Arise

Interim / Quarterly Report • Jul 17, 2024

We create renewable energy

Interim report 1 January-30 June 2024

Interim report 1 January-30 June 2024

Second quarter (1 April-30 June 2024)

• · Net sales for the quarter amounted to MSEK 101 (110).
• · Operating profit before depreciation and amortisation (EBITDA) was MSEK 53 (69).
• Operating profit (EBIT) was MSEK 33 (53).
• Profit after tax totalled MSEK 30 (36) and earnings per share amounted to SEK 0.76 (0.85).
• Operating cash flow was MSEK 24 (60) and cash flow after investments amounted to MSEK -34 (-167).
• Production generated 69 GWh (54) of green electricity with an average income of SEK 549 per MWh (947).

	Q2	02	02	02	Q2
Selected key figures	2024	2073	2022	2021	2020
Net sales, MSEK	101	110	53	36	30
EBITDA, MSEK	53	69	25	12	6
Earnings per share, SEK	0.76	0.85	-0.13	-0.16	-0.80
Adjusted equity per share, SEK	59	63	29	24	23
Equity/assets ratio, %	57	59	35	51	45
Project portfolio, MW	~7,900	~5,700	~2,350	~1,300	~1,300

■ The project portfolio increased by 745 MW during the quarter.

First half of the year (1 January-30 June 2024)

• ▪
• Operating profit before depreciation and amortisation (EBITDA) totalled MSEK 123 (145).
• Operating profit (EBIT) was MSEK 87 (114).
• Profit after tax totalled MSEK 77 (88) and earnings per share amounted to SEK 1.90 (2.01).
• Operating cash flow was MSEK 142 (90) and cash flow after investments amounted to MSEK 20 (-208).
• Production generated 159 GWh (141) of green electricity with an average income of SEK 661 per MWh (940).
• The project portfolio increased by almost 1,000 MW during the first half of the year.

Significant events during the first half of the year

• In May, Arise announced that the Board had resolved to utilise the authorisation granted by the 2024 Annual General Meeting to buy back the company's own shares up to MSEK 50 ahead of the 2025 Annual General Meeting. Under this share buyback programme and the previous buyback programme, 2,201,045 own shares were repurchased for MSEK 97 during the first half of the year.
• · In May, Eva Vitell announced that she was leaving the Board of Arise at her own request, since she had accepted a position with Svenska Kraftnät.
• In May, the Lebo wind farm was completed. The wind farm is fully owned by Arise, has a capacity of 33 MW and is located in price area 3. Following the completion, Lebo is part of the Production segment.
• Arise announced in June that the earnout payment for the Ranasjö- and Salsjöhöjden project had been established at MEUR 6.6, which was received in the same month. Of the earnout amount, MEUR 4.2 had already been recognised whereby the earnings effect for the quarter amounted to MEUR 2.4.
• Finsilva, one of Finland's largest landowners. The cooperation opens up opportunities for the development of new wind and solar projects, which may also include battery storage. Five project areas have been identified with estimated potential of approximately 500 MW.

A strong quarter and healthy growth in the project portfolio

The company delivered a strong quarter with EBITDA of MSEK 53 and net profit of MSEK 30, especially considering that the second quarter is normally a period of lower production revenue. Favourable price hedging and the Lebo project, which increases our own production by more than 25%, contribute to the result. We also received the earnout for the Ranasjö- and Salsjöhöjden project. We are continuing to present very healthy growth in our project portfolio, which increased by 745 MW. Furthermore, our focus on accelerating projects has resulted in projects in late developmental phase increasing by 175 MW. In total, this means that we are in line with delivering on our financial targets.

Arise has an established organisation that is making good progress in the UK in all technologies (wind/solar/battery storage). The new government in the UK has taken steps to accelerate the expansion of onshore wind and solar power in England. For example, the permitting process for onshore wind power is being significantly improved with the aim of doubling capacity by 2030. The target for solar power is to triple capacity. We are well positioned to capitalise on the improved market conditions and have several wind projects under development that are now being accelerated.

It is also gratifying to state that we are continuing to make good progress in Finland which the cooperation agreement with Finsilva, one of Finland's largest landowners, is further confirmation of

Electricity prices were at a significantly lower level during the quarter compared to the same period last year, driven by a high supply of solar power in Europe and low demand. At the same time, we have had relatively weak winds and thus low wind power production. Despite these conditions, own production is making a strong contribution to earnings.

The current situation in the electricity market and macroeconomic factors such as the interest rate market have likely impacted traditional investors' yield requirements and project valuations. Meanwhile, we have seen examples of private equity players entering the market with a patently positive market view. We believe that several factors, such as lower interest rates, the trend in investment costs and potentially higher electricity prices, could contribute to a recovery as early as this year. Arise's strong financial position means that we now have the option to optimise value by deciding ourselves if and when we want to sell projects.

