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ANNUAL
REPORT
of the Petrol
Group and
Petrol d.d.,
Ljubljana,
2022

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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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TABLE OF CONTENTS
INTRODUCTION .................................................................................................................... 4
1. Business highlights of 2022 ............................................................................................5
2. Letter from the President of the Management Board ......................................................7
3. Statement of the Management’s Responsibility ............................................................ 11
4. Report of the Supervisory Board .................................................................................. 12
5. The Petrol Group in its region ....................................................................................... 16
BUSINESS REPORT ........................................................................................................... 18
6. Strategic Orientation .................................................................................................... 19
7. Plans for 2022 ............................................................................................................... 23
8. Corporate governance statement ................................................................................. 25
9. Non-financial statement ................................................................................................ 44
10. Performance analysis of the Petrol Group 2022 .......................................................... 66
11. Alternative performance measures ............................................................................. 87
12. Events after the end of the accounting period ............................................................. 88
13. Risk management ....................................................................................................... 90
14. Operations by product groups .................................................................................. 101
15. Investments .............................................................................................................. 124
16. Share and ownership structure ................................................................................. 127
17. Internal Audit ............................................................................................................. 134
18. Information technology .............................................................................................. 136
SUSTAINABLE DEVELOPMENT ...................................................................................... 139
19. Strategic orientations and goals for the sustainable development of the Petrol Group
....................................................................................................................................... 140
20. Responsibility towards employees ............................................................................ 143
21. Responsibility towards customers ............................................................................. 151
22. Responsibility to the natural environment .................................................................. 159
23. Quality control ........................................................................................................... 163
24. Social responsibility .................................................................................................. 165
THE PETROL GROUP ....................................................................................................... 168
25. Companies in the Petrol Group ................................................................................. 169
26. The parent company ................................................................................................ 170
27. Subsidiaries ............................................................................................................. 172
28. Jointly Controlled Entities .......................................................................................... 181
29. Associates ................................................................................................................ 181
FINANCIAL REPORT ........................................................................................................ 182

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INTRODUCTION

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1. Business highlights of 2022
The Petrol Group Unit 2022 2021
Index
2022/2021
Sales revenue EUR million 9,456.7 4,960.1 191
Adjusted gross profit
1
EUR million 393.4 543.4 72
Operating profit EUR million -7.9 151.1 -
Net profit EUR million -2.7 124.5 -
Equity EUR million 860.2 908.7 95
Total assets EUR million 2,740.6 2,403.8 114
Net debt/Equity
1
0.60 0.56 108
Net debt/EBITDA
1, 2
5.4 2.1 252
Return on equity (ROE)
1
% -0.3 14.3 -
Return on capital employed (ROCE)
1
% -0.5 10.8 -
Added value per employee
1, 2
EUR thousand 41.3 70.3 59
Earnings per share attributable to owners of the controlling company
3
EUR 0.1 2.9 -
Share price as at last trading day of the year
3
EUR 20.0 25.4 79
Volume of fuels and petroleum products sold thousand tons 4,095.2 3,284.9 125
Volume of natural gas sold TWh 18.9 35.4 54
Volume of electricity sold TWh 12.0 13.8 87
Revenue from the sales of merchandise and services EUR million 520.1 469.5 111
3
2021 - recalculated by taking into account the share split.
1
Alternative performance measure (APM) as defined in chapter Alternative Performance Measures.
2
EBITDA = Operating profit + Net Allowances for operating receivables + Depreciation and amortisation charge.
The Petrol Group Unit
31 December
2022
31 December
2021
Index
2022/2021
Number of employees 6,224 6,237 100
Number of service stations 594 593 100
Number of e-charging points operated by the Petrol Group 417 296 141
Number of electricity customers thousand 225.7 224.6 101
Number of natural gas customers (data for Geoplin d.o.o., Ljubljana are not included) thousand 60.4 47.4 128

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EBITDA Net profit or loss
Net debt/EBITDA Structure of invested assets
Volume of fuels and petroleum products sold Number of service stations

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2. Letter from the President of the Management Board
Dear shareholders, business partners and co-workers,
2022 was a special year in many respects. It was marked by extraordinary events in the
geopolitical and economic environment, which could not have been foreseen and that left a
strong mark on the European and Slovenian economies. The regulation of energy product
prices to mitigate the effects of the energy crisis had a negative impact on the Petrol Group’s
business performance. It deviates from the ambitious Petrol Group Business Plan 2022, as the
business situation was significantly different from the assumptions made at the time of the
annual planning.
Concentration of emergencies: energy crisis, energy transition and the price regulation
of energy products
2022 has been a very challenging year for the economy. The heightened geopolitical situation
due to the war in Ukraine, the energy crisis and rising inflation have created numerous and
complex challenges. EU Member States have sought to reduce the burden of the extremely
high energy product price increases on their populations and economies by regulating energy
product prices, and have sought ways to replace Russian energy supplies, including by placing
greater emphasis on the provision and use of renewable energy sources.
A well-established risk management system, enhanced cooperation with the Supervisory
Board and a swift but measured response to extremely challenging business conditions have
helped the Petrol Group mitigate the impact of negative developments in the business
environment as much as possible. In the Petrol Group, 2022 will be remembered not only for
the challenges posed by the crisis, but also for the successes that have strengthened us in
these difficult circumstances.
The effective integration of Petrol Group companies
With the acquisition of Crodux derivati dva d.o.o. in 2021, Petrol has become the second
largest supplier of petroleum products in Croatia with 202 points of sale. The legal merger of
Petrol d.o.o. with the Croatian company Petrol d.o.o., one of the largest business acquisitions
in the Petrol Group’s history, was completed at the beginning of November 2022, two months
ahead of schedule. With more than 2,100 employees, Petrol d.o.o. is one of the largest
Croatian companies and strengthens Petrol’s position as a comprehensive energy solutions
provider in Croatia.
In 2021, the acquisition of E 3, d.o.o. strengthened our market share and expertise in the
electricity market. In 2022, we enhanced the merger by integrating the entire business of E 3,
d.o.o. into Petrol’s information system.
We paid particular attention to the management of Geoplin d.o.o. Ljubljana, and the measures
taken to stabilise the business and mitigate the operational damage resulting from the non-
delivery of natural gas under the long-term agreement with Russia’s Gazprom. Geoplin d.o.o.
Ljubljana has signed a medium-term agreement with Sonatrach for the supply of natural gas
from Algeria to Slovenia in November 2022. This agreement is an important step towards
ensuring the further diversification of natural gas supply sources, thus further increasing the
security of supply for Geoplin d.o.o. Ljubljana’s customers.

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In 2022, we successfully completed the implementation of the SAP ERP system in all the key
companies of the Petrol Group. By further introducing process organisation and functional
management throughout the Petrol Group, we have strengthened synergies and pursued a
more uniform approach in the markets of our subsidiaries.
Steadfastly moving towards a zero-carbon future
We remain committed to the green transition, following our strategic vision to become an
integrated partner in the energy transition with an excellent customer experience.
In February 2022, Petrol’s Supervisory Board approved an investment in solar power plants in
Knin, Croatia. It consists of three large solar power plants with a total installed capacity of 22
MW and an expected electricity production of 29 GWh, which will be operational by summer
2023. In the Kraljevo region of Serbia, the Grajići small hydropower plant completed its test
run and went into commercial operation at the beginning of the year. The plant has a capacity
of 1.0 MW and is expected to produce around 3.2 GWh per year, enough to supply 1,000
households in Serbia. In May, together with Cinkarna Celje, we commissioned Slovenia’s
largest solar power plant, which consists of 2,222 solar modules with a total rated output of 1
MW. It is expected to produce 1,160 MWh of electricity per year, enough to supply around 330
average households. In Serbia, we and our partners successfully completed a project to
renovate public lighting in the municipality of Kikinda in July 2022. This is the sixth project of
its kind in Serbia and the 30
th
in Petrol’s portfolio of energy-efficient public lighting projects in
the region. In 2022, the first phase of the Petrol Green project - the installation of solar power
plants on the roofs of our points of sale and facilities - was launched. The aim is to gradually
equip the entire Petrol network in Slovenia with solar power plants.
We launched a project to digitise the Oil & Gas supply chain for service stations, heating oil
and gas deliveries and cylinder sales, which will be completed in spring 2024. It will automate,
integrate and digitise logistics processes. The project will also have an important sustainability
aspect - up to 10 percent fewer emissions per year.
At the point of sale, we also continued to build a quality and sustainable relationship with our
customers. Q Max fuel was named Product of the Year for the third time in February 2022,
and for the first time, the “Na Poti” app was also awarded this title. In June, we became
one of the first energy companies in Europe to receive the European Quality Certification
EQTM from the European Organisation for Quality (EOQ) for the Q Max family of fuels.
Record sales under energy product price regulation fell short of targets
High energy prices and rising inflation have led to the government regulation of fuel, electricity
and natural gas prices in all markets where the Group operates (in Slovenia alone, no less
than 37 regulations were adopted for this purpose in 2022), which has had a significant impact
on the Group’s business and thus on the achievement of the Petrol Group’s business plan for
2022. The performance of Geoplin d.o.o. Ljubljana, which was exposed to the non-delivery of
Russian natural gas and the high volatility of natural gas prices, also had a significant negative
impact on the Petrol Group’s business performance.
For 2022, the Petrol Group planned sales revenues of EUR 5.9 billion, with the total sales
revenues reaching a record EUR 9.5 billion, an increase of 91 percent compared to 2021. In
addition to the higher purchase and selling prices of fuels and energy products, the increase

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in sales revenues compared to the previous year was also driven by low-cost volume sales of
fuels and petroleum products and the incorporation of Crodux derivati dva d.o.o. into the Petrol
Group. The Petrol Group sold 4.1 million tons of fuels and petroleum products in 2022, an
increase of 25 percent compared to the previous year. Due to the high purchase prices of all
energy products and the impact of the regulation of motor fuels and other energy products, this
increase in sales is not reflected in the adjusted gross profit. It amounted to EUR 393.4
million, down 28 percent year-on-year.
The Petrol Group’s EBITDA reached EUR 96.3 million in 2022, a decrease of 60 percent
compared to 2021. The largest negative impact on this was due to the regulation of motor fuels
in all markets, amounting to EUR 188.9 million, while the Petrol Group’s EBITDA was also
affected by the damage caused to Geoplin d.o.o. Ljubljana due to the non-delivery of natural
gas and the price regulation of other energy products in the Slovenian and Croatian markets.
In 2022, the Petrol Group achieved a net profit of EUR -2.7 million.
The changed circumstances have also required the Petrol Group to adjust its investment funds.
In 2022, investments amounted to EUR 59.8 million, of which 48 percent for energy transition
projects, while the amount set aside for further development in the 2022 plan stood at EUR
100 million.
We are working to obtain compensation for the economic damage caused to Petrol by the
regulation. Although we have been actively seeking an agreement, we have so far been
unsuccessful and have had to take the legal route. In both Slovenia and Croatia, an out-of-
court settlement has been submitted to the state attorney’s office, amounting to EUR 106.9
million in Slovenia and EUR 55.9 million in Croatia.
Against this background, it is encouraging that, despite the tight operating conditions, S&P
Global Ratings has reaffirmed Petrol d.d., Ljubljana’s »BBB-« long-term rating, its »A-3«
short-term credit rating and its »stable« credit rating outlook in December 2022.
In an effort to make the Petrol share more attractive to smaller investors, a successful 1:20
split of the PETG share was carried out in November 2022. At the end of 2022, the Ljubljana
Stock Exchange awarded Petrol d.d., Ljubljana the First Listing Share of the Year Award.
In 2022, despite the challenging environment, we paid our highest ever gross dividend of EUR
30 per share to shareholders for 2021.
An optimistic and ambitious partner for households, businesses and the public sector
In 2023, uncertainty about the supply and price of energy products has diminished, the outlook
for economic growth has improved accordingly, and inflation is expected to moderate
gradually, although it remains high in the early months of 2023.
Even though we are facing a challenging period ahead due to the still tight energy markets, we
are cautiously optimistic about 2023. The Petrol Group’s business will continue to be
significantly impacted by the regulation of fuel and energy product sales prices, tighter
purchasing conditions and inflation, which will be addressed by adapting business processes
and optimising costs. In addition, a number of factors in the international and domestic
environment will also have an impact on business: the uncertain geopolitical and economic
situation, the state of the global oil and energy markets, and movements in the US dollar. In

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line with our strategy until 2025, we continue to pursue our core objectives of achieving
business growth while remaining committed to sustainable development. Slovenia, Croatia and
Serbia remain key markets for Petrol. In 2023, we plan to have a stable business and a positive
result at the end of the year by meeting all our financial commitments.
We have long warned that regulation has a negative impact on the Petrol Group’s business
and, consequently, on the Company’s stakeholders. We will work to deregulate or at least
adapt regulation to models that are dynamic and take into account the rising operating costs.
Margins that are too low jeopardise our business objectives such as productivity growth, sales
and green transformation. Only with a sustainable pricing model can the Petrol Group compete
in the market, invest in development, remain a supporter of socio-economic life, and at the
same time provide stable returns to shareholders and secure employment for more than 6,000
employees and business cooperation for suppliers.
The year ahead will not be easy. Our goals are ambitious but achievable. I am confident that
with the quality of our team at Petrol Group, we will be able to achieve our goals. We thank all
our customers for continuing to choose Petrol to meet their energy needs, our shareholders
for their confidence even in difficult circumstances, and our business partners and other
stakeholders for their support and cooperation. As one of the largest energy companies in the
region, we at the Petrol Group will continue to strive to provide strong support to households,
businesses and the public sector, both in meeting the challenges of the energy crisis and in
the transition to a zero carbon future.
Nada Drobne Popović
President of the Management Board
HIGHLIGHTS:
The heightened geopolitical situation due to the war in Ukraine and the energy crisis have
brought numerous and complex challenges.
The legal merger of Crodux derivati dva d.o.o. with the Croatian company Petrol d.o.o.,
one of the largest business acquisitions of the Petrol Group, was completed at the
beginning of November 2022, two months ahead of schedule.
A major focus was placed on stabilising the operations of Geoplin d.o.o. Ljubljana.
At the end of 2022, the Ljubljana Stock Exchange awarded Petrol d.d., Ljubljana with the
prestigious First Listing Share of the Year Award.
Due to the high purchase prices of all energy products and the impact of the regulation of
motor fuels and other energy products, the increase in sales revenues is not reflected in
the adjusted gross profit.
We are working to obtain compensation for the economic damage caused to the Petrol
Group by the regulation of energy product prices.
The year ahead will not be easy. Our goals are ambitious but achievable. With the quality
of our team at Petrol Group, we will be able to achieve our goals.

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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 2022, 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:
the financial report of the Petrol Group and Petrol d.d., Ljubljana for the year 2022 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;
the business report of the Petrol Group and Petrol d.d., Ljubljana for the year 2022 gives
a fair view of the development and results of the Company’s operations and its financial
position, including a description of the material risks that the company Petrol d.d., Ljubljana
and other consolidated companies are exposed to as a whole.
Nada Drobne Popov
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, 6 April 2023

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4. Report of the Supervisory Board
Composition of the Supervisory Board in 2022
The Supervisory Board of Petrol d.d., Ljubljana, in its current composition, has been
functioning since 22 April 2021. In 2022, the Supervisory Board continued to be composed of
the President, Janez Žlak, the Deputy President, Borut Vrviščar, and the Members Mladen
Kaliterna, Alenka Urnaut, Mário Selecký, Aleksander Zupančič, Robert Ravnikar, Marko Šavli
and Alen Mihelčič. The composition is diverse in terms of education, work experience and
personality traits, all of which allow for an effective professional complementarity in the
exchange of views and opinions.
In 2022, all the Supervisory Board members attended meetings regularly and virtually all
decisions were taken unanimously. The Supervisory Board members thoroughly prepared
themselves for the topics discussed, gave constructive proposals, and adopted decisions 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 both Supervisory Board
committees and their substantive input. The Supervisory Board kept stakeholders informed on
a regular basis.
The Supervisory Board had 17 meetings in 2022. In addition to the seven regular meetings
scheduled for 2022 according to the financial calendar, it held a further 10 extraordinary
meetings, virtually all of which were devoted to the emergency situation regarding energy
product supply, the regulation of energy product prices and their impact on the business and
operations of the subsidiary Geoplin d.o.o. Ljubljana.
Throughout the year, the Supervisory Board regularly monitored the Petrol Group’s operations
and its development in a challenging global and economic environment, focusing on the
identification and management of business risks that are important to the future success of the
Group’s business.
The Most Important Topics Discussed at the Supervisory Board’s Meetings in 2022
In February 2022, the Supervisory Board held an extraordinary meeting, not included in the
financial calendar, in order to receive presentations and decide on certain investments. At this
meeting, the Board also took note of the report of the Works Council, and a new version of the
Corporate Governance Policy of Petrol d.d., Ljubljana, was reviewed, amended and published.
In March 2022, the Supervisory Board approved the audited Annual Report of the Petrol Group
and Petrol d.d., Ljubljana 2021, discussed the proposal on the allocation of accumulated profit,
the proposal on the Petrol share split, and approved the convening of the 34
th
Annual General
Meeting. The Supervisory Board was also informed about the current energy product supply
situation in connection with the consequences of the war in Ukraine and on the impact of the
introduced price regulation of petroleum products on the Company’s operations, which,
together with the reporting on the impact of the price regulation of other energy products, was
an important topic at the Supervisory Board meetings throughout the year.
An unscheduled meeting was held again in April to provide an update on the digitalisation
project and to report on the impact of the petroleum product price regulation on the business.

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In May, the Supervisory Board discussed the Report on the performance of the Petrol Group
and Petrol d.d., Ljubljana, in the first three months of 2022.
At extraordinary meetings held in June, July and August, the Supervisory Board was informed
about the impact of the regulation of petroleum product prices on the Petrol Group’s business
and on the implementation of the business plan and, as part of the measures to manage the
risks arising from the impact of the regulation of petroleum product prices, approved the
Company’s cash flow plan, taking into account the impact of the subsidiaries. In addition, at its
regular meeting in August, the Supervisory Board discussed the Report on the business
activities for the first half of 2022.
At four extraordinary meetings in September and October, the Supervisory Board discussed
the impact of the price regulation of energy products on the Petrol Group’s operations in
Slovenia and Croatia, took note of the report on the measures taken to secure the legal and
financial position of the Petrol Group in the light of the regulatory provisions in the field of
energy supply in both Slovenia and Croatia, and the preliminary results of the financial and
legal audit of the operations of Geoplin d.o.o. Ljubljana, which mainly related to the breach of
an agreement for the supply of natural gas by its business partner Gazprom, and, together
with the Management Board, sought appropriate solutions and scenarios to manage the
related negative effects on the business.
At its regular meeting in November, the Supervisory Board discussed the Report on the
business of the Petrol Group and Petrol d.d., Ljubljana in the first nine months of 2022, took
note of the measures to compensate for the damage caused by the regulation of energy
product prices and the measures to manage the business of Geoplin d.o.o. Ljubljana and
alternative sources of natural gas supply, and discussed the baselines for the preparation of
the Petrol Group’s annual business plan.
The main topic of the December meeting was the discussion of scenarios for the Petrol Group’s
2023 business plan. 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. It also took note of the Audit Committee’s
conclusions and carried out a self-assessment.
At the last extraordinary meeting in 2022, the Supervisory Board discussed the report to the
General Meeting on the damage caused by the regulation of the prices of energy products in
2022 and the compensation for the damage by the Republic of Slovenia and the Republic of
Croatia and its impact on the Company’s/Group’s operations and credit rating in 2022 and an
assessment of its impact on the Company’s/Group’s operations in 2023; the report to the
General Meeting on the business performance of the subsidiary Geoplin d.o.o. Ljubljana in
2022; and a report to the General Meeting on the impact of the regulated prices of petroleum
products, gas and electricity on the Company’s/Group’s operations in 2022 and an assessment
of the impact on the Company’s/Group’s operations in 2023.
All the decisions taken at regular and extraordinary meetings of the Supervisory Board
concerning the impact of price regulation on the operations of the Petrol Group companies
were taken unanimously.

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The Supervisory Board, acting within its powers, made responsible decisions and discussed a
number of other matters within its terms of reference:
adopting the 2023 Internal Audit work programme;
adopting the 2023 Audit Committee work programme;
managing potential 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);
giving consent to the Management Board in accordance with the Articles of Association
and other forms of approval for Management Board proposals;
discussing the Workers Council reports concerning the involvement of workers in
management;
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:
compliance with the rules and guidelines stipulated in its Rules of Procedure;
the ongoing training of all persons involved in the functioning of the body and the adoption
of new best practices related to corporate governance;
the transparent functioning of the Supervisory Board in relation to the Management Board
and vice versa, and with all external stakeholders;
a sufficient number of meetings to provide a thorough insight into the operations and
orientations of future development;
full attendance of all Supervisory Board members and the proactive functioning of each
Supervisory Board member;
training of members, acquaintance with new trends, acquaintance with key personnel,
learning about the structure of the Company, the Petrol Group and its processes;
self-assessment of the Supervisory Board with a view to the timely identification of the
necessary changes and implementation of the measures, and a number of other matters
that are the responsibility of the Supervisory Board in accordance with the law, the Statutes
and the Rules of Procedure.
Work of the Supervisory Board’s Committees
The Audit Committee of the Supervisory Board held 9 meetings in 2022 to discuss quarterly
reports on the operations of the Petrol Group and Petrol d.d., Ljubljana, and discussed
standard and other matters, such as:
progress of the preliminary audit of the 2021 annual report;
preparation of the 2023 Audit Committee work programme;
management of credit, foreign exchange and price risks;
risk management in the Petrol Group by quarter and its annual overview;
briefing on the Internal Audit reports and the 2023 Internal Audit work programme;
briefing on the report of authorised officers concerning the implementation of corporate
integrity guidelines;
discussing and proposing to the Supervisory Board for adoption guidelines governing the
performance of non-audit services by the statutory auditor;
briefing on and monitoring the expected changes in the International Financial Reporting
Standards on a regular basis and assessing the effect they may have had on the financial
statements;

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an annual interview with the Head of Internal Audit,
monitoring and communicating the results of the external audit of internal audit work,
discussing other topics falling within the competence of the Audit Committee.
The Committee also discussed the revised 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.
The Supervisory Board’s Human Resources and Management Board Evaluation
Committee held one meeting in 2022 to evaluate the work of the Management Board in 2021
and to make proposals to the Supervisory Board on the remuneration for its work in 2021. It
also reviewed and approved the Remuneration Policy for the Management Board and the
Supervisory Board, which was submitted to the General Meeting for adoption.
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 in the context of self-assessing its
performance deemed the work of both committees to have been very good.
Assessment of the Petrol Group’s Operations in 2022
On 19 January 2023, the Supervisory Board of Petrol d.d., Ljubljana took note of the Petrol
Group’s performance assessment for 2022. The Management Board prepared the
performance assessment due to anticipated deviations from the Petrol Group Business Plan
2022. The estimated deviations are due to the tight operating conditions in the context of the
ongoing energy crisis and the government’s measures to mitigate its impact. The information
contained in the publication “Preliminary Unaudited Performance Assessment of the Petrol
Group for 2022” is available on the website of Petrol d.d., Ljubljana.
At its 30
th
meeting of 16 March 2023, the Supervisory Board took note of and discussed the
unaudited results of the Petrol Group for 2022.
The Petrol Group’s sales revenue stood at EUR 9.5 billion in 2022, up 91 percent on the year
before. Adjusted gross profit stood at EUR 393.4 million, which was 28 percent less than in
2021. The EBITDA totalled EUR 96.3 million and was 60 percent lower than in 2021. The net
profit for 2022 totalled EUR -2.7 million, a decrease of EUR 127.2 million from 2021.
Approval of the 2022 Annual Report
At its 32
nd
meeting held on 13 April 2023, the Supervisory Board discussed the audited Annual
Report of the Petrol Group and Petrol d.d., Ljubljana for 2022. 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 2022.
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

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the Petrol Group and Petrol d.d., Ljubljana for 2022, concluding the actual state of corporate
governance in 2022.
Dr Janez Žlak
President of the Supervisory Board
Ljubljana, 13 April 2023
HIGHLIGHTS:
The composition of the Supervisory Board is diverse in terms of educational background,
work experience and personality traits, all of which allows for an effective professional
complementarity in the exchange of views and opinions.
The Supervisory Board kept stakeholders informed on a regular basis.
More than half of the meetings were devoted to energy product supply emergencies,
energy product price regulation and its impact on business.

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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 in 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
Respect: We respect fellow human beings and the environment.
Trust: We build partnerships through fairness.
Excellence: We want to be the best at all we do.
Creativity: We use our own ideas to make progress.
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 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
achieve it. While co-creating opportunities brought about by the energy transition, we will also
continue to supply the market with hydrocarbons.

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Petrol’s strategy sets clear goals for the realisation of our vision: “To become an integrated
partner in the energy transition with an excellent customer 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, the public sector and households, Petrol is taking a leading
role in achieving 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 the
energy product supply segment 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:
Slovenia, where we will consolidate our position as a leading energy company and partner
in the energy transition;
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; and
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
services) and mobility services (e.g. operating leasing, fleet electrification and fleet
management services).

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The strategic objectives for 2025 are as follows:
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);
EBITDA of EUR 336 million;
net debt/EBITDA less than 1;
net profit of EUR 180 million;
investments in fixed assets in the 2021-2025 period in the total amount of EUR 698
million, of which 35 percent in the energy transformation, and the rest mainly in the
expansion and upgrade of the retail network and the digitalisation of operations;
renewable electricity production output of 160 MW;
retail network with a total of 627 service stations;
1,575 charging points for electric vehicles;
energy savings of 73 GWh for end-customers in the 2021-2025 period.
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.
The turbulence in the energy markets, high inflation and the resulting regulatory intervention
by governments in the pricing of energy products have severely impacted the Petrol Group’s
business. The Petrol Group’s business model as a petroleum retailer does not allow it to cover
all costs given the purchase prices which enable refineries to make their profits during the
period of retail price regulation. The changed circumstances also required the Petrol Group to
adjust its capital expenditure as early as 2022. Energy transition projects continue to account
for the bulk of our investment funds. In the light of current developments in the energy markets,
the Petrol Group will revise its business plan for the next five-year period in early 2024, if
necessary.
6.3 Organisational Transformation
In accordance with the Petrol Group Strategy for 2021-2025, in June 2021 the Management
Board of Petrol adopted a new organisation of the Company and the Petrol Group, which was
updated in 2022 in the course of the process of incorporation of Crodux derivati dva d.o.o. into
Petrol d.o.o. on the Croatian market as of 1 October 2022.
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. With
clearly defined responsibilities, processes are more efficient, work procedures are unified and
more centralised, and thus specialisation is increased. By separating sales from products, we
strengthen the focus of sales on the customer, who is placed at the centre of our operations.

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An excellent user experience is ensured by product managers who are focused on ensuring
product profitability.
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 quality and productivity. In the management of subsidiaries,
we 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. In 2022, with the merger of
Crodux derivati dva d.o.o. into Petrol d.o.o., we introduced a functional organisation in the
Croatian market, which will be implemented by the end of the strategic period in other
subsidiaries in Slovenia and in companies in the markets of Bosnia and Herzegovina, Serbia
and Montenegro.
6.4 Petrol as the ambassador of corporate integrity
Petrol meets its targets while complying with the applicable regulations and the 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. 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.

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7. Plans for 2022
7.1 Business environment
The Petrol Group’s Business Plan for 2023 has been drawn up in a context of great uncertainty,
mainly related to the situation on the energy markets. Economic growth is slowing down. The
embargo on Russian crude oil and petroleum products is tightening supply conditions and
increasing the risk of a further deterioration in the economic outlook in countries that are
important trading partners of Slovenia. Inadequate regulation of the prices of petroleum
products and cost pressures due to high inflation in 2022 and expected inflation in 2023 require
adjustments to business models and cost optimisation. 2022 was characterised by extreme
price fluctuations for petroleum products and other energy products, as well as government
regulation. As one of the key drivers of the energy transition in the region, the Petrol Group
faces a shortage of funds for investments in the green transition, mainly due to the impact of
regulation.
7.2 Key trends and risks in the 2023 Business Plan
Based on economic forecasts, the Petrol Group plans to increase its sales of petroleum
products in 2023 compared to the 2022 plan. In the area of merchandise and services, the
Petrol Group will continue to ensure fast and convenient purchases for the consumer and an
excellent customer experience. In electricity and natural gas sales, Petrol will maintain its
market share in Slovenia. In 2023, the Petrol Group will increase the number of proprietary
and non-proprietary EV charging stations. It will actively promote energy independence,
efficiency and renewable energy in Slovenia and other Central European countries. The share
of green energy generation from successful renewable energy projects in the region will
increase. In the area of energy solutions, most activities will focus on the industrial and
household segments. We will continue to focus on cost-efficiency. Through process
optimisation and other measures, we aim to achieve a cost-to-adjusted gross profit ratio of 77
percent by 2023.
The Petrol Group recognises that despite careful preparation, informed business decisions,
quick responses to changes and an efficient risk-management system external factors may
arise in the business environment that are beyond our direct control. As a result, there is a risk
that annual targets may not be met. We have already seen this with the COVID-19 pandemic,
and even more so with the energy crisis in 2022.
The key risks to the achievement of the 2023 business plan are the negative impact of the
energy crisis on inflation and the resulting increase in the cost of living, and the management
of higher operating costs. Other risks to the 2023 plan include:
disruption to supply chains and the impact on the economy;
tightening of purchasing conditions for petroleum products;
further tightening of energy product retail price regulation;
impact of the Energy Savings Requirements Act in Slovenia and Croatia;
possible amendment of the Decree on the promotion of the use of biofuels and other
renewable fuels for the propulsion of motor vehicles;
uncertainty when selling into the highly volatile EU markets;
other regulatory requirements.

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7.3 Business targets for 2023
For 2023, the Petrol Group projects sales revenues of EUR 10.2 billion and an adjusted
gross profit of EUR 675.0 million. The Petrol Group will achieve its planned results for 2023
through the sale of 4.0 million tonnes of fuels and petroleum products, merchandise in the
amount of EUR 544.8 million, 14.5 TWh of natural gas, 12.9 TWh of electricity (trading and
sales to end customers), 154.6 thousand MWh of heat, the production of 188.4 thousand MWh
of electricity, and the sale of energy and environmental solutions.
For 2023, the Petrol Group projects EBITDA of EUR 250.4 million and a net debt/EBITDA
ratio of 1.7. The latest known energy product price regulations have been taken into account
in the preparation of the business plan. Regulation of petroleum product margins continues to
have a negative impact on the Petrol Group’s performance.
For 2023, the Petrol Group plans to generate a net profit of EUR 117.1 million.
The Group’s investment policy for 2023 will be focused on expanding the business in the
area of renewable electricity production, digitising the supply chain, modernising its points of
sale and expanding its operations in the area of energy and environmental solutions. Price
regulation remains in place in 2023, and investment volumes have been adjusted accordingly.
In 2023, investments will amount to EUR 75.0 million, one-third of which will be spent on
energy transition projects, while the 2023 Strategic Business Plan foresees investments of
EUR 135.0 million.
Before the onset of the energy crisis and the resulting price regulation, the Petrol Group was
in a very good business and financial shape. In 2022, the negative impact of energy price
regulation on the Group’s business resulted in a significantly weaker finish than planned. We
expect 2023 to be a challenging year, so we will focus a lot of attention on optimising business
processes and, as a result, optimising costs. We will meet the high performance standards
recognised by S&P Global Ratings. Despite the difficult business conditions, the Group will
continue to pursue its goal of ensuring stable operations, thus delivering a reasonable return
for shareholders.
HIGHLIGHTS:
The Petrol Group’s Business Plan 2023 has been drawn up in a context of uncertainty,
mainly related to the volatility of the energy markets and slowing economic growth.
In 2023, investments will focus on expanding the renewable electricity production business,
digitalising the supply chain, modernising the points of sale and expanding the energy
solutions business.
We will focus a lot of attention on optimising business processes and, as a result, optimising
costs.

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8. Corporate governance statement
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 2022 to 31 December 2022, the Company was bound by the
Slovenian Corporate Governance Code for Listed Companies (hereinafter 'the Code') as jointly
drawn up by the Ljubljana Stock Exchange and the Slovenian Directors’ Association on 27
October 2016 and updated and adopted on 9 December 2021. The Code entered into force in
its updated version on 1 January 2022. 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 has since been updated several times at meetings of the
Company’s Supervisory Board and published on SEOnet. 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. with both its guiding
principles and recommendations. Any deviations or partial deviations from the Code are listed
and explained below:
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 2023 (the Code: Corporate
governance statement, paragraph 5.6)
Sustainable development is one of the priorities of the Petrol Group. Due to its importance,
since 2012, the Petrol Group has been publishing bi-annual stand-alone Sustainability
Reports, which present in more detail the sustainability strategic orientations and
challenges, objectives, programmes and projects, as well as the results. Our activities are
complex and diversified; therefore, we are constantly formulating a methodology for
sustainable development, measurement, evaluation and reporting. The Petrol Sustainable
Business Policy is therefore not a single document, but rather a set of interlinked internal
documents that cover all the content listed in paragraph 7 of the Code (the Code:
Sustainable Business, paragraph 7).
The Supervisory Board sets out in the Rules of Procedure the content and types of
transactions for which the Supervisory Board’s consent is required, but does not specify
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 14.3).

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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).
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 32.1).
The Company has not published the applicable wording of the rules of procedure of its
bodies on its website. The Management Board and 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 the 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 Company’s internal control and risk
management systems in connection with the financial reporting process
The Company’s Management Board is responsible for the keeping of proper books of account,
setting up and ensuring the functioning of internal controls and internal accounting controls,
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:
the accuracy, reliability and completeness of financial records, and true and fair financial
reporting,
compliance with applicable laws and regulations; and
the effectiveness and efficiency of operations.
The Company’s Management Board 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 fraud. Nevertheless, it must be configured so that it flags them
as soon as possible and provides management with suitable assurance about the achievement
of objectives.
1
The three defence lines of control: (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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Petrol, therefore, keeps and further improves:
a transparent organisational structure of the parent company and the Group;
clear and uniform accounting policies and their consistent application across the Petrol
Group;
an efficiently organised accounting function (functional responsibility) within individual
companies and the Petrol Group;
a uniform accounting and business information system of the parent company and its
subsidiaries, thus boosting the efficiency of operational and control procedures;
reporting in accordance with the International Financial Reporting Standards, including all
disclosures and notes that are required;
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 2022, the current internal control system was efficient and provided an
appropriate environment for the achievement of the business objectives of Petrol d.d.,
Ljubljana and of the Petrol Group, as well as 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 only issued 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 2022

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The largest shareholders of Petrol d.d., Ljubljana, as at 31 December 2022
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 2022):
Clearstream Banking SA. - client account held 6,467,732 shares of the issuer Petrol d.d.,
Ljubljana, representing 15.50 percent of the share capital of the issuer;
Slovenian Sovereign Holding held 5,299,220 shares of Petrol d.d., Ljubljana, representing
12.70 percent of the issuer’s share capital;
The Republic of Slovenia held 4,513,980 shares of Petrol d.d., Ljubljana, representing
10.82 percent of the issuer’s share capital;
Kapitalska družba, d.d. held 3,452,780 shares of Petrol d.d., Ljubljana, representing 8.27
percent of the issuer’s share capital; and
OTP Banka d.d. Client account held 2,849,061 shares of the issuer Petrol d.d.,
Ljubljana, representing 6.83 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
the appointment and replacement of members of the 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 %
1. CLEARSTREAM BANKING SA - FIDUCIARNI RU 42 Avenue J. F. Kennedy, L-1855, Luxemburg 6,467,732 15.50%
2. SDH, D.D.
Mala ulica 5, 1000 Ljubljana 5,299,220 12.70%
3. REPUBLIKA SLOVENIJA Gregorčeva ulica 20, 1000 Ljubljana 4,513,980 10.82%
4. KAPITALSKA DRUŽBA, D.D.
Dunajska cesta 119, 1000 Ljubljana 3,452,780 8.27%
5. OTP BANKA D.D. - CLIENT ACCOUNT - FIDUCI Domovinskog rata 61, 21000 Split, Croatia 2,849,061 6.83%
6. ERSTE GROUP BANK AG - PBZ CROATIA OSIGUR
Am Belvedere 1100 Wien, Austria 1,667,370 4.00%
7. VIZIJA HOLDING, D.O.O.
Dunajska cesta 156, 1000 Ljubljana 1,482,780 3.55%
8. VIZIJA HOLDING ENA, D.O.O.
Dunajska cesta 156, 1000 Ljubljana 1,350,700 3.24%
9. PERSPEKTIVA FT D.O.O. Dunajska cesta 156, 1000 Ljubljana 725,240 1.74%
10. PETROL D.D., LJUBLJANA
Dunajska cesta 50, 1000 Ljubljana 494,060 1.18%

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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 the agreements
concluded with Management Board members. The Supervisory Board also determines the
weight of the 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 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 the 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. The shortlisted candidate/s for President of the Management Board propose
other members of the Management Board; the Human Resources and Board Evaluation
Committee verifies the conditions and references of the proposed candidates. The
Committee thereupon proceeds with the evaluation of the entire Management Board and
negotiates with candidates on the basic elements of their agreements. The candidate/s for
President of the Management Board, together with the proposed members of the
Management Board, present the vision of the Company’s development at the 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 no 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, at its own discretion. The Supervisory Board is required to
immediately notify the Management Board if it is 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 no 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.

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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 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.
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 Diversity Policy, 13 December 2018).
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 to 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 and 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:
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 Supervisory Board as a whole;
knowledge of the industry and the characteristics of the legal and regulatory
environment; and
an 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:
to ensure at least 30 percent representation of the underrepresented gender among
the shareholder representatives on the Supervisory Board by 2022.
efforts by all stakeholders in the HR processes to appoint the Management Board
members in such a way as to achieve the greatest possible gender balance by creating
an appropriate set of candidates that ensures the appropriate representation of the
underrepresented gender.
seeking not to change the overall membership 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

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the Supervisory Board. It is used mainly in activities such as the pooling, selection and
proposal of candidates 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, the 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. The Management
Board comprises a president and four male members of the Management Board. The
Supervisory Board comprises one female member and eight male members. In the energy
sector, women’s representation in management positions is found to be low. In 2019, the
Supervisory Board joined the initiative to achieve voluntary 40/33 gender diversity by 2026
as proposed by the Slovenian Directors’ Association. Among other partners, the initiative
was supported by the Slovenian Sovereign Holding and the Ljubljana Stock Exchange. In
2022, a female representative was appointed as an external member of the Audit
Committee.
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.
8.3.9 The powers of the Management Board members, particularly in connection with
own shares
At its 34
th
General Meeting, held on 21 April 2022, the General Meeting by a resolution under
item 7, authorised the Management Board to purchase treasury shares for a period of 12
months from the date of the entry into force of the resolution. Under this authorisation, a
maximum number of own shares may be acquired so that the total percentage of the shares
acquired based on this authorisation does not exceed, together with other own shares already
held by the Company, two percent of the Company’s share capital. The Company may acquire
its own shares through transactions entered into on a regulated securities market, at the then
prevailing market price. The Company may also acquire its own shares outside a regulated
securities market. When acquiring shares on a regulated or unregulated securities market, the
purchase price of the shares may not be less than 50 percent of the book value of the share,
calculated on the basis of the Petrol Group’s latest publicly published audited annual accounts.
The purchase price of the shares may also not exceed 11 times the earnings per share (EPS)
calculated on the basis of the Petrol Group’s latest publicly published audited annual accounts.
Pursuant to Article 381(3) and (4) of the Companies Act (ZGD-1), the Company may reduce
the share capital (once or successively) by withdrawing own shares acquired pursuant to this
authorisation (but not own shares acquired earlier) in a simplified procedure and against other
profit reserves with the consent of the Supervisory Board. The Company may only use its own
shares acquired pursuant to this authorisation in accordance with this resolution.
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 any such agreements.

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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
No early termination benefits are payable to a member of the Management Board in the cases
provided for in the Companies Act. No severance payment is due to a member of the
Management Board in the event of the regular termination of their term of office. Furthermore,
a member of the Management Board is not entitled to severance pay if they terminate the
employment agreement or if the employment contract is terminated early on the grounds of
serious misconduct, incapacity or a vote of no confidence by the General Meeting (unless the
vote of no confidence was passed for manifestly unfounded reasons).
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 the 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 2022.
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 the 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 behind the agenda item. Notwithstanding, a 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 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.
At the 34
th
General Meeting held on 21 April 2022 (notice of the resolutions of the General
Meeting is available at 34
th
Annual 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 2021 financial year, as well as with the report on the remuneration of the
members of the management and supervisory bodies. They discussed and adopted a
resolution on the allocation of the accumulated profit and the granting of a discharge from
liability to the Management Board and Supervisory Board for the year 2021. The General
Meeting considered the Remuneration Policy of the Management and Supervisory Bodies of

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Petrol d.d., Ljubljana, which has not yet been approved. Pursuant to Article 294a(3) of the
ZGD-1, the vote of the shareholders at the General Meeting on the Remuneration Policy is
advisory and will be resubmitted for vote and approval at the next General Meeting.
At the 35
th
Annual General Meeting held on 27 December 2022 (notice of the resolutions of
the General Meeting is available at 35
th
Annual General Meeting), the shareholders were
presented with the report of the Supervisory Board and the Management Board on the damage
caused by the regulation of energy product prices in 2022 and the reimbursement of damages
by the Republic of Slovenia and the Republic of Croatia and its impact on the
Company’s/Group’s operations and credit rating in 2022, as well as with an assessment of the
impact of the regulation on the Company’s/Group’s operations in 2023. The shareholders were
also presented with the report of the Supervisory Board and the Management Board of the
Company on the operations of the subsidiary Geoplin d.o.o. Ljubljana in 2022 and with the
report of the Supervisory Board and the Management Board of the Company on the impact of
the regulation of the prices of petroleum products, gas and electricity on the
Company’s/Group’s operations in 2022 and an assessment of the impact of the regulation of
the prices of petroleum products, gas and electricity on the Company’s/Group’s operations in
2023.
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 28 August 2020, the Management Board functions
with five members. The Management Board discussed matters falling within its competence at
90 meetings in 2022. Virtually 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 with it in connection with the Company’s strategy,
business development and risk management. Some of the Management Board’s activities
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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 only
represent the Company together with the president of the Management Board. The Company’s
Management Board is required to seek the consent of the Supervisory Board for the conclusion
of the following transactions:
transactions on the basis of which the Company acquires or disposes of its own shares;
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;
transactions on the basis of which the Company establishes or terminates any company
and/or business unit;
transactions on the basis of which the Company borrows or approves loans 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 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;
individual purchases or sales of the non-current intangible or tangible fixed assets and
investment property of the Company, for amounts exceeding EUR 5,000,000.00. For the
avoidance of doubt, a set of several interconnected transactions shall also be considered
a single transaction, in particular insofar as they represent a single investment or are part
of a single investment programme;
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;
granting a power of procuration;
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 2022 there were no changes in the composition of the Management Board of Petrol d.d.,
Ljubljana.

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Members of the Management Board of Petrol d.d., Ljubljana in 2022:
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:
procurement of and trade in 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
technical development, quality and safety
legal affairs
corporate security and control of operations, and
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:
finances
accounting
back office
informatics
controlling
management of development needs and projects
risk management
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:
energy and solutions
logistics
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:
sales to end-customers (B2C)
sales to business customers and the public sector (B2B and B2C)

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digital channels
marketing and user experience management
fuels and petroleum products
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.
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 agreement
with the auditor of the annual report and the consolidated annual report and in relation to the
members of the Supervisory Board.
The Members of the Supervisory Board of Petrol d.d., Ljubljana were as follows in 2022:
Janez Žlak, President of the Supervisory Board, shareholder representative
Project Manager at HSE, d.o.o., Ljubljana. 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 since the constituent meeting of 22 April 2021.
Borut Vrviščar, Deputy President of the Supervisory Board, shareholder representative
General Manager of Kuehne+Nagel, AG, Schindellegi, CH. He was appointed for a four-year
term of office as a Member of the Supervisory Board beginning on 11 April 2021 at the 32
nd
General Meeting of 28 December 2020. He has been serving as Deputy President of the
Supervisory Board since the constituent meeting of 22 April 2021.
Mladen Kaliterna, Member of the Supervisory Board, shareholder representative
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. From 11 April to 21 April 2021, he served as the President of the Supervisory Board.
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.

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Alenka Urnaut, Member of the Supervisory Board, shareholder representative
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, Member of the Supervisory Board, shareholder representative
Representative of J&T Bank, a.s. He 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, Member of the Supervisory Board, shareholder representative
He was appointed for a four-year term of office beginning on 11 April 2021 at the 32
nd
General
Meeting of 28 December 2020.
Alen Mihelčič, Member of the Supervisory Board, employee representative
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, Member of the Supervisory Board, employee representative
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, Member of the Supervisory Board, employee representative
Petrol d.d., Ljubljana, assistant for health and safety at work and fire safety: When Member of
the Supervisory Board Zoran Gračner resigned, Mr Šavli was appointed as a 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 2022:
Until 21 October 2022:
Alenka Urnaut, President of the Committee
Mladen Kaliterna, Member of the Committee
Aleksander Zupančič, Member of the Committee
Robert Ravnikar, Member of the Committee
Janez Pušnik, External Member of the Committee
From 22 October 2022 onwards:
Alenka Urnaut, President of the Committee
Mladen Kaliterna, Member of the Committee
Aleksander Zupančič, Member of the Committee
Robert Ravnikar, Member of the Committee

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Sabina Merhar, External Member of the Committee
The Human Resources and Management Board Evaluation Committee was composed
of the following members in 2022:
Borut Vrviščar, President of the Committee
Janez Žlak, Member of the Committee
Mário Selecký, Member of the Committee
Alen Mihelčič, Member of the Committee
Marko Šavli, Member of the Committee
Remuneration policy for members of the 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 was
submitted to the General Meeting for approval at the Company’s 34
th
General Meeting. The
nominal amounts received in the 2022 financial year by each Management Board member and
each Supervisory Board member are indicated in the financial part of this report (chapter 8
Related party transactions) and in more detail in the Report on the Remuneration of the
Management and Supervisory Bodies of Petrol d.d., Ljubljana in the 2022 financial year, 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. 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:
The 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.
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 the remuneration is the basic salary of a member of the
Management Board, determined by the employment agreement 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

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assets and generated net sales revenue) and the complexity of operations (organisation,
internationalisation, requirements of the direct economic environment, complexity of key
products, regulation of activities).
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 the 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 using 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.
Members of the Management Board are also entitled to certain other remuneration:
- premiums for life, accident and 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 agreement;
- under the same conditions and in the amount that applies to employees of the
Company, to pay for holiday leave, compensation for holiday leave, jubilee awards, the
reimbursement of travel expenses, and the reimbursement of expenses for meals
during work;
- non-competition clause: within the provisions of the Act governing employment
relationships and under the conditions set out in the employment agreement;
- some other benefits appropriate to the position of a member of the Management Board
for the smooth performance of the function;
A member of the Management Board is also entitled to severance pay under the conditions
determined by law, the remuneration policy and the employment agreement.
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. Pursuant to Article 294a(3) of the ZGD-1, the Remuneration Policy will be resubmitted
to the General Meeting for approval at its next meeting.

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APPENDIX C: Composition and remuneration of the Management Board and
Supervisory Board
C.1: Composition of the Management Board in the 2022 financial year
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 the
supervisory
bodies of
non-related
companies
Nada
Drobne
Popović
President of
the
Management
Board
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;
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
near Kranj
All-round
management
competencies,
including
management
of equity
investments
/
Matija
Bitenc
Member of
the
Management
Board
Finances;
Accounting ; Back
office; Informatics;
Controlling;
Management of
development needs
and project; Risk
management;
Business
intelligence
11 March
2020
10 March
2025
Male Slovene 1980
Master of
Economics
Competencies
in the area of
corporate
finance, risk
management,
business
intelligence
and
information
technology
/
Jože
Bajuk
Member of
the
Management
Board
Energy and
solutions; Logistics;
Operational
Management
11 March
2020
10 March
2025
Male Slovene 1974
Master of
Sociology,
Bachelor of
Law
Competencies
in the area of
law, corporate
governance,
energy
(especially
renewables),
electricity
trading and
ESCO projects
/
Jože
Smolič
Member of
the
Management
Board
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 petroleum
products
28 August
2020
27 August
2025
Male Slovene 1967
Master of
Entrepreneurial
Management
Competencies
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
Competencies
in the area of
energy
/

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C.2: Composition of the Supervisory Board and committees in the 2022 financial year,
part 1
Name and
Surname
Function
(president,
deputy,
member of
the
Supervisory
Board)
First
appointment to
the office
Termination of
office/
mandate
Shareholder/
employee
representative
Attendance at
Supervisory Board
meetings
according to the
total number of
meetings
Gender Nationality
Year of
birth
Janez Žlak
President of
the
Supervisory
Board in 2022
22 April 2021 21 April 2025
Shareholder
representative
All 17 meetings of
the Supervisory
Board in 2022
Male Slovene 1965
Borut Vrviščar
Deputy
President of
the
Supervisory
Board in 2022
28 December
2020
10 April 2025
Shareholder
representative
15 out of 17
meetings of the
Supervisory Board in
2022
Male Slovene 1969
Aleksander
Zupančič
Member of
the
Supervisory
Board in 2022
28 December
2020
10 April 2025
Shareholder
representative
All 17 meetings of
the Supervisory
Board in 2022
Male Slovene 1979
Mladen Kaliterna
Member of
the
Supervisory
Board in 2022
4 April 2013 15 July 2025
Shareholder
representative
All 17 meetings of
the Supervisory
Board in 2022
Male Slovene 1967
Alenka Urnaut
Member of
the
Supervisory
Board in 2022
28 December
2020
10 April 2025
Shareholder
representative
16 out of 17
meetings of the
Supervisory Board in
2022
Female Slovene 1975
Mário Selecký
Member of
the
Supervisory
Board in 2022
28 December
2020
10 April 2025
Shareholder
representative
14 out of 17
meetings of the
Supervisory Board in
2022
Male Slovak 1975
Alen Mihelčič
Member of
the
Supervisory
Board in 2022
27 January 2017 22 February
2025
Employee
representative
All 17 meetings of
the Supervisory
Board in 2022
Male Slovene 1975
Robert Ravnikar
Member of
the
Supervisory
Board in 2022
27 January 2017 22 February
2025
Employee
representative
All 17 meetings of
the Supervisory
Board in 2022
Male Slovene 1979
Marko Šavli
Member of
the
Supervisory
Board in 2022
11 December
2020
22 February
2025
Employee
representative
All 17 meetings of
the Supervisory
Board in 2022
Male Slovene 1973

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C.2: Composition of the Supervisory Board and committees in the 2022 financial year,
part 2
Name and
Surname
Education
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 the
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
Janez Žlak PhD
General
management
and leadership,
government
investment
management
YES NO /
Human
Resources and
Management
Board
Evaluation
Committee
Member of the
committee in 2022
1 out of 1
meeting in
2022
Borut Vrviščar
Bachelor of
Electronics
Engineering,
Leadership
and strategic
management,
Top
management
Logistics,
organisation
and
management
YES NO /
Human
Resources and
Management
Board
Evaluation
Committee
President of the
committee in 2022
1 out of 1
meeting in
2022
Aleksander
Zupančič
Bachelor of
Law
Organisation
and
management,
law,
psychotherapy
and coaching
YES NO / Audit Committee
Member of the
committee in 2022
All 9 meetings
in 2022
Mladen Kaliterna
Master of
Management
and
Organisation
Investment and
management of
Group
companies
YES NO / Audit Committee
Member of the
committee in 2022
All 9 meetings
in 2022
Alenka Urnaut
MBA,
University
graduate in
economic
engineering
Real estate
appraisal
YES NO / Audit Committee
President of the
committee in 2022
All 9 meetings
in 2022
Mário Selecký Master of
Law
Banking,
organisation
and
management
YES NO /
Human
Resources and
Management
Board
Evaluation
Committee
Member of the
committee in 2022
1 out of 1
meeting in
2022
Alen Mihelčič Economist
Commercial
operations
YES NO /
Human
Resources and
Management
Board
Evaluation
Committee
Member of the
committee in 2022
1 out of 1
meeting in
2022
Robert Ravnikar
Bachelor of
Economics
Sales YES NO / Audit Committee
Member of the
committee in 2022
All 9 meetings
in 2022
Marko Šavli
Utility
Engineer
Safety,
compliance
YES NO /
Human
Resources and
Management
Board
Evaluation
Committee
Member of the
committee in 2022
1 out of 1
meeting in
2022

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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 Popov
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, 6 April 2023
Name and
Surname
Committee
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
7 out of 9 meetings in
2022
Male Slovene
Master of
Business
Administration
1970
Court expert witness for
economics, specifically
business valuation and
accounting, certified
appraiser
/
Sabina
Merhar
Audit Committee
2 out of 9 meetings in
2022
Female
Slovene
Master of
Entrepreneurial
Management
1975
Competencies in
financial and
accounting
management, auditing
/

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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. The activities of the Group companies are dominated by the sale
of fuels, derivatives, merchandise and services. Petrol’s core development activity is the
development and upgrading of energy solutions and the generation of electricity from
renewable energy sources (see Business by product group for more information on sales of
individual products). The operations of the parent company and some of its subsidiaries
encompass multiple areas, from sales of fuels and petroleum products, merchandise and
services to the sale of energy and solutions, 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 more in The Petrol Group in its
region).
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 2020 that was prepared in accordance with GRI (Global Reporting
Initiative) standards. The new Sustainability Report 2022 is expected to be published in June
2023.
The situation in the area of transport and the resulting sales of petroleum products and other
energy products together with the overall economic situation in the energy markets where the
Group operates are the main factors affecting its operations. The Petrol Group’s operations in
2022 took place in the highly complex environment of a persistent energy crisis at the EU level
and state interventions to mitigate its impact on both the population and economic operators.
High energy prices and rising inflation have led to the government regulation of fuel, electricity
and natural gas prices in the markets where the Group operates (in Slovenia alone, at least 37
regulatory acts were adopted in 2022), which has had a significant impact on the Group’s
operations. Petrol d.d., Ljubljana, has transparently informed the public about the impact of the
energy crisis and the regulation of energy prices on the Group’s operations on the Ljubljana
Stock Exchange’s SEOnet website and on its own website (available at 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.

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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 the Petrol Group.
Petrol’s environmental management system complies with the requirements of the
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 for
ensuring 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 holds valid environmental permits for all establishments
operating under the SEVESO Directive and for installations operating under the Industrial
Emissions Directive (IED). It also consistently implements all the provisions defined in the
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. We have set ourselves the goal of using natural resources efficiently
and switching to renewable energy sources. Petrol d.d., Ljubljana 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.

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Due to the strategic importance of products related to oil and merchandise sales and being
aware of their vulnerability, ensuring the safety, security and continuity of business is one of
the key principles of the Petrol Group’s business. This principle is implemented by 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.
The framework safety and security policy includes the following areas:
Occupational safety and health
Fire safety
Physical and technical protection of people and property
Environmental protection
Safe handling of chemicals and safety while transporting hazardous goods by road, rail or
sea
Protection of classified information and trade secrets
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. For each process, an annual activity
report is drawn up, including environmental content (monitoring results, inspection results, the
execution of environmental projects, and 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 quality and environmental management
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 sub-policies/systems (e.g. the safety and
security management system under the SEVESO Directive, which applies to all SEVESO
establishments managed by the Petrol Group).
The preparation of a strategy for the management of environmental and climate risks with
integration into the Petrol Group’s integrated risk management is underway, in line with the
latest TCFD (Climate-related Financial Disclosures) guidelines. 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:
we constantly study our possibilities and outline further strategic directions for
sustainable business;

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we set environmentally measurable goals and indicators (strategic and sectoral) and
establish comprehensive energy and environmental accounting (CEOK); and
we are currently studying our possibilities and determining further strategic directions for
sustainable business.
We are designing a new model for climate change risk management in the Petrol Group. The
model will enable an understanding of vulnerability to current and future climate change,
identifying, assessing and monitoring business risks and opportunities, and taking action to
manage these risks and exploit opportunities. Climate change risks will subsequently be
integrated into the overall risk management system of the Petrol Group.
The time of energy price increases has significantly increased the risk in the supply of energy
products and energy for own use. In this area, we have implemented a number of timely and
systematic measures to manage energy and energy product prices and to save energy and
energy products. Special attention has also been paid to developing measures for the reliable
supply of critical infrastructure with energy and energy products for own use.
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.
The above is provided:
through compliance with the applicable legislation relating to safety, the environment,
security, protection and rescue;
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;
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;
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;
through instructions, procedures and practices applicable to third-party access to
establishments;
through instructions, procedures and practices applicable to hazardous works at the
establishments;
by managing the operation from the point of view of controls, monitoring and audits;
by defining and evaluating the risk of major disasters and measures to mitigate
their consequences;
by managing changes from a technical, safety and security point of view;
by managing incidents, including the examination of events and action
plans to prevent recurrence (i.e. LFI learning from incidents);
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;

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through operations compliant with the ISO 9001:2015 standard (quality management), the
14001:2015 standard (environmental management) and the occupational health and safety
standards;
by ensuring safe and quality 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 chemical
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
Petrol 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.
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; a new report for 2022 is expected to be published in
June 2023). 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.
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.
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.
Because our sustainability performance conforms 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,

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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.
The monitoring of wastewaters, air emissions, noise sources, leak detection in reservoirs
and fuel quality is carried out on a regular basis.
We also monitor the treatment of biodegradable waste and carry out waste assessments.
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.
Petrol d.d., Ljubljana operates the SI-64 device which requires having a greenhouse gas
emissions permit. As an operator, we are obliged to annually surrender the number of
allowances corresponding to the total volume of greenhouse gases emitted into the
atmosphere by the device. This is described in detail in the Sustainability Report.
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).
9.2.2 Social and human resource 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 the 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

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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
Care for the health of employees
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.
Employees are united in the Trade Union of the Petrol Group and the Service Station Workers’
Union. Employees in subsidiaries are also members of other trade unions.
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 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.

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Work organisation during the pandemic and employee support programme
The year 2022 was still affected by 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.
Until March 2022, many employees continued to work from home, which has had an impact
on work processes, management and communication across organisational units.
As of December 2020, employees of Petrol d.d., Ljubljana and 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
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, and we continued this support in 2022.
Main risks and risk management
No major risks are identified in terms of Petrol Group’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
measurement of the quality of internal services and, in 2022, the measurement of
organisational culture. 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.
We have introduced two management training programmes, Strategy in Action, which supports
the Company’s strategic initiatives and the professional development of managers, and a skills
workshop programme for operational managers.

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In 2022, with the merger of Crodux derivati dva d.o.o. into Petrol d.o.o., we introduced a
functional organisation in the Croatian market, which will be implemented by the end of the
strategic period in other subsidiaries in Slovenia and in companies in the markets of Bosnia
and Herzegovina, Serbia and Montenegro. In this context, we are pursuing our strategy of
building a common organisational culture and cooperation within the Petrol Group through
various measures.
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, the 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 concerning 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 drawn up
actions for the containment of fraud. 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. Risks related to 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
To improve the health and safety of all employees, we ensure that all workplaces have
adequate protective equipment and preventive measures in place.
The risk assessment remains 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.eu, as we want to raise awareness that the
health and safety of our customers are of utmost importance to us.
Key performance indicators
At Petrol, we measure progress, build relationships, ensure proper communication and provide
for the management of employees in Slovenia through measuring the organisational climate
and employee satisfaction and commitment on a regular basis. We recognise our own
strengths and areas where there is room for improvement.

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In recent years, we have improved existing and introduced additional management and
development systems, which helped us 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 our 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 forty-two 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. The added value per employee in the Petrol Group is
presented in the chapter Business highlights of 2022 (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 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;
integriteta@petrol.si, via the website Report Irregularities or the 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

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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 and with
executive and other staff in various 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 involving a suspected criminal offence, the Company reacts in accordance with
the legislative possibilities regarding the reporting of irregularities and compensation for
damage.
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

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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
All activities included in the annual plan, which was confirmed by the Management Board, were
performed. In addition to the planned activities, business reviews and investigations were
carried out following reports of suspected operational irregularities and on the basis of
previously obtained analytical data. All of these cases were conducted in accordance with the
procedures set out by the rules on exercising control of operations and leading investigations
at the Petrol Group. In-depth business reviews were carried out in accordance with the plan.
Such reviews are primarily useful for managers of individual business processes, helping them
to regulate operations in accordance with the internal acts and applicable legislation, and at
the same time influencing the quality of operations and elevating participants’ integrity. All
findings were duly addressed
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 or taxonomy-aligned
economic activities for the 2022 financial year. Reporting for the 2022 financial year covers the
currently defined environmental objectives of climate change mitigation and adaptation for the
Petrol Group in Slovenia and Croatia.
For 2021, the controlling company Petrol d.d., Ljubljana was included in the reporting under
the Taxonomy Regulation. In line with the first reporting obligations in 2021, taxonomy-eligible
activities have been covered. Activities have been reported aggregated by NACE macro
sectors (the classification of economic activities).
For 2022, in addition to eligibility, reporting also includes an assessment of the alignment of
the activities with the EU taxonomy. In addition to Petrol d.d., Ljubljana, the analysis for 2022
includes direct subsidiaries in Slovenia and Croatia that are also included in the Petrol Group’s
consolidated financial statements and that also reported operating activity (sales revenues or
capital expenditure (CapEx)) in 2022. In Slovenia, these are Petrol Skladiščenje d.o.o., Petrol
GEO d.o.o., Ekoen d.o.o., Ekoen S d.o.o., Mbills d.o.o., Geoplin d.o.o. Ljubljana, Atet d.o.o.,
E 3, d.o.o., and in Croatia Petrol d.o.o., Vjetroelektrane Glunča d.o.o, Vjetroelektrana Ljubač
d.o.o and Zagorski metalac d.o.o. The group data is aggregated at the level of the individual
taxonomy-defined activities.
The following taxonomy-eligible activities of the Petrol Group in Slovenia and Croatia have
been identified within the five NACE macro sectors:
Energy
4.1 Electricity generation using solar photovoltaic technology

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4.3 Electricity generation from wind power
4.8 Electricity generation from bioenergy
4.9 Transmission and distribution of electricity
4.14 Transmission and distribution networks for renewable and low-carbon gases
4.15 District heating/cooling distribution
4.16 Installation and operation of electric heat pumps
4.20 Cogeneration of heat/cool and power from bioenergy
4.24 Production of heat/cool from bioenergy
4.30 High-efficiency co-generation of heat/cool and power from gaseous
fossil fuels
4.31 Production of heat/cool from gaseous fossil fuels in an efficient district
heating and cooling system
Water supply, sewerage, waste management and remediation
5.1 Construction, extension and operation of water collection, treatment and supply systems
5.2 Renewal of water collection, treatment and supply systems
5.3 Construction, extension and operation of wastewater collection and treatment
Transport
6.5 Transport by motorbikes, passenger cars and light commercial vehicles
6.15 Infrastructure enabling low-carbon road transport and public transport
Construction and real estate activities
7.3 Installation, maintenance and repair of energy efficiency equipment
7.6 Installation, maintenance and repair of renewable energy technologies
Information and communication
8.2 Data-driven solutions for GHG emissions reductions
All taxonomy-eligible activities are included in the climate change mitigation objective and are
also aligned with the taxonomy (environmentally sustainable economic activities) after a review
of the technical criteria.
The indicators are calculated in accordance with the definitions in the annex to Regulation
2020/852 Key performance indicators for non-financial undertakings. Data at the company
level is extracted from the financial statements, while data by activity is extracted from the
information system.

