Energeia AS

Investor Presentation • Nov 29, 2023

Energeia AS

Fearnley Securities

Annual Renewables & Clean-Tech Conference

29 November 2023

Agenda

1	Competitiveness & price harmonization
2	Energeia group overview
3	Industrial partnerships
4	9m 2023 revenues & EBITDA
5	Assets & resources
6	Netherlands activity & focus
7	Norway project development & portfolio
8	Utility scale PV power plant profitability
9	What to expect from 2024

29 November, 2023 Energeia © All rights reserved 2

Cost competitiveness & harmonization of power prices

2021 Germany LCOE by technology | EURc/kWh

LCOE minimum (EURc/kWh)

Source: Fraunhofer ISE; Levelized cost of energy analysis (2021)

Drivers for Solar PV + BESS cost competitiveness:

• Solar PV manufacturing costs down
• Battery manufacturing costs down
• Solar PV modules efficiency up
• Relative cost differential increased further since 2021

Geographical harmonization of power prices

Source: Nordpool (2023)

Grid interconnection harmonizes power prices:

• Norway transmission capacity to Europe increased from 25TWh to 78 TWh in 2022 (58% of power consumption).
• Norwegian power market is a EUR market.

History & focus

Energeia group overview

• Established 2010.
• Purchased, sold, operated and constructed Solar PV power plants since 2011.
• Operating an Agrivoltaic power plant in the Netherlands since 2020.
• Geographical business focus the Netherlands and Norway.
• Energy system installation and services operation in the Netherlands with 47 employees.
• Development of utility scale Solar PV power plants with BESS since 2020 in Norway in collaboration with industrial partners.
• 40 utility scale Solar PV + BESS projects in development in Norway. 20 projects under contract representing approx. 1 000 MWp/1.2 TWh.

Industrial partnerships

• Working together in seamless teams with open-book philosophy with industrial partners to develop and jointly own utility scale Solar PV power plants + BESS in Norway.

Eidsiva Group:

• Total assets NOK 50bn, revenues of NOK 11bn and EBITDA of NOK 4.3bn in 2022.
• 100% owner of power distribution company Elvia.
• 43.5% owner of Hafslund ECO producing 6.3 TWh of Hydropower.
• Investing and developing grid connected BESS systems.

Hydro Rein:

• Subsidiary of Norsk Hydro with mission to produce CO2 emission-free power from Solar PV and Wind.
• 1 700 MWp portfolio in operation and under construction.
• Macquarie group to invest and own 49% in JV with Norsk Hydro.

Company description

9m 2023 revenues & EBITDA

9m revenues 2022 & 2023 | NOKm 9m 2023 EBITDA | NOKm

9m 2023 vs. 9m 2022 YoY change

• Electricity sales; Price down by 49%, Volume down by 8%.
• Estimated FY'23 realized price above SDE+ contract of EUR 90 per MWh.
• Energy installation & services organic sales growth of 28%
• Management revenues reduced by 41%.

Cash profitability

• Running profitable business in power production & energy installation & services are funding project development costs in Norway & the Netherlands.

Assets & resources

		Assets & financing NOKm
Current assets	63	35	Short term debt
Cash	37	11	Payables
Receivables	16	4	Tax & duties
Inventories & other	10	20	Short term debt
Long-term assets	169	80	Long term debt
Power plants	106	72	Interest bearing debt
Assets in construction	8	8	Other long-term debt
Other lt. assets	12
Brand & Goodwill	43
		118	Equity
Total assets	233	233	Total financing

Asset base Sept. 2023

• 78% of asset base (NOK 180m) in operating business in the Netherlands.
• Interest bearing debt is for PV power plant. 1,26% fixed interest for duration of loan to 2038.
• Goodwill from acquisition (NOK 22m) depreciated over 5 years.

Netherlands	47	37,6
Management & HR	6	5
Accounting	2	1,6
Sales & services support	10	7,3
Technical & installation	29	23,7
Norway & Italy	14	12,9
Management	2	2
Accounting & administration	6	5,4
Legal	1	1
Project development & technical	5	4,5
Energeia Group	61	50,5

Human resources

• 61 employees representing 50,5 FTEs
• Increase of technical staff in the Netherlands to meet increasing demand for energy systems installation & services.

