Orrön Energy

Earnings Release • Aug 8, 2024

Q Report for the SIX MONTHS ended 30 June 2024 2

Orrön Energy AB (publ) company registration number 556610-8055

Highlights

• Power generation amounted to 456 GWh for the reporting period, representing an increase of more than 20 percent compared to 378 GWh in the same period in the previous year, and was around ten percent below expectations primarily as a result of weak wind speeds in the reporting period.
• Significantly strengthened balance sheet following the divestment of the Leikanger hydropower plant in April 2024 for MEUR 53, with proportionate net debt reduced to MEUR 46 and significant liquidity headroom available through the MEUR 170 revolving credit facility.
• Acquired a 500 MW portfolio of early-stage solar and battery projects from one of the largest landowners in Sweden, and continued to mature projects from the existing 40 GW pipeline towards the ready-to-permit milestone.

Consolidated financials – 6 months

• Cash flows from operating activities amounted to MEUR 1.4 with the sale of the Leikanger hydropower plant impacting cash flows from investing activities positively with MEUR 49.1.

Proportionate financials – 6 months

• Achieved electricity price amounted to EUR 42 per MWh, which, coupled with the sale of the Leikanger hydropower plant, resulted in proportionate EBITDA of MEUR 11.8.

Financial Summary

Orrön Energy owns renewables assets directly and through joint ventures and associated companies and is presenting proportionate financials to show the net ownership and related results of these assets. The purpose of the proportionate reporting is to give an enhanced insight into the Company's operational and financial results.

Expressed in MEUR	1 Jan 2024- 30 Jun 2024	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Consolidated financials	6 months		6 months
Revenue	17.0	4.7	17.3	5.9	28.0
EBITDA	8.0	4.9	2.5	-2.1	-5.1
Operating profit (EBIT)	0.1	1.1	-3.2	-4.8	-17.0
Net result	4.4	7.0	-7.9	-7.9	-7.6
Earnings per share – EUR	0.02	0.02	-0.03	-0.03	-0.03
Earnings per share diluted – EUR	0.02	0.02	-0.03	-0.03	-0.03
Proportionate financials1
Power generation (GWh)	456	182	378	164	765
Average price achieved per MWh – EUR	42	31	61	54	47
Revenue	19.1	5.6	23.0	9.0	36.2
EBITDA	11.8	6.7	8.3	1.6	5.3
Operating profit (EBIT)	2.0	2.0	0.4	-2.2	-11.0

1 Proportionate financials represent Orrön Energy's proportionate ownership (net) of assets and related financial results, including joint ventures. For more details see section Key Financial Data.

All numbers and updates in this report relate to the six-month period ending 30 June 2024, unless otherwise specified. Amounts from the same period in the previous year are presented in brackets. References to "Orrön Energy" or "the Company" pertain to the Group in which Orrön Energy AB (publ) is the Parent Company or to Orrön Energy AB (publ), depending on the context.

In January 2024, the Company's investment in the Leikanger hydropower plant was reclassified from investment in associates and joint ventures to asset held for sale, which is why the proportionate financials do not include any revenues or costs from the operations during the reporting period, see the section Financial Review on page 8. Following the sale in April 2024, a gain on the sale of MEUR 10.9 was recognised in the income statement as other income.

Orrön Energy is an independent, publicly listed (Nasdaq Stockholm: "ORRON") renewable energy company within the Lundin Group of Companies. Orrön Energy's core portfolio consists of high quality, cash flow generating assets in the Nordics, coupled with greenfield growth opportunities in the Nordics, the UK, Germany and France. With significant financial capacity to fund further growth and acquisitions, and backed by a major shareholder, management and Board with a proven track record of investing into, leading and growing highly successful businesses, Orrön Energy is in a unique position to create shareholder value through the energy transition.

Words from the CEO

"The Company has delivered well during the reporting period, with high availability and expenditures in line with our cost guidance, however revenues were lower than expected due to low electricity prices during the quarter. We have significantly strengthened our balance sheet following the sale of the Leikanger hydropower plant in April leading to an increase in liquidity headroom allowing further capacity for acquisitions and growth. Our proportionate power generation amounted to 456 GWh for the reporting period, which was below expectations primarily due to lower-than-average wind speeds, but represents an increase of over 20 percent compared to the same period in the previous year. As a result of the wind conditions in the first half of 2024, we now expect to deliver between 900 and 1,000 GWh of power generation in 2024 depending on wind speeds during the second half of 2024. We continued to deliver on our greenfield growth strategy, adding more projects and capacity to our pipeline, and we are getting closer to having our first large-scale projects reach the ready-to-permit milestone.

Looking at the renewables market, we are seeing an improved acquisition landscape where sellers' and buyers' expectations are starting to align. The sale of the Leikanger hydropower plant and the acquisition of additional shares in the Stugyl wind farm in the SE3 price area during the quarter are perfect examples of how we are taking advantage of favourable market opportunities as they arise, both as a seller and a buyer. We are now seeing more consolidation in the sector with multiple public-to-private transactions at a significant premium to where public companies are trading, highlighting once again the disconnect between the share prices and asset valuations of many of the publicly listed renewables companies. There is also a disconnect between the achieved electricity prices in the second quarter of 2024 and the levels required to break-even on new investments in generation capacity, whether renewable or thermal. I believe that electricity prices will move higher than what we have seen so far this year, otherwise investments in new power generation capacity will start to decline and we will further delay the energy transition.

Advancing our project pipeline

We continue to see good progress in the development of our large-scale greenfield portfolio, where our first projects are close to reaching key milestones. Over the past 18 months, we have focused our efforts on project origination and building a platform of 40 GW of onshore wind, battery and solar projects, and now, as part of our strategy, we are increasing our efforts to mature the existing pipeline in the UK and Germany where I expect our first projects to reach the ready-to-permit stage in the second half of 2024. Large-scale renewable projects continue to remain in demand, and we are seeing continued strong government support and investor appetite for these projects. The recent UK election and the creation of a public renewables company, coupled with targets to triple the installed solar capacity in the UK, further strengthen the support for large-scale renewable projectslike we are developing. In the Nordics we have increased our greenfield pipeline to over 1 GW, following the acquisition of a 500 MW portfolio of early-stage projects from one of the largest private landowners in Sweden. The transaction enables us to start development work on solar and battery projects in the SE2 and SE3 price areas and gives us strategic access to secure additional land.

Strong balance sheet

Our financial results were positively impacted by the sale of the Leikanger hydropower plant in April for MEUR 53, which significantly strengthens our balance sheet and gives us liquidity headroom of more than MEUR 120 to fund acquisitions and growth. Proportionate revenues and other income amounted to MEUR 16.4 for the second quarter, which included the gain from the Leikanger sale. The sale further contributed to a proportionate EBITDA of MEUR 6.7 for the second quarter, and MEUR 11.8 for the reporting period.

Positioned for growth

We delivered a good operational performance in the first half of the year and our balance sheet is further strengthened on the back of the sale of the Leikanger hydropower plant, allowing us to continue to pursue value accretive opportunities. Our project pipeline is continuing to grow and our first projects are expected to reach key milestones in the second half of this year where we will aim to start monetising the first projects. I look forward to updating you on our progress in the coming quarters and I want to thank you all for your continued support, and for joining us on our growth journey."

CEO

Power generation outlook

Orrön Energy's operating portfolio consists of high-quality, cash generating renewable energy assets in the Nordics. The proportionate power generation for the reporting period amounted to 456 GWh, which represents an increase of more than 20 percent compared to the same period in the previous year but was around ten percent below expectations primarily due to weak winds in the reporting period. The Company expects its full-year proportionate power generation for 2024 to be between 900 and 1,000 GWh, given the wind speedsin the first half of 2024 and considering the potential variability of weather conditions during the second half of 2024.

Expenditure Guidance

The Company delivered in line with expenditure guidance for the reporting period. The Company maintains its full-year 2024 guidance for operating expenses, G&A expenses and capital expenditure. The Company has reduced its guidance for legal costs related to the defence of the Company and its former representatives in the Sudan legal case from MEUR 8 to MEUR 7, due to lower ongoing costs than expected.

Expenditure Guidance1 MEUR	Guidance 2024 12 months	Actuals 2024 6 months
Operating expenses	15–17	8
G&A expenses2	9	5
Sudan legal costs3	7	4
Capital expenditure	14	4

1 Guidance is presented based on proportionate (net) ownership in assets and related financial results.

2Excludes non-cash items and costs in relation to the Sudan legal case.

3Legal costs in relation to the defence of the Company and its former representatives in the Sudan legal case. These costs are included in the G&A expenses line item in the consolidated income statement. More information about the case can be found in the section Contingent liabilities.

