Eolus Vind — Interim / Quarterly Report 2021

Feb 18, 2022

Eolus sells American battery storage project

1 October 2021 - 31 December 2021

• Net sales 1,009 (1,069) MSEK.
• EBIT -4 (70) MSEK. Profit before tax -9 (24) MSEK.
• Net profit -7 (16) MSEK.
• Earnings per share, before and after dilution equals -0.20 (0.63) SEK.
• During the period energy facilities with a total installed capacity of 0 (0) MW were taken into operations and handed over to customer.
• At the end of the period Eolus had 914 (903) MW under asset management.

Full year 2021

• Net sales 2,614 (2,469) MSEK.
• EBIT -25 (280) MSEK. Profit before tax -40 (183) MSEK.
• Net profit -24 (198) MSEK.
• Earnings per share, before and after dilution equals -0.74 (7.96) SEK.
• During the period energy facilities with a total installed capacity of 47 (324) MW were taken into operations and handed over to customer.
• At the end of the period Eolus had 914 (903) MW under asset management.
• For the financial year 2021 the Board of directors proposes a dividend of 1.50 (2.00) SEK per share, which corresponds to an unchanged level considering that the previous year comprised 16 months.

Significant events during the period

• Due to permitting issues an agreement regarding construction of 68 MW was terminated by the customer in October. The PPA for the involved projects was moved to new projects and increased to 117 MW.
• 50% of a project portfolio of 672 MW in early development phase in Southern Sweden was sold to Hydro REIN. Initial payment was received in January 2022. The companies will jointly develop the projects.
• Turbine supply agreement for 42 wind turbines with an installed capacity of 260 MW was signed for project Stor-Skälsjön.
• The 120 MW battery storage project Cald in Los Angeles was sold to Aypa. Eolus will provide development services for the customer.

Significant events after the balance sheet date

• Eolus COO, Marcus Landelin, will leave Eolus in April. Recruitment for his replacement Is ongoing.
• The completion of the Norwegian wind power project Öyfjellet is expected to be further delayed and is expected to be completed during the second quarter of 2022.
• Updated financial goals communicated based on the business plan for 2022-2024.

Financial summary		Q 4	Q 4	12 months	16 months
	Unit	2021	2020		2021 sep 19-dec 20
Net sales	MSEK	1 009	1 069	2 614	2 469
EBIT	MSEK	-4	70	-25	280
Profit before tax	MSEK	-9	24	-40	183
Net profit	MSEK	-7	16	-24	198
Earnings per share before and after dilution	SEK	-0,20	0,63	-0,74	7,96
Equity per share	SEK	39,50	41,63	39,50	41,63
Cashflow from operating activities	MSEK	-381	-108	-97	-484
Total assets	MSEK	1 885	1 808	1 885	1 808
Net debt - /net cash +	MSEK	439	304	439	304
Signed customer contracts	MSEK	1 793	5 131	1 793	5 131
Project under construction	M W	737	524	737	524
Taken into operation and handed over to customer	M W	-	-	47	324
Project portfolio	M W	13 823	7 830	13 823	7 830
Managed turbines	M W	914	903	914	903
Equity/assets ratio	%	67	57	67	57
Return on equity after tax	%	neg	2,3	neg	20,6**

**return on equity after tax is calculated for 16 months earnings relative to avarage equity.

1 October 2021 – 31 December 2021 Eolus Vind AB (publ) Org. nr: 556389-3956 Made public on February 18th, 2022

Eolus goals 2022-2024

Eolus Board of Directors has adopted a new business plan for the period 2022-2014. The plan entails expansion in all technologies and in all the markets where Eolus conducts business. Based on the business plan Eolus communicates the following financial goals.

• Sales of 1,000 MW per year on average during the period 2022-2024.
• From 2025, sales shall amount to 1,500 MW per year on average.
• Return on equity at Group level shall exceed 10% per year on average.
• Equity ratio at Group level shall exceed 30%.
• Eolus´s dividend over time shall follow the earnings and correspond to 20-50% of the Group's profit after tax. However, dividends will be subject to the Group's investment requirements and financial position.

Significant events during the fourth quarter 1 October 2021 - 31 December 2021

The handover of the Norwegian project Öyfjellet to the customer Aquila is expected to be delayed until the second quarter of 2022. The main reasons for the delay are some technical problems for the turbine manufacturer, Covid-19 related reasons which have limited travel opportunities for staff and led to delivery delays of components as well as the challenging weather conditions which have affected the installation work. The delay has led to a lower degree of completion in the project than expected and increased project costs, which together have a negative impact on Eolus' sales and earnings. Previously reported results from the project, which were based on contemporary forecasts, were adjusted during the quarter, and had a negative effect on the result.

