Acwa Power : Investor Report Q3

Docusign Envelope ID: A38B184A-DE63-4D82-8789-5DBE9EE81943

ACWA POWER COMPANY

(Saudi Listed Joint Stock Company)

Interim Condensed Consolidated Financial Statements

and Independent Auditor's Review Report

For the Three and Nine Months Periods Ended 30 September 2024

KPMG Professional Services	ةينهملا تاراشتسلال يج مإ يب يك
Roshn Front, Airport Road	راطملا قيرط ،نشور ةهجاو
P.O. Box 92876	92876 ديرب قودنص
Riyadh 11663	11663 ضايرلا
Kingdom of Saudi Arabia	ةيدوعسلا ةيبرعلا ةكلمملا
Commercial Registration No 1010425494	1010425494 مقر يراجت لجس
Headquarters in Riyadh	ضايرلا يف يسيئرلا زكرملا

Independent auditor's report on review of interim condensed consolidated financial statements

To the Shareholders of ACWA Power Company (A Saudi Joint Stock Company)

Introduction

We have reviewed the accompanying 30 September 2024 interim condensed consolidated financial statements of ACWA Power Company ("the Company") and its subsidiaries ("the Group") which comprises:

• the interim condensed consolidated statement of financial position as at 30 September 2024;
• the interim condensed consolidated statement of profit or loss for the three-month and nine-month periods ended 30 September 2024;
• the interim condensed consolidated statement of comprehensive income for the three-month and nine- month periods ended 30 September 2024;
• the interim condensed consolidated statement of cash flows for the nine-month period ended 30 September 2024;
• the interim condensed consolidated statement of changes in equity for the nine-month period ended 30 September 2024; and
• the notes to the interim condensed consolidated financial statements.

Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with IAS 34, 'Interim Financial Reporting' that is endorsed in the Kingdom of Saudi Arabia. Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' that is endorsed in the Kingdom of Saudi Arabia. A review of interim condensed consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia, and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

KPMG Professional Services, a professional closed joint stock company	registered in the Kingdom of Saudi Arabia with a paid-up capital of SAR70,000,000 and a non-partner member firm of the KPMG global
organization of independent member	firms affiliated with KPMG International Limited, a private English company limited by guarantee.
	.

ةعباتلاو ةلقتسملا يج مإ يب يك تاكرشل ةيملاعلا ةكبشلا يف كيرش ريغ وضع يهو،لماكلاب عوفدم يدوعس ريال ) 70,000,000( اهلام سأر ،ةيدوعسلا ةيبرعلا ةكلمملا يف ةلجسم ،ةلفقم ةمهاسم ةينهم ةكرش ةينهملا تاراشتسلال يج مإ يب يك

.نامضب ةدودحم ةيزيلجنا ةكرش ،ةدودحملا ةيملاعلا يج مإ يب يك ـل

Independent auditor's report on review of interim condensed consolidated financial statements

To the Shareholders of ACWA Power Company (A Saudi Joint Stock Company) (continued)

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying 30 September 2024 interim condensed consolidated financial statements of ACWA Power Company ("the

Company") and its subsidiaries are not prepared, in all material respects, in accordance with IAS 34, 'Interim Financial Reporting' that is endorsed in the Kingdom of Saudi Arabia .

KPMG Professional Services

Dr. Abdullah Hamad Al Fozan

License Number 348

Riyadh on 5 Jumada Al Awwal 1446H

Corresponding to: 7 November 2024

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Docusign Envelope ID: A38B184A-DE63-4D82-8789-5DBE9EE81943

ACWA POWER Company

(Saudi Listed Joint Stock Company)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(All amounts in Saudi Riyals thousands unless otherwise stated)

		As of		As of
	Note	30 Sep 2024		31 Dec 2023
ASSETS
Non-current assets
Property, plant and equipment	3	10,890,512	10,292,460
Intangible assets		2,030,853	2,047,374
Equity accounted investees	4	17,095,659	15,873,449
Net investment in finance lease		10,975,585	11,234,491
Deferred tax asset		196,528	153,323
Fair value of derivatives	19	379,469	754,927
Other assets		393,763	379,812
Total non-current assets		41,962,369	40,735,836
Current assets
Inventories		590,223	479,322
Net investment in finance lease		425,450	382,185
Fair value of derivatives	19	75,239	88,153
Due from related parties	8	2,109,268	1,356,247
Accounts receivable, prepayments and other receivables		3,974,285	3,214,580
Short term investments	6	3,302,866	1,217,791
Cash and cash equivalents	5	2,613,694		4,740,941
		13,091,025	11,479,219
Assets held for sale	16.1	31,124	2,803,259
Total current assets		13,122,149	14,282,478
Total assets		55,084,518		55,018,314

Chairman B.O.D.

