Scatec ASA

Quarterly Report • May 5, 2017

First quarter 2017

About Scatec Solar

Scatec Solar is an integrated independent solar power producer, delivering affordable, rapidly deployable and sustainable source of clean energy worldwide. A long term player, Scatec Solar develops, builds, owns, operates and maintains solar power plants, and has an installation track record of 600 MW.

The company is producing electricity from 322 MW of solar power plants in the Czech Republic, South Africa, Rwanda, Honduras and Jordan. With an established global presence, the company is growing briskly with a project backlog and pipeline of 1.8 GW under development in the Americas, Africa, Asia and the Middle East. Scatec Solar is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol 'SSO'.

To learn more, visit www.scatecsolar.com

Project	Financing	Construction	Operations	Ownership
development • Site development	• Detailed design & engineering	• Project management	• Maximize performance	• Asset management
• System design • Permitting • Grid connection • PPA negotiation /	• Component tendering • Debt / Equity structuring • Due Diligence	• Supplier and construction monitoring • Quality assurance	and availability • Maintenance and repair	• Financial and operational optimization
tender / FiT		• Funding and cash flow management

SCATEC SOLAR'S VALUE CHAIN

Q1'17 Highlights

• Power production reached 156 GWh in line with expectations, up 12% from Q1'16 excluding the sold Utah Red Hill plant
• SSO proportionate share of cash flow to equity from Power Production and Operation & Maintenance of NOK 33 million
• NOK 380 million equity raised free cash of NOK 665 million – fully funded for equity investments in project backlog
• Added 400 MW to project backlog with signing of 25-year PPAs in Egypt – backlog now totaling 1,131 MW
• On track to reach target of 1,300 1,500 MW in operation and under construction by year end 2018

CONSOLIDATED REVENUES AND EBITDA

KEY FIGURES

NOK MILLION	Q1 2017	Q4 2016	Q1 2016	FY 2016
CONSOLIDATED FINANCIALS
Total revenues and other income	276	363	228	1,085
EBITDA	222	294	165	833
Operating profit (EBIT)	160	210	107	563
Profit/(loss)	31	77	-23	70
Profit/(loss) to Scatec Solar	4	46	-46	4
Net debt	3,633	3,942	4,210	3,942
Power Production (GWh)	156	204	182	791
SSO PROPORTIONATE FINANCIALS 1)
Total revenues and other income	143	153	375	1,175
EBITDA	87	82	83	377
Operating profit (EBIT)	47	-11	40	146
Profit/(loss)	-8	-61	-28	-84
Net debt	1,615	1,918	2,556	1,918
Power Production (GWh)	69	107	99	462
SSO proportionate share of cash flow to equity 1):
Power Production	29	44	26	148
Operation & Maintenance	4	4	4	24
Development & Construction	-11	-12	7	-5
Corporate	-15	-13	-15	-63
Total	7	23	22	104

The table above provides key financial figures based on both the consolidated and proportionate and consolidated method. The proportionate method is a non-GAAP measure that calculates revenues and profits for Scatec Solar based on the proportionate equity ownership in its subsidiaries without eliminations. The SSO Proportionate Financials are introduced to improve earnings visibility.

The consolidated revenues and profits are mainly generated in the Power Production segment. Activities in Operation & Maintenance and Development & Construction segment mainly reflect deliveries to other companies controlled by Scatec Solar (with from 39% to 100% ownership), for which revenues and profits are eliminated in the Consolidated Financial Statements.

1) See appendix for definition of this measure.

Break down of proportionate financials

PROPORTIONATE FINANCIALS Q1 2017

NOK MILLION	POWER PRODUCTION 100% BASIS	POWER PRODUCTION SSO SHARE	OPERATION & MAINTENANCE SSO SHARE	DEVELOPMENT & CONSTRUCTION SSO SHARE	CORPORATE SSO SHARE	TOTAL
Revenues	276.5	125.3	14.6	0.1	3.0	142.9
Net gain/(loss) from sale of project assets	-	-	-	-	-	-
Net income/(loss) from associates	-	-	-	-0.3	-	-0.3
Total revenues and other income	276.5	125.3	14.6	-0.2	3.0	142.7
Cost of sales	-	-	-	-	-	-
Gross profit	276.5	125.3	14.6	-0.2	3.0	142.7
Operating expenses	-33.3	-17.5	-9.7	-15.2	-13.5	-55.8
EBITDA	243.3	107.8	4.9	-15.4	-10.5	86.8
Depreciation, amortisation and impairment	-77.4	-38.5	-0.2	-0.6	-0.3	-39.6
Operating profit (EBIT)	165.8	69.3	4.6	-15.9	-10.8	47.2

PROPORTIONATE FINANCIALS Q1 2016

NOK MILLION	POWER PRODUCTION 100% BASIS	POWER PRODUCTION SSO SHARE	OPERATION & MAINTENANCE SSO SHARE	DEVELOPMENT & CONSTRUCTION SSO SHARE	CORPORATE SSO SHARE	TOTAL
Revenues	227.3	102.5	13.1	257.8	2.4	375.7
Net gain/(loss) from sale of project assets	-	-	-	0.2	-	0.2
Net income/(loss) from associates	-	-	-	-0.6	-	-0.6
Total revenues and other income	227.3	102.5	13.1	257.4	2.4	375.3
Cost of sales	-	-	-	-227.6	-	-227.6
Gross profit	227.3	102.5	13.1	29.7	2.4	147.7
Operating expenses	-33.6	-21.0	-7.3	-22.3	-14.0	-64.6
EBITDA	193.7	81.5	5.7	7.5	-11.6	83.1
Depreciation, amortisation and impairment	-71.2	-40.5	-0.5	-2.4	-0.2	-43.6
Operating profit (EBIT)	122.6	41.0	5.2	5.1	-11.8	39.5

PROPORTIONATE FINANCIALS FULL YEAR 2016

NOK MILLION	POWER PRODUCTION 100% BASIS	POWER PRODUCTION SSO SHARE	OPERATION & MAINTENANCE 100% BASIS	DEVELOPMENT & CONSTRUCTION 100% BASIS	CORPORATE 100% BASIS	TOTAL
Revenues	1,010.6	498.7	62.2	599.0	9.8	1,169.8
Net gain/(loss) from sale of project assets	-	-	-	8.3	-	8.3
Net income/(loss) from associates	-	-	-	-3.4	-	-3.4
Total revenues and other income	1,010.6	498.7	62.2	603.9	9.8	1,174.7
Cost of sales	-	-	-	-539.6	-	-539.6
Gross profit	1,010.6	498.7	62.2	64.4	9.8	635.1
Operating expenses	-157.3	-94.0	-30.6	-76.6	-57.2	-258.4
EBITDA	853.4	404.8	31.6	-12.2	-47.4	376.7
Depreciation, amortisation and impairment	-352.0	-216.8	-2.3	-10.4	-0.8	-216.8
Operating profit (EBIT)	501.4	188.0	29.3	-22.7	-48.1	146.4

Segment overview

Scatec Solar is an integrated independent solar power producer; develops, builds, owns and operates large scale solar power plants.

Scatec Solar reports on three operating business segments; Power Production (PP), Operation & Maintenance (O&M), and Development & Construction (D&C), as well as on Corporate and Eliminations.

Revenues and gross margins related to deliveries of development and construction, and operation and maintenance services to project companies deemed to be controlled by Scatec Solar are eliminated in the Consolidated Group Financial Statements. The underlying value creation in each segment is hence reflected only in the segment reporting.

Power Production (PP)

As per the first quarter 2017 the PP segment comprised the 322 MW of solar power plants in operation as specified below. The plants produce electricity for sale under 20-25 year fixed priced, normally with inflation adjustments, power purchase agreements (PPA) or feed-in tariff (FiT) schemes.

Operation & Maintenance (O&M)

The O&M segment comprises of primarily services provided to solar power plants controlled by Scatec Solar. Revenues and profits are typically generated on the basis of fixed service fees with additional profit-sharing arrangements based on plant performance.

Development & Construction (D&C)

The D&C segment comprises of development activities in a number of projects globally as well as construction of solar power plants developed by the company. Revenues and profits are recognised based on percentage-of-completion of the construction contracts.

The backlog of projects with secured offtake of future power production is currently at 1,131 MW, while the project pipeline consists of several projects with a combined capacity of 745 MW.

Refer to note 2 in the condensed interim consolidated financial statements for an overview of the segment financials.

Financial review

Power Production

Revenues in Power Production reached NOK 277 million, up from NOK 227 million in the first quarter last year and down from NOK 290 million in the previous quarter. Power production reached 156 GWh after the sale of the Utah plant at the end of last year, and on a comparable basis production was up 12% from the first quarter last year and down 7 % from the previous quarter.

The year on year increase in revenues is mainly explained by additional revenues from the new plants in Jordan and a strengthening of ZAR/NOK of 17%.

