Slide 1: Q3 2024 Strong financial performance
Q3 2024 Strong financial performance CEO, Terje Pilskog & CFO, Hans Jakob Hegge
Slide 2: Key highlights
Q3 2024 Key highlights Key figures - proportionate Figures in brackets are same quarter last year Total revenues Solid proportionate revenues and EBITDA increase and other income Power production - revenues of NOK 2.4 billion and EBITDA of NOK 1.5 billion D&C margin increase after strong constructio
Slide 3: Production increase of 24% adjusted for divestments
Power Production Production increase of 24% adjusted for divestments Power Production, GWh EBITDA NOKm +95% +24% 1,540 54 21 1,254 38 22 168 1,047 234 38 1,009 162 Kenhardt, Kenhardt, Mendubim, Mendubim, Sukkur 383 Sukkur 811 789 22 Q3’23 Divestments Q3’23 New Laos Uganda Other Q3’24 Q3’23 Divestmen
Slide 4: Philippines EBITDA of NOK 382 million driven by Ancillary Services
Philippines EBITDA of NOK 382 million driven by Ancillary Services Net Revenue, NOK million Power Production, GWh Ancillary Services Spot & Contract Spot volumes Contract volumes AS volumes • Ancillary service revenues of NOK 301 305 432 217 million driven by: 299 217 186 • Contribution from long-te
Slide 5: Strong progress with 12% underlying D&C-margin
Construction Strong progress with 12% underlying D&C-margin - 103 MW Mogobe BESS started construction Q3’24 financial performance 273 MW solar Grootfontein, South Africa NOK 631m D&C revenues 120 MW solar Tunisia 12% Gross D&C margin 60 MW solar NOK 3.4bn Botswana phase 1 remaining EPC contract valu
Slide 6: We have 2.2 GW of near-term growth capacity and a 10.1 GW pipeline
We have 2.2 GW of near-term growth capacity and a 10.1 GW pipeline for further expansion Maturing pipeline with 62% solar to fuel further growth 10.1 GW 2% 1% 3% 10% 23% Expected to start construction within 9-12 months Finalised during 1.6 GW 2025/2026 5% 7% 62% 8% 0.6 GW 16% 79% 84% Under construc
Slide 7: Financial review
Financial review Hans Jakob Hegge, CFO
Slide 8: Power Production revenues of NOK 1.8 billion
Q3’24 Proportionate Financials Power Production revenues of NOK 1.8 billion Revenues, NOK million EBITDA, NOK million • 90% EBITDA increase driven by 2,500 2,372 2,416 1,600 1,520 13 divestment in South Africa and the Philippines 1,400 631 2,000 1,323 1,200 • Strong D&C performance with 1,000 gross
Slide 9: Power sales increased by 44% to 1.2 billion
Q3’24 Consolidated Financials Power sales increased by 44% to 1.2 billion Revenues, NOK million EBITDA, NOK million 3,000 2,967 2,800 2,659 • NOK 1.5 billion accounting gain from sale of assets in South Africa 2,400 2,500 1,161 2,000 • Net income from JVs of NOK 315 2,000 million 1,600 1,500 1,200 •
Slide 10: Net interest-bearing debt of NOK 22.1 billion
Proportionate Net interest-bearing debt of NOK 22.1 billion NOK billion 22.0 22.1 0.2 1.1 • Drawdown of new debt related to projects under construction 13.4 • Net project debt reduced to NOK 13.0 13 billion due to amortisations • Net corporate debt down to NOK 8.0 billion due to amortisation and FX
Slide 11: Total available liquidity of NOK 2.2 billion
Free cash on Group level Total available liquidity of NOK 2.2 billion Q3’24 movements of the Group’s free cash, NOK million 1 -159 1,188 495 -478 -20 0 2,151 223 901 963 End Q2’24 Distributions from EBITDA from D&C Taxes paid Changes in Other changes Cash flow from CF from financing End Q3’24 Undraw
Slide 12: Outlook
Outlook Power Production • FY’24 Power Production estimate: 4,200-4,300 GWh • FY’24 EBITDA estimate: NOK 4,150-4,350 million • Q4’24 Power production estimate: 1,100-1,200 GWh • Q4’24 Philippines EBITDA estimate: NOK 270-370 million Development & Construction • Remaining D&C contract value: NOK 3.4
Slide 13: 2027 strategy roadmap
2027 strategy roadmap Attractive growth and strengthening balance sheet 13
Slide 14: Improving the future for communities and individuals
Improving the future for communities and individuals 5.6 21 11 20 $20 GW million tonnes million thousand million renewable capacity GHG emissions households direct jobs invested in local installed, acquired and avoided powered annually created communities under construction* 14 *Excluding divestment
Slide 15: We have sharpened our strategic roadmap towards 2027
We have sharpened our strategic roadmap towards 2027 Continued self-funded strategy with increased focus on solar + BESS in four core markets Profitable • Target 750 million equity investments annually growth • Estimated ~15% project equity IRR from operations and ~30%* integrated project equity IRR
