Scatec ASA

Earnings Release • Jan 24, 2020

Fourth quarter 2019

24 January 2020

Disclaimer

The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ('relevant persons'). Any person who is not a relevant person should not rely, act or make assessment on the basis of this presentation or anything included therein.

The following presentation may include information related to investments made and key commercial terms thereof, including future returns. Such information cannot be relied upon as a guide to the future performance of such investments. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Scatec Solar ASA or any company within the Scatec Solar Group. This presentation contains statements regarding the future in connection with the Scatec Solar Group's growth initiatives, profit figures, outlook, strategies and objectives as well as forward looking statements and any such information or forwardlooking statements regarding the future and/or the Scatec Solar Group's expectations are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements.

Agenda

• Highlights and project update

Raymond Carlsen, CEO

• Financial review

Mikkel Tørud, CFO

• Summary and outlook

Raymond Carlsen, CEO

The 40 MW Mocuba solar plant, Mozambique.

Q4'19: Continued strong growth and new contract awards

• Power production reached 298 GWh in the quarter and 926 GWh (318) for FY2019
• EBITDA* of NOK 434 million in the quarter and NOK 1,571 million (961) for FY2019
• Completed the 390 MW solar plant in Egypt
• Awarded 360 MW of new solar projects in Tunisia
• The Board of Directors proposes dividends of NOK 1.05 per share

*EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section of the fourth quarter report on pages 37-39.

2019: Doubled installed capacity and expanded the project pipeline

Global footprint & targets raised – expanded pipeline & backlog to 5.8 GW

Grid connected 609 MW in Egypt, Malaysia, Ukraine and Mozambique – in total 1.2 GW in operation

Industry leader in ESG risk management – also expanded to include reporting to Carbon Disclosure Project (CDP)

Proportionate EBITDA

5

Diversified asset portfolio of 1.2 GW in operation

711 MW under construction on four continents

South Africa, 258 MW

Malaysia, 47 MW

A well diversified portfolio with PPA contract values of more than NOK 60 billion

*Based on expected cash flow to equity.

Environmental, Social & Governance (ESG) is integrated in our operating model

An industry leader in ESG risk management

SSO's material ESG topics from risk rating report	Rating summary: Low risk	Relative performance
Corporate Human governance capital	• Low risk of experiencing material financial impacts from ESG factors • Strong ESG risk management	Global universe	Rank 379 out of 12,237
Business Community Product relations ethics governance Health & Land use & safety biodiversity		Utilities (Industry Group)	1 out of 450
	• Not experienced any significant controversies	Renewable power production (Subindustry)	1 out of 48

Financial review

Mikkel Tørud, CFO

Continued growth and predictable long term cash flows

Power Production Steady growth in power production

• 65 MW in Egypt started commercial operation in Q4'19

The 162 MW Apodi solar plant, Brazil.

Operation & Maintenance EBITDA growth in line with a larger power plant portfolio

Scatec Solar's 24/7 global Control & Monitoring centre in Cape Town.

Development & Construction High development and construction activity

16% 14% 15% 14% Installation of solar panels at the Guañizuil IIA project, Argentina.

A strong financial position

• Group free cash of NOK 758 million
• Undrawn Revolving Credit Facility at USD 90 million
• Group* book equity at NOK 4,985 million – equity ratio of 87%

NOK million	Consolidated	SSO prop. share	Group level*
Cash	2,824	2,155	758
Interest bearing liabilities*	-13,810	-9,467	-745
Net debt	-10,986	-7,312	13

Consolidated financial position (NOK million)

*Defined as 'recourse group' in the corporate bond and loan agreements

Q4'19 free cash at group level

2019 free cash at group level

Short term guidance

• D&C value for 711 MW under construction: NOK 3.4 billion
  • Remaining NOK 700 million value to be recognised
• Power production from plants in operation end of 2019:

GWh	Q4'19	Q1'20e	2020e
Proportionate	298	305-325	1,250-1,350
100% basis	536	540-580	2,300-2,400

• In 2020, revenues and margins from Asset Management and O&M will be reported together in a new Services segment
• Guidance and restated figures will be published before reporting of Q1 2020 The 47 MW Rengy project, Ukraine.

Outlook and summary

Raymond Carlsen, CEO

Solid backlog & pipeline supporting our growth ambitions

Vietnam – a high growth economy with a significant market potential

• Strong economic growth GDP growth of 7% per year
• Population of close to 100 million
• Strong demand for power rapid growth in renewables
• Needs to add 60-70 GW of new capacity the next 10 years
• Government assessing how to further develop the renewable programme
• A market that fits well with Scatec Solar's business model

South Africa – accelerating renewable developments

• One of Africa's largest economies weak economic growth but in need for more power capacity
• Integrated resource plan approved in Q4 2019
  • 20 GW of renewable energy planned towards 2030
• Renewable tender Round 5 expected in 2020
• In addition: Short term power deficit has led to an extra power procurement round
• New regulations allows for industrial self-production
• Scatec Solar's market position
  • Existing asset base of 448 MW
  • 950 MW of excellent sites ready for tenders
  • Strong interest for Release public and private customers The 75 MW Dreunberg plant in South Africa started operations in 2014.

Scatec Solar is well positioned for continued strong growth

• Completing 711 MW in first half 2020
• Long term cash flows from 1.9 GW
• ESG an integrated part of our operating model
• Positive market outlook
• A leading player in emerging markets
• Targeting installed capacity* of 4.5 by end 2021 and adding 1.5+ GW per year from 2022

The 117 MW Guañizuil IIA project, Argentina.

*In operation and under construction.