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Årsredovisning 2025
Directors’ Report - Corporate Governance Report
42 Orrön Energy – Annual and Sustainability Report 2025
When the Committee makes decisions, including
determining, reviewing and implementing the Policy, it
follows a process where:
• the Board sets and reviews the terms of reference of
the Committee;
• the Chair of the Committee approves the Committee’s
agenda;
• the Committee considers any reports, data and
presentations and debates any proposal. In its
considerations the Committee will give due regard to
the Company’s situation, the general and industry
specific remuneration environment, the remuneration
and terms of employment of the broader employee
population, feedback from different stakeholders,
relevant codes, regulations and guidelines published
from time to time;
• the Committee may request the advice and
assistance of management representatives, other
internal expertise and of external advisors. However, it
shall ensure that there is no conflict of interest
regarding other assignments that any such advisors
may have for the Company and Group management;
• the Committee ensures through a requirement to
notify and recuse oneself that no individual with a
conflict of interest will take part in a remuneration
decision that may compromise such a decision;
• once the Committee is satisfied that it has been
properly and sufficiently informed, it will make its
decisions and, where required, formulate proposals for
approval by the Board; and
• the Board will consider any items for approval or
proposals from the Committee and, following its own
discussions, make decisions, proposals for a General
Meeting of Shareholders and/or further requests for the
Committee to deliberate on.
Review and benchmarking
The Committee undertakes reviews of the Company’s
remuneration policies and practices considering the
total remuneration of each executive as well as the
individual components. Levels are set considering:
• the total remuneration opportunity;
• the external pay market;
• the scope and responsibilities of the position;
• the skills, experience and performance of the
individual;
• the Company’s performance, affordability of reward
and general market conditions; and
• levels and increases in remuneration, as well as other
terms of employment, for other positions within the
Company.
External benchmarks for total remuneration are acquired
when the Committee considers it necessary, consisting
of one or more sets of companies that compete with the
Company for talent, taking into consideration factors like
size, complexity, geography and business profile when
determining such peer groups.
Variable remuneration
The Company considers that variable remuneration
forms important parts of executives’ remuneration
packages, where associated performance targets reflect
the key drivers for pursuing the Company’s strategy, and
to achieve sustainable value creation and growth in
long-term shareholder value. The Committee ensures
that performance and design align with the strategic
direction and risk appetite of the Company before
incentives are approved by the Board.
There is no deferral of incentive payments, however, the
Board can recover annual bonuses paid in the unlikely
event of outcomes based on information which is
subsequently proven to have been manifestly misstated.
The Board can also in exceptional circumstances reduce
long-term incentive awards, including reducing them to
zero, should it consider the vesting outcome to
incorrectly reflect the true performance of the Company.
Benefits
Benefits provided shall be based on market terms and
shall facilitate the discharge of each executive’s duties.
The pension provision is the main benefit and follows the
local practice of the geography where the individual is
based. The pension benefits consist of a basic defined
contribution pension plan, where the employer provides
60 per cent and the employee 40 per cent of an annual
contribution of up to 18 per cent of the capped
pensionable salary and, at the Board’s discretion, a
supplemental defined contribution pension plan where
the employer provides 60 per cent and the employee 40
per cent of a contribution up to 14 per cent of the capped
pensionable salary.
Severance arrangements
Executives have rolling contracts where mutual notice
periods of up to twelve months apply between the
Company and the executive. In addition, severance
terms are incorporated into the employment contracts
for executives that give rise to compensation in the event
of termination of employment due to a change of control
of the Company. Such compensation, together with
applicable notice periods, shall not exceed 24 months’
base salary.
The Board is further authorised, in individual cases, to
approve severance arrangements, in addition to the
notice periods and the severance arrangements in
respect of a change of control of the Company, where
employment is terminated by the Company without
cause, or otherwise in circumstances at the discretion of
the Board. Such severance arrangements may provide
for the payment of up to 12 months’ base salary.
In all circumstances, severance payments in aggregate
(i.e. for notice periods and severance arrangements)
shall be limited to a maximum of 24 months’ base salary.
===== SIDA 43 =====
Directors’ Report - Corporate Governance Report
Orrön Energy – Annual and Sustainability Report 2025 43
Elements of remuneration for Group management
There are four key elements to the remuneration of Group management:
Description, purpose and link to
strategy and sustainability Process and governance
Relative share of
estimated/
maximum
total reward 1
a) Base salary • Fixed cash remuneration paid
monthly. Provides predictable
remuneration to aid attraction
and retention of key talent.
• The Committee reviews salaries
every year as part of the review of
total remuneration (see below for
a description of the
benchmarking process).
30%
b) Annual
variable
remuneration
• Annual bonus is paid for
performance over the financial
year.
• Each position has a set expected
bonus opportunity, which can be
up to the equivalent of 12 months’
base salary.
• Any value awarded by the Board
that is more than 12 months’ base
salary is paid for delivering
outstanding performance,
subject to a maximum cap of 18
months base salary.
• Signals and rewards the strategic
and operational results and
behaviours expected for the year
that contribute to the long-term,
sustainable value creation of the
Company.
• The annual review of total
remuneration also considers
annual bonus awards, outcomes,
target structure, weightings of
targets and specific target levels
of performance.
• Measurable financial and non-
financial performance
requirements are identified
according to position and
responsibilities and include
delivery against power
generation, investment, financial,
ESG and strategic targets.
• The Committee reviews the
design of annual variable
remuneration separately.
15%
c) Long-term
incentive plan
• Annual awards of equity-based
long-term incentives, approved
by the General Meeting, that align
the interests of participants with
those of shareholders.
• Awards may be granted with a
fair value of up to 300% of base
salary at award.
• Annual review of total
remuneration considers long-
term incentive awards and
outcomes.
• Participants are required to build
a significant personal
shareholding of up to 100% of
base salary (200% for the CEO)
over time by retaining 50% of
exercised shares, net of tax, until
the predetermined limit for the
personal shareholding has been
achieved.
• The Committee reviews the
design of long-term incentives
separately.
50%
d) Benefits • Predictable benefits to help
facilitate the discharge of each
executive’s duties, aiding the
attraction and retention of key
talent.
• The Committee reviews benefits
and contractual terms regularly
to ensure that the Company does
not fall behind the market.
• Benefits are set with reference to
external market practices,
internal practices, position and
relevant reference remuneration.
5%
Total 100%
1 Estimated reward shows the percentage of total reward where proportions are estimated assuming 50 per cent of maximum annual bonus and
the fair value of the long-term incentive without any further share price or dividend effect. The proportions for maximum remuneration are
based on full allocation of both annual variable remuneration and long-term incentive, without taking into account any further effects of
changes in the share price. Different actual awards and the variable nature of incentives means that the actual proportions for an individual
may be different.
===== SIDA 44 =====
Directors’ Report - Corporate Governance Report
44 Orrön Energy – Annual and Sustainability Report 2025
Internal control over financial reporting
The purpose of internal control over financial reporting is
to provide assurance with regards to the reliability of the
external financial reporting and to ensure that the
financial reporting is produced in accordance with
generally accepted accounting principles, applicable
legislation and with other requirements imposed on
listed companies.
The Board has overall responsibility for establishing and
monitoring an effective system for internal control. The
CEO is responsible for ensuring that both a process and
an adequate organisation are in place to safeguard
internal control and the quality of the internal and
external financial reporting. The purpose of this report is
to provide shareholders and other parties with an
understanding of how internal control is organised at
Orrön Energy.
Orrön Energy’s system for internal control over financial
reporting is based on the Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO). The five components
of this framework are control environment, risk
assessment, control activities, information and
communication and monitoring activities.
The Board has assessed the need for establishing an
internal audit function but concluded that the control
environment and the control activities carried out by the
Company, the Board and the Audit Committee are
sufficient to ensure adequate internal control over
financial reporting.
Control environment
The control environment is the foundation of Orrön
Energy’s system for internal control and is defined by the
Company’s policies and procedures, guidelines and
codes as well as its responsibility and authority structure.
In the area of control activities, Orrön Energy has
documented all critical, financial processes and controls
in the Group. The business culture established within the
Group is also fundamental to ensure highest level of
ethics, morals and integrity.
Risk assessment
Risks relating to financial reporting are evaluated and
monitored by the Board through the Audit Committee.
The Group’s risk assessment process is used as a means
to monitor that risks are managed and consists in
identifying and evaluating risks and also determining the
potential impact on the financial reporting. Regular
reviews on local level as well as on Group level are made
to assess any changes made in the Group that may
affect internal control.
Control activities
Control activities range from high level reviews of
financial results in management meetings to detailed
reconciliation of accounts and day to day review and
authorisation of payments. The monthly review and
analysis of the financial reporting made on Company
level and Group level are important control activities
performed to ensure that the financial reporting does not
contain any significant errors and also to prevent fraud.
Information and communication
Orrön Energy has processes in place aiming to ensure
effective and correct information in regard to financial
reporting, both internally within the organisation as well
as externally to the public to meet the requirements for a
listed company. All information regarding the Company’s
policies, procedures and guidelines is available to the
Group’s employees and any updates and changes to
reporting and accounting policies are issued via email
and at regular finance meetings. In addition, the
Information Policy ensures that the public is provided
with accurate, reliable, and relevant information
concerning the Group and its financial position at the
right time.
Monitoring
Follow-up, improvements and the development of
systems, processes and controls take place on an
ongoing basis. Continuous monitoring of control
activities is made at different levels of the organisation
and involves both formal and informal procedures
performed by management, process owners or control
owners.
===== SIDA 45 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 45
Financial Statements of the Group
Consolidated Income Statement ......................................... 47
Consolidated Statement of Comprehensive Income
....................................................................................................................... 48
Consolidated Balance Sheet.................................................... 49
Consolidated Statement of Cash Flows ........................... 50
Consolidated Statement of Changes in Equity ............ 51
Note 1 - Accounting policies ..................................................... 52
Note 2 - Segment information ................................................ 58
Note 3 - Revenue and other income .................................. 59
Note 4 - Share in result of associates and joint
ventures .................................................................................................. 59
Note 5 - Finance income ............................................................ 59
Note 6 - Finance costs .................................................................. 59
Note 7 - Income tax ........................................................................ 59
Note 8 - Property, plant and equipment ........................... 61
Note 9 - Investments in associates and joint ventures
....................................................................................................................... 62
Note 10 - Financial instruments and financial risk
management ...................................................................................... 63
Note 11 - Projects under development ............................... 66
Note 12 - Supplementary information to the
Statement of Cash Flows ............................................................ 67
Note 13 - Equity ................................................................................... 67
Note 14 - Interest bearing loans and borrowings ...... 68
Note 15 - Provisions ......................................................................... 68
Note 16 - Trade and other payables ................................... 69
Note 17 - Changes in liabilities with cash flow
movements .......................................................................................... 69
Note 18 - Contingent liabilities and assets ..................... 69
Note 19 - Related party transactions .................................. 69
Note 20 - Average number of employees ...................... 70
Note 21 - Personnel expenses................................................... 70
Note 22 - Long term incentive plans ................................... 72
Note 23 - Remuneration to the Group’s Auditors ....... 75
Note 24 - Subsequent events .................................................. 75
Annual Accounts of the Parent Company ...................... 76
Parent Company Income Statement ................................. 77
Parent Company Comprehensive Income Statement
....................................................................................................................... 77
Parent Company Balance Sheet ........................................... 78
Parent Company Cash Flow Statement ........................... 79
Parent Company Statement of Changes in Equity .. 80
Note 1 - Finance Income ............................................................... 81
Note 2 - Finance costs ................................................................... 81
Note 3 - Income tax ......................................................................... 81
Note 4 - Receivables ....................................................................... 81
Note 5 - Other liabilities................................................................. 81
Note 6 - Supplementary information to the
Statement of Cash Flows ............................................................ 82
Note 7 - Remuneration to the Auditor ................................ 82
Note 8 - Proposed disposition of unappropriated
earnings .................................................................................................. 82
Note 9 - Pledged assets............................................................... 82
Note 10 - Shares in subsidiaries .............................................. 82
Financial Statements
and Notes
===== SIDA 46 =====
Financial Statements and Notes
46 Orrön Energy – Annual and Sustainability Report 2025
Consolidated Income Statement
1 Based on net result attributable to shareholders of the Parent Company.
MEUR Note 2025 2024
Revenue from power generation 3 24.9 25.7
Revenue from project sales 3 4.0 -
Other income 3 0.6 11.0
Operating expenses -15.5 -12.5
Cost of sales of projects under development -1.1 -
General and administration expenses 21, 22, 23 -17.9 -19.8
Depreciation -16.9 -15.9
Share in result of associates and joint ventures 4 -5.3 -6.0
Operating profit/loss -27.2 -17.5
Finance income 5 3.5 5.3
Finance costs 6 -5.8 -7.1
Net financial items -2.3 -1.8
Profit/loss before income tax -29.5 -19.3
Income tax 7 3.2 6.0
Net result -26.3 -13.3
Attributable to:
Shareholders of the Parent Company -26.3 -13.4
Non-controlling interest - 0.1
Earnings per share – EUR¹ 13.4 -0.09 -0.05
Earnings per share diluted – EUR¹ 13.4 -0.09 -0.05
===== SIDA 47 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 47
Consolidated Statement of
Comprehensive Income
MEUR 2025 2024
Net result -26.3 -13.3
Items that may be subsequently reclassified to profit or loss:
Exchange differences foreign operations 9.4 -4.4
Net result on cash flow hedges 1.0 -
Items that will not be reclassified to profit or loss:
Changes in the fair value of equity investments 0.1 0.4
Other comprehensive income, net of tax 10.5 -4.0
Total comprehensive income -15.8 -17.3
Attributable to:
Shareholders of the Parent Company -15.8 -17.4
Non-controlling interest - 0.1
===== SIDA 48 =====
Financial Statements and Notes
48 Orrön Energy – Annual and Sustainability Report 2025
Consolidated Balance Sheet
MEUR Note 2025 2024
ASSETS
Non-current assets
Intangible assets 0.3 0.1
Property, plant and equipment 8 278.3 281.3
Investment in associates and joint ventures 9 36.2 41.0
Deferred tax assets 7 45.2 40.2
Other non-current financial assets 10 46.2 46.7
406.2 409.3
Current assets
Projects under development 11 20.8 11.5
Other current assets 5.2 6.3
Trade receivables 0.5 0.5
Other current financial assets 10 7.6 3.0
Cash and cash equivalents 15.9 17.6
50.0 38.9
TOTAL ASSETS 456.2 448.2
EQUITY AND LIABILITIES
Equity
Share capital 13.1 0.4 0.4
Additional paid in capital 13.1 315.8 315.8
Other reserves 13.2 15.4 1.8
Retained earnings 13.3 18.8 32.1
Net result -26.3 -13.4
324.1 336.7
Non-controlling interest 2.2 2.7
TOTAL EQUITY 326.3 339.4
Non-current liabilities
Interest bearing loans and borrowings 14 106.4 83.6
Other non-current financial liabilities 10 0.1 -
Deferred tax liability 7 11.4 11.4
Provisions 15 2.4 2.1
120.3 97.1
Current liabilities
Trade and other payables 16 9.6 11.0
Current tax liabilities 7 - 0.1
Other current financial liabilities 10 - 0.6
9.6 11.7
TOTAL LIABILITIES 129.8 108.8
TOTAL EQUITY AND LIABILITIES 456.2 448.2
===== SIDA 49 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 49
Consolidated Statement of Cash Flows
1 Includes acquisitions of renewable energy assets and funding of joint ventures.
MEUR Note 2025 2024
Cash flows from operating activities
Net result -26.3 -13.3
Adjustments for items not included in the Cash flow 12 21.0 9.7
Interest received 0.2 4.2
Interest paid -4.5 -6.7
Distributions received - 0.2
Distributions paid to non-controlling interest - -0.3
Changes in working capital:
Changes in receivables -0.8 0.5
Changes in liabilities 0.5 -0.6
Total cash flows from operating activities -9.9 -6.3
Cash flows from investing activities
Investment in renewable energy business¹ -15.9 -15.0
Acquisition of subsidiary net of cash - -0.1
Investment in other financial fixed assets -0.1 -
Investment in associated companies -0.2 -1.8
Proceeds from project sales 1.7 -
Proceeds from equity investments 0.4 0.4
Proceeds from sale of joint venture 0.1 28.9
Repayment of loan from joint venture 0.5 20.2
Total cash flows from investing activities -13.5 32.6
Cash flows from financing activities
Drawdown of loan 17 26.0 65.0
Repayment of loan 17 -4.5 -94.8
Distributions paid to non-controlling interest -0.2 -
Financing fees paid -0.2 -0.3
Total cash flows from financing activities 21.1 -30.1
Change in cash and cash equivalents -2.3 -3.8
Cash and cash equivalents at the beginning of the year 17.6 21.8
Currency exchange difference in cash and cash equivalents 0.6 -0.4
Cash and cash equivalents at the end of the year 15.9 17.6
===== SIDA 50 =====
Financial Statements and Notes
50 Orrön Energy – Annual and Sustainability Report 2025
Consolidated Statement of Changes in Equity
MEUR
Share
capital
Additional paid-
in capital/other
reserves
Retained
earnings Total
Non-
controlling
interest
Total
equity
1 January 2024 0.4 318.3 31.8 350.5 2.9 353.4
Comprehensive income
Net result - - -13.4 -13.4 0.1 -13.3
Other comprehensive income - -4.0 - -4.0 - -4.0
Total comprehensive income - -4.0 -13.4 -17.4 0.1 -17.3
Transactions with owners
Share based payments - 3.4 - 3.4 - 3.4
Non-controlling interests - - - - -0.3 -0.3
Other - - 0.2 0.2 - 0.2
Total transaction with owners - 3.4 0.2 3.6 -0.3 3.3
31 December 2024 0.4 317.7 18.6 336.7 2.7 339.4
Comprehensive income
Net result - - -26.3 -26.3 - -26.3
Other comprehensive income - 10.5 - 10.5 - 10.5
Total comprehensive income - 10.5 -26.3 -15.8 - -15.8
Transactions with owners
Share based payments - 3.0 - 3.0 - 3.0
Non-controlling interests - - - - -0.2 -0.2
Other - - 0.2 0.2 -0.3 -0.1
Total transaction with owners - 3.0 0.2 3.2 -0.5 2.7
31 December 2025 0.4 331.2 -7.5 324.1 2.2 326.3
===== SIDA 51 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 51
Notes to the financial statements of the Group
Note 1 - Accounting policies
General information
Orrön Energy AB (publ), with company registration
number 556610-8055, is a limited liability company and
its registered office is located at Hovslagargatan 5,
Stockholm, Sweden. The Orrön Energy share is listed on
Nasdaq Stockholm.
