Magnora (MGN) Investor Presentation summary

Business model and strategy

• Operates as an asset-light, profitable renewable energy developer, focusing on greenfield origination and strict capital discipline in high-growth markets.

• Develops projects to the Ready-to-Build phase, then de-risks and sells or farms down, optimizing ownership and targeting minimum 5x return potential.

• Maintains zero debt, low burn rate, and a solid cash position, with near-term cash flow from project sales, legacy business, and dividends.

• Portfolio reached 9.4 GW net in Q2 2024, with increased emphasis on maturing assets and a target of 11 GW by 2025.

• Diversifies across technologies (solar PV, wind, storage) and geographies, with a multi-platform, multi-country approach supporting organic cash flow.

Financial performance

• Q2 2024 EBITDA was NOK 30.8m, a turnaround from negative NOK 11.3m in Q1, driven by milestone payments and gains from associated companies.

• Operating profit reached NOK 68.7m in Q2, with a total result of NOK 374.2m, including a gain from the distribution of Hermana ASA.

• Ending Q2 2024, cash and available credit facilities stood at NOK 461.3m, with a cash balance of NOK 311.3m.

• Net cash from investing activities in Q2 was NOK 27.6m, mainly from proceeds on previous divestments.

• Total returned capital since 2018 exceeds NOK 1 billion, with regular and extraordinary dividends, share buybacks, and capital deployment in new markets.

Key transactions and partnerships

• Sale of Helios to Vinci completed in July 2024, with NOK 330m upfront (16x return) and potential earnout up to NOK 3bn.

• Sale of Evolar to First Solar yielded NOK 310m plus NOK 60m earnout (7x return), with USD 18.3m remaining.

• Multiple international platforms and repeat customers, including Globeleq, Commerz Real, Hafslund, Nordic Solar, Red Rocket, and Vinci.

• Strategic expansion in South Africa, with 350 MW sold in 12 months and sales tripling investments to date.

• New greenfield initiatives underway in Italy and Germany, with plans to add more markets and retain full control over new ventures.