Preem Holding AB (publ)

Interim Report
First quarter ended 31 March 2023

Preem Holding AB (publ.), corporate ID. no. 559210-7410 (“Preem Holding”) is the parent company of Preem AB
(publ), corporate ID. no. 556072-6977 (“Preem”) and a wholly own subsidiary of Corral Petroleum Holdings AB
(publ), corporate ID. no. 556726-8569.

This report includes condensed consolidated financial information of the Group in which Preem Holding is the
parent company (the “Group”), thus comprising Preem Holding’s consolidated subsidiaries, for the three months
period ending March 31, 2023, and for the comparative period in 2022. This report has not been subject for the
auditor's review.

Key Figures in summary, January-March 2023

• Sales for the first quarter 2023 amounted to SEK 36,845 million compared to SEK 36,831 million for the first
quarter 2022.
• Adjusted EBITDA totaled SEK 3,496 million for the first quarter of 2023 compared to SEK 2,305 million for the
same period last year.
• Net financial items for the first quarter 2023 amounted to negative SEK 298 million compared to negative SEK
550 million for the first quarter 2022.
• Net profit amounted to SEK 1,720 million for the first quarter 2023, compared to SEK 3,728 million in net profit
for the same period 2022.
• Cash flow from operating activities, before changes in working capital, for the first quarter in 2023 amounted to
SEK 2,736 million compared to SEK 5,314 million the same period 2022.
• Total liquidity* amounted to SEK 15,778 million by March 31, 2023, compared to SEK 8,909 million by March 31,
2022.
Jan-Mar Jan-Mar Full-year
MSEK Note2023 2022 2022
Net sales 36,845 36,831 160,548
Adjusted EBITDA** 3,496 2,305 15,326
Inventory gains(+)/losses(-) -563 4,681 2,883
Exchange rate differences -92 -157 -1,013
Net gain/loss on derivatives 58 -1,155 -804
EBITDA 2,898 5,673 16,392
Operating profit (EBIT) 2,500 5,276 14,820
Profit for the period 1,720 3,728 9,085

Cash Flow from operating activities

2,736 5,314 13,318
before changes in working capital
Net leverage ratio*** 0.20 1.69 0.31

* Total liquidity - Cash and cash equivalent and unused committed facilities
**Adjusted EBITDA - defined as EBITDA adjusted for, inventory gains/losses, exchange rate differences when buying and selling oil products, net
gain/loss on oil derivatives valued at fair value
***Net leverage ratio – defined as net financial third-party debt to adjusted EBITDA for the preceding twelve months, calculated on the reporting
date.

2 - Preem Holding AB (publ)

 Preem CEO comments –
Interim Report Q1 2023
STRONG START TO 2023

We had a strong start to 2023 and our journey to transforming

the company continues. We carry on executing our strategy to
become a dominant player in renewable fuels. During the first
quarter 2023, Preem experienced high refining margins and
delivered an overall good performance. Preem Holding’s first
quarter adjusted EBITDA amounted to SEK 3,496 million, (SEK
2,305 million).

During the first quarter of 2023, the international energy markets,

oil & gas included, were affected by continued market volatility.
The volatility was mainly caused by OPEC decisions, refinery
maintenance, strikes and the US and European banking turmoil.
As a result, the crude oil price remained volatile, ranging from
$88/bbl at its peak, to $71/bbl at its lowest during the quarter. Demand for non-Russian crudes and refined
products continued to affect refining margins, although product cracks have come down somewhat compared to
last year’s highs.

Our refineries have performed well during the quarter. However, at the Gothenburg refinery we experienced a
power outage that lasted for one hour. No incidents were reported and most of the units were back in operations 1
day later. The outage was handled professionally and efficiently, solved quickly, and having only minor impact on
the availability. Also, at the Gothenburg refinery a planned catalyst change was done in the Green Hydro Treater
unit during the quarter.

