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Magnora ASA

Investor Presentation Mar 22, 2022

3659_rns_2022-03-22_ebabc41b-77b7-47ee-821c-cdb7142bde9a.pdf

Investor Presentation

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Corporate Presentation

March 2022

magnoraasa.com

ELECTRIC FUTURE

We invest in projects and companies to develop renewable energy solutions that will deliver clean energy to industries and consumers. Our aim is to be a leading international developer of renewable energy.

Continuing to develop utility-scale solar PV and enhancing technologies

Polysilicon 2021 year-end capacity and global demand

Source: Exawatt

  • USD 160bn market in 2020 after 90% drop in capex from 2010
  • Market is set to triple according to capacity increase by polysilicon suppliers from 2021-2023.
  • Fastest growing renewable electricity source, expected to double by 2024 according to polysilicon producers ‐ 42 countries reached at least 1 GW in 2020
  • Conventional solar cells have stalled after 60 years of development at ca 20% cell efficiency
  • Disruptive tandem technology enabled by Evolar (perovskite) can bring performance to 35% by 2030s
  • Large addressable markets where Magnora or portfolio companies are present

Established a strong position in the global offshore wind market

Global wind generation capacity scenarios (TW) Pursuing next generation market within renewables

  • 300 GW annual wind installations needed to get to Net Zero

  • Floating wind LCOE on track towards less than 50 Euro per MWh expected by end of this decade
  • ‐ Driven by maturing technology, scale, size, sites and more
  • Looking for joint development with strong (local) partners
  • ‐ OEMs and infrastructure funds looking into taking development risk in emerging/frontier markets
  • Magnora have vast experience from North Sea within oil & gas and offshore wind
  • ‐ Concepts, development, fatigue, motions, construction, finance and operations
  • Multiple GW experience from onshore wind in Norway, Sweden, Scotland, Wales as well as in multiple countries from gas, oil, hydro power and solar

Source: Vestas

Developing renewable projects to ready-to-build phase – Asset light business model - Originator

Continuous screening of new opportunities in solar and wind

  • Continuous screening of new early-stage renewables projects, and expansion of portfolio companies
  • Also looking at expansion possibilities within current land lease agreements
  • Added team capabilities brings in valuable knowledge and local know-how
  • Continued strong momentum in electricity prices shows great potential for valuecreation in current project portfolio and new opportunities

We are a renewables developer with high upside potential – accelerating growth at attractive cost organically (asset light) with a diversified portfolio

Ownership: ~80% 35%
Option to 50%
92% 40% 50%
Options to 63.5%
Segment: Offshore Wind Offshore Wind Onshore Wind
and Solar
Solar Solar Tech
Portfolio: 500 MW 500 MW 1,700 MW 1,300 MW 2 joint development
agreements –
more
coming
Location: Scotland/
TechnipFMC JV
Sweden South Africa Sweden Sweden

Progressing towards project milestones

n
y
o
n
pti
pa
escri
m
o
C
d

Offshore Wind development
company in collaboration with
TechnipFMC

Awarded option agreement to
develop approx. 500 MW in
ScotWind licensing round in
January 2022

Shallow water offshore wind
project, with 35% ownership
and option to increase to 50%

located
500 MW offshore wind
8 –
15 kilometers off the coast
of southern Sweden

Solar and wind development
company in South Africa, with
African Green Ventures (AGV)

Greenfield development
portfolio of ca 1.700 MW wind
and solar PV with growth
potential within land lease

Greenfield developer of large
projects in the
scale solar PV
Nordics, with 40% ownership

Land-lease agreements for 29
projects with a
total capacity
of approx. 1.3 GW

Recurring revenue model of
solar and storage projects

Disruptive solar
PV efficiency
enhancing perovskite
technology to be
commercialized.