Finally, we have now ended the first half of the year with strong earnings despite a weaker market and a solid performance when it comes to growing our project portfolio and completing projects. Our business model clearly works well. We maintain our strong belief in the market, the ambition of selling at least one project during the year remains and we expect 2024 to be another good year in which we continue to deliver shareholder value.

Halmstad, 17 July 2024 Per-Erik Eriksson CEO

"Finally, we have now ended the first half of the year with strong earnings despite a weaker market and a solid performance when it comes to growing our project portfolio and completing projects. Our business model clearly works well."

Net sales and results

MSEK	Q2 2024	Q2 2023	H1 2024	H1 2023
Net sales	101	110	213	217
EBITDA	53	റ്റും	123	145
EBIT	33	53	87	114
Profit before tax	30	36	77	88
Profit after tax	30	36	77	88

Comments on the second quarter

Income for Development increased slightly compared with the year-earlier quarter due to the earnout received for Ranasjö- and Salsjöhöjden. In Production, the second quarter was characterised by significantly lower market prices for electricity than in the same period last year. Despite higher production, with the takeover of Lebo in commercial operation in May, production revenue declined. Revenue in Solutions increased from the year-earlier period primarily due to the asset management assignment for Skaftåsen and assignment during the construction of Fasikan.

Net sales amounted to MSEK 101 (110). Production generated 69 GWh (54) of green electricity while the average realised price declined to SEK 549 per MWh (947). Operating expenses amounted to MSEK -57 (-46). Overall, EBITDA amounted to MSEK 53 (69). Depreciation amounted to MSEK -20 (-16), resulting in EBIT of MSEK 33 (53). Net financial items amounted to MSEK -3 (-17), of which exchange rate differences corresponded to MSEK 7 (-4). The company's electricity production assets are valued in EUR and income is received in EUR. The company has therefore chosen to take loans in EUR, creating a natural hedge. Changes to the EUR/SEK exchange rate will continue to affect comparability of net financial items, whereby a strengthening of SEK will improve the net and vice versa. Corresponding reverse value changes in SEK terms for the underlying assets are not recognised. Profit before and after tax amounted to MSEK 30 (36).

Cash flow and investments

Comments on the second quarter

Cash flow from operating activities before changes in working capital was MSEK 60 (69). Changes in working capital were MSEK -36 (-9) and the total operating cash flow was thus MSEK 24 (60). Net cash flow from investing activities was MSEK -59 (-227), with the majority driven by investments in Lebo. Cash flow after investments thus amounted to MSEK -34 (-167). New loans amounting to MSEK 23 (0) related to Lebo were raised and amortisations totalling MSEK -27 (-40) were paid. Interest and financing costs of MSEK -24 (-19) were paid. Share buybacks and dividends were carried out for a total of MSEK -100 (-44), after which cash flow for the quarter, adjusted for lease effects, amounted to MSEK -165 (-273).

Financing and liquidity

At the end of the period, the company had a net debt of MSEK 358 (32), an increase primarily explained by loans raised related to the construction of the Lebo project, which was completed during the quarter. In addition, the company has paid dividends and carried out share buybacks in order to optimise the company's capital structure and increase shareholder value. Cash and cash equivalents at the end of the period totalled MSEK 804 (946). At the end of the period, the equity/assets ratio was 57% (59), which was also impacted by the cancellation of 1,780,934 shares as resolved by the AGM.

MSEK	Q2 2024	Q2 2023	H1 2024	H1 2023
Income	52	50	84	67
Cost of sold projects	-1		-2
Other operating expenses and capitalised work	-18	-9	-29	-15
Operating profit before depreciation (EBITDA)	33	42	54	53
Operating profit (EBIT)	33	42	52	ર્દિક
Profit before tax	16	29	24	33

Development

Comments on the second quarter

Revenue increased slightly during the quarter, driven by the earnout received for Ranasjöand Salsjöhöjden, which had an earnings effect of MEUR 2.4 in the quarter. Since the company's revenue recognition is in EUR, a stronger SEK had a negative impact on revenue during the quarter. The Lebo project was completed in early May and was then transferred to the Production segment.

