#1Abu Dhabi National Energy Company (TAQA) Investor Presentation POWERING A THRIVING FUTURE TAQA طامات#2Disclaimer These materials have been prepared by Abu Dhabi National Energy Company PJSC ("TAQA" or the "Company"). The information contained in this presentation may not have been reviewed or reported on by the Company's auditors. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. These materials have been prepared for information purposes only and do not form part of any prospectus, offering memorandum or offering circular or an offer to sell any securities and are not intended to provide the basis for any credit or any third party evaluation of any securities or any offering of them and should not be considered as a recommendation that any investor should subscribe for or purchase any securities. The information contained herein supersedes any previous such information delivered to you and will be superseded by any such information subsequently delivered. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company is under no obligation to update or keep current the information contained herein. No person shall have any right of action (except in case of fraud) against the Company or any other person in relation to the accuracy or completeness of the information contained herein. This presentation may contain, or may be deemed to contain, "forward-looking statements" regarding future events or the future financial performance of the Company. These forward-looking statements include all matters that are not historical facts. The inclusion of such forward-looking information shall not be regarded as a representation by the Company or any other person that the objectives or plans of the Company will be achieved. The Company undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise. TAQA publishes its financial statements in AED rounded to the nearest million. This presentation contains conversions of certain AED amounts into U.S. dollars solely for the convenience of the reader. These conversions should not be construed as representations that the AED amounts actually represent such U.S. dollar amounts or could actually be converted into U.S. dollars at the rate indicated. The UAE dirham has been pegged to the U.S. dollar at a fixed exchange rate of AED 3.6725 = U.S.$1.00 since 22 November 1980 and, unless otherwise indicated, U.S. dollar amounts in this presentation have been converted from AED at this exchange rate. Please note that rounding differences may appear throughout the presentation. 2 TQ#3Table of contents 1 A leading integrated utility, underpinned by strong, recurring cash flows 4 2 Recent strategic developments 3 Integrating ESG into how we do business 4 Maintaining strong financial performance LO Investment thesis 6 Appendix 10 13 18 21 23 3 T\Q\#4A leading integrated utility, underpinned by strong, recurring cash flows POWERING A THRIVING FUTURE TAQ#5A leading integrated utility at the heart of UAE's energy ambitions 1 Building a global business upon 2 solid foundations in UAE | I Exclusive Right of I I 1st refusal I 117 Operations spread across three business lines 3 H1 2023 REVENUE SHARE mboe/d production Transmission for For a minimum of Abu Dhabi and I I Northern Emirates I Distribution for Abu Dhabi I I EWEC generation! 22 Countries Global footprint through power generation and 40% stake in projects in the O&G assets. I UAE 37.4 GW1 gross power generation capacity I 18% T&D 24% ■ Generation O&G 58% Strong financial performance & predictable cash flow generation $ $7.3bn ~110,000 km water & 5% YoY electricity networks 1,060 MIGD gross water desalination capacity H1 2023 Revenue I $2.9bn 7% YoY H1 2023 EBITDA 41% Average Adj. EBITDA margin 2020-2022 € 61% FCF-to-EBITDA ratio H1 2023 Robust borrowing profile with good liquidity levels 4 Aa3 5 Transparent dividend policy Defined dividends from T&D and Generation (fils/share) MOODY'S 