Global InterConnection : Annual Report and Financial Statements – year ended 31 December 2023

GLOBAL INTERCONNECTION GROUP LIMITED

Annual Report and Financial Statements

For the year ended 31 December 2023

GLOBAL INTERCONNECTION GROUP LIMITED

CONTENTS

For the year ended 31 December 2023

	Page
Company Overview	3
Summary Information	5
	6
Directors	8
Directors Strategic Report	9
Directors Remuneration Report	13
Corporate Governance Report	14
Report of the Audit Committee	21
Statement of Directors Responsibilities	24
Independent Auditor's Report	26
Consolidated Statement of Comprehensive Income	33
Consolidated Statement of Financial Position	34
Consolidated Statement of Cash Flows	35
Consolidated Statement of Changes in Equity	36
Consolidated Notes to the Financial Statements	37
Company Statement of Financial Position	60
Company Notes to the Financial Statements	61
Key Advisers and Contact Information	67

2

GLOBAL INTERCONNECTION GROUP LIMITED

COMPANY OVERVIEW

For the year ended 31 December 2023

COMPANY OVERVIEW

Global InterConnection Group Limited (the was established as a special purpose acquisition company and incorporated on 29 April 2021 under the laws of Guernsey as a non-cellular company limited by shares.

The Ordinary Shares and Warrants (as defined in its Prospectus) were admitted to trading on Euronext

Amsterdam, the regulated market operated by Euronext Amsterdam N.V. on 7 October 2021. During the period, the Company completed a business combination with Global InterConnection Group SA, as further described below.

ACCOUNTING POLICIES

The Company was established to complete a Business Combination (legal merger, amalgamation, share exchange, asset and/or liability acquisition, share purchase, reorganisation or similar business combination) and completed such an

acquisition on 6 July 2023 with Global InterConnection Group SA in a share for share acquisition (the "Transaction").

Following consultation and technical analysis with its auditors, the Board of Global InterConnection Group Limited determined that as well as the publication of the Company balance sheet and accounts, it should undertake the production of consolidated financial statements, so that the business combination, which took place during the

reporting period, can also be reflected as a within the scope of IFRS 2. Application of this treatment requires Global InterConnection Group SA and its subsidiaries are presented as the continuing entity in these consolidated financial statements, effectively showing the reverse acquisition of Global InterConnection Group Limited.

STRATEGIC OBJECTIVES

The Company's 31 December 2023 year-end accounts, following completion of the acquisition of Global InterConnection Group SA, as presented on a company stand alone basis as has been previously been the case are included from Page 60 onwards. These show a view of the Company and its operations that is in line with the expectations, with net assets of some £168 million.

The Group, comprising Global InterConnection Group Limited and its subsidiaries, is a platform for the manufacturing, development, operation, and ownership of interconnectors and other power transmission assets, with three interlocking divisions: (i) a portfolio of interconnector operating assets and projects; (ii) High Voltage Direct Current cable manufacturing to supply grid upgrades and our and others interconnector projects, and (iii) ancillary services, such as commissioning and overseeing the design, planning and operational management for grids and interconnectors. Interconnectors are power cables connecting different countries' electricity grids, as a means of improving energy security by expediting the transmission of energy internationally from where it is generated to where it is needed.

Market commentators are convinced the HVDC interconnector cable sector will experience sustained growth in the years to come owing to the increased penetration of renewable energy, growing electricity consumption, and a greater emphasis on energy security in national and international policy. This accelerated demand for HVDC cables, estimated to need $128 billion of investment in the period to 2030, comes along with a severe shortage in the supply of HVDC cable manufacturing to the required high standards.

In light of this, the Company is aims to build an integrated platform to service, supply and invest in interconnector cables and wider energy transmission infrastructure projects, comprising three interlocking divisions:

1. Advanced Cables PLC: high voltage direct current cable manufacturing facility, in partnership with a world-leading player in the HVDC cable manufacturing industry, LS Cables & Systems.
2. Global Interconnectors: a diversified portfolio of development, construction, and operation stage interconnectors including ASC Energy PLC which is working to deliver sustainable, low-carbon energy from Iceland to the UK through HVDC Cable Technology and Energy Infrastructure.
3. GIG Services: commissioning, design, planning and operational expertise.

