Scatec ASA

Annual Report (ESEF) • Apr 1, 2025

Scatec Annual Report 2024 5967007LIEEXZXIARK36 2024-01-01 2024-12-31 5967007LIEEXZXIARK36 2024-12-31 5967007LIEEXZXIARK36 2023-12-31 5967007LIEEXZXIARK36 2023-01-01 2023-12-31 5967007LIEEXZXIARK36 2022-12-31 5967007LIEEXZXIARK36 2022-12-31 ifrs-full:IssuedCapitalMember 5967007LIEEXZXIARK36 2023-01-01 2023-12-31 ifrs-full:IssuedCapitalMember 5967007LIEEXZXIARK36 2023-12-31 ifrs-full:IssuedCapitalMember 5967007LIEEXZXIARK36 2022-12-31 ifrs-full:SharePremiumMember 5967007LIEEXZXIARK36 2023-01-01 2023-12-31 ifrs-full:SharePremiumMember 5967007LIEEXZXIARK36 2023-12-31 ifrs-full:SharePremiumMember 5967007LIEEXZXIARK36 2022-12-31 ifrs-full:RetainedEarningsMember 5967007LIEEXZXIARK36 2023-01-01 2023-12-31 ifrs-full:RetainedEarningsMember 5967007LIEEXZXIARK36 2023-12-31 ifrs-full:RetainedEarningsMember 5967007LIEEXZXIARK36 2022-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 5967007LIEEXZXIARK36 2023-01-01 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 5967007LIEEXZXIARK36 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 5967007LIEEXZXIARK36 2022-12-31 ifrs-full:ReserveOfGainsAndLossesOnHedgingInstrumentsThatHedgeInvestmentsInEquityInstrumentsMember 5967007LIEEXZXIARK36 2023-01-01 2023-12-31 ifrs-full:ReserveOfGainsAndLossesOnHedgingInstrumentsThatHedgeInvestmentsInEquityInstrumentsMember 5967007LIEEXZXIARK36 2023-12-31 ifrs-full:ReserveOfGainsAndLossesOnHedgingInstrumentsThatHedgeInvestmentsInEquityInstrumentsMember 5967007LIEEXZXIARK36 2022-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 5967007LIEEXZXIARK36 2023-01-01 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 5967007LIEEXZXIARK36 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 5967007LIEEXZXIARK36 2022-12-31 ifrs-full:NoncontrollingInterestsMember 5967007LIEEXZXIARK36 2023-01-01 2023-12-31 ifrs-full:NoncontrollingInterestsMember 5967007LIEEXZXIARK36 2023-12-31 ifrs-full:NoncontrollingInterestsMember 5967007LIEEXZXIARK36 2024-01-01 2024-12-31 ifrs-full:IssuedCapitalMember 5967007LIEEXZXIARK36 2024-12-31 ifrs-full:IssuedCapitalMember 5967007LIEEXZXIARK36 2024-01-01 2024-12-31 ifrs-full:SharePremiumMember 5967007LIEEXZXIARK36 2024-12-31 ifrs-full:SharePremiumMember 5967007LIEEXZXIARK36 2024-01-01 2024-12-31 ifrs-full:RetainedEarningsMember 5967007LIEEXZXIARK36 2024-12-31 ifrs-full:RetainedEarningsMember 5967007LIEEXZXIARK36 2024-01-01 2024-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 5967007LIEEXZXIARK36 2024-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 5967007LIEEXZXIARK36 2024-01-01 2024-12-31 ifrs-full:ReserveOfGainsAndLossesOnHedgingInstrumentsThatHedgeInvestmentsInEquityInstrumentsMember 5967007LIEEXZXIARK36 2024-12-31 ifrs-full:ReserveOfGainsAndLossesOnHedgingInstrumentsThatHedgeInvestmentsInEquityInstrumentsMember 5967007LIEEXZXIARK36 2024-01-01 2024-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 5967007LIEEXZXIARK36 2024-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 5967007LIEEXZXIARK36 2024-01-01 2024-12-31 ifrs-full:NoncontrollingInterestsMember 5967007LIEEXZXIARK36 2024-12-31 ifrs-full:NoncontrollingInterestsMember iso4217:NOK iso4217:NOK xbrli:shares 136 Group Consolidated Financial statements and notes Consolidated statement of profit or loss 137 Consolidated statement of comprehensive income 137 Consolidated statement of financial position 138 Consolidated statement of changes in equity 139 Consolidated statement of cash flow 140 General information Note 1 Basis for preparation and corporate information 141 Statement of profit or loss (and comprehensive income) Note 2 Operating segments 142 Note 3 Employee benefits 145 Note 4 Other operating expenses 145 Note 5 Tax 146 Note 6 Financial income and expenses 148 Note 7 Earnings per share 148 Note 8 Sale of project assets and disposal group held for sale 148 Statement of financial position Note 9 Property, plant and equipment 150 Note 10 Impairment testing 151 Note 11 Goodwill and intangible assets 153 Note 12 Leases 153 Note 13 Investments in joint venture and associated companies 155 Note 14 Trade receivables 158 Note 15 Cash and cash equivalents 158 Note 16 Other non-current and current asset 158 Note 17 Other non-current and current liabilities 158 Note 18 Legal disputes and contingencies 159 Financial risk and capital management Note 19 Financial risk and capital management 159 Note 20 Financial instruments 161 Note 21 Derivative financial instruments 163 Note 22 Financing 165 Note 23 Non-recourse financing 166 Note 24 Trade payables and supplier finance 168 Note 25 Guarantees and commitments 168 Other information Note 26 Consolidated subsidiaries 169 Note 27 Non-controlling interests 170 Note 28 Transactions with related parties 172 Note 29 Changes in accounting policies 172 Note 30 Subsequent events 173 Consolidated financial statements Group Scatec ASA - Annual Report 2024 137 Consolidated statement of profit and loss 1 JANUARY - 31 DECEMBER NOK million Note 2024 2023 Revenues 2 4,368 3,399 Net gain/(loss) from sale of project assets and divestments 8, 13 1,491 1,276 Net income/(loss) from JVs and associated companies 2, 13 714 46 Total revenues and other income 6,574 4,721 Personnel expenses 3 -495 -570 Other operating expenses 4 -658 -584 Depreciation, amortisation and impairment 9, 11, 12, 10 -1,294 -942 Operating profit (EBIT) 4,127 2,625 Interest and other financial income 6 185 415 Interest and other financial expenses 6 -2,673 -1,977 Net foreign exchange gain/(loss) 19, 6 -175 -56 Net financial expenses -2,663 -1,617 Profit/(loss) before income tax 1,464 1,008 Income tax (expense)/benefit 5 22 114 Profit/(loss) for the period 1,486 1,122 Profit/(loss) attributable to: Equity holders of the parent 1,309 628 Non-controlling interest 27 177 494 Basic earnings per share (NOK) 7 8.24 3.95 Diluted earnings per share (NOK) 7 8.24 3.95 Consolidated statement of comprehensive income 1 JANUARY - 31 DECEMBER NOK million Notes 2024 2023 Profit/(loss) for the period 1,486 1,122 Other comprehensive income: Items that may subsequently be reclassified to profit or loss Net movement of cash flow hedges 21 61 -292 Income tax effect from net movement of cash flow hedges 5 -5 69 Foreign currency translation differences 783 194 Net other comprehensive income to be reclassified 839 -30 Total comprehensive income for the year, net of tax 2,325 1,092 Attributable to: Equity holders of the parent 1,913 704 Non-controlling interest 27 412 389 138 Consolidated financial statements Group Consolidated statement of financial position NOK million Note 31 December 2024 31 December 2023 Assets Non-current assets Deferred tax assets 5 1,551 1,226 Property, plant and equipment 9 24,068 22,035 Goodwill and intangible assets 11 560 717 Investments in JVs and associated companies 13 11,451 12,368 Other non-current financial assets 20, 21 365 299 Other non-current assets 16, 28 163 265 Total non-current assets 38,158 36,911 Current assets Trade and other receivables 14 487 478 Other current financial assets 20, 21 36 16 Other current assets 16, 28 907 1,150 Cash and cash equivalents 15 3,890 3,101 Assets classified as held for sale 8 2,264 138 Total current assets 7,584 4,884 Total assets 45,742 41,795 Oslo, 31 March 2025 The Board of Directors Scatec ASA NOK million Note 31 December 2024 31 December 2023 Equity and liabilities Equity Paid in capital Share capital 7 4 4 Share premium 9,876 9,847 Total paid in capital 9,880 9,851 Other equity Retained earnings -603 -1,911 Other reserves 1,351 747 Total other equity 748 -1,164 Non-controlling interests 27 2,136 1,884 Total equity 12,764 10,570 Non-current liabilities Deferred tax liabilities 5 671 849 Corporate financing 22 6,729 7,947 Non-recourse project financing 23 16,929 15,026 Other financial liabilities 20, 21 423 179 Other interest-bearing liabilities 22 - 247 Other non-current liabilities 17, 28 1,393 1,343 Total non-current liabilities 26,145 25,590 Current liabilities Corporate financing 22 2,150 1,132 Non-recourse project financing 23 1,900 1,931 Income tax payable 5 57 48 Trade payables and supplier finance 24 481 294 Other financial liabilities 20, 21 64 41 Other interest-bearing liabilities 22 500 - Other current liabilities 17, 28 1,281 2,060 Liabilities directly associated with assets classified as held for sale 8 401 129 Total current liabilities 6,833 5,635 Total liabilities 32,978 31,225 Total equity and liabilities 45,742 41,795 Consolidated financial statements Group Scatec ASA - Annual Report 2024 139 Consolidated statement of changes in equity Other reserves NOK million Note Share capital Share premium Retained earnings Foreign currency translation Hedging reserves Total Non-controlling interests Total equity At 1 January 2023 4 9,819 -2,231 472 199 8,263 540 8,803 Profit for the period - - 628 - - 628 494 1,122 Other comprehensive income - - - 241 -166 75 -105 -30 Total comprehensive income - - 628 241 -166 704 389 1,092 Share-based payment 3 - 28 - - - 28 - 28 Dividend distribution 7 - - -308 - - -308 -121 -429 Capital increase from NCI 27 - - - - - - 1,076 1,076 At 31 December 2023 4 9,847 -1,911 713 34 8,686 1,884 10,570 At 1 January 2024 4 9,847 -1,911 713 34 8,686 1,884 10,570 Profit for the period - - 1,309 - - 1,309 177 1,486 Other comprehensive income - - - 608 -4 604 235 839 Total comprehensive income - - 1,309 608 -4 1,913 412 2,325 Share-based payment 3 - 29 - - - 29 - 29 Dividend distribution 7 - - - - - - -395 -395 Capital increase from NCI 27 - - - - - - 236 236 At 31 December 2024 4 9,876 -603 1,321 30 10,628 2,136 12,764 140 Consolidated financial statements Group Consolidated statement of cash flow NOK million Notes 2024 2023 1) Cash flow from operating activities Operating profit (EBIT) 4,127 2,625 Depreciation and impairment 9 1,294 942 Net income from JVs and associated companies 13 -714 -46 Net gain from sale of project assets 8 -1,491 -1,276 Taxes paid 5 -162 -261 Net proceeds from sale of fixed assets 2 68 Increase/(decrease) in trade and other receivables -9 18 Increase/(decrease) in trade and other payables 67 -422 Increase/(decrease) in other assets and liabilities 1) 14 551 Net cash flow from operating activities 3,128 2,200 Cash flow from investing activities Investments in property, plant and equipment 1) -3,268 -7,344 Proceeds from sale of project assets, net of cash disposed 8 407 390 Distributions from JVs and associated companies 13 1,176 457 Investments in JVs and associated companies 13 -77 -447 Interest received 6 185 170 Net cash flow used in investing activities -1,578 -6,774 NOK million Notes 2024 2023 1) Cash flow from financing activities Proceeds from non-recourse project financing 23, 20 3,953 6,038 Proceeds from corporate financing 22, 20 1,702 713 Proceeds from other interest-bearing liabilities 22 212 - Proceeds received under supplier finance arrangements 1) 24 286 3,427 Repayment of non-recourse project financing 23, 20 -1,649 -1,818 Repayments of corporate financing 22, 20 -2,615 -110 Repayment under supplier finance arrangements 1) 24 -241 -3,244 Interest paid 20 -2,334 -1,962 Dividends paid to equity holders of the parent company and non- controlling interests -395 -429 Proceeds from equity injections from non-controlling interests 112 944 Repayments to non-controlling interests -52 -35 Payments of principal portion on lease liabilities 12 -22 -21 Interest paid on lease liabilities 12 -26 -27 Net cash flow from financing activities -1,068 3,477 Net increase/(decrease) in cash and cash equivalents 482 -1,097 Effect of exchange rate changes on cash and cash equivalents 340 78 Cash transferred to assets held for sale -33 -12 Cash and cash equivalents at beginning of the period 3,101 4,132 Cash and cash equivalents at end of the period 15 3,890 3,101 Bank deposits not available for use by the Group 135 88 1) Following the changes in 2024 to IAS 7 Statement of cash flow and IFRS 7 Financial instruments, cash flows from supplier finance arrangements are presented separately as part of financing activities in the cash flow. The changes impact line items 'Investments in property, plant and equipment', 'Increase/(decrease) in trade and other payables' and 'Increase/(decrease) in other assets and liabilities'. Comparable numbers are correspondingly updated. Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 141 Notes to the Group consolidated financial statements Note 1 Basis for preparation and corporate information Scatec ASA is incorporated and domiciled in Norway . The address of its registered office is Askekroken 11, NO-0277 Oslo, Norway . Scatec ASA was established on 2 February 2007. Scatec ASA (“the Company”) and its subsidiaries and investments in associated companies and joint ventures (“the Group” or “Scatec”) is a leading renewable energy solution provider, accelerating access to reliable and affordable clean energy in high growth markets. The consolidated financial statements comprise the financial statements of the parent company Scatec ASA and its subsidiaries as of 31 December 2024. The Company is listed on the Oslo Stock Exchange under the ticker symbol “SCATC”. The consolidated financial statements for the full year 2024 were authorised for issue in accordance with a resolution by the Board of Directors on 1 April 2025. Basis for preparation The Scatec Group’s consolidated financial statements have been prepared in accordance with IFRS® Accounting Standards as adopted by the EU (IFRS). In compliance with the Norwegian Accounting Act, additional disclosure requirements are included in the notes to the financial statements of Scatec ASA. The statement of cash flows is prepared under the indirect method. The segment financials are reported on a proportionate basis in line with how the management team assesses the segments performance, refer to Note 2 Operating segments. The functional currency of the companies in the Group is determined according to the nature of the primary economic environment in which each company operates. The consolidated financial statements are presented in Norwegian kroner (NOK) and on consolidation, the assets and liabilities of entities with functional currencies other than NOK are translated at the rate of exchange prevailing at the end of the reporting period and their income statements are translated at average monthly exchange rates. Estimation uncertainty In preparation of the Group’s consolidated financial statements, management has made assumptions and estimates about future events and applied judgements that affect the reported amounts and related disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities in future periods. Assumptions about future developments may change due to market conditions beyond the control of the Group and are reflected in the financial statements when changes in assumptions occur. Information about estimation uncertainty, judgements and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year is largely incorporated into the individual notes. The Group’s management believes the following critical accounting items represent significant judgements and estimates not naturally belonging in the individual notes, but used in the preparation of the consolidated financial statements: Consolidation of power plant companies The Group considers all relevant facts and circumstances in assessing whether it has control over an investee. Control is achieved when the Group has power over the investee, is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The assessment of whether Scatec controls the investee is performed upon first time consolidation and is renewed annually or more often, if, facts that could impact the conclusion change. Scatec’s value chain comprises all downstream activities such as project development, financing, construction, and operations as well as having an asset management role. Normally Scatec enters partnerships for the shareholding of the power plant companies. To be able to fully utilise the business model, Scatec normally seeks to obtain control of the companies. Control is obtained through governing bodies, shareholder agreements and other contractual arrangements. Other contractual arrangements are usually protected by the shareholder agreements and include Scatec’s role as the developer of the project, EPC provider (construction), operation and maintenance service provider, and asset management service provider. 1. As developer, it obtains project rights, land permits, off taker agreements and other local approvals 2. As EPC contractor, it is responsible for the construction of the project 3. As provider of operation and maintenance services to the projects, it is responsible for the day to day operations of the plant 4. As provider of management services to the power plant companies, it provides these services 142 Notes to the consolidated financial statements These constitute the main relevant activities that affect the variable return in the difference project phases. For the power plant companies consolidated in the financial statement, Scatec has concluded that through its involvement and ownership share it controls the entities. Significant judgement is applied in determining if the exposure to variable return is satisfied. The relevant activities Scatec has power over do, in its nature, have an impact on the return of the project. Note 2 Operating segments Operating segments align with internal management reporting to the Group’s chief operating decision-makers, defined as the Executive Management team. The operating segments are determined by the differences in the nature of their operations, products and services. Scatec manages its operations in three segments: Power Production (PP), Development & Construction (D&C) and Corporate. The Group has reorganised its segment structure and the Service segment is reported as part of the Power Production segment, with effect from 1 January 2024. Comparable periods have been restated accordingly to conform with the current year’s presentation. Power Production The Power Production segment manages the Group’s power-producing assets and derives its revenue from the production and sale of solar, wind, and hydro generated electricity mainly based on long-term Power Purchase Agreements or feed-in-tariffs. In the Philippines, electricity is sold using bilateral contracts, in the spot market, and as ancillary services. In Ukraine, with regard to the Progressovka plants, electricity is sold in the spot market with the option to re-enter the long-term PPA at a later stage. In Brazil, approximately 40% of the electricity from the Mendubim solar power plant is sold in the merchant market, while the rest is sold through the 20-year corporate PPA. The segment also includes revenues from the Release concept. The performance obligation for revenues from the power-producing assets – the delivery of a series of distinct goods (power) – is satisfied over time, which requires the recognition of revenue for each unit delivered at the transaction price. Revenue is recognised upon the transfer of electricity produced to the local operator of the electricity grid, based on periodic meter readings. The Group has continued to recognise revenue from power production in Ukraine to the extent that Scatec believes collection of the consideration is probable, which is being equal to the actual paid amounts. The segment also comprises Operations & Maintenance (O&M) and Asset Management services provided to power production plants where Scatec has an economic interest reflected as a cost in the segment and external O&M services to the plants not owned. The services are delivered to ensure the optimised operation of power- producing assets through a complete and comprehensive range of services for technical and operational management. O&M revenues are generated on the basis of fixed service fees with additional profit- sharing arrangements. Asset management services typically include financial reporting to sponsors and lenders, regulatory compliance, and environmental and social management, as well as contract management on behalf of the power plant companies. Development & Construction The Development & Construction segment derives its revenue from the sale of development rights and construction deliverables and services to project entities set up to operate the Group’s power production plants. Transactions in this segment are mainly between entities under the Group’s control and hence eliminated in the consolidated financial statement. Construction include operations where Scatec is responsible for the total scope of a turnkey installation of a power plant through a contract covering Engineering, Procurement and Construction. Revenues from construction are recognised over time according to the percentage of completion. A contract’s percentage of completion is determined by assessing actual progress on site compared to the total estimated cost at completion. Progress is measured when control is transferred to the customer. For equipment such as modules, Scatec consider that control is transferred when the equipment is installed and permanently attached or fitted to the power production systems as required by the engineering designs. The construction contracts are fixed-price contracts with variable considerations related to performance- and delay liquidated damages. Scatec periodically revise contract profit estimates and immediately recognises any losses on contracts if applicable. The construction contracts include product warranties. The expected warranty amounts are recognised as an expense at the time of sale and are adjusted for subsequent changes in estimates or actual outcomes. Corporate The Corporate segment consists of the corporate and management service activities. No segments have been aggregated to form these reporting segments. Use of proportionate financials The segment financials are reported on proportionate basis. With proportionate financials Scatec reports its share of revenues, expenses, profits and cash flows from its subsidiaries without eliminations based on Scatec’s economic interest in the subsidiaries. The Group has introduced proportionate financials as the Group is of the opinion that this method improves earnings visibility and improves transparency in underlying value creation in Scatec’s business activity. Revenues from transactions between group companies, where Scatec is deemed to hold a controlling interest, are presented as internal Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 143 revenues in the segment reporting. These transactions are based on international contract standards and terms negotiated at arm’s length with lenders and co-investors in each power plant company. The consolidated revenues and profits are mainly generated in the Power Production segment. The key differences between the proportionate and consolidated (IFRS) financials are as follows: ● In the consolidated financials fully consolidated companies are presented on a 100% basis. In the proportionate financials the fully consolidated companies are presented according to Scatec’s