Own 50% -
Option up to 63.5%

Efficiency gain of up to 75%
compared to traditional cells
over the next decade
es
n
ext
o
est
N
mil

Applications for licensing
rounds in Norway and UK,
including 700 MW in the Celtic
Sea in collaboration with
Hiraeth Energy

New Business Development

ScotWind
clearing round
potential upside

Application for license to build
and operate the wind farm is
under preparation

Grid application submitted

Swedish government examines
financial compensation for host
municipalities

Peter Nygren joins AGV

Land lease agreements
Wind measurement, 6 months

of data collected

Grid appl. submitted -
Eskom

Corp PPAs

50-250 MW solar PV in Ready
to-Build phase by end of 2022

Sale of new of projects to long
term owners and operators
Expansion
into new countries


Battery/storage in projects

3
GW pipe in Sweden at YE'23

Sell 200 & 600 MW in '22 & '23

Sell to IPP or IPO

Commercial
testing, and scale
up of the technology
Prototype production in

Uppsala 1MW per year

New Joint Development
Agreements

Commercial agreement
IPO

Growing an asset-light wind and solar development portfolio

  • Magnora have maintained a high activity, progressing development of portfolio companies, e.g. Scotland and South Africa
  • Development portfolio have grown sixfold net in the last two years to 4.0 GW combined solar and wind gross capacity YTD'22
  • ‐ Equity share of capacity of 2.8 GW

Example option agreements:

  • ‐ Solar PV enhancing tech
  • ‐ Magnora is developing a concept for a green maritime fuel production facility in Tromsø with Prime Capital and Troms Kraft
  • ‐ Magnora has a 98 MW onshore wind project under development RWE Renewables in Norway
  • Technology company Evolar AB adds to the development portfolio
  • In addition, we are considering entry into two new Northern European countries with solar PV. Similar set-up as with Helios
  • Magnora Offshore Wind entered agreement with a local team in Wales and considers options in the ScotWind Clearing Round in Q32022
  • Development activities supported by FPSO royalty income

Maintaining a robust capital discipline going forward

Eventful year ending with NOK 97 million cash balance 2021 cash flow

  • Total license revenue of NOK 14 million in 2021 from Dana
  • Other operational cash flow of negative NOK 38 million
  • Sale of marketable securities of NOK 19 million
  • NOK 59 million used in M&A activities
  • Capital increase of NOK 115 million through private placement in February 2021
  • Expected USD ~16 million contribution from Penguins FPSO in 2022

NOK million 45 97 14 38 19 Cash, Dec 31. 2020 License revenue Capital increase Sale of marketable securities Operations M&A Cash, Dec 31. 2021 59 115 NOK -5 million

Magnora'stechnology company - Evolar AB, Uppsala, Sweden

Introduction Video (evolarab.se)

www.magnoraasa.com

Evolar History

EV@LAR

Experience from industrializing solar technology

Evolar is competitive

Unmatched track record and team competence

World-leading thin film technology achievements

Unique R&D lab and prototype line

$10 + \text{years}$ experience from mass production

Verified technology platform and turnkey sales

Evolar´s perovskite tandem technology can potentially boost performance to low 30s by over the next decade. Silicon has stalled after 70 year of development.

Evolar´s efficiency roadmap

A tandem solar cell is more efficient at harvesting solar

Premium product and pricing power

Pricing power of premium solar panels +50%

EU Spot market module prices by technology EUR / Wp

  • Premium products can be priced 50% higher per watt compared to mainstream
  • Premium products are characterized by $\bullet$
  • best in class power yield over lifetime
  • attractive appearance
  • Best in class power yield is achieved by $\bullet$
  • high light to power conversion rate (high efficiency)
  • low degradation rate
  • bifaciality (ability to capture light from front and rear side of the panel)

Development supported by cash flow from legacy FPSO assets

License from Penguins FPSO in 2022 USD million

  • Financial benefits from two licensing agreements after divesting Oil and Gas assets in 2018
  • Royalty income of USD 0.5 for each barrel produced and offloaded from the Western Isles FPSO, owned and operated by Dana Petroleum, throughout lifetime of the asset
  • License income of approximately USD ~16 million from Shell's Penguins FPSO project in 2022
  • ‐ USD ~8 million: Sail-away from yard
  • ‐ USD ~4 million: First production
  • ‐ USD ~4 million: Production of first 4 Mmboe