The project portfolio continued to develop positively during the quarter and efforts to accelerate projects led to an increase in late-stage projects by 175 MW, related to battery projects in Sweden and Finland. In Finland, a cooperation agreement was signed between Pohjan Voima and Finsilva during the quarter, which has the potential for almost 500 MW in its initial phase. Development activities in the UK are also progressing and the UK project portfolio increased by more than 100 MW during the quarter. The new UK government has specifically stated that it will focus on the development of renewable energy, including a new regulatory framework for onshore wind power in England. Over the past year, the company has

evaluated a number of areas for wind power with total potential of 300 MW and is well positioned to now accelerate development and qualify these for the project portfolio. Line concession work is ongoing for Finnåberget in Sweden and the continued goal is to be able to divest the project in 2025, though there is still some uncertainty regarding the capacity of the grid connection. Development activities related to the solar projects and battery projects in Sweden also reported a positive performance for the quarter. In Ukraine, discussions on cooperation and evaluation of several projects with good potential are ongoing, and we are continuing to see increased activity in the market.

Income increased to MSEK 52 (50). Cost of sold projects amounted to MSEK -1 (0). Other operating expenses and capitalised work totalled MSEK -18 (-9). EBITDA amounted to MSEK 33 (42). Depreciation and amortisation amounted to MSEK -1 (0), whereby EBIT amounted to MSEK 33 (42). Net financial items amounted to MSEK -16 (-13), of which exchange rate differences corresponded to MSEK -7 (-1). Profit before tax thus amounted to MSEK 16 (29).

Portfolio

Arise's development portfolio on the reporting date is presented below, amounting to almost 7,900 MW. The portfolio is divided into projects in late developmental phases, which amount to a total of almost 1,100 MW, and projects in early developmental phases, which amount to a total of approximately 6,800 MW. The company is working actively to expand the project portfolio particularly concerning wind and solar power in the Nordic countries, UK and Ukraine, but is also continuously evaluating new geographies. Efforts to expand the project portfolio include greenfield projects and acquisitions of projects at varying stages. The company is also developing several projects in battery storage.

In working to increase its project portfolio, Arise is evaluating a number of different conceivable projects. The vast majority of the projects being evaluated do not qualify for further development as they are not deemed realisable given their productions (wind and solar conditions), permit risks, grid capacity and economic potential. These primary factors were determined to be promising for the projects below. While individual projects may not always be realised, the overall project portfolio represents high potential value for the company, with relatively little capital tied-up and low risk.

Projects - late developmental phases			MW
Sweden			245
UK			70
Finland*			750
Total			1,065
Projects - early developmental phases			MW
Sweden**		ক্তি	~3,350
Sweden			~490
Norway		ર્જિ	~260
UK		વુંગ	~120
UK			~760
Finland*			~1,820
Total			~6,800

*) Represents Pohjan Voima's project portfolio. Arise's ownership in Pohjan Voima amounts to about 51%. **) Including assessed total potential of about 1,000 MW from the partnership with SCA. Arise's future ownership in these projects amounts to 49%.

Production

MSEK	Q2 2024	Q2 2023	H1 2024	H1 2023
Income	38	52	106	134
Operating expenses	-15	-16	-25	-26
Operating profit before depreciation (EBITDA)	23	36	81	107
Operating profit (EBIT)	5	21	48	78
Profit before tax	12	6	47	55

Comments on the second quarter

The quarter was characterised by significantly lower market prices than in the same period last year. With the inclusion of Lebo in the segment from May, production at the company's wind farms increased to 69 GWh (54). However, average income decreased markedly to SEK 549 per MWh (947) due to significantly lower market prices than in the year-earlier period. The company's price hedges meant that the average income nonetheless was in line with the average market price for the period.

Income amounted to MSEK 38 (52). Operating expenses amounted to MSEK -15 (-16), corresponding to a specific operating expense of SEK -220 per MWh (-301). EBITDA thus decreased to MSEK 23 (36). Depreciation increased to MSEK -18 (-15) and EBIT thus amounted to MSEK 5 (21). Net financial items amounted to MSEK 7 (-15), of which exchange rate differences corresponded to MSEK 11 (-11). Profit before tax thus amounted to MSEK 12 (6).

In accordance with IFRS, the production assets are not recognised at market value, but the company tests for impairment annually. In the impairment test in 2023, the value in use of the production assets exceeded the carrying amount by about MEUR 60% (85), which is included in the key performance indicator "Adjusted equity per share."

1) Based on a discount rate of 8.2%, the company's forecasts and energy price forecasts prepared by external experts. A change in the discount rate of +/- one percentage point would affect the value by approximately MEUR 10.

