Enefit Green

Investor Presentation • Nov 2, 2023

ENEFIT GREEN Q3 202 3 Interim results presentation

1

Results are presented by:

Aavo Kärmas CEO

Veiko Räim CFO

Decline in electricity prices climaxed in Q3

Drivers:

• Prices peaked a year ago
• Over 80% lower natural gas prices
• Strong hydro power supply
• Lower consumption

Regulatory developments Enefit Green Q3 2023 interim results presentation ⁴

European Parliament approved changes in Renewable Energy Directive

European Commission has published European Wind Power Package to accelerate wind power deployment

EU energy ministers reached agreement on principles of the energy market reform including usage of CfDs

The government has started with amendments of several laws: environmental fees, acceleration of renewable energy deployment, changes in fuel reporting in electricity production, intent to prepare the climate act

Competition Authority organised a public consultation to set new grid tariffs for Elering, the Estonian TSO

First EU international renewable energy procurement concluded with an agreement with Luxembourg Wind energy price discount reached an all time high of 61% in September

TSO has temporarily suspended issuance of technical conditions for grid connections to electricity producers in case such connections would demand reconstruction of 330kV grid

The government supplemented a regulation, which gives the Latvenergo and the Latvian State Forest Management joint venture Latvijas Vēja Parki the exclusive right to select suitable locations for wind farms

European Commission supports construction of a 700 MW offshore wind farm in Lithuania with €193m

The government plans to introduce a 0.5% land tax rate for wind energy producers until the end of 2031 with the draft real estate tax law

From July, renewable energy producers will also receive certificates of origin for electricity produced during testing

An amendment to the Energy Act allows solar panels or wind generators to be added to existing power plants, reducing the cost of building new plants

With an amendment to the Planning Act, the construction of solar farms on class IV lands will be prohibited from 2025 onwards with a faster permitting procedure

Average wind conditions during Q3

Average recorded wind speed in Enefit Green wind farms, m/s

Availability challenges in Lithuania

Path towards 4X growth

Operating Under construction

* Following projects have been categorized as operating: Purtse WF (21MW), Purtse PV (32MW), Zambrow PV (9MW). Grid tests are being carried out in Purtse. In Zambrow grid tests are completed, waiting for official production permit.

** COD – Commercial Operating Date

NB! Development projects are in continuous change.

• * Various onshore wind and solar farm developments that are not expected to get final investment decision before 2024.
• ** Also known as Hiiumaa offshore wind farm

Q3 2023 Key highlights

180 mln € New 12-year loan facility from EIB

+53 GWh production from new wind and solar farms

9m 2023 highlights

support + revenues from sale of guarantees of origin - day-ahead and intraday purchases on Nord Pool - balancing energy purchases) / production

Summary of Q3 electricity prices

Power prices €/MWh	Q3 2022	Q2 2023	Q3 2023
Core markets average*	317.7	78.7	97.8
Price of electricity sold to the market	285.2	63.7	82.2
PPA (until Q4 22 incl FiT) sale price	72.1	83.5	80.9
Realized purchase price	337.7	83.8	116.5
Implied captured price**	205.1	89.9	84.9

* Production weighted average market price on group's core markets

** (electricity sales revenue + renewable energy support and efficient cogeneration support + revenues from sale of guarantees of origin - day-ahead and intraday purchases on Nord Pool - balancing energy purchases) / production

Production Purchases Sales via PPA (incl FiT) Sales to market

Implied captured price -59%

• Core markets average price -69%
• Increased volume of electricity purchases (6.8 times)
• Price of electricity sold to the market -71%
• Realised purchase price -65%
• PPA/FiT average price +12%

Operating income impacted by low electricity prices

Operating income by segment, €m

Wind Electricity production +31% Implied captured price* of the segment was 78.1 €/MWh (-58%) CHP Lower pellet sales volume (-56%) Implied captured price* 127.5 €/MWh (-61%) Solar Electricity production +128% due to new solar farms Exit from "turn-key" solar services business in Q3 2022 Operating income €44.5m -26% * (electricity sales revenue + renewable energy support and efficient cogeneration support + revenues from sale of guarantees of origin - day-ahead and intraday purchases on Nord Pool - balancing energy purchases) / production

EBITDA decreased due to lower electricity prices

EBITDA €15.9m -51%

Electricity price net impact -€21.1m

Higher PPA price did not compensate the impact of the decline in market prices

Sold / purchased quantities net impact +€4.3m

Lower than expected and variable production increased both electricity purchase and sale quantities