Operational assets

The Company's proportionate power generation for the reporting period amounted to 456 GWh. The Company's proportionate power generation for the second quarter amounted to 182 GWh, which was below expectation mainly due to lower than-average wind speeds.

Realised electricity price amounted to EUR 42 per MWh for the reporting period, and EUR 31 per MWh for the second quarter. Out of the realised electricity price, guarantees of origin and hedging impact accounted for EUR 2 per MWh for the reporting period and EUR 1 per MWh for the second quarter. The Company is awarded and sells guarantees of origin for all of its power generation, certifying that the electricity has been produced from renewable energy sources. The weighted average regional electricity price for the Company's power generation during the reporting period amounted to EUR 53 per MWh, and the Nordic system price averaged EUR 47 per MWh. The variance to the Company's realised electricity price is explained by 'capture price discounts', which occur in any given period where a majority of power is generated during periods of low prices relative to the average spot price for the same period.

Proportionate operating expenses amounted to MEUR 8 for the reporting period, which was in line with guidance.

Sweden

The Company has a diversified portfolio consisting of ownership in 200 operational wind turbines in more than 50 sites across Sweden, which have an estimated long-term proportionate annual power generation of around 800 GWh and a total net installed capacity of around 300 MW. A majority of the assets are situated in the SE3 and SE4 price areas. Availability warranties are in place for a majority of the Company's assets, which guarantees the availability of the turbines and gives the Company protection against downtime and outages.

The largest producing asset in the Swedish portfolio is the Karskruv wind farm, which started commercial operations at the end of November 2023. Karskruv has an estimated long-term proportionate annual power generation of 290 GWh, which is generated from 20 Vestas turbines with a total installed capacity of 86 MW. The project has an availability warranty in place, which guarantees the availability of the turbines through their operational life of approximately 30 years and gives the Company protection against downtime and outages. The wind farm is situated in the SE4 price area.

Another large production hub for the Company is situated at Näsudden on Gotland, which is a pioneering region for wind power in Sweden and where the Company has its operational office. The production hub consists of ownership in five wind farms, with a combined estimated long-term proportionate annual power generation of around 170 GWh. The Näsudden hub is situated in the SE3 price area.

Power generation from the Swedish portfolio was slightly below expectations during the reporting period, due to lower-thanaverage wind speeds.

Finland

The Company owns 50 percent of the Metsälamminkangas (MLK) wind farm and 100 percent of a 9 GWh wind farm located in Hanko in Finland. MLK has an estimated long-term proportionate annual power generation of around 400 GWh, which is generated from 24 GE turbines with a total installed capacity of 132 MW. The wind farm has an estimated operational life of around 30 years and has been in operation since the end of March 2022. An availability warranty is in place, which guarantees the availability of the turbines through their operational life and gives the Company protection against downtime and outages.

In February 2024, a fire occurred at one wind turbine at MLK, which was safely managed with no personal injury or material environmental impact. The root cause has been concluded to be a faulty electrical connection linked to the de-icing system in the affected blade. Inspections and preventative actions have been taken across all turbines in the wind farm, where all remaining turbines are fully operational. The fire damaged turbine will be replaced and associated costs and lost production are covered under warranties from the turbine supplier.

Power generation from MLK was below expectation during the reporting period, primarily due to weak wind speeds, but also impacted by lower-than-expected availability, partly related to the fire. Production losses due to availability are covered through the availability warranty from the turbine supplier.

Project Pipeline

The Company has a strategy to build a large scale pipeline of development projects, which will be matured to key milestones and aims to monetise these large scale projects prior to the requirement for any material capital investment. Given the strength of the balance sheet of the Company, the timing of project sales will depend on market conditions over the lifecycle of the projects, where the Company aims to maximise the value of the projects and sell down at opportune points in the cycle. During the reporting period, the Company has taken further steps to develop its growth platforms in the Nordics, the UK, Germany and France, and continued to mature a long-term pipeline of projects. This includes laying the foundation for greenfield project developments in onshore wind, solar and battery storage solutions and maturing growth opportunities in the operational portfolio. The Company has established a presence in all stages of the renewable lifecycle and will continue to advance its project pipeline.

Greenfield projects

The Company is maturing a 40 GW portfolio of early-stage greenfield projects in onshore wind, solar and battery projects in the Nordics, the UK, Germany and France. These countries have high ambitions to increase renewable energy generation and represent attractive markets for developers with strong regulatory support, low political and operational risk and a robust investor universe. The Company's greenfield business is led by experienced development teams, with a proven track-record in greenfield project origination and development in these markets. Final project realisation will be dependent on a number of factors, such as permitting, fulfilment of project milestones and commercial viability. The Company will seek to monetise projects throughout the value chain, depending on market conditions at the time. For the largest projects, the strategy will be to divest prior to incurring significant development and construction costs.

Nordics

In the Nordics, the Company is progressing a range of stand-alone and co-located project opportunities with an estimated total capacity of around 1 GW, ranging from early-stage projects in the screening phase, through to projects with construction permits in place moving towards investment decisions. This allows the Company to organically grow its portfolio, optimise power generation and crystalise further value from its operational assets, which includes projects aimed at extending asset lifetimes, re-powering and consolidation of ownership shares. The co-located project opportunities enable the Company to optimise the grid utilisation, provide ancillary services and enable new revenue streams, through adding complementary technology of solar and battery storage solutions to existing wind power facilities.

In Sweden, the Company has a portfolio of greenfield project opportunities, ranging from early-stage to permitted projects. During the first half of 2024, the Company secured 17 MW of building permits for battery projects, bringing the total permits granted to 37 MW at the end of the reporting period. Construction of the Company's first 1 MW stand-alone battery project in Vilhelmina is progressing well and is expected to be operational in the second half of 2024.

In July 2024, the Company acquired a 500 MW greenfield portfolio of early-stage solar and battery projects from one of the largest private landowners in Sweden, with 800 hectares of land secured for developments in the SE2 and SE3 price areas. Prestudies have been conducted, and the agreements include exclusive rights for the Company to add further projects and land. The Company intends to initiate feasibility studies and further define the projects within the coming year.

In Finland, the Company is maturing a greenfield portfolio consisting of wind and battery projects. The greenfield projects are at an early-stage, and the Company aims to reach the ready-to-build stage for the first project in 2027. Land has been secured for all planned wind turbine and battery locations. The permitting process for the largest project has been initiated, and the permitting process for the second project is expected to be initiated in 2024.

The Company is setting up itslargest wind farmsto provide ancillary services to the grid. MLK has been providing ancillary services to the market since mid-July 2024. Work is progressing to implement provision of ancillary services on Karskruv, which are expected to be active before the end of 2024.

UK, Germany and France

Since establishing the greenfield business in the UK, Germany and France in 2023, the Company has successfully created a platform for growth, established experienced development teams and originated a large-scale pipeline of greenfield solar and battery projects. While the initial focus has been on developing this platform and originating the pipeline, the Company will continue to deliver on its strategy and move to the next phase with increased focus on maturing the existing pipeline in the UK and Germany. The Company expects the first large-scale projects to reach the ready-to-permit stage during the second half of 2024. As part of the Company's strategy, divestment opportunities will be evaluated once projects have reached the ready-topermit stage.

In the UK, the Company has secured a portfolio of grid connections with a capacity of 24 GW for solar projects and 12 GW for colocated battery projects, with expected grid energisation dates between 2030 and 2040. The grid connections are located in favourable areas for development, based on extensive screening of key criteria such as irradiation, grid capacity, land availability and constraint mapping. In addition, the Company has secured multiple land exclusivity agreements in 2024 and is in negotiations to secure land rights for other projects. The UK has a high permitting success rate for projects and, in addition, large-scale projects benefit from increased regulatory support as nationally significant infrastructure projects (NSIP). The new government in the UK has expressed strong support for solar developments, with a target to triple the installed solar capacity by 2030.

In Germany, the Company has initiated land acquisition work in targeted regions, which have been chosen based on a range of key criteria, such as irradiation, grid capacity and land availability. The Company has successfully originated a pipeline of around 3 GW of solar and battery projects and is actively working to mature the first projects.

In France, the Company has carried out early-stage land availability studies as well as high level grid surveys. The Company has also identified key areas based on irradiation, land availability and grid capacity and is working to secure land for its first projects.

Transactions

Orrön Energy's strategy is to invest in renewable energy projects and pursue value accretive opportunities in the energy transition to grow and optimise its portfolio.

In January 2024, the Company entered into an agreement to acquire a greenfield portfolio consisting of wind and battery development projects in Finland, with a total installed capacity of around 200 MW.