Operating expenses in the segment amounted to NOK 33 million (34) in the first quarter, in line with the same quarter last year. The O&M services are delivered by Scatec Solar with revenues and earnings reported in the Operation & Maintenance segment.

EBITDA reached NOK 243 million (194) in the first quarter, up from NOK 194 million in same period last year. The EBITDA margin was 88% up from 85% last year.

Depreciation and amortisation amounted to NOK 77 million (71), down from NOK 130 million in the previous quarter. In fourth quarter 2016 the Power Production segment recorded an impairment charge related to the exit from the US market of NOK 43 million, of which NOK 29 million was eliminated on consolidated basis.

Scatec Solar's proportionate share of cash flow to equity from Power Production was NOK 29 million (26) in first quarter.

See separate tables for financials for each individual project company.

POWER PRODUCTION – REVENUES AND EBITDA BY QUARTER

POWER PRODUCTION – KEY FIGURES

NOK MILLION	Q1'16	Q2'16	Q3'16	Q4'16	Q1'17
External revenues	227.3	213.9	279.8	289.6	276.5
Total revenues and
other income	227.3	213.9	279.8	289.6	276.5
Operating expenses	-33.6	-37.6	-44.1	-41.9	-33.3
EBITDA	193.7	176.3	235.7	247.7	243.3
D&A and impairment	-71.2	-69.7	-81.4	-129.8	-77.4
EBIT	122.6	106.6	154.3	118.0	165.8

POWER PRODUCTION – KEY RATIOS (%)

	Q1'16	Q2'16	Q3'16	Q4'16	Q1'17
EBITDA margin	85%	82%	84%	86%	88%
EBIT margin	54%	50%	55%	41%	60%

PRODUCTION (MWH)

	MW	Q1'16	Q2'16	Q3'16	Q4'16	Q1'17
Czech portfolio	20	3,077	7,965	8,128	2,157	3,735
Kalkbult	75	37,143	31,963	36,392	40,030	35,531
Dreunberg	75	44,209	28,849	35,050	52,158	41,928
Linde	40	25,327	15,749	19,201	28,170	23,916
ASYV	9	3,338	3,522	3,964	3,345	3,440
Agua Fria	60	26,438	24,591	25,847	24,072	25,791
Utah Red Hills	104	42,668	64,240	65,451	35,685	N/A
Jordan	43	-	5,852	27,487	18,752	21,793
MWh produced		426 182,200 182,731 221,521 204,370				156,133
- net to SSO	252		99,360 118,681 137,569 107,089			68,650

2) Numbers in brackets refer to comparable information for the corresponding period last year.

PROJECT COMPANIES - KEY FINANCIALS Q1 2017

NOK MILLION	CZECH REPUBLIC	KALKBULT		LINDE DREUNBERG	ASYV	AGUA FRIA	JORDAN	SEGMENT OVERHEAD	TOTAL SEGMENT	SSO PROP. SHARE 5)
Revenues	15.6	77.9	41.3	73.3	7.8	30.1	30.2	0.4	276.5	125.3
OPEX	-1,0	-8.9	-3.6	-6.4	-1.0	-4.5	-2.9	-5.1	-33.3	-17.5
EBITDA	14.6	69.0	37.6	66.9	6.8	25.6	27.3	-4.6	243.3	107.8
EBITDA margin	94%	89%	91%	91%	87%	85%	91 %	N/A	88 %	86 %
Net Interest expenses 5)	-4.8	-28.4	-14.0	-27.6	-3.0	-9.8	-12.2	1.5	-98.2	-43.3
Normalised loan repayments 5)	-5.7	-8.7	-7.9	-14.7	-3.3	-12.2	-7.0	-	-59.4	-28.8
Normalised income tax payments	-0.3	-6.7	-4.1	-6.2	-0.3	-	-0.1	0.9	-16.8	-6.3
Cash flow to equity 5)	3.8	25.3	11.7	18.4	0.2	3.6	8.0	-2.2	68.8	29.3
SSO shareholding	100%	39%	39%	39%	54%	40%	90/50.1%	-	-	-

PROJECT COMPANIES – FINANCIAL POSITION AND WORKING CAPITAL BREAK-DOWN

AS OF 31 MARCH 2017

CZECH				ASYV	AGUA FRIA	JORDAN	PROJECT COMPANY TOTAL	D&C, O&M, CORPORATE & ELIMINATIONS 6)	CONSOLI DATED
152.6	155.8	96.2	289.9	39.7	349.3	298.5	1,382.0	139.9	1,521.9
605.1	1,355.0	769.9	1,510.0	193.3	1,083.2	1,269.8	6,786.2	706.2	7,492.4
512.4	1,130.3	616.9	1,222.7	166.6	926.8	1,063.7	5,639.4	-543.2	5,096.2
34.6	164.6	95.7	175.9	19.7	134.3	172.5	797.3	765.1	1,562.5
375.3	1,050.8	569.4	1,151.9	147.8	592.0	812.0	4,699.1	496.3	5,195.3
340.6	886.3	473.6	975.9	128.1	457.7	639.5	3,901.8	-268.9	3,632.9
-16.3	-69.9	-104.3	-59.7	-16.9	-32.5	-70.3	-370.0	50.2	-319.7
		REPUBLIC KALKBULT		LINDE DREUNBERG	IN OPERATION

3) Refer to appendix for definition of this measure.

4) The amount of NOK 543,2 million is net after reduction for capitalised development spending on projects that have not yet reached construction phase of NOK 690 million.

5) Cash in project companies includes cash in proceeds accounts, debt service reserve accounts and cash available for redistribution to project company shareholders. Cash in D&C, O&M and Corporate include NOK 88 million of restricted cash related to deposits for withholding tax, guarantees, VAT and rent as well as collateralised shareholders financing.

6) Gross debt consist of non-current and current external non-recourse financing and external corporate financing.

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

Operation & Maintenance

Revenues in the Operation & Maintenance segment amounted to NOK 15 million (13) in the first quarter.

The first quarter revenues were recognised based on O&M contracts totalling 289 MW.

Operating expenses reached NOK 10 million (7), up from NOK 9 million in the previous quarter. The increase is mainly reflecting somewhat higher maintenance activity in the quarter.

The EBITDA amounted to NOK 5 million (6) in the first quarter, corresponding to an EBITDA-margin of 33% (44%).

Depreciation and amortisation in the quarter amounted to NOK 0.2 million (0.5), and EBIT was NOK 5 million (5).

Scatec Solar's cash flow to equity from Operation & Maintenance was NOK 4 million (4).

OPERATION & MAINTENANCE – REVENUES AND EBITDA BY QUARTER

OPERATION & MAINTENANCE – KEY FIGURES

NOK MILLION	Q1'16	Q2'16	Q3'16	Q4'16	Q1'17
External revenues	0.9	0.5	0.9	-	-
Internal revenues	12.2	15.4	18.9	13.5	14.6
Total revenues and other income	13.1	15.8	19.8	13.5	14.6
Operating expenses	-7.3	-7.0	-7.4	-8.8	-9.7
EBITDA	5.7	8.8	12.4	4.7	4.9
D&A and impairment	-0.5	-0.6	-0.5	-0.7	-0.2
EBIT	5.2	8.2	11.9	3.9	4.6

OPERATION & MAINTENANCE – KEY RATIOS (%)

	Q1'16	Q2'16	Q3'16	Q4'16	Q1'17
EBITDA margin	44%	55%	63%	35%	33%
EBIT margin	40%	52%	60%	29%	32%

O&M-contracts are included at Taking Over Date (TOD). Refer to appendix for definition of project milestones.

Development & Construction

There continues to be high activity in the Project Development and Construction organisation. The Development team is focused on finalizing development activities, structuring equity financing and finalizing debt financing for the projects in backlog. The Solutions team is similarly finalizing sourcing of components, preparing execution plans and getting ready for mobilizing for the projects in backlog.

Refer to separate section for more details and status on project backlog and pipeline.

Operating expenses were NOK 15 million (22) in the first quarter. This comprised of approximately NOK 8 million for early stage development of new projects and NOK 7 million related to construction preparations.

EBITDA was NOK -15 million (8) in the first quarter. Depreciation, amortisation and impairment amounted to NOK 1 million (2), and EBIT was thus NOK -16 million (5).

Scatec Solar's cash flow to equity from Development & Construction was NOK -11 million (7).