Slide 16: …supported by strengthened market fundamentals
…supported by strengthened market fundamentals Solar PV module prices all …and energy storage system Interest rates expected …expected to contribute to time low… prices continue to decrease to decrease… falling LCOEs** USD/W USD/Kwh 4-hour battery storage Onshore wind Solar PV Coal Yearly delivery p
Slide 17: We have selected four core markets with attractive growth outlook
We have selected four core markets with attractive growth outlook South Africa Egypt Philippines Brazil In operation Top #2 solar producer Top #2 solar producer Top #2 hydro producer Top #10 solar producer Under construction 8% Backlog 22% 17% 34% 1,106 1,740 729 835 Portfolio, MW 66% 78% 83% 92% 52
Slide 18: Our secured projects represent a 46% capacity increase to 6.2 GW
Our secured projects mainly in these markets represent a 46% capacity increase to 6.2 GW* Asset portfolio, GW on 100% basis +46% 6.2 GW* 1.6 4.6 GW 4.2 GW Brazil, Egypt, 0.6 Botswana & 0.3 Philippines Uganda South Africa, Botswana, Tunisia & Release In operation Q3’24 Divestment - held for sale Unde
Slide 19: The 2.2 GW are in the sweet spot of our strategic growth ambitions
The 2.2 GW are in the sweet spot of our strategic growth ambitions …and substantial D&C gross margins covering Delivering profitable growth in core markets… ~75% of Scatec’s target equity investments 88% Core markets Other 12% $1.9 billion total capex …with focus on Solar PV & BESS… $1.5 billion non
Slide 20: 556 MW of Solar + BESS already under construction
556 MW of Solar + BESS already under construction Est. D&C revenues of USD 457 million with a gross margin of 10-12% Projects under construction* Grootfontein, 273 MW Solar Capex Leverage Scatec target equity D&C revenues Ownership: 51% Offtake: 20-year PPA (ZAR) Financing structure: Equity last $25
Slide 21: …And 1.6 GW in backlog
…And 1.6 GW in backlog Est. D&C revenues of USD 680 million with a gross margin of 10-12% and long-term offtakes secured Projects in backlog Egypt, 1.1 GW Solar + 100 MW BESS Capex Leverage Scatec target equity D&C revenues Ownership: 100% (26% target) Offtake: 25-year PPA (USD) Financing structure:
Slide 22: Solid project equity returns generated from our integrated approach
Solid project equity returns generated from our integrated approach Scatec project equity IRR build up - Average equity IRRs for projects under construction, backlog and mature pipeline projects • Strict value creation criteria drives all investment decisions IRR ~30% • Maximising returns through an
Slide 23: Optimization of working capital during construction
Optimization of working capital during construction EPC-working capital Illustrative Scatec EPC cash flows during construction (%) (%) • Upfront inflows based on 40 milestone payments Inflow Outflow Cash position Ensuring positive 30 working capital • Back-ended outflows 20 achieved through supplier
Slide 24: Capturing more value through capital efficiency
Capturing more value through capital efficiency Illustrative ownership platform – farm-down to 26% while retaining control Key rationale • Value creation through increased Equity D&C margins per equity invested partner • Further IRR uplift through optimal >50% timing of farm-down Equity Reduced equi
Slide 25: Divesting operating assets to fund strategic initiatives and crystallise value
Divesting operating assets to fund strategic initiatives and crystallise value Solid track record USD 1.5m EV/MW (USDm), disclosed divestments & farm-downs last 24 months EV/MW average • 6 transactions last 24 months* 1.6 1.6 1.5 1.4 Attractive pricing • USD 1.5 million EV/MW average 1.2 • Value acc
Slide 26: Key takeaways
Key takeaways • Strong quarterly results • Attractive near-term growth • Committed to deleverage
Slide 27: Scatec
Scatec
Slide 28: Overview of change in net debt during the quarter - proportionate
Overview of change in net debt during the quarter- proportionate Project and Group level net interest bearing debt NOK billion Q2’24 Repayments New debt Change in Currency effects Q3’24 cash and other changes Project level -13.6 0.3 -0.7 0.0 -0.1 -14.1 Group level -8.4 0.1 0.0 0.0 0.3 -8.0 Total -22
Slide 29: Our asset portfolio
Our asset portfolio Plants in operation Capacity Economic Under construction Capacity Economic Project pipeline Capacity Share in % MW interest MW Interest MW South Africa 730 45% Grootfontein, South Africa 273 51% Solar 6,231 62% Brazil 693 33% Tunisia portfolio 120 51% Wind 2,274 23% Philippines 6