Scatec ASA

Investor Presentation • Sep 29, 2022

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 second quarter and first half 2022 report for the group.

Capturing value in the green transition

Welcome

09:05 – 10:00

Strategy Update

• Grow Renewables
• Advance Green Hydrogen
• Optimise Asset Portfolio

Financials

10:00 Q&A 10:30 Mingling

Renewables demand driven by environmental, economical and geopolitical factors

Installed capacity of non-fossil energy to reach net zero

Installed capacity outlook in TW

• Despite short-term turmoil, renewables has strengthened against conventional energy
• 82% of emerging markets have a net zero target as of end 2022
• Green hydrogen to play a key role in decarbonising hard-to-abate sectors

Source: BNEF New Energy Outlook 2021, Green scenario for net-zero 1: Other non-fossil: Bioenergy, nuclear, battery storage, hydrogen and other RE 5

Scatec has a track record of profitable growth in emerging markets

(1) Includes 1.2 GW under construction (2) Per million hours worked (3) LTI

Our strategy is built on our core strengths

Emerging markets focus and track record

Proven integrated business model

Multi-technology approach

Partnerships

Leading in ESG

Our strategy: Develop, build, own and operate renewable energy in emerging markets

Grow Renewables

Advance Green Hydrogen Optimise Portfolio

9

We target to invest NOK 10 billion and double Power Production EBITDA

Targets towards 2027

NOK 10 billion Equity investments¹

1.2x CoE² Project equity IRR

NOK+3 billion Power Production EBITDA³

1.5 GW Avg annual capacity additions⁴

(1) Committed equity for new power plant investments (2) Cost of Equity (3) Additional Annual Proportionate Power Production EBITDA generated from 10 BNOK Equity investment (4) Average gross capacity additions

Our strategy: Develop, build, own and operate renewable energy in emerging markets

Grow Renewables

Advance Green Hydrogen Optimise Portfolio

Our strategy: Build scale, improve predictability and secure competitiveness

Selection criteria

• Large and growing power demand
• Clear energy transition agenda
• Predictable regulatory frameworks
• Strong conditions for renewables

Scatec's focus markets

*Hydro Africa has operations in Uganda and pipeline projects in Malawi, Madagascar, Rwanda/DRC/Burundi, Cameroon, Gabon and Guinea

Benefits of market focus – South Africa

Strategy in focus markets

• Market understanding and long-term perspective
• Applying our multi-technology capabilities
• Long term finance partnerships
• Strong ESG capabilities and track record

RMIPPP multi-technology solution

• 540 MW solar / 225 MW storage
• 150 MW dispatchable power

988 MW

In operation and under construction

273 MW backlog

3,660 MW project pipeline

Leverage our strengths and partnership with Equinor in Brazil

Long term focus & strong market presence

Multi-technology - solar & wind

Several off-take alternatives

693 MW

In operation and under construction

1,276 MW project pipeline

Project pipeline and backlog of 16 GW across renewable technologies - 80% held in our focus markets

• Focus on larger projects
• Average pipeline project size 350 MW
• Target average equity investment of NOK 500 million in projects

Our strategy: Develop, build, own and operate renewable energy in emerging markets

Grow Renewables

Advance Green Hydrogen

Optimise Portfolio

The next five years green hydrogen demand will be driven by strong policy support in EU, US and Japan

Green hydrogen demand forecast

Demand drivers next 3-5 years:

• EU, US and Japan are targeting to ramp up the use of green hydrogen for industrial use
• Key policies:
  • REPowerEU
  • Inflation reduction Act in the US
• Industry leaders in the fertiliser and shipping industries are driving the market development

Building on Scatec's strengths to be an early mover in green hydrogen

Our approach

Seek prime locations

Apply the integrated model

Secure debt & equity financing

Seeking prime locations Low-cost renewables is a must for the economics of green hydrogen North Africa has the resources, land available and proximity to shipping lanes

Seeking prime locations Egypt is developing into a green energy and hydrogen hub

Egypt's energy policy;

• Grow low cost solar and wind capacity
• Develop green hydrogen and ammonia facilities by the Suez canal
• Free up natural gas to power for Europe
• Strong support from EU, World Bank and DFIs

We believe our integrated model is critical to succeed

Scatec aim to develop, finance, build, own and operate the full integrated facilities

Risk mitigated through proven technology and processes

• Reputable providers of technology and system integration
• Utilising proven technology
• Adequate risk sharing between parties
• Sufficient system redundancy
• Extensive due diligence processes