In this extraordinary market environment, our Supply & Refining segment maneuvered skillfully and delivered a
strong result, reported an adjusted EBITDA of SEK 3,557 million for the first quarter 2023, compared to SEK 2,279
million the first quarter 2022. Though, mainly positively impacted by international refining margins, the
strengthening of the US dollar also contributed positively.

Our Marketing & Sales segment reported a weaker result in comparison to the corresponding quarter previous
year, coming in at an EBITDA of SEK 163 million (SEK 313 million). The result was negatively impacted by lower
margins and somewhat decreased volumes in our retail segment.

The Synsat-revamp project at the Lysekil refinery is currently our largest strategic project to enhance our portfolio
of renewable fuels. Once completed, the revamped unit will increase our production of renewable diesel with
approx. 900 000 m3, corresponding to 3 times our current renewable production and approx. 60% of total current
demand for renewable transportation fuel in Sweden. During the quarter we took the decision to defer
commissioning of the unit three months until the end of May 2024. The project has been suffering delays in
engineering, delivery times and disrupted supply chains. As a result, we have experienced delays in bulk materials,
steel structure and equipment.

3 - Preem Holding AB (publ)

Looking ahead, macroeconomic uncertainties and volatility will most likely remain. Short term, we are waiting for
guidance from the Swedish government on the Swedish Greenhouse gas reduction mandate for 2024, which are
estimated to be published during the second quarter. For the remaining quarters of 2023 we have full focus on
flexibility in our sourcing to achieve stable production, high utilization and generating high margins. We are also
doing the final planning for the scheduled turnaround at our Gothenburg refinery. The refinery will be out of
operation for eight weeks, to conduct maintenance work and regulatory inspections, in September and October of
2023.

Total capital expenditure for the full year 2023, including the turnaround, amounts to approx. SEK 4.3 billion.

Moving forward, we are operating from a position of strength and will continue to take important steps increasing
our portfolio of renewable fuels.

Stockholm April 2023

Magnus Heimburg
President and CEO
Preem AB (publ)

4 - Preem Holding AB (publ)

 Financial overview –
first quarter 2023
Sales revenue in the first quarter of 2023 amounted to SEK 36,845 million compared to SEK 36,831 million in the
first quarter of 2022, a small increase of SEK 14 million. Operating profit for the first quarter of 2023 amounted to
SEK 2,500 million, a decrease of SEK 2,776 million, compared to SEK 5,276 million for the same period last year as
last year was heavily affected by the sharp increase in crude and product prices. Even if the operating profit for the
first quarter was significantly lower than last year the result is still very strong compared to historical results. The
quarter was affected by negative price effects on inventory of SEK 563 million and somewhat lower utilization in
Gothenburg, due to change of catalysts at the Green Hydro Treating unit. The weighted refining margin in the first
quarter of 2023 increased, compared to the first quarter of 2022, from $6.7/bbl to $13.2/bbl.

Net financial items for the first quarter of 2023 amounted to negative SEK 298 million, an increase of SEK 252
million compared to negative SEK 550 million for the first quarter of 2022. Exchange rate loss amounted to SEK 53
million for the first quarter of 2023 compared to a loss of SEK 238 million during the same period last year. Total
interest expense for the first quarter of 2023 amounted to negative SEK 227 million compared to negative SEK 282
million for the same period in 2022. The decrease in interest expenses was the result of a decrease in financial debt.

The Group’s cash flow from operating activities after changes in working capital amounted to SEK 2,273 million for
the first quarter 2023 compared to SEK 780 million for the same period last year. The positive cash flow for the
period was mainly driven by positive reversals of working capital and the Group has continued to repay loans and
delever. The leverage ratio ending the first quarter 2023 at 0.20 times (0.31 times at fourth quarter 2022).

On March 31, 2023, the Group’s net financial third party debt amounted to SEK 4,109 million, compared to SEK
10,754 million as of the first quarter of 2022 (see Note 4 for further information).

