Magnora ASA

Investor Presentation • Jan 18, 2024

www.magnoraasa.com

Magnora ASA Pareto Securities' annual Power & Renewable Energy Conference

CEO Erik Sneve, 18 January 2024

A pure play "asset-light" renewables developer greenfield origination

Growing an asset-light development portfolio of renewable energy projects with strict capital discipline

Highly experienced team from investments and renewable energy development – operating leverage

Landbank growing rapidly – in Q3 we reached 7,7 GW aiming for 9GW¹ of renewables in 2025

Zero debt, low burn, solid cash position and near-term cash flow from project sales, legacy business and dividends

Listed on the main board of Oslo Stock Exchange with some 7,400 shareholders²

1. GW x Magnora ownership = Net share 2. As ofJ anuary 2024

A portfolio diversified across technologies and regions

All figures are MW net to	Solar PV	Offshore floating wind	Offshore bottom-fixed	Onshore wind	Storage Under development
Magnora1 as of 31 December 2023
Sweden	2,716		250		688	3,654
Finland2	303					303
Scotland		396				396
England	128				160	288
Norway	391					391
South Africa	1,875			605	253	2,733
Development portfolio	5,413	396	250	605	1101	7,765

Both our clean energy projects and our approach to business are built in a sustainable way

2024 Scaling and harvesting

• Multiple businesses shifting to sales – SA, UK, Finland, Norway in addition to Sweden
• More revenue recognition as sold projects are delivered in multiple markets
• Organic growth across geographies and products/technologies
• Multiple milestone payments
• Focus on internal growth as well as new markets business development
• Capital allocation dividend and buybacks as we receive more cash

Strategy established

• Returned 517 MNOK to shareholders and buybacks from 2018

• Four employees and NOK 50m cash Q1
• Focus on renewables with support from top shareholders

Building business

• Diversification to various renewable segments
• Investments in Helios, South Africa
• Helios first sale
• ScotWind application
• Kustvind, Evolar

Operational and financial

• excellence
• First dividend from portfolio company
• Hafslund becoming largest shareholder
• New mutual funds top 20 shareholders

"Go to market"

• Sold 420 MW net
• First "hand-overs"
• Exit from Evolar at up to x10 multiple
• Three sales in South Africa
• Sale to Hafslund, Commerz...
• Growth combined with return of capital to shareholders, 39 mNOK
• Legacy contract extension

2018-2020 2020-2021

The recent transformation of Magnora has been profound and combines growth and harvesting

The Journey in numbers

• 420 MW Sales met to Magnora in 2023 (above our 200-325 MW guiding)
• 367 mNOK Cash in Q3 versus 11 mNOK 15 months prior
• 180 mNOK EBITDA as of Q3 vs 10 mNOK for 2022
• 39 mNOK Capital returned since June 2023 including share buyback

Revenues from a diversified business, with long term growth prospects* Bright outlook across all our segments

Onshore

• » Revenue from sales processes in all portfolio companies, with Helios being the most advanced (sold close to 1 GW to date with contractual revenues of some SEK 1 bn)
• » Success criteria: sales and portfolio management in a scalable business with 210+ medium sized developments, marketable in 1-3 years, sought by growth investors and utilities

Offshore

• » Revenue from farm-downs when the conditions are favourable (typically grid, permits and CfD prices)**
• » Success criteria: careful development of large deals and extensive stakeholder management

Legacy

• » Revenue at USD 8.6 million (Shell Penguins)
• » Western Isles extension securing long term revenues of 50 cent per barrel in years to come
• » Success criteria: managing relationship to secure long-term, low risk license revenue from reliable customers

Other

• » Evolar earn-out with First Solar potentially 24 MUSD
• » Sold shares in Neptun to existing shareholders

• » Deferred tax asset and paid in share capital

• * Note, the disclaimer on page 30 applies fully to these forward-looking statements

• ** CfD levels soared in UK for floating wind to NOK 3.25 KWh (vs. i.e. NOK 0.66 KWh for bottom fixed at in Sørlig Nordsjø 2)

