Edda Wind AS — Investor Presentation 2023

Aug 17, 2023

Edda Wind ASA

Quarterly presentation, Q2 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.

Edda Wind In brief

Pure play market leader in offshore wind

Newbuilds prepared for zero emission

Established strong customer relationships Balanced contract portfolio

5 vessels in operation and 9 newbuilds

Attractive yard prices and delivery schedule

Low technology risk as vessels can serve all types of turbines

Highlights Q2 2023

Market fundamentals continue to improve

• − Favorable demand outlook for C/SOV despite announced delays and setbacks within the supply chain
• − Oil & gas sector continues to extract tonnage, including purpose built CSOVs
• − Increased focus and accelerated pace for the renewable energy transition
• − High seasonal dayrates observed for the CSOV market

Edda Wind established as the undisputed market leader

• − First quarter with Edda Brint and Edda Breeze on long-term contracts
• − 33% growth in fleet days versus Q2 22
• − Revenue EUR 9,2 mill (+34% growth Q2 22)
• − EBITDA EUR 2,7 mill (+48% versus Q2 22)
• − Profit/loss EUR 0,2 mill (EUR 0,6 mill Q2 22)
• − Edda Boreas commenced a 2+1 year contract beginning of July
• − 100 % fleet onhire

Newbuilds ordered at Vard shipyard

4 firm contracts

• − 4 firm newbuilding contracts
  • − Hull.no 965 and 966 will be built in Norway/Romania
  • − Hull.no 967 and 968 will be built in Vietnam

Delivery

− Attractive delivery schedule where first two newbuilds will be ready for operation in Q1 2025, thereafter Q2 -2025 and Q1 -2026

Zero emission

− All newbuilds will be prepared for zero -emission with LOHC and Methanol Ready

Building prices

• − Original yard price of EUR 63mill
• − Ready for sea cost of EUR 67 mill

Terms

− 5x20% payment terms

Norwegian content

− Norwegian content approx. 55% -75% of ready for sea cost

Right capabilities to target the global wind market

Uniquely positioned with competitive advantages along several dimensions

Focused company with the right set of capabilities

Dedicated state-of-the-art offshore wind vessels

Sustainability at the very centre of the strategy

Growing portfolio of clients with large potential

Extensive experience and resource pool

Position across the value chain in a global market

Operations & Maintenance

Long-term contracts supporting continuous O&M work throughout the life of wind farms

Auxiliary wind services

Already actively considering opportunities in all key offshore wind hubs

Asia

Europe

6 contracts won, active dialogues with the clients

Active dialogues with new and existing clients/partners Active dialogues with new and existing partners

US

Shorter-/mid-term contracts supporting commissioning & installation work on

Commissioning & Installation

offshore wind farms

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

Highly attractive backlog and financial profile

Total backlog of EUR 410m in place (firm backlog of EUR 321m)1

	EUR 23m 2H 2023 firm revenues1
Backlog		EURm1
Firm period		321
Option period		89
Total		410
6	9	14

contracted vessels operating in 2023

Revenue backlog per client1

Edda Wind ASA: Q2 2023 9 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 Q2-2023

Six of fourteen firm vessels on contract – increased balance to "play the market right"

Vessel	Type	Client	Start	End	Option	Location	'23	'24	'25	'26	'27	'28	'29	'30	'31	'32
Edda Passat	SOV		Mar-18	Oct-23		Race Bank wind farm, UK
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
C491	CSOV		Q4-23
C492	CSOV		Q2-24
C503	CSOV		Q4-24
C504	CSOV		Q2-25
NB965	CSOV		Q1-25
NB966	CSOV		Q1-25
NB967	CSOV		Q2-25
NB968	CSOV		Q1-26
Options
						Under construction				Firm contract			Option period			Frontrunner

Edda Wind – fleet contract status

Vessel availability well matched to CSOV demand and supply curves

Delivering on a broad scope of work for its clients

Edda Wind works actively with clients and yards to stay ahead by delivering the features of tomorrow

Focused design philosophy Safely delivering all

Personnel- and cargo transfers in harsh environments

Minimal manual handling of cargo and goods

Efficient workflow and deck utilization for technicians

Level-free environment / stepless approach

High comfort and welfare – single outside cabins for all in the SOVs, 86/101 cabins in the CSOVs

Fuel efficient and low emission – zero-emission ready

Facilities and accommodation

• Client accommodation
• Communication, internet & infotainment
• Personnel tracking system
• Catering, laundry and housekeeping
• Office, change room and hospital facilities
• Helicopter landing deck / Heli winch zone

