Alpha Namibia Industries Renewable Energy Power : Audited Annual Results For the Year Ended 28 February 2022

NOTICE TO SHAREHOLDERS

Alpha Namibia Industries Renewable Power Limited (Incorporated in the Republic of Namibia) Registration Number 2018/0148

NSX Share code: ANE

ISIN: NA000A2JQ364 ("ANIREP" or the "Company")

GROUP FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2022

STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

for the year ended 28 February 2022

	Group Audited	Company Audited
	Year ended 28	Year ended	Year ended	Year ended
	February	28 February	28 February	28 February
	2022	2021	2022	2021
	N$	N$	N$	N$
Revenue	166,916,362	69,722,176	4,014,793	1,504,635
Gross profit	65,157,916	43,692,436	4,014,793	1,504,635
Operating profit	25,598,775	10,807,896	(3,057,917)	(7,014,181)
Profit before taxation	13,899,068	3,384,485	(2,667,181)	(4,714,296)
Taxation	(5,390,222)	(2,697,210)	-	-
Profit/(Loss) for the year	8,508,846	687,275	(2,667,181)	(4,714,296)
Number of shares in issue	16,881,847	16,881,847	16,881,847	16,881,847
Headline earnings (no adjustment required)	8,508,846	687,275	(2,667,181)	(4,714,296)
EBITDA	35,060,904	17,257,827	(2,808,103)	(6,903,997)
Net asset value per share (cents per share)	1,048	998	924	940
Basic and Headline earnings per share (cents)	50.4	4 .1	(15.8)	(27.9)
Dividend per share	Nil	Nil	Nil	Nil

Key features

• ANIREP achieved revenue for the year of N$166.9 million a 139.4% increase from N$69.7 million for previous financial year. The increase is mainly due to a N$317 million 20MW power plant, Omburu project that HopSol Africa constructed for NamPower. During the year the revenue from the Omburu project which was commissioned and handed over in March 2022 was N$119 million.
• ANIREP Solar (Pty) Ltd continued to generate a steady N$38 million on the back of the PPAs with NamPower and CENORED which are in place until 2040 and 2041 respectively.
• During the year ANIREP Solar (Pty) Ltd acquired 55% of Access Aussenkjer Solar One Namibia (Pty) Ltd which was subsequently renamed ANIREP Aussenkjer Solar One Namibia (Pty) Ltd (AASON) for a consideration of N$9 million dollars. AASON is an SPV that won the tender to construct a 20MW PV Khan plant on a Build Own and Operate (BOO) basis with a 25 year power purchase agreement with NamPower. Commercial Operation Date (COD) for this project is expected to be in the second quarter of 2023. No trading for AASON took place in the year under review.
• ANIREP generated the following for the year:

1. Revenue of N$166.9 million higher than previous year of N$69.7 million

1. Gross profit of N$65.2 million, at a margin of 39% which is lower than previous year's 63% due to

upward pressure Covid-19 had on the prices of Solar Panels, Inventors, Trackers, Copper, Steel and logistical costs experienced with Omburu project under HopSol Africa.

1. EBITDA of N$35.1 million shows a 103% increase from 2021 financial year EBITDA of 17.3 million. This is in line with increase in revenue. The business continues to generate cash in line with the nature of the long term PPAs, Engineering Procurement and Construction (EPC), and Operation &

Maintenance (O&M). HopSol Africa revenue are cyclical in nature and that they are underpinned by quantum of the projects size under EPC contracts for that period.

1. Profit before tax of N$13.9 million (28 Feb 2021: N$3.4 million)

1. Basic earnings per share of 50.4 cents up from 4.1 cents for the year ended 28 February 2021. o Headline earnings per share of 50.4 cents (29 Feb 2021: 4.1 cents).

ANIREP Managing Director Iyaloo Nangolo said:

"I am pleased that the ANIREP Group in its infancy stage continues to grow revenue and posting profits through the extraordinary performance of EPC contractor, HopSol Africa as well as consistent performance of PV Utility Power Plants. With a solid platform with predictable and sustainable long-term cash flows, ANIREP generated EBITDA of N$35.1 million and operating cash flow of N$5.4 million for the year ended 28 February 2022. We have a healthy pipeline of projects, which include expanding our existing capacity of 10.73 MW PV Power and installing battery storage for our current and future PPA utility clients. We will continue to pursue installation of renewable energy to contested buyers, further acquisition and capacity development opportunities."