Netherlands activity & focus

Revenue structure | NOKm Profitability | NOKm

9m 2023	Group NL	Power prod.	Installation & services	SG&A & project
Revenues	50,7	11,9	38,9	dev. -0,1
Cost of goods sold	-15,5	0,0	-15,5	0,0
Gross margin	35,3	11,9	23,4	-0,1
% Gross margin	69%	100%	60%
Operating costs	-26,2	-2,4	-19,8	-4,0
EBITDA	9,1	9,6	3,6	-4,1
% EBITDA margin	18%	80%	9%
Depreciation and amortization	-7,0	-3,3	-0,6	-3,2
EBIT	2,1	6,2	3,1	-7,2
Net financial items	-0,7	-0,7	0,0	0,0
Profit/loss before tax	1,3	5,5	3,1	-7,2

9m'2023 revenue structure

• Installation & services revenues 77% of sales. Solar system installation sales increased 57% YoY.
• Energy service revenues comprise 8 000 own service customers and 2 000 on behalf of Energy company client.
• Product offering with cross selling increasing total sales.
• EUR 90 per MWh SDE+ electricity sales contract until 2035.

Cost & profitability

• Installation & services EBIT margin lower due to increased staff to meet increasing demand. August holiday affecting 9m revenues and profit. Target EBIT margin is 15%.
• Financial cost related is interest on long-term debt in power production.

Norway project development & portfolio

Portfolio under contract

Projects in development	No.	Area	Capacity	Power	Investment
		Hectare	MWp	GWh	NOKm
Ready for consession process	4	384	264	316	1 714
Land lease & development	7	792	578	679	3 756
LoI & grid discussion	9	378	213	271	1 386
Project under contract	20	1 554	1 055	1 266	6 855

Project development Norway

• Approx. 40 projects in development, of which 20 currently under contract.
• Most projects in collaboration with Eidsiva Group with Energeia group in lead
• National concession authority (NVE) now requires grid connection agreement before handling concession application.
• Focus going forward is dialogue with Grid companies and TSO (Statnett) to secure grid connection prior to concession application procedure.
• Project development team strengthen with grid competence and experience from Solar concession applications in NVE.

Profitability of a utility scale PV power plant in Norway

Construction cost | NOK/MW Main elements in construction costs

Project construction cost	NOKm/MW
Total investment	6,141
Land preparation	0,297
Infrastructure	0,090
PV Modules	1,655
Grid connection	0,664
Inverter & electrical	0,586
Mounting structure	0,882
Monitoring equipment	0,011
Construction cost	1,499
Development costs	0,077
Working capital	0,089
Contingency	0,292

P&L | NOK 0,50 per kWh

Revenues	0,500
Operating costs	0,086
Grid costs	0,044
Land Rent	0,010
O&M	0,019
Insurance	0,004
Utilities	0,005
SG&A	0,005
EBITDA	0,414
% EBITDA margin	83%
Depreciation	0,170
EBIT	0,243
% EBIT margin	49%
Cash cost	0,257

Valuation assessment per MW	30 yrs
Debt financing / MW	3,07	NOKm
Debt interest rate	5,24%
Equity investment / MW	3,07	NOKm
FCF total assets aft.tax/MW	19,57	NOKm
Acc. Dividends/MW	14,20	NOKm

Capital return per MW
IRR (after tax)	8,9%	30yrs
IRR - Debt yield spread	368	bp
Equity cash IRR (after tax)	11,2%	30yrs
Average dividend yield	15,4%	30yrs
Equity cash payback	11,0	Years

What to expect for 2024

Status:

• Sufficient funding and Dutch profitability to bring Norwegian concession application to fruition.
• Bring Dutch projects forward to construction decisions in municipalities.
• Earliest construction start in 2025 of 4 mature Norwegian solar PV + BESS projects.

Focus & opportunities going forward:

• Continue organic growth of the Dutch business.
• Get Norwegian projects through concession approval process with NVE and grid companies.
• Develop the industrial partnerships further in Norway and the Netherlands.
• Exploring M&A opportunities within operational Solar PV power plants in the Netherlands.
• Exploring M&A opportunities within Energy system installation and services businesses in the Netherlands
• Exploring synergies between Netherlands operations and Norway within equipment B2B wholesale activity.