Business model

We are developing renewable projects to the Ready-to-Build phase

Developing projects to Ready-to-Build phase ("ASSET-LIGHT") with limited balance sheet risk

Basic economics ensure that RtB projects will remain in high demand with limited new supply

The global energy market is only starting to transition forcing a sustained mega trend

Source and images borrowed from Danske Bank with reference to BP statistical review 2022

Our ("repeat") customers are leaders in their respective markets with low risk and high future potential for Magnora

Globeleq	Our first customer in South Africa - is owned by the Norwegian and UK governments and is an ambitious and respected developer
Commerz Real AG	is a Helios customer and a leading European bank and infrastructure investor
Hafslund	(21 TWh year in green energy)– a Helios customer and a partner in Hafslund Magnora Sol AS - is a leading European utility
Nordic Solar	Leading European Solar Independent power producers (IPP), Helios customer
Solgrid	Owned by some of the largest utilities in Norway, Helios customer
First Solar Inc.	America's leading manufacturer of Solar PV, and the most valuable solar PV company anywhere, acquired Evolar AB from Magnora

Organization

Hand-picked management supporting strong local teams with experience and entrepreneurial approach

Torstein Sanness

Executive Chairman

• Co-founder of Lundin Petroleum Norway and DNO, and from several executive positions during his 25 years at Saga Petroleum.
• Board member IPC, Panoro Energy, Carbon Transition, previously Chairman of Lundin Petroleum Norway.
• Master's degree in Engineering (geology, geophysics and mining engineering) from NTH.

Erik Sneve

CEO

• 25 years experience from various positions in the investment and renewable industry
• Experience from working as an analyst, consultant and investment director in EY, DnB Markets, Energy Future Invest (EFI – a Statkraft, Hafslund and Eidsiva Energi joint-venture), Tore Tønne and Torstein Tvenge.
• COO Has worked internationally in the US, Sweden, Germany and opened offices in the UK and Sri Lanka in software company.
• Responsible for the Solibro AB (Swedish solar technology company) development, construction and exit for EFI to Qcells. • Former Chairman Evolar AB – development and exit to First Solar
• Inc.
• B.Sc. in Finance from Arizona State University with Summa Cum Laude (Dean's list).

Strong team of professionals with extensive experience from the energy industry

Bård Olsen CFO

Professor

Stein Bjørnstad Senior Advisor, Ass

Bjørn Drangsholt Advisor

Emilie Brackman VP Wind & Solar

Peter Nygren Expert Advisor

Trond Gärtner SVP Business development

Haakon Alfstad CEO Magnora Offshore Wind

VP Business development

Slide 15

Board and management exposure "Skin in the game"

Board and Management exposure

Person		Number of shares	Number of options
Erik Sneve	CEO	1,173,871	450,000
Torstein Sanness	Chairman	629,442	325,000
Haakon Alfstad	CEO Magnora Offshore Wind	111,177	200,000
Hilde Ådland	Board Member	39,011	10,000
Bård Olsen	CFO	75,000	125,000
John Hamilton	Board Member	33,837	40,000
Espen Erdal	VP Business Development	17,174	125,000
Trond Gärtner	SVP Business Development	7,000	100,000
Emilie Brackman	VP Wind & Solar	2,600	75,000
Hanne Wiger	Business Controller	4,474	50,000
Stein Bjørnstad	Head Advisor	15,000	50,000
Total		2,108,586	1,550,000
% of shares outstanding		3.16 %