DEVELOPMENT & CONSTRUCTION – REVENUES AND EBITDA BY QUARTER

DEVELOPMENT & CONSTRUCTION – KEY FIGURES

NOK MILLION	Q1'16	Q2'16	Q3'16	Q4'16	Q1'17
External revenues	-	-	-	-	-
Internal revenues	257.8	304.5	36.7	-	0.1
Net gain project sale	0.2	1.4	-	6.7	-
Net income associated	-0.6	-2.4	-0.1	-0.2	-0.3
Total revenue and
other income	257.4	303.5	36.6	6.4	-0.2
Cost of sales	-227.6	-275.1	-36.8	-0.1	-
Gross profit	29.8	28.4	-0.1	6.3	-0.2
Operating expenses	-22.3	-16.6	-13.8	-23.9	-15.2
EBITDA	7.5	11.8	-13.9	-17.6	-15.4
D&A and impairment	-2.4	-4.5	-1.6	-1.9	-0.6
EBIT	5.1	7.3	-15.5	-19.5	-15.9

KEY RATIOS (%)

	Q1'16	Q2'16	Q3'16	Q4'16	Q1'17
Gross margin	12%	9%	0%	99%	N/A
EBITDA margin	3%	4%	-38%	-273%	N/A
EBIT margin	2%	2%	-42%	-303%	N/A

Refer to appendix for definition of project milestone.

Corporate & Eliminations

Corporate activities include corporate services, management and group finance. The net operating cost at corporate level amounted to NOK 11 million (12) in the first quarter 2017.

CORPORATE – KEY FIGURES

NOK MILLION	Q1'16	Q2'16	Q3'16	Q4'16	Q1'17
Total revenues	2.4	2.0	2.3	3.1	3.0
Operating expenses	-14.0	-16.9	-14.8	-11.5	-13.5
D&A and impairment	-0.2	-0.2	-0.2	-0.2	-0.3
EBIT	-11.8	-15.0	-12.7	-8.6	-10.8
Net external interest
expenses	-9.1	-8.8	-9.9	-9.4	-9.1

Net interest expenses of NOK -9.1 million (-9.1) is primarily influenced by corporate funding and the NOK 500 million senior unsecured green bond in particular. See note 6 for further information.

ELIMINATIONS – KEY FIGURES

NOK MILLION	Q1'16	Q2'16	Q3'16	Q4'16	Q1'17
Revenues	-272.3	-321.9	-57.9	50.5	-17.6
Cost of sales	227.6	275.1	36.8	-	-
Operating expenses	14.5	17.4	21.2	16.6	-17.6
EBITDA	-30.2	-29.4	-	67.2	-
D&A	15.7	15.3	15.5	48.9	16.5
EBIT	-14.5	-14.1	15.5	116.1	16.5

Gross profits (i.e. revenues and expenses) generated in the D&C segment are eliminated in the consolidated income statement and reduces the consolidated book value of the solar power plants. The profits generated through project development and plant construction is hence improving the consolidated operating profit through lower depreciation charges over the economic life of the solar power plants. In the first quarter this effect amounted to NOK 17 million (16).

The internal revenues generated in the Corporate and O&M segments are eliminated in the consolidated income statement with corresponding elimination of operating expenses, amounting to NOK 18 million (15) in the first quarter.

CONSOLIDATED INCOME STATEMENT

NOK MILLION	Q1'16	Q2'16	Q3'16	Q4'16	Q1'17
Revenues	228	213	281	363	276
EBITDA	165	153	222	294	222
Operating profit (EBIT)	107	93	154	210	160
Profit before income tax	-35	6	12	115	38
Profit/(loss) for the period	-23	6	11	77	31
Profit/(loss) to Scatec Solar	-46	5	-1	46	4
Profit/(loss) to non controlling interests	23	1	12	31	27
Total assets	7,726	7,633	7,537	7,075	7,492
Equity (%) 8)	17%	15%	15%	19%	20%
Net interest bearing debt	4,210	4,490	4,509	3,942	3,633

8) The book value of consolidated assets reflects eliminations of internal margins generated through project development and construction, operation and maintenance, whereas the consolidated debt includes non-recourse debt in project companies at full amount. This reduces the consolidated equity and equity ratio.

Revenues

Scatec Solar reported consolidated revenues of NOK 276 million in the first quarter 2017, up from NOK 228 million in the same period last year, with the growth reflecting sales of electricity from new power plants in Jordan of NOK 30 million and increased revenues from existing power plants of NOK 18 million offset by a NOK 8 million revenue decrease due to the sale of the Utah Red Hills power plant in the fourth quarter 2016.

Net revenues included NOK -0.3 million (-0.6) of loss from associated companies.

Operating expenses

Consolidated operating expenses amounted to NOK 54 million (63) in the first quarter. This comprised of approximately NOK 28 million for operation of existing power plants, NOK 8 million for early stage development of new projects, NOK 7 million related to construction of power plants and NOK 10 million of corporate expenses (excluding eliminated intersegment charges).

Personnel expenses amounted to NOK 21 million (23) and other operating expenses to NOK 33 million (39).

Operating profit

Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to NOK 222 million (165) in the first quarter. The increased profitability year on year primarily reflects the growth in sales from the Jordan plants and positive translation effects particularly related to the ZAR.

Depreciation, amortisation and impairment amounted to NOK 62 million (59) in the first quarter. The increase is mainly explained by commencement of asset depreciation of new solar power offset by the sale of the Utah Red Hills plant.

Thus, operating profit (EBIT) was NOK 160 million (107) in the first quarter.

Thus, operating profit (EBIT) was NOK 210 million (163) in the fourth quarter and NOK 563 million (523) for the full years.

Net financial items

NET FINANCIAL ITEMS – KEY FIGURES

NOK MILLION	Q1'16	Q2'16	Q3'16	Q4'16	Q1'17
Interest income	12.1	15.5	8.8	14.1	13.2
Other financial income	-	0.4	-	-	-
Financial income	12.1	15.8	8.8	14.1	13.2
Interest expenses	-116.2	-117.2	-129.2	-133.7	-123.9
Other financial expenses	-2.5	-2.1	-1.8	-2.0	-3.5
Financial expenses	-118.7	-119.3	-131.1	-135.7	-127.4
Foreign exchange gains/(losses)	-34.5	16.5	-19.2	27.2	-8.3
Net financial expenses	-141.1	-87.0	-141.5	-94.4	-122.5

Financial income amounted to NOK 13 million (12) in the first quarter.

Financial expenses amounted to NOK 127 million (119) in the first quarter. The increase in interest expenses reflect increased debt financing of the growing asset base, partly offset by the sale of the Utah Red Hills plant. Interest expenses on the solar power plants amounted to NOK 110 million (100) whereas interest expenses on corporate funding amounted to NOK 10 million (10) in the first quarter.

Foreign exchange losses amounted to NOK -8 million (-34) in the first quarter. These effects are largely reflecting the strengthening of the EUR and weakening of the USD in the first quarter and are mainly non-cash and related to intercompany balances.

Profit before tax and net profit

Profit before income tax was NOK 38 million (-35) in the first quarter.

Income tax expense was NOK -7 million (12) in the first quarter, corresponding to an effective tax rate of 17.7% (33.6%). The underlying tax rates in the companies in operation are in the range of 0%-35%. In some markets Scatec Solar receives special tax incentives intended to promote investments in renewable energy. In addition to the relative weighting of the underlying tax rates, the consolidated effective tax rate in the first quarter is primarily influenced by eliminated intercompany transactions subject to different statutory tax rates as well as a release of a valuation allowance related to tax losses carried forward, partly offset by withholding tax paid on dividends from the South-African plants. Net profit was NOK 31 million (-23) in the first quarter.

A profit of NOK 4 million (-46) was attributable to the equity holders of Scatec Solar in the first quarter. A profit of NOK 28 million (23) was attributable to non-controlling interests in the first quarter.

Non-controlling interests (NCI) represent financial investors in the individual solar power plants, and partners in some development projects. The allocation of profits between NCI and Scatec Solar is generally affected by the fact that NCI only have shareholdings in solar power plants, while Scatec Solar also carries the cost of project development and corporate functions.

Impact of foreign currency changes in the quarter

During the first quarter 2017 the NOK depreciated against two of the Group's main currencies (ZAR and USD) and appreciated against the CZK compared to the average rates for the fourth quarter. This positively affected consolidated revenues by approximately NOK 13 million quarter on quarter. At the same time the currency movements increased operating expenses, deprecations, interest expense and tax, reducing the net impact of the currency movements on net profit in the quarter to approximately NOK 4 million.

The quarter-on-quarter net foreign currency losses was up NOK 36 million, from a gain of NOK 27 million in the fourth quarter 2016 compared to a loss of NOK 8 million in the first quarter 2017. These currency effects are to a large extent related to non-cash gains/ losses on intercompany balances.

Following the changes in the relevant currencies in the first quarter, the Group has recognised a foreign currency translation loss of NOK 27 million 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 project companies.

CONSOLIDATED CASH FLOW

Net cash flow from consolidated operating activities amounted to NOK 262 million (9) in the first quarter 2017, compared to the EBITDA of NOK 222 million. The cash flow is primarily affected by changes in the working capital.

Net cash flow from consolidated investing activities was NOK -44 million (-409), mainly driven by further investment in the project development pipeline and backlog.

Net cash flow from financing activities was NOK 198 million (27), affected by the share capital increase of NOK 373 million and dividend of NOK -106 million paid to non-controlling interests. There were no draw down of non-recourse financing in the first quarter (64). Interest and down payments amounted to NOK -69 million (-20).

