Scatec ASA

Investor Presentation • May 31, 2016

Scatec Solar Capital Markets Day

Oslo, May 31, 2016

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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 forward-looking 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 for the day

TIME	TOPIC	SPEAKER
08.30 – 09.30	1. Introduction 2. Markets and opportunities	Raymond Carlsen, CEO Terje Osmundsen, SVP
	Break
09.45 – 10.45	3. Project development 4. Solutions	Terje Pilskog, EVP Pål Helsing, EVP
	Break
11.00 – 12.00	5. Power Production and O&M 6. Financials and funding	Torstein Berntsen, EVP Mikkel Tørud, CFO
	Break
12.15 – 13.00	7. EBRD – Lenders perspectives 8. Summary and Q&A	Harry Boyd-Carpenter Raymond Carlsen, CEO

Speakers

Raymond Carlsen, CEO	Mr. Carlsen joined Scatec Solar in 2009 from Aker ASA, where he was responsible for the development of the company's portfolio of energy related businesses. He has more than 20 years of industrial experience from management positions.
Terje Osmundsen, SVP Business Development	Mr. Osmundsen joined Scatec Solar in 2009 and is responsible for Business Development, Emerging Markets. Broad professional background including Prime Minister's Office, management consulting, leadership roles from telecom, engineering and energy industries. Regular contributor to industry and public debate on climate and energy issues.
Terje Pilskog, EVP Project Development & Project Finance	Mr. Pilskog joined Scatec Solar in 2012 from the position as SVP of REC Systems and Business Development in Germany. Prior to REC, he was Associated Partner at the management consulting company McKinsey & Co.
Pål Helsing, EVP Solutions	Mr. Helsing joined the Company in 2015 from the role as President of Kongsberg Oil and Gas Technologies AS and a member of the Kongsberg Group Executive Management Team. Before that, he held several executive positions within Aker Solutions.
Torstein Berntsen, EVP Power Production & Asset Management	Mr. Berntsen joined Scatec Solar in 2010 from the position as CFO in the parent company Scatec AS. Before joining Scatec, he had more than 10 years of experience from Arthur Andersen and later Ernst & Young.
Mikkel Tørud, CFO	Mr. Tørud joined Scatec Solar in 2014 from the position as SVP Investor Relations and Business Development and member of Group Management in REC. Prior to REC he was commercial advisor in BP and management consultant in PA Consulting Group.
Harry Boyd-Carpenter, Senior Banker at EBRD	Mr. Boyd-Carpenter is a Senior Banker in EBRD's Power and Energy Utilities team with responsibility for all EBRD's activities in the Egyptian and Jordanian power sectors. He has worked on a wide range of debt and equity transactions in the power and infrastructure sectors across Russia, Mongolia, the Caucasus, the Balkans and Jordan.

1. Introduction

Raymond Carlsen, CEO

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Generating and capturing PV value in emerging markets

Fully integrated business model tailored for emerging markets 1

Strong global demand for PV accelerates growth in opportunities 2

Excellent track record in capturing value from complex PV projects 3

Solid asset base and a significant self funding capacity 4

Strong project pipeline supporting further growth in attractive markets 5

A solid track record of developing and building PV

383 MW in operation:

Installation track record (MW):

• 15 years of experience
• 60+ projects in 10 countries

602

559

Scatec has evolved and continues to adapt to market and industry dynamics

	Initiation*	From EPC provider to integrated IPP	Build asset portfolio, diversify and enhance value	Further strategic considerations
Focus	• Three times world largest solar power plants (1.6 MW)	• Retained ownership of power plants • Breakthrough in South Africa • Established Operation & Maintenance and Asset management as separate business	• Scaling for accelerated growth IPO and access to capital • • Geographical diversification	• Integration / market maturity • Geographical reach • Portfolio optimization • Business offering
Year	2001-2007	2008 2009 2010 2011 2012	2013 2014 2015 2016	2017 2018
	Retain Ownership (IPP)
Scope of work		Start Operation and Maintenance (O&M) Start Design and Construction (D&C)
	Start Project Development

Cost reductions drives strong demand growth

* System cost will vary from market to market depending on system size, market maturity, bankability etc.