2021 Key figures

  • Revenues mainly reflect license income from agreement with Dana
  • ‐ Decrease reflecting less offloading than normal
  • ‐ Expect further development activity and increased revenues at end of 2H of 2022.
  • ‐ 50 cent/barrel for the remaining life of hull (expected life hull above 30 years)
  • Higher operating costs from business and development activities audit, IFRS/option costs
  • Cash flow affected by
  • ‐ Increased ownerships and investment with development of Magnora Offshore Wind (MOW), Helios, Magnora South Africa (MSA) and Evolar
  • ‐ New Business Development activity in order to increase development portfolio
  • Maintaining a high equity ratio. Also a 100 MNOK credit facility undrawn with Tier 1 Nordic bank (from mid March 2022 up from 50 MNOK previously)
  • Third -party value assessment to be disclosed quarterly, starting Q2'22 will reduce non -cash effect on P&L

1) excludes development and M&A related expenses, and non -cash items and adjustments, such as options related expenses.

In position to invest in new opportunities and ongoing projects

High ambitions for future growth and outlook

Development portfolio ambition by 2025 GW, Equity share

  • Large potential in growing global offshore wind market, with proven capabilities in Magnora Offshore Wind, Helios etc.
  • Origination at attractive cost and very competitive operating model with competent team
  • Solar PV is the fastest growing renewable source, and solar PV enhancing technology set to play an important role in the renewables shift
  • Considering near-term expansion into new countries with solar PV and offshore wind
  • Energy security will accelerate monetization and opportunities for our portfolio companies and projects

Appendix

Extensive energy and renewables project track record …

Erik Sneve CEO

  • 24 years experience from VC industry/investments markets EY, DnB Markets
  • Statkraft, Eidsiva and Hafslund JV, Investment Director Tore Tønne, Torstein Tvenge.
  • COO software company mobile and healthcare
  • Chairman Evolar, Board member Helios and MGN South Africa, Magnora Offshore Wind and COO of 3D Mobile & Healthcare Software
  • B.Sc. in Finance from Arizona State University w/ Summa Cum Laude Dean's list

Haakon Alfstad EVP Projects

  • With Statkraft since 1987 as SVP for Wind Power on-/offshore 2008-17
  • Responsible for construction phase of all Statkraft's hydro, onshore wind and solar power projects 2017-19, and responsible for wind power developments of >1 GW installed capacity and large scale M&A projects
  • Master's degree Mechanical Engineering from NTH and Business Candidate from BI

Peter Nygren Special Advisor, Active owner in Helios and AGV

  • CEO and co-founder of Arise
  • More than 30 years of experience from renewable energy and companies in related industries, with previous employment at Vattenfall AB, SCA AB, and United Waters AG
  • MBA from Uppsala University

Bård Olsen

CFO

  • Previous Vice President of Global Compliance in MHWirth
  • 9 years in total with Aker Group companies, incl. Head of Internal Audit at Aker Solutions, prev. with EY
  • Experience from auto Industry in the US
  • M.Sc.: Finance and MBA from Arizona State University

Torstein Sanness

Executive Chairman

  • Experience as MD of Lundin Petroleum Norway and DNO, and from several executive positions during his 25 years at Saga Petroleum
  • Board member Lundin Energy, IPC, Panoro Energy, Dr. Techn. Olav Olsen, TGS, previously Chairman of Lundin Petroleum Norway
  • Master's degree in Engineering (geology, geophysics & mining engineering) from NTH

Espen Erdal

VP Business Development

  • 10 years renewable energy and structural engineering experience
  • Previous employment at DNV GL and Dr.Ing A.Aas Jakobsen
  • Extensive experience in supporting project transactions (due diligence), development and construction of utility scale onshore wind projects in the Nordics
  • Master's degree in Engineering (renewables and structural engineering) from NTNU, Norway and University of Berkeley, California

… leading Magnora's green transition

Gisle Grønlie EVP Legal and M&A

  • Previous Legal Director at TechnipFMC UK, Norway, and Russia
  • Previous Legal head of internal fleet and Statoil Projects
  • Legal Support New Energy Ventures (wave tech, hydrogen, and fish farming)
  • Supported R&D and Joint Intellectual Program initiatives like 'All Electric Subsea XT'
  • Cand Jur from Oslo