Ownership structure as of 16 January 2024

Shareholder	Shares	% of total
HAFSLUND VEKST AS	4 474 272	6.7
KING KONG INVEST AS	2 670 995	4
GINNY INVEST AS	2 469 144	3.7
ALDEN AS	2 217 825	3.32
F1 FUNDS AS	1 743 121	2.61
PHILIP HOLDING AS	1 648 377	2.47
F2 FUNDS AS	1 630 000	2.44
CARE HOLDING AS	1 500 000	2.24
JPMORGAN CHASE BANK	1 434 777	2.15
DNB BANK ASA	1 365 979	2.04
MP PENSJON PK	1 242 732	1.86
ALTEA AS	1 154 944	1.73
NORDNET LIVSFORSIKRING AS	1 147 947	1.72
MAGNORA ASA	1 070 854	1.6
AARSKOG PHILIP GEORGE	1 000 000	1.5
MORGAN STANLEY & CO. INT. PLC.	977 081	1.46
CLEARSTREAM BANKING S.A.	774 906	1.16
BALLISTA AS	760 372	1.14
BAKLIEN ÅSMUND	756 100	1.13
DANSKE BANK	696 752	1.04
Total number owned by top 20	30 736 178	46
Total number of shares	66 822 679	100

Outlook

* Outliers are excluded: stand-alone solar PV in South Africa is unlikely to fetch premium prices while certain projects in certain markets sell above this range.

Board initiated an evaluation of corporate structure and engaged Pareto Securities to assist in the process of enhancing shareholder value based on interest for the group and group companies

Appendices

www.magnoraasa.com

Update on some key markets

The case for renewable energy is strong in all our markets

	Electricity price to consumer (NOK/kWh) 2023 excl. net and tax	LCOE Solar PV (NOK per kWh)	Stated govt. ambition or similar for renewables by 2030	Regulatory regime
Norway	Ca 0.95 (Q1 and Q2)	NA	40TWh (incl. 5-10 hydro (Energikommisjonen)	Generally supportive
UK	0.70 (52 GBP per MW in first half of 2023)	Ca 0.5 (0.33 by 2030*)	Government aims for 30 GW solar, 50 GW offshore wind	Generally supportive
Sweden	Ca 0.75 (SE3 and SE4)	Ca 0.5 (0.33 by 2030*)	Market expect 30TWh (no official policy)	Very supportive
South Africa	1.20 (above 2 ZAR) including net	0.35- 0.45	Government and Eskom aims for 20-30 GW	Supportive but complex - lacks spot market

*According to Norwegian Water Resource and Energy Directorate (NVE), 2022 prognosis

Swedish electricity market is set to double by 2035

Solar power is expected to be one of the main contributors

30 000

Source: Lazard'slevelized cost of energy analysis, BCG (Why electric cars can't come fast enough, Capital monitor, European Commission, Swedish Government, Swedish solar trade association, IEA (World energy outlook 2022& renewables data explorer), Solar power Europe (Global Market outlook for solar power, Energimyndigheten (short-termforecast summer 2022)

..in addition, the UK energy market is expecting soaring growth in both battery and solar markets by 2030

Rapid growth of utility-scale battery storage facilities in the UK

• Short-term electricity energy storage capacity in the UK is currently dominated by pumped hydro, a mature technology with limited potential for significant capacity increase over the next three decades due to geographical constraints.
• On the other hand, utility-scale battery storage facilities in the UK have experienced rapid growth in recent years and now account for approximately one-third of the grid's storage power capacity. This growth trend is expected to continue, with projected energy storage capacity reaching 190 GWh by 2050.

How UK solar can become a 40GW+ market by 2030

• While dominated by wind power, the UK solar market is set to experience significant growth, with the potential to add up to 25GW of solar capacity by 2030
• All market segments in the UK solar industry are in growth mode, showing encouraging contributions from various subcategories, including residential and commercial rooftops, as well as utility-scale ground-mounted solar farms. The cumulative capacity is expected to reach 40GW by the start of 2030, driven by a combination of rooftop and ground-mount installations

Source: DNV Energy transition outlook, UK 2022

The UK has been number one in EY's ranking of attractive countries for offshore wind for the past three years¹

Benefitting from governmental policies and regulatory regimes focused on accelerating the deployment of offshore wind.