During the fourth quarter, Eolus entered into an agreement for the sale of the Cald battery storage project in Los Angeles, USA. The project that is currently under development covers a total of 120 MW and the investor is Aypa Power. The sale of the Cald project is recognized in the quarter. Eolus continues to develop the project for the customer according to a development agreement where the remaining revenue is distributed until the customer's decision to start construction, which is expected to take place in 2022.

An additional event during the period is the signing of a turbine agreement with Siemens Gamesa covering 42 wind turbines with a combined output of 260 MW for the Stor-Skälsjön project that is jointly owned with Hydro REIN. Eolus has a 51% share of the project. Meaning that project's total value is consolidated in the balance sheet and affects both equity and work in progress and advances to suppliers.

In October, the investor Commerz Real terminated the share transfer agreement for a deal comprising the three wind farms Boarp, Dållebo and Rosenskog in Sweden with a total installed capacity of 68 MW due to permitting conditions for the transaction not being met. Eolus has not reported any revenue from the transaction. A new sales process has been initiated.

In December, the electricity sales agreement signed with a large international energy company for 68 MW was extended to 117 MW. The new agreement concerns the Skallberget / Utterberget, Tjärnäs and Rosenskog wind farms. All projects are located in electricity price area 3 in Sweden. The wind farms are expected to be put into operation in 2023.

In December, an agreement was signed with Hydro REIN on a joint development of 672 MW in nine Swedish wind power projects owned by Eolus. The projects are still in an early phase and located in electricity price areas SE3 and SE4. In January, Hydro paid an initial compensation for 50% of the project rights. The collaboration also means a future profit sharing between the parties as the projects are being realized. As Eolus will continue to consolidate the total value of the projects, the transfer of shares to Hydro REIN will have no effect on earnings in the Eolus Group.

Project portfolio

Projects in late development phase or sales phase

Eolus continuously reports the status of the projects that are in a late development phase or sales phase. These projects are thus the ones that Eolus at any given time deems to have the greatest potential to obtain the necessary permits and where the sales process has or will begin in the near future. The compilation covers projects in all markets that Eolus operates in as well as relevant technologies. This information can be found on Eolus website.

Project under construction 31 Dec 2021				Estimated production,	Planned	Degree of
	Location	Technology	Capacity, MW	GWh	Commissioning	Completion
Øyfjellet	Vefsn, Norw ay, NO4	Onshore w ind	400	1 300	2022	65%
Stor-Skälsjön	Sundsvall and Timrå, Sw eden SE2	Onshore w ind	260	800	2023	0%
Boarp	Vaggeryd, Sw eden, SE3	Onshore w ind	24	72	2024	0%
Dållebo	Ulricehamn, Sw eden, SE3	Onshore w ind	26	66	2023	0%
Rosenskog	Falköping, Sw eden, SE3	Onshore w ind	18	55	2023	0%
Timmele	Ulricehamn, Sw eden, SE3	Onshore w ind	8	23	2023	0%
Total			737	2 316

Consolidated income statement

MSEK	Q 4 2021	Q 4 2020	12 months 2021	16 months sep 19-dec 20
Net sales	1 009	1 069	2 614	2 469
Other operating income	16	32	42	122
	1 025	1 101	2 656	2 591
Operating expences
Cost for goods and project development	-965	-992	-2 485	-2 109
Other external costs	-31	-19	-93	-83
Employee benefits expenses	-19	-22	-59	-71
Depreciation/amortization and impairment of
property, plant and equipment	-1	-2	-5	-8
Result from participations in associated companies	-	-	-	-
Other operating expenses	-13	4	-39	-40
Operating profit	-4	70	-25	280
Profit/loss from financial items	-5	-46	-14	-97
Profit before tax	-9	24	-40	183
Tax on profit	2	-8	16	16
Net profit for the period	-7	16	-24	198
Whereof related to the shareholder of the parent company	-5	16	-19	198
Whereof related to minority stakeholders	-2	0	-5	0
Net profit for the period	-7	16	-24	198
Total shares	24 907	24 907	24 907	24 907
Profit per share before/after dilution (SEK)	-0,20	0,63	-0,74	7,96
Consolidated statement of comprehensive income MSEK
Net profit for the period	-7	16	-24	198
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences	4	-7	15	-21
	-2	2	-5	6
Other comprehensive income for the period net after tax	2	-5	10	-15
Total comprehensive income for the period	-4	11	-13	183
Whereof related to the shareholder of the parent company	-1	11	-6	184
Whereof related to minority stakeholders	-3	0	-7	0
Total comprehensive income for the period	-4	11	-13	183