Refer to note 6 for a detailed cash overview.

SCATEC SOLAR'S PROPORTIONATE SHARE OF CASH FLOW TO EQUITY

"Scatec Solar's proportionate share of cash flow to equity", defined as EBITDA minus interest expenses, normalised debt instalments and tax (i.e. before changes in Net Working Capital), is a non-GAAP measure that seeks to estimate the company's ability to generate funds for equity investments in new solar power plant projects and/or for shareholder dividends over time.

PROPORTIONATE SHARE OF CASH FLOW TO EQUITY

NOK MILLION	Q1'16	Q2'16	Q3'16	Q4'16	Q1'17
Power Production	26.4	31.9	45.9	44.1	29.3
Operation & Maintenance	4.4	6.7	9.5	3.7	3.8
Development & Construction	6.5	10.2	-9.8	-12.0	-11.4
Corporate	-15.5	-17.7	-16.8	-13.2	-14.8
Total	21.9	31.0	28.7	22.6	6.8
SSO project equity investments	-28.0	-0.3	-	-4.7	-
Distributions to SSO from project companies	3.0	58.3	52.1	20.6	80.9
Dividends to corporate shareholders	-	-61.9	-	-	-

"Scatec Solar's proportionate share of cash flow to equity" was NOK 7 million (22) in the first quarter. The decrease compared to fourth quarter 2016 is mainly explained by increased loan repayments in 2017.

During the first quarter Scatec Solar received dividends and distributions of NOK 81 million from the power producing project entities in South Africa.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

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 ringfenced non-recourse debt held in the entities owning the power producing assets is consolidated at full value. These accounting principles reduce the consolidated equity ratio.

Total equity was NOK 1,522 million (1,312) as of 31 March 2017, representing an increase of NOK 209 million during first quarter. The increase is mainly due to the private placement raising NOK 380 million (9,380 thousand new shares at a price of NOK 40.50 per share) partly offset by dividends paid from project companies to non-controlling interests of NOK 106 million and mark-tomarket revaluation of interest rate swaps recognised in other comprehensive income.

As a result of the above the book equity ratio increased to 20.3% from 18.6% at the end of the fourth quarter.

The more relevant equity to capitalisation ratio for the recourse group (excluding the non-recourse financed project entities) as defined in the corporate bond agreement was 78% at the end of the first quarter. See note 6 for more information.

Total assets amounted to NOK 7,492 million (7,075) as of 31 March 2017, an increase of NOK 417 million during first quarter.

Non-current assets amounted to NOK 5,629 million (5,591) as of 31 March 2017, an increase of NOK 38 million during first quarter.

Current assets amounted to NOK 1,863 million (1,484), which was an increase of NOK 379 million during first quarter – mainly explained by increased cash balance following the private placement.

Of the total cash and cash equivalents of NOK 1,562 million, NOK 797 million was cash in project companies in operation, and NOK 12 million was cash in project companies under development. Other restricted cash amounted to NOK 88 million and NOK 665 million was free cash at the group level. Refer to Note 6 for definition of cash terms and more information on the corporate overdraft facility.

Financial assets in the balance sheet primarily comprise interest rate derivatives in the South African project companies.

Total liabilities increased to NOK 5,970 million from NOK 5,762 at the end of fourth quarter.

Total non-current liabilities amounted to NOK 5,300 million at the end of first quarter, compared to NOK 5,253 million at the end of fourth quarter. NOK 4,340 million of this was non-recourse project financing pledged only to the assets and performance of each individual project, compared to NOK 4,304 million at the end of fourth quarter. The increase during first quarter relates to currency translation effects.

Total current liabilities increased to NOK 671 million, from NOK 509 million at the end of fourth quarter. The increase mainly reflects mark-to-market revaluation of interest rate swaps and increased accrual for interest on current non-recourse project financing liabilities.

PROJECT BACKLOG, PIPELINE AND OPPORTUNITIES

PROJECT STAGE (IN MW)	Q4 2016 9)	Q1 2017 9)
In operation	322	322
Project backlog	731	1,131
Project pipeline	1,085	745
Project opportunities	2,008	1,965

9) Status per reporting date.

Project backlog

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.

BACKLOG OVERVIEW

LOCATION	CAPACITY	(MW) CURRENCY 10)	CAPEX ESTIMATE (MILLION)	ANNUAL PRODUCTION (GWH)
Egypt	400	USD	450	870
South Africa	258	ZAR	4,600	645
Malaysia	197	MYR	1,240	285
Brazil	150	BRL	720	305
Honduras	53	USD	100	110
Mozambique	40	USD	80	77
Mali	33	EUR	52	60
Total	1,131	NOK	13,000	2,352

10) Currency' specifics currency of PPA tariff, capex and project finance debt.

Total annual revenues from the 1,131 MW in backlog is expected to reach NOK 1,750 million 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. Project backlog EPC contract value is expecting to represent NOK ~11,000 million.

Scatec Solar share of equity investments in the project backlog is expected in the range of NOK 1,700 – 2,000 million.

Egypt, 400 MW

In April 2017, Scatec Solar and partners signed six 25-year PPAs for projects in "Round 2" of the FiT program in Egypt totalling 400 MW (DC).

All located in Ben Ban area near Aswan in Upper Egypt, the solar plants are expected to generate about 870 GWh of solar electricity per year.

Total investments for the 400 MW of solar plants is estimated at USD 450 million and the plants are expected to generate annual revenues of about USD 60 million over the 25-year contract period. Scatec Solar will build, own and operate all six projects and Scatec Solar's share of equity investments will be in the range of USD 50-70 million. Scatec Solar is partnering with local developers and with KLP Norfund Investments for equity investments in the projects and may add additional partners to an equity consortium before financial close.

European Bank for Reconstruction and Development (EBRD) is leading a consortium of banks that is expected to support the six projects with a total debt of up to USD 350 million.

Upington, South Africa, 258 MW

In April 2015 Scatec Solar was awarded preferred bidder status for three projects in Upington in the fourth bidding round under the REIPPP programme (Renewable Independent Power Producer Programme) in South Africa.

Project financing will be provided by Standard Bank and a syndicate of South African banks.

Scatec Solar will build, own and operate the solar power plants with a 42% shareholding. KLP Norfund Investments will hold 18% and a Trust (fully funded by Scatec Solar and KLP Norfund) will hold the remaining 40% the equity.

The timing of financial close of the projects relies on alignment between Eskom, the government owned utility, and various governmental bodies involved in the REIPP Programme in South Africa.

Malaysia, 197 MW

In December 2016 Scatec Solar joined forces with a local ItraMASled consortium that has signed three 21-year PPAs with the country's largest electricity utility, Tenaga Nasional Berhad (TNB).

Scatec Solar expects to invest about MYR 250 million through both ordinary preference shares and preference shares convertible to 49% equity ownership in the projects. Scatec Solar will build and operate the solar power plants.

CIMB, Malaysia's second largest commercial bank, has been appointed to arrange the non-recourse project debt financing totalling MYR 1,000 million for the three projects.

Scatec Solar and partners are finalizing the development steps of the project and the required project finance debt.

Brazil, 150 MW

In December 2016 Scatec Solar signed an agreement with the Brazilian company Kroma Energia Ltda. and its partners ("Kroma"), securing four PV plants totalling 150 MW (DC) co-located in the state of Ceará in Brazil.

The projects were bid and won by Kroma in the auction process held by ANEEL, the Brazilian Electricity Regulatory Agency, in November 2015. The project companies have since then signed 20-year PPAs with ANEEL. The PPAs stipulate that the plants shall be in commercial operation within the fourth quarter 2018.

Scatec Solar and its local partner have secured the final permits for the project and is progressing well on also securing the project debt for this project portfolio.

Los Prados, Honduras, 53 MW

In October 2015 Scatec Solar and Norfund acquired the Los Prados solar project in Honduras. The project has a secured 20-year PPA with Empresa Nacional de Energía Eléctrica (ENEE), the government-owned utility.

Scatec Solar will build, own and operate the solar power plants with a 70% shareholding. Norfund will hold the remaining 30% of the equity.

Project financing will be provided by the Central American Bank of Economic Integration (CABEI) and Export Credit Norway (ECN) with guarantee from the Norwegian Export Credit Guarantee Institute (GIEK).

Scatec Solar and ENEE has obtain the required interregional interconnection permit for the first phase of the project representing a capacity of 35 MW, while the remaining 15 MW will be built in later in phase two.

Scatec Solar and Norfund is now working with the financing banks to complete the financing process.

Mozambique, 40 MW

In October 2016 Scatec Solar and Norfund signed a PPA securing the sale of solar power over a 25-year period to the state owned utility Electricidade de Mozambique (EDM).

Scatec Solar will build, own and operate the solar power plants with a 52.25% shareholding. Norfund and EDM will hold the remaining part of the equity.