3

GLOBAL INTERCONNECTION GROUP LIMITED

COMPANY OVERVIEW

For the year ended 31 December 2023

STRATEGIC OBJECTIVES (continued)

Advanced Cables PLC

Advanced Cables is developing the largest high voltage direct current cable factory, at the Port of Tyne in the North-East of England in partnership with a world class cable manufacturer. Key progress to date includes the creation of a joint venture company with LS Cables & Systems, the selection of the factory site and the signing of an exclusivity agreement with Port of Tyne, the production of factory design specifications, and the expected enlistment of strong national and local government support for the project. More details on the latest developments are contained in the Chairman's statement.

ASC Energy PLC

ASC Energy PLC aims to develop a 1,800 MW 1,708 km interconnector between Iceland and the UK. The interconnector would provide Iceland with a greater security of energy supply. The cable would bring geothermal and hydroelectric electricity to the UK; and potentially take offshore wind power to the existing Icelandic hydro dams with pumped

In September 2022, GIG entered into a partnership with RTE International ("RTEi"), the consultancy arm of the French transmission system operator RTE. This saw RTEi appointed as ASC's owner's engineer for the completion of the development stage, with RTEi receiving options in order to promote alignment. RTEi and its parent are among the world's major interconnector consultancies and owner-operators respectively, bringing significant expertise and experience to the ASC project.

By providing the UK with dependable zero carbon energy, ASC Energy PLC will help address the supply volatility from

growing dependence on wind and solar; reduce the dependence on fossil fuels for peaking power; enhance energy security and reduce energy prices for UK consumers as businesses alike. AFRY, a global energy and engineering consultancy, have estimated that ASC will reduce UK CO2 emissions by 1 million tonnes per year, so over 3% of the total energy sector emissions.

4

GLOBAL INTERCONNECTION GROUP LIMITED

SUMMARY INFORMATION

For the year ended 31 December 2023

Listing	Euronext Amsterdam
Share Price	£7.00 (31 December 2023)
Market Capitalisation	£130.9m
Current / Future Anticipated Dividend	Nil
Dividend Payment Dates	n/a
Currency	Pounds Sterling (£)
Launch Date / Share Price (nominal)	£0.0001
Incorporation and Domicile	Guernsey
Legal advisors - Dutch Law	Stibbe N.V.
Legal advisors - UK Law	Herbert Smith Freehills LLP
Legal advisors - Guernsey Law	Ogier (Guernsey) LLP
Administrator	Admina Fund Services Limited
Auditor	BDO LLP
Market Makers	J.P. Morgan Securities Plc
SEDOL, ISIN, LEI	GG00BMB5XZ39
Year End	31 December
Stocks & Shares ISA	Eligible
Website	www.globalinterconnectiongroup.com

5

GLOBAL INTERCONNECTION GROUP LIMITED

CHAIRMAN'S STATEMENT

For the year ended 31 December 2023

Dear Shareholders,

my pleasure to write the third Review. Since our last review, the world continues to see challenging public markets, high inflation driven largely by the energy crises affecting households and businesses equally. This has created a challenging environment in which to complete a business combination and raise capital.

Nevertheless, during the year the Company completed its business combination with Global InterConnection Group SA and the following important milestones have been achieved:

LS Eco Advanced Cables

LS Eco Advanced Cables is the joint venture between Global InterConnection Group and one of the subsidiaries of LS Group, the leading world-class Korean cable manufacturer, formed for the purpose of advancing development of the factory.

LS Cable & System (LSCNS) is among the leading cable manufacturers, and one of only five to have the gold- standard CIGRE certification for HVDC cable production.

