Scatec ASA

Earnings Release • Nov 1, 2024

Q3 2024 Strong financial performance

CEO, Terje Pilskog & CFO, Hans Jakob Hegge

Disclaimer

The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ('relevant persons'). Any person who is not a relevant person should not rely, act or make assessment on the basis of this presentation or anything included therein.

The following presentation may include information related to investments made and key commercial terms thereof, including future returns. Such information cannot be relied upon as a guide to the future performance of such investments. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Scatec ASA or any company within the Scatec Group. This presentation contains statements regarding the future in connection with the Scatec Group's growth initiatives, profit figures, outlook, strategies and objectives as well as forward looking statements and any such information or forward-looking statements regarding the future and/or the Scatec Group's expectations are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements.

Alternative performance measures (APM) used in this presentation are described and presented in the third quarter 2024 report for the group.

3

Q3 2024 Key highlights

Solid proportionate revenues and EBITDA increase - revenues of NOK 2.4 billion and EBITDA of NOK 1.5 billion

D&C margin increase after strong construction progress

• 12% underlying D&C-margin

Building partnership with Toyota Tsusho Group in Tunisia - Started construction of 120 MW solar

Growing our position in Egypt

• Signed 25-year PPA for 1.1 GW solar + 100MW/200MWh storage

Divesting non-core – signing agreements to sell

• African Hydropower assets to TotalEnergies
• Wind plant in Vietnam to SUSI partners
• Parts of solar power plants in REIPP 1 and 2 in South Africa to Stanlib

Key figures - proportionate

Figures in brackets are same quarter last year

Total revenues and other income

Power production

1,254

GWh

2,416 NOK million (2,369) (1,047)

Total EBITDA Total EBIT

1,520 NOK million (893) (584)

1,129 NOK million

Power Production Production increase of 24% adjusted for divestments

Power Production, GWh EBITDA NOKm

Philippines EBITDA of NOK 382 million driven by Ancillary Services

Net Revenue, NOK million Power Production, GWh

Ancillary Services Spot & Contract

EBITDA, NOK million Prices, PHP/kWh

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• Ancillary service revenues of NOK 217 million driven by:
  • Contribution from long-term ancillary services contracts
  • Reopening of the reserves market
  • Recognition of NOK 60 million from Q1'24

• EBITDA increased by 79% to NOK 382 million including

Construction Strong progress with 12% underlying D&C-margin - 103 MW Mogobe BESS started construction

Q3'24 financial performance

NOK 631m D&C revenues

12% Gross D&C margin

NOK 3.4bn remaining EPC contract value

NOK 515m* total equity investment

We have 2.2 GW of near-term growth capacity and a 10.1 GW pipeline for further expansion

Maturing pipeline

Financial review

Hans Jakob Hegge, CFO

Q3'24 Proportionate Financials Power Production revenues of NOK 1.8 billion

• 90% EBITDA increase driven by divestment in South Africa and the Philippines
• Strong D&C performance with gross margin of 12%
• Continued cost discipline reflected in Corporate EBITDA

As of 1 January 2024, Scatec's revenues and operating expenses from the Service segment are reported as part of the Power Production segment.

Q3'24 Consolidated Financials Power sales increased by 44% to 1.2 billion

Revenues, NOK million

EBITDA, NOK million

• NOK 1.5 billion accounting gain from sale of assets in South Africa
• Net income from JVs of NOK 315 million
• Underlying EBITDA increase of NOK 482 million excluding net gain for sale of assets

Net income from JVs and associated companies

Proportionate Net interest-bearing debt of NOK 22.1 billion

NOK billion

Non-recourse project debt - in operation Corporate debt ¹¹

• Drawdown of new debt related to projects under construction
• Net project debt reduced to NOK 13 billion due to amortisations
• Net corporate debt down to NOK 8.0 billion due to amortisation and FX

Free cash on Group level Total available liquidity of NOK 2.2 billion

Q3'24 movements of the Group's free cash, NOK million

Outlook

Power Production

• FY'24 Power Production estimate: 4,200-4,300 GWh
• FY'24 EBITDA estimate: NOK 4,150-4,350 million
• Q4'24 Power production estimate: 1,100-1,200 GWh
• Q4'24 Philippines EBITDA estimate: NOK 270-370 million

Development & Construction

• Remaining D&C contract value: NOK 3.4 billion
• Est. D&C gross margin for projects under construction and backlog: 10-12%