The Company is active in the renewable energy sector
and holds a core portfolio consisting of high-quality cash
flow generating assets coupled with greenfield growth
opportunities. Its subsidiaries’ primary operations are
located in the Nordics, the UK, Germany, and France and
are described in detail in the Directors’ Report in this
Annual and Sustainability Report.
The consolidated financial statements for the financial
year ending on 31 December 2025 were approved by the
Board of Directors on 27 February 2026, and will be
presented to the Annual General Meeting for adoption on
1 April 2026.
Basis of preparation
The consolidated financial statements of Orrön Energy
have been prepared in accordance with IFRS Accounting
Standards and the Swedish Annual Accounts Act
(1995:1554). IFRS Accounting Standards comprise IFRS
Accounting Standards, IAS Standards, and
Interpretations developed by the IFRS Interpretations
Committee. In addition, RFR 1 Supplementary rules for
groups has been applied as issued by the Swedish
Corporate Reporting Board.
The preparation of financial statements in conformity
with IFRS requires the use of certain critical accounting
estimates and also requires management to exercise its
judgement in the process of applying the Group’s
accounting policies. The areas involving a higher degree
of judgement or complexity, or areas where assumptions
and estimates are significant to the consolidated
financial statements are disclosed under the headline
Critical accounting estimates and judgements. The
consolidated financial statements have been prepared
under the historical cost convention, except for items
that are required to be accounted for at fair value as
detailed in the Group’s accounting policies.
Intercompany transactions and balances have been
eliminated.
The consolidated financial statements are presented in
Euro (EUR), which is the currency the Group has elected
to use as the presentation currency. All amounts have
been rounded off to the nearest million EUR (MEUR), with
one decimal, except when otherwise indicated.
Accounting standards, amendments and
interpretations
New accounting principles effective from 2025
The Group has applied the following standards and
amendments for the first time for its annual reporting
period commencing 1 January 2025:
• The effects of changes in foreign exchange rates –
Amendments to IAS 21
The amendment did not have any impact on the
amounts recognised in prior years or in the current
period and are not expected to significantly affect future
periods.
New accounting principles effective from 2026 and later
Certain amendments to accounting standards have
been published that are not mandatory for 31 December
2025 reporting periods. The Group has not early adopted
any standard, interpretation or amendment that has
been issued but is not yet effective.
IFRS 18, Presentation and Disclosure in Financial
Statements is a new standard that is applicable from
1 January 2027. The new standard replaces IAS 1,
Presentation of financial statements, with focus on
updates to the structure of the income statement with
defined subtotals and required disclosures regarding
management defined performance measures. IFRS 18 will
mainly affect the presentation and disclosure of the
Group’s financial statements and is not expected to
impact total equity or net profit. The Group is currently
assessing the detailed implications for the structure of
the consolidated income statement and related
disclosures, including the presentation of alternative
performance measures.
No other new or amended accounting standards or
interpretations that have been published and are
effective as of 2026 and later are assessed to have a
material impact on Orrön Energy’s financial statements.
Principles of consolidation
Subsidiaries
Subsidiaries are all entities over which the Group has
control. The Group controls an entity when it is exposed
to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those returns
through its power over the entity. The existence and
effect of potential voting rights that are currently
exercisable or convertible are considered when
assessing the Group’s control. Subsidiaries are fully
consolidated from the date on which control is
transferred to the Group and are deconsolidated from
the date that control ceases.
===== SIDA 52 =====
Financial Statements and Notes
52 Orrön Energy – Annual and Sustainability Report 2025
The Group applies the acquisition method to account for
business combinations. The consideration transferred for
the acquisition of a subsidiary is the fair values of the
assets transferred, the liabilities incurred to the former
owners of the acquiree and the equity interests issued by
the Group. The consideration transferred includes the fair
value of any asset or liability resulting from a contingent
consideration arrangement. Identifiable assets acquired
and liabilities and contingent liabilities assumed in a
business combination are measured initially at their fair
values at the acquisition date.
The non-controlling interest in a subsidiary represents
the portion of the subsidiary not owned by the Group. The
equity of the subsidiary relating to the non-controlling
shareholders is shown as a separate item within equity
for the Group. The Group recognises any non-controlling
interest on an acquisition-by-acquisition basis, either at
fair value or at the non-controlling interest’s
proportionate share of the recognised amounts of the
acquiree’s identifiable net assets.
Intercompany transactions, balances, income and
expenses on transactions between group companies are
eliminated. Profits and losses resulting from
intercompany transactions are also eliminated.
Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies
adopted by the group.
Joint ventures
An investment in a joint venture is an investment in an
undertaking where the Group has joint control, generally
accompanying a shareholding of not more than 50
percent of the voting right. Joint control is the
contractually agreed sharing of control, which exists only
when decisions about the relevant activities require the
unanimous consent of the parties sharing control. Such
investments are accounted for in the consolidated
financial statements in accordance with the equity
method and are initially recognised at cost. The
difference between the acquisition cost of shares in a
joint venture and the net fair value of the assets, liabilities
and contingent liabilities of the joint venture recognised
at the date of acquisition is recognised as goodwill. The
goodwill is included within the carrying amount of the
joint venture and is assessed for impairment as part of
the investment. The Group’s share in the post-acquisition
results of the joint venture is recognised in the income
statement and the Group’s share in post-acquisition
movements in other comprehensive income of the joint
venture are recognised directly in other comprehensive
income of the Group. When the Group’s accumulated
share of losses in a joint venture equals or exceeds its
interest in the joint venture, the Group does not recognise
further losses, unless it has incurred obligations or made
payments on behalf of the joint venture.
Unrealised gains on transactions between the Group and
its joint ventures are eliminated to the extent of the
Group’s percentage in the joint ventures. Unrealised
losses are also eliminated unless transaction provides
evidence of an impairment of the asset transferred.
Associated companies
An investment in an associated company is an
investment in an undertaking where the Group exercises
significant influence but not control, generally
accompanying a shareholding of at least 20 percent but
not more than 50 percent of the voting rights. Such
investments are accounted for in the consolidated
financial statements in accordance with the equity
method and are initially recognised at cost. The
difference between the acquisition cost of shares in an
associated company and the net fair value of the assets,
liabilities and contingent liabilities of the associated
company recognised at the date of acquisition is
recognised as goodwill. The goodwill is included within
the carrying amount of the investment and is assessed
for impairment as part of the investment. The Group’s
share in the post-acquisition results of the associated
company is recognised in the income statement and the
Group’s share in post-acquisition movements in other
comprehensive income of the associated company are
recognised directly in other comprehensive income of
the Group.
When the Group’s accumulated share of losses in an
associated company equals or exceeds its interest in the
associated company, the Group does not recognise
further losses, unless it has incurred obligations or made
payments on behalf of the associate. Unrealised gains
on transactions between the Group and its associates
are eliminated to the extent of the Group’s percentage in
the associates. Unrealised losses are also eliminated
unless the transaction provides evidence of an
impairment of the asset transferred.
Foreign currencies
Items included in the financial statements of each of the
Group’s entities are measured using the currency of the
primary economic environment in which the entity
operates (functional currency). The consolidated
financial statements are presented in Euro, which is the
currency the Group has elected to use as the
presentation currency.
Transactions and balances
Monetary assets and liabilities denominated in foreign
currencies are translated at the rates of exchange
prevailing at the balance sheet date and foreign
exchange currency differences are recognised in the
income statement. Transactions in foreign currencies are
translated at exchange rates prevailing at the
transaction date. Exchange differences are included in
finance income/costs in the income statement except
deferred exchange differences on qualifying cash flow
hedges which are recorded in other comprehensive
income.
===== SIDA 53 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 53
Presentation currency
The balance sheets and income statements of foreign
Group companies are translated for consolidation
purposes. All assets and liabilities are translated at the
balance sheet date rates of exchange, whereas the
income statements are translated at average rates of
exchange for the year, except for transactions where it is
more relevant to use the rate of the day of the
transaction. The translation differences which arise are
recorded directly in the foreign currency translation
reserve within other comprehensive income. Upon
disposal of a foreign operation, the translation
differences relating to that operation will be transferred
from equity to the income statement and included in the
result on sale.
Exchange rates
For the preparation of the annual financial statements, the following currency exchange rates have been used
Classification of assets and liabilities
Non-current assets, long-term liabilities and non-current
provisions consist of amounts that are expected to be
recovered or paid more than twelve months after the
balance sheet date. Current assets, current liabilities and
current provisions consist solely of amounts that are
expected to be recovered or paid within twelve months
after the balance sheet date.
Property, plant and equipment
Property, plant and equipment are recognised at cost
less accumulated depreciation and any impairment. The
cost includes expenditure which is directly attributable to
the acquisition of the asset. The cost for wind farms also
includes, in contrast to the cost for other investments,
normal expenses for calibration and commissioning.
Interest expenses during the construction and assembly
period are included in the cost.
In conjunction with the granting of permits for the
construction of wind turbines, the Group commits to
restore land to its original condition after the end of the
turbines’ useful life. The estimated future expense for this
restoration is provided for in the consolidated financial
statements and is calculated using an estimated pre-tax
discount rate that reflect the current market assessment
of the time value of money.
Subsequent expenditure increases the asset’s carrying
amount or is recognised as a separate component only
when it is likely that the future economic benefits
associated with the asset will accrue to the Group, and
the cost of the asset can be reliably estimated. All other
forms of repair and maintenance are recognised as
expenses in the income statement in the period in which
they arise.
Land is assumed to have an indefinite useful life and is
therefore not depreciated. The value of wind farms is
depreciated on a straight-line basis down to a maximum
of the asset’s estimated residual value and over the
asset’s expected useful life. The depreciation of wind
farms is initiated when the commercial handover from
the constructor has taken place.
For the calculation of depreciation according to plan, the
following useful lives are applied:
- Buildings 20 years
- Wind turbines and foundations 10–30 years
- Other equipment 3–5 years
Impairment of assets
At each balance sheet date, the Group assesses whether
there is an indication that an asset may be impaired.
Where an indicator of impairment exists or when
impairment testing for an asset is required, the Group
makes a formal assessment of the recoverable amount.
Where the carrying value of a cash generating unit
(CGU) exceeds its recoverable amount the CGU is
considered impaired and is written down to its
recoverable amount. The recoverable amount is the
higher of fair value less costs to sell and value in use.
Value in use is calculated by discounting estimated
future cash flows to their present value using a pre-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the
asset. When the recoverable amount is less than the
carrying value an impairment loss is recognised with the
expensed charge to the income statement.
If indications exist that previously recognised impairment
losses no longer exist or are decreased, the recoverable
amount is estimated. When a previously recognised
impairment loss is reversed the carrying amount of the
asset is increased to the estimated recoverable amount
but the increased carrying amount may not exceed the
carrying amount after depreciation that would have
been determined had no impairment loss been
recognised for the asset in prior years.
Average Period end Average Period end
1 EUR equals SEK 11.0647 10.8215 11.4309 11.4590
1 EUR equals GBP 0.8566 0.8726 0.8466 0.8292
1 EUR equals CHF 0.9371 0.9314 0.9526 0.9412
31 Dec 202431 Dec 2025
===== SIDA 54 =====
Financial Statements and Notes
54 Orrön Energy – Annual and Sustainability Report 2025
Financial assets and liabilities
Assets and liabilities are recognised initially at fair value
plus transaction costs and subsequently measured at
amortised cost unless stated otherwise. Financial assets
are derecognised when the rights to receive cash flows
from the investments have expired or have been
transferred and the Group has transferred substantially
all risks and rewards of ownership. Financial assets and
liabilities are categorised according to whether they are
measured at amortised cost, at fair value through other
comprehensive income, or at fair value through profit or
loss. Orrön Energy recognises the following financial
assets and liabilities:
Financial assets at amortised cost
Financial assets that are held for collection of
contractual cash flows where those cash flows represent
solely payments of principal and interest are measured
at amortised cost. The Group’s loans and receivables
consist of fixed or determined cash flows related solely to
principal and interest amounts or contractual energy
sales. The Group’s intent is to hold these receivables until
cash flows are collected. Loans are recognised initially at
fair value, net of any transaction costs incurred and
subsequently measured at amortised cost.
Financial assets at fair value through profit or loss
(FVTPL)
Financial assets measured at FVTPL are assets which do
not qualify as financial assets at amortised cost or at fair
value through other comprehensive income.
Financial liabilities at amortised cost
Financial liabilities are measured at amortised cost,
unless they are required to be measured at FVTPL, or the
Group has opted to measure them at FVTPL. Borrowings
and accounts payable are recognised initially at fair
value, net of any transaction costs incurred, and
subsequently at amortised cost using the effective
interest method.
Financial liabilities at FVTPL
Financial liabilities measured at FVTPL are liabilities which
include embedded derivatives and cannot be classified
as amortised cost.
Impairment of financial assets
The measurement of impairment of financial assets is
based on the expected credit losses model. For the trade
and other receivables, the Group applies the simplified
approach which requires the use of the lifetime expected
loss provision for all trade receivables. In estimating the
lifetime expected loss provision, the Group considered
historical industry default rates as well as credit ratings
of major customers. Additional disclosure related to the
Group’s financial assets is included in Note 10.
Derivatives used for hedging
Derivative financial instruments may be used by the
Group to manage economic exposure to market risks
relating to prices, foreign currency exchange rates and
interest rates. Derivative financial instruments are initially
recognised at fair value on the date a derivative contract
is entered into and are subsequently remeasured at their
fair value. Where specific financial instruments are
executed, The Group assesses, both at the time of
purchase and on an ongoing basis, whether the financial
instrument used in the particular transaction is effective
in offsetting changes in fair values or cash flows of the
transaction.
The effective portion of changes in the fair value of
derivatives that qualify as cash flow hedges are
recognised in other comprehensive income. The gain or
loss relating to the ineffective portion, if any, is
recognised immediately in the income statement.
Amounts accumulated in other comprehensive income
are transferred to the income statement in the period
when the hedged item will affect the income statement.
When a hedging instrument no longer meets the
requirements for hedge accounting, expires or is sold,
any accumulated gain or loss recognised in other
comprehensive income remains in shareholders’ equity
until the forecast transaction no longer is expected to
occur, at which point it is transferred to the income
statement.