Source: Bloomberg New Energy Finance, Q1 2016 PV Market Outlook

Scatec Solar develops, builds, owns & operates solar plants for 20 years

Phases	Origination • Opportunity	Development • Pipeline	Structuring • Backlog	Delivery • Construction	Power Production O&M • Operation
Key activities	• Analysis & Intelligence • Business opportunity • Partnerships • Commercial viability	• Site control PPA and support • agreements • Business case • Regulatory approvals/permits	• Equity, debt structuring • Engineering	• Procurement Construction • Management	• Operation & Maintenance • Asset management

The integrated model captures the full project value

Integration key to assessing new opportunities

• With small integrated teams we can assess new project opportunities effectively
• Key questions: Can we apply our business model, meet our financial targets and control risks?
• Quality assessments ensure resource discipline and increase likelihood for success The business case:

Project assessment using SSO competencies:

A truly sustainable business model

• Solar plants embedded in local communities in emerging economies for 20-25 years
• Economic activity is of vital importance to both countries and communities
• Local suppliers, local employees and good relations with local communities impact performance, cost and risks
• Environmental and Social Impact Assessments are undertaken at the start of the project phase
• Community relations, social and environmental impacts are managed as an integrated part of the business
• Specialist advisors engaged to manage CSR and Economic Development programs

A history of profitable growth

Strong project pipeline in attractive markets

426 MW IN OPERATION / UNDER CONSTRUCTION

Regions

Americas, Africa, Asia, MENA

Regions

Americas, East and West Africa, South Africa, Egypt, Pakistan

Regions

South Africa, Mali, Honduras, Brazil

Outlook and targets

* Based on currency rates as of mid April 2016. Utah Red Hills with no cash flow contribution in 2016 based on merchant pricing. The higher PPA price effective from Jan 1 2017. Part 1.12

Strong growth in power production

• Power production set to reach more than 3 TWh per year with current growth targets
• Contract length of 20 to 25 years

2. Market and opportunities

18

Terje Osmundsen, SVP

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Introduction

• Scatec Solar a track record as early mover:
• South Africa (from 2010)
• Mali (from 2011)
• Jordan (from 2012)
• Egypt (from 2014)
• Developed a holistic skill-set and capabilities particularly competitive in emerging markets
• Globally, numerous emerging markets ready to embrace PV development
• SSO: Developing unique opportunities in several of tomorrow's growth markets

Developing opportunities in a fully integrated model

Phases	Origination • Opportunity	Development • Pipeline	Structuring • Backlog	Delivery • Construction	Power Production O&M • Operation
Key activities	• Analysis & Intelligence • Business opportunity • Partnerships • Commercial viability	• Site control • PPA and support agreements • Business case • Regulatory approvals/permits	• Equity, debt structuring • Engineering	• Procurement • Construction Management	• Operation & Maintenance • Asset management
Integration of competence and capabilities	• structuring • • •	• Engineering, Procurement, EPC Construction Debt and equity Finance Working capital Power market analysis Power Grid impact studies market	Asset CSR Management The project opportunity Legal and Commercial regulatory	• Financial optimisation • Sustainability • Plant optimisation Operation • Maintenance • Power Purchase agreements • Contract/SPV structuring

Impressive cost reductions drive strong demand growth

* System cost will vary from market to market depending on system size, market maturity, bankability etc.

Source: Bloomberg New Energy Finance, Q1 2016 PV Market Outlook

Large-scale solar - a major part of the market

Source: GTM, Solar Summit, May 2016

Emerging markets: Struggling to meet fast-growing demand

7%

kWh/Capita OECD Average 252 435 293 7.000 6.000 9.000 8.000 1.000 0 5.000 4.000 2.000 3.000 Egypt Bangladesh 1.697 South Africa 4.328 Mozambique Cote D'Ivoire Global Average Mozambique 15% South Africa 6% 8% Bangladesh 0% Egypt Mali Energy consumption per capita 2013 Average annual growth in power consumption

Source: World Bank, Development Indicators

Source: Recent official estimates

Solar PV is competitive

Illustrative dispatch graph showing dispatch of coal and oil-fired power plants

Source: Lazard Capital, LCOE v 9.0, Scatec Solar

Multiple drivers of demand for solar

Norwegian and international partners key for our success

• Project development and investment partnership
• Norfund (with KLP) are equity co-investors in South Africa, Rwanda and Honduras