Hedged electricity prices		Q3 2024 Q4 2024	2024
MWh, SE4	22,100	22,100	44,200
EUR per MWh, SE4	104	104	104

Solutions

MSEK	Q2 2024	Q2 2023	H1 2024	H1 2023
Income	14	10	27	20
Operating expenses	-10	-9	-21	-20
Operating profit before depreciation (EBITDA)	3	O	7	O
Operating profit (EBIT)	3	O	7	O
Profit / loss before tax	3	O	7	O

Comments on the second quarter

In Solutions, the Fasikan construction management assignment and the Skaftåsen asset management assignment led to increased income compared with the year-earlier period. Income amounted to MSEK 14 (10). Operating expenses amounted to MSEK -10 (-9). EBITDA amounted to MSEK 3 (0). Depreciation and financial items were MSEK 0 (0) and EBIT and profit/loss before tax thus amounted to MSEK 3 (0).

Other significant events during the quarter

There were no other significant events during the quarter.

Related-party transactions

No significant transactions with related parties took place during the period.

Contingent liabilities

The Group's contingent liabilities are related to guarantees and counter indemnities that are issued to support the Group's obligations connected to solar and wind power projects. These are described in more detail on page 89 under Note 22 in the 2023 Annual Report.

Other significant events after the end of the reporting period

There were no other significant events after the end of the reporting period.

Outlook

There continues to be high uncertainty and global risks concerning security politics and energy supply, which makes the ongoing energy transition increasingly obvious in society. Despite a weak economy, demand for renewable energy production remains very strong. The company is well positioned with production of renewable electricity and a strong project portfolio. Accordingly, we see very good opportunities for continued growth and continued shareholder value creation. Our strong financial situation means that we have increased opportunities to maximise value creation in the business and also optimise our long-term income from both production and the project portfolio.

Risks and uncertainties

Risks and uncertainties affecting the Group are described on pages 49-50 of the 2023 Annual Report, and financial risk management is presented on pages 79-83.

Ownership structure

A presentation of the company's ownership structure is available on the website (www.arise.se)

Dividend policy

According to the Company's financial targets, dividends shall exceed 20% of profit after tax attributable to the Parent Company shareholders.

Parent Company

The Parent Company's operations comprise project development (identifying suitable solar and wind power locations, signing land lease agreements, producing impact assessments, preparing detailed development plans and permits), divesting projects to external investors, contracts and project management of new projects, managing internal projects (technically and financially) and managing the Group's trading of electricity and guarantees of origin.

The Parent Company manages the Group's production plans and electricity hedges in accordance with the adopted financial policy.

During the second quarter, the Parent Company's total income amounted to MSEK 18 (11) and purchases of electricity, certificates and guarantees of origin, personnel and other external expenses, capitalised work on own account and depreciation of non-current assets totalled MSEK -29 (-23), resulting in EBIT of MSEK -11 (-12). Net financial income of MSEK 1 (-3) resulted in loss after tax of MSEK -10 (-16). The Parent Company's net investments amounted to MSEK -38 (-200).

Accounting policies

Arise applies the International Financial Reporting Standards (IFRS), as adopted by the EU, and the interpretations of these (IFRIC). This interim report has been prepared in accordance with IAS 34 "Interim Financial Reporting." The Parent Company's financial statements have been prepared in accordance with the Swedish Annual Accounts Act and Recommendation RFR 2 of the Swedish Financial Reporting Board. The accounting policies are consistent with those applied in the 2023 Annual Report.

Review by the auditor

This report has not been reviewed by the company's auditor.

Financial calendar

· Third quarter (1 July-30 September)	7 November 2024
■ Fourth quarter (1 October-31 December)	14 February 2025
= First quarter (1 January-31 March)	29 April 2025
· Second quarter (1 April-30 June)	18 July 2025

Assurance from Board of Directors

The Board of Directors and the CEO hereby assure that this half-yearly report provides a fair review of the company's and the Group's operations, financial position and earnings and describes the material risks and uncertainties facing the company and the companies included in the Group.

Halmstad, 17 July 2024

Arise AB (publ)

Joachim Gahm	Johan Damne	Mikael Schoultz
Chairman	Board member	Board member
P-G Persson	Per-Erik Eriksson