ownership percentage/economic interest. The residual ownership interests in the table below represent the share of fully consolidated subsidiaries that Scatec does not own. ● In the consolidated financials, joint ventures and associated companies are equity consolidated and presented with Scatec’s share of the net profit on a single line in the statement of profit or loss. In the proportionate financials, the JVs and associate companies are presented, like other subsidiaries, on a gross basis for each line in the statement of profit or loss based on Scatec’s economic interest. In the table below, elimination of equity- consolidated entities shows the elimination of proportionate financials to arrive at Scatec’s share of net income/(loss). ● Internal gains from transactions between segments are eliminated in the consolidated financials but are retained in the proportionate financials. These internal gains primarily relate to gross profit on D&C goods and services delivered to project companies. Hence, the consolidated financials have a lower book value of solar plants than the proportionate financials and corresponding lower depreciation charges. ● Other eliminations are mainly related to other eliminations of intercompany and internal margins in the consolidated financial statements. Geographical break down of consolidated revenues and PPE Consolidated revenues by country NOK million 2024 2023 South Africa 1,829 1,073 Egypt 653 657 Ukraine 539 440 Honduras 398 232 Malaysia 374 364 Jordan 181 171 Czech Republic 129 150 Vietnam 81 95 Pakistan 74 - Other 109 216 Total 4,368 3,399 Property, plant and equipment by country NOK million 2024 2023 South Africa 10,110 9,554 Egypt 3,998 3,453 Malaysia 2,825 2,570 Ukraine 2,108 2,063 Honduras 1,291 1,293 Pakistan 1,227 961 Jordan 894 866 Botswana 543 11 Norway 373 475 Czech Republic 290 314 Tunisia 205 - Other 203 53 Vietnam - 422 Total 24,068 22,035 Major customers In South Africa, revenues from the Linde, Kalkbult and Dreunberg plants which commenced operations in 2013 and 2014 are earned under 20-year Power Purchase Agreements (PPAs) with Eskom Holdings (South African incumbent utility), which was awarded under the Renewable Independent Power Producer Procurement Programme (REIPPPP) administrated by the Department of Energy. During 2024 Scatec partially divested its equity share in the plants and the projects are accounted for as investments in JVs and associate companies at year-end. The Kenhardt plants started commercial operation in December 2023 under a 20-year PPA that was awarded under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP). Eskom’s financial commitments under the PPA are guaranteed by the South African National Treasury under the Implementation Agreement. The Benban plants in Egypt commenced operation in 2019. The electricity is sold under a 25-year Power Purchase Agreement with Egyptian Electricity Transmission Company, S.A.E. The financial commitments of Egyptian Electricity Transmission Company, S.A.E under the PPA are guaranteed by the sovereign guarantee from The Ministry of Finance under the Egyptian Law. The Gurun plant in Malaysia commenced operation in 2018, the Merchang and Jasin plant commenced operation in 2019, and RedSol commenced operations in 2020. The electricity is sold under 21-year Power Purchase Agreements with the country’s largest electricity utility, Tenaga Nasional Berhad (TNB). The PPA is not guaranteed by the government as TNB is a reputable AAA-rated listed company in Malaysia. 144 Notes to the consolidated financial statements Bridge proportionate – to consolidated financials 2024 Proportionate financials NOK million Power Production 1) Development & Construction Corporate Total Residual ownership for fully consolidated entities Elimination of equity consolidated entities Other eliminations Consolidated financials External revenues 4,707 - - 4,707 1,653 -1,991 - 4,368 Net gain/(loss) from sale of project assets 796 - - 796 - -33 728 1,491 Internal revenues - 2,291 59 2,351 327 -21 -2,657 - Net income/(loss) from JVs and associates - - - - - 714 - 714 Total revenues and other income 5,503 2,291 59 7,853 1,980 -1,330 -1,929 6,574 Cost of sales - -1,850 - -1,850 -386 40 2,196 - Gross profit 5,503 441 59 6,003 1,594 -1,290 267 6,574 Personnel expenses -314 -164 -110 -587 -12 104 - -495 Other operating expenses -553 -94 -75 -722 -222 272 14 -658 EBITDA 4,636 184 -125 4,694 1,360 -915 281 5,421 Depreciation and impairment -1,424 -72 -40 -1,536 -396 542 96 -1,294 Operating profit (EBIT) 3,212 112 -165 3,158 964 -373 378 4,127 1) The segment reporting structure was changed effective as of 1 January 2024 and comparable figures for 2023 have been restated 2023 Proportionate financials NOK million Power Production Development & Construction Corporate Total Residual ownership for fully consolidated entities Elimination of equity consolidated entities Other eliminations Consolidated financials External revenues 3,792 4 - 3,796 1,199 -1,601 4 3,399 Net gain/ loss from sale of project assets 348 - - 348 - - 928 1,276 Internal revenues 6 8,172 50 8,228 1,929 -521 -9,636 - Net income/(loss) from JVs and associates 1) - - - - - 46 - 46 Total revenues and other income 4,144 8,177 50 12,372 3,128 -2,076 -8,703 4,721 Cost of sales 5 -7,182 - -7,179 -1,888 502 8,565 - Gross profit 4,150 994 50 5,194 1,239 -1,575 -138 4,721 Personnel expenses -278 -216 -139 -633 -12 94 -20 -570 Other operating expenses -536 -107 -74 -716 -201 279 53 -584 EBITDA 3,334 672 -162 3,845 1,027 -1,201 -105 3,567 Depreciation and impairment -1,591 -65 -36 -1,692 -323 939 135 -942 Operating profit (EBIT) 1,743 607 -198 2,152 704 -262 31 2,625 Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 145 Note 3 Employee benefits Salaries and other personnel costs NOK million 2024 2023 Salaries 491 571 Share-based payment 29 29 Payroll tax 45 58 Pension costs 39 41 Other personnel costs 37 35 Capitalised to PP&E (project assets) -146 -164 Total 495 570 Salaries and personnel expenses for management NOK million 2024 2023 Salary and bonus 47 51 Pension 2 2 Total 50 53 Number of employees in the financial year in consolidated entities 2024 2023 South Africa 295 281 Norway 110 144 Egypt 107 98 Ukraine 49 46 Malaysia 32 29 Brazil 16 - Netherlands 26 31 Pakistan 23 28 Honduras 19 20 India 16 26 Philippines 14 15 Tunisia 13 3 Botswana 12 3 Other 22 27 Total 754 751 For further details on employee benefits and management remuneration, refer to Note 4 Personnel expenses, number of employees and auditor’s fee in the separate financial statements for the Parent Company. Reference is also made to the separate Executive Remuneration Report 2024 . No severance package agreements have been established with management. The Group’s pension schemes are classified as defined contribution plans. Long term incentive programmes The cost of equity-settled transactions is recognised in personnel expenses, together with a corresponding increase in equity over the vesting period. To calculate the fair value of the options that satisfies the definition of an equity-settled share-based payment transaction (IFRS 2 app. A), the BlackScholes-Merton option-pricing model is applied to each tranche. Share price (spot), exercise price, expected option lifetime, expected volatility, expected dividend and risk-free interest rate are the model’s input parameters. In line with the terms adopted by the Annual General Meeting of Scatec ASA on 4 May 2016, and prolonged in the years that followed, the Board of Directors have established an option programme for leading employees of the Company. Options are vested in tranches over a three-year period, with the first tranche vesting one year from award . As of 31 December 2024, there are options not fully vested from the grants awarded in 2022 and onwards. Each share option gives a right to subscribe for and be allotted one share in Scatec ASA. The strike prices are equivalent to the volume weighted average price of the shares during the ten trading days preceding the grant. For the options granted in 2024 the assumptions used to calculate the fair value of the options are as follows: 2.99 years (2.99 years) for expected lifetime, 51.19% (52.45%) for expected volatility and 0 (0) for expected dividend. The calculations are based on average values. The fair value of the options is expensed over the vesting period. In 2024 NOK 29 million (29) was expensed. Outstanding number of options Date granted Number Strike price Lapse date 1/2/2020 180,233 110 1/1/2025 1/4/2021 126,552 311 1/1/2025 5/6/2021 107,409 242 1/1/2025 1/4/2022 569,123 148 1/1/2026 3/28/2022 10,000 132 1/1/2026 4/27/2022 14,353 124 1/1/2026 5/16/2022 16,711 96 1/1/2026 1/3/2023 1,052,918 80 1/1/2027 3/2/2023 67,516 80 1/1/2027 1/3/2024 1,376,866 79 1/1/2028 Sum 3,521,681 Movements in options Opening balance Granted Terminated Closing balance Closing balance vested options Numbers of instruments 2,411,222 1,487,788 -377,329 3,521,681 1,194,401 Weighted average strike price 123.08 79.47 109.64 106.10 146.17 146 Notes to the consolidated financial statements Note 4 Other operating expenses NOK million 2024 2023 Facilities 329 210 Professional fees 188 166 IT and office costs 80 78 Travel costs 30 32 Social development contributions 32 21 O&M external fees 35 25 Other costs 44 52 Expected credit loss -80 - Total other operating expenses 658 584 Government grants are recognised when it is reasonably certain that the Company will meet the conditions stipulated for the grants and that the grants will be received. Grants are recognised either as a cost reduction or as a deduction of the asset’s carrying amount. In 2024 Scatec recognised NOK 20 million (10) in grants as deductions from the development and construction asset’s carrying amount. In 2024, NOK 80 million of expected credit loss related to Ukraine was reversed. Remuneration to the auditors (PwC and other independent auditors) NOK million 2024 2023 Audit services 17 15 Other attestation services 2 2 Tax services 1 1 Total remuneration 20 18 VAT is not included in the numbers above. Note 5 Tax Estimation uncertainty Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised based upon the likely timing and level of future taxable profits. When assessing the probability of utilising these losses several factors are considered, including whether the entity in question has a history of losses, whether there is an expiration date for the entity’s ability to carry the losses forward and/or whether the losses can be used to offset taxable income elsewhere in the Group. The majority of the Group’s tax losses relate to favourable tax rules for depreciation of power plants and their reversal is merely a timing effect. Uncertain tax positions and potential tax exposures are analysed individually and, the best estimate of the probable amount of liabilities to be paid (unpaid potential tax exposure amounts, including penalties) and assets to be received (disputed tax positions for which payment has already been made), are recognised within current tax or net deferred tax as appropriate. The Group has not identified any significant exposure to Pillar Two income taxes that require disclosure in the consolidated financial statements. Effective tax rate NOK million 2024 2023 Tax payable -135 -230 Change in deferred tax 194 384 Withholding tax -37 -42 Adjustments of tax concerning previous years - 2 Income tax expense 22 114 Reconciliation of Norwegian nominal tax rate to effective tax rate Profit before income tax 1,464 1,008 Nominal tax rate (22%) -322 -222 Tax effect of: Permanent differences on divestments 328 270 Permanent differences on tax incentive in South Africa - 457 Other permanent differences -19 66 Tax rate different from Norwegian rate -26 -29 Current tax on dividend received and withholding tax -37 -42 Valuation allowance loss carried forward -122 -322 Share of net income from associated companies 157 10 Use and capitalisation of previously unrecognised losses carried forward 36 -1 Other items 8 10 Currency translation 18 -84 Calculated tax expense 22 114 Effective tax rate -2% -11% The Group recognised an income tax benefit of NOK 22 million in 2024 compared to a tax benefit of NOK 114 million in the previous year. The tax benefit recognised in the previous year is largely attributable to the Kenhardt plants which qualified for the Enhanced renewable energy tax incentive after achieving commercial operating dates in November and Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 147 December 2023. This tax incentive granted a 25% additional tax deduction from the plants’ cost when the assets were put into use in 2023. The incentive will be settled as reduced tax payments over the coming years. The net gain from the partial divestment of the Linde, Dreunberg and Kalkbult solar power plants (NOK 1,491 million) is a permanent difference and does not give rise to any tax expense. The item is presented as permanent differences on divestments in the table above. The remaining difference between the Group’s actual tax expense and the calculated tax expense based on the Norwegian tax rate of 22% is mainly due to different tax rates in the jurisdictions in which the companies operates, withholding taxes paid on dividends, currency effects and effects from unrecognised tax losses. Furthermore, the profit/loss from JVs and associated companies is reported net after tax which also impacts the effective tax rate. The underlying tax rates in the companies in operation are in the range of 0% to 30%. In some markets, Scatec receives special tax incentives intended to promote investments in renewable energy. Significant components of deferred tax assets NOK million 2024 2023 Tax losses carried forward 4,455 4,058 Valuation allowance of deferred tax assets -797 -623 Financial instruments 29 58 Property, plant and equipment and intangible assets 152 120 Construction projects 81 92 Lease liabilities 40 56 Other items 66 5 Offsetting of tax balances 1) -2,475 -2,540 Total deferred tax assets 1,551 1,226 Significant components of deferred tax liabilities NOK million 2024 2023 Property, plant and equipment, intangible assets, including right-of-use assets 3,054 3,252 Financial instruments 80 74 Other items 11 63 Offsetting of tax balances 1) -2,474 -2,540 Total deferred tax liabilities 671 849 1) Deferred tax assets and liabilities are offset to the extent that the deferred taxes related to the same fiscal authority and there is a legally enforceable right to offset current tax assets against current tax liabilities Scatec also holds NOK 17 million in deferred tax liabilities related to disposal group held for sale which is not included in the table above. For details refer to Note 8 Sale of project assets and disposal group held for sale. Movement in net deferred tax asset NOK million 2024 2023 Net deferred tax asset at 1 January 377 117 Recognised in the consolidated statement of profit or loss 194 384 Deferred tax other comprehensive income -5 69 Deferred tax transferred to assets classified as held for sale 270 -193 Translation differences 44 - Net deferred tax asset at 31 December 880 377 Specification of tax loss carried forward NOK million 2024 Country Loss carried forward Deferred tax asset Net deferred tax on other differences South Africa 11,392 3,076 -1,858 Norway 3,205 67 -10 Ukraine 1,801 324 -305 Egypt 1,591 168 -600 Jordan 284 11 -56 Netherlands 435 - - Malaysia 187 - 17 Other 39 12 34 Total 18,934 3,658 -2,778 NOK million 2023 Country Loss carried forward Deferred tax asset Net deferred tax on other differences South Africa 10,332 2,788 -2,187 Norway 2,910 75 -25 Ukraine 1,898 389 -421 Egypt 1,463 158 -499 Jordan 379 17 -55 Netherlands 303 8 -2 Malaysia 163 - 25 Other 11 - 105 Total 17,459 3,435 -3,058 Tax losses carried forward are offset against taxable temporary differences within the same fiscal authority, mainly related to property, plant and equipment. For renewable energy companies, the tax losses carried forward are mainly related to accelerated depreciation rates for power plant assets compared to the accounting depreciations determined by the useful life of the assets. Tax losses are recognised to ensure that the tax losses were recorded to the extent that the Group expects sufficient 148 Notes to the consolidated financial statements future taxable profits to be available to utilise the losses. At year-end 2024 the Group has recorded a valuation allowance of NOK -797 million (-623) related to tax losses carried forward that are not expected to be used to offset future taxable income. The valuation allowance is recognised in Norway (NOK 463 million), Egypt (NOK 190 million), Malaysia (NOK 131 million) and other countries. In Norway the Group has disallowed interest deduction carry forward of NOK 701 million (195) which can be carried forward 10 years. Tax losses in Egypt and Jordan can be carried forward for 5 years while all other tax losses in the Group can be carried forward indefinitely. Note 6 Financial income and expenses NOK million 2024 2023 Interest income 152 162 Change in fair value of foreign exchange contracts - 246 Other financial income 33 8 Interest and other financial income 185 415 Interest expenses -2,564 -1,727 Change in fair value of foreign exchange contracts - -29 Other financial expenses -109 -221 Interest and other financial expenses -2,673 -1,977 Net foreign exchange gain/(loss) -175 -56 Net financial expenses -2,663 -1,617 See Note 19 Financial risk and capital management for interest rate sensitivity. See Note 23 Non-recourse financing for details on project financing and Note 22 for details on corporate financing . During the year the Group capitalised borrowing costs of NOK 158 million on qualifying assets under construction, see Note 9 Property, plant and equipment. Note 7 Earnings per share and shareholder information NOK million 2024 2023 Profit/(loss) attributable to the equity holders of the Company and for the purpose of diluted shares 1,309 628 Weighted average number of shares outstanding for the purpose of calculating basic earnings per share (million) 158.9 158.9 Earnings per share for income attributable to the equity holders of the Company - basic (NOK) 8.24 3.95 Effect of potential dilutive shares: Weighted average number of shares outstanding for the purpose of calculating diluted earnings per share (million) 158.9 158.9 Earnings per share for income attributable to the equity holders of the Company - diluted (NOK) 8.24 3.95 Diluted earnings per share is affected by the option programme for equity-settled share-based payment transactions. Refer to Note 3 – Employee benefits for information on share options granted to the management. No leading employees have exercised any share options during the year. There is no diluted effect on earnings per share in case of loss. At year-end 2024 the total number of shareholders in Scatec was 13.312 (14,846). The total number of outstanding shares was 158,917,275 (158,917,275) at par value NOK 0.025 per share as of 31 December 2024. Refer to Note 12 – Equity and shareholder information in the Parent financial statement for an overview of the largest shareholders of Scatec ASA and shares held by management and the Board of Directors at 31 December 2024. Note 8 Sale of project assets and disposal group held for sale Sale of project assets 8.5 MW solar power plant in Rwanda On 19 December 2023, Scatec signed an agreement with Fortis Green Fund I Rwanda Holdings Ltd and Axian Energy Green Ltd to sell its 54% equity share in the solar power plant in Rwanda for a gross consideration of NOK 14 million. Scatec has also exited the operations, maintenance, and asset management agreements for the power plant. The transaction closed on 1 August 2024 and did not generate any material accounting effects. Kalkbult, Linde and Dreunberg solar power plants in South Africa On 30 September and 20 November 2024, Scatec closed the partial sale of its ownership of 46% of in the Kalkbult and 44% of the Linde and Dreunberg solar power plants to Greenstreet 1 Proprietary Limited, a subsidiary of STANLIB Infrastructure Find II, for a gross consideration of NOK 523 million for the sold ownership share. Following the transactions, Scatec held an economic interest of approximately 13% in Kalkbult and 12% in Linde and Dreunberg. Following the transactions, Scatec lost control over the entities and the power plants have been accounted for as investments in JVs and associated companies using the equity method. The transaction generated a net gain from the sale of project entities of NOK 1.491 million in net gain/(loss) from the sale of project assets. With effect from the closing date of the first phase, the consolidation of the project companies ceased, decreasing total assets by NOK 1,434 million, decreasing total liabilities by NOK 2,393 million, and increasing equity by NOK 959 million (Scatec’s share). An accumulated foreign currency translation reserve (gain) of NOK 14 million was recycled from other comprehensive income to profit or loss as part of the deconsolidation. Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 149 Refer to Note 13 for details about the profit and loss and financial position on a stand alone basis for the acquired investments, including the bridge from Scatec’s share of equity on a stand alone basis to the carrying value of net investments in associated companies at Group level. Upington solar power plants in South Africa On 2 February 2023, Scatec signed an agreement with a subsidiary of STANLIB Infrastructure Fund II, managed by STANLIB Asset Management Proprietary Limited, to sell its 42% equity share in the Upington solar plants. The transaction was closed on 31 May 2023. Total consideration, net after sales cost amounted to NOK 546 million. The transaction generated a net accounting gain of NOK 744 million presented in net gain/(loss) from sale of project assets in 2023. Mocuba solar power plant in Mozambique On 18 July 2023, Scatec signed an agreement with Globeleq to sell its 52.5% equity share in the Mocuba solar power plant in Mozambique for a gross consideration of NOK 86 million. The transaction was closed on 29 December 2023. The transaction has generated a net accounting gain of NOK 47 million presented in net gain/(loss) from the sale of project assets in 2023. Guañizuil IIA solar power plant in Argentina On 19 October 2023, Scatec ASA and Equinor ASA sold their shares in the Guañizuil IIA solar power plant in Argentina, as well as their shares in the local operating services company to Central Puerto. In 2023 the solar power plant was impaired in the amount of NOK 350 million, and the sales transaction did not generate any material accounting impact. Release On 27 October 2023, Release closed NOK 1.1 billion transaction with Climate Fund Managers (‘CFM”). CFM contributed NOK 560 million in equity for a 32% shareholding in Release. Scatec retained the majority shareholding of 68%. As a result of the transaction and in line with the shareholder agreement, Scatec lost control over Release and recognised an investment in joint venture at fair value at the acquisition date. The divestment of the 32% shareholding generated an accounting gain of NOK 485 million in presented in net gain/(loss) from the sale of project assets in 2023. Disposal group held for sale African hydropower joint venture On 30 July 2024, Scatec signed an agreement with TotalEnergies to sell its 51% equity share in the African hydropower joint venture with Norfund and British International Investment. The sale covers Scatec’s indirect interest held through SN Power in the operating 255 MW Bujagali hydropower plant in Uganda, and a development portfolio consisting of the 361 MW Mpatamanga in Malawi, and the 206 MW Ruzizi III. The transaction is subject to conditions and consents being received from stakeholders including lenders and joint venture partners and is schedule to close within the first half of 2025. The associated balances of the investments in joint ventures and related holding entities, including part of the goodwill deriving from the acquisition of SN Power, are presented as held for sale as of 31 December 2024. Dam Nai Wind farm in Vietnam On 13 September 2024, Scatec signed an agreement to sell the 39 MW Dam Nai Wind farm and the associated operating company in Vietnam to Sustainable Asia Renewable Assets, a utility-scale renewable energy platform of the SUSI Asia Energy Transition Fund. Scatec will receive an upfront consideration of NOK 306 million (USD 27 million) for its 100% equity share at completion, with the potential for additional earn-out payments of up to NOK 147 million (USD 13 million) subject to certain conditions being fulfilled prior to May 2026. The transaction is expected to close within the first half of 2025, subject to customary regulatory approvals. The associated assets and liabilities of the subsidiaries are presented as held for sale as of 31 December 2024. As of 31 December 2023, associated assets and liabilities of the solar power plant in Rwanda were presented as held for sale. NOK million 2024 2023 Assets classified as held for sale Property, plant and equipment 434 118 Goodwill and intangible assets 230 - Investments in JVs and associated companies 1,501 - Trade and other receivables 65 8 Cash and cash equivalents 33 12 Total assets of disposal group held for sale 2,264 138 Liabilities directly associated with assets classified as held for sale Deferred tax liabilities 17 - Non-current non-recourse project financing 337 104 Current portion of non-recourse project financing 17 11 Other current liabilities 29 14 Total liabilities of disposal group held for sale 401 129 150 Notes to the consolidated financial statements Note 9 Property, plant and equipment Accounting principle Power plants in operation The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of an asset retirement obligation and, for qualifying assets, borrowing costs incurred in the construction period. All other borrowing costs are recognised in the profit or loss in the period in which they are incurred. Depreciation of a power plant commences when the plant is ready for use, normally at the date of grid connection and commissioning. Asset retirement obligations Asset retirement costs are recognised when the Group has a constructive obligation to dismantle and remove a power plant and to restore the site on which it is located. Expenditures related to asset retirement obligations are expected to be paid in the period between 2030 and 2053. Other fixed assets Other fixed assets mainly include office lease, fixtures and equipment. For accounting principles related to right to use lease assets, details are provided in Note 12 Leases. Estimation uncertainty Estimated useful life of power plants The estimated useful life of power plants is reviewed on an annual basis and changes in the useful life are accounted for prospectively. In most of these markets the sale of electricity depends on having a PPA, hence, the length of the PPA is relevant to determining useful life. The power plants currently in operation have 9 to 25 years off-take agreements. The technical useful life of a power plants is subject to several factors such as climatic conditions and the maintenance programme but is generally expected to be 30 years. Technical useful life of storage equipment, such as the BESS (batter energy storage system) on the Kenhardt plant, is dependent on usage and number of charging cycles, with the useful life is expected to be 20 years. The assessment is made on a plant-by-plant basis, and the Group’s power plants are depreciated over the length of the PPA or up to 30 years based on expected usage. Scatec’s operational assets are protected from physical damage, including damage from natural catastrophes and weather-related events, by property damage & business interruption insurance. Similar insurance has been designed for projects under construction and covers physical damage, loss of income and transportation risks. Thus, potential physical damage to plants will be repaired and is not expected to impact the useful life of the plants. Other climate related risks have been considered and it has been concluded that they do noy impact the useful life of the plants. Capitalisation of development costs Expenses relating to research activities (project opportunities) are recognised in the statement of profit or loss as they incur. Expenses relating to development activities (project pipeline and backlog) are capitalised to the extent that the project is technically and commercially viable and the Group has sufficient resources to complete the development work. The assessment of project viability is based on the completion of key development activities and includes management judgement. The carrying value of development projects that have not yet reached the construction phase was NOK 380 million (332) at 31 December 2024. During the year the Group capitalised borrowing costs of NOK 158 (583) million on qualifying assets. Capitalisation rate of the borrowing costs in the project companies under construction is close to 100%. Asset retirement obligations Scatec has obligations to dismantle and remove the power plants upon cessation of production. Scatec’s future asset retirement obligations depend on several factors, such as the possible existence of a power market for the plants after the end of their useful life, the future development of manhour and equipment costs, and interest and currency exchange rates. The calculation of the asset retirement obligation includes significant judgement and is conducted on a plant- by-plant basis, taking into consideration relevant project specifics. Impairments Power plants and projects under development and construction are tested for impairment to the extent that indicators of impairment exist, please refer to Note 10 Impairment testing for details. During 2024, the Group impaired NOK 65 million (48) related to discontinued development projects. The Group also impaired NOK 81 million related to plants in operations in Honduras. Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 151 Property, plant and equipment NOK million Power plants Power plants under development and construction Other fixed assets Total Accumulated cost at 1 January 2024 25,896 1,233 461 27,590 Additions 36 3,227 16 3,277 Transfers 378 -378 - - Disposals -2,505 -12 - -2,517 Transfer of assets classified as held for sale -539 - - -536 Effect of movements in foreign exchange rates 2,225 166 50 2,441 Accumulated cost at 31 December 2024 25,490 4,236 527 30,256 Accumulated depreciation and impairment losses at 1 January 2024 5,040 290 224 5,554 Depreciation for the year 1,077 - 51 1,128 Impairment losses 81 65 - 146 Accumulated depreciation and impairment losses disposed assets -1,050 - - -1,050 Accumulated depreciation transfer of assets classified as held for sale -110 - - -110 Effect of movements in foreign exchange rates 449 39 27 514 Accumulated depreciation and impairment losses at 31 December 2024 5,486 394 302 6,186 Carrying amount at 31 December 2024 20,002 3,842 226 24,070 Estimated useful life (years) 20-30 N/A 3-5 Accumulated cost at 1 January 2023 19,828 2,250 414 22,492 Additions 62 8,674 51 8,786 Transfers 9,564 -9,564 - - Disposals -3,377 -309 -12 -3,696 Transfer of assets classified as held for sale -214 - - -214 Effect of movements in foreign exchange rates 33 183 8 224 Accumulated cost at 31 December 2023 25,896 1,233 461 27,590 Accumulated depreciation and impairment losses at 1 January 2023 4,743 251 186 5,179 Depreciation for the year 804 - 49 853 Impairment losses 17 48 - 64 Accumulated depreciation and impairment losses disposed assets -511 -8 -12 -531 Accumulated depreciation transfer of assets classified as held for sale -100 - - -100 Effect of movements in foreign exchange rates 88 -2 1 87 Accumulated depreciation and impairment losses at 31 December 2023 5,040 290 224 5,554 Carrying amount at 31 December 2023 20,854 943 238 22,035 Estimated useful life (years) 20-30 N/A 3-5 Note 10 Impairment testing Estimation uncertainty An impairment loss is recognised when the carrying value of an asset or cash generating unit (CGU) exceeds the recoverable amount. Factors which trigger impairment testing include, but are not limited to, political changes, macroeconomic fluctuations, changes in the Group’s strategy, project delays, underperformance, tariff changes and similar. When an asset is constructed, certain assumptions are made about climate-related factors such as irradiation and temperature. Deviations from such assumptions may lead to the underperformance of assets, which, if significant, may be an indicator of impairment. Furthermore, climate-related changes are expected to have a pervasive effect on the energy industry overall which may impact factors such as regulations and the financial viability of our assets in the markets we operate in, and are considered in our impairment testing. Climate-related changes at specific locations, such as extreme weather events, may reduce production and increase maintenance costs and, if pervasive, trigger impairment testing. Recoverable amount calculations of value-in-use are based on a discounted cash flow model. The future cash flows include a number of estimates and assumptions, including future market conditions and energy prices, discount rates, estimated useful life and others. Climate risks such as more extreme weather and natural disasters, and changes to environmental regulations are accounted for in the discount rates. The estimates are based on the Group’s budgets and long-term outlooks approved by management. The recoverable amount is sensitive to changes in discount rate, expected production rates, and demand and price forecasts for power assets with variable income. 152 Notes to the consolidated financial statements The Group monitors changes in government legislation on a continual basis. Legal changes may impact key assumptions in the value-in-use calculations in future periods. Impairment test – plants in operation Tests for impairment have been performed for CGUs with mandatory annual tests and the CGUs where impairment indicators have been identified. The recoverable amounts for these units have been determined by estimating the value-in-use of the assets and comparing it against the carrying value of the CGUs. In 2024, impairment indicators were identified for Scatec’s solar power plants in Honduras due to the signing of PPA amendment agreements between Scatec’s operating entities and the off taker ENEE. The agreements included a compensation for production in previous years, a 5-year extended PPA period and lower tariff for future periods with effect from 2024. The assets were tested for impairments. Future cash flows: In line with the PPA amendment agreement the solar power plants in Honduras operate under 25-year reduced feed- in-tariffs (tariff). The estimate includes a 30 year cash flow, and for 5 years after the PPA term, the estimates are based on the PPA tariffs. Discount rate: The discount rates are based on the weighted average cost of capital (WACC) methodology. The discount rate used in the impairment calculations represents the current market assessment of the risks specific to a group of CGUs, taking into consideration any individual risks of the underlying assets that have not been incorporated into the cash flow estimates. The after-tax discount rate applied in the cash flows is 7.3%. This corresponds to the average pre- tax discount rate of 8.6%. Sensitivity: The value-in-use calculation is sensitive to changes in the discount rate. Sensitivity analysis shows that a 1% increase in the discount rate would result in an increased impairment charge of NOK 37 million, assuming other factors remained unchanged. The sensitivity analysis is for indicative purposes only. Impairment: A total impairment charge of NOK 81 million related to solar power plants was recognised. Since 2022, impairment indicators were identified for Scatec’s five solar plants in Ukraine triggered by Russia’s invasion and the plants were partially impaired in 2022. As of 31 December 2024 all the power plants owned and operated by Scatec are intact and available in Ukraine. The impairment test has been updated to reflect new information, and three scenarios have been assessed and weighted to arrive at the value-in-use for the solar power plants. No significant events have triggered additional impairment in 2024. Annual mandatory impairment test - goodwill The goodwill of the Group mainly relates to the acquisition of SN Power AS in 2021. The goodwill relates to the portfolio of identified project development opportunities and the assembled workforce. Consequently, the goodwill is allocated to and tested for impairment on the global Development & Construction operating segment. During the year, NOK 80 million was allocated to the development portfolio of the Sub-Sahara African hydropower joint venture and is classified as held for sale as of 31 December 2024. The goodwill has been tested for impairment using the following key assumptions and estimates: Discount rate: Discount rates used in the value-in-use calculation is based on the discount rate before tax. The pre-tax discount rate applied in 2024 is 8.9%. Future cash flows: The recoverable amount has been determined on the basis of value-in-use calculations. The estimated cash flows correspond to the business plan for a five-year period, which is based on the Group’s project backlog and pipeline. The business plan has been approved by the Board of Directors. Cash flows have been calculated on the basis of estimated project volumes and an average margin related to project execution. Cash outflows have been calculated on the basis of budgeted operating expenses attributable to project execution activities. To the best of management’s judgement, capital expenditure and changes in working capital are insignificant in relation to this calculation and are therefore excluded. The discounted free cash flows exceed the carrying amount and the asset is not impaired. Sensitivity: The Group is of the view that no reasonably likely change in the key assumptions listed above would cause the carrying value to materially exceed the recoverable amount for any of the CGUs. An increase in the WACC by 2 percentage point would not lead to an impairment loss. The Group did not recognise any impairments related to goodwill in 2024 or 2023 as the recoverable amounts exceeded the carrying amount. Impairment test – development projects In 2024 Scatec impaired NOK 65 million mainly relates to discontinued development projects, of which NOK 54 million relates to development projects in Vietnam as Scatec is exiting all operations in the country. Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 153 Note 11 Goodwill and other intangible assets Estimation uncertainty There is considerable estimate uncertainty associated with the value of intangible assets. Please refer to Note 10 Impairment testing for assessment of recoverable amount. Overview The Group’s goodwill is mainly associated with the acquisitions of SN Power in 2021. The Group had no other intangible assets with an indefinite useful life other than goodwill as of 31 December 2024 and 2023. During the year, NOK 80 million was allocated to the development portfolio of the African hydropower joint venture and is classified as held for sale as of 31 December 2024. The Group’s other intangible assets consist of renewable operating licence, the right to transmit electricity and software. The estimated useful life of intangible assets with a finite lifetime are reviewed on an annual basis, and are amortised over 3 to 25 years. No impairment charges related to intangible assets were recognised in 2024 and in 2023. Carrying value of goodwill and other intangible assets NOK million Goodwill Other intangible assets Total Accumulated cost at 1 January 2024 367 489 857 Additions - 28 28 Transfer of assets classified as held for sale -80 -177 -256 Effect of movements in foreign exchange 34 32 66 Accumulated cost at 31 December 2024 321 373 694 Accumulated amortisation and impairment losses at 1 January 2024 - 139 139 Amortisation for the year - 18 18 Accumulated amortisation transfer of assets classified as held for sale - -38 -38 Effect of movements in foreign exchange - 16 16 Accumulated amortisation and impairment losses at 31 December 2024 - 134 134 Carrying amount at 31 December 2024 321 239 560 Accumulated cost at 1 January 2023 357 525 882 Additions - 35 35 Cost of disposed assets - -99 -99 Effect of movements in foreign exchange 10 28 38 Accumulated cost at 31 December 2023 367 489 857 Accumulated amortisation and impairment losses at 1 January 2023 - 124 124 Amortisation for the year - 24 24 Accumulated amortisation and impairment losses disposed assets - -19 -19 Effect of movements in foreign exchange - 10 10 Accumulated amortisation and impairment losses at 31 December 2023 - 139 139 Carrying amount at 31 December 2023 367 350 717 Estimated useful life N/A 3-25 Note 12 Lease Accounting principle The Group’s leases accounted for in accordance with IFRS 16 primarily relate to offices in countries which Scatec operates and land where power production plants are located. The Group applies the recognition exemptions and recognises the lease payments as other operating expenses in the statement of profit or loss for leases of low value and leases with a lease term of less than 12 months. Future lease payments include fixed lease payments and variable lease payments that depend on an index such as the consumer price index or future events such as power generation. The Group recognises land lease payments that vary with power generation in profit or loss. Estimation uncertainty When calculating the lease liability and the right-of-use asset, the discount factor is a significant estimate. In the absence of an identifiable discount rate, implicit in the lease agreement, the discount rate used is the Group’s incremental borrowing rate. The incremental borrowing rate has been estimated by each subsidiary on an individual basis. For power producing entities, the interest rate on the non- recourse loans has been central for estimating the incremental borrowing rate. For other subsidiaries, non-secured debt has been used as a benchmark for the discount rate. Several of the Group’s lease agreements contain options to extend the lease agreement beyond the contractual lease term. As the extension period is at the end of the PPA period, it is uncertain whether the option will be exercised for land leases. The Group has evaluated all these options, but it is not reasonably certain that the Group will exercise the options, hence the period covered by these options has 154 Notes to the consolidated financial statements not been included in the lease liability. The Group reevaluates the options on a continuous basis. Reconciliation of movement in right-of-use asset NOK million Land Office & cars Total Right-of-use asset at 1 January 2024 201 116 317 Additions 1 8 9 Depreciation for the year -13 -25 -38 Sale of assets and transfer to held for sale 15 0 15 Effect of movement in foreign exchange and other changes 19 11 30 Right-of-use asset at 31 December 2024 224 109 334 Reconciliation of movement in lease liabilities NOK million 2024 2023 Lease liability at 1 January 2024 340 313 Lease agreements entered into during the year 9 66 Lease payments made during the year -48 -48 Interest expense on lease liabilities 26 27 Effect of movement in foreign exchange and other changes 19 -18 Lease liability at 31 December 2024 346 340 Leases in the income statement NOK million 2024 2023 Operating expenses Short term- low value and variable lease payment expenses -32 -35 Depreciation expenses Depreciation of right-of-use assets (land lease) -13 -13 Depreciation of right-of-use assets (office lease and other) -25 -25 Total depreciation -38 -38 Financial expenses Interest expense on lease liability -26 -27 Total lease expense in the income statement -96 -100 Leases in the statement of financial position NOK million 2024 2023 Assets Right-of-use assets - land lease 224 201 Right-of-use assets - office lease and other 109 116 Total right-of-use assets 334 317 Liabilities Non-current liabilities Lease liabilities (see Note 17 Other non-current and current liabilities) 320 315 Current liabilities Lease liabilities (see Note 17 Other non-current and current liabilities) 26 25 Lease liabilities included in the balance sheet 346 340 The land lease portion of the right-of-use asset is presented under ‘power plants’ and ‘Power plants under development and construction’ in Note 9, while the office lease portion of the right-of-use asset is presented under the line ‘Other fixed assets’. Leases in the statement of cash flows NOK million 2024 2023 Cash flow from operating activities Short-term and variable lease payments 32 35 Cash flow from financing activities Payments of principal portion on lease liabilities 22 21 Interest paid on lease liabilities 26 27 Maturity analysis – undiscounted contractual cash flows NOK million 2024 2023 One year 46 47 One to two years 47 62 Two to three years 48 40 Three to four years 43 37 Four to five years 48 35 More than five years 256 278 Total undiscounted lease liabilities 489 499 Lease liabilities included in the balance sheet 346 340 Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 155 Note 13 Investments in joint venture and associated companies Accounting principle and estimation uncertainty A joint venture or associate is an entity over which the Group has joint control or significant influence. The Group’s investments in its associates and joint ventures are accounted for using the equity method. Under the equity method, an investment is initially recognised at cost or at fair value when acquired through a transaction, and subsequently adjusted for further investments, distributions, and the Group’s share of the net income from the associate or joint venture. Refer to Note 1 for