Ocean Sun

Earnings Release • May 12, 2022

OCEAN SUN WORLD LEADING TECHNOLOGY PROVIDER TO FLOATING PV SYSTEMS

QUARTERLY PRESENTATION Q1 2022 12.05.2022

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• Ocean Sun in brief
• Operations and business developments
• Market update
• Financials

Ocean Sun in brief

becoming binding contracts or commitments, and/or what terms and conditions that will apply to such contracts (if entered into) are uncertain.

Operations and business developments

Statkraft Albania – Rebuilding progressing well

Project update

Ocean Sun and Statkraft have completed the re-installation of the first 500 kWp floater in Albania. Commissioning and connection to the grid opened April 1st . The remaining 1.5 MWp will be installed in a second phase later in 2022.

Project details

Ocean Sun and Statkraft have signed an agreement to construct a 2 MWp floating solar power plant on Statkraft's 72-megawatt hydropower plant in Banja, Albania. The first 0.5 MWp floater was successfully built and connected to the Albanian grid in June 2021. However, only a few weeks later the floater and two connected barges experienced an incident during a tornado. Following the incident, Ocean Sun has conducted a thorough root cause analysis and implemented a design for high winds and new operational practices. These have been verified by meteorologist and naval architects from well reputed third-party institutions.

MP Quantum Group collaboration - Greece

Project Update

• MP Quantum collaboration entered in March 2021
• Plan for nearshore demonstration system largest of its kind in Europe
• Regulatory framework is expected to pass ultimo May
• Planning for first pilot started for a location in the South Euboean Gulf

In March 2021, Ocean Sun and MP Quantum Group ("MP") entered a longterm agreement to develop floating solar based on Ocean Sun's proprietary technology, near shore and on inland reservoirs in Greece and Cyprus. During 2021, MP worked diligently to prepare the market for utility scale projects and to prepare for the construction of a demonstration system. Work with the demonstration system is progressing nicely and the plan is to construct a 2 MWp nearshore demonstrator. When built, the system will be the largest of its kind and pave way for larger installations in the future.

As one of EU's most southern countries, Greece has excellent solar irradiance which provides good yield for solar power investments. Further, Greece's National Energy and Climate Plan (NECP) has established ambitious renewable energy targets highlighting plans for 35% of the energy to be derived from renewable energy sources (RES) by 2030 and to phase-out lignite-based energy production by 2028. According to HELAPCO, a non-profit organization representing the major Greek PV companies, this implies an average of 400-500 megawatts (MW) of installed PV capacity per year until 2030. With long coast lines, islands and inland water reservoirs, this provides an excellent fit with floating solar.

Nearshore demonstrator in Yantai, China

Project update

In the end of September 2021 Ocean Sun signed an agreement with Sunneng Technology and String Capital for the construction of a 1 MWp demonstrator system in Yantai, in the Province of Shandong, China. The project is progressing well and orders for long lead items have been placed. The plan is to start construction during Q2. With support from the Yantai Economic and Technological Development Zone, there is also substantial potential for utility-scale projects on the site going forward.

This nearshore demonstration system is unique in China and will also create local awareness and qualify Ocean Sun for utility-scale installations with other parties in China, South Korea and Japan.

Project update

Sunseap Group is a solar energy system developer, owner, and operator in Singapore, with a pipeline of close to 10 GWac of solar energy projects across Asia . Its solar energy systems can be found on more than 3 ,000 buildings in Singapore, including public housing estates, as well as commercial and industrial buildings . Sunseap also operates in various territories across the Asia Pacific, including Vietnam, Cambodia, China, Taiwan, Japan, Thailand and Malaysia . Sunseap is part of EDP Renewables (Euronext : EDPR), a global leader in the renewable energy sector and one of the world's largest renewable energy producers .

"This project is another significant milestone for Sunseap as we continue to explore alternative methods to deploy solar PV systems in land scarce Singapore . Floating PV systems have the potential to generate more solar energy compared to traditional rooftop and ground -mounted solar PV systems . " – Says Frank Phuan , Business CEO and Co -Founder of Sunseap Group . He adds : "Ocean Sun's innovative floating PV system is highly efficient, robust and can be easily installed, and we look forward to collaborating on other projects in future . " He adds : "Ocean Sun's innovative floating PV system is highly efficient, robust and can be easily installed, and we look forward to collaborating on other projects in future . "

The goal is that this project will pave the way for utility scale developments in Singapore and Southeast Asia . The system will be the largest floating solar installation in the Singapore Strait and construction is scheduled during 2022 .

Magat dam pilot with Scatec owned SN-Aboitiz Power (SNAP)

Project update

The Magat Pilot will pass the 3-year anniversary mark in Q2 2022 and has gone through three typhoon seasons with strong winds and high precipitation without damage or other negative impacts to the structure. It is the largest and longest operational floating solar installation in the Philippines.

With comparable conditions on main installation and reference; the floating installation still demonstrates good production vs. the land-based reference system with ~10% higher output due to the cooling of the modules.

SNAP is following the performance of the system closely and views the pilot as a great success. SNAP's CEO, Joseph Yu, has announced that SNAP intends to expand the floating solar installation on the Magat Dam with 67 MWp1.

Project details

The 223 kWp demonstration plant was commissioned in June 2019 and is built on the Magat Dam, located in the middle of the Philippine typhoon belt. The system is designed to withstand wind-speeds of up to 275 km/h.