For further information, please contact

Per-Erik Eriksson, CEO Tel. +46 (0) 702 409 902

Markus Larsson, CFO Tel. +46 (0) 735 321 776

arise

Consolidated income statement

	2024	2023	2024	2023	2023
(Amounts rounded to the nearest MSEK)	Q2	Q 2	6 mon	6 mon	FY
Net sales Note 1	101	110	213	217	503
Other operating income	2	1	3	2	3
Total income	103	111	216	219	507
Capitalised work on own account	7	3	12	5	11
Personnel costs	-25	-19	-46	-33	-90
Cost of sold projects	-1		-2		-43
Other external expenses	-29	-27	-53	-45	-92
Other operating expenses	-2	0	-2	-1	-7
Operating profit/loss before depreciation (EBITDA)	53	69	123	145	286
Depreciation and imp. of non-current assets Note
2,3	-20	-16	-37	-31	-64
Operating profit/loss (EBIT)	33	53	37	114	223
Profit/loss from financial item
Note 4	-3	-17	-10	-26	-23
Profit/loss before tax	30	રે જ	77	88	200
Tax on profit/loss for the period	0	0	0	0	O
Profit/loss for the period	30	36	11	88	200
Profit/loss for the period attributable to:
Parent company shareholders	32	38	81	90	206
Non-controlling interests	-2	-2	-5	-2	-6
Earnings per share regarding profit/loss
attributable to parent company shareholders:
Earnings per share, SEK	0.76	0.85	1.90	2.01	4.65

1) Treasury shares held by the Company, amounting to 1,039,213 shares, have not been included in calculating earnings per share.

ഷം arise

Consolidated statement of comprehensive income

	2024	2023	2024	2023	2023
(Amounts rounded to the nearest MSEK)	Q2	Q 2	6 mon	6 mon	EY
Profit/loss for the period	30	36	77	88	200
Other comprehensive income
Items that may be reclassified to the income state- ment:
Translation differences for period	-9	-1	14	-1	- Д
Cash flow hedges	-19	-8	-14	178	165
Income tax attributable to components of other
comprehensive income	4	2	3	-37	-34
Other comprehensive income for the period,
net after tax	-25	-8	4	140	127
Total comprehensive income for the period	6	29	80	228	327
Total comprehensive income for the period at- tributable to:
Parent company shareholders	12	31	78	230	337
Non-controlling interests	-7	-2	3	-2	-10

Consolidated balance sheet

	2024	2023	2023
(Condensed, amounts rounded to the nearest MSEK)	30 Jun	30 Jun	31 Dec
Intangible assets	31	30	30
Property, plant and equipment 1)	2,346	2,014	2,236
Non-current financial assets	266	233	244
Total non-current assets	2,643	2,277	2,510
Other current assets	325	357	380
Cash and cash equivalents	804	946	917
Total current assets	1,129	1,303	1,297
TOTAL ASSETS	3,772	3,580	3,807
Equity attributed to parent company shareholders	1,821	1,801	1,887
Equity attributed to non-controlling interests	318	328	318
Total equity	2,138	2,129	2,206
Non-current interest-bearing liabilities 2)	1,197	1,037	1,135
Other non-current liabilities	205	213	200
Provisions	88	63	90
Total non-current liabilities	1,490	1,313	1,425
Current interest-bearing liabilities 2)	60	33	ਦਰ
Other current liabilities	84	104	117
Total current liabilities	144	138	176
TOTAL EQUITY AND LIABILITIES	3,772	3,580	3,807

11 Property, plant and equipment include lease asset of MSEK 61 (60) on June 30, 2024.

2) Interest-bearing liabilities include lease liabilities of MSEK 66 (64) on June 30, 2024.

ഷ arise

Consolidated cash flow statement

	2024	2023	2024	2023	2023
(Condensed, amounts rounded to the nearest MSEK)	Q 2	Q 2	6 mon	6 mon	FY
Cash flow from operating activities before
changes in working capital	60	સ્ક	132	143	312
Cash flow from changes in working capital	-36	-9	9	-53	-90
Cash flow from operating activities	24	60	142	90	222
Investments in non-current assets	-59	-91	-121	-115	-354
Acquisition of subsidiaries		-136		-136	-137
Investments in non-current financial assets	0		-1	-47	-47
Cash flow from investing activities	-59	-227	-1222	-298	-239
Loan repayments	-27	-40	-21	-40	-5 /
Loan raised	23		61		207
Amortisation of lease liabilities	-2	-2	-5	-6	-8
Interest paid and other financing costs	-24	-19	-39	-30	-62
Net payment to blocked accounts					-1
Dividend to the parent company shareholders	-51	-44	-51	-44	-44
Repurchase of own shares	-49		-97		-24
Cash flow from financing activities	નીસ્પ	-106	-157	-120	11
Cash flow for the period	-165	-2713	-137	-3.29	-306
Cash and cash equivalents at the beginning of the
period	978	1,179	917	1,220	1,220
Exchange rate difference in cash and cash equiva-
lents	-9	40	24	55	3
Cash and cash equivalents at the end of the pe- riod	:304	946	804	946	917
Interest-bearing liabilities at the end of the period (excl. lease liabilities)	1,191	1,006	1,191	1,006	1,129
Blocked cash at the end of the period	-29	-29	-29	-29	-29
Net debt Note 6	358	32	358	32	183

