WindForce : INTERIM CONDENSED FINANCIAL STATEMENTS - TWELVE MONTHS ENDED 31/03/2022

DocuSign Envelope ID: 309A23FA-34AD-4116-8898-BDC29ECCC91B

DocuSign Envelope ID: 309A23FA-34AD-4116-8898-BDC29ECCC91B

MANAGING DIRECTOR'S MESSAGE

Dear Shareholder,

It is with great pleasure that I present to you the quarterly report for WindForce PLC, for the period ended on 31st March 2022. Despite it being a tumultuous time, both globally and locally, I am pleased to report that we have yielded encouraging results.

Firstly, the Group recorded a consolidated revenue of LKR 4.39 billion at the end of the period. This contributed to a 2% growth when compared to the LKR 4.31 billion recorded in the previous financial year. The bottom line for the period was recorded as

1.89 billion, showing a YoY decline of 12% in comparison with the LKR 2.15 billion recorded last year. The decline is due to the net loss of 296 million, arising from the fair value adjustment of foreign loans and foreign short-term investments.

Wind Energy Sector

With the Hiruras wind power plants that will utilise the Mannar district's high wind density approaching completion by December, our wind energy portfolio has a bright future ahead. Compared to the previous year, the revenue for the wind energy sector saw a YoY decline of 8%. This was due to the tariff rate drop in Daily Life and PowerGen, as the two project companies entered their second tier in operation. This decline was also partly due to Joule and Beta power companies operating at limited capacity, due to blade damage caused by lightning strikes. However, with repairs currently underway, the issue will be rectified by the next immediate quarter, allowing the companies to function at full capacity again.

Solar Energy Sector

A YoY growth of 15% was seen in comparison to the previous financial year in the solar sector. This was possible due to significant contributions from the Tororo Solar Plant, which was commissioned in August 2020, and Sky Solar (Pvt) Ltd., which was acquired in September 2021. In addition, we are confident that the 10 MW ground mounted solar plant in Vavunathivu, which is set to be commissioned in mid-July this year, will successfully contribute to this sector as well.

Hydropower Sector

A YoY revenue growth of 14% was recorded in the hydropower sector. Hydro generation volumes grew significantly by 16% when compared to the previous financial year, due to increased and consistent rainfall in the country. These favourable weather conditions allowed the Terraqua International, Energy Reclamation, HPD Power and Peak Power plants to garner exemplary performances in the financial year ended 31st March 2022.

Expansion

As we look ahead on our journey, there are a multitude of projects we are optimistic about. As mentioned before, the Solar Universe Vavunathivu 10MW ground solar plant is expected to be commissioned in July 2022, after a brief delay due to the prevailing national economic climate. This state-of-the-art plant will increase WindForce's solar energy portfolio capacity to 134MW.

Additionally, the proposed wind power plants undertaken by Hiruras Power (Pvt) Ltd, will be completed by the end of 2022. Located in the Mannar district, these plants will benefit from the area's high wind density and will increase WindForce's wind energy portfolio capacity by 15MW.

Finally, negotiations are underway for the development of a 30 MW solar and 7.5 MW BES system in Mbacke, Senegal and for a 30MW Solar plant expansion in Tororo, Uganda.

The projects developed this year in Sri Lanka will provide 25 MW of uninterrupted, renewable energy to a struggling National Grid, which will undoubtedly benefit the Sri Lankan homes in dire need of electricity.

Awards

Along with our exciting future, we are gratified by the recognition WindForce receives, both nationally and internationally. We were recently presented with the prestigious gold award in the Large- Scale Infrastructure and Utilities category, at the National Business Excellence Awards, organised by the National Chamber of Commerce, Sri Lanka.

During this quarter, WindForce was also able to comply with the Clean Development Mechanism (CDM), governed by the United Nations Framework Convention on Climate Change (UNFCCC). With the adoption of the CDM, WindForce possesses the ability to issue Carbon Emission Reduction credits (CER); one of the first renewable energy companies to do so in Sri Lanka.

In conclusion, our motivation and optimism towards our ultimate goal of a greener future has never been stronger. As we continue to push forward to achieve our goals, we are eternally grateful for the confidence that you, as a shareholder, have placed on us and our vision. We look forward to continuing our journey together, as we strive for a better world for all.