Group financial performance

ANIREP was created to provide a bridge for Capital Markets into the Infrastructural Renewable Energy Projects. The Company intends to provide investors with good, predictable, and long-term yielding investments generating a consistent return on equity over the long term.

The Group posted revenue of N$166.9 million, investment income from short terms investments amounted to N$5.4 million, while interest expense of N$17 million was paid out to lenders of ANIREP. ANIREP posted a comprehensive income for the year of N$8.5 million which is ahead of J-Curve expectations whereby cumulative IRR is initially expected to dip before positive returns can be achieved after a 5-year period. ANIREP is reaping the benefits of investing in both EPC contractor, HopSol Africa as well as IPP ANIREP Solar. HopSol Africa while driving ANIREP's growth strategy, is involved in the EPC development of Solar Power plants which adds value to shareholders. Through EPC development, revenue is generated for the Group even before COD and subsequent revenue in operation and maintenance services post COD. The Solar PV Plants (if owned by ANIREP) will further generate value for shareholders through 25-year PPAs after COD. ANIREP investments are long term in nature with lifespans of 25 years, thus, the targeted IRR returns are achieved in the medium to long term.

Interim dividend

No dividends were declared or paid during the period under review (28 Feb 2021: N$ Nil).

Outlook

We have a healthy pipeline of projects, and ANIREP is at an advanced stage in negotiating for the expansion of capacity at one of our current IPP clients from their current 5MW capacity, by adding another 6MW of Solar PV and 3 MW/30MWh of Battery Energy Storage System. At the same time, ANIREP is also finalising negotiations with Dundee Precious Metal Tsumeb for a 18,5 MWac Solar PV installation under MSB framework through wheeling renewable power in the national grid from Kokerboom Sub Station in Keetmanshoop. Namibia is facing a deficit in energy, resulting in importation from Southern African Power Pool. With a vision of becoming a 30% player in the renewable energy sector, ANIREP will continue to pursue installation of renewable energy to contested buyers, further acquisitions and capacity development opportunities and EPC and O&M works, with the view to increasing shareholder value.

This is in line with Namibia's target to become a net-exporter of renewable sourced electricity by 2030 and the National Integrated Resource Plan estimate that 70% or more of the electricity installed capacity will come from renewable sources by 2030.

Namibia is endowed with abundant wind and solar resources making it one of the lowest cost renewable energy production areas in the world. Our unique vertically integrated structure of being an IPP which also owns the leading EPC company in Namibia in renewable energy development, has positioned ANIREP to be at the forefront in providing affordable renewable power in the country."

Short form announcement

This short form announcement is the responsibility of the directors. It is only a summary of the information contained in the full announcement and does not contain full or complete details.

Any investment decision should be based on the full announcement accessible from 15th June 2022, via the NSX link: https://senspdf.jse.co.za/documents/2022/nsx/isse/anenm/anefeb2022.pdf

Alternatively, the full announcement is available on our website at:

https://anirep.com/documents/Annual_Financial_Statement_as_at_end_of_February_2022.pdf

The condensed consolidated financial statements for the year ended 28 February 2022 have been audited by Ernst

• Young. A copy of the auditor's review report and the full announcement of the annual financial statements are available for inspection at ANIREP's registered office at no charge, weekdays during office hours.

Non-ExecutiveDirectors: M. Hengari (Chairperson), S. Oosthuysen, Amb. P. Kambala, G. Nakazibwe-Sekandi***, M Demamu**, S Mayinga****, F G Kisting

Executive Directors: I. Nangolo, H. Hamukoto, A. Myllärinen*, J Nyandoro***** *Finnish

**Ethiopian

***Ugandan

****South African

*****Zimbabwean

Postal address: P.O. Box 90680, Klein Windhoek, Windhoek, Namibia

Registered address: 47 Nelson Mandela Avenue, Klein Windhoek, Windhoek, Namibia

Auditors

Ernst & Young

Registered Accountants and Auditors

Cnr Otto Nitzsche and Maritz Streets

Klein Windhoek,

Windhoek, Namibia

Company Secretaries

Ellis Shilengudwa Incorporated 1st Floor, 1@Steps Offices, c/o Grove & Chasie Street, Kleine Kuppe,

Windhoek, Namibia

By order of the Board

15 June 2022

Sponsor

Registration Number: 98/463

Member of the Namibian Stock Exchange