12% Liquidity as a % of 2.6x Net debt / LTM AA- Fitch Ratings 2023P 2024F 2025F 3.25 3.50 3.75 EBITDA (Jun 23) total assets (Jun 23) Maintaining standalone investment grade rating Variable payout over 2023-2025 from O&G business Discretionary percentage of net income Fixed dividends to be paid quarterly Variable dividend at year end 6 ESG embedded in Group strategy with a path to net-zero by 2050 2022 highlights 8% YoY reduction in I 0 16% YoY reduction in Scope 1 & 2 GHG ¦ intensity based on ¦ emissions | revenue 27% Female board members 16% women in management 1. Based on operational and under construction capacities. Includes Masdar generation capacity. Excludes 1GW captive capacity in Oman 5 TAQA#6. TAQA a key driver of the energy transition in Abu Dhabi A deliberate shift towards cleaner energy sources Planned power generation structure in Abu Dhabi Installed generation capacity by type across EWEC network Nuclear • Base load for Abu • Dhabi's power generation TAQA provides Transmission & Distribution connectivity TAQA does not own the Barakah Nuclear Energy plant 90% Solar Gas 80% 80.1% 68.9% M 70% 60% 50% Intermittent power supply source • TAQA has a key stake 40% in all Gas plants 30% • • TAQA has a key stake in all PV plants 20% 14.7% 15.2% 15.8% 10% 5.3% 0% Nuclear Solar Gas 2022 2030F Source: EWEC 6 TAQA#7Well-articulated strategy to become a low carbon power and water champion focused on optimization and growth MISSION VISION PURPOSE STRATEGIC PILLARS T To be a low carbon power and water champion To provide the clean power and water that governments, businesses and consumers need for a sustainable and successful life Powering a thriving future by efficiently providing sustainable and reliable energy and water to unleash the unlimited potential of people and places Optimization П000 Growth KEY THEMES Create an integrated and efficient utility company Partner with the government to establish optimal regulatory system Enhance security of supply to maintain demand growth in UAE and internationally ENABLERS Capability Building Develop people capabilities for sustainable growth Financial discipline Ensure financial stewardship ESG Expand product portfolio Become the UAE's ESG champion sustainably delivering on our corporate strategy and objectives Become a sustainable leader and decarbonization partner in the UAE Innovation & Digitization Enable optimization of existing business and ability to innovate for growth in new business models • • • Key 2030 targets Increase gross power capacity to 30 GW in the UAE (currently 20.1GW¹) and 20 GW internationally (currently 4.1GW²) by 2030 Renewable energy portfolio comprise >30% of power generation to in Reverse osmosis technologies to make up 2/3 of desalination capacity Invest AED 40bn (~$11bn) Transmission & Distribution by 2030, to maintain and grow RAB in the UAE Sustaining O&G production capacity across Canada & Iraq, while decommissioning certain assets in the North Sea Build depth into our capabilities through project development, delivery and operatorship in Generation, which will facilitate value preservation and creation. Commitment to maintain standalone investment grade rating 7 TAQɅ#8Breakdown of TAQA's power generation capacity Share of clean energy increasing in portfolio Gross capacity (GW) Net capacity (GW) 24.2 5.0 14.8 7.3 19.2 1.6 7.5 TAQA Masdar TQ Masdar Elimination (joint project) 37.4 10.7 14.3 1.9 26.7 12.4 2.8 Technology mix (gross capacity) Wind 11.5% 17.1 3.6 13.5 TAQA + Masdar TAQA Masdar (TAQA Share) TAQA + Masdar TQ Masdar TAQɅA Masdar TQ Masdar I ☐ I I Current Portfolio (Operating + U/C) ■Operational Under construction Current Portfolio (Operating + U/C) ■Operational Under construction Solar 25.5% Geothermal Other 5.0% 0.6% Coal 6.2% Clean energy at -43% of portfolio Technology mix (net capacity) Geothermal Other Wind 0.7% 0.3% Solar 17.7% 5.3% Coal 12.0% Clean energy at -24% of portfolio