On the 24th May 2024, LS Eco Advanced Cables, signed an agreement with Port of Tyne in which the parties have agreed a limited but extendable period of exclusivity during which the Port of Tyne has agreed to refrain from entering into 3rd party transactions in order to allow the parties time to negotiate agreements for the grant of a long lease relating to the Tyne Renewables Quay site, for the development (subject to planning permission) of a HVDC cable factory.

Global InterConnection Group Services in negotiations to merge with Red Penguin

Global InterConnection Group is in advanced negotiations for the potential acquisition of Red Penguin Marine

Red Penguin Marine is an international group of companies working together to provide subsea cable engineering and marine consulting services. They are a market leader in support for the submarine cable sector, whose services cover all stages from project strategy to construction and asset management.

At the date of this Report, Red Penguin Marine have worked on 10 interconnectors, including IFA and IFA 2000, the cross-Channel interconnectors operated by RTE and National Grid.

Red Penguin has been supporting GIG as technical advisors on LS Eco Advanced Cables and interconnector

Critical in the construction of interconnector projects, both locally and globally, contributing to enhancing energy supply security against a backdrop of geopolitical uncertainty and increased network imbalances

GIG has therefore made an approach to acquire the company from Chris Sturgeon, founder and CEO of Red Penguin,

with the view that the acquisition of the company would enhance technical and operational expertise on interconnectors.

6

GLOBAL INTERCONNECTION GROUP LIMITED

CHAIRMAN'S STATEMENT

For the year ended 31 December 2023

Amelia Henning joining as CEO

We welcome Amelia Henning as the incoming CEO for Global Interconnection Group. Until March 2024 Amelia was a

member of the Australian fund manager, Global Infrastructure Equity team, based in London. Amelia joined QIC in 2022 after five years with Barings Global Infrastructure Debt team, where she was a Managing Director and voting member of the Barings Global Infrastructure Debt credit committee. Prior to Barings, she was part of the Capital Structuring Group at RBC Capital Markets, where she worked in a variety of roles from infrastructure advisory, to capital structuring and private placements.

Amelia previously held roles in the Corporate, Private Finance team at HM Treasury. Amelia holds an MA in Economics from Pembroke College, Cambridge University and an MSc in Economics from University College London.

Overall strategic progress

These exciting developments vindicate the strategic thesis advanced at the time of the listing on the Euronext Amsterdam in July last year.

The LS Eco Advanced Cables JV aims to become a leader in HVDC cable manufacturing and a critical facilitator of the Energy Transition and greater energy security. The severe shortage of HVDC cable represents a hurdle to the energy transition and energy security developments and therefore offers LS Eco Advanced Cables the potential to capture market growth in the HVDC cables segment.

Leveraging the world-class expertise of LS Cables, own interconnector projects, and the inexorable demand for HVDC cable, LS Eco Advanced Cables expects to generate significant long-term revenues on highly attractive margins,

We are pleased also to offer first refusal to our current shareholders to invest into a limited number of bonds and shares that are now being placed. The proceeds will be used to support the next phase of development of the Factory; of

Atlantic SuperConnection the potential acquisition of Red Penguin; and towards the expansion of portfolio of interconnectors.

I am indebted to the board, management, advisers and shareholders for their unstinting support. The strengthening of the management and board, by virtue of the recruitment of Amelia Henning as CEO and the mooted acquisition of Red Penguin, will add considerably to GIG Services as well as the wider group. As one can see from the publication of last accounts, they have been steadfastly developing the GIG group, in some cases for a decade or so. Whilst GIG has come a long way, it is with great pleasure that we can all now embark on the next phase of definitive strategic progress.

We have far to go.

Edmund Truell

Chairman

Date: 28 May 2024

7

GLOBAL INTERCONNECTION GROUP LIMITED

DIRECTORS

For the year ended 31 December 2023

As at the date of this Annual Report 2023, the Statutory Board of Directors (the is composed of the following

Roger Le Tissier, aged 59 (Director) - Appointed to the Board on 29 April 2021

Roger Le Tissier is a non-executive director of the Company. He holds several non-executive director positions with leading asset managers, private equity general partners, insurance, pension companies and charities. Previously, he was a partner of the law firm and fiduciary group Ogier and the founder partner of Ogier, Guernsey from its inception in 1998 until 2013. He also serves as a non-executive director of Pension SuperFund and Long Term Assets Limited.