IFC, the International Finance Corporation, a member of the World Bank Group, and the Emerging Africa Infrastructure Fund will provide project finance debt to the project.

Scatec Solar and partners are working to close out remaining formalities prior to financial close of the project.

Mali, 33 MW

In July 2015 Scatec Solar ASA together with its development partners International Finance Corporation (IFC) and Power Africa 1, signed a 25-year PPA with Energie du Mali (EDM).

IFC and African Development Bank (AfDB) will provide the non-recourse project finance for the project.

Scatec Solar will build, own and operate the solar power plants with a 52% shareholding. IFC Infraventures and Power Africa will hold the remaining part of the equity.

The process for obtaining the project finance debt and the required Partial Risk Guarantee form the World Bank to cover political risk is well advanced.

Pipeline

Project pipeline is defined as projects assessed to have more than 50% likelihood of reaching financial close and subsequent realisation.

PIPELINE OVERVIEW

CAPACITY (MW) South Africa 430 Pakistan 150 Nigeria 100 Kenya 48 Burkina Faso 17 Total pipeline 745

South Africa, 430 MW

In South Africa Scatec Solar bid the projects in the pipeline in the expedited bidding round under the REIPPP programme on November 11, 2015. Award of preferred bidder status for this tender round is delayed, but it is expected to be announced after financial close of the current Round 4 projects in South Africa.

Pakistan, 150 MW

In Pakistan Scatec Solar signed a joint development agreement with Nizam Energy for the development of 300 MW solar power plants. The first 150 MW under this agreement is in the state of Sindh and is included in pipeline. The project has received the grid study approval from the National Transmission and Despatch Company (NTDC) in April and the next development step will be to apply for the "costs plus tariff".

Nigeria, 100 MW

In July 2016 Scatec Solar signed an agreement to take over the 100 MW Nova Scotia project, located in Dutse L.G.A., the capital of Jigawa State in Nigeria.

The Nova Scotia project signed a power purchase agreement (PPA) with Nigerian Bulk Electricity Trader Plc (NBET) in July, 2016.

In November 2016 Scatec Solar signed a Joint Development Agreement (JDA) with Norfund and Africa50, an African Infrastructure Fund sponsored by the African Development Bank and more than 20 African States.

Apart from the three equity investors, the American Overseas Private Investment Corporation (OPIC), Islamic Development Bank and the African Development Bank are expected to be senior debt providers for the project.

Kenya, 48 MW

Norfund and Scatec Solar are together with the local development partner, Kenergy, developing a 48 MW project. In December 2016, the project initialled a Power Purchase Agreement with Kenya Power and Lighting Company (KPLC), the local utility.

Subsequent to this important milestone, the partners will continue the local development of the project, secure the sovereign support letter and identify the project finance structure.

Burkina Faso, 17 MW

In 2014, the Zagtouli project was, as one of four projects, selected as winner in the national tender process. The project was thus formally awarded by the government of Burkina Faso. The project has experienced political changes, but is now awaiting final sign-off by the Ministry of Finance before the power purchase agreement can be signed with the state-owned utility Société Nationale d'électricité du Burkina Faso (SONABEL).

Project opportunities

Project opportunities are defined as projects where a feasibility study and a business case evaluation have been made.

Scatec Solar currently holds project opportunities with a combined capacity of 1,965 MW across Americas, Africa and Asia.

OUTLOOK

Growth targets and investment guidance:

• By year end 2018: 1,300 1,500 MW in operation and/or under construction.
• Investments in new solar power plants are expected to yield average equity IRR of 15% nominal after tax.
• Project development & construction (D&C) gross margins averaging 15%.
• 2017 cash flow to Scatec Solar equity is expected to reach NOK 170-190 million from Power Production and Operation & Maintenance based on currency exchange rates as of mid-April 2017.

Scatec Solar is in discussions with the project finance lenders with the objective to release cash reserves in certain project companies in the portfolio. SSO proportionate share of the cash reserves expected to be released is estimated to NOK 50-70 million.

2017 AND Q2 2017 GUIDANCE

Power Production (PP)

In 2017 power production is expected to reach 640 GWh compared to 791 GWh in 2016. The reduction is explained by the sale of the Utah plant at the end of 2016, partly offset by full year production at the Jordan plants.

In Q2 2017 power production is expected to reach 145 GWh compared to 156 GWh in Q1. The decrease is mainly explained seasonally lower production at existing plants.

Operation and Maintenance (O&M)

2017 O&M revenues are expected to reach NOK 75-80 million with an EBITDA margin of 40 – 50%.

Development & Construction (D&C)

D&C revenues and margins are dependent on timing of commencement and pace of execution of the company's project backlog and pipeline.

Corporate & Eliminations

Corporate costs are expected remain at current levels as the corporate functions have been strengthened over the recent quarters.

Interest expenses related to the NOK 500 million bond will continue to affect the Corporate segment.

Elimination will continue to reflect D&C and O&M revenues and costs related to internal deliveries to project companies managed and consolidated by Scatec Solar.

DIVIDEND POLICY

The Company's objective is to pay shareholders consistent and growing cash dividends. Scatec Solar's dividend policy is to pay its shareholders dividends representing 50% of free cash distributed from the power producing project companies. For 2016, the Annual General Meeting resolved a dividend of NOK 0.71 per share, totalling NOK 73 million. The dividend is expected to be paid on or about 15 June 2017.

RISK

Scatec Solar has entered into long-term fixed price contracts for the sale of electricity from all its current solar power plants and the entry into such contracts is a prerequisite for financing and construction of the projects in the backlog and pipeline. All existing electricity sales contracts are entered into with stateowned utilities typically under regulation of various state programs to promote renewable energy. As a consequence, Scatec Solar is to a certain degree subject to political risk in the countries it operates.

The main economic risk going forward relate to operational performance of existing power plants, timely completion of solar plants under construction and progress in the transitioning of projects in backlog through financial close and into construction.

Scatec Solar has established a solid project pipeline, but further growth of the company will depend on a number of factors such as project availability, access to financing, component availability and pricing, price development for alternative sources of energy and the regulatory framework in the relevant markets.

In terms of specific financial risks, Scatec Solar is mainly exposed to currency risk, credit risk, liquidity risk and to some extent interest rate risk. Financial risks management in Scatec Solar is based on the objective of reducing cash flow effects and to a less extent accounting effects of these risks.

For further information refer to the 2016 Annual Report.

RELATED PARTIES

Note 27 in the annual report for 2016 provides details of transactions with related parties and the nature of these transactions. For details on first quarter 2017 related party transactions see note 9 of this interim report.

FORWARD LOOKING STATEMENTS

This condensed interim report contains forward-looking statements based upon various assumptions. These 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 Company cannot assure that the future results, level of activity or performances will meet these expectations.

First quarter 2017

Condensed interim financial information

Interim consolidated statement of profit or loss

NOK THOUSAND	NOTES	Q1 2017	Q1 2016	FULL YEAR 2016
Revenues	2	276,549	228,238	1,012,938
Net gain/(loss) from sale of project assets	2,3	-	207	75,405
Net income/(loss) from associated companies	2	-271	-584	-3,394
Total revenues and other income		276,278	227,861	1,084,942
Personnel expenses	2	-20,505	-23,296	-86,199
Other operating expenses	2	-33,486	-39,383	-165,713
Depreciation, amortisation and impairment	2,3	-61,985	-58,611	-270,083
Operating profit		160,302	106,571	562,954
Interest and other financial income	4,5	13,180	12,070	50,796
Interest and other financial expenses	4,5	-127,373	-118,734	-504,801
Net foreign exchange gain/(losses)	4,5	-8,337	-34,480	-10,052
Net financial expenses		-122,530	-141,144	-464,057
Profit/(loss) before income tax		37,772	-34,573	98,897
Income tax (expense)/benefit	7	-6,732	11,623	-28,410
Profit/(loss) for the period		31,040	-22,950	70,487
Profit/(loss) attributable to:
Equity holders of the parent		3,630	-46,155	3,502
Non-controlling interests		27,410	23,205	66,985
Basic and diluted earnings per share (NOK)	11	0.04	-0.49	0.04
Basic weighted average no of shares (in thousand)	11	94,546	93,816	93,816

Interim consolidated statement of comprehensive income

NOK THOUSAND	NOTES	Q1 2017	Q1 2016	FULL YEAR 2016
Profit/(loss) for the period		31,040	-22,950	70,487
Other comprehensive income:
Items that may subsequently be reclassified to profit or loss
Net movement of cash flow hedges	5	-146,560	-92,315	-114,582
Income tax effect	5	41,037	25,848	32,084
Foreign currency translation differences		14,678	-36,250	5,341
Net other comprehensive income to be reclassified to profit or loss in subsequent periods		-90,845	-102,717	-77,157
Total comprehensive income for the period net of tax		-59,805	-125,667	-6,670
Attributable to:
Equity holders of the parent		-24,885	-94,882	-69,115
Non-controlling interests		-34,920	-30,785	62,446