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Proportion of sales turnover from products or services associated with taxonomy-
aligned economic activities disclosure covering the Petrol Group (Slovenia and
Croatia), year 2022, part 1
* The companies included in the analysis: Petrol d.d., Ljubljana, Petrol Skladiščenje d.o.o., Petrol GEO d.o.o.,
Ekoen d.o.o., Ekoen S d.o.o., Mbills d.o.o., Geoplin d.o.o. Ljubljana, Atet d.o.o., E 3, d.o.o., Petrol d.o.o.,
Vjetroelektrane Glunča d.o.o, Vjetroelektrana Ljubač d.o.o., and Zagorski metalac d.o.o.
Economic activities Codes
Absolute
turnover in
EUR
Taxonomy-
aligned
proportion of
turnover, year
2022 (%)
Category enabling (E)
or transitional (T)
activity
A.) TAXONOMY - ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.3 Installation, maintenance and repair of energy efficiency equipment F43, M71, S95.22, C33.12 26,088,879 0.28 31.30 E
4.14 Transmission and distribution networks for renewable and low-carbon gases D35.22, F42.21, H49.50 12,833,989 0.14 15.40
4.15 District heating/cooling distribution D35.30 9,895,761 0.11 11.87
4.3 Electricity generation from wind power D35.11, F42.22 8,906,436 0.10 10.68
4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel D35.11, D35.30 7,358,141 0.08 8.83 T
4.9 Transmission and distribution of electricity D35.12, D35.13 3,141,003 0.03 3.77 E
5.3 Construction, extension and operation of waste water collection and treatment E37.00, F42.99 2,363,709 0.03 2.84
5.1 Construction, extension and operation of water collection, treatment and supply
systems
E36.00, F42.99
2,312,603 0.03 2.77
4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating
and cooling system
D35.30
1,934,328 0.02 2.32 T
5.2 Renewal of water collection, treatment and supply systems E36.00, F42.99 1,851,408 0.02 2.22
4.20 Cogeneration of heat/cool and power from bioenergy D35.11, D35.30 1,660,685 0.02 1.99
8.2. Data-driven solutions for GHG emissions reductions J61, J62, J63.11 1,453,842 0.02 1.74 E
4.24 Production of heat/cool from bioenergy D35.30 1,145,658 0.01 1.37
4.1 Electricity generation using solar photovoltaic technology D35.11, F42.22 1,125,537 0.01 1.35
6.15 Infrastructure enabling low-carbon road transport and public transport F42.11, F71.1 736,244 0.01 0.88 E
6.5 Transport by motorbikes, passenger cars and light commercial vehicles H49.39, N77.11 524,815 0.01 0.63 T
4.16 Installation and operation of electric heat pumps F35.30, F43.22 12,763 0.00 0.02
4.8 Electricity generation from bioenergy D35.11 10,064 0.00 0.01
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) / 83,355,863 0.90 100.00
A.2 Taxonomy-Eligible but not environmentally sustainable actvities (not
Taxonomy-aligned activities)
Turnover of Taxonomy-Eligible but not environmentally sustainable actvities (not
Taxonomy-aligned activities) (A.2)
/
0 0.00
Total (A.1 + A.2) / 83,355,863 0.90 100.00
B.) TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B) /
9,127,733,363 99.10
Total (A + B)* /
9,211,089,226 100
Proportion of
sales turnover
in consolidated
sales turnover
of the
companies
included in the
analysis*, in %

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aligned economic activities disclosure covering the Petrol Group (Slovenia and
Croatia), year 2022, part 2
Taxonomy-aligned activities contributed 0.90 percent of the Petrol Group’s sales turnover from
products or services or sales turnover in Slovenia and Croatia in 2022 (EUR 83,355,863 out
of a total sales turnover of EUR 9,211,089,226).
Out of a total of 18 different taxonomy-aligned activities, the top six contributed 81.85 percent
of the total taxonomy-aligned sales turnover:
31.30 percent was accounted for by activity 7.3 Installation, maintenance and repair of
energy efficiency equipment (mainly energy-efficient building renovation projects);
15.40 percent by activity 4.14 Transmission and distribution networks for renewable and
low-carbon gases (concessions and distribution of natural gas);
11.87 percent by activity 4.15 District heating/cooling distribution;
10.68 percent by activity 4.3 Electricity generation from wind power;
8.83 percent by activity 4.30 High-efficiency co-generation of heat/cool and power from
gaseous fossil fuels; and
3.77 percent by activity 4.9 Transmission and distribution of electricity.
The taxonomy-aligned proportion of sales turnover from enabling activities was 37.69 percent.
Economic activities
Substantital
contribution
criteria
Climate change
mitigation (%)
Minimum
safeguards
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy
Pollution
Biodiversity and
ecosystems
A.) TAXONOMY - ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.3 Installation, maintenance and repair of energy efficiency equipment 100% YES YES - - YES - YES
4.14 Transmission and distribution networks for renewable and low-carbon gases 100% YES YES YES - YES YES YES
4.15 District heating/cooling distribution 100% YES YES YES - YES YES YES
4.3 Electricity generation from wind power 100% YES YES YES YES - YES YES
4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel 100% YES YES YES - YES YES YES
4.9 Transmission and distribution of electricity 100% YES YES - YES YES YES YES
5.3 Construction, extension and operation of waste water collection and treatment 100% YES YES YES - YES YES YES
5.1 Construction, extension and operation of water collection, treatment and supply
systems
100% YES YES YES - - YES YES
4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating
and cooling system
100% YES YES YES - YES YES YES
5.2 Renewal of water collection, treatment and supply systems 100% YES YES YES - - YES YES
4.20 Cogeneration of heat/cool and power from bioenergy 100% YES YES YES - YES YES YES
8.2. Data-driven solutions for GHG emissions reductions 100% YES YES - YES - - YES
4.24 Production of heat/cool from bioenergy 100% YES YES YES - YES YES YES
4.1 Electricity generation using solar photovoltaic technology 100% YES YES - YES - YES YES
6.15 Infrastructure enabling low-carbon road transport and public transport 100% YES YES YES YES YES YES YES
6.5 Transport by motorbikes, passenger cars and light commercial vehicles 100% YES YES - YES YES - YES
4.16 Installation and operation of electric heat pumps 100% YES YES YES YES YES - YES
4.8 Electricity generation from bioenergy 100% YES YES YES - YES YES YES
DNSH criteria ("Does Not Significantly Harm")

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Proportion of sales turnover from products or services associated with taxonomy-
aligned economic activities disclosure covering Petrol d.d., Ljubljana, year 2022,
part 1
Economic activities Codes
Absolute
turnover in
EUR
Proportion in
turnover of
Petrol d.d.,
Ljubljana, in %
Taxonomy-
aligned
proportion of
turnover, year
2022 (%)
Category enabling (E)
or transitional (T)
activity
A.) TAXONOMY - ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.3 Installation, maintenance and repair of energy efficiency equipment F43, M71, S95.22, C33.12 25,669,651 0.35 37.21 E
4.14 Transmission and distribution networks for renewable and low-carbon gases D35.22, F42.21, H49.50 12,833,989 0.18 18.60
4.15 District heating/cooling distribution D35.30 8,900,962 0.12 12.90
4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel D35.11, D35.30 4,295,538 0.06 6.23 T
4.9 Transmission and distribution of electricity D35.12, D35.13 3,141,003 0.04 4.55 E
5.3 Construction, extension and operation of waste water collection and treatment E37.00, F42.99 2,363,709 0.03 3.43
5.1 Construction, extension and operation of water collection, treatment and supply
systems
E36.00, F42.99
2,312,603 0.03 3.35
5.2 Renewal of water collection, treatment and supply systems E36.00, F42.99 1,851,408 0.03 2.68
4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating
and cooling system
D35.30
1,657,045 0.02 2.40 T
4.20 Cogeneration of heat/cool and power from bioenergy D35.11, D35.30 1,652,245 0.02 2.40
8.2. Data-driven solutions for GHG emissions reductions J61, J62, J63.11 1,453,842 0.02 2.11 E
4.24 Production of heat/cool from bioenergy D35.30 1,120,131 0.02 1.62
4.1 Electricity generation using solar photovoltaic technology D35.11, F42.22 794,998 0.01 1.15
6.15 Infrastructure enabling low-carbon road transport and public transport F42.11, F71.1 646,414 0.01 0.94 E
6.5 Transport by motorbikes, passenger cars and light commercial vehicles H49.39, N77.11 278,964 0.00 0.40 T
4.8 Electricity generation from bioenergy D35.11 10,064 0.00 0.01
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) / 68,982,565 0.94 100.00
A.2 Taxonomy-Eligible but not environmentally sustainable actvities (not
Taxonomy-aligned activities)
Turnover of Taxonomy-Eligible but not environmentally sustainable actvities (not
Taxonomy-aligned activities) (A.2)
/
0 0.00
Total (A.1 + A.2) / 68,982,565 0.94 100.00
B.) TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B) /
7,246,777,611 99.06
Total (A + B) /
7,325,325,520 100

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Proportion of sales turnover from products or services associated with taxonomy-
aligned economic activities disclosure covering Petrol d.d., Ljubljana, year 2022,
part 2
At Petrol d.d., Ljubljana, sales turnover from taxonomy-eligible activities stood at EUR
68,982,565 or 0.94 percent in 2022, accounting for 82.76 percent of taxonomy-aligned sales
turnover of the Petrol Group in Slovenia and Croatia and 0.75 percent of total sales turnover
of the Petrol Group in Slovenia and Croatia. In 2021, taxonomy-aligned (alignment assessed
for the first time in 2022) turnover amounted to EUR 70,401,093 or 1.98 percent of total sales
turnover of Petrol d.d., Ljubljana. The low proportion of taxonomy-aligned turnover in 2022 was
affected by the situation in the energy market which contributed significantly to an increase in
total turnover (EUR 7,325,325,520 in 2022 and EUR 3,486,618,697 EUR in 2021). The
taxonomy-aligned sales turnover from enabling activities accounted for 44.81 percent of all
taxonomy-aligned sales turnover of Petrol d.d., Ljubljana.
Economic activities
Substantital
contribution
criteria
Climate change
mitigation (%)
Minimum
safeguards
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy
Pollution
Biodiversity and
ecosystems
A.) TAXONOMY - ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.3 Installation, maintenance and repair of energy efficiency equipment 100% YES YES - - YES - YES
4.14 Transmission and distribution networks for renewable and low-carbon gases 100% YES YES YES - YES YES YES
4.15 District heating/cooling distribution 100% YES YES YES - YES YES YES
4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel 100% YES YES YES - YES YES YES
4.9 Transmission and distribution of electricity 100% YES YES - YES YES YES YES
5.3 Construction, extension and operation of waste water collection and treatment 100% YES YES YES - YES YES YES
5.1 Construction, extension and operation of water collection, treatment and supply
systems
100% YES YES YES - - YES YES
5.2 Renewal of water collection, treatment and supply systems 100% YES YES YES - - YES YES
4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating
and cooling system
100% YES YES YES - YES YES YES
4.20 Cogeneration of heat/cool and power from bioenergy 100% YES YES YES - YES YES YES
8.2. Data-driven solutions for GHG emissions reductions 100% YES YES - YES - - YES
4.24 Production of heat/cool from bioenergy 100% YES YES YES - YES YES YES
4.1 Electricity generation using solar photovoltaic technology 100% YES YES - YES - YES YES
6.15 Infrastructure enabling low-carbon road transport and public transport 100% YES YES YES YES YES YES YES
6.5 Transport by motorbikes, passenger cars and light commercial vehicles 100% YES YES - YES YES - YES
4.8 Electricity generation from bioenergy 100% YES YES YES - YES YES YES
DNSH criteria ("Does Not Significantly Harm")

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Proportion of CapEx from products or services associated with taxonomy-aligned
economic activities - disclosure covering the Petrol Group (Slovenia and Croatia), year
2022, part 1
* The companies included in the analysis: Petrol d.d., Ljubljana, Petrol Skladiščenje d.o.o., Petrol GEO d.o.o.,
Ekoen d.o.o., Ekoen S d.o.o., Mbills d.o.o., Geoplin d.o.o. Ljubljana, Atet d.o.o., E 3, d.o.o., Petrol d.o.o.,
Vjetroelektrane Glunča d.o.o, Vjetroelektrana Ljubač d.o.o., andZagorski metalac d.o.o.
Economic activities Codes
Absolute
CapEx in EUR
Taxonomy-aligned
proportion of CapEx,
year 2022 (%)
Category
enabling (E) or
transitional (T)
activity
A.) TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
4.1 Electricity generation using solar photovoltaic technology D35.11, F42.22
11,780,356 21.11 38.97
7.3 Installation, maintenance and repair of energy efficiency equipment F43, M71, S95.22, C33.12 10,331,729 18.51 34.17 E
4.20 Cogeneration of heat/cool and power from bioenergy D35.11, D35.30 2,146,368 3.85 7.10
4.3 Electricity generation from wind power D35.11, F42.22 1,850,769 3.32 6.12
6.15 Infrastructure enabling low-carbon road transport and public transport F42.11, F71.1 1,239,173 2.22 4.10 E
4.15 District heating/cooling distribution D35.30 1,014,583 1.82 3.36
4.9 Transmission and distribution of electricity D35.12, D35.13 992,668 1.78 3.28 E
6.5 Transport by motorbikes, passenger cars and light commercial vehicles H49.39, N77.11 202,957 0.36 0.67 T
4.8 Electricity generation from bioenergy D35.11 198,018 0.35 0.65
4.14 Transmission and distribution networks for renewable and low-carbon gases D35.22, F42.21, H49.50 181,261 0.32 0.60
5.1 Construction, extension and operation of water collection, treatment and supply
systems
E36.00, F42.99
160,821 0.29 0.53
4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel D35.11, D35.30 49,164 0.09 0.16 T
8.2. Data-driven solutions for GHG emissions reductions J61, J62, J63.11 42,297 0.08 0.14 E
5.3 Construction, extension and operation of waste water collection and treatment E37.00, F42.99 14,410 0.03 0.05
4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating
and cooling system
D35.30
13,758 0.02 0.05 T
7.6 Installation, maintenance and repair of renewable energy technologies F42, F43, M71 13,758 0.02 0.05 E
CapEx of environmentall sustainable activities (Taxonomy-aligned) (A.1) / 30,232,090 54.17 100.00
A.2 Taxonomy-Eligible but not environmentally sustainable actvities (not
Taxonomy-aligned activities)
CapEx of Taxonomy-Eligible but not environmentally sustainable actvities (not
Taxonomy-aligned activities) (A.2)
/
0 0.00
Total (A.1 + A.2) / 30,232,090 54.17 100.00
B.) TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities (B) /
25,577,466 45.83
Total (A + B)* /
55,809,556 100
Proportion of
gross CapEx in
total gross
Capex of the
companies
included in the
analysis*, in %

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Proportion of CapEx from products or services associated with taxonomy-aligned
economic activities - disclosure covering the Petrol Group (Slovenia and Croatia), year
2022, part 2
In the calculation of the indicators related to capital expenditure, the net amount of capital
expenditure of the Petrol Group in Slovenia and Croatia is added to the subsidies received for
energy-efficient renovation projects, which is taken into account in both the denominator and
in the numerator of activity 7.3 Installation, maintenance and repair of energy efficiency
equipment. Petrol d.d., Ljubljana’s capital expenditure for M&A projects amounting to EUR
2,499,482 are also taken into account and classified accordingly.
In 2022, the Petrol Group’s capital expenditure in Slovenia and Croatia amounted to EUR
55,809,556, of which 54.17 percent (EUR 30,232,090) was capital expenditure for taxonomy-
aligned activities.
Of the 16 identified taxonomy-aligned activities, the first five represent 90.24 percent of the
total capital expenditure of the Petrol Group in Slovenia and Croatia in 2022 for environmentally
sustainable activities (aligned with taxonomy), namely:
38.97 percent activity 4.1 Electricity generation using solar photovoltaic technology (the
largest contribution comes from investments in solar power plants in Croatia);
34.17 percent activity 7.3 Installation, maintenance and repair of energy efficiency
equipment (includes projects for the energy-efficient renovation of public buildings and, to
a lesser extent, own facilities - points of sale);
Economic activities
Substantital
contribution
criteria
Climate change
mitigation (%)
Minimum
safeguards
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy
Pollution
Biodiversity
and
ecosystems
A.) TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
4.1 Electricity generation using solar photovoltaic technology 100% YES YES - YES - YES YES
7.3 Installation, maintenance and repair of energy efficiency equipment 100% YES YES - - YES - YES
4.20 Cogeneration of heat/cool and power from bioenergy 100% YES YES YES - YES YES YES
4.3 Electricity generation from wind power 100% YES YES YES YES - YES YES
6.15 Infrastructure enabling low-carbon road transport and public transport 100% YES YES YES YES YES YES YES
4.15 District heating/cooling distribution 100% YES YES YES - YES YES YES
4.9 Transmission and distribution of electricity 100% YES YES - YES YES YES YES
6.5 Transport by motorbikes, passenger cars and light commercial vehicles 100% YES YES - YES YES - YES
4.8 Electricity generation from bioenergy 100% YES YES YES - YES YES YES
4.14 Transmission and distribution networks for renewable and low-carbon gases 100% YES YES YES - YES YES YES
5.1 Construction, extension and operation of water collection, treatment and supply
systems
100% YES YES YES - - YES YES
4.30 High-efficiency co-generation of heat/cool and power from fossil gaseous fuel 100% YES YES YES - YES YES YES
8.2. Data-driven solutions for GHG emissions reductions 100% YES YES - YES - - YES
5.3 Construction, extension and operation of waste water collection and treatment 100% YES YES YES - YES YES YES
4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating
and cooling system
100% YES YES YES - YES YES YES
7.6 Installation, maintenance and repair of renewable energy technologies 100% YES YES - - - - YES
DNSH criteria ("Does Not Significantly Harm")

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7.10 percent activity 4.20 Cogeneration of heat/cool and power from bioenergy (wood
biomass);
6.12 percent activity 4.3 Electricity generation from wind power;
4.10 percent activity 6.15 Infrastructure enabling low-carbon road transport and public
transport (e-charging infrastructure in Slovenia and Croatia).
The taxonomy-aligned proportion of the capital expenditure for enabling activities was 41.74
percent.
Proportion of CapEx from products or services associated with taxonomy-aligned
economic activities - disclosure covering Petrol d.d., Ljubljana, year 2022, part 1
Economic activities Codes
Absolute
CapEx in EUR
Proportion in
CapEx of Petrol
d.d., Ljubljana,
in %
Taxonomy-aligned
proportion of CapEx,
year 2022 (%)
Category
enabling (E) or
transitional (T)
activity
A.) TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.3 Installation, maintenance and repair of energy efficiency equipment F43, M71, S95.22, C33.12
10,033,039 25.28 58.57 E
4.20 Cogeneration of heat/cool and power from bioenergy D35.11, D35.30 2,126,421 5.36 12.41
4.15 District heating/cooling distribution D35.30 994,635 2.51 5.81
4.9 Transmission and distribution of electricity D35.12, D35.13 887,865 2.24 5.18 E
4.14 Transmission and distribution networks for renewable and low-carbon gases D35.22, F42.21, H49.50 871,987 2.20 5.09
6.15 Infrastructure enabling low-carbon road transport and public transport F42.11, F71.1 735,261 1.85 4.29 E
4.3 Electricity generation from wind power D35.11, F42.22 680,882 1.72 3.97
4.1 Electricity generation using solar photovoltaic technology D35.11, F42.22 369,997 0.93 2.16
4.8 Electricity generation from bioenergy D35.11 198,018 0.50 1.16
5.1 Construction, extension and operation of water collection, treatment and supply
systems
E36.00, F42.99
160,821 0.41 0.94
8.2. Data-driven solutions for GHG emissions reductions J61, J62, J63.11 42,297 0.11 0.25 E
5.3 Construction, extension and operation of waste water collection and treatment E37.00, F42.99 14,410 0.04 0.08
7.6 Installation, maintenance and repair of renewable energy technologies F42, F43, M71 13,758 0.03 0.08 E
CapEx of environmentall sustainable activities (Taxonomy-aligned) (A.1) / 17,129,389 43.16 100.00
A.2 Taxonomy-Eligible but not environmentally sustainable actvities (not
Taxonomy-aligned activities)
CapEx of Taxonomy-Eligible but not environmentally sustainable actvities (not
Taxonomy-aligned activities) (A.2)
/
0 0.00
Total (A.1 + A.2) / 17,129,389 43.16 100.00
B.) TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities (B) /
22,561,208 56.84
Total (A + B) /
39,690,597 100

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Proportion of CapEx from products or services associated with taxonomy-aligned
economic activities - disclosure covering Petrol d.d., Ljubljana, year 2022, part 2
At Petrol d.d., Ljubljana, capital expenditures for taxonomy-aligned activities stood at EUR
17,129,389 or 43.16 percent of total capital expenditures of the Company in (a total of EUR
39,690,597 of total capital expenditures, of which M&A projects amounted to EUR 2,499,482).
In 2021, the reported percentage of capital expenditures for in taxonomy-aligned activities
(alignment assessed for the first time in 2022) of Petrol d.d., Ljubljana, amounted to 57.30
percent of total capital expenditures (a total of EUR 25,665,491 of total capital expenditures,
excluding M&A projects). The share of taxonomy-aligned capital expenditures from enabling
activities accounted for 68.37 percent.
The Petrol Group in Slovenia and Croatia has no significant operating expenses (OpEx) from
products or services associated with taxonomy-eligible or taxonomy-aligned economic
activities.
Sustainable economic activities and sustainable investments at Petrol Group follow the
strategic objectives of the Energy Transition and Green Future 2021-2025, with a focus on
improving energy efficiency, investing in production, developing sustainable mobility and smart
energy management (see Section 14.3 Energy and Solutions for more details).
Economic activities
Substantital
contribution
criteria
Climate change
mitigation (%)
Minimum
safeguards
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy
Pollution
Biodiversity
and
ecosystems
A.) TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.3 Installation, maintenance and repair of energy efficiency equipment 100% YES YES - - YES - YES
4.20 Cogeneration of heat/cool and power from bioenergy 100% YES YES YES - YES YES YES
4.15 District heating/cooling distribution 100% YES YES YES - YES YES YES
4.9 Transmission and distribution of electricity 100% YES YES - YES YES YES YES
4.14 Transmission and distribution networks for renewable and low-carbon gases 100% YES YES YES - YES YES YES
6.15 Infrastructure enabling low-carbon road transport and public transport 100% YES YES YES YES YES YES YES
4.3 Electricity generation from wind power 100% YES YES YES YES - YES YES
4.1 Electricity generation using solar photovoltaic technology 100% YES YES - YES - YES YES
4.8 Electricity generation from bioenergy 100% YES YES YES - YES YES YES
5.1 Construction, extension and operation of water collection, treatment and supply
systems
100% YES YES YES - - YES YES
8.2. Data-driven solutions for GHG emissions reductions 100% YES YES - YES - - YES
5.3 Construction, extension and operation of waste water collection and treatment 100% YES YES YES - YES YES YES
7.6 Installation, maintenance and repair of renewable energy technologies 100% YES YES - - - - YES
DNSH criteria ("Does Not Significantly Harm")

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Nada Drobne Popov
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, 6 April 2023

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10. Performance analysis of the Petrol Group 2022
10.1 Business environment
The year 2022 began with an ongoing COVID-19 epidemic and stable economic growth, but
also with high energy product prices fuelled by the war in Ukraine. The high prices of energy
products and rising inflation led to fuel price regulation in the markets where we operate. Fuel
price regulation was followed by natural gas and electricity price regulation, all of which have
an impact on Petrol’s operations.
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 often interdependent factors, in particular changes in energy product prices and the US
dollar exchange rate, which are a reflection of the global economic trends. In addition,
operations in the Petrol Group’s markets are influenced to a significant 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.
Another factor affecting business is the measures taken by countries to contain the pandemic,
as shown when it first emerged.
In its World Economic Outlook, published in early October 2021, the IMF expected the
economy to recover. With the start of the Russian invasion of Ukraine at the end of February
2022, the outlook has deteriorated significantly. In the autumn of 2021, when the 2022
business plan was being prepared, the IMF’s October forecast for 2022 was 4.6 percent GDP
growth for Slovenia and 5.8 percent GDP growth for Croatia. In its Autumn Economic Outlook
(2021) for Slovenia, the UMAR expected a GDP growth of 4.7 percent in 2022. Economic
growth was expected to be mainly driven by domestic consumption.
In 2022, Slovenia’s GDP growth stood at 5.4 percent and the inflation rate averaged 8.8
percent. The annual inflation rate in December 2022 was 10.3 percent. According to Hrvatska
narodna banka, the annual GDP growth rate in Croatia stood at 6.3 percent and inflation at
10.6 percent in December 2022.
GDP change in %
Source: International Monetary Fund, IMAD

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The Petrol Group strictly follows government instructions in preparing and implementing
measures in all its markets. We have followed all the instructions regarding the implementation
of measures to limit the spread of SARS-CoV-2 infection. For example, until 20 February 2022,
access to the sales premises of service stations in Slovenia was only allowed with a valid RVT
certificate, but this condition has been abolished as of 21 February 2022. We also comply with
all the regulations on the pricing of petroleum products and other energy products in all the
markets in which we operate.
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.
Oil and petroleum product price movements
Oil and petroleum product prices have been increasing in value since the beginning of 2022.
Following the Russian attack on Ukraine at the end of February 2022, we have seen huge
price hikes for both oil and, by extension, all petroleum products. The price peaked on 8 March
2022 at USD 137.6 per gallon, up 74 percent since the beginning of the year. After the initial
shock at the beginning of April, growth moderated, but in mid-May, prices started to rise again,
reaching similar peaks in mid-June as in March. Prices then fell to the levels at the start of the
war in Ukraine. At the beginning of November, prices had fallen to around USD 80 per barrel,
i.e. to early 2022 prices.
The average price for a barrel of Brent Dated North Sea crude oil stood at USD 101.3 per
barrel in 2022 and was up 43 percent year-on-year while the average price in euros was up 60
percent. Brent crude oil reached its highest value in the reviewed period on 8 March 2022,
namely USD 137.6 per barrel, and the lowest value on 8 December 2022 of USD 76.4 per
barrel.
The prices of petrol and middle distillates mostly followed the same trends as crude oil prices.
The increase in the price of petrol was similar to that of crude oil, but lower than that of diesel,
heating oil and kerosene. The price of diesel peaked on 21 June 2022 at USD 1,409.3 per
metric tonne, up 104 percent compared to the beginning of 2022. As with crude oil, this was
followed by a fall in prices of petroleum products to below USD 1,000 per metric tonne.
At the beginning of August, diesel, heating oil and kerosene prices started to rise again, while
petrol prices remained at the same levels or started to fall. The difference between diesel and
petrol rose to USD 300 per metric tonne at the end of August (the price of diesel was higher
than the price of petrol). From September to the end of the year, the difference between the
prices of the two fuels fluctuated between USD 100 and 300 per metric tonne, ending the year
at a difference of USD 110 per metric tonne. The price of petrol at the end of 2022 was up 8
percent compared to the beginning of 2022, while the price of diesel was up 35 percent since
the beginning of the year.
Going forward, the main influences on crude oil prices will be: the situation in Ukraine, the
OPEC agreements on the volume of oil to be produced, and the impact of the global recession
on lower oil demand.

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Changes in Brent Dated High oil price in 2022 in USD/barrel
Source: Petrol, 2022
Changes in Brent Dated High oil price in 2022 in EUR/barrel
Source: Petrol, 2022
Regulation of petroleum product prices
In Slovenia, the retail prices of petrol NMB-95 and diesel were formed freely according to the
market conditions until 14 March 2022, when the Government of the Republic of Slovenia
adopted the Decree on setting prices for certain petroleum products, which set the maximum
retail price of EUR 1.503 per litre for petrol NMB-95 and EUR 1.541 per litre for diesel. On 31
March 2022, the Decree on setting prices for certain petroleum products also set a maximum
wholesale price of EUR 1.483 per litre for NMB-95 petrol and EUR 1.521 per litre for diesel.
Both for retail and wholesale prices, the Decree applied up to and including 30 April 2022.

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Prices were not regulated until 10 May 2022, until re-regulation with effect from 11 May to 10
August 2022. The Government of the Republic of Slovenia set the maximum retail price of
NMB-95 at EUR 1,560 per litre and the maximum wholesale price at EUR 1,540 per litre. For
diesel, it regulated the price at EUR 1.668 per litre retail and EUR 1.648 per litre wholesale.
The Decree was in force until 20 June 2022.
On 15 June 2022, the Government of the Republic of Slovenia adopted a new Decree
exempting the prices of motor fuels at service stations on motorways and expressways, as
well as the following premium fuels: NMB 100 and iQ diesel. Retail and wholesale prices for
these service stations and premium fuels are set freely by the market. The Government
adopted a Decree and suspended the cap on maximum prices and limited the level of the
seller’s margin to EUR 0.0591 per litre for diesel and EUR 0.0607 per litre for NMB-95, and
after 17 August 2022 to EUR 0.0983 per litre for diesel and EUR 0.0994 per litre for NMB-95.
The Decree shall apply from 21 June 2022 inclusive, for a period of one year. The Decree
excludes the biocomponent markup from the formula for calculating the model price, although
it still has to be added to the fossil fuels in accordance with the Decree on renewable energy
sources in transport of 30 December 2021.
According to the new Decree adopted by the Government of the Republic of Slovenia on 2
December 2022, the biocomponent markup for NMB-95 and diesel is also considered in the
calculation of the maximum retail prices. For the first calculation of the 14-day average selling
price of the current period net of duties, the accounting period from 21 November 2022 to 2
December 2022 was taken into account.
Due to the 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, and on 20
January 2022, it was extended for another three months. The margin regulation of EUR 0.0600
per litre was extended by a new Decree of 21 April 2022 for another month and remained in
force until 21 May, when the price regulation for heating gas oil also expired. On 9 October
2022, the Government of the Republic of Slovenia adopted the Decree amending the Decree
on setting prices for certain petroleum products, which reintroduced the state regulation of the
prices of heating gas oil. As from 13 September 2022, the maximum margin allowed is EUR
0.08 per litre.
In Croatia, on 7 February 2022, the Government of the Republic of Croatia adopted the Decree
on setting maximum retail prices for petroleum products. The Decree set maximum prices for
the following motor fuels for a period of 30 days: petrol (eurosuper 95) at HRK 11.37 per litre
(EUR 1.51 per litre), diesel (eurodiesel) at HRK 11.29 per litre (EUR 1.49 per litre) and blue
diesel (eurodiesel BS blue) at HRK 6.50 per litre (EUR 0.86 per litre).
On 7 March 2022, the Government of the Republic of Croatia adopted a new Decree on setting
maximum retail prices for petroleum products with a validity of up to 90 days. The Decree set
out the pricing model for petrol, diesel, and blue diesel and a maximum margin that could be
charged by oil traders, namely for petrol (eurosuper 95) of HRK 0.75 per litre (EUR 0.099 per
litre), diesel (eurodiesel) of HRK 0.75 per litre (EUR 0.099 per litre) and blue diesel of HRK
0.50 per litre (EUR 0.066 per litre).

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On 17 March 2022, the Government of the Republic of Croatia adopted an addendum to the
Decree, removing the biocomponent markup from the formula for calculating the maximum
price. On 17 March 2022, the Government of the Republic of Croatia also adopted a new
Decree to reduce the penalty for non-mixing in the biocomponent.
By Decree of 7 June 2022, the Government of the Republic of Croatia reduced the regulated
margins of oil traders for petrol (eurosuper 95) and diesel (eurodiesel) to HRK 0.65 per litre
(EUR 0.086 per litre) and for blue diesel to HRK 0.40 per litre (EUR 0.053 per litre) and changed
the retail price calculation method by extending the accounting period to 14 days (previously
7 days).
In an amendment to the Decree of 20 June 2022, the Government of the Republic of Croatia
separated the regulation of sales at motorway and other locations. For fuels not sold on
motorways, it has set the following maximum retail prices: petrol (eurosuper 95) at HRK 13.50
per litre (EUR 1.794 per litre), diesel (eurodiesel) at HRK 13.08 per litre (EUR 1.738 per litre)
and blue diesel (eurodiesel BS blue) at HRK 9.45 per litre (EUR 1.256 per litre). For fuels at
motorway locations, the margin regulation was set at 0.65 per litre (EUR 0.0863 per litre) for
petrol (eurosuper 95), HRK 0.65 per litre (EUR 0.0863 per litre) for diesel (eurodiesel) and
HRK 0.40 per litre (EUR 0.0531 per litre) for blue diesel (EUR 0.40 per litre).
On 4 July 2022, the Government of the Republic of Croatia adopted a Decree, keeping in force
the separation of regulation in the retail sector on motorways and other locations, as was
already the case under the previously valid Decree adopted on 20 June 2022. Additionally, for
the first time in Croatia, the wholesale price was regulated which, however, could not be higher
than the retail price for off-motorway retail outlets.
On 18 July 2022, the Government of the Republic of Croatia adopted a new Decree reverting
to the margin regulation of HRK 0.65 per litre (EUR 0.086 per litre) for petrol (eurosuper 95)
and HRK 0.65 per litre (EUR 0.086 per litre) for diesel while the regulated maximum retail price
for blue diesel remained at HRK 9.45 per litre (EUR 1.256 per litre). At the same time, the
Decree ended the separation of regulation between motorway and other locations. On 25
March 2022, the Government of the Republic of Croatia adopted an addendum to the Decree,
regulating the sellers’ margin also for blue diesel at HRK 0.40 per litre (EUR 0.053 per litre).
The addendum to the Decree was in force until 22 August 2022, when a new Decree
reintroduced a maximum price of HRK 8.49 per litre (EUR 1.13 per litre).
On 12 September 2022, the Government of the Republic of Croatia passed a new Decree,
effective for 14 days from the date of publication, to additionally regulate LPG, namely the
margin for propane-butane blend for large tanks or gas storage tanks at HRK 2.80 per kg (EUR
0.3716 per kg) and the maximum price for LPG cylinders (7.5 kg or more) at HRK 13.94 per
kg (EUR 1.85 per kg). On 26 September, it extended the validity of the previous Decree by
adopting a new Decree, which was in effect for 7 days after the date of publication.
On 4 October 2022, the Government of the Republic of Croatia passed a new Decree, effective
for 14 days from the date of publishing, to extend the validity of the Decree adopted on 27
September 2022, with which it regulated LPG margin, namely the margin for propane-butane
blend for large tanks or gas storage tanks at HRK 2.80 per kg (EUR 0.3716 per kg) and the
maximum price for LPG cylinders (7.5 kg or more) at HRK 13.94 per kg (EUR 1.85 per kg).

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On 17 October 2022, the Government of the Republic of Croatia adopted a new Decree, which
was in effect for seven days from the date of publication, regulating the maximum prices of the
following energy products: HRK 10.72 per litre (EUR 1.42 per litre) for petrol (eurosuper 95),
HRK 12.30 per litre (EUR 1.63 per litre) for diesel, HRK 8.49 per litre (EUR 1.13 per litre) for
blue diesel, HRK 13.94 per litre (EUR 1.85 per litre) for LPG cylinders, and HRK 10.01 per litre
(EUR 1.33 per litre) for LPG tanks/gas storage tanks.
On 24 October 2022, the Government of the Republic of Croatia adopted a new Decree,
reverting to the regulation of the margin, namely for petrol (eurosuper 95) at HRK 0.65 per litre
(EUR 0.0863 per litre), for diesel (eurodiesel) at HRK 0.65 per litre (EUR 0.0863 per litre), for
propane-butane blend for large tanks or gas storage tanks at HRK 2.80 per kg (EUR 0.3716
per kg), for LPG cylinders (7.5 kg or more) at HRK 6.20 per kg (EUR 0.8229 per kg), while for
blue diesel, the maximum retail price remained regulated at HRK 8.49 per litre (EUR 1.13 per
litre). The Decree was in force for 14 days from the date of its publication.
On 7 November 2022, the Government of the Republic of Croatia adopted a new Decree on
the regulation of the prices of petroleum products, effective for 14 days from the date of
publication. The margins remained the same as in the previously valid Decree.
On 21 November 2022, the Government of the Republic of Croatia adopted a new Decree,
setting the margins, namely for petrol (eurosuper 95) at HRK 0.65 per litre (EUR 0.0863 per
litre), for diesel (eurodiesel) at HRK 0.65 per litre (EUR 0.0863 per litre), for propane-butane
blend for large tanks or gas storage tanks at HRK 2.80 per kg (EUR 0.3716 per kg), for LPG
cylinders (7.5 kg or more) at HRK 6.20 per kg (EUR 0.8229 per kg), while for blue diesel, the
maximum retail price remained regulated at HRK 8.49 per litre (EUR 1.13 per litre). The Decree
was in force for 14 days from the date of its publication.
On 5 December 2022, the Government of the Republic of Croatia adopted a new Decree, valid
until 21 December 2022, setting the margin for blue diesel at HRK 0.4 per litre (EUR 0.0531
per litre), while the margins for petrol, eurodiesel, propane-butane blend for large tanks or gas
chambers and LPG cylinders remained unchanged compared to the previous Decree.
On 19 December 2022, the Government of the Republic of Croatia extended the validity of the
previously adopted Decree until 2 January 2023, setting maximum margins of HRK 0.65 per
litre (EUR 0.0863 per litre) for petrol (eurosuper 95), HRK 0.65 per litre (EUR 0.0863 per litre)
for eurodiesel, HRK 0.4 per litre (EUR 0.0531 per litre) for blue diesel, HRK 2.80 per kg (EUR
0.3716 per kg) for large tanks or gas storage tanks, and HRK 6.20 per kg (EUR 0.8229 per kg)
for LPG cylinders (7.5 kg or more).
In Serbia, the Government of the Republic of Serbia has adopted a Decree on the price
capping of petroleum (non-additivated) products, which applies to eurodiesel and unleaded
petrol and is in force as of 12 February 2022. The amended Decree of 11 March 2022 sets the
maximum retail price with value-added tax for eurodiesel and unleaded petrol NMB 95 at the
average wholesale price of petroleum products in Serbia, increased by RSD 6 per litre (EUR
0.05 per litre), and later (by amendment on 29 April 2022) increased by RSD 7 per litre (EUR
0.06 per litre). Before that, retail prices for petroleum products were formed freely according to
the market conditions. The Government of the Republic of Serbia extends the validity of the
Decree on a monthly basis.

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In Bosnia and Herzegovina, from 3 April 2021, the retail calculation margin is limited to a
maximum of BAM 0.25 per litre (EUR 0.128 per litre) and the wholesale margin to BAM 0.06
per litre (EUR 0.0307 per litre) - before that, the retail prices of petroleum products were formed
freely according to the market conditions.
In Montenegro, the prices of petroleum products are set in accordance with the Decree 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 EUR and USD exchange rates are rounded off. Before
that, the prices of petroleum products were set in accordance with the Decree in force from 1
January 2011.
Price movements of other energy products
In 2022, with electricity prices rising exponentially, we recorded the highest prices in the history
of trading on 28 August 2022. The annual electricity base product on the Hungarian market for
2023 peaked at EUR 1,007 and the annual electricity base product on the Hungarian market
for 2024 stood at EUR 476.7, while the spot price formed on the Slovenian market peaked at
EUR 751.3. The rise in electricity prices that we have witnessed since the beginning of the
year is a reflection of the high energy prices on the world exchanges, stock market speculation
and the war in Ukraine, which has led the European Union to impose a number of economic
sanctions against Russia in order to weaken the Kremlin’s ability to finance the war.
From the beginning of 2022 until the record price on 28 August 2022, the annual base
electricity product on the Hungarian market for 2023 was 8 times the initial value, the annual
base electricity product for 2024 was 3.8 times the initial value, while the spot price formed on
the Slovenian market was 13.5 times the initial value.
The upward trend in stock market prices ceased at the end of August, when electricity and
natural gas prices peaked. The reversal of the trend followed the announcement of a draft
regulation by EU ministers reaching a political agreement on measures to tackle energy price
rises, as well as favourable temperatures that have diverged from the historical averages
across Europe. The EU’s actions and efforts to tackle the energy crisis have been matched by
a high occupancy rate of EU gas storage facilities: pipeline-filled natural gas storage facilities
reached 95 percent occupancy in the second half of November 2022, while tanker-filled natural
gas storage facilities reached 73 percent occupancy. In addition, electricity generation from
gas-fired power plants has largely decreased, while electricity generation from renewable
energy sources has increased.
However, there are still a number of factors that could significantly tighten Europe’s energy
balance: an extremely cold winter, a shortage of natural gas supplies to the EU due to
increased global demand for natural gas, especially in Asia, the complete loss of currently
existing Russian gas supplies, and others.

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Trends in electricity prices in 2021 and 2022 and projections for 2023 and 2024
Source: Petrol, 2022
Trends in natural gas prices in 2021 and 2022 and projections for 2023 and 2024
Source: Petrol, 2022
Price regulation of other energy products
In Slovenia, on 5 March 2022, the Government of the Republic of Slovenia adopted the Act
Determining Measures to Mitigate the Consequences of Energy Commodity Price Rise in
Business and Agriculture, which equalized the conditions for the supply of natural gas for the

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common boiler rooms of floor owners with the prices of natural gas for household customers,
with effect from 1 January 2022.
On 14 July 2022, the Government of the Republic of Slovenia adopted the Decree on the
determination of electricity prices, which sets the maximum permissible retail electricity price
for household and small business customers as defined by the Electricity Supply Act and for
consumption in common areas of multi-apartment buildings and in common areas of mixed
multi-apartment and mixed multi-business buildings.
On 21 July 2022, the Government of the Republic of Slovenia also adopted the Decree on
setting gas prices from the system, which sets the maximum permitted retail price of natural
gas from the gas system of the transport and distribution network for household customers, for
final gas customers supplying heat to several households through a common heating
installation owned or co-owned by these households, for basic social services as defined in
the second indent of paragraph one of Article 117 of the Gas Supply Act and for customers
who, on the date of entry into force of this Decree, are small business customers as defined in
the Gas Supply Act. For households and common household customers, the maximum
allowable tariff items for gas are EUR 0.07300 per kWh (excluding VAT). For small business
customers and basic social services, the maximum allowable tariff for gas is EUR 0.07900 per
kWh (excluding VAT).
Both Decrees set a maximum retail selling price for energy products from 1 September 2022
to 31 August 2023.
At the beginning of September 2022, the Government adopted the Act Amending the Gas
Supply Act. The amendments, inter alia, update the definition of household gas customers to
prevent abuse and ensure that all households have the right to a basic gas supply. The Act
also guarantees a basic and substitute gas supply to all protected customers who are (would
be) suddenly left without a supplier or the offer of a new supplier. The Act also broadened the
definition of protected customers, including primary schools, kindergartens and health centres.
The suppliers of the substitute natural gas supply are designated by the Energy Agency on the
basis of the Act.
In September 2022, the Act on Measures for the Management of Crisis Conditions in the Field
of Energy Supply was adopted. This has set the basis for the identification of temporary
management measures in times of increased energy supply risk, as well as measures to
ensure the security of the energy supply, to reduce import dependency and to reduce the
pressure on energy prices due to the volatility of energy markets.
On 27 October 2022, an amendment to the Decree on setting gas prices from the system was
adopted - the maximum retail price also applies to household customers of district heating,
and the Decree also redefines the maximum retail price of gas for kindergartens, primary
schools and health centres, as well as for the substitute and basic supply of natural gas for
protected customers. The Decree applies from 1 November 2022 to 31 August 2023.
In December 2022, the Government also set a maximum retail price for natural gas from the
system for certain public entities, such as public bodies, public economic institutions, public
agencies, public funds and municipalities. The Decree on setting gas prices from the system
sets the maximum permitted retail price of natural gas from the gas system of the transmission
and distribution network for certain legal entities under public law, for providers of publicly valid

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education and training programmes, and for providers of social care services, social welfare
programmes and family support programmes. The gas price is capped at EUR 0.095 per kWh
for the period from 1 January 2023 to 31 December 2023.
In Croatia, on 8 September 2022, the Government of the Republic of Croatia adopted the
Decree on the elimination of disturbances on the domestic energy market, setting the electricity
price for household and business customers and for public institutions, effective from 1 October
2022 to 31 March 2023.
On 14 September 2022, the Government of the Republic of Croatia adopted a Decree
supplementing and amending the previously valid Decree, which also laid down special
measures for trade in natural gas.
On 19 September 2022, the Government of the Republic of Croatia adopted a Decision on the
level of tariff rates for the guaranteed gas supply to non-household end customers of natural
gas for the period from 1 October to 31 December 2022.
Effect of changes in the USD/EUR exchange rate
The exchange rate between the US dollar and the euro in 2022 ranged between 0.96 and 1.15
USD per 1 euro. The average exchange rate of the US dollar according to the exchange rate
of the European Central Bank in 2022 was 1.05 USD for 1 EUR.
10.2 Operations of the Petrol Group
In June 2021, the Petrol Group adopted a new corporate structure for the Company and the
Petrol Group. The reorganisation was carried out 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
reorganisation is reflected in stronger market integration, a regional approach and the
standardisation of business processes. It brings more efficient processes, the unification and
optimisation of the operation of support functions, customer focus and a unified presence on
the markets in subsidiaries.
Sales, which focuses on the customer with the aim of increasing the proportion of time spent
with customers and increasing sales revenue, has been separated from product management.
Product management focuses on product development and lifecycle management, group sales
and profitability planning, ensuring a high customer experience and maximising the profitability
of the group’s products.
Accordingly, we have started to report results by the following product groups from 2022
onwards:
Fuels and petroleum products, which includes sales of petroleum products, sales of LPG
and other alternative energy (compressed natural gas), the transport, storage and handling
of fuels, payment card sales revenues, and sales of biomass, tyres and tubes, and
batteries.
Merchandise and services, which includes the sale of foodstuffs, haberdashery, tobacco
products, lotteries, coupons and cards, coffee on the go, Fresh products, car cosmetics
and spare parts, as well as car wash services, sales promotion services and other services.

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Energy and solutions, which includes the sale and trading of electricity and natural gas,
the sale of energy solutions (energy and environmental management systems for
buildings, water systems, efficient lighting systems, district energy, water treatment,
industrial solutions), the sale of heating systems, natural gas distribution systems, mobility
and energy product production.
Other: mining services, maintenance services, rent from holiday accommodation.
We have also restated all the data for the 2021 comparative period and for the 2022 plan to
reflect the new reporting method.
Sales revenue
In 2022, the Petrol Group generated sales revenues in the amount of EUR 9.5 billion, which is
91 percent more than in 2021.
In 2022, the Petrol Group’s operations took place in a highly complex environment of energy
crisis and government intervention to mitigate it. During January and most of February 2022,
the Petrol Group’s operations continued to be impacted by pandemic mitigation measures.
Until 20 February 2022, access to the sales premises of service stations in Slovenia was only
allowed with a valid RVT certificate. The prices of all energy products have been rising since
the end of 2021, and at the end of February 2022, with the start of the Russian invasion of
Ukraine, the prices of all energy products rose sharply. Thus, in addition to the increased
volume of sales revenues from fuels and petroleum products and merchandise due to the
incorporation of Crodux derivati dva d.o.o. into the Petrol Group, the growth of sales revenues
compared to 2021 was also affected by the increase in the purchase and sales prices of energy
products, as well as by the regulation of fuel prices, which for a certain period of time, limited
the maximum retail and wholesale prices of the best-selling fuels - unleaded petrol NMB-95
and diesel fuel. The Petrol Group is not vertically integrated into the oil business (it does not
have its own access to crude oil and does not have its own refinery) and is therefore completely
dependent on fuel imports.
Structure of Petrol Group's sales revenues in 2022 by activities
In 2022, the Petrol Group sold 4.1 million tons of fuels and petroleum products, which was 25
percent more than in 2021. The most significant impact on the growth in the sales of fuels and
petroleum products was the incorporation of Crodux derivati dva d.o.o. into the Petrol Group.
In Slovenia, strong growth was realised in the retail sector, largely driven by the regulation of
fuel prices in Slovenia from 15 March 2022. As a result, between 15 March and 20 June 2022,

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when the maximum retail price was set by the decree, fuel prices were significantly lower than
in neighbouring countries, which led to a significant increase in sales at border stations,
especially along the border with Italy, to foreign truckers at service stations in the interior of the
country and, during the tourist season, to foreign private individuals. On the Italian market, we
gained new customers who also have storage facilities with the possibility of intra-community
deliveries, and we have been able to increase our sales to Austria. In 2022, fuel prices were
much higher than in the previous year.
In 2022, we generated EUR 520.1 million in sales revenues from the sale of merchandise and
services, which is 11 percent more than in 2021. The increase in sales revenue is mainly due
to the incorporation of Crodux derivati dva d.o.o. into the Petrol Group. At Petrol d.d., Ljubljana,
sales revenues from foodstuffs and tobacco products increased, while sales revenues from
vignettes decreased due to the transition of DARS to electronic toll collection. As we no longer
have Slovenian vignettes in stock, we now only recognise the difference between the final
sales price and the purchase price to which we are contractually entitled as sales revenue.
Sales revenues from hot beverages in Slovenia also decreased compared to the previous year.
In 2022, we also sold 18.9 TWh of natural gas, 12.0 TWh of electricity and 158.9 thousand
MWh of heat. Although this is less than in 2021, the considerable increase in the price of
energy products meant that sales revenues were higher than in 2022.
Adjusted gross profit
The adjusted gross profit for the period stood at EUR 393.4 million, which was 28 percent less
than in 2021.
The positive contribution of the incorporation of Crodux derivati dva d.o.o. into the Petrol Group
to the growth of the adjusted gross profit was largely offset by the effect of the fuel price
regulation in Croatia, as the regulated prices did not allow us to cover the operating costs for
a significant part of the year.
In several countries, national governments have intervened in the market for petroleum
products by restricting sales prices. In Slovenia, the price of extra light heating oil has been
regulated from 20 October 2021, except for the period from 22 May to 12 September 2022.
The prices of NMB-95 petrol and diesel are regulated from 15 March 2022, except for a short
period between 1 and 10 May. The price cap was in place until 20 June, and from 21 June the
decree sets the maximum margins for dealers. Fuel prices in Slovenia were therefore much
lower than in most neighbouring countries at the time of the price cap regulation, which
significantly increased sales, but the regulated selling prices were set lower than the purchase
prices, which meant that we realised a negative margin during this period. In Croatia, prices
are regulated from 7 February 2022. For the first month, the decree set the maximum sales
prices below the purchase price of the regulated fuels, and from 7 March onwards, the decree
set maximum margins that covered the purchase price but not all costs. The maximum selling
prices were also imposed in the periods from 21 June to 18 July and from 18 October to 24
October. From 12 September, the Croatian government has also regulated the price of LPG -
for propane-butane blends for large tanks and for cylinders. In Serbia, price regulation applies
from 12 February 2022. All of this contributed to a lower adjusted gross profit on sales of fuels
and petroleum products than in the same period last year.

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In Slovenia, the retail prices of diesel and petrol stood below the cost most of the time between
15 March and 20 June 20. The Petrol Group estimates that as a result of the government’s
measures on the fuel market it has suffered damage of EUR 106.9 million in Slovenia between
15 March and 20 June 2022 (a claim for compensation has been filed) and EUR 26.4 million
from 21 June onwards. The damage caused by petroleum product price regulation in Croatia
is estimated at EUR 55.9 million in 2022 (a claim for compensation has been filed).
In Slovenia, we recorded an additional shortfall of EUR 0.7 million in the adjusted gross profit
due to the regulated electricity network charges between 1 February and 30 April 2022, EUR
2.4 million because of the equalisation of household consumers of natural gas and floor
owners, and EUR 4.5 million because of the electricity price regulation decree. In Croatia, we
recorded EUR 0.6 million of economic damage due to the regulation pursuant to the decree
on the elimination of disruptions in the domestic energy market.
Regulation is also inappropriate in the field of biofuels. Pursuant to Decree on renewable
energy sources in transport, the energy share of renewables in fuels and energy sold by fuel
suppliers to end customers in the transport sector must amount to 10.1 percent in 2022 (10.3
percent in 2023). Between 21 June and 5 December 2022, the biofuel surcharge which is much
more expensive than fossil fuel was not included in the petroleum product price calculation
formula. In the time of maximum prices of biofuels, the cost of added biofuel was even higher
than the margin determined by the relevant decree. From 6 December 2022 onwards, the
biofuel surcharge is again included in the abovementioned formula, but not in an amount which
would enable covering the costs incurred by fulfilling the requirements of the Decree on
renewable energy sources in transport.
The supply of electricity to end-customers was below last year’s level due to the high increase
in purchase prices. We achieved good results in electricity trading. Sales of natural gas were
also below the previous year’s level due to the high purchase prices of this energy product. At
Geoplin d.o.o. Ljubljana alone, we realised an economic loss of EUR 140.3 million from our
business with Gazprom, namely EUR 43.2 million from the non-delivery in 2022 and the cost
of purchasing replacement natural gas, and a loss of EUR 97.1 million from the non-delivery
of fixed-price leased natural gas volumes from previous years. We increased our electricity
production from renewable energy sources.
Structure of the adjusted gross profit or loss of the Petrol Group in 2022 by activities
The Petrol Group’s operating costs totalled EUR 467.9 million in 2022, which was EUR 34.9
million or 8 percent more than in 2021.
Operating costs exceeded the realised adjusted gross profit due to high losses on the sale of
regulated energy products. The ratio of operating costs to adjusted gross profit was therefore

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118.9 percent in 2022. If the claimed compensation was received from the Republic of Slovenia
and the Republic of Croatia, the share of costs in the adjusted gross profit would be 84.1
percent.
Operating costs of the Petrol Group
The costs of materials totalled EUR 39.4 million in 2022, which was EUR 10.1 million or 35
percent more than in 2021.
Energy costs increased by EUR 8.6 million, or 40 percent, of which EUR 4.2 million was
due to higher electricity costs and EUR 3.7 million to higher gas costs. Energy costs for
heating increased by EUR 0.8 million compared to the previous year, while fuel costs for
engines increased by EUR 0.7 million. Of this, costs increased by EUR 2.2 million due to
the incorporation of Crodux derivati dva d.o.o. into the Petrol Group.
Costs of consumables increased by EUR 1.3 million or 18 percent. Among them, the costs
of materials for maintenance, cleaning supplies and personal protective equipment and the
cost of water consumed, increased the most, both due to the incorporation of Crodux
derivati dva d.o.o. into the Petrol Group.
The costs of services in 2022 totalled EUR 180.1 million and were up EUR 32.4 million or 22
percent from 2021.
The most significant item in the costs of services were the costs of transport services, which
stood at EUR 45.5 million and increased by EUR 12.3 million or 37 percent compared to
the previous year. Of this, costs increased by EUR 3.2 million due to the incorporation of
Crodux derivati dva d.o.o. into the Petrol Group. Parent company costs increased by EUR
9.0 million due to both higher fuel sales (sales of fuels and petroleum products at service
stations in Slovenia were 21 percent higher in 2022) and an increase in transport tariffs as
a result of the rising fuel prices.
The costs incurred by the service station operators amounted to EUR 32.6 million, up EUR
1.8 million or 6 percent compared to the previous year, of which EUR 1.2 million was due
to an increase in student work due to a shortage of service station staff and to the use of
students at the beginning of the year to check compliance with the RTV condition when
entering service stations.
The costs of fixed asset maintenance services amounted to EUR 28.7 million, an increase
of EUR 3.8 million or 15 percent compared to the previous year, of which EUR 1.9 million
was due to the incorporation of Crodux derivati dva d.o.o. into the Petrol Group. Most of
the other companies in the Petrol Group saw increases in the maintenance of plant and
equipment (totalling EUR 1.4 million), utilities and waste disposal (totalling EUR 0.4 million)
and cleaning costs (totalling EUR 0.3 million).
The Petrol Group
(in EUR)
2022 2021
Index
2022/2021
Cost of materials 39,423,844 29,296,024 135
Cost of services 180,137,325 147,697,919 122
Labour costs 135,562,309 114,341,509 119
Depreciation and amortisation 96,300,070 79,091,758 122
Other costs 16,476,159 62,612,453 26
- of which net allowances for operating receivables 7,930,749 7,914,095 100
Operating costs 467,899,707 433,039,663 108

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The costs of payment transactions and bank services amounted to EUR 16.0 million, which
was EUR 3.1 million or 24 percent more than in the previous year, of which EUR 1.7 million
was in the Petrol Croatia Group, both due to the incorporation of Crodux derivati dva d.o.o.
into the Petrol Group and due to the increase in fuel prices. The remaining increase in
costs was due to higher sales at service stations in Slovenia and higher fuel prices
compared to the previous year.
The cost of intellectual services in 2022 totalled EUR 11.9 million and were up EUR 2.5
million, or 26 percent, compared to the previous year, of which EUR 1.0 million is due to
higher student labour costs as a result of the aforementioned replacement of staff by
students and the RVT compliance check at the beginning of the year. Consultancy and
lawyer’s fees increased by EUR 1.0 million and copyright and electronic media costs by
EUR 0.3 million
Short-term rental costs amounted to EUR 9.6 million, an increase of EUR 1.1 million or 13
percent compared to 2021, including an increase of EUR 2.0 million in software rental costs
and an increase of EUR 1.0 million in motorway operating charges. In the Petrol Croatia
Group, rental expenses decreased by EUR 1.5 million, mainly due to the cancellation of
the lease of the Omišalj warehouse and the transfer of the lease rent of the Zadar
warehouse to the depreciation of long-term leased assets in accordance with IFRS 16.
Amounting to EUR 7.7 million, the costs of fairs, advertising and entertainment increased
by EUR 1.0 million or 15 percent compared to the previous year.
The costs of insurance premiums totalled EUR 6.9 million and were up EUR 2.0 million or
42 percent from 2021, due to both the rising prices on the insurance market and the higher
volume of claims.
Outsourcing costs stood at EUR 5.3 million and were up EUR 1.3 million or 31 percent
relative to 2021, due to higher business volumes in the Home Energy Solutions segment.
The costs of environmental protection services in 2022 totalled EUR 2.5 million and were
up EUR 0.4 million or 19 percent from 2021, mainly due to the incorporation of Crodux
derivati dva d.o.o. into the Petrol Group.
Security costs in 2022 totalled EUR 2.3 million, which is in line with the previous year’s
realised costs.
Costs of membership fees totalled EUR 1.6 million in 2022 and were up EUR 0.8 million or
89 percent compared to the previous year, mostly due to the incorporation of Crodux
derivati dva d.o.o. into the Petrol Group.
Property management costs totalled EUR 1.6 million and were up EUR 0.4 million or 33
percent compared to the previous year, mainly due to higher business volumes in the
Energy Solutions segment.
Employee reimbursements, which include training costs and subsistence costs, mileage,
accommodation and tolls on business trips, totalled 1.5 million and were up EUR 0.5 million
or 51 percent compared to 2021. In particular, training costs increased, as did mileage and
daily subsistence allowances, due to both higher fuel prices and a higher volume of
business trips compared to 2021, when movement restrictions were in place due to the
COVID-19 pandemic.
Other service costs amounted to EUR 6.4 million and were up EUR 1.4 million or 27 percent
compared to the previous year, mainly due to higher sales intermediation costs.
Labour costs totalled EUR 135.6 million and were up 19 percent or EUR 21.2 million
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increased costs by EUR 13.3 million. In Petrol d.o.o. Zagreb, costs increased by EUR 1.2
million, mainly due to salary increases for service station employees. In the parent company,
costs increased by EUR 3.8 million, of which EUR 1.0 million was due to an increase in the
number of employees (Energy & Solutions, Logistics), EUR 0.6 million due to the statutory
harmonisation of salaries and the increase in the minimum wage. In areas where we are
constantly faced with staff shortages, notably service stations, salary increases led to an
increase in costs of EUR 1.1 million. In line with the actuarial calculation, reimbursements for
severance payments, jubilee bonuses and unused leave were up EUR 1.1 million. Costs for
pay for annual leave were EUR 1.1 million higher than the year before, while accrued gratuities
were EUR 1.1 million lower. The increase in business volumes also led to an increase in costs
at Petrol d.o.o. Belgrade, Petrol BH Oil Company d.o.o. and Atet d.o.o. 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 28 thousand, while in 2021
this amount amounted to EUR 0.6 million these effects are recorded as a decrease in labour
costs.
The depreciation and amortisation charge stood at EUR 96.3 million, an increase of 22
percent or EUR 17.2 million relative to 2021. Costs increased by EUR 14.6 million due to the
incorporation of Crodux derivati dva d.o.o. into the Petrol Group, while costs increased by EUR
3.2 million at Vjetroelektrana Ljubač, which started operations in mid-2021. However, as a
result of the liquidity constraints caused by the price regulation of energy products and the
consequent reduction in capital expenditure, the parent company’s depreciation charges have
decreased.
Other costs stood at EUR 16.5 million, which was EUR 46.1 million less than in 2021.
Compared to the previous year, other costs decreased by EUR 20.8 million, especially
because of the lower accrued costs, and costs related to asset impairments and write-offs
decreased by EUR 8.1 million. Costs are EUR 18.2 million lower year-on-year because of the
reversal of other provisions and liabilities in 2022; provisions and liabilities were not reversed
in 2021.
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 the non-fulfilment of concluded agreements 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 agreements 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. Gain on derivatives
totalled EUR 523.1 million or EUR 253.2 million more than in 2021. Loss on derivatives totalled
EUR 558.7 million or EUR 323.0 million more than in 2021.

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Other revenue stood at EUR 102.4 million, which was EUR 95.0 million more than in 2021.
Of this, EUR 88.6 million refers to the revaluation of liabilities to Gazprom to the fair value
based on valuation provided by an independent valuer. Other expenses stood at EUR 0.3
million, which was EUR 0.6 million less than in 2021.
EBITDA of the Petrol Group broken down by activity
The EBITDA for 2022 totalled EUR 96.3 million, a decrease of EUR 141.8 million from 2021.
Structure of the EBITDA of the Petrol Group in 2022 by activities
EBITDA in 2022 compared to 2021
The company’s net profit totalled EUR -7.9 million, a decrease of EUR 159.0 million from
2021.
Shares of investment income valued according to the equity method amounted to EUR 3.3
million, which is EUR 0.7 million or 29 percent more than in 2021.
The net finance expenses of the Petrol Group stood at EUR 5.2 million in 2022, which was
EUR 3.0 million more than the year before. In 2022, the net loss on exchange rate differences
were down EUR 4.1 million compared to the same period in 2021, net revenues from derivative

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financial instruments were EUR 0.6 million higher than in 2021 and net interest expenses EUR
10.0 million higher (interest expenses were up by EUR 5.2 million due to higher borrowing and
interest income was down by EUR 4.7 million because a one-off interest income of EUR 6.9
million was recognised at a subsidiary in 2021 as a result of categorising certain sales
transactions as financing transactions). In 2022, reversal of allowance for financial receivables
was EUR 0.3 million higher than in 2021. No impairment of investments and goodwill was
recorded in 2022, while in 2021 it amounted to EUR 0.9 million. Other net finance income was
EUR 1.1 million higher than in 2021.
The Profit before tax in 2022 totalled EUR -9.8 million, down EUR 161.3 million compared to
the previous year. Net profit for 2022 totalled EUR -2.7 million, a decrease of EUR 127.2
million from 2021.
Impact of government grants on labour costs, EBITDA and pre-tax profit
10.3 Financial position of the Petrol Group
The balance sheet total of the Petrol Group as at 31 December 2022 amounted to EUR 2.7
billion, which is 14 percent more than at the end of 2021. Non-current assets amounted to EUR
1.3 billion, the same as at the end of 2021, and current assets amounted to EUR 1.4 billion,
which is 31 percent more than at the end of 2021. Compared to the end of 2021, current
operating receivables increased by EUR 195.1 million. The growth of balance sheet items was
mainly influenced by the rise in prices of energy products.
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 13.8 million lower than at the end of 2021. Right-of-use assets totalled EUR 131.6
million at the end of 2022, which was 8 percent more than at the end of 2021. Non-current
investments in jointly controlled entities and associates stood at EUR 58.2 million, which was
EUR 2.4 million more than in 2021.
The management of current assets, which accounted for 51 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 2021, the balance of operating receivables
as at the last day of 2022 increased by 30 percent.
The Petrol Group
(EUR million)
2022 2021
2022/2021
Index
Adjusted gross profit 393.4 543.4 72
Labour costs, including government grants 135.6 114.3 119
Labour costs, excluding government grants 135.6 115.0 118
EBITDA, including government grants 96.3 238.1 40
EBITDA, excluding government grants 96.3 237.5 41
Pre-tax profit, including government grants -9.8 151.4 -
Pre-tax profit, excluding government grants -9.8 150.8 -

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The value of inventories increased by 47 percent year-on-year. Oil prices were higher at the
end of 2022 than at the end of 2021.
In response to the steep growth of electricity and oil prices, the short-term operating liabilities
increased by 57 percent year-on-year.
In the area of credit risk management, we closely follow all the procedures of credit insurance
companies. The Petrol Group has secured 79 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 18.1 million in working capital or
EUR 110.1 million less than at the end of 2021 when it stood at EUR 128.2 million.
Cash flows generated from operations amounted to EUR 203.1 million in 2022, which is EUR
26.1 million more than in 2021. The Petrol Group used its own revenues for investment
activities, the payment of dividends and the repayment of loans while missing funds were
secured from banks. The net financial liabilities to equity ratio (net debt/equity ratio) was 0.6
as at the last day of 2022, and it also stood at 0.6 at the end of 2021. The net debt/EBITDA
ratio stood at 5.4 at the end of 2022 compared to 2.1 at the end of 2021. The financial
leverage ratio stood at 37 percent at the end of 2022, up from 36 percent at the end of 2021.
Due to the consequences of the energy crisis, we set a high priority in 2022 to ensuring an
adequate liquidity structure. When determining the needs for additional potential debt, we took
into account the appropriate net debt to EBITDA ratio.
Equity, net debt and financial leverage ratio
We have also had to adapt our investment funds to the changed operating environment. The
Petrol Group’s net investments in property, plant and equipment, intangible fixed asset and

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long-term investments of the Petrol Group totalled EUR 59.8 million in 2022, of which 48
percent was in energy transition. In 2021, we allocated EUR 233.2 million for investments.
Before the onset of the energy crisis and the resulting price regulation, the Petrol Group was
in very good business and financial shape. Despite the challenging circumstances of the
energy crisis and energy transition, as well as government regulatory interventions and
uncertainty regarding the compensation for damage we successfully and professionally
managed business and liquidity risks, implemented key development projects, minimised the
impact of negative energy market developments to the maximum extent possible through a
comprehensive energy offering and effective adaptation to the tight business environment,
ensured a stable and reliable supply of fuels and energy products through an efficient
procurement process, and provided comprehensive support to our customers. We stayed
committed to our strategic guidance in the field of debt and kept the net debt at approximately
the same level as at the end of 2021. The results of events in the wider business and social
environment in the EU and uncertainty on energy markets from the past year are reflected in
the Petrol Group’s operations, as seen in the deteriorated indicators compared to 2021.
Nevertheless, all key indicators of the Petrol Group have remained at acceptable levels,
providing the Group with financially sustainable bases for future operations.
The national approaches taken by the Republic of Slovenia and the Republic of Croatia to
mitigate the effects of the energy crisis on citizens by capping fuel prices have affected the net
debt-to-EBITDA ratio. The Petrol Group obtained consent from banks that the ratio can deviate
from the agreed contractual values in 2022, which shows bankstrust in the Group’s operations
in the future.
We expect 2023 to be as challenging as 2022. Despite the difficult business conditions, we will
continue to pursue our 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 energy crisis, Petrol d.d., Ljubljana paid out the dividend in 2022, amounting to
EUR 30.00 gross per share, which is 36 percent more than in 2020 and 2021 when it amounted
to EUR 22.00 per share.
On 20 July 2022, S&P Global Ratings announced on the Bloomberg website that Petrol d.d.,
Ljubljana, has been placed on »CreditWatch Negative« with respect to its long-term rating of
»BBB-« and short-term rating of »A-3« due to the impact of the negative intervention in the
motor fuel market, where sellers were forced to sell motor fuels below cost due to price
regulation, uncertainties regarding the recovery of damages, and the risks associated with
potential additional interventions in the energy markets.
S&P Global Ratings reaffirmed Petrol d.d., Ljubljana’s »BBB-« long-term rating, its »A-3«
short-term credit rating and its »stable« credit rating outlook on 12 December 2022.
With this, S&P Global Ratings has removed Petrol d.d., Ljubljana, with a long-term rating of
»BBB-« and a short-term rating of »A-3«, from the »CreditWatch Negative« list, where it was
placed on 20 July 2022.