Consolidated balance sheet

MSEK	31 Dec 2021	- 31 Dec 2020
ASSETS
Non-current assets
Intangible assets	11	25
Property, plant and equipment	25	30
Deferred tax asset	6	13
Other financial assets	16	15
Total fixed assets	59	83
Current assets
Inventories, work in progress and certificates	843	429
Advance payment to suppliers	170	47
Account receivable - trade	71	16
Derivative instruments	2	37
Current tax assets	24	35
Other receivables	55	7
Prepaid expenses and accrued income	35	463
Cash and bank balances	625	691
Total current assets	1 826	1 725
TOTAL ASSETS	1 885	1 808
MSEK	31 Dec 2021	31 Dec 2020
EQUITY AND LIABILITIES
Equity
Equity related to the share holders of parent company	984	1 037
Equity related to minority stake holders	280	- 1
Total equity	1 264	1 036
Non-current liabilities
Non-current interest bearing liabilities	21	135
Provision, non current	0	1
Deferred taxes	18	21
Other liabilities	65	71
Total non-current liabilities	105	228
Current liabilities
Current interest bearing liabilities	165	252
Bills payable	186	169
Derivative instruments	5	5
Current tax liabilities	4	7
Accrued expenses and deferred income	116	103
Advance paument from customers	10	-
Other liabilities	31	9
Total current liabilities	516	545
Total equity and liabilities	1 885	1 808

Consolidated cash flow statement

	Q 4	Q 4	12 months	16 months
MSEK	2021	2020	2021	sep 19-dec 20
Operating activities
Operating profit	-4	70	-25	280
Non cash items	12	-12	46	-58
	8	58	21	223
Interest received	2	2	2	4
Interest paid	-4	-2	-19	-21
Income tax paid	-12	-5	-26	-
Net cash flow from operating activities before changes
in working capital	-6	52	-22	206
Adjustments of working capital	-375	-161	-75	-689
Cash flow from operating activities	-381	-108	-97	-484
Acquisition of property, plant and equipment	-2	-	-4	-16
Sales of property, plant and equipment	0	-	1	21
Cash flow from investing activities	-1	-	-3	4
Borrowings	3	-	50	263
Repayment of loans	-12	-	-258	-153
Paid dividends	-	-	-50	-37
Payments from non-controlling interests	290	-	290	-
Cash flow from financing activities	281	-	32	73
Cash flow for the year	-102	-108	-68	-407
Cash and cash equivalents at beginning of year	726	799	691	1 103
Exchange-rate differences in cash and cash equivalents	0	0	2	-6
Cash and cash equivalents at year-end	625	691	625	691

Consolidated statement of changes in equity

		Additional
	Share	paid-in		Retained	Total, Eolus's	Non-controlling
MSEK	capital	capital	Reserves	earnings	shareholders	interests	Total equity
At 1 September 2019	25	191	-1	862	1 077	-1	1 076
Net profit for the year	-	-	-	13	13	0	13
Other comprehensive income	-	-	-15	-	-15	-	-15
Total comprehensive income	-	-	-15	13	-2	0	-2
Transactions with shareholders
Dividend	-	-	-	-37	-37	-	-37
At 31 December 2020	25	191	-17	838	1 037	-1	1 036
At 1 January 2021	25	191	-17	838	1 037	-1	1 036
Net profit for the year	-	-	-	-19	-19	-5	-24
Other comprehensive income	-	-	15	-	15	-2	13
Total comprehensive income	-	-	15	-19	-3	-7	-10
Transactions with shareholders
Dividend	-	-	-	-50	-50	-	-50
Capital contribution from non-controlling interests	-	-	-	-	-	288	288
At 31 December 2021	25	191	-1	770	984	280	1 264

Sustainability for Eolus

The transition to a sustainable society is one of the most important issues of our time, and Eolus are proud to be a part of this journey. With our core business we contribute to the reduction of greenhouse gas emissions, however, we also have a larger social responsibility where we want to ensure that our employees have meaningful jobs that ensure personal development. Our business concept touches upon all three pillars of sustainability: ecological, economical, and social sustainability, and we actively work towards the global sustainability goals identified by the UN.