5 - Preem Holding AB (publ)

 Segments review

The Group divides its business into two segments, Supply & Refining and Marketing & Sales, and key metrics for
both are shown in the tables below.

Supply & Refining

Jan-Mar Jan-Mar Full-year
MSEK 2023 2022 2022
Net Sales 35,348 35,738 154,900
Adjusted EBITDA 3,557 2,279 15,155
Inventory gains(+)/losses(-) -562 4,680 2,883
Exchange rate differences
Net gain/loss on oil derivatives 58 -1,155 -804
EBITDA 3,053 5,804 17,234

Average Brent Dated crude oil, $/bbl 81.2 102.2 101.3

Closing Brent Dated crude oil, $/bbl 79.1 110.1 81.3
Weighted refining margin, $/bbl 13.2 6.7 13.9
Refining margin LYR 12.7 6.1 12.8
Refining margin GOR 14.2 7.6 16
Feedstock throughput, 000 m3 5,105 5,289 19,390
Utilization rate LYR, % 77.5 81.8 64.5
Utilization rate GOR, % 73.1 84.5 80.7
Average exchange rate SEK/USD 10.4 9.3 10.1
Closing exchange rate SEK/USD 10.4 9.3 10.5

Total sales revenue for Supply & Refining amounted to SEK 35,348 million for the first quarter of 2023, a decrease
with SEK 390 million compared to the same period last year. First quarter 2023 was affected by strong demand for
non-Russian products, high inflation and OPEC+ decreasing their production. The adjusted EBITDA for the quarter
amounted to SEK 3,557 million, compared to SEK 2,279 million in the first quarter 2022, an increase of SEK 1,278
million. Our refining margins remained strong in the first quarter and resulted in a weighted margin of $13,2/bbl,
an increase with $6,5/bbl compared to last year. The strengthening of the US dollar resulted in a positive FX effect
of SEK 459 million for the first quarter compared to the same period last year. Fixed expenses increased with
approximately 63 MSEK mainly driven by higher maintenance cost at the refineries and insurance costs.

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Marketing & Sales

Jan-Mar Jan-Mar Full-year

MSEK 2023 2022 2022
Net sales 9,217 8,002 41,647
EBITDA 163 313 1,052
Operating profit 106 246 807

Jan-Mar Jan-Mar Full-year

Sales by category (000 m3) 2023 2022 2022
Diesel 594 616 2,608
Gasoline 162 119 548
Other products 40 48 157

Net sales for the Marketing & Sales segment amounted to SEK 9,217 million for the first quarter of 2023 compared
to SEK 8,002 million for the same period last year, mainly driven by increased prices. Total sales volume increased
by 2%, primarily in the B2B segment due to increased demand among our resellers. Marketing & Sales reported an
EBITDA of SEK 163 million for the first quarter 2023 compared to SEK 313 million for the first quarter of 2022, a
decrease of SEK 150 million. The extraordinary market situation during the first quarter 2022 resulted in positive
inventory price effects within the retail segment. First quarter 2022 was also positively impacted by a reversal of a
bad debt provision.

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 Financial statements

Consolidated income statement

Jan-Mar Jan-Mar Full year

Amounts in SEK millions Note 2023 2022 2022
Net sales 3 36,845 36,831 160,548

Cost of goods sold -34,068 -31,334 -144,369

Gross profit 2,777 5,497 16,179

Selling expenses -231 -181 -862

Administrative expenses -277 -262 -1,042
Share of net profit of associates* 15 43 94
Other operating income 215 178 460
Other operating expenses -0 -1 -9
Operating profit 3 2,500 5,276 14,820
Financial income 14 1 23
Financial expenses -312 -551 -3,243
Net financial items -298 -550 -3,220

Profit before income tax 2,202 4,726 11,600

Income tax -482 -998 -2,515

Profit for the period 1,720 3,728 9,085

Profit for the period
Parent company shareholders 1,720 3,728 9,085
Non-controlling interests 0 0 -
1,720 3,728 9,085

