Cloudberry Clean Energy Asa · OSL:CLOUD
Cloudberry Clean Energy Asa — Investor Presentation (December 2020)
54 slides from Cloudberry Clean Energy Asa's investor presentation, Dec 9, 2020
Slide 1: Cloudberry Company Presentation
Q Cloudberry Company Presentation 9 December 2020
Slide 2: Important information
Important information This company presentation (the "Presentation") has been prepared by Cloudberry Clean Energy AS (the "Company") and its subsidiaries (together the "Group") and is made solely for information purposes. This Presentation does not constitute any recommendation to buy, sell or other
Slide 3: Introduction
Introduction
Slide 4: Cloudberry owns, operates and develops renewable energy
Cloudberry owns, operates and develops renewable energy Owns, develops and operates renewable power assets in the 4 Nordics A (Q Cloudberry % Large production portfolio, with both hydro and wind assets | 7 al Large and growing development backlog and pipeline Solid development track record — 10 proj
Slide 5: Our current portfolio of hydro and wind power
Our current portfolio of hydro and wind power Sweden ®) Norway @ “se st e . fice @ production @ under construction @ Construction permit Production Develop (incl. under construction) Construction permit Backlog Hydro assets: 17 Wind assets: 3 Projects: 11 Wind assets: 1 Capacity: 150 MW Capacity: 37
Slide 6: Cloudberry Company Overview
Cloudberry Company Overview
Slide 7: Cloudberry will contribute to driving the energy transition
Cloudberry will contribute to driving the energy transition * Broad public pressure to decarbonise energy markets World installed power generation capacity by * Expected strong demand growth for green power source in the Stated Policies Scenario (IEA) through i.a.: 4000 o Electrification of industri
Slide 8: Cloudberry owns, operates and develops renewable energy
Cloudberry owns, operates and develops renewable energy Net secured production Construction permit Project backlog GWh p.a. MW MW Wind Hydro ~95%~2%6 Wind (ealeley4 Wind (iealeley4 160 150 370 250 40 MW 50 be H1 2020 Within 12 months H1 2020 Today H1 2020 Today 8 Note: (1) 12 GWh currently in produc
Slide 9: Our current portfolio of hydro and wind power
ion segm Our current portfolio of hydro and wind power Finnesetbekken power plant Nessakraft Project Vanern Nesbyen Norway f 20n1 June 2019 Hydro September 2 Sweden Forte Vannkraft portfolio (SI +160 winctorm * , Seeking to have a balanced mix FoGWwh/2iMW export licen of both hydro and wind power ge
Slide 10: Maximise value from organic development pipeline
Maximise value from organic development pipeline Strategically decide to keep and construct in-house or alternatively farm down or divest eee ~N , C eo Keep and construct | @ ( a Ready-to-build development 1 construction | . ucti ; | | Production capex Equity return \ | a I Identification Constructi
Slide 11: Years track-record from development
10 years track-record from development » Attractive development portfolio of mainly Swedish wind projects * Development of projects to ready-to-build, and strategically decide to keep and construct selected assets in-house or alternatively farm down or divest » Local development team of 5 experience
Slide 12: Develop segment
Develop segment Hdn to be developed in-house for production portfolio Adjacent Marker windfarm successfully developed and sold - Hdn to be a “blueprint copy” 12 Capacity Turbines 21MW 4 Project capex Potential completion NOK ~270m H1-2022 Low risk project with ideal size and location Planning to dev
Slide 13: Value of first shallow water wind project crystallised
nt Value of first shallow water wind project crystallised The Vanern Project Wind development in Sweden’s largest lake Capacity Turbines Partner é 100 MW 16 Downing LLP. Divestment price Project capex Cloudberry ownership NOK ~3m/MW NOK ~1.7bn( 20% + Entered into exclusivity agreement with Downing L
Slide 14: Becoming a substantial developer of shallow water wind
Becoming a substantial developer of shallow water wind Current focus on shallow water wind licensing Large suitable shallow water areas * Cloudberry has built a strong foothold in Swedish shallow water wind * Focus on lake and shallow water areas in the Baltic Sea o Both lake and ocean areas progres
Slide 15: Management team
Anders J. Lenborg Chief Executive Officer ae r\ A Sebastian Prause Project Manager 5 Christian A. Helland Chief Value Officer (CFO) 4 ry Ingemar Andersson Wind Analyst Jon Gunnar Solli Chief Operating Officer Stefan Larsson Environmental Lawyer Suna F. Alkan Chief Sustainability Officer Roger Grenda
Slide 16: Our sustainability approach
Our sustainability approach 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
Slide 17: Cloudberry Drivers and Financial Outlook
Cloudberry Drivers and Financial Outlook
Slide 18: Power price forecasts
• 60 • 50 40 30 • 20 10 • 0 • 2016 2017 2018 2019 2020 2025 2030 2035 2040 Historicals Wattsight NVE Statnett •
Slide 19: Very supportive fundamentals
Very supportive fundamentals Production, consumption and net balance (TWh, 2019) SE4 Ringhals 1 (-20 TWh) phase 58 __out by end of 2020 Ringhals 7(-20 TWh) phase SEQ — wtbvendof 2020 SE1 NO5 NO4 NO3 NO2 NO1 Ml Production Ill Consumption Il Net balance 19 Source: SCB, Nordpool, Cloudberry (LHS); NVE
