Saga Pure — Investor Presentation 2021

May 9, 2021

First quarter 2021
presentation

Bjørn Simonsen, CEO

May 10, 2021

Our mission: pure growth

• $\rightarrow$ Unparalleled deal flow
• $\rightarrow$ Technical and financial expertise
• $\rightarrow$ Leveraging Ferncliff group's capabilities
• $\rightarrow$ Listed on Oslo Stock Exchange (main list)

We seek out, and invest in, the solutions that contribute to a greener future

Q1 highlights

3 Strategic investments

148 MNOK

Net profit from
operations¹

16% Return on equity

833 MNOK

Cash balance

¹ Of which 57 MNOK are realized profits from investments

Subsequent events

• Listing of Bergen Carbon Solutions on April 19th $\bullet$
• Announced the addition of Jørgen Kopperstad and $\bullet$ Rob Stevens to the Saga Pure team to strengthen industry expertise within sustainable maritime and ammonia solutions
• Completed investment in Heimdall Power $\bullet$
• Cash position of NOK ~750 million per 30 April 2021 $\bullet$

Combining industrial and financial expertise

Core team

10+ years' experience from the hydrogen sector, incl. key positions in Nel ASA from public listing in 2014 until 2020

MSc in Process Engineering from the Norwegian University of Science and Technology (NTNU)

Jørgen Festervoll VP Renewable Opportunities

20 years experience as a management consultant within the renewable energy sector

MSc in Business Administration from the Norwegian School of Economics and Business Administration (NHH)

Espen Lundaas Chief Financial Officer

20+ years experience from the finance sector as CFO in the Ferncliff Group, incl. M&A, IPO, corporate/ board/strategy development

MBE from Norwegian School of Management BI with major in Finance

Jørgen Kopperstad VP Maritime Opportunities

A decade worth of experience from the maritime sector, specialized in low- and zero-emission technologies for ship designs.

MSc in Renewable Energy Technology from the University of Bergen (UIB)

Florian Melcher Investment Manager

14 years' experience from the finance sector as equity sales and analysis, specializing on renewable energy.

MSc in Finance from the Norwegian School of Economics (NHH)

Jan Frode Andersen Investment Manager

9+ years experience from Ferncliff owned companies (M&A,IPO, Strategy). 5 years in Operations at Tandberg/Cisco

MBA from Norwegian School of Management BI & BS from Univ of Arizona, Tucson (Hons)

Rob Stevens VP Ammonia Opportunities

20+ years experience in ammonia production and application, specializing in clean ammonia energy and fuel.

PhD from Delft University of Technology

Influencing factors

Megatrends driving market opportunities

... and play a part in disrupting the markets - along with other unforeseen events

• At irregular intervals the markets are "disrupted" - $\bullet$ both by developments we can see coming (e.g. megatrends), but also by completely unexpected events, referred to as "black swans"
• The underlying factor causes the need for systems $\bullet$ to find a new equilibrium
• Markets respond to disruptions with varying $\bullet$ degrees of volatility and repricing, wherein also lies opportunities

".disruption does not come from technologies and business models alone. It can equally be unleashed by national elections, climate disruptions - or a pandemic" EY report on Megatrends, 2020

SAGA PURE

Was 2020 a big, fat green swan in disguise?

COVID-19 and the migration to the next S-curvel

Investment space

Renewable energy

• Investments in renewables and batteries need to be USD $\bullet$ ~400 billion/year until 2050 to meet the goals of the Paris Agreement (1)
• Global wind and solar capacity alone is expected to $\bullet$ grow almost 9x from 1 330 GW in 2019 to 11 830 GW in 2050 $(1)$
• Annual power grid investments set to grow from roughly $\bullet$ USD 235 billion in 2020 to USD 636 billion by 2050 (1)
• 42% of annual grid spending by 2050 will be in digitization $\bullet$ of the grid, more than a doubling of today's levels (1)
• Enel offers a prime example of how digitalization can $\bullet$ increase operational efficiency and improve quality of service for a grid owner or operator (2)

SAGA PURE

• In just ten years, Enel reduced interruption by 65%, through an ambitious digital investment strategy(2)

Global annual electric grid investment USD billion

Circular economy

• The world generates 2 billion tonnes of municipal solid $\bullet$ waste annually of which only 13,5 % is recycled¹
• The global production of plastics is expected to grow from $\bullet$ 268 million tonnes in 2019 to 1 124 million tonnes in 2050^2,3
• Only 14 % of plastic packaging is currently collected for $\bullet$ $recylcing²$
• By 2050, there could be more plastics than fish in the sea $\bullet$ on a weight basis²
• The main solutions for plastic waste today are landfills, $\bullet$ incineration/energy, mechanical recycling and chemical recycling

