Orron Energy Ab · OMXSTO:ORRON
Orron Energy Ab — Q4 2024 Earnings Presentation
39 slides from Orron Energy Ab's earnings presentation, Feb 12, 2025
Slide 1: Capital Markets Day 2025
Orrön Energy Capital Markets Day 2025 12 February 2025
Slide 2: Speakers and Agenda
Orrön Energy Capital Markets Day 2025 Speakers Agenda Introduction Daniel Fitzgerald Moderator Nordic overview Jonas Dahlström Greenfield development overview Axel Wikner Daniel Fitzgerald CEO Espen Hennie CFO Financial update Espen Hennie Jenny Sandström Communications Lead Concluding remarks Danie
Slide 3: Introduction
Introduction OE00014 p09 02.23 3
Slide 4: This is Orrön Energy
This is Orrön Energy Part of the entrepreneurial of companies 380 MW 40 GW Organic growth across the full >100 MEUR Producing assets Greenfield pipeline lifecycle Liquidity headroom Delivering long-term High return on capital Value creation from Fully financed cash flow via project sales development
Slide 5: 2024 Highlights
Orrön Energy 2024 Highlights Power generation Reached Ready-to-Permit on first UK project, expected 907 GWh soon for first German projects Revenues 42 MEUR Added (1) 50 GWh EBITDA 10 MEUR long-term annual power (2) generation through acquisitions At 34 EUR/MWh(3) Delivered in line with Low net debt
Slide 6: Year-on-Year Growth through Acquisition; 2025 outlook
Orrön Energy Year-on-Year Growth through Acquisition 2025 outlook Power generation 1,050 high 907 900 low 765 ~85% in high priced regions GWh FI Production per price region 380 SE4 360 MW 251 installed 265 capacity (1) SE3 66 SE2 2022 2023 2024 2025 2025 (1) Excludes Leikanger OE00040 p09 02.25 6
Slide 7: Value Creation through Greenfield Development
Orrön Energy Value Creation through Greenfield Development 40 GW Greenfield pipeline created organically 1.9 GW Battery storage UK solar and battery project in sales process Solar 150 MW German projects awaiting final municipality approval UK Grid Reform and Clean Power 2030 Action Plan creates 4 GW
Slide 8: Attractive Returns for UK and German Development Projects
Orrön Energy Attractive Returns for UK and German Development Projects Solar is the cheapest available technology Strong electricity prices and and is ideally positioned to meet low LCOE support high returns ambitious UK and German targets on invested capital Floating offshore 125 wind 125 Gas fired
Slide 9: Strong Balance Sheet Underpinned by Long Life Assets
Orrön Energy Strong Balance Sheet Underpinned by Long Life Assets Operating assets with Delivering long term With over 100 MEUR low FCF breakeven annual cash flow liquidity headroom 30 70 Revenues 170 4 Interest (1) 26 9 G&A Liquidity 50 headroom EBITDA EUR/MWh 44 FCF MEUR MEUR 40 30 24 65 17 Opex 2
Slide 10: Sustainability is at the Core of our Business
Orrön Energy Sustainability is at the Core of our Business Mitigating climate change Carbon neutral across our operations(1) Environmental Safe protection operations 2 TWh clean energy produced since inception 10% Zero biodiversity net gain for UK projects 40 GW pipeline of renewable material HS&E i
Slide 11: Markets Continue to Evolve as the Energy Sector Transforms
Orrön Energy Markets Continue to Evolve as the Energy Sector Transforms Electricity price 160 Spot prices increasing in Q1 2025 120 across all countries EUR/MWh Ancillary services on MLK and 80 Karskruv provides additional revenues Voluntary curtailments implemented to 40 mitigate impact of negative
Slide 12: 2025 Outlook
Orrön Energy 2025 Outlook 2025 Outlook Production 900-1,050 GWh Operating costs 17 MEUR G&A expenditure(1) 9 MEUR Sudan legal costs 7 MEUR Capital expenditure 12 MEUR (1) Excluding Sudan legal costs and non cash items OE00040 p12 02.25 12
Slide 13: Nordic overview
Nordic overview OE00014 p04 01.23 13
Slide 14: Nordic Business at a Glance