preparation, basis for consolidation and key sources of estimation. Other current assets in the table of “Financial positions for material joint venture and associated companies” include excess values for all JVs excluding Brazil. Excess values mainly relate to water rights, and infrastructure assets in the solar power companies. The estimated useful life of the water rights is reviewed on an annual basis and amortised over the remaining concession period. The excess values, and related amortization, are grossed up on a 100% basis in the tables below according to the values allocated to Scatec’s share. Carrying amounts of joint ventures and associated companies In 2024 Alunorte entered the Mendubim project in Brazil with a 10% economic interest and Scatec’s ownership share fell from 33% to 30%. The Mendubim project has entered into a 20-year fixed price PPA with Alunorte starting on 1 January 2025 for the sale of approximately 60% of the energy from the solar power plant. In 2024, all energy was sold in the merchant market at lower prices compared to the PPA, and Scatec experienced curtailment losses due to grid constraints, which affected the results for 2024. Scatec expects the project financials to improve in 2025. In 2024 Scatec signed an agreement with TotalEnergies to sell its 51% equity share in the African hydropower joint venture with Norfund and British International Investment. The associated balances of the JV investments are presented as held for sale as per 31 December 2024. Scatec closed the partial sale of the Kalkbult, Linde and Dreunberg solar power plants in 2024, and all assets and liabilities were deconsolidated and Scatec’s investment in JVs and associates was recognised at fair value at the transaction date. Excess values of NOK 200 million are identified for investments in JVs and associated companies. Dividends include refinancing of NOK 324 million of the assets in the Philippines. Material joint ventures and associated companies Company 2024 2023 Brazil Scatec Solar Brazil BV 50.00% 50.00% Apodi I Energia SPE S.A 43.75% 43.75% Apodi II Energia SPE S.A 43.75% 43.75% Apodi III Energia SPE S.A 43.75% 43.75% Apodi IV Energia SPE S.A 43.75% 43.75% Mendubim Holding B.V. 1) 33.33% 33.33% Mendubim Geração de Energia Ltda. 1) 30.00% 33.33% Mendubim (I-XIII) Energia Ltda. 1) 30.00% 33.33% Mendubim Solar EPC Ltda. 1) 33.33% 33.33% Scatec Solar Solutions Brazil B.V. 50.00% 50.00% Scatec Solar Brasil Servicos De Engenharia LTDA 50.00% 50.00% Laos Theun-Hinboun Power Company 20.00% 20.00% Philippines SN Aboitiz Power – Magat Inc 50.00% 50.00% Manila-Oslo Reneweable Enterprise 16.70% 16.70% SN Aboitiz Power – Benguet Inc 50.00% 50.00% SN Aboitiz Power – RES Inc 50.00% 50.00% SN Aboitiz Power – Generation Inc 50.00% 50.00% Uganda Bujagali Energy Ltd. 28.28% 28.28% SN Power Uganda Ltd. 51.00% 51.00% Rwanda Ruzizi Energy Ltd. 20.40% 20.40% Norway Release Solar AS 2) 68.00% 68.00% Netherlands SN Power Invest Netherlands B.V. 51.00% 51.00% SN Development B.V. 51.00% 51.00% Release Management B.V. 2) 68.00% 68.00% Malawi Mpatamanga Hydro Power Ltd. 25.50% 25.50% SN Malawi B.V. 51.00% 51.00% South Africa Scatec Solar SA 164 (Pty) Ltd. 21.00% 80.70% Simacel 155 (RF) (Pty) Ltd. 11.55% 44.40% Simacel 160 (RF) (Pty) Ltd. 11.55% 44.40% Scatec Solar SA 165 (Pty) Ltd. 21.00% 76.60% Scatec Solar SA 166 (Pty) Ltd. 12.60% 46.00% 1) Mendubim project structure includes 13 SPVs, EPC and an operating company.2) Release project structure includes 11 companies 156 Notes to the consolidated financial statements Carrying amounts of investments in material joint ventures and associated companies Country Carrying value 31 December 2023 Additions/ disposals Net income from joint venture and associated companies Dividends Assets held for sale Foreign currency translations Carrying value 31 December 2024 Philippines 6,770 6 472 -795 - 445 6,898 Laos 1,882 1 109 -160 - 217 2,048 Uganda 1,288 - 97 -203 -1,350 167 - Brazil 1,093 -18 -8 -18 - 1 1,051 Release 1,217 -64 -28 - - 128 1,254 South Africa - 186 18 - - -4 200 Other 118 -34 55 - -151 12 - Total 12,368 77 714 -1,176 -1,501 967 11,451 100% figures of summarised profit and loss for material joint ventures and associated companies 2024 NOK million Philippines Laos Uganda Brazil Release South Africa Other Revenues 2,204 1,519 1,294 487 120 823 -9 Operating expenses -422 -207 -122 -187 -71 -125 -26 Depreciation, amortisation and impairment -493 -679 -227 -181 -75 -158 - Operating profit/(loss) 1,289 633 945 120 -27 540 -35 Net financial items -203 3 -158 -217 -7 -203 376 Profit before income tax 1,087 636 788 -97 -34 336 342 Income tax -137 -93 2 105 1 -95 - Profit/(loss) after tax 950 543 790 8 -33 241 342 Scatec’s share of profit/(loss) after tax 475 109 223 11 -22 87 173 Elimination of January - September figures for South Africa - - - - - -68 - Elimination of profit & loss for assets held for sale - - -134 - - - 11 Elimination of internal transactions and foreign currency translation -3 - 7 -19 -6 -1 -128 Net profit/(loss) 472 109 97 -8 -28 18 55 2023 NOK million Philippines Laos Uganda Brazil Release Other Revenues 1,605 1,258 1,349 352 112 103 Operating expenses -521 -195 -88 -138 -37 -58 Depreciation, amortisation and impairment -479 -666 -399 -106 -52 -735 Operating profit/(loss) 605 398 861 108 23 -689 Net financial items -214 -33 -308 -136 22 171 Profit before income tax 391 365 553 -28 44 -519 Income tax -87 -52 -34 -8 -20 76 Profit/(loss) after tax 304 313 520 -19 25 -443 Scatec’s share of profit/(loss) after tax 152 63 147 -11 17 -220 Elimination of January - October figures for Release - - - - 10 - Elimination of profit & loss for assets held for sale - - - - - - Elimination of internal transactions and foreign currency translation - - 24 12 -17 -129 Net profit/(loss) 152 63 171 1 10 -350 Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 157 100% figures of summarised financial positions for material joint venture and associated companies (standalone basis) 2024 NOK million Philippines Laos Uganda Brazil Release South Africa Other Non-current assets 20,141 10,814 10,162 12,129 3,265 3,297 3,371 Current assets 745 305 311 401 939 187 22 Cash and cash equivalents 1,077 216 494 452 292 82 63 Total assets 21,963 11,335 10,966 12,981 4,495 3,566 3,456 Non-current liabilities 7,094 882 5,350 7,074 762 2,079 551 Current liabilities 1,069 218 362 544 945 252 66 Total liabilities 8,164 1,100 5,711 7,618 1,707 2,330 618 Total equity 13,799 10,236 5,255 5,363 2,788 1,235 2,838 Scatec share of equity 6,900 2,047 1,486 1,857 1,896 166 1,454 Loans to joint ventures as investment 10 - - 194 4 51 88 Other / foreign currency translation -12 1 -136 -20 -5 4 12 Assets held for sale - - -1,350 - - - -151 Elimination of equity investments - - - -980 -641 -22 -1,402 Net investment in joint ventures 6,898 2,048 - 1,051 1,254 200 - 2023 NOK million Philippines Laos Uganda Brazil Release Other Non-current assets 19,241 10,198 9,277 11,200 2,222 2,754 Current assets 625 201 277 741 1,330 44 Cash and cash equivalents 915 696 447 513 533 178 Total assets 20,781 11,094 10,000 12,454 4,086 2,977 Non-current liabilities 6,543 852 5,155 6,072 210 388 Current liabilities 823 833 299 1,219 1,316 30 Total liabilities 7,365 1,685 5,453 7,292 1,525 418 Total Equity 13,416 9,409 4,547 5,163 2,561 2,559 Scatec share of equity 6,708 1,882 1,286 1,798 1,741 1,313 Loans to joint ventures as investment 73 - - 258 66 61 Other / foreign currency translation -10 - 2 14 -31 - Assets held for sale - - - - - - Elimination of equity investments - - - -975 -560 -1,255 Net investment in joint ventures 6,770 1,882 1,288 1,093 1,217 118 158 Notes to the consolidated financial statements Note 14 Trade receivables Trade receivables are recognised for amounts owed by the customer. Accrued income represents contract assets related to energy production in the last month of the year, which is invoiced in January the following year. In accordance with the expected credit loss (ECL) model, lifetime expected credit loss is recognised on the basis of historical and forward-looking information. Expected credit loss is assessed on an individual instrument basis. In Honduras, Scatec has historically experienced delays in payments from the state-owned off-taker. In 2024 overdue receivables have decreased following the settlement agreement for the amended PPA reached in the first quarter of 2024. Historically, no receivables have been written off and remaining outstanding amounts are expected to be settled; hence no expected credit loss provision has been recognised. In 2022 Scatec made an expected credit loss provision in Ukraine reflecting the high uncertainty for future settlement of trade and other receivables related to the period prior to the war. In 2024, all outstanding trade receivables from before the war were settled and the provision related to trade receivables was reversed. For other jurisdictions in the Group, no expected credit provision has been made. NOK million 2024 2023 Trade receivables 322 328 Accrued income and other receivables 203 247 Impairment for expected credit loss -38 -98 Total trade and other receivables 487 478 Ageing of trade receivables at year-end was as follows: NOK million Total Not overdue Overdue 2024 322 273 49 2023 328 242 86 Scatec also holds NOK 65 million in trade and other receivables related to disposal group held for sale which is not included in the tables above. For details refer to Note 8 Sale of project assets and disposal group held for sale. Note 15 Cash and cash equivalents Cash and cash equivalents include bank deposits and monetary items. Total cash include cash in non-recourse and in recourse entities, and NOK 135 million of the cash is restricted relating to proceed accounts, debt service reserve accounts, disbursements accounts, maintenance and insurance reserve accounts and similar. Cash in assets held for sale of NOK 33 million and cash held in JVs and associated companies is not included. As of 31 December 2024, NOK 274 million is related to companies in Ukraine (of which NOK 246 million is cash in power plant companies). Note 16 Other non-current and current assets Other non-current assets NOK million 2024 2023 Other non-current investments 59 154 Other non-current receivables 104 112 Total other non-current assets 163 265 Other current assets NOK million 2024 2023 Prepayments related to assets under construction 222 635 Receivables from public authorities, prepaid taxes & VAT 353 252 Other receivables and prepaid expenses 332 263 Total other current assets 907 1,150 Note 17 Other non-current and current liabilities Other non-current liabilities comprise the following: NOK million 2024 2023 Shareholder loan from co-investors 469 428 Non-current lease liability (ref Note 12) 320 315 Asset retirement obligations (ref Note 9) 480 490 Other long-term liabilities and accruals 124 110 Total other non-current liabilities 1,393 1,343 Other current liabilities comprise the following: NOK million 2024 2023 Accrued expenses related to assets under development/construction 496 1,400 Public duties other than income taxes 205 89 Accrued payroll 84 74 Current lease liability (ref Note 12) 26 25 Deferred income 16 14 Other current liabilities and accruals 453 459 Total other current liabilities 1,281 2,060 Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 159 Movement in asset retirement obligations NOK million 2024 2023 Asset retirement obligation at 1 January 490 475 Additional provision during the year 45 35 Provisions reversed in association with disposals -109 -52 Unwinding of discount 23 25 Effect of movement in foreign exchange and other changes 30 6 Asset retirement obligation at 31 December 480 490 Accrued expenses relate to accrual of project costs on the construction projects in South Africa, Botswana and Tunisia. Asset retirement obligations are provided for as the Group considers it a constructive obligation to dismantle and remove a power plant and restore the site on which it is located at a future date. The estimate for the asset retirement cost is capitalised as part of the carrying value of the power plant and depreciated over the useful life. The estimate is reassessed annually for each power plant, based on updates in assumptions and key input data. Note 18 Legal disputes and contingencies Estimation uncertainty The Group is operating in various jurisdictions and is subject to legal disputes and regulatory reviews. Management applies assumptions and judgement to consider all information available when assessing if unfavourable outcomes are probable and when estimating amounts required to settle any obligation. Legal claims are assessed on an individual basis and provisions are recognised if the specific claims give rise to present, probable obligations and the costs can be reliably measured. Significant disputes and uncertain tax positions The joint venture in Uganda is subject to a tax investigation by a local tax authority and received tax claims totaling the equivalent of NOK 344 million (at 31 December 2024) on Scatec’s proportionate share during the third quarter of 2023. The matter is disputed, and the amount is not included in net income from JVs and associated companies for the year. If the claims materialise, the joint venture will claim this through the tariff according to the Power Purchase Agreement. Should this be challenged the JV has certain indemnities under the Power Purchase Agreement with the off-taker. Furthermore, Scatec has certain tax indemnities under the SN Power share purchase agreement with Norfund. Reference is made to Scatec’s previous communication regarding changes to the PPA in Honduras. In May 2022, a new energy law came into force as introduced by the new government of Honduras. On 31 January 2024, a PPA amendment agreement was signed between Scatec’s operating entities in Honduras and the off taker ENEE. The agreement included a compensation for production in previous years, a 5-year extended PPA period and a lower tariff for future periods with effect from 2024. Following the settlement agreement, the overdue receivables in Honduras were reduced, and as of 31 December 2024 the outstanding balance was NOK 52 million. The Sukkur project in Pakistan was awarded a “costs plus tariff” by the National Electric Power Regulatory Authority (NEPRA) in 2020 and the project reached commercial operation in January 2024. The project has a 25-year PPA with the Central Power Purchasing Agency of Pakistan. The revenue is recorded according to a lower reference tariff and is subject to a “tariff true up” following approval by NEPRA. The tariff true up is a routine process for NEPRA projects and is expected to take approximately 18-24 months. Depending on the conclusion of the process, any differential revenue will be recorded in the period in which approval is granted by the regulator, while an unfavourable outcome may negatively impact the project’s economics. Refer to Note 30 Subsequent events for further information. Scatec has a signed PPA for one of Scatec’s pipeline projects in India, and there is ongoing litigation that may impact the project timeline and economics. Furthermore, there are certain milestone commitments for the PPA and the project if backed by a bank guarantee from Scatec ASA of USD 8 million. By the end of the financial year, the process was yet to be concluded and no provision had been made. Note 19 Financial risks and capital management Through its business activities Scatec is exposed to the following financial risks: ● Liquidity risk ● Market risk (currency risk and interest rate risk) ● Credit risk Liquidity risk and capital management Liquidity risk is the risk that Scatec will not be able to meet its financial obligations when due. The Group manages liquidity risk through the regular review of future commitments, cash flows from operations, and credit facilities. Scatec’s liquidity risk depends on the financial performance of operating assets in the portfolio and future growth opportunities. New regulations and shift in global financing towards green investments may impact Scatec’s ability, and terms, in obtaining financing in future periods. Scatec's capital management is designed to effectively manage liquidity risk and ensure reliable access to capital. Scatec’s operations 160 Notes to the consolidated financial statements are funded to generate shareholder value through profitable and sustainable growth. Non-recourse financing Renewable energy companies are predominately financed by equity from Scatec and co-investors and non-recourse loans from project lenders. The companies are ring-fenced and the security provided, and the repayment of loans is only based on the project assets and revenue. The Group’s book value of the pledged power plants is NOK 22,004 million (20,710) as of 31 December 2024.The financing has a clearly defined and limited risk profile and there is no obligation for project equity investors to contribute additional funding in the event of a default. Free cash flows after debt service are distributed from the power plant companies to Scatec, and to any other project equity investors in accordance with the shareholding and the terms of the finance documents. The aim is to distribute all excess cash in the SPVs to maintain liquidity and manage capital at the corporate level. In some of the countries where Scatec operates, the respective government has imposed regulations on the repatriation of funds from the country. This may halt or delay the flow of funds between Group companies under certain circumstances. Scatec seeks to minimise such risk by assessing the relevant jurisdictions and regulations and adapting accordingly. Please refer to Note 23 Non-recourse financing for overview of such financing in the Group, including covenants. Corporate financing External funding on the corporate level includes various funding sources to reduce dependency on a single bank and to optimise the capital structure and liquidity in the Group. This includes equity and corporate financing such as: ● Listed unsecured bonds and financing not pledged for collateral ● Secured financing in the form of Term loans ● Credit facilities used to maintain flexibility in funding by maintaining availability under committed credit facilities. The Group has available funding through the USD 180 million Revolving Credit Facility (RCF) and the USD 5 million Overdraft Facility. As of 31 December 2024, Scatec had not drawn on the facilities. As disclosed in the Note 24 Trade payables and supplier finance, the Group has financial arrangements in place with some of the corporate banks that offer extended payment terms related to supply of components of property, plant and equipment for the projects under construction from selected suppliers. The suppliers receive payments according to the payment terms of the invoices, and Scatec settles the invoices with the issuing bank up to 150 days later. Other interest-bearing liabilities Other interest-bearing liabilities include liabilities where corporate guarantees are provided from Scatec ASA as security backing our obligations. Maturity of principal payment and interest on financial liabilities held by the Group as of balance sheet date NOK million 2024 Within 1 year 1-2 years 3-5 years More than 5 years Corporate financing 2,716 890 7,286 - Non-recourse financing 3,222 2,245 6,611 25,661 Other interest bearing liabilites 527 - - - Shareholder loan from non- controlling interests - - 188 555 Trade and supplier finance 481 - - - Lease liabilities 46 47 139 256 Total 6,992 3,182 14,224 26,472 NOK million 2023 Within 1 year 1-2 years 3-5 years More than 5 years Corporate financing 1,564 4,600 5,612 - Non-recourse financing 2,596 2,455 7,091 20,717 Other interest bearing liabilites - 247 - - Shareholder loan from non- controlling interests 30 12 168 370 Trade and supplier finance 294 - - - Lease liabilities 47 62 112 278 Total 4,531 7,376 12,983 21,365 For information about the Group’s financial liabilities including maturity, refer to Note 22 Financing, Note 23 Non-recourse financing, Note 25 Guarantees, Note 12 Leases and Note 24 Trade payables and supplier finance. Market risk Scatec is exposed to foreign currency risks and interest rate risks arising from financial instruments. Currency risk Scatec operates internationally and is subject to currency exposure when transactions and monetary balances are denominated in currencies other than the functional currency. For the Group’s operating entities, currency risk is managed on the basis of the functional currency and expected cash flows. This is achieved through the set-up of the SPVs with natural hedges where non-recourse financing, revenue and other transactions are to a large extent denominated in the same currency. Construction revenues, cost of sales and gross profit may be denominated in different currencies. Currency risk is reduced by using multi-currency construction Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 161 contracts as a natural hedge of cost of sales or foreign exchange derivative contracts to hedge currency exposure. The Group is exposed to currency fluctuations that impact dividend distributions from the operating companies and dividend payment to the shareholders of the parent company. The general policy of the Group is not to hedge foreign currency exposure on distributions from the operating companies. The sensitivity analysis shows the profit and loss effect of revaluation of balances in foreign currency due to changes in currencies that the Group is exposed to. The sensitivities have been calculated on the basis of what Scatec views as reasonably possible changes in the foreign exchange rates for the coming year and net consolidated balances in different currencies as of 31 December 2024. Profit and loss impact of a 5% increase in the currency rate against NOK NOK million 2024 2023 EUR - Net gain/(loss) (5%) -56 -63 ZAR - Net gain/(loss) (5%) -14 -25 UAH - Net gain/(loss) (5%) -10 -3 MYR - Net gain/(loss) (5%) -7 -6 EGP - Net gain/(loss) (5%) -7 -7 USD - Net gain/(loss) (5%) 21 18 Interest rate risk Scatec is exposed to interest rate risks through funding and cash management activities. The interest rate risk management objective is to minimise borrowing costs and keep the volatility of future interest payments at an acceptable level. The Group manages its interest rate risk either by using long-term financing at fixed rates or using floating to fixed interest rate swaps subject to hedge accounting for either parts or full exposure of external loans. For details refer to Note 21 Derivative financial instruments for overview of derivatives entered into in the Group. Based on the Group’s current interest-bearing debt portfolio, the interest rate hedge ratio (weighted average) is approximately 69% (63%) for the non-recourse project level debt. For corporate debt, the hedge ratio has increased from 17% in 2023 to 36% in 2024 due to entering into the cross-currency fixed interest rate swap for the bond issued during the year. For details refer to Note 22 Corporate financing. Profit and loss impact before tax of one percentage point increase in the interest rates on unhedged debt NOK million 2024 2023 Percentage change 1% 1% Net gain/(loss) -74 -71 The impact on the profit and loss of an increase in the interest rate of one percentage point would result in a gain or loss of NOK 74 million (71). Credit risk Credit risk is the risk that Scatec’s customers or counterparties will cause financial loss by failing to meet their obligations. The Group is exposed to third party credit risk in several instances, including off-take partners who have committed to buying electricity produced by or on behalf of the Group, suppliers and/or contractors who are engaged to construct or operate assets held by the Group, property owners who are leasing land to the Group, banks providing financing and guarantees of the obligations of other parties, insurance companies providing coverage against various risks applicable to the Group’s assets, and other third parties who may have obligations towards the Group. Most of the electric power generated in the Group’s current portfolio of projects in operation or under construction is, or will be, sold under long-term off-take agreements with public utilities or other partners, or under Feed-in Tariff (“FiT”) arrangements, Power Purchase Agreements (PPAs) or similar support mechanisms governed by law. The majority of these projects are supported by government guarantees or have obligations regulated by law. However, there is still a risk of legislative or other political action that may impair their contractual performance. The Group’s main credit risks arise from credit exposures with accounts receivables and deposits with financial institutions. All major deposits and investments with financial institutions are kept with entities that have a minimum international credit rating from S&P of at least A- or equivalent. Theoretically, the Group’s maximum credit exposure is the statement of financial position carrying amounts of financial loans and receivables as well as cash and cash equivalents as disclosed in note 20 Financial instruments. Refer to Note 14 Trade receivables for information on the expected credit loss provision related to trade receivables. 