Magnora ASA

Investor Presentation • Nov 29, 2023

Fearnley Securities 5 th Annual Renewables and Clean-Tech Conference

29 November- 2023

www.magnoraasa.com

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 6,7 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 7,800 shareholders²

1. GW x Magnora ownership = Net share 2. As of 19 October 2023

We invest and develop in renewable and clean energy projects built in a sustainable way

Top 20 shareholders

	# shares	% ownership
HAFSLUND VEKST AS	4 474 272	6,70
KING KONG INVEST AS	2 670 995	4,00
GINNY INVEST AS	2 469 144	3,70
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, N.A., LONDON	1 434 837	2,15
DNB BANK ASA	1 345 306	2,01
MP PENSJON PK	1 242 732	1,86
ALTEA AS	1 154 944	1,73
NORDNET LIVSFORSIKRING AS	1 103 751	1,65
MAGNORA ASA	1 070 854	1,60
AARSKOG PHILIP GEORGE	1 000 000	1,50
MORGAN STANLEY & CO. INT. PLC.	965 485	1,44
CLEARSTREAM BANKING S.A.	824 861	1,23
BALLISTA AS	760 372	1,14
BAKLIEN ÅSMUND	756 100	1,13
DANSKE BANK AS	746 558	1,12
Total number owned by top 20	30 759 534	46,03
Total number of shares	66 822 679	100,00

Key metrics – Q3 2023

Cash (NOK million)

367.6

Capital returned (mNOK) 39.2

Including share buyback

~ 350

GW in portfolio (Net share¹ ) 6.7 ~ 20% growth in 3 months

Advanced discussions on project sales

Origination discussions onshore

Including subsequent events

Sales to date (MW net to Magnora)

385 (Above our 200-325 MW guiding in 1H23)

Source: VPS, 24.11.2023

Contracts from a diversified business* Streamlining our business on the back of good news

Onshore

• » From selling projects in Helios only to multiple platforms
  • » Sweden, South Africa, UK, Finland and Norway '23-24
• » Sold close to 1 GW in Helios in 2022 and 2023 ca SEK 1 bn
  • » Delivered 147 MW
• » Sold 153 + 90 MW in South Africa in 2H 2023
• » Dividend/return of capital to Magnora from multiple sources

Legacy

• » Extension (Q4 '23) Western Isles with NEO (Greater Buchan Area – large resource base)
• » Shell Penguins payments coming up shortly USD 8.6 mill

Offshore

» Farm-down of Talisk (Scotwind) in the short to mid term

» Grid connection for Talisk

• » 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)
• » Incentive structure for offshore wind Sweden expected in 2024

Other

• » Evolar earn-out with First Solar potentially 24 MUSD
• » Sold shares in Neptun to existing shareholders
• » Established Magnora Utvikling (incubator)
• » Beat guiding in 2023: portfolio of 5GW two years ahead sales of 385 MW vs guiding at 200-325 MW prices in line with expectation.
• » Sales and revenues from a diversified business, each with long term growth prospects from multiple technologies and geographies
• » 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
• » Bright outlook in all segments for end of year and 2024. Strong underlying activities short to mid-term due to demand and good diversification

A portfolio diversified across technologies and regions

All figures are MW net to Magnora1 as of 19 October 2023	Solar PV	Offshore floating wind	Offshore bottom-fixed	Onshore wind	Storage	Under development
Sweden	2,485		250		600	3,335
Finland2	201					201
Scotland		396				396
England	108				110	218
Norway	376					376
South Africa	1,465			605	153	2,223
Development portfolio	4,635	396	250	605	863	6,749

Development portfolio last 10 quarters (MW net to Magnora)

De-risking early-stage renewable projects and mitigating risk requires savvy business skill, experience & "portfolio logic"

	Identified projects1)	Qualified/in negotiation	Signed / preparing sale2)	Sold3)
Sweden1	NA	200+ dialogues (12,000 ha)	~ 6,750 MW	955 MW
Finland	110+ dialogues	30+ deals/ dialogues	~ 500 MW
England	Ca 1.4 GW	300+ MW	~ 450 MW
Norway	1-1.5 GW	400+ MW	~ 600 MW
South Africa	250+ locations (20-30 GW)	30 Projects (3-4 GW)	~ 2,100 MW	243 MW