Borrowings
Borrowings are recognised initially at fair value, net of
transaction costs incurred. Borrowings are subsequently
stated at amortised costs using the effective interest
method, with interest expense recognised on an effective
yield basis. The effective interest method is a method of
calculating the amortised cost of a financial liability and
of allocating interest expense over the relevant period.
The effective interest rate is the rate that exactly
discounts estimated future cash payments through the
expected life of the financial liability, or a shorter period
where appropriate and is continuously reassessed.
Projects under development
Projects under development are intended for sale in the
ordinary course of business and are classified as current
assets. Expenditure directly attributable to the
development of the projects, including acquisition costs,
development costs and directly related overheads, is
capitalised as incurred.
Projects under development are measured at the lower
of cost and net realisable value. Net realisable value
represents the estimated selling price in the ordinary
course of business less estimated costs to complete and
costs necessary to make the sale.
Projects under development were included within current
assets in the Annual and Sustainability Report 2024.
Given the materiality of these amounts, management
has decided to present this balance sheet item as a
separate line item in the balance sheet from 2025.
Comparative figures have been reclassified to ensure
comparability.
===== SIDA 55 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 55
Cash and cash equivalents
Cash and cash equivalents include cash at bank, cash in
hand and interest bearing securities with original
maturities of three months or less.
Equity
Share capital consists of the registered share capital for
the Parent Company.
The change in fair value of hedging instruments which
qualify for hedge accounting is accounted for in the
hedge reserve. Upon settlement of the hedge instrument,
the hedged item will be transferred to the income
statement.
The currency translation reserve contains unrealised
translation differences due to the conversion of the
functional currencies into the presentation currency.
Retained earnings contain the accumulated results
attributable to the shareholders of the Parent Company.
Provisions
A provision is reported when the Company has a legal or
constructive obligation as a consequence of an event
and is more likely than not that an outflow of resources is
required to settle the obligation, and a reliable estimate
can be made of the amount.
Provisions are measured at the present value of the
expenditures expected to be required to settle the
obligation and the discount rate used in the calculation
is the risk-free rate with the addition of a credit risk
element. The increase in the provision due to passage of
time is recognised as finance costs.
On land where the Group is required to contribute to site
restoration costs, a provision is recorded to recognise the
future commitment. An asset is created, as part of the
wind farm, to represent the discounted value of the
anticipated site restoration liability and depleted over the
life of the asset. The corresponding accounting entry to
the creation of the asset recognises the discounted value
of the future liability. The discount applied to the
anticipated site restoration liability is subsequently
released over the life of the asset and is charged to
financial expenses. Changes in site restoration costs and
provisions are treated prospectively and consistent with
the treatment applied upon initial recognition.
Revenue recognition
Income is recognised in the income statement when
control has been passed to the customer. Orrön Energy’s
revenues include sale of generated electricity, sale of
projects, earned and sold electricity certificates and
guarantees of origin, as well as gains and losses from
electricity attributable to the hedged production.
Income arising from the sale of generated electricity is
recognised at a point in time in the period in which
delivery took place, at the spot price, forward price or
other contracted price.
Revenue from sale of projects is recognised when control
of the project is transferred to the customer, which is
normally when the customer takes legal ownership of the
projects. To the extent that the transaction price includes
a variable consideration, the transaction price
constitutes an estimated expected value. A variable
consideration is recognised only to the extent it is
probable.
Income relating to electricity certificates is recognised
over time at the applicable spot price, forward price or
other contracted price for the period in which the
electricity certificate is earned, which is the period in
which the electricity was produced.
Electricity certificates are recognised under inventories in
the balance sheet when they are registered in the
Swedish Energy Agency’s account, and as accrued
income for any periods during which they have been
earned but not yet registered.
Borrowing costs
Borrowing costs are recognised in the income statement
in the period in which they occur. Interest on borrowings
to finance the acquisition of producing wind farms is
charged to the income statement as incurred.
General and administration expenses
Expenses which are classified as general, and
administration expenses include all costs which are not
directly attributable to operations. These costs mainly
consist of personnel costs, office costs, costs for travel
and external services.
Employee benefits
Short-term employee benefits
Short-term employee benefits such as salaries, social
premiums and holiday pay, are expensed when incurred.
Pension obligations
Pensions are the most common long-term employee
benefits. The pension schemes are funded through
payments to insurance companies. The Group’s pension
obligations consist of defined contribution plans. A
defined contribution plan is a pension plan under which
the Group pays fixed contributions. The Group has no
further payment obligations once the contributions have
been paid. The contributions are recognised as an
expense when they are due.
Share based payments
Equity-settled share-based payments are recognised in
the income statement as expenses during the vesting
period and as equity in the Balance Sheet. The
option/award is measured at fair value at the date of
grant using an option pricing model, or at the value of
the share at grant depending on the condition of the
plan, and is charged to the income statement over the
vesting period without revaluation of the value of the
option/award.
===== SIDA 56 =====
Financial Statements and Notes
56 Orrön Energy – Annual and Sustainability Report 2025
Income taxes
The components of tax are current and deferred. Tax is
recognised in the income statement, except to the extent
that it relates to items recognised in other
comprehensive income or directly in equity, in which
case it is matched.
Current tax is tax that is to be paid or received for the
year in question and also includes adjustments of
current tax attributable to previous periods.
Deferred tax is a non-cash charge provided, using the
liability method, on temporary differences arising
between the tax bases of assets and liabilities and their
carrying values.
Temporary differences can occur, for example, where
investment expenditure is capitalised for accounting
purposes, but the tax deduction is accelerated, or where
site restoration costs are provided for in the financial
statements but not deductible for tax purposes until they
are actually incurred. However, the deferred income tax
is not accounted for if it arises from initial recognition of
an asset or liability in a transaction other than a business
combination that at the time of the transaction affects
neither accounting nor taxable profit nor loss.
Deferred income tax is provided on temporary
differences arising on investments in subsidiaries and
associates, except where the timing of the reversal of the
temporary difference is controlled by the Group, and it is
probable that the temporary difference will not reverse in
the foreseeable future.
Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantively enacted
by the balance sheet date and are expected to apply
when the related deferred income tax asset is realised, or
the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent
that it is probable that future taxable profit will be
available against which the temporary differences can
be utilised. Deferred tax assets are offset against
deferred tax liabilities in the balance sheet where they
relate to the same jurisdiction.
Segment reporting
The division of segment reporting is based on the
Group’s activities and the manner in which operations
are managed and reported internally. The Operations
segment includes the Group’s holdings in renewable
electricity production assets, generating revenue from
the sale of electricity and related operating activities. The
Development segment comprises the Company’s
activities related to the greenfield project portfolio. The
Corporate segment represents Group-wide functions
and shared activities, including central administration,
governance, financing and other support functions that
are not directly attributable to the Operations or
Development segments.
Critical accounting estimates and judgements
The management of Orrön Energy has to make
estimates and judgements when preparing the financial
statements of the Group. Uncertainties in the estimates
and judgements could have an impact on the carrying
amount of assets and liabilities and the Group’s result.
The most important estimates and judgements in
relation thereto are:
Contingent payments
The Group has entered into arrangements where it may
receive variable consideration in connection with the
disposal of assets or interests in renewable energy
projects. Such payments are dependent on the
occurrence of future events or the fulfilment of
contractual conditions, for example the achievement of
development milestones or permitting outcomes.
The recognition and measurement of contingent
payments require significant judgement and estimation
by management, particularly in assessing:
• The probability that the contractual conditions will
be satisfied and that payment will be received.
• The expected amount and timing of future cash
inflows.
Contingent payments are recognised when it is probable
that the Group will receive the economic benefits and the
amount can be reliably measured. Where applicable,
such assets are estimated using either the expected
value method or the most likely amount method
depending on which method better predicts the amount
of consideration. Variable consideration is reassessed at
each reporting date, and changes in the estimated
amount are recognised in revenue in the period in which
the estimate changes. Actual outcomes may differ from
management’s current estimates, which could result in
adjustments to the carrying amount of the contingent
payment asset in future periods.
===== SIDA 57 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 57
Note 2 - Segment information
Segment reporting
Group management, which forms the Company’s Investment Committee is the Chief operating Decision Maker
monitors the operation results of the segments separately for the purpose of making decisions. The division of segment
reporting is based on the Group’s activities and the manner in which operations are managed and reported internally.
The Operations segment includes the Group’s holdings in renewable electricity production assets, generating revenue
from the sale of electricity and related operating activities. The Development segment comprises the Company’s
activities related to the greenfield project portfolio. The Corporate segment represents Group-wide functions and
shared activities, including central administration, governance, financing and other support functions that are not
directly attributable to the Operations or Development segments. Costs attributable to Corporate include a non-cash
item of MEUR 3.0 million relating to long-term incentive programs.
MEUR Note Operations Development Corporate Total
Revenue from power generation 3 24.9 - - 24.9
Revenue from project sales 3 - 4.0 - 4.0
Other income 3 0.6 - - 0.6
Revenue 25.5 4.0 - 29.5
Depreciation -16.9 - -0 -16.9
Costs -19.4 -1.1 -14.0 -34.5
Share in result of associates and joint
ventures 4 -5.3 - - -5.3
Operating profit/loss -16.1 2.9 -14.0 -27.2
Net financial items 5,6 - - -2.3 -2.3
Profit/loss before income tax -16.1 2.9 -16.3 -29.5
Income tax 7 3.2 - - 3.2
Net result -12.9 2.9 -16.3 -26.3
MEUR Note Operations Development Corporate Total
Property, plant and equipment 8 278.3 - - 278.3
Investment in associates and joint
ventures 9 36.2 - - 36.2
Projects under development 11 - 20.8 - 20.8
Other non-current and current assets 118.1 2.8 - 120.9
Total assets 432.6 23.6 - 456.2
Total liabilities - - 129.9 129.9
Geographic information
Revenue
MEUR 2025 2024
Germany 4.0 -
Sweden 25.5 36.7
29.5 36.7
Revenue from project sales is recognized based on the geographical location of the divested projects, while revenue
from electricity generation is recognized based on the geographical location of the registered office of the company
generating the revenue.
Non-current assets
MEUR 2025 2024
Sweden 270.3 273.3
Switzerland 8.0 8.0
278.3 281.3
Non-current assets for this purpose consist of property, plant and equipment.
===== SIDA 58 =====
Financial Statements and Notes
58 Orrön Energy – Annual and Sustainability Report 2025
Note 3 - Revenue and other income
Revenue from power generation of MEUR 24.9 (MEUR 25.7) included sales of ancillary services, earned electricity
certificates and guarantees of origin. Financial hedging contracts also impacted revenue from power generation for
the year with MEUR -0.5 (MEUR –).
Revenue from power generation is mainly derived from sales at the spot market, to electricity trading companies, and
near 100 percent of the Group’s total revenue from power generation was contracted with two customers.
Revenue from project sales for the year amounted to MEUR 4.0 (MEUR –) and represented the consideration from the
sale of the Company’s first 76 MW solar project in Germany. The total consideration amounts to MEUR 4.0, of which
MEUR 2.0 is contingent upon municipal and legislative approvals.
Other income for the year of MEUR 0.6 (MEUR 11.0) and included service income from external companies. Other income
for the previous year included a profit of MEUR 10.9 made on the sale of the Leikanger hydropower plant in April 2024
and liquidated damages of MEUR 0.1.
Note 4 - Share in result of associates and joint ventures
Note 5 - Finance income
Note 6 - Finance costs
Note 7 - Income tax
MEUR 2025 2024
Metsälamminkangas Wind Oy (50%) -5.3 -5.8
Other - -0.2
-5.3 -6.0
MEUR 2025 2024
Foreign currency exchange gain, net 1.1 -
Interest income 2.3 5.3
Other 0.1 -
3.5 5.3
MEUR 2025 2024
Foreign currency exchange loss, net - 0.8
Interest expense 4.1 4.9
Other 1.7 1.4
5.8 7.1
MEUR 2025 2024
Current tax -0.1 -0.1
Deferred tax 3.3 6.1
3.2 6.0
===== SIDA 59 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 59
The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the tax rate of
Sweden as follows:
There is no tax charge/credit relating to components of other comprehensive income.
Corporation tax asset – current and deferred
Corporation tax liability – current and deferred
Specification of deferred tax assets and tax liabilities
Unrecognised tax losses
The Group has Swedish tax loss carry forwards of
approximately MEUR 232.8 (MEUR 216.4). At year-end
2025, the deferred tax asset amounts to MEUR 40.3
(MEUR 38.0) relating to these tax losses. After considering
the deferred tax asset recognised, the remaining
unrecognised tax losses amount to MEUR 37.2 (MEUR 31.7)
at year-end. The tax losses can be carried forward
indefinitely.
International tax reform OECD Pillar 2 model rules
The Group fell within the scope of the OECD Pillar 2 model
rules which are implemented in Sweden through the Law
on Top-up Tax (Sw. Lag (2023:875) om tilläggsskatt) and
was within scope until the end of 2024 only. The new law
entered into force 1 January 2024 and applies to fiscal
years beginning after 31 December 2023.
Under Pillar 2, the Group is liable to pay top-up tax for
jurisdictions where the Group has low-taxed operations.
Operations are deemed as low-taxed if the Group’s
effective tax rate in a jurisdiction, calculated in
accordance with the certain rules of Pillar 2, falls below
the minimum tax rate of 15 percent. Pillar 2 also includes
temporary safe harbour rules which, if fulfilled for a
particular jurisdiction, implies that the top-up tax for the
jurisdiction is deemed to be zero.
The Group has concluded that Group companies meet
the safe harbour rules, and that the enactment of Pillar 2
will not have any material impact on the Group's
effective tax rate.
MEUR 2025 2024
Profit/loss before tax -29.5 -19.3
Tax calculated at the corporate tax rate in Sweden 20.6% (20.6%) 6.1 4.0
Tax effect of expenses non-deductible for tax purposes -0.1 -0.5
Increased/decreased unrecorded tax losses -4.8 -5.1
Tax effect on accelerated depreciation 3.3 7.6
Deferred tax asset on unrecorded tax losses -1.3 -
Tax per income statement 3.2 6.0
2025 2024 2025 2024
Sweden - - 45.2 40.2
- - 45.2 40.2
Current Deferred
2025 2024 2025 2024
Sweden - - 11.4 11.4
Switzerland - 0.1 - -
- 0.1 11.4 11.4
Current Deferred
MEUR 2025 2024
Deferred tax assets
Temporary differences on property, plant and equipment 4.9 2.2
Temporary differences on tax loss carry forwards 40.3 38.0
45.2 40.2
Deferred tax liabilities
Excess values on property, plant and equipment -11.4 11.4
-11.4 11.4
===== SIDA 60 =====
Financial Statements and Notes
60 Orrön Energy – Annual and Sustainability Report 2025
Note 8 - Property, plant and equipment
Estimated useful life
Buildings are depreciated using an estimated useful life
of 20 years and taking into account the residual value.
Plant and machinery represent the Group’s wind farms
and consists of wind turbines, foundations and other
equipment. The estimated useful lives of wind farms are
reviewed on a park-by-park basis. Wind turbines and
foundations are depreciated over 10 to 30 years and
other equipment is depreciated over three to five years.
For other assets, the depreciation charge for the year is
based on cost and an estimated useful life of three to
five years for office equipment and other assets.
Impairment
Orrön Energy carries out impairment tests of individual
cash-generating units when impairment triggers are
identified. No impairment need was identified during the
year.
Capitalised borrowing costs
No interest expenses were capitalised in 2025 or in 2024.
Commitments
At the balance sheet date, the Group had contracted
future capital expenditure of MEUR 0.3 (MEUR 0.9), which
has not been recognised as liabilities.
Leases
The Group's leases mainly relate to land leases and
rented offices, and the value of the leases is not material.
The Group has entered into land lease agreements for its
wind farms which are variable. The lease payments are
paid at a percentage of the income from electricity
production. The lease term for a land lease is deemed to
coincide with the useful life of the wind turbine
constructed on the land and has not been recognised as
a lease liability due to its low value.
In 2025, the Group has incurred costs of MEUR 1.1
(MEUR 1.0) in total for variable leases. The yearly cost for
short term leases and non-material leases amounted to
less than MEUR 0.1 (MEUR 0.1) in total.