IFC partnership:

• Project development and investment partner in West Africa, South Asia

GIEK partnership

• Project finance
• Guarantees and bonds

Project finance partners

• Multilateral development banks and commercial institutions

Climate finance partners

Key benefits:

• Access to lower cost of capital
• Expanded network for project origination
• Risk mitigation

Early-phase development: Our toolbox

Phase		Origination
Opportunity	Attract and identify opportunities	Develop and manage business case	Enter pipeline
Activities	• In-depth market and trend analysis • External communication, stakeholder presentations, building relationships • Efficient screening of enquires	• Evaluate and secure land • Explore finance arrangements • Social and environmental and grid assessment Negotiate initial commercial arrangements •
Know-how	• Business innovation • Thought leadership Inter-cultural understanding and • awareness	• Technical-financial • Deep socio-economic understanding Project and relationship management •
Network	Finance and other business partners • • NGOs • "Team Norway" • Developers and national stakeholders • Local stakeholders	• Co-development partners • Off-taker and host government agencies • DFIs, project and climate finance partners • Technology and equipment providers

2.4 GW of opportunities – emerging markets focus

3. Project Development and Project Finance

Terje Pilskog, EVP

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Develop to capture full project value

• From opportunity to financial close
• Integrated approach for efficient project development
• Strong central organization with local development partners
• Value creation and sustainability key development drivers
• Predictable cash flows to enable attractive, nonrecourse financing
• A solid pipeline and backlog has been built over the last 12 months

Project development in the integrated model

Phases	Origination • Opportunity	Development • Pipeline	Structuring • Backlog	Delivery • Construction	Power Production O&M • Operation
Key activities	• Analysis & Intelligence Business • opportunity • Partnerships • Commercial viability	• Site control • PPA and support agreements • Business case Regulatory • approvals /permits	• Equity, debt structuring • Engineering	• Procurement • Construction Management	• Operation & Maintenance • Asset management
Integration of competence and capabilities	• structuring • • •	• Engineering, Procurement, EPC Construction Debt and equity Finance Working capital Power market analysis Power Grid impact studies market	Asset CSR Management The project opportunity Legal and Commercial regulatory	• Financial optimisation • Sustainability • Plant optimisation Operation • Maintenance • Power Purchase agreements • Contract/SPV structuring

Drivers of project development priorities

• Local partner set-up
• Sustainability
• 15% gross D&C margin
• Average nominal after-tax 15% return on gross equity investment
• Predicable cash flows
• Net equity investment level
• Additional sources of revenues and value
• Repatriation of funds
• Risk and security mitigation

Project development organization

• 3 Scatec Solar hubs
• Clear direction and focus on business model
• Tight central control on development spending and business case
• Local development partners managed by SSO hubs
• Development partners with equity participation
• Global development partners like IFC and Norfund

Project development process

Activity	Opportunity Ongoing	Development 6-18 months	Structuring 6-9 months
Development partners
Development budget
Site selection
Site surveying
PPA
Environmental permits
Socialization of project
Pre-design / engineering
Support Agreement
Grid connection
Legal structure
Construction permits
Business case validation

Stable and predictable cash flows

Power production

• Stable resource
• Proven technology
• Guaranteed performance

Revenues

• Take or pay energy sales
• Creditworthy off-takers
• Sovereign guarantees
• Guaranteed uptime

Costs

• Stable debt service
• O&M agreements
• Matched currencies
• Equipment warranties
• Insurance

50 MW solar power plant example (USDm)*

Value creation in the integrated model

50 MW solar power plant example (USD m)*

A number of factors influence the project returns

A comprehensive project finance process

Activity	Development 6-18 months	Structuring 6-9 months
Establish Financial Model
Test interest / share PIM
Indicative terms
Share Financial Model
Sign mandate letters
Negotiate Term Sheets
Negotiate project documents
Technical and legal due diligence
Credit committee
Negotiate loan documents
Board approval
Sign loan documents
Conditions precedent
Financial close and first disbursement

Lowest possible funding costs

Leverage

• Debt sizing based on debt service capacity
• Mezzanine structures

Costs of debt

• Commercial banks vs Development banks (DFIs)
• Interest rates, hedging and tenure
• Concessional financing and grants
• Transaction fees

Limit funding need

• Limit reserve accounts and contingencies
• Manage transaction fees legal costs

Equity costs

• SSO equity participation
• Shareholder loans
• Co-investors

50 MW solar power plant example Capex and funding in %

Project Finance for key projects

The deliverable: A shovel ready project

Simplified illustration of company structure and main contracts in place

4. Solutions

Pål Helsing, EVP

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Building plants with a well proven operating model

Our integrated approach is key to provide an optimised solution from project development through construction, operation and maintenance to power production.