CEO

CFO

The attached notes 1 to 24 form an integral part of these interim condensed consolidated financial statements.

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Docusign Envelope ID: A38B184A-DE63-4D82-8789-5DBE9EE81943

ACWA POWER Company

(Saudi Listed Joint Stock Company)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

(All amounts in Saudi Riyals thousands unless otherwise stated)

		As of		As of
	Note	30 Sep 2024		31 Dec 2023
EQUITY AND LIABILITIES
Equity
Shareholders' equity
Share capital		7,148,765	7,134,143
Share premium		5,335,893	5,335,893
Treasury shares	20.1	(106,620)	-
Statutory reserve		1,038,937	1,038,937
Retained earnings		4,545,827	3,247,401
Proposed dividends	21	-	328,995
Equity attributable to owners of the Company before other
reserves		17,962,802	17,085,369
Other reserves	9	558,186		2,072,589
Equity attributable to owners of the Company		18,520,988	19,157,958
Non-controlling interest		2,300,522	1,550,933
Total equity		20,821,510	20,708,891
Liabilities
Non-current liabilities
Long-term financing and funding facilities	7	24,719,939	23,549,709
Due to related parties	8	883,220	854,938
Deferred tax liability		187,075	163,476
Obligation for equity accounted investees	4	1,053,693	623,129
Fair value of derivatives	19	76,511	62,908
Deferred revenue		141,835	139,746
Employee end of service benefits' liabilities		223,677	211,298
Other liabilities		896,906	767,562
Total non-current liabilities		28,182,856	26,372,766
Current liabilities
Accounts payable, accruals and other financial liabilities		3,738,326	3,149,023
Short-term financing facilities		391,219	316,876
Current portion of long-term financing and funding facilities	7	1,344,500	1,613,301
Due to related parties	8	84,148	79,157
Fair value of derivatives	19	327,932	-
Zakat and taxation		194,027		194,095
		6,080,152	5,352,452
Liabilities associated with assets held for sale		-	2,584,205
Total current liabilities		6,080,152		7,936,657
Total liabilities		34,263,008		34,309,423
Total equity and liabilities		55,084,518		55,018,314

Chairman B.O.D.

CEO

CFO

The attached notes 1 to 24 form an integral part of these interim condensed consolidated financial statements.

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Docusign Envelope ID: A38B184A-DE63-4D82-8789-5DBE9EE81943

ACWA POWER Company

(Saudi Listed Joint Stock Company)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

(All amounts in Saudi Riyals thousands unless otherwise stated)

	For the three months	For the nine months period
Note	period ended 30 Sep	ended 30 Sep
2024	2023	2024	2023

Continuing operations

Revenue

Operating costs

Gross profit

Development cost, provisions and write offs, net of reversals

General and administration expenses

Share in net results of equity accounted investees, net of zakat and tax

Gain from divestments Other operating income

11		1,747,440	1,542,128	4,561,765	4,285,492
		(747,652)		(664,642)	(2,104,517)	(1,912,390)
		999,788	877,486	2,457,248	2,373,102
		(120,947)	(28,207)	(188,027)	(54,123)
		(534,297)	(314,010)	(1,316,277)	(845,798)
4		460,418	80,860	634,051	211,956
16.2		-	-	401,701	-
12		171,319		198,067		376,438		417,781

Operating income before impairment loss and other		976,281	814,196	2,365,134	2,102,918
expenses
Impairment loss and other expenses, net	20.2	(12,741)		8,263		(190,573)		3,631
Operating income after impairment loss and other		963,540	822,459	2,174,561	2,106,549
expenses
Other income, net	13	(266,227)	46,005	103,972	77,277
Finance income		70,907	52,081	236,192	159,430
Exchange (loss) / gain, net		(9,947)	10,735	(3,922)	7,160
Financial charges	14	(353,835)		(412,023)	(1,100,628)	(1,102,442)
Profit before zakat and income tax		404,438	519,257	1,410,175	1,247,974
Zakat and tax charge	10.1	(38,742)		(107,781)		(106,461)		(71,653)
Profit for the period from continuing operations		365,696	411,476	1,303,714	1,176,321

Discontinued operations

Gain from discontinued operations including loss recognised on assets held for sale

Profit for the period

Profit attributable to:

Equity holders of the parent

Non-controlling interests

Basic and diluted earnings per share to equity holders of the parent (in SR)

Basic and diluted earnings per share from continuing operations to equity holders of the parent (in SR)

	-			846			-	(8,410)
	365,696			412,322		1,303,714	1,167,911
	328,099		397,940		1,254,890	1,082,077
	37,597		14,382		48,824	85,834
	365,696		412,322		1,303,714	1,167,911
15.2		0.45			0.54			1.71		1.48
15.2		0.45			0.54			1.71		1.49

Chairman B.O.D.