Slide 20: Value potential in Develop segment to be crystallised
Value potential in Develop segment to be crystallised Long-term cash flows (Production) and a substantial project bank of renewable projects (Develop) Illustrative Q Cloudberry Book value Develop value Market capitalisation (project bank) 20 QR Cloudberry
Slide 21: Segment financial overview
Segment financial overview NOKm Based on net production of 160 GWh (before growth opportunities) Commentary + |llustrative EBITDA based on assumed power prices of EUR 30/MWh and EUR 40/MWh (not company profit estimate) Production segment EBITDA (proportionate) ~40 Based on 160 GWh net production * U
Slide 22: Balance sheet overview
Balance sheet overview Cash position Net interest bearing debt NOKm 36200 3 Dec 2020 NOKm Interest bearing debt position Adjusted net interest bearing position sted for Negative valu -98 liabilities for net cash position — Ul producing assets (160 GWh) 3 Dec 2020 22 Note: Unaudited; (1) Includes a N
Slide 23: Growth Opportunities
Growth Opportunities
Slide 24: Exclusive growth opportunities in wind and hydro
Exclusive growth opportunities in wind and hydro Production (GWh) Financing requirement / structure (NOKm) Cloudberry equity IRR coD Location Vénern Odal® Hydro assets Sum of opportunities In-house Acquisition 4 Exclusive acquisition N 4 4 ais i 48 176 289 70 _ EE == mi eS 77 560 Self financed) Equi
Slide 25: The opportunities will almost triple the production capacity
The opportunities will almost triple the production capacity GWh 25 289 GWh> 449 160 Net secured production” Net production incl. opportunities(2)() Note: All figures presented as net figures / proportionate to ownership; (1) 12 GWh currently in production. Net secured production coming on-stream wi
Slide 26: Acquisition of up to 33.4% of Odal windfarm
Acquisition of up to 33.4% of Odal windfarm Unique opportunity to invest in a large wind power project, in a region with few wind investments 176.wh 626 Gwe) Estimated project timeline sen 5 Jun-20: Start construction EV incl. project capex NOK ~717m (NOK ~2 148m) Targeted debt NOK ~359m (NOK ~1074m
Slide 27: Secured exclusivity to acquire five Norwegian hydro assets
Secured exclusivity to acquire five Norwegian hydro assets High quality assets with long lifetime and further improvement possibilities 27 42.6 GWh 1.3 MW NOK ~242m NOK ~121m NOK ~121m 7% In production (2 assets) / H2-2021 (3 assets) Western and Southern Norway Cloudberry has secured exclusivity to
Slide 28: Illustrative financial impact of adding GWh production
Illustrative financial impact of adding 289 GWh production {BE Illustrative Production EBITDA effect of 289 GWh Illustrative EBITDA ll llustrative Production segment EBITDA figures il Illustrative Develop segment EBITDA Highlighting NOKm illustrative effect of adding 289 GWh to production portfolio,
Slide 29: Equity financing of growth opportunities
Equity financing of growth opportunities Equity requirement for growth opportunities NOKm, 480 243 Vénernt) Odal2) Hydro assets Equity requirement® Fontavis credit facility Min. equity requirement?) Note: (1) Vanern (20% ownership) self financed (value realisation of NOK ~300m through project develo
Slide 30: Key highlights
Key highlights 30 High quality assets with long life expectancy Attractive price areas Balanced mix of hydro and wind in portfolio gives a stable production profile throughout the year Further development possibilities in the portfolio Partnering with tier 1 market players
Slide 31: Risk Factors
Risk Factors
Slide 32: Risk factors (1/14)
Risk factors (1/14) 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 33: Risk factors (2/14)
Risk factors (2/14) * 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 Group's revenues. The profitability of the Group's produc
Slide 34: Risk factors (3/14)
Risk factors (3/14) + 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 Group's future investment opportunities and reduce
Slide 35: Risk factors (4/14)
Risk factors (4/14) + Power plants are highly technical and thus subject to operational risk Investments in power generation and energy-related infrastructure involve technical and operational risks. The Group will seek to invest in power plants of expected good technical standard to reduce the tech
Slide 36: Risk factors (5/14)
Risk factors (5/14) 36 The Group may be subject to litigation (continued) The Company is involved in a discussion with a contractor related to the final account of the work performed by the contractor. Although the final account has not yet been presented, the Company has disputed an invoice of appr
Slide 37: Risk factors (6/14)
Risk factors (6/14) * The Group may make acauisitions that prove unsuccessful or strain or divert management resources Making acquisitions is part of the Group's strategy. The Group makes strategic acquisitions to support growth and profitability. Successful growth through acquisitions is dependent
Slide 38: Risk factors (7/14)