Value-contribution to our integrated model:

• Engineering in close collaboration with Project Development and O&M ensuring optimum plant design
• Procurement leveraging a high global volume to achieve low costs and tier-1 partnerships
• Close cooperation with local construction companies to ensure competitive "balance of system costs" and effective risk-mitigation

Scatec Solar projects under construction

Solutions in the fully integrated model

Phases	Origination Opportunity •	Development Pipeline •	Structuring Backlog •	Delivery Construction •	Power Production O&M Operation •
Key activities	Analysis & • Intelligence • Business opportunity Partnerships • • Commercial viability	• Site control • PPA and support agreements • Business case • Regulatory approvals/permits	• Equity, debt structuring • Engineering	• Procurement • Construction Management	• Operation & Maintenance • Asset management
Integration of competence and capabilities	• structuring Working capital • • •	• Engineering, Procurement, EPC Construction Debt and equity Finance Power market analysis Power Grid impact studies market	Asset CSR Management The project opportunity Legal and Commercial regulatory	• Financial optimisation • Sustainability • Plant optimisation Operation • Maintenance • Power Purchase agreements • Contract/SPV structuring

A solid track record of building solar plants

383 MW in operation:

Installation track record (MW):

• 15 years of experience
• 60+ projects in 10 countries

602

559

50 MW PV plant – build up

Our integrated approach enables key decisions to be made at an early stage of the project

A standard high level operating model and project plan from Structuring through Delivery

Value drivers in the engineering and construction phase

Our sourcing model is tailored to our projects

Sourcing based on frame agreements focusing on cost, quality and delivery assurance

• Leverage high volume in project pipeline and opportunities
• Regular verification of competitiveness and technology development to ensure we are at forefront of a fast changing industry
• Roadmaps to include O&M needs

In country risk "boxed" into one construction contract (sub-EPC)

• Scope: From receipt of "bulk" material to mechanical completion
• Close cooperation to meet our CSR standard
• Effective execution utilising synergies between local knowledge and Scatec Solar's EPC experience
• Extensive contractor engagement program

Installation work includes a high number of standard components and work processes

• Typical volume for 50 MW power plant
• Containers: 1 000
• Drilling of foundation holes: 13 500
• Ramming of foundation piles: 13 500
• Installation of substructure tables: 4 500
• Installation of modules: 180 400
• Significant opportunity for
• Optimisation of work processes
• Use of unskilled labour
• High need for quality control

Example from some recent projects

	Agua Fria, Honduras 60 MW	Dreunberg, South Africa 75 MW	ASYV, Rwanda 9 MW
Jobs Created (Mounting and construction workers during peak construction period)	1,050	1,400	600
% Local Employees*	82%	77%	85%
Numbers of workers with documented skill enhancement	275**	142***	400**
Lost Time Injuries (Incident resulting in absence of one day/shift or more)	2	0	1

Part 4.12

Summary

Our integrated approach is key to provide an optimised solution from project development through construction, operation and maintenance to power production.

