Edda Wind AS — Investor Presentation 2023

Nov 14, 2023

Edda Wind ASA

Quarterly presentation, Q3 2023

eddawind.com

Disclaimer

Cautionary note regarding forward-looking statements

This presentation, prepared by Edda Wind ASA (the "Company"), may include forward-looking statements relating to the business, financial performance and results of the Edda Wind Group and/or the offshore wind industry. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. Any forward-looking statements contained in this presentation, including assumptions, opinions and views of the Company or cited from third party sources, reflect the current views with respect to future events and are subject to material risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its subsidiary undertakings or any such person's officers or employees provide any assurance as to the correctness of such forward-looking information and statements. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

Agenda

• Edda Wind in Brief
• Q3 2023 highlights

3

• Market
• Financials
• Summary Q&A 123456

Edda Wind In brief

Market leader in offshore wind (C/SOV)

Newbuilds prepared for zero emission

Established strong customer relationships Balanced contract portfolio

5 vessels in operation and 9 newbuilds

Low technology risk as fleet can serve all types of turbines

Attractive yard prices and delivery schedule

experience

~50 years

Offshore service

Offshore wind experience

~10

years

EUR 415m

Total backlog

By 2026

14

vessels

Flexible fleet strategy

Vessels on short term contract

Vessels on long term contract

Q3 2023 highlights

Q3 2023 highlights

Strong financial and operational growth

• Revenue of EUR 11.8m (+59% growth vs. Q3-22)
• EBITDA of EUR 4.8m (+241% growth vs. Q3-22)
• Profit of EUR 1.8m (+364% growth vs. Q3-22)
• First quarter with Edda Boreas in operation (long-term contract at Dogger Bank)
• Edda Nordri delivered from yard in September and will be ready for operations in Q4
• Subsequent events:
  • SiemensGamesa contract commenced beginning of October
  • Edda Passat commenced new short-term contract end of October
  • Taking title over C416 to secure delivery in Q1-24

Q3 2023: Edda Wind's best quarter and on track for further growth

First quarter with Edda Boreas on long-term contract at Dogger Bank

• The CSOV, Edda Boreas, commenced a 2+1 years contract for SSE Renewables at the Dogger Bank Wind Farm
• Built at Astilleros Gondán with Salt 0217 design and accommodation capacity for 120 people

Dogger Bank Wind Farm

• Offshore wind farm being developed in three phases Dogger Bank A, B and C – located between 130km and 190km from the north east coast of England
  • Collectively Dogger Bank A, B and C will become the world's largest offshore wind farm
  • In October 2023, Dogger Bank started producing electricity for the first time for British homes and businesses, marking a major milestone in the development of the offshore wind industry

Naming ceremony of Edda Nordri in September

• On 9 September Edda Wind celebrated the naming ceremony of the CSOV "Edda Nordri "
• Edda Nordri was delivered by Gondan Shipbuilders 7 September and will be ready for operations in Q4 2023
  • Edda Nordri will commence operations for Simens Gamesa (frontrunner) in Q4 -2023 and Vestas in 2024 -2026
• Number three of six sister vessels to be delivered by Gondan (following Edda Breeze and Edda Boreas) 1
• Edda Nordri can accommodate up to 120 persons in total

Following the 'Edda Nordri' celebration, the C492 was officially and successfully launched on 15 September at the same yard

9

1) Sister vessels under construction: C492, C503 and C504

Favorable demand outlook for C/SOV

• Favorable demand outlook for C/SOV despite announced delays and setbacks within the supply chain
• Delays and unscheduled work at the wind farms result in additional work for CSOVs
• Limited amount of available vessels, including vessels under construction in the coming years, and vessel demand is estimated to significantly outgrow supply
• At present, conventional oil & gas vessels (Tier 2/3) are bridging the demand gap in the market. However, with the shift towards Tier 1 preference and the return of Tier 2/3 vessels to the oil & gas sector, it's anticipated that C/SOVs will be required to fill this gap
• High seasonal dayrates observed for the CSOV market

Market fundamentals continue to improve, supported by underlying growth and increased vessel scarcity

Strong growth expected in # turbines…

…resulting in high demand for newbuilds (C/SOVs)1

…and strong outlook for C/SOV economics

Source: Clarksons Offshore & Renewables, Fearnley Offshore Supply 1) Figures excluding US and China

Edda Wind is the market leader in offshore wind (C/SOV)

Eight of fourteen vessels currently contracted – increased balance to "play the market right"

Vessel	Type	Client	Start1	End	Option	Location	'23	'24	'25	'26	'27	'28	'29	'30	'31	'32
Edda Passat	SOV		Oct-23	Q4-23		Arcadis Ost, Germany
Edda Mistral	SOV		Sep-18	Sept-24	4x1 year	Hornsea One wind farm, UK
Edda Brint	SOV		Mar-23	May-37	Up to 1,6 years	Seagreen wind farm, UK
C416	SOV		Q4-23	Q3-28		Saint-Brieuc, wind farm, France
Edda Breeze	CSOV		Apr-21	Apr-32	Up to 2,6 years	BARD Offshore 1 wind farm, Germany
Edda Boreas	CSOV		Q3-23	Q2-25	1 year	Dogger Bank wind farms, UK
Edda Nordri	CSOV		Q1-24	Q1-26	< 1 year	Northern Europe
C492	CSOV		Q2-25	Q4-25	< 1 year	Northern Europe
C503	CSOV		Q4-24
C504	CSOV		Q2-25
NB965	CSOV		Q1-25
NB966	CSOV		Q1-25
NB967	CSOV		Q2-25
NB968	CSOV		Q1-26