Market update

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Southeast Asia

• Rystad Energy has forecasted that Southeast Asia will be the dominating region for floating solar with a pipeline of projects amounting to 16 GWp
• As previously communicated, the Ocean Sun technology's unique possibility to withstand strong wind and larger waves positions us favorably for upcoming projects in the region.
• Ocean Sun continues to improve its position in the region and project discussions with important players are progressing well.

Americas

• The knowledge about floating solar in South America in general and Brazil in particular continues to increase. The country's pipeline continues to grow with both developers and power intensive businesses eying opportunities.
• Ocean Sun's collaboration with a local partner progress well and together we have targeted several smaller utility projects, 5-20MWp as well as larger utility projects +50MWp during 2022.

Northeast Asia

• NE Asia represents >70% of the installed capacity of floating solar to date and will continue to dominate the global market for years to come.
• Continued good dialog with several partners for utility scale projects in China. Most opportunities are near-shore and the Yantai demonstrator will be an important milestone for future contracts.
• South Korea authorities has postponed the Seamangeum project further and no development is likely during 2023.

EMA

• The Banja floater, now in operation with Statkraft in Albania, with expectations of adding a three 0.5MWp rings during the year - combined with the construction of Europe's largest near shore floating solar system in Greece, will provide important proof of concept for Ocean Sun in ongoing and future project dialogs in Europe.
• The installation outside of the Canary Islands, will test the Off-Shore applicability of the Ocean Sun FPV solution.
• General high interest for FPV in combinations with larger Floating wind parks
• We aim to build the first Ocean Sun system in Africa during 2022
• Increased FPV interest in Portugal, Spain, Italy, Netherlands and Germany

Ocean Sun is truly a global company with project discussions on all continents

Financials

• Profit and loss
• Balance sheet
• Cash flow
• Equity statement

Income Statement, unaudited
	Ocean Sun Group		Ocean Sun AS
NOK'000	Q1'2022	Q1'2021	Q1'2022	Q1'2021
Revenue	944	-	944	-
Contributions	779	1 579	777	1 578
Total revenue	1 723	1 579	1 721	1 578
Employee costs	(4 494)	(2 863)	(3 175)	(2 105)
Other operating exp.	(2 119)	(1 985)	(3 451)	(2 768)
Depreciation	(5)	(5)	(5)	(5)
Operating result	(4 894)	(3 273)	(4 910)	(3 300)
Net financials	69	(22)	74	(22)
Result before tax	(4 825)	(3 295)	(4 835)	(3 322)
Income tax	-	-	-	-
Result after taxes	(4 825)	(3 295)	(4 835)	(3 322)

Comments to income statement

Group revenue amounted to NOK 1.7 million in Q1'22 compared with 1.6 in Q1'21. The license revenue in Q1'22 is related to Greece and the agreement with MP Quantum signed in January.

Contributions consist of Skattefunn, grants from Innovation Norway and grants from EU the BOOST project.

Consolidated employee cost in Q1'22 was NOK 4.5 million compared with NOK 2.9 million in same Q1'21. End of Q1'22 the number of employees were 12 compared with 8 at the end of Q1'21. The group has 2 new employees in China and 2 in Norway.

Balance sheet

Ocean Sun AS			Ocean Sun Group
Unaudited	Audited		Unaudited	Audited
31.03.2022	31.12.2021	NOK'000 Assets	31.03.2022	31.12.2021
33	38	Office equipment	33	38
280	280	Investments in subsidiaries	-	-
313	318	Total fixed assets	33	38
0	0	Accounts receivables	-	-
9 113	10 679	Other receivables	9 084	10 761
		Cash and cash
73 291	76 530	equivalents	73 548	76 991
82 404	87 209	Total current assets	82 632	87 753
82 717	87 527	Total assets	82 665	87 790
		Equity and liabilities
76 222	81 057	Total equity	76 413	81 218
-	-	Non-current liabilities	-	-
1 182	2 578	Accounts payable	1 192	2 455
139	673	Taxes and public duties	208	673
5 174	3 219	Other current liabilities	4 850	3 445
		Total current
6 495	6 469	liabilities	6 251	6 573
6 495	6 469	Total liabilities	6 251	6 573
		Total equity and
82 717	87 527	liabilities	82 665	87 790

Comments to balance sheet per 31.12.2021

Cash and cash equivalents amounted to NOK 77 million as per 31.12.2021, of which NOK 0.8 million was restricted cash.

Equity ratio amounted to 92.4% and the Group had no interestbearing debt. The Group is well capitalized with available liquidity to support future growth.

Other receivables related to accrued revenue related to R&D projects as well as invoiced materials purchased on behalf of customer at cost.

Other current liabilities consisted of provisions for personnel and board expenses as well as prepayment of the EIC grant related to the BOOST project.

Cash flow statement

Cash development 01.10 - 31.12.2021

Consolidated cash flow from operations amounted to NOK -3.4 million in Q1'22. This is less than the result before taxes, mainly due to reduction in other current assets.

Total cash and cash equivalents as per 31.03.2022 amounted to NOK 73.5 million. The cash position of the company is sound.

Changes in equity (Unaudited)
NOK'000	Share capital	Share premium	Other Equity	Accumulated losses	Total
At 1st of January 2022	450	128 023	-	(47 255)	81 217
Currency translation differences	-	-	-	22	22
Profit/Loss for the period	-	-	-	(4 825)	(4 825)
Purchase of own shares	-	-	-	-	-
Share option program	-	-	-	-	-
At 31 March 2022	450	128 023	(49)	(52 058)	76 414

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