Bjørn Drangsholt

External advisor, offshore wind projects

  • Extensive experience from various management positions, both in projects and in line organisations at Norsk Hydro, Naturkraft, Statoil and Statkraft Board positions in Alltwallis Windfarm, Berry Burn Windfarm and Baillie Windfarm Ltd
  • Master's degree in electrical & power engineering from the Norwegian Institute of Technology (NTNU)

Kristin Gjertsen

CEO, Magnora Offshore Wind AS

  • Previous AkerBP, Exxon, Accenture, Norsk Hydro/Equinor and Microsoft
  • Over 25 years of experience from the energy sector
  • Experience from aluminum, agri, shipping and retail market
  • Field development, strategy, licensing processes and turnarounds
  • M.Sc. NTNU and MBA Norwegian School of Economics

• Executive Master in Energy Management (BI/IFP/ESCP) and MSc. Mechanical Engineering (NTNU)

Emilie Schjøtt Brackman VP Wind & Solar

Trond Gärtner

SVP Business Development

  • Extensive renewable project experience with combined 1.3 GW onshore and offshore wind and solar PV
  • Previous manager for DNV GL, with experience from project management and technical due diligence in offshore projects Europe, Taiwan and WindFloat Atlantic
  • B.Sc. Mech Engineering Toulouse, and MSc Naval Architect Newcastle, UK.

Bjørn Sund

External advisor, offshore wind and hydrogen plants

• Over 20 years of experience from the renewable energy sector

• Several leading development project positions including Development Strategy Manager (Sørlige Nordsjø II offshore wind), VP Project Development Onshore Wind (Statkraft), Programme Manager (Forewind Ltd), Project Manager (Fosen Wind)

  • Decades of experience from field development and Norwegian offshore licensing processes
  • Johan Sverdrup and Troll Head of Field Development
  • Has worked across areas such as field development, Head of R&D for Norsk Hydro working with electrolysers (NEL), hydrogen and ammonia
  • Master Degree in Chemical Engineering from The Norwegian Institute of Technology (NTNU)

Reported financials

Group consolidated statement of profit and loss

NOK million Note 2021 2020
Operating revenue 24 13.8 27.1
Other operating revenue 24 1.4 1.3
Total operating revenue 15.2 28.4
Employee benefit expense 16, 18 $-20.4$ $-13.2$
Profit/Loss from associated companies $\overline{7}$ $-21.6$ $-0.9$
Other operating expense 25, 26 $-33.3$ $-8.2$
Total operating expense $-75.3$ $-22.3$
Operating Profit/(loss) $-60.1$ 6.1
Financial income 19 22.4 25.1
Financial expense 19 $-17.4$ $-4.9$
Foreign exchange gain/(loss) 0.0 7.8
Net financial profit/(loss) 5.0 28.0
Profit/(loss) before tax $-55.1$ 34.1
Tax income/(expense) 15 $-7.7$ $-5.6$
Annual net Profit/(loss) $-62.8$ 28.5
NOK million Note 2021 2020
Net profit/(loss) continued operations $-62.8$ 28.5
Net profit/(loss) attributable to equity holders $-62.8$ 28.5
Earnings per share for profit/(loss) attributable to the equity holders of the Company during the year (NOK per share):
Basic 20 $-1.11$ 0.54
Diluted 20 $-1.11$ 0.54

Group consolidated cash flow statement

NOK million 2021 2020
Cash flow from operating activities
Cash from operations
22
$-23.7$ 29.9
Net cash generated from operating activities $-23.7$ 29.9
Cash flows from investment activities
Purchase of associated companies $-77.4$ $-25.4$
Sale of associated companies 20.0 0.0
Purchase/sale of marketable securities 18.9 0.0
Loan to Arendal Brygge AS $-1.2$ 0.0
Net cash from investment activities $-39.7$ $-25.4$
Cash flow from financing activities
Capital distribution 0.0 $-17.4$
Treasury shares 0.0 $-0.6$
Capital increase 115.4 0.0
Net cash from financing activities 115.4 $-18.0$
Net cash flow from the period 52.0 $-13.5$
Cash balance at beginning of period 44.8 58.3
Cash balance at end of period* 96.9 44.8