Risk factors (7/14) + Risks related to the Group’s shares in Forte Energy Norway AS (continued) In case FEN requires additional funding, the Group's ownership in FEN could be reduced, e.g. due to dilution as a result of share capital increases in FEN if the Group does not subscribe for its pro rata
Slide 39: Risk factors (8/14)
Risk factors (8/14) 39 Fluctuations in exchange rates could affect the Group's cash flow and financial condition The Company presents its financial statements in NOK. However, all trades on Nord Pool, which is the market for trading of power in Norway and Sweden, are settled in Euro, exposing the Gr
Slide 40: Risk factors (9/14)
Risk factors (9/14) + The Group is dependent on external financing Further expansion of the Group's business will require external financing. If the Group is not able to obtain required financing on a timely basis and on attractive terms this could result in lost business opportunities, shortened li
Slide 41: Risk factors (10/14)
Risk factors (10/14) + If the Group defaults on its funding obligations for the Odal wind farm project the shares may be bought by the other shareholders at a significant discount If the Group defaults on its financing obligations under the shareholders’ agreement for the Odal wind farm, and such de
Slide 42: Risk factors (11/14)
Risk factors (11/14) . Further risks related to the Investments As mentioned under the risk factor under the heading “Changes in tax laws of any jurisdiction in which the Group operates, or any failure to comply with applicable tax legislation, may have a material adverse effect for the Group”, the
Slide 43: Risk factors (12/14)
Risk factors (12/14) Risks related to the shares + Future issuances of shares in the Company or other securities, including by use of board authorizations, may dilute the holdings of shareholders and could materially affect the trading price of the Company's share The Company’s general meeting has r
Slide 44: Risk factors (13/14)
Risk factors (13/14) 44 Norwegian law imposes certain restrictions on shares and shareholders The rights of the shareholders are governed by Norwegian law and by the Company's articles of association. These rights may differ from the rights of shareholders in companies incorporated in other jurisdic
Slide 45: Risk factors (14/14)
Risk factors (14/14) + The transfer of shares is subject to restrictions under the securities laws of the United States and other jurisdictions None of the shares have been registered under the US Securities Act of 1933 (as amended) (the "US Securities Act") or any US state securities laws or any ot
Slide 46: Appendix
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Slide 47: Overview of adjusted net interest bearing debt position
Overview of adjusted net interest bearing debt position and Adjusted net interest bearing debt position rj My NOKm . an 7 Finnesetbekken Existing/paid Reflected on Existing/paid Adjusted for undrawn liabilities for producing assets and Royrmyra 19/P balance sheet 19/P (reflecting fully financed 160
Slide 48: The Forte Vannkraft portfolio
The Forte Vannkraft portfolio Cloudberry to be the local and active manager * 13 hydro power plants and 1 long-term PPA offtake, all located in Norway Kvitno kraftverk, 11.1 GWh Location: Odda Production start: 2015 Svardala kraftverk, 10 GWh Tverrdalselvi kraftverk, 5.8 GWh Location: Luster Locatio
Slide 49: Bolt-on acquisition of hydro power plant under construction
Bolt-on acquisition of hydro power plant under construction * Acquisition of Amotsfoss hydro power plant announced in September 2020 * Locally constructed (BN Vannkraft), financial close / COD scheduled in Q3-2021 * Attractive hydro power plant with 22.5 GWh (4.5 MW) located in Nidelva, the main riv
Slide 50: Financing strategy
Financing strategy 50 Seek to maintain an optimised capital structure, taking both return and risk levels into consideration Several long-term alternatives available for financing, depending on project size, transaction type and counterparty, including: Existing cash and cash flow generation Attract
Slide 51: Active Board of Directors and supportive shareholders
Active Board of Directors and supportive shareholders Board of Directors Frank Benedicte J. Berg Fossum Chairman Board member + 10 years diversified board experience + 30 years in Nordic renewables + Former partner in + Pharmag AS; Arthur Andersen and founder, R&D, M&A Selmer ond strategic + Board m
Slide 52: Balance sheet and financing per H1-2020
Balance sheet and financing per H1-2020 Statement of Financial Position (IFRS) ‘Amounts in NOK million Property, plant and equipment Other non-current assets Total non-current assets Cash and cash equivalents Accounts receivable and other assets Total current assets Total Assets Total equity Non-cur
Slide 53: Shareholder overview and selected corporate matters
Shareholder overview and selected corporate matters Shareholder overview (8 December 2020) Selected corporate matters Shareholders # Shares _% Shares Listed on Euronext Growth Oslo from April 2020 (CLOUD) JOH JOHANNSON EIENDOM AS 10 431495 18.16 % SNEFONN AS (Bergesen family) 6404702 1.16 % Initiate
Slide 54: Cloudberry.no
Q Cloudberry Cloudberry.no
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