Appointed to the Board on 30 June 2023

Richard Pinnock is an independent non-executive director of the Company. He was Executive Vice President and Head of the Energy Division at AFRY, a global energy and engineering consultants and project managers advisory group until

August 2022. He was previously responsible for Poyry Large Project Competence Centre (LPCC) business group, leading a team of EPC specialists in identifying, selling, structuring, negotiating and steering the implementation of large

complex projects; responsible for creating	unique EPC+ System Methodology. He also led the Poyry M&A and
Large Project Function.

Edmund Truell, aged 61 (Director) - Appointed to the Board on 29 April 2021

Edmund Truell is the executive chairman of the Company.

He is the managing partner of Disruptive Capital. His investment track record has a lifetime average net realised IRR of approximately 29% with over £12 billion of equity investments across the past 30 years of his private market investing

career. Disruptive Capital is focused on investing. with a wide portfolio including investments in Telent that specialises in the design, installation and maintenance of the UKs digital infrastructure. He also retains an investment in the Pension Insurance Corporation which he co-founded In 2007 with his late brother, Daniel Truell, one

of the United largest ever start-ups. As its chief executive officer, he developed the Pension Insurance Corporation into a leader in the UK bulk annuity market, before in 2013 becoming Chairman of London Pension Fund Authority, where is co-founded GLIL, the pooled vehicle for infrastructure investment.

Jennie Younger, aged 68 (Director)

Jennie Younger is an independent non-executive director of the Company. Jennie has almost 40 years of experience working in finance, pharmaceutical business and latterly higher education with a strong background in Capital Markets, Corporate Affairs, Investor Relations, Communications, Government Relations, Corporate Responsibility and

Fundraising. Jennie is an Executive Director of College London and Health Partners and a member of the Senior Management Team. She is also Non-Executive Chair of the Centre for Process Innovation (CPI) part of the High Value Manufacturing Catapult. She was previously Vice President and Global Head of Corporate Affairs at AstraZeneca, with responsibility globally for all internal and external Corporate Affairs and Communications, including Government Relations. Previous roles include similar responsibility at GlaxoSmithKline and British Gas and before that, as a Vice President in Deutsche Bank.

Luke Webster, aged 43 (Director) - Appointed to the Board on 18 May 2023

Luke Webster is a non-executive director of the Company. He is the CIO of the Greater London Authority, responsible for group treasury, housing infrastructure and environmental investment. His major infrastructure project experience includes leading the multi-£billion financing of the Elizabeth Line and the Northern Line Extension. Between 2013 and 2015, he was Chief Finance and Risk Officer at the London Pensions Fund Authority where he was the co-architect of

consolidating into SuperPools of £260 billion. In 2015, Luke co-founded GLIL which now manages £12 billion of infrastructure investments.

8

GLOBAL INTERCONNECTION GROUP LIMITED

DIRECTORS STRATEGIC REPORT

For the year ended 31 December 2023

Principal Activities and Investing Policy

The Company was incorporated on 29 April 2021 under the laws of Guernsey as a non-cellular company limited by

shares. The Ordinary Shares and Warrants were admitted to trading on Euronext Amsterdam on 7 October 2021.

The Company had an initial offering of up to 12,500,000 Ordinary Shares and up to 6,250,000 Warrants. The Company offered the Ordinary Shares and Warrants in the form of Units, each consisted of one Ordinary Share and ½ of a redeemable Warrant. During the year, the Company completed a warrant exercise program raising £1.95m and resulting in the issue of 1,339,932 Ordinary Shares and £1,390,700 ASC Energy Limited 2056 bonds.

Global InterConnection Group is now in the development phase of establishing a cable factory and the production and installation of a subsea cable between the UK and Iceland and funds raised will be utilised for this purpose with excess funds placed on deposit or short term paper. The Company expects both elements of Global InterConnection Group to create significant shareholder value over the coming years.

