Third quarter

2020

About Scatec Solar

Scatec Solar is a leading integrated independent renewable power producer, delivering affordable, rapidly deployable and sustainable clean energy worldwide. A long-term player, Scatec Solar develops, builds, owns and operates renewable power plants and has an installation track record of more than 1.6 GW. The Company has a total of 1.9 GW in operation and under construction on four continents.

With an established global presence and a significant project pipeline, the company is targeting a capacity of 4.5 GW in operation and under construction by end of 2021. Scatec Solar is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol 'SSO'.

Asset portfolio 1)

Segment overview

Development & Construction

The Development & Construction segment derives its revenues from the sale of development rights and construction services delivered to power plant companies where Scatec Solar has economic interests.

Power Production

The plants produce electricity for sale under long term power purchase agreements (PPAs), with state owned utilities or corporate off-takers, or under government-based feed-in tariff schemes. The average remaining PPA duration for power plants in operation is 20 years.

Services

The Services segment comprises Operations & Maintenance (O&M) and Asset Management services provided to solar power plants where Scatec Solar has economic interests. O&M revenues are generated on the basis of fixed service fees with additional profit-sharing arrangements. Asset Management services typically include financial reporting to sponsors and lenders, regulatory compliance, environmental and social management, as well as contract management on behalf of the power plant companies.

Corporate

Corporate consists of activities of corporate services, management and group finance.

1) Per reporting date.

2) Scatec Solar's share of the total estimated economic return from its subsidiaries. For projects under development the economic interest may be subject to change.

Q3'20 – Increased power production and growth in project pipeline

Power production reached 430 GWh, up 46 % from last year
EBITDA 1) of NOK 319 million, down from NOK 433 million last year – strong growth in Power Production offset by reduced D&C revenues
Added 900 MW to project pipeline several large projects maturing
Scatec Solar to acquire SN Power from Norfund for a total consideration of USD 1,166 million – SN Power reported 2019 EBITDA of NOK 1,149 million

Proportionate revenues and EBITDA NOK million

Key figures

NOK million	Q3 2020	Q2 2020	Q3 2019	YTD 2020	YTD 2019

Proportionate Financials 1)
Revenues and other income	556	925	1,522	2,347	4,699
Power Production	457	458	343	1,306	798
Services	60	73	49	186	120
Development & Construction	30	383	1,121	827	3,756
Corporate	9	11	9	28	24
EBITDA 1)	319	417	433	1,082	1,136
Power Production	379	374	291	1,084	671
Services	22	34	23	72	49
Development & Construction	-27	22	133	10	457
Corporate	-54	-13	-14	-84	-40
Operating profit (EBIT)	159	262	317	627	848
Profit/(loss)	-85	-15	174	140	439
Net interest- bearing debt 1)	6,266	6,254	6,091	6,266	6,091
Power Production (GWh)	430	406	295	1,185	626
SSO proportionate share of cash flow to equity 1)	80	158	218	345	594
Consolidated Financials
Revenues and other income	724	725	512	2,075	1,214
EBITDA 1)	538	580	418	1,621	949
Operating profit (EBIT)	343	377	270	1,048	603
Profit/(loss)	-24	-81	66	193	99
Net interest- bearing debt 1)	9,746	9,868	9,678	9,746	9,678
Basic earnings per share	-0.43	-0.76	0.27	0.61	-0.24
Power Production (GWh) 2)	793	738	517	2,155	1,117

1) See Alternative Performance Measures appendix for definition.

2) Production volume on a 100% basis of all consolidated entities, including from JV companies.

NOK million	Q3 2020	Q2 2020	Q3 2019	YTD 2020	YTD 2019

Revenues and other income	556	925	1,522	2,347	4,699
Gross Profit	530	596	565	1,624	1,481
Operating expenses	-211	-180	-132	-541	-345
EBITDA	319	417	433	1,082	1,136
EBITDA margin	57%	45%	28%	46%	24%
D&A and impairment	-161	-155	-116	-455	-289
EBIT	159	262	317	627	848
Cash flow to equity 1)	80	158	218	345	594

Group – Proportionate financials

In the third quarter, proportionate revenues decreased compared to the same quarter last year due to lower construction activity only partly offset by higher power production revenues.

EBITDA decreased by 26% compared to the same period last year and by 24% compared to the previous quarter, primarily driven by the low construction activity in the quarter.

With a larger portfolio of power plants in operation, both revenues and EBITDA increased in the Power Production segment, while decreasing in the Development & Construction segment due to lower construction activity. This continued change in segment mix resulted in a higher EBITDA margin for the Group compared to previous periods.

Operating expenses and depreciation increased, mainly due to new solar power plants starting operation as well as NOK 35 million of expensed transaction cost related to the SN Power acqusition.

1) See Alternative Performance Measures appendix for definition.

Power Production – Proportionate financials

NOK million	Q3 2020	Q2 2020	Q3 2019	YTD 2020	YTD 2019

Revenues and other income	457	458	343	1,306	798
Operating expenses	-78	-84	-52	-222	-127
EBITDA 1)	379	374	291	1,084	671
EBITDA margin 1)	83%	82%	85%	83%	84%
D&A and impairment	-149	-144	-107	-417	-257
EBIT	230	230	184	667	414
Cash flow to equity 1)	134	135	121	374	258

1) See Alternative Performance Measures appendix for definition.

At the end of third quarter, power plants with a total capacity of 1,505 MW were in operation. The total capacity increased by 377 MW compared to same quarter last year.

Power production reached 430 GWh in the third quarter compared to 406 GWh in the previous quarter and 295 GWh in the same quarter last year, mainly explained by added capacity.

Operating expenses and depreciations were broadly in line with previous quarter, and the profitability remained fairly stable.

See additional information on page 16 for a specification of financial performance for each individual power plant company.

Services – Proportionate financials

Q3 2020	Q2 2020	Q3 2019	YTD 2020	YTD 2019

60	73	49	186	120
-39	-39	-26	-114	-72
22	34	23	72	49
36%	47%	47%	39%	41%
-1	-1	-1	-2	-3
21	33	22	70	46
17	27	18	57	38

Revenues from Services increased by 22% from the same period last year due to new plants starting operations in Ukraine, Egypt and South Africa. The revenues in the second quarter included a NOK 14 million catch up of service revenues, which explains the decrease in revenue and EBITDA margin in third quarter.

Operating expenses are stable compared to last quarter, and mainly constitute fixed expenses, covering personnel and recurring maintenance cost reflecting fixed maintenance schedules.

1) See Alternative Performance Measures appendix for definition.

Development & Construction (D&C) – Proportionate financials

NOK million	Q3 2020	Q2 2020	Q3 2019	YTD 2020	YTD 2019

Revenues and other income	30	383	1,121	827	3,756
Gross Profit	4	53	163	103	539
Gross Margin 1)	13%	14%	15%	12%	14%
Operating expenses	-31	-32	-31	-94	-83
EBITDA	-27	22	133	10	457
D&A and impairment	-7	-4	-7	-21	-26
EBIT	-33	17	125	-11	431
Cash flow to equity 1)	-19	19	106	13	364

1) See Alternative Performance Measures appendix for definition. 2) Figures in brackets refer to same quarter previous years.

D&C revenues decreased significantly in the quarter following completion of all main activities related to current construction portfolio. Accumulated progress across ongoing construction projects at the end of the third quarter was 96%.

The 47 MW Redsol project reached commercial operation early October 2020. Limited construction activities remain for the ongoing projects in Argentina and Ukraine. The remaining plants are currently estimated to be completed in the first quarter 2021.

The project development activity has been high across several markets during the quarter with a total project development spend of NOK 91 million in the quarter. The Company continued to mature a wide range of project, resulting in an increase in pipeline of 900 MW in the third quarter.

The 13% gross margin for the quarter reflects the current mix of projects under construction and under development.

Operating expenses comprised of approximately NOK 21 million (22) 2) for early stage development of new projects and NOK 10 million (9) related to the construction business.

The EBITDA reduction compared to same quarter last year is primarily due to lower construction activity.

NOK million	Q3 2020	Q2 2020	Q3 2019	YTD 2020	YTD 2019

Revenues and other income	9	11	9	28	24
Operating expenses	-63	-24	-23	-112	-63
EBITDA	-54	-13	-14	-84	-40
D&A and impairment	-5	-5	-1	-14	-4
EBIT	-59	-18	16	-98	-44
Cash flow to equity 1)	-52	-23	-28	-99	-66

1) See Alternative Performance Measures appendix for definition.

Revenues in the corporate segment refers to management fees charged to the other operating segments for corporate services rendered across the Group.

Operating expenses in the third quarter was impacted by NOK 35 million of transaction costs related to the acquisition of SN Power.

Short term guidance

Power production

The estimated production for fourth quarter and full year 2020 is based on production from the 1,505 MW in operation at the end of third quarter 2020.

GWh	Q3 2020	Q4 2020E	2020E

Proportionate	430	410 - 425	1,580 – 1,630
100% basis	793	770 - 800	2,900 – 3,000

Services

Revenues in the Services segment are expected to reach approximately NOK 240 million in 2020 with an EBITDA margin of around 35%.

Development & Construction

D&C revenues and margins are dependent on progress on development and construction projects.

At the end of third quarter, the portfolio under construction represents awarded Development & Construction contracts with a value of about NOK 1.1 billion. The remaining, not booked, contract value at the end of third quarter 2020 was about NOK 45 million.

The portfolio under construction was 96% completed at the end of third quarter, hence revenues from D&C are expected to be low also in fourth quarter of 2020. The revenues are estimated to increase significantly in 2021 when projects currently in backlog move into construction.

Corporate

Operating expenses in the corporate segment are expected to remain at current levels (excluding transaction costs) as the strengthening of corporate functions mainly have been done over the recent quarters.

Additional transaction costs related to the SN Power acquisition is expected to be recognised in the fourth quarter 2020.

Corporate – Proportionate financials

COVID-19 impacts

Scatec Solar has during third quarter continued to follow and implement the respective national authorities' advice and recommendations regarding COVID-19. The Company has measures in place at all sites and locations to limit the spread of the virus, keep people safe, and ensure continued stable operations of the power plants. Strict travel restrictions are continued for all employees globally.

As communicated earlier, power supply is defined as critical infrastructure in all countries where Scatec Solar has operating assets, and power production and general maintenance continue as normal. The Company has to date experienced limited impact of COVID-19 on operating assets or on delivery of power to customers. All solar plants require few operators and are remotely monitored and supported 24/7 by the Company's global Control & Monitoring Centre in Cape Town, South Africa. Scatec Solar has robust contingency plans in place to mitigate any potential operational issues.