In April 2024, the Company entered into an agreement to sell its 50 percent interest in the company owning the Leikanger hydropower plant for an enterprise value of MNOK 613, approximately MEUR 53, to the existing partner Sognekraft. The transaction completed in early May 2024. In January 2024, the investment in the company owning the Leikanger hydropower plant was reclassified from investment in associates and joint ventures to asset held for sale and the consolidated and proportionate financials have been presented without any contribution from this asset. The result generated before the reclassification in January was not material.

In June and July 2024, the Company entered into agreements to acquire an additional 6 percent ownership in the Stugyl wind farm in the SE3 price area, which takes the Company's interest to 64 percent. The acquisitions are expected to add around 5 GWh of long-term proportionate annual power generation to the Company's portfolio.

Transactions after reporting period end

In July 2024, the Company entered into an agreement with one of the largest landowners in Sweden to acquire a portfolio consisting of early-stage solar and battery projects in the SE2 and SE3 price area, with a total installed capacity of around 500 MW.

Sustainability

Sustainability is at the core of Orrön Energy's business as a pure play renewables company and constitutes an important cornerstone of the Company's long-term shareholder value creation. The Company owns and operates renewable assets in a safe and responsible manner, with a long-term horizon for the benefit of all its stakeholders.

Climate change is one of the biggest challenges of our time, and the world needs to transition to energy sources with lower greenhouse gas emissions, such as renewable energy, to allow to limit global warming in line with the Paris Agreement. The energy transition is backed by firm targets set by the EU, which will require a significant increase of renewable energy generation, with wind and solar power being highlighted as crucial to achieve these objectives. Orrön Energy is directly contributing to the achievement of these goals by investing in and increasing the supply of renewable energy in its countries of operation. The demand for clean energy is set to increase, and Orrön Energy is committed to continue investing in renewable power generation and technologies to drive the energy transition, for a clean and sustainable energy future.

Orrön Energy's approach to sustainability is aligned with the UN Sustainable Development Goals, in particular Goal 7 on Affordable and Clean Energy, Goal 13 on Climate Action and Goal 15 on Life on Land, which underpins the way in which the Company conducts its business. This ensures that the business delivers lasting value for all its stakeholders. The Company also actively supports the UN Global Compact's 10 Principles on human rights, labour standards, environment and anti-corruption.

Orrön Energy is developing biodiversity enhancement projects in areas around its renewable assets, such as targeted projects aiming to increase biodiversity, planting of wildflowers to stimulate the growth of bee populations, wildlife monitoring systems and grazing projects in collaboration with local farming communities. In addition, the Company considers strong community engagement as essential to its business success and is collaborating with several local organisations to support and contribute to the local communities around its assets. Environmental aspects and community engagements are key considerations throughout the assets' operational life. The Company was awarded with Prime Status by ISS ESG in 2023, one the world's largest ESG rating agencies.

Health and safety of people and the environment are core priorities for the business and the Company has procedures in place to identify and mitigate risks, including investigation and reporting of incidents and accidents. During the first quarter, a fire occurred at one wind turbine, which was safely managed with no personal injury or material environmental impact. There were no recordable health and safety incidents during the reporting period.

Financial Review

Changes in the Group

In April 2024, the Company entered into an agreement to sell its 50 percent interest in the company owning the Leikanger hydropower plant for an enterprise value of MNOK 613, approximately MEUR 53, to the existing partner Sognekraft. The transaction completed in early May 2024 and generated an accounting profit for the Group of MEUR 10.9, which has been recognised as other income in the income statement.

In January 2024, the investment in the company owning the Leikanger hydropower plant was reclassified from investment in associates and joint ventures to asset held for sale and the consolidated and proportionate financials have been presented without any contribution from this asset. The result generated before the reclassification in January was not material.

Revenue and results – Consolidated financials

EBITDA for the reporting period amounted to MEUR 8.0 compared to MEUR 2.5 in the same period the previous year and included an accounting profit of MEUR 10.9 from the sale of the Leikanger hydropower plant, which is included in other income.

Revenue and other income

Revenue for the reporting period amounted to MEUR 17.0 (MEUR 17.3) and was impacted by lower electricity prices than the same period in the previous year, partly offset by increased power generation following the takeover of the Karskruv wind farm for commercial operations at the end of November 2023. The sale of the Leikanger hydropower plant generated an accounting profit for the Group of MEUR 10.9, which has been recognised as other income

As a result of the reclassification of the Company's 50 percent interest in the Leikanger hydropower plant, no share in result from associates and joint ventures has been recognised for this asset during the reporting period. The result generated before the reclassification in January was not material.

Operating expenses

Operating expenses amounted to MEUR 7.2 (MEUR 6.9) for the reporting period and were mainly impacted by the takeover of the Karskruv wind farm for commercial operations at the end of November 2023.

General and administration expenses

General and administration expenses amounted to MEUR 10.5 (MEUR 8.8) for the reporting period, including MEUR 4.0 (MEUR 3.2) for legal and other fees incurred for the defence of the Company and its former representatives in the Sudan legal case. A non-cash expense of MEUR 1.6 (MEUR 1.2) relating to long-term incentive plans is part of the overall general and administration expenses recorded during the reporting period.

Share in result from associates and joint ventures

Share in result from associates and joint ventures amounted to MEUR -2.2 (MEUR 0.5) for the reporting period and is detailed in note 2. Orrön Energy's portion of the results in the 50 percent owned joint venture MLK wind farm amounted to MEUR -2.1 (MEUR 0.1) and the share in result from other associates and joint ventures amounted to MEUR -0.1 (MEUR 0.0).

As a result of the reclassification of the Company's 50 percent interest in the Leikanger hydropower plant from investment in associates and joint ventures to asset held for sale in January 2024, no share in result from associates and joint ventures has been recognised for this asset during the reporting period. The result generated before the reclassification in January was not material.

Associates and joint ventures are consolidated through the equity method and the net result of these entities is therefore recognised as a single line item in the income statement.

Net financial items

Finance income amounted to MEUR 3.0 (MEUR 3.2) for the reporting period and is detailed in note 3. Interest income of MEUR 3.0 (MEUR 2.6) related to loans to joint ventures. Other finance income of MEUR 0.6 was recognised in the same period the previous year and reflected a financial gain representing the variation in market value of historical hedges entered into by acquired companies.

Finance costs amounted to 4.2 (MEUR 7.9) for the reporting period and are detailed in Note 4. The net foreign exchange loss amounted to MEUR 0.7 (MEUR 5.7). Foreign exchange movements occur on the settlement of transactions denominated in foreign currencies and the revaluation of working capital and loan balances to the prevailing exchange rate at the balance sheet date where those monetary assets and liabilities are held in currencies other than the functional currencies of the Group's entities. Orrön Energy is exposed to exchange rate fluctuations relating to the relationship between Euro and other currencies. The net foreign exchange loss related mainly to the revaluation of external loans and intercompany loan balances, denominated in other currencies than the functional currency of the Group company providing the financing. Interest expenses amounted to MEUR 2.9 (MEUR 1.8) and related to the Group's external loans. Other finance costs amounted to MEUR 0.6 (MEUR 0.4) and represented mainly fees and other costs in relation to the Company's revolving credit facility, with the comparative period also impacted by fees and other costs in connection with acquisitions made.

Income tax

Income tax representing a net income amounted to MEUR 5.5 (MEUR –) for the reporting period and is detailed in Note 5. This amount is mainly comprised of a deferred tax income relating to a reduction of accelerated depreciation allowances booked in Sweden.

Financial Review

Revenue and results - Proportionate financials

In addition to the consolidated financial reporting in line with IFRS, the Group provides proportionate financial reporting, which forms part of the alternative performance measures that the Group presents. Proportionate reporting is aligned with the Group's internal management reporting, analysis and decision making.

Proportionate financials represent Orrön Energy's proportionate share of all the entities in which the Group holds an ownership. This is different to the consolidated financial reporting under IFRS, where the results from entities in which the Group holds an ownership of 50 percent or less are not fully consolidated but instead reported on one line, as share in result from associates and joint ventures. All entities in which the Group holds an ownership of more than 50 percent are fully consolidated in the financial reporting presented under IFRS.

Proportionate financials MEUR	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Power generation (GWh)	456	182	378	164	765
Average price achieved per MWh – EUR	42	31	61	54	47
Revenue	19.1	5.6	23.0	9.0	36.2
Other income	11.2	10.8	0.6	0.5	0.8
Operating expenses	-8.0	-4.0	-6.5	-3.4	-13.5
G&A expenses1	-10.5	-5.7	-8.8	-4.5	-18.2
EBITDA	11.8	6.7	8.3	1.6	5.3
Depreciation	-9.8	-4.7	-7.9	-3.8	-16.3

Operating profit/loss (EBIT) 2.0 2.0 0.4 -2.2 -11.0 1 Includes legal and other fees of MEUR 4.0 (MEUR 3.2) incurred for the defence of the Company and its former representatives in the Sudan legal case and a non-cash expense for long-term incentive plans of MEUR 1.6 (MEUR 1.2) for the reporting period.