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HIGHLIGHTS:
High energy product prices and rising inflation have led to the price regulation of fuel and
other energy products in the markets in which we operate.
Sales revenue reached a record EUR 9.5 billion, up 91 percent year-on-year, but due to
the regulated prices of fuel and other energy commodities, this was not reflected in a higher
EBITDA. Compared to 2021, EBITDA decreased by EUR 141.8 million.
S&P Global Ratings has reaffirmed Petrol d.d., Ljubljana’s »BBB-« long-term rating, »A-3«
short-term rating and its »stable« credit rating outlook.

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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 + Net Allowances for operating
receivables + Depreciation and amortisation charge.
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
Operating costs = Costs of materials + Costs of services +
Labour costs + Depreciation and amortisation + Other
costs
The criterion is important in terms of the cost-
effectiveness of operations.
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 EUR 25.4 million in 2022 and EUR
25.2 million in 2021.
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.
Net investments
Net investments = Investments in fixed assets (EUR 72.1
million in 2022) + Non-current investments (EUR 5.7 million
in 2022) – Disposal of fixed assets and reimbursements
(EUR 18.0 million in 2022).
The information about investments reflects the
direction of the Petrol Group's development.
Book value per share
Book value per share = equity/total number of issued
shares
Book value per share reflects the value of a
public limited company's total equity per share.

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12. Events after the end of the accounting period
On 2 January 2023, the Government of the Republic of Croatia adopted the Decree on setting
maximum retail prices, determining the maximum margins for petrol (eurosuper 95) at EUR
0.0995 per litre, eurodiesel at EUR 0.0995 per litre, blue diesel at EUR 0.0531 per litre,
propane-butane blend for large gas storage tanks at EUR 0.3716 per kg and LPG cylinders
(7.5 kg or more) at EUR 0.8229 per kg. The Decree was in force from 3 January 2023. Croatia
extended the validity of the Decree every two weeks, but it did not limit the validity date of the
Decree of 27 February 2023.
On 13 January 2023, the Government of the Republic of Slovenia adopted the Decree on
determining compensation for natural gas suppliers. For supplies regulated by the decrees,
suppliers are entitled to a monthly compensation for the difference between the average
monthly purchase cost and the regulated retail price, taking into account the supplier’s cost of
EUR 5 per MWh.
On 13 January 2023, the Government of the Republic of Slovenia adopted the Decree on the
determination of electricity prices. For supplies regulated by the decrees, suppliers are entitled
to a monthly compensation for the difference between the average monthly purchase cost and
the regulated retail price, taking into account the supplier’s cost of EUR 10 per MWh.
On 23 January 2023, the 36
th
General Meeting of Petrol was held, at which the shareholders
considered the proposal to recall Aleksander Zupančič from the Supervisory Board. The
motion for a resolution was not put to the vote. At the General Meeting, the shareholders were
also presented with the Report of the Management Board of Petrol d.d., Ljubljana, on the
operations of the subsidiary Geoplin d.o.o. Ljubljana in 2022 and the assessment of the
operations of the subsidiary Geoplin d.o.o. Ljubljana in 2023, as well as the Report of the
Supervisory Board and Management Board of Petrol d.d., Ljubljana, on the measures taken to
obtain compensation for the damage caused by the regulated energy product prices in 2022,
on the assessment of the operations of Petrol/Petrol Group in 2023, and on measures for the
possible business restructuring of Petrol/Petrol Group as a result of the regulation of energy
product prices in 2023.
On 24 January 2023, the Government of the Republic of Slovenia adopted the Decree on
setting district heating price, determining the maximum tariff item for the variable part of the
price of heat at EUR 98.70 per MWh for households which accept heat from the distribution
system where the distributor carries out the public service, namely via the individual or common
offtake point. The distributors whose pricelists for January 2023 include the tariff item for the
variable part of the heat price that is below the indicated amount, cannot increase such price.
The Decree applies to the heat supplied in the period from 1 January 2023 to 30 April 2023.
In Slovenia, the Decree amending the Decree on setting gas prices from the system was
adopted on 27 January 2023 and entered into effect on 28 January 2023. It sets the maximum
permitted retail price of natural gas needed for the production of heat for basic social services,
kindergartens, primary schools and health centres at EUR 0.079 per kWh and applies to
natural gas supplied in the period from 1 January 2023 to 31 August 2023.

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The Government of the Republic of Serbia adopted the Decree on the price capping of
petroleum products on 24 February 2023, setting the maximum retail price, including VAT, for
eurodiesel and unleaded petrol NMB-95. The price is set in the amount of the average
wholesale price of petroleum products in Serbia, increased by RSD 13 per litre (EUR 0.11 per
litre). The Decree is in effect until 31 March 2023.

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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 that together will
contribute to a successful energy transition. There is increasing awareness of sustainable
development, accompanied by tightening regulations. In trading, we are seeing a notable
change 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 a
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 but also new 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 2022
In the last quarter of 2022, the Croatian company Crodux derivati dva d.o.o. was merged into
Petrol d.o.o., resulting, among other things, in consolidation and more efficient operational and
control procedures. This was also ensured in the subsidiary E 3, d.o.o. by switching to the
internal SAP information system. In particular, preparations for Croatia’s transition to the euro
have progressed in the last quarter of the year, and a considerable amount of activity has been
devoted to these processes.
In 2022, we saw a continuation of the extraordinary rise in the prices of all energy products,
which had a major impact on the whole of Europe and on the Petrol Group’s operations.
National governments have responded to the situation with various decrees and energy
product price regulations. The Petrol Group was mainly affected by changes and restrictions
in the pricing of petroleum products in the markets of Slovenia, Croatia and Serbia (retail and
wholesale), as well as by regulated prices of electricity and natural gas. The details of the
decrees by country are described in the section Analysis of the business performance of the
Petrol Group’s operations in 2022 and in the subsection Business environment.
In 2022, the actions already taken in 2020 to manage the risks associated with the COVID-19
pandemic were continued, focusing on controlling and mitigating the negative effects of the
pandemic. Measures continued to ensure the health and safety of employees and customers,
and the uninterrupted supply of services to the economy. Additional focus remained on credit
risk management, due to the expected increase in default risks from our customers at the level
of the entire Petrol Group. 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 2022.
Cyberattack is the battlefield of the future, which can be evidenced by the significantly
increased cyber risks in the last period. The Petrol Group must endeavour to step up its cyber

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resilience today to be ready for cyber threats in the future. More about cyber risks is presented
in chapter 18.3 Information security put to the test.
The last risk assessment of the Petrol Group was carried out in 2021. According to the last risk
assessment results, financial risks, especially credit, price, volumetric and foreign exchange
risks remain among the most important and most probable risks. In 2022, several activities
were carried out in this area. The result is the 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 securities we hold. As of 31
December 2022, 79 percent of Petrol’s trade receivables individually exceeding EUR 100,000
were secured through insurance policies, bank guarantees and other appropriate insurance
instruments. As mentioned above, two more subsidiaries migrated to the Petrol Group’s
information system in 2022, resulting in increased operational efficiency and control
procedures through a unified information system.
The Credit Committee continued to actively pursue its mandate. A great deal of attention was
paid to receivables management, realising that our partners, just like us, will face the financial
consequences of high prices for all energy products, increased inflation and a tight
macroeconomic environment, as well as the COVID-19 pandemic.
The liquidity of 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 S&P Global Ratings. In 2022, 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 despite the tight operating conditions. This continues to provide us
with better access to financial resources and, at the same time, a stable financial position. In
2022 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 2022, a lot of attention was paid to credit,
price and volumetric risks. Most attention was paid to the sale of electricity and natural gas
to end-customers, where we completely overhauled the system of monitoring volumetric and
price risks beyond quantity limits (by individual segments) and setting the required mark-ups
for the assumed risks. Monitoring volumetric and price risks through quantity limits was also
introduced in electricity production from own sources. In the area of electricity trading, the
monitoring of credit risks has been even more detailed than in previous years due to the high
price growth and increased volatility.
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.
In addition to the main financial risks, the most relevant risks include economic
environmental risks, business decision-making risks, financial environmental 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.
13.2 Strategic outline for risk management at the Petrol Group
In risk management, the Petrol Group pursues the 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. This allows further stable business growth and the dynamic development of new
business models. We tread carefully, however, when taking on risks arising from:
expansion to new activities and markets in line with the strategic outline; and
operations related to existing activities.
But we are not willing to take on the following risks:
environmental risks;
risks affecting the safety and health of our staff;
reputational risks;
risks of fraud and corruption;
risk of losing our »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:
The Petrol Group shall monitor changes in the industry and markets in which it operates,
and proactively adapt its operations and targets in order to achieve its strategic objectives.
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.
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.
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.
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.
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.

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The Petrol Group shall make sure that its partner portfolio is 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.
The Petrol Group shall provide for long-term financial stability through sustainable financial
leverage.
The Petrol Group shall manage its short-term liquidity by matching inflows and outflows
and by maintaining adequate credit lines.
The Petrol Group shall make every effort to hedge its interest rate risk.
13.3 Petrol’s risk model with the most relevant and probable risks
Petrol’s risk model consists of an integrated set of 20 risk categories divided into two major
groups: environmental 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: 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 Petrol Group uses such a system that
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 environmental
risks, business decision-making risks, financial environmental 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.
Distribution of the Petrol Group’s 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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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 1,000,000;
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
In 2022, individual risk categories were managed as follows:
I. ENVIRONMENTAL RISKS
The Petrol Group protects itself against external environmental 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 environmental
risks are economic environmental risks. Although relevant, disaster risks, which also belong
in this group, occur infrequently. Financial environmental 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 environmental 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 environmental risks through financial planning and
simulations, as well as through cooperation with the financial environment (banks, financial
institutions and investors). These risks are taken into account when preparing a strategic
business plan and are discussed at the Balance Sheet Management Board.

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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. In 2022, energy product price regulations in
various countries in response to the energy crisis had a key impact on the Petrol Group’s
negative performance.
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 a lack of responsiveness to changes in
the Company’s internal/external 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
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 (Enterprise Resource Planning) system and the deployment of a new CRM
(Customer Relationship Management) system, which was implemented in 2019 in the parent
company, in 2020 in a subsidiary in Croatia, while other companies in the group transitioned
to the new system in 2021 and 2022, as scheduled.
Human resources management and leadership risks are controlled through the regular
measurement of the 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.

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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 drawn up actions for the containment of fraud.
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 financial risks were credit, price and volumetric risks, as well as foreign
exchange risks, while liquidity and interest rate risks were assessed as less significant. The
tight economic environment, high energy price hikes and the consequent regulation of energy
prices and higher interest rates have had an impact on the Company’s liquidity. Detailed
information about exposure to individual types of financial risk and disclosures about financial

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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
greatest 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. The war in Ukraine
has brought uncertainty and some challenges to the supply of petroleum products. Despite the
tightening situation, the supply of petroleum products has been secured, though some
uncertainty about market developments remains with the full implementation of the diesel
sanctions starting in February 2023. As a result, we have already secured, at an annual level,
goods with an origin in line with the sanctions adopted for 2023, before the sanctions come
into force.
Trading in electricity exposes the Group to price and volumetric risks. In the period from the
beginning of 2022 until 26 August 2022, prices for electricity supplied in Hungary in 2023 have
been increasing. On 26 August 2022, the price peaked at EUR 1,007 per MWh and then
gradually decreased until the end of 2022. On 28 December 2022 (the last day of quotation of
the annual price for 2023 delivery in Hungary on the EEX), the price was EUR 259.85 per
MWh, up 104 percent compared to the beginning of the year when the price was EUR 127.18
per MWh. The main reason for the high rise in electricity prices is the high rise in natural gas
prices as a result of the closure of nuclear power plants in Germany and the war in Ukraine.
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 Petrol 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
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.

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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, in these
demanding times, 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 and 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 the market conditions evolve. A great deal of work is put into the management of receivables
from all customers in Slovenia, and significant attention is also devoted to the collection of
receivables in the 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, and high energy prices have also been an additional challenge in recent months. In 2022,
the Petrol Group continued to closely monitor indicators of increased risk and had intensive
communication with its customers. At the operational level, all the 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. Given the
sharp increase in energy prices, we expect credit risks to increase over the next few years.
This is particularly true for partners in the electricity and natural gas segments, where the
forward price for 2023, as at 28 December 2022, is up year-on-year by 107 percent (electricity)
and 187 percent (natural gas) - this compares to a 47 percent factor for the forward price of
diesel next month. In order to limit both credit and price risks, an electricity and natural gas
sales policy has recently been adopted that provides for a more rigorous way of entering into
transactions in 2023. In addition, a methodology is being developed to systematically address
the higher risks assumed through a higher contractual margin (risk/reward aspect).
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. 72 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 92 percent).
In the field of credit risk management, we strictly comply with all official procedures of credit
insurers. 79 percent of the Petrol Group’s receivables that individually exceed the nominal
value of EUR 100,000 are insured. Payments made by buyers are monitored on a daily basis
and measures are taken to decrease credit risk, if necessary. Despite the negative effects on
the economy, the payment discipline has not deteriorated significantly thus far.

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Liquidity risks
Petrol’s strong position is confirmed by its long-term »BBB-« credit rating, which was
reaffirmed by S&P Global Ratings in December 2022. This »investment grade« rating enables
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 Global Ratings methodology in the management of
liquidity risks. On 20 July 2022, S&P Global Ratings announced on the Bloomberg website
that Petrol d.d., Ljubljana, has been placed on »CreditWatch Negative« with respect to its long-
term rating of »BBB-« and short-term rating of »A-3« due to the impact of the negative
intervention in the motor fuel market, where sellers were forced to sell motor fuels below cost
due to price regulation, uncertainties regarding the recovery of damages, and the risks
associated with potential additional interventions in the energy markets. Despite the tight
operating conditions, S&P Global Ratings has reaffirmed Petrol d.d., Ljubljana’s »BBB-« long-
term rating, its »A-3« short-term credit rating and its »stable« credit rating outlook in
December 2022.
In 2022, the average petroleum and energy product prices were significantly higher year-on-
year, meaning that more working capital of the Petrol Group was needed. Despite the high
volatility of energy prices and regulations by the countries where the Petrol Group operates,
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. In
order to ensure the Group’s stable liquidity position, in the second half of 2022, we started
activities to obtain additional credit lines to further strengthen the Group’s stable and solid
liquidity position, which, in the event of a deterioration in the economic situation, will ensure
smooth operations and an adequate liquidity structure according to the criteria of S&P Global
Ratings.
The current business and wider societal environment in the EU and globally is strongly
influenced by the war in Ukraine, the resulting tightening of the energy market (high prices and
the uncertain supply of fuels and energy products), diverging national approaches to regulating
fuel prices to mitigate the impact of the energy crisis on people and businesses, and high
inflation. Therefore, we continue to intensify our activities and pay more attention and care to
the management of the Petrol Group’s cash flows, especially in the area of deferred inflow
planning, which represents an important source of liquidity risk and, consequently, credit risk.
We continue to pay additional attention to internal liquidity management within the Petrol Group
companies.
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
Interest rate risk is the risk of a negative impact of changes in market interest rates on the
Petrol Group’s operations. The Petrol Group’s exposure to interest rate risk arises from a
potential change in the EURIBOR reference rate. 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 the EURIBOR. The average value of the
EURIBOR in 2022 was higher than the value at the end of 2021.

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The Petrol Group also manages interest rate risk by entering into traditional derivative financial
instruments (interest rate swaps and forward interest rate agreements). The Petrol Group has
derivative financial instruments for all entered into and drawn down long-term loans with
variable interest rates, thus hedging the interest rate position. We did not take out any new
interest rate insurance in 2022.
The risk of changes in interest rates on short-term funding sources is managed within the
framework of the Petrol Group’s liquidity risks and policies.
HIGHLIGHTS:
According to the last risk assessment results, financial risks, especially credit, price,
volumetric and foreign exchange risks remain among the most important.
2022 was marked by various regulatory actions by countries in the markets where we
operate, which had a significant negative impact on the Petrol Group’s operations.
Despite the high market prices and regulated selling prices for energy products, we have
managed to maintain a strong liquidity position, which is also reflected in keeping our
long-term »investment grade« rating by S&P Global Ratings.
Both the age structure of receivables and the collateralisation of receivables remain at
satisfactory levels.
Risk management is included in all aspects of the Petrol Group’s operations.
We pursue the strategic direction of ensuring stable business growth while accepting
moderate risks.

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14. Operations by product groups
14.1 Fuels and petroleum products
In 2022, the Petrol Group generated sales revenues of EUR 4,375.2 million from the fuels and
petroleum products product group, a year-on-year increase of 102 percent, as a result of the
more volumes sold and the higher prices of fuels.
In 2022, the price regulation of certain petroleum products introduced by countries in response
to the high energy product prices and rising inflation was the most significant factor affecting
the Petrol Group’s operations in the field of petroleum product sales. While low fuel prices had
a positive impact on the fuel sale volumes, especially in the Slovenian market, the maximum
selling price was set below the purchase price of energy products for part of the regulated
period.
On the Slovenian market, we sold 1,754.2 thousand tons of fuels and petroleum products in
2022, 21 percent more than in 2021 and 22 percent more than planned. We achieved good
sales results in Slovenia, particularly in the sale of motor fuels. Between 15 March and 20 June
2022, when the maximum retail price was set by the decree, fuel prices were significantly lower
than in neighbouring countries, which led to a significant increase in sales at border stations,
especially along the border with Italy, to foreign truckers at service stations in the interior of the
country and, during the tourist season, to foreign private individuals.
In the markets of SE Europe, we sold 1,480.2 thousand tons of fuels and petroleum products
in 2022, 26 percent more than in 2021, mainly due to the incorporation of Crodux derivati dva
d.o.o. into the Petrol Group.
In the EU markets, we sold 860.7 thousand tons of fuels and petroleum products in 2022, 30
percent more than in 2021 and 28 percent more than planned, mainly due to the resumption
of motor fuel sales in Italy and higher sales of middle distillates to the Austrian market.
Including the sales of Crodux derivati dva d.o.o., which was merged into the Petrol Group in
September 2021, sales growth in the Slovenian market was almost as high as sales growth in
the markets of SE Europe, resulting in no significant change in the sales structure by market
compared to the previous year. Thus, in 2022, 43 percent of our fuels and petroleum products
sales were generated in Slovenia, 36 percent in the markets of SE Europe, and 21 percent in
the EU markets.
Of the 4,095.2 thousand tons of fuels and petroleum products sold, 45 percent were sold at
retail and 55 percent at wholesale. Retail sales increased by 29 percent compared to 2021
and by 6 percent compared to the plan. The growth was mainly driven by the incorporation of
Crodux derivati dva d.o.o. into the Petrol Group and, on the Slovenian market, by the regulation
of fuel prices, as the regulated maximum selling prices of fuels in Slovenia were significantly
lower than in neighbouring countries Wholesale sales increased by 21 percent compared to
2021 and by 12 percent compared to the plan, mainly due to the incorporation of Crodux
derivati dva d.o.o. into the Petrol Group, higher sales to EU markets and also due to the growth
in wholesale sales in Slovenia.

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The Petrol Group's fuels and petroleum products sales in the 2019 2022 period
Service station network of the Petrol Group
At the end of June 2022, the Petrol Group managed 594 service stations, of which 318 were
in Slovenia, 202 in Croatia, 42 in Bosnia and Herzegovina, 17 in Serbia and 15 in Montenegro.
Service station network of the Petrol Group in the 2019 2022 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 a particular emphasis on motorway locations
and key urban and border locations. Petrol’s main competitor is the company OMV Slovenia,
which has a 20 percent market share in terms of the number of service stations. MOL has a 9
percent market share in Slovenia.

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With the merger of Crodux derivati dva d.o.o. in 2021, we consolidated the brand’s presence
and position in the Croatian market. Our market share in terms of the number of service
stations was 23 percent at the end of 2022. INA remains our biggest competitor, followed by
other companies such as Lukoil, Tifon and some smaller companies. In Bosnia and
Herzegovina, Petrol has an almost a 4 percent market share in terms of the number of service
stations. Its major retail competitors include Nestro Petrol, Energopetrol, the Nešković Group,
Ina and Hifa Petrol. In Serbia, the companies NIS, Lukoil, Knez Petrol and Mol have the largest
retail networks. In Montenegro, Petrol has 12 percent of the market in terms of the number of
service stations, its major competitors being Eko and Ina.
Among the fuels and petroleum products, LPG sales are becoming increasingly important for
the Petrol Group, seeing that regional infrastructure, which is a basis for establishing a
presence in the wider SE Europe region, is now being built. The Petrol Group is engaged in
both LPG supply and 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 Slovenia, the Petrol Group operated five LPG supply concessions in 2022.
In Croatia, Petrol d.o.o., concluded agreements for the supply of LPG in the cities of Šibenik
and Rijeka. Liquefied petroleum gas is also supplied to customers 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 2022, we further expanded our
business through our own retail network and through wholesale operations.
In Serbia, Petrol LPG d.o.o. Beograd continued to expand in the region by exporting LPG
to North 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. In the Serbian market, we are temporarily unable to use the Smederevo
terminal in a way that would allow us to deliver gas by barge, which we own but have
leased until we obtain a concession to carry out port activities. Until then, gas will be
delivered to the terminal by rail tankers and road tankers.
In 2022, Autogas will be sold at 302 service stations in the Petrol Group’s distribution
network, and at wholesale outlets.
Sales to business customers and the public sector
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.
We accept the results of measuring the satisfaction of our customers. We take them as an
opportunity for improvement in the direction of providing an excellent user experience.
Efficient supply chains
Efficient supply chains are an important competitive advantage of the Petrol Group. Their
optimal management is therefore one of the key factors for the Petrol Group’s successful
operation. Despite the exacerbated market situation in 2022 we ensured smooth supply and
sales of fuels and petroleum products via all sales channels to all markets where the Petrol

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Group is present by having ensured that all purchased petroleum products are compliant with
the effective European standards and decrees.
HIGHLIGHTS:
On the Slovenian market, we sold 1,754.2 thousand tons of fuels and petroleum products
in 2022, 21 percent more than in 2021 and 22 percent more than planned.
At the end of June 2022, the Petrol Group managed 594 service stations, of which 318
were in Slovenia, 202 in Croatia, 42 in Bosnia and Herzegovina, 17 in Serbia and 15 in
Montenegro.
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 in 2021 in terms of the number of service
stations, thus consolidating the brand’s presence and position in this market.
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.
LPG sales are becoming increasingly important for the Petrol Group, seeing that
infrastructure is being built in the wider region of SE Europe - Activities have been
particularly strong in Northern Macedonia, where we have a strategic initiative to build an
LPG storage facility and increase the wholesale of LPG.
At the end of 2022, the Petrol Group operated five LPG supply concessions in Slovenia.
We thus also supply LPG to our customers through gas storage facilities and autogas at
service stations.
14.2 Merchandise and services
In 2022, the Petrol Group generated EUR 520.1 million in sales revenues from the sale of
merchandise and services, which is 11 percent more than in 2021 and 1 percent less than
planned.
In the Slovenian market in 2022, we generated EUR 362.2 million in sales revenues from the
sale of merchandise and services, which is 7 percent less than in 2021. The main impact on
the decrease in sales revenue from the sale of commercial goods and services was the
transition of DARS to electronic tolling - As we no longer have Slovenian vignettes in stock, we
now only recognise the difference between the final sales price and the purchase price to which
we are contractually entitled as sales revenue. Sales of hot beverages and of haberdashery
and appliances were lower, especially in the first months of the year, compared to the same
period last year, when sales were significantly higher due to the restrictive measures in other
activities. The strong sales performance was mainly driven by tobacco sales. In the service
sector, car wash operations and entrances to sanitary facilities in Slovenia were the main areas
of improvement on the previous year’s performance. We installed Lottery Slovenia’s digital
displays in more than 150 points of sale in Slovenia. The range of products offered at Petrol
points of sale is changing and being updated as we strive to keep up with the needs of service
station visitors by quickly adapting our product range. Sales of merchandise and services in
2022 were in line with the plan.
In the markets of SE Europe, we generated sales revenues of EUR 157.9 million from the
sale of merchandise and services in 2022, an increase of 93 percent compared to 2021, mainly
due to the incorporation of Crodux derivati dva d.o.o. into the Petrol Group. The good sales

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results of the other companies in the markets of SE Europe were mainly achieved in tobacco
and foodstuffs, while the Croatian market in particular (excluding the impact of the
incorporation of Crodux derivati dva d.o.o. into the Petrol Group) underperformed in the lottery,
vouchers and cards and hot beverages. In Bosnia and Herzegovina, we introduced Loto-Bingo
terminals at 16 additional locations, and in Serbia, we installed electronic toll payment
machines at 5 facilities. Sales of merchandise and services were 3 percent lower than planned,
mainly due to lower sales of foodstuffs.
At the beginning of the year, the Petrol Group’s business was significantly affected by the
COVID-19 pandemic. Until mid-February, visits to points of sale and, consequently, sales on
the Slovenian market were also affected by the fulfilment of the RVT condition. In 2021, we
also took various measures to ensure user-friendly access to the range of goods and services.
The use of mobile shopping solutions has also increased, i.e. the “Na poti” mobile app.
Thanks to our management and the 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 the legal provisions.
HIGHLIGHTS:
The range of products offered at Petrol points of sale is changing and being updated as
we strive to keep up with the needs of service station visitors by quickly adapting our
product range.
Thanks to our management and the 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.
Major activities in the sale of fuels, derivatives, merchandise and services
Turbulence in the economic environment had a significant impact on business in 2022. In order
to mitigate the negative impact on the Group’s business, we further strengthened our customer
focus.
We are strengthening the position of the distribution network by adapting the business models
that we manage (bars, restaurants, car washes), digital solutions (digitalisation of forms, the
new SmartSpotter Team process tracking tool, process for introducing eTickets at motorway
locations, setting up new totems and price lists) and empowering our employees to provide
services tailored to the customer. We integrated Crodux points of sale into the Petrol network,
and we are also establishing uniform operating standards on the Croatian market.
Through various training activities, we are reinforcing the key skills of all employees in order
to provide tailor-made services to customers (the reorganisation of the work processes of sales
managers, expansion of the network of internal trainers, the revision of the protocols for the
implementation of work processes at points of sale, the tidiness of the points of sale, the
optimisation of the procedures for managing crowds, monitoring of the CEX indicator -
Customer Experience).

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We also monitor the quality of our sales processes through outsourced mystery shopping.
Customer satisfaction is monitored through the Transaction Net Promoter Score questionnaire,
where customers provide feedback on their satisfaction with the service at the point of sale. A
strong emphasis is placed on keeping points of sale clean and tidy.
We also ensure cost optimisation by monitoring the costs of individual segments and proposing
improvements to optimise operations and performance, as well as the use of technological
equipment.
In the business-to-business segment, we place great emphasis on maintaining good
relationships and working successfully with our customers, which has been particularly
important at a time of significant changes in fuel input prices and the regulation of fuel retail
prices or margins. We attract new customers and offer new products to existing customers.
We provide adequate financial security. We appointed key administrators for all major
customers to ensure that all our products are fully available to each customer.
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 range 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 range for
existing and new customers according to their needs.
In the markets of SE Europe, at a time of the tight supply of petroleum products, we established
cooperation with several private service stations, strengthened our cooperation with some
major customers, concluded several new gas cylinder supply agreements and gained several
new bitumen customers. Also, Crodux’s wholesale network was integrated into the wholesale
processes.
14.3 Energy and Solutions
By selling energy and solutions, the Petrol Group generated sales revenue of EUR 4,554,2
million in 2022, a year-on-year increase of 97 percent. The high growth is mainly a result of
the growth of electricity and natural gas prices.
Energy and Solutions underwent a number of substantive and organisational changes in 2022.
In the second half of the year especially, we were faced with unprecedented increases in the
price of energy products and limited investment funds.
The Petrol Group follows its 2021-2025 strategy, which has set the path for energy transition
towards a green future. A large part of this transition is assumed by Energy and Solutions with
its products and team of experts. A new organisational structure has been adopted at the
Group level to better meet the challenges of the energy transition.
The new organisation is based on the product as the holder of content work and the 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 professionalism, take advantage of the concentration of
knowledge by individual services and increase business transparency.
Another important substantive shift is the extension of product management to the area of
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below in a comprehensive overview of all products, business indicators and business
opportunities according to the potential of individual markets.
2022 was marked by an extraordinary increase in electricity and natural gas prices. The
price volatility of all energy products raises questions about current way of working, risk-taking,
leasing and various forms of partnerships. In particular, the rise in prices of energy products
has sharply increased the demand in all customer segments (end-customers, business
customers and the public sector) for renewable energy solutions (solar and wind power plants,
energy storages, hydrogen).
In 2022, we also launched the DOM project, which sets out a comprehensive strategy for
developing the sale of energy solutions to end-customers.
14.3.1. Energy solutions
Systems for the energy and environmental management of buildings
We generated EUR 41.7 million in sales revenue from the energy solutions product.
The Energy Efficiency Directive establishes a number of measures in the field of energy
efficiency, including the leading role in the energy renovation of public sector buildings, which
is to serve as an example for other stakeholders. In this context, the Directive requires that,
from 1 January 2014, three percent of the total floor area of buildings owned and occupied by
public sector entities be renovated each year. The Directive was transposed into Slovenian
law by the Energy Act EZ-1.
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, the Petrol Group 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, 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 for the 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 the contractual penalties, if any, in case the agreed results or savings are
not achieved (no service - no payment).
In 2022, we successfully completed three major projects and implemented additional
measures in one existing project:
comprehensive and technological energy renovation of public buildings in the Municipality
of Brezovica (four buildings covering an area of 3,000 m
2
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comprehensive energy renovation of the Residential Care Home of dr. France Bergelj
(three parts of the building covering an area of 6.4 thousand m
2
);
technological energy renovation of public buildings in the Municipality of Novo mesto -
additional measures on an existing project (three buildings with an area of 12 thousand
m
2
);
comprehensive and partial energy renovation of buildings in the Municipality of Ljubljana
(EOL-3), comprising 19 buildings and an area of 52.5 thousand m
2
. In 2022, 12 buildings
were completed, totalling 38 thousand m
2
.
In 2022 we carried out the energy renovation and assumed the management of 20 buildings
with a total area of 59.4 thousand m
2
.
In 2022, we started the implementation of two more projects (EUO Ruše and EUO Ig), which
will be completed in spring 2023.
In 2022 we implemented energy performance contracting services at 365 buildings with a total
area of 1.1 million m
2
, which is comparable to the floor area of approximately 95 Petrol office
buildings in Ljubljana.
Water supply systems DISNet-WS (Digital Intelligent Smart Networks Water Supply)
The digital transformation, which has become a reality here and worldwide, is changing the
structure of national economies, affecting macroeconomic categories and radically changing
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 and efficiency 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 to 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 digital
transformation of the management of water supply systems. The processes carried out by the
DISNet-WS Group for our service users have proven to be an effective measure and are
recognised by critical infrastructure managers as a key part of their management process.
In 2022, we successfully completed negotiations for the maintenance service of the digitised
telemetry of the water supply system managed by Komunala Novo mesto in the area of central
Dolenjska and the area of Suha Krajina. In mid-2022, we completed the 10-year Technical and
Economic Optimisation of the Kranj Water Supply System (TEOVS) project, which saved
nearly 2 million m
3
of drinking water per year. In December, we signed a framework agreement

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to continue our activities in the management of the Kranj water supply system for the next
three years.
We also successfully continued working with all our strategic partners: Javno podjetje
Vodovod Kanalizacija Snaga Ljubljana, Komunalno podjetje Velenje, Mariborski vodovod,
javno podjetje. We continued one of the largest infrastructure digitalisation projects in the
region with a focus on reducing water losses, Vodovod Slavonski Brod, which is among the 10
largest in Croatia. In November 2022, together with our Slovenian partner, Javno podjetje
Vodovod Kanalizacija Snaga Ljubljana, we presented the successfully completed project of
upgrading the digital twin water supply system with measures for the effective reduction and
management of water losses at the international conference HGVIK (Hrvatska grupacija
vodovoda i kanalizacije).
With DISNet-WS services, we support the management of more than 60 water supply systems
in seven countries in the region. We cooperate with 17 major drinking water system
operators (Ljubljana, Maribor, Kranj, Velenje, Murska Sobota, Novo mesto, Ptuj, Čakovec,
Slavonski Brod, Novara, Arad, Sofia, Podgorica…), as well as some smaller ones in more than
80 municipalities.
We support our partners by digitalising services in real-time, improving the efficiency of
operation and management on almost 15 thousand km of water supply network, with more
than 1.3 million users and more than 420 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 below those before the measures, which we consider to be a great
success. Based on our references, we joined the project in 2021, with which we want to reduce
water losses in one of the largest water supply systems in the region by approximately 1.7
million m
3
by the end of 2024.
Wastewater treatment
In modern times, a clean environment is becoming increasingly important and wastewater,
which can significantly 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 the treatment of both
municipal and industrial wastewater, which has to be environmentally friendly and cost-
effective. We provide wastewater treatment services both for our own needs and as a
commercial activity.
Yearly operational monitoring performed by authorised institutions indicates that all the
machinery in the Petrol Group has been operating in compliance with the legislation and
achieved cleaning efficiency.
In 2022 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. We
also operated industrial wastewater treatment plants in the companies Papirnica Vevče
d.o.o. and Paloma d.d. 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. We also operate and maintain more than 50
small municipal wastewater treatment plants, ranging in size from 5 to 800 PE.

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In 2022, after obtaining an environmental permit, we carried out a trial run of the Ihan Mud
Dryer. 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 2022, a total of over 3.2 million m
3
of municipal wastewater was treated at four municipal
wastewater treatment plants, and 1.5 million m
3
of industrial wastewater was treated at
industrial wastewater treatment plants. At Petrol’s points of sale, we operated 52 small
treatment plants and pumping stations.
District energy systems DISNet-DH (Digital Intelligent Smart Networks District
Heating)
Heat generation is one of the largest consumers of energy and an area where energy efficiency
is a key objective. The main guidelines for the development of smart district heating systems
are: reducing energy consumption and cost-efficiency, and measures to increase renewable
energy sources through the simultaneous digitisation of the system. Through forecasting and
mathematical modelling, we can determine the needs of district heating systems, providing a
comprehensive and intuitive overview of the situation at all points in the network and the impact
of system changes on the primary energy source. Through digitalisation, we ensure that heat
losses are reduced and system operating costs are minimised, while maximising efficiency and
supporting decarbonisation and ensuring network optimisation.
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.
With smart grids, we are developing district heating systems as part of the smart city
infrastructure - smart heat generation, distribution and off-take.
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). In 2022, we have further strengthened our cooperation with
major district energy systems (Ljubljana, Velenje, Maribor, Zagreb, Osijek, Sisak, Tuzla,
Belgrade...).
We manage one of the largest district heating systems in the Balkans: the “Belgrade Power
Plants” district heating network, which, with over 1,600 km of pipelines and instrumentation,
connects the generating source to the end users with an average annual heat production of
over 3,500 GWh.
Efficient lighting systems
The entire region in which the Petrol Group is present is becoming increasingly aware of the
importance of the 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

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light pollution of the environment. 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
Protection From Light Pollution is in force, while Serbia has in place: the Energy Act, the
Efficient Energy Consumption Act and the 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 2022, despite limited investment funds, we managed to implement energy-efficient public
lighting renovation projects in Šentilj, the Croatian municipality of Oriovac, and the Serbian
municipality of Kikinda. At the end of 2022, we started work on additional projects in Croatia:
Trogir, Jastrebarsko and Molve. This will further strengthen Petrol’s position in the region of
SE Europe.
In the region of SE Europe, the Petrol Group will thus manage a total of 31 concessions or
public lighting systems. Through the energy renovation of public lighting systems, we save
over 28 thousand MWh of electricity per year and reduce CO
2
emissions by more than 17
thousand tons annually.
We are also continuing to replace inefficient lighting in public buildings and in dedicated sports
facilities through energy and environmental management projects.
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.
Using Tango allows internal and external subscribers to:
constantly monitor the operation of various systems in one place;
respond quickly to changing system conditions;
analyse the operation of devices and systems;
improve operational efficiency while improving the quality of services;
reduce energy use and costs;
introduce the automation of process and device management based on advanced
analytical models.

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In 2022, we used Tango in many Petrol products and areas, with which we are present in our
key markets. In the energy sector, Tango is used in:
district heating systems;
water systems;
efficient public lighting systems;
energy management of facilities;
natural gas distribution;
closed economic area management;
solar electricity generation systems;
wind power generation systems;
smart energy community management;
energy storage management;
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.
Industrial solutions
In the area of industrial solutions, we manage two closed economic areas located in Ravne
and Štore, a virtual power plant integrated into the tertiary electricity supply and a boiler room
in Trebnje.
In addition to managing solutions for steam and heat, natural gas, industrial gases and
compressed air, water, waste heat, cooling systems and industrial wastewater treatment
plants, as well as virtual power plants, we pay special attention to developing and providing
integrated energy solutions for all our customers in these areas.
In 2022, our main focus was on finding solutions to provide renewable energy sources, mainly
in the area of solar power plants and electricity storage. Several studies and proposals have
been prepared but have not yet been implemented.
14.3.2. District heating
In the field of district heating, we generated EUR 23.5 million in sales revenue in 2022.
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, 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.

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At the end of 2022, 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 are proprietary
and three are market distribution systems.
In 2022, the Hrastnik Heating Plant completed an extensive reconstruction, which included the
replacement of cogeneration with natural gas, the replacement of two natural gas boilers with
a total capacity of 7 MW and the installation of a new biomass boiler with a capacity of 1 MW.
In addition to reducing greenhouse gas emissions, the aim of the retrofit is to provide reliable
heat production from a variety of energy sources, at the lowest possible cost, which is important
at a time of unpredictability in the energy market.
In 2022 the Petrol Group sold 158.9 thousand MWh of heat, which was 4 percent less than in
2021 and 5 percent less than planned. The reason for the lower sales is the above-average
temperatures during the heating season (according to the Slovenian Environment Agency,
2022 was the warmest year on record).
14.3.3. Distribution of natural gas
The Petrol Group generated EUR 16.3 million in sales revenue from gas distribution in 2022.
At the end of December 2022, the Petrol Group operated 31 natural gas supply concessions
in Slovenia, and in Serbia we supply natural gas to the municipalities of Bačka Topola and
Pećinci, as well as three municipalities in Belgrade. Since the end of 2018, the Petrol Group
has also been present on the Croatian market, where Zagorski metalac d.o.o. distributes
natural gas in certain municipalities in the areas of Zagorje-Krapinje and Zagreb County.
In Slovenia, we completed the construction and expansion of the gas pipeline network in Idrija,
started the construction of the gas pipeline in Vransko (in its final phase), completed the
construction of the gas network interconnection in Črenšovci and Beltinci, and started the final
phase of the construction of the gas pipeline in the municipality of Škocjan, which has been
delayed until 2023 due to the simultaneous construction of a part of the pipeline with the
sewerage network.
In Croatia, we mainly built small connections and carried out procurement procedures for
works at four sites in the municipalities of Zabok and Veliko Trgovišće. We have completed all
the planned investments.
In Serbia, network expansion took place mainly in Belgrade and in the municipality of Pećinci.
Most of the connections were built in the municipality of Čukarica, and we have also agreed
with Perutnina Ptuj to expand the network in the area of the chicken farms in Bačka Topola.
In 2022, the Petrol Group distributed 1,231.6 thousand MWh of natural gas, which is 10 percent
less than in 2021 and 3 percent less than planned. The lower distribution was due to the tight
energy situation and high natural gas prices.
14.3.4 Energy products
The Petrol Group generated EUR 4,457.5 million in sales revenue from energy products in
2022.

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While the world is still recovering from the COVID-19 epidemic, which had a major impact on
the economy, especially in 2020 and 2021, Europe is already facing a new crisis in 2022, this
time an energy crisis. The war in Ukraine has pushed the already high prices of energy
products to record levels. Europe's sanctions against Russia, on which it has relied for years
for cheap supplies of energy products, have also led to a reduction and phasing out of supplies.
Europe has therefore been forced to look for alternative energy sources, notably LNG via the
sea and natural gas from Norway and North Africa, and has placed a strong emphasis on
investing in its own renewable energy production.
The upward trend, which started in 2021 with the rising price of emission allowances, gained
momentum in early 2022. The declaration of martial law between Russia and Ukraine added
an unimaginable premium to EU energy market prices, driving them to unimaginable levels in
a panic to save companies’ financial positions.
While electricity prices hovered between EUR 20 and EUR 100 per MWh for most of the last
decade, they peaked at EUR 1,000 per MWh in 2022. At the same time, the price of natural
gas has risen from a long-standing range of between EUR 4 and EUR 33 per MWh to EUR
340 per MWh.
In 2022, Europe almost completely switched its natural gas imports from Russia for LNG
originating mainly from the US, Qatar, and Nigeria and increased imports from other pipelines
(Norway and Algeria).
The diversification of natural gas imports and favourable weather conditions have reduced
fears of energy product shortages in the winter, and energy prices have moderated somewhat
towards the end of 2022.
Sales and trading of natural gas
2022 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, and situations and events where
we were even worried about the security of supply, which has never happened before.
At the Austrian CEGH gas hub, SPOT gas prices in 2021 for delivery in 2022 ranged from EUR
16 per MWh in the first half of 2022 to EUR 139 per MWh in November 2022. Natural gas
suppliers have started to adjust their regular natural gas price lists for household and small
business customers for deliveries in the last quarter of 2021 and in 2022, with natural gas
supply prices for household customers already rising to EUR 80 per MWh and even EUR 125
per MWh as of 1 January 2022. Petrol d.d., Ljubljana adjusted its regular price list for natural
gas applicable from 1 December 2021, then from 1 May 2022, 1 September 2022 and 1
October 2022.
With such a sharp increase in the price of natural gas, the end users of natural gas who did
not make a timely decision to purchase this energy product found themselves in an
unfavourable situation. Consumers in communal boiler rooms owned by floor owners and in
large or small district heating systems that use natural gas as an energy source were
particularly exposed to the high natural gas prices.
Successive governments have worked to tackle the high prices and ensure the security of the
energy supply. Regulated prices did not reflect the world market prices. Measures in the area

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of natural gas pricing are described in more detail in the section Price regulation of other energy
products.
The adoption of measures to regulate the retail prices of natural gas on the basis of the Price
Control Act caused significant economic damage to Petrol d.d., Ljubljana in 2022, as the
maximum permitted retail prices were below the market prices throughout the entire period of
regulation.
The efforts of Petrol d.d., Ljubljana regarding compensation to be paid to natural gas suppliers
were focused on preparing the content for the adoption of the appropriate regulatory framework
for determining such compensation. This defined the method for determining and the
procedure for paying appropriate compensation for the economic damage caused to natural
gas suppliers as a result of the capped retail price for natural gas in accordance with the
Decree on setting gas prices from the system.
On 12 July 2022, the Energy Agency, as the competent authority for ensuring the security of
the natural gas supply, declared an Early Warning Level on the basis of the Gas Supply Act
and the Legal Act on the emergency plan for natural gas supply.
The Agency urged natural gas consumers to use energy rationally and informed industrial
consumers that in a situation requiring a declaration of a higher level of crisis, supply may be
interrupted or they may be required to switch to alternative energy sources. Suppliers and
industrial customers were invited to regularly monitor developments and the situation on the
natural gas market and to consider alternative options that could help reduce consumption in
the event of supply disruptions.
The Early Warning Level will remain in place in 2023 until it is lifted. The Agency monitors the
security of the natural gas supply in Slovenia and other countries and will promptly inform the
stakeholders and the public of any changes.
Due to the considerable uncertainty and unpredictability of the further development of the
energy crisis in Europe and the development of natural gas prices, the natural gas supply
activities of Komunalno podjetje Velenje, Komunalno podjetje Vrhnika, E.ON Ljubljana,
Domplan Kranj and Energetika Celje were discontinued in 2022.
Despite the extremely challenging conditions, the Petrol Group has ensured a reliable supply
of natural gas to all its customers, and has also taken on some new customers who were left
without a supplier on the market. By adapting our business processes, we have ensured
compliance with the new legislation in the natural gas market and with all the regulations
designed to mitigate the impact of high natural gas prices.
In 2022, the Petrol Group sold 11.7 TWh of natural gas to end-customers, 55 percent less than
in 2021 and 25 percent less than planned, mainly due to lower sales volumes in foreign
markets (a drop in sales in Eastern European markets due to the tense geopolitical situation).
In natural gas trading, the Petrol Group realised sales of 7.3 TWh.

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Market share of natural gas suppliers to end customers on the retail market in Slovenia
Source: Energy Agency
Electricity sales and trading
High electricity prices have had a major impact on all consumers, who have been used to
relatively low prices and a stable market over the past decade. Industry, which buys energy at
market prices, has faced a huge increase in operating costs as a result. Household and small
business customers, for whom we lease energy on a portfolio basis, have also seen their
regular tariffs increase as a result of the exceptional price hikes on the market. Last but not
least, this market shock has shaken electricity suppliers, who have been forced to adapt their
processes, tools and working methods to the new market conditions in a very short time.
In addition to promoting energy self-sufficiency from renewable energy sources, the EU has
mitigated the unsustainable situation of high prices of energy products mainly through market
and price regulation, which is described in more detail in the section Price regulation of other
energy products.
The cap on the maximum retail price of electricity was a positive and certainly one of the key
measures for the majority of consumers, who would not have been able to accept full market
prices. However, for suppliers, such a cap created an unsustainable situation, as they were
forced to buy electricity at high market prices, while we were able to sell it at much lower
regulated prices. A number of smaller suppliers have decided to go out of business due to the
difficult market conditions, so the market has consolidated and customers have contracted with
those suppliers that have remained in the market. The Petrol Group, together with other
suppliers, has been campaigning all along for fair compensation for the commercial damage
we have suffered as a result of the price regulation.
Despite the extremely challenging conditions, the Petrol Group has ensured a reliable supply
of electricity to all its customers, and has also taken on some new customers who were left
without a supplier on the market. By adapting our business processes, we have ensured
compliance with the new legislation in the electricity market and with all regulations designed
to mitigate the impact of high electricity prices.

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In addition to the activities related to the energy crisis, in 2022 we completed the integration of
E 3, d.o.o. into the Petrol Group, which today brings together not only the customers but also
the know-how, experience and best practices of both companies under one roof. However,
knowing that know-how alone is not enough and that data and information play an increasingly
important role in the age of digitalisation, we have also started a complete overhaul of our
portfolio management system in 2022, which will allow us to better control, manage and make
decisions, while giving customers more efficient access to all relevant information and
facilitating the implementation of activities related to the supply, purchase and production of
electricity, as well as the management of dispersed resources.
The Petrol Group’s electricity sales to end-customers in 2022 stood at 3.4 TWh, which is 7
percent less than in 2021 and 9 percent less than planned. The underperformance is due to
the current electricity market situation. The volumes sold on the trading market in 2022 were
8.7 TWh.
The market share of electricity suppliers to end customers on the Slovenian market
Source: Energy Agency
The Petrol Group 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:
The Petrol Group is investing heavily in its own production of renewable electricity. 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. In 2022, 164 GWh of electricity generated from renewable energy sources was
purchased from 127 generators and fed into the grid.
In the area of the active management of distributed energy resources (production sources
and active market customers), we are continuing our activities to develop IT support and a
portfolio aimed at reducing the cost of balancing group deviations, developing new sources
of sales revenue and preparing the basis for dynamic tariffs. With these new approaches,

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we can ensure lower final electricity costs for our customers and increase the share of
renewable energy in their final energy consumption.
We are working with our own and contracted resources to provide a manual frequency
recovery reserve (rRPF) service to ELES, the operator of the Slovenian electricity
transmission system. The rRPF service is one of the mechanisms ELES uses to maintain
a stable 50 Hz grid frequency in real-time, which is ensured by balancing electricity
consumption and production in the electricity system. We plan to expand the service in
2023 by adding new sources.
In order to manage Petrol’s fast-growing renewable energy portfolio cost-effectively and
reliably, we will place even greater emphasis in 2023 on building and enhancing IT support,
process improvements and staff training.
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. An in-depth market study was
carried out in 2022. Contacts are established with partners interested in long-term sales
and customers interested in long-term energy leases. Based on the draft general terms
and conditions and PPAs, we will be able to launch competitive PPA products in 2023 in
the markets where we operate.
14.3.5. Production of electricity
The Petrol Group generated EUR 10.7 million in sales revenue from electricity production in
2022.
Globally, 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. Renewable electricity production is also an important pillar of the Petrol
Group’s development into a modern energy company. The developments and turmoil in the
energy markets in 2022 are an important indicator of the importance of having our own long-
term, secure sources of energy production.
The Petrol Group is therefore accelerating the development and implementation of renewable
energy projects, in which wind and solar power plants will play a key role. By developing our
own production capacity, we are pursuing the strategic objective of becoming a visible regional
provider of comprehensive energy and environmental solutions, and a partner in the
development of the circular economy for the transition to a low-carbon society.
The Petrol Group has been involved in electricity production since 2003. We produce
hydroelectric power in Bosnia and Herzegovina and Serbia, where we generate electricity from
hydropower in six small hydropower plants. In 2022, they produced almost 24 GWh of
electricity.
The Petrol Group currently manages two wind power plants in Croatia (Glunča and Ljubač
wind power plants), which are expected to produce 122.7 GWh of electricity in 2022. We are
also in the final stages of developing a third wind farm.

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In 2022, a project to build one of the largest solar power plants in the region, comprising three
power plants (Suknovci, Vrbnik and Pliskovo) with a total capacity of 22 MW, was launched.
Construction will be completed in early 2023.
As part of the Petrol Green project, in 2022, we were in the process of obtaining the necessary
documentation for the installation of solar power plants on our own buildings. Over the next
two years, solar power plants will be built on our facilities in Slovenia and Croatia.
The Petrol Group is accelerating the planning and development of new renewable energy
projects, both in Slovenia and in the wider region.
In 2022, the Petrol Group produced a total of 166.8 thousand MWh of electricity, an increase
of 28 percent compared to 2021, mainly due to the new wind power plant in Ljubač. However,
due to the poor wind conditions in the cooler part of the year and low water levels in the summer
months, electricity production was 15 percent lower than planned.
14.3.6. Mobility
The Petrol Group generated EUR 4.5 million in sales revenue from mobility products and
services.
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
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:
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.
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.
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 2022,
we continued to manage the Urban-E and Multi-E projects, and commissioned the last
charging stations from 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.

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The URBAN-E project has officially ended with the installation of all 94 conventional (slow) and
18 fast charging stations in Ljubljana (47 AC and 9 DC) and Zagreb (47 AC and 9 DC
2
). A final
financial and technical report will follow in 2023.
The URBAN-E project brings together three municipalities (Ljubljana, Zagreb and Bratislava)
with companies that have experience in the field of charging infrastructure for electric vehicles
in the cohesion countries (Petrol d.d. Ljubljana from Slovenia, Petrol d.o.o. Zagreb from Croatia
and Západoslovenská energetika, a.s. from Slovakia), a railway company (Slovenske
železnice - Potniški promet from Slovenia), and innovative B2C and B2B transport service
providers (Go4 from Slovakia and GoOpti from Slovenia) to form a new strategic partnership
for green urban transport. It was designed to promote e-mobility, intermodal travel and green
transport services in the urban nodes of the core network, thus making an important
contribution to the implementation of the European Strategy on Alternative Fuels.
The URBAN-E project, a study with pilot implementation, was carried out in the central urban
centres of Ljubljana, Zagreb and Bratislava from March 2017 to December 2022. It included
the testing of urban green transport between Ljubljana and Zagreb, the deployment of parking
sensors to test parking management options and smart charging use cases. The project has
installed a network of 167 charging stations, including 144 conventional (slow charging up to
22 kW) AC and 23 AC/DC fast charging stations. The charging infrastructure deployed focuses
on intermodality and convenient integration with other transport modes and is integrated into
municipal transport strategies focused on decarbonisation and contributes to the
implementation of national sustainable mobility plans. The adopted and integrated ICT
systems for Charge Point Operator (CPO) and E-Mobility Service Provider (EMSP) services
enable the management of the charging infrastructure, different urban use cases and ensure
interoperability between urban charging networks and other long-distance charging
infrastructures. The intermodal platform developed in the city of Bratislava with the Po meste”
app is an innovative intermodal solution that supports green transport services in Bratislava
and is a key tool for citizens, city administrations and transport planners to make more informed
decisions towards zero-emission cities.
URBAN-E is co-funded by the European Union’s Connecting Europe Facility for the 2017-2022
period.
A fast-charging station at the Rudnik West outlet in Ljubljana, part of the URBAN-E project
Source: Petrol archive
2
AC - alternating current, DC - direct current

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As part of the final step to obtain a grant from the NEXT-E project in Slovenia and Croatia, we
hosted a representative from the European Climate, Infrastructure and Environment Executive
Agency (CINEA). Following the on-site verification, we received positive confirmation of the
achievement of the project’s objectives and the proper technical functioning of all the charging
stations installed in the project. This makes 30 fast chargers and 6 ultra-fast chargers eligible
for full funding.
Through the Multi-E project, we will further expand our market presence with new types of
charging stations in Slovenia and Croatia and, when the opportunity arises, enter the market
of northern Italy. In 2022, we signed contracts to further expand the public charging
infrastructure at the following locations: Ljubljana Jože Pučnik Airport, Meksiko Parking House,
Šentpeter Parking House (both in Ljubljana), Supernova Ljubljana Šiška Shopping Centre and
Supernova Koper Shopping Centre. We also installed and commissioned 6 AC charging
stations in Croatia at Lesnina Rijeka (Kukuljanovo), Lesnina Zagreb East and Lesnina Zagreb
West, as well as 3 AC charging stations at Ljubljana Jože Pučnik Airport.
In addition to the charging infrastructure in the EU projects, in 2022, we installed and
commissioned one fast charging station in front of the HOFER store in Ljubljana-Polje and
Marina Portorož in Portorož, and in Croatia we commissioned 2 fast charging stations at the
Stop-Shop Kaštel Sućurac shopping centre. For our own needs, we installed and
commissioned four conventional charging stations in front of Petrol’s premises in Dravlje.
In addition to our own investments, we expanded the charging infrastructure by selling
charging stations to private and business users both in both Slovenia and the Croatian market.
On the business side, we continue to deliver successful sales projects. At the end of March,
we completed a major BMW - BTC project, where we supplied, installed and commissioned
16 charging stations in front of the Crystal Palace office building in Ljubljana’s BTC. In the
second quarter of the year, we set up the charging infrastructure and installed a total of 12
charging stations at 3 locations for Nova KBM d.d. We will also manage the installed charging
stations. We were also successful in a public tender of the City of Maribor, where we will supply
and install 1 fast charging station for charging e-buses in 2023.
In 2022, the number of users has quadrupled compared to the previous year, and users have
completed 1.5 times more charging sessions, transferring 1.8 times more energy.
Working with foreign charging infrastructure providers allows us to host our users at a growing
network of charging stations in nearby European countries. We continue to build access to an
increasing network across Europe. Our users can use the OneCharge mobile app and the
associated bank card at the charging stations of partners with whom we have established
collaborations. We have also increased the number of partnerships we have with other
charging service providers, enabling the growing number of EV users in Europe to charge at
our charging stations. This will facilitate travel and increase traffic on our network, as users of
our partner’s mobile apps and ID cards will be able to charge seamlessly on the move in
Slovenia and Croatia, with a stopover at our locations. By collaborating and networking on an
international platform, we have expanded to 38 partnerships with charging service providers,
enabling us to grow and increase Petrol’s visibility in the field of e-mobility in Europe and in the
regions where the Petrol Group operates, as well as to further expand into the rest of the new
markets of e-mobility in Europe and the regions where the Petrol Group operates.
At the end of 2022, Petrol Group operated 417 charging stations for electric vehicles.

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Mobility services
In the area of mobility services, we develop services related to new concepts and forms of
mobility. With Atet d.o.o., we offer the market fleet management services and provide mobility
through long-term and short-term vehicle leasing. In addition, we aim to be a partner to
companies and municipalities in the green transition and in achieving their sustainability goals
through fleet electrification.
Companies that are committed to operating more sustainably or optimising their business
efficiency are increasingly turning to alternative forms of mobility, such as giving up their own
vehicles and using experts to help them manage their own fleets. We offer integrated mobility
solutions in fleet management, long-term corporate leasing, short-term vehicle rental, door-to-
door services and fleet analysis and optimisation. Tailor-made services are also
complemented by charging stations and charging solutions.
In mobility services, we realised a 60 percent increase in sales revenue in 2022 compared to
2021. Short-term rental sales revenue increased by 36 percent compared to 2021, driven by
high rental sales prices. In the long-term or operating lease of vehicles, we have entered into
contractual cooperation with some major partners, which has contributed positively to the
positive results, with a more than fourfold increase in sales revenue compared to 2021. In
2022, we also see an increased demand for electric vehicles and charging needs, which is an
excellent starting point for the efficient integration of Petrol Group services. This was also
supported by a change in legislation, which has become more favourable to green forms of
transport and offers certain benefits for electric company cars (0 percent benefit, VAT
deduction). We are actively continuing to market and integrate with other products, including
energy solutions, as completely new patterns of mobility needs and the integration of different
forms of mobility have emerged among users over the past two years. In September 2022, we
confirmed the further development of a digital fleet management support solution. With
advanced integrated solutions tailored to the customer’s needs, we aim to further strengthen
our position in the market and to offer our partners integrated support in mobility and fleet
management.
As a leading company in the field of electromobility and mobility services, Petrol’s presence is
also particularly important in establishing a corporate image that is sustainable and focused
on reducing its carbon footprint. The latter is a major but important challenge for a company
whose primary business is the sale of petroleum products.
HIGHLIGHTS:
Petrol’s new organisation will allow the Company to meet the challenges of the energy
transition.
The rise in energy product prices has dramatically increased the demand of all customer
segments for renewable energy solutions.
Petrol carries out energy performance contracting services for buildings in the narrow and
wider public sector.
We use remote energy systems to help increase energy and environmental efficiency in
nine countries in the region.
Today we manage public lighting systems in fifteen Slovenian municipalities and cities,
seven Croatian and six Serbian cities.

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Tango is the Petrol Group’s own IoT platform, which solves the challenges of modern
business and enables digital and green transformation.
With its energy solutions, Petrol helps the industry achieve the goals of the NEPN.
We are present in the markets of Croatia, Bosnia and Herzegovina and Serbia with the
production of electricity from renewable energy sources.
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 2022, we have earmarked the majority of our investment funds for the construction of solar
power plants at Vjetroelektrane Glunča 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 solutions in Slovenia and
the markets of SE Europe and in expanding sales and upgrading and maintaining logistics
capacities in Slovenia.
Due to the impact of current fuel and energy market regulations on the Group’s cash flow, we
have invested less than planned in 2022. We have made the highest priority investments, as
well as those that were legally and contractually required. This resulted in a lower-than-planned
realisation of net investments.
In 2022, net investments in property, plant and equipment, intangible assets and long-term
investments stood at net EUR 59.8 million, and in 2021 at EUR 233.2 million, of which EUR
181.7 million for the acquisition of Crodux derivati dva d.o.o.
Structure of invested assets
Fuels and petroleum products
In Slovenia, the majority of our investments were spent on the replacement of the Grosuplje
service station, capital maintenance, the installation of totems at points of sale and meeting
the legal requirements for the installation of central fuel filling cabinets at service stations.
Investment funds were also earmarked for obtaining documentation for investments to be
made in the coming years.
We have carried out projects required by law and risk reduction projects at all Petrol storage
facilities. At the Sermin petroleum products warehouse, we completed the second phase of
the renovation of the hydrant network and the installation of an additional VRU to recover
vapours from the gas storage tank.

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In November, Crodux derivati dva d.o.o. was legally merged into Petrol d.o.o. In Croatia, we
started the design of three new service stations, Dragalić S, St. Helena E and St. Helena W,
and seven renovations of Crodux service stations.
Throughout the year, we carried out investment maintenance at points of sale in all markets.
The production of renewable electricity
Renewable electricity production is undoubtedly one of the key areas for sustainable future
development as well 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 2022, we started the construction of three solar power plants in the
Croatian market, Suknovci, Pliskovo and Vrbnik, with a total capacity of 22 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. To this
end, we have participated in Petrol Green calls for proposals to find ways to save money at
Petrol points of sale in a sustainable way. To date, Petrol has been awarded EUR 0.7 million
in grants to implement Petrol Green projects.
Energy solutions
In the past year, we completed the Energy Management of Facilities (EMF) projects, namely
the EMF Dom Franceta Bergelja Jesenice, the EMF MOL EOL 3 and the EMF Brezovica, the
renovation of the EMF Ruše is underway, and the renovation of the EMF Ig is due to be
completed in February 2023.
The implementation of sales projects for the market took place, such as the sale and
implementation of heating stations, central control system and various project extensions.
In the markets of SE Europe, energy renovations of public lighting systems in the municipality
of Oriovac in Croatia and public lighting in the municipality of Kikinda in Serbia were carried
out.
Mobility
In mobility, investments in the expansion of charging infrastructure and investments in vehicles
for the provision of mobility services took place in all markets.
District heating
The existing Hrastnik Heating Plant was completely reconstructed accommodating the boiler
plants, cogeneration plants and other technical equipment necessary for the smooth operation
of the district heating system.
Energy products
After the acquisition of E 3, d.o.o. in 2021, in 2022, we successfully implemented a complete
information system replacement (ERP, CRM, Portal, Webshop) and integrated it into Petrol’s
systems, thus unifying the processes in the area of electricity supply and optimising and
improving them with our combined knowledge.

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Other
In order to participate in the digital transformation of the economy, we participated in a public
call for proposals from the Ministry of Economic Development and Technology and obtained
approval for a grant of EUR 1.4 million for the implementation of the Digitisation of the Oil&Gas
E2E Supply Chain project. The project will be a vital foundation for the next 20 years of the
Petrol Group’s business. The project will digitise and upgrade the Company’s key core
processes, from the procurement of petroleum products to their sale. There will be a particular
focus on efficient and digitised logistics.
Throughout the year, we invested in the modernisation of information and other infrastructure
and in ensuring security both in Slovenia and in the markets of South-Eastern Europe.
HIGHLIGHTS:
In accordance with the adopted strategy of the Petrol Group until 2025, the bulk of the
investment budget was allocated to energy transformation, specifically to expanding
operations in energy and solutions in Slovenia and the markets of SE Europe and in
expanding sales and upgrading and maintaining logistics capacities in Slovenia.
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.
In mobility, investments in the expansion of charging infrastructure and investments in
vehicles for the provision of mobility services took place in all markets.
The Digitisation of the Supply Chain project will digitise and upgrade the Company’s key
core processes, from the procurement of petroleum products to their sale. There will be a
particular focus on efficient and digitised logistics.

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16. Share and ownership structure
The share price movements on the Ljubljana Stock Exchange in 2022 were significantly
affected by the escalation of tensions and the war in Ukraine, as well as by the energy crisis
3
.
This was also reflected in the SBI TOP index, which lost 16.9 percent relative to the end of
2021, reaching 1,046.1 points at the end of 2022.
Petrol’s shares are traded on the prime market of the Ljubljana Stock Exchange (LJSE) under
the ticker PETG and have been listed there since 5 May 1997. Last year, Petrol’s share was
again one of the most traded shares on the Ljubljana Stock Exchange, and at the end of 2022,
its price was 21.3 percent lower than at the end of 2021. The shares of Petrol d.d., Ljubljana
accounted for 19.96 percent of the index as of 28 December 2022. Despite the challenging
business environment in 2022, Petrol d.d., Ljubljana paid a dividend in the amount of EUR
30.0 gross per share for 2021.
16.1 Petrol d.d., Ljubljana, share split
On 1 November 2022, Petrol d.d., Ljubljana, performed a split of the PETG share (in a ratio of
1:20) in accordance with the resolution of the 34
th
General Meeting following the entry into
force of the resolution on the amendment of the Articles of Association, through the entry of
the amendment of the Articles of Association in the court register, the corporate exchange act
and the prescribed procedures in the Central Register of Securities at the KDD d.o.o. and the
Ljubljana Stock Exchange.
The 34
th
General Meeting of Petrol d.d., Ljubljana, held on 21 April 2022, at the proposal of the
Management Board and the Supervisory Board of Petrol d.d., Ljubljana, adopted a resolution
on the PETG share split. The share capital of Petrol d.d., Ljubljana, in the amount of EUR
52,240,977.04 was divided into 2,086,301 ordinary registered no-par value shares. The
General Meeting adopted a split ratio of 1:20, which means that the total number of PETG
shares increased by a factor of 20 from 2,086,301 to 41,726,020 as a result of the amendment
of the Articles of Association and the split. The share capital of Petrol d.d., Ljubljana, amounting
to EUR 52,240,977.04 remained unchanged following the distribution of PETG shares.
16.2 Petrol share price
After being on average higher at the end of 2021 than at the end of 2020, share prices mostly
declined in 2022. Such share price movements on the Ljubljana Stock Exchange in 2022 were
significantly affected by the escalation of tensions and the war in Ukraine, as well as by the
energy crisis. This was also reflected in the SBI TOP index, which lost 16.9 percent relative to
the end of 2021, reaching 1,046.1 points at the end of 2022.
After an initial rise in Petrol’s share price at the beginning of 2022, the share price declined
later in the year. The share price reached EUR 20.0 at the end of 2022 and was 21.3 percent
lower than at the end of 2021.
3
Sources of data in the Share and ownership structure section: websites of the Ljubljana Stock Exchange, share
register of Petrol d.d., Ljubljana, Petrol Group’s 2022 financial statements.

