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Eurowind Energy – Annual Report 2023/24 EWE Ownership EWE Asset Management EWE Development pipeline EWE Office Contents 6 Letter from the CEO 10 Financial highlights 12 Key figures and ratios 13 Outlook 16 Global Trends 20 Strategy 22 Power-to-X 26 Our business model 28 Business highlights 29 Key themes for the year 33 Operational activities 36 Asset Management 38 Projects in development and construction 40 Financial performance 42 Environmental, Social and Governance 46 Environmental 52 Social 58 Governance 64 Risk management 70 Significant events after the end of the financial year 71 Statement by the Board of Directors and Board of Executives 72 Independent auditor's report 74 Financial statements
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Eurowind Energy – Annual Report 2023/24 Welcome The financial year 2023/24 was very much a ”back to normal year” compared to the previous year, which included the stormy months of the energy crisis in the summer and autumn of 2022. For Eurowind Energy 2023/24 was also characterised by significant growth and accelerated investments in order to implement our strategy of becoming a Power Major by 2030. We focused on doing what we do best, namely making renewable energy happen. We had a record high influx of new projects, got more projects than ever to the ready- to-build-stage, had record high construction activity and reached new milestones in Asset Management. In other words: We were very busy in 2023/24. We are still aiming for Power Major status by 2030. In many ways, many companies could be slightly jealous of our situation. We have more opportunities than we can actually deliver on. That means our growth is very much in our own hands. If we can secure enough financing, while recruiting and integrating more great colleagues we can go all the way to Power Major in a handful of years. The financial performance for the year has nearly returned to the levels seen before the turmoil of 2022. During the previous period, owning a minority share of Norlys Energy Trading yielded exceptional rewards, though much of the associated costs are only now being reflected in this year’s results. To accurately assess Norlys Energy Trading, it is beneficial to consider its performance over a three-year span, which still demonstrates a highly profitable trading operation. The earnings were also impacted by lower power prices in most markets, at the same time as the interest rates increased continuously throughout the period. As a long-standing guideline at Eurowind Energy, we avoid combining excess open elements in our Capex budgets with variable interest rates on projects where potential earnings are fixed. This approach allowed us to sustain high investment levels in the period, but it has put a strain on some proposed business cases. This led to a gross profit of 121 million EUR for the year, a notable decrease from 195 million EUR in 2022/23. Profit before tax reached 16 million EUR, compared to 315 million EUR the previous year. It's important to highlight that this was achieved without the sale of any assets. We grew the project development pipeline from 34 to 54 GW, while adhering to our long-standing principle of aiming for high-quality projects. The importance of that principle could also be seen in another big achievement this year, namely getting building permits for 29 projects “ For Eurowind Energy 2023/24 was also characterised by significant growth and accelerated investments. 7