A robust project execution model:

• Operating system based on long experience from construction of PV plants
• Strong Project Management and project control
• Optimised plant design through multidiscipline teams
• Global sourcing leveraging high volumes
• Implementation of comprehensive quality plans ensuring plant performance

Scatec Solar projects under construction

5. Power Production, Asset Management and O&M

Torstein Berntsen, EVP

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Securing and maximizing returns from a growing portfolio of power producing assets

Phases	Origination	Development	Structuring	Delivery	Power Production O&M
	Opportunity •	Pipeline •	Backlog •	Construction •	Operation •
Key activities	Analysis & • Intelligence • Business opportunity Partnerships • • Commercial viability	• Site control • PPA and support agreements • Business case • Regulatory approvals/permits	• Equity, debt structuring • Engineering	• Procurement • Construction Management	• Operation & Maintenance • Asset management
Integration of competence and capabilities	• structuring Working capital • • •	• Engineering, Procurement, EPC Construction Debt and equity Finance Power market analysis Power Grid impact studies market	Asset CSR Management The project opportunity Legal and Commercial regulatory	• Financial optimisation • Sustainability • Plant optimisation Operation • Maintenance • Power Purchase agreements • Contract/SPV structuring

Benefits of an integrated, industrial approach to operating power plants

• Aligned focus on operational excellence and maximizing kWh produced
• Continuous search for improvement opportunities trough multidisciplinary teams
• Experience gained in operations translated to improvement initiatives for new projects
• Scale advantages and steeper learning curves through sharing of resources
• Additional cash flows from O&M and AM services

Contractual structure established to ensure good governance and efficient operations

• Simplified illustration of company structure and main contracts in place

Generating significant cash-flow from multiple sources

50 MW project example - typical structure

Key drivers of Cash Flow to Equity in an operating project

50 MW PV plant – build up

Drivers of production in a PV power plant

Weekly irradiation, Kalkbult (SA)

Week

While solar irradiation generally has low interannual variability (1 Standard Deviation = +/- 5% in most of the locations relevant to SSO), it is normal to observe significant variations in shorter time periods.

¹⁾ Expected monthly irradiation as per business case assumptions at financial close

5 weeks rolling average irradiation, Kalkbult (SA)

Week

A 5 week rolling average shows significantly less volatility, but it is still normal to observe +/- 15% variance in irradiation on a monthly basis. The seasonal pattern is still very clear.

¹⁾ Expected monthly irradiation as per business case assumptions at financial close

Annual accumulated irradiation, Kalkbult (SA)

¹⁾ Expected monthly irradiationas per business case assumptions at financial close

Annual accumulated irradiation vs. production

Comparing irradiation to production output, we see that the slightly lower than P50 irradiation observed so far on the plant has been more than offset by higher availability and performance than what was expected in the investment case.

1) Expected monthly irradiation/production as per business case assumptions at financial close

A global standardised approach to O&M based on significant experience

• Global SSO SCADA system allowing for remote monitoring and operation through which central experts can provide back-up and support to plantlevel operators.
• Global SSO operating system with standard operating procedures allowing efficient set up of new plant operations where local plant teams are leveraged by central support functions.
• Culture of uncompromising approach to quality and HSE
• Capable and results driven teams resulting in high performance of controllable KPIs.

2015 plant availability

The value of an integrated, industrial approach Example: Reducing downtime

A number of factors influence the project returns

50 MW solar power plant example (USD m)*

Equity IRR

Prepared for growth

• Power production set to reach more than 3 TWh per year with current growth targets
• Contract length of 20 to 25 years potential for additional power sales after this period

6. Financials and funding

Mikkel Tørud, CFO

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Our approach to investments and financing

Key principles:

• Controlling equity positions in the projects
• Capital discipline return and margin targets
• Investments funded through non-recourse project finance
• D&C margins key contribution to equity positions
• Working capital managed through project structuring
• Moderate debt at SSO ASA level reflecting the debt capacity of long term cash flows, with head room

The 60 MW Agua Fria solar power plant in Honduras

Cash flows in Scatec Solar

Steadily growing cash flow from operating plants

• 2016 cash flow to equity from PP and O&M: NOK 180-200 million

(*) Cash flow to equity is defined as EBITDA less normalised (i.e. average over each calendar year) loan and net interest repayments, less normalised income tax payments. The definition implies changes in net working capital and investing activities are excluded from the figure.

