CEO end of year letter

Dear Shareholders and stakeholders,

2024 has been an exceptional year for SAE, with a number of key milestones being achieved, not least, that we have now been listed on AIM for a decade. I want to thank everyone who has been with us on this journey for their continued support.

This year we celebrated 10 years on AIM, as the team and I reflected with a huge amount of pride on this milestone, it’s clear to us how much the business has evolved in that time:

• We have delivered a significant reduction in our cost base and re-profiled our debt.
• We have streamlined and focused our business to deliver profitable projects.
• We have successfully leveraged our teams’ extensive experience and expertise in building and operating power plants at MeyGen and Uskmouth and applied this to our current pipeline of projects. Establishing us as a major independent power producer, in battery storage and tidal stream generation.

In June this year, we launched our new strategy, “Building a Sustainable Future to 2035”. Our new strategy is to deliver a very significant pipeline of projects that will achieve our goal of being a leading sustainable project developer, owner and operator, ensuring long-term value for our shareholders. Our strategy sees us working in close harmony with the Government’s ‘Clean Power 2030’ agenda.

We are extremely passionate about what we do, we have broken every record in tidal stream generation, and we have breathed new life into the amazing and strategically important Uskmouth power station site. Our longevity has given us experience and a dedicated team relentlessly focused on our continued success.

At Uskmouth, it is exciting to see so much activity and progress being made. In August we took full ownership of our first battery project known as AW1, this is truly transformational for SAE. This is a 240MWh project. When operational, which is expected to be in late 2026, it will generate recurring revenues of £12m per annum and EBITDA of £9m per annum. At the end of this year, we hit a key milestone when the first batteries for the project we sold to Uskmouth Energy Storage Limited arrived on site via our railway line. I can’t stress enough how vital this project's success has been for SAE in securing our future and unlocking our success. We now have all the building blocks in place to continue the rapid development of three other major battery storage projects in our portfolio.

At MeyGen, it is now 10 years since we achieved financial close, and this year we hit full power and more (with the offshore generation peaking at just over 6MW). This has been achieved through significant teamwork and innovation in the turbines, utilising our extensive operational experience to optimise the way the variable pitch systems operate and retrofitting wet mate connections systems, which minimises the costs of turbine recoveries and deployments. With the project at full power, we are breaking record after record, generating over 90% of tidal stream energy around the world month in, month out, firmly establishing the MeyGen array as the world’s most significant tidal stream development. The timing is excellent as it demonstrates that the technology works, which is critical in unlocking the project's next phase. This has only been possible with the support of the Scottish Government, Scottish Enterprise and Crown Estates Scotland, to whom we’re incredibly grateful.

Our tenth year on AIM has been exceptional. SAE is in great shape, with the difficult decisions taken and implemented. SAE has a strong balance sheet, robust future cashflows and a pipeline of projects that will establish us as a leading battery storage owner-operator.

As I look to next year, we are focused on delivering our strategy and will continue to strengthen and grow our business for the benefit of our shareholders, our people and the planet.

I would like to thank all of you who have supported us on our journey and wish you a Happy Christmas and a healthy and prosperous 2025.

Yours sincerely,