Under construction Firm contract Option period Frontrunner

Financials

Key financials

Income statement

EUR thousand (unaudited)	Q3 2023	Q3 2022	9M 2023	9M 2023	Full year
					2022
Freight income	11,198	6,810	26,111	20,226	26,930
Other operating income	633	622	1,857	866	1,496
Total operating income	11,831	7,432	27,968	21,092	28,425
Payroll and remuneration	(4,864)	(2,518)	(11,106)	(6,407)	(8,609)
Other operating expenses	(2,114)	(3,490)	(8,618)	(9,524)	(13,248)
Total operating expenses	(6,978)	(6,008)	(19,724)	(15,931)	(21,856)
Operating profit before depreciation	4,853	1,424	8,244	5,162	6,569
Depreciation	(2,306)	(794)	(4,861)	(2,413)	(3,195)
Operating profit	2,547	630	3,383	2,749	3,374
Financial income and expenses
Financial income	456	47	1,285	193	386
Financial expense	(1,666)	(461)	(3,627)	(1,432)	(1,890)
Net currency gains/(losses)	508	182	173	238	64
Financial income/(expense)	(702)	(232)	(2,169)	(1,001)	(1,440)
Profit/(loss) before tax	1,845	398	1,214	1,748	1,935
Tax (income)/expense	-	-	-	-	-
Profit/(loss) for the period	1,845	398	1,214	1,748	1,935

Comments Q3 2023

• Five vessels in operation during Q3- 2023, impacting income and crew/opex cost
• EUR 35m LTM revenue
• EBITDA margin of 41% (vs. 19% in Q3 2022)

Key financials Balance sheet

ASSETS (EUR thousand)	30.09.23	30.09.22	31.12.22
Non-current assets
Vessels	223,756	67,694	66,714
Newbuildings	226,925	195,115	223,082
Other non-current assets	8,794	2,418	7,050
Machinery and equipment	143	-	7
Total non-current assets	459,618	265,227	296,853
Current assets
Account receivables	10,034	4,440	3,926
Other current receivables	723	1,078	1,153
Other current assets	-	6,702	4,114
Financial derivatives	-	97	71
Cash and cash equivalents	34,674	60,217	45,021
Total current assets	45,431	72,534	54,285
Total assets	505,049	337,762	351,138

EQUITY AND LIABILITIES (EUR thousand)	30.09.23	30.09.22	31.12.22
Equity
Share capital	1,071	644	644
Share premium	220,732	116,128	116,128
Other equity	68,329	66,822	66,908
Total equity	290,132	183,594	183,680
Non-current liabilities
Non-current interest-bearing debt	194,647	133,197	146,013
Total non-current liabilities	194,647	133,197	146,013
Current liabilities
Account payables	2,727	8,140	3,017
Public duties payable	75	91	85
Current interest-bearing debt	15,331	10,953	10,951
Other current liabilities	2,137	1,786	7,392
Total current liabilities	20,270	20,970	21,446
Total equity and liabilities	505,049	337,762	351,138

Comments Q3 2023

• Cash reduction following yard instalments, including 2x EUR 12.6m payments to Vard shipyard
• Equity ratio of 57.4%1

Highly attractive backlog and financial profile

Total backlog of EUR 415m in place (firm backlog of EUR 314m)1

Revenue backlog per client1

14m

1) The total revenue backlog comprises firm contracts as well as contractual options. The «firm» backlog are contracts which have been entered into with customers, and these contracts can be cancelled by customers under given circumstances and are in general subject to certain terms and conditions. "Options" are options to extend firms contracts, and such options can be extended at the discretion of the respective customer. As such, the "option" backlog is subject to such extensions. The backlog includes the contribution from vessel day rates as well as victualling revenue for certain additional services onboard. This definition applies to all references to backlog in this presentation. Numbers as of Q3 2023

2037

108m

Edda Wind – fleet contract status

Vessel availability well matched to CSOV demand and supply curves

Attractive vessel financing

Key debt financing information

Abt. EUR 110 mil. Senior Secured Term Loan Facility

• − Semi-annual amortisation 12-year profile
• − GBP 29.4m for Passat/Mistral
  • − ECA tranche GBP 15.6m
  • − Commercial tranche GBP 13.8m with GBP 7.1m balloon Dec-26/Jan-27
• − EUR 55.2m pre- and postdelivery financing C416/C490
• − Contract tranche up to EUR 13.8m
  • − Repayment over firm contract period, latest Dec-26/Jan-27

EUR 38.0 mil. Private Placement

− Semi-annual amortization based on annuity style profile with balloon payment at maturity in Sep '31

GBP 36.0 mil. Private Placement

− Quarterly amortization based on annuity style profile with balloon payment at maturity in Apr '37

EUR 120 mil. green loan facility

• − Pre-and post delivery financing of C491, C492 and C503
• − ECA facility of EUR 54.8m
• − Commercial facility 45.2m
• − Credit revolving facility of total EUR 20m

Interest

• − Blend of fixed and floating interest rate
• − Average all-in fixed interest cost incl. CIRR of ~3.2%1

Debt amortization schedule (2) EURm

1) Edda Wind has fixed interest on ~75% of its interest-bearing debt

2) Based on renewal of EUR 39.1mill guarantee arrangements in 2027

19

72

Edda Wind's fleet and organisational growth is on track

Thank you

eddawind.com

23

24

Investor Relations

Questions & comments to:

Mr. Kenneth Walland, CEO Tel: +47 916 93 418 E-mail: kenneth.walland@eddawind.com Mr. Tom Johan Austrheim, CFO Tel: +47 982 09 873 E-mail: tom.johan.austrheim@eddawind.com Mr. Lars Stubhaug, VP Finance Tel: +47 917 42 725 E-mail: lars.stubhaug@eddawind.com