MEUR
Land and
buildings
Plant and
machinery
Site restoration
asset Other Total
Cost
1 January 2024 17.5 363.6 - 5.4 386.5
Additions 0.4 7.2 - - 7.6
Reclassifications 1.2 -1.0 1.0 -1.2 -
Change in estimation - -1.1 - - -1.1
Disposal - 0.9 - -0.1 0.8
Currency translation difference -0.1 -7.9 - -0.1 -8.1
31 December 2024 19.0 361.7 1.0 4.0 385.7
Additions 0.1 4.8 - 0.1 5.0
Reclassifications - 30.5 - 0.8 31.3
Disposal - - - - -
Currency translation difference 0.1 12.8 0.1 0.1 13.1
31 December 2025 19.2 409.8 1.1 5.0 435.1
Depreciation
1 January 2024 -1.7 -85.1 - -4.5 -91.3
Depreciation charge -0.4 -15.0 - -0.1 -15.5
Reclassifications -0.4 -0.5 - 0.5 -0.4
Currency translation difference - 2.8 -0.1 0.1 2.8
31 December 2024 -2.5 -97.8 -0.1 -4.0 -104.4
Depreciation charge - -16.8 -0.1 - -16.9
Reclassifications -0.4 -31.0 - - -31.4
Currency translation difference -0.1 -3.9 - -0.1 -4.1
31 December 2025 -3.0 -149.5 -0.2 -4.1 -156.8
Net book value
31 December 2025 16.2 260.3 0.9 0.9 278.3
31 December 2024 16.5 263.9 0.9 - 281.3
===== SIDA 61 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 61
Note 9 - Investments in associates and joint ventures
The Group's interest held in Metsälamminkangas Wind
Oy relates to a wind farm in Finland. The remaining
interests relate to investments made by Orrön Energy
Sweden AB.
The table below summarises the financial information for
the joint ventures, which represent the large majority of
total investments in associates and joint ventures. The
investments are accounted for using the equity method
and the amounts represent 100 percent of those
companies.
Income statement
Number of
shares Share %
2025
Book amount
MEUR
2024
Book amount
MEUR
Metsälamminkangas Wind Oy 1,250 50.0 28.9 34.2
Eagle Wind JV AB 5,000 20.0 4.9 4.6
Eslöv Vind AB 365 36.5 - 0.1
Gärdslösa Drift AB 340 33.3 - -
Istad Wind Power Management AB 240 20.0 - -
Kräklingbo Vind AB 175 35.0 - -
Orust Drift AB 320 33.3 - -
Ryd-Rönnerum Drift AB 200 20.0 - -
Slättens vind AB (publ) 280,134 27.0 2.4 2.1
Torsburgen Vind AB 700 35.0 - -
Östra Sallerup Vind AB 12 25.0 - -
36.2 41.0
MEUR 2025 2024
Revenue from power generation 9.3 11.1
Operating costs -8.2 -6.4
Depreciation -7.3 -7.3
Operating profit -6.2 -2.6
Net financial items -4.3 -9.1
Profit/Loss before tax -10.5 -11.7
Income tax - 0.1
Net result -10.5 -11.6
Metsälamminkangas Wind OY
===== SIDA 62 =====
Financial Statements and Notes
62 Orrön Energy – Annual and Sustainability Report 2025
Balance sheet
Note 10 - Financial instruments and financial risk management
Capital management
The Group’s objectives when managing capital are to
safeguard the Group’s ability to continue as a going
concern and to maintain an optimal capital structure in
order to support its operations and maximise
shareholder value. The Group may put in place new
credit facilities, repay debt, or other activities as
appropriate. Group management continuously monitor
and manage the Group’s net cash/net debt position in
order to assess the requirement for changes to the
capital structure to meet objectives and to maintain
flexibility and monitors capital. Net cash/net debt is
calculated as interest bearing loans and borrowings less
cash and cash equivalents. Orrön Energy is not subject to
any externally imposed capital requirements.
Net cash / Net debt
Interest rate risk
Interest rate risk is the risk to the earnings due to
uncertain future interest rates. Orrön Energy is exposed to
interest rate risk through the corporate credit facility, see
also Liquidity risk below. No interest expenses have been
capitalised during 2025.
Orrön Energy assesses the benefits of interest rate
hedging on borrowings on a continuous basis.
Interest rate exposure
The following table summarises the effect that a change
in interest rate would have on operating profit for the
year ended 31 December 2025.
Sensitivity analysis interest rate
The Group had no outstanding interest rate hedges at year-end.
MEUR 2025 2024
Non-current assets
Property, plant and equipment 155.5 163.0
Current assets
Other current financial assets 1.7 1.8
Cash and cash equivalents 2.7 2.4
Total assets 159.9 167.2
Equity 39.8 50.4
Non-current liabilities
Untaxed reserves 19.4 19.4
Interest bearing loans and borrowings 90.0 90.0
Provisions 0.2 0.1
Current liabilities 10.5 7.3
TOTAL LIABILITIES 120.1 116.8
TOTAL EQUITY AND LIABILITIES 159.9 167.2
Metsälamminkangas Wind OY
MEUR 2025 2024
Interest bearing loans and borrowings – Non-current 106.4 83.6
Interest bearing loans and borrowings – Current - 0.6
Less: Cash and cash equivalents -15.9 -17.6
90.5 66.6
Net result, MEUR -26.3 -26.3
Shift in interest rates 100 basis points Increase Decrease
Total effect on net result, MEUR -1.0 1.0
===== SIDA 63 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 63
Currency risk
Orrön Energy is a Swedish company which is operating
internationally and therefore attracts foreign exchange
exposure, both on transactions as well as on the
translation from functional currency for entities to the
Group’s presentation currency, the Euro. The main
functional currencies of Orrön Energy’s subsidiaries are
the Swedish krona, the Swiss franc and the British pound,
as well as the Euro, making the Company sensitive to
fluctuations of these currencies against the Euro.
Foreign exchange exposure
The following table summarises the effect that a change
in these currencies against the Euro would have on net
result through the conversion of the monetary assets
and liabilities of the Group’s subsidiaries from functional
currency to the presentation currency Euro for the year
ended 31 December 2025.
Sensitivity analysis foreign exchange rate
The Group had no outstanding currency hedges at year-end.
Price risk
Energy prices are affected by the normal economic
drivers of supply and demand as well as market
uncertainty. Factors that influence these include
operational decisions, natural disasters, economic
conditions, political instability or conflicts or actions by
major energy exporting countries. Price fluctuations can
affect Orrön Energy’s financial position.
Orrön Energy’s policy is to apply a flexible approach to
electricity price hedging, with decisions taken based on
an assessment of the benefits of hedge contracts in
specific circumstances, with the aim to mitigate
electricity price volatility and ensuring more predictable
revenues. At year-end 2025, the Company had entered
into hedge contracts related to the Company’s power
generation in the SE3 and SE4 price areas, covering
approximately 35 percent of the 2026 proportionate
power generation volumes in these price areas, at an
average baseload price of EUR 59 per MWh.
At balance sheet date, Orrön Energy had outstanding
financial hedges as outlined in the table to the right:
Price area EUR/MWh GWh Settlement period
SE3 69 42 Q1 2026
SE3 39 20 Q2 2026
SE4 78 42 Q1 2026
SE4 46 32 Q2 2026
SE4 40 31 Q3 2026
SE4 62 43 Q4 2026
Total 210
In January 2026, Orrön Energy entered into additional
financial hedges as outlined in the table below:
Price area EUR/MWh GWh Settlement period
SE2 31 12 Q2 2026
SE2 22 11 Q3 2026
SE3 41 4 Q2 2026
Total 27
Energy price exposure
The table below summarises the effect that a change in
electricity prices would have had on the net result and
equity on 31 December 2025.
Sensitivity analysis energy price
Net result, MEUR -26.3 -26.3
Shift in currency exchange rates Average rate 2025 10% EUR weakening 10% EUR strengthening
SEK/EUR 11.0647 1.3 -1.3
GBP/EUR 0.8566 -0.1 0.1
CHF/EUR 0.9371 - -
Total effect on net result, MEUR 1.2 -1.2
Net result, MEUR -26.3 -26.3
Shift in energy prices 25% weakening 25% strengthening
Total effect on net result, MEUR -5.7 5.7
===== SIDA 64 =====
Financial Statements and Notes
64 Orrön Energy – Annual and Sustainability Report 2025
Credit risk
On 31 December 2025, trade receivables amounted to
MEUR 0.5 (MEUR 0.5). There is no recent history of default
and no future losses are expected. Other long-term and
short-term receivables are considered recoverable and
no provision for bad debt was accounted for at year-end
2025. Cash and cash equivalents are maintained with
banks having strong long-term credit ratings.
Liquidity risk
Liquidity risk is defined as the risk that the Group could
not be able to settle or meet its obligations on time or at
a reasonable price. Liquidity and funding risks and
related processes and policies are closely overseen by
Group management.
The Company has secured a three-year revolving credit
facility, established in July 2023, totalling MEUR 170, with a
floating interest rate set at 1.8 percent above the
reference rate for the borrowed currency.
The revolving credit facility agreement provides that an
“event of default” occurs where the Group does not
comply with certain material covenants or where certain
events occur as specified in the agreement, as are
customary in financing agreements of this size and
nature. These financial covenants are calculated on a
proportionate basis as described in section Key financial
data on page 89 of this report. They consist of a
minimum liquidity covenant (cash and cash equivalents
plus available funds under credit facilities) and Debt
Service Cover Ratio covenant (ratio of proportionate
EBITDA adjusted for certain non-cash expenses to debt
service).
Due to a temporary situation in which the Company did
not meet one of its covenant requirements, the lenders
granted a waiver in the second quarter of 2025 until 31
March 2026. As part of the waiver terms, the interest
margin was increased to 2.05 percentage points above
the reference rate. In September 2025, the maturity of the
revolving credit facility was extended by one year to July
2027 through the exercise of an extension option. The
agreement also provides for one additional one-year
extension option.
The table below analyses the Group’s financial liabilities
into relevant maturity groupings based on the remaining
period at the balance sheet date to the contractual
maturity date. The amounts presented represent
undiscounted contractual cash flows.
1 Including an extension option.
MEUR 31 Dec 2025 31 Dec 2024
Repayment within 6 months:
Trade and other payables 9.6 11.0
Repayment after 6 months:
Other current financial liabilities - 0.6
Repayment within 1–2 years:
Interest bearing loans and borrowings 1.9 1.9
Repayment within 2–5 years:
Interest bearing loans and borrowings¹ 104.5 81.7
116.0 95.2
===== SIDA 65 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 65
Classification of financial instruments
The tables below present the classification of the
financial instruments in the balance sheet in 2025 and
2024. Financial assets and liabilities are categorised
according to whether they are measured at amortised
cost, at fair value through other comprehensive income,
or at fair value through profit or loss.
The nature of financial assets and liabilities is, in all
material respects, the same as on 31 December 2024. The
carrying amounts and fair values are deemed to
essentially correspond with one another. Non-current
financial assets include loans to joint ventures of
MEUR 45.9 (MEUR 46.4) and other current financial assets
of MEUR 0.3 (MEUR 0.3).
For financial assets and liabilities measured at fair value
in the balance sheet, the following fair value
measurement hierarchy is used:
Level 1: based on quoted prices in active markets;
Level 2: based on inputs other than quoted prices as
within level 1, that are either directly or indirectly
observable;
Level 3: based on inputs which are not based on
observable market data.
Note 11 - Projects under development
The project development portfolio consists of early-stage greenfield projects in onshore wind, solar, batteries and data
centres in the Nordics, the UK, Germany, and France.
Projects under development were included within non-current assets in the Annual and Sustainability Report 2024.
Given the materiality of these amounts, management has decided to present this balance sheet item as a separate
line item in the balance sheet from 2025. Comparative figures have been reclassified to ensure comparability.
MEUR Level 2025 2024
Financial assets
Financial assets at amortised cost
Non-current financial assets 2 46.2 46.7
Trade receivables 0.5 0.5
Other current financial assets 6.6 2.6
Cash and cash equivalents 15.9 17.6
69.2 67.4
Financial assets at fair value through other
comprehensive income
Other current financial assets – Derivative instruments 2 1.0 -
Other current financial assets – Equity securities 1 - 0.4
1.0 0.4
Financial liabilities
Financial liabilities at amortised cost
Interest bearing loans and borrowings 106.4 83.6
Trade and other payables 9.6 11.0
Other current financial liabilities - 0.6
116.0 95.2
MEUR 2025 2024
Finland 1.1 0.7
France 2.5 1.7
Germany 6.9 3.5
Sweden 1.4 0.4
United Kingdom 8.9 5.2
20.8 11.5
===== SIDA 66 =====
Financial Statements and Notes
66 Orrön Energy – Annual and Sustainability Report 2025
Note 12 - Supplementary information to the Statement of Cash Flows
The Consolidated Statement of Cash Flows is prepared in accordance with the indirect method.
Note 13 - Equity
13.1 - Share capital and share premium
Share capital
The Company’s issued share capital amounted to
SEK 3,478,713 represented by 285,905,187 shares with a
quota value of SEK 0.01 each (rounded off). All shares are
ordinary shares with equal right to dividends.
During 2024, the number of shares and votes in the
Company decreased following the retirement of 19,427 of
the Company’s own shares as resolved upon during an
Extraordinary General Meeting (EGM) held on 7 August
2024. The shares were received as a result of a legacy
corporate transaction, and the acquisition value of these
shares was nil. A resolution to reduce the share capital
by SEK 236.36 through retirement of these shares was
approved by the EGM. The purpose of the reduction of
the share capital was allocation to unrestricted equity.
The EGM further resolved to increase the share capital by
SEK 236.36. No new shares were issued in connection with
the increase of the share capital. The amount by which
the share capital was increased has been transferred to
share capital from unrestricted equity.
13.2 - Other reserves
MEUR 2025 2024
Adjustments for items not included in the Cash Flows:
Depreciation and amortisation 16.9 15.9
Current tax 0.1 0.1
Deferred tax -3.3 -6.1
Long-term incentive plans 3.0 3.4
Foreign currency exchange gain/loss -1.2 0.6
Amortisation of deferred financing fees 0.7 0.4
Interest income -2.3 -5.3
Interest expense 4.6 5.5
Unwinding of site restoration discount 0.1 0.1
Result from associated companies and joint ventures 5.3 6.0
Project sale reclass to investing activities -2.9 -
Profit from sale of joint venture - -10.9
21.0 9.7
Additional paid in capital
Number of shares Par value MSEK Par value MEUR MEUR
1 January 2024 285,924,614 3.5 0.4 315.8
Retirement of shares -19,427 - - -
31 December 2024 285,905,187 3.5 0.4 315.8
Retirement of shares - - - -
31 December 2025 285,905,187 3.5 0.4 315.8
Share capital
Fair value reserve Hedging reserve
Currency translation
reserve
Share option plans Value of
employee services Total
1 January 2024 - - -0.9 3.5 2.6
Other comprehensive income 0.4 - -4.6 - -4.2
Transactions with owners - - - 3.5 3.5
31 December 2024 0.4 - -5.5 7.0 1.9
Other comprehensive income 0.1 1.0 9.4 - 10.5
Transactions with owners - - - 3.0 3.0
31 December 2025 0.5 1.0 3.9 10.0 15.4
===== SIDA 67 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 67
13.3 - Retained earnings
1 Reclassification of share-based payments from retained earnings to other reserves.
13.4 - Earnings per share
Note 14 - Interest bearing loans and borrowings
Orrön Energy is not subject to any externally imposed
capital requirements. The revolving credit facility
agreement provides that an “event of default” occurs
where the Group does not comply with certain material
covenants or where certain events occur as specified in
the agreement, as are customary in financing
agreements of this size and nature. See section Liquidity
risk in Note 10 Financial instruments and financial risk
management.
The Company's credit facility held by the group entity
Orrön Energy Finance AB is secured by a pledge over the
shares of certain Group companies. The pledged assets
amounted to MEUR 3,780.8 (MEUR 3,780.8) at year-end
and represented the carrying value of the pledge of the
Group companies whose shares are pledged.
Note 15 - Provisions
MEUR 2025 2024
1 January 18.6 31.8
Net result for the year -26.3 -13.4
Other 0.2 0.2
31 December -7.5 18.6
2025 2024
Net result attributable to shareholders of the Parent Company, MEUR -26.3 -13.4
Weighted average number of shares of the year 285,905,187 285,918,085
Earnings per share, EUR -0.09 -0.05
MEUR 2025 2024
Non-current
Bank loans 106.4 83.6
106.4 83.6
Current
Bank loans - 0.6
- 0.6
Site restoration
provision Other Total
1 January 2024 3.0 - 3.0
Changes in estimates -1.0 0.1 -0.9
Unwinding of site restoration discount 0.1 - 0.1
Currency translation difference -0.1 - -0.1
31 December 2024 2.0 0.1 2.1
Changes in estimates 0.1 - 0.1
Unwinding of site restoration discount 0.1 - 0.1
Currency translation difference 0.1 - 0.1
31 December 2025 2.3 0.1 2.4
Non-current provision 2.3 0.1 2.4
Current provision - - -
Total 2.3 0.1 2.4
===== SIDA 68 =====
Financial Statements and Notes
68 Orrön Energy – Annual and Sustainability Report 2025
Site restoration provision
When the Group has an obligation to contribute to
environmental restoration on land where it has its
operations, a provision is recorded to recognise the
future commitment.
