ACWA Power : Earnings Call 2024

ACWA Power Company

12M2023 Earnings Call

29 February 2023

For the year ended 31 December 2023

DISCLAIMER

ACWA POWER INVESTOR RELATIONS | www.acwapower.com | [e-mail]

This document and the information contained therein (the "Information") has been prepared by ACWA POWER Company (the "Company" or "ACWA Power") for background purposes only and does not purport to be full, accurate or complete. No reliance may be placed for any purpose on the Information or its accuracy, fairness or completeness. The Information and opinions contained herein are provided as at the date of the presentation and are subject to change without notice. The presentation is the sole responsibility of the Company and has not been reviewed or approved by any regulatory or supervisory authority.

This presentation contains financial information regarding the businesses and assets of the Company. Such financial information may not have been audited, reviewed or verified by any independent accounting firm. The inclusion of such financial information in this presentation or any related presentation should not be regarded as a representation or warranty by the Company or its affiliates, advisors or representatives or any other person as to the accuracy or completeness of such information's portrayal of the financial condition or results of operations of the Company and its consolidated subsidiaries. Certain information contained in this presentation is based on management accounts, current financial statements and estimates of the Company and has not been audited or reviewed by the Company's auditors. Recipients should not place undue reliance on this information. This presentation includes certain non-IFRS financial measures and other metrics which have not been subject to a financial audit for any period. Certain financial and statistical information in this presentation has been subject to rounding off adjustments. Accordingly, the sum of certain data may not conform to the expressed total.

To the extent available, the industry, market and competitive position data contained in the Information come from official or third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company reasonably believes that each of these publications, studies and surveys has been prepared by a reputable party, neither the Company nor any of its directors, officers, employees, affiliates, advisors or agents have independently verified the data contained therein. In addition, certain industry, market and competitive position data contained in the Information come from the Company's own internal research and estimates based on the knowledge and experience of the Company's management in the markets in which the Company operates. While the Company reasonably believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change. Accordingly, reliance should not be placed on any of the industry, market or competitive position data contained in the Information.

The Information does not purport to be comprehensive, complete or without error or omission. To the fullest extent permitted by law, neither the Company nor any of its directors, officers, employees, agents, affiliates or advisors, accepts any responsibility or liability whatsoever for (whether in contract, tort or otherwise) or makes any representation, warranty or undertaking, express or implied, as to the truth, fullness, fairness, accuracy or completeness of the Information (or whether any information has been omitted from it) or any other information or opinion relating to the Company, its subsidiaries, affiliates or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss or liability (including in respect of direct, indirect or consequential loss or damage) howsoever arising from any use of the Information or otherwise arising in connection therewith. In giving this presentation, neither the Company nor any of its directors, officers, employees, agents, affiliates or advisors undertake any obligation to provide access to any additional information or to update the Information, or to correct any inaccuracies in the Information, including any data or forward-looking statements.

The Information may include forward-looking statements, which are based on current expectations and projections about future events. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target", "believe", "expect", "aim", "intend", "may", "anticipate", "estimate", "plan", "project", "will", "can have", "likely", "should", "would", "could" and other words and terms of similar meaning or the negative thereof. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company and its subsidiaries and its investments, including, among other things, the development of its business, financial condition, prospects, growth, strategies, as well as the trends in the industry and macroeconomic developments in Saudi Arabia and other countries in which the Company operates. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of regulators and any changes in applicable laws or government policies. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur and past performance should not be taken as a guarantee of future results. No representation or warranty is made that any forward-looking statement will come to pass. No one undertakes to update, supplement, amend or revise any such forward-looking statement. Except where otherwise indicated, the Information and the opinions contained herein are provided as at the date of the presentation and are subject to change without notice. Past performance of the Company cannot be relied on as a guide to future performance. Nothing in this presentation is to be construed as a profit forecast.

Acronyms and abbreviations

FC: Financial Close; ICOD: Initial Commercial Operation Date; IPP: Independent Power Project; IWP: Independent Water Project; IWPP: Independent Water and Power Project; KSA: Kingdom of Saudi Arabia; MW: Megawatts;

Mwac: Megawatt, alternating current; O&M: Operations and Maintenance; PCOD: Project Commercial Operation Date; PIF: Public Investment Fund (of the KSA); PPA: Power Purchase Agreement; PPP: Public Private

Partnership; PV: Photovoltaic; RO: Reverse Osmosis; SWRO: Seawater Reverse Osmosis.

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SAFETY AND OPERATIONS

POWER INVESTOR RELATIONS | www.acwapower.com |[e-mail]
ACWA	Source: Company information.	3

PORTFOLIO

ACWA POWER INVESTOR RELATIONS | www.acwapower.com | [e-mail]

		YE 2023	Change vs. YE
		2022
	# of Assets	81	+13
AUM (SAR B)1	318	+48
Power (GW)	55.1	+10.7	Of which, 30GW is operational (2022: ~25GW)
2
Renewable Power (GW)2	24.5	+7.1
Water (M m3/day2	7.6	+1.4	Of which, 5.5M m3/day is operational (2022: ~4M m3/day)

Source: Company information. 1 Assets under management represents total investment cost of projects in the portfolio. 2 Gross capacity.