Statement of other comprehensive income

Amounts in SEK millions

Profit for the period 1,720 3,728 9,085

Items that may be reclassified to the income statement:
Translation difference -28 16 11
Changes in fair value hedges -392 - 797
Income tax relating to hedges 81 - -164

Items that will not be reclassified to the income statement:

Actuarial gains/losses on defined benefit pension plans -13 45 180
Tax attributable to the item above 3 -9 -37

Other -1 -0 -1
Total other comprehensive income for the period, net of tax -351 51 786
Total comprehensive income for the period 1,369 3,779 9,871

Total comprehensive income for the period attributable to:

Parent Company shareholders 1,369 3,779 9,871
Non-controlling interests 0 0 0
1,369 3,779 9,871

8 - Preem Holding AB (publ)

Consolidated Statement of Financial Position

31 Mar 31 Mar Full Year

Amounts in SEK million Note 2023 2022 2022
ASSETS
NON-CURRENT ASSETS
Intangible assets 622 706 670
Tangible assts 12,944 11,540 12,537
Participations in associates 409 364 394
Non-current derivatives 5 216 - 411
Other non-current receivables 129 87 130
Total non-current assets 14,321 12,698 14,143

CURRENT ASSETS
Inventories 17,389 19,579 19,281
Trade receivables 5 4,919 7,514 6,129
Derivatives 5 283 630 444
Receivables from Parent Company 5 55 55 55
Other receivables 5 1,270 1,551 1,335
Prepaid expenses and accrued income 2,525 2,237 2,692
26,441 31,566 29,936
Cash and cash equivalents 5 3,085 2,464 3,484
Total current assets 29,526 34,029 33,420
TOTAL ASSETS 43,847 46,727 47,562

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Consolidated Statement of Financial Position

31 Mar 31 Mar Full year

Amount in SEK million Note 2023 2022 2022
Equity attributable to Parent Company shareholders
Share Capital 1 1 1

Reserves 304 16 644

Profit brought forward including profit for the period 19,345 11,825 17,634
19,650 11,840 18,280
Non- controlling interests 0 0 0
Total equity 19,650 11,840 18,280

LIABILITIES
Non-current liabilities

Pension obligations 168 274 156

Deferred tax liabilities 1,621 806 1,716
Other Provisions 156 825 158
Borrowings 4,5 6,495 490 7,956
8,440 2,395 9,985
Current liabilities
Other current provisions 140 - 140
Borrowings 5 233 12,560 639
Prepayments from customers 630 587 626
Trade payables 5 4,624 5,790 7,213
Current tax liabilities 2,079 1,810 2,149
Derivatives 5 - 47 3
Other liabilities 5 2,642 2,763 2,498
Accrued expenses and deferred income 5,409 8,935 6,030
15,757 32,492 19,298
Total liabilities 24,197 34,887 29,282
TOTAL EQUITY AND LIABILITIES 43,847 46,727 47,562

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Consolidated statement of Changes in equity

Attributable to Parent Company shareholder

Profit Non-
Share brought controlling Total
Amounts in SEK million capital Reserves forward Total interests equity
Opening equity 2022-01-01 0 0 6,984 6,984 0 6,984
Profit for the period - - 3,728 3,728 - 3,728
Other comprehensive income - 16 35 51 - 51
Total comprehensive income for the period 0 16 3,763 3,779 0 3,779
Increase of share capital 1) 0 - 0 0 - 0
Shareholder contribution - - 1,077 1,077 - 1,077
Closing equity 2022-03-31 1 16 11,825 11,840 0 11,840

Opening equity 2023-01-01 1 644 17,635 18,280 0 18,280

Profit for the period - - 1,720 1,720 - 1,720
Other comprehensive income - -340 -11 -351 - -351
Total comprehensive income for the period - -340 1,709 1,369 0 1,369
Closing equity 2023-03-31 1 304 19,345 19,650 0 19,650

