Magnora ASA

Investor Presentation • Nov 16, 2021

Q3 2021 Presentation

Disclaimer

• The information in this presentation has been prepared by Magnora ASA (the "Company"). By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations and provisions:
• This presentation has been prepared by the Company based on information available as of the date hereof. By relying on this presentation you accept the risk that the presentation does not cover all matters relevant of an assessment of an investment in the company.
• No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company, any advisor or any such persons' officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this presentation. The information herein is subject to change, completion, supplements or amendments without notice.
• The presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof, and may contain certain forward-looking statements, which include all statements other than statements of historical fact. By their nature, forward-looking statements involve risk and uncertainty because they reflect the Company's current expectations and assumptions as to future events and circumstances that may not prove accurate. It should be understood that subsequent developments may affect the information contained in this document, which neither the Company nor its advisors are under an obligation to update, revise or affirm. Forward-looking statements involve making certain assumptions based on the Company's experience and perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. Although we believe that the expectations reflected in these forward-looking statements are reasonable, actual events or results may differ materially from those projected or implied in such forward-looking statements due to known or unknown risks, uncertainties and other factors. These risks and uncertainties include, among others, uncertainties in the electric consumer market, uncertainties inherent in projecting future rates of production, uncertainties as to the amount and timing of future capital expenditures, unpredictable changes in general economic conditions, volatility of prices, competitive risks, counterparty risks including partner funding, regulatory changes and other risks and uncertainties discussed in the Company's periodic reports. Forward-looking statements are often identified by the words "believe", "budget", "potential", "expect", "anticipate", "intend", "plan" and other similar terms and phrases. We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation, and we undertake no obligation to update or revise any of this information.
• This complete presentation is for informational purposes only and does not constitute an offer to sell shares in of the Company. This presentation is not a prospectus, disclosure document or offering document and does not purport to be complete. Nothing in this presentation should be interpreted as a term or condition of any future transaction. The presentation is strictly confidential and may bot not be reproduced or redistributed, in whole or in part, to any other person.
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• The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice.
• Any investment in the Company involves inherent risks and is suitable only for investors who understand the risks associated with this type of investment and who can afford a loss of all or part of the investment. Investors should carefully review the summary of risk factors set out in the following slides before making any investment decision.
• The presentation and any purported liability in connection with it is subject to Norwegian law and is subject to the exclusive jurisdiction of the Norwegian courts.

Today's presenters

CEO Erik Sneve

Executive Chairman Torstein Sanness

Slide 3

A portfolio approach in developing solar and wind projects – supported by legacy royalty revenues

Growing an asset-light development portfolio of wind- and solar energy projects, and technology development

Highly experienced renewable energy investment and project team leading Magnora's transition

Ambition to develop solar and wind projects with a total equity share capacity of ~5 GW by 2025

Financing from near-term cash flow of USD ~20 million from legacy FPSO assets

Listed on Oslo Stock Exchange with approx. 9,300 shareholders

Growing asset-light wind and solar project portfolio with low capital requirements

Project and company search and deal flow monitoring Focus on early-stage evaluations and developments of wind and solar PV Invest jointly with partners and/or consider developing own projects Maturing and derisking with key developments farm-down/sale in the portfolio companies Invite project partners for ownership optimisation at construction start Magnora team with extensive renewable project track record

Strong cash flow from legacy FPSO assets and company/project monetisation

Slide 5

Record high energy prices lead to increased pricing power for developers - Favorable price development and market outlook

One year Nordic system price development1)

Nordic price development forecast2)

November 12, 2020

November 12, 2021

High activity and good progress in portfolio companies

• 1GW pipeline achieved six months ahead of original schedule
• Experience good interest from European developers and infrastructure funds on back of higher electricity prices and stalling onshore wind potential Northern Europe
• Expected sales process of two of the projects totaling 68 MW, with expected close short term
• In final discussions for other projects ready to be sold short term
• Identified and included energy storage potential in several projects
• Considering expansion into two other countries in Nordpool area

• Reached business plan milestones ahead of schedule commercial development agreement
• Increased market activities, and signing of multiple NDAs with potential partners and customers – both in glass as well as cell/module industry
• Growing interest in the perovskite technology and Evolar from financial advisors and large investors
• Intensifying work around maximizing value for Magnora and Evolar shareholders (IPO)
• Initiated process of increasing Magnora's next ownership option by the end of the year

• Submitted two applications to the Scotwind lease round with TechnipFMC
• Site visits to respective areas in Scotland and business development with key local stakeholders
• Looking into new opportunities with TechnipFMC into other lease rounds
• Discussing with other potential partners for various lease rounds and ownership in Magnora Offshore Wind

Key financials

• Operating revenues mainly reflects license income from agreement with Dana
  • ‐ Increase mainly due to higher off-loading volumes
  • ‐ Operator has secured rig for new production well
• Higher operating costs from business development activities, bonus payment, development of Magnora Offshore Wind, and the SPV in South Africa
• Cash flow in the quarter was mainly affected by
  • ‐ Increased ownership in Helios Nordic Energy AB and KustVind AB
  • ‐ Continued investments in projects in Magnora Offshore Wind and Magnora South Africa
• Established credit facility of NOK 50 million with tier 1 leading Nordic bank during the quarter which currently is un-used.

Projected license and royalty income from FPSO 2021-2023 of USD ~20 million

• Future income of USD ~16 million from the Penguins project* in est. in 2022:
  • ‐ Sail away from yard in March according to online newspapers
  • ‐ First production
  • ‐ Production of 4 Mmboe equivalent of approximately three months production

Projected licence income Estimated royalty income

• USD 0.5 per barrel produced and offloaded from Western Isles FPSO owned and operated by Dana Petroleum
• New drilling, tie-ins or re-deployment could increase revenues. Rig secured according to media and analysts.

Financial strategy, capital priorities and outlook

• Financing plan for development phase of planned activities towards 2025
  • ‐ Existing balance sheet cash and credit line
  • ‐ Cash flow from FPSO contracts
  • ‐ Organic cash flow from realization of projects
  • ‐ Farm downs
• Dividend from potential IPOs and extra ordinary sales, if no new attractive reinvestment possibilities
• Identified new growth opportunities in and outside our core geographic areas
• Magnora has track record of returning NOK 517 million to shareholders over last three years, reduced after implementation of renewable strategy
• Shareholder friendly

"Developing the right projects and companies in order to generate long term shareholder value "

CONTACT US

Visiting address: Karenslyst Allé 2 0277 Oslo Norway

Postal address C/O Advokatfirmaet Schjødt AS P.O. Box 2444 Solli, 0201 Oslo Norway

www.magnoraasa.com