Origination initiatives – as of October

• Strong local teams receiving operating leverage, governance, and support for legal, M&A and execution out of Norway
• Several leads behind each signed project
• Economic feasibility, grid connection and environment are risk factors
• In early stages, quality is more important than volume of leads
• Most projects are sold before they are readyto-build and payments include associated milestone payments
• Magnora's customer base carries little counter-party risk after a project is sold
• Key success criteria: balancing origination, development and sales

1) Looks promising based on early screening. 2) Land agreements signed and no obvious obstacle to eventual development 3) Sales frequently take place before a project is ready to build; sales volumes also include some projects that are sold and handed to customer with no further obligation on the developer.

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
Other Helios customers include Nordic Solar	Leading European Solar Independent power producers (IPP)
Solgrid	Owned by some of the largest utilities in Norway
Magnora sold Evolar to First Solar Inc.	America's leading manufacturer of Solar PV, and the most valuable solar PV company anywhere

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

Karenslyst allé 6 | 1st Floor

0277 Oslo | Norway

magnoraasa.com

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

Collective drive towards green shift gives lower risk in earlystage development

Value premium for early-stage project development with low operational costs

Reducing risk in development phase through high competence and experience

Slide 10

Strategic partnerships

Hand-picked management and team executing on big renewables opportunities with 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

Bjørn Drangsholt CEO Hafslund Magnora Sol AS

Emilie Brackman VP Wind & Solar

Peter Nygren Expert Advisor

Trond Gärtner SVP Business development

Haakon Alfstad CEO Magnora Offshore Wind

development

A recalibrated look at Magnora may reveal overlooked revenues and farm-down opportunities

	Segment	Investment opportunity	Revenue potential 2023-25
	Legacy	Foreseeable, long-term, low risk license revenue from reliable customers	USD 8.6 mill (Shell Penguins) – 50 cent/barrel from Western Isles FPSO
	Onshore renewables	High volume of medium sized developments with a medium horizon (1-3 years), scalable, sought by growth investors and utilities	Sold projects for above NOK 1 bn in Sweden and South Africa. Delivered 147MW.* Helios's net profit 2022/23 was SEK 97 million
	Offshore renewables	Careful development, large deals, political economy, sought by pension funds and major energy companies	Farm-downs may provide significant payments or value uplifts
	Evolar AB	Milestones	Up to USD 24 million

*The dominant business model involves early sales and partial payment, with the final milestone payments upon reaching ready-to-build status

Outlook

Board and management exposure "Skin in the game"

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 %

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

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)

30 000

..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%	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	8,214 MW	2,223 MW		495 MW	500 MW	220 MWh	215 MW	784 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	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

Condensed statement of cash flow

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	- 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	0.0	0.0	0.0	0.0	0.0	23.7
option
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	- 2.3		-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	1719	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:

This presentation has been prepared by the Company based on information available as of the date hereof. By relying on this presentation you accept the risk that the presentation does not cover all matters relevant of an assessment of an investment in the company.

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The presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof, and may contain certain forward-looking statements, which include all statements other than statements of historical fact. By their nature, forward-looking statements involve risk and uncertainty because they reflect the Company's current expectations and assumptions as to future events and circumstances that may not prove accurate. It should be understood that subsequent developments may affect the information contained in this document, which neither the Company nor its advisors are under an obligation to update, revise or affirm. Forward-looking statements involve making certain assumptions based on the Company's experience and perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. Although we believe that the expectations reflected in these forward-looking statements are reasonable, actual events or results may differ materially from those projected or implied in such forward-looking statements due to known or unknown risks, uncertainties and other factors. These risks and uncertainties include, among others, uncertainties in the electric consumer market, uncertainties inherent in projecting future rates of production, uncertainties as to the amount and timing of future capital expenditures, unpredictable changes in general economic conditions, volatility of prices, competitive risks, counterparty risks including partner funding, regulatory changes and other risks and uncertainties discussed in the Company's periodic reports. Forward-looking statements are often identified by the words "believe", "budget", "potential", "expect", "anticipate", "intend", "plan" and other similar terms and phrases. We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation, and we undertake no obligation to update or revise any of this information.

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Karenslyst allé 6 | 1st Floor 0277 Oslo | Norway magnoraasa.com