Services and operations

Motion compensated personnel transfer Work boat incl. ship-to-shore capability Motion compensated cargo handling (on sea) Crew transfer landing & refuelling capability Warehouse, workshop and garbage facilities Daily reporting

Prepared for zero-emission

Several advantages with Liquified Organic Hydrogen Carrier (LOHC)

Key financials

Income statement

EUR thousand (unaudited)	Q2 2023	Q2 2022	H1 2023	H1 2022	Full year 2022
Freight income	8,678	6,772	14,913	13,416	26,930
Other operating income	566	120	1,224	245	1,496
Total operating income	9,244	6,892	16,137	13,660	28,425
Payroll and remuneration	(4,279)	(1,975)	(6,242)	(3,889)	(8,609)
Other operating expenses	(2,247)	(3,084)	(6,504)	(6,034)	(13,248)
Total operating expenses	(6,526)	(5,059)	(12,746)	(9,923)	(21,856)
Operating profit before depreciation	2,718	1,833	3,391	3,737	6,569
Depreciation	(1,782)	(802)	(2,555)	(1,618)	(3,195)
Operating profit	936	1,031	836	2,119	3,374
Financial income and expenses
Financial income	587	61	829	145	386
Financial expense	(1,222)	(483)	(1,961)	(971)	(1,890)
Net currency gains/(losses)	(500)	(42)	(335)	56	64
Financial income/(expense)	(1,135)	(464)	(1,467)	(769)	(1,440)
Profit/(loss) before tax	(199)	567	(631)	1,350	1,935

2167 1975 1660 380 1904 1833 1424 1408 557 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 2718

Comments Q2 2023

• − Growth in fleet impacting income and crew/opex cost
• ⁻ Reduced hire for Edda Brint during commissioning of gangway abt EUR 540k during 2Q – now fully commissioned
• − Scheduled engine overhaul (Passat/Mistral) during the quarter abt. EUR 250k
• ⁻ Non-recurring cost mainly related to delivery/start-up of Edda Brint/Edda Breeze abt. EUR 350k

Operating income

Key financials Balance sheet

ASSETS (EUR 1000)	30.06.23	30.06.22	31.12.22
Non-current assets
Vessels	171,204	70,126	66,714
Newbuildings	222,794	176,167	223,082
Other non-current assets	8,937	-	7,050
Machinery and equipment	-	-	7
Total non-current assets	402,935	246,293	296,853
Current assets
Account receivables	5,343	3.975	3,926
Other current receivables	1,703	799	1,153
Other current assets	-	6,466	4,114
Financial derivatives	-	50	71
Cash and cash equivalents	70,449	74,702	45,021
Total current assets	77,495	85,992	54,285
Total assets	480,430	332,286	351,138

EQUITY AND LIABILITIES (EUR 1000)	30.06.23	30.06.22	31.12.22
Equity
Share capital	1,071	644	644
Share premium	220,732	116,128	116,128
Other equity	66,917	67,548	66,908
Total equity	288,720	184,320	183,680
Non-current liabilities
Non-current interest-bearing debt	171,311	134,629	146,013
Total non-current liabilities	171,311	134,629	146,013
Current liabilities
Account payables	2,734	2,740	3,017
Public duties payable	239	100	85
Current interest-bearing debt	14,523	8,919	10,951
Other current liabilities	2,901	1,553	7,392
Total current liabilities	20,397	13,335	21,446
Total equity and liabilities	480,430	332,286	351,138

Comments Q2 2023

− 60,1 % equity following capital increase in March 2023

Attractive financing in place for contracted vessels

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
  • − EUR 39.1m balloon payment Dec-26/Jan-27
• − Contract tranche up to EUR 13.8m
  • − Repayment over firm contract period, latest Dec-26/Jan-27

EUR 38.0m Private Placement

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

GBP 36.0m 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 54.8 mill
• − Commercial facility 45.2 mill
• − Credit revolving facility of total EUR 20 mill

Interest

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

Debt and interest hedging

Significant share of debt is fixed long-term at attractive all-in rate through Private Placement and CIRR/-options

Summary

01

Leading offshore wind service vessel company with a proven track-record

02 State-of-the-art fleet at fixed and attractive yard prices

03

Strong backlog of EUR 410m supporting cash flow visibility and dividend capacity

04

Attractive and competitive newbuild program – all newbuilds prepared for zero-emission operations

05

Sharply increasing demand for top tier C/SOVs

06

Experienced management supported by reputable owners

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

Thank you

eddawind.com

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