The Company is selling all production from the portfolio of power plants to state owned utilities, normally supported by government guarantees, under long term fixed price contracts with USD, MYR and ZAR being the predominant currencies. The long term contracted cash flows amounts to more than NOK 56 billion over the next 20 years.

Scatec Solar experienced some further delays of payments in Honduras during the second quarter, mainly due to the COVID-19 outbreak. During the third quarter, close to all outstanding amounts in Honduras has been repaid.

However, due to some further delays of payments in Ukraine, the proportionate share of overdue payments increased by NOK 18 million to NOK 129 million during the third quarter. Based on discussions with the customers, Scatec Solar expects the full amounts to be paid in the future, hence no allowance is recognised in the third quarter financials. The remaining delayed amounts are also secured by sovereign guarantees and the collection risk is therefore considered to be low. Please refer to note 16 in the Annual Report 2019 for further information on aging of trade receivables.

Scatec Solar's portfolio of 352 MW under construction is close to being completed. Delays in certain third-party services and deliveries have in addition to travel constraints and local regulations, impacted commissioning and testing of the new solar plants. No further material costs are expected to be associated with the delays.

The COVID-19 situation continues to impact some of the markets where Scatec Solar develops new projects, as some countries are still in lock-down or have restrictions on movement. A number of project development activities requires physical presence and the Company is expecting some temporary delays in maturing current backlog and pipeline projects.

Outlook

The COVID-19 pandemic is hitting the economy and demand for electricity in various countries differently. Scatec Solar's global business and operations have in general managed quite well despite the pandemic.

The negative impact of the COVID-19 on the solar demand forecasts for 2020 has partly been reversed, and the forecasts are back up for many countries according to Bloomberg New Energy Finance (BNEF). BNEF is expecting solar new build to grow up to 22% from 2019 to 2020. Short term, Scatec Solar might still be impacted by delays in renewable energy investments, while in the medium- and longer term, renewables are expected to see massive growth, with solar and wind covering more than 60% of the world's energy needs in 2050.

Scatec Solar has announced that it acquires SN Power from Norfund to strengthen its position as a leading developer and producer of renewable energy across technologies in markets with high growth and rapid adoption of green energy.

The acquisition forms an important part of Scatec Solar's broadened growth strategy, to become a global large-scale player in solar, hydro, wind and storage solutions, and an integrator of high-value infrastructure solutions.

Scatec Solar and SN Power have a unique and complementary portfolio of assets, geographical footprint and capabilities, and will together have access to a large project pipeline across solar, hydro, wind and storage.

In 2019, SN Power had proportionate revenues of NOK 1,776 million and EBITDA of NOK 1,149 million, and Scatec Solar and SN Power combined had proportionate revenues of NOK 8,107 million and EBITDA of NOK 2,720 million, corresponding to an EBITDA margin of 34%.

The acquisition is fully funded through a combination of cash available from Scatec Solar's balance sheet, a USD 200 million vendor note, a USD 150 million term loan and a USD 700 million acquisition financing from Nordea, DNB, BNP Paribas and Swedbank. The acquisition finance is expected to be refinanced through debt and equity within 12 months post closing of transaction. The transaction is expected to close in the first half of 2021. For more information about the transaction please visit www.scatecsolar.com.

Independent of this transaction, Scatec Solar's growth ambition remains firm with the Company targeting a portfolio of projects under construction and in operation of 4.5 GW by end 2021.

Consolidated statement of profit and loss

Profit and loss

NOK million	Q3 2020	Q2 2020	Q3 2019	YTD 2020	YTD 2019

Revenues	724	725	512	2,075	1,214
EBITDA	538	580	418	1,621	949
Operating profit (EBIT)	343	377	270	1,048	603
Net financial items	-333	-454	-183	-705	-464
Profit before income tax	10	-77	87	343	138
Profit/(loss) for the period	-24	-81	66	193	99
Profit/(loss) to Scatec Solar	-57	-98	31	80	-27
Profit/(loss) to non-controlling interests	33	17	36	113	126

Revenues

Revenues from power sales were up 37% compared to the same quarter last year. The increase in revenues is mainly explained by the grid connection of new plants in South Africa and Ukraine. For the remaining power plants, the change in production volume from last year is driven by regular operational and seasonal variations.

Net income from the joint venture investments in Brazil and Argentina is NOK -7 million (-20).

Operating profit

Following the enlarged portfolio of power producing assets, the profitability (EBITDA) has increased in both relative and absolute terms compared to the third quarter last year. The growth in operating expenses compared to third quarter last year is mainly explained by the increased asset base in operation.

Consolidated operating expenses amounted to NOK 187 million (94) in the third quarter. This consists of approximately NOK 97 million (53) for operation of existing power plants, NOK 21 million (22) for early stage development of new projects, NOK 9 million (9) related to construction and NOK 60 million (11) of corporate expenses (excluding eliminated intersegment charges).

Net financial items

NOK million	Q3 2020	Q2 2020	Q3 2019	YTD 2020	YTD 2019

Financial income	11	16	20	39	46
Financial expenses	-275	-301	-196	-826	-503
Foreign exchange gains/(loss)	-69	-169	-8	82	-7
Net financial items	-333	-454	-183	-705	-464

Financial expenses in the third quarter mainly consist of interest expenses, which comprise of interest on nonrecourse financing of NOK 248 million (158), and corporate funding of NOK 13 million (22). See note 4 and 5 for further information on financing.

The currency gains and losses of the group are primarily driven by changes in the NOK value of Scatec Solar ASA's shareholder loans to project companies which are provided in the respective projects' currencies. The quarter's net foreign currency loss increased from NOK 8 million in the third quarter of 2019 to NOK 69 million in the third quarter of 2020. The loss primarily constitutes unrealised losses on long term inter-company shareholders loans from Scatec Solar ASA to project companies and are driven by the strengthening of NOK against USD with approximately 3% compared with previous quarter.

Profit before tax and net profit

The Group recognised a tax expense of NOK 34 million (20) in the third quarter, corresponding to an effective tax rate of 340% (23%). The high effective tax rate for the quarter is driven by a relatively low profit before tax, combined with non-deductible transaction costs on the SN Power acquisition and withholding taxes paid on dividends received from subsidiaries. The effective tax rate fluctuates from quarter to quarter based on construction progress, currency effects and level of profit in in JVs and associates which are reported net after tax. The underlying tax rates in the companies in operation are in the range of 0% to 33%. In some markets, Scatec Solar receives special tax incentives intended to promote investments in renewable energy. For further details, refer to note 6.

Non-controlling interests (NCI) represent financial investors in solar power plants. The allocation of profits between NCI and Scatec Solar is impacted by the fact that NCI only have shareholdings in solar power plants, while Scatec Solar also carries the cost of project development, construction,

operation & maintenance and corporate functions. The allocation of profits is also impacted by unrealised currency gains and losses on shareholder loans from Scatec Solar ASA to project companies which are profits fully allocated to Scatec Solar.

Impact of foreign currency movements in the quarter

During the third quarter, NOK appreciated against all relevant currencies compared to the average rates for the second quarter. On a net basis this negatively affected consolidated revenues by approximately NOK 43 million compared to the previous quarter, while the net impact on net profit in the quarter was negative with approximately NOK 10 million.

Following the movements in currencies in the third quarter, the Group has recognised a foreign currency translation loss of NOK 78 (gain 220) in other comprehensive income related to the conversion of the subsidiaries' statements of financial position from the respective functional currencies to the Group's reporting currency.

Scatec Solar has not hedged the currency exposure on the expected cash distributions from the power plant companies.

Consolidated statement of financial position

Assets

NOK million	30 SEPTEMBER 2020	30 SEPTEMBER 2019

Property, plant and equipment	16,860	12,791
Other non-current assets	1,604	1,736
Total non-current assets	18,464	14,527
Other current assets	1,453	2,453
Cash and cash equivalents	4,002	3,455
Total current assets	5,455	5,908
Total assets	23,919	20,435

The 27% net increase of non-current assets is mainly driven by the new plants in South Africa, Ukraine and Malaysia. This is partly offset by depreciation of the operating power plants.

Other current assets decreased by 41% compared to third quarter 2019, mainly driven by working capital changes related to construction projects. The cash balance has increased with NOK 547 million since third quarter 2019, primarily following the private placement completed during the second quarter 2020. In addition, the Group had NOK 1,600 million in available undrawn credit facilities at the end of the third quarter. See note 5 for a detailed breakdown of cash balances as well as an overview of movement of cash at the Recourse Group level.

In the consolidated statement of financial position, the solar power plant assets are valued at the Group's cost, reflecting elimination of gross margins generated through the project development and construction phase. At the same time, the ring-fenced non-recourse debt held in power plant assets is consolidated at full value. These accounting principles reduce the consolidated book equity ratio.

Equity and liabilities

NOK million	30 SEPTEMBER 2020	30 SEPTEMBER 2019

Equity	5,485	3,581
Non-current non-recourse project financing	11,455	11,861
Other non-current liabilities	3,545	2,601
Total non-current liabilities	15,000	14,462
Current non-recourse project financing	1,545	527
Other current liabilities	1,888	1,864
Total current liabilities	3,433	2,392
Total liabilities	18,434	16,854
Total equity and liabilities	23,919	20,435
Book equity ratio	22.9%	17.5%

Total equity increased by NOK 1,904 million since third quarter 2019, mainly driven by the private placement during the second quarter 2020. The increased book equity ratio is mainly explained by the effect above, partly offset by increased total balance sheet value. The current and non-current non-recourse project finance debt increased by NOK 613 million from the third quarter 2019 following the completion of new solar plants.

The equity to capitalisation ratio for the Recourse Group 1) (excluding the non-recourse financed project entities) as defined in the corporate bond agreement was 91% at the end of the third quarter. See note 5 for more information on the corporate bond agreement.

Consolidated cash flow

Net cash flow from consolidated operating activities amounted to NOK 581 million (343) in the third quarter of 2020, compared to the EBITDA of NOK 538 million. The difference is primarily explained by changes in working capital, mainly related to power plants under construction.

Net cash flow from consolidated investing activities was NOK -128 million (-1,381), driven by further investment in new power plants as well as development of project pipeline and backlog.

Net cash flow from financing activities was NOK -523 million (2,114), driven by dividend payments, as well as interest and installments on loans.

Refer to note 5 for a detailed cash overview.

Proportionate cash flow to equity

Scatec Solar's "proportionate share of cash flow to equity" 1), is an alternative performance measure that seeks to estimate the Group's ability to generate funds for equity investments in new solar power plant projects and/or for shareholder dividends over time.

NOK million	Q3 2020	Q2 2020	Q3 2019	YTD 2020	YTD 2019

Power Production	134	135	121	374	258
Services	17	27	18	57	38
Development & Construction	-19	19	106	13	364
Corporate	-52	-23	-28	-99	-66
Total	80	158	218	345	594

The cash flow to equity in the Power Production segment is fairly stable compared to previous quarter.