Provisions are measured at the present value of the
amount expected to be required to settle the obligation.
In calculating the present value of the site restoration
provision, a discount rate of 4.5 percent (4.5 percent)
was used, based on long-term risk-free interest rate
projections. The provision relates to the liability
associated with the Company’s operational assets in
Sweden and the change in estimates was recorded
following technical review of the estimated future costs
related to the environmental restoration of land. See
section Provisions in Note 1 Accounting policies.
Note 16 - Trade and other payables
Note 17 - Changes in liabilities with cash flow movements
The changes in liabilities and relating cash flow movements are disclosed as part of financing activities in the cash
flow statement and are detailed as follows:
Note 18 - Contingent liabilities and assets
In November 2021, the Swedish Prosecution Authority
brought criminal charges against former representatives
of the Company in relation to past operations in Sudan
from 1999 to 2003. The charges also included claims
against the Company for a corporate fine of MSEK 3.0
and forfeiture of economic benefits of MSEK 2,381.3, which
according to the Swedish Prosecution Authority
represents the value of the gain of MSEK 720.1 that the
Company made on the sale of an asset in 2003. The
Company refutes that there are any grounds for
allegations of wrongdoing by any of its former
representatives and sees no circumstance in which a
corporate fine or forfeiture could become payable. The
claim for forfeiture of economic benefits was increased
from MSEK 1,391.8 by the Swedish Prosecution Authority in
August 2023. This latest increase to the claimed forfeiture
amount means that the Prosecutor has presented three
completely different amounts, based on three different
methodologies, over the past seven years, raising serious
questions about the substance and credibility of the
Prosecutor’s claim. It is obvious that the methodology
used by the Prosecutor to arrive at the claimed forfeiture
amount is fundamentally flawed, leading to an
unreasonable forfeiture claim which has no basis in law
and is highly speculative. Any potential corporate fine or
forfeiture of economic benefits would only be imposed
after an adverse final conclusion of the case against
former representatives of the Company. The trial at the
Stockholm District Court started in September 2023 and
is scheduled to finish during the second quarter 2026.
The Company considers this to be a contingent liability
and therefore no provision has been recognised.
A portion of the Company’s past operations were held
through a Canadian holding structure when acquired in
2006. The tax filings in Canada since 2006 in relation to
both corporate income tax and withholding tax were
under review by the Canadian Tax Office. All tax has been
paid in relation to these tax filings, and no provision has
been recognised. The Canadian Tax Office has now
concluded the review in line with the Company’s position.
Note 19 - Related party transactions
Orrön Energy recognises the following related parties:
associated companies, jointly controlled entities, key
management personnel and members of their close
family or other parties that are partly, directly or
indirectly controlled by key management personnel or of
its family or of any individual that controls or has joint
MEUR 2025 2024
Accounts payable 3.0 3.6
Other current liabilities 1.3 1.3
Accrued payables and deferred income 5.3 6.1
9.6 11.0
Non-Cash changes
1 January
2025 Cash flows
Foreign exchange
movement
31 December
2025
Financial liabilities 83.6 21.5 1.3 106.4
Non-Cash changes
1 January
2024 Cash flows
Foreign exchange
movement
31 December
2024
Financial liabilities 114.7 -30.1 -1.0 83.6
===== SIDA 69 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 69
control or significant influence over the entity. During the
year, the Group has entered into material transactions
with related parties on a commercial basis including the
transactions described below.
At the balance sheet date, the Group had an outstanding
non-current loan receivable on associates and joint
ventures amounting to MEUR 45.9 (MEUR 46.4), of which
MEUR 45.0 (MEUR 45.5) related to the joint venture MLK
and MEUR 0.9 (MEUR 0.9) to associated companies. In
addition, the Group had an outstanding current
receivable of MEUR 4.3 which related to MLK. Interest
income of MEUR 2.1 (MEUR 5.2) arising from the loan
receivable to MLK was recognised in the income
statement during the year.
Note 20 - Average number of employees
Note 21 - Personnel expenses
The amounts in the tables below are calculated according to the accruals concept, in which salaries and other
remuneration refer to expensed amounts.
1 Salaries and other remuneration include long-term variable remuneration of TEUR 2,994 (TEUR 3,390), which is reported on an accrual basis. The
amounts reflect the expense recognised during the year, valued at grant, for the Company’s long-term share-related incentive plans and do not
equal the fair value of the options/awards at the balance sheet date.
Average number of employees per country Total employees
of which
men Total employees
of which
men
Parent Company in Sweden 5 3 6 4
Subsidiaries
France 5 3 2 2
Germany 8 5 6 5
Sweden 22 16 19 12
Switzerland 12 7 12 7
United Kingdom 8 5 8 5
55 36 47 31
Total 60 39 53 35
2025 2024
Board members and Group management Total at year-end
of which
men Total at year-end
of which
men
Parent Company in Sweden
Board members 6 4 5 3
Subsidiaries
Group management 3 2 3 2
Total 9 6 8 5
2025 2024
Expensed remuneration
TEUR
Salaries and other
remuneration¹
Social security
costs
Salaries and other
remuneration¹
Social security
costs
Parent Company in Sweden
Board members 490 68 531 68
Employees 1,193 456 1,281 431
Subsidiaries
Group management 4,092 382 3,563 327
Other employees 5,595 1,518 5,578 1,323
Total 11,370 2,424 10,953 2,149
Of which pension costs 802 726
2025 2024
===== SIDA 70 =====
Financial Statements and Notes
70 Orrön Energy – Annual and Sustainability Report 2025
1 Refers to fixed Board remuneration paid during the year.
2 Refers to fees for membership in Board committees paid during the year.
3 Refers to the Company’s long-term incentive plan. The amounts reflect the cost recognised in 2025, valued at grant, for the share option plan
approved by the 2022 EGM and do not equal the fair value of the options at the balance sheet date.
4 Richard Ollerhead was elected as a Board member at the 2025 AGM, and he declined to receive any Board fees.
5 Aksel Azrac was Board member until 4 May 2023 and did not stand for re-election at the 2023 AGM.
1 Refers to fixed Board remuneration paid during the year.
2 Refers to fees for membership in Board committees paid during the year.
3 Refers to the Company’s long-term incentive plan. The amounts reflect the cost recognised in 2024, valued at grant, for the share option plan
approved by the 2022 EGM and do not equal the fair value of the options at the balance sheet date.
5 C. Ashley Heppenstall was a Board member until 15 May 2024 and did not stand for re-election at the 2024 AGM.
6 Aksel Azrac was a Board member until 4 May 2023 and did not stand for re-election at the 2023 AGM.
Expensed remuneration to Group management
1 Refers to short-term variable remuneration reported on an accrual basis and includes the bonus relative to the performance in 202 5.
2 Other benefits may include, but are not limited to, school fees and health insurance.
3 Refers to the Company’s long-term incentive plans (LTIPs). The amounts reflect the expense recognised during 2025, valued at grant, for the
Company’s long-term share-related incentive plans and do not equal the fair value of the options/awards at the balance sheet date.
4 Comprises two people: CFO Espen Hennie and General Counsel Henrika Frykman.
2025
Expensed remuneration to the Board
TEUR Fee¹ Other fees²
Total excl.
recognised
expense for
share options
Recognised
expense for share
options³
Total
expense
recognised
Board members
Grace Reksten Skaugen 120 10 130 54 184
Peggy Bruzelius 60 10 70 - 70
William Lundin 60 5 65 - 65
Mike Nicholson 60 10 70 - 70
Jakob Thomasen 60 5 65 27 92
Richard Ollerhead⁴ - - - - -
Aksel Azrac⁵ - - - 9 9
Total 360 40 400 90 490
2024
Expensed remuneration to the Board
TEUR Fee¹ Other fees²
Total excl.
recognised
expense for
share options
Recognised
expense for share
options³
Total
expense
recognised
Board members
Grace Reksten Skaugen 120 10 130 78 208
Peggy Bruzelius 60 8 68 - 68
C. Ashley Heppenstall⁵ 30 8 38 - 38
William Lundin 60 5 65 - 65
Mike Nicholson 30 5 35 - 35
Jakob Thomasen 60 5 65 39 104
Aksel Azrac⁶ - - - 13 13
Total 360 41 401 130 531
2025
TEUR
Base
salary
Variable
remuneration¹
Other
benefits²
Pension
fees
Total excl.
recognised
expense for
LTIPs
Recognised
expense for
LTIPs³
Total
expense
recognised
Daniel Fitzgerald,
CEO 491 276 23 71 861 1,040 1,901
Other⁴ 736 418 109 135 1,398 999 2,397
Total 1,227 694 132 206 2,259 2,039 4,298
===== SIDA 71 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 71
1 Refers to short-term variable remuneration reported on an accrual basis and includes the bonus relative to the performance in 2024.
2 Other benefits may include, but are not limited to, school fees and health insurance.
3 Refers to the Company’s long-term incentive plans (LTIPs). The amounts reflect the expense recognised during 2024, valued at grant, for the
Company’s long-term share-related incentive plans and do not equal the fair value of the options/awards at the balance sheet date.
4 Comprises two people: CFO Espen Hennie and General Counsel Henrika Frykman.
Board members
No severance pay agreements are in place for any of the
Company's Board members.
Group management
The pension contribution for Group management is
between 5 and 14 percent of the qualifying income for
pension purposes depending on the age. The Company
provides for 60 percent of the pension contribution and
the employee for the remaining 40 percent. Qualifying
income is defined as annual base salary and short-term
variable remuneration and is capped at approximately
TCHF 907 (TCHF 882). The typical contractual retirement
age for men is 65 years and for women between 64 and
65 years depending on the year of birth.
A mutual termination period of between six months and
twelve months applies between the Company and Group
management, depending on the duration of the
employment with the Company. In addition, severance
terms are incorporated into the employment contracts
for executives that give rise to compensation, up to two
years’ base salary, in the event of termination of
employment due to a change of control of the Company.
The Board of Directors is further authorised, in individual
cases, to approve severance arrangements, in addition
to the notice periods and the severance arrangements in
respect of a change of control of the Company, where
employment is terminated by the Company without
cause, or otherwise in circumstances at the discretion of
the Board. Such severance arrangements may provide
for the payment of up to one year’s base salary.
Severance payments in aggregate (i.e. for notice periods
and severance arrangements) shall be limited to a
maximum of two years’ base salary.
See pages 39–44 of the Corporate Governance report for
further information on the Group’s principles of
remuneration and the Policy on Remuneration for Group
management for 2025.
Note 22 - Long term incentive plans
The Company operates long-term share-related
incentive plans for Group management and other
employees. Share option plans were approved by the
2022 EGM and the 2023 and 2024 AGMs (“Share Option
Plans”), and a performance-based incentive plan was
approved by the 2025 AGM (“LTIP2025”), sharing the
common objective of aligning participants’ interests with
those of shareholders and supporting long-term value
creation. In 2025, the Company implemented, in addition
to the LTIP 2025, a long-term share-related incentive
plan consisting of a unit bonus plan (“UBP 2025”) for
employees not participating in the LTIP 2025.
In the Company’s initial phase of development, the share
price increase that is required for the Share Option Plans
to lead to any payout, was considered to be an
appropriate performance criterion and the best measure
to determine shareholder value creation. At the time, it
was also challenging to find a suitable peer group or
other performance conditions, which would adequately
assess the Company’s performance against the market.
In 2025, the Board considered it appropriate to transition
to a new long-term, performance-based incentive plan,
the LTIP 2025. The primary objectives of the LTIP 2025 are
fully aligned with the previous Share Option Plans, to
ensure continuity in rewarding performance and
commitment, while still ensuring a strong link between
performance and shareholder value.
In order to secure the Company’s obligations under the
Share Options Plans and the LTIP 2025, the Company has
issued 25,610,000 warrants in total under series 2022:2,
2024:1, 2024:2 and 2025:1, as resolved by the 2022 EGM,
the 2024 AGM and the 2025 AGM, respectively.
Additionally, the Company maintains an option to deliver
shares to participants under an equity swap
arrangement with a third party. Under this arrangement,
the third party, acting in its own name, has the right to
acquire and transfer shares, including to the participants,
as resolved by the 2023 AGM.
2024
TEUR
Base
salary
Variable
remuneration¹
Other
benefits²
Pension
fees
Total excl.
recognised
expense for
LTIPs
Recognised
expense for
LTIPs³
Total
expense
recognised
Daniel Fitzgerald,
CEO 444 185 21 68 718 942 1,660
Other⁴ 667 278 102 113 1,160 924 2,084
Total 1,111 463 123 181 1,878 1,866 3,744
===== SIDA 72 =====
Financial Statements and Notes
72 Orrön Energy – Annual and Sustainability Report 2025
Performance-Based Incentive Plan
The 2025 AGM resolved to establish the LTIP 2025 for
members of Group management and a number of key
employees of the Company. The reason for establishing
the LTIP 2025 is to align the interests of Group
management and other key employees with the interests
of the shareholders, and to provide market appropriate
reward reflecting continuity, performance and
commitment. The Board believes that the LTIP 2025 will
provide Orrön Energy with a crucial component to a
competitive total compensation package to attract and
retain executives who are critical to Orrön Energy’s future
success.
Under the LTIP 2025, participants are eligible to receive
shares in the Company, provided they maintain
continuous employment and meet specific performance
conditions over a three-year period. Vesting will occur
over three years with performance conditions measured
during the period between 1 January and 31 March in the
year of award and vesting, respectively. The
performance conditions are based on the Company’s
relative Total Shareholder Return measured against a
peer group of companies with a 75 percent weighting,
and strategic performance conditions tied to the
Company’s long-term strategy with a 25 percent
weighting.
It was also considered that the LTIP 2025, as the Share
Option Plans in the past, is best financed through delivery
of shares allowing the Company to continue to allocate
all available capital towards growth.
Share Option Plan
Group management and other employees
Share Option Plans for Group management and other
employees were approved by the 2022 EGM and the 2023
and 2024 AGMs, all aimed at aligning the interests of
members of Group management and other employees
with those of shareholders while offering competitive,
market-aligned rewards for a growth-focused business.
Designed to emphasise strong shareholder returns, the
Share Option Plans also reflect the Company’s
entrepreneurial and growth-oriented nature. Given that
renewable energy projects require long time to mature
and ultimately crystallise value, the Share Option Plans
have also been designed to incentivise decision making
to support long-term value creation, which is being
reflected in the length of the exercise and vesting
periods.
The Share Option Plans are fully aligned with the interest
of shareholders as any pay-out will require a share price
increase, which at the time of their approvals was
considered to be an appropriate performance criterion
given the Company’s phase of development. The share
price was also considered the best measure to
determine shareholder value creation, as the Share
Option Plans will only deliver value to the extent that
Group management are able to increase the Company’s
valuation. During the initial phase of the Company’s
development, it was challenging to find a suitable peer
group or other performance conditions, which would
adequately assess the Company’s performance against
the market.
Board
The 2022 EGM resolved to approve a one-off long-term
share-related incentive plan for members of the Board in
the form of a share option plan (“Board Share Option
Plan”).
The Company has secured its obligations under the
Board Share Option Plan by entering into an equity swap
arrangement with a third party, whereby the third party
in its own name shall be entitled to acquire and transfer
shares, including to the participants, in accordance with
the plan.
Unit Bonus Plan
The UBP 2025 was established by the Company in 2025
to incentivize employees not participating in the LTIP
2025 to contribute materially to the success and
profitability of the Company for long-term value creation,
and to facilitate the Company’s ambition of attracting
and retaining high calibre personnel. The UBP 2025
provides for an annual grant of units, which entitles
employees to receive shares in the Company upon
vesting. The UBP 2025 has a three-year duration and
vesting is conditional upon the holder of the units
remaining an employee of the Company. The UBP 2025 is
intended to be settled through an existing equity swap
arrangement with a third party and will not lead to any
dilution for existing shareholders, and does not have a
material financial impact on the Company.
