Kea Holding I Aps

Management's review

Statement of policy for data ethics
Link to statement of policy for data ethics
URL:https://europeanenergy.com/ir-material/

Description of significant activities of entity

Business review
The main focus of the KEA Holding I Group is developing and constructing wind turbines and solar parks. Another focus of the Group is purchasing existing renewable energy parks and the financing of these for either disposal or operation.
The most significant part of the activities in the Group are related to the subsidiary European Energy A/S.

Description of any uncertainty connected with recognition or measurement

Recognition and measurement uncertainties
The recognition and measurement of items in the annual report is not associated with any uncertainty.

Description of any unusual circumstances affecting recognition or measurement

Unusual matters
The company's financial position at 31 December 2023 and the results of its operations for the financial year ended 31 December 2023 are not affected by any unusual matters.

Description of development in activities and financial affairs

Financial review
The company's income statement for the year ended 31 December 2023 shows a profit of TEUR 50.095, and the balance sheet at 31 December 2023 shows equity of TEUR 200.022.

Description of significant events occurring after end of reporting period

Significant events occurring after the end of the financial year
The subsidiary European Energy A/S signed an agreement with Mitsubishi HC Capital inc. to acquire 20% ownership in European Energy A/S.
Below is the European Energy A/S company announcement 2/2024 of 19 January 2024:
"Today, European Energy A/S (European Energy) has signed an investment agreement with Mitsubishi HC Capital Inc. (Mitsubishi HC Capital), a Japanese company listed on the Tokyo and Nagoya Stock Exchanges.
Pursuant to the investment agreement, Mitsubishi HC Capital will subscribe for around 72 million ordinary new shares and purchase, in aggregate, around 3 million ordinary shares from the three major shareholders in European Energy ultimately controlled by Knud Erik Andersen, Mikael D. Pedersen and Jens-Peter Zink. As a result, Mitsubishi HC Capital will at closing of the transaction hold 20% of the outstanding shares and voting rights in European Energy.
Through the transaction, European Energy will raise gross proceeds of approximately EUR 700 million. The capital raise will strengthen European Energy's balance sheet and will be used to contribute to the continued growth of European Energy.
As part of the transaction, Mitsubishi HC Capital will actively collaborate towards the value creation and strategic growth of European Energy, including through representation on the Board of Directors of European Energy.
Closing of the transaction was subject to fulfilment of certain customary closing conditions, including regulatory approvals and was finalised in H1 of 2024."
Apart from above, Management is not aware of any subsequent matters that could be of material importance to European Energy Group’s financial position.

Description of expected development

Expected development of the company, including specific prerequisites and uncertainties
For the 2024 financial year, management expect growth in the financial results compared to 2023, due to continued expansion of the subsidiary European Energy's activity level.
In European Energy A/S, the expectation for 2024 is EBITDA of EUR 230m, equivalent to growth of approximately 30% over realised EBITDA in 2023. We expect that the result will fluctuate over the quarters as usual, depending upon the timing of larger divestment of energy parks.
Profit before tax is also expected to continue to grow, but at a lower rate than EBITDA. We assess that the risk factors constitute a less risky environment compared to last year and could therefore only impact realised EBITDA by a margin of +/- 10% compared to the outlook.
As a result of this, the expectation for KEA Holding I ApS is a profit before tax of EUR 70m-90m.