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BUSINESS DEVELOPMENT

Submitted Bids - 12M23

		Power (GW)			Water (M m3/day)
			Pending		Submit-	Pending
	Submitted	Won	Decision		ted	Won Decision

[e-mail]|	Competitive	11.4	3.9	2.0	1.2	0.8	0.4
	Negotiated, of which:	7.1	6.8	0.3	-	-	-
www.acwapower.com|	PIF program	4.6	4.6	-	-	-	-
• Record year of activity in business development	0.8	-
	Total	18.5	10.6	2.3	1.2
RELATIONS	earmarking future earnings and cash pipeline		12
	financial
• Hassyan IWP subsequently signed financing			closes
INVESTOR
documents in February
POWER
ACWA	Source: Company information.						5

FUNDING THE GROWTH

Growth pipeline indicates to increased levels of equity commitments

POWER INVESTOR RELATIONS | www.acwapower.com | [e-mail]

ACWA Power Equity Commitments

Billion SAR

	5.8
4.5	3.8 -
4.9

FY22	FY23	24-30 Guidance
		Avg/year

Additional

equity

commitment per year 24-30 on average

SAR3.8 - 4.9B/year IPO guidance for 21-26 on average

• Equity commitments in 2023 reached SAR 5.8B
• Higher commitments in line with our earlier guidance
• We expect the growth pipeline will see us exceed the historical figures - approx. average $2B per year between 2024-30
• Our balance sheet has headroom for further parent indebtedness in the short term

ACWA

Source: Company information. 1 The Company's equity commitments are based on successful bidder announcement, or where a bid is negotiated based on project award agreements (collectively "Advanced Development Projects") and
represent ACWA Power's share of base equity and EBLs for each project, as approved by the Board Executive Committee (BEC) of the Company. The equity commitment amount does not represent the amount of equity invested but what the	6
Company is committed to contribute. Please note that equity commitments are subject to change until underlying projects achieve their respective financial closes, which may take longer than a full financial year in some circumstances.

STRATEGY 2.0: BUSINESS VERTICALS AND GOALS

We aspire to triple our assets under management to $250 billion by 2030

[e-mail]|					Renewable power		Water desalination	Green hydrogen	Flexible generation
				Global top 3		Global leader	Global top 3	Enable energy
					position			position	transition
www.acwapower.com				We will focus on four technologies - Renewables, Flexible generation, Green Fuels, Water Desalination
			We will focus on four regions - KSA, Middle East & Africa, Central Asia, and Southeast Asia/China
|				We will focus on China as a potential key market for investments with local partners
INVESTORRELATIONS
			We will enhance our People, Supply Chain and R&D capabilities to maintain our edge
				In Africa and Southeast Asia we will consider opportunities for consolidation
POWER
ACWA		Source: Company information.				7

ACWA POWER INVESTOR RELATIONS | www.acwapower.com | [e-mail]

KSA RENEWABLE ENERGY AMBITION & PIF PROGRAM

• We are responsible to deliver the PIF program - 70% of Saudi Arabia's renewable installation by 2030
• To-date14GW of PIF program brought into development (vs. 11.8GW targeted by end of 2024)
• Saudi MOE announced 20GW renewable deployment every year till 20301
• There will be additional bidding space in thermal projects (2024-25 announced capacity is 15GW) and water desalination in Saudi Arabia

Additional PIF program with increased

Onshorerenewable target of

wind

Saudi Arabia

						Project 1
	Solar PV			Ar Rass 2		28.3	42.0	Previous PIF
					(2,000MW)	Project 2				total program
					Saad 2
					(1,125MW)	Project 3
					Al Kahfah
				Al Shuaibah 2	(1,425MW)
	Sudair		(2,060MW)		5.5	13.7
	(1,500MW)		4.6
1.1		0.4	2.1
	PIF 1	PIF 1	PIF 2	PIF 3	PIF 4	Total capacity in	Remaining	Total program
(Operational)	(Under	(FC achieved)	(FC achieved)	(RFP issued)	pipeline end	capacity to be
			construction)				2023	tendered - 2024
								onward

Source: Company information. 1https://www.argaam.com/en/article/articledetail/id/1692415#:~:text=Saudi%20Arabia%20aims%20to%20add,of%20green%20electricity%20or%20hydrogen.

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ACWA POWER INVESTOR RELATIONS | www.acwapower.com | [e-mail]

CENTRAL ASIA

Largest capacity in development outside KSA

Gross capacity1 in advanced development

Azerbaijan Uzbekistan

Solar (MW)		1,400
Wind (MW)	240	3,652
GH2 (Kton/year)		3
BESS (MWh)2		3,285
CCGT (MW)		1,500

• Committed and fast execution backed by strong governmental bilateral ties
• $8.7B total investment cost1 - largest outside KSA and UAE
• JDAs and MOUs to develop further pipeline in all 3 countries in water and renewables
• Partnering with Masdar and SOCAR to develop 500MW renewable project in Azerbaijan.

Source: Company information. | 1 Gross capacities or total investment costs of projects that are operational, under construction or in advanced development. 2 BESS Nameplate DC installed capacity.

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CHINA

Building renewable capacity larger than all the countries of the world put together

ACWA POWER INVESTOR RELATIONS | www.acwapower.com | [e-mail]

WHY CHINA?

• SIZE

EXISTING RELATIONSHIP

• CONTRACTED OFFTAKE
• FIT TO BUSINESS VERTICALS

With China, ambition is

reached with just 10 countries. Without it, we would need 40+!

Source: Company information and paid consultancy work for the Company.

OPPORTUNITY

• Strong G2G relationships support the strategy, also at Provincial level, with opportunity to access high- quality projects
• Local Provinces with targets to attract FDI and on decarbonization create interesting window in 2024/26
• Initial screening indicate to short-term development opportunity of 5 to 8 projects, mostly together with our existing partners
• Due diligence continues on identified Solar/Wind, Green Hydrogen and Water projects of 2-4GW,~0.3MTPA, 0.3MCM/day

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