Frontier Energy (FHE) investor relations material

Project overview and market context

• Developing the largest hybrid renewable energy project in Western Australia, combining solar and battery storage to address the region's energy transition needs.

• Waroona Renewable Energy Project Stage One features 120MW solar and 81.5MW/565MWh battery, with Stage Two expansion studies underway.

• Project is positioned to benefit from high electricity prices, growing demand, and planned coal and gas retirements in WA.

• Reserve Capacity Mechanism in WA provides guaranteed revenue, supporting project financing and long-term viability.

Financial highlights and funding

• Stage One is development-ready, with land, permits, approvals, and grid connection secured.

• Debt funding solution nearing completion, targeting up to $220 million in senior debt and $100 million in mezzanine debt, with strong interest from tier one banks.

• Guaranteed reserve capacity revenue of ~$32 million per year until 2032, with additional revenue from energy sales and LGCs.

• Updated forecasts show average annual revenue of $72.5 million and EBITDA margin of 86% over the first five years.

• Project IRR post-tax is 22% with a payback period of approximately six years.

Growth strategy and competitive positioning

• Multi-stage growth strategy aligns with WA's supply gap, with Stage Two expansion leveraging existing land and approvals.

• Project is among the most advanced hybrid developments in WA, with barriers to entry passed and a pathway for further growth.

• Hybrid solar and battery facilities are optimal for maximizing revenue and grid stability, outperforming standalone batteries in the WA market.

• Listed renewable energy companies in Australia trade at high EBITDA multiples, with the project offering strong valuation potential and takeover appeal.

• One of the few standalone renewable energy developers listed on the ASX, representing a unique investment opportunity.