===== SIDA 73 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 73
Costs associated with the Long-Term Incentive Plans
The share options under the Share Option Plans and the
portion of the awards granted under the LTIP 2025, which
are subject to the performance conditions based on the
Company’s relative Total Shareholder Return, are
measured at fair value at the date of grant using an
option pricing model. The portion of the awards granted
under the LTIP 2025, which are subject to the strategic
performance condition, and the awards granted under
the UBP 2025, are measured at fair value at the date of
grant. An expense is recognised in the income statement
over the vesting period without revaluation of the value
of the share options and the awards in accordance with
IFRS.
Social costs, which will be due when the share options
and awards are exercised, are calculated on the fair
value of the share options and awards at the balance
sheet date and are recognised in the income statement
over the vesting period.
The amounts in the table below reflect the expense
recognised in the income statement for the Company’s
long-term incentive plans and include the Share Option
Plans, the LTIP 2025 and the UBP 2025 valued at grant and
related social costs, calculated on the fair value of the
share options and the awards. No provision for social
costs has been recognised in 2025 on the Share Option
Plans or on the portion of the LTIP 2025 which is subject to
performance conditions based on the Company’s
relative Total Shareholder Return. A provision for social
costs of TEUR 31 (TEUR –) relative to the awards granted
under the LTIP 2025, which are subject to the strategic
performance condition, and the UBP 2025, has been
recognised in 2025.
Long-term incentive plans - Expense
1 Includes an expense relative to the Board Share Option Plan of TEUR 90 (TEUR 130).
The accumulated effect on equity for the Company’s long-term incentive plans at 31 December 2025 amounted to
MEUR 10.0 (MEUR 6.9).
Number of options/awards 2025 Plan 2024 Plan 2023 Plan 2022 Plan Total
LTIP 2025
Outstanding at the beginning of the year - - - - -
Awarded during the year 4,434,000 - - - 4,434,000
Forfeited during the year - - - - -
Outstanding at the end of the year 4,434,000 - - - 4,434,000
Unit Bonus Plan
Outstanding at the beginning of the year - - - - -
Awarded during the year 496,000 - - - 496,000
Forfeited during the year - - - - -
Outstanding at the end of the year 496,000 - - - 496,000
Employee Share Option Plan
Outstanding at the beginning of the year - 5,285,000 5,979,500 7,921,000 19,185,500
Forfeited during the year - -67,000 -117,000 - -184,000
Outstanding at the end of the year - 5,218,000 5,862,500 7,921,000 19,001,500
Board Share Option Plan -
Outstanding at the beginning of the year - - - 670,000 670,000
Forfeited during the year - - - - -
Outstanding at the end of the year - - - 670,000 670,000
Total outstanding at the end of the year 4,930,000 5,218,000 5,862,500 8,591,000 24,601,500
TEUR
Long-term
Incentive Plans Social costs
Long-term
Incentive Plans Social costs
2022 Plan - Share Option Plan¹ 1,157 - 2,164 -
2023 Plan - Share Option Plan 818 - 835 -
2024 Plan - Share Option Plan 685 - 391 -
2025 Plan - LTIP 2025 299 24 - -
2025 Plan - UBP 2025 35 7 - -
2,994 31 3,390 -
2025 2024
===== SIDA 74 =====
Financial Statements and Notes
74 Orrön Energy – Annual and Sustainability Report 2025
Fair value at grant date of long-term incentive plans
The fair value at grant date for the Share Option Plans and for the portion of the awards granted under the LTIP 2025,
which are subject to a performance condition based on the Company’s relative Total Shareholder Return, has been
determined using the Black-Scholes model. The fair value at grant date for the UBP 2025, and for the portion of the
awards granted under the LTIP 2025, which are subject to strategic performance conditions, have been determined
using the share price at grant date. The model inputs for options and awards granted included:
Long-Term Incentive Plans
1 The fair value has been calculated on the date of grant in line with IFRS and does not correspond to the fair value when the decision was made.
2 The exercise prices for the Employee Share Option Plans have been calculated based on the volume weighted average price as quoted on
Nasdaq Stockholm during the defined pricing period. The exercise price for the Board Share Option Plan corresponds to 120% of the volume
weighted average price during the defined pricing period.
Note 23 - Remuneration to the Group’s Auditors
Note 24 - Subsequent events
In December 2025, the Company entered into an agreement to sell a portfolio of three solar projects with a total
capacity of 234 MW. The total consideration amounts to up to MEUR 14 and includes contingent payments payable
upon the achievement of specified development milestones up to the ready-to-build stage. Closing for the first 93 MW
project occurred in January 2026, with the closing and first milestone payments received in January and February,
respectively, totalling MEUR 1.6.
LTIP 2025 UBP 2025 Board Share
Option Plan
2025 Plan 2025 Plan 2024 Plan 2023 Plan 2022 Plan 2022 Plan
Fair value at grant - IFRS cost¹ 4.00 – 4.45 4.45 4.38 4.78 8.45 7.60
Exercise price (SEK)² – – 7.59 11.78 8.88 10.66
Performance period 1 Jun 2025 – 31
May 2028 – – – – –
Defined pricing period – – 20–24 May 2024 22–26 May 2023 18–22 July 2022 18–22 July 2022
Vesting date 31 May 2028 31 May 2028 31 May 2027 31 May 2026 31 July 2025 31 July 2025
Expiry date – – 31 May 2031 31 May 2030 31 July 2029 31 July 2029
Share price at grant date (SEK) 4.45 4.45 9.21 11.66 15.00 15.00
Expected price volatility of the Company's shares 47% – 35% 35% 35% 35%
Risk free interest rate 1.8% – 2.4% 2.5% 1.8% 1.8%
Vesting period 3 years 3 years 3 years 3 years 3 years 3 years
Employee Share Option Plan
TEUR 2025 2024
Ernst & Young
Audit engagements 327.0 296.4
Audit assignments in addition to the audit engagement 3.2 26.8
Other services - -
330.2 323.2
Remuneration to other auditors 102.2 171.1
Total 432.4 494.3
===== SIDA 75 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 75
Annual Accounts of the Parent Company
Parent Company
The business of the Parent Company is to invest in and
manage operations within the renewable energy sector.
The Parent Company reported a net result of MSEK 1.2
(MSEK -22.6) for the year, which was impacted by a
dividend received from a Group company of MSEK 130
(MSEK 125.3).
General and administration expenses amounted to
MSEK 170.8 (MSEK 187.9), out of which MSEK 77.3
(MSEK 81.9) related to legal fees and other costs incurred
for the defence of the Company and its former
representatives in the Sudan legal case.
Accounting Policies
The financial statements of the Parent Company are
prepared in accordance with accounting policies
generally accepted in Sweden, applying RFR 2 issued by
the Swedish Corporate Reporting Board and the Annual
Accounts Act (1995: 1554). RFR 2 requires the Parent
Company to use similar accounting policies as for the
Group, i.e. IFRS to the extent allowed by RFR 2. The Parent
Company’s accounting policies do not in any material
respect deviate from the Group policies, see Note 1
Accounting policies of the consolidated financial
statements.
===== SIDA 76 =====
Financial Statements and Notes
76 Orrön Energy – Annual and Sustainability Report 2025
Financial statements of the Parent Company
Parent Company Income Statement
Parent Company Comprehensive Income
Statement
MSEK Note 2025 2024
Revenue 43.4 43.8
General and administration expenses -170.8 -187.9
Operating profit/loss -127.4 -144.1
Finance income 1 132.1 125.6
Finance costs 2 -3.5 -4.1
Net financial items 128.6 121.5
Profit/loss before income tax 1.2 -22.6
Income tax 3 - -
Net result 1.2 -22.6
MSEK 2025 2024
Net result 1.2 -22.6
Items that will not be reclassified to profit or loss:
Changes in the fair value of equity investments 0.8 4.0
Total comprehensive income 2.0 -18.6
Attributable to:
Shareholders of the Parent Company 2.0 -18.6
===== SIDA 77 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 77
Parent Company Balance Sheet
MSEK Note 2025 2024
ASSETS
Non-current assets
Shares in subsidiaries 10 3,780.8 3,780.8
Deferred tax assets 436.0 436.0
4,216.8 4,216.8
Current assets
Receivables 4 4.2 6.6
Other financial assets - 4.0
Cash and cash equivalents 106.9 102.2
111.1 112.8
TOTAL ASSETS 4,327.9 4,329.6
EQUITY AND LIABILITIES
Restricted equity
Share capital 3.5 3.5
Statutory reserve 861.3 861.3
864.8 864.8
Unrestricted equity
Other reserves 7,193.2 7,188.7
Retained earnings -3,818.1 -3,796.2
Net result 1.2 -22.6
3,376.3 3,369.8
TOTAL EQUITY 4,241.1 4,234.6
Non-current liabilities
Interest bearing loans and borrowings 51.0 47.3
Provisions 0.1 -
51.1 47.3
Current liabilities
Other liabilities 5 35.7 47.7
35.7 47.7
TOTAL LIABILITIES 86.8 95.0
TOTAL EQUITY AND LIABILITIES 4,327.9 4,329.6
===== SIDA 78 =====
Financial Statements and Notes
78 Orrön Energy – Annual and Sustainability Report 2025
Parent Company Cash Flow Statement
MSEK Note 2025 2024
Cash flow from operating activities
Net result 1.2 -22.6
Adjustment for items not included in the cash flow 6 -122.4 -115.6
Changes in working capital:
Changes in current assets 1.8 -0.3
Changes in current liabilities -14.4 9.4
Total cash flow from operating activities -133.8 -129.1
Cash flow from investing activities
Result from equity investment 4.8 4.0
Total cash flow from investing activities 4.8 4.0
Cash flow from financing activities
Drawdown of loan 133.7 115.8
Total cash flow from financing activities 133.7 115.8
Change in cash and cash equivalents 4.7 -9.3
Cash and cash equivalents at the beginning of the year 102.2 111.5
Currency exchange difference in cash and cash equivalents - -
Cash and cash equivalents at the end of the year 106.9 102.2
===== SIDA 79 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 79
Parent Company Statement of Changes in
Equity
MEUR
Share
capital
Statutory
reserve
Other
reserves
Retained
earnings
Total
equity
1 January 2024 3.5 861.3 7,182.7 -3,804.3 4,243.2
Comprehensive income
Net result - - - -22.6 -22.6
Other comprehensive income - - - 4.0 4.0
Total comprehensive income - - - -18.6 -18.6
Transactions with owners
Share based payments - - 6.0 - 6.0
Other - - - 4.0 4.0
Total transactions with owners - - 6.0 4.0 10.0
31 December 2024 3.5 861.3 7,188.7 -3,818.9 4,234.6
Comprehensive income
Net result - - - 1.2 1.2
Other comprehensive income - - - 0.8 0.8
Total comprehensive income - - - 2.0 2.0
Transactions with owners
Share based payments - - 4.5 - 4.5
Total transactions with owners - - 4.5 - 4.5
31 December 2025 3.5 861.3 7,193.2 -3,816.9 4,241.1
Unrestricted equityRestricted equity
===== SIDA 80 =====
Financial Statements and Notes
80 Orrön Energy – Annual and Sustainability Report 2025
Notes to the financial statements of the Parent
Company
Note 1 - Finance Income
Note 2 - Finance costs
Note 3 - Income tax
A deferred tax asset amounting to MSEK 436.0 relates to tax losses carried forward, which are expected to be used
against future taxable profits. No further deferred tax income has been recognised since 2024.
Note 4 - Receivables
Note 5 - Other liabilities
MSEK 2025 2024
Dividend 130.0 125.3
Interest income 0.0 -
Foreign exchange gain 1.5 0.1
Other 0.6 0.2
132.1 125.6
MSEK 2025 2024
Foreign exchange loss - -
Interest expense 3.0 4.0
Other 0.5 0.1
3.5 4.1
MSEK 2025 2024
Net result before tax 1.2 -22.6
Tax calculated at the corporate tax rate in Sweden 20.6% (20.6%) -0.3 4.7
Tax effect of received dividend 26.8 25.8
Tax effect of expenses non-deductible for tax purposes -0.2 -0.4
Increase unrecorded tax losses -26.3 -30.0
- -
MSEK 2025 2024
Due from Group companies 0.0 2.6
VAT receivable 2.1 0.6
Prepaid expenses and accrued income 1.3 1.0
Other 0.8 2.4
4.2 6.6
MSEK 2025 2024
Due to Group companies 18.0 26.4
Accounts payables 8.3 11.8
Accrued payables and deferred income 8.2 7.2
Other 1.2 2.3
35.7 47.7
===== SIDA 81 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 81
Note 6 - Supplementary information to the Statement of Cash Flows
The Statement of Cash Flows is prepared in accordance with the indirect method.
Note 7 - Remuneration to the Auditor
There has been no remuneration to any auditor other than Ernst & Young.
Note 8 - Proposed disposition of
unappropriated earnings
The 2026 Annual General Meeting has an unrestricted
equity at its disposal of SEK 3,376,374,277 including the
net profit for the year of SEK 1,240,164. The Board of
Directors proposes that the unrestricted equity of the
Parent Company of SEK 3,376,374,277 , including the net
profit for the year of SEK 1,240,164 be brought forward, and
that no dividend shall be paid for the financial year.
Note 9 - Pledged assets
Pledged assets of MSEK 3,780.8 (MSEK 3,780.8) relate to
the carrying value of the pledge of the shares in respect
of the Group's credit facility entered into by the wholly-
owned subsidiary Orrön Energy Finance AB, see Note 14
Interest bearing loans and borrowings of the financial
statements of the Group.
Note 10 - Shares in subsidiaries
The book value of the directly owned company Orrön Energy Holding AB amounts to MSEK 3,780.8 (MSEK 3,780.8) at
year end.