Structuring projects with "self-funding" capacity

-2 -2 -64 -21 Debt Equity 50 MW solar power plant example (USDm)* Year -2 Year -1 Year 0 Project company perspective: After tax return on equity ~15% Scatec Solar perspective: 50% equity ownership -2 -2 -11 10 Year -2 Year -1 Year 0 1 1 Year 2 2 2 2 2 Year 9 Year 8 Year 7 Year 6 Year 5 1 Year 4 Year 3 Year 1 1 2 3 Year 20 Year 19 6 6 3 Year 18 6 3 Year 15 3 Year 13 6 3 Year 12 Year 16 Year 17 3 Year 11 2 Year 14 Year 10 O&M Cash flow to SSO equity (50%) SSO D&C gross margin Year 15 ^{12 13 13} Year 9 Year 8 13 Year 12 ^{13 12} Year 14 Year 6 Year 13 ^{14 13 13} Year 10 12 Year 7 14 Year 11 12 Year 5 12 Year 4 Year 20 15 Year 16 Year 18 14 15 Year 17 Year 19 14 Year 1 11 Year 3 Year 2 11 11 Opex Debt repayment Interest expense Tax Cash flow to equity SSO Equity Investment (50%)

* Based on tariff of 11 USD cent/kWh

A self funded growth capacity of 300-400 MW per year

Basis for self funded growth capacity

• 2016 cash flow to equity from PP and O&M of NOK 180-200 million – growing with new operating assets
• D&C gross margins of 15% from realizing new power plants
• Project level leverage of 75% to 85%
• SSO equity positions of 50-60%
• Dividend policy; 50% of project company distributions paid to our shareholders
• Working capital managed through project structuring, trade finance and corporate overdraft (NOK 250 million)

Funding of 300-400 MW (NOK million)*

Sources:
CF from PP and O&M	~180-200
D&C cash flow*	~420-570
Total	~600 – 770
Uses:
SSO equity investments	~500-650
Corporate cost + dividends	~120-130

Working capital in project development phase:

• Project development expenses typically represents 3-4% of project capex
• SSO recovers the project development expenses at financial close - normally with a premium
• Project development cost is part of the project company capex budget

Working capital in construction phase:

• Targeting positive EPC cash flow milestone payments from project company + trade finance
• Milestone based construction financing part of SPV project finance facility
• EPC normally provides performance bonds to project company/customer

Project development cash flow*:

(*) 50 MW solar power plant example

Power price	• Fixed for 20-25 years, normally inflation adjusted • USD/EUR denominated or pegged tariff except in Czech and South Africa
Currency	Project Company: • Project company structure debt in same currency as long term revenues • Project company hedges any currency exposure during construction (milestone payments)
	EPC/ SSO ASA : • Milestone payments from project company structured to minimize currency exposure • Long term project company distributions not hedged
Interest rate	94% of project finance debt in group is on fixed interest of minimum 10 years from COD • • Corporate bond NOK 500 million – interest rate not hedged
Credit / counterparty	• Power purchase agreements with state owned utilities with government guarantees backing payment obligations • Political Risk Insurance considered in certain markets • Utah plant – solid investment grade rated off-taker

A history of profitable growth

Consolidated financials, NOK million

2015 segment results – explained

Full Year 2015 (NOK million)	Power Production	Operation & Maintenance	Development & Construction	Corporate	Eliminations	Consolidated
External revenues	863.0	4.1	0.7	-	-	867.7
Internal revenues	-	51.4	1,146.6	7.5	-1,205.5	-
Net gain/(loss) from sale of project assets	-	-	14.1	-	-	14.1
Net income / (loss) from associates	-	-	-0.9	-	-	-0.9
Total revenues and other income	863.0	55.4	1,160.5	7.5	-1,205.5	881.0
Cost of sales	-	-	-989.7	-	989.7	-
Gross profit	863.0	55.4	170.8	7.5	-215.8	881.0
Operating expenses	-102.9	-24.0	-69.7	-44.8	58.8	-182.6
EBITDA	760.1	31.4	101.2	-37.3	-156.9	698.4
Depreciation, amortisation and impairment	-227.6	-2.6	-6.5	-0.5	61.6	-175.6
Operating profit (EBIT)	532.5	28.8	94.6	-37.8	-95.4	522.8

• All power plants assets are deemed to be controlled by Scatec Solar
• Power Production & consolidated financials reported on 100% basis SSO's share ~45%
• O&M, D&C and Corporate gross profit are hence considered internal to the group and hence eliminated in consolidated P&L