162 Notes to the consolidated financial statements Note 20 Financial instruments Accounting principle The classification of financial assets depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. The Group’s financial assets at amortised cost mainly include receivables and cash and cash equivalents. Financial assets at amortised cost are subsequently measured by using the effective interest (EIR) method and are subject to impairment assessment. See Note 14 for accounting policy and the ECL approach on trade receivables. All financial liabilities are initially recognised at fair value, in the case of loans and payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables, interest bearing loans including bank overdrafts and derivative financial instruments. A financial liability is derecognised when the obligation is discharged, cancelled or expires After initial recognition, interest- bearing loans are subsequently measured at amortised cost by way of the EIR method. The EIR amortisation is included as finance costs in the statement of profit or loss. The Group’s financial assets and liabilities at fair value through OCI include effective cash flow hedges related to interest rate swaps on external debt and foreign exchange forward contracts. Estimation uncertainty Fair value measurement All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy on the basis of the lowest level input that is significant to the fair value measurement. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on the observable yield curves (level 2). The fair value of foreign exchange derivative is calculated as the present value of the difference between the fixed forward rate and the spot rate at the balance sheet date (level 2). During the reporting period ending 31 December 2024, there were no transfers between the fair value levels. Refer to Note 21 Derivative financial instruments for details. There are no significant differences between the total carrying value and the fair value for financial instruments measured at amortised cost. Financial instrument by measurement category NOK million Measurement category 2024 2023 Assets Debt instruments Trade receivables Amortised cost 487 478 Other debt instruments and receivables Amortised cost 233 312 Cash and cash equivalents Amortised cost 3,890 3,101 Derivatives Interest rate swap Fair value through OCI 360 315 Foreign exchange forward contracts Fair value through OCI 41 - Total financial assets 5,011 4,206 Total current 4,536 3,728 Total non-current 475 478 Liabilities Interest bearing loans and borrowings Corporate financing Amortised cost 8,878 9,079 Non-recourse financing loans Amortised cost 18,829 16,957 Other interest bearing liabilities Amortised cost 500 247 Trade payables and supplier finance Amortised cost 481 294 Shareholder loan from non-controlling interests Amortised cost 469 428 Lease liability Amortised cost 346 340 Derivatives Interest rate swap Fair value through OCI 213 179 Foreign exchange forward contracts and cross-currency interest rate swaps Fair value through OCI 274 41 Total financial liabilities 29,989 27,564 Total current 5,120 3,670 Total non-current 24,870 23,894 Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 163 Changes in liabilities arising from financing activities NOK million 2024 2023 2024 2023 2024 2023 2024 2023 Corporate financing Non-recourse financing Other interest-bearing liabilities Shareholder loan Opening balance at 1 January 9,079 7,987 16,957 15,260 247 462 428 708 Cash movements during the year Proceeds 1,702 713 3,953 6,038 212 - 34 45 Repayment -2,615 -110 -1,649 -1,818 - -247 -51 -12 Interest paid 1) -842 -630 -1,620 -1,388 - -16 -35 -44 Non- cash movements during the year Accrued interest expense1 ) 924 796 1,746 1,588 18 19 37 50 Disposal and reclassified to held for sale - - -337 -2,803 - - - -22 Deconsolidated and classified as JV - - -1,747 - - - - - Reclassified to equity - - - - - - - -329 Foreign exchange movements 629 324 1,525 80 23 29 56 32 Closing balance at 31 December 8,877 9,079 18,829 16,957 500 247 469 428 1) Interest paid and accrued interest include capitalised borrowing cost Refer to Note 12 Lease for movement in lease liabilities and note 24 Trade payables and supplier finance for information about supplier finance arrangements Note 21 Derivative financial instruments Derivatives The Group uses derivative financial instruments to hedge certain risk exposures. Derivative financial instruments entered into include: ● receive fixed, pay variable interest rate swaps to hedge the interest rate risks related to non-recourse financing of renewable power production plants and for parts of the corporate debt ● cross-currency interest rate swap to hedge corporate debt denominated in NOK where the principal amount in NOK is swapped to USD and reference rate is swapped from NIBOR to SOFR to hedge the risk of fluctuations in the USD/NOK exchange rate and the underlying interest rates ● cross-currency interest rate swap to hedge corporate debt denominated in NOK where the principal amount in NOK is swapped to USD and variable interest rate is swapped to fixed to hedge the interest rate risks ● foreign exchange derivative contracts to hedge the risk related to financing and CAPEX denominated in foreign currencies for projects under construction Hedge accounting Interest rate swaps and cross-currency interest rate swaps Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. The effective portion of cash flow hedges is recognised in OCI and later reclassified to profit or loss when the underlying hedged item affects profit or loss. The Group applies hedge accounting only for cash flow hedges that meet the criteria in IFRS 9. This includes the interest rate swaps and the cross-currency interest rate swaps. Such hedges are expected to be highly effective in achieving offsetting changes in the expected cash flows and are assessed on an ongoing basis to determine whether they have actually been highly effective throughout the financial reporting periods for which they were designated. Foreign exchange derivatives Foreign exchange derivatives consist of USD/ZAR currency forward contracts related to the power plants under construction in South Africa, to mitigate currency exposure on equipment purchases denominated in USD. The foreign exchange derivatives are initially recognised in the statement of financial position at fair value. The forecast transaction subsequently results in the recognition of a non- financial item (property, plant and equipment), as such the carrying 164 Notes to the consolidated financial statements value of that item is adjusted for the gains or losses on the hedging instrument accumulated in the cash flow hedge reserve in equity. This adjustment is made through a direct transfer from the cash flow hedge reserve in equity to that hedged item once it is recognised in the statement of financial position. Derivative financial assets and liabilities The tables show the market value of the derivatives for the year ending 2024 and 2023, carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The derivative financial instruments are presented on a gross basis in the consolidated statement of financial position, since the Group did not have the legal right to offset these cash flows. NOK million 2024 2023 Interest rate swap contracts Current portion 24 16 Non-current portion 336 299 Total interest rate swap contracts - financial assets 360 315 Foreign exchange contracts Current portion 12 - Non-current portion 29 - Total Foreign exchange contracts - financial assets 41 - Total derivative financial assets 401 315 NOK million 2024 2023 Interest rate swap contracts Current portion 60 7 Non-current portion 153 172 Total Interest rate swap contracts - financial liabilities 213 179 Foreign exchange contracts Current portion 4 34 Non-current portion 270 7 Total Foreign exchange contracts - financial liabilities 274 41 Total derivative financial liabilities 488 219 Interest rate swaps by country NOK million 2024 Country Notional amount (NOK million) Fixed rate Floating reference rate Maturity Norway 1,352 0.40% USD SOFR Compounded 2025 Norway 1,750 3.87% 3-months USD SOFR 2028 South Africa 5,429 7.42%-9.78% 3-month JIBAR 2025-2029 Egypt 2,485 2.15% USD SOFR Compounded 2041 Malaysia 204 2.95% 6-month KLIBOR 2028 Botswana 379 3.78%-4.27% USD SOFR Compounded 2044-2045 NOK million 2023 Country Notional amount (NOK million) Fixed rate Floating reference rate Maturity Norway 1,374 0.40% 3-month USD LIBOR 2025 South Africa 3,308 8.40%-9.78% 3-month JIBAR, 1- month JIBAR 2025-2041 Egypt 2,369 2.15% USD SOFR Compounded 2041 Malaysia 191 2.95% 6-month KLIBOR 2028 In 2024, Scatec entered into a cross-currency fixed interest rate swap contract for the unsecured NOK 1,750 million bond in which the principal was swapped to USD 164 million, and the interest payments based on NIBOR rates were swapped to fixed SOFR rates. In 2023, Scatec entered into a cross-currency swap for the NOK 1 billion senior unsecured Green Bond which was swapped to USD 97.5 million and the interest reference rate was swapped from NIBOR to SOFR to hedge the risk of fluctuations in the USD/NOK. The swap matures in 2027. Reconciliation of hedging reserve NOK million 2024 2023 Opening balance 98 291 Amount reclassified from OCI to profit or loss, gross 97 -125 Amount reclassified from OCI to profit or loss, tax effect -23 28 Unrealised gain/(loss) during the year -68 -125 Unrealised gain/(loss) during the year, tax effect OCI 14 37 Hedge reserves in disposed entities and currency effects -2 -8 Closing balance 116 98 Of which equity holders of the parent company 30 34 Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 165 Note 22 Financing Corporate financing Bonds On 31 January 2024, Scatec ASA announced the issuance of a NOK 1,750 million 4-year senior unsecured bond with a coupon of 3 months NIBOR + 4.25% p.a. with quarterly interest payments. DNB Markets, Nordea and SpareBank 1 Markets acted as Joint Lead Managers in connection with the placement of the new bond issue. The bond has maturity in Q1’28 and was listed on the Oslo Stock Exchange in Q2’24. With the new bond, Scatec has entered into a cross-currency fixed interest rate swap contract in which the principal of NOK 1,750 million was swapped to USD 164 million, and the interest payments based on NIBOR rates are swapped to fixed SOFR rates. On 1 February 2024, Scatec ASA announced the buy-back of EUR 136 million of the outstanding EUR 250 million senior unsecured bond with ticker “SCATC03 ESG” (ISIN NO0010931181). Following the transactions, the total nominal outstanding amount is EUR 114 million as of 31 December 2024. The listed EUR Green Bond has a coupon rate of 3M EURIBOR + 2.5 % margin. Refer to Note 30 Subsequent events for refinancing details after year-end 2024. On 10 February 2023, Scatec ASA issued NOK 1 billion of new senior unsecured green bonds to refinance USD 93 million of the Bridge-to- Bond facility Interests are paid on a quarterly basis, with no repayments of principal before maturity. The bonds have maturity in February 2027 with a coupon rate of 3m NIBOR + 660 bps. With the bond, Scatec ASA entered into a cross-currency interest rate swap contract in which the principal of NOK 1 billion was swapped to USD 97.5 million, and interest payments based on NIBOR rates were swapped to SOFR-based rates. Corporate financing facilities On 25 January 2024, Scatec ASA agreed refinancing terms with DNB, Nordea and Swedbank for its USD 150 million green term loan, with USD 120 million outstanding as of 31 December 2024. Both green term facilities are amortised through semi-annual repayments of USD 7.5 million (USD 150 million) and USD 5 million (USD 100 million) with final maturity in the fourth quarter of 2027. On 2 February 2023, Scatec refinanced USD 100 million of the USD 193 million Bridge-to-Bond facility with USD 100 million green term loan with maturity in the fourth quarter 2027 provided by DNB, Nordea and Swedbank. The term loan is amortised through semi-annual repayments of USD 5 million starting from 2024. Vendor financing facility As of 31 December 2024, USD 200 million Vendor Financing provided by Norfund with maturity in 2028 was outstanding. This related to the acquisition of SN Power in the first quarter of 2021. USD 30 million of the Vendor Financing facility falls due in June 2025 and is classified as current liabilities as of 31 December 2024. Green Revolving credit facility The existing USD 180 million Revolving Credit Facility (RCF), provided by Nordea Bank, DNB, Swedbank and BNP Paribas, was extended in 2024 with maturity in 2027. The facility is a Multi Currency Facility and can be drawn in any currency agreed with the banks. Scatec had not drawn on the facility as of 31 December 2024. Overdraft facility Scatec had not drawn on the USD 5 million overdraft facility with Nordea as of 31 December 2024 and 31 December 2023. Covenants Bonds and corporate financing facilities are subject to the following financial covenants: ● Minimum liquidity ratio for the parent company and recourse group calculated as the sum of free cash and available undrawn credit facilities. ● Maximum debt to capitalisation ratio for the recourse group, calculated as gross debt, excluding Vendor financing and any permitted EPC financing (PowerChina debt), divided by the total capital of the recourse group, which includes gross debt and book equity. ● Interest coverage ratio is calculated as Cash Flow to Equity divided by the net interest costs of the Recourse Group. Covenants are tested at the end of each quarter. There is no indication that the Group will have difficulty complying with these covenants within 12 months of the reporting date. As of 31 December 2024 and as of 31 December 2023, Scatec was in compliance with all financial covenants for the above facilities. Other interest-bearing liabilities As of 31 December 2024, Scatec had NOK 500 million as current Other interest-bearing liabilities. PowerChina Guizhou Engineering Co (“PowerChina”) have provided a construction loan to Scatec for the Progressovska power plant in Ukraine and Scatec has provided a corporate and bank guarantee to PowerChina in support of this obligation. The last tranche, NOK 272 million (EUR 23 million, including interest) will be paid in 2025. In 2024 one of Scatec’s operating entities in Egypt made a USD 20 million draw down (equivalent to NOK 227 million as of 31 December 2024) on an Equity Bridge loan provided by EBRD in relation to the Egypt Green Hydrogen project. Scatec ASA has provided a corporate guarantee for its share in support of the obligation and it is classified as current other interest-bearing liabilities at year-end 2024. The facility is due in 2025. Scatec has no other recourse financing arrangements. Refer to Note 25 Guarantees and commitments for further details 166 Notes to the consolidated financial statements Overview of Corporate Financing Corporate financing Currency Denominated currency value (million) Maturity Carrying value 31 December 2024 (NOK million) Carrying value 31 December 2023 (NOK million) Green Bond EUR (Ticker: SCATC03 NO0010931181) EUR 114 Q3 2025 1,343 2,793 Green Bond NOK (Ticker: SCATC04 NO0012837030) NOK 1,000 Q1 2027 992 989 Green bond NOK (Ticker: SCATC05 NO0013144964) NOK 1,750 Q1 2028 1,727 - Total unsecured bonds 4,062 3,782 USD 150 million Green Term Loan USD 120 Q4 2027 1,352 1,374 USD 100 million Green Term Loan USD 90 Q4 2027 1,013 1,008 Total secured financing 2,364 2,383 Vendor financing (Norfund) USD 200 Q1 2028 2,270 2,038 Total unsecured financing 2,270 2,038 Revolving credit facility USD 180 Q3 2027 - 713 Overdraft facility USD 5 - - Total secured back-stop bank facilities - 713 Total principal amount 8,696 8,915 Accrued interest 182 164 Total corporate financing 8,878 9,079 Of which non-current 6,729 7,947 Of which current 2,150 1,132 Note 23 Non-recourse financing See Note 20 Financial instruments for accounting principle for financial liabilities recognised at amortised cost. The table below specifies non-recourse financing as of 31 December 2024 and 2023. The rate of interest is a calculated average per portfolio. Most of the loans are fixed or swapped to fixed rate interests, see Note 19 Financial risk management. NOK million Interest rate Maturity date 2024 2023 South Africa - Kenhardt 11.72% 2041 7,705 6,969 South Africa - Grootfontein 10.29% 2045 2,304 237 South Africa - Mogobe 9.27% 2036 446 - Egypt - Benban 5.21% 2041 3,217 3,074 Malaysia - QSP (Semenanjung) 6.00% 2035 1,760 1,656 Malaysia - Red Sol 4.48% 2028 243 236 Ukraine 7.74% 2029 736 868 Pakistan 11.71% 2037 681 637 Jordan 6.47% 2032 644 639 Tunisia 4.03% 2043 447 - Botswana 7.00% 2044 402 - Czech Republic 4.90% 2029 245 284 South Africa - Kalkbult, Linde and Dreunberg - - - 1,711 Vietnam - - - 345 Honduras - Agua Fria - - - 302 Total non-recourse financial liabilites 18,829 16,957 Of which non-current non- recourse financial liabilities 16,929 15,026 Of which current non-recourse financial liabilities 1,623 1,669 Of which accrued interest expense 277 262 Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 167 Repayment structure NOK million Loan repayment Interest payment Total 2025 1,623 1,599 3,222 2026 617 1,628 2,245 2027 616 1,583 2,199 2028 858 1,543 2,401 2029 607 1,405 2,012 2030 640 1,362 2,002 2031 727 1,319 2,046 2032 791 1,270 2,060 2033 918 1,211 2,129 2034 1,154 1,128 2,282 2035 1,228 1,026 2,254 2036 1,178 913 2,091 2037 1,332 786 2,118 2038 1,304 658 1,962 2039 1,392 528 1,920 2040 1,194 394 1,588 2041 1,427 251 1,678 2042 388 139 527 2043 367 90 458 2044 268 51 319 2045 210 16 226 Total future loan repayment 18,839 18,901 37,740 Scatec also holds NOK 337 million in non-current and NOK 17 million in current non-recourse project financing related to disposal group held for sale which is not included in the tables above. For details refer to Note 8 Sale of project assets and disposal group held for sale. Covenants Under the terms of the non-recourse financing agreements, Scatec is required to comply with several financial and non-financial covenants in different countries at the end of each annual and/or interim period. The key financial covenants include: - Historic and projected debt service coverage ratios (DSCR) - Debt service reserve account (DSRA) levels that Scatec is required to maintain equal to several months of revenues following the covenant reporting period - Debt service reserve account (DSRA) covering the next debt repayment - Equity ratio - Debt to equity ratio - Loan life cover ratio - Current ratio For four of the five companies operating in the Czech Republic, the non-recourse financing agreements include a cross-default clause within the Czech group. The agreements also contain restrictions on, inter alia, hedging policies, new activities and consents, amendments to the key agreements and insurance policies, pledges and guarantees, financial indebtedness and giving financial support, capital expenditures, and changes of shareholder structure and auditors, as well as several undertakings related to budgets, and financial and operational reporting. Ukraine The current non-recourse debt as of 31 December 2024 includes NOK 736 million in non-recourse debt in Ukraine. All of Scatec’s power plant companies in Ukraine with non-recourse financing are in breach of several covenants in the loan agreements as of 2024 and non-recourse debt is presented as current non-recourse project financing. Scatec has continuous and constructive dialogue with the lenders and the parties have agreed on a non-formalised “stand still”. Loan repayments are based on cash availability but classified as current with maturity date of principal payments in 2025 in the repayment structure table. It is expected that Scatec’s power plant companies in Ukraine will be in breach of several covenants in the foreseeable future. Pakistan The Sukhur project in Pakistan was awarded a “costs plus tariff” by the National Electric Power Regulatory Authority (NEPRA) in 2020. Revenue is recorded on a basis of a lower reference tariff and is subject to a “tariff true up” following approval by NEPRA. The process is expected to take approximately 18-24 months. Due to lower revenues during the tariff true up process, Scatec’s power plant companies in Pakistan faced a risk of non-compliance with applicable bank covenants. Scatec has agreed on a waiver until the project completion date which will occur after the tariff true up process is finalised. Non-recourse financing in Pakistan is classified as non-current at year-end. Except for the power plant companies mentioned above, there are no indications that Scatec will have difficulties complying with the covenants for its consolidated entities when they are be next tested. However, unforeseen events impacting the financial performance of the operating entities may occur as Scatec’s financial performance to a large degree relies on government adherence to contractual obligations and various laws and regulations. Further, Scatec is subject to political risk, including expropriation, changes in tax regulations, capital restrictions, financial stability and civil unrest in the countries in which it operates. 