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Base index changes for Petrol’s closing share price against the SBI TOP index in 2022
compared to the end of 2021
The average price of Petrol’s shares, which stood at EUR 23.89 in 2022, was up 14.7 percent
year-on-year. The closing share price ranged between EUR 17.70 and EUR 28.10 in 2022.
Petrol’s share prices in 2022 and 2021 in EUR
Closing price and the volume of trading in Petrol’s shares in 2022
2022
(recalculation
according to the
distribution of shares)
2021
(recalculation
according to the
distribution of shares)
2021
Total shares outstanding 41,726,020 41,726,020 2,086,301
Highest closing price for the year 28.10 25.80 516.00
Lowest closing price for the year 17.70 16.25 325.00
Average closing price for the year 23.89 20.83 416.68
Closing price as at last trading day of the year 20.00 25.40 508.00
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)
-21.26% 56.31% 56.31%

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16.3 Trading volume and market capitalisation
The volume of trading in Petrol’s shares at the Ljubljana Stock Exchange amounted to EUR
52.3 million in 2022, including batch trading (totalling EUR 12.7 million), and was down 7.0
percent from 2021. The turnover of the Petrol share, excluding bundles, totalled EUR 39.5
million in 2022, which was 48 percent more than in 2021.
The trading in Petrol’s shares accounted for 12.1 percent of the Ljubljana Stock Exchange total
trading volume, which stood at EUR 430.9 million, and also 12.1 percent of the stock market’s
share trading volume.
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 4.4 million.
The market capitalisation of Petrol d.d., Ljubljana as at the last trading day of 2022 totalled
EUR 834.5 million, which accounted for 10.9 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 2022.
In 2022, Petrol’s shares were again one of the most traded among those listed on the
Ljubljana Stock Exchange.
16.4 Key financial indicators for Petrol’s shares
The Petrol Group’s earnings per share (EPS) attributable to the owners of the parent company
in 2022 stood at EUR 0.11 and its cash earnings per share (CEPS) at EUR 2.45. The return
per share calculated by comparing the closing share price as at the end of 2022 and the closing
share price as at the end of 2021 was negative and stood at -21.3 percent. Combined with the
dividend yield of 5.9 percent, the total return per share stood at -15.4 percent in 2022.
The ratio between the shares’ market price and book value as at the end of 2022 the latter
amounting to EUR 20.61 in the case of the Petrol Group was 0.97 (P/BV), which was lower
than at the end of 2021. The ratio between the shares’ market price as at the end of 2022 and
the Petrol Group's earnings per share stood at 181.9 (P/E).
16.5 Share capital structure
The structure of Petrol d.d., Ljubljana share capital changed slightly in 2022 compared to the
end of the previous year. The largest single shareholder is Clearstream Banking SA client
account with 6,467,732 shares. It is followed by the Slovenian Sovereign Holding with
5,299,220 shares, the Republic of Slovenia with 4,513,980 shares and Kapitalska družba d.d.
with 3,452,780 shares. Other large single shareholders include OTP banka d.d. client
account, Erste Group Bank AG - PBZ Croatia OsigurVizija Holding, d.o.o., Vizija Holding Ena,
d.o.o. and Perspektiva FT d.o.o.

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Ownership structure of Petrol d.d., Ljubljana at the end of 2022 and at the end of 2021
At the end of 2022, 12,677,587 shares or 30.4 percent of all shares were held by foreign legal
or natural persons. Compared to the end of 2021, the number of foreign shareholders
increased by 3 percentage points, while in 2022, the total number of shareholders decreased
from 21,730 as at the end of 2021 to 21,203.
Shares owned by members of the Supervisory Board and the Management Board as at
31 December 2022
No. of Shares in %
No. of Shares
(recalculation
according to
the distribution
of shares)
in %
Slovenski državni holding, d.d. 5,299,220 12.7% 5,290,320 12.7%
Republic of Slovenia 4,513,980 10.8% 4,513,980 10.8%
Kapitalska družba d.d. together with own funds 3,642,789 8.7% 3,650,860 8.7%
Domestic institutional investors and other legal entities 5,906,011 14.2% 7,084,640 17.0%
Foreign legal entities 12,628,247 30.3% 11,378,840 27.3%
Private individuals (domestic and foreign) 9,121,313 21.9% 9,192,920 22.0%
Own shares 614,460 1.5% 614,460 1.5%
Total 41,726,020 100.0% 41,726,020 100.0%
Petrol d.d., Ljubljana
31. December 2022
31 December 2021
Name and Surname Position
Shares
owned
Equity
share
Supervisory Board 1,760 0.0042%
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 Member of the Supervisory Board 0 0.0000%
5. Mladen Kaliterna Member of the Supervisory Board 0 0.0000%
6. Mário Selec Member of the Supervisory Board 0 0.0000%
Internal members 1,760 0.0042%
1. Marko Šavli Member of the Supervisory Board 1,760 0.0042%
2. Alen Mihelčič Member of the Supervisory Board 0 0.0000%
3. Robert Ravnikar Member of the Supervisory Board 0 0.0000%
Management Board 80 0.0002%
1. Nada Drobne Popov President of the Management Board 80 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 Smol 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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16.6 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.si/ 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 2022 regarding
the contingent increase in share capital.
Reserves for own shares
Petrol d.d., Ljubljana did not repurchase its own shares in 2022. As at the last day of 2022, the
number of own shares stood at 614,460, representing 1.5 percent of the share capital. This
includes 494,060 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 2022 and was EUR
7.3 million lower than their market value on that date. The remaining 120,400 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 into the Petrol Group. Own shares of Petrol d.d.,
Ljubljana, in total 722,840 (without the shares of Geoplin d.o.o. Ljubljana), were purchased
between 1997 and 1999 (this figure is recalculated to the number of shares after the split; the
number of shares before the split was 36,142). 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.
In accordance with a resolution of the 34
th
General Meeting held on 21 April 2022, the
Management Board of Petrol d.d., Ljubljana is authorised to acquire own shares within 12
months from the effective date of the resolution. Under this authorisation, a maximum number
of own shares may be acquired so that the total percentage of the shares acquired based on
this authorisation does not exceed, together with other own shares already held by the
Company, 2 percent of the Company’s share capital. The Company may acquire its own
shares through transactions entered into on a regulated securities market, at the then
prevailing market price. The Company may also acquire its own shares outside a regulated
securities market. When acquiring shares on a regulated or unregulated securities market, the
purchase price of the shares may not be less than 50 percent of the book value of the share,
calculated on the basis of the Petrol Group’s latest publicly published audited annual accounts.
The purchase price of the shares may also not exceed 11 times the earnings per share (EPS)
calculated on the basis of the Petrol Group’s latest publicly published audited annual accounts.
Pursuant to Article 381(3) and (4) of the Companies Act (ZGD-1), the Company may reduce
the share capital (once or successively) by withdrawing own shares acquired pursuant to this
authorisation (but not own shares acquired earlier) in a simplified procedure and against other
profit reserves with the consent of the Supervisory Board. The Company may only use its own
shares acquired pursuant to this authorisation in accordance with this resolution. The
resolution entered into force on 30 November 2022.

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A dividend policy maximising long-term returns
A shareholder policy that is based on the long-term maximisation of returns for shareholders
is one of the cornerstones of Petrol’s development strategy. Petrol’s management board
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.
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.
In accordance with a resolution of the 34
th
General Meeting of 21 April 2022, Petrol paid out in
2022 a gross dividend of EUR 30.00 per share for 2021, taking into account the number of
Petrol shares before the split.
Dividend overview 2016 2021 (recalculated to the number of shares before split)
Balance sheet profit
The accumulated profit of Petrol d.d., Ljubljana, as determined in accordance with the
Companies Act (ZGD-1), stood at EUR 61.85 million in 2022.
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 2022. In March and August, we participated
in the online conference of the Ljubljana Stock Exchange, and in May and November 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. In
May and October, we took part in the “Trade on the Stock Exchange” event organised by the
Ljubljana Stock Exchange.
All information relevant to the 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.
Period Gross dividend per share
2016 EUR 14.00
2017 EUR 16.00
2018 EUR 18.00
2019 EUR 22.00
2020 EUR 22.00
2021 EUR 30.00

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First Listing Share of the Year Award
For many years, the Ljubljana Stock Exchange has been presenting the traditional Ljubljana
Stock Exchange Awards. One of the categories is the First Listing Share of the Year Award for
2022, which went to Petrol d.d., Ljubljana. According to the stock exchange, PETG had the
highest turnover, price increase, turnover increase and number of days traded in 2022. The
award was presented on behalf of Petrol d.d., Ljubljana to Matija Bitenc, Member of the
Management Board of Petrol responsible for Finance, Information and Risk.
“This award is proof that we have successfully coped with the challenging economic
circumstances in 2022 and that we have maintained investor confidence despite the energy
crisis. At the same time, it is also a confirmation that the decision to split the PETG share to
attract new investors and increase the share’s liquidity was the right one,” said Matija Bitenc,
Member of the Management Board of Petrol, upon receiving the First Listing Share of the Year
Award.
HIGHLIGHTS:
The Petrol share split.
In 2022, Petrol’s shares were again one of the most traded among those listed on the
Ljubljana Stock Exchange.

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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 2022 the Audit
Committee received quarterly reports on all the 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 that 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 sales revenues above USD 2 billion.
In 2022, Internal Audit continued to carry out certain procedures to improve the quality of work:
due to organisational changes it updated the set of departments/processes within the
Petrol Group (the audit universe);
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;
following a new risk assessment, Internal Audit’s work programme for 2023 was approved
in December 2022 by the Management Board and the Supervisory Board;
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
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goods and finance. In 2022, the internal audit performed 11 regular and extraordinary audit
reviews of assurance (one review was in its final phase as at 31 December 2022). 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 had not been
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 2022, in
addition to the audits, Internal Audit regularly monitored the implementation of
recommendations from previous and current years.
In 2022, we also allocated part of our resources to activities related to a comprehensive
application solution for internal auditing. The aim of the comprehensive solution, which is to be
implemented in 2023, is to ensure even more efficient and systematic internal audit
procedures.
HIGHLIGHTS:
Internal Audit reported quarterly to the Audit Committee in 2022 on all the audits, significant
findings and recommendations for improving the system of internal controls and risk
management within the Petrol Group.

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18. Information technology
2022 was a year full of business challenges, from the acceleration of digitisation and process
automation, to external influences (war in Ukraine, inflation, multiple regulatory requirements,
etc.), which was also reflected in a tremendous increase in requests for changes and upgrades
to information systems and IT solutions.
18.1 Introduction of key information solutions
We have accelerated the pace of our planned IT transformation. Following the application to
the call for tenders “Digital Transformation of the Economy” of the Ministry of Economic
Development and Technology (under the “Recovery and Resilience Plan” national programme)
in September 2022, the consortium of Petrol d.d., Ljubljana (as lead partner), Smart Cargo
d.o.o. and Špica International d.o.o. has been awarded a grant to implement theDigitisation
of the Oil&Gas E2E Supply Chainproject. Together with our partners and the selected SAP
solution implementation provider, we expect to lay an important foundation for the Petrol
Group’s future operations in the next 14 months. The project will digitise and upgrade the
Company’s key core processes, from the procurement of petroleum products to their
distribution.
In parallel with other activities, Petrol d.o.o., Ljubljana issued a tender for the selection of a
SAP Oil&Gas service provider in September 2022. The selection process is in its final stages.
At the beginning of 2022, following the preliminary work carried out in the last quarter of 2021,
we started to work intensively on the IT integration of E 3, d.o.o. and the migration of IT
support to the Petrol information system. E 3, d.o.o.’s operations were fully migrated to the
Petrol information system in October 2022 (SAP, CRM, portal, document system).
In February 2022, we made it possible for customers to shop via a new online shop (eShop
B2C), developed on a modern technology platform, which brings many improvements to both
business users in the 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. During 2022, we have been upgrading the solution with
new/additional functionalities.
In early 2022, we developed IT support to enable the migration of Crodux derivati dva d.o.o.
service stations to the Petrol information system. The migration of 93 service stations of Crodux
derivati dva d.o.o. into the Petrol information system was completed in October 2022. In
November 2022, with the legal merger of the two companies, we completed the complex
project of the acquisition of Crodux derivati dva d.o.o. by Petrol d.o.o. An important part of the
project and of the future success of the business was the migration of Crodux derivati dva
d.o.o.’s information system to Petrol’s information system. During 2022, we continued to
develop and successfully upgraded Petrol’s information system with many new functionalities
that enable quality support for the overall operations of the merged company.
In 2022, we made the necessary preparations and adjustments to Petrol’s information system
for the Croatian currency transition to the euro at Petrol d.o.o. in Croatia. We have
successfully implemented the transition as of 1 January 2023, allowing the Company to

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operate smoothly. The project was very complex as it encompassed several information
systems (retail, back-end ERP and Petrol information systems, mobile applications, CRM,
ETRM,...) and many business areas and users.
18.2 Modernising, improving, optimising and digitalising
We upgraded the retail solutions that support the operation of Petrol service stations in all
markets by supporting the tax certification of invoices in Serbia.
We have also developed platforms that make it easier and more flexible to integrate new
partner services into point-of-sale. As part of this, we offered customers the option to purchase
AirCash prepaid cards and to pick up Express One parcels at points of sale in Slovenia. In
2023, we will build on the solutions and expand them to other Petrol markets.
In the first half of the year, we replaced the In-store mobile apps (technological and content
overhaul). We have also developed a mobile checkout that enables new business models and
new approaches to Petrol’s customers (both in-store and out-of-store).
To support 24/7 fuel delivery at service stations, a mobile app has been developed to enable
out-of-hours fuel delivery.
The dynamics of changes in goods prices at service stations dictate the need for the clear and
digitalised communication of prices to customers. In 2022, we implemented the integration of
a platform for the digitalisation of the display of prices of goods in stores (electronic price
tags). The solution is currently in use at 38 Petrol points of sale.
Changing fuel prices and adapting to the business environment requires adequate IT support.
To this end, the Dynamic Pricing system has been integrated with Petrol’s IS for fuel price
management.
At the beginning of the year, we introduced the SAP Ariba software solution to support our
procurement processes, which was successfully integrated with our back-office systems.
In May, we successfully completed the upgrade of the entire SAP system to the latest version,
which allows us to track the development and implementation of the next steps - SAP projects.
In the second half of 2022, there were an extraordinary number of regulatory requirements in
the area of energy sales on the networks, especially in the area of electricity and gas sales
(Slovenia, Croatia, Serbia), which we successfully implemented.
For the digitalisation of sustainability certification, the VTA Biofuels solution was implemented
and integrated into the Petrol information system.
We have started a technological, design and content redesign of the “Na poti” mobile
application. The redesign will continue in 2023. With the redesigned app, we aim to offer
users an even better shopping experience at Petrol points of sale.
We expanded the use of the Jira tool and through this solution, supported many additional
processes, including the process of managing development needs.

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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.
We have modernised and upgraded many existing and added some new integrations, thus
improving the communication and speed of internal processes and processes with our
partners. At the end of 2022, we completed a major upgrade and replacement of our
Application Programming Interface (API) management platform.
The described activities were carried out in all the markets of the Petrol Group.
18.3 Information security put to the test
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.
The heightened security situation and changed geopolitical relations in 2022 have also led to
significant changes in some cyber risks. The probability of a catastrophic event affecting the
normal functioning of the information system has increased significantly. That is why the Petrol
Group immediately started to increase the monitoring of security events and information in our
control systems within the Security Operations Centre (SOC) with the help of an external
partner. At Petrol, we have taken all possible measures to minimise the success of such
attacks (duplicated connections from two ISPs, hiring and testing a service to detect and
prevent DdoS attacks).
At the Petrol Group level, we have continued our activities to strengthen our resilience
against cyber-attacks and to build on existing measures. These include the aforementioned
establishment of a 24/7 SOC, the introduction of effective data loss prevention (DLP), the
establishment of a certification agency (CA) to enhance the security of communications,
the definition of security requirements for key suppliers in accordance with the
requirements of the Information Security Act, and we have also commenced the
implementation of a comprehensive business continuity management system in
accordance with the ISO 22301 standard.
The effectiveness of our successful defence, detection and response to information security
incidents is demonstrated by the fact that no incidents have caused commercial loss or
compromised the security of the personal data of either employees or customers.
HIGHLIGHTS:
In 2022, no information security incidents caused commercial loss or compromised the
security of personal data.

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SUSTAINABLE DEVELOPMENT

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19. Strategic orientations and goals for the sustainable development
of the Petrol Group
Petrol recognises the importance and complexity of the energy transition. We are pursuing an
interim goal for the European Union to reduce emissions by at least 55 percent by 2030, the
Regulation on green investments or Taxonomy Regulation and the 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.
Our goals until 2025 are ambitious:
reducing the carbon footprint of our core activity by 40 percent;
investing EUR 244 million in energy transition;
164 MW of installed renewable electricity production capacity.
The Petrol Group has a three-fold sustainable orientation:
1. Low-carbon energy company focusing on a more sustainable energy portfolio and
mobility, our own production of renewable electricity, energy efficiency and on 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 support
for the wider community in all the markets where the Petrol Group operates (support for
humanitarian, cultural, sports and environmental projects) also having a prominent role.
3. Circular economy involvement in wastewater treatment, the recycling of carwash water
and the re-use of industrial wastewater. Particular attention is paid to reducing or replacing
raw materials used in packaging with recycled and biodegradable materials.
Low carbon energy company
Decarbonisation is carried out in four main areas:
We produce electricity and heat from renewable energy sources such as wind, water,
solar, biowaste and wood biomass.
We ensure energy efficiency through a comprehensive range of energy and
environmental solutions for cities, businesses and households. We achieve energy savings
through a wide range of services, from the optimisation of heating, lighting and the energy

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renovation of buildings to the addition of fuels and the sale of energy-efficient household
appliances and e-bikes.
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. 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 the Q Max iQ diesel fuel, which reduces greenhouse gas (GHG)
emissions by 26 percent compared to conventional diesel fuels.
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
cycle of the fuel per unit of energy. Such alternative fuels include liquefied petroleum gas
and natural gas for vehicle propulsion.
Partnership with employees and the social environment
We care for the health and safety at work of employees and provide customers with 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. Thanks to new digital channels, a broader range of
energy products and a personalised offer, we are also helping our customers make the
transition from traditional energy sources to cleaner renewable energy.
An important part of our digital story is e-learning, which has an indirect positive impact on the
environment. We drove less due to remote learning and saved paper due to materials in
electronic format.
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. We
run a number of social responsibility projects, such as humanitarian actions and sponsorships.
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 operates four concessions for municipal wastewater treatment and manages and treats
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 throughout its lifecycle. We are
introducing the use of recycled packaging materials for our own-brand products.

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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 the efficient separation of
waste at the source. The range of our activities and points of sale affects the diversity of the
waste we handle. At all Petrol locations, waste is separated at source; the biggest challenge
is motorway rest areas, which are used as a stopping point for passengers in transit.
A strategic perspective and increasing objectives
The 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. As a
partner to industry, the public sector and households, Petrol is taking a leading role in achieving
environmental goals. All employees are part of Petrol’s commitment to remain competitive in
the new conditions of transition to a greener future with sustainable readiness.
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. Our activities are complex and diversified; therefore, we are constantly formulating a
methodology for sustainable development, measurement, evaluation and reporting.
HIGHLIGHTS:
We want to become an integrated partner in the energy transition, offering an excellent
user experience.
Thanks to new digital channels, a broader range of energy products and a personalised
offer, we help our customers make a transition from traditional energy sources to cleaner
renewable energy.
Our goal is to reduce the carbon footprint of our core activity by 40 percent.

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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 2022
The measures to contain the epidemic were relaxed in 2022, which helped facilitate the
implementation of regular work processes.
At the end of 2022, there were 6,224 people employed within the Petrol Group and at third-
party managed service stations, of whom 47 percent are abroad. Compared to the end of 2021,
the number of employees in 2022 remains almost the same (13 fewer employees in total at
the end of 2022).
Employees in the Petrol Group 2020 2022
Employee structure in the Petrol Group
At the end of 2022, the average age of Petrol Group employees was 40 years.52 percent of
employees were male and 48 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).

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The Petrol Group’s education structure as at 31 December 2022
20.2 Recruitment
Recruiting the best experts is the key to achieving our business goals. Attracting new top
external staff, a diverse pool of in-house staff and scholarships constitute important
components of the business growth plan.
During the recruitment process, all candidates are given equal treatment irrespective of
gender, age or other circumstances. Acquiring the right staff is becoming increasingly
challenging, which is why we look for candidates through different channels. We have set up
our own recruitment database to find new staff quickly and efficiently. In recruitment and
selection, we use various 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 to 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.
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.

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The voluntary supplementary pension insurance has been part of Petrol’s salary policy
since 2002. The scheme covers the employees of the parent company.
In 2022, after almost a year of negotiations with a group of Croatian labour negotiators, trade
union members and the Workers’ Council, we signed the new Petrol Company Collective
Agreement in Croatia, which regulates the rights and duties of employees at Petrol d.o.o. The
new collective agreement is the result of a successful dialogue and cooperation with the social
partners.
20.4 Management based on goals and feedback
Performance is monitored through a performance management system that provides periodic
feedback between the manager and the employee, so that employees can improve their
performance. In 2022, 535 employees took part in annual interviews and 1,048 in quarterly
interviews. The system of quarterly periodic monitoring and evaluation of individual
performance provides managers with a useful management tool to guide their employees
towards strategic goals and enables employees to have direct influence and accountability on
the achievement of individual objectives and thus on the level of individual performance
rewards.
20.5 Supporting employee growth and development
In the autumn, we invited all the employees of Petrol d.d., Ljubljana, with the exception of point-
of-sale employees, to complete a personal development plan. The decision to draw up a
career plan is the first and most important step in actively managing one’s own professional
and career development. At the same time, it is an opportunity to strengthen the employee-
manager relationship, provides opportunities for open communication and feedback, and helps
build trust and respect. In this way, we identified highly motivated employees and recognised
them as promising or key to their processes. Based on development plans, we support
motivated employees in their career development, and actively create an environment in which
employees can realise their development plan and their potential.
20.6 Training in figures
In 2022, the Petrol Group delivered almost 122 thousand teaching hours, an increase of 42
percent compared to the previous year. On average, each Petrol employee received more than
19 hours of training. The increase is due to the release of the COVID-19 epidemic control
measures, which meant that we were again able to organise more face-to-face training. The
number of participants is still very high or higher than in the pre-COVID-19 period, with 32,000
participants. This is due to the introduction of more short e-courses for staff and external
collaborators. On average, each employee in the Petrol Group attended at least 5 different
courses.
Strategy In Action is a training programme designed to enhance strategic management skills.
In cooperation with the IEDC International School in Bled, we have developed a training
programme for the top and middle management of the Petrol Group and delivered the first
module in 2022. The programme will continue in 2023, with 130 employees. Supporting
activities (group learning, coaching, etc.) further promote interdisciplinary cooperation, project
work and potential development.

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Professional Development of Managers is a two-year programme involving all operational
managers who manage colleagues, delivered through skills training.
2022 was also a special year for training due to the upstream merger of Crodux derivati dva
d.o.o. into Petrol d.o.o. and the integration of E 3, d.o.o. into Petrol’s information system. The
induction of employees in the Croatian retail network took place with the help of an in-house
trainer, both technically and in terms of skills. We also built a common culture and relationships
around change, with the help of external contractors, motivational speakers and renowned
lecturers, in order to make the integration process as smooth as possible. We also launched
an Open Space programme for our Croatian colleagues and started Croatian and Slovenian
business courses for support and business functions in both companies.
We enhanced compliance training by training all the managers on how to switch on the
document sensitivity function. Corporate Integrity and How We Communicate at Petrol are
regular e-courses for all new employees, and a new e-course on the new Personal Data
Protection Act is in preparation.
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, the security of card operations, and food handling). We updated the skills
training system for area managers, sales managers and business managers and renamed it
Energy for Leadership.
In 2022, induction seminars for newly recruited salespeople were held at learning centres in
Zalog, Rače and Nova Gorica. 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 the markets of SE Europe comprises 12
coaches. Every year, we renew our internal certificates and we are committed to maintaining
the quality of the coaching skills. In 2022, we made the School for Internal Trainers available
to a new group of point-of-sale employees. 7 new in-house trainers completed their training
and will complement the existing network of trainers. The learning centre makes it possible to
train new employees, to refresh or gain knowledge, to practice sales skills and to acquaint
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.
The traditional competition for Best Seller was once again held in person at the point of sale,
where sales skills were demonstrated in front of random customers. 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.
Coaching culture is already a recognised way of developing sales teams. The network of
internal coaches ensures that the knowledge and skills acquired in classroom training are
transferred into daily practice. Each sales channel has assigned coaches for whom we have

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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.
As part of Open Space, we organised 43 different online events, thematically related to
occupational health, knowledge, skills, sustainability and current projects, plus 10 events for
our colleagues on the Croatian market. The events were organised as live online
presentations, and the recordings are available to all employees in the archive in the cloud.
The e-learning room is richer for the mojeznanje.si web portal, which is available to all
employees, and the Udemy learning platform, which can be accessed by individuals according
to their professional or personal development needs.
Memberships in many professional organisations in the region also offer many educational
benefits, allowing professionals to network and share knowledge.
20.7 Petrol has a full Family Friendly Enterprise certificate
Petrol d.d., Ljubljana has a full Family Friendly Enterprise certificate, for which we received
the decision to maintain full certification for the next three years in February 2022, following a
successful audit. The programme associated with this certificate includes a range of activities
designed to maintain a balance between personal and professional life.
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. To everyone’s delight, after two years of measures to combat the COVID-19 epidemic,
the Christmas show for our employees' children with Santa Claus was performed live again. In
December, we also organised ice-skating for Petrol employees and their families at three
different ice-skating rinks in Slovenia.
In 2022, for the sixth year in a row, we organised the Petrol Family Day with a varied
programme, this time in cooperation with the AMZS Safe Driving Centre in Vransko. Over 680
Petrol employees and their family members responded to the invitation to Sunday’s
gathering. The children’s programme was dedicated to road safety and entertained both adults
with skill drives on the obstacle course and children with learning about electric scooters and
bicycles. We enjoyed a rich programme of activities and a presentation of the quality of Petrol
fuels.
20.8 Petrol volunteers and humanitarian projects
With corporate volunteering called 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 since
2014.
In 2022, we once again extended our helping hand to the Moste Polje Association of Friends
of Youth. As part of Petrol’s Santa Claus campaign, employees in Slovenia collected 208
New Year’s presents for children from disadvantaged backgrounds.

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20.9 Healthy at Petrol programme
In 2022, we focused on a variety of topics in our Healthy at Petrol programmes. In the Open
Space we discussed the impact of hormonal imbalances on our lives, touched on healthy
eating during COVID-19, looked at how to properly support our immune systems and how to
stay healthy with a spring detox. In March, we hosted doctors from the Oncology Institute to
discuss the hidden dangers of cervical and ovarian cancer and the importance of early
symptom detection. In the context of cardiovascular risk factors, which are the leading cause
of morbidity and mortality in adults, we focused on high blood pressure, high blood sugar and
high blood fats, and how to significantly reduce the risks. In October, we focused on breast
cancer prevention in women and the importance of regular monthly self-examination. In
Ljubljana, we conducted a fast walking test with individual consultations with experts. Due to
the high level of interest, we have expanded the tests and launched them regionally throughout
Slovenia as part of the Connected in Awareness programme.
As part of the Connected in Awareness programme, we conducted three more major regional
events:
nordic walking courses, which were organised in 13 locations across Slovenia. In October
we encouraged employees to get moving again, this time in the spirit of charity. In the
event, entitled “Walking and Running to Support Women’s Health”, we managed to run or
walk a total of 1,437 kilometres between 10 and 31 October, 206 km more than the previous
year, to support and raise breast cancer awareness;
in December, we gave employees and their families a chance to skate at several major ice
rinks.
In 2022, we continued to promote short active work breaks which took place:
twice a week in the form of guided active breaks using the Feldenkrais for Business
method; and
once a week in the form of guided exercises, via a link to a video of the exercise.
At the same time, employees also had constant access to an in-house e-library, where they
could watch short 2-, 5-, 7- or 10-minute videos with exercises to relieve the stress on the
spine, joints and muscles that are most stressed during work.
During the summer months, the Petrol Tennis League took place, and in December we also
held a programme where we discussed relationships and their impact on health.
As in the past two years, we provided individual counselling sessions with mental health
counsellors and psychological support for victims of violence at points of sale.
A large part of our activities in 2022 was dedicated to the preparation and communication of
additional measures to prevent the spread of COVID-19 infections and other respiratory
illnesses and to ensure the safety of our employees as much as possible, as infections were
still occurring.
20.10 Organisational climate, satisfaction and commitment of Petrol Group employees
In 2022, after two years, we again measured the organisational climate, satisfaction and
commitment of Petrol Group employees. The survey has been helping us to systematically

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identify our strengths and areas for improvement on which to build further development since
2001.
The survey covered 5,319 employees of the Petrol Group. 3,052 employees provided their
answers to the questionnaire and comments, representing a 59 percent participation rate.
The organisational climate among Petrol Group employees in 2022 was slightly higher than
the average rating of employees in other Slovenian organisations, while satisfaction was rated
at the same level. The highest-rated categories of organisational climate were employee
attitudes towards quality, innovation and initiative, internal relations and motivation, and
employee commitment. Employee satisfaction is driven by job stability, colleagues, line
managers and working hours. Opportunities for improvement were identified in the areas of
remuneration and career development, which were among the lowest-scoring areas.
The results of the engagement measurement showed the same level of engagement as in
other Slovenian organisations.
20.11 Internal communication and bringing people together
Development and communication of a corporate culture 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, which we run as part of our programmes The Energy of Our Growth, The
Energy of Our Responsibility and Our Energy Connects.
In 2022, in support of the implementation of the strategy, we continued with activities to connect
a network of internal change ambassadors, who deepened the understanding of the strategy
through their involvement in strategic initiatives. This way, management also obtains valuable
feedback from employees, strengthens dialogue and gains a broader understanding of work
areas. As part of internal communication in the area of building a desired employer, we
presented the stories of our employees again in 2022 to consolidate the Company’s
organisational culture, showcase jobs, networking stories and the stories behind the different
faces and accomplishments and stories of creativity through staff profiles. Creativity was also
boosted through internal contests, stories of courage and bringing people together. A more
visible linking campaign in the strengthening of functional organisation, which was introduced
across the region in early 2022, is the sharing of information about Petrol’s regional presence
with the slogan Energy is us, together.
In internal journals, we presented managerial, organisational, process and business changes
in more detail. A large part of our activities was devoted to communicating the changes to
employees in the Croatian market, where, during the integration process of Crodux derivati
dva d.o.o. into Petrol d.o.o., we set up a communication portal page Energija smo mi,
zajedno, which aims to engage and connect employees. We shared all the relevant
information and news on integration on the portal and organised several discussions and
training events. In 2022, we also published on this portal all information related to the COVID-
19 epidemic, from measures to prevent the spread of the virus to teleworking.

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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 is successfully keeping up with the changes. We look for solutions that are healthier and
safer for our employees.
All the 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 for 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 the staff in the Petrol Group.
Particular attention is devoted to co-workers with reduced working capacity.
Considerable attention is also paid 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:
In 2022, the Petrol Group conducted 121,876 pedagogical hours of training and recorded
31,709 participations.
Petrol has a full Family Friendly Enterprise certificate.

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21. Responsibility towards customers
In the 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.
Establishing and caring for customer relationships is our priority, and with new digital
channels, an expanded range of energy products 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 for future growth
By providing an excellent experience, we develop customer relationships, increase loyalty,
promote ambassadorship, 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, and the importance and intertwining of points of contact.
For years, the Petrol Group 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.
In the Petrol Group, 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 are key elements in all
categories/areas, are as follows:
accessibility and orderliness of points of sale and toilets;
friendly and professional staff;
fast and easy services;
rewarding customer loyalty;
complaint handling.
All these 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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The market situation, both in energy products and fuels, where we faced high price increases
and supply difficulties in 2022, and in energy solutions, where we faced high demand from all
suppliers, is reflected in the changed expectations of our clients and customers.
21.2 Maintaining customer satisfaction
The satisfaction survey is one of the key strategic research activities that we have been
implementing at Petrol for a number of years in a row, which provides a deeper insight into the
customer, their expectations and satisfaction, which in turn is an important source for defining
activities to improve the customer experience and thus increase customer satisfaction.
Despite the difficult market conditions in 2022, we have maintained Petrol customer
satisfaction at most points of contact at a high level.
The 2022 Customer Satisfaction Survey, conducted for the 4
th
year in a row, shows that price
has the biggest impact on final customer satisfaction, with price increasing in importance
in 2022. The rising prices of energy products and fuels and the general increase in prices that
consumers and customers faced in 2022, even outside our business areas (general inflation),
had an impact on poorer consumer sentiment, which in turn led to a widespread drop in
satisfaction in other segments. The most noticeable drop in satisfaction was in the energy
product segment, where there was also a drop in other providers, while the greatest stability
and high level of satisfaction over time was achieved in the digital channels (apps, online shop)
and in the contact centre, which is one of the key points of contact for customer care.
In 2022, we measured the satisfaction of Petrol’s customers and the customers of competitors
in key areas of the Croatian market. The highest satisfaction in the Croatian market was
expressed by users of the Petrol Contact Centre and Petrol e-charging stations, while Petrol
is considered by customers to be the best among all the competitors at resolving complaints.
User experience, Petrol’s strongest dimension, is becoming increasingly important.
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
ourselves last year, all with the aim of realising the Petrol Group’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 2022. Excellent
user experience and emotional imprint are becoming increasingly important, with the
2022 measurement showing the highest growth in importance on these two dimensions.
User experience has proven to be Petrol’s biggest advantage for many years. In 2022, we
have strengthened it further.

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Petrol brand image by dimension, 2022 vs. 2021
Source: Brand Strength Survey 2022 and 2021, general public, Slovenia; n = 1,000.
Growth in preference as a result of excellent user experience
In the SEE markets, where the Petrol Group is not the leading player, our strongest dimension
remains our User Experience, and by far the highest awareness among all the assessed
attributes is achieved by the friendliness of our employees.
In all markets (with the exception of Serbia), Petrol has significantly improved its preference
4
rate, which generally reflects a good customer experience. Compared to 2021, 9 percent more
of the general public in Slovenia, where we have held the leading position for many years,
would choose Petrol over a competitor, given all the available service stations.
Petrol’s preference by market - growth index in 2022 compared to 2021
Source: Brand Strength Survey 2022 and 2021, general public Slovenia, Croatia, Serbia, Bosnia and Herzegovina
and Montenegro; n => 1,000.
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 more improved Dual Action Technology, developed
4
Preference: You are in a situation with service stations from different companies available. Which one would you
choose?

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by Afton Chemical from the United Kingdom. We supported the launch of the improved Q Max
fuel formula in all markets where the Petrol Group’s sales network is present with excellent
communication. As a result, we have increased awareness that Petrol has service stations
with quality fuel by 8 percent in 2022.
21.3 Monitoring and responding to customer comments
We have been measuring transaction satisfaction for several years using the internationally
established tNPS (Transactional Net Promoter Score) index. It enables us to monitor and
respond to customer feedback on a daily basis on all the key contact points of Petrol the
entire retail network, TipStop Vianor service workshops, the call centre and customer support,
complaints, the Petrol Energy Centre and online shop, where customers give their score after
purchase and after picking up a parcel at the service station. In 2022 we received more than
26 thousand ratings. In 2023, we are expanding the measurement of tNPS 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. The
Petrol Group 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, with a moderation in growth over the last two years.
We entered 2022 in the spirit of the epidemiological situation and related measures, such as
checking the RVT condition and other measures that both businesses and consumers had to
follow until mid-February. The year then continued with emergency situations on the energy
products and fuel markets, the outbreak of the war in Ukraine, which resulted in high inflation
and price increases, as well as supply problems in the energy products and fuel markets. All
of this has had the effect of increasing consumer sensitivity and concern, which is also evident
in the responses we regularly monitor through the tNPS survey. As already shown in some
areas in the Satisfaction Survey, the tNPS survey has shown a moderation in the growth in
satisfaction, which has remained at a high level for the last two years.
Importance growth index by brand image dimensions in 2022
Growth moderating over the
last 2 years and satisfaction
at a high level.

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Regardless of the circumstances and the difficult market conditions, which were particularly
evident in 2022, both in the fuel market and especially in the energy products market, more
than 80 percent of the customers are our promoters, who express high levels of satisfaction
with the friendliness and helpfulness of employees at service stations.
Analysis of the reasons to recommend Petrol
Source: Transaction Satisfaction (tNPS), 2022, n = 26,075.
We listen to the users and get to know their wishes and needs in detail
Most improvements and the 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 points and
test ideas and prototypes at all stages of development of a process, service or product.
With this kind of agile mindset and approaches to innovation and re-innovation, we have laid
the foundations for the renewal of our loyalty programme in 2022. In addition to end-customers,
we also invited Petrol employees to co-create, both at service stations and in office buildings.
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 co-create the image of the service station and
participate in the co-creation of the new advertising campaign
The Petrol’s Research Panel has been active in Slovenia since 2018. We have over 4,000
members in the community, with over 200 new members joining in the last year. They helped
us decide on the new look of the service stations, described their driving habits, co-created the
mobility package, evaluated the creative solutions in the pipeline and co-designed them
according to their feelings and perception of communication. We learned about their lifestyle
and values, and wanted to understand their ways of giving. One of the most important and in-
depth surveys was dedicated to the redesign of the Petrol Club loyalty programme, where we
also considered the opinions of our panellists.

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Source: Petrol Research Panel 2022: Driver mobility and the use of the Petrol Club card | Petrol
21.4 Brand loyalty Petrol Club
Despite the change in people’s mobility behaviour due to the energy crisis and the increase in
work from home, Petrol Club members remained active in 2022 in accessing and using the
benefits available to them in the Petrol Club. Membership of the Petrol Club is growing year
on year. Despite the widespread membership in Slovenia, the number of members of both
Petrol Club payment card holders and Petrol Club loyalty card holders has increased by 4
percent per year compared to 2021.
Golden Points remain the main currency of the Petrol Club and were accumulated on Petrol
Cards through purchases or rewarded actions by 16 percent more than in 2021. The share of
Golden Points redeemed in 2022 decreased by 9 percentage points due to the discontinuation
of the energy product rebates in the second half of the year, as a result of regulated sales
prices that were lower than the purchase prices of energy products.
In order to offer members of our loyalty family the best possible user experience and to make
it easy for them to understand what they can redeem their Golden Points for, in 2022 we
continued with direct communication via email and SMS, joined by more content-rich
messages via the Viber app and notifications in the “Na poti” mobile application. Indirect
communication with our customers continued to take place through our and our partners’ social
networks and advertising. We also continued publishing the Petrol Club catalogues, which
have been enriched with new content, and we redesigned the Petrol Club website.
In addition to our regular messages, where we showcase the great deals on individual products
available for Golden Points in the online shop and in-store, we also send our members a
message once a month, where they can find in one place all the benefits and discounts
available to them in that month. We managed targeted emails more efficiently and segmented
our messages more effectively in 2022, achieving an increase of more than 23 percent in the
share of emails opened by users.

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Our members can also always check the applicable discounts and benefits available to them
at any given time on the updated www.petrol.si/petrol-klub website, whether concerning a
purchase in the Petrol eShop or at selected points of sale or partners. It also lists the
possibilities of donating Golden Points to a good cause and the benefits that are available to
members on the Petrol Club card in a given period. The latest issue of the Petrol Club
catalogue is also available on the website. Purchases with Golden Points represent on average
67 percent of the sale of goods and services from the Petrol Club catalogue.
2022 was marked by two strong donation campaigns. In the first one, at the beginning of 2022,
together with members of the Petrol Club, we collected Golden Points for young athletes from
socially disadvantaged backgrounds as part of the Beijing Winter Olympics and, thanks to the
overwhelming response, the Botrstvo v športu programme was awarded a total of EUR
25,000. We continued collecting Golden Points for a good cause in December 2022, inviting
Petrol Club members to help the clown doctors, the Red Noses. With the help of our
customers, we have donated EUR 20,000 to inspire courage and joy in Slovenian hospitals
and nursing homes.
The “Na poti” app has become even more user-friendly; in addition to simply paying for fuel
without entering the service station, the biggest increase in usage has been in the donation of
Golden Points. A quarter of all those who donated their Golden Points to the Red Noses did
so via the “Na poti” app. At the end of 2022, 12 percent more Petrol Club members were using
the “Na poti” app than the year before. In-app payments with the Petrol Club payment card are
also on the rise. The number of users making payments with their card was 5 percent higher
in 2022 than in 2021.
21.5 Petrol’s customer support and Contact Centre
At Petrol’s Customer Support and Contact Centre, we take care of both retail and business
customers. We are available to them through different communication channels all year round.
The most popular communication channels are phone and email, but customers are
increasingly contacting us via web chat, chatbots, mobile apps and video calls.
21.6 Customer claims and complaints handling
Meeting our customers’ expectations and satisfaction are key principles in our work, which is
why we strive for simplicity and high-quality service. To this end, we regularly evaluate
customer satisfaction through various surveys and methods. The goal in this area remains
unchanged - to maintain a high level of customer satisfaction. We also have a system for
capturing customer feedback (suggestions, comments, compliments) in place, which we
regularly analyse and use to make improvements in all areas of our business. In 2022,
significant attention was placed on process efficiency and making the best use of IT tools. We
have therefore continued to make procedural and IT improvements to the handling of
complaints. In addition, we have focused on unifying customer support processes and
standards, as well as functional accountability across Petrol Group companies, to ensure a
high level of service across the Group. We will continue to focus on these activities in 2023.

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HIGHLIGHTS:
Despite the difficult market conditions in 2022, we have maintained Petrol customer
satisfaction at most points of contact at a high level.
The highest satisfaction in the Croatian market was expressed by users of the Petrol Contact
Centre and Petrol e-charging stations, while Petrol is considered by customers to be the
best among all the competitors at resolving complaints.
Excellent user experience and emotional imprint are becoming increasingly important, with
the 2022 measurement showing the highest growth in importance in these two dimensions.
We increased the awareness that Petrol has service stations with quality fuel by 8 percent
in 2022.

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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 our 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
to 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 they 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 into the air
In the Petrol Group, caring for the quality of the 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 into the air that are regulated by law and we monitor
them as legally required.
Noise emissions
Petrol carries out the operational monitoring and professional assessment of noise pollution in
individual areas to reduce the nuisance of noise and to implement certain measures for its
reduction. These activities are carried out in accordance with the Decree on limit values for
environmental 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. When a
connection to a sewage network is not available, small treatment plants are installed. Some

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sites, however, still use cesspits, which are maintained on a regular basis. At these sites,
cesspits are being discontinued according to the schedule in accordance with the 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 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 the 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 follow 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.
New eco-vehicle for cleaning petroleum product tanks
In 2022, Petrol became the proud owner of a new eco-vehicle. It is a vacuum tanker designed
to clean petroleum product tanks at Petrol’s storage facilities and points of sale, equipped with
the latest technology to make our work safer, better and with a smaller carbon footprint. The
vehicle, which cost almost half a million euros, consists of a Volvo chassis and bodywork
manufactured entirely in Slovenia by Vozila Fluid d.o.o. from Ajdovščina, with Petrol experts
involved in the design and production. They used their expertise to design the project, technical
solutions and adaptations to the equipment, and to supervise production. The result of this
collaboration is a unique vehicle, fully tailored to Petrol’s needs.

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Built to ADR (Agreement concerning the International Carriage of Dangerous Goods by Road)
specifications, the new eco-vehicle is suitable for pumping, cleaning, vacuuming and
transporting hazardous liquids. At the same time, it is equipped with all the safety and
technological equipment for refuelling at petroleum product storage facilities, which
significantly facilitates and speeds up the commissioning of metering lines after construction,
reconstruction or annual maintenance. The vehicle can also be used in the event of
environmental accidents involving petroleum products.
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 ambient 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 direct the light where it is
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, the
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
protection against natural and other disasters, and 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 2022, the month of fire safety, in Petrol’s office buildings, at service stations and at
fuel storage facilities.
In 2022, 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.

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More information about our environmental actions in 2022 will be presented in the next
Sustainability Report of the Petrol Group, which is expected to be released in June 2023.
HIGHLIGHTS:
At service stations and fuel storage facilities, we have installed systems for the closed
loading of storage tanks.
Adequate wastewater status is ensured through the planned and systematic installation of
modern treatment plants and oil traps.
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 d.d., Ljubljana 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 storing renewable
energy sources.
In the Petrol Group, ensuring the maximum quality is a fundamental principle of our operations.
Thanks to our specialist services and support, we maintain our status as a leading energy
company in Slovenia, which has an important impact on the development and introduction of
new technologically 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), plays an important role in this process. At
the end of the year 2022, Petrol Laboratory had 52 accredited test methods for petroleum
product testing.
Operating as part of Petrol d.d., Ljubljana 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 inspections) 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.
Petrol d.d., Ljubljana is one of the first energy companies in Europe to receive the European
quality certificate (EQTM), awarded by the European Organization for Quality (EOQ), for the
Q Max family of fuels. To obtain certification, specific requirements are needed, both for the
product and for the Company.
Overview of certificates and accreditations
* Based on the Report on the implementation of the Responsible Care Global Charter commitments, Petrol d.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.
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
EQTM, 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

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** Petrol d.d., Ljubljana is a holder of an FSC certificate for FSC certified product sale. 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.
*** 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.
Q Max quality guarantee of Petrol fuels
With advanced solutions in the field of fuel additives, Q Max ensures that the interiors 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 under the most
unfavourable climatic conditions (low temperatures).
In 2022, in the field of Q Max fuel development, Petrol continued to adapt fuels to better
environmental acceptability by selecting and including modern sustainably produced
ingredients, which can further reduce the negative effects of fuels on the environment and
potential effects on global warming.
HIGHLIGHTS:
Thanks to our highly qualified professional services, supportive monitoring of innovations
and market requirements, 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.
In 2022, Petrol Laboratory again expanded its range of accredited methods.
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
In our business and social activities, we want to actively influence and help solve
environmental, social and other challenges in the environment in which we live and operate.
In 2022, 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 the region. We
sponsor individuals, clubs, associations and sports events at the national and international
levels. By supporting sports and the 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 stands out. We have been sponsoring
national teams of all ages for many years. We are also a personal sponsor of some of the best
athletes in these winter sports, including Žan Kranjec, Jakov Fak, Žan Košir and the promising
young biathletes Alex Cisar and Lena Repinc. In 2022, we also traditionally sponsored the
Pokljuka biathlon world cup competition, and the Rogla snowboarding world cup competition,
the New Year’s Eve Girls’ Ski-Jumping Tournament in Ljubno and the FIS Ski-Flying World
Championship Finals in Planica.
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, the Gymnastics
Association of Slovenia and many larger and smaller clubs, including the Cedevita Olimpija
Basketball Club, the Jesenice Hockey and Skating Association, the Bravo Football club, the
"Z`Dežele" Sankaku Celje Judo club, the Domžale Helios Suns Basketball club, the Branik
Maribor Tennis club, the Ježica Women’s basketball club, the Dobovec Futsal club and other
smaller sports teams.
As in the winter, we supported several major sporting events, including the biggest sporting
event to be held in Slovenia in 2022 - the Men’s Volleyball World Championships. In addition,
as the largest sponsor and thus also the name holder, we have supported the Petrol Q Max
Petrol Ilirska Bistrica Mountain Speed Race, as well as several smaller sporting events such
as the Triglav Run, Active Posočje 2022, the Four Bridges Run, and the Sporto Conference.
In addition to the above-mentioned winter athletes, the Petrol Group is a personal sponsor of
the regular Dakar Rally participant and motocross rider Simon Marčič, triathlete Denis Šketak
and promising young tennis player Maša Viriant. Our 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 (24
th
Energy Managers’ Days, 27
th

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Slovene Marketing Conference, 24
th
Portorož Business Conference, 4
th
Local E-mobility
Conference, Slotrib 22, GS1, 16
th
and 17
th
Slovenian Economy Summit, 13
th
International
Conference “Corporate Security Days 2022”, 18
th
European Energy Market Conference,
Energy and Environment 22, 24
th
SKOJ, 16
th
Strategic Trade Conference, BledCom 2022, 23
rd
Days of Conservation Science, Bled Strategic Forum 2022, 11
th
International Conference IIA
Slovenia and others).
In the arts segment, we have been cooperating with the Ljubljana Festival and the Lent Festival
for many years, and we also support cultural events taking place in Ljubljana City Theatre,
Cankarjev Dom (The Magnificent 7 season tickets) and Slovenia’s other cultural institutions,
and we have also supported the cultural events Vinska vigred 2022 and Jurjevanje 2022.
We were also active as a sponsor in the region in 2022. In Croatia, we sponsored the Croatian
Olympic Committee (HOO), the Zadar Basketball Club and SOC - Supercars Owner Circle. In
Bosnia and Herzegovina, we supported the “Naš Tim” ski club. In Serbia, we sponsored the
“Lokomotiva” Tennis Club and the Arena Niš Football Club last year.
24.2 Humanitarian projects
Part of our social footprint are corporate volunteering activities, which we have been nurturing
since 2012 and through which we give back to society through our volunteer work, knowledge
and increasing material aid. In 2022, 85 employees from Slovenia took part in nine work
campaigns in the Corporate Volunteering Week We Give Back To Society. Petrol contributed
170 work hours in these work campaigns, with volunteers contributing another 170 of their own
volunteer hours.
2022 marked the twelfth 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 about the importance of blood donation throughout Slovenia, invite new blood
donors and inform existing donors about healthcare needs.
In 2022, we also celebrated the twelfth 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 200 euros. Through this project, we
have supported a total of 129 different humanitarian projects implemented by non-profit
organisations. As part of this project, we have donated a total of more than EUR 750,000 to
local humanitarian projects in twelve years.
In 2022, we extended our helping hand to the Moste-Polje Association of Friends of Youth. As
part of Petrol’s Santa Claus campaign, employees in Slovenia collected 208 New Year’s
presents for children from disadvantaged backgrounds.
In 2022, we also supported several projects in the region with donations. In Slovenia, the
Glassy Classy bottles project raised over EUR 1,700 for the Miroslav Cerar Foundation,
which supports athletes from socially disadvantaged backgrounds. Through the collection of
Golden Points, we have donated EUR 20,000 to the Red Noses and through the Ski Cents
campaign, we raised over EUR 44,000 by the end of 2022, which we will donate to the
Slovenian Ski Association for young ski hopefuls.

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In Croatia and Serbia, a total of EUR 50,000 was donated to the Dubrava Clinical Hospital in
Zagreb, the Biokovo Fire Brigade, the Dinara, Zagora and Arena Niš football clubs, the Sveti
Ivan and Ogulin motorcycle clubs and the Spužvar Sailing Club.
HIGHLIGHTS:
The Petrol Group has been a major supporter of sport in Slovenia and in the region for a
number of years.
In 2022, we celebrated the twelfth anniversary of the Our Energy Connects project, in which
funds earmarked for business gifts are given to charity.

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THE PETROL GROUP

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25. Companies in the Petrol Group
As at 31 December 2022, the Petrol Group diagram does not include inactive companies.
The Petrol Group, 31 December 2022
Fuels and
petroleum
products
Merchandise
and services
Energy and
solutions
Other
The parent company
Petrol d.d., Ljubljana
l l l l
Subsidiaries
Petrol d.o.o. (100%)
l l l l
Petrol javna rasvjeta d.o.o. (100%)
l
Adria-Plin d.o.o. (75%)
l
Petrol BH Oil Company d.o.o. Sarajevo (100%)
l l l
Petrol d.o.o. Beograd (100%)
l l l
Petrol Lumennis PB JO d.o.o. Beograd (100%)
l
Petrol Lumennis VS d.o.o. Beograd (100%)
l
Petrol Lumennis ZA JO d.o.o. Beograd (100%)
l
Petrol Lumennis ŠI JO d.o.o. Beograd (100%)
l
Petrol KU 2021 d.o.o. Beograd (100%)
l
Petrol Lumennis KI JO d.o.o. Beograd (100%)
l
Petrol Crna Gora MNE d.o.o. (100%)
l l
Petrol Trade Handelsges.m.b.H. (100%)
l
Beogas d.o.o. Beograd (100%)
l
Petrol LPG d.o.o. Beograd (100%)
l
Tigar Petrol d.o.o. Beograd (100%)
l
Petrol LPG HIB d.o.o. (100%)
l
Petrol Power d.o.o. Sarajevo (99.7518%)
l
Petrol-Energetika DOOEL Skopje (100%)
l
Petrol Bucharest ROM S.R.L. (100%)
l
Petrol Hidroenergija d.o.o. Teslić (80%)
l
Vjetroelektrane Glunča d.o.o. (100%)
l
IG Energetski Sistemi d.o.o. (100%)
l
Petrol Geo d.o.o. (100%)
l
EKOEN d.o.o. (100%)
l
EKOEN S d.o.o. (100%)
l
Zagorski metalac d.o.o. (75%)
l
Mbills d.o.o. (100%)
l
Atet d.o.o. (72.96%; 76% voting rights)
l
Vjetroelektrana Ljubač d.o.o. (100%)
l
E 3, d.o.o. (100%)
l
STH Energy d.o.o. Kraljevo (80%)
l
Petrol - OTI - Terminal L.L.C. (100%)
l
Geoplin d.o.o. Ljubljana (74.34%)
l
Geocom d.o.o. (100%)
l
Geoplin d.o.o., Zagreb (100%)
l
Geoplin d.o.o. Beograd (100%)
l
Zagorski metalac d.o.o. (25%)
l
Jointly controlled entities
Geoenergo d.o.o. (50%)
l
Soenergetika d.o.o. (25%)
l
Vjetroelektrana Dazlina d.o.o. (50%)
l
Associates
Plinhold d.o.o. (29.6985%)
l
Aquasystems d.o.o. (26%)
l
Knešca d.o.o. (47.27% of the company is owned by E 3, d.o.o.)
l

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26. The parent company
PETROL, SLOVENSKA ENERGETSKA DRUŽBA, D.D., LJUBLJANA
President of the Management Board: Nada Drobne Popović; Members of the Management
Board: Matija Bitenc, Jože Bajuk, Jože Smolič; Member of the Management Board and Worker
Director: Zoran Gračner
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
principal activity is selling fuels and petroleum products, merchandise and services, and
energy and solutions.
With its 318 service stations, it has a 56 percent share of the Slovenian retail market in
petroleum products.
In 2022, the company Petrol d.d., Ljubljana generated EUR 7.3 billion in sales revenue, which
is 106 percent more than in 2021, mainly due to the higher prices of oil, electricity and other
energy products, as well as good sales of fuels and petroleum products.
Petrol d.d., Ljubljana’s sales revenue was generated through the sale of:
3.5 million tons of fuels and petroleum products, up 34 percent relative to 2021,
merchandise and services in the amount of EUR 358.5 million, down 7 percent relative to
2021,
0.8 TWh of natural gas to end-customers, up 6 percent relative to 2021,
1.8 TWh of natural gas to end-customers, down 9 percent relative to 2021,
117.2 thousand MWh of heat, down 7 percent relative to 2021.
Operating costs totalled EUR 301.4 million, which is 4 percent less than in previous year. The
costs of materials totalled EUR 28.6 million, up 20 percent relative to 2021, mainly due to the
increase in energy prices. The costs of services stood at EUR 136.1 million, an increase of 19
percent compared to the year before, with the largest increase in the cost of transport services
due to the strong sales of fuels and petroleum products. The costs of work stood at EUR 82.1
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 28 thousand (in the amount of
EUR 0.4 million in 2021) and recorded this exemption as a decrease in labour costs.
Depreciation totalled EUR 46.5 million, on a par with the previous year. Other costs amounted
to EUR 8.1 million.
Other operating revenue stood at EUR 6.4 million, which was 29 percent more than in 2021.
The gain on derivatives totalled EUR 525.1 million or 95 percent more than in 2021. Other
operating expenses, stood at EUR 0.03 million. Loss on derivatives totalled EUR 551.3 million
or 133 percent more than in 2021.

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The company’s net profit totalled EUR 17.9 million, a decrease of EUR 68.2 million from 2021.
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 1.7 million, a decrease of EUR 1.6 million relative to 2021. Net finance expenses
stood at EUR -1.7 million.
In 2022 Petrol d.d., Ljubljana’s net profit on derivatives was down by EUR 2.0 million and EUR
3.4 million lower loss from net exchange rate differences relative to 2021. In 2022, there were
no impairments of investments and goodwill. Net interest expenditure amounted to EUR 5.9
million, on a par with the previous year. Loss allowances for financial receivables reversed
were EUR 0.3 million higher compared to 2021. Net other finance income was up EUR 2.6
million in 2022 compared to 2021.
Pre-tax profit totalled EUR 17.8 million or EUR 65.6 million less than in 2021. The net profit of
Petrol d.d., Ljubljana for the year 2022 stood at EUR 19.4 million, down 47.1 million relative to
2021. The total assets of Petrol d.d., Ljubljana as at 31 December 2022 equalled EUR 2.1
billion, which was 13 percent more than on 31 December 2021. Of this, non-current assets
amounted to EUR 1.2 billion, which is 3 percent less than on 31 December 2021. Current
assets amounted to EUR 921.5 million, which is 42 percent less than on 31 December 2021,
mainly due to higher operating receivables.
The equity of Petrol d.d., Ljubljana as at 31 December 2022 equalled EUR 598.0 million, which
was 2 percent less than at the end of 2021.
Petrol d.d., Ljubljana
(EUR million)
2022 2021
2022/2021
Index
Adjusted gross profit 339.1 360.5 94
Labour costs, including government grants 82.1 78.3 105
Labour costs, excluding government grants 82.2 78.7 104
EBITDA, including government grants 67.4 147.0 46
EBITDA, excluding government grants 67.4 146.6 46
Pre-tax profit, including government grants 17.8 83.4 21
Pre-tax profit, excluding government grants 17.8 83.0 21

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27. Subsidiaries
THE PETROL ZAGREB GROUP
President of the parent company’s Management Board: Simona Kostrevc (since 1 December
2022), Boris Antolovič (until 30 November 2022); Members of the parent company’s
Management Board: Vladimir Kuzmič, Niko Knez (since 1 December 2022); Procuration
Holder of the parent company: Jože Smolič
E-mail: simona.kostrevc@petrol.si
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, Petrol d.o.o. purchased Crodux Plin d.o.o.’s LPG operations,
while in January 2020, it acquired its electricity-trading operations. In October 2021, Petrol
d.d., Ljubljana, after fulfilling the suspensive conditions, completed the acquisition of a 100
percent interest in the company 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. The Petrol Zagreb
Group is active on the Croatian market in the sale of fuels and petroleum products,
merchandise and services, and energy and solutions.
On 2 November 2022, Crodux derivati dva d.o.o. was merged into Petrol d.o.o.
In 2022, the Petrol Zagreb Group sold 1,228.9 thousand tons of fuels and petroleum products,
up 41 percent on the previous year. In 2022, the Petrol Zagreb Group generated a total of EUR
1,484.5 million in sales revenue, which is 102 percent more than in 2021. The Group generated
EUR 1,507.9 million of sales revenue from the sale of fuels and petroleum products, EUR
136.4 million from the sale of merchandise and services and EUR 35.8 million from energy
and solutions. Its operating profit stood at EUR 0.3 million in 2022, a decrease of EUR 30.3
million from the previous year. The Group’s net profit for 2022 totalled EUR -4.3 million, a
decrease of EUR 24.8 million from 2021. The Petrol Zagreb Group operated 202 service
stations at the end of 2022. The group’s equity totalled EUR 243.9 million as at 31 December
2022.
PETROL BH OIL COMPANY D.O.O. SARAJEVO
General Manager: Gregor Žnidaršič; Procuration Holder: Bojan Košir
E-mail: gregor.znidarsic@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
The company’s principal activity is selling fuels and petroleum products, merchandise and
services in Bosnia and Herzegovina.
In 2022, the company sold 191.5 thousand tons of fuels and petroleum products, up 1 percent
on the previous year. In 2022, Petrol BH Oil Company d.o.o. Sarajevo generated a total of
EUR 236.0 million in sales revenue, which is 75 percent more than in 2021. The Group
generated EUR 208.6 million of sales revenue from the sale of fuels and petroleum products
and EUR 11.4 million from the sale of merchandise and services. Its operating profit stood at
EUR 4.6 million in 2022, an increase of EUR 1.4 million from the previous year. The company’s
net profit for 2022 totalled EUR 3.8 million, an increase of EUR 0.3 million from 2021. Petrol

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BH Oil Company d.o.o. Sarajevo operated 42 service stations at the end of 2022. The
company’s equity totalled EUR 72.9 million as at 31 December 2022.
THE PETROL BEOGRAD GROUP
General Managers of the parent company: Uroš Bider, Miljko Vlačić; Procuration Holder: Aleš
Zupančič
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 and 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., Petrol KU 2021 d.o.o. and Petrol
Lumennis KI JO d.o.o., which are engaged in public lighting projects in Serbia. The Petrol
d.o.o. company’s principal activity is selling fuels and petroleum products, merchandise and
services in Serbia.
The volume of fuels and petroleum products sold in 2022 totalled 112.8 thousand tons, up 5
percent from the previous year. In 2022, the Petrol Beograd Group generated a total of EUR
132.5 million in sales revenue, which is 80 percent more than in 2021. The Group generated
EUR 125.5 million of sales revenue from the sale of fuels and petroleum products and EUR
4.5 million from the sale of merchandise and services. Its operating profit stood at EUR 4.2
million in 2022, an increase of EUR 0.6 million from the previous year. The company’s net
profit for 2022 totalled EUR 3.2 million, on a par with the previous year. Petrol d.o.o. Beograd
operated 17 service stations at the end of 2022. The company’s equity totalled EUR 35.4
million as at 31 December 2022.
PETROL CRNA GORA MNE D.O.O.
General Manager: Tadej Zorjan; Procuration Holder: Ignac Rupar
E-mail: tadej.zorjan@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
The company’s principal activity is selling fuels and petroleum products, 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.
The volume of fuels and petroleum products sold in 2022 totalled 50.5 thousand tons, down 6
percent from the previous year. In 2021, Petrol Crna Gora MNE d.o.o. generated EUR 75.4
million in sales revenue, up 87 percent from 2021. The company generated EUR 58.1 million
of sales revenue from the sale of fuels and petroleum products and EUR 6.5 million from the
sale of merchandise and services. Its operating profit stood at EUR 2.0 million in 2022, an
increase of EUR 0.2 million from the previous year. The company’s net profit for 2022 totalled
EUR 1.7 million, an increase of EUR 0.5 million from 2021. Petrol Crna Gora MNE d.o.o.
operated 15 service stations at the end of 2022. The company’s equity totalled EUR 23.2
million as at 31 December 2022.

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THE GEOPLIN GROUP
Director-General of the parent company: Matija Bitenc (since 21 October 2022), Aleš Zupančič
(since 26 September 2022 until 20 October 2022), Vanja Lombar (since 3 January 2022 until
20 October 2022); General Manager of the parent company: Jože Bajuk (until 1 February 2022
and then since 21 October 2022); Procuration Holder of the parent company: David Štoka
(since 26 September 2022)
E-mail: matija.bitenc@geoplin.si
Ownership interest of Petrol d.d., Ljubljana: 74.34%
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 1978.
Its operations in the area of natural gas supply and services also extend abroad. To be able to
ensure a 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 2022, 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 2022, the Geoplin Group sold 19.4 TWh of natural gas, generating EUR 1,350.2 million in
sales revenue. The group’s net profit for 2022 totalled EUR -28.3 million. The net profit or loss
attributable to Petrol d.d., Ljubljana amounted to EUR -21.1 million. The group’s equity totalled
EUR 113.7 million as at 31 December 2022.
BEOGAS D.O.O. BEOGRAD
General Manager: Uroš Bider; Procuration Holder: Primož Kramer
E-mail: uros.bider@petrol.co.rs
Ownership interest of Petrol d.d., Ljubljana: 100%
Beogas d.o.o. Beograd is engaged in financing, designing and constructing distribution
pipelines, but it also distributes natural gas in the Belgrade municipalities of 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 516.3 km of gas distribution network and 13,464 active
gas connections.
In 2022, the company sold 362.6 thousand MWh of natural gas, up 1 percent on the previous
year. In 2022, it generated EUR 13.6 million in sales revenue, up 6 percent on the previous
year. The company’s operating profit stood at EUR 1.2 million in 2022, a decrease of EUR 1.2
million from the previous year. The company’s net profit for 2022 totalled EUR 1.1 million, a
decrease of EUR 0.9 million from 2021. The company’s equity totalled EUR 22.5 million as at
31 December 2022.

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THE PETROL LPG GROUP
General Managers of the parent company: 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 2022, the Petrol LPG Group sold 61.9 thousand tons of liquefied petroleum gas, down 13
percent on the previous year. In 2022, it generated EUR 48.5 million in sales revenue, a year-
on-year increase of 14 percent. The operating profit for 2022 totalled EUR 1.4 million, an
increase of EUR 1.2 million from 2021. The group’s net profit for 2022 totalled EUR 1.1 million,
which was EUR 1.3 million more than in the previous year. The group’s equity totalled EUR
11.7 million as at 31 December 2022.
PETROL GEO D.O.O.
General Manager: Štefan Hozjan; Procuration Holder: Borut Bizjak
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; the management and development of district heating systems based
on geothermal boreholes).
Petrol Geo d.o.o. generated EUR 4.0 million in sales revenue in 2022, up EUR 0.6 million on
the previous year. The company’s operating profit stood at EUR 2.4 million in 2022, an increase
of EUR 0.2 million from the previous year. The company’s net profit for 2022 totalled EUR 1.8
million, a year-on-year increase of EUR 0.5 million. The company’s equity totalled EUR 4.0
million as at 31 December 2022.
IG ENERGETSKI SISTEMI D.O.O.
General Manager: Barbara Jama Žival
E-mail: barbara.jama-zivalic@petrol.si
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, an agreement
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 EUR 45.1 million. The transaction was carried out in two parts: the first part was
completed in 2016 and the second part in May 2018.