Reported financials

NOK million Note 31.12.21 31.12.20
ASSETS
Non-current assets
Deferred tax assets 15 23.4 31.1
Intangible assets 2.0 0.0
Investment in associated companies 7 61.4 24.5
Other non-current assets 23 1.3 0.0
Total non-current assets 88.1 55.6
Current assets
Trade and other receivables 8,9,10,23 6.8 4.0
Other current financial assets 8,27,28 0.9 19.6
Cash and cash equivalents 8,9,11 96.9 44.8
Total current assets 104.6 68.4
Total assets 192.7 124.1

Group consolidated statement of financial position: Assets Group consolidated statement of financial position: Equity & Liabilities

NOK million Note 31.12.21 31.12.20
EQUITY
Capital and reserves attributable to equity holders of the Company
Share capital 12 28.0 25.8
Treasury shares $-0.1$ $-0.1$
Other equity 143.9 92.4
Total equity 171.8 118.1
LIABILITIES
Current liabilities
Trade payables 8 1.9 0.8
Provisions 17 2.3 3.9
Other current liabilities 14,25 16.7 1,3

Shareholders

Investor Number of shares % of top 20 % of total
GINNY INVEST AS 2,469,144.00 9.35 4.33
KING KONG INVEST AS 2,400,995.00 9.09 4.21
CARE HOLDING AS 2,000,000.00 7.57 3.50
BEKKESTUA EIENDOM AS 1,791,860.00 6.78 3.14
ALDEN AS 1,729,829.00 6.55 3.03
PHILIP HOLDING AS 1,648,377.00 6.24 2.89
ANDENERGY AS 1,558,140.00 5.90 2.73
F1 FUNDS AS 1,468,121.00 5.56 2.57
INTERACTIVE BROKERS LLC 1,406,307.00 5.32 2.46
F2 FUNDS AS 1,374,000.00 5.20 2.41
NORDNET LIVSFORSIKRING AS 1,326,549.00 5.02 2.32
MP PENSJON PK 1,127,138.00 4.27 1.97
ALTEA PROPERTY DEVELOPMENT AS 1,054,944.00 3.99 1.85
AARSKOG PHILIP GEORGE 1,000,000.00 3.78 1.75
VERDIPAPIRFONDET DNB SMB 838,950.00 3.18 1.47
BAKLIEN ÅSMUND 756,100.00 2.86 1.32
CLEARSTREAM BANKING S.A. 714,235.00 2.70 1.25
BILL INVEST AS 621,152.00 2.35 1.09
THE NORTHERN TRUST COMP, LONDON BR 583,901.00 2.21 1.02
SJØLUND STIAN 551,000.00 2.09 0.97
Total number owned by top
20
26,420,742.00 46.29
Total number of shares 57,072,679.00 100.00

Value Journey On-shore Wind (and solar) Power*

*Solar PV similar but simpler. Multiples from 0.4 MNOK to 1.5 MNOK. Many markets environmental impact assessment (EIA) not needed.

Value Creation Journey Offshore Wind from Deloitte

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.

No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company, any advisor or any such persons' officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this presentation. The information herein is subject to change, completion, supplements or amendments without notice.

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.

This complete presentation is for informational purposes only and does not constitute an offer to sell shares in of the Company. This presentation is not a prospectus, disclosure document or offering document and does not purport to be complete. Nothing in this presentation should be interpreted as a term or condition of any future transaction. The presentation is strictly confidential and may bot not be reproduced or redistributed, in whole or in part, to any other person.

This presentation has not been reviewed or approved by any regulatory authority or stock exchange. The (re)distribution of this presentation and/or any prospectus or other documentation into jurisdictions other than Norway may be restricted by law. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to acquire any securities offered by any person in any jurisdiction in which such an offer or solicitation is unlawful. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such restrictions.

The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice.

Any investment in the Company involves inherent risks and is suitable only for investors who understand the risks associated with this type of investment and who can afford a loss of all or part of the investment. Investors should carefully review the summary of risk factorsset out in the following slides before making any investment decision.

The presentation and any purported liability in connection with it is subject to Norwegian law and is subject to the exclusive jurisdiction of the Norwegian courts.

Magnora ASA Karenslyst Allé 2, 2nd floor 0277 OSLO magnoraasa.com

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