168 Notes to the consolidated financial statements Note 24 Trade payables and supplier finance NOK million 2024 2023 Trade payables 114 95 Trade payables that are part of supplier finance arrangements 367 199 Total trade and other payables 481 294 The Group has agreed financial arrangements with the corporate banks, offering extended payment terms related to supply of components for property, plant and equipment to projects under construction, from selected suppliers. Trade and other payables balance as of 31 December 2024 includes documentary credits (supplier finance arrangements) that are issued to the suppliers through Scatec ASA’s banking group (Nordea and DNB) as part of working capital management during construction. Suppliers receive payments by drawing on the documentary credits in accordance with the invoice payment terms (normally 60 days). Scatec settles the invoices with the issuing banks 150 days later. The documentary credits carry interest rates based on SOFR plus an agreed margin. The total interest expense in 2024 was NOK 10 million. There were non-cash transfers from supplier trade payables to payables to banks of NOK 286 million in 2024. NOK million 2024 Carrying amount of trade payables that are part of a supplier finance arrangement 367 Of which suppliers have received payment 262 Note 25 Guarantees and commitments Guarantee exposure The amounts specified below are total exposure on guarantees issued by Scatec ASA reflecting the maturity profile. The majority of the guarantees are issued on behalf of consolidated entities, except as specified in the table below. The fair value of the guarantees is immaterial on a consolidated basis; hence no liability is recognised. NOK million 31.12.2024 31.12.2025 31.12.2026 31.12.2027 Bid Bonds 244 233 233 233 SPV Performance / Commitments 664 427 301 273 Equity commitment 951 419 138 138 Performance Guarantees (EPC) 983 306 - - Warranty Guarantees (EPC) 529 429 23 - Other Payment Guarantees 490 14 14 14 O&M Performance (3rd Party) 27 27 - - Total 3,888 1,855 709 658 Guarantees For projects under development, Scatec is often required to issue Bid Bonds to secure commitment during the submission of project bids. SPV performance and commitment guarantees are issued to cover certain obligations under PPAs and implementation agreements. These obligations are connected to project performance where Scatec is in control and hold the O&M and the asset management agreements. Equity commitments includes security for equity commitments in project companies during construction where project lenders disburse debt before equity is injected. Equity commitments also include debt service reserve guarantees replacing cash reserves in project companies. EPC performance guarantees cover contractual obligations under the construction phase and typically represents 10%-15% of the contract value. Warranty Gurantees typically represent 2.5%-5% of the contract value and are issued to secure operational performance for the first two years of operation. Scatec provides other payment guarantees to support for the drawn Equity Bride loan (EBL) in Egypt and construction loan in Ukraine, refer to note 22 Financing. Guarantee facilities The guarantees issued by Scatec ASA are issued under the Guarantee Facility Agreement (GFA) with Nordea Bank as agent, and Nordea Bank, BNP Paribas, Swedbank and DNB as guarantee instrument lenders. Export Finance Norway (Eksfin) normally covers the guarantees issued under the GFA. Eksfin can issue counter indemnity of 50% in favor of the issuing banks. Per 31 December 2024, Scatec was in compliance with all covenants in the GFA. In addition to the GFA, Scatec has guarantee facilities with Standard Bank South Africa, Lombard Insurance Company in South Africa and First Randbank in South Africa. These facilities are used mostly to cover short-term bid bonds and some SPV performance obligations. Scatec has also negotiated agreements with four European insurance companies providing sureties. None of these are currently in use. Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 169 Note 26 Consolidated subsidiaries The consolidated financial statement of Scatec comprises more than 200 legal companies controlled by Scatec ASA. The following table includes material consolidated subsidiaries, including material holding companies. Consolidated economic interests correspond to the voting interests if not otherwise stated. For subsidiaries of the ultimate parent’s subsidiaries, the economic interests stated are the mathematically indirect consolidated economic interests. For information on associated companies and joint venture companies, refer to Note 13 Investments in JV and associated companies. Company Economic interests 2024 Norway SN Power AS 100.00% Netherlands Scatec Solar Netherlands BV 100.00% Czech Republic Scatec Solar s.r.o. 100.00% Signo Solar PV1 s.r.o. 100.00% Signo Solar PP01 s.r.o. 100.00% Signo Solar PP02 s.r.o. 100.00% Signo Solar PP04 s.r.o. 100.00% FVE Sulkov 3, s.r.o. 100.00% Poland Scatec Solutions Poland SP. Z.o.o. 100.00% PV Konin SP. Z.o.o. 100.00% Ukraine Scatec Solar Solutions Ukraine LLC 100.00% Chysta Energhiaa 2011 LLC 60.00% Boguslav Energy LLC 100.00% Greenteco SES LLC 100.00% Rengy Bioenergy LLC 51.00% Company Economic interests 2024 PV Progressovka Alpha LLC 100.00% PV Progressovka Beta LLC 100.00% PV Progressovka Gamma LLC 100.00% Jordan Scatec Solar Jordan (EPC) 100.00% Scatec Solar AS/ Jordan PSC 100.00% Anwar Al Ardh For Solar Energy Generation PSC 50.10% Ardh Al Amal For Solar Energy Generation PSC 50.10% Tunisia Scatec Solar Tunisia Management Services SARL 100.00% Scatec Solar Tunisia Operations SARL 100.00% Scatec Solar Tunisia Constructions SARL 100.00% Scatec Tozeur PV Power Sarl 51.00% Scatec Sidi Bouzid Mezzouna PV Power 51.00% Egypt Scatec Solar Solutions Egypt LLC 100.00% Aswan PV Power SAE 51.00% Daraw Solar Power SAE 51.00% Kom Ombo Renewable Energy SAE 51.00% Red Sea Solar Power SAE. 51.00% Upper Egypt Solar Power 51.00% Zafarana Power SAE 51.00% Egypt Green Hydrogen SAE 46.20% EGH for Renewable Energy SAE 56.30% Egypt Green Ammonia SAE 100.00% Damietta Green Ammonia SAE 75.00% Obelisk Solar Power SAE 100.00% South Africa Scatec Solar Africa (Pty) Ltd 100.00% Scatec Solar Management Services (Pty) Ltd 100.00% Scatec Solar SA 163 (Pty) Ltd. 92.00% Scatec Solar SA (pty) Ltd. 100.00% Scatec Hybrid EPC (Pty) Ltd 75.00% Company Economic interests 2024 Scatec Kenhardt 1 (Pty) Ltd 51.00% Scatec Kenhardt 2 (Pty) Ltd 51.00% Scatec Kenhardt 3 (Pty) Ltd 51.00% Scatec R5 Construction (Pty.) Ltd. 75.00% Scatec R5 Operations (Pty.) Ltd. 51.00% Grootfontein PV1 (RF) (Pty) Ltd 51.00% Grootfontein PV2 (RF) (Pty) Ltd 51.00% Grootfontein PV3 (RF) (Pty) Ltd 51.00% Mogobe BESS (Pty) Ltd 51.00% Scatec Renewable EPC (Pty) Ltd 75.00% Scatec Renewable Operations (Pty) Ltd 100.00% Botswana Scatec Operations Botswana (Pty) Ltd 100.00% Selebi Phikwe Solar Proprietary Limited 100.00% Mmadinare Solar Proprietary Limited 100.00% Brazil Scatec Brasil Renováveis Ltda 100.00% Aruna Energias Renováveis Ltda. 100.00% Hélios Energias Renováveis Ltda. 100.00% Fênix Energias Renováveis Ltda. 100.00% Hinata Energias Renováveis Ltda. 100.00% Urucuia EPC Solar Ltda. 100.00% Honduras Scatec Solar Honduras SA 100.00% Energias Solares S.A. 70.00% Fotovoltaica Los Prados S.A. 70.00% Fotovoltaica Surena S.A. 70.00% Generaciones Energeticas S.A. 70.00% Produccion de Energia Solar y Demas Renovables S.A DE C.V (Agua Fria) 40.00% 170 Notes to the consolidated financial statements Company Economic interests 2024 Malaysia Scatec Solar Solutions Malaysia Sdn Bhd 100.00% Quantum Solar Park (Kedah) Sdn Bhd 1) 100.00% Quantum Solar Park (Melaka) Sdn Bhd 1) 100.00% Quantum Solar Park (Terengganu) Sdn Bhd 1) 100.00% Quantum Solar Park Semenanjung Sdn Bhd 1) 100.00% Redsol Sdn Bhd 100.00% Philippines SN Power Philippines Inc. 100.00% India Scatec Renewables India Private Ltd 100.00% Scatec India Renewables One Private Limited 100.00% Scatec India Renewables Two Private Limited 100.00% Pakistan Helios Power Ltd 75.00% HNDS Energy Ltd 75.00% Meridian Energy Ltd 75.00% Scatec Solar Pvt Ltd (Pakistan) 100.00% Vietnam Scatec Solar Solutions Vietnam Co. Ltd. 100.00% Dam Nai Wind Power JSC 100.00% 1) The consolidated economic interest in the Malaysian project companies represents Scatec’s share of the contributed equity and retained earnings in the project companies as of the reporting date. Scatec’s average economic interest through the PPA tenor is estimated to be 95% based on the Group’s right to economic return obtained through shareholdings and other contractual arrangements. The average economic interest may be subject to change. Note 27 Non-controlling interests Accounting principle non-controlling interests Normally Scatec enters into partnerships for the shareholding of the power plant company owning the power plants while maintaining control, leading to a material non-controlling interest (NCI). Non- controlling interests are calculated on the respective subsidiaries’ stand-alone reporting, before eliminations of intercompany transactions. Furthermore, unrealised intercompany profits relating to depreciable assets (power plants) are viewed as being realised gradually over the remaining economic life of the asset. Consequently, the specification of a non-controlling interest in the Group financial statements will differ from the non-controlling interests calculated on the basis of the respective subsidiaries’ stand-alone reporting. The change in the NCI balance from year to year is driven by the NCIs share of profit or loss and other comprehensive income, capital injections from and dividends paid to NCIs, and foreign exchange differences. Note 26 Consolidated subsidiaries shows all material entities with a NCI share. Total balances of material non-controlling interest NOK million 2024 2023 South Africa 1,181 997 Egypt 430 394 Honduras 418 327 Jordan 118 191 Pakistan 7 28 Ukraine -25 -60 Other 5 6 Total non-controlling interests 2,136 1,884 Profit/(loss) allocated to material non-controlling interest NOK million 2024 2023 South Africa 29 449 Egypt 23 -7 Honduras 96 12 Jordan 15 15 Pakistan -23 -9 Ukraine 38 28 Other -2 8 Total non-controlling interests 177 494 Financial information of subsidiaries that have material non-controlling interests is provided below. Profit and loss figures excludes gains from the sale of project assets: Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 171 Summarised statement of profit or loss for 2024 (before group eliminations) NOK million Revenues Operating expenses Operating profit Net financial expenses Profit before income tax Profit/(loss) for the period Profit/loss attributable to NCI Dividends paid to NCI 1) #REF! South Africa 3,823 (2,493) 1,330 (996) 335 282 29 241 Egypt 644 (311) 333 (258) 76 48 23 50 Honduras 397 (195) 202 (27) 175 175 96 - Jordan 138 (71) 67 (34) 33 31 15 104 Pakistan 74 (62) 13 (105) (92) (93) (23) - Ukraine 149 (17) 132 (60) 71 84 38 - Other 16 (8) 7 (10) (3) (2) (2) - 1) Excluding repayments of shareholders loans Summarised statement of profit or loss for 2023 (before group eliminations) NOK million Revenues Operating expenses Operating profit Net financial expenses Profit before income tax Profit/(loss) for the period Profit/loss attributable to NCI Dividends paid to NCI 1) #REF! South Africa 8,825 (7,968) 857 41 903 1,373 449 121 Egypt 646 (296) 350 (337) 13 (14) (7) - Honduras 232 (104) 127 (88) 39 39 12 - Jordan 130 (68) 62 (31) 31 30 15 - Pakistan 1 (6) (5) (31) (36) (47) (9) - Ukraine 153 (37) 116 (39) 77 57 28 - Other 125 (62) 62 (43) 19 17 8 - 1) Excluding repayments of shareholders loans Summarised statement of financial position as of 31 December 2024 Attributable to NOK million Property, plant and equipment Other non- current asstes Cash and cash equivalent Other current assets Non- recourse financing Other non- current liabilities Current liabilities Total equity Non- controlling interests Equity holders of the parent #REF! South Africa 10,348 1,255 934 2,096 (10,454) (421) (1,715) 2,044 1,181 861 Egypt 3,881 1,369 532 194 (3,217) (1,383) (521) 854 430 424 Honduras 1,196 9 32 72 - (368) (17) 925 418 507 Jordan 704 1 145 31 (494) (71) (44) 272 118 154 Pakistan 1,204 0 28 41 (681) (432) (81) 79 7 72 Ukraine 455 413 39 (0) (292) (753) (20) (158) (25) (133) Other 226 0 111 261 (447) (10) (126) 15 5 10 Summarised statement of financial position as of 31 December 2023 Attributable to NOK million Property, plant and equipment Other non- current asstes Cash and cash equivalent Other current assets Non- recourse financing Other non- current liabilities Current liabilities Total equity Non- controlling interests Equity holders of the parent #REF! South Africa 9,593 1,094 652 1,260 (8,917) (717) (1,658) 1,308 997 309 Egypt 3,380 1,057 521 108 (3,074) (1,008) (181) 803 394 410 Honduras 1,217 10 179 130 (302) (357) (40) 837 327 510 Jordan 841 1 419 23 (639) (82) (97) 467 191 276 Pakistan 941 - 133 38 (637) (231) (166) 79 28 50 Ukraine 431 368 5 (1) (348) (662) (21) (228) (60) (167) Other - (0) (3) 138 - (31) (129) (25) 6 (32) 172 Notes to the consolidated financial statements Note 28 Transactions with related parties Related parties include affiliates, associates, joint ventures, and other companies where the Group has significant influence, as well as the Executive Management and the Board of Directors. All related party transactions have been carried out as part of the normal course of business and at arm’s length terms. See Note 26 for information about consolidated subsidiaries. No significant impairment is booked for expected credit loss on intercompany receivables within the Group. See Note 13 Investments in joint ventures and associated companies for an overview of the companies included and further information about the investments. Transactions with joint ventures and associates consist primarily of financing provided to the companies and dividends received from the companies. Transactions also include the sale of development rights, asset management and OM services provided by consolidated entities to equity consolidated entities. See Note 16 Guarantees, contractual obligations and contingent liabilities in the Parent company financial statements for an overview of the guarantees provided by Scatec ASA to Group companies. For remuneration to management including information about the share purchase programme, see Note 3 Employee benefits and further details in Note 4 Personnel expenses in the Parent company financial statements. Scatec has made loans to Executive Management given in relation to the long-term incentive programme which amount to NOK 0.3 million (0.2) as of 31 December 2024. Note 29 Change in accounting policies New standards and interpretations The Group has applied the following standards and amendments for the first time for its annual reporting period commencing 1 January 2024: - Classification of liabilities as current or non-current and as non-current liabilities with covenants – Amendments to IAS 1; - Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7. As a result of the adoption of the amendments, the Group has provided new disclosures for liabilities under supplier finance arrangements as well as the associated cash flows in Note 24 Trade payables and supplier finance and new disclosures related to the corporate debt and non-recourse project debt in Note 22 and Note 23. The Group has not elected to early adopt Amendments to IAS 21 The effects of changes in foreign exchange rates effective from 1 January 2025. The amendments specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments are not expected to have a material impact on the Group’s consolidated financial statements. The Group has not elected to early adopt Amendments to IFRS 9 and IFRS 7 related to the classification and measurement of financial instruments effective from 1 January 2026. The amendments clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for certain financial liabilities settled through an electronic cash transfer system, add new disclosure for certain instruments with contractual terms that can change cash flows and update the disclosures for equity instruments designated at fair value through other comprehensive income. The amendments are not expected to have a material impact on the Group’s operations or financial statements. The Group has not elected to early adopt IFRS 18 Presentation and disclosure in financial statements effective from 1 January 2027. The impact of IFRS 18 on presentation and disclosure is expected to be pervasive, particularly in relation to the statement of financial performance and providing management-defined performance measures within the financial statements. Management will assess the detailed implications of applying the new standard to the Group consolidated financial statements. The Group does not expect a significant change in the information currently disclosed in the notes because the requirements for disclosing material information remains unchanged; however, the way in which information is grouped may change as a result of the aggregation/ disaggregation principles. In addition, there will be significant new disclosures required for management-defined performance measures, a break-down of the nature of expenses for line items presented by function in the operating category of the statement of profit or loss, and, for the first annual period of application of IFRS 18 a reconciliation for each line item in the statement of profit or loss between the restated amounts presented by applying IFRS 18 and the amounts previously presented by applying IAS 1. Notes to the consolidated financial statements Scatec ASA - Annual Report 2024 173 Note 30 Subsequent events Adjusting subsequent events No adjusting events occurred after the balance sheet date. Non-adjusting subsequent event In January 2025, the Sukkur project in Pakistan was awarded an interim relief tariff after approval by the National Electric Power Regulatory Authority (NEPRA). The award includes a compensation amount and a higher interim tariff, which will positively impact the projects financials. The compensation amount will be recorded in the first quarter of 2025 with an impact of approximately NOK 52 million on a consolidated basis and NOK 39 million on a proportionate basis. As described in the Note 18, the tariff true-up is a routine process for NEPRA projects and another approval for the final granted tariff is expected within 18 to 24 months. On 5 February 2025, Scatec ASA successfully issued a NOK 1,250 million 4-year senior unsecured green bond with a coupon of 3 months NIBOR + 3.15% p.a. Net proceeds from the bond and available liquidity were used to repay the EUR 114 million bonds outstanding with ticker “SCATC03 ESG” (ISIN NO0010931181). In conjunction with the bond issue, on 6 February 2025, Scatec bought back EUR 9.1 million, and on 20 February 2025, remaining portion of the outstanding bond was bought back. On 10 February 2025, Alberto Gambacorta has begun his role as EVP Sub-Saharan Africa. In accordance with the terms of the share-based incentive programme for leading employees, Alberto Gambacorta, has been granted an additional 12,707 share options. Each share option gives the right to subscribe for and be allotted one share in Scatec ASA. Identical to the strike price of the options granted to leading employees in Scatec’s long term incentive programme in January 2025, the strike price of the options is set to NOK 78.66 per share. The options will lapse if not exercised by January 2030. The option grant is divided into three tranches whereby 1/3 vests each year over three years, with the first tranche vesting 1 January 2026. On 13 February 2025, Scatec ASA divests its 100 percent stake in the 39-megawatt (MW) Dam Nai wind farm and the associated operating company in Vietnam to Sustainable Asia Renewable Assets, a utility- scale renewable energy platform of the SUSI Asia Energy Transition Fund. Scatec has received the initial payment of USD 27 million, with potential for additional earn-out payments of up to USD 13 million that are subject to certain conditions being fulfilled prior to May 2026. At the Scatec Group level, the transaction generated an accounting gain of approximately USD 8 million on a proportionate and consolidated basis, including a fair value estimate of the contingent consideration, which will be recognised in the first quarter 2025. Following the transaction Scatec will exit all operations in Vietnam. On 17 February 2025, Scatec announced that Morten Henriksen has informed the company that he resigns from his position as a member of the Board of Directors, effective 17 February 2025. On 28 February 2025, Scatec divests its 51 percent stake in the African hydropower joint venture with Norfund and British International Investment (BII) in line with the company’s strategy. The transaction closed at an agreed sales price of USD 167 million, based on a valuation date of 31 December 2023. The net proceeds from the transaction are estimated at USD 161 million, adjusted for cash movements between the valuation date and the closing date. The sales agreement includes the operating 255 MW Bujagali hydropower plant in Uganda, and a development portfolio consisting of the 361 MW Mpatamanga in Malawi and the 206 MW Ruzizi III at the border of Rwanda, DRC, and Burundi. As part of the transaction, the Hydro Africa team will be transferred to TotalEnergies in an entity incorporated as SN Power AS. The transaction has generated a total proportionate accounting effect of approximately USD 30 million and consolidated accounting effect of approximately USD 50 million, to a large extent driven by foreign currency effects, which will be recognised in the first quarter of 2025. . 