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PETROL TRADE HANDELSGESELLSCHAFT M.B.H.
General Manager: Marko Malgaj; Procuration Holder: Tomaž Slavec (since 5 March 2022)
E-mail: marko.malgaj@petrol-trade.at
Ownership interest of Petrol d.d., Ljubljana: 100%
Petrol Trade Handelsgesellschaft m.b.H sells petroleum products in Austria and neighbouring
countries.
In 2022, the company sold 143.6 thousand tons of fuels and petroleum products. In 2022, it
generated EUR 160.3 million in sales revenue, up EUR 101.3 million from 2021. Its net profit
for 2022 totalled EUR 895.2 thousand. The company’s equity totalled EUR 2.5 million as at 31
December 2022.
VJETROELEKTRANE GLUNČA D.O.O.
General Managers: Borut Bizjak, Tomislav Benković
E-mail: borut.bizjak@petrol.si; tomislav.benkovic@petrol.hr
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 2022, it generated EUR 4.7 million in sales revenue, its net profit totalling EUR 0.9 million.
The company’s equity totalled EUR 12.7 million as at 31 December 2022.
PETROL HIDROENERGIJA D.O.O., TESLIĆ
General Manager: Aleš Weiss; Procuration Holder: Borut Bizjak (since 20 May 2022)
E-mail: ales.weiss@petrol.si; borut.bizjak@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 2022, the company generated EUR 735.6 thousand in sales revenue. Its net loss for 2022
totalled EUR 371 thousand. The net profit attributable to Petrol d.d., Ljubljana amounted to
EUR 297 thousand. The company’s equity totalled EUR 7.2 million as at 31 December 2022.
PETROL POWER D.O.O.
General Manager: Aleš Weiss; Procuration Holder: Borut Bizjak (since 18 January 2022)
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.

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In 2022, the group generated EUR 824.8 thousand in sales revenue. Its net loss for 2022
totalled EUR -36.7 thousand. The net loss attributable to Petrol d.d., Ljubljana amounted to
EUR -36.6 thousand. The company’s equity totalled EUR -1.9 million as at 31 December 2022.
MBILLS D.O.O.
General Manager: Leon Stare (since 30 June 2022), Primož Zupan (until 30 June 2022)
E-mail: leon.stare@petrol.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 2022, the company generated EUR 2.2 million in sales revenue. Its net loss for 2022 totalled
EUR -1.1 million. The company’s equity totalled EUR 3.4 million as at 31 December 2022.
EKOEN D.O.O.
General Manager: Igor Jogan; Procuration Holder: Zoran Gračner
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. On 29 December 2022 Ekoen GG d.o.o. was merged
into Ekoen d.o.o.
In 2022, EKOEN d.o.o. together with Ekoen GG d.o.o. generated EUR 557.1 thousand in sales
revenue. Its net loss for 2022 totalled EUR -10.4 thousand. The company’s equity totalled EUR
728.4 thousand as at 31 December 2022.
EKOEN S D.O.O.
General Manager: Igor Jogan; Procuration Holder: Zoran Gračner
E-mail: igor.jogan@petrol.si
Ownership interest of Petrol d.d., Ljubljana: 100%
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 2022, the company generated EUR 55.4 thousand in sales revenue. Its net loss for 2022
totalled EUR -4.9 thousand. The company’s equity totalled EUR 10.5 thousand as at 31
December 2022.

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ZAGORSKI METALAC D.O.O.
General Manager: Zdravko Čulig; Procuration Holder: Aleš Gruden
E-mail: zculig@zagorski-metalac.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 2022, it sold 198.1 million kWh of natural gas and distributed 248.6 million kWh of natural
gas. In 2022, the group generated EUR 11.1 million in sales revenue. Its net loss for 2022
totalled EUR -264,0 thousand. The company’s equity totalled EUR 8.8 million as at 31
December 2022.
E 3, D.O.O.
General Manager: Jože Smolič (since 30 November 2022), Darko Pahor (until 30 November
2022); Procuration Holder: Miha Vrbinc (since 3 January 2023)
E-mail: joze.smolic@petrol.si; miha.vrbinc@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 2022, E 3, d.o.o. sold 1,477 GWh of electricity and 7.4 GWh of heat. In 2022, the group
generated EUR 211.8 million in sales revenue. Its net loss for 2022 totalled EUR -2.3 million.
The company’s equity totalled EUR 12.2 million as at 31 December 2022.
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 2022, the company generated EUR 13.3 thousand in sales revenue. Its net profit for 2022
totalled EUR 7.1 thousand. The company’s equity totalled EUR 118.1 thousand as at 31
December 2022.

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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 2022, the company generated EUR 66.8 thousand in sales revenue. Its net profit for 2022
totalled EUR 15.9 thousand. The company’s equity totalled EUR -69 thousand as at 31
December 2022.
VJETROELEKTRANA LJUBAČ D.O.O.
General Managers: Borut Bizjak, Tomislav Benković, Slaven Tudić
Company Members: Petrol d.d., Ljubljana
E-mail: borut.bizjak@petrol.si; tomislav.benkovic@petrol.hr
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 2022, it generated sales revenues in the amount of EUR 4.2 million and net profit in the
amount of EUR 0.8 million. The company’s equity totalled EUR 8.2 million as at 31 December
2022.
ATET D.O.O.
General Managers: Matevž Kustec (until 3 March 2023), Robert Surina (since 5 January 2023),
Tomaž Novak (since 3 March 2023)
E-mail: matevz.kustec@atet.si, robert.surina@petrol.si
Ownership interest of Petrol d.d., Ljubljana for the 2022 financial year: 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. As of 12 January 2023, Petrol d.d., Ljubljana will acquire a further 23.04
percent interest in Atet d.o.o. and will become the 96 percent owner of Atet d.o.o. (100 percent
of voting rights). 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 2022, the company generated EUR 3.5 million in sales revenue. Its net loss for 2022 totalled
EUR 410.0 thousand. The net profit attributable to Petrol d.d., Ljubljana amounted to EUR
299.2 thousand. The company’s equity totalled EUR 2.6 million as at 31 December 2022.

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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, with regular operations starting in February 2022.
In 2022, the company generated EUR 210.1 thousand in sales revenue. Its net profit for 2022
totalled EUR 65.2 thousand. The net profit attributable to Petrol d.d., Ljubljana amounted to
EUR 52.1 thousand. The company’s equity totalled EUR 581.4 thousand as at 31 December
2022.
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 2022.

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28. Jointly Controlled Entities
GEOENERGO D.O.O.
General Managers: Verena Zidar, Mojca Logar (from 8 September 2022 until 8 March 2023),
Peter Hrastar (since 8 March 2023)
E-mail: verena.zidar@nafta-lendava.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 2022 totalled EUR
-299.4 thousand. The net profit for 2022, which belongs to the Petrol Group, totalled EUR
-149.7 thousand. The company’s equity totalled EUR 178.2 thousand as at 31 December 2022.
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 cogeneration in thermal power plants and nuclear power
plants. Its net loss for 2022 totalled EUR 3.7 million. The net profit for 2022, which belongs to
the Petrol Group, totalled EUR 0.9 thousand. The company’s equity totalled EUR 4.9 million
as at 31 December 2022.
VJETROELEKTRANA DAZLINA D.O.O.
Managers: Borut Bizjak, Slaven Tudić
E-mail: borut.bizjak@petrol.si;
Ownership interest of Petrol d.d., Ljubljana: 50%
The company’s principal activity is electricity generation from wind. The company did not yet
operate in 2022. At the end of 2022, the company’s equity totalled EUR -1.8 thousand.
29. Associates
AQUASYSTEMS D.O.O.
Ownership interest of Petrol d.d., Ljubljana: 26%
Activities: The 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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Table of Contents
Statement of the Management Board’s Responsibility ........................................................ 185
Independent auditor’s report ............................................................................................... 186
Financial statements of the Petrol Group and Petrol d.d., Ljubljana .................................... 199
Notes on the financial statements ....................................................................................... 205
1. Reporting entity ..................................................................................................... 205
2. Basis of preparation ............................................................................................... 205
3. Significant accounting policies of the Group .......................................................... 212
4. Significant accounting policies of the Company ..................................................... 233
5. Segment reporting ................................................................................................. 255
6. Notes on individual items in the financial statements ............................................. 258
6.1 Business combinations ................................................................................... 258
6.2 Changes within the Group ............................................................................... 260
6.3 Revenue ......................................................................................................... 261
6.4 Costs of materials ........................................................................................... 263
6.5 Costs of services ............................................................................................. 263
6.6 Labour costs ................................................................................................... 264
6.7 Depreciation and amortisation ......................................................................... 265
6.8 Other costs...................................................................................................... 266
6.9 Gain/(Loss) from derivatives ........................................................................... 266
6.10 Interests and dividends ................................................................................... 266
6.11 Finance income and expenses ........................................................................ 267
6.12 Income tax expenses ...................................................................................... 268
6.13 Earnings per share .......................................................................................... 270
6.14 Other comprehensive income.......................................................................... 270
6.15 Intangible assets ............................................................................................. 271
6.16 Right-of-use assets ......................................................................................... 276
6.17 Property, plant and equipment ........................................................................ 278
6.18 Investment property ........................................................................................ 281
6.19 Investments in subsidiaries ............................................................................. 282
6.20 Investments in jointly controlled entities .......................................................... 289
6.21 Investments in associates ............................................................................... 292
6.22 Financial assets at fair value through other comprehensive income ................ 294
6.23 Non-current loans............................................................................................ 295
6.24 Non-current operating receivables .................................................................. 296
6.25 Inventories ...................................................................................................... 296
6.26 Current loans .................................................................................................. 297
6.27 Current operating receivables ......................................................................... 298
6.28 Contract assets ............................................................................................... 299
6.29 Financial assets at fair value through profit or loss .......................................... 299
6.30 Prepayments and other assets ........................................................................ 299
6.31 Cash and cash equivalents ............................................................................. 300
6.32 Equity .............................................................................................................. 300

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6.33 Provisions for employee post-employment and other long-term benefits ......... 303
6.34 Other provisions .............................................................................................. 306
6.35 Long-term deferred income ............................................................................. 308
6.36 Financial liabilities ........................................................................................... 309
6.37 Lease liabilities ................................................................................................ 311
6.38 Non-current operating liabilities ....................................................................... 311
6.39 Current operating liabilities .............................................................................. 312
6.40 Commodity derivative instruments .................................................................. 312
6.41 Contract liabilities ............................................................................................ 313
6.42 Other liabilities ................................................................................................ 313
7. Financial instruments and risk management .......................................................... 313
7.1 Credit risk ..................................................................................................... 314
7.2 Liquidity risk .................................................................................................. 317
7.3 Foreign exchange risk .................................................................................. 321
7.4 Price and volumetric risk ............................................................................... 324
7.5 Interest rate risk ............................................................................................ 325
7.6 Capital management .................................................................................... 328
7.7 Carrying amount and fair value of financial instruments ................................ 329
8. Related party transactions ..................................................................................... 332
9. Contingent liabilities ............................................................................................... 336
10. Events after the reporting date ............................................................................... 337
11. Financial statements of Petrol d.d., Ljubljana by activity in accordance with the
Electricity Supply Act, the Gas Supply Act and the Heat Supply from Distribution Systems
Act ……………………………………………………………………………………………...338

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STATEMENT OF THE MANAGEMENT BOARD’S RESPONSIBILITY
The Company’s Management Board is responsible for the preparation and fair presentation of
the financial statements of the Petrol Group and Petrol d.d., Ljubljana, for the year ended 31
December 2022, including the related policies and notes, which, in its opinion, give a true and
fair view of the development and results of operations and the financial position of the
Company, together with a description of the principal risks to which the Company and other
companies included in the consolidated financial statements, taken as a whole, are exposed.
The Management Board confirms that the appropriate accounting policies have been applied
consistently in the preparation of the financial statements, that the accounting estimates have
been made on the basis of fair value, prudence and good governance, and that the financial
statements give a true and fair view of the state of affairs of the Group and the Company and
the results of their operations for the year ended 31 December 2022.
The Management Board is also responsible for keeping proper accounting records, for taking
reasonable precautions to safeguard property and other assets, and for certifying that the
financial statements, including the notes thereto, have been prepared on a going concern basis
and in accordance with the applicable law and International Financial Reporting Standards as
adopted by the European Union.
The Management Board accepts and approves the financial statements of the Petrol Group
and Petrol d.d., Ljubljana, including the related policies and notes, for the year ended 31
December 2022.
The tax authorities may audit the Company’s operations at any time within five years of the
end of the year in which the tax was due. This may result in additional liabilities for tax, interest
and penalties from corporate income tax (CIT) or other taxes and duties. The Company’s
Management Board is not aware of any circumstances that could give rise to a material liability
in this respect.
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 and Worker Director

Petrol d.d., Ljubljana, Dunajska cesta 50, 1000 Ljubljana, Slovenia
Ljubljana, 6 April 2023


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PricewaterhouseCoopers d.o.o.
Cesta v Kleče 15, SI-1000 Ljubljana, Slovenija
T: +386 (1)5836 000, F:+386 (1) 5836 099, www.pwc.com/si
Matriculation No.: 5717159, VAT No.: SI35498161
The company is registered by District court in Ljubljana under the number 12156800 as well in to the register of the Auditing companies by Agency for Public Oversight of Auditing
under the number RD-A-014/94. The amount of the registered share capital is EUR 34.802. The list of employed auditors is available at the registered office of the company.

Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an accurate
representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this
translation.
Independent Auditor’s Report

To the Shareholders of Petrol d.d., Ljubljana

Report on the audit of the consolidated and separate financial statements

Our opinion
In our opinion, the consolidated and separate financial statements present fairly, in all material respects,
the consolidated and separate financial position of Petrol d.d., Ljubljana (the “Company”) and its
subsidiaries (together - the “Group”) as at 31 December 2022, and the Group’s and the Company’s
consolidated and separate financial performance and consolidated and separate cash flows for the year
then ended in accordance with International Financial Reporting Standards as adopted by the European
Union.
Our opinion is consistent with our additional report to the Audit Committee dated 11 April 2023.
What we have audited
The Group’s and the Company’s consolidated and separate financial statements comprise:
the consolidated and separate statement of profit or loss for the year ended 31 December 2022;
the consolidated and separate statement of other comprehensive income for the year ended
31 December 2022;
the consolidated and separate statement of financial position as at 31 December 2022;
the consolidated and separate statement of changes in equity for the year then ended;
the consolidated and separate statement of cash flows for the year then ended; and
the notes to the consolidated and separate financial statements, which include significant accounting
policies and other explanatory information.


Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and Regulation (EU)
No. 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements
regarding statutory audit of public-interest entities (the “Regulation”). Our responsibilities under those
standards is further described in the Auditor’s responsibilities for the audit of the consolidated and separate
financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.


Graphics

Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
2
Independence
We are independent of the Group and the Company in accordance with International Code of Ethics for
Professional Accountants (including International Independence Standards) issued by the International
Ethics Standards Board for Accountants (IESBA Code) and with the ethical requirements that are relevant
to our audit of the consolidated and separate financial statements in Slovenia. We have fulfilled our other
ethical responsibilities in accordance with those requirements and with the IESBA Code.
To the best of our knowledge and belief, we declare that non-audit services that we have provided to the
Company and its subsidiaries are in accordance with the applicable law and regulations in Slovenia and
that we have not provided non-audit services that are prohibited under Article 5(1) of the Regulation.
The non-audit services that we have provided to the Company and its subsidiaries in the period from 1
January 2022 to 31 December 2022 are disclosed in the note 6.5 to the consolidated and separate financial
statements.


Our audit approach
Overview

Overall materiality for the consolidated financial statements of the
Group: EUR 7,420
thousand, which represents approximately 2%
of Gross profit (Sales revenue minus Cost of goods sold) of the
Group.
Overall materiality for the separate financial statements of the
Company: EUR 6,200
thousand, which represents approximately
2% of Gross profit (Sales revenue minus Cost of goods sold) of the
Company.

We conducted audit work at 9
companies/groups of related
companies in 4 countries.
Our audit scope addressed 81% of the Group’s absolute value of
underlying result.

Impairment of investments in subsidiaries in the separate financial
statements and impairment of goodwill in the consolidated financial
statements.
Measurement, derecognition, and recognition of liabilities due to the
company Gazprom Export LLC (hereinafter: Gazprom) in the
consolidated financial statements.
Final business combination purchase price allocation (PPA) in the
consolidated financial statements for 2022 arising from the
acquisition of a controlling interest in the company Crodux derivati
dva d.o.o. (hereafter: Crodux) in 2021.
Recognising income and loss from derivatives in the consolidated
and separate financial statements.


Materiality

Group
scoping

Key audit
matters

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Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
3
As part of designing our audit, we determined materiality and assessed the risks of material misstatement
in the consolidated and separate financial statements. In particular, we considered where Management
made subjective judgements; for example, in respect of significant accounting estimates that involved
making assumptions and considering future events that are inherently uncertain. As in all of our audits we
also addressed the risk of Management override of internal controls, including, among other matters,
consideration of whether there was evidence of bias that represented a risk of material misstatement due to
fraud.

Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the consolidated and separate financial statements are free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the consolidated and separate financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group and the Company materiality for the consolidated and separate financial
statements as a whole as set out in the table below. These, together with other qualitative considerations,
helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and
to evaluate the effect of misstatements, if any, both individually and in aggregate on the consolidated and
separate financial statements as a whole.

Overall Group and Company
materiality
The Group: EUR 7,420
thousand
The Company: EUR 6,200
thousand
How we determined it
The Group: approximately 2% of Gross profit (Sales revenue
minus Cost of goods sold) of the Group.
The Company: approximately 2% of Gross profit (Sales revenue
minus Cost of goods sold) of the Company.
Rationale for the materiality
benchmark applied
We chose Gross profit (Sales revenue minus Cost of goods sold) as the
benchmark because, in our view, it is the benchmark against which the
performance of the Group and Company is most commonly measured
by users and is a generally accepted benchmark. We chose the 2%
threshold, which is within the range of acceptable quantitative
materiality thresholds for this benchmark.

Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the consolidated and separate financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated and separate financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Graphics

Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
4
Key audit matter How our audit addressed the key audit matter
Impairment of investments in subsidiaries in
separate financial statements and impairment of
goodwill in consolidated financial statements

See Note 4.b Significant accounting policies of the
Company Investments in subsidiaries, Note 4.k2
Significant accounting policies of the Company
Impairment of assetsImpairment of investments
in subsidiaries and Note 3.e Significant accounting
policies of the Group Intangible assets
Goodwill.

The total value of investments in subsidiaries as at
31 December 2022 is disclosed in Note 6.19 in the
financial statements Investments in subsidiaries,
and amounts to EUR 554,032,932; the total value
of goodwill as at 31 December 2022 is disclosed in
Note 6.15 in the consolidated
financial statements
Intangible assets, and amounts to EUR
160,685,312.

Investments in subsidiaries and goodwill are
subject to significant audit risk due to:
the complexity of the assessments made
by the Management based on the
discounted future cash flows,
the importance of subjective judgements
and assessments used by the
Management, and
the impact of the ever-changing operations
in the industry in which the subsidiaries, for
which investments are shown or to which
goodwill relates, operate.
Group/Company applied value in use to determine
recoverable amount.







Our audit approach included significant audit
procedures, including:



Assessing whether the recoverable
amount calculated as Value in Use (ViU)
is appropriately determined in accordance
with requirements of IAS 36.

Assessing and testing key assumptions
used in the impairment tests, such as
growth rates and EBITDA margin, which
are used in cash flows, and assumptions
used to determine discount rates.
Assessing the methodologies used in
valuations. We assess that the Value in
Use (ViU) method used was consistent
with the requirements of applicable
IFRSs.
Testing the mathematical accuracy of the
valuation calculations.
Assessing the suitability of the
disclosures in consolidated and separate
financial statements in relation to the
performed impairment tests for
investments in subsidiaries and goodwill.
We also included an asset valuation expert in our
audit team who helped us assess the
methodology used and the use of discount rates.





Graphics

Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
5
Measurement, derecognition, and recognition of
liabilities due to Gazprom Export LLC (hereinafter:
Gazprom) in consolidated financial statements

See Note 3.c 6 Significant accounting policies of
the Group Financial liabilities and Note 3.c 7
Operating liabilities and Note 3.p Significant
accounting policies of the Group Determination of
fair value.

The total value of liabilities to Gazprom as at 31
December 2022 is disclosed in Note 6.39 in the
financial statements Current operating liabilities,
and amounts to EUR 3,550,000. The total impact
on profit or loss for 2022 from the derecognition
and recognition of liabilities is the income
recognition in the amount of EUR 88,592,000,
which is disclosed in Note 6.3 Revenue Other
revenue.
The measurement, derecognition and recognition of
liabilities to Gazprom are subject to significant audit
risk due to:
significant and uncertain business with
Gazprom due to the war in Ukraine and
associated international sanctions on
Russia,
the complicated application of International
Financial Reporting Standard 9 Financial
Instruments (hereinafter: IFRS 9),
the complexity of the estimation of the fair
value of liabilities, and
the importance of subjective judgements
and assessments used by the Management

in determining fair value.






Our audit approach included significant audit
procedures, including:

Checking the gas supply contract with
Gazprom and checking other
documentation related to the termination of
this contract in 2022.
Checking the invoices received from
Gazprom for the supplied gas quantities in
the amount of the reported liability before
the recognition of this liability in 2022.
Checking the accounting for the
derecognition of the liability to Gazprom for
the supplied gas, recognition of the new
liability, and measurement of this liability to
Gazprom in 2022 and as at 31 December
2022 in accordance with IFRS 9.
Assessing the relevance of the input data
used in the valuation report by our internal
valuation experts prepared by the Group
advisers.
Checking input data used in the calculation
of the claim for damages the Group has
towards Gazprom.
With support of our internal legal experts,
we assessed the reasonableness of the
scenarios used in the valuation report
prepared by the Group valuation advisers
in the context of their legal argument.
Assessing the suitability of the disclosures
in consolidated financial statements related
to the measurement, derecognition and
recognition of liabilities to Gazprom.

In our audit team, we also included those with
appropriate expertise in IFRS 9 who assisted in
assessing the appropriateness of the accounting
treatment of the derecognition and recognition of
liabilities, an asset valuation expert who assisted
in assessing the appropriateness of the
methodology used and the use of discount rates,
and a legal expert who was used primarily to
assess the appropriateness of the legal scenarios
applied in the valuation in the Gazprom case.

Graphics

Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
6
Key audit matter How our audit addressed the key audit matter
Final business combination PPA in consolidated
financial statements for 2022 arising from
acquisition of controlling interest in the company
Crodux derivati dva d.o.o. (hereafter: Crodux) in
2021


See Note 3.a
Significant accounting policies of
the Group Basis for consolidation Business
combinations

The purchase price allocation of the business
combination in 2022 arising from the acquisition of
a controlling interest in Crodux is disclosed in Note
6.1 in the financial statements Business
combinations. As disclosed in more detail in this
Note, in 2021 Petrol Group made a purchase price
allocation based on the provisional values of assets
and liabilities, and in 2022 it made a final allocation
based on the estimated fair value of the assets and
liabilities of Crodux.

The business combination purchase price
allocation in 2022 arising from the acquisition of a
controlling interest in Crodux is subject to
significant audit risk due to:
the significant impact on the consolidated
financial statements,
the complicated application of International
Financial Reporting Standard 3 Business
combinations (hereinafter: IFRS 3),
the complexity of the assessments made
by the Management based on the
discounted future cash flows,
the importance of subjective judgements
and assessments applied by the
Management, and
the impact of the ever-changing operations in the
industry in which Crodux operated.






Our audit approach included significant audit
procedures, including:
Understanding the transaction based on
discussions with the Management and the
predecessor auditor.
Checking the purchase price allocation to
individual categories in the business
combination of acquired assets and
liabilities in accordance with the final fair
value calculated by the Company.
Assessing and testing the assumptions
used in fair value determination; such as
growth rates and EBITDA margins on
which cash flows were based and
assessing appropriateness of applied
discount rates.
Assessing the appropriateness
of
disclosures in the consolidated financial
statements related to the final purchase
price allocation.

In our audit team, we also included an asset
valuation expert who assisted in assessing the
methodology used and the use of discount rates.


Graphics

Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
7
Key audit matter How our audit addressed the key audit matter
Recognising income and expenses from derivatives
in consolidated and separate financial statements

See Note 3.c2 Significant accounting policies of the
Group Financial assets at fair value through profit
or loss, and 4.d2 Significant accounting policies of
the Company Financial assets at fair value
through profit or loss

The total value of Gain from derivatives in 2022 is
disclosed in Note 6.9 Gain/(Loss) from derivates
and amounts to:
EUR 523,094,819 of Gain from derivatives for
the Group and
EUR 525,064,103 of Gain from derivatives for
the Company.
The total value of Loss from derivatives in 2022 is
disclosed in Note 6.9 Gain/(Loss) from derivatives
and amounts to:
EUR 558,699,150 of Loss from derivatives for
the Group and
EUR 551,271,270 of Loss from derivatives for
the Company.

Recognising gains and losses
from derivatives is
subject to significant audit risk due to:

the significant changes in prices of goods
and interest rate increases in 2022,
the complicated application of International
Financial Reporting Standard 9 Financial
Instruments (hereinafter: IFRS 9),
the specifics of the valuation of derivatives,
the importance of subjective judgements and
assessments of the Management in differentiating
between a contract based on the requirements of
IFRS 9, which is treated as a derivative at fair
value, and a contract for “own use” that is not
measured at fair value and the related subjective
judgement regarding the classification in the
financial statements and the related valuation of
open positions as at 31 December 2022.





Our audit approach included significant audit
procedures, including:
Assessing the environment of the IT
systems related to the recording of
derivatives transactions, as well as other
relevant systems that support the
accounting of related income and
expenses.
Assessing the design of the processes
established for the accounting of
derivatives transactions and testing their
operational effectiveness all the way to
the general ledger entry level.
On the sample basis we tested underlying
documentation (such as contracts and
settlement documents) supporting
derecognition of derivatives and
recognition of gain/loss in financial
statements.
On the sample basis we tested the
appropriateness of valuation of
derivatives and recognition of gain/loss in
financial statements.
Assessing the accuracy and
completeness of presentation and
disclosures in the consolidated and
separate financial statements.

In our audit team, we also included an expert for
IFRS 9 who assisted us with the accounting
treatment of derivatives and the related valuation
of open positions as at 31 December 2022.


Graphics

Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
8
How we tailored our Group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on
the consolidated financial statements as a whole, taking into account the structure of the Group, the
accounting processes and controls, and the industry in which the Group operates.
The Group engagement team carried out audit work on the Company’s separate financial statements. The
Group engagement team determined Group audit materiality and issued audit instructions to component
auditors and reviewed the work of component auditors.


Reporting on other information including the Business Report
The Management is responsible for the other information. The other information comprises “Introduction”,
“Business Report”, “Sustainable Development” and “Petrol Group” (jointly referred to as: “Business Report”)
(but does not include the consolidated and separate financial statements and our auditor’s report thereon).
Our opinion on the consolidated and separate financial statements does not cover the other information,
including the Business Report and, except to the extent otherwise explicitly stated in our report, we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to
read the other information identified above and, in doing so, consider whether the other information is
materially inconsistent with the consolidated and separate financial statements or our knowledge obtained
in the audit, or otherwise appears to be materially misstated.
With respect to the Business Report we also performed procedures required by the Slovenian Companies
Act. These procedures include assessing whether the Business Report is consistent with the consolidated
and separate financial statements and whether the Business Report was prepared in accordance with valid
legal requirements.
Based on the work undertaken in the course of our audit, in our opinion:
the information given in the Business Report for the financial year for which the consolidated and
separate financial statements are prepared is consistent, in all material respects, with the consolidated
and separate financial statements; and
the Business Report has been prepared, in all material respects, in accordance with the requirements
of the Slovenian Companies Act.
In addition, in the light of knowledge and understanding of the Group and the Company and their
environments obtained in the course of the audit, we are required to report if we have identified material
misstatements in other information obtained before the date of this auditor’s report. We have nothing to
report in this regard.


Responsibilities of Management and those charged with governance for the consolidated
and separate financial statements
The Management is responsible for the preparation and fair presentation of the consolidated and separate
financial statements in accordance with International Financial Reporting Standards as adopted by the
European Union and for such internal control as the Management determines is necessary to enable the
preparation of consolidated and separate financial statements that are free from material misstatement,
whether due to fraud or error.



Graphics

Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
9
In preparing the consolidated and separate financial statements, the Management is responsible for
assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless the Management
either intends to liquidate the Group or the Company or to cease operations, or has no realistic alternative
but to do so.
Those charged with governance are responsible for overseeing the Group’s and Company’s financial
reporting process.


Auditor’s responsibilities for the audit of the consolidated and separate financial
statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these consolidated and separate financial statements. As part of an audit in accordance with
ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We
also:
Identify and assess the risks of material misstatement of the consolidated and separate financial
statements, whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s and the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Management.
Conclude on the appropriateness of the Management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s or the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the consolidated and separate financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group or the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated and separate financial
statements, including the disclosures, and whether the consolidated and separate financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.



Graphics

Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
10
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements. We
are responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we comply with the relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated and separate financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.


Report on other legal and regulatory requirements
Appointment
We were first appointed as auditors of the Company at the shareholders meeting of the Company on 21
April 2022 for the financial year ended 31 December 2022. The president of the supervisory board signed
the audit contract on 1 August 2022. The contract was concluded for 3 years. Our uninterrupted period of
appointment is one year.

The key audit partners on the audit resulting in this independent auditor’s report are Primož Kovačič and
Dušan Hartman.

Reporting in accordance with Gas Supply Act (ZOP), Electricity Supply Act (ZOEE), and
Heat Supply from Distribution Systems Act (ZOTDS)
The Company Petrol d.d. disclosed financial statements by activities in Note 11 » Financial statements of
Petrol d.d. by activities according to Gas Supply Act (ZOP), Electricity Supply Act (ZOEE) and Heat Supply
from Distribution Systems Act (ZOTDS)«, which include Statement of financial position by activities as at 31
December 2022 and Statement of profit and loss by activities for the year then ended and the criteria for
allocation of assets, liabilities, revenues and expenses by activities (the “Criteria”).

Graphics

Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
11
The Management is responsible for establishing the Criteria which are contained in the internal act
“Pravilnik o računovodstvu” and comply with Gas Supply Act (ZOP), Electricity Supply Act (ZOEE) and
Heat Supply from Distribution Systems Act (ZOTDS). Management is also responsible for keeping of
separate accounting records and preparation of the financial statements by activities as at 31 December
2022 and for the year then ended.
Auditor’s responsibilities are examination of the adequacy and compliance with the requirements of ZOP,
ZOEE, ZOTDS of the Criteria, correctness of application of the Criteria and related disclosures by
activities as 31 December 2022 and for the year then ended.
Based on the procedures performed and evidence obtained during the audit of financial statements for the
year ended 31 December 2022, we report that, in all material respects, the Company disclosed financial
statements by activities, established the adequate Criteria and applied correctly these Criteria to prepare
financial statement by activities in compliance with the requirements of ZOP, ZOEE, ZOTDS.

Report on the compliance of the presentation of consolidated and separate financial
statements in with the requirements of the European single electronic reporting format
(ESEF)
We have been engaged based our agreement by the Management of the Parent Company Petrol d.d. to
conduct a reasonable assurance engagement for the verification of compliance with the applicable
requirements of the presentation of the consolidated and separate financial statements of Petrol d.d. for the
year ended 31 December 2022 (the “Presentation of the consolidated and separate financial statements”).

Description of the subject matter and applicable criteria
The Presentation of the consolidated and separate financial statements has been applied by the
Management of the Company to comply with the requirements of art. 3 and 4 of the Commission Delegated
Regulation (EU) 2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European
Parliament and of the Council with regard to regulatory technical standards on the specification of a single
electronic reporting format (the “ESEF Regulation”). The applicable requirements regarding the
Presentation of the consolidated and separate financial statements are contained in the ESEF Regulation.

The requirements described in the preceding sentence determine the basis for application of the
Presentation of the consolidated and separate financial statements and, in our view, constitute appropriate
criteria to form a reasonable assurance conclusion.


Responsibilities of management and those charged with governance
The Management of the Company is responsible for the Presentation of the consolidated and separate
financial statements that complies with the requirements of the ESEF Regulation.

This responsibility includes the selection and application of appropriate markups in iXBRL using ESEF
taxonomy and presenting, as well as designing, implementing and maintaining internal controls relevant for
the preparation of the Presentation of the consolidated and separate financial statements which is free from
material non-compliance with the requirements of the ESEF Regulation.

Those charged with governance are responsible for overseeing the financial reporting processes, which
should also be understood as the preparation of consolidated and separate financial statements in
accordance with the format resulting from the ESEF Regulation.



Graphics

Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
12
Our responsibility
Our responsibility was to express a reasonable assurance conclusion whether the Presentation of the
consolidated and separate financial statements complies, in all material respects, with the ESEF
Regulation.

We conducted our engagement in accordance with the International Standard on Assurance Engagements
3000 (R) - ‘Assurance Engagements other than Audits and Reviews of Historical Financial Information’
(ISAE 3000(R)). This standard requires that we comply with ethical requirements, plan and perform
procedures to obtain reasonable assurance whether the Presentation of the consolidated and separate
financial statements complies, in all material aspects, with the applicable requirements.

Reasonable assurance is a high level of assurance, but it does not guarantee that the service performed in
accordance with ISAE 3000 (R) will always detect the existing material misstatement (significant non-
compliance with the requirements).

Quality control requirements and professional ethics
We apply the provisions of the International Standard on Quality Control 1 and accordingly maintain a
comprehensive system of quality control, including documented policies and procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
We comply with the independence and other ethical requirements of the International Code of
Ethics for Professional Accountants (including International Independence Standards) issued by
the International Ethics Standards Board for Accountants (IESBA Code), which is founded on
fundamental principles of integrity, objectivity, professional competence and due care,
confidentiality and professional behaviour.

Summary of work performed
Our planned and performed procedures were aimed at obtaining reasonable assurance that the
Presentation of the consolidated and separate financial statements complies, in all material aspects, with
the applicable requirements and such compliance is free from material errors or omissions. Our procedures
included in particular:

obtaining an understanding of the internal control system and processes relevant to the application of
the Electronic Reporting Format of the consolidated and separate financial statements, including the
preparation of the XHTML format of the consolidated and separate financial statements and the use of
markup in consolidated and separate financial statements;
verification whether the XHTML format was applied properly in consolidated and separate financial
statements;
evaluating the completeness of marking up the consolidated and separate financial statements using
the iXBRL markup language according to the requirements of the implementation of electronic format
as described in the ESEF Regulation;
evaluating the appropriateness of the Group’s' use of XBRL markups selected from the ESEF
taxonomy and the creation of extension markups where no suitable element in the ESEF taxonomy has
been identified; and
evaluating the appropriateness of anchoring of the extension elements to the ESEF taxonomy.

Graphics

Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
13
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.

Conclusion
In our opinion, based on the procedures performed, the Presentation of the consolidated and separate
financial statements complies, in all material respects, with the ESEF Regulation.


For and on behalf of PricewaterhouseCoopers d.o.o.


Primož Kovačič Dušan Hartman
Director, Certified auditor Certified auditor


Ljubljana, Slovenia, 13 April 2023


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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 - Financial Report 199
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Public
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
The Petrol Group
Petrol d.d.
(in EUR)
Note
2022
2021
2022
2021
Sales revenue
6.3
9,456,733,497
4,960,125,965
7,325,325,520
3,562,467,539
Cost of goods sold
(9,063,284,948)
(4,416,701,515)
(6,986,267,630)
(3,201,977,488)
Costs of materials
6.4
(39,423,844)
(29,296,024)
(28,590,381)
(23,818,764)
Costs of services
6.5
(180,137,325)
(147,697,919)
(136,071,228)
(114,204,989)
Labour costs
6.6
(135,562,309)
(114,341,509)
(82,129,297)
(78,318,991)
Depreciation and amortisation
6.7
(96,300,070)
(79,091,758)
(46,517,125)
(46,696,671)
Other costs
6.8
(16,476,159)
(62,612,453)
(8,082,795)
(49,859,719)
- of which net allowance for trade
receivables
(7,930,749)
(7,914,095)
(2,990,233)
(3,003,074)
Gain from derivatives
6.9
523,094,819
269,931,980
525,064,103
269,846,734
Loss from derivatives
6.9
(558,699,150)
(235,728,482)
(551,271,270)
(236,333,237)
Other income
6.3
102,421,062
7,416,653
6,443,925
4,983,049
Other expenses
(278,445)
(876,145)
(30,455)
-
Operating profit or loss
(7,912,872)
151,128,793
17,873,367
86,087,463
Share of profit or loss of equity
accounted investees
6.10
3,328,395
2,583,771
-
-
Finance income from dividends paid by
subsidiaries, associates and jointly
controlled entities
6.10
-
-
1,652,814
3,287,054
Finance income
6.11
109,249,416
31,833,463
103,318,887
23,488,199
Finance expenses
6.11
(114,478,291)
(34,098,000)
(105,021,002)
(29,465,373)
Net finance expense
(5,228,875)
(2,264,537)
(1,702,115)
(5,977,174)
Profit/(loss) before tax
(9,813,352)
151,448,027
17,824,066
83,397,343
Current tax expense
6.12
(4,258,179)
(30,683,697)
(786,831)
(18,781,868)
Deferred tax
6.12
11,385,725
3,717,031
2,346,643
1,867,467
Income tax expense
7,127,546
(26,966,666)
1,559,812
(16,914,401)
Net profit for the year
(2,685,806)
124,481,361
19,383,878
66,482,942
Net profit for the year attributable to:
Owners of the controlling company
4,520,125
119,079,575
19,383,878
66,482,942
Non-controlling interest
(7,205,931)
5,401,786
-
-
Basic and diluted earnings per share
attributable to owners of the controlling
company
6.13
0.11
2.90
0.47
1.61
The Group/Company has changed the presentation of individual items in the statement of profit or loss in 2022.
The changes are explained in Point 2.f.
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction
with them.

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Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 - Financial Report 200
Javno
Public
Other comprehensive income of the Petrol Group and Petrol d.d., Ljubljana
The Petrol Group
Petrol d.d.
(in EUR)
Note
2022
2021
2022
2021
Net profit for the year
(2,685,806)
124,481,361
19,383,878
66,482,942
Effective portion of changes in the fair value of
cash flow variability hedging
6.14
17,755,033
4,109,730
34,292,222
3,283,988
Change in deferred taxes
(3,333,632)
(772,591)
(6,515,522)
(623,957)
Change in the fair value of financial assets
through other comprehensive income
-
(61,866)
-
-
Change in deferred taxes
-
11,756
-
-
Foreign exchange differences
(863,631)
496,086
-
-
Other comprehensive income to be
recognised in the statement of profit or loss in
the future
13,557,770
3,783,115
27,776,700
2,660,031
Total other comprehensive income to be
recognised in the statement of profit or loss in
the future
13,557,770
3,783,115
27,776,700
2,660,031
Unrealised actuarial gains and losses
2,405,390
(5,406)
2,583,114
12,995
Other comprehensive income not to be
recognised in the statement of profit or loss in
the future
2,405,390
(5,406)
2,583,114
12,995
Total other comprehensive income not to be
recognised in the statement of profit or loss in
the future
2,405,390
(5,406)
2,583,114
12,995
Total other comprehensive income after tax
15,963,160
3,777,709
30,359,814
2,673,026
Total comprehensive income for the year
13,277,354
128,259,070
49,743,692
69,155,968
Total comprehensive income attributable to:
Owners of the controlling company
24,749,798
122,872,937
49,743,692
69,155,968
Non-controlling interest
(11,472,444)
5,386,133
-
-
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction
with them.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 - Financial Report 201
Javno
Public
Statement of the financial position of the Petrol Group and Petrol d.d., Ljubljana
The Petrol Group
Petrol d.d.
(in EUR)
Note
31 December
2022
31 December
2021
Restated*
31 December
2022
31 December
2021
ASSETS
Non-current (long-term) assets
Intangible assets
6.15
245,289,473
254,911,455
151,972,471
155,524,818
Right-of-use assets
6.16
131,620,269
122,091,589
29,237,692
27,874,823
Property, plant and equipment
6.17
854,552,521
857,414,048
366,310,650
366,262,157
Investment property
6.18
14,777,108
16,139,743
11,490,836
12,335,994
Investments in subsidiaries
6.19
-
-
554,032,932
553,970,331
Investments in jointly controlled entities
6.20
1,277,748
704,501
233,000
210,000
Investments in associates
6.21
56,968,277
55,169,626
26,610,477
26,610,477
Financial assets at fair value through other
comprehensive income
6.22
4,112,346
4,133,044
2,117,914
2,117,914
Loans
6.23
949,277
991,831
59,134,780
83,299,185
Operating receivables
6.24
7,015,756
8,228,771
7,007,540
8,219,107
Deferred tax assets
6.12
18,190,424
11,379,674
3,987,393
8,155,514
1,334,753,199
1,331,164,282
1,212,135,685
1,244,580,320
Current assets
Inventories
6.25
264,849,265
180,009,192
151,178,363
96,573,239
Contract assets
6.28
13,319,362
3,338,893
11,722,300
7,604,649
Loans
6.26
1,679,138
16,168,692
41,343,762
16,181,049
Operating receivables
6.27
845,195,344
650,133,882
566,790,889
385,829,891
Corporate income tax assets
6.12
23,897,315
616,729
11,880,734
-
Financial assets at fair value through profit or loss
6.29
2,646,334
34,666,891
2,525,437
34,561,544
Financial assets at fair value through other
comprehensive income
6.22
38,034,066
1,776,801
33,376,691
1,100,446
Prepayments and other assets
6.30
115,267,863
85,718,759
51,468,197
50,728,784
Cash and cash equivalents
6.31
100,962,531
100,226,890
51,203,361
57,567,397
1,405,851,218
1,072,656,729
921,489,734
650,146,999
Total assets
2,740,604,417
2,403,821,011
2,133,625,419
1,894,727,319
EQUITY AND LIABILITIES
Equity attributable to owners of the controlling company
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 profit reserves
299,826,206
318,523,082
322,180,686
340,914,615
Fair value reserve
1,810,718
(789,611)
42,539,491
39,809,449
Hedging reserve
17,827,312
(858,584)
26,639,848
(1,136,850)
Foreign exchange differences
(9,496,033)
(8,634,420)
-
-
Retained earnings
323,576,627
362,184,854
9,545,011
33,241,471
828,765,147
865,645,638
597,990,971
609,914,620
Non-controlling interest
31,401,474
43,052,367
-
-
Total equity
6.32
860,166,621
908,698,005
597,990,971
609,914,620
Non-current liabilities
Provisions for employee post-employment and other long-
term benefits
6.33
7,836,685
9,516,091
5,898,618
7,969,809
Other provisions
6.34
18,210,763
34,323,479
13,381,922
17,606,490
Long-term deferred income
6.35
39,931,269
34,447,444
29,581,096
29,459,071
Financial liabilities
6.36
401,613,002
433,812,995
365,355,088
404,555,761
Lease liabilities
6.37
101,100,126
92,991,633
27,331,350
26,735,533
Operating liabilities
6.38
2,596,382
5,661,782
2,596,382
5,661,782
Deferred tax liabilities
6.12
20,682,541
21,953,238
-
-
591,970,768
632,706,662
444,144,456
491,988,446
Current liabilities
Financial liabilities
6.36
96,656,433
65,842,106
225,811,701
272,369,421
Lease liabilities
6.37
17,498,969
13,768,130
3,965,318
2,717,596
Operating liabilities
6.39
1,082,103,909
1,082,103,909
690,456,613
792,213,281
442,507,932
Commodity derivative instruments
6.40
29,872,456
116,341
16,007,602
116,341
Corporate income tax liabilities
6.12
1,062,768
18,786,511
-
16,353,199
Contract liabilities
6.41
23,153,575
14,828,344
18,367,017
7,905,838
Other liabilities
6.42
38,118,918
58,618,299
35,125,073
50,853,926
1,288,467,028
862,416,344
1,091,489,992
792,824,253
Total liabilities
1,880,437,796
1,495,123,006
1,535,634,448
1,284,812,699
Total equity and liabilities
2,740,604,417
2,403,821,011
2,133,625,419
1,894,727,319
*The Group/Company has changed the presentation of individual items of the financial position in 2022. The
changes are explained in Point 2.f. The accounting policies and notes are an integral part of these financial
statements and should be read in conjunction with them.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 - Financial Report 202
Javno
Public
Statement of changes in equity of the Petrol Group
(in EUR)
Called-up
capital
Capital
surplus
Profit reserves
Fair value
reserve
Hedging
reserve
Foreign
exchange
differences
Retained
earnings
Equity attributable to
owners of the controlling
company
Non-controlling
interest
Total
Legal
reserves
Reserves for
own shares
Own
shares
Other profit
reserves
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 comprehensive income
(36,164)
3,337,139
492,387
3,793,362
(15,653)
3,777,709
Total comprehensive 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
As at 1 January 2022
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
Dividend payments for 2021
(28,425,869)
(33,241,474)
(61,667,343)
(61,667,343)
Transfer of a portion of 2022 net profit
9,691,939
(9,691,939)
-
-
Increase/(decrease) in non-controlling interest
37,054
37,054
(178,449)
(141,395)
Transactions with owners
-
-
-
-
-
(18,696,876)
-
-
-
(42,933,413)
(61,630,289)
(178,449)
(61,808,738)
Net profit for the current year
4,520,125
4,520,125
(7,205,931)
(2,685,806)
Other comprehensive income
2,600,329
18,685,896
(861,613)
(194,939)
20,229,673
(4,266,513)
15,963,160
Total comprehensive income
-
-
-
-
-
-
2,600,329
18,685,896
(861,613)
4,325,186
24,749,798
(11,472,444)
13,277,354
As at 31 December 2022
52,240,977
80,991,385
61,987,955
4,708,359
(4,708,359)
299,826,206
1,810,718
17,827,312
(9,496,033)
323,576,627
828,765,147
31,401,474
860,166,621
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.
For more details, see Notes 6.19 and 6.32.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 - Financial Report 203
Javno
Public
Statement of changes in equity of Petrol d.d., Ljubljana
(in EUR)
Called-up
capital
Capital
surplus
Profit reserves
Fair value
reserve
Hedging
reserve
Retained
earnings
Total
Legal
reserves
Reserves for
own shares
Own shares
Other profit
reserves
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 comprehensive income
12,995
2,660,031
2,673,026
Total comprehensive 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
As at 1 January 2022
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
Dividend payments for 2021
(28,425,869)
(33,241,474)
(61,667,343)
Transfer of a portion of 2022 net profit
9,691,939
(9,691,939)
-
Transactions with owners
-
-
-
-
-
(18,733,930)
-
-
(42,933,413)
(61,667,343)
Net profit for the current year
19,383,878
19,383,878
Other comprehensive income
2,730,042
27,776,700
(146,928)
30,359,814
Total comprehensive income
-
-
-
-
-
-
2,730,042
27,776,700
19,236,950
49,743,692
As at 31 December 2022
52,240,977
80,991,385
61,749,884
4,708,359
(2,604,670)
322,180,686
42,539,491
26,639,848
9,545,011
597,990,971
Accumulated profit for 2022
52,156,001
9,691,939
61,847,940
Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 - Financial Report 204
Javno
Public
Statement of cash flows of the Petrol Group and Petrol d.d., Ljubljana
The Petrol Group
Petrol d.d.
(in EUR)
Note
2022
*2021 Restated
2022
2021
Cash flows from operating activities
Net profit
(2,685,806)
124,481,361
19,383,878
66,482,942
Adjustment for:
Corporate income tax
6.12
(7,127,546)
26,966,666
(1,559,812)
16,914,401
Depreciation of property, plant and equipment, investment
property and right-of-use assets
6.7
82,694,805
65,861,834
36,767,966
37,020,227
Amortisation of intangible assets
6.7
13,605,265
13,229,924
9,749,159
9,676,444
(Gain)/loss on disposal of property, plant and equipment
6.3, 6.8
(2,308,698)
627,202
(496,493)
653,815
Impairment, write-down/(reversed impairment) of assets
6.8
6,194,071
14,259,583
7,024
2,705,061
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
(176,863)
(306,149)
305,793
(310,918)
Net (decrease in)/creation of other provisions and long-term
deferred revenue
6.34, 6.35
(9,707,692)
3,356,189
(3,896,414)
3,881,951
Net goods surpluses
6.8
(4,964,865)
(2,696,235)
(3,343,967)
(1,476,726)
Net (decrease in)/creation of allowance for receivables
6.11
7,292,624
7,571,039
2,352,108
2,660,018
Net finance (income)/expense
6.11
8,160,628
(657,814)
4,789,290
7,431,554
Impairment of investments
6.11
-
873,366
-
11,193,296
Share of profit of jointly controlled entities
6.10
(665,483)
(300,040)
-
-
Share of profit of associates
6.10
(2,662,912)
(2,283,731)
-
-
Finance income from dividends received from subsidiaries
6.10
-
-
(723,160)
(1,823,324)
Finance income from dividends received from jointly controlled
entities
6.10
-
-
(115,217)
(135,495)
Finance income from dividends received from associates
6.10
-
-
(814,437)
(1,328,236)
Cash flow from operating activities before changes in
working capital
87,582,114
250,917,781
62,340,304
153,479,596
Net (decrease in)/creation of other liabilities
6.42
(20,483,464)
36,963,249
(15,728,852)
38,374,470
Net decrease in/(creation) of other assets
6.30
(4,126,645)
(18,616,569)
(1,568,792)
(13,287,076)
Change in inventories
6.25
(86,164,815)
(20,869,739)
(51,268,181)
(7,441,204)
Change in operating and other receivables and contract
assets
6.27, 6.28
(180,638,456)
(209,709,855)
(147,757,061)
(182,227,918)
Change in operating and other liabilities and contract liabilities
6.39, 6.41
406,890,937
138,301,308
374,077,361
80,276,004
Cash generated from operating activities
203,059,671
176,986,175
220,094,779
69,173,872
Interest paid
6.11
(14,411,347)
(9,750,418)
(9,669,252)
(7,157,264)
Taxes paid
6.12
(44,996,685)
(12,585,658)
(28,964,937)
3,921,348
Net cash from (used in) operating activities
143,651,639
154,650,099
181,460,590
65,937,956
Cash flows from investing activities
Payments for investments in subsidiaries, net of cash acquired
6.19
(3,720,482)
(185,966,729)
(3,720,482)
(204,150,000)
Receipts from investments in subsidiaries
6.19
3,244,000
-
3,244,000
-
Payments for investments in jointly controlled entities
6.20
(23,000)
-
(23,000)
-
Receipts from investments in associates
6.21
-
2,575,000
-
2,575,000
Receipts from sale of intangible assets
6.15
294,638
412,459
289,265
407,294
Payments for intangible assets
6.15
(8,710,587)
(7,276,610)
(6,298,800)
(4,074,759)
Receipts from sale of property, plant and equipment
6.17
4,025,620
5,385,276
1,278,388
687,619
Payments for property, plant and equipment
6.17
(74,289,070)
(57,030,318)
(38,631,661)
(28,496,285)
Receipts from sale of investment property
6.18
265,870
-
21,725
-
Payments for investment property
(124,378)
-
-
-
Receipts from loans granted
6.23, 6.26
16,086,323
91,219,887
251,765,872
159,534,710
Payments for loans granted
6.23, 6.26
(905,474)
(39,367)
(251,057,987)
(178,542,919)
Interest received
6.11
5,339,642
17,028,503
4,422,427
2,529,225
Dividends received from subsidiaries
6.10
-
-
723,160
1,823,324
Dividends received from jointly controlled entities
6.10
115,217
135,495
115,217
135,495
Dividends received from associates
6.10
864,261
1,403,355
814,437
1,328,236
Dividends received from others
6.10
258,925
177,148
148,925
67,148
Net cash from (used in) investing activities
(57,278,495)
(131,975,901)
(36,908,514)
(246,175,912)
Cash flows from financing activities
Payments for lease liabilities
6.37
(16,611,194)
(12,056,039)
(3,867,861)
(3,566,349)
Proceeds from borrowings
6.36
1,884,402,641
926,931,269
2,577,234,111
1,327,414,213
Repayment of borrowings
6.36
(1,891,704,933)
(880,837,557)
(2,662,608,090)
(1,085,490,135)
Dividends paid to shareholders
6.32
(61,674,272)
(45,222,901)
(61,674,272)
(45,222,901)
Net cash from (used in) financing activities
(85,587,758)
(11,185,228)
(150,916,112)
193,134,828
Increase/(decrease) in cash and cash equivalents
785,386
11,488,970
(6,364,036)
12,896,872
Changes in cash and cash equivalents
At the beginning of the year
100,226,890
88,674,952
57,567,397
44,670,525
Foreign exchange differences
(49,745)
62,968
-
-
Increase/(decrease)
785,386
11,488,970
(6,364,036)
12,896,872
At the end of the period
100,962,531
100,226,890
51,203,361
57,567,397
*The Group corrected an error from the previous year in 2022. The changes are explained in Point 2.g.
The accounting policies and notes are an integral part of these financial statements and should be read in
conjunction with them.

Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 Financial Report 205
Javno
Public
NOTES ON 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, 1000 Ljubljana. Below we present the consolidated
financial statements of the Group for the year ended 31 December 2022 and separate financial
statements of the company Petrol d.d., Ljubljana for the year ended 31 December 2022. 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 the chapter
Companies in the Petrol Group of the business report.



2. Basis of preparation
a. Statement of compliance
The Company’s Management Board approved the Company’s financial statements and the
Group’s consolidated financial statements on 6 April 2023.
The financial statements of Petrol d.d., Ljubljana and the 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.
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
in 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 the 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 are disclosed in the notes on 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 only affects that
period. If the change affects future periods, they are recognised in the period of the change
and in any future periods.




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Estimates and assumptions are mainly used in the following judgements:
Leases (Policy 3.h)
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 assessment is based on indicators that determine the nature of the duty
and the appropriateness of its presentation, such as: the assessment of the basis of
calculation, the point when the duty is payable, the possibility of varying the selling price
in the event of a change in the duty, and the risks associated with the value of the
inventory of goods. Taking into account all the above indicators and after reviewing the
presentation of comparable companies, the Group/Company concludes that it is
appropriate to present the revenue from the sale of goods and the cost of goods net of
excise duties. Among the above indicators, the most important indicator is the
possibility of price variation, where we note that due to the importance of the excise
duty in the final price, the variation of the excise duty has an impact on the final price,
which demonstrates that we are selling in the name and on behalf of third parties.
In 2022, the Group's excise duties amount to EUR 1,130,616,855 (2021: EUR
1,040,980,981).
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 with 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 only
purchases equipment upon the 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




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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.
Allocating assets or part of the assets to investment property
When the Group/Company uses property in part for the performance of its 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 control is gained over the acquired
assets/liabilities.
Since the completion of a transaction involving a business combination is subject to the
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 the 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. A description of the methods and assumptions is disclosed in
Note 6.1.
Estimating the useful lives of depreciable assets (Notes 6.15 and 6.16, 6.17 and 6.18,
Policies 3.e, 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 any 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 that 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),
financial assets at fair value through other comprehensive income (Note 6.22),
loans (Note 6.23),
financial assets and financial liabilities at fair value through profit or loss (Note 6.29).




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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 the 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 the 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.
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 current 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 the
unforeseeable future, which is beyond the control of Group companies. The management




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of a company regularly checks whether 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 the relevant circumstances regarding
conformity with the required standards and legal aspects, and represent the management’s
best estimate of how likely the outflow of economic benefits from the Group/Company is.
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 6.42)
Provisions for onerous contracts include:
Provisions for long-term transport and storage contracts. Provisions are carried as the
difference between the contractual and market value of the contract. They are
recognised on the basis of a calculation approved by the management and based on the
assumptions and estimates valid at the time of the calculation, which relate primarily to
the determination of the discount rate and
Provisions for the supply of electricity. They are recognised on the basis of the calculation
of the estimated economic benefits and costs of services from contracts for the supply
of electricity. The projected market prices of electricity for the following year are used in
the calculation.
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.




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e. Changes in accounting policies
The Group/Company did not change its accounting policies in 2022.

f. Change of financial statement presentation
In 2022, the Group changed the individual item presentation in the Statement of Financial
Position and Statement of Profit or Loss in order to ensure a more relevant presentation. The
change also includes a comprehensive adjustment of the items for the 2021 comparative
period on an equal basis.
Commodity derivatives and commodity forward contracts
The Group/Company utilises commodity derivatives and commodity forward contracts for the
purchase of petroleum products, natural gas and for electricity trading. The Group/Company
recognises the effects of these derivatives in other income/expenses in profit or loss. Until
2022, the Group/Company reported the liabilities of commodity derivatives and commodity
forward contracts as financial liabilities. In 2022, they were reclassified as a new line item
commodity derivatives. The reason for the change in recognition is that those derivatives are
an integral part of the operations and should be considered together with the effects of
commodity derivatives and commodity forward contracts, as they are one of the
Group’s/Company’s activities.
The Group/Company believes that the change in presentation will improve the presentability
of the information and the comparability of the Group/Company’s financial statements with
other companies in the market.
Definitive allocation of the purchase price of Crodux derivati dva d.o.o.
Because the business combination of the company took place at the end of 2021 and the fair
value of the assets as at 31 December 2021 could not be determined with certainty, the
acquired assets as at 31 December 2021 were recognised at provisional values. In 2022, 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 the purchase price and reflecting it in the 2021 financial statements.
The effect on the statement of the financial position of the Petrol Group and Petrol, d.d.
following a change in the presentation of commodity derivative instruments and
definitive allocation of the purchase price
The Petrol Group
Petrol d.d.
31 December
2021
Published
Change of presentation
31 December
2021
Restated
Change of
presentation
31 December
2021
Adjusted
(in EUR)
Definitive
allocation of
goodwill
Commodity
derivative
instruments
31 December
2021
Published
Commodity
derivative
instruments
ASSETS
Non-current (long-term) assets
1,312,403,308
18,760,974
-
1,331,164,282
1,244,580,320
-
1,244,580,320
Intangible assets
345,329,895
(90,418,440)
-
254,911,455
155,524,818
-
155,524,818
Right-of-use assets
102,621,512
19,470,077
-
122,091,589
27,874,823
-
27,874,823
Property, plant and equipment
767,704,711
89,709,337
-
857,414,048
366,262,157
-
366,262,157
Current assets
1,071,048,123
1,608,606
-
1,072,656,729
650,146,999
-
650,146,999
Inventories
178,191,288
1,817,904
-
180,009,192
96,573,239
-
96,573,239
Operating receivables
650,343,180
(209,298)
-
650,133,882
385,829,891
-
385,829,891
Total assets
2,383,451,431
20,369,580
-
2,403,821,011
1,894,727,319
-
1,894,727,319
-
-
EQUITY AND LIABILITIES
Total equity
908,698,005
-
-
908,698,005
609,914,620
-
609,914,620
Non-current liabilities
612,337,082
20,369,580
-
632,706,662
491,988,446
-
491,988,446
Deferred tax liabilities
1,583,658
20,369,580
-
21,953,238
-
-
-
Current liabilities
862,416,344
-
-
862,416,344
792,824,253
-
792,824,253
Financial liabilities
65,958,447
-
(116,341)
65,842,106
272,485,762
(116,341)
272,369,421
Commodity derivative instruments
-
-
116,341
116,341
-
116,341
116,341
Total liabilities
1,474,753,426
20,369,580
-
1,495,123,006
1,284,812,699
-
1,284,812,699
Total equity and liabilities
2,383,451,431
20,369,580
-
2,403,821,011
1,894,727,319
-
1,894,727,319




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Net allowances for operating receivables
The Group/Company used to carry the reversed and recovered allowances for operating
receivables as part of other financial income and the allowance for operating receivables as
part of other financial expenses until 2022. On reconsideration of this presentation, the
Group/Company considered that it was more appropriate to present net allowances for
operating receivables as an operating expense.
Impairment of investments in subsidiaries
Until 2022, the Company carried the impairment of investments in subsidiaries as part of other
financial expenses. On reconsideration of this presentation, the Company considered it more
appropriate to present the impairment of investments as an operating expense.
Sale in the name and on behalf of third parties
In previous periods, the revenues from the sale of goods and their cost in electricity trading in
a subsidiary were carried as part of the subsidiary's financial statements. On reconsideration
of such presentation, the Company considered it more appropriate to present the revenue from
the sale of goods and the cost of goods sold in the parent company because the subsidiary
makes the sales in the name of and on behalf of the parent company. The change in
presentation in the financial statements had no impact on the Group's financial statements.
Impact on the statement of profit or loss of the Petrol Group and Petrol d.d
The Petrol Group
Petrol d.d.
(in EUR)
2021
Published
Change of
presentation
2021 Adjusted
2021 Published
Change of
presentation
2021 Adjusted
Sales revenue
4,960,125,965
-
4,960,125,965
3,557,019,790
5,447,749
3,562,467,539
Cost of goods sold
(4,416,701,515)
-
(4,416,701,515)
(3,196,529,739)
(5,447,749)
(3,201,977,488)
Costs of materials
(29,296,024)
-
(29,296,024)
(23,818,764)
-
(23,818,764)
Costs of services
(147,697,919)
-
(147,697,919)
(114,204,989)
-
(114,204,989)
Labour costs
(114,341,509)
-
(114,341,509)
(78,318,991)
-
(78,318,991)
Depreciation and amortisation
(79,091,758)
-
(79,091,758)
(46,696,671)
-
(46,696,671)
Other costs
(54,698,358)
(7,914,095)
(62,612,453)
(35,663,349)
(14,196,370)
(49,859,719)
- of which net allowance for operating receivables
-
(7,914,095)
(7,914,095)
-
(3,003,074)
(3,003,074)
Gain from derivatives
-
269,931,980
269,931,980
-
269,846,734
269,846,734
Loss from derivatives
-
(235,728,482)
(235,728,482)
-
(236,333,237)
(236,333,237)
Other income
277,348,633
(269,931,980)
7,416,653
274,789,421
(269,806,372)
4,983,049
Other expenses
(236,604,627)
235,728,482
(876,145)
(236,292,875)
236,292,875
-
Operating profit or loss
159,042,888
(7,914,095)
151,128,793
100,283,833
(14,196,370)
86,087,463
Share of profit or loss of equity accounted
investees
2,583,771
-
2,583,771
-
-
-
Finance income from dividends paid by
subsidiaries, associates and jointly controlled
entities
-
-
-
3,287,054
-
3,287,054
Finance income
32,172,838
(339,375)
31,833,463
23,508,629
(20,430)
23,488,199
Finance expenses
(42,351,470)
8,253,470
(34,098,000)
(43,682,173)
14,216,800
(29,465,373)
Net finance expense
(10,178,632)
7,914,095
(2,264,537)
(20,173,544)
14,196,370
(5,977,174)
Profit before tax
151,448,027
-
151,448,027
83,397,343
-
83,397,343

g. Change of financial statement presentation due to correction of a prior year
error in the Statement of Cash Flows
Cash acquired through the acquisition of a company
The Group presented cash acquired from the acquisition of companies separately from cash
flows from investing activities and therefore made an adjustment to the Statement of Cash
Flows at 31 December 2021 to present cash acquired from the acquisition of a company as
part of cash flows from investing activities in the line item Expenditure on investments in
subsidiaries.



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Effect on the Statement of Cash Flows of the Petrol Group
The Petrol Group
(in EUR)
2021
Published
Change of
presentation
2021
Adjusted
Payments for investments in subsidiaries
(196,650,000)
10,683,271
(185,966,729)
Net cash from (used in) investing activities
(142,659,172)
10,683,271
(131,975,901)
Increase/(decrease) in cash and cash equivalents
805,699
10,683,271
11,488,970
Cash acquired through acquisition of companies
10,683,271
(10,683,271)
-


3. Significant accounting policies of the Group
The Group and Group companies applied the accounting policies set out below consistently to
all the 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.
Newly adopted standards and interpretation, for the Group and the Company, effective
as of 1 January 2022
Proceeds before intended use, Onerous contracts cost of fulfilling a contract,
Reference to the Conceptual Framework narrow scope amendments to the IAS 16, IAS
37 and IFRS 3, and Annual Improvements to the IFRSs 2018-2020 amendments to the
IFRS 1, IFRS 9, IFRS 16 and IAS 41 (issued on 14 May 2020 and effective for annual
periods beginning on or after 1 January 2022).
The amendment to the IAS 16 prohibits an entity from deducting from the cost of an item of
property, plant and equipment any proceeds received from selling items produced while the
entity is preparing the asset for its intended use. The proceeds from selling such items,
together with the costs of producing them, are now recognised in profit or loss. An entity has
to use the IAS 2 to measure the cost of those items. The cost does not include the depreciation
of the asset being tested because it is not yet ready for its intended use. The amendment to
the IAS 16 also clarifies that an entity is ‘testing whether the asset is functioning properly’ when
it assesses the technical and physical performance of the asset. The financial performance of
the asset is not relevant to this assessment. An asset might therefore be capable of operating
as intended by management and subject to depreciation before it has achieved the level of
operating performance expected by management.
The amendment to the IAS 37 clarifies the meaning of ‘costs to fulfil a contract’. The
amendment explains that the direct cost of fulfilling a contract comprises the incremental costs
of fulfilling that contract; and an allocation of other costs that relate directly to fulfilment. The
amendment also clarifies that, before a separate provision for an onerous contract is
established, an entity recognises any impairment loss that has occurred on assets used in
fulfilling the contract, rather than on assets dedicated to that contract.
The IFRS 3 was amended to refer to the 2018 Conceptual Framework for Financial Reporting,
in order to determine what constitutes an asset or a liability in a business combination Prior to
the amendment, the IFRS 3 referred to the 2001 Conceptual Framework for Financial
Reporting. In addition, a new exception in the IFRS 3 was added for liabilities and contingent
liabilities. The exception specifies that, for some types of liabilities and contingent liabilities, an
entity applying the IFRS 3 should instead refer to the IAS 37 or IFRIC 21, rather than the 2018
Conceptual Framework. Without this new exception, an entity would have recognised some
liabilities in a business combination that it would not recognise under the IAS 37. Therefore,




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immediately after the acquisition, the entity would have had to derecognise such liabilities and
recognise a gain that did not depict an economic gain. It was also clarified that the acquirer
should not recognise contingent assets, as defined in the IAS 37, at the acquisition date.
The amendment to the IFRS 9 addresses which fees should be included in the 10% test for
derecognition of financial liabilities. Costs or fees could be paid to either third parties or the
lender. Under the amendment, the costs or fees paid to third parties will not be included in the
10% test.
Illustrative Example 13 that accompanies the IFRS 16 was amended to remove the illustration
of payments from the lessor relating to leasehold improvements. The reason for the
amendment is to remove any potential confusion about the treatment of lease incentives.
IFRS 1 allows an exemption if a subsidiary adopts the IFRS at a later date than its parent. The
subsidiary can measure its assets and liabilities at the carrying amounts that would be included
in its parent’s consolidated financial statements, based on the parent’s date of transition to the
IFRS, if no adjustments were made for consolidation procedures and for the effects of the
business combination in which the parent acquired the subsidiary. The IFRS 1 was amended
to allow entities that have taken this IFRS 1 exemption to also measure cumulative translation
differences using the amounts reported by the parent, based on the parent’s date of transition
to the IFRS. The amendment to the IFRS 1 extends the above exemption to cover cumulative
translation differences, in order to reduce costs for first-time adopters. This amendment will
also apply to associates and joint ventures that have taken the same IFRS 1 exemption.
The requirement for entities to exclude cash flows for taxation when measuring fair value under
the IAS 41 was removed. This amendment is intended to align with the requirement in the
standard to discount cash flows on a post-tax basis.
The amendments did not have a material impact on the financial statements of the
Group/Company.
Covid-19-Related Rent Concessions Amendments to the IFRS 16 (issued on 31 March
2021 and effective for annual periods beginning on or after 1 April 2021).
In May 2020 an amendment to the IFRS 16 was issued that provided an optional practical
expedient for lessees from assessing whether a rent concession related to COVID-19,
resulting in a reduction in lease payments due on or before 30 June 2021, was a lease
modification. An amendment issued on 31 March 2021 extended the date of the practical
expedient from 30 June 2021 to 30 June 2022.
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 the 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.





