ACWA Power : Investor Report for the three and nine months periods ended 30 September 2022

ACWA POWER

Investor Report

Third Quarter and Nine-Month 2022

ACWA POWER Company (ACWA Power)

Investor Report

For the three- and nine-months periods ended 30 September 2022 "Third Quarter and Nine- Month 2022"

ACWA Power Investor Relations www.acwapower.com | [e-mail]

ACWA POWER

Investor Report

Third Quarter and Nine-Month 2022

CEO's Letter

Dear stakeholders,

During a quarter marked by rising interest rates and tumbling risk sentiment, we have achieved several important milestones in our project development and operational platforms while delivering a robust financial performance with both operating profit1 and adjusted net profit growing versus last year.

In addition to the signing of a share purchase agreement with China's Silk Road Fund as co-investor for 49% of the SAR3.75billion, 1.5GW Sirdarya combined cycle gas turbine (CCGT) facility in Uzbekistan, we also signed the Heads of Terms agreement with Uzbekistan's Ministry of Energy and Ministry of Investment & Foreign Trade for a SAR9billion, 1.5GW wind project, located in Karakalpakstan, Uzbekistan.

On the operational side, we brought the Naqa'a IWP, located in the Emirate of Umm Al Quwain, UAE, fully online, which reached its full capacity of 681.9 thousand cubic meter/day desalinated potable water, following its partial achievement of commercial operation back in December 2021 with 33% of its full capacity.

Just as we entered the last quarter of the year, and ahead of schedule, the second 300MW unit of the Shuaa Energy 3 became operational, carrying the total online capacity of the plant to 600MW. Once the remaining under-construction 300MW is complete approximately in a year's time, total capacity of the plant will reach the contracted capacity of this solar PV IPP, representing the Phase V of the MBR Solar Park located in the Emirate of Dubai, UAE.

As another significant milestone, just before the end of October, we successfully achieved the financial close for the Shuaibah 3 IWP Project and raised approximately SAR 2.4 billion of senior debt facilities arranged on a non-recourse project finance basis from a consortium of financiers. Replacing our existing Shuaibah co-generation plant by converting it to a reverse osmosis water desalination plant with an estimated total investment cost of SAR 3.1 billion, once completed this project will save about 9 million tons per annum of CO2 emissions.

I expect this momentum to continue in the rest of the year with a few more financial closes substantially ready to be closed; the bidding process for the Saudi Power Procurement Company's (SPPC) fourth phase of the National Renewable Energy Program with a total capacity of 3.3GW already announced; and the expected PPA signing for the development of the next mega renewable energy projects in the PIF Renewable Energy deployment pipeline.

While we are all navigating the global economic headwinds that are spinning in multiple directions, it is a privilege to witness continuing investor confidence since our initial public offering back in October 2021. This is a testament to the strength and resilience of our business model and the 3,900-strong ACWA Power family. These two indispensable and intermingled elements constitute the backbone of ACWA Power's winning proposition, which allowed us to steer through the recent unexpected global disruptions and will continue to do so to deliver on our targets and commitments to create uninterrupted sustainable value for all our stakeholders.

Paddy Padmanathan

Vice Chairman and CEO

1 Operating profit before impairment loss and other expenses.

ACWA Power Investor Relations	2
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ACWA POWER

Investor Report

Third Quarter and Nine-Month 2022

Highlights (as at and year-to-date 30 September 2022)

67

ASSETS

Asset Portfolio

ACWA Power's portfolio consists of

42 operational, 11 under construction and

14 advanced development assets. Gross power generation and water desalination capacity of the portfolio reached 42.7 GW and 6.2 million cubic meters per day, with a portfolio value of SAR 249.2 billion at Total Investment Cost (TIC).

Renewable and Low Co²

At 15.7 GW, renewable assets represented 36.7% of gross power capacity, and, including natural gas projects, the ratio of low CO2 emitting assets constituted 85% of ACWA Power's gross power generation capacity as at 30 September 2022. A pioneer in globally landmark large-scale initiatives such as green hydrogen and giga-cities together with its JV partners, ACWA Power is dedicated to reduce its carbon intensity gradually targeting to reach net zero emissions status by 2050.