Proportionate EBITDA amounted to MEUR 11.8 (MEUR 8.3) for the reporting period and was impacted by an accounting profit of MEUR 10.9 made on the sale of the Leikanger hydropower plant, which is included in other income. The reporting period was characterised by lower electricity prices compared to the same period the previous year, partly offset by increased power generation following the takeover of the Karskruv wind farm for commercial operations at the end of November 2023.

Proportionate revenues amounted to MEUR 19.1 (MEUR 23.0) for the reporting period and were mainly impacted by lower electricity prices compared to the same period in the previous year, partly offset by increased power generation following the takeover of the Karskruv wind farm for commercial operations at the end of November 2023. The Leikanger hydropower plant contributed with MEUR 3.1 to the Group's revenues in the comparative period and as a result of the reclassification of the Company's 50 percent interest in the Leikanger hydropower plant from investment in associates and joint ventures to asset held for sale in January 2024, no share in the result from this asset has been recognised for the reporting period. The result generated during January, before the reclassification, was not material.

Proportionate other income amounted to MEUR 11.2 (MEUR 0.6) and included a profit of MEUR 10.9 made on the sale of the Leikanger hydropower plant in May 2024.

Proportionate operating expenses amounted to MEUR 8.0 (MEUR 6.5) for the reporting period with the increase compared to the same period the previous year mainly explained by the takeover of the Karskruv wind farm for commercial operations at the end of November 2023.

The Group operates in various countries and fiscal regimes where corporate income tax rates are different from the regulations in Sweden. Corporate income tax rates for the Group vary between 14.7 and 20.6 percent for the majority of the business in 2024.

Cash flow and investments – Consolidated financials

Cash flow from operating activities

Net cash flows from operating activities amounted to MEUR 1.4 (MEUR 13.9) for the reporting period. Cash flows from operating activities during the same period in the previous year included dividend payments from joint ventures of MEUR 12.9.

Cash flow from investing activities

Cash flows from investing activities amounted to MEUR 44.1 (MEUR -44.8) and were impacted by the proceeds from the sale of the Leikanger hydropower plant of MEUR 28.9 and the repayment of a loan provided to Leikanger Kraft of MEUR 20.2 which was reimbursed in connection with the sale. An amount of MEUR -4.3 (MEUR -40.9) related to investments in the renewable energy business. The same period in the previous year was impacted by MEUR -3.9 from the acquisition of the remaining 3.5 percent of the shares in Orrön Energy Sweden AB and acquisitions of additional ownership in companies and wind farms in Sweden.

Cash flow from financing activities

Cash flows from financing activities amounted to MEUR -50.7 (MEUR 30.6) for the reporting period and represented a repayment of the credit facility of MEUR -50.7 compared to a net drawdown of MEUR 30.6 during the same period in the previous year.

Financial Review

Financing and liquidity – Consolidated financials

In January 2024, the Company exercised a portion of the accordion option and increased its three-year revolving credit facility entered into in 2023, from MEUR 150 to MEUR 190, adding further capacity to fund future growth. The commercial terms of the facility are unchanged and include a floating interest rate margin of 1.8 percent above the reference interest rate for the borrowed currency. Following the sale of the Company's interest in the Leikanger hydropower plant, which completed in early May 2024, the revolving credit facility was reduced from MEUR 190 to MEUR 170.

Interest-bearing loans and borrowings amounted to MEUR 62.8 compared to MEUR 114.7 at year-end 2023 and related mainly to an outstanding loan of MEUR 60.4 (MEUR 112.0), which has been drawn under the Group's revolving credit facility. Interestbearing loans and borrowings also included a long-term loan of MEUR 2.4 (MEUR 2.7) taken up by a subsidiary.

The Company's net debt amounted to MEUR 47.4 compared to MEUR 93.7 at year-end 2023.

Other current financial liabilities amounted to MEUR 0.6 compared to MEUR 0.8 at year-end 2023 and related to a short-term loan, with less than twelve months maturity, which is held by a subsidiary.

Cash and cash equivalents amounted to MEUR 16.0 compared to MEUR 21.8 at year-end 2023.

Subsequent events

There has been no material event subsequent to the balance sheet date.

Other information

Parent Company

The business of the Parent Company is to invest in and manage operations within the renewable energy sector as of 1 July 2022.

The Parent Company reported a net result of MSEK 41.6 (MSEK 98.0) for the reporting period, which was impacted by general and administration expenses and a dividend received from a group company of MSEK 125.3 (MSEK 127.9).

General and administration expenses amounted to MSEK 100.9 (MSEK 100.4), out of which MSEK 46.0 (MSEK 36.7) related to legal fees and other costs incurred for the defence of the Company and its former representatives in the Sudan legal case.

Contingent Liabilities

In November 2021, the Swedish Prosecution Authority brought criminal charges against former representatives of the Company in relation to past operations in Sudan from 1999 to 2003. The charges also included claims against the Company for a corporate fine of MSEK 3.0 and forfeiture of economic benefits of MSEK 2,381.3, which according to the Swedish Prosecution Authority represents the value of the gain of MSEK 720.1 that the Company made on the sale of an asset in 2003. The Company refutes that there are any grounds for allegations of wrongdoing by any of its former representatives and sees no circumstance in which a corporate fine or forfeiture could become payable. The claim for forfeiture of economic benefits was increased from MSEK 1,391.8 by the Swedish Prosecution Authority in August 2023. This latest increase to the claimed forfeiture amount means that the Prosecutor has presented three completely different amounts, based on three different methodologies, over the past five years, raising serious questions about the substance and credibility of the Prosecutor's claim. It is obvious that the methodology used by the Prosecutor to arrive at the claimed forfeiture amount is fundamentally flawed, leading to an unreasonable forfeiture claim which has no basis in law and is highly speculative. Any potential corporate fine or forfeiture of economic benefits would only be imposed after an adverse final conclusion of the case against former representatives of the Company. The trial at the Stockholm District Court started in September 2023 and is expected to last until February 2026. The Company considers this to be a contingent liability and therefore no provision has been recognised.

As part of the IPC spin-off that was completed on 24 April 2017, the Company had indemnified IPC for certain legal proceedings related to the period before the spin-off concerning Indonesian land and building tax assessed for the fiscal years 2012 and 2013. The legal proceedings have been concluded for the fiscal year 2012 and did not lead to any liability for IPC, nor the Company. In early 2024, the Company acquired the entity subject to the claim for 2013 from IPC and the indemnity to IPC was extinguished. The Company has not recognised any provision in relation hereto as it does not believe it is probable that the claim will lead to any liability for the Company.

A portion of the Company's past operations was held through a Canadian holding structure when acquired back in 2006. The tax filings in Canada since 2006 in relation to both corporate income tax and withholding tax are under review by the Canadian Tax Office. All tax has been paid in relation to these tax filings and no provision has been recognised.

Share Data

Share capital

At the balance sheet date, the Company's issued share capital amounted to SEK 3,478,713 represented by 285,924,614 shares with a quota value of SEK 0.01 each (rounded off).

During the reporting period, the Company received 19,427 of its own shares as a result of a legacy corporate transaction. The acquisition value of these shares was nil. A resolution to reduce the share capital by SEK 236.36 through retirement of these shares was approved by the Extraordinary General Meeting (EGM) held on 7 August 2024. The purpose of the reduction of the share capital was allocation to unrestricted equity. The EGM further resolved to increase the share capital by SEK 236.36. No new shares are to be issued in connection with the increase of the share capital. The amount by which the share capital is to be increased shall be transferred to the share capital from unrestricted equity.

Remuneration

The Policy on Remuneration and details of long-term incentive plans ("LTIP") are provided on www.orron.com.

Employee LTIPs

A long-term share-related incentive plan in the form of a share option plan for members of Group management and other employees of the Company was approved by the 2022 EGM ("Employee LTIP 2022"), with the aim of aligning the interests of the members of Group management and other employees with the interests of the shareholders, as well as to provide market appropriate reward for a new business focused on growth, reflecting continuity, commitment and share price appreciation. The Board believes that the Employee LTIP 2022 provides the Company with a crucial component to a competitive total compensation package to attract and retain employees who are critical to the Company's future.

Similar plans were approved by the 2023 AGM ("Employee LTIP 2023") and the 2024 AGM ("Employee LTIP 2024"). In order to secure the Company's obligations under the Employee LTIPs 2022, 2023 and 2024, the Company has issued 20,160,000 warrants in total under series 2022:2, 2024:1 and 2024:2 as resolved by the 2022 and 2024 AGMs.

