COVID-19 pandemic update

5. 6. 2020

COVID-19 pandemic has significant impact on countries in which EPH group (the Group) operates. Economies of these countries are influenced in particular by restrictions introduced by Government authorities and also by voluntary temporary shutdown of some factories or voluntary limitation of business operations.

The Group´s management has been critically monitoring and evaluating the impacts with having implemented relevant measures with main focus to guarantee health and safety of the Group’s employees and to safeguard the continuity of the essential energy security services in the countries where the Group operates. The Group has been implementing specific protective measures such as extensive home office program and special regime for employees working in critical infrastructure. The Group continues to regularly monitor the risks and take measures as the situation still remains unclear and volatile.

Despite temporary short-term operational limitations, the Group believes its medium- to long-term market position stays resilient, primarily as the Group operates the critical infrastructure in gas and power distribution, gas transportation and storage and power generation, and major part of by it operated assets are regulated and/or long-term contracted with high quality counterparties. At the same time the Group maintains robust counterparty and liquidity risk management system which underpin the Group’s financial stability.

The management cannot however preclude the possibility that extended lockdown periods, an escalation in the severity of measures imposed by Government authorities, or a consequential adverse impact of such measures on the economic environment where the Group operates will not have an adverse effect on the Group, and its financial position and operating results, in the medium and longer term. The Group continues to monitor the situation closely and will respond to mitigate the impact of such events and circumstances as they occur.