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Consolidated cash flow statement

Jan-Mar Jan-Mar Ful Year

Amounts in SEK million Note 2023 2022 2022
Operating activities
Profit/loss before taxes 2,202 4,726 11,600
Adjustments for items not included in cash flow:
Depreciation 398 397 1,571
Unrealized Currency effects and derivatives 30 17 748
Other 106 175 -601
Cash flow from operating activities 2,736 5,314 13,318
before changes in working capital
Taxes paid -561 -16 -136
2,175 5,298 13,182
Decrease (+)/Increase (-) in inventories 1,869 -6,304 -6,039
Decrease (+)/Increase (-) in operating receivables 1,266 -3,841 -1,541
Decrease (-)/Increase (+) in operating liabilities -3,037 5,627 3,759
Cash flow used in/from operating activities 2,273 780 9,361
Investing activities
Capital expenditure of intangible assets - -0 -123
Capital expenditure of tangible assets -739 -218 -1,849
Decrease(+)/Increase(-) in financial assets - - -3
Cash flow used in investing activities -739 -218 -1,976
Financing activities
New loans 1,356 379 11,573
Borrowing costs -23 - -591
Repayment of loans -3,241 -726 -17,028
Amortization of lease debt -68 -47 -204
Cash flow from/used in financing activities -1,976 -394 -6,250
CASH FLOW FOR THE PERIOD -442 168 1,135
Opening cash and cash equivalents 3,484 2,302 2,302
Effect of exchange rate fluctuations on cash
and cash equivalents 43 -6 47
Cash and cash equivalents at the end of the
period 3,085 2,464 3,484

12 - Preem Holding AB (publ)

Income statement for the Parent Company

Jan-Mar Jan-Mar Full Year

Amounts in SEK million Note 2023 2022 2022
Administrative expenses -1 0 -18
Operating profit -1 0 -18
Profit from participations in Group companies 893 132 2,895
Financial income 6 - 1
Financial expenses -187 -301 -1,398
Net financial items 712 -170 1,498
Profit/loss before income tax 711 -170 1,481
Income tax 10 24 -23
Profit/loss for the period* 721 -146 1,458

*) Comprehensive income equals net earnings/loss for the period

Balance Sheet for the Parent Company

13 - Preem Holding AB (publ)

 Notes

Note 1. Basis of preparation and accounting principles

These interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting" as
adopted by the European Union (EU) and RFR1 "Supplementary accounting rules for groups".

These consolidated interim financial statements should be read together with the annual consolidated financial
statements for the year ended December 31, 2022.

The annual consolidated financial statements for the Group are prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union (EU). The interim financial statements have been
prepared applying the accounting policies and presentation that were applied in the preparation of the Group's
consolidated financial statements for the year ended December 31, 2022. There are no amendments of IFRS during
2023 that are estimated to have a material impact on the result and financial position of the Company.

The Swedish Annual Accounts Act and RFR 2 "Accounting for legal entities" have been applied for the Parent
Company. The financial statements are presented in Swedish krona (SEK), which is the Parent Company´s
functional currency.

Unless otherwise stated, all figures are rounded to the nearest million. Due to the rounding of figures in the tables
to the nearest SEK million the total amount is not exactly equal to the sum of all components in some cases.

Note 2. Risk factors

For information on risks relating to our business and capital structure, please refer to Note 2 in Preem AB’s Annual
Report for 2022 as well as the Offering Memorandum, dated 14 June 2022, relating to Preem Holding AB (publ) –
€340,000,000, 12%, Senior Notes due in 2027.