The Company maintains an option to deliver shares to participants under an equity swap arrangement concluded with a third party, whereby the third party in its own name shall be entitled to acquire and transfer shares (including to the participants), as resolved by the 2023 AGM.

Other information

The Employee LTIPs 2022 and 2023 are described in detail in Note 23 on page 60 of the 2023 Annual and Sustainability Report and on pages 3 and 4 of the 2023 Remuneration Report. Information regarding the Employee LTIP 2024 can be found in the 2024 AGM materials available on www.orron.com.

Board LTIP

The 2022 EGM resolved to approve a one-off long-term share-related incentive plan for members of the Board ("Board LTIP 2022") in the form of a share option plan.

The Company has secured its obligations under the Board LTIP 2022 by entering into an equity swap arrangement with a third party, whereby the third party in its own name shall be entitled to acquire and transfer shares (including to the participants) in accordance with the plan.

The Board LTIP is described in detail in Note 23 on page 60 of the 2023 Annual and Sustainability Report and on page 6 of the 2023 Remuneration Report.

Exchange rates

For the preparation of the financial statements, the following currency exchange rates have been used.

		30 Jun 2024		30 Jun 2023		31 Dec 2023
	Average	Period end	Average	Period end	Average	Period end
1 EUR equals SEK	11.3889	11.3595	11.3314	11.8055	11.4728	11.0960
1 EUR equals NOK	11.4925	11.3965	11.3204	11.7040	11.4244	11.2405
1 EUR equals GBP	0.8546	0.8464	0.8766	0.8583	0.8699	0.8691
1 EUR equals CHF	0.9616	0.9634	0.9856	0.9788	0.9717	0.9260

Board Assurance and Auditor's Review report

The Board of Directors and the CEO certify that the financial report for the six months ended 30 June 2024 gives a fair view of the performance of the business, position and profit or loss of the Company and the Group, and describes the principal risks and uncertainties that the Company and the companies in the Group face.

Stockholm, 8 August 2024

Grace Reksten Skaugen Chair

Peggy Bruzelius Board Member

William Lundin Board Member

Mike Nicholson Board Member

Jakob Thomasen Board Member

Daniel Fitzgerald CEO

Auditor's Review report

Orrön Energy AB (publ), corporate identity number 556610-8055 To the Board of Directors of Orrön Energy AB (publ)

Introduction

We have reviewed the condensed interim report for Orrön Energy AB (publ) as at June 30, 2024 and for the six months period then ended. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material aspects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.

Stockholm, 8 August 2024 Ernst & Young AB

Anders Kriström Authorized Public Accountant Lead Partner

Consolidated Income Statement

		1 Jan 2024- 30 Jun 2024	1 Apr 2024- 30 Jun 2024	1 Jan 2023- 30 Jun 2023	1 Apr 2023- 30 Jun 2023	1 Jan 2023- 31 Dec 2023
MEUR	Note	6 months	3 months	6 months	3 months	12 months
Revenue		17.0	4.7	17.3	5.9	28.0
Other income		10.9	10.8	0.4	0.2	0.4
Operating expenses		-7.2	-3.3	-6.9	-3.4	-12.6
General and administration expenses		-10.5	-5.7	-8.8	-4.5	-18.2
Depreciation		-7.9	-3.8	-5.7	-2.7	-11.9
Share in result of associates and joint ventures	2	-2.2	-1.6	0.5	-0.3	-2.7
Operating profit/loss		0.1	1.1	-3.2	-4.8	-17.0
Finance income	3	3.0	1.4	3.2	1.3	6.3
Finance costs	4	-4.2	-0.8	-7.9	-4.3	-8.4
Net financial items		-1.2	0.6	-4.7	-3.0	-2.1
Profit/loss before income tax		-1.1	1.7	-7.9	-7.8	-19.1
Income tax	5	5.5	5.3	-0.0	-0.1	11.5
Net result		4.4	7.0	-7.9	-7.9	-7.6
Attributable to:
Shareholders of the Parent Company		4.3	6.7	-8.3	-7.7	-8.0
Non-controlling interest		0.1	0.3	0.4	-0.2	0.4
		4.4	7.0	-7.9	-7.9	-7.6
Earnings per share – EUR1		0.02	0.02	-0.03	-0.03	-0.03
Earnings per share diluted – EUR1		0.02	0.02	-0.03	-0.03	-0.03

1 Based on net result attributable to shareholders of the Parent Company.

Consolidated Statement of Comprehensive Income

MEUR	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Net result	4.4	7.0	-7.9	-7.9	-7.6
Items that may be reclassified to profit or loss: Exchange differences foreign operations	-2.3	4.6	-5.3	1.1	4.5
Items that will not be reclassified to profit or loss:
Changes in the fair value of equity investments	0.4	0.4	–	–	–
Other comprehensive income, net of tax	-1.9	5.0	-5.3	1.1	4.5
Total comprehensive income	2.5	12.0	-13.2	-6.8	-3.1
Attributable to:
Shareholders of the Parent Company	2.4	11.7	-13.6	-6.6	-3.6
Non-controlling interest	0.1	0.3	0.4	-0.2	0.5
	2.5	12.0	-13.2	-6.8	-3.1

Consolidated Balance Sheet

MEUR	Note	30 June 2024	31 December 2023
ASSETS
Non-current assets
Property, plant and equipment		284.3	295.2
Investment in associates and joint ventures		15.1	34.0
Deferred tax assets		38.4	39.3
Other non-current financial assets	8	74.9	95.5
		412.7	464.0
Current assets
Other current assets		4.1	7.5
Trade receivables	8	0.7	1.7
Other current financial assets	8	10.5	5.7
Cash and cash equivalents	8	16.0	21.8
		31.3	36.7
TOTAL ASSETS		444.0	500.7
EQUITY AND LIABILITIES
Equity Shareholders' equity		357.6	353.4
Non-current liabilities
Interest-bearing loans and borrowings	8	62.8	114.7
Deferred tax liability		9.8	15.9
Provisions		3.1	3.0
		75.7	133.6
Current liabilities
Trade and other payables	8	10.1	12.7
Current tax liabilities		0.0	0.2
Other current financial liabilities	8	0.6	0.8
		10.7	13.7
TOTAL LIABILITIES		86.4	147.3
TOTAL EQUITY AND LIABILITIES		444.0	500.7

Consolidated Statement of Cash Flows

	Note	1 Jan 2024- 30 Jun 2024	1 Apr 2024- 30 Jun 2024	1 Jan 2023- 30 Jun 2023	1 Apr 2023- 30 Jun 2023	1 Jan 2023- 31 Dec 2023
MEUR		6 months	3 months	6 months	3 months	12 months
Cash flows from operating activities
Net result		4.4	7.0	-7.9	-7.9	-7.6
Adjustments for items not included in the cash flow	9	-3.9	-10.8	10.8	6.2	8.1
Interest received		3.7	2.5	2.5	1.3	4.7
Interest paid		-4.2	-2.6	-2.0	-1.3	-3.7
Income taxes paid		–	–	–	–	-0.2
Distributions received		0.2	0.2	12.9	3.0	13.1
Distributions paid to non-controlling interest		-0.2	-0.2	-0.3	-0.3	-0.3
Changes in working capital		1.4	2.3	-2.1	-3.7	1.4
Total cash flows from operating activities		1.4	-1.6	13.9	-2.7	15.5
Cash flows from investing activities
Investment in renewable energy business1		-4.3	-2.4	-40.9	-27.9	-72.3
Acquisition of subsidiary net of cash		-0.5	-0.5	-3.9	-0.1	-6.7
Investment in other fixed assets		-0.6	-0.6	–	–	-0.1
Proceeds from equity investments		0.4	0.4	–	–	–
Proceeds from sale of joint venture		28.9	28.9	–	–	–
Repayment of loan from joint venture		20.2	20.2	–	–	–
Total cash flows from investing activities		44.1	46.0	-44.8	-28.0	-79.1
Cash flows from financing activities
Net drawdown/repayment of credit facility		-50.7	-47.3	30.6	19.9	59.0
Financing fees paid		-0.3	–	–	–	-1.3
Total cash flows from financing activities		-51.0	-47.3	30.6	19.9	57.7
Change in cash and cash equivalents		-5.5	-2.9	-0.3	-10.8	-5.9
Cash and cash equivalents at the beginning of the period		21.8	18.7	26.9	36.9	26.9
Currency exchange difference in cash and cash equivalents		-0.3	0.2	1.4	1.9	0.8
Cash and cash equivalents at the end of the period		16.0	16.0	28.0	28.0	21.8