Group equity

	2024	2023	2023
(Condensed, amounts rounded to the nearest MSEK)	30 Jun	30 Jun	31 Dec
Opening balance	2,206	1,616	1,616
Profit/loss for the period	77	88	200
Other comprehensive income for the period	4	140	127
Non-controlling interests arising from the acquisition of sub-
sidiaries	0	330	331
Repurchase of own shares	-97		-24
Bonus issue	0
Allocation to other contributed capital through cancellation of
own shares	0
Dividend to the parent company shareholders	-51	-44	-44
Closing balance	2,138	2,129	2,206

Key performance indicators for the group

	2024	2023	2024	2023	2023
	Q2	Q2	6 mon	6 mon	FY
Operational key performance
indicators
Installed capacity at the end of the period, MW	172.2	139.2	172.2	139.2	139.2
Own electricity production dur- ing the period, GWh	69.0	53.9	159.1	140.9	288.4
Number of employees at the end of the period	73	49	73	49	67
Financial key performance in-
dicators
Earnings per share, SEK™	0.76	0.85	1.90	2.01	4.65
EBITDA margin, %	51.4	61.9	57.2	66.3	56.5
Operating margin, %	32.1	47.9	40.2	52.0	43.9
Return on capital employed (EBIT), %	6.0	35.3	6.0	35.3	7.5
Return on equity, %	8.8	57.5	8.8	57.5	10.5
Equity, MSEK	2,138	2,129	2,138	2,129	2,206
Average equity, MSEK	2,134	1,439	2,134	1,439	1,911
Net debt, MSEK	358	32	358	32	183
Equity/assets ratio, %	56.7	59.5	56.7	59.5	57.9
Debt/equity ratio, times	0.1	0.0	0.1	0.0	0.1
Equity per share, SEK	43	41	43	41	43
Adjusted equity per share, SEK	59	63	59	63	58
No. of shares at the end of the period, excl. treasury shares	41,674,088	44,440,041	41,674,088	44,440,041	43,875,133
Average number of shares, excl. treasury shares	42,215,093	44,440,041	42,774,611	44,440,041	44,157,587

1) earnings per share.

(Amounts rounded to the nearest	2024	2023	2024	2023	2023
MSEK)	Q2	Q2	6 mon	6 mon	FY
Electricity	39	50	109	132	238
Certificates and guarantees of origin	1	ー	2	O
Development	49	50	78	67	224
Services	12	ത	24	17	40
Net sales	101	110	213	217	503

NOTE 1 · NET SALES

Net sales include i) income from electricity (the sale of generated electricity, and gains and losses from electricity and currency derivatives attributable to the hedged electricity production), ii) earned and sold electricity certificates and guarantees of origin, and iii) development income from projects sold and compensation for development costs and iv) asset management income. The classification is based on an assessment of the nature of the amount, timing and uncertainty surrounding income and cash flows. Income from electricity, income from electricity certificates and guarantees of origin are generated by the renewable electricity production owned by the Group, which are recognised in the Production segment. Income from development is mainly generated through the company's project portfolio and are recognised in the Development segment. Income from services is mainly generated through construction project management and asset management of renewable en-ergy production and are recognised in the Solutions segment.

Group segment reporting

The division of segment reporting is based on the Group's products and services, meaning the grouping of operations. The segment Development, develops, constructs, and sells renewable energy projects. Production comprises the group's ownership renewable energy assets. Solutions offers services in the form of construction project management and asset management for renewable energy production as well as other services. The Unallocated revenue/expenses pertains to the Group's shared expenses.

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	unallo-
	Develop- cated
Quarter 2		ment	Production Solutions rev./exp. Eliminations			Group
(Amounts rounded to the nearest MSEK)	Q2 2024	Q2 2023	Q 2 2024	Q2 2023	Q2 2024	Q 2 2023	Q2 2024	Q2 2023	Q2 2024	Q2 2023	Q2 2024	Q2 2023
Net sales, external	51	50	38	51	12	9					101	110
Net sales, internal	-			-	1	1			-1	-1
Other operating income	1	0	0	1	0	0	0	0			2	1
Total income	52	50	38	52	14	10	0	0	-1	-1	103	111
Capitalised work on own account	7	4								0	7	3
Operating expenses	-25	-12	-15	-16	-10	-9	-7	-9	1	1	-57	-46
EBIT before depr./imp. (EBITDA)	33	42	23	36	3	O	-7	-9			53	69
Depreciation/impair Note 2	-1	0	-18	-15		0	-1	-1			-20	-16
Operating profit/loss (EBIT)	33	42	5	21	3	O	-8	-10			33	53
Net financial items	-16	-13	7	-15	0	0	7	11			-3	-17
Profit/loss before tax (EBT)	16	29	12	6	3	O	-1	1			30	36
Intangible and tangible fixed assets (incl.leasing)	938	1,0006	1,431	1,031	0	-	7	7			2,376 2,044

