the new solution at points of sale was completed in the last
quarter of 2020 and the beginning of 2021.
As one of the largest companies in Slovenia, we understand our responsibility to society as a
lasting commitment to work together with the environment in which we live and operate. Among
the many important social responsibility projects, the humanitarian campaign Give energy for
life is worth mentioning.
We conducted an electronic survey of all key stakeholder groups. Results were presented
in a so-called materiality matrix in the last Sustainability report. Compared to the materiality
matrix two years ago, we note that topics of sustainable development, in particular the
contribution to low-carbon mobility and a low-carbon society, have become even more
important in the eyes of our key stakeholders. This gives the Petrol Group an additional
incentive to actively pursue our sustainability goals, including in terms of decarbonisation. In
the light of the epidemic, we also understand the greater emphasis of key stakeholders on
digitalisation and smart concepts, as with them, the Petrol Group facilitates purchases and, at
the same time, provides customers with a higher level of security in terms of health risks
through digital solutions. Compared to the previous measurement, strategic stakeholders felt
that maximising returns and value for owners was less important than some other priority
objectives.
At Petrol, we look to the future with inspiration, ambition and determination. We see it green.
This is our promise to the next generation, which puts sustainable development among the top
priorities.
Strategic perspective and increasing objectives
There are many challenges ahead. The bar of goals at the level of the European Union,
Slovenia and the economy is rising ambitiously. The new EU »Fit for 55« package includes a
number of legislative proposals and policy initiatives that will have a direct impact on the Petrol
Group's operations. It is a revision of the Renewable Energy Directive, the revision of the
Energy Efficiency Directive, the revision of the Alternative Fuels Infrastructure Directive, the
amendment of the Regulation on CO
2
emission standards for cars and combined vehicles, the
revision of the Energy Taxation Directive, and the establishment of a separate emissions
trading scheme for road transport and buildings.
The new rules of the game put sustainable development at the heart of operations, and
achieving sustainable goals is becoming a condition for competitiveness in the market. This is
reflected in the great interest of banks and other stakeholders in our sustainable results. All
employees are part of Petrol's commitment to remain competitive in the new conditions of
transition to a greener future with a winning sustainable readiness.
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Through our actions, we contribute to the achievement of the sustainability goals of the
United Nations
Sustainable development is one of the priorities of the Petrol Group. Due to its importance, the
Petrol Group has been publishing independent Sustainability reports every two years since
2012. In June 2021, we issued our fifth Sustainability report which is available at Sustainability
Report of the Petrol Group 2020 in Sustainability Report - video. The purpose of the
Sustainability report is to present more detailed sustainable strategic orientations and
challenges, goals, programmes, projects and results. Our activities are complex and
diversified; therefore, we are constantly formulating a methodology for sustainable
development, measurement, evaluation and reporting.
HIGHLIGHTS:
x Petrol is developing and managing water and material cycle management models.
x Decarbonisation is carried out through renewable energy sources, energy efficiency, green
energy mix and e-mobility.
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20. Responsibility towards employees
At the Petrol Group, we build a culture of mutual trust and respect, innovation and teamwork,
while also striving to provide a friendly, stimulating and dynamic work environment, as well as
opportunities for employee development.
20.1 Status of employees in 2021
The year 2021 continued in the light of the epidemic and restrictive measures in the wider
region, which continued to dictate regular work processes and set new emphasis on our
activities related to employee care.
At the end of 2021, there were 6,237 people employed within the Petrol Group and at third-
party managed service stations, of whom 47 percent are abroad. The share of employees
abroad increased by 12 percent compared to 2020. Namely, Petrol d.d., Ljubljana became the
sole owner of the company Crodux Derivati Dva d.o.o., which at the end of 2021 had 1,166
employees.
Compared to the end of 2020, the number of employees in the Petrol Group increased by
1,080 or 21 percent.
Number of employees in the Petrol Group 20182021
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Number of employees in the Petrol Group
At the end of 2021, the average age of employees was 40 years.
58 percent of employees were male and 42 percent female. The gender balance differs across
companies depending on the activity of each company.
Because our core business is retail, the highest proportion of Petrol Group employees have
level V education (secondary education).
The Petrol Group’s education structure as at 31 December 2021
20.2 Recruitment
Recruiting the right experts to the right posts is the key to achieving our business goals.
Attracting top external experts, a diverse pool of in-house staff and scholarships constitute
important components of the business growth plan.
During the selection and recruitment process, all candidates are given equal treatment
irrespective of gender, age or other circumstances. Acquiring the right staff is becoming
increasingly challenging, that is why we look for candidates through different channels. We
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engage external partners and look for new employees on social networks. We have set up our
own recruitment database to find new staff quickly and efficiently. In recruitment and selection,
we use different psychological tests and in-depth interviews.
Petrol's system of human resources development, continuous employee education and
training also provide for a diverse selection of internal human resources. The high level of
qualification enables our staff to quickly adapt to changes and also take advantage of internal
vacancies to find challenges in new areas of work within the Petrol Group.
20.3 Remuneration and motivation of employees
The Petrol Group's remuneration systems are aimed at motivating employees to perform even
better and increasing satisfaction. Salaries consist of fixed and variable parts. Different groups
of employees have different remuneration systems that are used as a basis for calculating the
variable part of the salary. At the Petrol Group, most employees either have access to the
point-of-sale remuneration system or to the remuneration system for corporate functions.
Point-of-sale employees receive the variable part of their salary in the form of a monthly
performance bonus based on the productivity of a point of sale. They receive an additional
bonus for maintaining or improving the quality of operations. Employees are also remunerated
by taking into account the results of reward and sales promotion campaigns, especially
regarding the sale of new products and services. We select and reward the best salespersons
in each country, and we also reward employees at the best-performing points of sale.
In 2021, we upgraded the reward system for points of sale with the “Point of Sale Champions”
system, in the framework of which the top 10 percent of Petrol Group points of sale in Slovenia
were identified and additionally awarded.
The job performance of employees in corporate functions is monitored through quarterly
interviews and is remunerated according to whether their goals have been achieved or
surpassed.
Employees receive jubilee benefits in appreciation of their loyalty to the Company. At the end
of the year, employees also receive a performance bonus, which is linked to the Company's
performance.
At Petrol, the voluntary supplementary pension insurance of employees has been part of
the salary policy since 2002. The scheme covers the employees of the parent company,
subsidiaries and third-party managed service stations in Slovenia.
In 2021, we continued to meet the changes brought to labour law by the COVID-19 epidemic.
Employees were provided with appropriate compensation for absence due to force majeure,
quarantine and furlough, as well as benefits and compensation for short-term sick leave. We
also kept the employees informed about their possibilities and rights under the law.
20.4 Quarterly and annual staff management based on goals and feedback
We systematically monitor work performance with goal-oriented management. Quarterly
interviews as a tool of leadership and motivation enable regular structured dialogues between
superiors and co-workers, represent the basis for rewarding individual performance based on
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criteria and key performance indicators in accordance with the system of rewarding corporate
functions and represent the possibility of honest dialogue and feedback. In 2021, 1,085
employees took part in quarterly interviews. 550 employees, who are subject to another
remuneration system, took part in annual interviews and the annual setting and monitoring of
the achievement of goals.
20.5 The pandemic is accelerating digital development
Knowledge ensures a successful integration of individuals into the business processes and
creates long-term competitive advantages for an organisation. That is why we consider
investments in employee training and development an investment for the future. Staff
education and development are intertwined with numerous business and support activities,
resulting in trained and committed staff that is motivated to achieve current and future goals.
The Company's values are a common bond connecting the employees. They are strengthened
and communicated through all internal communication tools and integrated into the general
competencies model. To promote them even more among employees, we use different
systemic measures.
There was a major shift in the way we do training, socialise and work in 2021. Where permitted
by the work process, telework was introduced, requiring a series of adjustments, the rapid
acquisition of new computer skills and new approaches to teamwork. It was only possible to
conduct live training for a few months, and we organised distance training with the help of
digital tools throughout most of the year. We also prepared several in-house electronic training
materials, and our knowledge was tested with short quizzes.
Operations at points of sale were also digitalised, as the tablets purchased for each point of
sale enabled interactive work via the online platform Teams by employees in the sales network
for training purposes. Even more importantly, we digitalised the document system for
managing operations at service stations.
20.6 Training in figures
In 2021, the Petrol Group conducted 88 thousand pedagogical hours of training and recorded
34 thousand participations. On average, each employee attended at least 6 different courses.
We achieved 19 percent more participations than in 2020, and we also increased the number
of hours by 19 percent compared to the previous year. We have still not reached the level of
training from the period before the epidemic, but the trend is positive both in participation and
the time we spend acquiring new knowledge.
We replaced all-day live training courses with several different short training sessions in the
form of e-courses followed by a final test. The effectiveness of the training courses is
checked by conducting regular surveys of participants after the end of the training, and the e-
classroom offers analytics for the results of final knowledge quizzes. Recordings of training
content and internal round tables are available online, and the number of views is increasing
daily.
In 2021, we conducted training for SAP modules, deepened our knowledge of Excel, we
provided language courses to our staff and organised all legally required training programmes
for them. Unfortunately, we had to give up some programmes based on practical group
exercises. For professional content, we looked for alternative options for self-learning, e.g.
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the Udemy learning platform. In 2021, the fourth Project Management Academy took place,
which brought together 24 existing and future project managers working with 17 external and
Petrol's in-house lecturers and experts. In the Petrol Group, particular attention is also given
to the training of external staff and customers. In 2021, 811 external participants took part in
our training courses.
Training in the Petrol Group is systematically arranged for many target groups in the sales
and technical departments. Certain programmes are mandatory for all employees and are
largely carried out in the form of distance self-learning (for example, on occupational safety,
information security, and the security of card operations, food handling). With the number of
products and services available to our customers increasing. With the introduction of the new
generation of Q Max fuels, we organised online presentations for managers, and prepared an
e-course for employees, which was sent to all employees in retail in Slovenia and in
subsidiaries in the markets of SE Europe. We empowered the point of sale managers with
knowledge of business economics; we will continue the programme in 2022.
As part of Open Space, we organised 50 different online events, thematically related to
occupational health, knowledge, skills, sustainability and current projects. The events were
organised as live online presentations, and the recordings are available to all employees in the
archive in the cloud.
Learning Centres in Zalog, Rače and Nova Gorica organised induction seminars for newly
recruited sales personnel in 2021, but the number of participants was greatly restricted, as
required by the epidemiological services. In a simulated shop environment, future and
current employees are trained in sales skills. The sale personnel is trained by the network of
internal coaches in Slovenia who all have the appropriate skills and knowledge to conduct
training and workshops. The network of internal coaches in SEE markets comprises 12
coaches. Every year, we renew our internal certificates and we are committed to maintaining
the quality of the coaching skills. The learning centre makes it possible to train new employees,
to refresh or gain knowledge, to practice sales skills and to acquaint all sales personnel with
major novelties. This way, we consolidate knowledge, strengthen the standard of sales skills,
reduce the managers’ burden related to the induction of new employees, reduce stress upon
onboarding, and decrease the risk of mistakes at work. We aim to transfer good practices in
Slovenia to foreign markets, thus allowing for the systematic development of staff in all markets
where we operate.
Micro-learning is a new way of learning that we have introduced in the retail network. We
published A Minute for Sales videos on a weekly basis, in which an internal coach presented
methods and techniques for improving sales skills and presented examples of appropriate
customer relations.
We were able to perform the traditional Best Seller competition live again at the point of sale.
Twice a year we reward sales staff who are the so-called stars of mystery shopping with an
award and a special event, which demonstrates that they achieved the best score in an
anonymous assessment of the sales process.
We repeated the implementation of the Sales Academy for 48 new sales representatives and
salespersons in the Petrol Group. Among them, we also identified potentials for internal
coaches that will be included in additional training programmes. Coaching culture is already a
recognised way of developing sales teams. The network of internal coaches ensures that the
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knowledge and skills acquired in classroom training are transferred into daily practice. Each
sales channel has assigned coaches for whom we have prepared e-training that took place in
an internal online classroom. Coaches use a coaching platform for their work, on which they
monitor the implementation of coaching plans.
20.7 Petrol has a full Family Friendly Enterprise certificate
Petrol d.d., Ljubljana has a full Family Friendly Enterprise certificate. Within the programme
linked to this certificate, a series of activities are carried out to maintain a balance between
private and working life.
In 2021, we organised a Petrol Family Day at the Ljubljana Zoo with a rich programme,
designed together with our partners, the Automobile and Motorcycle Association of Slovenia,
the Traffic Safety Agency and the management of the Zoo. More than 600 Petrol volunteers
and their family members responded to the invitation to Sunday's gathering at the Zoo.
During the fall holidays, we organised an Open-House event in the Petrol office building for
the children of our employees, however, due to the COVID-19 situation we were unfortunately
only able to accept 30 children.
Measures to facilitate the reconciliation of work and family responsibilities include a gift
package for newborns, work at home, an adjusted working day when introducing a child to
kindergarten, development plans, intergenerational cooperation through mentoring and many
others. The traditional puppet show with gifts from Santa Claus took place remotely. We filled
the households with laughter with a stand-up comedy show, we were visited by Petrol's Santa
Claus, and we watched all this through our screens due to restrictive measures.
20.8 Petrol volunteers and humanitarian projects
With corporate volunteering under the name We Give Back to Society, Employees in Slovenia
have been supporting the socially responsible orientation of the Company and at the same
time strengthening the interconnectedness of all those participating in individual campaigns for
the tenth year in a row. Participants learn and deepen social skills in voluntary activities, and
volunteer action coordinators also learn project management skills. Through corporate
volunteering, Company loyalty grows, as well as the Company's reputation among recipients.
In 2021, as many as 70 Petrol volunteers landscaped in ten work campaigns across Slovenia,
helped with household chores, painted walls, erected fences, prepared firewood and offered
their help to the animal shelter. We dedicated more than 300 hours of work to these campaigns.
We raised money for our colleagues in Petrinje whose homes were destroyed by an
earthquake, swimming aids for holidays at sea for children from socially disadvantaged
families, and in December we became Petrol's Santa Clauses and prepared 165 packages for
children and delivered them to the Slovenian Association of Friends of Youth Ljubljana Moste
- Polje. During the pre-Christmas period, Petrol employees handed out letters of good wishes
to the elderly in a home in Bokalci.
20.9 Healthy at Petrol programme
Petrol ensures the health and well-being, physical and mental balance within the Healthy at
Petrol programme. The basis for the implementation of this programme is the strategy for the
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20202022 period, which is based on a six-year analysis of the sick leave of employees and
occupational medicine reports received by the Company after medical examinations. In
addition, a survey was conducted among employees, where we were able to give our
suggestions and wishes related to psychophysical problems and needs at work.
Based on both analyses and research, three areas were identified as priorities for the planning
of measures to promote employee health physical health, healthy eating and mental health
while all three pillars are connected by topics of a seasonal nature (e.g.: the prevention of
respiratory infections and other seasonal viral diseases, preparation for various sports
activities).
At the end of 2021, we conducted an additional in-depth analysis of sick leave for the past two
years. The data does not show deviations from the previous period or the set strategy (the
exception is the COVID-19 viral conditions). Therefore, in 2022, we will continue with the
planned activities of the Healthy at Petrol programme. As in the past two years, we will pay
special attention to preventing the spread of COVID-19 infections and ensuring our maximum
safety.
In 2021, the majority of the Healthy at Petrol programme took place via the online platforms
Teams and Zoom. The most important activities in 2021 were:
x training entitled Health of the spine and locomotor system (297 participants in 2021);
x active breaks during work videos and guided training via the Teams platform;
x individual consultations via the Teams online platform (with physiotherapists, kinesiologists
and occupational physicians) and psychological help in the field of mental health by phone
or video call (24/7);
x Open space: hosting experts from various fields of health and healthy lifestyle (via online
platforms Teams or Zoom).
As part of the Connected in Awareness programme, we conducted two major regional
events that took place live throughout Slovenia:
x In May and July we were challenged by the 2 km fast walking test. Testing took place in
nature, taking into account all appropriate safety measures.
x During Pink October, the Petrol volunteers joined the Europa Donna campaign in their own
way. We encouraged our employees to contribute kilometres by walking or running and to
take part in the Europa Donna Race for the Cure campaign. Alone or in the company of
friends and family, they walked or ran 1,231 kilometres for this cause.
The Petrol Tennis League was also held in summer, and in December we enabled employees
and their family members to skate on three major professional ice rinks.
A large part of our activities in 2021 was dedicated to the preparation and communication of
measures to prevent the spread of COVID-19 and to ensuring the utmost safety of our
employees. We prepared posters, articles, instructions, a film about the effective washing and
disinfection of hands and work surfaces, and regularly supplied disinfectants and cleaning
supplies at all locations in Slovenia. We also transferred good practices to our companies
abroad.
We regularly organised COVID-19 testing co-funded by the state. From January to June, 164
testing dates were organised at various locations across Slovenia. 4,605 tests were performed.
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20.10 Organisational climate, satisfaction and commitment of Petrol Group employees
We measure the organisational climate survey every two years (most recently in 2020), and
we are implementing action measures that we have adopted on the basis of measurements in
2020. The survey has been helping us to systematically identify our own strengths and areas
for improvement since 2001.
All employees in ten Petrol Group companies are included in the survey. In 2020, 3,246
employees, or 70 percent, submitted their scores and comments. As in the previous years, we
are pleased to say good results were achieved. The organisational climate remains stable. The
comparison of the results with other companies in Slovenia shows that we are much more
satisfied than the average employee of other Slovenian companies. We improved internal
cooperation and employee relations; our employees are proud to be a part of Petrol and are
committed to quality. Internal knowledge transfer is an important value of the Company. Since
2010 we have been monitoring the commitment of our employees, since 2017, their agility and,
since 2018, the perception of equality. The share of actively non-committed employees has
been declining for several years, and in 2020 it fell by an additional 3 percent. This has
considerably improved the so-called macro-indicator of the organisation's internal stability.
Organisational climate, satisfaction and commitment of Petrol Group employees
20.11 Internal communication and bringing people together
Development and communication of a corporate culture of sustainability include the
communication of work culture, organisational changes and the transformation of activities,
and from the point of view of the desired employer, include the development and
communication of workplace wellness programmes and programmes that build good
communication and atmosphere in work environments (mentoring, Open space, We give back
to society, You accept the challenge?).
In 2021, we carried out a year-round internal I Drive Q Max campaign, through which we
strengthened our employees’ knowledge and confidence in the quality of fuels. During the year,
we also constantly communicated the new Strategy of the Petrol Group 20212025. In support
of the implementation of the strategy, we have formed a network of internal ambassadors of
change, who receive information through workshops to facilitate understanding of the strategy
and learn about the Company's strategic initiatives. This way, management obtains valuable
feedback from employees, strengthens dialogue and gains a broader understanding of work
areas. As part of internal communication in the area of employer branding, we presented the
stories of our employees again in 2021 to consolidate the Company's organisational culture,
showcase jobs, networking stories and the stories behind the different faces and
accomplishments. We also shared tips on Q Max fuels and stories of creativity through staff
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profiles. Creativity was also boosted through internal contests, stories of courage and bringing
people together. In internal journals, we presented managerial, organisational, process and
business change in more detail. In 2021, we again intensively communicated all the changes
brought about by the epidemic, from measures to prevent the spread of the virus to
teleworking.
20.12 Occupational safety and preventive medical check-ups
In the Petrol Group, we realise that occupational safety and health, in addition to their main
purpose, also ensure the satisfaction of employees. That is why we strive constantly and
systematically to reduce the level of risk arising from working processes by introducing
appropriate organisational and security measures. Although the working environment is
changing owing to the development and introduction of new technologies and procedures,
Petrol successfully keeps up with the changes. We look for solutions that are healthier and
safer for our employees.
All companies of the Petrol Group have adopted safety declarations with risk assessment. The
latest findings in occupational safety and health are integrated into new processes and
projects. In addition, we monitor the risks related to the occurrence of accidents and injuries.
The risks are assessed periodically and, through safety measures, maintained at an
acceptable level. A priority in the advancement of occupational safety and health is the
reduction of risks at highly exposed workplaces and seeking links with other areas of safety,
in particular fire safety, environmental protection and chemical safety.
The programme of preventive medical check-ups includes all staff in the Petrol Group.
Particular attention is devoted to co-workers with reduced working capacity.
Considerable attention is paid also to the theoretical and practical training of employees in
occupational safety and health, workplace ergonomics, fire safety, environmental protection,
the safe handling of chemicals, the safe transport of hazardous goods and first aid.
HIGHLIGHTS:
x At Petrol, the voluntary supplementary pension insurance of employees has been part of
the salary policy since 2002.
x In 2021, the Petrol Group conducted 87,900 pedagogical hours of training and recorded
34,003 participations.
x Petrol has a full Family Friendly Enterprise certificate.
x Internal research shows that we are much more satisfied than the average employee of
other Slovenian companies.
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21. Responsibility towards customers
In the new strategy of the Petrol Group, we place great emphasis on continuously improving
the user experience. We place the customer/user at the centre of our operation both in the
development of new products and services and in the interaction with the customer at an
individual point of contact.
The vision of Petrol is to become an integrated partner in the energy transition offering an
excellent user experience. Establishing and caring for customer relationships is our priority,
and with new digital channels, an expanded range of energy sources and a personalised offer,
we will get even closer to our customers and thus provide them with an excellent user
experience.
21.1 An excellent user experience is the foundation of future growth
By providing an excellent experience, we develop customer relationships, increase loyalty,
promote embassy, differentiate ourselves from the competition and, last but not least, improve
business results.
At the heart of the user experience is the customer and understanding their needs,
expectations, desires, motivators and behaviours. To achieve a great user experience, it is
important to manage that user experience at all points of contact. New market conditions have
greatly encouraged the digitalisation of users, so it is equally important to ensure an excellent
user experience at digital points of contact. With the increase and complexity of contact points,
managing the user experience is becoming increasingly demanding. In order to meet the
expectations of our customers, it is extremely important to know their shopping routes,
preferences, as well as the importance and intertwining of points of contact.
For years, Petrol has been applying various methods to monitor all phases of the purchasing
process at individual points of contact with the customer. We regularly add new channels to
the measurements. At regular intervals, we check the expectations and preferences of
customers, both our existing ones and those of our competitors. We use the information
obtained from customers to improve our offer and user experience on a regular basis.
One of the key indicators of monitoring the user experience is measuring user satisfaction. At
Petrol, we monitor customer satisfaction at all important points of contact, as well as in
comparison with the competition.
The most important elements that affect customer satisfaction and consumer experience, in
addition to the price and quality of products and services, which is a key element in all
categories/areas, are the following:
x accessibility and orderliness of points of sale and toilets;
x friendly and professional staff;
x fast and easy services;
x rewarding customer loyalty;
x complaint handling.
All the stated factors, if they meet and exceed customer expectations, are components of an
excellent user experience, which is one of our strategic foundations and sources of future
growth.
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Important elements that have the greatest impact on satisfaction and user experience
Source: Petrol Satisfaction Survey 2021, Slovenia; n = 1,016
Growth of satisfaction of Slovenian customers at most points of contact in 2021
An analysis of the results of the Petrol Satisfaction Survey for 2021 shows that Petrol's
customers in Slovenia rated higher satisfaction at most points of contact. The highest
satisfaction and at the same time the greatest growth in satisfaction is at the Contact Centre,
which is one of the key contact points for customer care. This is followed by high satisfaction
with digital contact points (applications, online store). Progress has also been made in the field
of e-charging stations, where we achieved a 20 percent increase in satisfaction in the years
from 2019 to 2021.
Source: Petrol Satisfaction Survey 2021, Slovenia; n = 1,016
In 2021, for the first time, we measured the satisfaction of Petrol's customers and the
customers of competitors in key areas on the Croatian market. The users of Petrol's mobile
applications expressed the greatest satisfaction, while Petrol resolves complaints best of all
the selected competitors.
In Serbia, too, in 2021, the satisfaction of Petrol service station customers and key competitors
was measured for the first time. Petrol has the largest share of the most satisfied users among
all the observed competitors, as well as the lowest share of detractors - i.e. those who would
not recommend our experience and would speak ill of it in any way.
User experience Petrol's biggest advantage
With the annual Brand Power study, which we conduct in all five markets (Slovenia, Croatia,
Serbia, Bosnia and Herzegovina and Montenegro), we follow the image of Petrol and Petrol's
brands in the general public, while observing how our competitors are positioned among
customers. The selected data shows us the success of the progress in the activities we set
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ourselves last year, all with the aim of realising Petrol's vision: »To become an integrated
partner in the energy transition with an excellent user experience. «
Throughout the years of measurement, Petrol has been the strongest brand in terms of service
stations, and it will maintain its leading position in terms of brand image in 2021. However, an
excellent user experience proves to be our greatest advantage over the competition.
2021 brand image compared to market share
Source: Brand Strength Survey 2021, general public, Slovenia; n = 1,022
In the SEE markets, where Petrol is not the leading player, our strongest dimension remains
the user experience, and by far the highest awareness among all the assessed attributes is
achieved by our friendly employees.
The image of the brand in the service stations category is most significantly affected by high-
quality fuel. It is with this awareness that we have further improved the quality of Q Max fuel
in 2021 with the new innovative and even improved Dual Action Technology, developed by
Afton Chemical from the United Kingdom. We supported the launch of the improved Q Max
fuel formula in all markets where Petrol’s sales network is present with excellent
communication, which was perceived by customers and expressed in the mentioned research.
All this is reflected in the growth of the power of the Q Max brand in all markets.
Power growth of the Q Max brand over time (20162021)
Source: Brand Strength Survey 2021, general public, Slovenia; n = 1,022
In addition to the primary purpose - refuelling - as many as 41 percent of Petrol customers visit
a service station in order to indulge themselves with our best Coffee-to-go. Our Coffee-to-go
is the leading coffee among buyers of coffee-to-go. More than half of coffee-to-go drinkers
prefer to buy it at our service stations. Among all Petrol Coffee-to-go customers, as many as
96 percent are satisfied. In addition to its wide availability, it is largely attributed to its unique
taste and quick and easy preparation.
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Coffee-to-go customer satisfaction in 2021
Source: Petrol Satisfaction Survey 2021, Slovenia; n = 1,016
The key focus is to consolidate the leading position of the energy company and the leading
partner in the energy transition by developing and strengthening its presence in the supply and
sale of natural gas and electricity, sales of liquefied petroleum gas and energy efficiency
projects. Therefore, it is important to monitor customer responses and customer satisfaction in
this activity as well. In 2021, we improved processes in Slovenia and exceeded customer
expectations, especially in the transition process, as users praised the satisfaction with the
simplicity and responsiveness in the process of changing their energy provider.
Maximum increase in satisfaction with simplicity and responsiveness in the transition
process
Source: Petrol Satisfaction Survey 2021, Slovenia; n = 1,016
The highest growth in satisfaction in the Slovenian market was achieved in electric mobility,
which is an important pillar of Petrol's sustainable and innovative operations. Users place great
emphasis on the reliability of e-charging stations. Due to this, we focus our activities on
expanding the network and controlling the operation of e-charging stations, which is also
reflected in higher customer satisfaction in this area.
Satisfaction index from 2019 to 2021 increased by 20 percent
Source: Petrol Satisfaction Survey 2021, Slovenia; n = 1,016
21.2 Monitoring and responding to customer comments
We have been measuring transaction satisfaction for four years using the internationally
established NPS (Net Promoter Score) index. It enables us to monitor and respond to customer
feedback on a daily basis on all key contact points of Petrol the entire retail network, TipStop
Vianor service workshops, the call centre and customer support, complaints, the Petrol Energy
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Centre and online shop, where customers give their score after purchase and after picking up
a parcel at the service station. In 2021, we received more than 28,000 ratings and increased
the response compared to 2020 by 13 percent. In 2022, we are expanding the measurement
of transaction NPS to other Petrol contact points, as well as to other markets where we are
present.
Assessment of TNPS at the most important contact points
Customers come into contact with Petrol mostly at service stations, followed by the Contact
Centre and customer support, eShop, complaints and TipStop Vianor service workshops.
Petrol thus enables customers to immediately provide feedback on satisfaction with products,
services or processes on a particular channel, and at the same time, it can respond quickly
and eliminate any problems.
Our total TNPS-index (total estimate of all the measured contact points), calculated on the
basis of received ratings, shows a positive trend, which means that customer satisfaction at
contact points has been improving over the years.
2021 was special because of the epidemiological situation and related measures, such as
checking the RVT condition and other measures that both businesses and consumers had to
follow. By taking into account customer feedback, we have constantly upgraded and improved
activities that have improved our customers’ shopping journey and experience at service
stations, the Contact Centre and digital points. At the same time, user expectations were rising.
At the end of the year, rising energy prices and the introduction of the RVT condition also
reflected in declining customer satisfaction. Thus, growth in TNPS stopped in 2021 and
amounts to 76, which is still above the level of 2019, but it decreased slightly compared to
2020.
Source: Transaction Satisfaction (TNPS), 2021, n = 28,320.
Regardless of the circumstances, more than 80 percent of the customers are our promoters,
who express high satisfaction with the friendliness and helpfulness of employees at service
stations.
Source: Transaction Satisfaction (TNPS), 2021, n = 28,320.
TNPS growth of 27 percent
from 2018 to 2021
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We listen to the users and get to know their wishes and needs in detail
Most improvements and development of new products and services happen in response to
different or changing customer needs. Customers participate in many improvements by
contributing to the co-creation of the offer in various ways. We invite them into focus groups,
talk in-depth with them to really understand their wants and needs, explore pain and test ideas,
prototypes at all stages of development of a process, service or product.
This kind of agile mindset and approaches to innovation and re-innovation have resulted in the
modification and upgrade of more than 10 business models in 2021. Improvements have been
made in the field of comprehensive complaint resolution, the purchase of Petrol solar power
plants, we tasted Coffee-to-go and confirmed the scrumptiousness of our Fresh burger
Members of the Petrol Research Panel are always invited to test and innovate, as they are our
invaluable source of inspiration for important improvements.
Members of the Petrol Research Panel appreciate our efforts and are happy to be able
to help shape Petrol's offer
Petrol’s survey panel has been active for four years. Our community comprises over 4,000
members, who have worked with us on 66 development topics during this time. In 2021, they
completed 15,725 questionnaires and helped us deepen our understanding of user habits and
expectations in 18 areas. They told us what Green Electricity means to them, helped us design
the Gold Coupons offer, told us what additional services have the potential to be introduced
for all Petrol customers, suggested a set of ingredients for sandwiches, assessed Coffee-to-
go and confirmed the awareness of using the Barcaffe brand. Together we discovered the user
portal and the “Moj Petrol” application, researched the knowledge of instalment payments and
various limits with the Petrol Club Payment Card, touched on energy solutions and talked to e-
charging users about potential new locations. They helped to upgrade the “Na poti” application,
shared their views on Sunday shopping and also chose a more likeable image for our points
of sale.
Source: Petrol, 2021
As we strive to be better and better at designing our research, we are interested in what our
loyal panellists think about the research in which they participate and we listen to their
suggestions for improvements.
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Source: Petrol, 2021
21.3 Friendly and professional staff are key to ensuring customer satisfaction
Employee satisfaction is an important condition for providing an excellent user experience, as
it is reflected in the quality of internal services and efficient teamwork. Measuring satisfaction
with internal cooperation is an important contribution to business excellence, as the quality of
the internal services provided consequently affects the satisfaction of external customers and
business partners as well.
Just as we regularly monitor the satisfaction of our customers, in 2021, we introduced the
annual (previously biennial) Satisfaction with Internal Cooperation survey with support
services.
Around 1,800 Petrol Group employees were included in the survey, who assessed
organisational units in reliability, competence, communication, relationships and commitment,
and overall satisfaction.
Each support unit receives an insight into their operation in the internal market and information
on where it can be improved from all units and companies in the group that supports them. We
also ensured the respondents’ satisfaction and greatly shortened the assessment time by
optimising the questionnaire. As a result, the response increased by 21 percent compared to
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the last measurement, which gave us a greater and more in-depth insight into the cooperation
with support functions.
21.4 Brand loyalty Petrol Club
Continuing restrictions on the movement of people and epidemiological conditions, the net
growth of new members of the Petrol Club in Slovenia remained on a par with the previous
year. Gold Points remain the main currency of the Petrol Club and were accumulated on Petrol
Cards by purchases or rewarded actions by 16 percent more than in 2020. The number of
redeemed Gold Points also increased by 7 percent compared to last year. In 2021, 4 percent
more members were active per month than in 2020. The “Na poti” app has become user-
friendly; in addition to simply paying for fuel without entering the service station, it also enables
a friendly overview and use of the Petrol Club's benefits. With the Petrol Club members, the
use of the “Na poti” application increased by as much as 56 percent.
In 2021, we issued five editions of the Petrol Club catalogue, offering an average of 200
products at affordable membership prices. Purchases with Gold Points represent on average
68 percent of sales revenue from products in the catalogue. In addition to the catalogue offer
for Gold Points, members are interested in special discounts at points of sale, in the form of
Gold Packages and products for EUR 0 or EUR 1, as well as offers on special occasions, such
as so-called November Black Friday as part of the eShop or New Year's offer at service
stations. We additionally reward the loyalty of our members with quarterly benefits, which are
personalised and deposited on the Petrol Club card.
Prize games, which exclusively Petrol Club members can participate in, have become a
constant. In 2021, we rewarded our loyal customers with prizes such as refunds to their cars,
air conditioning or sports equipment, and last but not least, two lucky winners each with one
Ford car and one lucky winner with a prefabricated house.
The summer of 2021 was marked by the Tokyo Olympics and the first Gold Points campaign
to donate. With the help of Petrol Club members, we raised the planned number of Gold Points
for the Sponsorship in sports project in less than three weeks. Petrol donated money in return.
Because of their efficiency, we will continue all the listed campaigns next year as well.
Petrol’s Contact Centre: 080 22 66
21.5 Petrol’s customer support and Contact Centre
Petrol’s customer support and Contact Centre are key points of contact between customers
and Petrol in Slovenia. Here, the support and sales functions for different products and services
are closely intertwined. We offer our customers all the key information about Petrol's offer in
one place, be it fuel, energy, Petrol Cards, loyalty programme, Petrol eShop online store,
mobility services, energy or environmental solutions. We are aware that customer feedback
and opinions are of utmost importance, so we measure satisfaction with our services on all key
communication channels. In 2021, we paid special attention to the changed situation, so we
introduced additional digital communication channels: live chat with a consultant, a chat robot
and a video call.
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21.6 Customer claims and complaints handling
Petrol is committed to the highest standards of business ethics, we know the expectations of
our customers and we strive to fully meet them. High-quality products and services are one of
our principal business commitments, which is why we handle each case of customer
dissatisfaction with great care. We are aware that the feedback we receive about our products
and services directly from our customers is very important and that, based on them, we can
improve and thus build a long-term relationship with customers. Claims and complaints are
reviewed systematically and measures are introduced to improve the quality of our processes
and user experience in practice. To ensure an excellent customer user experience, in 2021 we
improved the unified system of capturing and managing customer claims and complaints in
Slovenia in terms of process, information and organisation, and we plan to continue the project
in 2022.
HIGHLIGHTS:
x In the 2021 satisfaction survey, Petrol's customers expressed higher satisfaction at most
points of contact.
x Petrol's Coffee-to-go is the most popular coffee among buyers of coffee-to-go.
x More than 80 percent of the customers are our promoters, who express high satisfaction
with the friendliness and helpfulness of employees at service stations.
x Petrol's research panel has been active for four years and includes more than four
thousand members.
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22. Responsibility to the natural environment
Caring for the environment is integrated into all aspects of the Petrol Group's operation, as
demonstrated by our ISO 14001:2015 certificate for environmental management system.
When developing business processes, along with new products and services, we always
comply with all environmental regulations, introduce products and services that are friendlier
on the environment and pay attention to efficient energy consumption. We use our compliance
assurance system to monitor and implement regulations and get involved in their preparation.
We identify the environmental aspects of our activities by taking into account the usual and
extraordinary operating requirements, as well as exceptional circumstances, if such exist. In
order to maintain the environmental management system and effectively manage
environmental aspects, we are updating documentation in the field of environmental protection.
The Petrol Group implements its processes in such a way that they affect the environment as
little as possible.
Emissions to air
In the Petrol Group, caring for the quality of air chiefly involves efforts to reduce the emissions
of volatile hydrocarbons on an ongoing basis. It also stands for measures to reduce the
emissions of ozone-depleting substances and fluorinated greenhouse gases and measures to
reduce greenhouse gas emissions from heat and electricity production and distribution.
The emissions of volatile hydrocarbons occur due to evaporation during the decanting and
storage of fuel. At Petrol, the process of reducing volatile hydrocarbon emissions is part of all
three key elements of the petroleum products distribution chain: storage, transport and sales.
At service stations and fuel storage facilities, we have installed systems for the closed loading
of storage tanks. In addition, we make sure to install state-of-the-art cooling, air conditioning
and heating systems and devices. We ensure the efficiency of emission control by continuously
upgrading equipment and installing new systems, in accordance with the guidelines for the
best available techniques and regular inspections by authorised contractors. We have obtained
environmental permits for all emissions to air that are regulated by law and we monitor them
as legally required.
Noise emissions
Petrol carries out operational monitoring and professional assessment of noise pollution in
individual areas to be able to reduce the nuisance through noise and to implement certain
measures for it to go down. These activities are carried out in accordance with the Decree on
Limit Values for Environment Noise Indicators and by creating a 3D model that takes into
account the characteristics of a site: its location, land development, landform and
infrastructural characteristics, etc.
Wastewater
Petrol Group’s operations currently involve three categories of wastewater: rainwater, sewage
water and industrial wastewater. Rainwater that comes into contact with functional circulation
areas is collected separately and purified in oil and water separators. Sewage water is handled
in three ways. In built-up areas, it is channelled into a local sewage network. Where connection
to a sewage network is not available, small treatment plants are installed. Some sites, however,
still use cesspits, which are maintained on a regular basis. At these sites, cesspits are being
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discontinued according to schedule in accordance with legal requirements. For small treatment
plants to function efficiently, the choice of wastewater purification technology is vital, as is the
regular professional monitoring of their operation and their management. Industrial wastewater
is treated in state-of-the-art industrial treatment plants.
The results of analyses of the content and value of emissions from wastewater disposal show
that the wastewater quality at Petrol's sites is at an appropriate level. Adequate wastewater
status is ensured by the planned and systematic installation of appropriate modern treatment
plants and technically appropriate and prescribed oil traps, and in parallel, we monitor the
consumption of cleaning agents, draw attention to the care in the maintenance of cleaning
devices and the need for awareness, control and supervision by employees.
We have obtained environmental permits for all emissions to water that are regulated by law
and we monitor them as legally required.
Waste management
In order to ensure the better utilisation of substances and energy and the generation of less
waste, thus reducing the negative impacts on soil, water, air and biodiversity, the Petrol Group
operates in accordance with the principles of the circular economy. In waste management, we
take into account legal and other requirements and environmental policy, which is part of our
environmental management system. When establishing new and revising old processes, we
take into account the hierarchy of waste management; we also pay special attention to waste
that can be hazardous to the environment.
Integrated waste management is one of the important areas of the sustainable development
of our Company, as it not only affects the protection of the environment but also the economics
of operations. We place great emphasis on waste prevention and efficient separation of waste
at the source. The diversity of our activities and points of sale affects the diversity of waste that
we handle and manage.
When developing own-brand products, the aspect of final waste disposal and of the packaging
and its environmental impact are also taken into account. We have prepared sustainability
criteria for product procurement and guidelines for product design, which will be the basis for
changing products into more sustainable ones, and will contribute to closing product life cycles
in the long run and ensure the sustainable use of resources.
Light emissions
An aspect of environmental pollution that the Petrol Group pays close attention to is light
emissions into the environment. These include direct or indirect inputs of artificial light into the
environment, which cause an increase in natural light.
In addition to the rehabilitation of street lighting, the Petrol Group decided to dim the lighting of
canopy borders, totem signs and pylons and to turn off all unnecessary street lighting and lights
in stores, at all points of sale when the point of sale is closed. These measures further help
reduce light pollution.
At Petrol, we are aware that excessive lighting of the environment is a serious problem. By
choosing appropriate solutions and modern lamps, with which we directed the light where it is
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needed, we significantly reduced electricity consumption while significantly reducing light
pollution.
Prevention of major accidents
Petrol d.d., Ljubljana operates seven facilities posing a minor or major risk to the environment
(so-called SEVESO plants). In keeping with the Framework Safety and Security Policy, Major
Accident Prevention Concept (Petrol's safety focus) and the Safety Management System, a
number of activities laid down in environmental risk reduction concepts, safety reports and
protection and rescue plans were carried out at the facilities in connection with major accident
prevention and mitigation of their consequences. Our actions are chiefly geared towards
ensuring that during the planning, construction, operation, maintenance, modification or
shutdown of facilities, every possible step is taken to prevent security incidents and major
accidents and to minimise their impact. Delivering these commitments requires
ongoing coordination between organisational units and consistency between legal obligations
(legislation on the protection of the environment and water, on construction, on fire safety, on
the protection against natural and other disasters, critical infrastructure), documentation and
environmental permits issued.
Fire safety and anti-explosion protection are very important aspects of safety. They are
ensured through both statutory and preventive safety measures. These allow business
continuity and the protection of persons, the environment and property. In accordance with
protection and rescue plans, practical fire and evacuation drills were organised in October and
November 2021, the month of fire safety, in Petrol's office buildings, at service stations and at
fuel storage facilities.
In 2021, particular attention was given in Slovenia to the continued strengthening of the
Company’s safety culture by organising training for employees, as well as by introducing safety
monitoring when hazardous works are carried out.
More information about our environmental actions in 2021 will be presented in the next
Sustainability Report of the Petrol Group in June 2023.
HIGHLIGHTS
x At service stations and fuel storage facilities, we have installed systems for the closed
loading of storage tanks.
x Adequate wastewater status is ensured through the planned and systematic installation of
modern treatment plants and oil traps.
x The Petrol Group reduces light pollution by dimming the edges of canopies, totem signs
and pylons, and turning off unnecessary street lighting and lights when the point of sale is
not in operation.
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23. Quality control
Quality and excellence are embedded in the Petrol Group's strategy for the 2021 2025
period, which is why we are constantly upgrading and expanding our quality management
systems. Petrol has thus certified its quality management system (ISO 9001),
environmental management system (ISO 14001) and energy management system (ISO
50001). In addition to the certified systems, the Company's comprehensive quality
management system incorporates the requirements of the HACCP food safety
management system, of the ISO 45001 occupational health and safety system and of the
ISO 27001 information security system. Petrol has a Responsible Care Certificate for its
activities relating to storage, logistics and the retail network of service stations in Slovenia,
an FSC certificate for the sale of FSC-certified products, and an ISCC certificate for trading
and storage of renewable energy sources.
In the Petrol Group, ensuring maximum quality is a fundamental principle of our operations.
Thanks to our specialist services and support, we maintain the status of being a leading
energy company in Slovenia, which has an important impact on the development and
introduction of new technologically most advanced fuels to the Slovenian market. Petrol
Laboratory, which is accredited to the SIST EN ISO/IEC 17025:2017 standard (General
requirements for the competence of testing and calibration laboratories), has an important
role in this process. In 2021, Petrol Laboratory expanded its range of accredited methods.
At the end of the year, Petrol Laboratory had 55 accredited test methods for petroleum
product testing.
Operating as part of Petrol is also an inspection body, which is accredited to the SIST
EN ISO/IEC 17020:2012 standard (General criteria for the operation of various types of
bodies performing inspection) and has 20 accredited test methods for the inspection of
flow and tyre pressure measuring devices, of pressure equipment, of the tightness of fixed
steel reservoirs, of the wall thickness of liquid fuel reservoirs, of the measurement of the
dielectric strength of liquid fuel reservoir insulation and of the measurement of noise in the
natural and living environment. Quality management systems are also maintained at our
subsidiaries.
Company
Quality
management
system
Environmental
management
system
Energy
management
system
Laboratory accreditations
Other certificates
Petrol d.d., Ljubljana ISO 9001:2015 ISO 14001:2015 ISO 50001:2018
SIST EN ISO/IEC 17025:2017,
SIST EN ISO/IEC 17020:2012
ISCC, AEO***, RC,*
FSC**
Petrol, d. o. o. ISO 9001:2015 ISO 14001:2015 / / /
Petrol Geo, d. o. o. ISO 9001:2015 / / / /
Beogas, d. o. o. ISO 9001:2015 / / / /
Petrol, d. o. o., Beograd ISO 9001:2015 ISO 14001:2015 / /
ISO 45001:2018
*** The AEO certificate is issued by the Customs Administration of the Republic of Slovenia which also carries out control and inspects AEO certificate holders.
The certificate allows for easier admittance to customs simplifications, fewer physical and document-based controls, priority treatment in case of control, a
possibility to request a specific place for such controls and a possibility of prior notification. To obtain an AEO certificate, several conditions and criteria need to
be met: compliance with security and safety standards, appropriate records to demonstrate compliance with customs requirements, a reliable system of keeping
commercial and transport records for control purposes, and proof of financial solvency.
* Based on the Report on the implementation of the Responsible Care Global Charter commitments, Petrold.d., Ljubljana became a holder of a Responsible Care
Certificate for its activities relating to storage, logistics and retail network of service stations in Slovenia and granted the right to use the initiative's logo.
** Petrol d.d., Ljubljana is a holder of an FSC certificate for the production of wood chips used for heat generation. The FSC certificate, which is issued by an
international NGO called the Forest Stewardship Council, promotes environmentally appropriate, socially beneficial and economically viable management of
forests.
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Q Max quality guarantee of Petrol fuels
The Q Max brand has been the mainstay of Petrol's fuel quality for more than a decade. Petrol
incorporates in its fuels all the innovations and requirements dictated by legislation, engine
manufacturers and, in recent years, increasingly stringent restrictions related to the reduction
of environmental impacts.
Q Max fuels are designed according to the latest guidelines required today by the
technological development of internal combustion engines in combination with state-of-the-art
exhaust cleaning systems. With advanced solutions in the field of fuel additives, Q Max fuels
ensures that the interior of the engine parts are kept almost completely clean, which is a
prerequisite for the processes in them to take place optimally. All this is reflected in reduced
consumption, higher energy efficiency and very low emissions. With the new fuel versions (Q
Max iQ diesel), flawless engine operation is possible even under the highest engine loads and
in the most unfavourable climatic conditions (low temperatures).
The high quality of Q Max fuels is not only provided by the composition and technological
advancement but also by a complex and professionally supported quality control system at
the time of their use. Petrol fuel quality control procedures are included in all the key points of
the supply and sales chain. The control system is also integrated with international standards
of business quality and controls, which are based on accreditation prescribed and supervised
procedures (internationally recognised accreditations). All this requires qualified and
experienced staff united in the field of Sustainable Development, Quality Assurance and
Business Security. The central part of this area is our own accredited oil laboratory, with
which we can quickly and thoroughly control the quality of fuels and other products.
In 2021, in the field of Q Max fuel development, Petrol paid special attention to even better
environmental acceptability by including modern sustainably produced ingredients, which
reduce the negative effects of fuels on the environment and potential effects on global
warming.
HIGHLIGHTS:
x Thanks to our professional services and support, we maintain the status of the leading
energy company in Slovenia, which has a significant impact on the development and
introduction of the most advanced fuels to the Slovenian market.
x In 2021, Petrol Laboratory expanded its range of accredited methods.
x Petrol fuel quality control procedures are included in all the key points of the supply and
sales chain.
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24. Social responsibility
The Petrol Group pays special attention to social responsibility. In our business and social
activities, we try to actively influence and help solve environmental, social and other challenges
in the environment in which we live and operate. In 2021, we again supported a number of
humanitarian, cultural, sports and environmental projects through sponsorships and donations.
24.1 Sponsorship
The Petrol Group has been a major supporter of sport in Slovenia and in the region for a
number of years. Through sponsorship, we contribute to the development of various sports
disciplines and to the successes and development of athletes in Slovenia and Croatia. We
sponsor individuals, clubs, associations and sports events at the national and international
levels. By supporting sports and arts, we strengthen our reputation and make our brands more
visible.
Petrol has a traditional presence in winter sports, where our support for the Ski Association of
Slovenia and the Biathlon Association of Slovenia stand out. In both, we have been sponsoring
all age categories of national teams for many years, as well as one of our best snowboarders.
In the mentioned sports, we are personal sponsors of the best competitors, including Žan
Kranjec, Jakov Fak, Žan Košir and the promising young biathlete Alex Cisar. We also
traditionally support the men's alpine skiing competition, the Vitranc Cup, the Pokljuka
biathlon world cup competition, and the Rogla snowboarding world cup competition.
The Petrol Group is no less present in summer sports. As one of the biggest sponsors, we
support the Basketball Association of Slovenia, the Football Association of Slovenia, the
Volleyball Association of Slovenia, the Tennis Association of Slovenia and many larger
and smaller clubs, including the Cedevita Olimpija Basketball Club, the Jesenice Hockey
and Skating Association, Bravo Football club, "Z`Dežele" Sankaku Celje Judo club,
Domžale Helios Suns Basketball club, Branik Maribor Tennis club, Ježica Women's
basketball club, Dobovec Futsal club and other smaller sports teams.
In addition to the above-mentioned winter athletes, the Petrol Group as a personal sponsor
supports the motocross rider Simon Marčič, triathlete Denis Šketak and young promising
tennis player Maša Viriant. The presence in many sports is rounded out by the sponsorship
of the Olympic Committee of Slovenia and the Croatian Olympic Committee.
In addition to sports sponsorships, the Petrol Group takes part in technical projects linked to
various energy and environmental activities. As a sponsor, we continued to support
conferences, symposiums and events on sustainable development, energy efficiency and e-
mobility, management, marketing and public relations (SOZ Academy, PR Theater, Europe
Reader, Bled Strategic Forum, 23
rd
SKOJ, MDLG, Euromar 2021, SZE International
Conference 2021, Pantheon 2021, 10th Ljubljana Forum, Slovenian Car of the Year 2021
and others).
In the arts segment, we have been cooperating with the Ljubljana Festival and Lent Festival
for many years, and we also support cultural events taking place in Ljubljana City
Theatre, Cankarjev Dom (The Magnificent 7 season ticket) and Slovenia's other cultural
institutions. In addition, we are involved in the area of entertainment shows, concerts and
musicals, which were severely curtailed in 2021 due to the epidemic.
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In 2021, we were also active as a sponsor in other markets in the region; namely, in Croatia,
we sponsored the Croatian Olympic Committee (COC), in Bosnia and Herzegovina we
supported the “Udruženje Naš tim” ski club, and in Serbia last year we sponsored the Vrbas
Handball club.
24.2 Humanitarian projects
Part of our social footprint are corporate volunteering activities, which we have been nurturing
for the tenth year and through which we give back to society through our volunteer
work, knowledge and increasing material aid. In 2021, 70 employees from Slovenia took part
in ten work campaigns in the Corporate Volunteering Week We Give Back To Society. Petrol
contributed 140 work hours in these work campaigns, with volunteers contributing another 140
volunteer hours.
2021 marked the eleventh anniversary of the humanitarian campaign Donate Energy for Life,
through which in cooperation with the Red Cross of Slovenia and the Transfusion Institute we
raise awareness of the importance of blood donation throughout Slovenia, invite new blood
donors and inform existing donors about healthcare needs.
In 2021, we also celebrated the eleventh anniversary of the Our Energy Connects project, in
which funds earmarked for business gifts are given to charity. Each service station in Slovenia
proposes a humanitarian project for which we allocate EUR 200. Through this project, we have
supported a total of 145 different humanitarian projects implemented by non-profit
organisations. As part of this project, we have donated a total of more than EUR 680,000 to
local humanitarian projects in eleven years.
In 2021, we once again extended our helping hand to the Moste Polje Association of Friends
of Youth. In the Petrol Santa Claus campaign, employees from Slovenia raised as many as
165 New Year's presents for children from socially disadvantaged backgrounds.
In 2021, we also supported quite a few projects in the region with donations. With certainly the
largest donation, Petrol d.d., Ljubljana, and Petrol d.o.o. Zagreb has responded to help
employees affected by the earthquakes in Petrinja and Sisak. Together, they set up a special
fund, to which they allocated EUR 50,000 each, a total of EUR 100,000.
In Serbia, we also donated to support the kindergarten in Šimanovci, helping with the project
to illuminate the monument to Sava Šumanović in Šid, which will be realised in the spring of
2022. We also donated to the Slovenian Embassy in Serbia and Bosnia and Herzegovina.
HIGHLIGHTS:
x The Petrol Group has been a major supporter of sport in Slovenia and in the region for a
number of years.
x 2021 marked the eleventh anniversary of the humanitarian campaign Donate Energy for
Life, through which we raise awareness of the importance of blood donation.
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THE PETROL GROUP

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25. Companies in the Petrol Group
As at 31 December 2021, the Petrol Group diagram does not include inactive companies.
The Petrol Group as at 31 December 2021 Sales
Energy and
environmental
systems
Production of
renewable
electricity
The parent company
Petrol d.d., Ljubljana
zzz
Subsidiaries
Petrol d.o.o. (100%)
zz
Petrol javna rasvjeta d.o.o. (100%)
z
Adria-Plin d.o.o. (75%)
z
Crodux Derivati Dva d.o.o. (100%)
z
Petrol BH Oil Company d.o.o. Sarajevo (100%)
z
Petrol d.o.o. Beograd (100%)
zz
Petrol LUMENNIS PB JO d.o.o. Beograd (100%)
z
Petrol LUMENNIS VS d.o.o. Beograd (100%)
z
Petrol LUMENNIS ZA JO d.o.o. Beograd (100%)
z
Petrol LUMENNIS ŠI JO d.o.o. Beograd (100%)
z
Petrol KU 2021 d.o.o. Beograd (100%)
z
Petrol Crna Gora MNE d.o.o. (100%)
z
Petrol Trade Handelsges.m.b.H. (100%)
z
Beogas d.o.o. Beograd (100%)
zz
Petrol LPG d.o.o. Beograd (100%)
z
Tigar Petrol d.o.o. Beograd (100%)
z
Petrol LPG HIB d.o.o. (100%)
z
Petrol Power d.o.o. Sarajevo (99,7518%)
z
Petrol-Energetika DOOEL Skopje (100%)
z
Petrol Bucharest ROM S.R.L. (100%)
z
Petrol Hidroenergija d.o.o. Teslić (80%)
z
Vjetroelektrane Glunča d.o.o. (100%)
z
IG Energetski Sistemi d.o.o. (100%)
z
Petrol Geo d.o.o. (100%)
z
EKOEN d.o.o. (100%)
z
EKOEN GG d.o.o. (100%)
z
EKOEN S d.o.o. (100%)
z
Zagorski metalac d.o.o. (75%)
zz
Mbills d.o.o. (100%)
z
Atet d.o.o. (72.96%; 76% voting rights)
z
Vjetroelektrana Ljubač d.o.o. (100%)
z
E 3, d.o.o. (100%)
z
STH Energy d.o.o. Kraljevo (80%)
z
Petrol - OTI - Terminal L.L.C. (100%)
z
Geoplin d.o.o. Ljubljana (74.28%)
z
Geocom d.o.o. (100%)
z
Geoplin d.o.o., Zagreb (100%)
z
Geoplin d.o.o. Beograd (100%)
z
Zagorski metalac d.o.o. (25%)
zz
Jointly controlled entities
Geoenergo d.o.o. (50%)
z
Soenergetika d.o.o. (25%)
z
Associates
Plinhold d.o.o. (29.6985%)
z
Aquasystems d.o.o. (26%)
z
Knešca d.o.o. (47.27% of the company is owned by E 3, d.o.o.)
z

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26. The parent company
PETROL, SLOVENSKA ENERGETSKA DRUŽBA, D.D., LJUBLJANA
Management Board: Nada Drobne Popović, President of the Management Board,
Matija Bitenc, Member of the Management Board, Jože Bajuk, Member of the Management
Board, Jože Smolič, Member of the Management Board, and Zoran Gračner, Member of the
Management Board.
E-mail: petrol.pr@petrol.si
Petrol d.d., Ljubljana was formally established on 5 June 1945 as a subsidiary of the state-
owned company Jugopetrol. Before being transformed into a private joint-stock company in
1997, Petrol operated under a variety of different organisational forms. Petrol d.d., Ljubljana's
predominant activity is to sell petroleum products and other energy products (liquefied
petroleum gas, natural gas and electricity), as well as merchandise and services. In addition,
the Company is engaged in environmental and energy solutions projects.
With its 318 service stations, it has a 56 percent share of the Slovenian retail market in
petroleum products.
It generates the greater part of the Petrol Group's revenue and profits.
In 2021, the company Petrol d.d., Ljubljana generated EUR 3.55 billion in sales revenue, which
is 52 percent more than in 2020, mainly due to higher prices of oil, electricity and other energy
products.
Petrol d.d., Ljubljana's sales revenue was generated through the sale of:
x 2.6 million tons of petroleum products, down 3 percent relative to 2020;
x 33.0 thousand tons of LPG, up 5 percent relative to 2020;
x 1.4 TWh of natural gas, down 19 percent relative to 2020;
x merchandise totalling EUR 396.0 million, up 6 percent relative to 2020.
Operating costs totalled EUR 298.7 million or 10 percent more than in 2020. The costs of
materials totalled EUR 23.8 million on a par with the previous year. The costs of services stood
at EUR 114.2 million, an increase of 3 percent over the year before. The costs of work stood
at EUR 78.3 million, an increase of 5 percent over the year before. In accordance with the Act
Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its
Consequences for Citizens and the Economy, Petrol d.d., Ljubljana benefited from measures
to reimburse quarantine and force majeure compensation, crisis allowance compensation and
short sick leave compensation of 80 percent in the total amount of EUR 0.4 million (in the
amount of EUR 2.4 million in 2020) and recorded this exemption as a decrease in labour costs.
Depreciation and amortisation amounted to EUR 46.7 million, which is 1 percent less than in
2020. Other costs amounted to EUR 35.7 million.
Other operating revenue stood at EUR 274.8 million, which was EUR 164 million more than in
2020. Gain on derivatives totalled EUR 269.8 million or 171 percent more than in 2020. Other
operating expenses, the bulk of which is attributable to losses on derivatives, stood at
EUR 236.3 million, which was EUR 210 million more than in 2020.