Impact of fixed expenses -€2.2m

Mainly increased labor and research/consultation costs

Other cogeneration segment result +€1.9m:

Higher revenue from waste gate fee and lower pellet own consumption electricity expenses due to lower power market prices

Wind energy segment: lower electricity prices and increased power purchase costs had negative impact on profitability even with higher production

Q1

9.9

37.9

78

Q3 2022 Q3 2023

EBITDA €10.1m -57%

• Higher production volumes in Lithuania and Estonia due to the addition of new wind farms
• Lower implied captured electricity price*
• Power purchase costs
• Maintenance and consultations costs

Cogeneration segment: lower electricity price decreased profitability

• Higher electricity and heat energy production
• Implied captured electricity price driven by market prices

Solar segment: production from new solar farms improved operating income despite lower electricity prices

Solar services revenues Operating farms' revenues

EBITDA €1.5m

• 128% higher production due to new solar farms
• Lower implied captured electricity price*
• Higher salaries and land expenses

Q3 2023 net profit impacted by lower electricity prices

Return on invested capital and return on equity, %

Net profit €5.0m -78%
Net finance income Increased interest income Interest expense increase of €3.6m, but neutral impact on profit due to 98% capitalization rate)
Corporate income tax expenses Increased by €0.3m
Net profit Low electricity market prices Increased power purchased costs
Return on equity 10.3%
Returns Return on invested capital declined due to lower EBIT and growth in invested capital Return on equity declined due to lower net profit

€87.3m of investments in Q3 2023

Investments €87.3m +10%

Operating cash flow

Lower support than previously to continuing investments due to lower electricity prices

Investments

• Q3 2023 investments in the amount of €87.3m, primarily into development investments:
  • Kelme wind farm €45.4m
  • Sopi-Tootsi wind farm €18.9m
  • Tolpanvaara wind farm €14.8m
  • Sopi solar farm €1.9m

Leverage is rising ahead of completion of new capacities

Loans repaymentschedule, €m

Overview of power portfolio hedging

Core markets electricity price forecast (consensus)**, €/MWh

Power Purchase Agreements***

As of 30 September 2023, outstanding volume of PPAs was 9,899 GWh at an average price of 71.5 €/MWh

2023-2027

• Outstanding PPA volume in Q4 2023 is 273 GWh with an average price of 91.2 €/MWh
• Outstanding volume of PPAs for years 2024-2027 is 5,948 GWh (54% of expected production) with an average price of 66.5 €/MWh

2028-2033

Production after 2027 fixed with PPAs in the amount of 3,677 GWh with average price of 78.1 €/MWh

^* Price floor – state support in a form of a price floor received from reverse auction at price level of 34.9 €/MWh (maximum 20 €/MWh) with a duration of 12 years

^** 2024E – 2033E electricity price forecasts are calculated by averaging SKM & Volue forecasts (SKM Market Predictor Long-Term Power Outlook - August 2023, Volue Long Term Price Forecast - September 2023). These are nominaal prices assuming constant 2% rate of inflation

^*** Majority of signed PPAs are monthly profiled baseload PPAs. Prices shown are PPA contractual prices.

9m 2023 Summary

• Strong electricity prices decline y-o-y, which culminated in Q3
• Incident in Akmene wind farm in May, operations stopped, gradual restart from September
• 74MW Sopi solar farm FID in Q2
• Construction of 5 wind and 3 solar farms continues
• €254m total capex YTD
• New assets yield 1/5 of production (Q3)
• €505m of credit facilities raised YTD

Total renewable capacity under construction

608 MW

+117% additional capacity when completed

Aavo Kärmas, CEO Veiko Räim, CFO

Appendix

Condensed consolidated interim financial statements Q3 2023

Condensed consolidated interim income statement

€ thousand	Q3 2023	Q3 2022	9M 2023	9M 2022
Revenue	39,259	57,254	144,600	156,900
Renewable energy support and other operating income	5,233	3,011	18,562	17,363
Change in inventories of finished goods and work in progress	3,434	2,028	3,266	4,607
Raw materials, consumables and services used	(26,011)	(24,969)	(71,386)	(55,468)
Payroll expenses	(2,634)	(2,029)	(8,025)	(6,641)
Depreciation, amortisation and impairment	(10,218)	(9,637)	(29,740)	(28,930)
Other operating expenses	(3,388)	(2,574)	(10,716)	(7,721)
OPERATING PROFIT	5,675	23,084	46,561	80,110
Finance income	747	468	2,345	718
Finance costs	(1,115)	(722)	(1,897)	(1,275)
Net finance income and costs	(368)	(255)	448	(558)
Profit from associates under the equity method	45	120	85	687
PROFIT BEFORE TAX	5,352	22,949	47,094	80,239
Income tax expense	(326)	0	(10,405)	(5,441)
PROFIT FOR THE PERIOD	5,026	22,949	36,689	74,798
Basic and diluted earnings per share
Weighted average number of shares, thousand	264,276	264,276	264,276	264,276
Basic earnings per share, €	0.02	0.09	0.14	0.28
Diluted earnings per share, €	0.02	0.09	0.14	0.28