NOTE 2 . DEPRECIATION AND IMPAIRMENT OF NON-CURRENT ASSETS

Depreciation and impair- ment	-1 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------			0 - -18 - 15 - 15 - 1 - 1 - 1 - 1 - 1 - 1 - 1		- -20 -	-16
Impairment and reversal of impairment
Depreciation/amortisation				-1			-16

Group segment reporting

							Unallo-
6 months		Develop- Production ment			cated Solutions rev./exp.				Eliminations		Group
(Amounts rounded to the nearest MSEK)	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
Net sales, external	83	67	105	132	24	17					213	217
Net sales, internal					2	2			-2	-2
Other operating income	1	0	1	1	1	0	0	0			3	2
Total income	84	67	106	134	27	20	O	0	-2	-2	216	219
Capitalised work on own ac- count	12	5			0				0	0	12	5
Operating expenses	-42	-20	-25	-26	-21	-20	-18	-15	2	2	-104	-79
EBIT before depr./imp. (EBITDA)	54	53	81	107	7	0	-18	-15			123	145
Depreciation/impair Note 3	-1	0	-34	-30		0	-2	-2			-37	-31
Operating profit/loss (EBIT)	52	53	48	78	7	0	-20	-16			87	114
Net financial items	-29	-20	-1	-22	0	0	20	16			-10	-26
Profit/loss before tax (EBT)	24	33	47	55	7	O	O	0			77	88
Intangible and tangible fixed assets (incl.leasing)	938	1,0006	1,431	1,031	0	-	7	7			2,376 2,044

NOTE 3 · DEPRECIATION AND IMPAIRMENT OF NON-CURRENT ASSETS

Depreciation/amortisation						-1	-31
Impairment and reversal of impairment
Depreciation and impair- ment	-1 -	0 -34 -30 -		------------------------------------------------------------------------------------------------------------------------------------------------------------------------------		- -37	-31

ം വടക

NOTE 4 • PROFIT/LOSS FROM FINANCIAL ITEMS

(Amounts rounded to the nearest	2024	2023	2024	2023	2023
MSEK)	Q2	Q2	6 mon	6 mon	FY
Interest income
Loans and receivables	10	4	25	7	38
Interest expenses
Lease liabilities	-1	-1	-2	-1	-3
Loans	-6	-4	-9	-7	-14
Bond loan	-12	-12	-24	-22	-46
Other financial items
Exchange rate differences revaluation
of loans/bond	18	-45	-27	-57	13
Other financial items	-1	-2	-2	-3	-6
Other exchange rate differences	-11	41	29	58	-4
Total	-3	-17	-10	-26	-23

NOTE 5 • FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value hierarchy

The financial instruments at fair value reported in the group's statement of financial position comprise derivative instruments. The derivatives comprise electricity futures, interest rate swaps and currency futures and are primarily used for hedging purposes. The valuation at fair value of derivative instruments belongs to Level 2 in the fair value hierarchy.

	2024	2023	2023
(Amounts rounded to the nearest MSEK)	30 Jun	30 Jun	31 Dec
Assets
Derivatives held for hedging purposes
- Derivative assets	44	74	58
Liabilities
Derivatives held for hedging purposes
- Derivative liabilities		-3

NOTE 6 • NET DEBT

	2024	2023	2023
(Amounts rounded to the nearest MSEK)	30 Jun	30 Jun	31 Dec
Non-current liabilities	1,490	1,313	1,425
- of which interest-bearing non-current liabilities (excl. lease liabilities)	1,136	978	1,075
Current liabilities	144	138	176
- of which interest-bearing current liabilities (excl. lease liabilities)	55	28	53
Long and short term interest-bearing debt liabilities (excl. lease liabilities)	1,191	1,006	1,129
Cash and cash equivalents at the end of the period	-804	-946	-917
Blocked cash at the end of the period	-29	-29	-29
Net debt	358	32	183

Lease liabilities amounted to MSEK 66 (64) on June 30, 2024.

