Scatec ASA

Investor Presentation • Nov 3, 2022

Third quarter 2022

Strong performance driven by the Philippines

CEO, Terje Pilskog & CFO, Mikkel Tørud

Disclaimer

The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ('relevant persons'). Any person who is not a relevant person should not rely, act or make assessment on the basis of this presentation or anything included therein.

The following presentation may include information related to investments made and key commercial terms thereof, including future returns. Such information cannot be relied upon as a guide to the future performance of such investments. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Scatec ASA or any company within the Scatec Group. This presentation contains statements regarding the future in connection with the Scatec Group's growth initiatives, profit figures, outlook, strategies and objectives as well as forward looking statements and any such information or forward-looking statements regarding the future and/or the Scatec Group's expectations are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements.

Alternative performance measures (APM) used in this presentation are described and presented in the third quarter 2022 report for the group.

Strong performance driven by the Philippines

• All-time high proportionate EBITDA of NOK 850 million (767)
• Philippines EBITDA increased 64% to NOK 375 million (228) driven by high production and power prices
• Construction activities progressing well in South Africa, Brazil and Pakistan
• Submitted net zero targets to SBTi and awarded A rating on ESG reporting from Position Green
• Announced sharpened strategy and new growth targets

1) EBITDA and other alternative performance measures (APMs) are defined and reconciled as a part of the APM section of the third quarter 2022 report on pages 36-39.

Production increased 7% from last year - driven by the Philippines - high availability across all operating power plants

Power production, GWh

Share of power production Q3'22

High production and power prices in the Philippines

• Production 37% above 5-year avg continued high spot prices
• Quarterly changes driven by hydrology and spot price variability
• Q4 production 30% above 5-year average at favourable prices
• 2H'22 EBITDA catching up for 1H'22 as expected

Power production, GWh

5

Construction progressing well in South Africa, Brazil and Pakistan - main purchase orders placed and high activity on sites

• Groundworks and construction of grid connection started
• +200 people on site

• Site clearance, levelling and fencing
• +500 people on site

• Site levelling, piling and roadworks

• +600 people on site

• Q3 D&C revenues of NOK 412 million representing 4% of initial contract value

• D&C gross margin of 10% in the quarter
• Remaining not recognised D&C revenues of NOK 9 billion*

6

*Remaining contract value based on currency rates per the end of the third quarter 2022.

Our strategy: Develop, build, own and operate renewable energy in emerging markets

Grow Renewables

Advance Green Hydrogen Optimise Portfolio

8

We target to invest NOK 10 billion and double Power Production EBITDA

Targets towards 2027

NOK 10 billion Equity investments¹

1.2x CoE² Project equity IRR

NOK+3 billion Power Production EBITDA³

1.5 GW Avg annual capacity additions⁴

(1) Committed equity for new power plant investments (2) Cost of Equity (3) Additional Annual Proportionate Power Production EBITDA generated from 10 BNOK Equity investment (4) Average gross capacity additions

Project pipeline and backlog of 16 GW across renewable technologies - 80% held in our focus markets

Focus on larger projects

• Average pipeline project size 350 MW
• Target average equity investment of NOK 500 million in projects

Financial review

Mikkel Tørud, CFO

11

Proportionate financials – all segments

NOK million
Revenues	Q3'22	Q3'21	YTD'22	YTD'21
Power Production	1,311	1,072	3,259	2,816
Services	82	69	227	194
Development & Construction	412	43	441	118
Corporate	13	11	35	31
Total	1,818	1,196	3,962	3,158
EBITDA
Power Production	907	823	2,014	2,186
Services	22	22	58	63
Development & Construction	-45	-53	-201	-167
Corporate	-34	-25	-107	-79
Total	850	767	1,764	2,004
EBIT
Power Production	616	551	402	1,466
Services	21	21	54	60
Development & Construction	-63	-105	-337	-222
Corporate	-40	-31	-128	-97
Total	534	436	-8	1,206