Condensed consolidated statement of other comprehensive income

€ thousand	Q3 2023	Q3 2022	9M 2023	9M 2022
PROFIT FOR THE PERIOD	5,026	22,949	36,689	74,798
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Remeasurement of hedging instruments in cash flow hedges (incl. reclassifications to profit or loss)	662	7,193	1,202	13,717
Exchange differences on the translation of foreign operations	(349)	(436)	53	(680)
Other comprehensive income for the period	313	6,757	1,255	13,037
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	5,339	29,706	37,944	87,835

Condensed consolidated interim statement of financial position

€ thousand	30 September 2023	31 December 2022
ASSETS
Non-current assets
Property, plant and equipment	978,497	776,870
Intangible assets	60,275	60,382
Right-of-use assets	4,295	4,239
Prepayments for non-current assets	42,522	19,412
Deferred tax assets	1,379	1,321
Investments in associates	568	506
Derivative financial instruments	9,310	11,277
Non-current receivables	0	40
Total non-current assets	1,096,846	874,047
Current assets
Inventories	19,177	14,227
Trade and other receivables and prepayments	59,765	41,091
Cash and cash equivalents	25,731	131,456
Derivative financial instruments	4,473	3,349
Total current assets	109,146	190,123
Total assets	1,205,992	1,064,170

€ thousand	30 September 2023	31 December 2022
EQUITY
Equity and reserves attributable to shareholders of the parent
Share capital	264,276	264,276
Share premium	60,351	60,351
Statutory capital reserve	5,555	3,259
Other reserves	167,621	166,419
Foreign currency translation reserve	(709)	(762)
Retained earnings	204,613	225,190
Total equity	701,707	718,733
LIABILITIES
Non-current liabilities
Borrowings	334,639	255,755
Government grants	6,745	7,115
Non-derivative contract liability	18,086	18,086
Deferred tax liabilities	12,445	12,326
Other non-current liabilities	3,000	3,000
Provisions	8	9
Total non-current liabilities	374,923	296,291
Current liabilities
Borrowings	76,686	23,808
Trade and other payables	51,107	20,215
Provisions	2	2
Non-derivative contract liability	1,567	5,121
Total current liabilities	129,362	49,146
Total liabilities	504,285	345,437
Total equity and liabilities	1,205,992	1,064,170

Condensed consolidated interim statement of cash flows

€ thousand	Q3 2023	Q3 2022	9M 2023	9M 2022
Cash flows from operating activities
Cash generated from operations	18,977	36,827	77,321	105,742
Interest and loan fees paid	(2,999)	(845)	(7,136)	(1,842)
Interest received	127	6	645	12
Income tax paid	(9,970)	(4,716)	(11,175)	(6,217)
Net cash generated from operating activities	6,135	31,272	59,655	97,695
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets	(86,191)	(82,902)	(235,672)	(129,950)
Paid on acquisition of subsidiaries	0	0	(6,174)	0
Collection of finance lease receivables	1	0	1	0
Proceeds from sale of property, plant and equipment	0	0	0	3
Proceeds from sale of a business	0	5	0	724
Dividends from investments in financial assets	24	62	24	62
Net cash used in investing activities	(86,166)	(82,834)	(241,821)	(129,161)
Cash flows from financing activities
Proceeds from bank loans	70,000	130,000	160,000	170,000
Repayments of bank loans	(17,137)	(5,476)	(28,314)	(15,146)
Repayments of lease principal	(97)	(134)	(276)	(263)
Dividends paid	0	0	(54,969)	(39,906)
Net change in intragroup debt	0	38	0	38
Net cash generated from financing activities	52,766	124,428	76,441	114,723
Net cash flow	(27,265)	72,866	(105,725)	83,257
Cash and cash equivalents at the beginning of the period	52,996	90,845	131,456	80,454
Cash and cash equivalents at the end of the period	25,731	163,711	25,731	163,711
Change in cash and cash equivalents	(27,265)	72,866	(105,725)	83,257