The reduced cash flow to equity in Services reflects seasonal variations and a NOK 14 million catch up of service revenues last quarter.

The cash flow to equity in the D&C segment is driven by the portfolio of construction projects currently being executed.

The cash flow to equity for the Corporate segment primarily relates to operating expenses and payments of interest on the corporate bond. Movement from the second quarter is affected by transaction costs related to the contemplated acquisition of SN Power.

In the third quarter of 2020, the power plant companies have distributed a total of NOK 70 million to Scatec Solar ASA.

Risk and forward-looking statements

Scatec Solar has extensive policies and procedures in place as part of its operating system to actively manage risks related to the various parts of the Company's operations. Key policies are reviewed and approved by the Board of Directors annually. The regular follow up of these policies is carried out by Scatec Solar's Management Team, Finance, Legal and other relevant functions. For further information refer to the 2019 Annual Report (the Board of Directors' report and note 5).

Forward-looking statements reflect current views about future events and are, by their nature, subject to significant risk and uncertainties because they relate to events and depend on circumstances that will occur in the future. Although Scatec Solar believes that these assumptions were reasonable when made, the Group cannot assure that the future results, level of activity or performances will meet these expectations.

Project overview

Project stage	Q3 2020 Capacity 1) (MW)	Q2 2020 Capacity 1) (MW)
In operation	1,552	1,505
Under construction	352	399
Project backlog 2)	520	520
Project pipeline 2)	6,520	5,620

Projects under construction and backlog 1)

Project backlog is defined as projects with a secure off-take agreement and assessed to have more than 90% likelihood of reaching financial close and subsequent realisation.

The table below shows the projects under construction and in backlog with details on capital expenditure and annual production. For extensive information about the projects under construction and in backlog, refer to our website www.scatecsolar.com/asset-portfolio-overview/.

Location	Capacity (MW)	Currency	CAPEX (100%, million)	Annual production (100%, GWH)	Debt leverage	SSO economic interest

In operation	1,552	NOK 3)	20,396	3,160	72%	59%

Under construction
Ukraine portfolio	235	EUR	212	285	66%	95%
Guanizuil, Argentina	117	USD	103	310	60%	50%
Total under construction	352	NOK 3)	3,306	595		80%
Backlog
Tunisia	360	USD	240	903	70%	65%
Ukraine	65	EUR	74	65	70%	65%
Bangladesh	62	USD	68	86	70%	65%
Mali	33	EUR	50	60	75%	64%
Total backlog	520	NOK 3)	4,287	1,114		65%
Total	2,424	NOK 3)	27,985	4,896		63%

Total annual revenues from the 2,424 MW in operation, under construction and in backlog is expected to reach about NOK 4,200 million (on 100% basis) based on 20-25-year Power Purchase Agreements (PPAs). Scatec Solar will build, own and operate all power plants in the project backlog and pipeline.

1) Status per reporting date.

2) See Other Definitions for definition.

3) All exchange rates to NOK are as of 30 September 2020.

Under construction

Project	Capacity (MW)
Progressovka, Ukraine	148
Guanizuil, Argentina	117
Chigirin, Ukraine	55
Kamianka, Ukraine	32
Total	352

Scatec Solar's project portfolio under construction is close to completion. Due to the COVID-19 outbreak, delays in certain third party services and deliveries has in addition to travel constraints and local regulations, impacted completion of high voltage connection and hence grid connection, commissioning and testing of the new solar plants. The final impact on completion dates are still uncertain, however the Company's current estimate is that all power plants will reach commercial operation dates in the first quarter 2021. The revised timeline is not expected to impact the tariff levels obtained for these power plants.

Backlog

There has been no movements in the project backlog during the third quarter, leaving the backlog at 520 MW.

The COVID-19 situation is in general impacting the markets in which Scatec Solar develops projects. Many countries are still in lock-down, or with restrictions on movement, and international travel is still very limited. This will to a varying degree impact project development as certain activities requires physical presence. The progress that can be made for projects in backlog and pipeline is therefore impacted and delays in maturing some of these projects are expected.

Tunisia, 360 MW

In December 2019, Scatec Solar was awarded three solar power plant projects in Tunisia totalling 360 MW. The three projects will hold 20 years of PPAs with Société Tunisienne de l'Electricité et du Gaz (STEG).

Scatec Solar will be the lead equity investor in the projects. The company will also be the Engineering, Procurement and Construction (EPC) provider and provide Operation & Maintenance as well as Asset Management services to the power plants.

Ukraine, 65 MW

In Ukraine, the government is evaluating the current feed-in tariff scheme and working on the transition to a tender scheme for renewable energy.

The 65 MW Kherson project is situated at a very good site, is fully developed and ready to be built from a permitting perspective. The project is well positioned to participate in upcoming tenders, but an auction scheme for solar projects have not yet been communicated.

Bangladesh, 62 MW

The Nilphamari project was moved into backlog in 2019. The power plant will hold a 20 years PPA with the Bangladesh Power Development Board (BPDB). Total project costs are estimated to USD 78 million, expected to be funded with 75% debt and 25% equity. Lenders have been selected and are mandated.

Scatec Solar will finance, construct, own and operate the project. The project is being developed with a local development partner and with FMO, the Dutch development bank.

Mali, 33 MW

In July 2015, Scatec Solar and development partners, International Finance Corporation (IFC) and Power Africa 1, signed a 25-year PPA with Energie du Mali (EDM) for the Segou project. IFC and African Development Bank (AfDB) will provide the non-recourse project finance for the project.

During 2019, the project signed an amendment to the Concession Agreement with the Ministry of Finance and the Ministry of Energy and the amendment to the PPA with EDM. The main remaining step is to finalise agreements with lenders. Scatec Solar will build, own and operate the solar power plant with a 64% shareholding. IFC Infraventures and Africa Power will hold the remaining part of the equity.

In August 2020, there was a military coup in Mali and the President and the Prime Minister were detained. Since then, a new transitional government has been formed, the former President and Prime Minister have been released, the international society has approved the new transitional government and economic sanctions from the ECOWAS states have been lifted. This obviously further delays the project, but the work to finalize project documents is continuing.

Pipeline

Location	Q3 2020 Capacity (MW)	Q2 2020 Capacity (MW)

Latin America	1,234	1,000
Africa and the Middle East	2,516	2,615
Europe & Central Asia	430	430
Rest of Asia	2,340	1,575
Total pipeline	6,520	5,620

In addition to the projects in backlog Scatec Solar holds a solid pipeline of projects totalling 6,520 MW. The pipeline increased by 900 MW over the last quarter with new projects added in India, Brazil and Vietnam.

Historically, about 50% of projects in pipeline have been realised. The pipeline projects are in different stages of development and maturity, but they are all typically in markets with an established government framework for renewables and for which project finance is available (from commercial banks or multilateral development banks). The project sites have typically been secured and Scatec Solar is in a position to participate in bilateral negotiations for a long-term power sales agreement with an off-taker, feed-in- tariff schemes, or tender processes.

Latin America (1,234 MW)

Scatec Solar's development efforts in Latin America is now mainly focused on Brazil, where Scatec Solar is partnering with Equinor. Selected opportunities are also being pursued in other markets.

Brazil is a well-established market for renewable energy with about 2.7 GW of utility scale solar capacity installed. Scatec Solar has secured rights to a number of projects in Brazil and is seeking to secure power purchase agreements through upcoming tenders and negotiations with corporate off-takers.

Africa and the Middle East (2,516 MW)

Scatec Solar holds sites representing more than 1.0 GW ready to be bid in upcoming tender rounds in South Africa. The new integrated Resource Plan has been launched and based on this a new tender ("round 5") under the REIPPP Programme is expected to be launched during first half of 2021. Further, the Department of Mineral Resource and Energy has launched a Risk Mitigation Power Procurement Programme in response to the current critical energy supply situation in the country. The Department to procure 2 GW of dispatchable power under this risk mitigation process and the tender is expected to be conducted in the fourth quarter 2020.

In addition, Scatec Solar is developing a broad pipeline of projects across a number of markets, including Egypt, Nigeria, Cameroon, Tunisia and several other countries on the continent. Some of the projects are based on bi-lateral negotiations with governments and state-owned utilities, while Scatec Solar is also selectively participating in tenders.

Scatec Solar has exited its participation in the development of the Rumuruti project in Kenya during the quarter. Further, due to the economic consequences of the Covid-19 pandemic, Angola has temporarily halted its initiative to develop large-scale renewable energy projects. These project opportunities have been removed from the pipeline.

Through its Release concept, Scatec Solar has also increased its efforts in securing agreements with private companies and Non-Governmental Organisations, like the UN. These are typically smaller projects in the range of 5 to 20 MW and Scatec Solar is currently actively working on a portfolio of about 300 MW of this type of projects on the African continent.

Europe and Central Asia (430 MW)

Scatec Solar is currently pursuing project opportunities in Ukraine, Poland and Uzbekistan in Europe and Central Asia.

Ukraine is committed to integrate with the EU energy system with ongoing electricity market reforms. Scatec Solar is working on projects in Ukraine to be realised under the FiT system or to participate in expected auctions likely to be implemented after 2020.

Rest of Asia (2,340 MW)

Malaysia, Vietnam, Bangladesh, Pakistan and India are markets Scatec Solar currently is focused on in South and South East Asia.

In Malaysia it is expected that the new government will maintain the same level of ambition for the renewable energy sector as before.

Scatec Solar is developing several projects in Vietnam and the pipeline stands at 930 MW. These are projects that fit well with the stated objectives of the authorities in terms of the future implementation of renewable energy in the country.

In Bangladesh, Scatec Solar is working on a project development portfolio of about 100 MW. These projects are partly based on bi-lateral negotiations and partly related to tender processes issued by the authorities.

In Pakistan, the 150 MW project portfolio in Sindh was during first quarter 2020 awarded a "costs plus tariff" of 36.7 USD/MWh by the National Energy Power Regulatory Authority (NEPRA). This is a reduction in the tariff level from last award. Scatec Solar and its local partner, Nizam Energy, are now working to secure financing and preparing construction of this project.

India is a new market for Scatec Solar, and is expected to be one of the countries with highest renewable energy growth in the coming years. Expected investment returns have improved over the last couple of years and India is therefore becoming an attractive renewables market. Scatec Solar is working on 900 MW of project opportunities in the country.

