Alternus Energy : Q3 2021 IFRS Financial Statements

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Table of Contents

1)

Table of Contents

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1. INTRODUCTION 3
2. EVENTS SUBSEQUENT TO THE YEAR END8

3)

TRANSACTIONS WITH DIRECTORS

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1. IMMEDIATE AND ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY Error!
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1. GROUP COMPANIES Error! Bookmark not defined.
2. DIRECTORS' COMPLIANCE STATEMENT 8

UNAUDITED CONSOLDATED

FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED

30 SEPTEMBER 2021

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Alternus Energy Group Plc and Subsidiaries

Q3 2021 Financial Report - Unaudited

DIRECTORS	Mr. Vincent Browne
Table of Contents	Page Number
Company Information	3
Directors' Report	4 - 8
Consolidated Statement of Comprehensive Income	9
Consolidated Statement of Financial Position	10
Consolidated Statement of Changes in Equity	11
Consolidated Statement of Cash Flows	12	- 13
Notes to the Consolidated Financial Statements	14	- 45

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Alternus Energy Group Plc and Subsidiaries

Q3 2021 Financial Report - Unaudited

Company Information

Directors	Mr. Vincent Browne
	Mr. John Thomas
	Mr. John McQuillan
	Mr. Rolf Wikborg
	Ms. Tone Bjørnov
Secretary	Mr. John McQuillan
Registered Office	Suite 9-10 Plaza 212,
	Blanchardstown Corporate Park 2,
	Blanchardstown, Dublin 15 D15 R504
Registered Number	642708
Solicitors	Carmel, Milazzo & Feil LLP
	Thommessen
	Orrick, Harrington & Sutcliffe (Europe) LLP
	Simmons & Simmons
Bankers	Bank of Ireland
	Chase Bank
	First National Bank
	DNB
	Postbank
	GLS Bank Munchen
	DKB
	Rabobank Zuidwest-Brabant
Auditors	Mazars
	Chartered Accountants & Statutory Audit Firm
	Harcourt Centre, Block 3
	Harcourt Road
	Dublin 2

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Alternus Energy Group Plc and Subsidiaries

Q3 2021 Financial Report - Unaudited

Director's Report for the Nine Months ended 30 September 2021

The directors present herewith their report and unaudited consolidated financial statements for the period ended 30 September 2021. These financial statements reflect the performance of Alternus Energy Group Plc and its subsidiaries ("the Group") for the nine months ended 30 September 2021.

Directors and Secretary

The present directors and secretary are as listed on page 3 and, unless otherwise indicated, have served throughout the period.

Principal Development & Performance Activities Review

Alternus Energy Group Plc ("We", "Alternus" or the "Company" and together with its consolidated subsidiaries, the "Group") was incorporated in Dublin, Ireland on 31 January 2019 under the name Alternus Energy International Limited. On 20 October 2020, the Company re-registered as a Public Limited Company (Plc) and changed its name to Alternus Energy Group Plc.

Alternus Energy Group Plc is a pan-European vertically integrated independent power producer (IPP) that is currently listed on the Euronext Growth Market - Oslo. Headquartered in Ireland, the company is focused on the midsized utility scale solar PV market. Alternus owns and operates a diverse portfolio of utility scale solar PV parks on long-term government contracts and/or power purchase agreements with investment grade off-takers. Having started in 2016 with two parks and 6 megawatt-peak (MWp) capacity, the current operational portfolio totals 130MWp / 24 parks across Poland, Romania, Italy, the Netherlands and Germany. Alternus works closely with local and international specialist development partners providing a constant pipeline of new projects for acquisition and construction. Alternus aims to become one of the largest pan-European IPPs by the end of the decade and expand its operational capacity to 3.5 gigawatts (GW).

The company is headquartered in Ireland and has offices in the United States, Romania, the Netherlands, Italy, and Germany.

Business Summary and Key Performance Indicators

The key performance indicators of the financial results are as follows:

• Completed placement of €110 million (NOK 1.15 billion) green bonds.
• Completed Institutional led private placement of €27 million (NOK 260 million) and €6.9 million
  (NOK 70 million) of fresh equity to fund growth.
• Increased portfolio capacity to 130 MWp.
• Successfully listed on the Euronext Growth Market in Oslo.

The financial statements are presented in Euro which is the functional currency of the Group. Euro- based currency volatility continued during the fiscal year 2021 in relation to the US Dollar, Polish Złoty and Romanian RON, resulting in a foreign exchange loss of €0.19 million for the Group in the year.

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Alternus Energy Group Plc and Subsidiaries

Q3 2021 Financial Report - Unaudited

Significant Changes in the State of Affairs

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements during the nine months ended 30 September2021, the Group had net income of €10.6 million. At 30 September 2021, the Group had €9.4million of unrestricted cash.

The recent outbreak of the coronavirus, also known as COVID-19, has spread across the globe and is impacting worldwide economic activity. COVID-19 has not substantially impacted the operations of the Group and its core operations.

Political Donations

There were no political donations made during the quarter ended 30 September 2021.

Dividends

During the period the Company made no interim dividend payments to ordinary shareholders or preference shareholders.

Future Developments in The Business

Despite the significant global headwinds and uncertainty caused by the COVID-19 pandemic, the group plans to continue acquiring solar parks and continue its footprint of net MW increase to the portfolio.

Principal Risks and Uncertainties

In the opinion of the Directors, the main risks and uncertainties faced by the Group, along with the nature of their potential impact, are as follows:

1. Risks relating to unsuccessful completion of transactions - The Group is currently negotiating several transactions to acquire solar parks in Poland, Germany, Greece, Spain, Romania and elsewhere across Europe. There can be no assurances that the transactions will complete.
2. Risks related to the group and the industry in which it operates:
3. • The Company is a holding company that relies on distributions and other payments, advances, and transfers of funds from its subsidiaries to meet its obligations.
   • The reduction, modification or elimination of government subsidies and economic incentives may reduce the economic benefits of existing solar parks and the opportunities to develop or acquire suitable new solar parks.
   • Decreases in the spot market price of electricity could harm the Group's revenue and reduce the competitiveness of solar parks in grid-parity markets.
   • Risks related to power purchase agreements.

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