Magnora ASA

Investor Presentation • Sep 20, 2023

Pareto Securities 30th annual Energy Conference

September - 2023

magnoraasa.com

A pure play "asset light" renewables developer

Growing an asset-light development portfolio of renewable energy projects with strict capital discipline

Highly experienced team from investments and renewable energy development

Rapid growth – in Q2 we raised our guiding to 9,000 MW¹ renewables by end of 2025

Solid cash position and near-term cash flow from project sales, legacy business and dividends

Listed on the main board of Oslo Stock Exchange with some 7,600 shareholders²

We invest in renewable and clean energy built in a sustainable way

Changes from Pareto Conference 2022

Cash (mNOK) Q2 '23 409 Versus 10.8 in Q2 '22

+78% in 12 months

5.9

Net profit (mNOK) Q2 '23 203.0

Versus -13.5 in Q2 '22

GW in portfolio (Net share¹ )

Share price (NOK 35.7

• 59% since 19 September '22

Strategy established •	First farm down •	First dividend •	First "hand-overs" •
• Returned legacy cash to shareholders • Four employees and	• Continued fast paced portfolio additions across	received from portfolio company • Hafslund becoming	126 MW in Q1 Exit from Evolar at up • to x10 multiple
NOK 50m cash Q1 Focus on renewables • with support from top shareholders	several renewable technologies	largest shareholder New mutual funds • top 20 shareholders	• Growth combined with return of capital to shareholders Sold 295 MW net YTD •

2022 2023

2020 2021

Diversified across technologies and regions

(As of 10 August 2023, projects in development, excluding projects handed over to customer)

	Solar MW	Offshore floating wind MW	Offshore bottom-fixed MW	Onshore wind MW	Storage MW	Under development
Sweden1	2,228		250		512	2,990
Scotland		396				396
England	78				110	188
Norway	158					158
South Africa	1,297			703	153	2,153
Development portfolio2	3,761	396	250	703	775	5,886

2) Total capacity in MW x Magnora's ownership share = Net share

We are developing renewable projects to the Ready-to-Build phase

De-risking early-stage renewable projects and mitigating risk requires savvy business skill, experience & "portfolio logic"

Developing projects to Ready-to-Build phase ("ASSET LIGHT") with limited balance sheet risk

Collective drive towards green shift gives lower risk in earlystage development

Value premium for early-stage project development with low operational costs

Reducing risk in development phase through high competence and experience

Strategic partnerships

Hand-picked management and team executing on big renewables opportunities with entrepreneurial approach

Torstein Sanness

Executive Chairman

• Co-founder of Lundin Petroleum Norway and DNO, and from several executive positions during his 25 years at Saga Petroleum.
• Board member IPC, Panoro Energy, Carbon Transition, previously Chairman of Lundin Petroleum Norway.
• Master's degree in Engineering (geology, geophysics and mining engineering) from NTH.

Erik Sneve

• 25 years experience from various positions in the investment and renewable industry
• Experience from working as an analyst, consultant and investment director in EY, DnB Markets, Energy Future Invest (EFI – a Statkraft, Hafslund and Eidsiva Energi joint-venture), Tore Tønne and Torstein Tvenge.
• COO Has worked internationally in the US, Sweden, Germany and opened offices in the UK and Sri Lanka in software company.
• Responsible for the Solibro AB (Swedish solar technology company) development, construction and exit for EFI to Qcells. • Former Chairman Evolar AB – development and exit to Fist Solar
• Inc.
• B.Sc. in Finance from Arizona State University with Summa Cum Laude and Dean's list.

Strong team of professionals with extensive experience from the energy industry

Bård Olsen CFO

Professor

Stein Bjørnstad Senior Advisor, Ass

Bjørn Drangsholt CEO Hafslund Magnora Sol AS

Emilie Brackman VP Wind & Solar

Trond Gärtner SVP Business development

Haakon Alfstad CEO Magnora Offshore Wind

Espen Erdal VP Business development

Slide 8

Power prices increased dramatically between 2020 and 2022

But futures have come down

Historical power prices and power futures | EUR/MWh

Our customers are leaders in their respective markets with little risk and high future potential for Magnora

