Division of Eesti Energia subsidiary Enefit Power

Division of Eesti Energia AS subsidiary, Enefit Power ASThe Ministry of Finance has approved on the 11th of December the division of Enefit Power AS, the subsidiary of Eesti Energia AS that is responsible of thermal electricity generation and oil production.

Enefit Power AS will go through a division, which will result in a creation of a new subsidiary. The sole ownership of this new subsidiary will belong to Eesti Energia AS. The division involves separation of Enefit Power AS oil and electricity production plants, whereas the former remains in Enefit Power AS and latter will be transferred to a new subsidiary.

The following assets of Enefit Power AS will be transferred to the new subsidiary as part of the division:

1) April 1, 2025, the assets of the Eesti Power Plant and the Balti Power Plant, along with related rights and obligations (book value €25 million), will be transferred.

2) January 1, 2026, the assets of the Auvere Power Plant, along with related rights and obligations (book value €50 million), will be transferred.

Rationale for the intra-group reorganization is to increase effectiveness of both oil and electricity production operations and to separate costs and liabilities. Reorganization and cost separation is also necessary to prepare for the provision of strategic (electricity) reserve power services to Estonian Transmission System Operator.

Danel Freiberg

Head of Treasury and Financial Risk Management

Eesti Energia AS

Lelle 22, 11318 Tallinn

Phone: +372 5594 3838

Email: [email protected]