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Production cuts in OPEC+ countries and nonOPEC countries increasing their production volumes had the biggest impact on the world market. The impact of the US presidential election put downward pressure on fuel prices. Overall, world fuel prices fell in 2024.

One of the most influential decisions came from Sweden, which lowered the bioobligation requirement, leading to an increase in the supply of HVO and a decrease in the price of HVO. However, this had a rather short-term effect.

Alexela continues to buy liquid fuels from its European suppliers. Prior to the imposition of sanctions, we mainly supplied diesel and petrol from the Orlen refinery in Mažeikiai, Lithuania.

Domestically, the decline in consumer confidence was seen in the form of a small fall in consumption. Similarly, the retail market for liquid fuels grew by 1.6 percent, while the wholesale market fell by 1.1 percent. The Estonian fuel market is closely linked to world market prices, which also had an impact on petrol stations, reducing consumption growth.

Market uncertainty and minimal growth fuelled competition in the local market. Market players focused on short-term offers to attract customers. Alexela concentrated on providing its customers with innovative energy solutions that combined fuel and electricity offers. Through hybrid offers and cross-selling, we were able to increase the share of customers using energy solutions to 27 percent.

The energy crisis-era distrust of exchange packages persisted in 2024, as customers put most trust in fixed-price packages. For example, Alexela's Pingevaba package, which offers a one-month fixed price, remained popular. Despite the challenging market conditions, Alexela was able to offer a competitive price and maintain its market share as the clear second largest electricity seller in Estonia. In 2024, Alexela's market share in electricity sales increased to 19.7%.

As an energy company with a diverse product portfolio, Alexela offers a range of permanent and fixed-term discounts, providing more value to customers who consume several services at the same time. Starting in autumn, Alexela's electricity customers received a discount of -15 cents per litre on fuel at petrol stations.

Alexela has entered into a number of longterm power purchase agreements with renewable energy producers to bring renewable electricity to the market, which can be offered to customers at fixed prices.

In the area of private charging services, we partnered with domestic charger manufacturer VOOL to offer easier and better designed chargers. Customers can benefit from smart charging, where the charger schedules its activity according to the electricity price. In addition, we created a guide for apartement cooperatives on how to build and use charging infrastructure and expanded our cooperation with real estate developers.

The number of Alexela public charging points increased by 1.5 times in 2024 compared to 2023, reaching over 300 outlets in almost 200 different locations across Estonia.

We continued to replace the Elmo network chargers at Alexela service stations with new fast chargers. In addition, we installed charging points en-route and at destinations, such as hotels, spas, sports centres, shopping malls and other leisure facilities. We also set up charging points in densely populated residential areas where it is difficult to create private charging points - public charging points for all residents in the area, which can be quickly and conveniently added as needed.

We paid more attention to service development and quality improvement. In 2024, we introduced a dynamic pricing model for public chargers, which allows for more flexible charging, taking into account the specificities of the charging point and the consumption habits of users.

The increase in the number of electric cars will lead to a greater demand for a larger number of service stations offering additional services. We started developing a new interior design for café-stores to offer better service and maintain customer loyalty. The business process in the café-stores is in constant evolution to meet customer needs and to achieve our business objectives.

We are constantly investing in product development and service skills to grow our customer base and build loyalty. The fast food category grew rapidly in 2024 and we will continue to differentiate our concepts in 2025.

Caring for the environment is important to us. We will continue to promote reusable coffee cups , whose share in the hot beverage category increased to 14%, a four percentage point increase compared to 2023. We will also focus on improving the quality of coffee, using Arabica coffee beans roasted specifically for Alexela.

At the end of 2022, we launched the My Alexela customer programme, where in addition to discounts on fuels , electricity, and goods, customers can earn digital badges with a cash value. These can be used to pay for services such as electricity and gas.

My Alexela offers convenience, benefiits, and new opportunities for loyal customers. It combines everyday energy products - such as electricity, natural gas, vehicle fuels - with products in café-shops. Customers can enjoy discounts, trailer rental, and much more. Alexela is the only company in Estonia to offer such a wide range of energy services.

The focus was on raising awareness of the Täkupoiss roadside restaurant, which offers top chef quality food, fast and friendly service, local ingredients and avoidance of semifinished products. All designed to address the needs and energise the motorist.

In 2024, we will focus on growing our loyal customer base by organising events and special offers in the restaurant. My Alexela customers accounted for 62% of restaurant purchases.

A bigger challenge was the construction of the Via Baltica Sauga roundabout , which closed the entrance to Täkupoiss from July to the fourth week of September. In order to maintain the flow of guests, we responded with a promotional campaign where all food in the restaurant was 50% off. This allowed us to showcase the quality of the Täkupoiss restaurant and grow our loyal customer base.

In collaboration with renowned pastry chef Olga Kaju, we created a menu of pastry products inspired by Estonian berries, focusing on quality and innovation.

We invested in the development of our service staff, which resulted in a very high rating from guests for the service: an NPS of 71 in 2024 and an average Google Review score of 4.7.