Globeleq	Our first customer in South Africa - is owned by the Norwegian and UK governments and is an ambitious and respected developer
Commerz Real AG	is a Helios customer and a leading European bank and infrastructure investor
Hafslund	(21 TWh year in green energy)– a Helios customer and a partner in Hafslund Magnora Sol AS - is a leading European utility
Other Helios customers include Nordic Solar	Leading European IPP
Solgrid	Owned by some of the largest utilities in Norway
Magnora sold Evolar to First Solar Inc.	America's leading manufacturer of Solar PV, and the most valuable solar PV company anywhere

Magnora's legacy business is alive and well

Background

• After the sale of assets to SembCorp, there were two royalty contracts remaining with Shell and Dana Petroleum – each specified revenues for design and production license fee from FPSO developments
• These contracts financed Magnora's 2019-2022 transformation to an early-stage renewable developer
• The Western Isles FPSO allow for electrification from shore or wind turbines. The Western Isles FPSO has a design that allows rebuild and electrifications
• Launched in 2017. Hull life is designed to last 30 to 50 years. Can produce 44,000 barrels per day without modifications. Magnora is entitled to a design fee of USD 50 cent per barrel over asset life
• The two final milestones from the Shell Penguins contract total USD 8.6 million and are expected in the near to midterm

A reminder on our guiding

Portfolio: 9 GW in 2025 (+4GW) Sales: 200-325 MW in 2023 Price: 0.5->1.5 mNOK/MW

• We expect the majority of the portfolio growth to be solar PV and battery storage assets
• All figures on the development portfolio are net to Magnora, that is Magnora's ownership share multiplied by the capacity of any given asset

• Magnora strives to be conservative in its portfolio estimate counting assets with signed land agreements and a reasonable prospect for grid connection

• Sales activities are picking up in all major markets

• Net 295 MW sold as of July 2023
• Most sales are projects or portfolios of projects - alternatively farm downs or sale of companies/SPVs
• Frequently, sales are closed early with a combination of up-front and milestone payments*

(unchanged)

• The price range provides an accurate picture of asset value when ready-to-build*
• As previously, outliers are excluded**

* Most sales occur pre "ready-to-build" with significant advance payments and subsequent payments subject to milestones. We recognize revenue when these milestones are met, e.g. grid connection or hand-over.

** E.g. stand-alone solar pv in South Africa that is unlikely to fetch premium prices. Prices for certain markets and projects may also be above this range.

In the future Magnora may differ from today

Background

• On 28 August, Magnora signaled a review of the company structure ‐ Legacy design business vs early- stage renewable business. Onshore vs Offshore.
• In parallel, we encounter significant interest for individual assets, company, companies and portfolios
• If we believe a deal is in the best interest of our shareholders, we pursue accordingly
• Magnora's Board has hired Pareto Securities to assist management and the Board to explore opportunities and prepare for eventualities

We have been fortunate with our shareholders

Top 20 shareholders

	# shares	% ownership
HAFSLUND VEKST AS	4,474,272	6.70
KING KONG INVEST AS	2,670,995	4.00
GINNY INVEST AS	2,469,144	3.70
ALDEN AS	2,050,000	3.07
CARE HOLDING AS	1,750,000	2.62
F1 FUNDS AS	1,743,121	2.61
PHILIP HOLDING AS	1,648,377	2.47
F2 FUNDS AS	1,630,000	2.44
Interactive Brokers LLC	1,371,482	2.05
DNB BANK ASA	1,336,852	2.00
MP PENSJON PK	1,280,732	1.92
ALTEA AS	1,154,944	1.73
NORDNET LIVSFORSIKRING AS	1,098,180	1.64
Morgan Stanley & Co. Int. Plc.	1,011,323	1.51
MAGNORA ASA	1,010,854	1.51
AARSKOG	1,000,000	1.50
CLEARSTREAM BANKING S.A.	991,655	1.48
DANSKE BANK	788,531	1.18
BALLISTA AS	760,372	1.14
BAKLIEN	756,100	1.13
Total, 20 largest shareholders	30,996,934	46.39 %