CEO

CFO

The attached notes 1 to 24 form an integral part of these interim condensed consolidated financial statements.

5

Docusign Envelope ID: A38B184A-DE63-4D82-8789-5DBE9EE81943

ACWA POWER Company

(Saudi Listed Joint Stock Company)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(All amounts in Saudi Riyals thousands unless otherwise stated)

			For the three months	For the nine months period
	Note		period ended 30 Sep		ended 30 Sep
		2024			2023	2024	2023
Profit for the period		365,696			412,322	1,303,714	1,167,911
Other comprehensive income / (loss)
Items that are or may be reclassified
subsequently to profit or loss
Foreign operations - foreign currency translation
differences		772			8,612	13,303	(7,516)
Change in fair value of cash flow hedge reserve		(1,129,401)			1,025,283	(385,429)	1,446,451
Settlement of cash flow hedges transferred to profit
or loss		77,720			19,705	156,392	50,397
Cash flow hedge reserve recycled to profit or loss
upon discontinuation of hedge relationships	9, 13.1	327,932			-	(15,491)	-
Cash flow hedge reserve recycled to profit or loss
on loss of control of subsidiaries	16.2	-			-	(508,538)	-
Equity accounted investees - share of OCI	4, 9	(1,811,761)			1,098,885	(857,704)	1,111,274
Cash flow hedge reserve associated with equity
accounted investees recycled to profit or loss upon
discontinuation of hedge relationships		-			(6,769)	-	(6,769)
Items that will not be reclassified to profit or
loss
Re-measurement of defined benefit liability		2,894			2,312	7,604	(6,550)
Total other comprehensive (loss) / income		(2,531,844)			2,148,028	(1,589,863)		2,587,287
Total comprehensive (loss) / income		(2,166,148)			2,560,350	(286,149)	3,755,198
Total comprehensive (loss) / income attributable
to:
Equity holders of the parent		(2,144,360)			2,482,808	(312,894)	3,615,662
Non-controlling interests			(21,788)			77,542		26,745		139,536
		(2,166,148)			2,560,350	(286,149)	3,755,198

Chairman B.O.D.

CEO

CFO

The attached notes 1 to 24 form an integral part of these interim condensed consolidated financial statements.

6

Docusign Envelope ID: A38B184A-DE63-4D82-8789-5DBE9EE81943

ACWA POWER Company

(Saudi Listed Joint Stock Company)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

(All amounts in Saudi Riyals thousands unless otherwise stated)

				For the nine months period
	Note		ended 30 Sep
			2024	2023
Cash flows from operating activities
Profit before zakat and tax from continuing operations			1,410,175	1,247,974
Loss before zakat and tax from discontinued operations			-	(8,410)
Adjustments for:
Depreciation and amortisation			356,354	341,992
Financial charges	14		1,100,628	1,102,442
Unrealised exchange loss			(1,042)	(6,866)
Share in net results of equity accounted investees, net of zakat and tax			(634,051)	(207,902)
Charge for employees' end of service benefits			43,798	24,618
Fair value of cash flow hedges recycled to profit or loss			3,631	4,837
Amortisation of other long-term assets			12,341	12,341
Provisions			218,382	30,562
Provision for long-term incentive plan			51,113	26,250
Gain on disposal of property, plant and equipment			(7,595)	(3,722)
Impairment loss	20.2		145,799	-
Gain from divestments	16.2		(401,701)	(3,398)
Development cost, provisions and write offs, net of reversals			188,027	54,123
Loss on disposal of equity accounted investee			-	8,628
Gain on discontinuation of hedging instruments	13.1		(15,491)	-
Finance income from shareholder loans and deposits			(387,035)	(321,913)
Discounting impact of financial liability	13		(58,298)	-
Gain on remeasurement of derivatives and options	13		-		(54,412)
			2,025,035	2,247,144
Changes in operating assets and liabilities:
Accounts receivable, prepayments and other receivables			(1,084,593)	(801,797)
Inventories			(117,054)	(53,950)
Accounts payable, accruals and other liabilities			1,236,272	235,160
Due from related parties			(509,007)	210,122
Due to related parties			(2,526)	(38,491)
Net investment in finance lease			140,722	225,382
Deferred revenue				2,089		(118)
Net cash from operations			1,690,938	2,023,452
Payment of employees' end of service benefits and long-term incentives			(45,525)	(53,757)
Zakat and tax paid			(131,367)	(177,521)
Dividends received from equity accounted investees			75,530	69,467
Net cash generated from operating activities			1,589,576	1,861,641
Cash flows from investing activities
Addition to property, plant and equipment, and intangible assets			(2,286,937)	(3,145,856)
Proceeds on disposal of equity accounted investees, net of transaction cost			-	74,019
Proceeds on disposal of property, plant and equipment			11,915	8,025
Investments in equity accounted investees			(615,232)	(3,617,294)
Finance income from deposits			236,192	159,430
Short-term deposits with original maturities of more than three months	6		(2,085,075)	(1,507,247)
Proceeds on partial disposal of subsidiary without loss of control			835,121	-
Cash deconsolidated on loss of control			(313,050)	(713,198)
Net cash used in investing activities				(4,217,066)		(8,742,121)

The attached notes 1 to 24 form an integral part of these interim condensed consolidated financial statements.