We want to take responsibility and be transparent in communicating the steps we are taking to achieve our sustainability goals. Therefore, we set a goal during 2019 to map the business CO2-emissions during 2020. Due to the covid-19 pandemic, the conditions were changed, and the project was delayed. This work has now been resumed and we have invested in a strategic tool to manage our sustainability data.

The system is currently under build-up and implementation where the purpose is to measure our organisations emissions in scope 1, 2 and 3 according to the GHG-protocol. Scope 1 includes our direct greenhouse gas emissions (e.g., from vehicles), and scope 2 covers our indirect emissions (e.g., procurement of energy). The greenhouse gas emissions that are external to our own business boundaries are covered in scope 3 (e.g., our supply chain). We have initiated the measuring process for scope 1 and 2 for our Swedish operations, and during 2022 we will form a structure to measure our emissions in scope 3 where we have identified the bulk of our emissions and our main climate impacts. The goal is to start measuring all three levels during 2022, and during the next financial year develop an action plan to reduce our greenhouse gas emissions. Long-term, the aim is to do this on all our active markets.

Over the course of 2021 we have also performed employee surveying in a new digital tool. The purpose is to gain a better understanding of how our employees perceive their working environment, and systematically implement improvements based on the results. The employee survey will be conducted on an annual basis.

Currently at Eolus

Battery storage project Cald in Los Angeles

During the period Eolus has signed an agreement to sell its first project within energy storage through the sale of the stand-alone battery storage project Cald in the United States. The project that is under development totals up to 120 MW and the investor is Aypa (a Blackstone company). Eolus has divested all membership units in the project company to Aypa Power and have received payment for them and recognized the sale. The payment for the membership units will be kept by Eolus even if the project for some reason in the future will be cancelled. Eolus develops the project for Aypa through a Development Services Agreement under which Eolus remaining revenue is received as the project develops with final payment when Aypa Power decides to start construction, which is expected to occur late 2022. Expected commissioning is during 2024.

In project Cald a land area in central Los Angeles is used that previously have been a junk yard. This gives a new and wise use of an area of land in which the ground is polluted. The project is in permitting process and grid connection Is secured.

Different types of energy storage have a great potential in California given the challenge to ensure a stabile renewable electricity supply. Large-scale storage in the right places contributes to more installed capacity of intermittent production capacity, provides balancing opportunities cuts peaks in consumption and gives greater stability in the grid by complementing and replacing conventional production facilities.

Given the great potential for large scale energy storage in California Eolus identifies big opportunities för stand-alone solutions for energy storage as well as storage capacity connected to production facilities in sun and wind. Eolus has projects in all of these three technologies in California and surrounding states which have good possibilities of being permitted and constructed. During 2021 Eolus completed project Wind Wall 1, a 47 MW wind repowering project in California.

Cald is a lithium-ion battery solution for up to 4-hour storage, and this is the main technology Eolus work with at this time. However, Eolus is not tied to certain solutions within storage. The choice of technology is determined by each market and its conditions, as well as which problems in the grid the storage shall solve.

About Eolus

Eolus is one of the leading wind power developers in the Nordics and is also active in other markets and besides wind we develop solar and energy storage solutions. Eolus main business is to develop renewable energy projects, establish turnkey facilities for our customers and provide long term asset management services.

Business idea

The business idea of the Eolus group is to create value in all steps of development, establishment, and operations of facilities for renewable energy and energy storage and offer local and international investors attractive and competitive investment opportunities.

Segments

Within the segment development, which is Eolus main business, projects are realized mainly by the divestment of turnkey operational facilities to a broad customer base of Investors. The business model also includes that part of the project portfolio is realized through the sale of project rights for permitted projects and projects under development. The strategy in the project development in the company is to focus on projects with high probability to be realized regardless of technology and market and to develop them with the highest possible quality at the lowest possible cost.

Currently Eolus conducts project development in Sweden, Norway, Finland, the United States, Poland and the Baltic states within onshore and offshore wind power solar power and energy storage.

Within the segment asset management Eolus offers a complete concept of asset management services for facilities for renewable energy. The goal is to ensure owners of a worry-free ownership and to maximize the return on investment over time.

Eolus market presence The total project portfolio diveded per market.

Eolus Vind AB (publ) info@eolusvind.com Box 95 www.eolusvind.com 281 21 Hässleholm Org nr. 556389-3956 Tel (vx): +46 (0)10 – 199 88 00

Eolus Vind AB Extract of Year End 2021 8