$2%$ $2%$ Food and green $12%$ $\blacksquare$ Glass $Mert$ $\blacksquare$ Other $44%$ $17%$ • Paper and cardboard $\blacksquare$ Plastic Rubber and leather $14%$ 4 % 5 % $Wood$

Global waste breakdown by type¹

SAGA PURE

• A price on carbon is essential to reduce the global carbon footprint and for investors to assess investments opportunities and risk
• Carbon prices must rise to USD 160 per ton $CO₂$ by 2030 in $\bullet$ order to stop global temperatures from rising above the 1.5° $target²$
• Carbon is getting hot: early May '21 the price of carbon in the $\bullet$ EU exceeded EUR 50 (USD 60) per ton $CO₂$ for the first time
• The Norwegian government recently proposed to triple the $\bullet$ $CO₂$ tax from EUR 57.5 per ton $CO₂$ to EUR 195 by 2030
• Cost for carbon capture and storage (CCS) ranges from 140 $\bullet$ to 450 EUR/ton depending on $CO₂$ source, capture technology and storage solution³
• Our take: avoided $CO₂$ is best, followed by Carbon Capture $\bullet$ and Use (CCU), then CCS

Hydrogen

• Hydrogen has the potential to replace most of the coal, oil and $\bullet$ natural gas
• Storing hydrogen is tricky 1 kg of hydrogen takes up 11,000 $\bullet$ liters at atmospheric pressure, ~43 at 350 and ~25 at 700 bar
• If hydrogen is cooled to 20 K, or -253° C it turns into liquid and $\bullet$ density increases drastically, with 1 kg of hydrogen taking up $~14$ liters
• Issues with liquid hydrogen: $\bullet$

SAGA PURE

• Energy demanding: Currently ~12 kWh/kg to liquefy potential to reduce to 6.4 kWh/kg through scale & updated design³
• Due to challenges with keeping gas cool, boil-off rates range from 0.1 - 1% per day depending on tank size/system⁴
• Potential to eliminate by employing active tank cooling (ICT)
• Current global liquefaction capacity is less than 400 tpd, $\bullet$ dominated by US (215), Canada (80) and Japan (26), Europe (20), several expansion projects announced (~100 tpd)⁵

"Green hydrogen is like smartphones pre-2007." Bank of America (2020)

Maritime

• Ships are the most energy efficient transport alternative, $\bullet$ moving about 90% of world trade while generating about 3% of total global GHG-emissions
• IMO with target to reduce emissions from international $\bullet$ shipping by at least 50% by 2050 compared to 2008 levels²
• Maritime sector needs to be at 5% zero emission fuels by $\bullet$ 2030 to enable decarbonization in line with Paris goals¹
• Norway ambition to reduce the GHG emissions from domestic shipping and fisheries by at least 50% by 2030
• In 2019, fisheries and domestic shipping in Norway released 3 million tonnes $CO₂$ e
• The entire maritime sustainability toolbox is needed $\bullet$

"... technological innovation and the global introduction of alternative fuels and/or energy sources for international shipping will be integral to achieve the overall ambition."

International Maritime Organization, 2020

PURF

SAGA

250 200 150 100 50 $\sqrt{ }$ LNG Battery LNG Battery LNG Battery Norway ROW Europe

■2020 ■2026

Sources: 'Getting to Zero coalition 2020, ²https://www.imo.org/en/MediaCentre/HotTopics/Pages/Reducing-greenhouse-gas-emissionsfrom-ships.aspx, emissions in 2008 were 794 million tons, in 2018 1.1 gigatons, ³https://www.regjeringen.no/no/dokumenter/meld.-st.-10-20202021/id2788786/?ch=4, ⁴DNV GL, Alternative Fuels Insight (november 2020).