174 Parent company financial statements Parent company Financial statements and notes Statement of income 175 Statement of financial position - assets 175 Statement of financial position – equity and liabilities 176 Statement of cash flow 177 Notes to the parent company financial statements 178 Note 1 General information 178 Note 2 Accounting principles 178 Note 3 Revenues 179 Note 4 Personnel expenses, number of employees and auditor’s fee 180 Note 5 Other operating expenses 183 Note 6 Provision for bad debt 184 Note 7 Financial income and expenses 184 Note 8 Tax 184 Note 9 Property, plant and equipment 185 Note 10 Investments in subsidiaries, joint ventures and associated companies 185 Note 11 Inventory 185 Note 12 Cash and cash equivalents 186 Note 13 Equity and shareholder information 186 Note 14 Corporate financing 187 Note 15 Other current liabilities 187 Note 16 Guarantees, contractual obligations and contingent liabilities 187 Note 17 Transactions with related parties 188 Note 18 Subsequent events 188 Parent company financial statements Scatec ASA - Annual Report 2024 175 Statement of income 1 JANUARY – 31 DECEMBER NOK million Note 2024 2023 Revenues 3 1,428 6,271 Total revenues 1,428 6,271 Costs of sales -852 -5,570 Personnel expenses 4 -214 -284 Other operating expenses 5, 6, 17 -203 -189 Depreciation, amortisation and impairment 9, 11 -54 -59 Operating profit/(loss) 107 169 Interest and other financial income 7, 17 825 392 Interest and other financial expenses 7, 17 -890 -707 Net foreign exchange gain/(loss) -74 -33 Profit/(loss) before tax -32 -179 Income tax (expense)/benefit 8 -19 -220 Profit/(loss) for the period -52 -399 Allocation of profit/(loss) for the period Transfer to/(from) other equity 13 -52 -399 Total allocation of profit/(loss) for the period -52 -399 Statement of financial position 1 JANUARY – 31 DECEMBER NOK million Note 2024 2023 Non-current assets Deferred tax assets 8 61 35 Property plant and equipment 9 138 86 Investments in subsidiaries, joint ventures and associated companies 10 17,140 16,025 Loan to group companies 17 2,923 2,783 Interest rate swap (cash flow hedge) 14 22 64 Other non-current receivables 60 53 Total non-current assets 20,343 19,047 Current assets Inventory 11 363 996 Trade and other receivables 6 58 68 Trade and other receivables group companies 3, 17 605 755 Other current assets 36 30 Cash and cash equivalents 12 627 173 Total current assets 1,689 2,022 Total assets 22,032 21,070 176 Parent company financial statements Statement of financial position AS OF 31 DECEMBER NOK million Note 2024 2023 Paid in capital Share capital 13 5 5 Share premium 13 13,141 11,761 Total paid in capital 13,146 11,765 Other equity Other equity 13 -1,721 -1,520 Reserve for valuation variances 13 -37 51 Total other equity -1,757 -1,469 Total equity 11,389 10,296 Non-current liabilities Corporate financing 14 6,729 7,947 Liabilities to group companies 17 19 17 Other financial liabilities 270 - Other non-current liabilities 1 2 Total non-current liabilities 7,020 7,966 Current liabilities Trade and other payables 390 226 Trade payables group companies 289 444 Public duties payable 21 24 Other current liabilities 15 955 1,146 Other current financial liabilities - 713 Current corporate financing 14 1,968 255 Total current liabilities 3,624 2,808 Total liabilities 10,643 10,774 Total equity and liabilities 22,032 21,070 Oslo, 31 March 2025 The Board of Directors Scatec ASA Parent company financial statements Scatec ASA - Annual Report 2024 177 Statement of cash flow 1 JANUARY – 31 DECEMBER NOK million Notes 2024 2023 Cash flow from operating activities Profit/(loss) before tax -32 -179 Gain from sale of subsidiaries and associated companies -372 - Depreciation, amortisation and impairment 9 54 59 Interest and other financial income 7 -825 -392 Interest and other financial expenses 7 890 707 Foreign exchange gain/(loss) 74 33 Witthholding tax on received dividends 8 -19 -3 (Increase)/decrease in inventories 11 705 394 (Increase)/decrease in trade and other receivables 286 -223 Increase/(decrease) in trade and other payables -70 149 (Increase)/decrease in other assets and liabilities -179 106 Net cash flow from operating activities 512 651 Cash flows from investing activities Investments in property, plant and equipment 9 -58 -33 Interest received 17 283 252 Increase in loans to subsidiaries -302 -742 Repayments of loans to subsidiaries 284 281 Investments in subsidiaries and associated companies 10 -609 -1,266 Repayments of investments in subsidiaries and associated companies 10 984 361 Proceeds from sale of subsidiaries and associated companies 10 522 - Dividends from and capital decrease in subsidiaries 542 140 Net cash flow used in investing activities 1,646 -1,007 NOK million Notes 2024 2023 Cash flow from financing activities Dividends paid to equity holders 13 - -308 Interest paid -857 -638 Proceeds from corporate financing 14 -913 713 Net cash flow from financing activities -1,770 -233 Net increase/(decrease) in cash and cash equivalents 388 -588 Cash and cash equivalents at beginning of period 12 173 811 Translation effect on cash and cash equivalents 46 -75 Translation effect from difference between average and year-end exchange rate 20 25 Cash and cash equivalents at end of period 12 627 173 178 Notes to the parent company financial statements Notes to the parent company financial statements Note 1 General information Scatec ASA is incorporated and domiciled in Norway. The address of its registered office is Askekroken 11, NO-0277 OSLO, Norway. Scatec was established on 2 February 2007. Scatec ASA (“the Company”), its subsidiaries and investments in associated companies and joint ventures (“the Group” or “Scatec”) is a leading renewable power producer, delivering affordable and clean energy worldwide. As a long-term player, Scatec develops, builds, owns and operates solar, wind and hydro power plants and storage solutions. The Company is listed on the Oslo Stock Exchange. The consolidated financial statements for the full year 2024 were authorized for issue in accordance with a resolution by the Board of Directors on 30 March 2025. Note 2 Accounting principles Basis for preparation The financial statements of Scatec ASA are prepared in accordance with the Norwegian Accounting Act of 1998 and Norwegian Generally Accepted Accounting Principles (NGAAP). The financial statements have been prepared on a historical cost basis. Accounting estimates and judgements In preparing the financial statements, management has made assumptions and estimates about future events and applied judgements that affect the reported values of assets, liabilities, revenues, expenses, and related disclosures. Therefore, future actual results may differ from current figures. Foreign currency translation The functional currency of the Company is US dollar (USD). USD is the currency which primarily affects the financials including corporate financing, income from dividends and revenue from construction activities. The financial statements are presented in NOK. The assets and liabilities are translated into NOK at the rate of exchange prevailing at the end of reporting period and their income statement is translated at average exchange rates. The exchange differences arising on translation are recognised in equity. Revenues and cost of sales Scatec ASA develops project rights that are the basis for construction of power plants. Revenues from sale of project rights are recognised upon the transfer of title. Projects in work in progress are expensed as cost of sale upon the transfer of title or when a project is abandoned and impaired. Revenues from construction services are based on fixed price contracts and are accounted for using the percentage of completion method. The stage of completion of a contract is determined by actual cost incurred over total estimated costs to complete. Incurred costs include all direct materials, costs for modules, labour, subcontractor costs, and other direct costs related to contract performance. Scatec ASA periodically revise contract margin estimates and immediately recognises any losses on onerous contracts. Some construction contracts include product warranties. The expected warranty amounts are expensed at the time of sale and are adjusted for subsequent changes in assumptions or actual outcomes. Further, Scatec ASA derives revenues from the allocation of headquarter costs to its subsidiaries. Revenues from the sale of intercompany services are recognised when the services are delivered. Employee benefits Wages, salaries, bonuses, pension and social security contributions, paid annual leave and sick leave are accrued in the period in which the associated services are rendered by employees of the Company. The Company has pension plans for employees that are classified as defined contribution plans. Contributions to defined contribution schemes are recognised in the statement of profit or loss in the period in which the contribution amounts are earned by the employees. The Board of Directors has established an option program for leading employees of the company. The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognised in personnel expenses, together with a corresponding increase in equity over the vesting period. For further information on accounting principle and share options refer to Note 3 – Employee benefits in the consolidated financials. For further information refer Note 4 – Personnel expenses, number of employees and auditor’s fee. Income tax expense Income tax expense comprises current tax and changes in deferred tax. Current tax is the expected tax payable on the taxable income for Notes to the parent company financial statements Scatec ASA - Annual Report 2024 179 the year and any adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. In order for a deferred tax asset to be recognised based on future taxable profits, convincing evidence is required. Balance sheet classification Current assets and liabilities consist of receivables and payables due within one year, as well as project rights. Other balance sheet items are classified as non-current assets and liabilities. Property, plant and equipment Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses. Property, plant and equipment are depreciated on a straight-line basis over their expected useful life, from the date the assets are taken into use. Subsidiaries and investment in associated companies Subsidiaries are entities controlled by Scatec ASA. Subsidiaries and investment in associated companies are accounted for using the cost method and are recognised at cost less impairment. The cost is increased when funds are added through capital increases. Dividends to be received are recognised at the date the dividend is declared by the general meeting of the subsidiary. To the extent that the dividend relates to distribution of results from the period Scatec ASA has owned the subsidiary, it is recognised as income. Dividends which are repayment of invested capital are recognised as a reduction of the investment in the subsidiary. Inventories Inventories are measured at the lower of cost and net realisable value. Inventories consist primarily of project assets in various stages of development. Capitalised development costs include legal, consulting, permitting, and other similar costs such as interconnection or transmission upgrade costs as well as directly attributable payroll expenses, travel expenses and other expenses related to developing the project rights. Scatec reviews project assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a project commercially viable if it is anticipated to be realised with a margin once it is either fully developed or fully constructed. Scatec considers a partially developed project commercially viable if the anticipated selling price is higher than the carrying value of the related project assets. A number of factors are assessed to determine if the project will be profitable, the most notable is whether there are any changes in environmental, ecological, permitting, or regulatory conditions that impact the project. Cash and cash equivalents Cash includes cash in hand and at bank. Cash equivalents are short- term liquid investments that can be immediately converted into a known amount of cash and have a maximum term to maturity of three months. In the statement of cash flows, the overdraft facility is presented gross as part of changes in current liabilities. Financial liabilities Interest-bearing borrowings are initially recognised at cost. After initial recognition, such financial liabilities are measured at amortised costs using the effective interest method. Transaction costs are taken into account when calculating amortised cost. Trade payables are carried at cost. Dividends On 2 November 2023, the Board of Directors announced its decision to change the dividend policy to no dividend. Events after the reporting period New information on the Company’s financial position on the end of the reporting period which becomes known after the reporting period, is recorded in the annual accounts. Events after the reporting period that do not affect the Company’s financial position on the end of the reporting period, but which will affect the Company’s financial position in the future, are disclosed if significant. Statement of cash flow The cash flow statement is prepared using the indirect method. Note 3 Revenues Revenue by business area NOK million 2024 2023 Services 1,024 6,252 Other revenue 404 19 Sum 1,428 6,271 Services comprise EPC services, sale of project rights and management services – all rendered to Group companies and associates. 180 Notes to the parent company financial statements Revenue by geographical distribution NOK million 2024 2023 Pakistan - 462 Netherlands 38 49 South-Africa 632 5,658 Ukraine 4 3 Egypt 11 36 Brazil 5 37 Botswana 196 - Tunisia 120 - Argentina - 2 Malaysia 3 3 Honduras 1 1 France 1 1 India 12 - Philippines 1 - Sum 1,024 6,252 Refer to Note 17 - Transactions with related parties for further information. Note 4 Personnel expenses, number of employees and auditor’s fee Personnel expenses NOK million 2024 2023 Salaries 168 225 Share-based payment 29 28 Payroll tax 31 43 Pension costs 15 18 Other benefits and personnel costs 5 7 Capitalised to inventory -36 -38 Total personnel expenses 214 284 The average number of FTEs that has been employed in the company through 2024 was 110 (144). Pension costs The Company has a defined contribution plan in line with the requirement of the law. NOK 15 million (18) is expensed related to the defined contribution plan in 2024. Notes to the parent company financial statements Scatec ASA - Annual Report 2024 181 Paid salaries and personnel expenses for the management of Scatec ASA 2024 Salary 1) Bonus Number of options awarded Exercise of share options Out- standing share options Other benefits 4) Pensio n cost Loans outstanding NOK thousand Title Terje Pilskog Chief Executive Officer 4,280 1,985 60 - 189 17 192 34 Hans Jakob Hegge Chief Financial Officer 3,795 1,547 54 - 122 17 188 34 Siobhan Minnaar EVP General Counsel 2,339 1,005 31 - 60 17 186 34 Roar Haugland EVP People, Sustainability & Digitalisation 2,845 1,004 33 - 116 17 191 34 Pål Helsing EVP Operations 2,883 1,215 38 - 132 17 188 34 Ann Mari Lillejord EVP Latam/Europe 2,578 1,036 34 - 78 17 185 34 Pål Strøm 2) EVP Operations & Maintenance 1,454 587 31 - 86 11 120 25 1) Including holiday allowance accrued in 2024 2) Left EMT 15.08.2024 2023 Salary 1) Bonus 2) Number of options awarded Exercise of share options Other benefits 4) Pensio n cost Loans outstanding NOK thousand Title Out- standing share options Terje Pilskog Chief Executive Officer 3,992 1,444 57 - 129 158 b) 179 - Hans Jakob Hegge 3) Chief Financial Officer 2,895 1,021 68 - 68 1513 a) 146 - Siobhan Minnaar 2) EVP General Counsel 2,009 825 13 - 29 16 173 - Roar Haugland EVP People, Sustainability & Digital 2,262 882 31 - 83 143 b) 180 - Pål Helsing EVP Solutions 2,601 1,045 36 - 94 152 b) 177 - Ann-Mari Lillejord EVP Latam/Europe 2,179 662 29 - 43 16 173 - Pål Strøm EVP Operations & Maintenance 2,102 800 29 - 55 16 176 - Kate Bragg EVP People, Strategy & Digital 2,294 8) 29 - - 16 172 - Snorre Valdimarsson 5) EVP General Counsel 480 - - - - 1 48 - Mikkel Tørud 6) EVP Chief Financial Officer / EVP MENA Green H2 2,145 - 41 - - 175 b) 149 - Torstein Berntsen 7) Interim EVP MENA/Green H2 497 - 36 - 93 138 38 - 1) Including holiday allowance accrued in 2023 2) Joined EMT 01.02.2023 3) Joined Scatec and EMT 01.03.2023 4) Includes benefits such as insurances, mobile, broadband, or other allowances a) Includes a sign-on bonus of 1,500,000 NOK b) Includes stock options converted to cash payment 5) Left Scatec 31.01.2023 6) CFO between 01.01.2023 – 31.03.2023. EVP MENA/Green H2 between 01.03.2023 – 31.08.2023 7) Interim EVP MENA/Green H2 between 01.01.2023 – 28.02.2023 8) Left Scatec before bonus pay-out March 2024 182 Notes to the parent company financial statements Remuneration for the Board of Directors 1) 2024 2023 NOK thousand Board remuneration 2) Audit committee Remuneration committee Nomination committee Total remuneration 2024 Board remuneration Audit committee Remuneration committee Nomination committee Total remuneration 2023 Jørgen Kildahl 2) 596 a) 67 55 - 718 - - - - - Jørgen Kildahl 3) 282 a) 32 - - 314 369 93 - - 462 John Andersen Jr. 4) 195 32 26 - 253 576 93 77 - 746 Jan Skogseth - - - - - 119 - 18 - 137 Gisele Marchang 125 53 - - 178 369 155 - - 524 Maria Moræus Hanssen 390 67 19 - 476 369 - 57 - 426 Mette Krogsrud 390 - 60 - 450 369 - 57 - 426 Espen Gundersen 390 143 - - 533 369 93 - - 462 Morten Henriksen 390 - 60 - 450 250 - 38 - 288 Maria Tallaksen 265 67 - - 332 - - - - - Pål Kildemo 265 - 41 - 306 - - - - - Kristine Ryssdal - - - 66 66 - - - 62 62 Svein Høgseth - - - - - - - - 13 13 Mats Holm - - - 44 44 - - - 41 41 Annie Bersagel - - - 44 44 - - - 41 41 Christian Rom - - - 44 44 - - - 28 28 1) Board remuneration is reported on an accrual basis. Remuneration is agreed at the April Annual General Meeting (AGM), to be paid after the AGM of the following year. 2) Chairman of the Board from the Annual General Meeting in April 2024 a) Includes meeting allowance to members who reside outside of Norway (167) 3) Board member until the Annual General Meeting in April 2024 a) Includes meeting allowance to members who reside outside of Norway (157) 4) Chairman of the Board until the Annual General Meeting in April 2024 For more information about remuneration to management, refer to Note 3 Employee benefits in the consolidated financial statement of the Group and the Remuneration Report for 2024. Audit NOK million 2024 2023 Audit fees 5 5 Other attestation services 2 2 Tax services - - Other services - - Total 7 7 VAT is not included in the numbers above. Note 5 Other operating expenses NOK million 2024 2023 Facilities 19 21 Professional fees 91 60 IT and communications 42 42 Travel costs 10 13 O&M costs 1 2 Other costs 38 51 Total other operating expenses 203 189 Notes to the parent company financial statements Scatec ASA - Annual Report 2024 183 Note 6 Provision for bad debt The Company has during 2024 recognized NOK 0 million (13.3) in realized bad debt losses on receivables related to discontinued development projects. No further provision for bad debt has been made as the collection risk of the outstanding receivables is considered low. Note 7 Financial income and expenses Interest and other financial income NOK million 2024 2023 Interest income from group companies 249 218 Other interest income 34 34 Dividend from group companies 542 140 Total interest and other financial income 825 392 Interest and other financial expenses NOK million 2024 2023 External interest expenses -789 -638 Impairment of financial assets -32 - Other financial expenses -68 -69 Total interest and other financial expenses -890 -707 The write down of financial assets in 2024 is related to impairment of shares, following abandoned development projects in subsidiaries of Scatec ASA. Refer to Note 10 in the consolidated financial statement of the Group for details related to the impairment testing. During 2024, interest amounting to NOK 789 million (638) was expensed for corporate financing, refer to Note 22 Financing in the consolidated financial statement of the Group for further details. The increase in interest expenses is primarily explained by increase in interest rates. Note 8 Tax NOK million 2024 2023 Income tax expense: Withholding tax on received dividends 19 3 Change in deferred tax - 204 Taxes related to previous years - 12 Total tax expense/(income) 19 220 Tax basis: Profit before tax -32 -179 Change in temporary differences 59 25 Permanent differences caused by NOK being tax currency -489 -30 Non-taxable dividend and gain from sale of shares -912 -139 Disallowed interests 506 - Reconciliation of nominal statutory tax rate to effective tax rate NOK million 2024 2023 Expected income tax expense (22%) 7 -39 Tax effect of: Permanent differences caused by NOK being tax currency 0 0 Non-taxable dividend and gain from sale of shares 110 -31 Other permanent differences -9 27 Withholding tax on received dividends 0 3 Allowance for losses carried forward 310 268 Income tax expense/(income) 19 220 Temporary differences as of 31 December NOK million 2024 2023 Change Tax losses and disallowed interests carried forward -3,502 -2,656 -846 Work in progress -71 -23 -48 Other temporary differences -8 2 -10 Total temporary differences -3,581 -2,677 -904 Tax loss carried forward not recognized 3,304 2,518 786 Total temporary differences as basis for recognized tax liability/(asset) -276 -159 -118 Disallowed interest carry forward was MNOK 701 in 2024 MNOK 195 in 2023. The change in deferred tax asset is recognised in tax expense, except for changes which are related to hedged accounting and transaction cost from capital increases which are booked directly to equity. 