Proportionate financials Break down of Power Production segment Key financials

Q3 2020

NOK million	Czech Republic	South Africa Round 1/2 1)	Honduras	Jordan	Brazil	Malaysia	Egypt	Ukraine	Mozambique	South Africa Round IV 2)	Other 3)	Total

Revenues	45	76	29	28	20	75	84	49	9	40	4	457
OPEX	-3	-12	-5	-3	-4	-9	-14	-3	-2	-9	-15	-78
EBITDA	42	65	24	25	16	66	71	45	7	31	-11	379
EBITDA margin	93%	85%	84%	90%	81%	88%	84%	93%	73%	77%	-283%	83%
Net interest expenses 4)	-5	-24	-3	-7	-4	-29	-27	-8	-4	-17	-1	-128
Normalised loan repayments 4)	-8	-17	-6	-8	-2	-28	-8	-17	-3	-	-1	-99
Normalised income tax payments 4)	-5	-7	-	-1	-1	-	-5	-3	-	-	3	-19
Cash flow to equity	24	17	15	9	10	9	30	17	-	14	-9	134
SSO economic interest	100%	45%	51%	62%	44%	100%	51%	91%	53%	46%
Net production (GWh)	8	42	22	18	35	66	130	29	8	69	2	430

1) Kalkbult, Linde and Dreunberg projects.

2) Upington projects.

3) Includes Rwanda and Release.

4) See Alternative Performance Measures appendix for definition.

Q3 2019

NOK million	Czech Republic	South Africa Round 1/2 1)	Honduras	Jordan	Brazil	Malaysia	Egypt	Ukraine	Mozambique	South Africa Round IV 2)	Other 3)	Total

Revenues	41	83	29	28	18	77	50	7	7	-	4	343
OPEX	-2	-12	-4	-3	-7	-6	-6	-1	-2	-	-7	-52
EBITDA	39	71	25	25	11	71	44	6	5	-	-3	291
EBITDA margin	94%	86%	86%	89%	60%	92%	87%	83%	73%	-	-67%	85%
Net interest expenses 4)	-5	-28	-2	-7	-3	-28	-16	-1	-	-	-1	-89
Normalised loan repayments 4)	-7	-16	-5	-6	-5	-22	-1	-	-	-	-	-64
Normalised income tax payments 4)	-5	-7	-	-1	-	-3	-4	-1	-	-	-	-18
Cash flow to equity	22	20	17	11	3	18	23	5	5	-	-4	121
SSO economic interest	100%	45%	51%	62%	44%	100%	51%	91%	53%	-
Net production (GWh)	8	42	22	19	31	69	89	5	8		2	295

1) Kalkbult, Linde and Dreunberg projects.

2) Upington projects.

3) Includes Rwanda.

4) See Alternative Performance Measures appendix for definition.

YTD 2020

NOK million	Czech Republic	South Africa Round 1/2 1)	Honduras	Jordan	Brazil	Malaysia	Egypt	Ukraine	Mozambique	South Africa Round IV 2)	Other 3)	Total

Revenues	116	233	89	79	60	256	248	95	34	85	11	1,306
OPEX	-9	-34	-13	-16	-12	-30	-36	-9	-8	-20	-36	-222
EBITDA	107	199	76	62	48	227	212	86	27	65	-25	1,084
EBITDA margin	93%	85%	85%	79%	79%	88%	85%	91%	77%	76%	-224%	83%
Net interest expenses 4)	-14	-76	-10	-22	-14	-84	-89	-18	-11	-39	-3	-381
Normalised loan repayments 4)	-25	-52	-19	-24	-6	-86	-26	-30	-9	-	-2	-280
Normalised income tax payments 4)	-12	-20	-	-1	-1	-5	-14	-6	-1	2	7	-50
Cash flow to equity	57	51	46	15	26	52	83	32	6	28	-23	374
SSO economic interest	100%	45%	51%	62%	44%	100%	51%	91%	53%	46%
Net production (GWh)	21	123	65	50	98	219	368	58	26	153	5	1,185

1) Kalkbult, Linde and Dreunberg projects.

2) Upington projects.

3) Includes Rwanda and Release.

4) See Alternative Performance Measures appendix for definition.

YTD 2019

NOK million	Czech Republic	South Africa Round 1/2 1)	Honduras	Jordan	Brazil	Malaysia	Egypt	Ukraine	Mozambique	South Africa Round IV 2)	Other 3)	Total

Revenues	104	244	82	74	59	144	69	7	7	-	8	798
OPEX	-7	-32	-12	-8	-17	-14	-9	-1	-2	-	-25	-127
EBITDA	97	212	70	66	41	130	60	6	5	-	-16	671
EBITDA margin	93%	87%	85%	89%	70%	90%	87%	83%	73%	-	-204%	84%
Net interest expenses 4)	-14	-82	-8	-21	-16	-51	-21	-1	-	-	-2	-215
Normalised loan repayments 4)	-21	-48	-15	-19	-11	-45	-1	-	-	-	-1	-161
Normalised income tax payments 4)	-10	-21	-	-1	-	-3	-5	-1	-	-	3	-38
Cash flow to equity	51	61	46	25	16	31	33	5	5	-	-16	258
SSO economic interest	100%	45%	51%	62%	44%	100%	51%	91%	53%	-
Net production (GWh)	21	125	65	50	83	135	129	5	8	-	5	626

1) Kalkbult, Linde and Dreunberg projects.

2) Upington projects.

3) Includes Rwanda.

4) See Alternative Performance Measures appendix for definition.

FY 2019

NOK million	Czech Republic	South Africa Round 1/2 1)	Honduras	Jordan	Brazil	Malaysia	Egypt	Ukraine	Mozambique	South Africa Round IV 2)	Other 3)	Total

Revenues	118	350	105	92	101	228	127	12	23	-	7	1,163
OPEX	-10	-40	-17	-11	-25	-27	-21	-2	-6	-	-29	-188
EBITDA	108	309	89	81	76	201	106	10	17	-	-22	975
EBITDA margin	92%	88%	84%	88%	75%	88%	83%	82%	75%	-	-	84%
Net interest expenses 4)	-19	-112	-14	-29	-20	-80	-43	-7	-8	-	-2	-333
Normalised loan repayments 4)	-28	-65	-21	-26	-14	-67	-4	-3	-	-	-1	-229
Normalised income tax payments 4)	-10	-35	-	-1	-2	-6	-6	1	-	-	8	-51
Cash flow to equity	51	97	54	26	40	48	53	1	9	-	-17	362
SSO economic interest	100%	45%	51%	62%	44%	100%	51%	91%	53%	-
Net production (GWh)	23	177	83	62	118	205	225	8	18	-	7	926

1) Kalkbult, Linde and Dreunberg projects

2) Upington projects

3) Includes Rwanda

4) See Alternative Performance Measures appendix for definition

Financial position and working capital breakdown Proportionate financials

30 September 2020

	Solar plants in operation										Solar plants under construction
NOK million	Czech repub.	South Africa Round 1/2	Rwa nda	Hon duras		Jordan Malaysia	Brazil	Egypt	Mozam bique	Ukraine	South Africa Round IV	Malaysia	Ukraine	Argentina	Total
Project equity 1)	160	-6	20	746	227	468	209	303	71	298	264	96	1,059	221	4,136
Total assets	590	1,110	96	968	751	2,809	545	2,492	406	880	1,343	464	2,393	598	15,445
PP&E	471	917	88	816	598	2,714	482	1,959	312	732	1,221	431	2,141	557	13,440
Cash	67	129	5	85	123	310	31	331	58	19	56	6	23	22	1,264
Gross interest bearing debt 2)	356	866	68	180	451	2,117	299	1,618	259	538	982	268	432	325	8,759
Net interest bearing debt 2)	289	737	62	95	328	1,807	268	1,286	201	520	927	262	409	302	7,495
Net working capital 2)	-30	-60	-4	25	-62	-460	-15	-182	11	-110	-10	-25	-989	-340	-2,249
SSO economic interest	100%	45%	54%	51%	62%	100%	44%	51%	53%	77%	46%	100%	95%	50%

1) See Other definitions appendix for definition.

2) See Alternative Performance Measures appendix for definition.

Bridge from proportionate to consolidated financials

30 September 2020

NOK million	Total proportionate Solar plants	Residual ownership interest	Less equity consolidated entities	PP overhead, D&C, Services, Corporate, eliminations	Consolidated

Project equity 1)	4,136	2,019	-919	250	5,485
Total assets	15,445	8,836	-2,442	2,080	23,919
PP&E-in solar projects	13,440	7,382	-2,217	-1,959	16,646
Cash	1,264	877	-115	1,976	4,002
Gross interest bearing debt 2)	8,759	5,575	-1,334	747	13,748
Net interest bearing debt 2)	7,495	4,698	-1,218	-1,229	9,746
Net-working capital 2)	-2,249	-797	715	483	-1,850

1) See Other definitions appendix for definition.

2) See Alternative Performance Measures appendix for definition.

Condensed interim financial information

Interim consolidated statement of profit or loss

NOK million	NOTES	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019

Revenues	2	731	532	2,083	1,245	1,810
Net income/(loss) from JVs and associated companies	2	-7	-20	-8	-31	-28
Total revenues and other income		724	512	2,075	1,214	1,783

Personnel expenses	2	-71	-42	-184	-113	-163
Other operating expenses	2	-116	-52	-270	-152	-234
Depreciation, amortisation and impairment	2,3	-195	-148	-573	-346	-512
Operating profit (EBIT)		343	270	1,048	603	874
Interest and other financial income	4	11	20	39	46	66
Interest and other financial expenses	4	-275	-196	-826	-503	-744
Net foreign exchange gain/(losses)	4	-69	-8	82	-7	-13
Net financial expenses		-333	-183	-705	-464	-690
Profit/(loss) before income tax		10	87	343	138	184
Income tax (expense)/benefit	6	-34	-20	-150	-39	-29
Profit/(loss) for the period		-24	66	193	99	155
Profit/(loss) attributable to:
Equity holders of the parent		-57	31	80	-27	-39
Non-controlling interests		33	36	113	126	194
Basic earnings per share (NOK) 1)		-0.43	0.27	0.61	-0.24	-0.31
Diluted earnings per share (NOK) 1)		-0.43	0.27	0.60	-0.24	-0.31

1) Based on average 131.8 million shares outstanding for the purpose of earnings per share and average 133.6 million shares outstanding for the purpose of diluted earnings per share.