1 Includes acquisitions of renewable energy assets and funding of joint ventures.

Consolidated Statement of Changes in Equity

	Attributable to owners of the Parent Company
	Additional paid				Non
	Share	in- capital/Other	Retained		controlling	Total
MEUR	capital	reserves	earnings	Total	interest	equity
1 January 2023	0.4	310.3	40.7	351.4	8.3	359.7
Comprehensive income
Net result	–	–	-8.0	-8.0	0.4	-7.6
Other comprehensive income	–	4.6	–	4.6	-0.1	4.5
Total comprehensive income	–	4.6	-8.0	-3.4	0.3	-3.1
Transactions with owners
Non-controlling interests	–	–	–	–	-5.9	-5.9
Share based payments	–	–	2.7	2.7	–	2.7
Total transactions with owners	–	–	2.7	2.7	-5.9	-3.2
31 December 2023	0.4	314.9	35.4	350.7	2.7	353.4
Comprehensive income
Net result	–	–	4.3	4.3	0.1	4.4
Other comprehensive income	–	-1.9	–	-1.9	0.0	-1.9
Total comprehensive income	–	-1.9	4.3	2.4	0.1	2.5
Transactions with owners
Non-controlling interests	–	–	–	–	-0.2	-0.2
Share based payments	–	1.5	–	1.5	–	1.5
Other	–	–	0.4	0.4	–	0.4
Total transactions with owners	–	1.5	0.4	1.9	-0.2	1.7
30 June 2024	0.4	314.5	40.1	355.0	2.6	357.6

Notes to the consolidated financial statements

Note 1 – Accounting policies

This interim report has been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting.

The Company has from 1 January 2023 changed its presentation currency from US dollar to Euro to better reflect the economic environment in which the Company operates. Assets and liabilities, for each period presented, have been translated at closing rate of the respective balance sheet date. Income and expenses for each period presented have been translated at average rate for the period and all resulting exchange differences have been recognised in other comprehensive income.

The accounting policies adopted are in all other aspects consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2023.

The financial reporting of the Parent Company has been prepared in accordance with accounting principles generally accepted in Sweden, applying RFR 2 Reporting for legal entities, issued by the Swedish Financial Reporting Board and the Annual Accounts Act (SFS 1995:1554).

The Parent Company's financial information is reported in Swedish krona.

Note 2 – Share in result of associates and joint ventures MEUR	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Metsälamminkangas Wind Oy (50%)	-2.1	-1.6	0.1	-0.7	-3.2
Leikanger Kraft AS (50%)	–	–	0.4	0.5	0.3
Other	-0.1	0.0	0.0	-0.1	0.2
	-2.2	-1.6	0.5	-0.3	-2.7

Note 3 – Finance income MEUR	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Foreign currency exchange gain, net	–	–	–	–	–
Interest income	3.0	1.4	2.6	1.3	5.9
Other	0.0	0.0	0.6	0.0	0.4
	3.0	1.4	3.2	1.3	6.3

Note 4 – Finance costs MEUR	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Foreign currency exchange loss, net	0.7	-0.7	5.7	3.1	2.6
Interest expense	2.9	1.2	1.8	1.0	4.8
Other	0.6	0.3	0.4	0.2	1.0
	4.2	0.8	7.9	4.3	8.4

Note 5 – Income tax MEUR	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Current tax	0.0	0.0	-0.1	-0.1	-0.2
Deferred tax	5.5	5.3	0.1	0.0	11.7
	5.5	5.3	0.0	-0.1	11.5

Notes to the consolidated financial statements

Note 6 – Related party transactions

Orrön Energy recognises the following related parties: associated companies, jointly controlled entities, key management personnel and members of their close family or other parties that are partly, directly or indirectly controlled by key management personnel or of its family or of any individual that controls, or has joint control or significant influence over the entity.

During the reporting period, the Group has entered into material transactions with related parties on a commercial basis including the transactions described below.

At the balance sheet date, the Group had an outstanding loan receivable on associates and joint ventures of MEUR 72.9 relating to MLK, which amounted to MEUR 94.9 at year-end 2023 and related to MLK and Leikanger. Interest income on loans to associates and joint ventures amounted to MEUR 2.9 (MEUR 2.5) during the reporting period.

Note 7 – Risks and risk management

Orrön Energy pursues a business that is exposed to changes in energy prices, which in turn are dependent on macro-economic factors and geopolitical conditions. The Company's operations have an impact on the surrounding environment and operational processes are associated with occupational health and safety risks.

Risks and risk management are described in the 2023 Annual and Sustainability Report on pages 17–19 and are in all material aspects unchanged. Additional information on financial risks and information on how Orrön Energy manages these risks, including liquidity, credit and market risks are addressed in note 9 to the consolidated financial statements in the 2023 Annual and Sustainability Report.

Orrön Energy places risk management responsibility at all levels within the Company to continually identify, understand and manage threats and opportunities affecting the business. This enables the Company to make informed decisions and to prioritise control activities and resources to deal effectively with any potential threats and opportunities.

Note 8 – Financial instruments

The Group holds the following financial instruments:

MEUR	Level	30 June 2024	31 December 2023
Financial assets
Financial assets at amortised cost
Other non-current financial assets	2	74.9	95.5
Trade receivables		0.7	1.7
Other current financial assets1		10.1	5.7
Cash and cash equivalents		16.0	21.8
		101.6	124.7
Financial assets at fair value through profit or loss
Other current financial assets1 – Derivative financial instruments	2	–	–
		–	–
Financial assets at fair value through other comprehensive income
Other current financial assets1 – Equity securities	1	0.4	–
		0.4	–
Financial liabilities
Financial liabilities at amortised cost
Interest-bearing loans and borrowings		62.8	114.7
Trade and other payables		10.1	12.7
Other current financial liabilities		0.6	0.8
		73.5	128.2
Financial liabilities at fair value through profit or loss
Other current financial liabilities – Derivative financial instruments	2	–	–
		–	–

¹ Other current financial assets on the face of the balance sheet are divided in this table in financial assets at amortised cost, financial assets at fair value through profit and loss and financial assets at fair value through other comprehensive income.

The nature of financial assets and liabilities is, in all material respects, the same as on December 31, 2023. The carrying amounts and fair values are deemed to essentially correspond with one another.

For financial assets and liabilities measured at fair value in the balance sheet, the following fair value measurement hierarchy is used:

– Level 1: based on quoted prices in active markets;

– Level 2: based on inputs other than quoted prices as within level 1, that are either directly or indirectly observable;

– Level 3: based on inputs which are not based on observable market data.

Notes to the consolidated financial statements

Note 9 – Supplementary information to the statement of cash flows

The consolidated statement of cash flows is prepared in accordance with the indirect method.

Adjustments for items not included in the cash flow MEUR	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Depreciation	7.9	3.8	5.7	2.7	11.9
Current tax	0.0	0.0	0.1	0.1	0.2
Deferred tax	-5.6	-5.4	-0.1	0.0	-11.6
Long-term incentive plans	1.6	0.8	1.2	0.7	2.3
Foreign currency exchange gain/loss	0.5	-0.8	4.5	2.4	1.3
Amortisation of deferred financing fees	0.2	0.1	–	–	–
Interest income	-3.0	-1.4	-2.5	-1.2	-5.9
Interest expense	3.2	1.4	2.0	1.2	5.5
Result from associated companies and joint ventures	2.2	1.6	-0.5	0.3	2.7
Profit from sale of joint venture	-10.9	-10.9	–	–	–
Other	–	–	0.4	0.0	1.7
	-3.9	-10.8	10.8	6.2	8.1

Parent Company Income Statement

MSEK	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Revenue	19.6	9.4	17.3	16.7	41.9
General and administration expenses	-100.9	-50.8	-100.4	-57.2	-192.5
Operating profit/loss	-81.3	-41.4	-83.1	-40.5	-150.6
Finance income	125.6	125.2	186.2	186.2	186.3
Finance costs	-2.7	-1.8	-5.1	-4.2	-5.4
Net financial items	122.9	123.4	181.1	182.0	180.9
Profit/loss before income tax	41.6	82.0	98.0	141.5	30.3
Income tax	0.0	0.0	–	–	130.0
Net result	41.6	82.0	98.0	141.5	160.3

Parent Company Comprehensive Income Statement

MSEK	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Net result	41.6	82.0	98.0	141.5	160.3
Items that will not be reclassified to profit or loss:
Changes in the fair value of equity investments	5.1	5.1	–	–	–
Total comprehensive income	46.7	87.1	98.0	141.5	160.3
Attributable to: Shareholders of the Parent Company	46.7	87.1	98.0	141.5	160.3