184 Notes to the parent company financial statements Note 9 Property, plant and equipment Office equipment NOK million 2024 2023 Accumulated cost at 1 January 143 113 Additions 58 33 Foreign currency translation 20 -7 Accumulated cost at 31 December 221 139 Accumulated depreciation at 1 January 58 42 Depreciations for the year 19 13 Foreign currency translation 8 1 Accumulated depreciation at 31 December 84 54 Carrying amount at 31 December 137 86 Estimated useful life (years) 3-10 3-10 Note 10 Investments in subsidiaries, joint ventures and associated companies The table below include material subsidiaries of Scatec ASA. Ownership interest corresponds to voting interest if not otherwise stated. NOK million Subsidiary Registered office Ownership interest Carrying value 2024 Carrying value 2023 SN Power AS Norway 100.00% 456 1,083 Scatec Solar Netherlands BV Netherlands 100.00% 15,161 13,163 Scatec Solar SA (pty) Ltd. Sandton, South-Africa 100.00% 4 3 Scatec Solar SA 163 (Pty) Ltd. South-Africa 100.00% 21 19 Scatec Solar SA 164 (Pty) Ltd. Sandton, South-Africa - - 85 Scatec Solar SA 165 (Pty) Ltd. Sandton, South-Africa - - 114 Gigawatt Global Rwanda Ltd Rwanda - - 8 Scatec Solar Mozambique Limitada Mozambique 0.50% 11 10 Scatec Solar SAS Paris, France 100.00% 70 89 Scatec Solar Jordan Amman, Jordan 100.00% 27 31 Anwar Al Ardh For Solar Energy Generation PSC Amman, Jordan 50.10% 31 98 Ardh Al Amal For Solar Energy Generation PSC Amman, Jordan 50.10% 15 43 Scatec Solar Honduras S.A. Honduras 100.00% 4 3 Produccion de Energia Solar Demas Renovables S.A Honduras 40.00% 79 71 Fotovoltaica Los Prados Honduras 70.00% 94 84 Fotovoltaica Surena Honduras 70.00% 100 133 Generaciones Energeticas S.A Honduras 70.00% 92 126 Energias Solares S.A Honduras 70.00% 61 79 Foto Sol S.A Honduras 70.00% 7 6 Scatec Solar PV1 S.R.O Prague, Czech 100.00% 3 2 Scatec Solar S.R.O Prague, Czech 100.00% 1 1 16,235 15,254 Gigawatt Global Rwanda Ltd. has been sold to Fortis Green Fund I Rwanda Holdings Ltd. and Axian Energy Green Ltd. as announced on 1 August 2024. A list of all material companies in the Scatec Group is listed in Note 26 Consolidated subsidiaries of the Consolidated financial statements. NOK million Associates and joint ventures Office Ownership Carrying value 2024 Carrying value 2023 Release Solar AS Oslo, Norway 68% 858 771 Scatec Solar SA 164 (Pty) Ltd. Sandton, South-Africa 21% 19 - Scatec Solar SA 165 (Pty) Ltd. Sandton, South-Africa 21% 27 - Total 904 771 In 2023, Scatec ASA signed an agreement to raise capital from Climate Fund Managers (“CFM”) to further accelerate its growth ambitions in Release. Release Solar AS is recognized at cost, where Scatec’s carrying value as of December 2023 corresponds to the investments made in the company prior to the entry of CFM. Total equity and net profit in the financial statements of Release Solar AS for 2023 was NOK (4) and 126,808. On 20 November 2024, Scatec ASA closed the last and second phase of the sale of parts of its ownership in the Kalkbult, Linde and Dreunberg solar power plants to Greenstreet 1 Pty. Ltd for a total consideration of NOK 522 million. Post the transactions, Scatec lost control over the entities and the power plants are accounted for as an investment in joint ventures and associated companies at fair value. Note 11 Inventory The decrease from last year is mainly explained by projects reaching construction completion in South Africa and Pakistan. Notes to the parent company financial statements Scatec ASA - Annual Report 2024 185 Project geography NOK million 2024 2023 Asia 2 193 Europe 78 63 West Africa 3 4 South Africa 108 642 North Africa 166 66 South America 6 25 East Africa - 3 Carrying value of inventory at 31 December 363 997 Impairment charges in 2024 were NOK 33 million (37) for development projects in Vietnam (Oman and Brazil). Note 12 Cash and cash equivalents NOK million 2024 2023 Restricted cash 56 50 Free cash 571 122 Total cash and cash equivalents 627 173 Scatec ASA has drawn USD 0 million (70) on the revolving credit facility per 31 December 2024. For more information about external financing and facilities, refer to Note 22 Corporate Financing in the consolidated financial statement of the Group. Note 13 Equity and shareholder information Nok million Issued capital Share premium Other equity Total equity Equity as of 31 December 2023 5 11,761 -1,469 10,297 Profit/(loss) for the period - - -52 -52 Share-based payment - 29 - 29 Change in hedging reserves - - -23 -23 Foreign currency translation - 1,351 -212 1,139 Equity as of 31 December 2024 5 13,141 -1,757 11,389 On 2 November 2023, the Board of Directors announced its decision to change the dividend policy to no dividend. This decision remains unchanged in 2024. The table below show the largest shareholders of Scatec ASA at 31 December 2024. Shareholder Number of shares Ownership EQUINOR ASA 25,776,200 16.22% FOLKETRYGDFONDET 14,748,949 9.28% SCATEC INNOVATION AS 7,000,000 4.40% J.P. Morgan SE 4,511,976 2.84% Citibank Europe plc 3,592,524 2.26% CLEARSTREAM BANKING S.A. 3,416,325 2.15% VERDIPAPIRFONDET DNB NORGE 3,063,144 1.93% Morgan Stanley & Co. Int. Plc. 3,034,830 1.91% JPMorgan Chase Bank, N.A., London 2,695,682 1.70% J.P. Morgan SE 2,600,000 1.64% State Street Bank and Trust Comp 2,535,255 1.60% VPF DNB AM NORSKE AKSJER 2,374,555 1.49% VERDIPAPIRFONDET DNB MILJØINVEST 2,370,367 1.49% The Bank of New York Mellon 2,260,524 1.42% RAIFFEISEN BANK INTERNATIONAL AG 2,144,472 1.35% Citibank, N.A. 2,009,538 1.26% VERDIPAPIRFONDET STOREBRAND NORGE 1,997,926 1.26% DANSKE INVEST NORSKE INSTIT. II. 1,973,383 1.24% The Bank of New York Mellon SA/NV 1,803,921 1.14% State Street Bank and Trust Comp 1,634,511 1.03% Total 20 largest shareholders 91,544,082 57.60% Total other shareholders 67,373,193 42.40% Total shares outstanding 158,917,275 100% 186 Notes to the parent company financial statements The tables below show shares held by Management and Board of Directors at 31 December 2024. Board of Directors Number of shares Ownership Jørgen Kildahl 10,000 0.01% Maria Moræus Hanssen 1) 13,615 0.01% Mette Krogsrud 3,000 0.00% Espen Gundersen 10,000 0.01% Morten Henriksen 10,000 0.01% Pål Kildemo 5,000 0.00% Maria Tallaksen - 0.00% Total at 31 December 2024 51,615 0.03% 1) Held through the controlled company MMH Nysteen Invest AS. Management Number of shares Ownership Terje Pilskog 1) 543,356 0.34% Hans Jakob Hegge 11,152 0.01% Roar Haugland 2) 80,718 0.05% Pål Helsing 7,356 0.00% Ann-Mari Lillejord 11,281 0.01% Siobhan Minnaar 1,152 0.00% Pål Strøm 3) 2,703 0.00% Total at 31 December 2024 657,718 0.41% 1) Held through the controlled company Océmar AS 2) Held through the controlled company Buzz Aldrin AS, whereof 3356 shares held by Roar Haugland directly 3) Member of the Management until 31.08.2024. Refer to Note 4 – Personnel expenses, number of employees and auditor’s fee for information on share options granted to the management. Note 14 Corporate financing For information about Corporate financing refer to Note 22 Financing in the consolidated financial statement of the Group. For information about interest rate swap refer to Note 21 Derivative financial instruments in the consolidated financial statement of the Group. Note 15 Other current liabilities Nok million 2024 2023 Deferred income EPC projects 694 901 Accrued interest expenses 182 164 Vacation allowances, bonus accruals etc. 43 47 Other 36 34 Total current liabilities 955 1,146 Note 16 Guarantees, contractual obligations and contingent liabilities Scatec ASA issue certain guarantees on behalf of the Group. The amounts specified below are total exposure on guarantees issued by Scatec ASA at each balance sheet date based on when the guarantees expire. The guarantees expire haphazardly during the year. NOK million 12/31/2023 12/31/2024 12/31/2025 12/31/2026 Equity commitment 951 419 138 138 Performance guarantees (EPC) 983 306 - - Warranty Guarantees (EPC) 529 429 23 - Bid Bonds 244 233 233 233 SPV Performance / Commitments 664 427 301 273 O&M Performance (3rd party) 27 27 - - Other Payment Guarantees 490 14 14 14 Total 3,888 1,855 709 658 See note 25 Guarantee and commitments in the consolidated financial statement of the Group for more information on the other guarantees issued to third parties. Contractual obligations Scatec ASA has contractual obligations primarily through office lease. NOK million 2025 2026 2027 >2027 Leases (office rental) 15 15 15 36 Total contractual obligations 15 15 15 36 Further, as an EPC contractor Scatec ASA may enter into purchase commitments with suppliers of equipment and sub-EPC services related to the plants under construction. Contingent liabilities Scatec ASA have no material contingent liabilities. Notes to the parent company financial statements Scatec ASA - Annual Report 2024 187 Note 17 Transactions with related parties Related parties Subsidiaries, joint ventures and associates Key management personnel Board of Directors Transactions Management, development and EPC services and financing Loan and payroll Board remuneration Transactions with related parties All related party transactions have been carried out as part of the normal course of business and at arm’s length. The most significant transactions in 2024 and 2023 are: Subsidiaries – EPC services In 2024 Scatec ASA sold EPC services to subsidiaries amounting to NOK 792 million (6 116 million). Subsidiaries – development services During 2024 the company sold development project services amounting to NOK 87 million. Corresponding amount in 2023 was 80 million. Subsidiaries - management service income Scatec ASA has during 2024 charged NOK 60 million (49 million) for corporate services provided to its subsidiaries and associates. Subsidiaries and associates – financing In the course of the ordinary business, inter-company financing is provided from Scatec ASA to its subsidiaries. Long-term financing is interest bearing and priced at arm’s length. Refer to Note 7 for specification of interest income/expenses from/to subsidiaries and Note 10 Investments in subsidiaries, joint ventures and associated companies. Refer to Note 4 – Personnel expenses, number of employees and auditor’s fee for information regarding transactions with key management personnel and board members. Note 18 Subsequent events Adjusting subsequent events No adjusting events have occurred after the balance sheet date. Non-adjusting subsequent event In line with the terms adopted by the Annual General Meeting of Scatec ASA in 2024, the Board of Directors continue the share-based incentive programme for leading employees of the company, following the same principles as previous years. On 3 January 2025, a total of 1,516,378 share options were granted to leading employees. Refer to Note 30 in the consolidated financial statement of the Group for details related to the share-based incentive program. On 4 February 2025, Scatec ASA successfully issued a NOK 1,250 million bond. In conjunction with the bond issue, on 6 February 2025 Scatec bought back EUR 9.1 million and on 20 February 2025 remaining outstanding EUR bond was bought back. On 17 February 2025, Scatec announced that Morten Henriksen has informed the company that he resigns from his position as member of the Board of Directors, effective 17 February 2025. On 28 February 2025, Scatec divested its 51 percent stake in the African hydropower joint venture with Norfund and British International Investment in line with company’s strategy. 188 Responsibility statement Responsibility statement We also confirm, to the best of our knowledge, that presented, that the consolidated financial statements for 2024 has been prepared in accordance with IFRS Accounting Standards as adopted by EU, and that the information gives a true and fair view of the Group’s assets, liabilities, financial position and result for the period. We also confirm, to the best of our knowledge, that presented information provides a fair overview of important events that have occurred during the period and their impact on the financial statements, key risk and uncertainty factors that Scatec is facing during the next accounting period. Oslo, 31 March 2025 The Board of Directors Scatec ASA Alternative Performance Measures Scatec ASA - Annual Report 2024 189 Alternative Performance Measures Scatec discloses alternative performance measures (APMs) in addition to those normally required by IFRS. This is based on the Group’s experience that APMs are frequently used by analysts, investors and other parties for supplemental information. The purpose of APMs is to provide an enhanced insight into the operations, financing and future prospect of the Group. Management also uses these measures internally to drive performance in terms of long-term target setting. APMs are adjusted IFRS measures that are defined, calculated and used in a consistent and transparent manner over the years and across the Group where relevant. Financial APMs should not be considered as a substitute for measures of performance in accordance with IFRS. Disclosures of APMs are subject to established internal control procedures. Definition of alternative performance measures used by the Group for enhanced financial information Cash flow to equity: is a measure that seeks to estimate value creation in terms of the Group’s ability to generate funds for equity investments in new power plant projects and/or for shareholder dividends over time. Management believes that the cash flow to equity measure provides increased understanding of the Group’s ability to create funds from its investments. The measure is defined as EBITDA less net interest expense, normalised loan repayments and normalised income tax payments, plus any proceeds from refinancing. The definition excludes changes in net working capital, investing activities and fair value adjustment of first-time recognition of joint venture investments. Normalised loan repayments are calculated as the annual repayment divided by four quarters for each calendar year. However, loan repayments are normally made bi-annually. Loan repayments will vary from year to year as the payment plan is based on a sculpted annuity. Net interest expense is here defined as interest income less interest expenses, excluding shareholder loan interest expenses, non- recurring fees and accretion expenses on asset retirement obligations. Normalised income tax payment is calculated as operating profit (EBIT) less normalised net interest expense multiplied with the nominal tax rate of the jurisdiction where the profit is taxed. EBITDA: is defined as operating profit adjusted for depreciation, amortisation and impairments. EBITDA margin: is defined as EBITDA divided by total revenues and other income. EBITDA and EBITDA margin are used for providing consistent information of operating performance which is comparable to other companies and frequently used by other stakeholders. Gross profit: is defined as total revenues and other income minus the cost of goods sold (COGS). Gross profit is used to measure project profitability in the D&C segment. Gross margin: Is defined as gross profit divided by total revenues and other income in the D&C segment. Net working capital: includes trade- and other receivables, other current assets, trade- and other payables, income tax payable and other current liabilities. Gross interest-bearing debt: is defined as the Group’s total interest bearing debt obligations except shareholder loan and consists of non- current and current external non-recourse financing, external corporate financing, and other interest-bearing liabilities, irrespective of its maturity as well as bank overdraft. Net interest-bearing debt (NIBD): is defined as gross interest-bearing debt, less cash and cash equivalents. Proportionate net-interest bearing debt: is defined as net interest bearing debt based on Scatec’s economic interest in the subsidiaries holding the net-interest bearing debt. Net corporate debt is defined as corporate financing, less proportionate cash and cash equivalent in non-renewable energy companies. Proportionate Financials The Group’s segment financials are reported on a proportionate basis. The consolidated revenues and profits are mainly generated in the Power Production segment. Activities in Development & Construction segment mainly reflect deliveries to other companies controlled by Scatec, for which revenues and profits are eliminated in the Consolidated Financial Statements. With proportionate financials Scatec reports its share of revenues, expenses, profits and cash flows from all its subsidiaries without eliminations based on Scatec’s economic interest in the subsidiaries. The Group introduced 190 Alternative Performance Measures Proportionate Financials as the Group is of the opinion that this method improves earnings visibility. The key differences between the proportionate and the consolidated IFRS financials are that; ● The consolidated financials are presented on a 100% basis, while the proportionate financials are presented based on Scatec’s ownership percentage/economic interest. ● In the consolidated financials joint venture companies are equity consolidated and are presented with Scatec’s share of the net profit on a single line in the statement of profit or loss. In the proportionate financials the joint venture companies are presented in the same way as other subsidiaries on a gross basis in each account in the statement of profit or loss. ● Internal gains are eliminated in the consolidated financials but are retained in the proportionate financials. These internal gains primarily relate to gross profit on D&C goods and services delivered to project companies which are eliminated as a reduced group value of the power plant compared to the stand-alone book value. Similarly, the consolidated financials have lower power plant depreciation charges than the proportionate financials since the proportionate depreciations are based on power plant values without elimination of internal gain. See Note 2 for further information on the reporting of proportionate financial figures, including reconciliation of the proportionate financials against the consolidated financials. Reconciliation of Alternative Performance Measures (consolidated figures) NOK million 2024 2023 EBITDA Operating profit (EBIT) 4,127 2,625 Depreciation, amortisation and impairment 1,294 942 EBITDA 5,421 3,567 Total revenues and other income 6,574 4,721 EBITDA margin 82% 76% Gross interest-bearing debt Non-recourse project financing 16,929 15,026 Corporate financing 6,729 7,947 Non-recourse project financing - current 1,900 1,931 Corporate financing - current 2,150 1,132 Other non-current interest-bearing liabilities - 247 Other current interest-bearing liabilities 500 - Gross interest-bearing debt associated with disposal group held for sale 355 115 Gross interest-bearing debt 28,563 26,398 Net interest-bearing debt Gross interest-bearing debt 28,563 26,398 Cash and cash equivalents 3,890 3,101 Cash and cash equivalents associated with disposal group held for sale 33 12 Net interest-bearing debt 24,640 23,284 Net working capital Trade and other receivables 487 478 Other current receivables 907 1,151 Trade and other payable -481 -294 Income tax payable -57 -48 Other current liabilities -1,281 -2,060 Non-recourse project financing-current -1,900 -1,931 Corporate financing - current -2,150 -1,132 Other current interest-bearing liabilitie -500 - Net working capital associated with disposal group held for sale 30 -6 Net working capital -4,944 -3,842 Alternative Performance Measures Scatec ASA - Annual Report 2024 191 Break-down of proportionate cash flow to equity FY 2024 NOK million Power Production Development & Construction Corporate Total EBITDA 4,636 184 -125 4,693 Net interest expenses -1,111 1 -743 -1,852 Normalised loan repayments -1,061 - -260 -1,321 Proceeds from refinancing and sale of project assets 944 - - 944 Less proportionate gain on sale of project assets -796 - - -796 Normalised income tax payment -159 -28 200 13 Cash flow to equity 2,452 157 -928 1,680 FY 2023 NOK million Power Production Development & Construction Corporate Total EBITDA 3,334 672 -162 3,845 Net interest expenses -708 22 -593 -1,279 Normalised loan repayments -998 - -145 -1,144 Proceeds from refinancing and sale of project assets 632 - 10 642 Less proportionate gain on sale of project assets -348 - - -348 Normalised income tax payment -151 -138 174 -116 Cash flow to equity 1,759 555 -716 1,600 192 Other definitions Other definitions Backlog Project backlog is defined as projects with a secure off-take agreement assessed to have more than 90% probability of reaching financial close and subsequent realisation. Pipeline The pipeline projects are in different stages of development and maturity, but they are all typically in markets with an established government framework for renewables and for which project finance is available (from commercial banks or multilateral development banks). The project sites and concessions have been secured and negotiations related to power sales and other project implementation agreements are in various stages of completion. Project equity Project equity comprises of equity and shareholder loans in power plant companies. Scatec share of distribution from power plant companies Include dividend on equity injected power plant companies, repayment of shareholder loan and proceeds from refinancing received by recourse group entities. Recourse Group means all entities in the Group, excluding renewable energy companies (each a recourse group company). Free cash at Group level is Scatec’s share of available cash in the recourse group, defined as all entities in the Group with the exception of renewable energy companies, namely power plant companies, and joint venture and associated companies. Definition of project milestones Financial close (FC): The date on which all conditions precedent for drawdown of debt funding has been achieved and equity funding has been subscribed for, including execution of all project agreements. Notice to proceed for commencement of construction of the power plant will normally be given directly thereafter. Projects in Scatec defined as “backlog” are classified as “under construction” upon achievement of financial close. Commercial Operation Date (COD): A scheduled date when certain formal key milestones have been reached, typically including grid compliance, approval of metering systems and technical approval of a plant by independent engineers. Production volumes have reached normalised levels sold at the agreed off-taker agreement price. This milestone is regulated by the off-taker agreement with the power off- taker. In the quarterly report grid connection is used as a synonym to COD. ESG performance indicators Environmental and social assessments (% completed in new projects): Environmental and Social Impact Assessments (ESIAs), due diligence or baseline studies to identify potential environmental and social risks and impacts of our activities (in accordance with the IFC Performance Standards and Equator Principles). GHG emissions avoided (in mill tonnes of CO2): Actual annual production from renewable power projects where Scatec has operational control multiplied by the country and region-specific emissions factor (source IEA). Water withdrawal (in mill litres within water-stressed areas): As per the WRI Aqueduct Water Risk Atlas, the Company reports on water withdrawal by source for projects located within water- stressed areas in South Africa and Jordan. Lost Time Incident Frequency (per mill hours): The number of lost time incidents per million hours worked for all renewable power projects where Scatec has operational control. Hours worked (mill hours – 12 months rolling): The total number of hours worked by employees and contractors for all renewable power projects where Scatec has operational control for the last 12 months. Female leaders (% of female in management positions): The total number of female managers as a percentage of all managers. Corruption incidents: The number of confirmed incidents of corruption from reports received via Scatec’s publicly available whistleblower function (on the Company’s corporate website) managed by an independent third party. Supplier ESG workshops (% of strategic suppliers): The number of ESG workshops with strategic suppliers defined as potential and contracted suppliers of key component categories, including solar modules, batteries, wind turbines, inverters and substructures. Auditor's report Scatec ASA - Annual Report 2024 193 Auditor’s Report 194 Auditor's report Auditor's report Scatec ASA - Annual Report 2024 195 196 Auditor's report Auditor's report Scatec ASA - Annual Report 2024 197 198 Auditor's report Auditor's report Scatec ASA - Annual Report 2024 199 Design and layout: Artbox AS, Photos: Scatec ASA and Ingar Sørensen