Revenues from Power Production from 2021 has been adjusted due to change in accounting policy, disclosed in note 10 in Q3'22 report

Q3'22 vs Q3'21

• Revenues increase based on higher power sales in the Philippines and D&C revenues from construction activity in South Africa, Brazil and Pakistan
• EBITDA increased based on improved Power Production and D&C performance partly offset by increased cost in Corporate
• EBIT increased with lower impairment of development projects in D&C partly offset by higher depreciation in Power Production driven by currency effects

Proportionate financials – Power Production

NOK million	Q3'22	Q3'21	YTD'22	YTD'21
Power production (GWh)	1,135	1,065	2,919	2,778
Revenues	1,311	1,072	3,259	2,816
Cost of sales	-210	-74	-622	-164
Gross Profit	1,101	999	2,637	2,651
EBITDA	907	823	2,014	2,186
EBIT	616	551	402	1,466
Cash flow to Equity	469	377	1,130	1,310
Cash flow to Equity % of EBITDA	52%	46%	56%	60%

Inflation protection: ~90% of Power Production EBITDA is either in USD/EUR, have partial or full inflation protection through local CPI adjustments, or is based on sales in the local power market (Philippines).

Q3'22 vs Q3'21

• Revenues increase based on higher sales & prices in the Philippines and foreign currency effects, partly offset by Ukraine and slightly lower production in South Africa
• Gross Profit optimisation of production vs contract sales impacting both revenues and cost of sales with net positive gross margin
• EBITDA increased in line with higher gross profit - stable EBITDA in % of gross profit
• 52% of EBITDA converted to Cash flow to Equity up from 46% last year

A solid financial position

• Available undrawn credit facilities NOK 2 billion
• Group* book equity of NOK 11.4 billion
• Solid long term cash flow supporting group level debt
  • LTM Power Prod. Cash Flow to Equity of NOK 1.5 billion
• Bridge to bond maturity extended to Q1 2024
  • Strong partnership with Nordea, DNB, Swedbank, BNP Paribas

(NOK billion)	Consolidated	Project level	Group level*	Total
Cash	5.5	2.3	3.1	5.5
Debt	-24.7	-15.0	-8.5	-23.5
Net debt	-19.2	-12.7	-5.3	-18.0

(*) Defined as 'recourse group' in the corporate bond and loan agreements, where

Consolidated financial position (NOK million)

13

Optimising cash flows during the construction phase

• Q3'22: Received cash payments of 20% and recognised 4% D&C revenues of initial contract value
• Revenue recognition based on percentage of completion following an S-curve
• Ensure positive working capital through favourable payment terms and trade finance
• Further liquidity optimisation by favourable debt terms - debt injected first and equity last in RMIPPP

EPC revenue recognition vs cash flow

Group level free cash up NOK 1.1 billion in Q3

• Total liquidity available of NOK 5.1 billion (including undrawn credit facilities)

Movement of cash in 'recourse group' as defined in the corporate bond and loan agreements.

Short term guidance

Power Production1)	Q3'22	Q4'22E	FY2022E
Production - GWh	1,135	1,030-1,130	3,950 – 4,050
EBITDA - NOK million	907	740-840	2,750 – 2,850

• 30% above average production in the Philippines in Q4'22
• FY2022 EBITDA increased by NOK 200 million reflecting Q3 performance, better Q4 performance in the Philippines and currency exchange rate development

Development & Construction

• Total remaining contract value for plants under construction (revenues) of NOK 9.0 billion with an expected gross margin of 10-12%
• D&C revenues based on "percentage of completion" progress following an "S-Curve" during 18-months construction period

Services & Corporate

• Expected Services 2022 EBITDA of NOK 70 to 75 million
• Expected Corporate 2022 EBITDA of NOK -140 to -145 million
• 16
• 1) Proportionate production volume based on production from plants in operations at the end of Q3'22. EBITDA based on currency rates at end of Q3'22.