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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 a bargain purchase.
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 by the Group. A contingent liability that
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.

Accounting for the acquisitions of non-controlling interests
The Group accounts for acquisitions of non-controlling interests that do not involve a 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 profit reserves.
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




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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.

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 using 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 as 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 as profit or loss.

c. Financial assets
The Group’s financial assets include cash and cash equivalents, receivables and loans, and
investments.




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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.
Upon initial recognition, the Group’s financial instruments are classified into one of 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 the transaction price determined
according to the provisions of the IFRS 15 less expected credit losses in accordance with the
provisions of the IFRS 9. 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 that 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.




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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.
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 the
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 the 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 that 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 irrevocably classify its non-listed equity investments under this category.
c5. Financial assets at the 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 and receivables. 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 the amortised cost are recognised initially at fair value plus any
directly attributable transaction costs. Subsequent to initial recognition, they are measured at
the 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 the 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




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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
depreciation 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,
cancelled or expired.
c7. Operating liabilities
Trade liabilities and other operating liabilities are stated at fair value upon initial recognition and
at amortised cost after initial recognition.


c8. 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
the changes in the fair value of the derivative is recognised in the 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 by the Group.
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.
When a forward financial instrument 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 the
comprehensive income. The ineffective portion of the gain or loss on the instrument is
recognised in profit or loss as a finance income or expense.





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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 by
the Group. 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 a gain or loss on the
derivative financial instruments.
When a commodity derivative financial instrument 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
the comprehensive income. The ineffective portion of the gain or loss on the instrument is
recognised in profit or loss as a gain or loss on the derivative financial instruments.
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 by the Group. 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
another finance income or expense.
Commodity forward contracts
Under the IFRS 9, commodity forward contracts the purpose of which is not the 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 the IFRS 9.
Forward purchase and sale transactions concluded to ensure the physical settlement of goods
are treated outside the scope of the IFRS 9 when the contract comprising those transactions
is treated as being part of the ordinary course of business to ensure the physical delivery of
goods, provided that the following conditions are met:
the 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 optional.
As commodity forward contracts in electricity trading 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 a gain or loss on the derivative financial instruments. However,
forward contracts for the supply of electricity meet the above conditions and are therefore
treated outside the provisions of the IFRS 9.





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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 the 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.
In accordance with the Companies Act, legal reserves may be used in excess to increase share
capital from the assets of the company and to cover net and carried-forward losses, provided
that profit reserves are not used at the same time to pay out profits to shareholders.
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 the 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 capital surplus net of transaction
costs and related tax effects.

Other profit reserves
At the time of preparing the annual report, the Group may form other profit reserves up to 50%
of the net profit or loss for the year. Other profit reserves may be used for any purpose in
accordance with the Act, the Articles of Association, the operating policy and the resolutions
of the General Meeting.
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.
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.
Upon initial recognition, the Group performs an annual review of the appropriateness of
goodwill. 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 the current profit or loss.




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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 the usage of the concession infrastructure. An
intangible non-current asset received as a 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 depreciation and any accumulated impairment losses. The duration of the right
is linked to the duration of the concession agreement.
District heating
At the end of 2022, 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 are proprietary and
three are market distribution systems.
Distribution of natural gas
At the end of December 2022, the Petrol Group operated 31 natural gas supply concessions in
Slovenia, and in Serbia we supply natural gas to the municipalities of Bačka Topola and Pećinci,
as well as three municipalities in Belgrade. Since the end of 2018, the Petrol Group has also
been present on the Croatian market, where Zagorski metalac d.o.o. distributes natural gas in
certain municipalities in the areas of Zagorje-Krapinje and Zagreb County.
Wastewater treatment
In 2022 the Petrol Group operated four concessions for the public utility service of municipal
wastewater treatment.
For more details, see Business report 14. Operations by product groups.
Development of software solutions
The 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
depreciation 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 the 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 mostly comprise
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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Amortisation
Amortisation is calculated on a straight-line basis, taking into account the useful life of
intangible fixed assets. Depreciation begins when the asset is available for use.
Amortisation rates for the current and comparative years are as follows:
(in %)
2022
2021
Right to use concession infrastructure
2.00-20.00
2.00-20.00
Material and other rights
3.33-33.33
3.33-33.33
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 with 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.
Depreciation rates for the current and comparative periods are as follows:
(in %)
2022
2021
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
Machinery:
Pumping equipment at service stations
5.00-25.00
5.00-25.00
Freight cars, rail tankers
25.00
25.00
Equipment:
Mechanical and electronic equipment for maintenance of other
equipment
10.00-25.00
10.00-25.00
Gas station equipment
3.33-20.00
3.33-20.00
Motor vehicles
10.00-25.00
10.00-25.00
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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The 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.
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. Environmental fixed assets are part of buildings and equipment.

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 plant, property and equipment. The impairment of assets
is detailed in Point j2.
The Group considers as investment property all properties held by the Group that are 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 the 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 a
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 the 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 whose lease term expires earlier than 12 months from initial use and leases
of low-value assets. Low-value leases are leases of assets with an individual value of less than




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EUR 4,300 (the value of the new asset being leased is taken into account). With regard to
leases of low-value assets 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:
(in %)
2022
2021
Lands
3.33-20.00
3.33-20.00
Buildings
5.00-20.00
5.00-20.00
Equipment:
Equipment
10.00-100.00
10.00-100.00
Motor vehicles
16.67-33.33
16.67-33.33

If the 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 that is reasonably certain to be exercised by the Group and the 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 the 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 the lease liabilities
is increased to reflect the accretion of interest and reduced by the lease payments made. In
addition, the carrying amount of the 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 expenses are charged to finance expenses for the
period.




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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 asset 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 expenses on a straight-line basis over the lease term.

i. Inventories
Inventories of merchandise and materials are measured at the lower of the cost and net
realisable values.
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.
The 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 weighted average price method for fuel stocks is used for the use of stocks in the cost of
goods sold and the FIFO method for merchandise stocks.


j. Impairment
j1. Financial assets
In accordance with the IFRS 9, the Group uses the expected loss model based on which the
Group not only recognises 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 has 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 impairments. If it is assessed that
the carrying amount of receivables exceeds their fair value, i.e. the collectable 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 a case, the impairment





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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, and the expected credit
loss is also reduced by expected offsets of trade receivables against trade payables.
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, the timing of recoveries and the amount of loss incurred, adjusted for the
management board’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.
The Group recognises the creation, reversal of allowances and recoveries of written-off
receivables as net allowances for operating receivables within operating expenses.
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
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
On each reporting date, the Group reviews the carrying amounts of significant non-financial
assets to determine whether there is any indication of impairment. If any such indication exists,
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”).





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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 defined that it 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 the interdependence of individual points of sale, the Group determined that
identifying the point-of-sale network in an individual country as a level at which to check for
signs of impairment was the most appropriate approach. In case of indicators of impairment on
the network, impairment is done on the level of individual point of sale.
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 after the deduction of depreciation write-off
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.
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.




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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 the 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 the 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 the 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 Group for
long-term contracts for the leasing of transmission and storage capacities cover the entire
contract period.

l. Long-term deferred income
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 income over the periods in which the costs that they are intended to compensate are
incurred. The income, 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.




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Long-term deferred income
Long-term deferred income comprises deferred income 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 income is restated under other income in proportion to
the depreciation of environmental fixed assets. The portion of the deferred income attributable
to the period under 12 months is moved to the current deferred income.
m. Revenue from contracts with customers
Revenue from contracts with customers is recognised once the control of goods or services is
transferred to a customer in 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.
Fuels and petroleum products segment revenue includes sales of petroleum products, sales
of LPG and other alternative energy (compressed natural gas), the transport, storage and
handling of fuels, payment card revenues, and sales of biomass, tyres and tubes, and batteries.
Merchandise and services segment revenue includes the sale of foodstuffs, haberdashery,
tobacco products, lotteries, coupons and cards, coffee on the go, Fresh products, car
cosmetics and spare parts, as well as car wash services, sales promotion services and other
services.
Energy and solutions segment revenue includes the sale and trading of electricity and
natural gas, the sale of energy solutions (energy and environmental management systems for
buildings, water systems, efficient lighting systems, district energy, water treatment, industrial
solutions), the sale of heating systems, natural gas distribution systems, mobility and energy
product production.
Other segment revenue includes mining services, maintenance services, rent from holiday
accommodation.
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,
where there is an actual physical delivery of electricity.
Transportation is not recognised in the revenue from the sale of goods as it is charged
separately and recognised in the revenue from services.




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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 the 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 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 separately recognises revenue from the sale of goods and
finance income deferred over the entire contract term. The finance income to total purchase
price ratio is assessed based on discounted future cash flows flowing to the Group based on
the sale. The Group mainly sells solar power plants on an instalment basis.
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, segment merchandise and services.
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 the payment of the consideration is due). See the
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
received prepayments, 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




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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.

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, 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 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 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 Group determines the fair
value of assets 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




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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 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 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.
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 assets. See Note 7.7.

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 on 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 on 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.

r. Earnings per share
The Group 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 the owners of the




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controlling company 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 the
owners of the controlling company 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 Board (Chief Operating Decision Maker) 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:
- fuels and petroleum products,
- merchandise and services,
- energy and solutions,
- other.

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 2021 and 31 December 2022 and data derived from the statement of profit or
loss for the period January to December 2022. The default interest paid and received in
connection with operating receivables and Interest on loans are allocated to cash flows from
operating activities. The dividends paid are allocated to cash flows from financing activities,
while dividends received are allocated to cash flows from investment 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 converted to the functional currency using the exchange
rate on 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 using
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.




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b. Investments in subsidiaries
Subsidiaries are entities controlled by the Company. 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.
In the Company’s financial statements, investments in subsidiaries are accounted for at cost
less impairment. The Company only recognises income from an investment to the extent that
it originates from a distribution of accumulated profits of the investee arising after the date of
acquisition. If a Group controlled company is merged, the difference between the investments
and the net value of acquired assets is recognised in other profit reserves, taking into account
goodwill, if any.
The impairment of assets is detailed in Point k2.

c. Investments in associates and jointly controlled entities
The Company measures investments in associates and jointly controlled entities at cost less
impairment.

d. Financial assets
The Company’s financial assets include cash and cash equivalents, receivables and loans,
and investments.
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
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 of 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 the IFRS 15 less expected credit losses in
accordance with the provisions of the IFRS 9. 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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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 that 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 the
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 financial assets that meet the definition of equity under the 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 that 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 irrevocably classify its non-listed equity investments under this
category.




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d5. Financial assets at the 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 and receivables. 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 the amortised cost are recognised initially at fair value plus any
directly attributable transaction costs. Subsequent to initial recognition, they are measured at
the 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 the 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 depreciation 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,
cancelled or expire.
d7. Operating liabilities
Trade liabilities and other operating liabilities are stated at fair value upon initial recognition and
at amortised cost after initial recognition.
d8. 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
the 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




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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 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 by the Company.
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 financial income or expenses.
When a forward financial instrument 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 the
comprehensive income. The ineffective portion of the gain or loss on the instrument is
recognised in profit or loss as a finance income or expense.
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 a gain or loss on the derivative
financial instruments.
When a commodity derivative financial instrument 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
the comprehensive income. The ineffective portion of the gain or loss on the instrument is
recognised in profit or loss as a gain or loss on the derivative financial instruments.
Interest rate swaps and collars
Interest rates on loans received are exposed to a risk of interest rate fluctuations that 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 another finance income or expense.
Commodity forward contracts
Under the IFRS 9, commodity forward contracts the purpose of which is not the 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 the IFRS 9.




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Forward purchase and sale transactions concluded to ensure the physical settlement of goods
are treated outside the scope of the IFRS 9 when the contract comprising those transactions
is treated as being part of the ordinary course of business to ensure the physical delivery of
goods, provided that the following conditions are met:
the 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 optional.
As commodity forward contracts in electricity trade 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. 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 a gain/loss from derivatives. However, forward contracts for
the supply of electricity meet the above conditions and are therefore treated outside the
provisions of the IFRS 9.

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 the 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.
In accordance with the Companies Act, legal reserves may be used in excess to increase share
capital from the assets of the company and to cover net and carried-forward losses, provided
that profit reserves are not used at the same time to pay out profits to shareholders.
Reserves for own shares
If the Company acquires an ownership interest, the amount paid, including transaction costs
less tax, is deducted from the 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 capital surplus net of transaction costs and related tax effects.
Other profit reserves
At the time of preparing the annual report, the Company may form other profit reserves up to
50% of the net profit or loss for the year. Other profit reserves may be used for any purpose in
accordance with the Act, the Articles of Association, the operating policy and the resolutions
of the General Meeting.
Fair value reserve
The fair value reserve comprises the effect of the upstream merger 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.



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f. Intangible assets
Goodwill
Goodwill arises on the upstream merger of a subsidiary. An upstream merger of a subsidiary
to the controlling company is accounted for at the carrying amount from highest level of
consolidation, in the case of any goodwill arising from a business combination, goodwill is
recognised at the Group’s cost. Any difference between the net assets of the merged company
plus goodwill and the investment in the merged company is recognised in other profit reserves.
After the initial recognition, the Company performs a goodwill adequacy check once a year. 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 the 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
intangible non-current asset received as a 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 depreciation and any accumulated impairment losses. The duration of the right
is linked to the duration of the concession agreement.
For more details, see Business report 14. Operations by product groups.
Development of software solutions
The 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 the 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
depreciation 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 the distribution of
natural gas, which are described below, intangible fixed assets mostly comprise 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. Depreciation begins when the asset is available for use.




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The amortisation rates based on the estimated useful lives for the current and comparative
years are as follows:
(in %)
2022
2021
Right to use concession infrastructure
2.00-20.00
2.00-20.00
Material and other rights
3.33-33.33
3.33-33.33
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
acquisition of the assets. Parts of an item of property, plant and equipment with 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:
(in %)
2022
2021
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
Machinery:
Pumping equipment at service stations
5.00-25.00
5.00-25.00
Freight cars, rail tankers
25.00
25.00
Equipment:
Mechanical and electronic equipment for maintenance of other
equipment
10.00-25.00
10.00-25.00
Gas station equipment
3.33-20.00
3.33-20.00
Motor vehicles
10.00-25.00
10.00-25.00
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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The 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.
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. Environmental fixed assets are part of buildings and equipment.

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
impairment losses. Investment property is measured using the cost model. The depreciation
method and rates are the same as for plant, property and equipment. 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 Company’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 it exceeds 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 the 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 a 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 the 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 whose lease term expires earlier than 12 months from initial use 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 the lease




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relates. Low-value leases are leases of assets with an individual value of less than EUR 4,300
(the value of the new asset being leased is taken into account).
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 %)
2022
2021
Lands
3.33-20.00
3.33-20.00
Buildings
5.00-20.00
5.00-20.00
Equipment:
Equipment
10.00-100.00
10.00-100.00
Motor vehicles
16.67-33.33
16.67-33.33
If the 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
Company’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 Company
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 the lease liabilities
is increased to reflect the accretion of interest and reduced by the lease payments made. In
addition, the carrying amount of the 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 expenses are charged to finance expenses for the
period.




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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 expenses on a straight-line basis over the lease term.

j. Inventories
Inventories of merchandise and materials are measured at the lower of the cost and net
realisable values.
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.
The 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 weighted average price method for fuel stocks is used for the use of stocks in the cost of
goods sold and the FIFO method for merchandise stocks.

k. Impairment
k1. Financial assets
In accordance with the IFRS 9, the Company use 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 impairments. If it is assessed that
the carrying amount of receivables exceeds their fair value, i.e. the collectable 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.




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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 a 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 and the expected credit
loss is also reduced by expected offsets of trade receivables against trade payables.
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, the timing of recoveries and the amount of loss incurred, adjusted for the
management board’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 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.
The Company recognises the creation, reversal of allowances and recoveries of written-off
receivables as net allowances for operating receivables within operating expenses.
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
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.
k2. Non-financial assets
On each reporting date, the Company reviews the carrying amounts of significant non-financial
assets to determine whether there is any indication of impairment. If any such indication exists,
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-




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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 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 after the
deduction of depreciation write-off if no impairment loss had been recognised in previous
years.
In the case of points of sale, the Company defined that it 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 the interdependence of individual points of sale, the Company
determined that identifying the point-of-sale network as a level at which to check for signs of
impairment was the most appropriate approach. In case of indicators of impairment on the
network, impairment is done on the level of individual point of sale.
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 the most recent available financial results, the management’s
expectations for the future and market assumptions.

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 the 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. Post-
employment benefits on retirement and jubilee benefits are charged against the provisions
created.




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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 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 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 the 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 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
the 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 the 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 income
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 income over the periods in which the costs that they are intended to compensate are



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incurred. The income, 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 income
Long-term deferred income comprises deferred income 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 income is restated under other income in proportion to
the depreciation of environmental fixed assets. The portion of the deferred income attributable
to the period under 12 months is moved to the current deferred income.
n. Revenue from contracts with customers
Revenue from contracts with customers is recognised once the control of goods or services is
transferred to a customer in 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.
Fuels and petroleum products segment revenue includes sales of petroleum products, sales
of LPG and other alternative energy (compressed natural gas), the transport, storage and
handling of fuels, payment card revenues, and sales of biomass, tyres and tubes, and batteries.
Merchandise and services segment revenue includes the sale of foodstuffs, haberdashery,
tobacco products, lotteries, coupons and cards, coffee on the go, Fresh products, car
cosmetics and spare parts, as well as car wash services, sales promotion services and other
services.
Energy and solutions segment revenue includes the sale and trading of electricity and
natural gas, the sale of energy solutions (energy and environmental management systems for
buildings, water systems, efficient lighting systems, district energy, water treatment, industrial
solutions), the sale of heating systems, natural gas distribution systems, mobility and energy
product production.
Other segment revenue includes mining services, maintenance services, rent from holiday
accommodation.
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 the goods.
Gains on commodity forward contracts are also recognised as revenue from the sale of goods,
where there is an actual physical delivery of electricity.



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Transportation is not recognised in the revenue from the sale of goods as it is charged
separately and recognised in the revenue from services.
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 the 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 separately recognises revenue from the sale of goods and
finance income deferred over the entire contract term. The finance income to total purchase
price ratio is assessed based on discounted future cash flows flowing to the Company based
on the sale. The Company mainly sells solar power plants on an instalment basis.
Sale in the name and for the account of third parties
The Company 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, segment merchandise
and services.
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.
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 the payment of the consideration is due). See the
accounting policies on the recognition of financial assets in the section Financial assets.
Contract liabilities
A contract liability is an 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 received prepayments, 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
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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, 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.
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 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.
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 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.




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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 assets 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.
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 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 on 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).




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The fair value of commodity derivatives equals their market price on 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 the owners of the
controlling company 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 the
owners of the controlling company 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 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 2021 and 31 December 2022 and data derived from the statement of profit or
loss for the period January to December 2022. The default interest paid and received in
connection with operating receivables and interest on loans are allocated to cash flows from
operating activities. The dividends paid are allocated to cash flows from financing activities and
dividends received are allocated to the cash flows from investment 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
as of 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 to 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.




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The Group/Company is currently assessing the impact of the amendments and plans to adopt
them on the required effective date.
Amendments to the IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting
policies (issued on 12 February 2021 and effective for annual periods beginning on or
after 1 January 2023).
The IAS 1 was amended to require companies to disclose their material accounting policy
information rather than their significant accounting policies. The amendment provided the
definition of material accounting policy information. The amendment also clarified that
accounting policy information is expected to be material if, without it, the users of the financial
statements would be unable to understand other material information in the financial
statements. The amendment provided illustrative examples of accounting policy information
that is likely to be considered material to the entity’s financial statements. Further, the
amendment to the IAS 1 clarified that immaterial accounting policy information need not be
disclosed. However, if it is disclosed, it should not obscure material accounting policy
information. To support this amendment, the IFRS Practice Statement 2, ‘Making Materiality
Judgements’ was also amended to provide guidance on how to apply the concept of materiality
to accounting policy disclosures.
The Group/Company is currently assessing the impact of the amendments and plans to adopt
them on the required effective date.
IFRS 17 "Insurance Contracts" (issued on 18 May 2017 and effective for annual periods
beginning on or after 1 January 2023).
IFRS 17 replaces IFRS 4, which has given companies dispensation to carry on accounting for
insurance contracts using existing practices. As a consequence, it was difficult for investors to
compare and contrast the financial performance of otherwise similar insurance companies.
IFRS 17 is a single principle-based standard to account for all types of insurance contracts,
including reinsurance contracts that an insurer holds. The standard requires recognition and
measurement of groups of insurance contracts at: (i) a risk-adjusted present value of the future
cash flows (the fulfilment cash flows) that incorporates all of the available information about
the fulfilment cash flows in a way that is consistent with observable market information; plus (if
this value is a liability) or minus (if this value is an asset) (ii) an amount representing the
unearned profit in the group of contracts (the contractual service margin). Insurers will be
recognising the profit from a group of insurance contracts over the period they provide
insurance coverage, and as they are released from risk. If a group of contracts is or becomes
loss-making, an entity will be recognising the loss immediately.
The amendments are not expected to have impact on the Group’s consolidated financial
statements or the Company’s separate financial statements.
Amendments to IFRS 17 and an amendment to IFRS 4 (issued on 25 June 2020 and
effective for annual periods beginning on or after 1 January 2023).
The amendments include a number of clarifications intended to ease implementation of IFRS
17, simplify some requirements of the standard and transition. The amendments relate to eight
areas of IFRS 17, and they are not intended to change the fundamental principles of the
standard. The following amendments to IFRS 17 were made:
Effective date: The effective date of IFRS 17 (incorporating the amendments) has been
deferred by two years to annual reporting periods beginning on or after 1 January 2023;
and the fixed expiry date of the temporary exemption from applying IFRS 9 in IFRS 4 has
also been deferred to annual reporting periods beginning on or after 1 January 2023.
Expected recovery of insurance acquisition cash flows: An entity is required to allocate part
of the acquisition costs to related expected contract renewals, and to recognise those costs
as an asset until the entity recognises the contract renewals. Entities are required to assess




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the recoverability of the asset at each reporting date, and to provide specific information
about the asset in the notes to the financial statements.
Contractual service margin attributable to investment services: Coverage units should be
identified, considering the quantity of benefits and expected period of both insurance
coverage and investment services, for contracts under the variable fee approach and for
other contracts with an ‘investment-return service’ under the general model. Costs related
to investment activities should be included as cash flows within the boundary of an
insurance contract, to the extent that the entity performs such activities to enhance benefits
from insurance coverage for the policyholder.
Reinsurance contracts held recovery of losses: When an entity recognises a loss on initial
recognition of an onerous group of underlying insurance contracts, or on addition of
onerous underlying contracts to a group, an entity should adjust the contractual service
margin of a related group of reinsurance contracts held and recognise a gain on the
reinsurance contracts held. The amount of the loss recovered from a reinsurance contract
held is determined by multiplying the loss recognised on underlying insurance contracts
and the percentage of claims on underlying insurance contracts that the entity expects to
recover from the reinsurance contract held. This requirement would apply only when the
reinsurance contract held is recognised before or at the same time as the loss is recognised
on the underlying insurance contracts.
Other amendments: Other amendments include scope exclusions for some credit card (or
similar) contracts, and some loan contracts; presentation of insurance contract assets and
liabilities in the statement of financial position in portfolios instead of groups; applicability
of the risk mitigation option when mitigating financial risks using reinsurance contracts held
and non-derivative financial instruments at fair value through profit or loss; an accounting
policy choice to change the estimates made in previous interim financial statements when
applying IFRS 17; inclusion of income tax payments and receipts that are specifically
chargeable to the policyholder under the terms of an insurance contract in the fulfilment
cash flows; and selected transition reliefs and other minor amendments.
The amendments are not expected to have impact on the Group’s consolidated financial
statements or the Company’s separate financial statements.
Amendments to the IAS 8: Definition of Accounting Estimates (issued on 12 February
2021 and effective for annual periods beginning on or after 1 January 2023).
The amendment to the IAS 8 clarified how companies should distinguish changes in
accounting policies from changes in accounting estimates.
The Group/Company is currently assessing the impact of the amendments and plans to adopt
them on the required effective date.
Deferred tax related to assets and liabilities arising from a single transaction
Amendments to the IAS 12 (issued on 7 May 2021 and effective for annual periods
beginning on or after 1 January 2023).
The amendments to the IAS 12 specify how to account for deferred tax on transactions such
as leases and decommissioning obligations. In specified circumstances, entities are exempt
from recognising deferred tax when they recognise assets or liabilities for the first time.
Previously, there had been some uncertainty about whether the exemption applied to
transactions such as leases and decommissioning obligations transactions for which both an
asset and a liability are recognised. The amendments clarify that the exemption does not apply
and that entities are required to recognise deferred tax on such transactions. The amendments
require companies to recognise deferred tax on transactions that, on initial recognition, give
rise to equal amounts of taxable and deductible temporary differences.
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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Transition option to insurers applying IFRS 17 Amendments to IFRS 17 (issued on 9
December 2021 and effective for annual periods beginning on or after 1 January 2023).
The amendment to the transition requirements in IFRS 17 provides insurers with an option
aimed at improving the usefulness of information to investors on initial application of IFRS 17.
The amendment relates to insurers’ transition to IFRS 17 only and does not affect any other
requirements in IFRS 17. The transition requirements in IFRS 17 and IFRS 9 apply at different
dates and will result in the following one-time classification differences in the comparative
information presented on initial application of IFRS 17: accounting mismatches between
insurance contract liabilities measured at current value and any related financial assets
measured at amortised cost; and
254
fan entity chooses to restate comparative information for
IFRS 9, classification differences between financial assets derecognised in the comparative
period (to which IFRS 9 will not apply) and other financial assets (to which IFRS 9 will apply).
The amendment will help insurers to avoid these temporary accounting mismatches and,
therefore, will improve the usefulness of comparative information for investors. It does this by
providing insurers with an option for the presentation of comparative information about financial
assets. When initially applying IFRS 17, entities would, for the purpose of presenting
comparative information, be permitted to apply a classification overlay to a financial asset for
which the entity does not restate IFRS 9 comparative information. The transition option would
be available, on an instrument-by-instrument basis; allow an entity to present comparative
information as if the classification and measurement requirements of IFRS 9 had been applied
to that financial asset, but not require an entity to apply the impairment requirements of IFRS
9; and require an entity that applies the classification overlay to a financial asset to use
reasonable and supportable information available at the transition date to determine how the
entity expects that financial asset to be classified applying IFRS 9.
The amendments are not expected to have impact on the Group’s consolidated financial
statements or the Company’s separate financial statements.
Amendments to the IFRS 16 Leases: Lease Liability in a Sale and Leaseback (issued on
22 September 2022 and effective for annual periods beginning on or after 1 January
2024).
The amendments relate to sale and leaseback transactions that satisfy the requirements in the
IFRS 15 to be accounted for as a sale. The amendments require the seller-lessee to
subsequently measure liabilities arising from the transaction and in such a way that it does not
recognise any gain or loss related to the right of use that it retained. This means the deferral
of such a gain even if the obligation is to make variable payments that do not depend on an
index or a rate. 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.
Classification of liabilities as current or non-current Amendments to the IAS 1
(originally issued on 23 January 2020 and subsequently amended on 15 July 2020 and
31 October 2022, ultimately effective for annual periods beginning on or after 1 January
2024).
These amendments clarify that liabilities are classified as either current or non-current,
depending on the rights that exist at the end of the reporting period. Liabilities are non-current
if the entity has a substantive right, at the end of the reporting period, to defer settlement for at
least twelve months. The guidance no longer requires such a right to be unconditional. The
October 2022 amendment established that loan covenants to be complied with after the
reporting date do not affect the classification of debt as current or non-current at the reporting
date. The Management’s expectations of whether they will subsequently exercise the right to
defer settlement do not affect the classification of liabilities. A liability is classified as current if
a condition is breached at or before the reporting date even if a waiver of that condition is
obtained from the lender after the end of the reporting period. Conversely, a loan is classified




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as non-current if a loan covenant is breached only after the reporting date. In addition, the
amendments include clarifying the classification requirements for debt that a company might
settle by converting it into equity. ‘Settlement’ is defined as the extinguishment of a liability with
cash, other resources embodying economic benefits or an entity’s own equity instruments.
There is an exception for convertible instruments that might be converted into equity, but only
for those instruments where the conversion option is classified as an equity instrument as a
separate component of a compound financial instrument. 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.


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 Board (Chief Operating Decision Maker) to make decisions about resources to
be allocated to a segment and assess the Group’s performance.
In June 2021, the Petrol Group adopted a new corporate structure for the Company and the
Petrol Group. The reorganisation was carried out 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
reorganisation is reflected in stronger market integration, a regional approach and the
standardisation of business processes. It brings more efficient processes, the unification and
optimisation of the operation of support functions, customer focus and a unified presence on
the markets in subsidiaries. For segment reporting, the product group is used as a benchmark.
Segment reporting is presented in more detail in the business section of the report in chapter
Analysis of the business performance of the Petrol Group’s operations in 2022 and in the
chapter Business by product group.
As of 1 January 2022, the Management Board monitors data at four segments.
The Group uses the following segments both in the preparation and presentation of its financial
statements:
- fuels and petroleum products,
- merchandise and services,
- energy and solutions,
- other.
Fuels and petroleum products include:
- sales of petroleum products,
- sales of liquefied petroleum gas and other alternative energy products,
- transport, storage and handling of fuels,
- revenue from payment cards,
- biomass sales,
- sale of tyres, inner tubes and batteries.



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Merchandise and services include:
- sales of foodstuffs, haberdashery, tobacco products, lotteries, coupons and cards,
- selling Coffee-to-go and Fresh products,
- sales of car cosmetics, spare parts and car wash services,
- sales promotion and other services, and
- rental of catering facilities.
Energy and solutions include:
- electricity and natural gas sales and trading,
- sales of energy solutions,
- sales of heating systems,
- distribution of natural gas,
- mobility, and
- production of energy products.
Other includes:
- mining services,
- maintenance services,
- rent from holiday accommodation.
The data for the comparative period has also been adjusted to the new method of reporting on
segments.
The Group’s operating segments in 2021:
(in EUR)
Fuels and
petroleum
products
Merchandise
and services
Energy and
solutions
Other
Total
Statement of
profit or loss
Sales revenue
2,676,612,412
470,372,591
2,453,988,995
9,693,281
5,610,667,279
Revenue from
subsidiaries
(507,079,552)
(858,794)
(139,173,375)
(3,429,593)
(650,541,314)
Sales revenue
2,169,532,860
469,513,797
2,314,815,620
6,263,688
4,960,125,965
4,960,125,965
Cost of goods sold
(1,858,167,801)
(352,318,850)
(2,206,051,719)
(163,145)
(4,416,701,515)
(4,416,701,515)
Adjusted gross profit
311,365,060
117,194,947
108,763,901
6,100,543
543,424,450
543,424,450
Operating profit or loss
78,412,083
49,999,343
20,891,531
1,825,837
151,128,793
151,128,793
Depreciation of property,
plant and equipment,
depreciation of right-of-
use assets, depreciation
of investment property
and amortisation of
intangible assets
(64,326,701)
8,464,079
(23,161,381)
(67,755)
(79,091,758)
(79,091,758)
EBITDA
127,069,934
60,753,573
48,024,779
2,286,360
238,134,646
238,134,646
Depreciation and
amortisation
(79,091,758)
Net allowance for trade
receivables
(7,914,095)
Share of profit or loss of
equity accounted
investees
2,583,771
Net finance expense
(2,264,537)
Profit/(loss) before tax
151,448,027
EBITDA and adjusted gross profit are an alternative performance measures.
EBITDA = Operating profit + Net Allowances for operating receivables + Depreciation and amortisation charge.
Adjusted gross profit = Sale revenue Cost of goods sold



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The Group’s operating segments in 2022:
(in EUR)
Fuels and
petroleum
products
Merchandise
and services
Energy and
solutions
Other
Total
Statement of
profit or loss
Sales revenue
5,937,520,958
520,514,114
4,865,131,891
12,177,973
11,335,344,937
Revenue from
subsidiaries
(1,562,312,529)
(405,121)
(310,896,174)
(4,997,616)
(1,878,611,439)
Sales revenue
4,375,208,430
520,108,993
4,554,235,718
7,180,357
9,456,733,497
9,456,733,497
Cost of goods sold
(4,160,047,021)
(374,422,267)
(4,528,784,668)
(30,992)
(9,063,284,948)
(9,063,284,948)
Adjusted gross profit
215,161,408
145,686,726
25,451,050
7,149,365
393,448,549
393,448,549
Operating profit or loss
(59,732,637)
59,836,856
(13,837,601)
5,820,510
(7,912,872)
(7,912,872)
Depreciation of property,
plant and equipment,
depreciation of right-of-
use assets, depreciation
of investment property
and amortisation of
intangible assets
(58,516,999)
(8,544,958)
(28,214,192)
(1,023,922)
(96,300,070)
(96,300,070)
EBITDA
2,456,353
68,818,327
18,198,835
6,844,432
96,317,947
96,317,947
Depreciation and
amortisation
(96,300,070)
Net allowance for trade
receivables
(7,930,749)
Share of profit or loss of
equity accounted
investees
3,328,395
Net finance expense
(5,228,875)
Profit/(loss) before tax
(9,813,352)
EBITDA and adjusted gross profit are an alternative performance measures.
EBITDA = Operating profit + Net Allowances for operating receivables + Depreciation and amortisation charge.
Adjusted gross profit = Sale revenue Cost of goods sold
Assets and net investments are not disclosed by segment. They are reported by geographical
area, as reviewed by the Management Board.
Additional information about the geographic areas in which the Group operates:
Sales revenue
Total assets
Net investments
(in EUR)
2022
2021
31 December
2022
31 December
2021
2022
2021
Slovenia
4,017,985,870
2,318,794,060
1,674,869,418
1,385,093,355
35,563,085
37,883,262
Croatia
1,622,605,372
892,630,457
735,407,533
729,205,431
19,592,304
188,763,187
Austria
468,110,434
189,705,906
5,070,379
2,521,013
-
-
Bosnia and Herzegovina
355,988,228
157,179,446
93,997,700
84,410,027
357,945
158,544
Serbia
233,284,499
126,953,533
116,865,024
97,542,278
4,046,258
6,256,121
Montenegro
83,258,002
42,138,531
35,279,180
34,663,240
227,712
142,741
Macedonia
6,457,655
7,185,333
228,555
737,181
-
-
Romania
4,279,766
26,828,155
508,318
474,400
-
-
Other countries
2,664,763,671
1,198,710,544
1,941,861
1,920,285
7,710
-
9,456,733,497
4,960,125,965
2,664,167,968
2,336,567,210
59,795,014
233,203,855
Jointly controlled entities
1,277,748
704,501
Associates
56,968,277
55,169,626
Unallocated assets
18,190,424
11,379,674
Total assets
2,740,604,417
2,403,821,011
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.
Net investments are acquisitions and disposals of property, plant and equipment, intangible
assets and long-term investments of the Group.



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6. Notes on individual items in the financial statements
6.1 Business combinations
a. Acquisitions
The Group did not acquire a new company in 2022.
b. Definitive allocation of the purchase price in 2022 in the subsidiaries acquired in
2021
Crodux derivati dva d.o.o.
Under a contract for the sale and purchase of interests, which was concluded in 2021, 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 control 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.
Because the business combination took place at the end of 2021 and the fair value of the
assets as at 31 December 2021 could not be determined with certainty, the acquired assets
as at 31 December 2021 were recognised at provisional values.
In 2022, 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 the purchase price. The fair value of property, plant and equipment
and rights to use leased assets was estimated using the present value method of expected
cash flows, which are based on the future financial plans of the Company.
The valuation applied the company's five-year financial plans, a required after-tax rate of return
of 9.63% and an annual growth rate of residual free cash flow of 1.5%.
Goodwill was assessed at the aggregate level of the acquired company as Crodux derivati dva
d.o.o. is one cash-generating unit from the Group's perspective.



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The company’s statement of financial position as at the day the Company gained control is as
follows:
(in EUR)
Restated fair value
Provisional fair
value
Cash and cash equivalents
9,891,052
9,891,052
Intangible assets
7,713,630
5,328,030
Right-of-use assets
67,053,363
47,507,231
Property, plant and equipment
157,966,847
67,907,084
Investment property
120,243
120,243
Deferred tax assets
571,383
571,383
Inventories
23,406,527
21,581,519
Contract assets
128,366
128,366
Loans
80,520,260
80,520,260
Operating receivables
51,379,005
51,589,121
Prepayments and other assets
822,789
822,789
Assets
399,573,465
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
Deferred tax liabilities
20,449,150
-
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
263,610,587
243,161,437
Net assets upon acquisition
135,962,878
42,805,641
Purchase price
191,700,000
191,700,000
Deferred payment
10,000,000
10,000,000
Goodwill
55,737,122
148,894,359
Amount paid
181,700,000
181,700,000
Cash and cash equivalents
9,891,052
9,891,052
Net payment
171,808,948
171,808,948
In 2022, 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 the purchase price and reflecting it in the 2021 financial statements.
For more details, see Note 2.f.
c. Business combinations in 2021
In 2021, the Group acquired Crodux derivati dva d.o.o. and E 3, d.o.o. The disclosures related
to Crodux derivati dva d.o.o. are presented in paragraph 6.1 b and for E 3 d.o.o. below.
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 control 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.



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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 the day of gaining control 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.
The statement of the acquired assets as at the day when the Group gained control is presented
in the table:
(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
Purchase price
14,950,000
-
Bargain purchase
1,179,726
-
Amount paid
14,950,000
-
Cash and cash equivalents
792,219
-
Net payment
14,157,781
-
The Group recognised the bargain purchase in other finance income in the 2021 income
statement.

6.2 Changes within the Group
In 2022, Petrol d.d.:
Acquired an additional 0.06 percent interest in Geoplin d.o.o., becoming a 74.34 percent
owner of the company.
Acquire a 50 percent interest in a jointly controlled company Vjetroelektrana Dazlin d.o.o.
in April 2022.
Crodux derivati dva d.o.o. was merged into Petrol d.o.o., Zagreb in November 2022. The
upstream merger had no impact on the Group’s financial statements as Petrol d.d. was the
sole owner of Crodux derivati dva d.o.o.


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In December 2022, Ekoen GG d.o.o. was merged into Ekoen d.o.o. with an effective date of
30 September 2022. The upstream merger had no impact on the Group’s financial statements
as Ekoen d.o.o., a subsidiary of Petrol d.d., was its sole owner.
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, which
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 good
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Revenue from the sale of merchandise
9,309,295,575
4,839,400,223
7,207,075,854
3,460,089,296
Revenue from the sale of services
123,382,883
100,885,679
100,767,046
89,574,535
Revenue from the sale of products
24,055,039
19,840,063
17,482,620
12,803,708
Total revenue
9,456,733,497
4,960,125,965
7,325,325,520
3,562,467,539
Sales revenue by sales market
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
EU market sales revenue
4,168,513,223
2,318,794,060
3,093,819,919
2,307,448,117
Domestic sales revenue
4,017,985,870
2,040,354,381
3,595,285,373
1,079,437,479
Non-EU market sales revenue
1,270,234,404
600,977,524
636,220,228
175,581,943
Total revenue
9,456,733,497
4,960,125,965
7,325,325,520
3,562,467,539



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Sales revenue by operating segment
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Fuels and petroleum products
4,375,208,430
2,169,532,860
3,817,278,960
1,697,126,445
Merchandise and services
520,108,993
469,513,797
368,774,771
390,798,929
Energy and solutions
4,554,235,718
2,314,815,620
3,132,243,066
1,468,935,919
Other
7,180,357
6,263,688
7,028,723
5,606,246
Total revenue
9,456,733,497
4,960,125,965
7,325,325,520
3,562,467,539
The Group’s/Company’s sales revenue includes rental income. In 2022, the Group generated
EUR 4,593,925 in rental income (2021: EUR 4,083,960) and the Company EUR 3,369,870
(2021: EUR 3,068,650).
Other revenue
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Gain on disposal of plan, property and
equipment
2,826,755
694,563
820,584
367,422
Compensation received from insurance
companies
269,380
244,184
28,442
103,091
Compensation, lawsuits, contractual
penalties received
129,603
997,066
54,275
807,961
Payment of court fees
123,884
131,183
100,978
79,213
Other income
99,071,440
5,349,657
5,439,646
3,625,362
Total other income
102,421,062
7,416,653
6,443,925
4,983,049
Geoplin d.o.o.'s business with the supplier Gazprom
In 2022, the subsidiary Geoplin d.o.o. recorded a negative operating result due to the non-
delivery of natural gas under a long-term contract with Russia's Gazprom.
We have analysed the damages arising from our business with Gazprom and have identified
the following realised damages up to the end of 2022, totalling EUR 140.3 million:
- EUR 43.2 million from realised losses due to the non-delivery of the current years supplies
and the cost of replacement purchases of natural gas, and
- EUR 97.1 million losses on undelivered leased volumes of natural gas at fixed prices from
previous years.
On 27 December 2022, we notified Gazprom of the realised damages and that our outstanding
liability to Gazprom for natural gas delivered for the months of October and November 2022,
totalling EUR 92.1 million, would be set off against a pro rata share of our claims for damages.
On 27 December 2022, we notified Gazprom of the termination of the contract due to the non-
delivery of natural gas and to prevent further damage.
As a result of the above, we have derecognised the liabilities to Gazprom for natural gas
delivered in the months of October and November 2022, totalling EUR 92,142 thousand, and
have re-recognised and re-measured them at fair value as at 31 December 2022 in the amount
of EUR 3,550 thousand.
Among other income, EUR 88,592 thousand relates to the revaluation of the liability to
Gazprom to fair value based on an independent valuer’s valuation.




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The valuation is based on a scenario method of different present values of the expected cash
flows from the liability. The valuation of the liabilities takes into account the offsetting of our
claims for damages arising from our business with Gazprom against Gazprom's liabilities. The
claims for damages exceed our liabilities to Gazprom. The valuation used required rates of
return ranging between 15 and 25 percent.
The fair value of the liability to Gazprom represents 4 percent of the historical cost. If the range
of discount rates were increased or decreased, the fair value would decrease by EUR 90
thousand and increase by EUR 130 thousand, respectively. We estimate that a change in the
remaining assumptions would not have a material effect on the fair value of these liabilities.


6.4 Costs of materials
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Costs of energy
30,102,486
21,471,005
23,082,756
18,411,758
Costs of consumables
8,132,585
6,867,875
4,954,424
4,908,925
Write-off of small tools
95,790
137,680
27,675
82,889
Other costs of materials
1,092,983
819,464
525,526
415,192
Total costs of materials
39,423,844
29,296,024
28,590,381
23,818,764
6.5 Costs of services
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Costs of transport services
45,471,308
33,146,816
34,779,327
25,813,408
Costs of service station managers
32,639,895
30,812,368
32,639,895
30,812,368
Costs of fixed-asset maintenance services
28,743,771
24,904,966
19,723,393
18,793,301
Costs of payment transactions and bank
services
15,959,548
12,872,038
10,044,627
7,960,337
Costs of professional services
11,889,278
9,428,504
8,008,946
6,952,438
Lease payments
9,577,561
8,441,011
8,898,635
5,965,952
Costs of fairs, advertising and entertainment
7,710,875
6,705,784
4,844,865
4,274,674
Costs of insurance premiums
6,922,009
4,880,292
4,208,387
2,891,553
Outsourcing costs
5,304,401
4,034,087
4,962,756
3,734,872
Costs of environmental protection services
2,496,177
2,094,424
1,507,812
1,343,340
Costs of fire protection and physical and
technical security
2,316,803
2,289,964
1,555,505
1,763,982
Membership fees
1,633,669
865,602
245,944
208,848
Property management
1,601,807
1,206,789
1,200,794
906,228
Reimbursement of work-related costs to
employees
1,463,794
969,200
864,523
508,490
Other costs of services
6,406,429
5,046,074
2,585,819
2,275,198
Total costs of services
180,137,325
147,697,919
136,071,228
114,204,989
The Petrol Group
The costs of professional services include the cost of services performed by the auditors of the
annual report of EUR 308,150 (2021: EUR 231,465). Auditing services comprise the fee for



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the auditing of the annual report of EUR 300,150 (2021: EUR 193,565). Other, non-auditing
services stood at EUR 8,000 in 2022 (2021: EUR 37,900).
Petrol d.d., Ljubljana
The costs of professional services include the cost of services performed by the auditors of the
annual report of EUR 93,000 (2021: EUR 73,000). Auditing services comprise the fee for the
auditing of the annual report of EUR 88,000 (2021: EUR 72,600). Other, non-auditing services
stood at EUR 5,000 in 2022 (2021: EUR 400).
Lease expenses
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Depreciation of right-of-use assets
21,260,001
12,802,769
4,347,502
3,983,028
Finance expenses
4,557,812
2,425,310
1,315,973
1,291,951
Lease expenses
9,577,561
8,441,011
8,898,635
5,965,952
Total recognised costs/expenses
35,395,374
23,669,090
14,562,110
11,240,931
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
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Salaries
100,503,917
85,401,258
60,753,400
58,731,102
Costs of other social insurance
9,309,380
7,576,461
4,623,943
4,234,369
Expense for define contribution plan
6,842,468
6,691,637
5,393,248
5,604,526
Transport allowance
4,328,999
3,340,708
2,064,078
1,916,044
Annual leave allowance
4,038,516
2,816,497
3,398,196
2,343,077
Meal allowance
3,813,618
3,479,550
2,642,735
2,669,093
Supplementary pension insurance
1,928,255
1,648,409
1,800,820
1,520,449
Other allowances and reimbursements
4,797,156
3,386,989
1,452,877
1,300,331
Total labour costs
135,562,309
114,341,509
82,129,297
78,318,991
In line with the measures taken by countries to contain the COVID-19 epidemic, in 2022, the
Group made use of measures relating to the unconditional reimbursement of labour costs of
EUR 28,428 (2021: EUR 613,261) recording their effects as a decrease in labour costs.
In line with the measures taken by the state to contain the COVID-19 epidemic, in 2022, the
Company made use of measures relating to the unconditional reimbursement of labour costs
of EUR 28,428 (2021: EUR 357,311) recording this as a decrease in labour costs.



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Number of employees by formal education level as at 31 December 2021
The Petrol Group
Petrol d.d.
Group
employees
Employees
at third-
party
managed
service
stations
Total
Company
employees
Employees
at third-
party
managed
service
stations
Total
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
Number of employees by formal education level as at 31 December 2022
The Petrol Group
Petrol d.d.
Group
employees
Employees
at third-
party
managed
service
stations
Total
Company
employees
Employees
at third-
party
managed
service
stations
Total
Level I
38
5
43
14
5
19
Level II
63
21
84
28
21
49
Level III
100
7
107
10
7
17
Level IV
1,777
264
2,041
353
264
617
Level V
1,836
589
2,425
858
589
1,447
Level VI
323
48
371
164
48
212
Level VII
662
60
722
378
60
438
Level VII/2
399
16
415
343
16
359
Level VIII
16
-
16
7
-
7
Total
5,214
1,010
6,224
2,155
1,010
3,165
On average, the Group and the Company had 6,224 and 2,128 employees in 2022,
respectively (2021: 5,387 and 2,122).


6.7 Depreciation and amortisation
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Depreciation of property, plant and equipment
60,365,040
51,689,896
31,742,704
32,282,770
Depreciation of right-of-use assets
21,260,001
12,802,769
4,347,502
3,983,028
Amortisation of intangible assets
13,605,265
13,229,924
9,749,159
9,676,444
Depreciation of investment property
1,069,764
1,369,169
677,760
754,429
Total depreciation and amortisation
96,300,070
79,091,758
46,517,125
46,696,671



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6.8 Other costs
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Net allowance for trade receivables
7,930,749
7,914,095
2,990,233
3,003,074
Environmental charges and charges unrelated to
operations
7,891,323
6,534,253
3,567,023
4,099,121
Impairment of PPE, investment property and inventories
6,194,071
14,259,583
7,024
2,705,061
Sponsorships and donations
2,404,579
2,034,138
1,788,066
1,581,268
Loss on sale/disposal of property, plant and equipment
518,057
1,321,765
324,091
1,021,237
Impairment of investments
-
-
-
11,193,296
Other costs (reversal of other provisions and other
liabilities)
(8,462,620)
30,548,619
(593,642)
26,256,662
Total other costs
16,476,159
62,612,453
8,082,795
49,859,719
In 2022, the Group/Company reversed part of the long-term provisions. The value of the
reversal of long-term provisions exceeds the value of the provisions made, which is reflected
in the negative value of the reversal of other provisions and other liabilities.
The impairment of the Group’s assets relates to the impairment of inventories to the net
realisable value of EUR 6,194,071 (2021: EUR 7,205,752)
Among other costs, EUR 20,924,453 in the Group/Company in 2021 relates to the costs of
recognising short-term provisions from onerous contracts with customers for the supply of
electricity, which were used up in 2022. This note should be read in conjunction with Notes 6.9
and 6.42.

6.9 Gain/(Loss) from derivatives
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Gain from derivatives
523,094,819
269,931,980
525,064,103
269,846,734
Loss from derivatives
(558,699,150)
(235,728,482)
(551,271,270)
(236,333,237)
Gain/(Loss) from derivatives
(35,604,331)
34,203,498
(26,207,167)
33,513,497
Gains and losses increased in 2022 compared to 2021 due to the higher market electricity
prices and increased volatility of these prices.

6.10 Interests and dividends
Shares of the profit or loss of equity-accounted investees of the Petrol Group
The Petrol Group
(in EUR)
2022
2021
Plinhold d.o.o.
1,646,458
1,424,430
Aquasystems d.o.o.
912,173
814,857
Knešca d.o.o.
104,281
48,026
Ivicom Energy d.o.o.
-
(3,582)
Total net profit of associates
2,662,912
2,283,731
Geoenergo d.o.o.
(246,684)
187,370
Soenergetika d.o.o.
912,333
112,670
Vjetroelektrana Dazlina d.o.o.
(166)
-
Total net profit of jointly controlled entities
665,483
300,040
Total net finance income from interests
3,328,395
2,583,771


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Finance income from dividends paid by subsidiaries, associates and jointly controlled
entities of Petrol d.d., Ljubljana
Petrol d.d.
(in EUR)
2022
2021
Geoplin d.o.o. Ljubljana
-
958,260
Petrol Hidroenergija d.o.o.
299,422
713,159
Petrol Trade Handelsgesellschaft m.b.H.
423,738
151,905
Total subsidiaries
723,160
1,823,324
Aquasystems d.o.o.
814,437
763,964
Plinhold d.o.o.
-
564,272
Total associates
814,437
1,328,236
Soenergetika d.o.o.
115,217
135,495
Total jointly controlled entities
115,217
135,495
Total finance income from interests
1,652,814
3,287,054

6.11 Finance income and expenses
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Foreign exchange differences
80,079,268
15,516,194
74,011,689
12,635,432
Gain on derivatives
19,687,756
4,525,059
19,687,756
7,093,905
Interest income
5,337,485
10,065,835
5,455,669
3,279,520
Loss allowances for financial receivables
reversed
638,125
343,056
638,125
343,056
Other finance income
3,506,782
1,383,319
3,525,648
136,286
Total finance income
109,249,416
31,833,463
103,318,887
23,488,199
Foreign exchange differences
(80,848,842)
(20,417,028)
(74,625,841)
(16,601,747)
Loss on derivatives
(16,624,554)
(2,016,266)
(16,624,554)
(2,016,266)
Interest expense
(14,427,380)
(9,189,739)
(11,331,719)
(9,218,597)
Impairment of goodwill
-
(873,366)
-
-
Other finance expenses
(2,577,515)
(1,601,601)
(2,438,888)
(1,628,763)
Total finance expenses
(114,478,291)
(34,098,000)
(105,021,002)
(29,465,373)
Net finance expense
(5,228,875)
(2,264,537)
(1,702,115)
(5,977,174)




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6.12 Income tax expenses
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Current tax expense
(4,258,179)
(30,683,697)
(786,831)
(18,781,868)
Deferred tax
11,385,725
3,717,031
2,346,643
1,867,467
Taxes
7,127,546
(26,966,666)
1,559,812
(16,914,401)
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Profit/(Loss) before tax
(9,813,352)
151,448,027
17,824,066
83,397,343
Tax at effective tax rate
(1,864,537)
28,775,125
3,386,573
15,845,495
Tax effect of untaxed revenue
(4,750,994)
(3,009,646)
(3,443,483)
(2,278,094)
Tax effect of expenses not deducted on tax
assessment
152,605
1,794,663
(1,502,902)
3,347,000
Effect of higher/lower tax rates for companies abroad
(664,620)
(593,476)
-
-
Taxes
(7,127,546)
26,966,666
(1,559,812)
16,914,401
Effective tax rate
72.63 %
17.81 %
-8.75 %
20.28 %
As at 31 December 2022, the Group has a corporate income tax receivable of EUR 23,897,315
(2021: EUR 616,729) and EUR 1,062,768 in income tax liabilities (2021: EUR 18,786,511).
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 2022 (2021: 19
percent), whereas the Group’s tax rates ranged from 9 to 25 percent.
Changes in deferred taxes of the Petrol Group
Deferred tax assets
(in EUR)
Investments
Provisions
Allowance
for
receivables
and
impairment
of assets
Inventories
Tax loss
Depreciation/
amortisation
Other
Total
As at 1 January 2021
1,568,770
3,242,729
6,540,846
100,499
557,962
42,093
454,506
12,507,405
Netting
(2,601,373)
Total net receivables as at 1 January
2021
9,906,032
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
10,260
(293,626)
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
52,353
258,254
17,009,777
Netting
(5,630,103)
Total net receivables as at 31
December 2021
11,379,674
(Charged)/credited to the statement of
profit or loss
(122,962)
(3,457,283)
(464,664)
1,062,075
8,183,166
5,120,454
(29,267)
10,291,519
(Charged)/credited to other
comprehensive income
3,003,714
-
-
-
-
-
-
3,003,714
Foreign exchange differences
216
(17,203)
(3,802)
(274)
(2,011)
-
(1,139)
(24,213)
As at 31 December 2022
3,582,778
2,152,282
8,800,807
1,176,131
9,168,144
5,172,807
227,848
30,280,797
Netting
(12,090,373)
Total net receivables as at 31
December 2022
18,190,424




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The Group has deferred tax assets for depreciation and amortisation arising from the difference
between tax and operating depreciation and amortisation.
Deferred tax liabilities
(in EUR)
Investments
Fixed assets
Other
Total
As at 1 January 2021
161,456
6,387,436
38,181
6,587,073
Netting
(2,601,373)
Total net liabilities as at 1 January 2021
3,985,700
New acquisitions as a result of control obtained
-
21,174,793
-
21,174,793
(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
(96,892)
-
(96,863)
As at 31 December 2021
153,956
27,381,250
48,135
27,583,341
Netting
(5,630,103)
Total net receivables as at 31 December 2021
21,953,238
(Charged)/credited to the statement of profit or loss
293
(1,146,350)
51,094
(1,094,963)
(Charged)/credited to other comprehensive income
6,337,345
-
-
6,337,345
Foreign exchange differences
(17)
(52,792)
-
(52,809)
As at 31 December 2022
6,491,577
26,182,108
99,229
32,772,914
Netting
(12,090,373)
Total net liabilities as at 31 December 2022
20,682,541

Changes in deferred taxes of Petrol d.d., Ljubljana
Deferred tax assets
(in EUR)
Investments
Provisions
Allowance
for
receivables
Depreciation/
amortisation
Other
Total
As at 1 January 2021
1,409,555
1,263,024
4,524,144
-
317,693
7,514,416
Netting
(602,411)
Total net receivables as at 1 January
2021
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
(Charged)/credited to the statement of profit
or loss
(65,938)
(2,374,477)
(186,129)
5,120,327
(147,140)
2,346,643
(Charged)/credited to other comprehensive
income
(177,418)
-
-
-
-
(177,418)
As at 31 December 2022
399,505
806,778
4,581,353
5,120,327
23,412
10,931,375
Netting
(6,943,982)
Total net receivables as at 31 December
2022
3,987,393



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The Group has deferred tax assets for depreciation and amortisation arising from the difference
between tax and operating depreciation and amortisation.
Deferred tax liabilities
(in EUR)
Investments
Fixed assets
Total
Total net liabilities as at 1 January 2021
-
-
-
As at 31 December 2021
145,380
461,256
606,636
Netting
(606,636)
Total net liabilities as at 31 December 2021
-
(Charged)/credited to other comprehensive income
6,337,346
-
6,337,346
As at 31 December 2022
6,482,726
461,256
6,943,982
Netting
(6,943,982)
Total net liabilities as at 31 December 2022
-

6.13 Earnings per share
The Petrol Group
Petrol d.d.
2022
2021
2022
2021
Net profit attributable to owners of the controlling
company (in EUR)
4,520,125
119,079,575
19,383,878
66,482,942
Number of shares issued
41,726,020
41,726,020
41,726,020
41,726,020
Number of own shares at the beginning of the
year
614,460
614,460
494,060
494,060
Number of own shares at the end of the year
614,460
614,460
494,060
494,060
Weighted average number of ordinary shares
issued
41,111,560
41,111,560
41,231,960
41,231,960
Diluted average number of ordinary shares
41,111,560
41,111,560
41,231,960
41,231,960
Basic and diluted earnings per share
attributable to owners of the controlling
company (EUR/share)
0.11
2.90
0.47
1.61
Basic earnings per share are calculated by dividing the net profit attributable to owners of the
parent company by the weighted average number of ordinary shares, excluding ordinary
shares owned by the Company/Group. The Group and the Company have no potential dilutive
ordinary shares, meaning the basic and diluted earnings per share are identical. Petrol's share
is listed on the main board of the stock exchange under the ticker PETG. For both years, the
number of shares after the 1: 20 split carried out in November 2022 is taken into account. The
total number of PETG shares increased from 2,086,301 to 41,726,020.

6.14 Other comprehensive income
The Petrol Group
The effective portion of the changes in the fair value of the cash flow variability hedging
instrument increased by EUR 17,755,033 (in 2021: an increase of EUR 4,109,730) and
decreased by the deferred tax effect of EUR 3,333,632 (in 2021: a decrease of EUR 772,591).


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The change relates to interest rate swap hedging, commodity derivative financial instruments
and forward contracts and increases the hedging reserve.
The balance of the hedging reserve is explained in Note 6.32.
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 34,292,220 (in 2021: an increase of EUR 3,283,988) and
decreased by the deferred tax effect of EUR 6,515,522 (in 2021: a decrease of EUR 623,957).
The change relates to interest rate swap hedging, commodity derivative financial instruments
and increases the hedging reserve.
The balance of the hedging reserve is explained in Note 6.32.
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 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
4,680,240
6,790,410
55,737,122
97,923
18,950
67,324,645
New acquisitions
448,882
76,570
-
6,363,213
387,945
7,276,610
Disposals
(347,753)
(7,183)
-
(47,110)
(279,602)
(681,648)
Impairments
-
-
(873,366)
-
-
(873,366)
Transfers between assets categories
201,150
-
-
-
(201,150)
-
Transfers between PPE and investment property
-
-
-
64,656
-
64,656
Transfer from ongoing investments
7,694,856
1,306,460
-
(9,001,316)
-
-
Foreign exchange differences
22,453
15,188
99,329
2,707
-
139,677
As at 31 December 2021
57,455,821
130,298,591
160,858,241
4,485,643
291,102
353,389,398
Accumulated amortisation
As at 1 January 2021
(26,023,005)
(59,455,652)
(13,536)
-
-
(85,492,193)
Amortisation
(7,892,334)
(5,337,590)
-
-
-
(13,229,924)
Disposals
262,355
6,834
-
-
-
269,189
Foreign exchange differences
(8,825)
(10,423)
(5,767)
-
-
(25,015)
As at 31 December 2021
(33,661,809)
(64,796,831)
(19,303)
-
-
(98,477,943)
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
65,501,760
160,838,938
4,485,643
291,102
254,911,455
*The Group finalised the allocation of the purchase price of Crodux derivati dva d.o.o. in 2022. The changes are
explained in Point 2.f.
In the prior year, value adjustments for new acquisitions due to control of the Company totalling
EUR 11,183,339 were recorded, but are now included in the reduction of the cost of new
acquisitions due to the acquisition of control of the Company.



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(in EUR)
Material and
other rights
Right to use
concession
infrastructure
Goodwill
Ongoing
investments
Long-term
deferred
costs
Total
Cost
As at 1 January 2022
57,455,821
130,298,591
160,858,241
4,485,643
291,102
353,389,398
New acquisitions
695,909
25,989
-
6,975,101
1,013,588
8,710,587
Disposals
(398,911)
(270,036)
(19,268)
(3,115)
(119,824)
(811,154)
Transfers between PPE and investment property
(57,863)
(5,477,567)
-
(955,289)
-
(6,490,719)
Transfer from ongoing investments
2,717,411
1,930,526
-
(4,647,937)
-
-
Foreign exchange differences
(16,979)
(34,498)
(153,661)
2,202
-
(202,936)
As at 31 December 2022
60,395,388
126,473,005
160,685,312
5,856,605
1,184,866
354,595,176
Accumulated amortisation
As at 1 January 2022
(33,661,809)
(64,796,831)
(19,303)
-
-
(98,477,943)
Amortisation
(8,035,813)
(5,569,452)
-
-
-
(13,605,265)
Disposals
235,361
261,887
19,268
-
-
516,516
Transfers between PPE and investment property
13,033
2,229,123
-
-
-
2,242,156
Foreign exchange differences
7,964
10,834
35
-
-
18,833
As at 31 December 2022
(41,441,264)
(67,864,439)
-
-
-
(109,305,703)
Net carrying amount as at 1 January 2022
23,794,012
65,501,760
160,838,938
4,485,643
291,102
254,911,455
Net carrying amount as at 31 December 2022
18,954,124
58,608,566
160,685,312
5,856,605
1,184,866
245,289,473
All the intangible assets presented herein are the property of the Group and are unpledged.
17.6 percent of all the intangible assets in use on 31 December 2022 were fully depreciated
(compared to 16.1 percent as at 31 December 2021).
The Group’s intangible fixed assets were tested for impairment as at 31 December 2022 and
no impairment of intangible fixed assets was identified.
In 2021, the Group impaired the goodwill of Zagorski metalac d.o.o. by EUR 873,366 on the
basis of a review of indicators.
Goodwill
Goodwill structure presented by business combination from which it originates is as follows:
The Petrol Group
(in EUR)
31 December 2022
31 December 2021
Instalacija d.o.o., Koper
1
85,266,022
85,266,022
Crodux derivati dva d.o.o.
2
55,666,513
55,780,012
Euro-Petrol d.o.o.
3
12,626,888
12,652,682
Vjetroelektrana Ljubač d.o.o.
2,579,423
2,584,691
Atet d.o.o.
2,434,972
2,434,972
Petrol-Jadranplin d.o.o.
4
747,045
748,569
Vjetroelektrane Glunča d.o.o.
357,979
358,710
Crodux Plin d.o.o.
264,429
280,768
Petrol-Butan d.o.o.
5
279,555
280,125
MBills d.o.o.
245,250
245,250
Adria-Plin d.o.o.
217,236
207,137
Total goodwill
160,685,312
160,838,938
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
Crodux derivati dva d.o.o. was merged into Petrol d.o.o., Ljubljana in 2022.
3
Euro-Petrol d.o.o. was renamed Petrol d.o.o.
4
Petrol-Jadranplin d.o.o. was renamed Petrol Plin d.o.o. and merged into Petrol d.o.o. in 2017.
5
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 2022, the Group recognised the assets of Crodux derivati dva d.o.o. at fair value in its
consolidated financial statements, thus definitively allocating of purchase price, which had only
been recognised temporarily in 2021. The impact on the financial statements is presented in
Note 6.1.