Thermal 51.1% Thermal 64.0% 8 TQ#9Cash flow stability entrenched in TAQA's business model T&D Building blocks of Maximum Allowed Revenue (MAR): + BST + Opex Rol on Regulated Asset Base (RAB) + Depreciation Incentive structure Real WACC increased from 4.6% to 4.9% for Regulatory Control 2 (RC2) period (2023-2026) Annual nominal Rol on RAB: WACC + previous year's CPI H1 2023 Revenue breakdown GENERATION Entire domestic and international generation fleet operates under long-term take or pay contracts with highly credible off-takers Compensation composed of Capacity Payment and Variable Payment H1 2023 EBITDA breakdown Capacity Payment is dependent on availability (rather than off-take) and includes recovery of capital and return on capital In addition to compensation for variable operating costs, Variable Payment includes recovery of fuel cost on a pass-through basis in select markets. 24% 18% DO €9 58% Contracted + regulated: c.82% of Revenue Regulated Contracted Other 24% 41% 36% Contracted + regulated: c.78% of Adj. EBITDA Contracted: Local and international power generation assets Regulated: Transmission & Distribution companies (licensed activities) • Other: Oil & Gas, unregulated transmission activities, merchant generation assets 9 TAQA#10Гототото TOTO Recent strategic developments TAQA#11OPEX* • Regulatory Control 2 (RC2) comes into force for 2023-2026 Favorable changes for TAQA relative to RC1 RC2 • • Approved and applicable from 1 Jan 2023 to 31 Dec 2026 Framework applicable to TRANSCO, AADC, & ADDC Average annual OPEX allowance of c. AED 3.5 billion/year for all three companies combined A healthy increase over RC1 allowance *: Permitted revenues, opex and capex allowances, all exclude the impact of inflation CAPEX* Real WACC Revised higher to 4.9%, compared to 4.6% for RC1 AED 47.5 billion over 2023- 2026 in aggregate for all three companies • Exclusive of passthrough costs Corporate Tax Permitted revenues* • • Aggregate CAPEX allowance of c. AED 14.5 billion over 2023-2026 for all three companies combined RC2 final decision also allows unapproved schemes to be included in RAB subject to ex- post review by the DoE UAE corporate income tax to be compensated via adjustment to OPEX allowance on an ex-post basis 11 TAQA hayv#12Acquisition of Sustainable Water Solutions Holding Co. (SWS) TAQA'S RAB to increase by ~20% upon completion Highly accretive transaction demonstrates management's focus on value creation in any M&A transaction Entry into wastewater networks and treatment business through planned AED 1.7 billion acquisition of Sustainable Water Solutions Holding Company (SWS) Definitive agreement signed. Working towards completion of transaction 50% consideration to be paid upon completion and 50% one year after completion. An additional payment will also be made in 2024 linked to net profit generated during 2023 Acquisition cements TAQA's position as Abu Dhabi's fully integrated utilities company. Network of sewer pipelines extending to over 12,000 km Sewage treatment capacity of approximately 1.3 million cubic meters per day Addition of wastewater collection, treatment, and reuse capabilities in Abu Dhabi to further strengthen TAQA's ability to support UAE's net zero ambitions • AED 16bn addition to TAQA's existing RAB of AED 77.5bn (~20% increase) Return on new assets to be regulated by RC2 Lי\סיו 12#13OTOTOTO QTQ OTOTOTO Integrating ESG into how we do business TAQA#14ESG strategy: Setting milestones enroute to 2050 net-zero target Strategic pillars and ambitions GREENHOUSE GAS EMISSIONS CO₂ WATER AND EFFLUENTS OCCUPATIONAL HEALTH AND SAFETY DIVERSITY AND EQUAL OPPORTUNITY LOCAL COMMUNITY ENGAGEMENT CORPORATE GOVERNANCE G YYY Achieve net-zero Scope 1 & 2 by 2050 Reduce Scope 1 & 2 emissions across the Group by 25% and in UAE by 33% by 2030 (Baseline: 2019) Reduce energy consumption for desalination (RO to account for 2/3 capacity by 2030) Reduce losses