Registration
number Registered office
Total number of
shares issued
Percentage
controlled
Nominal
value per
share
Directly owned
Orrön Energy Holding AB 559349-1730 Stockholm, Sweden 250 100 SEK 100.00
Indirectly owned
Orrön Energy Finance AB 559349-1748 Stockholm, Sweden 250 100 SEK 100.00
Karskruv Vind AB 559211-6106 Stockholm, Sweden 500 100 EUR 9.88
Karskruv Nät AB 559036-7289 Stockholm, Sweden 1,000 100 SEK 100.00
Orrön Energy SA 660.0.330.999-0 Collonge-Bellerive,
Switzerland 1,000 100 CHF 100.00
Orrön Energy Sweden AB 556453-2819 Gotland, Sweden 7,114,450 100 SEK 10.00
Isgrannatorp Drift AB 556787-6833 Gotland, Sweden 1,020 67 SEK 100.00
Saba Wind OY 1868533-5 Ekenäs, Finland 8,000 100 SEK 278.00
Näsvind AB 556855-2565 Gotland, Sweden 450,000 52 SEK 1.00
Ownpower Gotland AB 556676-4931 Gotland, Sweden 450,470 81 SEK 18.00
KlasBod Vindkraft AB 556748-7284 Gotland, Sweden 10,973 77 SEK 600.00
Skålsparken AB 556882-7488 Gotland, Sweden 100,000 64 SEK 1.00
Österudd och Näs Annex AB 556798-4587 Gotland, Sweden 9,900 64 SEK 2,000.00
Vindbolaget i När AB 556947-3373 Gotland, Sweden 100,000 54 SEK 1.00
Markbolaget i När AB 559238-7327 Gotland, Sweden 250 54 SEK 10.00
Stugyl AB 556756-4652 Gotland, Sweden 23,500 81 SEK 10.00
Näsudden Väst Adm. AB 556655-4803 Gotland, Sweden 305,328 74 SEK 1.00
Storugns III AB 556868-2370 Gotland, Sweden 500 60 SEK 100.00
Orrön Energy Greenfield AB 559398-0518 Stockholm, Sweden 1,892 70 SEK 25.00
MSEK 2025 2024
Adjustments for items not included in the Cash Flows:
Depreciation and amortisation - 0.1
Long-term incentive plans 4.6 6.0
Interest expense 3.0 3.6
Result from participation in group companies -130.0 -125.3
-122.4 -115.6
MSEK 2025 2024
Ernst & Young
Audit engagements 2.0 1.8
Audit assignments in addition to the audit engagement - 0.1
2.0 1.9
===== SIDA 82 =====
Financial Statements and Notes
82 Orrön Energy – Annual and Sustainability Report 2025
Registration
number Registered office
Total number of
shares issued
Percentage
controlled
Nominal
value per
share
Orrön Energy Development Ltd. 14737332 Northampton, UK 1,008 70 GBP 1.00
Alverdiscott 10 Renewables Holdco Ltd. 14604716 Northampton, UK 1,000 70 GBP 1.00
Alverdiscott 10 Renewables Ltd. 14605063 Northampton, UK 100 70 GBP 1.00
Amersham 10 Renewables Ltd. 15122671 Northampton, UK 1,000 70 GBP 1.00
Appleford 2 Renewables Ltd. 14915058 Northampton, UK 1,000 70 GBP 1.00
Appleford 7 Renewables Ltd. 14914378 Northampton, UK 1,000 70 GBP 1.00
Basingstoke East 2 Renewables Ltd. 14914367 Northampton, UK 1,000 70 GBP 1.00
Basingstoke East 7 Renewables Ltd. 14914353 Northampton, UK 1,000 70 GBP 1.00
Biggleswade 10 Renewables Ltd. 15128288 Northampton, UK 1,000 70 GBP 1.00
Braintree 10 Renewables Ltd. 15125518 Northampton, UK 1,000 70 GBP 1.00
Bramley 2 Renewables Ltd. 14915202 Northampton, UK 1,000 70 GBP 1.00
Bramley 7 Renewables Ltd. 14915277 Northampton, UK 1,000 70 GBP 1.00
Bushbury 10 Renewables Ltd. 15125508 Northampton, UK 1,000 70 GBP 1.00
Canterbury North 10 Renewables Ltd. 15125499 Northampton, UK 1,000 70 GBP 1.00
Coddington 10 Renewables Ltd. 14914945 Northampton, UK 1,000 70 GBP 1.00
Coryton 10 Renewables Ltd. 15125478 Northampton, UK 1,000 70 GBP 1.00
Cowley 2 Renewables Ltd. 14914340 Northampton, UK 1,000 70 GBP 1.00
Cowley 7 Renewables Ltd. 14914334 Northampton, UK 1,000 70 GBP 1.00
Dragon Green 2 Renewables Ltd. 14914407 Northampton, UK 1,000 70 GBP 1.00
Dragon Green 7 Renewables Ltd. 14913700 Northampton, UK 1,000 70 GBP 1.00
Hertfordshire Data Centre
Developments Ltd. 16807685 Northampton, UK 100 59.5 GBP 1.00
Kegworth 10 Renewables Ltd. 14914243 Northampton, UK 1000 70 GBP 1.00
Langage 10 Renewables Holdco Ltd. 14604675 Northampton, UK 1,000 70 GBP 1.00
Langage 10 Renewables Ltd. 14605013 Northampton, UK 100 70 GBP 1.00
Leighton Buzzard 10 Renewables Ltd. 15128338 Northampton, UK 1,000 70 GBP 1.00
Little Harrowden 10 Renewables Ltd. 15128323 Northampton, UK 1,000 70 GBP 1.00
Ninfield 10 Renewables Ltd. 15125441 Northampton, UK 1,000 70 GBP 1.00
Rye House 10 Renewables Ltd. 15125422 Northampton, UK 1,000 70 GBP 1.00
Sellindge West 10 Renewables Ltd. 15125694 Northampton, UK 1,000 70 GBP 1.00
Stoke Bardolph 10 Renewables Ltd. 15128170 Northampton, UK 1,000 70 GBP 1.00
Waltham Cross 2 Renewables Ltd. 14914290 Northampton, UK 1,000 70 GBP 1.00
Waltham Cross 7 Renewables Ltd. 14914262 Northampton, UK 1,000 70 GBP 1.00
West Haddon 10 Renewables Ltd. 15123046 Northampton, UK 1,000 70 GBP 1.00
Wymondley 10 Renewables Holdco Ltd. 14604699 Northampton, UK 1,000 70 GBP 1.00
Wymondley 10 Renewables Ltd. 14605051 Northampton, UK 100 70 GBP 1.00
Orrön Energiprojekte GmbH HRB 131605 Düsseldorf, Germany 25,000 70 EUR 1.00
Orrön Kastorf Agri-PV Beteiligungs
GmbH HRB 137137 Düsseldorf, Germany 25,000 70 EUR 1.00
Orron Kastorf Agri-PV GmbH & Co.KG HRA54027 Düsseldorf, Germany – 70 –
Orrön Manschnow Agri-PV GmbH HRB 799928 Düsseldorf, Germany 25,000 70 EUR 1.00
Orrön Stockhausen BESS GmbH HRB 799598 Düsseldorf, Germany 25,000 70 EUR 1.00
Orrön Jävenitz Agri-PV GmbH HRB 799139 Düsseldorf, Germany 25,000 70 EUR 1.00
Orrön Klein Ernsthof BESS GmbH HRB 800574 Düsseldorf, Germany 25,000 70 EUR 1.00
Orrön Trebenow Agri-PV GmbH HRB 800409 Düsseldorf, Germany 25,000 70 EUR 1.00
Orrön Mühlenhof BESS GmbH HRB 799919 Düsseldorf, Germany 25,000 70 EUR 1.00
Orrön Eula BESS GmbH HRB 799866 Düsseldorf, Germany 25,000 70 EUR 1.00
Orrön Klein Teetzleben HRB 800180 Düsseldorf, Germany 25,000 70 EUR 1.00
Orrön Gammelin BESS GmbH HRB 799978 Düsseldorf, Germany 25,000 70 EUR 1.00
Orrön Rohrsheim Agri-PV GmbH HRB 800177 Düsseldorf, Germany 25,000 70 EUR 1.00
Orrön Energy Développement France SAS 951 006 154 Paris, France 1,655,021 70 EUR 1.00
Orrön Energy Finland Holding AB 559398-0542 Stockholm, Sweden 1,000 100 SEK 25.00
Orrön Energy Greenfield Finland Holding Oy 3363476-3 Mariehamn, Finland 2,500 100 EUR 0.00
Orrön Energy Finland Oy 3299865-3 Mariehamn, Finland 2,500 100 EUR 0.00
Ruohoninenmäki Renewables Oy 3363479-8 Mariehamn, Finland 2,500 100 EUR 0.00
Pökkiperä Renewables Oy 3363477-1 Mariehamn, Finland 2,500 100 EUR 0.00
Honkamäki Renewables Oy 3363475-5 Mariehamn, Finland 2,500 100 EUR 0.00
Nuolisalonneva Renewables Oy 3363474-7 Mariehamn, Finland 2,500 100 EUR 0.00
LRL Bolag Ltd. 656565-4 Vancouver, Canada 55,855,414 100 CAD 1.00
OE Netherlands I BV and OE Netherlands II BV were liquidated during 2025. Orrön Hohenholz Agri-PV GmbH was sold during 2025.
===== SIDA 83 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 83
Board Assurance
As at 27 February 2026, the Board of Directors and the CEO of Orrön Energy AB have adopted this annual and
sustainability report for the financial year ended 31 December 2025.
Board Assurance
The Board of Directors and the CEO certify that the annual report for the Parent Company has been prepared in
accordance with generally accepted accounting principles in Sweden and that the consolidated accounts have been
prepared in accordance with IFRS as adopted by the EU and give a true and fair view of the financial position and profit
of the Company and the Group and provides a fair review of the performance of the Group’s and Parent Company’s
business, and describes the principal risks and uncertainties that the Company and the companies in the Group face.
The annual and sustainability report was completed on 27 February 2026.
The annual and sustainability report was signed by all on 27 February 2026.
Orrön Energy AB (publ) Reg. Nr. 556610-8055
Grace Reksten Skaugen
Chair
Peggy Bruzelius
Board Member
William Lundin
Board Member
Mike Nicholson
Board Member
Richard Ollerhead
Board Member
Jakob Thomasen
Board Member
Daniel Fitzgerald
CEO
Our audit report was issued on 5 March 2026
Anders Kriström
Authorised Public Accountant
Lead Partner
===== SIDA 84 =====
Financial Statements and Notes
84 Orrön Energy – Annual and Sustainability Report 2025
Auditor’s Report
To the general meeting of the shareholders of Orrön Energy AB (publ), corporate identity number 556610-8055
Report on the annual accounts and
consolidated accounts
Opinions
We have audited the annual accounts and
consolidated accounts of Orrön Energy AB (publ)
except for the corporate governance statement on
pages 31-44 and the statutory sustainability report on
pages 15-26 for the year 2025. The annual accounts
and consolidated accounts of the company are
included on pages 7-83 in this document.
In our opinion, the annual accounts have been
prepared in accordance with the Annual Accounts Act
and present fairly, in all material respects, the financial
position of the parent company as of 31 December 2025
and its financial performance and cash flow for the
year then ended in accordance with the Annual
Accounts Act. The consolidated accounts have been
prepared in accordance with the Annual Accounts Act
and present fairly, in all material respects, the financial
position of the group as of 31 December 2025 and their
financial performance and cash flow for the year then
ended in accordance with IFRS Accounting Standards,
as adopted by the EU, and the Annual Accounts Act. Our
opinions do not cover the corporate governance
statement on pages 31-44 and the statutory
sustainability report on pages 15-26. The statutory
administration report is consistent with the other parts
of the annual accounts and consolidated accounts.
We therefore recommend that the general meeting of
shareholders adopts the income statement and
balance sheet for the parent company and the group.
Our opinions in this report on the annual accounts and
consolidated accounts are consistent with the content
of the additional report that has been submitted to the
parent company's audit committee in accordance with
the Audit Regulation (537/2014) Article 11.
Basis for Opinions
We conducted our audit in accordance with
International Standards on Auditing (ISA) and generally
accepted auditing standards in Sweden. Our
responsibilities under those standards are further
described in the Auditor’s Responsibilities section. We
are independent of the parent company and the group
in accordance with professional ethics for accountants
in Sweden and have otherwise fulfilled our ethical
responsibilities in accordance with these requirements.
This includes that, based on the best of our knowledge
and belief, no prohibited services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided to
the audited company or, where applicable, its parent
company or its controlled companies within the EU.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinions.
Key Audit Matters
Key audit matters of the audit are those matters that, in
our professional judgment, were of most significance in
our audit of the annual accounts and consolidated
accounts of the current period. These matters were
addressed in the context of our audit of, and in forming
our opinion thereon, the annual accounts and
consolidated accounts as a whole, but we do not
provide a separate opinion on these matters. For each
matter below, our description of how our audit
addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the financial
statements section of our report, including in relation to
these matters. Accordingly, our audit included the
performance of procedures designed to respond to our
assessment of the risks of material misstatement of the
financial statements. The results of our audit
procedures, including the procedures performed to
address the matters below, provide the basis for our
audit opinion on the accompanying financial
statements.
===== SIDA 85 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 85
Ongoing legal case regarding alleged violation against international law in Sudan
Description How our audit addressed this key audit matter
In June 2010, the Swedish Prosecution Authority began a
preliminary investigation into alleged complicity in
violations of international humanitarian law in Sudan
during 1997–2003. On 11 November 2021, the Swedish
Prosecution Authority brought criminal charges against
the former Chairman of the Board and a former Director
in relation to past operations in Sudan from 1999–2003
and 2000–2003, respectively. The charges also included
claims against the Company for a corporate fine of 3
MSEK and forfeiture of economic benefits of 2 381 MSEK
which according to the Swedish Prosecution Authority
represents the value of the gain of SEK 720 MSEK that the
Company made on the sale of the business in 2003. Any
potential corporate fine or forfeiture could only be
imposed after a conviction in a trial. The trial started on
5th September 2023 and is expected to end in 2026. The
company disclose this matter as a contingent liability.
We believe that the presentation and disclosures in the
financial statements regarding the legal case as a
contingent liability constitute a key audit matter in the
audit. This is in respect to the complexity of the
prosecution, extent of the claim and the fact that there is
no case law from similarly settled court cases in
Sweden.
For information see the directors report page 29 and
note 18.
We have taken this key audit matter into account in the
audit through audit procedures consisting, inter alia, of:
- We have conducted meetings with the
company's General Counsel and reviewed the
internal documented positions regarding the
legal case.
- We have received and reviewed external legal
letters from the firms representing the
company and its former senior executives.
- We have reviewed the disclosures made in the
annual report regarding the ongoing legal
case.
Valuation of deferred tax asset
Description How our audit addressed this key audit matter
As per December 31, 2025, the deferred tax asset
amounts to MSEK 436 and is based on the estimated
accumulated tax losses carried forward for Orrön Energy
AB that could be utilized in the future multiplied by a tax
rate of 20,6 %. There has not been any change made to
the balance compared to prior year. There are further
potential losses carry forward amounting to MSEK 402
with a potential tax effect of MSEK 82 that has not been
capitalized as deferred tax asset as of year end 2025.
A deferred tax asset can only be included in the balance
sheet if there is enough expected future taxable income
to offset the tax effects. The group prepares a forecast
annually to assess future taxable income against
capitalized losses carried forward. Consideration is
given to both external factors such as assessed
electricity prices, expected capacity from the electricity-
producing facilities as well as internal factors such as
deficits in companies with group contribution
restrictions and expected costs for running the business.
The valuation is based on assumptions, which makes it
a complex area of our audit. As a result of the
uncertainties that the assumptions include and the
significant effects that changes in the assumptions
could have in the financial statements, we consider this
area to be a key audit matter in our audit.
For information see note 7 (group) and note 3 (parent
company).
We have taken this key audit matter into account in the
audit through audit procedures consisting, inter alia, of:
- Mapped and evaluated the Group's valuation
process
- Reviewed and analyzed the parameters and
assumptions in the valuation model and
evaluated the probability of future assumptions
against internal and external sources of
information
- Engaged valuation experts with appropriate
skills in the team when performing our review
- Examined whether there were any
implemented or future changes in the tax
regulations in Sweden that could affect the
possibility of utilizing the losses, and whether
these were considered in accordance with
generally accepted accounting principles
We have reviewed the information provided in the
annual report and consolidated accounts.
===== SIDA 86 =====
Financial Statements and Notes
86 Orrön Energy – Annual and Sustainability Report 2025
Other Information than the annual accounts and
consolidated accounts
This document also contains other information than the
annual accounts and consolidated accounts and is
found on pages 1-8, 15-26 och 31-44. The other
information also includes the remuneration report and
were obtained before the date of this auditor’s report.
The Board of Directors and the Managing Director are
responsible for this other information.
Our opinion on the annual accounts and consolidated
accounts does not cover this other information and we
do not express any form of assurance conclusion
regarding this other information.
In connection with our audit of the annual accounts and
consolidated accounts, our responsibility is to read the
information identified above and consider whether the
information is materially inconsistent with the annual
accounts and consolidated accounts. In this procedure
we also take into account our knowledge otherwise
obtained in the audit and assess whether the information
otherwise appears to be materially misstated.
If we, based on the work performed concerning this
information, conclude that there is a material
misstatement of this other information, we are required
to report that fact. We have nothing to report in this
regard.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors and the Managing Director are
responsible for the preparation of the annual accounts
and consolidated accounts and that they give a fair
presentation in accordance with the Annual Accounts
Act and, concerning the consolidated accounts, in
accordance with IFRS Accounting Standards as adopted
by the EU. The Board of Directors and the Managing
Director are also responsible for such internal control as
they determine is necessary to enable the preparation of
annual accounts and consolidated accounts that are
free from material misstatement, whether due to fraud or
error.
In preparing the annual accounts and consolidated
accounts, The Board of Directors and the Managing
Director are responsible for the assessment of the
company’s and the group’s ability to continue as a going
concern. They disclose, as applicable, matters related to
going concern and using the going concern basis of
accounting. The going concern basis of accounting is
however not applied if the Board of Directors and the
Managing Director intends to liquidate the company, to
cease operations, or has no realistic alternative but to do
so.
The Audit Committee shall, without prejudice to the
Board of Director’s responsibilities and tasks in general,
among other things oversee the company’s financial
reporting process.
Report on other legal and regulatory
requirements
Report on the audit of the administration and the
proposed appropriations of the company’s profit or loss
Opinions
In addition to our audit of the annual accounts and
consolidated accounts, we have also audited the
administration of the Board of Directors and the
Managing Director of Orrön Energy AB (publ) for the year
2025 and the proposed appropriations of the company’s
profit or loss.
We recommend to the general meeting of shareholders
that the profit be appropriated in accordance with the
proposal in the statutory administration report and that
the members of the Board of Directors and the Managing
Director be discharged from liability for the financial year.