Risk Management

The Directors are responsible for supervising the overall management of the Company. Portfolio exposure has been limited by the guidelines which are detailed within the Principal Activities and Investment Policy section of the annual report.

The principal risks facing the Company, include but are not limited to, the following:

• performance risk;
• market risk;
• financing risk;
• governmental and regulatory risk;
• relationship risk; and
• operational risk

An explanation of these principal risks and how they are managed is set out below.

Performance Risk

The Company is now focused on a two lines of business, both within the energy sector. Accordingly, the prospects of the

• solely dependent upon the performance of a single business, line of business or assets and liabilities; or
• dependent upon the development or market acceptance of a single or limited number of products, processes or services.

As a result, returns for Ordinary Shareholders may be adversely affected if growth in the value of the company is not achieved or if the value of the company or business or any of its material assets is written down.

The Company is dependent on future fundraising efforts to meet the development costs of the cable factory and installation of the subsea cable between the UK and Iceland. If the fund raising efforts are not successful the Company may be unable to pay its expenses or make distributions and dividends on the Ordinary Shares. An inappropriate strategy or poor execution of strategy may further lead to underperformance.

Upon the completion of successful fundraising and development of the business strategy, the Company will be reliant on its two main operating segments. In order to mitigate the performance risk associated with a single subsea cable between the UK and Iceland the Company is seeking to build a portfolio of similar interconnectors to mitigate performance risk across a portfolio of similar interconnectors.

9

GLOBAL INTERCONNECTION GROUP LIMITED

DIRECTORS STRATEGIC REPORT

For the year ended 31 December 2023

Market Risk

Market risk arises from uncertainty about the future operating performance and market response to the main operating market. The Company has chosen to invest in the renewable energy sector in which it expects there to be an increasing demand for future energy supply. Further, due to the more disaggregated nature of renewable energy the Company expects demand for HVDC cable to increase.

The Company has therefore created an intended exposure to the market risks associated with the renewable energy sector. Such sector concentration may subject the Company to greater market fluctuation and loss than might result from a diversified investment portfolio.

Investors may be unable to sell their Ordinary Shares unless a viable market can be established and maintained. Accordingly, the Ordinary Shares may not be suitable for short-term investment. Admission on the Euronext Amsterdam should not be taken as implying that there will be an active trading market for the Ordinary Shares. Even with an active trading market, the market price for the Ordinary Shares and Warrants may fall below the Offer Price.

Financing Risk

The investments in the Company's divisions require additional joint venturing and/or co-investments alongside third- party co-investors, which may come in the form of additional contributions from the Company or third parties on terms that are not (necessarily) favourable to Company and which may involve risks that may not be present in investments made without joint venture partners and/or co-investors.

Delays in obtaining financing may impact the development of projects and subsequently have an adverse impact on income and capital returns to GIG shareholders.

Governmental and Regulatory Risk

GIG's production process is subject to environmental and health and safety laws and regulations, such as noise, environment and transport regulations. If such regulations become more stringent, for example, as a result of pressure from environmental organisations, GIG may be forced to adjust its production process with associated increased costs and potentially a reduced capacity, which may impact revenue obtained by the Company.

Relationship Risk

Global InterConnection success may be dependent on the skills and expertise of certain employees or

may be materially adversely impacted. At this early stage of the business this risk is largely unavoidable however as a mitigant all key individuals have a stake in the business and its continued success and are therefore incentivised to remain with the business. In due course, the team will be expanded to provide a level of succession planning commensurate with the size of the company.

Operational Risk

The Group intends to build and operate both an HVDC cable factory and a subsea interconnector between the UK and

Iceland. Each business will have risks unique to its operation however at this stage of the development risks are primarily restricted to:

• Management of various technical experts and the associated costs contributing to the project development;
• Identification, monitoring and achievement of key milestones regarding each line of business (for example, securing suitable site for the HVDC factory);
• Securing all necessary permits, permissions, operating or JV partnerships etc.; and
• Compliance with Euronext listing requirements and Guernsey company law.

10