Scotland's Pioneering Role in Offshore Wind Innovation

1

2

3

4

Ambitious government targets for deployment

• Up to 50GW offshore wind capacity by 2030, including up to 5GW of FOW²
• Scottish government is targeting 11GW by 2030³

Excellent geography for offshore wind

• As an island nation, the UK is well suited to offshore wind deployment
• The UK, in particular Scotland, has some of the best wind resource in the world³

Established, well-regarded regulatory regime

The UK has developed a regime covering the entire offshore wind project life cycle with plans to accelerate the pipeline deployment

Scotland at the forefront of FOW development

• Scotland deployed the world's first FOW farm, Hywind, followed by the world's largest FOW farm, Kincardine
• 40% of the c.78GW offshore pipeline is FOW²

Map of operational UK offshore wind sites⁴

South Africa has huge potential, and our asset-light model carries little risk

The fundamentals of this market is very promising

• Some 60 million customers in the only potential mid-income market in Africa
• A power-consuming and export-oriented industry, particularly mining that needs secure power supply and may be subject to pressure from customers about sustainability (a very interesting PPA market)
• Rolling shut-downs of electricity system drives strong interest from corporate and industrial customers bypassing the government auction system.
• Ambitious goals from the government, and a well-established system of auctions (REIPPP) where private companies bid to supply capacity. This REIPPP program has secured 2.8 GW of solar PV and 3.4 GW as of August 2023
• The ambition is to expand the REIPPP program to secure another 20- 30 GW in 10 years
• A geography with excellent opportunities for renewable energy: abundant land, best-in-class sun resources and fairly constant and stable wind resources
• A run-down power system where coal contributes 80-85 % of the current electricity supply, set for replacement by a combination of renewables, batteries and some gas power

Rapid growth of installed Solar for both industry and consumer markets

Estimated Cumulative Solar PV in South Africa (C&I and Residential) in MW

Source: Eskom, integrated resource plan, and https://www.bloomberg.com/netzeropathfinders/best-practices/integrated-resourceplan-south-africa/

Example of Helios farm-downs – total 953,5 MWp Magnora is largest shareholder in Helios

Broad portfolio of attractive companies and projects – Gross Numbers

(per October 2023)

Ownership	40%	100% 92%		80%	45% Option to 50%		50%	48%
						STORAGE UK	PV UK
Segment	Solar & Energy Storage	Onshore Wind & Solar		Offshore Wind	Offshore Wind Shallow Water	Energy Storage	Solar	Solar
Gross Capacity	9,210 MW	2,733 MW		495 MW	500 MW	320 MWh	255 MW	815 MW
Location	Sweden, Finland, Baltics	South Africa		Scotland	Sweden	UK	UK	Norway

Reported financials

Condensed consolidated income statement

NOK million	Note	Q3 2023	Q2 2023	YTD 2023	Q3 2022	YTD 2022	2022
Operations
Operating revenue	5	3.9	2.3	22.7	3.8	13.5	91.7
Other income	4	10.2	229.6	239.8	0.0	0.0	0.0
Operating expense	2	$-10.7$	$-9.5$	$-28.0$	$-6.4$	$-22.3$	$-31.8$
Development and M&A expense	$\overline{2}$	$-18.8$	$-18.2$	$-54.5$	$-15.6$	$-46.1$	$-49.4$
EBITDA		$-15.3$	204.3	180.0	$-18.2$	$-55.0$	10.5
Profit/loss from associated companies		$-8.1$	$-4.9$	13.6	$-2.3$	0.6	$-3.9$
Operating profit/(loss)		$-23.5$	199.3	193.6	$-20.5$	$-54.3$	6.6
Financial income/(expense)		4.0	$-1.4$	2.0	$-1.8$	$-0.9$	$-2.1$
FX gain/(loss)		0.5	5.1	$-0.9$	3.9	4.6	7.4
Net financial items		4.5	3.7	1.1	2.1	3.7	5.4
Profit/(loss) before tax		$-19.0$	203.0	194.7	$-18.4$	$-50.6$	12.0
Tax income/(expense)		0.0	0.0	0.1	0.1	0.2	$-8.1$
Net profit/(loss)		$-19.0$	203.1	194.8	$-18.3$	$-50.4$	3.9