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The operating profit amounted to EUR 100.3 million, which is 184 percent more than in 2020.
Impact of government grants on labour costs, EBITDA and pre-tax profit
Finance income from dividends paid by subsidiaries, associates and jointly controlled entities
stood at EUR 3.3 million, a decrease of EUR 0.3 million relative to 2020. Net finance expenses
stood at EUR -20.2 million and was down EUR 12.9 million compared to 2020. In 2021 Petrol
d.d., Ljubljana's net profit on derivatives was up by EUR 7.6 million and EUR 6.7 million higher
loss from net exchange rate differences relative to 2020. The value adjustment of operating
receivables totalled EUR 3.0 million. Due to impairments of investments and goodwill, financial
expenses decreased by EUR 6.6 million. Net interest expenses were EUR 1.1 million higher
than in 2020, while the elimination and recovered adjustments of receivables were EUR 0.6
million lower than in 2020. Net other financial expenses in EUR 2021 were EUR 2.4 million
higher than in 2020.
Pre-tax profit totalled EUR 83.4 million or EUR 51.7 million more than in 2020. Net profit of
Petrol d.d., Ljubljana for the year 2021 stood at EUR 66.5 million, up 37.6 million relative to
2020.
Total assets of Petrol d.d., Ljubljana as at 31 December 2021 equalled EUR 1.9 billion, which
was 28 percent more in 2020. Of this, non-current assets amounted to EUR 1.2 billion, which
is 19 percent more than on 31 December 2020. Current assets amounted to EUR 650.1 million,
which is 48 percent more than on 31 December 2020, mainly due to lower operating
receivables.
The equity of Petrol d.d., Ljubljana as at 31 December 2021 equalled EUR 609.9 million, which
was 4 percent more than at the end of 2020.
Petrol d.d., Ljubljana (EUR million)
2021 2020
2021/2020
Index
Adjusted gross profit 360,5 280,5 129
Labour costs, including government grants 78,3 74,7 105
Labour costs, excluding government grants 78,7 77,0 102
EBITDA, including government grants 147,0 82,6 178
EBITDA, excluding government grants 146,6 80,2 183
Pre-tax profit, including government grants 94,6 31,7 299
Pre-tax profit, excluding government grants 94,2 29,3 322

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27. Subsidiaries
THE PETROL ZAGREB GROUP
President of the management board: Boris Antolovič
E-mail: boris.antolovic@petrol.hr
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol d.o.o. is a 100 percent owner of Petrol javna rasvjeta d.o.o. and a 75 percent owner of
Adria-Plin d.o.o., which was acquired through the purchase of the rights and assets of Crodux
Plin d.o.o. In September 2019, the Petrol Zagreb Group acquired Crodux Plin d.o.o.’s LPG
operations while in January 2020, it acquired its electricity-trading operations. The Petrol
Zagreb Group sells oil, merchandise and services and supplies other energy products in
Croatia. In 2021, it sold 726.0 thousand tons of petroleum products and LPG, up 7 percent
from 2020. In 2021, the Petrol Zagreb Group generated a total of EUR 563.3 million in sales
revenue, which is 48 percent more than in 2020. The Group generated EUR 502.5 million of
sales revenue from the sale of petroleum products and LPG and EUR 60.8 million from the
sale of merchandise and services. Its operating profit stood at EUR 29.7 million in 2021, an
increase of EUR2.4 million from the previous year. The group's net profit for 2021 totalled
EUR22.8 million, which was EUR1.6 million more than in the previous year. The Petrol Zagreb
Group operated 109 service stations at the end of 2021.
The group's equity totalled EUR 208.3 million as at 31 December 2021.
CRODUX DERIVATI DVA D.O.O.
President of the management board: Boris Antolović
E-mail: boris.antolovic@petrol.hr
Ownership interest of Petrol d.d., Ljubljana: 100%
In October 2021, Petrol d.d., Ljubljana, after fulfilling the suspensive conditions, completed the
acquisition of a 100 percent interest in Crodux Derivati Dva d.o.o. With the acquisition of
Crodux Derivati Dva d.o.o. the Petrol Group acquired 93 service stations in Croatia. Crodux
Derivati Dva d.o.o. is engaged in the retail and wholesale of petroleum products in Croatia.
Intensive integration of processes and the parent company’s business policy has been in place
since the company’s entry to the Petrol Group. In the last three months of 2021, Crodux
Derivati Dva d.o.o. sold 161.0 thousand tons of petroleum products and LPG. In the last three
months of 2021, it generated EUR 174.5 million in sales revenue. The company generated
EUR 163.4 million in sales revenue from the sale of petroleum products and LPG and
EUR 11.1 million from the sale of merchandise and services. In the last three months of 2021,
it generated EUR -4.2 million in sales revenue. In the fourth quarter of 2021, the company
generated an EBITDA of EUR 2.4 million. Normalized EBITDA, excluding one-off costs, stands
at EUR 7.3 million and is slightly below the plan because of the effect of the petroleum product
price regulation.
On 31 December 2021, the company's equity amounted to EUR 38.5 million.

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PETROL BH OIL COMPANY D.O.O. SARAJEVO
General Manager: Gregor Žnidaršič
E-mail: gregor.znidarsic@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
The company's principal activity is selling petroleum products, merchandise and services in
Bosnia and Herzegovina. In 2021, it sold 190.2 thousand tons of petroleum products and LPG,
which was on a par with the previous year. In 2021, Petrol BH Oil Company d.o.o. Sarajevo
generated EUR 140.3 million in sales revenue, down 21 percent from 2020. In Bosnia and
Herzegovina, petroleum product prices were set freely in the market until 3 April 2021, when
gross motor fuel margins were limited due to the pandemic (the maximum retail margin was
EUR0.128 per litre and the maximum wholesale margin was EUR0.031 per litre). The margin
cap is still ongoing. The Group generated EUR129.6 million of sales revenue from the sale of
petroleum products and LPG and EUR10.7 million from the sale of merchandise and services.
Its operating profit stood at EUR 3.2 million in 2021, a decrease of EUR2.1 million from the
previous year. The company's net profit for 2021 totalled EUR 3.5 million, a decrease of
EUR1.6 million from 2020. Petrol BH Oil Company d.o.o. Sarajevo operated 42 service
stations at the end of 2021.
The company's equity totalled EUR 69.1 million as at 31 December 2021.
THE PETROL BEOGRAD GROUP
General Managers: Uroš Bider, Miljko Vlačić
E-mail: uros.bider@petrol.co.rs
Ownership interest of Petrol d.d., Ljubljana: 100%
In 2020, Petrol d.o.o., Beograd, became the sole owner of Petrol LUMENNIS PB JO d.o.o.
Beograd in Petrol LUMENNIS VS d.o.o. Beograd and in 2021, the sole owner of Petrol
LUMENNIS ZA JO d.o.o., Petrol LUMENNIS ŠI JO d.o.o. and Petrol KU 2021 d.o.o, which are
engaged in public lighting projects in Serbia. The Petrol d.o.o company's principal activity is
selling petroleum products, merchandise and services in Serbia. The volume of petroleum
products and LPG sold in 2021 totalled 107.5 thousand tons, up 24 percent from the previous
year. In 2021, the Petrol Beograd Group generated a total of EUR 73.5 million in sales revenue,
which is 23 percent less than in 2020. The Group generated EUR 68.3 million of sales revenue
from the sale of petroleum products and LPG and EUR 5.3 million from the sale of merchandise
and services. Its operating profit stood at EUR 3.6 million in 2021, an increase of EUR0.8
million from the previous year. The company's net profit for 2021 totalled EUR3.2 million, a
year-on-year increase of EUR1.0 million. Petrol d.o.o. Beograd operated 16 service stations
at the end of 2021.
The company's equity totalled EUR 32.3 million as at 31 December 2021.
PETROL CRNA GORA MNE D.O.O.
Executive Director: Tadej Zorjan (from 1 June 2021), Jaka Hrastnik (until 24 May 2021)
E-mail: tadej.zorjan@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%

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The company's principal activity is selling oil, merchandise and services in Montenegro. It was
formed when Petrol Crna Gora d.o.o. Cetinje was legally and formally merged into Petrol
Bonus d.o.o. in July 2012. The merger resulted in a new company called Petrol Crna Gora
MNE d.o.o. In 2021, it sold 53.6 thousand tons of petroleum products and LPG, up 32 percent
from 2020. In 2021, Petrol Crna Gora MNE d.o.o. generated EUR40.4 million in sales revenue,
up 68 percent from 2020. The company generated EUR34.9 million of sales revenue from the
sale of petroleum products and LPG and EUR5.4 million from the sale of merchandise and
services. Its operating profit stood at EUR 1.8 million in 2021, an increase of EUR1.3 million
from the previous year. The company's net profit for 2021 totalled EUR1.2 million, an increase
of EUR0.8 million from 2020. Petrol Crna Gora MNE d.o.o. operated 15 service stations at the
end of 2021.
The company's equity totalled EUR 21.5 million as at 31 December 2021.
THE GEOPLIN GROUP
General Manager: Vanja Lombar (since 3 January 2022), Jože Bajuk (since 26 March 2021),
Boštjan Napast (until 31 August 2021)
E-mail: vanja.lombar@geoplin.si
Ownership interest of Petrol d.d., Ljubljana: 74.28%
The company has been engaged in energy operations, i.e. supplying, trading and acting as an
agent and intermediary in the natural gas market, the company's principal activity, since mid-
1978. Its operations in the area of natural gas supply and services also extend abroad. To be
able to ensure reliable supply, it has appropriate and diversified procurement sources at its
disposal, as well as transport and storage facilities. The Geoplin Group comprises the parent
company Geoplin d.o.o. Ljubljana and its subsidiaries Geoplin d.o.o. in Zagreb, Geoplin d.o.o.
Beograd and Geocom d.o.o., which are wholly owned by the parent company, as well
as Zagorski metalac d.o.o., which is 25 percent owned by the parent company. In 2021, the
company's focus was mainly on carrying out and developing its principal activity of marketing
and trading in natural gas. To this end, the company developed trading infrastructure to support
the optimisation of its procurement and sales portfolio, as well as its expansion to new markets.
Together with efficient energy consumption and RES projects, it also continued to develop and
market energy solutions. In 2021, the Geoplin Group sold 35.5 TWh of natural gas, generating
EUR 753.2 million in sales revenue. The group's net profit for 2021 totalled EUR18.0 million.
The net profit attributable to Petrol d.d., Ljubljana amounted to EUR13.4 million.
The group's equity totalled EUR159.1million as at 31 December 2021.
BEOGAS D.O.O. BEOGRAD
General Manager: Uroš Bider
E-mail: uros.bider@petrol.co.rs
Ownership interest of Petrol d.d., Ljubljana: 100%
Beogas d.o.o. is engaged in financing, designing and constructing distribution pipelines, but it
also distributes natural gas in Belgrade municipalities: Čukarica, Palilula and Voždovac, as
well as in Pećinci since August 2015 and in Bačka Topola since June 2018. Beogas d.o.o.
Beograd is the owner of 482.1 km of the gas distribution network and 12,695 active gas
connections. In 2021, the company sold 359.5 thousand MWh of natural gas, up 11 percent

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on the previous year. In 2021, it generated EUR 12.8 million in sales revenue, up 10 percent
on the previous year. The company's operating profit stood at EUR 2.4 million in 2021, an
increase of EUR 0.6 million from the previous year. The company's net profit for 2021 totalled
EUR 2.0 million, an increase of EUR0.4 million from 2020.
The company's equity totalled EUR 21.4 million as at 31 December 2021.
THE PETROL LPG GROUP
General Managers: Miljko Vlačić, Uroš Bider
E-mail: miljko.vlacic@petrol.co.rs
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol LPG d.o.o. was established in February 2013 and is the sole owner of Tigar Petrol d.o.o.
The companies sell liquefied petroleum gas in Serbia. In July 2016, Petrol LPG HIB d.o.o. was
established, which is also fully owned by Petrol LPG d.o.o. The company sells liquefied
petroleum gas in Bosnia and Herzegovina.
In 2021, the Petrol LPG Group sold 69.7 thousand tons of liquefied petroleum gas, down 11
percent on the previous year. In 2021, it generated EUR 42.4 million in sales revenue, a year-
on-year decrease of 9 percent. The company's net profit for 2021 totalled EUR 0.2 million, a
decrease of EUR1.6 million from 2020. The group's net profit for 2021 totalled EUR0.1 million,
which was EUR1.5 million less than in the previous year.
The group's equity totalled EUR 10.3 million as at 31 December 2021.
PETROL GEO D.O.O.
General Manager: Štefan Hozjan (from 8 July 2021), Matej Prkič (until 31 May 2021)
E-mail: stefan.hozjan@petrol.eu
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol Geo d.o.o. was established in July 2018. In October 2018, mining services consisting of
the drilling and maintenance of gas and oil boreholes, including the extraction of natural gas
and oil, were transferred from Petrol Geoterm d.o.o. to Petrol Geo d.o.o. In December 2018,
Petrol Geoterm d.o.o. was merged into Petrol d.d., Ljubljana (the production of heat from
geothermal boreholes; management and development of district heating systems based on
geothermal boreholes).
Petrol Geo d.o.o. generated EUR 3.4 million in sales revenue in 2021, up 2.1 percent on the
previous year. The company's operating profit stood at EUR 2.2 million in 2021, an increase
of EUR 2.4 million from the previous year. The company's net profit for 2021 totalled EUR1.3
million, a year-on-year increase of EUR1.9 million.
The company's equity totalled EUR 2.2 million as at 31 December 2021.
IG ENERGETSKI SISTEMI D.O.O.
Manager: Barbara Jama Živalič
E-mail: barbara.jama-zivalic@petrol.si

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Ownership interest of Petrol d.d., Ljubljana: 100%
The single most important investment of IG energetski sistemi d.o.o. (IGES) was a 25 percent
interest in GEN-EL d.o.o. In accordance with the Petrol d.d., Ljubljana strategy, a contract was
signed on 22 June 2016 to dispose of the 50 percent interest held by the subsidiary IGES
d.o.o. in the company GEN-I, d.o.o. The interest was then acquired by the company GEN-EL
d.o.o. for EUR45.1 million. The transaction was carried out in two parts: the first part was
completed in 2016 and the second part in May 2018.
PETROL TRADE HANDELSGESELLSCHAFT M.B.H.
General Manager: Marko Malgaj
E-mail: marko.malgaj@petrol-trade.at
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol-Trade Handelsges m.b.H. sells petroleum products in Austria and in the neighbouring
countries.
In 2021, the company purchased and sold 102.4 thousand tons of petroleum products and
LPG. In 2021, it generated EUR 59.0 million in sales revenue, up 34 percent from 2020. Its net
profit for 2021 totalled EUR438.8 thousand
The company's equity totalled EUR 2.0 million as at 31 December 2021.
VJETROELEKTRANE GLUNČA D.O.O.
General Managers: Borut Bizjak (since 22 February 2021), Boris Antolovič
E-mail: borut.bizjak@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
In February 2016, Petrol d.d., Ljubljana became the sole owner of the Šibenik-based
company Vjetroelektrane Glunča d.o.o. The company is engaged in electricity production. The
company owns a 20.7 MW wind farm in the Šibenik area. In 2021, it generated EUR5.2 million
in sales revenue, its net profit totalling EUR1.3 million.
The company's equity totalled EUR 11.8 million as at 31 December 2021.
PETROL HIDROENERGIJA D.O.O., TESLIĆ
General Manager: Gregor Žnidaršič
E-mail: gregor.znidarsic@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 80%
In September 2015, the companies Petrol d.d., Ljubljana and Eling Inžinjering d.o.o. Teslić
established the company Petrol Hidroenergija d.o.o. The company is engaged in electricity
production. In 2021, the company generated EUR 979.7 thousand in sales revenue. Its net
profit for 2021 totalled EUR562.8 thousand. The net profit attributable to Petrol d.d., Ljubljana
amounted to EUR 450.3 thousand.
The company's equity totalled EUR 7.2 million as at 31 December 2021.

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PETROL POWER D.O.O.
General Manager: Aleš Weiss
E-mail: ales.weiss@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 99.7518%
Intrade energija d.o.o. Sarajevo became a subsidiary of Petrol d.d., Ljubljana when the
company IG Investicijski inženiring, d.o.o. was merged into Petrol d.d., Ljubljana. It was
renamed Petrol Power d.o.o. in January 2020. The company produces and distributes
electricity. In 2021, the group generated EUR750.8 thousand in sales revenue. Its net loss for
2021 totalled EUR-202.3 thousand. The net loss attributable to Petrol d.d., Ljubljana
amounted to EUR -201.8 thousand.
The company's equity totalled EUR -1.9 million as at 31 December 2021.
MBILLS D.O.O.
General Manager: Primož Zupan
E-mail: primoz.zupan@mbills.si
Ownership interest of Petrol d.d., Ljubljana: 100%
In February 2018, Petrol d.d., Ljubljana became a 76 percent owner of Mbills d.o.o. The
company operates under the Petrol mBills brand, which stands for paperless and cashless
payments. The app is an open mobile payment platform based on the mobile wallet. It can be
used for paying bills at the cash desk, monthly bills, online shopping, money transfers and
much more. In April 2020, Petrol d.d., Ljubljana increased its ownership interest in Mbills d.o.o.
from 91.04 percent to 100 percent. In 2021, the group generated EUR2.3 million in sales
revenue. Its net loss for 2021 totalled EUR-1.1 million.
The company's equity totalled EUR 4.5 million as at 31 December 2021.
THE EKOEN GROUP
General Manager: Igor Jogan
E-mail: igor.jogan@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
In November 2018, Petrol d.d., Ljubljana acquired a 100 percent interest in Ekoen d.o.o.,
which is the sole owner of Ekoen GG d.o.o. The company's principal activity is to produce and
distribute heat from renewable sources. In 2021, the group generated EUR517.0 thousand in
sales revenue. Its net loss for 2021 stood at EUR-9.4 thousand.
The group's equity totalled EUR 738.8 thousand as at 31 December 2021.
EKOEN S D.O.O.
General Manager: Igor Jogan
E-mail: igor.jogan@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%

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In December 2018, Petrol d.d., Ljubljana acquired a 100 percent interest in Ekoen S d.o.o. The
company's principal activity is to produce and distribute heat from renewable sources. In 2021,
the group generated EUR50.7 thousand in sales revenue. Its net profit for 2021 totalled
EUR7.0 thousand.
The company's equity totalled EUR15.3 thousand as at 31 December 2021.
ZAGORSKI METALAC D.O.O.
General Manager: Vladimir Sabo
E-mail: vladimir.sabo@petrol.hr
Ownership interest of Petrol d.d., Ljubljana: 75% Geoplin d.o.o. Ljubljana: 25%
The company is engaged in natural gas distribution and supply, as well as in distribution
pipeline maintenance, design and construction. Zagorski metalac d.o.o. distributes natural
gas in Zagreb County and in Krapina-Zagorje County. The company has a broad gas
distribution network, through which it supplies gas to over 17,800 end-customers. In 2021, it
sold 206.9 thousand kWh of natural gas and distributed 281.1 thousand kWh of natural gas.
In 2021, the group generated EUR8.0 million in sales revenue. Its net profit for 2021 totalled
EUR382.0 thousand.
The company's equity totalled EUR 9.1 million as at 31 December 2021.
E 3, D.O.O.
General Manager: Darko Pahor
E-mail: darko.pahor@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
In January 2021, Petrol d.d., Ljubljana, after fulfilling the suspensive conditions, completed the
acquisition of a 100 percent interest in the company E 3, d.o.o, which is a key supplier of
electricity in the Primorska region. The main activities of the company are the supply of
electricity, the production of electricity from renewable sources and cogeneration, activities
related to efficient energy use and the supply of steam and hot water. In 2021, E 3, d.o.o. sold
1,694 GWh of electricity and 11.0 GWh of heat. In 2021, the group generated EUR125.1
million in sales revenue. Its net profit for 2021 totalled EUR579.3 thousand.
The company's equity totalled EUR 15.8 million as at 31 December 2021.
PETROL-ENERGETIKA DOOEL SKOPJE
General Manager: Aleš Zupančič
E-mail: ales.zupancic1@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
In October 2010, Petrol d.d., Ljubljana established Petrol-Energetika DOOEL Skopje. The
company has a valid electricity trading licence. The company has a valid license to operate in
the electricity trade. In 2021, the company generated EUR355.6 thousand in sales revenue.
Its net profit for 2021 totalled EUR1.7 thousand.
The company's equity totalled EUR111.1 thousand as at 31 December 2020.

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PETROL BUCHAREST ROM S.R.L.
General Manager: Aleš Zupančič
E-mail: ales.zupancic1@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
In December 2014, Petrol d.d., Ljubljana established the company Petrol Bucharest ROM
S.R.L., which is engaged in electricity trading, production, transport and distribution. In 2021,
the company generated EUR64.5 thousand in sales revenue. Its net profit for 2021 totalled
EUR3.3 thousand.
The company's equity totalled EUR-84.8 thousand as at 31 December 2021.
VJETROELEKTRANA LJUBAČ D.O.O.
General Managers: Borut Bizjak (since 22 February 2021), Boris Antolovič, Slaven Tudić
E-mail: borut.bizjak@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
In January 2018, Petrol d.d., Ljubljana acquired a 50 percent interest in the Šibenik-based
company Vjetroelektrana Ljubač d.o.o. In 2019, Petrol d.d., Ljubljana acquired a 100 percent
interest in this company. The company is engaged in electricity production. In 2021, it
generated sales revenues in the amount of EUR 1.7 million and net profit in the amount of
EUR 0.5 million.
The company's equity totalled EUR 7.9 million as at 31 December 2021.
ATET D.O.O.
General Managers: Matevž Kustec, Tadej Smogavec
E-mail: matevz.kustec@atet.si
Ownership interest of Petrol d.d., Ljubljana: 72.96% (76% of voting rights)
In December 2019, Petrol d.d., Ljubljana, became the owner of a 72.96 percent interest in the
company Atet d.o.o. The company's principal activity is the rental and leasing of cars and light
motor vehicles (the short-term rental of vehicles, transport activities with a driver, and ancillary
mobility services). In 2021, the group generated EUR2.2 million in sales revenue. Its net profit
for 2021 totalled EUR288.8 thousand. The net profit attributable to Petrol d.d., Ljubljana
amounted to EUR 210.7 thousand.
The company's equity totalled EUR 2.2 million as at 31 December 2021.
STH ENERGY D.O.O. KRALJEVO
General Manager: Aleš Weiss
E-mail: ales.weiss@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 80%
In December 2019, Petrol d.d., Ljubljana acquired an 80 percent interest in the company STH
Energy d.o.o. Kraljevo. The company's principal activity is to produce electricity. The company
started trial operation in December 2021, and regular operation is scheduled for February
2022.
The company's equity totalled EUR515.5 thousand as at 31 December 2021.

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PETROL-OTI-TERMINAL L.L.C.
General Manager: Anton Figek
E-mail: anton.figek@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
In December 2020, Petrol d.d., Ljubljana completed a transaction selling its share in the
company Petrol OTI Slovenija L.L.C. to another company member, thus leaving the ownership
structure of the company. Petrol d.d., Ljubljana, bought a 100 percent interest in Petrol-OTI-
Terminal L.L.C. from Petrol Oti Slovenija L.L.C.
The company's equity totalled EUR 8.6 million as at 31 December 2021.

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28. Jointly Controlled Entities
GEOENERGO D.O.O.
General Managers: Andrej Bergant (from 5 August 2021), Verena Zidar (from 2 April 2021),
Borut Bizjak (until 28 February 2021)
E-mail: andrej.bergant@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 50%
The company holds concession rights for the extraction of mineral resources, crude oil,
natural gas and gas condensate in the area of the Mura depression. Its net profit for 2021
totalled EUR626.7 thousand. The net profit for 2021, which belongs to the Petrol Group,
totalled EUR 313.3 thousand.
The company's equity totalled EUR923.5 thousand as at 31 December 2021.
SOENERGETIKA D.O.O.
General Manager: Aleš Ažman
E-mail: ales.azman@elektro-gorenjska.si
Ownership interest of Petrol d.d., Ljubljana: 25%
The company’s principal activity is the production of electricity in thermal power plants and
nuclear power plants. Its net profit for 2021 totalled EUR457.9 thousand. The net profit for
2021, which belongs to the Petrol Group, totalled EUR 114.5 thousand.
The company's equity totalled EUR 1.6 million as at 31 December 2021.
29. Associates
AQUASYSTEMS D.O.O.
Ownership interest of Petrol d.d., Ljubljana: 26%
Activities: Construction and operation of industrial and municipal water treatment plants
the central waste treatment plant in Maribor
PLINHOLD D.O.O.
Ownership interest of Petrol d.d., Ljubljana: 29.6985%
Activities: Management of gas infrastructure
KNEŠCA D.O.O.
Ownership interest of E 3, d.o.o.: 47.27%
Activities: Production of electricity

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FINANCIAL REPORT

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 174

Contents

Statement of management’s responsibility ......................................................................... 176
Independent auditor’s report ............................................................................................... 177
Financial statements of the Petrol Group and Petrol d.d., Ljubljana .................................... 184
Notes to the financial statements ........................................................................................ 190
1. Reporting entity ..................................................................................................... 190
2. Basis of preparation ............................................................................................... 190
3. Significant accounting policies of the Group .......................................................... 195
4. Significant accounting policies of the Company ..................................................... 215
5. Segment reporting ................................................................................................. 236
6. Notes to individual items in the financial statements .............................................. 238
6.1 Business combinations ................................................................................... 238
6.2 Changes within the Group ............................................................................... 242
6.3 Revenue ......................................................................................................... 243
6.4 Costs of materials ........................................................................................... 244
6.5 Costs of services ............................................................................................. 244
6.6 Labour costs ................................................................................................... 245
6.7 Depreciation and amortisation ......................................................................... 246
6.8 Other costs...................................................................................................... 247
6.9 Other expenses ............................................................................................... 247
6.10 Interests and dividends ................................................................................... 248
6.11 Other finance income and expenses ............................................................... 249
6.12 Corporate income tax ...................................................................................... 249
6.13 Earnings per share .......................................................................................... 251
6.14 Changes in other comprehensive income ....................................................... 252
6.15 Intangible assets ............................................................................................. 252
6.16 Right-of-use assets ......................................................................................... 257
6.17 Property, plant and equipment ........................................................................ 259
6.18 Investment property ........................................................................................ 263
6.19 Investments in subsidiaries ............................................................................. 264
6.20 Investments in jointly controlled entities .......................................................... 270
6.21 Investments in associates ............................................................................... 272
6.22 Financial assets at fair value through other comprehensive income ................ 274
6.23 Non-current financial receivables .................................................................... 274
6.24 Non-current operating receivables .................................................................. 276
6.25 Inventories ...................................................................................................... 276
6.26 Current financial receivables ........................................................................... 277
6.27 Current operating receivables ......................................................................... 278
6.28 Contract assets ............................................................................................... 278
6.29 Financial assets at fair value through profit or loss .......................................... 279
6.30 Prepayments and other assets ........................................................................ 279
6.31 Cash and cash equivalents ............................................................................. 279

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6.32 Equity .............................................................................................................. 279
6.33 Provisions for employee post-employment and other long-term benefits ......... 282
6.34 Other provisions .............................................................................................. 284
6.35 Long-term deferred revenue ............................................................................ 287
6.36 Financial liabilities ........................................................................................... 288
6.37 Lease liabilities ................................................................................................ 290
6.38 Non-current operating liabilities ....................................................................... 290
6.39 Current operating liabilities .............................................................................. 291
6.40 Contract liabilities ............................................................................................ 291
6.41 Other liabilities ................................................................................................ 291
7. Financial instruments and risk management .......................................................... 292
7.1 Credit risk ........................................................................................................ 292
7.2 Liquidity risk .................................................................................................... 295
7.3 Foreign exchange risk ..................................................................................... 298
7.4 Price and volumetric risk ................................................................................. 301
7.5 Interest rate risk .............................................................................................. 301
7.6 Capital adequacy management ....................................................................... 304
7.7 Carrying amount and fair value of financial instruments .................................. 305
8. Related party transactions ..................................................................................... 307
9. Contingent liabilities ............................................................................................... 311
10.
Events after the reporting date ............................................................................... 312
11. Financial statements of Petrol d.d., Ljubljana by activity in accordance with the
Services of General Economic Interest Act and the Energy Act ...................................... 313

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 176

STATEMENT OF MANAGEMENT’S RESPONSIBILITY

The Company's management is responsible for the preparation of the financial statements,
together with accounting policies and notes, of the Petrol Group and the company Petrol d.d.,
Ljubljana for the year 2021, which give, to the best of its knowledge and belief, a fair view of
the development and results of the Company’s operations and its financial position, including
the description of material risks that the Company and any other companies included in the
consolidated financial statements are exposed to as a whole.

The management confirms that appropriate accounting policies have been applied consistently
in the preparation of the financial statements, that accounting estimates were prepared based
on the principles of fair value, prudence and sound management and that the financial
statements give a true and fair view of the Group's and the Company's financial position and
the results of their operations in the year 2021.

The management is also responsible for appropriate accounting and for taking adequate
measures to protect the Company's property and other assets, and confirms that the financial
statements, together with the notes thereto, have been prepared on the going concern
assumption and in accordance with applicable legislation and International Financial Reporting
Standards as adopted by the European Union.

The Company's management accepts and approves the financial statements, together with
accounting policies and notes, of the Petrol Group and the company Petrol d.d., Ljubljana for
the year 2021.

The tax authorities may inspect the Company's operations at any time within the period of five
years following the year in which the tax was due. This may result in additional tax liabilities,
interest on late payment and penalties arising from the corporate income tax and other taxes
and duties. The Company's management is not aware of any circumstances, which may give
rise to any material liabilities in this regard.




Nada Drobne Popović Matija Bitenc
President of the Management Board Member of the Management Board




Jože Bajuk Jože Smolič
Member of the Management Board Member of the Management Board




Zoran Gračner
Member of the Management Board, Worker Director


Petrol d.d., Ljubljana, Dunajska cesta 50, 1527 Ljubljana, Slovenia
Ljubljana, 10 March 2022

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 177



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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 178



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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 179



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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 180



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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 181



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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 182



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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 183



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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 184
Financial statements of the Petrol Group and Petrol d.d., Ljubljana
Statement of profit or loss of the Petrol Group and Petrol d.d., Ljubljana
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction
with them.
(in EUR)
Note
2021
2020
2021
2020
Sales revenue
6.3
4,960,125,965
3,079,432,607
3,557,019,790
2,338,624,128
Cost of goods sold
(4,416,701,515)
(2,652,558,643)
(3,196,529,739)
(2,058,105,400)
Costs of materials
6.4
(29,296,024)
(27,934,256)
(23,818,764)
(23,786,116)
Costs of services
6.5
(147,697,919)
(133,344,297)
(114,204,989)
(110,403,782)
Labour costs
6.6
(114,341,509)
(102,856,574)
(78,318,991)
(74,674,139)
Depreciation and amortisation
6.7
(79,091,758)
(74,994,167)
(46,696,671)
(47,201,227)
Other costs
6.8
(54,698,358)
(26,938,726)
(35,663,349)
(16,692,191)
Operating costs
(425,125,568)
(366,068,020)
(298,702,764)
(272,757,455)
Other income
6.3
277,348,633
105,786,186
274,789,421
103,907,580
Other expenses
6.9
(236,604,627)
(74,961,521)
(236,292,875)
(76,308,909)
Operating profit or loss
159,042,888
91,630,609
100,283,833
35,359,944
Share of profit or loss of equity accounted investees
6.10 2,583,7713,508,790--
Finance income from dividends paid by subsidiaries,
associates and jointly controlled entities
6.10 --3,287,0543,600,678
Other finance income
6.11
32,172,838
26,906,375
23,508,629
22,700,432
Other finance expenses
6.11
(42,351,470)
(36,580,690)
(43,682,173)
(29,991,565)
Net finance expense
(10,178,632)
(9,674,315)
(20,173,544)
(7,291,133)
Profit before tax
151,448,027
85,465,084
83,397,343
31,669,489
Tax expense
6.12
(30,683,697)
(14,373,778)
(18,781,868)
(2,843,435)
Deferred tax
6.12
3,717,031
1,238,736
1,867,467
67,462
Corporate income tax
(26,966,666)
(13,135,042)
(16,914,401)
(2,775,973)
Net profit for the year
124,481,361
72,330,042
66,482,942
28,893,516
Net profit for the year attributable to:
Owners of the controlling company
119,079,575
68,951,312
66,482,942
28,893,516
Non-controlling interest
5,401,786
3,378,730
-
-
Basic and diluted earnings per share
6.13
60.56
35.19
32.25
14.02
The Petrol Group
Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 185
Other comprehensive income of the Petrol Group and Petrol d.d., Ljubljana
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction
with them.
(in EUR)
Note
2021
2020
2021
2020
Net profit for the year
124,481,361
72,330,042
66,482,942
28,893,516
Effective portion of changes in the fair value of cash flow
variability hedging
6.14 4,109,730 (128,073) 3,283,988 124,723
Change in deferred taxes
(772,591)
21,805
(623,957)
(23,698)
Change in the fair value of financial assets through other
comprehensive income
(61,866) - - -
Change in deferred taxes
11,756
-
-
-
Foreign exchange differences
496,086
(3,102,776)
-
-
Other comprehensive income to be recognised in the
statement of profit or loss in the future
3,783,115 (3,209,044) 2,660,031 101,025
Attribution of changes in the equity of subsidiaries
-
-
-
-
Change in deferred taxes
-
-
-
-
Attribution of changes in the equity of associates
-
-
-
-
Change in deferred taxes
-
-
-
-
Total other comprehensive income to be recognised in
the statement of profit or loss in the future
3,783,115 (3,209,044) 2,660,031 101,025
Unrealised actuarial gains and losses
(5,406)
141,101
12,995
306,530
Other comprehensive income not to be recognised in
the statement of profit or loss in the future
(5,406) 141,101 12,995 306,530
Attribution of changes in the equity of subsidiaries
-
-
-
-
Attribution of changes in the equity of associates
-
-
-
-
Total other comprehensive income not to be
recognised in the statement of profit or loss in the
future
(5,406) 141,101 12,995 306,530
Total other comprehensive income after tax
3,777,709
(3,067,943)
2,673,026
407,555
Total comprehensive income for the year
128,259,070 69,262,099 69,155,968 29,301,071
Total comprehensive income attributable to:
Owners of the controlling company
122,872,937
65,854,194
69,155,968
29,301,071
Non-controlling interest
5,386,133
3,407,905
-
-
The Petrol Group
Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 186
Statement of financial position of the Petrol Group and Petrol d.d., Ljubljana
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction
with them.
(in EUR)
Note
31 December
2021
31 December
2020
Adjusted
31 December
2021
31 December
2020
ASSETS
Non-current (long-term) assets
Intangible assets
6.15
345,329,895
194,646,631
155,524,818
161,533,797
Right-of-use assets
6.16
102,621,512
62,401,606
27,874,823
30,716,648
Property, plant and equipment
6.17
767,704,711
710,207,621
366,262,157
379,425,104
Investment property
6.18
16,139,743
17,522,012
12,335,994
13,551,882
Investments in subsidiaries
6.19
-
-
553,970,331
351,013,627
Investments in jointly controlled entities
6.20
704,501
562,016
210,000
233,000
Investments in associates
6.21
55,169,626
55,953,391
26,610,477
29,185,477
Financial assets at fair value through other comprehensive
income
6.22 4,133,044 4,528,987 2,117,914 2,117,914
Financial receivables
6.23
991,831
2,680,471
83,299,185
58,124,422
Operating receivables
6.24
8,228,771
10,565,315
8,219,107
10,542,414
Deferred tax assets
6.12
11,379,674
9,906,032
8,155,514
6,912,005
1,312,403,308
1,068,974,082
1,244,580,320
1,043,356,290
Current assets
Inventories
6.25
178,191,288
140,154,195
96,573,239
87,530,630
Contract assets
6.28
3,338,893
1,949,652
7,604,649
3,276,761
Financial receivables
6.26
16,168,692
32,634,090
16,181,049
22,247,726
Operating receivables
6.27
650,343,180
366,441,439
385,829,891
237,718,876
Corporate income tax assets
6.12
616,729
3,426,549
-
6,317,590
Financial assets at fair value through profit or loss 6.29 34,666,891 11,107,888 34,561,544 11,053,141
Financial assets at fair value through other comprehensive
income
6.22 1,776,801 209,094 1,100,446 209,094
Prepayments and other assets
6.30
85,718,759
78,506,510
50,728,784
27,371,876
Cash and cash equivalents
6.31
100,226,890
88,674,952
57,567,397
44,670,525
1,071,048,123
723,104,369
650,146,999
440,396,219
Total assets
2,383,451,431
1,792,078,451
1,894,727,319
1,483,752,509
EQUITY AND LIABILITIES
Equity attributable to owners of the controlling company
Called-up capital
52,240,977
52,240,977
52,240,977
52,240,977
Capital surplus
80,991,385
80,991,385
80,991,385
80,991,385
Legal reserves
61,987,955
61,987,955
61,749,884
61,749,884
Reserves for own shares
4,708,359
4,708,359
4,708,359
4,708,359
Own shares
(4,708,359)
(4,708,359)
(2,604,670)
(2,604,670)
Other revenue reserves
318,523,082
316,057,569
340,914,615
338,449,102
Fair value reserve
(789,611)
(753,447)
39,809,449
39,796,454
Hedging reserve
(858,584)
(4,195,723)
(1,136,850)
(3,796,881)
Foreign exchange differences
(8,634,420)
(9,126,807)
-
-
Retained earnings
362,184,854
290,793,508
33,241,471
14,446,758
865,645,638
787,995,417
609,914,620
585,981,368
Non-controlling interest
43,052,367
38,674,020
-
-
Total equity
6.32
908,698,005
826,669,437
609,914,620
585,981,368
Non-current liabilities
Provisions for employee post-employment and other long-term
benefits
6.33 9,516,091 9,438,977 7,969,809 8,293,721
Other provisions
6.34
34,323,479
31,347,421
17,606,490
14,763,837
Long-term deferred revenue
6.35
34,447,444
33,412,476
29,459,071
28,419,773
Financial liabilities
6.36
433,812,995
303,431,060
404,555,761
282,866,603
Lease liabilities
6.37
92,991,633
54,397,111
26,735,533
27,608,922
Operating liabilities
6.38
5,661,782
727,182
5,661,782
727,182
Deferred tax liabilities
6.12
1,583,658
3,985,700
-
-
612,337,082
436,739,927
491,988,446
362,680,038
Current liabilities
Financial liabilities
6.36
65,958,447
48,766,555
272,485,762
160,688,732
Lease liabilities
6.37
13,768,130
10,069,352
2,717,596
4,259,323
Operating liabilities
6.39
690,456,613
437,216,148
442,507,932
348,832,832
Corporate income tax liabilities
6.12
18,786,511
1,966,916
16,353,199
-
Contract liabilities
6.40
14,828,344
14,927,846
7,905,838
8,830,761
Other liabilities
6.41
58,618,299
15,722,270
50,853,926
12,479,455
862,416,344
528,669,087
792,824,253
535,091,103
Total liabilities
1,474,753,426
965,409,014
1,284,812,699
897,771,141
Total equity and liabilities
2,383,451,431
1,792,078,451
1,894,727,319
1,483,752,509
The Petrol Group
Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 187
Statement of changes in equity of the Petrol Group
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
Legal reserv es
Reserves for
own sh ar es Own shares
Other revenue
reserves
As at 1 January 2020
52,240,977
80,991,385
61,987,955
4,708,359
(4,708,359)
314,675,779
(894,548)
(4,089,455)
(5,994,856)
271,904,940
770,822,177
40,430,080
811,252,257
Dividend payments for 2019
(15,098,102)
(30,124,614)
(45,222,716)
(45,222,716)
Transfer of a portion of 2019 and 2020 net profit
19,938,130
(19,938,130)
-
-
Increase/(decrease) in non-controlling interest
(3,458,238)
(3,458,238)
(5,163,965)
(8,622,203)
Transactions with owners
-
-
-
-
-

1,381,790
-
-
-
(50,062,744)
(48,680,954)
(5,163,965)
(53,844,919)
Net profit for the current year
68,951,312
68,951,312
3,378,730
72,330,042
Other changes in other comprehensive income
141,101
(106,268)
(3,131,951)
(3,097,118)
29,175
(3,067,943)
Tot al changes in tot al comprehensiv e income
-
-
-
-
-
-

141,101
(106,268)
(3,131,951)
68,951,312
65,854,194
3,407,905
69,262,099
As at 31 December 2020 52,240,977 80,991,385 61,987,955 4,708,359 (4,708,359) 316,057,569 (753,447) (4,195,723) (9,126,807) 290,793,508 787,995,417 38,674,020 826,669,437
As at 1 January 2021
52,240,977
80,991,385
61,987,955
4,708,359
(4,708,359)
316,057,569
(753,447)
(4,195,723)
(9,126,807)
290,793,508
787,995,417
38,674,020
826,669,437
Dividend payments for 2020
(30,775,958)
(14,446,758)
(45,222,716)
(45,222,716)
Transfer of a portion of 2021 net profit
33,241,471
(33,241,471)
-
-
Increase/(decrease) in non-controlling interest
-
(1,007,786)
(1,007,786)
Transactions with owners
-
-
-
-
-
2,465,513
-
-
-
(47,688,229)
(45,222,716)
(1,007,786)
(46,230,502)
Net profit for the current year
119,079,575
119,079,575
5,401,786
124,481,361
Other changes in other comprehensive income
(36,164)
3,337,139
492,387
3,793,362
(15,653)
3,777,709
Tot al changes in tot al comprehensiv e income
-
-
-
-
-
-
(36,164)
3,337,139
492,387
119,079,575
122,872,937
5,386,133
128,259,070
As at 31 December 2021 52,240,977 80,991,385 61,987,955 4,708,359 (4,708,359) 318,523,082 (789,611) (858,584) (8,634,420) 362,184,854 865,645,638 43,052,367 908,698,005
Retained
earnings
Equity
att ribut able to
owners of the
controlling
company
Non-controlling
interest Total
Fair value
reserve Hedging reserve
Foreign
exchange
differences(in EUR ) Called-up capital Capital surplus
Rev en ue reserv es

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 188
Statement of changes in equity of Petrol d.d., Ljubljana
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
Legal reserv es
Reserv es for
own sh ar es Own shares
Other revenue
reserves
As at 1 January 2020 52,240,977 80,991,385 61,749,884 4,708,359 (2,604,670) 339,100,447 39,489,924 (3,897,907) 30,124,614 601,903,014
Dividend payments for 2019
(15,098,102)
(30,124,614)
(45,222,716)
Transfer of a portion of 2020 net profit
14,446,758
(14,446,758)
-
Transactions with owners
-
-

-

-
-
(651,344)
-
-

(44,571,372)
(45,222,716)
Net profit for the current year
28,893,516
28,893,516
Other changes in other comprehensive income
306,530
101,025
407,555
Tot al changes in tot al comprehensiv e income
-

-
-
-
-
-
306,530
101,025
28,893,516
29,301,071
As at 31 December 2020 52,240,977 80,991,385 61,749,884 4,708,359 (2,604,670) 338,449,102 39,796,454 (3,796,881) 14,446,758 585,981,368
As at 1 January 2021 52,240,977 80,991,385 61,749,884 4,708,359 (2,604,670) 338,449,102 39,796,454 (3,796,881) 14,446,758 585,981,368
Dividend payments for 2020
(30,775,958)
(14,446,758)
(45,222,716)
Transfer of a portion of 2021 net profit
33,241,471
(33,241,471)
-
Transactions with owners
-
-
-
-
-
2,465,513
-
-
(47,688,229)
(45,222,716)
Net profit for the current year
66,482,942
66,482,942
Other changes in other comprehensive income
12,995
2,660,031
2,673,026
Tot al changes in tot al comprehensiv e income
-
-
-
-
-
-
12,995
2,660,031
66,482,942
69,155,968
As at 31 December 2021 52,240,977 80,991,385 61,749,884 4,708,359 (2,604,670) 340,914,615 39,809,449 (1,136,850) 33,241,471 609,914,620
Accumu lat ed profit fo r 2021 28,606,469 33,241,471 61,847,940
(in EUR ) C alled- u p capital C apital surp lus
Rev en ue reserv es
Fair value
reserve Hedging reserve
Retained
earnings Total

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 189
Statement of cash flows of the Petrol Group and Petrol d.d., Ljubljana
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction
with them.
(in EUR)
Note
2021
2020 Adjusted
2021
2020
Cash flows from operating activities
Net profit
124,481,361
72,330,042
66,482,942
28,893,516
Adjustment for:
Corporate income tax
6.12
26,966,666
13,135,042
16,914,401
2,775,973
Depreciation of property, plant and equipment, investment
property and right-of-use assets
6.7 65,861,834 63,059,359 37,020,227 38,558,286
Amortisation of intangible assets
6.7
13,229,924
11,934,808
9,676,444
8,642,941
(Gain)/loss on disposal of property, plant and equipment
6.3, 6.8
627,202
582,616
653,815
730,389
Impairment, write-down/(reversed impairment) of assets
6.8
14,259,583
16,207,510
2,705,061
4,383,807
Revenue from assets under management
6.36
(65,414)
(65,414)
(65,414)
(65,414)
Net (decrease in)/creation of provisions for long-term
employee benefits
6.33 (306,149) 823,869 (310,918) 575,192
Net (decrease in)/creation of other provisions and long-term
deferred revenue
6.34, 6.35 3,356,189 13,942,671 3,881,951 13,417,957
Net goods surpluses
6.8
(2,696,235)
520,368
(1,476,726)
206,820
Net (decrease in)/creation of allowance for receivables
6.11
7,571,039
1,703,513
2,660,018
(1,097,308)
Net finance (income)/expense
6.11
(657,814)
4,392,056
7,431,554
3,982,897
Impairment of investments and of goodwill
6.11
873,366
3,641,563
11,193,296
4,584,965
Share of profit of jointly controlled entities
6.10
(300,040)
(124,978)
-
-
Share of profit of associates
6.10
(2,283,731)
(3,383,812)
-
-
Finance income from dividends received from subsidiaries
6.10
-
-
(1,823,324)
(2,099,062)
Finance income from dividends received from jointly
controlled entities
6.10 - - (135,495) (172,935)
Finance income from dividends received from associates
6.10
-
-
(1,328,236)
(1,328,680)
Cash flow from operating activities before changes in
working capital
250,917,781 198,699,213 153,479,596 101,989,344
Net (decrease in)/creation of other liabilities
6.41
36,963,249
(466,635)
38,374,470
1,505,407
Net decrease in/(creation) of other assets
6.30
(18,616,569)
184,008
(13,287,076)
(812,780)
Change in inventories
6.25
(20,869,739)
27,191,931
(7,441,204)
40,692,344
Change in operating and other receivables and contract
assets
6.27, 6.28 (209,709,855) 101,121,650 (182,227,918) 72,559,436
Change in operating and other liabilities and contract
liabilities
6.39, 6.40 138,301,308 (110,027,363) 80,276,004 (89,066,535)
Cash generated from operating activities
176,986,175
216,702,804
69,173,872
126,867,216
Interest paid
6.11
(9,750,418)
(8,477,858)
(7,157,264)
(7,033,413)
Taxes paid
6.12
(12,585,658)
(15,866,256)
3,921,348
(6,759,102)
Net cash from (used in) ope ra ting activities
154,650,099
192,358,690
65,937,956
113,074,701
Cash flows from investing activities
Payments for investments in subsidiaries
6.19
(196,650,000)
(12,741,490)
(204,150,000)
(13,208,987)
Receipts from investments in subsidiaries
6.19
-
116,875
-
-
Receipts from investments in associates
6.21
2,575,000
753,977
2,575,000
753,977
Receipts from intangible assets
6.15
412,459
203,276
407,294
203,229
Payments for intangible assets
6.15
(7,276,610)
(10,596,165)
(4,074,759)
(8,523,416)
Receipts from property, plant and equipment
6.17
5,385,276
4,375,850
687,619
1,818,714
Payments for property, plant and equipment
6.17
(57,030,318)
(79,630,464)
(28,496,285)
(41,221,462)
Receipts from investment property
6.18
-
241,532
-
241,530
Receipts from financial assets at fair value through other
chomprehensive income
6.22 - 419,612 - 419,612
Receipts from loans granted
6.23, 6.26
91,219,887
14,044,121
159,534,710
53,759,636
Payments for loans granted
6.23, 6.26
(39,367)
(40,334,584)
(178,542,919)
(96,208,419)
Interest received
6.11
17,028,503
3,504,458
2,529,225
2,915,144
Dividends received from subsidiaries
6.10
-
-
1,823,324
2,099,062
Dividends received from jointly controlled entities
6.10
135,495
172,934
135,495
172,934
Dividends received from associates
6.10
1,403,355
1,328,681
1,328,236
1,328,681
Dividends received from others
6.10
177,148
139,321
67,148
29,321
Net cash from (used in) investing activities
(142,659,172)
(118,002,066)
(246,175,912)
(95,420,444)
Cash flows from financing activitie s
Payments for right-of-use assets
6.37
(12,056,039)
(8,997,712)
(3,566,349)
(3,194,615)
Proceeds from borrowings
6.36
926,931,269
835,261,103
1,327,414,213
1,090,169,633
Repayment of borrowings
6.36
(880,837,557)
(808,314,348)
(1,085,490,135)
(1,032,414,899)
Dividends paid to shareholders
6.32
(45,222,901)
(45,223,953)
(45,222,901)
(45,223,953)
Net cash from (used in) financing activities
(11,185,228)
(27,274,910)
193,134,828
9,336,166
Increase/(decrease) in cash and cash equivalents
805,699
47,081,714
12,896,872
26,990,423
Changes in cash and cash equivalents
At the beginning of the year
88,674,952
41,730,269
44,670,525
17,680,102
Foreign exchange differences
62,968
(138,742)
-
-
Cash acquired through acquisition of companies
10,683,271
1,711
-
-
Increase/(decrease)
805,699
47,081,714
12,896,872
26,990,423
At the end of the year
100,226,890
88,674,952
57,567,397
44,670,525
The Petrol Group
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 190

NOTES TO THE FINANCIAL STATEMENTS

1. Reporting entity

Petrol d.d., Ljubljana (hereinafter the “Company”) is a company domiciled in Slovenia. Its
registered office is at Dunajska cesta 50, 1527 Ljubljana. Below we present consolidated
financial statements of the Group for the year ended 31 December 2021 and separate financial
statements of the company Petrol d.d., Ljubljana for the year ended 31 December 2021. The
consolidated financial statements comprise the Company and its subsidiaries as well as the
Group’s interests in associates and jointly controlled entities (together referred to as the
“Group”). A more detailed overview of the Group’s structure is presented in chapter Companies
in the Petrol Group of the business report.


2. Basis of preparation

a. Statement of compliance

The Company’s management approved the Company’s financial statements and the Group’s
consolidated financial statements on 10 March 2022.

The financial statements of Petrol d.d., Ljubljana and consolidated financial statements of the
Petrol Group have been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union, the interpretations of the IFRS
Interpretations Committee, also adopted by the EU, and the Companies Act.

b. Basis of measurement

The Group’s and the Company’s financial statements have been prepared on the historical
cost basis except for the financial instruments that are carried at fair value or amortised cost.

c. Functional and presentation currency

These financial statements are presented in euros (EUR) without cents, the euro also being
the Company’s functional currency. Due to rounding, some immaterial differences may arise
as concerns the sums presented in the tables. The financial statements provide comparative
information in respect of the previous period.

d. Use of estimates and judgements

The preparation of the financial statements requires management to make estimates and
judgements based on the assumptions used and reviewed that affect the reported amounts of
assets, liabilities, revenue and expenses. How the estimates are produced and the related
assumptions and uncertainties is disclosed in the notes to individual items.

The estimates, judgements and assumptions are reviewed on a regular basis. Because
estimates are subject to subjective judgement and a degree of uncertainty, actual results might
differ from the estimates. Changes in accounting estimates, judgements and assumptions are
recognised in the period in which the estimates are changed if the change affects that period
only. If the change affects future periods, they are recognised in the period of the change and
in any future periods.




