Edisun Power Europe : Rapport annuel 2022

Edisun Power Europe Ltd.

Management Report 2022

22

In front Betty (23.4 MW)

In the back Mogadouro (49.0 Mw)

Installed capacity

107.1 MW

+28.0 % YoY

Solar power production

123 359 MWh

+2.6 % YoY

Revenue in Mio.

CHF 18.970

+10.5 % YoY

Net profit in Mio.

CHF 10.225

+126.8 % YoY

Dividend

CHF 1.60 1)

+45.5% (last year CHF 1.10)

1) Proposal of the Board of Directors to the General Meeting of April 21, 2023

Report Board of Directors

Growth strategy continues to gain momentum

Dear Investor

Edisun Power is successfully moving forward with the growth strategy initiated in recent years. The year 2022 was marked by a potential energy shortage, the discussion of emergency concepts and further precautions to help renewable energies make a breakthrough.

It is therefore all the more gratifying that we were able to increase our solar capacity by a further 28.0% to a total of 107.1 MW in this difficult year. Our latest solar plant «Betty» in Portugal with 23.4 MW was successfully connected in November 2022. The strategy announced last spring to build between 300 and 350 MW of new solar plants and to provide Edisun with the necessary financial resources, among others through the sale of acquired and developed project rights, is being implemented. In addition, Edisun was able to issue a new bond of around CHF 35 million, which was subscribed to by more than 1'300 bondhold-ers. This is the best proof of the great willingness of you, our investors, to invest in a renewable, sustainable future. We would like to express our sincere thanks for this. Thanks to the selective sale of project rights, the Board of Directors sees sufficient financial leeway to further advance the growth strategy.

For the 2022 financial year we present a new record result. The Board of Directors wants you to share more in this success and will propose to the Annual General Meeting on 21 April 2023 an increased dividend of CHF 1.60 per share (previous years CHF 1.10 per share) to be approved.

We thank you for the trust you have placed in us.

Edisun Power Europe Ltd.

Board of Directors

Report by the Board of Directors

"Edisun Power is doing its part to reduce the risk of an electricity shortage in Europe and to make its contribution to reducing CO2 emissions."

Horst H. Mahmoudi, Executive Chairman of the Board of Directors

Market development and implications on Edisun Power

Green push more needed than ever!

2022 marked the most dramatic year for Europe's en-ergy market in at least a generation. The conflict in Ukraine brought the importance of affordable, reliable and secure energy supply to frontpages. A green sys-tem is now widely considered to be the most promising way to build a truly resilient energy system. Add the ur-gency mandated by the crisis, and the result is a further strengthening of the outlook for the renewable energy sector in Europe.

Edisun Power Europe AG is doing its part to fight the energy crisis and drive the green transformation with its expanding fleet of solar installations and rising electricity generation. The company is well positioned to play a growing role in the European energy transition and benefit from the strong market fundamentals and its dynamic momentum.

Importance of clean energy accelerates further

The market and policy changes in 2022 translate into historically high power prices, more demand for renew-ables, faster deployment, and possibly more subsidies for solar and related sectors such as green hydrogen compared to the outlook at the beginning of the year. While rising interest rates are weighing on financing costs, the strong energy market fundamentals keep the sector highly attractive.

The following developments in 2022 shaped the market outlook for Edisun Power:

• 1) Energy markets shocked by Russian invasion and natural gas price surge

• 2) Strong policy push for green energy in Europe and the US

• 3) Green Hydrogen growing in importance

1. Energy markets shocked by Russian invasion and natural gas price surge

As a result of the Russian invasion of Ukraine in early 2022, long-standing supply chains of natural gas into Europe were disrupted, leading to gas shortages and ultimately drastic price increases for consumers in all European markets.

These developments eventually sent shock waves into energy markets beyond natural gas, with soaring im-plications on prices. Wholesale electricity prices spiked from their already elevated levels in 2021 to previously unthinkably high rates. Further buoyed by the unexpect-ed outages in the French nuclear fleet, monthly average prices peaked at €442/MWh in Germany, €525/MWh in Italy and €303/MWh in Spain (Figure 1).

Figure 1: Avg. monthly wholesale electricity prices in selected EU countries

EUR/MWh