Reported financials

Condensed statement of financial position

NOK million Note	30.09.23	30.06.23	31.12.22
Deferred tax assets	15.1	15.1	15.1
Intangible assets	136.1	142.1	170.9
Right-of-use assets	0.0	0.0	9.0
Fixed assets	0.5	0.3	15.3
Goodwill	8.4	10.4	34.1
Other non-current assets	2.0	2.0	0.0
Investment in associates	41.9	50.2	26.4
Total non-current assets	203.9	220.0	270.9
Trade and other receivables	26.8	23.7	97.7
Other current financial assets	24.8	25.8	23.7
Cash and cash equivalents	367.6	409.1	171.9
Total current assets	419.2	458.5	293.3
Total assets	623.2	678.5	564.2
Share capital	32.7	32.7	32.7
Treasury shares	$-0.5$	$-0.2$	0.0
Other equity	525.0	578.2	353.3
Total shareholders' equity	557.2	610.7	386.0
Non-controlling interest	18.3	21.6	45.8
Total equity	575.5	632.3	431.8
Deferred tax liability	0.4	0.4	4.9
Non-current liabilities	0.0	0.0	5.2
Total non-current liabilities	0.4	0.4	10.1
Overdraft facility*	0.0	0.0	76.3
Current liabilities	47.2	45.8	46.0
Total current liabilities	47.2	45.8	122.3
Total liabilities	47.6	46.3	132.4
Total equity and liabilities	623.2	678.5	564.2

For further details and notes see Q3 report 2023 (magnoraasa.com)

Reported financials

NOK million	Q3 2023	Q2 2023	YTD 2023	Q3 2022	YTD 2022	2022
Cash flow from operating activities
Cash from operations	$-10.3$	$-18.0$	13.8	$-18.9$	$-51.8$	$-67.7$
Taxes paid/repaid	0.0	0.0	0.0	0.0	0.0	0.0
Net cash generated from operating activities	$-10.3$	$-18.0$	13.8	$-18.9$	$-51.8$	$-67.7$
Cash flow from investment activities
Net purchase of marketable securities	0.0	0.0	0.0	0.0	1.3	0.0
Investment in fixed assets	$-0.1$	$-1.7$	$-5.5$	$-0.8$	$-4.7$	$-8.7$
Dividend received	0.0	24.1	24.1	6.1	6.1	6.1
Divestment of subsidiary net of cash acquired	8.9	299.1	308.0	0.0	3.8	$-6.7$
Net purchase of associated companies	$-2.5$	$-10.0$	$-24.0$	$-5.1$	$-30.7$	$-21.4$
ScotWind lease option fee	0.0	0.0	0.0	0.0	$-94.6$	$-118.3$
Received loan related to ScotWind lease option	0.0	0.0	0.0	0.0	0.0	23.7
Net cash from investment activities	6.3	311.4	302.6	0.2	$-118.8$	$-125.3$
Cash flow from financing activities
Purchase of own shares	$-26.9$	$-5.3$	$-32.2$	0.0	0.0	0.0
Capital distribution/increase	0.0	0.0	0.0	192.3	195.6	194.4
Leasing payments	0.0	$-0.4$	$-1.4$	0.0	0.0	$-2.7$
Project Loan	1.6		1.6
Overdraft facility drawn*	0.0	0.0	$-76.3$	12.1	74.6	76.3
Capital reduction paid out	$-12.3$		$-12.3$
Net cash from financing activities	$-37.6$	$-5.7$	$-120.6$	204.4	270.1	268.0
Net cash flow from the period	$-41.5$	287.7	195.7	185.7	99.6	75.0
Cash balance at beginning of period	409.1	121.5	171.9	10.7	96.9	96.9
Cash balance at end of period	367.6	409.1	367.6	196.4	196.4	171.9

For further details and notes see Q3 report 2023 (magnoraasa.com)

Disclaimer

The information in this presentation has been prepared by Magnora ASA (the "Company"). By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations and provisions:

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