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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 191
Estimates and assumptions are mainly used in the following judgements:
Leases
The Group/Company applied the following accounting judgements that significantly affect
the determination of the amount of right-of-use assets and lease liabilities:
Identifying a lease
A contract is identified as a lease if it gives the Group/ Company the right to control a
leased asset. The Group/ Company controls the asset if it can use the asset and has
the right to obtain economic benefits from the use of the asset.
Determining the lease term
The Group/Company determines the lease term as the non-cancellable period of a
lease, together with both:
a) the period covered by an option to extend the lease, if it is reasonably certain that
this option is going to be exercised;
b) the period covered by an option to terminate the lease, if it is reasonably certain that
this option is not going to be exercised.
In most cases, the lease term is stipulated in the contract. When the term is not
specified, the Group/Company estimates the lease term by considering the
assessment of the need to use the asset, taking into account its plans and the long-
term business direction.
Determining the discount rate
The discount rate equals the interest rate at which the Group/Company is able to obtain
comparable funds with comparable maturity in the market.
Revenue from contracts with customers
The Group/Company applied the following accounting judgements that significantly affect
the determination of the amount and recognition of revenue from contracts with customers:
Treatment of excise duty when selling petroleum products
The Group/Company accounts for excise duty when purchasing petroleum products,
charging it to the end customer when a sale is made. In the financial statements, excise
duty is not carried as part of revenue or cost, in conformity with these accounting
policies. The Group/Company used to carry excise duty as part of revenue. Following
a reassessment exercise in 2019, the duty is no longer considered as part of revenue.
Determining the timing of satisfaction of performance obligations
Revenue from the sale of goods and services is recognised by the Group/Company in
full upon sale, except for instalment sales. As of the sale, the Group/Company no longer
has control of the goods or services sold.
In instalment sales, the Group/Company recognises separately revenue from the sale
of goods and finance income deferred over the entire financing period.
Sale in the name and for the account of third parties
The Group/Company has concluded contracts on the sale of merchandise in the name
and on behalf of suppliers. It provides customers goods delivery in the scope of these
contracts. The Group/Company determined that it does not control the goods before
they are transferred to customers, and it does not have the ability to direct their use or
obtain any benefits. In addition, the Group/Company is not exposed to inventory risk
before or after the goods have been transferred to the customer as it purchases
equipment only upon approval of the customer and can return the unsold goods to the
supplier.
The Group/Company has no discretion in establishing the price for the specified goods
that it sells in the name and on behalf of third parties. The consideration it receives as
an intermediary is agreed in advance as the difference between the final selling price
and the cost, where both are negotiated with the supplier in advance.
Determining whether the loyalty points provide additional benefits to customers

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 192
The Group/Company operates a loyalty points programme, which includes all
customers who are holders of the Petrol Club card. The Group/Company offers Petrol
Club card holders certain discounts on their purchases at service stations or on the
supply of gas and electricity, based on the points collected from their previous
purchases. The Group/Company established that the points represent additional
benefits for the customer which would not have existed if the customer had not had the
Petrol Club card. As some of the discounts can be used in the following year, the
Group/Company defers them to match its revenue with the expenses incurred to
generate the revenue.
Allocating assets or part of the assets to investment property
When the Group/Company uses property in part for the performance of own activities and
partly to be leased out, and the part intended to be leased out can be sold separately or
leased under a finance lease, then the part intended to be leased out is accounted for
separately as investment property if its value exceeds 5 percent of the property value.
Business combinations
The Group/Company applied the following accounting judgements that significantly affect
the recognition and measurement of effects of business combinations:
Defining a business combination
The Group/Company defines a business transaction as a business combination by
assessing criteria the fulfilment of which proves that assets and liabilities acquired in a
business transaction constitute a business, with the Group/Company controlling these
assets once the transaction has been completed.
Net asset value recognition date
In its financial statements, the Group/Company recognises the assets and liabilities
acquired in a business combination on the date when controlling influence is exercised
over the acquired assets/liabilities.
Since the completion of a transaction involving a business combination is subject to
fulfilment of purchase and sale terms and conditions, the Group/Company assesses their
fulfilment and its control over the business and cash flows of the acquired company as
at reporting date.
Estimating the fair value of net assets
The fair value of net asset value is measured as the difference between the fair values
of assets and liabilities determined by the Group/Company using valuation techniques
and market assumptions.
Estimating the useful lives of depreciable assets (Notes 6.15 and 6.16, 6.17 and 6.18,
Policies 3.e, and 3.f and 3.h)
When estimating the lives of assets, the Group/Company takes into account the expected
physical wear and tear, the technical and economic obsolescence as well as expected
legal restrictions and other restrictions of use. In addition, the Group/Company checks the
useful life of significant assets in case circumstances change and the useful life needs to
be changed and depreciation charges revalued.
Asset impairment testing
Information on significant uncertainty estimates and critical judgements that were prepared
by the management in the process of accounting policy implementation and which affect
the amounts in the financial statements the most was used in the estimation of the value
of:
investment property (Note 6.18),
goodwill (Note 6.15),
investments in subsidiaries (Note 6.19),
investments in jointly controlled entities and associates (Notes 6.20 and 6.21),

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 193
financial assets at fair value through other comprehensive income (Note 6.22),
financial receivables (Note 6.23),
financial assets and financial liabilities at fair value through profit or loss (Note 6.29).
Parameters/assumptions applied in assessing asset values
The Group/Company assesses the value of its assets by:
discounting future free cash flows based on future expectations and assumptions as
follows:
i. Future cash flows: reflect expected demand for goods and are based on long-term
financial plans approved by the Group’s management. Financial plans are prepared by
analysing past periods and by taking into account future development scenarios.
ii. Discount rate: reflects the weighted average cost of capital and is calculated on the
value assessment date based on a risk-free interest rate plus margins reflecting the
risk of an asset.
iii. Long-term growth rate: reflects the expected long-term growth of cash flows
subsequent to the projection period and is assessed based on a company’s past
operations and future macroeconomic developments.
using the market approach, which is based on the values of economic categories of
comparable companies as at value assessment date.
Estimation of the fair value of assets (Notes 6.22 and 6.29)
Fair value is used for financial assets measured at fair value through other comprehensive
income, financial assets measured at fair value through profit or loss and for derivatives.
All other items in the financial statements represent the cost or amortised cost.
In measuring the fair value of a non-financial asset, the Group/Company must take into
account a market participant’s ability to generate economic benefits by using the asset in
its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use. The Group/Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient data is available, especially by
applying appropriate market inputs and minimum non-market inputs.
All assets and liabilities measured and disclosed in the financial statements at fair value
are classified within the fair value hierarchy based on the lowest level of input data that is
significant to the fair value measurement as a whole:
Level 1 – quoted (unadjusted) prices in active markets for similar assets and liabilities
Level 2 – valuation techniques that are based directly or indirectly on market data
Level 3 – valuation techniques that are not based on market data.
For assets and liabilities disclosed in the financial statements in previous periods, the
Group/Company determines at the end of each reporting period whether transfers have
occurred between levels by re-assessing the classification of assets based on the lowest
level input that is significant to the fair value measurement as a whole.
The fair value hierarchy of assets and liabilities of the Group/Company is presented in Note
7.7, whereas the guidelines for individual items in the financial statements are given in
Point 3.p.
Estimation of the influence in jointly controlled entities
The Group/Company regularly checks if a change of influence has occurred in jointly
controlled entities and associates, thus ensuring that the investments are appropriately
treated in the financial statements. The existence of significant influence by an investor is
evidenced particularly in one or more of the following ways:
representation on the board of directors or equivalent governing body of the
Group/Company investee;

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 194
participation in policy-making processes, including participation in decisions about
dividends;
material transactions between the investor and the Group/Company investee.
Estimate of provisions for lawsuits (Notes 6.34 and 9)
There are several lawsuits that have been filed against Group companies, for which the
potential need for provisions is estimated on an ongoing basis. Provisions are recognised
if, as a result of a past event, companies have a present legal or constructive obligation
that can be estimated reliably, and if it is probable that an outflow of economic benefits will
be required to settle the obligation.
Contingent liabilities are not disclosed in the financial statements because their actual
existence will only be confirmed by the occurrence or non-occurrence of events in
unforeseeable future, which is beyond the control of Group companies. The management
of a company regularly checks if an outflow of economic benefits is probable to settle
contingent liabilities. If it becomes probable, the contingent liability is restated and
provisions are created for it in the financial statements as soon as the level of probability
changes. When assessing the existence and amount of contingent liabilities, the Group’s
management relies on expert opinions provided by external lawyers who represent the
Company in legal disputes and, where necessary, on opinions provided by international
legal experts. Provisions for lawsuits contain a significant degree of uncertainty, and actual
settlement can differ considerably from the current estimate.
Estimate of provisions for partial non-compliance in the area of renewables (Note 6.34)
The Group's/Company's other provisions include provisions for partial non-compliance in
the area of renewables in transport (Decree on renewable energy sources in transport).
The provisions were estimated by considering all relevant circumstances regarding
conformity with the required standards and legal aspects, and represent the management's
best estimate as to how likely is the outflow of economic benefits from the Group/Company.
Estimate of provisions for employee post-employment and other long-term benefits (Note
6.33)
Defined post-employment and other benefit obligations include the present value of post-
employment benefits on retirement and jubilee benefits. They are recognised based on an
actuarial calculation approved by the management. An actuarial calculation is based on
the assumptions and estimates applicable at the time of the calculation, and these may
differ from the actual assumptions due to future changes. This mainly refers to determining
the discount rate, the estimate of staff turnover, the mortality estimation and the salary
increase estimate. Defined benefit obligations are sensitive to changes in the said
estimates because of the complexity of the actuarial calculation and the item’s long-term
nature. The assumptions are detailed in Note 6.33.
Estimate of provisions for onerous contracts (Notes 6.34 and 6.41)
Provisions for onerous contracts include:
Provisions for long-term contracts on transport and storage. Provisions are shown
as the difference between the contractual and market value of the contract and are
recognized based on a calculation adopted by the management. The provisions are
based on the assumptions and estimations applicable at the time of the calculation,
which primarily relate to determining the discount rate and
Provisions for the supply of electricity. These are recognized based on the
calculation of the estimated economic benefits and costs of services under
electricity supply contracts. The projected electricity market prices for the coming
year are applied in the calculation.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 195

Assessing the possibility of using deferred tax assets
The Group/Company recognises deferred tax assets in connection with provisions for
jubilee benefits and postemployment benefits on retirement, impairment of financial assets,
impairment of receivables and tax losses.

On the day the financial statements are completed, the Group/Company verifies the
amount of disclosed deferred tax assets and liabilities. Deferred tax assets are recognised
if it is probable that future taxable net profits will be available against which deferred tax
assets can be utilised in the future. Deferred taxes are decreased by the amount for which
it is no longer probable that tax breaks associated with the asset can be utilised.

e. Changes in accounting policies

The Group/Company did not change its accounting policies in 2021.

f. Change of financial statement presentation due to an error in Prior Year
Statement of Financial Position and Statement of Cash Flows

In 2021, the Group changed the individual item presentation in the Statement of Financial
Position and Statement of Cash Flows in order to ensure more relevant presentation.

Upon reconsidering the gas purchase contract of the affiliated company from 2020, it was
observed that the goods were not being purchased in line with IFRS 15; therefore, it is
appropriate to present the transaction as a short-term loan. Consequently, in Statements of
Financial Position as at 31 December 2020, the Group made an adjustment and reduced the
value of inventories and increased the value of the financial receivables. The Group made an
adjustment also in Statements of Cash Flows.

Impact on the Statement of Financial Position of the Petrol Group


Impact on the Statement of Cash Flows of the Petrol Group


3. Significant accounting policies of the Group

The Group and Group companies applied the accounting policies set out below consistently to
all periods presented in these financial statements.

Except for the newly adopted standards and interpretations specified below, the accounting
policies used herein are the same as in the previous annual report.
(in EUR)
31 December
2020
Published
Change of
presentation
31 December
2020
Adjusted
ASSETS
Current assets
Inventorieses 169,933,758(29,779,563)140,154,195
Financial receivables 2,854,52729,779,56332,634,090
Total assets 1,792,078,451-1,792,078,451
The Petrol Group
(in EUR)
2020 Published
Change of
presentation 2020 Adjusted
Change in inventories (2,587,632)29,779,56327,191,931
Cash generated from operating activities 186,923,24129,779,563216,702,804
Payments for loans granted (10,555,021)(29,779,563)(40,334,584)
Net cash from (used in) investing activities (88,222,503)(29,779,563)(118,002,066)
The Petrol Group

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 196
Newly adopted standards and interpretation, for the Group and the Company, effective
as of 1 January 2021
Interest Rate Benchmark Reform – Phase 2 – IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
(Amendments)
In August 2020, the IASB published Interest Rate Benchmark Reform – Phase 2, Amendments
to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, completing its work in response to IBOR
reform. The amendments provide temporary reliefs which address the financial reporting
effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free
interest rate (RFR). In particular, the amendments provide for a practical expedient when
accounting for changes in the basis for determining the contractual cash flows of financial
assets and liabilities, to require the effective interest rate to be adjusted, equivalent to a
movement in a market rate of interest. Also, the amendments introduce reliefs from
discontinuing hedge relationships including a temporary relief from having to meet the
separately identifiable requirement when an RFR instrument is designated as a hedge of a risk
component. There are also amendments to IFRS 7 Financial Instruments: Disclosures to
enable users of financial statements to understand the effect of interest rate benchmark reform
on an entity’s financial instruments and risk management strategy. While application is
retrospective, an entity is not required to restate prior periods.
The amendments did not have a material impact on the financial statements of the
Group/Company.
a. Basis of consolidation
The Group’s consolidated financial statements comprise the financial statements of the
controlling company and of its subsidiaries.
Business combinations
Business combinations are accounted for using the acquisition method as at the date of the
combination, which is the same as the acquisition date or the date on which control is
transferred to the Group. Control is the power to govern financial and operating policies of a
company so as to obtain benefits from its activities. In the consolidated financial statements,
acquired assets and liabilities are recognised at fair value as at the acquisition date. The
excess of the consideration over the net fair value of the acquired assets is presented as
goodwill as part of intangible fixed assets.
The Group measures goodwill at the fair value of the consideration transferred plus the
recognised amount of any noncontrolling interest in the acquiree, plus the fair value of any pre-
existing equity interest in the acquiree (if the business combination is achieved in stages), less
the net recognised amount of the assets acquired and liabilities assumed, all measured as at
the acquisition date. Subsequent measurement of goodwill is specified in Point e. When the
excess is negative, the effect is recognised immediately in profit or loss as negative goodwill.
Acquisition costs, other than those associated with the issue of equity or debt securities,
incurred in connection with a business combination are expensed as incurred.
Any contingent liabilities arising from business combinations are recognised at fair value as at
the acquisition date. If a contingent liability is classified as equity, then it is not remeasured
and settlement is accounted for within equity. Subsequent changes in the fair value of the
contingent liability are recognised in profit or loss. A contingent liability which constitutes a
financial instrument and is classified as an asset or a liability is measured at fair value, and
changes in the fair value are reported in profit or loss.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 197
Accounting for acquisitions of non-controlling interests
The Group accounts for acquisitions of non-controlling interests that do not involve the change
in control of a company as transactions with owners and therefore no goodwill is recognised.
Adjustments to non-controlling interests are based on a proportionate amount of the net assets
of the subsidiary. Any surpluses or the difference between the costs of additional investments
and the carrying amount of assets are recognised in equity.
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when:
an investor is exposed or has rights to variable returns from its involvements with the
investee;
it has the ability to affect those returns through its power over that investee;
there is a link between power and returns.
The financial statements of subsidiaries are included in the Group’s consolidated financial
statements from the date that control commences until the date that control ceases. The
accounting policies of subsidiaries are aligned with the Group’s policies.
The existence of control is determined when an investment is acquired and when financial
statements are prepared. On the loss of control, the Group derecognises the assets and
liabilities of the subsidiary, any non-controlling interests and other components of equity related
to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit or
loss. If the Group retains any interest in the previous subsidiary, such interest is measured at
fair value at the date the control is lost. Subsequently, the interest is accounted for as an
investment in an associate (using the equity method) or as a financial asset available for sale,
depending on the level of influence retained. Changes in the parent’s ownership interest in a
subsidiary that do not result in the loss of control are accounted for as equity transactions (i.e.
transactions with owners) in other revenue reserves. If a Group-controlled company is
absorbed, the difference between the investment and the net value of acquired assets is
recognised in other revenue reserves, taking into account goodwill, if any.
Investments in associates and jointly controlled entities
Associates are those entities in which the Group has significant influence, but not control, over
their financial and operating policies. Jointly controlled entities are those entities over whose
activities the Group has joint control, established by contractual agreement and requiring
unanimous consent for financial and operating decisions. Investments in associates and jointly
controlled entities are initially recognised at cost, but are subsequently accounted for using the
equity method. The Group’s consolidated financial statements include the Group’s share of the
profit and loss of equity accounted jointly controlled entities, after adjustments to align the
accounting policies, from the date that significant influence commences until the date that
significant influence ceases. When the Group’s share of losses of an associate or a jointly
controlled entity exceeds its interest in such an entity, the carrying amount of the Group's
interest is reduced to zero and the recognition of further losses is discontinued.
Transactions eliminated from consolidated financial statements
Intra-group balances and any gains and losses arising from intra-group transactions are
eliminated in preparing the consolidated financial statements. Unrealised gains arising from
transactions with associates (accounted for using the equity method) are eliminated to the
extent of the Group’s interest in the entity. Unrealised losses are eliminated using the same
method, provided there is no evidence of impairment.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 198
b. Foreign currency translation
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of
Group companies at exchange rates at the dates of the transactions. Monetary assets and
liabilities denominated in foreign currencies at the end of the reporting period are retranslated
to the functional currency at the exchange rate at that date. Foreign exchange gains or losses
are the difference between amortised cost in the functional currency at the beginning of the
period, adjusted for effective interest and payments during the period, and the amortised cost
in foreign currency translated at the exchange rate at the end of the reporting period. Non-
monetary assets and liabilities denominated in foreign currencies that are measured at fair
value are retranslated to the functional currency at the exchange rate at the date that the fair
value was determined. Non-monetary items denominated in a foreign currency and measured
at historical cost are translated to the functional currency using the exchange rate at the date
of the transaction. Foreign exchange differences are recognised in profit or loss.
Financial statements of Group companies
The Group’s consolidated financial statements are presented in euros. Line items of each
Group company that are included in the financial statements are translated, for the purpose of
preparing consolidated financial statements, to the reporting currency as follows:
assets and liabilities from each statement of financial position presented, including goodwill,
are translated at the ECB exchange rate at the reporting date;
revenue and expenses of foreign operations are converted to euros at exchange rates
applicable at the transaction date.
Foreign exchange differences are recognised in other comprehensive income and presented
under foreign exchange differences in equity. In the case of non-wholly-owned subsidiaries
abroad, the relevant proportion of the foreign exchange difference is allocated to non-
controlling interests. When a foreign operation is disposed of in such a way that control,
significant influence or joint control is lost, the relevant cumulative amount in the translation
reserve is reclassified to profit or loss or as gain or loss on disposal. When the Group disposes
of only part of its interest in a subsidiary that includes a foreign operation while retaining control,
the relevant proportion of the cumulative amount is reattributed to non-controlling interests.
When the Group disposes of only part of its investment in an associate or jointly controlled
entity that includes a foreign operation while retaining significant influence or joint control, the
relevant proportion of the cumulative amount is reclassified to profit or loss.
c. Financial assets
The Group’s financial assets include cash and cash equivalents, receivables and loans, and
investments. The Group’s investments include investments in jointly controlled entities,
investments in associates and investments in financial instruments. The accounting policies
for investments in jointly controlled entities and associates are presented in Point a.
The Group initially recognises loans, receivables and deposits on the date that they are
originated. All other financial assets are recognised initially on the trade date, which is the date
that the Group becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from
the asset expire or when it transfers the rights to receive the contractual cash flows on the
financial asset in a transaction in which substantially all the risks and rewards of ownership of
the financial asset are transferred.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 199
Upon initial recognition, the Group’s financial instruments are classified into one the following
categories: financial assets measured at amortised cost, financial assets at fair value through
other comprehensive income and financial assets at fair value through profit or loss. The
classification depends on the selected asset management business model and on whether the
Group’s contractual cash flows from financial instruments are solely payments of principal and
interest on the principal amount outstanding. With the exception of operating receivables that
do not have a significant financing component, the Group’s financial assets are upon initial
recognition measured at fair value plus transaction costs. Operating receivables that do not
have a significant financing component are measured at transaction price determined
according to the provisions of IFRS 15. See Revenue from contracts with customers, Point m
of the accounting policies.
The impairment of financial assets is detailed in Point j1.
c1. Cash and cash equivalents
Cash and cash equivalents comprise cash balances, bank deposits with maturities of three
months or less, and other current and highly liquid investments with original maturities of three
months or less.
c2. Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading,
financial assets at fair value through profit or loss and financial assets to be measured at fair
value.
Financial assets are classified as held for trading if they are acquired for the purpose of selling
or repurchasing in the near term. Derivatives are classified as held for trading unless they are
designated as effective hedging instruments.
Financial assets that generate cash flows and are not solely payments of principal and interest
are classified and measured at fair value through profit or loss irrespective of the business
model.
In the statement of financial position, financial assets at fair value through profit or loss are
measured at fair value, including net changes therein which are recognised in profit or loss.
This category also includes derivatives and listed equity investments which the Group had not
irrevocably elected to classify at fair value through other comprehensive income. Dividends on
listed equity investments are also recognised as other revenue in the statement of profit or loss
when the Group’s right of payment has been established.
The Group’s financial assets measured at fair value through profit or loss mainly consist of
unrealised derivative financial instruments assessed on the reporting date.
c3. Financial assets at fair value through other comprehensive income (debt
instruments)
Financial assets at fair value through other comprehensive income that have the nature of a
debt instrument are the financial assets held by the Group under its business model for
collecting contractual cash flows that are solely payments of principal and interest on the
principal amount outstanding, and for sale.
The Group’s debt instruments at fair value through other comprehensive income comprise
listed bond investments that are recognised under other non-current investments.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 200
For debt instruments at fair value through other comprehensive income, interest income,
foreign exchange differences and impairment losses or reversals are recognised in the
statement of profit or loss and accounted for in the same manner as financial assets at
amortised cost. The remaining fair value changes are recognised in the statement of other
comprehensive income. Upon derecognition, the cumulative fair value change recognised in
other comprehensive income is recycled to profit or loss.
c4. Financial assets at fair value through other comprehensive income (equity
instruments)
Financial assets at fair value through other comprehensive income that have the nature of an
equity instrument are the financial assets that meet the definition of equity under IAS 32
Financial Instruments for which the Group elected to classify them irrevocably as equity
instruments designated at fair value through other comprehensive income and which are not
held for trading. The classification is determined on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are
recognised as other income in the statement of profit or loss when the Group’s right of payment
has been established.
The Group elected to classify irrevocably its non-listed equity investments under this category.
c5. Financial assets at amortised cost
The Group’s financial assets at amortised cost include financial assets held under its business
model in order to collect contractual cash flows when the cash flows are solely payments of
principal and interest on the principal amount outstanding. The Group’s financial assets at
amortised cost include loans, receivables and non-listed debt securities. Depending on their
maturity, they are classified as current financial assets (maturity of up to 12 months from the
date of the statement of financial position) or noncurrent financial assets (maturity of more than
12 months from the date of the statement of financial position). Financial assets measured at
amortised cost are recognised initially at fair value plus any directly attributable transaction
costs. Subsequent to initial recognition, they are measured at amortised cost using the
effective interest method, less any impairment losses. Gains and losses are recognised in
profit or loss when reversed, changed or impaired.
c6. Financial liabilities
The Group’s financial liabilities include liabilities arising from debt securities issued and loans
received. Upon initial recognition, they are classified as financial liabilities at fair value through
profit or loss, loans received or operating liabilities. The Group initially recognises debt
securities issued on the date that they are originated. All other financial liabilities are
recognised initially on the trade date, or when the Group becomes a party to the contractual
provisions of the instrument. Except for the loans received, all financial liabilities are initially
recognised at fair value. The loans received are measured at amortised cost using the effective
interest rate method. Depending on their maturity, they are classified as current financial
liabilities (maturity of up to 12 months from the date of the statement of financial position) or
noncurrent financial liabilities (maturity of more than 12 months from the date of the statement
of financial position). Upon the derecognition of a financial liability and amortisation using the
effective interest rate method, all gains or losses are recognised in the statement of profit or
loss.
The Group derecognises a financial liability when its contractual obligations are discharged or
cancelled or expired.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 201
c7. Derivative financial instruments
Derivative financial instruments are initially recognised at fair value. Attributable transaction
costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives
are measured at fair value, and changes therein are accounted for as described below.
When a derivative is designated as a hedging instrument in the hedge of the variability in
cash flows attributable to a particular risk associated with a recognised asset or liability or
a highly probable forecast transaction that could affect profit or loss, the effective portion of
changes in the fair value of the derivative is recognised in comprehensive income for the
period and presented in the hedging reserve. Any ineffective portion of changes in the fair
value of the derivative is recognised directly in profit or loss. If the hedging instrument no
longer meets the criteria for hedge accounting or the hedging instrument is sold, terminated
or exercised, then the Group is expected to discontinue hedge accounting. The cumulative
gain or loss recognised in other comprehensive income remains presented in the hedging
reserve as long as the forecast transaction does not affect profit or loss. If the forecast
transaction is no longer expected to occur, then the balance in other comprehensive income
is recognised immediately in profit or loss. In other cases, the amount recognised in other
comprehensive income is transferred to profit or loss in the same period in which the hedged
item affects profit or loss.
The effects of other derivatives not designated as a hedging instrument in the hedge of the
variability in cash flows or not attributable to a particular risk associated with a recognised
asset or liability are recognised in profit or loss.
The Group has the following derivative financial instruments:
Forward contracts
The Group purchases petroleum products in US dollars, but sells them primarily in euros.
Because purchases and sales are made in different currencies, mismatches occur between
purchase and selling prices that are hedged against using forward contracts.
The fair value of outstanding forward contracts at the date of the statement of financial position
is determined by means of publicly available information about the value of forward contracts
in a regulated market on the reporting date for all outstanding contracts. Gains and losses are
recognised in profit or loss as finance income or expenses.
Commodity derivative financial instruments
When petroleum products, natural gas and electricity are purchased or sold, mismatches occur
between purchase and selling prices that are hedged against using commodity derivatives.
The Group uses commodity derivatives for trading, as laid down in its strategy and its electricity
trading policy.
The fair value of outstanding commodity derivatives as at the date of the statement of financial
position is determined using publicly available information about the market value of
commodity derivatives as at the date of the statement of financial position as issued by relevant
institutions. Gains and losses are recognised in operating profit or loss as other income or
expenses.
Interest rate swaps and collars
Interest rates on loans received are exposed to a risk of interest rate fluctuations which is
hedged against using interest rate swaps and collars. The fair value of outstanding interest
rate swaps and collars at the date of the statement of financial position is determined by
discounting future cash flows arising as a result of a variable interest rate (interest proceeds
from a swap) and a fixed interest rate (payment of interest on a swap). When an interest rate
swap is designated as the hedging instrument in a hedge of the variability in cash flows

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 202
attributable to a recognised asset or liability or a forecast transaction, the effective portion of
the gain or loss on the instrument is recognised directly in comprehensive income. The
ineffective portion of the gain or loss on the instrument is recognised in profit or loss as other
finance income or expense.
Commodity forward contracts
Under IFRS 9, commodity forward contracts the purpose of which is not physical purchase or
delivery of goods, their fulfilment leading to physical settlement only, are treated as a financial
instrument and are recognised and measured in accordance with IFRS 9.
Forward purchase and sale transactions concluded to ensure physical settlement of goods are
treated outside the scope of IFRS 9 when the contract comprising those transactions is treated
as being part of the ordinary course of business to ensure physical delivery of goods, provided
that the following conditions are met:
physical delivery of goods takes place based on the contract,
the quantities sold or purchased are consistent with the Group's business needs,
the contract is binding and cannot be considered as optional.
As commodity forward contracts do not meet the above conditions, the Group treats them as
financial instruments. In the financial statements, revenue from the sale of goods and the cost
of goods sold arising from commodity forward transactions are recognised at fair value.
Outstanding commodity forward contracts are restated to fair value at each balance-sheet
date, and the effects of their restatement to fair value are recognised in the statement of profit
or loss as other operating revenue or expenses.
d. Equity
Called-up capital
The called-up capital of the controlling company Petrol d.d. takes the form of share capital, the
amount of which is defined in the Company’s articles of association. It is registered with the
Court and paid up by owners. Dividends on ordinary shares are recognised as a liability in the
period in which they were approved by the General Meeting.
Legal reserves
Legal reserves comprise shares of profit from previous years that have been retained for a
dedicated purpose, mainly for offsetting eventual future losses. When created, they are
recognised by the body responsible for the preparation of the annual report or by means of a
resolution of this body.
Fair value reserve
The fair value reserve comprises the effects of valuing financial assets at fair value through
other comprehensive income and actuarial gains and losses related to the provisions for
employee post-employment and other long-term benefits.
Hedging reserve
The hedging reserve comprises the effect of changes in the fair value of derivative financial
instruments designated as effective in hedging against the variability in cash flows.
Reserves for own shares
If the parent company or its subsidiaries acquire an ownership interest in the parent company,
the amount paid, including transaction costs less tax, is deducted from total equity in the form
of own shares until such shares are cancelled, reissued or sold. If own shares are later sold or
reissued, the consideration received is included in capital surplus net of transaction costs and
related tax effects.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 203
e. Intangible assets
Goodwill
The Group’s goodwill is the result of business combinations. For the measurement of goodwill
upon initial recognition, see Point a.
Goodwill is measured at cost less any accumulated impairment losses. In the case of equity
accounted investments, the carrying amount of goodwill is included in the carrying amount of
the investment, but the impairment loss on such an investment is not allocated to any asset,
including goodwill, that forms part of the carrying amount of the equity accounted investment.
Subsequent to initial recognition, the Group checks annually for factors which could adversely
affect the future cash flows of a cash-generating unit acquired in a business combination. In
the financial statements, a decrease in the value of a cash-generating unit is recognised as
the impairment of goodwill or of the assets of a cash-generating unit. It is charged to current
profit or loss.
Right to use concession infrastructure
The Group recognises an intangible non-current asset arising from a service concession
arrangement when it has a right to charge for usage of the concession infrastructure. An
intangible non-current asset received as consideration for providing construction or upgrade
services in a service concession arrangement is measured at fair value upon initial recognition.
Subsequent to initial recognition, the intangible non-current asset is measured at cost less
accumulated amortisation and any accumulated impairment losses. The life of the right is
linked to the duration of the concession agreement.
Development of software solutions
Development of software solutions involves the design and production of new or substantially
improved software applications. The Group capitalises the costs of developing software
solutions to the extent that the following conditions are met: the costs can be measured reliably,
the development of a software solution is technically and commercially feasible, future
economic benefits are probable, the Group has sufficient resources to complete development
and intends to use the software solution. The capitalised costs of developing software solutions
include direct labour costs and other costs that are directly attributable to preparing the asset
for its intended use.
Other intangible assets
Other intangible fixed assets with finite useful lives are carried at cost less accumulated
amortisation and accumulated impairment losses. Cost includes expenditure that is directly
attributable to the acquisition of the assets. Borrowing costs directly attributable to the
acquisition or production of a qualifying asset are recognised as part of the cost of that asset.
Intangible fixed assets are subsequently measured using the cost model. In addition to
goodwill and rights arising from concessions for the construction of gas networks and
distribution of natural gas, which are described below, the Group’s intangible fixed assets
comprise mostly software. Other than goodwill, the Group does not have intangible assets with
unidentifiable useful lives.
Subsequent expenditure
Subsequent expenditure relating to intangible assets is recognised in the carrying amount of
that asset if it is probable that the future economic benefits embodied within the part of this
asset will flow to the Group and the cost can be measured reliably. All other expenditure is
recognised in profit or loss as incurred.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 204
Amortisation
Amortisation is calculated on a straight-line basis, taking into account the useful life of
intangible fixed assets. Amortisation begins when the asset is available for use.
Estimated useful lives for the current and comparative years are as follows:
Amortisation methods, useful lives and residual values are reviewed at each financial year-
end and adjusted if appropriate.
The impairment of assets is detailed in Point j2.
f. Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation
and accumulated impairment losses, with the exception of land, which is measured at cost less
accumulated impairment losses. Cost includes expenditure that is directly attributable to the
acquisition of the assets. Parts of an item of property, plant and equipment having different
useful lives are accounted for as separate items of property, plant and equipment. Borrowing
costs directly attributable to the acquisition, construction or production of a qualifying asset are
recognised as part of the cost of that asset. Items of property, plant and equipment are
subsequently measured using the cost model.
Subsequent expenditure
Subsequent expenditure relating to property, plant and equipment is recognised in the carrying
amount of that asset if it is probable that the future economic benefits embodied within the part
of this asset will flow to the Group and the cost can be measured reliably. All other expenditure
(e.g. day-to-day servicing) is recognised in profit or loss as incurred.
Depreciation
Depreciation is calculated on a straight-line basis, taking into account the useful life of each
part (component) of an item of property, plant and equipment. Leased assets are depreciated
by taking into account the lease term and their useful lives. Land is not depreciated.
Depreciation begins when the asset is available for use. Construction work in progress is not
depreciated.
Estimated useful lives for the current and comparative periods are as follows:
(in %)
2021
2020
Right to use concession infrastructure 2.00-20.00 2.00-20.00
Material and other rights 10.00-33.33 10.00-33.33
Contracts with customers 20.00 20.00
Other rights 3.33-20.00 3.33-20.00
(in %)
2021
2020
Buildings:
Buildings at service stations 2.50-10.00 2.50-10.00
Above-ground and underground reservoirs 2.85-50.00 2.85-50.00
Underground service paths at service stations 5.00-14.30 5.00-14.30
Other buildings 1.43-50.00 1.43-50.00
Equipment:
Mechanical and electronic equipment for maintenance of 10.00-25.00 10.00-25.00
Gas station equipment 3.33-20.00 3.33-20.00
Pumping equipment at service stations 5.00-25.00 5.00-25.00
Motor vehicles 10.00-25.00 10.00-25.00
Freight cars, rail tankers 25.00 25.00
Computer hardware 15.00-25.00 15.00-25.00
Office equipment, furniture 6.70-16.10 6.70-16.10
Small tools:
33.33 33.33
Environmental fixed assets:
4.00-25.00 4.00-25.00

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 205
Residual values and useful lives of an asset are reviewed annually and adjusted if necessary.
Gains and losses on disposal or elimination are determined by comparing the proceeds from
disposal with the carrying amount. Gains and losses on disposal are recognised in profit or
loss. Available-for-sale items of property, plant and equipment are presented separately from
other assets and are not depreciated in the year of the disposal.
The impairment of assets is detailed in Point j2.
Environmental fixed assets
Environmental tangible fixed assets acquired under the scheme for the creation and use of
revenue deferred for the purpose of environmental rehabilitation are carried and presented
separately. More information about deferred revenue relating to environmental fixed assets is
available in Point l.
g. Investment property
Investment property is property held by the Group either to earn rental income or for capital
appreciation or for both. It is measured at cost less accumulated depreciation and accumulated
impairment losses. Investment property is measured using the cost model. The depreciation
method and rates are the same as for other tangible assets. The impairment of assets is
detailed in Point j2.
The Group considers as investment property all property held by the Group that is fully or
partially leased out to third parties. The Group's consideration takes into account the intended
use of the property and the long-term goals pursued.
The value of the property that is leased out as a whole is recognised as investment property
based on separate records. The parts of the property that are leased out and constitute an
integral part of the property used for the performance of core activities is recognised as
investment property based on the proportion of leased out surface area if exceeding 5 percent
of the property value.
h. Leases
The Group holds various items of business property (land, business premises and buildings),
equipment and cars under a lease. Lease conditions are subject to negotiation on a case-by-
case basis and vary depending on the term and type of a lease. The Group assesses at
contract inception whether a contract is, or contains, a lease. That is the case if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.
The Group determines the lease term based on the noncancellable period of a lease, taking
into account the period covered by an option to extend the lease and the period covered by an
option to terminate the lease. The Group also assesses the probability of the above options.
The term of a lease depends on the type of the leased asset and range:
from 5 to 30 years for land,
from 5 to 20 years for business premises and buildings,
from 1 to 10 years for equipment,
from 3 to 6 years for cars.
The Group applies a single recognition and measurement approach for all leases, except for
short-term leases and leases of low-value assets. With regard to the leases of low-value assets

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 206
and short-term leases, the Group records lease payments as an expense for the period to
which a lease relates.
For all other leases, the Group has recognised lease liabilities and right-of-use assets.
The Group recognises right-of-use assets at the commencement date of the lease. Right-of-
use assets are measured at cost, less any accumulated depreciation and impairment losses,
and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised initially, initial direct costs incurred, and
lease payments made at or before the commencement date less any lease incentives
received.
The depreciation rates of right-of-use assets are as follows:
If ownership of the leased asset transfers to the Group at the end of the lease term or the
Group exercises a purchase option, depreciation is calculated using the estimated useful life
of the asset.
The right-of-use assets are also subject to impairment. Refer to the accounting policies in Point
k) Impairment of assets.
Lease liabilities are recognised at the present value of lease payments to be made over the
lease term, which corresponds to a discounted value of lease payments to be paid by the
Group over the lease term under the lease contract while also taking into account the Group’s
borrowing rate. The lease payments include fixed payments, less any lease incentives
receivables, and variable lease payments. The lease payments also include the exercise price
of a purchase option reasonably certain to be exercised by the Group and payments of
penalties for terminating the lease, if the lease term reflects the Group exercising the option to
terminate.
In calculating the present value of lease payments, the Group uses its incremental borrowing
rate at the lease commencement date because the interest rate implicit in the lease is not
readily determinable. After the commencement date, the amount of lease liabilities is increased
to reflect the accretion of interest and reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if there is a modification, a change in the
lease term, a change in the lease payments (e.g. changes to future payments resulting from a
change in an index or rate used to determine such lease payments) or a change in the
assessment of an option to purchase the underlying asset.
The Group has recognised its lease liabilities in item lease liabilities, as disclosed in Point e.
At lease inception, lease liabilities correspond to the value of right-of-use assets and begin to
decrease as lease payments are made, with the value of right-of-use assets decreasing in line
with the depreciation charge over the lease term. Depreciation rates are estimated by taking
into account the term of a lease. Interest expense is charged to finance expenses for the
period.
(in %)
2021
2020
Rights of use:
Lands 3.33-20.00 3.33-20.00
Buildings 5.00-20.00 5.00-20.00
Equipment 10.00-100.00 10.00-100.00
Motor vehicles 16.67-33.33 16.67-33.33

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 207
Short-term leases and leases of low-value assets
The Group applies the exemption to short-term lease recognition (i.e. to leases that have a
lease term of 12 months or less and do not contain a purchase option). It also applies the lease
of low-value assets recognition exemption to leases of assets that are considered to be low
value. The Group recognises lease payments on short-term leases and leases of low-value
assets as expense on a straight-line basis over the lease term.
i. Inventories
Inventories of merchandise and materials are measured at the lower of cost and net realisable
value.
The cost is made up of the purchase price, import duties and direct costs of purchase. Any
discounts are subtracted from the purchase price. Direct costs of purchase include
transportation costs, costs of loading, transhipment and unloading, transport insurance costs,
goods tracking costs, costs of agency arrangements, other similar costs incurred before initial
storage and borne by the purchaser. Discounts on purchase prices include discounts indicated
on invoices and subsequently obtained discounts relating to a specific purchase.
Net realisable value is the estimated selling price in the ordinary course of business, less the
estimated costs of completion and selling expenses. The Group checks the net realisable value
of inventories at the statement of financial position date. When this value is lower than their
carrying amount, inventories are impaired. Damaged, expired and unusable inventories are
written off regularly during the year on an item by item basis.
The moving average price method is used to assess the use of inventories.
j. Impairment
j1. Financial assets
In accordance with IFRS 9, the Group made a transition from the incurred loss model to the
expected loss model based on which the Group recognises not only incurred losses but also
expected future losses.
A financial asset is impaired if objective evidence indicates that one or more loss events have
occurred that had a negative effect on the estimated future cash flows of that asset and this
can be measured reliably.
Objective evidence that financial assets are impaired includes default or delinquency by a
debtor, restructuring of an amount due to the Group for which the Group granted its approval,
indications that a debtor will enter bankruptcy, and the disappearance of an active market for
an instrument. For an investment in an equity security, a significant or prolonged decline in its
fair value below its cost is objective evidence of impairment.
Impairment of receivables and of loans granted
The Group considers evidence of impairment for receivables individually or collectively. All
significant receivables are assessed individually for specific impairment. If it is assessed that
the carrying amount of receivables exceeds their fair value, i.e. the collectible amount, the
receivables are impaired. Receivables for which it is assumed they will not be settled by the
original date of payment or up to their full amount are deemed doubtful; should court
proceedings be initiated, they are deemed disputed.
Impairment assessment is based on expected credit losses (ECLs) linked to a default on
receivables and loans that is possible within the next 12 months, unless there has been a

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 208
significant increase in credit risk since initial recognition. In such case, the impairment
assessment is determined based on the probability of default over the lifetime of the financial
asset (LECL). ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group expects to receive. The
expected cash flows will include cash flows from the sale of collateral.
Impairments for ECLs are assessed in two stages. For credit exposures for which there has
not been a significant increase in credit risk since initial recognition, impairments for ECLs are
provided for credit losses that result from default events that are possible within the next 12
months. For those credit exposures for which there has been a significant increase in credit
risk since initial recognition, the Group recognises a loss allowance for losses expected over
the remaining life of the exposure, irrespective of the timing of the default.
Receivables that are not individually significant are collectively assessed for impairment by
grouping together receivables with similar risk characteristics. Receivables are grouped
together by age. In assessing collective impairment, the Group uses historical trends of the
probability of default, timing of recoveries and the amount of loss incurred, adjusted for
management’s judgement as to whether current economic and credit conditions are such that
the actual losses are likely to be greater or less than suggested by historical trends.
The Group considers a financial asset to be in default when contractual payments are 60 days
past due. However, in certain cases the Group may also consider the credit risk to be higher
when information indicates that the Group is unlikely to receive the outstanding contractual
amounts in full. A financial asset is written off when there is no reasonable expectation of
recovering contractual cash flows.
According to the categorisation of the statement of profit or loss laid down by the Companies
Act, the creation and reversal of loss allowances as well as written-off receivables
subsequently collected fall under operating revenue or expenses. The Group deems the
categorisation of these items as either finance income or expense to be more appropriate,
since operating receivables are carried as nonderivative financial assets.
The Group evaluates evidence about the impairment of loans individually for each significant
loan.
Impairment of financial assets at fair value through other comprehensive income
Impairment losses on financial assets at fair value through other comprehensive income are
recognised by transferring any cumulative loss that has been previously recognised in other
comprehensive income for the period and presented in the fair value reserve to profit or loss.
Any subsequent increase in the fair value of an impaired available for-sale equity security is
recognised in other comprehensive income for the period or in the fair value reserve.
Debt instruments at fair value through other comprehensive income consist solely of listed
sovereign bonds classified as low credit risk investments. Under the policy selected, the Group
measures expected credit losses on such instruments on a yearly basis. When there has been
a significant increase in credit risk since recognition, the Group recognises a loss allowance
based on the lifetime expected credit losses.
j2. Non-financial assets
The Group reviews at each reporting date the carrying amounts of significant non-financial
assets to determine whether there is any indication of impairment. If any such indication exists,
then the asset’s recoverable amount is estimated.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 209
The recoverable amount of an asset or cash-generating unit is the greater of its value in use
and its fair value less costs to sell. In assessing the asset’s value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. For
the purpose of impairment testing, assets that cannot be tested individually are grouped
together into the smallest group of assets that generate cash inflows from continuing use and
are largely independent of the cash inflows of other assets or groups of assets (the “cash
generating unit”).
The impairment of an asset or a cash generating unit is recognised if its carrying amount
exceeds its recoverable amount. Impairment is recognised in profit or loss. Impairment losses
recognised in respect of a cash generating unit are allocated so as to first reduce the carrying
amount of any goodwill allocated to the unit, and then to reduce the carrying amounts of the
other assets in the unit (group of units) on a pro rata basis.
In the case of points of sale, the Group identified the point-of-sale network per country as a
cash-generating unit and consequently also checks for indications of impairment at the level
of the point-of-sale network rather than at the level of individual points of sale. Based on an
analysis of interdependence of individual points of sale, the Group determined that identifying
the point-of-sale network in an individual country as a cash-generating unit was the most
appropriate approach.
An impairment loss on goodwill is not reversed. For other assets, impairment losses
recognised in prior periods are assessed at the end of the reporting period for any indications
that the loss has decreased or no longer exists. An impairment loss is reversed if there has
been a change in the estimates used to determine the recoverable amount. An impairment
loss is reversed to the extent that the asset’s increased carrying amount does not exceed the
carrying amount that would have been determined net of depreciation or amortisation if no
impairment loss had been recognised in previous years.
Goodwill that forms part of the carrying amount of an equity accounted investment in an
associate or jointly controlled entity is not recognised separately and therefore is not tested for
impairment separately. Instead, the entire amount of the investment in an associate is tested
for impairment as a single asset when there is objective evidence that the investment in an
associate may be impaired.
k. Provisions
Provisions are recognised if, as a result of a past event, the Group has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. The amount of the provisions is
determined as the present value of payments that the Group will be expected to make based
on the contracts it has concluded and applicable legislation. To determine the amount, the
Group relies on actuarial methods and on opinions provided by legal experts.
Significant provisions include:
Provisions for employee post-employment and other long-term benefits
Pursuant to the law, the collective agreement and the internal rules, the Group is obligated to
pay its employees jubilee benefits and post-employment benefits on retirement, for which it
has established long-term provisions. Other obligations related to employee post-employment
benefits do not exist.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 210
The provisions amount to estimated future payments for post-employment benefits on
retirement and jubilee benefits discounted to the end of the reporting period. The calculation
is made separately for each employee by taking into account the costs of post-employment
benefits on retirement and the costs of all expected jubilee benefits until retirement. The
calculation using the projected unit credit method is performed by a certified actuary. Post-
employment benefits on retirement and jubilee benefits are charged against the provisions
created.
Labour costs and costs of interest are recognised in the statement of profit or loss, whereas
the adjustment of post-employment benefits or unrealised actuarial gains or losses arising from
post-employment benefits are recognised in other comprehensive income.
Provisions for employee post-employment and other long-term benefits at third-party
managed service stations
The business cooperation agreements entered into by Group companies with service station
managers stipulate that the rights of employees at third-party managed service stations to
jubilee benefits and post-employment benefits on retirement are equal to the rights of Group
company employees. The contractual obligation of Group companies to reimburse the costs
arising from such rights to service station managers represents a basis for the recognition of
long-term provisions. The provisions amount to estimated future payments for post-
employment benefits on retirement and jubilee benefits discounted to the end of the reporting
period. The obligation is calculated separately for each employee at a third-party managed
service station by estimating the costs of post-employment benefits on retirement and the costs
of all expected jubilee benefits until retirement. The calculation using the projected unit credit
method is performed by a certified actuary. Reimbursed costs arising from post-employment
benefits on retirement and jubilee benefits are charged against the provisions created.
Labour costs and costs of interest are recognised in the statement of profit or loss, whereas
the adjustment of post-employment benefits or unrealised actuarial gains or losses arising from
post-employment benefits are recognised in other comprehensive income.
Provisions for lawsuits
There are several lawsuits that have been filed against Group companies, for which the
potential need for provisions is estimated on an ongoing basis. Provisions are recognised if,
as a result of a past event, companies have a present legal or constructive obligation that can
be estimated reliably, and if it is probable that an outflow of economic benefits will be required
to settle the obligation. Contingent liabilities are not disclosed in the financial statements
because their actual existence will only be confirmed by the occurrence or non-occurrence of
events in unforeseeable future, which is beyond the control of Group companies. The
management of a company regularly checks if an outflow of economic benefits is probable to
settle contingent liabilities. If it becomes probable, the contingent liability is restated and
provisions are created for it in the financial statements as soon as the level of probability
changes.
Provisions for onerous contracts
The Group creates provisions for onerous contracts when the market situation causes the
costs of meeting contractual obligations to exceed the expected economic benefit of long-term
contracts.
The provisions are determined based on estimated purchasing and selling price levels and
quantities, taking into account the costs to sell and general and administrative costs.
The Group determines the amount of the provisions based on estimated economic benefits
and the costs of services under long-term contracts for the leasing of capacities, taking into

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 211
account the utilisation rate of transmission capacities. The provisions created by the Group for
long-term contracts for the leasing of transmission and storage capacities cover the entire
contract period.
l. Long-term deferred revenue
Government and other subsidies received to cover costs are recognised as a decrease in
corresponding costs. Subsidies received as a compensation for assets are recognised strictly
as revenue over the periods in which the costs that they are intended to compensate are
incurred. The revenue, or the decrease in costs, is recognised when it can be reasonably
expected it will result in receipts or where it is sufficiently certain that no unfulfilled conditions
exist.
Long-term deferred revenue
Long-term deferred revenue comprises deferred revenue from funds granted for the
environmental rehabilitation of service stations, road tankers and storage facilities.
Environmental assets, presented as part of the Group’s property, plant and equipment items,
were approved by means of a decision of the Ministry of the Environment and Spatial Planning
as part of the ownership transformation of the company Petrol d.d., Ljubljana and were
recognised as such in the opening financial statements of Petrol d.d., Ljubljana as at 1 January
1993 that were prepared in accordance with the regulations governing the ownership
transformation of companies. Deferred revenue is restated under revenue in proportion to the
depreciation of environmental fixed assets. A portion of deferred revenue attributable to the
period under 12 months is moved to current deferred revenue.
m. Revenue from contracts with customers
Revenue from contracts with customers is recognised once control of goods or services is
transferred to a customer at an amount that reflects the consideration to which the Group
expects to be entitled in exchange for such goods or services. Revenue from contracts with
customers is recognised at the fair value of the consideration received or receivable, net of
returns and discounts, trade discounts and volume rebates. Revenue is recorded when the
customer obtains control of the goods or benefits from the services rendered.
Revenue is recognised as follows:
Sale of goods
A sale of goods is recognised when the Group delivers goods to a customer, the customer
accepts the goods, and the collectability of the related receivables is reasonably assured. As
of the sale, the Group no longer has control of the goods or services sold. Revenue from the
sale of goods does not include duties paid upon the purchase and duties paid upon the sale
of the goods.
Gains on commodity forward contracts are also recognised as revenue from the sale of goods.
Sale of services
A sale of services is recognised in the accounting period in which the services are rendered,
by reference to the completion of the transaction assessed on the basis of the actual service
provided as a proportion of total services to be provided.
For long-term projects, the revenue from services rendered is recognised based on the stage
of completion as at the balance sheet date. Under this method, the revenue is recognised in
the accounting period in which the services are rendered.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 212
Loyalty scheme
The Group offers Petrol Club card holders certain discounts on their purchases at service
stations or on the supply of gas and electricity, based on the points collected from their previous
purchases. As some of the discounts can be used in the following year, the Group defers them
to match its revenue with the expenses incurred to generate the revenue.
Instalment sales
In instalment sales, the Group recognises separately revenue from the sale of goods and
finance income deferred over the entire contract term. Finance income to total purchase price
ratio is assessed based on discounted future cash flows flowing to the Group based on the
sale.
Sale in the name and for the account of third parties
The Group has entered into contracts with customers for the sale of merchandise in the name
and on behalf of suppliers. Based on these contracts, the Group delivers goods to customers,
receiving in exchange the difference between the final selling price and the cost negotiated in
advance. The difference is recognised as sales revenue.
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to
the customer. The Group’s contract assets include accrued revenue from goods and services
delivered to customers.
Trade receivables
A receivable is the Group’s right to an amount of consideration that is unconditional (i.e. only
the passage of time is required before payment of the consideration is due). See accounting
policies on the recognition of financial assets in the section Financial assets.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the
Group has received consideration. The Group’s contract liabilities include the liabilities from
collaterals received, the loyalty scheme and granted discounts. Contract liabilities are
recognised as revenue when the Group satisfies its performance obligation.
Variable consideration
If the consideration in a contract includes a variable amount, the Group estimates the amount
of consideration to which it will be entitled in exchange for transferring the goods to the
customer. The variable consideration estimated by the Group at contract inception as
constrained remains constrained until it is highly probable that a significant revenue reversal
in the amount of revenue recognised will not occur. Variable consideration refers to volume
rebates granted to customers.
The Group provides retrospective volume rebates to certain customers once the quantity of
products purchased during the period exceeds a threshold specified in the contract. Rebates
are offset against amounts payable by the customer. To estimate the variable consideration
for the expected future rebates, the Group applies the most likely amount method for contracts
with the expected value method. The selected method that best predicts the amount of variable
consideration is primarily driven by the number of volume thresholds contained in the contract.
The Group then applies the requirements on constraining estimates of variable consideration
and recognises a refund liability for the expected future rebates.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 213
n. Finance income and expenses
Finance income comprises interest income on financial assets, gains on the disposal of
financial assets at fair value through other comprehensive income, written-off or impaired
receivables subsequently collected, changes in the fair value of financial assets at fair value
through profit or loss, foreign exchange gains and gains on hedging instruments that are
recognised in profit or loss. Interest income is recognised as it accrues using the effective
interest method.
Finance expenses comprise borrowing costs (unless capitalised), foreign exchange losses,
changes in the fair value of financial assets at fair value through profit or loss, impairment
losses recognised on financial assets, loss allowances for receivables and losses on hedging
instruments that are recognised in profit or loss. Borrowing costs are recognised in profit or
loss using the effective interest method.
o. Taxes
Taxes comprise current tax and deferred tax liabilities. Taxes are recognised in profit or loss
except to the extent that they relate to business combinations or items recognised directly in
other comprehensive income.
Current tax liabilities are based on the taxable profit for the year. Taxable profit differs from the
net profit reported in the statement of profit or loss as it excludes revenue and expense items
taxable or deductible in other years and other items that are never subject to taxation or
deduction. The Group’s current tax liabilities are calculated using the tax rates effective on the
reporting date.
Deferred tax is reported in its entirety using the statement of financial position liability method
for temporary differences between the tax base of assets and liabilities and their carrying
amounts in the separate financial statements of Group companies. Deferred tax is determined
using the tax rates (and laws) that are expected to apply when a deferred tax asset is realised
or a deferred tax liability is settled.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will
be available against which they can be utilised in the future.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to
set off current tax assets against current income tax liabilities and the deferred taxes relate to
the same taxable entity and the same taxation authority.
p. Determination of fair value
A number of the Group’s accounting policies require the determination of fair value of both
financial and non-financial assets and liabilities, either for measurement of individual assets
(measurement method or business combination) or for additional fair value disclosure.
Fair value is the amount for which an asset could be sold or a liability exchanged between
knowledgeable, willing parties in an arm’s length transaction. The Group determines the fair
value of financial instruments by taking into account the following fair value hierarchy:
Level 1 comprises quoted prices in active markets for identical assets or liabilities;
Level 2 comprises values other than quoted prices included within Level 1 that are
observable either directly (prices for identical or similar assets or liabilities in markets that
are less active or inactive) or indirectly (e.g. values derived from quoted prices in an active
market, based on interest rates and yield curves, implied volatilities and credit spreads);