14 - Preem Holding AB (publ)

Note 3. Segment information

Amounts in SEK million Jan-Mar Jan-Mar Full-year

Net Sales 2023 2022 2022
Supply & Refining 35,350 35,738 154,900
Marketing & Sales 9,217 8,002 41,647
Sales between segments -7,722 -6,909 -35,999
Total external net sales 36,845 36,831 160,548

Operating profit
Supply & Refining 2,732 5,497 15,999
Marketing & Sales 106 246 807
Total operating profit 2,838 5,744 16,806
Exchange rate differences -92 -157 -1,013
Other expenses -246 -310 -973
Total Operating profit 2,500 5,276 14,820

of which depreciation by segment

Supply & Refining -320 -307 -1,235
Marketing & Sales -57 -66 -246
Total depreciation by segment -377 -373 -1,481

Note 4. Financial Debt Breakdown

31 Mar 31 Mar 31 Dec
Amounts in SEK million 2023 2022 2022
SEK Loans 1,929 128 1,433
Syndicated bankloans USD 1,139 7,597 3,131
Leasing liabilities 620 446 680
Deposits 55 45 52
Transaction costs -260 -53 -291
Total Financial Debt Preem Group 3,483 8,163 5,005
Term loan USD - 5,003 -
Senior Note EUR 3,450 - 3,784
Transaction costs -206 -115 -194
Total Financial debt Preem Holding AB (publ) 3,245 4,887 3,590
Total Financial debt Preem Holding Group 7,194 13,218 9,080
Net of transaction costs 6,728 13,050 8,595

Note 5. Financial instruments

Jan-Mar Jan-Mar Full-year

Net debt 2023 2022 2022
Financial debt 7,194 13,218 9,080
Less cash and cash equivalents -3,085 -2,464 -3,484
Net debt* 4,109 10,754 5,596
Total equity 19,650 11,840 18,280
Debt/equity ratio 0.21 0.91 0.31

*Net debt exkl udes tra ns a cti on cos ts

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Amounts in SEK million

Assets Assets measured Financial

measured at fair at fair value assets
value through through other measured at
profit/loss for comprehensive amortized Carrying
Assets in the balance sheet as of March 31, 2023 the period income cost amount Fair value
Other shares and participations 0 - - 0 0
Derivatives 94 405 - 499 499
Receivables from related parties - - 55 55 55
Trade receivables and other receivables - - 6,189 6,189 6,189
Cash and cash equivalents - - 3,085 3,085 3,085
94 405 9,329 9,828 9,828
Liabilities at fair
Liabilities at fair value through
value through other
profit/loss for comprehensive Other Carrying
Liabilities in the balance sheet as of March 31, 2023 the period income liabilities amount Fair value
Senior Notes EUR - - 3,450 3,450 3,657
Liabilities to credit institutions - - 3,068 3,068 3,068
Leasing liabilities - - 620 620 620
Other interest-bearing liabilities - - 55 55 55
Derivatives - - - - -
Other liabilities - - 7,267 7,267 7,267
- - 14,461 14,461 14,668

Note 6. Pledged assets and Contingent liabilities

For information on disclosures concerning contingent liabilities, please see Note 30 in Preem Holding’s Annual
Report for 2022. There are no significant changes in contingent liabilities during Q1 2023 compared to FY 2022.

The balance of pledged accounts receivables has increased to SEK 6,100 (5,688) million. Pledged shares in
subsidiaries now have a value of SEK 22,752 (22,106) million.

Pledged assets amounts to SEK 42,901 (41,951) million.

Note 7. Related party transactions

For information related to "Related party transactions", please see note 33 in Preem Holding’s Annual Report for
2022. There have not been any significant changes in Q1 2023 compared to FY 2022.

Note 8. Subsequent events

Nothing to report.

16 - Preem Holding AB (publ)

 Stockholm, April 27, 2023
The Board of Directors

Preem Holding AB (publ)

Further information

Klas Lindgren Dansbo

Group Treasurer
Tel: + 46-10-450 10 00
Email: [email protected]
Preem AB, 112 80 Stockholm Besöksadress: Warfvinges väg 45 Tfn: +46 (0)10 450 10 00 preem.se