NHOA : Financial Statement Eng

2021 FINANCIAL REPORT

AS AT 31 DECEMBER 2021

Index of Contents

• 1 MANAGEMENT REPORT........................................................................................................................... 4

• 1.1 Definitions............................................................................................................................................... 4

• 1.2 NHOA S.A., the parent company ................................................................................................................ 9

• 1.3 Outlook ................................................................................................................................................... 9

• 1.4 Summary of the 2021 Group's Results ...................................................................................................... 12

• 1.5 Important events during the period ......................................................................................................... 16

• 1.6 Subsequent events .............................................................................................................................. 20

• 1.7 Main Risks and Uncertainties .................................................................................................................. 21

• 1.8 Transactions between Related Parties ...................................................................................................... 21

• 2 CONSOLIDATED FINANCIAL STATEMENTS ............................................................................................... 22

• 2.1 Consolidated Income Statement .............................................................................................................. 23

• 2.3 Consolidated Balance Sheet .................................................................................................................... 25

• 2.4 Consolidated Statement of Changes in Equity ........................................................................................... 26

• 2.5 Consolidated Statement of Cash Flows ..................................................................................................... 27

• 3 ACCOUNTING STANDARDS AND METHODS ............................................................................................. 28

• 3.1 Accounting Principles and method evolution ............................................................................................ 28

• 3.1.1 New methods ........................................................................................................................................ 28

• 3.1.2 Impacts of COVID-19 .............................................................................................................................. 29

• 3.2 Format of the financial statements .......................................................................................................... 30

• 3.3 Functional and presentation currency ...................................................................................................... 30

• 3.4 Use of estimates .................................................................................................................................... 30

• 3.5 Key Performance Indicators .................................................................................................................... 31

• 3.6 Segment information ............................................................................................................................. 31

• 3.7 Evolution of the consolidation area .......................................................................................................... 31

• 3.8 Key Performance Indicators .................................................................................................................... 34

• 4 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ......................................................................... 38

• 4.1 Revenues and Other Income ................................................................................................................... 38

• 4.2 Cost of Goods Sold ................................................................................................................................. 40

• 4.3 Personnel costs ...................................................................................................................................... 41

• 4.4 Other operating expenses ....................................................................................................................... 42

• 4.5 Other costs for R&D, Selling and industrial operations ............................................................................... 42

• 4.6 EBITDA (excluding Stock Option and Incentive Plans) (non-IFRS) ................................................................. 42

• 4.7 Amortization and depreciation ................................................................................................................ 43

• 4.8 Impairment and write up / down ............................................................................................................. 43

• 4.9 Non recurring expenses and Integration costs .......................................................................................... 44

• 4.10 Incentive Plans ...................................................................................................................................... 44

• 4.11 EBIT ...................................................................................................................................................... 46

• 4.12 Net Financial Income and expenses ......................................................................................................... 47

• 4.13 Income taxes ......................................................................................................................................... 47

• 4.14 Net income or loss ................................................................................................................................. 47

• 4.15 Property, plant and equipment ............................................................................................................... 48

• 4.16 Intangible Assets .................................................................................................................................... 49

• 4.17 Investments in entities accounted using the equity method ....................................................................... 52

• 4.18 Other non-current financial assets ........................................................................................................... 52

• 4.19 Trade receivables ................................................................................................................................... 53

• 4.20 Contract Assets ...................................................................................................................................... 53

• 4.21 Inventories ............................................................................................................................................ 54

• 4.22 Other current assets and other current financial assets ............................................................................. 54

• 4.23 Cash and cash equivalent ........................................................................................................................ 55

• 4.24 Net Equity ............................................................................................................................................. 55

• 4.25 Severance indemnity reserve and Employees' incentive plan ..................................................................... 56

• 4.26 Non-current deferred tax liabilities .......................................................................................................... 59

• 4.27 Trade payables ...................................................................................................................................... 59

• 4.28 Other Current and Non Current Liabilities ................................................................................................ 60

• 4.29 Financial liabilities .................................................................................................................................. 60

• 4.30 Net financial position ............................................................................................................................. 64

• 4.31 Related party disclosures ........................................................................................................................ 64

• 4.31.1 Intra-group Operations ............................................................................................................................................... 64

• 4.31.2 Significant agreements concluded with related parties ................................................................................................... 66

• 4.32 Loan commitments and guarantees and off-balance sheet commitments .................................................... 70

• 4.33 Subsequent events ................................................................................................................................. 70

• 4.34 Board compensation .............................................................................................................................. 72

• 4.35 Statutory's auditors compensation .......................................................................................................... 73

• 4.36 Risks associated with foreign exchange rate ............................................................................................. 74

• 5 Certification by the person responsible ................................................................................................... 75

1

MANAGEMENT REPORT

The following statements have been examined by the Board of Directors of 24th March 2022 and have been the object of review by the Statutory Auditors.