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Level 3 comprises inputs for the asset or liability that are not based on observable market
data. Unobservable inputs need to reflect the assumptions that market participants would
use when determining a price for the asset or liability, including risk assumptions.
The Group uses quoted prices as the basis for the fair value of financial instruments. If a
financial instrument is not quoted on a regulated market or the market is considered as inactive,
the Group uses Level 2 and Level 3 inputs to determine the fair value of a financial instrument.
Where applicable, further information about the assumptions made when determining fair
values is disclosed in the notes specific to that asset or liability of the Group.
The methods of determining the fair values of individual groups of assets for measurement or
reporting purposes are described below.
Intangible assets
The fair value of intangible assets is based on the discounted cash flows expected to be
derived from the use or eventual sale of the assets.
Property, plant and equipment
The fair value of property, plant and equipment is the same as their market value. The market
value of property is the estimated amount for which a property could be sold on the date of
valuation and after proper marketing. The market value of equipment is based on market prices
for similar items.
Investment property
The value of investment property is assessed by considering the aggregate of the estimated
cash flows expected to be received from renting out the property. A yield that reflects the
specific risks is included in the property valuation based on discounted net annual cash flows.
Inventories
The fair value of inventories acquired in business combinations is determined based on their
expected selling price in the ordinary course of business less the estimated costs of sale.
Financial assets at fair value through profit or loss and financial assets at fair value
through other comprehensive income
The fair value of financial assets at fair value through profit or loss and financial assets at fair
value through other comprehensive income is determined by reference to the above fair value
hierarchy for financial instruments.
Receivables and loans granted
The fair value of receivables and loans is calculated as the present value of future cash flows,
discounted at the market rate of interest at the end of the reporting period. The estimate takes
into account the credit risk associated with these financial assets.
Derivative financial instruments
The fair value of forward contracts equals their market price at the reporting date.
The fair value of interest rate swaps at the reporting date is assessed by discounting future
cash flows arising from the variable interest rate (interest received from a swap) and the
fixed interest rate (interest paid under a swap).
The fair value of commodity derivatives equals their market price as at the reporting date,
which is determined using publicly available information about the market value of
commodity derivatives as at the date of the statement of financial position as issued by
relevant institutions.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 215
Non-derivative financial liabilities
For reporting purposes, fair value is calculated using the present value of future payments of
the principal and interest, discounted at the market rate of interest at the end of the reporting
period.
r. Earnings per share
The Group presents basic and diluted earnings per share for its ordinary shares. Basic
earnings per share are calculated by dividing the profit or loss attributable to ordinary
shareholders by the weighted average number of ordinary shares during the period. Diluted
earnings per share are calculated by adjusting the profit or loss attributable to ordinary
shareholders and the weighted average number of ordinary shares during the period for the
effects of all potential ordinary shares, which comprise convertible bonds and share options
granted to employees. Because the Group has no convertible bonds or share options granted
to employees, its basic earnings per share are the same as its diluted earnings per share.
s. Operating segments
An operating segment is a component of the Group that engages in business activities from
which it earns revenue and incurs expenses that relate to transactions with any of the Group’s
other components. Segments differ from one another in terms of risks and returns. Their results
are reviewed regularly by the management to make decisions about resources to be allocated
to a segment and assess the Group’s performance.
The Group uses the following segments in the preparation and presentation of its financial
statements:
sales,
energy and environmental solutions, and production.
t. Statement of cash flows
The section of the statement of cash flows referring to operating activities has been prepared
using the indirect method based on data derived from the statement of financial position as at
31 December 2020 and 31 December 2021 and data derived from the statement of profit or
loss for the period January to December 2021. Default interest paid and received in connection
with operating receivables is allocated to cash flows from operating activities. Interest on loans,
and dividends paid and received are allocated to cash flows from financing activities.
4. Significant accounting policies of the Company
The Company applied the accounting policies set out below consistently to all periods
presented in these financial statements.
a. Foreign currency translation
Transactions in foreign currencies are translated to the functional currency at the exchange
rate at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies at the end of the reporting period are retranslated to the functional currency at the
exchange rate at that date. Foreign exchange gains or losses are the difference between
amortised cost in the functional currency at the beginning of the period, adjusted for effective
interest and payments during the period, and the amortised cost in foreign currency translated
at the exchange rate at the end of the reporting period. Non-monetary assets and liabilities
denominated in foreign currencies that are measured at fair value are retranslated to the
functional currency at the exchange rate at the date that the fair value was determined. Non-

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 216
monetary items denominated in a foreign currency and measured at historical cost are
translated to the functional currency using the exchange rate at the date of the transaction.
Foreign exchange differences are recognised in profit or loss.
b. Investments in subsidiaries
In the Company’s financial statements, investments in subsidiaries are accounted for at cost.
The Company recognises income from an investment only to the extent that it originates from
a distribution of accumulated profits of the investee arising after the date of acquisition.
The impairment of financial assets is detailed in Point k1.
c. Investments in associates and jointly controlled entities
The Company measures investments in associates and jointly controlled entities at cost.
The impairment of financial assets is detailed in Point k1.
d. Financial assets
The Company’s financial assets include cash and cash equivalents, receivables and loans,
and investments. The Company’s investments include investments in jointly controlled entities,
investments in associates and investments in financial instruments. The accounting policies
for investments in subsidiaries, jointly controlled entities and associates are presented in
Points b and c.
The Company initially recognises loans, receivables and deposits on the date that they are
originated. All other financial assets are recognised initially on the trade date, which is the date
that the Company becomes a party to the contractual provisions of the instrument.
The Company derecognises a financial asset when the contractual rights to the cash flows
from the asset expire or when it transfers the rights to receive the contractual cash flows on
the financial asset in a transaction in which substantially all the risks and rewards of ownership
of the financial asset are transferred.
Upon initial recognition, the Company’s financial instruments are classified into one the
following categories: financial assets measured at amortised cost, financial assets at fair value
through other comprehensive income and financial assets at fair value through profit or loss.
The classification depends on the selected asset management business model and on whether
the Company’s contractual cash flows from financial instruments are solely payments of
principal and interest on the principal amount outstanding. With the exception of operating
receivables that do not have a significant financing component, the Company’s financial assets
are upon initial recognition measured at fair value plus transaction costs. Operating receivables
that do not have a significant financing component are measured at transaction price
determined according to the provisions of IFRS 15. See Revenue from contracts with
customers, Point n of the accounting policies.
The impairment of financial assets is detailed in Point k1.
d1. Cash and cash equivalents
Cash and cash equivalents comprise cash balances, bank deposits with maturities of three
months or less, and other current and highly liquid investments with original maturities of three
months or less.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 217
d2. Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading,
financial assets at fair value through profit or loss and financial assets to be measured at fair
value.
Financial assets are classified as held for trading if they are acquired for the purpose of selling
or repurchasing in the near term. Derivatives are classified as held for trading unless they are
designated as effective hedging instruments.
Financial assets that generate cash flows and are not solely payments of principal and interest
are classified and measured at fair value through profit or loss irrespective of the business
model.
In the statement of financial position, financial assets at fair value through profit or loss are
measured at fair value, including net changes therein which are recognised in profit or loss.
This category also includes derivatives and listed equity investments which the Company had
not irrevocably elected to classify at fair value through other comprehensive income. Dividends
on listed equity investments are also recognised as other income in the statement of profit or
loss when the Company’s right of payment has been established.
d3. Financial assets at fair value through other comprehensive income (debt
instruments)
Financial assets at fair value through other comprehensive income that have the nature of a
debt instrument are the financial assets held by the Company under its business model for
collecting contractual cash flows that are solely payments of principal and interest on the
principal amount outstanding, and for sale.
The Company’s debt instruments at fair value through other comprehensive income comprise
listed bond investments that are recognised under other non-current investments.
For debt instruments at fair value through other comprehensive income, interest income,
foreign exchange differences and impairment losses or reversals are recognised in the
statement of profit or loss and accounted for in the same manner as financial assets at
amortised cost. The remaining fair value changes are recognised in the statement of other
comprehensive income. Upon derecognition, the cumulative fair value change recognised in
other comprehensive income is recycled to profit or loss.
d4. Financial assets at fair value through other comprehensive income (equity
instruments)
Financial assets at fair value through other comprehensive income that have the nature of an
equity instrument are the financial assets that meet the definition of equity under IAS 32
Financial Instruments for which the Company elected to classify them irrevocably as equity
instruments designated at fair value through other comprehensive income and which are not
held for trading. The classification is determined on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are
recognised as other income in the statement of profit or loss when the Company’s right of
payment has been established.
The Company elected to classify irrevocably its non-listed equity investments under this
category.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 218
d5. Financial assets at amortised cost
The Company’s financial assets at amortised cost include financial assets held under its
business model in order to collect contractual cash flows when the cash flows are solely
payments of principal and interest on the principal amount outstanding. The Company’s
financial assets at amortised cost include loans, receivables and non-listed debt securities.
Depending on their maturity, they are classified as current financial assets (maturity of up to
12 months from the date of the statement of financial position) or non-current financial assets
(maturity of more than 12 months from the date of the statement of financial position).
Financial assets measured at amortised cost are recognised initially at fair value plus any
directly attributable transaction costs. Subsequent to initial recognition, they are measured at
amortised cost using the effective interest method, less any impairment losses. Gains and
losses are recognised in profit or loss when reversed, changed or impaired.
d6. Financial liabilities
The Company’s financial liabilities include liabilities arising from debt securities issued and
loans received. Upon initial recognition, they are classified as financial liabilities at fair value
through profit or loss, loans received or operating liabilities. The Company initially recognises
debt securities issued on the date that they are originated. All other financial liabilities are
recognised initially on the trade date, or when the Company becomes a party to the contractual
provisions of the instrument. Except for the loans received, all financial liabilities are initially
recognised at fair value. The loans received are measured at amortised cost using the effective
interest rate method. Depending on their maturity, they are classified as current financial
liabilities (maturity of up to 12 months from the date of the statement of financial position) or
non-current financial liabilities (maturity of more than 12 months from the date of the statement
of financial position).
Upon the derecognition of a financial liability and amortisation using the effective interest rate
method, all gains or losses are recognised in the statement of profit or loss.
The Company derecognises a financial liability when its contractual obligations are discharged
or cancelled or expire.
d7. Derivative financial instruments
Derivative financial instruments are initially recognised at fair value. Attributable transaction
costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives
are measured at fair value, and changes therein are accounted for as described below.
When a derivative is designated as a hedging instrument in the hedge of the variability in
cash flows attributable to a particular risk associated with a recognised asset or liability or
a highly probable forecast transaction that could affect profit or loss, the effective portion of
changes in the fair value of the derivative is recognised in other comprehensive income for
the period and presented in the hedging reserve. Any ineffective portion of changes in the
fair value of the derivative is recognised directly in profit or loss. If the hedging instrument
no longer meets the criteria for hedge accounting or the hedging instrument is sold,
terminated or exercised, then the Company is expected to discontinue hedge accounting.
The cumulative gain or loss recognised in other comprehensive income remains presented
in the hedging reserve as long as the forecast transaction does not affect profit or loss. If
the forecast transaction is no longer expected to occur, then the balance in other
comprehensive income is recognised immediately in profit or loss. In other cases, the
amount recognised in other comprehensive income is transferred to profit or loss in the
same period in which the hedged item affects profit or loss.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 219
The effects of other derivatives not designated as a hedging instrument in the hedge of the
variability in cash flows or not attributable to a particular risk associated with a recognised
asset or liability are recognised in profit or loss.
The Company uses the following derivative financial instruments:
Forward contracts
The Company purchases petroleum products in US dollars but sells them primarily in euros.
Because purchases and sales are made in different currencies, mismatches occur between
purchase and selling prices that are hedged against using forward contracts.
The fair value of forward contracts at the date of the statement of financial position is
determined by means of publicly available information about the value of forward contracts in
a regulated market on the reporting date for all outstanding contracts. Gains and losses are
recognised in profit or loss as other income or expenses.
Commodity derivative financial instruments
When petroleum products and electricity are purchased or sold, mismatches occur between
purchase and selling prices that are hedged against using commodity derivatives.
The fair value of outstanding commodity derivatives as at the date of the statement of financial
position is determined using publicly available information about the market value of
commodity derivatives as at the date of the statement of financial position as issued by relevant
institutions. Gains and losses are recognised in profit or loss as other income or expenses.
Interest rate swaps and collars
Interest rates on loans received are exposed to a risk of interest rate fluctuations which is
hedged against using interest rate swaps and collars. The fair value of outstanding interest
rate swaps and collars at the date of the statement of financial position is determined by
discounting future cash flows arising as a result of a variable interest rate (interest proceeds
from a swap) and a fixed interest rate (payment of interest on a swap). When an interest rate
swap is designated as the hedging instrument in a hedge of the variability in cash flows
attributable to a recognised asset or liability or a forecast transaction, the effective portion of
the gain or loss on the instrument is recognised directly in comprehensive income. The
ineffective portion of the gain or loss on the instrument is recognised in profit or loss as other
finance income or expense.
Commodity forward contracts
Under IFRS 9, commodity forward contracts the purpose of which is not physical purchase or
delivery of goods, their fulfilment leading to physical settlement only, are treated as a financial
instrument and are recognised and measured in accordance with IFRS 9.
Forward purchase and sale transactions concluded to ensure physical settlement of goods are
treated outside the scope of IFRS 9 when the contract comprising those transactions is treated
as being part of the ordinary course of business to ensure physical delivery of goods, provided
that the following conditions are met:
physical delivery of goods takes place based on the contract,
the quantities sold or purchased are consistent with the Company's business needs,
the contract is binding and cannot be considered as optional.
As commodity forward contracts do not meet the above conditions, the Company treats them
as financial instruments. In the financial statements, revenue from the sale of goods and the
cost of goods sold arising from commodity forward transactions are recognised at fair value.
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date, and the effects of their restatement to fair value are recognised in the statement of profit
or loss as other operating revenue or expenses.
e. Equity
Called-up capital
The called-up capital of the company Petrol d.d., Ljubljana takes the form of share capital, the
amount of which is defined in the Company’s articles of association. It is registered with the
Court and paid up by owners. Dividends on ordinary shares are recognised as a liability in the
period in which they were approved by the General Meeting.
Legal reserves
Legal reserves comprise shares of profit from previous years that have been retained for a
dedicated purpose, mainly for offsetting eventual future losses.
Fair value reserve
The fair value reserve comprises the effect of the absorption of Instalacija d.o.o. in 2013, the
effects of valuing financial assets at fair value through other comprehensive income and
actuarial gains and losses related to the provisions for employee post-employment and other
long-term benefits.
Hedging reserve
The hedging reserve comprises the effect of changes in the fair value of derivative financial
instruments designated as effective in hedging against the variability in cash flows.
Reserves for own shares
If the Company acquires an ownership interest, the amount paid, including transaction costs
less tax, is deducted from total equity in the form of own shares until such shares are cancelled,
reissued or sold. If own shares are later sold or reissued, the consideration received is included
in capital surplus net of transaction costs and related tax effects.
f. Intangible assets
Goodwill
Goodwill arising on the acquisition of a subsidiary by the Company is determined by adopting
the value of goodwill that had been recognised at the Group level as a result of this business
combination. As the acquisition takes place, the difference between the net assets of the
acquired company plus goodwill recognised at the Group level and the investment in the
acquiree is determined. The difference is recognised in equity in such a way that equity
components which are not eliminated by the Group when consolidating the subsidiary but exist
in its records before the business combination takes place are recognised in other revenue
reserves, with the remaining difference being recognised in the fair value reserve.
Subsequent to initial recognition, the Company checks annually for factors which could
adversely affect the future cash flows of a cash-generating unit acquired in a business
combination. In the financial statements, a decrease in the value of a cash-generating unit is
recognised as the impairment of goodwill or of the assets of a cash-generating unit. It is
charged to current profit or loss.
Goodwill is measured at cost less any accumulated impairment losses.
Right to use concession infrastructure
The Company recognises an intangible non-current asset arising from a service concession
arrangement when it has a right to charge for usage of the concession infrastructure. An

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intangible non-current asset received as consideration for providing construction or upgrade
services in a service concession arrangement is measured at fair value upon initial recognition.
Subsequent to initial recognition, the intangible non-current asset is measured at cost less
accumulated amortisation and any accumulated impairment losses. The life of the right is
linked to the duration of the concession agreement.
Development of software solutions
Development of software solutions involves the design and production of new or substantially
improved software applications. The Company capitalises the costs of developing software
solutions to the extent that the following conditions are met: the costs can be measured reliably,
the development of a software solution is technically and commercially feasible, future
economic benefits are probable, the Company has sufficient resources to complete
development and intends to use the software solution. The capitalised costs of developing
software solutions include direct labour costs and other costs that are directly attributable to
preparing the asset for its intended use.
Other intangible assets
Other intangible fixed assets with finite useful lives are carried at cost less accumulated
amortisation and accumulated impairment losses. Cost includes expenditure that is directly
attributable to the acquisition of the assets. Borrowing costs directly attributable to the
acquisition or production of a qualifying asset are recognised as part of the cost of that asset.
Intangible fixed assets are subsequently measured using the cost model. In addition to
goodwill and rights arising from concessions for the construction of gas networks and
distribution of natural gas, which are described below, intangible fixed assets comprise mostly
software.
Subsequent expenditure
Subsequent expenditure relating to intangible assets is recognised in the carrying amount of
that asset if it is probable that the future economic benefits embodied within the part of this
asset will flow to the Company and the cost can be measured reliably. All other expenditure is
recognised in profit or loss as incurred.
Amortisation
Amortisation is calculated on a straight-line basis, taking into account the useful life of
intangible fixed assets. Amortisation begins when the asset is available for use.
The amortisation rates based on the estimated useful lives for the current and comparative
years are as follows:
Amortisation methods, useful lives and residual values are reviewed at each financial year-
end and adjusted if appropriate.
The impairment of assets is detailed in Point k2.
g. Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation
and accumulated impairment losses, with the exception of land, which is measured at cost less
accumulated impairment losses. Cost includes expenditure that is directly attributable to the
(in %)
2021
2020
Right to use concession infrastructure 2.00-20.00 2.00-20.00
Material and other rights 10.00-33.33 10.00-33.33
Contracts with customers 20.00 20.00
Other rights 3.33-20.00 3.33-20.00

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 222
acquisition of the assets. Parts of an item of property, plant and equipment having different
useful lives are accounted for as separate items of property, plant and equipment. Borrowing
costs directly attributable to the acquisition, construction or production of a qualifying asset are
recognised as part of the cost of that asset. Items of property, plant and equipment are
subsequently measured using the cost model.
Subsequent expenditure
Subsequent expenditure relating to property, plant and equipment is recognised in the carrying
amount of that asset if it is probable that the future economic benefits embodied within the part
of this asset will flow to the Company and the cost can be measured reliably. All other
expenditure (e.g. day-to-day servicing) is recognised in profit or loss as incurred.
Depreciation
Depreciation is calculated on a straight-line basis, taking into account the useful life of each
part (component) of an item of property, plant and equipment. Leased assets are depreciated
by taking into account the lease term and their useful lives. Land is not depreciated.
Depreciation begins when the asset is available for use. Construction work in progress is not
depreciated.
The depreciation rates based on the estimated useful lives for the current and comparative
periods are as follows:
Residual values and useful lives of an asset are reviewed annually and adjusted if necessary.
Gains and losses on disposal or elimination are determined by comparing the proceeds from
disposal with the carrying amount. Gains and losses on disposal are recognised in profit or
loss. Available-for-sale items of property, plant and equipment are presented separately from
other assets and are not depreciated in the year of the disposal.
The impairment of assets is detailed in Point k2.
Environmental fixed assets
Environmental tangible fixed assets acquired under the scheme for the creation and use of
revenue deferred for the purpose of environmental rehabilitation are carried and presented
separately. More information about deferred revenue relating to environmental fixed assets is
available in Point m.
h. Investment property
Investment property is property held by the Company either to earn rental income or for capital
appreciation or for both. It is measured at cost less accumulated depreciation and accumulated
(in %)
2021
2020
Buildings:
Buildings at service stations 2.50-10.00 2.50-10.00
Above-ground and underground reservoirs 2.85-50.00 2.85-50.00
Underground service paths at service stations 5.00-14.30 5.00-14.30
Other buildings 1.43-50.00 1.43-50.00
Equipment:
Mechanical and electronic equipment for maintenance of 10.00-25.00 10.00-25.00
Gas station equipment 3.33-20.00 3.33-20.00
Pumping equipment at service stations 5.00-25.00 5.00-25.00
Motor vehicles 10.00-25.00 10.00-25.00
Freight cars, rail tankers 25.00 25.00
Computer hardware 15.00-25.00 15.00-25.00
Office equipment, furniture 6.70-16.10 6.70-16.10
Small tools:
33.33 33.33
Environmental fixed assets:
4.00-25.00 4.00-25.00

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 223
impairment losses. Investment property is measured using the cost model. The depreciation
method and rates are the same as for other tangible assets. The impairment of assets is
detailed in Point k2.
The Company considers as investment property all property held by the Group that is fully or
partially leased out to third parties. The Group's consideration takes into account the intended
use of the property and the long-term goals pursued.
Property that is leased out as a whole is recognised as investment property based on separate
records. The parts of the property that are leased out and constitute an integral part of the
property used for the performance of core activities is recognised as investment property
based on the proportion of leased out surface area if exceeding 5 percent of the property value.
i. Leases
The Company holds various items of business property (land, business premises and
buildings), equipment and cars under a lease. Lease conditions are subject to negotiation on
a case-by-case basis and vary depending on the term and type of a lease. The Company
assesses at contract inception whether a contract is, or contains, a lease. That is the case if
the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.
The Company determines the lease term based on the noncancellable period of a lease, taking
into account the period covered by an option to extend the lease and the period covered by an
option to terminate the lease. The Company also assesses the probability of the above options.
The term of a lease depends on the type of the leased asset and range:
from 5 to 30 years for land,
from 5 to 20 years for business premises and buildings,
from 1 to 10 years for equipment,
from 3 to 6 years for cars.
The Company applies a single recognition and measurement approach for all leases, except
for short-term leases and leases of low-value assets. With regards to the leases of low-value
assets and short-term leases, the Company records lease payments as an expense for the
period to which a lease relates.
For all other leases, the Company has recognised lease liabilities and right-of-use assets.
The Company recognises right-of-use assets at the commencement date of the lease. Right-
of-use assets are measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised initially, initial direct costs incurred, and
lease payments made at or before the commencement date less any lease incentives
received.
The depreciation rates of right-of-use assets are as follows:
(in %)
2021
2020
Rights of use:
Lands 3.33-20.00 3.33-20.00
Buildings 5.00-20.00 5.00-20.00
Equipment 10.00-100.00 10.00-100.00
Motor vehicles 16.67-33.33 16.67-33.33

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 224
If ownership of the leased asset transfers to the Company at the end of the lease term or the
Company exercises a purchase option, depreciation is calculated using the estimated useful
life of the asset.
The right-of-use assets are also subject to impairment. Refer to the accounting policies in Point
k) Impairment of assets.
Lease liabilities are recognised at the present value of lease payments to be made over the
lease term, which corresponds to a discounted value of lease payments to be paid by the
Company over the lease term under the lease contract while also taking into account the
Group’s borrowing rate. The lease payments include fixed payments, less any lease incentives
receivables, and variable lease payments. The lease payments also include the exercise price
of a purchase option reasonably certain to be exercised by the Company and payments of
penalties for terminating the lease, if the lease term reflects the Group exercising the option to
terminate.
In calculating the present value of lease payments, the Company uses its incremental
borrowing rate at the lease commencement date because the interest rate implicit in the lease
is not readily determinable. After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the lease payments made. In
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a
change in the lease term, a change in the lease payments (e.g. changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a
change in the assessment of an option to purchase the underlying asset.
The Company has recognised its lease liabilities in item lease liabilities, as disclosed in Point
e.
At lease inception, lease liabilities correspond to the value of right-of-use assets and begin to
decrease as lease payments are made, with the value of right-of-use assets decreasing in line
with the depreciation charge over the lease term. Depreciation rates are estimated by taking
into account the term of a lease. Interest expense is charged to finance expenses for the
period.
Short-term leases and leases of low-value assets
The Company applies the exemption to short-term lease recognition (i.e. to leases that have
a lease term of 12 months or less and do not contain a purchase option). It also applies the
lease of low-value assets recognition exemption to leases of assets that are considered to be
low value. The Company recognises lease payments on short term leases and leases of low-
value assets as expense on a straight-line basis over the lease term.
j. Inventories
Inventories of merchandise and materials are measured at the lower of cost and net realisable
value.
The cost is made up of the purchase price, import duties and direct costs of purchase. Any
discounts are subtracted from the purchase price. Direct costs of purchase include
transportation costs, costs of loading, transhipment and unloading, transport insurance costs,
goods tracking costs, costs of agency arrangements, other similar costs incurred before initial
storage and borne by the purchaser.
Discounts on purchase prices include discounts indicated on invoices and subsequently
obtained discounts relating to a specific purchase.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 225
Net realisable value is the estimated selling price in the ordinary course of business, less the
estimated costs of completion and selling expenses. The Company checks the net realisable
value of inventories at the statement of financial position date. When this value is lower than
their carrying amount, inventories are impaired. Damaged, expired and unusable inventories
are written off regularly during the year on an item by item basis.
The moving average price method is used to assess the use of inventories.
k. Impairment
k1. Financial assets
In accordance with IFRS 9, the Company made a transition from the incurred loss model to
the expected loss model based on which the Company recognises not only incurred losses but
also expected future losses.
A financial asset is impaired if objective evidence indicates that one or more loss events have
occurred that had a negative effect on the estimated future cash flows of that asset and this
can be measured reliably.
Objective evidence that financial assets are impaired include default or delinquency by a
debtor, restructuring of an amount due to the Company for which the Company granted its
approval, indications that a debtor will enter bankruptcy, and the disappearance of an active
market for an instrument. For an investment in an equity security, a significant or prolonged
decline in its fair value below its cost is objective evidence of impairment.
Impairment of receivables and of loans granted
The Company considers evidence of impairment for receivables individually or collectively. All
significant receivables are assessed individually for specific impairment. If it is assessed that
the carrying amount of receivables exceeds their fair value, i.e. the collectible amount, the
receivables are impaired. Receivables for which it is assumed they will not be settled by the
original date of payment or up to their full amount are deemed doubtful; should court
proceedings be initiated, they are deemed disputed.
Impairment assessment is based on expected credit losses (ECLs) linked to a default on
receivables and loans that is possible within the next 12 months, unless there has been a
significant increase in credit risk since initial recognition. In such case, the impairment
assessment is determined based on the probability of default over the lifetime of the financial
asset (LECL). ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Company expects to receive. The
expected cash flows will include cash flows from the sale of collateral.
Impairments for ECLs are assessed in two stages. For credit exposures for which there has
not been a significant increase in credit risk since initial recognition, impairments for ECLs are
provided for credit losses that result from default events that are possible within the next 12
months. For those credit exposures for which there has been a significant increase in credit
risk since initial recognition, the Company recognises an allowance for losses expected over
the remaining life of the exposure, irrespective of the timing of the default.
Receivables that are not individually significant are collectively assessed for impairment by
grouping together receivables with similar risk characteristics. Receivables are grouped
together by age. In assessing collective impairment, the Company uses historical trends of the
probability of default, timing of recoveries and the amount of loss incurred, adjusted for
management’s judgement as to whether current economic and credit conditions are such that
the actual losses are likely to be greater or less than suggested by historical trends.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 226
The Company considers a financial asset to be in default when contractual payments are 60
days past due. However, in certain cases the Company may also consider the credit risk to be
higher when information indicates that the Company is unlikely to receive the outstanding
contractual amounts in full. A financial asset is written off when there is no reasonable
expectation of recovering contractual cash flows.
According to the categorisation of the statement of profit or loss laid down by the Companies
Act, the creation and reversal of loss allowances as well as written-off receivables
subsequently collected fall under operating revenue or expenses. The Company deems the
categorisation of these items as either finance income or expense to be more appropriate,
since operating receivables are carried as non-derivative financial assets.
The Company evaluates evidence about the impairment of loans individually for each
significant loan.
Impairment of financial assets at fair value through other comprehensive income
Impairment losses on financial assets at fair value through other comprehensive income are
recognised by transferring any cumulative loss that has been previously recognised in other
comprehensive income for the period and presented in the fair value reserve to profit or loss.
Any subsequent increase in the fair value of an impaired available for-sale equity security is
recognised in other comprehensive income for the period or in the fair value reserve.
Debt instruments at fair value through other comprehensive income consist solely of listed
sovereign bonds classified as low credit risk investments. Under the policy selected, the
Company measures expected credit losses on such instruments on a yearly basis. When there
has been a significant increase in credit risk since recognition, the Company recognises a loss
allowance based on the lifetime expected credit losses.
Impairment of investments in subsidiaries
Based on internal and external sources of information, the Company verifies on a regular basis
whether there is an indication that investments in subsidiaries may be impaired. If such
indications exist, the Company performs an impairment test based on an estimated value to
recognise the impairment of investments in subsidiaries. An impairment loss is measured as
the difference between the estimated value and the carrying amount of the investment. The
estimated values are calculated using valuation techniques and are based on the past
operations of subsidiaries and most recent available financial results, the management’s
expectations for the future and market assumptions.
k2. Non-financial assets
The Company reviews at each reporting date the carrying amounts of significant non-financial
assets to determine whether there is any indication of impairment. If any such indication exists,
then the asset’s recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use
and its fair value less costs to sell. In assessing the asset’s value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. For
the purpose of impairment testing, assets that cannot be tested individually are grouped
together into the smallest group of assets that generate cash inflows from continuing use and
are largely independent of the cash inflows of other assets or groups of assets (the “cash-
generating unit”). The impairment of an asset or a cash generating unit is recognised if its
carrying amount exceeds its recoverable amount. Impairment is recognised in profit or loss.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 227
Impairment losses recognised in prior periods are assessed at the end of the reporting period
for any indications that the loss has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed to the extent that the asset’s increased carrying
amount does not exceed the carrying amount that would have been determined net of
depreciation or amortisation if no impairment loss had been recognised in previous years.
In the case of points of sale, the Company identified the point-of-sale network per country as
a cash-generating unit and consequently also checks for indications of impairment at the level
of the point-of-sale network rather than at the level of individual points of sale. Based on an
analysis of interdependence of individual points of sale, the Company determined that
identifying the point-of-sale network in an individual country as a cash-generating unit was the
most appropriate approach.
l. Provisions
Provisions are recognised if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. The amount of the provisions is
determined as the present value of payments that the Company will be expected to make
based on the contracts it has concluded and applicable legislation. To determine the amount,
the Company relies on actuarial methods and on opinions provided by legal experts.
Significant provisions include:
Provisions for employee post-employment and other long-term benefits
Pursuant to the law, the collective agreement and internal rules, the Company is obligated to
pay its employees jubilee benefits and post-employment benefits on retirement, for which it
has established long-term provisions. Other obligations related to employee post-employment
benefits do not exist.
The provisions amount to estimated future payments for post-employment benefits on
retirement and jubilee benefits discounted to the end of the reporting period. The calculation
is made separately for each employee by taking into account the costs of post-employment
benefits on retirement and the costs of all expected jubilee benefits until retirement. The
calculation using the projected unit credit method is performed by a certified actuary.
Postemployment benefits on retirement and jubilee benefits are charged against the provisions
created.
Labour costs and costs of interest are recognised in the statement of profit or loss, whereas
the adjustment of postemployment benefits or unrealised actuarial gains or losses arising from
post-employment benefits are recognised in other comprehensive income.
Provisions for employee post-employment and other long-term benefits at third-party
managed service stations
The business cooperation agreements entered into by the Company with service station
managers stipulate that the rights of employees at third-party managed service stations to
jubilee benefits and post-employment benefits on retirement are equal to the rights of the
Company’s employees. The contractual obligation of the Company to reimburse the costs
arising from such rights to employees at third-party managed service stations represents the
basis for recognition of long-term provisions. The provisions amount to estimated future
payments for post-employment benefits on retirement and jubilee benefits discounted to the
end of the reporting period. The obligation is calculated separately for each employee at a
third-party managed service station by estimating the costs of post-employment benefits on

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 228
retirement and the costs of all expected jubilee benefits until retirement. The calculation using
the projected unit credit method is performed by a certified actuary. Reimbursed costs arising
from post-employment benefits on retirement and jubilee benefits are charged against the
provisions created.
Labour costs and costs of interest are recognised in the statement of profit or loss, whereas
the adjustment of postemployment benefits or unrealised actuarial gains or losses arising from
post-employment benefits are recognised in other comprehensive income.
Provisions for lawsuits
There are several lawsuits that have been fled against the Company, for which the potential
need for provisions is estimated on an ongoing basis. Provisions are recognised if, as a result
of a past event, the Company has a present legal or constructive obligation that can be
estimated reliably, and if it is probable that an outflow of economic benefits will be required to
settle the obligation. Contingent liabilities are not disclosed in the financial statements because
their actual existence will only be confirmed by the occurrence or non-occurrence of events in
unforeseeable future, which is beyond the Company’s control. The Company’s management
regularly checks if an outflow of economic benefits is probable to settle contingent liabilities. If
it becomes probable, the contingent liability is restated and provisions are created for it in the
financial statements as soon as the level of probability changes.
Provisions for onerous contracts
The Company creates provisions for onerous contracts when the market situation causes the
costs of meeting contractual obligations to exceed the expected economic benefit of long-term
contracts.
The provisions are determined based on estimated purchasing and selling price levels and
quantities, taking into account the costs to sell and general and administrative costs.
The Company determines the amount of the provisions based on estimated economic benefits
and the costs of services under long-term contracts for the leasing of capacities, taking into
account the utilisation rate of transmission capacities. The provisions created by the Company
for long-term contracts for the leasing of transmission and storage capacities cover the entire
contract period.
m. Long-term deferred revenue
Government and other subsidies received to cover costs are recognised as a decrease in
corresponding costs. Subsidies received as a compensation for assets are recognised strictly
as revenue over the periods in which the costs that they are intended to compensate are
incurred. The revenue, or the decrease in costs, is recognised when it can be reasonably
expected it will result in receipts or where it is sufficiently certain that no unfulfilled conditions
exist.
Long-term deferred revenue
Long-term deferred revenue comprises deferred revenue from funds granted for the
environmental rehabilitation of service stations, road tankers and storage facilities.
Environmental assets, presented as part of the Company’s property, plant and equipment
items, were approved by means of a decision of the Ministry of the Environment and Spatial
Planning as part of the ownership transformation of the company Petrol d.d., Ljubljana and
were recognised as such in the opening financial statements of Petrol d.d., Ljubljana as at 1
January 1993 that were prepared in accordance with the regulations governing the ownership
transformation of companies. Deferred revenue is restated under revenue in proportion to the

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 229
depreciation of environmental fixed assets. A portion of deferred revenue attributable to the
period under 12 months is moved to current deferred revenue.
n. Revenue from contracts with customers
Revenue from contracts with customers is recognised once control of goods or services is
transferred to a customer at an amount that reflects the consideration to which the Company
expects to be entitled in exchange for such goods or services. Revenue from contracts with
customers is recognised at the fair value of the consideration received or receivable, net of
returns and discounts, trade discounts and volume rebates. Revenue is recorded when the
customer obtains control of the goods or benefits from the services rendered.
Revenue is recognised as follows:
Sale of goods
A sale of goods is recognised when the Company delivers goods to a customer, the customer
accepts the goods, and the collectability of the related receivables is reasonably assured. As
of the sale, the Company no longer has control of the goods or services sold. Revenue from
the sale of goods does not include duties paid upon the purchase and duties paid upon the
sale of goods.
Gains on commodity forward contracts are also recognised as revenue from the sale of goods.
Sale of services
A sale of services is recognised in the accounting period in which the services are rendered,
by reference to the completion of the transaction assessed on the basis of the actual service
provided as a proportion of total services to be provided.
For long-term projects, the revenue from services rendered is recognised based on the stage
of completion as at the balance sheet date. Under this method, the revenue is recognised in
the accounting period in which the services are rendered.
Loyalty scheme
The Company offers Petrol Club card holders certain discounts on their purchases at service
stations or on the supply of gas and electricity, based on the points collected from their previous
purchases. As some of the discounts can be used in the following year, the Company defers
them to match its revenue with the expenses incurred to generate the revenue.
Instalment sales
In instalment sales, the Company recognises separately revenue from the sale of goods and
finance income deferred over the entire contract term. Finance income to total purchase price
ratio is assessed based on discounted future cash flows flowing to the Company based on the
sale.
Sale in the name and for the account of third parties
The Group has entered into contracts with customers for the sale of merchandise in the name
and on behalf of suppliers. Based on these contracts, the Company delivers goods to
customers, receiving in exchange the difference between the final selling price and the cost
negotiated in advance. The difference is recognised as sales revenue.
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to
the customer. The Company’s contract assets include accrued revenue from goods and
services delivered to customers.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 230
Trade receivables
A receivable is the Company’s right to an amount of consideration that is unconditional (i.e.
only the passage of time is required before payment of the consideration is due). See
accounting policies on the recognition of financial assets in the section Financial assets.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the
Company has received consideration. The Company’s contract liabilities include the liabilities
from collaterals received, the loyalty scheme and granted discounts. Contract liabilities are
recognised as revenue when the Company satisfies its performance obligation.
Variable consideration
If the consideration in a contract includes a variable amount, the Company estimates the
amount of consideration to which it will be entitled in exchange for transferring the goods to
the customer. The variable consideration estimated by the Company at contract inception as
constrained remains constrained until it is highly probable that a significant revenue reversal
in the amount of revenue recognised will not occur. Variable consideration refers to volume
rebates granted to customers.
The Company provides retrospective volume rebates to certain customers once the quantity
of products purchased during the period exceeds a threshold specified in the contract. Rebates
are offset against amounts payable by the customer. To estimate the variable consideration
for the expected future rebates, the Company applies the most likely amount method for
contracts with the expected value method. The selected method that best predicts the amount
of variable consideration is primarily driven by the number of volume thresholds contained in
the contract. The Company then applies the requirements on constraining estimates of variable
consideration and recognises a refund liability for the expected future rebates.
o. Finance income and expenses
Finance income comprises interest income on financial assets, gains on the disposal of
financial assets at fair value through other comprehensive income, written-off or impaired
receivables subsequently collected, changes in the fair value of financial assets at fair value
through profit or loss, foreign exchange gains and gains on hedging instruments that are
recognised in profit or loss. Interest income is recognised as it accrues using the effective
interest method.
Dividend income is recognised in the Company’s statement of profit or loss on the date that a
shareholder’s right to receive payment is established. If the fair value of the net assets acquired
in a merger by absorption exceeds the carrying amount of the investment in the absorbed
company, the difference is carried as finance income for the period in which the absorption
took place.
Finance expenses comprise borrowing costs (unless capitalised), foreign exchange losses,
changes in the fair value of financial assets at fair value through profit or loss, impairment
losses recognised on financial assets, loss allowances for receivables and losses on hedging
instruments that are recognised in profit or loss. Borrowing costs are recognised in profit or
loss using the effective interest method.
p. Taxes
Taxes comprise current tax and deferred tax liabilities. Taxes are recognised in profit or loss
except to the extent that they relate to business combinations or items recognised directly in
other comprehensive income.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 231
Current tax liabilities are based on the taxable profit for the year. Taxable profit differs from the
net profit reported in the statement of profit or loss as it excludes revenue and expense items
taxable or deductible in other years and other items that are never subject to taxation or
deduction. The Company’s current tax liabilities are calculated using the tax rates effective on
the reporting date.
Deferred tax is accounted for in its entirety using the statement of financial position liability
method for temporary differences between the tax base of assets and liabilities and their
carrying amounts in the Company’s separate financial statements. Deferred tax is determined
using the tax rates (and laws) that are expected to apply when a deferred tax asset is realised
or a deferred tax liability is settled.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will
be available against which they can be utilised in the future.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to
set off current tax assets against current corporate income tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation authority.
r. Determination of fair value
A number of the Company’s accounting policies require the determination of the fair value of
both financial and non-financial assets and liabilities, either for the measurement of individual
assets (measurement method or business combination) or for additional fair value disclosure.
Fair value is the amount for which an asset could be sold or a liability exchanged between
knowledgeable, willing parties in an arm’s length transaction. The Company determines the
fair value of financial instruments by taking into account the following fair value hierarchy:
Level 1 comprises quoted prices in active markets for identical assets or liabilities;
Level 2 comprises values other than quoted prices included within Level 1 that are
observable either directly (prices for identical or similar assets or liabilities in markets that
are less active or inactive) or indirectly (e.g. values derived from quoted prices in an active
market, based on interest rates and yield curves, implied volatilities and credit spreads);
Level 3 comprises inputs for the asset or liability that are not based on observable market
data. Unobservable inputs need to reflect the assumptions that market participants would
use when determining a price for the asset or liability, including risk assumptions.
The Company uses quoted prices as the basis for the fair value of financial instruments. If a
financial instrument is not quoted on a regulated market or if the market is considered inactive,
the Company uses Level 2 and Level 3 inputs to determine the fair value of a financial
instrument. Where applicable, further information about the assumptions made when
determining fair values is disclosed in the notes specific to that asset or liability of the
Company.
The methods of determining the fair values of individual groups of assets for measurement or
reporting purposes are described below.
Intangible assets
The fair value of intangible assets is based on the discounted cash flows that are
expected to be derived from the use and eventual sale of the assets.
Property, plant and equipment
The fair value of property, plant and equipment recognised as a result of business
combinations is the same as their market value. The market value of property is the estimated

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 232
amount for which a property could be sold on the date of valuation and after proper marketing.
The market value of equipment is based on the market prices for similar items.
Investment property
The value of investment property is assessed by considering the aggregate of the estimated
cash flows expected to be received from renting out the property. A yield that reflects the
specific risks is included in the property valuation based on the discounted net annual cash
flows.
Inventories
The fair value of inventories acquired in business combinations is determined based on their
expected selling price in the ordinary course of business less the estimated costs of sale.
Financial assets at fair value through profit or loss and financial assets at fair value
through other comprehensive income
The fair value of financial assets at fair value through profit or loss and financial assets at fair
value through other comprehensive income is determined by reference to the above fair value
hierarchy for financial instruments.
Investments in associates and jointly controlled entities
The fair value of investments in associates and jointly controlled entities is determined by
reference to the above fair value hierarchy for financial instruments. The methods of
determining the value of and input assumptions for each investment are specifically presented
in the disclosures.
Receivables and loans granted
The fair value of the receivables and loans is calculated as the present value of future cash
flows, discounted at the market rate of interest at the end of the reporting period. The estimate
takes into account the credit risk associated with these financial assets.
Derivative financial instruments
The fair value of forward contracts equals their market price at the reporting date.
The fair value of interest rate swaps at the reporting date is assessed by discounting future
cash flows arising from the variable interest rate (interest received from a swap) and the
fixed interest rate (interest paid under a swap).
The fair value of commodity derivatives equals their market price as at the reporting date,
which is determined using publicly available information about the market value of
commodity derivatives as at the date of the statement of financial position as issued by
relevant institutions.
Non-derivative financial liabilities
For reporting purposes, fair value is calculated using the present value of future payments of
the principal and interest, discounted at the market rate of interest at the end of the reporting
period.
s. Earnings per share
The Company presents basic and diluted earnings per share for its ordinary shares. The basic
earnings per share are calculated by dividing the profit or loss attributable to ordinary
shareholders by the weighted average number of ordinary shares during the period. Diluted
earnings per share are calculated by adjusting the profit or loss attributable to ordinary
shareholders and the weighted average number of ordinary shares during the period for the
effects of all potential ordinary shares, which comprise convertible bonds and share options
granted to employees. Because the Company has no convertible bonds or share options

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 233
granted to employees, its basic earnings per share are the same as its diluted earnings per
share.
t. Statement of cash flows
The section of the statement of cash flows referring to operating activities has been prepared
using the indirect method based on data derived from the statement of financial position as at
31 December 2020 and 31 December 2021 and data derived from the statement of profit or
loss for the period January to December 2021. Default interest paid and received in connection
with operating receivables is allocated to cash flows from operating activities. Interest on loans,
and dividends paid and received are allocated to cash flows from financing activities.
New standards and interpretations relevant for the Group and the Company, but not yet
effective
The standards and interpretations disclosed below have been issued but were not yet effective
up to the date of issuance of the consolidated/separate financial statements. The
Group/Company intends to adopt these standards and interpretations, if applicable, in the
preparation of its financial statements when they become effective. The Group/Company did
not adopt any of the standards early.
Amendment in the IFRS 10 Consolidated Financial Statements and the IAS 28
Investments in Associates and Joint Ventures: Sale or Contribution of Assets between
an Investor and its Associate or Joint Venture
The amendments address an acknowledged inconsistency between the requirements in the
IFRS 10 and those in the IAS 28, in dealing with the sale or contribution of assets between an
investor and its associate or joint venture. The main consequence of the amendments is that
a full gain or loss is recognised when a transaction involves a business (whether it is housed
in a subsidiary or not). A partial gain or loss is recognised when a transaction involves assets
that do not constitute a business, even if these assets are housed in a subsidiary. In December
2015 the IASB postponed the effective date of this amendment indefinitely pending the
outcome of its research project on the equity method of accounting. The amendments have
not yet been endorsed by the EU.
The Group/Company is currently assessing the impact of the amendments and plans to adopt
them on the required effective date.
IAS 1 Presentation of the Financial Statements: Classification of Liabilities as Current
or Non-current (Amendments)
The amendments were initially effective for annual reporting periods beginning on or after 1
January 2022 with earlier application permitted. However, in response to the COVID-19
pandemic, the Board has deferred the effective date by one year, i.e. 1 January 2023, to
provide companies with more time to implement any classification changes resulting from the
amendments. The amendments aim to promote consistency in applying the requirements by
helping companies determine whether, in the statement of financial position, debt and other
liabilities with an uncertain settlement date should be classified as current or non-current. The
amendments affect the presentation of liabilities in the statement of financial position and do
not change the existing requirements around the measurement or timing of the recognition of
any asset, liability, income or expenses, nor the information that entities disclose about those
items. Also, the amendments clarify the classification requirements for debt that may be settled
by the company issuing own equity instruments.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 234
In November 2021, the Board issued an exposure draft (ED), which clarifies how to treat
liabilities that are subject to covenants to be complied with, at a date subsequent to the
reporting period.
In particular, the Board proposes narrow scope amendments to the IAS 1 that effectively
reverse the 2020 amendments requiring entities to classify as current, liabilities subject to
covenants that must only be complied with within the next twelve months after the reporting
period, if those covenants are not met at the end of the reporting period.
Instead, the proposals would require entities to present separately all non-current liabilities
subject to covenants to be complied with only within twelve months after the reporting period.
Furthermore, if entities do not comply with such future covenants at the end of the reporting
period, additional disclosures will be required.
The proposals will become effective for annual reporting periods beginning on or after 1
January 2024 and will need to be applied retrospectively in accordance with the IAS 8, with
earlier application permitted. The Board has also proposed delaying the effective date of the
2020 amendments accordingly, so that entities will not be required to change current practice
before the proposed amendments come into effect. These Amendments, including ED
proposals, have not yet been endorsed by the EU.
The Group/Company is currently assessing the impact of the amendments and plans to adopt
them on the required effective date.
IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37
Provisions, Contingent Liabilities and Contingent Assets, as well as Annual
Improvements 2018-2020 (Amendments)
The amendments are effective for annual periods beginning on or after 1 January 2022 with
earlier application permitted. The IASB has issued narrow-scope amendments to the IFRS
Standards as follows:
The IFRS 3 Business Combinations (Amendments) update a reference in the IFRS
3 to the Conceptual Framework for Financial Reporting without changing the
accounting requirements for business combinations.
The IAS 16 Property, Plant and Equipment (Amendments) prohibit a company from
deducting from the cost of property, plant and equipment amounts received from selling
items produced while the company is preparing the asset for its intended use. Instead,
a company will recognise such sales proceeds and related costs in profit or loss.
The IAS 37 Provisions, Contingent Liabilities and Contingent Assets
(Amendments) specify which costs a company includes in determining the cost of
fulfilling a contract for the purpose of assessing whether a contract is onerous.
Annual Improvements 2018-2020 make minor amendments to the IFRS 1 First-time
Adoption of International Financial Reporting Standards, the IFRS 9 Financial
Instruments, the IAS 41 Agriculture and the Illustrative Examples accompanying the
IFRS 16 Leases.
These amendments are not expected to have any impact on the Group’s consolidated financial
statements or the Company’s separate financial statements.
IFRS 16 Leases-COVID-19 Related Rent Concessions beyond 30 June 2021
(Amendment)
The Amendment applies to annual reporting periods beginning on or after 1 April 2021, with
earlier application permitted, including in financial statements not yet authorised for issue at
the date the amendment is issued. In March 2021, the Board amended the conditions of the
practical expedient in the IFRS 16 that provides relief to lessees from applying the IFRS 16

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 235
guidance on lease modifications to rent concessions arising as a direct consequence of the
COVID-19 pandemic. Following the amendment, the practical expedient now applies to rent
concessions for which any reduction in lease payments affects only payments originally due
on or before 30 June 2022, provided the other conditions for applying the practical expedient
are met.
These amendments are not expected to have any impact on the Group’s consolidated financial
statements or the Company’s separate financial statements.
IAS 1 Presentation of the Financial Statements and IFRS Practice Statement 2:
Disclosure of Accounting policies (Amendments)
The amendments are effective for annual periods beginning on or after 1 January 2023 with
earlier application permitted. The amendments provide guidance on the application of
materiality judgements to accounting policy disclosures. In particular, the amendments to the
IAS 1 replace the requirement to disclose ‘significant’ accounting policies with a requirement
to disclose ‘material’ accounting policies. Also, guidance and illustrative examples are added
in the Practice Statement to assist in the application of the materiality concept when making
judgements about accounting policy disclosures. The amendments have not yet been
endorsed by the EU.
The Group/Company is currently assessing the impact of the amendments and plans to adopt
them on the required effective date.
IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of
Accounting Estimates (Amendments)
The amendments become effective for annual reporting periods beginning on or after 1
January 2023 with earlier application permitted and apply to changes in accounting policies
and changes in accounting estimates that occur on or after the start of that period. The
amendments introduce a new definition of accounting estimates, defined as monetary amounts
in financial statements that are subject to measurement uncertainty. Also, the amendments
clarify what changes in accounting estimates are and how these differ from changes in
accounting policies and the correction of errors. The amendments have not yet been endorsed
by the EU.
The Group/Company is currently assessing the impact of the amendments and plans to adopt
them on the required effective date.
IAS 12 Income taxes: Deferred Tax related to Assets and Liabilities arising from a Single
Transaction (Amendments)
The amendments are effective for annual periods beginning on or after 1 January 2023 with
earlier application permitted. In May 2021, the Board issued amendments to the IAS 12, which
narrow the scope of the initial recognition exception under the IAS 12 and specify how
companies should account for deferred tax on transactions such as leases and
decommissioning obligations. Under the amendments, the initial recognition exception does
not apply to transactions that, on initial recognition, give rise to equal taxable and deductible
temporary differences. It only applies if the recognition of a lease asset and lease liability (or
decommissioning liability and decommissioning asset component) give rise to taxable and
deductible temporary differences that are not equal. The amendments have not yet been
endorsed by the EU.
The Group/Company is currently assessing the impact of the amendments and plans to adopt
them on the required effective date.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 236
5. Segment reporting
In view of the fact that the financial report consists of the financial statements and
accompanying notes of both the Group and the Company, only the Group’s operating
segments are disclosed.
An operating segment is a component of the Group that engages in business activities from
which it earns revenues and incurs expenses that relate to transactions with any of the Group’s
other components. The results of operating segments are reviewed regularly by the
management to make decisions about resources to be allocated to a segment and assess the
Group's performance.
The management monitors information on two levels: on the micro-level, in which case
individual units are monitored, and on the macro level, where only certain key information is
monitored that can be used to make comparisons with similar companies in Europe. Given the
substantial amount of information and their sensitivity on the micro-level, the Group only
discloses macro-level information in the annual report.
The Group/Company uses the following segments in the preparation and presentation of the
financial statements:
sales,
energy and environmental solutions, and production.
Sales consist of:
sales of petroleum products,
sales of merchandise and services,
sales of liquefied petroleum gas,
electricity sales and trading,
sales of natural gas.
Energy and environmental solutions and production consist of:
energy and environmental solutions,
heat systems,
distribution of natural gas,
production of renewable electricity,
mobility.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 237
The Group’s operating segments in 2020:
* Interest income and expense are estimated based on a segment’s share of investments and assets in total investments and
assets.
The Group’s operating segments in 2021:
* Interest income and expense are estimated based on a segment’s share of investments and assets in total investments and
assets.
(in EUR)
Sales
Energy a nd
environmental
syste m s a nd
production Total
Statement of
profit or loss/
Statement of
financial
position
Sales revenue
3,356,224,733
70,273,776
3,426,498,509
Revenue from subsidiaries
(346,974,551)
(91,351)
(347,065,902)
Sales revenue
3,009,250,182
70,182,425
3,079,432,607
3,079,432,607
Net profit for the year
70,098,690
2,231,352
72,330,042
72,330,042
Interest income*
2,187,715
967,651
3,155,366
3,155,366
Interest expense*
(5,887,101)
(2,603,932)
(8,491,033)
(8,491,033)
Depreciation of property, plant and equipment, depreciation
of rifht-of-use assets, depreciation of investment property
and amortisation of intangible assets
(55,370,129) (19,624,038) (74,994,167) (74,994,167)
Share of profit or loss of equity accounted investees
-
3,508,790
3,508,790
3,508,790
Total assets
1,456,348,829
335,729,622
1,792,078,451
1,792,078,451
Equity accounted investees
-
56,515,407
56,515,407
56,515,407
Property, plant and equipment, right-of-use assets,
investment property and intangible assets
721,961,522 262,816,348 984,777,870 984,777,870
Other assets
734,387,307
16,397,867
750,785,174
750,785,174
Current and non-current operating and financial liabilities and
lease liabilities
694,504,472 160,102,936 854,607,408 854,607,408
(in EUR)
Sales
Energy a nd
environmental
syste m s a nd
production Total
Statement of
profit or loss/
Statement of
financial
position
Sales revenue
5,530,272,304
80,394,975
5,610,667,279
Revenue from subsidiaries
(650,477,568)
(63,746)
(650,541,314)
Sales revenue
4,879,794,736
80,331,229
4,960,125,965
4,960,125,965
Net profit for the year
115,740,186
8,741,175
124,481,361
124,481,361
Interest income*
7,564,188
2,501,647
10,065,835
10,065,835
Interest expense*
(6,905,827)
(2,283,912)
(9,189,739)
(9,189,739)
Depreciation of property, plant and equipment, depreciation
of rifht-of-use assets, depreciation of investment property
and amortisation of intangible assets
(58,549,723) (20,542,035) (79,091,758) (79,091,758)
Share of profit or loss of equity accounted investees
- 2,583,771 2,583,771 2,583,771
Total assets
2,046,801,533
336,649,898
2,383,451,431
2,383,451,431
Equity accounted investees
-
55,874,127
55,874,127
55,874,127
Property, plant and equipment, right-of-use assets,
investment property and intangible assets
967,647,334 264,148,527 1,231,795,861 1,231,795,861
Other assets
1,079,154,199
16,627,244
1,095,781,443
1,095,781,443
Current and non-current operating and financial liabilities and
lease liabilities
1,118,657,240 183,992,360 1,302,649,600 1,302,649,600