Parent Company Balance Sheet

MSEK	30 June 2024	31 December 2023
ASSETS
Non-current assets
Shares in subsidiaries	3,780.8	3,780.8
Other tangible fixed assets	0.1	0.1
Deferred tax assets	436.0	436.0
	4,216.9	4,216.9
Current assets
Receivables	4.9	5.9
Other financial assets	5.1	–
Cash and cash equivalents	104.5	111.5
	114.5	117.4
TOTAL ASSETS	4,331.4	4,334.3
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity including net result for the period	4,296.7	4,243.2
Non-current liabilities
Interest-bearing loans and borrowings	–	39.5
	–	39.5
Current liabilities
Other liabilities	34.7	51.6
	34.7	51.6
TOTAL LIABILITIES	34.7	91.1
TOTAL EQUITY AND LIABILITIES	4,331.4	4,334.3

Parent Company Statement of Cash Flows

MSEK	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Cash flows from operating activities
Net result	41.6	82.0	98.0	141.5	160.3
Adjustments for items not included in the cash flow	-119.8	-122.2	-125.6	-126.8	-254.1
Changes in working capital	-1.3	-6.6	2.1	-26.0	24.8
Total cash flows from operating activities	-79.5	-46.8	-25.5	-11.3	-69.0
Cash flows from investing activities
Result from equity investments	4.0	4.0	–	–	–
Dividends received	–	–	127.9	127.9	127.9
Total cash flows from investing activities	4.0	4.0	127.9	127.9	127.9
Cash flows from financing activities
Net drawdown/repayment of loan	68.5	37.5	-12.0	-40.4	28.0
Total cash flows from financing activities	68.5	37.5	-12.0	-40.4	28.0
Change in cash and cash equivalents	-7.0	-5.3	90.4	76.2	86.9
Cash and cash equivalents at the beginning of the period	111.5	109.8	24.6	38.9	24.6
Currency exchange difference in cash and cash equivalents	–	–	–	–	–
Cash and cash equivalents at the end of the period	104.5	104.5	115.0	115.0	111.5

Parent Company Statement of Changes in Equity

	Restricted equity		Unrestricted equity
MSEK	Share capital	Statutory reserve	Other reserves	Retained earnings	Dividends	Total equity
1 January 2023	3.5	861.3	7,182.7	55,573.3	-59,542.8	4,078.0
Transfer of prior year dividends	–	–	–	-59,542.8	59,542.8	–
Total comprehensive income	–	–	–	160.3	–	160.3
Transactions with owners
Share based payments	–	–	–	4.9	–	4.9
Total transactions with owners	–	–	–	4.9	–	4.9
31 December 2023	3.5	861.3	7,182.7	-3,804.3	–	4,243.2
Comprehensive income
Net result	–	–	–	41.6	–	41.6
Other comprehensive income	–	–	–	5.1	–	5.1
Total comprehensive income	–	–	–	46.7	–	46.7
Transactions with owners
Share based payments	–	–	2.8	–	–	2.8
Other	–	–	–	4.0	–	4.0
Total transactions with owners	–	–	2.8	4.0	–	6.8
30 June 2024	3.5	861.3	7,185.5	-3,753.6	–	4,296.7

The alternative performance measures presented and disclosed in this interim report are used internally by management in conjunction with IFRS measures to measure performance and make decisions regarding the future direction of the business. The Group believes that these alternative performance measures, when provided in combination with reported IFRS measures, provide helpful supplementary information for investors.

In addition to the consolidated financial reporting in line with IFRS, the Group provides proportionate financial reporting, which forms part of the alternative performance measures the Group presents. Proportionate reporting is aligned with the Group's internal management reporting, analysis and decision making.

Proportionate financials represent Orrön Energy's proportionate share of all the entities in which the Group holds an ownership.

This is different to the consolidated financial reporting under IFRS, where the results from entities in which the Group holds an ownership of 50 percent or less are not fully consolidated but instead reported on one line, as share of result in joint ventures. All entities, in which the Group holds an ownership of more than 50 percent are fully consolidated in the financial reporting presented under IFRS.

Reconciliations of relevant alternative performance measures are provided on the following page. Definitions of the performance measures are provided under the key ratio definitions below.

Financial data MEUR	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Consolidated financials
Revenue	17.0	4.7	17.3	5.9	28.0
EBITDA	8.0	4.9	2.5	-2.1	-5.1
Operating profit (EBIT)	0.1	1.1	-3.2	-4.8	-17.0
Net result	4.4	7.0	-7.9	-7.9	-7.6
Net cash (-) / Net debt (+)	47.4	47.4	57.1	57.1	93.7
Proportionate financials
Power generation (GWh)	456	182	378	164	765
Average price achieved per MWh – EUR	42	31	61	54	47
Revenue	19.1	5.6	23.0	9.0	36.2
EBITDA	11.8	6.7	8.3	1.6	5.3
Operating profit (EBIT)	2.0	2.0	0.6	-2.0	-11.0
Net cash (-) / Net debt (+)	46.2	46.2	50.5	50.5	92.4

	1 Jan 2024-	1 Apr 2024-	1 Jan 2023-	1 Apr 2023-	1 Jan 2023-
Data per share	30 Jun 2024	30 Jun 2024	30 Jun 2023	30 Jun 2023	31 Dec 2023
EUR	6 months	3 months	6 months	3 months	12 months
Earnings per share	0.02	0.02	-0.03	-0.03	-0.03
Earnings per share – diluted	0.02	0.02	-0.03	-0.03	-0.03
EBITDA per share	0.03	0.02	0.01	-0.01	-0.02
EBITDA per share – diluted	0.03	0.02	0.01	-0.01	-0.02
Number of shares issued at period end	285,924,614	285,924,614	285,924,614	285,924,614	285,924,614
Number of shares in circulation at period end	285,905,187	285,905,187	285,924,614	285,924,614	285,924,614
Weighted average number of shares for the period	285,920,665	285,916,715	285,924,614	285,924,614	285,924,614
Weighted average number of shares for the period – diluted	291,855,665	292,206,007	288,818,128	288,522,753	288,526,711
Share price
Share price at period end in SEK	7.15	7.15	11.34	11.34	7.96
Share price at period end in EUR1	0.63	0.63	0.96	0.96	0.72
Key ratios
Return on equity (%)	1	2	-2	-2	-2
Return on capital employed (%)	0	0	-1	-1	-4
Equity ratio (%)	81	81	73	73	71

1 Share price at period end in EUR is calculated based on quoted share price in SEK and applicable SEK/EUR exchange rate at period end.

EBITDA – Consolidated financials MEUR	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Operating profit/loss (EBIT)	0.1	1.1	-3.2	-4.8	-17.0
Add: Depreciation	7.9	3.8	5.7	2.7	11.9
	8.0	4.9	2.5	-2.1	-5.1

Net debt/Net cash – Consolidated financials MEUR	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Interest-bearing loans and borrowings – Non current	62.8	62.8	83.0	83.0	114.7
Interest-bearing loans and borrowings – Current	0.6	0.6	2.0	2.0	0.8
Less: Cash and cash equivalents	-16.0	-16.0	-28.0	-28.0	-21.8
	47.4	47.4	57.0	57.0	93.7

EBITDA – Proportionate financials MEUR	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Operating profit/loss (EBIT)	2.0	2.0	0.4	-2.2	-11.0
Add: Depreciation	9.8	4.7	7.9	3.8	16.3
	11.8	6.7	8.3	1.6	5.3

Net debt/Net cash – Proportionate financials MEUR	1 Jan 2024- 30 Jun 2024 6 months	1 Apr 2024- 30 Jun 2024 3 months	1 Jan 2023- 30 Jun 2023 6 months	1 Apr 2023- 30 Jun 2023 3 months	1 Jan 2023- 31 Dec 2023 12 months
Net cash/Net debt – Consolidated financials	47.4	47.4	57.0	57.0	93.7
Add/Less: Cash and cash equivalents of Associates and joint ventures	0.2	0.2	-6.5	-6.5	-3.5
Add/Less: External interest-bearing loans and borrowings of Associates and joint ventures	-1.4	-1.4	–	–	2.2
	46.2	46.2	50.5	50.5	92.4

Bridge from proportionate to consolidated financials

1 Jan – 30 Jun 2024 – 6 months	Proportionate financials	Residual ownership for fully consolidated	Elimination of equity consolidated	Consolidated financials
MEUR		entities1	entities2
Revenue	19.1	0.9	-3.0	17.0
Other income	11.2	0.0	-0.3	10.9
Operating expenses	-8.0	-0.8	1.6	-7.2
General and administration expenses	-10.5	0.0	0.0	-10.5
Share in result of associates and joint ventures	0.0	0.0	-2.2	-2.2
EBITDA	11.8	0.1	-3.9	8.0
Depreciation	-9.8	0.0	1.9	-7.9
Operating profit (EBIT)	2.0	0.1	-2.0	0.1
Net financial items	-3.7	0.0	2.5	-1.2
Tax	6.0	0.0	-0.5	5.5
Net result	4.3	0.1	–	4.4
Attributable to:
Shareholders of the Parent Company	4.3	–	–	4.3
Non-controlling interest	–	0.1	–	0.1

¹ Residual ownership interests share of the proportionate financials in fully consolidated subsidiaries where Orrön Energy does not have 100 percent economic interest.