ഷം arise

Parent company income statement

	2024	2023	2024	2023	2023
(Amounts rounded to the nearest MSEK)	Q2	Q 2	6 mon	6 mon	FY
Electricity, certificates and guarantees of origin	O		1	O	O
Development and services	18	11	32	21	47
Other operating income	O	0	1	0	1
Total income	18	11	33	21	48
Capitalised work on own account	1	1	2	2	4
Purchases of electricity, certificates and guarantees of origin	0	0	0	0	0
Cost of sold projects and asset manage- ment		-2		- Д	-8
Personnel costs	-17	-14	-31	-27	-71
Other external expenses	-14	-8	-23	-17	-32
Other operating expenses	0	1	0	1	-2
Operating profit/loss before deprecia- tion (EBITDA)	-11	-12	-18	-24	-61
Depreciation and imp. of non-current as- sets	0	0	O	O	-1
Operating profit/loss (EBIT)	-11	-12	-19	-25	-62
Profit/loss from financial items Note 1	1	-3	12	-14	787
Profit/loss after financial items	-10	-16	-7	-39	725
Group contributions					90
Profit/loss before tax	-10	-16	- /	-39	815
Tax on profit/loss for the period
Profit/loss for the period	-10	-16	- /	-39	815

Parent company balance sheet

	2024	2023	2023
(Condensed, amounts rounded to the nearest MSEK)	30 Jun	30 Jun	31 Dec
Intangible assets	30	30	30
Property, plant and equipment	38	49	33
Non-current financial assets	1,642	1,476	1,568
Total non-current assets	1,710	1,554	1,631
Other current assets	54	05	83
Cash and cash equivalents	535	213	632
Total current assets	5.89	308	714
TOTAL ASSETS	2,299	1,863	2,345
Restricted equity	4	4	4
Non-restricted equity	1,357	681	1,511
Total equity	1,361	684	1,515
Non-current interest-bearing liabilities	564	583	549
Other non-current liabilities	205	213	200
Total non-current liabilities	768	795	749
Other current liabilities	170	383	81
Total current liabilities	170	383	81
TOTAL EQUITY AND LIABILITIES	2,299	1,863	2,345

Parent company equity

	2024	2023	2023
(Condensed, amounts rounded to the nearest MSEK)	30 Jun	30 Jun	31 Dec
Opening balance	1,515	768	768
Profit/loss for the period	-7	-39	815
Repurchase of own shares	-97		-24
Bonus issue	0
Allocation to share premium fund through cancellation of own shares	O
Dividend to shareholders	-51	-44	-44
Closing balance	1,361	684	1,515

NOTE 1 ・ PROFIT/LOSS FROM FINANCIAL ITEMS

	2024	2023	2024	2023	2023
(Amounts rounded to the nearest MSEK)	Q2	Q2	6 mon	6 mon	FY
Interest income
Intra-Group interest income	6	1	11	1	7
Other interest income	7	4	19	6	16
Interest expenses
Intra-Group interest expenses	-1	-3	-1	-4	-10
Bond loan	-12	-12	-24	-22	-46
Other financial items
Impairment of shares in subsidiaries					-5
Gain on divestment of subsidiaries	-	25		25	54
Dividend on participations in subsidiaries					776
Exchange rate differences revaluation of bond	8	-26	-13	-33	2
Other financial items	-1	-1	-1	-1	-3
Other exchange rate differences	-7	8	22	14	-4
Total	1	-3	12	-14	787

Definitions of key ratios

EBITDA margin

EBITDA as a percentage of total income.

Operating margin

EBIT as a percentage of total income.

Return on capital employed

Rolling 12-month EBIT as a percentage to average capital employed.

Return on equity

Rolling 12-month net profit as a percentage to average equity.

Equity per share

Equity attributable to the parent company shareholders divided by the average number of shares.

Adjusted equity per share, SEK

Equity per share, adjusted for the excess value in the group's production assets according to the most recent impairment test, calculated at the exchange rate on the balance sheet date.

Net financial items

Financial income less financial expenses.

Average equity

Rolling 12-month average equity.

Operating cash flow

Cash flow from operating activities after changes in working capital.

Net debt

Interest-bearing liabilities, excl. lease liabilities, less cash and blocked cash and cash equivalents.

Debt/equity ratio

Net debt as a percentage of equity.

Specific operating expenses, SEK per MWh

Operating expenses for electricity production divided by electricity production during the period.

Equity/assets ratio

Equity as a percentage of total assets.

Capital employed

Equity plus interest-bearing debt.

Earnings per share

Share of profit/loss after tax attributable to the parent company shareholders in relation to the average number of outstanding shares.

General information about key figures

In its reporting, Arise applies key ratios based om the company's accounting. The reason that these key ratios are applied in the reporting is that Arise believes that it makes it easier for external stakeholders to analyse the company's performance.

Rounding

Figures in this interim report have been rounded while calculations have been made without rounding. Hence, it can appear like certain tables and figures do not add up correctly.

% arise

Arise AB, Linjegatan 7, 302 50 Halmstad Telephone +46 (0) 10-450 71 00 |