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 238
Additional information about geographic areas in which the Group operates:
For the purpose of presenting geographic areas, revenue generated in a particular area is
determined based on the geographic location of customers, whereas the assets are
determined based on the geographic location of assets.
Unallocated assets refer mainly to deferred tax assets.
6. Notes to individual items in the financial statements
6.1 Business combinations
a. Acquisitions
Crodux derivati dva d.o.o.
Under a contract for the sale and purchase of interests, which was concluded in 2021, following
the fulfilment of the suspensive conditions, the Group acquired a 100-percent interest in
Crodux derivati dva d.o.o., which is engaged in the sale of petroleum products in retail and
wholesale on the Croatian market, in the sale of trade goods and services and in the catering
offer.
The conditions for recognising assets in the Group's financial statements and for managing
them were met on 6 October 2021.
In the Company's statement of financial position, Crodux derivati dva d.o.o was treated as a
subsidiary as at 31 December 2021. The company's financial statements are included in the
consolidated financial statements of the Group.
Goodwill arises mainly from the retail distribution network. Due to the fact that the business
combination occurred in the last quarter of the year, the fair value of the assets could not be
determined with certainty. Therefore, the acquired assets were recognised at provisional
values and will be recognised retrospectively in 2022 on the basis of appropriate valuations,
which will also affect the value of goodwill (IFRS 3.45). The Group recognised goodwill in the
amount of EUR 148,894,359. The testing goodwill for impairment is disclosed in Note 6.15.
In the three months since the acquisition of the company, the Group generated revenues in
the amount of EUR 174,491,268, while the net profit was negative in the amount of EUR
4,246,024. If control had been obtained on 1 January 2021, the Group's revenue would have
been EUR 439,631,062 higher, its net profit EUR 16,220,825 higher and its EBITDA would
have been EUR 37,044,553 higher.
(in EUR)
2021
2020
2021
2020
2021
2020
Slovenia
2,318,794,060
1,463,688,924
1,385,093,355
1,176,860,845
37,883,262
50,864,036
Croatia
892,630,457
472,415,913
708,835,851
343,247,592
188,763,187
29,129,764
Austria
189,705,906
210,144,985
2,521,013
5,082,509
-
-
Bosnia and Herzegovina
157,179,446
101,021,218
84,410,027
76,402,639
158,544
137,349
Serbia
126,953,533
72,200,684
97,542,278
87,005,571
6,256,121
4,987,574
Montenegro
42,138,531
26,223,964
34,663,240
31,734,965
142,741
284,712
Romania
26,828,155
97,400,461
474,400
487,772
-
-
Macedonia
7,185,333
13,379,662
737,181
2,891,615
-
-
Other countries
1,198,710,544
622,956,796
1,920,285
1,943,504
-
-
4,960,125,965
3,079,432,607
2,316,197,630
1,725,657,012
233,203,855
85,403,435
Jointly controlled entities
704,501
562,016
Associates
55,169,626
55,953,391
Unallocated assets
11,379,674
9,906,032
Total assets
2,383,451,431
1,792,078,451
Sales revenue
Total assets
Net inve stments

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 239
The statement of the acquired assets as at the day when the Group acquired controlling
influence is presented in the table:
E 3, d.o.o.
Under a contract for the sale and purchase of interests, which was concluded in February
2020, the Petrol Group acquired a 100-percent interest in E 3, d.o.o. from Elektro Primorska,
d.d.
The conditions for recognising assets in the Group's financial statements and for managing
them were met on 5 January 2021.
In the Company's statement of financial position, E 3, d.o.o. was treated as a subsidiary as at
31 December 2021. The company's financial statements are included in the consolidated
financial statements of the Group.
Since the acquisition of the company, the Group generated revenues in 2021 in the amount of
EUR 125,078,162, while the net profit was positive in the amount of EUR 579,292.
On acquiring the controlling influence over the company, the fair value of the acquired net
assets was reviewed, based on which the Group was able to recognise the fair value of the
assets in its consolidated financial statements. The fair value of assets was estimated on the
basis of the return-based method using the discounted cash flow method.
(in EUR)
Provisional fair
value
Carrying amount
Cash and cash equivalents
9,891,052
9,891,052
Intangible assets
5,328,030
5,328,030
Right-of-use assets
47,507,231
47,507,231
Property, plant and equipment
67,907,084
67,907,084
Investment property
120,243
120,243
Deferred tax assets
571,383
571,383
Inventories
21,581,519
21,581,519
Contract assets
128,366
128,366
Financial receivables
80,520,260
80,520,260
Operating receivables
51,589,121
51,589,121
Prepayments and other assets
822,789
822,789
Assets
285,967,078
285,967,078
Other provisions
33,049
33,049
Financial liabilities
106,555,345
106,555,345
Lease liabilities
49,056,309
49,056,309
Operating liabilities
79,154,648
79,154,648
Corporate income tax liabilities
2,008,426
2,008,426
Contract liabilities
1,055,690
1,055,690
Other liabilities
5,297,970
5,297,970
Liabilities
243,161,437
243,161,437
Net assets upon acquisition
42,805,641
42,805,641
Amount paid
191,700,000
-
Goodwill
148,894,359
-
Amount paid
191,700,000
-
Cash and cash equivalents
9,891,052
-
Net payment
181,808,948
-

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 240
The statement of the acquired assets as at the day when the Group acquired controlling
influence is presented in the table:
The Group recognised negative goodwill in the income statement for 2021 among other
finance income.
b. Business combinations in 2020
In 2020, Petrol d.d., Ljubljana acquired the company Petrol-OTI-Terminal L.L.C.
Petrol-OTI-Terminal L.L.C.
Under a contract for the sale and purchase of interests, which was concluded in December
2020, the Petrol Group acquired a 100-percent interest in Petrol-OTI-Terminal L.L.C. from the
jointly controlled entity Petrol OTI Slovenija L.L.C. Under the same contract for the sale and
purchase of interests, the Petrol Group sold a 51-percent interest in the jointly controlled entity
Petrol OTI Slovenija L.L.C. to the remaining company member of the jointly controlled entity
Petrol OTI Slovenija L.L.C. The conditions for recognising the assets in the Group's financial
statements and for their control were fulfilled on 31 December 2020.
In the Company's statement of financial position and the Group's consolidated statement of
financial position, Petrol-OTI-Terminal L.L.C. was treated as a subsidiary as at 31 December
2020. The financial statements of Petrol-OTI-Terminal L.L.C. are included in the Group's
consolidated financial statements.
On acquiring the controlling influence over Petrol-OTI-Terminal L.L.C., the fair value of the
acquired net assets was reviewed, based on which the Group was able to recognise the fair
value of the assets in its consolidated financial statements. The fair value of the assets was
assessed based on the cost approach using the net asset value method. Fixed assets relate
(in EUR)
Fair value Carrying amount
Cash and cash equivalents
792,219
792,219
Intangible assets
3,873,893
464,724
Right-of-use assets
119,368
119,368
Property, plant and equipment
5,095,587
7,741,407
Investments in associates
894,000
483,993
Operating receivables
27,072,213
27,072,213
Contract assets
1,694,130
1,694,130
Deferred tax assets
324,476
547,413
Corporate income tax assets
66,517
66,517
Prepayments and other assets
208,361
208,361
Assets
40,140,764
39,190,345
Provisions for employee post-employment and other long-
term benefits
372,406 372,406
Long-term deferred revenue
598,039
598,039
Financial liabilities
3,232,001
3,232,001
Lease liabilities
120,462
120,462
Operating liabilities
18,341,741
18,341,741
Contract liabilities
726,625
726,625
Other liabilities
619,764
619,764
Liabilities
24,011,038
24,011,038
Net assets upon acquisition
16,129,726
15,179,307
Amount paid
14,950,000
-
Negative goodwill
1,179,726
-
Amount paid
14,950,000
-
Cash and cash equivalents
792,219
-
Net payment
14,157,781
-

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 241
to an assessed value of a business complex that actually represents a petroleum product
storage facility.
The acquisition of the assets of Petrol-OTI-Terminal L.L.C. did not result in additional revenue
for the Group. The company was dormant in 2020. If control had been obtained on 1 January
2020, the Group's net profit would have been lower by EUR 19,278.
The statement of the acquired assets as at the day when the Group acquired controlling
influence is presented in the table:
c. Definitive allocation of goodwill in 2020 in the subsidiaries acquired in 2019
Atet d.o.o.
Under a contract for the sale and purchase of interests, which was concluded in July 2019,
Petrol d.d., Ljubljana acquired a 76-percent interest in Atet, podjetje za izposojo avtomobilov,
d.o.o. The company is engaged in car rental activity. The conditions for exercising control over
the company were fulfilled on 16 December 2019.
In the Company's statement of financial position and the Group's consolidated statement of
financial position, Atet d.o.o. was treated as a subsidiary as at 31 December 2019. The
financial statements of Atet d.o.o. are included in the Group's consolidated financial
statements.
Because the business combination took place at the end of 2019 and the fair value of the
assets as at 31 December 2019 could not be determined with certainty, the acquired assets
as at 31 December 2019 were recognised at provisional values.
In 2020, the fair value of the acquired net assets was assessed, based on which the Group
was able to recognise the fair value of the net assets in its consolidated financial statements,
thus definitively allocating goodwill, which had been recognised only temporarily in 2019. The
fair value of the property was assessed using the income capitalisation method whereas the
fair value of the equipment was assessed using the replacement cost method.
(in EUR)
Fair value Carrying amount
Cash and cash equivalents
1,711
1,711
Property, plant and equipment
1,910,082
8,663,712
Operating receivables
5,936
5,936
Assets
1,917,729
8,671,359
Financial liabilities
54,000
54,000
Operating liabilities
58,729
58,729
Liabilities
112,729
112,729
Net assets upon acquisition
1,805,000
8,558,630
Amount paid
1,805,000
-
Goodwill
-
-
Amount paid
1,805,000
-
Cash and cash equivalents
1,711
-
Net payment
1,803,289
-

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 242
The company's statement of financial position as at the day the Company acquired controlling
influence is as follows:
Goodwill was allocated to property, plant and equipment.
6.2 Changes within the Group
In 2021, Petrol d.d.:
Acquired a 100-percent interest in E 3, d.o.o. The impact on the Group's financial
statements is presented in Note 6.1.
With the acquisition of E 3, d.o.o. indirectly acquired a 47.27-percent interest in Knešca
d.o.o. The impact on the Group's financial statements is presented in Note 6.21.
Sold the associate Ivicom Energy d.o.o. The impact on the Group's financial statements is
presented in Note 6.21.
Acquired a 100-percent interest in Crodux derivati dva d.o.o. The impact on the Group's
financial statements is presented in Note 6.1.
Increased the capital of Vjetroelektrana Ljubač d.o.o., with the Group's holding remaining
unchanged. The impact on the financial statements is presented in Note 6.19.
Liquidated Petrol Trade Slovenia L.L.C. and Petrol Praha CZ S.R.O. The impact on the
Group's financial statements is presented in Note 6.19.
Sold a 50-percent interest in the jointly controlled entity Vjetroelektrana Dazlina d.o.o.
In 2021, Petrol d.o.o. Beograd established three subsidiaries Petrol Lumennis ZA JO d.o.o.
Beograd, Petrol Lumennis ŠI JO d.o.o. Beograd and Petrol KU 2021 d.o.o. Beograd that
operate in the segment of energy and environmental solutions. Petrol d.o.o. Beograd is the
sole owner of the two companies.
(in EUR)
Restated fair
value
Provisional fair
value
Carrying amount
Cash and cash equivalents
1,014,069
1,014,069
1,014,069
Property, plant and equipment
1,442,041
1,144,326
1,144,326
Operating receivables
265,299
265,299
265,299
Corporate income tax assets
39,897
39,897
39,897
Prepayments and other assets
15,559
15,559
15,559
Assets
2,776,865
2,479,150
2,479,150
Financial liabilities
303,080
303,080
303,080
Operating liabilities
290,422
290,422
290,422
Deferred tax liabilities
56,566
-
-
Corporate income tax liabilities
6,651
6,651
6,651
Contract liabilities
2,083
2,083
2,083
Other liabilities
400
400
400
Liabilities
659,202
602,636
602,636
Net assets upon acquisition
2,117,663
1,876,514
1,876,514
Net assets upon acquisition of majority interest (76%)
1,609,424
1,426,151
1,426,151
Amount paid
4,044,396
4,044,396
-
Goodwill
2,434,972
2,618,245
-
Amount paid
4,044,396
4,044,396
-
Cash and cash equivalents
1,014,069
1,014,069
-
Net payment
3,030,327
3,030,327
-

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 243
In 2020 Petrol d.d.:
Acquired a 100-percent interest in Petrol-OTI-Terminal L.L.C. The impact on the Group's
financial statements is presented in Note 6.1.
Acquired a 49-percent interest in Petrol LPG d.o.o. Beograd, becoming the sole owner of
the company. The impact on the financial statements is presented in Note 6.19.
Acquired an additional interest in MBills d.o.o., becoming a 100-percent owner of the
company. The impact on the financial statements is presented in Note 6.19.
Increased the capital of STH Energy d.o.o., with the Group's holding remaining unchanged.
The impact on the financial statements is presented in Note 6.19.
Disposed of its 51-percent interest in Petrol OTI Slovenija L.L.C. The impact on the Group's
financial statements is presented in Note 6.1.
In 2020 Petrol d.o.o. Beograd established subsidiaries Petrol Lumennis PB d.o.o. Beograd and
Petrol Lumennis VS d.o.o. Beograd that operate in the segment of energy and environmental
solutions. Petrol d.o.o. Beograd is the sole owner of the two companies.
6.3 Revenue
Sales revenue by type of goods
Sales revenue by sales market
Sales revenue by operating segment
The Group's/Company's sales revenue includes rental income. In 2021, the Group generated
EUR 4,083,960 in rental income and the Company EUR 3,068,650.
(in EUR)
2021
2020
2021
2020
Revenue from the sale of merchandise
4,852,186,450
2,981,937,390
3,467,445,255
2,258,375,265
Revenue from the sale of services
100,871,606
90,297,346
89,542,981
79,210,092
Revenue from the sale of products
7,067,909
7,197,871
31,554
1,038,771
Total revenue
4,960,125,965
3,079,432,607
3,557,019,790
2,338,624,128
The Petrol Group
Petrol d.d.
(in EUR)
2021
2020
2021
2020
Domestic sales revenue
2,318,794,060
1,463,688,924
2,307,448,117
1,180,983,411
EU market sales revenue
2,040,354,381
1,268,973,978
1,079,437,479
934,164,575
Non-EU market sales revenue
600,977,524
346,769,705
170,134,194
223,476,142
Total revenue
4,960,125,965
3,079,432,607
3,557,019,790
2,338,624,128
The Petrol Group
Petrol d.d.
(in EUR)
2021
2020
2021
2020
Sale of merchandise
4,879,794,736
3,009,250,182
3,499,901,051
2,282,674,214
Energy and environmental solutions and production
80,331,229
70,182,425
57,118,739
55,949,914
Total revenue
4,960,125,965
3,079,432,607
3,557,019,790
2,338,624,128
The Petrol Group
Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 244
Other income
Profit from derivative financial instruments should be considered in conjunction with the loss
of derivative financial instruments disclosed under other expenses (Note 6.9) and the cost of
provisions for onerous contracts with customers for the supply of electricity disclosed under
other costs (Note 6.8). Accordingly, in 2021, the Group/Company had a net effect from
derivative financial instruments and provisions for onerous contracts with customers for the
supply of electricity in the amount of EUR 13,279,045 (2020: EUR 25,637,125) and EUR
12,589,044 (2020: EUR 23,474,808), respectively.
6.4 Costs of materials
6.5 Costs of services
(in EUR)
2021
2020
2021
2020
Gain on derivatives
269,931,980
100,106,658
269,846,734
99,748,455
Compensation, lawsuits, contractual penalties received
997,066
219,716
807,961
86,563
Gain on disposal of fixed assets
694,563
773,615
367,422
614,869
Compensation received from insurance companies
244,184
148,729
103,091
20,930
Payment of court fees
131,183
38,647
79,213
24,207
Utilisation of environmental provisions
-
10,772
-
10,772
Other income
5,349,657
4,488,049
3,585,000
3,401,784
Total other income
277,348,633
105,786,186
274,789,421
103,907,580
The Petrol Group
Petrol d.d.
(in EUR)
2021
2020
2021
2020
Costs of energy
21,471,005
19,897,486
18,411,758
17,509,877
Costs of consumables
6,867,875
7,061,792
4,908,925
5,631,831
Write-off of small tools
137,680
141,892
82,889
86,131
Other costs of materials
819,464
833,086
415,192
558,277
Total costs of materials
29,296,024
27,934,256
23,818,764
23,786,116
The Petrol Group
Petrol d.d.
(in EUR)
2021
2020
2021
2020
Costs of transport services
33,146,816
29,076,879
25,813,408
24,589,796
Costs of service station managers
30,812,368
34,622,264
30,812,368
34,622,264
Costs of fixed-asset maintenance services
24,904,966
20,745,238
18,793,301
16,064,895
Costs of payment transactions and bank services
12,872,038
9,618,812
7,960,337
6,975,692
Costs of professional services
9,428,504
9,951,995
6,952,438
8,380,955
Lease payments
8,441,011
5,347,894
5,965,952
3,276,653
Costs of fairs, advertising and entertainment
6,705,784
4,855,914
4,274,674
2,882,820
Costs of insurance premiums
4,880,292
4,118,507
2,891,553
2,421,131
Outsourcing costs
4,034,087
4,228,791
3,734,872
3,626,778
Costs of fire protection and physical and technical security
2,289,964
2,158,306
1,763,982
1,770,958
Costs of environmental protection services
2,094,424
1,905,910
1,343,340
1,405,309
Property management
1,206,789
1,579,012
906,228
1,471,278
Reimbursement of work-related costs to employees
969,200
861,196
508,490
466,612
Membership fees
865,602
844,590
208,848
340,188
Other costs of services
5,046,074
3,428,989
2,275,198
2,108,453
Total costs of services
147,697,919
133,344,297
114,204,989
110,403,782
The Petrol Group
Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 245
The Petrol Group
The costs of professional services include the cost of services performed by the auditors of the
annual report of EUR 231,465 (2020: EUR 150,000). Auditing services comprise the fee for
the auditing of the annual report of EUR 193,565 (2020: EUR 149,250). Other, non-auditing
services stood at EUR 37,900 in 2021 (2020: EUR 750).
Petrol d.d., Ljubljana
The costs of professional services include the cost of services performed by the auditors of the
annual report of EUR 73,000 (2020: EUR 63,350). Auditing services comprise the fee for the
auditing of the annual report of EUR 72,600 (2020: EUR 62,600). Other, non-auditing services
stood at EUR 400 in 2021 (2020: EUR 750).
Lease expenses
The Group's/Company's lease expenses include expenses for short-term leases, leases of
low-value assets and leases with variable lease payments.
6.6 Labour costs
In line with the measures taken by countries to contain the coronavirus (COVID-19) epidemic,
the Group made use of measures relating to the unconditional reimbursement of labour costs
of EUR 613,261 recording their effects as a decrease in labour costs.
In line with the measures taken by the state to contain the coronavirus (COVID-19) epidemic,
the Company made use of measures relating to the unconditional reimbursement of labour
costs of EUR 357,311 recording it as a decrease in labour costs.
(in EUR)
2021
2020
2021
2020
Depreciation of right-of-use assets
12,802,769
10,139,765
3,983,028
3,885,487
Finance expenses
2,425,310
2,676,699
1,291,951
1,508,731
Lease expenses
8,441,011
5,347,894
5,965,952
3,276,653
Total recognised costs/expenses
23,669,090
18,164,358
11,240,931
8,670,871
The Petrol Group
Petrol d.d.
(in EUR)
2021
2020
2021
2020
Salaries
85,401,258
75,489,309
58,731,102
55,002,363
Costs of other social insurance
7,576,461
6,133,427
4,234,369
4,267,276
Costs of pension insurance
6,691,637
5,592,134
5,604,526
4,229,710
Meal allowance
3,479,550
2,903,033
2,669,093
2,297,807
Transport allowance
3,340,708
3,100,888
1,916,044
1,865,354
Annual leave allowance
2,816,497
3,096,768
2,343,077
2,540,271
Supplementary pension insurance
1,648,409
1,542,016
1,520,449
1,479,500
Other allowances and reimbursements
3,386,989
4,998,999
1,300,331
2,991,858
Total labour costs
114,341,509
102,856,574
78,318,991
74,674,139
The Petrol Group
Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 246
Number of employees by formal education level as at 31 December 2020
Number of employees by formal education level as at 31 December 2021
On average, the Group and the Company had 5,387 and 2,122 employees in 2021,
respectively (2020: 4,054 and 2,129).
6.7 Depreciation and amortisation
Petrol d.d.
Group
employees
Employees at
third-party
managed
service stations Total
Company
employees
Employees at
third-party
managed
se r vi ce sta ti on s T ota l
Level I
18 -
18
2
- 2
Level II
50 29
79
35
29 64
Level III
110 10
120
5
10 15
Level IV
905 273
1,178
356
273 629
Level V
1,749 635
2,384
892
635 1,527
Level VI
301 49
350
168
49 217
Level VII
556 59
615
349
59 408
Level VII/2
379 17
396
375
17 392
Level VIII
17 -
17
11
- 11
Total
4,085
1,072
5,157
2,193
1,072
3,265
The Petrol Group
Group
employees
Employees at
third-party
managed
service stations Total
Company
employees
Employees at
third-party
managed
se r vi ce sta ti on s To ta l
Level I
39 1
40
5
1 6
Level II
43 24
67
29
24 53
Level III
152 7
159
7
7 14
Level IV
1,295 263
1,558
341
263 604
Level V
2,156 621
2,777
852
621 1,473
Level VI
515 50
565
165
50 215
Level VII
576 56
632
346
56 402
Level VII/2
405 15
420
354
15 369
Level VIII
19 -
19
7
- 7
Total
5,200
1,037
6,237
2,106
1,037
3,143
The Petrol Group
Petrol d.d.
(in EUR)
2021
2020
2021
2020
Depreciation of property, plant and equipment
51,689,896
51,755,226
32,282,770
33,544,505
Amortisation of intangible assests
13,229,924
11,934,808
9,676,444
8,642,941
Depreciation of right-of-use assets
12,802,769
10,139,765
3,983,028
3,885,487
Depreciation of investment property
1,369,169
1,164,368
754,429
1,128,294
Total depreciation and amortisation
79,091,758
74,994,167
46,696,671
47,201,227
The Petrol Group
Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 247
6.8 Other costs
The Group's impairment of assets relates mostly to the impairment of fixed assets by EUR
6,726,152 (2020: EUR 5,084,330) and to the impairment of inventories by EUR 7,205,752 EUR
(2020: EUR 7,331,973) to match their net realisable value. The Company's impairment of
assets relates mostly to the impairment of fixed assets by EUR 2,483,435 (2020: EUR
3,265,845).
Among the other costs of the Group/Company, EUR 20,924,453 (2020: 0 EUR) relates to the
costs of recognising short-term provisions from onerous contracts with customers for the
supply of electricity. This note should be read in conjunction with Notes 6.3, 6.9 and 6.41.
6.9 Other expenses
Loss from derivative financial instruments should be considered in conjunction with the profit
of derivative financial instruments disclosed under other revenue (Note 6.3) and the cost of
provisions for onerous contracts with customers for the supply of electricity disclosed under
other costs (Note 6.8). Accordingly, in 2021, the Group/Company had a net effect from
derivative financial instruments and provisions for onerous contracts with customers for the
supply of electricity in the amount of EUR 13,279,045 (2020: EUR 25,637,125) and EUR
12,589,044 (2020: EUR 23,474,808), respectively.
(in EUR)
2021
2020
2021
2020
Impairment/write-down of assets
14,259,583
16,207,510
2,705,061
4,383,807
Environmental charges and charges unrelated to operations
6,534,253
6,512,808
4,099,121
4,692,994
Sponsorships and donations
2,034,138
1,517,038
1,581,268
1,333,585
Loss on sale/disposal of property, plant and equipment
1,321,765
1,356,231
1,021,237
1,324,266
Other costs
30,548,619
1,345,139
26,256,662
4,957,539
Total other costs
54,698,358
26,938,726
35,663,349
16,692,191
The Petrol Group
Petrol d.d.
(in EUR)
2021
2020
2021
2020
Los s on derivat ives
235,728,482
74,469,533
236,333,237
76,273,647
Other expenses
876,145
491,988
(40,362)
35,262
Total other expenses
236,604,627
74,961,521
236,292,875
76,308,909
The Petrol Group
Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 248
6.10 Interests and dividends
Shares of profit or loss of equity accounted investees of the Petrol Group
Finance income from dividends paid by subsidiaries, associates and jointly controlled
entities of Petrol d.d., Ljubljana
(in EUR)
2021 2020
Plinhold d.o.o.
1,424,430
2,639,331
Aquasystems d.o.o.
814,857
765,316
Knešca d.o.o.
48,026
-
Ivicom Energy d.o.o.
(3,582)
(20,835)
Total net profit of associates
2,283,731
3,383,812
Geoenergo d.o.o.
187,370
(11,385)
Soenergetika d.o.o.
112,670
137,311
Vjetroelektrana Dazlina d.o.o.
-
(948)
Total net profit of jointly controlled entities
300,040
124,978
Total net finance income from interests 2,583,771 3,508,790
The Petrol Group
(in EUR)
2021
2020
Geoplin d.o.o. Ljubljana
958,260 958,260
Petrol Hidroenergija d.o.o.
713,159 -
Petrol Trade Handelsgesellschaft m.b.H.
151,905 1,140,803
Total subsidiaries 1,823,324 2,099,063
Aquasystems d.o.o.
763,964
764,409
Plinhold d.o.o. 564,272 564,272
Total associates
1,328,236
1,328,681
Soenergetika d.o.o.
135,495
172,934
Total jointly controlled e ntities 135,495 172,934
Total finance income from interests
3,287,054
3,600,678
Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 249
6.11 Other finance income and expenses
6.12 Corporate income tax
The Group had EUR 616,729 (2020: EUR 3,426,549) and EUR 18,786,511 (2020: EUR
1,966,916) in corporate income tax assets and liabilities, respectively, as at 31 December
2021. The Group does not offset the assets and liabilities, as they represent a receivable from
or a liability to different tax administrations.
In Slovenia, the effective corporate income tax rate stood at 19 percent in 2021 (2020: 19
percent), whereas the Group's tax rates ranged from 9 to 25 percent.
(in EUR)
2021 2020 2021 2020
Foreign exchange differences
15,516,194
19,625,423
12,635,432
15,444,180
Interest income
10,065,835
3,155,366
3,279,520
2,775,616
Gain on derivatives 4,525,059 2,101,828 7,093,905 2,101,828
Loss allowances for rec. reversed and bad debt recovered
682,431 534,782 363,486 981,353
Other finance income
1,383,319
1,488,976
136,286
1,397,455
Total other finance income 32,172,838 26,906,375 23,508,629 22,700,432
Foreign exchange differences (20,417,028) (16,990,985) (16,601,747) (12,693,137)
Interest expense
(9,189,739)
(8,491,033)
(9,218,597)
(7,594,011)
Allowance for operating receivables (8,253,470) (2,238,295) (3,023,504) -
Loss on derivatives (2,016,266) (4,673,449) (2,016,266) (4,673,449)
Impairment of investments and of goodwill
(873,366)
(3,641,563)
(11,193,296)
(4,584,965)
Other finance expenses
(1,601,601)
(545,365)
(1,628,763)
(446,003)
Total other finance expenses (42,351,470) (36,580,690) (43,682,173) (29,991,565)
Net finance expense (10,178,632) (9,674,315) (20,173,544) (7,291,133)
The Petrol Group Petrol d.d.
(in EUR)
2021
2020
2021
2020
Tax expense
(30,683,697)
(14,373,778)
(18,781,868)
(2,843,435)
Deferred tax
3,717,031
1,238,736
1,867,467
67,462
Taxes
(26,966,666) (13,135,042) (16,914,401) (2,775,973)
The Petrol Group
Petrol d.d.
(in EUR)
2021
2020
2021
2020
Profit before tax
151,448,027
85,465,084
83,397,343
31,669,489
Tax at effective tax rate
28,775,125
16,238,366
15,845,495
6,017,203
Tax effect of untaxed revenue
(3,009,646)
(2,977,999)
(2,278,094)
(2,263,228)
Tax effect of expenses not deducted on tax assessment
1,794,663 2,822,523 3,347,000 1,466,486
Increase in expenses by tax non-deductible revaluation
expenses
- (2,444,488) - (2,444,488)
Effect of higher/lower tax rates for companies abroad
(593,476)
(503,360)
-
-
Taxes
26,966,666
13,135,042
16,914,401
2,775,973
Effective tax rate
17.81 %
15.37 %
20.28 %
8.77 %
The Petrol Group
Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 250
Changes in deferred taxes of the Petrol Group
Deferred tax assets
Deferred tax liabilities
(in EUR)
Investments Provisions
Allow a nce for
receivables
Inventories Tax loss
Other
Total
As at 1 January 2020
1,516,705
3,558,668
5,955,057
92,727
565,263
162,675
11,851,095
Netting
(2,617,086)
Total net receivables as at 1 January 2020
9,234,009
(Charged)/credited to the statement of profit or loss
30,963
(305,162)
592,038
7,862
-
334,051
659,752
(Charged)/credited to other comprehensive income
21,805
-
-
-
-
-
21,805
Foreign exchange differences
(703)
(10,777)
(6,249)
(90)
(7,301)
(127)
(25,247)
As at 31 December 2020
1,568,770
3,242,729
6,540,846
100,499
557,962
496,599
12,507,405
Netting
(2,601,373)
Total net receivables as at 31 December 2020
9,906,032
0
0
0
New acquisitions as a result of control obtained
27,929
35,379
1,460,779
-
-
97,415
1,621,502
(Charged)/credited to the statement of profit or loss
(126,722)
2,346,117
1,266,332
13,768
426,769
(283,366)
3,642,898
(Charged)/credited to other comprehensive income
(768,364)
-
-
-
-
-
(768,364)
Foreign exchange differences
197
2,543
1,316
63
2,258
(41)
6,336
As at 31 December 2021
701,810
5,626,768
9,269,273
114,330
986,989
310,607
17,009,777
Netting
(5,630,103)
Total net receivables as at 31 December 2021
11,379,674
(in EUR)
Investments Fixed assets Other
Total
As at 1 January 2020
161,572
5,291,853
5,637
5,459,062
Netting
(2,617,086)
Total net liabilities as at 1 January 2020
2,841,976
New acquisitions as a result of control obtained
-
1,790,495
-
1,790,495
Charged/(credited) to the statement of profit or loss
-
(611,528)
32,544
(578,984)
Foreign exchange differences
(116)
(83,384)
-
(83,500)
As at 31 December 2020
161,456
6,387,436
38,181
6,587,073
Netting
(2,601,373)
Total net liabilities as at 31 December 2020
3,985,700
0
0
-
725,643
-
725,643
Charged/(credited) to the statement of profit or loss
-
(84,087)
9,954
(74,133)
Charged/(credited) to other comprehensive income
(7,529)
-
-
(7,529)
Foreign exchange differences
29
(17,322)
-
(17,293)
As at 31 December 2021
153,956
7,011,670
48,135
7,213,761
Netting
(5,630,103)
Total net liabilities as at 31 December 2021
1,583,658

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 251
Changes in deferred taxes of Petrol d.d., Ljubljana
Deferred tax assets
Deferred tax liabilities
6.13 Earnings per share
Basic earnings per share are calculated by dividing the owners’ net profit by the weighted
average number of ordinary shares, excluding ordinary shares owned by the Company/Group.
(in EUR)
I n ve stm e n ts P rovi si on s
Allowance for
receivables Other
Total
As at 1 January 2020
1,402,289
1,174,974
4,880,129
13,259
7,470,651
Netting
(602,411)
Total net receivables as at 1 January 2020
6,868,241
(Charged)/credited to the statement of profit or loss
30,963
88,050
(355,985)
304,434
67,462
(Charged)/credited to other comprehensive income
(23,698)
-
-
-
(23,698)
As at 31 December 2020
1,409,555
1,263,024
4,524,144
317,693
7,514,416
Netting
(602,411)
Total net receivables as at 31 December 2020
6,912,005
(Charged)/credited to the statement of profit or loss
(146,961)
1,918,231
243,338
(147,141)
1,867,467
(Charged)/credited to other comprehensive income
(619,733)
(619,733)
As at 31 December 2021
642,861
3,181,255
4,767,482
170,552
8,762,150
Netting
(606,636)
Total net receivables as at 31 December 2021
8,155,514
(in EUR)
Investments Fixed assets
Total
Total net liabilities as at 1 January 2020
-
-
-
As at 31 December 2020
141,155
461,256
602,411
Netting
(602,411)
Total net liabilities as at 31 December 2020
-
(Charged)/credited to other comprehensive income
4,225
-
4,225
As at 31 December 2021
145,380
461,256
606,636
Netting
(606,636)
Total net liabilities as at 31 December 2021
-
2021
2020
2021
2020
Net profit (in EUR)
124,481,361
72,330,042
66,482,942
28,893,516
Number of shares issued
2,086,301
2,086,301
2,086,301
2,086,301
Number of own shares at the beginning of the year
30,723
30,723
24,703
24,703
Number of own shares at the end of the year
30,723
30,723
24,703
24,703
Weighted average number of ordinary shares issued
2,055,578
2,055,578
2,061,598
2,061,598
Diluted average number of ordinary shares
2,055,578
2,055,578
2,061,598
2,061,598
Basic and diluted earnings per share
(EUR/share )
60.56 35.19 32.25 14.02
The Petrol Group
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 252
The Group and the Company have no potential dilutive ordinary shares, meaning the basic
and diluted earnings per share are identical.
6.14 Changes in other comprehensive income
The Petrol Group
The effective portion of changes in the fair value of the cash flow variability hedging instrument
increased by EUR 4,109,730 (in 2020: decrease of EUR 128,073) and decreased by the
deferred tax effect of EUR 772,591 (in 2020: increase of EUR 21,805). The change relates to
interest rate swap hedging and decreases the hedging reserve.
Unrealised actuarial gains and losses relate to provisions for post-employment benefits on
retirement.
Petrol d.d., Ljubljana
The effective portion of the changes in the fair value of the cash flow variability hedging
instrument increased by EUR 3,283,988 (in 2020: an increase of EUR 124,723) and decreased
by the deferred tax effect of EUR 623,957 (in 2020: a decrease of EUR 23,698). The change
relates to interest rate swap hedging and decreases the hedging reserve.
Unrealised actuarial gains and losses relate to provisions for post-employment benefits on
retirement.
6.15 Intangible assets
Intangible assets of the Petrol Group
(in EUR)
Material and
other rights
Right to use
concession
infrastructure Goodwill
Ongoing
investments
Long-term
deferred costs Total
Cost
As at 1 January 2020
43,386,512
117,831,441
107,629,738
7,406,707
223,915
276,478,313
New acquisitions
629,828
35,235
1,350,678
9,591,541
339,561
11,946,843
Disposals
(5,584,264)
(120,756)
-
-
(198,517)
(5,903,537)
Impairments
-
(551,705)
(2,662,470)
-
-
(3,214,175)
Reallocation of goodwill
-
-
(183,273)
-
-
(183,273)
Transfers between asset categories
600,161
768,616
-
100,977
-
1,469,754
Transfer from ongoing investments
5,819,718
4,272,936
-
(10,092,654)
-
-
Foreign exchange differences
(95,962)
(118,621)
(239,517)
(1,001)
-
(455,101)
As at 31 December 2020
44,755,993
122,117,146
105,895,156
7,005,570
364,959
280,138,824
Accumulate d amortisation
As at 1 January 2020
(24,490,228)
(54,248,690)
(8,847)
-
-
(78,747,765)
Amortisation
(6,801,644)
(5,128,356)
(4,808)
-
-
(11,934,808)
Disposals
5,580,429
119,832
-
-
-
5,700,261
Impairments
-
300,486
-
-
-
300,486
Transfers between asset categories
(323,106)
(547,425)
-
-
-
(870,531)
Foreign exchange differences
11,544
48,501
119
-
-
60,164
As at 31 December 2020
(26,023,005)
(59,455,652)
(13,536)
-
-
(85,492,193)
Net carrying amount as at 1 January 2020
18,896,284
63,582,751
107,620,891
7,406,707
223,915
197,730,548
Net carrying amount as at 31 December 2020
18,732,988
62,661,494
105,881,620
7,005,570
364,959
194,646,631

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 253
All intangible assets presented herein are the property of the Group and are unpledged.
16.1 percent of all intangible assets in use on 31 December 2021 were fully amortised
(compared to 13.1 percent as at 31 December 2020).
The intangible fixed assets as at 31 December 2021 were tested for impairment and it was
determined that there is a need to impair the goodwill of Zagorski metalac d.o.o. by EUR
873,366.
Goodwill
Goodwill structure presented by business combination from which it originates is as follows:
1
Instalacija d.o.o. was merged into Petrol d.d., Ljubljana in 2013. The company is treated as a cash-
generating unit of Petrol d.d., Ljubljana.
2
Euro-Petrol d.o.o. was renamed Petrol d.o.o.
3
Petrol-Jadranplin d.o.o. was renamed Petrol Plin d.o.o. and merged into Petrol d.o.o. in 2017.
4
Petrol-Butan d.o.o. was merged into Petrol Plin d.o.o. in 2012, whereas the latter was merged into
Petrol d.o.o. in 2017.
In 2021, the Group recognised goodwill from the acquisition of Crodux derivati dva d.o.o, which
as at 31 December 2021 amounted to EUR 148,574,769. The impact on the financial
statements is presented in Note 6.1.
(in EUR)
Material and
other rights
Right to use
concession
infrastructure Goodwill
Ongoing
investments
Long-term
deferred costs Total
Cost
As at 1 January 2021
44,755,993
122,117,146
105,895,156
7,005,570
364,959
280,138,824
New acquisitions as a result of control obtained
8,015,053
12,253,336
-
97,923
18,950
20,385,262
New acquisitions
448,882
76,570
148,894,359
6,363,213
387,945
156,170,969
Disposals
(347,753)
(7,183)
-
(47,110)
(279,602)
(681,648)
Impairments
-
-
(873,366)
-
-
(873,366)
Transfers between asset categories
201,150
-
-
64,656
(201,150)
64,656
Transfer from ongoing investments
7,694,856
1,306,460
-
(9,001,316)
-
-
Foreign exchange differences
17,971
7,625
(263,151)
2,707
-
(234,848)
As at 31 December 2021
60,786,152
135,753,954
253,652,998
4,485,643
291,102
454,969,849
Accumulate d amortisation
As at 1 January 2021
(26,023,005)
(59,455,652)
(13,536)
-
-
(85,492,193)
New acquisitions as a result of control obtained
(3,334,813)
(7,848,526)
-
-
-
(11,183,339)
Amortisation
(7,892,334)
(5,332,338)
(5,252)
-
-
(13,229,924)
Disposals
262,355
6,834
-
-
-
269,189
Foreign exchange differences
(4,343)
1,171
(515)
-
-
(3,687)
As at 31 December 2021
(36,992,140)
(72,628,511)
(19,303)
-
-
(109,639,954)
Net carrying amount as at 1 January 2021
18,732,988
62,661,494
105,881,620
7,005,570
364,959
194,646,631
Net carrying amount as at 31 December 2021
23,794,012
63,125,443
253,633,695
4,485,643
291,102
345,329,895
(in EUR)
31 December
2021
31 December
2020
Crodux derivati dva d.o.o.
148,574,769
-
Instalacija d.o.o., Koper
1
85,266,022
85,266,022
Euro-Petrol d.o.o.
2
12,652,682
12,610,999
Vjetroelektrana Ljubač d.o.o.
2,584,691
2,576,176
Atet d.o.o.
2,434,972
2,434,972
Petrol-Jadranplin d.o.o.
3
748,569
746,103
Vjetroelektrane Glunča d.o.o.
358,710
357,528
Crodux Plin d.o.o.
280,768
279,843
Petrol-Butan d.o.o.
4
280,125
279,202
MBILLS d.o.o.
245,250
245,250
Adria-Plin d.o.o.
207,137
212,159
Zagorski metalac d.o.o.
-
873,366
Total goodwill
253,633,695
105,881,620
The Petrol Group

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 254
In accordance with the IAS 36, goodwill was tested for impairment as at 31 December 2021
and it was determined that there is a need to impair the goodwill of Zagorski metalac d.o.o..
Based on the assessed value of the assets of the cash-generating unit Zagorski metalac d.o.o.,
the Group recognised the impairment of assets of EUR 4,519,397, of which EUR 873,366
relates to the impairment of goodwill and EUR 3,646,031 to the impairment of tangible assets.
Lower value estimates are mainly a reflection of lower expectations regarding future cash flows
due to the need to increase investment in fixed assets in the forecast period.
The recoverable amount of the acquired assets was assessed at the aggregate level of the
acquired companies, except for the company Instalacija d.o.o., where the recoverable amount
was assessed at the level of the cash-generating unit directly related to the assets acquired
during the acquisition of the companies.
Goodwill was tested for impairment using the method of the current value of expected free
cash flows, which are based on the future financial plans of cash-generating units. The
assumptions used in the calculation of net cash flows (long-term growth rate of cash flows,
cash flow projection, projection period, discount rate) are based on past operations and
reasonably expected operations in the future. Cash flow projection periods reflect the
operations and investment activities of individual companies. Growth rates of free cash flows
are based on expected price growth rates.
For Crodux derivati dva d.o.o, 4-year financial plans of the cash-generating unit, the required
rate of return of 12 percent after taxes and the annual growth rate of the remaining free cash
flows (the residual value) of 0.9 percent were used in testing goodwill for impairment.
For Instalacija d.o.o., 5-year financial plans of the cash-generating unit, the required rate of
return of 8.29 percent before taxes (2020: 8 percent) and the annual growth rate of the
remaining free cash flows (the residual value) of 1.97 percent (2020: 1 percent) were used in
testing goodwill for impairment.
For Petrol d.o.o., 5-year financial plans of the cash-generating unit, the required rate of return
of 8.5 percent before taxes (2020: 10.9 percent) and the annual growth rate of the remaining
free cash flows (the residual value) of 2 percent (2020: 2 percent) were used in testing goodwill
for impairment. The testing of Petrol d.o.o.’s goodwill comprises goodwill arising from the
absorption of Euro-Petrol d.o.o., Petrol-Jadranplin d.o.o., Crodux Plin d.o.o., Petrol Butan
d.o.o.
For Atet d.o.o., 5-year financial plans of the cash-generating unit, the required rate of return of
7.4 percent before taxes (2020: 6.9 percent) and the annual growth rate of the remaining free
cash flows (the residual value) of 2 percent (2020: 2 percent) were used in testing goodwill for
impairment.
For MBills d.o.o., 5-year financial plans of the cash-generating unit, the average required rate
of return of 24.01 percent (2020:19.8 percent) after taxes and the annual growth rate of the
remaining free cash flows (the residual value) of 2 percent (2020: 2 percent) were used in
testing goodwill for impairment. The cash flow projection period is based on plans for the
development and growth of the company up to the period when the cash flows are expected
to stabilise over the long term.
For Vjetroelektrane Glunča d.o.o., 21-year financial plans of the cash-generating unit and the
required rate of return of 8.7 percent after taxes (2020: 9.5 percent) were used in testing
goodwill for impairment. The value of the remaining cash flows was not taken into account in

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 255
the calculation. The cash flow projection period corresponds to the life of the existing wind
power plants and the concession agreement.
For Vjetroelektrana Ljubač d.o.o., the 25-year financial plans of the cash-generating unit and
the average required rate of return of 8.5 percent after taxes (2020: 8.6 percent) were used in
testing goodwill for impairment. The value of the remaining cash flows was not taken into
account in the calculation. The cash flow projection period corresponds to the life of the existing
wind power plants and the concession agreement.
For Adria-Plin d.o.o., 7-year financial plans of the cash-generating unit, the required rate of
return of 8.4 percent after taxes (2020: 10.3 percent) and the annual growth rate of the
remaining free cash flows (the residual value) of 2 percent (2020: 1 percent) were used in
testing goodwill for impairment.
For Zagorski metalac d.o.o., the 5-year financial plans of the cash-generating unit, the required
rate of return of 8 percent after taxes (2020: 10.3 percent) and the annual growth rate of the
remaining free cash flows (the residual value) of 0 percent (2020: 0 percent) were used in
testing goodwill for impairment.
The effect of changes in the discount rate or the long-term growth rate of the remaining free
cash flows on the estimated fair value of assets is presented below:
Year 2020
Year 2021
(in EUR thousand)
Long-term
grow th rate (g)
Discount rate
(WACC)
Long-term
growth rate (g)
+ 0.5
- 0.5
(18)
(11)
(27)
(16)
- 0.5
+ 0.5
18
11
32
-
+ 0.5
- 0.5
(714)
(611)
(1,215)
-
- 0.5
+ 0.5
876
750
1,832
-
+ 0.5
-
(849)
-
(849)
(849)
- 0.5
-
883
-
883
-
+ 0.5
- 0.5
(10,668)
(8,358)
(18,094)
-
- 0,5
+ 0.5
11,947
9,353
22,611
-
+ 0.5
-0.25
(11,000)
(4,400)
(14,700)
-
- 0.5
+0.25
12,700
4,600
18,200
-
+ 0.5
- 0.5
(798)
(598)
(1,317)
-
- 0.5
+ 0.5
(912)
684
1,716
-
+ 0.5
-
(549)
-
(549)
-
- 0.5
-
573
-
573
-
+ 0.5
-
(1,581)
-
(1,581)
(1,163)
- 0.5
-
1,696
-
1,696
-
+ 0.5
- 0.5
(327)
(210)
(515)
-
- 0.5
+ 0.5
360
232
622
-
Atet d.o.o. 5.90%
Adria-Plin d.o.o. 10.30% 1%
Change in key assumptionsKey assumptions
Effect of change
in the discount
ra te on the
recovera ble
amount
Effect of change
in the long-term
growth rate on
the recoverable
amount
Effect of change
in the discount
ra te a nd the
long-term
grow th rate on
the recoverable
amount
Effect on
impairment
when key
assumtions
change
Discount ra te
(WACC)
;
6.90% 2%
EL-TEC Mulej d.o.o. 7.50% -
;
10.90% 2%
Instalacija d.o.o., Koper 8.00% 1%
Euro - Petrol d.o.o. 9.80%
;
9.50% 2%
Vjetroelektrane Glunča d.o.o. 9.50% -
MBills d.o.o. 30.00%
;
9.00% -
Zagorski metalac d.o.o. 10.30% 0%
Vjetroelektrana Ljubač d.o.o. 5.60%
(in EUR thousand)
Long-term
grow th rate (g)
Discount rate
(WACC)
Long-term
growth rate (g)
+ 0.5
- 0.5
(5)
(4)
(8)
(212)
- 0.5
+ 0.5
5
4
11
(193)
+ 0.5
- 0.5
(803)
(660)
(1,350)
-
- 0.5
+ 0.5
968
796
1,963
-
+ 0.5
- 0.5
(13,045)
(10,421)
(22,636)
-
- 0.5
+ 0.5
14,097
11,269
26,415
-
+ 0.5
- 0.5
(27,781)
25,870
(46,676)
-
- 0.5
+ 0.5
32,420
(22,174)
63,518
-
+ 0.5
-0.5
(13,167)
(10,469)
(22,051)
-
- 0.5
+0.5
15,422
12,268
30,253
-
+ 0.5
- 0.5
(166)
(125)
(278)
-
- 0.5
+ 0.5
182
136
335
-
+ 0.5
-
(544)
-
(544)
-
- 0.5
-
570
-
570
-
+ 0.5
-
(1,413)
-
(1,413)
-
- 0.5
-
1,507
-
1,507
-
8.50%
8.29%
13.03%
8.70%
8.70%
8.41%
7.40%
12.00%
2%
2%
2%
-0.90%
2%
2%
-
-
Key assumptions
Discount ra te
(WACC)
Adria-Plin d.o.o.
Vjetroelektrane Glunča d.o.o.
Vjetroelektrana Ljubač d.o.o.
Atet d.o.o.
Crodux derivati dva d.o.o.
Euro - Petrol d.o.o.
Instalacija d.o.o., Koper
MBills d.o.o.
Effect of change
in the discount
ra te on the
recovera ble
amount
Effect of change
in the long-term
growth rate on
the recoverable
amount
Effect of change
in the discount
ra te a nd the
long-term
grow th rate on
the recoverable
amount
Effect on
impairment
when key
assumtions
change
24.01%
;
10.00%
;
Change in key assumptions

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 256
Overview of acquisitions resulting from a takeover of/control obtained over companies
in 2021
Overview of items exceeding 5 percent of net carrying amount as at 31 December 2021
(in EUR)
Intangible assets of Petrol d.d., Ljubljana
All intangible assets presented herein are owned by the Company and are unpledged.
13.5 percent of all intangible assets in use on 31 December 2021 were fully amortised
(compared to 8.9 percent as at 31 December 2020).
(in EUR)
Material and
other rights
Right to use
concession
infrastructure
Ongoing
investments
Long-term
deferred costs
Total net
carrying amount
Crodux derivati dva d.o.o.
923,220
4,404,810
-
-
5,328,030
E 3, d.o.o.
3,757,020
-
97,923
18,950
3,873,893
New acquistions as a result of control obtained
4,680,240
4,404,810
97,923
18,950
9,201,923
31 December
2021
31 December
2020
Right to use natural gas distribution infrastructure in the municipality of Domžale
6,749,645
7,400,732
SAP software rights
5,119,767
4,727,058
Contracts with custommers (Crodux Plin d.o.o.)
3,751,426
5,158,211
Right to use natural gas distribution infrastructure in the municipality of Slovenske Konjice
3,736,864
3,896,949
Right to use natural gas distribution infrastructure in the municipality of Škofja Loka
3,401,814
3,516,102
Right to use natural gas distribution infrastructure in the municipality of Idrija
3,340,181
3,486,323
The Petrol Group
(in EUR)
Material and
other rights
Right to use
concession
infrastructure Goodwill
Ongoing
investments
Long-term
deferred costs Total
Cost
As at 1 January 2020
34,712,923
107,489,063
87,712,518
6,731,484
223,915
236,869,903
New acquisitions
-
-
-
8,385,005
138,411
8,523,416
Disposals
(5,592,402)
(48,402)
-
-
(198,517)
(5,839,321)
Impairments
-
(551,705)
(2,446,496)
-
-
(2,998,201)
Transfer between asset categories
-
1,368,777
-
72,736
-
1,441,513
Transfer from ongoing investments
5,787,678
3,202,702
-
(8,990,380)
-
-
As at 31 December 2020
34,908,199
111,460,435
85,266,022
6,198,845
163,809
237,997,310
Accumulate d amortisation
As at 1 January 2020
(23,007,066)
(49,879,553)
-
-
-
(72,886,619)
Amortisation
(4,426,020)
(4,216,921)
-
-
-
(8,642,941)
Disposals
5,588,642
47,450
-
-
-
5,636,092
Impairments
-
300,486
-
-
-
300,486
Transfer between asset categories
-
(870,531)
-
-
-
(870,531)
As at 31 December 2020
(21,844,444)
(54,619,069)
-
-
-
(76,463,513)
Net carrying amount as at 1 January 2020
11,705,857
57,609,510
87,712,518
6,731,484
223,915
163,983,284
Net carrying amount as at 31 December 2020
13,063,755
56,841,366
85,266,022
6,198,845
163,809
161,533,797
(in EUR)
Material and
other rights
Right to use
concession
infrastructure Goodwill
Ongoing
investments
Long-term
deferred costs Total
Cost
As at 1 January 2021
34,908,199
111,460,435
85,266,022
6,198,845
163,809
237,997,310
New acquisitions
-
1,444
-
3,685,370
387,945
4,074,759
Disposals
(341,562)
(7,050)
-
(47,110)
(274,961)
(670,683)
Transfer from ongoing investments
7,367,395
589,998
-
(7,957,393)
-
As at 31 December 2021
41,934,032
112,044,827
85,266,022
1,879,712
276,793
241,401,386
Accumulate d amortisation
As at 1 January 2021
(21,844,444)
(54,619,069)
-
-
-
(76,463,513)
Amortisation
(5,470,352)
(4,206,092)
-
-
-
(9,676,444)
Disposals
256,688
6,701
-
-
-
263,389
As at 31 December 2021
(27,058,108)
(58,818,460)
-
-
-
(85,876,568)
Net carrying amount as at 1 January 2021
13,063,755
56,841,366
85,266,022
6,198,845
163,809
161,533,797
Net carrying amount as at 31 December 2021
14,875,924
53,226,367
85,266,022
1,879,712
276,793
155,524,818

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 257
Intangible fixed assets as at 31 December 2021 were tested for impairment and it was
determined that there is no need for the impairment of intangible fixed assets.
In 2020, the Company tested intangible fixed assets for impairment and it was determined that
there is a need to impair the goodwill of EL-TEC Mulej d.o.o. by 2,446,296 and the right to use
the concession infrastructure by EUR 251,219.
Goodwill
As at 31 December 2021, the Company disclosed goodwill arising from the merger by
absorption of Instalacija d.o.o..
In 2013, the merger by absorption of Instalacija d.o.o. resulted in goodwill in the amount of
EUR 85,266,022. In 2013, the difference between the net asset value of the merged company,
which also includes goodwill, and the investment in the amount of EUR 53,452,160 in the
amount of EUR 12,938,309 was recognised in retained earnings, while the remaining
difference in the amount of EUR 40,513,851 was recognised in the financial statements of
Petrol d.d., Ljubljana as a fair value reserve.
In 2021, the Company tested goodwill for impairment. It was determined that there is no need
for the impairment of goodwill.
The assumptions used in impairment testing and the effects recognised in the Company's
financial statements have been explained as part of goodwill disclosure relating to the Group.
Overview of items exceeding 5 percent of net carrying amount as at 31 December 2021
(in EUR)
6.16 Right-of-use assets
Right-of-use assets of the Petrol Group
31 December
2021
31 December
2020
Right to use natural gas distribution infrastructure in the municipality of Domžale
6,749,645
7,400,732
SAP software rights
5,119,767
4,727,058
Right to use natural gas distribution infrastructure in the municipality of Slovenske Konjice
3,736,864
3,896,949
Right to use natural gas distribution infrastructure in the municipality of Škofja Loka
3,401,814
3,516,102
Right to use natural gas distribution infrastructure in the municipality of Idrija
3,340,181
3,486,323
Petrol d.d.
(in EUR)
Right to use
land
Right to use
buildings
Right to use
equipment Total
Cost
As at 1 January 2020
44,524,592
32,711,406
5,099,421
82,335,419
New acquistions
-
5,533,630
922,450
6,456,080
Disposals
(689,581)
(6,141,585)
(51,913)
(6,883,079)
Foreign exchange differences
(150,032)
(311,899)
(4,241)
(466,172)
As at 31 December 2020
43,684,979
31,791,552
5,965,717
81,442,248
Accumulated depreciation
As at 1 January 2020
(3,109,854)
(5,905,560)
(1,781,056)
(10,796,470)
Depreciation
(3,119,139)
(5,275,933)
(1,744,693)
(10,139,765)
Disposals
18,325
1,754,754
48,008
1,821,087
Foreign exchange differences
13,218
59,529
1,759
74,506
As at 31 December 2020
(6,197,450)
(9,367,210)
(3,475,982)
(19,040,642)
Net carrying amount as at 1 January 2020
41,414,738
26,805,846
3,318,365
71,538,949
Net carrying amount as at 31 December 2020
37,487,529
22,424,342
2,489,735
62,401,606