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Other changes in the value of goodwill are due to the translation of exchange rate differences.
In accordance with the IAS 36, goodwill was tested for impairment as at 31 December 2022.
The test showed no need for impairment.
The impairment of goodwill is recognised if its carrying amount exceeds its recoverable
amount. The recoverable amount of goodwill is the greater of its value in use and its fair value
less costs to sell. The impairment test used the value in use, where expected future cash flows
are discounted to their present value using a discount rate.
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 present value method of expected cash flows, which
are based on the future financial plans of cash-generating units (value in use method). 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 Instalacija d.o.o., the 5-year financial plans of the cash-generating unit, the required rate
of return of 9.03 percent before taxes (2021: 8.29 percent) and the annual growth rate of the
remaining free cash flows (the residual value) of 1.97 percent (2021: 1.97 percent) were used
in testing goodwill for impairment.
For Petrol d.o.o., the 5-year financial plans of the cash-generating unit, the required rate of
return of 12.5 percent after taxes (2021: 8.5 percent) and the annual growth rate of the
remaining free cash flows (the residual value) of -1 percent (2021: 2 percent) were used in
testing goodwill for impairment. The testing of Petrol d.o.o.’s goodwill comprises goodwill
arising from the upstream merger of Crodux derivati dva d.o.o., Euro-Petrol d.o.o., Petrol-
Jadranplin d.o.o., Crodux Plin d.o.o. and Petrol-Butan d.o.o.
For Atet d.o.o., the 5-year financial plans of the cash-generating unit, the required rate of return
of 7.8 percent after taxes (2021: 7.4 percent) and the annual growth rate of the remaining free
cash flows (the residual value) of 2 percent (2021: 2 percent) were used in testing goodwill for
impairment.
For MBILLS d.o.o., the 5-year financial plans of the cash-generating unit, the required rate of
return of 22,1 percent after taxes (2021: 24.01 percent) and the annual growth rate of the
remaining free cash flows (the residual value) of 2 percent (2021: 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., the 20-year financial plans of the cash-generating unit and
the required rate of return of 10.9 percent after taxes (2021: 8.7 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 Vjetroelektrana Ljubd.o.o., the 24-year financial plans of the cash-generating unit and
the average required rate of return of 10.9 percent after taxes (2021: 8.5 percent) were used



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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., 4-year financial plans of the cash-generating unit, the required rate of
return of 9 percent after taxes (2021: 8.4 percent) and the annual growth rate of the remaining
free cash flows (the residual value) of 2 percent (2021: 2 percent) were used in testing goodwill
for impairment.
For Zagorski metalac d.o.o., the 7-year financial plans of the cash-generating unit, the required
rate of return of 6.59 percent after taxes (2021: 8 percent) and the annual growth rate of the
remaining free cash flows (the residual value) of 2 percent (2021: 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:
In 2021
Key assumptions
Change in key assumptions
Effect of
change in the
discount rate
on the
recoverable
amount
Effect of
change in
the long-term
growth rate
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
assumptions
change
(in EUR thousand)
Discount rate
(WACC)
Long-term
growth rate
(g)
Discount
rate
(WACC)
Long-term
growth rate
(g)
Adria-Plin d.o.o.
+ 0.5
- 0.5
(5)
(4)
(8)
(212)
8.41%
2%
- 0.5
+ 0.5
5
4
11
(193)
Atet d.o.o.
+ 0.5
- 0.5
(803)
(660)
(1,350)
-
7.40%
2%
- 0.5
+ 0.5
968
796
1,963
-
+ 0.5
- 0.5
(13,045)
(10,421)
(22,636)
-
Crodux derivati dva d.o.o.
10.00%
;
12.00%
-0.90%
- 0.5
+ 0.5
14,097
11,269
26,415
-
Euro - Petrol d.o.o.
+ 0.5
- 0.5
(27,781)
25,870
(46,676)
-
8.50%
2%
- 0.5
+ 0.5
32,420
(22,174)
63,518
-
Instalacija d.o.o., Koper
+ 0.5
- 0.5
(13,167)
(10,469)
(22,051)
-
8.29%
2%
- 0.5
+0.5
15,422
12,268
30,253
-
MBills d.o.o.
+ 0.5
- 0.5
(166)
(125)
(278)
-
24.01%
;
13.03%
2%
- 0.5
+ 0.5
182
136
335
-
Vjetroelektrane Glunča
d.o.o.
+ 0.5
-
(544)
-
(544)
-
8.70
-
- 0.5
-
570
-
570
-
Vjetroelektrana Ljubač
d.o.o.
+ 0.5
-
(1,413)
-
(1,413)
-
8.70
-
- 0.5
-
1,507
-
1,507
-
In 2022
Key assumptions
Change in key assumptions
Effect of
change in the
discount rate
on the
recoverable
amount
Effect of
change in
the long-term
growth rate
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
assumptions
change
(in EUR thousand)
Discount rate
(WACC)
Long-term
growth rate
(g)
Discount
rate
(WACC)
Long-term
growth rate (g)
+ 0.5
- 0.5
(15)
(16)
(29)
-
Adria-Plin d.o.o.
9.00%
2%
- 0.5
+ 0.5
17
18
38
-
+ 0.5
- 0.5
(551)
(482)
(1,034)
-
7.80%
2%
- 0.5
+ 0.5
651
582
1,233
-
Petrol d.o.o. (Crodux
derivati dva d.o.o.
+ 0.5
- 0.5
(34,471)
(23,785)
(56,098)
-
and Euro-Petrol d.o.o.)
12.50%
-1%
- 0.5
+ 0.5
41,414
28,593
73,791
-
Instalacija d.o.o.,
Koper
+ 0.5
- 0.5
(10,630)
(9,650)
(19,037)
-
9.03%
2%
- 0.5
+0.5
14,448
11,235
28,192
-
MBills d.o.o.
+ 0.5
- 0.5
(225)
(133)
(346)
(169)
22.10%
;
13.90%
2%
- 0.5
+ 0.5
246
145
407
-
Vjetroelektrane
Glunča d.o.o.
+ 0.5
- 0.5
(1,181)
-
(1,181)
-
10.90
-
- 0.5
+ 0.5
1,245
-
1,245
-
Vjetroelektrana Ljubač
d.o.o.
+ 0.5
-
(1,569)
-
(1,569)
-
10.90
-
- 0.5
-
1,662
-
1,662
-



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Intangible assets of Petrol d.d., Ljubljana
(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
Accumulated 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
(in EUR)
Material and
other rights
Right to use
concession
infrastructure
Goodwill
Ongoing
investments
Long-term
deferred
costs
Total
Cost
As at 1 January 2022
41,934,032
112,044,827
85,266,022
1,879,712
276,793
241,401,386
New acquisitions
-
1,406
-
5,286,334
1,011,058
6,298,798
Disposals
(341,270)
(213,646)
-
(2,400)
(115,183)
(672,499)
Transfers between PPE and investment property
(12,656)
543,746
-
-
-
531,090
Transfer from ongoing investments
2,699,324
766,933
-
(3,466,257)
-
-
As at 31 December 2022
44,279,430
113,143,266
85,266,022
3,697,389
1,172,668
247,558,775
Accumulated amortisation
As at 1 January 2022
(27,058,108)
(58,818,460)
-
-
-
(85,876,568)
Amortisation
(5,547,972)
(4,201,187)
-
-
-
(9,749,159)
Disposals
177,739
205,497
-
-
-
383,236
Transfers between PPE and investment property
8,669
(352,482)
-
-
-
(343,813)
As at 31 December 2022
(32,419,672)
(63,166,632)
-
-
-
(95,586,304)
Net carrying amount as at 1 January 2022
14,875,924
53,226,367
85,266,022
1,879,712
276,793
155,524,818
Net carrying amount as at 31 December 2022
11,859,758
49,976,634
85,266,022
3,697,389
1,172,668
151,972,471
All the intangible assets presented herein are owned by the Company and are unpledged.
17.4 percent of all the intangible assets in use on 31 December 2022 were fully depreciated
(compared to 13.5 percent as at 31 December 2021).
Intangible fixed assets as at 31 December 2022 were tested for impairment And it was
determined that there is no need for the impairment of intangible fixed assets, the same as in
2021.
Goodwill
As at 31 December 2022, the Company disclosed goodwill arising from the upstream merger
of Instalacija d.o.o.
In 2013, the upstream merger of Instalacija d.o.o. resulted in goodwill in the amount of EUR
85,266,022.
In 2022, 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 the goodwill disclosure relating to the
Group.



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6.16 Right-of-use assets
Right-of-use assets 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
43,684,979
31,791,552
5,965,717
81,442,248
New acquisitions as a result of control obtained
36,259,696
30,607,283
305,752
67,172,731
New acquisitions
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
(68,253)
5,203
924
(62,126)
As at 31 December 2021
77,501,535
64,707,813
6,577,767
148,787,115
Accumulated depreciation
As at 1 January 2021
(6,197,450)
(9,367,210)
(3,475,982)
(19,040,642)
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
(7,424)
(25,717)
(901)
(34,042)
As at 31 December 2021
(9,472,503)
(12,534,287)
(4,688,736)
(26,695,526)
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
68,029,032
52,173,526
1,889,031
122,091,589
*The Group finalised the allocation of the purchase price of Crodux derivati dva d.o.o. in 2022. The changes are
explained in Point 2.f.
In the prior year, value adjustments for new acquisitions due to control of the Company totalling
EUR 13,658,542 were recognised but are now included in the reduction of the cost of new
acquisitions due to control of the Company.
(in EUR)
Right to use
land
Right to use
buildings
Right to use
equipment
Total
Cost
As at 1 January 2022
77,501,535
64,707,813
6,577,767
148,787,115
New acquisitions
23,256,763
53,430,756
19,888,157
96,575,676
Disposals
(23,707,396)
(55,348,762)
(486,070)
(79,542,228)
Transfers between assets categories
2,568,882
(2,568,882)
-
-
Foreign exchange differences
(92,522)
(108,261)
(5,952)
(206,735)
As at 31 December 2022
79,527,262
60,112,664
25,973,902
165,613,828
Accumulated depreciation
As at 1 January 2022
(9,472,503)
(12,534,287)
(4,688,736)
(26,695,526)
Depreciation
(7,069,549)
(11,587,220)
(2,603,232)
(21,260,001)
Disposals
6,525,251
7,153,465
256,603
13,935,319
Transfers between assets categories
(790,946)
790,946
-
-
Foreign exchange differences
6,033
19,592
1,024
26,649
As at 31 December 2022
(10,801,714)
(16,157,504)
(7,034,341)
(33,993,559)
Net carrying amount as at 1 January 2022
68,029,032
52,173,526
1,889,031
122,091,589
Net carrying amount as at 31 December 2022
68,725,548
43,955,160
18,939,561
131,620,269



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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
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/Impairments
-
-
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)
Right to use
land
Right to use
buildings
Right to use
equipment
Total
Cost
As at 1 January 2022
32,218,878
1,878,132
5,397,463
39,494,473
New acquisitions
1,259,241
1,329,656
3,148,387
5,737,284
Disposals
-
(91,031)
(141,097)
(232,128)
As at 31 December 2022
33,478,119
3,116,757
8,404,753
44,999,629
Accumulated depreciation
As at 1 January 2022
(6,409,800)
(966,818)
(4,243,032)
(11,619,650)
Depreciation
(2,262,808)
(629,928)
(1,454,766)
(4,347,502)
Disposals
-
91,031
114,184
205,215
As at 31 December 2022
(8,672,608)
(1,505,715)
(5,583,614)
(15,761,937)
Net carrying amount as at 1 January 2022
25,809,078
911,314
1,154,431
27,874,823
Net carrying amount as at 31 December 2022
24,805,511
1,611,042
2,821,139
29,237,692
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.



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6.17 Property, plant and equipment
Property, plant and equipment of the Petrol Group
(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
108,318,946
37,571,004
2,293,618
12,547,707
2,331,159
163,062,434
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)
Transfers between assets
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)
-
Transfers between investment
property
(3,463)
2,100,779
-
-
-
2,097,316
Foreign exchange differences
(135,907)
409,356
528
240,484
98,617
613,078
As at 31 December 2021
326,139,185
796,182,254
7,259,275
367,201,042
60,437,164
1,557,218,920
Accumulated depreciation
As at 1 January 2021
-
(448,659,582)
(2,403,660)
(207,615,395)
-
(658,678,637)
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
Transfers between assets
categories
-
1,984
(2,408)
424
-
-
Transfers between investment
property
-
(2,268,673)
-
-
-
(2,268,673)
Foreign exchange differences
-
(248,059)
(1,199)
(169,264)
-
(418,522)
As at 31 December 2021
-
(474,840,389)
(2,975,105)
(221,989,378)
-
(699,804,872)
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
326,139,185
321,341,865
4,284,170
145,211,664
60,437,164
857,414,048
*The Group finalised the allocation of the purchase price of Crodux derivati dva d.o.o. in 2022. The changes are
explained in Point 2.f.
In the prior year, value adjustments for new acquisitions due to control of the Company totalling
EUR 108,443,099 were recognised, but are now included in the reduction of the cost of new
acquisitions due to control of the Company.
(in EUR)
Land
Buildings
Machinery
Equipment
Ongoing
investments
Total
Cost
As at 1 January 2022
326,139,185
796,182,254
7,259,275
367,201,042
60,437,164
1,557,218,920
New acquisitions
-
218,339
70,076
5,694,408
58,462,957
64,445,780
Disposals
(417,828)
(1,888,551)
(10,539)
(10,588,891)
(34,401)
(12,940,210)
Transfers between intangible
assets
106,699
10,227,604
(2,617,822)
(2,159,341)
146,109
5,703,249
Transfer to contract assets
-
-
-
(7,493,238)
-
(7,493,238)
Transfer from ongoing
investments
746,662
21,390,024
66,729
50,278,031
(72,481,446)
-
Transfers between investment
property
-
-
-
-
(29,461)
(29,461)
Foreign exchange differences
(341,186)
(293,352)
(1,035)
(179,477)
(61,460)
(876,510)
As at 31 December 2022
326,233,532
825,836,318
4,766,684
402,752,534
46,439,462
1,606,028,530
Accumulated depreciation
As at 1 January 2022
-
(474,840,389)
(2,975,105)
(221,989,378)
-
(699,804,872)
Depreciation
-
(28,820,561)
(303,483)
(31,240,996)
-
(60,365,040)
Disposals
-
1,607,439
10,539
7,296,612
-
8,914,590
Transfers between intangible
assets
-
(5,188,946)
420,951
3,488,442
-
(1,279,553)
Transfer to contract assets
-
-
-
824,274
-
824,274
Foreign exchange differences
-
129,594
742
104,256
-
234,592
As at 31 December 2022
-
(507,112,863)
(2,846,356)
(241,516,790)
-
(751,476,009)
Net carrying amount as at 1
January 2022
326,139,185
321,341,865
4,284,170
145,211,664
60,437,164
857,414,048
Net carrying amount as at 31
December 2022
326,233,532
318,723,455
1,920,328
161,235,744
46,439,462
854,552,521
33.2 percent of all items of property, plant and equipment in use on 31 December 2022 were
fully depreciated.



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Items of property, plant and equipment pledged as security
All items of property, plant and equipment of the Group are unpledged.
The Group’s impairment review process has determined that no indicators of impairment exist
for property, plant and equipment as at 31 December 2022. And it was determined that there
is no need for the impairment of property, plant and equipment.
In 2021, 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., 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. Therefore, the Group impaired the assets of the
cash-generating units by EUR 6,726,152.
Property, plant and equipment of Petrol d.d., Ljubljana
(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 assets
categories
-
943
926,878
(16,253)
911,568
Transfer from ongoing
investments
1,324,989
12,089,495
10,707,788
(24,122,272)
-
Transfers between 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 assets
categories
-
(424)
424
-
-
Transfers between investment
property
-
(222,003)
-
-
(222,003)
As at 31 December 2021
-
(415,142,838)
(179,706,981)
-
(594,849,819)
Net carrying amount as at 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



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(in EUR)
Land
Buildings
Equipment
Ongoing
investments
Total
Cost
As at 1 January 2022
102,794,116
577,375,427
266,626,550
14,315,883
961,111,976
New acquisitions
-
-
-
32,614,695
32,614,695
Disposals
(401,114)
(1,504,318)
(5,076,701)
(34,401)
(7,016,534)
Transfers between intangible
assets
193,874
(237,878)
583,674
-
539,670
Transfer from ongoing investments
126
8,983,729
14,474,671
(23,458,526)
-
Transfers between investment
property
-
-
-
(29,461)
(29,461)
As at 31 December 2022
102,587,002
584,616,960
276,608,194
23,408,190
987,220,346
Accumulated depreciation
As at 1 January 2022
-
(415,142,838)
(179,706,981)
-
(594,849,819)
Depreciation
-
(15,658,372)
(16,084,332)
-
(31,742,704)
Disposals
-
1,323,457
4,911,183
-
6,234,640
Transfers between intangible
assets
-
(33,334)
(518,479)
-
(551,813)
As at 31 December 2022
-
(429,511,087)
(191,398,609)
-
(620,909,696)
Net carrying amount as at 1
January 2022
102,794,116
162,232,589
86,919,569
14,315,883
366,262,157
Net carrying amount as at 31
December 2022
102,587,002
155,105,873
85,209,585
23,408,190
366,310,650
43.8 percent of all items of property, plant and equipment in use on 31 December 2022 were
fully depreciated.
Items of property, plant and equipment pledged as security
All items of property, plant and equipment of the Company are unpledged.
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 2022. The Company’s impairment review process has determined
that no indicators of impairment exist for property, plant and equipment as at 31 December
2022. In addition, fixed assets were also valued in the context of goodwill and subsidiary
valuations. And it was determined that there is no need for the impairment of property, plant
and equipment.
In 2021, when testing asset impairment indicators, the Company determined the need to impair
the cash-generating unit of the biogas plants, certain land, buildings and certain investments
in progress in the amount of EUR 1,320,938.



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6.18 Investment property
Investment property comprises buildings (storage facilities, car washes, bars) being leased out
by the Group/Company.
The Petrol
Group
Petrol d.d.
(in EUR)
Investment
property
Investment
property
Cost
As at 1 January 2021
41,134,662
28,678,072
New acquisitions as a result of control obtained
120,243
-
Impairments
(2,616,094)
(516,016)
Transfers between intangible assets
16,297
16,297
Transfers between property, plant and equipment
(2,097,316)
(353,455)
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
Transfers between property, plant and equipment
2,268,673
222,003
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
The Petrol
Group
Petrol d.d.
(in EUR)
Investment
property
Investment
property
Cost
As at 1 January 2022
36,577,379
27,824,898
New acquisitions
124,378
-
Disposals
(265,870)
(21,725)
Transfers between intangible assets
(101,127)
(101,127)
Transfers between property, plant and equipment
29,461
29,461
Foreign exchange differences
(14,721)
-
As at 31 December 2022
36,349,500
27,731,507
Accumulated depreciation
As at 1 January 2022
(20,437,636)
(15,488,904)
Depreciation
(1,069,764)
(677,760)
Transfers between intangible assets
(74,007)
(74,007)
Foreign exchange differences
9,015
-
As at 31 December 2022
(21,572,392)
(16,240,671)
Net carrying amount as at 1 January 2022
16,139,743
12,335,994
Net carrying amount as at 31 December 2022
14,777,108
11,490,836



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The Petrol Group
After assessing the intended use of the property and the long-term goals pursued as at 31
December 2022, 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 29,461
(2021: EUR 435,177) from plant, property and equipment to investment property.
In 2022, revenue generated by the Group from investment property totalled EUR 3,262,056
(2021: EUR 3,664,417). The Group estimates that the fair value of investment property as at
31 December 2022 amounts to EUR 27,936,214 (EUR 28,624,904 as at 31 December 2021).
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 8.5 to 11.95
percent after taxes (2021: from 8.95 to 11.95 percent) and the long-term growth rate of lease
payments from 0.05 to 1 percent (2021: from 0.05 to 1 percent) were used.
In 2022, the Group’s impairment review process has determined that no indicators of
impairment exist for investment property as at 31 December 2022. It was determined that there
is no need for the impairment of investment property.
In 2021, 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.
Petrol d.d., Ljubljana
In 2022, the revenue generated by the Company from investment property totalled EUR
2,576,791 (2021: EUR 3,060,974). The Company estimates that the fair value of investment
property as at 31 December 2022 amounts to EUR 22,241,655 (31 December 2021: EUR
23,184,416). 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 (2021: 0.05 percent) and a required rate of return
of 8.5 percent (2021: 8.95 percent) are assumed.
In 2022, the Company’s impairment review process has determined that no indicators of
impairment exist for investment property as at 31 December 2022. It was determined that there
is no need for the impairment of investment property.
In 2021, 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.

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.



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Petrol d.d., Ljubljana
Information about direct subsidiaries as at 31 December 2022
The directly owned subsidiaries of Petrol d.d., Ljubljana are as follows:
Name of subsidiary
Address of subsidiary
Ownership
interest
Equity as at
31 December
2022 (in EUR)
Net profit or
loss for 2022
(in EUR)
Slovenia
IGES d.o.o.
Dunajska cesta 50, Ljubljana, Slovenia
100%
15,845,841
16,282
Petrol Skladiščenje d.o.o.
Zaloška 259, Ljubljana Polje, Slovenia
100%
815,803
(154)
Petrol GEO d.o.o.
Mlinska ulica 5d, Lendava, Slovenia
100%
4,001,327
1,813,899
Ekoen d.o.o.
Luče 117a, Luče, Slovenia
100%
728,431
(10,370)
Ekoen S d.o.o.
Ljubljanska cesta 35, Domžale,
Slovenia
100%
10,502
(4,890)
MBills d.o.o.
Tržaška cesta 118, Ljubljana, Slovenia
100%
3,423,040
(1,094,420)
Geoplin d.o.o. Ljubljana
Cesta Ljubljanske brigade 11,
Ljubljana, Slovenia
74.34%
112,325,789
(28,619,727)
Atet d.o.o.
1
Devova ulica 6a, Ljubljana, Slovenia
72.96%
2,579,764
410,029
E 3, d.o.o.
Prvomajska ulica 21, Nova Gorica,
Slovenia
100%
12,240,655
(2,345,898)
Croatia
Petrol d.o.o.
Savska Opatovina 36, Zagreb, Croatia
100%
242,932,611
(2,846,379)
Vjetroelektrane Glunča
d.o.o.
Savska Opatovina 36, Zagreb, Croatia
100%
12,722,925
913,813
Vjetroelektrana Ljub
d.o.o.
Krapanjska cesta 8, Šibenik, Croatia
100%
8,179,063
805,584
Zagorski metalac d.o.o.
2
Ulica Josipa Broza Tita 2F, Zabok,
Croatia
75%
8,778,575
(263,970)
Serbia
Petrol d.o.o. Beograd
Omladinskih brigada 88-90, Novi
Beograd, Serbia
100%
35,377,619
3,179,777
Beogas d.o.o. Beograd
Omladinskih brigada 88-90, Novi
Beograd, Serbia
100%
22,574,022
1,126,337
Petrol LPG d.o.o.
Ulica Patrijarha Dimitrija 12v, Beograd,
Serbia
100%
12,388,930
1,381,292
STH Energy d.o.o. Kraljevo
Miloša Velikog 52-2/14, Kraljevo,
Serbia
80%
581,400
65,210
Montenegro
Petrol Crna Gora MNE
d.o.o.
Ulica Slobode br. 2, Podgorica,
Montenegro
100%
23,206,150
1,666,046
Bosnia and Herzegovina
Petrol BH Oil Company
d.o.o. Sarajevo
Tešanjska 24a, Sarajevo, Bosnia and
Herzegovina
100%
72,931,492
3,831,613
Petrol Hidroenergija d.o.o.
Teslić
Branka Radičevića 1, Teslić, Bosnia
and Herzegovina
80%
7,172,943
370,823
Petrol Power d.o.o.
Sarajevo
Tešanjska 24a, Sarajevo, Bosnia and
Herzegovina
99.75%
(1,982,136)
(36,731)
Other countries
Petrol Trade
Handelsgesellschaft m.b.H.
Elisabethstrasse 10/4, Dunaj, Austria
100%
2,456,304
895,221
Petrol-Energetika DOOEL
Skopje
Ul. Sv. Kiril i Metodij 20, Skopje,
Macedonia
100%
118,136
7,146
Petrol Bucharest ROM
S.R.L.
B-dul Tudor Vladimirescu 22, Sector 5,
Bucharest, Romania
100%
(69,001)
15,910
Petrol-OTI-Terminal L.L.C.
Industrijska zona b.b., Kosovo Polje,
Kosovo
100%
8,546,888
(14,593)
1
Petrol d.d., Ljubljana has 76 percent of the 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 93.59 percent interest in Zagorski metalac d.o.o.



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Information about indirect subsidiaries as at 31 December 2022
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.
Name of subsidiary
Address of subsidiary
Ownership
interest
Equity as at
31 December
2022 (in EUR)
Net profit
or loss for
2022 (in
EUR)
The Petrol LPG Group
Tigar Petrol d.o.o. Beograd
Omladinskih brigada 88-90, Novi
Beograd, Serbia
100%
(353,623)
(28,445)
Petrol LPG HIB d.o.o.
Preduzetnička zona bb, Šamac,
Bosnia and Herzegovina
100%
(281,680)
(203,821)
The Petrol Beograd Group
Petrol Lumennis PB JO d.o.o.
Beograd
Ulica Patrijarha Dimitrija 12v,
Beograd, Serbia
100%
2,144
988
Petrol Lumennis VS d.o.o. Beograd
Ulica Patrijarha Dimitrija 12v,
Beograd, Serbia
100%
2,100
983
Petrol Lumennis ZA JO d.o.o.
Beograd
Omladinskih brigada 8890, Novi
Beograd, Serbia
100%
2,697
2,008
Petrol Lumennis ŠI JO d.o.o.
Beograd
Omladinskih brigada 88‒90, Novi
Beograd, Serbia
100%
1,121
1,054
Petrol KU 2021 d.o.o. Beograd
Omladinskih brigada 88‒90, Novi
Beograd, Serbia
100%
39,545
39,517
Petrol Lumennis KI JO d.o.o.
Beograd
Omladinskih brigada 88‒90, Novi
Beograd, Serbia
100%
355
354
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.
Savska Opatovina 36,
Zagreb, Croatia
100%
95,096
23,859
Adria-Plin d.o.o.
Ulica Stinice 15, Kastel Gomilica,
Croatia
75%
32,501
(36,115)
The Geoplin Group
Geocom d.o.o.
Cesta Ljubljanske brigade 11,
Ljubljana, Slovenia
100%
437,090
-
Geoplin d.o.o.
Radnička cesta 177,
Zagreb, Croatia
100%
1,702,940
268,530
Geoplin d.o.o. Beograd
Zelenogorska ulica broj 1g, 11070
Novi Beograd, Serbia
100%
36,611
-
1
The company is in bankruptcy proceedings.



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Balance of investments in subsidiaries
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
Petrol d.o.o.
327,833,986
136,133,985
Geoplin d.o.o. Ljubljana
56,964,237
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
14,950,000
Beogas d.o.o. Beograd
12,774,000
12,774,000
Vjetroelektrarna Ljubač d.o.o.
9,056,761
9,056,761
Zagorski metalac d.o.o.
7,600,316
7,600,316
Vjetroelektrane Glunča d.o.o.
6,523,622
6,523,622
MBills d.o.o.
5,955,122
5,955,122
Petrol Hidroenergija d.o.o. Teslić
5,000,409
5,000,409
Petrol LPG d.o.o.
4,770,601
4,770,601
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
Crodux derivati dva d.o.o.
-
191,700,000
Petrol Power d.o.o. Sarajevo
-
-
Total investments in subsidiaries
554,032,932
553,970,331
Changes in investments in subsidiaries
Petrol d.d.
(in EUR)
2022
2021
As at 1 January
553,970,331
351,013,627
New acquisitions
62,600
214,150,000
Impairment
-
(11,193,296)
As at 31 December
554,032,932
553,970,331
The Group acquired an additional 0.04 percent interest in Geoplin d.o.o., becoming a 74.34
percent owner of the company.
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.



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The Group/Company received a refund of the purchase consideration of EUR 3,244,000 in
2022 as a result of the final settlement of the purchase consideration, in accordance with the
purchase agreement, and recognised the amount in finance income.
In 2021, the Group's expenses from investments in subsidiaries of EUR 185,966,729 consisted
of payments to Crodux derivati dva d.o.o. of EUR 181,700,000 and E 3, d.o.o. of EUR
14,950,000 less cash acquired through the acquisition of Crodux derivati dva d.o.o. of EUR
9,891,052 and E 3, d.o.o. of EUR 792,219.
In 2021, the Company's expenses on investments in subsidiaries of EUR 204,150,000
consisted of payments to Crodux derivati dva d.o.o. of EUR 181,700,000 and to E 3, d.o.o. of
EUR 14,950,000 as well as the recapitalisation of Vjetroelektrana Ljub d.o.o. of EUR
7,500,000.
In accordance with the IAS 36, the Company tested investment impairment indicators and
determined that they do not exist for investments in subsidiaries as at 31 December 2022. It
was determined that there is no need for the impairment of investments in subsidiaries.
In 2021, when testing impairment indicators of investments in subsidiaries, the Company
impaired them by EUR 11,193,296.
An impairment of an investment in a subsidiary is recognised when its carrying amount
exceeds its recoverable amount. The recoverable amount of an investment in a subsidiary is
the higher of its value in use and its fair value less costs to sell. The impairment test used the
value in use, where expected future cash flows are discounted to their present value using a
discount rate.
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 investments is presented below:
In 2021
Key assumptions
Change in key
assumptions
Effect of
change in the
discount rate
on the
recoverable
amount
Effect of
change in the
long-term
growth rate
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
assumptions
change
(in EUR thousand)
Discount rate
(WACC)
Long-term
growth rate
(g)
Discount
rate
(WACC)
Long-term
growth rate
(g)
Petrol d.o.o.
+ 0.5
- 0.5
(27,282)
(21,776)
(45,837)
-
8.50%
2%
- 0.5
+ 0.5
31,836
25,404
62,374
-
Crodux derivati dva d.o.o.
+ 0.5
- 0.5
(10,420)
(13,045)
(22,636)
-
10.00%
;
12.00%
-0.90%
- 0.5
+ 0.5
11,269
14,097
26,415
-
+ 0.5
- 0.5
(6,137)
(3,726)
(9,278)
(5,855)
Petrol d.o.o. Beograd
9.30%
2.20%
- 0.5
+ 0.5
7,131
4,286
12,315
-
+ 0.5
- 0.5
(1,255)
(548)
(1,734)
(1,297)
Petrol Crna Gora MNE d.o.o.
11.50%
1.70%
- 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.
8.50%
1.90%
- 0.5
+ 0.5
1,422
(4,599)
2,976
395
-
+ 0.5
-
(1,413)
-
(1,413)
-
Vjetroelektrane Ljubač d.o.o.
8.70%
- 0.5
-
1,507
-
1,507
-
+ 0.5
- 0.5
(292)
(335)
(582)
(898)
Zagorski metalac d.o.o.
6.80%
;
8.00%
2%
- 0.5
+ 0.5
345
397
817
-
Vjetroelektrana Glunča
d.o.o.
-
+ 0.5
-
(544)
-
(544)
-
8.70%
- 0.5
-
570
-
570
-
MBills d.o.o.
+ 0.5
- 0.5
(165)
(124)
(278)
(278)
24.04%
;
14.03%
2%
- 0.5
+0.5
183
137
335
-
Petrol Hidroenergija d.o.o.
Teslić
-
+ 0.5
-
(182)
-
(182)
-
9.10%
- 0.5
-
194
-
194
-
Petrol LPG d.o.o.
+ 0.5
- 0.5
(534)
(397)
(888)
(791)
11.20%
;
11.70%
2%
- 0.5
+0.5
593
440
1,091
-
Atet d.o.o.
+ 0.5
- 0.5
(588)
(483)
(988)
(185)
7.40%
2%
- 0.5
+0.5
708
582
1,437
-



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In 2022
Key assumptions
Change in key
assumptions
Effect of
change in the
discount rate
on the
recoverable
amount
Effect of
change in the
long-term
growth rate
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
assumptions
change
(in EUR thousand)
Discount rate
(WACC)
Long-term
growth rate
(g)
Discount
rate
(WACC)
Long-term
growth rate
(g)
Petrol d.o.o.
+ 0.5
- 0.5
(34,471)
(23,785)
(56,098)
-
12.50%
-1%
- 0.5
+ 0.5
41,414
28,593
73,791
-
+ 0.5
- 0.5
(4,957)
(1,962)
(6,677)
(5,855)
Petrol d.o.o. Beograd
11.60%
1%
- 0.5
+ 0.5
5,498
2,147
7,984
-
+ 0.5
- 0.5
(1,416)
(1,036)
(2,343)
-
Petrol Crna Gora MNE d.o.o.
11.80%
2%
- 0.5
+ 0.5
1,761
1,115
3,097
-
+ 0.5
- 0.5
(693)
(171)
(844)
-
E 3, d.o.o.
9.80%
0%
- 0.5
+ 0.5
739
192
959
-
+ 0.5
-
(1,569)
-
(1,569)
-
Vjetroelektrane Ljubač d.o.o.
10.90%
-
- 0.5
-
1,662
-
1,662
-
+ 0.5
- 0.5
(530)
(431)
(876)
-
Zagorski metalac d.o.o.
6.59%
2%
- 0.5
+ 0.5
661
535
1,360
-
Vjetroelektrana Glunča
d.o.o.
+ 0.5
-
(1,181)
-
(1,181)
-
10.90%
-
- 0.5
-
1,245
-
1,245
-
MBills d.o.o.
+ 0.5
- 0.5
(225)
(133)
(346)
(169)
22.10%
;
13.90%
2%
- 0.5
+0.5
246
145
407
-
Atet d.o.o.
+ 0.5
- 0.5
(551)
(483)
(1,034)
(530)
7.80%
2%
- 0.5
+0.5
651
582
1,233
-
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.
The second step of the exchange is subject to suspensive conditions that cannot be met by
either party to the contract, and therefore we do not consider that the conditions for recognising
the option in the Group's/Company's financial statements have been met.
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 29,367,274.
Data on non-controlling interests
The financial data for each subsidiary with a non-controlling interest are summarised below.
Data for Petrol Power d.o.o., Adria-Plin d.o.o., STH Energy d.o.o. Kraljevo are shown among
others. Disclosures are made before the elimination of intercompany relationships.



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2021
(in EUR)
The Geoplin
Group
Zagorski
metalac d.o.o
Petrol
Hidroenergija
d.o.o. Teslić
Others
Total
Revenue
761,070,984
8,348,470
1,042,013
2,590,606
773,052,073
Net profit for the year
21,369,435
(2,844,025)
574,770
(168,170)
18,932,010
Net profit for the year attributable to:
Non-controlling interest
5,496,219
(182,871)
114,954
(26,516)
5,401,786
Total other comprehensive income after tax
(72,042)
41,823
-
833
(29,386)
Total comprehensive income for the year
21,297,393
(2,802,202)
574,770
(167,337)
18,902,624
Total comprehensive income attributable to:
Non-controlling interest
5,477,689
(180,182)
114,954
(26,328)
5,386,133
(in EUR)
The Geoplin
Group
Zagorski metalac
d.o.o.
Petrol
Hidroenergija
d.o.o. Teslić
Others
Total
Non-current (long-term) assets
36,585,535
8,185,682
5,591,483
5,559,899
55,922,599
Current assets
263,940,612
8,487,790
1,676,616
758,183
274,863,201
Non-current liabilities
(10,971,781)
(3,738,340)
-
(1,755,239)
(16,465,360)
Current liabilities
(130,863,290)
(2,237,755)
(72,715)
(8,481,329)
(141,655,089)
Net assets
158,691,076
10,697,377
7,195,384
(3,918,486)
172,665,351
Net assets attributable to:
Non-controlling interest
40,815,343
687,838
1,439,080
110,106
43,052,367
(in EUR)
The Geoplin
Group
Zagorski metalac
d.o.o.
Petrol
Hidroenergija
d.o.o. Teslić
Others
Total
Net cash from (used in) operating activities
83,136,255
1,161,948
473,604
295,156
85,066,963
Net cash from (used in) investing activities
(66,429,283)
(2,214,424)
49,112
(243,437)
(68,838,032)
Net cash from (used in) financing activities
(16,130,870)
(110,066)
(713,158)
(127,387)
(17,081,481)
Increase/(decrease) in cash and cash
equivalents
576,102
(1,162,542)
(190,442)
(75,668)
(852,550)
Dividend payments to non-controlling
interest
331,803
-
178,290
-
510,093



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2022
(in EUR)
The Geoplin
Group
Zagorski metalac
d.o.o.
Petrol
Hidroenergija
d.o.o. Teslić
Others
Total
Revenue
1,450,642,390
11,606,837
783,914
2,851,477
1,465,884,618
Net profit for the year
Net profit for the year attributable to:
Non-controlling interest
Total other comprehensive income after tax
(28,260,761)
(506,585)
371,537
130,978
(28,264,831)
Net profit for the year attributable to:
Non-controlling interest
(7,250,924)
(32,578)
74,310
3,261
(7,205,931)
Total other comprehensive income after tax
(16,623,899)
(21,686)
-
534
(16,645,051)
Total comprehensive income for the year
Total comprehensive income attributable
to:
Non-controlling interest
(44,884,660)
(528,271)
371,537
131,512
(44,909,882)
Total comprehensive income attributable to:
Non-controlling interest
(11,516,147)
(33,968)
74,307
3,364
(11,472,444)
(in EUR)
The Geoplin
Group
Zagorski metalac
d.o.o.
Petrol
Hidroenergija
d.o.o. Teslić
Others
Total
Non-current (long-term) assets
46,223,996
7,848,272
5,406,963
5,253,854
64,733,085
Current assets
296,065,447
9,273,796
1,871,673
1,415,723
308,626,639
Non-current liabilities
(304,109)
(3,578,989)
-
(1,753,625)
(5,636,723)
Current liabilities
(228,178,923)
(3,373,973)
(105,693)
(8,702,885)
(240,361,474)
Net assets
113,806,411
10,169,106
7,172,943
(3,786,933)
127,361,527
Net assets attributable to:
Non-controlling interest
29,199,537
653,870
1,434,592
113,475
31,401,474
(in EUR)
The Geoplin
Group
Zagorski metalac
d.o.o.
Petrol
Hidroenergija
d.o.o. Teslić
Others
Total
Net cash from (used in) operating activities
(42,826,070)
0)
180,977
479,513
552,678
(41,612,902)
Net cash from (used in) investing activities
41,804,495
(946,833)
41,911
(53,154)
40,846,419
Net cash from (used in) financing activities
72,498
(111,210)
(315,182)
(3,578)
(357,472)
Increase/(decrease) in cash and cash
equivalents
(949,077)
(877,066)
206,242
495,946
(1,123,955)
Dividend payments to non-controlling interest
-
-
78,795
-
78,795


6.20 Investments in jointly controlled entities
A more detailed overview of the Group’s structure is presented in the chapter Companies in
the Petrol Group of the business report.
Information about jointly controlled entities as at 31 December 2022
Name of jointly controlled
entity
Address of jointly controlled
entity
Business activities
Ownership and voting rights
31 December
2022
31 December
2021
Slovenia
Geoenergo d.o.o.
Mlinska ulica 5, Lendava,
Slovenia
Extraction of natural
gas, oil and gas
condensate
50%
50%
Soenergetika d.o.o.
Stara cesta 3, Kranj, Slovenia
Electricity, gas and
steam supply
25%
25%
Other Countries
Vjetroelektrana Dazlina
d.o.o.
Krapanjska cesta 8, Šibenik,
Croatia
Electricity production
50%
-
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.




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Balance of investments in jointly controlled entities
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Soenergetika d.o.o.
1,214,374
417,259
210,000
210,000
Geoenergo d.o.o.
40,558
287,242
-
-
Vjetroelektrana Dazlina d.o.o.
22,816
-
23,000
-
Total investments in jointly controlled entities
1,277,748
704,501
233,000
210,000
The Petrol Group
Changes in investments in jointly controlled entities
In conformity with the equity method, the Group recorded attributable profit of EUR 665,483 in
2022 (2021: EUR 300,040). From this amount, dividends on retained earnings, which stood at
EUR 115,217 (2021: EUR 135,495).
In 2022, the Group reacquired a 50 percent interest in the jointly controlled entity
Vjetroelektrana Dazlina d.o.o., which it sold in 2021.
The testing of investment impairment indicators applicable to investments in jointly controlled
entities identified no need for impairment in 2022 and 2021.
Significant amounts from the financial statements of jointly controlled entities
2021
(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)
2022
2021
As at 1 January
704,501
562,016
Attributed profit/loss
665,483
300,040
Dividends received
(115,217)
(135,495)
New acquisitions
23,000
-
Disposals
-
(22,060)
Foreign exchange differences
(19)
-
As at 31 December
1,277,748
704,501



The Petrol Group

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2022
(in EUR)
Assets
Liabilities
(debt)
Revenue
Net profit
or loss
Net profit or
loss
attributable
to the Petrol
Group
Soenergetika d.o.o.
5,564,582
707,087
7,421,629
3,727,173
931,793
Geoenergo d.o.o.
3,107,184
2,928,991
5,863,181
(299,384)
(149,692)
Vjetroelektrana Dazlina d.o.o.
317,212
319,028
517
(332)
(166)
Petrol d.d., Ljubljana
Changes in investments in jointly controlled entities
(in EUR)
2022
2021
As at 1 January
210,000
233,000
New acquisitions
23,000
-
Disposals
-
(23,000)
As at 31 December
233,000
210,000
The increase in investment in 2022 and the decrease in 2021 relate to Vjetroelektrana Dazlina
d.o.o.
Options contracts
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.



Petrol d.d.

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6.21 Investments in associates
A more detailed overview of the Group’s structure is presented in the chapter Companies in
the Petrol Group of the business report.
Information about associates as at 31 December 2022
Name of associate
Address of associate
Business activities
Ownership and voting rights
31 December
2022
31 December
2021
Slovenia
Plinhold d.o.o.
Mala ulica 5, Ljubljana,
Slovenia
Management of gas
infrastructure
30%
30%
Aquasystems d.o.o.
Dupleška cesta 330,
Maribor, Slovenia
Construction and operation
of industrial and municipal
water treatment plants
26%
26%
Knešca d.o.o.
Kneža 78, Most na Soči,
Slovenia
Electricity production
47.27%
-
Balance of investments in associates
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Plinhold d.o.o.
54,737,222
53,090,764
26,273,425
26,273,425
Aquasystems d.o.o.
1,309,691
1,211,955
337,052
337,052
Knešca d.o.o.
921,364
866,907
-
-
Total investments in associates
56,968,277
55,169,626
26,610,477
26,610,477
The Petrol Group
Changes in investments in associates
The Petrol Group
(in EUR)
2022
2021
As at 1 January
55,169,626
55,953,391
Attributed profit/loss
2,662,912
2,283,731
Dividends received
(864,261)
(1,403,355)
New acquisitions
-
894,000
Decrease
-
(2,558,141)
As at 31 December
56,968,277
55,169,626
In 2022, in conformity with the equity method, the Group attributed the corresponding share of
2022 profits or losses to its investments, in total EUR 2,662,912 (2021: EUR 2,283,731 EUR),
deducting from the investments the dividends received of EUR 864,261 (2021: EUR
1,403,355).




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Significant amounts from the financial statements of associates
2021
(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
2022
(in EUR)
Assets
Liabilities (debt)
Revenue
Net profit or
loss
Net profit or
loss
attributable
to the Petrol
Group
Plinhold d.o.o.
346,700,000
125,100,000
100,000,000
5,400,000
1,603,719
Aquasystems d.o.o.
7,428,079
2,419,467
8,329,270
3,456,249
898,625
Knešca d.o.o.
1,546,971
104,412
421,841
216,809
102,485
Petrol d.d., Ljubljana
Changes in investments in associates
Petrol d.d.
(in EUR)
2022
2021
As at 1 January
26,610,477
29,185,477
Decrease
-
(2,575,000)
As at 31 December
26,610,477
26,610,477
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.
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.
The second step of the exchange is subject to suspensive conditions which are not under
control of any of the parties, and therefore we do not consider that the conditions for
recognising the option in the Group's/Company's financial statements have been met.




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6.22 Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income are 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
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Current balance of financial assets at fair value
through other comprehensive income
Assets arising from interest rate swaps
34,616,805
1,420,486
30,293,507
1,078,208
Assets arising from commodity swaps
3,083,184
22,238
3,083,184
22,238
Bonds
334,077
334,077
-
-
38,034,066
1,776,801
33,376,691
1,100,446
Non-current balance of financial assets at fair
value through other comprehensive income
Shares of companies
2,048,210
2,068,908
1,871,378
1,871,378
Interests in companies
2,064,136
2,064,136
246,536
246,536
4,112,346
4,133,044
2,117,914
2,117,914
Total financial assets at fair value through other
comprehensive income
42,146,412
5,909,845
35,494,605
3,218,360
Interest rate swap assets increased due to the rise in market interest rates.
The assets arising from interest rate swaps are fully designated for hedging and the effects
are recognised in other comprehensive income and shown in the hedging reserve within equity.
Changes in financial assets at fair value through other comprehensive income
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
As at 1 January
4,133,044
4,528,987
2,117,914
2,117,914
Transfer of bonds to current assets
-
(334,077)
-
-
Disposals
(20,698)
-
-
-
Gain/loss recognised in the other comprehensive
income
-
(61,866)
-
-
As at 31 December
4,112,346
4,133,044
2,117,914
2,117,914
The Group’s/Company’s financial assets at fair value through other comprehensive income
are carried at fair value.


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6.23 Non-current loans
Balance of non-current loans
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Loans and other financial receivables
949,277
991,831
59,134,780
83,299,185
Total non-current loans
949,277
991,831
59,134,780
83,299,185
The Petrol Group
Changes in non-current loans
The Petrol Group
(in EUR)
2022
2021
As at 1 January
991,831
2,680,471
New acquisitions as a result of control obtained
-
2,656
New loans
178,621
8,231
Loans repaid
(1,355,624)
(1,602,313)
Reversal of allowances
638,125
-
Transfer from current loans
498,189
-
Transfer to current loans
-
(100,259)
Foreign exchange differences
(1,865)
3,045
As at 31 December
949,277
991,831

Petrol d.d., Ljubljana
Non-current loans of EUR 59,134,780 (31 December 2021: EUR 83,299,185) comprise non-
current loans from Group companies totalling EUR 59,087,634 (31 December 2021: EUR
83,233,789) and non-current loans from others equalling EUR 47,146 (31 December 2021:
EUR 65,396).
Non-current loans to subsidiaries are presented in the table below.
Petrol d.d.
(in EUR)
2022
2021
Non-current loans to subsidiaries
Vjetroelektrarna Ljubač d.o.o.
25,786,626
25,786,626
Vjetroelektrarne Glunča d.o.o.
13,308,291
-
Petrol d.o.o. Beograd
10,000,000
16,200,000
Petrol LPG d.o.o.
6,000,000
6,000,000
Petrol d.o.o., Zagreb
2,338,826
-
STH Energy d.o.o. Kraljevo
1,402,492
1,402,492
Ekoen d.o.o.
173,200
266,400
Ekoen S d.o.o.
78,199
97,749
Crodux derivati dva d.o.o.
-
25,980,522
Petrol Crna Gora MNE d.o.o.
-
7,500,000
Total
59,087,634
59,087,634
83,233,789


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Changes in non-current loans
Petrol d.d.
(in EUR)
2022
2021
As at 1 January
83,299,185
58,124,422
New loans
39,227,436
28,602,580
Loans repaid
(54,932,091)
(3,673,270)
Reversal of impairment
-
343,056
Transfer to current loans
(8,441,500)
(97,603)
Foreign exchange differences
(18,250)
-
As at 31 December
59,134,780
83,299,185
6.24 Non-current operating receivables
The majority of non-current operating receivables consist of the receivables of Petrol d.d.,
Ljubljana.
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Receivables from companies
1,216,844
1,216,662
1,214,651
1,214,651
Allowance for receivables from companies
(1,214,831)
(1,214,651)
(1,214,651)
(1,214,651)
Receivables from municipalities
180
180
180
180
Other receivables
7,013,563
8,226,580
7,007,360
8,218,927
Total non-current operating receivables
7,015,756
8,228,771
7,007,540
8,219,107
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 the profit of the company Geoenergo d.o.o., an allowance was made for the
entire receivable.
Other receivables of EUR 7,013,563 (2021: EUR 8,226,580) refer to the non-current portion of
receivables arising from selling solar power plants on instalment plans of EUR 7,007,360
(2021: EUR 8,218,927) and other receivables.

6.25 Inventories
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Spare parts and materials
2,827,561
9,990,768
2,502,499
2,393,989
Merchandise:
262,021,704
170,018,424
148,675,864
94,179,250
- fuel
205,210,206
109,844,027
105,874,708
64,589,822
- other petroleum products
146,102
98,160
123,081
95,334
- other merchandise
56,665,396
60,076,237
42,678,075
29,494,094
Total inventories
264,849,265
180,009,192
151,178,363
96,573,239



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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 2022, 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 6,194,071 (2021: EUR 7,205,752) taking into account the
market prices as at the date of the financial statements.
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 2022, 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 2022. In 2021, the Company did not impair its
inventories.

6.26 Current loans
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Loans granted
2,365,069
19,371,415
39,937,625
16,427,850
Allowance to the value of loans granted
(779,400)
(3,751,210)
(718,115)
(1,285,380)
Time deposits with banks (3 months to 1 year)
43,103
517,546
26,869
-
Interest receivables
73,654
293,088
6,616,330
5,424,514
Allowance for interest receivables
(23,288)
(262,147)
(4,518,947)
(4,385,935)
Total current loans
1,679,138
16,168,692
41,343,762
16,181,049
The Petrol Group
In addition to the loans of EUR 1,284,433 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 1,080,636 (EUR 17,330,743 as at 31 December 2021) granted to other
companies, mainly in connection with the payment of goods delivered.

Petrol d.d., Ljubljana
Short-term loans to companies of EUR 39,937,625 (EUR 16,427,850 as at 31 December 2021)
include the short-term portion of loans to Group companies totalling EUR 38,653,192 (EUR
14,387,178 as at 31 December 2021) and short-term loans to others equalling EUR 1,284,433
(EUR 2.040.672 as at 31 December 2021).


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Short-term loans to subsidiaries are presented below.
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
Current loans to subsidiaries
Petrol d.o.o., Beograd
16,200,000
-
E 3, d.o.o.
12,200,000
7,600,000
Atet d.o.o.
3,490,000
2,320,986
Petrol Power d.o.o. Sarajevo
3,562,233
3,562,233
Petrol Crna Gora MNE
2,500,000
-
Petrol Bucharest ROM S.R.L.
603,234
583,234
Petrol Oti Terminali d.o.o.
44,975
9,475
Ekoen d.o.o.
33,200
33,200
Ekoen S d.o.o.
19,550
19,550
Vjetroelektrarna Ljubač d.o.o.
-
258,500
Total
38,653,192
14,387,178
Short-term loans to others of EUR 1,284,433 refer to loans to companies for the payment of
goods delivered of EUR 1,198,573 (EUR 1,723,403 as at 31 December 2021) and other loans
of EUR 85,860 (EUR 317,269 as at 31 December 2021). The Company did not have loans
arising from the sale of financial instruments as at 31 December 2022. Nor did it have such
loans as at 31 December 2021.
6.27 Current operating receivables
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Trade receivables
883,095,961
692,538,011
585,600,764
409,335,386
Allowance for trade receivables
(58,471,044)
(57,763,043)
(30,333,833)
(31,098,414)
Operating receivables from state and other
institutions
5,008,957
5,450,026
-
244,934
Operating interest receivables
1,362,471
1,364,467
2,232,069
2,335,796
Allowance for interest receivables
(1,239,410)
(1,192,941)
(843,877)
(943,204)
Receivables from insurance companies (loss
events)
48,497
67,157
26,635
45,955
Other operating receivables
17,874,625
10,997,013
10,833,971
6,734,226
Allowance for other receivables
(2,484,713)
(1,326,808)
(724,840)
(824,788)
Total current operating receivables
845,195,344
650,133,882
566,790,889
385,829,891
Other operating receivables mainly represent card receivables from banks. The changes in
allowances are presented in Note 7.1.
In Slovenia, the selling prices of diesel and petrol between 15 March and 20 June 2022 were
below the purchase prices for most of the period. As a result of the State's measures on the
motor fuel market, the Group estimates damages of EUR 106.9 million in Slovenia for the
period from 15 March to 20 June 2022 (claim for damages submitted) and EUR 26.4 million
from 21 June 2022 onwards. In Croatia, the Group estimates damages of EUR 55.9 million in
2022 due to the regulation of the prices of petroleum products (claim submitted). The claims
for the reimbursement of damages arising from the regulation of the final sale are not
recognised in the financial statements of Petrol d.d., Ljubljana, as they do not qualify for
recognition as receivables or contingent assets under International Financial Reporting
Standards.



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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 2022 stood at EUR 13,319,362 (2021: EUR 3,338,893) in the Group and EUR
11,722,300 (2021: EUR 7,604,649) in the Company.
Contract assets were not impaired.

6.29 Financial assets at fair value through profit or loss
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Assets arising from commodity swaps
2,297,589
34,337,157
2,176,692
34,231,810
Assets arising from forward contracts
348,745
-
348,745
-
Assets arising from interest rate swaps
-
329,734
-
329,734
Total financial assets at fair value through profit
or loss
2,646,334
34,666,891
2,525,437
34,561,544
The Petrol Group and Petrol d.d., Ljubljana
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 2022.
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
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Prepayments and collaterals
80,538,388
61,569,731
27,457,632
34,494,898
Prepaid licences, subscriptions, specialised
literature, etc.
3,640,143
3,573,415
2,888,280
2,841,366
Prepaid insurance premiums
1,618,395
1,332,648
1,299,037
971,052
Other deferred costs
29,470,937
19,242,965
19,823,248
12,421,468
Total prepayments and other assets
115,267,863
85,718,759
51,468,197
50,728,784




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6.31 Cash and cash equivalents
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Cash in banks
87,958,378
91,918,939
43,687,289
53,148,173
Cash
12,989,715
8,293,516
7,516,072
4,419,224
Short-term deposits (up to 3 months)
14,438
14,435
-
-
Total cash and cash equivalents
100,962,531
100,226,890
51,203,361
57,567,397



6.32 Equity
Called-up capital
On 1 November 2022, Petrol d.d., Ljubljana, carried out a distribution of PETG shares (in the
ratio of 1:20) in accordance with the resolution of the 34
th
General Meeting following the entry
into force of the resolution on the amendment of the Articles of Association, through the entry
of the amendment of the Articles of Association in the court register, the corporate exchange
act and the prescribed procedures in the Central Register of Securities at the KDD d.o.o. and
the Ljubljana Stock Exchange.
The 34
th
General Meeting of Petrol d.d., Ljubljana, held on 21 April 2022, on the proposal of
the Management Board and the Supervisory Board of Petrol d.d., Ljubljana, adopted a
resolution on the distribution of PETG shares. The General Meeting adopted a split ratio of
1:20, which means that the total number of PETG shares increased by a factor of 20 from
2,086,301 to 41,726,020 as a result of the amendment of the Articles of Association and the
distribution. The share capital of Petrol d.d., Ljubljana, amounting to EUR 52,240,977.04
remained unchanged following the distribution of PETG shares.
Thus the Company’s share capital totals EUR 52,240,977 and is divided into 41,726,020
ordinary shares with a nominal value of EUR 1.25. All the shares have been paid up in full.
41,726,020 ordinary shares (designated PETG) are listed on the Ljubljana Stock Exchange.
The quoted share price as at 30 December 2022 was EUR 20.00 per share (EUR 25.40 as at
31 December 2021). And the book value per share of the Group as at 31 December 2022 was
EUR 20.47 (EUR 21.78 as at as at 31 December 2021).

Capital surplus
Capital surplus may be used under the conditions and for the purposes stipulated by law.
The Group’s capital surplus stood at EUR 80,991,385 as at 31 December 2022 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 2022 was the same as the Group’s capital surplus.
In 2022, there were no changes in capital surplus.
Profit reserves
Legal reserves and other profit reserves
Legal and other profit 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




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proposal of 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 profit reserves of
EUR 9,691,939, 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
Number of
shares
Cost (in EUR)*
Total purchases 1997 − 1999
722,840
3,640,782
Disposal by year
Payment of bonuses in 1997
(22,880)
(104,848)
Payment of bonuses in 1998
(21,840)
(98,136)
Payment of bonuses in 1999
(14,300)
(62,189)
Payment of bonuses in 2000
(25,740)
(119,609)
Payment of bonuses in 2001
(22,440)
(95,252)
Payment of bonuses in 2002
(36,600)
(158,256)
Payment of bonuses in 2003
(32,060)
(138,625)
Payment of bonuses in 2004
(20,880)
(90,284)
Payment of bonuses in 2005
(2,880)
(15,183)
Payment of bonuses in 2006
(8,060)
(42,492)
Payment of bonuses in 2007
(14,620)
(77,077)
Payment of bonuses in 2008
(6,480)
(34,162)
Total disposals 1997 − 2008
(228,780)
(1,036,113)
Own shares as at 31 December 2022
494,060
2,604,669
* Amounts converted from SIT into EUR at the parity exchange rate of 239.64.
In 2022, the number of own shares remained unchanged. As at 31 December 2022, the
Company held 494,060 own shares. The market value of repurchased own shares totalled
EUR 9,881,200 on the above date (EUR 12,549,124 as at 31 December 2021). The Company
did not change its reserves for own shares in 2022. For both years, the number of shares after
the 1: 20 split carried out in November 2022 is taken into account.
The Petrol Group
The company Geoplin d.o.o. Ljubljana owned 120,400 shares of Petrol d.d., Ljubljana as at 31
December 2022, the market value of which on that date was EUR 2,408,000 (EUR 3,058,160
as at 31 December 2021). The Group held 614,460 own shares as at 31 December 2022. The
market value of own shares was EUR 12,289,200 on the above date (EUR 15,607,284 as at
31 December 2021).
Other reserves
Other reserves of the Group/Company consist of fair value reserve and the hedging reserve.
Changes in these reserves that took place in 2022 are explained in more detail in Note 6.14.




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The nature of other reserves (especially drawdown) must also take into account local
legislation, which may be a matter of professional legal judgement.
The Company’s fair value reserve totalled EUR 42,539,491 as at 31 December 2022. The fair
value reserve consists of the reserves of EUR 40,513,851 resulting from the upstream merger
of Instalacija d.o.o. and the reserves of EUR 742,921 resulting from carrying financial assets
at fair value through other comprehensive income. Its value was increased by actuarial gains
resulting from the actuarial calculation of post-employment benefits on retirement totalling EUR
1,423,875 and deferred taxes of EUR 141,155.
The Group's hedging reserves as at 31 December 2022 amount to EUR 17,827,312 and relate
to the positive valuation of interest rate swaps of EUR 28,081,756 the negative valuation of
forward contracts of EUR 4,872,828 and the negative valuation of commodity derivative
financial instruments of EUR 5,381,616.
The Company's hedging reserves as at 31 December 2022 amount to EUR 26,639,848 and
relate to the positive valuation of interest rate swaps of EUR 24,537,741 and the positive
valuation of commodity derivative financial instruments of EUR 2,102,107.
Interest rate swaps are designated as a hedging instrument against the variability of cash flows
from bank borrowings.
Forward contracts and commodity-derivative financial instruments are designated as hedging
instruments against the variability of cash flows under a gas purchase agreement with a
subsidiary, Geoplin d.o.o.
Because all the material characteristics of the hedged item and the hedging instrument are
consistent (price, period, amount and quantity), we assess that the hedges are effective and
that it is appropriate to record the effects of the hedges in other comprehensive income.
Accumulated profit
Allocation of accumulated profit for 2021
At the 34th General Meeting of the joint-stock company Petrol d.d., Ljubljana held on 21 April
2022, 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 2021 financial year of EUR 61,847,942 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 30.00 per share or the total of EUR 61,667,340 (own shares excluded). The
remaining accumulated profit of EUR 180,600 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 profit reserves.
The dividends were paid out of the net profit for 2021. In 2022, the Company paid out dividends
for the year 2021 of EUR 61,667,340 and dividends from the previous years of EUR 6,932.




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Accumulated profit for 2022
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
Compulsory allocation of net profit
Net profit
19,383,878
66,482,942
Net profit after compulsory allocation
19,383,878
66,482,942
Creation of other profit reserves
9,691,939
33,241,471
Determination of accumulated profit
Net profit
9,691,939
33,241,471
Decrease by the amount of long-term deferred development costs on the balance
sheet date
-
(96,363)
Other profit reserves
52,156,001
28,702,832
Accumulated profit
61,847,940
61,847,940
Acting on the proposal of 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 profit
reserves of EUR 9,691,939, in accordance with Article 230 of the Companies Act.
The final dividends for the year ended 31 December 2022 have not yet been proposed and
confirmed by the 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 the
estimated future payments for post-employment benefits on retirement and jubilee benefits
discounted to the end of the reporting period. The calculation is performed 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 Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Post-employment benefits on retirement
5,003,701
6,190,099
3,789,738
5,244,108
Jubilee benefits
2,832,984
3,325,992
2,108,880
2,725,701
Total provisions
7,836,685
9,516,091
5,898,618
7,969,809



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The Petrol Group
Changes in provisions for employee post-employment and other long-term benefits
The Petrol Group
(in EUR)
Post-
employment
benefits
Jubilee
benefits
Total
As at 1 January 2021
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
Current service cost
483,926
80,770
564,696
Costs of interest
9,833
9,308
19,141
Post-employment benefits paid
(170,283)
(251,425)
(421,708)
Actuarial surplus/deficit
(1,501,561)
76,801
(1,424,760)
Reversal
(8,007)
(407,784)
(415,791)
Foreign exchange differences
(306)
(678)
(984)
As at 31 December 2022
5,003,701
2,832,984
7,836,685
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 3.02 percent annual discount rate for companies in Slovenia (2021: 0.36 percent), which
is based on the yield of a 10-year AA-rated euro corporate bond, a 3.79 percent discount
rate for companies in Croatia (2021: 1.25 percent), a 9.45 percent discount rate for
companies in the Federation of Bosnia and Herzegovina (2021: 3.25 percent), and a 7.07
percent discount rate for companies in Serbia (2021: 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 is based on the most recent mortality tables for the local population.
For companies in Slovenia, it is assumed that the average salaries 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 2 percentage points, Serbia 4 percentage points, the Federation of Bosnia and
Herzegovina 3 percentage points, accompanied by a growth in individual salaries of 0.5
percentage point.



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Sensitivity analysis
Discount rate
Salary increase
Staff turnover
Change in
Percentage point
Percentage point
Percentage point
Change by
1.0
-1.0
1.0
-1.0
1.0
-1.0
Effect on the balance of provisions
for employee post-employment and
other long-term benefits (in EUR)
(934,320)
1,110,468
1,112,900
(953,022)
(993,339)
1,168,491
Petrol d.d., Ljubljana
Changes in provisions for employee post-employment and other long-term benefits
Petrol d.d.
(in EUR)
Post-
employment
benefits
Jubilee
benefits
Total
As at 1 January 2021
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
Current service cost
371,525
-
371,525
Post-employment benefits paid
(146,611)
(218,304)
(364,915)
Actuarial surplus/deficit
(1,679,284)
(398,517)
(2,077,801)
As at 31 December 2022
3,789,738
2,108,880
5,898,618
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 3.02-percent annual discount rate (2021: 0.36-percent), which is based on the yield of a
10-year AA-rated euro corporate bond,
the currently applicable amount of post-employment and jubilee benefits specified in
internal acts;
staff turnover, primarily depending on their age;
mortality is based on the most recent mortality tables for the local population.
It is assumed that the average salaries will increase by 2 percentage points and, in addition,
that individual salaries will increase by 0.5 percentage point.
Sensitivity analysis
Discount rate
Salary increase
Staff turnover
Change in
Percentage point
Percentage point
Percentage point
Change by
1.0
-1.0
1.0
-1.0
1.0
-1.0
Effect on the balance of provisions for
employee post-employment and other
long-term benefits (in EUR)
(545,927)
647,890
648,058
(555,972)
(579,096)
679,823



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6.34 Other provisions
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Provisions for lawsuits
2,511,603
956,347
1,799,722
493,383
Provisions for employee post-employment and
other long-term benefits at third-party managed
service stations
2,576,650
4,040,854
2,576,650
4,040,854
Other provisions*
13,122,510
29,326,278
9,005,550
13,072,253
Total provisions
18,210,763
34,323,479
13,381,922
17,606,490
Changes in the provisions for lawsuits and changes in other provisions
The Petrol Group
Petrol d.d.
(in EUR)
Provisions for
lawsuits
Other
provisions
Provisions for
lawsuits
Other
provisions
As at 1 January 2021
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
Creation of provisions
1,957,839
-
1,388,615
-
Reversal
(319,900)
(16,194,016)
-
(4,066,703)
Utilisation
(82,276)
-
(82,276)
-
Foreign exchange differences
(407)
(9,752)
-
-
As at 31 December 2022
2,511,603
13,122,510
1,799,722
9,005,550
Other provisions*
The Group’s other provisions include provisions for partial non-compliance in the area of
renewables in transport amounting to EUR 12,986,510 as at 31 December 2022 (2021: EUR
17,819,686). Considering its position, technical limitations and the legislative framework, the
Group 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 Company has
provisions of EUR 8,869,550 as at 31 December 2022 (2021: EUR 12,953,253) in respect of
the same.
The provisions were estimated by considering all the relevant circumstances regarding
conformity with the required standards and legal aspects, and represent the management’s
best estimate of how likely the outflow of economic benefits from the Group/Company is.
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.
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



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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 2,295,570
as at 31 December 2022 (EUR 867,712 as at 31 December 2021) while the provisions for
interest on overdue amounts arising from the claims stood at EUR 216,033 (EUR 88,635 as at
31 December 2021).
The Company’s long-term provisions for lawsuits totalled EUR 1,583,688 as at 31 December
2022 (EUR 404,748 as at 31 December 2021), with the provisions for interest on overdue
amounts arising from the claims amounting to EUR 216,033 (EUR 88,635 as at 31 December
2021). 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 the estimated future payments for post-employment benefits on
retirement and jubilee benefits discounted to the end of the reporting period. The calculation is
performed 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 the provisions for employee post-employment and other long-term benefits
at third-party-managed service stations
Petrol d.d.
(in EUR)
Post-
employment
benefits
Jubilee
benefits
Total
As at 1 January 2021
2,308,050
1,852,416
4,160,466
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
Current service cost
127,960
(533,352)
(405,392)
Post-employment benefits paid
(51,087)
(103,895)
(154,982)
Actuarial surplus/deficit
(903,830)
-
(903,830)
As at 31 December 2022
1,414,737
1,161,913
2,576,650
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 3.02-percent annual discount rate (2021: 0.36-percent), which is based on the yield of a
10-year AA-rated euro corporate bond,
the currently applicable amount of post-employment and jubilee benefits specified in
internal acts;
staff turnover, primarily depending on their age;
mortality is based on the most recent mortality tables for the local population.