This is a free translation into English of the NHOA's 2021 Financial Report issued in the French language provided solely for the convenience of English-speaking readers. In case of discrepancy the French version prevails.

This report contains information relating to the markets in which NHOA is present. This information has been taken from external sources and/or from NHOA's internal analysis. Considering the very rapid changes that characterize the energy sector worldwide, it is possible that this information could turn out to be mistaken or outdated. Developments in the Group's activities could consequently differ from those described in this 2021 Financial Report and the declarations and information appearing in this report could prove to be erroneous.

The forward-looking statements contained in this 2021 Financial Report, notably in section 1.3 Outlook of the 2021 management report, are based on assumptions and estimates that could evolve or be impacted by risks, uncertainties (relating particularly to the economic, financial, competitive, regulatory and weather environment) or other factors that may cause the future results, performances and achievements of the Group to differ significantly from the objectives expressed and suggested. These factors may include changes in the economic and commercial environment, regulations, and the factors discussed in Chapter 3 of the 2021 Registration Document.

1.1

Definitions

In this Fully Year Financial Report unless specified otherwise the terms below have the following meanings:

• • A2EF or the Independent Expert means the financial services firm Associés en Evaluation et Expertise Financières represented by Mrs. Sonia Bonnet-Bernard appointed by the Board of Directors of the Company on 19 May 2021 as independent expert in charge of issuing a report on the financial terms of the simplified tender offer with TCC, in accordance with Article 261-1 I, 1° and 2° of the AMF General Regulation.

• • AC means Alternate Current.

• • AMF means the Autorité des marchés financiers as French financial markets authority.

• • Atlante means Atlante S.r.l. an Italian Limited Liability company with its registered office located at Piazzale Lodi, 3 - 20137 Milan, Italy, and registered with the Trade and Companies Registry of Milano under number MI - 2635708.

• • Atlante Project means the project presented by NHOA on 23 July 2021, aiming at developing a large fast charging network in Europe, and integrating storage systems and a technology that could stabilise national electrical grids.

• • Backlog means, as of a given date, the estimated revenues and other income attributable to (1) purchase orders received, contracts signed and projects awarded as of the date hereof, and (2) Project Development contracts associated with a Power Purchase Agreement, where the agreed value is a price per kWh of electricity and an amount of MW to be installed. When any contract or project has started its execution, the amount recognized as Backlog is computed as (A) the transaction price of

the relevant purchase orders, contracts or projects under (1) and (2) above, less (B) the amount of revenues allocated, as of the reference date, in accordance with IFRS 15 (representing the amount of transaction price allocated to the performance obligations carried out at the reference date).

• • BESS means Battery Energy Storage Systems.

• • BMS means Battery Management System.

• • Board of Directors means the Conseil d'Administration of the Company, in place and as composed as at the date of publication of this 2021 Universal Registration Document.

• • CEO means Chief Executive Officer.

• • CO2 means Carbon Dioxide.

• • Consolidated Financial Statements of the NHOA Group means the consolidated financial statements of the Company prepared in accordance with IFRS norms as adopted by the European Union on fiscal year 2020 and 2021.

• • Contracts Secured means projects awarded for which the signature of the full sets of the agreements has not been yet completed. Typically, when NHOA is awarded with a tender, typically being project financing, there are several steps to be completed (i.e. the EPC Agreement, the Notice to Proceed, permission to be signed). "Contracts Secured" are no longer part of the "Pipeline" but are not yet part of the "Backlog". They will do so only once terms of documentation and planning permissions are defined.

• • DC means Continuous Current.

• • Demand Response means an opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives. Demand Response programmes are being used by electricity system planners and operators as resource options for balancing supply and demand. Such programmes can lower the cost of electricity in wholesale markets, and in turn, lead to lower retail rates. Methods of engaging customers in Demand Response efforts include offering time-based rates such as time-of-use pricing, critical peak pricing, variable peak pricing, real time pricing, and critical peak rebates. It also includes direct load control programmes that give power companies the ability to cycle air conditioners and water heaters on and off during periods of peak demand, in exchange for a financial incentive and lower electricity bills.

• • easyWallbox means a special residential EV charging station developed and patented by NHOA.

• • EIB means the European Investment Bank.

• • Electric and Hybrid Vehicles means vehicles operating by battery and vehicles combining both electric vehicle transmission and an Internal Combustion Engine ("ICE").

• • EMS means Energy Management System.

• • ENGIE means ENGIE S.A., a société anonyme incorporated under the laws of France, registered with the Registre du Commerce et des Sociétés of Nanterre under number 542 107 651 and having its registered office located at 1 place Samuel de Champlain, 92400 Courbevoie, France.

• • ENGIE SPA means the sale and purchase agreement between the majority shareholders of NHOA S.A. and GDF International signed on 24 January 2018.

• • EPC means engineering, procurement and construction contract.