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 258
Overview of acquisitions resulting from a takeover of/control obtained over companies
in 2021
Right-of-use assets of Petrol d.d., Ljubljana
(in EUR)
Right to use
land
Right to use
buildings
Right to use
equipment Total
Cost
As at 1 January 2021
43,684,979
31,791,552
5,965,717
81,442,248
New acquistions as a result of control obtained
26,299,180
34,490,847
495,114
61,285,141
New acquistions
69,593
8,012,016
786,309
8,867,918
Disposals
(2,444,480)
(5,708,241)
(480,935)
(8,633,656)
Foreign exchange differences
(20,858)
5,037
598
(15,223)
As at 31 December 2021
67,588,414
68,591,211
6,766,803
142,946,428
Accumulated depreciation
As at 1 January 2021
(6,197,450)
(9,367,210)
(3,475,982)
(19,040,642)
New acquistions as a result of control obtained
(4,951,737)
(8,517,443)
(189,362)
(13,658,542)
Depreciation
(3,437,050)
(7,773,293)
(1,592,426)
(12,802,769)
Disposals
169,421
4,631,933
380,573
5,181,927
Foreign exchange differences
3,205
(7,520)
(575)
(4,890)
As at 31 December 2021
(14,413,611)
(21,033,533)
(4,877,772)
(40,324,916)
Net carrying amount as at 1 January 2021
37,487,529
22,424,342
2,489,735
62,401,606
Net carrying amount as at 31 December 2021
53,174,803
47,557,678
1,889,031
102,621,512
(in EUR)
Right to use
land
Right to use
buildings
Right to use
equipment
Total net
carrying amount
Crodux derivati dva d.o.o.
21,347,443
25,936,450
223,338
47,507,231
E 3, d.o.o.
-
36,954
82,414
119,368
New acquistions as a result of control obtained
21,347,443
25,973,404
305,752
47,626,599
(in EUR)
Right to use
land
Right to use
buildings
Right to use
equipment Total
Cost
As at 1 January 2020
32,908,459
1,015,136
4,463,798
38,387,393
New acquisitions
-
4,377
922,450
926,827
Disposals
(689,581)
(89,282)
(47,735)
(826,598)
As at 31 December 2020
32,218,878
930,231
5,338,513
38,487,622
Accumulated depreciation
As at 1 January 2020
(2,162,182)
(303,738)
(1,574,909)
(4,040,829)
Depreciation
(2,143,857)
(214,456)
(1,527,174)
(3,885,487)
Disposals
18,325
89,282
47,735
155,342
As at 31 December 2020
(4,287,714)
(428,912)
(3,054,348)
(7,770,974)
Net carrying amount as at 1 January 2020
30,746,277
711,398
2,888,889
34,346,564
Net carrying amount as at 31 December 2020
27,931,164
501,319
2,284,165
30,716,648

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 259
The Group holds land, buildings and various equipment under a lease. The term of a lease
depends on the type of the leased asset. It can be:
from 5 to 30 years for land,
from 5 to 20 years for buildings,
from 1 to 10 years for equipment.
The lessee's lease payment liabilities are not secured. The Group applies an exemption
allowed by the standard to the recognition of liabilities arising from short-term leases and
leases of low-value assets. Lease payments are fixed and stipulated in the contract.
Extension and termination options
Lease contracts can be terminated if the parties do not honour contractual obligations or if
there is a mutual agreement to terminate the contract. Options to extend the contracts have
not been provided for.
6.17 Property, plant and equipment
Property, plant and equipment of the Petrol Group
(in EUR)
Right to use
land
Right to use
buildings
Right to use
equipment Total
Cost
As at 1 January 2021
32,218,878
930,231
5,338,513
38,487,622
New acquisitions
-
947,901
193,304
1,141,205
Disposals
-
-
(134,354)
(134,354)
As at 31 December 2021
32,218,878
1,878,132
5,397,463
39,494,473
Accumulated depreciation
As at 1 January 2021
(4,287,714)
(428,912)
(3,054,348)
(7,770,974)
Depreciation
(2,122,086)
(537,906)
(1,323,036)
(3,983,028)
Disposals
-
-
134,352
134,352
As at 31 December 2021
(6,409,800)
(966,818)
(4,243,032)
(11,619,650)
Net carrying amount as at 1 January 2021
27,931,164
501,319
2,284,165
30,716,648
Net carrying amount as at 31 December 2021
25,809,078
911,314
1,154,431
27,874,823
(in EUR) Land Buildings Machinery Equipment
Ongoing
investments Total
Cost
As at 1 January 2020 217,739,798 723,021,907 4,732,655 329,048,249 56,142,718 1,330,685,327
New acquisitions as a result of control obtained - - - - 1,910,082 1,910,082
New acquisitions - - - - 68,400,698 68,400,698
Disposals (350,211) (1,995,224) (29,908) (9,997,674) (158,364) (12,531,381)
Impairments (1,248,001) (2,807,464) (229,783) (1,536,949) - (5,822,197)
Reallocation of goodwill - - - 297,715 - 297,715
Transfer between asset categories 719,507 7,815,086 - (2,798,881) (987,699) 4,748,013
Transfer from ongoing investments 2,329,818 36,509,476 487,137 33,908,747 (73,235,178) -
Transfer to investment property - (14,075,325) - - (754,148) (14,829,473)
Foreign exchange differences (896,531) (1,923,293) (4,787) (1,089,785) (58,130) (3,972,526)
As at 31 December 2020
218,294,380
746,545,163
4,955,314
347,831,422
51,259,979
1,368,886,258
Accumulated depreciation
As at 1 January 2020 - (428,928,691) (2,097,886) (189,726,587) - (620,753,164)
Depreciation - (25,087,406) (312,590) (26,355,230) - (51,755,226)
Disposals - 909,188 2,585 6,661,142 - 7,572,915
Impairments - 205,794 - 532,073 - 737,867
Transfer between asset categories - (4,598,534) - 706,225 - (3,892,309)
Transfer to investment property - 7,964,325 - - - 7,964,325
Foreign exchange differences - 875,742 4,231 566,982 - 1,446,955
As at 31 December 2020
-
(448,659,582)
(2,403,660)
(207,615,395)
-
(658,678,637)
Net carrying amount as at 1 January 2020
217,739,798
294,093,216
2,634,769
139,321,662
56,142,718
709,932,163
Net carrying amount as at 31 December 2020
218,294,380
297,885,581
2,551,654
140,216,027
51,259,979
710,207,621

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 260
59 percent of all items of property, plant and equipment in use on 31 December 2021 were
fully depreciated (compared to 55 percent as at 31 December 2020).
Items of property, plant and equipment pledged as security
All items of property, plant and equipment of the Group are unpledged.
Assets held under finance lease
None of the Group’s assets are held under finance lease.
When testing asset impairment indicators, the Group determined that the carrying amount of
the assets of the cash-generating unit Zagorski metalac d.o.o., cash-generating unit of biogas
plants, certain land, buildings and certain investments in progress exceeded the fair value and
value in use of these assets. Lower value estimates are mainly a reflection of the lower
expectations regarding future cash flows. Therefore, the Group impaired the assets of the
cash-generating units as at 31 December 2021 by EUR 6,726,152, based on independent
appraisals and internal assessments.
The assumptions used in estimating the value of the cash-generating unit Zagorski metalac
d.o.o. and the effects recognised in the Group's financial statements have been explained as
part of the goodwill disclosure relating to the Group.
To assess the value of the fixed assets of the cash-generating unit of biogas plants, the 3-year
financial plans of the cash-generating unit, showing negative cash flow, were used. Based on
this, the Group impaired the total assets of the cash-generating unit of biogas plants by EUR
1,320,938.
To estimate the value of the land, buildings and investments in progress, the Group used the
model of comparable market prices less the costs of the sale and impairment of land, buildings
and investments in progress in the amount of EUR 1,759,183 based on independent appraiser
estimates and internal estimates.
In 2020, when testing asset impairment indicators, the Group determined that the carrying
amount of the assets of the cash-generating units El-Tec Mulej d.o.o., Ekoen d.o.o. and Petrol
Montenegro MNE d.o.o. exceeded the fair value and value in use of these assets. Therefore,
the Group impaired the assets of the cash-generating units by EUR 6,233,941.
(in EUR) Land Buildings Machinery Equipment
Ongoing
investments Total
Cost
As at 1 January 2021 218,294,380 746,545,163 4,955,314 347,831,422 51,259,979 1,368,886,258
New acquisitions as a result of control obtained 28,967,244 108,494,151 8,253,769 33,399,447 2,331,159 181,445,770
New acquisitions - 252,855 6,318 5,507,518 41,935,717 47,702,408
Disposals (642,520) (2,375,310) (177,107) (13,283,064) (676,606) (17,154,607)
Impairments (1,017,963) (5,091,199) - (2,129,031) (596,686) (8,834,879)
Transfer between asset categories - 307,567 (306,624) 926,878 (80,909) 846,912
Transfer from ongoing investments 1,325,712 16,462,039 487,228 15,559,128 (33,834,107) -
Transfer to investment property (3,463) (551,235) - - - (554,698)
Transfer from investment property - 2,652,014 - - - 2,652,014
Foreign exchange differences 172,854 266,719 (2,792) 208,887 98,617 744,285
As at 31 December 2021
247,096,244
866,962,764
13,216,106
388,021,185
60,437,164
1,575,733,463
Accumulated depreciation
As at 1 January 2021 - (448,659,582) (2,403,660) (207,615,395) - (658,678,637)
New acquisitions as a result of control obtained - (74,088,161) (5,960,151) (28,394,787) - (108,443,099)
Depreciation - (25,364,575) (743,218) (25,582,103) - (51,689,896)
Disposals - 1,004,879 175,380 9,961,870 - 11,142,129
Impairments - 693,637 - 1,415,090 - 2,108,727
Transfer between asset categories - 1,984 (2,408) 424 - -
Transfer to investment property - 119,521 - - - 119,521
Transfer from investment property - (2,388,194) - - - (2,388,194)
Foreign exchange differences - (93,107) 2,121 (108,317) - (199,303)
As at 31 December 2021
-
(548,773,598)
(8,931,936)
(250,323,218)
-
(808,028,752)
Net carrying amount as at 1 January 2021
218,294,380
297,885,581
2,551,654
140,216,027
51,259,979
710,207,621
Net carrying amount as at 31 December 2021
247,096,244
318,189,166
4,284,170
137,697,967
60,437,164
767,704,711

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 261
Overview of acquisitions resulting from a takeover of/control obtained over companies
in 2021
Overview of groups of investments in property, plant and equipment in 2021 including
investments in excess of EUR 1,200,000
Property, plant and equipment of Petrol d.d., Ljubljana
(in EUR) Land Buildings Machinery Equipment
Ongoing
investments
Total net
carrying amount
Crodux derivati dva d.o.o. 28,693,571 32,565,585 331,132 5,003,260 1,313,536 67,907,084
E 3, d.o.o. 273,673 1,840,405 1,962,486 1,400 1,017,623 5,095,587
New acquistions as a result of control obtained
28,967,244
34,405,990
2,293,618
5,004,660
2,331,159
73,002,671
(in EUR)
2021
Energy management of buildings
10,060,984
Investments in wind farms
5,851,030
Purchase of vehicles
3,969,470
Investments in third-party fixed assets (Zaječar Public Lightning)
2,730,137
Geoplin office building - technical tract
2,446,671
Investment in a storage facility
2,373,940
E 3 office building
1,834,746
(in EUR)
Land Buildings Equipment
Ongoing
investments Total
Cost
As at 1 January 2020 103,350,635 535,951,087 247,981,148 44,292,962 931,575,832
New acquisitions - - - 30,548,494 30,548,494
Disposals (350,211) (1,957,394) (7,016,822) (158,364) (9,482,791)
Impairments - (2,466,763) (1,536,949) - (4,003,712)
Transfers between asset categories (167,215) 4,935,901 80,304 (72,736) 4,776,254
Transfer from ongoing investments 14,375 30,879,533 25,732,958 (56,626,866) -
Transfer to investment property - (30,442) - (754,148) (784,590)
As at 31 December 2020
102,847,584
567,311,922
265,240,639
17,229,342
952,629,487
Accumulated depreciation
As at 1 January 2020 - (381,759,290) (161,585,211) - (543,344,501)
Depreciation - (16,048,512) (17,495,993) - (33,544,505)
Disposals - 871,231 5,937,392 - 6,808,623
Impairments - 205,794 532,073 - 737,867
Transfers between asset categories - (3,899,012) 6,703 - (3,892,309)
Transfer to investment property - 30,442 - - 30,442
As at 31 December 2020
-
(400,599,347)
(172,605,036)
-
(573,204,383)
Net carrying amount a s a t 1 January 2020
103,350,635
154,191,797
86,395,937
44,292,962
388,231,331
Net carrying amount as at 31 December 2020
102,847,584
166,712,575
92,635,603
17,229,342
379,425,104
(in EUR)
Land Buildings Equipment
Ongoing
investments Total
Cost
As at 1 January 2021 102,847,584 567,311,922 265,240,639 17,229,342 952,629,487
New acquisitions - - - 21,901,672 21,901,672
Disposals (360,494) (935,220) (8,119,724) (676,606) (10,092,044)
Impairments (1,017,963) (1,445,168) (2,129,031) - (4,592,162)
Transfers between asset categories - 943 926,878 (16,253) 911,568
Transfer from ongoing investments 1,324,989 12,089,495 10,707,788 (24,122,272) -
Transfer from investment property - 353,455 - - 353,455
As at 31 December 2021
102,794,116
577,375,427
266,626,550
14,315,883
961,111,976
Accumulated depreciation
As at 1 January 2021 - (400,599,347) (172,605,036) - (573,204,383)
Depreciation - (15,896,530) (16,386,240) - (32,282,770)
Disposals - 881,829 7,868,781 - 8,750,610
Impairments - 693,637 1,415,090 - 2,108,727
Transfers between asset categories - (424) 424 - -
Transfer from investment property - (222,003) - - (222,003)
As at 31 December 2021
-
(415,142,838)
(179,706,981)
-
(594,849,819)
Net carrying amount a s a t 1 January 2021
102,847,584
166,712,575
92,635,603
17,229,342
379,425,104
Net carrying amount as at 31 December 2021
102,794,116
162,232,589
86,919,569
14,315,883
366,262,157

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 262
38.4 percent of all items of property, plant and equipment in use on 31 December 2021 were
fully depreciated (compared to 34.2 percent as at 31 December 2020).
Items of property, plant and equipment pledged as security
All items of property, plant and equipment of the Company are unpledged.
Assets held under finance lease
The Company has no property, plant and equipment under finance lease.
In accordance with the IAS 36 and based on external and internal sources of information and
factors, the Company checked whether there was an indication that the assets may be
impaired as at 31 December 2021. When testing asset impairment indicators, the Group
determined that the carrying amount of the assets of the cash-generating unit of biogas plants,
certain land, buildings and certain investments in progress exceeded the fair value and value
in use of these assets.
To assess the value of the fixed assets of the cash-generating unit of biogas plants, the 3-year
financial plans of the cash-generating unit, showing negative cash flow, were used. Based on
this, the Company impaired the total assets of the cash-generating unit of biogas plants by
EUR 1,320,938.
To estimate the value of the land, buildings and investments in progress, the Company used
the model of comparable market prices less the costs of sale and impairment of land and
buildings in the amount of EUR 1,162,497 based on independent appraiser estimates and
internal estimates.
In 2020, when testing asset impairment indicators, the Group determined the need to impair
the cash-generating unit EL-TEC Mulej by EUR 3,265,845.
Overview of groups of investments in property, plant and equipment in 2021 including
investments in excess of EUR 1,200,000
(in EUR)
2021
Energy management of buildings
10,060,984
Investment in a storage facility
2,373,940

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 263
6.18 Investment property
Investment property comprises buildings (storage facilities, car washes, bars) being leased out
by the Group/Company.
The Petrol Group
After assessing the intended use of the property and the long-term goals pursued as at 31
December 2021, the Group determined that certain property held by the Group meets the
criteria to be classified as investment property. The Group transferred property of EUR 435,177
(2020: EUR 6,865,149 EUR) from fixed assets to investment property and EUR 263,820 from
investment property to fixed assets as a result.
The Petrol Petrol d.d.
(in EUR)
Investment
property
Investment
property
Cost
As at 1 January 2020 36,335,562 35,351,947
Disposals (241,532) (241,532)
Impairments (3,571,076) (999,168)
Transfer between asset categories (6,217,766) (6,217,766)
Transfer from property, plant and equipment 14,829,474 784,591
As at 31 December 2020
41,134,662
28,678,072
Accumulated depreciation
As at 1 January 2020 (19,504,258) (18,987,754)
Depreciation (1,164,368) (1,128,294)
Impairments 257,460 257,460
Transfer between asset categories 4,762,840 4,762,840
Transfer from property, plant and equipment (7,964,325) (30,442)
As at 31 December 2020
(23,612,650)
(15,126,190)
Net carrying amount as at 1 January 2020
16,831,304
16,364,192
Net carrying amount as at 31 December 2020
17,522,012
13,551,882
The Petrol Petrol d.d.
(in EUR)
Investment
property
Investment
property
Cost
As at 1 January 2021 41,134,662 28,678,072
New acquistions as a result of control obtained
120,243
-
Impairments (2,616,094) (516,016)
Transfer between asset categories 16,297 16,297
Transfer to property, plant and equipment (2,652,014) (353,455)
Transfer from property, plant and equipment 554,698 -
Foreign exchange differences
19,587
-
As at 31 December 2021
36,577,379
27,824,898
Accumulated depreciation
As at 1 January 2021 (23,612,650) (15,126,190)
Depreciation (1,369,169) (754,429)
Impairments 2,288,415 169,712
Transfer to property, plant and equipment 2,388,194 222,003
Transfer from property, plant and equipment (119,521) -
Foreign exchange differences
(12,905)
-
As at 31 December 2021
(20,437,636)
(15,488,904)
Net carrying amount as at 1 January 2021
17,522,012
13,551,882
Net carrying amount as at 31 December 2021
16,139,743
12,335,994

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 264
In 2021, revenue generated by the Group from investment property totalled EUR 3,664,417
(2020: EUR 2,936,604). The Group estimates that the fair value of investment property as at
31 December 2021 amounts to EUR 28,624,904 (31 December 2020: EUR 32,934,232). The
Group assesses fair value using the standardised cash flows capitalisation method, whereby
cash flows consist mainly of rents received from the lease of investment property.
To assess the fair value of investment property, the required rate of return from 8.95 to 11.95
percent after taxes (2020: from 8.95 to 11.95 percent) and the long-term growth rate of lease
payments from 0.05 to 1 percent (2020: from 0.05 to 1 percent) were used.
In the process of testing investment property impairment indicators, the Group found that the
carrying amount of individual investment property exceeded the fair value and value in use of
these assets. Therefore, the Group impaired investment property as at 31 December 2021 by
EUR 327,679 (31 December 2020: EUR 3,313,616), based on internal assessments.
Overview of acquisitions resulting from a takeover of/control obtained over companies
in 2021
Petrol d.d., Ljubljana
In 2021, revenue generated by the Company from investment property totalled EUR 3,060,974
(2020: EUR 2,336,056). The Company estimates that the fair value of investment property as
at 31 December 2021 amounts to EUR 23,184,416 (31 December 2020: EUR 27,317,468).
The Company assesses fair value using the standardised cash flows capitalisation method,
whereby cash flows consist mainly of rents received from the lease of investment property. A
0.05 percent growth (2020: 0.05 percent) and a required rate of return of 8.95 percent (2020:
8.95 percent) are assumed.
In the process of testing investment property impairment indicators, the Company found that
the carrying amount of individual investment property exceeded the fair value and value in use
of these assets. Therefore, The Company impaired investment property as at 31 December
2021 by EUR 346,304 (31 December 2020: EUR 741,708), based on internal assessments.
6.19 Investments in subsidiaries
The Petrol Group
In the preparation of the Group’s financial statements, investments in subsidiaries are
eliminated on consolidation. A more detailed overview of the Group's structure is presented in
the chapter Companies in the Petrol Group of the business report.
(in EUR)
Investment
property
Crodux derivati dva d.o.o.
120,243
New acquistions as a result of control obtained
120,243

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 265
Petrol d.d., Ljubljana
Information about direct subsidiaries as at 31 December 2021
The directly owned subsidiaries of Petrol d.d., Ljubljana are as follows:
1
Petrol d.d., Ljubljana has 76% of voting rights in the company Atet d.o.o.
2
The subsidiary Geoplin d.o.o. Ljubljana owns a 25-percent interest in Zagorski metalac d.o.o. In total,
the Group has a 93.57-percent interest in Zagorski metalac d.o.o.
Slovenia
IGES d.o.o. Dunajska cesta 50, Ljubljana, Slovenia 100% 15,829,559 16,323
Petrol Skladčenje d.o.o. Zaloška 259, Ljubljana Polje, Slovenia 100% 815,957 (406)
Petrol GEO d.o.o. Mlinska ulica 5d, Lendava, Slovenia 100% 2,187,429 1,319,361
Ekoen d.o.o. Luče 117A, Luče, Slovenia 100% 777,662 10,054
Ekoen S d.o.o. Ljubljanska cesta 35, Domžale, Slovenia 100% 15,330 7,015
MBills d.o.o. Tka cesta 118, Ljubljana, Slovenia 100% 4,545,214 (1,125,601)
Geoplin d.o.o. Ljubljana
Cesta Ljubljanske brigade 11, Ljubljana,
Slovenia 74.28% 157,991,783 17,507,250
Atet d.o.o.
1
Devova ulica 6A, Ljubljana, Slovenia 72.96% 2,169,734 288,833
E 3, d.o.o. Prvomajska ulica 21, Nova Gorica, Slovenia 100% 15,760,804 579,292
Croatia
Petrol d.o.o. Oreškovićeva 6H, Zagreb, Croatia 100% 208,248,827 22,859,316
Crodux derivati dva d.o.o. Savska Opatovina 36, Zagreb, Croatia 100% 38,463,615 11,974,800
Vjetroelektrane Glunča d.o.o. Krapanjska cesta 8, Šibenik, Croatia 100% 11,796,227 1,311,943
Vjetroelektrana Ljubač d.o.o. Krapanjska cesta 8, Šibenik, Croatia 100% 7,899,024 523,514
Zagorski metalac d.o.o.
2
Celine 2, Zabok, Croatia 75% 9,125,420 381,981
Serbia
Petrol d.o.o. Beograd Ulica Patrijarha Dimitrija 12v, Beograd, Serbia 100% 32,297,689 3,167,892
Beogas d.o.o. Beograd Ulica Patrijarha Dimitrija 12v, Beograd, Serbia 100% 21,447,355 2,044,124
Petrol LPG d.o.o. Ulica Patrijarha Dimitrija 12v, Beograd, Serbia 100% 10,756,386 (117,091)
STH Energy d.o.o. Kraljevo Miloša Velikog 52-2/14, Kraljevo, Serbia 80% 515,474 (32,731)
Montenegro
Petrol Crna Gora MNE d.o.o. Josipa Broza Tita 19, Podgorica, Montenegro 100% 21,549,882 1,213,769
Other countries
Petrol BH Oil Company d.o.o. Sarajevo
Tešanjska 24 a, Sarajevo, Bosnia and
Herzegovina 100% 69,110,614 3,485,218
Petrol Hidroenergija d.o.o. Teslić
Branka Radičevića 1, Teslić, Bosnia and
Herzegovina 80% 7,195,384 562,821
Petrol Power d.o.o. Sarajevo
Tešanjska 24a, Sarajevo, Bosnia and
Herzegovina 99.75% (1,945,272) (202,272)
Petrol Trade
Handelsgesellschaft m.b.H.
Elisabethstrasse 10 Top 4 u.5, Vienna,
Austria 100% 1,999,904 438,820
Petrol-Energetika DOOEL Skopje Ul. Sv. Kiril i Metodij 20, Skopje, Macedonia 100% 111,118 1,661
Petrol Bucharest ROM S.R.L.
B-dul Tudor Vladimirescu 22, Sector 5,
Bucharest, Romania 100% (84,759) 3,253
Petrol-OTI-Terminal L.L.C. Miradi e Epeme b.b., Kosovo Polje, Kosovo 100% 8,561,507 2,877
Equity as at
31 Dece mber
2021 (in EUR)Address of subsidiary
Ownership
interest
Net profit or loss
for 2021 (in EUR)Name of subsidiary

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 266
Information about indirect subsidiaries as at 31 December 2021
The companies Petrol LPG d.o.o. Beograd, Petrol d.o.o. Beograd, Petrol d.o.o., Geoplin d.o.o.
and Ekoen d.o.o. are the controlling companies of the Petrol LPG Group, the Petrol Beograd
Group, the IGES Group, the Petrol Zagreb Group, the Geoplin Group and the Ekoen Group,
respectively. The subsidiaries from these groups are presented in the table below.
1
The company is in bankruptcy proceedings.
Address of subsidiary
The Petrol LPG Group
Tigar Petrol d.o.o. Beograd Kosovska 17, Beograd (Stari Grad), Serbia 100% (324,190) (111,421)
Petrol LPG HIB d.o.o.
Preduzetnička zona bb, Šamac, Bosnia and
Herzegovina 100% (77,861) 54,823
The Petrol Beograd Group
Petrol Lumennis PB JO d.o.o. Beograd Patrijarha Dimitrija 12v, Beograd, Serbia 100% 1,155 996
Petrol Lumennis VS d.o.o. Beograd Patrijarha Dimitrija 12v, Beograd, Serbia 100% 1,117 858
Petrol Lumennis ZA JO d.o.o. Beograd
Omladinskih brigada 88-90, Novi Beograd,
Serbia 100% 685 684
Petrol Lumennis ŠI JO d.o.o. Beograd
Omladinskih brigada 88-90, Novi Beograd,
Serbia 100% 66 65
Petrol Lumennis ŠI JO d.o.o. Beograd
Omladinskih brigada 88-90, Novi Beograd,
Serbia 100% 1 -
The IGES Group
Vitales d.o.o. Bihać - u stečaju
1
Naselje Ripač b.b., Bihać, Bosnia and
Herzegovina 100% - -
The Petrol Zagreb Group
Petrol javna rasvjeta d.o.o. Oreškovićeva 6h, Zagreb, Croatia 100% 71,388 29,213
ADRIA-PLIN d.o.o. Ulica Stinice 15, Kastel Gomilica, Croatia 75% 72,795 (88,370)
The Geoplin Group
Geocom d.o.o.
Cesta Ljubljanske brigade 11, Ljubljana,
Slovenia 100% 432,226 -
Geoplin d.o.o. Radnička cesta 39, Zagreb, Croatia 100% 1,389,562 556,565
Geoplin d.o.o. Beograd
Zelenogorska ulica broj 1g, 11070 Novi
Beograd, Serbia 100% 37,994 -
The Ekoen Group
Ekoen GG d.o.o. Luče 117a, Luče, Slovenia 100% (31,327) (19,465)
Net profit or loss
for 2021 (in EUR)Name of subsidiary
Ownership
interest
Equity as at
31 Dece mber
2021 (in EUR)

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 267
Balance of investments in subsidiaries
The impact of changes in the discount rate or long-term growth rate of residual free cash flow
on the estimated fair value of investments is shown below:
Year 2020
(in EUR)
31 December
2021
31 December
2020
Crodux derivati dva d.o.o. 191,700,000 -
Petrol d.o.o. 136,133,985 136,133,985
Geoplin d.o.o. Ljubljana 56,901,637 56,901,637
Petrol BH Oil Company d.o.o. Sarajevo 34,537,990 34,537,990
Petrol d.o.o. Beograd 23,602,819 23,602,819
Petrol Crna Gora MNE d.o.o. 19,396,000 19,396,000
IGES d.o.o. 15,774,400 15,774,400
E 3, d.o.o. 14,950,000 -
Beogas d.o.o. Beograd 12,774,000 12,774,000
Vjetroelektrarna Ljubač d.o.o. 9,056,761 1,556,760
Zagorski metalac d.o.o. 7,600,316 7,921,915
Vjetroelektrane Glunča d.o.o. 6,523,622 6,523,622
MBills d.o.o. 5,955,122 12,128,514
Petrol Hidroenergija d.o.o. Teslić 5,000,409 5,000,409
Petrol LPG d.o.o. 4,770,601 9,457,948
Atet d.o.o. 4,044,396 4,044,396
Petrol - OTI - Terminal L.L.C. 1,805,000 1,805,000
Ekoen d.o.o. 1,249,867 1,249,867
Petrol Skladiščenje d.o.o. 794,951 794,951
Petrol GEO d.o.o. 697,020 697,020
STH Energy d.o.o. Kraljevo 467,868 467,868
Petrol Trade Handelsgesellschaft m.b.H. 147,830 147,830
Ekoen S d.o.o. 50,737 50,737
Petrol-Energetika DOOEL Skopje 25,000 25,000
Petrol Bucharest ROM S.R.L. 10,000 10,000
Petrol Praha CZ S.R.O. - 9,958
Petrol Trade Slovenija L.L.C. - 1,000
Petrol Power d.o.o. Sarajevo - -
Total investments in subsidiaries
553,970,331
351,013,627
Petrol d.d.
(in EUR thousand)
Long-term
growth rate (g)
Discount rate
(WACC)
Long-term
growth rate (g)
+ 0.5 - 0.5 (6,879) (8,016) (17,348) -
- 0.5 + 0.5 7,687 8,960 21,669 -
+ 0.5 - 0.25 (2,700) (2,100) (500) -
- 0.5 +0.25 3,000 2,400 5,500 -
+ 0.5 - 0.5 (1,300) (1,000) (2,200) (896)
- 0.5 + 0.5 1,400 1,000 2,600 -
+ 0.5 - 0.5 (512) (439) (872) -
- 0.5 + 0.5 629 538 1,315 -
+ 0.5 - 0.5 (234) (151) (368) (368)
- 0.5 + 0.5 257 166 445 -
+ 0.5 - 0.5 (109) (86) (180) (180)
- 0.5 + 0.5 133 106 268
+ 0.5 - 0.5 (798) (598) (1,317) (1,161)
- 0.5 + 0.5 912 684 1,716 -
+ 0.5 - 0.5 (3,252) (2,370) (5,302) -
- 0.5 + 0.5 3,711 2,709 6,898 -
+ 0.5 - (549) - (549) -
- 0.5 - 573 - 573 -
+ 0.5 - (1,444) - (1,444) (692)
- 0.5 - 1,550 - 1,550 -
+ 0.5 - (175) - (175) -
- 0.5 - 182 - 182 -
7.00% 2%
Atet d.o.o.
Ekoen d.o.o.
30.00%
;
Key assumptions
Discount rate
(WACC)
9.80%
;
0%
2%
2%10.90%
9.60%
10.70%
1%
5.90%
;
2.20%
1.70%
-
9.50%
6.90%
9.00%
10.30%
9.50%
2.20%
-
-
8.50%
Petrol Hidroenergija d.o.o. Teslić
Geoplin d.o.o. Ljubljana
Petrol d.o.o. Beograd
Petrol Crna Gora MNE d.o.o.
9.38%
Zagorski metalac d.o.o.
Vjetroelektrane Ljubač d.o.o.
Vjetroelektrana Glunča d.o.o.
MBills d.o.o.
Petrol d.o.o.
Effect on
impairment
when key
assumtions
cha nge
Change in key assumptions
Effect of change
in the discount
rate on the
recoverable
amount
Effect of cha nge
in the long-term
growth rate on
the recove ra ble
amount
Effect of change
in the discount
rate and the
long-term
growth rate on
the recoverable
amount

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 268
Year 2021
Changes in investments in subsidiaries
Major new acquisitions of investments in subsidiaries were as follows in 2021:
- Acquisition of a 100-percent interest in Crodux derivati dva d.o.o. totalling EUR
191,700,000. The impact on the Group's financial statements is presented in Note 6.1;
- Acquisition of a 100-percent interest in E 3, d.o.o. totalling EUR 14,950,000. The impact
on the Group's financial statements is presented in Note 6.1;
- Capital increase of Vjetroelektrarna Ljubač d.o.o. totalling EUR 7,500,000.
In accordance with IAS 36, the Company performed reviewed the investment impairment
indicators and found that the carrying amount of investments of subsidiaries MBills d.o.o.,
Petrol LPG d.o.o. and Zagorski metalac d.o.o. exceeds their fair value or value in use. Due to
this, the Company impaired the investments on the basis of valuations by EUR 11,182,338,
specifically the investment in the subsidiary MBills d.o.o. by EUR 6,173,392, an investment in
Petrol LPG d.o.o. by EUR 4,687,347 and an investment in Zagorski metalac d.o.o. by 321,599
EUR. In 2021, the Company impaired two companies that were liquidated in 2021. Petrol Praha
CZ S.R.O. was impaired by EUR 9,958 and Petrol Trade Slovenija L.L.C by EUR 1,000. In
2021, the Company impaired investments in subsidiaries by EUR 11,193,296.
For MBills d.o.o. an estimate of free cash flow for a 5-year period, after which normalised cash
flow is taken into account, was used in testing goodwill for impairment. The cash flow forecast
period takes into account the company's operations and investment activities. The required
rate of return of 24.01 percent after taxes was used in the calculation (2020: 19.8 percent).
The observed annual growth rate of the remaining free cash flow (the residual value) was 2
percent (2020: 2 percent). In 2020, the investment in MBills d.o.o. was not impaired.
(in EUR thousand)
Long-term
growth rate (g)
Discount rate
(WACC)
Long-term
growth rate (g)
+ 0.5 - 0.5 (27,282) (21,776) (45,837) -
- 0.5 + 0.5 31,836 25,404 62,374 -
+ 0.5 - 0.5 (10,420) (13,045) (22,636) -
Crodux derivati dva d.o.o. - 0.5 + 0.5 11,269 14,097 26,415 -
+ 0.5 - 0.5 (6,137) (3,726) (9,278) (5,855)
- 0.5 + 0.5 7,131 4,286 12,315 -
+ 0.5 - 0.5 (1,255) (548) (1,734) (1,297)
- 0.5 + 0.5 1,386 607 2,089 -
+ 0.5 - 0.5 (1,220) (7,037) (2,193) (3,220)
E 3, d.o.o. - 0.5 + 0.5 1,422 (4,599) 2,976 395
+ 0.5 - (1,413) - (1,413) -
- 0.5 - 1,507 - 1,507 -
+ 0.5 - 0.5 (292) (335) (582) (898)
- 0.5 + 0.5 345 397 817 -
+ 0.5 - (544) - (544) -
- 0.5 - 570 - 570 -
+ 0.5 - 0.5 (165) (124) (278) (278)
- 0.5 + 0.5 183 137 335 -
+ 0.5 - (182) - (182) -
- 0.5 - 194 - 194 -
+ 0.5 - 0.5 (534) (397) (888) (791)
- 0.5 + 0.5 593 440 1,091 -
+ 0.5 - 0.5 (588) (483) (988) (185)
- 0.5 + 0.5 708 582 1,437 -
;
11.70% 2%
Atet d.o.o. 7.40% 2%
Petrol LPG d.o.o. 11.20%
;
14.03% 2%
Petrol Hidroenergija d.o.o. Teslić 9.10% -
MBills d.o.o. 24.04%
;
8.00% 2%
Vjetroelektrana Glunča d.o.o. 8.70% -
Zagorski metalac d.o.o. 6.80%
1.90%
Vjetroelektrane Ljubač d.o.o. 8.70% -
8.50%
9.30% 2.20%
Petrol Crna Gora MNE d.o.o. 11.50% 1.70%
Petrol d.o.o. Beograd
Petrol d.o.o.
Change in key assumptions
Effect of change
in the discount
rate on the
recoverable
amount
Effect of cha nge
in the long-term
growth ra te on
the recoverable
amount
Effect of change
in the discount
rate and the
long-term
growth rate on
the recoverable
amount
Effect on
impairment
when key
assumtions
cha nge
Key assumptions
Discount rate
(WACC)
8.50% 2%
10.00%
;
12.00% -0.90%
(in EUR)
2021 2020
As at 1 January 351,013,627 341,346,801
New acquisitions
214,150,000
10,826,202
Impairment
(11,193,296)
(1,159,376)
As at 31 December
553,970,331
351,013,627
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 269
For Petrol LPG d.o.o. an estimate of free cash flow for a 5-year period, after which normalised
cash flow is taken into account, was used in testing goodwill for impairment. The cash flow
forecast period takes into account the company's operations and investment activities. The
required rate of return of 11.7 percent after taxes was used in the calculation. The observed
annual growth rate of the remaining free cash flow (the residual value) was 2 percent. In 2020,
the investment in Petrol LPG d.o.o. was not impaired.
For Zagorski metalac d.o.o an estimate of free cash flow for a 5-year period, after which
normalised cash flow is taken into account, was used in testing goodwill for impairment. The
cash flow forecast period takes into account the company's operations and investment
activities. The required rate of return of 8 percent after taxes was used in the calculation (2020:
10.3 percent). The observed annual growth rate of the remaining free cash flow (the residual
value) was 0 percent (2020: 0 percent). In 2020, the investment in Zagorski metalac d.o.o. was
impaired by EUR 492,750.
In 2020, when testing impairment indicators of investments in subsidiaries, the Company
impaired them by EUR 1,159,376.
Major new acquisitions of investments in subsidiaries were as follows in 2020:
- Acquisition of a 100-percent interest in Petrol-OTI-Terminal L.L.C totalling EUR 1,805,000.
The impact on the Group's financial statements is presented in Note 6.1;
- Purchase of a minority interest in the subsidiary Petrol LPG d.o.o. Beograd totalling EUR
7,464,190, with the Company thus becoming the sole owner of the subsidiary.
- Increase of the holding in MBills d.o.o. by EUR 1,089,514, with the Company thus
becoming the sole owner of the subsidiary.
- Capital increase of STH Energy d.o.o. totalling EUR 467,498.
Options contracts
The agreement on the exchange of interests in Plinhold d.o.o. for interests in Geoplin entered
into with the Republic of Slovenia on 29 December 2017 envisages a second stage of the
exchange to take place following the fulfilment of suspensive conditions. During this second
stage of exchanging the interests, Petrol d.d., Ljubljana will acquire a 25.01-percent interest in
Geoplin d.o.o. in exchange for the 16.98-percent holding in Plinhold d.o.o. that it had disposed
of.
If the second stage under the above agreement on the exchange of interests and the
acquisition of interests from other stakeholders is carried out in full, it will cause the non-
controlling interest in the equity of the Petrol Group to decrease by EUR 39,688,636.
In addition to a contract for the acquisition of a 76-percent interest in Atet d.o.o. of July 2019,
an options contract was signed with the seller under which Petrol d.d., Ljubljana has an option
to acquire the remaining interest in Atet d.o.o. in the period from 1 May 2022 to 30 July 2022.
The seller, on the other hand, has a put option to sell the remaining interest in the period from
31 July 2022 to 31 October 2022.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 270
6.20 Investments in jointly controlled entities
A more detailed overview of the Group's structure is presented in chapter Companies in the
Petrol Group of the business report.
Information about jointly controlled entities as at 31 December 2021
After analysing the contracts of members of jointly controlled entities, the Group/Company
established that it does not control those entities, disclosing them as investments in jointly
controlled entities as a result.
Balance of investments in jointly controlled entities
The Petrol Group
Changes in investments in jointly controlled entities
In conformity with the equity method, the Group recorded attributable profit of EUR 300,040 in
2021 (2020: EUR 124,978). From this amount, dividends on retained earnings, which stood at
EUR 135,495 (2020: EUR 172,934) were deducted.
In 2021, the Group sold its interest in the jointly controlled entity Vjetroelektrana Dazlina d.o.o.
The Group increased the capital of the jointly controlled entity Petrol OTI Slovenija L.L.C. in
2020 by converting financial receivables to equity. The company was sold at the end of 2020.
31 December
2021
31 De ce mber
2020
Slovenia
Geoenergo d.o.o. Mlinska ulica 5, Lendava, Slovenia 50% 50%
Soenergetika d.o.o. Stara cesta 3, Kranj, Slovenia 25% 25%
Other countries
Vjetroelektrana Dazlina d.o.o. Krapanjska cesta 8, Šibenik, Croatia - 50%
Ownership and voting rights
Name of jointly controlled entity Addre ss of jointly controlled entity Business a ctivities
Extraction of natural gas, oil and gas
condensate
Electricity, gas and steam supply
Electricity production
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Soenergetika d.o.o. 417,259 440,084 210,000 210,000
Geoenergo d.o.o. 287,242 99,872 - -
Vjetroelektrana Dazlina d.o.o. - 22,060 - 23,000
Total investments in jointly controlled entities
704,501
562,016
210,000
233,000
Petrol d.d.The Petrol Group
(in EUR)
2021 2020
As at 1 January 562,016 610,273
Attributed profit/loss 300,040 124,978
Dividends received (135,495) (172,934)
Transfer to investments in jointly controlled entities - 915,000
Disposals (22,060) (915,000)
Foreign exchange differences - (301)
As at 31 December
704,501
562,016
The Petrol Group

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 271
The testing of investment impairment indicators applicable to investments in jointly controlled
entities identified no need for impairment in 2021 and 2020.
Significant amounts from the financial statements of jointly controlled entities
2020
2021
Petrol d.d., Ljubljana
Changes in investments in jointly controlled entities
The decrease in the investment relates to Vjetroelektrana Dazlina d.o.o., which was sold by
the Group in 2021.
The increase in investments in jointly controlled entities in 2020 relates to the capital increase
of the jointly controlled entity Petrol OTI Slovenija L.L.C. by means of converting debt to capital.
The Company's financial receivables from Petrol OTI Slovenija L.L.C. were partially impaired.
Petrol OTI Slovenija L.L.C. was sold at the end of 2020.
Options contracts
The annex to the business cooperation agreement in which the sale of the investment in the
company Vjetroelektrana Dazlina d.o.o. is agreed contains a call option under which Petrol
d.d., Ljubljana has an option to acquire a 50-percent interest in Vjetroelektrana Dazlina d.o.o.
at a price of 23,000 EUR until 4 June 2022.
The original contract for the acquisition of a 50-percent interest in Vjetroelektrarna Dazlina
d.o.o. from 2017 contains a call option under which Petrol d.d., Ljubljana has an option to
acquire the remaining 50-percent interest in Vjetroelektrarna Dazlina d.o.o. at fair value. The
option is enforceable subject to suspensive conditions.
(in EUR)
Assets Liabilities (debt) Revenue Net profit or loss
Net profit or loss
attributable to the
Petrol Group
Soenergetika d.o.o. 2,321,252 641,686 3,502,343 549,244 137,311
Geoenergo d.o.o. 743,621 446,800 660,704 (22,770) (11,385)
Vjetroelektrana Dazlina d.o.o. 123,303 123,275 - (1,643) (822)
(in EUR)
Assets Liabilities (debt) Revenue Net profit or loss
Net profit or loss
attributable to the
Petrol Group
Soenergetika d.o.o. 2,106,340 518,068 3,324,841 457,950 114,487
Geoenergo d.o.o. 2,263,885 1,592,324 3,360,029 374,740 187,370
(in EUR)
2021 2020
As at 1 January 233,000 233,000
Transfer to investments in jointly controlled entities - 1,070,000
Disposals (23,000) (1,070,000)
As at 31 December
210,000
233,000
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 272
6.21 Investments in associates
A more detailed overview of the Group's structure is presented in chapter Companies in the
Petrol Group of the business report.
Information about associates as at 31 December 2021
Balance of investments in associates
The Petrol Group
Changes in investments in associates
In 2021, in conformity with the equity method, the Group attributed the corresponding share of
2021 profits or losses to its investments, in total EUR 2,283,731 (2020: EUR 3,383,812 EUR),
deducting from the investments the dividends received of EUR 1,403,355 (2020: EUR
1,328,681).
31 December
2021
31 De ce mber
2020
Slovenia
Plinhold d.o.o. Mala ulica 5, Ljubljana, Slovenia 30% 30%
Aquasystems d.o.o. Dupleška cesta 330, Maribor, Slovenia 26% 26%
Knca d.o.o. Kneža 78, Most na Soči, Slovenia 47.27% -
Other countries
Ivicom Energy d.o.o. Jug Bogdanova 2, Žagubica, Serbia - 25%
Ownership and voting rights
Name of associate Address of associate Business activities
Management of gas infrastructure
Construction and operation of industrial
and municipal water treatment plants
Electricity production
Electricity production
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Plinhold d.o.o. 53,090,764 52,230,606 26,273,425 26,273,425
Aquasystems d.o.o. 1,211,955 1,161,062 337,052 337,051
Knešca d.o.o. 866,907 - - -
Ivicom Energy d.o.o. - 2,561,723 - 2,575,000
Total investments in associates
55,169,626
55,953,391
26,610,477
29,185,477
Petrol d.d.The Petrol Group
(in EUR)
2021 2020
As at 1 January 55,953,391 54,655,607
Attributed profit/loss 2,283,731 3,383,812
Dividends received (1,403,355) (1,328,681)
New acquisitions 894,000 -
Decrease (2,558,141) (753,977)
Foreign exchange differences - (3,370)
As at 31 December
55,169,626
55,953,391
The Petrol Group

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 273
Significant amounts from the financial statements of associates
2020
2021
Petrol d.d., Ljubljana
Changes in investments in associates
The decrease in investments in associates in 2021 is the result of the sale of Ivicom Energy
d.o.o. at book value in accordance with the put option from the purchase agreement of a 25-
percent interest in Ivicom Energy d.o.o.
The decrease in 2020 refers to the reduction of share capital in Aquasystems d.o.o.
Options contracts
The agreement on the exchange of interests in Plinhold d.o.o. for interests in Geoplin d.o.o.
Ljubljana entered into with the Republic of Slovenia on 29 December 2017 envisages a second
stage of the exchange to take place following the fulfilment of suspensive conditions. During
this second stage of exchanging the interests, Petrol d.d., Ljubljana will acquire a 25.01-
percent interest in Geoplin d.o.o. in exchange for the 16.98-percent holding in Plinhold d.o.o.
that it had disposed of.
(in EUR)
Assets Liabilities (debt) Revenue Net profit or loss
Net profit or loss
attributable to
the Petrol Group
Plinhold d.o.o. 322,500,000 109,200,000 45,100,000 8,400,000 2,494,674
Aquasystems d.o.o. 9,464,133 5,141,692 7,873,217 2,938,298 763,957
Ivicom Energy d.o.o. 1,313,246 1,393,881 127 (85,717) (21,429)
(in EUR)
Assets Liabilities (debt) Revenue Net profit or loss
Net profit or loss
attributable to
the Petrol Group
Plinhold d.o.o. 328,700,000 112,900,000 58,800,000 4,500,000 1,336,433
Aquasystems d.o.o. 7,967,703 3,397,011 7,932,017 3,080,437 800,914
Knešca d.o.o. 1,438,741 109,072 297,124 101,598 48,026
(in EUR)
2021 2020
As at 1 January 29,185,477 29,939,454
Decrease (2,575,000) (753,977)
As at 31 December
26,610,477
29,185,477
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 274
6.22 Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income stand for investments in
the shares and interests of companies and banks, as well as investments in mutual funds and
bonds.
Balance of financial assets at fair value through other comprehensive income
Changes in financial assets at fair value through other comprehensive income
The Petrol Group and Petrol d.d., Ljubljana
The Group’s/Company's financial assets at fair value through other comprehensive income are
carried at fair value.
6.23 Non-current financial receivables
Balance of non-current financial receivables
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Current balance of financial assets at fair value
through other comprehensive income
Assets arising from interest rate swaps 1,420,486 - 1,078,208 -
Bonds 334,077 - - -
Assets arising from commodity swaps 22,238 209,094 22,238 209,094
1,776,801 209,094 1,100,446 209,094
Non-current balance of financial assets at fair value
through other comprehensive income
Shares of companies
2,068,908
2,068,908
1,871,378
1,871,378
Interests in companies
2,064,136
2,064,136
246,536
246,536
Bonds
-
395,943
-
-
4,133,044 4,528,987 2,117,914 2,117,914
Total financial assets at fair value through other
comprehensive income
5,909,845 4,738,081 3,218,360 2,327,008
The Petrol Group
Petrol d.d.
(in EUR)
2021 2020 2021 2020
As at 1 January 4,528,987 4,528,987 2,117,914 2,117,914
Transfer of bonds to current assets (334,077) - - -
New acquisitions - 1,398,705 - 1,398,705
Disposals - (419,612) - (419,612)
Impairment (61,866) (979,093) - (979,093)
As at 31 December
4,133,044
4,528,987
2,117,914
2,117,914
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Loans and other financial receivables
991,831
2,680,471
83,299,185
58,124,422
Total non-current financial receivables
991,831
2,680,471
83,299,185
58,124,422
The Petrol Group
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 275
The Petrol Group
Changes in non-current financial receivables
Petrol d.d., Ljubljana
Non-current financial receivables of EUR 83,299,185 (31 December 2020: EUR 58,124,422)
comprise non-current financial receivables from Group companies totalling EUR 83,233,789
(31 December 2020: EUR 56,492,385) and non-current financial receivables from others
equalling EUR 65,396 (31 December 2020: EUR 1,632,037).
Non-current financial receivables from Group companies are presented in the table below.
Changes in non-current financial receivables
(in EUR)
2021
2020
As at 1 January
2,680,471
5,017,649
New acquisitions as a result of control obtained
2,656
-
New loans
8,231
5,840,755
Loans repaid
(1,602,313)
(6,552,298)
Transfer to current financial receivables
(100,259)
(1,625,976)
Foreign exchange differences
3,045
341
As at 31 December
991,831
2,680,471
The Petrol Group
(in EUR)
2021 2020
Non-current financial receivables from Group companies
Crodux derivati dva d.o.o. 25,980,522 -
Vjetroelektrarna Ljubač d.o.o. 25,786,626 25,786,626
Petrol d.o.o. Beograd 16,200,000 17,200,000
Petrol Crna Gora MNE d.o.o. 7,500,000 7,500,000
Petrol LPG d.o.o. 6,000,000 4,205,918
STH Energy d.o.o. Kraljevo 1,402,492 1,402,492
Ekoen d.o.o. 266,400 299,600
Ekoen S d.o.o. 97,749 97,749
Total
83,233,789
56,492,385
Petrol d.d.
(in EUR)
2021 2020
As at 1 January 58,124,422 31,876,297
New loans 28,602,580 35,414,891
Loans repaid (3,673,270) (7,964,009)
Reversal of impairment 343,056 -
Transfer to current financial receivables (97,603) (1,202,757)
As at 31 December
83,299,185
58,124,422
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 276
6.24 Non-current operating receivables
The majority of non-current operating receivables consist of the receivables due to Petrol d.d.,
Ljubljana.
The Petrol Group and Petrol d.d., Ljubljana
Non-current operating receivables from companies include EUR 1,214,651, which refers to
receivables arising from assets allocated over the long term for the restructuring of the
company Nafta Lendava, d.o.o. that Petrol d.d., Ljubljana was obliged to provide under an
agreement concluded with the Government of the Republic of Slovenia. Because the
repayment of the non-current operating receivables is contingent on the generation and
distribution of profit of the company Geoenergo d.o.o., an allowance was made for the entire
receivable.
Other receivables of the Group in the amount of EUR 8,226,580 (2020: EUR 10,516,196) refer
to the non-current portion of receivables arising from selling solar power plants on instalment
plans and likewise other receivables of the Company in the amount of EUR 8,218,927 (2020:
EUR 10,502,758), and to other receivables.
6.25 Inventories
The Petrol Group
The Group has no inventories that are pledged as security for liabilities.
After checking the value of goods inventories as at 31 December 2021, the Group determined
that the carrying amount of certain products exceeded their recoverable amount.
Consequently, the Group revalued the inventories with a net realisable value, i.e. the estimated
selling price in the ordinary course of business less the estimated costs to sell, that was lower
than their carrying amount by EUR 7,205,752 (2020: EUR 7,331,973) to match their net
realisable value. taking into account the market prices as at the date of the financial
statements.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Receivables from companies 1,216,662 1,224,114 1,214,651 1,214,651
Allowance for receivables from companies (1,214,651) (1,214,651) (1,214,651) (1,214,651)
Receivables from municipalities 180 39,656 180 39,656
Other receivables 8,226,580 10,516,196 8,218,927 10,502,758
Total non-current operating receivables
8,228,771
10,565,315
8,219,107
10,542,414
The Petrol Group Petrol d.d.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Spare parts and materials 9,990,768 2,430,425 2,393,989 2,152,317
Merchandise: 168,200,520 137,723,770 94,179,250 85,378,313
- fuel
109,844,027 71,457,024 64,589,822 56,735,413
- other petroleum products
98,160 525,972 95,334 118,045
- other merchandise
58,258,333 65,740,774 29,494,094 28,524,855
Total inventories
178,191,288
140,154,195
96,573,239
87,530,630
The Petrol Group Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 277
Petrol d.d., Ljubljana
The Company has no inventories that are pledged as security for liabilities.
After checking the value of goods inventories as at 31 December 2021, the Company
determined that the net realisable value of the inventories was higher than the cost of goods,
which is why it did not impair their value in 2021. In 2020, the Company did not impair its
inventories.
6.26 Current financial receivables
The Petrol Group
In addition to the loans of EUR 2,040,672 granted by Petrol d.d., Ljubljana to others (for an
explanation, see the disclosure relating to the Company), the loans granted include short-term
loans of EUR 17,330,743 (EUR 31,269,343 as at 31 December 2020) granted to other
companies, mainly in connection with the payment of goods delivered.
Due to a change in the estimated value of collaterals for loans granted, the Group reversed
the adjustment to the value of the loans and interest by EUR 2,588,783 in 2021. In 2020, the
value of the adjustment decreased by EUR 1,043,872 relative to the previous period.
Petrol d.d., Ljubljana
Short-term loans to companies of EUR 16,427,850 (EUR 23,050,622 as at 31 December 2020)
include the short-term portion of loans to Group companies totalling EUR 14,387,178 (EUR
20,978,017 as at 31 December 2020) and short-term loans to others equalling EUR 2,040,672
(EUR 2,003,804 as at 31 December 2020). In 2020, loans to the jointly controlled entity
Vjetroelektrarna Dazlina in the amount of EUR 68,800.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Loans granted 19,371,415 33,341,947 16,427,850 23,050,622
Adjustment to the value of loans granted (3,751,210) (1,330,433) (1,285,380) (1,285,380)
Time deposits with banks (3 months to 1 year) 517,546 593,958 - -
Interest receivables 293,088 122,759 5,424,514 5,000,553
Allowance for interest receivables (262,147) (94,141) (4,385,935) (4,518,069)
Total current financial receivables
16,168,692
32,634,090
16,181,049
22,247,726
The Petrol Group Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 278
Short-term loans to Group companies are presented below.
Short-term loans to others of EUR 2,040,627 refer to loans to companies for the payment of
goods delivered of EUR 1,723,403 (EUR 1,679,335 as at 31 December 2020) and other loans
of EUR 317,269 (EUR 324,469 as at 31 December 2020). The Company did not have loans
arising from the sale of financial instruments as at 31 December 2021 nor did it have such
loans as at 31 December 2020.
In 2021, the adjustment to the value of interest receivables in the amount of EUR 132,134 was
eliminated and is the result of interest payments. In 2020, the decrease in the allowance for
current receivables is the result of a loan granted to a jointly controlled entity and of the
allowance being transferred to an investment in a jointly controlled entity that was sold at the
end of 2020.
6.27 Current operating receivables
Other operating receivables are mainly receivables from banks from card operations. The
changes in allowances are presented in Note 7.1.
6.28 Contract assets
The Petrol Group and Petrol d.d., Ljubljana
Contract assets refer to short-term accrued revenue from merchandise. Accrued revenue as
at 31 December 2021 stood at EUR 3,338,893 (2020: EUR 1,949,652) in the case of the Group
and at EUR 7,604,649 (2020: EUR 3,276,761) in the case of Petrol d.d., Ljubljana.
Contract assets were not impaired.
(in EUR)
31 December
2021
31 December
2020
Loans to Group companies
E 3, d.o.o. 7,600,000 -
Petrol Power d.o.o. Sarajevo 3,562,233 3,562,233
Atet d.o.o. 2,320,986 1,306,671
Petrol Bucharest ROM S.R.L. 583,234 687,300
Vjetroelektrarna Ljubač d.o.o. 258,500 258,500
Ekoen d.o.o. 33,200 33,200
Ekoen S d.o.o. 19,550 19,550
Petrol Oti Terminali d.o.o. 9,475 -
Geoplin d.o.o. Ljubljana - 15,000,000
Petrol Praha CZ s.r.o. - 100,563
Petrol Trade Slovenija L.L.C. - 10,000
Total
14,387,178
20,978,017
Petrol d.d.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Trade receivables 692,538,011 406,289,815 409,335,386 262,238,768
Allowance for trade receivables (57,553,745) (49,921,950) (31,098,414) (30,657,864)
Operating receivables from state and other institutions 5,450,026 2,511,467 244,934 217,146
Operating interest receivables 1,364,467 1,338,849 2,335,796 2,484,533
Allowance for interest receivables (1,192,941) (1,214,106) (943,204) (1,059,184)
Receivables from insurance companies (loss events) 67,157 143,214 45,955 28,473
Other operating receivables 10,997,013 8,227,167 6,734,226 5,018,992
Allowance for other receivables (1,326,808) (933,017) (824,788) (551,988)
Total current operating receivables
650,343,180
366,441,439
385,829,891
237,718,876
The Petrol Group Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 279
6.29 Financial assets at fair value through profit or loss
The Petrol Group and Petrol d.d., Ljubljana
Financial assets arising from commodity swaps represent the fair values of outstanding
commodity swap contracts for the purchase of petroleum products and electricity as at 31
December 2021.
All of the above financial assets arising from derivative financial instruments should be
considered in conjunction with outstanding contracts disclosed under financial liabilities in Note
6.36.
6.30 Prepayments and other assets
6.31 Cash and cash equivalents
6.32 Equity
Called-up capital
The Company’s share capital totals EUR 52,240,977 and is divided into 2,086,301 ordinary
shares with a nominal value of EUR 25.04. All the shares have been paid up in full. All
2,086,301 ordinary shares (designated PETG) are listed on the Ljubljana Stock Exchange. The
quoted share price as at 31 December 2021 was EUR 508.00 per share (EUR 325.00 as at 31
December 2020). and the book value per share of the Group as at 31 December 2021 was
EUR 435.55 (EUR 396.24 as at 31 December 2020).
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Assets arising from commodity swaps 34,337,157 11,105,252 34,231,810 11,050,505
Assets arising from interest rate swaps 329,734 - 329,734 -
Assets arising from forward contracts - 2,636 - 2,636
Total financial assets at fair value through profit or loss 34,666,891 11,107,888 34,561,544 11,053,141
The Petrol Group Petrol d.d.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Prepayments and collaterals 61,569,731 73,803,420 34,494,898 24,677,675
Prepaid licences, subscriptions, specialised literature, etc. 3,573,415 1,579,289 2,841,366 1,390,210
Prepaid insurance premiums 1,332,648 734,485 971,052 461,928
Other deferred costs 19,242,965 2,389,316 12,421,468 842,063
Total prepayments and other assets
85,718,759
78,506,510
50,728,784
27,371,876
The Petrol Group Petrol d.d.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Cash in banks 91,918,939 79,888,438 53,148,173 39,282,462
Cash 8,293,516 6,987,005 4,419,224 5,010,879
Short-term deposits (up to 3 months) 14,435 1,799,509 - 377,184
Total cash and cash equivalents
100,226,890
88,674,952
57,567,397
44,670,525
The Petrol Group Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 280
Capital surplus
Capital surplus may be used under conditions and for the purposes stipulated by law.
The Group's capital surplus stood at EUR 80,991,385 as at 31 December 2021 and consists
of the general equity revaluation adjustment of EUR 80,080,610, which was transferred to
capital surplus on the transition to the IFRS, and the capital surplus of EUR 910,775
representing the excess of the disposal value over the carrying amount of own shares paid to
the Company's Supervisory Board members as a bonus. The Company's capital surplus as at
31 December 2021 was the same as the Group's capital surplus.
In 2021, there were no changes in capital surplus.
Revenue reserves
Legal reserves and other revenue reserves
Legal and other revenue reserves comprise shares of profit from previous years that have
been retained for a dedicated purpose, mainly for offsetting eventual future losses. Acting on
the proposal from the Company's Management Board made upon the approval of the 2021
annual report, the Company's Supervisory Board used the net profit to create other revenue
reserves of EUR 33,241,471, in accordance with Article 230 of the Companies Act.
Own shares and reserves for own shares
If the parent company or its subsidiaries acquire an ownership interest in the parent company,
the amount paid, including transaction costs less tax, is deducted from total equity in the form
of own shares until such shares are cancelled, reissued or sold. If own shares are later sold or
reissued, the consideration received is included in the equity net of transaction costs and
related tax effects.
Petrol d.d., Ljubljana
Purchases and disposals of own shares
* Amounts converted from SIT into EUR at the parity exchange rate of 239.64.
In 2021, the number of own shares remained unchanged. As at 31 December 2021, the
Company held 24,703 own shares. The market value of repurchased own shares totalled EUR
12,549,124 on the above date (EUR 8,028,475 as at 31 December 2020). The Company did
not change its reserves for own shares in 2021.
Number of
shares Cost (in EUR)*
Total purcha ses 1997 1999
36,142
3,640,782
Disposal by year
Payment of bonuses in 1997 (1,144) (104,848)
Payment of bonuses in 1998 (1,092) (98,136)
Payment of bonuses in 1999 (715) (62,189)
Payment of bonuses in 2000 (1,287) (119,609)
Payment of bonuses in 2001 (1,122) (95,252)
Payment of bonuses in 2002 (1,830) (158,256)
Payment of bonuses in 2003 (1,603) (138,625)
Payment of bonuses in 2004 (1,044) (90,284)
Payment of bonuses in 2005 (144) (15,183)
Payment of bonuses in 2006 (403) (42,492)
Payment of bonuses in 2007 (731) (77,077)
Payment of bonuses in 2008 (324) (34,162)
Total disposals 1997 2008
(11,439)
(1,036,113)
Own shares as at 31 December 2021
24,703
2,604,669

