Unlocking a new era of solar power

Unlocking a new era of solar power

18.08.2021

Rogaland Investor Forum

Disclaimer

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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 Norsk Solar AS or any company within the Norsk Solar 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 Norsk Solar 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.

The following presentation contains unaudited financial information

Alternative performance measures (APM) used in this presentation are described and presented in the 1st H report of the group for 2021.

–– Norsk Solar

18.08.2021


Org.nr. 819 113 912

[email protected]

Norsk Solar Stavanger (HQ) Oslo

Løkkeveien 107

N-4007 Stavanger

Norway

Phone: +47 455 00 840

norsksolar.com

Møllergata 23-25

N-0179 Oslo

Norway

Øyvind L. Vesterdal

Presenting

Helga CotgroveChief Executive Officer

[email protected]

Chief Financial Officer

[email protected]

https://norsksolar.com/

Overview, Highlights & UpdateØyvind L Vesterdal – CEO 10 min

FinancialsHelga Cotgrove – CFO 10 min

Market & OutlookØyvind L Vesterdal – CEO 10 min

Q&AØyvind L Vesterdal (CEO) and Helga Cotgrove (CFO)

10 min

Agenda

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Overview, Highlights & Update

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Øyvind L. Vesterdal – CEO

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About Norsk Solar

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Established in Norway, with a global reach.

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Norsk Solar develops, builds, owns, and operates large-scale solar PV power plants in emerging markets – maximizing our impact on sustainability and economic growth.

–– Norsk Solar offices –– Active markets

• Norsk Solar is a fast-growing solar energy company

headquartered in Stavanger, Norway

• A vertically integrated independent power producer,

founded in 2017

• Listed on Euronext Growth since April 2021

• Competent team with extensive experience

Featured partners:

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8

Development Finance Construction Operation Asset management

• Project and business case

development

• Site development, land &

project rights, licenses &

permits, grid connection

• PPA negotiation

• Power production

• Asset management

• Financial optimization

–– Norsk Solar

• Debt and equity financing

• Due diligence (technical,

legal, integrity and

financial)

• Financial modeling,

costing and cash flow

management

• Engineering, procurement,

construction and

installation

• Project management

• Quality assurance

• Operations and

maintenance

• Maximize uptime and

performance

• Asset integrity

Solar as a service - providing clean and reliable power while significantly reducing clients overall power cost

Norsk Solar is an experienced organization that secures value in all phases of a project and ensures sustainability alongside financially and technically viable projects.

From origination and early-stage development, through structuring of financial, technical, legal and regulatory matters, Norsk Solar will secure construction and operation

for solar PV projects that will benefit both local communities and secure growth for the organization.

Our value chain

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Power plants in operation

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• Gharo, Pakistan

• Customer: K Electric

• COD December 23, 2019

• Capex USD 46,6 million

• Debt and equity 75:25

• 13 year debt tenor

• Norsk Solar ownership 10%

• PPA duration 25 years

• Semypolky, Ukraina

• Utility

• COD July 1, 2020

• Capex EUR 8,9 million



• Norsk Solar ownership 45%

• PPA duration 10 years

• 10 rooftop sites in Vietnam

• Customer: Central Retail (C&I)

• COD Q4 2021 (under construction)

• Capex USD 8,2 million



• Norsk Solar ownership 100 % -> 28 %

• Long-term PPA

Pakistan

50 MW

Ukraine

9 MW

Vietnam

11 MW

–– Norsk Solar

18.08.2021


Commercial & industrial market

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Benefits inthe Commercial and industrial(C&I) market

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No capital investment for the customer

Creditworthy clients

Significant savings on their electricity bill

No need to wait for government programs

Fast deployment creates immediate savings

Short time from prospect to powerplant in operation

Lower carbon footprint and increased sustainability metrics

Potential to implement complimentary services (Storage and services)

1 1

2 2

4

3 3

4

–– with Norsk Solar

For the client For Norsk Solar

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Joint investment platform with Finnfund

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Nordic Impact Cooperation AS

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• Joint investment platform with Finnfund

• Securing additional equity financing for projects in developing countries

• Earlier stage funding than traditional debt financing

• Construction phase versus commercial operation phase (COD)