Basis for opinions
We conducted the audit in accordance with generally
accepted auditing standards in Sweden. Our
responsibilities under those standards are further
described in the Auditor’s Responsibilities section. We are
independent of the parent company and the group in
accordance with professional ethics for accountants in
Sweden and have otherwise fulfilled our ethical
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinions.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors is responsible for the proposal for
appropriations of the company’s profit or loss. At the
proposal of a dividend, this includes an assessment of
whether the dividend is justifiable considering the
requirements which the company's and the group’s type
of operations, size and risks place on the size of the
parent company's and the group’s equity, consolidation
requirements, liquidity and position in general.
The Board of Directors is responsible for the company’s
organization and the administration of the company’s
affairs. This includes among other things continuous
assessment of the company’s and the group’s financial
situation and ensuring that the company's organization
is designed so that the accounting, management of
assets and the company’s financial affairs otherwise are
controlled in a reassuring manner. The Managing
Director shall manage the ongoing administration
according to the Board of Directors’ guidelines and
instructions and among other matters take measures
===== SIDA 87 =====
Financial Statements and Notes
Orrön Energy – Annual and Sustainability Report 2025 87
that are necessary to fulfill the company’s accounting in
accordance with law and handle the management of
assets in a reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the administration,
and thereby our opinion about discharge from liability, is
to obtain audit evidence to assess with a reasonable
degree of assurance whether any member of the Board
of Directors or the Managing Director in any material
respect:
► has undertaken any action or been guilty of any
omission which can give rise to liability to the
company, or
► in any other way has acted in contravention of the
Companies Act, the Annual Accounts Act or the
Articles of Association.
Our objective concerning the audit of the proposed
appropriations of the company’s profit or loss, and
thereby our opinion about this, is to assess with
reasonable degree of assurance whether the proposal is
in accordance with the Companies Act.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with generally accepted auditing standards in Sweden
will always detect actions or omissions that can give rise
to liability to the company, or that the proposed
appropriations of the company’s profit or loss are not in
accordance with the Companies Act.
A further description of our responsibilities for the audit of
the administration is located at the Swedish Inspectorate
of Auditors website. This description forms part of our
auditor’s report.
The auditor’s examination of the ESEF report
Opinion
In addition to our audit of the annual accounts and
consolidated accounts, we have also examined that the
Board of Directors and the Managing Director have
prepared the annual accounts and consolidated
accounts in a format that enables uniform electronic
reporting (the Esef report) pursuant to Chapter 16,
Section 4(a) of the Swedish Securities Market Act
(2007:528) for Orrön Energy AB (publ) for the financial
year 2025.
Our examination and our opinion relate only to the
statutory requirements.
In our opinion, the Esef report has been prepared in a
format that, in all material respects, enables uniform
electronic reporting.
Basis for opinion
We have performed the examination in accordance with
FAR’s recommendation RevR 18 Examination of the ESEF
report. Our responsibility under this recommendation is
described in more detail in the Auditors’ responsibility
section. We are independent of Orrön Energy AB (publ) in
accordance with professional ethics for accountants in
Sweden and have otherwise fulfilled our ethical
responsibilities in accordance with these requirements.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors and the Managing Director are
responsible for the preparation of the Esef report in
accordance with Chapter 16, Section 4(a) of the Swedish
Securities Market Act (2007:528), and for such internal
control that the Board of Directors and the Managing
Director determine is necessary to prepare the Esef
report without material misstatements, whether due to
fraud or error.
Auditor’s responsibility
Our responsibility is to obtain reasonable assurance
whether the Esef report is in all material respects
prepared in a format that meets the requirements of
Chapter 16, Section 4(a) of the Swedish Securities Market
Act (2007:528), based on the procedures performed.
RevR 18 requires us to plan and execute procedures to
achieve reasonable assurance that the Esef report is
prepared in a format that meets these requirements.
Reasonable assurance is a high level of assurance, but it
is not a guarantee that an engagement carried out
according to RevR 18 and generally accepted auditing
standards in Sweden will always detect a material
misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if,
individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users
taken on the basis of the Esef report.
The audit firm applies ISQM 1 Quality Management for
Firms that Perform Audits or Reviews of Financial
Statements, or other Assurance or Related Services
Engagements which requires the firm to design,
implement and operate a system of quality
management, including policies and procedures
regarding compliance with professional ethical
requirements, professional standards and applicable
legal and regulatory requirements.
The examination involves obtaining evidence, through
various procedures, that the Esef report has been
prepared in a format that enables uniform electronic
reporting of the annual and consolidated accounts. The
procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material
misstatement in the report, whether due to fraud or error.
In carrying out this risk assessment, and in order to
design audit procedures that are appropriate in the
circumstances, the auditor considers those elements of
===== SIDA 88 =====
Financial Statements and Notes
88 Orrön Energy – Annual and Sustainability Report 2025
internal control that are relevant to the preparation of
the Esef report by the Board of Directors and the
Managing Director, but not for the purpose of expressing
an opinion on the effectiveness of those internal controls.
The examination also includes an evaluation of the
appropriateness and reasonableness of assumptions
made by the Board of Directors and the Managing
Director.
The procedures mainly include a validation that the Esef
report has been prepared in a valid XHTML format and a
reconciliation of the Esef report with the audited annual
accounts and consolidated accounts.
Furthermore, the procedures also include an assessment
of whether the consolidated statement of financial
performance, financial position, changes in equity, cash
flow and disclosures in the Esef report have been marked
with iXBRL in accordance with what follows from the Esef
regulation.
The auditor’s examination of the corporate
governance statement
The Board of Directors is responsible for that the
corporate governance statement on pages 31-44 has
been prepared in accordance with the Annual Accounts
Act.
Our examination of the corporate governance statement
is conducted in accordance with FAR´s standard RevR 16
The auditor´s examination of the corporate governance
statement. This means that our examination of the
corporate governance statement is different and
substantially less in scope than an audit conducted in
accordance with International Standards on Auditing
and generally accepted auditing standards in Sweden.
We believe that the examination has provided us with
sufficient basis for our opinions.
A corporate governance statement has been prepared.
Disclosures in accordance with chapter 6 section 6 the
second paragraph points 2-6 of the Annual Accounts Act
and chapter 7 section 31 the second paragraph the same
law are consistent with the other parts of the annual
accounts and consolidated accounts and are in
accordance with the Annual Accounts Act.
Ernst & Young AB, Box 7850, 103 99 Stockholm, was
appointed auditor of Orrön Energy AB (publ) by the
general meeting of shareholders on the 5 May 2025 and
has been the company’s auditor since 2020.
Stockholm, 5 March 2026
Ernst & Young AB
Anders Kriström
Authorized Public Accountant
===== SIDA 89 =====
Additional information
Orrön Energy – Annual and Sustainability Report 2025 89
Key Financial Data
The alternative performance measures presented and
disclosed in this report are used internally by
management in conjunction with IFRS measures to
measure performance and make decisions regarding
the future direction of the business. The Group believes
that these alternative performance measures, when
provided in combination with reported IFRS measures,
provide helpful supplementary information for investors.
In addition to the consolidated financial reporting in line
with IFRS, the Group provides proportionate financial
reporting, which forms part of the alternative
performance measures the Group presents.
Proportionate reporting is aligned with the Group’s
internal management reporting, analysis and decision
making.
Proportionate financials represent Orrön Energy’s
proportionate share of all the entities in which the Group
holds an ownership. This is different to the consolidated
financial reporting under IFRS, where the results from
entities in which the Group holds an ownership of 50
percent or less are not fully consolidated but instead
reported on one line, as share of result in joint ventures.
All entities, in which the Group holds an ownership of
more than 50 percent are fully consolidated in the
financial reporting presented under IFRS. Proportionate
financials are highlighted in grey in this report.
Reconciliations of relevant alternative performance
measures are provided on page 91. Definitions of the
performance measures are provided on page 93.
Additional information
===== SIDA 90 =====
Additional information
90 Orrön Energy – Annual and Sustainability Report 2025
Financial data
1 Share price at period end in EUR is calculated based on quoted share price in SEK and applicable SEK/EUR exchange rate at per iod end.
MEUR 2025 2024
Consolidated financials
Revenue from power generation 24.9 25.7
Revenue from project sales 4.0 -
EBITDA -10.3 -1.6
Operating profit (EBIT) -27.2 -17.5
Net result -26.3 -13.3
Net debt 90.5 66.6
Proportionate financials
Power generation – GWh 800 907
Average price achieved per MWh – EUR 36 34
Operating expenses per MWh – EUR 24 17
Revenue from power generation 28.6 30.7
Revenue from project sales 4.0 -
Operating expenses -19.0 -15.3
EBITDA -4.5 7.0
Operating profit (EBIT) -25.0 -12.9
Net debt 89.1 65.0
Data per share
EUR
Earnings per share -0.09 -0.05
Earnings per share – diluted -0.09 -0.05
EBITDA per share -0.04 -0.01
EBITDA per share – diluted -0.03 -0.01
Number of shares issued at period end 285,905,187 285,905,187
Number of shares in circulation at period end 285,905,187 285,905,187
Weighted average number of shares for the period 285,905,187 285,918,085
Weighted average number of shares for the period – diluted 300,557,979 293,520,419
Share price
Share price at period end in SEK 4.61 7.11
Share price at period end in EUR¹ 0.43 0.62
Key ratios
Return on equity – % -8 -4
Return on capital employed – % -6 -4
Equity ratio – % 71 76
===== SIDA 91 =====
Additional information
Orrön Energy – Annual and Sustainability Report 2025 91
Alternative Performance Measures
EBITDA – Consolidated financials
Net debt – Consolidated financials
EBITDA – Proportionate financials
Net debt – Proportionate financials
Bridge from proportionate to consolidated financials
1 Residual ownership interests share of the proportionate financials in fully consolidated subsidiaries where Orrön Energy does not have 100
percent economic interest.
2 Elimination of proportionate financials from equity consolidated entities adjusted for Orrön Energy’s share of net result.
MEUR 2025 2024
Operating profit/loss (EBIT) -27.2 -17.5
Add: depreciation 16.9 15.9
-10.3 -1.6
MEUR 2025 2024
Interest bearing loans and borrowings – Non-Current 106.4 83.6
Interest bearing loans and borrowings – Current - 0.6
Less: Cash and cash equivalents -15.9 -17.6
90.5 66.6
MEUR 2025 2024
Operating profit/loss (EBIT) -25.0 -12.9
Add: depreciation 20.5 19.9
-4.5 7.0
MEUR 2025 2024
Net debt – Consolidated financials 90.5 66.6
Less: Cash and cash equivalents of Associates and joint ventures -0.5 -0.4
Add: Interest bearing loans and borrowings of Associates and joint ventures -0.9 -1.2
89.1 65.0
2025
MEUR
Proportionate
financials
Residual ownership
in subsiaries¹
Elimination of equity
entities²
Consolidated
financials
Revenue from power generation 28.6 1.3 -5.0 24.9
Revenue from project sales 4.0 - - 4.0
Other income 0.9 - -0.3 0.6
Operating expenses -19.0 -0.8 4.3 -15.5
Cost of sales of projects under
development -1.1 - - -1.1
General and administration expenses -17.9 -0.2 0.2 -17.9
Share in result of associates and joint
ventures - - -5.3 -5.3
EBITDA -4.5 0.3 -6.1 -10.3
Depreciation -20.5 -0.2 3.8 -16.9
Operating profit (EBIT) -25.0 0.1 -2.3 -27.2
Net financial items -4.5 -0.1 2.3 -2.3
Tax 3.2 - - 3.2
Net result -26.3 - - -26.3
Attributable to:
Shareholders of the Parent Company -26.3 - - -26.3
Non-controlling interest - - - -
===== SIDA 92 =====
Additional information
92 Orrön Energy – Annual and Sustainability Report 2025
Bridge from proportionate to consolidated financials
1 Residual ownership interests share of the proportionate financials in fully consolidated subsidiaries where Orrön Energy does not have 100
percent economic interest.
2 Elimination of proportionate financials from equity consolidated entities adjusted for Orrön Energy’s share of net result.
2024
MEUR
Proportionate
financials
Residual ownership
in subsiaries¹
Elimination of equity
entities²
Consolidated
financials
Revenue from power generation 30.7 0.7 -5.7 25.7
Revenue from project sales - - - -
Other income 11.4 - -0.4 11.0
Operating expenses -15.3 -0.6 3.4 -12.5
Cost of sales of projects under
development - - - -
General and administration expenses -19.8 - - -19.8
Share in result of associates and joint
ventures - - -6.0 -6.0
EBITDA 7.0 0.1 -8.7 -1.6
Depreciation -19.9 - 4.0 -15.9
Operating profit (EBIT) -12.9 0.1 -4.7 -17.5
Net financial items -6.5 - 4.7 -1.8
Tax 6.0 - - 6.0
Net result -13.4 0.1 - -13.3
Attributable to:
Shareholders of the Parent Company -13.4 - - -13.4
Non-controlling interest - 0.1 - 0.1
===== SIDA 93 =====
Additional information
Orrön Energy – Annual and Sustainability Report 2025 93
Definitions and Abbreviations
Definitions
Earnings per share Net result attributable to shareholders of the Parent Company divided
by the weighted average number of shares for the period.
Earnings per share – diluted Net result attributable to shareholders of the Parent Company divided
by the weighted average number of shares for the period after
considering any dilution effect.
EBIT (Earnings Before Interest and Tax) Operating profit.
EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortisation)
Operating profit before depreciation.
Equity ratio Total equity divided by the balance sheet total.
Net debt – Consolidated Interest bearing loans and borrowings less cash and cash equivalents.
Net debt – Proportionate Consolidated less cash and cash equivalents of associates and joint
ventures plus/minus adjustment for external interest-bearing loans and
borrowings of associates and joint ventures.
Return on equity Net result divided by average total equity.
Return on capital employed Income before tax plus interest expenses plus/less currency exchange
differences on financial loans divided by the average capital employed
(the average balance sheet total less non-interest-bearing liabilities).
Weighted average number of shares for
the period
The number of shares at the beginning of the period with changes in
the number of shares weighted for the proportion of the period they are
in issue.
Weighted average number of shares for
the period – diluted
The number of shares at the beginning of the period with changes in
the number of shares weighted for the proportion of the period they are
in issue after considering any dilution effect.
Abbreviations
CHF Swiss franc
EUR Euro
GBP British pound sterling
SEK Swedish Krona
TSEK
TEUR
Thousand SEK
Thousand EUR
MEUR Million EUR
MSEK Million SEK
Industry related terms and measurements
GW Gigawatt
GWh Gigawatt hour
MW Megawatt
MWh Megawatt hour
===== SIDA 94 =====
Additional information
94 Orrön Energy – Annual and Sustainability Report 2025
Shareholders’ information
Contacts
Robert Eriksson
Corporate Affairs and Investor Relations
Tel: +46 701 11 26 15
robert.eriksson@orron.com
Jenny Sandström
Communications Lead
Tel: +41 79 431 63 68
jenny.sandstrom@orron.com
Financial Calendar
Interim report for the first quarter of 2026 6 May 2026
Interim report for the second quarter of 2026 5 August 2026
Interim report for the third quarter of 2026 4 November 2026
Year-end report 2026 17 February 2027
Annual General Meeting
The 2026 Annual General Meeting (AGM) will be held on 1 April 2026 at 11.00 CET as a digital meeting combined with an
option to vote by post in advance of the AGM. Shareholders may choose to exercise their voting rights at the AGM by
attending the digital meeting online, through a proxy or by postal voting. More information regarding participation,
notification and agenda items can be found in the notice of the AGM, available on www.orron.com.
This information is information that Orrön Energy AB is required to make public pursuant to the Swedish Securities
Markets Act. The information was submitted for publication at 09.00 CEST on 6 March 2026.
===== SIDA 95 =====
Additional information
Orrön Energy – Annual and Sustainability Report 2025 95
Forward-Looking Statements
Statements in this report relating to any future status or circumstances, including
statements regarding future performance, growth and other trend projections are
forward-looking statements. These statements may generally, but not always, be
identified by the use of words such as “anticipate”, “believe”, “expect”, “intend”,
“plan”, “seek”, “will”, “would” or similar expressions. By their nature, forward-looking
statements involve risk and uncertainty because they relate to events and depend on
circumstances that could occur in the future. There can be no assurance that actual
results will not differ materially from those expressed or implied by these forward-
looking statements due to several factors, many of which are outside the Company’s
control. Any forward-looking statements in this report speak only as of the date on
which the statements are made and the Company has no obligation (and undertakes
no obligation) to update or revise any of them, whether as a result of new information,
future events or otherwise.
Corporate Head Office
Orrön Energy AB (publ)
Hovslagargatan 5
SE-111 48 Stockholm, Sweden
T +46-8-440 54 50
W orron.com