EAM Solar

Investor Presentation • Nov 14, 2017

EAM SOLAR ASA THIRD QUARTER 2017

14 November 2017

AGENDA

1.Operations YTD

• 1. Third quarter and nine months 2017 review
• 1. Financial guidance
• 1. Legal status update
• 5.Q&A

OPERATIONS YTD

Nine months power production of 11,153 MWh, representing approximately 88% of full year expected production.

FY estimated power production of 13,100 MWh, generating revenues of approximately EUR 4.1 million.

Theft of modules in South Italy affected production in third quarter. Module replacement and improved security measures in implementation.

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec P10 P50 P90 2016 2015 2014 2013 2017

MWh Annual accumulated power production 2013 - 2017

THIRD QUARTER AND NINE MONTHS 2017 REVIEW

Main events in the third quarter

• Extraordinary shareholder meeting in August.
• Litigation activity included in corporate bylaws.
• Acquisition of royalty rights from manager.
• Equity rights issue of NOK 30 million executed.
• Implementation of Therium Litigation Funding Agreement (LFA).
• Aveleos FY 2016 annual accounts published.

Operations & litigation

• Nine months operations with positive EBITDA of EUR 1.8 million.
• Litigation costs of EUR 1.5 million, of which EUR 191 thousand are covered by the LFA (effective since July 2017).

Third quarter one-off non-cash effects of EUR 6.1 million

• Write down of EUR 4.4 million in net receivables position against Aveleos SA following assessment of Aveleos annual accounts 2016 as received in the third quarter.
• Acquisition of managers royalty rights against issuance of shares at a subscription price of NOK 32.76 per share results in accounting cost of EUR 1.881 million

	Unaudited	Unaudited	Unaudited	Unaudited
EUR 000'	Q3 2017	Q3 2016	9M 2017	9M 2016
Revenues	1340	1346	3534	3761
Cost of operations	(218)	(224)	(496)	(1019)
Sales, general and administration expenses	(543)	(359)	(1186)	(1 2 1 1)
Legal costs	(7166)	(8471)	(7967)	(10028)
EBITDA	(6587)	(7708)	(6115)	(8497)
Depreciation, amortizations and write downs	(427)	(1014)	(1281)	(6261)
EBIT	(7014)	(8722)	(7396)	(14757)
Net financial items	(669)	649	(722)	(2600)
Profit before tax	(7683)	(8073)	(8118)	(17357)
Income tax gain/(expense)	37	12	3	30
Net income	(7647)	(8062)	(8115)	(17327)
Earnings per share (fully diluted):	(1.34)	(1.59)	(1.54)	(3.42)
Distribution to shareholders per share
Dividend yield	0.0%	0.0%	0.0%	0.0%
Million no. of shares (fully diluted)	5.71	5.07	5.28	5.07
EBITDA adjusted	579	763	1852	1531

FINANCIAL GUIDANCE

The financial guidance contains uncertainty and will change, but represents current best estimate.

• Net cash and cash equivalents YE 2017 of approximately 3.3 million
• Normal operations 2018 yields an EBITDA of approximately EUR 2.3 million.
• Total debt service in 2018 of EUR 1.36 million.
• Free cash flow to cover litigation costs from operations of approximately EUR 1 million.

Funds available to cover full litigation costs in foreseeable future secured in the third quarter.

• Gross litigation costs 2018 expected in the range EUR 1.75 million to 2.2 million in 2018. FY 2018 litigation cost guidance is net of expected litigation investment by Therium.
• Remaining gross contract revenues to 2031 of approximately EUR 54 million. Free cash flow excluding litigation costs, but after debt service, of approximately EUR 18 million to 2031.

EURm	2017 FY prognosis	2018 FY guidance	2018 Excl.litigation	2018 - 2031 excl. litigation
				EURm	NOKm
Power production (MWh)	13 106	13 244	13 244	172 178	172 178
Revenues	4,133	4,171	4,171	54,227	512,444
FIT	3,510	3,537	3,537	45,979	434,500
RID	0,622	0,634	0,634	8,248	77,944
Operating costs	-10,387	-3,227	-1,837	-19,333	-182,693
Cost of operations	-0,674	-0,637	-0,637	-6,700	-63,311
Sales, General & Administration	-1,307	-1,201	-1,201	-12,633	-119,382
Litigation costs	-8,405	-1,389
Non-cash items	6,404
Adjusted EBITDA	0,150	0,945	2,334	34,894	329,751
Debt service	-1,406	-1,357	-1,357	-16,829	-159,037
Interest costs	-0,780	-0,700	-0,700	-5,232	-49,444
Instalments	-0,626	-0,657	-0,657	-11,597	-109,593
Net cf	-1,256	-0,412	0,978	18,065	170,713
Net cash & receivables YE	3,334	3,270		3,270	30,904

LEGAL STATUS UPDATE

Main headlines in the third quarter

Criminal court of Milan

• 5 court hearings occurred so far (20 Jun, 19 Sep, 17 Oct, 2 Nov and 13 Nov). All have included examinations of prosecution witnesses.
• 22 court hearings planned between 21 Nov 2017 and 19 July 2018.
• First EAM witnesses expected to be called for examination in December (4 or 19 Dec).

Arbitration proceedings in Milan

• Arbitration proceedings still in preliminary stage due to motions from Aveleos
• Timeline of proceedings uncertain at this point in time

(Further comments given orally reflecting company reporting)

QUESTIONS AND ANSWERS

EAM SOLAR ASA

Dronningen 1 NO-0287 Oslo NORWAY

Phone: +47 2411 5716 E-mail: viktor@eam.no Web: www.eam.no