in water distribution by 25% by 2030 (Baseline: 2021) Increase transparency of reporting Maintain focus on prevention of incidents through a shift in safety culture and approach Four focus areas for diversity: gender, age, nationality and people of determination 30% women in management by 2030 CSR activities to focus on two themes covering 8 SDGS: "Equality in Education" and "Environment" Continue adoption of governance best practices beyond local regulations and requirements Dedicated ESG committees at the Board and Executive Management levels ESG-impact a key consideration for new projects ESG-team embedded within TAQA's Corporate Strategy team Issuing annual sustainability reports since 2020 14 TЛQɅ#15GHG emissions: on-track for 2030 emission reduction targets 2022: 8% Scope 1 & 2 emission reduction; 16% reduction in intensity based on revenue Scope 1 and 2 GHG Emissions based on Financial Control Approach (mtCO2e) Emission Factor - Revenue (tCO2e/mUS$) 64.76 62.93 62.62 0.05 0.09 0.08 57.81* 2.23 2.28 2.16 0.06 2.19 17.97 16.38 17.18 16.60 44.52 44.19 43.19 38.96 5,641 5,433 5,073 4,246 2019 2020 2019 2021 2020 2022 ■ UAE Generation ■Int'l Generation Oil & Gas ■ T&D Obtained third party limited assurance for scope1, scope2 and total scope 1 and 2 GHG emissions ■ Emission 2021 2022 15 TAQA#168 Improvements made across several ESG metrics in 2022 Health & Safety -24% No. of spills -87% Vol. of spills Social ing -4% Recordable Injury Rate Zero fatalities People +139% Community Spend +64% Training Hours Diversity & Equal Opportunity ✓ Women's and Youth Councils established ✓ Women in senior mgmt. 16% ✓ Youth 33% in the workforce ✓ 70 nationalities represented Board Governance Independent board members 82% (67% in 2022) Female board members 27% (0% in 2022) Sustainability Committee established ESG Operating Model Mgmt. Committee established ✓ Sustainability and Climate Change function under Strategy ESG Integration ✓ ESG considerations in capital allocation framework ✓ ESG risks part of Enterprise Risk Management framework ✓ Ethics and Compliance training coverage 100% All reduction numbers are in comparison to 2021 unless otherwise stated. 16 T\Q\#17Maintaining strong financial performance OTOTOTO TOTO TAQA#18• H1 2023 performance Underlying profitability impacted by O&G segment; recognition of ADNOC Gas stake boosts net income • One-off gain on recognition of ADNOC Gas investment biggest driver of bottom-line growth Free cash flow impacted by O&G segment performance and adjustments to related party balances from previous years Revenue (AEDm) +5.4% 26,804 25,426 H1'22 11,326 Adj. EBITDA (AEDM) -7.1% 10,517 1 -5.3% pts 1 44.5% 39.2% H1'23 H1'22 H1'23 Net income (TAQA share, AEDm) Free Cash Flow (AEDm) -22.9% +215.1% 8,277 13,495 4,283 6,385 16.8%1 +33.5% pts 50.3%¹ H1'22 H1'23 H1'22 1. Margin as a % of revenue H1'23 18 TAQA#19Liquidity and debt profile Jun 2023 Successful $1.5 billion bond issuance in Q2 2023, including TAQA's first Green bond Continued significant headroom for additional borrowing to fund future growth while maintaining standalone investment grade rating Total debt stood at AED 61.7 billion in Q2 2023 (Q2 2022: AED 63.1 billion) Fixed rate debt (% total) Average debt maturity (years) 98% 98% 10.3 10.5 Dec-22 Jun-23 Average interest rate Dec-22 Jun-23 Strong liquidity levels Liquidity (AEDbn) ......