In the community, we participated in the following events and partnerships:

• Lottemaa Theme park
• Beach Grind Festival
• Opening of the moto season
• Pärnu Restaurant Week
• Pernova Father's Day

Technological investments were also made in a number of important projects. We contributed to the development of emobility by developing new technological solutions. We launched an updated and user-friendly Alexela app, which allows customers to manage their energy bills, contracts, payments, and services more conveniently. The number of daily users of this app has doubled compared to last year. 220 Energia customers were also migrated to the Alexela platform, providing a smoother and more integrated customer experience.

The role of artificial intelligence in improving the customer experience and optimising internal processes has increased. We have invested in and introduced a range of AI-based tools to help automate routine tasks and refine datadriven decisions. We are also expanding the use of AI in customer service to provide a faster and more personalised service.

We also launched the Alexela Smart Electricity solution, which enables customers to manage their electricity generation and consumption in a smart way. This system helps to optimise energy costs and contribute to a more sustainable use of energy by giving customers greater control over their energy use.

We also launched a programme to upgrade our core information systems to bring our technological capabilities to a new level. This will ensure more flexible service delivery and streamline internal business processes. Digitalisation will create the basis for further innovation, keeping Alexela competitive in a rapidly evolving energy economy.

We will continue to develop technology to be at the forefront of innovation, creating long-term value, saving time, and helping to shape a more sustainable future with our customers.

Smart Electricity is a virtual power plant that predicts the next day's consumption based on individual history and monitors Nord Pool's exchange price. The service automatically performs beneficial transactions by managing electricity generation based on customer consumption, generation forecast, electricity price, and network charges to buy electricity at a lower price and sell it at a higher price.

The development of the service continued throughout the year. In March the service was launched for private customers, in April it was extended to business customers, and from May the service was also available to owners of solar panels who do not have a energy storage solution. Support for Deye inverters was added in June and for Pixii storage devices in August.

By the end of the year, a triple-digit number of customers had joined Smart Electricity. The service currently supports Huawei, Deye, and Pixii devices, but in 2025 we plan to extend compatibility to devices from other inverter manufacturers. The team will continue to evolve the service to offer even more customers a convenient and smart energy solution.

The fleet of AS Alexela Motors includes 27 vehicles, with an increasing number of alternative fuel vehicles. In 2024, eight new vehicles were acquired, including three Scania semi-trailers running on biomethane/CNG and a new Volvo semitrailer running on diesel and LNG/bio-LNG.

The main transport routes are related to the servicing of Estonian domestic service stations and the delivery of products, as well as LPG and LNG supplies from Finland and Latvia. In the cylinder gas service, the focus was on servicing Alexela's smart lockers, for which two Renault Master vans with special solutions were acquired.

In the year 2024, AS Alexela Motors' trucks covered 2.35 million kilometres, which is 300 thousand kilometres more than in the previous year. The volume of liquid fuels transported increased from 209,6 million litres to 214,7 million litres. Alexela Motors employs a total of 46 people, the majority of whom are drivers.

In 2024, we significantly increased our private customer base, ending the year with a 30% increase in the number of customers compared to the previous year. We also invested in upgrading our IT and billing systems, creating a strong platform for launching new services and growing our customer base.

In 2024, the Hamina LNG Terminal celebrated its second anniversary. During 2024, the terminal delivered 23 LNG vessels, all from outside Russia. A total of 300 GWh of regasified gas was injected into the Finnish transmission network and the Hamina region distribution network, while 1 866 tanker trailers were loaded with LNG, 53% more than in the previous year. The largest customer and user of the Hamina LNG Terminal is AS Alexela.

In 2024, the terminal launched two important activities for the future, which Rohe Solutions Oy played a role in initiating. A ship bunkering service was launched, with five ships using LNG as fuel being bunkered in the terminal. A bio-LNG project was also launched, which will enable the output of the connected biogas plants to be taken off the terminal as bio-LNG.

In 2024, additional post-digesters were completed at the Oisu and Tartu plants , which increased biomethane production by about 20%. All three of biomethane OÜ Eesti biogaas biomethane plants are now built according to the same model, consisting of two digesters and two secondary post-digesters.

Increasing the efficiency of processing is largely the result of the experience and knowledge of the team OÜ Eesti biogaas. By optimising production, more biomethane can be produced throughout the year using animal manure, biomass, and food industry residues. This is an important environmental step, as it helps to harness methane that would otherwise be released into the atmosphere. Most of the biomethane produced is used as a transport fuel.

The plan is to continue biomethane production in 2025 in three existing production plants.

Last year, the Paldiski storage project was further developed. The project reached the stage where supply contracts had to be signed with technology suppliers in the second half of the year in order to move forward. Although the aim was to reach a final investment decision (FID) by the end of summer 2024, this was not achieved. Large energy projects require a model of cooperation with the state, which has been delayed.

Under the renewed action plan, the project is planned to be finalised by: completing all the engineering and design; signing early involvement agreements with technology partners; and securing funding. FID is planned by 2027. Agreement on a cooperation model with the government is expected to be reached in 2025.

In 2024, KPMG carried out an analysis of the socio-economic benefits of the Paldiski pumped-storage hydropower facility, which showed that the economic impact of the project on the Estonian economy would be €54 million per year during the construction period and €253 million per year on average during the operational period.