Corporate

• FY'24 EBITDA estimate: NOK -120 to -130 million

2027 strategy roadmap Attractive growth and strengthening balance sheet

Improving the future for communities and individuals

We have sharpened our strategic roadmap towards 2027 Continued self-funded strategy with increased focus on solar + BESS in four core markets

Profitable growth	• Target 750 million equity investments annually Estimated ~15% project equity IRR from operations and ~30%* integrated project equity IRR •
Markets & technologies	Focus on Solar PV & BESS near-term and build onshore wind portfolio over time • Build scale in four core markets (Brazil, Egypt, South Africa and the Philippines) • Opportunistic approach to other markets and technologies (Hydro & H ) • 2
Funding	NOK 2.2 billion available liquidity end of Q3'24 • Solid D&C margins levered by more capital efficient model • Cash flow from operating assets • Divestment proceeds of at least NOK 4 billion towards 2027 from sale of non-core • assets**
Deleverage	~75% of divestment proceeds allocated to corporate debt repayments •

…supported by strengthened market fundamentals

has ~1.8 GW of solar under construction & in backlog and additional ~6.2 GW in pipeline

…and energy storage system

has 259 MW of BESS under construction and in backlog in South Africa, Egypt & the Philippines

3-month Term US SOFR

Interest rates expected to decrease…

…expected to contribute to falling LCOEs**

focusing on renewables, the most attractive source of energy from an LCOE perspective

*Quoted average China turnkey energy storage system prices in April 2024, **South Africa forecast, battery storage forecast is US.

We have selected four core markets with attractive growth outlook

Opportunistic approach to markets outside the four core markets

Our secured projects mainly in these markets represent a 46% capacity increase to 6.2 GW*

*Before any further divestments of operating assets

The 2.2 GW are in the sweet spot of our strategic growth ambitions

Delivering profitable growth in core markets…

…generating average 20-year contracted cash flows…

	96%
Long-term offtake	Merchant	4%

• …and substantial D&C gross margins covering ~70% of Scatec's target equity investments
• \$1.9 billion total capex
• \$1.5 billion non-recourse debt & grants
• \$1.0 billion D&C revenues
• \$110 million D&C gross profit
• \$155 million Scatec equity investment*

556 MW of Solar + BESS already under construction

Est. D&C revenues of USD 457 million with a gross margin of 10-12%

Projects under construction*

		Grootfontein, 273 MW Solar Ownership: 51%	Capex	Leverage	Scatec target equity	D&C revenues
		Offtake: 20-year PPA (ZAR) Financing structure: Equity last	\$255m	89%	\$14m	\$198m
		Tunisia, 120 MW Solar Ownership: 51%	Capex	Leverage***	Scatec target equity	D&C revenues
		Offtake: 20+10-year PPA (EUR) Financing structure: Equity last	\$88m	85%	\$7m	\$74m
		Botswana phase 1, 60 MW Solar Ownership: 100% (51% target)**	Capex	Leverage	Scatec equity pre farm-down	D&C revenues
		Offtake: 25-year PPA (BWP/USD) Financing structure: Equity last	\$51m	62%	\$20m	\$44m
		Mogobe, 103 MW BESS Ownership: 51%	Capex	Leverage	Scatec target equity	D&C revenues
		Offtake: 15-year PPA (ZAR) Financing structure: Equity last	\$170m	91%	\$8m	\$141m

21 *Equity last financing structures can be achieved through equity last loan agreements, equity L/Cs or Equity Bridge Loans **Expected farm-down of Botswana post COD ***Including Japanese funding

…And 1.6 GW in backlog

Est. D&C revenues of USD 680 million with a gross margin of 10-12% and long-term offtakes secured

Projects in backlog

	Egypt, 1.1 GW Solar + 100 MW BESS Ownership: 100% (26% target)	Capex	Leverage	Scatec target equity	D&C revenues
	Offtake: 25-year PPA (USD) Financing structure: Equity last	\$604m	80%	\$30m	\$530m
H	Egypt, 100 MW H + 260 MW solar & wind 2 Ownership: 52% (33% target)	Capex	Leverage	Scatec target equity	D&C revenues
2	Offtake: 20-year PPA (USD) Financing structure: Equity last	\$492m	80%	\$32m	\$99m
	Brazil, 142 MW Solar*	Capex	Leverage	Scatec target equity	D&C revenues
	Ownership: 100% (51% target) Offtake: 10-year PPA (USD) Financing structure: Equity first	\$85m	35%	\$28m	\$4m
	Botswana phase 2, 60 MW Solar Ownership: 100% (51% target)**	Capex	Leverage	Scatec equity pre farm-down	D&C revenues
	Offtake: 25-year PPA (BWP/USD)	\$56m	75%	\$17m	\$47m
	Financing structure: Equity last
	Philippines, 56 MW BESS Ownership: 50%	Capex	Leverage	Scatec target equity	D&C revenues