Interim consolidated statement of comprehensive income

NOK million	NOTES	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019

Profit/(loss) for the period		-24	66	193	99	155

Other comprehensive income:
Items that may subsequently be reclassified to profit or loss
Net movement of cash flow hedges		72	-102	-407	-304	-233
Income tax effect	6	-19	25	102	76	58
Foreign currency translation differences		-78	220	61	187	12
Net other comprehensive income to be reclassified to profit or loss in subsequent periods		-25	142	-245	-42	-162

Total comprehensive income for the period net of tax		-49	209	-51	57	-7
Attributable to:
Equity holders of the parent		-71	194	3	35	-117
Non-controlling interests		22	15	-55	22	109

Interim consolidated statement of financial position

NOK million	Notes	As of 30 September 2020	As of 31 December 2019

Assets
Non-current assets
Deferred tax assets	6	768	781
Property, plant and equipment – in solar projects	3	16,646	15,180
Property, plant and equipment – other	3	214	221
Goodwill		25	24
Investments in JVs and associated companies		651	728
Other non-current assets		160	149
Total non-current assets		18,464	17,083
Current assets
Trade and other receivables		781	461
Other current assets		672	1,211
Cash and cash equivalents	5	4,002	2,824
Total current assets		5,455	4,495
Total assets		23,919	21,578

Interim consolidated statement of financial position

NOK million	Notes	As of 30 September 2020	As of 31 December 2019

Equity and liabilities
Equity
Share capital		3	3
Share premium		5,078	3,108
Total paid in capital		5,082	3,111
Retained earnings		-150	-134
Other reserves		-78	-2
Total other equity		-228	-136
Non-controlling interests		632	663
Total equity		5,485	3,640
Non-current liabilities
Deferred tax liabilities	6	354	437
Non-recourse project financing	4	11,455	12,228
Bonds	5	747	745
Financial liabilities	4	667	320
Other non-current liabilities		1,777	1,460
Total non-current liabilities		15,000	15,190
Current liabilities
Trade and other payables		806	888
Income tax payable	6	24	92
Non-recourse project financing	4	1,545	837
Financial liabilities	4	131	31
Other current liabilities		927	902
Total current liabilities		3,433	2,750
Total liabilities		18,434	17,939
Total equity and liabilities		23,919	21,578

Oslo, 15 October 2020

The Board of Directors of Scatec Solar ASA

Interim consolidated statement of changes in equity

				Other reserves
NOK million	Share capital	Share premium	Retained earnings	Foreign currency translation	Hedging reserves	Total	Non-controlling interests	Total equity
						1,884		2,475
At 1 January 2019	3	1,795	8	123	-44		591
Profit for the period	-	-	-27	-	-	-27	126	99
Other comprehensive income	-	-	-	176	-113	62 35	-104	-42 57
Total comprehensive income Share-based payment	- -	- 5	-27 -	176 -	-113 -	5	22 -	5
Share capital increase	-	1,330	-	-	-	1,330	-	1,330
Transaction cost, net after tax	-	-23	-	-	-	-23	-	-23
Share purchase program	-	-1	-	-	-	-1	-	-1
Dividend distribution	-	-	-108	-	-	-108	-150	-258
Purchase of NCIs shares in group companies	-	-	-1	-	-	-1	-3	-4
At 30 September 2019	3	3,106	-128	299	-157	3,122	460	3,582

At 1 October 2019	3	3,106	-128	299	-157	3,122	460	3,582
Profit for the period	-	-	-12	-	-	-12	66	56
Other comprehensive income	-	-	3	-171	27	-139	19	-120
Total comprehensive income	-	-	-9	-171	27	-152	85	-64
Share-based payment	-	2	-	-	-	2	-	2
Dividend distribution	-	-	-	-	-	-	-30	-30
Purchase of NCIs shares in group companies	-	-	3	-	-	3	-	3
Capital increase from NCI	-	-	-	-	-	-	147	147
At 31 December 2019	3	3,108	-134	128	-130	2,975	663	3,640
						2,975		3,640
At 1 January 2020 Profit for the period	3 -	3,108 -	-134 80	128 -	-130 -	80	663 113	193
Other comprehensive income	-	-	-1	94	-170	-77	-168	-245
Total comprehensive income	-	-	79	94	-170	3	-55	-51
Share-based payment	-	10	-	-	-	10	-	10
Share capital increase 1)	-	1,994	-	-	-	1,994	-	1,994
Transaction cost, net after tax	-	-32	-	-	-	-32	-	-32
Share purchase program	-	-1	-	-	-	-1	-	-1
Dividend distribution	-	-	-131	-	-	-131	-148	-280
Sale of shares in group companies to NCIs	-	-	35	-	-	35	-	35
Capital increase from NCI	-	-	-	-	-	-	170	170
At 30 September 2020	3	5,078	-150	222	-300	4,853	632	5,485

1) In May 2020 the group increased the share capital with NOK 1,994 million, whereof NOK 1,934 million net of transaction cost of NOK 32 million after tax was raised through a private placement, and NOK 26 million was share option program.

Interim consolidated statement of cash flow

NOK million	NOTES	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019

Cash flow from operating activities
Profit before taxes		10	87	343	138	184
Taxes paid	6	-16	-2	-148	-42	-61
Depreciation and impairment	3	195	148	573	346	512
Proceeds from disposal of fixed assets	3	-	-	-	6	6
Net income from associated companies		7	20	8	31	28
Interest and other financial income	4	-11	-20	-39	-46	-66
Interest and other financial expenses	4	275	196	826	503	744
Unrealised foreign exchange (gain)/loss	4	69	8	-82	7	13
Increase/(decrease) in other assets and liabilities		54	-92	29	-720	501
Net cash flow from operating activities		581	343	1,510	224	1,860
Cash flow from investing activities
Interest received	4	11	16	39	58	76
Net investments in property, plant and equipment	3	-139	-1,275	-1,518	-3,728	-6,502
Net investment in associated companies		-	-122	64	-77	-14
Net cash flow from investing activities		-128	-1,381	-1,414	-3,747	-6,439
Cash flow from financing activities
Net proceeds from NCI shareholder financing 1)		32	53	221	103	307
Interest paid		-147	-162	-591	-522	-740
Net proceeds and repayment from non-recourse project and other external financing		-237	975	-216	3,053	3,646
Share capital increase		-	1,290	1,954	1,300	1,307
Dividends paid to equity holders of the parent company and
non-controlling interests 2)		-169	-42	-280	-251	-288
Net cash flow from financing activities		-523	2,114	1,089	3,683	4,232
Net increase/(decrease) in cash and cash equivalents		-69	1,076	1,184	160	-348
Effect of exchange rate changes on cash and cash equivalents 3)		2	-3	-7	-8	-131
Cash and cash equivalents at beginning of the period		4,069	2,375	2,824	3,303	3,303
Cash and cash equivalents at end of the period		4,002	3,455	4,002	3,455	2,824

1) Proceeds from non-controlling interest's shareholder financing include both equity contributions and shareholder loans.

2) The dividend declared by the Board of Directors was paid out to the shareholders in August, totalling 131 NOK million.

3) See note 5 Cash, cash equivalents and corporate funding.

Notes to the condensed interim consolidated financial statements

Note 1 Organisation and basis for preparation

Corporate information

Scatec Solar ASA is incorporated and domiciled in Norway. The address of its registered office is Askekroken 11, NO-0277 Oslo, Norway. Scatec Solar ASA was established on 2 February 2007.

Scatec Solar ASA ("the Company"), its subsidiaries and investments in associated companies ("the Group" or "Scatec Solar") is a leading independent solar power producer. The Company is pursuing an integrated business model across the complete life cycle of utility-scale solar photovoltaic (PV) power plants including project development, financing, construction, ownership and operation and maintenance.

The condensed interim consolidated financial statements for the third quarter 2020 were authorised by the Board of Directors for issue on 15 October 2020.

Basis of preparation

These condensed interim consolidated financial statements are prepared in accordance with recognition, measurement and presentation principles consistent with International Financing Reporting Standards as adopted by the European Union ("IFRS") for interim reporting under International Accounting Standard ("IAS") 34 Interim Financial Reporting. These condensed interim consolidated financial statements are unaudited.

These condensed interim consolidated financial statements are condensed and do not include all of the information and notes required by IFRS for a complete set of consolidated financial statements. These condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements.

The accounting policies adopted in the preparation of the condensed interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for 2019.

The functional currency of the companies in the Group is determined based on the nature of the primary economic environment in which each company operates. The functional currency of the parent company Scatec Solar ASA and the presentation currency of the Group is Norwegian kroner (NOK). All amounts are presented in NOK million unless otherwise stated.

As a result of rounding adjustments, the figures in some columns may not add up to the total of that column.

Significant estimates and judgements

The preparation of condensed interim consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.

Judgements

In the process of applying the Group's accounting policies, management make judgements of which the following have the most significant effect on the amounts recognised in the condensed interim financial statements:

Consolidation of power plant companies

Scatec Solar's value chain comprises all downstream activities such as project development, financing, construction and operations, as well as having an asset management role through ownership of the solar power plants. Normally Scatec Solar enters into partnerships for the shareholding of the power plant companies owning the power plants. To be able to utilise the business model fully, Scatec Solar seeks to obtain operational control of the power plant companies. Operational control is obtained through governing bodies, shareholder agreements and other contractual arrangements. Other contractual arrangements may include Scatec Solar's role as the developer of the project, EPC provider (construction), operation and maintenance service provider and asset management service provider.

When assessing whether Scatec Solar controls a power plant company as defined by IFRS 10 Consolidated Financial Statements, the Group's roles and activities are analysed in line with the requirements and definitions in IFRS 10.

During third quarter 2020 no new power plant companies have been included in the consolidated financial statements. Refer to note 3 of the 2019 annual report for further information on judgements, including control assessments made in previous years.

Estimates and assumptions

The estimates and underlying assumptions are reviewed on an ongoing basis, considering the current and expected future market conditions. Changes in accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Seasonality in operations

Interim period results are not necessarily indicative of results of operations or cash flows for an annual period. The Group's operating results are impacted by external factors, such as weather conditions. The power production at the PV solar parks is directly impacted by seasonal changes in solar irradiance which is normally at its highest during the summer months. This effect is to a certain degree offset in the consolidated revenues due to the fact that the Group operates PV solar parks on both the northern and southern hemisphere.

Note 2 Operating segments

Operating segments align with internal management reporting to the Group's chief operating decision maker, defined as the Group management team. The operating segments are determined based on differences in the nature of their operations, products and services.

Scatec Solar manages its operations in three segments; Power Production (PP), Services and Development & Construction (D&C).

From January 2020 the group has reorganised its segment structure so that the Group's Operations and Maintenance services and Asset Management services are reported combined in the new segment Services. Earlier these operations were reported in the segments Operations & Maintenance and Power Production respectively. The comparative figures for 2019 in the tables below are restated with the new segment structure.

Financing and operation of solar power plants is ring-fenced in power plant companies with a non-recourse project finance structure - where Scatec Solar contributes with the required equity, either alone or together with co-investors.

The management team assesses the performance of the operating segments based on a measure of gross profit and operating profit; hence interest income/expense is not disclosed per segment.