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 281
The Petrol Group
The company Geoplin d.o.o. Ljubljana owned 6,020 shares of Petrol d.d., Ljubljana as at 31
December 2021, the market value of which on that date was EUR 3,058,160 (EUR 1,956,500
as at 31 December 2020). The Group held 30,723 own shares as at 31 December 2021. The
market value of own shares was EUR 15,607,284 on the above date (EUR 9,984,975 31
December 2020).
Other reserves
Other reserves of the Group/Company consist of revaluation reserves, the fair value reserve
and the hedging reserve. Changes in these reserves that took place in 2021 are explained in
more detail in Note 6.14.
The Company's fair value reserve totalled EUR 39,809,449 as at 31 December 2021. The fair
value reserve consists of the reserves of EUR 40,513,851 resulting from the absorption of
Instalacija d.o.o. (see Note 6.15 for explanation) and the reserves of EUR 742,921 resulting
from carrying financial assets at fair value through other comprehensive income. Its value was
decreased by actuarial losses resulting from the actuarial calculation of post-employment
benefits on retirement totalling EUR 1,306,168 and deferred taxes of EUR 141,155.
Accumulated profit
Allocation of accumulated profit for 2020
At the 33rd General Meeting of the joint-stock company Petrol d.d., Ljubljana held on 22 April
2021, the shareholders adopted the following resolution on the allocation of accumulated profit:
As proposed by the Management Board and the Supervisory Board, the accumulated profit for
the financial year 2020 of EUR 45,355,156 was to be allocated in accordance with the
provisions of Articles 230, 282 and 293 of the Companies Act (ZGD-1) as the payment of gross
dividends of EUR 22.00 per share or the total of EUR 45,222,716 (own shares excluded). The
remaining accumulated profit of EUR 132,440 and any amounts linked to own shares arising
on the date the dividends are paid and amounts resulting from rounding off dividend payments
were to be transferred to other revenue reserves.
The dividends were paid out of the net profit for 2020. In 2021, the Company paid out dividends
for the year 2020 of EUR 45,222,716 and dividends from the previous years of EUR 185.
Accumulated profit for 2021
(in EUR)
31 December
2021
31 December
2020
Compulsory allocation of net profit
Net profit 66,482,942 28,893,516
Net profit after compulsory allocation
66,482,942
28,893,516
Creation of other revenue reserves 33,241,471 14,446,758
Determination of accumulated profit
Net profit 33,241,471 14,446,758
Decrease by the amount of long-term deferred development
costs on the balance sheet date (96,363) (267,376)
Other revenue reserves 28,702,832 31,175,774
Accumulated profit
61,847,940
45,355,156
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 282
Acting on the proposal from the Company's Management Board made upon the approval of
the annual report, the Company's Supervisory Board used the net profit to create other revenue
reserves of EUR 33,241,471, in accordance with Article 230 of the Companies Act, and
designated a portion of other revenue reserves of EUR 28,702,832 as accumulated profit.
Final dividends for the year ended 31 December 2021 have not yet been proposed and
confirmed by owners at a General Meeting, which is why they have not been recorded as
liabilities in these financial statements.
6.33 Provisions for employee post-employment and other long-term benefits
Provisions for employee post-employment and other long-term benefits comprise provisions
for post-employment benefits on retirement and jubilee benefits. The provisions amount to
estimated future payments for post-employment benefits on retirement and jubilee benefits
discounted to the end of the reporting period. The calculation is made separately for each
employee by taking into account the costs of post-employment benefits on retirement and the
costs of all expected jubilee benefits until retirement.
Management believes that the factors in estimating provisions for jubilee benefits and post-
employment benefits on retirement have not changed significantly compared to the previous
year. It therefore considers that the value of provisions for jubilee benefits and post-
employment benefits on retirement, calculated on the basis of the actuarial model as at 31
December 2020, is an appropriate basis for recognising provisions as at 31 December 2021.
The calculation as at 31 December 2020 was adjusted only for the number of employees.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Post-employment benefits on retirement
6,190,099
6,096,788
5,244,108
5,457,241
Jubilee benefits
3,325,992
3,342,189
2,725,701
2,836,480
Total provisions
9,516,091
9,438,977
7,969,809
8,293,721
The Petrol Group
Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 283
The Petrol Group
Changes in provisions for employee post-employment and other long-term benefits
The calculation of the provisions for employee post-employment and other long-term benefits
is based on the actuarial calculation, which relied on the following assumptions:
a 0.36-percent annual discount rate for companies in Slovenia (2020: 0.35 percent), which
is based on the yield of 10-year government bonds of the Republic of Slovenia, a 1.25-
percent discount rate for companies in Croatia (2020: 1.25 percent), a 3.25-percent
discount rate for companies in the Federation of Bosnia and Herzegovina (2020: 3.25
percent), and a 4.5-percent discount rate for companies in Serbia (2020: 4.5 percent);
the currently applicable amount of post-employment and jubilee benefits specified in
internal acts;
staff turnover, primarily depending on their age;
mortality based on the most recent mortality tables for the local population.
For companies in Slovenia it is assumed that average salaries in the Republic of Slovenia will
increase by 2 percentage points and, in addition, that individual salaries will increase by 0.5
percentage points. For companies abroad it is assumed that average salaries will increase at
the following rates: Croatia 1 percentage point, Serbia 1 percentage point, the Federation of
Bosnia and Herzegovina 1 percentage point, accompanied by a growth in individual salaries
of 0.5 percentage point.
Sensitivity analysis
(in EUR)
Post-
employment
benefits Jubilee benefits Total
As at 1 January 2020 5,853,143 3,036,568 8,889,711
Current service cost 657,457 488,601 1,146,058
Costs of interest 63,170 37,071 100,241
Post-employment benefits paid (140,129) (282,301) (422,430)
Actuarial surplus/deficit (335,716) 65,117 (270,599)
Foreign exchange differences (1,137) (2,867) (4,004)
As at 31 December 2020
6,096,788
3,342,189
9,438,977
New acquisitions as a result of control obtained 290,165 82,241 372,406
Current service cost 120,998 129,096 250,094
Costs of interest 2,259 935 3,194
Post-employment benefits paid (316,060) (227,563) (543,623)
Actuarial surplus/deficit 9,323 4,263 13,586
Reversal (13,836) (6,241) (20,077)
Foreign exchange differences 462 1,072 1,534
As at 31 December 2021
6,190,099
3,325,992
9,516,091
The Petrol Group
Change in
Change by 0.5 -0.5 0.5 -0.5 0.5 -0.5
Effect on the balance of provisions for employee post-
employment and other long-term benefits (in EUR) (561,306)
621,070 608,543
(556,225) (514,926)
571,335
Percentage point Percentage point Percentage point
Discount rate Salary increase Staff turnover

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 284
Petrol d.d., Ljubljana
Changes in provisions for employee post-employment and other long-term benefits
The calculation of the provisions for employee post-employment and other long-term benefits
is based on the actuarial calculation, which relied on the following assumptions:
a 0.36-percent annual discount rate (2020: 0.35 percent), which is based on the yield of
10-year government bonds of the Republic of Slovenia;
the currently applicable amount of post-employment and jubilee benefits specified in
internal acts;
staff turnover, primarily depending on their age;
mortality based on the most recent mortality tables for the local population.
It is assumed that average salaries in the Republic of Slovenia will increase by 2 percentage
points and, in addition, that individual salaries will increase by 0.5 percentage point.
Sensitivity analysis
6.34 Other provisions
(in EUR)
Post-
employment
benefits Jubilee benefits Total
As at 1 January 2020 5,402,925 2,622,136 8,025,061
Current service cost 622,378 448,949 1,071,327
Post-employment benefits paid (132,033) (234,605) (366,638)
Actuarial surplus/deficit (436,029) - (436,029)
As at 31 December 2020
5,457,241
2,836,480
8,293,721
Current service cost 47,021 89,669 136,690
Post-employment benefits paid (251,076) (200,448) (451,524)
Actuarial surplus/deficit (9,078) - (9,078)
As at 31 December 2021
5,244,108
2,725,701
7,969,809
Petrol d.d.
Change in
Change by 0.5 -0.5 0.5 -0.5 0.5 -0.5
Effect on the balance of provisions for employee post-
employment and other long-term benefits (in EUR) (495,018)
547,804 535,713
(489,673) (507,490)
557,168
Percentage point Percentage point Percentage point
Discount rate Salary increase Staff turnover
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Provisions for lawsuits
956,347
600,602
493,383
420,849
Provisions for employee post-employment and other long-
term benefits at third-party managed service stations
4,040,854 4,160,465 4,040,854 4,160,465
Other provisions
29,326,278
26,586,354
13,072,253
10,182,523
Total provisions
34,323,479
31,347,421
17,606,490
14,763,837
The Petrol Group
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 285
Changes in provisions for lawsuits and changes in other provisions
The Petrol Group
Other provisions
As at 31 December 2021, the Group had in place long-term contracts with suppliers to
purchase natural gas and long-term contracts for the leasing of transmission and storage
capacities. New EU rules governing the single European natural gas market have led to an
expansion of short-term trading at gas hubs and make it possible to contract transport
capacities on a per month and per day basis. As a result, a different kind of sales products
appeared in the market, both as far as natural gas sales and the leasing of transmission and
storage capacities are concerned. The Group was also compelled to provide similar products
to local customers. Because the costs of meeting contractual obligations will exceed the
expected economic benefits of the contracts, negative differences will arise.
As a result, the Group has created provisions for onerous contracts relating to the leasing of
natural gas transmission and storage capacities totalling EUR 10,832,781 (2020: EUR
12,348,348). The amount was determined based on estimated economic benefits and the
costs of services under long-term contracts for the leasing of capacities and by taking into
account the utilisation of transmission capacities. The calculations were based on 8-year
projections and a discount rate of 0.0 percent (2020: 0.0 percent), which reflects the yield on
Republic of Slovenia bonds maturing in 2029.
The Group's/Company's other provisions include provisions for partial non-compliance in the
area of renewables in transport (Decree on renewable energy sources in transport) amounting
to EUR 12,953,253 as at 31 December 2021 (2020: EUR: 10,080,523). Considering its
position, technical limitations and the legislative framework, the Company took a number of
measures to step up compliance and will continue to strive for the best possible solutions for
the environment, customers and its owners.
The provisions were estimated by considering all relevant circumstances regarding conformity
with the required standards and legal aspects, and represent the management's best estimate
of how likely is the outflow of economic benefits from the Group/Company.
Because the legislation is recent, it is not possible to foresee the timeframe for the settlement
of liabilities, which is why the provisions have not been discounted.
(in EUR)
Provisions for
lawsuits Other provisions
Provisions for
lawsuits Other provisions
As at 1 January 2020 979,447 20,923,226 636,192 4,859,313
Creation of provisions
196,318
9,919,393
154,122
5,323,210
Reversal
(572,423)
(4,251,657)
(369,465)
-
Foreign exchange differences
(2,740)
(4,608)
-
-
As at 31 December 2020
600,602
26,586,354
420,849
10,182,523
New acquisitions as a result of control obtained
33,049
598,039
-
-
Creation of provisions
666,566
7,976,473
366,017
7,717,043
Reversal
(289,082)
(5,850,016)
(238,177)
(4,827,313)
Utilisation
(55,306)
-
(55,306)
-
Foreign exchange differences
518
15,428
-
-
As at 31 December 2021
956,347
29,326,278
493,383
13,072,253
The Petrol Group
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 286
The Petrol Group and Petrol d.d., Ljubljana
Provisions for lawsuits
The amount of the provisions for lawsuits is determined based on the amount of a claim or
estimated based on the expected possible amount if the actual amount is not yet known. The
Management Board determines the expected possible amount in consultation with external
law firms and checks the amount of provisions for each ongoing lawsuit on an annual basis.
The Group’s management estimates that there is a possibility that some of these lawsuits will
be lost. That is why the Group set aside long-term provisions for lawsuits and interest on
overdue amounts arising from the claims. The provisions for lawsuits totalled EUR 867,712 as
at 31 December 2021 (EUR 528,780 as at 31 December 2020) while the provisions for interest
on overdue amounts arising from the claims stood at EUR 88,635 (EUR 17,822 as at 31
December 2020).
The Company's long-term provisions for lawsuits totalled EUR 404,748 as at 31 December
2021 (EUR 403,027 as at 31 December 2020), with the provisions for interest on overdue
amounts arising from the claims amounting to EUR 88,635 (EUR 17,822 as at 31 December
2020). The provisions were created based on the lawyers' assessment of the matter.
Provisions for employee post-employment and other long-term benefits
Other provisions also include provisions for employee post-employment and other long-term
benefits relating to employees at third-party-managed service stations of the Petrol Group. The
provisions amount to estimated future payments for post-employment benefits on retirement
and jubilee benefits discounted to the end of the reporting period. The calculation is made
separately for each employee by taking into account the costs of post-employment benefits on
retirement and the costs of all expected jubilee benefits until retirement.
Changes in provisions for employee post-employment and other long-term benefits at
third-party managed service stations
(in EUR)
Post-
employment
benefits Jubilee benefits Total
As at 1 January 2020 2,031,713 1,774,582 3,806,295
Current service cost
205,837
252,809
458,646
Post-employment benefits paid
(58,998)
(174,975)
(233,973)
Actuarial surplus/deficit
129,498
-
129,498
As at 31 December 2020
2,308,050
1,852,416
4,160,466
New acquisitions as a result of merger by absorption
Current service cost
18,560
61,104
79,664
Post-employment benefits paid
(80,999)
(114,360)
(195,359)
Actuarial surplus/deficit
(3,917)
-
(3,917)
As at 31 December 2021
2,241,694
1,799,160
4,040,854
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 287
The calculation of the provisions for employee post-employment and other long-term benefits
is based on the actuarial calculation, which relied on the following assumptions:
a 0.36-percent annual discount rate (2020: 0.3 percent), which is based on the yield of the
10-year government bonds of the Republic of Slovenia;
the currently applicable amount of post-employment and jubilee benefits specified in
internal acts;
staff turnover, primarily depending on their age;
mortality based on the most recent mortality tables for the local population.
It is assumed that average salaries in the Republic of Slovenia will increase by 2 percentage
points and, in addition, that individual salaries will increase by 0.5 percentage point.
Sensitivity analysis
6.35 Long-term deferred revenue
The Petrol Group
Changes in deferred revenue
Long-term deferred revenue refers to funds received based on European projects and
cohesion funding in the area of energy solutions.
Change in
Change by 0.5 -0.5 0.5 -0.5 0.5 -0.5
Effect on the balance of provisions for employee post-
employment and other long-term benefits (in EUR) (256,357)
283,403 277,150
(253,587) 262,799
288,220
Percentage point Percentage point Percentage point
Discount rate Salary increase Staff turnover
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Long-term deferred revenue from grants
985,177
1,051,894
14,408
22,100
Other long-term deferred revenue
33,462,267
32,360,582
29,444,663
28,397,673
Total
34,447,444
33,412,476
29,459,071
28,419,773
The Petrol Group
Petrol d.d.
(in EUR)
Long-term
deferred
revenue from
environmental
assets
Long-term
deferred
revenue from
grants
Other long-term
deferred
revenue Total
As at 1 January 2020 10,771 1,011,997 24,004,477 25,027,245
Increase - 102,839 14,291,448 14,394,287
Decrease (10,771) (62,942) (5,894,207) (5,967,920)
Foreign exchange differences - - (41,136) (41,136)
As at 31 December 2020
-
1,051,894
32,360,582
33,412,476
Increase - - 6,737,636 6,737,636
Decrease - (66,717) (5,647,671) (5,714,388)
Foreign exchange differences - - 11,720 11,720
As at 31 December 2021
-
985,177
33,462,267
34,447,444

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 288
The increase in other long-term deferred revenue of EUR 6,737,636 refers to the funds
received based on European projects and cohesion funding in the area of energy solutions,
whereas the decrease of EUR 5,647,671 refers to the costs incurred on the projects for which
the funds were received.
Petrol d.d., Ljubljana
Changes in deferred revenue
6.36 Financial liabilities
The Petrol Group
In 2021, the average interest rate on short-term and long-term sources of finance (including
interest rate hedging) stood at 1.92 percent p. a. (2020: 1.68 percent p. a.).
Derivative financial instruments
Liabilities arising from forward contracts for the purchase of US dollars, which stood at EUR
287,484 represent the fair values of outstanding forward contracts as at 31 December 2021.
The above financial liabilities arising from derivative financial instruments should be considered
in conjunction with outstanding contracts disclosed under financial receivables in Note 6.29.
(in EUR)
Long-term
deferred
revenue from
environmental
assets
Long-term
deferred
revenue from
grants
Other long-term
deferred
revenue Total
As at 1 January 2020 10,771 28,600 20,424,483 20,463,854
Increase - - 13,274,077 13,274,077
Decrease (10,771) (6,500) (5,300,887) (5,318,158)
As at 31 December 2020
-
22,100
28,397,673
28,419,773
Increase - - 6,648,148 6,648,148
Decrease - (7,692) (5,601,158) (5,608,850)
As at 31 December 2021
-
14,408
29,444,663
29,459,071
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Current financial liabilities
Bank loans
61,575,727
36,621,251
61,575,727
36,620,014
Liabilities to banks arising from interest rate swaps
2,503,965
5,379,273
2,503,965
4,896,601
Liabilities to banks arising from forward contracts
287,484
786,222
287,484
786,222
Bonds issued
246,928
250,309
246,928
250,309
Liabilities arising from commodity swaps
116,341
5,029,689
116,341
5,145,357
Other liabilities arising from financial instruments
-
-
-
2,568,846
Other loans and financial liabilities
1,228,002
699,811
207,755,317
110,421,383
65,958,447
48,766,555
272,485,762
160,688,732
Non-current financial liabilities
Bank loans
389,623,422
259,249,424
339,746,359
209,427,879
Bonds issued
43,809,402
43,801,874
43,809,402
43,801,874
Loans obtained from other companies
380,171
379,762
21,000,000
29,636,850
433,812,995
303,431,060
404,555,761
282,866,603
Total financial liabilities
499,771,442
352,197,615
677,041,523
443,555,335
The Petrol Group
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 289
Bonds issued
Bond liabilities refer to the bonds issued by Petrol d.d., Ljubljana and listed on the Ljubljana
Stock Exchange as PET4 and PET5 bonds.
On 22 February 2017, Petrol d.d., Ljubljana issued PET4 bonds at the total nominal amount of
EUR 11,000,000. The bond maturity date is 22 February 2027 and the interest rate is 1.5
percent.
On 21 June 2017, Petrol d.d., Ljubljana issued PET5 bonds at the total nominal amount of
EUR 32,828,000. The interest rate is 1.2 percent p.a. The bond maturity date is 21 June 2024.
Petrol d.d., Ljubljana
In 2021, the average interest rate on short-term and long-term sources of finance (including
interest rate hedging) stood at 1.89 percent p.a. (2020: 1.56 percent p. a.). The calculation of
the average interest rate does not include interest rates on loans received by group companies.
The Company's liabilities arising from derivative financial instruments and bonds are explained
in more detail in the note pertaining to the Group.
Other financial liabilities arising from financial instruments relate entirely to the put option
granted to a subsidiary and were measured at fair value as at 31 December 2021.
Other loans obtained by the Company relate mainly to loans from Group companies amounting
to EUR 221,277,769, as shown in the table below.
Changes in financial liabilities
(in EUR)
31 December
2021
31 December
2020
Geoplin d.o.o. Ljubljana
86,950,000
29,636,849
Petrol d.o.o.
85,842,742
62,201,715
Petrol BH Oil Company d.o.o. Sarajevo
20,000,000
17,500,000
IGES d.o.o.
15,786,457
15,767,666
Petrol Trade Handelsgesellschaft m.b.H.
6,779,404
4,469,422
MBills d.o.o. 3,850,000 4,650,000
Petrol Geo d.o.o.
1,679,516
-
Geoenergo d.o.o.
300,000
300,000
Petrol Skladiščenje d.o.o.
89,650
89,616
Petrol d.o.o. Beograd
-
2,568,846
Total
221,277,769
137,184,114
Petrol d.d.
(in EUR)
2021
2020
2021
2020
As at 1 Janua ry
352,197,615
326,741,584
443,555,335
386,348,458
New acquisitions as a result of control obtained
109,787,346
54,000
-
-
Proceeds from borrowings
926,931,269
835,261,103
1,327,414,213
1,090,169,633
Repayment of borrowings
(880,837,557)
(808,314,348)
(1,085,490,136)
(1,032,414,899)
Change in fair value of financial instruments
(8,287,394)
(845,045)
(10,489,236)
(899,899)
Changes in interest liabilities
(26,583)
25,088
2,051,347
352,042
Foreign exchange differences
6,746
(724,767)
-
-
As at 31 December
499,771,442
352,197,615
677,041,523
443,555,335
Petrol d.d.
The Petrol Group

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 290
6.37 Lease liabilities
The Group's lease liabilities include liabilities arising from contracts for the leased assets, the
value of which was determined in accordance with IFRS 16.
Changes in lease liabilities
6.38 Non-current operating liabilities
All non-current operating liabilities includes the liabilities of Petrol d.d., Ljubljana.
The Petrol Group and Petrol d.d., Ljubljana
The Group's/Company's liabilities arising from assets received for administration relate largely
to property, plant and equipment received for administration from municipalities under
concession agreements. Liabilities are reduced in line with the depreciation of the assets
received for administration.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Non-current lease liabilities
92,991,633
54,397,111
26,735,533
27,608,922
Current lease liabilities
13,768,130
10,069,352
2,717,596
4,259,323
Total lease liabilities
106,759,763
64,466,463
29,453,129
31,868,245
The Petrol Group
Petrol d.d.
(in EUR)
2021
2020
2021
2020
As at 1 Janua ry
64,466,463
72,612,542
31,868,245
34,807,319
New acquisitions as a result of control obtained
49,176,771
-
-
-
Increase
11,857,655
5,753,441
1,141,233
255,541
Decrease
(6,664,393)
(4,504,367)
-
-
Interest
2,425,310
2,676,699
1,291,951
1,508,731
Lease payments
(14,481,349)
(11,674,411)
(4,848,300)
(4,703,346)
Foreign exchange differences
(20,694)
(397,441)
-
-
As at 31 December
106,759,763
64,466,463
29,453,129
31,868,245
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2021
31 December
2020
31 Decembe r
2021
31 December
2020
Liabilities arising from interests acquired 5,024,000 24,000 5,024,000 24,000
Liabilities arising from assets received for administration 637,782 703,182 637,782 703,182
Total non-current operating liabilities
5,661,782
727,182
5,661,782
727,182
The Petrol Group Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 291
6.39 Current operating liabilities
In 2021, the liabilities associated with the allocation of profit or loss increased based on the
General Meeting resolution on the payment of dividends of EUR 45,222,716 (2020: EUR
45,222,716) and decreased based on the payment of the 2020 dividends of EUR 45,222,716
(2020: EUR 45,222,706) to shareholders and the payment of dividends from previous years
totalling EUR 185 (2020: EUR 897).
6.40 Contract liabilities
6.41 Other liabilities
Other accrued costs refer to short-term provisions for onerous contracts, accrued employee
bonuses, accrued licence renewal costs, logistics costs, costs of services in connection with
energy solutions, liabilities arising from commissions and other accrued costs.
As at 31 December 2021, the Group/Company has concluded contracts with customers for the
supply of electricity for 2022. As part of the sold quantities of the Group/Company for 2022 is
not purchased at relevant prices, compared to the contract prices in sales contracts, the costs
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Trade liabilities 549,530,229 287,742,078 349,637,848 225,732,060
Excise duty liabilities 61,892,936 89,051,979 44,570,278 81,941,940
Value added tax liabilities 44,535,860 28,464,911 22,003,518 18,681,572
Liabilities to employees 9,130,848 12,264,510 5,709,649 9,700,069
Liabilities for environmental charges and contributions 8,503,921 7,074,616 8,476,548 6,574,164
Liabilities arising from interests acquired 6,597,693 1,423,471 6,100,000 1,199,650
Other liabilities to the state and other state institutions 3,758,297 3,898,273 1,181,150 1,986,390
Social security contribution liabilities 1,742,750 1,443,461 815,529 809,456
Liabilities associated with the allocation of profit or loss 775,812 775,997 775,812 775,997
Import duty liabilities 596,054 1,068,381 - -
Other liabilities 3,392,213 4,008,471 3,237,600 1,431,534
Total current operating and other liabilities
690,456,613
437,216,148
442,507,932
348,832,832
The Petrol Group Petrol d.d.
(in EUR)
31 December
2021
31 December
2020
31 Decembe r
2021
31 December
2020
Short-term prepayments and collaterals given
12,053,171
13,019,932
5,973,801
7,351,829
Deferred prepaid card revenue
2,611,155
1,665,807
1,932,037
1,478,932
Deferred revenue from rebates and discounts granted
164,018
242,107
-
-
Total contract liabilities
14,828,344
14,927,846
7,905,838
8,830,761
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Accrued annual leave expenses
3,229,710
2,613,290
1,755,565
1,784,815
Accrued motorway site lease payments
592,868
73,747
592,868
73,747
Accrued expenses for tanker demurrage
502,794
387,983
502,794
387,983
Accrued concession fee costs
433,122
366,833
316,567
366,833
Other accrued costs 50,674,221 9,804,015 44,592,856 7,555,385
Other deferred revenue
3,185,584
2,476,402
3,093,276
2,310,692
Total other liabilities
58,618,299
15,722,270
50,853,926
12,479,455
The Petrol Group
Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 292
of fulfilling contractual commitments will exceed the expected economic benefits from the
contracts. The Group/Company hedges this part of the onerous sales contracts for the supply
of electricity with commodity financial instruments, valued at EUR 24,317,853 as at 31
December 2021. This means that in 2021, the Group/Company recorded other revenue from
the valuation of commodity financial instruments in the amount of EUR 24,317,853 and other
expenses from provisions for onerous contracts in the amount of EUR 20,924,453, which
means a net positive effect on the income statement in the amount of EUR 3,393,400.
Accordingly, the Group/Company has, among other accrued costs, formed provisions from
onerous contracts for the supply of electricity in the amount of EUR 20,924,453 (2020: EUR
0). The amount was determined based on estimated economic benefits and the costs of
services under contracts for the supply of electricity. The projected market prices of electricity
for 2022 were used in the calculations.
7. Financial instruments and risk management
This chapter presents disclosures about financial instruments and risks. Risk management is
explained in the risk management section of the business report.
A report on the impact of the COVID-19 pandemic on the Petrol Group's operations and risk
management is also available in the chapter Analysis of the business performance of the Petrol
Group's operations in 2021.
7.1 Credit risk
In 2021, the Group/Company continued to actively monitor the balances of trade receivables
and to apply strict terms on which open account sales are approved, requiring an adequate
range of high-quality collaterals and pursuing the active collection of receivables.
The carrying amount of financial assets has maximum exposure to credit risks and was the
following as at 31 December 2021:
The item that was most exposed to credit risk on the reporting date was the current operating
receivables. Compared to the end of 2021, they decreased, in nominal terms, by 77 percent in
the case of the Group and 62 percent in the case of the Company.
Financial assets at fair value through profit or loss consist mainly of derivative financial
instruments.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Financial assets at fair value through other comprehensive
income 5,909,845 4,738,081 3,218,360 2,327,008
Non-current financial receivables 991,831 2,680,471 83,299,185 58,124,422
Non-current operating receivables 8,228,771 10,565,315 8,219,107 10,542,414
Contract assets 3,338,893 1,949,652 7,604,649 3,276,761
Current financial receivables 16,168,692 32,634,090 16,181,049 22,247,726
Current operating receivables (excluding rec. from the state) 644,893,154 363,929,972 385,584,957 237,501,730
Financial assets at fair value through profit or loss 34,666,891 11,107,888 34,561,544 11,053,141
Cash and cash equivalents 100,226,890 88,674,952 57,567,397 44,670,525
Total assets
814,424,967
516,280,421
596,236,248
389,743,727
The Petrol Group Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 293
The Group’s current operating receivables by maturity
The Company's current operating receivables by maturity
Changes in allowances for current operating receivables of the Group
(in EUR) Not yet due
Up to 30 days
overdue
Including 30
to 60 days
overdue
Including 60
to 90 days
overdue
More than
90 days
overdue Total
Trade receivables 314,932,992 31,695,839 5,075,314 611,619 4,052,101 356,367,865
Interest receivables 37,856 16,889 8,111 1,968 59,919 124,743
Other receivables (excluding receivables from the state) 7,374,118 55,134 3,462 4,650 - 7,437,364
Total as at 31 December 2020
322,344,966
31,767,862
5,086,887
618,237
4,112,020
363,929,972
Brea kdown by maturity
(in EUR) Not yet due
Up to 30 days
overdue
Including 30
to 60 days
overdue
Including 60
to 90 days
overdue
More than
90 days
overdue Total
Trade receivables 572,251,531 51,421,340 7,287,064 1,296,628 2,727,703 634,984,266
Interest receivables 72,904 16,001 12,008 18,108 52,505 171,526
Other receivables (excluding receivables from the state) 9,234,027 371,413 - - 131,922 9,737,362
Total as at 31 December 2021
581,558,462
51,808,754
7,299,072
1,314,736
2,912,130
644,893,154
Breakdown by maturity
(in EUR) Not yet due
Up to 30 days
overdue
Including 30
to 60 days
overdue
Including 60
to 90 days
overdue
More than
90 days
overdue Total
Trade receivables 201,953,228 9,636,626 9,019,494 961,715 10,009,841 231,580,904
Interest receivables - - - - 1,425,349 1,425,349
Other receivables (excluding receivables from the state) 4,461,687 32,808 708 274 - 4,495,477
Total as at 31 December 2020
206,414,915
9,669,434
9,020,202
961,989
11,435,190
237,501,730
Brea kdown by maturity
(in EUR) Not yet due
Up to 30 days
overdue
Including 30
to 60 days
overdue
Including 60
to 90 days
overdue
More than
90 days
overdue Total
Trade receivables 342,546,756 20,534,767 3,623,504 814,462 10,717,483 378,236,972
Interest receivables - - - - 1,392,592 1,392,592
Other receivables (excluding receivables from the state) 5,818,887 136,506 - - - 5,955,393
Total as at 31 December 2021
348,365,643
20,671,273
3,623,504
814,462
12,110,075
385,584,957
Brea kdown by maturity
(in EUR)
Allowance for
current
operating
receivables
Allowance for
current interest
receivables Total
As at 1 January 2020 (50,705,579) (1,669,414) (52,374,993)
Creation/reversal of allowances affecting profit or loss
(2,109,637)
(115,961)
(2,225,598)
Write-downs
1,853,170
571,043
2,424,213
Foreign exchange differences 107,079 226
107,305
As at 31 December 2020
(50,854,967)
(1,214,106)
(52,069,073)

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 294
Changes in allowances for current operating receivables of the Company
Collateralisation of receivables
Only high-quality collaterals, such as bank or corporate guarantees, offsetting transactions
(suppliers), credit insurance with insurance companies and mortgages, are included in the
overview of collaterals. Bills of exchange, enforcement drafts and promissory notes are
excluded because they have a lower level of collectability.
The receivable from the Group’s largest single customer stood at EUR 16,479,600 as at 31
December 2021 (the customer is a company), accounting for 2.4 percent of the Group's trade
receivables. The receivable from the Company’s largest single customer stood at EUR
(in EUR)
Allowance for
current
operating
receivables
Allowance for
current interest
receivables Total
As at 1 January 2021 (50,854,967) (1,214,106) (52,069,073)
New acquisitions as a result of control obtained (3,498,022) (150,989)
(3,649,011)
Creation/reversal of allowances affecting profit or loss
(7,966,732)
(65,643)
(8,032,375)
Changes in allowances not affecting profit or loss
531,773
115,229
647,002
Write-downs
2,919,772
126,043
3,045,815
Foreign exchange differences (12,377) (3,475)
(15,852)
As at 31 December 2021
(58,880,553)
(1,192,941)
(60,073,494)
(in EUR)
Allowance for
current
operating
receivables
Allowance for
current interest
receivables Total
As at 1 January 2020 (33,213,942) (1,630,227) (34,844,169)
Creation/reversal of allowances affecting profit or loss
576,792
-
576,792
Write-downs
1,427,298
571,043
1,998,341
As at 31 December 2020
(31,209,852)
(1,059,184)
(32,269,036)
(in EUR)
Allowance for
current
operating
receivables
Allowance for
current interest
receivables Total
As at 1 January 2021 (31,209,852) (1,059,184) (32,269,036)
Creation/reversal of allowances affecting profit or loss
(2,942,872)
-
(2,942,872)
Write-downs
2,229,522
115,980
2,345,502
As at 31 December 2021
(31,923,202)
(943,204)
(32,866,406)
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Current trade receivables 692,538,011 406,289,815 409,335,386 262,238,768
Allowances (57,553,745) (49,921,950) (31,098,414) (30,657,864)
Current trade receivables including allowances 634,984,266 356,367,865 378,236,972 231,580,904
Overdue current trade receivables (gross amount) 107,423,690 83,282,995 58,813,962 54,040,260
Share of overdue receivables in outstanding receivables 16 % 20 % 14 % 21 %
Current ope rating receivables over EUR 100,000
secured with high-quality collaterals
379,692,734 196,754,738 189,939,857 116,887,621
The Petrol Group Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 295
16,479,600 as at 31 December 2021 (the customer is a company), accounting for 4.0 percent
of the Company's trade receivables.
The receivables mainly relate to receivables from domestic and foreign customers arising from
the wholesale of goods and services and the sale of goods to the holders (natural persons) of
the Petrol Club card.
The structure of wholesale and retail customers is diversified, meaning there is no significant
exposure to a single customer. The Group had 40,919 active customers (legal persons) as at
31 December 2021. The Group/Company has in place an IT-based system of grades, ratings
and blocks, enabling it to constantly monitor its customers.
The Group/Company improves the system for the monitoring of credit risks on a steady basis.
In 2021, the system of limits adopted at the Petrol Group level was applied consistently. The
Group/Company measures the degree of receivables management in days’ sales outstanding.
Commodity loans granted to buyers in order to reschedule the settlement of receivables are
largely secured (usually through mortgages, but also through bank guarantees).
The loans granted by the Company refer mainly to the loans to subsidiaries. The Company
regularly assesses the possibility of the loans' repayment, the possibility of realising the
collateral or whether the value of the collateral is still adequate compared to the value of the
investment. If the Company considers that a loan is not fully collectable, an allowance is made
for the uncollectable amount. The Company systematically monitors the operations of Group
companies, thus adequately limiting credit risk.
7.2 Liquidity risk
Due to uncertainty, we faced during the epidemic, the Petrol Group has put great emphasis on
liquidity risk management.
Our key goal remains, however, that the Group/Company can successfully manage liquidity
risks according to Standard & Poor's guidelines.
The Group/Company manages liquidity risks through:
maintaining the level of debt at an appropriate level (measured as the net debt to
EBITDA ratio) as laid down in the strategy and business plan;
ensuring adequate structural liquidity in accordance with S&P methodology;
standardised and centralised treasury management at the Group level;
the annual planning of funds required by the Petrol Group;
the daily planning and simulating of cash flows for the parent company and its
subsidiaries performed by day and for two or three months in advance, which is
currently an extremely important tool;
a uniform approach to banks in Slovenia and abroad;
computer-assisted system for the management of the cash flows of the parent
company and all its subsidiaries;
centralised collection of available cash through cash pooling.
(in days)
2021 2020 2021 2020
Days sales outstanding
Contract days 36 49 31 42
Overdue receivables in days 4 5 3 5
Total days sales outstanding
40
54
34
47
The Petrol Group Petrol d.d.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 296
Nearly half of the Group’s/Company’s total cash inflow is generated through its retail network
in which cash and payment cards are used as the means of payment. This ensures regular
daily inflows and mitigates liquidity risks.
In addition, the Group/Company has credit lines at its disposal both in Slovenia and abroad,
the size of which enables the Group to meet all its due liabilities at any given moment.
Successful planning of cash flows or estimating how inflows could decrease as a result of the
decline in sales, enabled us to forecast liquidity needs in a timely and effective manner and to
ensure optimal cash flow management at the Group level. Our strong liquidity position also
allows for the settlement of all liabilities as they fall due.
The majority of financial liabilities arising from long-term and short-term loans are held by the
parent company, which also generates the majority of revenue.
The Group’s liabilities by maturity
Current financial liabilities include derivative financial instruments totalling EUR 11,195,184.
Current financial liabilities include derivative financial instruments totalling EUR 2,907,790.
(in EUR)
Carrying
amount of
liabilities
Liability
0 to 6 months 6 to 12 months 1 to 5 years
More than 5
years
Non-current financial liabilities
303,431,060
310,959,169
-
-
299,710,991
11,248,178
Non-current lease liabilities
54,397,111
70,609,544
-
-
38,272,782
32,336,762
Non-current operating liabilities (excluding other liabilities)
24,000
24,000
-
-
24,000
-
Current financial liabilities
48,766,555
51,021,405
25,928,595
25,092,810
-
-
Current lease liabilities
10,069,352
11,024,294
5,638,689
5,385,605
-
-
Liabilities arising from commodity forward contracts*
-
366,543,618
165,388,450
156,287,654
44,867,514
-
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments)
293,950,017 293,950,017 293,550,768 399,249 - -
As at 31 December 2020
710,638,095
1,104,132,047
490,506,502
187,165,318
382,875,287
43,584,940
Contractual cash flows
(in EUR)
Carrying
amount of
liabilities
Liability
0 to 6 months 6 to 12 months 1 to 5 years
More than 5
years
Non-current financial liabilities
433,812,995
449,991,568
-
-
193,267,964
256,723,604
Non-current lease liabilities
92,991,633
102,794,713
-
-
50,827,716
51,966,997
Non-current operating liabilities (excluding other liabilities)
5,024,000
5,024,000
-
-
5,024,000
-
Current financial liabilities
65,958,447
71,080,903
51,230,909
19,849,994
-
-
Current lease liabilities
13,768,130
19,086,349
9,565,561
9,520,788
-
-
Liabilities arising from commodity forward contracts*
-
694,778,063
362,868,525
280,035,717
51,873,821
-
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments)
560,295,947 560,295,947 554,989,616 5,306,331 - -
As at 31 December 2021
1,171,851,152
1,903,051,543
978,654,611
314,712,830
300,993,501
308,690,601
Contractual cash flows

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 297
The Company’s liabilities by maturity
Current financial liabilities include derivative financial instruments totalling EUR 13,397,026.
* Liabilities arising from commodity forward contracts entered into for purchasing purposes represent contractual
cash outflows based on these contracts. At the same time, the Group/Company will receive corresponding
payments based on offsetting commodity contracts entered into for selling purposes.
** A maximum amount of contingent liabilities is allocated to the period in which the Company can be requested to
make a payment.
Current financial liabilities include derivative financial instruments totalling EUR 2,907,790.
(in EUR)
Carrying
amount of
liabilities
Liability
0 to 6 months 6 to 12 months 1 to 5 years
More than 5
years
Non-current financial liabilities
404,555,761
419,129,334
-
-
141,756,803
277,372,531
Non-current lease liabilities
26,735,533
36,574,884
-
-
12,633,019
23,941,865
Non-current operating liabilities (excluding other liabilities)
5,024,000
5,024,000
-
-
5,024,000
-
Current financial liabilities
272,485,762
279,304,500
106,105,302
173,199,198
-
-
Current lease liabilities
2,717,596
3,901,293
2,111,294
1,789,999
-
-
Liabilities arising from commodity forward contracts*
-
692,870,222
360,984,978
280,011,423
51,873,821
-
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments)
359,751,260 359,751,260 354,459,153 5,292,107 - -
Contingent liabilities for guarantees issued**
-
317,210,161
317,210,161
-
-
-
As at 31 December 2021
1,071,269,912
2,113,765,654
1,140,870,888
460,292,727
211,287,643
301,314,396
Contractual cash flows
(in EUR)
Carrying
amount of
liabilities
Liability
0 to 6 months 6 to 12 months 1 to 5 years
More than 5
years
Non-current financial liabilities
282,866,603
287,498,462
-
-
276,250,284
11,248,178
Non-current lease liabilities
27,608,922
39,824,872
-
-
15,965,169
23,859,703
Non-current operating liabilities (excluding other liabilities)
24,000
24,000
-
-
24,000
-
Current financial liabilities
160,688,732
164,278,181
33,525,671
130,752,510
-
-
Current lease liabilities
4,259,323
4,294,274
2,212,789
2,081,485
-
-
Liabilities arising from commodity forward contracts*
-
368,883,699
166,749,812
157,266,373
44,867,514
-
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments)
229,139,241 229,139,241 228,889,303 249,938 - -
Contingent liabilities for guarantees issued**
-
168,698,903
168,698,903
-
-
-
As at 31 December 2020
704,586,821
1,262,641,632
600,076,478
290,350,306
337,106,967
35,107,881
Contractual cash flows

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 298
7.3 Foreign exchange risk
The Group
(in EUR)
EUR USD HRK BAM RSD MKD RON CHF HUF CZK BGN GBP RUB Total
Cash and cash equivalents 41,589,098 2,647,365 25,007,622 4,793,284 11,422,061 1,826,793 1,149,872 109,704 26,426 64,291 36,843 1,489 104 88,674,952
Current operating receivables (excluding rec. from the state) 278,973,802 279,258 48,439,561 17,645,002 17,922,324 47,930 613,350 - 8,745 - - - - 363,929,972
Non-current operating receivables 10,544,965 - 10,887 7,454 2,009 - - - - - - - - 10,565,315
Current financial receivables 31,780,927 - 263,205 72,603 - 517,355 - - - - - - - 32,634,090
Non-current financial receivables 2,680,471 - - - - - - - - - - - - 2,680,471
Non-current operating liabilities (excluding other liabilities) (24,000) - - - - - - - - - - - - (24,000)
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments) (211,838,704) (50,401,302) (25,122,761) (3,880,964) (1,926,354) (49,004) (60,933) -
(615,339) - (52,685) (1,971) - (293,950,017)
Non-current financial liabilities (303,051,298) - (29,002) - (350,760) - - - - - - - - (303,431,060)
Non-current lease liabilities (28,343,302) - (21,095,447) (3,316,441) (1,641,921) - - - - - - - - (54,397,111)
Current financial liabilities (43,699,888) (5,029,689) (8,282) - (28,696) - - - - - - - - (48,766,555)
Current lease liabilities (4,542,967) - (4,867,773) (323,307) (335,305) - - - - - - - - (10,069,352)
Exposure of the statement of financial position
(225,930,896)
(52,504,368)
22,598,010
14,997,631
25,063,358
2,343,074
1,702,289
109, 704
(580,168)
64,291
(15,842)
(482)
104
(212,153,295)
Nominal value of forward contracts (43,412,918) 42,652,825 - - - - 760,093 - - - - - - -
Net exposure of the statement of financial position
(269,343,814)
(9,851,543)
22,598,010
14,997,631
25,063,358
2,343,074
2,462,382
109, 704
(580,168)
64,291
(15,842)
(482)
104
(212,153,295)
(in EUR)
EUR USD HRK BAM RSD MKD RON CHF HUF CZK BGN GBP RUB Total
Cash and cash equivalents 61,013,124 1,156,764 29,756,999 2,417,531 2,101,401 92,091 3,375,162 49,639 7,795 226,188 30,151 45 - 100,226,890
Current operating receivables (excluding rec. from the state) 481,505,521 847,677 107,085,021 27,387,657 27,616,081 - 442,479 - 8,718 - - - - 644,893,154
Non-current operating receivables 8,223,281 - 3,479 - 2,011 - - - - - - - - 8,228,771
Current financial receivables 15,336,028 - 313,552 1,566 - 517,546 - - - - - - - 16,168,692
Non-current financial receivables 191,092 - 798,821 - - - 1,918 - - - - - - 991,831
Non-current operating liabilities (excluding other liabilities) (5,024,000) - - - - - - - - - - - - (5,024,000)
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments) (419,139,745) (64,856,729) (67,497,119) (6,317,304) (1,851,569) (710) (1,050) -
(583,483) - (77) (48,161) - (560,295,947)
Non-current financial liabilities (433,432,824) - (29,098) - (351,073) - - - - - - - - (433,812,995)
Non-current lease liabilities (27,145,512) - (59,134,959) (3,279,377) (3,431,785) - - - - - - - - (92,991,633)
Current financial liabilities (65,750,505) (116,341) (58,967) - (32,634) - - - - - - - - (65,958,447)
Current lease liabilities (2,941,874) - (9,844,609) (419,962) (561,685) - - - - - - - - (13,768,130)
Exposure of the statement of financial position
(387,165,414)
(62,968,629)
1,393,120
19,790,111
23,490,747
608,927
3,818,509
49,639
(566,970)
226,188
30,074
(48,116)
-
(401,341,814)
Nominal value of forward contracts (95,305,770) 85,448,575 - - - - 9,857,195 - - - - - - -
Net exposure of the statement of financial position
(482,471,184)
22,479,946
1,393,120
19,790,111
23,490,747
608,927
13,675,704
49,639
(566,970)
226,188
30,074
(48,116)
-
(401,341,814)
The Petrol Group
31 December 2020
The Petrol Group
31 December 2021

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 299
The Company
(in EUR)
EUR USD HRK BAM RON CHF HUF RS D GBP MKD BGN CZK Tota l
Cash and cash equivalents
33,323,786
2,394,754
7,567,158
5
1,136,359
109,580
26,426
29,338
1,416
498
36,843
44,362
44,670,525
Current operating receivables (excluding rec. from the state) 236,869,822 - 9,814 - 613,349 - 8,745 - - - - - 237,501,730
Non-current operating receivables 10,542,414 - - - - - - - - - - - 10,542,414
Current financial receivables 22,247,726 - - - - - - - - - - - 22,247,726
Non-current financial receivables 58,124,422 - - - - - - - - - - - 58,124,422
Non-current operating liabilities (excluding other liabilities) (24,000) - - - - - - - - - - - (24,000)
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments) (178,030,111) (50,308,066) (17,581) - (106,130) - (582,213) - (1,971) (40,484) (52,685) - (229,139,241)
Non-current financial liabilities (282,866,603) - - - - - - - - - - - (282,866,603)
Non-current lease liabilities (27,608,922) -
- - - - - - - - - - (27,608,922)
Current financial liabilities (155,543,374) (5,145,358) - - - - - - - - - - (160,688,732)
Current lease liabilities (4,259,323) - - - - - - - - - - - (4,259,323)
Exposure of the stateme nt of financial position
(287,224,163)
(53,058,670)
7,559,391
5
1,643,578
109,580
(547,042)
29,338
(555)
(39,986)
(15,842)
44,362
(331,500,004)
Nominal value of forward contracts (43,412,918) 42,652,825 - - 760,093 - - - - - - - -
Net exposure of the statement of financial position
(330,637,081)
(10,405,845)
7,559,391
5
2,403,671
109,580
(547,042)
29,338
(555)
(39,986)
(15,842)
44,362
(331,500,004)
(in EUR)
EUR USD HRK BAM RON CHF HUF RS D GBP MKD BGN CZK Tota l
Cash and cash equivalents 53,486,780 351,048 19,083 55 3,366,757 49,639 7,795 29,358 45 498 30,151 226,188 57,567,397
Current operating receivables (excluding rec. from the state) 384,117,222 - 1,016,538 - 442,479 - 8,718 - - - - - 385,584,957
Non-current operating receivables 8,219,107 - - - - - - - - - - - 8,219,107
Current financial receivables 16,181,049 - - - - - - - - - - - 16,181,049
Non-current financial receivables 65,521,247 - 17,777,938 - - - - - - - - - 83,299,185
Non-current operating liabilities (excluding other liabilities) (5,024,000) - - - - - - - - - - - (5,024,000)
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments) (294,782,530) (62,955,829) (1,381,180) - - - (583,483) - (48,161) (77) - (359,751,260)
Non-current financial liabilities (404,555,761)
- - - - - - - - - - - (404,555,761)
Non-current lease liabilities (26,735,533) - - - - - - - - - - - (26,735,533)
Current financial liabilities (254,572,408) (116,341) (17,797,013) - - - - - - - - - (272,485,762)
Current lease liabilities (2,717,596) - - - - - - - - - - - (2,717,596)
Exposure of the stateme nt of financial position
(460,862,423)
(62,721,122)
(364,634)
55
3,809,236
49,639
(566,970)
29,358
(48,116)
498
30,074
226,188
(520,418,217)
Nominal value of forward contracts (95,305,770) 85,448,575 - - 9,857,195 - - - - - - - -
Net exposure of the statement of financial position
(556,168,193)
22,727,453
(364,634)
55
13,666,431
49,639
(566,970)
29,358
(48,116)
498
30,074
226,188
(520,418,217)
Petrol d.d.
31 Decembe r 2020
Petrol d.d.
31 Decembe r 2021