Cash flow not affected by eliminations in the accounts

Cash flow to equity from PP and O&M* (NOKm) 3 39 Q2 15 5 7 Q3 15 Q4'15 4 Q1'16 9 ^{29 31 32 26} Q1 15 Operation & Maintenance (O&M) Power Production (PP) 39 13 Development and Construction (D&C)

Cash flow to equity from D&C* (NOKm)

Full year 2015 - NOK million	Power Production	O&M	D&C	Corporate	Total	Elim.	Consolidated
Revenues	863.0	55.4	1,160.5	7.5	2,086.4	-1,205.5	881.0
EBITDA	760.1	31.4	101.2	-37.3	855.4	-156.9	698.4
Net interest & loan repayments	-421.1		-0.1	6.8	-414.4
Total cash flow to equity*:	290.8	23.6	75.6	-22.1	367.9
SSO share of CF to equity*:	130.6	23.6	75.6	-22.1	207.7

(*) Cash flow to equity is defined as EBITDA less normalised (i.e. average over each calendar year) loan and net interest repayments, less normalised income tax payments. The definition implies changes in net working capital and investing activities are excluded from the figure.

Eliminated D&C margins affects book equity

• Margins created through Development & Construction of power plants are eliminated in consolidated financial statement
• Elimination booked against PP&E in consolidated financial statements

Leads to:

• A negative effect on consolidated equity short term as corresponding non-recourse finance is included at full value
• Improves consolidated net profit over time through reduced depreciation

Build up of PP&E as per 31.03.2016 NOKm

Financial position

A solid financial position

Consolidated financial position:

• Full consolidation of all project companies
• Cash position of NOK 1,217 million of which NOK 277 million free cash available outside project companies
• Total interest bearing liabilities* of NOK 5.4 billion of which NOK 4.9 billion non-recourse project financing

SSO financial position – outside project companies**:

• Equity of NOK 1,422 million
• Interest bearing liabilities of NOK 493 million (bond)
• Debt to capitalisation ratio of 26%

Financial position (NOKm) as of 31.3.2016

Prepared for further growth

• Risk managed through project structuring
• Controlling equity positions
• Integrated business model
• Non-recourse project finance
• "Cash flow to Scatec Solar equity" a key measure of value creation
• A solid "self funded" growth capacity
• Capital discipline return and margin targets
• Significant value potential in further optimization of current asset base

7. Financing solar in emerging markets

Scatec Solar Capital Markets Day – 31 May 2016 Harry Boyd-Carpenter, Senior Banker, Power and Energy Utilities

Part 7.2

DFIs, MDBs, IFIs…

• Public ownership
• Public mandate
• Strategically public, tactically private
• Patient capital
• Conservative on commercial and technical risks; appetite for political risks
• Deep commitment to environmental and social standards
• Mobilise and catalyse private finance – no crowding out

25 years of investment

AAA-rated, multilateral development bank, founded in 1991 to promote transition to modern and well-functioning markets

Since 1991, EBRD invested over €107 billion in over 4,400 projects across private and public sectors in its countries of operations, including:

In 2015:

• €9.4 billion invested in 381 projects
• Private sector accounted for 78% share
• Debt 82%, Equity 14% & Guarantee 4%

67 shareholders: 65 countries (China became the most recent member in 2016) and two institution

Net cumulative business investment €107 billion

4 %

• 29%

• Note: Unaudited as at end December 2014

Natural Resources -8% Power and Energy - 18% Net cumulative business volume €95bn

87 Part 7.4

Operational approach

Bankability in emerging markets

Governments and the energy trilemma

Solar in emerging markets

Source: IEA Energy Technology Perspectives 2015 – annual power sector deployment rates in the Two Degrees Scenario. Part 7.8

Jordan – Oryx solar project – April 2016

Financing solar in emerging markets

Scatec Solar Capital Markets Day – 31 May 2016 Harry Boyd-Carpenter, Senior Banker, Power and Energy Utilities

Summary

Raymond Carlsen, CEO

Our values

Predictable Driving results Changemakers Working together

Positive market outlook

• The global market for PV is expected to grow significantly in the years to come
• Emerging economies will continue to take advantage of lower cost renewables
• Lower oil and gas prices have limited impact on the appetite for renewables
• Market transformation opens up for new business offerings
• Scatec Solar is strengthening its position as a leading emerging market player

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