Manjula Perera

Managing Director

Colombo

26th May 2022

WINDFORCE PLC | INTERIM CONDENSED FINANCIAL STATEMENT
TWELVE MONTHS ENDED 31 MARCH 2022	1

DocuSign Envelope ID: 309A23FA-34AD-4116-8898-BDC29ECCC91B

CONSOLIDATED INCOME STATEMENT

				Three Months Ended 31st March			Twelve months Ended 31st March
				2022		2021			%		2022		2021		%
									Change				(Audited)		Change
		Revenue		770,741,834		880,110,573			-12%		4,392,762,377		4,310,110,387	2%
		Direct Cost		(481,899,179)		(435,503,773)			11%		(1,668,774,726)		(1,555,479,553)	7%
		Gross Profit		288,842,655		444,606,801			-35%		2,723,987,651		2,754,630,834	-1%
		Other Income		87,738,331		146,123,366			-40%		197,869,787		249,292,932	-21%
		Administration Expenses		(149,008,597)		(186,826,609)			-20%		(644,046,568)		(593,338,434)	9%
		Profit from Operating Activities		227,572,388		403,903,557			-44%		2,277,810,870		2,410,585,332	-6%
		Finance Income		49,702,218		32,555,740			53%		225,697,670		148,627,427	52%
		Finance Costs		(110,118,877)		(80,849,603)			36%		(378,901,409)		(420,558,810)	-10%
		Net Gain/(Loss) from Fair Value Adjustment of		(295,857,252)		-					(295,857,252)
		Foreign Loans & Foreign Short Term investments
		Profit from Ordinary Activities before
		Taxation		(128,701,523)		355,609,695			-136%		1,828,749,878		2,138,653,949	-14%
		Gain on Bargain Purchase		-		-			-		3,071,469		-	100%
		Share of results of equity accounted investee		3,270,780		12,201,503			-73%		305,273,043		409,099,565	-25%
		Profit before Taxation		(125,430,743)		367,811,197			-134%		2,137,094,390		2,547,753,514	-16%
		Income Tax Expenses		(36,083,854)		(264,719,153)			-86%		(241,199,303)		(401,504,991)	-40%
		Profit after Taxation		(161,514,597)		103,092,045			-257%		1,895,895,087		2,146,248,524	-12%
		Attributable to:
		Non-controlling interests		56,711,163		44,780,082			27%		387,722,929		396,430,002	-2%
		Equity holders of the parent		(218,225,760)		58,311,963			-474%		1,508,172,158		1,749,818,522	-14%
				(161,514,597)		103,092,045			-257%		1,895,895,087		2,146,248,524	-12%
		Other comprehensive income for the period		-		-			-		-		20,334,863	-100%
		Total comprehensive income for the period		(161,514,597)		103,092,045			-257%		1,895,895,087		2,166,583,387	-12%
		Attributable to:
		Non-controlling interests		56,711,163		44,780,082			27%		387,722,929		396,430,002	-2%
		Equity holders of the parent		(218,225,760)		58,311,963			-474%		1,508,172,158		1,770,153,345	-15%
				(161,514,597)		103,092,045			-257%		1,895,895,087		2,166,583,347	-12%
		Earnings per share		(0.16)	0.05					1.17	1.52
		Dividend per share		-	-					1.30	0.35

Notes:

The above figures are in LKR, unless otherwise stated.

The figures in brackets indicate deductions.

The above figures are not audited, unless stated otherwise.

WINDFORCE PLC | INTERIM CONDENSED FINANCIAL STATEMENT
TWELVE MONTHS ENDED 31 MARCH 2022	2

DocuSign Envelope ID: 309A23FA-34AD-4116-8898-BDC29ECCC91B

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

				As at 31.03.2022	As at 31.03.2021
				Unaudited	Audited
	ASSETS
	Non-Current Assets
	Property, Plant and Equipment			14,629,738,878	15,239,783,617
	Investments in Equity Accounted Investees			3,204,055,192	2,205,809,099
	Non-Current Financial Assets			660,765,640	1,503,348,708
	Intangible Assets			2,655,915,703	2,674,824,008
	Total Non-Current Assets		21,150,475,413	21,623,765,432
	Current Assets
	Inventory			532,128,739	459,721,533
	Other Non-Financial Assets			14,605,777	14,605,777
	Trade and Other Receivables			3,820,115,078	1,656,829,248
	Income Tax Receivable			66,658,530	(17,628,307)
	Amounts Due from Related Parties			31,990,524	53,093,964
	Short Term Financial Assets			3,315,539,382	1,765,887,466
	Cash and Cash Equivalents			1,295,763,115	8,459,543,027
	Total Current Assets			9,076,801,145	12,392,052,708
	Total Assets		30,227,276,558	34,015,818,140
	EQUITY AND LIABILITIES
	Capital and Reserves
	Stated Capital			18,226,455,905	14,984,610,448
	Retained Earnings		2,427,835,790	2,731,034,146
	Share pending for Allotment			-	3,241,845,456
	Foreign Currency Translation Reserve			(168,194,357)	1,123,288
	Total Equity			20,486,097,339	20,958,613,338
	Non-Controlling Interest			1,985,146,591	1,880,602,359
			22,471,243,930	22,839,215,697
	Non-Current Liabilities
	Interest Bearing Loans & Borrowings			3,854,859,743	4,562,383,822
	Employee Benefit Liabilities		64,427,668	51,142,973
	Deferred Tax Liabilities			1,342,804,455	1,364,607,998
	Total Non-Current Liabilities		5,262,091,866	5,978,134,793
	Current Liabilities
	Interest Bearing Loans & Borrowings			1,151,041,945	1,297,698,221
	Trade and Other Payables			442,924,905	3,407,962,842
	Amounts Due to Related Parties			14,163,791	39,994,202
	Bank Overdraft		885,810,122	452,812,386

WINDFORCE PLC | INTERIM CONDENSED FINANCIAL STATEMENT
TWELVE MONTHS ENDED 31 MARCH 2022	3

DocuSign Envelope ID: 309A23FA-34AD-4116-8898-BDC29ECCC91B

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Total Current Liabilities			2,493,940,763	5,198,467,651
	Total Equity and Liabilities			30,227,276,558	34,015,818,140
	Net assets per share	15.17	18.25

Notes:

The above figures are in LKR, unless otherwise stated.

The figures in brackets indicate deductions.

The Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007.

Chief Financial Officer

Rusiri Cooray

The Board of Directors are responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the Board by:

Director	Director
Asgi Akbarally	Manjula Perera
Date of approval by the Board: 26th May 2022

WINDFORCE PLC | INTERIM CONDENSED FINANCIAL STATEMENT
TWELVE MONTHS ENDED 31 MARCH 2022	4