% of total assets 13.0% 12.3% Dec-22 Mar-23 Continued reduction in net leverage ! Delivering on our quarterly dividend policy I Net debt/EBITDA (LTM) Dividends¹ (AED billion) 3.1 + 2.2 (paid) 3.4 + 2.4 (paid) 3.6+variable (TBD) DPS (fils/share) TBD 5.10 4.75 4.59% 4.65% 2.5x 1.3 1.20 2.6x 1.10 0.55 0.60 0.65 3.25 0.55 0.60 0.65 0.55 0.60 0.65 FY 2022 Q2'23 FY 2022 Q2'23 2021 2022 2023 1. Proposed dividend payouts of indicated financial years 19 TQ#20Investment thesis TOTOTOTO TOTOTOTO TOTO TAQA#21Key strengths of TAQA Aa3 by Moody's (stable) AA- by Fitch (stable) TAQ 1 2 4 3 One of the Largest Listed Integrated Utility Companies in EMEA (Assets of USD 52.5 billion as of June 2023) Vertically Integrated Across the Utilities Value Chain (Exclusive rights to T&D in Abu Dhabi and a minimum of 40% in all EWEC generation projects until 2030) Leader in the utilities sector Highly Predictable and Secure Cash Flow Profile (78% of Adj. EBITDA from regulated and contracted assets) Long-standing and Transparent Regulatory Framework (Governing T&D business in Abu Dhabi) 899 Secure cash flows 5 Strong Abu Dhabi Ties and Fully Aligned with the 2030 Economic Vision (Majority owned by Abu Dhabi government) Aligned with the UAE Net Zero by 2050 strategic initiative 6 National champion (TAQA aims to help fulfil the UAE strategy of increasing the share of clean generation to 50 per cent. by 2050) *MAR: Maximum Allowed Revenue 21 TAQA#22Appendix POWERING A THRIVING FUTURE TAQ#23OTOTOTO Appendix A: A closer look at the business lines TOTO TAQA#24A closer look at the Business Lines TAQA Generation (excluding Masdar) National champion with a growing global footprint I 21 power & water assets across the globe • 14 power & water assets in the UAE with 20.1 GW generation capacity and 1,060 MIGD water capacity 7 assets outside UAE (4.0 GW) across 6 countries: Morocco, Ghana, KSA, USA, Oman and India Spearheading TAQA's green initiatives Dafrah PV2 (2GW capacity) is the world's single largest solar PV farm Taweelah RO (200 MIGD) is the world's largest RO desalination plant Fujairah 3 (2.4 GW capacity) is designed to be the most efficient CCGT plant on Abu Dhabi network 201 Over 12 years weighted residual life of P(W)PAs, excluding projects under construction The growth projects under development will have 20 to 30-year off-take agreements once completed Exclusive rights to participate in all future power and water generation projects tendered in Abu Dhabi over the next ten years with minimum 40% stake (renewables to be executed through Masdar) Strategic initiatives: • • Expand portfolio in domestic and international markets Strategically positioning in renewables and Green Hydrogen sphere through Masdar Value creation through optimization of operational portfolio via technical and financial initiatives 19.2 GW Total operating gross installed power capacity 5.0 GW New power capacity under construction 860 MIGD Total operating water capacity 200 MIGD New reverse osmosis water capacity under construction Revenue and EBITDA (AEDM) Share of revenue and EBITDA 6,502 6,450 3,787 3,815 EBITDA Revenues 24% 26% . Develop O&M and lead developer capabilities Revenues EBITDA H1 2022 H1 2023 36% 33% 24 TAQA#25Masdar: Aiming to be a global clean energy leader Joint Venture between TAQA, ADNOC & Mubadala A strategic partnership to launch a global clean energy powerhouse 200 • Abu Dhabi's flagship clean energy company I I Growing on a global scale, covering renewable power and other enabling clean energy technologies I Masdar is the Abu Dhabi's execution arm for domestic and international renewable energy ambitions Building a global footprint . Presence in 17 countries 1. Gross Operational and Under Construction capacity I I I I I I I I I I Masdar shareholding I Masdar Green Hydrogen shareholding ADNOC 24% Mubadala 33% 0 TAQA 43% ADNOC 43% O Masdar's technology mix TAQA 24% Mubadala 33% Geothermal 13% Other 2% I Wind 27% 14.8GW1 Masdar Solar 58% 25 TAQA#26A closer look at the Business Lines 費 臯 Transmission & Distribution (T&D) Key utility infrastructure provider in the UAE ◆ TRANSCO شركة أبوظبي للنقل و التحكم Abu Dhabi Transmission & Despatch Company Major player in the UAE power and water segment Power and water transmission across the whole of Abu Dhabi and to FEWA and SEWA, serving six of the seven Emirates in the UAE Preparing the ground for energy transition Investments in energy transition readiness and associated infrastructure, incl. battery storage, EV