Orrön Energy Nordics Nordic Business at a Glance 1 GW pipeline of wind, solar and battery projects • Focussed on technologies with the lowest levelised cost of energy • Organically grown projects enable high return on investments Greenfield >500 GWh acquired since inception, 50 GWh in 2024 M&A • Add
Slide 15: High Quality Portfolio of Diversified Assets
Orrön Energy Nordics High Quality Portfolio of Diversified Assets Long term annual 1,000 GWh 2024 availability 97% Average asset life ~8 years production(1) Näsudden Karskruv Rest of Sweden MLK hub SE4 SE3 SE2, 3 & 4 FI 290 GWh 168 GWh 342 GWh 200 GWh 86 MW 60 MW 168 MW 66 MW 20 WTGs 39 WTGs 141 WTG
Slide 16: Nordics Power Generation
Orrön Energy Nordics Power Generation 2024 production 907 GWh 2025 production estimate 50 GWh Curtailment 900-1,050 GWh Weather impact 40 GWh high 460 low 447 378 387 Includes provisions for voluntary curtailment and variation in wind speeds GWh 251 H2 H1 H2 H1 H2 H1 H2 2022 2023 2024 2025 estimate
Slide 17: Lifecycle Optimisation - Maximising the Value of our Assets
Orrön Energy Nordics Lifecycle Optimisation - Maximising the Value of our Assets 2024 highlights Operational Implementation of excellence ancillary services and Optimised use of assets voluntary curtailment on to enhance profitability majority of porfolio Life extension Large-scale proactive Maintai
Slide 18: Powering Sustainable Growth
Orrön Energy Nordics Powering Sustainable Growth Foundation for long-term 1 GW pipeline originated organic growth through new in the Nordics projects, life extension and repowering Project status (MW) Technology breakdown (MW) Ready-to-Permit or later 10% Land under BESS Wind 30% exclusivity 60% Lan
Slide 19: Platform for Future Production Growth
Orrön Energy Nordics Platform for Future Production Growth ~1,000 GWh production & ~100 MW battery 75 MW 100 MW Permitting ongoing Wind measurement Land under campaign in 2025 exclusivity SE1 100 MW 50-100 MW Land under Land secured exclusivity FI SE2 75 MW Land secured 30 MW Land secured SE3 Grid i
Slide 20: Greenfield development overview
Greenfield development overview OE00013 p18 02.23 20
Slide 21: Greenfield Pipeline - From Vision to Reality
Orrön Energy Greenfield Greenfield Pipeline - From Vision to Reality Successfully established a 40 GW pipeline RtP achieved for Ten projects maturing 2025 1.9 GW UK solar and towards RtP battery project Secured over 150 MW in Germany 5,000 acres of land awaiting municipality approval 2023 Business e
Slide 22: Sales Process Initiated for East Midlands Project
Orrön Energy Greenfield - UK Sales Process Initiated for East Midlands Project Large-scale project with capacity of 1.4 GW of solar and 500 MW of battery Grid connection of 1 GW of export capacity and 500 MW of import capacity Binding land agreements in place for 3,200 acres Ongoing grid reform and
Slide 23: East Midlands Project - Development Highlights
Orrön Energy Greenfield - UK East Midlands Project - Development Highlights Attractive location Optimised layout Reduced development with flat topography, utilising lowest cost and construction costs good grid infrastructure traditional solar following successful and sparse population technology lan
Slide 24: East Midlands Project - Key Deliverables
Orrön Energy Greenfield - UK East Midlands Project - Key Deliverables Land, grid and pre-permit work completed, RtP achieved Land Grid Permit • Constraints mapping • Identification and ranking of • Planning and site appraisal substation locations • Landowner identification • Grid connection applicat
Slide 25: Germany: A Growing Portfolio Maturing Towards RtP
Orrön Energy Greenfield - Germany A Growing Portfolio Maturing Towards RtP Five solar projects expected to reach RtP during 2025-2026 Active across multiple technologies First two projects awaiting final municipality approval Potential battery opportunities awaiting grid feedback Agricultural Batter
