Cloudberry Clean Energy Asa · OSL:CLOUD
Cloudberry Clean Energy Asa — Investor Presentation (July 2020)
48 slides from Cloudberry Clean Energy Asa's investor presentation, Jul 7, 2020
Slide 1: Cloudberry Company Presentation
Q Cloudberry Company Presentation 7 July 2020
Slide 2: Important information (1/2)
Important information (1/2) + This presentation (the ‘Presentation”) has been produced by Cloudberry Clean Energy AS (the “Company") with assistance from Carnegie AS and Pareto Securities AS (the “Managers”) solely for information purposes in connection with a contemplated private placement in the C
Slide 3: Important information (2/2)
Important information (2/2) This Presentation is not directed at, or intended for distribution to or use by, any person or entity thatis a citizen or resident located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to
Slide 4: Key investment highlights
Key investment highlights 1 Hydro and wind power company focused on the Nordics Cloudberry 2 Unique exposure to long term renewable assets [ad “2 Develop 3 Scalable and efficient platform for growth, benefitting * Production (Equity IRR > 18% p.a.) from 10 years’ in-house development capability (Equ
Slide 5: Introduction to Cloudberry
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Slide 6: We are Cloudberry
We K a wv nr are Cloudberry . . Portfoli M&A i Nordic renewable energy company listed on Euronext Oslo Merkur Market (Ticker: CLOUD-ME) GWh p.. om Owns, develops and operates primarily within an Norwegian hydro and Swedish wind power assets Solid development track record - 10 projects v0 delivered o
Slide 7: Our portfolio
Our portfolio Bjorgelva Power Plant”, Hydro, 7.4 GWh Nesbyen, Viken Location: Sorreisa, Troms i. Production start: 2011 Production start: Q4 2020 Date acquired: June 2019 Date acquired: June 2019 Royrmyra Wind Park, 8.4 GWh Nessakraft, Hydro 34 GWh Location: Hd, Rogaland Location: Balestrand, Vestla
Slide 8: Cloudberry's two most recent development projects
Cloudberry’s two most recent development projects Developed, constructed and sold * 24MW + Sold to Prime Capital, Germany * Final takeover in October 2018 * Cloudberry developed and sold the project pre-construction in 2017 for NOK ~2m per MW © Preconstruction equity IRR = ~30% * Full life-cycle equ
Slide 9: Highly experienced management team
Highly experienced management team Anders J. Lenborg Christian A. Helland Suna F. Alkan Tor Arne Pedersen Chief Executive Officer Chief Value Officer (CFO) Chief Operating Officer Chief Sustainability Officer Chief Development Officer + Founder of Cloudberry + Former Partner and Head of Energy Secto
Slide 10: Backed by active Board of Directors and supportive shareholders
Backed by active Board of Directors and supportive shareholders Board of Directors Selected key shareholders JOHAN JOHANNSON Joh. a , Johannson Significant investor in real estate Fiendom AS and renewable energy. venaom. Chairman Board member Board member Board member Board member THE BERGESEN FAMIL
Slide 11: Acquisition overview
Acquisition overview ae ee
Slide 12: Cloudberry acquires a truly unique and attractive portfolio
Cloudberry acquires a truly unique and attractive portfolio Portfolio overview Transaction background Portfolio production # of assets Attractive portfolio Further potential 12 85 GWh (net production to Cloudberry) 18 hydro power plants and 1 long-term PPA offtake, all located in Norway (geographica
Slide 13: The acquired portfolio
The acquired portfolio™ Location: Production start: Kvitno kraftverk, 11.1 GWh | Production stort: 2018 Svardela kraftverk, 10 GWh Location: Luster ‘Tverrdalselvi kraftverk, 5.8 GWh Location: Fjeerland Production start: 2020 Location: Production start: Strupen kraftverk, 2 GWh Eldao kraftverk, 10 GW
Slide 14: Additional upsides and value drivers not yet reflected in valuation
Additional upsides and value drivers not yet reflected in Cloudberry’s valuation assessment * Increased purchasing power — reduced operating costs - + Sale of power - larger portfolio Economies of scale . . ee oe ge P coe . + Reduced operational risk - both on local annual fluctuations in precipitat
Slide 15: A transformative transaction
A transformative transaction Current portfolio GWhp.a. In production Under construction Current portfolio 53 53 Ss |llU Portfolio post transaction GWhp.a. 138 85 Current portfolio Acquisition portfolio Portfolio post transaction Technology mix (production) + Portfolio of 4 production assets (1 wind
Slide 16: Strong transaction rationale
Strong transaction rationale 16 Significantly growing Cloudberry’s portfolio - expected 2021 production increased from 53 to 138 GWh “Sweet-spot” portfolio, significantly and efficiently scaling the company Diversifying the production portfolio geographically and on an asset level Unique exposure to
Slide 17: The market
The market
Slide 18: Increased power demand in the Nordics...