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It is assumed that the average salaries will increase by 2 percentage points and, in addition,
that individual salaries will increase by 0.5 percentage point.
Sensitivity analysis
Discount rate
Salary increase
Staff turnover
Change in
Percentage point
Percentage point
Percentage point
Change by
1.0
-1.0
1.0
-1.0
1.0
-1.0
Effect on the balance of provisions
for employee post-employment and
other long-term benefits (in EUR)
(234,121)
276,326
276,397
(238,441)
(248,354)
289,853

6.35 Long-term deferred income
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Long-term deferred income from
grants
31,482,845
30,614,640
28,823,739
28,605,113
Other long-term deferred income
8,448,424
3,832,804
757,357
853,958
Total
39,931,269
34,447,444
29,581,096
29,459,071
The Petrol Group
Changes in deferred income
(in EUR)
Long-term
deferred
income from
grants
Other long-
term
deferred
income
Total
As at 1 January 2021
29,504,005
3,908,471
33,412,476
Increase
6,561,174
176,462
6,737,636
Decrease
(5,450,539)
(263,849)
(5,714,388)
Foreign exchange differences
-
11,720
11,720
As at 31 December 2021
30,614,640
3,832,804
34,447,444
Increase
7,959,892
5,368,486
13,328,378
Decrease
(7,091,475)
(745,868)
(7,837,343)
Foreign exchange differences
(212)
(6,998)
(7,210)
As at 31 December 2022
31,482,845
8,448,424
39,931,269
Long-term deferred income refers to funds received based on European projects and cohesion
funding in the area of energy solutions.
The increase of EUR 7,959,892 (2021: EUR 6,561,174) in long-term deferred income from
grants received relates to funds received under European projects and cohesion funds in the
field of energy solutions, while the decrease of EUR 7,091,475 (2021: EUR 5,450,539) relates
to costs incurred on projects for which we have received funds.



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Petrol d.d., Ljubljana
Changes in deferred income
(in EUR)
Long-term
deferred
income
from grants
Other long-
term
deferred
income
Total
As at 1 January 2021
27,522,894
896,879
28,419,773
Increase
6,471,686
176,462
6,648,148
Decrease
(5,389,467)
(219,383)
(5,608,850)
As at 31 December 2021
28,605,113
853,958
29,459,071
Increase
7,363,508
172,244
7,535,752
Decrease
(7,144,882)
(268,845)
(7,413,727)
As at 31 December 2022
28,823,739
757,357
29,581,096

6.36 Financial liabilities
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Current financial liabilities
Bank loans
85,954,276
61,575,727
59,493,518
61,575,727
Bonds issued
300,831
246,928
300,831
246,928
Liabilities to banks arising from interest
rate swaps
-
2,503,965
-
2,503,965
Liabilities to banks arising from forward
contracts
8,837,601
287,484
745,579
287,484
Other loans and financial liabilities
1,563,725
1,228,002
165,271,773
207,755,317
96,656,433
65,842,106
225,811,701
272,369,421
Non-current financial liabilities
Bank loans
357,416,530
389,623,422
300,538,159
339,746,359
Bonds issued
43,816,929
43,809,402
43,816,929
43,809,402
Loans obtained from other companies
379,543
380,171
21,000,000
21,000,000
401,613,002
433,812,995
365,355,088
404,555,761
Total financial liabilities
498,269,435
499,655,101
591,166,789
676,925,182
The Petrol Group
In 2022, the average interest rate on short-term and long-term sources of finance (including
interest rate hedging) stood at 1.91 percent p.a. (2021: 1.92 percent p.a.).

The lending banks require that the financial covenants defined in the loan agreements are
maintained at the Petrol Group level. Failure to meet the prescribed covenant values may result
in early maturity of the loans. In 2022, before the end of the financial year, the Group reached
agreements with banks to change the net debt/EBITDA ratio from the agreed contractual value
for 2022. The Group is thus in compliance with all the financial covenants, which demonstrates
a healthy liquidity position and confirms the banks’ confidence in the Group’s continued
operations.


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Derivative financial instruments
Liabilities arising from forward contracts for the purchase of US dollars, which stood at EUR
8,837,601 represent the fair values of outstanding forward contracts as at 31 December 2022
(2021: EUR 287,484). The above financial liabilities arising from derivative financial
instruments should be considered in conjunction with outstanding contracts disclosed under
financial assets at fair value through profit or loss in Note 6.29.
Among the forward liabilities, a part of the liability in the amount of EUR 6,015,836 is earmarked
for hedging and the effect of these forward contracts is recognised in other comprehensive
income and shown in the hedging reserve within equity.
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 2022, the average interest rate on short-term and long-term sources of finance (including
interest rate hedging) stood at 1.69 percent p.a. (2021: 1.89 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 loans obtained by the Company relate mainly to loans from subsidiaries amounting to
EUR 177,154,655 (2021: EUR 221,277,769), as shown in the table below.
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
Petrol d.o.o.
96,031,378
85,842,742
Geoplin d.o.o. Ljubljana
38,500,000
86,950,000
IGES d.o.o.
15,803,898
15,786,457
Petrol BH Oil Company d.o.o. Sarajevo
11,700,000
20,000,000
Petrol Trade Handelsgesellschaft m.b.H.
10,193,496
6,779,404
Petrol Geo d.o.o.
2,866,518
1,679,516
MBills d.o.o.
1,650,000
3,850,000
Geoenergo d.o.o.
300,000
300,000
Petrol Skladiščenje d.o.o.
109,365
89,650
Petrol d.o.o. Beograd
-
-
Total
177,154,655
221,277,769


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Changes in financial liabilities
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
As at 1 January
499,655,101
347,167,926
676,925,182
438,409,978
New acquisitions as a result of control obtained
-
109,787,346
-
-
Proceeds from borrowings
1,884,402,641
926,931,269
2,577,234,111
1,327,414,213
Repayment of borrowings
(1,891,704,933)
(880,837,557)
(2,662,608,090)
(1,085,490,135)
Change in fair value of financial instruments
6,046,152
(3,374,046)
(2,045,870)
(5,460,221)
Changes in interest liabilities
16,239
(26,583)
1,661,456
2,051,347
Foreign exchange differences
(145,765)
6,746
-
-
As at 31 December
498,269,435
499,655,101
591,166,789
676,925,182

6.37 Lease liabilities
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Non-current lease liabilities
101,100,126
92,991,633
27,331,350
26,735,533
Current lease liabilities
17,498,969
13,768,130
3,965,318
2,717,596
Total lease liabilities
118,599,095
106,759,763
31,296,668
29,453,129
The Group’s lease liabilities include liabilities arising from contracts for the leased assets, the
value of which was determined in accordance with the IFRS 16.
Changes in lease liabilities
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
As at 1 January
106,759,763
64,466,463
29,453,129
31,868,245
New acquisitions as a result of control obtained
-
49,176,771
-
-
Increase
96,549,794
11,857,655
5,711,402
1,141,233
Decrease
(67,938,761)
(6,664,393)
-
-
Interest
4,557,812
2,425,310
1,315,973
1,291,951
Lease payments
(21,169,006)
(14,481,349)
(5,183,836)
(4,848,300)
Foreign exchange differences
(160,507)
(20,694)
-
-
As at 31 December
118,599,095
106,759,763
31,296,668
29,453,129


6.38 Non-current operating liabilities
All non-current operating liabilities include the liabilities of Petrol d.d., Ljubljana.
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Liabilities arising from interests acquired
2,024,000
5,024,000
2,024,000
5,024,000
Liabilities arising from assets received for
administration
572,382
637,782
572,382
637,782
Total non-current operating liabilities
2,596,382
5,661,782
2,596,382
5,661,782



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The liabilities for shares in companies purchased are mainly liabilities for the payment of the
purchase price of Crodux Derivati Dva d.o.o. amounting to EUR 2,000,000.
The Petrol Group and Petrol d.d., Ljubljana company
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.

6.39 Current operating liabilities
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Trade liabilities
829,990,796
549,530,229
598,342,065
349,637,848
Excise duty liabilities
116,169,181
61,892,936
101,934,781
44,570,278
Value added tax liabilities
103,251,423
44,535,860
73,163,760
22,003,518
Liabilities to employees
10,274,352
9,130,848
6,529,867
5,709,649
Other liabilities to the state and other state institutions
4,815,981
3,758,297
1,720,853
1,181,150
Liabilities arising from interests acquired
3,947,693
6,597,693
3,450,000
6,100,000
Liabilities for environmental charges and contributions
4,486,633
8,503,921
1,886,975
8,476,548
Import duty liabilities
2,946,580
596,054
-
-
Social security contribution liabilities
1,945,001
1,742,750
952,677
815,529
Liabilities associated with the allocation of profit or loss
768,880
775,812
768,880
775,812
Other liabilities
3,507,389
3,392,213
3,463,423
3,237,600
Total current operating and other liabilities
1,082,103,909
690,456,613
792,213,281
442,507,932
In 2022, the liabilities associated with the allocation of profit or loss increased based on the
General Meeting resolution on the payment of dividends of EUR 61,667,340 (2021: EUR
45,222,716) and decreased based on the payment of the 2021 dividends of EUR 61,667,340
(2021: EUR 45,222,706) to shareholders and the payment of dividends from previous years
totalling EUR 6,932 (2021: EUR 185).
Among trade liabilities there is liability to Gazprom measured at fair value in amount of EUR
3,550 thousand.

6.40 Commodity derivative instruments
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Commodity derivative instruments
29,872,456
116,341
16,007,602
116,341
Total commodity derivative instruments
29,872,456
116,341
16,007,602
116,341
Of the commodity derivative instruments, a part of EUR 9,727,153 is designated as hedging
and the effect from these commodity derivatives is recognised in other comprehensive income
and shown in the hedging reserve within equity.



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6.41 Contract liabilities
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Short-term prepayments and securities given
20,018,795
12,053,171
16,295,826
5,973,801
Deferred prepaid card revenue
3,016,958
2,611,155
2,071,191
1,932,037
Deferred revenue from rebates and discounts granted
86,523
164,018
-
-
Other
31,299
-
-
-
Total contract liabilities
23,153,575
14,828,344
18,367,017
7,905,838
Revenue related to advances received and securities received from customers is expected to
be recognised in the financial statements within two months of the receipt of the advance or
security.
6.42 Other liabilities
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Accrued annual leave expenses
3,964,599
3,229,710
2,279,179
1,755,565
Accrued expenses for tanker demurrage
968,947
502,794
968,947
502,794
Accrued motorway site lease payments
531,993
592,868
531,993
592,868
Accrued concession fee costs
360,333
433,122
356,736
316,567
Short-term provisions for onerous contracts
785,846
20,924,454
-
20,924,454
Other accrued costs
26,736,957
29,749,767
26,345,012
23,668,402
Other deferred revenue
4,770,243
3,185,584
4,643,206
3,093,276
Total other liabilities
38,118,918
58,618,299
35,125,073
50,853,926
Other accrued charges mainly represent accrued labour costs of EUR 3,883,773, accrued
contractual penalties of EUR 2,933,191, accrued material costs of EUR 648,811, accrued
payment card costs of EUR 472,236 and accrued intellectual services costs of EUR 301,793.
Other costs include licence maintenance costs, logistics costs, costs of services provided to
energy solutions, commissions payable and other accrued costs.
As at 31 December 2022, the Group/Company has concluded contracts with customers for the
supply of electricity for 2023. As part of the sold quantities of the Group/Company for 2023 is
not purchased at relevant prices, compared to the contract prices in sales contracts, the costs
of fulfilling contractual commitments will exceed the expected economic benefits from the
contracts.
Accordingly, the Group/Company has formed new provisions from short-term onerous
contracts for the supply of electricity in the amount of EUR 785,846. The amount was
determined based on the estimated economic benefits and the costs of services under
contracts for the supply of electricity. The projected market prices of electricity for 2023 were
used in the calculations. Provisions from 2021 in the amount of EUR 20,924,453 were used
up in 2022.


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 2022.




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7.1 Credit risk
In 2022, 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 expected credit loss (ECL) is calculated as the product of:
Unsecured receivables from the partner (Earnings at Default EAD)
Probabilities of default by the partner based on an internally developed model that takes
into account the Group's business data with the partner and the partner's financial data
(Probability of Default PD).
The carrying amount of financial assets has the maximum exposure to credit risks and was the
following as at 31 December 2022:
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Financial assets at fair value through other
comprehensive income
42,146,412
5,909,845
35,494,605
3,218,360
Non-current loans
949,277
991,831
59,134,780
83,299,185
Non-current operating receivables
7,015,756
8,228,771
7,007,540
8,219,107
Contract assets
13,319,362
3,338,893
11,722,300
7,604,649
Current loans
1,679,138
16,168,692
41,343,762
16,181,049
Current operating receivables (excluding
rec. from the state)
840,186,387
644,683,856
566,790,889
385,584,957
Financial assets at fair value through profit
or loss
2,646,334
34,666,891
2,525,437
34,561,544
Cash and cash equivalents
100,962,531
100,226,890
51,203,361
57,567,397
Total assets
1,008,905,197
814,215,669
775,222,674
596,236,248
The item that was most exposed to credit risk on the reporting date was the current operating
receivables. Compared to the end of 2022, they decreased, in nominal terms, by 30 percent in
the case of the Group and 47 percent in the case of the Company.
Financial assets at fair value through profit or loss consist mainly of derivative financial
instruments.
The Group’s current operating receivables by maturity
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
572,042,233
51,421,340
7,287,064
1,296,628
2,727,703
634,774,968
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
581,349,164
51,808,754
7,299,072
1,314,736
2,912,130
644,683,856





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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
738,315,493
71,183,742
9,407,479
3,515,484
2,202,719
824,624,917
Interest receivables
6,188
1,933
33,538
16,781
64,621
123,061
Other receivables (excluding
receivables from the state)
14,610,337
787,652
188
758
39,474
15,438,409
Total as at
31 December 2022
752,932,018
71,973,327
9,441,205
3,533,023
2,306,814
840,186,387
The Company’s current operating receivables by maturity
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
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
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
513,737,535
27,798,258
4,482,811
1,589,324
7,659,003
555,266,931
Interest receivables
-
-
-
-
1,388,192
1,388,192
Other receivables
(excluding receivables
from the state)
9,531,621
563,655
188
758
39,544
10,135,766
Total as at
31 December 2022
523,269,156
28,361,913
4,482,999
1,590,082
9,086,739
566,790,889
Changes in allowances for the current operating receivables of the Group
(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)
Creation/reversal of allowances affecting profit or loss
(7,966,732)
(65,643)
(8,032,375)
Changes in allowances not affecting profit or loss
(3,176,365)
(35,760)
(3,212,125)
Write-downs
2,919,772
126,043
3,045,815
Foreign exchange differences
(11,559)
(3,475)
(15,034)
As at 31 December 2021
(59,089,851)
(1,192,941)
(60,282,792)





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(in EUR)
Allowance for
current
operating
receivables
Allowance for
current
interest
receivables
Total
As at 1 January 2022
(59,089,851)
(1,192,941)
(60,282,792)
Creation/reversal of allowances affecting profit or loss
(7,598,209)
(99,466)
(7,697,675)
Changes in allowances not affecting profit or loss
249,964
(290,411)
(40,447)
Write-downs
5,462,098
343,417
5,805,515
Foreign exchange differences
20,241
(9)
20,232
As at 31 December 2022
(60,955,757)
(1,239,410)
(62,195,167)
Changes in allowances for the current operating receivables of the Company
(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)
Allowance for
current
operating
receivables
Allowance for
current
interest
receivables
Total
As at 1 January 2022
(31,923,202)
(943,204)
(32,866,406)
Creation/reversal of allowances affecting profit or loss
(2,734,572)
-
(2,734,572)
Changes in allowances not affecting profit or loss
-
(193,123)
(193,123)
Write-downs
3,599,101
292,450
3,891,551
As at 31 December 2022
(31,058,673)
(843,877)
(31,902,550)
Collateralisation of receivables
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Current trade receivables
883,095,961
692,538,011
585,600,764
409,335,386
Allowances
(58,471,044)
(57,763,043)
(30,333,833)
(31,098,414)
Current trade receivables including allowances
824,624,917
634,774,968
555,266,931
378,236,972
Overdue current trade receivables (gross amount)
130,909,575
107,423,690
62,527,269
58,813,962
Share of overdue receivables in outstanding receivables
15 %
16 %
11 %
14 %
Current operating receivables over EUR 100,000 secured
with high-quality collaterals:
Credit insurance
283,079,740
214,325,348
126,186,073
97,047,976
Supplier (offsetting transaction)
210,720,716
122,394,599
166,740,382
78,178,182
Bank guarantee
12,705,138
17,283,712
3,162,336
2,882,496
Lien
10,151,491
10,034,391
5,666,766
3,222,076
Received prepayments and collaterals
9,353,964
1,499,449
9,181,402
1,369,708
High-quality guarantee
8,726,199
14,155,235
7,923,843
7,239,420
Total current operating receivables over EUR 100,000
secured with high-quality collaterals
534,737,248
379,692,734
318,860,802
189,939,857
Collateral coverage (v %)
79 %
79 %
84 %
81 %





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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 42,314,524 as at 31
December 2022 (the customer is a company), accounting for 4.8 percent of the Group’s trade
receivables. The receivable from the Company’s largest single customer stood at EUR
42,314,524 as at 31 December 2022 (the customer is a company), accounting for 7.2 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 40,310 active customers (legal persons) as at
31 December 2022. 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 2022, 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.
The Petrol Group
Petrol d.d.
(in days)
2022
2021
2022
2021
Days sales outstanding
Contract days
27
36
23
31
Overdue receivables in days
3
4
2
3
Total days sales outstanding
30
40
25
34
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
The business and wider societal environment in the EU and globally were strongly influenced
by the war in Ukraine, the crisis situation in the energy markets (high prices and the uncertain
supply of fuels and energy products), the resulting diverging national approaches to regulating
fuel prices to mitigate the impact of the energy crisis on people and businesses, and high
inflation. Therefore, the Petrol Group continues to intensify its activities and pay more attention
and care to liquidity risk management.
Successfully managing the Group’s/Company’s liquidity risk in line with Standard & Poor’s
guidelines remains a key objective despite the challenging circumstances.





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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 common approach to banks in domestic and foreign financial markets,
- computer-assisted system for the management of the cash flows of the parent company
and all its subsidiaries;
- the centralised collection of available cash through cash pooling.
Despite the impact of the war in Ukraine, the crisis situation in the energy markets and the
consequences of different national approaches to the regulation of energy prices in the
domestic market and in the markets where the Group operates, which present additional
uncertainties for the Group’s operations, we have optimised our cash flow planning and
responded in a timely manner to all changes and challenges, ensuring optimal and strong
liquidity for the Group. In order to ensure the Group’s stable liquidity position, in the third
quarter, we started activities to obtain additional credit lines to further strengthen the Group’s
stable and solid liquidity position. Our strong liquidity position also allows for the settlement of
all liabilities as they fall due.
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.
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
Carrying
Contractual cash flows
(in EUR)
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
65,842,106
70,964,562
51,114,568
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
-
-
Commodity derivative instruments
116,341
116,341
116,341
-
-
-
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
The current financial liabilities include derivative financial instruments totalling EUR 2,791,449.





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Carrying
Contractual cash flows



(in EUR)
amount of
liabilities
Liability
0 to 6
months
6 to 12
months
1 to 5
years
More than 5
years
Non-current financial liabilities
401,613,002
433,536,129
-
-
372,631,738
60,904,391
Non-current lease liabilities
101,100,126
109,074,515
-
-
85,655,698
23,418,817
Non-current operating liabilities (excluding
other liabilities)
2,024,000
2,024,000
-
-
2,024,000
-
Current financial liabilities
96,656,433
110,096,768
61,187,352
48,909,416
-
-
Current lease liabilities
17,498,969
21,007,713
11,041,027
9,966,686
-
-
Liabilities arising from commodity forward
contracts*
-
1,636,926,610
756,687,613
622,733,589
257,505,408
-
Current operating liabilities (excluding
liabilities to the state, employees and
arising from advance payments)
838,214,758
838,214,758
837,450,259
764,499
-
-
Commodity derivative instruments
29,872,456
29,872,456
29,872,456
-
-
-
As at 31 December 2022
1,486,979,744
3,180,752,949
1,696,238,707
682,374,190
717,816,844
84,323,208
The current financial liabilities include derivative financial instruments totalling EUR 8,837,601.
The Company’s liabilities by maturity
Carrying
Contractual cash flows
(in EUR)
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
272,369,421
279,188,159
105,988,961
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
-
-
Commodity derivative instruments
116,341
116,341
116,341
-
-
-
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
The current financial liabilities include derivative financial instruments totalling EUR 2,791,449.





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Carrying
Contractual cash flows



(in EUR)
amount of
liabilities
Liability
0 to 6
months
6 to 12
months
1 to 5
years
More than 5
years
Non-current financial liabilities
365,355,088
397,362,215
-
-
315,808,328
81,553,887
Non-current lease liabilities
27,331,350
36,394,573
-
-
16,335,004
20,059,569
Non-current operating liabilities
(excluding other liabilities)
2,024,000
2,024,000
-
-
2,024,000
-
Current financial liabilities
225,811,701
240,808,279
200,158,490
40,649,789
-
-
Current lease liabilities
3,965,318
5,162,635
2,691,072
2,471,563
-
-
Liabilities arising from
commodity forward contracts*
-
1,625,382,552
748,075,117
619,802,027
257,505,408
-
Current operating liabilities
(excluding liabilities to the state,
employees and arising from
advance payments)
606,024,368
606,024,367
605,806,817
217,550
-
-
Commodity derivative
instruments
16,007,602
16,007,602
16,007,602
-
-
-
Contingent liabilities for
guarantees issued**
-
368,063,707
368,063,707
-
-
-
As at 31 December 2022
1,246,519,427
3,297,229,930
1,940,802,805
663,140,929
591,672,740
101,613,456
* 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.
The current financial liabilities include derivative financial instruments totalling EUR 745,579.





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7.3 Foreign exchange risk
The Group
The Petrol Group
31 December 2021
(in EUR)
EUR
USD
HRK
BAM
RSD
RON
Other
Total
Cash and cash equivalents
61,013,124
1,156,764
29,756,999
2,417,531
2,101,401
3,375,162
405,909
100,226,890
Current operating receivables (excluding rec. from the state)
481,505,521
847,677
106,875,723
27,387,657
27,616,081
442,479
8,718
644,683,856
Non-current operating receivables
8,223,281
-
3,479
-
2,011
-
-
8,228,771
Current loans
15,336,028
-
313,552
1,566
-
-
517,546
16,168,692
Non-current loans
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)
(1,050)
(632,431)
(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)
-
(58,967)
-
(32,634)
-
-
(65,842,106)
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)
(62,852,288)
1,183,822
19,790,111
23,490,747
3,818,509
299,742
(401,434,771)
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)
22,596,287
1,183,822
19,790,111
23,490,747
13,675,704
299,742
(401,434,771)
The Petrol Group
31 December 2022
(in EUR)
EUR
USD
HRK
BAM
RSD
RON
Other
Total
Cash and cash equivalents
54,580,906
7,933,042
19,251,321
3,514,250
10,561,710
4,340,968
780,334
100,962,531
Current operating receivables (excluding rec. from the state)
664,758,580
3,185,317
101,803,591
38,109,671
31,832,732
442,479
54,017
840,186,387
Non-current operating receivables
7,013,743
-
-
-
2,013
-
-
7,015,756
Current loans
1,321,649
-
340,265
990
-
-
16,234
1,679,138
Non-current loans
52,798
-
894,523
-
-
1,956
-
949,277
Non-current operating liabilities (excluding other liabilities)
(2,024,000)
-
-
-
-
-
-
(2,024,000)
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments)
(651,101,201)
(143,987,078)
(37,239,860)
(2,000,207)
(3,710,871)
-
(175,541)
(838,214,758)
Non-current financial liabilities
(351,703,263)
-
(49,909,739)
-
-
-
-
(401,613,002)
Non-current lease liabilities
(94,209,290)
-
-
(2,930,085)
(3,960,751)
-
-
(101,100,126)
Current financial liabilities
(96,375,479)
-
(280,954)
-
-
-
-
(96,656,433)
Current lease liabilities
(16,459,073)
-
-
(401,466)
(638,430)
-
-
(17,498,969)
Exposure of the statement of financial position
(484,144,630)
(132,868,719)
34,859,147
36,293,153
34,086,403
4,785,403
675,044
(506,314,199)
Nominal value of forward contracts
(450,436,390)
440,579,195
-
-
-
9,857,195
-
-
Net exposure of the statement of financial position
(934,581,020)
307,710,476
34,859,147
36,293,153
34,086,403
14,642,598
675,044
(506,314,199)





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The Company
Petrol d.d.
31 December 2021
(in EUR)
EUR
USD
HRK
BAM
RSD
RON
Other
Total
Cash and cash equivalents
53,486,780
351,048
19,083
55
29,358
3,366,757
314,316
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 loans
16,181,049
-
-
-
-
-
-
16,181,049
Non-current loans
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)
-
-
-
(631,721)
(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)
-
(17,797,013)
-
-
-
-
(272,369,421)
Current lease liabilities
(2,717,596)
-
-
-
-
-
-
(2,717,596)
Exposure of the statement of financial position
(460,862,423)
(62,604,781)
(364,634)
55
29,358
3,809,236
(308,687)
(520,301,876)
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)
22,843,794
(364,634)
55
29,358
13,666,431
(308,687)
(520,301,876)
Petrol d.d.
31 December 2022
(in EUR)
EUR
USD
HRK
BAM
RSD
RON
Other
Total
Cash and cash equivalents
38,154,909
7,914,181
106,873
-
29,396
4,300,827
697,175
51,203,361
Current operating receivables (excluding rec. from the state)
564,992,018
898,973
403,841
-
-
442,479
53,578
566,790,889
Non-current operating receivables
7,007,540
-
-
-
-
-
-
7,007,540
Current loans
41,042,883
-
300,879
-
-
-
-
41,343,762
Non-current loans
56,795,954
-
2,338,826
-
-
-
-
59,134,780
Non-current operating liabilities (excluding other liabilities)
(2,024,000)
-
-
-
-
-
-
(2,024,000)
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments)
(461,963,051)
(143,881,855)
(5,961)
-
-
-
(173,500)
(606,024,367)
Non-current financial liabilities
(365,355,088)
-
-
-
-
-
-
(365,355,088)
Non-current lease liabilities
(27,331,350)
-
-
-
-
-
-
(27,331,350)
Current financial liabilities
(225,449,533)
-
(362,168)
-
-
-
-
(225,811,701)
Current lease liabilities
(3,965,318)
-
-
-
-
-
-
(3,965,318)
Exposure of the statement of financial position
(378,095,036)
(135,068,701)
2,782,290
-
29,396
4,743,306
577,253
(505,031,492)
Nominal value of forward contracts
(151,093,284)
141,236,089
-
-
-
9,857,195
-
-
Net exposure of the statement of financial position
(529,188,320)
6,167,388
2,782,290
-
29,396
14,600,501
577,253
(505,031,492)





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The following exchange rates prevailed in 2022 and 2021:
Per 1 euro
31 December
2022
31 December
2021
USD
1.0666
1.1334
HRK
7.5365
7.5211
BAM
1.9558
1.9558
RSD
117.2900
117.4400
CZK
24.1160
24.9170
RON
4.9495
4.9494
MKD
61.6000
61.5350
HUF
400.8700
370.1500
CHF
0.9847
1.0363
BGN
1.9558
1.9558
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 and natural gas 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 cash flows from purchase of oil and petroleum
products. The hedging instruments used in this case are forward contracts entered into with
banks.
The effect of forward contracts
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Unrealised loss
(8,837,601)
(287,484)
(745,579)
(287,484)
Unrealised gain
348,745
-
348,745
-
Realised loss
(7,457,219)
(1,728,783)
(15,549,241)
(1,728,783)
Realised gain
19,339,011
4,195,325
19,339,011
4,195,325
Total effect of forward contracts
3,392,936
2,179,058
3,392,936
2,179,058
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 2,622,222 (2021:
expenses of EUR 2,721,775) for the Group and revenue of EUR 2,778,784 (2021: expenses
of EUR 1,787,256) for the Company.
Given that forward contracts for hedging against foreign exchange risks are entered into with
first-class European banks, the Group/Company considers that 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 2022, the Group/Company was also exposed to certain other currencies (RON), 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.





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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 3,372,503 (2021: EUR 3,161,421), 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. From the beginning of 2022, the forward price of next month’s Diesel 10 ppm CIF
Med H has increased from EUR 591.36 per MT to EUR 867.66 per MT, an increase of 47
percent. The price peaked in mid-June 2022, when it reached EUR 1,267.74 per MT. Such a
high increase in energy product prices significantly increases the price risks managed by the
Group through a set of limit systems defined according to the business partner and product,
and through appropriate monitoring and control processes. The 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.
As part of the management of volumetric and price risks, regular adjustments to retail and
wholesale plans were made and appropriate financial hedging transactions were entered into.
The changes to the regulations had no impact on the price and volumetric risk management
system itself, but there was an impact on the sale of petroleum products. The State (Slovenia)
is expected to make good the losses incurred during the period, as a result of the Decree
limiting the selling prices of petroleum products.
Trading in electricity exposes the Group to price and volumetric risks. In the period from the
beginning of 2022 until 26 August 2022, prices for electricity supplied in Hungary in 2023 have
been increasing. On 26 August 2022, the price peaked at EUR 1,007 per MWh and then
gradually decreased until the end of 2022. On 28 December 2022 (the last day of quotation of
the annual price for 2023 delivery in Hungary on the EEX), the price was EUR 259.85 per
MWh, up 104 percent compared to the beginning of the year when the price was EUR 127.18
per MWh. The main reason for the high rise in electricity prices is the high rise in natural gas
prices as a result of the closure of nuclear power plants in Germany and the war in Ukraine.
The natural gas prices for delivery in 2022 in Austria (CEGH market) have increased since the
beginning of 2022 from EUR 46.18 per MWh to EUR 88.37 per MWh (28 December 2022), i.e.
by 91 percent, peaking on the same day as electricity (26 August 2022) at EUR 314.6 per
MWh.
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,





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the Petrol Group regularly monitors the adequacy of the limit systems used, which it renews
and supplements if necessary.
The effect of commodity swaps
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Unrealised loss
(29,872,456)
(116,341)
(16,007,602)
(116,341)
Unrealised gain
5,380,773
34,359,395
5,259,876
34,254,048
Realised loss
(528,826,694)
(235,612,141)
(535,263,668)
(236,216,896)
Realised gain
517,714,046
235,572,585
519,804,227
235,592,686
Total effect of commodity swaps
(35,604,331)
34,203,498
(26,207,167)
33,513,497
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 2022 would mean that
the market value of the contracts would be EUR ±252,000. The calculation includes both
physical and financial transactions.
In the case of petroleum products and natural gas, volumes are bought on the market with a
view to selling to end-customers. In this case, there is no trading with petroleum products,
which means that the key risk is not the price risk but the volumetric risk, which is managed by
a limit system linked to the volumetric exposure.
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 2022, 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.





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Overview of EURIBOR interest rates in 2022 and 2021
6-month
Euribor
3-month
Euribor
1-month
Euribor
Value as at 31/12/2021 (in percent)
(0.544)
(0.571)
(0.594)
Value as at 31/12/2022 (in percent)
2.693
2.132
1.884
Change in interest rate (in percentage points)
3.237
2.703
2.478
The lowest value in 2022 (in percent)
(0.539)
(0.576)
(0.576)
The lowest value in 2022 (in percent)
2.752
2.184
1.913
Change between the lowest and the highest interest
rate (in percentage points)
3.291
2.76
2.489
Average value in 2021 (in percent)
(0.523)
(0.549)
(0.561)
Average value in 2022 (in percent)
0.682
0.348
0.094
Change in average interest rate (in percentage
points)
1.205
0.897
0.656
Interest rate swaps by maturity
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
6 to 12 months
34,000,000
74,000,000
34,000,000
74,000,000
1 to 5 years
323,000,000
307,000,000
273,000,000
257,000,000
Total interest rate swaps
357,000,000
381,000,000
307,000,000
331,000,000
The effect of interest rate swaps
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Unrealised loss on effective transactions
35,701,883
4,109,730
31,719,264
3,283,988
Realised loss
(329,734)
(2,156,222)
(329,734)
(1,968,491)
Total effect of interest rate swaps
35,372,149
1,953,508
31,389,530
1,315,497
The Group’s/Company’s exposure to the risk of changing interest rates was as follows:
Financial instruments with a fixed interest rate
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Loans
1,486,919
1,788,799
95,514,226
95,847,532
Financial liabilities
(91,328,000)
(144,855,441)
(257,150,704)
(316,133,210)
Net financial instruments with a fixed interest rate
(89,841,081)
(143,066,642)
(161,636,478)
(220,285,678)





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Financial instruments with a variable interest rate
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Loans
1,141,496
15,371,724
4,964,316
3,632,702
Financial liabilities
(406,941,435)
(354,799,660)
(334,016,085)
(360,791,972)
Net financial instruments with a variable interest
rate
(405,799,939)
(339,427,936)
(329,051,769)
(357,159,270)
Value of the financial liabilities hedged using interest rate swaps
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Interest rate swaps
357,000,000
381,000,000
307,000,000
331,000,000
Total interest rate swaps
357,000,000
381,000,000
307,000,000
331,000,000
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
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Cash flow variability (net)100 bp
(487,999)
415,721
(220,518)
(261,593)
Cash flow variability (net)200 bp
(975,999)
831,441
(441,035)
(523,185)
Change in profit or loss in the case of a decrease by 100 or 200 bp
The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Cash flow variability (net)100 bp
487,999
(415,721)
220,518
261,593
Cash flow variability (net)200 bp
975,999
(831,441)
441,035
523,185





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7.6 Capital 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. S&P’s Global Ratings placed the Company on
CreditWatch Negative in July 2022 due to the impact of the negative intervention in the fuel
market, but in December 2022 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 2022, the Petrol Group continued to implement its strategic direction in the area of
indebtedness and maintained the net debt/equity ratio at acceptable levels that provide the
Group with a stable position for future operations.
Despite the consequences of the negative intervention in the fuel market, the uncertainties
regarding the reimbursement of the damage caused by the intervention and the risks
associated with possible additional interventions in the energy markets in 2022, the Petrol
Group continued to implement its strategic direction in the area of indebtedness and
maintained the net debt/equity ratio at acceptable levels that provide the Group with a stable
position for future operations. The Group obtained approval from the banks for the deviation
of the Net Debt/EBITDA ratio from the agreed contractual value in 2022, which demonstrates
the Group’s healthy liquidity position and confirms the banks’ confidence in the Group’s future
performance.




-5,000,000
-4,000,000
-3,000,000
-2,000,000
-1,000,000
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
-2 % -1 % 0 % 1 % 2 %
Change in profit or loss in EUR
Interest rate change in %
Effect of changes in interest rates on profit or loss
The Petrol Group
2022
Petrol d.d. 2022

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The Petrol Group
Petrol d.d.




(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Non-current financial liabilities
401,613,002
433,812,995
365,355,088
404,555,761
Non-current lease liabilities
101,100,126
92,991,633
27,331,350
26,735,533
Current financial liabilities
96,656,433
65,842,106
225,811,701
272,369,421
Current lease liabilities
17,498,969
13,768,130
3,965,318
2,717,596
Total financial liabilities
616,868,530
606,414,864
622,463,457
706,378,311
Total equity
860,166,621
908,698,005
597,990,971
609,914,620
Debt/Equity
0,72
0,67
1,04
1,16
Cash and cash equivalents
100,962,531
100,226,890
51,203,361
57,567,397
Net financial liabilities
515,905,999
506,187,974
571,260,096
648,810,914
Net debt/Equity
0,60
0,56
0,96
1,06

7.7 Carrying amount and fair value of financial instruments
The Petrol Group
The Petrol Group
31 December 2022
31 December 2021
(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
42,146,412
42,146,412
5,909,845
5,909,845
Non-derivative financial assets at amortised cost
Loans
2,628,415
2,628,415
17,160,523
17,160,523
Operating receivables (excluding receivables from the state)
847,202,143
847,202,143
652,912,627
652,912,627
Contract assets
13,319,362
13,319,362
13,319,362
3,338,893
3,338,893
Cash and cash equivalents
100,962,531
100,962,531
100,226,890
100,226,890
Total non-derivative financial assets
1,006,258,863
1,006,258,863
779,548,778
779,548,778
Non-derivative financial liabilities at amortised cost
Bank loans and other financial liabilities (excluding derivative
fin.instr.)
(489,431,834)
(489,431,834)
(496,863,652)
(496,863,652)
Lease liabilities
(118,599,095)
(118,599,095)
(106,759,763)
(106,759,763)
Operating liabilities (excluding other non-current liabilities and
current liabilities to the state and employees)
(840,238,758)
(840,238,758)
(565,319,947)
(565,319,947)
Total non-derivative financial liabilities
(1,448,269,687)
(1,448,269,687)
(1,168,943,362)
(1,168,943,362)
Derivative financial instruments at fair value
Derivative financial instruments (assets)
2,646,334
2,646,334
34,666,891
34,666,891
Derivative financial instruments (liabilities)
(38,710,057)
(38,710,057)
(2,907,790)
(2,907,790)
Total derivative financial instruments
(36,063,723)
(36,063,723)
31,759,101
31,759,101




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Petrol d.d., Ljubljana
Petrol d.d.
31 December 2022
31 December 2021
(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
35,494,605
35,494,605
3,218,360
3,218,360
Non-derivative financial assets at amortised cost
Loans
100,478,542
100,478,542
99,480,234
99,480,234
Operating receivables (excluding receivables from the state)
573,798,429
573,798,429
393,804,064
393,804,064
Contract assets
11,722,300
11,722,300
7,604,649
7,604,649
Cash and cash equivalents
51,203,361
51,203,361
57,567,397
57,567,397
Total non-derivative financial assets
772,697,237
772,697,237
561,674,704
561,674,704
Non-derivative financial liabilities at amortised cost
Bank loans and other financial liabilities (excluding
derivative fin.instr.)
(590,421,210)
(590,421,210)
(674,133,733)
(674,133,733)
Lease liabilities
(31,296,668)
(31,296,668)
(29,453,129)
(29,453,129)
Operating liabilities (excluding other non-current liabilities
and current liabilities to the state and employees)
(608,048,368)
(608,048,368)
(364,775,260)
(364,775,260)
Total non-derivative financial liabilities
(1,229,766,246)
(1,229,766,246)
(1,068,362,122)
(1,068,362,122)
Derivative financial instruments at fair value
Derivative financial instruments (assets)
2,525,437
2,525,437
34,561,544
34,561,544
Derivative financial instruments (liabilities)
(16,753,181)
(16,753,181)
(2,907,790)
(2,907,790)
Total derivative financial instruments
(14,227,744)
(14,227,744)
31,653,754
31,653,754
Presentation of financial assets and liabilities disclosed at fair value according to the
fair value hierarchy
The Petrol Group
Fair value of assets
31 December 2022
31 December 2021
(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
-
2,646,334
-
2,646,334
-
34,666,891
-
34,666,891
Financial assets at fair value through
other comprehensive income
-
37,699,989
4,446,423
42,146,412
-
1,442,724
4,467,121
5,909,845
Total assets at fair value
-
40,346,323
4,446,423
44,792,746
-
36,109,615
4,467,121
40,576,736
Non-current loans
-
-
949,277
949,277
-
-
991,831
991,831
Current loans
-
-
1,679,138
1,679,138
-
-
16,168,692
16,168,692
Non-current operating receivables
-
-
7,015,756
7,015,756
-
-
8,228,771
8,228,771
Current operating receivables
(excluding rec. from the state)
-
-
840,186,387
840,186,387
-
-
644,683,856
644,683,856
Contract assets
-
-
13,319,362
13,319,362
-
-
3,338,893
3,338,893
Cash and cash equivalents
100,962,531
-
-
100,962,531
100,226,890
-
-
100,226,890
Total assets with fair value
disclosure
100,962,531
-
863,149,920
964,112,451
100,226,890
-
673,412,043
773,638,933
Total assets
100,962,531
40,346,323
867,596,343
1,008,905,197
100,226,890
36,109,615
677,879,164
814,215,669
The fair value of the financial assets at fair value through other comprehensive income was
assessed using the income capitalisation method and the assumption of a 6.5 percent (2021:
5,0 percent) required rate of return before taxes and a 1.5 percent (2021: 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 925,879 (2021: 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 770,121 (2021: EUR 846,121).




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Fair value of liabilities
31 December 2022
31 December 2021
(in EUR)
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial liabilities
-
(8,837,601)
-
(8,837,601)
-
(2,791,449)
-
(2,791,449)
Commodity derivative
instruments
-
(29,872,456)
-
(29,872,456)
-
(116,341)
-
(116,341)
Total liabilities at fair
value
-
(38,710,057)
-
(38,710,057)
-
(2,907,790)
-
(2,907,790)
Non-current financial
liabilities
-
-
(401,613,002)
(401,613,002)
-
-
(433,812,995)
(433,812,995)
Non-current lease
liabilities
-
-
(101,100,126)
(101,100,126)
-
-
(92,991,633)
(92,991,633)
Current financial
liabilities (excluding
liabilities at fair value)
-
-
(87,818,832)
(87,818,832)
-
-
(63,050,657)
(63,050,657)
Current lease liabilities
-
-
(17,498,969)
(17,498,969)
-
-
(13,768,130)
(13,768,130)
Non-current operating
liabilities (excluding
other liabilities)
-
-
(2,024,000)
(2,024,000)
-
-
(5,024,000)
(5,024,000)
Current operating
liabilities (excluding
liabilities to the state,
employees and
liabilities at fair value)
-
-
(838,214,758)
(838,214,758)
-
-
(560,295,947)
(560,295,947)
Total liabilities with
fair value disclosure
-
-
(1,448,269,687)
(1,448,269,687)
-
-
(1,168,943,362)
(1,168,943,362)
Total liabilities
-
(38,710,057)
(1,448,269,687)
(1,486,979,744)
-
(2,907,790)
(1,168,943,362)
Petrol d.d., Ljubljana
Fair value of assets
31 December 2022
31 December 2021
(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
-
2,525,437
-
2,525,437
-
34,561,544
-
34,561,544
Financial assets at fair value through
other comprehensive income
-
33,376,691
2,117,914
35,494,605
-
1,100,446
2,117,914
3,218,360
Total assets at fair value
-
35,902,128
2,117,914
38,020,042
-
35,661,990
2,117,914
37,779,904
Non-current loans
-
-
59,134,780
59,134,780
-
-
83,299,185
83,299,185
Current loans
-
-
41,343,762
41,343,762
-
-
16,181,049
16,181,049
Non-current operating receivables
-
-
7,007,540
7,007,540
-
-
8,219,107
8,219,107
Current operating receivables
(excluding rec. from the state)
-
-
566,790,889
566,790,889
-
-
385,584,957
385,584,957
Contract assets
-
-
11,722,300
11,722,300
-
-
7,604,649
7,604,649
Cash and cash equivalents
51,203,361
-
-
51,203,361
57,567,397
-
-
57,567,397
Total assets with fair value
disclosure
51,203,361
-
685,999,271
737,202,632
57,567,397
-
500,888,947
558,456,344
Total assets
51,203,361
35,902,128
688,117,185
775,222,674
57,567,397
35,661,990
503,006,861
596,236,248
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 8.0 percent (2021:
5.0 percent) required rate of return before taxes and a 1.5 percent (2021: 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 433,086 (2021: EUR 751,086). A decrease in the
above assumptions by 0.5 percentage point would have caused the fair value to decrease by
EUR 265,914 (2021: EUR 539,914).


(1,171,851,152)


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Fair value of liabilities
31 December 2022
31 December 2021
(in EUR)
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial liabilities
-
(745,579)
-
(745,579)
-
(2,791,449)
-
(2,791,449)
Commodity derivative
instruments
-
(16,007,602)
-
(16,007,602)
-
(116,341)
-
(116,341)
Total liabilities at
fair value
-
(16,753,181)
-
(16,753,181)
-
(2,907,790)
-
(2,907,790)
Non-current financial
liabilities
-
-
(365,355,088)
(365,355,088)
-
-
(404,555,761)
(404,555,761)
Non-current lease
liabilities
-
-
(27,331,350)
(27,331,350)
-
-
(26,735,533)
(26,735,533)
Current financial
liabilities (excluding
liabilities at fair value)
-
-
(225,066,122)
(225,066,122)
-
-
(269,577,972)
(269,577,972)
Current lease
liabilities
-
-
(3,965,318)
(3,965,318)
-
-
(2,717,596)
(2,717,596)
Non-current operating
liabilities (excluding
other liabilities)
-
-
(2,024,000)
(2,024,000)
-
-
(5,024,000)
(5,024,000)
Current operating
liabilities (excluding
liabilities to the state,
employees and
liabilities at fair value)
-
-
(606,024,368)
(606,024,368)
-
-
(359,751,260)
(359,751,260)
Total liabilities with
fair value disclosure
-
-
(1,229,766,246)
(1,229,766,246)
-
-
(1,068,362,122)
(1,068,362,122)
Total liabilities
-
(16,753,181)
(1,229,766,246)
(1,246,519,427)
-
(2,907,790)
(1,068,362,122)
(1,071,269,912)
Changes in Level 3 assets measured at fair value
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
As at 1 January
4,467,121
4,528,987
2,117,914
2,117,914
Disposals
(20,698)
-
-
-
Total profit or losses recognised in the
statement of comprehensive income
-
(61,866)
-
-
As at 31 December
4,446,423
4,467,121
2,117,914
2,117,914


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 2022 is presented in the chapter Share and Ownership
Structure and in the chapter Companies in the Petrol Group of 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.



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Companies in the Petrol Group
The Petrol Group
Petrol d.d.
(in EUR)
2022
2021
2022
2021
Sales revenue:
Subsidiaries
-
-
1,278,693,637
415,270,782
Jointly controlled entities
4,450,996
2,311,547
34,299
18,346
Associates
38,746
29,528
38,746
29,528
Cost of goods sold:
Subsidiaries
-
-
134,397,651
83,445,895
Jointly controlled entities
115,850
142,232
-
-
Costs of materials:
Subsidiaries
-
-
908,547
412,845
Jointly controlled entities
4,645
2,509
-
-
Costs of services:
Subsidiaries
-
-
1,103,313
685,341
Jointly controlled entities
3,977
1,380
-
-
Associates
-
-
-
Impairment of investments:
Subsidiaries
-
-
-
11,193,296
Gain on derivatives:
Subsidiaries
-
-
4,687,243
2,568,846
Loss on derivatives:
Subsidiaries
-
-
1,658,727
934,626
Finance income from interests in Group companies:
Subsidiaries
-
-
723,160
1,823,324
Jointly controlled entities
665,483
300,040
115,217
135,495
Associates
2,662,912
2,283,731
814,437
1,328,236
Finance income from interest:
Subsidiaries
-
-
1,296,282
1,052,504
Jointly controlled entities
1,793
317
1,793
317
Other finance income:
Subsidiaries
-
1,179,726
132,035
68,409
Associates
-
729
-
729
Impairment of goodwill:
Subsidiaries
-
873,366
-
-
Finance expenses for interest:
Subsidiaries
-
-
2,180,053
2,220,406



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The Petrol Group
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Investments in Group companies:
Subsidiaries
-
-
554,032,932
553,970,331
Jointly controlled entities
1,277,748
704,501
233,000
210,000
Associates
56,968,277
55,169,626
26,610,477
26,610,477
Non-current loans:
Subsidiaries
-
-
59,087,634
83,233,789
Current operating receivables:
Subsidiaries
-
-
83,627,973
56,193,756
Jointly controlled entities
1,100,698
684,743
15,433
3,900
Associates
1,568
842
1,487
842
Current loans:
Subsidiaries
-
-
40,046,732
14,741,616
Jointly controlled entities
247,383
-
247,383
-
Contract assets:
Subsidiaries
-
-
5,542,493
5,559,143
Non-current financial liabilities:
Subsidiaries
-
-
21,000,000
21,000,000
Current financial liabilities:
Subsidiaries
-
-
164,958,704
207,418,493
Jointly controlled entities
300,000
300,000
300,000
300,000
Current operating liabilities:
Subsidiaries
-
-
8,515,784
17,420,542
Jointly controlled entities
898,293
-
876,704
-
Contract liabilities
Subsidiaries
-
-
2,527
9,241
Other liabilities
Subsidiaries
-
-
11,321,656
7,523,646
Remuneration of the Supervisory Board and committee members of Petrol d.d.,
Ljubljana
(in EUR)
Function
Basic SB
payment
Attendance
fees
Travel
expenses
Sum
gross
Sum net
Janez Žlak
President of the Supervisory Board
26,250
4,895
453
31,598
22,981
Borut Vrviščar
Deputy President of the Supervisory Board
22,125
4,345
-
26,470
19,252
Aleksander Zupančič
Member of the Supervisory board
18,750
6,611
-
25,361
18,445
Alenka Urnaut
Member of the Supervisory board
20,625
6,336
-
26,961
19,609
Mario Selecky
Member of the Supervisory board
18,750
4,015
-
22,765
17,643
Mladen Kaliterna
Member of the Supervisory board
18,750
6,611
-
25,361
18,445
Alen Mihelčič
Member of the Supervisory board
18,750
4,895
-
23,645
17,197
Robert Ravnikar
Member of the Supervisory board
18,750
6,611
-
25,361
18,445
Marko Šavli
Member of the Supervisory board
18,750
4,895
-
23,645
17,197
Janez Pušnik
External member of the Audit Committee
3,617
1,452
-
5,069
3,687
Sabina Merhar
External member of the Audit Committee
883
440
-
1,323
962
Total:
186,000
51,106
453
237,559
173,862



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Remuneration of the Management Board members of Petrol d.d., Ljubljana
2021
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
2022
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
249,159
93,695
99,000
192,695
-
-
45,570
-
487,424
190,133
Jože Bajuk, Member
of the Management
Board
212,017
79,620
84,000
163,620
-
-
35,836
-
411,473
167,997
Matija Bitenc,
Member of the
Management Board
212,042
79,620
84,000
163,620
-
-
34,889
-
410,551
170,546
Jože Smolič, Member
of the Management
Board
212,000
79,620
84,000
163,620
-
-
26,706
-
402,326
170,304
Zoran Gračner,
Worker Director
128,953
25,742
19,873
45,615
-
-
3,306
-
177,874
97,797
Total:
1,014,171
358,297
370,873
729,170
-
-
146,307
-
1,889,648
796,777
* Travel expenses, costs of accommodation and subsistence allowance are not disclosed as, in 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 2022 by the Company to members of the Workers’ Council stood
at EUR 8,194.
The Company and the Group had no receivables from or liabilities to Supervisory Board
members as at 31 December 2022.
The Company and the Group had no receivables from or liabilities to Management Board
members as at 31 December 2022, except for liabilities arising from December salaries
payable in January 2023.
In 2022, 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, except in the case of Geoplin d.o.o., where two members of the
Management Board of Petrol d.d., Ljubljana, have a management contract.



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Remuneration of the Management Board of the Petrol Group’s subsidiaries in 2022
Variable remuneration - gross***
(in EUR)
Fixed
remuneration -
gross**
Based on
quantitativ
e criteria
Based on
qualitative
criteria
Total
Deferred
remuneration
Termination
payments
Benefits
Clawback
Sum gross
Sum net
Jože Bajuk, Member of the
Management Board
12,077
-
-
-
-
-
-
-
12,077
8,482
Matija Bitenc, Member of the
Management Board
12,077
-
-
-
-
-
-
-
12,077
8,482
Total:
24,154
-
-
-
-
-
-
-
24,154
16,964
** Fixed remuneration gross comprises the basic salary and pay for annual leave.
*** Variable remuneration gross comprises the annual bonus and the performance bonus.

9. Contingent liabilities
Contingent liabilities for guarantees issued
The maximum contingent liabilities of Petrol d.d., Ljubljana for guarantees issued stood at EUR
264,599,582 as at 31 December 2022 (31 December 2021: EUR 217,624,992) and were as
follows:
Petrol d.d.
Petrol d.d.
(in EUR)
31 December
2022
31 December
2021
31 December
2022
31 December
2021
Guarantee issued to:
Value of guarantee issued
Guarantee amount used
Petrol d.o.o.
176,237,013
139,287,883
110,590,551
79,389,205
Vjetroelektrana Ljubač d.o.o.
23,792,130
23,792,130
-
-
Geoplin d.o.o. Ljubljana
21,000,000
21,000,000
-
-
E 3, d.o.o.
15,000,000
15,000,000
3,812,407
4,781,973
Petrol BH Oil Company d.o.o. Sarajevo
5,437,589
4,466,135
166,588
67,104
Petrol LPG d.o.o.
4,700,000
-
-
-
Petrol d.o.o. Beograd
3,999,800
3,500,000
1,023
80,749
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.
3,000,000
420,000
206,682
189,941
Petrol LPG HIB d.o.o.
460,163
-
-
-
Aquasystems d.o.o.
373,318
373,318
373,318
373,318
Total
257,000,013
210,839,466
116,950,569
86,682,290
Bills of exchange issued as security
103,464,125
99,585,169
103,464,125
99,585,169
Other guarantees
7,599,569
6,785,526
7,599,569
6,785,526
Total contingent liabilities for
guarantees issued
368,063,707
317,210,161
228,014,263
193,052,985
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
3,150,872. Interest on overdue amounts arising from the claims stood at EUR 333,858 as at
31 December 2022. The Company’s management estimates that there is a possibility that



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some of these lawsuits will be lost. As a result, the Company set aside long-term provisions.
See the explanation in Note 6.34.
The total value of lawsuits against the Group as defendant and debtor totals EUR 4,233,150.
Interest on overdue amounts arising from the claims stood at EUR 333,858 as at 31 December
2022. The Group’s Management Board 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 the explanation
in Note 6.34.

10. Events after the reporting date
On 13 January 2023, the Government of the Republic of Slovenia adopted the Decree on the
determination of compensation to natural gas suppliers. For supplies regulated by the decrees,
suppliers are entitled to a monthly compensation for the difference between the average
monthly purchase cost and the regulated retail price, taking into account the supplier's cost of
EUR 5/MWh.
There were no events after the reporting date that would significantly affect the presented
financial statements for 2022.



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11. Financial statements of Petrol d.d., Ljubljana by activity in accordance with
the Electricity Supply Act, the Gas Supply Act and the Heat Supply from
Distribution Systems 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 Electricity Supply Act (Official Gazette of the RS No.
172/2021), the Gas Supply Act (Official Gazette of the RS Nos. 204/2021 and 121/2022) and
the Heat Supply from Distribution Systems Act (Official Gazette of the RS No. 44/2022), which
stipulate 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 Electricity Supply Act, the Gas Supply Act and the Heat
Supply from Distribution Systems 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;
the 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.



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The Company also prepares separate financial statements in the municipal and wastewater
treatment segment.
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: the production of electricity, the distribution of
electricity closed distribution system, the distribution of natural gas (as an open and closed
distribution system), heat generation and heat distribution. In addition to these activities, we
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. 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 field of Energy Product and Electricity
Management and are the basis for the division indirect costs and expenses carried under the



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support of Energy Product and Electricity Management 1st coverage for Energy Product and
Electricity Management.
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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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 into 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 the 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 charge is the direct depreciation charge that falls on an individual activity;
an individual activity also accounts for a proportionate share of the indirect depreciation
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.
Finance income is carried under separate financial statements under the other activities of
the Company.
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 compared 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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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 income is carried directly under individual activities:
Long-term deferred income 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 the 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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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” as lower than “Liabilities”, the calculated difference is
carried under other receivables by individual activity.
If we determine the value of Assets” as 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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11.3 Presentation of the financial statements by the 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
supply
Closed
electricity
distribution
system
Municipal
wastewater
and run-off
rainwater
treatment
Other activities
Total
Sales revenue
12,238,569
72,129,853
597,844
4,165,109
2,234,665
5,691,112
665,983,794
3,141,003
2,792,970
6,556,350,601
7,325,325,520
Cost of goods sold
-
(72,284,136)
-
19,555
(1,947)
-
(642,894,401)
-
(1,693)
(6,271,105,008)
(6,986,267,630)
Costs of materials
(2,374,035)
36,969
(386,527)
(2,532,489)
(515,980)
(2,244,733)
(3,144)
(1,407,040)
(463,152)
(18,700,250)
(28,590,381)
Costs of services
(524,611)
(64,150)
(18,608)
(552,895)
(277,928)
(319,614)
(1,232,384)
(201,926)
(802,740)
(132,076,372)
(136,071,228)
Labour costs
(1,454,709)
(109,864)
(79,537)
(1,097,852)
(1,114,740)
(295,863)
(521,211)
(811,542)
(692,144)
(75,951,835)
(82,129,297)
Depreciation and amortisation
(2,832,739)
(3,804)
(29,893)
(565,598)
(622,107)
(389,578)
(33,634)
(707,105)
(501,942)
(40,830,725)
(46,517,125)
Other costs
(1,646,801)
(112)
(5,065)
(189,249)
(58,713)
(155,565)
(483)
(136,052)
(91,995)
(5,798,760)
(8,082,795)
Gain from derivatives
525,064,103
525,064,103
Loss from derivatives
(551,271,270)
(551,271,270)
Other income
67,994
-
-
18,119
38,782
-
-
1,402
256
6,317,372
6,443,925
Other expenses
-
-
-
-
-
-
-
-
-
(30,455)
(30,455)
Operating profit or loss
3,473,668
(295,244)
78,214
(735,300)
(317,968)
2,285,759
21,298,537
(121,260)
239,560
(8,032,599)
17,873,367
Finance income from dividends paid
by subsidiaries, associates and jointly
controlled entities
-
-
-
-
-
-
-
-
-
1,652,814
1,652,814
Finance income
-
-
-
-
-
-
-
-
-
103,318,887
103,318,887
Finance expenses
(374,664)
(29)
(2,845)
(46,821)
(83,700)
(26,647)
(269)
(113,684)
(35,575)
(104,336,768)
(105,021,002)
Net finance expense
(374,664)
(29)
(2,845)
(46,821)
(83,700)
(26,647)
(269)
(113,684)
(35,575)
(1,017,881)
(1,702,115)
Profit before tax
3,099,004
(295,273)
75,369
(782,121)
(401,668)
2,259,112
21,298,268
(234,944)
203,985
(7,397,666)
17,824,066
Tax expense
(588,810)
56,101
(14,320)
148,603
76,317
(429,231)
(4,046,671)
44,639
(38,757)
4,005,298
(786,831)
Deferred tax
-
-
-
-
-
-
-
-
-
2,346,643
2,346,643
Corporate income tax
(588,810)
56,101
(14,320)
148,603
76,317
(429,231)
(4,046,671)
44,639
(38,757)
6,351,941
1,559,812
Net profit for the year
2,510,194
(239,172)
61,049
(633,518)
(325,352)
1,829,880
17,251,598
(190,305)
165,228
(1,045,724)
19,383,878



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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
Closed
electricity
distribution
system
Municipal
wastewater
and run-off
rainwater
treatment
Other
activities
Total
ASSETS
Non-current (long-term) assets
Intangible assets and right to use of leased assets
38,090,099
955
-
1,922,118
5,590,561
405,854
8,504
16,015
3,532,983
131,643,074
181,210,163
Property, plant and equipment
464,545
1,975
286,426
3,494,430
3,061,455
2,782,519
13,530
11,973,627
23,742
344,208,401
366,310,650
Investment property
-
-
-
30,226
-
-
-
-
-
11,460,610
11,490,836
Investments in subsidiaries
-
-
-
-
-
-
-
-
-
554,032,932
554,032,932
Investments in jointly controlled entities
-
-
-
-
-
-
-
-
-
233,000
233,000
Investments in associates
-
-
-
-
-
-
-
-
-
26,610,477
26,610,477
Financial assets at fair value through other comprehensive income
-
-
-
-
-
-
-
-
-
2,117,914
2,117,914
Loans
-
-
-
-
-
-
-
-
-
59,134,780
59,134,780
Operating receivables
-
-
-
-
-
-
-
-
-
7,007,540
7,007,540
Deferred tax assets
-
-
-
-
-
-
-
-
-
3,987,393
3,987,393
38,554,644
2,930
286,426
5,446,774
8,652,016
3,188,373
22,034
11,989,642
3,556,725
1,140,436,121
1,212,135,685
Current assets
Inventories
-
-
-
-
-
-
-
-
-
151,178,363
151,178,363
Contract assets
-
-
-
-
-
-
-
-
-
11,722,300
11,722,300
Loans
-
-
-
-
-
-
-
-
-
41,343,762
41,343,762
Operating receivables
29,251,029
158,702,804
1,042,827
4,699,640
3,895,983
218,662
276,445,953
12,939,494
351,198
79,243,299
566,790,889
Corporate income tax assets
-
-
-
-
-
-
-
-
-
11,880,734
11,880,734
Financial assets at fair value through profit or loss
-
-
-
-
-
-
-
-
-
2,525,437
2,525,437
Financial assets at fair value through other comprehensive income
33,376,691
33,376,691
Prepayments and other assets
-
6,460,495
-
-
-
-
-
-
-
45,007,702
51,468,197
Cash and cash equivalents
-
-
-
-
-
-
-
-
-
51,203,361
51,203,361
29,251,029
165,163,299
1,042,827
4,699,640
3,895,983
218,662
276,445,953
12,939,494
351,198
427,481,649
921,489,734
Total assets
67,805,673
165,166,229
1,329,253
10,146,414
12,547,999
3,407,035
276,467,987
24,929,136
3,907,923
1,567,917,770
2,133,625,419



Graphics
Annual Report of the Petrol Group and Petrol d.d., Ljubljana, 2022 Financial Report 346
Javno
Public

(in EUR)
Natural gas
distribution
system operator
Natural gas
supply
Closed
natural gas
distribution
system
Heat
generation
Heat
distribution
Electricity
production
Electricity
supply
Closed
electricity
distribution
system
Municipal
wastewater
and run-off
rainwater
treatment
Other activities
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 profit reserves
-
-
-
-
-
-
-
-
-
322,180,686
322,180,686
Fair value reserve
-
-
-
-
-
-
-
-
-
42,539,491
42,539,491
Hedging reserve
-
-
-
-
-
-
-
-
-
26,639,848
26,639,848
Retained earnings
-
-
-
-
-
-
-
-
-
9,545,011
9,545,011
Net profit or loss for the year
2,510,194
(239,172)
61,049
(633,518)
(325,352)
1,829,880
17,251,598
(190,305)
165,228
(20,429,602)
-
Total equity
35,598,830
4,899,434
56,101
6,561,730
1,674,674
(3,487,742)
28,840,798
8,827,209
165,228
514,854,709
597,990,971
Non-current liabilities
Provisions for employee post-employment and other long-
term benefits
-
-
-
-
-
-
-
-
-
5,898,618
5,898,618
Other provisions
-
-
-
-
-
-
-
-
-
13,381,922
13,381,922
Long-term deferred revenue
-
-
-
90,809
219,178
136,000
-
702
-
29,134,407
29,581,096
Financial liabilities
15,757,259
1,235
119,169
1,961,094
3,505,769
1,116,122
11,243
4,761,616
1,490,048
336,631,533
365,355,088
Lease liabilities
28,180
304
-
-
-
-
2,707
-
-
27,300,159
27,331,350
Operating liabilities
572,382
-
-
8,662
4,563
-
-
-
-
2,010,775
2,596,382
16,357,821
1,539
119,169
2,060,565
3,729,510
1,252,122
13,950
4,762,318
1,490,048
414,357,414
444,144,456
Current liabilities
Financial liabilities
3,939,315
309
29,792
490,273
876,442
279,030
2,811
1,190,404
372,512
218,630,813
225,811,701
Lease liabilities
-
-
-
-
-
-
-
-
-
3,965,318
3,965,318
Operating liabilities
11,263,079
135,691,714
1,093,001
1,008,339
6,165,804
5,181,910
243,787,204
10,058,209
1,854,189
376,109,832
792,213,281
Commodity derivative instruments
-
-
-
-
-
-
-
-
-
16,007,602
16,007,602
Contract liabilities
76,472
169,709
-
-
362
-
1,687,282
-
133
16,433,059
18,367,017
Other liabilities
570,156
24,403,524
31,190
25,507
101,207
181,715
2,135,942
90,996
25,813
7,559,023
35,125,073
15,849,022
160,265,256
1,153,983
1,524,119
7,143,815
5,642,655
247,613,239
11,339,609
2,252,647
638,705,647
1,091,489,992
Total liabilities
32,206,843
160,266,795
1,273,152
3,584,684
10,873,325
6,894,777
247,627,189
16,101,927
3,742,695
1,053,063,061
1,535,634,448
Total equity and liabilities
67,805,673
165,166,229
1,329,253
10,146,414
12,547,999
3,407,035
276,467,987
24,929,136
3,907,923
1,567,917,770
2,133,625,419