7

Docusign Envelope ID: A38B184A-DE63-4D82-8789-5DBE9EE81943

ACWA POWER Company

(Saudi Listed Joint Stock Company)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

(All amounts in Saudi Riyals thousands unless otherwise stated)

			For the nine months period
	Note		ended 30 Sep
		2024	2023
Cash flows from financing activities
Proceeds from financing and funding facilities, net of transaction cost		2,388,397	6,534,922
Repayment of financing and funding facilities		(647,591)	(518,068)
Purchase of treasury shares	20.1	(118,000)	-
Financial charges paid		(1,105,529)	(1,099,987)
Proceeds from discontinuation of hedge instruments	13.1.1	343,423	-
Dividends paid		(383,285)	(682,391)
Capital contributions from and other adjustments to non-controlling interest			21,247		189,762
Net cash generated from financing activities			498,662		4,424,238
Net decrease in cash and cash equivalents during the period		(2,128,828)	(2,456,242)
Cash and cash equivalents at the beginning of the period		4,740,941	6,154,524
Cash and cash equivalents in relation to assets classified as held for sale		-	(406,926)
Net foreign exchange difference		1,581	(3,653)
Cash and cash equivalents at the end of the period	5		2,613,694		3,287,703

Chairman B.O.D.

CEO

CFO

The attached notes 1 to 24 form an integral part of these interim condensed consolidated financial statements.

8

Docusign Envelope ID: A38B184A-DE63-4D82-8789-5DBE9EE81943

ACWA POWER Company

(Saudi Listed Joint Stock Company)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(All amounts in Saudi Riyals thousands unless otherwise stated)

																															Equity
																															attributable
																							Proposed				Other				to owners				Non-
			Share				Share				Treasury				Statutory				Retained				dividends				Reserves				of the				controlling					Total
			capital				premium				shares				reserve				earnings				(note 21)				(note 9)				parent				interests					equity
Balance at 1 January 2023	7,134,143	5,335,893	-	872,766	2,080,853	606,813	2,629,419	18,659,887	1,368,507	20,028,394
Profit for the period		-	-	-	-	1,082,077	-	-	1,082,077	85,834	1,167,911
Other comprehensive income		-	-	-	-	-	-	2,533,585	2,533,585	53,702	2,587,287
Total comprehensive income	-	-	-	-	1,082,077	-	2,533,585	3,615,662	139,536	3,755,198
Changes to non-controlling interests	-	-	-	-	-	-	-	-	189,762	189,762
Dividends (note 21)	-	-	-	-	-	(606,813)	-	(606,813)	(76,230)	(683,043)
Balance at 30 September 2023		7,134,143			5,335,893			-			872,766			3,162,930			-			5,163,004			21,668,736			1,621,575			23,290,311
Balance at 1 January 2024	7,134,143	5,335,893	-	1,038,937	3,247,401	328,995	2,072,589	19,157,958	1,550,933	20,708,891
Profit for the period			-	-	-	-	1,254,890	-	-	1,254,890	48,824	1,303,714
Other comprehensive income / (loss)			-	-	-	-	-	-	(1,567,784)	(1,567,784)	(22,079)	(1,589,863)
Total comprehensive income / (loss)	-	-	-	-	1,254,890	-	(1,567,784)	(312,894)	26,745	(286,149)
Changes to non-controlling interests	-	-	-	-	-	-	-	-	21,247	21,247
Bonus shares issued (note 21)	14,622	-	-	-	(14,622)	-	-	-	-	-
Purchase of treasury shares (note 20.1)	-	-	(118,000)	-	-	-	-	(118,000)	-	(118,000)
Dividends (note 21)	-	-	-	-	-	(328,995)	-	(328,995)	(54,290)	(383,285)
Share-based payment transactions (note 20.1)	-	-	-	-	-	-	77,610	77,610	-	77,610
Settlement of treasury shares (note 20.1)	-	-	11,380	-	6,904	-	(18,284)	-	-	-
Divestment in subsidiary without loss of	-	-	-	-	51,254	-	(5,945)	45,309	755,887	801,196
control (note 20.3)
Balance at 30 September 2024		7,148,765		5,335,893		(106,620)		1,038,937		4,545,827		-		558,186		18,520,988		2,300,522		20,821,510

Chairman B.O.D.

CEO

CFO

The attached notes 1 to 24 form an integral part of these interim condensed consolidated financial statements.

9