Increased power demand in the Nordics... Power demand projected to significantly increase... driven by a highly power intensive technological revolution Source of power demand increase, Norway and Sweden (TWh) Selected illustrations of technological innovations to drive increased power demand ze | I
Slide 19: ..backed by favourable regulatory forces and closer European integration
..backed by favourable regulatory forces and a closer integration of the European power market Demand to be met by renewables supply Grid connections to balance European prices Paris Agreement (COP21) Phasing out of nuclear power in Europe by 2030 Carbon pricing * To ensure steady supply and to even
Slide 20: • 0.55 • 0.50 0.45 • 0.40 0.35 • 0.30 0.25 0.20 • 0.15
• 0.55 • 0.50 0.45 • 0.40 0.35 • 0.30 0.25 0.20 • 0.15 0.10 0.05
Slide 21: Wattsight simulated power prices 2024-2030
Wattsight simulated power prices 2024-2030” 44 €/MWh * European power prices are estimated to ET remain in the range of EUR 44-58/MWh by Wattsight Norwegian Krone power prices of 0.45 NOK/KWh based on EURNOK 10x 58 €/MWh 49 €/MWh a Source: Wattsight Q Cloudberry Note: (1) Base case scenario from Jan
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Slide 23: Ørsted Ørsted
NOR 10yr UK 10yr US 10yr GER 10yr 8 7 600 5 Arise 6 Eolus 500 Eolus 5 4 Ørsted Ørsted Scatec Solar 4 400 Scatec Solar 3 3 300 2 2 1 200 0 1 100 -1 -2 0 0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 Jun-18 Jun-19 Jun-20 Jun-18 Jun-19 Jun-20
Slide 24: Our business model for growth and value creation
Our business model for growth and value creation Value creation The Nordic clean renewable platform Production © Holds producing wind and hydro assets © Operations and maintenance sourced externally Q Cloudberry © Source assets externally or internally (from Develop) Develop © In-house development o
Slide 25: Dual growth strategy
Dual growth strategy Organic greenfield development GWhp.a. —— GWhp.a. _ 427 iG 47 a janic opportunities In production Under Construction Backlog” Pipeline® In production Under Construction Backlog" Pipeline) construction permit (for illustration) construction permit (for illustration) # of 2 projec
Slide 26: Active asset management secures a balanced and diversified portfolio
Active asset management secures a balanced and diversified portfolio Development strategy Track-record of developing and divesting to high quality names Production Capacity Yeor realised (awh) (mw) Cloudberry will develop projects to the ready-to-build phase, and Tysveer Vindpark AS Rogaland, Norway
Slide 27: Financial summary
Financial summary Production segment Develop segment Corporate segment Target equity IRR Royrmyra and Finnesetbekken Portfolio acquisition (85 GWhp.a.) Nessakraft and Bjorgelva (41GWhp.a) Expected to generate NOK 29-39m in pre-tax cash flow2) in 27 5-8% + Royrmyra revenues: PPA agreement + Finnesetb
Slide 28: Capital structure and financing strategy
Capital structure and financing strategy Financing strategy Capital structure Enterprise value bridge (NOKm) capitalisation bearing debt” Market Interest Cash? Enterprise value Interest bearing debt bridge (NOKm) Existinginterest_ _Interest bearing Bjorgelva®) Adjusted interest bearingdebt® — debtco
Slide 29: Key investment highlights
Key investment highlights 1 Hydro and wind power company focused on the Nordics Cloudberry 2 Unique exposure to long term renewable assets [ad “2 Develop 3 Scalable and efficient platform for growth, benefitting * Production (Equity IRR > 18% p.a.) from 10 years’ in-house development capability (Equ
Slide 30: Slide 30
Slide 31: Shareholder overview and selected corporate matters
Shareholder overview and selected corporate matters Shareholder overview Shareholders # Shares % Shares Joh Johannson Eienclom AS 10,431,495 2% Snefonn AS (Bergesen family) 4,738,036 12.31% Havfonn AS (Bergesen family) 3,216,216 8.36% CCPartner AS (Chairperson, Frank J. Berg) 2,696,957 7.01% Cloudbe
Slide 32: Group legal structure
Group legal structure Cloudberry Clean Energy AS 100% 100% Cloudoery Production SaaS 100% 100% 100% 85% 66% , Cloudberrry Wind CloudberryUtveckiing ; Royrmyra Vindpark AS Cloudberry Wind AB pucrerry ne Rewind Offshore AB 100% Finnesetbekken _100% , ; renatrere Duvhéllen Vindpork AB CloudberryProjekt
Slide 33: Sustainability in focus
Sustainability in focus Delivering renewable energy solutions, contributing to an overall reduction in emissions Highly focused on the environmental impact and a sound industrial rationale of renewable projects Contributing to local value creation and employment Focus on sustainable and circular sol