Interim consolidated statement of financial position

NOK THOUSAND	NOTES	AS OF 31 MARCH 2017	AS OF 31 DECEMBER 2016
ASSETS
Non-current assets
Deferred tax assets	7	351,671	327,456
Property, plant and equipment – in solar projects	3	5,096,191	5,059,802
Property, plant and equipment – other	3	22,046	21,465
Goodwill		22,490	22,289
Financial assets	4,5	6,478	18,237
Other non-current assets	9	130,160	141,789
Total non-current assets		5,629,036	5,591,038
Current assets
Trade and other receivables		202,438	231,484
Other current assets	9	97,744	114,104
Financial assets	4,5	718	1,289
Cash and cash equivalents	6	1,562,458	1,137,224
Total current assets		1,863,358	1,484,101
TOTAL ASSETS		7,492,394	7,075,139

Interim consolidated statement of financial position

NOK THOUSAND	NOTES	AS OF 31 MARCH 2017	AS OF 31 DECEMBER 2016
EQUITY AND LIABILITIES
Equity
Share capital	11	2,580	2,345
Share premium	11	1,192,644	819,053
Total paid in capital		1,195,224	821,398
Retained earnings		-218,085	-221,977
Other reserves		56,530	85,309
Total other equity		-161,555	-136,668
Non-controlling interests		488,279	628,009
Total equity	8	1,521,948	1,312,739
Non-current liabilities
Deferred tax liabilities	7	107,149	127,508
Non-recourse project financing	4	4,340,237	4,304,098
Bonds	6	496,042	495,417
Financial liabilities	4,5	14,001	7,330
Other non-current liabilities	9	342,236	318,798
Total non-current liabilities		5,299,665	5,253,151
Current liabilities
Trade and other payables	10	25,450	29,346
Income tax payable	7	6,923	10,680
Non-recourse project financing	4	359,056	279,473
Financial liabilities	4,5,6	130,759	6,584
Other current liabilities	9	148,593	183,166
Total current liabilities		670,781	509,249
Total liabilities		5,970,446	5,762,400
TOTAL EQUITY AND LIABILITIES		7,492,394	7,075,139

The interim financial information has not been subject to audit.

Oslo, 5 May 2017 The Board of Directors of Scatec Solar ASA

Interim consolidated statement of changes in equity

				OTHER RESERVES
NOK THOUSAND	SHARE CAPITAL	SHARE PREMIUM	RETAINED EARNINGS	FOREIGN CURRENCY TRANSLATION	HEDGING RESERVES	TOTAL	NON CONTROLLING INTERESTS	TOTAL EQUITY
At 1 January 2016	2,345	807,903	-164,909	127,460	34,343	807,142	618,255	1,425,397
Profit for the period	-	-	-46,155	-	-	-46,155	23,205	-22,950
Other comprehensive income	-	-	-	-22,038	-26,687	-48,727	-53,990	-102,717
Total comprehensive income	-	-	-46,155	-22,038	-26,687	-94,882	-30,785	-125,667
Share-based payment	-	3,435	-	-	-	3,435	-	3,435
Dividend distribution	-	-	-	-	-	-	-17,412	-17,412
Capital increase from NCI 1)	-	-	-	-	-	-	1,515	1,515
At 31 March 2016	2,345	811,338	-211,066	105,422	7,656	715,695	571,573	1,287,269
At April 2016	2,345	811,338	-211,066	105,422	7,656	715,695	571,573	1,287,268
Profit for the period	-	-	49,659	-	-	49,659	43,781	93,440
Other comprehensive income	-	175	3,703	-21,711	-6,058	-23,891	49,449	25,557
Total comprehensive income	-	175	53,362	-21,711	-6,058	25,768	93,230	118,997
Share-based payment	-	7,540	-	-	-	7,540	-	7,540
Dividend distribution	-	-	-61,196	-	-	-61,196	-156,286	-217,482
Capital increase from NCI 1) 2)	-	-	-13,381	-	-	-13,381	119,492	106,111
Distribution to NCI loan	-	-	10,304	-	-	10,304	-	10,304
At 31 December 2016	2,345	819,053	-221,977	83,711	1,598	684,730	628,009	1,312,739
At 1 January 2017	2,345	819,053	-221,977	83,711	1,598	684,730	628,009	1,312,739
Profit for the period	-	-	3,630	-	-	3,630	27,410	31,040
Other comprehensive income	-	-	262	11,472	-40,251	-28,517	-62,330	-90,847
Total comprehensive income	-	-	3,892	11,472	-40,251	-24,885	-34,920	-59,807
Share-based payment	-	863	-	-	-	863	-	863
Share capital increase	235	379,655	-	-	-	379,890	-	379,890
Transaction cost, net after tax	-	-6,927	-	-	-	-6,927	-	-6,927
Dividend distribution	-	-	-	-	-	-	-105,595	-105,595
Capital increase from NCI 1)	-	-	-	-	-	-	785	785
At 31 March 2017	2,580	1,192,644	-218,085	95,183	-38,653	1,033,669	488,279	1,521,948

The interim financial information has not been subject to audit.

1) Non-controlling interests.

2) Included in this line item is a reclassification from non-current liabilities to the non-controlling interests' share of equity of NOK 105,461 related to shareholder loans granted to the project companies in Jordan.

During first quarter 2017 the group increased the share capital. See note 11 for further information.

Interim consolidated statement of cash flow

NOK THOUSAND	NOTES	Q1 2017	Q1 2016	FULL YEAR 2016
Cash flow from operating activities
Profit before taxes		37,774	-34,573	98,899
Taxes paid	7	-8,009	-19,069	-29,143
Depreciation and impairment	3	61,985	58,611	270,083
Net income associated companies/sale of project assets	11	271	377	-72,011
Interest and other financial income	4	-13,180	-12,070	-50,796
Interest and other financial expenses	4	127,373	118,734	504,801
Unrealised foreign exchange (gain)/loss	4	26,233	16,396	29,036
(Increase)/decrease in trade and other receivables		29,046	29,692	-10,102
(Increase)/decrease in other current/non-current assets		27,477	-24,151	148,448
Increase/(decrease) in trade and other payables	10	-3,896	-131,909	-87,951
Increase/(decrease) in current liabilities		-11,135	8,738	-176,228
Increase/(decrease) in financial assets and other changes	5,9	-11,920	-1,375	106,935
Net cash flow from operating activities		262,019	9,401	731,971
Cash flow from investing activities
Interest received	4	13,180	12,070	50,797
Investments in property, plant and equipment	3	-57,222	-421,519	-883,634
Proceeds from sale of project assets, net of cash disposed	11	-	-	250,840
Net cash flow from investing activities		-44,042	-409,449	-581,997
Cash flow from financing activities
Interest paid	4	-42,887	-19,814	-509,047
Proceeds from non-recourse project financing	4	-	63,943	241,337
Repayment of non-recourse project financing	4	-26,550	-	-156,706
Share capital increase	11	372,963	-	-
Dividends paid to equity holders of the parent company	8	-	-	-61,918
Dividends and other distributions paid to non-controlling interest		-105,595	-17,412	-173,699
Net cash flow from financing activities		197,931	27,142	-660,033
Net increase/(decrease in cash and cash equivalents		415,908	-372,906	-510,059
Effect of exchange rate changes on cash and cash equivalents		9,326	-48,547	8,679
Cash and cash equivalents at beginning of the period	6	1,137,224	1,639,029	1,638,604
Cash and cash equivalents at end of the period	6	1,562,458	1,217,576	1,137,224
Cash in project companies in operation	6	797,278	662,076	708,466
Cash in project companies under development/construction	6	11,645	116,314	7,000
Other restricted cash	6	88,113	162,001	117,840
Free cash	6	665,422	277,185	303,918
Total cash and cash equivalents	6	1,562,458	1,217,576	1,137,224
Hereof presented as:
Cash and cash equivalents		1,562,458	1,217,151	1,137,224
Financial liabilities		-	-425	-

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 Karenslyst Allé 49, NO-0279 Oslo, Norway. Scatec Solar 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 were authorised for issue by the Board of Directors on 4 May 2017.

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 the year ended 31 December 2016. Standards and interpretations mentioned in note 31 of the Group's annual report 2016 with effective date from financial year 2017, do not have a significant impact on the Group's condensed interim consolidated financial statements.

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 thousands 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 has made the following judgements, which have the most significant effect on the amounts recognised in the condensed interim financial statements:

Consolidation of new project 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 project companies owning the power plants. To be able to utilise the business model fully, Scatec Solar seeks to obtain operational control of the project 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.