Board and Management exposure

Person		Number of shares	Number of options
Erik Sneve	CEO	1,173,871	450,000
Torstein Sanness	Chairman	629,442	325,000
Haakon Alfstad	CEO Magnora Offshore Wind	111,177	200,000
Hilde Ådland	Board Member	39,011	10,000
Bård Olsen	CFO	75,000	125,000
John Hamilton	Board Member	33,837	40,000
Espen Erdal	VP Business Development	17,174	125,000
Trond Gärtner	SVP Business Development	7,000	100,000
Emilie Brackman	VP Wind & Solar	2,600	75,000
Hanne Wiger	Business Controller	4,474	50,000
Stein Bjørnstad	Head Advisor	15,000	50,000
Total		2,108,586	1,550,000
% of shares outstanding		3.16 %

CONDENSED PROFIT AND LOSS

Q2 2023, NOK million

	Q2'23	Q1'23	Q2'22
Operating revenue	2.3	16.4	5.9
Other income	229.6	0.0	0.0
Operating expense (ex. non-cash)	-9.5	-7.9	-8.0
EBITDA	204.3	-8.9	-22.8
Option expense (opex non-cash)	-1.3	-2.2	-1.0
Development and M&A expense	-18.2	-17.4	-20.7
Profit/loss from associated companies	-4.9	26.6	7.6
Operating profit/loss	199.3	17.7	-15.1
Net financial items	3.7	-7.0	1.6
Profit/loss before tax	203.0	10.7	-13.5

For further details see Q2 report 2023 (magnoraasa.com)

• EBITDA of NOK 204.3m vs. negative NOK 8.9m in Q1'23
• ‐ Mainly due to divestment of Evolar and dividend from Helios
• ‐ All companies with ownership >50% are consolidated 100% in P&L
• ‐ Slightly higher development and M&A expense compared with prior quarter due to closing costs for the Evolar transaction
• Operating profit of NOK 199.3m vs. of NOK 17.7 m Q1'23
• ‐ Loss from associated companies was NOK 4.9m vs profit of NOK 26.6m prior quarter
• Tax not payable due to accumulated tax losses of over NOK 3.5 billion from legacy business
• Paid in capital of NOK 8.4 billion

Cashflow from:

• ‐ Operating activities negative NOK 18m
• ‐ Impacted by development costs in Evolar, Magnora Offshore Wind, and Magnora South Africa – due to consolidation

‐ Investment activities NOK 311.4m

• ‐ Divestment of Evolar
• ‐ Dividend from Helios
• ‐ Purchase of assets and associated companies
• ‐ Financing activities of negative NOK 5.7m
• ‐ Purchase of own shares
• Ending cash balance of NOK 409.1m
• ‐ The Group's cash and available credit facilities was NOK 559.1 million as of 30 June 2023
• Evolar settlement converted at USD/NOK rate 10.685

Outlook

Appendices

www.magnoraasa.com

Update on some key markets

The case for renewable energy is strong in all our markets

	Electricity price to consumer (NOK/kWh) 2023 excl. net and tax	LCOE Solar PV (NOK per kWh)	Stated govt. ambition or similar for renewables by 2030	Regulatory regime
Norway	Ca 0.95 (Q1 and Q2)	NA	40TWh (incl. 5-10 hydro (Energikommisjonen)	Generally supportive
UK	0.70 (52 GBP per MW in first half of 2023)	Ca 0.5 (0.33 by 2030*)	Government aims for 30 GW solar, 50 GW offshore wind	Generally supportive
Sweden	Ca 0.75 (SE3 and SE4)	Ca 0.5 (0.33 by 2030*)	Market expect 30TWh (no official policy)	Supportive
South Africa	1.20 (above 2 ZAR) including net	0.35- 0.45	Government and Eskom aims for 20-30 GW	Grid is challenging - no spot market

*According to Norwegian Water Resource and Energy Directorate (NVE), 2022 prognosis

Swedish electricity market is set to double by 2035

Solar power is expected to be one of the main contributors

Forward looking solar production in Sweden (GWh)

30 000

3,800

%

The UK has been number one in EY's ranking of attractive countries for offshore wind for the past three years¹

Benefitting from governmental policies and regulatory regimes focused on accelerating the deployment of offshore wind.