• Possible due to Norsk Solar decision gate and strong due diligence

process

• Initial target of NOK 150 million, potential to grow to NOK +1 billion

Nordic Impact Cooperation AS

Value added

to SDGs by

the platform:

–– Platform and project structure

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2021 first half highlights

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1H Highlights

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Listed on Euronext Growth Oslo

Established partnership with Finnfund: Nordic Impact Cooperation AS

Construction started in Vietnam – despite COVID

Major development in Brazil- first fully fledged NSOL regional hub

1

2

4

3

–– Norsk Solar

18.08.2021


1H key highlights

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International expansioninto key markets5

1

2

3

4

Europe

– Market entry in Hungary and North Macedonia

– New legal entity in Hungary

– Term sheet for PPA with off-taker in North

Macedonia for first 10 MW of larger portfolio

LATAM

– Market entry and new country

unit in Brazil

– Development agreement with

off-taker signed for first 37 MW

in a larger portfolio

Africa

– Country unit under establishment,

reinforcing Sub-Saharan Africa

activities

– LOI in Morocco with one of the

world’s largest retailers

Asia

– Construction in Vietnam ongoing with

flagship C&I off-taker

–– Norsk Solar

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Financials

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Helga Cotgrove– CFO

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1H 2021 – Norsk Solar Group P&L

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+ 901%Increased revenue

- 144%Decreased EBITDA

• Group Revenue ~NOK 7 million for 1H 2021, 1H 2020 had no plants in operation

• Increase in operating cost reflects increased activity

• Listing/ one-off costs influencing EBITDA - NOK 6,3 million

• Listing Bonus to management, recruiting cost, one- off fee to stock exchange etc.

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+ 6New employees

All figures in 1000 NOK 1H 2021

(Unadited)

1H 2020

(Unaudited)

FY 2020

(Audited)

Revenue 6,775 752 8,375

Other operating income 0 1,750 3,281

Total operating income 6,775 2,502 11,655

Cost of goods 2,503 1,216 5,292

Payroll expenses 9,768 3,103 7,846

Depreciation 4,980 0 7,041

Other operating expenses 4,902 1,033 3,926

Total operating expenses 22,152 5,351 24,105

Operating profit -15,377 -2,849 -12,449

EBITDA -10,398 -2,849 -5,408

EBITDA adjusted for various

one off -4,115 -2,849

1H 2021 – Norsk Solar Group balance sheet

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• Total available cash ~NOK 130 million.

• Private placement of NOK 140 million prior to listing

• 5 million Euro in unused debt facility

• NOK 40 million in non - recourse debt in Ukraine

• Inventory is project under development

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All figures in 1000 NOK 6/30/2021

(Unaudited)

12/31/2020

(Audited)

Total fixed assets 69,406 73,546

Inventory 4,046 2,638

Total receivables 6,453 5,217

Cash and cash equivalents 143,227 27,032

Total assets 223,131 109,274

Total shareholders equity 174,343 54,659

Non-controlling interest 15,606 19,253

Total non-current liabilities 43,945 44,328

Total current liabilities 4,844 10,288

Total equity and liabilities 223,131 109,274

78,1% 50,0%Equity ratio:

Flow of funds

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Income streams for Norsk Solar AS

• Development and construction (D&C) revenue and margin

• D&C revenue is being eliminated in group financials due to intercompany

eliminations

• D&C revenue expected to average 50-70% of project capex dependent on Norsk Solar’s

role in the project

• D&C margins 8-15%

• Dividend from plants in operation (replaced by consolidated numbers

from the subsidiaries in the group accounts)

• Built on long term recurring revenue from the subsidiaries/projects

• Power production: Annual recurring revenue for 15+ years,

average IRR on equity in projects 12-17%

Financing

• Equity

• Equity from 3rd parties (i.e. Nordic Impact Cooperation AS)

• Non-recourse financing from project lenders, triggers at Commercial Operation Date or

earlier

• Bridge financing in the construction phase, i.e. bank financing at parent level or

subsidiary/project level

• Sale of ownership of plants in operation

• Capital discipline is KEY

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Market outlook

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Øyvind L. Vesterdal – CEO

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Solar Market Growth

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Source: Bloomberg New Energy Outlook 2021

Getting on track for net-zero emissions in 2050 means deploying commercially available abatement technologies in each sector this decade. According to BNEF solar power on its own

should reach per annum an installed capacity of 455 GW (3.6x 2020) per year till 2030. Solar installations in 2020 alone were of 127 GW.