Power Production

The Power Production segment manages the Group's power producing assets and derives its revenue from the production and sale of solar generated electricity based on long-term Power Purchase Agreements or feed-in-tariffs.

Finance and operation of the plants is ring-fenced in power plant companies with a non-recourse finance structure. This implies that the project debt is only secured and serviced by project assets and the cash flows generated by the project, and that there is no obligation for project equity investors to contribute additional funding in the event of a default. Free cash flows after debt service are distributed from these power plant companies to Scatec Solar, and any other project equity investors in accordance with the shareholding and the terms of the finance documents.

Services

The Services segment comprises Operations & Maintenance (O&M) and Asset Management services provided to solar power plants where Scatec Solar has economic interest. O&M revenues are generated on the basis of fixed service fees with additional profit-sharing arrangements. Asset Management services typically include financial reporting to sponsors and lenders, regulatory compliance, environmental and social management, as well as contract management on behalf of the power plant companies.

Development and Construction

The Development and Construction segment derives its revenue from the sale of development rights and construction services to power plant companies set up to operate the Group's solar power plants. These transactions are primarily made with companies that are under the control of the Group and hence are being consolidated. Revenues from transfer of development rights are recognised upon the transfer of title.

Revenues from construction services are based on fixed price contracts and are accounted for using the percentage of completion method.

Corporate

Corporate consists of the activities of corporate services, management and group finance.

No segments have been aggregated to form these reporting segments. Revenues from transactions between the D&C, Services and PP segments, where Scatec Solar is deemed to hold a controlling interest, are presented as internal revenues in the segment reporting and eliminated in the consolidated statement of profit or loss. These transactions are based on international contract standards and terms negotiated at arm's length with lenders and co-investors in each power plant company.

Use of proportionate financials

The segment financials are reported on proportionate basis. With proportionate financials Scatec Solar reports its share of revenues, expenses, profits and cash flows from its subsidiaries without eliminations based on Scatec Solar's economic interest in the subsidiaries. The Group introduced SSO Proportionate Financials as the Group is of the opinion that this method improves earnings visibility. Proportionate financials are further described in the APM section of this report. A reconciliation between the segments proportionate financials and the groups consolidated financials is included in the tables below.

Q3 2020

	Proportionate financials
NOK million	Power Production	Services	Development & construction	Corporate	Total	Residual ownership interests 1)	Eliminations 2)	Consolidated financials
External revenues	457	-	5	2	463	320	-54	731
Internal revenues	-	60	25	7	93	37	-129	-
Net income from JV and associates	-	-	-	-	-	-	-7	-7
Total revenues and other income	457	60	30	9	556	357	-189	724
Cost of sales	-	-	-26	-	-25	-31	57	-
Gross profit	457	60	4	9	530	326	-132	724
Personnel expenses	-9	-18	-21	-24	-71	-3	4	-71
Other operating expenses	-69	-21	-10	-40	-140	-55	80	-116
EBITDA	379	22	-27	-54	319	267	-48	538
Depreciation and impairment	-149	1	-7	-5	-161	-111	76	-195
Operating profit	230	21	-33	-59	159	156	28	343

1) Residual ownerships interests share of the proportionate financials in subsidiaries where SSO do not have 100% economic interest.

2) Eliminations made in the preparation of the groups IFRS consolidated financials.

Q3 2019

			Proportionate financials
NOK million	Power Production	Services	Development & construction	Corporate	Total	Residual ownership interests 1)	Eliminations 2)	Consolidated financials

External revenues	343	-	-	-	343	222	-34	532
Internal revenues	-	49	1,121	9	1,179	18	-1,197	-
Net income/(loss) from JV and associates	-	-	-	-	-	-	-20	-20
Total revenues and other income	343	49	1,121	9	1,522	240	-1,251	512
Cost of sales	-	-	-958	-	-958	-36	994	-
Gross profit	343	49	163	9	565	204	-257	512
Personnel expenses	-5	-12	-13	-14	-44	-	2	-42
Other operating expenses	-47	-14	-18	-9	-87	-23	57	-52
EBITDA	291	23	133	-14	433	182	-197	418
Depreciation and impairment	-107	-1	-7	-1	-116	-79	47	-148
Operating profit (EBIT)	184	22	125	-16	317	103	-150	270

1) Residual ownerships interests share of the proportionate financials in subsidiaries where SSO do not have 100% economic interest.

2) Eliminations made in the preparation of the groups IFRS consolidated financials.

YTD 2020

			Proportionate financials
NOK million	Power Production	Services	Development & construction	Corporate	Total	Residual ownership interests 1)	Eliminations 2)	Consolidated financials

External revenues	1,306	-	11	4	1,321	847	-86	2,083
Internal revenues	-	186	816	24	1,026	97	-1,122	-
Net income/(loss) from JV and associates	-	-	-	-	-	-	-8	-8
Total revenues and other income	1,306	186	827	28	2,347	944	-1,216	2,075
Cost of sales	-	-	-724	-	-723	-76	800	-
Gross profit	1,306	186	103	28	1,624	867	-416	2,075
Personnel expenses	-20	-56	-60	-52	-188	-2	7	-184
Other operating expenses	-202	-58	-34	-60	-354	-145	229	-270
EBITDA	1,084	72	10	-84	1,082	720	-181	1,621
Depreciation and impairment	-417	-2	-21	-14	-455	-301	183	-573
Operating profit (EBIT)	667	70	-11	-98	627	419	2	1,048

1) Residual ownerships interests share of the proportionate financials in subsidiaries where SSO do not have 100% economic interest. 2) Eliminations made in the preparation of the groups IFRS consolidated financials.

YTD 2019

			Proportionate financials
NOK million	Power Production	Services	Development & construction	Corporate	Total	Residual ownership interests 1)	Eliminations 2)	Consolidated financials

External revenues	798	-	2	-	800	563	-118	1,245
Internal revenues	-	120	3,755	24	3,899	8	-3,907	-
Net income/(loss) from JV and associates	-	-	-	-	-	-	-31	-31
Total revenues and other income	798	120	3,757	24	4,699	571	-4,055	1,214
Cost of sales	-	-	-3,219	-	-3,218	-94	3,312	-
Gross profit	798	120	538	24	1,482	477	-743	1,214
Personnel expenses	-15	-31	-40	-35	-121	6	2	-113
Other operating expenses	-112	-41	-43	-28	-223	-53	123	-152
EBITDA	671	49	457	-39	1,136	430	-618	949
Depreciation and impairment	-257	-3	-25	-4	-288	-210	152	-346
Operating profit (EBIT)	414	46	431	-45	848	221	-466	603

1) Residual ownerships interests share of the proportionate financials in subsidiaries where SSO do not have 100% economic interest.

2) Eliminations made in the preparation of the groups IFRS consolidated financials.

FY 2019

			Proportionate financials
NOK million	Power Production	Services	Development & construction	Corporate	Total	Residual ownership interests 1)	Eliminations 2)	Consolidated financials
External revenues	1,163	1	2	-	1,165	776	-130	1,810
Internal revenues	-	167	4,977	31	5,176	301	-5,477	-
Net income/(loss) from JV and associates	-	-	-	-	-	-	-28	-28
Total revenues and other income	1,163	168	4,980	31	6,341	1,077	-5,635	1,783
Cost of sales	-	-	-4,274	-	-4,274	-228	4,503	-
Gross profit	1,163	168	706	31	2,067	848	-1,133	1,783
Personnel expenses	-21	-45	-59	-48	-173	8	2	-163
Other operating expenses	-167	-59	-57	-40	-323	-126	215	-234
EBITDA	975	65	589	-57	1,571	730	-915	1,386
Depreciation and impairment	-412	-4	-39	-6	-460	-278	226	-512
Operating profit (EBIT)	563	61	550	-64	1,111	452	-689	874

Note 3 Property, plant and equipment

The Group operates solar power plants in Europe, South East Asia, Middle East, Africa and South America. The power plant companies in Argentina and Brazil are equity consolidated and hence not included in the below table.

In first quarter 2020 two of three solar power plants in Upington, South Africa, reached commercial operation, while the third reached commercial operation in the second quarter, completing the 258 MW solar power complex.

In addition, the 54 MW Boguslav project in Ukraine were grid connected in second quarter, hence the second project in Ukraine have been completed.

There has been recorded an impairment charge of NOK 9 million in 2020. Total impairments amounted to NOK 33 million in 2019.

NOK million	Solar power plants	Solar power plants under construction	Solar power plants under development	Intangible assets, equipment and other assets	Total

Carrying value at 31 December 2019	11,584	3,415	181	221	15,401
Additions	36	1,363	101	18	1,518
Disposals	-	-	-	-	-
Transfer between asset classes	2,866	-2,850	-16	-	-
Depreciation	-536	-	-	-28	-564
Impairment losses	-	-	-9	-	-9
Effect of foreign exchange currency translation adjustments	490	22	-	2	514
Carrying value at 30 September 2020	14,440	1,949	257	214	16,860
Estimated useful life (years)	20-25	N/A	N/A	3-10

Note 4 Net financial expenses and liabilities and significant fair value measurements

Scatec Solar uses non-recourse financing for constructing and/or acquiring assets, exclusively using as guarantee the assets and cash flows of the power plants carrying out the activities financed. Compared to corporate financing, non-recourse financing has certain key advantages, including a clearly defined and limited risk profile. In this respect, the banks recover the financing solely through the cash flows generated by the projects financed. For four of the five solar power companies operating in the Czech Republic and the three solar power companies in Malaysia, the non-recourse financing agreements include a cross default clause within the Czech and Malaysian group respectively.

The power plant companies' assets are pledged as security for the non-recourse financing. The repayment plan for the debt is a sculpted annuity; hence the sum of loan and interest repayments are not stable from year to year. Repayments are normally made twice a year. The maturity date for the loan's ranges from 2028 to 2038. NOK 993 million of the Group's total non-recourse debt is due within 12 months and is presented as current in the statement of

financial position, together with accrued interest. In addition, the Rengy and the Chigrin projects in Ukraine failed to meet one loan covenant measured at 30 September 2020, due to missing payments of revenues following a delayed funding of the offtaker as well as project completion delay. Consequently NOK 552 million of non-current non-recourse debt has been presented as current in the balance-sheet.

During the third quarter of 2020 the Group has not drawn down on any loans related to the construction projects.

Derivative financial instruments (including interest rate swaps and forward exchange contracts) are valued at fair value on Level 2 of the fair value hierarchy, in which the fair value is calculated by comparing the terms agreed under each derivative contract to the market terms for a similar contract on the valuation date. Note 7 in the annual report for 2019 provides details for each class of financial assets and financial liabilities, and how these assets and liabilities are grouped.