Slide 34: Outsourcing operations to tap into local presence and expertise
Outsourcing operations to tap into local presence, expertise, technology and sharing in economies of scale Operational strategy perating partnerships + Technologically advanced operational platform, optimising day to day operations Why outsource operations? Cloudberry’s strategy is to own and develo
Slide 35: Strong forces pushing for the Energy Transition
Strong forces pushing for the Energy Transition Strong forces pushing for conversion to renewables Renewables projected to make up the lion’s share of power supply DeusTR BATON MO RASTRUCTURE AND PRODUCTION Cost of energy Energy security Foreign investment Employment and economic growth Paris Agreem
Slide 36: Wind power to play a dominant role in the Energy Transition
Wind power to play a dominant role in the Energy Transition The European wind power market is growing at rapid pace... Annual wind power production in Europe (TWh) TWh 1000 900 800 700 600 500 400 300 200 100 9 2000 ..cind the cost of the technology keeps decreasing Historic global development of wi
Slide 37: Risk factors
Risk factors wy 8
Slide 38: Risk factors (1/10)
Risk factors (1/10) Investing in Cloudberry Clean Energy AS (the “Company”) involves inherent risks. Before making an investment decision, investors should carefully consider the risk factors and all information contained in this Company Presentation, as well as all currently available public inform
Slide 39: Risk factors (2/10)
Risk factors (2/10) * The revenues from sale of electricity, electricity certificates and guarantees of origin are subject to price risk Sale of electricity, electricity certificates and guarantees of origin constitute a material share of the Company's revenues. The profitability of the Company's pr
Slide 40: Risk factors (3/10)
Risk factors (3/10) + The renewable sector is still under development Unexpected success in other areas of renewable energy may reduce the pressure on the authorities to allow for development of wind parks and hydro power plants. This may affect the Company's future investment opportunities and redu
Slide 41: Risk factors (4/10)
Risk factors (4/10) 4a Power plants are highly technical and thus subject to operational risk Investments in power generation and energy-related infrastructure involve technical and operational risk. The Company will seek to invest in power plants of expected good technical standard to reduce the te
Slide 42: Risk factors (5/10)
Risk factors (5/10) * Several of the Company's development projects may not be realized Several of the Company's projects are under development and may not be realized. The right to build and operate a renewable project is subject to public concessions and permits in addition to private ownership ri
Slide 43: Risk factors (6/10)
Risk factors (6/10) Financial risks + Required return by investors may lower the equity value of the Company There is uncertainty with respect to the future risk premium an investor will demand when investing in renewable energy and energy related infrastructure. If the required return is increased,
Slide 44: Risk factors (7/10)
Risk factors (7/10) + Fluctuations in exchange rates could affect the Company's cash flow and financial condition The Company presents its financial statements in NOK. However, Norwegian power companies sell the power through Nord Pool. All trades on Nord Pool are settled in Euro, exposing the Compa
Slide 45: Risk factors (8/10)
Risk factors (8/10) + The Company is dependent on external financing Further expansion of the Company's business will require external financing. If the Company is not able to obtain required financing on a timely basis and on attractive terms this could result in lost business opportunities, shorte
Slide 46: Risk factors (9/10)
Risk factors (9/10) 46 The market price of the shares may be volatile which could result in investors losing a significant part of their investment An investment in the shares involves risk of loss of capital, and securities markets in general have been volatile in the past. The trading volume and p
Slide 47: Risk factors (10/10)
Risk factors (10/10) + The shares are subject to restrictions on dividend payments Norwegian law provides that any declaration of dividends must be adopted by the Company's general meeting. Dividends may only be declared to the extent that the Company has distributable funds and the board of directo
Slide 48: Cloudberry.no
Q Cloudberry Cloudberry.no
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