Scatec Solar would normally seek to undertake the following distinct roles in its projects:

• As the largest shareholder providing equity financing to the project
• As (joint) developer, including obtaining project rights, land permits, off-take agreements and other local approvals
• As EPC supplier, responsible for the construction of the project
• As provider of operation and maintenance services to the projects, responsible for the day-to-day operations of the plant
• As provider of management services to the project companies

Even though none of the projects Scatec Solar are involved with are identically structured, the five roles/activities described above constitute the main and relevant activities which affect the variable return. When assessing whether Scatec Solar controls a project company as defined by IFRS 10 Consolidated Financial Statements, all of the above agreements are analysed. During first quarter 2017 three project companies in Malaysia were consolidated for the first time. Construction has not yet commenced and the activity is currently limited to project development. Scatec Solar's investment is held through redeemable convertible preference shares which will constitute a shareholding of 49%

upon conversion. The Company has concluded that it through its involvement has the power to control these entities. Furthermore, Scatec Solar is exposed to variable returns and has the ability to affect those returns through its power over the companies.

Refer to note 2 of the 2016 annual report for further information on judgements.

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 affected by external factors, such as weather conditions. The power production at the PV solar parks is directly affected 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), Operation and Maintenance (O&M) and Development and Construction (D&C).

Financing and operation of solar power plants is ring-fenced in project companies with a non-recourse project finance structure - where Scatec Solar contributes with the required equity, either alone or together with co-investors. For companies where Scatec Solar is deemed to have a controlling interest in accordance with IFRS 10, revenues, expenses, assets and liabilities are included on a 100% basis in the condensed interim Financial Statements and presented correspondingly in the Power Production segment reporting.

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 project 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 project companies to Scatec Solar, and any other project equity investors in accordance with the shareholding and the terms of the finance documents.

Operation and Maintenance

The Operation and Maintenance segment delivers services to ensure optimised operations of the Group's solar power producing assets through a complete and comprehensive range of services

for technical and operational management. Revenues are based on service agreements with a periodic base fee as well as a potential performance bonus.

Development and Construction

The Development and Construction segment derives its revenue from the sale of development rights and construction services to project 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, O&M 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 project company.

The management team assesses the performance of the operating segments based on a measure of gross profit and operating profit. The measurement basis for the segment data follows the accounting policies used in the consolidated financial statement for 2016 as described in Note 32 Summary of significant accounting policies.

Q1 2017
NOK THOUSAND	POWER PRODUCTION	OPERATION & MAINTENANCE	DEVELOPMENT & CONSTRUCTION	CORPORATE	ELIMINATIONS	TOTAL
External revenues	276,549	-	-	-	-	276,549
Internal revenues	-	14,582	72	2,969	-17,623	-
Net gain/(loss) from sale of project assets	-	-	-	-	-	-
Net income/(loss) from associates	-	-	-271	-	-	-271
Total revenues and other income	276,549	14,582	-199	2,969	-17,623	276,278
Cost of sales	-	-	-	-	-	-
Gross profit	276,549	14,582	-199	2,969	-17,623	276,278
Personnel expenses	-3,496	-3,291	-6,262	-7,456	-	-20,505
Other operating expenses	-29,792	-6,430	-8,892	-6,001	17,629	-33,486
Depreciation and impairment	-77,420	-237	-573	-298	16,543	-61,985
Operating profit	165,841	4,624	-15,926	-10,786	16,549	160,302

Q1 2016
NOK THOUSAND	POWER PRODUCTION	OPERATION & MAINTENANCE	DEVELOPMENT & CONSTRUCTION	CORPORATE	ELIMINATIONS	TOTAL
External revenues	227,333	905	-	-	-	228,238
Internal revenues	-	12,184	257,806	2,358	-272,348	-
Net gain/(loss) from sale of project assets	-	-	207	-	-	207
Net income/(loss) from associates	-	-	-584	-	-	-584
Total revenues and other income	227,333	13,089	257,429	2,358	-272,348	227,861
Cost of sales	-	2	-227,648	-	227,646	-
Gross profit	227,333	13,091	29,781	2,358	-44,702	227,861
Personnel expenses	-3,166	-2,633	-10,454	-7,043	-	-23,296
Other operating expenses	-30,446	-4,709	-11,830	-6,942	14,544	-39,383
Depreciation and impairment	-71,161	-544	-2,405	-155	15,654	-58,611
Operating profit	122,560	5,205	5,092	-11,782	-14,504	106,571

FULL YEAR 2016
NOK THOUSAND	POWER PRODUCTION	OPERATION & MAINTENANCE	DEVELOPMENT & CONSTRUCTION	CORPORATE	ELIMINATIONS	TOTAL
External revenues	1,010,643	2,295	-	-	-	1,012,938
Internal revenues	-	59,918	599,038	9,801	-668,757	-
Net gain/(loss) from sale of project assets	-	-	8,296	-	67,109	75,405
Net income/(loss) from associates	-	-	-3 394	-	-	-3,394
Total revenues and other income	1,010,643	62,213	603,940	9,801	-601,648	1,084,949
Cost of sales	-	-	-539,590	-	539,590	-
Gross profit	1,010,643	62,213	64,350	9,801	-62,065	1,084,949
Personnel expenses	-11,326	-10,514	-35,883	-28,476	-	-86,199
Other operating expenses	-145,925	-20,101	-40,714	-28,693	69,720	-165,713
Depreciation and impairment	-351,968	-2,324	-10,446	-753	95,408	-270,083
Operating profit	501,424	29,274	-22,693	-48,121	103,070	562,954

Note 3 Property, plant and equipment

The Group operates solar power plants in Europe, Middle East, Africa and South America. There were no power plants under construction during first quarter 2017.

reached the construction phase was NOK 690,073 thousand at 31 March 2017 (31 December 2016: NOK 640,205 thousand).

The carrying value of development projects that have not yet

There were no significant impairment losses during first quarter 2017 or 2016.

NOK THOUSAND	SOLAR POWER PLANTS	SOLAR POWER PLANTS UNDER DEVELOPMENT AND CONSTRUCTION	MACHINERY AND EQUIPMENT	TOTAL
Carrying value at 31 December 2016	4,419,597	640,205	21,465	5,081,267
Additions	5,457	49,878	1,887	57,222
Depreciation	-60,704	-	-1,281	-61,985
Impairment losses	-	-	-	-
Effect of foreign exchange currency translation adjustments	41,768	-10	-25	41,733
Carrying value at 31 March 2017	4,406,118	690,073	22,046	5,118,237
Estimated useful life (years)	20-25	N/A	3-5

Note 4 Net financial expenses and liabilities

Scatec Solar uses non-recourse financing for constructing and/ or acquiring assets, exclusively using as guarantee the assets and cash flows of the special purpose vehicle 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 companies operating in the Czech Republic, the non-recourse financing agreements include a cross default clause within the Czech group.

The project 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. Refer to note 6 in the 2016 Annual Report for more information. The maturity date for the loans ranges from 2028 to 2036. NOK 359,056 thousand of the Group's total non-recourse debt is due within 12 months and is presented as current in the statement of financial position.

During the first three months of 2017, the Group did not draw down any additional non-recourse debt.

NOK THOUSAND	Q1 2017	Q1 2016	FULL YEAR 2016
Interest income	13,180	12,070	50,439
Other financial income	-	-	357
Financial income	13,180	12,070	50,796
Interest expenses	-123,881	-116,230	-496,317
Other financial expenses	-3,492	-2,504	-8,484
Financial expenses	-127,373	-118,734	-504,801
Foreign exchange gains/(losses)	-8,337	-34,480	-10,052
Net financial expenses	-122,530	-141,144	-464,057

Note 5 Significant fair value measurements

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 11 in the annual report for 2016 provides details for each class of financial assets and financial liabilities, and how these assets and liabilities are grouped.

There are no significant changes for the presentation of these categories in the period, and there are no significant differences between total carrying value and fair value at reporting date. The presented table below summarises each class of financial instruments recognised in the condensed consolidated statement of financial position, split by the Group's basis for fair value measurement.

31 March 2017	NON-CURRENT	DERIVATIVE FINANCIAL	DERIVATIVE FINANCIAL
NOK THOUSAND	FINANCIAL INVESTMENTS	INSTRUMENTS (ASSETS)	INSTRUMENTS (LIABILITIES)	TOTAL FAIR VALUE
Fair value based on prices quoted in an active market (Level 1)	-	-	-	-
Fair value based on price inputs other than quoted prices (Level 2)	-	7,196	-144,760	-137,564
Fair value based on unobservable inputs (Level 3)	72	-	-	72
Total fair value at 31 March 2017	72	7,196	-144,760	-137,492

31 December 2016	NON-CURRENT	DERIVATIVE FINANCIAL	DERIVATIVE FINANCIAL
NOK THOUSAND	FINANCIAL INVESTMENTS	INSTRUMENTS (ASSETS)	INSTRUMENTS (LIABILITIES)	TOTAL FAIR VALUE
Fair value based on prices quoted in an active market (Level 1)	-	-	-	-
Fair value based on price inputs other than quoted prices (Level 2)	-	19,526	-13,914	5,612
Fair value based on unobservable inputs (Level 3)	72	-	-	72
Total fair value at 31 December 2016	72	19,526	-13,914	5,684

Note 6 Cash, cash equivalents and corporate funding

NOK THOUSAND	31 MARCH 2017	31 DECEMBER 2016
Cash in project companies in operation	797,278	708,466
Cash in project companies under development/construction	11,645	7,000
Other restricted cash	88,113	117,840
Free cash	665,422	303,918
Total cash and cash equivalents	1,562,458	1,137,224
Hereof presented as:
Cash and cash equivalents	1,562,458	1,137,224
Financial liabilities	-	-

Cash in project companies in operation includes restricted cash in proceeds 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 project companies under development/construction comprise shareholder financing and draw down on term loan facilities by project companies to settle outstanding external EPC invoices.