Number of battery powered seagoing and planned vessels⁴

Ammonia

SAGA

$PIIRF$

• Existing market 180 million MT $NH₃$ of which 160 is captive use $\bullet$ and 20 is traded (40 out of 180 non-fertilizer)¹
• To reach goal of 5% zero emission maritime fuel by 2030 $\bullet$ ammonia demand for maritime sector alone can reach ~15 million MT if 50% market share is assumed²
• 25% of the 100+ sustainable shipping fuel projects $\bullet$ announced recently are ammonia fuel related³
• Over 5 million MT clean (green&blue) ammonia production $\bullet$ projects announced so far⁴
• Energy consumption to produce ammonia is >95% for $H_2$ $\bullet$ production and the remaining for the $N_2$ /ammonia part
• Ammonia as energy carrier and direct use to power could $\bullet$ grow from 3 million in 2030 to 30 million MT by 2050 (Japan)⁵

Projected ammonia demand toward 2050

Sources: ^IFertilizer Handbook 2018, ²Getting to Zero coalition 2020, ³Global Maritime Forum, ⁴Saga Pure screening public announcements, ⁵Meti Japan 2021

Investing in early stage as well as established players

Our investment approach

Private, early-stage companies

Active ownership, help develop companies to $\bullet$ SUCCESS

Listed companies (financial investments)

• Strategic investments $\bullet$
• E.g. IPOS
• Portfolio management $\bullet$
• Building a portfolio of listed companies $\bullet$

Limits to (green)
|growth?

Feb 16 we asked: Is there a green bubble in the making?

SAGA PURE

Source: Saga Pure & Bloomberg

Current status: We are in a green correction

SAGA PURE

Source: Saga Pure & Bloomberg

Many greentech companies dropped $20 - 50\%$ in Q1 – what now?

• $\mathbf{1}$ . Renewable energy is here to stay - and will cover our future energy needs
• 1. Although hundreds of billions are invested annually, the transition has just begun
• Public funds are being channeled into the sector, $3.$ and policies are affecting the flow of private capital
• 1. Cheap energy, energy storage and transformation will be enablers for greentech, just like cheap processing power and data storage were for IT
• Only the strongest and smartest companies will still 5. be here ten years from now
• 1. It's not too late to join the party

Investment highlights

Horisont Energi

Horisont Energi is a Norwegian energy company focused on developing blue hydrogen and ammonia projects as
well as innovative solutions for carbon storage.

Investment NOK 35 million (IPO Jan'21)

Market value of Saga Pure position of Status NOK 100 million per 8. May 2021

Involvement Board position

HIGHLIGHTS

Horisont energ

Short listed for IPCEI-project support

Received grant of 10 MNOK from Enova to develop the Barents blue project

Signed agreements with key partners to realize the project

Pryme

COMPANY & INVESTMENT DETAILS

Pryme is using a modified pyrolysis process which
converts waste plastics into pyrolysis oil which will be
further refined downstream for production of new plastics.

Investment NOK 30 million (IPO Feb'21)

Market value of Saga Pure position of
NOK ~35 million per 8. May 2021 Status

Successful listing of BCS

COMPANY & INVESTMENT DETAILS

Bergen Carbon Solutions - uses innovative technology to produce carbon nanofibers from $CO₂$ at a fraction of the energy consumption of conventional production methods and without any associated emissions. Listed on Euronext Growth, first trading-day on April 16th.

• Investment Subscribed NOK 30 million pre-IPO, subscribed for NOK 15 million in IPO, post-IPO ownership share of
  ~21%. Option to invest another NOK 30 million at share price of NOK ~6/share
• Market value of Saga Pure position of NOK ~219 Status million per 8. May 2021

Involvement Actively involved through board position

Heimdall Power

COMPANY & INVESTMENT DETAILS

Heimdall Power offers a rapid transition to fully digitized
electric grid assets with patented low-cost sensors and software portfolio.

• Subscription of NOK 75 million in a gross
  NOK 155 million private placement of Investment new shares
• Allocated shares corresponding to an Status ownership of 16.5%
• Involvement Actively involved through board position

ICT

COMPANY & INVESTMENT DETAILS

IC Technologies is developing storage and distribution
solutions for cryogenic gases with focus on liquid hydrogen.

• Subscribed NOK 30 million in a NOK 35 Investment million private placement, option to
  invest another NOK 30 million within 18 months
• Ownership of 32.6%¹ Status
• Involvement Actively involved through board position

Featured investment: Heimdall Power

Summary and
outlook

Outlook: bumpy, green road ahead

Renewable energy deployment expected to continue to grow

Increasing consciousness
and focus around eco-

friendly solutions

|--|

Strong policy measures are
being put into place to further stimulate green growth

Currently evaluating a
number of investments in companies that can take a leading position in their field

Maintaining a solid cash
position to ensure financial robustness and flexibility

High focus going forward on building an organization with high industry expertise

seek and undestroy

www.saga-pure.com