Vow Green Metals AS

Investor Presentation • Aug 21, 2024

FIRST HALF-YEAR 2024 PRESENTATION

21 August, 2024

>

1

Valorizing biomass and biomass waste streams

2

The value of reducing emissions is massive – enabling profitable biocarbon at competitive price levels

Main developments

Funds raised, now breaking ground at Hønefoss

• In April, the Company announced that it was initiating a strategic process to raise capital to accelerate the realization of the Company's project portfolio. Pareto Securities was engaged to assist in the process
• Vardar AS and Skagerak Energi AS executed a NOK 70 million investment in Vow Green Metals AS. Skagerak Energi AS, through a subsidiary, invested NOK 20 million in an equity placement and Vardar AS invested NOK 50 million in equity by debt conversion
• The Company has established a NOK 10 million revolving credit facility with Sparebank 1 SR-Bank
• Elkem ASA and Vow Green Metals entered into a supply agreement for the annual delivery of up to 15,000 tons of biocarbon from the large-scale Hønefoss facility

Development highlights in key projects

Early Production Line

• The 2,500 tons early production line at Hønefoss is fully financed through a leasing agreement with Sparebank 1 SR-Bank.

Hønefoss Facility

• Loan agreement for the Hønefoss facility ("VGM Operatør AS") with DNB, 50 percent guaranteed by Eksfin, of NOK 344 million was signed in July
• Vardar AS executed NOK 50 million investment in VGM's large-scale production facility at Hønefoss in April. The investment makes Vardar AS a 25 percent stakeholder in VGM Operatør AS
• Construction at the Hønefoss site has commenced and is expected to be completed in 2025

Viken Park

• Pre-study for core technology completed together with technology partner, Vow ASA
• Pre-study with Carbon Centric for carbon capture (CCU) and energy offtake is ongoing

Breaking ground at Hønefoss with MNOK 344 green loan debtfinancing from DNB and Eksfin secured

• Execution of Civil Works started in May 2024
• •Groundwork and construction of buildings is running according to plan
• The installation of process equipment is planned to start in October this year
• Plant operation is expected in 2H 2025
• Vardar welcomed as 25 percent owner of the facility during 1H 24
• Vow Green Metals majority owner with remaining 75 percent
• Agreement signed July 2024, DNB as financer with 50% guarantee from Eksfin
• Total of NOK 344 million split in two facilities of NOK 144 million and 200 million, respectively
• The agreement secures full financing for the 10,000 tons first phase facility and buildings needed for the increase of production capacity to 20,000 tons

2,500 tons early production line in operations, and laboratory in place to accelerate product development

• 2,500 tons early production line in operation with the same technology as the in the first phase of the large-scale facility at Hønefoss significantly de-risking the project
• Producing biocarbon at industrial scale to deliver volumes to established partners, and product samples to mature new markets and relationships with industrial offtakers
• Additional pilot equipment in place at Hønefoss to increase capacity on product development efforts

De-risking large-scale projects while accelerating commercial efforts Reducing time and cost with laboratory at Hønefoss in place

• Laboratory established to accelerate product development and reducing the need for a third-party lab facility significantly reducing time and cost
• Several test instruments installed, including muffle furnaces to analyze volatiles and ash content, tumbler for durability testing, pellet crush force tester, viscosity measurement, moisture analyzer and more
• Close collaboration with national development and testing center, Future Materials, providing access to additional equipment and competencies

All key projects progressing well in the first half of 2024

Capacity: 2,500 tons p.a. Status: In operation – ramping up production Location: Hønefoss, Norway Partners: Vow ASA, Treklyngen industripark

• First biocarbon successfully produced
• The facility entered operations in the first quarter of 2024 and ramp-up is ongoing
• Continuously implementing key improvements providing significant synergies to the large-scale project, including faster ramp-up, operational knowledge and more

Early production line Hønefoss (phase 1 and 2) Viken Park

Capacity: 20,000 tons p.a. (10,000 first phase) Planned operation (phase 1): H2 2025 Planned operation (phase 2): H1 2026 Location: Hønefoss, Norway Partners: Vow ASA, Vardar Varme, Lindum, Treklyngen industripark

• Joint infrastructure project completed
• The interaction phase for civil works and process equipment installation completed
• Execution of civil works started in May 2024
• Majority of process equipment for phase 1 already delivered at site
• Main study for phase 2 ongoing, aiming for FID within second half of 2024

Capacity: 30,000 tons p.a. Planned FID: 1H 2025 Location: Fredrikstad, Norway Partners: Vow ASA, Viken Park, Carbon Centric and other stakeholders within the industrial park project

• Feasibility study completed
• Pre-study for a plant with 30,000 tons of biocarbon production capacity initiated
• Pre-study with Carbon Centric for CCU and energy offtake is ongoing
• Pre-study for core technology completed together with technology partner Vow ASA
• Feedstock and energy offtake LoI's in place
• The regulatory plan for the area is expected to be considered in the municipal council in October 2024

Status update

Vow Green Metals AS add value to biocarbon investment portfolios

MNOK 70 capital raise – welcoming strong industrial partners Skagerak and Vardar

• Strategic process to ensure speed and scale announced in April
• Vardar executed a NOK 50 million investment in VGM Operatør, the subsidiary holding the Hønefoss project, in April
• In May Vardar converted the NOK 50 million loan, executed in late 2023, to equity
• Simultaneously Skagerak Energipartner, a Skagerak Energi subsidiary, executed a NOK 20 million equity investment in cash

Financials for first-half 2024

Profit and Loss	Unaudited H1-2024	Unaudited H1-2023	Audited 2023
Employee expenses	(5.1)	(2.4)	(9.4)
Other operating expenses	(8.8)	(7.0)	(14.5)
EBITDA	(13.9)	(9.4)	(23.9)
Profit for the period	(15.7)	(9.5)	(26.0)

	Unaudited	Audited
Balance Sheet	H1 2024	YE 2023
Total non-current assets	231.7	136.8
Total current assets	44.3	46.4
Total assets	276.0	183.2
Total equity	202.2	100.0
Total non-current liabilities	40.0	50.6
Total current liabilities	33.8	36.6

Key figures (in MNOK) Financial review first-half 2024

• Increase in both employee expenses (NOK 2.7m) and other operating expenses (NOK 1.8m) compared to H1 2023 impacted the EBITDA.
• Employee expenses, including capitalized, were NOK 10.8m compared to NOK 6.1m in H1 2023.
• Leasing agreement of the Early production line recognized in non-current assets with NOK 46.3m. Recognition is in accordance with IFRS 16, and depreciation started in H1 2024.
• Remaining increase due to investments in the Hønefoss production site.
• Total of NOK 120.0m increased equity since year-end 2023.
• Non-current liabilities reduced by the NOK 50m debt conversion from Vardar AS, offset by the recognition of the leasing liability on the early production line.

FORGING A NEW ERA FOR THE METALLURGICAL INDUSTRY