Other restricted cash comprises restricted deposits for withholding tax, guarantees, VAT and rent as well as collateralised shareholder financing of project companies not yet distributed to the project companies.

Reconciliation of movement in free cash

NOK THOUSAND	Q1 2017	Q1 2016	FULL YEAR 2016
Free cash at beginning of period	303,918	651,359	650,933
Net free cash flow from operations outside non-recourse financed companies	280,645	-349,598	-448,025
Equity contributions/collateralised for equity commitments in project companies	-	-27,993	-33,007
Distributions from project companies	80,859	2,992	134,016
Free cash at end of the period	665,422	276,760	303,918

In the first quarter of 2016, Scatec Solar entered into an overdraft facility agreement with Nordea Bank, covering an USD 30 million overdraft facility and an uncommitted guarantee facility. Both facilities with a tenor of 1 year and rolled forward one year at the time. The facilities replaced all other corporate guarantees and overdraft facilities existing at the date of the new agreement.

The overdraft facility is made available on a master top account in a group account system and can be drawn in any currency being part of the group account system. Overdraft interest is the 7-day interbank offer rate in the relevant currency plus a margin of 2.5%. Per 31 March 2017, the Group has not drawn on the facility.

During fourth quarter 2015 Scatec Solar successfully completed a NOK 500 million senior unsecured green bond issue with maturity in November 2018. The bonds are listed on the Oslo Stock

Exchange. The bonds carry an interest of 3 month NIBOR + 6.5%, to be settled on a quarterly basis. During first quarter, an interest amounting to NOK 10,157 thousand (9,641) was expensed.

Per 31 March 2017, Scatec Solar was in compliance with all covenants under the bond and overdraft facility agreement. The book equity of the recourse group, as defined in the loan agreement, was NOK 1,799,335 thousand per quarter end. Refer to loan agreement available on www.scatecsolar.com/investor/debt and note 5 to the 2016 annual financial statements for further information and definitions.

The proceeds from the bond issue is included in the table above as net free cash flow from operations outside non-recourse financed companies.

Note 7 Income tax expense

For the first quarter ended 31 March 2017, the effective income tax rate was primarily influenced by a reversal of valuation allowance on tax losses carried forward, partly offset by withholding tax paid on dividends from the South-African plants. The underlying tax rates in the companies in operation are in the range of 0%-35%. 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 project 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 project company.

Effective tax rate

NOK THOUSAND	Q1 2017	Q1 2016	FULL YEAR 2016
Profit before income tax	37,772	-34,573	98,897
Income tax (expense)/benefit	-6,732	11,623	-28,410
Equivalent to a tax rate of (%)	17.8	33.6	28.7

Movement in deferred tax

NOK THOUSAND	Q1 2017	Q1 2016	FULL YEAR 2016
Net deferred tax asset at beginning of period	199,948	137,234	137,234
Recognised in the consolidated statement of profit or loss	-1,804	12,012	-15,917
Deferred tax on financial instruments recognised in OCI	41,037	25,848	32,084
Recognised in the consolidated statement of changes in equity	2,972	1,515	4,374
Tax effect of ITC treated as government grant	-	1,014	-
Disposals of subsidiaries	-	-	29,118
Witholding taxes carried forward	-	-	-1,715
Translation differences	2,369	478	14,770
Net deferred tax asset at end of period	244,522	178,101	199,948

Note 8 Dividend

For 2016, the Board of Directors proposed a dividend of NOK 0.71 per share, totalling NOK 73,270 thousand (including the 9,380 thousand new shares issued as part of the private placement in March 2017). Distribution of dividends is resolved by a majority vote of the Annual General Meeting of the shareholders of the Company, and on the basis of a proposal from the Board

of Directors. The Annual General Meeting has the power to reduce, but cannot increase the dividend proposed by the Board of Directors. The share was trading excluding dividend rights (ex-date) on the first business day following the Annual General Meeting held 24 April 2017. The dividend is expected to be paid on or about 15 June 2017.

Note 9 Current and non-current assets/liabilities – related parties and co-investors

As of 31 March 2017, Scatec Solar has receivables on non-controlling interests of NOK 103,733 thousand (126,385). NOK 79,811 thousand (89,485) of the receivables relates to committed but not paid equity in project companies in South Africa. Further included in other non-current receivables are loans provided to the equity consolidated company Scatec Energy (US) of NOK 11,077 thousand (11,475). In addition, the Group has receivables of NOK 3,539 thousand (3,557) on co-investors related to equity financing of project companies in Jordan. Scatec Solar also has loan receivables on key management personnel of NOK 5,798 thousand (7,211).

In relation to the structuring and financing of the project companies in the Group, financial instruments are issued by both the controlling and non-controlling interests. Such financing is granted both as formal equity and shareholder loans. The

shareholder loans granted to Kalkbult, Linde, Dreunberg, ASYV, Oryx, EJRE and GLAE are recognised as equity as the instruments include no contractual obligations. The shareholder loans provided to the Agua Fria project company is recorded as a liability. Shareholder loans from non-controlling interests amounts to NOK 177,286 thousand (175,547) as of 31 March 2017. Other non-current liabilities include NOK 52,066 thousand (31,098) related to project development cost sharing agreements with equity partners related to projects in Egypt, Honduras, Mozambique and Kenya.

For further information on project financing provided by co-investors, refer note 25 to the 2016 annual financial statements.

Included in other current liabilities is NOK 20,602 thousand (29,457), mainly related to dividends to non-controlling interests.

Note 10 Trade and other payables

The consolidated trade and other payables of NOK 25,450 thousand mainly consist of construction related supplier credits. Consequently, the balance is affected by the activity level in the Development & Construction segment. The decreased payables at 31 March 2017 compared to 31 December 2016 of NOK 29,346 thousand, reflects down payments of outstanding supplier credits related to the construction of Agua Fria and the Jordan portfolio, and the settlement of Utah Red Hills.

Note 11 Earnings per share and capital increase

During first quarter 2017 Scatec Solar successfully raised NOK 379,890 thousand through a private placement consisting of 9,380 thousand new shares at a price of NOK 40.50 per share. Total transaction cost for the capital increase is recognized in equity and amounted to NOK 6,927 thousand after tax.

Earnings per share is calculated as profit/(loss) attributable to

the equity holders of the parent company divided by the average number of shares outstanding.

Diluted earnings per share is affected by the option program for equity-settled share based payment transaction established in October 2016, see note 26 Employee benefits in Annual report 2016.

Q1 2017	Q1 2016	FULL YEAR 2016
3,630	-46,189	3,502
94,546	93,816	93,816
0.04	-0.49	0.04
94,720	93,816	93,965
0.04	-0.49	0.04

Note 12 Subsequent events

No events have occurred after the balance sheet date with significant impact on the interim financial statements for the first quarter 2017.

Definitions

Backlog

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

Pipeline

Project pipeline is defined as projects assessed to have more than 50% likelihood of reaching financial close and subsequent realisation.

Opportunities

Project opportunities are defined as projects that have not yet reached a 50% likelihood of reaching financial close and subsequent realisation. However, the company has verified feasibility and business cases for the projects.

Definition of project milestones

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.

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 offtaker agreement price. This milestone is regulated by the off-taker agreement with the power off-taker.

Take Over Date (TOD): The date on which the EPC contractor hands over the power plant to the project 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.

Definition of Non-IFRS financial measures

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

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

SSO proportionate share: is defined as the equity holders of the parent company's proportionate share of consolidated revenues, expenses, profits and cash flows.

Cash flow to equity: is EBITDA less normalised (i.e. average quarterly) loan and interest repayments, less normalised income tax payments.

Scatec Solar's proportionate share of cash flow to equity: is defined as the Company's proportionate share of EBITDA less normalised (i.e. normalised over each calendar year) loan repayments and interest payments, less normalised income tax payments. The definition excludes changes in net working capital and investing activities.

Project equity: is defined as equity and shareholder loans.

Net interest expense: is defined as interest income less interest expenses, excluding shareholder loan interest expenses and accretion expenses on asset retirement obligations.

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.

Book equity ratio: is defined as total equity divided by total assets.

Scatec Solar ASA

Karenslyst Allé 49, 0279 Oslo, Norway www.scatecsolar.com Phone: +47 48 08 55 00 Email: post@scatecsolar.com

www.scatecsolar.com