Scotland's Pioneering Role in Offshore Wind Innovation

1

2

3

4

Ambitious government targets for deployment

• Up to 50GW offshore wind capacity by 2030, including up to 5GW of FOW²
• Scottish government is targeting 11GW by 2030³

Excellent geography for offshore wind

• As an island nation, the UK is well suited to offshore wind deployment
• The UK, in particular Scotland, has some of the best wind resource in the world³

Established, well-regarded regulatory regime

The UK has developed a regime covering the entire offshore wind project life cycle with plans to accelerate the pipeline deployment

Scotland at the forefront of FOW development

• Scotland deployed the world's first FOW farm, Hywind, followed by the world's largest FOW farm, Kincardine
• 40% of the c.78GW offshore pipeline is FOW²

Map of operational UK offshore wind sites⁴

..in addition, the UK energy market is expecting soaring growth in both battery and solar markets by 2030

Rapid growth of utility-scale battery storage facilities in the UK

• Short-term electricity energy storage capacity in the UK is currently dominated by pumped hydro, a mature technology with limited potential for significant capacity increase over the next three decades due to geographical constraints.
• On the other hand, utility-scale battery storage facilities in the UK have experienced rapid growth in recent years and now account for approximately one-third of the grid's storage power capacity. This growth trend is expected to continue, with projected energy storage capacity reaching 190 GWh by 2050.

How UK solar can become a 40GW+ market by 2030

• While dominated by wind power, the UK solar market is set to experience significant growth, with the potential to add up to 25GW of solar capacity by 2030
• All market segments in the UK solar industry are in growth mode, showing encouraging contributions from various subcategories, including residential and commercial rooftops, as well as utility-scale ground-mounted solar farms. The cumulative capacity is expected to reach 40GW by the start of 2030, driven by a combination of rooftop and ground-mount installations

Source: DNV Energy transition outlook, UK 2022

South Africa has huge potential, and our asset-light model carries little risk

The fundamentals of this market is very promising

• Some 60 million customers in the only potential mid-income market in Africa
• A power-consuming and export-oriented industry, particularly mining that needs secure power supply and may be subject to pressure from customers about sustainability (a very interesting PPA market)
• Rolling shut-downs of electricity system drives strong interest from corporate and industrial customers bypassing the government auction system.
• Ambitious goals from the government, and a well established system of auctions (REIPPP) where private companies bid to supply capacity. This REIPPP program has secured 2.8 GW of solar PV and 3.4 GW as of August 2023
• The ambition is to expand the REIPPP program to secure another 20- 30 GW in 10 years
• A geography with excellent opportunities for renewable energy: abundant land, best-in-class sun resources and fairly constant and stable wind resources
• A run-down power system where coal contributes 80-85 % of the current electricity supply, set for replacement by a combination of renewables, batteries and some gas power

Rapid growth of installed Solar for both industry and consumer markets

Estimated Cumulative Solar PV in South Africa (C&I and Residential) in MW

Source: Eskom, integrated resource plan, and https://www.bloomberg.com/netzeropathfinders/best-practices/integrated-resourceplan-south-africa/

Example of Helios farmdowns – total 953,5 MWp Magnora is largest shareholder in Helios

Broad portfolio of attractive companies and projects – Gross Numbers (per 30 June 2023)

Ownership	40%	100%	92%	80%	44% Option to 50%	50%	50%	48%	33%
						STORAGE UK	PV UK
Segment	Solar & Energy Storage		Onshore Wind & Solar	Offshore Wind	Offshore Wind Shallow Water	Energy Storage	Solar	Solar	Green Hydrogen Ammonia
Gross Capacity	7,157 MW		2,153 MW	495 MW	500 MW	220 MWh	155 MW	330 MW	Large-scale production
Location	Sweden, Finland, Baltics		South Africa	Scotland	Sweden	UK	UK	Norway	Norway

Reported financials

Condensed consolidated income statement

million NOK	Note	Q2 2023	Q1 2023	YTD 2023	Q2 2022	YTD 2022	2022
Operations
Operating revenue	5	2 3	16 4	18 7	5 9	9 6	91 7
income Other	12	229 6	0 0	229 6	0 0	0 0	0 0
Operating expense	2	-9 5	-7 9	-17 4	-8 0	-15 9	-31 8
Development and M&A expense	2	-18 2	-17 4	-35 6	-20 7	-30 5	-49 4
EBITDA		204 3	-8 9	195 4	-22 8	-36 7	10 5
Profit/loss from associated companies		-4 9	26 6	21 7	6 7	2 9	-3 9
Operating profit/(loss)		199 3	17 7	217 0	-15 1	-33 8	6 6
Financial income/(expense)		-1 4	-0 5	-1 9	0 3	0 9	-2 1
FX gain/(loss)		5 1	-6 5	-1 4	1 3	0 7	7 4
financial items Net		3 7	0 -7	-3 3	6 1	6 1	4 5
Profit/(loss) before tax		203 0	10 7	213 7	-13 5	-32 2	12 0
income/(expense) Tax		0 0	0 1	0 1	0 1	0 1	-8 1
profit/(loss) Net		203 0	10 8	213 8	-13 5	-32 1	3 9