22 *Equity last financing structures achieved through either equity last financing agreements, equity L/Cs or Equity Bridge Loans **Expected farm-down of Botswana post COD

Solid project equity returns generated from our integrated approach

Scatec project equity IRR build up

• Average equity IRRs for projects under construction, backlog and mature pipeline projects

• Strict value creation criteria drives all investment decisions
• Maximising returns through an integrated approach
• Average IRR from operations of ~15% and integrated IRR of ~30% incl. construction margins
• Returns locked in before construction start

23 *Project equity IRR from construction calculated based on D&C gross profit with a project leverage and EPC-scope of 80-85%, equity share of 51% and D&C gross margin of 10-12%

Optimization of working capital during construction

Illustrative Scatec EPC cash flows during construction (%)

Illustrative equity last financing structure* (% accumulated)

EPC-working capital

• Upfront inflows based on milestone payments
• Back-ended outflows achieved through supplier credits and trade finance
• D&C margins accumulated during the construction period

Equity last financing structure

• Equity injected last to optimize cash flows and project returns

Capturing more value through capital efficiency

Illustrative ownership platform – farm-down to 26% while retaining control

Timing dependent on project size and market conditions

Key rationale

• Value creation through increased D&C margins per equity invested
• Further IRR uplift through optimal timing of farm-down
• Reduced funding requirement supporting self-funded growth plan
• Retained control over construction and operations
• Egypt projects most relevant near-term for ownership platform

Divesting operating assets to fund strategic initiatives and crystallise value

Solid track record

• 6 transactions last 24 months*

Attractive pricing

• USD 1.5 million EV/MW average
• Value accretive price a prerequisite for all transactions

Structured valuation approach

• DCF of estimated future cash-flows with project specific discount rate**

*JV Hydro Africa sale to TotalEnergies in Jul-24 not included in the chart due to non-disclosure of transaction price

**DCF valuation highly dependent on remaining lifetime, PPA tariff, local discount rates etc.

Key takeaways

• Strong quarterly results
• Attractive near-term growth
• Committed to deleverage

Overview of change in net debt during the quarter- proportionate

NOK billion	Q2'24	Repayments	New debt	Change in cash	Currency effects and other changes	Q3'24
Project level	-13.6	0.3	-0.7	0.0	-0.1	-14.1
Group level	-8.4	0.1	0.0	0.0	0.3	-8.0
Total	-22.0	0.4	-0.7	0.0	0.2	-22.1

Project and Group level net interest bearing debt

• Repayments: Ordinary amortisations of debt on Project and Group level
• New debt, Project level: Drawdown of debt related to construction

Our asset portfolio

Plants in operation	MW		interest
South Africa		730	45%
Brazil		693	33%
Philippines		673	50%
Laos		525	20%
Egypt		380	51%
Ukraine		336	89%
Uganda		255	28%
Malaysia		244	100%
Pakistan		150	75%
Honduras		95	51%
Jordan		43	62%
Vietnam		39	100%
Czech Republic		20	100%
Release		38	68%
Total		4,221	49%

Capacity MW	Economic interest	Under construction		Capacity MW	Economic Interest	Project pipeline
		Grootfontein, South Africa Tunisia portfolio Mmadinare, Botswana phase 1		273 120 60	51% 51% 100%
		Mogobe, South Africa Release Total		103 9 565	51% 68% 56%
		Project backlog		Capacity MW	Economic interest
		Egypt Egypt Brazil Botswana Philippines	H 2	1,125 260 142 60 40	100% 52% 100% 100% 50%
		Philippines Total		16 1,643	50% 91%

	Capacity MW	Share in %
Solar	6,231	62%
Wind	2,274	23%
Hydro	144	1%
Green Hydrogen	980	10%
Release	300	3%
Storage	160	2%
Total	10,089	100%