Second quarter 2022 Stable operations and ramping up for construction

CEO, Terje Pilskog & CFO, Mikkel Tørud

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.

Stable operations and ramping up for construction

Proportionate revenues of NOK 1,130 million (1,007) and EBITDA1) of NOK 517 million (601)
Solid performance with production increase of 7%
Construction of new power plants started in South Africa, Brazil and Pakistan
Power-to-X progressing well
Term sheet with Yara for offtake in Oman
100 MW green hydrogen in Egypt moved into backlog

1) EBITDA and other alternative performance measures (APMs) are defined and reconciled as a part of the APM section of the second quarter and first half 2022 report on pages 36-39.

Solid operating performance from a diversified portfolio of plants

Power production, GWh

Share of power production

Ramping up construction based on proven operating systems

Track record of +1 GW construction in parallell
D&C contract value of NOK 8.9 billion
Placing large orders to lock in cost for EPC
Close monitoring of performance, HSSE and suppliers
Rated top 1% by Ecovadis on sustainability

South Africa: RMIPPP starting construction

540MW solar and 225/1,140MWh battery power plant
20-year PPA with Eskom providing 150 MW of dispatchable capacity
Scatec ownership of 51% alongside H1 Holding with remaining 49%
Capex of ZAR 16.4 billion (USD 962 million)
76% non-recourse debt from lender group incl. Standard Bank and BII
Scatec sole provider of EPC, O&M and AM services
Placing orders, hedged financial exposure and ramping up construction

Brazil: Mendubim starting construction

531 MW solar plant in partnership with Equinor and Hydro Rein
20-year PPA with Alunorte for 60% of the volumes
Equal ownership and EPC-scope among the three partners
Total capex of USD 430 million
56% non-recourse debt from IDB, Santander & BNPP
Placing orders and starting construction activities on site

Ramping up construction in Pakistan, Release progressing well in Cameroon

Pakistan – 150 MW Sukkur solar project

Ramping up construction after resolving demarcation process
25-year PPA with Pakistan authorities
Ownership of 75% with Scatec as sole provider of EPC, O&M and AM services

Cameroon – 36 MW / 20 MWh Release solar & battery project

18 MW of 36 MW installed and operational
Pre-assembled, modular and re-deployable power system
Providing clean, stable power under lease contract with Eneo

A project portfolio of 20.3 GW – a solid platform for further growth

		(Since Q2'21)
In operations	3,355 MW	(-)
Under construction	1,266 MW	(+1,107 MW)
Project backlog*	933 MW	(-1,148 MW)
Project pipeline*	14,786 MW	(+2,498 MW)
Total	20,340 MW	(+2,457 MW)

9 (*) For definition, see Other definitions in the second quarter and first half 2022 report on page 40

Power-to-X progressing in Egypt and Oman

Egypt: 100 MW green hydrogen moved to backlog

Partnership with Fertiglobe, Orascom and Sovereign Fund of Egypt
12,000 MT p.a. from 100 MW electrolyser / 260 MW solar & wind
Term-sheet signed for 20-year offtake agreement with Fertiglobe

Oman: Term-sheet with Yara for offtake of green ammonia

Partnership with Acme for green ammonia production in Oman
100,000 MT p.a. from 300 MW electrolyser / 500 MW of solar

Key priorities next three months

Ramp up of construction of new power plants in South Africa, Brazil and Pakistan
Optimise economics of project backlog
Continue to mature project pipeline
Capital Markets Update to be held on 29 September 2022

Financial review

Mikkel Tørud, CFO

Proportionate financials

NOK million
Revenues	Q2'22	Q1'22	Q2'21	2021
Power Production	1,015	933	875	3,890
Services	79	66	68	260
Development & Construction	25	5	51	137
Corporate	12	10	13	42
Total	1,130	1,014	1,007	4,329
EBITDA
Power Production	617	490	660	2,949
Services	20	16	24	75
Development & Construction	-81	-75	-54	-223
Corporate	-39	-34	-28	-114
Total	517	398	601	2,686
EBIT
Power Production	340	-554	432	1,977
Services	18	15	23	70
Development & Construction	-81	-193	-56	-301
Corporate	-47	-40	-35	-140
Total	230	-772	364	1,606

Power Production • Revenue of NOK 1,015 million (875)

Q2'22 vs Q2'21

Increase mainly driven by Philippines and currency effects
Partly offset by Ukraine
Gross profit of NOK 810 million (808) and EBITDA of NOK 617 million (660):
Increased purchase of power in the Philippines to fulfil sales contracts
Opex increased currency effects, Ukraine, Argentina and nonrecurring cost

Develop. & Construction and Corporate

Strong focus on pipeline growth
Ramp-up of construction activities

A solid financial position

Group free cash of NOK 1,981 million
Available undrawn credit facilities NOK 1,830 million
Group* book equity of NOK 10,949 million
Agreed revised payment plan for the construction loan in Ukraine from Power China

(NOK million)	Consolidated	Project level	Group level*	Total prop.
Cash	3,784	1,809	1,981	3,790
Debt	-21,019	-13,039	-7,932	-20,972
Net debt	-17,234	-11,230	-5,952	-17,182

(*) Defined as 'recourse group' in the corporate bond and loan agreements, where restricted cash is excluded. ¹⁴

Consolidated financial position (NOK million)

Q2'22 movement of the Group's free cash

• Total liquidity available of NOK 3.8 billion (including undrawn credit facilities)

Movement of cash in 'recourse group' as defined in the corporate bond and loan agreements.