Reported financials

Condensed statement of financial position

NOK million Note	30.06.23	31.03.23	31.12.22
Deferred tax assets	15.1	15.1	15.1
Intangible assets	142.1	193.7	170.9
Right-of-use assets	0.0	8.7	9.0
Fixed assets	0.3	19.8	15.3
Goodwill	10.4	35.7	34.1
Other non-current assets	2.0	0.0	0.0
Investment in associates	50.2	86.0	26.4
Total non-current assets	220.0	359.1	270.9
Trade and other receivables	23.7	19.7	97.7
Other current financial assets	25.8	22.2	23.7
Cash and cash equivalents	409.1	121.4	171.9
Total current assets	458.5	163.4	293.3
Total assets	678.5	522.4	564.2
Share capital	32.7	32.7	32.7
Treasury shares	-0.2	0.0	0.0
Other equity	578.2	382.6	353.3
Total shareholders' equity	610.7	415.3	386.0
Non-controlling interest	21.6	45.6	45.8
Total equity	632.3	460.9	431.8
Deferred tax liability	0.4	5.2	4.9
Non-current liabilities	0.0	5.9	5.2
Total non-current liabilities	0.4	11.0	10.1
Overdraft facility*	0.0	0.0	76.3
Current liabilities	45.8	50.5	46.0
Total current liabilities	45.8	50.5	122.3
Total liabilities	46.3	61.5	132.4
Total equity and liabilities	678.5	522.4	564.2

For further details and notes see Q2 report 2023 (magnoraasa.com)

Reported financials

Condensed statement of cash flow

NOK million	Q2 2023	Q1 2023	YTD 2023	Q2 2022	YTD 2022	2022
flow from operating activities Cash
Cash from operations	-18 0	42 0	24 0	-22 8	-32 9	-67 7
Taxes paid/repaid	0 0	0 0	0 0	0 0	0 0	0 0
Net cash generated from operating activities	-18 0	42 0	24 0	-22 8	-32 9	-67 .7
flow from investment activities Cash
Net purchase of marketable securities	0 0	0 0	0 0	3 1	3 1	0 0
Investment in fixed assets	-1 7	-3 7	-5 4	-3 9	-3 9	-8 7
Dividend received	24 1	0 0	24 1	0 0	0 0	6 1
Investment in subsidiary net of cash acquired	299 1	0 0	299 1	3 8	3 8	-6 7
of associated companies Net purchase	-10 0	-11 5	-21 5	0 0	-25 5	-21 4
ScotWind lease option fee	0 0	0 0	0 0	-94 6	-94 6	-118 3
Received loan related to ScotWind lease option	0 0	0 0	0 0	0 0	0 0	23 7
from investment activities Net cash	311 4	-15.2	296 2	-93 4	-119 0	-125 3
Cash flow from financing activities
Purchase of own shares	-5 3	0 0	-5 3	0 0	0 0	0 0
Capital distribution/increase	0 0	0 0	0 0	3 3	3 3	194 4
Leasing payments	-0 4	0 -1	4 -1	0 0	0 0	-2 7
Overdraft facility drawn*	0 0	-76 3	-76 3	62 5	62 5	76 3
from financing activities Net cash	-5.7	-77.3	-83 0	65 8	65 8	268 0
Net cash flow from the period	287 .7	-50 4	237 3	-50 4	-86 .1	75.0
Cash balance at beginning of period	121 4	171 9	171 9	61 2	96 9	96 9
of period Cash balance at end	409 .1	121 4	409 .1	10 8	10 8	171.9

For further details and notes see Q2 report 2023 (magnoraasa.com)

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.

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Karenslyst allé 6 | 1st Floor 0277 Oslo | Norway magnoraasa.com