NOK million	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019

Interest income	10	13	34	46	66
Forward exchange contracts	-	7	-	-	-
Other financial income	1	-	5	-	-
Financial income	11	20	39	46	66
Interest expenses	-261	-188	-789	-461	-704
Forward exchange contracts	-1	-	-8	-25	-33
Other financial expenses	-13	-8	-30	-16	-6
Financial expenses	-275	-196	-826	-503	-744
Foreign exchange gains/(losses)	-69	-8	82	-7	-13
Net financial expenses	-333	-183	-705	-464	-690

Note 5 Cash, cash equivalents and corporate funding

NOK million	30 September 2020	31 December 2019

Cash in power plant companies in operation	1,995	1,567
Cash in power plant companies under development/construction	38	420
Other restricted cash	84	78
Free cash	1,885	758
Total cash and cash equivalents	4,002	2,824

There are no significant changes in the presentation of these categories in the period.

Cash in power plant companies in operation includes restricted cash in proceed accounts, debt service reserve accounts, disbursements accounts, maintenance and insurance reserve accounts and similar. These cash and cash equivalents are only available to the Group through distributions as determined by shareholder and non-recourse financing agreements.

Cash in power plant companies under development and construction comprise shareholder financing and draw down on loan facilities to settle outstanding external EPC invoices.

Other restricted cash comprises restricted deposits for withholding tax, guarantees, VAT and rent, NCI's share of free cash as well as collateralised shareholder financing of power plant companies not yet distributed to the power plant companies. Net cash effect from Working Capital/ Other is mainly related to ongoing construction projects.

Movement in free cash at group level (in recourse group as defined in bond & loan facilities)

NOK million	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019

Free cash at beginning of period	1,933	560	758	1,039	1,039
Proportionate share of cash flow to equity 1) Services	17	18	57	38	53
Proportionate share of cash flow to equity 1) D&C	-19	106	13	364	471
Proportionate share of cash flow to equity 1) CORP	-52	-28	-99	-66	-91
Project development capex in recourse group	-67	-25	-175	-47	-135
Equity contributions to power plant companies 2)	-104	-304	-673	-682	-869
Distributions from power plant companies	70	73	233	175	241
Share capital increase, net after transaction cost and tax	-	1,300	1,953	1,300	1,300
Dividend distribution	-131	-	-131	-108	-108
Working capital / Other	237	-182	-52	-495	-1,143
Drawn on credit facilities	-	-	-	-	-
Free cash at end of the period	1,885	1,518	1,885	1,518	758

Available undrawn credit facilities	1,600	863	1,600	863	836
Total free cash and undrawn credit facilities at the end of the period	3,485	2,381	3,485	2,381	1,594

1) Proportionate share of cash flow to equity is defined in Alternative Performance Measures Appendix.

2) Equity contributions to power plant companies consist of equity injections and shareholder loans.

Guarantee facility

In the first quarter of 2020, Scatec Solar refinanced the guarantee facility and intercreditor agreement that was established in 2017. The guarantee facility has Nordea Bank as agent and issuer, Nordea Bank, Swedbank and BNP Paribas as guarantee instrument lenders. The guarantee facility is mainly used to provide advanced payment-, performance- and warranty bonds under construction agreements, as well as trade letter of credits. The intercreditor agreement is entered into by Scatec Solar, the issuing banks under the guarantee facility and GIEK. GIEK can issue counter indemnity in favour of the issuing banks on behalf of the relevant instrument lenders.

Revolving credit facility

In first quarter 2020 Scatec Solar refinanced the USD 90 million revolving credit facility (RCF) with Nordea Bank as agent and Nordea Bank, Swedbank and BNP Paribas as equal Lenders. The facility can be drawn in USD, NOK, EUR or an optional currency agreed with the banks. The new facility is ESG (Environmental, Social and Governance) linked and has a three years tenor. The facility is linked to the following ESG KPIs:

A targeted level for LTIFR (Lost time incident frequency rate) for the Group
Anti-Corruption training for all employees
Environmental and social baseline studies and risk assessment on all power plants by external experts

Revolving credit facility interest is the interbank offer rate for the drawn period plus a margin of 2.40%. The margin is adjusted annually according to a matrix related to fulfilment of the ESG KPIs. Scatec Solar has not drawn on the revolving credit facility per 30 September 2020.

Bank facility

In first quarter 2020, Scatec Solar entered into a USD 75 million credit facility with Nordea Bank, Swedbank and BNP Paribas. The facility has a tenor of up to 18 months. Scatec Solar has not drawn on this facility per 30 September 2020.

Overdraft facility

In second quarter 2018 Scatec Solar entered into a USD 5 million overdraft facility with Nordea Bank. The overdraft interest is the 7-day interbank offer rate plus a margin of 2.5%. Scatec Solar has not drawn on the overdraft facility per 30 September 2020.

Green bond

In fourth quarter 2017 Scatec Solar issued a NOK 750 million senior unsecured green bond with maturity in November 2021. The bond carries an interest of 3-month NIBOR + 4.75%, to be settled on a quarterly basis. The bond was listed on the Oslo Stock Exchange 6 April 2018 with ticker SSO02 G.

Per 30 September 2020, Scatec Solar was in compliance with all financial covenants for the above facilities. The book equity of the recourse group, as defined in the facility agreements, was NOK 7,158 million per quarter end.

During third quarter of 2020, interest amounting to NOK 16 million (NOK 20 million in previous quarter) was expensed for the bond, overdraft- and revolving credit facility.

Refer to bond agreement available on www.scatecsolar.com/ investor/debt for further information and definitions.

Note 6 Income tax expense

The underlying tax rates in the companies in operation are in the range of 0% to 33%. In some markets, Scatec Solar receives special tax incentives intended to promote investments in renewable energy. The effective tax rate has been and will be impacted by the volume of construction activities as the tax rate in the construction companies normally is higher than in the power plant companies. This means that the full tax expense on the internal profit will not be eliminated and hence increase the effective tax rate during construction. The opposite effect will occur when the eliminated internal profit is reversed through lower depreciation at the tax rate of the power plant company. Further, the profit/loss from JVs and associates, which are reported net after tax, has an impact on the effective tax rate depending on the relative size of the profit/loss relative to the consolidated profit.

The effective tax rate is also influenced by currency fluctuations on tax assets and liabilities in locations where different functional currency is applied in tax reporting compared with financial accounting.

Effective tax rate

NOK million	Q3 2020	Q3 2019		YTD 2019	FY 2019

Profit before income tax	10	87	343	138	184
Income tax (expense)/benefit	-34	-20	-150	-39	-29
Equivalent to a tax rate of (%)	340%	23%	44%	28%	16%

Movement in deferred tax

NOK million	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019

Net deferred tax asset at beginning of period	432	288	343	181	181
Recognised in the consolidated statement of profit or loss	-3	19	-83	75	91
Deferred tax on financial instruments recognised in OCI	-19	21	102	75	58
Recognised in the consolidated statement of changes in equity	-	6	9	6	6
Translation differences	5	27	41	25	7
Net deferred tax asset at end of period	414	362	414	362	343

Note 7 Related parties

Scatec Solar has related party transactions and balances with equity consolidated JVs in Brazil and Argentina, mainly loans which are included in the carrying value of the investments. The loan balance as per 30 September 2020 was NOK 190 million.

In addition, Scatec Solar has transactions and balances with key management. Note 26 in the annual report for 2019 provides details of transactions with related parties and the nature of these transactions.

All related party transactions have been carried out as part of the normal course of business and at arm`s length. For further information on project financing provided by co-investors, refer to note 28 in the 2019 annual report.

In connection with the Company's Share Option Programme and capital increases in 2019 and 2020, the Company entered into share lending agreements with Scatec AS, the Company's second largest shareholder.

Note 8 Subsequent events

Scatec Solar has at 16 October 2020 signed a binding agreement to acquire SN Power, a leading hydropower developer and IPP from Norfund. Through the transaction Scatec Solar strengthens its position as a leading developer and producer of renewable energy in markets with high growth and rapid adoption of green energy. Scatec Solar will be acquiring 100% of the shares in SN Power AS from Norfund for a total consideration of USD 1,166 million.

No other events have occurred after the balance sheet date with significant impact on the interim financial statements for the third quarter 2020.

Alternative Performance Measures

Scatec Solar discloses alternative performance measures (APMs) in addition to those normally required by IFRS. This is based on the Group's experience that APMs are frequently used by analysts, investors and other parties for supplemental information.

The purpose of APMs is to provide an enhanced insight into the operations, financing and future prospect of the Group. Management also uses these measures internally to drive performance in terms of long-term target setting. APMs are adjusted IFRS measures that are defined, calculated and used in a consistent and transparent manner over the years and across the Group where relevant.

Financial APMs should not be considered as a substitute for measures of performance in accordance with IFRS. Disclosures of APMs are subject to established internal control procedures.

Cash flow to equity: is a measure that seeks to estimate value creation in terms of the Group's ability to generate funds for equity investments in new solar power plant projects and/or for shareholder dividends over time. Management believes that the cash flow to equity measure provide increased understanding of the Group's ability to create funds from its investments. The measure is defined as EBITDA less net interest expense, normalised loan repayments and normalised income tax payments. The definition excludes changes in net working capital, investing activities and fair value adjustment of first-time recognition of joint venture investments. Normalised loan repayments are calculated as the annual repayment divided by four quarters for each calendar year. However, loan repayments are normally made bi-annually. Loan repayments will vary from year to year as the payment plan is based on a sculpted annuity. Net interest expense is here defined as interest income less interest expenses, excluding shareholder loan interest expenses and accretion expenses on asset retirement obligations. Normalised income tax payment is calculated as operating profit (EBIT) less normalised net interest expense multiplied with the nominal tax rate of the jurisdiction where the profit is taxed.

EBITDA: is defined as operating profit adjusted for depreciation, amortisation and impairments.

EBITDA margin: is defined as EBITDA divided by total revenues and other income.

EBITDA and EBITDA margin are used for providing consisting information of operating performance which is relative to other companies and frequently used by other stakeholders.

Gross profit: is defined as total sales revenue including net gain/loss from sale of project assets and net gain/loss from associates minus the cost of goods sold (COGS). The measurement of gross profit is used to measure project profitability in the D&C segment. Refer to note 2 Operating Segments for further details.

Gross interest-bearing debt: is defined as the Group's total debt obligations and consists of non-current and current external non-recourse financing and external corporate financing, irrespective of its maturity as well as bank overdraft and discounted notes.

Net interest-bearing debt (NIBD): is defined as gross interestbearing debt, less cash and cash equivalents. NIBD does not include shareholder loans.

Net working capital includes trade- and other receivables, other current assets, trade- and other payables, income tax payable and other current liabilities.