As solar is becoming the LCOE source it’s deployment for supplying more power to an electrified world (i.e. 35m of EVs added on average per year till 2030) and producing green

hydrogen will drive further growth on solar installation up to 632 GW/annum (4.9x 2020) until 2050 as per the "green scenario" of BNEF.

IEA expect annual solar PV expansion to reach 145 GW in 2021 and 162 GW in 2022, breaking records and accounting for almost over 55% of all renewable energy expansion this year

and next.

The latest IPCC report proves the need for and the urgency of increasing renewables

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Source: IEA

Green Scenario 2050 - BNEF Net renewable capacity additions by technology, 2019-2022

108.6

134

145.3

161.6

0

20

40

60

80

100

120

140

160

2019 2020 2021 2022

GW

Solar PV

59.5

113.6

82.877.5

2019 2020 2021 2022

Wind

14.220.6

32.9 32.1

2019 2020 2021 2022

Hydro

9.4 10.1 8.9 8.4

2019 2020 2021 2022

Other renewables

Solar Market (C&I)

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Source: IEA Source: IEA

Corporate power procurement had another record-breaking year in 2020, with a 25% year-on-year increase credited to declining costs and PV rates more competitive than

utility electricity bills

While the United States remains the world’s largest corporate PPA market, activity in Europe and Asia-Pacific region is also growing

In Latin America, Brazil continues to be the largest corporate PPA market with an increasing number of projects relying on long-term contracts outside the government’s

auction scheme

Shifting to renewable energy is not only necessary and possible, but it also makes business sense (REN 21)

Corporate PPA volumes by region, 2015 - 2020 Corporate PPA volumes by technology, 2015 - 2020

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4.0x 4.3x

Featured markets

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• C&I market upwards of 1 GW and growing fast

• Norsk Solar market entry with solid partners and country

unit

• Country pipeline exceeding initial targets

Brazil

100+ MW pipeline

Vietnam

50 MW+ pipeline

North Macedonia

100 MW pipeline

–– Norsk Solar

18.08.2021


• Skyrocketing solar, but utility have plateaued for now

• C&I market not dependent on government utility programs

• New project developments in line with 11 MW project in

construction

• Electricity market is dominated by fossil fuels

• Unique business model with merchant and C&I

• First project of 10 MW in advanced development stage

Project pipeline

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Development*

453 MW

60% C&I / 40% Utility

Brazil

Colombia

Ecuador

Honduras

Hungary

Maldives

Morocco

Nicaragua

Nigeria

North Macedonia

Pakistan

South Africa

Vietnam

Zimbabwe

Construction

11 MW

100% C&I

Vietnam

*Opportunity pipeline of more than 2 GW not included

On schedule for 2021 target of 100MW and 2025 target of 2GW and NOK 3Bn revenue

– based on current pipeline and rapidly increasing C&I portfolio

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Key highlights

/

/

/

Utility projects developments delayed by covid, C&I sector largely unaffected

Significant increase in C&I projects compared with the utility market

Strong pipeline within C&I – this is the future and key focus for NSOL growth

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The solar market is booming

Solid infrastructure investments with long-term recurring revenues

Norsk Solar is uniquely positioned globally within the commercial and industrial («C&I») segment in emerging markets

–– Norsk Solar

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Summary

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Unlocking a new era of solar power

18.08.2021


Org.nr. 819 113 912

[email protected]

Norsk Solar Stavanger (HQ) Oslo

Løkkeveien 107

N-4007 Stavanger

Norway

Phone: +47 455 00 840

norsksolar.com

Møllergata 23-25

N-0179 Oslo

Norway

Øyvind L. Vesterdal

Q&A

Helga CotgroveChief Executive Officer

[email protected]

Chief Financial Officer

[email protected]

https://norsksolar.com/

Unlocking a new era of solar power

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