Scatec is starting construction projects with NOK 15.3 billion of capex

NOK 15.3 billion capex for 1.2 GW under construction;
Funded by NOK 10.3 billion of non-recourse project finance representing leverage of 67%
Scatec holding on average 50% of the equity;
Total Scatec equity of NOK 2.5 billion (NOK 2.0 billion remaining)
To be injected over an 18 month construction period
Total Development & Construction contract value of NOK 8.9 billion with an expected gross margin of 10-12% - in line with guidance

1.2 GW under construction Project capital structure – NOK billion

Power Production – Philippines Short-term impact by seasonality long-term asset values increasing

Q2'22 production 20% above 5-year average as expected
Production in 2H'22 expected to exceed contractual volumes, benefitting from continued high spot prices
Q3'22 production expected 25% above the five-year average and 45% above the same period last year
560 640 GWh (100% basis) / 280-320 GWh (proportionate basis)
Favourable hydrology and shift in product mix
Long-term asset values increasing capturing higher energy prices over time with a premium for flexibility

Quarterly power production – GWh (100%)

Guidance

Power Production1)	Q2'22	Q3'22	FY2022
Production - GWh	916	1,060-1,160	3,900 – 4,100
EBITDA - NOK million			2,500 – 2,700

25% above average production in the Philippines in Q3'22
FY2022 EBITDA increased by NOK 150 million reflecting currency exchange rate development

Development & Construction

Total contract value (revenues) of NOK 8.9 billion with an expected gross margin of 10-12%
D&C revenues based on "percentage of completion" progress following and "S-Curve" during 18-months construction period

Services & Corporate

Services 2022 EBITDA is expected in line with 2021. Corporate 2022 EBITDA is expected slightly below 2021

¹⁾ Proportionate production volume based on production from plants in operations at the end of Q2'22. EBITDA based on currency rates as per year end of Q2'22.

Power Production financials – proportionate

	Q2'22	Q1'22	Q2'21	2021
Power production (GWh)
Solar & Wind	523	527	456	2,002
Hydro the Philippines	135	100	111	729
Hydro Laos and Uganda	259	241	293	1,092
Total	916	868	860	3,823
Revenues (NOK million)
Solar & Wind	476	479	464	1,971
Hydro the Philippines	376	316	254	1,310
Hydro Laos and Uganda	163	138	156	608
Total	1,015	933	875	3,889
EBITDA (NOK million)
Solar & Wind	336	293	367	1,521
Hydro the Philippines	133	73	149	874
Hydro Laos and Uganda	148	124	143	554
Total	617	490	660	2,949

²⁰ Revenues from Power Production from 2021 has been adjusted due to change in accounting policy, disclosed in note 10 in Q2'22 report Revenues and EBITDA for Solar & Wind include other asset ownership expenses in the Power Production segment

Our asset portfolio

Plants in operation
	MW	interest
Theun Hinboun, Laos	525	20%
Magat, Philippines	388	50%
Benban, Egypt	380	51%
Upington, South Africa	258	46%
Bujagali, Uganda	255	28%
Quantum Solar Park, Malaysia	197	100%
Apodi, Brazil	162	44%
Progressovka, Ukraine	148	100%
Binga, Philippines	140	50%
Guanizuil IIA, Argentina	117	50%
Ambuklao, Philippines	105	50%
Kalkbult, South Africa	75	45%
Dreunberg, South Africa	75	45%
Agua Fria, Honduras	60	40%
Chigirin, Ukraine	55	100%
Boguslav, Ukraine	54	100%
Rengy, Ukraine	47	51%
Redsol, Malaysia	47	100%
Jordan, Jordan	43	62%
Linde, South Africa	40	45%
Mocuba, Mozambique	40	53%
Dam Nai, Vietnam	39	100%
Los Prados, Honduras	35	70%
Kamianka, Ukraine	32	61%
Czech, Czech Republic	20	100%
Maris Hydro, Philippines	9	50%
Asyv, Rwanda	9	54%
Total	3,355	52%

Under construction		Capacity MW	Economic interest
Kenhardt, South Africa Mendubim, Brazil Sukkur, Pakistan Release Total		540 531 150 45	51% 33% 75% 100%
		1,266	50%
Project backlog		Capacity MW	Economic interest
Tunisia		360	51%
South Africa		273	55%
Egypt	H 2	260	52%
Lesotho		20	48%
Philippines		20	50%
Total		933	53%

	Capacity MW	Share in %
Solar	6,298	43%
Wind	5,540	37%
Hydro	2,148	15%
P2X	500	3%
Release	300	2%
Total	14,786	100%

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