Proportionate Financials

The groups segment financials are reported on a proportionate basis. The consolidated revenues and profits are mainly generated in the Power Production segment. Activities in Services and Development & Construction segment mainly reflect deliveries to other companies controlled by Scatec Solar (with from 39% to 100% economic interest), for which revenues and profits are eliminated in the Consolidated Financial Statements. With proportionate financials Scatec Solar reports its share of revenues, expenses, profits and cash flows from its subsidiaries without eliminations based on Scatec Solar's economic interest in the subsidiaries. The Group introduced SSO Proportionate Financials as the Group is of the opinion that this method improves earnings visibility. The key differences between the proportionate and the consolidated IFRS financials are that;

Internal gains are eliminated in the consolidated financials but are retained in the proportionate financials. These internal gains primarily relate to gross profit on D&C goods and services delivered to project companies which are eliminated as a reduced group value of the solar plant compared to the stand-alone book value. Similarly, the consolidated financials have lower solar plant depreciation charges than the proportionate financials since the proportionate depreciations are based on solar plant values without elimination of internal gain. Internal gain eliminations also include profit on Services delivered to project companies.
The consolidated financials are presented on a 100% basis, while the proportionate financials are presented based on Scatec Solar's ownership percentage/economic interest.
In the consolidated Financials joint venture companies (Brazil and Argentina) are equity consolidated and are presented with Scatec Solar's share of the net profit on a single line in the statement of profit or loss. In the proportionate financials the joint venture companies are presented in the same way as other subsidiaries on a gross basis in each account in the statement of profit or loss.

For third quarter 2020 Scatec Solar reports a proportionate operating profit of NOK 159 million compared with an operating profit of NOK 343 million in the consolidated financials. To arrive at the proportionate operating profit from the consolidated operating profit the Group has;

1. added back to the proportionate statement of profit or loss the internal gain on transactions between group companies with a negative amount of NOK 42 million 1),
1. removed the non-controlling interests share of the operating profit of NOK 156 million to only leave the portion corresponding to Scatec Solar's ownership share,
1. replaced the consolidated net profit from joint venture companies of negative NOK 7 million with Scatec Solar's share of the Operating profit from the joint venture companies with NOK 7 million.

See Note 2 for further information on the reporting of proportionate financial figures, including reconciliation of the proportionate financials against the consolidated financials.

A bridge from proportionate to consolidated key figures including APMs like gross interest bearing debt, net interest bearing debt and net-working capital is included on page 19.

1) Where NOK 4 million comprise Scatec Solar's share of gross profit on D&C contracts, NOK -39 million comprise increased depreciation charges from internal gains and NOK -7 million comprise other items.

Reconciliation of Alternative Performance Measures (consolidated figures)

NOK million	Q3 2020	Q3 2019	YTD 2020	YTD 2019	FY 2019

EBITDA
Operating profit (EBIT)	343	270	1,048	603	874
Depreciation, amortisation and impairment	195	148	573	346	512
EBITDA	538	418	1,621	949	1,386
Total revenues and other income	724	512	2,075	1,214	1,783
EBITDA margin	74%	82%	78%	78%	78%
Gross profit
Total revenues and other income	724	512	2,075	1,214	1,783
Cost of sales	-	-	-	-	-
Gross profit	724	512	2,075	1,214	1,783
Gross interest-bearing debt
Non-recourse project financing	11,455	11,861	11,455	11,861	12,228
Bonds	747	745	747	745	745
Non-recourse project financing - current	1,545	527	1,545	527	837
Gross interest-bearing debt	13,748	13,132	13,748	13,132	13,810
Net interest-bearing debt
Gross interest-bearing debt	13,748	13,132	13,748	13,132	13,810
Cash and cash equivalents	4,002	3,455	4,002	3,455	2,824
Net interest-bearing debt	9,746	9,678	9,746	9,678	10,986
Net working capital
Trade and other receivables	781	512	781	512	461
Other current assets	672	1,903	672	1,903	1,211
Trade and other payables	-806	-557	-806	-557	-888
Income tax payable	-24	-51	-24	-51	-92
Other current liabilities	-927	-1,223	-927	-1,223	-902
Non-recourse project financing-current	-1,545	-527	-1,545	-527	-837
Net working capital	-1,850	58	-1,850	58	-1,047

Break-down of proportionate cash flow to equity

Q3 2020

NOK million	Power Production	Services	Development & Construction	Corporate	Total

EBITDA	379	22	-27	-54	319
Net interest expenses	-128	-	-	-13	-141
Normalised loan repayments	-99	-	-	-	-99
Normalised income tax payment	-19	-5	7	16	-
Cash flow to equity	134	17	-19	-52	80

Q2 2020

NOK million	Power Production	Services	Development & Construction	Corporate	Total

EBITDA	374	34	22	-13	417
Net interest expenses	-129	-	-	-17	-147
Normalised loan repayments	-93	-	-	-	-93
Normalised income tax payment	-17	-7	-3	8	-19
Cash flow to equity	135	27	19	-23	158

Q3 2019 1)

NOK million	Power Production	Services	Development & Construction	Corporate	Total

EBITDA	291	23	133	-14	433
Net interest expenses	-89	-	2	-22	-109
Normalised loan repayments	-64	-	-	-	-64
Normalised income tax payment	-18	-5	-28	8	-43
Cash flow to equity	121	18	106	-28	218

1) 2019 is restated in line with the new segment structure.

YTD 2020

NOK million	Power Production	Services	Development & Construction	Corporate	Total

EBITDA	1,084	72	10	-84	1,082
Net interest expenses	-381	1	1	-47	-427
Normalised loan repayments	-280	-	-	-	-280
Normalised income tax payment	-50	-15	2	32	-31
Cash flow to equity	374	57	13	-99	345

YTD 2019 1)

NOK million	Power Production	Services	Development & Construction	Corporate	Total

EBITDA	671	48	457	-40	1,136
Net interest expenses	-215	-	3	-46	-258
Normalised loan repayments	-161	-	-	-	-161
Normalised income tax payment	-38	-10	-96	20	-124
Cash flow to equity	258	38	364	-66	594

1) 2019 is restated in line with the new segment structure.

Other definitions

Backlog

Project backlog is defined as projects with a secure off-take agreement assessed to have more than 90% probability of reaching financial close and subsequent realisation.

Pipeline

Project pipeline is defined as projects that do not yet have a 90% probability of reaching financial close and subsequent realisation. However, the Group has verified feasibility and business cases for the projects.

Scatec Solar's economic interest

Scatec Solar's share of the total estimated economic return from its subsidiaries. For projects in development and construction the economic interest is subject to change from the development of the financial model.

Cash in power plant companies in operation

Comprise restricted cash in proceed accounts, debt service reserve accounts, disbursements accounts, maintenance and insurance reserve accounts and similar. These cash and cash equivalents are only available to the Group through distribution as determined by shareholder and non-recourse financing agreements.

Cash in power plant companies under development/construction

Comprise shareholder financing and draw down on term loan facilities by power plant companies to settle outstanding external EPC invoices.

Project equity

Project equity comprise of equity and shareholder loans in solar power plant companies.

Recourse Group

Recourse Group means all entities in the Group, excluding solar park companies (each a recourse group company).

Definition of project milestones

Commercial Operation Date (COD): A scheduled date when certain formal key milestones have been reached, typically including grid compliance, approval of metering systems and technical approval of plant by independent engineers. Production volumes have reached normalised levels sold at the agreed off-taker agreement price. This milestone is regulated by the off-taker agreement with the power off-taker. In the quarterly report grid connection is used as a synonym to COD.

Financial close (FC): The date on which all conditions precedent for drawdown of debt funding has been achieved and equity funding has been subscribed for, including execution of all project agreements. Notice to proceed for commencement of construction of the solar power plant will normally be given directly thereafter. Projects in Scatec Solar defined as "backlog" are classified as "under construction" upon achievement of financial close.

Start of Production (SOP): The first date on which the solar power plant generates revenues through sale of power under the off-take agreement. Production volumes and/or the price of the power may be lower than when commercial operation date (COD) is reached. This milestone is regulated by the off-take agreement with the power off-taker. This milestone may be reached prior to COD if the construction of a power plant is completed earlier than anticipated in the off-take agreement.

Take Over Date (TOD): The date on which the EPC contractor hands over the power plant to the power plant company. COD must have been reached, in addition to delivery of training and all technical documentation before TOD takes place. The responsibility for Operations & Maintenance (O&M) of the plant is handed over from the EPC contractor to the O&M contractor at the TOD. This milestone will normally occur shortly after the COD date.

AI Terminal

Scatec ASA

3737_rns_2020-10-16_0de5eae8-15f6-437f-bd42-b41898ef3d84.pdf

Third quarter

About Scatec Solar

Asset portfolio 1)

Segment overview

Development & Construction

Power Production

Services

Corporate

1) Per reporting date.

Q3'20 – Increased power production and growth in project pipeline

Proportionate revenues and EBITDA NOK million

Key figures

Group – Proportionate financials

Power Production – Proportionate financials

Services – Proportionate financials

Development & Construction (D&C) – Proportionate financials

Short term guidance

Power production

Services

Development & Construction

Corporate

Corporate – Proportionate financials

COVID-19 impacts

Outlook

Consolidated statement of profit and loss

Profit and loss

Revenues

Operating profit

Net financial items

Profit before tax and net profit

Impact of foreign currency movements in the quarter

Consolidated statement of financial position

Assets

Equity and liabilities

Consolidated cash flow

Proportionate cash flow to equity

Risk and forward-looking statements

Project overview

Projects under construction and backlog 1)

Under construction

Backlog

Tunisia, 360 MW

Ukraine, 65 MW

Bangladesh, 62 MW

Mali, 33 MW

Pipeline

Latin America (1,234 MW)

Africa and the Middle East (2,516 MW)

Europe and Central Asia (430 MW)

Rest of Asia (2,340 MW)

Proportionate financials Break down of Power Production segment Key financials

Q3 2020

Q3 2019

YTD 2020

YTD 2019

FY 2019

Financial position and working capital breakdown Proportionate financials

30 September 2020

Bridge from proportionate to consolidated financials

30 September 2020

Condensed interim financial information

Interim consolidated statement of profit or loss

Interim consolidated statement of comprehensive income

Interim consolidated statement of financial position

Interim consolidated statement of financial position

Interim consolidated statement of changes in equity

Interim consolidated statement of cash flow

Notes to the condensed interim consolidated financial statements

Note 1 Organisation and basis for preparation

Corporate information

Basis of preparation

Significant estimates and judgements

Judgements

Consolidation of power plant companies

Estimates and assumptions

Seasonality in operations

Note 2 Operating segments