² Elimination of proportionate financials from equity consolidated entities adjusted for Orrön Energy's share of net income/loss.

1 Apr – 30 Jun 2024 – 3 months	Proportionate financials	Residual ownership for fully consolidated	Elimination of equity consolidated	Consolidated financials
MEUR		entities1	entities2
Revenue	5.6	0.0	-0.9	4.7
Other income	10.8	0.0	0.0	10.8
Operating expenses	-4.0	-0.1	0.8	-3.3
General and administration expenses	-5.7	0.0	0.0	-5.7
Share in result of associates and joint ventures	0.0	0.0	-1.6	-1.6
EBITDA	6.7	-0.1	-1.7	4.9
Depreciation	-4.7	0.0	0.9	-3.8
Operating profit (EBIT)	2.0	-0.1	-0.8	1.1
Net financial items	-0.6	0.0	1.2	0.6
Tax	5.7	0.0	-0.4	5.3
Net result	7.1	-0.1	–	7.0
Attributable to:
Shareholders of the Parent Company	7.1	–	–	7.1
Non-controlling interest	–	-0.1	–	-0.1

¹ Residual ownership interests share of the proportionate financials in fully consolidated subsidiaries where Orrön Energy does not have 100 percent economic interest. ² Elimination of proportionate financials from equity consolidated entities adjusted for Orrön Energy's share of net income/loss.

Bridge from proportionate to consolidated financials

1 Jan – 30 Jun 2023 – 6 months	Proportionate financials	Residual ownership for fully consolidated	Elimination of equity consolidated	Consolidated financials
MEUR		entities1	entities2
Revenue	23.0	2.3	-8.0	17.3
Other income	0.6	0.1	-0.3	0.4
Operating expenses	-6.5	-2.3	1.9	-6.9
General and administration expenses	-8.8	–	–	-8.8
Share in result of associates and joint ventures	–	–	0.5	0.5
EBITDA	8.3	0.1	-5.9	2.5
Depreciation	-7.9	–	2.2	-5.7
Operating profit (EBIT)	0.4	0.1	-3.7	-3.2
Net financial items	-7.6	0.5	2.4	-4.7
Tax	-1.1	-0.2	1.3	-0.0
Net result	-8.3	0.4	–	-7.9
Attributable to:
Shareholders of the Parent Company	-8.3	–	–	-8.3
Non-controlling interest	–	0.4	–	0.4

¹ Residual ownership interests share of the proportionate financials in fully consolidated subsidiaries where Orrön Energy does not have 100 percent economic interest. ² Elimination of proportionate financials from equity consolidated entities adjusted for Orrön Energy's share of net income/loss.

1 Apr – 30 Jun 2023 – 3 months	Proportionate financials	Residual ownership for fully consolidated	Elimination of equity consolidated	Consolidated financials
MEUR		entities1	entities2
Revenue	9.0	1.1	-4.2	5.9
Other income	0.5	0.0	-0.3	0.2
Operating expenses	-3.4	-1.0	1.0	-3.4
General and administration expenses	-4.5	–	–	-4.5
Share in result of associates and joint ventures	0.0	-0.1	-0.2	-0.3
EBITDA	1.6	0.0	-3.7	-2.1
Depreciation	-3.8	–	1.1	-2.7
Operating profit (EBIT)	-2.2	0.0	-2.6	-4.8
Net financial items	-5.0	0.6	1.4	-3.0
Tax	-1.1	-0.2	1.2	-0.1
Net result	-8.3	0.4	–	-7.9
Attributable to:
Shareholders of the Parent Company	-8.3	–	–	-8.3
Non-controlling interest	–	0.4	–	0.4

¹ Residual ownership interests share of the proportionate financials in fully consolidated subsidiaries where Orrön Energy does not have 100 percent economic interest. ² Elimination of proportionate financials from equity consolidated entities adjusted for Orrön Energy's share of net income/loss.

Bridge from proportionate to consolidated financials

1 Jan – 31 Dec 2023 – 12 months	Proportionate financials	Residual ownership for fully consolidated	Elimination of equity consolidated	Consolidated financials
MEUR		entities1	entities2
Revenue	36.2	3.6	-11.8	28.0
Other income	0.8	0.0	-0.4	0.4
Operating expenses	-13.5	-3.1	4.0	-12.6
General and administration expenses	-18.2	–	–	-18.2
Share in result of associates and joint ventures	–	–	-2.7	-2.7
EBITDA	5.3	0.5	-10.9	-5.1
Depreciation	-16.3	-0.1	4.5	-11.9
Operating profit (EBIT)	-11.0	0.4	-6.4	-17.0
Net financial items	-7.9	0.2	5.6	-2.1
Tax	10.9	-0.2	0.8	11.5
Net result	-8.0	0.4	–	-7.6
Attributable to:
Shareholders of the Parent Company	-8.0	–	–	-8.0
Non-controlling interest	–	0.4	–	0.4

¹ Residual ownership interests share of the proportionate financials in fully consolidated subsidiaries where Orrön Energy does not have 100 percent economic interest. ² Elimination of proportionate financials from equity consolidated entities adjusted for Orrön Energy's share of net income/loss.

Earnings per share: Net result attributable to shareholders of the Parent Company divided by the weighted average number of shares for the period.

Earnings per share – diluted: Net result attributable to shareholders of the Parent Company divided by the weighted average number of shares for the period after considering any dilution effect.

EBIT (Earnings Before Interest and Tax): Operating profit.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation): Operating profit before depreciation.

Equity ratio: Total equity divided by the balance sheet total.

Net debt/Net cash – Consolidated: Interest-bearing loans and borrowings less cash and cash equivalents.

Net debt/Net cash – Proportionate: Net cash/Net debt – Consolidated less cash and cash equivalents of associates and joint ventures plus/minus adjustment for external interest-bearing loans and borrowings of associates and joint ventures.

Return on equity: Net result divided by average total equity.

Return on capital employed: Income before tax plus interest expenses plus/less currency exchange differences on financial loans divided by the average capital employed (the average balance sheet total less non-interest-bearing liabilities).

Weighted average number of shares for the period: The number of shares at the beginning of the period with changes in the number of shares weighted for the proportion of the period they are in issue.

Weighted average number of shares for the period – diluted: The number of shares at the beginning of the period with changes in the number of shares weighted for the proportion of the period they are in issue after considering any dilution effect.

CHF Swiss franc GWh Giga Watt hours EUR Euro MWh Mega Watt hours GBP British pound sterling NOK Norwegian Krone SEK Swedish Krona TSEK Thousand SEK MEUR Million EUR MSEK Million SEK

Definitions and abbreviations Industry related terms and measurements

Shareholders' information

Daniel Fitzgerald, CEO and Espen Hennie, CFO comment on the second quarter results 2024.

Listen to Daniel Fitzgerald, CEO and Espen Hennie, CFO commenting on the report and presenting the latest developments in Orrön Energy and its future growth strategy at a webcast held on 8 August 2024 at 14.00 CEST. The presentation will be followed by a question-and-answer session.

Follow the presentation live on the below webcast link: https://us06web.zoom.us/webinar/register/WN_EA3HdiLpQE-nqyE3MH48zQ

Financial Calendar

• Interim report for the third quarter of 2024 6 November 2024
• Year-end report 2024 12 February 2025
• Annual and Sustainability report 2024 9 April 2025

The AGM will be held on 5 May 2025.

Contacts

Robert Eriksson

Director Corporate Affairs and Investor Relations Tel: +46 701 11 26 15 robert.eriksson@orron.com

Jenny Sandström

Communications Lead Tel: +41 79 431 63 68 jenny.sandstrom@orron.com

This information is information that Orrön Energy AB is required to make public pursuant to the Swedish Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07.30 CEST on 8 August 2024.

Forward-Looking Statements

Statements in this report relating to any future status or circumstances, including statements regarding future performance, growth and other trend projections are forward-looking statements. These statements may generally, but not always, be identified by the use of words such as "anticipate", "believe", "expect", "intend", "plan", "seek", "will", "would" or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that could occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to several factors, many of which are outside the Company's control. Any forward- looking statements in this report speak only as of the date on which the statements are made and the Company has no obligation (and undertakes no obligation) to update or revise any of them, whether as a result of new information, future events or otherwise.

Corporate Head Office Orrön Energy AB (publ) Hovslagargatan 5 SE-111 48 Stockholm, Sweden T +46-8-440 54 50 W orron.com