15.7GW 36.7%

renewable assets capacity gross power capacity

zeronet emissionsby 2050

Financial Highlights

Operating income	Profit attributable to	Adjusted profit attributable
before impairment loss
and other expenses	equity holders of parent	to equity holders of parent
1,877mn	883 mn	858mn
SAR	SAR	SAR
11.2	110.4	6.8

Operational Highlights

87.3%	Power Availability
	(9M2021: 89.9%)
96.3%	Water Availability
	(9M2021: 92.7%)

ACWA Power Investor Relations	3
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ACWA POWER

Investor Report

Third Quarter and Nine-Month 2022

ACWAPOWERCOMPANYANDITSSUBSIDIARIES(SaudiListed JointStockCompany)("ACWAPower"orthe"Company")

Management's discussion and analysis of the financial results for the three- and nine-months periods ended 30 september 2022

1- Introduction

This section provides an analytical review of the financial results of ACWA Power for the three- and nine-months periods ended 30 September 2022 (collectively the "first nine months of 2022" or "9M2022"), and it should be read in conjunction with the Company's Interim Condensed Consolidated Financial Statements and Independent Auditor's Review Report for the Three- and nine-months Periods Ended 30 September 2022 issued by Ernst & Young & Co. (Certified Public Accountants).

All amounts are in SAR (or SR) thousand, unless stated herein otherwise. Percentages have also been rounded up to available number of digits presented in the tables. A calculation of the percentage increase/decrease based on the amounts presented in the tables may not therefore be exactly equivalent to the corresponding percentages as stated.

"Current Quarter" or "3Q2022" or "the third quarter of 2022" corresponds to the three-months period ended 30 September 2022 whereas "3Q2021" or "the third quarter of 2021" corresponds to the three-months period ended 30 September 2021. "Year-to-date" or "9M2022" or "9M2021" corresponds to the nine-months period ended 30 September of the year mentioned.

In the Company's Interim Condensed Consolidated Financial Statements and Independent Auditor's Review Report for the Three- and nine-months Periods Ended 30 September 2022 issued by Ernst & Young & Co. (Certified Public Accountants), certain figures for the prior periods have been reclassified to conform to the presentation in the current period. Please refer to the Company's Interim Condensed Consolidated Financial Statements and Independent Auditor's Review Report for the Three- and nine-months Periods Ended 30 September 2022, Note 23.

This section may contain data and statements of forward-looking nature that may entail risks and uncertainties. The Company's actual results could differ materially from those expressed or implied in such data and statements as a result of various factors.

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ACWA POWER

Investor Report

Third Quarter and Nine-Month 2022

2- Key factors affecting the comparability of operational and financial results between reporting periods

Although the Company's business model of Develop, Invest, Operate, Optimize allows it to generate and capture returns over the full life cycle of a project, these returns may differ from one reporting period to another, depending on the number of projects in the Company's portfolio and where these projects are in their project life cycles (i.e., in advanced development, under construction or in operation). Projects achieving financial close ("FC") and projects achieving either initial or final commercial operation dates ("ICOD" or "PCOD" respectively) are typical examples that may lead to such variances in the values presented on the financial statements from one period to another, potentially rendering analysis of these variations unreasonable without additional transparency.

The Company considers this or similar type of transactions as "ordinary course of business." Accordingly, the financial value of these transactions does not lead into any "financial adjustment" in the Company's reported consolidated net profit for the period attributable to equity holders of the parent ("Reported Net Profit"). Material ordinary-course-of- business transactions that did not result in adjustment to the Reported Net Profit for the Current Quarter are disclosed in Section 2.1 below.

In addition to above, there may be transactions that the management would consider as non-routine or non- operational as they are non-recurring in nature insofar as they are not expected to repeat in the future. The impact of such transactions on the Reported Net Profit are adjusted in the respective period of their realizations to arrive at adjusted net profit attributable to equity holders of the parent ("Adjusted Net Profit") for the concerned period. Material transactions that resulted in adjustment to the Reported Net Profit for the Current Quarter are disclosed in Section 2.2 below.

A summary table for all transactions that the Company considered within the above-defined framework during the past 21 months (from 1 January 2021 to 30 September 2022), excluding lists of FCs and ICODs that are separately covered in Section 2.1, is provided below for ease of reference. Transactions that have affected the Current Quarter, if any, are separately discussed and analyzed in sections 2.1 and 2.2. For all other transactions in prior periods please refer to the summary table below, the Company's Investor Report for the corresponding period or to the IPO Prospectus.

ACWA Power Investor Relations	5
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