Illustrative project structure

21 *Provided by reputable service and technology providers. Performance obligations and guarantees carried by technology and process providers

We are advancing our green hydrogen projects in Egypt and Oman

Our most advanced projects

Egypt: 100 MW green hydrogen sold to Fertiglobe

• Partnership with Fertiglobe, Orascom and Sovereign Fund of Egypt
• 12,000 MT p.a. from 100 MW electrolyser / 260 MW solar & wind
• Capex of USD 430 million, 75% leverage, Scatec ownership of 52%

Oman: 100k MT green ammonia sold to Yara

• Partnership with Acme for green ammonia production
• 100k MT p.a. from 300 MW electrolyser / 500 MW of solar
• Capex of USD 650 million, 75% leverage, Scatec ownership of 50%

Our strategy: Develop, build, own and operate renewable energy in emerging markets

Grow Renewables

Advance Green Hydrogen Optimise Portfolio

Consolidate and simplify our portfolio to gain scale benefits

Strategic actions

• Divest smaller assets over time
• Concentrate pipeline towards larger projects in focus markets
• Create more scale on existing cost base and reduce cost at asset level

Adjusting market approach in the Philippines to capture more value

• The product mix shifting based on market conditions contract, spot and ancillary services
• High contract sales volume at fixed prices, weak hydrology and high spot prices last 12 months
• Going forward contract sales will be lower to capture more value from higher power prices

Revenues – NOK million

Scale and launch an independent Release platform - Prepared to raise external equity and debt funding

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Financials

Financial update – a solid platform for growth

• A diversified asset portfolio
• Prudent financial risk management
• Continued focus on capital discipline
• Solid cash flow to support growth

Diversified and predictable cash flows

Expecting to be 100% EU Taxonomy compliant when reporting at year end 2022

(1) Median annual net production. (2) Proportionate Financials

All projects carefully structured to manage financial risk

• Long term PPAs with fixed tariffs with the exception of the Philippines
• Local PPA tariffs subject to CPI adjustments in South Africa and Brazil
• Currency risk mitigated by matching PPA and debt currencies
• Interest rate hedged with long tenors
• Debt amortisation over loan tenor reduces debt service volatility and refinancing risk

Stable long term cash flow supports growth and debt service at group level

• Green Finance framework basis for our funding
• Adequate group level debt relative to current long term cash flow
• USD 193 million Bridge to bond maturity extended to Q1 2024

NOK billion	Project level	Group level	Total
Cash	1.8	2.0	3.8
Debt	-13.0	-7.9	-20.9
Net debt	-11.2	-5.9	-17.2
Interest hedging ratio*	84%	19%
Q2'22 debt interest rate	6.0%	3.2%
Avg remaining loan tenor	11 yrs	3.3 yrs

31 (*) Of gross debt. Includes three assets in Brazil and South Africa with CPI adjusted debt where with PPAs tariffs are CPI adjusted (3% of total debt). Hedging ratio project level at 74% in 2027 and 61% in 2032. (**) Group cash + USD 180 million Revolving Credit Facility.

Available liquidity** NOK 3.8 billion End Q2'22:

Group level net debt / LTM Power Production Cash flow to Equity:

4.2x

Target to double Power Production EBITDA to NOK 6 billion - 25% of growth secured from projects under construction

Power Production annual EBITDA increase from NOK 10 billion investment

• 40-45% of EBITDA is converted to cash flow to Scatec (after project level debt service)

Investment criteria Multiple sources of value create robust investments

• Project equity IRR of 1.2x Cost of Equity
  • Cost of Equity calculated based on standard CAPM methodology taking into account country risk premium, currency, technology, leverage, off-take structure
• Development & Construction gross margin of 8-10%
  • D&C revenues expected to average 50% of capex
• Services EBITDA margin of 25-30%
• Target Scatec equity investment of average NOK 500 million per project

Illustration of project equity IRR build up

Previous guidance followed same principle

• Average 12-16% project equity IRR based on average Cost of Equity of 10-13% across project portfolio.

Moderate funding needed to realise our growth target towards 2027

Funding structure – high level estimates

NOK billion

Equity based on:

• 75% project leverage
• 50% Scatec ownership on average

Our strategy: Develop, build, own and operate renewable energy in emerging markets

Grow Renewables

Advance Green Hydrogen Optimise Portfolio

Participants dial-in numbers: PIN Code for all countries: 554078

NO: +47-21-956342 SE: +46-4-0682-0620 UK: +44-203-7696819 US: +1 646-787-0157