Overview of change in net debt during the quarter

NOK billion	Q2'22	Repayments	New debt	Change in cash	Currency effects	Q3'22
Project level	-11.2	0.4	-1.7	0.4	-0.6	-12.7
Group level*	-5.9	-	-	1.0	-0.4	-5.3
Total	-17.2	0.4	-1.7	1.4	-1.0	-18.0

Project and Group level net interest bearing debt

• Repayments: Ordinary project debt repayments
• New debt: NOK 1.2 billion for RMIPPP + remaining NOK 0.5 billion PowerChina loan**
• Change in cash: Power production cash generation + Net EPC payments for construction
• Currency effects: 5% net increase of cash and debt in line with EBITDA guiding increase for FY 2022

(*)Defined as 'recourse group' in the corporate bond and loan agreements, where restricted cash is excluded.

18 (**) The EUR 44 million remaining portion of the Power China loan was reclassified to interest bearing debt in Q3 and is supported by a parent company guarantee by Scatec ASA. EUR 22 million will be paid in Q4 2023 and EUR 22 million in Q2 2025.

Power Production financials – proportionate

	Q3'22	Q2'22	Q3'21	2021
Power production (GWh)
Solar & Wind	542	523	551	2,002
Hydro the Philippines	339	135	214	729
Hydro Laos and Uganda	254	259	299	1,092
Total	1,135	916	1,065	3,823
Revenues (NOK million)
Solar & Wind	530	476	568	1,971
Hydro the Philippines	615	376	335	1,310
Hydro Laos and Uganda	166	163	170	608
Total	1,311	1,015	1,072	3,889
EBITDA (NOK million)
Solar & Wind	383	336	440	1,521
Hydro the Philippines	375	133	228	874
Hydro Laos and Uganda	149	148	155	554
Total	907	617	823	2,949

¹⁹ Revenues from Power Production from 2021 has been adjusted due to change in accounting policy, disclosed in note 10 in Q3'22 report Revenues and EBITDA for Solar & Wind include other asset ownership expenses in the Power Production segment

Plants in operation
		MW	interest
Theun Hinboun, Laos		525	20%
Magat, Philippines		388	50%
Benban, Egypt		380	51%
Upington, South Africa		258	46%
Bujagali, Uganda		255	28%
Quantum Solar Park, Malaysia		197	100%
Apodi, Brazil		162	44%
Progressovka, Ukraine		148	100%
Binga, Philippines		140	50%
Guanizuil IIA, Argentina		117	50%
Ambuklao, Philippines		105	50%
Kalkbult, South Africa		75	45%
Dreunberg, South Africa		75	45%
Agua Fria, Honduras		60	40%
Chigirin, Ukraine		55	100%
Boguslav, Ukraine		54	100%
Rengy, Ukraine		47	51%
Redsol, Malaysia		47	100%
Jordan, Jordan		43	62%
Linde, South Africa		40	45%
Mocuba, Mozambique		40	53%
Dam Nai, Vietnam		39	100%
Los Prados, Honduras		35	70%
Kamianka, Ukraine		32	61%
Czech, Czech Republic		20	100%
Maris Hydro, Philippines		9	50%
Release		20	100%
Asyv, Rwanda		9	54%
Total		3,375	52%

Under construction	Capacity	MW	Economic interest
Kenhardt, South Africa Mendubim, Brazil Sukkur, Pakistan Release Philippines		540 531 150 26 20	51% 33% 75% 100% 50%
Total		1,267	47%
Project backlog	Capacity MW		Economic interest
Tunisia South Africa Egypt Total	H 2	360 273 260 893	51% 51% 52% 51%

Capacity MW	Economic interest	Under construction	Capacity MW	Economic interest	Project pipeline	Capacity MW	Share in %
		Kenhardt, South Africa	540	51%	Solar	5,504	37%
		Mendubim, Brazil	531	33%	Wind	6,220	41%
		Sukkur, Pakistan	150	75%	Hydro	2,519	17%
		Release	26	100%	Green Hydrogen	500	3%
		Philippines	20	50%	Release	300	2%
		Total	1,267	47%	Total	15,043	100%