Slide 26: Germany: Development Work Finalised on Two Projects
Orrön Energy Greenfield - Germany Development Work Finalised on Two Projects Project 1 - 90 MW RtP expected during H1 2025 for first project Agricultural solar projects with 100% land secured Each project is on a single integrated site Project 2 - 65 MW Favourable permitting assessments and limited
Slide 27: Powering Up - Building on a Strong Foundation
Orrön Energy Greenfield Powering Up - Building on a Strong Foundation A maturing development platform transitioning towards long-term value creation First project sucessfully Continued project reached RtP progression First sales process 2025 2026 Scaling up for initiated with more to follow future s
Slide 28: Financial update
Financial update 28
Slide 29: Financial Highlights: Fourth Quarter 2024 Results
Orrön Energy Financial Highlights Fourth Quarter 2024 Results 287 9 Power generation GWh Revenue MEUR Achieved price 30 EUR/MWh EBITDA(1) 1 MEUR Financially Resilient 65 Net debt end Q4 MEUR 170 Debt facility MEUR All numbers proportionate (1) Excluding non-cash items OE00041 p01 02.25 29
Slide 30: 2024 Key Financial Metrics
Orrön Energy 2024 Key Financial Metrics 2023 Q4 Q1 Q2 2024 Q3 Q4 Power generation (GWh) 13.5 226 274 182 164 287 Achieved price (EUR/MWh) 43 49 31 18 30 9.6 8.7 7.5 5.6 5.9 MEUR Including 3.9 2.9 Leikanger gain 2.0 1.0 1.0 Excluding Leikanger -1.6 gain -3.4 -4.0 -3.9 -4.6 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3
Slide 31: Achieved Price and Capture Price Discount
Orrön Energy Capture price discount Achieved Price 2023 22% 2024 26% Fourth Quarter 2024 42 1 31 30 13 EUR/MWh Average Average Guarantees Capture price Average system price regional of origin and discount achieved price spot price(1) legacy hedging impact(2) (1) Based on actual power generation (2)
Slide 32: Cash Flow and Net Debt
Orrön Energy Cash Flow and Net Debt Fourth Quarter 2024 Liquidity -50 150 Opening net debt(1) 30 Sep 2024 88 106 56 MEUR 100 -1.6 -1.1 Capital expenditure 1.6 MEUR -60 MEUR Acquisitions 5.3 0.5 Closing 50 -6.9 net debt(1) 31 Dec 2024 65 MEUR -70 18 CFFO Changes Cash flow Others(2) excluding in worki
Slide 33: Tax Balances
Orrön Energy Tax Balances Year-end 2024 600 Loss carry forward Tax balance 400 Significant tax shields in Sweden and Finland Loss carry MEUR forward 200 Reducing future payable Tax tax by ~100 MEUR balance 0 Sweden Finland Tax Rates 20.6% 20% OE00041 p05 02.25 33
Slide 34: 2025 Cash Flow Outlook
Orrön Energy 2025 Cash Flow Outlook Assuming 2025 power generation of 975 GWh Value upside and optionality 49 from greenfield pipeline Breakeven price excluding Sudan costs 27 EUR/MWh 32 EUR/MWh 39 MEUR Including Sudan 29 legal costs 23 Achieved price 2025 18 16 30 EUR/MWh 13 11 40 EUR/MWh 8 6 50 EU
Slide 35: Concluding remarks
Concluding remarks OE00014 p14 01.23 35
Slide 36: Creating value through the Energy Transition
Creating value through the Energy Transition Long-term cash flow from Financially resilient with over operating wind farms and 100 MEUR liquidity headroom greenfield project sales Organic growth platforms Large-scale projects on track delivering across 5 countries for early monetisation OE00040 p30
Slide 37: Q&A
Q&A OE00014 p15 01.23 37
Slide 38: Disclaimer
Orrön Energy Disclaimer Forward-Looking Statements Statements in this presentation relating to any future status or circumstances, including statements regarding future performance, growth and other trend projections are forward-looking statements. These statements may generally, but not always, be
Slide 39: Creating value through the energy transition
Creating value through the energy transition OE00023 p20 08.23 39