charging and demand side management Emphasis on digitalization to achieve operational improvements and smart grid readiness Distribution managed through two Discos: Abu Dhabi Distribution Company (ADDC) Al Ain Distribution Company (AADC) TransCo Network Length, H1 2023 Discos Network Length, 2022 Water 24% ADDC Water 13% AADC Water 5% 14,393 km Power 76% 97,718 ADDC Power 51% km AADC Power 31% Well defined regulatory framework in place for T&D TAQA receives agreed return on investment across T&D assets Revenue and Adj. EBITDA (AEDM) Share of revenue and Adj. EBITDA Major spending plans and enhancing capabilities : • Targeted capital expenditure of AED 40 billion (~USD 11.0 billion) scheduled for the T&D business by 2030 Focus on expansion and interconnection of power, water and recycled water infrastructure in Abu Dhabi • Optimization and digitalization across the value chain 1. Through SEWA and Etihad WE (formerly FEWA) 15,569 13,236 Revenues 3,954 4,339 EBITDA Revenues EBITDA H1 2022 H1 2023 41% 35% 52% 58% TAQɅ 26#27A closer look at the Business Lines Abu Dhabi power and water sector flows. Fuel: Abu Dhabi Department of Energy (formerly the Regulation and Supervision Bureau, RSB) ADNOC Firm gas supply contracts DEL Emirates Water & Electricity Company (EWEC) MAR I Balance (MARI I less tariffs) Purchase all capacity and P&W, under PPAs Generation I(W)(P)Ps: 費 Transmission: Tariffs BST Distribution: Material flow Payment flow Abu Dhabi $ Department of Finance Consumer: Commercial Household I(W)PPS ADDC P&W TUOS P&W Industry TRANSCO P&W Government Barakah (nuclear) AADC Note: (W)(P)P = Independent (Water) (and) (Power) Producer; P&W = power and water; TRANSCO = Abu Dhabi Transmission & Despatch Co.; ADDC = Abu Dhabi Distribution Co; AADC = Al Ain Distribution Co; ADNOC = Abu Dhabi National Oil Co.; DEL = Dolphin Energy Ltd.; BST = Bulk Supply Tariff; TUOS = Transmission Use of System; MAR = Maximum Allowed Revenue, as defined by the First Regulatory Controls 1 (RC1) framework; (P)(W)PA = (Power) (and) (Water) Purchase Agreement Agriculture 27 TAQɅ#28A closer look at the Business Lines T Canada Oil & Gas Assets spread across 3 continents UK • • • • • • Operating asset acreage with large resource potential A top onshore oil and gas producer in Western Canada Strategic Priorities: deliver safe and reliable operations whilst maximizing value and achieving operational excellence Net production in H1 2023: 72.4 mboe/day Late-life offshore operations Strategic Priorities: safe and reliable operations with execution of decommissioning plans Net production in H1 2023: 38.0 mboe/day Reducing carbon footprint Proactive approach to emissions management and reduction across all OpCos, working closely with stakeholders to execute and deliver upon emission optimisation and projects including the gas utilisation project in Iraq Successful completion of the Acid Gas Injection project at Crossfield in Canada towards end 2021/beginning 2022 led to 54,500 T/yr reduction in CO2 emissions Net production, H1 2023 Iraq 3% Production mix (mboe/day), H1 2023 Netherlands • • Two strategic gas storage facilities: Gas Storage Bergermeer (GSB) and Piek Gas Installation (PGI) Strategic Priorities: maintain high asset availability, fulfill the customer expectations Net production in H1 2023: 3.1 mboe/day Europe 35% Iraq . Operate the Atrush Block in Kurdistan • Drill to fill central processing facility, with appraisal opportunities • Strategic Priorities: sustain production by executing drilling program and improve cost and environmental performance through execution of a gas utilization project Entitlement production in H1 2023: 3.4 mboe/day (Gross production: 15.1 mboe/day) 117.0 mboe/d Gas, North America 53% 62% Revenue and EBITDA (AEDm) 5,688 4,785 3,743 2,532 EBITDA Revenues Oil, .37% NGL. 9% Share of rev and EBITDA Revenues EBITDA H1 2022 H1 2023 18% 24% 33% 22% TAQɅ 28#29TAQA **LOLD