ContourGlobal : 2022 Annual Audited Financial Statements

Annual Report and

Financial Statements

for the Year ended 31 December 2022

for

ContourGlobal Limited

(formerly ContourGlobal plc)

ContourGlobal Limited (formerly ContourGlobal plc)

(Registered number: 10982736)

Contents of the Annual Report and Financial Statements

for the Year ended 31 December 2022

TABLE OF CONTENTS

Strategic Report	4
Directors Report	29
Auditors Report	33
Consolidated Financial Statements	42
Company Financial Statements	137

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ContourGlobal Limited (formerly ContourGlobal plc)

(Registered number: 10982736)

Company Information

for the Year ended 31 December 2022

DIRECTORS:	Joseph Brandt
	Laurent Hullo (appointed 31 January 2023)

REGISTERED OFFICE:	55 Baker Street
	5th Floor
	London
	W1U8EW
	United Kingdom
REGISTERED NUMBER:	10982736
AUDITORS:	PricewaterhouseCoopers LLP
	7 More London Riverside
	London
	SE1 2RT
	United Kingdom

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ContourGlobal Limited (formerly ContourGlobal plc)

(Registered number: 10982736)

Strategic Report

for the Year ended 31 December 2022

The directors present their strategic report for the year ended 31 December 2022.

Principal Activities and Future Developments

The principal activity of the Group is to develop, acquire, own and operate power generation assets around the world, producing reliable energy responsibly. ContourGlobal operates 129 thermal and renewable power generation assets in 20 countries across Europe, Latin America, North America and Africa, with a total installed capacity of over 6.1 GW. We add value through best-in-class operations both in our existing portfolio and in the new assets we develop or acquire.

The future performance of the business will depend on a number of factors, such as the supply and demand dynamics of energy markets, decarbonisation and the timing and mix of generation sources from the energy transition. Inherent in these factors are a number of risks and opportunities which we believe the business is well placed to approach.

Acquisition of ContourGlobal plc by KKR

The recommended cash acquisition (the "Transaction") of ContourGlobal plc by Cretaceous Bidco Limited (a newly formed company indirectly owned by funds advised by Kohlberg Kravis Roberts & Co. L.P. and its affiliates) ("KKR") announced on 17 May 2022 was approved by the required majority of shareholders at the Court and General meeting of shareholders held on 6 July 2022. The scheme of arrangement became effective on 20 December 2022 resulting in KKR taking ownership of 100% of the shareholding of ContourGlobal plc and following this the Company was delisted from the London Stock Exchange on 21 December 2022.

Business Model

Our purpose is to create economic and social value through developing, acquiring, and operating electricity generation businesses worldwide. In this regard, our strategy is built on operational excellence, high growth and financial strength throughout our business.

We supply electricity principally in the wholesale market, mainly selling it under long-term contracts to clients, or 'offtakers', who transmit and sell it to retail customers. These contracts are typically:

• Power Purchase Agreements (PPAs) by which the power plant gets remunerated to be available to generate electricity; and
• Regulated tariffs or other regulated mechanisms, by which we agree a price per unit of electricity output.

Because the vast majority of our revenues are derived from long-term contracts or long-term regulated tariffs with creditworthy counterparties, cash flows are typically predictable and risk is reduced. This gives us good visibility of long-term,de-risked cash flows, which allows us to manage our capital in an effective manner.

Our customers include national grids and utilities that supply these grids, as well as commercial and industrial customers that receive electricity, steam, water, or CO2 directly from on-site facilities.

Our portfolio is diversified across different technologies, and geographies. At the end of 2022, we owned and operated 129 thermal and renewable power generation assets in Europe, Latin America, North America and Africa, with a total installed capacity of 6.1 GW.

Our purpose and strategy are underpinned by three strategic pillars, our four sustainable business principles and five values as set out below.

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ContourGlobal Limited (formerly ContourGlobal plc)

(Registered number: 10982736)

Our Strategy

Our overall strategy to achieve our purpose is built on three pillars:

Operational Excellence		High Growth	Financial Strength
Striving to achieve operational	To achieve high growth, we adopt	Strong operational performance
excellence, which includes health	four core investment approaches	combined with an efficient capital
and safety, lies at the heart of all we	focused on contracted or regulated	structure have allowed us to deliver
do.	wholesale power generation,	superior returns at asset level.
We have a Target Zero commitment	fostering low- and no-carbon	Our business model is based on
in respect of health and safety -	technologies:	contracted or regulated revenue
that is, a target of zero Lost Time	1.	Greenfield development: when	streams combined with operational
Incident (LTIs).		we can take advantage of cyclical	excellence, which results in stable
Ensuring a safe working		under-supply of capital and	and predictable cash flow
environment is also one of our core		create opportunities for higher	generation. This in turn allows us to
sustainable business principles.		returns	fund new growth projects.
We monitor key operational metrics	2.	Strategic acquisitions: when we	We seek to maintain a highly
across our plants every week,		can improve operations and have	efficient capital structure to support
checking how these measure up		a clear competitive advantage	our business, using a two-tier
against internal targets. We then		based on, for example,	financing structure:
undertake an analytical review,		complexity of process, geography	• Majority non-recourse project
seeking to improve performance by		or technology	level debt for power plants; and
learning from what has worked well	3.	Development of customized	• Attractive bond financing to
and what has not gone according to		projects: in partnership with	maximize financial flexibility
plan.		governments, utilities and	for the parent company.
Our deep expertise and experience		corporations in regions where
allow us to improve our operational		there is a need for a reliable
performance and create economic		supply of power but insufficient
value. This operational approach is		expertise or capital
applied to all plants, developments	4.	Platform expansion: leveraging
and acquisitions.		existing stakeholder
		relationships and replicating the
		same technology and structure.
		This approach tends to result in
		lower risk and high returns due
		to cost synergies.

Four sustainability principles and five company values underpin everything we do:

Our Sustainable Business Principles

Operate safely and	Grow well	Manage our	Enhance our
efficiently and		business	operating
minimize		responsibly	environment
environmental
impacts
By running our power	By growing well, we help	We are committed to	We share our expertise
plants efficiently, we	meet energy needs	maintaining the	and improve quality of
maximize electricity	through a cleaner energy	highest ethical and	life through long-term
output, minimize	model that reduces	legal standards	sustainable
environmental impacts,	climate impacts. We	wherever we operate.	improvement of the
and reduce costs. We	promote energy and	We seek to attract,	electricity sector, civil
seek to promote health,	economic security and	develop, and retain a	society, and local
safety, and well-being	increase energy access,	workforce that reflects	communities.
throughout the	creating economic wealth	the diversity of the
organization: safety is	for investors, our	communities in which
our number one	employees, and,	we operate.
priority.	indirectly, our
	communities.
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