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 300
The following exchange rates prevailed in 2021 and 2020:
As far as foreign exchange risks are concerned, the Group/Company is most exposed to the
risk of changes in the EUR/USD exchange rate arising from the procurement of petroleum
products as these are primarily purchased in US dollars and sold in the domestic or foreign
markets in local currencies.
The Group hedges against the exposure to changes in the EUR/USD exchange rate by fixing
the exchange rate in order to secure the margin. The hedging instruments used in this case
are forward contracts entered into with banks. During the epidemic and with the prices of
petroleum products decreasing, no changes to the foreign exchange risk hedging system were
needed.
The effect of forward contracts
The effect of forward contracts should be considered together with foreign exchange
differences arising on the purchase of oil and petroleum products. The total effect of forward
contracts and foreign exchange differences was as follows: revenue of EUR 2,721,775 (2020:
expenses of EUR 62,817) for the Group and revenue of EUR 1,787,256 (2020: expenses of
EUR 179,422) for the Company.
Given that forward contracts for hedging against foreign exchange risks are entered into with
first-class Slovenian banks, the Group/Company considers the counterparty default risk is
minimal. The Group is also exposed to foreign exchange risks in doing business with its
subsidiaries in SE Europe. Considering the low volatility of the exchange rates of local
currencies in SE Europe markets and the relatively low exposure, the Group/Company
believes it is not exposed to significant risks in this area. To control these risks, we rely on
natural hedging to the largest possible extent.
In 2021, the Group/Company was also exposed to certain other currencies (RON, HUF), which
was hedged using derivative financial instruments. Exposure to currencies in other markets in
which the Group/Company is present through its companies is either smaller or the currencies
are considerably less volatile compared to the euro. We estimate that a change in the
exchange rate would not have a material impact on profit or loss.
Per 1 euro
31 December
2021
31 December
2020
USD 1.1334 1.2281
HRK 7.5211 7.5460
BAM 1.9558 1.9558
RSD 117.4400 117.5300
CZK 24.9170 26.2520
RON 4.9494 4.8681
MKD 61.5350 61.5590
HUF 370.1500 364.8800
CHF 1.0363 1.0857
BGN 1.9558 1.9558
(in EUR)
2021 2020 2021 2020
Unrealised loss (287,484) (786,222) (287,484) (786,222)
Unrealised gain - 2,636 - 2,636
Realised loss (1,728,783) (3,887,227) (1,728,783) (3,887,227)
Realised gain 4,195,325 2,099,191 4,195,325 2,099,191
Total effect of forward contracts
2,179,058
(2,571,622)
2,179,058
(2,571,622)
The Petrol Group Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 301
The Group/Company regularly monitors its open currency position and sensitivity based on the
VaR method for all currencies to which it is exposed.
An unfavourable change in any currency pair by 10 percent would decrease net profit by a
maximum of EUR 3,161,421 (2020: EUR 2,451,284), with the EUR/BAM currency pair being
treated as fixed.
7.4 Price and volumetric risk
The Group/Company is exposed to price and volumetric risks arising from energy operations.
The Group/Company manages price and volumetric risks primarily by aiming to align the
purchases and sales of energy products in terms of quantities, as well as purchase and sales
conditions, thus securing its margin. Depending on the business model of the energy product,
limits are set that limit the exposure to price and volumetric risks.
To hedge petroleum product prices, the Group/Company uses mostly derivative financial
instruments. Partners in this area include global financial institutions and banks or suppliers of
goods, which is why the Group/Company considers the counterparty default risk as minimal.
The effect of commodity swaps
In the electricity trading segment, the effect of changes in electricity market prices on the
market value of contracts is calculated (mark-to-market approach).
A change in electricity market prices of ±3 percent as at 31 December 2021 would mean that
the market value of the contracts would be EUR ±163,000. The calculation includes both
physical and financial transactions.
7.5 Interest rate risk
The Group/Company is exposed to interest rate risks because it takes out loans with a floating
interest rate, which are mostly EURIBOR-based. In 2021, the Group/Company continued to
monitor exposure to changes in net interest expense in the case of interest rate changes.
The exposure to interest rate risks is hedged using the following instruments:
partly through ongoing operations, the Group’s/Company’s interest rate on operating
receivables being indirectly EURIBOR-based;
partly through forward markets by entering into interest rate swaps;
taking out loans with a fixed interest rate.
The Group/Company uses “hedge accounting” on interest rate swaps. Hedged items and
hedging instruments represent an effective hedging relationship, which is why interest rate risk
hedging outcomes are recognised directly in equity.
(in EUR)
2021
2020
2021
2020
Unrealised loss
(116,341)
(5,029,689)
(116,341)
(5,145,357)
Unrealised gain
34,337,157
11,105,252
34,231,810
11,050,505
Realised loss
(235,612,141)
(69,439,844)
(236,216,896)
(71,128,290)
Realised gain
235,594,823
89,001,406
235,614,924
88,697,950
Total effect of commodity swaps
34,203,498
25,637,125
33,513,497
23,474,808
The Petrol Group
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 302
Overview of EURIBOR interest rates in 2021 and 2020
Interest rate swaps by maturity
The effect of interest rate swaps
The Group’s/Company’s exposure to the risk of changing interest rates was as follows:
Financial instruments with a fixed interest rate
Financial instruments with a variable interest rate
6-month
Euribor
3-month
Euribor
1-month
Euribor
Value as at 31/12/2020 (in percent) (0.523) (0.538) (0.555)
Value as at 31/12/2021 (in percent) (0.544) (0.571) (0.594)
Change in interest rate (in percentage points)
(0.021) (0.033) (0.039)
The lowest value in 2021 (in percent) (0.554) (0.605) (0.648)
The lowest value in 2021 (in percent) (0.505) (0.534) (0.547)
Change between the lowest and the highest interest
rate (in percentage points)
0.049 0.071 0.101
Average value in 2020 (in percent) (0.367) (0.427) (0.499)
Average value in 2021 (in percent) (0.523) (0.549) (0.561)
Change in average interest rate (in percentage points)
(0.156) (0.122) (0.062)
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
6 to 12 months 74,000,000 24,000,000 74,000,000 24,000,000
1 to 5 years 307,000,000 231,000,000 257,000,000 181,000,000
Total interest rate swaps
381,000,000
255,000,000
331,000,000
205,000,000
The Petrol Group Petrol d.d.
(in EUR)
2021 2020 2021 2020
Unrealised loss on effective transactions 4,109,730 (128,073) 3,283,988 124,723
Realised loss (2,156,222) (1,787,481) (1,968,491) (1,632,798)
Total effect of interest rate swaps
1,953,508
(1,915,554)
1,315,497
(1,508,075)
The Petrol Group Petrol d.d.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Financial receivables 1,788,799 2,433,594 95,847,532 78,258,364
Financial liabilities (144,855,441) (44,966,831) (316,133,210) (179,582,099)
Net financial instruments w ith a fixed interest rate
(143,066,642)
(42,533,237)
(220,285,678)
(101,323,735)
The Petrol Group Petrol d.d.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Financial receivables 15,371,724 32,880,967 3,632,702 2,113,784
Financial liabilities (354,916,001) (307,230,784) (360,908,313) (263,973,236)
Net financial instruments with a variable interest rate
(339,544,277)
(274,349,817)
(357,275,611)
(261,859,452)
The Petrol Group Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 303
Value of financial liabilities hedged using interest rate swaps
A change in the interest rate by 100 or 200 basis points on the reporting date would have
increased (decreased) the net profit or loss by the amounts indicated below. Cash flow
sensitivity analysis in the case of instruments with a variable interest rate assumes that all
variables, in particular foreign exchange rates, remain unchanged. When performing the
calculation, the value of receivables (liabilities) with variable interest rates is further decreased
by the total amount of interest rate swaps. The analysis was prepared in the same manner for
both years.
Change in profit or loss in the case of an increase by 100 or 200 bp
Change in profit or loss in the case of a decrease by 100 or 200 bp:
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Interest rate swaps 381,000,000 255,000,000 331,000,000 205,000,000
Total interest rate swaps
381,000,000
255,000,000
331,000,000
205,000,000
The Petrol Group Petrol d.d.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Cash flow variability (net)–100 bp 414,557 (193,498) (262,756) (568,595)
Cash flow variability (net)–200 bp 829,114 (386,996) (525,512) (1,137,189)
The Petrol Group Petrol d.d.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Cash flow variability (net)–100 bp (414,557) 193,498 262,756 568,595
Cash flow variability (net)–200 bp (829,114) 386,996 525,512 1,137,189
The Petrol Group Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 304
7.6 Capital adequacy management
The main purpose of capital adequacy management is to ensure the best possible financial
stability, long-term solvency and maximum shareholder value. The Group/Company also
achieves this through a stable dividend pay-out policy. Testifying to our financial stability are
the “BBB-” credit rating received from S&P at the end of June 2014 and the successful
international issuance of eurobonds worth a total of EUR 265 million, which were fully repaid
in 2019. On 9 April 2021, Standard & Poor's Ratings Services reaffirmed the “BBB-” long-term
credit rating and the “A-3” short-term credit rating of Petrol d.d., Ljubljana, also reaffirming the
“stable” credit rating outlook.
In 2021, despite the impact of the epidemic, the Petrol Group maintained the net debt to equity
ratio at appropriate levels through good operating performance.
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Non-current financial liabilities
433,812,995
303,431,060
404,555,761
282,866,603
Non-current lease liabilities
92,991,633
54,397,111
26,735,533
27,608,922
Current financial liabilities
65,958,447
48,766,555
272,485,762
160,688,732
Current lease liabilities
13,768,130
10,069,352
2,717,596
4,259,323
Total financial liabilities
606,531,205
416,664,078
706,494,652
475,423,580
Total equity
908,698,005
826,669,437
609,914,620
585,981,368
Debt/Equity
0.67
0.50
1.16
0.81
Cash and cash equivalents
100,226,890
88,674,952
57,567,397
44,670,525
Net financial liabilities
506,304,315
327,989,126
648,927,255
430,753,055
Net debt/Equity
0.56
0.40
1.06
0.74
The Petrol Group
Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 305
7.7 Carrying amount and fair value of financial instruments
The Petrol Group
Petrol d.d., Ljubljana
(in EUR)
Carrying
amount Fair value
Carrying
amount Fair value
Non-derivative financial assets at fair value
Financial assets at fair value through other comprehensive
income
5,909,845 5,909,845 4,738,081 4,738,081
Non-derivative financial assets at amortised cost
Fin. receivables (excluding derivative financial instruments)
17,160,523
17,160,523
35,314,561
35,314,561
Operating receivables (excluding receivables from the state)
653,121,925
653,121,925
374,495,287
374,495,287
Contract assets
3,338,893
3,338,893
1,949,652
1,949,652
Cash and cash equivalents
100,226,890
100,226,890
88,674,952
88,674,952
Total non-derivative financial assets
779,758,076
779,758,076
505,172,533
505,172,533
Non-derivative financial liabilities at amortised cost
Bank loans and other financial liabilities (excluding derivative
fin.instr.)
(496,863,652) (496,863,652) (341,002,431) (341,002,431)
Lease liabilities
(106,759,763)
(106,759,763)
(64,466,463)
(64,466,463)
Operating liabilities (excluding other non-current liabilities
and current liabilities to the state, employees and arising
from advance payments)
(565,319,947) (565,319,947) (293,974,017) (293,974,017)
Total non-derivative financial liabilities
(1,168,943,362)
(1,168,943,362)
(699,442,911)
(699,442,911)
Derivative financial instruments at fair value
Derivative financial instruments (assets)
34,666,891
34,666,891
11,107,888
11,107,888
Derivative financial instruments (liabilities)
(2,907,790)
(2,907,790)
(11,195,184)
(11,195,184)
Total derivative financial instruments
31,759,101
31,759,101
(87,296)
(87,296)
The Petrol Group
31 December 2021
31 December 2020
(in EUR)
Carrying
amount Fair value
Carrying
amount Fair value
Non-derivative financial assets at fair value
Financial assets at fair value through other comprehensive
income 3,218,360 3,218,360 2,327,008 2,327,008
Non-derivative financial assets at amortised cost
Fin. receivables (excluding derivative financial instruments) 99,480,234 99,480,234 80,372,148 80,372,148
Operating receivables (excluding receivables from the state) 393,804,064 393,804,064 248,044,144 248,044,144
Contract assets 7,604,649 7,604,649 3,276,761 3,276,761
Cash and cash equivalents 57,567,397 57,567,397 44,670,525 44,670,525
Total non-derivative financial assets
561,674,704
561,674,704
378,690,586
378,690,586
Non-derivative financial liabilities at amortised cost
Bank loans and other financial liabilities (excluding derivative
fin.instr.) (674,133,733) (674,133,733) (430,158,309) (430,158,309)
Lease liabilities (29,453,129) (29,453,129) (31,868,245) (31,868,245)
Operating liabilities (excluding other non-current liabilities
and current liabilities to the state, employees and arising
from advance payments) (364,775,260) (364,775,260) (229,163,241) (229,163,241)
Total non-derivative financial liabilities
(1,068,362,122)
(1,068,362,122)
(691,189,795)
(691,189,795)
Derivative financial instruments at fair value
Derivative financial instruments (assets) 34,561,544 34,561,544 11,053,141 11,053,141
Derivative financial instruments (liabilities) (2,907,790) (2,907,790) (13,397,026) (13,397,026)
Total derivative financial instruments
31,653,754
31,653,754
(2,343,885)
(2,343,885)
Petrol d.d.
31 December 2021 31 December 2020

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 306
Presentation of financial assets and liabilities disclosed at fair value according to the
fair value hierarchy
The Petrol Group
Fair value of assets
The fair value of financial assets at fair value through other comprehensive income was
assessed using the income capitalisation method and the assumption of a 5.0-percent required
rate of return before taxes and a 1.5-percent long-term growth rate. An increase in the above
assumptions by 0.5 percentage point would have caused the fair value to increase by EUR
2,114,879. A decrease in the above assumptions by 0.5 percentage point would have caused
the fair value to decrease by EUR 846,121.
Fair value of liabilities
Petrol d.d., Ljubljana
Fair value of assets
The fair value of financial assets at fair value through other comprehensive income was
assessed using the income capitalisation method and the assumption of an 5-percent required
rate of return before taxes and a 1.5-percent long-term growth rate. An increase in the above
assumptions by 0.5 percentage point would have caused the fair value to increase by EUR
(in EUR)
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss 34,666,891 - - 34,666,891 11,107,888 - - 11,107,888
Financial assets at fair value through other comprehensive
income 1,442,724 - 4,467,121 5,909,845 209,094 - 4,528,987 4,738,081
Total assets at fair va lue
36,109,615
-
4,467,121
40,576,736
11,316,982
-
4,528,987
15,845,969
Non-current financial receivables - - 991,831 991,831 - - 2,680,471 2,680,471
Current financial receivables - - 16,168,692 16,168,692 - - 32,634,090 32,634,090
Non-current operating receivables - - 8,228,771 8,228,771 - - 10,565,315 10,565,315
Current operating receivables (excluding rec. from the state) - - 644,893,154 644,893,154 - - 363,929,972 363,929,972
Contract assets - - 3,338,893 3,338,893 - - 1,949,652 1,949,652
Cash and cash equivalents - - 100,226,890 100,226,890 - - 88,674,952 88,674,952
Total assets with fair value disclosure
-
-
773,848,231
773,848,231
-
-
500,434,452
500,434,452
T o ta l a sse ts
36,109,615
-
778,315,352
814,424,967
11,316,982
-
504,963,439
516,280,421
31 December 2021 31 December 2020
(in EUR)
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial liabilities at fair value through profit or loss (2,907,790) - - (2,907,790) (11,195,184) - - (11,195,184)
Total liabilities at fair value
(2,907,790)
-
-
(2,907,790)
(11,195,184)
-
-
(11,195,184)
Non-current financial liabilities - - (433,812,995) (433,812,995) - - (303,431,060) (303,431,060)
Non-current lease liabilities - - (92,991,633) (92,991,633) - - (54,397,111) (54,397,111)
Current financial liabilities (excluding liabilities at fair value) - - (63,050,657) (63,050,657) - - (37,571,371) (37,571,371)
Current lease liabilities - - (13,768,130) (13,768,130) - - (10,069,352) (10,069,352)
Non-current operating liabilities (excluding other liabilities) - - (5,024,000) (5,024,000) - - (24,000) (24,000)
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments) - - (560,295,947) (560,295,947) - - (293,950,017) (293,950,017)
Total liabilities with fair value disclosure
-
-
(1,168,943,362)
(1,168,943,362)
-
-
(699,442,911)
(699,442,911)
Total liabilities
(2,907,790)
-
(1,168,943,362)
(1,171,851,152)
(11,195,184)
-
(699,442,911)
(710,638,095)
31 December 2021 31 December 2020
(in EUR)
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss 34,561,544 - - 34,561,544 11,053,141 - - 11,053,141
Financial assets at fair value through other comprehensive
income 1,100,446 - 2,117,914 3,218,360 209,094 - 2,117,914 2,327,008
Total assets at fair va lue
35,661,990
-
2,117,914
37,779,904
11,262,235
-
2,117,914
13,380,149
Non-current financial receivables - - 83,299,185 83,299,185 - - 58,124,422 58,124,422
Current financial receivables - - 16,181,049 16,181,049 - - 22,247,726 22,247,726
Non-current operating receivables - - 8,219,107 8,219,107 - - 10,542,414 10,542,414
Current operating receivables (excluding rec. from the state) - - 385,584,957 385,584,957 - - 237,501,730 237,501,730
Contract assets - - 7,604,649 7,604,649 - - 3,276,761 3,276,761
Cash and cash equivalents - - 57,567,397 57,567,397 - - 44,670,525 44,670,525
Total assets with fair value disclosure
-
-
558,456,344
558,456,344
-
-
376,363,578
376,363,578
T o ta l a sse ts
35,661,990
-
560,574,258
596,236,248
11,262,235
-
378,481,492
389,743,727
31 December 2021 31 December 2020

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 307
751,086. A decrease in the above assumptions by 0.5 percentage point would have caused
the fair value to decrease by EUR 539,914.
Fair value of liabilities
Changes in Level 3 assets measured at fair value
8. Related party transactions
Petrol d.d., Ljubljana is a joint-stock company listed on the Ljubljana Stock Exchange. The
ownership structure as at 31 December 2021 is presented in the chapter The Management
and Governance System of Petrol d.d., Ljubljana in the business report.
All of the Group/Company related party transactions were carried out based on the market
conditions applicable to transactions with unrelated parties.
(in EUR)
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial liabilities at fair value through profit or loss (2,907,790) - - (2,907,790) (10,828,180) - (2,568,846) (13,397,026)
Total liabilities at fair value
(2,907,790)
-
-
(2,907,790)
(10,828,180)
-
(2,568,846)
(13,397,026)
Non-current financial liabilities - - (404,555,761) (404,555,761) - - (282,866,603) (282,866,603)
Non-current lease liabilities - - (26,735,533) (26,735,533) - - (27,608,922) (27,608,922)
Current financial liabilities (excluding liabilities at fair value) - - (269,577,972) (269,577,972) - - (147,291,706) (147,291,706)
Current lease liabilities - - (2,717,596) (2,717,596) - - (4,259,323) (4,259,323)
Non-current operating liabilities (excluding other liabilities) - - (5,024,000) (5,024,000) - - (24,000) (24,000)
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments) - - (359,751,260) (359,751,260) - - (229,139,241) (229,139,241)
Total liabilities with fair value disclosure
-
-
(1,068,362,122)
(1,068,362,122)
-
-
(691,189,795)
(691,189,795)
Total liabilities
(2,907,790)
-
(1,068,362,122)
(1,071,269,912)
(10,828,180)
-
(693,758,641)
(704,586,821)
31 December 2021 31 December 2020
(in EUR)
2021 2020 2021 2020
As at 1 January 4,528,987 4,528,987 2,117,914 2,117,914
New acquistions - 1,398,705 - 1,398,705
Disposals - (419,612) - (419,612)
Total profit or losses recognised in the statement of
comprehensive income (61,866) - - -
Total profit or losses recognised in the statement of profit or
loss - (979,093) - (979,093)
As at 31 December
4,467,121
4,528,987
2,117,914
2,117,914
The Petrol Group Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 308
Companies in the Petrol Group
(in EUR)
2021 2020 2021 2020
Sales revenue:
Subsidiaries - - 415,270,782 206,991,780
Jointly controlled entities 2,311,547 534,220 18,346 32,337
Associates 29,528 23,110 29,528 23,110
Cost of goods sold:
Subsidiaries - - 83,445,895 43,752,057
Jointly controlled entities 142,232 98,326 - -
Costs of m a te ri a l s:
Subsidiaries - - 412,845 218,101
Jointly controlled entities 2,509 1,976 - 902
Costs of se rvi ce s:
Subsidiaries - - 685,341 593,551
Jointly controlled entities 1,380 - - -
Gain on derivatives:
Subsidiaries - - 2,568,846 1,143,174
Loss on derivatives:
Subsidiaries - - 934,626 1,726,045
Finance income from interests in Group companies:
Subsidiaries - - 1,823,324 2,099,063
Jointly controlled entities 300,040 124,978 135,495 172,934
Associates 2,283,731 3,383,812 1,328,236 1,328,681
Finance income from interest:
Subsidiaries - - 1,052,504 505,509
Jointly controlled entities 317 456 317 456
Other finance income:
Subsidiaries 1,179,726 - 68,409 173,383
Associates 729 1,433 729 1,433
Finance expenses due to impairment of investments
and goodwill:
Subsidiaries 873,366 2,662,470 11,193,296 3,605,872
Finance expenses for interest:
Subsidiaries - - 2,220,406 1,218,265
Jointly controlled entities - 224 - 224
Allowance for operating receivables:
Jointly controlled entities - 426,265 - 426,265
The Petrol Group Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 309
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Investments in Group companies:
Subsidiaries - - 553,970,331 351,013,627
Jointly controlled entities 704,501 562,016 210,000 233,000
Associates 55,169,626 55,953,391 26,610,477 29,185,477
Non-current financial receivables:
Subsidiaries - - 83,233,789 56,492,385
Current operating receivables:
Subsidiaries - - 56,193,756 16,575,671
Jointly controlled entities 684,743 125,748 3,900 2,301
Associates 842 1,244 842 1,244
Current financial receivables:
Subsidiaries - - 14,741,616 20,778,358
Jointly controlled entities - 68,800 - 68,800
Short-term deposits (up to 3 months):
Subsidiaries - - - 377,677
Short-term deferred costs and expenses:
Subsidiaries - - 7,523,646 424,711
Contract assets:
Subsidiaries - - 5,559,143 1,364,744
Non-current financial liabilities:
Subsidiaries - - 21,000,000 29,638,849
Current financial liabilities:
Subsidiaries - - 207,418,493 112,597,148
Jointly controlled entities 300,000 300,025 300,000 300,025
Current operating liabilities:
Subsidiaries - - 17,420,542 6,438,681
Jointly controlled entities - 9,867 - -
Contract liabilities
Subsidiaries - - 9,241 5,773
The Petrol Group Petrol d.d.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 310
Remuneration of Supervisory Board and committee members of Petrol d.d., Ljubljana,
in accordance with Appendix C4 of the Slovenian Corporate Governance Code
* Member of the Supervisory Board from 11 April 2021.
** President of the Supervisory Board from 11 April 2021 to 21 April 2021, extended four-year term of office from 16 July 2021.
*** Extended four-year term of office from 23 February 2021.
Remuneration of Management Board members of Petrol d.d., Ljubljana, in accordance
with Appendix C3 of the Slovenian Corporate Governance Code
2020
2021
* Travel expenses, costs of accommodation and subsistence allowance are not disclosed as by their nature they do not represent
Management Board remuneration.
** Fixed remuneration – gross comprises the basic salary and pay for annual leave.
*** Variable remuneration – gross comprises the annual bonus and the performance bonus.
Total remuneration paid in 2021 by the Company to members of the Workers’ Council stood
at EUR 7,988.
The Company and the Group had no receivables from or liabilities to Supervisory Board
members as at 31 December 2021.
(in EUR) Function
Basic SB
payment Attendance fees Travel expenses Sum gross Sum net
Janez Žlak President of the Supervisory Board since 22 April 2021 18,156 2,585 - 20,741 15,085
Borut Vrvčar* Deputy President of the Supervisory Board since 22 April 2021 15,731 2,585 - 18,316 13,321
Aleksander Zupančič Member of the Supervisory board since 11 April 2021 13,397 3,201 848 17,445 12,688
Alenka Urnaut Ropoša Member of the Supervisory board since 11 April 2021 14,693 3,201 - 17,894 13,015
Mário Selec Member of the Supervisory board since 11 April 2021 13,397 2,090 - 15,487 12,002
Mladen Kaliterna** Member of the Supervisory board 26,045 4,851 - 30,896 22,471
Alen Mihelčič*** Member of the Supervisory board 25,258 3,575 - 28,833 20,970
Robert Ravnikar*** Member of the Supervisory board 25,258 4,191 - 29,449 21,418
Marko Šavli*** Member of the Supervisory board 18,844 4,235 - 23,079 16,786
Janez Pušnik
External member of the Audit Committee until 22 April 2021, Member of the
Supervisory board until 10 April 2021 11,053 2,926 - 13,979 10,167
Sašo Berger President of the Supervisory Board until 10 April 2021 17,306 990 - 18,296 13,306
Igo Gruden Deputy President of the Supervisory Board until 10 April 2021 12,483 1,870 - 14,353 10,438
Metod Podkrižnik Member of the Supervisory board until 10 April 2021 11,861 1,650 - 13,511 9,827
Sergij Goriup Member of the Supervisory board until 10 April 2021 12,347 990 - 13,337 9,700
Christoph Geymayer External member of the Audit Committee until 16 April 2021 1,413 880 - 2,293 1,668
Zoran Gračner Member of the Supervisory board until 10 December 2020 6,598 - - 6,598 4,799
Total:
243,840
39,820
848
284,507
207,660
(in EUR)
Based on
quantitative
criteria
Based on
qualitative
criteria Total
Deferred
remuneration
Termination
payments Benefits Clawback Sum gross Sum net
Nada Drobne Popović, President of the Management Board 192,341 670 330 1,000 - - 10,873 - 204,214 84,902
Jože Bajuk, Member of the Management Board since 11 March 2020 130,650 517 254 771 - - 6,579 - 138,000 62,747
Matija Bitenc, Member of the Management Board since 11 March 2020 130,650 517 254 771 - - 10,387 - 141,808 61,471
Jože Smolič, Member of the Management Board since 28 August 2020 57,733 141 70 211 - - 4,790 - 62,734 26,416
Danijela Ribarič Selaković, Member of the Management Board until 10 March 2020 32,332 151 74 225 - - 572 - 33,129 15,379
Tom Berločnik, MSc, President of the Management Board until 24 October 2019 - 55,275 27,225 82,500 - - - - 82,500 48,201
Rok Vodnik, MSc, Member of the Management Board until 24 October 2019 - 46,900 23,100 70,000 - - - - 70,000 40,898
Igor Stebernak, Member of the Management Board until 24 October 2019 - 46,900 23,100 70,000 - - - - 70,000 40,898
Ika Krevzel Panić, Worker Director until 10 December 2020 82,073 15,020 7,398 22,418 - - 3,020 - 107,511 56,499
Zoran Gračner, Worker Director since 11 December 2020 5,787 - - - - - 223 - 6,010 3,265
Total:
631,566
166,091
81,805
247,896
-
-
36,444
-
915,906
440,676
Fixed
remuneration -
gross**
Variable remuneration - gross***
(in EUR)
Based on
quantitative
criteria
Based on
qualitative
criteria Total
Deferred
remuneration
Termination
payments Benefits Clawback Sum gross Sum net
Nada Drobne Popović, President of the Management Board 198,166 33,347 100,040 133,387 - - 28,945 - 360,498 132,971
Jože Bajuk, Member of the Management Board 169,100 22,980 68,941 91,921 - - 27,742 - 288,763 108,205
Matija Bitenc, Member of the Management Board 169,100 22,980 68,941 91,921 - - 26,622 - 287,643 111,196
Jože Smolič, Member of the Management Board 169,100 9,939 29,817 39,756 - - 23,896 - 232,752 88,143
Zoran Gračner, Worker Director 107,506 2,966 8,898 11,864 - - 3,452 - 122,822 66,967
Total:
812,972
92,212
276,637
368,849
-
-
110,657
-
1,292,478
507,482
Fixed
remuneration -
gross**
Variable remuneration - gross***

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 311
The Company and the Group had no receivables from or liabilities to Management Board
members as at 31 December 2021, except for liabilities arising from December salaries
payable in January 2022.
In 2021 members of the Company's Management Board and Supervisory Board were not
remunerated for the functions performed in the management and supervisory bodies of the
Petrol Group's subsidiaries.
9.
Contingent liabilities
Contingent liabilities for guarantees issued
The maximum contingent liabilities of Petrol d.d., Ljubljana for guarantees issued stood at EUR
217,624,992 as at 31 December 2021 (31 December 2020: EUR 158,227,285) and were as
follows:
The value of the guarantee issued represents the maximum value of the guarantee issued,
whereas the guarantee amount used represents a value corresponding to a company's liability,
as reported on 31 December, for which the guarantee has been issued.
Contingent liabilities for lawsuits
The total value of lawsuits against the Company as defendant and debtor totals EUR 919,435.
Interest on overdue amounts arising from the claims stood at EUR 118,787 as at 31 December
2021. The Company’s management estimates that there is a possibility that some of these
lawsuits will be lost. As a result, the Company set aside long-term provisions. See explanation
in Note 6.34.
The total value of lawsuits against the Group as defendant and debtor totals EUR 1,465,113.
Interest on overdue amounts arising from the claims stood at EUR 118,787 as at 31 December
2021. The Group’s management estimates that there is a possibility that some of these
lawsuits will be lost. As a result, the Group set aside long-term provisions. See explanation in
Note 6.34.
Inventories owned by other entities
The Group’s and the Company’s inventories as at 31 December 2021 included commodity
reserve stocks of the Republic of Slovenia totalling EUR 188,730,588 (EUR 107,592,089 as at
(in EUR)
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Guarantee issued to:
Petrol d.o.o. 139,287,883 99,171,455 79,389,205 67,990,968
Vjetroelektrarna Ljubač d.o.o. 23,792,130 23,792,130 - -
Geoplin d.o.o. Ljubljana 21,000,000 13,000,000 - 8,069,782
E 3, d.o.o. 15,000,000 - 4,781,973 -
Petrol BH Oil Company d.o.o. Sarajevo 4,466,135 4,193,616 67,104 2,634,186
Petrol d.o.o. Beograd 3,500,000 7,625,489 80,749 833,397
Petrol Trade Handelsgesellschaft m.b.H. 3,000,000 3,000,000 1,800,000 1,800,000
Petrol Crna Gora MNE d.o.o. 420,000 480,000 189,941 124,856
Aquasystems d.o.o. 373,318 373,318 373,318 373,318
Total
210,839,466
151,636,008
86,682,290
81,826,507
Bills of exchange issued as security 99,585,169 10,471,618 99,585,169 10,471,618
Other guarantees 6,785,526 6,591,277 6,785,526 6,591,277
Total contingent liabilities for guarantees issued
317,210,161
168,698,903
193,052,985
98,889,402
Petrol d.d. Petrol d.d.
Value of guarantee issued Guarantee amount used

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 312

31 December 2020). The Company’s and the Group’s inventories as at 31 December 2021
also included goods delivered on consignment totalling EUR 9,963,690 (EUR 31,750,932 as
at 31 December 2020) and EUR 12,606,606 (EUR 32,787,543 as at 31 December 2020),
respectively. The goods delivered on consignment are carried at cost, while the commodity
reserve stocks are carried at calculated prices.

10. Events after the reporting date

The Petrol Group’s operations are integrated into international energy flows. The war in
Ukraine is also affecting the energy market, which is mainly reflected in rising energy prices,
while energy supplies are currently uninterrupted.

The Petrol Group does not have its own companies or representative offices in Ukraine, the
Russian Federation and Belarus. The share of sales revenue generated by the Petrol Group
in these markets is negligible, and the purchase of energy products in these markets, except
for natural gas, represents a small share in the Petrol Group’s purchasing portfolio. In 2021
and the first two months of 2022, Russia as a source of supply has accounted for less than 7%
as regards Petrol d.d., Ljubljana’s middle distillates (diesel and extra light heating oil), and as
for petrol, we do not import it from Russia.

The largest part of the Petrol Group’s operations with companies from the Russian Federation
is the purchase of natural gas, which takes place through Geoplin d.o.o., Ljubljana. For the
time being, deliveries from Russia are going smoothly and in accordance with contractual
obligations. Geoplin d.o.o., Ljubljana has a diversified supply portfolio and will do everything in
its power to ensure the uninterrupted supply of natural gas to its customers.

As of 31 December 2021, the Petrol Group had the following exposure in its balance sheet to
companies from the Russian Federation, Ukraine, and Belarus:
- Advanced payments for supplies amounting to 11,959 thousand euros (17 March 2022:
11,959 thousand euros) or 0.5% of the Petrol Group’s assets as of 31 December 2021
(17 March 2022: 0.5% of assets).
- Liabilities to suppliers amounting to 192 thousand euros (17 March 2022: 20,200
thousand euros) or 0.008% of the Petrol Group’s liabilities as of 31 December 2021 (17
March 2022: 0.84 % of liabilities).

The Petrol Group closely monitors the situation in both the energy and financial markets. As a
provider of essential services under the Information Security Act, we also carry out appropriate
security measures and activities. For the time being, the Petrol Group’s operations are running
smoothly, we are monitoring the situation through a risk identification and management system
and taking appropriate measures to ensure an uninterrupted supply of energy.

After analysing the impact of the situation in Russia and Ukraine on our operations, we
estimate that the situation known at the time of preparing the annual report does not affect the
fulfilment of the Petrol Group’s plan for 2022.

In 2022, energy prices continue their upward progress, to which governments respond with
various regulatory measures in the markets, in which the Petrol Group is active. The effects of
regulation are continuously being considered; however, due to ongoing changes during the
drawing up of the annual report, we are not in a position to be able to precisely assess the
potential impact on the realisation of the Petrol Group’s plan for 2022.

There were no other events after the reporting date that would significantly affect the presented
financial statements for 2021.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 313
11. Financial statements of Petrol d.d., Ljubljana by activity in accordance with
the Services of General Economic Interest Act and the Energy Act
11.1 Introduction
The energy part comprises an overview of the financial statements that the Company is
obliged to disclose in accordance with the Energy Act (Official Gazette of the RS No. 17/14,
81/15 and 43/19), which stipulates that undertakings performing energy activities in the field of
electricity or natural gas or heat supply have to prepare, audit and publish annual financial
statements in the manner prescribed by law for companies, irrespective of their legal form and
ownership.
In accordance with Article 66 of the Services of General Economic Interest Act (Official Gazette
of the RS, No. 32/93 and 30/98), the Company has to separately monitor all accounting records
that enable the calculation of costs, expenses and revenue according to the principles
applicable to companies.
According to the provisions of the Energy Act, the annual report shall also include the rules
and criteria based on which assets, liabilities, revenue and expenses are allocated to individual
energy activities.
11.2 Accounting policies for separating financial statements
In separating financial statements, the principles of prudence and accuracy were taken into
account. The Company maintains separate accounting records for each activity, thus enabling
the close monitoring of all forms of revenue and expenses. At the same time, the Company
discloses in its books fixed assets separately for individual activities.
The Company prepares separate financial statements in the electricity segment for the
following activities:
Production of electricity – energy activity, market activity;
Distribution of electricity (closed distribution system) – energy activity, regulated activity,
acquired the status of a closed distribution system in the area of the Ravne ironworks and
Štore ironworks;
Supply of electricity – energy activity, market activity.
The Company prepares separate financial statements in the natural gas segment for the
following activities:
Distribution of natural gas (distribution system operator) – energy activity, regulated
activity, optional service of general economic interest;
Distribution of natural gas (closed distribution system) – energy activity, regulated activity,
acquired the status of a closed distribution system in the area of the Štore ironworks;
Supply of natural gas – energy activity, market activity.
The Company prepares separate financial statements in the heat segment for the following
activities:
Heat generation – energy activity, regulated activity;
Distribution and supply of heat – energy activity, regulated activity, optional service of
general economic interest.
The Company also prepares separate financial statements in the municipal and wastewater
treatment segment.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 314
Among other activities, the Company discloses all other marketing activities.
Within the Company, two areas are organised in the energy segment - the area of Energy and
Environmental Systems and the area of Energy Product and Electricity Management, where
the listed energy activities are carried out. The areas are organised separately, each area
having its own executive director and its own specifics of organisation.
The Company carries revenues and expenses in orders, cost centres and profit centres.
Assets and liabilities are carried under profit centres. Intangible non-current assets, property,
plant and equipment and investment property that have already been activated are carried
under tasks or cost centres.
Within an individual energy activity, the Company has open profit centres up to the level of an
individual local community or individual energy system, so that we have recognised revenues
and expenses directly on individual activities as much as possible. Each activity has a profit
centre – general, where the total income and expenses for each individual activity are
recorded. The sum of all the income at profit centres represents the direct revenues of an
individual activity, and the sum of all expenses represents the direct costs of an individual
activity.
Criterion 1:
Direct costs by activity, together with direct costs at the profit centre – general, are the basis
for the division of indirect income and indirect costs and expenses.
The Energy and Environmental Systems organisational unit supports Energy and
Environmental Systems, where general costs belonging to the entire area are carried.
Within this area, we perform energy activities: production of electricity, distribution of electricity
– closed distribution system, distribution of natural gas (as an open and closed distribution
system), heat generation and heat distribution. In addition to these activities, we also perform
the activity of municipal and wastewater treatment. We also perform other energy marketing
activities, which the Company presents in separate financial statements among other activities.
Criterion 2:
Direct costs by individual activity, together with direct costs at the profit centre – general,
represent the sum of individual activities performed in Energy and Environmental Systems and
are the basis for the division of indirect costs and expenses carried under support of Energy
and Environmental Systems - 1st coverage for Energy and Environmental Systems.
The Energy Product and Electricity Management organisational unit supports Energy Product
and Electricity Management - general, where general costs belonging to the entire area are
recorded.
Within this area, we perform energy activities: supply of electricity, supply of natural gas (as
open and closed distribution systems), heat generation, and heat distribution. We also perform
other energy marketing activities, which the Company presents in separate financial
statements among other activities.
Criterion 3:
Direct costs by individual activity, together with direct costs at the profit centre - general,
represent the sum of individual activities performed in the area of Energy Product and
Electricity Management and form the basis for the division of indirect costs and expenses
recorded in Energy Product and Electricity Management - General - 1st coverage for the area
of Energy Product and Electricity Management.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 315
The Company has organised support functions, which the Company defines as support
functions of energy activities for the areas of Energy and Environmental Systems and Energy
Product and Electricity Management:
“Customer Support and Sales-Contact Centre”,
“Back office”,
“IT” and “Business intelligence”.
They are recorded by individual cost centres and are first divided into the Energy and
Environmental Systems and Energy Product and Electricity Management organisational units
(and further by individual activity) according to the applied criteria 4 and 5.
Criterion 4:
Support functions, which the Company defines as support functions of Energy and
Environmental Systems and related costs - 2nd coverage for Energy and Environmental
Systems are in total:
Customer support – PO - 95 percent of all costs;
Customer support – FO - 95 percent of all costs;
Back office – 95 percent of all costs;
IT – general – 15 percent of all costs;
Business Intelligence - 95 percent of all costs.
Sum of costs - 2nd coverage for Energy and Environmental Systems represent indirect costs
from the 2nd coverage.
Direct costs by individual activity, together with direct costs at the profit centre – general,
represent the sum of individual activities performed in Energy and Environmental Systems and
are the basis for the division of the indirect costs and expenses carried under the support
functions of Energy and Environmental Systems - 2nd coverage for Energy and Environmental
Systems.
Criterion 5:
Support functions, which the Company defines as support functions of Energy Product and
Electricity Management and related costs - 2nd coverage for Energy Product and Electricity
Management are in total:
Customer support – PO - 5 percent of all costs;
Customer support – FO - 5 percent of all costs;
Back office – 5 percent of all costs;
IT – general – 1 percent of all costs;
Business Intelligence - 5 percent of all costs.
Sum of costs - 2nd coverage for Energy Product and Electricity Management represent indirect
costs from the 2nd coverage.
Direct costs by individual activity, together with direct costs at the profit centre – general,
represent the sum of individual activities performed in the field of Energy Product and Electricity
Management and are the basis for the division indirect costs and expenses carried under the
support functions of Energy Product and Electricity Management - 2nd coverage for Energy
Product and Electricity Management.
All costs that belong to other support functions in the Company as a whole or in shares that
are organised in the Company are shown among the other activities of the Company.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 316
Criterion 6:
Financial expenses for interest on loans are calculated and attributed to an individual activity.
The basis for calculating interest is 50 percent of the average value of the non-current assets
of an individual activity at the beginning of the year and at the end of the year. The interest rate
is calculated as the average annual interest rate applicable to the Company for long-term and
short-term loans.
Criterion 7:
The statement of profit or loss was divided in the following steps:
Sales revenue includes revenue from the sale of goods, revenue from the sale of services,
other sales revenue and internal revenue and is divided by individual activities directly by
recorded revenues (profit centre).
The cost of goods sold represents the cost of energy products sold, goods sold and
materials sold and is carried directly under each activity; the purchase value, which is
carried under the cost centre, which is defined as indirect, is distributed by individual activity
according to criteria 1 to 5.
Costs of materials are all direct costs of materials that fall on an individual activity; an
individual activity also accounts for a proportional share of indirect costs of materials with
criteria 1 to 5 applied.
Costs of services include all the direct costs of services that fall on an individual activity;
an individual activity also accounts for a proportionate share of the indirect costs of services
with criteria 1 to 5 applied.
Labour costs are direct labour costs that fall on an individual activity; an individual activity
also accounts for a proportionate share of indirect labour costs with criteria 1 to 5 applied.
The depreciation and amortisation charge is the direct depreciation and amortisation
charge that falls on an individual activity; an individual activity also accounts for a
proportionate share of the indirect depreciation and amortisation charge with criteria 1 to 5
applied.
Other costs are direct other costs that fall on an individual activity; an individual activity
also accounts for a proportionate share of indirect other costs and indirect internal costs
with criteria 1 to 5 applied.
Other revenue is direct other revenue that falls on an individual activity; an individual
activity also accounts for a proportionate share of indirect other revenue with criteria 1 to 3
applied.
Other expenses are direct other revenue that relate to an individual activity; an individual
activity also accounts for a proportionate share of indirect other expenses with criteria 1 to
3 applied.
Finance income from dividends paid by subsidiaries, associates and jointly controlled
entities is carried under separate financial statements under the other activities of the
Company.
Other finance income is carried under separate financial statements under the other
activities of the Company.
Other finance expenses, other than finance expenses from accrued interest on long-term
and short-term loans, are carried under separate financial statements under the other
activities of the Company.
The calculated tax on an individual activity is calculated according to the applicable tax
rate. The difference to the total tax charged for the Company is carried under separate
financial statements under the other activities of the Company.
Deferred tax is carried under separate financial statements under the other activities of the
Company.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 317
Criterion 8:
The statement of financial position was divided in the following steps:
Non-current (long-term) assets
Intangible assets are carried directly under individual activities and the indirect part is
recognised among other activities;
Right-of-use assets are carried directly under individual activities and the indirect part is
recognised among other activities;
Items of property, plant and equipment are carried directly under individual activities and
the indirect part is recognised among other activities;
Investment property is carried directly under individual activities and the indirect part is
recognised among other activities;
Other non-current (long-term) assets are carried under other activities.
Current assets
Operating receivables are carried directly under individual activities.
Other current assets are carried under other activities.
Equity
Called-up capital and capital surplus were determined on 31 December 2015 as the
difference between assets and liabilities at that time
Net profit or loss for the year is calculated in the statement of profit or loss for the year for
each activity;
Other equity items are carried under other activities.
Non-current liabilities
Provisions for employee post-employment and other long-term benefits are carried under
other activities;
Other provisions are carried directly under individual activities:
Long-term deferred revenue is carried directly under individual activities:
Long-term deferred revenue is carried directly under individual activities:
Financial liabilities that are not non-current financial liabilities from the calculated balance
of long-term loans by individual activity are carried under separate financial statements
under the other activities of the Company;
Lease liabilities are carried directly under individual activities;
Operating liabilities are carried directly under individual activities;
Deferred tax liabilities are carried under other activities.
Current liabilities
Other financial liabilities, other than current financial liabilities from accrued interest on
short-term loans are carried under separate financial statements under the other activities
of the Company.
Lease liabilities are carried directly under individual activities;
Operating liabilities are carried directly under individual activities.
Corporate income tax liabilities are carried under other activities.
Contract liabilities are carried directly under individual activities.
Other liabilities are carried directly under individual activities.
Criterion 9:
Current and non-current financial liabilities from loans are calculated and attributed to an
individual activity. The basis for calculating the balance of loans is 50 percent of the average
value of the non-current assets of an individual activity at the beginning of the year and at the
end of the year. Of this calculated value of loans, we carry 80 percent of the value among non-
current financial liabilities and 20 percent of the value among current financial liabilities.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 318
Criterion 10:
The sum of all the items of Non-current (long-term) assets and Current assets represents Total
assets.
The sum of the Equity, Non-current liabilities and Current liabilities represents the Total
liabilities.
If we determine the value of Assets lower than Liabilities, the calculated difference is carried
under other receivables by individual activity.
If we determine the value of Assets higher than Liabilities, the calculated difference is carried
under other operating liabilities by individual activity.
The criteria apply from the 2020 financial year onwards.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 319
11.3 Presentation of financial statements by activities of Petrol d.d., Ljubljana
11.3.-1 Statement of profit or loss by activity
(in EUR)
Natural gas
distribution
system operator
Natural gas
supply
Closed natural
gas distribution
system Heat generation Heat distribution
Electricity
production
Electricity
supp l y
Closed
electricity
distribution
syste m
Municipal
wastewater and
run-off
rainwater
treatment Other activities Total
Sales revenue
13,171,390
38,496,323
663,259
3,797,189
1,994,733
2,834,628
229,672,272
4,191,254
2,938,049
3,259,260,693
3,557,019,790
Cost of goods sold
-
(44,509,086)
-
-
6,683
-
(232,854,336)
-
(1,277)
(2,919,171,723)
(3,196,529,739)
Costs of materials
(2,375,165)
(147)
(395,381)
(2,244,255)
(472,734)
(1,413,989)
(1,082)
(1,792,681)
(395,633)
(14,727,697)
(23,818,764)
Costs of services
(847,487)
(68,555)
(23,906)
(528,776)
(251,058)
(354,313)
(1,003,527)
(275,573)
(645,074)
(110,206,720)
(114,204,989)
Labour costs
(1,174,637)
(83,035)
(103,255)
(903,407)
(913,542)
(212,292)
(305,403)
(835,837)
(500,809)
(73,286,774)
(78,318,991)
Depreciation and amortisation
(2,802,293)
(7,736)
(30,479)
(551,019)
(606,992)
(428,961)
(44,265)
(715,623)
(504,472)
(41,004,831)
(46,696,671)
Other costs
(846,148)
(297)
(4,501)
(178,438)
(41,438)
(168,312)
(20,926,707)
(112,007)
(77,421)
(13,308,080)
(35,663,349)
Operating costs
(8,045,730)
(159,770)
(557,522)
(4,405,895)
(2,285,764)
(2,577,867)
(22,280,984)
(3,731,721)
(2,123,409)
(252,534,102)
(298,702,764)
Other revenue
67,481
-
-
16,575
36,261
-
-
1,527
3,725
274,663,852
274,789,421
Other expenses
-
-
-
-
-
-
-
-
-
(236,292,875)
(236,292,875)
Operating profit or loss
5,193,141
(6,172,533)
105,737
(592,131)
(248,087)
256,761
(25,463,048)
461,060
817,088
125,925,845
100,283,833
Finance income from dividends paid by subsidiaries,
associates and jointly controlled entities
3,287,054 3,287,054
Other finance income
-
-
-
-
-
-
-
-
-
23,508,629
23,508,629
Other finance expenses
(396,788)
(64)
(3,070)
(42,314)
(87,444)
(24,866)
(397)
(115,742)
(40,011)
(42,971,477)
(43,682,173)
Net finance expense
(396,788)
(64)
(3,070)
(42,314)
(87,444)
(24,866)
(397)
(115,742)
(40,011)
(19,462,848)
(20,173,544)
Profit before tax
4,796,353
(6,172,597)
102,667
(634,445)
(335,531)
231,895
(25,463,445)
345,318
777,077
109,750,051
83,397,343
Tax expense
(911,307)
1,172,793
(19,506)
120,546
63,751
(44,061)
4,838,054
(65,611)
(147,645)
(23,788,882)
(18,781,868)
Deferred tax
-
-
-
-
-
-
-
-
-
1,867,467
1,867,467
Corporate income tax
(911,307)
1,172,793
(19,506)
120,546
63,751
(44,061)
4,838,054
(65,611)
(147,645)
(21,921,415)
(16,914,401)
Net profit for the year 3,885,046 (4,999,804) 83,161 (513,899) (271,780) 187,834 (20,625,391) 279,707 629,432 87,828,636 66,482,942

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 320
11.3.-2 Statement of financial position by activity
(in EUR)
Natural gas
distribution
system operator
Natural gas
supply
Closed natural
gas distribution
system Heat generation Heat distribution
Electricity
production
Electricity
supply
Close d
electricity
distribution
syste m
Municipal
wastewater and
run-off
rainwater
treatment Other activities Total
ASSETS
Non-curre nt (long-te rm) assets
Intangible assets and right to use of leased assets
39,761,740
3,789
-
1,823,301
5,768,532
-
21,644
19,299
3,860,245
132,141,091
183,399,641
Property, plant and equipment
469,912
449
309,417
2,496,690
3,098,682
2,392,236
6,188
11,799,139
33,271
345,656,173
366,262,157
Investment property
-
-
-
30,226
-
-
-
-
-
12,305,768
12,335,994
Investments in subsidiaries
-
-
-
-
-
-
-
-
-
553,970,331
553,970,331
Investments in jointly controlled entities
-
-
-
-
-
-
-
-
-
210,000
210,000
Investments in associates
-
-
-
-
-
-
-
-
-
26,610,477
26,610,477
Financial assets at fair value through other comprehensive
income
- - - - - - - - - 2,117,914 2,117,914
Financial receivables
-
-
-
-
-
-
-
-
-
83,299,185
83,299,185
Operating receivables
-
-
-
-
-
-
-
-
-
8,219,107
8,219,107
Deferred tax assets
-
-
-
-
-
-
-
-
-
8,155,514
8,155,514
40,231,652
4,238
309,417
4,350,217
8,867,214
2,392,236
27,832
11,818,438
3,893,516
1,172,685,560
1,244,580,320
Current assets
Inventories
-
-
-
-
-
-
-
-
-
96,573,239
96,573,239
Contract assets
-
-
-
-
-
-
-
-
-
7,604,649
7,604,649
Financial receivables
-
-
-
-
-
-
-
-
-
16,181,049
16,181,049
Operating receivables
27,832,956
53,592,205
807,990
5,532,442
2,457,790
154,231
151,216,645
11,458,212
624,164
132,153,256
385,829,891
Corporate income tax assets
-
-
-
-
-
-
-
-
-
-
-
Financial assets at fair value through profit or loss
-
-
-
-
-
-
-
-
-
34,561,544
34,561,544
Financial assets at fair value through other comprehensive
-
-
-
-
-
-
-
-
-
1,100,446
1,100,446
Prepayments and other assets
-
-
-
-
-
-
-
-
-
50,728,784
50,728,784
Cash and cash equivalents
-
-
-
-
-
-
-
-
-
57,567,397
57,567,397
27,832,956
53,592,205
807,990
5,532,442
2,457,790
154,231
151,216,645
11,458,212
624,164
396,470,364
650,146,999
Total assets
68,064,608
53,596,443
1,117,407
9,882,659
11,325,004
2,546,467
151,244,477
23,276,650
4,517,680
1,569,155,924
1,894,727,319

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 321
(in EUR)
Natural gas
distribution
system operator
Natural gas
supply
Closed natural
gas distribution
system Heat generation Heat distribution
Electricity
production
Electricity
supply
Close d
electricity
distribution
syste m
Municipal
wastewater and
run-off
rainwater
treatment Other activitie s Total
EQUITY AND LIABILITIES
Equity attributable to owners of the controlling company
Called-up capital
16,544,318
2,569,303
(2,474)
3,597,624
1,000,013
(2,658,811)
5,794,600
4,508,757
-
20,887,647
52,240,977
Capital surplus
16,544,318
2,569,303
(2,474)
3,597,624
1,000,013
(2,658,811)
5,794,600
4,508,757
-
49,638,055
80,991,385
Legal reserves
-
-
-
-
-
-
-
-
-
61,749,884
61,749,884
Reserves for own shares
-
-
-
-
-
-
-
-
-
4,708,359
4,708,359
Own shares
-
-
-
-
-
-
-
-
-
(2,604,670)
(2,604,670)
Other revenue reserves
-
-
-
-
-
-
-
-
-
340,914,615
340,914,615
Fair value reserve
-
-
-
-
-
-
-
-
-
39,809,449
39,809,449
Hedging reserve
-
-
-
-
-
-
-
-
-
(1,136,850)
(1,136,850)
Retained earnings
-
-
-
-
-
-
-
-
-
33,241,471
33,241,471
Net profit or loss for the year
3,885,046
(4,999,804)
83,161
(513,899)
(271,780)
187,834
(20,625,391)
279,707
629,432
21,345,694
-
Total equity
36,973,682
138,802
78,213
6,681,349
1,728,246
(5,129,788)
(9,036,191)
9,297,221
629,432
568,553,654
609,914,620
Non-current liabilities
Provisions for employee post-employment and other long-
term benefits
- - - - - - - - - 7,969,809 7,969,809
Other provisions
-
-
-
-
-
-
-
-
-
17,606,490
17,606,490
Long-term deferred revenue
-
-
-
107,422
253,431
119,000
-
2,034
-
28,977,184
29,459,071
Financial liabilities
16,532,821
2,656
127,902
1,763,081
3,643,501
1,036,096
16,560
4,822,593
1,667,119
374,943,432
404,555,761
Lease liabilities
-
59
-
-
-
-
335
-
-
26,735,139
26,735,533
Operating liabilities
637,782
-
-
-
-
-
-
-
-
5,024,000
5,661,782
17,170,603
2,715
127,902
1,870,503
3,896,932
1,155,096
16,895
4,824,627
1,667,119
461,256,054
491,988,446
Current liabilities
Financial liabilities
4,133,205
664
31,976
440,770
910,875
259,024
4,140
1,205,648
416,780
265,082,680
272,485,762
Lease liabilities
-
-
-
-
-
-
-
-
-
2,717,596
2,717,596
Operating liabilities
9,184,573
46,494,196
844,673
833,952
4,680,466
6,169,113
135,688,529
7,947,822
1,799,431
228,865,177
442,507,932
Corporate income tax liabilities
-
-
-
-
-
-
-
-
-
16,353,199
16,353,199
Contract liabilities
6,803
16,829
-
-
253
-
168,793
-
2,551
7,710,609
7,905,838
Other liabilities
595,742
6,943,237
34,643
56,085
108,232
93,022
24,402,311
1,332
2,367
18,616,955
50,853,926
13,920,323
53,454,926
911,292
1,330,807
5,699,826
6,521,159
160,263,773
9,154,802
2,221,129
539,346,216
792,824,253
Total liabilities
31,090,926
53,457,641
1,039,194
3,201,310
9,596,758
7,676,255
160,280,668
13,979,429
3,888,248
1,000,602,270
1,284,812,699
Total equity and liabilities
68,064,608
53,596,443
1,117,407
9,882,659
11,325,004
2,546,467
151,244,477
23,276,650
4,517,680
1,569,155,924
1,894,727,319

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana 2021 – Financial Report 322
11.3.-3 Statement of cash flows by activity
(in EUR)
Natural gas
distribution
system operator
Natural gas
supply
Closed natural
gas distribution
system Heat generation Heat distribution
Electricity
production
Electricity
supply
Close d
electricity
distribution
syste m
Municipal
wastewater and
run-off
rainwater
treatment Other activities Total
Cash flows from operating activities
Net cash from (used in) operating activities
998,280
2,998
12,870
478,932
211,929
57,819
17,524
355,275
(4,077)
63,806,406
65,937,956
Cash flows from investing activities
Net cash from (used in) investing activities
(601,492)
(2,934)
(9,801)
(436,617)
(124,485)
(32,953)
(17,127)
(239,534)
44,088
(244,755,057)
(246,175,912)
Cash flows from financing activities
Net cash from (used in) financing activities
(396,788)
(64)
(3,069)
(42,315)
(87,444)
(24,866)
(397)
(115,741)
(40,011)
193,845,523
193,134,828
Increase/(decrease) in cash and cash equivalents
-
-
-
-
-
-
-
-
-
12,896,872
12,896,872
Changes in cash and cash equivalents
At the beginning of the year
-
-
-
-
-
-
-
-
-
44,670,525
44,670,525
Cash acquired through mergers by absorption
-
-
-
-
-
-
-
-
-
-
-
Increase/(decrease)
-
-
-
-
-
-
-
-
-
12,896,872
12,896,872
At the end of the year
-
-
-
-
-
-
-
-
-
57,567,397
57,567,397